First Interstate BancSystem(US:FIBK)2026-01-28 21:10Financial Performance - For Q4 2025, First Interstate BancSystem reported net income of $108.8 million, or $1.08 per diluted share, up from $71.4 million, or $0.69 per diluted share in Q3 2025, and $52.1 million, or $0.50 per diluted share in Q4 2024[1][2]. - For the full year 2025, net income was $302.1 million, or $2.94 per diluted share, compared to $226.0 million, or $2.19 per diluted share in 2024, representing a 33.6% increase[2]. - Net income for Q4 2025 increased to $108.8 million, representing a 52.4% increase compared to Q3 2025 and a 108.8% increase compared to Q4 2024[42]. - Earnings per share (EPS) for Q4 2025 was $1.08, a 56.5% increase from Q3 2025 and a 111.8% increase from Q4 2024[42]. - For the year ended December 31, 2025, net income was $302.1 million, a 33.7% increase from $226.0 million in 2024[45]. - Annualized net income available to common shareholders for the quarter was $431.7 million, up from $283.3 million in the previous quarter[65]. Income and Expenses - Total noninterest income for Q4 2025 was $106.6 million, an increase of $62.9 million from Q3 2025, primarily due to a $62.7 million gain from the sale of Arizona and Kansas branches[14][16]. - Total noninterest expense for the year ended December 31, 2025, was $640.3 million, a slight increase of 0.5% from $637.4 million in 2024[45]. - The provision for credit losses in Q4 2025 was $7.1 million, compared to a reduction of $0.3 million in Q2 2025 and a decrease of 78.9% from $33.7 million in Q4 2024[42]. Asset and Liability Management - Total assets decreased by $692.3 million, or 2.5%, to $26,640.6 million as of December 31, 2025, from $27,332.9 million as of September 30, 2025, primarily due to a decrease in loans[22]. - Loans held for investment decreased by $632.8 million, or 4.0%, to $15,201.6 million as of December 31, 2025, compared to $15,834.4 million as of September 30, 2025[24]. - Total deposits decreased by $516.7 million to $22,088.3 million as of December 31, 2025, from $22,605.0 million as of September 30, 2025, primarily due to branch sales[26]. - Total interest-bearing deposits decreased by 1.5% quarter-over-quarter to $16,801.5 million, and declined by 2.4% year-over-year[50]. - The ratio of loans held for investment to deposits was 68.8% as of December 31, 2025, down from 70.1% as of September 30, 2025[25]. Capital and Equity - The common equity tier 1 capital ratio improved by 48 basis points to 14.38% in Q4 2025, driven by lower risk-weighted assets[5]. - Total common stockholders' equity (GAAP) as of December 31, 2025, is $3,447.0 million, slightly down from $3,448.7 million in the previous quarter[65]. - Tangible common stockholders' equity (Non-GAAP) increased to $2,264.8 million from $2,263.2 million quarter-over-quarter[65]. - The book value per common share increased by 2.8% quarter-over-quarter to $34.09, and rose by 7.9% year-over-year[48]. - The tangible book value per common share rose by 2.9% quarter-over-quarter to $22.40, reflecting an 11.1% increase year-over-year[48]. Credit Quality - Non-performing assets decreased by $47.3 million, or 25.5%, to $138.3 million as of December 31, 2025, compared to $185.6 million as of September 30, 2025[5]. - Net charge-offs increased to $22.1 million, or an annualized 0.56% of average loans outstanding, compared to $2.3 million, or 0.06% in Q3 2025, but decreased from $55.2 million, or 1.22% in Q4 2024[11]. - Criticized loans decreased by $112.3 million, or 9.6%, to $1,051.8 million as of December 31, 2025, from $1,164.1 million as of September 30, 2025[30]. - Non-accrual loans decreased to $133.5 million, down 26.5% from $181.6 million in the previous quarter[52]. - The allowance for credit losses decreased to $191.4 million from $205.8 million in the previous quarter, representing a 7.0% decline[52]. Operational Efficiency - The efficiency ratio improved to 52.17%, down from 61.68% in the previous quarter, indicating better operational efficiency[54]. - The return on average assets improved to 1.60% for the quarter ended December 31, 2025, compared to 1.04% in the prior quarter[54]. - Return on average common stockholders' equity (GAAP) increased to 12.40 from 8.22 quarter-over-quarter[65]. - The total risk-based capital ratio rose to 17.06%, compared to 16.62% in the previous quarter[54]. Shareholder Returns - The board of directors declared a dividend of $0.47 per common share, equating to a 5.7% annualized yield based on the average closing price of $32.72 during Q4 2025[6]. - The company paid regular common stock dividends of approximately $48.1 million, or $0.47 per share, during Q4 2025[28]. - The company repurchased approximately 3.65 million shares for a total of $117.6 million since the adoption of its $150 million stock repurchase program on August 28, 2025[5].