Company continues to focus on organic growth initiatives and expanding its financial center network
Northwest Bancshares says it is investing in talent, technology, and new financial centers
Company highlights strength of retail deposit franchise and lower deposit costs as current conditions
Overview
U.S. regional bank's Q2 net income rose 59% yr/yr to record $54 mln
Adjusted diluted EPS for Q2 was $0.37, up from $0.35 in prior quarter
Net interest income rose 23% yr/yr, net interest margin expanded to 3.75%
Result Drivers
Net interest income - Higher average yields and growth in earning assets, especially from the Penns Woods acquisition, drove an increase in net interest income
Noninterest income - Growth in service charges, deposit-related fees, and wealth management income contributed to higher noninterest income
Deposit growth - Increase in average deposits, especially interest-bearing accounts, supported funding and reduced short-term borrowing needs
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Northwest Bancshares Inc is $15.00, about 2.6% below its July 24 closing price of $15.40
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
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