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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FIBK

FIBK fundamentals

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