First Interstate BancSystem (FIBK) investor relations material

Executive summary

• Q3 net income was $62.2 million, or $0.65 per diluted share, versus $83.9 million and $0.87 in Q2; Q2 included a $19.5 million Nebraska branch-sale gain.

• Multi-year strategy emphasizes relationship banking, core deposit growth, geographic realignment, branch optimization and stronger long-term earnings power.

• NIM expanded for a 10th consecutive quarter; non-interest-bearing deposits grew for a second consecutive quarter, adjusted for sold deposits.

• Rocky Mountain client acquisition was strong, with commercial production improving YoY and growth concentrated among relationship-based clients.

Financial highlights

• Net interest income was $206.2 million, up $4.0 million QoQ; FTE net interest income was $207.3 million, with adjusted FTE NII of $204.9 million excluding loan purchase-accounting accretion.

• Noninterest income was $43.3 million, down $18.4 million QoQ, primarily reflecting the prior-quarter $19.5 million Nebraska branch-sale gain; noninterest expense was $157.1 million.

• Loans held for investment declined $296.0 million QoQ to $13.99 billion; deposits fell $52.8 million, or 0.2%, to $21.4 billion, but rose QoQ excluding a large collateralized deposit exit.

• Net charge-offs were $9.9 million, or 28 bps of average loans; provision for credit losses was $10.5 million, reflecting charge-offs and higher funded and unfunded allowances.

• Assets were $25.77 billion, down 0.4% QoQ and 5.7% YoY; loans held for investment declined 2.1% QoQ and 11.7% YoY.

Outlook and guidance

• FY 2026 reported NII guidance is $814 million–$819 million, assuming continued Q4 margin expansion and one additional rate increase.

• Q4 NII guidance midpoint implies expansion from Q3, supported by asset repricing, stabilized earning assets and non-interest-bearing deposit performance; expected margin benefit is smaller than Q3.

• Year-end deposits are expected at $21.4 billion–$21.8 billion and loans at $13.5 billion–$13.8 billion; loan outlook assumes elevated payoffs and weak mortgage production, partly offset by improved commercial production.

• FY 2026 noninterest income guidance is $167 million–$170 million, excluding the Nebraska branch-sale gain; expense guidance is $629 million–$635 million, and the effective tax rate is 22.75%–23%.

• No 2027 guidance was issued; fixed-asset repricing, investment cash flows and stable or modestly growing low-cost core deposits were cited as future NII supports. Two Colorado branches are planned for H1 2027.