First Interstate BancSystem (FIBK) investor relations material

Executive summary

• Net income for Q2 2025 was $71.7 million ($0.69 per diluted share), up 42.8% sequentially and 19.5% year-over-year, supported by lower provision for credit losses and higher net interest income.

• Net interest margin rose to 3.30% (up 11-12 bps sequentially), with adjusted FTE NIM at 3.26%.

• Loans held for investment declined by $1.02 billion, mainly due to branch sales, credit card outsourcing, and indirect lending runoff.

• Completed outsourcing and sale of consumer credit card portfolio, recognizing a $4.3 million gain.

• Capital ratios remain strong, with CET1 at 13.43% and total risk-based capital at 16.49%.

Financial highlights

• Net interest income was $207.2 million, up from $201.7 million year-over-year, driven by reduced interest expense and lower borrowings.

• Noninterest income was $41.1 million, including a $7.3 million valuation allowance and a $4.3 million gain from the credit card portfolio sale.

• Noninterest expense declined to $155.1 million, down $5.5 million sequentially and $1.8 million year-over-year.

• Provision for credit losses was a $0.3 million reduction, compared to $9.0 million expense in Q2 2024.

• Dividend of $0.47 per share declared, yielding 7.0%.

Outlook and guidance

• Management expects continued focus on organic growth, expense management, and relationship banking to drive profitability.

• 2025 guidance: flat to low single-digit deposit growth, loans projected to decline 6-8% excluding indirect lending runoff, and full-year net interest income up 2-3% over 2024.

• Q4 NIM (ex-purchase accretion) targeted at ~3.4%; high single-digit net interest income growth anticipated in 2026.

• Noninterest expense guidance reduced to flat to up 1% for 2025.

• Net charge-offs for 2025 anticipated between 20-30 bps; effective tax rate projected at 23.5%-24.0%.