First Interstate BancSystem reported third‑quarter 2025 results, posting net income of $71.4 million, or $0.69 per diluted share. Net income fell slightly from $71.7 million in Q2 2025 but rose 29 % from $55.5 million in Q3 2024.
Net interest income for the quarter was $206.8 million, a $0.4 million decline from $207.2 million in Q2 2025 and a $1.3 million increase from $205.5 million in Q3 2024. The net interest margin expanded to 3.34%, up 4 basis points from Q2 and 33 basis points from Q3 2024, driven by a reduction in average other borrowed funds balances and a modest increase in net interest income.
Net charge‑offs were $2.3 million, down from $5.8 million in Q2 2025 and $27.4 million in Q3 2024, reflecting improved credit quality. However, criticized loans remained elevated at $1.2 billion, nearly double the prior year’s level.
The company declared a dividend of $0.47 per share, payable on November 20 2025 to shareholders of record as of November 10 2025. The dividend yields a 6.0 % annualized return based on the average closing price during the quarter and is unchanged from the prior declaration.
First Interstate highlighted a strategic shift toward organic, relationship‑driven growth and balance‑sheet de‑risking. Management noted the elimination of $250 million in expensive borrowed funds, which contributed to margin expansion and reduced charge‑offs. The company’s common equity tier 1 capital ratio increased to 13.90%, underscoring a stronger capital position.
Revenue for the quarter was $206.8 million, below analyst consensus of $254.46 million, marking a miss of $47.66 million. The shortfall was attributed to lower‑than‑expected loan growth and weaker deposit growth in the Midwest market.
The company did not provide forward guidance for the next quarter or fiscal year.
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