Northwest Bancshares Inc Md Stock Price, News & Analysis

Northwest Bancshares reported a net income of $49.0 million for the quarter ended June 30, 2021, reflecting a significant recovery from a net loss of $6.2 million in the same quarter last year. Earnings per diluted share were $0.38. The company attributed this improvement partly to a $25.3 million pre-tax gain from the sale of its insurance business. However, net interest income decreased by 2.4% to $95.7 million, impacted by a low interest rate environment. The company declared a cash dividend of $0.20 per share, marking the 107th consecutive quarterly dividend.

Northwest Bancshares, Inc. (NWBI) reported a net income of $40.2 million or $0.32 per diluted share for Q1 2021, significantly up from $7.9 million or $0.07 in Q1 2020. The annualized returns on average assets and equity were 1.17% and 10.61%. The quarterly cash dividend was increased by 5.3% to $0.20 per share. Improvements were noted in fee income and a decrease in credit loss provisions. However, total classified loans rose to $467.7 million, impacted by COVID-19. Net interest income increased by 15.2% to $100.5 million, despite a drop in net interest margin.

Northwest Bank has entered a definitive agreement to sell its insurance business, Northwest Insurance Services, to USI Insurance Services. This subsidiary offers various insurance products, including property and casualty, life, and employee benefits. The sale aims to enhance service capabilities and expand expertise in Pennsylvania and New York. The transaction is expected to close in early Q2 2021, pending customary conditions. Northwest Bank's leadership expresses confidence in USI's management and its commitment to client service, anticipating a fruitful partnership.

Northwest Bancshares, Inc. (NASDAQ: NWBI) reported a net income of $35.1 million for Q4 2020, a 37% increase from $25.6 million in Q4 2019. This equates to $0.28 per diluted share. Annual returns on average shareholders' equity and assets improved to 9.00% and 1.01%, respectively. A quarterly dividend of $0.19 per share was declared, marking 105 consecutive quarters of dividends. Despite a 32.2% annual decline in net income to $74.9 million, driven by higher credit loss provisions due to COVID-19, net interest income grew by 15.7% to $102.9 million. Noninterest expenses rose by 21.3% to $92.8 million.

Northwest Bancshares, Inc. (NWBI) reported a net income of $38.1 million for Q3 2020, reflecting a 13.9% increase from $33.4 million in Q3 2019. Diluted earnings per share were $0.30, down from $0.31. Non-GAAP net income adjusted for COVID-19 provisions was $40.1 million ($0.32 per diluted share), a 20.0% rise. Total classified loans increased 54.4% to $457.8 million, primarily due to the hospitality sector. The Board declared a $0.19 cash dividend, marking 104 consecutive quarters of dividends. Net interest income climbed 13.9% to $103.5 million. However, net interest margin decreased to 3.26% from 3.79% in the prior year.

Northwest Bancshares announced plans to close 42 of its 205 branches, or around 20%, from December 14 to December 18, 2020, to adapt to evolving customer preferences and increase operational efficiency. This decision follows a trend towards digital banking, accelerated by the COVID-19 pandemic. The branch optimization is anticipated to incur approximately $12 million in pre-tax costs, but should lead to annual pre-tax operating expense reductions of about $13 million starting in 2021.

Northwest Bancshares announced the pricing of its public offering of $125.0 million Fixed-to-Floating Rate Subordinated Notes due 2030. The initial interest rate is 4.00% per annum until September 15, 2025, transitioning to a floating rate thereafter. The offering, managed by Piper Sandler & Co., is expected to close on September 9, 2020. Net proceeds of approximately $123.8 million will support corporate purposes, including debt repayment and growth initiatives. The Notes are intended to qualify as Tier 2 capital for regulatory matters.

Northwest Bancshares reported a net loss of $6.2 million for Q2 2020, translating to $(0.05) per diluted share, a stark decline of 123.5% year-over-year. The loss is attributed primarily to COVID-related loan loss provisions of $21.3 million and $18.2 million from the MutualBank acquisition. Despite the loss, non-GAAP net income, adjusting for these factors, was $30.2 million, up 11.0% from last year. The company declared a quarterly cash dividend of $0.19 per share, marking its 103rd consecutive payout, with a yield of about 7.43%. Net interest income rose to $98.1 million, yet net interest margin decreased to 3.38%.