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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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