First Interstate BancSystem Q3 net income falls on prior branch sales

Overview

• U.S. community bank's Q3 net income and EPS declined yr/yr, partly due to prior branch sales

• Net interest margin rose both sequentially and yr/yr

• Company repurchased $76.3 mln in stock during Q3 as part of ongoing buyback program

Outlook

• Company did not provide specific financial guidance for future quarters or the full year

Result Drivers

• HIGHER ASSET YIELDS - Co said net interest income rose in Q3 due to higher yields on interest earning assets and lower interest expense on time deposits

• LOWER LOAN BALANCES - Co said reduced loan balances partially offset net interest income growth

• BRANCH SALE IMPACT - Co said lower noninterest income in Q3 reflected absence of prior quarter branch sale gains

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 3 "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 Interstate BancSystem, Inc. is $37.50, about 5.1% above its October 21 closing price of $35.67

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality

• Oct 22 - Huntington Bancshares Q3 EPS unchanged, net interest income up

• Oct 22 - United Bankshares Q3 EPS beats estimates, helped by 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.)