First Interstate Bancsystem (FIBK) AI Stock Analysis

• Market Cap: $2.90B
• Dividend Yield: 6.77%
• Average Volume (3M): 586.31K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.25
• Revenue Growth: 3.61%
• EPS Growth: -11.55%
• Country: US
• Employees: 3,585
• Sector: Financial
• Sector Strength: 77
• Industry: Banking
• EPS (TTM): 2.19
• Shares Outstanding: 104,531,310
• 10 Day Avg. Volume: 659,914
• 30 Day Avg. Volume: 586,312
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.12
• Price to Cash Flow (P/CF): 7.60
• P/FCF Ratio: 4.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $35.50
• Price Target Upside: 25.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

First Interstate Bancsystem's overall stock score of 63 reflects a stable financial position with areas of improvement in revenue consistency and operational efficiency. The stock's technical indicators suggest a bearish trend, though valuation metrics and dividend yield are appealing. The earnings call provides a balanced view, with growth opportunities tempered by recent performance challenges.

Positive Factors

Leadership Change

The hiring of James Reuter as CEO is viewed as a positive catalyst, bringing a focus on organic growth and improved reporting consistency.

Negative Factors

Balance Sheet

Limited balance sheet growth and credit tail-risk put the still-premium valuation at risk.

Credit Risk

Credit remains a risk with a significant migration to criticized loans, following changes to credit policies and portfolio monitoring.

First Interstate Bancsystem Business Overview & Revenue Model

Company Description

First Interstate BancSystem, Inc. is a financial holding company, which engages in the provision of community banking solutions. The company offers commercial and consumer banking services to individuals, businesses, municipalities, and other entities. It also provides internet, mobile, and other banking and financial services. The company was founded by Homer Scott Sr. in 1968 and is headquartered in Billings, MT.

How the Company Makes Money

First Interstate BancSystem generates revenue through a variety of financial services. The primary source of income is from interest earned on loans issued to consumers and businesses, including commercial, real estate, agricultural, and personal loans. Additionally, FIBK earns income through non-interest revenue streams such as service charges on deposit accounts, fees from transaction processing, and wealth management services. The company also benefits from strategic partnerships and investments in financial technology to enhance its service offerings and operational efficiencies. These diverse revenue streams allow FIBK to maintain a stable income base across different economic cycles.

First Interstate Bancsystem Financial Statement Overview

Summary

First Interstate Bancsystem shows a mixed financial landscape. The income statement reflects inconsistent revenue growth, with a substantial improvement in 2024. The balance sheet is strong, underpinned by a stable equity position, though asset management volatility is noted. Cash flow is positive but inconsistent, suggesting areas for operational efficiency improvement.

Income Statement

First Interstate Bancsystem experienced fluctuating revenue and net income over the years. The revenue decreased from 2022 to 2023 but saw a significant increase in 2024. Net profit margin remained relatively stable, with a notable improvement in 2024. EBIT and EBITDA margins were not available for 2024, suggesting operational challenges or changes in reporting.

Balance Sheet

The company's balance sheet shows a strong equity position, with a stable debt-to-equity ratio. The equity ratio remained consistent, indicating financial stability. However, fluctuations in total assets and liabilities highlight potential volatility in asset management.

Cash Flow

Operating cash flow has been relatively stable, with a dip in 2023. Free cash flow remained positive, indicating good cash management. However, the free cash flow growth rate was inconsistent, suggesting potential challenges in sustaining cash-generating capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
178.10M	1.03B	1.11B	638.70M	653.70M
	Gross Profit
178.10M	954.20M	1.04B	638.70M	653.70M
	EBIT
-832.40M	336.80M	375.60M	247.80M	209.30M
	EBITDA
0.00	0.00	288.80M	244.00M	246.00M
	Net Income Common Stockholders
226.00M	257.50M	202.20M	192.10M	161.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.12B	379.00M	7.82B	7.17B	6.29B
	Total Assets
29.14B	30.67B	32.29B	19.67B	17.65B
	Total Debt
132.20M	2.89B	2.61B	199.40M	199.40M
	Net Debt
-245.80M	2.31B	1.74B	-2.15B	-2.08B
	Total Liabilities
25.83B	27.44B	29.21B	17.69B	15.69B
	Stockholders Equity
3.30B	3.23B	3.07B	1.99B	1.96B
Cash Flow		Free Cash Flow
355.00M	399.80M	523.90M	272.00M	238.10M
	Operating Cash Flow
355.00M	428.00M	534.40M	282.30M	268.30M
	Investing Cash Flow
1.76B	1.25B	-949.00M	-2.12B	-1.87B
	Financing Cash Flow
-1.80B	-1.97B	-1.06B	1.91B	2.80B

First Interstate Bancsystem Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIBK, the sentiment is Negative. The current price of 28.27 is below the 20-day moving average (MA) of 30.46, below the 50-day MA of 31.36, and below the 200-day MA of 29.91, indicating a bearish trend. The MACD of -1.05 indicates Positive momentum. The RSI at 30.35 is Neutral, neither overbought nor oversold. The STOCH value of 10.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIBK.

First Interstate Bancsystem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BANR	71 Outperform	$2.14B	12.75	9.86%	3.09%	11.04%	-8.38%
ZION	69 Neutral	$7.00B	9.54	13.15%	3.56%	7.91%	13.79%
BOKF	68 Neutral	$6.35B	12.19	9.70%	2.27%	11.17%	1.47%
Sector *	64 Neutral	$13.81B	10.53	9.19%	4.25%	17.27%	-7.62%
FIBK	63 Neutral	$2.90B	12.70	6.92%	6.77%	3.61%	-11.55%
WAL	60 Neutral	$8.13B	10.25	12.32%	2.06%	13.60%	8.85%

First Interstate Bancsystem Corporate Events

First Interstate Bancsystem Director Jonathan Scott to Step Down

On February 24, 2025, Jonathan R. Scott, a Class I director on the board of First Interstate Bancsystem, announced he will not seek re-election at the 2025 annual meeting of stockholders. His decision is not due to any disagreement with the company. The Scott family is expected to designate another family member for nomination to the board, ensuring continuity in representation as per the stockholders’ agreement.

First Interstate BancSystem Announces CFO Transition Plan

First Interstate BancSystem announced the retirement of Marcy D. Mutch as Executive Vice President and Chief Financial Officer, effective May 31, 2025, with a transition to an executive advisor role until the end of 2025 and as a consultant through 2026. David P. Della Camera, the current Deputy CFO, will succeed her as CFO starting June 1, 2025, as part of a strategic succession plan aimed at ensuring a seamless transition and continued financial leadership for the company.

First Interstate Bancsystem Reports Q4 Income Drop, New CEO

First Interstate BancSystem, Inc. reported a decrease in net income for the fourth quarter of 2024, with $52.1 million or $0.50 per diluted share, down from $55.5 million in the previous quarter and $61.5 million in the same quarter of 2023. The company appointed James A. Reuter as the new CEO and announced a dividend of $0.47 per share, reflecting a 5.8% annualized yield. Despite challenges such as an increase in criticized loans and net charge-offs, the bank showed improvements in net interest margin and capital ratios, along with a strategic reduction in borrowed funds, positioning itself for long-term growth.