Year to date EPS of $0.61 per diluted share, 15% growth from the prior year
Record total revenue of $168 million, 21% growth over prior year quarter
COLUMBUS, Ohio, Oct. 27, 2025 -- Northwest Bancshares, Inc., (the "Company"), (Nasdaq: NWBI) announced net income for the quarter ended September 30, 2025 of $3 million, or $0.02 per diluted share. This represents a decrease of $31 million compared to the prior quarter and same quarter last year, when net income was $34 million, or $0.26 per diluted share, in both periods. The annualized returns on average shareholders' equity and average assets for the quarter ended September 30, 2025 were 0.69% and 0.08% compared to 8.50% and 0.93% for the same quarter last year and 8.26% and 0.93% for the prior quarter.
Adjusted net income (non-GAAP) for the quarter ended September 30, 2025 was $41 million, or $0.29, per diluted share, which increased by $3 million from $38 million, or $0.30, per diluted share, in the prior quarter. This increase was primarily driven by a $17 million increase in net interest income from the addition of Penns Woods which was partly offset by an increase in adjusted noninterest expense of $11 million. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended September 30, 2025 were 8.89% and 1.01% compared to 9.36% and 1.06% for the prior quarter.
On July 25, 2025, the Company completed its acquisition of Penns Woods Bancorp, Inc. ("Penns Woods") and its results of operations are included in the Company's consolidated results since the date of acquisition. Therefore, the Company's third quarter and year to date 2025 results reflect increased levels of average balances, net interest income, and noninterest expense compared to the prior quarter and 2024 results. After purchase accounting fair value adjustments, the acquisition added $2.2 billion of total assets, including $1.8 billion of loans, $164 million of investments, of which $82 million were immediately sold, as well as $2.0 billion of total liabilities, primarily consisting of $1.6 billion in deposits. The Company recorded preliminary goodwill of $61 million and core deposit intangibles of $48 million related to the acquisition.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on November 18, 2025 to shareholders of record as of November 6, 2025. This is the 124th consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of September 30, 2025, this represents an annualized dividend yield of approximately 6.5%.
Louis J. Torchio, President and CEO, Northwest Bancshares commented, "I am pleased with our first quarter of performance as a combined company. The team completed merger integration activities on time, while staying focused on executing our strategy, and delivering on our commitment to sustainable, responsible, and profitable growth. The benefits of the additional scale from the merger are already evident. We delivered a record $168 million in revenue for the quarter, more than 25% year over year average commercial C&I loan growth continuing our strategic re-balancing, and drove a strong 3Q net interest margin of 3.65% as we maintained our loan yield and low-cost, high-quality, stable funding base."
"We are expanding our footprint through new branch openings in high growth markets, and have just broken ground on the first of three Columbus market financial centers scheduled for mid-2026 opening. We continue to enhance our capabilities, and provide personalized services and expertise to our customers and the growing number of communities we serve."
Balance Sheet Highlights
|
Dollars in thousands |
|
|
|
|
|
|
Change 3Q25 vs. |
||
|
|
3Q25 |
|
2Q25 |
|
3Q24 |
|
2Q25 |
|
3Q24 |
|
Average loans receivable |
$ 12,568,497 |
|
11,248,954 |
|
11,223,602 |
|
11.7 % |
|
12.0 % |
|
Average investments |
2,111,928 |
|
2,056,476 |
|
1,998,855 |
|
2.7 % |
|
5.7 % |
|
Average deposits |
13,296,651 |
|
12,154,001 |
|
12,096,811 |
|
9.4 % |
|
9.9 % |
|
Average borrowed funds |
347,357 |
|
208,342 |
|
220,677 |
|
66.7 % |
|
57.4 % |
- Average loans receivable increased $1.3 billion from the quarter ended September 30, 2024 and the quarter ended June 30, 2025. The increase from the prior year and the prior quarter was driven by the Penns Woods acquisition.
- Average investments grew $113 million from the quarter ended September 30, 2024 and $55 million from the quarter ended June 30, 2025. The growth in average investments was primarily due to the investments acquired as part of the Penns Woods acquisition during the third quarter.
- Average deposits grew $1.2 billion from the quarter ended September 30, 2024 and $1.1 billion from the quarter ended June 30, 2025. The growth in both periods was primarily driven by an increase in interest-bearing account balances primarily due to the addition of the Penns Woods deposit accounts.
- Average borrowings increased $127 million compared to the quarter end September 30, 2024 and $139 million compared to the quarter ended June 30, 2025. The increase in average borrowings from the prior year and prior quarter is attributable to the acquisition of long term borrowings from Penns Woods.
Income Statement Highlights
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Dollars in thousands |
|
|
|
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|
Change 3Q25 vs. |
|||
|
|
3Q25 |
|
2Q25 |
|
3Q24 |
|
2Q25 |
|
3Q24 |
|
Interest income |
$ 194,678 |
|
171,570 |
|
171,381 |
|
13.5 % |
|
13.6 % |
|
Interest expense |
58,704 |
|
52,126 |
|
60,079 |
|
12.6 % |
|
(2.3) % |
|
Net interest income |
$ 135,974 |
|
119,444 |
|
111,302 |
|
13.8 % |
|
22.2 % |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
3.65 % |
|
3.56 % |
|
3.33 % |
|
|
|
|
Compared to the quarter ended September 30, 2024, net interest income increased $25 million and net interest margin increased to 3.65% from 3.33% for the quarter ended September 30, 2024. This increase in net interest income resulted primarily from:
- A $23 million increase in interest income that was the result of higher average yields coupled with increase in average earning assets. The increase in average earnings assets was driven by the Penns Woods acquisition during the third quarter. The average yield on loans improved to 5.63% for the quarter ended September 30, 2025 from 5.57% for the quarter ended September 30, 2024. This increase was driven by a loan mix shift towards higher yielding commercial loans along with the accretion of loan fair value marks from the acquisition of $3 million during the quarter.
- A $1 million decrease in interest expense was the result of a decline in the cost of deposits partially off by an increase in the average balance of interest-bearing liabilities. The cost of interest-bearing liabilities decreased to 2.13% for the quarter ended September 30, 2025 from 2.39% for the quarter ended September 30, 2024.
Compared to the quarter ended June 30, 2025, net interest income increased $17 million and net interest margin increased to 3.65% for the quarter ended September 30, 2025 from 3.56%. This increase in net interest income resulted from the following:
- A $23 million increase in interest income driven by growth in the average loan balances and an increase on investments yields compared to the prior quarter. The average yield on loans increased to 5.63% from 5.55% and average investment yields increased to 2.81% from 2.69% for the quarter ended June 30, 2025. The increase was primarily driven by the Penns Woods acquisition and the accretion of loan fair value marks coupled with a continued shift in loan mix towards higher yielding commercial loans.
- A $7 million increase in interest expense driven by higher interest expense on both deposits and borrowings from the Penns Woods acquisition. Average cost of interest-bearing deposits increased compared to the prior quarter to 1.99% from 1.97% for the quarter ended June 30, 2025 while average cost of borrowings declined to 3.84% from 3.94% for the quarter ended June 30, 2025.
|
Dollars in thousands |
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|
Change 3Q25 vs. |
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|
3Q25 |
|
2Q25 |
|
3Q24 |
|
2Q25 |
|
3Q24 |
|
Provision for credit losses - loans |
$ 31,394 |
|
11,456 |
|
5,727 |
|
174.0 % |
|
448.2 % |
|
Provision for credit losses - unfunded commitments |
(189) |
|
(2,712) |
|
(852) |
|
(93.0) % |
|
(77.8) % |
|
Total provision for credit losses expense |
$ 31,205 |
|
8,744 |
|
4,875 |
|
256.9 % |
|
540.1 % |
The total provision for credit losses for the quarter ended September 30, 2025 was $31 million primarily driven by the Day 1 initial provision from the Penns Woods acquisition of $20.6 million. Excluding the Day 1 provision for credit losses from the acquisition, the provision for credit losses for the quarter ended September 30, 2025 was $10.5 million, which increased compared to the prior year and the prior quarter primarily due to an increase in net charge offs coupled with an increase due to individually assessed loans.
The Company saw an increase in classified loans to $527 million, or 4.07% of total loans, at September 30, 2025 from $320 million, or 2.83% of total loans, at September 30, 2024 and $518 million, or 4.57% of total loans, at June 30, 2025. This increase was driven by changes in our commercial real estate portfolio which increased $141 million from the prior year. The increase from the prior quarter was primarily due to classified loans acquired in the Penns Woods acquisition which were partially offset by improvements in our legacy loan portfolio.
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Dollars in thousands |
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|
|
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|
Change 3Q25 vs. |
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|
|
3Q25 |
|
2Q25 |
|
3Q24 |
|
2Q25 |
|
3Q24 |
|
Noninterest income: |
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|
|
|
|
|
|
|
|
|
Gain/(loss) on sale of investments |
$ 36 |
|
— |
|
— |
|
NA |
|
NA |
|
Gain on sale of SBA loans |
341 |
|
819 |
|
667 |
|
(58.4) % |
|
(48.9) % |
|
Service charges and fees |
16,911 |
|
15,797 |
|
15,932 |
|
7.1 % |
|
6.1 % |
|
Trust and other financial services income |
8,040 |
|
7,948 |
|
7,924 |
|
1.2 % |
|
1.5 % |
|
Gain on real estate owned, net |
132 |
|
258 |
|
105 |
|
(48.8) % |
|
25.7 % |
|
Income from bank-owned life insurance |
1,751 |
|
1,421 |
|
1,434 |
|
23.2 % |
|
22.1 % |
|
Mortgage banking income |
1,003 |
|
1,075 |
|
744 |
|
(6.7) % |
|
34.8 % |
|
Other operating income |
3,984 |
|
3,620 |
|
1,027 |
|
10.1 % |
|
287.9 % |
|
Total noninterest income |
$ 32,198 |
|
30,938 |
|
27,833 |
|
4.1 % |
|
15.7 % |
Noninterest income increased $4 million from the quarter ended September 30, 2024 driven by an increase in other operating income driven by a gain on equity method investments during the current quarter compared to a loss on equity method investments and the sale of a building during the prior year. Noninterest income increased by $1 million from the quarter ended June 30, 2025, due primarily to an increase in service charges and fees driven by deposit related fees based on customer activity partially related to the Penns Woods acquisition.
|
Dollars in thousands |
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|
|
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|
Change 3Q25 vs. |
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|
3Q25 |
|
2Q25 |
|
3Q24 |
|
2Q25 |
|
3Q24 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
Personnel expense |
$ 63,014 |
|
55,213 |
|
56,186 |
|
14.1 % |
|
12.2 % |
|
Non-personnel expense |
70,484 |
|
42,327 |
|
34,581 |
|
66.5 % |
|
103.8 % |
|
Total noninterest expense |
$ 133,498 |
|
97,540 |
|
90,767 |
|
36.9 % |
|
47.1 % |
Noninterest expense increased from the quarter ended September 30, 2024 due to a $7 million increase in personnel expenses driven by an increase in core compensation and benefits expense due to the addition of Penns Woods employees coupled with an increase in performance based incentive compensation expense. Additionally, non-personnel expense increased by $36 million due to $31 million of merger and restructuring expenses in the current period and an increase of $1 million in amortization of intangible expense related to the acquisition.
Compared to the quarter ended June 30, 2025, noninterest expense increased due to an increase in personnel expense of $8 million driven by the same factors discussed above. Non-personnel expense increased by $28 million due to an increase of $25 million in merger and restructuring expenses in the quarter ended September 30, 2025, an increase of $2 million in amortization of intangible expense related to the acquisition and an increase in processing expense of $2 million based on lower software spend in the prior quarter.
|
Dollars in thousands |
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|
|
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|
Change 3Q25 vs. |
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|
|
3Q25 |
|
2Q25 |
|
3Q24 |
|
2Q25 |
|
3Q24 |
|
Income before income taxes |
$ 3,469 |
|
44,098 |
|
43,493 |
|
(92.1) % |
|
(92.0) % |
|
Income tax expense |
302 |
|
10,423 |
|
9,875 |
|
(97.1) % |
|
(96.9) % |
|
Net income |
$ 3,167 |
|
33,675 |
|
33,618 |
|
(90.6) % |
|
(90.6) % |
The provision for income taxes decreased by $10 million from the quarter ended September 30, 2024 and the quarter ended June 30, 2025 primarily due to the quarterly change in income before income taxes.
Net income decreased from the quarter ended September 30, 2024 and the quarter ended June 30, 2025 due to the factors discussed above.
Headquartered in Columbus, Ohio, Northwest Bancshares, Inc. is the bank holding company of Northwest Bank. Founded in 1896 Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, as well as employee benefits and wealth management services. As of September 30, 2025, Northwest operated 151 full-service financial centers and ten free standing drive-up facilities in Pennsylvania, New York, Ohio and Indiana. Northwest Bancshares, Inc.'s common stock is listed on The Nasdaq Stock Market LLC ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Bank can be accessed online at www.northwest.com.
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