Princeton Bancorp's Q2 net interest income rises as interest expenses decreased

Overview

• U.S. community bank's Q2 net income and EPS rose sharply year-over-year and sequentially

• Net interest income grew 6% from Q1, aided by lower interest expense and higher interest income

• Company recorded a reversal of credit losses, supporting improved profitability

Outlook

• Company did not provide specific guidance or outlook for future quarters or full year

Result Drivers

• NET INTEREST INCOME - Growth in net interest income was driven by a decrease in interest expense and an increase in interest income, aided by lower cost of funds and reduced interest-bearing deposits

• CREDIT LOSS REVERSAL - A reversal of credit losses contributed to higher net income compared to both prior quarter and prior year

Company press release: ID:nBw9pv5lxa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "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 Princeton Bancorp Inc is $39.25, about 4.1% above its July 22 closing price of $37.69

• 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 23 - United Bancorp Q2 net interest income rises, partly by deposit growth

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• July 23 - Farmers and Merchants Bank Maryland Q2 profit rises on higher interest income

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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.)