First Community Bankshares Q3 net income rises 26%

Overview

• US regional bank's Q3 net income rose 26% yr/yr

• Q3 adjusted EPS climbed 11% yr/yr

• Earnings growth driven by increased average earning assets from Hometown Bancshares acquisition

Outlook

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

Result Drivers

• NET INTEREST INCOME - Co said net interest income rose 12% yr/yr, driven by higher average earning assets and lower funding costs

• NONINTEREST INCOME - Co said noninterest income increased 16% yr/yr, mainly due to higher other operating income and service charges and fees

• LOAN PRODUCTION - Co said Q3 loan production rose 41% yr/yr, though total loan portfolio growth was mainly from Hometown Bancshares acquisition

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "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 First Community Bankshares Inc is $45.00, about 6.9% below its October 26 closing price of $48.36

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Oct 27 - First Financial Q3 profit jumps year-over-year on higher interest margin

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• Oct 27 - CF Bankshares Q3 net income jumps 158% 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.)