Overview

• U.S. community bank's Q1 net income rose yr/yr but fell from prior quarter

• Net interest income and noninterest income both declined from a year earlier

• Company repurchased 2.39 mln shares for $84 mln, boosting buyback authorization

Outlook

• Company cites strong commercial pipeline and ongoing fixed asset repricing entering Q2 2026

Result Drivers

• NET INTEREST INCOME DECLINE - Co said lower net interest income was driven by reduced loan yields and balances, fewer accrual days, and the impact of branch sales

• NONINTEREST INCOME DROP - Noninterest income fell sharply from the prior quarter, mainly due to the absence of a large gain from branch sales recorded in Q4 2025

• PAYMENT SERVICES REVENUE - Co attributed lower payment services revenue to reduced consumer credit card interchange after outsourcing the business in Q2 2025

Company press release: ID:nBw7BLTpba

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and 2 "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 $37.00, about 3.7% above its April 28 closing price of $35.68

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

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