Western New England Bancorp Q3 profit nearly doubles on higher net interest income

By Reuters News


Overview

  • U.S. regional bank's Q3 net income and EPS nearly doubled from prior year

  • Company attributes results to higher net interest income and reversal of credit losses

  • Board authorized new plan to repurchase up to 1 mln shares, about 5% of shares outstanding


Outlook

  • Company did not provide specific financial guidance for the current quarter or full year in its press release


Result Drivers

  • NET INTEREST INCOME - Net interest income rose 10.5% from prior year, driven by higher interest and dividend income and lower interest expense

  • CREDIT LOSS REVERSAL - Co recorded a reversal of credit losses, citing paydowns in the loan portfolio, changes in portfolio mix, and improved economic outlook

  • NON-INTEREST INCOME - Non-interest income grew 23.1%, mainly due to a $712,000 gain on sale of two buildings


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.32

Q3 Net Income

$6.30 mln

Q3 Net Interest Income

$20 mln

Q3 Dividend

$0.07

Q3 Net Interest Margin

3.07%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "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 Western New England Bancorp Inc is $15.00, about 8.6% above its October 26 closing price of $13.81

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Oct 26 - Northwest Bancshares Q3 adjusted EPS beats estimates on C&I loan growth

  • Oct 26 - German American Bancorp Q3 net income rises on higher yields and margin expansion

  • Oct 26 - Business First Bancshares Q3 net income rises on loan and deposit growth


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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