First Interstate BancSystem (FIBK) Misses Revenue but Beats EPS; Restructuring Drives Strategy

First Interstate BancSystem (NASDAQ:FIBK) reported Q4 2025 revenue of $250.2M, down 4.1% YoY and below estimates, but delivered non-GAAP EPS of $1.08 — 71.3% above consensus. Shares fell to $35.70 from $36.66 post-earnings as management cited ongoing branch divestitures and runoff of non-core loans as near-term drags. CEO James Reuter emphasized strategic refocusing on high-density markets like Colorado and Montana, while CFO David Della Camera tied future margin expansion to reinvestment of maturing assets at higher rates and new relationship banking initiatives. Loan growth is expected to decline in H1 2026 before modest H2 recovery. Analysts will monitor: (1) pace of branch consolidation, (2) effectiveness of flatter org structure in driving loan growth, and (3) NIM expansion via repricing. Credit quality and buyback activity remain key barometers of execution.