Jonathan Scott, a 10% owner of First Interstate BancSystem, Inc. (FIBK +1.60%), executed an open-market sale of 7,000 shares on Wednesday, according to an SEC Form 4 filing.
Transaction Summary
| Metric | Value |
|---|---|
| Shares sold | 7,000 |
| Transaction value | $224,630 |
| Post-transaction shares (indirect) | 945,824 |
| Post-transaction value (indirect ownership) | $30.4 million |
The transaction value is based on the SEC Form 4 weighted average purchase price of $32.09 as of the transaction date. The post-transaction value is also based on the SEC Form 4 weighted average purchase price of $32.09.
Key Questions
What proportion of Scott Jonathan R’s direct holdings did this sale represent?
This transaction involved indirect share ownership and therefore did not impact Scott's direct holdings.
How does the size of this sale compare to the insider’s historical sell transactions?
The 7,000-share sale is materially smaller than the median sell transaction of 23,250 shares for this insider.
What were market conditions at the time of the transaction?
Shares were sold at $32.09 per share on Wednesday. The stock closed at $31.25 on Friday.
Does this filing affect indirect holdings or group beneficial ownership status?
Yes, the transaction reduced Scott's indirect holdings to 945,824 shares.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1 billion |
| Net income (TTM) | $229.5 million |
| Dividend yield | 6% |
| Price (as of market close Friday) | $31.25 |
Company Snapshot
First Interstate BancSystem offers a comprehensive suite of banking products and services, including depository accounts, real estate and commercial loans, consumer lending, and trust and investment management services. The company generates revenue primarily from net interest income on loans and deposits, as well as fee-based income from ancillary services such as investment management and insurance. First Interstate serves individuals, businesses, municipalities, and nonprofit organizations across the United States, including Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming.
Foolish Take
Scott's sale of First Interstate BancSystem was made through an indirect ownership structure, meaning Scott’s direct holdings were unaffected, though it's important to note that no direct holdings were reported.
While the transaction was relatively small—below his typical sale size of about 23,000 shares—it extends a consistent pattern of modest insider selling over the past several years. Scott’s indirect ownership now totals 945,824 shares, held through trust-related entities. At one point last year, he reported holding nearly 1.1 million shares.
First Interstate, headquartered in Billings, Montana, continues to show resilience despite subdued share performance—up 1.5% over the past year but still down 11.5% over five years. The regional bank recently reported $71.4 million in quarterly net income and a 6% dividend yield, supported by a 13.9% CET1 ratio and improving loan quality.
For long-term investors, small insider sales like this—especially from indirect holdings—are often routine portfolio adjustments rather than warning signs. With strong capital levels, disciplined expense control, and a focus on profitability, First Interstate remains a steady income-oriented regional bank play in a moderating rate environment.
Glossary
Open-market sale: A transaction where securities are sold on a public exchange, not through private negotiation.
Insider: An individual with access to nonpublic, material information about a company, often an executive or major shareholder.
10% owner: A person or entity holding at least 10% of a company's voting stock, subject to special SEC reporting rules.
SEC Form 4: A required filing disclosing changes in ownership of company securities by insiders.
Beneficial ownership: The true ownership of securities, even if held indirectly or in another name.
Direct ownership: Securities held in the owner's name, not through intermediaries or related entities.
Weighted average purchase price: The average price paid per share, weighted by the number of shares in each transaction.
Transaction value: The total dollar amount received or paid in a securities transaction.
Dividend yield: Annual dividends per share divided by the stock's current price, shown as a percentage.
Net interest income: The difference between interest earned on assets and interest paid on liabilities, a key bank revenue source.
Ancillary services: Additional services offered by a company, such as investment management or insurance, beyond its core business.
TTM: The 12-month period ending with the most recent quarterly report.
