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

Overview

• U.S. regional bank reported Q3 net income and EPS rose sharply yr/yr

• Company's Q3 net interest income rose 16% yr/yr to a record level

• Q3 included a benefit from credit losses due to a recovered loan

Outlook

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

Result Drivers

• NET INTEREST INCOME - Co said record net interest income and strong net interest margin contributed to Q3 results

• LOAN GROWTH - Organic loan growth driven by commercial construction, real estate, and consumer auto loans

• CREDIT LOSS BENEFIT - Q3 included a benefit from credit losses due to recovery of a previously impaired loan

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", 3 "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 Financial Corp is $85.00, about 11.2% above its October 26 closing price of $76.46

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

Reuters Recommended Reads

• Oct 26 - Lakeland Financial Q3 net income rises on commercial 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.)