First Interstate BancSystem’s fourth quarter results surpassed Wall Street’s expectations for both revenue and adjusted earnings, yet the market responded negatively, reflecting concerns raised during the earnings call. Management attributed the quarter’s performance to ongoing branch divestitures and a strategic shift away from non-core loan portfolios, both of which were designed to improve core profitability and optimize the company’s geographic footprint. CEO James Reuter highlighted, “We made meaningful progress to improve core profitability, refocus capital investment and optimize our balance sheet through reorienting our footprint to geographies where we have brand density, strong market share and high potential for growth.”

Is now the time to buy FIBK? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From First Interstate BancSystem’s Q4 Earnings Call

• Jeff Rulis (D.A. Davidson): Asked about the impact of loan runoff and production issues on overall loan balances. CEO James Reuter explained that most runoff stemmed from payoffs of criticized loans or intentional exits, and expressed optimism that organizational changes would boost production in 2026.
• Matthew Clark (Piper Sandler): Pressed for details on net interest margin trajectory and buyback cadence. CFO David Della Camera confirmed expectations for sequential margin improvement and continued active buybacks, subject to market conditions.
• Kelly Motta (KBW): Sought clarity on expense seasonality and loan guidance. Camera detailed that expenses should be relatively flat throughout the year and guidance assumes continued large loan payoffs in the near term.
• Andrew Terrell (Stephens, Inc.): Inquired about criticized loan trends and optimism for loan growth in the back half of the year. Reuter emphasized the proactive credit approach and confidence in the reorganized banking structure to drive future production.
• Jared Shaw (Barclays): Focused on the expansion strategy in Colorado and whether growth would be relationship-driven. Reuter stated that while loan growth may lead initially, the long-term goal is to secure full banking relationships in new and existing markets.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will be closely monitoring (1) execution of branch sales and additional network consolidation, (2) the effectiveness of the new organizational structure in accelerating loan growth and customer engagement, and (3) progress in net interest margin expansion as loan repricing continues. We will also track credit quality metrics and the pace of share repurchases as key indicators of management’s ability to deliver on strategic priorities.

First Interstate BancSystem currently trades at $37.62, up from $36.66 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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