First Interstate's Q4 net income rises

Overview

• Community bank's Q4 net income rose significantly from prior quarter and year

• Company completed Arizona and Kansas branch sale, gaining $62.7 mln

• Company expanded stock repurchase program by $150 mln

Outlook

• Company plans to close four Nebraska branches in February 2026

• First Interstate expects Nebraska branch sale to close in early Q2 2026

• Company increases stock repurchase program by $150 mln, totaling $300 mln since August 2025

Result Drivers

• BRANCH SALE - Sale of Arizona and Kansas branches resulted in a $62.7 mln gain, boosting noninterest income

• CREDIT QUALITY IMPROVEMENT - Decrease in non-performing assets and criticized loans, reflecting improved credit quality

• NET INTEREST MARGIN - Slight improvement in net interest margin due to higher yields on investment securities and lower deposit costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Interstate Bancsystem Inc is $37.50, about 1.7% above its January 27 closing price of $36.86

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw8F3LB9a

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