Overview

• US community bank's Q2 net income rose 46% yr/yr, EPS up 48%

• Net interest income grew 36% yr/yr; net interest margin expanded to 4.09%

• Q2 results aided by full recovery of past due interest on nonaccrual loan

Outlook

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

Result Drivers

• NET INTEREST MARGIN EXPANSION - Margin improvement was partly due to full recovery of past due interest on a nonaccrual loan, which also boosted credit quality, per CEO Lauren Ranalli

• LOAN AND DEPOSIT GROWTH - Q2 loan growth was driven by commercial real estate lending, while deposit growth was supported by higher noninterest-bearing and money market balances

• CREDIT QUALITY IMPROVEMENT - Non-performing assets fell after the successful resolution and full collection of a $2.3 mln nonaccrual commercial loan

Company press release: ID:nPn1p0JY9a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$0.93
Q2 Net Income		$2.80 mln
Q2 Net Interest Income		$8.10 mln
Q2 Net Interest Margin		4.09%

Reuters Recommended Reads

• July 22 - John Marshall Bancorp Q2 net income rises as interest margin expands

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• July 23 - Dime Community Bancshares Q2 revenue hits record on loan growth

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