Financial Institutions Q3 net interest income rises on strong commercial lending activity

Overview

• US regional bank's Q3 net income and EPS were flat year-over-year

• Net interest income for Q3 rose 4.8% year-over-year

• Company repurchased 185,833 shares during the quarter

Outlook

• Company says net charge-off ratio remains within full-year guidance

• Company remains focused on credit-disciplined loan growth in Upstate New York

• Company says strong capital levels support loan growth and investments

Result Drivers

• COMMERCIAL LENDING - Co said loan growth was driven by strong commercial lending activity in Western and Central New York markets

• NET INTEREST MARGIN - Net interest margin rose due to lower interest-bearing liability costs, supporting higher net interest income

• INVESTMENT ADVISORY - Growth in investment advisory income reflected new business and market performance

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 Financial Institutions Inc is $45.00, about 10.4% above its October 28 closing price of $40.77

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Oct 29 - Botetourt Bankshares Q3 net income rises on steady asset yields

• Oct 29 - West Bancorporation Q3 net income rises on higher net interest income

• Oct 29 - Cullen/Frost Bankers Q3 net income rises on loan growth

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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.)