Loading...
•
Mar 31, 2024
Northwest Bancshares Q1 2024 Earnings Report
Announced first quarter earnings and declared quarterly dividend.
Key Takeaways
Northwest Bancshares reported a net income of $29 million, or $0.23 per diluted share, for the quarter ended March 31, 2024, a decrease compared to the same quarter last year. The company's Board of Directors declared a quarterly cash dividend of $0.20 per share.
Net income for Q1 2024 was $29 million, or $0.23 per diluted share.
This represents a decrease of $5 million, or 13%, compared to the same quarter last year.
The Board of Directors declared a quarterly cash dividend of $0.20 per share.
The company intends to reposition its securities portfolio to optimize its balance sheet.
Northwest Bancshares
Northwest Bancshares
Northwest Bancshares Revenue by Segment
Revenue by Segment
Loans Receivable Revenue
CapyFin.comMortgage-Backed Securities Revenue
CapyFin.comTaxable Investment Securities Revenue
CapyFin.comTax-Free Investment Securities Revenue
CapyFin.comFHLB Dividends Revenue
CapyFin.comInterest-Earning Deposits Revenue
CapyFin.com Forward Guidance
Northwest Bancshares intends to pursue a limited, strategic repositioning of the securities portfolio to optimize its balance sheet by liquidating lower-yielding securities in an effort to generate additional future earnings.
Positive Outlook
- Intends to pursue a limited, strategic repositioning of the securities portfolio.
- Aims to optimize its balance sheet by liquidating lower-yielding securities.
- Seeks to generate additional future earnings.
- Expects a yield pickup of 375-400 basis points from the repositioning.
- Will manage the payback period so that it will be approximately three years.
Challenges Ahead
- Securities losses recognized will be limited to $40 million, equivalent to approximately $30 million after tax.
- Characteristics of investment securities to be sold have an average yield less than 2.00% with a remaining maturity of greater than four years.
- Faces challenges in a higher interest rate environment.
- Experiences competitive pressure for liquidity.
- Potential challenges in the market.