Northwest Bancshares (NWBI) AI Stock Analysis

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Northwest Bancshares

(NASDAQ:NWBI)

Rating:75Outperform

Price Target:

$14.00

▲(10.15% Upside)

Northwest Bancshares receives a strong overall score due to its solid financial performance and positive earnings call, which highlighted significant growth and strategic achievements. The stock's attractive valuation further supports its appeal, although technical indicators suggest cautious optimism. Potential risks include declining free cash flow and increased noninterest expenses.

Northwest Bancshares (NWBI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.86B

Dividend Yield6.29%

Average Volume (3M)1.14M

Price to Earnings (P/E)11.3

Beta (1Y)0.68

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. Volume737,290

30 Day Avg. Volume1,137,194

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.98

Enterprise Value/Revenue2.21

Enterprise Value/Gross Profit3.24

Enterprise Value/Ebitda9.13

Forecast

1Y Price Target

$13.25

Price Target Upside4.25% 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 a strong financial position with impressive revenue growth and profitability. The balance sheet is well-managed with low leverage, and cash flow metrics indicate excellent liquidity. Despite minor fluctuations in gross profit margins, the company is on a positive growth trajectory.

Income Statement

Positive

The income statement shows strong revenue growth with a TTM increase of 2.8% and a previous annual increase of 7.7%. Gross profit margin is healthy at 66.7% TTM, though slightly down from previous years. Net profit margin is robust at 14.8% TTM, indicating effective cost management. EBIT and EBITDA margins are solid, indicating operational efficiency.

Balance Sheet

Positive

The balance sheet is stable, with a debt-to-equity ratio of 0.27, showing manageable leverage. Return on equity is decent at 7% TTM. The equity ratio is moderate at 11.3% TTM, suggesting a balanced asset structure. Overall, the company maintains a strong equity base with low debt levels.

Cash Flow

Positive

Cash flow analysis reveals a significant growth in free cash flow by 32.3% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.44 shows high cash conversion efficiency. The free cash flow to net income ratio of 1.45 further supports the company's liquidity strength.

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

Technical Analysis Sentiment

Positive

Last Price12.71

Price Trends

50DMA

12.48

Positive

100DMA

12.22

Positive

200DMA

12.35

Positive

Market Momentum

MACD

0.15

Negative

RSI

58.83

Neutral

STOCH

75.25

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 12.71 is above the 20-day moving average (MA) of 12.31, above the 50-day MA of 12.48, and above the 200-day MA of 12.35, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 75.25 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

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUBI	77 Outperform	$2.13B	16.64	8.17%	―	-7.45%	-45.67%
FCF	76 Outperform	$1.87B	13.68	9.31%	2.96%	4.57%	-15.68%
NWBI	75 Outperform	$1.86B	11.34	8.96%	6.29%	14.86%	40.09%
FBNC	74 Outperform	$2.30B	23.60	6.53%	1.61%	-2.04%	-14.82%
LKFN	72 Outperform	$1.73B	18.52	13.86%	2.91%	-1.41%	-6.42%
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%
CLBK	53 Neutral	$1.57B	249.75	0.57%	―	-0.90%	-67.89%

* Financial Sector Average

Performance Comparison

NWBI

Northwest Bancshares

12.71

0.34

2.75%

FBNC

First Bancorp

55.40

15.00

37.13%

FCF

First Commonwealth

17.88

1.90

11.89%

LKFN

Lakeland Financial

67.93

5.84

9.41%

CUBI

Customers Bancorp

67.29

18.24

37.19%

CLBK

Columbia Financial

15.01

-1.88

-11.13%

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.

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.Date of analysis: Aug 23, 2025