First Interstate Bancsystem (FIBK)
NASDAQ:FIBK
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First Interstate Bancsystem
(NASDAQ:FIBK)
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Rating:68Neutral
Price Target:
$40.00
▲(17.54% Upside)
Action:DowngradedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
First Interstate Bancsystem (FIBK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.44B
Dividend Yield5.24%
Average Volume (3M)1.28M
Price to Earnings (P/E)11.7
Beta (1Y)0.98
Revenue Growth-5.43%
EPS Growth4.19%
CountryUS
Employees3,481
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.08
Shares Outstanding101,118,300
10 Day Avg. Volume1,274,483
30 Day Avg. Volume1,278,126
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)1.03
Price to Sales (P/S)3.35
P/FCF Ratio12.78
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue2.90
Enterprise Value/Gross Profit3.74
Enterprise Value/Ebitda9.02
Forecast
1Y Price Target
$36.40Price Target Upside6.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.68
Revenue Forecast (FY)$1.00B
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, savi...
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 an...
First Interstate Bancsystem Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The call highlighted tangible progress on capital return, regulatory capital improvement, balance sheet flexibility and sequential net interest margin expansion, along with meaningful credit quality improvements in the quarter. However, several operational headwinds and near-term pressures remain: loan balances and deposits declined due to strategic branch divestitures and intentional run-off, Q4 earnings were materially supported by a one-time gain on sale, there was a Q4 spike in net charge-offs driven by a single large credit, and loan production was lower than expected in 2025. Management provided constructive guidance for NIM expansion and controlled expenses but acknowledged near-term seasonality that will pressure Q1 NII and expects loans roughly flat to slightly lower in 2026 (excluding indirect run-off). Overall, positive structural actions and capital returns are balanced by execution and recurring-earnings headwinds and some one-time items.Positive Updates
Strong Q4 Net Income and EPS
Net income of $108.8M in Q4 2025, or $1.08 per diluted share, up from $71.4M or $0.69 in Q3 2025; increase driven largely by a gain on sale related to Arizona and Kansas divestiture.
Negative Updates
Loan Balances Declined Materially
Loans decreased $632.8M in Q4 2025 (including $72.5M moved to held for sale and $62.8M indirect amortization); year-over-year production was lower than expected and total loans down for 2025 due to intentional run-off and disposals.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Net Income and EPS
Net income of $108.8M in Q4 2025, or $1.08 per diluted share, up from $71.4M or $0.69 in Q3 2025; increase driven largely by a gain on sale related to Arizona and Kansas divestiture.
Read all positive updates
Company Guidance
For 2026 management guided to low single‑digit deposit growth with normal seasonality and total loans roughly flat to slightly lower (excluding an additional 1–2% decline from continued indirect portfolio runoff), with loans expected to decline in H1 and modestly grow in H2; Q1 reported net interest income is modeled about 3% below Q4 2025. They expect sequential net interest margin expansion from the Q4 adjusted FTE NIM of 3.34% toward “north of 3.50%” by year‑end (roughly +~5 bps per quarter), supported by reinvestment of lower‑yielding securities (new securities pricing roughly 5‑year +60–70 bps) and new loan production in the low‑to‑mid‑6% range; fee income is assumed to show modest year‑over‑year growth. Expense guidance is roughly flat to slightly lower versus FY2025 (implying about $630–$645M annually or ~ $159–$160M per quarter) but the plan assumes ~1% higher costs from medical insurance normalization plus reinvestment for relationship managers, branch openings/relocations and increased advertising; guidance reflects the sale/closure of 17 branches (11 sold, 6 closed), excludes the anticipated Nebraska gain, notes ND/MN deposits of ≈$30M, and the company raised share‑repurchase capacity to $300M with roughly $180M remaining.First Interstate Bancsystem Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
66
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 | 358.20M | 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 | 277.80M | 332.00M | 399.80M | 523.90M | 272.00M |
| Operating Cash Flow | 305.60M | 355.00M | 428.00M | 534.40M | 282.30M |
| Investing Cash Flow | 2.31B | 1.76B | 1.25B | -949.00M | -2.12B |
| Financing Cash Flow | -2.20B | -1.80B | -1.97B | -1.06B | 1.91B |
First Interstate Bancsystem Technical Analysis
Positive
34.03
Price Trends
35.02
Negative
34.76
Negative
32.48
Positive
Market Momentum
-0.20
Negative
51.32
Neutral
78.75
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 34.03 is above the 20-day moving average (MA) of 33.26, below the 50-day MA of 35.02, and above the 200-day MA of 32.48, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 51.32 is Neutral, neither overbought nor oversold. The STOCH value of 78.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FIBK.
First Interstate Bancsystem Risk Analysis
First Interstate Bancsystem disclosed 43 risk factors in its most recent earnings report. First Interstate Bancsystem reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Interstate Bancsystem Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.65B | 10.45 | 10.61% | 1.16% | -3.62% | 10.83% | |
70 Outperform | $3.47B | 8.17 | 5.67% | 4.35% | 41.49% | -5.53% | |
70 Outperform | $3.23B | 11.43 | 9.62% | 3.96% | -4.45% | 16.92% | |
68 Neutral | $3.44B | 11.75 | 8.83% | 5.24% | -5.43% | 4.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $3.89B | 17.62 | 6.21% | 3.05% | 11.05% | -10.78% | |
54 Neutral | $4.89B | 44.96 | 2.29% | 2.72% | -1.18% | -89.13% |
* Financial Sector Average
FIBK
First Interstate Bancsystem
34.03
10.73
46.07%
INDB
Independent Bank
79.62
27.14
51.71%
WSBC
WesBanco
36.06
10.17
39.28%
WSFS
Wsfs Financial
69.28
23.47
51.22%
FHB
First Hawaiian
26.27
5.43
26.04%
EBC
Eastern Bankshares
20.83
6.80
48.48%
First Interstate Bancsystem Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
First Interstate BancSystem Reports Strong Q4 Earnings Growth
Positive
Jan 28, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.