NasdaqGS:FIBK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


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

3.8%

FIBK

5.1%

US Banks

0.4%

US Market


1 Year Return

-13.9%

FIBK

-26.7%

US Banks

17.8%

US Market

Return vs Industry: FIBK exceeded the US Banks industry which returned -26.7% over the past year.

Return vs Market: FIBK underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

FIBKIndustryMarket
7 Day3.8%5.1%0.4%
30 Day18.8%11.9%6.1%
90 Day25.6%5.4%8.9%
1 Year-9.0%-13.9%-24.0%-26.7%20.5%17.8%
3 Year8.3%-2.5%-15.9%-22.9%42.3%32.9%
5 Year50.7%28.3%20.3%5.4%84.2%63.4%

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?

14.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FIBK ($36.8) is trading above our estimate of fair value ($23.16)

Significantly Below Fair Value: FIBK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FIBK is poor value based on its PE Ratio (14.2x) compared to the US Banks industry average (10.3x).

PE vs Market: FIBK is good value based on its PE Ratio (14.2x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: FIBK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FIBK is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is First Interstate BancSystem forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIBK's earnings are forecast to decline over the next 3 years (-3.2% per year).

Earnings vs Market: FIBK's earnings are forecast to decline over the next 3 years (-3.2% per year).

High Growth Earnings: FIBK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FIBK's revenue is expected to decline over the next 3 years (-1.9% per year).

High Growth Revenue: FIBK's revenue is forecast to decline over the next 3 years (-1.9% 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 (7.4%).


Next Steps

Past Performance

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

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIBK has high quality earnings.

Growing Profit Margin: FIBK's current net profit margins (27.4%) are higher than last year (26.9%).


Past Earnings Growth Analysis

Earnings Trend: FIBK's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: FIBK's earnings growth over the past year (3.8%) is below its 5-year average (17.7% per year).

Earnings vs Industry: FIBK earnings growth over the past year (3.8%) exceeded the Banks industry -4%.


Return on Equity

High ROE: FIBK's Return on Equity (8.4%) is considered low.


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


Financial Institutions Analysis

Asset Level: FIBK's Assets to Equity ratio (8.2x) is low.

Allowance for Bad Loans: FIBK has a sufficient allowance for bad loans (254%).

Low Risk Liabilities: 92% of FIBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: FIBK has an appropriate level of Loans to Assets ratio (60%).

Low Risk Deposits: FIBK's Loans to Deposits ratio (74%) is appropriate.

Level of Bad Loans: FIBK has an appropriate level of bad loans (0.6%).


Next Steps

Dividend

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

3.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FIBK's dividend (3.7%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: FIBK's dividend (3.7%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 reasonable payout ratio (51.3%), FIBK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FIBK's dividends in 3 years are forecast to be covered by earnings (55.7% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Kevin Riley (60 yo)

5.08yrs

Tenure

US$2,534,373

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 ($USD2.53M) is below average for companies of similar size in the US market ($USD4.43M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Riley
President5.08yrsUS$2.53m0.16%
$ 3.9m
Marcy Mutch
Executive VP & CFO5.08yrsUS$971.68k0.043%
$ 1.0m
Jodi Hubbell
Executive VP & COO2.75yrsUS$920.37k0.020%
$ 476.6k
Kirk Jensen
Executive VPno dataUS$678.32k0.017%
$ 397.0k
Philip Gaglia
Executive VP & Chief Risk Officer8.75yrsUS$605.20k0.010%
$ 247.8k
Kade Peterson
Executive VP & Chief Information Officer2.42yrsno data0.0064%
$ 152.8k
Margie Morse
VP & Investor Relations Officerno datano datano data
Rachel Turitto
Senior VP & Chief Human Resources Officerno datano datano data
Renee Newman
Executive VP & Chief Strategy Officerno datano data0.0077%
$ 183.4k
David Redmon
Chief of Staff1.25yrsno datano data
Russell Lee
Executive VP & Chief Banking Officer2.17yrsno data0.015%
$ 362.1k
Michael Hickey
Missoula Regional Presidentno datano datano data

2.8yrs

Average Tenure

55yo

Average Age

Experienced Management: FIBK's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Riley
President5.08yrsUS$2.53m0.16%
$ 3.9m
Patricia Moss
Independent Director3.42yrsUS$108.12k0.017%
$ 407.5k
James Scott
Director49.75yrsUS$259.99k6.64%
$ 157.8m
John Heyneman
Director2.42yrsUS$91.87k0.78%
$ 18.6m
Jonathan Scott
Director0.67yrUS$606.76k1.14%
$ 27.0m
Ross Leckie
Independent Director11.42yrsUS$114.06k0.012%
$ 295.3k
Dennis Johnson
Independent Director3.42yrsUS$106.24k0.0079%
$ 187.7k
David Jahnke
Independent Chair of the Board0.42yrUS$147.49k0.024%
$ 558.6k
Alice Cho
Independent Director0.42yrno data0.0022%
$ 53.0k
Dana Filip-Crandall
Independent Director6.42yrsUS$107.49k0.013%
$ 314.3k
James Scott
Director5.42yrsUS$182.83k0.15%
$ 3.5m

3.4yrs

Average Tenure

60yo

Average Age

Experienced Board: FIBK's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$2.376b
  • Shares outstanding: 64.56m
  • Website: https://www.FIBK.com

Number of Employees


Location

  • First Interstate BancSystem, Inc.
  • 401 North 31st Street
  • PO Box 30918
  • Billings
  • Montana
  • 59116-0918
  • 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 chec ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 05:29
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.