Regional banking company First Interstate BancSystem (NASDAQ: FIBK) announced better-than-expected revenue in Q2 CY2026, with sales up 4.4% year on year to $263.9 million. Its GAAP profit of $0.87 per share was 35.1% above analysts’ consensus estimates.

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“We are pleased to see continued improvement in our net interest margin and meaningful progress reducing criticized loans, 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.

Company Overview

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 14 western and midwestern states, offering comprehensive banking services to individuals, businesses, and government entities.

Sales Growth

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Regrettably, First Interstate BancSystem’s revenue grew at a mediocre 9.5% compounded annual growth rate over the last five years. This was below our standard for the banking sector and is a poor baseline for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. First Interstate BancSystem’s recent performance shows its demand has slowed as its revenue was flat over the last two years. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, First Interstate BancSystem reported modest year-on-year revenue growth of 4.4% but beat Wall Street’s estimates by 6.7%.

Net interest income made up 81.7% 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.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.

When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

First Interstate BancSystem’s TBVPS grew at a sluggish 1.4% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 7% annually over the last two years from $19.61 to $22.47 per share.

Over the next 12 months, Consensus estimates call for First Interstate BancSystem’s TBVPS to grow by 2.1% to $22.95, inadequate growth rate.

Key Takeaways from First Interstate BancSystem’s Q2 Results

It was good to see First Interstate BancSystem beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. On the other hand, its net interest income slightly missed. Zooming out, we think this was a solid print. The stock remained flat at $38.04 immediately following the results.

Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).