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Northwest Bancshares (NASDAQ:NWBI) Exceeds Q2 Expectations

By: StockStory

July 29, 2025 at 16:33 PM EDT

NWBI Cover Image

Regional banking company Northwest Bancshares (NASDAQ: NWBI) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 53.5% year on year to $150.4 million. Its non-GAAP profit of $0.30 per share was 7.1% above analysts’ consensus estimates.

Is now the time to buy Northwest Bancshares? Find out by accessing our full research report, it’s free.

Northwest Bancshares (NWBI) Q2 CY2025 Highlights:

Net Interest Income: $119.4 million vs analyst estimates of $118.4 million (11.8% year-on-year growth, 0.9% beat)
Net Interest Margin: 3.6% vs analyst estimates of 3.5% (36 basis point year-on-year increase, 8.8 bps beat)
Revenue: $150.4 million vs analyst estimates of $148 million (53.5% year-on-year growth, 1.6% beat)
Efficiency Ratio: 64.9% vs analyst estimates of 63.1% (1.7 percentage point miss)
Adjusted EPS: $0.30 vs analyst estimates of $0.28 (7.1% beat)
Market Capitalization: $1.62 billion

Louis J. Torchio, President and CEO, Northwest Bancshares commented, "I am pleased with our performance in the second quarter of 2025, as we continue to execute our strategy, delivering on our commitment to sustainable, responsible and profitable growth. Overall, we built on our strong start to the year, with net interest margin expansion and revenue growth, and we continued to exercise prudent expense control, resulting in further improvements in our efficiency ratio."

Company Overview

Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ: NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.

Sales Growth

In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees.

Unfortunately, Northwest Bancshares’s 4.4% annualized revenue growth over the last five years was mediocre. This fell short of our benchmark for the bank sector and is a tough starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Northwest Bancshares’s annualized revenue growth of 3.6% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. Northwest Bancshares Year-On-Year Revenue Growth Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Northwest Bancshares reported magnificent year-on-year revenue growth of 53.5%, and its $150.4 million of revenue beat Wall Street’s estimates by 1.6%.

Net interest income made up 79.1% of the company’s total revenue during the last five years, meaning lending operations are Northwest Bancshares’s largest source of revenue.

Northwest Bancshares Quarterly Net Interest Income as % of Revenue

Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.

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Tangible Book Value Per Share (TBVPS)

Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.

Northwest Bancshares’s TBVPS grew at a sluggish 2.3% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 5.5% annually over the last two years from $8.84 to $9.85 per share.

Northwest Bancshares Quarterly Tangible Book Value per Share

Over the next 12 months, Consensus estimates call for Northwest Bancshares’s TBVPS to shrink by 4.2% to $9.43, a sour projection.

Key Takeaways from Northwest Bancshares’s Q2 Results

It was encouraging to see Northwest Bancshares beat analysts’ revenue and EPS expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. on the other hand, its efficiency ratio missed. Overall, this print had some key positives. The stock remained flat at $12.35 immediately after reporting.

Big picture, is Northwest Bancshares a buy here and now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.

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