First Interstate's Q4 net income rises

First Interstate BancSystem

28/01/2026 21:20

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 EPS
$1.08
Q4 Net Income
$108.80 mln
Q4 Net Interest Income
$206.40 mln
Q4 Credit Loss Provision
$7.10 mln
Q4 Pretax Profit
$139.20 mln


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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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)