Northeast Bank Q1 net income rises on loan growth; EPS increases
Overview
US commercial lender's fiscal Q1 net income rose yr/yr on higher loan production
Diluted EPS for fiscal Q1 increased to $3.42 from $2.67 a year earlier
National Lending Division posted record originated loan volume and strong asset quality metrics
Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release
Result Drivers
LOAN PRODUCTION - Co said higher net income was driven by strong loan production, including record originated volume in National Lending Division
INTEREST INCOME - Co attributed net income growth to increased interest income from higher average loan balances, partially offset by lower yields
PURCHASED LOAN RETURNS - Co said total return on purchased loans rose to 9.1% from 8.2% a yr earlier, driven by higher transactional income and regularly scheduled interest and accretion
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Net Income | $29.0 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 Northeast Bank is $143.50, about 11.5% above its October 23 closing price of $128.74
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
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(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.)