BILLINGS, Mont. - First Interstate BancSystem, Inc. (NASDAQ:FIBK), a prominent community banking organization, announced today the planned retirement of its President and CEO, Kevin P. Riley. The company has commenced a search for Riley's replacement, who will remain in his current position until a new leader is appointed.
Riley, who joined First Interstate as Executive Vice President and Chief Financial Officer in 2013, ascended to the role of President and CEO in 2015. Under his stewardship, the bank experienced significant growth, expanding from a $7 billion institution in three states to a regional entity with over $30 billion in assets across a 14-state footprint.
Stephen B. Bowman, Chair of the Board, expressed gratitude for Riley's dedication and leadership, which he believes leaves the company well-positioned for the future. The Board is focused on finding a successor who will continue to drive growth, deliver shareholder value, and uphold the company's long-standing culture of integrity and community service.
The search for a new CEO is being led by a globally recognized executive recruiting firm. This strategic move aims to ensure a seamless transition by identifying a leader who understands the unique needs of the communities First Interstate serves and can execute the bank's long-term vision.
Reflecting on his 38-year tenure in the banking industry, Riley shared his pride in the bank's growth and achievements during his time as CEO. He expressed his gratitude for the opportunity to work with the talented team at First Interstate.
First Interstate BancSystem, Inc. is a financial and bank holding company that has been serving communities since 1971. With headquarters in Billings, Montana, it operates banking offices and offers online and mobile banking services across multiple states.
The information for this article is based on a press release statement.
In other recent news, First Interstate BancSystem reported a net income of $58.4 million, or $0.57 per share, for the first quarter. Despite a decrease in net interest income and noninterest income, the company remains focused on enhancing service and increasing its customer base. The bank is anticipating margin expansion in the second quarter and a stable cost of funds. However, loan demand remains muted, particularly in real estate, and the bank reported a decrease in loan balances and total deposits.
First Interstate BancSystem has made strategic adjustments to its balance sheet, including allowing $185 million in high-cost municipal deposits to leave. This move is expected to benefit its interest-bearing deposit costs. Despite a challenging economic environment, the bank remains disciplined in loan underwriting and pricing, and is optimistic about its performance for the remainder of 2024 and into 2025.
These are recent developments that highlight the bank's efforts to navigate financial challenges and prepare for future growth and stability.
InvestingPro Insights
As First Interstate BancSystem, Inc. (NASDAQ:FIBK) embarks on a pivotal transition with the retirement of its CEO, Kevin P. Riley, the company's financial health and future prospects remain a focal point for investors. With an adjusted market capitalization of $2.72 billion and a Price/Earnings (P/E) ratio standing at 10.47 for the last twelve months as of Q1 2024, First Interstate presents a value proposition in the banking sector.
InvestingPro data highlights the company's robust operating income margin of 39.49% for the same period, indicating efficient management and the potential to maintain profitability. Additionally, the dividend yield as of mid-2024 is substantial at 7.23%, reflecting First Interstate's commitment to returning value to shareholders, a practice underscored by 15 consecutive years of dividend payments.
InvestingPro Tips for First Interstate BancSystem point to a positive outlook among analysts, with five of them revising earnings estimates upwards for the upcoming period. This sentiment is further reinforced by the prediction that the company will remain profitable this year. For investors seeking to delve deeper into the company's financials and future guidance, there are additional tips available on InvestingPro's platform, which can be accessed with a special offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As the company navigates this leadership change, the insights provided by InvestingPro, including the 6 additional tips available on the platform, may offer valuable guidance to stakeholders considering the long-term vision and growth trajectory of First Interstate BancSystem.
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