Overview

• US community bank's Q2 net income rose 25% yr/yr to $3.3 mln

• Net income declined from Q1 due to higher loan loss provision on loan growth

• Net interest margin improved to 4.01% from 3.65% a year earlier

Outlook

• Company did not provide specific guidance or forecasts for future periods

Result Drivers

• LOAN GROWTH - Loan growth necessitated a larger provision; the bank's growing loan book also contributed to rising loan interest income over recent quarters

• CREDIT LOSS PROVISION - Higher loan loss provision of $1.0 mln in Q2, up from $23,000 in Q1, reduced net income compared to the prior quarter

• NET INTEREST MARGIN IMPROVEMENT - Net interest margin increased to 4.01% in Q2, up from 3.65% a year earlier, due to steady loan yield improvement and lower cost of funds

Company press release: ID:nACSr5NRwa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Net Income		$3.30 mln

Reuters Recommended Reads

• July 22 - Five Star Bancorp Q2 net income rises on loan growth

• July 22 - Eagle Bancorp Q2 net income falls on higher credit loss provision

• July 22 - Cathay General Bancorp Q2 net income rises on higher net interest margin

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