NASDAQ$NWBI
Northwest Bancshares Inc · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Reported a net income of $38.1 million, representing an increase of 13.9% compared to the same quarter last year.
Northwest Bancshares reported a strong third quarter with a net income of $38.1 million, or $0.30 per diluted share, marking a 13.9% increase compared to the previous year. The company saw growth in net interest income and noninterest income, driven by mortgage banking operations, while also managing to significantly decrease loan payment deferrals.
- Net income for the quarter ended September 30, 2020, was $38.1 million, or $0.30 per diluted share, compared to $33.4 million, or $0.31 per diluted share, for the same quarter last year.
- Net interest income increased by $12.6 million, or 13.9%, to $103.5 million for the quarter ended September 30, 2020, from $90.9 million for the quarter ended September 30, 2019.
- Noninterest income increased by $10.5 million, or 40.1%, to $36.7 million for the quarter ended September 30, 2020, from $26.2 million for the quarter ended September 30, 2019, primarily due to an increase in mortgage banking income.
- Loans requesting payment deferrals have decreased significantly from last quarter from $1.312 billion, or 12.1% of the loan portfolio, at June 30, 2020 to just $212.7 million, or 2.0%, at September 30, 2020.
Headline financials
Revenue & EPS history
Northwest Bancshares · Revenue · Quarterly
$140M
Revenue by segment
Northwest Bancshares · $109M total across 6 segments · Q2 2020
- Loans receivable$103M—94.9%
- Mortgage-backed securities$4.04M—3.7%
- Tax-free investment securities$564K—0.5%
- Taxable investment securities$439K—0.4%
- FHLB stock dividends$309K—0.3%
- Interest-earning deposits$185K—0.2%
Forward guidance
The company is focused on executing initiatives including branch optimization, digital strategy implementation, and leveraging the subordinated debt offering.
Tailwinds
- Completing branch optimization in December.
- Continuing the implementation of the digital strategy.
- Capitalizing on the successful subordinated debt offering.
- Strong fee income led by mortgage banking operations.
- Credit loss provision decreased significantly.
Headwinds
- Classified assets jumped by $161.3 million, or 54.4%, during the quarter.
- Net interest margin decreased to 3.26% for the quarter ended September 30, 2020 from 3.79% for the same quarter last year.
- Increase in provision for credit losses by $3.5 million to $6.8 million.
- The estimated economic impact of COVID-19 caused an increase in provision expense for the quarter by approximately $1.5 million.
- Overall interest earning asset yields have been negatively impacted.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2020
+0.4%
Avg return
Earnings day
+0.4%
Avg return
5 days after
+1.3%
Avg return
30 days after
50%
34 / 68 earnings
Positive
+6.3%
Q1 2020
Best reaction
-3.7%
Q3 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +5.0% | +3.3% | +4.4% | |
| Q4 2025 | +0.7% | +1.7% | +2.0% | |
| Q3 2025 | -3.7% | -6.4% | -3.8% | |
| Q1 2025 | +5.7% | +6.5% | +4.2% | |
| Q4 2024 | +0.1% | -1.7% | -4.6% | |
| Q3 2024 | -0.1% | -1.3% | +9.8% | |
| Q2 2024 | +3.2% | +7.1% | -0.8% | |
| Q1 2024 | -1.2% | -2.8% | +1.2% | |
| Q4 2023 | +6.1% | +7.0% | -4.1% | |
| Q3 2023 | +5.5% | +6.2% | +12.5% | |
| Q2 2023 | +1.5% | +5.5% | -6.0% | |
| Q1 2023 | -2.3% | +2.0% | -6.1% | |
| Q4 2022 | -0.4% | +0.7% | +0.5% | |
| Q3 2022 | +4.7% | +8.1% | +9.5% | |
| Q2 2022 | +4.2% | +10.0% | +10.0% | |
| Q1 2022 | -3.1% | -4.4% | -4.4% | |
| Q4 2021 | +2.2% | -1.8% | -2.1% | |
| Q3 2021 | +1.2% | -2.1% | +0.1% | |
| Q2 2021 | -3.4% | -1.1% | -3.0% | |
| Q1 2021 | +0.4% | -0.7% | -1.8% | |
| Q4 2020 | -3.3% | -8.0% | +4.4% | |
| Q3 2020 | -0.7% | +0.9% | +17.0% | |
| Q2 2020 | -1.9% | -0.8% | +0.7% | |
| Q1 2020 | +6.3% | -1.1% | +3.9% | |
| Q4 2019 | -2.8% | -2.7% | -7.9% | |
| Q3 2019 | +4.9% | +2.7% | +0.1% | |
| Q2 2019 | -2.5% | -2.0% | -7.7% | |
| Q1 2019 | +0.8% | +0.3% | +1.0% | |
| Q4 2018 | -1.5% | -2.7% | +2.1% | |
| Q3 2018 | -0.6% | -1.7% | +6.7% | |
| Q2 2018 | +1.5% | +0.8% | +3.2% | |
| Q1 2018 | +1.2% | +2.1% | +2.8% | |
| Q4 2017 | +0.9% | -0.1% | -1.0% | |
| Q3 2017 | -0.8% | -2.3% | -7.1% | |
| Q2 2017 | +5.0% | +3.9% | +1.2% | |
| Q1 2017 | -0.8% | -4.7% | -9.9% | |
| Q4 2016 | +0.6% | -1.5% | +4.5% | |
| Q3 2016 | +0.3% | -0.4% | +17.1% | |
| Q2 2016 | -0.6% | -1.1% | +1.5% | |
| Q1 2016 | +0.9% | — | — | |
| Q4 2015 | +2.0% | — | — | |
| Q3 2015 | +0.0% | — | — | |
| Q2 2015 | -1.4% | — | — | |
| Q1 2015 | +3.5% | — | — | |
| Q4 2014 | +0.3% | — | — | |
| Q3 2014 | -0.6% | — | — | |
| Q2 2014 | -3.4% | — | — | |
| Q1 2014 | -1.5% | — | — | |
| Q4 2013 | -0.6% | — | — | |
| Q3 2013 | +3.1% | — | — | |
| Q2 2013 | -1.1% | — | — | |
| Q1 2013 | +1.1% | — | — | |
| Q4 2012 | +1.1% | — | — | |
| Q3 2012 | +1.2% | — | — | |
| Q2 2012 | +2.4% | — | — | |
| Q1 2012 | +1.8% | — | — | |
| Q3 2009 | -1.7% | — | — | |
| Q4 2010 | -1.7% | — | — | |
| Q4 2009 | -1.7% | — | — | |
| Q2 2009 | -1.7% | — | — | |
| Q1 2009 | -1.7% | — | — | |
| Q4 2011 | -1.7% | — | — | |
| Q3 2010 | -2.9% | — | — | |
| Q3 2011 | -2.9% | — | — | |
| Q2 2010 | +0.1% | — | — | |
| Q2 2011 | +0.1% | — | — | |
| Q1 2010 | -0.1% | — | — | |
| Q1 2011 | -0.1% | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro