Core Insights - First Interstate BancSystem reported notable insider selling by John M. Heyneman Jr., a Board member, who sold 30,432 shares on November 21, 2025, amid a year of modest stock declines [1][2][9] Transaction Summary - The shares sold amounted to 30,432, with a transaction value of $944,300 based on a sale price of $31.03 per share [2] - Post-transaction, Heyneman's direct ownership decreased to 5,224 shares, valued at $164,100 based on a closing price of $31.42 on the same day [2] - This sale represented 85.35% of Heyneman's direct holdings prior to the transaction, significantly larger than his median sell trade of 21,125 shares [6] Company Overview - First Interstate BancSystem reported a total revenue of $1.01 billion and a net income of $245.40 million for the trailing twelve months [4] - The company has a dividend yield of 5.86% and a 1-year price change of -1.10% as of November 21, 2025 [4] Financial Performance - In Q3, First Interstate achieved a net income of $71.4 million, an increase from $55.5 million in the same quarter of 2024, resulting in earnings of $0.69 per diluted share compared to $0.54 the previous year [10] - However, net loans held for investment fell to $15.8 billion, reflecting a 12% year-over-year decline [10] Ownership Context - Despite the reduction in direct holdings, Heyneman retains significant indirect interests through various entities, totaling over 1.4 million shares [6][9] - The sale price of $31.03 was approximately 5.4% below the latest available market price of $32.80 as of November 27, 2025 [6]

Group 1 - SanDisk (SNDK.US) will join the S&P 500 index on November 28, 2025, replacing IPG Photonics (IPG.US) [1] - PTC Therapeutics (PTCT.US) will replace SanDisk in the S&P SmallCap 600 index on the same date [1] - Upwork (UPWK.US) will take the place of Premier (PINC.US) in the S&P SmallCap 600 index on November 28 [1] Group 2 - Patient Square Capital's acquisition of Premier is expected to be completed by November 25 [1] - First Interstate BancSystem (FIBK.US) will replace Hanesbrands (HBI.US) in the S&P SmallCap 600 index on December 2 [1] - Gildan Activewear (GIL.US) is expected to complete its acquisition of Hanesbrands by December 1 [1]

Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [2]

Core Points - S&P Dow Jones Indices announced changes to the S&P 500 and S&P SmallCap 600 indices, effective November 28, 2025 [1][4] - The changes include the addition and deletion of several companies, reflecting ongoing market dynamics and corporate acquisitions [1][4] Group 1: S&P 500 Changes - Sandisk (SNDK) will be added to the S&P 500, replacing Interpublic Group (IPG), which is being acquired by Omnicom Group (OMC) [1][4] - The acquisition of Interpublic Group is expected to close soon, pending final conditions [4] Group 2: S&P SmallCap 600 Changes - Upwork (UPWK) will replace Premier Inc. (PINC) in the S&P SmallCap 600, with Premier being acquired by Patient Square Capital [1][4] - PTC Therapeutics (PTCT) will replace Sandisk in the S&P SmallCap 600, following Sandisk's addition to the S&P 500 [1][4] - First Interstate BancSystem (FIBK) will replace Hanesbrands (HBI) in the S&P SmallCap 600, with Gildan Activewear acquiring Hanesbrands [1][4]

Financial Position - As of September 30, 2025, the company had consolidated assets of $27.3 billion, deposits of $22.6 billion, net loans held for investment of $15.6 billion, and total stockholders' equity of $3.4 billion[137]. - Total assets decreased to $27,292.4 million as of September 30, 2025, compared to $29,946.9 million as of September 30, 2024[166]. - Total liabilities decreased by $1,949.2 million, or 7.5%, to $23,884.2 million as of September 30, 2025, from $25,833.4 million as of December 31, 2024[221]. - Stockholders' equity increased by $144.7 million, or 4.4%, to $3,448.7 million as of September 30, 2025, from $3,304.0 million as of December 31, 2024[227]. - Total cash and cash equivalents increased to $1,449.2 million as of September 30, 2025, compared to $896.6 million as of December 31, 2024[233]. Interest Income and Margin - The company's quarterly yield on interest-earning assets decreased to 4.73% as of September 30, 2025, down from 4.76% as of June 30, 2025, and from 4.83% as of September 30, 2024[153]. - The net interest margin increased to 3.34% during the three months ended September 30, 2025, from 3.30% during the three months ended June 30, 2025, and from 3.01% for the three months ended September 30, 2024[154]. - Net interest income, the largest source of operating income, was $206.8 million for the three months ended September 30, 2025, compared to $205.5 million for the same period in 2024, reflecting a $1.3 million increase[166]. - The net interest margin ratio increased by 33 basis points to 3.34% for the three months ended September 30, 2025, compared to 3.01% for the same period in 2024[168]. - The cost of funds decreased to 1.45% during the three months ended September 30, 2025, from 1.50% during the three months ended June 30, 2025, and from 1.86% during the three months ended September 30, 2024[154]. Credit Quality - Criticized assets improved in the third quarter of 2025 compared to the second quarter, indicating a positive trend in credit quality[156]. - The provision for credit losses decreased by $19.8 million during the three months ended September 30, 2025, contributing to the increase in net income[162]. - Non-performing loans as a percentage of loans held for investment increased to 1.15% as of September 30, 2025, from 0.78% as of December 31, 2024[208]. - The allowance for credit losses was $205.8 million, or 1.30% of loans held for investment, as of September 30, 2025, up from $204.1 million, or 1.14%, as of December 31, 2024[217]. - The company expects future provisions for credit losses to be subject to ongoing evaluations of risks in the loan portfolio, particularly if economic conditions decline[219]. Operational Efficiency - On October 10, 2025, the company completed the sale of twelve branches, including approximately $645 million in deposits and loans with outstanding balances of $305 million[143]. - The company plans to close four additional branches in Nebraska in the first quarter of 2026 to enhance operational efficiency[149]. - The company discontinued accepting applications for indirect loans in Q1 2025, leading to a continued amortization of $66.8 million in the indirect portfolio during Q3 2025[203]. Income and Expenses - Net income increased by $15.9 million to $71.4 million, or $0.69 per diluted share, for the three months ended September 30, 2025, compared to $55.5 million, or $0.54 per diluted share, for the same period in 2024[162]. - Total noninterest income decreased by $2.7 million, or 5.8%, to $43.7 million for the three months ended September 30, 2025, compared to $46.4 million for the same period in 2024[182]. - Total noninterest expense decreased by $1.5 million, or 0.9%, to $157.9 million for the three months ended September 30, 2025, compared to $159.4 million for the same period in 2024[186]. - Salaries and wages expense decreased by $4.7 million, or 6.6%, to $66.2 million for the three months ended September 30, 2025, compared to $70.9 million for the same period in 2024[187]. Market Conditions - The company expects continued volatility in economic markets, which may include recessionary signs due to uncertain U.S. policies[155]. - The company continues to monitor external factors that may impact financial performance, including economic conditions and credit quality[158]. Liquidity and Capital Management - The Company had an available borrowing capacity of $5,057.3 million with the FHLB as of September 30, 2025[234]. - Total available liquidity increased to $9.3 billion as of September 30, 2025, compared to $7.1 billion as of December 31, 2024[239]. - The company adopted a new stock repurchase program to repurchase up to $150.0 million worth of its common stock by March 31, 2027[228]. - During the three and nine months ended September 30, 2025, the company repurchased 842,903 shares of common stock at a total cost of $27.5 million[229].

Core Viewpoint - HoldCo Asset Management has expressed its intention to remain a long-term shareholder of First Interstate BancSystem, Inc. and will actively monitor the company's actions and capital allocation decisions following recent concessions made by the Board and management [2]. Group 1: Company Overview - HoldCo Asset Management, LP is an investment adviser based in Fort Lauderdale, Florida, managing approximately $2.6 billion in regulatory assets [3]. - The firm was founded by Vik Ghei and Misha Zaitzeff [3]. Group 2: Shareholder Actions - HoldCo disclosed ownership of common stock in First Interstate BancSystem, indicating an economic interest in the company's securities [1]. - The firm does not plan to pursue a proxy contest at the 2026 Annual Meeting due to recent concessions from the Board and management [2]. - However, HoldCo has stated that it will take necessary actions to protect shareholder rights and drive value if the Board's actions are inconsistent with their expectations [2].

Core Viewpoint - HoldCo Asset Management, LP has expressed its intention to remain a long-term shareholder of First Interstate BancSystem, Inc. following recent concessions made by the Board and management, and it will actively monitor the company's actions and capital allocation decisions [2]. Group 1: Company Overview - HoldCo Asset Management, LP is a Florida-based investment firm managing approximately $2.6 billion in regulatory assets under management [1][3]. - The firm was founded by Vik Ghei and Misha Zaitzeff [3]. Group 2: Shareholder Actions - HoldCo disclosed its ownership of common stock in First Interstate BancSystem, Inc., indicating an economic interest in the price of these securities [1]. - The firm does not intend to pursue a proxy contest at the 2026 Annual Meeting but reserves the right to take necessary actions to protect shareholder rights if the Board's actions are inconsistent with its expectations [2].

Financial Data and Key Metrics Changes - The company reported net income of $71.4 million, or $0.69 per diluted share, compared to $71.7 million or $0.69 per diluted share in the previous quarter [13] - Net interest income decreased by $0.4 million, or 0.2%, to $206.8 million compared to the prior quarter, but increased by $1.3 million, or 0.6%, compared to the third quarter of 2024 [13] - The fully taxable equivalent net interest margin was 3.36% for the third quarter, up from 3.32% in the second quarter [14] - Total deposits decreased by $25.6 million to $22.6 billion as of September 30, 2025 [17] Business Line Data and Key Metrics Changes - Loan balances decreased by $519 million in the third quarter, including $66.8 million from the indirect portfolio and larger loan paydowns [16] - Non-interest income was $43.7 million, an increase of $2.6 million from the prior quarter [14] - Non-interest expense increased by $2.8 million to $157.9 million, including costs related to branch divestitures [15] Market Data and Key Metrics Changes - The ratio of loans held for investment to deposits was 70.1% at the end of the quarter, down from 72.3% in the prior quarter [17] - Credit quality stabilized, with non-performing assets decreasing by $11.9 million, or 6%, to $185.6 million [10] Company Strategy and Development Direction - The company is focused on organic growth, optimizing its branch network, and improving core profitability [5] - Recent divestitures of branches in Arizona, Kansas, and Nebraska are aimed at enhancing market density and operational efficiency [6][7] - The company plans to continue investing in areas with strong market share and growth potential, including opening new locations [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in loan growth due to muted demand for real estate lending and increased competition [9] - The company anticipates a decline in loan balances in the fourth quarter but remains optimistic about growth opportunities in 2026 [32] - Management emphasized a disciplined approach to growth, focusing on credit quality and risk management [10][26] Other Important Information - The company declared a dividend of $0.47 per common share, equating to a 6% annualized yield based on the average closing price [17] - The CET1 capital ratio increased to 13.9%, driven by lower risk-weighted assets [17] Q&A Session Summary Question: Loan growth outlook for 2026 - Management indicated that loan growth is a primary focus and expressed optimism about returning to net loan growth in 2026, despite recent challenges [32][33] Question: Capital management and buyback strategy - Management confirmed that the current buyback program is a priority, but they are also considering other options for capital allocation as they assess market conditions [34][39] Question: Expectations for net interest income growth - Management provided guidance for mid-single-digit net interest income growth in 2026, with expectations for sequential improvement throughout the year [42][44] Question: Credit quality and charge-off expectations - Management reiterated a long-term charge-off guidance of 20 to 30 basis points, emphasizing that quarterly results may fluctuate based on specific credit resolutions [60][62] Question: Margin outlook and loan repricing - Management discussed the impact of loan repricing and anticipated that the margin could improve as the loan portfolio adjusts to market conditions [64][66]

Financial Performance - The company reported net income of $71.4 million, or $0.69 per share for Q3 2025[19] - Net interest margin (NIM) was 3.34%, with an adjusted FTE NIM of 3.30%, a 4 basis points increase from the previous quarter[19] - The efficiency ratio was 61.7% for the third quarter of 2025[19] Balance Sheet & Capital - Total assets reached $27.3 billion[8] - Loans held for investment (LHFI) totaled $15.8 billion[8], decreasing by $519.0 million from the second quarter of 2025[19] - Deposits amounted to $22.6 billion[8], a decrease of $25.6 million from the second quarter of 2025[19] - The company's loan-to-deposit ratio was 70% in Q3 2025[18] - CET1 was 13.90% and total RBC was 16.62% for Q3 2025[19] - The company repurchased approximately 1.8 million shares for approximately $57.2 million through October 28, 2025[18] Asset Quality - Non-performing loans (NPLs) decreased 6.1% from the second quarter of 2025, to $182.2 million, representing 1.15% of LHFI[19] - Net charge-offs (NCOs) were $2.3 million, or an annualized 6 basis points of average loans outstanding during Q3 2025[19] - Criticized loans decreased 3.2%, or $38.9 million, from the second quarter of 2025, to $1,164.1 million, representing 7.4% of LHFI[19] Strategic Initiatives - The company closed the sale of Arizona and Kansas branches in October 2025[18] - The company announced the pending sale of 11 Nebraska branches[18]

Core Insights - First Interstate BancSystem (FIBK) reported $251.9 million in revenue for Q3 2025, showing no year-over-year change, with an EPS of $0.69 compared to $0.54 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $254.9 million, resulting in a surprise of -1.18%, while the EPS exceeded the consensus estimate of $0.59 by +16.95% [1] Financial Performance Metrics - Efficiency Ratio stood at 61.7%, slightly better than the average estimate of 62.1% from two analysts [4] - Net charge-offs to average loans were reported at 0.1%, significantly lower than the average estimate of 0.3% [4] - Net FTE interest margin ratio was consistent at 3.4%, matching the average estimate from two analysts [4] - Net Interest Income was $206.8 million, below the average estimate of $210.13 million [4] - Total noninterest Income reached $43.7 million, slightly below the estimated $44.03 million [4] - Mortgage banking revenues were reported at $1.5 million, lower than the average estimate of $1.93 million [4] Stock Performance - Shares of First Interstate BancSystem have returned +1.2% over the past month, compared to a +3.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]