First Interstate Bancsystem (FIBK) AI Stock Analysis

• Market Cap: $3.16B
• Dividend Yield: 6.22%
• Average Volume (3M): 789.71K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.11
• Revenue Growth: -2.11%
• EPS Growth: -8.95%
• Country: US
• Employees: 3,481
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 104,856,750
• 10 Day Avg. Volume: 694,282
• 30 Day Avg. Volume: 789,714
• 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: 1.18
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: 4.03
• Enterprise Value/Ebitda: 11.07
• 1Y Price Target: $32.29
• Price Target Upside: 7.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: $32.00 ▲(6.56% Upside)

First Interstate Bancsystem's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The attractive valuation and stable technical indicators further support the score, though caution is warranted due to challenges in loan volumes and criticized loans.

Positive Factors

Leadership

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

Strategic Direction

The BUY thesis is based on the bank's plan to abstain from buyside M&A and drive better consistency and profitability.

Valuation

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

Negative Factors

Balance Sheet

The balance sheet is expected to continue shrinking, impacting the stock negatively as long as this trend persists.

Credit Risk

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

Net Interest Income

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

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 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: Positive
• Last Price: 30.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 30.03 is above the 20-day moving average (MA) of 29.46, above the 50-day MA of 29.10, and above the 200-day MA of 29.13, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 68.46 is Neutral, neither overbought nor oversold. The STOCH value of 78.01 is Neutral, 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	$3.32B	15.06	6.29%	3.45%	3.67%	-10.83%
WSFS	75 Outperform	$3.10B	12.11	10.32%	1.11%	0.30%	1.46%
WSBC	74 Outperform	$2.99B	18.71	4.25%	4.71%	30.52%	-21.64%
FIBK	73 Outperform	$3.16B	13.58	6.91%	6.22%	-2.11%	-8.95%
FHB	72 Outperform	$3.06B	12.69	9.40%	4.23%	-2.56%	12.05%
Sector *	68 Neutral	$17.49B	11.70	10.34%	3.85%	9.75%	0.63%
EBC	64 Neutral	$3.36B	24.06	-1.89%	3.02%	4.80%	-111.49%

First Interstate Bancsystem Corporate Events

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.

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.

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.

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.

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.