What factors drove the changes in First Interstate's revenue and profit?

What is the revenue and EPS growth rate for First Interstate year over year?

What were the key takeaways from First Interstate’s earnings call?

What guidance did First Interstate's management provide for the next earnings period?

What is the market's earnings forecast for First Interstate next quarter?

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What is First Interstate's latest dividend and current dividend yield?

What were the key takeaways from First Interstate's earnings call?

- **Strategic Restructuring**: Reduced footprint to 10 states, sold 11 Nebraska branches, and relocated a Wyoming branch. Authorized $300M buybacks, with $118M executed in 2025.
- **Credit Improvement**: Criticized loans down 9.6%, non-performing assets down 26%, and net charge-offs at 24 basis points of average loans for 2025.
- **Financial Performance**: Q4 net income $108.8M ($1.08 EPS), FTE margin 3.38%, and non-interest income boosted by $62.7M gain from branch sale.
- **2026 Outlook**: Targeting sequential margin expansion to north of 3.5%, flat to modest loan growth, and flat to slightly lower expenses. Optimistic for second-half loan growth and disciplined credit management.

**【CEO Summary Section】**
- **Strategic Restructuring**: Announced branch divestitures in Arizona, Kansas, Nebraska, and Minnesota, reducing the footprint to 10 contiguous states. Sold 11 Nebraska branches and consolidated 4 others, with 29 remaining post-closure. Relocated a Wyoming branch for better customer access.
- **Share Repurchase**: Authorized $300 million in buybacks, with $118 million executed in 2025. Emphasized capital allocation priority for EPS growth.
- **Credit Quality Improvement**: Criticized loans decreased by $112.3 million (9.6%), non-performing assets down 26%, and net charge-offs at 24 basis points of average loans for 2025.
- **Organic Growth Focus**: New commercial banking team in Colorado, branch openings in Montana, and a flatter organizational structure to accelerate decision-making and relationship-building.
- **2026 Outlook**: Optimistic for loan growth in the second half, driven by organizational changes and disciplined credit management.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Net income $108.8 million ($1.08 EPS), up from $71.4 million ($0.69 EPS) in Q3. NII $206.4 million, down 3.7% YoY due to asset reduction. Non-interest income $106.6 million, boosted by $62.7 million gain from Arizona/Kansas branch sale.
- **Margin Trends**: FTE net interest margin 3.38%, up 4 basis points QoQ (3.34% excluding purchase accounting). Guidance for sequential margin improvement in 2026, targeting north of 3.5%.
- **Expense Management**: Q4 expenses $166.7 million, up 5.6% QoQ due to severance and incentive accruals. 2026 guidance for flat to slightly lower expenses, with reinvestment in growth initiatives.
- **Balance Sheet**: Loans down $632.8 million Q4, driven by run-off and sales. Deposits $22.1 billion, excluding sold branches. Loan-to-deposit ratio 68.8%, down from 77.5% YoY.
- **Capital Strength**: CET1 ratio 14.38%, up 48 basis points QoQ. Dividend yield 5.7% annualized. Buyback authorization increased to $300 million, with $180 million remaining.

**【Q&A Highlights】**
- **Loan Growth Challenges**: 2025 loan decline due to run-off and competition, but Q4 production improved. 2026 guidance for flat to modest growth, with second-half acceleration.
- **Margin Expansion**: Sequential improvement expected, driven by loan repricing and reinvestment of lower-yielding securities. 2026 target for FTE margin north of 3.5%.
- **Credit Quality**: Criticized loans stabilized, but variability expected. Long-term charge-off guidance 20-30 basis points.
- **Expense Cadence**: 2026 expenses flat to slightly lower, with normalization of medical costs and reinvestment in growth.
- **Buyback Activity**: Intends to maintain active buyback pace, prioritizing capital return over balance sheet growth.

First Interstate BancSystem, Inc. (FIBK) Q4 2025 Earnings Call Transcript

- **Strategic Restructuring**: Sold 11 Nebraska branches and closed 4 underperforming branches, generating $60M pretax gain.
- **Credit Improvement**: Criticized loans down 3.2%, net charge-offs at 6bps, with largest criticized loan paid off.
- **Capital Action**: $150M share buyback underway, with 1.8M shares repurchased (1.7% of outstanding).
- **2026 Outlook**: Guided to mid-single-digit NII growth, driven by balance sheet repricing and disciplined loan growth.

**【CEO Opening Remarks】**
- Announced the sale of 11 Nebraska branches and closure of 4 Eastern Nebraska branches to optimize branch network density.
- Reported $519 million decline in loans due to intentional runoff of nonrelationship loans and strategic lending discipline.
- Highlighted credit stabilization with criticized loans decreasing by $38.9 million (3.2%) and net charge-offs at 6 basis points.
- Discussed organic growth focus in high-density markets like Colorado and Montana, including new branch openings in 2026.

**【CFO Financial Commentary】**
- Q3 net income: $71.4 million ($0.69 EPS), flat vs. prior quarter.
- Net interest income: $206.8 million (-$0.4M QoQ, +$1.3M YoY).
- Adjusted FTE net interest margin: 3.30% (+4bps QoQ).
- Noninterest income: $43.7 million (+$2.6M QoQ).
- Noninterest expense: $57.9 million (+$2.8M QoQ) due to branch divestiture costs.
- CET1 capital ratio: 13.9% (+47bps QoQ).
- Announced $60 million pretax gain from Arizona/Kansas divestiture, with $6M annual NII impact.

**【Q&A Highlights】**
- **Loan Growth Outlook**: CEO expects 2026 loan growth through disciplined C&I and CRE origination, despite 2025 headwinds from higher payoff activity.
- **Capital Allocation**: $150M share buyback program underway; 1.8M shares repurchased (1.7% of outstanding) through October 28.
- **Credit Quality**: 20-30bps long-term charge-off guidance maintained; largest criticized loan ($50M+) paid off in October.
- **Deposit Beta**: CFO anticipates 31% beta on future rate cuts, with 12-month lag due to CD repricing.
- **NII Guidance**: Mid-single-digit growth in 2026 assuming flat loans, driven by balance sheet repricing and lower funding costs.

First Interstate BancSystem, Inc. (FIBK) Q3 2025 Earnings Call Transcript

- **Strategic Restructuring**: Reduced loans by $1B through exits and payoffs, focusing on 93% of deposits in top-10 markets.
- **Profitability Boost**: Q2 net income up 43% to $71.7M, with NIM improving 12bps to 3.26% (ex-purchase accretion).
- **Expense Control**: Noninterest expense down 3% YoY, guided to flat 2025 growth vs. prior 2-4% range.
- **2026 Outlook**: High single-digit NII growth expected, driven by margin expansion and flat loans.
- **Credit Stability**: NCOs at 14bps, criticized loans up 17% but backed by strong collateral.

**【CEO Summary Section】**
- **Strategic Refocusing**: CEO Jim Reuter highlighted efforts to stop new originations, exit non-core markets (Arizona, Kansas), and outsource consumer credit cards, reducing loan balances by $1B. 
- **Core Market Growth**: Emphasized strong market share in 93% of deposits (top 10 in key markets) and 70% in faster-growing regions. Opened 1 new branch in Montana.
- **Profitability Focus**: Targeted expense control, with noninterest expense down $5.5M Q/Q, and plans to reinvest savings into organic growth.
- **Credit Management**: Maintained stable asset quality with NCOs at 14bps, though criticized loans rose 17% due to multifamily lease-up delays.

**【CFO Financial Commentary】**
- **Q2 Results**: Net income $71.7M ($0.69 EPS), up 43% vs. Q1. NIM 3.32% (3.26% ex-purchase accretion), +12bps Q/Q. 
- **Balance Sheet**: Loans held for investment down $1B (12% YoY), deposits flat YoY. LTV ratio 72%, CET1 13.43%.
- **Expense Control**: Noninterest expense $155.1M (-3% YoY), guided to 0-1% full year growth vs. prior 2-4% range.
- **2026 Outlook**: Anticipates high single-digit NII growth driven by margin expansion, assuming flat loans.

**【Q&A Highlights】**
- **Loan Stabilization**: Expect loans to bottom in Q3, stabilize in Q4, with 2026 growth driven by C&I and owner-occupied CRE. 
- **Expense Management**: Q3 expenses may rise due to seasonality, but 2025 guidance tightened to 0-1% growth. 
- **Capital Deployment**: CET1 expected to rise to ~14% post-branch sale, with options including buybacks or M&A. 
- **Credit Risks**: Criticized loans at 7.1% of loans, driven by multifamily delays, but collateral and guarantors remain strong.

First Interstate BancSystem (FIBK)-30 Jul 25-2025 Q2 Earnings call transcript

- **Strategic Shift to Growth**: Exiting 12 branches to focus on high-share markets, reducing loan runoff ($467.6M Q1) for 2026 organic C&amp;I expansion.
- **Credit Proactiveness**: Criticized loans up $252.8M, but 75% from multifamily guarantors. Nonperforming assets +$52.8M, but strong collateral coverage.
- **Financial Strength**: Net income $50.2M, NIM 3.22%, CET1 12.53%. 2025 NII +3.5-5.5M, 2026 flat loans + high single-digit growth.
- **Capital Flexibility**: Dividend priority, potential buybacks post-branch sale. 2026 net interest margin targeting 3.4-3.5% with asset repricing.


**【CEO Strategic Overview】**
- **Shift to Organic Growth**: Deemphasizing large M&A, focusing on full relationship banking, and optimizing branch network (average branch size $76M vs. peer average). Exiting 12 Arizona/Kansas branches to reinvest in high-share markets.
- **Credit Proactiveness**: Increased criticized loans ($252.8M Q1) due to multifamily lease-up delays and industrial warehouse pressures. Nonperforming assets rose $52.8M, but strong collateral and guarantor support.
- **Balance Sheet Management**: Loan runoff ($467.6M Q1) driven by low demand and strategic exits. Deposit decline ($282.8M) seasonal, but underlying trends improving. L/D ratio 76.4%.
- **Capital Flexibility**: CET1 12.53%, dividend priority. Exploring buybacks post-branch sale, with 2026 net interest income growth expected in high single-digits.

**【CFO Financial Highlights】**
- **Earnings**: Net income $50.2M ($0.49 EPS) vs. $52.1M prior quarter. NIM 3.22% (+2bps), excluding purchase accretion 3.14% (+6bps). Noninterest income $42M (-$5M due to seasonality).
- **Expense Control**: Noninterest expenses $160.6M (-$0.3M), including $1.4M severance. Guidance for 2025: 2-4% increase, excluding branch actions.
- **Credit Quality**: Net charge-offs $9M (21bps), provision $20M (1.24% of loans). CET1 improved 37bps to 12.53%.
- **Liquidity**: Borrowings down $607.5M Q1, L/D 76.4%. 2025 NII guidance: $3.5-5.5M increase, 2026 flat loans + high single-digit growth.

**【Q&A Key Themes】**
- **Credit Reset**: CEO emphasizes proactive management, with 2026 organic growth focus. 2025 loan runoff expected, but 2026 pipeline in C&amp;I/owner-occupied.
- **Capital Deployment**: Dividend priority, buybacks contingent on branch sale. 2025 NII momentum accelerates into 2026 with $1.5B investment cash flow.
- **Branch Optimization**: 2% TBV accretion from sale, 30-40bps CET1 boost. 2026 expense savings via mid-2s noninterest expense/deposit ratio.
- **Economic Sensitivity**: Rate cuts in guidance minimal impact. Asset repricing (2.5% investments, 4.3% loans) drives 2026 margin expansion to 3.4-3.5%.


First Interstate BancSystem (FIBK)-30 Apr 25-2025 Q1 Earnings call transcript

- **Strategic Pivot**: Bank exiting indirect lending (4% of loans) to focus on relationship banking, with $1B+ in annual runoff. 
- **Financial Resilience**: Q4 net income $52.1M, margin expanded 11bps to 3.08%. Deposit growth (+$151M) outpaced loan decline (-$182M). 
- **Credit Challenges**: $55M charge-offs, $160M increase in criticized assets, but 30%+ collateral coverage. 
- **2025 Outlook**: NII +5-7%, loans flat YoY, expenses +3-5%. Dividend policy stable with 12.16% CET1. 
- **Key Risk**: Concentration in 4 large CRE loans ($160M), but refinancing plans in place.

**【CEO Opening Remarks】**
- **Strategic Shift**: Announced discontinuation of indirect lending originations (4% of loan portfolio), focusing on relationship banking and organic growth. 
- **Market Focus**: Highlighted high-growth mid-sized markets with granular deposit base and strong community engagement. 
- **Team Confidence**: CEO Jim Reuter emphasized team talent and readiness to execute vision, with plans to share multi-year strategy at next earnings call.

**【CFO Financial Highlights】**
- **Q4 2024 Results**: Net income $52.1M ($0.50 EPS), down 6% YoY. NIM (ex purchase accretion) expanded 11bps to 3.08%. 
- **Deposit Growth**: +$151.5M QoQ, driven by low-cost checking campaigns. Borrowings reduced by $1B YoY, with BTFP fully paid off. 
- **Credit Quality**: Net charge-offs $55.2M, provision $33.7M. Criticized assets increased by $160M (4 loans), with 30%+ collateral coverage. 
- **Dividend Policy**: Maintained $0.47 quarterly dividend (5.8% yield), with CET1 ratio at 12.16%.

**【Deputy CFO Guidance】**
- **2025 Outlook**: 
  - **Assets**: Deposit growth low-single digits; loans flat YoY (indirect runoff offset by modest growth). 
  - **Income**: NII +5-7% YoY, driven by asset repricing and reduced borrowings. 
  - **Expenses**: Non-interest expense +3-5% YoY, including marketing spend for growth. 
  - **Credit**: Net charge-offs 20-30bps of loans.

**【Q&A Key Takeaways】**
- **Margin Dynamics**: Deposit beta lagged rate cuts, supporting margin expansion. 2025 guidance assumes 36% interest-bearing deposit beta. 
- **Credit Risk**: Criticized loans concentrated in 4 CRE deals (senior living, multi-family), with refinancing plans for 2 loans. 
- **Capital Allocation**: No buyback plans yet; M&A pace to slow. Dividend policy unchanged for now. 
- **Lending Strategy**: Shifting focus to small/mid businesses, reducing exposure to large non-relationship loans. Third-party credit review validates underwriting quality.


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