First Interstate BancSystem (NASDAQ:FIBK) reported second-quarter 2026 net income of $83.9 million, or $0.87 per diluted share, compared with $60.2 million, or $0.61 per diluted share, in the first quarter.
Results included a $19.5 million gain from a branch transaction completed during the quarter
Management said it continued to prioritize long-term profitability, deposit mix, credit quality and operating efficiency, even as elevated loan payoffs drove a larger-than-expected decline in reported loan balances. Margin expands as funding costs decline Net interest income rose 0.7% from the first quarter to $202.2 million, supported by net interest margin expansion and an additional accrual day. The increase was partly offset by lower interest-earning assets, including the impact of the branch sale completed in April.
Fully taxable equivalent net interest margin rose to 3.48%, from 3.43% in the first quarter and 3.32% a year earlier. The second quarter marked the company’s ninth consecutive quarter of margin expansion. Chief Financial Officer David Della Camera said average loan yields increased two basis points sequentially to 5.62%, while total deposit costs declined three basis points and total funding costs fell four basis points.