• In recent trading, First Interstate BancSystem drew investor attention as regional banks gained favor after peers such as KeyCorp reported stronger-than-expected quarterly results and analysts signaled confidence in Huntington Bancshares. This sector-wide improvement in sentiment highlighted how closely First Interstate BancSystem’s market perception is tied to broader regional banking trends rather than company-specific headlines.
• Against this backdrop of improving peer results, we’ll explore how strengthened sector sentiment might influence First Interstate BancSystem’s investment narrative over the coming quarters.

Find companies with promising cash flow potential yet trading below their fair value.

What Is First Interstate BancSystem's Investment Narrative?

To own First Interstate BancSystem, you need to be comfortable with a fairly traditional regional bank story: steady net interest income, a high and recurring dividend, and earnings that analysts expect to grow meaningfully, even if revenue expansion looks modest and return on equity remains low. Recent sector optimism, sparked by stronger results at peers like KeyCorp and a more upbeat view on Huntington Bancshares, pushed First Interstate’s shares to a 52 week high and narrowed the discount to analyst fair value. That move improves the backdrop for the upcoming Q4 2025 earnings release but does not fundamentally change the near term catalysts, which still center on credit quality, margin resilience and capital returns through dividends and buybacks. At the same time, recent insider selling and the bank’s relatively rich earnings multiple keep valuation and governance firmly on the risk list. Yet beneath the improving sentiment, one particular risk stands out that investors should not overlook.

First Interstate BancSystem's shares have been on the rise but are still potentially undervalued by 16%. 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, reflecting very different expectations. Set against the recent sector driven price strength, this spread underlines how much views still hinge on future credit quality and the sustainability of First Interstate’s earnings growth.

Explore 10 other fair value estimates on First Interstate BancSystem - why the stock might be worth as much as 19% 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.

Seeking Other Investments?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• These 10 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.

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.