The 5 Most Interesting Analyst Questions From Northwest Bancshares’s Q4 Earnings Call

Regional banking company Northwest Bancshares reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 19.8% year on year to $179.9 million. Its non-GAAP profit of $0.33 per share was 7.8% above analysts’ consensus estimates.

Northwest Bancshares (NWBI) Q4 CY2025 Highlights:

• Net Interest Income: $142.2 million vs analyst estimates of $141.6 million (24.5% year-on-year growth, in line)
• Net Interest Margin: 3.7% vs analyst estimates of 3.7% (3.1 basis point beat)
• Revenue: $179.9 million vs analyst estimates of $173.5 million (19.8% year-on-year growth, 3.7% beat)
• Efficiency Ratio: 63.1% vs analyst estimates of 59.3% (377.4 basis point miss)
• Adjusted EPS: $0.33 vs analyst estimates of $0.31 (7.8% beat)
• Tangible Book Value per Share: $9.63 vs analyst estimates of $9.56 (1.2% year-on-year growth, 0.7% beat)
• Market Capitalization: $1.82 billion

Louis J. Torchio, President and CEO, Northwest Bancshares commented, "2025 was a transformational year for Northwest Bank. We closed on a significant acquisition, drove record revenue of $655 million for the full year, and continued to expand the firm's net interest margin. Coupled with our demonstrated expense management discipline through the closing and integration of our sizeable acquisition, we drove double digit EPS growth, all while investing in the talent, technology, and new financial centers and products to support our future growth."

Company Overview

Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares 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. Over the last five years, Northwest Bancshares grew its revenue at a sluggish 4.6% compounded annual growth rate. This fell short of our benchmark for the banking sector and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Northwest Bancshares’s annualized revenue growth of 9.3% over the last two years is above its five-year trend, but we were still disappointed by the results.

This quarter, Northwest Bancshares reported year-on-year revenue growth of 19.8%, and its $179.9 million of revenue exceeded Wall Street’s estimates by 3.7%.

Net interest income made up 79.8% of the company’s total revenue during the last five years, meaning lending operations are Northwest Bancshares’s largest source of revenue.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.

This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

Northwest Bancshares’s TBVPS grew at a sluggish 1.5% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 2.5% annually over the last two years from $9.17 to $9.63 per share.

Over the next 12 months, Consensus estimates call for Northwest Bancshares’s TBVPS to grow by 5.5% to $10.16, lousy growth rate.

Key Takeaways from Northwest Bancshares’s Q4 Results

We enjoyed seeing Northwest Bancshares beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $12.79 immediately after reporting.

Northwest Bancshares may have had a good quarter, but does that mean you should invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).

Regional banking company Northwest Bancshares will be announcing earnings results this Monday after market close. Here’s what to look for.

Northwest Bancshares beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $168.1 million, up 20.8% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ net interest income estimates but a significant miss of analysts’ EPS estimates.

Is Northwest Bancshares a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Northwest Bancshares’s revenue to grow 15.5% year on year to $173.5 million, improving from the 11% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Northwest Bancshares has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Northwest Bancshares’s peers in the banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. WaFd Bank delivered year-on-year revenue growth of 7.6%, missing analysts’ expectations by 2.6%, and ServisFirst Bancshares reported revenues up 20.7%, topping estimates by 5%. WaFd Bank traded down 4% following the results while ServisFirst Bancshares was up 14.6%.

Read our full analysis of WaFd Bank’s results here and ServisFirst Bancshares’s results here.

Investors in the banks segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Northwest Bancshares is up 2% during the same time and is heading into earnings with an average analyst price target of $13.50 (compared to the current share price of $12.49).

What Happened?

Shares of regional banking company Northwest Bancshares jumped 3.1% in the afternoon session after strong earnings from peer KeyCorp boosted confidence in the regional banking sector. 

KeyCorp reported that its sales grew 12.5% compared to the previous year, reaching $2.01 billion, which was better than the market had expected. Its profits also beat analyst forecasts. The positive report from KeyCorp arrived as the broader banking industry also showed strong performance, with several big banks reporting earnings that surpassed estimates. This created a positive wave for other banking stocks, including Northwest Bancshares, as investors became more optimistic about the financial health of the sector.

After the initial pop the shares cooled down to $12.70, up 3.1% from previous close.

What Is The Market Telling Us

Northwest Bancshares’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 5.6% on the news that disclosures from two lenders raised concerns about deteriorating loan quality across the industry. 

The drop was triggered by specific incidents that have spooked investors. Zions Bancorp announced a $50 million charge-off—a debt the bank doesn't expect to collect—on a single loan. Separately, Western Alliance Bancorp revealed it was dealing with a borrower who had failed to provide proper collateral. These events are compounding existing anxieties about the regional banking sector, which is already under pressure from elevated interest rates and declining commercial real estate values. The news has heightened investor concerns that more cracks could appear in borrowers' creditworthiness, potentially leading to increased loan losses and reduced profitability for other banks in the sector.

Northwest Bancshares is up 6% since the beginning of the year, and at $12.70 per share, it is trading close to its 52-week high of $13.53 from July 2025. Investors who bought $1,000 worth of Northwest Bancshares’s shares 5 years ago would now be looking at an investment worth $923.93.

Let’s dig into the relative performance of Northwest Bancshares and its peers as we unravel the now-completed Q3 thrifts & mortgage finance earnings season.

Thrifts & Mortgage Finance institutions operate by accepting deposits and extending loans primarily for residential mortgages, earning revenue through interest rate spreads (difference between lending rates and borrowing costs) and origination fees. The industry benefits from demographic tailwinds as millennials enter prime homebuying age, technological advancements streamlining the loan approval process, and potential interest rate stabilization improving affordability. However, significant headwinds include net interest margin compression during rate volatility, increased competition from fintech disruptors offering digital-first experiences, mounting regulatory compliance costs, and potential housing market corrections that could impact loan portfolios and default rates.

The 15 thrifts & mortgage finance stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 4.7% while next quarter’s revenue guidance was 2.3% above.

In light of this news, share prices of the companies have held steady as they are up 3.3% on average since the latest earnings results.

Northwest Bancshares

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

Northwest Bancshares reported revenues of $168.1 million, up 20.8% year on year. This print exceeded analysts’ expectations by 2%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ net interest income estimates but a significant miss of analysts’ EPS estimates.

Louis J. Torchio, President and CEO, Northwest Bancshares commented, "I am pleased with our first quarter of performance as a combined company. The team completed merger integration activities on time, while staying focused on executing our strategy, and delivering on our commitment to sustainable, responsible, and profitable growth. The benefits of the additional scale from the merger are already evident. We delivered a record $168 million in revenue for the quarter, more than 25% year over year average commercial C&I loan growth continuing our strategic re-balancing, and drove a strong 3Q net interest margin of 3.65% as we maintained our loan yield and low-cost, high-quality, stable funding base. "

Unsurprisingly, the stock is down 1.7% since reporting and currently trades at $12.30.

Read our full report on Northwest Bancshares here, it’s free for active Edge members.

Best Q3: Ellington Financial

Operating under the guidance of Ellington Management Group, a respected name in structured credit markets, Ellington Financial acquires and manages a diverse portfolio of mortgage-related, consumer-related, and other financial assets to generate returns for investors.

Ellington Financial reported revenues of $82.76 million, up 23.6% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with a beat of analysts’ EPS and revenue estimates.

The market seems content with the results as the stock is up 1.5% since reporting. It currently trades at $13.88.

Weakest Q3: WaFd Bank

Founded in 1917 and rebranded from Washington Federal in 2023, WaFd is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states.

WaFd Bank reported revenues of $187.2 million, flat year on year, falling short of analysts’ expectations by 1.7%. It was a disappointing quarter as it posted a significant miss of analysts’ net interest income estimates and a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 19% since the results and currently trades at $33.11.

Read our full analysis of WaFd Bank’s results here.

TFS Financial

Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.

TFS Financial reported revenues of $84.48 million, up 14% year on year. This print met analysts’ expectations. It was a strong quarter as it also logged EPS in line with analysts’ estimates and a narrow beat of analysts’ tangible book value per share estimates.

The stock is flat since reporting and currently trades at $14.11.

Read our full, actionable report on TFS Financial here, it’s free for active Edge members.

Arbor Realty Trust

With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.

Arbor Realty Trust reported revenues of $112.4 million, down 28.2% year on year. This number missed analysts’ expectations by 25.8%. More broadly, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ revenue estimates.

Arbor Realty Trust had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 31.7% since reporting and currently trades at $7.89.

Read our full, actionable report on Arbor Realty Trust here, it’s free for active Edge members.