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Jun 30
First Interstate Q2 2025 Earnings Report
First Interstate delivered lower Q2 2025 earnings due to margin pressure and loan provisioning, despite stable fee income and strong capital levels.
Key Takeaways
First Interstate BancSystem reported net income of $39.4 million and diluted EPS of $0.40 for Q2 2025. Revenue was impacted by lower net interest income due to margin compression, while non-interest income remained flat and credit quality metrics were stable.
Net income was $39.4 million with diluted EPS of $0.40.
Revenue reached $242.5 million for the quarter.
Net interest margin declined to 3.08% from 3.14% in Q1 2025.
Credit quality remained stable with low non-performing asset ratios.
First Interstate
First Interstate
First Interstate Revenue by Segment
Revenue by Segment
Payment Services Revenue
CapyFin.comWealth Management Revenue
CapyFin.comMortgage Banking Revenue
CapyFin.comService Charges Revenue
CapyFin.comOther Service Charges Revenue
CapyFin.com Forward Guidance
First Interstate expects continued pressure on net interest margin but sees stable credit trends and a focus on expense management to support profitability.
Positive Outlook
- Loan growth anticipated in second half of 2025.
- Stable credit metrics with low non-performing assets.
- Capital ratios remain strong across all regulatory metrics.
- Non-interest income expected to remain resilient.
- Continued discipline in expense control.
Challenges Ahead
- Net interest margin expected to remain compressed.
- Deposit pricing pressure persists.
- Non-accrual loan levels could rise modestly.
- Slower loan demand in certain sectors.
- Regulatory capital build may limit share repurchases.