First Bank Q3 net income rises, margin expands on higher loan yields

By Reuters News


Overview

  • US regional bank's Q3 net income and EPS rose from prior quarter and year-ago period

  • Net interest income and margin expanded, driven by loan and deposit growth

  • Company raised quarterly dividend by 33% and authorized new $24 mln share buyback program


Outlook

  • First Bank anticipates its effective tax rate will be about 23% to 25%

  • Company sees opportunity for investor-owned CRE growth as CREI to capital ratio has declined

  • First Bank plans to manage deposit costs and deepen core customer relationships


Result Drivers

  • LOAN AND DEPOSIT GROWTH - Co said broad-based loan and deposit growth contributed to higher net income and net interest margin

  • NET INTEREST MARGIN EXPANSION - Co attributed margin improvement to higher loan yields, paydown of higher-cost borrowings and favorable asset mix

  • EXPENSE CONTAINMENT - Co said efficiency ratio improved due to well-contained expense growth and cost containment efforts


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.49

Q3 Net Income

$12.17 mln

Q3 Net Interest Income

$36.77 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 FIRST BANK (Hamilton) is $19.00, about 6.9% above its October 21 closing price of $17.78

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 21 - First Bancorp Q3 net income rises 17.5%

  • Oct 22 - United Bankshares Q3 EPS beats estimates, helped by loan growth

  • Oct 21 - Pinnacle Financial Partners Q3 adjusted profit beats estimates on loan, fee income growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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