NASDAQ$FIBK

First Interstate BancSystem Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported strong fourth quarter earnings driven by key performance metrics improvements.

First Interstate BancSystem, Inc. reported net income of $52.4 million, or $0.80 per share, for the fourth quarter of 2019, compared to $40.4 million, or $0.67 per share, for the fourth quarter of 2018. The company's efficiency ratio improved to 54.3% during the fourth quarter of 2019. Quarterly cash dividends increased 9.7% from $0.31 to $0.34 per share of common stock in January 2020.

  • Asset quality improved in Q4 2019, resulting in a $17.7 million decrease in non-performing assets and a $28.7 million decrease in criticized loans compared to Q3 2019.
  • Efficiency ratio improved to 54.3% during Q4 2019, compared to 57.8% during Q3 2019 and 63.3% during Q4 2018.
  • Net income of $52.4 million during Q4 2019, an increase of $12.0 million from the same period in the prior year.
  • Net interest margin ratio increased to 3.94% for Q4 2019, a one basis point increase from the prior quarter and a five basis point decrease from the same period in the prior year.

Headline financials

Total Revenue

$165M

Previous: $153M+8.0%
EPS (adj)

$0.81

Previous: $0.76+6.6%
Net Interest Margin

3.9%

No prior period
Efficiency Ratio

54.3%

No prior period
Loan to Deposit Ratio

77.4%

No prior period
Net Income

$52.4M

Previous: $40.4M+29.7%
Operating Income

$68.9M

No prior period
Cash & Equivalents

$1.08B

Previous: $822M+31.0%
Total Assets

$14.6B

Previous: $13.3B+10.1%
Stock-Based Comp

$1.4M

Previous: $1.3M+7.7%

Revenue & EPS history

First Interstate · Revenue · Quarterly

$165M

Q4 2019+8%vs Q4 2018
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

First Interstate · $34.7M total across 5 segments · Q4 2019

  • Payment Services
    $10.8M
  • Mortgage Banking
    $8.1M
  • Wealth Management
    $6M
  • Service Charges
    $5.4M
  • Other Service Charges
    $4.4M

Forward guidance

First Interstate BancSystem is well positioned to continue generating profitable growth and further enhancing the value of its franchise in the coming years.

Tailwinds

  • Continued focus on enhancing our digital offerings with the implementation of an online application process for consumer and business credit cards.
  • Generation of sequential quarter improvement in our key performance metrics including efficiency ratio, return on average assets and return on average common equity.
  • Execution on strategies for generating profitable growth.
  • Strong year of value creation in 2019, as we increased our tangible book value per share by 13.9% while returning $79.2 million of capital to shareholders through our quarterly dividend.
  • Significantly strengthened our franchise by increasing our presence in faster growing markets and investing in technology initiatives that expanded our products and services, improved our digital banking capabilities, and streamlined our workflow processes.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-1.1%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+1.1%

Avg return

30 days after

42%

27 / 64 earnings

Positive

+8.9%

Q3 2023

Best reaction

-11.8%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.5%+4.3%+3.4%
Q4 2025-1.5%+2.6%-5.6%
Q3 2025-1.9%-1.3%+2.3%
Q1 2025-5.7%-3.9%-2.3%
Q3 2024-3.2%-1.7%+7.6%
Q2 2024+2.4%+0.6%-2.8%
Q1 2024+1.6%+2.1%+2.2%
Q4 2023-6.4%-10.2%-10.5%
Q3 2023+8.9%+7.5%+17.3%
Q2 2023+3.4%+4.0%-8.5%
Q1 2023-0.5%-3.8%-10.9%
Q4 2022-11.8%-5.8%-5.7%
Q3 2022+3.3%+6.5%+4.0%
Q2 2022+0.5%+1.3%+1.1%
Q1 2022-2.5%+6.3%+14.2%
Q4 2021-5.9%-3.1%+0.4%
Q3 2021-0.4%-2.6%+0.6%
Q2 2021-2.4%-0.4%+4.2%
Q1 2021-1.9%-2.8%-2.9%
Q4 2020-2.8%-0.1%+14.1%
Q3 2020-1.2%-4.1%+10.3%
Q2 2020-3.2%-3.8%+6.5%
Q1 2020-7.5%-7.8%-9.2%
Q4 2019+1.2%+0.1%-11.9%
Q3 2019-0.2%+0.1%-1.6%
Q2 2019+0.3%-1.4%-2.9%
Q1 2019-1.0%-0.7%-9.9%
Q4 2018+0.1%+2.2%+7.9%
Q3 2018-0.2%-0.3%+1.3%
Q2 2018+0.5%-0.7%+6.1%
Q1 2018+1.6%-0.6%+8.1%
Q4 2017+0.1%-0.2%-5.3%
Q3 2017+1.3%+0.0%+4.4%
Q2 2017-1.1%-1.9%-3.9%
Q1 2017+0.9%-5.7%-9.7%
Q4 2016+0.7%-1.6%+5.7%
Q3 2016+0.8%+0.5%+18.2%
Q2 2016+2.0%+2.0%+6.1%
Q1 2016-2.9%
Q4 2015+2.9%
Q3 2015-4.8%
Q2 2015+1.0%
Q1 2015-1.0%
Q4 2014-3.8%
Q3 2014+2.2%
Q2 2014-0.2%
Q1 2014-3.9%
Q4 2013-4.3%
Q3 2013+2.3%
Q2 2013+3.4%
Q1 2013+1.8%
Q4 2012+4.7%
Q3 2012+2.7%
Q2 2012-1.1%
Q1 2011+1.5%
Q1 2012+0.9%
Q4 2011-2.4%
Q4 2009-2.4%
Q3 2010-4.5%
Q3 2011-4.5%
Q2 2010-7.6%
Q4 2010-7.6%
Q2 2011-7.6%
Q1 2010-0.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro