# First Interstate BancSystem, Inc. (FIBK) Q2 2025 Financial Results Summary
Billings, MT – July 29, 2025 – First Interstate BancSystem, Inc. (NASDAQ: FIBK) today reported financial results for the second quarter of 2025.
## Highlights
– **Net Income**:
– $71.7 million, or $0.69 per diluted share.
– Increase of **42.8%** from Q1 2025 ($50.2 million or $0.49 per share) and a **19.5%** increase from Q2 2024 ($60.0 million or $0.58 per share).
– **Net Interest Margin**:
– Increased to **3.30%**, up **11** basis points from Q1 2025 and **33** basis points from Q2 2024.
– **Other Borrowed Funds**:
– Decreased by **$710.0 million**, or **74.0%**, from Q1 2025 ($960.0 million) and by **$2,180.0 million** from Q2 2024 ($2,430.0 million).
– **Non-Performing Assets**:
– Decreased slightly by **$0.9 million**, or **0.5%**, from Q1 2025 ($198.4 million), but up **12.9%** from Q2 2024 ($174.9 million).
– **Net Charge-Offs**:
– Decreased by **$3.2 million**, or **35.6%**, to $5.8 million from Q1 2025 ($9.0 million), and down **57.0%** from Q2 2024 ($13.5 million).
– **Classified Loans**:
– Decreased by **$24.4 million** to $458.1 million from Q1 2025, but increased slightly by **$2.8 million** from Q2 2024.
– **Criticized Loans**:
– Increased by **$176.9 million**, or **17.2%**, to $1,203.0 million compared to Q1 2025 ($1,026.1 million) and up **94.7%** compared to Q2 2024 ($618.0 million).
– **Total Deposits**:
– Decreased by **$102.2 million** from Q1 2025 to $22,630.6 million, and by **$240.1 million**, or **1.0%**, from Q2 2024 ($22,870.7 million).
– **Capital Ratios**:
– Common equity tier 1 capital ratio increased by **90** basis points to **13.43%** compared to Q1 2025.
– **Dividend Declaration**:
– A quarterly dividend of **$0.47** per common share was declared on July 28, 2025, payable on August 21, 2025. This yields **7.0%** annualized based on an average closing price of **$26.95** per share during Q2 2025.
– **Net Interest Income**:
– Increased by **$2.2 million**, or **1.1%**, to **$207.2 million** from Q1 2025 ($205.0 million), and up **2.7%** from Q2 2024 ($201.7 million).
– **Non-Interest Income**:
– Totaled **$41.1 million**, a decrease of **$0.9 million**, or **2.1%**, from Q1 2025 and down **3.5%** compared to Q2 2024 ($42.6 million).
– **Total Non-Interest Expense**:
– Decreased by **$5.5 million**, or **3.4%**, from Q1 2025 to **$155.1 million** and fell **1.1%** from Q2 2024.
## Liquidity and Operational Efficiency
– **Improved Efficiency**:
– The Company emphasized prudent expense management while focusing on organic growth, resulting in a stable platform for future growth and profitability.
– **Growth Strategies**:
– The outsourcing of the consumer credit card portfolio contributed a **$4.3 million** gain during the quarter.
– **Credit Quality Metrics**:
– The allowance for credit losses as a percentage of period-end loans held for investment was **1.28%**, remaining steady compared to Q1 2025 and Q2 2024. Coverage of non-performing loans decreased to **108.0%**.
## Summary
First Interstate BancSystem, Inc. demonstrated strong financial performance in Q2 2025, with notable growth in net income and improvements in net interest margins, alongside a strategically advantageous dividend announcement. Overall, the company is well-capitalized and positioned for future growth, despite challenges in certain loan classifications.
| Quarter Ended | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | % Change | % Change |
|---|---|---|---|---|---|---|---|
| Net interest income | $207.2 | $205.0 | $214.3 | $205.5 | $201.7 | 1.1% | 2.7% |
| Net interest income on a fully-taxable equivalent (“FTE”) basis | $208.6 | $206.6 | $215.9 | $207.1 | $203.4 | 1.0% | 2.6% |
| (Reduction of) provision for credit losses | $-0.3 | $20.0 | $33.7 | $19.8 | $9.0 | -101.5% | -103.3% |
| Noninterest income: | |||||||
| Payment services revenues | $17.8 | $17.1 | $17.9 | $18.7 | $18.6 | 4.1% | -4.3% |
| Mortgage banking revenues | $1.8 | $1.4 | $1.5 | $1.7 | $1.7 | 28.6% | 5.9% |
| Wealth management revenues | $9.7 | $9.8 | $10.6 | $9.6 | $9.4 | -1.0% | 3.2% |
| Service charges on deposit accounts | $6.9 | $6.6 | $6.7 | $6.6 | $6.4 | 4.5% | 7.8% |
| Other service charges, commissions, and fees | $2.1 | $2.3 | $2.5 | $2.2 | $2.1 | -8.7% | — |
| Total fee-based revenues | $38.3 | $37.2 | $39.2 | $38.8 | $38.2 | 3.0% | — |
| Other income | $2.8 | $4.8 | $7.8 | $7.6 | $4.4 | -41.7% | -36.4% |
| Total noninterest income | $41.1 | $42.0 | $47.0 | $46.4 | $42.6 | -2.1% | -3.5% |
| Noninterest expense: | |||||||
| Salaries and wages | $65.0 | $68.6 | $68.5 | $70.9 | $66.3 | -5.2% | -2.0% |
| Employee benefits | $17.9 | $20.0 | $20.5 | $19.7 | $16.9 | -10.5% | 5.9% |
| Occupancy and equipment | $18.6 | $18.7 | $18.2 | $17.0 | $16.9 | — | 10.1% |
| Other intangible amortization | $3.4 | $3.4 | $3.6 | $3.6 | $3.7 | — | -8.1%</ |
