American Business Bank Q2 net income rises on loan growth

Overview

• US commercial bank's Q2 net income rose 25% yr/yr to record level

• Net interest income for Q2 up 15% from prior year quarter

• Company repurchased 31,500 shares and paid $0.30/share quarterly dividend

Outlook

• Company anticipates loan and deposit growth in the second half of the year

• American Business Bank expects overall net loan growth to be lower this year than last year

Result Drivers

• LOAN GROWTH AND REPRICING - Co said Q2 benefited from loan growth and continued repricing at higher rates than legacy portfolio

• DEPOSIT MIX AND COST - Increase in average loan balances and a positive mix change in deposits, along with lower deposit costs, contributed to higher net interest income

• NON-INTEREST INCOME - Higher valuation of corporate-owned life insurance policies drove increase in non-interest income

Company press release: ID:nBw5kBKQma

Key Details

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)