Ponce Financial Group Q2 profit rises on dividend income

Overview

• U.S. regional bank's Q2 net income available to common stockholders rose yr/yr

• Net interest income for Q2 increased 23% from a year earlier

• Company saw higher non-interest expense and lower non-interest income in Q2

Outlook

• Company says it will continue investing in technology and personnel to improve efficiency

• Company expects to meet regulatory conditions for repurchasing preferred stock under ECIP agreement

• Company says capital ratios remain well above regulatory requirements

Result Drivers

• NET INTEREST INCOME - Q2 net interest income rose due to higher interest and dividend income from loans, offset by increased interest expense

• NON-INTEREST INCOME DECLINE - Q2 non-interest income fell, mainly due to lower late and prepayment charges and absence of grant income recognized in the prior year

• HIGHER EXPENSES - Q2 non-interest expense increased, driven by higher compensation and benefits

Company press release: ID:nGNXgH1RD

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Ponce Financial Group Inc is $24.00, about 18.8% above its July 24 closing price of $20.20

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• July 24 - Logansport Financial Q2 profit rises on stronger net interest income

• July 24 - BV Financial Q2 net interest income rises on higher yields

• July 24 - Republic Bancorp Q2 profit rises on interest income growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)