Curious about First Interstate BancSystem net worth in 2024? We dive into their market cap and key financial metrics, highlighting what makes this bank a key player in the industry.
At Ando Money, we provide insights into their growth, loans, deposits, and more. Stay tuned for all the details!
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | First Interstate BancSystem |
| Full Name | First Interstate BancSystem, Inc. |
| Traded as | NASDAQ: FIBK |
| ISIN | US32055Y2019 |
| Founded | 1968 |
| Founders | Homer Scott, Sr. |
| Country/Territory | United States |
| Headquarters | Billings, Montana |
| Chief Executive Officer | Kevin P. Riley |
| Number of Employees | 3,600+ |
| Market Cap | $3.19 Billion (estimated) |
| Total Assets | $30.3 Billion |
| Total Equity | $3.22 Billion |
| Revenue | N/A |
| Net Income | $60.0 Million (Q2 2024) |
What is the Net Worth/ Market Cap of First Interstate BancSystem in 2024?
As of September 2024, First Interstate BancSystem has an estimated market capitalization of $3.19 billion. This figure highlights the bank’s significant presence in the U.S. financial market.
When compared to other regional banks, First Interstate’s market cap places it among mid-sized banks in the Western and Midwestern regions of the country.
The bank’s consistent financial performance and strategic acquisitions have contributed to its growing market value over the years.
To provide a broader context, here are a few banks related to First Interstate BancSystem:
- Wells Fargo
- Great Western Bank
- U.S. Bancorp
- Bank of America
- JPMorgan Chase
- Citibank
- PNC Financial Services
- Cascade Bancorp
- Inland Northwest Bank
For a more comprehensive view of the financial landscape, take a look at the largest banks worldwide to see how First Interstate BancSystem compares globally.
Financial Performance Overview
Key Financial Performance Metrics
First Interstate BancSystem has shown steady financial growth throughout 2024. One of the standout metrics is the net income of $60.0 million for Q2 2024, up from $58.4 million in the previous quarter.
This improvement can be attributed to strategic loan growth, especially in commercial and industrial loans, which saw an uptick despite a slight reduction in construction-related loans.
This growth in income is critical, as it contributes directly to the bank’s financial stability and market value.
Another important metric is the net interest margin (NIM), which increased by 7 basis points in Q2 2024, reaching 3.00%.
This increase reflects the bank’s ability to manage its interest-bearing assets efficiently, despite fluctuations in interest rates. However, the adjusted NIM stood at 2.92%, a slight improvement from 2.84% in Q1.
This difference highlights the impact of purchase accounting adjustments, which are typical when a bank like First Interstate acquires other institutions, such as Great Western Bank.
Loan Portfolio Analysis and Its Contribution to Financial Growth
The loan portfolio remains a critical driver of First Interstate BancSystem’s financial performance. By Q2 2024, the bank held $18.2 billion in loans.
Most notably, commercial real estate loans made up 50% of the loan portfolio, while commercial loans contributed 17%.
The increase of $32.2 million in loans from the previous quarter demonstrates the bank’s focus on expanding its core revenue-generating activities, particularly in the commercial lending space.
Moreover, the loan/deposit ratio of 79.7% showcases the bank’s prudent management of its lending operations, ensuring that loan growth is adequately backed by deposit growth.
Deposits: The Foundation of Financial Strength
Deposits also play a crucial role in maintaining liquidity and supporting First Interstate BancSystem’s loan activities.
By the end of Q2 2024, the bank had $22.9 billion in deposits, marking a $60.7 million increase from the first quarter. This growth was driven primarily by new business accounts and consumer deposits.
An essential factor in understanding deposit trends is the balance between consumer and business deposits. The deposit mix remained fairly consistent, with 52% coming from consumer accounts and 48% from businesses.
Additionally, non-interest-bearing deposits remained stable, comprising 26% of total deposits. This balance is critical for maintaining a stable cost of funds, as the bank’s overall deposit cost stood at 1.42% in Q2 2024.
Capital Adequacy and Regulatory Compliance
First Interstate BancSystem maintains strong capital adequacy ratios, which are vital for ensuring its long-term solvency and financial health.
As of Q2 2024, the bank’s Common Equity Tier 1 (CET1) ratio improved to 11.53%, while the Total Risk-Based Capital ratio stood at 13.80%. These metrics reflect the bank’s ability to meet regulatory requirements and cushion against potential risks.
The bank’s strong capital position is also supported by its tangible common equity (TCE) ratio, which increased to 6.95%.
This growth underscores the management’s focus on retaining earnings while simultaneously distributing quarterly dividends of $0.47 per share, providing a consistent return to shareholders with an annualized dividend yield of 7.1%.
Asset Quality and Non-Performing Loans
Managing non-performing loans (NPLs) is an ongoing challenge for any financial institution, and First Interstate is no exception.
The bank successfully reduced its NPLs by 3.9% in Q2 2024, bringing the total to $168.2 million, which represents 0.92% of loans held for investment (LHFI). This decrease was due to paydowns, payoffs, and charge-offs in certain loan segments, improving the overall credit quality of the portfolio.
Meanwhile, criticized loans also declined by $12.0 million, reflecting the bank’s efforts to clean up its balance sheet and ensure a healthier loan portfolio.
Additionally, the bank’s net charge-offs for Q2 totaled $13.5 million, or 30 basis points of average loans.
Long-Term Growth Prospects
Looking forward, First Interstate BancSystem’s prospects for continued growth remain strong. The bank’s strategy focuses on expanding its commercial lending activities and leveraging its branch network across 14 states.
In addition, the merger with Great Western Bank has opened up new markets in the Midwest, contributing to both deposit and loan growth. The bank also continues to invest in technology, ensuring that it stays competitive in a rapidly evolving financial landscape.
Overall, First Interstate BancSystem’s strong financial performance, robust capital ratios, and well-diversified loan portfolio position the bank for steady growth in the coming years.
FAQs about First Interstate BancSystem
Who is the CEO of the bank?
Kevin P. Riley is the CEO, driving growth and managing operations across 14 states.
What is the market capitalization of the bank in 2024?
As of September 2024, the bank’s market capitalization is $3.19 billion, making it a mid-sized regional bank.
How many employees does the bank have?
It employs over 3,600 people, with staff spread across multiple states.
Where is the headquarters of the bank located?
The headquarters is in Billings, Montana. The bank operates across 14 states in the Western and Midwestern U.S.
How many branches does the bank operate?
It runs 304 branches, providing banking services throughout 14 states.
What are the primary services offered by the bank?
The bank provides:
- Commercial lending
- Personal banking
- Wealth management
- Mortgage services
- Investment products
When was the bank founded?
It was founded in 1968, starting with the acquisition of a small local bank.
What was the impact of the Great Western Bank merger?
The merger expanded the bank’s presence into the Midwest, increasing its reach in Iowa, Kansas, and Minnesota.
Conclusion
First Interstate BancSystem is a financial force to be reckoned with. Want to know more? Drop your thoughts in the comments or share this article with friends.
For more in-depth banking insights, head over to andomoney.com and discover how global banks are shaping the financial world.
