FIBK

Regional banking company First Interstate BancSystem (NASDAQ:FIBK) reported Q2 CY2026 results exceeding the market’s revenue expectations , with sales up 5% year on year to $265.3 million. Its non-GAAP profit of $0.87 per share was 35.6% above analysts’ consensus estimates. Is now the time to buy FIBK? Find out in our full research report (it’s free). Revenue: $265.3 million vs analyst estimates of $247.3 million (5% year-on-year growth, 7.3% beat) Adjusted EPS: $0.87 vs analyst estimates of $0.64 (35.6% beat) Market Capitalization: $3.70 billion First Interstate BancSystem’s second quarter performance reflected the company’s ongoing focus on balance sheet optimization and relationship-driven growth. Management attributed the quarter’s results to net interest margin expansion, disciplined expense management, and targeted reductions in criticized and non-core loans. CEO Jim Reuter described the franchise as more efficient, highlighting progress in digital engagement, operating model updates, and the successful execution of a share repurchase program. The company’s proactive approach to managing loan payoffs and deposit mix helped offset pressures from declining overall loan balances, particularly through efforts in the Rocky Mountain region and enhanced core deposit growth. Looking ahead, management expects continued variability in reported loan balances, driven by accelerated payoffs in non-relationship and out-of-market credits, as well as ongoing efforts to strengthen the deposit base. CFO David Della Camera emphasized that the recent organizational changes and addition of relationship managers are supporting increased loan production pipelines, though near-term growth will be tempered by further portfolio clean-up. The company anticipates that fixed asset repricing and a favorable shift in deposit costs will provide incremental benefits to net interest margin, with Reuter underscoring the intent to maintain a disciplined focus on capital allocation, stating, "Our focus remains on the long-term drivers of franchise value, which are deepening customer relationships, growing numbers of clients and core deposits, improving credit quality, optimizing our operating model and deploying capital in a disciplined manner." Management pointed to a combination of net interest margin improvement, disciplined portfolio management, and ongoing investments in technology and personnel as the primary drivers of the latest quarter’s performance. Net interest margin expansion: The company achieved its ninth consecutive quarter of net interest margin growth, driven by fixed asset repricing and lower funding costs, despite a reduction in interest-earning assets due to branch sales and loan payoffs. Loan portfolio repositioning: Elevated loan payoffs, especially in non-relationship and criticized credits, led to a decline in total loan balances. Management characterized these payoffs as largely non-core, helping to de-risk the balance sheet and improve overall credit quality. Deposit mix improvement: While total deposits declined, the mix shifted toward more stable, noninterest-bearing balances. Management allowed higher-cost deposits to exit, focusing on core relationship growth and a more favorable funding profile. Operational efficiency gains: The company continued realigning staffing levels, prioritizing revenue-generating positions and leveraging technology to improve efficiency. This included a completed organizational redesign and the addition of 14 new relationship managers to support production in key markets. Capital deployment and shareholder returns: Share repurchases remained a core capital strategy, with the authorization increased by $150 million. The dividend was maintained, and management highlighted a strong capital position, with a common equity Tier 1 ratio of 14.54%, supporting both growth initiatives and ongoing shareholder returns. Management expects future performance to be shaped by ongoing loan portfolio clean-up, efforts to deepen core customer relationships, and benefits from fixed asset repricing. Continued loan payoff activity: Management anticipates further accelerated payoffs of non-relationship and out-of-market loans, which will suppress near-term reported loan growth but are expected to strengthen the long-term quality of the loan book. Deposit growth and mix shift: Focus remains on growing core, low-cost deposits, with management citing improvements in noninterest-bearing balances and ongoing customer acquisition as key to maintaining a stable funding base and supporting future lending. Margin and earnings profile improvement: The company expects sequential improvement in net interest margin and profitability through fixed asset repricing and lower deposit costs, with the potential for additional upside as new relationship managers contribute to loan production and as asset mix stabilizes. In the coming quarters, the StockStory team will be monitoring (1) the pace and composition of loan payoffs and whether relationship-driven loan production can offset runoff; (2) sustained improvement in core, low-cost deposit growth as higher-cost funding exits the balance sheet; and (3) progress from recent investments in technology, branding, and new relationship managers. Additionally, we will watch for signs that margin expansion and operational efficiencies translate into higher returns and improved profitability. First Interstate BancSystem currently trades at $38.18, in line with $38.10 just before the earnings. Is there an opportunity in the stock? 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First Interstate BancSystem’s second quarter performance reflected the company’s ongoing focus on balance sheet optimization and relationship-driven growth. Management attributed the quarter’s results to net interest margin expansion, disciplined expense management, and targeted reductions in criticized and non-core loans. CEO Jim Reuter described the franchise as more efficient, highlighting progress in digital engagement, operating model updates, and the successful execution of a share repurchase program. The company’s proactive approach to managing loan payoffs and deposit mix helped offset pressures from declining overall loan balances, particularly through efforts in the Rocky Mountain region and enhanced core deposit growth. Is now the time to buy FIBK? Find out in our full research report (it’s free). Revenue: $245.8 million vs analyst estimates of $247.3 million (2.7% year-on-year decline, 0.6% miss) Adjusted EPS: $0.87 vs analyst estimates of $0.64 (35.6% beat) Market Capitalization: $3.61 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Matthew Clark (Piper Sandler) asked how much of the loan book has no deposit relationship slated for runoff and when earning assets might stabilize. CFO David Della Camera explained that about $600 million is considered out-of-market, with recent payoffs largely non-core, and expects asset balances to bottom in Q3 before improving. Matthew Clark (Piper Sandler) inquired about potential return on assets improvement next year. Della Camera declined to provide specific 2027 guidance but stated underlying profitability should continue to improve as deposit mix and earning asset quality strengthen. Kelly Motta (KBW) requested more detail on loan production versus payoffs and the impact of organizational changes. CEO Jim Reuter noted significant progress in production pipelines, especially in the Rocky Mountain region, attributing gains to the recent reorganization and addition of relationship managers. Kelly Motta (KBW) asked how much criticized loan improvement was due to proactive management versus normal trends. Della Camera indicated that the majority of improvement was tied to proactive portfolio actions and secondary market activity, with further payoff activity expected. Timur Braziler (UBS) questioned the outlook for net interest income (NII) growth through fixed asset repricing despite balance sheet variability. Della Camera acknowledged past NII stagnation but expressed optimism that a combination of repricing, optionality on new production, and downside protection should drive improvement. In the coming quarters, the StockStory team will be monitoring (1) the pace and composition of loan payoffs and whether relationship-driven loan production can offset runoff; (2) sustained improvement in core, low-cost deposit growth as higher-cost funding exits the balance sheet; and (3) progress from recent investments in technology, branding, and new relationship managers. Additionally, we will watch for signs that margin expansion and operational efficiencies translate into higher returns and improved profitability. First Interstate BancSystem currently trades at $37.75, in line with $38.10 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. First Interstate BancSystem (FIBK) has moved into focus after reporting second quarter 2026 earnings. The company reported net income of US$83.9 million and earnings per share of US$0.87 from continuing operations. See our latest analysis for First Interstate BancSystem. At a share price of US$38.12, First Interstate BancSystem has a 90 day share price return of 9.38% and a 1 year total shareholder return of 35.59%. This suggests recent momentum alongside dividend and buyback activity, even as higher loan charge offs add a layer of risk to the story. If earnings, dividends and buybacks have your attention, this can be a good moment to broaden your watchlist with a focused stock screener such as 18 top founder-led companies After a 1 year total return of 35.59% and fresh support from dividends and buybacks, the key issue for First Interstate BancSystem is whether most of the easy gains are already in the rear view mirror or not, and current valuation metrics offer a useful guide. Compared with the last close at $38.12, the most followed narrative for First Interstate BancSystem points to a fair value of $40.00, which implies a modest gap that hinges on how investors weigh capital strength against slower growth. Read the complete narrative. The core of this narrative is straightforward. A stronger capital base, steadier margins, and measured growth expectations form the basis for the $40.00 fair value. The narrative explores which earnings profile and return assumptions support the view that this regional bank is “undervalued but not by much.” According to nitram, the narrative emphasizes First Interstate BancSystem focusing on a leaner footprint, a deposit-heavy funding mix, and a balance sheet that keeps capital ratios high, while accepting slower top-line expansion than the broader US market. Result: Fair Value of $40.00 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this depends on First Interstate BancSystem managing interest rate pressure on its securities portfolio and maintaining credit quality across its commercial real estate exposure. Find out about the key risks to this First Interstate BancSystem narrative. If this mix of risks and rewards around First Interstate BancSystem feels finely balanced, take the opportunity now, while the details are fresh, to weigh the evidence for yourself with the 3 key rewards and 1 important warning sign. If First Interstate BancSystem has sharpened your focus, do not stop here. Use the Simply Wall Street Screener to surface more focused stock ideas that fit your goals. Spot potential underpriced opportunities early by scanning a curated set of screener containing 20 high quality undiscovered gems before they appear on most investors' radars. Strengthen the defensive side of your portfolio by zeroing in on companies from the 81 resilient stocks with low risk scores that score well on stability and resilience. Target robust balance sheets and fundamentals by filtering through the solid balance sheet and fundamentals stocks screener (49 results) to find stocks that can better handle tough conditions. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FIBK. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in First Interstate BancSystem, Inc.? Here are five stocks we like better. First Interstate BancSystem posted second-quarter net income of $83.9 million, or $0.87 per share, up from $60.2 million in Q1, helped by a $19.5 million gain from a branch transaction. Profitability continued to improve as net interest margin expanded for the ninth straight quarter to 3.48%, with lower deposit and funding costs offsetting some pressure from reduced earning assets. Loan balances fell $447 million on accelerated payoffs, while deposits declined after the Nebraska branch sale; even so, the bank said credit quality improved, capital remained strong, and it continued repurchases and dividend payments. 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. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? 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. → GE Vernova Just Sent a Mixed AI Signal to Investors 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. → D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? 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. 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. 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. 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]. The article "First Interstate BancSystem Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net interest margin expanded for the ninth consecutive quarter, driven by disciplined fixed asset repricing and a 3 basis point reduction in total deposit costs. Loan balances declined more than anticipated due to elevated payoffs concentrated in non-relationship credits, criticized loans, and divested markets. Management is intentionally pulling forward future payoff expectations to accelerate the transition toward a core relationship-based portfolio. The post-reorganization operating model is yielding efficiencies, allowing for the addition of 14 revenue-generating relationship managers while maintaining lower overall staffing levels. Credit quality improved significantly with a 9.3% sequential decline in criticized loans, reflecting proactive resolution of previously reserved credits. Non-interest-bearing deposit balances returned to year-over-year growth on an adjusted basis, signaling a stabilization of the core funding mix. Guidance assumes continued payoff pressure through the remainder of 2026 as the bank exits approximately $600 million in out-of-market and non-core credits. Average earning assets are expected to bottom in Q3 2026 before beginning a recovery in Q4 driven by improved commercial production pipelines. Management anticipates that the current period of balance sheet contraction will provide greater visibility and a cleaner growth trajectory entering 2027. Fixed asset repricing tailwinds are expected to accelerate into 2027 as approximately $2.2 billion in loans mature at yields significantly below current market rates. Capital deployment will remain active, with an additional $150 million share repurchase authorization intended to enhance per-share metrics during the balance sheet transition. A $19.5 million gain was realized in the second quarter from the completion of a Nebraska branch transaction and associated deposit sale. Non-interest expenses were impacted by one-time costs related to a brand refresh, updated advertising campaigns, and branch closure expenses. The provision for credit losses saw a $3.2 million reduction, primarily as a mechanical result of the declining total loan balance. Mortgage production has trailed internal expectations, leading to a forecast for a more meaningful near-term decline in the residential portfolio. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified approximately $600 million in out-of-market loans, with $100 million already paid off in Q2. The bank expects average earning assets to bottom in Q3, with ending balances stabilizing as core relationship growth begins to offset deliberate exits. Production has seen a 'step-up function' post-reorg, particularly in the Rocky Mountain region, supported by 14 new relationship manager hires. While payoffs currently mask growth, management noted that July production is off to a strong start and pipelines are building across the footprint. Management expressed confidence in NII growth despite a smaller balance sheet, citing the 'optionality' of repricing $2.2 billion in low-coupon loans into higher-yielding assets. The strategy focuses on a mix shift toward higher-yielding relationship loans and lower-cost deposits to drive per-share earnings efficiency.

This article first appeared on GuruFocus. Net Income: $83.9 million or $0.87 per diluted share in Q2 2026. Net Interest Income: Increased by $1.5 million to $202.2 million. Net Interest Margin: 3.48% in Q2 2026, up from 3.43% in Q1 2026. Noninterest Income: $61.7 million, including a $19.5 million gain from a branch transaction. Noninterest Expense: $158.9 million, an increase of $1.3 million from the prior quarter. Loans: Decreased by $447 million in Q2 2026. Total Deposits: Decreased by $441.7 million to $21.4 billion as of June 30, 2026. Net Charge-Offs: Increased by $7.3 million to $9.7 million. Provision for Credit Losses: Reduction of $3.2 million. Share Repurchases: Approximately 1.9 million shares repurchased, totaling $69 million in Q2 2026. Dividend: $0.47 per common share. Common Equity Tier 1 Capital Ratio: 14.54% at the end of Q2 2026. Warning! GuruFocus has detected 6 Warning Sign with FIBK. Is FIBK fairly valued? Test your thesis with our free DCF calculator. Release Date: July 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net interest margin expanded for the ninth consecutive quarter, indicating improved profitability. Deposit costs continued to decline, enhancing the bank's cost efficiency. Criticized loans decreased by 9.3% from the prior quarter, reflecting improved credit quality. The company repurchased approximately 1.9 million shares, returning $69 million to shareholders, and increased the repurchase authorization by $150 million. Noninterest income increased significantly by $20.6 million from the prior quarter, driven by a gain from a branch transaction. Loan balances declined more than expected due to elevated payoffs, impacting growth. Total deposits decreased by $441.7 million, partly due to the sale of deposits in a branch transaction. Net charge-offs increased by $7.3 million in the second quarter, indicating higher credit losses. The company anticipates continued payoff pressure in the near term, which may affect loan growth. Mortgage production trailed expectations, leading to a forecasted decline in that portfolio. Q: How much of the loan book has no deposit relationship that you'd like to exit, and when do you see earning assets stabilizing and starting to grow again? A: David Camera, CFO: We expect the third quarter to be the bottom for average earning assets, with ending earning assets flat to improving from here. The out-of-market portfolio is about mid-$600 million, with $100 million in payoffs this quarter. Most payoffs were non-relationship in nature, and we expect continued payoffs in the near term. Q: What kind of ROA improvement do you think you can generate next year? A: David Camera, CFO: It's too early to provide 2027 guidance, but we expect continued improvement in noninterest-bearing levels and asset mix, which should enhance the earnings profile over time. Q: Can you provide details on loan production and outlook, given the increased payoffs and proactive portfolio management? A: James Reuter, CEO: We've seen a significant step-up in production, especially in the Rocky Mountain region. The reorganization completed at the end of the first quarter and the addition of 14 RMs have contributed to growing pipelines and improved results. Q: How much of the improvement in criticized loans is due to proactive portfolio management versus normal credit workout? A: David Camera, CFO: The revised guidance implies a $600 million decline in loans, with a significant portion from out-of-market portfolios. We expect continued payoffs and secondary market activity, pulling forward some future maturities. Q: What gives you confidence in greater NII growth next year through fixed asset repricing, given the balance sheet flux? A: David Camera, CFO: Despite a smaller balance sheet due to branch sales, we see strong downside protection and upside optionality in NII. The production focus and RM additions support our optimism for improved NII growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

First Interstate BancSystem (FIBK) 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%. 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), 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Interstate BancSystem, Inc. (FIBK) : Free Stock Analysis Report German American Bancorp, Inc. (GABC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BILLINGS, Mont., July 23, 2026--(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 Nebraska branches on April 10, 2026 resulting in a gain of $19.5 million for the second quarter of 2026. Net interest margin increased to 3.45% for the second quarter of 2026, a 4-basis point increase from the first quarter of 2026 and a 15-basis point increase from the second quarter of 2025. Criticized loans decreased $95.8 million to $937.4 million as of June 30, 2026, compared to $1,033.2 million as of March 31, 2026, and decreased $265.6 million, compared to $1,203.0 million as of June 30, 2025. Net charge-offs increased $7.3 million to $9.7 million, or an annualized 0.27% of average loans outstanding, as of June 30, 2026, from $2.4 million, or an annualized 0.06% of average loans outstanding, as of March 31, 2026, and increased $3.9 million from $5.8 million, or an annualized 0.14% of average loans outstanding, as of June 30, 2025. Non-performing assets increased $2.5 million, or 1.5%, to $165.0 million as of June 30, 2026, from $162.5 million as of March 31, 2026 and decreased $32.5 million, or 16.5%, from $197.5 million as of June 30, 2025. Total deposits decreased $441.7 million, or 2.0%, to $21,441.3 million as of June 30, 2026, compared to $21,883.0 million as of March 31, 2026, across all interest bearing deposit categories during the second quarter of 2026, primarily driven by the sale of eleven Nebraska branches that included $244.2 million of deposits. Total deposits decreased $1,189.3 million, or 5.3%, compared to $22,630.6 million as of June 30, 2025, across all deposit categories, primarily driven by the Arizona and Kansas sold branches during the fourth quarter of 2025 that included $641.6 million of deposits in addition to the deposits sold with the eleven Nebraska sold branches. Other borrowed funds were zero as of June 30, 2026 and March 31, 2026 as compared to $250.0 million as of June 30, 2025. During the second quarter of 2026, the Company repurchased approximately 1.93 million shares of common stock for a total repurchase of $68.7 million. The Company has repurchased approximately 7.98 million shares of its common stock through June 30, 2026 for a total repurchase of $270.3 million since the board of directors authorized the repurchase program in August of 2025. As of June 30, 2026, approximately $29.7 million remained available for future purchases under the $300.0 million authorized. On July 22, 2026, the board of directors authorized a further increase to the repurchase program of an additional $150.0 million, or a total of $450.0 million authorized since its adoption in August of 2025. Common equity tier 1 capital ratio increased 24 basis points during the second quarter of 2026 to 14.54%, compared to the first quarter of 2026, primarily due to lower risk-weighted assets driven by lower loan balances, partially offset by shares repurchased during the second quarter of 2026. "We are pleased to see continued improvement in our net interest margin and meaningful progress reducing criticized loans, as we remain focused on strengthening the quality and earnings power of the franchise," said James A. Reuter, President and Chief Executive Officer of the Company. "We also continued to execute on our previously announced share repurchase authorization and are expanding that authorization, underscoring our commitment to shareholder returns. Production and underlying account growth improved during the quarter, although elevated prepayment activity offset this momentum in reported balances. Many of the outcomes reflect deliberate actions that improve the long-term value of the franchise. Through ongoing fixed asset repricing, disciplined capital deployment, operating model optimization, and continued investment in relationship growth, we are building a more efficient organization and remain confident in our ability to deliver improving returns over time." DIVIDEND DECLARATION On July 22, 2026, the Company’s board of directors declared a dividend of $0.47 per common share, payable on August 14, 2026, to common stockholders of record as of August 4, 2026. The dividend equates to a 5.3% annualized yield based on the $35.40 per share average closing price of the Company’s common stock as reported on NASDAQ during the second quarter of 2026. NET INTEREST INCOME Net interest income increased $1.5 million to $202.2 million during the second quarter of 2026, compared to net interest income of $200.7 million during the first quarter of 2026. Net interest income decreased $5.0 million, or 2.4%, during the second quarter of 2026 compared to the second quarter of 2025. The quarterly increase from the first quarter of 2026 was primarily driven by lower interest expense on time deposits and higher investment balances and yields, partially offset by lower interest income due to reduced loan balances and interest earning assets as a result of the sale of eleven Nebraska branches. 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 and the sale of eleven Nebraska branches during the second quarter of 2026, which resulted in a reduction of net interest income in the second quarter of 2026. Interest accretion attributable to the fair value of acquired loans, related to prior acquisitions, contributed to net interest income during the second quarter of 2026, the first quarter of 2026, and the second quarter of 2025, in the amounts of $3.5 million, $3.1 million, and $4.2 million, respectively. Net interest margin ratio was 3.45% for the second quarter of 2026, compared to 3.41% during the first quarter of 2026, and 3.30% during the second quarter of 2025. Net FTE (fully-taxable equivalent) interest margin ratio1 was 3.48% for the second quarter of 2026, compared to 3.43% during the first quarter of 2026, and 3.32% during the second quarter of 2025. Excluding interest accretion from the fair value of acquired loans, the adjusted net FTE interest margin ratio1 was 3.42%, an increase of 4 basis points from the prior quarter, primarily driven by higher investment yields and lower rates on interest bearing time deposits, partially offset by lower average loan balances and higher security 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 16 basis points, primarily as a result of lower interest expense resulting from decreased deposit and other borrowed funds balances. PROVISION FOR CREDIT LOSSES During the second quarter of 2026, the Company recorded a reduction of provision for credit losses of $3.2 million. This compares to a provision for credit losses of $6.7 million and a reduction of provision for credit losses of $0.3 million during the first quarter of 2026 and the second quarter of 2025, respectively. For the second quarter of 2026, net loan charge-offs were $9.7 million, or an annualized 0.27% of average loans outstanding, compared to net loan charge-offs of $2.4 million, or an annualized 0.06% of average loans outstanding, for the first quarter of 2026 and net loan charge-offs of $5.8 million, or an annualized 0.14% of average loans outstanding, for the second quarter of 2025. Net loan charge-offs in the second quarter of 2026 were composed of charge-offs of $14.0 million offset by recoveries of $4.3 million. Net loan charge-offs in the first quarter of 2026 were composed of charge-offs of $6.5 million, which were offset by recoveries of $4.1 million. Net loan charge-offs in the second quarter of 2025 were composed of charge-offs of $13.0 million, which were offset by recoveries of $7.2 million. The Company’s allowance for credit losses as a percentage of period-end loans held for investment was 1.28% at June 30, 2026, compared to 1.33% at March 31, 2026 and 1.28% at June 30, 2025. Coverage of non-performing loans decreased to 114.1% at June 30, 2026, compared to 125.6% at March 31, 2026 and increased from 108.0% at June 30, 2025. NONINTEREST INCOME Noninterest income was $61.7 million for the second quarter of 2026, increasing $20.6 million compared to the first quarter of 2026 and increasing $20.6 million compared to the second quarter of 2025. The increases from the first quarter of 2026 and the second quarter of 2025 were primarily due to the $19.5 million gain recorded in other income from the previously announced sale of the eleven Nebraska branches during the second quarter of 2026. Payment services revenues increased $1.2 million and decreased $1.0 million during the second quarter of 2026 compared to the first quarter of 2026 and the second quarter of 2025, respectively. The linked quarter increase was primarily due to an increase in business credit card and debit card interchange revenues during the second quarter of 2026. The year-over-year decrease was mainly the result of lower consumer credit card interchange during the second quarter of 2026 as compared to the second quarter of 2025, related to the outsourcing of consumer credit cards in the second quarter of 2025. NONINTEREST EXPENSE The Company’s noninterest expense was $158.9 million for the second quarter of 2026, an increase of $1.3 million from the first quarter of 2026 and an increase of $3.8 million from the second quarter of 2025. Salaries and wages expense decreased $3.6 million to $64.9 million during the second quarter of 2026 compared to the first quarter of 2026, primarily due to lower short-term incentive accruals of $1.6 million, lower salary and wages, and lower severance accruals during the second quarter of 2026. Salaries and wages expense decreased $0.1 million to $64.9 million during the second quarter of 2026 compared to $65.0 million during the second quarter of 2025. Employee benefit expenses decreased $2.2 million to $19.0 million during the second quarter of 2026, compared to $21.2 million during the first quarter of 2026, primarily due to lower payroll taxes, partially offset by higher long-term incentives. Employee benefit expenses increased $1.1 million from $17.9 million during the second quarter of 2025, primarily due to higher health insurance costs during the second quarter of 2026. Other expenses increased $6.0 million during the second quarter of 2026 compared to the first quarter of 2026, primarily due to an increase of $1.2 million in professional fees, $0.8 million in donations, $0.6 million in FDIC insurance premiums, and various other expense categories. Other expenses increased $2.9 million during the second quarter of 2026 compared to the second quarter of 2025, primarily due to an increase of $1.0 million in advertising expense. Other real estate owned expense, net increased $1.7 million during the second quarter of 2026 compared to the first quarter of 2026, primarily due to a positive fair value adjustment to a commercial property during the first quarter of 2026. Other real estate owned expense, net increased $0.6 million during the second quarter of 2026 compared to the second quarter of 2025. BALANCE SHEET Total assets decreased $541.8 million, or 2.1%, to $25,885.0 million as of June 30, 2026, from $26,426.8 million as of March 31, 2026, primarily due to a decrease of $515.7 million in loans as a result of payoffs and paydowns, including $64.1 million of loans related to the sale of the eleven Nebraska branches during the second quarter of 2026. Total assets decreased $1,681.4 million from $27,566.4 million as of June 30, 2025, primarily due to a decrease of $2,405.1 million in loans which were partially driven by the sale of the branches in Arizona and Kansas during the fourth quarter of 2025 and the sale of eleven branches in Nebraska during the second quarter of 2026. The loan declines were partially offset by an increase in investment securities of $673.4 million. Investment securities decreased $24.4 million to $7,985.6 million as of June 30, 2026, from $8,010.0 million as of March 31, 2026, primarily resulting from pay-downs, maturities, called securities, and a $10.4 million decrease in fair market values, partially offset by purchases of investment securities during the second quarter of 2026. Investment securities increased $673.4 million from $7,312.2 million as of June 30, 2025, primarily resulting from purchases of investment securities and a $38.5 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: The decline in loans was impacted by $50.4 million of continued amortization of the indirect portfolio for which the Company stopped originating loans during the first quarter of 2025, and loan payoffs and paydowns. The ratio of loans held for investment to deposits was 66.6%, as of June 30, 2026, compared to 67.3% as of March 31, 2026 and 72.3% as of June 30, 2025. Total deposits decreased $441.7 million, or 2.0%, to $21,441.3 million as of June 30, 2026, from $21,883.0 million as of March 31, 2026, across all interest bearing deposit categories during the second quarter, primarily driven by the sale of eleven Nebraska branches that included $244.2 million of deposits. Total deposits decreased $1,189.3 million, or 5.3%, compared to $22,630.6 million as of June 30, 2025, across all deposit categories, primarily driven by the Arizona and Kansas sold branches that included $641.6 million of deposits in addition to the deposits sold with the eleven Nebraska sold branches. Other borrowed funds is comprised 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 June 30, 2026 and March 31, 2026. Other borrowed funds decreased $250.0 million from June 30, 2025. The decrease was funded by cash flows from paydowns and maturities of loans. The Company is considered to be "well-capitalized" as of June 30, 2026, having exceeded all regulatory capital adequacy requirements. During the second quarter of 2026, the Company paid regular common stock dividends of approximately $46.0 million, or $0.47 per share, and repurchased approximately 1.9 million shares of common stock at a weighted-average price of $35.61 per share pursuant to its stock repurchase program. CREDIT QUALITY As of June 30, 2026, non-performing assets increased $2.5 million, or 1.5%, to $165.0 million, compared to $162.5 million as of March 31, 2026, primarily as a result of an increase in non-accrual loans, partially offset by a decrease of $1.3 million in OREO. Criticized loans decreased $95.8 million, or 9.3%, to $937.4 million as of June 30, 2026, from $1,033.2 million as of March 31, 2026, primarily as a result of payoffs and paydowns, as well as upgrades 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 generally 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," as well as the negative forms of those words 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 Assets 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. Second Quarter 2026 Conference Call for Investors First Interstate BancSystem, Inc. will host a conference call to discuss the results for the second quarter of 2026 at 9:30 a.m. Eastern Time (7:30 a.m. Mountain Time) on Friday, July 24, 2026. The conference call will be accessible by telephone and through the Internet. Participants may join the call by dialing 1-833-461-5787; the access code is 544064138. To participate via the Internet, visit www.FIBK.com. The webcast call will be recorded and made available for replay on July 24, 2026, after 1:30 p.m. Eastern Time (11:30 a.m. Mountain Time), through July 23, 2027, prior to 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time), by visiting http://events.q4inc.com/attendee/544064138. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260723051059/en/ Contacts David P. Della Camera, CFA Chief Financial Officer First Interstate BancSystem, Inc. (406) 255-5363 [email protected] NASDAQ: FIBK www.FIBK.com (FIBK-ER)