First Interstate BancSystem reported a strong fourth quarter with significant year-over-year earnings growth, driven by improved net interest margins and a substantial gain from branch sales. The company also continued its share repurchase program and demonstrated progress in managing credit risk.
Net income increased to $108.8 million, or $1.08 per diluted share, a significant improvement from $52.1 million, or $0.50 per diluted share, in the prior year's fourth quarter.
positiveNet interest margin improved to 3.36% for the fourth quarter of 2025, an 18-basis point increase from the fourth quarter of 2024.
positiveNon-performing assets decreased by 25.5% to $138.3 million from the prior quarter and by 5.0% from the prior year.
positiveCompleted the sale of Arizona and Kansas branches, resulting in a $62.7 million gain.
positiveOther borrowed funds were zero as of December 31, 2025, down from $1,567.5 million in the prior year.
positiveTotal deposits decreased by 4.0% ($927.3 million) from December 31, 2024, impacted by branch sales.
attentionNet charge-offs increased $19.8 million to $22.1 million (0.56% of average loans) from $2.3 million (0.06% of average loans) in the prior quarter.
attentionCriticized loans increased $278.5 million from December 31, 2024, to $1,051.8 million.
attentionTotal noninterest expense increased 3.6% year-over-year, driven by higher salaries and wages.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Continued, meaningful progress as we advance through each phase of our strategic plan.
Net interest margin continues to improve, we continued executing on our previously announced share repurchase program, and we were pleased to see reductions in non-performing and criticized assets as we continue to take a proactive approach to credit risk management.
Given our strong capital position, we further increased our share repurchase authorization.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.