The Zacks Analyst Blog Highlights First Interstate BancSystem, Southside Bancshares and First Hawaiian

For Immediate Release

Chicago, IL – October 1, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: First Interstate BancSystem, Inc. FIBK, Southside Bancshares Inc. SBSI and First Hawaiian, Inc. FHB.

Here are highlights from Wednesday’s Analyst Blog:

3 Bank Stocks Worth Buying Now with Attractive 4%+ Dividend Yields

Dividend-paying bank stocks can appeal to income-focused investors by offering a combination of recurring cash returns and exposure to the financial sector. While the interest-rate environment, credit trends and funding costs continue to shape banks’ earnings prospects, institutions with resilient balance sheets, healthy capital levels and steady cash flows may be better positioned to sustain shareholder payouts.

Against this backdrop, investors seeking income opportunities may want to keep an eye on three bank stocks, including First Interstate BancSystem, Inc., Southside Bancshares Inc. and First Hawaiian, Inc., currently offering dividend yields above 4%. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Over the past three months, all three aforementioned bank stocks have declined, potentially giving investors a more attractive entry point to consider.

Price Performance

Let’s take a closer look at what makes these three banks stand out in the current environment and the factors supporting their dividend payouts.

First Interstate BancSystem, headquartered in Billings, MT, is a community banking company that provides banking products and services to individuals, businesses and government entities across 12 states.

In 2025, the company began implementing a strategic plan focused on improving core profitability, optimizing its balance sheet and concentrating capital and resources on its core franchise. In line with these priorities, FIBK expects earnings to benefit from the repricing and reinvestment of maturing fixed-rate loans and securities, while its granular, low-cost deposit base is expected to generate net interest income (NII) in 2026.

As part of this effort, FIBK is also refining its branch network and reducing its presence in markets that are less aligned with its strategic priorities. In the second quarter of 2026, the company sold 11 Nebraska branches and closed six branches across Minnesota, Nebraska, and North Dakota.

Earlier, in October 2025, FIBK completed the divestiture of its banking operations in Arizona and Kansas. These actions are intended to redirect capital and resources toward core markets where FIBK has meaningful market share and attractive growth prospects. In line with this strategy, the company remains focused on deepening customer relationships through loan and deposit growth and expanding organically in established markets. Continued balance-sheet optimization and disciplined capital deployment are expected to further support efficiency and profitability.

The company maintains a solid liquidity position. As of June 30, 2026, FIBK had $1.17 billion in cash and cash equivalents, while total debt stood at nearly $752 million (60.5% being short-term in nature). It currently has a dividend yield of 5.2%. Over the past five years, it has increased its dividend once and has a 58% payout ratio. Check First Interstate BancSystem’s dividend history here.

 First Interstate BancSystem, Inc. dividend-yield-ttm | First Interstate BancSystem, Inc. Quote

Southside Bancshares, headquartered in Tyler, TX, is the holding company for Southside Bank, a community-focused financial institution offering consumer and commercial loans, deposit products, wealth management, trust and brokerage services across Texas.

SBSI is focused on expanding its Texas franchise while maintaining a disciplined balance sheet and capital management. The company is targeting loan growth by leveraging its presence in attractive Texas markets and a healthy loan pipeline, while newer construction loans are expected to begin funding in the second half of 2026. As a result, management expects mid-single-digit loan growth in 2026.

Alongside organic growth, the company is also evaluating bank acquisitions in Texas to expand its presence in key markets and strengthen its franchise, with potential deals aimed at filling geographic gaps in Dallas, Houston, Austin, East Texas and Southeast Texas.

Although higher funding costs are likely to keep some pressure on margins, management expects continued NII growth through the end of 2026. Repricing of certain lower-yielding fixed-rate loans is expected to support interest income, while SBSI’s asset-sensitive balance sheet could provide additional support to NII if interest rates remain stable or move higher.

As of June 30, 2026, SBSI had $397 million in cash and cash equivalents. The company also held $996 million in short-term borrowings and $628 million in long-term debt. Despite the weak liquidity position, it continued to maintain its dividend, raising it three times over the past five years (most recently by 2.8% in August 2026). The company currently offers a 4.9% dividend yield and has a 47% payout ratio. Check Southside Bancshares’ dividend history here.

 Southside Bancshares, Inc. dividend-yield-ttm | Southside Bancshares, Inc. Quote

First Hawaiian, headquartered in Honolulu, HI, is a community bank that provides commercial and consumer banking, wealth management, trust, credit card and merchant processing services across Hawaii, Guam and Saipan.

The company is strengthening its relationship-banking franchise while expanding its geographic footprint. In July 2026, First Hawaiian agreed to acquire TriCo Bancshares, the parent of Tri Counties Bank, in an all-stock transaction. The combination is expected to create a company with approximately $34 billion in assets, expand FHB’s mainland presence and provide greater geographic diversification and broader banking capabilities, subject to regulatory and shareholder approvals.

Alongside this expansion, FHB is focused on navigating the higher-rate environment through its asset-sensitive balance sheet and disciplined deposit-cost management. The company expects loan growth to support earning-asset yields, while disciplined deposit pricing is helping manage funding costs and support net interest margin (NIM). Management expects loans to increase 3-4% in 2026 compared with $14.14 billion recorded in 2025. Meanwhile, it also expects 2026 NIM of 3.24-3.25%, up from 3.15% in 2025.

FHB also maintains a solid liquidity position, with $1 billion in cash and cash equivalents and no short-term borrowings as of June 30, 2026. The company has consistently paid quarterly dividends, raising its payout by 8.3% to 26 cents per share in January 2019 and maintaining it since then. The stock currently offers a dividend yield of 4.2%. Check First Hawaiian’s dividend history here.

 First Hawaiian, Inc. dividend-yield-ttm | First Hawaiian, Inc. Quote

Free: Instant Access to Zacks' Market-Crushing Strategies

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. 

Get all the details here >>

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research