Community Financial System Q3 EPS rises on higher net interest income

Overview

• US diversified financial services firm's Q3 EPS was $1.27

• Q3 net interest income totaled $143.5 mln

Outlook

• Company did not provide specific financial guidance for future quarters or full-year results in the press release

Result Drivers

• NET INTEREST MARGIN EXPANSION – Lower funding costs, organic loan growth and redeployment of Treasury-sale proceeds into debt repayment lifted net interest income 12% yr/yr

• FEE-INCOME GROWTH – Higher asset values, ClearPoint acquisition revenue, debit interchange fees and seasonal insurance renewals supported noninterest revenues

Company press release:

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", 5 "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 Community Financial System Inc is $68.50, about 9.9% above its October 26 closing price of $62.32

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 26 - Northwest Bancshares Q3 adjusted EPS beats estimates on C&I loan growth

• Oct 26 - German American Bancorp Q3 net income rises on higher yields and margin expansion

• Oct 26 - Business First Bancshares Q3 net income rises on loan and deposit 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.)