First Interstate Bancsystem (FIBK) AI Stock Analysis

• Market Cap: $3.02B
• Dividend Yield: 6.57%
• Average Volume (3M): 925.91K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.07
• Revenue Growth: -8.29%
• EPS Growth: -8.95%
• Country: US
• Employees: 3,481
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 104,887,140
• 10 Day Avg. Volume: 775,460
• 30 Day Avg. Volume: 925,913
• PEG Ratio: -3.43
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.50
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 3.99
• Enterprise Value/Ebitda: 2.56
• 1Y Price Target: $32.33
• Price Target Upside: 12.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: $32.00 ▲(11.15%Upside)

First Interstate Bancsystem's strong financial performance and attractive valuation are key strengths, providing a solid foundation amidst mixed technical signals and strategic challenges highlighted in the earnings call. Corporate actions support long-term growth but analyst sentiment remains cautious.

Positive Factors

Loan Growth

Loan growth is expected to improve in the second half of the year, with the funding mix showing signs of improvement.

Management and Strategy

FIBK's new CEO is expected to instill greater discipline, leading to improved credit and sustained organic growth.

Valuation

Analyst sees upside as compelling with FIBK trading at a discount to peers.

Negative Factors

Balance Sheet

The shrinking balance sheet and aggressive deposit beta assumptions put future net interest income guidance into question.

Credit Risk

There is significant credit tail-risk from criticized loans, which have increased substantially both quarter-over-quarter and year-over-year.

Earnings

Investors are concerned about capital priorities, especially with the potential restructuring costs of the bond portfolio impacting earnings.

First Interstate Bancsystem Business Overview & Revenue Model

Company Description

First Interstate BancSystem, Inc. (FIBK) is a regional financial and bank holding company headquartered in Billings, Montana. It operates a network of community banking offices across several states in the Western and Midwestern United States. The company offers a variety of banking products and services, including personal banking, business banking, mortgage lending, wealth management, and investment services. First Interstate BancSystem is known for its commitment to serving local communities and providing personalized financial solutions.

How the Company Makes Money

First Interstate BancSystem generates revenue primarily through its core banking operations. The company earns interest income from loans extended to individuals and businesses, including commercial loans, residential real estate loans, and consumer loans. Additionally, it makes money through interest on its investment securities portfolio. Another significant revenue stream is non-interest income, which includes fees generated from services such as deposit account maintenance, transaction processing, and other banking services. Wealth management and investment services also contribute to the company's earnings. First Interstate BancSystem benefits from strategic partnerships with various financial service providers, enhancing its ability to offer diverse and competitive financial products to its clients. The company's performance is influenced by factors such as interest rates, economic conditions in its operating regions, and regulatory requirements.

First Interstate Bancsystem Financial Statement Overview

Summary

First Interstate Bancsystem demonstrates strong financial health, with consistent profitability, stable balance sheet metrics, and effective cash flow management. The company is well-positioned to navigate market challenges, though maintaining revenue growth and managing debt levels will be key to sustaining long-term stability.

Income Statement

First Interstate Bancsystem shows strong profitability with a consistent gross profit margin and net profit margin. The TTM data indicates a slight decrease in EBIT margin, but the company maintained stable revenue growth over recent periods, demonstrating resilience in a competitive regional banking market.

Balance Sheet

The balance sheet reflects a solid equity position with a moderate debt-to-equity ratio, indicating prudent leverage management. The equity ratio remains strong, enhancing the company's financial stability, although there was a minor decline in overall assets.

Cash Flow

Cash flows are robust, with healthy operating cash flow and free cash flow to net income ratios. Although there were fluctuations in investing and financing activities, the company exhibits solid cash management capabilities, supporting future growth and operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.48B	1.43B	1.18B	656.00M	680.30M
Gross Profit	922.00M	931.90M	993.60M	1.02B	653.30M	596.80M
EBITDA	335.80M	351.50M	390.60M	312.60M	292.20M	254.40M
Net Income	217.80M	226.00M	257.50M	202.20M	192.10M	161.20M
Balance Sheet
Total Assets	28.28B	29.14B	30.67B	32.29B	19.67B	17.65B
Cash, Cash Equivalents and Short-Term Investments	982.60M	960.40M	6.42B	7.82B	7.17B	6.29B
Total Debt	1.78B	2.39B	3.67B	3.66B	1.25B	1.29B
Total Liabilities	24.92B	25.83B	27.44B	29.21B	17.69B	15.69B
Stockholders Equity	3.36B	3.30B	3.23B	3.07B	1.99B	1.96B
Cash Flow
Free Cash Flow	325.40M	332.00M	399.80M	523.90M	272.00M	238.10M
Operating Cash Flow	345.90M	355.00M	428.00M	534.40M	282.30M	268.30M
Investing Cash Flow	2.06B	1.76B	1.25B	-949.00M	-2.12B	-1.87B
Financing Cash Flow	-2.17B	-1.80B	-1.97B	-1.06B	1.91B	2.80B

First Interstate Bancsystem Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.79
• 50DMA: Positive
• 100DMA: Positive
• 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 28.79 is below the 20-day moving average (MA) of 30.33, above the 50-day MA of 28.63, and below the 200-day MA of 29.60, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 42.47 is Neutral, neither overbought nor oversold. The STOCH value of 14.88 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
WSFS	78 Outperform	$3.11B	12.01	10.32%	1.09%	0.39%	―
INDB	77 Outperform	$3.18B	14.35	6.29%	3.52%	3.68%	-10.83%
FHB	75 Outperform	$3.05B	12.54	9.40%	4.14%	-2.63%	12.05%
FIBK	73 Outperform	$3.02B	12.99	6.91%	6.57%	-8.29%	-8.95%
Sector *	67 Neutral	$17.78B	11.60	9.11%	3.88%	10.92%	-3.96%
WSBC	67 Neutral	$2.88B	18.11	4.25%	4.88%	30.51%	-21.64%
EBC	59 Neutral	$3.27B	24.06	-1.89%	3.11%	4.81%	-111.50%

First Interstate Bancsystem Corporate Events

First Interstate BancSystem Reports Strong Q2 Earnings

On July 29, 2025, First Interstate BancSystem, Inc. reported its second-quarter earnings, revealing a net income of $71.7 million, an increase from previous quarters. The company declared a dividend of $0.47 per share, payable on August 21, 2025. Key financial highlights include an increased net interest margin, a significant reduction in borrowed funds, and improved capital ratios. The company also completed the outsourcing of its consumer credit card portfolio, resulting in a gain. Despite an increase in criticized loans due to commercial real estate downgrades, the company maintained stability in non-performing assets and net charge-offs, reflecting its proactive credit risk management approach.

The most recent analyst rating on (FIBK) stock is a Sell with a $28.00 price target. To see the full list of analyst forecasts on First Interstate Bancsystem stock, see the FIBK Stock Forecast page.

First Interstate BancSystem to Redeem Subordinated Notes

On July 3, 2025, First Interstate BancSystem, Inc. announced its intention to redeem its outstanding 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030, originally issued in May 2020, with a total principal amount of $100 million. The redemption will occur on August 15, 2025, at a price equal to 100% of the principal amount plus accrued interest, marking a significant financial maneuver that will result in no outstanding notes post-redemption.

The most recent analyst rating on (FIBK) stock is a Sell with a $28.00 price target. To see the full list of analyst forecasts on First Interstate Bancsystem stock, see the FIBK Stock Forecast page.

First Interstate Bancsystem Completes $125M Subordinated Notes Offering

On June 10, 2025, First Interstate BancSystem, Inc. completed a public offering of $125 million in subordinated notes due 2035, initially treated as Tier 2 capital for regulatory purposes. The notes, bearing a fixed-to-floating interest rate, are unsecured and subordinated, with redemption options starting June 15, 2030, subject to Federal Reserve approval, impacting the company’s capital structure and financial strategy.

The most recent analyst rating on (FIBK) stock is a Sell with a $28.00 price target. To see the full list of analyst forecasts on First Interstate Bancsystem stock, see the FIBK Stock Forecast page.

First Interstate Bancsystem Announces $125M Note Offering

On June 5, 2025, First Interstate BancSystem, Inc. announced the pricing of its public offering of $125 million in 7.625% Fixed-to-Floating Rate Subordinated Notes due 2035. The offering is expected to close on June 10, 2025, with net proceeds estimated at $123.1 million, which will be used to redeem existing notes and for general corporate purposes. This strategic financial move aims to strengthen the company’s capital structure and support its growth initiatives, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (FIBK) stock is a Sell with a $25.00 price target. To see the full list of analyst forecasts on First Interstate Bancsystem stock, see the FIBK Stock Forecast page.

First Interstate BancSystem Announces Branch Sales Strategy

First Interstate BancSystem, Inc. announced that it will be using a presentation during investor meetings starting June 2, 2025. The presentation, which is available on the company’s website, outlines the company’s financial highlights and strategic positioning, including its planned sale of 12 branches in Arizona and Kansas to Enterprise Bank & Trust. This move is part of the company’s strategy to focus on its core markets, potentially impacting its market share and operational focus.

The most recent analyst rating on (FIBK) stock is a Sell with a $28.00 price target. To see the full list of analyst forecasts on First Interstate Bancsystem stock, see the FIBK Stock Forecast page.

First Interstate Bancsystem Appoints New CFO David Della Camera

On June 1, 2025, First Interstate BancSystem, Inc. completed the employment agreement with David P. Della Camera, who succeeded Marcy D. Mutch as Executive Vice President and Chief Financial Officer. The agreement includes terms for salary, severance, and non-competition clauses, reflecting the company’s structured approach to leadership transitions. This move is part of a previously announced succession plan, emphasizing continuity in financial leadership. Mr. Della Camera, who joined the company in 2021, has held various senior finance roles, providing him with a deep understanding of the company’s financial operations. Marcy D. Mutch will continue to support the company as an executive advisor through 2025 and as a consultant until the end of 2026.

The most recent analyst rating on (FIBK) stock is a Sell with a $28.00 price target. To see the full list of analyst forecasts on First Interstate Bancsystem stock, see the FIBK Stock Forecast page.

First Interstate BancSystem Appoints New Board Director

On May 21, 2025, First Interstate BancSystem, Inc. appointed Mr. James R. Scott, Jr. as a Class III director on its Board, filling the vacancy left by his father, James R. Scott. Mr. Scott, who previously served on the Board and as a Vice President at First Interstate Bank, will not be considered independent under NASDAQ rules but will receive compensation similar to other non-employee directors. The Board also approved amended bylaws, introducing a director resignation policy and implementing a plurality vote standard for contested elections, effective immediately.

The most recent analyst rating on (FIBK) stock is a Sell with a $28.00 price target. To see the full list of analyst forecasts on First Interstate Bancsystem stock, see the FIBK Stock Forecast page.