First Interstate Bancsystem (FIBK) AI Stock Analysis

• Market Cap: $3.05B
• Dividend Yield: 6.12%
• Average Volume (3M): 851.94K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.05
• Revenue Growth: -5.43%
• EPS Growth: 4.19%
• Country: US
• Employees: 3,481
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 102,890,620
• 10 Day Avg. Volume: 779,055
• 30 Day Avg. Volume: 851,938
• 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: 1.21
• Enterprise Value/Revenue: 2.84
• Enterprise Value/Gross Profit: 3.89
• Enterprise Value/Ebitda: 9.99
• 1Y Price Target: $35.00
• Price Target Upside: 13.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $35.00 ▲(13.90% Upside)

First Interstate Bancsystem's strong financial performance, characterized by robust profitability and improved leverage, is a key strength. The stock's attractive valuation further supports its appeal. However, technical indicators suggest a neutral trend, and operational challenges highlighted in the earnings call temper the overall outlook.

Positive Factors

Profitability Margins

Strong profitability margins such as a gross profit margin of 72.96% and a net profit margin of 18.77% indicate efficient operations and a competitive edge in maintaining cost control, which supports long-term financial stability.

Improved Leverage Ratios

Reduced leverage with a debt-to-equity ratio of 0.23 strengthens the company's financial stability, providing more flexibility for growth investments and reducing risk in economic downturns.

Strategic Branch Optimization

Divesting non-core branches allows the company to focus on improving market density and optimizing its branch network, enhancing operational efficiency and potentially increasing profitability over the long term.

Negative Factors

Decline in Loan Balances

A significant decline in loan balances can impact interest income and overall revenue, posing a challenge to growth and profitability if the trend continues amid competitive pressures and weak demand.

Decreased Net Interest Income

A decrease in net interest income, even marginal, can signal challenges in maintaining revenue streams, especially if interest rate environments or competitive pressures persist, affecting long-term earnings potential.

Challenges in Deposit Costs Management

Rising deposit costs can squeeze net interest margins, impacting profitability. Persistent increases could challenge the company's ability to maintain competitive pricing and profitability in the long term.

First Interstate Bancsystem Business Overview & Revenue Model

Company Description

First Interstate BancSystem, Inc. (FIBK) is a financial services holding company based in the United States, primarily engaged in providing a wide range of banking, investment, and financial services through its subsidiary, First Interstate Bank. The company operates in various sectors, including commercial banking, retail banking, and wealth management, serving customers across several states in the Western U.S. FIBK's core products and services include personal and commercial loans, deposit accounts, mortgage services, and investment management, catering to individuals, businesses, and institutions.

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 demonstrates strong profitability margins and improved leverage ratios. Despite a decline in revenue growth, the company maintains profitability and solid cash flow generation. The balance sheet reflects reduced leverage, enhancing financial stability.

Income Statement

First Interstate Bancsystem has shown a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 8.66%, which is a concern. However, the company maintains strong profitability metrics with a gross profit margin of 72.96% and a net profit margin of 18.77%. The EBIT and EBITDA margins are also healthy at 24.42% and 27.14%, respectively. Despite the recent revenue decline, the company has managed to sustain its profitability, which is a positive sign.

Balance Sheet

The balance sheet of First Interstate Bancsystem reflects a stable financial position with a debt-to-equity ratio of 0.23 in the TTM period, indicating low leverage. The return on equity is moderate at 7.25%, showing decent profitability relative to equity. However, the equity ratio is not explicitly provided, but the overall leverage has decreased compared to previous years, suggesting improved financial stability.

Cash Flow

The cash flow statement shows a positive trend with a 7.01% growth in free cash flow in the TTM period. The free cash flow to net income ratio is strong at 92.10%, indicating efficient cash generation relative to net income. However, the operating cash flow to net income ratio is not available, which limits a full assessment of cash flow efficiency. Overall, the cash flow position is solid, but there is room for improvement in operating cash flow metrics.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.48B	1.43B	1.18B	656.00M	680.30M
Gross Profit	953.70M	931.90M	993.60M	1.02B	653.30M	596.80M
EBITDA	371.10M	351.50M	390.60M	312.60M	292.20M	254.40M
Net Income	245.40M	226.00M	257.50M	202.20M	192.10M	161.20M
Balance Sheet
Total Assets	27.33B	29.14B	30.67B	32.29B	19.67B	17.65B
Cash, Cash Equivalents and Short-Term Investments	7.69B	960.40M	6.42B	7.82B	7.17B	6.29B
Total Debt	794.50M	2.39B	3.67B	3.66B	1.25B	1.29B
Total Liabilities	23.88B	25.83B	27.44B	29.21B	17.69B	15.69B
Stockholders Equity	3.45B	3.30B	3.23B	3.07B	1.99B	1.96B
Cash Flow
Free Cash Flow	326.90M	332.00M	399.80M	523.90M	272.00M	238.10M
Operating Cash Flow	333.50M	355.00M	428.00M	534.40M	282.30M	268.30M
Investing Cash Flow	3.04B	1.76B	1.25B	-949.00M	-2.12B	-1.87B
Financing Cash Flow	-2.63B	-1.80B	-1.97B	-1.06B	1.91B	2.80B

First Interstate Bancsystem Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.73
• 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 Positive. The current price of 30.73 is below the 20-day moving average (MA) of 31.33, below the 50-day MA of 31.42, and above the 200-day MA of 28.85, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 17.91 is Positive, 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	78 Outperform	$3.29B	16.19	5.51%	3.51%	11.05%	-10.78%
WSFS	72 Outperform	$2.95B	10.87	10.27%	1.24%	-3.62%	10.83%
WSBC	71 Outperform	$2.92B	15.38	5.25%	4.87%	41.49%	-5.53%
FIBK	71 Outperform	$3.05B	12.50	7.20%	6.12%	-5.43%	4.19%
FHB	70 Outperform	$2.98B	11.56	9.62%	4.32%	-4.45%	16.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EBC	65 Neutral	$4.16B	70.26	1.32%	2.83%	-1.18%	-89.13%

First Interstate Bancsystem Corporate Events

First Interstate BancSystem’s Earnings Call: Strategic Progress Amid Challenges

The recent earnings call for First Interstate BancSystem reflected a balanced sentiment, highlighting both strategic advancements and operational challenges. The company emphasized its initiatives in share repurchases and branch optimization, alongside improvements in credit quality and net interest margin. However, these positives were counterbalanced by challenges in loan production, declines in loan balances, and increased deposit costs.

First Interstate BancSystem Reports Stable Q3 2025 Earnings

First Interstate BancSystem, Inc. is a financial and bank holding company headquartered in Billings, Montana, focusing on community banking services across several U.S. states. The company recently reported its third-quarter earnings for 2025, highlighting a stable net income of $71.4 million, consistent with the previous quarter, and a significant increase from the same period last year. The company’s net interest margin improved to 3.34%, and it successfully reduced its other borrowed funds to zero, showcasing effective financial management.

First Interstate BancSystem Declares Dividend Amid Earnings Report

On October 29, 2025, First Interstate BancSystem announced a dividend of $0.47 per share, payable on November 20, 2025, and reported third-quarter earnings with a net income of $71.4 million. The company showed improvements in net interest margin and reduced non-performing assets, while also executing a stock repurchase program, reflecting a strategic focus on organic growth and maintaining strong liquidity and capital levels.

The most recent analyst rating on (FIBK) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on First Interstate Bancsystem stock, see the FIBK Stock Forecast page.

First Interstate Sells Nebraska Branches to Security First

On October 16, 2025, First Interstate BancSystem, Inc. announced that its subsidiary, First Interstate Bank, entered into a Purchase and Assumption Agreement with Security First Bank. Under this agreement, Security First will acquire eleven branches in Nebraska from First Interstate, including approximately $280 million in deposits and $70 million in loans. The transaction, expected to close by early 2026, will expand Security First’s presence in Nebraska to 34 branches. This strategic move allows First Interstate to redeploy capital to accelerate growth in its strongest markets, while Security First aims to deepen its community ties and service offerings in Nebraska.

The most recent analyst rating on (FIBK) stock is a Buy with a $36.00 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 Branch Acquisition Deal

On October 10, 2025, First Interstate Bank completed a transaction with Enterprise Bank & Trust, resulting in the acquisition of twelve branches in Arizona and Kansas by Enterprise Bank. This transaction included the transfer of specified deposits, loans, and associated assets, potentially impacting First Interstate’s market presence in these regions.

The most recent analyst rating on (FIBK) stock is a Hold with a $33.00 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 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.

The most recent analyst rating on (FIBK) stock is a Buy with a $37.00 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 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.

The most recent analyst rating on (FIBK) stock is a Buy with a $36.00 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 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.

The most recent analyst rating on (FIBK) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on First Interstate Bancsystem stock, see the FIBK Stock Forecast page.

First Interstate BancSystem 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.

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 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.

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.