Northwest Bancshares (NWBI) Net Interest Margin Of 3.69% Reinforces Bullish Profitability Narratives

Northwest Bancshares (NWBI) has put up a solid finish to FY 2025, with Q4 total revenue of US$172.2 million and basic EPS of US$0.31. The company also reported trailing 12 month revenue of US$599.1 million and EPS of US$0.93, alongside earnings growth of 25.8% over the last year. Over recent periods the company has seen total revenue move from US$498.1 million on a trailing basis in Q4 2024 to US$599.1 million in Q4 2025, while trailing EPS has gone from US$0.79 to US$0.93 as net margin held around 21%. This sets up a results season where profitability is front and center for investors.

See our full analysis for Northwest Bancshares.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with the widely followed narratives around growth, risk, and income potential for Northwest Bancshares.

Curious how numbers become stories that shape markets? Explore Community Narratives

Loan book edges past US$13b with margin near 3.7%

• Total loans reached about US$13.0b in Q4 2025, with a net interest margin of 3.69% and a cost to income ratio of 59.52%.
• What stands out for a more optimistic view is that loan balances moved from roughly US$11.2b in Q1 2025 to about US$13.0b by Q4, while the trailing 12 month net profit margin sat at 21%. This gives bulls a story of a larger loan book still earning solid spreads.
  • Supporters pointing to earnings momentum can lean on trailing EPS of US$0.93 and net income of US$126.0m over the last year, alongside the 25.8% earnings growth figure that has already been reported.
  • At the same time, Q4 2025 net interest margin of 3.69% compares with 3.33% in Q3 2024, which fits a bullish argument that core banking profitability metrics have held up while scale has increased.

To see how that loan growth and margin profile fit into the bigger bullish and cautious stories around Northwest Bancshares, check out the latest narrative views on the company. 📊 Read the full Northwest Bancshares Consensus Narrative.

Non performing loans rise to about US$108m

• Non performing loans moved from US$59.4m in Q1 2025 to US$107.9m in Q4 2025, after being US$62.1m in Q4 2024.
• Critics focus on the more cautious angle that credit quality is a watch point, and the step up in non performing loans gives that view some backing, even alongside the reported 21% net margin.
  • Bears can point to the move from US$62.1m of non performing loans in Q4 2024 to US$107.9m in Q4 2025 as a sign that more loans are not currently paying as agreed, which they see as a risk to future earnings.
  • They may also link this with the large US$42.8m one off loss recorded in the last 12 months, arguing that both items remind investors that recent strong earnings growth figures can sit alongside credit and one time loss pressures.

Valuation gap vs DCF fair value and rich P/E

• The current share price of US$12.76 sits well below the stated DCF fair value of about US$25.30, while the stock trades on a P/E of 14.8x compared with peers at 12.9x and the US Banks industry at 11.8x.
• What is interesting for you as an investor is that the same data that suggests a large gap to DCF fair value also shows Northwest Bancshares on a richer P/E than peers, so bullish and bearish takes both find support in the numbers.
  • Supporters often highlight that the share price is roughly 49.6% below the provided DCF fair value of US$25.30, and combine that with 25.8% trailing earnings growth and a 6.27% dividend yield to argue there is room for value and income at the same time.
  • Skeptics instead point to the 14.8x P/E relative to 12.9x for peers and 11.8x for the broader US Banks group, saying that even with the valuation gap to DCF fair value, the market is already paying more per dollar of trailing earnings than for many similar banks.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Northwest Bancshares's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Northwest Bancshares solid earnings and dividend profile sit alongside rising non performing loans and a large one off loss, which both highlight credit and balance sheet pressure.

If that mix of credit risk and special charges bothers you, use our solid balance sheet and fundamentals stocks screener (387 results) to focus on companies with stronger finances that may handle future shocks more comfortably.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com