Northwest Bancshares (NWBI) Q3 2025 earnings summary

Executive summary

• Completed the Penns Woods Bancorp merger on July 25, 2025, the largest in company history, integrating all branches, employees, and customers, and adding $2.2–$3.5 billion in assets, $1.8–$2.7 billion in loans, and $1.6–$2.9 billion in deposits, with $57–$61 million in goodwill and $48 million in core deposit intangibles recorded.

• Achieved record quarterly revenue of $168–$168.1 million, up 20.8–21% year-over-year, and net interest income growth of 22%, driven by higher loan yields and acquisition impacts.

• Adjusted EPS for Q3 2025 was $0.29, up $0.03 year-over-year; GAAP EPS was $0.02, reflecting $31 million in merger and restructuring expenses.

• Net income for Q3 2025 was $3 million, down 91% year-over-year, mainly due to acquisition-related expenses; adjusted net income (non-GAAP) was $41 million, up $3 million sequentially.

• Opened a new de novo branch in Fishers, Indiana, broke ground on new Columbus, Ohio, financial centers, and expanded leadership with key hires.

Financial highlights

• Total assets reached $16.4 billion, deposits $13.7 billion, and loans $12.9 billion at quarter end.

• Net interest margin improved to 3.65%, up 9bps quarter-over-quarter, aided by higher loan yields and purchase accounting accretion.

• Noninterest income for Q3 2025 was $32 million, up 16% year-over-year, mainly from service charges, fees, and equity method investment gains.

• Noninterest expense rose 36.9–47% year-over-year, primarily due to $31 million in merger and restructuring costs and higher compensation expenses; adjusted efficiency ratio improved to 59.6%.

• Provision for credit losses was $31 million, including a $20.6 million Day 1 provision from the acquisition; allowance for credit losses coverage increased to 1.22%.

Outlook and guidance

• Net interest margin expected to remain in the mid-3.60% range, with some volatility due to purchase accounting accretion.

• Fourth quarter 2025 guidance: noninterest income of $32–$33 million, noninterest expense of $102–$104 million, and net charge-offs at the low end of the 25–35 bps range.

• Full cost savings from the merger expected by Q2 2026; full-year 2026 guidance to be provided in January 2026.

• Loan growth for 2026 expected to be in line with GDP growth, with strong pipelines in national specialty verticals.

• Effective tax rate for 2025 expected between 22.0% and 24.0%.