Since December 2025, First Interstate BancSystem has been in a holding pattern, posting a small return of 4.1% while floating around $37.32.

Is there a buying opportunity in First Interstate BancSystem, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free.

Why Do We Think First Interstate BancSystem Will Underperform?

We’re swiping left on First Interstate BancSystem for now. Here are three reasons we avoid FIBK, plus one stock we’d rather own.

1. Long-Term Revenue Growth Disappoints

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income.

Regrettably, First Interstate BancSystem’s revenue grew at a mediocre 8.8% compounded annual growth rate over the last five years. This fell short of our benchmark for the banking sector.

2. EPS Growth Has Stalled

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

First Interstate BancSystem’s flat EPS over the last five years was below its 8.8% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.

3. Projected TBVPS Growth Shows Limited Upside

A bank’s tangible book value per share (TBVPS) increases when it generates higher net interest margins and keeps credit losses low, allowing it to compound shareholder value over time.

Over the next 12 months, Consensus estimates call for First Interstate BancSystem’s TBVPS to remain flat at roughly $22.55, a disappointing projection.

Final Judgment

First Interstate BancSystem doesn’t pass our quality test. That said, the stock currently trades at 1.1× forward P/B (or $37.32 per share). This multiple tells us a lot of good news is priced in - we think other companies feature superior fundamentals at the moment. Let us point you toward one of Charlie Munger’s all-time favorite businesses.

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