First Interstate Bancsystem (4FB) Q3 2026 Earnings Report

The call was predominantly positive. Management highlighted a tenth consecutive quarter of net interest margin expansion, improving core deposits and customer acquisition, year-over-year credit improvement, disciplined capital returns, and stronger commercial production capacity. These positives were partly offset by sequential declines in net income, loans, and non-interest income, higher credit provisions, increased unrealized investment losses, near-term pressure on earning-asset mix, and an expected moderation in fourth-quarter margin expansion.

Fourth-quarter guidance includes more meaningful payoffs within the commercial loan portfolio, further success in exiting some non-relationship and out-of-market credits, and deposits generally implying about flat YoY when backing out some of those branch sales and that large deposit; seasonality tends to be strong early in the fourth quarter, a little bit weaker late. Net interest income guidance at the midpoint assumes expansion in NII into the fourth quarter, while the company expects a smaller sequential margin benefit in the fourth quarter than realized in the third quarter. The company expects loans decline, deposits flat to higher in the fourth quarter, and continued pressure on the mix. The expense forecast includes continued investment, two branches in Colorado in the first half of 2027, and consolidating three additional locations in the fourth quarter of this year; YoY, it is reasonable to expect normal inflationary factors on the expense base. No specific quarterly target was provided for repurchases, and the company said it is too early to provide a 2027 guide.