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