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Update: I'm Moving First Interstate BancSystem To Buy From Hold On Earnings

First Interstate BancSystem's (FIBK) Q4 and full year report was much better than expected and sets the tone for a bull thesis going forward. Prior to Q4 earnings I had asked readers to wait on shares, and I had a slightly bearish tone in my writings, as I felt investors needed confirmation that regional oil and gas troubles hadn't and wouldn't press on results. I would say FIBK passed the test with flying colors with its Q4 report:

  • Full year net interest income growth of 9.2% Y/Y
  • Full year non-interest income growth of 22.2%
  • Full year net income growth of 9.6%
  • Full year Core Net Income (non-GAAP) growth of 16.7%
  • Full year return on average asset contraction of only 5 bps
  • Full year net charge-offs annualized as a percentage of average loans of 1 bps, down from 34 bps
  • Full year net interest margin contraction of only 9 bps

FIBK… Read More …