Northwest Bancshares Q3 net income rises on strong NII

Overview

• Northwest Bancshares Q3 2025 GAAP net income falls to $3 mln from $34 mln last year

• Record Q3 revenue of $168 mln, up 21% yr/yr due to Penns Woods acquisition

• Adjusted net income for Q3 rises to $41 mln, driven by $17 mln net interest income increase

Outlook

• Company plans to expand footprint with new branches in high-growth markets

• Company did not provide specific financial guidance for future quarters

Result Drivers

• PENNS WOODS ACQUISITION - Acquisition significantly increased net interest income and average balances, driving revenue growth

• HIGHER NONINTEREST EXPENSE - Merger and restructuring costs led to increased noninterest expenses

• NET INTEREST MARGIN IMPROVEMENT - Driven by shift to higher-yielding commercial loans and accretion of loan fair value marks

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Northwest Bancshares Inc is $13.50, about 6.9% above its October 24 closing price of $12.57

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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