Northwest Bancshares Earnings: Keeping the Profitability Streak Alive

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Northwest Bancshares Inc. (NASDAQ:NWBI) reported its results for the second quarter. Northwest Bancshares is a federal savings and loan holding company which, through its subsidiary Northwest Savings Bank, offers traditional deposit and loan products.

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Northwest Bancshares Inc. Earnings Cheat Sheet

Results: Net income for Northwest Bancshares Inc. rose to $16.4 million (17 cents per share) vs. $15 million (15 cents per share) in the same quarter a year earlier. This marks a rise of 9.3% from the year-earlier quarter.

Actual vs. Wall St. Expectations: Northwest Bancshares Inc. fell in line with the mean analyst estimate of 17 cents per share.

Quoting Management: William J. Wagner, President and CEO, noted, “In the most recent quarter we continued to see many positive trends in our operations. We were pleased with the stability of our margin despite the continued challenges of the interest rate environment and competitive pricing pressures. During the quarter we experienced net loan growth of approximately $65 million, while asset quality continued to improve. Delinquent and non-accrual loans at the end of the quarter were at the lowest levels since the second quarter of 2008. Finally, through the hard work and dedication of our Board of Directors and employees in strengthening our compliance management system, we were pleased to announce the termination of the FDIC Consent Order on July 6, 2012.”

Key Stats:

The company fell in line with estimates last quarter after missing the mark in the previous two quarters. In the first quarter, it fell short by one cent, and in the fourth quarter of the last fiscal year, it was under-estimate by one cent.

Net income has increased 3.5% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 19.1% from the year-earlier quarter.

Looking Forward: The average estimate for the third quarter remains unchanged at 17 cents a share. At 66 cents per share, the average estimate for the fiscal year has fallen from 68 cents ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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