Q3 EPS Jumps 20% to $1.90 as Margin Widens; Nonperforming Loans Linger at 0.80%
CSBB has more than doubled off its 52-week low of $36.
Summary
CSB earned $1.90 per diluted share in Q3, up 20% from $1.57, on net income of $4.99M versus $4.15M. Nine-month earnings hit a record $14.17M, up 23%. The driver is the margin: FTE net interest margin rose to 3.99% from 3.67% as loans grew 10% and deposit costs eased to 1.27%. The offset is credit. Nonperforming loans sit at $7.1M, or 0.80% of loans, versus 0.09% a year ago, all tied to the single commercial relationship disclosed in Q2; the allowance is now $14.1M, or 1.58% of loans, and management says the credit remains well-secured and performing. Efficiency improved to 52.56% from 55.56%, and the $0.45 quarterly dividend was already declared in August. The stock trades near 1.5x book at $77.04, so the multiple now leans on that credit holding up.
At the time of this announcement, CSBB was trading at $75.00 on OTC in the Finance sector, with a market capitalization of approximately $197M. The 52-week trading range was $36.00 to $82.00. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.