Education
About Us
Working with TipRanks
Follow Us
Northwest Bancshares (NWBI)
NASDAQ:NWBI
Top Page
Northwest Bancshares
(NASDAQ:NWBI)
Select Model
Select Model
Rating:74Outperform
Price Target:
$14.00
â–²(11.82% Upside)
Northwest Bancshares scores well due to strong financial performance and a positive earnings call highlighting strategic growth and improved margins. The stock's valuation is attractive with a low P/E ratio and high dividend yield. Technical indicators suggest a neutral trend with potential for upward movement.
Northwest Bancshares (NWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.83B
Dividend Yield6.39%
Average Volume (3M)836.74K
Price to Earnings (P/E)11.2
Beta (1Y)0.62
Revenue Growth14.86%
EPS Growth40.09%
CountryUS
Employees1,996
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.30
Shares Outstanding146,211,700
10 Day Avg. Volume1,018,993
30 Day Avg. Volume836,736
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)1.05
Price to Sales (P/S)2.22
P/FCF Ratio13.36
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit3.24
Enterprise Value/Ebitda9.13
Forecast
1Y Price Target
$13.25Price Target Upside5.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Northwest Bancshares Business Overview & Revenue Model
Company DescriptionNorthwest Bancshares, Inc. operates as the holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts various deposits, including checking, savings, money market deposit, term certificate, and individual retirement accounts. It also offers loan products comprising one-to-four-family residential real estate loans and loans collateralized by multi-family residential and commercial real estate; commercial business loans; and consumer loans, including automobile loans, sales finance loans, unsecured personal loans, credit card loans, and loans secured by deposit accounts. The company also offers investment management and trust services. As of December 31, 2021, it operated 170 community-banking locations in Pennsylvania, Western New York, Eastern Ohio, and Indiana. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Columbus, Ohio.
How the Company Makes MoneyNorthwest Bancshares generates revenue primarily through interest income from loans and investments, as well as non-interest income from service fees and other financial services. Key revenue streams include interest earned on commercial and consumer loans, mortgage loans, and investment securities. Non-interest income is derived from fees associated with deposit accounts, wealth management services, and insurance products. The company also benefits from partnerships with local businesses and organizations, enhancing its community presence and customer base. Additionally, prudent management of its loan portfolio and investment strategies plays a critical role in optimizing earnings and minimizing risk.
Northwest Bancshares Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with significant growth achievements, including the successful merger with Penns Woods, revenue increases, and improved net interest margins. However, challenges such as increased noninterest expenses and a rise in classified loans were noted.Q2-2025 Updates
Positive Updates
Successful Completion of Penns Woods Merger
The legal close of the Penns Woods merger was completed, marking the largest transaction in the company's history, with the expected cost reductions on target or better than original expectations.
Revenue Growth
Reported $150 million in revenue for the second quarter, representing a 53.5% increase compared to the prior year period.
Improved Earnings Per Share
GAAP net income of $33.7 million and earnings per diluted share of $0.26 compared to $0.04 in the second quarter of 2024. Adjusted earnings per diluted share increased by 10% compared to the year-ago quarter.
Strong Loan and Deposit Growth
19% increase in average C&I loans compared to the same period last year. Deposits increased $66 million quarter-over-quarter.
Net Interest Margin Improvement
Reported net interest margin of 3.56% for Q2 2025, compared favorably to the prior quarter's adjusted margin of 3.48%.
Negative Updates
Increased Noninterest Expenses
Noninterest expense increased 6.3% compared to the prior quarter and 5.5% versus the second quarter of 2024, largely due to merger-related expenses.
Increase in Classified Loans
Increase in classified loans due to healthcare loans, multifamily construction projects, and larger C&I borrowers impacted by macroeconomic uncertainties.
Potential Nonaccrual and NPA Creation
Concerns about potential increases in nonaccrual loans or NPAs from the classified loans, although the company believes they are adequately reserved for potential losses.
Company Guidance
In the Northwest Bancshares Second Quarter 2025 Earnings Call, the company highlighted several key metrics reflecting their robust performance and strategic growth. They reported a GAAP net income of $33.7 million, with earnings per diluted share at $0.26, marking a significant improvement from the previous year's $0.04 per share. Adjusted for one-time merger-related expenses, net income was $38.2 million, with earnings per diluted share of $0.30, representing a 10% increase from the second quarter of 2024. Northwest Bancshares achieved a net interest margin of 3.56%, up from 3.48% in the previous quarter after adjusting for a one-time interest recovery. The company also experienced a 19% increase in average commercial and industrial (C&I) loans year-over-year and maintained a low cost of deposits at 1.55%. Revenue for the quarter reached $150 million, a 53.5% increase from the prior year, despite a slight decrease from the previous quarter. The successful completion of the Penns Woods merger bolstered their balance sheet, contributing to a total asset increase to approximately $17 billion. Looking ahead, Northwest Bancshares expects to achieve full cost savings from the merger by the second quarter of 2026 and maintain a net interest income in the range of $139 million to $141 million in the fourth quarter.Northwest Bancshares Financial Statement Overview
Summary
Northwest Bancshares demonstrates solid financial performance with strong revenue growth and profitability margins. The balance sheet reflects a conservative approach to leverage, enhancing financial stability. However, declining free cash flow growth and potential cost pressures on margins warrant careful monitoring.Income Statement
Northwest Bancshares shows a solid revenue growth rate of 5.64% TTM, with improving margins. The gross profit margin is strong at 68.30%, and the net profit margin has increased to 17.52% TTM. EBIT and EBITDA margins are also healthy, indicating efficient operations. However, the gross profit margin has decreased from previous years, suggesting potential cost pressures.75
Positive
Balance Sheet
The company maintains a low debt-to-equity ratio of 0.27 TTM, reflecting prudent financial management. Return on equity is moderate at 8.89%, indicating decent profitability. The equity ratio is stable, suggesting a balanced capital structure. However, the decrease in stockholders' equity over time could be a concern if it continues.70
Positive
Cash Flow
Operating cash flow to net income ratio is low at 0.98% TTM, indicating potential cash flow challenges. Free cash flow growth has declined significantly by 30.19% TTM, which could impact future investments. Despite this, the free cash flow to net income ratio remains strong at 95.25%, showing efficient cash generation relative to earnings.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 818.91M | 754.09M | 700.05M | 558.36M | 534.14M | 563.06M |
| Gross Profit | 559.31M | 495.96M | 524.94M | 501.41M | 522.68M | 436.74M |
| EBITDA | 198.51M | 150.89M | 199.57M | 179.31M | 207.76M | 97.26M |
| Net Income | 143.50M | 100.28M | 134.96M | 133.67M | 154.32M | 74.85M |
Balance Sheet | ||||||
| Total Assets | 14.49B | 14.41B | 14.42B | 14.11B | 14.50B | 13.81B |
| Cash, Cash Equivalents and Short-Term Investments | 1.46B | 1.40B | 1.17B | 1.36B | 2.83B | 2.14B |
| Total Debt | 442.69M | 444.70M | 642.66M | 924.32M | 391.72M | 411.84M |
| Total Liabilities | 12.84B | 12.81B | 12.87B | 12.62B | 12.92B | 12.27B |
| Stockholders Equity | 1.64B | 1.60B | 1.55B | 1.49B | 1.58B | 1.54B |
Cash Flow | ||||||
| Free Cash Flow | 115.82M | 125.36M | 84.33M | 171.11M | 187.94M | 128.18M |
| Operating Cash Flow | 121.59M | 127.67M | 92.89M | 175.43M | 205.46M | 140.44M |
| Investing Cash Flow | -48.64M | 174.97M | -239.68M | -917.42M | -232.97M | -560.58M |
| Financing Cash Flow | -34.31M | -136.52M | 129.69M | -397.90M | 570.49M | 1.10B |
Northwest Bancshares Technical Analysis
Positive
12.52
Price Trends
12.32
Positive
12.38
Positive
12.24
Positive
Market Momentum
0.03
Positive
51.66
Neutral
46.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWBI, the sentiment is Positive. The current price of 12.52 is below the 20-day moving average (MA) of 12.55, above the 50-day MA of 12.32, and above the 200-day MA of 12.24, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 46.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWBI.
Northwest Bancshares Risk Analysis
Northwest Bancshares disclosed 48 risk factors in its most recent earnings report. Northwest Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Northwest Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.99B | 10.53 | 14.59% | 2.46% | 4.15% | 4.39% | |
76 Outperform | $1.82B | 13.31 | 1.10% | 3.05% | 4.57% | -15.68% | |
74 Outperform | $1.83B | 11.17 | 8.96% | 6.39% | 14.86% | 40.09% | |
74 Outperform | $1.83B | 15.25 | 16.03% | 2.50% | 8.28% | 6.96% | |
71 Outperform | $1.73B | 10.10 | 20.05% | 0.26% | 6.51% | 13.68% | |
70 Outperform | $1.85B | 16.04 | 7.03% | 3.14% | -1.28% | 32.40% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
NWBI
Northwest Bancshares
12.52
-0.05
-0.40%
CHCO
City Holding Company
126.53
12.24
10.71%
FCF
First Commonwealth
17.40
0.78
4.69%
CASH
Pathward Financial
76.04
10.20
15.49%
OFG
OFG Bancorp
44.68
0.66
1.50%
VBTX
Veritex
33.78
8.43
33.25%
Northwest Bancshares Corporate Events
Executive/Board ChangesM&A Transactions
Northwest Bancshares Completes Merger with Penns Woods
Positive
Jul 28, 2025
On July 25, 2025, Northwest Bancshares, Inc. completed its merger with Penns Woods Bancorp, Inc., enhancing its presence in Pennsylvania by adding 21 branch locations. The merger involved the consolidation of Penns Woods’ subsidiary banks into Northwest Bank, with all financial centers rebranded under the Northwest name. This strategic move positions Northwest to deliver greater value to shareholders and expand its range of services across its Pennsylvania footprint. Additionally, Richard Grafmyre, former CEO of Penns Woods, was appointed to the boards of Northwest and Northwest Bank, marking a significant leadership transition.
The most recent analyst rating on (NWBI) stock is a Sell with a $12.00 price target. To see the full list of analyst forecasts on Northwest Bancshares stock, see the NWBI Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.