Ponce Financial's Q2 profit beats estimates

Overview

• Ponce Financial Q2 net income rises slightly compared to prior quarter

• Net interest income for Q2 grows 36% yr/yr, boosting net interest margin

• EPS for Q2 beats analyst expectations, per LSEG data

Outlook

• Company aims for 60% deep impact lending over 16 quarters

• Ponce Financial sees progress in U.S. Treasury's investment program

Result Drivers

• NET INTEREST INCOME - Increased by $2.2 mln from prior qtr and $6.5 mln yr/yr, driven by higher interest and dividend income

• NET INTEREST MARGIN - Improved to 3.27% from 2.98% in prior qtr, reflecting high-yielding construction loans and reduced borrowing costs

• CREDIT LOSSES - Provision for credit losses increased, impacting net income

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong 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 $15.00, about 8.5% above its July 24 closing price of $13.72

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nGNX6plJVS