• First Interstate BancSystem, Inc. recently reported fourth-quarter and full-year 2025 results showing higher net income and earnings per share than a year earlier, while also declaring a US$0.47 per-share dividend payable on February 20, 2026 to shareholders of record on February 10, 2026.
• The company coupled these results with an expanded US$300 million share repurchase authorization, following the completion of US$117.60 million in prior buybacks, signaling a continued focus on returning capital alongside managing credit costs reflected in recent net charge-off trends.
• Next, we will consider how the stronger earnings performance and larger share repurchase authorization influence First Interstate BancSystem's broader investment narrative.

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What Is First Interstate BancSystem's Investment Narrative?

To own First Interstate BancSystem, you have to be comfortable owning a regional bank where the story is about steady profitability, disciplined capital returns and contained credit risk rather than rapid growth. The latest quarter fits that script: stronger earnings, a reaffirmed US$0.47 dividend and a larger US$300 million buyback suggest management is leaning into shareholder returns while the share price has already climbed over the past year. In the near term, that capital return profile is likely to remain a key catalyst, especially if earnings stay solid. At the same time, the pickup in recent net charge-offs is a useful reminder that credit trends can still surprise, even if current levels are lower than late 2024. Overall, the new announcements reinforce existing themes more than they redefine them.

However, rising charge-offs could challenge the earnings story investors are getting comfortable with. First Interstate BancSystem's shares have been on the rise but are still potentially undervalued by 19%. Find out what it's worth.

Exploring Other Perspectives

Ten fair value estimates from the Simply Wall St Community span roughly US$27 to US$45 per share, underlining how differently people see First Interstate’s prospects. Set that against recent earnings strength and higher buyback authorization, and it becomes clear why understanding both credit risk and capital returns matters before you decide where you stand.

Explore 10 other fair value estimates on First Interstate BancSystem - why the stock might be worth as much as 24% more than the current price!

Build Your Own First Interstate BancSystem Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your First Interstate BancSystem research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free First Interstate BancSystem research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate First Interstate BancSystem's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.