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Northwest Bancshares
(NASDAQ:NWBI)
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Rating:70Outperform
Price Target:
$17.50
â–²(14.08% Upside)
Action:Reiterated
Date:08/18/26
NWBI scores well mainly due to stable underlying fundamentals with strong cash generation, a constructive technical uptrend (price above key moving averages with positive MACD), and supportive income valuation (5.08% dividend yield with ~15x P/E). The score is moderated by financial and credit-risk watch items highlighted in the data: TTM revenue contraction, increased leverage versus prior years, and signs of credit normalization (higher classified loans and higher 90+ day delinquencies).
Positive Factors
Strong Cash Generation
Healthy operating and free cash flow supports dividends, debt reduction, technology investment and organic growth. FCF closely tracking net income also indicates solid earnings quality and provides flexibility through changing credit and funding conditions.
Negative Factors
Rising Credit Risk
Higher classified loans and longer-duration delinquencies signal credit normalization, particularly in health care and nursing homes. Further deterioration could increase provisions and charge-offs, reducing earnings and capital generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Healthy operating and free cash flow supports dividends, debt reduction, technology investment and organic growth. FCF closely tracking net income also indicates solid earnings quality and provides flexibility through changing credit and funding conditions.
Read all positive factors
Northwest Bancshares (NWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.29B
Dividend Yield5.12%
Average Volume (3M)924.26K
Price to Earnings (P/E)14.8
Beta (1Y)0.60
Revenue Growth14.54%
EPS Growth-6.93%
CountryUS
Employees2,169
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.05
Shares Outstanding146,459,120
10 Day Avg. Volume841,318
30 Day Avg. Volume924,259
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)0.93
Price to Sales (P/S)2.01
P/FCF Ratio12.42
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.25Price Target Upside5.93% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.41
Revenue Forecast (FY)$726.50M
Northwest Bancshares Business Overview & Revenue Model
Company Description
Northwest Bancshares, Inc. serves as the parent company for Northwest Bank, a state-chartered savings institution offering a full spectrum of banking solutions for both personal and business customers. Its deposit products encompass checking, savi...
How the Company Makes Money
NWBI primarily earns money through its banking subsidiary by (1) generating net interest income and (2) earning noninterest income, while (3) incurring interest and operating expenses that determine overall profitability. Net interest income is ty...
Northwest Bancshares Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call delivered strong financial results and momentum: record net income and EPS, robust revenue and loan growth (notably C&I), improved efficiency and NIM expansion, successful integration of the Penns Woods acquisition with faster-than-expected tangible book earn-back, and continued investments in branches, talent and fee businesses. Headwinds include elevated CRE and mortgage runoff, an increase in classified loans (notably in health care), modest uptick in longer-duration delinquencies, expense headwinds from growth investments, and continued deposit-market competitiveness. Management provided steady guidance for NIM, revenue, and reserves while prioritizing extinguishing subordinated debt before initiating buybacks. Overall, positives materially outweigh the challenges, with management expressing confidence in execution and outlook for the remainder of 2026.Positive Updates
Record Net Income and EPS
Net income of $54.0 million in Q2 2026, a record for the company, representing +59% year-over-year growth; diluted GAAP EPS of $0.36 (record) and adjusted EPS of $0.37, +$0.02 QoQ.
Negative Updates
CRE and Mortgage Runoff
Elevated runoff in residential mortgage and legacy commercial real estate (CRE) portfolios continued to offset new CRE originations; company expects CRE to be largely flat with some continued runoff in the second half of the year.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Net Income and EPS
Net income of $54.0 million in Q2 2026, a record for the company, representing +59% year-over-year growth; diluted GAAP EPS of $0.36 (record) and adjusted EPS of $0.37, +$0.02 QoQ.
Read all positive updates
Company Guidance
Guidance for full‑year 2026: loan and deposit growth outlook remains unchanged (previously characterized as low‑single‑digit), total revenue is expected to be in the middle of the stated range, net interest margin is targeted at 373–375 basis points assuming no change in the Fed funds rate (management reiterated comfort around a ~3.75% exit), noninterest income is expected at the high end of its range, noninterest expense in the middle of its range, and net charge‑offs are expected in the low‑to‑middle of the guided range; the effective tax rate is expected to drift to about 24% as earnings strengthen. Management also highlighted a potential near‑term extinguishment of subordinated debt (which would add ~2 bps to NIM), said regulatory capital ratios would remain strong and above well‑capitalized levels, reiterated confidence in achieving crossover tangible book earn‑back by year‑end 2026, and emphasized continued positive operating leverage and an improving adjusted efficiency ratio.Northwest Bancshares Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 843.55M | 876.99M | 754.09M | 700.05M | 557.84M | 534.14M |
| Gross Profit | 558.97M | 599.13M | 495.96M | 524.94M | 501.41M | 522.68M |
| EBITDA | 133.06M | 164.91M | 150.89M | 199.57M | 180.14M | 207.76M |
| Net Income | 152.96M | 126.01M | 100.28M | 134.96M | 133.67M | 154.32M |
Balance Sheet | ||||||
| Total Assets | 17.21B | 16.77B | 14.41B | 14.42B | 14.11B | 14.50B |
| Cash, Cash Equivalents and Short-Term Investments | 248.50M | 1.82B | 1.40B | 1.17B | 1.36B | 2.83B |
| Total Debt | 857.10M | 446.28M | 444.70M | 642.66M | 924.32M | 391.72M |
| Total Liabilities | 15.29B | 14.88B | 12.81B | 12.87B | 12.62B | 12.92B |
| Stockholders Equity | 1.93B | 1.89B | 1.60B | 1.55B | 1.49B | 1.58B |
Cash Flow | ||||||
| Free Cash Flow | 137.64M | 141.78M | 125.36M | 84.33M | 171.11M | 187.94M |
| Operating Cash Flow | 153.68M | 153.41M | 127.67M | 92.89M | 175.43M | 205.46M |
| Investing Cash Flow | -419.18M | -127.35M | 174.97M | -239.68M | -917.42M | -232.97M |
| Financing Cash Flow | 222.68M | -80.79M | -136.52M | 129.69M | -397.90M | 570.49M |
Northwest Bancshares Technical Analysis
Positive
15.34
Price Trends
15.32
Positive
14.53
Positive
13.32
Positive
Market Momentum
0.02
Positive
58.36
Neutral
79.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWBI, the sentiment is Positive. The current price of 15.34 is below the 20-day moving average (MA) of 15.47, above the 50-day MA of 15.32, and above the 200-day MA of 13.32, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 79.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWBI.
Northwest Bancshares Risk Analysis
Northwest Bancshares disclosed 48 risk factors in its most recent earnings report. Northwest Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Northwest Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.04B | 15.93 | 16.41% | 2.39% | 3.23% | 10.13% | |
78 Outperform | $2.25B | 10.60 | 15.92% | 2.44% | 4.56% | 19.51% | |
73 Outperform | $2.16B | 13.01 | 10.83% | 2.58% | 4.87% | 25.01% | |
70 Outperform | $2.29B | 14.84 | 8.07% | 5.12% | 14.54% | -6.93% | |
70 Outperform | $1.73B | 10.37 | 20.58% | 0.24% | 1.95% | 6.07% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
NWBI
Northwest Bancshares
15.62
3.61
30.03%
CHCO
City Holding Company
145.57
19.90
15.84%
FCF
First Commonwealth
21.34
4.11
23.82%
CASH
Pathward Financial
83.19
6.51
8.49%
OFG
OFG Bancorp
53.22
10.19
23.67%
Northwest Bancshares Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Northwest Bancshares Approves New RSU Grant for CEO
Positive
Jul 24, 2026
Northwest Bancshares’ board has moved to strengthen long-term incentives for president and chief executive officer Lou Torchio, who has led the bank since August 2022, by awarding him a substantial package of restricted stock units designed ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Northwest Bancshares Shareholders Approve New Equity Incentive Plans
Positive
May 26, 2026
On May 20, 2026, shareholders of Northwest Bancshares, Inc. approved two key capital and compensation programs: the 2026 Equity Incentive Plan, enabling stock-based and other incentive awards for officers, employees, directors and consultants, and...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.