First Interstate BancSystem Reports Q1 2025 Earnings: Margin Expands, Credit Risk Rises

First Interstate BancSystem, Inc. (NASDAQ: FIBK) posted net income of $50.2 million, or $0.49 per diluted share, in Q1 2025—down from $58.4 million ($0.57/share) a year ago. Net interest margin expanded for the fourth straight quarter to 3.19%, while adjusted net FTE margin rose to 3.14%, aided by lower borrowing costs. However, credit quality indicators deteriorated: non-performing assets rose 36% to $198.4 million, and criticized loans surged 33% quarter-over-quarter to over $1 billion, primarily driven by downgrades in commercial real estate. Loan loss provisions were $20 million, up from $5.3 million a year ago. Deposits declined 1.2% sequentially, while other borrowed funds fell 39% to $960 million. Tangible book value per share grew 2.5% to $20.67, and the company declared a $0.47 quarterly dividend.

First Interstate BancSystem Announces Director Retirements
Billings, MT – March 19, 2025 – First Interstate BancSystem, Inc. (NASDAQ: FIBK) announced the upcoming retirements of Thomas E. Henning and Frances P. Grieb from its Board of Directors.

Thomas E. Henning, a Class II director, will step down at the 2025 annual meeting in accordance with the company's retirement policy at age 72.
Frances P. Grieb, a Class I director, has decided not to seek re-election and will also retire at the 2025 annual meeting.
Both directors joined the board following First Interstate’s 2022 acquisition of Great Western Bancorp, Inc. and will continue serving until their retirements. The company expressed gratitude for their contributions.

First Interstate BancSystem, Inc. announced that Marcy D. Mutch will retire as Executive Vice President and Chief Financial Officer effective May 31, 2025. She will transition to an Executive Advisor role until December 31, 2025, and subsequently serve as a non-employee consultant through December 31, 2026. David P. Della Camera, the current Deputy Chief Financial Officer, will succeed her as CFO on June 1, 2025.

During the transition period, Mutch will continue to receive her current salary and remain eligible for incentive awards and benefits. As an Executive Advisor, she will assist with the CFO transition and investor relations while receiving a prorated incentive award. In her consulting role, she will be compensated with time-based restricted stock units valued at $860,000.

Della Camera, age 31, has held various leadership roles at First Interstate, including Director of Corporate Development and Financial Strategy. His new employment agreement will include a $500,000 annual base salary, a short-term incentive target of 70% of salary, and a long-term incentive target also set at 70%.

source: First Interstate BancSystem, Inc., SEC Form 8-K, February 25, 2025.