First Interstate BancSystem (FIBK) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $60.2 million ($0.61 per share), with continued net interest margin expansion and strong capital ratios, though down from Q4 2025 and up from Q1 2025.

• Completed a major redesign of the banking organization, streamlining structure and integrating top talent to enhance client experience and drive production, especially in key markets like Colorado.

• Maintains a robust liquidity position and diversified loan and deposit base, despite decreases in both due to branch sales and portfolio run-off.

• Ongoing investments in digital channels, data management, and AI to improve efficiency and customer experience.

• Continued branch network optimization and capital return to shareholders through dividends and share repurchases.

Financial highlights

• Net interest income was $200.7 million, down 2.8% sequentially and $4.3 million year-over-year, primarily due to fewer accrual days, lower deposits, and reduced asset yields.

• Net interest margin rose to 3.43%, up from 3.38% in Q4 and 3.22% in Q1 2025, marking the eighth consecutive quarter of expansion.

• Noninterest income was $41.1 million, down $65.5 million sequentially due to prior period branch sale gains and seasonality.

• Noninterest expense was $157.6 million, down $9.1 million from Q4, with an efficiency ratio of 63.8%.

• Loans decreased by $473.2 million, including declines in indirect and agricultural portfolios; deposits decreased by $205.3 million to $21.9 billion.

Outlook and guidance

• Guidance anticipates a further decline in loan balances in Q2, with stabilization and modest growth in the second half of 2026.

• Expect continued sequential net interest margin expansion through 2026 and into 2027, driven by loan repricing and amortization of lower-yielding securities.

• 2026 year-end deposits expected between $22.0–$22.5 billion; loans between $14.4–$14.9 billion.

• Full-year net interest income projected at $825–$845 million, with continued margin expansion.

• Noninterest income expected at $168–$173 million, excluding Nebraska branch sale gains.