NasdaqGS:FIBK

Stock Analysis Report

First Interstate BancSystem

Executive Summary

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States.

Rewards

Trading at 35.8% below its fair value

Earnings are forecast to grow 6.3% per year

Earnings grew by 13% over the past year

Pays a high and reliable dividend of 3.47%

Risk Analysis

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has First Interstate BancSystem's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FIBK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

FIBK

-1.0%

US Banks

0.5%

US Market


1 Year Return

-6.9%

FIBK

10.6%

US Banks

20.3%

US Market

Return vs Industry: FIBK underperformed the US Banks industry which returned 10.6% over the past year.

Return vs Market: FIBK underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

FIBKIndustryMarket
7 Day-1.0%-1.0%0.5%
30 Day-2.6%-1.2%2.0%
90 Day-6.6%0.4%9.4%
1 Year-4.0%-6.9%13.8%10.6%22.8%20.3%
3 Year-3.3%-11.2%23.5%14.6%50.1%40.4%
5 Year68.7%46.2%74.0%54.2%73.1%54.1%

Price Volatility Vs. Market

How volatile is First Interstate BancSystem's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Interstate BancSystem undervalued compared to its fair value and its price relative to the market?

35.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FIBK ($39.22) is trading below our estimate of fair value ($61.11)

Significantly Below Fair Value: FIBK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FIBK is poor value based on its PE Ratio (13.8x) compared to the Banks industry average (12.6x).

PE vs Market: FIBK is good value based on its PE Ratio (13.8x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: FIBK is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: FIBK is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First Interstate BancSystem forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIBK's forecast earnings growth (6.3% per year) is above the savings rate (1.7%).

Earnings vs Market: FIBK's earnings (6.3% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: FIBK's earnings are forecast to grow, but not significantly.

Revenue vs Market: FIBK's revenue (4.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FIBK's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FIBK's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has First Interstate BancSystem performed over the past 5 years?

17.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIBK has high quality earnings.

Growing Profit Margin: FIBK's current net profit margins (28.7%) are higher than last year (28.2%).


Past Earnings Growth Analysis

Earnings Trend: FIBK's earnings have grown by 17.8% per year over the past 5 years.

Accelerating Growth: FIBK's earnings growth over the past year (13%) is below its 5-year average (17.8% per year).

Earnings vs Industry: FIBK earnings growth over the past year (13%) exceeded the Banks industry 12.3%.


Return on Equity

High ROE: FIBK's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is First Interstate BancSystem's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FIBK has a low level of unsold assets or inventory.

Debt Coverage by Assets: FIBK's debt is covered by short term assets (assets are 1.6x debt).


Financial Institutions Analysis

Asset Level: FIBK's level of assets compared to its equity is low.

Allowance for Bad Loans: FIBK has a sufficient allowance for bad loans.

Low Risk Liabilities: FIBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: FIBK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FIBK's loans are broadly funded by customer deposits.

Level of Bad Loans: FIBK has an appropriate level of bad loans (0.55%)


Next Steps

Dividend

What is First Interstate BancSystem's current dividend yield, its reliability and sustainability?

3.47%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: FIBK's dividend (3.47%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FIBK's dividend (3.47%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: FIBK's dividends per share have been stable in the past 10 years.

Growing Dividend: FIBK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.7%), FIBK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FIBK's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Kevin Riley (59yo)

4.4yrs

Tenure

US$2,498,077

Compensation

Mr. Kevin P. Riley has been the Chief Executive Officer and President of First Interstate Bancsystem, Inc. since September 23, 2015. Mr. Riley served as the Chief Financial Officer and Executive Vice Presi ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD2.50M) is below average for companies of similar size in the US market ($USD4.89M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Riley
President4.4yrsUS$2.50m0.11% $2.8m
Marcy Mutch
Executive VP & CFO4.4yrsUS$827.42k0.032% $824.7k
Jodi Hubbell
Executive VP & COO2.1yrsUS$774.09k0.022% $551.0k
Kirk Jensen
Executive VP0yrsUS$660.78k0.012% $310.3k
William Gottwals
Executive VP & Director of Banking4.3yrsUS$638.37k0.040% $1.0m
Philip Gaglia
Executive VP & Chief Risk Officer8.1yrsUS$556.61k0.0065% $167.0k
Kade Peterson
Executive VP & Chief Information Officer1.8yrsno data0.0034% $86.2k
Margie Morse
VP & Investor Relations Officer0yrsno datano data
David Redmon
Chief of Staff0.6yrsno datano data
Renee Newman
Executive VP & Chief Strategy Officer0yrsno data0.0041% $105.4k

4.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: FIBK's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Riley
President4.4yrsUS$2.50m0.11% $2.8m
Patricia Moss
Independent Director2.8yrsUS$70.28k0.015% $377.8k
James Scott
Chairman of the Board4.1yrsUS$230.00k6.64% $169.9m
John Heyneman
Director1.8yrsUS$53.09k0.90% $23.1m
Teresa Taylor
Lead Independent Director2.1yrsUS$80.59k0.012% $307.7k
Ross Leckie
Independent Director10.8yrsUS$106.51k0.012% $314.6k
Steven Corning
Independent Director11.8yrsUS$122.56k0.039% $988.4k
Charles Hart
Independent Director12.1yrsUS$160.01k0.040% $1.0m
David Jahnke
Independent Director8.4yrsUS$83.72k0.020% $501.1k
Dana Filip-Crandall
Independent Director5.8yrsUS$80.60k0.0099% $253.5k

5.1yrs

Average Tenure

63yo

Average Age

Experienced Board: FIBK's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FIBK insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.2%.


Top Shareholders

Company Information

First Interstate BancSystem, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Interstate BancSystem, Inc.
  • Ticker: FIBK
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.558b
  • Shares outstanding: 65.23m
  • Website: https://www.firstinterstatebank.com

Number of Employees


Location

  • First Interstate BancSystem, Inc.
  • 401 North 31st Street
  • PO Box 30918
  • Billings
  • Montana
  • 59116
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FIBKNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDMar 2010
4FBDB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 2010

Biography

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. Its deposit products include checking, savings, time, and demand deposits; and repurchase agreements primarily for commercial and municipal depositors. The company’s loan portfolio consists of real estate loans, including commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans; commercial loans; and other loans, including fixed and variable rate loans. It also provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations, which include the administration of estates and personal trusts; management of investment accounts for individuals, employee benefit plans, and charitable foundations; and insurance planning. In addition, the company offers Internet and mobile banking services. It serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, energy, healthcare and professional services, education and governmental services, mining, technology, retail and wholesale trade, and tourism. The company operates 147 banking offices located in Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 02:38
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.