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Mar 31, 2025
First Interstate Q1 2025 Earnings Report
Reported financial results for the first quarter of 2025
Key Takeaways
First Interstate BancSystem, Inc. reported net income of $50.2 million for the first quarter of 2025, a decrease from the previous quarter and the same period last year. The net interest margin increased, but non-performing assets and criticized loans also saw significant increases. The company continued to improve its capital ratios.
Net interest margin increased to 3.19%, a 1-basis point increase from the prior quarter and a 28-basis point increase from the first quarter of 2024.
Non-performing assets increased by 36.3% to $198.4 million, primarily due to increases in non-accrual commercial real estate, agricultural real estate, and agricultural loans.
Criticized loans increased by 32.7% to $1,026.1 million, driven primarily by downgrades in the commercial real estate loan portfolio.
Net charge-offs decreased significantly to $9.0 million from $55.2 million in the previous quarter, but increased slightly from $8.4 million in the first quarter of 2024.
Revenue by Segment
Forward Guidance
The company did not provide specific forward guidance figures in this report. However, they expressed optimism about continued improvement in net interest margin and balance sheet flexibility, while acknowledging increased criticized and non-performing assets.
Positive Outlook
- Pleased to see continued improvement in net interest margin.
- Net interest margin expanded for the fourth consecutive quarter.
- Continue to prudently manage expenses.
- Investing in the future growth of the Company.
- Pleased with the continued reduction in outstanding borrowings.
Challenges Ahead
- Criticized and non-performing assets increased quarter over quarter.
- Acknowledging the need to continue a prudent, proactive approach to credit risk management.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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