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what it is
Northwest Banc is a regional bank that takes deposits, makes loans, and sells basic banking services across four states.
how it gets paid
Last year Northwest Banc made $750M in revenue. net interest income was the main engine at $525M, or 70% of sales.
why it's growing
Revenue grew 12.0% last year. The key number was $0.33 in EPS because it beat the $0.28 estimate and showed the acquisition lift is still flowing through.
what just happened
Northwest just posted $0.33 in quarterly EPS versus a $0.28 estimate, a 17.86% beat.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
60/100 earnings predictability — reasonably predictable
11.6x trailing p/e — the market's not buying it — or you found a deal
6.3% dividend yield — cash in your pocket every quarter
xvary composite: 59/100 — below average
What they do
Northwest Banc is a regional bank that takes deposits, makes loans, and sells basic banking services across four states.
This is a habit business. Your checking account, mortgage, and bill pay rarely move unless something breaks. Northwest has 180-plus locations across Pennsylvania, New York, Ohio, and Indiana, which keeps it close to the customer while its price stability score sits at 85 out of 100. Switching costs (moving your financial life) → paperwork, risk, and hassle → so most people stay put.
How they make money
$750M
annual revenue · their business grew +12.0% last year
net interest income
$525M
+12.0%
service charges and fees
$98M
+0.0%
wealth management and trust
$68M
+0.0%
insurance commissions
$37M
+0.0%
other noninterest income
$22M
+0.0%
The products that matter
core banking spread income
Net interest income
$599M · roughly 85% of shown mix
This is the main engine. The bank pays depositors one rate, charges borrowers a higher one, and keeps the spread. When that spread widens, earnings usually follow.
main earnings driver
fees not tied directly to loan spreads
Non-interest income
$106M · roughly 15% of shown mix
This is the stabilizer. It will not turn NWBI into a growth machine, but it matters because banks leaning only on loan spreads get pushed around by rates.
small but useful
wealth-management fee business
Northwest Investment Services
part of fee income
The page data is thin here, so we are not pretending this segment is bigger than it is. The role is simple: bring in fee income that does not depend entirely on deposit costs and loan yields.
diversifier
Key numbers
6.3%
dividend yield
Dividend yield → cash paid to shareholders each year → so you are getting real money while the stock's price case stays modest.
11.6x
trailing p/e
P/E → price relative to yearly profit → so you are not paying a growth-stock multiple for a slow regional bank.
$14
18-month target
Target price → an estimate of where shares may trade in 18 months → so the near-term price upside is about 10% from $12.78.
9%
return on equity
Return on equity → profit generated from shareholder money → so this bank is profitable, just not elite.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 85 / 100
- net profit margin 18.1% — keeps 18 cents of every dollar in revenue
- return on equity 9% — $0.09 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in NWBI 3 years ago → it's now worth $11,230.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Northwest just posted $0.33 in quarterly EPS versus a $0.28 estimate, a 17.86% beat.
Annual revenue was $750 million, up 12.0% vs. prior year, and recent results got help from the Penns Woods acquisition. Quarterly EPS also improved through 2025, moving from $0.26 to $0.29 before the latest beat.
$547M
revenue
$0.33
eps
n/a
n/a
the number that mattered
The key number was $0.33 in EPS because it beat the $0.28 estimate and showed the acquisition lift is still flowing through.
-
northwest bancshares' purchase of penns woods bancorp appears to be paying off.
-
the july purchase was an all-stock transaction valued at $270.4 million.the combined company has total assets of $16.3 billion, putting it in contention to be one of the nation's top 100 banks.
-
penns woods shareholders received 2.385 shares of northwest stock for each penns woods share, providing them with an approximate 12% stake in the new company.in the third quarter, the acquisition drove a $17 million increase in net interest income, partially offset by an $11 million increase in adjusted noninterest expense.
-
in all, net adjusted income rose $2.4 million, to $0.29 a share.however, this excludes about $0.16 a share from merger expenses and a head-scratching $0.11 a share due to a delay in the impact of current and expected credit losses (cecl).
-
the bank's ratio of tier 1 capital to risk-weighted assets, at 12.2%, continues to be well above the 8.5% minimum capital requirements.we look for earnings to remain quite steady. A potential lift could come from more normalized levels of credit losses and charge-offs. vs. prior year comparisons, though, will likely remain difficult due to both the recent acquisition and to the bank's repositioning of its securities portfolio last year.
source: company earnings report, 2026
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What could go wrong
NWBI's risk stack is not exotic. It's more annoying than dramatic. You are watching a slow-growth bank with a high dividend and only middling returns. If revenue keeps slipping, the yield stops looking generous and starts looking like compensation.
med
Revenue is guiding down, not up
Management guided 2026 revenue to $710M–$730M versus $750M in 2025. That's a real decline, not a rounding error.
If the business shrinks while the stock is owned mainly for income, you start debating dividend coverage instead of upside.
med
Returns on capital are ordinary
Return on equity is 8%, and return on assets is 0.72%. In plain English: the bank is profitable, but it is not squeezing standout earnings from its balance sheet.
Low returns cap valuation. Banks with ordinary returns rarely get premium multiples for long.
med
The branch network has to earn its keep
NWBI operates 180 branches across four states. That helps funding, but it also means fixed costs you cannot wish away.
If deposit growth shifts faster than the branch model adapts, expenses stay sticky while the revenue base softens.
med
The dividend does the marketing
A 6.3% yield is the headline. That is attractive, but it also raises the bar for the income case to stay intact.
If earnings do not cover the payout comfortably under a lower revenue guide, the market will stop treating the yield as a feature and start treating it as a warning.
The core risk is simple: if revenue lands below the guide range or return on equity stays stuck around 8%, the stock is not cheap. It's just slow.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
Net interest margin after the 3.33% print
This is the cleanest operating tell. If margin holds or improves from 3.33%, the earnings beat has a better chance of sticking. If it slips back, the revenue guide gets harder to ignore.
calendar
Q1 2026 earnings report
Expected around late April 2026. You want to see whether management sounds more confident about landing inside the $710M–$730M revenue range.
risk
Dividend coverage under a lower revenue base
The 6.3% yield is why many people are here. Watch what management says around the next declaration and whether earnings keep doing enough work to support it.
trend
Institutional buying versus stock performance
Three straight quarters of net buying is supportive. What matters next is whether that support finally shows up in returns, because the last three years still lagged the market.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a clear near-term edge here.
risk profile
average
stability score 3 — this looks like a typical regional bank risk setup, not a bunker stock and not a rollercoaster.
chart momentum
below average
technical score 4 — the tape is not doing the bulls any favors from here.
earnings predictability
60 / 100
Reasonably readable, but not clean enough to assume smooth quarters. Expect some noise.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 176 buyers vs. 93 sellers in 3q2025. total institutional holdings: 99.0M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$10
$18
$13
current price
$14
target midpoint · +10% from current · 3-5yr high: $20 (+55% · 16% ann'l return)
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