First Interstate BancSystem (FIBK) Q4 2025 earnings summary

Executive summary

• Q4 2025 net income was $108.8 million ($1.08 per share), up from $71.4 million in Q3, with a net interest margin of 3.36% and an efficiency ratio of 52.2%.

• Strategic focus included improving core profitability, optimizing the balance sheet, and refocusing capital investment, with significant branch sales and closures in Arizona, Kansas, Nebraska, North Dakota, and Minnesota.

• Initiated a flatter organizational structure to accelerate decision-making and support organic growth, with new leadership and talent additions.

• Maintains a robust capital position, with CET1 at 14.38% and total risk-based capital at 17.06%.

• Full-year 2025 net income reached $302.1 million ($2.94 per share), compared to $226.0 million ($2.19 per share) in 2024.

Financial highlights

• Net interest income for Q4 2025 was $206.4 million, down 0.2% sequentially and 3.7% year-over-year, with adjusted FTE NIM at 3.34%.

• Noninterest income surged to $106.6 million in Q4 2025, mainly due to a $62.7 million gain from branch sales.

• Noninterest expense was $166.7 million, including $4.2 million in severance and $2.3 million in branch closure costs.

• Total assets at year-end were $26.6 billion, with deposits at $22.1 billion and loans held for investment at $15.2 billion.

• Dividend declared at $0.47 per share, 5.7% annualized yield.

Outlook and guidance

• 2026 guidance anticipates ending deposits between $22.0–$22.5 billion and loans between $14.5–$15.0 billion, excluding the impact of the Nebraska branch sale.

• Full-year 2026 net interest income expected between $825–$845 million, with continued margin expansion and two anticipated 25bps rate cuts.

• Expects sequential net interest margin improvement, targeting above 3.5% by year-end 2026.

• Noninterest income projected at $170–$175 million, and noninterest expense at $630–$645 million for 2026.

• Expenses projected to be flat to slightly lower in 2026, with a 1% increase due to medical insurance normalization.