Earnings Jump and Buybacks Might Change the Case for Investing in First Interstate BancSystem (FIBK)

• First Interstate BancSystem recently reported third quarter 2025 results, highlighting a strong year-over-year increase in net income to US$71.4 million and lower net charge-offs, alongside confirmation of a US$0.47 dividend per share and completion of a 1,800,000 share repurchase program.
• Management also issued guidance for 2026, forecasting mid-single digit net interest income expansion, while ongoing shareholder activism signals sustained investor focus on the company’s direction and board oversight.
• We'll explore how improved asset quality and higher earnings shape First Interstate BancSystem's investment narrative going forward.

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First Interstate BancSystem Investment Narrative Recap

To be a shareholder of First Interstate BancSystem today is to buy into the belief that stable earnings, a strong deposit base, and healthy asset quality can support consistent dividend payouts and potential capital appreciation, despite industry-wide margin pressures. The company’s third quarter earnings beat and significant improvement in net charge-offs reinforce operational resilience; however, ongoing shareholder activism continues to be the primary short-term catalyst, while risks tied to regional loan concentration and criticized loan categories still loom. On balance, the latest quarterly results appear supportive but do not fundamentally shift the company’s risk/reward profile.

One announcement standing out is the sharp decline in net charge-offs to just US$2.3 million, or 0.06% of average loans, for the recent quarter. This improvement in credit quality helps to offset market concerns about deteriorating multifamily exposures and points towards greater earnings stability, which is crucial with ongoing debate about the sustainability of loan growth and revenue streams.

In contrast, investors should also be mindful of how persistent declines in loan balances remain a risk, particularly as the bank intentionally exits segments and faces slowdowns in construction lending...

Read the full narrative on First Interstate BancSystem (it's free!)

First Interstate BancSystem's outlook anticipates $1.1 billion in revenue and $686.4 million in earnings by 2028. This forecast is based on a 6.8% annual revenue growth rate and a $456.9 million increase in earnings from the current $229.5 million.

Uncover how First Interstate BancSystem's forecasts yield a $34.38 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Nine members of the Simply Wall St Community estimate fair values for First Interstate BancSystem between US$25 and US$45.48 per share. Amid this broad valuation spread, recent improvements in credit quality highlight ongoing debate about the bank’s long term earnings consistency and risk profile, so be sure to consider multiple viewpoints when assessing opportunity and risk.

Explore 9 other fair value estimates on First Interstate BancSystem - why the stock might be worth 21% less than the current price!

Build Your Own First Interstate BancSystem Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your First Interstate BancSystem research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free First Interstate BancSystem research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate First Interstate BancSystem's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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