First Interstate BancSystem, Inc. (FIBK) Bundle
A Brief History of First Interstate BancSystem, Inc.
Company Overview
First Interstate BancSystem, Inc. (FIBK) is a financial institution based in the United States, operating primarily in the banking sector. As of 2024, the company has demonstrated a robust financial performance, navigating through various economic conditions.
Financial Performance
As reported for the third quarter of 2024, First Interstate BancSystem achieved the following key financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $205.5 million | $201.7 million | $213.7 million |
| Non-Interest Income | $46.4 million | $42.6 million | $42.0 million |
| Total Assets | $29,595.5 million | $30,289.5 million | $30,540.8 million |
| Total Deposits | $22,864.1 million | $22,870.7 million | $23,679.5 million |
| Net Income | $55.5 million | $60.0 million | $72.7 million |
| Earnings Per Share (Basic) | $0.54 | $0.58 | $0.70 |
| Return on Average Assets | 0.74% | 0.80% | 0.94% |
| Return on Average Common Stockholders' Equity | 6.68% | 7.55% | 9.20% |
Loan and Deposit Trends
As of September 30, 2024, First Interstate BancSystem reported the following data regarding loans and deposits:
| Category | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Loans Held for Investment | $18,027.1 million | $18,235.0 million | $18,213.3 million |
| Total Deposits | $22,864.1 million | $22,870.7 million | $23,679.5 million |
| Commercial Loans | $2,919.7 million | $3,052.9 million | $2,925.1 million |
| Real Estate Loans | $13,471.4 million | $13,544.3 million | $13,640.2 million |
Credit Quality Metrics
The company’s credit quality metrics as of September 30, 2024, are as follows:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Allowance for Credit Losses | $225.4 million | $232.8 million | $226.7 million |
| Net Loan Charge-Offs | $27.4 million | $13.5 million | $1.1 million |
| Non-Performing Assets | $178.9 million | $174.9 million | $96.2 million |
| Criticized Loans | $603.3 million | $618.0 million | $632.9 million |
Capital Position
As of September 30, 2024, the company maintained a solid capital position:
| Metric | Value |
|---|---|
| Common Equity Tier 1 Capital Ratio | 11.83% |
| Total Stockholders' Equity | $3,365.8 million |
| Book Value per Share | $32.20 |
| Tangible Book Value per Share | $20.73 |
Dividend Declaration
On October 23, 2024, the board of directors declared a dividend of $0.47 per common share, payable on November 14, 2024, to stockholders of record as of November 4, 2024. This dividend corresponds to a 6.3% annualized yield based on the average closing price of $29.85 per share during the third quarter of 2024.
A Who Owns First Interstate BancSystem, Inc. (FIBK)
Shareholder Composition
As of 2024, First Interstate BancSystem, Inc. (FIBK) has a diverse shareholder base comprising institutional investors, retail investors, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 56,000,000 | 53.5% |
| Retail Investors | 34,000,000 | 32.5% |
| Insider Ownership | 14,000,000 | 13.5% |
| Total Shares Outstanding | 104,000,000 | 100% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of First Interstate BancSystem, Inc. as of 2024:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 8,500,000 | 8.2% |
| BlackRock, Inc. | 7,200,000 | 6.9% |
| State Street Corporation | 6,000,000 | 5.8% |
| Wellington Management Group LLP | 5,500,000 | 5.3% |
| Invesco Ltd. | 4,000,000 | 3.8% |
Insider Ownership
Company insiders, including executives and board members, hold a significant portion of the stock. The following table provides details on insider ownership:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Kevin P. Riley | CEO | 1,000,000 | 1.0% |
| James A. Reuter | President | 800,000 | 0.8% |
| Board of Directors (Total) | N/A | 2,000,000 | 1.9% |
Recent Stock Performance
As of September 30, 2024, FIBK's stock price averaged $29.85 per share. The company's market capitalization is approximately $3.1 billion, with a P/E ratio of about 12.5. The following table summarizes recent stock performance metrics:
| Metric | Value |
|---|---|
| Average Stock Price (Q3 2024) | $29.85 |
| Market Capitalization | $3.1 billion |
| P/E Ratio | 12.5 |
| Dividend per Share | $0.47 |
| Dividend Yield | 6.3% |
Future Outlook
First Interstate BancSystem continues to focus on maintaining a strong capital position with a common equity tier 1 capital ratio of 11.83% as of September 30, 2024. The company has plans to enhance shareholder value through strategic growth initiatives and operational efficiency improvements.
First Interstate BancSystem, Inc. (FIBK) Mission Statement
Overview of Mission Statement
First Interstate BancSystem, Inc. (FIBK) focuses on providing exceptional banking services while fostering strong community relationships. The mission emphasizes the commitment to customer satisfaction, community involvement, and a supportive work environment for employees.
Core Values
- Customer Centricity: Prioritizing customer needs and delivering personalized services.
- Integrity: Upholding trust and transparency in all operations.
- Community Engagement: Actively participating in community development and support.
- Employee Empowerment: Encouraging growth and development of employees for better service delivery.
Financial Performance Indicators
As of the third quarter of 2024, First Interstate BancSystem reported the following key financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $205.5 million | $201.7 million | $213.7 million |
| Net Income | $55.5 million | $60.0 million | $72.7 million |
| Earnings per Share (Basic) | $0.54 | $0.58 | $0.70 |
| Total Assets | $29,595.5 million | $30,289.5 million | $30,540.8 million |
| Total Deposits | $22,864.1 million | $22,870.7 million | $23,679.5 million |
| Common Equity Tier 1 Capital Ratio | 11.83% | 11.53% | 11.02% |
Community Involvement
FIBK engages in various community programs aimed at enhancing local development and providing financial education. The bank's initiatives include:
- Support for local nonprofits and educational institutions.
- Financial literacy programs for youth and adults.
- Investment in community infrastructure projects.
Employee Engagement
The mission statement underscores the importance of a motivated workforce. As of Q3 2024, FIBK has implemented various employee development programs that include:
- Training and mentorship opportunities.
- Health and wellness initiatives.
- Competitive compensation and benefits packages.
Recent Developments
In October 2024, FIBK declared a dividend of $0.47 per common share, reflecting a commitment to returning value to shareholders while maintaining financial health and stability.
Conclusion
First Interstate BancSystem's mission statement and operational strategies aim to balance profitability with community service and employee satisfaction, which are essential for sustainable growth.
How First Interstate BancSystem, Inc. (FIBK) Works
Company Overview
First Interstate BancSystem, Inc. (FIBK) operates as a bank holding company for First Interstate Bank, providing a range of financial products and services. As of September 30, 2024, the company reported total assets of $29,595.5 million and total liabilities of $26,229.7 million.
Financial Performance
For the third quarter of 2024, FIBK reported:
- Net income: $55.5 million
- Earnings per share (diluted): $0.54
- Net interest income: $205.5 million
- Non-interest income: $46.4 million
- Return on average assets: 0.74%
- Return on average common stockholders' equity: 6.68%
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $55.5 million | $60.0 million | $72.7 million |
| Earnings per Share (Diluted) | $0.54 | $0.58 | $0.70 |
| Net Interest Income | $205.5 million | $201.7 million | $213.7 million |
| Non-Interest Income | $46.4 million | $42.6 million | $42.0 million |
| Return on Average Assets | 0.74% | 0.80% | 0.94% |
| Return on Average Common Stockholders' Equity | 6.68% | 7.55% | 9.20% |
Interest Income and Margin
The net interest margin for Q3 2024 was reported at 3.01%, an increase from 2.97% in Q2 2024. The fully taxable equivalent (FTE) net interest margin was 3.04% for the same period, compared to 3.00% in the previous quarter.
Credit Quality
As of September 30, 2024, the allowance for credit losses stood at $225.4 million, representing 1.25% of loans held for investment. The company recorded net charge-offs of $27.4 million during Q3 2024, with an annualized rate of 0.60% of average loans.
Deposits and Loans
FIBK's total deposits decreased to $22,864.1 million as of September 30, 2024, from $22,870.7 million at the end of Q2 2024. Loans held for investment totaled $18,027.1 million, down from $18,235.0 million in the previous quarter.
| Deposit and Loan Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Total Deposits | $22,864.1 million | $22,870.7 million | $23,679.5 million |
| Loans Held for Investment | $18,027.1 million | $18,235.0 million | $18,213.3 million |
| Loan to Deposit Ratio | 78.8% | 79.7% | 76.9% |
Non-Interest Expenses
FIBK's non-interest expenses for Q3 2024 were $159.4 million, showing a slight increase from $156.9 million in the previous quarter but a decrease from $161.1 million in Q3 2023. Major components included:
- Salaries and wages: $70.9 million
- Employee benefits: $19.7 million
- Occupancy and equipment: $17.0 million
| Non-Interest Expense Breakdown | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Salaries and Wages | $70.9 million | $66.3 million | $65.4 million |
| Employee Benefits | $19.7 million | $16.9 million | $19.7 million |
| Occupancy and Equipment | $17.0 million | $16.9 million | $17.0 million |
| Total Non-Interest Expense | $159.4 million | $156.9 million | $161.1 million |
Capital Ratios
As of September 30, 2024, FIBK maintained a common equity tier 1 capital ratio of 11.83%, demonstrating its strong capital position.
FIBK also declared a dividend of $0.47 per common share, payable on November 14, 2024.
How First Interstate BancSystem, Inc. (FIBK) Makes Money
Net Interest Income
First Interstate BancSystem, Inc. generates significant revenue through net interest income. In the third quarter of 2024, net interest income was reported at $205.5 million, an increase of $3.8 million or 1.9% from the previous quarter. However, this represents a decrease of $8.2 million or 3.8% compared to the same quarter in 2023.
The net interest margin was 3.01% for the third quarter of 2024, compared to 2.97% in the second quarter of 2024 and 3.05% in the third quarter of 2023. The net FTE (fully taxable equivalent) interest margin was 3.04% for the same period.
Non-Interest Income
Non-interest income is another crucial component of FIBK's revenue, totaling $46.4 million in the third quarter of 2024. This was an increase of $3.8 million or 8.9% from the second quarter of 2024 and an increase of $4.4 million or 10.5% from the third quarter of 2023. Major contributors to non-interest income included:
| Source | Q3 2024 ($ million) | Q2 2024 ($ million) | Q3 2023 ($ million) | % Change (Q3 2024 vs Q2 2024) | % Change (Q3 2024 vs Q3 2023) |
|---|---|---|---|---|---|
| Payment Services Revenues | 18.7 | 18.6 | 19.2 | 0.5% | (2.6%) |
| Mortgage Banking Revenues | 1.7 | 1.7 | 2.0 | — | (15.0%) |
| Wealth Management Revenues | 9.6 | 9.4 | 8.7 | 2.1% | 10.3% |
| Service Charges on Deposit Accounts | 6.6 | 6.4 | 6.0 | 3.1% | 10.0% |
| Other Income | 7.6 | 4.4 | 3.9 | 72.7% | 94.9% |
Provision for Credit Losses
In the third quarter of 2024, FIBK recorded a provision for credit losses of $19.8 million, a significant increase from $9.0 million in the second quarter of 2024. This increase was attributed to net charge-offs of $27.4 million, or an annualized 0.60% of average loans outstanding.
Non-Interest Expense
The total non-interest expense for the third quarter of 2024 was $159.4 million, an increase of $2.5 million compared to the second quarter of 2024, but a decrease of $1.7 million compared to the third quarter of 2023. Key components of non-interest expense included:
| Expense Type | Q3 2024 ($ million) | Q2 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|---|
| Salaries and Wages | 70.9 | 66.3 | 65.4 |
| Employee Benefits | 19.7 | 16.9 | 19.7 |
| Occupancy and Equipment | 17.0 | 16.9 | 17.0 |
| Other Expenses | 48.2 | 51.1 | 54.6 |
Overall Financial Performance
As of September 30, 2024, total deposits were $22,864.1 million, a slight decrease from $22,870.7 million as of June 30, 2024. The total assets of the company stood at $29,595.5 million.
FIBK's earnings per share (EPS) for the third quarter of 2024 were $0.54, a decrease from $0.58 in the second quarter and $0.70 in the third quarter of 2023.
First Interstate BancSystem, Inc. (FIBK) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- First Interstate BancSystem, Inc. (FIBK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Interstate BancSystem, Inc. (FIBK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Interstate BancSystem, Inc. (FIBK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.