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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, Inc.'s recent performance was positively driven by its Q2 2025 earnings beat, with net income of $71.7 million, or $0.69 per diluted share, surpassing the Zacks Consensus Estimate of $0.57 per share. The company's net interest margin increased, benefiting from lower deposit costs and rising yields on maturing loans and investment securities. Additionally, the company has been expanding its presence through strategic acquisitions, including the sale of 12 branches to Enterprise Bank & Trust and 11 branches to Security First Bank. Institutional ownership stands at 88.7%.

1.c. Company Highlights

2. First Interstate BancSystem's Q3 Earnings: A Step in the Right Direction

First Interstate BancSystem reported a net income of $71.4 million or $0.69 per diluted share for the third quarter, beating analyst estimates of $0.59. Net interest income decreased $0.4 million compared to the prior quarter but increased $1.3 million compared to the third quarter of 2024, primarily due to a decrease in interest expense. The company's net interest margin is expected to improve sequentially into 2026 and 2027. Revenue growth is estimated to be 1.8% next year.

Publication Date: Nov -02

📋 Highlights
  • Capital Allocation & Share Repurchases:: The company authorized a $150 million share repurchase program, with CFO David Camera emphasizing capital deployment through buybacks as a priority over securities restructuring.
  • Branch Divestitures & Financial Impact:: Completion of Arizona/Kansas branch sales and a pending Nebraska sale (expected Q2 2026) will generate a $60 million pretax gain and reduce annual noninterest expenses by ~1%.
  • Net Income & Earnings Per Share:: Q3 net income reached $71.4 million ($0.69 per diluted share), with net interest income up $1.3 million year-over-year due to reduced interest expenses from lower borrowing rates.
  • Loan & Deposit Trends:: Loan balances declined due to strategic exits from non-relationship businesses and weak demand, while interest-bearing deposit costs dropped to 1.8% by September 2025.

Operational Highlights

The company has made significant progress in refocusing its capital investment, optimizing its balance sheet, and improving core profitability. The divestiture of branches in Arizona and Kansas was completed, and the sale of 11 branches in Nebraska is expected to close in the second quarter of 2026. The company's loan balances declined due to intentional refocusing of production and discontinuation of indirect lending originations. As CEO Jim Reuter noted, "production has been weaker than expected due to increased competition, muted demand for real estate lending, and expected production below replacement levels."

Capital Allocation and Shareholder Value

The company is focused on organic growth and relationship banking, with a strong emphasis on capital allocation and shareholder value creation. A $150 million buyback is currently underway, and the company will reassess additional repurchases after completing the buyback. The company's regulatory capital ratios continued to increase, and the CET1 target is in line with peer companies. With a dividend yield of 6.02%, the stock offers an attractive income stream.

Valuation

Using relevant valuation metrics for banks, the Price-to-Tangible Book Value (P/TBV) is not directly available, but the Price-to-Book Ratio (P/B Ratio) stands at 0.93. The Net Interest Margin (NIM) is not explicitly stated, but the company's net interest income is expected to improve sequentially. The Dividend Yield is 6.02%, making it an attractive option for income-seeking investors. The stock's valuation multiples suggest that it is reasonably priced, with a P/E Ratio of 13.14 and an EV/EBITDA of 11.6.

3. NewsRoom

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Is First Interstate Stock a Buy or Sell After One of the Board of Directors Dumps Shares Worth Nearly $1 Million?

Nov -28

Source: fool.com

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Sandisk Set to Join S&P 500; Upwork, First Interstate BancSystem, PTC Therapeutics to Join S&P SmallCap 600

Nov -24

Source: prnewswire.com

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HOLDCO ASSET MANAGEMENT RELEASES PRESENTATION TO FIRST INTERSTATE BANCSYSTEM, INC.

Nov -06

Source: prnewswire.com

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First Interstate Bank Cuts Stock Holdings in Alphabet Inc. $GOOGL

Oct -31

Source: defenseworld.net

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First Interstate Bank Has $5.31 Million Stake in Meta Platforms, Inc. $META

Oct -31

Source: defenseworld.net

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First Interstate Bank Lowers Stock Position in JPMorgan Chase & Co. $JPM

Oct -31

Source: defenseworld.net

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First Interstate BancSystem, Inc. (FIBK) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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State of New Jersey Common Pension Fund D Boosts Stock Position in First Interstate BancSystem, Inc. $FIBK

Oct -30

Source: defenseworld.net

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: 6.7/10

Value: 5.9

Growth: 4.2

Quality: 7.4

Yield: 10.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Valley National Bank

A-Score: 6.4/10

Value: 5.9

Growth: 4.6

Quality: 6.4

Yield: 8.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Cullen Frost Bankers

A-Score: 6.3/10

Value: 4.2

Growth: 6.9

Quality: 6.9

Yield: 6.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Associated Banc

A-Score: 6.0/10

Value: 5.1

Growth: 4.8

Quality: 4.3

Yield: 8.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Prosperity Bancshares

A-Score: 5.7/10

Value: 4.1

Growth: 4.0

Quality: 7.5

Yield: 6.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Western Alliance

A-Score: 5.5/10

Value: 8.1

Growth: 5.7

Quality: 7.0

Yield: 4.0

Momentum: 4.0

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

33.61$

Current Price

33.62$

Potential

-0.00%

Expected Cash-Flows