On Jun 20, Zacks Investment Research upgraded
First Interstate Bancsystem Inc.
) to a Zacks Rank #1 (Strong Buy).
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Why the Upgrade?
First Interstate Bancsystem has been witnessing rising earnings
estimates on the back of strong first-quarter 2013 results.
Moreover, this well-known commercial and consumer banking
services provider delivered positive earnings surprises in the
last 3 quarters with an average beat of 17.9%. The long-term
expected earnings growth rate for this stock is 7.5%.
First Interstate Bancsystem reported its first-quarter results on
Apr 22 with earnings per share of 46 cents, substantially beating
the Zacks Consensus Estimate of 35 cents by 31.4% and the
year-ago earnings of 26 cents by 76.9%. Robust results for the
reported quarter were primarily aided by higher non-interest
income, reduced non-interest expenses and lower provision for
Non-interest income jumped 9% year over year to $28.8 million.
Non-interest expense dipped 1.2% from the year-ago period to
$56.7 million. Provision for loan losses stood at $0.5 million
compared with $11.3 million in the prior-year quarter. However,
on the downside, net interest income decreased 2.3% to $60.4
Credit quality continues to exhibit an improvement. Nonperforming
loans were $100.5 million, waning 45.9% year over year.
Nonperforming assets were $133.0 million, down 42.3% year over
Following first-quarter 2013 results for First Interstate
Bancsystem, the Zacks Consensus Estimate for 2013 increased 8.9%
to $1.59 per share over the last 60 days. For 2014, the Zacks
Consensus Estimate advanced 2.6% to $1.60 per share.
Other Stocks to Consider
Besides First Interstate Bancsystem, other stocks in the same
sector with a Zacks Rank #1 include
Enterprise Financial Services Corp.
Old Second Bancorp Inc.
First Business Financial Services, Inc.