NWBI · Northwest Bancshares, Inc. Q2 FY2026 earnings call record财报电话会记录

“We recorded net interest margin of 375 basis points in the second quarter of 2026, benefiting from our deposit franchise, which continues to be one of Northwest's core strengths.”

“We recently announced the hiring of our new chief information officer and three new hires into leadership roles in our consumer bank to strengthen how we engage customers across our network digital platforms, and product lines.”

“As we look ahead for the rest of 2026, we continue to focus on organic growth initiatives, further optimizing our financial performance, expanding our financial center network, serving our core customers and communities.”

“Our GAAP EPS for the quarter was $0.36 per share, and on an adjusted basis, our EPS was $0.37 per share, an improvement on the prior quarter of $0.02 per share on both a GAAP basis and an adjusted basis, driven by growth in average earning assets, accrued fee income, and a decrease in our cost of deposits.”

“This also translated into an improvement in our adjusted efficiency ratio to 56.2%, which was 158 basis point improvement quarter-over-quarter, all of which created an improvement in our pre-tax, pre-provision net revenue in the second quarter 2026, which increased to $77.3 million, an 8% increase from the first quarter 2026, and a 31% increase year-over-year on an adjusted basis.”

“In addition, there is an opportunity to restructure our sub-debt by extinguishing it within the next quarter, as it already received a 20% regulatory capital haircut last September and will lose an additional 20% of its regulatory capital treatment this September.”

“Our granular, diversified deposit book has an average balance of $19,800, with customer deposits consisting of over 716,000 accounts with an average tenure of more than 12.5 years.”

“New volumes, which are coming on with rates in the low 3%, are driving an overall decline in CD costs, supporting an overall decline in deposit costs.”

“Turning to credit quality on Slide 13, our credit risk metrics remain within internal expectations given the impact of the loans we acquired.”

“Finally, on Slide 15, we'd like to provide a current full year outlook for 2026, specifically.”

“For net interest margin, we expect to be in the 373-375 basis points range, assuming that the Fed funds rate is unchanged.”

“Like I said, we're doing other things to continue to support the margin, like thinking about the sub-debt and other opportunities that we have in the event we would have a little bit more deposit cost pressure.”