Northwest Bancshares (NWBI)
NASDAQ:NWBI
Want to see NWBI full AI Analyst Report?
Top Page
Northwest Bancshares
(NASDAQ:NWBI)
Select Model
Select Model
Rating:75Outperform
Price Target:
$15.50
â–²(15.24% Upside)
Action:Reiterated
Date:05/27/26
The score is driven by attractive valuation (low P/E and strong dividend) and constructive technical momentum (price above key moving averages with positive MACD). Financial performance is solid but held back by multi-year margin compression and weaker recent cash-flow momentum, while the earnings call was supportive with strong operating results and steady guidance despite limited NIM upside and some isolated credit watch items.
Positive Factors
Commercial & Industrial Loan Growth
Sustained, high single‑digit to double‑digit C&I loan growth materially rebalances the loan mix toward higher‑yielding commercial assets. This durable organic growth supports recurring net interest income expansion, enhances diversification beyond rate‑sensitive retail mortgages, and strengthens long‑term revenue predictability.
Negative Factors
Margin Compression
A multi‑year decline in net margins materially reduces the bank's earning power and constrains return on equity without either sustained revenue mix improvement or cost reductions. Management expects limited near‑term NIM upside, making margin recovery dependent on secular repricing or structural shifts in asset mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial & Industrial Loan Growth
Sustained, high single‑digit to double‑digit C&I loan growth materially rebalances the loan mix toward higher‑yielding commercial assets. This durable organic growth supports recurring net interest income expansion, enhances diversification beyond rate‑sensitive retail mortgages, and strengthens long‑term revenue predictability.
Read all positive factors
Northwest Bancshares (NWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.12B
Dividend Yield6.48%
Average Volume (3M)988.94K
Price to Earnings (P/E)16.0
Beta (1Y)0.65
Revenue Growth16.32%
EPS Growth5.14%
CountryUS
Employees1,996
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.94
Shares Outstanding146,314,650
10 Day Avg. Volume942,508
30 Day Avg. Volume988,936
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)0.93
Price to Sales (P/S)2.01
P/FCF Ratio12.42
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue2.67
Enterprise Value/Gross Profit3.87
Enterprise Value/Ebitda13.79
Forecast
1Y Price Target
$14.33Price Target Upside6.57% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.36
Revenue Forecast (FY)$719.83M
Northwest Bancshares Business Overview & Revenue Model
Company Description
Northwest Bancshares, Inc. serves as the parent company for Northwest Bank, a state-chartered savings institution offering a full spectrum of banking solutions for both personal and business customers. Its deposit products encompass checking, savi...
How the Company Makes Money
NWBI primarily makes money through its banking operations. The largest earnings driver for a traditional bank like Northwest Bank is net interest income: it collects interest and fees on loans and other interest-earning assets (including commercia...
Northwest Bancshares Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call presented strong core operating results: record quarterly net income, robust C&I loan growth, improving efficiency and solid deposit metrics. Credit trends were constructive with lower charge-offs, reduced NPAs and stable ACL coverage. However, management flagged isolated increases in classified loans, continued runoff in legacy mortgage and CRE portfolios, a competitive deposit environment, and limited near-term NIM upside. Management maintained prior guidance and emphasized disciplined organic growth and capital management rather than near-term M&A.Positive Updates
Record Net Income and Strong Earnings Growth
Net income of $51 million for Q1 2026, a company record, driving >16% year-over-year net income growth. GAAP EPS was $0.34 and adjusted EPS $0.35, up from $0.31 and $0.33 in the prior quarter.
Negative Updates
Increase in Classified Loans
Classified loans increased both as a percentage of total loans and in absolute dollars, partially attributed to two C&I borrowers. Management indicated these are isolated but noted the inflow into classified loans.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Net Income and Strong Earnings Growth
Net income of $51 million for Q1 2026, a company record, driving >16% year-over-year net income growth. GAAP EPS was $0.34 and adjusted EPS $0.35, up from $0.31 and $0.33 in the prior quarter.
Read all positive updates
Company Guidance
The company reiterated its full‑year 2026 outlook while emphasizing disciplined organic growth and expense management, targeting low‑ to‑mid single‑digit loan growth with period‑end loans at $13.1B (average loans +$102M q/q) and strong C&I momentum (+$191M avg q/q, +28.2% YoY); NIM is expected to be roughly stable in the low 3.70% area (370 bps in Q1), securities yield rose to 3.15% (26% HTM), and deposit costs have continued to decline (cost of deposits 1.48%, average deposits +$276M q/q, 43% of CDs rolled from a 3.60% weighted avg to new money at ~3.12%); credit guidance was unchanged with ACL coverage around 1.15% (Q1 annualized net charge‑offs 16 bps, below the low end of guidance), NPAs 70 bps of avg loans, total delinquencies down to 1.30% (90+ days 34 bps), and the firm expects CRE stabilization rather than growth; capital and shareholder returns remain priorities (dividend $0.20/share, buyback authorization up to $50M) while driving efficiency (adjusted efficiency ratio 57.8%, pre‑tax/pre‑provision income $71.7M, ROAA 1.22%, ROTCE 14.6%, GAAP EPS $0.34 / adj EPS $0.35).Northwest Bancshares Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 902.50M | 876.99M | 754.09M | 700.05M | 557.84M | 534.14M |
| Gross Profit | 621.89M | 599.13M | 495.96M | 524.94M | 501.41M | 522.68M |
| EBITDA | 174.67M | 164.91M | 150.89M | 199.57M | 180.14M | 207.76M |
| Net Income | 133.09M | 126.01M | 100.28M | 134.96M | 133.67M | 154.32M |
Balance Sheet | ||||||
| Total Assets | 16.91B | 16.77B | 14.41B | 14.42B | 14.11B | 14.50B |
| Cash, Cash Equivalents and Short-Term Investments | 2.68B | 1.82B | 1.40B | 1.17B | 1.36B | 2.83B |
| Total Debt | 595.84M | 446.28M | 444.70M | 642.66M | 924.32M | 391.72M |
| Total Liabilities | 15.00B | 14.88B | 12.81B | 12.87B | 12.62B | 12.92B |
| Stockholders Equity | 1.90B | 1.89B | 1.60B | 1.55B | 1.49B | 1.58B |
Cash Flow | ||||||
| Free Cash Flow | 105.55M | 141.78M | 125.36M | 84.33M | 171.11M | 187.94M |
| Operating Cash Flow | 119.67M | 153.41M | 127.67M | 92.89M | 175.43M | 205.46M |
| Investing Cash Flow | -250.85M | -127.35M | 174.97M | -239.68M | -917.42M | -232.97M |
| Financing Cash Flow | 64.69M | -80.79M | -136.52M | 129.69M | -397.90M | 570.49M |
Northwest Bancshares Technical Analysis
Positive
13.45
Price Trends
13.79
Positive
13.15
Positive
12.49
Positive
Market Momentum
0.24
Positive
58.13
Neutral
44.50
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 13.45 is below the 20-day moving average (MA) of 14.25, below the 50-day MA of 13.79, and above the 200-day MA of 12.49, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 44.50 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 | $1.79B | 13.76 | 16.66% | 2.65% | 4.42% | 13.75% | |
76 Outperform | $1.73B | 9.39 | 22.34% | 0.27% | 4.92% | 14.55% | |
76 Outperform | $1.97B | 9.35 | 15.62% | 2.73% | 4.29% | 15.77% | |
75 Outperform | $2.12B | 15.98 | 7.30% | 6.48% | 16.32% | 5.14% | |
70 Outperform | $1.99B | 12.72 | 10.19% | 3.11% | 6.00% | 12.46% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
NWBI
Northwest Bancshares
14.48
3.04
26.57%
CHCO
City Holding Company
127.12
13.79
12.17%
FCF
First Commonwealth
19.53
4.63
31.08%
CASH
Pathward Financial
82.05
9.11
12.50%
OFG
OFG Bancorp
46.66
6.83
17.15%
Northwest Bancshares Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Northwest Bancshares Shareholders Approve New Equity Incentive Plans
Positive
May 26, 2026
On May 20, 2026, shareholders of Northwest Bancshares, Inc. approved two key capital and compensation programs: the 2026 Equity Incentive Plan, enabling stock-based and other incentive awards for officers, employees, directors and consultants, and...
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.