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First Interstate Bancsystem
(NASDAQ:FIBK)
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Rating:66Neutral
Price Target:
$42.00
▲(10.18% Upside)
Action:Reiterated
Date:08/04/26
FIBK scores in the mid-range primarily due to mixed financial performance: improved profitability and a notably de-risked balance sheet are offset by a sharp TTM revenue decline and softer operating cash flow trends. The earnings call reinforces this tradeoff, with margin expansion and strong capital returns tempered by guidance for near-term loan/deposit contraction and lower revenue growth. Valuation is a clear positive (moderate P/E and high dividend yield), while technicals are mildly supportive but not strong.
Positive Factors
Strong capital & active returns
High CET1 (14.54%) combined with sustained repurchases and a recurring dividend indicate a durable capital buffer and disciplined capital allocation. This supports ongoing shareholder returns while preserving capacity to fund strategic investments or absorb credit losses, enhancing long-term franchise optionality.
Negative Factors
Near-term earning-asset contraction
Accelerated payoffs and explicit guidance for a smaller loan base materially shrink the interest-earning asset pool. A sustained reduction in loans reduces NII potential and operating scale, making revenue and cash-flow generation more dependent on margin gains or noninterest income to sustain earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong capital & active returns
High CET1 (14.54%) combined with sustained repurchases and a recurring dividend indicate a durable capital buffer and disciplined capital allocation. This supports ongoing shareholder returns while preserving capacity to fund strategic investments or absorb credit losses, enhancing long-term franchise optionality.
Read all positive factors
First Interstate Bancsystem (FIBK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.69B
Dividend Yield4.94%
Average Volume (3M)1.24M
Price to Earnings (P/E)11.7
Beta (1Y)1.00
Revenue Growth-8.83%
EPS Growth45.98%
CountryUS
Employees3,376
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.25
Shares Outstanding97,142,876
10 Day Avg. Volume1,190,706
30 Day Avg. Volume1,236,729
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)1.03
Price to Sales (P/S)3.35
P/FCF Ratio12.78
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$38.75Price Target Upside1.65% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.82
Revenue Forecast (FY)$993.35M
First Interstate Bancsystem Business Overview & Revenue Model
Company Description
First Interstate BancSystem, Inc. functions as the parent company of First Interstate Bank, delivering a comprehensive suite of financial products and services across the United States. Its offerings encompass conventional deposit accounts such as...
How the Company Makes Money
FIBK generates revenue primarily through traditional banking activities conducted by First Interstate Bank. A key source is net interest income: the bank earns interest and fees on loans (such as commercial, real estate, and consumer loans) and on...
First Interstate Bancsystem Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: clear progress on margin expansion, profitability (net income +39% QoQ), capital returns (dividend and meaningful buybacks), and improved credit metrics (criticized loans down 9.3% QoQ, 22% YoY). Offsetting these positives are material declines in loan and deposit balances ($447M and $441.7M respectively), elevated and accelerating payoff activity with guidance pointing to a smaller near-term earning asset base and lower revenue growth, higher targeted expenses for branding and branch work, and an uptick in net charge-offs. Management emphasizes long-term franchise improvement and disciplined capital deployment while acknowledging near-term balance-sheet contraction and variability.Positive Updates
Strong Quarter-Over-Quarter Earnings Improvement
Net income of $83.9M (or $0.87 per diluted share) in Q2 vs $60.2M (or $0.61) in Q1, an increase of approximately 39% quarter-over-quarter, driven by higher NII and a one-time branch transaction gain.
Negative Updates
Material Loan Balance Contraction
Total loans decreased by $447M in Q2. Management attributed the decline primarily to elevated payoffs (including criticized loans, non-relationship credits, secondary market activity, and loans from divested markets). They expect accelerated payoff activity to continue through the remainder of 2026, creating near-term variability and a smaller earning asset base.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarter-Over-Quarter Earnings Improvement
Net income of $83.9M (or $0.87 per diluted share) in Q2 vs $60.2M (or $0.61) in Q1, an increase of approximately 39% quarter-over-quarter, driven by higher NII and a one-time branch transaction gain.
Read all positive updates
Company Guidance
Guidance: management now expects a smaller near‑term balance sheet with lower ending loans and a smaller earning‑asset base (Q2 loans down $447M; guidance implies roughly a $600M midpoint decline in H2), driven by accelerated payoffs (out‑of‑market portfolio ~mid‑$600M with ~$100M of payoffs this quarter and ~$2.2B of adjustable/fixed loans maturing through 2027, ~16% of the loan book) that are likely to continue through the rest of 2026; they expect average earning assets to bottom in 3Q, ending earning assets to be flat-to-up in 3Q and higher into the back half of the year. The outlook assumes continued pressure in higher‑cost deposit categories even as deposit mix improves (total deposits down $441.7M to $21.4B; average deposits down $212.3M) and deposit costs continue to trend lower (total deposit cost 1.17% in Q2 vs 1.33% prior year; total funding costs down 4 bps QoQ; deposit costs down 3 bps QoQ). Mortgage production is forecast to decline meaningfully near‑term, increasing investment‑security composition (investment yields 2.98% vs 2.72% prior year) and lowering near‑term revenue growth expectations, though this is partially offset by fixed‑asset repricing that expanded fully tax‑equivalent NIM to 3.48% in Q2 (3.43% in Q1; +16 bps over 12 months) and should drive sequential NII/NIM improvement into 2027. Expense guidance incorporates continued reinvestment (branding and data, plus 14 RMs added YTD) while maintaining structurally lower staffing; capital deployment remains active (Q2 repurchases ~1.9M shares/$69M; cumulative ~8M/$270M; authorization increased by $150M to $450M) alongside a $0.47 quarterly dividend (~5.3% annualized yield in Q2); capital ratios support this (CET1 14.54%, leverage 9.59%).First Interstate Bancsystem Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 953.30M | 1.06B | 1.48B | 1.43B | 1.18B | 656.00M |
| Gross Profit | 1.00B | 1.03B | 931.90M | 993.60M | 1.02B | 653.30M |
| EBITDA | 460.70M | 442.50M | 351.50M | 390.60M | 312.60M | 292.20M |
| Net Income | 324.30M | 302.10M | 226.00M | 257.50M | 202.20M | 192.10M |
Balance Sheet | ||||||
| Total Assets | 25.89B | 26.64B | 29.14B | 30.67B | 32.29B | 19.67B |
| Cash, Cash Equivalents and Short-Term Investments | 8.33B | 358.20M | 960.40M | 6.42B | 7.82B | 7.17B |
| Total Debt | 751.90M | 775.70M | 2.39B | 3.67B | 3.66B | 1.25B |
| Total Liabilities | 22.56B | 23.19B | 25.83B | 27.44B | 29.21B | 17.69B |
| Stockholders Equity | 3.32B | 3.45B | 3.30B | 3.23B | 3.07B | 1.99B |
Cash Flow | ||||||
| Free Cash Flow | 256.20M | 277.80M | 332.00M | 399.80M | 523.90M | 272.00M |
| Operating Cash Flow | 271.90M | 305.60M | 355.00M | 428.00M | 534.40M | 282.30M |
| Investing Cash Flow | 990.20M | 2.31B | 1.76B | 1.25B | -949.00M | -2.12B |
| Financing Cash Flow | -1.19B | -2.20B | -1.80B | -1.97B | -1.06B | 1.91B |
First Interstate Bancsystem Technical Analysis
Positive
38.12
Price Trends
37.44
Positive
35.62
Positive
34.70
Positive
Market Momentum
0.14
Positive
53.41
Neutral
53.57
Neutral
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 38.12 is below the 20-day moving average (MA) of 38.62, above the 50-day MA of 37.44, and above the 200-day MA of 34.70, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 53.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FIBK.
First Interstate Bancsystem Risk Analysis
First Interstate Bancsystem disclosed 43 risk factors in its most recent earnings report. First Interstate Bancsystem reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Interstate Bancsystem Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $3.55B | 11.79 | 10.07% | 2.96% | 11.65% | 13.28% | |
77 Outperform | $3.41B | 15.04 | 11.34% | 2.80% | 6.69% | 17.23% | |
77 Outperform | $5.57B | 13.43 | 10.12% | 8.35% | 211.11% | ― | |
75 Outperform | $3.63B | 18.52 | 8.81% | 0.78% | 31.61% | 1.18% | |
71 Outperform | $3.79B | 15.00 | 13.48% | 1.68% | -2.61% | 6.79% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $3.69B | 11.70 | 9.55% | 4.93% | -8.83% | 45.98% |
* Financial Sector Average
FIBK
First Interstate Bancsystem
38.40
10.65
38.37%
BANF
BancFirst
114.59
-6.05
-5.02%
CBU
Community Bank System
66.75
15.51
30.26%
FFBC
First Financial Bancorp
34.52
11.46
49.71%
MCHB
Mechanics Bancorp Class A
16.69
4.98
42.55%
NIC
Nicolet Bankshares
175.13
49.49
39.39%
First Interstate Bancsystem Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
First Interstate BancSystem Declares Dividend, Highlights Strong Quarter
Positive
Jul 23, 2026
First Interstate BancSystem reported second-quarter 2026 net income of $83.9 million, or $0.87 per diluted share, up from both the prior quarter and the same period a year earlier, driven in part by a $19.5 million gain from the April 10 sale of e...
Business Operations and StrategyExecutive/Board Changes
First Interstate BancSystem expands board with new directors
Positive
Jul 17, 2026
On July 13, 2026, First Interstate BancSystem, Inc. expanded its Board of Directors by appointing Matthew Ritter and Kevin Turner as Class II directors, with terms running until the 2029 annual meeting of shareholders. Their appointments follow th...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
First Interstate BancSystem Ousts General Counsel, Starts Search
Neutral
Jul 9, 2026
On July 9, 2026, First Interstate BancSystem terminated the employment of Executive Vice President and General Counsel/Corporate Secretary Kirk D. Jensen, on an involuntary and without-cause basis under his employment agreement. The bank will cond...
Executive/Board ChangesShareholder Meetings
Board Changes and Shareholder Approvals at First Interstate
Neutral
May 29, 2026
On May 27, 2026, First Interstate BancSystem, Inc. implemented its director retirement policy, resulting in the automatic retirement and resignation of directors Patricia L. Moss, David L. Jahnke, and Stephen M. Lacy upon each reaching the age of ...
Business Operations and StrategyExecutive/Board Changes
First Interstate BancSystem Reassigns COO to Advisory Role
Negative
May 13, 2026
On May 11, 2026, First Interstate BancSystem, Inc. terminated, without cause, the employment of Kristina Robbins as Executive Vice President and Chief Operations Officer and simultaneously moved her into a temporary role as Executive Advisor to Ch...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.