On its third quarter of 2026 earnings call, held on Oct. 23, 2026, First Interstate BancSystem (FIBK -0.27%) announced third-quarter net income of $62.2 million. Maturing loans and securities are resetting at higher market interest rates, expanding earnings power without requiring rapid balance sheet growth. Three key takeaways from management explain the financial institution's strategy.
1. Asset Yields Boost Profit Spreads Across 10 Consecutive QuartersLoans and investment securities purchased in previous years are gradually resetting to higher market rates. This fixed asset repricing expands net interest margin -- the difference between interest earned on assets and paid on deposits -- without relying on volume expansion.
As Jim mentioned, this marks our 10th consecutive quarter of net interest margin expansion, and fixed asset repricing should remain a tailwind to earning asset yields and underlying margin improvement into 2027.
-- David P. Della Camera, Executive Vice President and Chief Financial Officer2. Pruning High-Cost Deposits Protects Profit MarginsManagement deliberately shed expensive customer deposits that failed to meet internal profitability targets. Removing these single-client balances lowers funding costs and stabilizes broader customer relationships.
Deposit costs benefited from the exit of a large, high-cost, fully collateralized customer where our long-term return objectives were not being met. Excluding this balance, deposits increased during the quarter.
-- David P. Della Camera, Executive Vice President and Chief Financial OfficerThe bank is using excess capital to buy back its own shares while commercial lending demand normalizes. Retiring 10 million shares over the past year increases each remaining shareholder's stake in future earnings.
In the third quarter, we also continued to optimize our capital structure through prudent execution of our share repurchase program. We repurchased approximately 2 million shares during the quarter, bringing total repurchases to approximately 10 million shares since the program began in late August 2025.
-- James A. Reuter, President and Chief Executive OfficerLooking AheadNet interest income (NII), the total interest revenue minus interest expenses, is expanding as earning assets stabilize.
Our net interest income guidance at the midpoint assumes expansion in NII into the fourth quarter as we continue to benefit from meaningful repricing, a stabilization of earning assets, and relatively strong non-interest-bearing balance performance.
-- David P. Della Camera, Executive Vice President and Chief Financial OfficerA low-cost deposit foundation and regional branch coverage give the business long-term funding stability. Management is watching commercial loan payoff rates and credit discipline as banker capacity expands.
We believe that the continued growth in non-interest-bearing deposits that we saw in the third quarter provides encouraging evidence that our relationship banking efforts are resonating with clients. Our go-to-market strategy has increased scalability, improved market alignment, and expanded banker capacity to fulfill our primary objectives of enhancing our best-in-class deposit franchise. We are well-positioned to execute on our strategy across a range of interest rate environments.
-- James A. Reuter, President and Chief Executive OfficerThe Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
First Interstate BancSystem NASDAQ: FIBK reported third-quarter net income of $62.2 million, or $0.65 per diluted share, compared with $83.9 million, or $0.87 per diluted share, in the second quarter. The sequential decline reflected lower non-interest income, which had included a $19.5 million gain in the prior quarter from a Nebraska branch transaction.
Net interest income increased $4 million, or 2%, from the prior quarter to $206.2 million. Fully taxable equivalent net interest margin expanded to 3.55% from 3.48% in the second quarter and 3.36% a year earlier, marking the company’s 10th consecutive quarter of margin expansion.
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Chief Executive Officer Jim Reuter said the company continued to execute its multiyear strategy of improving the franchise’s earnings power through relationship banking, branch optimization, targeted market investments and balance-sheet repositioning.
“Our primary objective is to protect and strengthen the quality of the deposit franchise and add new customers,” Reuter said. He said client acquisition remained strong in the Rocky Mountain region and that lending production remained concentrated in relationship-based clients with operating deposits and related services.
Margin Gains and Deposit Mix
Chief Financial Officer David Della Camera said loan yields increased 5 basis points during the quarter to 5.67%, while total funding costs fell 4 basis points. Deposit costs benefited from the departure of a large, high-cost, fully collateralized customer whose relationship did not meet the company’s long-term return objectives.
The exit contributed roughly 3 basis points of net interest margin improvement during the quarter, according to Della Camera, and did not materially affect net interest income. Excluding that account, deposits increased during the period.
Total deposits declined $52.8 million to $21.4 billion, but the company said its deposit mix improved as non-interest-bearing balances rose for a second consecutive quarter. Della Camera said interest-bearing deposit costs were 1.51% for the full month of September, compared with 1.49% for the third quarter overall.
Management said it expects underlying deposits to remain relatively stable in the fourth quarter, supported by customer acquisition and continued growth in non-interest-bearing balances. Della Camera noted that fourth-quarter deposit trends are typically stronger early in the quarter and weaker later in the period.
Reuter added that the company has seen growth in the number of clients, which he attributed to branding efforts and bankers expanding customer relationships. He said client growth can support deposits and fee-income opportunities over time.
Loans, Credit and Asset Repricing
Loans decreased $296 million in the third quarter, affected by a $47.7 million reduction in indirect lending, a $64.9 million decline in the retained out-of-market portfolio and a $36.8 million decline in the residential portfolio. Some expected third-quarter payoffs shifted into early in the fourth quarter, management said.
The ratio of loans held for investment to deposits was 65.4% at quarter-end, down from 66.6% in the second quarter and 70.1% a year earlier. Management expects loan balances to remain under pressure in the fourth quarter as it continues exiting certain non-relationship and out-of-market credits, while deposits are expected to be flat to higher.
Della Camera said commercial loan production has increased materially from a year ago, though certain portfolio runoffs have kept the underlying commercial portfolio near flat and still modestly declining. He said the company believes it has added the relationship-manager capacity needed to support future growth but did not provide a timetable for loan growth to resume.
The company said asset repricing and reinvestment should continue to support earnings asset yields into 2027. Della Camera said new loan yields were in the mid-6% range during the third quarter, while investment portfolio reinvestment spreads were estimated in the 40- to 50-basis-point range for maturities of five years or more.
Management said the balance sheet is broadly neutral to interest-rate changes from a net interest income perspective in both the near term and over the following 12 months.
Credit Metrics Remain Stable
Net charge-offs rose $0.2 million sequentially to $9.9 million, or 28 basis points of average loans. First Interstate recorded a $10.5 million provision for credit losses, driven primarily by charge-offs, a 2-basis-point increase in the funded loan allowance for credit losses to 1.30%, and a higher unfunded allowance tied largely to increased unfunded construction commitments.
Criticized loans increased $2.1 million, or 0.2%, from the second quarter but were down 19% from a year earlier. Nonperforming assets declined 6% during the quarter.
Reuter said the company’s credit teams continue to review criticized loans and stress upcoming maturities for higher rates as part of borrower renewal discussions. He said management expects continued long-term improvement in credit quality, while acknowledging that criticized loan levels may not improve in a straight line each quarter.
Capital Deployment and Branch Strategy
First Interstate repurchased about 2 million shares for approximately $76 million in the third quarter. Since the share repurchase program began in late August 2025, the company has repurchased about 10 million shares totaling $347 million.
The company also declared a quarterly common dividend of $0.47 per share, representing a 5% annualized yield based on the average closing share price during the third quarter. Its Common Equity Tier 1 capital ratio was 14.36% at quarter-end, down 18 basis points from the prior quarter, while its leverage ratio was 9.49%.
Della Camera said the company intends to remain active in capital deployment but does not have a specific quarterly repurchase target. He said balance-sheet growth would become the preferred capital allocation opportunity as low-cost deposit and lending growth accelerate.
Management said it plans to open two Colorado branches in the first half of 2027 while consolidating three locations in the fourth quarter of 2026. Reuter said the current expense base, technology, infrastructure and staffing levels support the company’s intended growth without requiring a significant additional investment step-up beyond normal inflationary costs.
About First Interstate BancSystem (NASDAQ:FIBK)First Interstate BancSystem, Inc is a financial holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides community banking services to individuals, businesses, agricultural customers and governmental entities.
First Interstate Bank offers deposit accounts, consumer and commercial loans, mortgage lending, credit cards, cash-management and treasury-management services, online and mobile banking, and wealth-management and investment services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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First Interstate BancSystem, Inc. ( FIBK ) Q3 2026 Earnings Call October 23, 2026 9:30 AM EDT Company Participants Nancy Vermeulen James Reuter - President, CEO & Director David Camera - Executive VP & CFO Conference Call Participants Andrew Terrell - Stephens Inc., Research Division Matthew Clark - Piper Sandler & Co., Research Division Jeff Rulis - D.A. Davidson & Co., Research Division Andrew Liesch - StoneX Financial, Inc., Research Division Kelly Motta - Keefe, Bruyette, & Woods, Inc., Research Division Timothy Coffey - Brean Capital, LLC, Research Division Samuel Varga - UBS Investment Bank, Research Division Terence McEvoy - Wells Fargo Securities, LLC, Research Division Presentation Operator Ladies and gentlemen, thank you for joining us, and welcome to the First Interstate BancSystem, Inc. Third Quarter 2026 Earnings Call.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
First Interstate BancSystem (FIBK) came out with quarterly earnings of $0.65 per share, missing the Zacks Consensus Estimate of $0.7 per share. This compares to earnings of $0.69 per share a year ago.
For the quarter ended September 2026, First Interstate BancSystem (FIBK - Free Report) reported revenue of $250.6 million, down 0.5% over the same period last year. EPS came in at $0.65, compared to $0.69 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $248.88 million, representing a surprise of +0.69%. The company delivered an EPS surprise of -7.14%, with the consensus EPS estimate being $0.70.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how First Interstate BancSystem performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net FTE interest margin ratio: 3.6% versus 3.5% estimated by four analysts on average.Net charge-offs to average loans: 0.3% versus the four-analyst average estimate of 0.3%.Efficiency Ratio: 61.7% compared to the 63.7% average estimate based on four analysts.Total risk-based capital to total risk-weighted assets: 17.2% compared to the 17.7% average estimate based on two analysts.Average Balance - Total interest earning assets: $23.18 billion versus $23.36 billion estimated by two analysts on average.Leverage ratio: 9.5% versus 9.8% estimated by two analysts on average.Total non-performing loans: $151.1 million versus the two-analyst average estimate of $147.91 million.Total non-performing assets: $155 million compared to the $153.68 million average estimate based on two analysts.Tier 1 risk-based capital to total risk-weighted assets: 14.4% versus 14.9% estimated by two analysts on average.Net Interest Income: $206.2 million versus the four-analyst average estimate of $204.89 million.Total noninterest Income: $43.3 million compared to the $42.6 million average estimate based on four analysts.Mortgage banking revenues: $1.5 million compared to the $1.56 million average estimate based on four analysts.View all Key Company Metrics for First Interstate BancSystem here>>>
Shares of First Interstate BancSystem have returned -1% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
BILLINGS, Mont.--(BUSINESS WIRE)--First Interstate BancSystem, Inc. (NASDAQ: FIBK) (the “Company”) today reported financial results for the third quarter of 2026. For the quarter, the Company reported net income of $62.2 million, or $0.65 per diluted share, which compares to net income of $83.9 million, or $0.87 per diluted share, for the second quarter of 2026 and net income of $71.4 million, or $0.69 per diluted share, for the third quarter of 2025. The second quarter of 2026 includes a $19.5.
In its upcoming report, First Interstate BancSystem (FIBK - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.70 per share, reflecting an increase of 1.5% compared to the same period last year. Revenues are forecasted to be $248.88 million, representing a year-over-year decrease of 1.2%.
The consensus EPS estimate for the quarter has undergone an upward revision of 2.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Bearing this in mind, let's now explore the average estimates of specific First Interstate BancSystem metrics that are commonly monitored and projected by Wall Street analysts.
The combined assessment of analysts suggests that 'Net FTE interest margin ratio' will likely reach 3.5%. Compared to the current estimate, the company reported 3.4% in the same quarter of the previous year.
Analysts' assessment points toward 'Efficiency Ratio' reaching 63.6%. The estimate compares to the year-ago value of 61.7%.
Based on the collective assessment of analysts, 'Total risk-based capital to total risk-weighted assets' should arrive at 17.7%. Compared to the present estimate, the company reported 16.6% in the same quarter last year.
According to the collective judgment of analysts, 'Average Balance - Total interest earning assets' should come in at $23.36 billion. Compared to the present estimate, the company reported $24.59 billion in the same quarter last year.
Analysts expect 'Leverage ratio' to come in at 9.8%. Compared to the present estimate, the company reported 9.6% in the same quarter last year.
The average prediction of analysts places 'Total non-performing loans' at $147.91 million. The estimate is in contrast to the year-ago figure of $182.20 million.
The consensus among analysts is that 'Total non-performing assets' will reach $153.68 million. Compared to the present estimate, the company reported $185.60 million in the same quarter last year.
The consensus estimate for 'Tier 1 risk-based capital to total risk-weighted assets' stands at 14.9%. Compared to the current estimate, the company reported 13.9% in the same quarter of the previous year.
It is projected by analysts that the 'Net Interest Income' will reach $204.89 million. The estimate is in contrast to the year-ago figure of $206.80 million.
The collective assessment of analysts points to an estimated 'Total noninterest Income' of $42.60 million. The estimate is in contrast to the year-ago figure of $43.70 million.
Analysts forecast 'Wealth management revenues' to reach $10.72 million. Compared to the present estimate, the company reported $10.40 million in the same quarter last year.
Analysts predict that the 'Net interest income on a fully-taxable equivalent basis' will reach $206.65 million. Compared to the current estimate, the company reported $208.20 million in the same quarter of the previous year.
View all Key Company Metrics for First Interstate BancSystem here>>>
Shares of First Interstate BancSystem have experienced a change of -2.7% in the past month compared to the +1% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), FIBK is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
First Interstate BancSystem (FIBK - Free Report) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on October 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis holding company for First Interstate Bank is expected to post quarterly earnings of $0.70 per share in its upcoming report, which represents a year-over-year change of +1.5%.
Revenues are expected to be $248.88 million, down 1.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.17% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for First Interstate BancSystem?For First Interstate BancSystem, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.16%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that First Interstate BancSystem will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that First Interstate BancSystem would post earnings of $0.64 per share when it actually produced earnings of $0.87, delivering a surprise of +35.94%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
First Interstate BancSystem doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Banks - Midwest industry, Old Second Bancorp (OSBC - Free Report) , is soon expected to post earnings of $0.59 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +11.3%. Revenues for the quarter are expected to be $98.03 million, up 2.2% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Old Second Bancorp has been revised 1.7% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.54%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Old Second Bancorp will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
First Interstate BancSystem, Inc. (NASDAQ: FIBK), parent company of First Interstate Bank, will report third quarter results after the market closes on Thursday
BILLINGS, Mont.--(BUSINESS WIRE)--First Interstate BancSystem, Inc. (NASDAQ: FIBK), parent company of First Interstate Bank, will report third quarter results after the market closes on Thursday, October 22, 2026. A conference call for investors is scheduled for Friday, October 23, 2026, at 9:30 a.m. Eastern (7:30 a.m. Mountain), during which the Company will discuss quarterly results. There will be a question-and-answer session following the presentation. The conference call will be accessible.
Key Takeaways First Interstate BancSystem offers a 5.2% yield while balance-sheet optimization aids its core markets growth.Southside Bancshares targets mid-single-digit loan growth in 2026 while maintaining a 4.9% dividend yield.First Hawaiian expects 3%-4% loan growth in 2026 and offers a dividend yield of approximately 4.2%. Dividend-paying bank stocks can appeal to income-focused investors by offering a combination of recurring cash returns and exposure to the financial sector. While the interest-rate environment, credit trends and funding costs continue to shape banks’ earnings prospects, institutions with resilient balance sheets, healthy capital levels and steady cash flows may be better positioned to sustain shareholder payouts.
Against this backdrop, investors seeking income opportunities may want to keep an eye on three bank stocks, including First Interstate BancSystem, Inc. (FIBK - Free Report) , Southside Bancshares Inc. (SBSI - Free Report) and First Hawaiian, Inc. (FHB - Free Report) , currently offering dividend yields above 4%. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Over the past three months, all three aforementioned bank stocks have declined, potentially giving investors a more attractive entry point to consider.
Price Performance
Image Source: Zacks Investment Research
Let’s take a closer look at what makes these three banks stand out in the current environment and the factors supporting their dividend payouts.
First Interstate BancSystem, headquartered in Billings, MT, is a community banking company that provides banking products and services to individuals, businesses and government entities across 12 states.
In 2025, the company began implementing a strategic plan focused on improving core profitability, optimizing its balance sheet and concentrating capital and resources on its core franchise. In line with these priorities, FIBK expects earnings to benefit from the repricing and reinvestment of maturing fixed-rate loans and securities, while its granular, low-cost deposit base is expected to generate net interest income (NII) in 2026.
As part of this effort, FIBK is also refining its branch network and reducing its presence in markets that are less aligned with its strategic priorities. In the second quarter of 2026, the company sold 11 Nebraska branches and closed six branches across Minnesota, Nebraska, and North Dakota.
Earlier, in October 2025, FIBK completed the divestiture of its banking operations in Arizona and Kansas. These actions are intended to redirect capital and resources toward core markets where FIBK has meaningful market share and attractive growth prospects. In line with this strategy, the company remains focused on deepening customer relationships through loan and deposit growth and expanding organically in established markets. Continued balance-sheet optimization and disciplined capital deployment are expected to further support efficiency and profitability.
The company maintains a solid liquidity position. As of June 30, 2026, FIBK had $1.17 billion in cash and cash equivalents, while total debt stood at nearly $752 million (60.5% being short-term in nature). It currently has a dividend yield of 5.2%. Over the past five years, it has increased its dividend once and has a 58% payout ratio. Check First Interstate BancSystem’s dividend history here.
First Interstate BancSystem, Inc. Dividend Yield (TTM)Southside Bancshares, headquartered in Tyler, TX, is the holding company for Southside Bank, a community-focused financial institution offering consumer and commercial loans, deposit products, wealth management, trust and brokerage services across Texas.
SBSI is focused on expanding its Texas franchise while maintaining a disciplined balance sheet and capital management. The company is targeting loan growth by leveraging its presence in attractive Texas markets and a healthy loan pipeline, while newer construction loans are expected to begin funding in the second half of 2026. As a result, management expects mid-single-digit loan growth in 2026.
Alongside organic growth, the company is also evaluating bank acquisitions in Texas to expand its presence in key markets and strengthen its franchise, with potential deals aimed at filling geographic gaps in Dallas, Houston, Austin, East Texas and Southeast Texas.
Although higher funding costs are likely to keep some pressure on margins, management expects continued NII growth through the end of 2026. Repricing of certain lower-yielding fixed-rate loans is expected to support interest income, while SBSI’s asset-sensitive balance sheet could provide additional support to NII if interest rates remain stable or move higher.
As of June 30, 2026, SBSI had $397 million in cash and cash equivalents. The company also held $996 million in short-term borrowings and $628 million in long-term debt. Despite the weak liquidity position, it continued to maintain its dividend, raising it three times over the past five years (most recently by 2.8% in August 2026). The company currently offers a 4.9% dividend yield and has a 47% payout ratio. Check Southside Bancshares’ dividend history here.
Southside Bancshares, Inc. Dividend Yield (TTM)First Hawaiian, headquartered in Honolulu, HI, is a community bank that provides commercial and consumer banking, wealth management, trust, credit card and merchant processing services across Hawaii, Guam and Saipan.
The company is strengthening its relationship-banking franchise while expanding its geographic footprint. In July 2026, First Hawaiian agreed to acquire TriCo Bancshares, the parent of Tri Counties Bank, in an all-stock transaction. The combination is expected to create a company with approximately $34 billion in assets, expand FHB’s mainland presence and provide greater geographic diversification and broader banking capabilities, subject to regulatory and shareholder approvals.
Alongside this expansion, FHB is focused on navigating the higher-rate environment through its asset-sensitive balance sheet and disciplined deposit-cost management. The company expects loan growth to support earning-asset yields, while disciplined deposit pricing is helping manage funding costs and support net interest margin (NIM). Management expects loans to increase 3-4% in 2026 compared with $14.14 billion recorded in 2025. Meanwhile, it also expects 2026 NIM of 3.24-3.25%, up from 3.15% in 2025.
FHB also maintains a solid liquidity position, with $1 billion in cash and cash equivalents and no short-term borrowings as of June 30, 2026. The company has consistently paid quarterly dividends, raising its payout by 8.3% to 26 cents per share in January 2019 and maintaining it since then. The stock currently offers a dividend yield of 4.2%. Check First Hawaiian’s dividend history here.
National Bank of Canada (OTCMKTS:NTIOF – Get Free Report) and First Interstate BancSystem (NASDAQ:FIBK – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Valuation and Earnings This table compares National Bank of Canada and First Interstate BancSystem”s gross revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio National Bank of Canada $21.96 billion 2.64 $2.87 billion $8.63 17.52 First Interstate BancSystem $1.41 billion 2.52 $302.10 million $3.25 11.49 National Bank of Canada has higher revenue and earnings than First Interstate BancSystem. First Interstate BancSystem is trading at a lower price-to-earnings ratio than National Bank of Canada, indicating that it is currently the more affordable of the two stocks. Risk and Volatility National Bank of Canada has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, First Interstate BancSystem has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.
Analyst Ratings This is a summary of current ratings and target prices for National Bank of Canada and First Interstate BancSystem, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score National Bank of Canada 0 5 3 0 2.38 First Interstate BancSystem 3 3 2 0 1.88 First Interstate BancSystem has a consensus price target of $36.83, indicating a potential downside of 1.38%. Given First Interstate BancSystem’s higher probable upside, analysts clearly believe First Interstate BancSystem is more favorable than National Bank of Canada.
Insider & Institutional Ownership 0.1% of National Bank of Canada shares are held by institutional investors. Comparatively, 88.7% of First Interstate BancSystem shares are held by institutional investors. 0.3% of National Bank of Canada shares are held by insiders. Comparatively, 8.0% of First Interstate BancSystem shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability This table compares National Bank of Canada and First Interstate BancSystem’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets National Bank of Canada 17.22% 16.67% 0.85% First Interstate BancSystem 23.63% 9.55% 1.22% Dividends National Bank of Canada pays an annual dividend of $3.83 per share and has a dividend yield of 2.5%. First Interstate BancSystem pays an annual dividend of $1.88 per share and has a dividend yield of 5.0%. National Bank of Canada pays out 44.4% of its earnings in the form of a dividend. First Interstate BancSystem pays out 57.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary National Bank of Canada beats First Interstate BancSystem on 10 of the 16 factors compared between the two stocks.
(Get Free Report)
National Bank of Canada provides financial services to individuals, businesses, institutional clients, and governments in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, and savings and investment solutions; various insurance products; and commercial banking services, such as credit, and deposit, investment solutions, international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complimentary services. The Wealth Management segment provides full-service brokerage, private banking, direct brokerage, investment solutions, administrative and trade execution, transaction products, and trust and estate services. The Financial Markets segment offers corporate banking, advisory, and capital markets services; and project financing, debt, and equity underwriting; advisory services in the areas of mergers and acquisitions, and financing. The U.S. Specialty Finance and International segment provides specialty finance products; and personal and commercial banking in Cambodia. National Bank of Canada was founded in 1859 and is headquartered in Montreal, Canada.
About First Interstate BancSystem (Get Free Report)
First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, other operational, and specialized staff support services, as well as online and mobile banking services. The company serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, governmental services, healthcare, hospitality, housing, professional services, real estate development, retail, technology, tourism, and wholesale trade. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana.
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First Interstate BancSystem, Inc. (NASDAQ:FIBK – Get Free Report) major shareholder Jonathan Scott sold 16,929 shares of the company’s stock in a transaction on Friday, September 11th. The shares were sold at an average price of $37.03, for a total value of $626,880.87. Following the completion of the transaction, the insider directly owned 825,809 shares in the company, valued at $30,579,707.27. This trade represents a 2.01% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Major shareholders that own at least 10% of a company’s stock are required to disclose their transactions with the SEC.
First Interstate BancSystem Trading Up 0.4% Shares of FIBK opened at $37.46 on Wednesday. The firm has a market capitalization of $3.57 billion, a price-to-earnings ratio of 11.53 and a beta of 0.75. The company has a 50-day moving average of $37.98 and a 200 day moving average of $36.16. First Interstate BancSystem, Inc. has a 1-year low of $29.10 and a 1-year high of $40.60. The company has a debt-to-equity ratio of 0.09, a current ratio of 0.69 and a quick ratio of 0.69.
First Interstate BancSystem (NASDAQ:FIBK – Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The financial services provider reported $0.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.69 by $0.18. First Interstate BancSystem had a return on equity of 9.55% and a net margin of 23.63%.The firm had revenue of $263.90 million during the quarter, compared to analyst estimates of $249.32 million. During the same quarter in the previous year, the business earned $0.69 earnings per share. First Interstate BancSystem’s quarterly revenue was up 6.4% on a year-over-year basis. On average, research analysts expect that First Interstate BancSystem, Inc. will post 2.84 EPS for the current year.
First Interstate BancSystem Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Tuesday, August 4th were issued a $0.47 dividend. This represents a $1.88 annualized dividend and a dividend yield of 5.0%. The ex-dividend date was Tuesday, August 4th. First Interstate BancSystem’s payout ratio is presently 57.85%. Hedge Funds Weigh In On First Interstate BancSystem Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of First Interstate BancSystem during the second quarter valued at about $529,533,000. Dimensional Fund Advisors LP boosted its stake in First Interstate BancSystem by 4.3% in the first quarter. Dimensional Fund Advisors LP now owns 5,630,789 shares of the financial services provider’s stock valued at $188,066,000 after acquiring an additional 231,405 shares in the last quarter. Capital International Investors acquired a new position in shares of First Interstate BancSystem during the fourth quarter worth $92,504,000. Bank of America Corp DE increased its position in shares of First Interstate BancSystem by 1.4% during the first quarter. Bank of America Corp DE now owns 1,778,094 shares of the financial services provider’s stock worth $59,388,000 after purchasing an additional 24,250 shares in the last quarter. Finally, First Trust Advisors LP lifted its holdings in shares of First Interstate BancSystem by 214.9% during the 1st quarter. First Trust Advisors LP now owns 1,197,557 shares of the financial services provider’s stock valued at $39,998,000 after purchasing an additional 817,235 shares during the last quarter. Hedge funds and other institutional investors own 88.71% of the company’s stock.
Analyst Ratings Changes FIBK has been the topic of a number of research reports. Barclays downgraded shares of First Interstate BancSystem from an “equal weight” rating to an “underweight” rating and cut their target price for the company from $38.00 to $37.00 in a research report on Monday, August 3rd. Wells Fargo & Company reaffirmed an “underweight” rating and issued a $34.00 price target (down from $36.00) on shares of First Interstate BancSystem in a research report on Monday, August 10th. DA Davidson reiterated a “neutral” rating and set a $39.00 price objective on shares of First Interstate BancSystem in a research note on Monday, July 27th. Weiss Ratings raised shares of First Interstate BancSystem from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, July 1st. Finally, Wall Street Zen raised shares of First Interstate BancSystem from a “strong sell” rating to a “sell” rating in a research note on Monday, June 22nd. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus price target of $36.83.
Check Out Our Latest Report on First Interstate BancSystem
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First Interstate BancSystem, Inc is a financial holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides community banking services to individuals, businesses, governmental entities and nonprofit organizations.
Its products and services include personal and business deposit accounts, consumer and commercial lending, mortgage banking, treasury management, online and mobile banking, investment services, and wealth management.
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Hsbc Holdings PLC trimmed its position in First Interstate BancSystem, Inc. (NASDAQ:FIBK – Free Report) by 34.2% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 44,496 shares of the financial services provider’s stock after selling 23,128 shares during the quarter. Hsbc Holdings PLC’s holdings in First Interstate BancSystem were worth $1,707,000 as of its most recent filing with the Securities and Exchange Commission.
Other institutional investors and hedge funds have also recently bought and sold shares of the company. Public Employees Retirement System of Ohio acquired a new stake in First Interstate BancSystem in the second quarter worth $65,000. Punch & Associates Investment Management Inc. acquired a new stake in First Interstate BancSystem in the second quarter valued at $30,000,000. Bank of America Corp DE acquired a new stake in First Interstate BancSystem in the second quarter valued at $56,386,000. Man Group plc bought a new position in shares of First Interstate BancSystem in the 2nd quarter valued at about $1,966,000. Finally, Jupiter Topco LLC acquired a new position in shares of First Interstate BancSystem during the 2nd quarter worth about $1,442,000. Institutional investors own 88.71% of the company’s stock.
FIBK opened at $36.92 on Friday. The company has a 50 day moving average of $38.06 and a 200 day moving average of $36.14. The company has a market cap of $3.52 billion, a PE ratio of 11.36 and a beta of 0.75. First Interstate BancSystem, Inc. has a 12 month low of $29.10 and a 12 month high of $40.60. The company has a current ratio of 0.69, a quick ratio of 0.69 and a debt-to-equity ratio of 0.09.
First Interstate BancSystem (NASDAQ:FIBK – Get Free Report) last posted its earnings results on Thursday, July 23rd. The financial services provider reported $0.87 EPS for the quarter, topping the consensus estimate of $0.69 by $0.18. First Interstate BancSystem had a return on equity of 9.55% and a net margin of 23.63%.The business had revenue of $263.90 million during the quarter, compared to analysts’ expectations of $249.32 million. During the same period in the previous year, the business earned $0.69 earnings per share. The firm’s revenue was up 6.4% on a year-over-year basis. On average, sell-side analysts expect that First Interstate BancSystem, Inc. will post 2.84 EPS for the current year. First Interstate BancSystem Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Tuesday, August 4th were issued a dividend of $0.47 per share. The ex-dividend date was Tuesday, August 4th. This represents a $1.88 dividend on an annualized basis and a yield of 5.1%. First Interstate BancSystem’s payout ratio is presently 57.85%.
Insider Buying and Selling at First Interstate BancSystem In related news, major shareholder Jonathan Scott sold 4,500 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $36.29, for a total value of $163,305.00. Following the transaction, the insider owned 862,128 shares of the company’s stock, valued at $31,286,625.12. This represents a 0.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Julie A. Scott sold 15,000 shares of First Interstate BancSystem stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $35.97, for a total value of $539,550.00. Following the completion of the sale, the insider owned 488,359 shares of the company’s stock, valued at $17,566,273.23. The trade was a 2.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 8.00% of the company’s stock.
Wall Street Analyst Weigh In Several analysts recently weighed in on FIBK shares. Barclays cut First Interstate BancSystem from an “equal weight” rating to an “underweight” rating and dropped their price target for the stock from $38.00 to $37.00 in a report on Monday, August 3rd. DA Davidson reaffirmed a “neutral” rating and issued a $39.00 price objective on shares of First Interstate BancSystem in a report on Monday, July 27th. Wells Fargo & Company reiterated an “underweight” rating and set a $34.00 target price (down from $36.00) on shares of First Interstate BancSystem in a research report on Monday, August 10th. Wall Street Zen raised First Interstate BancSystem from a “strong sell” rating to a “sell” rating in a research note on Monday, June 22nd. Finally, Weiss Ratings raised shares of First Interstate BancSystem from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, July 1st. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and an average target price of $36.83.
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First Interstate BancSystem Profile (Free Report)
First Interstate BancSystem, Inc is a financial holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides community banking services to individuals, businesses, governmental entities and nonprofit organizations.
Its products and services include personal and business deposit accounts, consumer and commercial lending, mortgage banking, treasury management, online and mobile banking, investment services, and wealth management.
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BlackRock Inc. acquired a new position in shares of First Interstate BancSystem, Inc. (NASDAQ:FIBK – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 13,732,702 shares of the financial services provider’s stock, valued at approximately $529,533,000. BlackRock Inc. owned about 14.14% of First Interstate BancSystem as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other large investors also recently added to or reduced their stakes in the stock. Louisiana State Employees Retirement System acquired a new position in shares of First Interstate BancSystem during the 1st quarter valued at about $1,303,000. Hsbc Holdings PLC acquired a new stake in First Interstate BancSystem during the fourth quarter worth about $2,127,000. SG Americas Securities LLC increased its position in First Interstate BancSystem by 43.5% during the first quarter. SG Americas Securities LLC now owns 108,497 shares of the financial services provider’s stock worth $3,624,000 after purchasing an additional 32,914 shares during the last quarter. Villere ST Denis J & Co. LLC raised its stake in First Interstate BancSystem by 15.1% during the first quarter. Villere ST Denis J & Co. LLC now owns 627,031 shares of the financial services provider’s stock worth $20,943,000 after purchasing an additional 82,117 shares during the period. Finally, California State Teachers Retirement System raised its stake in First Interstate BancSystem by 36.9% during the first quarter. California State Teachers Retirement System now owns 113,551 shares of the financial services provider’s stock worth $3,793,000 after purchasing an additional 30,614 shares during the period. 88.71% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth FIBK has been the subject of several analyst reports. Keefe, Bruyette & Woods reissued a “market perform” rating and issued a $37.00 price target (down from $38.00) on shares of First Interstate BancSystem in a research note on Friday, May 1st. Barclays lowered shares of First Interstate BancSystem from an “equal weight” rating to an “underweight” rating and reduced their price target for the company from $38.00 to $37.00 in a research report on Monday, August 3rd. DA Davidson reiterated a “neutral” rating and issued a $39.00 price objective on shares of First Interstate BancSystem in a report on Monday, July 27th. Wall Street Zen upgraded First Interstate BancSystem from a “strong sell” rating to a “sell” rating in a research report on Monday, June 22nd. Finally, Weiss Ratings upgraded First Interstate BancSystem from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, July 1st. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Reduce” and an average price target of $36.83.
Check Out Our Latest Stock Analysis on FIBK Insider Activity at First Interstate BancSystem In related news, major shareholder Julie A. Scott sold 15,000 shares of First Interstate BancSystem stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $35.97, for a total value of $539,550.00. Following the completion of the transaction, the insider directly owned 488,359 shares in the company, valued at approximately $17,566,273.23. This trade represents a 2.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Jonathan R. Scott sold 12,892 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $35.58, for a total value of $458,697.36. Following the completion of the sale, the insider directly owned 866,628 shares in the company, valued at $30,834,624.24. This represents a 1.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 32,392 shares of company stock valued at $1,161,552 in the last three months. 8.00% of the stock is currently owned by corporate insiders.
First Interstate BancSystem Stock Performance NASDAQ:FIBK opened at $37.24 on Tuesday. First Interstate BancSystem, Inc. has a fifty-two week low of $29.10 and a fifty-two week high of $40.60. The company has a debt-to-equity ratio of 0.09, a quick ratio of 0.69 and a current ratio of 0.69. The company has a 50 day moving average price of $38.23 and a 200 day moving average price of $36.20. The stock has a market capitalization of $3.55 billion, a P/E ratio of 11.46 and a beta of 0.76.
First Interstate BancSystem (NASDAQ:FIBK – Get Free Report) last announced its earnings results on Thursday, July 23rd. The financial services provider reported $0.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.69 by $0.18. The company had revenue of $263.90 million for the quarter, compared to analyst estimates of $249.32 million. First Interstate BancSystem had a return on equity of 9.55% and a net margin of 23.63%.The firm’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.69 earnings per share. Equities research analysts forecast that First Interstate BancSystem, Inc. will post 2.84 EPS for the current year.
First Interstate BancSystem Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Tuesday, August 4th were given a $0.47 dividend. This represents a $1.88 annualized dividend and a yield of 5.0%. The ex-dividend date of this dividend was Tuesday, August 4th. First Interstate BancSystem’s dividend payout ratio (DPR) is currently 57.85%.
(Free Report)
First Interstate BancSystem, Inc is a bank holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides a full range of commercial and consumer banking services. Its offerings include business lending, commercial real estate financing, agricultural loans, residential mortgage products, and deposit accounts suitable for individuals, small businesses, and large corporations.
The company traces its roots back to the late 1960s and has grown through a combination of organic expansion and strategic acquisitions across the Western United States.
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First Interstate BancSystem reported strong Q2 2026 results, beating profit and revenue expectations, but the stock showed minimal reaction. FIBK faces declining earning assets due to accelerated loan payoffs and branch sales, challenging near-term profit growth. The stock trades at a premium with a 1.69x price/tangible book and a 4.89% dividend yield, but some asset quality concerns persist.
First Interstate BancSystem NASDAQ: FIBK reported second-quarter 2026 net income of $83.9 million, or $0.87 per diluted share, compared with $60.2 million, or $0.61 per diluted share, in the first quarter. Results included a $19.5 million gain from a branch transaction completed during the quarter.
Management said it continued to prioritize long-term profitability, deposit mix, credit quality and operating efficiency, even as elevated loan payoffs drove a larger-than-expected decline in reported loan balances.
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Margin expands as funding costs decline Net interest income rose 0.7% from the first quarter to $202.2 million, supported by net interest margin expansion and an additional accrual day. The increase was partly offset by lower interest-earning assets, including the impact of the branch sale completed in April.
Fully taxable equivalent net interest margin rose to 3.48%, from 3.43% in the first quarter and 3.32% a year earlier. The second quarter marked the company’s ninth consecutive quarter of margin expansion.
Chief Financial Officer David Della Camera said average loan yields increased two basis points sequentially to 5.62%, while total deposit costs declined three basis points and total funding costs fell four basis points. He also noted that, over the past year, investment-security yields increased to 2.98% from 2.72%, while total deposit costs declined to 1.17% from 1.33%.
“These trends highlight the continued improvement in the underlying profitability of the balance sheet,” Della Camera said.
Loan balances fall on accelerated payoffs Loans declined $447 million during the second quarter, reflecting continued reductions in agricultural and residential loans, amortization in the indirect lending portfolio, and higher loan paydowns and payoffs. Management said the increased payoff activity accelerated late in the quarter and was concentrated in criticized loans, secondary-market activity, loans in divested markets and credits considered to have limited relationship value.
Chief Executive Officer James Reuter said the company has not pursued near-term balance-sheet growth that would conflict with its relationship-banking strategy. Commercial loan production improved during the quarter, particularly in the Rocky Mountain region, he said, though production was outweighed by payoffs.
Della Camera said the company categorizes its out-of-market portfolio at roughly the mid-$600 million level, with approximately $100 million of payoffs from that portfolio during the second quarter. He said most commercial loan payoffs did not affect core relationships.
Management expects accelerated payoff activity to continue through the rest of 2026, pulling forward some exits that the company previously expected in later years. The company’s updated outlook incorporates a smaller near-term balance sheet, including additional expected runoff in mortgage, indirect and out-of-market lending categories.
During the question-and-answer session, Della Camera said average earning assets are expected to bottom in the third quarter, while period-end earning assets are expected to be roughly flat to improving from there. Fourth-quarter average earning assets are expected to be higher, based on the company’s guidance.
New loan yields were in the low- to mid-6% range depending on the loan type, Della Camera said, and there were no notable prepayment fees contributing to second-quarter margin performance.
Deposits decline following branch transaction Total deposits fell $441.7 million to $21.4 billion as of June 30. More than half of the decline resulted from the sale of $244 million in deposits as part of the Nebraska branch transaction.
The company said its deposit mix improved during the quarter. Noninterest-bearing balances returned to growth both sequentially and year over year when adjusted for deposits sold in branch transactions. Average deposits declined $212.3 million, less than the period-end decline, due to end-of-period outflows associated with larger customer deposit movements.
Management said it allowed some higher-cost time deposits to leave the balance sheet while focusing on core customer relationships. The loan-to-deposit ratio declined to 66.6% at quarter-end, from 67.3% in the first quarter and 72.3% a year earlier.
Credit quality improves, capital returns continue Net charge-offs rose $7.3 million sequentially to $9.7 million, or 27 basis points of average loans, primarily from partial or total resolutions of previously reserved credits. The company recorded a $3.2 million reduction in its provision for credit losses, driven mainly by lower loan balances.
Criticized loans declined $95.8 million, or 9.3%, from the first quarter and were down 22% over the past 12 months. The total funded allowance for credit losses decreased to 1.28% of loans held for investment, from 1.33% in the prior quarter, reflecting resolutions within previously reserved nonperforming loans.
Noninterest income increased $20.6 million sequentially to $61.7 million, driven primarily by the branch-sale gain. Noninterest expense rose $1.3 million to $158.9 million, reflecting higher advertising, professional fees related largely to branding efforts, donations, branch-closure costs and other expenses. Those increases were mostly offset by lower salaries, wages and employee benefits.
First Interstate repurchased about 1.9 million shares for approximately $69 million during the quarter. Since beginning its repurchase program in August, the company has repurchased roughly 8 million shares and returned about $270 million to shareholders. It increased its cumulative repurchase authorization by $150 million to $450 million.
The company also declared a quarterly common dividend of $0.47 per share. Its Common Equity Tier 1 capital ratio rose 24 basis points sequentially to 14.54%, while its leverage ratio was 9.59%.
Management said it added 14 relationship managers year to date while maintaining what it views as a structurally lower staffing level following its reorganization. Reuter said the company is seeing growing commercial pipelines across its footprint and that July had begun positively, while emphasizing that future expansion will remain disciplined and relationship focused.
About First Interstate BancSystem (NASDAQ:FIBK)First Interstate BancSystem, Inc is a bank holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides a full range of commercial and consumer banking services. Its offerings include business lending, commercial real estate financing, agricultural loans, residential mortgage products, and deposit accounts suitable for individuals, small businesses, and large corporations.
The company traces its roots back to the late 1960s and has grown through a combination of organic expansion and strategic acquisitions across the Western United States.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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First Interstate BancSystem, Inc. (FIBK) Q2 2026 Earnings Call July 24, 2026 9:30 AM EDT
Company Participants
Nancy Vermeulen
James Reuter - President, CEO & Director
David Camera - Executive VP & CFO
Conference Call Participants
Matthew Clark - Piper Sandler & Co., Research Division
Kelly Motta - Keefe, Bruyette, & Woods, Inc., Research Division
Timur Braziler - UBS Investment Bank, Research Division
Jeff Rulis - D.A. Davidson & Co., Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to the First Interstate BancSystem Inc. Second Quarter 2026 Earnings Call. [Operator Instructions]
I will now hand the conference over to Nancy Vermeulen. Please go ahead.
Nancy Vermeulen
Thanks very much. Good morning, and thank you for joining us for our second quarter earnings conference call. As we begin, please note that the information provided during this call will contain forward-looking statements. Actual results or outcomes might differ materially from those expressed by those statements. I'd like to direct all listeners to read the cautionary note regarding forward-looking statements contained in our most recent quarterly report on Form 10-K filed with the SEC and in our earnings release as well as the risk factors identified in the quarterly report and our more recent periodic reports filed with the SEC.
Relevant factors that could cause actual results to differ materially from any forward-looking statements are included in the earnings release and in our SEC filings, and the company does not undertake to update any of the forward-looking statements made today. A copy of our earnings release, which contains non-GAAP financial measures, is available on our website at fibk.com. Information regarding our use of the non-GAAP financial measures may be found in the body of the earnings release and a reconciliation to their most directly comparable GAAP financial measures is included at the end of the
First Interstate BancSystem (FIBK - Free Report) reported $265.3 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 6.3%. EPS of $0.87 for the same period compares to $0.69 a year ago.
The reported revenue represents a surprise of +7.58% over the Zacks Consensus Estimate of $246.6 million. With the consensus EPS estimate being $0.64, the EPS surprise was +35.94%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how First Interstate BancSystem performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net FTE interest margin ratio: 3.5% versus the two-analyst average estimate of 3.5%.Efficiency Ratio: 59% compared to the 63.7% average estimate based on two analysts.Mortgage banking revenues: $1.5 million compared to the $1.57 million average estimate based on two analysts.Total noninterest Income: $61.7 million versus the two-analyst average estimate of $42.52 million.Net Interest Income: $202.2 million compared to the $203.43 million average estimate based on two analysts.View all Key Company Metrics for First Interstate BancSystem here>>>
Shares of First Interstate BancSystem have returned +1.4% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
First Interstate BancSystem (FIBK - Free Report) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +35.94%. A quarter ago, it was expected that this holding company for First Interstate Bank would post earnings of $0.6 per share when it actually produced earnings of $0.61, delivering a surprise of +1.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
First Interstate BancSystem, which belongs to the Zacks Banks - Midwest industry, posted revenues of $265.3 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.58%. This compares to year-ago revenues of $249.7 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
First Interstate BancSystem shares have added about 11% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for First Interstate BancSystem?While First Interstate BancSystem has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for First Interstate BancSystem was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.67 on $252.15 million in revenues for the coming quarter and $2.66 on $998.55 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, German American Bancorp (GABC - Free Report) , is yet to report results for the quarter ended June 2026.
This financial services holding company is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of +7%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.
German American Bancorp's revenues are expected to be $98.43 million, up 9.5% from the year-ago quarter.
BILLINGS, Mont.--(BUSINESS WIRE)--First Interstate BancSystem, Inc. (NASDAQ: FIBK) (the “Company”) today reported financial results for the second quarter of 2026. For the quarter, the Company reported net income of $83.9 million, or $0.87 per diluted share, which compares to net income of $60.2 million, or $0.61 per diluted share, for the first quarter of 2026 and net income of $71.7 million, or $0.69 per diluted share, for the second quarter of 2025. HIGHLIGHTS Completed the sale of eleven Ne.
BILLINGS, Mont.--(BUSINESS WIRE)--First Interstate BancSystem, Inc. (NASDAQ: FIBK), parent company of First Interstate Bank, will report second quarter results after the market closes on Thursday, July 23, 2026. A conference call for investors is scheduled for Friday, July 24, 2026, at 9:30 a.m. Eastern (7:30 a.m. Mountain), during which the Company will discuss quarterly results. There will be a question-and-answer session following the presentation.
The conference call will be accessible by telephone and through the Internet. Shareholders, analysts, and other interested parties are invited to join the call by dialing 833-461-5787; the Meeting ID is 544 064 138. To participate via the Internet, visit www.FIBK.com. A webcast replay will be available approximately two hours after the end of the conference call by visiting https://events.q4inc.com/attendee/544064138. The call will also be archived on the Company’s website, www.FIBK.com.
About First Interstate BancSystem, Inc.
First Interstate BancSystem, Inc. is a financial services holding company headquartered in Billings, Montana. It is the parent company of First Interstate Bank, a community bank proudly delivering financial solutions across Colorado, Idaho, Iowa, Missouri, Montana, Nebraska, Oregon, South Dakota, Washington, and Wyoming. A recognized leader in community banking services, First Interstate is driven by strong values as well as a commitment to delivering a rewarding experience to its employees, strong returns to shareholders, exceptional products and services to its clients, and resources to the communities it serves. More information is available at www.FIBK.com.
First Interstate BancSystem, Inc. (NASDAQ: FIBK - Get Free Report) has been given a consensus recommendation of "Hold" by the eight research firms that are covering the company, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and three have given a buy recommendation to the company.
BILLINGS, Mont.--(BUSINESS WIRE)--First Interstate BancSystem, Inc. (NASDAQ: FIBK), parent company of First Interstate Bank, will report first quarter results after the market closes on Wednesday, April 29, 2026. A conference call for investors is scheduled for Thursday, April 30, 2026, at 9:30 a.m. Eastern (7:30 a.m. Mountain), during which the Company will discuss quarterly results. There will be a question-and-answer session following the presentation.
The conference call will be accessible by telephone and through the Internet. Shareholders, analysts, and other interested parties are invited to join the call by dialing 800-715-9871; the Conference ID is 5906009. To participate via the Internet, visit www.FIBK.com. A telephone replay will be available approximately one hour after the end of the conference call by dialing 800-770-2030; the Playback ID is 5906009 followed by the # key. The call will also be archived on the Company’s website, www.FIBK.com.
About First Interstate BancSystem, Inc.
First Interstate BancSystem, Inc. is a financial services holding company headquartered in Billings, Montana. It is the parent company of First Interstate Bank, a community bank proudly delivering financial solutions across Colorado, Idaho, Iowa, Missouri, Montana, Nebraska, Oregon, South Dakota, Washington, and Wyoming. A recognized leader in community banking services, First Interstate is driven by strong values as well as a commitment to delivering a rewarding experience to its employees, strong returns to shareholders, exceptional products and services to its clients, and resources to the communities it serves. More information is available at www.FIBK.com.
SG Americas Securities LLC boosted its stake in shares of First Interstate BancSystem, Inc. (NASDAQ:FIBK – Free Report) by 180.6% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 75,583 shares of the financial services provider’s stock after purchasing an additional 48,648 shares during the quarter. SG Americas Securities LLC owned about 0.07% of First Interstate BancSystem worth $2,615,000 at the end of the most recent reporting period.
Other large investors also recently modified their holdings of the company. Dimensional Fund Advisors LP boosted its holdings in shares of First Interstate BancSystem by 1.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 5,495,403 shares of the financial services provider’s stock worth $175,140,000 after buying an additional 78,835 shares during the period. Teachers Retirement System of The State of Kentucky bought a new position in First Interstate BancSystem in the 3rd quarter valued at about $2,115,000. Vestmark Advisory Solutions Inc. bought a new position in First Interstate BancSystem in the 3rd quarter valued at about $895,000. Cambria Investment Management L.P. acquired a new stake in First Interstate BancSystem during the third quarter worth approximately $9,083,000. Finally, HoldCo Asset Management LP lifted its position in First Interstate BancSystem by 10.6% during the third quarter. HoldCo Asset Management LP now owns 3,950,107 shares of the financial services provider’s stock worth $125,890,000 after acquiring an additional 380,000 shares during the last quarter. 88.71% of the stock is owned by institutional investors.
First Interstate BancSystem Price Performance NASDAQ FIBK opened at $33.48 on Friday. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.09. The company has a market cap of $3.39 billion, a price-to-earnings ratio of 11.35 and a beta of 0.77. The company has a 50 day moving average of $35.33 and a 200-day moving average of $34.12. First Interstate BancSystem, Inc. has a 1-year low of $22.95 and a 1-year high of $39.26.
First Interstate BancSystem (NASDAQ:FIBK – Get Free Report) last issued its quarterly earnings results on Wednesday, January 28th. The financial services provider reported $1.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.64 by $0.44. The business had revenue of $205.10 million for the quarter, compared to the consensus estimate of $256.89 million. First Interstate BancSystem had a return on equity of 8.83% and a net margin of 21.40%.The firm’s quarterly revenue was up 19.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.50 earnings per share. On average, equities research analysts expect that First Interstate BancSystem, Inc. will post 2.53 earnings per share for the current fiscal year.
First Interstate BancSystem Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Friday, February 20th. Stockholders of record on Tuesday, February 10th were issued a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a dividend yield of 5.6%. The ex-dividend date of this dividend was Tuesday, February 10th. First Interstate BancSystem’s dividend payout ratio is 63.73%.
Insider Activity at First Interstate BancSystem In related news, major shareholder Jonathan R. Scott sold 3,173 shares of the business’s stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $36.20, for a total value of $114,862.60. Following the completion of the transaction, the insider owned 937,851 shares of the company’s stock, valued at $33,950,206.20. The trade was a 0.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 8.20% of the company’s stock.
Analyst Upgrades and Downgrades FIBK has been the topic of several research reports. Keefe, Bruyette & Woods upped their target price on First Interstate BancSystem from $37.00 to $39.00 and gave the company an “outperform” rating in a research report on Wednesday, December 17th. Piper Sandler dropped their price target on First Interstate BancSystem from $44.00 to $41.00 and set an “overweight” rating for the company in a report on Thursday. Stephens lowered First Interstate BancSystem from an “overweight” rating to an “equal weight” rating in a report on Thursday, February 5th. Weiss Ratings upgraded First Interstate BancSystem from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday. Finally, Wells Fargo & Company lifted their target price on First Interstate BancSystem from $30.00 to $36.00 and gave the stock an “underweight” rating in a report on Monday, March 30th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $38.67.
View Our Latest Research Report on FIBK
First Interstate BancSystem Profile (Free Report)
First Interstate BancSystem, Inc is a bank holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides a full range of commercial and consumer banking services. Its offerings include business lending, commercial real estate financing, agricultural loans, residential mortgage products, and deposit accounts suitable for individuals, small businesses, and large corporations.
The company traces its roots back to the late 1960s and has grown through a combination of organic expansion and strategic acquisitions across the Western United States.
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Davidson Investment Advisors increased its stake in First Interstate BancSystem, Inc. (NASDAQ:FIBK – Free Report) by 19.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 481,538 shares of the financial services provider’s stock after acquiring an additional 77,692 shares during the period. Davidson Investment Advisors owned about 0.47% of First Interstate BancSystem worth $16,661,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors also recently modified their holdings of FIBK. AQR Capital Management LLC lifted its stake in shares of First Interstate BancSystem by 37.2% in the 1st quarter. AQR Capital Management LLC now owns 67,214 shares of the financial services provider’s stock valued at $1,926,000 after acquiring an additional 18,210 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of First Interstate BancSystem by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 47,230 shares of the financial services provider’s stock valued at $1,353,000 after acquiring an additional 2,070 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in shares of First Interstate BancSystem in the 1st quarter valued at about $238,000. Jones Financial Companies Lllp lifted its stake in shares of First Interstate BancSystem by 24,352.5% in the 1st quarter. Jones Financial Companies Lllp now owns 24,697 shares of the financial services provider’s stock valued at $708,000 after acquiring an additional 24,596 shares during the last quarter. Finally, Jane Street Group LLC bought a new stake in shares of First Interstate BancSystem in the 1st quarter valued at about $5,125,000. Institutional investors own 88.71% of the company’s stock.
Analyst Ratings Changes A number of equities research analysts have recently weighed in on FIBK shares. DA Davidson reissued a “buy” rating and issued a $42.00 target price on shares of First Interstate BancSystem in a research note on Thursday, January 29th. Barclays reduced their price target on First Interstate BancSystem from $38.00 to $36.00 and set an “equal weight” rating on the stock in a report on Friday, January 30th. Wall Street Zen upgraded First Interstate BancSystem from a “sell” rating to a “hold” rating in a report on Saturday, March 7th. Keefe, Bruyette & Woods reduced their price target on First Interstate BancSystem from $39.00 to $38.00 and set an “outperform” rating on the stock in a report on Thursday, April 9th. Finally, Wells Fargo & Company boosted their price target on First Interstate BancSystem from $30.00 to $36.00 and gave the company an “underweight” rating in a report on Monday, March 30th. Four analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $38.00.
Get Our Latest Stock Analysis on First Interstate BancSystem
First Interstate BancSystem Price Performance Shares of NASDAQ:FIBK opened at $34.62 on Monday. First Interstate BancSystem, Inc. has a 1 year low of $24.76 and a 1 year high of $39.26. The company has a market cap of $3.50 billion, a PE ratio of 11.74 and a beta of 0.77. The company has a debt-to-equity ratio of 0.09, a current ratio of 0.72 and a quick ratio of 0.72. The stock’s 50-day moving average is $34.72 and its 200 day moving average is $34.24.
First Interstate BancSystem (NASDAQ:FIBK – Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The financial services provider reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.64 by $0.44. First Interstate BancSystem had a return on equity of 8.83% and a net margin of 21.40%.The company had revenue of $205.10 million for the quarter, compared to the consensus estimate of $256.89 million. During the same quarter in the previous year, the business earned $0.50 EPS. First Interstate BancSystem’s revenue was up 19.8% compared to the same quarter last year. Sell-side analysts anticipate that First Interstate BancSystem, Inc. will post 2.53 EPS for the current year.
First Interstate BancSystem Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Friday, February 20th. Stockholders of record on Tuesday, February 10th were given a $0.47 dividend. The ex-dividend date of this dividend was Tuesday, February 10th. This represents a $1.88 annualized dividend and a dividend yield of 5.4%. First Interstate BancSystem’s dividend payout ratio is currently 63.73%.
About First Interstate BancSystem (Free Report)
First Interstate BancSystem, Inc is a bank holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides a full range of commercial and consumer banking services. Its offerings include business lending, commercial real estate financing, agricultural loans, residential mortgage products, and deposit accounts suitable for individuals, small businesses, and large corporations.
The company traces its roots back to the late 1960s and has grown through a combination of organic expansion and strategic acquisitions across the Western United States.
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State of Alaska Department of Revenue increased its stake in First Interstate BancSystem, Inc. (NASDAQ:FIBK – Free Report) by 1,104.9% during the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 49,857 shares of the financial services provider’s stock after buying an additional 45,719 shares during the period. State of Alaska Department of Revenue’s holdings in First Interstate BancSystem were worth $1,724,000 as of its most recent filing with the Securities & Exchange Commission.
Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. First Horizon Corp purchased a new stake in First Interstate BancSystem during the 3rd quarter valued at $26,000. EverSource Wealth Advisors LLC boosted its stake in First Interstate BancSystem by 139.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,481 shares of the financial services provider’s stock valued at $43,000 after purchasing an additional 862 shares during the last quarter. GAMMA Investing LLC boosted its stake in First Interstate BancSystem by 49.6% during the 4th quarter. GAMMA Investing LLC now owns 1,556 shares of the financial services provider’s stock valued at $54,000 after purchasing an additional 516 shares during the last quarter. Jones Financial Companies Lllp boosted its stake in First Interstate BancSystem by 1,485.1% during the 3rd quarter. Jones Financial Companies Lllp now owns 1,601 shares of the financial services provider’s stock valued at $52,000 after purchasing an additional 1,500 shares during the last quarter. Finally, CIBC Private Wealth Group LLC purchased a new stake in First Interstate BancSystem during the 3rd quarter valued at $52,000. 88.71% of the stock is owned by institutional investors.
Analyst Ratings Changes Several analysts have commented on the company. Wall Street Zen upgraded First Interstate BancSystem from a “sell” rating to a “hold” rating in a research note on Saturday, March 7th. Keefe, Bruyette & Woods cut their target price on First Interstate BancSystem from $39.00 to $38.00 and set an “outperform” rating on the stock in a research note on Thursday, April 9th. Stephens downgraded First Interstate BancSystem from an “overweight” rating to an “equal weight” rating in a research note on Thursday, February 5th. DA Davidson reiterated a “buy” rating and set a $42.00 target price on shares of First Interstate BancSystem in a research note on Thursday, January 29th. Finally, Piper Sandler cut their target price on First Interstate BancSystem from $44.00 to $41.00 and set an “overweight” rating on the stock in a research note on Thursday, April 2nd. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, First Interstate BancSystem presently has a consensus rating of “Hold” and an average price target of $38.00.
Check Out Our Latest Research Report on FIBK
First Interstate BancSystem Price Performance NASDAQ FIBK opened at $34.62 on Monday. The business’s fifty day moving average price is $34.72 and its 200-day moving average price is $34.24. The stock has a market capitalization of $3.50 billion, a price-to-earnings ratio of 11.74 and a beta of 0.77. The company has a debt-to-equity ratio of 0.09, a current ratio of 0.72 and a quick ratio of 0.72. First Interstate BancSystem, Inc. has a 1-year low of $24.76 and a 1-year high of $39.26.
First Interstate BancSystem (NASDAQ:FIBK – Get Free Report) last released its quarterly earnings results on Wednesday, January 28th. The financial services provider reported $1.08 earnings per share for the quarter, beating the consensus estimate of $0.64 by $0.44. The firm had revenue of $205.10 million for the quarter, compared to analysts’ expectations of $256.89 million. First Interstate BancSystem had a return on equity of 8.83% and a net margin of 21.40%.The company’s revenue was up 19.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.50 EPS. On average, equities analysts predict that First Interstate BancSystem, Inc. will post 2.53 earnings per share for the current year.
First Interstate BancSystem Announces Dividend The company also recently declared a quarterly dividend, which was paid on Friday, February 20th. Stockholders of record on Tuesday, February 10th were issued a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a dividend yield of 5.4%. The ex-dividend date of this dividend was Tuesday, February 10th. First Interstate BancSystem’s dividend payout ratio is presently 63.73%.
First Interstate BancSystem Company Profile (Free Report)
First Interstate BancSystem, Inc is a bank holding company headquartered in Billings, Montana. Through its principal subsidiary, First Interstate Bank, the company provides a full range of commercial and consumer banking services. Its offerings include business lending, commercial real estate financing, agricultural loans, residential mortgage products, and deposit accounts suitable for individuals, small businesses, and large corporations.
The company traces its roots back to the late 1960s and has grown through a combination of organic expansion and strategic acquisitions across the Western United States.
See Also Five stocks we like better than First Interstate BancSystem Want to see what other hedge funds are holding FIBK? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for First Interstate BancSystem, Inc. (NASDAQ:FIBK – Free Report).
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What happenedAccording to a filing with the Securities and Exchange Commission dated April 20, 2026, Moody Aldrich Partners LLC established a new position in First Interstate BancSystem (FIBK +0.74%) during the first quarter by acquiring 170,347 shares. The estimated transaction value was $6.09 million based on the average unadjusted close for the quarter. The position’s value at quarter-end stood at $5.69 million, reflecting the purchase of shares.
What else to knowThis was a new position for Moody Aldrich Partners LLC, representing 1.03% of its 13F assets under management as of March 31, 2026.Top holdings after the filing:NASDAQ:INDB: $10.83 million (2.0% of AUM)NYSE:ESI: $9.51 million (1.7% of AUM)NASDAQ:CASH: $9.40 million (1.7% of AUM)NASDAQ:ONB: $9.26 million (1.7% of AUM)NASDAQ:WTFC: $9.05 million (1.6% of AUM)As of April 19, 2026, shares of First Interstate BancSystem were priced at $34.62, up 41.5% over the past year, outperforming the S&P 500 by 6.35 percentage points.Company overviewMetricValueRevenue (TTM)$1.41 billionNet income (TTM)$302.10 millionDividend yield5.43%Price (as of market close April 17, 2026)$34.62Company snapshotOffers a comprehensive suite of traditional and specialized banking products and services, including deposit accounts, commercial and consumer loans, real estate financing, trust and investment management, and digital banking solutions.Generates revenue primarily through net interest income on loans and deposits, as well as fee-based income from trust, investment, and other financial services.Serves individuals, businesses, municipalities, and nonprofit organizations across multiple industries, with a regional focus in the Northwestern United States.First Interstate BancSystem is a leading regional bank holding company with a significant presence in the Northwestern U.S., operating through a network of over 140 banking offices. The company leverages a diversified product portfolio and robust digital capabilities to provide comprehensive financial solutions to a broad customer base.
What this transaction means for investorsThe addition of First Interstate BancSystem shares was the third-largest new addition to Moody Aldrich’s portfolio during the first quarter. The firm’s largest new addition during the quarter was also a relatively large regional bank, Old National Bancorp, which suggests bullishness for the industry.
First Interstate BancSystem will report first-quarter results after the market closes on Wednesday, April 29, 2026. During the fourth quarter of 2026, the regional bank reported net income that rose 108.7% year over year to $108.8 million. The bank gained $62.7 million from the sale of branches in Arizona and Kansas last October.
More sales are planned in the near term. In the second quarter of 2026, the bank expects to close on the sale of 15 branches in Nebraska.
First Interstate reported total deposits that increased by $124.9 million during the fourth quarter, if we ignore deposits sold in the Arizona and Kansas transactions. The sale of Arizona and Kansas branches helped raise the bank’s overall tier 1 capital ratio by 0.48% to a healthy 14.38% at the end of 2025.
Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
First Interstate BancSystem demonstrates improving profitability and asset quality, but I maintain a "Hold" rating pending further valuation progress. FIBK's net interest margin and non-interest income have improved, aided by balance sheet adjustments and a significant branch sale. Deposit quality remains a concern, with 36.2% uninsured deposits and declining loan balances, though leverage has been substantially reduced.
First Financial Corp. (THFF - Free Report) came out with quarterly earnings of $1.67 per share, beating the Zacks Consensus Estimate of $1.64 per share. This compares to earnings of $1.55 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.14%. A quarter ago, it was expected that this holding company for First Financial Bank would post earnings of $1.69 per share when it actually produced earnings of $1.81, delivering a surprise of +7.1%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
First Financial Corp., which belongs to the Zacks Banks - Midwest industry, posted revenues of $68.15 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.26%. This compares to year-ago revenues of $62.49 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
First Financial Corp. shares have added about 10.8% since the beginning of the year versus the S&P 500's gain of 4.8%.
What's Next for First Financial Corp.?While First Financial Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for First Financial Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.69 on $69.5 million in revenues for the coming quarter and $7.05 on $281.2 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, First Interstate BancSystem (FIBK - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on April 29.
This holding company for First Interstate Bank is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of +22.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
First Interstate BancSystem's revenues are expected to be $245.24 million, down 0.7% from the year-ago quarter.
BILLINGS, Mont.--(BUSINESS WIRE)--First Interstate BancSystem, Inc. (NASDAQ: FIBK) (the “Company”) today reported financial results for the first quarter of 2026. For the quarter, the Company reported net income of $60.2 million, or $0.61 per diluted share, which compares to net income of $108.8 million, or $1.08 per diluted share, for the fourth quarter of 2025 and net income of $50.2 million, or $0.49 per diluted share, for the first quarter of 2025.
HIGHLIGHTS
Net interest margin increased to 3.41% for the first quarter of 2026, a 5-basis point increase from the fourth quarter of 2025 and a 22-basis point increase from the first quarter of 2025. Other borrowed funds were zero as of March 31, 2026 and December 31, 2025 as compared to $960.0 million as of March 31, 2025. Net charge-offs decreased $19.7 million to $2.4 million, or an annualized 0.06% of average loans outstanding, as of March 31, 2026, from $22.1 million, or an annualized 0.56% of average loans outstanding, as of December 31, 2025, and decreased $6.6 million from $9.0 million, or an annualized 0.21% of average loans outstanding, as of March 31, 2025. Criticized loans decreased $18.6 million to $1,033.2 million as of March 31, 2026, compared to $1,051.8 million as of December 31, 2025, and increased $7.1 million, compared to $1,026.1 million as of March 31, 2025. Non-performing assets increased $24.2 million, or 17.5%, to $162.5 million as of March 31, 2026, from $138.3 million as of December 31, 2025 and decreased $35.9 million, or 18.1%, from $198.4 million as of March 31, 2025. Total deposits decreased $205.3 million to $21,883.0 million as of March 31, 2026, compared to $22,088.3 million as of December 31, 2025 primarily due to decreases in all deposit categories except for savings deposits during the first quarter. Total deposits decreased $849.8 million, or 3.7% from March 31, 2025 with decreases in all deposit categories except for savings deposits primarily driven by the Arizona and Kansas branch sales which consisted of $641.6 million of deposits. During the first quarter of 2026, the Company repurchased 2.39 million shares of common stock for a total repurchase of approximately $84.0 million, in addition to the Company’s repurchase of approximately 3.65 million shares of common stock through December 31, 2025 for a total repurchase of approximately $117.6 million. On January 27, 2026, the board of directors authorized an increase to the repurchase program of an additional $150.0 million, or a total of $300.0 million authorized since its adoption in August of 2025. Common equity tier 1 capital ratio decreased 8 basis points during the first quarter of 2026 to 14.30%, compared to the fourth quarter of 2025, primarily as a result of shares repurchased during first quarter, partially offset by lower risk-weighted assets primarily driven by lower loan balances. “We are pleased to see continued improvement in our net interest margin and continue to execute on our previously announced share repurchase authorization,” said James A Reuter, President and Chief Executive Officer of the Company. “We are encouraged with the underlying momentum in the business as we enter the second quarter, with a strong commercial pipeline and ongoing fixed asset repricing supporting our confidence in continued earnings improvement.”
DIVIDEND DECLARATION
On April 28, 2026, the Company’s board of directors declared a dividend of $0.47 per common share, payable on May 21, 2026, to common stockholders of record as of May 11, 2026. The dividend equates to a 5.3% annualized yield based on the $35.76 per share average closing price of the Company’s common stock as reported on NASDAQ during the first quarter of 2026.
NET INTEREST INCOME
Net interest income decreased $5.7 million to $200.7 million during the first quarter of 2026, compared to net interest income of $206.4 million during the fourth quarter of 2025. Net interest income decreased $4.3 million, or 2.1%, during the first quarter of 2026 compared to the first quarter of 2025. The quarterly decline from the fourth quarter of 2025 was primarily driven by lower interest income due to reduced loan yields and balances, and fewer accrual days, partially offset by higher investment balances and yields and lower interest expense due to reduced deposit balances and rates. Year-over-year lower interest earning assets and interest bearing liabilities were partially influenced by the reduction in loans and deposits related to the sale of the Arizona and Kansas branches during the fourth quarter of 2025, which resulted in a reduction of net interest income, in the first quarter of 2026.
Interest accretion attributable to the fair value of acquired loans, related to prior acquisitions, contributed to net interest income during the first quarter of 2026, the fourth quarter of 2025, and the first quarter of 2025, in the amounts of $3.1 million, $2.6 million, and $4.7 million, respectively.
Net interest margin ratio was 3.41% for the first quarter of 2026, compared to 3.36% during the fourth quarter of 2025, and 3.19% during the first quarter of 2025. Net FTE (fully-taxable equivalent) interest margin ratio1 was 3.43% for the first quarter of 2026, compared to 3.38% during the fourth quarter of 2025, and 3.22% during the first quarter of 2025. Excluding interest accretion from the fair value of acquired loans, the adjusted net FTE interest margin ratio1, was 3.38%, an increase of 4 basis points from the prior quarter, primarily driven by higher yields on higher average investment security balances and lower rates on lower interest bearing deposits, partially offset by lower loan yields on lower average loan balances. Excluding interest accretion from the fair value of acquired loans, on a year-over-year basis, the adjusted net FTE interest margin ratio increased 24 basis points, primarily as a result of lower interest expense resulting from decreased other borrowed funds balances.
PROVISION FOR CREDIT LOSSES
During the first quarter of 2026, the Company recorded a provision for credit losses of $6.7 million. This compares to a provision for credit losses of $7.1 million and $20.0 million during the fourth quarter of 2025 and the first quarter of 2025, respectively.
For the first quarter of 2026, net loan charge-offs were $2.4 million, or an annualized 0.06% of average loans outstanding, compared to net loan charge-offs of $22.1 million, or an annualized 0.56% of average loans outstanding, for the fourth quarter of 2025 and net loan charge-offs of $9.0 million, or an annualized 0.21% of average loans outstanding, for the first quarter of 2025. Net loan charge-offs in the first quarter of 2026 were composed of charge-offs of $6.5 million offset by recoveries of $4.1 million. Net loan charge-offs in the fourth quarter of 2025 were composed of charge-offs of $24.5 million, primarily related to one loan of $15.8 million, which were offset by recoveries of $2.4 million. Net loan charge-offs in the first quarter of 2025 were composed of charge-offs of $10.8 million, which were offset by recoveries of $1.8 million.
The Company’s allowance for credit losses as a percentage of period-end loans held for investment was 1.33% at March 31, 2026, compared to 1.26% at December 31, 2025 and 1.24% at March 31, 2025. Coverage of non-performing loans decreased to 125.6% at March 31, 2026, compared to 141.9% at December 31, 2025 and increased from 110.5% at March 31, 2025.
NONINTEREST INCOME
For the Quarter Ended
Mar 31,
2026
Dec 31,
2025
$ Change
% Change
Mar 31,
2025
$ Change
% Change
(Dollars in millions)
Payment services revenues
$
15.6
$
16.2
$
(0.6
)
(3.7
)%
$
17.1
$
(1.5
)
(8.8
)%
Mortgage banking revenues
1.3
1.1
0.2
18.2
1.4
(0.1
)
(7.1
)
Wealth management revenues
10.5
10.7
(0.2
)
(1.9
)
9.8
0.7
7.1
Service charges on deposit accounts
6.5
6.5
—
—
6.6
(0.1
)
(1.5
)
Other service charges, commissions, and fees
2.1
2.3
(0.2
)
(8.7
)
2.3
(0.2
)
(8.7
)
Other income
5.1
69.8
(64.7
)
(92.7
)
4.8
0.3
6.3
Total noninterest income
$
41.1
$
106.6
$
(65.5
)
(61.4
)%
$
42.0
$
(0.9
)
(2.1
)%
Noninterest income was $41.1 million for the first quarter of 2026, decreasing $65.5 million compared to the fourth quarter of 2025 and decreasing $0.9 million compared to the first quarter of 2025. The decrease from the fourth quarter of 2025 was primarily due to the $62.7 million gain recorded in other income from the sale of the Arizona and Kansas branches during the fourth quarter of 2025.
Payment services revenues decreased $0.6 million and $1.5 million during the first quarter of 2026 compared to the fourth quarter of 2025 and the first quarter of 2025, respectively. The year-over-year decrease was mainly the result of lower consumer credit card interchange during the first quarter of 2026 as compared to the first quarter of 2025, related to the outsourcing of consumer credit cards in the second quarter of 2025.
NONINTEREST EXPENSE
For the Quarter Ended
Mar 31,
2026
Dec 31,
2025
$ Change
% Change
Mar 31,
2025
$ Change
% Change
(Dollars in millions)
Salaries and wages
$
68.5
$
74.8
$
(6.3
)
(8.4
)%
$
68.6
$
(0.1
)
(0.1
)%
Employee benefits
21.2
18.5
2.7
14.6
20.0
1.2
6.0
Occupancy and equipment
18.6
19.6
(1.0
)
(5.1
)
18.7
(0.1
)
(0.5
)
Other intangible amortization
3.3
3.4
(0.1
)
(2.9
)
3.4
(0.1
)
(2.9
)
Other expenses
47.1
50.4
(3.3
)
(6.5
)
49.4
(2.3
)
(4.7
)
Other real estate owned expense, net
(1.1
)
—
(1.1
)
NM
0.5
(1.6
)
NM
Total noninterest expense
$
157.6
$
166.7
$
(9.1
)
(5.5
)%
$
160.6
$
(3.0
)
(1.9
)%
The Company’s noninterest expense was $157.6 million for the first quarter of 2026, a decrease of $9.1 million from the fourth quarter of 2025 and a decrease of $3.0 million from the first quarter of 2025.
Salary and wages expense decreased $6.3 million to $68.5 million during the first quarter of 2026 compared to the fourth quarter of 2025, primarily due to lower short-term incentive accruals of $2.9 million and lower severance accruals of $2.9 million during the first quarter of 2026. Salaries and wages expense decreased $0.1 million to $68.5 million during the first quarter of 2026 compared to $68.6 million during the first quarter of 2025.
Employee benefit expenses increased $2.7 million to $21.2 million during the first quarter of 2026, compared to $18.5 million during the fourth quarter of 2025, primarily due to the seasonal reset of payroll taxes, partially offset by lower long-term incentives and medical insurance costs. Employee benefit expenses increased $1.2 million from $20.0 million during the first quarter of 2025, primarily due to higher health insurance costs of $3.1 million, partially offset by $1.6 million of lower long-term incentive accruals during the first quarter of 2026.
Occupancy and equipment expenses decreased $1.0 million to $18.6 million during the first quarter of 2026, compared to $19.6 million during the fourth quarter of 2025, primarily due to higher depreciation expense as a result of the impairments in the fourth quarter of 2025 for the pending branch closures that occurred in the first quarter of 2026. Occupancy and equipment expenses increased $0.1 million during the first quarter of 2026 from $18.7 million during the first quarter of 2025.
Other expenses decreased $3.3 million during the first quarter of 2026 compared to the fourth quarter of 2025, primarily due to a decrease of $1.5 million in professional fees and decreases in donations and various other expense categories. Other expenses decreased $2.3 million during the first quarter of 2026 compared to the first quarter of 2025, primarily due to a decrease in FDIC special assessment accruals.
Other real estate owned expense, net decreased $1.1 million during the first quarter of 2026 compared to the fourth quarter of 2025 and decreased $1.6 million during the first quarter of 2026 compared to the first quarter of 2025, primarily due to a positive fair value adjustment to a commercial property.
BALANCE SHEET
Total assets decreased $213.8 million, or 0.8%, to $26,426.8 million as of March 31, 2026, from $26,640.6 million as of December 31, 2025, primarily due to decreases in loans and cash and cash equivalents, which were partially offset by an increase in investment securities. Total assets decreased $1,853.0 million from $28,279.8 million as of March 31, 2025, primarily due to a decrease in loans which was partially driven by the sale of the branches in Arizona and Kansas during the fourth quarter of 2025. The funds from the loan declines were partially used to pay down debt, which were partially offset by increases in investment securities and cash and cash equivalents.
Investment securities increased $379.8 million to $8,010.0 million as of March 31, 2026, from $7,630.2 million as of December 31, 2025, primarily resulting from purchases of investment securities, partially offset by pay-downs, maturities, called securities, and a $23.5 million decrease in fair market values during the first quarter. Investment securities increased $506.2 million from $7,503.8 million as of March 31, 2025, primarily resulting from purchases of investment securities and a $93.6 million increase in fair market values during the period, partially offset by pay-downs, maturities, and called securities.
The following table presents the composition and comparison of loans held for investment as of the quarters-ended:
Mar 31,
2026
Dec 31,
2025
$ Change
% Change
Mar 31,
2025
$ Change
% Change
Real Estate:
Commercial
$
8,040.5
$
8,144.4
$
(103.9
)
(1.3
)%
$
9,196.1
$
(1,155.6
)
(12.6
)%
Construction
669.1
837.2
(168.1
)
(20.1
)
1,097.3
(428.2
)
(39.0
)
Residential
2,084.3
2,108.8
(24.5
)
(1.2
)
2,161.4
(77.1
)
(3.6
)
Agricultural
619.2
629.0
(9.8
)
(1.6
)
678.1
(58.9
)
(8.7
)
Total real estate
11,413.1
11,719.4
(306.3
)
(2.6
)
13,132.9
(1,719.8
)
(13.1
)
Consumer:
Indirect
419.4
477.5
(58.1
)
(12.2
)
680.2
(260.8
)
(38.3
)
Direct and advance lines
128.0
131.5
(3.5
)
(2.7
)
132.4
(4.4
)
(3.3
)
Credit card
—
—
—
—
74.2
(74.2
)
(100.0
)
Total consumer
547.4
609.0
(61.6
)
(10.1
)
886.8
(339.4
)
(38.3
)
Commercial
2,342.9
2,359.6
(16.7
)
(0.7
)
2,770.6
(427.7
)
(15.4
)
Agricultural
426.8
520.2
(93.4
)
(18.0
)
595.8
(169.0
)
(28.4
)
Other, including overdrafts
5.8
1.7
4.1
241.2
1.8
4.0
222.2
Deferred loan fees and costs
(7.6
)
(8.3
)
0.7
(8.4
)
(10.6
)
3.0
(28.3
)
Loans held for investment, net of deferred loan fees and costs
$
14,728.4
$
15,201.6
$
(473.2
)
(3.1
)%
$
17,377.3
$
(2,648.9
)
(15.2
)%
The decline in loans was impacted by $58.1 million of continued amortization of the indirect portfolio for which the Company stopped originating loans during the first quarter of 2025, agricultural loan payoffs, and other loan paydowns and payoffs during the first quarter of 2026.
The ratio of loans held for investment to deposits was 67.3%, as of March 31, 2026, compared to 68.8% as of December 31, 2025 and 76.4% as of March 31, 2025.
Total deposits decreased $205.3 million to $21,883.0 million as of March 31, 2026, from $22,088.3 million as of December 31, 2025, primarily due to decreases in all deposit categories except for savings deposits during the first quarter. Total deposits decreased $849.8 million, or 3.7%, from $22,732.8 million as of March 31, 2025, with decreases in all deposit categories except for savings deposits during the first quarter of 2026, primarily driven by the Arizona and Kansas branch sales during the fourth quarter of 2025 which consisted of $641.6 million of deposits.
Other borrowed funds is composed of variable-rate, overnight and fixed-rate borrowings with remaining contractual tenors of up to one year through the Federal Home Loan Bank. Other borrowed funds were zero as of March 31, 2026 and December 31, 2025, respectively. Other borrowed funds decreased $960.0 million from March 31, 2025. The decrease was funded by cash flows from paydowns and maturities of investment securities and loans.
The Company is considered to be “well-capitalized” as of March 31, 2026, having exceeded all regulatory capital adequacy requirements. During the first quarter of 2026, the Company paid regular common stock dividends of approximately $45.7 million, or $0.47 per share and repurchased approximately 2.4 million shares of common stock at a weighted average price of $35.09 per share pursuant to its stock repurchase program.
CREDIT QUALITY
As of March 31, 2026, non-performing assets increased $24.2 million, or 17.5%, to $162.5 million, compared to $138.3 million as of December 31, 2025, primarily as a result of an increase in non-accrual loans related to a single client relationship comprised of $20.2 million in commercial and commercial real estate non-accrual loans and an increase of $3.2 million in OREO.
Criticized loans decreased $18.6 million, or 1.8%, to $1,033.2 million as of March 31, 2026, from $1,051.8 million as of December 31, 2025, primarily as a result of upgrades as well as paydowns and payoffs in the portfolio.
NON-GAAP FINANCIAL MEASURES
In addition to results presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, this press release contains the following non-GAAP financial measures that management uses to evaluate our performance relative to our capital adequacy standards: (i) tangible common stockholders’ equity; (ii) tangible assets; (iii) tangible book value per common share; (iv) tangible common stockholders’ equity to tangible assets; (v) average tangible common stockholders’ equity; (vi) return on average tangible common stockholders’ equity; (vii) net FTE interest income; (viii) net FTE interest margin ratio; (ix) adjusted net FTE interest income; and (x) adjusted net FTE interest margin ratio. Tangible common stockholders’ equity is calculated as total common stockholders’ equity less goodwill and other intangible assets (excluding mortgage servicing rights). Tangible assets are calculated as total assets less goodwill and other intangible assets (excluding mortgage servicing rights). Tangible book value per common share is calculated as tangible common stockholders’ equity divided by common shares outstanding. Tangible common stockholders’ equity to tangible assets is calculated as tangible common stockholders’ equity divided by tangible assets. Average tangible common stockholders’ equity is calculated as average total stockholders’ equity less average goodwill and other intangible assets (excluding mortgage servicing rights). Return on average tangible common stockholders’ equity is calculated as annualized net income available to common shareholders divided by average tangible common stockholders’ equity. Net FTE interest income is calculated as net interest income, adjusted to include its FTE interest income. Net FTE interest margin ratio is calculated as net FTE interest income divided by average interest earning assets. Adjusted net FTE interest income is calculated as net FTE interest income less purchase accounting interest accretion on acquired loans. Adjusted net FTE interest margin ratio is calculated as annualized adjusted net FTE interest income divided by average interest earning assets. These non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies because other companies may not calculate these non-GAAP measures in the same manner. They also should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP.
The Company adjusts the most directly comparable capital adequacy GAAP financial measures to the non-GAAP financial measures described in subclauses (i) through (vi) above to exclude goodwill and other intangible assets (except mortgage servicing rights), adjusts its GAAP net interest income to include fully taxable equivalent adjustments and further adjusts its net interest income on a fully taxable equivalent basis to exclude purchase accounting interest accretion. Management believes these non-GAAP financial measures, which are intended to complement the capital ratios defined by banking regulators and to present on a consistent basis our and our acquired companies’ organic continuing operations without regard to acquisition costs and other adjustments that we consider to be unpredictable and dependent on a significant number of factors that are outside our control, are useful to investors in evaluating the Company’s performance because, as a general matter, they either do not represent an actual cash expense and are inconsistent in amount and frequency depending upon the timing and size of our acquisitions (including the size, complexity and/or volume of past acquisitions, which may drive the magnitude of acquisition related costs, but may not be indicative of the size, complexity and/or volume of future acquisitions or related costs), or they cannot be anticipated or estimated in a particular period (in particular as it relates to unexpected recovery amounts). This impacts the ratios that are important to analysts and allows investors to compare certain aspects of the Company’s capitalization to other companies.
See the “Non-GAAP Financial Measures” table included herein and the textual discussion for a reconciliation of the above-described non-GAAP financial measures to their most directly comparable GAAP financial measures.
Cautionary Note Regarding Forward-Looking Statements and Factors that Could Affect Future Results
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. Any statements about our plans, objectives, expectations, strategies, beliefs, or future performance, financial condition, results of operations, investment portfolio, market position, or events constitute forward-looking statements. Such statements are identified by words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trends,” “objectives,” “continues”, “projected,” as well as the negative forms of those words or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other important factors that could cause actual results to differ materially from any results, performance or events expressed or implied by such forward-looking statements. Furthermore, the following factors, among others, may cause actual results to differ materially from current expectations in the forward-looking statements, including those set forth in this press release:
new or changes in existing governmental regulations or in the way such regulations are interpreted or enforced; negative developments in the banking industry and increased regulatory scrutiny; tax legislative initiatives or assessments; more stringent capital requirements, to the extent they may become applicable to us; changes in accounting standards; any failure to comply with applicable laws and regulations, including, but not limited to, the Community Reinvestment Act and fair lending laws, the USA PATRIOT ACT of 2001, the Office of Foreign Asset Control guidelines and requirements, the Bank Secrecy Act, and the related Financial Crimes Enforcement Network and Federal Financial Institutions Examination Council Guidelines and regulations; federal deposit insurance assessment rate increases; lending risks and risks associated with loan portfolio concentrations; a decline in economic conditions that could reduce demand for our products and services and negatively impact the credit quality of loans; credit losses on loans exceeding estimates; potential effects on the U.S. economy resulting from the implementation of governmental policies, including tax regulations and changes to United States trade policies, including the imposition of tariffs and retaliatory tariffs and geopolitical uncertainty; the soundness of other financial institutions; the ability to meet cash flow needs and availability of financing sources for working capital and other needs; a loss of deposits or a change in product mix that increases the Company’s funding costs; inability to access funding or to monetize liquid assets; changes in interest rates; interest rate effect on the value of our investment securities; cybersecurity risks, including business disruptions from denial-of-service attacks, network intrusions, business e-mail compromise, and other malicious behavior that could result in the disclosure of confidential information; privacy, information security, and data protection laws, rules, and regulations that affect or limit how we collect and use personal information or otherwise have an adverse effect on us; the potential impairment of our goodwill and other intangible assets; our reliance on third parties that provide key components of our business infrastructure; events that may tarnish our reputation; mainstream and social media contagion; the loss of the services of key members of our management team and directors; our ability to attract and retain qualified employees to operate our business; costs associated with repossessed properties, including potential environmental remediation; the effectiveness of our operational processes, policies and procedures, and internal control over financial reporting; our ability to implement technology-facilitated products and services or be successful in marketing these products and services to our clients; the development and use of artificial intelligence ("AI"); risks related to acquisitions, mergers, strategic partnerships, divestitures, and other transactions; competition from new or existing financial institutions and non-banks; investing in technology; incurrence of significant costs related to mergers and related integration activities; the volatility in the price and trading volume of our common stock; “anti-takeover” provisions in our certificate of incorporation and regulations, which may make it more difficult for a third party to acquire control of us even in circumstances that could be deemed beneficial to stockholders; changes in our dividend policy or our ability to pay dividends; the possibility that we may fail to realize the anticipated benefits of our stock repurchase program; our common stock not being an insured deposit; the potential dilutive effect of future equity issuances; the subordination of our common stock to our existing and future indebtedness; the effect of global conditions, earthquakes, volcanoes, tsunamis, floods, fires, drought, and other natural catastrophic events; and the impact of climate change and environmental sustainability matters. The foregoing factors are not necessarily all of the factors that could cause our actual results, performance, or achievements to differ materially from expectations. Other unknown or unpredictable factors also could harm our results.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and included and described in more detail in our periodic reports filed with the Securities and Exchange Commission, or SEC, under the Securities Exchange Act of 1934, as amended, under the caption “Risk Factors.” Interested parties are urged to read in their entirety such risk factors prior to making any investment decision with respect to the Company. Forward-looking statements speak only as of the date they are made, and we do not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
First Quarter 2026 Conference Call for Investors
First Interstate BancSystem, Inc. will host a conference call to discuss the results for the first quarter of 2026 at 9:30 a.m. Eastern Time (7:30 a.m. Mountain Time) on Thursday, April 30, 2026. The conference call will be accessible by telephone and through the Internet. Participants may join the call by dialing 1-800-715-9871; the access code is 5906009. To participate via the Internet, visit www.FIBK.com. The call will be recorded and made available for replay on April 30, 2026, after 1:00 p.m. Eastern Time (11:00 a.m. Mountain Time), through May 30, 2026, prior to 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time), by dialing 1-800-770-2030; the access code is 5906009. The call will also be archived on our website, www.FIBK.com, for one year.
About First Interstate BancSystem, Inc.
First Interstate BancSystem, Inc. is a financial and bank holding company focused on community banking. Incorporated in 1971 and headquartered in Billings, Montana, the Company operates banking offices, including detached drive-up facilities, in communities across Colorado, Idaho, Iowa, Missouri, Montana, Nebraska, Oregon, South Dakota, Washington, and Wyoming, in addition to offering online and mobile banking services. Through our bank subsidiary, First Interstate Bank, the Company delivers a comprehensive range of banking products and services to individuals, businesses, municipalities, and others throughout the Company’s market areas.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Quarter Ended
% Change
(In millions, except % and per share data)
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
1Q26 vs
4Q25
1Q26 vs
1Q25
Net interest income
$
200.7
$
206.4
$
206.8
$
207.2
$
205.0
(2.8
)%
(2.1
)%
Net interest income on a fully-taxable equivalent ("FTE") basis
202.0
207.7
208.2
208.6
206.6
(2.7
)
(2.2
)
Provision for (reduction of) credit losses
6.7
7.1
—
(0.3
)
20.0
(5.6
)
(66.5
)
Noninterest income:
Payment services revenues
15.6
16.2
16.8
17.8
17.1
(3.7
)
(8.8
)
Mortgage banking revenues
1.3
1.1
1.5
1.8
1.4
18.2
(7.1
)
Wealth management revenues
10.5
10.7
10.4
9.7
9.8
(1.9
)
7.1
Service charges on deposit accounts
6.5
6.5
7.0
6.9
6.6
—
(1.5
)
Other service charges, commissions, and fees
2.1
2.3
2.1
2.1
2.3
(8.7
)
(8.7
)
Total fee-based revenues
36.0
36.8
37.8
38.3
37.2
(2.2
)
(3.2
)
Other income
5.1
69.8
5.9
2.8
4.8
(92.7
)
6.3
Total noninterest income
41.1
106.6
43.7
41.1
42.0
(61.4
)
(2.1
)
Noninterest expense:
Salaries and wages
68.5
74.8
66.2
65.0
68.6
(8.4
)
(0.1
)
Employee benefits
21.2
18.5
18.2
17.9
20.0
14.6
6.0
Occupancy and equipment
18.6
19.6
18.5
18.6
18.7
(5.1
)
(0.5
)
Other intangible amortization
3.3
3.4
3.4
3.4
3.4
(2.9
)
(2.9
)
Other expenses
47.1
50.4
51.6
50.2
49.4
(6.5
)
(4.7
)
Other real estate owned expense, net
(1.1
)
—
—
—
0.5
NM
NM
Total noninterest expense
157.6
166.7
157.9
155.1
160.6
(5.5
)
(1.9
)
Income before income tax
77.5
139.2
92.6
93.5
66.4
(44.3
)
16.7
Provision for income tax
17.3
30.4
21.2
21.8
16.2
(43.1
)
6.8
Net income
$
60.2
$
108.8
$
71.4
$
71.7
$
50.2
(44.7
)%
19.9
%
Weighted-average basic shares outstanding
98,881
100,791
103,154
103,261
103,092
(1.9
)%
(4.1
)%
Weighted-average diluted shares outstanding
99,241
101,096
103,387
103,364
103,416
(1.8
)
(4.0
)
Earnings per share - basic
$
0.61
$
1.08
$
0.69
$
0.69
$
0.49
(43.5
)
24.5
Earnings per share - diluted
0.61
1.08
0.69
0.69
0.49
(43.5
)
24.5
NM - not meaningful
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES|
Consolidated Balance Sheets
(Unaudited)
% Change
(In millions, except % and per share data)
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
1Q26 vs
4Q25
1Q26 vs
1Q25
Assets:
Cash and due from banks
$
321.7
$
358.2
$
382.7
$
436.6
$
390.4
(10.2
)%
(17.6
)%
Interest bearing deposits in banks
886.9
951.4
1,066.4
653.5
480.9
(6.8
)
84.4
Federal funds sold
0.1
0.1
0.1
0.1
0.1
—
—
Cash and cash equivalents
1,208.7
1,309.7
1,449.2
1,090.2
871.4
(7.7
)
38.7
Investment securities, net
8,010.0
7,630.2
7,305.8
7,312.2
7,503.8
5.0
6.7
Investment in Federal Home Loan Bank and Federal Reserve Bank stock
106.3
106.3
106.8
118.1
150.1
NM
(29.2
)
Loans held for sale, at fair value
70.8
73.6
305.6
335.2
0.4
(3.8
)
NM
Loans held for investment
14,728.4
15,201.6
15,834.4
16,353.4
17,377.3
(3.1
)
(15.2
)
Allowance for credit losses
(195.8
)
(191.4
)
(205.8
)
(209.6
)
(215.3
)
2.3
(9.1
)
Net loans held for investment
14,532.6
15,010.2
15,628.6
16,143.8
17,162.0
(3.2
)
(15.3
)
Goodwill and intangible assets (excluding mortgage servicing rights)
1,178.9
1,182.2
1,185.5
1,188.9
1,192.4
(0.3
)
(1.1
)
Company owned life insurance
524.6
523.0
520.2
516.7
514.2
0.3
2.0
Premises and equipment
403.1
406.6
415.1
413.0
428.9
(0.9
)
(6.0
)
Other real estate owned
6.6
3.4
3.4
3.4
3.5
94.1
88.6
Mortgage servicing rights
22.5
23.1
23.8
24.4
24.9
(2.6
)
(9.6
)
Other assets
362.7
372.3
388.9
420.5
428.2
(2.6
)
(15.3
)
Total assets
$
26,426.8
$
26,640.6
$
27,332.9
$
27,566.4
$
28,279.8
(0.8
)%
(6.6
)%
Liabilities and stockholders' equity:
Deposits
$
21,883.0
$
22,088.3
$
22,605.0
$
22,630.6
$
22,732.8
(0.9
)%
(3.7
)%
Securities sold under repurchase agreements
476.1
479.6
485.2
509.3
528.0
(0.7
)
(9.8
)
Other borrowed funds
—
—
—
250.0
960.0
—
(100.0
)
Long-term debt
146.7
146.3
146.2
252.0
130.2
0.3
12.7
Subordinated debentures held by subsidiary trusts
149.9
149.8
163.1
163.1
163.1
0.1
(8.1
)
Other liabilities
412.6
329.6
484.7
339.6
404.4
25.2
2.0
Total liabilities
23,068.3
23,193.6
23,884.2
24,144.6
24,918.5
(0.5
)
(7.4
)
Stockholders' equity:
Common stock
2,265.5
2,350.9
2,439.3
2,463.5
2,460.2
(3.6
)
(7.9
)
Retained earnings
1,288.7
1,274.2
1,213.5
1,191.2
1,168.6
1.1
10.3
Accumulated other comprehensive loss
(195.7
)
(178.1
)
(204.1
)
(232.9
)
(267.5
)
9.9
(26.8
)
Total stockholders' equity
3,358.5
3,447.0
3,448.7
3,421.8
3,361.3
(2.6
)
(0.1
)
Total liabilities and stockholders' equity
$
26,426.8
$
26,640.6
$
27,332.9
$
27,566.4
$
28,279.8
(0.8
)%
(6.6
)%
Common shares outstanding at period end
98,820
101,106
103,967
104,874
104,910
(2.3
)%
(5.8
)%
Book value per common share at period end
$
33.99
$
34.09
$
33.17
$
32.63
$
32.04
(0.3
)
6.1
Tangible book value per common share at period end**
22.06
22.40
21.77
21.29
20.67
(1.5
)
6.7
**Non-GAAP financial measure - see “Non-GAAP Financial Measures” included herein for a reconciliation of book value per common share (GAAP) at period end to tangible book value per common share (non-GAAP) at period end.
NM - not meaningful
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Loans and Deposits
(Unaudited)
% Change
(In millions, except %)
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
1Q26 vs
4Q25
1Q26 vs
1Q25
Loans held for investment:
Real Estate:
Commercial
$
8,040.5
$
8,144.4
$
8,496.4
$
8,750.9
$
9,196.1
(1.3
)%
(12.6
)%
Construction
669.1
837.2
960.8
1,004.6
1,097.3
(20.1
)
(39.0
)
Residential
2,084.3
2,108.8
2,136.0
2,157.5
2,161.4
(1.2
)
(3.6
)
Agricultural
619.2
629.0
623.0
635.6
678.1
(1.6
)
(8.7
)
Total real estate
11,413.1
11,719.4
12,216.2
12,548.6
13,132.9
(2.6
)
(13.1
)
Consumer:
Indirect
419.4
477.5
540.3
607.1
680.2
(12.2
)
(38.3
)
Direct
128.0
131.5
134.3
134.4
132.4
(2.7
)
(3.3
)
Credit card
—
—
—
—
74.2
—
(100.0
)
Total consumer
547.4
609.0
674.6
741.5
886.8
(10.1
)
(38.3
)
Commercial
2,342.9
2,359.6
2,447.4
2,529.9
2,770.6
(0.7
)
(15.4
)
Agricultural
426.8
520.2
495.5
541.4
595.8
(18.0
)
(28.4
)
Other
5.8
1.7
10.2
2.0
1.8
241.2
222.2
Deferred loan fees and costs
(7.6
)
(8.3
)
(9.5
)
(10.0
)
(10.6
)
(8.4
)
(28.3
)
Loans held for investment
$
14,728.4
$
15,201.6
$
15,834.4
$
16,353.4
$
17,377.3
(3.1
)%
(15.2
)%
Deposits:
Noninterest bearing
$
5,229.0
$
5,286.8
$
5,555.7
$
5,579.0
$
5,590.2
(1.1
)%
(6.5
)%
Interest bearing:
Demand
6,257.3
6,319.7
6,324.7
6,465.4
6,439.2
(1.0
)
(2.8
)
Savings
7,961.7
7,843.5
7,954.0
7,789.6
7,876.4
1.5
1.1
Time, $250 thousand and over
694.7
792.9
851.1
837.3
823.4
(12.4
)
(15.6
)
Time, other
1,740.3
1,845.4
1,919.5
1,959.3
2,003.6
(5.7
)
(13.1
)
Total interest bearing
16,654.0
16,801.5
17,049.3
17,051.6
17,142.6
(0.9
)
(2.9
)
Total deposits
$
21,883.0
$
22,088.3
$
22,605.0
$
22,630.6
$
22,732.8
(0.9
)%
(3.7
)%
Total core deposits (1)
$
21,188.3
$
21,295.4
$
21,753.9
$
21,793.3
$
21,909.4
(0.5
)%
(3.3
)%
(1) Core deposits are defined as total deposits less time deposits, $250 thousand and over, and brokered deposits.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Credit Quality
(Unaudited)
% Change
(In millions, except %)
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
1Q26 vs
4Q25
1Q26 vs
1Q25
Allowance for Credit Losses:
Allowance for credit losses
$
195.8
$
191.4
$
205.8
$
209.6
$
215.3
2.3
%
(9.1
)%
As a percentage of loans held for investment
1.33
%
1.26
%
1.30
%
1.28
%
1.24
%
As a percentage of non-accrual loans
126.49
143.37
113.33
108.77
112.19
Net loan charge-offs during quarter
$
2.4
$
22.1
$
2.3
$
5.8
$
9.0
(89.1
)%
(73.3
)%
Annualized as a percentage of average loans
0.06
%
0.56
%
0.06
%
0.14
%
0.21
%
Non-Performing Assets:
Non-accrual loans
$
154.8
$
133.5
$
181.6
$
192.7
$
191.9
16.0
%
(19.3
)%
Accruing loans past due 90 days or more
1.1
1.4
0.6
1.4
3.0
(21.4
)
(63.3
)
Total non-performing loans
155.9
134.9
182.2
194.1
194.9
15.6
(20.0
)
Other real estate owned
6.6
3.4
3.4
3.4
3.5
94.1
88.6
Total non-performing assets
$
162.5
$
138.3
$
185.6
$
197.5
$
198.4
17.5
%
(18.1
)%
Non-performing assets as a percentage of:
Loans held for investment and OREO
1.10
%
0.91
%
1.17
%
1.21
%
1.14
%
Total assets
0.61
0.52
0.68
0.72
0.70
Non-accrual loans to loans held for investment
1.05
0.88
1.15
1.18
1.10
Allowance for credit losses coverage of non-performing loans
125.59
141.88
112.95
107.99
110.47
Accruing Loans 30-89 Days Past Due
$
71.9
$
82.7
$
28.5
$
52.2
$
90.2
(13.1
)%
(20.3
)%
Criticized Loans:
Special Mention
$
544.1
$
566.3
$
697.5
$
744.9
$
543.6
(3.9
)%
0.1
%
Substandard
421.1
441.4
416.9
427.8
469.5
(4.6
)
(10.3
)
Doubtful
68.0
44.1
49.7
30.3
13.0
54.2
423.1
Total
$
1,033.2
$
1,051.8
$
1,164.1
$
1,203.0
$
1,026.1
(1.8
)%
0.7
%
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Selected Ratios - Annualized
(Unaudited)
Tangible common stockholders' equity to tangible assets
8.63
%
8.90
%
8.66
%
8.47
%
8.01
%
Return on average tangible common stockholders' equity
10.77
18.79
12.53
13.01
9.42
Consolidated Capital Ratios
Total risk-based capital to total risk-weighted assets
17.07
%
*
17.06
%
16.62
%
16.49
%
14.93
%
Tier 1 risk-based capital to total risk-weighted assets
14.30
*
14.38
13.90
13.43
12.53
Tier 1 common capital to total risk-weighted assets
14.30
*
14.38
13.90
13.43
12.53
Leverage Ratio
9.56
*
9.61
9.60
9.37
9.06
*Preliminary estimate - may be subject to change. The regulatory capital ratios presented include the assumption of the transitional method as a result of legislation by the United States Congress to provide relief for the economy and financial institutions in the United States from the COVID‑19 pandemic. The referenced relief ended on December 31, 2024, which allowed a total five-year phase-in of the impact of CECL on capital.
**Non-GAAP financial measures - see “Non-GAAP Financial Measures” included herein for a reconciliation of net interest margin (GAAP) to net FTE interest margin ratio (non-GAAP), book value per common share (GAAP) to tangible book value per common share (non-GAAP), average common stockholders’ equity to average assets (GAAP) to tangible common stockholders’ equity to tangible assets (non-GAAP), and return on average common stockholders’ equity (GAAP) to return on average tangible common stockholders’ equity.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Average Balance Sheets
(Unaudited)
Three Months Ended
March 31, 2026
December 31, 2025
March 31, 2025
(In millions, except %)
Average
Balance
Interest(3)
Average
Rate
Average
Balance
Interest(3)
Average
Rate
Average
Balance
Interest(3)
Average
Rate
Interest earning assets:
Loans (1)
$
15,032.1
$
207.6
5.60
%
$
15,540.5
$
222.0
5.67
%
$
17,668.6
$
243.5
5.59
%
Investment securities
Taxable (2)
7,705.1
55.2
2.91
7,355.2
50.7
2.73
7,464.3
51.3
2.79
Tax-exempt
176.0
0.8
1.84
178.7
0.9
2.00
182.6
0.9
2.00
Investment in FHLB and FRB stock
106.3
1.2
4.58
106.7
1.1
4.09
175.9
2.9
6.69
Interest bearing deposits in banks
848.7
7.8
3.73
1,177.0
11.8
3.98
567.5
6.3
4.50
Federal funds sold
0.1
—
—
0.1
—
—
0.1
—
—
Total interest earning assets
$
23,868.3
$
272.6
4.63
%
$
24,358.2
$
286.5
4.67
%
$
26,059.0
$
304.9
4.75
%
Noninterest earning assets
2,613.2
2,668.6
2,759.9
Total assets
$
26,481.5
$
27,026.8
$
28,818.9
Interest bearing liabilities:
Demand deposits
$
6,199.9
$
12.8
0.84
%
$
6,316.6
$
14.9
0.94
%
$
6,412.7
$
14.4
0.91
%
Savings deposits
7,876.9
32.7
1.68
7,882.6
35.7
1.80
7,800.3
35.7
1.86
Time deposits
2,556.5
19.1
3.03
2,685.8
21.9
3.24
2,863.0
25.0
3.54
Repurchase agreements
479.6
1.0
0.85
496.4
1.2
0.96
533.0
1.2
0.91
Other borrowed funds
—
—
—
—
—
NM
1,533.5
17.5
4.63
Long-term debt
146.5
2.6
7.20
146.3
2.5
6.78
132.0
1.7
5.22
Subordinated debentures held by subsidiary trusts
149.9
2.4
6.49
150.8
2.6
6.84
163.1
2.8
6.96
Total interest bearing liabilities
$
17,409.3
$
70.6
1.64
%
$
17,678.5
$
78.8
1.77
%
$
19,437.6
$
98.3
2.05
%
Noninterest bearing deposits
5,214.2
5,424.3
5,608.2
Other noninterest bearing liabilities
411.4
442.7
418.0
Stockholders’ equity
3,446.6
3,481.3
3,355.1
Total liabilities and stockholders’ equity
$
26,481.5
$
27,026.8
$
28,818.9
Net FTE interest income (non-GAAP)(4)
$
202.0
$
207.7
$
206.6
Less FTE adjustments (3)
(1.3
)
(1.3
)
(1.6
)
Net interest income from consolidated statements of income
$
200.7
$
206.4
$
205.0
Interest rate spread
2.99
%
2.90
%
2.70
%
Net interest margin
3.41
3.36
3.19
Net FTE interest margin ratio (non-GAAP)(4)
3.43
3.38
3.22
Cost of funds, including noninterest bearing demand deposits (5)
1.27
1.35
1.59
(1)
Average loan balances include loans held for sale and loans held for investment, net of deferred fees and costs, which include non-accrual loans. Interest income includes amortization of deferred loan fees net of deferred loan costs, which is not material for the periods presented.
(2)
Includes average balance of unsettled trades on investment securities.
(3)
Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax exempt loans and securities to an FTE basis utilizing a 21% tax rate.
(4)
Non-GAAP financial measure - see “Non-GAAP Financial Measures” included herein for a reconciliation to GAAP measures.
(5)
Calculated by dividing total annualized interest on interest bearing liabilities by the sum of total interest bearing liabilities plus noninterest bearing deposits.
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(Unaudited)
As of or For the Quarter Ended
(In millions, except % and per share data)
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Mar 31,
2025
Total common stockholders' equity (GAAP)
(A)
$
3,358.5
$
3,447.0
$
3,448.7
$
3,421.8
$
3,361.3
Less goodwill and other intangible assets (excluding mortgage servicing rights)
1,178.9
1,182.2
1,185.5
1,188.9
1,192.4
Tangible common stockholders' equity (Non-GAAP)
(B)
$
2,179.6
$
2,264.8
$
2,263.2
$
2,232.9
$
2,168.9
Total assets (GAAP)
$
26,426.8
$
26,640.6
$
27,332.9
$
27,566.4
$
28,279.8
Less goodwill and other intangible assets (excluding mortgage servicing rights)
1,178.9
1,182.2
1,185.5
1,188.9
1,192.4
Tangible assets (Non-GAAP)
(C)
$
25,247.9
$
25,458.4
$
26,147.4
$
26,377.5
$
27,087.4
Average Balances:
Total common stockholders' equity (GAAP)
(D)
$
3,446.6
$
3,481.3
$
3,447.8
$
3,401.1
$
3,355.1
Less goodwill and other intangible assets (excluding mortgage servicing rights)
1,180.3
1,183.7
1,187.1
1,190.5
1,193.9
Average tangible common stockholders' equity (Non-GAAP)
(E)
$
2,266.3
$
2,297.6
$
2,260.7
$
2,210.6
$
2,161.2
Net interest income (GAAP)
(F)
$
200.7
$
206.4
$
206.8
$
207.2
$
205.0
FTE interest income
1.3
1.3
1.4
1.4
1.6
Net FTE interest income (Non-GAAP)
(G)
202.0
207.7
208.2
208.6
206.6
Less purchase accounting accretion on acquired loans
3.1
2.6
3.5
4.2
4.7
Adjusted net FTE interest income (Non-GAAP)
(H)
$
198.9
$
205.1
$
204.7
$
204.4
$
201.9
Average interest earning assets
(I)
$
23,868.3
$
24,358.2
$
24,589.5
$
25,180.1
$
26,059.0
Total quarterly average assets
(J)
26,481.5
27,026.8
27,292.4
27,898.4
28,818.9
Annualized net income available to common shareholders
(K)
244.1
431.7
283.3
287.6
203.6
Common shares outstanding
(L)
98,820
101,106
103,967
104,874
104,910
Return on average assets (GAAP)
(K) / (J)
0.92
%
1.60
%
1.04
%
1.03
%
0.71
%
Return on average common stockholders' equity (GAAP)
(K) / (D)
7.08
12.40
8.22
8.46
6.07
Average common stockholders' equity to average assets (GAAP)
(D) / (J)
13.02
12.88
12.63
12.19
11.64
Book value per common share (GAAP)
(A) / (L)
$
33.99
$
34.09
$
33.17
$
32.63
$
32.04
Tangible book value per common share (Non-GAAP)
(B) / (L)
22.06
22.40
21.77
21.29
20.67
Tangible common stockholders' equity to tangible assets (Non-GAAP)
(B) / (C)
8.63
%
8.90
%
8.66
%
8.47
%
8.01
%
Return on average tangible common stockholders' equity (Non-GAAP)
First Interstate BancSystem (FIBK - Free Report) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.6 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.52%. A quarter ago, it was expected that this holding company for First Interstate Bank would post earnings of $0.64 per share when it actually produced earnings of $1.08, delivering a surprise of +68.75%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
First Interstate BancSystem, which belongs to the Zacks Banks - Midwest industry, posted revenues of $243.1 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.87%. This compares to year-ago revenues of $247 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
First Interstate BancSystem shares have added about 3.1% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for First Interstate BancSystem?While First Interstate BancSystem has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for First Interstate BancSystem was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.66 on $250.3 million in revenues for the coming quarter and $2.71 on $1.01 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Bitcoin Depot Inc. , another stock in the broader Zacks Finance sector, has yet to report results for the quarter ended March 2026.
This company is expected to post quarterly loss of $0.60 per share in its upcoming report, which represents a year-over-year change of -142.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Bitcoin Depot Inc.'s revenues are expected to be $99.95 million, down 39.1% from the year-ago quarter.
For the quarter ended March 2026, First Interstate BancSystem (FIBK - Free Report) reported revenue of $243.1 million, down 1.6% over the same period last year. EPS came in at $0.61, compared to $0.49 in the year-ago quarter.
The reported revenue represents a surprise of -0.87% over the Zacks Consensus Estimate of $245.24 million. With the consensus EPS estimate being $0.60, the EPS surprise was +2.52%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how First Interstate BancSystem performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio: 63.8% compared to the 65.1% average estimate based on three analysts.Net FTE interest margin ratio: 3.4% versus the three-analyst average estimate of 3.4%.Average Balance - Total interest earning assets: $23.87 billion versus the two-analyst average estimate of $24.06 billion.Total non-performing assets: $162.5 million compared to the $126.46 million average estimate based on two analysts.Net charge-offs to average loans: 0.1% versus the two-analyst average estimate of 0.3%.Total noninterest Income: $41.1 million versus the three-analyst average estimate of $42.95 million.Mortgage banking revenues: $1.3 million compared to the $1.53 million average estimate based on two analysts.Service charges on deposit accounts: $6.5 million versus the two-analyst average estimate of $6.59 million.Net interest income on a fully-taxable equivalent basis: $202 million versus the two-analyst average estimate of $201.97 million.Net Interest Income: $200.7 million compared to the $202.24 million average estimate based on two analysts.View all Key Company Metrics for First Interstate BancSystem here>>>
Shares of First Interstate BancSystem have returned +6.8% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
