FIBK · First Interstate BancSystem, Inc. Q2 FY2026 earnings call record财报电话会记录

“We have increased our repurchase authorization by an additional $150 million along with our earnings release, bringing the total authorization to date to $450 million.”

“Our fully taxable equivalent net interest margin was 3.48% for the second quarter, compared to 3.43% during the first quarter and to 3.32% during the second quarter of 2025.”

“Non-interest expense was $158.9 million for the second quarter of 2026, an increase of $1.3 million from the prior quarter, driven by an increase in other expenses, including higher advertising expense, professional fees, mostly related to new branding efforts, an increase in donations expense, costs related to branch closures, and various smaller expense items.”

“We expect accelerated payoff activity to continue through the rest of 2026, again pulling forward some of our previous out-of-year payoff expectations, which we anticipate will create variability in near-term reported balance growth despite improving commercial production.”

“Total deposits decreased $441.7 million to $21.4 billion as of June 30th, 2026, with more than half of the impact in the quarter driven by the sale of $244 million of deposits in the Nebraska branch transaction.”

“The ratio of loans held for investment to deposits was 66.6% at the end of the quarter, compared to 67.3% at the end of the prior quarter and 72.3% at the end of the second quarter of last year.”

“Criticized loans decreased $95.8 million, or 9.3% from the prior quarter, and over the past 12 months, criticized loans have declined 22%.”

“We repurchased approximately 1.9 million shares in the second quarter, totaling approximately $69 million, and repurchases since initiation of the program in August totaled about $270 million.”

“Share repurchases remain a key capital allocation tool to drive shareholder value, and we anticipate remaining active in coming quarters.”

“Finally, we declared a dividend of $0.47 per common share, which equates to a 5.3% annualized yield based on the average closing price of the company's common stock during the second quarter.”

“On the deposit side, the guidance incorporates the positive trends we are seeing within customer acquisition, offset by an expectation for continued pressure in higher cost of deposit categories.”

“Over the prior 12 months, net interest margin has improved 16 basis points, average deposits per average diluted share has improved approximately 2%, average deposits per branch has improved 6%, and net interest income per share has improved 4%.”