Commercial BancGroup Q2 net income rises, driven by loan growth

Overview

• U.S. regional bank's Q2 net income rose yr/yr, with core EPS flat at $0.75

• Net interest income for Q2 increased yr/yr to $21.5 mln

• Loans outstanding rose 8.3% and deposits grew 1.2% from a year earlier

Outlook

• Company did not provide specific guidance or outlook for future periods in the press release

Result Drivers

• NET INTEREST INCOME - Q2 net interest income after provision for credit losses rose 5.3% yr/yr, driven by loan growth and an 18 basis point increase in net interest margin

• NON-INTEREST INCOME - Non-interest income grew 19.2% yr/yr, mainly due to higher customer service and ATM fees

• LOAN GROWTH - Loans outstanding increased $149 mln, or 8.3%, from a year earlier, supporting revenue growth

Company press release: ID:nACSCRkNwa

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 Commercial BancGroup Inc is $34.00, about 2.7% above its July 24 closing price of $33.11

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

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(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.)