First Interstate BancSystem, Inc. (FIBK, Financial) has reported a consistent rise in its net interest margin for the fourth straight quarter. The company credits this progress to a balanced approach of cost management alongside strategic investments for future expansion. FIBK has also successfully reduced its outstanding borrowings, maintaining a flexible balance sheet as it moves forward.
However, there has been an increase in criticized and non-performing assets compared to the previous quarter. The company remains committed to a proactive strategy in managing credit risk. Despite these challenges, the focus on being a community-oriented bank with strong client relationships continues to be a priority for the organization.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for First Interstate BancSystem Inc (FIBK, Financial) is $32.25 with a high estimate of $41.00 and a low estimate of $25.00. The average target implies an upside of 16.05% from the current price of $27.79. More detailed estimate data can be found on the First Interstate BancSystem Inc (FIBK) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, First Interstate BancSystem Inc's (FIBK, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for First Interstate BancSystem Inc (FIBK, Financial) in one year is $32.67, suggesting a upside of 17.56% from the current price of $27.79. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the First Interstate BancSystem Inc (FIBK) Summary page.
FIBK Key Business Developments
Release Date: January 30, 2025
- Net Income: $52.1 million or $0.50 per share for Q4.
- Deposit Growth: Increased by $151.5 million in Q4.
- Net Interest Margin: Increased 16 basis points to 3.2% in Q4.
- Loan Decline: Loans decreased by $182.2 million in Q4.
- Net Charge-offs: Totaled $55.2 million in Q4.
- Provision Expense: $33.7 million in Q4.
- Dividend: Declared $0.47 per share, yielding 5.8% for Q4.
- Common Equity Tier 1 Capital Ratio: 12.16% at the end of Q4.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- First Interstate BancSystem Inc (FIBK, Financial) reported a net income of $52.1 million for the fourth quarter, demonstrating stable financial performance.
- The company achieved a deposit growth of $151.5 million in the fourth quarter, indicating successful efforts in deposit acquisition.
- The net interest margin increased by 16 basis points to 3.2%, reflecting effective asset repricing and margin expansion.
- The company reduced its borrowings significantly, with a $1 billion reduction in FHLB advances during 2024, improving its financial flexibility.
- First Interstate BancSystem Inc (FIBK) declared a dividend of $0.47 per share, maintaining a strong yield of 5.8% for shareholders.
Negative Points
- The company experienced a decline in loan balances by $182.2 million in the fourth quarter, which could impact future revenue growth.
- Higher charge-offs and paydowns of nonperforming loans contributed to an elevated level of provision expense, totaling $33.7 million.
- Criticized assets increased in the fourth quarter, with significant downgrades in the commercial real estate portfolio.
- The company anticipates a modest increase in noninterest expenses in 2025, driven by higher medical insurance costs and advertising expenses.
- First Interstate BancSystem Inc (FIBK) is discontinuing its indirect lending business, which may impact short-term loan growth and revenue.
