US Market News
1月前
First Interstate BancSystem, Inc. Reports First Quarter EarningsApril 29, 2026 4:15 PM
Business Wire
First Interstate BancSystem, Inc. (NASDAQ: FIBK) (the “Company”) today reported financial results for the first quarter of 2026. For the quarter, the Company reported net income of $60.2 million, or $0.61 per diluted share, which compares to net income of $108.8 million, or $1.08 per diluted share, for the fourth quarter of 2025 and net income of $50.2 million, or $0.49 per diluted share, for the first quarter of 2025.
HIGHLIGHTS
Net interest margin increased to 3.41% for the first quarter of 2026, a 5-basis point increase from the fourth quarter of 2025 and a 22-basis point increase from the first quarter of 2025.
Other borrowed funds were zero as of March 31, 2026 and December 31, 2025 as compared to $960.0 million as of March 31, 2025.
Net charge-offs decreased $19.7 million to $2.4 million, or an annualized 0.06% of average loans outstanding, as of March 31, 2026, from $22.1 million, or an annualized 0.56% of average loans outstanding, as of December 31, 2025, and decreased $6.6 million from $9.0 million, or an annualized 0.21% of average loans outstanding, as of March 31, 2025.
Criticized loans decreased $18.6 million to $1,033.2 million as of March 31, 2026, compared to $1,051.8 million as of December 31, 2025, and increased $7.1 million, compared to $1,026.1 million as of March 31, 2025.
Non-performing assets increased $24.2 million, or 17.5%, to $162.5 million as of March 31, 2026, from $138.3 million as of December 31, 2025 and decreased $35.9 million, or 18.1%, from $198.4 million as of March 31, 2025.
Total deposits decreased $205.3 million to $21,883.0 million as of March 31, 2026, compared to $22,088.3 million as of December 31, 2025 primarily due to decreases in all deposit categories except for savings deposits during the first quarter. Total deposits decreased $849.8 million, or 3.7% from March 31, 2025 with decreases in all deposit categories except for savings deposits primarily driven by the Arizona and Kansas branch sales which consisted of $641.6 million of deposits.
During the first quarter of 2026, the Company repurchased 2.39 million shares of common stock for a total repurchase of approximately $84.0 million, in addition to the Company’s repurchase of approximately 3.65 million shares of common stock through December 31, 2025 for a total repurchase of approximately $117.6 million. On January 27, 2026, the board of directors authorized an increase to the repurchase program of an additional $150.0 million, or a total of $300.0 million authorized since its adoption in August of 2025.
Common equity tier 1 capital ratio decreased 8 basis points during the first quarter of 2026 to 14.30%, compared to the fourth quarter of 2025, primarily as a result of shares repurchased during first quarter, partially offset by lower risk-weighted assets primarily driven by lower loan balances.
“We are pleased to see continued improvement in our net interest margin and continue to execute on our previously announced share repurchase authorization,” said James A Reuter, President and Chief Executive Officer of the Company. “We are encouraged with the underlying momentum in the business as we enter the second quarter, with a strong commercial pipeline and ongoing fixed asset repricing supporting our confidence in continued earnings improvement.”
DIVIDEND DECLARATION
On April 28, 2026, the Company’s board of directors declared a dividend of $0.47 per common share, payable on May 21, 2026, to common stockholders of record as of May 11, 2026. The dividend equates to a 5.3% annualized yield based on the $35.76 per share average closing price of the Company’s common stock as reported on NASDAQ during the first quarter of 2026.
NET INTEREST INCOME
Net interest income decreased $5.7 million to $200.7 million during the first quarter of 2026, compared to net interest income of $206.4 million during the fourth quarter of 2025. Net interest income decreased $4.3 million, or 2.1%, during the first quarter of 2026 compared to the first quarter of 2025. The quarterly decline from the fourth quarter of 2025 was primarily driven by lower interest income due to reduced loan yields and balances, and fewer accrual days, partially offset by higher investment balances and yields and lower interest expense due to reduced deposit balances and rates. Year-over-year lower interest earning assets and interest bearing liabilities were partially influenced by the reduction in loans and deposits related to the sale of the Arizona and Kansas branches during the fourth quarter of 2025, which resulted in a reduction of net interest income, in the first quarter of 2026.
Interest accretion attributable to the fair value of acquired loans, related to prior acquisitions, contributed to net interest income during the first quarter of 2026, the fourth quarter of 2025, and the first quarter of 2025, in the amounts of $3.1 million, $2.6 million, and $4.7 million, respectively.
Net interest margin ratio was 3.41% for the first quarter of 2026, compared to 3.36% during the fourth quarter of 2025, and 3.19% during the first quarter of 2025. Net FTE (fully-taxable equivalent) interest margin ratio1 was 3.43% for the first quarter of 2026, compared to 3.38% during the fourth quarter of 2025, and 3.22% during the first quarter of 2025. Excluding interest accretion from the fair value of acquired loans, the adjusted net FTE interest margin ratio1, was 3.38%, an increase of 4 basis points from the prior quarter, primarily driven by higher yields on higher average investment security balances and lower rates on lower interest bearing deposits, partially offset by lower loan yields on lower average loan balances. Excluding interest accretion from the fair value of acquired loans, on a year-over-year basis, the adjusted net FTE interest margin ratio increased 24 basis points, primarily as a result of lower interest expense resulting from decreased other borrowed funds balances.
____________________
1
Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” and the corresponding table captioned “Non-GAAP Financial Measures” included below for an explanation of the manner in which this measure is calculated and a reconciliation to this measure’s most directly comparable GAAP financial measure.
PROVISION FOR CREDIT LOSSES
During the first quarter of 2026, the Company recorded a provision for credit losses of $6.7 million. This compares to a provision for credit losses of $7.1 million and $20.0 million during the fourth quarter of 2025 and the first quarter of 2025, respectively.
For the first quarter of 2026, net loan charge-offs were $2.4 million, or an annualized 0.06% of average loans outstanding, compared to net loan charge-offs of $22.1 million, or an annualized 0.56% of average loans outstanding, for the fourth quarter of 2025 and net loan charge-offs of $9.0 million, or an annualized 0.21% of average loans outstanding, for the first quarter of 2025. Net loan charge-offs in the first quarter of 2026 were composed of charge-offs of $6.5 million offset by recoveries of $4.1 million. Net loan charge-offs in the fourth quarter of 2025 were composed of charge-offs of $24.5 million, primarily related to one loan of $15.8 million, which were offset by recoveries of $2.4 million. Net loan charge-offs in the first quarter of 2025 were composed of charge-offs of $10.8 million, which were offset by recoveries of $1.8 million.
The Company’s allowance for credit losses as a percentage of period-end loans held for investment was 1.33% at March 31, 2026, compared to 1.26% at December 31, 2025 and 1.24% at March 31, 2025. Coverage of non-performing loans decreased to 125.6% at March 31, 2026, compared to 141.9% at December 31, 2025 and increased from 110.5% at March 31, 2025.
NONINTEREST INCOME
For the Quarter Ended
Mar 31,
2026
Dec 31,
2025
$ Change
% Change
Mar 31,
2025
$ Change
% Change
(Dollars in millions)
Payment services revenues
$
15.6
$
16.2
$
(0.6
)
(3.7
)%
$
17.1
$
(1.5
)
(8.8
)%
Mortgage banking revenues
1.3
1.1
0.2
18.2
1.4
(0.1
)
(7.1
)
Wealth management revenues
10.5
10.7
(0.2
)
(1.9
)
9.8
0.7
7.1
Service charges on deposit accounts
6.5
6.5
—
—
6.6
(0.1
)
(1.5
)
Other service charges, commissions, and fees
2.1
2.3
(0.2
)
(8.7
)
2.3
(0.2
)
(8.7
)
Other income
5.1
69.8
(64.7
)
(92.7
)
4.8
0.3
6.3
Total noninterest income
$
41.1
$
106.6
$
(65.5
)
(61.4
)%
$
42.0
$
(0.9
)
(2.1
)%
Noninterest income was $41.1 million for the first quarter of 2026, decreasing $65.5 million compared to the fourth quarter of 2025 and decreasing $0.9 million compared to the first quarter of 2025. The decrease from the fourth quarter of 2025 was primarily due to the $62.7 million gain recorded in other income from the sale of the Arizona and Kansas branches during the fourth quarter of 2025.
Payment services revenues decreased $0.6 million and $1.5 million during the first quarter of 2026 compared to the fourth quarter of 2025 and the first quarter of 2025, respectively. The year-over-year decrease was mainly the result of lower consumer credit card interchange during the first quarter of 2026 as compared to the first quarter of 2025, related to the outsourcing of consumer credit cards in the second quarter of 2025.
NONINTEREST EXPENSE
For the Quarter Ended
Mar 31,
2026
Dec 31,
2025
$ Change
% Change
Mar 31,
2025
$ Change
% Change
(Dollars in millions)
Salaries and wages
$
68.5
$
74.8
$
(6.3
)
(8.4
)%
$
68.6
$
(0.1
)
(0.1
)%
Employee benefits
21.2
18.5
2.7
14.6
20.0
1.2
6.0
Occupancy and equipment
18.6
19.6
(1.0
)
(5.1
)
18.7
(0.1
)
(0.5
)
Other intangible amortization
3.3
3.4
(0.1
)
(2.9
)
3.4
(0.1
)
(2.9
)
Other expenses
47.1
50.4
(3.3
)
(6.5
)
49.4
(2.3
)
(4.7
)
Other real estate owned expense, net
(1.1
)
—
(1.1
)
NM
0.5
(1.6
)
NM
Total noninterest expense
$
157.6
$
166.7
$
(9.1
)
(5.5
)%
$
160.6
$
(3.0
)
(1.9
)%
The Company’s noninterest expense was $157.6 million for the first quarter of 2026, a decrease of $9.1 million from the fourth quarter of 2025 and a decrease of $3.0 million from the first quarter of 2025.
Salary and wages expense decreased $6.3 million to $68.5 million during the first quarter of 2026 compared to the fourth quarter of 2025, primarily due to lower short-term incentive accruals of $2.9 million and lower severance accruals of $2.9 million during the first quarter of 2026. Salaries and wages expense decreased $0.1 million to $68.5 million during the first quarter of 2026 compared to $68.6 million during the first quarter of 2025.
Employee benefit expenses increased $2.7 million to $21.2 million during the first quarter of 2026, compared to $18.5 million during the fourth quarter of 2025, primarily due to the seasonal reset of payroll taxes, partially offset by lower long-term incentives and medical insurance costs. Employee benefit expenses increased $1.2 million from $20.0 million during the first quarter of 2025, primarily due to higher health insurance costs of $3.1 million, partially offset by $1.6 million of lower long-term incentive accruals during the first quarter of 2026.
Occupancy and equipment expenses decreased $1.0 million to $18.6 million during the first quarter of 2026, compared to $19.6 million during the fourth quarter of 2025, primarily due to higher depreciation expense as a result of the impairments in the fourth quarter of 2025 for the pending branch closures that occurred in the first quarter of 2026. Occupancy and equipment expenses increased $0.1 million during the first quarter of 2026 from $18.7 million during the first quarter of 2025.
Other expenses decreased $3.3 million during the first quarter of 2026 compared to the fourth quarter of 2025, primarily due to a decrease of $1.5 million in professional fees and decreases in donations and various other expense categories. Other expenses decreased $2.3 million during the first quarter of 2026 compared to the first quarter of 2025, primarily due to a decrease in FDIC special assessment accruals.
Other real estate owned expense, net decreased $1.1 million during the first quarter of 2026 compared to the fourth quarter of 2025 and decreased $1.6 million during the first quarter of 2026 compared to the first quarter of 2025, primarily due to a positive fair value adjustment to a commercial property.
BALANCE SHEET
Total assets decreased $213.8 million, or 0.8%, to $26,426.8 million as of March 31, 2026, from $26,640.6 million as of December 31, 2025, primarily due to decreases in loans and cash and cash equivalents, which were partially offset by an increase in investment securities. Total assets decreased $1,853.0 million from $28,279.8 million as of March 31, 2025, primarily due to a decrease in loans which was partially driven by the sale of the branches in Arizona and Kansas during the fourth quarter of 2025. The funds from the loan declines were partially used to pay down debt, which were partially offset by increases in investment securities and cash and cash equivalents.
Investment securities increased $379.8 million to $8,010.0 million as of March 31, 2026, from $7,630.2 million as of December 31, 2025, primarily resulting from purchases of investment securities, partially offset by pay-downs, maturities, called securities, and a $23.5 million decrease in fair market values during the first quarter. Investment securities increased $506.2 million from $7,503.8 million as of March 31, 2025, primarily resulting from purchases of investment securities and a $93.6 million increase in fair market values during the period, partially offset by pay-downs, maturities, and called securities.
The following table presents the composition and comparison of loans held for investment as of the quarters-ended:
Mar 31,
2026
Dec 31,
2025
$ Change
% Change
Mar 31,
2025
$ Change
% Change
Real Estate:
Commercial
$
8,040.5
$
8,144.4
$
(103.9
)
(1.3
)%
$
9,196.1
$
(1,155.6
)
(12.6
)%
Construction
669.1
837.2
(168.1
)
(20.1
)
1,097.3
(428.2
)
(39.0
)
Residential
2,084.3
2,108.8
(24.5
)
(1.2
)
2,161.4
(77.1
)
(3.6
)
Agricultural
619.2
629.0
(9.8
)
(1.6
)
678.1
(58.9
)
(8.7
)
Total real estate
11,413.1
11,719.4
(306.3
)
(2.6
)
13,132.9
(1,719.8
)
(13.1
)
Consumer:
Indirect
419.4
477.5
(58.1
)
(12.2
)
680.2
(260.8
)
(38.3
)
Direct and advance lines
128.0
131.5
(3.5
)
(2.7
)
132.4
(4.4
)
(3.3
)
Credit card
—
—
—
—
74.2
(74.2
)
(100.0
)
Total consumer
547.4
609.0
(61.6
)
(10.1
)
886.8
(339.4
)
(38.3
)
Commercial
2,342.9
2,359.6
(16.7
)
(0.7
)
2,770.6
(427.7
)
(15.4
)
Agricultural
426.8
520.2
(93.4
)
(18.0
)
595.8
(169.0
)
(28.4
)
Other, including overdrafts
5.8
1.7
4.1
241.2
1.8
4.0
222.2
Deferred loan fees and costs
(7.6
)
(8.3
)
0.7
(8.4
)
(10.6
)
3.0
(28.3
)
Loans held for investment, net of deferred loan fees and costs
$
14,728.4
$
15,201.6
$
(473.2
)
(3.1
)%
$
17,377.3
$
(2,648.9
)
(15.2
)%
The decline in loans was impacted by $58.1 million of continued amortization of the indirect portfolio for which the Company stopped originating loans during the first quarter of 2025, agricultural loan payoffs, and other loan paydowns and payoffs during the first quarter of 2026.
The ratio of loans held for investment to deposits was 67.3%, as of March 31, 2026, compared to 68.8% as of December 31, 2025 and 76.4% as of March 31, 2025.
Total deposits decreased $205.3 million to $21,883.0 million as of March 31, 2026, from $22,088.3 million as of December 31, 2025, primarily due to decreases in all deposit categories except for savings deposits during the first quarter. Total deposits decreased $849.8 million, or 3.7%, from $22,732.8 million as of March 31, 2025, with decreases in all deposit categories except for savings deposits during the first quarter of 2026, primarily driven by the Arizona and Kansas branch sales during the fourth quarter of 2025 which consisted of $641.6 million of deposits.
Other borrowed funds is composed of variable-rate, overnight and fixed-rate borrowings with remaining contractual tenors of up to one year through the Federal Home Loan Bank. Other borrowed funds were zero as of March 31, 2026 and December 31, 2025, respectively. Other borrowed funds decreased $960.0 million from March 31, 2025. The decrease was funded by cash flows from paydowns and maturities of investment securities and loans.
The Company is considered to be “well-capitalized” as of March 31, 2026, having exceeded all regulatory capital adequacy requirements. During the first quarter of 2026, the Company paid regular common stock dividends of approximately $45.7 million, or $0.47 per share and repurchased approximately 2.4 million shares of common stock at a weighted average price of $35.09 per share pursuant to its stock repurchase program.
CREDIT QUALITY
As of March 31, 2026, non-performing assets increased $24.2 million, or 17.5%, to $162.5 million, compared to $138.3 million as of December 31, 2025, primarily as a result of an increase in non-accrual loans related to a single client relationship comprised of $20.2 million in commercial and commercial real estate non-accrual loans and an increase of $3.2 million in OREO.
Criticized loans decreased $18.6 million, or 1.8%, to $1,033.2 million as of March 31, 2026, from $1,051.8 million as of December 31, 2025, primarily as a result of upgrades as well as paydowns and payoffs in the portfolio.
NON-GAAP FINANCIAL MEASURES
In addition to results presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, this press release contains the following non-GAAP financial measures that management uses to evaluate our performance relative to our capital adequacy standards: (i) tangible common stockholders’ equity; (ii) tangible assets; (iii) tangible book value per common share; (iv) tangible common stockholders’ equity to tangible assets; (v) average tangible common stockholders’ equity; (vi) return on average tangible common stockholders’ equity; (vii) net FTE interest income; (viii) net FTE interest margin ratio; (ix) adjusted net FTE interest income; and (x) adjusted net FTE interest margin ratio. Tangible common stockholders’ equity is calculated as total common stockholders’ equity less goodwill and other intangible assets (excluding mortgage servicing rights). Tangible assets are calculated as total assets less goodwill and other intangible assets (excluding mortgage servicing rights). Tangible book value per common share is calculated as tangible common stockholders’ equity divided by common shares outstanding. Tangible common stockholders’ equity to tangible assets is calculated as tangible common stockholders’ equity divided by tangible assets. Average tangible common stockholders’ equity is calculated as average total stockholders’ equity less average goodwill and other intangible assets (excluding mortgage servicing rights). Return on average tangible common stockholders’ equity is calculated as annualized net income available to common shareholders divided by average tangible common stockholders’ equity. Net FTE interest income is calculated as net interest income, adjusted to include its FTE interest income. Net FTE interest margin ratio is calculated as net FTE interest income divided by average interest earning assets. Adjusted net FTE interest income is calculated as net FTE interest income less purchase accounting interest accretion on acquired loans. Adjusted net FTE interest margin ratio is calculated as annualized adjusted net FTE interest income divided by average interest earning assets. These non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies because other companies may not calculate these non-GAAP measures in the same manner. They also should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP.
The Company adjusts the most directly comparable capital adequacy GAAP financial measures to the non-GAAP financial measures described in subclauses (i) through (vi) above to exclude goodwill and other intangible assets (except mortgage servicing rights), adjusts its GAAP net interest income to include fully taxable equivalent adjustments and further adjusts its net interest income on a fully taxable equivalent basis to exclude purchase accounting interest accretion. Management believes these non-GAAP financial measures, which are intended to complement the capital ratios defined by banking regulators and to present on a consistent basis our and our acquired companies’ organic continuing operations without regard to acquisition costs and other adjustments that we consider to be unpredictable and dependent on a significant number of factors that are outside our control, are useful to investors in evaluating the Company’s performance because, as a general matter, they either do not represent an actual cash expense and are inconsistent in amount and frequency depending upon the timing and size of our acquisitions (including the size, complexity and/or volume of past acquisitions, which may drive the magnitude of acquisition related costs, but may not be indicative of the size, complexity and/or volume of future acquisitions or related costs), or they cannot be anticipated or estimated in a particular period (in particular as it relates to unexpected recovery amounts). This impacts the ratios that are important to analysts and allows investors to compare certain aspects of the Company’s capitalization to other companies.
See the “Non-GAAP Financial Measures” table included herein and the textual discussion for a reconciliation of the above-described non-GAAP financial measures to their most directly comparable GAAP financial measures.
Cautionary Note Regarding Forward-Looking Statements and Factors that Could Affect Future Results
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. Any statements about our plans, objectives, expectations, strategies, beliefs, or future performance, financial condition, results of operations, investment portfolio, market position, or events constitute forward-looking statements. Such statements are identified by words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trends,” “objectives,” “continues”, “projected,” as well as the negative forms of those words or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other important factors that could cause actual results to differ materially from any results, performance or events expressed or implied by such forward-looking statements. Furthermore, the following factors, among others, may cause actual results to differ materially from current expectations in the forward-looking statements, including those set forth in this press release:
new or changes in existing governmental regulations or in the way such regulations are interpreted or enforced;
negative developments in the banking industry and increased regulatory scrutiny;
tax legislative initiatives or assessments;
more stringent capital requirements, to the extent they may become applicable to us;
changes in accounting standards;
any failure to comply with applicable laws and regulations, including, but not limited to, the Community Reinvestment Act and fair lending laws, the USA PATRIOT ACT of 2001, the Office of Foreign Asset Control guidelines and requirements, the Bank Secrecy Act, and the related Financial Crimes Enforcement Network and Federal Financial Institutions Examination Council Guidelines and regulations;
federal deposit insurance assessment rate increases;
lending risks and risks associated with loan portfolio concentrations;
a decline in economic conditions that could reduce demand for our products and services and negatively impact the credit quality of loans;
credit losses on loans exceeding estimates;
potential effects on the U.S. economy resulting from the implementation of governmental policies, including tax regulations and changes to United States trade policies, including the imposition of tariffs and retaliatory tariffs and geopolitical uncertainty;
the soundness of other financial institutions;
the ability to meet cash flow needs and availability of financing sources for working capital and other needs;
a loss of deposits or a change in product mix that increases the Company’s funding costs;
inability to access funding or to monetize liquid assets;
changes in interest rates;
interest rate effect on the value of our investment securities;
cybersecurity risks, including business disruptions from denial-of-service attacks, network intrusions, business e-mail compromise, and other malicious behavior that could result in the disclosure of confidential information;
privacy, information security, and data protection laws, rules, and regulations that affect or limit how we collect and use personal information or otherwise have an adverse effect on us;
the potential impairment of our goodwill and other intangible assets;
our reliance on third parties that provide key components of our business infrastructure;
events that may tarnish our reputation;
mainstream and social media contagion;
the loss of the services of key members of our management team and directors;
our ability to attract and retain qualified employees to operate our business;
costs associated with repossessed properties, including potential environmental remediation;
the effectiveness of our operational processes, policies and procedures, and internal control over financial reporting;
our ability to implement technology-facilitated products and services or be successful in marketing these products and services to our clients;
the development and use of artificial intelligence ("AI");
risks related to acquisitions, mergers, strategic partnerships, divestitures, and other transactions;
competition from new or existing financial institutions and non-banks;
investing in technology;
incurrence of significant costs related to mergers and related integration activities;
the volatility in the price and trading volume of our common stock;
“anti-takeover” provisions in our certificate of incorporation and regulations, which may make it more difficult for a third party to acquire control of us even in circumstances that could be deemed beneficial to stockholders;
changes in our dividend policy or our ability to pay dividends;
the possibility that we may fail to realize the anticipated benefits of our stock repurchase program;
our common stock not being an insured deposit;
the potential dilutive effect of future equity issuances;
the subordination of our common stock to our existing and future indebtedness;
the effect of global conditions, earthquakes, volcanoes, tsunamis, floods, fires, drought, and other natural catastrophic events; and
the impact of climate change and environmental sustainability matters.
The foregoing factors are not necessarily all of the factors that could cause our actual results, performance, or achievements to differ materially from expectations. Other unknown or unpredictable factors also could harm our results.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and included and described in more detail in our periodic reports filed with the Securities and Exchange Commission, or SEC, under the Securities Exchange Act of 1934, as amended, under the caption “Risk Factors.” Interested parties are urged to read in their entirety such risk factors prior to making any investment decision with respect to the Company. Forward-looking statements speak only as of the date they are made, and we do not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
First Quarter 2026 Conference Call for Investors
First Interstate BancSystem, Inc. will host a conference call to discuss the results for the first quarter of 2026 at 9:30 a.m. Eastern Time (7:30 a.m. Mountain Time) on Thursday, April 30, 2026. The conference call will be accessible by telephone and through the Internet. Participants may join the call by dialing 1-800-715-9871; the access code is 5906009. To participate via the Internet, visit www.FIBK.com. The call will be recorded and made available for replay on April 30, 2026, after 1:00 p.m. Eastern Time (11:00 a.m. Mountain Time), through May 30, 2026, prior to 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time), by dialing 1-800-770-2030; the access code is 5906009. The call will also be archived on our website, www.FIBK.com, for one year.
About First Interstate BancSystem, Inc.
First Interstate BancSystem, Inc. is a financial and bank holding company focused on community banking. Incorporated in 1971 and headquartered in Billings, Montana, the Company operates banking offices, including detached drive-up facilities, in communities across Colorado, Idaho, Iowa, Missouri, Montana, Nebraska, Oregon, South Dakota, Washington, and Wyoming, in addition to offering online and mobile banking services. Through our bank subsidiary, First Interstate Bank, the Company delivers a comprehensive range of banking products and services to individuals, businesses, municipalities, and others throughout the Company’s market areas.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Quarter Ended
% Change
(In millions, except % and per share data)
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
1Q26 vs
4Q25
1Q26 vs
1Q25
Net interest income
$
200.7
$
206.4
$
206.8
$
207.2
$
205.0
(2.8
)%
(2.1
)%
Net interest income on a fully-taxable equivalent ("FTE") basis
202.0
207.7
208.2
208.6
206.6
(2.7
)
(2.2
)
Provision for (reduction of) credit losses
6.7
7.1
—
(0.3
)
20.0
(5.6
)
(66.5
)
Noninterest income:
Payment services revenues
15.6
16.2
16.8
17.8
17.1
(3.7
)
(8.8
)
Mortgage banking revenues
1.3
1.1
1.5
1.8
1.4
18.2
(7.1
)
Wealth management revenues
10.5
10.7
10.4
9.7
9.8
(1.9
)
7.1
Service charges on deposit accounts
6.5
6.5
7.0
6.9
6.6
—
(1.5
)
Other service charges, commissions, and fees
2.1
2.3
2.1
2.1
2.3
(8.7
)
(8.7
)
Total fee-based revenues
36.0
36.8
37.8
38.3
37.2
(2.2
)
(3.2
)
Other income
5.1
69.8
5.9
2.8
4.8
(92.7
)
6.3
Total noninterest income
41.1
106.6
43.7
41.1
42.0
(61.4
)
(2.1
)
Noninterest expense:
Salaries and wages
68.5
74.8
66.2
65.0
68.6
(8.4
)
(0.1
)
Employee benefits
21.2
18.5
18.2
17.9
20.0
14.6
6.0
Occupancy and equipment
18.6
19.6
18.5
18.6
18.7
(5.1
)
(0.5
)
Other intangible amortization
3.3
3.4
3.4
3.4
3.4
(2.9
)
(2.9
)
Other expenses
47.1
50.4
51.6
50.2
49.4
(6.5
)
(4.7
)
Other real estate owned expense, net
(1.1
)
—
—
—
0.5
NM
NM
Total noninterest expense
157.6
166.7
157.9
155.1
160.6
(5.5
)
(1.9
)
Income before income tax
77.5
139.2
92.6
93.5
66.4
(44.3
)
16.7
Provision for income tax
17.3
30.4
21.2
21.8
16.2
(43.1
)
6.8
Net income
$
60.2
$
108.8
$
71.4
$
71.7
$
50.2
(44.7
)%
19.9
%
Weighted-average basic shares outstanding
98,881
100,791
103,154
103,261
103,092
(1.9
)%
(4.1
)%
Weighted-average diluted shares outstanding
99,241
101,096
103,387
103,364
103,416
(1.8
)
(4.0
)
Earnings per share - basic
$
0.61
$
1.08
$
0.69
$
0.69
$
0.49
(43.5
)
24.5
Earnings per share - diluted
0.61
1.08
0.69
0.69
0.49
(43.5
)
24.5
NM - not meaningful
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES|
Consolidated Balance Sheets
(Unaudited)
% Change
(In millions, except % and per share data)
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
1Q26 vs
4Q25
1Q26 vs
1Q25
Assets:
Cash and due from banks
$
321.7
$
358.2
$
382.7
$
436.6
$
390.4
(10.2
)%
(17.6
)%
Interest bearing deposits in banks
886.9
951.4
1,066.4
653.5
480.9
(6.8
)
84.4
Federal funds sold
0.1
0.1
0.1
0.1
0.1
—
—
Cash and cash equivalents
1,208.7
1,309.7
1,449.2
1,090.2
871.4
(7.7
)
38.7
Investment securities, net
8,010.0
7,630.2
7,305.8
7,312.2
7,503.8
5.0
6.7
Investment in Federal Home Loan Bank and Federal Reserve Bank stock
106.3
106.3
106.8
118.1
150.1
NM
(29.2
)
Loans held for sale, at fair value
70.8
73.6
305.6
335.2
0.4
(3.8
)
NM
Loans held for investment
14,728.4
15,201.6
15,834.4
16,353.4
17,377.3
(3.1
)
(15.2
)
Allowance for credit losses
(195.8
)
(191.4
)
(205.8
)
(209.6
)
(215.3
)
2.3
(9.1
)
Net loans held for investment
14,532.6
15,010.2
15,628.6
16,143.8
17,162.0
(3.2
)
(15.3
)
Goodwill and intangible assets (excluding mortgage servicing rights)
1,178.9
1,182.2
1,185.5
1,188.9
1,192.4
(0.3
)
(1.1
)
Company owned life insurance
524.6
523.0
520.2
516.7
514.2
0.3
2.0
Premises and equipment
403.1
406.6
415.1
413.0
428.9
(0.9
)
(6.0
)
Other real estate owned
6.6
3.4
3.4
3.4
3.5
94.1
88.6
Mortgage servicing rights
22.5
23.1
23.8
24.4
24.9
(2.6
)
(9.6
)
Other assets
362.7
372.3
388.9
420.5
428.2
(2.6
)
(15.3
)
Total assets
$
26,426.8
$
26,640.6
$
27,332.9
$
27,566.4
$
28,279.8
(0.8
)%
(6.6
)%
Liabilities and stockholders' equity:
Deposits
$
21,883.0
$
22,088.3
$
22,605.0
$
22,630.6
$
22,732.8
(0.9
)%
(3.7
)%
Securities sold under repurchase agreements
476.1
479.6
485.2
509.3
528.0
(0.7
)
(9.8
)
Other borrowed funds
—
—
—
250.0
960.0
—
(100.0
)
Long-term debt
146.7
146.3
146.2
252.0
130.2
0.3
12.7
Subordinated debentures held by subsidiary trusts
149.9
149.8
163.1
163.1
163.1
0.1
(8.1
)
Other liabilities
412.6
329.6
484.7
339.6
404.4
25.2
2.0
Total liabilities
23,068.3
23,193.6
23,884.2
24,144.6
24,918.5
(0.5
)
(7.4
)
Stockholders' equity:
Common stock
2,265.5
2,350.9
2,439.3
2,463.5
2,460.2
(3.6
)
(7.9
)
Retained earnings
1,288.7
1,274.2
1,213.5
1,191.2
1,168.6
1.1
10.3
Accumulated other comprehensive loss
(195.7
)
(178.1
)
(204.1
)
(232.9
)
(267.5
)
9.9
(26.8
)
Total stockholders' equity
3,358.5
3,447.0
3,448.7
3,421.8
3,361.3
(2.6
)
(0.1
)
Total liabilities and stockholders' equity
$
26,426.8
$
26,640.6
$
27,332.9
$
27,566.4
$
28,279.8
(0.8
)%
(6.6
)%
Common shares outstanding at period end
98,820
101,106
103,967
104,874
104,910
(2.3
)%
(5.8
)%
Book value per common share at period end
$
33.99
$
34.09
$
33.17
$
32.63
$
32.04
(0.3
)
6.1
Tangible book value per common share at period end**
22.06
22.40
21.77
21.29
20.67
(1.5
)
6.7
**Non-GAAP financial measure - see “Non-GAAP Financial Measures” included herein for a reconciliation of book value per common share (GAAP) at period end to tangible book value per common share (non-GAAP) at period end.
NM - not meaningful
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Loans and Deposits
(Unaudited)
% Change
(In millions, except %)
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
1Q26 vs
4Q25
1Q26 vs
1Q25
Loans held for investment:
Real Estate:
Commercial
$
8,040.5
$
8,144.4
$
8,496.4
$
8,750.9
$
9,196.1
(1.3
)%
(12.6
)%
Construction
669.1
837.2
960.8
1,004.6
1,097.3
(20.1
)
(39.0
)
Residential
2,084.3
2,108.8
2,136.0
2,157.5
2,161.4
(1.2
)
(3.6
)
Agricultural
619.2
629.0
623.0
635.6
678.1
(1.6
)
(8.7
)
Total real estate
11,413.1
11,719.4
12,216.2
12,548.6
13,132.9
(2.6
)
(13.1
)
Consumer:
Indirect
419.4
477.5
540.3
607.1
680.2
(12.2
)
(38.3
)
Direct
128.0
131.5
134.3
134.4
132.4
(2.7
)
(3.3
)
Credit card
—
—
—
—
74.2
—
(100.0
)
Total consumer
547.4
609.0
674.6
741.5
886.8
(10.1
)
(38.3
)
Commercial
2,342.9
2,359.6
2,447.4
2,529.9
2,770.6
(0.7
)
(15.4
)
Agricultural
426.8
520.2
495.5
541.4
595.8
(18.0
)
(28.4
)
Other
5.8
1.7
10.2
2.0
1.8
241.2
222.2
Deferred loan fees and costs
(7.6
)
(8.3
)
(9.5
)
(10.0
)
(10.6
)
(8.4
)
(28.3
)
Loans held for investment
$
14,728.4
$
15,201.6
$
15,834.4
$
16,353.4
$
17,377.3
(3.1
)%
(15.2
)%
Deposits:
Noninterest bearing
$
5,229.0
$
5,286.8
$
5,555.7
$
5,579.0
$
5,590.2
(1.1
)%
(6.5
)%
Interest bearing:
Demand
6,257.3
6,319.7
6,324.7
6,465.4
6,439.2
(1.0
)
(2.8
)
Savings
7,961.7
7,843.5
7,954.0
7,789.6
7,876.4
1.5
1.1
Time, $250 thousand and over
694.7
792.9
851.1
837.3
823.4
(12.4
)
(15.6
)
Time, other
1,740.3
1,845.4
1,919.5
1,959.3
2,003.6
(5.7
)
(13.1
)
Total interest bearing
16,654.0
16,801.5
17,049.3
17,051.6
17,142.6
(0.9
)
(2.9
)
Total deposits
$
21,883.0
$
22,088.3
$
22,605.0
$
22,630.6
$
22,732.8
(0.9
)%
(3.7
)%
Total core deposits (1)
$
21,188.3
$
21,295.4
$
21,753.9
$
21,793.3
$
21,909.4
(0.5
)%
(3.3
)%
(1) Core deposits are defined as total deposits less time deposits, $250 thousand and over, and brokered deposits.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Credit Quality
(Unaudited)
% Change
(In millions, except %)
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
1Q26 vs
4Q25
1Q26 vs
1Q25
Allowance for Credit Losses:
Allowance for credit losses
$
195.8
$
191.4
$
205.8
$
209.6
$
215.3
2.3
%
(9.1
)%
As a percentage of loans held for investment
1.33
%
1.26
%
1.30
%
1.28
%
1.24
%
As a percentage of non-accrual loans
126.49
143.37
113.33
108.77
112.19
Net loan charge-offs during quarter
$
2.4
$
22.1
$
2.3
$
5.8
$
9.0
(89.1
)%
(73.3
)%
Annualized as a percentage of average loans
0.06
%
0.56
%
0.06
%
0.14
%
0.21
%
Non-Performing Assets:
Non-accrual loans
$
154.8
$
133.5
$
181.6
$
192.7
$
191.9
16.0
%
(19.3
)%
Accruing loans past due 90 days or more
1.1
1.4
0.6
1.4
3.0
(21.4
)
(63.3
)
Total non-performing loans
155.9
134.9
182.2
194.1
194.9
15.6
(20.0
)
Other real estate owned
6.6
3.4
3.4
3.4
3.5
94.1
88.6
Total non-performing assets
$
162.5
$
138.3
$
185.6
$
197.5
$
198.4
17.5
%
(18.1
)%
Non-performing assets as a percentage of:
Loans held for investment and OREO
1.10
%
0.91
%
1.17
%
1.21
%
1.14
%
Total assets
0.61
0.52
0.68
0.72
0.70
Non-accrual loans to loans held for investment
1.05
0.88
1.15
1.18
1.10
Allowance for credit losses coverage of non-performing loans
125.59
141.88
112.95
107.99
110.47
Accruing Loans 30-89 Days Past Due
$
71.9
$
82.7
$
28.5
$
52.2
$
90.2
(13.1
)%
(20.3
)%
Criticized Loans:
Special Mention
$
544.1
$
566.3
$
697.5
$
744.9
$
543.6
(3.9
)%
0.1
%
Substandard
421.1
441.4
416.9
427.8
469.5
(4.6
)
(10.3
)
Doubtful
68.0
44.1
49.7
30.3
13.0
54.2
423.1
Total
$
1,033.2
$
1,051.8
$
1,164.1
$
1,203.0
$
1,026.1
(1.8
)%
0.7
%
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Selected Ratios - Annualized
(Unaudited)
At or for the Quarter ended:
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Annualized Financial Ratios (GAAP)
Return on average assets
0.92
%
1.60
%
1.04
%
1.03
%
0.71
%
Return on average common stockholders' equity
7.08
12.40
8.22
8.46
6.07
Yield on average earning assets
4.63
4.67
4.73
4.76
4.75
Cost of average interest bearing liabilities
1.64
1.77
1.90
1.95
2.05
Interest rate spread
2.99
2.90
2.83
2.81
2.70
Efficiency ratio
63.81
52.17
61.68
61.10
63.64
Loans held for investment to deposit ratio
67.31
68.82
70.05
72.26
76.44
Annualized Financial Ratios - Operating** (Non-GAAP)
Net FTE interest margin ratio
3.43
%
3.38
%
3.36
%
3.32
%
3.22
%
Tangible book value per common share
$
22.06
$
22.40
$
21.77
$
21.29
$
20.67
Tangible common stockholders' equity to tangible assets
8.63
%
8.90
%
8.66
%
8.47
%
8.01
%
Return on average tangible common stockholders' equity
10.77
18.79
12.53
13.01
9.42
Consolidated Capital Ratios
Total risk-based capital to total risk-weighted assets
17.07
%
*
17.06
%
16.62
%
16.49
%
14.93
%
Tier 1 risk-based capital to total risk-weighted assets
14.30
*
14.38
13.90
13.43
12.53
Tier 1 common capital to total risk-weighted assets
14.30
*
14.38
13.90
13.43
12.53
Leverage Ratio
9.56
*
9.61
9.60
9.37
9.06
*Preliminary estimate - may be subject to change. The regulatory capital ratios presented include the assumption of the transitional method as a result of legislation by the United States Congress to provide relief for the economy and financial institutions in the United States from the COVID-19 pandemic. The referenced relief ended on December 31, 2024, which allowed a total five-year phase-in of the impact of CECL on capital.
**Non-GAAP financial measures - see “Non-GAAP Financial Measures” included herein for a reconciliation of net interest margin (GAAP) to net FTE interest margin ratio (non-GAAP), book value per common share (GAAP) to tangible book value per common share (non-GAAP), average common stockholders’ equity to average assets (GAAP) to tangible common stockholders’ equity to tangible assets (non-GAAP), and return on average common stockholders’ equity (GAAP) to return on average tangible common stockholders’ equity.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Average Balance Sheets
(Unaudited)
Three Months Ended
March 31, 2026
December 31, 2025
March 31, 2025
(In millions, except %)
Average
Balance
Interest(3)
Average
Rate
Average
Balance
Interest(3)
Average
Rate
Average
Balance
Interest(3)
Average
Rate
Interest earning assets:
Loans (1)
$
15,032.1
$
207.6
5.60
%
$
15,540.5
$
222.0
5.67
%
$
17,668.6
$
243.5
5.59
%
Investment securities
Taxable (2)
7,705.1
55.2
2.91
7,355.2
50.7
2.73
7,464.3
51.3
2.79
Tax-exempt
176.0
0.8
1.84
178.7
0.9
2.00
182.6
0.9
2.00
Investment in FHLB and FRB stock
106.3
1.2
4.58
106.7
1.1
4.09
175.9
2.9
6.69
Interest bearing deposits in banks
848.7
7.8
3.73
1,177.0
11.8
3.98
567.5
6.3
4.50
Federal funds sold
0.1
—
—
0.1
—
—
0.1
—
—
Total interest earning assets
$
23,868.3
$
272.6
4.63
%
$
24,358.2
$
286.5
4.67
%
$
26,059.0
$
304.9
4.75
%
Noninterest earning assets
2,613.2
2,668.6
2,759.9
Total assets
$
26,481.5
$
27,026.8
$
28,818.9
Interest bearing liabilities:
Demand deposits
$
6,199.9
$
12.8
0.84
%
$
6,316.6
$
14.9
0.94
%
$
6,412.7
$
14.4
0.91
%
Savings deposits
7,876.9
32.7
1.68
7,882.6
35.7
1.80
7,800.3
35.7
1.86
Time deposits
2,556.5
19.1
3.03
2,685.8
21.9
3.24
2,863.0
25.0
3.54
Repurchase agreements
479.6
1.0
0.85
496.4
1.2
0.96
533.0
1.2
0.91
Other borrowed funds
—
—
—
—
—
NM
1,533.5
17.5
4.63
Long-term debt
146.5
2.6
7.20
146.3
2.5
6.78
132.0
1.7
5.22
Subordinated debentures held by subsidiary trusts
149.9
2.4
6.49
150.8
2.6
6.84
163.1
2.8
6.96
Total interest bearing liabilities
$
17,409.3
$
70.6
1.64
%
$
17,678.5
$
78.8
1.77
%
$
19,437.6
$
98.3
2.05
%
Noninterest bearing deposits
5,214.2
5,424.3
5,608.2
Other noninterest bearing liabilities
411.4
442.7
418.0
Stockholders’ equity
3,446.6
3,481.3
3,355.1
Total liabilities and stockholders’ equity
$
26,481.5
$
27,026.8
$
28,818.9
Net FTE interest income (non-GAAP)(4)
$
202.0
$
207.7
$
206.6
Less FTE adjustments (3)
(1.3
)
(1.3
)
(1.6
)
Net interest income from consolidated statements of income
$
200.7
$
206.4
$
205.0
Interest rate spread
2.99
%
2.90
%
2.70
%
Net interest margin
3.41
3.36
3.19
Net FTE interest margin ratio (non-GAAP)(4)
3.43
3.38
3.22
Cost of funds, including noninterest bearing demand deposits (5)
1.27
1.35
1.59
(1)
Average loan balances include loans held for sale and loans held for investment, net of deferred fees and costs, which include non-accrual loans. Interest income includes amortization of deferred loan fees net of deferred loan costs, which is not material for the periods presented.
(2)
Includes average balance of unsettled trades on investment securities.
(3)
Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax exempt loans and securities to an FTE basis utilizing a 21% tax rate.
(4)
Non-GAAP financial measure - see “Non-GAAP Financial Measures” included herein for a reconciliation to GAAP measures.
(5)
Calculated by dividing total annualized interest on interest bearing liabilities by the sum of total interest bearing liabilities plus noninterest bearing deposits.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(Unaudited)
As of or For the Quarter Ended
(In millions, except % and per share data)
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Total common stockholders' equity (GAAP)
(A)
$
3,358.5
$
3,447.0
$
3,448.7
$
3,421.8
$
3,361.3
Less goodwill and other intangible assets (excluding mortgage servicing rights)
1,178.9
1,182.2
1,185.5
1,188.9
1,192.4
Tangible common stockholders' equity (Non-GAAP)
(B)
$
2,179.6
$
2,264.8
$
2,263.2
$
2,232.9
$
2,168.9
Total assets (GAAP)
$
26,426.8
$
26,640.6
$
27,332.9
$
27,566.4
$
28,279.8
Less goodwill and other intangible assets (excluding mortgage servicing rights)
1,178.9
1,182.2
1,185.5
1,188.9
1,192.4
Tangible assets (Non-GAAP)
(C)
$
25,247.9
$
25,458.4
$
26,147.4
$
26,377.5
$
27,087.4
Average Balances:
Total common stockholders' equity (GAAP)
(D)
$
3,446.6
$
3,481.3
$
3,447.8
$
3,401.1
$
3,355.1
Less goodwill and other intangible assets (excluding mortgage servicing rights)
1,180.3
1,183.7
1,187.1
1,190.5
1,193.9
Average tangible common stockholders' equity (Non-GAAP)
(E)
$
2,266.3
$
2,297.6
$
2,260.7
$
2,210.6
$
2,161.2
Net interest income (GAAP)
(F)
$
200.7
$
206.4
$
206.8
$
207.2
$
205.0
FTE interest income
1.3
1.3
1.4
1.4
1.6
Net FTE interest income (Non-GAAP)
(G)
202.0
207.7
208.2
208.6
206.6
Less purchase accounting accretion on acquired loans
3.1
2.6
3.5
4.2
4.7
Adjusted net FTE interest income (Non-GAAP)
(H)
$
198.9
$
205.1
$
204.7
$
204.4
$
201.9
Average interest earning assets
(I)
$
23,868.3
$
24,358.2
$
24,589.5
$
25,180.1
$
26,059.0
Total quarterly average assets
(J)
26,481.5
27,026.8
27,292.4
27,898.4
28,818.9
Annualized net income available to common shareholders
(K)
244.1
431.7
283.3
287.6
203.6
Common shares outstanding
(L)
98,820
101,106
103,967
104,874
104,910
Return on average assets (GAAP)
(K) / (J)
0.92
%
1.60
%
1.04
%
1.03
%
0.71
%
Return on average common stockholders' equity (GAAP)
(K) / (D)
7.08
12.40
8.22
8.46
6.07
Average common stockholders' equity to average assets (GAAP)
(D) / (J)
13.02
12.88
12.63
12.19
11.64
Book value per common share (GAAP)
(A) / (L)
$
33.99
$
34.09
$
33.17
$
32.63
$
32.04
Tangible book value per common share (Non-GAAP)
(B) / (L)
22.06
22.40
21.77
21.29
20.67
Tangible common stockholders' equity to tangible assets (Non-GAAP)
(B) / (C)
8.63
%
8.90
%
8.66
%
8.47
%
8.01
%
Return on average tangible common stockholders' equity (Non-GAAP)
(K) / (E)
10.77
18.79
12.53
13.01
9.42
Net interest margin (GAAP)
(F*) / (I)
3.41
3.36
3.34
3.30
3.19
Net FTE interest margin ratio (Non-GAAP)
(G*) / (I)
3.43
3.38
3.36
3.32
3.22
Adjusted net FTE interest margin ratio (Non-GAAP)
(H*) / (I)
3.38
3.34
3.30
3.26
3.14
*Annualized
View source version on businesswire.com: https://www.businesswire.com/news/home/20260429682336/en/
David P. Della Camera, CFA
Chief Financial Officer
First Interstate BancSystem, Inc.
(406) 255-5363
investor.relations@fib.com
NASDAQ: FIBK
www.FIBK.com
(FIBK-ER)
Original: First Interstate BancSystem, Inc. Reports First Quarter Earnings
US Market News
4月前
First Interstate BancSystem, Inc. Reports Fourth Quarter EarningsJanuary 28, 2026 4:05 PM
Business Wire
First Interstate BancSystem, Inc. (NASDAQ: FIBK) (the “Company”) today reported financial results for the fourth quarter of 2025. For the quarter, the Company reported net income of $108.8 million, or $1.08 per diluted share, which compares to net income of $71.4 million, or $0.69 per diluted share, for the third quarter of 2025 and net income of $52.1 million, or $0.50 per diluted share, for the fourth quarter of 2024.
For the year ended December 31, 2025, the Company reported net income of $302.1 million, or $2.94 per diluted share, compared to $226.0 million, or $2.19 per diluted share, for the year ended December 31, 2024.
HIGHLIGHTS
Completed the sale of the Arizona and Kansas branches on October 10, 2025 resulting in a gain of $62.7 million for the fourth quarter of 2025.
Announced in October, the Company plans to close four Nebraska branches in February 2026. This is in addition to the pending sale of 11 Nebraska branches, consisting of $72.5 million in loans and $303.5 million of deposits as of December 31, 2025. That transaction is expected to close in early second quarter of 2026. The Company also intends to close the single branch locations in Minnesota and North Dakota in February 2026.
Net interest margin increased to 3.36% for the fourth quarter of 2025, a 2-basis point increase from the third quarter of 2025 and an 18-basis point increase from the fourth quarter of 2024.
Other borrowed funds were zero as of December 31, 2025 and September 30, 2025 as compared to $1,567.5 million as of December 31, 2024.
Non-performing assets decreased $47.3 million, or 25.5%, to $138.3 million as of December 31, 2025, from $185.6 million as of September 30, 2025 and decreased $7.3 million, or 5.0%, from $145.6 million as of December 31, 2024.
Net charge-offs increased $19.8 million to $22.1 million, or an annualized 0.56% of average loans outstanding, as of December 31, 2025, from $2.3 million, or an annualized 0.06% of average loans outstanding, as of September 30, 2025, and decreased $33.1 million from $55.2 million, or an annualized 1.22% of average loans outstanding, as of December 31, 2024.
Criticized loans decreased $112.3 million to $1,051.8 million as of December 31, 2025, compared to $1,164.1 million as of September 30, 2025, and increased $278.5 million, compared to $773.3 million as of December 31, 2024.
Total deposits increased $124.9 million excluding $641.6 million of deposits sold in the Arizona and Kansas branch sale transaction in the fourth quarter of 2025. Total deposits decreased $516.7 million at December 31, 2025 from September 30, 2025 and decreased $927.3 million, or 4.0% from December 31, 2024.
Since the adoption of its $150 million stock repurchase program on August 28, 2025, the Company repurchased approximately 3.65 million shares of common stock through December 31, 2025 for a total repurchase of approximately $117.6 million. On January 27, 2026, the board of directors authorized an increase to the repurchase program of an additional $150.0 million, or a total of $300.0 million since August of 2025.
Capital ratios continued to improve during the fourth quarter of 2025, with the common equity tier 1 capital ratio increasing 48 basis points to 14.38%, compared to the third quarter of 2025, primarily as a result of lower risk-weighted assets partially driven by the Arizona and Kansas branch sales during the fourth quarter of 2025.
“We made continued, meaningful progress as we advance through each phase of our strategic plan. Our net interest margin continues to improve, we continued executing on our previously announced share repurchase program, and we were pleased to see reductions in non-performing and criticized assets as we continue to take a proactive approach to credit risk management. Given our strong capital position, we further increased our share repurchase authorization,” said James A Reuter, President and Chief Executive Officer of the Company. “We are pleased to continue to add strong talent to First Interstate, while elevating key leaders within the organization to support organic growth. Our strong and flexible liquidity and capital levels are expected to provide a solid foundation to drive growth and returns for our shareholders.”
DIVIDEND DECLARATION
On January 27, 2026, the Company’s board of directors declared a dividend of $0.47 per common share, payable on February 20, 2026, to common stockholders of record as of February 10, 2026. The dividend equates to a 5.7% annualized yield based on the $32.72 per share average closing price of the Company’s common stock as reported on NASDAQ during the fourth quarter of 2025.
NET INTEREST INCOME
Net interest income decreased $0.4 million to $206.4 million during the fourth quarter of 2025, compared to net interest income of $206.8 million during the third quarter of 2025. Net interest income decreased $7.9 million, or 3.7%, during the fourth quarter of 2025 compared to the fourth quarter of 2024. The decrease compared to the fourth quarter of 2024 was mainly the result of lower interest income as a result of a decrease in average rates, average investment security balances, and average loan balances, partially offset by a decrease in interest expense resulting from a decrease in the average other borrowed funds balance. Year-over-year lower interest earning assets and interest bearing liabilities were partially influenced by the reduction in loans of $291.5 million and deposits of $641.6 million related to the sale of the Arizona and Kansas branches, which resulted in a reduction of net interest income, in the fourth quarter of 2025.
Interest accretion attributable to the fair value of acquired loans, related to prior acquisitions, contributed to net interest income during the fourth quarter of 2025, the third quarter of 2025, and the fourth quarter of 2024, in the amounts of $2.6 million, $3.5 million, and $8.6 million, respectively.
Net interest margin ratio was 3.36% for the fourth quarter of 2025, compared to 3.34% during the third quarter of 2025, and 3.18% during the fourth quarter of 2024. Net FTE (fully-taxable equivalent) interest margin ratio1 was 3.38% for the fourth quarter of 2025, compared to 3.36% during the third quarter of 2025, and 3.20% during the fourth quarter of 2024. Excluding interest accretion from the fair value of acquired loans, the adjusted net FTE interest margin ratio1, was 3.34%, an increase of 4 basis points from the prior quarter, primarily driven by higher yields on higher average investment security balances and lower interest bearing deposit costs, partially offset by lower loan yields. Excluding interest accretion from the fair value of acquired loans, on a year-over-year basis, the adjusted net FTE interest margin ratio increased 26 basis points, primarily as a result of lower interest expense resulting from decreased other borrowed funds balances.
____________________
1 Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” and the corresponding table captioned “Non-GAAP Financial Measures” included below for an explanation of the manner in which this measure is calculated and a reconciliation to this measure’s most directly comparable GAAP financial measure.
PROVISION FOR CREDIT LOSSES
During the fourth quarter of 2025, the Company recorded a provision for credit losses of $7.1 million. This compares to a provision for credit losses of zero and $33.7 million during the third quarter of 2025 and the fourth quarter of 2024, respectively.
For the fourth quarter of 2025, net charge-offs were $22.1 million, or an annualized 0.56% of average loans outstanding, compared to net charge-offs of $2.3 million, or an annualized 0.06% of average loans outstanding, for the third quarter of 2025 and net charge-offs of $55.2 million, or an annualized 1.22% of average loans outstanding, for the fourth quarter of 2024. Net loan charge-offs in the fourth quarter of 2025 were composed of charge-offs of $24.5 million, primarily related to one loan of $15.8 million which had a specific reserve of $11.6 million as of September 30, 2025, offset by recoveries of $2.4 million. Net loan charge-offs in the third quarter of 2025 were composed of charge-offs of $6.7 million, which was offset by recoveries of $4.4 million. Net loan charge-offs in the fourth quarter of 2024 were composed of charge-offs of $58.3 million, which was offset by recoveries of $3.1 million.
The Company’s allowance for credit losses as a percentage of period-end loans held for investment was 1.26% at December 31, 2025, compared to 1.30% at September 30, 2025 and 1.14% at December 31, 2024. Coverage of non-performing loans increased to 141.9% at December 31, 2025, compared to 113.0% at September 30, 2025 and decreased from 144.4% at December 31, 2024.
NONINTEREST INCOME
For the Quarter Ended
Dec 31, 2025
Sep 30, 2025
$ Change
% Change
Dec 31, 2024
$ Change
% Change
(Dollars in millions)
Payment services revenues
$
16.2
$
16.8
$
(0.6
)
(3.6
)%
$
17.9
$
(1.7
)
(9.5
)%
Mortgage banking revenues
1.1
1.5
(0.4
)
(26.7
)
1.5
(0.4
)
(26.7
)
Wealth management revenues
10.7
10.4
0.3
2.9
10.6
0.1
0.9
Service charges on deposit accounts
6.5
7.0
(0.5
)
(7.1
)
6.7
(0.2
)
(3.0
)
Other service charges, commissions, and fees
2.3
2.1
0.2
9.5
2.5
(0.2
)
(8.0
)
Other income
69.8
5.9
63.9
NM
7.8
62.0
NM
Total noninterest income
$
106.6
$
43.7
$
62.9
143.9
%
$
47.0
$
59.6
126.8
%
Noninterest income was $106.6 million for the fourth quarter of 2025, increasing $62.9 million compared to the third quarter of 2025 and increasing $59.6 million compared to the fourth quarter of 2024, primarily due to a $62.7 million gain from the sale of the Arizona and Kansas branches.
Payment services revenues decreased $0.6 million and $1.7 million during the fourth quarter of 2025 compared to the third quarter of 2025 and the fourth quarter of 2024, respectively. The decrease was mainly the result of lower consumer credit card interchange during the fourth quarter of 2025 as compared to the fourth quarter of 2024, related to the outsourcing of consumer credit cards in the second quarter of 2025.
Other income increased $63.9 million to $69.8 million during the fourth quarter of 2025, compared to $5.9 million during the third quarter of 2025. The increase is primarily due to the $62.7 million gain from the sale of the Arizona and Kansas branches, which transaction closed on October 10, 2025, and the gain-on-sale of certain equity securities of $1.4 million during the fourth quarter of 2025. Other income increased $62.0 million from $7.8 million during the fourth quarter of 2024, primarily due to the gain from the sale of the Arizona and Kansas branches and the gain-on-sale of certain equity securities, partially offset by a gain-on-sale of assets of $2.1 million during the fourth quarter of 2024.
NONINTEREST EXPENSE
For the Quarter Ended
Dec 31, 2025
Sep 30, 2025
$ Change
% Change
Dec 31, 2024
$ Change
% Change
(Dollars in millions)
Salaries and wages
$
74.8
$
66.2
$
8.6
13.0
%
$
68.5
$
6.3
9.2
%
Employee benefits
18.5
18.2
0.3
1.6
20.5
(2.0
)
(9.8
)
Occupancy and equipment
19.6
18.5
1.1
5.9
18.2
1.4
7.7
Other intangible amortization
3.4
3.4
—
—
3.6
(0.2
)
(5.6
)
Other expenses
50.4
51.6
(1.2
)
(2.3
)
50.0
0.4
—
Other real estate owned expense
—
—
—
—
0.1
(0.1
)
NM
Total noninterest expense
$
166.7
$
157.9
$
8.8
5.6
%
$
160.9
$
5.8
3.6
%
The Company’s noninterest expense was $166.7 million for the fourth quarter of 2025, an increase of $8.8 million from the third quarter of 2025 and an increase of $5.8 million from the fourth quarter of 2024.
Salary and wages expense increased $8.6 million to $74.8 million during the fourth quarter of 2025 compared to the third quarter of 2025, primarily due to higher short-term incentive accruals of $5.6 million and severance accruals of $4.2 million, partially offset by lower salaries of $1.2 million during the fourth quarter of 2025. Salaries and wages expense increased $6.3 million to $74.8 million from $68.5 million during the fourth quarter of 2024, primarily due to higher severance costs and higher short-term incentive accruals during the fourth quarter of 2025.
Employee benefit expenses increased $0.3 million to $18.5 million during the fourth quarter of 2025, compared to $18.2 million during the third quarter of 2025. Employee benefit expenses decreased $2.0 million from $20.5 million during the fourth quarter of 2024, primarily due to lower health insurance costs, partially offset by higher long-term incentive accruals during the fourth quarter of 2025.
Occupancy and equipment expenses increased $1.1 million to $19.6 million during the fourth quarter of 2025, compared to $18.5 million during the third quarter of 2025 and increased $1.4 million during the fourth quarter of 2025 from $18.2 million during the fourth quarter of 2024, primarily due to changes related to the pending branch closures and snow removal costs during the fourth quarter of 2025.
Other expenses decreased $1.2 million during the fourth quarter of 2025 compared to the third quarter of 2025, primarily due to the reversal of $1.2 million related to the FDIC special assessment accrual as a result of the FDIC interim rule collection update released in December 2025. Other expenses increased $0.4 million during the fourth quarter of 2025 compared to the fourth quarter of 2024.
BALANCE SHEET
Total assets decreased $692.3 million, or 2.5%, to $26,640.6 million as of December 31, 2025, from $27,332.9 million as of September 30, 2025, primarily due to a decrease in loans. Total assets decreased $2,496.8 million from $29,137.4 million as of December 31, 2024, primarily due to decreases in investment securities and loans, the funds from which were partially used to pay down debt.
Investment securities increased $324.4 million to $7,630.2 million as of December 31, 2025, from $7,305.8 million as of September 30, 2025, primarily resulting from purchases and a $34.2 million increase in fair market values partially offset by pay-downs, maturities, and called securities during the fourth quarter. Investment securities decreased $114.4 million from $7,744.6 million as of December 31, 2024, primarily resulting from called securities and normal pay-downs and maturities, partially offset by purchases of investment securities and a $187.8 million increase in fair market values during the period.
The following table presents the composition and comparison of loans held for investment as of the quarters-ended:
Dec 31, 2025
Sep 30, 2025
$ Change
% Change
Dec 31, 2024
$ Change
% Change
Real Estate:
Commercial
$
8,144.4
$
8,496.4
$
(352.0
)
(4.1
)%
$
9,263.2
$
(1,118.8
)
(12.1
)%
Construction
837.2
960.8
(123.6
)
(12.9
)
1,244.6
(407.4
)
(32.7
)
Residential
2,108.8
2,136.0
(27.2
)
(1.3
)
2,191.6
(82.8
)
(3.8
)
Agricultural
629.0
623.0
6.0
1.0
701.1
(72.1
)
(10.3
)
Total real estate
11,719.4
12,216.2
(496.8
)
(4.1
)
13,400.5
(1,681.1
)
(12.5
)
Consumer:
Indirect
477.5
540.3
(62.8
)
(11.6
)
725.0
(247.5
)
(34.1
)
Direct and advance lines
131.5
134.3
(2.8
)
(2.1
)
134.0
(2.5
)
(1.9
)
Credit card
—
—
—
—
77.6
(77.6
)
(100.0
)
Total consumer
609.0
674.6
(65.6
)
(9.7
)
936.6
(327.6
)
(35.0
)
Commercial
2,359.6
2,447.4
(87.8
)
(3.6
)
2,829.4
(469.8
)
(16.6
)
Agricultural
520.2
495.5
24.7
5.0
687.9
(167.7
)
(24.4
)
Other, including overdrafts
1.7
10.2
(8.5
)
(83.3
)
1.6
0.1
6.3
Deferred loan fees and costs
(8.3
)
(9.5
)
1.2
(12.6
)
(11.1
)
2.8
(25.2
)
Loans held for investment, net of deferred loan fees and costs
$
15,201.6
$
15,834.4
$
(632.8
)
(4.0
)%
$
17,844.9
$
(2,643.3
)
(14.8
)%
The decline in loans was impacted by $62.8 million of continued amortization of the indirect portfolio for which the Company stopped originating loans during the first quarter of 2025, $72.5 million of loans held for investment that were transferred to loans held-for-sale related to the pending sale of the Nebraska branches and larger loan paydowns and payoffs during the fourth quarter of 2025.
The ratio of loans held for investment to deposits was 68.8%, as of December 31, 2025, compared to 70.1% as of September 30, 2025 and 77.5% as of December 31, 2024.
Total deposits decreased $516.7 million to $22,088.3 million as of December 31, 2025, from $22,605.0 million as of September 30, 2025, primarily due to decreases in all deposit categories during the fourth quarter, driven by the Arizona and Kansas branch sales which consisted of $641.6 million of deposits. Total deposits decreased $927.3 million, or 4.0%, from $23,015.6 million as of December 31, 2024, with decreases in all deposit categories except for savings deposits during the fourth quarter of 2025, primarily driven by the Arizona and Kansas branch sales which consisted of $641.6 million of deposits.
Other borrowed funds is composed of variable-rate, overnight and fixed-rate borrowings with remaining contractual tenors of up to one year through the Federal Home Loan Bank. Other borrowed funds were zero as of December 31, 2025 and September 30, 2025, respectively. Other borrowed funds decreased $1,567.5 million from December 31, 2024. The decrease was funded by cash flows from paydowns and maturities of investment securities and loans, which were utilized for the pay-off of the Federal Home Loan Bank borrowings.
The Company is considered to be “well-capitalized” as of December 31, 2025, having exceeded all regulatory capital adequacy requirements. During the fourth quarter of 2025, the Company paid regular common stock dividends of approximately $48.1 million, or $0.47 per share and repurchased approximately 2.8 million shares of common stock at a weighted average price of $32.06 per share pursuant to its stock repurchase program discussed above.
CREDIT QUALITY
As of December 31, 2025, non-performing assets decreased $47.3 million, or 25.5%, to $138.3 million, compared to $185.6 million as of September 30, 2025, primarily as a result of a decrease in non-accrual loans related to a single client relationship comprised of $19.6 million in commercial real estate and $13.5 million in commercial non-accrual loans.
Criticized loans decreased $112.3 million, or 9.6%, to $1,051.8 million as of December 31, 2025, from $1,164.1 million as of September 30, 2025, primarily as a result of upgrades as well as paydowns, payoffs, and charge offs in the portfolio.
NON-GAAP FINANCIAL MEASURES
In addition to results presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, this press release contains the following non-GAAP financial measures that management uses to evaluate our performance relative to our capital adequacy standards: (i) tangible common stockholders’ equity; (ii) tangible assets; (iii) tangible book value per common share; (iv) tangible common stockholders’ equity to tangible assets; (v) average tangible common stockholders’ equity; (vi) return on average tangible common stockholders’ equity; (vii) net FTE interest income; (viii) net FTE interest margin ratio; (ix) adjusted net FTE interest income; and (x) adjusted net FTE interest margin ratio. Tangible common stockholders’ equity is calculated as total common stockholders’ equity less goodwill and other intangible assets (excluding mortgage servicing rights). Tangible assets are calculated as total assets less goodwill and other intangible assets (excluding mortgage servicing rights). Tangible book value per common share is calculated as tangible common stockholders’ equity divided by common shares outstanding. Tangible common stockholders’ equity to tangible assets is calculated as tangible common stockholders’ equity divided by tangible assets. Average tangible common stockholders’ equity is calculated as average total stockholders’ equity less average goodwill and other intangible assets (excluding mortgage servicing rights). Return on average tangible common stockholders’ equity is calculated as annualized net income available to common shareholders divided by average tangible common stockholders’ equity. Net FTE interest income is calculated as net interest income, adjusted to include its FTE interest income. Net FTE interest margin ratio is calculated as net FTE interest income divided by average interest earning assets. Adjusted net FTE interest income is calculated as net FTE interest income less purchase accounting interest accretion on acquired loans. Adjusted net FTE interest margin ratio is calculated as annualized adjusted net FTE interest income divided by average interest earning assets. These non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies because other companies may not calculate these non-GAAP measures in the same manner. They also should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP.
The Company adjusts the most directly comparable capital adequacy GAAP financial measures to the non-GAAP financial measures described in subclauses (i) through (vi) above to exclude goodwill and other intangible assets (except mortgage servicing rights), adjusts its GAAP net interest income to include fully taxable equivalent adjustments and further adjusts its net interest income on a fully taxable equivalent basis to exclude purchase accounting interest accretion. Management believes these non-GAAP financial measures, which are intended to complement the capital ratios defined by banking regulators and to present on a consistent basis our and our acquired companies’ organic continuing operations without regard to acquisition costs and other adjustments that we consider to be unpredictable and dependent on a significant number of factors that are outside our control, are useful to investors in evaluating the Company’s performance because, as a general matter, they either do not represent an actual cash expense and are inconsistent in amount and frequency depending upon the timing and size of our acquisitions (including the size, complexity and/or volume of past acquisitions, which may drive the magnitude of acquisition related costs, but may not be indicative of the size, complexity and/or volume of future acquisitions or related costs), or they cannot be anticipated or estimated in a particular period (in particular as it relates to unexpected recovery amounts). This impacts the ratios that are important to analysts and allows investors to compare certain aspects of the Company’s capitalization to other companies.
See the “Non-GAAP Financial Measures” table included herein and the textual discussion for a reconciliation of the above-described non-GAAP financial measures to their most directly comparable GAAP financial measures.
Cautionary Note Regarding Forward-Looking Statements and Factors that Could Affect Future Results
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. Any statements about our plans, objectives, expectations, strategies, beliefs, or future performance, financial condition, results of operations, investment portfolio, market position, or events constitute forward-looking statements. Such statements are identified by words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trends,” “objectives,” “continues”, “projected,” as well as the negative forms of those words or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other important factors that could cause actual results to differ materially from any results, performance or events expressed or implied by such forward-looking statements. Furthermore, the following factors, among others, may cause actual results to differ materially from current expectations in the forward-looking statements, including those set forth in this press release:
new or changes in existing governmental regulations or in the way such regulations are interpreted or enforced;
negative developments in the banking industry and increased regulatory scrutiny;
tax legislative initiatives or assessments;
more stringent capital requirements, to the extent they may become applicable to us;
changes in accounting standards;
any failure to comply with applicable laws and regulations, including, but not limited to, the Community Reinvestment Act and fair lending laws, the USA PATRIOT ACT of 2001, the Office of Foreign Asset Control guidelines and requirements, the Bank Secrecy Act, and the related Financial Crimes Enforcement Network and Federal Financial Institutions Examination Council Guidelines and regulations;
federal deposit insurance assessment rate increases;
lending risks and risks associated with loan portfolio concentrations;
a decline in economic conditions that could reduce demand for our products and services and negatively impact the credit quality of loans;
credit losses on loans exceeding estimates;
potential effects on the U.S. economy resulting from the implementation of governmental policies, including tax regulations and changes to United States trade policies, including the imposition of tariffs and retaliatory tariffs and geopolitical uncertainty;
the soundness of other financial institutions;
the ability to meet cash flow needs and availability of financing sources for working capital and other needs;
a loss of deposits or a change in product mix that increases the Company’s funding costs;
inability to access funding or to monetize liquid assets;
changes in interest rates;
interest rate effect on the value of our investment securities;
cybersecurity risks, including business disruptions from denial-of-service attacks, network intrusions, business e-mail compromise, and other malicious behavior that could result in the disclosure of confidential information;
privacy, information security, and data protection laws, rules, and regulations that affect or limit how we collect and use personal information or otherwise have an adverse effect on us;
the potential impairment of our goodwill and other intangible assets;
our reliance on third parties that provide key components of our business infrastructure;
events that may tarnish our reputation;
mainstream and social media contagion;
the loss of the services of key members of our management team and directors;
our ability to attract and retain qualified employees to operate our business;
costs associated with repossessed properties, including potential environmental remediation;
the effectiveness of our operational processes, policies and procedures, and internal control over financial reporting;
our ability to implement technology-facilitated products and services or be successful in marketing these products and services to our clients;
the development and use of artificial intelligence ("AI");
risks related to acquisitions, mergers, strategic partnerships, divestitures, and other transactions;
competition from new or existing financial institutions and non-banks;
investing in technology;
incurrence of significant costs related to mergers and related integration activities;
the volatility in the price and trading volume of our common stock;
“anti-takeover” provisions in our certificate of incorporation and regulations, which may make it more difficult for a third party to acquire control of us even in circumstances that could be deemed beneficial to stockholders;
changes in our dividend policy or our ability to pay dividends;
the possibility that we may fail to realize the anticipated benefits of our stock repurchase program;
our common stock not being an insured deposit;
the potential dilutive effect of future equity issuances;
the subordination of our common stock to our existing and future indebtedness;
the effect of global conditions, earthquakes, volcanoes, tsunamis, floods, fires, drought, and other natural catastrophic events; and
the impact of climate change and environmental sustainability matters.
The foregoing factors are not necessarily all of the factors that could cause our actual results, performance, or achievements to differ materially from expectations. Other unknown or unpredictable factors also could harm our results.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and included and described in more detail in our periodic reports filed with the Securities and Exchange Commission, or SEC, under the Securities Exchange Act of 1934, as amended, under the caption “Risk Factors.” Interested parties are urged to read in their entirety such risk factors prior to making any investment decision with respect to the Company. Forward-looking statements speak only as of the date they are made, and we do not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Fourth Quarter 2025 Conference Call for Investors
First Interstate BancSystem, Inc. will host a conference call to discuss the results for the fourth quarter of 2025 at 9:30 a.m. Eastern Time (7:30 a.m. Mountain Time) on Thursday, January 29, 2026. The conference call will be accessible by telephone and through the Internet. Participants may join the call by dialing 1-800-549-8228; the access code is 06978. To participate via the Internet, visit www.FIBK.com. The call will be recorded and made available for replay on January 29, 2026, after 1:00 p.m. Eastern Time (11:00 a.m. Mountain Time), through February 28, 2026, prior to 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time), by dialing 1-888-660-6264; the access code is 06978. The call will also be archived on our website, www.FIBK.com, for one year.
About First Interstate BancSystem, Inc.
First Interstate BancSystem, Inc. is a financial and bank holding company focused on community banking. Incorporated in 1971 and headquartered in Billings, Montana, the Company operates banking offices, including detached drive-up facilities, in communities across Colorado, Idaho, Iowa, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oregon, South Dakota, Washington, and Wyoming, in addition to offering online and mobile banking services. Through our bank subsidiary, First Interstate Bank, the Company delivers a comprehensive range of banking products and services to individuals, businesses, municipalities, and others throughout the Company’s market areas.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Quarter Ended
% Change
(In millions, except % and per share data)
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Dec 31,
2024
4Q25 vs 3Q25
4Q25 vs 4Q24
Net interest income
$
206.4
$
206.8
$
207.2
$
205.0
$
214.3
(0.2
)%
(3.7
)%
Net interest income on a fully-taxable equivalent ("FTE") basis
207.7
208.2
208.6
206.6
215.9
(0.2
)
(3.8
)
Provision for (reduction of) credit losses
7.1
—
(0.3
)
20.0
33.7
NM
(78.9
)
Noninterest income:
Payment services revenues
16.2
16.8
17.8
17.1
17.9
(3.6
)
(9.5
)
Mortgage banking revenues
1.1
1.5
1.8
1.4
1.5
(26.7
)
(26.7
)
Wealth management revenues
10.7
10.4
9.7
9.8
10.6
2.9
0.9
Service charges on deposit accounts
6.5
7.0
6.9
6.6
6.7
(7.1
)
(3.0
)
Other service charges, commissions, and fees
2.3
2.1
2.1
2.3
2.5
9.5
(8.0
)
Total fee-based revenues
36.8
37.8
38.3
37.2
39.2
(2.6
)
(6.1
)
Other income
69.8
5.9
2.8
4.8
7.8
NM
NM
Total noninterest income
106.6
43.7
41.1
42.0
47.0
143.9
126.8
Noninterest expense:
Salaries and wages
74.8
66.2
65.0
68.6
68.5
13.0
9.2
Employee benefits
18.5
18.2
17.9
20.0
20.5
1.6
(9.8
)
Occupancy and equipment
19.6
18.5
18.6
18.7
18.2
5.9
7.7
Other intangible amortization
3.4
3.4
3.4
3.4
3.6
—
(5.6
)
Other expenses
50.4
51.6
50.2
49.4
50.0
(2.3
)
—
Other real estate owned expense
—
—
—
0.5
0.1
—
NM
Total noninterest expense
166.7
157.9
155.1
160.6
160.9
5.6
3.6
Income before income tax
139.2
92.6
93.5
66.4
66.7
50.3
108.7
Provision for income tax
30.4
21.2
21.8
16.2
14.6
43.4
108.2
Net income
$
108.8
$
71.4
$
71.7
$
50.2
$
52.1
52.4
%
108.8
%
Weighted-average basic shares outstanding
100,791
103,154
103,261
103,092
103,083
(2.3
)%
(2.2
)%
Weighted-average diluted shares outstanding
101,096
103,387
103,364
103,416
103,399
(2.2
)
(2.2
)
Earnings per share - basic
$
1.08
$
0.69
$
0.69
$
0.49
$
0.51
56.5
111.8
Earnings per share - diluted
1.08
0.69
0.69
0.49
0.50
56.5
116.0
NM - not meaningful
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Year Ended December 31,
% Change
(In millions, except % and per share data)
2025
2024
2025 vs 2024
Net interest income
$
825.4
$
821.6
0.5
Net interest income on a fully-taxable equivalent ("FTE") basis
831.1
828.2
0.4
Provision for credit losses
26.8
67.8
(60.5
)
Noninterest income:
Payment services revenues
67.9
73.6
(7.7
)
Mortgage banking revenues
5.8
6.6
(12.1
)
Wealth management revenues
40.6
38.8
4.6
Service charges on deposit accounts
27.0
25.7
5.1
Other service charges, commissions, and fees
8.8
9.0
(2.2
)
Total fee-based revenues
150.1
153.7
(2.3
)
Other income
83.3
24.4
241.4
Total noninterest income
233.4
178.1
31.0
Noninterest expense:
Salaries and wages
274.6
270.9
1.4
Employee benefits
74.6
76.4
(2.4
)
Occupancy and equipment
75.4
69.4
8.6
Other intangible amortization
13.6
14.6
(6.8
)
Other expenses
201.6
202.0
(0.2
)
Other real estate owned expense
0.5
4.1
NM
Total noninterest expense
640.3
637.4
0.5
Income before income tax
391.7
294.5
33.0
Provision for income tax
89.6
68.5
30.8
Net income
$
302.1
$
226.0
33.7
Weighted-average basic shares outstanding
102,570
102,978
(0.4
)
Weighted-average diluted shares outstanding
102,831
103,191
(0.3
)
Earnings per share - basic
$
2.95
$
2.19
34.7
Earnings per share - diluted
2.94
2.19
34.2
NM - not meaningful
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
% Change
(In millions, except % and per share data)
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Dec 31,
2024
4Q25 vs 3Q25
4Q25 vs 4Q24
Assets:
Cash and due from banks
$
358.2
$
382.7
$
436.6
$
390.4
$
378.0
(6.4
)%
(5.2
)%
Interest bearing deposits in banks
951.4
1,066.4
653.5
480.9
518.5
(10.8
)
83.5
Federal funds sold
0.1
0.1
0.1
0.1
0.1
—
—
Cash and cash equivalents
1,309.7
1,449.2
1,090.2
871.4
896.6
(9.6
)
46.1
Investment securities, net
7,630.2
7,305.8
7,312.2
7,503.8
7,744.6
4.4
(1.5
)
Investment in Federal Home Loan Bank and Federal Reserve Bank stock
106.3
106.8
118.1
150.1
177.4
(0.5
)
(40.1
)
Loans held for sale, at fair value
73.6
305.6
335.2
0.4
0.9
(75.9
)
NM
Loans held for investment
15,201.6
15,834.4
16,353.4
17,377.3
17,844.9
(4.0
)
(14.8
)
Allowance for credit losses
(191.4
)
(205.8
)
(209.6
)
(215.3
)
(204.1
)
(7.0
)
(6.2
)
Net loans held for investment
15,010.2
15,628.6
16,143.8
17,162.0
17,640.8
(4.0
)
(14.9
)
Goodwill and intangible assets (excluding mortgage servicing rights)
1,182.2
1,185.5
1,188.9
1,192.4
1,195.7
(0.3
)
(1.1
)
Company owned life insurance
523.0
520.2
516.7
514.2
513.0
0.5
1.9
Premises and equipment
406.6
415.1
413.0
428.9
427.2
(2.0
)
(4.8
)
Other real estate owned
3.4
3.4
3.4
3.5
4.3
—
(20.9
)
Mortgage servicing rights
23.1
23.8
24.4
24.9
25.7
(2.9
)
(10.1
)
Other assets
372.3
388.9
420.5
428.2
511.2
(4.3
)
(27.2
)
Total assets
$
26,640.6
$
27,332.9
$
27,566.4
$
28,279.8
$
29,137.4
(2.5
)%
(8.6
)%
Liabilities and stockholders' equity:
Deposits
$
22,088.3
$
22,605.0
$
22,630.6
$
22,732.8
$
23,015.6
(2.3
)%
(4.0
)%
Securities sold under repurchase agreements
479.6
485.2
509.3
528.0
523.9
(1.2
)
(8.5
)
Other borrowed funds
—
—
250.0
960.0
1,567.5
—
(100.0
)
Long-term debt
146.3
146.2
252.0
130.2
132.2
0.1
10.7
Subordinated debentures held by subsidiary trusts
149.8
163.1
163.1
163.1
163.1
(8.2
)
(8.2
)
Other liabilities
329.6
484.7
339.6
404.4
431.1
(32.0
)
(23.5
)
Total liabilities
23,193.6
23,884.2
24,144.6
24,918.5
25,833.4
(2.9
)
(10.2
)
Stockholders' equity:
Common stock
2,350.9
2,439.3
2,463.5
2,460.2
2,459.5
(3.6
)
(4.4
)
Retained earnings
1,274.2
1,213.5
1,191.2
1,168.6
1,166.4
5.0
9.2
Accumulated other comprehensive loss
(178.1
)
(204.1
)
(232.9
)
(267.5
)
(321.9
)
(12.7
)
(44.7
)
Total stockholders' equity
3,447.0
3,448.7
3,421.8
3,361.3
3,304.0
—
4.3
Total liabilities and stockholders' equity
$
26,640.6
$
27,332.9
$
27,566.4
$
28,279.8
$
29,137.4
(2.5
)%
(8.6
)%
Common shares outstanding at period end
101,106
103,967
104,874
104,910
104,586
(2.8
)%
(3.3
)%
Book value per common share at period end
$
34.09
$
33.17
$
32.63
$
32.04
$
31.59
2.8
7.9
Tangible book value per common share at period end**
22.40
21.77
21.29
20.67
20.16
2.9
11.1
**Non-GAAP financial measure - see “Non-GAAP Financial Measures” included herein for a reconciliation of book value per common share (GAAP) at period end to tangible book value per common share (non-GAAP) at period end.
NM - not meaningful
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Loans and Deposits
(Unaudited)
% Change
(In millions, except %)
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Dec 31,
2024
4Q25 vs 3Q25
4Q25 vs 4Q24
Loans held for investment:
Real Estate:
Commercial
$
8,144.4
$
8,496.4
$
8,750.9
$
9,196.1
$
9,263.2
(4.1
)%
(12.1
)%
Construction
837.2
960.8
1,004.6
1,097.3
1,244.6
(12.9
)
(32.7
)
Residential
2,108.8
2,136.0
2,157.5
2,161.4
2,191.6
(1.3
)
(3.8
)
Agricultural
629.0
623.0
635.6
678.1
701.1
1.0
(10.3
)
Total real estate
11,719.4
12,216.2
12,548.6
13,132.9
13,400.5
(4.1
)
(12.5
)
Consumer:
Indirect
477.5
540.3
607.1
680.2
725.0
(11.6
)
(34.1
)
Direct
131.5
134.3
134.4
132.4
134.0
(2.1
)
(1.9
)
Credit card
—
—
—
74.2
77.6
—
(100.0
)
Total consumer
609.0
674.6
741.5
886.8
936.6
(9.7
)
(35.0
)
Commercial
2,359.6
2,447.4
2,529.9
2,770.6
2,829.4
(3.6
)
(16.6
)
Agricultural
520.2
495.5
541.4
595.8
687.9
5.0
(24.4
)
Other
1.7
10.2
2.0
1.8
1.6
(83.3
)
6.3
Deferred loan fees and costs
(8.3
)
(9.5
)
(10.0
)
(10.6
)
(11.1
)
(12.6
)
(25.2
)
Loans held for investment
$
15,201.6
$
15,834.4
$
16,353.4
$
17,377.3
$
17,844.9
(4.0
)%
(14.8
)%
Deposits:
Noninterest bearing
$
5,286.8
$
5,555.7
$
5,579.0
$
5,590.2
$
5,797.6
(4.8
)%
(8.8
)%
Interest bearing:
Demand
6,319.7
6,324.7
6,465.4
6,439.2
6,495.2
(0.1
)
(2.7
)
Savings
7,843.5
7,954.0
7,789.6
7,876.4
7,832.3
(1.4
)
0.1
Time, $250 thousand and over
792.9
851.1
837.3
823.4
825.0
(6.8
)
(3.9
)
Time, other
1,845.4
1,919.5
1,959.3
2,003.6
2,065.5
(3.9
)
(10.7
)
Total interest bearing
16,801.5
17,049.3
17,051.6
17,142.6
17,218.0
(1.5
)
(2.4
)
Total deposits
$
22,088.3
$
22,605.0
$
22,630.6
$
22,732.8
$
23,015.6
(2.3
)%
(4.0
)%
Total core deposits (1)
$
21,295.4
$
21,753.9
$
21,793.3
$
21,909.4
$
22,190.6
(2.1
)%
(4.0
)%
(1) Core deposits are defined as total deposits less time deposits, $250 thousand and over, and brokered deposits.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Credit Quality
(Unaudited)
% Change
(In millions, except %)
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Dec 31,
2024
4Q25 vs 3Q25
4Q25 vs 4Q24
Allowance for Credit Losses:
Allowance for credit losses
$
191.4
$
205.8
$
209.6
$
215.3
$
204.1
(7.0
)%
(6.2
)%
As a percentage of loans held for investment
1.26
%
1.30
%
1.28
%
1.24
%
1.14
%
As a percentage of non-accrual loans
143.37
113.33
108.77
112.19
147.58
Net loan charge-offs during quarter
$
22.1
$
2.3
$
5.8
$
9.0
$
55.2
860.9
%
(60.0
)%
Annualized as a percentage of average loans
0.56
%
0.06
%
0.14
%
0.21
%
1.22
%
Non-Performing Assets:
Non-accrual loans
$
133.5
$
181.6
$
192.7
$
191.9
$
138.3
(26.5
)%
(3.5
)%
Accruing loans past due 90 days or more
1.4
0.6
1.4
3.0
3.0
133.3
(53.3
)
Total non-performing loans
134.9
182.2
194.1
194.9
141.3
(26.0
)
(4.5
)
Other real estate owned
3.4
3.4
3.4
3.5
4.3
—
(20.9
)
Total non-performing assets
$
138.3
$
185.6
$
197.5
$
198.4
$
145.6
(25.5
)%
(5.0
)%
Non-performing assets as a percentage of:
Loans held for investment and OREO
0.91
%
1.17
%
1.21
%
1.14
%
0.82
%
Total assets
0.52
0.68
0.72
0.70
0.50
Non-accrual loans to loans held for investment
0.88
1.15
1.18
1.10
0.78
Allowance for credit losses coverage of non-performing loans
141.88
112.95
107.99
110.47
144.44
Accruing Loans 30-89 Days Past Due
$
82.7
$
28.5
$
52.2
$
90.2
$
63.5
190.2
%
30.2
%
Criticized Loans:
Special Mention
$
566.3
$
697.5
$
744.9
$
543.6
$
316.4
(18.8
)%
79.0
%
Substandard
441.4
416.9
427.8
469.5
434.8
5.9
1.5
Doubtful
44.1
49.7
30.3
13.0
22.1
(11.3
)
99.5
Total
$
1,051.8
$
1,164.1
$
1,203.0
$
1,026.1
$
773.3
(9.6
)%
36.0
%
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Selected Ratios - Annualized
(Unaudited)
At or for the Quarter ended:
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Dec 31,
2024
Annualized Financial Ratios (GAAP)
Return on average assets
1.60
%
1.04
%
1.03
%
0.71
%
0.70
%
Return on average common stockholders' equity
12.40
8.22
8.46
6.07
6.22
Yield on average earning assets
4.67
4.73
4.76
4.75
4.86
Cost of average interest bearing liabilities
1.77
1.90
1.95
2.05
2.23
Interest rate spread
2.90
2.83
2.81
2.70
2.63
Efficiency ratio
52.17
61.68
61.10
63.64
60.20
Loans held for investment to deposit ratio
68.82
70.05
72.26
76.44
77.53
Annualized Financial Ratios - Operating** (Non-GAAP)
Net FTE interest margin ratio
3.38
%
3.36
%
3.32
%
3.22
%
3.20
%
Tangible book value per common share
$
22.40
$
21.77
$
21.29
$
20.67
$
20.16
Tangible common stockholders' equity to tangible assets
8.90
%
8.66
%
8.47
%
8.01
%
7.55
%
Return on average tangible common stockholders' equity
18.79
12.53
13.01
9.42
9.71
Consolidated Capital Ratios
Total risk-based capital to total risk-weighted assets
17.06
%
*
16.62
%
16.49
%
14.93
%
14.38
%
Tier 1 risk-based capital to total risk-weighted assets
14.38
*
13.90
13.43
12.53
12.16
Tier 1 common capital to total risk-weighted assets
14.38
*
13.90
13.43
12.53
12.16
Leverage Ratio
9.61
*
9.60
9.37
9.06
8.71
*Preliminary estimate - may be subject to change. The regulatory capital ratios presented include the assumption of the transitional method as a result of legislation by the United States Congress to provide relief for the economy and financial institutions in the United States from the COVID-19 pandemic. The referenced relief ended on December 31, 2024, which allowed a total five-year phase-in of the impact of CECL on capital.
**Non-GAAP financial measures - see “Non-GAAP Financial Measures” included herein for a reconciliation of net interest margin to net FTE interest margin ratio, book value per common share to tangible book value per common share, return on average common stockholders’ equity (GAAP) to return on average tangible common stockholders’ equity, and tangible common stockholders’ equity to tangible assets (non-GAAP).
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Selected Ratios - Annualized
(Unaudited)
At or for the Year ended:
Dec 31,
2025
Dec 31,
2024
Financial Ratios (GAAP)
Return on average assets
1.09
%
0.75
%
Return on average common stockholders' equity
8.83
6.92
Yield on average earning assets
4.73
4.81
Cost of average interest bearing liabilities
1.92
2.35
Interest rate spread
2.81
2.46
Efficiency ratio
59.19
62.30
Financial Ratios - Operating** (Non-GAAP)
Net FTE interest margin ratio
3.32
3.04
Return on average tangible common stockholders' equity
13.53
10.95
**Non-GAAP financial measures - see Non-GAAP Financial Measures included herein for a reconciliation of net interest margin to net FTE interest margin and return on average common stockholders’ equity (GAAP) to return on average tangible common stockholders’ equity (non-GAAP).
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Average Balance Sheets
(Unaudited)
Three Months Ended
December 31, 2025
September 30, 2025
December 31, 2024
(In millions, except %)
Average
Balance
Interest(3)
Average
Rate
Average
Balance
Interest(3)
Average
Rate
Average
Balance
Interest(3)
Average
Rate
Interest earning assets:
Loans (1)
$
15,540.5
$
222.0
5.67
%
$
16,419.0
$
235.0
5.68
%
$
17,977.7
$
259.9
5.75
%
Investment securities
Taxable (2)
7,355.2
50.7
2.73
7,144.7
47.8
2.65
7,804.1
56.0
2.85
Tax-exempt
178.7
0.9
2.00
180.0
0.9
1.98
183.8
0.8
1.73
Investment in FHLB and FRB stock
106.7
1.1
4.09
107.9
1.3
4.78
155.7
2.4
6.13
Interest bearing deposits in banks
1,177.0
11.8
3.98
737.8
8.4
4.52
690.2
8.3
4.78
Federal funds sold
0.1
—
—
0.1
—
—
0.1
—
—
Total interest earning assets
$
24,358.2
$
286.5
4.67
%
$
24,589.5
$
293.4
4.73
%
$
26,811.6
$
327.4
4.86
%
Noninterest earning assets
2,668.6
2,702.9
2,807.3
Total assets
$
27,026.8
$
27,292.4
$
29,618.9
Interest bearing liabilities:
Demand deposits
$
6,316.6
$
14.9
0.94
%
$
6,326.4
$
15.7
0.98
%
$
6,449.7
$
15.9
0.98
%
Savings deposits
7,882.6
35.7
1.80
7,841.2
37.8
1.91
7,833.6
39.1
1.99
Time deposits
2,685.8
21.9
3.24
2,782.1
23.4
3.34
2,877.8
26.7
3.69
Repurchase agreements
496.4
1.2
0.96
490.8
1.2
0.97
529.4
1.1
0.83
Other borrowed funds
—
—
—
23.0
0.4
6.90
1,942.6
24.0
4.91
Long-term debt
146.3
2.5
6.78
201.1
3.8
7.50
135.0
1.5
4.42
Subordinated debentures held by subsidiary trusts
150.8
2.6
6.84
163.1
2.9
7.05
163.1
3.2
7.81
Total interest bearing liabilities
$
17,678.5
$
78.8
1.77
%
$
17,827.7
$
85.2
1.90
%
$
19,931.2
$
111.5
2.23
%
Noninterest bearing deposits
5,424.3
5,548.7
5,899.8
Other noninterest bearing liabilities
442.7
468.2
455.8
Stockholders’ equity
3,481.3
3,447.8
3,332.1
Total liabilities and stockholders’ equity
$
27,026.8
$
27,292.4
$
29,618.9
Net FTE interest income (non-GAAP)(4)
$
207.7
$
208.2
$
215.9
Less FTE adjustments (3)
(1.3
)
(1.4
)
(1.6
)
Net interest income from consolidated statements of income
$
206.4
$
206.8
$
214.3
Interest rate spread
2.90
%
2.83
%
2.63
%
Net interest margin
3.36
3.34
3.18
Net FTE interest margin ratio (non-GAAP)(4)
3.38
3.36
3.20
Cost of funds, including noninterest bearing demand deposits (5)
1.35
1.45
1.72
(1)
Average loan balances include loans held for sale and loans held for investment, net of deferred fees and costs, which include non-accrual loans. Interest income includes amortization of deferred loan fees net of deferred loan costs, which is not material for the periods presented.
(2)
Includes average balance of unsettled trades on investment securities.
(3)
Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax exempt loans and securities to an FTE basis utilizing a 21% tax rate.
(4)
Non-GAAP financial measure - see “Non-GAAP Financial Measures” included herein for a reconciliation to GAAP measures.
(5)
Calculated by dividing total annualized interest on interest bearing liabilities by the sum of total interest bearing liabilities plus noninterest bearing deposits.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Average Balance Sheets
(Unaudited)
Year Ended December 31,
2025
2024
(In millions, except %)
Average
Balance
Interest(3)
Average
Rate
Average
Balance
Interest(3)
Average
Rate
Interest earning assets:
Loans (1)
$
16,663.9
$
940.7
5.65
%
$
18,182.0
$
1,028.2
5.66
%
Investment securities
Taxable
7,303.9
199.4
2.73
8,261.5
243.5
2.95
Tax-exempt
180.8
3.5
1.94
186.5
3.4
1.82
Investment in FHLB and FRB stock
132.2
7.4
5.60
178.8
11.8
6.60
Interest bearing deposits in banks
759.9
32.7
4.30
422.5
22.2
5.25
Federal funds sold
0.1
—
—
0.1
—
—
Total interest earning assets
$
25,040.8
$
1,183.7
4.73
%
$
27,231.4
$
1,309.1
4.81
%
Noninterest earning assets
2,712.1
2,825.0
Total assets
$
27,752.9
$
30,056.4
Interest bearing liabilities:
Demand deposits
$
6,364.3
$
60.0
0.94
%
$
6,224.9
$
57.8
0.93
%
Savings deposits
7,831.6
145.8
1.86
7,784.8
161.2
2.07
Time deposits
2,783.7
94.0
3.38
2,894.1
106.9
3.69
Repurchase agreements
509.3
4.7
0.92
687.2
6.7
0.97
Other borrowed funds
563.5
26.2
4.65
2,434.7
123.4
5.07
Long-term debt
159.6
10.7
6.70
253.4
11.8
4.66
Subordinated debentures held by subsidiary trusts
160.0
11.2
7.00
163.1
13.1
8.03
Total interest bearing liabilities
$
18,372.0
$
352.6
1.92
%
$
20,442.2
$
480.9
2.35
%
Noninterest bearing deposits
5,535.2
5,879.4
Other noninterest bearing liabilities
423.9
468.8
Stockholders’ equity
3,421.8
3,266.0
Total liabilities and stockholders’ equity
$
27,752.9
$
30,056.4
Net FTE interest income (non-GAAP)(3)
$
831.1
$
828.2
Less FTE adjustments (2)
(5.7
)
(6.6
)
Net interest income from consolidated statements of income
$
825.4
$
821.6
Interest rate spread
2.81
%
2.46
%
Net interest margin
3.30
3.12
Net FTE interest margin (3)
3.32
3.04
Cost of funds, including noninterest bearing demand deposits (4)
1.47
1.83
(1)
Average loan balances include loans held for sale and loans held for investment, net of deferred fees and costs, which include non-accrual loans. Interest income includes amortization of deferred loan fees net of deferred loan costs, which is not material for the periods presented.
(2)
Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax exempt loans and securities to an FTE basis utilizing a 21.00% tax rate.
(3)
Non-GAAP financial measure - see Non-GAAP Financial Measures included herein for a reconciliation to GAAP measures.
(4)
Calculated by dividing total annualized interest on interest bearing liabilities by the sum of total interest bearing liabilities plus noninterest bearing deposits.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(Unaudited)
As of or For the Quarter Ended
(In millions, except % and per share data)
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
Total common stockholders' equity (GAAP)
(A)
$
3,447.0
$
3,448.7
$
3,421.8
$
3,361.3
$
3,304.0
Less goodwill and other intangible assets (excluding mortgage servicing rights)
1,182.2
1,185.5
1,188.9
1,192.4
1,195.7
Tangible common stockholders' equity (Non-GAAP)
(B)
$
2,264.8
$
2,263.2
$
2,232.9
$
2,168.9
$
2,108.3
Total assets (GAAP)
$
26,640.6
$
27,332.9
$
27,566.4
$
28,279.8
$
29,137.4
Less goodwill and other intangible assets (excluding mortgage servicing rights)
1,182.2
1,185.5
1,188.9
1,192.4
1,195.7
Tangible assets (Non-GAAP)
(C)
$
25,458.4
$
26,147.4
$
26,377.5
$
27,087.4
$
27,941.7
Average Balances:
Total common stockholders' equity (GAAP)
(D)
$
3,481.3
$
3,447.8
$
3,401.1
$
3,355.1
$
3,332.1
Less goodwill and other intangible assets (excluding mortgage servicing rights)
1,183.7
1,187.1
1,190.5
1,193.9
1,197.4
Average tangible common stockholders' equity (Non-GAAP)
(E)
$
2,297.6
$
2,260.7
$
2,210.6
$
2,161.2
$
2,134.7
Net interest income
(F)
$
206.4
$
206.8
$
207.2
$
205.0
$
214.3
FTE interest income
1.3
1.4
1.4
1.6
1.6
Net FTE interest income (Non-GAAP)
(G)
207.7
208.2
208.6
206.6
215.9
Less purchase accounting accretion
2.6
3.5
4.2
4.7
8.6
Adjusted net FTE interest income (Non-GAAP)
(H)
$
205.1
$
204.7
$
204.4
$
201.9
$
207.3
Average interest earning assets
(I)
$
24,358.2
$
24,589.5
$
25,180.1
$
26,059.0
$
26,811.6
Total quarterly average assets
(J)
27,026.8
27,292.4
27,898.4
28,818.9
29,618.9
Annualized net income available to common shareholders
(K)
431.7
283.3
287.6
203.6
207.3
Common shares outstanding
(L)
101,106
103,967
104,874
104,910
104,586
Return on average assets (GAAP)
(K) / (J)
1.60
%
1.04
%
1.03
%
0.71
%
0.70
%
Return on average common stockholders' equity (GAAP)
(K) / (D)
12.40
8.22
8.46
6.07
6.22
Average common stockholders' equity to average assets (GAAP)
(D) / (J)
12.88
12.63
12.19
11.64
11.25
Book value per common share (GAAP)
(A) / (L)
$
34.09
$
33.17
$
32.63
$
32.04
$
31.59
Tangible book value per common share (Non-GAAP)
(B) / (L)
22.40
21.77
21.29
20.67
20.16
Tangible common stockholders' equity to tangible assets (Non-GAAP)
(B) / (C)
8.90
%
8.66
%
8.47
%
8.01
%
7.55
%
Return on average tangible common stockholders' equity (Non-GAAP)
(K) / (E)
18.79
12.53
13.01
9.42
9.71
Net interest margin (GAAP)
(F*) / (I)
3.36
3.34
3.30
3.19
3.18
Net FTE interest margin ratio (Non-GAAP)
(G*) / (I)
3.38
3.36
3.32
3.22
3.20
Adjusted net FTE interest margin ratio (Non-GAAP)
(H*) / (I)
3.34
3.30
3.26
3.14
3.08
*Annualized
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(Unaudited)
For the Year Ended
(In millions, except % and per share data)
Dec 31, 2025
Dec 31, 2024
Average Balances:
Total common stockholders' equity (GAAP)
(A)
$
3,421.8
$
3,266.0
Less goodwill and other intangible assets (excluding mortgage servicing rights)
1,188.8
1,202.8
Average tangible common stockholders' equity (Non-GAAP)
(B)
$
2,233.0
$
2,063.2
Net interest income
(C)
$
825.4
$
821.6
FTE interest income
5.7
6.6
Net FTE interest income
(D)
831.1
828.2
Less: Purchase accounting accretion
15.0
24.6
Adjusted net interest income (FTE)
(E)
$
816.1
$
803.6
Average interest earning assets
(F)
$
25,040.8
$
27,231.4
Total average assets
(G)
27,752.9
30,056.4
Net income available to common shareholders
(H)
302.1
226.0
Return on average assets (GAAP)
(H) / (G)
1.09
%
0.75
%
Return on average common stockholders' equity (GAAP)
(H) / (A)
8.83
6.92
Average common stockholders' equity to average assets (GAAP)
(A) / (G)
12.33
10.87
Return on average tangible common stockholders' equity (Non-GAAP)
(H) / (B)
13.53
10.95
Net interest margin (GAAP)
(C) / (F)
3.30
3.02
Net interest margin (FTE) (Non-GAAP)
(D) / (F)
3.32
3.04
Adjusted net interest margin (FTE) (Non-GAAP)
(E) / (F)
3.26
2.95
View source version on businesswire.com: https://www.businesswire.com/news/home/20260128455293/en/
David P. Della Camera, CFA
Chief Financial Officer
First Interstate BancSystem, Inc.
(406) 255-5363
investor.relations@fib.com
NASDAQ: FIBK
www.FIBK.com
(FIBK-ER)
Original: First Interstate BancSystem, Inc. Reports Fourth Quarter Earnings
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