Northwest Bancshares: A Great Income Name, Near 7% Yield

(6min)

Summary

  • Q1 earnings for Northwest Bancshares, Inc. were strong, with revenues up 19% and net income increasing by $14 million, driven by margin expansion and lower credit loss provisions.
  • The bank's asset quality remains robust, with improvements in nonperforming loans and assets, despite a slight increase in the allowance for credit losses.
  • Northwest Bancshares offers a near 7% dividend yield and projects 20% commercial loan growth, making it an attractive income investment amid market volatility.
  • Consider buying NWBI shares between $12 and $10 in 50-cent increments, as the bank is well-positioned despite an uncertain operating environment.
  • Looking for more investing ideas like this one? Get them exclusively at BAD BEAT Investing. Learn More »

A female guest working on the porch of the guesthouse where she stayed during her trip to Japan.

Taiyou Nomachi

We have been keenly interested in the Q1 regional bank earnings, as they give us a pulse-check on many of the local economies. So far, we have seen little cause for concern in the many key metrics we follow for

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NWBI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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