Northeast Bank Q4 net income rises to $25.2 mln

Overview

• Northeast Bank fiscal Q4 net income rises to $25.2 mln, driven by record net interest income

• EPS for fiscal Q4 increases to $3.00, reflecting improved profitability

• Loan portfolio grows 37.3% yr/yr, total assets increase 36.6% yr/yr

Result Drivers

• NET INTEREST INCOME - Record net interest income primarily drove earnings, per CEO Rick Wayne

• LOAN PORTFOLIO GROWTH - Loan portfolio increased 37.3% yr/yr, contributing to higher interest income

• SBA LOAN SALES - Gain on sale of SBA loans boosted noninterest income by $6.8 mln

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 "buy"

• Wall Street's median 12-month price target for Northeast Bank is $100.00, about 4.1% above its July 25 closing price of $95.88

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX96mRfx