FISI
Here are my thoughts.
1) FISI earned .84 which is solid. It is interesting to see Analyst estimates lower for this in fy 25 than fy 24. Most banks have higher FY 25 estimates over FY 24. Not that I believe too much in analysts but that is something just to take note of it.
2) Obviously cheap on the fact that it trades at discount to tangible book, so that is always a plus
3) Pays a decent divy of about 4.80% at current levels so you do get paid while you wait.
4) Nice to see deposit growth this quarter, so that is a plus.
5) Loan growth was negative so didn't love that.
6) Nice to see NIMS Improve again sequentially. So that is a plus. I would guess that we should see some slight improvements going foward here.
7) Tax rate was little low this quarter to say the least at under 7.5% So that probably will be higher in future quarters. Based on historical probably at least double, hence that would lower eps by about $.06-.07 right there at least.
8) The thing I don't like is the huge increase in NPA this quarter in fact NPA were up 62% sequentially. Now they did take a larger provision this quarter was a plus in a sense they are trying to do the right thing. End result if you look at there 5 quarter analysis. There Allowance has went down like 5 million over that period, and there NPA have increased over 31 million. In fact htere allowance is not much larger than there NPA's. Have to say that is starting to concern me. Because they might need to increase significantly there provision in future quarters.
Conclusion: I ike alot of banks better at this point mostly because of the Asset quality didn't like that rise in NPA's and don't like the fact that another quarter anywhere near like this there allowance will be less than the NPA's which isn't great. Time will tell. At these prices will definetley pass, I need to see another quarter if this rise in NPA is a problem. The yield isn't large enough to excit me. And I wonder if they earn $3.00 in fy 25, because they might need to take significantly higher provisions going foward, combined with a higher tax rate. Also lack of loan growth doesn't excite me either. But the most important take is the asset quality here needs to be watched. All is just my opinion, and I could always be wrong though.
AI
