First Interstate BancSystem (FIBK) Q4 2025 earnings summary

Executive summary

• Q4 2025 net income was $108.8 million ($1.08 per diluted share), up from $71.4 million in Q3 2025 and $52.1 million in Q4 2024, with a net interest margin of 3.36% and efficiency ratio of 52.2%.

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

• Achieved progress in core profitability, capital investment refocus, and balance sheet optimization, including significant branch divestitures and business line exits.

• Completed sale of Arizona and Kansas branches, generating a $62.7 million gain in Q4 2025; announced further sales and closures in Nebraska, North Dakota, and Minnesota, consolidating footprint to 10 contiguous states.

• Initiated a flatter banking organization structure, elevating internal talent and adding select external hires to drive organic growth.

Financial highlights

• Net interest income for Q4 2025 was $206.4 million, down 0.2% sequentially and 3.7% year-over-year; 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.

• Tangible book value per share increased to $22.40 in Q4 2025.

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

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.

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

• Expenses projected at $630–$645 million for 2026, with a 1% increase due to normalization in medical insurance.

• Optimism for modest loan growth in the back half of 2026, with continued discipline in credit and capital allocation.

• Effective tax rate expected to be 23.0%–24.0% for 2026.