First Interstate BancSystem(US:FIBK)2025-11-06 20:22Financial 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].