First Interstate Bancsystem (FIBK) AI Stock Analysis

• Market Cap: $3.66B
• Dividend Yield: 5.24%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.02
• Revenue Growth: -5.43%
• EPS Growth: 4.19%
• Country: US
• Employees: 3,481
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.08
• Shares Outstanding: 102,890,620
• 10 Day Avg. Volume: 788,641
• 30 Day Avg. Volume: 1,051,486
• PEG Ratio: 0.34
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 3.35
• P/FCF Ratio: 10.25
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 3.12
• Enterprise Value/Gross Profit: 4.03
• Enterprise Value/Ebitda: 9.71
• 1Y Price Target: $38.80
• Price Target Upside: 5.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.67
• Revenue Forecast (FY): $1.00B

• Rating: 68 Neutral
• Price Target: $40.00 ▲(8.73% Upside)
• Action: Downgraded Date: 02/27/26
• Date: Action: Downgraded 02/27/26

The score is driven primarily by improved financial resilience (major deleveraging and stronger profitability/cash coverage) and supportive valuation (moderate P/E plus a high dividend yield). Offsetting these positives are uncertain top-line/loan growth and mixed near-term momentum, with earnings guidance constructive on margin but tempered by near-term NII headwinds and some non-recurring Q4 benefits.

Positive Factors

Balance sheet deleveraging

Sharp deleveraging and higher equity materially improve financial flexibility and lower funding risk. Reduced other borrowed funds and stronger capital ratios expand capacity for lending, dividends, and buybacks, supporting durable solvency and strategic optionality over the medium term.

Free cash flow coverage

Free cash flow fully covering net income signals sustainable internal funding for dividends, buybacks and reinvestment without heavy external financing. Consistent operating cash flow supports capital returns and balance sheet repair, enhancing long-term shareholder optionality and resilience.

Net interest margin expansion

Management's plan to reinvest into higher-yielding securities and originate loans in the mid-6% range implies a structural uplift to margin over time. If executed, higher core NIM can sustainably raise net interest income and profitability even with modest loan growth, improving earnings durability.

Negative Factors

Sharp revenue decline

A large year-over-year revenue drop undermines scale economics and questions the durability of recently improved margins. Persistent top-line weakness reduces capacity to cover fixed costs, constrains reinvestment, and makes earnings more sensitive to cyclical shocks over the next several quarters.

Loan and deposit runoff

Material loan and deposit reductions shrink the earning asset base and deposit funding, limiting NII upside and requiring redeployment of liquidity into new assets. Branch divestitures and indirect portfolio runoff also remove customer relationships, raising execution risk for restoring organic loan growth.

One-time gains and credit volatility

Reliance on a large, non-recurring gain to boost earnings obscures core profitability; concurrent spike in net charge-offs shows credit volatility and potential concentration risk. These factors complicate forecasting of sustainable earnings and may pressure capital allocation decisions.

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

Earnings and margins improved materially in 2025 and free cash flow fully covered net income, while the balance sheet strengthened meaningfully via sharp deleveraging and improved capital/ROE. The main offset is the sharp 2025 revenue decline and slight asset contraction, which raise questions about the durability of the stronger profitability.

Income Statement

Profitability improved meaningfully in 2025, with net income rising to $302.1M (from $226.0M in 2024) and a higher net margin (28.5% vs. 15.3%), alongside stronger operating profitability. The key offset is growth: 2025 revenue fell sharply (-24.0% year over year) after modest growth in 2024, creating a more volatile top-line trajectory despite the margin rebound.

Balance Sheet

Leverage reduced sharply in 2025, with total debt down to $775.7M (from $2.39B in 2024) and debt-to-equity improving to 0.23 (from 0.72), which materially strengthens financial flexibility. Equity has steadily grown over time (to $3.45B in 2025) and returns on equity improved to 8.8% (from 6.8%). A watch item is the slight decline in total assets in 2025 versus 2024, which may reflect balance sheet contraction.

Cash Flow

Cash generation is steady: operating cash flow was $346.3M in 2025 versus $355.0M in 2024, while free cash flow grew 12.7% in 2025 and fully covered net income (free cash flow to net income of 1.0). The main weakness is limited cash flow relative to the asset base (operating cash flow coverage remains low), which can reduce flexibility in weaker operating environments even if absolute cash flow is positive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.06B	1.48B	1.43B	1.18B	656.00M
Gross Profit	1.03B	931.90M	993.60M	1.02B	653.30M
EBITDA	391.70M	351.50M	390.60M	312.60M	292.20M
Net Income	302.10M	226.00M	257.50M	202.20M	192.10M
Balance Sheet
Total Assets	26.64B	29.14B	30.67B	32.29B	19.67B
Cash, Cash Equivalents and Short-Term Investments	7.99B	960.40M	6.42B	7.82B	7.17B
Total Debt	775.70M	2.39B	3.67B	3.66B	1.25B
Total Liabilities	23.19B	25.83B	27.44B	29.21B	17.69B
Stockholders Equity	3.45B	3.30B	3.23B	3.07B	1.99B
Cash Flow
Free Cash Flow	346.30M	332.00M	399.80M	523.90M	272.00M
Operating Cash Flow	346.30M	355.00M	428.00M	534.40M	282.30M
Investing Cash Flow	0.00	1.76B	1.25B	-949.00M	-2.12B
Financing Cash Flow	-311.40M	-1.80B	-1.97B	-1.06B	1.91B

First Interstate Bancsystem Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 36.79 is below the 20-day moving average (MA) of 37.06, above the 50-day MA of 36.35, and above the 200-day MA of 31.30, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 15.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FIBK.

First Interstate Bancsystem Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDB	79 Outperform	$3.98B	18.13	6.25%	3.05%	11.05%	-10.78%
WSFS	76 Outperform	$3.58B	12.87	10.27%	1.16%	-3.62%	10.83%
WSBC	75 Outperform	$3.39B	15.87	6.54%	4.35%	41.49%	-5.53%
FHB	72 Outperform	$3.10B	11.40	9.62%	3.96%	-4.45%	16.92%
EBC	70 Outperform	$4.87B	47.51	2.22%	2.72%	-1.18%	-89.13%
FIBK	68 Neutral	$3.66B	12.10	8.95%	5.24%	-5.43%	4.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

First Interstate Bancsystem Corporate Events

First Interstate BancSystem Reports Strong Q4 Earnings Growth

On January 28, 2026, First Interstate BancSystem reported that fourth-quarter 2025 net income rose to $108.8 million, or $1.08 per diluted share, up from $71.4 million in the prior quarter and $52.1 million a year earlier, while full-year 2025 net income increased to $302.1 million, or $2.94 per diluted share, from $226.0 million in 2024. Results were boosted by a $62.7 million gain from the October 10, 2025 sale of its Arizona and Kansas branches, which also reduced loans and deposits but helped drive higher net interest margin, elimination of other borrowed funds, lower non-performing assets, improved capital ratios, and continued progress on asset quality despite elevated but moderating net charge-offs. The company continued executing a strategic repositioning of its branch network, with previously announced closures of four Nebraska branches and single locations in Minnesota and North Dakota scheduled for February 2026 and a pending sale of 11 Nebraska branches expected to close in early second-quarter 2026, while the board expanded the stock repurchase authorization to a total of $300 million and declared a quarterly dividend of $0.47 per share payable on February 20, 2026 to shareholders of record on February 10, 2026; the company also posted an updated corporate presentation providing an overview of its operations and financial performance.

The most recent analyst rating on (FIBK) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on First Interstate Bancsystem stock, see the FIBK Stock Forecast page.