First Interstate BancSystem (FIBK) investor relations material

Executive summary

• Net income for Q1 2026 was $60.2 million ($0.61 per diluted share), up from $50.2 million in Q1 2025 but down from $108.8 million in Q4 2025, with continued net interest margin expansion and strong capital ratios.

• Completed a major redesign of the banking organization, streamlining structure and integrating top talent to enhance client experience and drive production, especially in key markets like Colorado.

• Maintains a robust liquidity position and diversified loan and deposit base, despite decreases in both due to branch sales and portfolio run-off.

• Ongoing branch network optimization, including the sale and closure of branches in Nebraska, Arizona, Kansas, Iowa, and Oregon, and continued capital return to shareholders through dividends and share repurchases.

• Ongoing investments in digital channels, data management, and AI to improve efficiency and customer experience.

Financial highlights

• Net interest income was $200.7 million, down $4.3 million year-over-year and $5.7 million sequentially, mainly due to lower average loan balances.

• Net interest margin increased to 3.41% (up 5 bps sequentially and 22 bps year-over-year); fully tax-equivalent NIM was 3.43%.

• Noninterest income was $41.1 million, down $65.5 million sequentially due to prior period branch sale gains, and down $0.9 million year-over-year.

• Noninterest expense was $157.6 million, down $9.1 million sequentially and $3.0 million year-over-year, with an efficiency ratio of 63.8%.

• Loans decreased by $473.2 million, including declines in indirect and agricultural portfolios; deposits decreased by $205.3 million sequentially and $849.8 million year-over-year, mainly due to branch sales.

Outlook and guidance

• Guidance anticipates a further decline in loan balances in Q2, with stabilization and modest growth in the second half of 2026.

• Full-year 2026 net interest income projected at $825–$845 million, with continued margin expansion; noninterest income expected at $168–$173 million, excluding Nebraska branch sale gains.

• Noninterest expense forecasted at $630–$643 million, reflecting reinvestment and normalization of insurance costs.

• Expect continued sequential net interest margin expansion through 2026 and into 2027, driven by loan repricing and amortization of lower-yielding securities.

• Guidance incorporates the impact of the Nebraska branch sale but excludes the anticipated $19–$19.5 million gain on sale.