FIBK

Image source: The Motley Fool. Friday, Oct. 23, 2026 - Investor Relations - Nancy Vermeulen - President and Chief Executive Officer - James A. Reuter - Executive Vice President and Chief Financial Officer - David P. Della Camera - Executive Vice President and Chief Operations Officer - Jeff Lee Operator: I will now hand the conference over to Nancy Vermeulen. Please go ahead. Nancy Vermeulen: Thank you, Megan. Good morning, and thank you for joining us for our third quarter earnings conference call. As we begin, please note that the information provided during this call will contain forward-looking statements. Actual results or outcomes might differ materially from those expressed by those statements. I'd like to direct all our listeners to read the cautionary note regarding forward-looking statements contained in our most recent quarterly report on Form 10-K filed with the SEC and in our earnings release, as well as the risk factors identified in the quarterly report and our more recent periodic reports filed with the SEC. Relevant factors that could cause actual results to differ materially from any forward-looking statements are included in the earnings release and in our SEC filings, and the company does not undertake to update any of the forward-looking statements made today. A copy of our earnings release, which contains non-GAAP financial measures, is available on our website at fibk.com. Information regarding our use of the non-GAAP financial measures may be found in the body of the earnings release, and a reconciliation to their most comparable GAAP financial measures is included at the end of the earnings release for your reference. Again, this quarter, along with our earnings release, we published an updated investor presentation that has additional disclosures that we believe will be helpful. The presentation can be accessed on our investor relations website, and if you have not downloaded a copy yet, we encourage you to do so. Please also note that as we discuss our financials today, unless otherwise noted, all of the prior period comparisons will be with the second quarter of 2026. Joining us from management this morning are Jim Reuter, our Chief Executive Officer, David Della Camera, our Chief Financial Officer, and other members of our management team. Now, I'll turn the call over to Jim Reuter. Jim? Jim Reuter: Thank you, Nancy, and thank you for joining us on our earnings call today. In the third quarter of 2026, we continued to execute against our multi-year strategic plan, further improving the long-term earnings power of the franchise. Net interest margin expanded for the 10th consecutive quarter and non-interest-bearing deposits continued to increase, reflecting our focus on relationship growth. We maintained our disciplined approach to long-term value creation, investing in the markets where we see the greatest opportunity to deepen customer relationships and grow core deposits while enhancing shareholder returns through additional share repurchases. The execution of our multi-year strategy has required deliberate changes to both the composition of the balance sheet and our geographic footprint. We have exited certain non-strategic markets, initiated a long-term branch optimization program that includes both targeted expansion and consolidation, and refocused lending activities to customers that align with our relationship banking model. Our primary objective is to protect and strengthen the quality of the deposit franchise and add new customers. As we expected, new client acquisition remained strong in the Rocky Mountain region. New production continued to be concentrated among relationship-based clients represented by operating deposits and associated services. Going forward, our capital, talent, and branch investments will increasingly follow markets where we have an existing franchise advantage or an attractive opportunity for relationship growth. We believe the current expense base supports a production level that would stabilize earning asset mix when producing at capacity. While we expect our new teams to follow a typical ramp-up period, we believe the banking organization now has the capacity and market coverage required to support growth. This improvement in our operating model strengthens one of our key differentiators, combining the relationship focus, local decision-making, and high-touch service of a profitable community bank with the sophisticated treasury, commercial banking, and wealth management solutions of a larger institution. We have seen meaningful improvement in criticized loan levels over the past 12 months, which reflects our long-term commitment to disciplined credit decision-making. Credit was stable in the third quarter, with little change in criticized loans and a modest reduction in non-performing assets. Effective risk management continues to be a priority for us as strong credit discipline, combined with a high-quality customer deposit foundation, will support performance in all economic cycles. We believe our low-cost deposit base, which is granular across a large number of customers and geographies, provides a competitive advantage over the long term. In the third quarter, we also continued to optimize our capital structure through prudent execution of our share repurchase program. We repurchased approximately 2 million shares during the quarter, bringing total repurchases to approximately 10 million shares since the program began in late August 2025. Together with our dividend, repurchases are an important component of our total shareholder return. Through ongoing fixed asset repricing, capital deployment, operating model optimization, and continued focus on relationship banking, we are building a more efficient organization. We remain confident in our ability to continue to deliver improved earnings over time. With that, I will hand the call over to David. David? David Della Camera: Thanks, Jim. I'll start with our results for the quarter. The company reported net income of $62.2 million or $0.65 per diluted share in the third quarter, compared to $83.9 million or $0.87 per diluted share in the second quarter. Net interest income increased by $4 million compared to the prior quarter, or 2%, to $206.2 million. Yield on average loans increased 5 basis points to 5.67%, and total funding costs decreased 4 basis points compared to the second quarter. Deposit costs benefited from the exit of a large, high-cost, fully collateralized customer where our long-term return objectives were not being met. Excluding this balance, deposits increased during the quarter. This was a unique customer from both a size and pricing perspective. That exit contributed an approximately 3 basis point improvement to our net interest margin in the quarter and did not have a material impact on net interest income. Our fully taxable equivalent net interest margin was 3.55% for the third quarter, compared to 3.48% during the second quarter and 3.36% during the third quarter of 2025. As Jim mentioned, this marks our 10th consecutive quarter of net interest margin expansion, and fixed asset repricing should remain a tailwind to earning asset yields and underlying margin improvement into 2027. Over the past few years, we have used cash flows from the investment portfolio to eliminate wholesale borrowings. Since we began reinvesting in 2025, we have targeted shorter duration, reducing the balance sheet sensitivity to changes in interest rates. Based on our current interest rate risk modeling, the balance sheet is broadly neutral from a net interest income perspective in both the near term and over the next 12 months. While continued asset repricing and reinvestment at current market yields provide sequential support to earning asset yields. Non-interest income was $43.3 million, a decrease of $18.4 million from the prior quarter. This decrease primarily reflected the $19.5 million gain recognized in the second quarter from the Nebraska branch transaction. Non-interest expense was $157.1 million for the third quarter, a decrease of $1.8 million from the prior quarter. Moving to the balance sheet. Loans decreased by $296 million in the third quarter. A number of payoffs we anticipated in the third quarter shifted into the early fourth quarter. As we look to the loan decline in the quarter, this was influenced by a $47.7 million decline in indirect lending loans, a $64.9 million decline in the retained out-of-market portfolio, and a $36.8 million decline in the residential portfolio. While total deposits decreased $52.8 million to $21.4 billion in the quarter, when adjusted for the exit of the one large collateralized deposit, deposits increased QoQ. Our deposit mix further improved in the quarter as non-interest-bearing balances extended the increase we experienced in the prior quarter. The ratio of loans held for investment to deposits was 65.4% at the end of the quarter, compared to 66.6% at the end of the prior quarter and 70.1% at the end of the third quarter of last year. Turning to credit. Net charge-offs increased by $0.2 million in the third quarter to $9.9 million, or 28 basis points of average loans. The company recorded a $10.5 million provision for credit losses in the third quarter, driven primarily by the charge-offs, a 2 basis point increase in funded loan ACL to 1.30%, and higher unfunded allowance due mostly to an increase in unfunded construction commitments. Criticized loans were stable in the quarter, with an increase of $2.1 million or 0.2% from the prior quarter and declined 19% from a year ago. Non-performing assets declined 6% during the quarter. We repurchased approximately 2 million shares in the third quarter, totaling approximately $76 million, and repurchases since the initiation of the program in August 2025 totaled $347 million. Share repurchases remain a key capital allocation tool to drive shareholder value. The investment portfolio unrealized loss position increased with interest rates during the quarter, while expected principal cash flows remained relatively stable with limited extension. Our strategy diversifies risk through shorter maturities, floating rate products, and lower capital intensity instruments. Together with natural back book runoff, this improves our ability to manage interest rate exposure. While meaningful, the recent move in interest rates has not changed our near-term strategic capital deployment plans at this time, and all else being equal, should support asset repricing and medium-term earnings. Finally, we declared a dividend of $0.47 per common share, which equates to a 5% annualized yield based on the average closing price of the company's common stock during the third quarter. Our Common Equity Tier 1 capital ratio ended the third quarter at 14.36%, a decrease of 18 basis points from the prior quarter. Our leverage ratio is 9.49% at the end of the third quarter, compared to 9.59% at the end of the prior quarter. Our capital levels provide us with the flexibility to enhance shareholder returns while supporting long-term accretive growth. Moving to our guidance. In line with the prior quarter, our balance sheet expectations continue to include more meaningful payoffs within our commercial loan portfolio in the fourth quarter and further success in exiting some non-relationship and out-of-market credits. On the deposit side, our guidance continues to incorporate the positive trends within customer acquisition. Our net interest income guidance at the midpoint assumes expansion in NII into the fourth quarter as we continue to benefit from meaningful repricing, a stabilization of earning assets, and relatively strong non-interest-bearing balance performance. The September rate increase benefited asset yields late in the third quarter, while the related deposit repricing will be more fully reflected in the fourth quarter. As a result of that, as well as the impact from the larger high-cost deposit exiting in the third quarter, we expect a smaller sequential margin benefit in the fourth quarter than we realized in the third quarter. Our expense forecast includes continued investment in areas that support our customer acquisition efforts, and as we referenced last quarter, we will be opening two branches in Colorado in the first half of 2027 and are consolidating three additional locations in the fourth quarter of this year. We will maintain our expense discipline and have been pairing noted investments with efficiencies. Over the prior 12 months, net interest margin has improved 19 basis points and average deposits per average diluted share has improved approximately 3%. Average deposits per branch improved 6%, and net interest income per share improved 8% compared to the third quarter of 2025. With that, I'll hand the call back to Jim. Jim Reuter: Thank you, David. Our multi-year strategy continues to gain traction across the franchise and enhance our long-term earnings power. Our capital deployment remains disciplined, balancing investments in high opportunity markets to support future growth with share repurchases. We believe that the continued growth in non-interest-bearing deposits that we saw in the third quarter provides encouraging evidence that our relationship banking efforts are resonating with clients. Our go-to-market strategy has increased scalability, improved market alignment, and expanded banker capacity to fulfill our primary objectives of enhancing our best-in-class deposit franchise. We are well-positioned to execute on our strategy across a range of interest rate environments. We look forward to future earnings calls as disciplined relationship growth and earning asset yield expansion increasingly contribute to results. Now I would like to open the call for questions. Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Andrew Terrell with Stephens. Your line is open. Please go ahead. Andrew Terrell: Hey, good morning. Jim Reuter: Good morning, Andrew. Andrew Terrell: Hey, I wanted to start just on deposits. I appreciate the color around some of the moving pieces here in the third quarter. Looks like the fourth quarter guide or the full year guide kind of implies you step up from here. I think if I recall, there's usually some seasonal headwinds in the fourth quarter. Can you just talk through what you're seeing, kind of boots on the ground from a deposit standpoint or deposit growth standpoint here in the fourth quarter? And what kind of gives you confidence about deposits maybe inching up? David Della Camera: Yeah, sure, Andrew. I think as you look to kind of the midpoint of that guide in the fourth quarter, that's generally implying about flat YoY when you back out some of those branch sales and that large deposit. As we look kind of to the underlying core, we're seeing that strength in non-interest bearing. Our seasonality tends to be strong early in the fourth quarter, a little bit weaker late. So we think kind of putting those together, it's the right range for us to land in. Andrew Terrell: Got it. Okay. David, I think you called out towards the end of your remarks, just the NII per share growth over the past 12 months. But when we looked at it just straight NII dollars are down versus 3Q 2025. When you look over the next 12 months, can you get NII growth without balance sheet growth just as a function of what you see in terms of margin expansion? Or do you really need to get back to balance sheet growth in order to drive actual dollar NII growth? David Della Camera: I think if you look back over the past year, there's a few different things, the two major being the branch transactions, right? We had the branch transaction in Q4 of 2025, and then the second one in Q2 of 2026. Those together took about $1 billion out of deposits. If you kind of adjust the NII for that, I think we're already at a point of expanding NII. QoQ, given the NII expansion there, and then our view that we think the deposit profile is stabilized, we view it as we're into the NII expansion part of the story. Operator: Your next question comes from the line of Matthew Clark with Piper Sandler. Your line is open. Please go ahead. Matthew Clark: Hey, good morning. Thanks for the questions. Just on the asset repricing story, the slide that you have in your deck is very helpful. Can you give us a sense for the pickup in spreads we should assume given where rates are today? David Della Camera: Yeah, sure. Investment portfolio side, I think about five year plus, we'll call it the 40-50 basis point range is right. We have a combination of, again, variable and belly of the curve type of instruments. That's an approximate range on that front. On the lending side, would point to third quarter, excuse me, new loan yields kind of in that mid 6% range. There's of course been a lot of curve volatility, but that kind of can give you a broad understanding of where spreads are. Matthew Clark: Got it. On deposit costs, if we could get the spot rate at the end of September, given that large balance that left, and then your deposit beta assumption on the way up here. I think you did 27% on the way down. David Della Camera: Sure. On the cost of deposits, interest-bearing deposit costs for the full month of September was 151 versus 149 in the quarter. As we think about the forward expectation, I would view it as generally aligned with the disclosure we have in our Q and our NII modeling. I think that's the right way to think about it. Operator: Your next question comes from the line of Jeff Rulis with D.A. Davidson. Your line is open. Please go ahead. Jeff Rulis: Thanks. Good morning. I wanted to check in maybe on the buyback appetite. If we think about 10 million shares roughly in the last year, want to look forward to 2027 and maybe the dynamics change as you maybe kind of turn to growth at some point, a resumption of. Just want to kind of check in with that appetite level and understanding that could alter over the course of the year, but just initial thoughts on roughly half that level or something matching it. Any initial thoughts? Thanks. David Della Camera: Sure, Jeff. I think a couple things. I think near term, we have what I would view as a holistic approach to capital planning. Given the different factors, including visibility into the investment portfolio, cash flows, improving profitability, et cetera, we continue to be comfortable deploying capital. I think we continue to be in that active part of the capital deployment plan. I think as we go forward, our levels continue to support meaningful deployment. Balance sheet growth is always going to be the first and most accretive option for capital allocation. As we see that low-cost core deposit and lending growth, that would at some point impact capital deployment. But in the near term, we continue to be in an excess capital position, so we intend to continue deploying capital. Jeff Rulis: David, just to quantify that, 2 million shares a quarter for the next couple quarters is sort of the view, and then thereafter, maybe lessening as growth comes on. Is that oversimplifying? David Della Camera: I think each quarter will depend on the facts and circumstances. We don't have a specific quarterly target. It'll depend on market factors, what we're seeing for balance sheet growth, et cetera. But I think I would just point you to we continue to be and intend to be active, but facts and circumstances will develop over time. Operator: Your next question comes from the line of Andrew Liesch with StoneX Financial. Your line is open. Please go ahead. Andrew, can you check if your mic is muted, please? Andrew Liesch: Hi, can you hear me now? Operator: Yes, we can. Thank you. Andrew Liesch: Oh, sorry about that. My question was really on the. It sounds like there were some payoffs expected in the loan book in the third quarter that were pushed into the fourth. Can you maybe quantify that amount so we know where we're starting off with here in the fourth quarter for loan balances? David Della Camera: Yeah, Andrew, I think I would just point you to kind of if you look to where our guidance is for year-end, that's informed by some of our view of payoffs. And we've seen some of those early October, and so those have come through as expected. I think if you look at where those are coming from, we've talked about that out-of-market portfolio that continues to be a main driver and something we're actively working through and having success there. And then continue to see that indirect amortization as well as other activity. Not a specific figure there, but I think the midpoint of the loan guide is a reasonable point, and that's what we think is our best estimate. Andrew Liesch: Got it. Then the commentary on earning assets stabilizing, is that really a comment on deposit growth and where deposit balances are? I guess how does deposit growth look here going into the fourth quarter and into next year? Should we start to see earning assets rise? David Della Camera: Yes. So earning assets from here is a function of deposit growth. Mix, of course, being a separate but important conversation. I think from an underlying deposit perspective, we've seen our second consecutive quarter of non-interest-bearing expansion, both periodically and on a YoY basis when adjusted for the sold deposits. We're very pleased with that. It's an important part of our strategy, and if you look to how we're executing out in the market, it's a full relationship approach. That's where we think that's very important. So yes, you're right, it is a function of deposit growth. Then I think too early to provide a 2027 guide, but our focus continues to be on enhancing and growing that deposit franchise. Our intent is to grow earning assets. Operator: Your next question comes from the line of Kelly Motta with KBW. Your line is open. Please go ahead. Kelly Motta: Hey, good morning. Thanks for the question. Maybe sticking on the topic of deposits. The guide was reduced slightly, and I know maintaining deposit balances and relationships is really key for the longer-term outlook for the franchise. Just wondering, looks like it was mostly on the rate side, but if you could speak to that and kind of the drivers of the reduction in the deposit guide for the year. Thanks. David Della Camera: Yeah, I think just a couple comments. One, I would say just kind of tweaking and zooming in as we get closer to the end of the year. Two, we talked about that large deposit exiting. So our actual expectation and view of what we will call the underlying core deposits hasn't changed. We are continuing to see strength there. And again, a couple quarters in a row of non-interest-bearing growth. Jim Reuter: And Kelly, one thing I would add too is- Kelly Motta: Yeah Jim Reuter: -we have seen an improvement in the growth in number of clients as well, which is I think a direct result of some branding efforts and also frankly our bankers doing a great job of expanding relationships. And as you know, growth in number of clients begets growth in deposits in the long term and generates new fee income opportunities. So we are happy with what we are seeing at the core of the bank. Kelly Motta: Yeah. Totally understood. I think switching to credit quality, criticized remain elevated, although, overall, we haven't seen much by way of increased credit costs and that charge-offs have been within guide. Just wondering if you are starting how you are thinking about the overall outlook for the health of the portfolio in the higher rate environment, if there is anything at the margins where you are seeing incremental stress? And then also wondering, you guys have been so proactive on the credit front, if that's been overall incrementally probably helpful here as we go into this rate cycle. Thanks. Jim Reuter: Yeah. Thanks for the question, Kelly. You are right. We saw less improvement in credit quality when compared to the previous quarter. However, I think I mentioned it in my opening comments, we are down in criticized loans 18% YoY. As I have said on previous calls, it is a dynamic part of the bank, so it will not move in a straight linear path quarter-to-quarter, but directionally, over the long term, we anticipate continued improvement in that area. We remain focused on that primary source of repayment. That focuses on whether the property and/or business is performing as expected. As to the higher rates, that is a good question. Just to offer a few thoughts on that front. There is no doubt higher rates can impact existing loans on the books. As to the criticized loans, these loans are consistently reviewed by our bankers and credit teams discussed. So confident we have a good handle on the impacts of higher rates across all economic risk factors. In addition, we stress upcoming maturities for higher rates. That becomes part of the renewal conversation with borrowers as we approach the maturity date. You said it. I am a big believer in proactive credit risk management, and I think you have seen that over the past two years because that is what sets you up to perform well in all economic cycles. Kelly Motta: Great. Thank you so much for the color. I will step back. Operator: Your next question comes from the line of Tim Coffey with Brean Capital. Your line is open. Please go ahead. Tim Coffey: Great. Thank you. David, can we follow-up on the topic on the mix of earning assets? Because as we see the last several quarters, the percentage of loans earning assets has come down, and now you've built up a securities portfolio that's putting off regular cash. Is it possible we could start to see the mix of earning assets start to turn towards more loans relative to the sources of liquidity? David Della Camera: Hi, Tim. I think near term, that's not our expectation in the fourth quarter. Tim Coffey: Right David Della Camera: Our loans decline, deposits flat to higher in the fourth quarter. I think into 2027, it'll depend on pace of lending versus deposit growth. Of course, we're not going to provide a forecast today or a guide today on 2027. We're seeing good underlying activity in lending. I think, near term, we would expect continued pressure on the mix. Long term, our intent is to stabilize or improve that. Tim Coffey: Okay. A question about the chart on page six, the average deposits per branch. In the current rate environment, is $79 million the right number per branch, given that the break-even point for a branch is probably higher since interest rates are higher? Jim Reuter: Yeah. The break-even rate per branch depends on the cost of the branch, and if you look at our footprint, we would have some pretty low-cost branches in the mix. I think the median peer is about $150 million. And we've always said, given our footprint of a higher mix of some rural and mid-markets, our average branch size will not look like that of the peers. But like I said, the underlying expense structure is also different. But the branch optimization efforts you've seen us deploy here, whether it's closing and consolidating, that's helped improve that about 10% over the last 18 months. And our goal would be to improve that number over time. Tim Coffey: All right. Great. Thanks. Thanks, gentlemen. Operator: Your next question comes from the line of Samuel Varga with UBS. Your line is open. Please go ahead. Samuel Varga: Hey, good morning. Just wanted to go back to the comments you just made on the earning asset mix and how it's shifting towards securities in 4Q. I guess in that sort of backdrop, and the implications on margin, what is the true incentive for pushing deposit growth? David Della Camera: I think deposit growth is always going to be our number one priority. That is what creates near and long-term franchise value. I think across all environments, we will look to drive customer acquisition and deposit growth. Then the mix, again, fourth quarter is just our view that we see some near-term payoffs, especially in that out-of-market and other portfolios. That we think drives reported lending balances lower in the fourth. Jim Reuter: Yeah, I would just add that we are not running rate promotions to grow deposits. That is why we called out its two consecutive quarters of growth in non-interest-bearing deposits. That is the granular low-cost funding that I think is the power of the franchise, and we are going to keep building on that. Samuel Varga: Jim, thank you for that. Just a quick one on unfunded commitments. Could you give us an update for how those trended in 3Q and what the pipelines look like? David Della Camera: Sure. We saw an increase in the third quarter in that construction line, and we noted that as a driver of the increase in unfunded provisions. We were pleased with that. Those were a variety of well-priced, well-structured projects. It is an example of some of that underlying improvement we are seeing in customer acquisition and production. That will of course fund more as a 2027 impact. We are seeing some encouraging signs there. Again, would point to that unfunded provision increase. Samuel Varga: Thank you for taking my questions. Operator: Your next question comes from the line of Terry McEvoy with Wells Fargo. Your line is open. Please go ahead. Terry McEvoy: Great. Thank you. Good morning. First question, underneath the planned loan payoffs and paydowns, what is the underlying growth? I am trying to get a sense for what you refer to on your guidance slide as improved commercial production. Is that growth accelerating, and can that acceleration of growth continue into next year? I would love to have some context behind that. David Della Camera: Sure. I will start with a couple of comments. I think as we look YoY, we have seen a material increase in commercial production. I think there is one more increase we are looking for to have that underlying portfolio grow. From a reported perspective, and noted it a little bit in the prepared remarks, there are a series of portfolios in the near term impacting reported balances, which points to that underlying commercial book being closer to flat, but still modestly declining at this point. As we look to 2027, I would note the addition of RMs and capacity we think sits in the business. We are not today giving a specific point we think that turns, but we think we are closer than further away, and we think we have the right capacity in the business. Terry McEvoy: Great. Thank you. That is what I was looking for. Then maybe as a follow-up, what are the remaining opportunities to improve efficiency and basically, do you think you can generate positive operating leverage next year without meaningful balance sheet growth? David Della Camera: Sure. I would say again, it is still too early to provide a 2027 guide. I think as we look to our margin, we think through 2027 there is continued fixed asset repricing. I think it actually could become a little bit more meaningful in 2027 as you look to the quantity of loan maturities and then continued significant cash flow in the investment portfolio and a supportive yield curve. Then stability and modest growth in the underlying core low-cost deposit franchise is helpful. The combination of those we think is very powerful to NII. Again, just from a high-level perspective, there is significant quantity of trapped earnings in those assets that are curing currently and through 2027 and on. So, we think we are well-positioned. Again, we do not want to provide a 2027 guide today, but we think there are some very strong underlying factors supporting 2027 and forward. Terry McEvoy: Appreciate that. Thanks for taking my questions. Operator: Your next question comes from the line of Jeff Rulis with D.A. Davidson. Your line is open. Please go ahead. Jeff Rulis: Thanks. Jim, just wanted to circle back to a comment you made in the prepared remarks about the expense base supporting earning asset growth from here. You've had the branch sales in the rearview, and you kind of been bouncing non-interest expense in that $157 million, $158 million a quarter. Maybe trying to get a sense for what expense growth looks like. Maybe that comment implies that you kind of hold the line and can grow off that. Any other detail to help on what you meant by that would be helpful. Jim Reuter: Yeah. Thanks, Jeff. First, I just mentioned we'll be providing 2027 guide in January in the first quarter. But what that statement meant is, for the growth we want to go get, we have what we need in terms of RMs, technology, infrastructure. So there's no step-up needed from an investment standpoint to grow the bank beyond where we are today. Jeff Rulis: Okay. Appreciate the no guidance. Yeah, I'll step back. Thanks. David Della Camera: Jeff, would just add, I think YoY, and again, we won't provide the 2027 figure, but it is reasonable to expect normal inflationary factors on our expense base. So we wouldn't be holding to a nominal figure YoY when you get normal merit and things like that. But again, we don't view there's a significant missing piece of investment needed outside of normal factors. Jeff Rulis: Okay. Helpful. Thank you, David. Jim Reuter: All right. Well, thank you for joining the call today, and thank you for the questions. As always, we welcome calls from investors and analysts, so please reach out if you have any follow-up questions, and thank you for tuning into the call today. Have a good day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in First Interstate BancSystem, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and First Interstate BancSystem wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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- Interested in First Interstate BancSystem, Inc.? Here are five stocks we like better. - Net income fell to $62.2 million, or $0.65 per share, from $83.9 million in the second quarter, largely because the prior quarter included a $19.5 million gain from a Nebraska branch transaction. Net interest income rose 2% to $206.2 million, while the net interest margin expanded to 3.55%, marking its 10th consecutive quarter of improvement. - Deposits were broadly stable at $21.4 billion despite a $52.8 million decline, with a healthier mix as non-interest-bearing balances increased. Loans fell $296 million, and management expects further pressure as it exits certain non-relationship and out-of-market credits. - Credit metrics remained stable, with criticized loans down 19% year over year and nonperforming assets declining 6% sequentially. The company repurchased about 2 million shares for $76 million, maintained a $0.47 quarterly dividend, and plans to open two Colorado branches in the first half of 2027 while consolidating three locations. First Interstate BancSystem (NASDAQ:FIBK) reported third-quarter net income of $62.2 million, or $0.65 per diluted share, compared with $83.9 million, or $0.87 per diluted share, in the second quarter. The sequential decline reflected lower non-interest income, which had included a $19.5 million gain in the prior quarter from a Nebraska branch transaction. Net interest income increased $4 million, or 2%, from the prior quarter to $206.2 million. Fully taxable equivalent net interest margin expanded to 3.55% from 3.48% in the second quarter and 3.36% a year earlier, marking the company's 10th consecutive quarter of margin expansion. → The AI Buildout Is Only 15% Complete—Here Is Where the Next Dollar Actually Goes Chief Executive Officer Jim Reuter said the company continued to execute its multiyear strategy of improving the franchise's earnings power through relationship banking, branch optimization, targeted market investments and balance-sheet repositioning. "Our primary objective is to protect and strengthen the quality of the deposit franchise and add new customers," Reuter said. He said client acquisition remained strong in the Rocky Mountain region and that lending production remained concentrated in relationship-based clients with operating deposits and related services. → GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? Chief Financial Officer David Della Camera said loan yields increased 5 basis points during the quarter to 5.67%, while total funding costs fell 4 basis points. Deposit costs benefited from the departure of a large, high-cost, fully collateralized customer whose relationship did not meet the company's long-term return objectives. The exit contributed roughly 3 basis points of net interest margin improvement during the quarter, according to Della Camera, and did not materially affect net interest income. Excluding that account, deposits increased during the period. → Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs Total deposits declined $52.8 million to $21.4 billion, but the company said its deposit mix improved as non-interest-bearing balances rose for a second consecutive quarter. Della Camera said interest-bearing deposit costs were 1.51% for the full month of September, compared with 1.49% for the third quarter overall. Management said it expects underlying deposits to remain relatively stable in the fourth quarter, supported by customer acquisition and continued growth in non-interest-bearing balances. Della Camera noted that fourth-quarter deposit trends are typically stronger early in the quarter and weaker later in the period. Reuter added that the company has seen growth in the number of clients, which he attributed to branding efforts and bankers expanding customer relationships. He said client growth can support deposits and fee-income opportunities over time. Loans decreased $296 million in the third quarter, affected by a $47.7 million reduction in indirect lending, a $64.9 million decline in the retained out-of-market portfolio and a $36.8 million decline in the residential portfolio. Some expected third-quarter payoffs shifted into early in the fourth quarter, management said. The ratio of loans held for investment to deposits was 65.4% at quarter-end, down from 66.6% in the second quarter and 70.1% a year earlier. Management expects loan balances to remain under pressure in the fourth quarter as it continues exiting certain non-relationship and out-of-market credits, while deposits are expected to be flat to higher. Della Camera said commercial loan production has increased materially from a year ago, though certain portfolio runoffs have kept the underlying commercial portfolio near flat and still modestly declining. He said the company believes it has added the relationship-manager capacity needed to support future growth but did not provide a timetable for loan growth to resume. The company said asset repricing and reinvestment should continue to support earnings asset yields into 2027. Della Camera said new loan yields were in the mid-6% range during the third quarter, while investment portfolio reinvestment spreads were estimated in the 40- to 50-basis-point range for maturities of five years or more. Management said the balance sheet is broadly neutral to interest-rate changes from a net interest income perspective in both the near term and over the following 12 months. Net charge-offs rose $0.2 million sequentially to $9.9 million, or 28 basis points of average loans. First Interstate recorded a $10.5 million provision for credit losses, driven primarily by charge-offs, a 2-basis-point increase in the funded loan allowance for credit losses to 1.30%, and a higher unfunded allowance tied largely to increased unfunded construction commitments. Criticized loans increased $2.1 million, or 0.2%, from the second quarter but were down 19% from a year earlier. Nonperforming assets declined 6% during the quarter. Reuter said the company's credit teams continue to review criticized loans and stress upcoming maturities for higher rates as part of borrower renewal discussions. He said management expects continued long-term improvement in credit quality, while acknowledging that criticized loan levels may not improve in a straight line each quarter. First Interstate repurchased about 2 million shares for approximately $76 million in the third quarter. Since the share repurchase program began in late August 2025, the company has repurchased about 10 million shares totaling $347 million. The company also declared a quarterly common dividend of $0.47 per share, representing a 5% annualized yield based on the average closing share price during the third quarter. Its Common Equity Tier 1 capital ratio was 14.36% at quarter-end, down 18 basis points from the prior quarter, while its leverage ratio was 9.49%. Della Camera said the company intends to remain active in capital deployment but does not have a specific quarterly repurchase target. He said balance-sheet growth would become the preferred capital allocation opportunity as low-cost deposit and lending growth accelerate. Management said it plans to open two Colorado branches in the first half of 2027 while consolidating three locations in the fourth quarter of 2026. Reuter said the current expense base, technology, infrastructure and staffing levels support the company's intended growth without requiring a significant additional investment step-up beyond normal inflationary costs. First Interstate BancSystem, Inc is a financial holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides community banking services to individuals, businesses, agricultural customers and governmental entities. First Interstate Bank offers deposit accounts, consumer and commercial loans, mortgage lending, credit cards, cash-management and treasury-management services, online and mobile banking, and wealth-management and investment services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What First Interstate BancSystem (FIBK) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Net interest margin expanded for the 10th consecutive quarter, driven by disciplined fixed asset repricing and a low-cost, granular deposit base. - Management attributed the 2% sequential increase in net interest income to improved loan yields and a 4 basis point reduction in total funding costs. - The exit of a large, high-cost, fully collateralized customer improved net interest margin by approximately 3 basis points without materially impacting net interest income. - Strategic geographic pivots included exiting non-strategic markets and initiating a branch optimization program to focus on high-opportunity relationship growth areas like the Rocky Mountain region. - Credit quality remained stable with a 19% year-over-year decline in criticized loans, reflecting a long-term commitment to disciplined credit decision-making and proactive risk management. - The current expense base is viewed as sufficient to support future production capacity without requiring significant new infrastructure or technology investments. - Non-interest-bearing deposits increased for the second consecutive quarter, which management views as evidence that their relationship-based banking model is resonating with clients. - Management expects a smaller sequential margin benefit in the fourth quarter as the full impact of September deposit repricing offsets asset yield gains. - Guidance assumes meaningful commercial loan payoffs in the fourth quarter, particularly within the out-of-market and indirect lending portfolios. - Fixed asset repricing is expected to remain a tailwind for earning asset yields and underlying margin improvement through 2027. - The balance sheet is modeled as broadly neutral to net interest income over the next 12 months regarding interest rate sensitivity. - Branch optimization will continue with three consolidations planned for late 2026 and two new openings in Colorado scheduled for the first half of 2027. - Share repurchases totaled approximately 2 million shares in Q3, with management intending to remain active in capital deployment given their excess capital position. - A $10.5 million provision for credit losses was driven by charge-offs and an increase in the unfunded allowance due to higher construction commitments. - The investment portfolio strategy has shifted toward shorter durations to reduce balance sheet sensitivity to interest rate volatility. - Non-interest income decreased by $18.4 million sequentially, primarily due to the absence of a one-time gain from a Nebraska branch transaction in the prior quarter. - Management expects deposits to be roughly flat year-over-year when adjusted for branch sales and the exit of a large collateralized customer. - Confidence is driven by strength in non-interest-bearing accounts and typical seasonal strength early in the fourth quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management believes they have already entered the NII expansion phase of their strategy, even after adjusting for $1 billion in deposits lost through branch sales. - Growth is expected to be driven by the stabilization of the deposit profile and continued margin expansion. - While balance sheet growth is the first priority for capital, the bank remains in an excess capital position and intends to stay active in repurchases. - Specific quarterly targets were not provided, as deployment depends on market factors and the pace of lending growth. - Commercial production has increased materially year-over-year, though reported balances are currently weighed down by the exit of out-of-market portfolios. - Management stated that the current team and infrastructure have the capacity to support growth in 2027 without a step-up in investment. - Management proactively stresses upcoming maturities for higher rates to inform renewal conversations with borrowers. - Criticized loans are not expected to improve in a straight linear path, but the long-term trend remains positive due to disciplined primary repayment source reviews.

First Interstate BancSystem (FIBK) came out with quarterly earnings of $0.65 per share, missing the Zacks Consensus Estimate of $0.7 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -7.14%. A quarter ago, it was expected that this holding company for First Interstate Bank would post earnings of $0.64 per share when it actually produced earnings of $0.87, delivering a surprise of +35.94%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. First Interstate BancSystem, which belongs to the Zacks Banks - Midwest industry, posted revenues of $250.6 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.69%. This compares to year-ago revenues of $251.9 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. First Interstate BancSystem shares have added about 3.1% since the beginning of the year versus the S&P 500's gain of 13.3%. While First Interstate BancSystem has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for First Interstate BancSystem was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.71 on $250.91 million in revenues for the coming quarter and $2.88 on $992.86 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Eagle Bancorp Montana, Inc. (EBMT), another stock in the same industry, has yet to report results for the quarter ended September 2026. This company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of +19.6%. The consensus EPS estimate for the quarter has been revised 10.2% higher over the last 30 days to the current level. Eagle Bancorp Montana, Inc.'s revenues are expected to be $24.6 million, up 5.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Interstate BancSystem, Inc. (FIBK) : Free Stock Analysis Report Eagle Bancorp Montana, Inc. (EBMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended September 2026, First Interstate BancSystem (FIBK) reported revenue of $250.6 million, down 0.5% over the same period last year. EPS came in at $0.65, compared to $0.69 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $248.88 million, representing a surprise of +0.69%. The company delivered an EPS surprise of -7.14%, with the consensus EPS estimate being $0.70. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how First Interstate BancSystem performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Net FTE interest margin ratio: 3.6% versus 3.5% estimated by four analysts on average. - Net charge-offs to average loans: 0.3% versus the four-analyst average estimate of 0.3%. - Efficiency Ratio: 61.7% compared to the 63.7% average estimate based on four analysts. - Total risk-based capital to total risk-weighted assets: 17.2% compared to the 17.7% average estimate based on two analysts. - Average Balance - Total interest earning assets: $23.18 billion versus $23.36 billion estimated by two analysts on average. - Leverage ratio: 9.5% versus 9.8% estimated by two analysts on average. - Total non-performing loans: $151.1 million versus the two-analyst average estimate of $147.91 million. - Total non-performing assets: $155 million compared to the $153.68 million average estimate based on two analysts. - Tier 1 risk-based capital to total risk-weighted assets: 14.4% versus 14.9% estimated by two analysts on average. - Net Interest Income: $206.2 million versus the four-analyst average estimate of $204.89 million. - Total noninterest Income: $43.3 million compared to the $42.6 million average estimate based on four analysts. - Mortgage banking revenues: $1.5 million compared to the $1.56 million average estimate based on four analysts. View all Key Company Metrics for First Interstate BancSystem here>>> Shares of First Interstate BancSystem have returned -1% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Interstate BancSystem, Inc. (FIBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Regional banking company First Interstate BancSystem (NASDAQ:FIBK) met Wall Street's revenue expectations in Q3 2026, but sales were flat year on year at $249.5 million. Its GAAP profit of $0.65 per share was 5% below analysts' consensus estimates. Is now the time to buy First Interstate BancSystem? Find out in our full research report. - Net Interest Income: $206.2 million vs analyst estimates of $205.1 million (flat year on year, 0.5% beat) - Net Interest Margin: 3.5% vs analyst estimates of 3.5% (2.3 basis point beat) - Revenue: $249.5 million vs analyst estimates of $248.8 million (flat year on year, in line) - Efficiency Ratio: 61.7% vs analyst estimates of 63.8% (212.6 basis point beat) - EPS (GAAP): $0.65 vs analyst expectations of $0.68 (5% miss) - Tangible Book Value per Share: $21.20 vs analyst estimates of $22.34 (3.8% year-on-year decline, 5.1% miss) - Market Capitalization: $3.4 billion "We are pleased to see meaningful improvement in our net interest margin and an increase in non-interest bearing deposits, as we remain focused on strengthening the quality and earnings power of the franchise," said James A. Reuter, President and Chief Executive Officer of the Company. "We also continued to execute on our previously announced share repurchase authorization, underscoring our commitment to shareholder returns. Through disciplined capital deployment, operating model optimization, and continued investment in relationship growth, we are building a more efficient organization and remain confident in our ability to deliver improving returns over time." Tracing its roots back to 1971 and still guided by founding family principles, First Interstate BancSystem (NASDAQ:FIBK) operates a network of community banks across 10 western and midwestern states, offering comprehensive banking services to individuals, businesses, and government entities. In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investment banking, and trading fees. Unfortunately, First Interstate BancSystem's 9.1% annualized revenue growth over the last five years was mediocre. This was below our standard for the banking sector and is a tough starting point for our analysis. Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. First Interstate BancSystem's recent performance shows its demand has slowed as its revenue was flat over the last two years. This quarter, First Interstate BancSystem's $249.5 million of revenue was flat year on year and in line with Wall Street's estimates. Net interest income made up 82.4% of the company's total revenue during the last five years, meaning First Interstate BancSystem barely relies on non-interest income to drive its overall growth. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who's building AI, one company is already using it to print money. And nobody's paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won't last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice. Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions. This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules. First Interstate BancSystem's TBVPS was flat over the last five years. The last two years unveil a similar pattern as TBVPS was roughly flat at $21.20 per share. Over the next 12 months, Consensus estimates call for First Interstate BancSystem's TBVPS to grow by 9.1% to $23.14, paltry growth rate. It was good to see First Interstate BancSystem narrowly top analysts' net interest income expectations this quarter. On the other hand, its tangible book value per share missed and its EPS fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock remained flat at $36.88 immediately following the results. So do we think First Interstate BancSystem is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.

In its upcoming report, First Interstate BancSystem (FIBK) is predicted by Wall Street analysts to post quarterly earnings of $0.70 per share, reflecting an increase of 1.5% compared to the same period last year. Revenues are forecasted to be $248.88 million, representing a year-over-year decrease of 1.2%. The consensus EPS estimate for the quarter has undergone an upward revision of 2.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock. While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights. Bearing this in mind, let's now explore the average estimates of specific First Interstate BancSystem metrics that are commonly monitored and projected by Wall Street analysts. The combined assessment of analysts suggests that 'Net FTE interest margin ratio' will likely reach 3.5%. Compared to the current estimate, the company reported 3.4% in the same quarter of the previous year. Analysts' assessment points toward 'Efficiency Ratio' reaching 63.6%. The estimate compares to the year-ago value of 61.7%. Based on the collective assessment of analysts, 'Total risk-based capital to total risk-weighted assets' should arrive at 17.7%. Compared to the present estimate, the company reported 16.6% in the same quarter last year. According to the collective judgment of analysts, 'Average Balance - Total interest earning assets' should come in at $23.36 billion. Compared to the present estimate, the company reported $24.59 billion in the same quarter last year. Analysts expect 'Leverage ratio' to come in at 9.8%. Compared to the present estimate, the company reported 9.6% in the same quarter last year. The average prediction of analysts places 'Total non-performing loans' at $147.91 million. The estimate is in contrast to the year-ago figure of $182.20 million. The consensus among analysts is that 'Total non-performing assets' will reach $153.68 million. Compared to the present estimate, the company reported $185.60 million in the same quarter last year. The consensus estimate for 'Tier 1 risk-based capital to total risk-weighted assets' stands at 14.9%. Compared to the current estimate, the company reported 13.9% in the same quarter of the previous year. It is projected by analysts that the 'Net Interest Income' will reach $204.89 million. The estimate is in contrast to the year-ago figure of $206.80 million. The collective assessment of analysts points to an estimated 'Total noninterest Income' of $42.60 million. The estimate is in contrast to the year-ago figure of $43.70 million. Analysts forecast 'Wealth management revenues' to reach $10.72 million. Compared to the present estimate, the company reported $10.40 million in the same quarter last year. Analysts predict that the 'Net interest income on a fully-taxable equivalent basis' will reach $206.65 million. Compared to the current estimate, the company reported $208.20 million in the same quarter of the previous year. View all Key Company Metrics for First Interstate BancSystem here>>> Shares of First Interstate BancSystem have experienced a change of -2.7% in the past month compared to the +1% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), FIBK is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Interstate BancSystem, Inc. (FIBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Regional banking company First Interstate BancSystem (NASDAQ:FIBK) will be reporting results this Thursday after the bell. Here's what you need to know. First Interstate BancSystem missed analysts' revenue expectations last quarter, reporting revenues of $245.8 million, down 2.7% year on year. It was a strong quarter for the company, with a beat of analysts' EPS estimates and an impressive beat of analysts' tangible book value per share estimates. Is First Interstate BancSystem a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members. This quarter, the market is expecting First Interstate BancSystem's revenue to decline 1.2% year on year, a deceleration from its flat revenue in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. First Interstate BancSystem has missed Wall Street's revenue estimates multiple times over the last two years. Looking at First Interstate BancSystem's peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. QCR Holdings's revenues decreased 11.7% year on year, missing analysts' expectations by 8.9%, and Washington Trust Bancorp reported revenues up 15%, topping estimates by 4.1%. Washington Trust Bancorp traded up 4.2% following the results. Read our full analysis of QCR Holdings's results here and Washington Trust Bancorp's results here. Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the regional banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. First Interstate BancSystem is down 3.4% during the same time and is heading into earnings with an average analyst price target of $37 (compared to the current share price of $35.56). ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you're unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.

First Interstate BancSystem (FIBK) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This holding company for First Interstate Bank is expected to post quarterly earnings of $0.70 per share in its upcoming report, which represents a year-over-year change of +1.5%. Revenues are expected to be $248.88 million, down 1.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.17% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For First Interstate BancSystem, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.16%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that First Interstate BancSystem will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that First Interstate BancSystem would post earnings of $0.64 per share when it actually produced earnings of $0.87, delivering a surprise of +35.94%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. First Interstate BancSystem doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Banks - Midwest industry, Old Second Bancorp (OSBC), is soon expected to post earnings of $0.59 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +11.3%. Revenues for the quarter are expected to be $98.03 million, up 2.2% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Old Second Bancorp has been revised 1.7% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.54%, reflecting a higher Most Accurate Estimate. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Old Second Bancorp will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Interstate BancSystem, Inc. (FIBK) : Free Stock Analysis Report Old Second Bancorp, Inc. (OSBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research