Northwest Bancshares earns $51 million in third quarter despite sequential decline
Key Facts
Northwest Bancshares reported GAAP net income of $51 million, or $0.34 per diluted share, for the quarter ended September 30, 2026, up $48 million from the same period a year earlier. The company said in a statement via PR Newswire that net income in the third quarter of 2025 was $3 million, or $0.02 per diluted share. Sequentially, net income fell $3 million from $54 million, or $0.36 per share, in the second quarter of 2026. Adjusted non-GAAP diluted earnings per share were about $0.35 in the third quarter. The company released its results after the market closed on October 26, after its shares had closed at $15.48 on October 23.
Earnings came alongside record net interest income of $148.95 million, up 9.5% from the third quarter of 2025 and 1.4% from the second quarter of 2026, according to company data filed with the U.S. Securities and Exchange Commission. Northwest also described total revenue as a record in the third quarter, without the statement specifying a broader historical range for that description. But net interest margin was 3.70%, down from 3.75% in the previous quarter, though still above the 3.65% recorded a year earlier. The figures show a divergence between rising interest income and year-over-year margin improvement, and a sequential decline in the margin. That provides context for the large annual increase in earnings alongside the modest drop from the previous quarter.
The company recorded growth in lending and deposits during the quarter. Average loans outstanding rose 5.8% year over year to about $13.30 billion, while average deposits were $14.14 billion, up 6.3% from the same period in 2025. Northwest also reported 31% growth in commercial and industrial loans compared with a year earlier, without the available excerpt specifying whether that figure represents average loans or overall growth. Meanwhile, annualized net charge-offs were 0.15%, and nonperforming loans were 0.74%. These indicators place the expansion in commercial lending alongside the credit quality measures the company reported for the third quarter.
The provision for credit losses fell to $9.1 million in the third quarter of 2026, from about $31.2 million a year earlier. The company attributed much of the difference to an initial provision of $20.6 million associated with the acquisition of Penns Woods in the third quarter of 2025. The year-over-year comparison in provisions therefore reflects the impact of the acquisition item, as well as the provision recorded in the current quarter. The decline came alongside the charge-off and nonperforming loan indicators cited in the statement. Northwest Bancshares is the holding company for Northwest Bank and is based in Columbus, Ohio.
Chief Executive Louis Torchio said the company opened its first two financial centers in Columbus during the third quarter. He added that the company is looking forward to "a strong finish to the fourth quarter of 2026," while continuing to build on momentum in the city and across its branch network and commercial businesses. Northwest operates in Pennsylvania, New York, Ohio and Indiana, according to the company’s description of its business. The board declared a quarterly cash dividend of $0.20 per share, marking its 128th consecutive quarterly cash dividend. The dividend is payable November 17, 2026, to shareholders of record on November 5.
The company had scheduled a call to review its third-quarter results for October 27, 2026, at 9:00 a.m. Eastern time. Its announcement said the results and supporting financial data were scheduled for release after the market closed on October 26. The call gives management an opportunity to present the results after their publication, including the year-over-year and sequential comparisons announced by the company. The results include record net interest income, growth in loans and deposits, credit quality indicators, and a decline in net interest margin from the second quarter. This comes as management said it is looking forward to finishing the fourth quarter strongly.