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