First Interstate BancSystem Q2 profit rises on branch sale gain

First Interstate BancSystem

23/07/2026 21:21

    

    Overview
  
U.S. community bank's Q2 net income and EPS rose both yr/yr and sequentially
Company recorded $19.5 mln gain from sale of Nebraska branches, reducing deposits
Repurchased $68.7 mln in shares and expanded buyback program by $150 mln

    

    Outlook
  
Company did not provide specific financial guidance for the current quarter or full year

    

    Result Drivers
  
BRANCH SALE GAIN - Q2 results included a $19.5 mln gain from the sale of eleven Nebraska branches, which also reduced deposits and loans
NET INTEREST MARGIN IMPROVEMENT - Net interest margin rose to 3.45%, driven by lower interest expense on time deposits and higher investment yields, partially offset by lower loan balances after branch sales
CREDIT QUALITY IMPROVEMENT - Criticized loans decreased $95.8 mln sequentially, reflecting payoffs, paydowns, and upgrades in the portfolio

    
Company press release: ID:nBw71Mbbqa

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Payment Service Revenue
 
$16.8 mln
 
Q2 EPS
 
$0.87
 
Q2 Net Income
 
$83.9 mln
 
Q2 Net Interest Income
 
$202.2 mln
 
Q2 Credit Loss Provision
 
-$3.2 mln
 
Q2 Pretax Profit
 
$108.2 mln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for First Interstate Bancsystem Inc is $38.00, about 1% below its July 22 closing price of $38.39
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

    

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)