First Financial Q2 net interest income rises on loan growth

Overview

• US regional bank's Q2 net income and EPS rose yr/yr on loan growth and acquisition

• Net interest income and margin increased, supported by higher average loans and deposits

• Company completed CedarStone Financial acquisition, adding $292 mln in loans and $313 mln in deposits

Outlook

• Company did not provide specific guidance or outlook for future quarters in its press release

Result Drivers

• LOAN GROWTH - Co said organic loan growth, especially in commercial construction, commercial real estate, and consumer auto loans, contributed to results

• ACQUISITION IMPACT - CedarStone Financial acquisition added $292 mln in loans and $313 mln in deposits in Q2

• NET INTEREST MARGIN - Co said strong net interest margin of 4.33% supported profitability

Company press release: ID:nGNX6rmvXJ

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", 2 "hold" and no "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 Financial Corp is $74.50, about 4.1% below its July 27 closing price of $77.67

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 27 - Park National Q2 net income rises 22% on loan growth

• July 27 - NBT Bancorp Q2 net income more than doubles on Evans acquisition

• July 27 - Commercial BancGroup Q2 net income rises, driven 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.)