3 Reliable Dividend Stocks Offering Up To 6.8% Yield
Name
Dividend Yield
Dividend Rating
Universal (UVV)
5.51%
★★★★★★
Southside Bancshares (SBSI)
4.98%
★★★★★☆
Peoples Bancorp (PEBO)
5.49%
★★★★★☆
Huntington Bancshares (HBAN)
3.86%
★★★★★☆
First Interstate BancSystem (FIBK)
6.85%
★★★★★★
Ennis (EBF)
5.26%
★★★★★★
Dillard's (DDS)
6.45%
★★★★★★
Credicorp (BAP)
5.15%
★★★★★☆
CompX International (CIX)
4.90%
★★★★★★
Columbia Banking System (COLB)
6.29%
★★★★★★
Click here to see the full list of 150 stocks from our Top US Dividend Stocks screener.
Here's a peek at a few of the choices from the screener.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Cathay General Bancorp is the holding company for Cathay Bank, providing a range of commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States, with a market cap of approximately $3.12 billion.
Operations: Cathay General Bancorp generates its revenue primarily from its banking segment, which accounts for $691.28 million.
Dividend Yield: 3.1%
Cathay General Bancorp offers a stable dividend with a current yield of 3.05%, though below the top quartile of US dividend payers. The company's dividends have shown reliability and stability over the past decade, supported by a low payout ratio of 34.2%, indicating sustainability. Recent announcements include a $0.34 per share dividend and an ongoing buyback program, underscoring management's commitment to returning capital to shareholders despite recent net charge-offs reported in Q1 2025.
Click here to discover the nuances of Cathay General Bancorp with our detailed analytical dividend report.
Our valuation report unveils the possibility Cathay General Bancorp's shares may be trading at a discount.
Simply Wall St Dividend Rating: ★★★★★★
Overview: First Interstate BancSystem, Inc. is a bank holding company for First Interstate Bank, offering various banking products and services across the United States with a market cap of approximately $2.88 billion.
Operations: First Interstate BancSystem, Inc. generates its revenue primarily through its Community Banking segment, which accounts for $922 million.
Dividend Yield: 6.8%
First Interstate BancSystem offers a high dividend yield of 6.85%, ranking in the top 25% of US dividend payers, with stable and growing payments over the past decade. The payout ratio stands at 88.9%, indicating current earnings coverage, with forecasts suggesting improved sustainability. Recent developments include a $125 million fixed-income offering and executive changes, as David P. Della Camera becomes CFO, potentially impacting strategic financial decisions moving forward.
Dive into the specifics of First Interstate BancSystem here with our thorough dividend report.
The analysis detailed in our First Interstate BancSystem valuation report hints at an deflated share price compared to its estimated value.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Preferred Bank offers a range of banking products and services to small and mid-sized businesses, entrepreneurs, real estate developers, professionals, and high net worth individuals, with a market cap of approximately $1.06 billion.
Operations: Preferred Bank generates revenue primarily through its commercial banking segment, which accounts for $265.95 million.
Dividend Yield: 3.5%
Preferred Bank's dividend payments are well-covered by earnings, with a payout ratio of 30.3%, and have been stable over the past decade. The recent declaration of a US$0.75 per share dividend continues this trend, though its yield of 3.52% is below top-tier payers in the US market. The bank has also initiated a new share repurchase program worth up to US$125 million, signaling confidence in its financial position despite recent declines in net income and interest income.
Click here and access our complete dividend analysis report to understand the dynamics of Preferred Bank.
Our comprehensive valuation report raises the possibility that Preferred Bank is priced lower than what may be justified by its financials.
Gain an insight into the universe of 150 Top US Dividend Stocks by clicking here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CATY FIBK and PFBC.
This article was originally published by Simply Wall St.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
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Yahoo
5 days ago
- Yahoo
First Interstate BancSystem (NASDAQ:FIBK) Will Pay A Dividend Of $0.47
First Interstate BancSystem, Inc.'s (NASDAQ:FIBK) investors are due to receive a payment of $0.47 per share on 21st of August. This means the annual payment is 6.6% of the current stock price, which is above the average for the industry. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. First Interstate BancSystem's Dividend Forecasted To Be Well Covered By Earnings A big dividend yield for a few years doesn't mean much if it can't be sustained. Having distributed dividends for at least 10 years, First Interstate BancSystem has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but First Interstate BancSystem's payout ratio of 84% is a good sign as this means that earnings decently cover dividends. The next 3 years are set to see EPS grow by 32.1%. Despite the current payout ratio being slightly elevated, analysts estimate the future payout ratio will be 69% over the same time period, which would make us comfortable with the sustainability of the dividend. Check out our latest analysis for First Interstate BancSystem First Interstate BancSystem Has A Solid Track Record The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2015, the dividend has gone from $0.64 total annually to $1.88. This works out to be a compound annual growth rate (CAGR) of approximately 11% a year over that time. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time. The Dividend's Growth Prospects Are Limited Investors could be attracted to the stock based on the quality of its payment history. However, initial appearances might be deceiving. First Interstate BancSystem has seen earnings per share falling at 3.3% per year over the last five years. Declining earnings will inevitably lead to the company paying a lower dividend in line with lower profits. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this can turn into a longer term trend. Our Thoughts On First Interstate BancSystem's Dividend In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about First Interstate BancSystem's payments, as there could be some issues with sustaining them into the future. We can't deny that the payments have been very stable, but we are a little bit worried about the very high payout ratio. Overall, we don't think this company has the makings of a good income stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. Given that earnings are not growing, the dividend does not look nearly so attractive. Businesses can change though, and we think it would make sense to see what analysts are forecasting for the company. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Business Wire
29-07-2025
- Business Wire
First Interstate BancSystem, Inc. Reports Second Quarter Earnings
BILLINGS, Mont.--(BUSINESS WIRE)--First Interstate BancSystem, Inc. (NASDAQ: FIBK) (the 'Company') today reported financial results for the second quarter of 2025. For the quarter, the Company reported net income of $71.7 million, or $0.69 per diluted share, which compares to net income of $50.2 million, or $0.49 per diluted share, for the first quarter of 2025 and net income of $60.0 million, or $0.58 per diluted share, for the second quarter of 2024. HIGHLIGHTS Net interest margin increased to 3.30% for the second quarter of 2025, an 11-basis point increase from the first quarter of 2025 and a 33-basis point increase from the second quarter of 2024. Adjusted net FTE interest margin ratio 1 increased to 3.26% for the second quarter of 2025, or a 12-basis point increase from the first quarter of 2025 and a 34-basis point increase from the second quarter of 2024. Other borrowed funds decreased $710.0 million, or 74.0%, to $250.0 million as of June 30, 2025, from $960.0 million as of March 31, 2025 and decreased $2,180.0 million from $2,430.0 million as of June 30, 2024. Non-performing assets decreased $0.9 million, or 0.5%, to $197.5 million as of June 30, 2025, from $198.4 million as of March 31, 2025 and increased $22.6 million, or 12.9%, from $174.9 million as of June 30, 2024. Net charge-offs decreased $3.2 million, or 35.6%, to $5.8 million, or an annualized 0.14% of average loans outstanding, as of June 30, 2025, from $9.0 million, or an annualized 0.21% of average loans outstanding, as of March 31, 2025, and decreased $7.7 million, or 57.0%, from $13.5 million, or an annualized 0.30% of average loans outstanding, as of June 30, 2024. Classified loans decreased $24.4 million to $458.1 million as of June 30, 2025, compared to $482.5 million as of March 31, 2025, and increased $2.8 million compared to $455.3 million as of June 30, 2024. Criticized loans increased $176.9 million to $1,203.0 million as of June 30, 2025, compared to $1,026.1 million as of March 31, 2025, driven primarily by downgrades in the commercial real estate loan portfolio, and increased $585.0 million, compared to $618.0 million as of June 30, 2024. Total deposits decreased $102.2 million at June 30, 2025 from March 31, 2025, with noninterest bearing deposits decreasing by $11.2 million and interest bearing deposits decreasing $91.0 million. Total deposits decreased $240.1 million, or 1.0% from June 30, 2024. Completed the outsourcing of our consumer credit card portfolio resulting in the sale of $74.2 million of consumer credit card loans and recognition of a $4.3 million gain, net of the related credit card rewards liability. Capital ratios continued to improve during the second quarter of 2025, with our common equity tier 1 capital ratio increasing 90 basis points to 13.43%, compared to the first quarter of 2025, primarily as a result of lower risk-weighted assets. 'Our net interest margin continued to improve as expected, and we are prudently managing expenses while focusing our efforts on organic growth. Our liquidity and capital levels are strong, providing us a solid foundation to grow and improve profitability through relationship banking. This quarter, our results reflect a series of actions that position the bank for future success, including the outsourcing of our consumer credit card product,' said James A. Reuter, President and Chief Executive Officer of First Interstate BancSystem, Inc. 'We are pleased with the stability in non-performing assets, net charge-offs, and improvement in classified asset levels. The increase in criticized assets is due mostly to slower lease-up in the multifamily portfolio and reflects our proactive approach to credit risk management.' DIVIDEND DECLARATION On July 28, 2025, the Company's board of directors declared a dividend of $0.47 per common share, payable on August 21, 2025, to common stockholders of record as of August 11, 2025. The dividend equates to a 7.0% annualized yield based on the $26.95 per share average closing price of the Company's common stock as reported on NASDAQ during the second quarter of 2025. NET INTEREST INCOME Net interest income increased $2.2 million, or 1.1%, to $207.2 million during the second quarter of 2025, compared to net interest income of $205.0 million during the first quarter of 2025, primarily due to lower interest expense on other borrowed funds resulting from a decrease in average other borrowed funds balances, partially offset by lower interest income on loans and investment securities resulting from decreases in average balances. Net interest income increased $5.5 million, or 2.7%, during the second quarter of 2025 compared to the second quarter of 2024, primarily due to a decrease in interest expense resulting from decreased rates on other borrowed funds along with a decrease in average other borrowed funds balances, partially offset by lower interest income on investment securities as a result of a decrease in average rates and average investment security balances and as a result of a decrease in average loan balances. Interest accretion attributable to the fair value of acquired loans contributed to net interest income during the second quarter of 2025, the first quarter of 2025, and the second quarter of 2024, in the amounts of $4.2 million, $4.7 million, and $5.1 million, respectively. The net interest margin ratio was 3.30% for the second quarter of 2025, compared to 3.19% during the first quarter of 2025, and 2.97% during the second quarter of 2024. The net FTE interest margin ratio 1 was 3.32% for the second quarter of 2025, compared to 3.22% during the first quarter of 2025, and 3.00% during the second quarter of 2024. Excluding interest accretion from the fair value of acquired loans the adjusted net FTE interest margin ratio 1, was 3.26%, an increase of 12 basis points from the prior quarter, primarily driven by lower interest expense resulting from decreased borrowings. Excluding interest accretion from the fair value of acquired loans, on a year-over-year basis, the adjusted net FTE interest margin ratio increased 34 basis points, primarily as a result of lower interest expense resulting from decreased rates on borrowings, decreased other borrowed funds balances, and a favorable change in the mix of earning assets. PROVISION FOR CREDIT LOSSES During the second quarter of 2025, the Company recorded a reduction of provision for credit losses of $0.3 million. This compares to a provision for credit losses of $20.0 million and $9.0 million during the first quarter of 2025 and during the second quarter of 2024, respectively. For the second quarter of 2025, net charge-offs were $5.8 million, or an annualized 0.14% of average loans outstanding, compared to net charge-offs of $9.0 million, or an annualized 0.21% of average loans outstanding, for the first quarter of 2025 and net charge-offs of $13.5 million, or an annualized 0.30% of average loans outstanding, for the second quarter of 2024. Net loan charge-offs in the second quarter of 2025 were composed of charge-offs of $13.0 million, which was offset by recoveries of $7.2 million. Net loan charge-offs in the first quarter of 2025 were composed of charge-offs of $10.8 million, which was offset by recoveries of $1.8 million. Net loan charge-offs in the second quarter of 2024 were composed of charge-offs of $16.3 million, which was offset by recoveries of $2.8 million. The Company's allowance for credit losses as a percentage of period-end loans held for investment was 1.28% at June 30, 2025, compared to 1.24% at March 31, 2025 and 1.28% at June 30, 2024. Coverage of non-performing loans decreased to 108.0% at June 30, 2025, compared to 110.5% at March 31, 2025 and 138.4% at June 30, 2024. NON-INTEREST INCOME For the Quarter Ended Jun 30, 2025 Mar 31, 2025 $ Change % Change Jun 30, 2024 $ Change % Change (Dollars in millions) Payment services revenues $ 17.8 $ 17.1 $ 0.7 4.1 % $ 18.6 $ (0.8 ) (4.3 )% Mortgage banking revenues 1.8 1.4 0.4 28.6 1.7 0.1 5.9 Wealth management revenues 9.7 9.8 (0.1 ) (1.0 ) 9.4 0.3 3.2 Service charges on deposit accounts 6.9 6.6 0.3 4.5 6.4 0.5 7.8 Other service charges, commissions, and fees 2.1 2.3 (0.2 ) (8.7 ) 2.1 — — Other income 2.8 4.8 (2.0 ) (41.7 ) 4.4 (1.6 ) (36.4 ) Total non-interest income $ 41.1 $ 42.0 $ (0.9 ) (2.1 )% $ 42.6 $ (1.5 ) (3.5 )% Expand Non-interest income was $41.1 million for the second quarter of 2025, decreasing $0.9 million compared to the first quarter of 2025 and $1.5 million compared to the second quarter of 2024. The decreases were primarily due to a decrease in other income which included a $7.3 million valuation allowance for loans transferred from loans held for investment to loans held-for-sale related to the pending sale of the Arizona and Kansas branches, partially offset by a $4.3 million gain, net of the related credit card rewards liability for the sale of our consumer credit card loan portfolio and an increase in life insurance proceeds in the second quarter of 2025. NON-INTEREST EXPENSE For the Quarter Ended Jun 30, 2025 Mar 31, 2025 $ Change % Change Jun 30, 2024 $ Change % Change (Dollars in millions) Salaries and wages $ 65.0 $ 68.6 $ (3.6 ) (5.2 )% $ 66.3 $ (1.3 ) (2.0 )% Employee benefits 17.9 20.0 (2.1 ) (10.5 ) 16.9 1.0 5.9 Occupancy and equipment 18.6 18.7 (0.1 ) — 16.9 1.7 10.1 Other intangible amortization 3.4 3.4 — — 3.7 (0.3 ) (8.1 ) Other expenses 50.2 49.4 0.8 1.6 51.1 (0.9 ) (1.8 ) Other real estate owned expense — 0.5 (0.5 ) (100.0 ) 2.0 (2.0 ) (100.0 ) Total noninterest expense $ 155.1 $ 160.6 $ (5.5 ) (3.4 )% $ 156.9 $ (1.8 ) (1.1 )% Expand The Company's non-interest expense was $155.1 million for the second quarter of 2025, a decrease of $5.5 million from the first quarter of 2025 and $1.8 million from the second quarter of 2024. Salary and wages expense decreased $3.6 million and $1.3 million during the second quarter of 2025 compared to the first quarter of 2025 and the second quarter of 2024, respectively. The decrease when compared to the first quarter of 2025 was primarily due to lower severance and short-term incentive accruals, which were partially offset by higher salaries. The decrease when compared to the second quarter of 2024 was primarily due to lower short-term incentive accruals, which were partially offset by higher salaries and deferred loan costs. Employee benefit expenses decreased $2.1 million to $17.9 million during the second quarter of 2025, compared to $20.0 million during the first quarter of 2025, primarily due to lower payroll taxes and lower long-term incentives which were partially offset by higher health insurance costs. Employee benefit expenses increased $1.0 million from $16.9 million during the second quarter of 2024, primarily due to higher health insurance costs. Occupancy and equipment expenses decreased $0.1 million to $18.6 million during the second quarter of 2025, compared to $18.7 million during the first quarter of 2025. Occupancy and equipment expenses increased $1.7 million, or 10.1%, during the second quarter of 2025 from $16.9 million during the second quarter of 2024, primarily due to an increase in maintenance and repairs, snow removal, and janitorial costs. BALANCE SHEET Total assets decreased $713.4 million, or 2.5%, to $27,566.4 million as of June 30, 2025, from $28,279.8 million as of March 31, 2025 and decreased $2,723.1 million, or 9.0%, from $30,289.5 million as of June 30, 2024, primarily due to decreases in investment securities and loans, the funds from which were used to pay down debt, fund decreases in deposits, and securities sold under repurchase agreements. Investment securities decreased $191.6 million, or 2.6%, to $7,312.2 million as of June 30, 2025, from $7,503.8 million as of March 31, 2025, primarily resulting from normal pay-downs and maturities and called securities, partially offset by a $44.7 million increase in fair market values and $25.7 million in purchases of investment securities during the period. Investment securities decreased $1,089.4 million, or 13.0%, from $8,401.6 million as of June 30, 2024, primarily resulting from called securities and normal pay-downs and maturities, partially offset by a $187.9 million increase in fair market values and $25.7 million in purchases of investment securities during the period. The following table presents the composition and comparison of loans held for investment as of the quarters-ended: The decline in loans was impacted by $73.1 million of continued amortization of the indirect portfolio for which the Company stopped originating loans during the first quarter of 2025. Additionally, $74.2 million of consumer credit card loans were sold and $338.3 million of loans held for investment related to the pending sale of the Arizona and Kansas branches were transferred to loans held-for-sale and the Company experienced larger loan payoffs during the second quarter of 2025. The ratio of loans held for investment to deposits was 72.3%, as of June 30, 2025, compared to 76.4% as of March 31, 2025 and 79.7% as of June 30, 2024. Total deposits decreased $102.2 million to $22,630.6 million as of June 30, 2025, from $22,732.8 million as of March 31, 2025, primarily due to a decrease of $86.8 million of interest bearing savings deposits. Total deposits decreased $240.1 million, or 1.0%, from $22,870.7 million as of June 30, 2024, with decreases in noninterest bearing and time, other interest bearing deposits, which were more than offset by increases in demand, savings, and time, $250 and over interest bearing deposits. Securities sold under repurchase agreements decreased $18.7 million, or 3.5%, to $509.3 million as of June 30, 2025, from $528.0 million as of March 31, 2025, and decreased $232.5 million, or 31.3%, from $741.8 million as of June 30, 2024, resulting from normal fluctuations in the liquidity needs of the Company's clients. Long-term debt increased $121.8 million to $252.0 million as of June 30, 2025, from $130.2 million as of March 31, 2025, primarily due to the Company's issuance of $125.0 million of subordinated notes in the second quarter of 2025. Long-term debt decreased $131.4 million, from $383.4 million as of June 30, 2024, primarily from the recategorization of $250.0 million of 18-month Federal Home Loan Bank borrowings with remaining maturities of less than one year to other borrowed funds during the third quarter of 2024, partially offset by the issuance of $125.0 million of subordinated notes in the second quarter of 2025. Other borrowed funds is composed of variable-rate, overnight and fixed-rate borrowings with remaining contractual tenors of up to one year through the Federal Home Loan Bank. Other borrowed funds decreased $710.0 million, or 74.0%, to $250.0 million as of June 30, 2025, from $960.0 million as of March 31, 2025. The decrease was funded by cash flows from paydowns and maturities of investment securities and loans. Other borrowed funds decreased $2,180.0 million from June 30, 2024. The decrease was funded by cash flows from paydowns and maturities of investment securities, which were utilized for the pay-off of the $1.0 billion Bank Term Funding Program in December 2024 and Federal Home Loan Bank borrowings. The Company is considered to be 'well-capitalized' as of June 30, 2025, having exceeded all regulatory capital adequacy requirements. During the second quarter of 2025, the Company paid regular common stock dividends of approximately $49.1 million, or $0.47 per share. CREDIT QUALITY As of June 30, 2025, non-performing assets decreased $0.9 million, or 0.5%, to $197.5 million, compared to $198.4 million as of March 31, 2025. Classified loans decreased $24.4 million to $458.1 million as of June 30, 2025, compared to $482.5 million as of March 31, 2025, and increased $2.8 million compared to $455.3 million as of June 30, 2024. Criticized loans increased $176.9 million, or 17.2%, to $1,203.0 million as of June 30, 2025, from $1,026.1 million as of March 31, 2025, primarily as a result of $200.3 million of commercial real estate loan downgrades, which were partially offset by commercial real estate upgrades, paydowns, and payoffs of $60.6 million. NON-GAAP FINANCIAL MEASURES In addition to results presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, this press release contains the following non-GAAP financial measures that management uses to evaluate our performance relative to our capital adequacy standards: (i) tangible common stockholders' equity; (ii) tangible assets; (iii) tangible book value per common share; (iv) tangible common stockholders' equity to tangible assets; (v) average tangible common stockholders' equity; (vi) return on average tangible common stockholders' equity; (vii) net FTE interest income; (viii) net FTE interest margin ratio; (ix) adjusted net FTE interest income; and (x) adjusted net FTE interest margin ratio. Tangible common stockholders' equity is calculated as total common stockholders' equity less goodwill and other intangible assets (excluding mortgage servicing rights). Tangible assets are calculated as total assets less goodwill and other intangible assets (excluding mortgage servicing rights). Tangible book value per common share is calculated as tangible common stockholders' equity divided by common shares outstanding. Tangible common stockholders' equity to tangible assets is calculated as tangible common stockholders' equity divided by tangible assets. Average tangible common stockholders' equity is calculated as average total stockholders' equity less average goodwill and other intangible assets (excluding mortgage servicing rights). Return on average tangible common stockholders' equity is calculated as annualized net income available to common shareholders divided by average tangible common stockholders' equity. Net FTE interest income is calculated as net interest income, adjusted to include its FTE interest income. Net FTE interest margin ratio is calculated as net FTE interest income divided by average interest earning assets. Adjusted net FTE interest income is calculated as net FTE interest income less purchase accounting interest accretion on acquired loans. Adjusted net FTE interest margin ratio is calculated as annualized adjusted net FTE interest income divided by average interest earning assets. These non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies because other companies may not calculate these non-GAAP measures in the same manner. They also should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. The Company adjusts the most directly comparable capital adequacy GAAP financial measures to the non-GAAP financial measures described in subclauses (i) through (vi) above to exclude goodwill and other intangible assets (except mortgage servicing rights), adjusts its GAAP net interest income to include fully taxable equivalent adjustments and further adjusts its net interest income on a fully taxable equivalent basis to exclude purchase accounting interest accretion. Management believes these non-GAAP financial measures, which are intended to complement the capital ratios defined by banking regulators and to present on a consistent basis our and our acquired companies' organic continuing operations without regard to acquisition costs and other adjustments that we consider to be unpredictable and dependent on a significant number of factors that are outside our control, are useful to investors in evaluating the Company's performance because, as a general matter, they either do not represent an actual cash expense and are inconsistent in amount and frequency depending upon the timing and size of our acquisitions (including the size, complexity and/or volume of past acquisitions, which may drive the magnitude of acquisition related costs, but may not be indicative of the size, complexity and/or volume of future acquisitions or related costs), or they cannot be anticipated or estimated in a particular period (in particular as it relates to unexpected recovery amounts). This impacts the ratios that are important to analysts and allows investors to compare certain aspects of the Company's capitalization to other companies. See the Non-GAAP Financial Measures table included herein and the textual discussion for a reconciliation of the above-described non-GAAP financial measures to their most directly comparable GAAP financial measures. Cautionary Note Regarding Forward-Looking Statements and Factors that Could Affect Future Results This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. Any statements about our plans, objectives, expectations, strategies, beliefs, or future performance or events constitute forward-looking statements. Such statements are identified by words or phrases such as 'believes,' 'expects,' 'anticipates,' 'plans,' 'trends,' 'objectives,' 'continues' or similar expressions, or future or conditional verbs such as 'will,' 'would,' 'should,' 'could,' 'might,' 'may,' or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other important factors that could cause actual results to differ materially from any results, performance or events expressed or implied by such forward-looking statements. Furthermore, the following factors, among others, may cause actual results to differ materially from current expectations in the forward-looking statements, including those set forth in this press release: new or changes in existing governmental regulations or in the way such regulations are interpreted or enforced; negative developments in the banking industry and increased regulatory scrutiny; tax legislative initiatives or assessments; more stringent capital requirements, to the extent they may become applicable to us; changes in accounting standards; any failure to comply with applicable laws and regulations, including, but not limited to, the Community Reinvestment Act and fair lending laws, the USA PATRIOT ACT of 2001, the Office of Foreign Asset Control guidelines and requirements, the Bank Secrecy Act, and the related Financial Crimes Enforcement Network and Federal Financial Institutions Examination Council Guidelines and regulations; federal deposit insurance increases; lending risks and risks associated with loan sector concentrations; a decline in economic conditions that could reduce demand for our products and services and negatively impact the credit quality of loans; loan credit losses exceeding estimates; effects on the U.S. economy resulting from the implementation of policies by and geopolitical uncertainty from the new presidential administration, including tax regulations and changes to United States trade policies, including the imposition of tariffs and retaliatory tariffs; the soundness of other financial institutions; the ability to meet cash flow needs and availability of financing sources for working capital and other needs; a loss of deposits or a change in product mix that increases the Company's funding costs; inability to access funding or to monetize liquid assets; changes in interest rates; interest rate effect on the value of our investment securities; cybersecurity risks, including denial-of-service attacks, network intrusions, business e-mail compromise, and other malicious behavior that could result in the disclosure of confidential information; privacy, information security, and data protection laws, rules, and regulations that affect or limit how we collect and use personal information or otherwise have an adverse effect on us; the potential impairment of our goodwill and other intangible assets; our reliance on other companies that provide key components of our business infrastructure; events that may tarnish our reputation; mainstream and social media contagion; the loss of the services of key members of our management team and directors; our ability to attract and retain qualified employees to operate our business; costs associated with repossessed properties, including potential environmental remediation; the effectiveness of our operational processes, policies and procedures, and internal control over financial reporting; our ability to implement technology-facilitated products and services or be successful in marketing these products and services to our clients; the development and use of artificial intelligence; risks related to acquisitions, mergers, strategic partnerships, divestitures, and other transactions; competition from new or existing financial institutions and non-banks; investing in technology; incurrence of significant costs related to mergers and related integration activities; the volatility in the price and trading volume of our common stock; 'anti-takeover' provisions in our certificate of incorporation and regulations, which may make it more difficult for a third party to acquire control of us even in circumstances that could be deemed beneficial to stockholders; changes in our dividend policy or our ability to pay dividends; our common stock not being an insured deposit; the potential dilutive effect of future equity issuances; the subordination of our common stock to our existing and future indebtedness; the effect of global conditions, earthquakes, volcanoes, tsunamis, floods, fires, drought, and other natural catastrophic events; and the impact of climate change and environmental sustainability matters. These factors are not necessarily all the factors that could cause our actual results, performance, or achievements to differ materially from those expressed in or implied by any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and included and described in more detail in our periodic reports filed with the Securities and Exchange Commission, or SEC, under the Securities Exchange Act of 1934, as amended, under the caption 'Risk Factors.' Interested parties are urged to read in their entirety such risk factors prior to making any investment decision with respect to the Company. Forward-looking statements speak only as of the date they are made, and we do not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Second Quarter 2025 Conference Call for Investors First Interstate BancSystem, Inc. will host a conference call to discuss the results for the second quarter of 2025 at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time) on Wednesday, July 30, 2025. The conference call will be accessible by telephone and through the Internet. Participants may join the call by dialing 1-800-549-8228; the access code is 98659. To participate via the Internet, visit The call will be recorded and made available for replay on July 30, 2025, after 1:00 p.m. Eastern Time (11:00 a.m. Mountain Time), through August 29, 2025, prior to 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time), by dialing 1-888-660-6264; the access code is 98659. The call will also be archived on our website, for one year. About First Interstate BancSystem, Inc. First Interstate BancSystem, Inc. is a financial and bank holding company focused on community banking. Incorporated in 1971 and headquartered in Billings, Montana, the Company operates banking offices, including detached drive-up facilities, in communities across Arizona, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oregon, South Dakota, Washington, and Wyoming, in addition to offering online and mobile banking services. Through our bank subsidiary, First Interstate Bank, the Company delivers a comprehensive range of banking products and services to individuals, businesses, municipalities, and others throughout the Company's market areas. FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) % Change (In millions, except % and per share data) Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 2Q25 vs 1Q25 2Q25 vs 2Q24 Assets: Cash and due from banks $ 436.6 $ 390.4 $ 378.0 $ 438.9 $ 390.2 11.8 % 11.9 % Interest bearing deposits in banks 653.5 480.9 518.5 259.6 568.2 35.9 15.0 Federal funds sold 0.1 0.1 0.1 0.1 0.1 — — Cash and cash equivalents 1,090.2 871.4 896.6 698.6 958.5 25.1 13.7 Investment securities, net 7,312.2 7,503.8 7,744.6 8,275.6 8,401.6 (2.6 ) (13.0 ) Investment in Federal Home Loan Bank and Federal Reserve Bank stock 118.1 150.1 177.4 155.5 182.3 (21.3 ) (35.2 ) Loans held for sale, at fair value 335.2 0.4 0.9 20.9 22.3 NM NM Loans held for investment 16,353.4 17,377.3 17,844.9 18,027.1 18,235.0 (5.9 ) (10.3 ) Allowance for credit losses (209.6 ) (215.3 ) (204.1 ) (225.4 ) (232.8 ) (2.6 ) (10.0 ) Net loans held for investment 16,143.8 17,162.0 17,640.8 17,801.7 18,002.2 (5.9 ) (10.3 ) Goodwill and intangible assets (excluding mortgage servicing rights) 1,188.9 1,192.4 1,195.7 1,199.3 1,202.9 (0.3 ) (1.2 ) Company owned life insurance 516.7 514.2 513.0 511.0 507.6 0.5 1.8 Premises and equipment 413.0 428.9 427.2 432.7 436.5 (3.7 ) (5.4 ) Other real estate owned 3.4 3.5 4.3 4.4 6.7 (2.9 ) (49.3 ) Mortgage servicing rights 24.4 24.9 25.7 26.3 27.0 (2.0 ) (9.6 ) Other assets 420.5 428.2 511.2 469.5 541.9 (1.8 ) (22.4 ) Total assets $ 27,566.4 $ 28,279.8 $ 29,137.4 $ 29,595.5 $ 30,289.5 (2.5 )% (9.0 )% Liabilities and stockholders' equity: Deposits $ 22,630.6 $ 22,732.8 $ 23,015.6 $ 22,864.1 $ 22,870.7 (0.4 )% (1.0 )% Securities sold under repurchase agreements 509.3 528.0 523.9 557.2 741.8 (3.5 ) (31.3 ) Other borrowed funds 250.0 960.0 1,567.5 2,080.0 2,430.0 (74.0 ) (89.7 ) Long-term debt 252.0 130.2 132.2 137.3 383.4 93.5 (34.3 ) Subordinated debentures held by subsidiary trusts 163.1 163.1 163.1 163.1 163.1 — — Other liabilities 339.6 404.4 431.1 428.0 475.2 (16.0 ) (28.5 ) Total liabilities 24,144.6 24,918.5 25,833.4 26,229.7 27,064.2 (3.1 ) (10.8 ) Stockholders' equity: Common stock 2,463.5 2,460.2 2,459.5 2,457.4 2,453.9 0.1 0.4 Retained earnings 1,191.2 1,168.6 1,166.4 1,163.3 1,156.9 1.9 3.0 Accumulated other comprehensive loss (232.9 ) (267.5 ) (321.9 ) (254.9 ) (385.5 ) (12.9 ) (39.6 ) Total stockholders' equity 3,421.8 3,361.3 3,304.0 3,365.8 3,225.3 1.8 6.1 Total liabilities and stockholders' equity $ 27,566.4 $ 28,279.8 $ 29,137.4 $ 29,595.5 $ 30,289.5 (2.5 )% (9.0 )% Common shares outstanding at period end 104,874 104,910 104,586 104,530 104,561 — % 0.3 % Book value per common share at period end $ 32.63 $ 32.04 $ 31.59 $ 32.20 $ 30.85 1.8 5.8 Tangible book value per common share at period end** 21.29 20.67 20.16 20.73 19.34 3.0 10.1 **Non-GAAP financial measure - see Non-GAAP Financial Measures included herein for a reconciliation of book value per common share (GAAP) at period end to tangible book value per common share (non-GAAP) at period end. NM - not meaningful Expand FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Selected Ratios - Annualized (Unaudited) At or for the Quarter ended: Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Annualized Financial Ratios (GAAP) Return on average assets 1.03 % 0.71 % 0.70 % 0.74 % 0.80 % Return on average common stockholders' equity 8.46 6.07 6.22 6.68 7.55 Yield on average earning assets 4.76 4.75 4.86 4.83 4.80 Cost of average interest bearing liabilities 1.95 2.05 2.23 2.41 2.39 Interest rate spread 2.81 2.70 2.63 2.42 2.41 Efficiency ratio 61.10 63.64 60.20 61.85 62.71 Loans held for investment to deposit ratio 72.26 76.44 77.53 78.84 79.73 Annualized Financial Ratios - Operating** (Non-GAAP) Net FTE interest margin ratio 3.32 % 3.22 % 3.20 % 3.04 % 3.00 % Tangible book value per common share $ 21.29 $ 20.67 $ 20.16 $ 20.73 $ 19.34 Tangible common stockholders' equity to tangible assets 8.47 % 8.01 % 7.55 % 7.63 % 6.95 % Return on average tangible common stockholders' equity 13.01 9.42 9.71 10.48 12.12 Consolidated Capital Ratios Total risk-based capital to total risk-weighted assets 16.49 % * 14.93 % 14.38 % 14.11 % 13.80 % Tier 1 risk-based capital to total risk-weighted assets 13.43 * 12.53 12.16 11.83 11.53 Tier 1 common capital to total risk-weighted assets 13.43 * 12.53 12.16 11.83 11.53 Leverage Ratio 9.37 * 9.06 8.71 8.57 8.44 *Preliminary estimate - may be subject to change. The regulatory capital ratios presented include the assumption of the transitional method as a result of legislation by the United States Congress to provide relief for the economy and financial institutions in the United States from the COVID‑19 pandemic. The referenced relief ended on December 31, 2024, which allowed a total five-year phase-in of the impact of CECL on capital. **Non-GAAP financial measures - see Non-GAAP Financial Measures included herein for a reconciliation of net interest margin to net FTE interest margin, book value per common share to tangible book value per common share, return on average common stockholders' equity (GAAP) to return on average tangible common stockholders' equity, and tangible common stockholders' equity to tangible assets (non-GAAP). Expand FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Average Balance Sheets (Unaudited) Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 (In millions, except %) Average Balance Interest (2) Average Rate Average Balance Interest (2) Average Rate Average Balance Interest (2) Average Rate Interest earning assets: Loans (1) $ 17,053.8 $ 240.2 5.65 % $ 17,668.6 $ 243.5 5.59 % $ 18,253.9 $ 254.4 5.61 % Investment securities Taxable 7,254.3 49.6 2.74 7,464.3 51.3 2.79 8,311.6 62.3 3.01 Tax-exempt 181.7 0.8 1.77 182.6 0.9 2.00 187.8 0.8 1.71 Investment in FHLB and FRB stock 139.3 2.1 6.05 175.9 2.9 6.69 185.5 3.3 7.16 Interest bearing deposits in banks 550.9 6.2 4.51 567.5 6.3 4.50 348.0 4.9 5.66 Federal funds sold 0.1 — — 0.1 — — 0.1 — — Total interest earning assets $ 25,180.1 $ 298.9 4.76 % $ 26,059.0 $ 304.9 4.75 % $ 27,286.9 $ 325.7 4.80 % Noninterest earning assets 2,718.3 2,759.9 2,853.7 Total assets $ 27,898.4 $ 28,818.9 $ 30,140.6 Interest bearing liabilities: Demand deposits $ 6,402.9 $ 15.0 0.94 % $ 6,412.7 $ 14.4 0.91 % $ 6,142.9 $ 13.9 0.91 % Savings deposits 7,801.3 36.6 1.88 7,800.3 35.7 1.86 7,760.3 40.8 2.11 Time deposits 2,806.2 23.7 3.39 2,863.0 25.0 3.54 2,863.4 26.2 3.68 Repurchase agreements 517.4 1.1 0.85 533.0 1.2 0.91 775.5 1.9 0.99 Other borrowed funds 720.4 8.3 4.62 1,533.5 17.5 4.63 2,501.9 31.8 5.11 Long-term debt 158.4 2.7 6.84 132.0 1.7 5.22 377.2 4.4 4.69 Subordinated debentures held by subsidiary trusts 163.1 2.9 7.13 163.1 2.8 6.96 163.1 3.3 8.14 Total interest bearing liabilities $ 18,569.7 $ 90.3 1.95 % $ 19,437.6 $ 98.3 2.05 % $ 20,584.3 $ 122.3 2.39 % Noninterest bearing deposits 5,561.3 5,608.2 5,868.7 Other noninterest bearing liabilities 366.3 418.0 492.3 Stockholders' equity 3,401.1 3,355.1 3,195.3 Total liabilities and stockholders' equity $ 27,898.4 $ 28,818.9 $ 30,140.6 Net FTE interest income (non-GAAP) (3) $ 208.6 $ 206.6 $ 203.4 Less FTE adjustments (2) (1.4 ) (1.6 ) (1.7 ) Net interest income from consolidated statements of income $ 207.2 $ 205.0 $ 201.7 Interest rate spread 2.81 % 2.70 % 2.41 % Net interest margin 3.30 3.19 2.97 Net FTE interest margin (non-GAAP) (3) 3.32 3.22 3.00 Cost of funds, including noninterest bearing demand deposits (4) 1.50 1.59 1.86 (1) Average loan balances include loans held for sale and loans held for investment, net of deferred fees and costs, which include non-accrual loans. Interest income includes amortization of deferred loan fees net of deferred loan costs, which is not material. (2) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax exempt loans and securities to an FTE basis utilizing a 21% tax rate. (3) Non-GAAP financial measure - see Non-GAAP Financial Measures included herein for a reconciliation to GAAP measures. (4) Calculated by dividing total annualized interest on interest bearing liabilities by the sum of total interest bearing liabilities plus noninterest bearing deposits. Expand FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Non-GAAP Financial Measures (Unaudited) As of or For the Quarter Ended (In millions, except % and per share data) Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Total common stockholders' equity (GAAP) (A) $ 3,421.8 $ 3,361.3 $ 3,304.0 $ 3,365.8 $ 3,225.3 Less goodwill and other intangible assets (excluding mortgage servicing rights) 1,188.9 1,192.4 1,195.7 1,199.3 1,202.9 Tangible common stockholders' equity (Non-GAAP) (B) $ 2,232.9 $ 2,168.9 $ 2,108.3 $ 2,166.5 $ 2,022.4 Total assets (GAAP) $ 27,566.4 $ 28,279.8 $ 29,137.4 $ 29,595.5 $ 30,289.5 Less goodwill and other intangible assets (excluding mortgage servicing rights) 1,188.9 1,192.4 1,195.7 1,199.3 1,202.9 Tangible assets (Non-GAAP) (C) $ 26,377.5 $ 27,087.4 $ 27,941.7 $ 28,396.2 $ 29,086.6 Average Balances: Total common stockholders' equity (GAAP) (D) $ 3,401.1 $ 3,355.1 $ 3,332.1 $ 3,307.1 $ 3,195.3 Less goodwill and other intangible assets (excluding mortgage servicing rights) 1,190.5 1,193.9 1,197.4 1,201.0 1,204.6 Average tangible common stockholders' equity (Non-GAAP) (E) $ 2,210.6 $ 2,161.2 $ 2,134.7 $ 2,106.1 $ 1,990.7 Net interest income (F) $ 207.2 $ 205.0 $ 214.3 $ 205.5 $ 201.7 FTE interest income 1.4 1.6 1.6 1.6 1.7 Net FTE interest income (Non-GAAP) (G) 208.6 206.6 215.9 207.1 203.4 Less purchase accounting accretion 4.2 4.7 8.6 4.4 5.1 Adjusted net FTE interest income (Non-GAAP) (H) $ 204.4 $ 201.9 $ 207.3 $ 202.7 $ 198.3 Average interest earning assets (I) $ 25,180.1 $ 26,059.0 $ 26,811.6 $ 27,133.3 $ 27,286.9 Total quarterly average assets (J) 27,898.4 28,818.9 29,618.9 29,946.9 30,140.6 Annualized net income available to common shareholders (K) 287.6 203.6 207.3 220.8 241.3 Common shares outstanding (L) 104,874 104,910 104,586 104,530 104,561 Return on average assets (GAAP) (K) / (J) 1.03 % 0.71 % 0.70 % 0.74 % 0.80 % Return on average common stockholders' equity (GAAP) (K) / (D) 8.46 6.07 6.22 6.68 7.55 Average common stockholders' equity to average assets (GAAP) (D) / (J) 12.19 11.64 11.25 11.04 10.60 Book value per common share (GAAP) (A) / (L) $ 32.63 $ 32.04 $ 31.59 $ 32.20 $ 30.85 Tangible book value per common share (Non-GAAP) (B) / (L) 21.29 20.67 20.16 20.73 19.34 Tangible common stockholders' equity to tangible assets (Non-GAAP) (B) / (C) 8.47 % 8.01 % 7.55 % 7.63 % 6.95 % Return on average tangible common stockholders' equity (Non-GAAP) (K) / (E) 13.01 9.42 9.71 10.48 12.12 Net interest margin (GAAP) (F*) / (I) 3.30 3.19 3.18 3.01 2.97 Net FTE interest margin (Non-GAAP) (G*) / (I) 3.32 3.22 3.20 3.04 3.00 (H*) / (I) 3.26 3.14 3.08 2.97 2.92 *Annualized Expand (FIBK-ER)
Yahoo
28-07-2025
- Yahoo
Earnings To Watch: First Interstate BancSystem (FIBK) Reports Q2 Results Tomorrow
Regional banking company First Interstate BancSystem (NASDAQ:FIBK) will be announcing earnings results this Tuesday after market hours. Here's what you need to know. First Interstate BancSystem missed analysts' revenue expectations by 2.3% last quarter, reporting revenues of $247 million, up 2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts' net interest income estimates and a significant miss of analysts' EPS estimates. Is First Interstate BancSystem a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting First Interstate BancSystem's revenue to grow 3.4% year on year to $252.7 million, a reversal from the 6.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.58 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. First Interstate BancSystem has missed Wall Street's revenue estimates four times over the last two years. Looking at First Interstate BancSystem's peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Seacoast Banking delivered year-on-year revenue growth of 19.6%, beating analysts' expectations by 5%, and Atlantic Union Bankshares reported revenues up 86.2%, topping estimates by 12.5%. Seacoast Banking's stock price was unchanged after the resultswhile Atlantic Union Bankshares was down 1.9%. Read our full analysis of Seacoast Banking's results here and Atlantic Union Bankshares's results here. There has been positive sentiment among investors in the regional banks segment, with share prices up 4.3% on average over the last month. First Interstate BancSystem is up 5.8% during the same time and is heading into earnings with an average analyst price target of $31.88 (compared to the current share price of $30.50). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.