ACNB's Q3 EPS and net income beat estimates, helped by loan growth and higher yields

By Reuters News


Overview

  • US financial holding company's Q3 adjusted EPS and net income beat analyst expectations

  • Net interest income for Q3 rose, driven by loan growth and higher yields

  • Company repurchased shares and raised quarterly dividend compared to prior year


Outlook

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


Result Drivers

  • LOAN GROWTH - Co said Q3 net interest income rose due to modest loan growth, especially in real estate construction and residential mortgage portfolios

  • HIGHER YIELDS - Co attributed increased net interest income and margin to loans and investment securities funded at higher rates than those that paid off or matured

  • CORE FUNDING GROWTH - Co said solid core funding growth allowed paydown of brokered deposits and was supported by promotional incentives and seasonal influx of municipal deposits


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

Beat

$1.55

$1.48 (3 Analysts)

Q3 Net Income

Beat

$15.7 mln

$14.95 mln (3 Analysts)

Q3 Net Interest Income

$34.80 mln

Q3 Net Interest Margin

4.56%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

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

  • Wall Street's median 12-month price target for ACNB Corp is $67.00, about 5.3% above its October 21 closing price of $63.64

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

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

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

  • Oct 22 - Amalgamated Financial's Q3 core EPS beats on higher interest income


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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