First Interstate BancSystem (FIBK) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $83.9 million ($0.87 per diluted share), up from $60.2 million in Q1 2026 and $71.7 million in Q2 2025, driven by a $19.5 million gain from the sale of eleven Nebraska branches and improved net interest margin.

• The company continued optimizing its branch network, closing and selling branches in Nebraska and other states, while opening a new branch in Montana.

• Ongoing share repurchases reached $270.3 million through June 30, 2026, with an additional $150 million authorized, and 1.93 million shares repurchased in Q2 2026 for $68.7 million.

Financial highlights

• Net interest income for Q2 2026 was $202.2 million, up $1.5 million sequentially but down $5.0 million year-over-year; net interest margin increased to 3.45% from 3.41% in Q1 2026 and 3.30% in Q2 2025.

• Noninterest income rose by $20.6 million to $61.7 million, mainly due to the Nebraska branch sale gain.

• Noninterest expense was $158.9 million, up $1.3 million sequentially and $3.8 million year-over-year, reflecting higher advertising, technology, and employee benefit costs.

• Dividend declared at $0.47 per share, a 5.3% annualized yield.

• Allowance for credit losses was $182.2 million (1.28% of loans) at June 30, 2026.

Outlook and guidance

• Management expects continued improvement in net interest margin and returns, with guidance reflecting lower ending loans, a smaller earning asset base, and ongoing pressure in higher-cost deposit categories.

• Mortgage production is forecasted to decline meaningfully in the near term.

• Year-end 2026 deposits expected between $21.5–$22.0 billion; loans between $13.5–$13.8 billion.

• Full-year reported net interest income projected at $810–$820 million, with continued margin expansion.

• Management anticipates continued economic volatility and maintains ample liquidity and capital ratios above regulatory requirements.