First Interstate BancSystem, Inc. FIBK Q2 2026 earnings

Noninterest income was $61.7 million for the second quarter of 2026, increasing $20.6 million compared to the first quarter of 2026 and increasing $20.6 million compared to the second quarter of 2025. The increases from the first quarter of 2026 and the second quarter of 2025 were primarily due to the $19.5 million gain recorded in other income from the previously announced sale of the eleven Nebraska branches during the second quarter of 2026.

Payment services revenues increased $1.2 million and decreased $1.0 million during the second quarter of 2026 compared to the first quarter of 2026 and the second quarter of 2025, respectively. The linked quarter increase was primarily due to an increase in business credit card and debit card interchange revenues during the second quarter of 2026. The year-over-year decrease was mainly the result of lower consumer credit card interchange during the second quarter of 2026 as compared to the second quarter of 2025, related to the outsourcing of consumer credit cards in the second quarter of 2025.

The Company’s noninterest expense was $158.9 million for the second quarter of 2026, an increase of $1.3 million from the first quarter of 2026 and an increase of $3.8 million from the second quarter of 2025.

Salaries and wages expense decreased $3.6 million to $64.9 million during the second quarter of 2026 compared to the first quarter of 2026, primarily due to lower short-term incentive accruals of $1.6 million, lower salary and wages, and lower severance accruals during the second quarter of 2026. Salaries and wages expense decreased $0.1 million to $64.9 million during the second quarter of 2026 compared to $65.0 million during the second quarter of 2025.

Employee benefit expenses decreased $2.2 million to $19.0 million during the second quarter of 2026, compared to $21.2 million during the first quarter of 2026, primarily due to lower payroll taxes, partially offset by higher long-term incentives. Employee benefit expenses increased $1.1 million from $17.9 million during the second quarter of 2025, primarily due to higher health insurance costs during the second quarter of 2026.

Other expenses increased $6.0 million during the second quarter of 2026 compared to the first quarter of 2026, primarily due to an increase of $1.2 million in professional fees, $0.8 million in donations, $0.6 million in FDIC insurance premiums, and various other expense categories. Other expenses increased $2.9 million during the second quarter of 2026 compared to the second quarter of 2025, primarily due to an increase of $1.0 million in advertising expense.

Other real estate owned expense, net increased $1.7 million during the second quarter of 2026 compared to the first quarter of 2026, primarily due to a positive fair value adjustment to a commercial property during the first quarter of 2026. Other real estate owned expense, net increased $0.6 million during the second quarter of 2026 compared to the second quarter of 2025.

BALANCE SHEET

Total assets decreased $541.8 million, or 2.1%, to $25,885.0 million as of June 30, 2026, from $26,426.8 million as of March 31, 2026, primarily due to a decrease of $515.7 million in loans as a result of payoffs and paydowns, including $64.1 million of loans related to the sale of the eleven Nebraska branches during the second quarter of 2026. Total assets decreased $1,681.4 million from $27,566.4 million as of June 30, 2025, primarily due to a decrease of $2,405.1 million in loans which were partially driven by the sale of the branches in Arizona and Kansas during the fourth quarter of 2025 and the sale of eleven branches in Nebraska during the second quarter of 2026. The loan declines were partially offset by an increase in investment securities of $673.4 million.

Investment securities decreased $24.4 million to $7,985.6 million as of June 30, 2026, from $8,010.0 million as of March 31, 2026, primarily resulting from pay-downs, maturities, called securities, and a $10.4 million decrease in fair market values, partially offset by purchases of investment securities during the second quarter of 2026. Investment securities increased $673.4 million from $7,312.2 million as of June 30, 2025, primarily resulting from purchases of investment securities and a $38.5 million increase in fair market values during the period, partially offset by pay-downs, maturities, and called securities.

The following table presents the composition and comparison of loans held for investment as of the quarters-ended:

The decline in loans was impacted by $50.4 million of continued amortization of the indirect portfolio for which the Company stopped originating loans during the first quarter of 2025, and loan payoffs and paydowns.

The ratio of loans held for investment to deposits was 66.6%, as of June 30, 2026, compared to 67.3% as of March 31, 2026 and 72.3% as of June 30, 2025.

Total deposits decreased $441.7 million, or 2.0%, to $21,441.3 million as of June 30, 2026, from $21,883.0 million as of March 31, 2026, across all interest bearing deposit categories during the second quarter, primarily driven by the sale of eleven Nebraska branches that included $244.2 million of deposits. Total deposits decreased $1,189.3 million, or 5.3%, compared to $22,630.6 million as of June 30, 2025, across all deposit categories, primarily driven by the Arizona and Kansas sold branches that included $641.6 million of deposits in addition to the deposits sold with the eleven Nebraska sold branches.

Other borrowed funds is comprised of variable-rate, overnight and fixed-rate borrowings with remaining contractual tenors of up to one year through the Federal Home Loan Bank. Other borrowed funds were zero as of June 30, 2026 and March 31, 2026. Other borrowed funds decreased $250.0 million from June 30, 2025. The decrease was funded by cash flows from paydowns and maturities of loans.

The Company is considered to be “well-capitalized” as of June 30, 2026, having exceeded all regulatory capital adequacy requirements. During the second quarter of 2026, the Company paid regular common stock dividends of approximately $46.0 million, or $0.47 per share, and repurchased approximately 1.9 million shares of common stock at a weighted-average price of $35.61 per share pursuant to its stock repurchase program.

CREDIT QUALITY

As of June 30, 2026, non-performing assets increased $2.5 million, or 1.5%, to $165.0 million, compared to $162.5 million as of March 31, 2026, primarily as a result of an increase in non-accrual loans, partially offset by a decrease of $1.3 million in OREO.

Criticized loans decreased $95.8 million, or 9.3%, to $937.4 million as of June 30, 2026, from $1,033.2 million as of March 31, 2026, primarily as a result of payoffs and paydowns, as well as upgrades in the portfolio.

NON-GAAP FINANCIAL MEASURES

In addition to results presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, this press release contains the following non-GAAP financial measures that management uses to evaluate our performance relative to our capital adequacy standards: (i) tangible common stockholders’ equity; (ii) tangible assets; (iii) tangible book value per common share; (iv) tangible common stockholders’ equity to tangible assets; (v) average tangible common stockholders’ equity; (vi) return on average tangible common stockholders’ equity; (vii) net FTE interest income; (viii) net FTE interest margin ratio; (ix) adjusted net FTE interest income; and (x) adjusted net FTE interest margin ratio. Tangible common stockholders’ equity is calculated as total common stockholders’ equity less goodwill and other intangible assets (excluding mortgage servicing rights). Tangible assets are calculated as total assets less goodwill and other intangible assets (excluding mortgage servicing rights). Tangible book value per common share is calculated as tangible common stockholders’ equity divided by common shares outstanding. Tangible common stockholders’ equity to tangible assets is calculated as tangible common stockholders’ equity divided by tangible assets. Average tangible common stockholders’ equity is calculated as average total stockholders’ equity less average goodwill and other intangible assets (excluding mortgage servicing rights). Return on average tangible common stockholders’ equity is calculated as annualized net income available to common shareholders divided by average tangible common stockholders’ equity. Net FTE interest income is calculated as net interest income, adjusted to include its FTE interest income. Net FTE interest margin ratio is calculated as net FTE interest income divided by average interest earning assets. Adjusted net FTE interest income is calculated as net FTE interest income less purchase accounting interest accretion on acquired loans. Adjusted net FTE interest margin ratio is calculated as annualized adjusted net FTE interest income divided by average interest earning assets. These non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies because other companies may not calculate these non-GAAP measures in the same manner. They also should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP.

The Company adjusts the most directly comparable capital adequacy GAAP financial measures to the non-GAAP financial measures described in subclauses (i) through (vi) above to exclude goodwill and other intangible assets (except mortgage servicing rights), adjusts its GAAP net interest income to include fully taxable equivalent adjustments and further adjusts its net interest income on a fully taxable equivalent basis to exclude purchase accounting interest accretion. Management believes these non-GAAP financial measures, which are intended to complement the capital ratios defined by banking regulators and to present on a consistent basis our and our acquired companies’ organic continuing operations without regard to acquisition costs and other adjustments that we consider to be unpredictable and dependent on a significant number of factors that are outside our control, are useful to investors in evaluating the Company’s performance because, as a general matter, they either do not represent an actual cash expense and are inconsistent in amount and frequency depending upon the timing and size of our acquisitions (including the size, complexity and/or volume of past acquisitions, which may drive the magnitude of acquisition related costs, but may not be indicative of the size, complexity and/or volume of future acquisitions or related costs), or they cannot be anticipated or estimated in a particular period (in particular as it relates to unexpected recovery amounts). This impacts the ratios that are important to analysts and allows investors to compare certain aspects of the Company’s capitalization to other companies.

See the “Non-GAAP Financial Measures” table included herein and the textual discussion for a reconciliation of the above-described non-GAAP financial measures to their most directly comparable GAAP financial measures.

Cautionary Note Regarding Forward-Looking Statements and Factors that Could Affect Future Results This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. Any statements about our plans, objectives, expectations, strategies, beliefs, or future performance, financial condition, results of operations, investment portfolio, market position, or events constitute forward-looking statements. Such statements are generally identified by words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trends,” “objectives,” “continues”, “projected,” as well as the negative forms of those words or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” as well as the negative forms of those words or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other important factors that could cause actual results to differ materially from any results, performance or events expressed or implied by such forward-looking statements. Furthermore, the following factors, among others, may cause actual results to differ materially from current expectations in the forward-looking statements, including those set forth in this press release:

• new or changes in existing governmental regulations or in the way such regulations are interpreted or enforced;
• negative developments in the banking industry and increased regulatory scrutiny;
• tax legislative initiatives or assessments;
• more stringent capital requirements, to the extent they may become applicable to us;
• changes in accounting standards;
• any failure to comply with applicable laws and regulations, including, but not limited to, the Community Reinvestment Act and fair lending laws, the USA PATRIOT ACT of 2001, the Office of Foreign Assets Control guidelines and requirements, the Bank Secrecy Act, and the related Financial Crimes Enforcement Network and Federal Financial Institutions Examination Council Guidelines and regulations;
• federal deposit insurance assessment rate increases;
• lending risks and risks associated with loan portfolio concentrations;
• a decline in economic conditions that could reduce demand for our products and services and negatively impact the credit quality of loans;
• credit losses on loans exceeding estimates;
• potential effects on the U.S. economy resulting from the implementation of governmental policies, including tax regulations and changes to United States trade policies, including the imposition of tariffs and retaliatory tariffs and geopolitical uncertainty;
• the soundness of other financial institutions;
• the ability to meet cash flow needs and availability of financing sources for working capital and other needs;
• a loss of deposits or a change in product mix that increases the Company’s funding costs;
• inability to access funding or to monetize liquid assets;
• changes in interest rates;
• interest rate effect on the value of our investment securities;
• cybersecurity risks, including business disruptions from denial-of-service attacks, network intrusions, business e-mail compromise, and other malicious behavior that could result in the disclosure of confidential information;
• privacy, information security, and data protection laws, rules, and regulations that affect or limit how we collect and use personal information or otherwise have an adverse effect on us;
• the potential impairment of our goodwill and other intangible assets;
• our reliance on third parties that provide key components of our business infrastructure;
• events that may tarnish our reputation;
• mainstream and social media contagion;
• the loss of the services of key members of our management team and directors;
• our ability to attract and retain qualified employees to operate our business;
• costs associated with repossessed properties, including potential environmental remediation;
• the effectiveness of our operational processes, policies and procedures, and internal control over financial reporting;
• our ability to implement technology-facilitated products and services or be successful in marketing these products and services to our clients;
• the development and use of artificial intelligence ("AI");
• risks related to acquisitions, mergers, strategic partnerships, divestitures, and other transactions;
• competition from new or existing financial institutions and non-banks;
• investing in technology;
• incurrence of significant costs related to mergers and related integration activities;
• the volatility in the price and trading volume of our common stock;
• “anti-takeover” provisions in our certificate of incorporation and regulations, which may make it more difficult for a third party to acquire control of us even in circumstances that could be deemed beneficial to stockholders;
• changes in our dividend policy or our ability to pay dividends;
• the possibility that we may fail to realize the anticipated benefits of our stock repurchase program;
• our common stock not being an insured deposit;
• the potential dilutive effect of future equity issuances;
• the subordination of our common stock to our existing and future indebtedness;
• the effect of global conditions, earthquakes, volcanoes, tsunamis, floods, fires, drought, and other natural catastrophic events; and
• the impact of climate change and environmental sustainability matters.

The foregoing factors are not necessarily all of the factors that could cause our actual results, performance, or achievements to differ materially from expectations. Other unknown or unpredictable factors also could harm our results.

All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and included and described in more detail in our periodic reports filed with the Securities and Exchange Commission, or SEC, under the Securities Exchange Act of 1934, as amended, under the caption “Risk Factors.” Interested parties are urged to read in their entirety such risk factors prior to making any investment decision with respect to the Company. Forward-looking statements speak only as of the date they are made, and we do not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

Second Quarter 2026 Conference Call for Investors First Interstate BancSystem, Inc. will host a conference call to discuss the results for the second quarter of 2026 at 9:30 a.m. Eastern Time (7:30 a.m. Mountain Time) on Friday, July 24, 2026. The conference call will be accessible by telephone and through the Internet. Participants may join the call by dialing 1-833-461-5787; the access code is 544064138. To participate via the Internet, visit www.FIBK.com. The webcast call will be recorded and made available for replay on July 24, 2026, after 1:30 p.m. Eastern Time (11:30 a.m. Mountain Time), through July 23, 2027, prior to 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time), by visiting http://events.q4inc.com/attendee/544064138. The call will also be archived on our website, www.FIBK.com, for one year.

About First Interstate BancSystem, Inc.

First Interstate BancSystem, Inc. is a financial and bank holding company focused on community banking. Incorporated in 1971 and headquartered in Billings, Montana, the Company operates banking offices, including detached drive-up facilities, in communities across Colorado, Idaho, Iowa, Missouri, Montana, Nebraska, Oregon, South Dakota, Washington, and Wyoming, in addition to offering online and mobile banking services. Through our bank subsidiary, First Interstate Bank, the Company delivers a comprehensive range of banking products and services to individuals, businesses, municipalities, and others throughout the Company’s market areas.

FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES

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