First Interstate BancSystem Reports First Quarter Earnings

First Interstate Bancsystem ( (FIBK) ) has released its Q1 earnings. Here is a breakdown of the information First Interstate Bancsystem presented to its investors.

First Interstate BancSystem, Inc. is a financial and bank holding company headquartered in Billings, Montana, specializing in community banking services across several U.S. states, offering a comprehensive range of banking products to individuals, businesses, and municipalities.

In the first quarter of 2025, First Interstate BancSystem reported a net income of $50.2 million, or $0.49 per diluted share, marking a slight decrease from the previous quarter and the same period last year. The company highlighted an increase in net interest margin and a reduction in outstanding borrowings, despite facing challenges with increased non-performing assets and criticized loans.

Key financial metrics revealed a net interest margin increase to 3.19%, alongside a significant decrease in net charge-offs by 83.7% to $9.0 million. However, non-performing assets rose by 36.3% to $198.4 million, and criticized loans surged by 32.7% to $1,026.1 million, primarily due to downgrades in the commercial real estate loan portfolio. The company also reported a decrease in total deposits by $282.8 million and a reduction in other borrowed funds by 38.8%.

Despite these challenges, First Interstate BancSystem maintained a strong capital position, with an improved common equity tier 1 capital ratio of 12.53%. The company declared a dividend of $0.47 per common share, reflecting a 6.1% annualized yield.

Looking ahead, First Interstate BancSystem remains focused on prudent expense management and credit risk strategies, aiming to sustain its growth trajectory while navigating the complexities of the current economic environment.