Q2 2026 First Interstate Bancsystem Inc Earnings Call Transcript
Key Points
- Net interest margin expanded for the ninth consecutive quarter, indicating improved profitability.
- Deposit costs continued to decline, enhancing the bank's cost efficiency.
- Criticized loans decreased by 9.3% from the prior quarter, reflecting improved credit quality.
- The company repurchased approximately 1.9 million shares, returning $69 million to shareholders, and increased the repurchase authorization by $150 million.
- Noninterest income increased significantly by $20.6 million from the prior quarter, driven by a gain from a branch transaction.
- Loan balances declined more than expected due to elevated payoffs, impacting growth.
- Total deposits decreased by $441.7 million, partly due to the sale of deposits in a branch transaction.
- Net charge-offs increased by $7.3 million in the second quarter, indicating higher credit losses.
- The company anticipates continued payoff pressure in the near term, which may affect loan growth.
- Mortgage production trailed expectations, leading to a forecasted decline in that portfolio.
Hello, everyone. Thank you for joining us, and welcome to the First Interstate BancSystem Inc. Second Quarter 2026 Earnings Call. (Operator Instructions)
I will now hand the conference over to Nancy Vermeulen. Please go ahead.
Thanks very much. Good morning, and thank you for joining us for our second quarter earnings conference call. As we begin, please note that the information provided during this call will contain forward-looking statements. Actual results or outcomes might differ materially from those expressed by those statements. I'd like to direct all listeners to read the cautionary note regarding forward-looking statements contained in our most recent quarterly report on Form 10-K filed with the SEC and in our earnings release as well as the risk factors identified in the quarterly report and our more recent periodic reports filed with the SEC.
Relevant factors that could cause actual results to differ materially from any forward-looking statements are
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