First Interstate Bancsystem (FIBK) AI Stock Analysis

• Market Cap: $3.37B
• Dividend Yield: 5.83%
• Average Volume (3M): 957.35K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.06
• Revenue Growth: -2.11%
• EPS Growth: -8.95%
• Country: US
• Employees: 3,481
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 104,856,750
• 10 Day Avg. Volume: 934,560
• 30 Day Avg. Volume: 957,350
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $35.17
• Price Target Upside: 9.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: $34.00 ▲(5.89% Upside)

First Interstate Bancsystem's strong financial performance and attractive valuation are offset by technical weaknesses and challenges highlighted in the earnings call. The stock's high dividend yield and stable profit margins are significant positives, but declining revenue growth and liquidity concerns present risks.

Positive Factors

Strong Capital Position

A strong capital position provides financial stability and flexibility, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Proactive Credit Risk Management

Effective credit risk management ensures asset quality and reduces potential losses, supporting long-term profitability and financial health.

New Stock Buyback Program

The buyback program signals management's confidence in the company's future and enhances shareholder value by reducing share count and potentially increasing earnings per share.

Negative Factors

Declining Revenue Growth

A decline in revenue growth can indicate challenges in market expansion or product demand, potentially impacting long-term profitability and competitive positioning.

Increase in Criticized Loans

Rising criticized loans suggest deteriorating asset quality, which could lead to higher provisions and impact financial stability if not managed effectively.

Loan Portfolio Decline

A declining loan portfolio may reflect reduced lending opportunities or strategic shifts, potentially affecting interest income and overall growth prospects.

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 primarily through interest income from loans and investments, as well as non-interest income from various fees and services. The key revenue streams include interest earned on loans provided to consumers and businesses, which typically account for the largest portion of income. Additionally, the company earns fees from deposit accounts, service charges, and transaction fees. Non-interest income is also derived from wealth management services, mortgage origination fees, and other banking services. Partnerships with financial technology firms and investment organizations further enhance FIBK's service offerings and revenue potential, allowing the company to expand its customer base and improve operational efficiency.

First Interstate Bancsystem Financial Statement Overview

Summary

First Interstate Bancsystem shows strong profit margins and improved leverage, but faces challenges with declining revenue growth and potential liquidity issues.

Income Statement

First Interstate Bancsystem shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth at -1.92%, contrasting with previous positive growth trends. Gross profit margin remains strong at 65.36%, although it has decreased from prior years. Net profit margin is stable at 16.04%, reflecting consistent profitability. EBIT and EBITDA margins are healthy, indicating efficient operations despite revenue challenges.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.34 in the TTM period, showing reduced leverage compared to previous years. Return on equity is stable at 6.82%, indicating consistent returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

Cash flow analysis reveals some concerns with a decline in free cash flow growth at -6.12% in the TTM period. The operating cash flow to net income ratio is low at 0.014, suggesting potential cash flow challenges. However, the free cash flow to net income ratio remains strong at 92.10%, indicating effective cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.48B	1.43B	1.18B	656.00M	680.30M
Gross Profit	935.30M	931.90M	993.60M	1.02B	653.30M	596.80M
EBITDA	350.30M	351.50M	390.60M	312.60M	292.20M	254.40M
Net Income	229.50M	226.00M	257.50M	202.20M	192.10M	161.20M
Balance Sheet
Total Assets	27.57B	29.14B	30.67B	32.29B	19.67B	17.65B
Cash, Cash Equivalents and Short-Term Investments	1.19B	960.40M	6.42B	7.82B	7.17B	6.29B
Total Debt	1.17B	2.39B	3.67B	3.66B	1.25B	1.29B
Total Liabilities	24.14B	25.83B	27.44B	29.21B	17.69B	15.69B
Stockholders Equity	3.42B	3.30B	3.23B	3.07B	1.99B	1.96B
Cash Flow
Free Cash Flow	305.50M	332.00M	399.80M	523.90M	272.00M	238.10M
Operating Cash Flow	331.70M	355.00M	428.00M	534.40M	282.30M	268.30M
Investing Cash Flow	2.79B	1.76B	1.25B	-949.00M	-2.12B	-1.87B
Financing Cash Flow	-2.99B	-1.80B	-1.97B	-1.06B	1.91B	2.80B

First Interstate Bancsystem Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 32.11 is above the 20-day moving average (MA) of 31.41, above the 50-day MA of 31.97, and above the 200-day MA of 29.22, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.13 is Neutral, neither overbought nor oversold. The STOCH value of 85.06 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	―	$3.34B	16.64	5.51%	3.43%	11.09%	-10.78%
WSFS	―	$2.97B	11.08	10.27%	1.21%	-3.49%	―
WSBC	―	$2.95B	15.61	5.25%	4.94%	41.12%	-5.53%
FHB	―	$3.05B	12.22	9.62%	4.20%	-4.57%	16.92%
FIBK	―	$3.37B	14.53	6.91%	5.83%	-2.11%	-8.95%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EBC	―	$3.64B	70.05	1.33%	2.83%	-1.18%	-89.14%

First Interstate Bancsystem Corporate Events

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.

First Interstate Bancsystem Appoints Renu Agrawal as Director

On August 29, 2025, First Interstate BancSystem, Inc. appointed Ms. Renu Agrawal as a Class III director on its Board, with her term set to expire at the 2027 annual meeting of shareholders. Ms. Agrawal brings extensive experience from her previous roles at Wells Fargo, ValleyCrest Companies, Quisic Corporation, Polaroid, and McKinsey, and she has served on the Boards of Luther Burbank Corporation and Woodruff Sawyer. Her appointment follows the Board’s decision to increase its size, and she will serve on the Governance and Nominating Committee and Technology, Innovation and Operations Committee. The Board has confirmed her independence under NASDAQ rules, and she will receive compensation in line with other non-employee directors.

First Interstate BancSystem Announces New Stock Buyback Program

On August 28, 2025, First Interstate BancSystem, Inc. announced the adoption of a new stock repurchase program authorizing the buyback of up to $150 million of its common stock by March 31, 2027. The program allows for repurchases through various methods, including open market purchases and private transactions, and aims to optimize shareholder value while considering market conditions and the company’s financial performance.

First Interstate BancSystem Redeems 5.25% Subordinated Notes

On August 15, 2025, First Interstate BancSystem, Inc. redeemed all of its outstanding 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030, effectively releasing itself from obligations under these notes. This strategic financial maneuver was executed in accordance with the terms of the Indenture and its supplements, allowing the company to focus on its remaining financial obligations, including its outstanding 7.625% Fixed-to-Floating Rate Subordinated Notes due 2035.

First Interstate BancSystem Appoints New Board Director

On August 13, 2025, First Interstate BancSystem, Inc. appointed Mr. Michael L. Scudder as a Class I director on its Board, with his term set to expire at the 2028 annual meeting of shareholders. Mr. Scudder, who retired as Executive Chairman of Old National Bancorp in January 2024, brings extensive experience from his 38-year career in commercial banking, including leadership roles at First Midwest Bancorp. His appointment fills a vacancy created by the Board’s decision to expand its size, and he is deemed independent under NASDAQ rules. Mr. Scudder will receive compensation similar to other non-employee directors and has not yet been assigned to any committees.

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.

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.

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.