First Interstate BancSystem Q3 net income falls on prior branch sales

First Interstate BancSystem

Thu 21:19

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: ID:nBwgzR7ka

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

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

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.)