Northwest Bancshares Q2 net income rises 59% to record on higher net interest income

Overview

• U.S. regional bank's Q2 net income rose 59% yr/yr to record $54 mln

• Adjusted diluted EPS for Q2 was $0.37, up from $0.35 in prior quarter

• Net interest income rose 23% yr/yr, net interest margin expanded to 3.75%

Outlook

• Company continues to focus on organic growth initiatives and expanding its financial center network

• Northwest Bancshares says it is investing in talent, technology, and new financial centers

• Company highlights strength of retail deposit franchise and lower deposit costs as current conditions

Result Drivers

• NET INTEREST INCOME - Higher average yields and growth in earning assets, especially from the Penns Woods acquisition, drove an increase in net interest income

• NONINTEREST INCOME - Growth in service charges, deposit-related fees, and wealth management income contributed to higher noninterest income

• DEPOSIT GROWTH - Increase in average deposits, especially interest-bearing accounts, supported funding and reduced short-term borrowing needs

Company press release: ID:nPn3kJ5qja

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Northwest Bancshares Inc is $15.00, about 2.6% below its July 24 closing price of $15.40

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)