Company expects continued loan growth, supported by economic expansion through 2026
Management expects share repurchases to be limited due to pending merger with First Hawaiian Bank
Overview
Regional bank's preliminary Q2 net income and EPS rose yr/yr on higher loan growth
Net interest income increased 8.2% yr/yr, driven by higher lending income
Deposit balances declined slightly, while merger with First Hawaiian Bank remains a focus
Result Drivers
Loan growth - Loan balances increased $242.9 mln from the prior qtr and $352.1 mln from a yr ago, supporting higher net interest income
Net interest margin - Net interest income and margin expanded due to higher yields on earning assets and continued loan repricing, per CFO Peter Wiese
Credit loss provision - Lower provision for credit losses, reflecting stable credit quality and economic conditions, contributed to results
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
TCBK•
