FIBK Stock Forecast & Price Target

First Interstate BancSys is viewed favorably because new leadership has shifted the company away from an acquisition-heavy strategy that produced only 2.7% average annual organic loan growth from 2015-2024, rising NPAs and criticized assets from 2020-2024, and lagging TBV growth and ROA. Since late 2024, the company has reset credit culture, exited indirect lending, sold branches in AZ/KS and NE, and repurchased roughly 6M shares for about $200M since 3Q25, signaling stronger capital discipline and a more shareholder-friendly capital return profile. Its 1Q26 results reinforced the thesis, with EPS of $0.61 in line with estimates, NIM expansion, criticized loans down $18.6M for a third straight quarter, and NCOs improving to 6bp, even as expectations and the stock have already risen sharply.

First Interstate BancSys is facing a mixed but ultimately cautious fundamental setup, as the CEO transition has improved the operational outlook while also raising expectations that may be difficult to meet if growth stays weak. Loans fell 12.5% LQA and deposits declined 3.7% LQA, with runoff concentrated in construction, CRE, and agriculture, while core noninterest income slipped 6.4% LQ to $41.1M, below forecast, signaling softer franchise momentum despite a strong pipeline. Lower expenses of $157.6M beat expectations, but management still expects only a return to growth in 2H26 and cites severe downside risks from economic deterioration and credit quality pressure in the Western US and Inland Northwest.