**First Interstate BancSystem Reports Increased Net Income in 2025**

First Interstate BancSystem, Inc. (FIBK) has reported a net income of $302.1 million, or $2.94 per diluted share, for the year ended December 31, 2025. This represents a $76.1 million, or 33.7%, increase compared to the $226.0 million, or $2.19 per diluted share, reported for the previous fiscal year. The increase in net income was primarily driven by a $62.7 million pre-tax gain from the sale of the Arizona and Kansas branches, a decrease in the provision for credit losses, and lower FDIC insurance assessment rates, partially offset by lower payment services revenues and higher income tax expense.

The company's net interest income increased by $3.8 million compared to 2024, primarily due to lower costs of funds as a result of decreased interest expense due to lower average other borrowed funds balances and decreased interest expense as a result of lower rates on savings and time deposits, which was partially offset by lower interest and dividends on investment securities and loans as a result of a decrease in average balances during the comparable periods. The net interest margin increased to 3.30% in 2025 from 3.02% in 2024, while the net FTE interest margin, a non-GAAP financial measure, increased to 3.32% from 3.04% over the same period. The provision for credit losses decreased to $26.8 million in 2025 from $67.8 million in 2024, with net charge-offs representing 0.24% of average loans outstanding, compared to 0.57% in the prior year.

Strategic developments during the year included the completion of the sale of the company's banking operations in Arizona and Kansas in October 2025, the outsourcing of the consumer credit card portfolio in June 2025, and the redemption of the 2020 Subordinated Notes in August 2025. The company also announced the contemplated sale of 11 branches in Nebraska, which transaction is expected to close at the beginning of the second quarter of 2026. In addition, during the fourth quarter of 2025, the company initiated a transformation of its banking organization, changing from a layered, regional and market structure to a flatter model.

As of December 31, 2025, First Interstate BancSystem employed 3,376 individuals across 289 banking offices in 12 states. The company's total assets were $26.6 billion, with deposits of $22.1 billion and loans held for investment of $15.2 billion. Looking ahead, the company anticipates continued economic volatility and potential recessionary pressures, which could impact deposit levels and credit quality. The company remains focused on disciplined organic growth, relationship banking, and optimizing its branch network to enhance long-term performance.

About FIRST INTERSTATE BANCSYSTEM INC

First Interstate BancSystem, Inc. is a community-focused bank holding company operating 300 branches across 14 states. It offers retail and commercial banking, mortgage, wealth management, and trust services. The company emphasizes personalized local service, community involvement, and strategic growth through organic expansion and acquisitions. Its core value proposition centers on customer loyalty, employee development, and community support within a regulated banking environment.

This description was generated via AI from an annual report. Updated 9 months ago.

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