Bank holding firm Ponce Financial's Q4 net income rises

Overview

• U.S. bank holding company's Q4 net income rose to $9.9 mln, driven by higher interest income

• Net interest income for Q4 rose 10.64% from prior quarter

• Net interest margin for Q4 improved to 3.57% from 3.30% in Q3

Outlook

• Company expects dividend yield to continue at 0.50% level later this year

• Company close to achieving 16 quarters of deep impact lending percentage over 60%

Result Drivers

• NET INTEREST INCOME - Increased by $2.7 mln from prior quarter due to higher interest and dividend income and reduced interest expenses

• NON-INTEREST INCOME - Rose by $2.0 mln from prior quarter, driven by valuation adjustments in investments and higher late and prepayment charges

• OPERATING EXPENSES - Remained flat compared to prior quarter, aiding profitability

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 $18.50, about 12.5% above its January 26 closing price of $16.44

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX24msN7

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