Northeast Bank Q4 net income rises on record loan origination

Overview

• US commercial lender's fiscal Q4 net income rose 36% yr/yr to $34.3 mln

• Diluted EPS for fiscal Q4 was $4.05, up from $3.00 a year ago

• Quarterly results driven by record loan origination and higher interest income

Outlook

• Company did not provide specific guidance for upcoming quarters or full-year results

Result Drivers

• LOAN GROWTH - Record loan origination volume, especially in National Lending, drove higher interest income

• CREDIT LOSS PROVISION - Lower provision for credit losses contributed to higher net income

• NONINTEREST INCOME DECLINE - Lower gains on sale of SBA loans reduced noninterest income, partly offset by recovery of insured credit losses

Company press release: ID:nGNX64Tqt9

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 Northeast Bank is $136.50, about 5.6% above its July 24 closing price of $129.24

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 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.)