FIBK Stock Forecast & Price Target

First Interstate BancSys is benefiting from a credit culture reset under new leadership since late 2024, with criticized assets peaking, NCOs declining to a low 6bp, and criticized loans falling $18.6M in 1Q26 for a third straight quarter of improvement. Its strategic pivot away from non-core lending and branch overlap, plus a commitment to relationship-driven organic growth and no M&A, has improved stability while allowing capital to be returned through roughly 6M repurchased shares for about $200M since 3Q25. With 1Q26 EPS of $0.61 in line with estimates, NIM above forecast, and management still active on buybacks, the company appears fundamentally stronger even as shares now reflect much of the turnaround.

First Interstate BancSys is viewed negatively because its prior M&A-heavy strategy left the bank with weak organic loan growth, rising NPAs and criticized assets from 2020-2024, and higher NCOs while peers improved. Profitability and balance-sheet efficiency also lagged, with TBV growth and ROA trailing peers, and current performance still looks soft as loans fell 12.5% LQA, deposits declined 3.7% LQA, and core noninterest income dropped 6.4% LQ. Although NII guidance of $825-$845M and NIM of 3.41% provide some stability, projected 2027 growth and credit metrics remain slightly below mid-cap peers, reinforcing a cautious outlook.