GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » First Interstate BancSystem Inc (NAS:FIBK) » Definitions » ROE %

First Interstate BancSystem (First Interstate BancSystem) ROE %

: 7.79% (As of Dec. 2023)
View and export this data going back to 2010. Start your Free Trial

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. First Interstate BancSystem's annualized net income for the quarter that ended in Dec. 2023 was $246 Mil. First Interstate BancSystem's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $3,157 Mil. Therefore, First Interstate BancSystem's annualized ROE % for the quarter that ended in Dec. 2023 was 7.79%.

The historical rank and industry rank for First Interstate BancSystem's ROE % or its related term are showing as below:

FIBK' s ROE % Range Over the Past 10 Years
Min: 7.99   Med: 9.54   Max: 10.26
Current: 8.22

During the past 13 years, First Interstate BancSystem's highest ROE % was 10.26%. The lowest was 7.99%. And the median was 9.54%.

FIBK's ROE % is ranked worse than
61.46% of 1461 companies
in the Banks industry
Industry Median: 9.96 vs FIBK: 8.22

First Interstate BancSystem ROE % Historical Data

The historical data trend for First Interstate BancSystem's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

First Interstate BancSystem Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.76 8.11 9.74 7.99 8.17

First Interstate BancSystem Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.29 7.22 8.53 9.37 7.79

Competitive Comparison

For the Banks - Regional subindustry, First Interstate BancSystem's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


First Interstate BancSystem ROE % Distribution

For the Banks industry and Financial Services sector, First Interstate BancSystem's ROE % distribution charts can be found below:

* The bar in red indicates where First Interstate BancSystem's ROE % falls into.



First Interstate BancSystem ROE % Calculation

First Interstate BancSystem's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=257.5/( (3073.8+3227.5)/ 2 )
=257.5/3150.65
=8.17 %

First Interstate BancSystem's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=246/( (3085.5+3227.5)/ 2 )
=246/3156.5
=7.79 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


First Interstate BancSystem  (NAS:FIBK) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=246/3156.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(246 / 1009.2)*(1009.2 / 30606)*(30606 / 3156.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=24.38 %*0.033*9.6962
=ROA %*Equity Multiplier
=0.8 %*9.6962
=7.79 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=246/3156.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (246 / 323.6) * (323.6 / 1009.2) * (1009.2 / 30606) * (30606 / 3156.5)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.7602 * 32.07 % * 0.033 * 9.6962
=7.79 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


First Interstate BancSystem ROE % Related Terms

Thank you for viewing the detailed overview of First Interstate BancSystem's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


First Interstate BancSystem (First Interstate BancSystem) Business Description

Traded in Other Exchanges
Address
401 North 31st Street, Billings, MT, USA, 59101
First Interstate BancSystem Inc is a financial holding company. It is the parent company of First Interstate Bank, a community bank offering a range of internet, mobile, and other banking and financial services throughout Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. It delivers a range of financial products and services to both retail and commercial customers in industries like agriculture, construction, education, energy, governmental services, healthcare, mining, professional services, retail, tourism, and wholesale trade. It generates a majority of income from interest charged on loans, and interest and dividends earned on investments.
Executives
Homer Scott Jr Trust, Homer Scott Jr. & First Interstate Wealth Management Co Trustees 10 percent owner FIRST INTERSTATE BANK, TRUSTEE, PO BOX 2007, SHERIDAN WY 82801
Julie A Scott 10 percent owner P O BOX 30918, BILLINGS MT 59116
Jonathan R Scott director P.O. BOX 30918, BILLINGS MT 59116
Kevin P Riley officer: President & CEO BERKSHIRE HILLS BANCORP INC, 24 NORTH STREET, PITTSFIELD MA 01201
Marcy D Mutch officer: Exec. Vice Pres. & CFO PO BOX 30918, BILLINGS MT 59116
Kirk D Jensen officer: General Counsel PO BOX 30918, BILLINGS MT 59116
Lorrie Asker officer: Chief Banking Officer 401 N. 31ST STREET, BILLINGS MT 59116-0918
James Brannen director 5400 UNIVERSITY AVENUE, WEST DES MOINES IA 50266
Ashley Hayslip officer: EVP, Chief Banking Officer P.O. BOX 30918, BILLINGS MT 59116
Scott James R. Jr director PO BOX 30918, BILLINGS MT 59116
Russell A Lee officer: EVP & Chief Banking Officer P.O. BOX 30918, BILLINGS MT 59116
James R Scott director, 10 percent owner C/O FIRST INTERSTATE BANCSYSTEM INC, P O BOX 30918, BILLINGS MT 59116
Heyneman John M Jr director, 10 percent owner C/O FIRST INTERSTATE BANCSYSTEM INC, P O BOX 30918, BILLINGS MT 59116
Kristina Robbins officer: SVP, Chief Operations Officer PO BOX 30918, BILLINGS MT 59116
Philip G Gaglia officer: Chief Risk Officer PO BOX 30918, BILLINGS MT 59116