Upcoming AWS Coverage on First Interstate BancSystem Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 9, 2017 / Active Wall St. announces its post-earnings coverage on SVB Financial Group (NASDAQ: SIVB). The Company reported its financial results for the first quarter fiscal 2017 (Q1 FY17) on April 27, 2017. The Santa Clara, California-based Company's GAAP total revenue and diluted earnings per share grew on a year-over-year basis, outperforming market consensus estimates. Register with us now for your free membership at:

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One of SVB Financial Group's competitors within the Regional - Pacific Banks space, First Interstate BancSystem, Inc. (NASDAQ: FIBK), reported its first quarter earnings on April 25, 2017. AWS will be initiating a research report on First Interstate BancSystem in the coming days.

Today, AWS is promoting its earnings coverage on SIVB; touching on FIBK. Get our free coverage by signing up to:

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Earnings Reviewed

During Q1 FY17, SVB Financial's GAAP total revenue came in at $427.65 million, which was above the $367.56 million reported in the year ago quarter and market consensus estimates of $424 million. The Company's total interest income grew to $320.93 million in Q1 FY17 from $291.66 million in Q1 FY16. The Company's total interest expenses increased to $10.93 million in Q1 FY17 from $10.24 million in Q1 FY16.

SVB Financial's net interest income also rose during the reported quarter to $309.99 million from $281.42 million in Q1 FY16. The Company reported provision for credit losses of $30.73 million in Q1 FY17, down from $33.48 million in Q1 FY16. The Company's net interest income after provision for credit losses increased to $279.26 million in Q1 FY17 from $247.95 million in the prior year's same quarter. Furthermore, total non-interest income for the reported quarter came in at $117.66 million, up from $86.13 million in the year ago same quarter.

The financial services Company reported net income available to common stockholders of $101.48 million, or $1.91 per diluted share, in Q1 FY17 compared to $79.17 million, or $1.52 per diluted share, in Q1 FY16. The Company's quarterly earnings per diluted share also beat market consensus estimates of $1.86 per diluted share.

Earnings Metrics

During the reported quarter, the Company's return on average assets increased to 0.91% from 0.72% in the previous year's comparable quarter. The return on average SVB stockholders' equity came in at 11.03% in Q1 FY17 compared to 9.59% reported in the year ago same period.

The SVB Financial's GAAP operating efficiency ratio was 55.57% in Q1 FY17 compared to 55.47% in Q1 FY16. The Company's net interest margin rose during Q1 FY17 to 2.88% from 2.67% in Q1 FY16. The tangible common equity to tangible assets ratio also grew to 8.11% as on March 31, 2017, from 7.76% as on March 31, 2016. The Company's common equity tier 1 risk-based capital ratio was 13.05% as on March 31, 2017, compared to 12.38% as on March 31, 2016. Furthermore, total risk-based capital ratio stood at 14.45% as on March 31, 2017, versus 13.90% as on March 31, 2016.

Balance Sheet Analyzed

SVB Financial's average loans, net of unearned income at the end of Q1 FY16 was $20.07 billion compared to $17.01 billion at the end of last year's comparable quarter. In Q1 FY14, the yield on average loans was 4.59%, compared to 4.68% in Q1 FY16. Average total assets for the quarter ended March 31, 2017 were $45.30 billion versus $44.19 billion recorded in the prior year's same period. Meanwhile, average total interest-bearing deposits fell to $7.25 billion in Q1 FY17 from $8.05 billion in the last year comparable quarter.

The Company had total non-performing loans of $138.82 million at March 31, 2017, compared to $113.97 million as on March 31, 2016. Non-performing assets as a percent of total gross loans was 0.68% as on March 31, 2017, versus 0.64% as on March 31, 2016.

Outlook

In its guidance for full year FY17, SVB Financial's management expects average loan balances growth in high teens and average deposit balances growth in mid-single digits. The Company forecasts net interest income to increase at a percentage rate in the high teens in FY17. Furthermore, net interest margin for full year FY17 is anticipated to be between 2.90% and 3.10%.

Stock Performance

On Monday, May 08, 2017, SVB Financial Group's share price finished yesterday's trading session at $183.94, marginally up 0.71%. A total volume of 365.05 thousand shares exchanged hands. The stock has surged 56.01% and 90.08% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have rallied 7.15%. The stock is trading at a PE ratio of 23.90 and currently has a market cap of $9.61 billion.

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SOURCE: Active Wall Street