Overview

• California community bank's Q2 net income and EPS declined yr/yr and sequentially

• EPS fell to $1.16, impacted by $0.12 from early sub debt redemption

• On July 15, company raised quarterly dividend by $0.01 to $0.25 per share

Outlook

• Company did not provide specific guidance for the current qtr or full yr in the press release

Result Drivers

• SUB DEBT REDEMPTION - Early redemption of subordinated debt increased interest expense and reduced EPS by $0.12 in Q2

• LOAN AND DEPOSIT GROWTH - Higher loan and deposit balances, especially in commercial and CRE loans, supported interest income

• NONINTEREST INCOME DROP - Absence of Q1 gain on sale of non-core loans and special dividend led to lower noninterest income in Q2

Company press release: ID:nGNX41kVtZ

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$1.16
Q2 Net Interest Income		$33.10 mln
Q2 Net Interest Margin		4.92%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for West Coast Community Bancorp is $57.00, about 5.2% above its July 17 closing price of $54.19

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 20 - RBB Bancorp Q2 net interest income falls from prior quarter on higher interest expense

• July 20 - MainStreet Bancshares Q2 profit rises on higher interest margin

• July 21 - Capital City Bank's Q2 net income rises, loan balances dip

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