Citizens & Northern Q3 profit hits record on higher net interest income, credit benefit

Overview

• U.S. community bank's Q3 net income rose sharply yr/yr to a record level

• Company raised quarterly dividend by $0.02 per share to $0.30

• Quarterly results benefited from credit for credit losses and improved loan workout progress

Outlook

• Company expects prospects for loan growth to remain positive going forward

• Company continues to expect prospects for loan growth to remain positive

Result Drivers

• NET INTEREST INCOME - Higher earning-asset yields and purchase-accounting accretion lifted net interest income and margin

• CREDIT LOSS BENEFIT - Changes in qualitative factors and lower loans receivable resulted in a $3.2 mln credit for credit losses

• CORE EARNINGS GROWTH - Pre-tax, pre-provision net revenue increased quarter-over-quarter

Company press release: Full Story

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

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

• Wall Street's median 12-month price target for Citizens & Northern Corp is $27.00, about 5.3% above its October 21 closing price of $25.63

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

Reuters Recommended Reads

• Oct 22 - Juniata Valley Financial's Q3 profit rises on loan growth

• Oct 22 - S&T Bancorp's Q3 EPS rises to record high

• Oct 22 - United Bankshares Q3 EPS beats estimates, helped by loan growth

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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.)