NWBI - Northwest Bancshares: Earnings To Dip Due To Provision Normalization

• After a prolonged loan decline trend, the loan portfolio will likely turn around on the back of economic factors.
• The asset-liability gap is not significant. Therefore, the anticipated steep rise in interest rates will have a limited impact on the margin.
• The provision expense will likely normalize after a year of significant provision reversals.
• The December 2022 target price suggests a small upside from the current market price. NWBI is offering quite a high dividend yield, but the payout ratio is also too high.

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