First Interstate Q2 net income rises
Overview
First Interstate Q2 net income rises to $71.7 mln from $60.0 mln last year
Net interest margin improves to 3.30%, driven by lower interest expenses
Outsourcing of credit card portfolio results in $4.3 mln gain
Outlook
Company focuses on organic growth and managing expenses prudently
First Interstate highlights strong liquidity and capital levels for future growth
Company does not provide specific forward-looking financial guidance in its press release
Result Drivers
NET INTEREST MARGIN - Increase driven by lower interest expenses and decreased borrowings
CREDIT CARD OUTSOURCING -Completed the outsourcing of our consumer credit card portfolio resulting in the sale of $74.2 million of consumer credit card loans and recognition of a $4.3 million gain
CRITICIZED LOANS - Increase primarily due to downgrades in commercial real estate portfolio
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | $17.80 mln | ||
Q2 EPS | $0.69 | ||
Q2 Net Income | $71.70 mln | ||
Q2 Net Interest Income | $207.20 mln | ||
Q2 Credit Loss Provision | -$300,000 | ||
Q2 Pretax Profit | $93.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and 2 "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 $32.00, about 7.3% above its July 28 closing price of $29.65
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release:
