OTCPK:NEFB

Stock Analysis Report

Executive Summary

Neffs Bancorp, Inc. operates as a bank holding company for The Neffs National Bank that provides a range of financial services to individuals, small businesses, and corporate customers in Lehigh County, Pennsylvania.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Neffs Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NEFB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

NEFB

-7.0%

US Banks

-2.6%

US Market


1 Year Return

-17.6%

NEFB

-32.9%

US Banks

-13.3%

US Market

Return vs Industry: NEFB exceeded the US Banks industry which returned -32.9% over the past year.

Return vs Market: NEFB underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

NEFBIndustryMarket
7 Day0%-7.0%-2.6%
30 Day-26.3%-24.6%-15.2%
90 Day-24.1%-41.9%-22.2%
1 Year-16.1%-17.6%-30.8%-32.9%-11.5%-13.3%
3 Year10.8%4.2%-21.4%-27.3%13.2%5.7%
5 Year37.1%22.8%2.7%-9.2%31.8%17.2%

Price Volatility Vs. Market

How volatile is Neffs Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Neffs Bancorp undervalued compared to its fair value and its price relative to the market?

27.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEFB ($350) is trading below our estimate of fair value ($483.84)

Significantly Below Fair Value: NEFB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NEFB is poor value based on its PE Ratio (12.5x) compared to the Banks industry average (8.6x).

PE vs Market: NEFB is poor value based on its PE Ratio (12.5x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NEFB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NEFB is overvalued based on its PB Ratio (0.8x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Neffs Bancorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-2.8%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Neffs Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine Neffs Bancorp's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Neffs Bancorp's filings and announcements here.
  • Explore growth companies in the Banks industry.

Past Performance

How has Neffs Bancorp performed over the past 5 years?

15.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: NEFB has high quality earnings.

Growing Profit Margin: NEFB's current net profit margins (41.3%) are higher than last year (37.6%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if NEFB's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare NEFB's past year earnings growth to its 5-year average.

Earnings vs Industry: NEFB earnings growth over the past year (15.6%) exceeded the Banks industry 10.9%.


Return on Equity

High ROE: NEFB's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Neffs Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: NEFB's level of assets compared to its equity is low.

Allowance for Bad Loans: NEFB has a sufficient allowance for bad loans.

Low Risk Liabilities: NEFB's liabilities are made up of primarily low risk sources of funding.

Loan Level: NEFB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NEFB's loans are broadly funded by customer deposits.

Level of Bad Loans: NEFB has an appropriate level of bad loans (0.77%)


Next Steps

Dividend

What is Neffs Bancorp's current dividend yield, its reliability and sustainability?

2.21%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NEFB's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: NEFB's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (5.66%).


Stability and Growth of Payments

Stable Dividend: NEFB's dividends per share have been stable in the past 10 years.

Growing Dividend: NEFB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.7%), NEFB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

15.3yrs

Average board tenure


CEO

John Remaley (83yo)

34.25s

Tenure

US$14,710

Compensation

Mr. John J. Remaley has been the President and Chief Executive Officer of Neffs Bancorp Inc., holding company of The Neffs National Bank since 1986. Mr. Remaley served as the President of Neffs National Ba ...


Board Members

NamePositionTenureCompensationOwnership
John Remaley
Chairman34.25yrsUS$14.71kno data
Kevin Schmidt
VP & Director16.25yrsUS$129.33kno data
John Simock
Independent Director23.25yrsUS$14.33kno data
Robert Heintzelman
Independent Director21.25yrsUS$13.85kno data
John Sharkey
Independent Director14.33yrsUS$13.18kno data
Duane Schleicher
Independent Director14.33yrsUS$13.23kno data
Dean Snyder
Independent Director10.5yrsUS$13.31kno data

15.3yrs

Average Tenure

63yo

Average Age

Experienced Board: NEFB's board of directors are seasoned and experienced ( 15.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Neffs Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Neffs Bancorp, Inc.
  • Ticker: NEFB
  • Exchange: OTCPK
  • Founded: 1923
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$55.847m
  • Shares outstanding: 159.56k
  • Website: https://www.neffsnatl.com

Location

  • Neffs Bancorp, Inc.
  • 5629 PA Route 873
  • Post Office Box 10
  • Neffs
  • Pennsylvania
  • 18065
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEFBOTCPK (Pink Sheets LLC)YesCommon StockUSUSDApr 1993

Biography

Neffs Bancorp, Inc. operates as a bank holding company for The Neffs National Bank that provides a range of financial services to individuals, small businesses, and corporate customers in Lehigh County, Pennsylvania. It accepts various deposit products, including checking accounts, savings and club accounts, money market demand accounts, and certificates of deposit, and retirement accounts. The company also offers consumer credit products, such as personal, automobile, home equity, and real estate mortgages; and commercial credit products, including vehicle and equipment loans, working capital loans, mortgages/equity products, and lines of credit. In addition, it provides tax, estate, and investment planning services; other services, such as ATM, re-order checks, coin counter, direct deposit, drive thru banking, credit card, night depository, overdraft transfer protection, safe deposit box, and wire transfer services; and online banking services. Neffs Bancorp, Inc. was founded in 1923 and is based in Neffs, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 03:51
End of Day Share Price2020/03/20 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.