Regional banking company Northwest Bancshares (NASDAQ: NWBI) 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.
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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 (NASDAQ: NWBI) 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. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
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).
