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Sep 30
Northwest Bancshares Q3 2025 Earnings Report
Northwest Bancshares reported Q3 2025 GAAP net income of $3 million, with adjusted earnings boosted by the Penns Woods acquisition.
Key Takeaways
Northwest Bancshares posted GAAP net income of $3 million ($0.02 per share) in Q3 2025, significantly lower than prior quarters due to elevated merger-related expenses. Adjusted net income was $41 million ($0.29 per share), benefiting from the acquisition of Penns Woods Bancorp, which contributed to record revenue of $168 million and improved net interest income and margin.
GAAP EPS declined to $0.02 due to $31 million in merger-related expenses
Adjusted EPS came in at $0.29, up from $0.26 YoY
Net interest income rose 22% YoY to $136 million with a 3.65% net interest margin
Provision for credit losses increased significantly, driven by Penns Woods acquisition
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.comGain on Sale of SBA Loans Revenue
CapyFin.comService Charges & Fees Revenue
CapyFin.comTrust & Other Financial Services Revenue
CapyFin.comGain on Real Estate Owned, Net Revenue
CapyFin.comIncome from BOLI Revenue
CapyFin.comMortgage Banking Income Revenue
CapyFin.comOther Operating Income Revenue
CapyFin.com Forward Guidance
Management expressed optimism about the combined company's scale following the Penns Woods acquisition but highlighted caution around credit quality and integration costs.
Positive Outlook
- Record total revenue of $168 million driven by Penns Woods acquisition
- Net interest margin improved to 3.65%
- Adjusted EPS of $0.29 exceeded GAAP results by a wide margin
- Loan yields increased with favorable shift toward higher-yield commercial loans
- Tangible book value remained solid at $9.37
Challenges Ahead
- GAAP EPS dropped to $0.02 due to $31 million in merger-related costs
- Provision for credit losses surged to $31 million, largely from Day 1 purchase accounting
- Efficiency ratio elevated to 79.38% including merger costs
- Nonperforming loans increased to 1.00% of total loans
- Return on assets and equity dropped sharply on a GAAP basis