Northwest Bancshares, Inc. Announces Second Quarter 2025 net income of $34 million, or $0.26 per diluted share
Total revenue grew 54% and net interest income increased 12% over prior year quarter
Successful completion and systems conversion of Penns Woods merger
Strong 2Q net interest margin at 3.56% as we continue to manage our funding costs and maintain our loan yield
Noninterest income grew 9% over prior quarter
2Q25 adjusted (non-GAAP) net income of $38 million, or $0.30 per diluted share
Commercial C&I lending momentum continues with 19% growth in the last year
COLUMBUS, Ohio, July 29, 2025 /PRNewswire/ -- Northwest Bancshares, Inc., (the "Company"), (NASDAQ:NWBI) announced net income for the quarter ended June 30, 2025 of $34 million, or $0.26 per diluted share. This represents an increase of $29 million compared to the same quarter last year, when net income was $5 million, or $0.04 per diluted share, and a decrease of $10 million compared to the prior quarter, when net income was $43 million, or $0.34 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended June 30, 2025 were 8.26% and 0.93% compared to 1.24% and 0.13% for the same quarter last year and 10.90% and 1.22% from the prior quarter.
Adjusted net income (non-GAAP) for the quarter ended June 30, 2025 was $38 million, or $0.30, per diluted share, which decreased by $6 million from $44 million, or $0.35, per diluted share, in the prior quarter. This decrease was primarily driven by an $8 million decrease in net interest income impacted by a large non-accrual interest income recovery in the prior quarter. The adjusted annualized returns on average shareholders' equity (non-GAAP) and average assets (non-GAAP) for the quarter ended June 30, 2025 were 9.36% and 1.06% compared to 11.11% and 1.25% for the prior quarter.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share payable on August 19, 2025 to shareholders of record as of August 8, 2025. This is the 123rd consecutive quarter in which the Company has paid a cash dividend. Based on the market value of the Company's common stock as of June 30, 2025, this represents an annualized dividend yield of approximately 6.3%.
Louis J. Torchio, President and CEO, Northwest Bancshares commented, "I am pleased with our performance in the second quarter of 2025, as we continue to execute our strategy, delivering on our commitment to sustainable, responsible and profitable growth. Overall, we built on our strong start to the year, with net interest margin expansion and revenue growth, and we continued to exercise prudent expense control, resulting in further improvements in our efficiency ratio.
"Despite a still unpredictable operating environment, I am confident and excited about Northwest's prospects for the year ahead. Although we are always evaluating acquisition opportunities for additional scale and strategic benefits, with the Penns Woods acquisition and conversion just behind us, we are primarily focused on optimizing the operations and financial performance of the newly combined entity. We continue to enhance our capabilities, expand our footprint thru new branch openings, and provide personalized services and expertise to our customers and communities we serve."
Dollars in thousands
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Average loans receivable
$ 11,248,954
11,176,516
11,368,749
0.6 %
(1.1) %
Average investments
2,056,476
2,037,227
2,021,347
0.9 %
1.7 %
Average deposits
12,154,001
12,088,371
12,086,362
0.5 %
0.6 %
Average borrowed funds
208,342
224,122
323,191
(7.0) %
(35.5) %
Average loans receivable decreased $120 million from the quarter ended June 30, 2024 driven by our personal banking portfolio, which decreased by $265 million as cash flows from this portfolio were reinvested in our commercial portfolios. This was partially offset by growth in our commercial banking portfolio, which grew by $145 million in total, including a $332 million increase in our commercial and industrial portfolio as we have continued to build-out our commercial lending verticals. Compared to the first quarter of 2025, average loans receivable increased by $72 million with growth in our personal banking portfolio of $66 million.
Average investments grew $35 million from the quarter ended June 30, 2024 and $19 million from the quarter ended March 31, 2025. The growth in average investments was primarily due to an increase in net portfolio purchases during the quarter to reach a normalized percentage of total assets for liquidity purposes.
Average deposits grew $68 million from the quarter ended June 30, 2024 and $66 million from the quarter ended March 31, 2025. The growth in both periods was primarily driven by an increase in money market, interest-bearing checking and saving account balances partly due to customers shifting funds to these competitively priced products as their time deposits matured. These increases were partially offset by a decrease in brokered time deposit balances as growth in core deposits provided sufficient funding.
Average borrowings decreased $115 million compared to the quarter end June 30, 2024 and decreased $16 million compared to the quarter ended March 31, 2025. The decrease in average borrowings from the prior year is primarily attributable to the strategic pay-down of wholesale borrowings with the proceeds from our investment portfolio restructuring in the second quarter of 2024.
Income Statement Highlights
Dollars in thousands
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Interest income
$ 171,570
180,595
166,854
(5.0) %
2.8 %
Interest expense
52,126
52,777
60,013
(1.2) %
(13.1) %
Net interest income
$ 119,444
127,818
106,841
(6.6) %
11.8 %
Net interest margin
3.56 %
3.87 %
3.20 %
Compared to the quarter ended June 30, 2024, net interest income increased $13 million and net interest margin increased to 3.56% from 3.20% for the quarter ended June 30, 2024. This increase in net interest income resulted primarily from:
A $5 million increase in interest income that was the result of higher average yields, partly offset by lower average earning assets. The average yield on loans improved to 5.55% for the quarter ended June 30, 2025 from 5.47% for the quarter ended June 30, 2024. This increase was driven by a loan mix shift towards higher yielding commercial loans. The average yields on investments increased due to a portfolio restructuring completed in the second quarter of 2024.
A $8 million decrease in interest expense was the result of a decline in the cost of deposits in conjunction with a decrease in the average balance of borrowings. The cost of interest-bearing liabilities decreased to 2.09% for the quarter ended June 30, 2025 from 2.40% for the quarter ended June 30, 2024.
Compared to the quarter ended March 31, 2025, net interest income decreased $8 million and net interest margin decreased to 3.56% for the quarter ended June 30, 2025 from 3.87%. This decrease in net interest income resulted from the following:
A $9 million decrease in interest income driven by an interest recovery of $13.1 million on a non-accrual commercial loan payoff during the quarter ended March 31, 2025. This was partially offset by higher growth in the average loan balances and an increase on investments yields compared to the prior quarter. The average yield on loans decreased to 5.55% from 6.00% and average investment yields increased to 2.69% from 2.62% for the quarter ended March 31, 2025. The decrease in loan yields was impacted by the non-accrual interest recoveries in the prior quarter. Excluding this interest recovery, the yield on loans for the quarter ended March 31, 2025 was 5.52% and the net interest margin was 3.48%.
A $1 million decrease in interest expense driven by lower interest expense on deposits as average cost declined compared to the prior quarter to 1.97% from 2.02% for the quarter ended March 31, 2025.
Dollars in thousands
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Provision for credit losses - loans
$ 11,456
8,256
2,169
38.8 %
428.2 %
Provision for credit losses - unfunded commitments
(2,712)
(345)
(2,539)
686.1 %
6.8 %
Total provision for credit losses expense
$ 8,744
7,911
(370)
10.5 %
(2463.2) %
The total provision for credit losses for the quarter ended June 30, 2025 was $9 million primarily driven by downgrades and individual assessments within our commercial real estate portfolio offset by changes in the economic forecasts coupled with a decline in our reserves for unfunded commitments in the current period. This decline is based on the timing of origination and funding of commercial construction loans and lines of credit.
The Company saw an increase in classified loans to $518 million, or 4.57% of total loans, at June 30, 2025 from $257 million, or 2.26% of total loans, at June 30, 2024 and $279 million, or 2.49% of total loans, at March 31, 2025. This increase was driven by changes in our commercial real estate portfolio which increased $195 million.
Dollars in thousands
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Noninterest income:
Loss on sale of investments
$ ,
—
(39,413)
NA
NA
Gain on sale of SBA loans
819
1,238
1,457
(33.8) %
(43.8) %
Service charges and fees
15,797
14,987
15,527
5.4 %
1.7 %
Trust and other financial services income
7,948
7,910
7,566
0.5 %
5.0 %
Gain on real estate owned, net
258
84
487
207.1 %
(47.0) %
Income from bank-owned life insurance
1,421
1,331
1,371
6.8 %
3.6 %
Mortgage banking income
1,075
696
901
54.5 %
19.3 %
Other operating income
3,620
2,109
3,255
71.6 %
11.2 %
Total noninterest income
$ 30,938
28,355
(8,849)
9.1 %
(449.6) %
Noninterest income increased $40 million from the quarter ended June 30, 2024 driven by a $39 million loss on the sale of investment securities in the prior year quarter. Excluding the loss on sale of securities, noninterest income was flat from the second quarter of 2024. Noninterest income increased by $3 million from the quarter ended March 31, 2025, due primarily to an increase in other operating income, driven by a gain on equity method investments, coupled with an increase in service charges and fees driven by commercial loan fees and deposit related fees based on customer activity.
Dollars in thousands
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Noninterest expense:
Personnel expense
$ 55,213
54,540
53,531
1.2 %
3.1 %
Non-personnel expense
42,327
37,197
38,889
13.8 %
8.8 %
Total noninterest expense
$ 97,540
91,737
92,420
6.3 %
5.5 %
Noninterest expense increased from the quarter ended June 30, 2024 due to a $2 million increase in personnel expenses driven by an increase in core and incentive compensation coupled with an increase in non-personnel expense of $3 million due to merger and restructuring expenses in the current period.
Compared to the quarter ended March 31, 2025, noninterest expense increased due to an increase in non-personnel expense of $5 million due to merger and restructuring expenses in the quarter ended June 30, 2025.
Dollars in thousands
Change 2Q25 vs.
2Q25
1Q25
2Q24
1Q25
2Q24
Income before income taxes
$ 44,098
56,525
5,942
(22.0) %
642.1 %
Income tax expense
10,423
13,067
1,195
(20.2) %
772.2 %
Net income
$ 33,675
43,458
4,747
(22.5) %
609.4 %
The provision for income taxes increased by $9 million from the quarter ended June 30, 2024 and decreased $3 million from the quarter ended March 31, 2025 primarily due to the quarterly change in income before income taxes.
Net income increased from the quarter ended June 30, 2024 and decreased from the quarter ended March 31, 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 June 30, 2025, Northwest operated 131 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.
Investor Contact: Michael Perry, Corporate Development & Strategy (814) 726-2140Media Contact: Ian Bailey, External Communications (380) 400-2423
# # #
Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitation, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies or instability or breakdown in the financial services sector; (3) general economic conditions including inflation, an increase in non-performing loans or changes in monetary, fiscal, regulatory and tariff policies of the U.S. government; (4) changes in legislation or regulatory requirements, including as part of the regulatory reform agenda of the Trump administration; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses or the ability to complete sales transactions; (7) increased risk associated with commercial real-estate and business loans; (8) changes in liquidity, including the size and composition of our deposit portfolio; (9) reduction in the value of our goodwill and other intangible assets; and (10) the effect of any pandemic, war or act of terrorism. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release, except as required by law.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(dollars in thousands, except per share amounts)
June 30,2025
December 31,2024
June 30,2024
Assets
Cash and cash equivalents
$ 267,075
288,378
228,433
Marketable securities available-for-sale (amortized cost of $1,341,651, $1,278,665 and $1,202,354, respectively)
1,194,883
1,108,944
1,029,191
Marketable securities held-to-maturity (fair value of $628,936, $637,948 and $663,292, respectively)
719,561
750,586
784,208
Total cash and cash equivalents and marketable securities
2,181,519
2,147,908
2,041,832
Loans held-for-sale
13,104
76,331
9,445
Residential mortgage loans
3,052,126
3,178,269
3,315,303
Home equity loans
1,157,520
1,149,396
1,180,486
Consumer loans
2,211,275
1,995,085
2,080,058
Commercial real estate loans
2,782,404
2,849,862
3,026,958
Commercial loans
2,138,499
2,007,402
1,742,114
Total loans receivable
11,341,824
11,180,014
11,354,364
Allowance for credit losses
(129,159)
(116,819)
(125,070)
Loans receivable, net
11,212,665
11,063,195
11,229,294
FHLB stock, at cost
17,809
21,006
20,842
Accrued interest receivable
46,987
46,356
48,739
Real estate owned, net
48
35
74
Premises and equipment, net
123,402
124,246
128,208
Bank-owned life insurance
255,708
253,137
253,890
Goodwill
380,997
380,997
380,997
Other intangible assets, net
1,897
2,837
3,954
Other assets
250,971
292,176
277,723
Total assets
$ 14,485,107
14,408,224
14,385,553
Liabilities and shareholders' equity
Liabilities
Noninterest-bearing demand deposits
$ 2,643,099
2,621,415
2,581,699
Interest-bearing demand deposits
2,622,695
2,666,504
2,565,750
Money market deposit accounts
2,153,078
2,007,739
1,964,841
Savings deposits
2,211,509
2,171,251
2,148,727
Time deposits
2,570,648
2,677,645
2,826,362
Total deposits
12,201,029
12,144,554
12,087,379
Borrowed funds
198,008
200,331
242,363
Subordinated debt
114,713
114,538
114,364
Junior subordinated debentures
129,964
129,834
129,703
Advances by borrowers for taxes and insurance
47,865
42,042
52,271
Accrued interest payable
7,729
6,935
21,423
Other liabilities
143,731
173,134
181,452
Total liabilities
12,843,039
12,811,368
12,828,955
Shareholders' equity
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares issued
—
—
—
Common stock, $0.01 par value: 500,000,000 shares authorized, 127,842,403, 127,508,003 and
127,307,997 shares issued and outstanding, respectively
1,278
1,275
1,273
Additional paid-in capital
1,037,615
1,033,385
1,027,703
Retained earnings
699,049
673,110
657,706
Accumulated other comprehensive loss
(95,874)
(110,914)
(130,084)
Total shareholders' equity
1,642,068
1,596,856
1,556,598
Total liabilities and shareholders' equity
$ 14,485,107
14,408,224
14,385,553
Equity to assets
11.34 %
11.08 %
10.82 %
Tangible common equity to tangible assets *
8.93 %
8.65 %
8.37 %
Book value per share
$ 12.84
12.52
12.23
Tangible book value per share *
$ 9.85
9.51
9.20
Closing market price per share
$ 12.78
13.19
11.55
Full time equivalent employees
1,998
1,956
1,991
Number of banking offices
141
141
139
*
Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)
Quarter ended
June 30,2025
March 31,2025
December 31,2024
September 30,2024
June 30,2024
Interest income:
Loans receivable
$ 154,914
164,638
155,838
156,413
153,954
Mortgage-backed securities
12,154
11,730
11,515
10,908
9,426
Taxable investment securities
999
933
910
842
728
Tax-free investment securities
512
512
515
512
457
FHLB stock dividends
318
366
392
394
498
Interest-earning deposits
2,673
2,416
1,552
2,312
1,791
Total interest income
171,570
180,595
170,722
171,381
166,854
Interest expense:
Deposits
46,826
47,325
50,854
54,198
52,754
Borrowed funds
5,300
5,452
5,671
5,881
7,259
Total interest expense
52,126
52,777
56,525
60,079
60,013
Net interest income
119,444
127,818
114,197
111,302
106,841
Provision for credit losses - loans
11,456
8,256
15,549
5,727
2,169
Provision for credit losses - unfunded commitments
(2,712)
(345)
1,016
(852)
(2,539)
Net interest income after provision for credit losses
110,700
119,907
97,632
106,427
107,211
Noninterest income:
Loss on sale of investments
—
—
—
—
(39,413)
Gain on sale of SBA loans
819
1,238
822
667
1,457
Service charges and fees
15,797
14,987
15,975
15,932
15,527
Trust and other financial services income
7,948
7,910
7,485
7,924
7,566
Gain on real estate owned, net
258
84
238
105
487
Income from bank-owned life insurance
1,421
1,331
2,020
1,434
1,371
Mortgage banking income
1,075
696
224
744
901
Other operating income
3,620
2,109
13,299
1,027
3,255
Total noninterest income/(loss)
30,938
28,355
40,063
27,833
(8,849)
Noninterest expense:
Compensation and employee benefits
55,213
54,540
53,198
56,186
53,531
Premises and occupancy costs
7,122
8,400
7,263
7,115
7,464
Office operations
2,910
2,977
3,036
2,811
3,819
Collections expense
838
328
905
474
406
Processing expenses
12,973
13,990
15,361
14,570
14,695
Marketing expenses
3,018
1,880
2,327
2,004
2,410
Federal deposit insurance premiums
2,296
2,328
2,949
2,763
2,865
Professional services
3,990
2,756
3,788
3,302
3,728
Amortization of intangible assets
436
504
526
590
635
Merger, asset disposition and restructuring expense
6,244
1,123
2,850
43
1,915
Other expenses
2,500
2,911
3,123
909
952
Total noninterest expense
97,540
91,737
95,326
90,767
92,420
Income before income taxes
44,098
56,525
42,369
43,493
5,942
Income tax expense
10,423
13,067
9,619
9,875
1,195
Net income
$ 33,675
43,458
32,750
33,618
4,747
Basic earnings per share
$ 0.26
0.34
0.26
0.26
0.04
Diluted earnings per share
$ 0.26
0.34
0.26
0.26
0.04
Weighted average common shares outstanding - diluted
128,114,509
128,299,013
127,968,910
127,714,511
127,199,039
Annualized return on average equity
8.26 %
10.90 %
8.20 %
8.50 %
1.24 %
Annualized return on average assets
0.93 %
1.22 %
0.91 %
0.93 %
0.13 %
Annualized return on average tangible common equity *
10.78 %
14.29 %
10.81 %
11.26 %
1.65 %
Efficiency ratio
64.86 %
58.74 %
61.80 %
65.24 %
94.31 %
Efficiency ratio, excluding certain items **
60.42 %
57.70 %
59.61 %
64.78 %
65.41 %
*
Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
**
Excludes loss on sale of investments, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
Northwest Bancshares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
(dollars in thousands, except per share amounts)
Six months ended June 30,
2025
2024
Interest income:
Loans receivable
$ 319,552
303,525
Mortgage-backed securities
23,884
17,370
Taxable investment securities
1,932
1,522
Tax-free investment securities
1,024
948
FHLB stock dividends
684
1,105
Interest-earning deposits
5,089
2,623
Total interest income
352,165
327,093
Interest expense:
Deposits
94,151
100,440
Borrowed funds
10,752
16,574
Total interest expense
104,903
117,014
Net interest income
247,262
210,079
Provision for credit losses - loans
19,712
6,403
Provision for credit losses - unfunded commitments
(3,057)
(3,338)
Net interest income after provision for credit losses
230,607
207,014
Noninterest income:
Loss on sale of investments
—
(39,413)
Gain on sale of SBA loans
2,057
2,330
Service charges and fees
30,784
31,050
Trust and other financial services income
15,858
14,693
Gain on real estate owned, net
342
544
Income from bank-owned life insurance
2,752
2,873
Mortgage banking income
1,771
1,353
Other operating income
5,729
5,684
Total noninterest income
59,293
19,114
Noninterest expense:
Compensation and employee benefits
109,753
105,071
Premises and occupancy costs
15,522
15,091
Office operations
5,887
6,586
Collections expense
1,166
742
Processing expenses
26,963
29,420
Marketing expenses
4,898
4,559
Federal deposit insurance premiums
4,624
5,888
Professional services
6,746
7,793
Amortization of intangible assets
940
1,336
Merger, asset disposition and restructuring expense
7,367
2,870
Other expenses
5,411
3,088
Total noninterest expense
189,277
182,444
Income before income taxes
100,623
43,684
Income tax expense
23,490
9,774
Net income
$ 77,133
33,910
Basic earnings per share
$ 0.60
0.27
Diluted earnings per share
$ 0.60
0.27
Weighted average common shares outstanding - diluted
128,347,141
127,345,379
Annualized return on average equity
9.56 %
4.41 %
Annualized return on average assets
1.08 %
0.47 %
Annualized return on tangible common equity *
12.51 %
5.88 %
Efficiency ratio
61.74 %
79.60 %
Efficiency ratio, excluding certain items **
59.03 %
66.36 %
*
Excludes goodwill and other intangible assets (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
**
Excludes loss on sale of investments, amortization of intangible assets and merger, asset disposition and restructuring expenses (non-GAAP). See reconciliation of non-GAAP financial measures for additional information relating to these items.
Northwest Bancshares, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited) *
(dollars in thousands, except per share amounts)
Quarter ended
Six months ended June 30,
June 30,2025
March 31,2025
June 30,2024
2025
2024
Reconciliation of net income to adjusted net income:
Net income (GAAP)
$ 33,675
43,458
4,747
77,133
33,910
Non-GAAP adjustments
Add: merger, asset disposition and restructuring expense
6,244
1,123
1,915
7,367
2,870
Add: loss on the sale of investments
—
—
39,413
—
39,413
Less: tax benefit of non-GAAP adjustments
(1,748)
(314)
(11,572)
(2,063)
(11,839)
Adjusted net income (non-GAAP)
$ 38,171
44,267
34,503
82,437
64,354
