#USA #Inc. #Columbus #Northwest Bancshares #NWBI #Penns Woods

Northwest Bancshares, Inc. Reports Strong Q1 2025 Earnings

On April 28, 2025, Northwest Bancshares, Inc. (NASDAQ: NWBI) announced exceptional financial results for the first quarter of 2025, achieving a net income of $43 million, translating to $0.34 per diluted share. This performance marks a substantial increase from last year's same quarter net income of $29 million, or $0.23 per diluted share. Moreover, it reflects an upward trend compared to the previous quarter's earnings of $33 million.

The company reported core metrics such as an annualized return on average shareholders' equity at 10.90% and an annualized return on average assets at 1.22%. These figures indicate a notable improvement from the previously reported 7.57% and 0.81% for the same quarter last year. In comparison to the last quarter, the returns were also higher, rising from 8.20% and 0.91%, respectively.

One key driver of this performance was the expanded net interest margin, which improved by 45 basis points to reach 3.87%, illustrating the bank's effectiveness in managing interest earnings and expenses. Additionally, total revenue surged by 19% year-over-year, underscoring strong growth dynamics.

Cost Management and Credit Quality

Northwest Bancshares has implemented strategic measures that resulted in a third consecutive quarter of reduced costs of funds, which has been critical in enhancing profitability. The company also maintains a stable credit quality profile, with nonperforming assets marginally balanced at 0.52% of total assets.

Among the highlights in terms of adjusted net income, Northwest reported $44 million, or $0.35 per diluted share for the first quarter. This marks an increase of $9 million from the previous quarter's adjusted figure of $35 million, driven by a surge in net interest income, particularly due to a substantial recovery in non-accrual interest income.

Future Outlook and Dividends

The Board of Directors declared a quarterly cash dividend of $0.20 per share, which is expected to be paid out on May 20, 2025, to shareholders on record as of May 8, 2025. This dividend marks the 122nd consecutive quarter in which the company has returned cash to shareholders, reflecting an annualized dividend yield of approximately 6.7% based on its stock market value at the end of March.

Louis J. Torchio, President and CEO of Northwest Bancshares, expressed pride in the financial institution's performance, calling it one of the strongest first-quarter results in its history. He attributed this success to the team's dedication to operational excellence, stringent cost control, and effective risk management strategies.

Looking ahead, Torchio highlighted ongoing efforts to integrate and enhance capabilities following the proposed merger with Penns Woods Bancorp, aiming for completion by late July 2025. Despite the ongoing economic uncertainties, Torchio remains optimistic about Northwest's strategic direction, emphasizing a focus on core customer service, sustainable growth, and maintaining financial stability.

Financial Highlights

Net Income: $43 million (Q1 2025) vs. $29 million (Q1 2024)
Diluted Earnings per Share: $0.34 (Q1 2025) vs. $0.23 (Q1 2024)
Net Interest Margin: 3.87% (up from 3.10% last year)
Nonperforming Assets: Steady at 0.52% of total assets
* Annualized Return on Average Equity: 10.90%

As Northwest Bancshares looks to the future, they remain committed to leveraging operational strengths and market opportunities while navigating the evolving landscape of the financial services sector.