First Interstate Bancsystem (FIBK) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: 7.05%
• Average Volume (3M): 855.68K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.08
• Revenue Growth: -0.05%
• EPS Growth: -15.66%
• Country: US
• Employees: 3,481
• Sector: Financial
• Sector Strength: 74
• Industry: Banks - Regional
• EPS (TTM): 0.49
• Shares Outstanding: 104,887,140
• 10 Day Avg. Volume: 872,622
• 30 Day Avg. Volume: 855,678
• PEG Ratio: -0.53
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.62
• Enterprise Value/Market Cap: 2.05
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 8.60
• Enterprise Value/Ebitda: 4.00
• 1Y Price Target: $30.57
• Price Target Upside: 15.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: $30.00 ▲(13.29%Upside)

First Interstate Bancsystem's stock score reflects solid financial health and strategic corporate actions that bolster its capital position. However, technical challenges and increased credit risk weigh on the overall evaluation. The dividend yield offers attractiveness for income investors, but caution is advised due to mixed technical signals and recent analyst downgrades.

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 Dynamics

FIBK's attractive market dynamics and the new CEO's shareholder-friendly practices are expected to enhance the company's story and performance.

Negative Factors

Credit Risk

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

Financial Stability

Balance sheet is expected to continue shrinking, affecting loan growth and financial stability.

Operating Leverage

Limited fee income growth and higher expenses are likely to weigh on operating leverage.

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, a stable balance sheet, and effective cash flow management. The company shows resilience with stable revenue growth and prudent leverage management, although attention to debt levels is needed.

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
1.33B	1.30B	1.03B	1.18B	638.70M	653.70M
	Gross Profit
666.80M	999.70M	954.20M	1.04B	638.70M	653.70M
	EBIT
284.20M	294.50M	336.80M	257.10M	211.20M	235.50M
	EBITDA
335.80M	294.50M	0.00	288.80M	244.00M	246.00M
	Net Income Common Stockholders
217.80M	226.00M	257.50M	202.20M	192.10M	161.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.89B	8.12B	6.42B	7.82B	7.17B	6.29B
	Total Assets
28.28B	29.14B	30.67B	32.29B	19.67B	17.65B
	Total Debt
130.20M	2.39B	3.67B	2.61B	199.40M	199.40M
	Net Debt
-260.20M	1.49B	3.09B	2.79B	-1.09B	-2.08B
	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
345.80M	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: 26.48
• 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 26.48 is below the 20-day moving average (MA) of 27.18, below the 50-day MA of 26.57, and below the 200-day MA of 29.48, indicating a bearish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 18.59 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
WSBC	73 Outperform	$2.91B	19.86	3.38%	4.86%	17.74%	-35.93%
WSFS	72 Outperform	$2.91B	11.53	10.25%	1.31%	5.14%	―
CBU	71 Outperform	$2.91B	15.30	10.91%	3.34%	14.34%	12.98%
FIBK	70 Outperform	$2.80B	12.65	6.63%	7.05%	-0.05%	-15.66%
CATY	69 Neutral	$3.01B	10.84	10.07%	3.14%	2.76%	-12.43%
FHB	66 Neutral	$2.93B	12.67	9.11%	4.44%	-0.47%	5.97%
Sector *	64 Neutral	$12.87B	9.76	7.85%	78.04%	12.07%	-7.94%

First Interstate Bancsystem Corporate Events

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.

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.

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.

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.