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.