First Interstate Bancsystem (FIBK) AI Stock Analysis

• Market Cap: $2.79B
• Dividend Yield: 7.05%
• Average Volume (3M): 993.71K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.14
• Revenue Growth: -6.80%
• EPS Growth: -15.66%
• Country: US
• Employees: 3,481
• Sector: Financial
• Sector Strength: 85
• Industry: Banks - Regional
• EPS (TTM): 2.11
• Shares Outstanding: 103,220,610
• 10 Day Avg. Volume: 984,030
• 30 Day Avg. Volume: 993,714
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 24.45
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $31.00
• Price Target Upside: 14.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

First Interstate BancSystem's stock score reflects a mix of strengths and challenges. The strong equity position and attractive dividend yield are tempered by weak technical indicators and mixed earnings guidance. Inconsistent financial performance and credit quality issues further affect the outlook.

Positive Factors

Credit Management

The latest credit announcement is seen as positive as it drives a significant reduction in non-performing loans and accelerates the removal of a credit overhang, paving the way for organic growth.

Leadership

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

Market Position

First Interstate's market position holds inherent advantages due to the lack of large bank competition within its 14-state footprint.

Negative Factors

Balance Sheet

A shrinking balance sheet, lower net interest income, higher expenses, and limited fee income growth likely to weigh on operating leverage.

Credit Deterioration

Credit deterioration and balance sheet contraction materialized, limiting positive operating leverage.

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. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, and other operational services, as well as online and mobile banking services. It serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, energy, governmental services, healthcare, hospitality, housing, mining, professional services, real estate development, retail, technology, tourism, and wholesale trade. As of December 31, 2021, it operated 147 banking offices, including detached drive-up facilities in communities across Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. The company was incorporated in 1971 and is headquartered in Billings, Montana.

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 strong balance sheet with stable equity, but faces challenges in revenue consistency and cash flow growth. The income statement and cash flow indicate areas for improvement in operational efficiency.

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: 27.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 27.05 is above the 20-day moving average (MA) of 26.15, below the 50-day MA of 27.91, and below the 200-day MA of 30.19, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 51.32 is Neutral, 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
CBU	73 Outperform	$3.00B	15.80	10.92%	3.32%	14.34%	13.06%
WSFS	72 Outperform	$3.12B	11.98	10.25%	1.15%	5.14%	―
CATY	69 Neutral	$3.01B	10.84	10.07%	3.23%	2.76%	-12.43%
WSBC	68 Neutral	$2.91B	19.85	3.38%	4.88%	17.57%	-35.93%
FIBK	66 Neutral	$2.79B	12.83	6.63%	7.05%	-6.80%	-15.66%
FHB	66 Neutral	$2.94B	12.66	9.11%	4.53%	-0.47%	5.97%
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%

First Interstate Bancsystem Corporate Events

First Interstate BancSystem Q1 2025 Financial Results

On April 29, 2025, First Interstate BancSystem, Inc. announced its financial results for the first quarter of 2025, reporting a net income of $50.2 million, a slight decrease from previous quarters. The company declared a dividend of $0.47 per share, payable on May 22, 2025. Key highlights include a marginal increase in net interest margin and a significant reduction in net charge-offs, although non-performing assets and criticized loans saw an increase. The company continues to manage credit risk proactively and has improved its capital ratios, reflecting a stable financial position despite challenges in the commercial real estate loan portfolio.

Spark’s Take on FIBK Stock

According to Spark, TipRanks’ AI Analyst, FIBK is a Neutral.

First Interstate Bancsystem’s overall stock score reflects its strong equity base and attractive dividend yield. However, technical indicators show weakness, and mixed earnings guidance presents risks. Inconsistent financial performance and challenges in asset management further temper the outlook.

To see Spark’s full report on FIBK stock, click here.

First Interstate BancSystem Announces Branch Sale Agreement

On April 28, 2025, First Interstate BancSystem, Inc. announced that its subsidiary, First Interstate Bank, entered into a Purchase and Assumption Agreement with Enterprise Financial Services Corp’s subsidiary, Enterprise Bank & Trust. Under the agreement, Enterprise Bank & Trust will acquire twelve branches from First Interstate Bank, including deposits and loans, with the transaction expected to close by early fourth quarter of 2025. This acquisition will expand Enterprise Bank & Trust’s presence in Arizona and Kansas, increasing its market reach and enhancing its ability to offer improved services to customers. The strategic move aligns with both companies’ customer and community-centric values, aiming to generate long-term value for shareholders and ensure a seamless transition for existing customers and employees.

Spark’s Take on FIBK Stock

According to Spark, TipRanks’ AI Analyst, FIBK is a Neutral.

First Interstate Bancsystem’s overall stock score reflects its strong equity base and attractive dividend yield. However, technical indicators show weakness, and mixed earnings guidance presents risks. Inconsistent financial performance and challenges in asset management further temper the outlook.

To see Spark’s full report on FIBK stock, click here.

First Interstate Bancsystem Announces Board Member Retirements

First Interstate Bancsystem announced the upcoming retirements of two of its board members, Mr. Thomas E. Henning and Ms. Frances P. Grieb, effective at the 2025 annual meeting of stockholders. Mr. Henning, who reached the retirement age of 72, has been a board member since the company’s acquisition of Great Western Bancorp in 2022, while Ms. Grieb has served since 2014. Their retirements are not due to any disagreements with the company, and they will continue their roles until the meeting.

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.