First Interstate BancSystem: Strong 2020, But The Stock Is Getting Ahead Of Itself

Summary

  • First Interstate BancSystem has exited 2020 with a strong performance.
  • Despite a strong focus on commercial real estate, loan loss provisions and loans past due remained very low.
  • An impressive performance, but the shares are a bit expensive at over 15X the expected 2021 profit and at more than 2X the tangible book value.
  • Looking for a helping hand in the market? Members of European Small-Cap Ideas get exclusive ideas and guidance to navigate any climate. Learn More »

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Introduction

First Interstate BancSystem (NASDAQ:FIBK) is a bank-holding company focusing on the northwestern region of the United States. With core operations in Idaho, Montana, Washington, Oregon and Wyoming, the bank’s financial performance was surprisingly strong in 2020

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This article was written by

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The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks.

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Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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