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/Mis Actual Consensu

s s

Estimate

Q2 $17.80

Revenue mln

Q2 EPS $0.69

Q2 Net $71.70

Income mln

Q2 Net $207.20

Interest mln

Income

Q2 -$300,00

Credit 0

Loss

Provisio

n

Q2 $93.50

Pretax mln

Profit

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 ( FIBK ) 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:

(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.)