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 30.2% below its fair value

Earnings are forecast to grow 7.56% per year

Earnings have grown 16.8% per year over the past 5 years

Pays a high and reliable dividend of 2.94%

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

0.07%

FIBK

0.6%

US Banks

-0.3%

US Market


1 Year Return

4.9%

FIBK

19.0%

US Banks

18.6%

US Market

Return vs Industry: FIBK underperformed the US Banks industry which returned 19% over the past year.

Return vs Market: FIBK underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

FIBKIndustryMarket
7 Day0.07%0.6%-0.3%
30 Day-2.0%1.8%2.2%
90 Day8.5%15.8%5.6%
1 Year8.1%4.9%22.5%19.0%21.1%18.6%
3 Year9.4%0.8%30.1%21.0%45.6%36.2%
5 Year79.7%55.7%77.5%57.8%71.1%52.2%

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?

30.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FIBK ($42.13) is trading below our estimate of fair value ($60.36)

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 (15.6x) compared to the Banks industry average (12.7x).

PE vs Market: FIBK is good value based on its PE Ratio (15.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: FIBK is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: FIBK is overvalued based on its PB Ratio (1.4x) 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?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIBK's forecast earnings growth (7.6% per year) is above the savings rate (1.7%).

Earnings vs Market: FIBK's earnings (7.6% 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 (2.7% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: FIBK's revenue (2.7% 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 (9.7%).


Next Steps

Past Performance

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

16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIBK has high quality earnings.

Growing Profit Margin: FIBK's current net profit margins (27.1%) are lower than last year (28%).


Past Earnings Growth Analysis

Earnings Trend: FIBK's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: FIBK's earnings growth over the past year (9.7%) is below its 5-year average (16.8% per year).

Earnings vs Industry: FIBK earnings growth over the past year (9.7%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: FIBK's Return on Equity (8.5%) 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 2.1x 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 (0.63%)


Next Steps

Dividend

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

2.94%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: FIBK's dividend (2.94%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: FIBK's dividend (2.94%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 (45.9%), 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 (41.7% payout ratio).


Next Steps

Management

What is the CEO of First Interstate BancSystem's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Kevin Riley (59yo)

4.3yrs

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 ($USD2.50M) is below average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

4.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: FIBK's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

63yo

Average Age

Experienced Board: FIBK's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$54,71727 Nov 19
Kevin Riley
EntityIndividual
Role
Chief Executive Officer
President
Shares1,300
Max PriceUS$42.09
SellUS$38,83127 Nov 19
Kevin Riley
EntityIndividual
Role
Chief Executive Officer
President
Shares923
Max PriceUS$42.07
SellUS$3,81621 Nov 19
Homer Scott
EntityIndividual
Shares90
Max PriceUS$42.40
SellUS$13,03507 Nov 19
James Scott
EntityIndividual
Shares300
Max PriceUS$43.45
SellUS$164,83407 Nov 19
James Scott
EntityIndividual
Shares3,778
Max PriceUS$43.63
SellUS$42,94904 Nov 19
Ross Leckie
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$42.95
SellUS$121,80013 Sep 19
Ross Leckie
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$40.60
SellUS$48,52205 Sep 19
Ross Leckie
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,219
Max PriceUS$39.81
BuyUS$37,80512 Jun 19
Peter Wold
EntityIndividual
Shares1,000
Max PriceUS$37.81
SellUS$196,80023 May 19
Kevin Riley
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceUS$39.36
SellUS$89,12601 May 19
Philip Gaglia
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Risk Officer
Shares2,112
Max PriceUS$42.20
SellUS$92,85514 Mar 19
Ross Leckie
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,204
Max PriceUS$42.13
SellUS$644,66412 Mar 19
Jonathan Scott
EntityIndividual
Shares15,670
Max PriceUS$41.14

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.6%.


Management Team

  • Kevin Riley (59yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$2.50m
  • Kade Peterson (54yo)

    Executive VP & Chief Information Officer

    • Tenure: 1.6yrs
  • Marcy Mutch (60yo)

    Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$827.42k
  • Jodi Hubbell (53yo)

    Executive VP & COO

    • Tenure: 1.9yrs
    • Compensation: US$774.09k
  • Phil Gaglia (55yo)

    Executive VP & Chief Risk Officer

    • Tenure: 7.9yrs
    • Compensation: US$556.61k
  • Bill Gottwals (50yo)

    Executive VP & Director of Banking

    • Tenure: 4.1yrs
    • Compensation: US$638.37k
  • Kirk Jensen (48yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$660.78k
  • Margie Morse

    VP & Investor Relations Officer

    • Tenure: 0yrs
  • Renee Newman (49yo)

    Executive VP & Chief Banking Officer

    • Tenure: 0yrs
  • David Redmon

    Chief of Staff

    • Tenure: 0.4yrs

Board Members

  • Patti Moss (65yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$70.28k
  • Jim Scott (69yo)

    Chairman of the Board

    • Tenure: 3.9yrs
    • Compensation: US$230.00k
  • John Heyneman (52yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$53.09k
  • Teresa Taylor (55yo)

    Lead Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$80.59k
  • Kevin Riley (59yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$2.50m
  • Ross Leckie (61yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$106.51k
  • Steve Corning (66yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$122.56k
  • Charles Hart (69yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$160.01k
  • Dave Jahnke (66yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$83.72k
  • Dana Filip-Crandall (54yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$80.60k

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$2.689b
  • 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 chec ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:23
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.