First Interstate BancSystem, Inc. reported a net income of $83.9 million, or $0.87 per diluted share, for the second quarter of 2026, marking an increase from $71.7 million, or $0.69 per diluted share, in the same period of 2025. This growth is primarily attributed to a $19.5 million gain from the sale of eleven Nebraska branches, although it was partially offset by a decline in net interest income. For the first half of 2026, net income rose to $144.1 million from $121.9 million year-over-year, again largely due to the branch sale.

The company's total assets decreased by $755.6 million, or 2.8%, to $25.9 billion as of June 30, 2026, compared to $26.6 billion at the end of 2025. This decline was driven by reductions in loans and cash equivalents, despite an increase in investment securities, which rose to $8 billion from $7.6 billion. Loans held for investment also saw a significant decrease of $920.2 million, falling to $14.3 billion, largely due to the aforementioned branch sale and a strategic decision to discontinue indirect loans.

In terms of operational metrics, First Interstate BancSystem's total deposits decreased by $647 million, or 2.9%, to $21.4 billion, with declines across all interest-bearing deposit categories. The bank's non-performing loans increased to $159.7 million, up from $134.9 million at the end of 2025, while the allowance for credit losses decreased to $182.2 million, representing 1.28% of loans held for investment. The company recorded a reversal of provision for credit losses of $3.2 million during the quarter, reflecting improved credit quality.

Strategically, the company has been focusing on optimizing its branch network and enhancing operational efficiency. In addition to the sale of branches, First Interstate closed four additional branches in Nebraska and exited North Dakota and Minnesota. The bank has also redesigned its organizational structure to facilitate quicker decision-making and better align with its relationship-driven growth strategy. Looking ahead, the company anticipates continued economic volatility, which may impact its financial performance, particularly in terms of credit quality and deposit levels.

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 about 1 year ago.

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