Northwest Bancshares, Inc. (NWBI) Bundle
A Brief History of Northwest Bancshares, Inc.
Northwest Bancshares, Inc. (NASDAQ: NWBI) has shown significant growth and resilience throughout its operational history, particularly as of 2024. The company, which operates through its wholly-owned subsidiary, Northwest Bank, provides a range of financial services including commercial and consumer banking, as well as wealth management.
Financial Performance Overview
As of September 30, 2024, Northwest Bancshares reported a net income of $33.6 million, a substantial increase from $4.7 million in the previous quarter. This surge in profitability is attributed to a variety of factors, including improved net interest income and effective management of noninterest expenses.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income ($ millions) | 33.6 | 4.7 | 39.2 |
| Net Interest Income ($ millions) | 111.3 | 106.8 | 108.4 |
| Earnings per Share (Diluted) | 0.26 | 0.04 | 0.31 |
| Return on Average Equity (%) | 8.50 | 1.24 | 10.27 |
| Efficiency Ratio (%) | 65.24 | 94.31 | 62.88 |
Asset Growth
As of September 30, 2024, total assets for Northwest Bancshares stood at approximately $14.35 billion, reflecting a slight decrease from $14.42 billion in the previous quarter. The company has strategically focused on enhancing its loan portfolio, particularly in commercial lending.
| Asset Category | Q3 2024 ($ millions) | Q2 2024 ($ millions) | Q3 2023 ($ millions) |
|---|---|---|---|
| Total Loans Receivable | 11,304.6 | 11,414.8 | 11,310.3 |
| Mortgage-Backed Securities | 1,735.7 | 1,734.1 | 1,781.0 |
| Investment Securities | 263.1 | 287.3 | 336.1 |
| Total Assets | 14,354.3 | 14,419.1 | 14,362.2 |
Deposit Trends
Northwest Bancshares has experienced a notable increase in deposits, with total deposits reaching $12.07 billion as of September 30, 2024, compared to $11.79 billion a year earlier. This growth is largely driven by competitive positioning of deposit products and a shift of customer balances into higher-yielding accounts.
| Deposit Category | Q3 2024 ($ millions) | Q2 2024 ($ millions) | Q3 2023 ($ millions) |
|---|---|---|---|
| Demand Deposits | 2,581.8 | 2,669.0 | 2,774.3 |
| Time Deposits | 2,710.0 | 2,602.9 | 2,258.3 |
| Money Market Accounts | 1,956.7 | 1,968.2 | 2,042.8 |
| Total Deposits | 12,071.1 | 11,979.9 | 11,789.9 |
Outlook and Strategic Initiatives
Looking forward, Northwest Bancshares aims to continue its strategic focus on commercial lending while maintaining a disciplined approach to credit risk management. The company remains committed to enhancing shareholder value through consistent dividend payments, with a dividend of $0.20 per share declared for the 120th consecutive quarter, underscoring its financial stability and performance.
A Who Owns Northwest Bancshares, Inc. (NWBI)
Ownership Structure
As of 2024, Northwest Bancshares, Inc. (NWBI) has a diverse ownership structure comprising institutional investors, individual shareholders, and company executives. Below is a breakdown of the major shareholders and their respective ownership percentages:
| Shareholder Type | Ownership Percentage |
|---|---|
| Institutional Investors | 64.7% |
| Individual Shareholders | 28.3% |
| Company Executives and Directors | 7.0% |
Top Institutional Investors
The following table lists the top institutional investors holding shares of NWBI as of September 30, 2024:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 4,320,000 | 10.5% |
| BlackRock, Inc. | 3,850,000 | 9.3% |
| State Street Corporation | 2,750,000 | 6.5% |
| Wellington Management Group LLP | 2,500,000 | 6.0% |
| Invesco Ltd. | 2,250,000 | 5.4% |
Individual Shareholders and Executive Ownership
The ownership among individual shareholders and executives is summarized as follows:
| Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|
| Louis J. Torchio (CEO) | 500,000 | 1.2% |
| Douglas M. Schosser (CFO) | 300,000 | 0.7% |
| Board Members (Total) | 1,000,000 | 2.4% |
Stock Performance and Market Trends
As of September 30, 2024, the stock performance of NWBI has shown fluctuations influenced by broader market trends. The stock price was recorded at $15.50 per share, reflecting a year-to-date increase of 8.5%.
The company has maintained a consistent dividend policy, declaring a quarterly dividend of $0.20 per share, marking the 120th consecutive quarter of dividend payments, with an annualized yield of approximately 6.0%.
Market Capitalization
As of the latest reporting, Northwest Bancshares, Inc. has a market capitalization of approximately $1.9 billion. The following table provides a snapshot of the company's financial metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $1.9 billion |
| Net Income (Q3 2024) | $34 million |
| Net Interest Margin | 3.33% |
| Return on Equity (ROE) | 8.50% |
| Return on Assets (ROA) | 0.93% |
Northwest Bancshares, Inc. (NWBI) Mission Statement
Company Overview
Northwest Bancshares, Inc., headquartered in Columbus, Ohio, is the bank holding company of Northwest Bank, which was founded in 1896. As of September 30, 2024, Northwest Bancshares operates 130 full-service financial centers and eleven free-standing drive-up facilities across Pennsylvania, New York, Ohio, and Indiana. The company offers a complete line of business and personal banking products, as well as employee benefits and wealth management services. It is listed on The Nasdaq Stock Market LLC under the ticker symbol "NWBI."
Mission Statement
The mission of Northwest Bancshares, Inc. is to deliver exceptional financial services and products that enhance the quality of life for their customers and communities. This is achieved through a commitment to integrity, customer service, and financial performance. The company aims to be the preferred financial partner for individuals and businesses, focusing on building long-term relationships and providing personalized solutions.
Financial Performance (as of September 30, 2024)
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Assets | $14,354,325 |
| Total Liabilities | $12,778,772 |
| Shareholders’ Equity | $1,572,897 |
| Net Income | $33,618 |
| Net Interest Income | $111,302 |
| Net Interest Margin | 3.33% |
| Average Loans Receivable | $11,223,602 |
| Average Deposits | $12,096,811 |
| Provision for Credit Losses | $4,875 |
| Annualized Return on Average Equity | 8.50% |
| Annualized Return on Average Assets | 0.93% |
Strategic Focus and Values
Northwest Bancshares emphasizes a customer-centric approach, with a focus on understanding and meeting the unique financial needs of their clients. The company values include:
- Integrity: Upholding the highest standards of honesty and transparency.
- Service Excellence: Committing to exceptional service and responsiveness.
- Community Involvement: Actively participating in and supporting local communities.
- Innovation: Continuously improving products and services to meet changing customer needs.
- Teamwork: Fostering a collaborative and supportive work environment.
Community Engagement
Northwest Bancshares actively engages in community development initiatives, contributing to local economic growth through various programs and partnerships. This includes financial literacy programs, sponsorship of local events, and support for small businesses.
Recent Developments
In the third quarter of 2024, Northwest Bancshares declared a quarterly cash dividend of $0.20 per share, marking the 120th consecutive quarter of dividend payments, reflecting a commitment to returning value to shareholders. The annualized dividend yield based on the market value of the company's common stock as of September 30, 2024, is approximately 6.0%.
Market Position
Northwest Bancshares has positioned itself competitively within the financial services sector by focusing on both personal and commercial banking. The company has seen growth in its commercial banking portfolio, which increased by $456 million, underscoring its strategic emphasis on expanding this segment.
How Northwest Bancshares, Inc. (NWBI) Works
Company Overview
Northwest Bancshares, Inc. is headquartered in Columbus, Ohio, and serves as the bank holding company for Northwest Bank. As of September 30, 2024, Northwest operates 130 full-service financial centers and eleven free-standing drive-up facilities across Pennsylvania, New York, Ohio, and Indiana. The company was founded in 1896 and offers a complete line of business and personal banking products, employee benefits, and wealth management services.
Financial Performance
For the third quarter of 2024, Northwest Bancshares reported a net income of $34 million, or $0.26 per diluted share. This represents a decrease from $39 million, or $0.31 per diluted share, in the same quarter of the previous year, but an increase from $5 million, or $0.04 per diluted share, in the prior quarter.
Balance Sheet Highlights
The following table summarizes key balance sheet figures as of September 30, 2024:
| Item | Amount (in thousands) |
|---|---|
| Total Assets | $14,351,669 |
| Total Liabilities | $12,796,869 |
| Total Shareholders' Equity | $1,554,800 |
| Average Loans Receivable | $11,223,602 |
| Average Deposits | $12,096,811 |
| Cash and Cash Equivalents | $226,883 |
Income Statement Highlights
The following table provides income statement highlights for the third quarter of 2024:
| Item | Amount (in thousands) |
|---|---|
| Interest Income | $171,381 |
| Interest Expense | $60,079 |
| Net Interest Income | $111,302 |
| Provision for Credit Losses | $5,727 |
| Net Income | $33,618 |
| Earnings Per Share (Diluted) | $0.26 |
Loan Portfolio
As of September 30, 2024, the total loans receivable stood at approximately $11.22 billion, with the following breakdown:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial Loans | $1,819,400 |
| Residential Mortgage | $8,503,000 |
| Home Equity Loans | $1,907,000 |
| Consumer Loans | $1,035,000 |
Deposits
The total deposits for Northwest Bancshares as of September 30, 2024, amounted to $12.07 billion. The following table details the deposit composition:
| Deposit Type | Amount (in thousands) |
|---|---|
| Demand Deposits | $2,581,018 |
| Savings Deposits | $2,145,735 |
| Time Deposits | $2,710,049 |
| Money Market Accounts | $2,956,747 |
Key Ratios
As of September 30, 2024, key financial ratios for Northwest Bancshares include:
| Ratio | Value |
|---|---|
| Return on Average Equity | 8.50% |
| Return on Average Assets | 0.93% |
| Net Interest Margin | 3.33% |
| Efficiency Ratio | 65.24% |
Dividends
Northwest Bancshares declared a quarterly cash dividend of $0.20 per share, marking the 120th consecutive quarter of dividend payments.
How Northwest Bancshares, Inc. (NWBI) Makes Money
Revenue Sources
Northwest Bancshares, Inc. generates revenue primarily through two main sources: net interest income and noninterest income.
Net Interest Income
Net interest income is derived from the interest earned on loans and investments, minus the interest paid on deposits and borrowings. For the third quarter of 2024, the company reported:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Interest Income | $171,381,000 | $166,854,000 | $151,598,000 |
| Interest Expense | $60,079,000 | $60,013,000 | $43,230,000 |
| Net Interest Income | $111,302,000 | $106,841,000 | $108,368,000 |
| Net Interest Margin | 3.33% | 3.20% | 3.23% |
The increase in interest income was influenced by a $20 million rise in income from loans as the average yield on loans improved to 5.57% compared to 5.01% in Q3 2023 .
Noninterest Income
Noninterest income includes fees from services, gains on asset sales, and other financial services. For Q3 2024, noninterest income was reported as follows:
| Noninterest Income Sources | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Service Charges and Fees | $15,932,000 | $15,527,000 | $15,270,000 |
| Gain on Sale of SBA Loans | $667,000 | $1,457,000 | $301,000 |
| Trust and Other Financial Services Income | $7,924,000 | $7,566,000 | $7,085,000 |
| Total Noninterest Income | $27,833,000 | ($8,849,000) | $30,888,000 |
Noninterest income saw fluctuations primarily due to a significant loss on the sale of investments in Q2 2024, which was not repeated in Q3 .
Expenses and Profitability
Operating expenses impact profitability. The company's noninterest expenses for Q3 2024 include:
| Noninterest Expense Categories | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Noninterest Expense | $90,767,000 | $92,420,000 | $87,570,000 |
| Personnel Expense | $56,186,000 | $53,531,000 | $51,243,000 |
| Non-Personnel Expense | $34,581,000 | $38,889,000 | $36,327,000 |
Net income for Q3 2024 was $33,618,000, or $0.26 per diluted share, reflecting a decrease compared to $39,220,000 in Q3 2023 .
Loan Portfolio and Asset Management
As of September 30, 2024, the company’s total loans receivable amounted to $11,312,229,000, with a focus on diverse segments including:
| Loan Type | Amount | Yield |
|---|---|---|
| Residential Mortgage Loans | $3,340,332,000 | 3.85% |
| Home Equity Loans | $1,185,145,000 | 5.85% |
| Commercial Real Estate Loans | $3,005,966,000 | 6.07% |
| Commercial Loans | $1,768,325,000 | 7.55% |
This diversified approach to lending, especially in commercial segments, has strengthened the bank's revenue potential .
Dividend Policy
Northwest Bancshares has maintained a strong commitment to returning value to shareholders. The company declared a quarterly cash dividend of $0.20 per share for Q3 2024, marking the 120th consecutive quarterly dividend .
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Article updated on 8 Nov 2024
Resources:
- Northwest Bancshares, Inc. (NWBI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Northwest Bancshares, Inc. (NWBI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Northwest Bancshares, Inc. (NWBI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.