2Q26 Earnings Review: Raising Estimates After a Strong Quarter

研报英文原文证据摘录

2Q26 Earnings Review: Raising Estimates After a Strong Quarter

iggest contributor here as WASH saw the benefit of 52-Week High / Low US$37.50 / US$25.23

Avg Daily Vol (000) 197 the institutional banking team brought on earlier this year. Growth in this segment can

Div Yield 5.71%

be lumpy (3Q is expected to see a slowdown) and overall management reiterated its Total Assets ($mil) 6,548

mid-single-digit guide on loan growth for the year. Included in the assumptions here is ROE 11.61%

a modest pick-up in CRE growth following elevated payoff activity through the 1H of the ROTCE 13.24%

year. EOP deposit growth was really impressive with balances increasing 3.8% L/Q and Shares Out (mil) 19.1

while money market was a big contributor, the bank also saw strong growth within NIB. Div (ann) US$2.24

Resultantly, the L/D ratio fell to 95% from 97% at 3/31. Institutional Ownership 67.1%

Insider Ownership 1.9%

• NIM expansion expected to continue, though at a more moderate pace. The bank's Fiscal Year End Dec

NIM increased 10 bps L/Q to 2.73%, better than the 5 bps of expansion we had modeled, Price Performance - 1 Year

and helped out by 2 months' benefit from a swap termination. Total cost of funds declined

6 bps L/Q to 2.32% while AEA yields increased 4 bps L/Q to 4.90%. With average USD40

balance sheet growth coming in softer than anticipated (loans/AEAs declined L/Q), NII 38

came in a penny below our model though the strong loan growth into period-end helps 36

out the forward NII picture. In terms of our model, we forecast 3 bps of NIM expansion 34

for 3Q and then another 5 bps of pick-up for 4Q, which largely comes in-line with 32

management expectations. 30

Please see pg. 2 for our continued thoughts 28

RISKS TO ACHIEVEMENT OF PT & RECOMMENDATION 26