First Interstate Bancsystem (FIBK) AI Stock Analysis

• Market Cap: $3.67B
• Dividend Yield: 5.31%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.01
• Revenue Growth: -5.43%
• EPS Growth: 4.19%
• Country: US
• Employees: 3,481
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 102,890,620
• 10 Day Avg. Volume: 2,915,669
• 30 Day Avg. Volume: 1,662,073
• PEG Ratio: -1.27
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 10.07
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.84
• Enterprise Value/Gross Profit: 3.89
• Enterprise Value/Ebitda: 9.99
• 1Y Price Target: $35.00
• Price Target Upside: -1.13% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $38.00 ▲(7.34% Upside)

First Interstate Bancsystem's strong technical indicators and attractive valuation are the primary drivers of its score. While financial performance shows robust profitability, the decline in revenue growth and operational challenges highlighted in the earnings call temper the overall outlook. Corporate events further support strategic growth initiatives.

Positive Factors

Strong Profitability

High profit margins indicate effective cost management and pricing power, supporting long-term financial stability and shareholder value.

Improved Credit Quality

Improved credit quality reduces risk and potential losses, enhancing the company's financial health and lending capacity.

Strategic Branch Optimization

Branch optimization allows the company to focus resources on more profitable markets, potentially increasing efficiency and market share.

Negative Factors

Decline in Loan Balances

A decline in loan balances can limit revenue growth and indicate challenges in attracting new customers or maintaining existing ones.

Increased Deposit Costs

Rising deposit costs can compress net interest margins, affecting profitability and competitive positioning in the banking sector.

Revenue Growth Decline

A decline in revenue growth can signal market challenges or reduced demand, impacting future earnings potential and strategic initiatives.

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 various key streams primarily derived from its banking operations. The core revenue sources include net interest income, which is earned from the difference between interest paid on deposits and interest earned on loans and investment securities. Additionally, the company earns non-interest income from services such as fees for account maintenance, transaction services, asset management, and mortgage origination. The effectiveness of its lending practices, along with the overall economic environment, significantly influences its profitability. Partnerships with local businesses and community organizations also bolster its customer base and enhance its market presence, contributing to sustained revenue generation.

First Interstate Bancsystem Financial Statement Overview

Summary

First Interstate Bancsystem demonstrates strong profitability margins and improved leverage ratios. Despite a decline in revenue growth, the company maintains profitability and solid cash flow generation. The balance sheet reflects reduced leverage, enhancing financial stability.

Income Statement

First Interstate Bancsystem has shown a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 8.66%, which is a concern. However, the company maintains strong profitability metrics with a gross profit margin of 72.96% and a net profit margin of 18.77%. The EBIT and EBITDA margins are also healthy at 24.42% and 27.14%, respectively. Despite the recent revenue decline, the company has managed to sustain its profitability, which is a positive sign.

Balance Sheet

The balance sheet of First Interstate Bancsystem reflects a stable financial position with a debt-to-equity ratio of 0.23 in the TTM period, indicating low leverage. The return on equity is moderate at 7.25%, showing decent profitability relative to equity. However, the equity ratio is not explicitly provided, but the overall leverage has decreased compared to previous years, suggesting improved financial stability.

Cash Flow

The cash flow statement shows a positive trend with a 7.01% growth in free cash flow in the TTM period. The free cash flow to net income ratio is strong at 92.10%, indicating efficient cash generation relative to net income. However, the operating cash flow to net income ratio is not available, which limits a full assessment of cash flow efficiency. Overall, the cash flow position is solid, but there is room for improvement in operating cash flow metrics.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.48B	1.43B	1.18B	656.00M	680.30M
Gross Profit	953.70M	931.90M	993.60M	1.02B	653.30M	596.80M
EBITDA	371.10M	351.50M	390.60M	312.60M	292.20M	254.40M
Net Income	245.40M	226.00M	257.50M	202.20M	192.10M	161.20M
Balance Sheet
Total Assets	27.33B	29.14B	30.67B	32.29B	19.67B	17.65B
Cash, Cash Equivalents and Short-Term Investments	1.55B	960.40M	6.42B	7.82B	7.17B	6.29B
Total Debt	794.50M	2.39B	3.67B	3.66B	1.25B	1.29B
Total Liabilities	23.88B	25.83B	27.44B	29.21B	17.69B	15.69B
Stockholders Equity	3.45B	3.30B	3.23B	3.07B	1.99B	1.96B
Cash Flow
Free Cash Flow	307.40M	332.00M	399.80M	523.90M	272.00M	238.10M
Operating Cash Flow	333.50M	355.00M	428.00M	534.40M	282.30M	268.30M
Investing Cash Flow	3.04B	1.76B	1.25B	-949.00M	-2.12B	-1.87B
Financing Cash Flow	-2.63B	-1.80B	-1.97B	-1.06B	1.91B	2.80B

First Interstate Bancsystem Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIBK, the sentiment is Positive. The current price of 35.4 is above the 20-day moving average (MA) of 32.79, above the 50-day MA of 31.83, and above the 200-day MA of 29.09, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 70.36 is Negative, neither overbought nor oversold. The STOCH value of 86.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FIBK.

First Interstate Bancsystem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDB	80 Outperform	$3.79B	18.64	5.51%	3.05%	11.05%	-10.78%
WSBC	78 Outperform	$3.29B	17.42	5.25%	4.26%	41.49%	-5.53%
WSFS	78 Outperform	$3.03B	11.42	10.27%	1.14%	-3.62%	10.83%
FIBK	76 Outperform	$3.67B	15.01	7.20%	5.31%	-5.43%	4.19%
EBC	74 Outperform	$4.70B	79.72	1.32%	2.59%	-1.18%	-89.13%
FHB	70 Outperform	$3.24B	12.77	9.62%	4.00%	-4.45%	16.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

First Interstate Bancsystem Corporate Events

First Interstate BancSystem Announces Leadership Transition

On November 14, 2025, First Interstate BancSystem announced a leadership transition involving Ms. Lorrie F. Asker, who moved from her role as Executive Vice President and Co-Chief Banking Officer to become an executive advisor to the CEO. This transition is part of a strategic shift to appoint Mr. Chris L. Shepler as the sole Chief Banking Officer. The change aims to ensure strategic continuity and operational excellence, with Ms. Asker assisting in the transition process until the end of the first quarter of 2026. Mr. Shepler, with extensive leadership experience in the banking sector, was appointed to his new role under a new employment agreement, reflecting the company’s focus on growth and client-centric innovation.

First Interstate BancSystem Declares Dividend Amid Earnings Report

On October 29, 2025, First Interstate BancSystem announced a dividend of $0.47 per share, payable on November 20, 2025, and reported third-quarter earnings with a net income of $71.4 million. The company showed improvements in net interest margin and reduced non-performing assets, while also executing a stock repurchase program, reflecting a strategic focus on organic growth and maintaining strong liquidity and capital levels.

First Interstate Sells Nebraska Branches to Security First

On October 16, 2025, First Interstate BancSystem, Inc. announced that its subsidiary, First Interstate Bank, entered into a Purchase and Assumption Agreement with Security First Bank. Under this agreement, Security First will acquire eleven branches in Nebraska from First Interstate, including approximately $280 million in deposits and $70 million in loans. The transaction, expected to close by early 2026, will expand Security First’s presence in Nebraska to 34 branches. This strategic move allows First Interstate to redeploy capital to accelerate growth in its strongest markets, while Security First aims to deepen its community ties and service offerings in Nebraska.

First Interstate Bancsystem Completes Branch Acquisition Deal

On October 10, 2025, First Interstate Bank completed a transaction with Enterprise Bank & Trust, resulting in the acquisition of twelve branches in Arizona and Kansas by Enterprise Bank. This transaction included the transfer of specified deposits, loans, and associated assets, potentially impacting First Interstate’s market presence in these regions.

First Interstate BancSystem Announces Management Realignment

On September 3, 2025, First Interstate BancSystem announced a realignment of its senior management, effective September 10, 2025, transitioning the Chief Banking Officer role into a Co-Chief Banking Officer position. Lorrie Asker and Chris Shepler will share the role, with Shepler covering branches in several Midwest states and Asker overseeing branches in the Western U.S. This strategic move is aimed at improving operations and aligning with practices of similar-sized financial institutions.