Orrstown Q3 net interest margin improves helped by higher yield on interest-earning assets

By Reuters News


Overview

  • U.S. regional bank's Q3 net income and EPS rose from prior quarter and year-ago period

  • Net interest margin increased to 4.12%, with 9% annualized loan growth in Q3

  • Total deposits declined 3% annualized, attributed to seasonal activity and time deposit maturities


Outlook

  • Company did not provide specific financial guidance for upcoming quarters or full year in its press release


Result Drivers

  • NET INTEREST MARGIN - Co said net interest margin rose 25 basis points to 4.12% due to higher yield on interest-earning assets and lower deposit costs

  • LOAN GROWTH - Co reported $95.3 mln increase in total loans, with strong growth in commercial and home equity segments

  • COST CONTROL - Co said efficiency ratio improved to 56.0% from 60.1% prior quarter, reflecting lower noninterest expenses


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$1.17

Q3 Net Income

$22.82 mln

Q3 Net Interest Income

$53.32 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "hold."

  • Wall Street's median 12-month price target for Orrstown Financial Services Inc is $44.50, about 7.7% above its October 19 closing price of $41.31

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Oct 19 - Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin

  • Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin

  • Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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