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Northwest Bancshares (NWBI)
NASDAQ:NWBI
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Northwest Bancshares
(NASDAQ:NWBI)
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Rating:69Neutral
Price Target:
$12.50
â–²(0.81% Upside)
Northwest Bancshares' overall score is driven by strong financial performance and attractive valuation, supported by a positive earnings call. However, technical indicators suggest bearish momentum, and liquidity concerns from declining cash flow metrics present risks.
Positive Factors
Revenue Growth
The strong revenue growth indicates robust demand for the company's services and effective business strategies, supporting long-term financial health.
Successful Merger Integration
Successful integration of the Penns Woods merger enhances the company's market position and operational scale, providing a foundation for future growth.
Strong Capital Position
A strong capital and liquidity position ensures the company can withstand economic fluctuations and invest in growth opportunities.
Negative Factors
Increased Non-Performing Assets
Rising non-performing assets can strain financial resources and indicate potential issues in credit quality, impacting long-term profitability.
Rising Loan Delinquencies
Increased loan delinquencies may signal underlying credit risk issues, potentially leading to higher future losses and impacting financial stability.
Declining Cash Flow Metrics
Declining cash flow metrics can limit the company's ability to fund operations and growth initiatives, posing a risk to long-term sustainability.
Northwest Bancshares (NWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.81B
Dividend Yield6.48%
Average Volume (3M)752.35K
Price to Earnings (P/E)13.9
Beta (1Y)0.60
Revenue Growth15.86%
EPS Growth16.50%
CountryUS
Employees1,996
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.29
Shares Outstanding146,099,980
10 Day Avg. Volume574,217
30 Day Avg. Volume752,348
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 Cap1.15
Enterprise Value/Revenue2.46
Enterprise Value/Gross Profit3.71
Enterprise Value/Ebitda13.76
Forecast
1Y Price Target
$13.00Price Target Upside4.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 net interest income and non-interest income. The key revenue stream is net interest income, which is derived from the difference between the interest earned on loans and investments and the interest paid on deposits and borrowings. This includes various loan products such as commercial, residential, and consumer loans. Additionally, the company earns non-interest income through fees from wealth management services, insurance products, and transaction fees associated with deposit accounts. Significant partnerships with local businesses and community organizations enhance its customer base and service offerings, contributing to overall earnings growth.
Northwest Bancshares Earnings Call Summary
Earnings Call Date:Oct 27, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 26, 2026
Earnings Call Sentiment Neutral
Northwest Bancshares had a strong quarter with successful integration of the Penns Woods merger and record revenue growth. However, challenges such as increased non-performing assets and rising delinquencies were noted. The company's strong capital and liquidity position, along with improved net interest margins, contribute to a positive outlook despite these challenges.Q3-2025 Updates
Positive Updates
Successful Completion of Penns Woods Merger
The Penns Woods merger was closed, marking the largest transaction in the company's history. The integration, including customer and data conversion, was completed successfully, with deal synergies meeting or exceeding expectations.
Record Revenue Achievement
Northwest Bancshares achieved a record revenue of $168 million for the third quarter, marking a more than 20% year-over-year growth.
Strong Commercial C&I Growth
The company delivered over 25% year-over-year average growth in commercial C&I loans, driven by strategic rebalancing and growth in specialty verticals and SBA lending.
Improved Net Interest Margin
Net interest margin improved by 9 basis points quarter-over-quarter to 3.65%, benefiting from higher average loan yields and purchase accounting accretion.
Solid Capital and Liquidity Position
The company reported a strong liquidity position, covering approximately 250% of uninsured deposits, and a CET1 ratio of 12.3%, well above regulatory requirements.
Negative Updates
Increased Non-Performing Assets
NPAs increased by $26.3 million, with $17 million attributed to acquired loans, raising NPAs as a percentage of loans plus OREO to 100 basis points.
Rising Loan Delinquencies
30-day plus loan delinquencies increased slightly from 1% to 1.10%, primarily from administrative issues related to acquired consumer loans.
Merger and Restructuring Charges
The third quarter GAAP EPS was impacted by merger and restructuring charges, reducing it to $0.02 per share.
Potential Higher Charge-offs
Net charge-offs were within guidance but could reach up to $13 million in Q4, reflecting ongoing work through the criticized and classified loan book.
Company Guidance
During Northwest Bancshares' Q3 2025 earnings call, the company provided guidance that highlighted several key financial metrics and strategic initiatives. The merger with Penns Woods significantly enhanced the balance sheet, resulting in $16.4 billion in total assets, $13.7 billion in deposits, and $12.9 billion in loans at quarter-end. The company achieved a record revenue of $168 million, marking a 20% year-over-year growth, with a net interest margin improvement to 3.65%. Adjusted EPS increased by 21% over the past nine months. Credit management showed progress, with a decrease of $74 million in legacy classified loans. The company maintained a strong capital position with a CET1 ratio of 12.3% and a TCE ratio of 8.6%. They also declared a quarterly dividend of $0.20, translating to a 6.5% annualized yield. Looking ahead, they plan to open new financial centers in Columbus and Indianapolis, aiming for sustainable and profitable growth with tight control over expenses and risk management.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.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.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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 846.27M | 754.09M | 700.05M | 557.84M | 534.14M | 563.06M |
| Gross Profit | 561.72M | 495.96M | 524.94M | 501.41M | 522.68M | 436.74M |
| EBITDA | 151.39M | 150.89M | 199.57M | 180.14M | 207.76M | 97.26M |
| Net Income | 113.05M | 100.28M | 134.96M | 133.67M | 154.32M | 74.85M |
Balance Sheet | ||||||
| Total Assets | 16.38B | 14.41B | 14.42B | 14.11B | 14.50B | 13.81B |
| Cash, Cash Equivalents and Short-Term Investments | 301.61M | 1.40B | 1.17B | 1.36B | 2.83B | 2.14B |
| Total Debt | 613.07M | 444.70M | 642.66M | 924.32M | 391.72M | 411.84M |
| Total Liabilities | 14.53B | 12.81B | 12.87B | 12.62B | 12.92B | 12.27B |
| Stockholders Equity | 1.86B | 1.60B | 1.55B | 1.49B | 1.58B | 1.54B |
Cash Flow | ||||||
| Free Cash Flow | 60.92M | 125.36M | 84.33M | 171.11M | 187.94M | 128.18M |
| Operating Cash Flow | 70.25M | 127.67M | 92.89M | 175.43M | 205.46M | 140.44M |
| Investing Cash Flow | 311.13M | 174.97M | -239.68M | -917.42M | -232.97M | -560.58M |
| Financing Cash Flow | -329.45M | -136.52M | 129.69M | -397.90M | 570.49M | 1.10B |
Northwest Bancshares Technical Analysis
Positive
12.40
Price Trends
12.06
Positive
12.15
Positive
12.00
Positive
Market Momentum
-0.01
Positive
54.85
Neutral
61.69
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 12.4 is below the 20-day moving average (MA) of 12.42, above the 50-day MA of 12.06, and above the 200-day MA of 12.00, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 54.85 is Neutral, neither overbought nor oversold. The STOCH value of 61.69 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.67B | 9.42 | 21.81% | 0.27% | 7.80% | 19.38% | |
78 Outperform | $1.83B | 9.40 | 14.82% | 2.73% | 3.98% | 6.75% | |
78 Outperform | $1.78B | 14.05 | 16.42% | 2.65% | 6.09% | 11.49% | |
76 Outperform | $1.82B | 12.43 | 9.71% | 3.11% | 3.80% | -6.23% | |
69 Neutral | $1.81B | 13.90 | 6.55% | 6.48% | 15.86% | 16.50% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
NWBI
Northwest Bancshares
12.40
0.52
4.38%
CHCO
City Holding Company
123.74
10.89
9.65%
FCF
First Commonwealth
17.52
2.00
12.89%
CASH
Pathward Financial
74.93
2.40
3.30%
OFG
OFG Bancorp
41.66
1.56
3.89%
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.