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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on FIBK

First Interstate BancSystem's recent performance was positively driven by its strong Q4 2025 earnings report, which surpassed estimates with quarterly earnings of $1.08 per share, a significant beat from the Zacks Consensus Estimate of $0.64 per share. Net income soared to $108.8 million, or $1.08 per diluted share, up from $52.1 million, or $0.50 per diluted share, in Q4 2024. The company's solid financial results were highlighted in its Q4 2025 earnings call transcript. Institutional investors' holdings, including Cypress Capital Management's $2.17 million stake, also underscore confidence in the company.

1.c. Company Highlights

2. First Interstate BancSystem's Q4 Earnings Shine with Strong Profitability Metrics

First Interstate BancSystem Inc. reported a net income of $108.8 million or $1.08 per diluted share in the fourth quarter, significantly surpassing estimates of $0.64 per share. Net interest income remained relatively stable, decreasing by $0.4 million compared to the prior quarter, primarily due to a reduction in earning assets and a decrease in the yield on earning assets. The company's efforts to optimize its balance sheet and improve core profitability are evident in its financial results.

Publication Date: Feb -08

📋 Highlights
  • Share Repurchases:: The company repurchased 3.7 million shares ($118M) in 2025 and authorized an additional $150M, totaling $300M in buybacks to return capital.
  • Net Income Growth:: Q4 net income rose to $108.8M ($1.08/share) from $71.4M ($0.69/share) in Q3 2024, reflecting improved profitability.
  • Balance Sheet Restructuring:: Branch divestitures in Arizona, Kansas, and Nebraska, plus outsourcing credit cards, streamlined operations and focused capital.
  • Deposit & Loan Guidance:: 2026 targets include low single-digit deposit growth and flat to slightly lower loans, excluding a 1-2% decline from indirect portfolio runoff.
  • Margin Expansion Outlook:: NIM expected to rise 350 basis points by 2026, driven by improving loan/deposit spreads and sequential quarterly margin improvements.

Operational Highlights and Guidance

The company made significant strides in 2025, including branch divestitures in Arizona, Kansas, and Nebraska, and the outsourcing of the consumer credit card product. For 2026, the company expects low single-digit deposit growth, with loans expected to be roughly flat to slightly lower, excluding the continued run-off of the indirect portfolio. The company also anticipates sequential improvement in its net interest margin due to the expectation for improving spread between loans and deposits.

Valuation and Dividend Insights

With a Price-to-Tangible Book Value (P/TBV) that can be approximated using the given 'P/B Ratio' of 1.14, and considering the tangible book value per share increased to $22.40, the stock appears reasonably valued. The Dividend Yield stands at 4.84%, indicating an attractive return for income-seeking investors. Analysts estimate next year's revenue growth at 5.2%, suggesting a positive outlook for the company's top line.

Credit Quality and Capital Management

The company's disciplined credit management and proactive approach to managing criticized loans are positives. With $3 billion in loan maturities and resets over the next two years, the company sees opportunities to expand or retain relationships. The expectation is for credit improvement, although the allowance coverage is situationally dependent. Capital management remains an ongoing focus to enhance shareholder value.

Outlook and Conclusion

Given the guidance and operational highlights, the company's trajectory appears positive, driven by its strategic initiatives and expected improvements in net interest margin. The actual EPS of $1.08 beating estimates of $0.64 is a significant positive. With a ROE of 8.83%, the company demonstrates a reasonable return on equity, although the ROIC is negative, indicating room for improvement in capital allocation efficiency.

3. NewsRoom

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First Interstate BancSystem (FIBK) Is Up 9.44% in One Week: What You Should Know

Feb -09

Source: zacks.com

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First Interstate BancSystem, Inc. (FIBK) Q4 2025 Earnings Call Transcript

Jan -29

Source: seekingalpha.com

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Compared to Estimates, First Interstate BancSystem (FIBK) Q4 Earnings: A Look at Key Metrics

Jan -29

Source: zacks.com

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First Interstate BancSystem (FIBK) Q4 Earnings and Revenues Surpass Estimates

Jan -28

Source: zacks.com

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First Interstate BancSystem, Inc. Reports Fourth Quarter Earnings

Jan -28

Source: businesswire.com

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Cypress Capital Management LLC WY Has $2.17 Million Stock Holdings in First Interstate BancSystem, Inc. $FIBK

Jan -28

Source: defenseworld.net

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First Interstate Bank Trims Stock Holdings in First Interstate BancSystem, Inc. $FIBK

Jan -21

Source: defenseworld.net

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First Interstate BancSystem, Inc. Announces Fourth Quarter Earnings Release and Conference Call

Jan -06

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Community Banking

Expected Growth: 6.0%

Strong community presence, diversified loan portfolio, and strategic branch expansion drive 6.0% growth in Community Banking at First Interstate BancSystem, Inc. Additionally, investments in digital banking and customer relationship management contribute to increased deposits and loan growth, while a focus on small business and agricultural lending further supports segment expansion.

7. Detailed Products

Personal Banking

First Interstate BancSystem, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Business Banking

The company provides business banking services, including commercial loans, lines of credit, and cash management solutions.

Wealth Management

First Interstate BancSystem, Inc. offers wealth management services, including investment management, trust services, and financial planning.

Mortgage Lending

The company provides mortgage lending services, including residential and commercial mortgage loans.

Treasury Management

First Interstate BancSystem, Inc. offers treasury management services, including cash management, wire transfers, and account reconciliation.

Online Banking

The company provides online banking services, including online bill pay, fund transfers, and account management.

8. First Interstate BancSystem, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for First Interstate BancSystem, Inc. is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers for First Interstate BancSystem, Inc. is low due to the lack of concentration of buyers and the availability of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for First Interstate BancSystem, Inc. is medium due to the presence of multiple suppliers of technology and services.

Threat Of New Entrants

The threat of new entrants for First Interstate BancSystem, Inc. is low due to the high barriers to entry in the banking industry, including regulatory requirements and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for First Interstate BancSystem, Inc. is high due to the presence of multiple competitors in the banking industry, including large national banks and regional banks.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.20%
Debt Cost 8.23%
Equity Weight 46.80%
Equity Cost 8.23%
WACC 8.23%
Leverage 113.70%

11. Quality Control: First Interstate BancSystem, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
First Interstate BancSystem

A-Score: 6.2/10

Value: 5.9

Growth: 4.2

Quality: 7.1

Yield: 9.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Valley National Bank

A-Score: 6.1/10

Value: 6.1

Growth: 4.6

Quality: 5.8

Yield: 8.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Associated Banc

A-Score: 5.7/10

Value: 5.3

Growth: 4.8

Quality: 4.1

Yield: 8.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Prosperity Bancshares

A-Score: 5.7/10

Value: 5.6

Growth: 4.0

Quality: 6.9

Yield: 6.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Cullen Frost Bankers

A-Score: 5.7/10

Value: 3.9

Growth: 6.9

Quality: 5.6

Yield: 6.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Western Alliance

A-Score: 5.3/10

Value: 7.5

Growth: 5.7

Quality: 7.4

Yield: 4.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.73$

Current Price

34.73$

Potential

-0.00%

Expected Cash-Flows