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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Payment Service Revenue | $16.70 mln | ||
Q3 EPS | $0.65 | ||
Q3 Net Income | $62.20 mln | ||
Q3 Net Interest Income | $206.20 mln | ||
Q3 Credit Loss Provision | -$10.50 mln | ||
Q3 Pretax Profit | $81.90 mln |
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
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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.)