Reported Earnings • Apr 26
First quarter 2023 earnings released: EPS: US$0.56 (vs US$0.47 in 1Q 2022) First quarter 2023 results: EPS: US$0.56 (up from US$0.47 in 1Q 2022). Revenue: US$13.7m (up 9.1% from 1Q 2022). Net income: US$4.18m (up 19% from 1Q 2022). Profit margin: 30% (up from 28% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is expected to decline by 4.8% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 3.3%. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 24% per year. Buying Opportunity • Mar 11
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 1.7%. The fair value is estimated to be US$30.94, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 26%. Revenue is forecast to decline by 6.7% in 2 years. Earnings is forecast to decline by 0.2% in the next 2 years. Reported Earnings • Mar 06
Full year 2022 earnings: Revenues and EPS in line with analyst expectations Full year 2022 results: EPS: US$2.40 (up from US$1.96 in FY 2021). Revenue: US$57.9m (up 12% from FY 2021). Net income: US$18.0m (up 23% from FY 2021). Profit margin: 31% (up from 28% in FY 2021). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.62% (up from 3.48% in FY 2021). Non-performing loans: 0.09% (down from 0.35% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is expected to decline by 4.3% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 7.2%. Over the last 3 years on average, earnings per share has increased by 26% per year and the company’s share price has also increased by 26% per year. Upcoming Dividend • Jan 27
Upcoming dividend of US$0.05 per share at 0.8% yield Eligible shareholders must have bought the stock before 03 February 2023. Payment date: 21 February 2023. Trailing yield: 0.8%. Lower than top quartile of American dividend payers (4.3%). Lower than average of industry peers (3.0%). Reported Earnings • Jan 20
Full year 2022 earnings: Revenues and EPS in line with analyst expectations Full year 2022 results: EPS: US$2.40 (up from US$1.96 in FY 2021). Revenue: US$57.9m (up 12% from FY 2021). Net income: US$18.3m (up 25% from FY 2021). Profit margin: 32% (up from 28% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is expected to decline by 3.5% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 6.1%. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Announcement • Jan 19
Limestone Bancorp, Inc. Declares Quarterly Cash Dividend, Payable on February 21, 2023 Limestone Bancorp, Inc. Board of Directors declared a quarterly cash dividend of $0.05 per common share. The dividend will be paid on February 21, 2023, to shareholders of record as of February 6, 2023. Price Target Changed • Nov 16
Price target increased to US$25.00 Up from US$22.25, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of US$25.05. The company is forecast to post earnings per share of US$2.39 for next year compared to US$1.96 last year. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 3 highly experienced directors. Independent Director Kevin Kooman was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Nov 08
Upcoming dividend of US$0.05 per share Eligible shareholders must have bought the stock before 15 November 2022. Payment date: 05 December 2022. Payout ratio is a comfortable 6.8% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of American dividend payers (4.4%). Lower than average of industry peers (3.0%). Announcement • Nov 02
Limestone Bancorp, Inc. Declares Quarterly Cash Dividend, Payable on December 5, 2022 Limestone Bancorp, Inc. announced that its Board of Directors declared a cash dividend of $0.05 per common share. The dividend will be paid on December 5, 2022, to shareholders of record as of November 16, 2022. Major Estimate Revision • Oct 26
Consensus EPS estimates increase by 14% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from US$47.2m to US$49.0m. EPS estimate increased from US$2.11 to US$2.39 per share. Net income forecast to grow 7.1% next year vs 13% growth forecast for Banks industry in the US. Consensus price target of US$25.00 unchanged from last update. Share price rose 27% to US$24.67 over the past week. Valuation Update With 7 Day Price Move • Oct 26
Investor sentiment improved over the past week After last week's 27% share price gain to US$24.67, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Banks industry in the US. Total returns to shareholders of 65% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$32.12 per share. Announcement • Oct 26
Peoples Bancorp Inc. (NasdaqGS:PEBO) entered into an Agreement and Plan of Merger to acquire Limestone Bancorp, Inc. (NasdaqCM:LMST) for approximately $220 million. Peoples Bancorp Inc. (NasdaqGS:PEBO) entered into an Agreement and Plan of Merger to acquire Limestone Bancorp, Inc. (NasdaqCM:LMST) for approximately $220 million on October 24, 2022. Under the terms of the agreement, each record holder of Limestone common stock will receive 0.90 shares of Peoples common stock. Following the closing, Limestone's wholly-owned banking subsidiary, Limestone Bank, Inc., will be merged with and into Peoples' wholly-owned banking subsidiary, Peoples Bank, Inc. Limestone will pay a termination fee of $8.3 million to Peoples in case Limestone terminates the agreement.
The transaction is subject to approval by federal and state banking regulatory authorities, approval by the shareholders of Limestone and Peoples, effectiveness of the registration statement, Peoples common shares to be issued in the merger shall have been authorized for listing on the NASDAQ – Global Select Market, holders of not more than 5% of the outstanding Limestone Common Stock shall have perfected their dissenters’ rights, and certain other conditions. The transaction has been unanimously approved by the Boards of Directors of both companies. Members of the Board of Directors of Limestone and the holder of Limestone’s non-voting common stock, all of whom collectively hold approximately 19.1% of the outstanding shares of Limestone entered into a support agreement with Peoples. The acquisition is expected to close during the second quarter of 2023. The transaction is expected to be immediately accretive to Peoples’ estimated earnings before one-time costs, with a tangible book value earn back of approximately 2.8 years (inclusive of interest rate marks), and an internal rate of return in excess of 20%.
Equiniti Trust Company acted as exchange agent to Peoples. Raymond James & Associates, Inc. acted as financial advisor and fairness opinion provider to Peoples. Dinsmore & Shohl LLP acted as legal advisor to Peoples. Piper Sandler & Co. acted as financial advisor and fairness opinion provider to Limestone. Cynthia W. Young of Wyatt, Tarrant & Combs, LLP acted as legal advisor to Limestone. Reported Earnings • Oct 22
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: US$0.76 (up from US$0.57 in 3Q 2021). Revenue: US$16.4m (up 19% from 3Q 2021). Net income: US$5.81m (up 36% from 3Q 2021). Profit margin: 36% (up from 31% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) exceeded analyst estimates by 38%. Revenue is expected to decline by 7.5% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 6.6%. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 08
Upcoming dividend of US$0.05 per share Eligible shareholders must have bought the stock before 15 September 2022. Payment date: 01 October 2022. Payout ratio is a comfortable 4.9% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of American dividend payers (4.3%). Lower than average of industry peers (3.2%). Announcement • Aug 18
Limestone Bancorp, Inc. Declares Quarterly Cash Dividend, Payable on October 1, 2022 Limestone Bancorp, Inc. announced that its Board of Directors declared a cash dividend of $0.05 per common share. The dividend will be paid on October 1, 2022, to shareholders of record as of September 16, 2022. Reported Earnings • Jul 22
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: US$0.53 (up from US$0.51 in 2Q 2021). Revenue: US$13.5m (up 3.3% from 2Q 2021). Net income: US$4.04m (up 5.3% from 2Q 2021). Profit margin: 30% (in line with 2Q 2021). Revenue exceeded analyst estimates by 4.8%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Over the next year, revenue is expected to shrink by 9.0% compared to a 15% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 09
Upcoming dividend of US$0.05 per share Eligible shareholders must have bought the stock before 16 June 2022. Payment date: 01 July 2022. Payout ratio is a comfortable 2.5% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of American dividend payers (3.9%). Lower than average of industry peers (2.8%). Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. Independent Director Kevin Kooman was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 21
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: US$0.47 (up from US$0.42 in 1Q 2021). Revenue: US$12.6m (up 3.2% from 1Q 2021). Net income: US$3.58m (up 12% from 1Q 2021). Profit margin: 28% (up from 26% in 1Q 2021). Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) also surpassed analyst estimates by 21%. Over the next year, revenue is expected to shrink by 2.2% compared to a 11% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 11% per year. Announcement • Apr 21
Limestone Bancorp, Inc. Reports Net Loan Charge-Offs for the First Quarter Ended March 31, 2022 Limestone Bancorp, Inc. reported net loan charge-offs for the first quarter ended March 31, 2022. Net loan charge-offs were $86,000 for the first quarter of 2022, compared to net loan charge-offs of $1.9 million for the fourth quarter of 2021, and net loan charge-offs of $38,000 for the first quarter of 2021. Announcement • Apr 16
Limestone Bancorp, Inc., Annual General Meeting, May 18, 2022 Limestone Bancorp, Inc., Annual General Meeting, May 18, 2022, at 09:00 Eastern Daylight. Location: 2500 Eastpoint Parkway Louisville Kentucky United States Agenda: The election of eight nominees as directors; to approve, in a non-binding advisory vote, the compensation of the Company’s named executive officers as disclosed in the accompanying proxy statement; to ratify the appointment of the Company’s independent registered public accounting firm; and to discuss other matters. Upcoming Dividend • Mar 09
Inaugural dividend of US$0.05 per share Eligible shareholders must have bought the stock before 16 March 2022. Payment date: 01 April 2022. The company is not currently making a profit and is not cash flow positive. The company last paid an ordinary dividend in June 2011. The average dividend yield among industry peers is 2.6%. Announcement • Feb 24
Limestone Bancorp, Inc. Declares First Quarter Cash Dividend, Payable on April 1, 2022 Limestone Bancorp, Inc. announced that its Board of Directors declared a cash dividend of $0.05 per common share. The dividend will be paid on April 1, 2022, to shareholders of record as of March 17, 2022. Major Estimate Revision • Jan 27
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from US$41.5m to US$43.2m. EPS estimate increased from US$1.45 to US$1.61 per share. Net income forecast to shrink 17% next year vs 7.7% decline forecast for Banks industry in the US. Consensus price target up from US$20.25 to US$21.25. Share price was steady at US$19.40 over the past week. Price Target Changed • Jan 23
Price target increased to US$20.75 Up from US$19.00, the current price target is an average from 2 analysts. New target price is 7.7% above last closing price of US$19.28. Stock is up 40% over the past year. The company is forecast to post earnings per share of US$1.54 for next year compared to US$1.96 last year. Reported Earnings • Jan 21
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: US$1.96 (up from US$1.20 in FY 2020). Revenue: US$51.5m (up 20% from FY 2020). Net income: US$14.9m (up 67% from FY 2020). Profit margin: 29% (up from 21% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.8%. Over the next year, revenue is expected to shrink by 19% compared to a 4.5% growth forecast for the banks industry in the US. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 10% per year. Board Change • Nov 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 2 highly experienced directors. Independent Director Kevin Kooman was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 22
Third quarter 2021 earnings released: EPS US$0.58 (vs US$0.28 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$13.8m (up 33% from 3Q 2020). Net income: US$4.34m (up 112% from 3Q 2020). Profit margin: 32% (up from 20% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Board Change • Oct 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 2 highly experienced directors. Independent Director Kevin Kooman was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Aug 27
Price target increased to US$19.00 Up from US$17.50, the current price target is an average from 2 analysts. New target price is 10.0% above last closing price of US$17.28. Stock is up 61% over the past year. Major Estimate Revision • Jul 28
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate increased from US$1.63 to US$1.81. Revenue forecast unchanged at US$43.3m. Net income forecast to grow 1.0% next year vs 1.8% growth forecast for Banks industry in the US. Consensus price target of US$18.50 unchanged from last update. Share price was steady at US$16.85 over the past week. Reported Earnings • Jul 22
Second quarter 2021 earnings released: EPS US$0.51 (vs US$0.27 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$13.0m (up 23% from 2Q 2020). Net income: US$3.90m (up 98% from 2Q 2020). Profit margin: 30% (up from 19% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Major Estimate Revision • Apr 29
Consensus EPS estimates increase to US$1.63 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from US$41.2m to US$44.1m. EPS estimate increased from US$1.09 to US$1.63 per share. Net income forecast to grow 15% next year vs 8.2% growth forecast for Banks industry in the US. Consensus price target up from US$17.00 to US$17.50. Share price was steady at US$15.70 over the past week. Reported Earnings • Apr 24
First quarter 2021 earnings released: EPS US$0.42 (vs US$0.25 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$12.2m (up 17% from 1Q 2020). Net income: US$3.22m (up 77% from 1Q 2020). Profit margin: 26% (up from 18% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 72 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 03
Full year 2020 earnings released: EPS US$1.20 (vs US$1.41 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: US$43.0m (up 4.3% from FY 2019). Net income: US$8.94m (down 14% from FY 2019). Profit margin: 21% (down from 25% in FY 2019). The decrease in margin was driven by higher expenses. Net interest margin (NIM): 3.36% (down from 3.40% in FY 2019). Non-performing loans: 0.22% (no change from 0.22% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 71% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Mar 03
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 21%. Over the next year, revenue is expected to shrink by 4.3% compared to a 18% growth forecast for the Banks industry in the US. Is New 90 Day High Low • Feb 24
New 90-day high: US$14.87 The company is up 14% from its price of US$13.04 on 25 November 2020. The American market is up 5.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Banks industry, which is up 24% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$26.80 per share. Major Estimate Revision • Jan 27
Analysts increase EPS estimates to US$1.09 The 2021 consensus revenue estimate increased from US$40.1m to US$41.2m. The earnings per share estimate also received an upgrade from US$0.70 to US$1.09 for the same period. Net income is expected to shrink by 10% next year compared to 8.0% growth forecast for the Banks industry in the US . The consensus price target of US$16.00 was unchanged from the last update. Share price is up 5.7% to US$14.00 over the past week. Analyst Estimate Surprise Post Earnings • Jan 23
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 21%. Over the next year, revenue is expected to shrink by 7.1% compared to a 17% growth forecast for the Banks industry in the US. Reported Earnings • Jan 22
Full year 2020 earnings released: EPS US$1.20 The company reported a soft full year result with weaker earnings and profit margins, although revenues were improved. Full year 2020 results: Revenue: US$43.0m (up 4.3% from FY 2019). Net income: US$9.01m (down 14% from FY 2019). Profit margin: 21% (down from 25% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 71% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Dec 09
Market bids up stock over the past week After last week's 16% share price gain to US$14.46, the stock is trading at a trailing P/E ratio of 14.1x, up from the previous P/E ratio of 12.2x. This compares to an average P/E of 12x in the Banks industry in the US. Total returns to shareholders over the past three years are 2.2%. Is New 90 Day High Low • Dec 05
New 90-day high: US$13.24 The company is up 21% from its price of US$10.90 on 04 September 2020. The American market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$22.85 per share. Is New 90 Day High Low • Nov 10
New 90-day high: US$11.24 The company is up 5.0% from its price of US$10.75 on 12 August 2020. The American market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Banks industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$23.50 per share. Reported Earnings • Nov 02
Third quarter earnings released Over the last 12 months the company has reported total profits of US$7.59m, down 31% from the prior year. Total revenue was US$41.9m over the last 12 months, largely unchanged from the prior year. Analyst Estimate Surprise Post Earnings • Nov 02
Third-quarter earnings released: Earnings beat expectations Earnings per share (EPS) surpassed analyst estimates by 107% at US$0.28. Revenue is expected to shrink by 4.5% over the next year, compared to a 18% growth forecast for the Banks industry in the US. Major Estimate Revision • Oct 28
Analysts update estimates The 2020 consensus revenue estimate was lowered from US$44.1m to US$40.1m. Earnings per share (EPS) increased from US$0.78 to US$0.95 for the same period. Net income is expected to shrink by 25% next year compared to 1.1% decline forecast for the Banks industry in the US. The consensus price target of US$12.50 was unchanged from the last update. Share price is down by 3.7% to US$10.46 over the past week. Analyst Estimate Surprise Post Earnings • Oct 24
Third-quarter earnings released: Earnings beat expectations Earnings per share (EPS) surpassed analyst estimates by 107% at US$0.28. Revenue is forecast to grow 5.1% over the next year, compared to a 19% growth forecast for the Banks industry in the US. Reported Earnings • Oct 23
Third quarter earnings released Over the last 12 months the company has reported total profits of US$7.55m, down 32% from the prior year. Total revenue was US$41.9m over the last 12 months, largely unchanged from the prior year. Announcement • Jul 23
Limestone Bancorp, Inc. announced a financing transaction Limestone Bancorp, Inc. (NasdaqCM:LMST) announced that it will receive $8,000,000 in funding on July 22, 2020. The company will issue non-convertible debt in the transaction. The minimum investment accepted from any outside investor is $250,000. The company will issue securities pursuant to exemption provided under Regulation D. 