Danvers Bancorp, Inc (DNBK) continues to expand organically and through acquisitions. Estimates are climbing and project earnings to double this year.
Company Description
Danvers is a holding company for banks in Massachusetts, with 25 branches. The company’s has $2.5 billion in assets and provides traditional banking services and non-deposit investment products and services.
Income Surges
Danvers reported quarter results on Jan 28 that showed net income of $2.6 million, up from a slight loss one year ago. Total deposits rose 58%. Net interest and non-interest incomes were up 52% and 45%, respectively.
Earnings per share came out to 14 cents, well ahead of the 8 cent loss analysts were expecting.
Openings and Mergers
Danvers opened 2 new branches last year and acquired Beverly National Corp, which added 8 branches to the company’s network. The company gave Beverly shareholders just under 4.5 million shares, valued at $62 million.
Estimates Jump
Following the report full-year estimates jumped. The Zacks Consensus Estimate for 2010 is up a dime to 63 cents on 6 revisions. There are only 2 upward revisions for 2011 so far, but he consensus is up 1 penny, to 82 cents.
If Danvers meets these projections, year-over-year growth will be 103% this year and another 30% in 2011.
The Chart
Shares are trading at a solid value as well. DNBK will cost you about 16 times forward earnings and the price to book is 0.94 times.
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