We are slightly decreasing our diluted EPS estimate for 2024 by a penny, from $2.20 to $2.19, a 2% gain from 2023's actual diluted EPS of $2.15. Our initial estimate for 2025 is $2.35 per diluted share, representing a 7% gain over our 2024 estimate. We expect moderate gains in net interest income in 2024 and 2025 as solid loan growth, estimated at 8% in 2024 and 8% in 2025, will be partly offset by a lower net interest margin. We have estimated a net interest margin of 3.30% for full-year 2024, down 20 basis from 3.50% in 2023. Our initial NIM estimate for 2025 shows a gain of 5 basis points to 3.35% as deposit cost pressures ameliorate somewhat and better loan pricing improves portfolio yields. We also expect continuing growth in the contribution to revenues and earnings of CPKF's specialty lines of business. For 2024, our estimate for the loan loss provision remains $0.8 million, flat with 2023, as asset quality continues exceptionally strong. Our initial estimate for 2025 is $1.0 million. On the expense side, higher compensation costs due to the increases in full-time equivalent employees from the factoring acquisition, new hires in merchant services, and replacement staffing will be a headwind. However, we expect noncompensation costs to be well controlled and to provide a partial offset to this. CPKF raised the quarterly dividend by 3% to $0.155 per share from $0.15 per share last year and has raised its annual dividend payment every year for the past thirty-one years since 1991. In 2023 for the sixteenth consecutive year, CPKF was included in the American Banker magazine list of the "Top 200 Community Banks".
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24 May 2024
CPKF: Initiating our 2025 Estimates
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CPKF: Initiating our 2025 Estimates
- Published:
24 May 2024 -
Author:
Ann H. Heffron -
Pages:
12 -
We are slightly decreasing our diluted EPS estimate for 2024 by a penny, from $2.20 to $2.19, a 2% gain from 2023's actual diluted EPS of $2.15. Our initial estimate for 2025 is $2.35 per diluted share, representing a 7% gain over our 2024 estimate. We expect moderate gains in net interest income in 2024 and 2025 as solid loan growth, estimated at 8% in 2024 and 8% in 2025, will be partly offset by a lower net interest margin. We have estimated a net interest margin of 3.30% for full-year 2024, down 20 basis from 3.50% in 2023. Our initial NIM estimate for 2025 shows a gain of 5 basis points to 3.35% as deposit cost pressures ameliorate somewhat and better loan pricing improves portfolio yields. We also expect continuing growth in the contribution to revenues and earnings of CPKF's specialty lines of business. For 2024, our estimate for the loan loss provision remains $0.8 million, flat with 2023, as asset quality continues exceptionally strong. Our initial estimate for 2025 is $1.0 million. On the expense side, higher compensation costs due to the increases in full-time equivalent employees from the factoring acquisition, new hires in merchant services, and replacement staffing will be a headwind. However, we expect noncompensation costs to be well controlled and to provide a partial offset to this. CPKF raised the quarterly dividend by 3% to $0.155 per share from $0.15 per share last year and has raised its annual dividend payment every year for the past thirty-one years since 1991. In 2023 for the sixteenth consecutive year, CPKF was included in the American Banker magazine list of the "Top 200 Community Banks".