First Interstate BancSystem (FIBK) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $71.4 million ($0.69 per diluted share), flat sequentially and up 28.6% year-over-year, with a net interest margin of 3.34% and a focus on organic growth, cost management, and capital deployment, including share repurchases and a 6.0% annualized dividend yield.

• Completed divestitures in Arizona and Kansas, announced sale of 11 Nebraska branches, and planned further branch closures to optimize network and improve market density.

• Loans held for investment decreased by $519 million, and deposits decreased by $25.6 million from Q2 2025, with strong liquidity and capital position maintained (loan-to-deposit ratio 70.1%, CET1 ratio 13.90%).

• Share repurchase program initiated, with 1.8 million shares repurchased for $57.2 million since August 2025.

• Quarterly cash dividend of $0.47 per share declared, annualized yield of 6.0%.

Financial highlights

• Q3 2025 net income was $71.4 million ($0.69 per diluted share), nearly flat compared to Q2 2025 and up from $55.5 million in Q3 2024.

• Net interest income was $206.8 million, down $0.4 million sequentially but up $1.3 million year-over-year; net interest margin rose to 3.34%.

• Noninterest income was $43.7 million, up $2.6 million from Q2 but down 5.8% year-over-year; noninterest expense was $157.9 million, up $2.8 million sequentially and down 0.9% year-over-year.

• Efficiency ratio improved to 61.7% for Q3 2025.

• Allowance for credit losses was $205.8 million (1.30% of loans), with net charge-offs at $2.3 million (0.06% of average loans).

Outlook and guidance

• Q4 2025 guidance: deposits expected modestly over $22 billion, loans around $15.5 billion, net interest income $203–$205 million, noninterest income $42–$44 million, and noninterest expense $155–$157 million.

• Expecting a $60 million pre-tax gain in Q4 2025 from the Arizona and Kansas divestiture.

• Anticipates mid single-digit net interest income growth in 2026, with low single-digit expense growth and improved operating leverage.

• Guidance includes sequential NII improvement through 2026 and 2027, with Q1 typically being a seasonally lower period.

• Long-term net charge-offs expected between 20–30 basis points; effective tax rate for 2025 expected at 23.5–24.0%.