First Interstate BancSystem, Inc. reported net income of $50.2 million, or $0.49 per diluted share, for the first quarter of 2025. This compares to $52.1 million, or $0.50 per diluted share, in the fourth quarter of 2024. Net interest income decreased by $9.3 million, or 4.3%, to $205.0 million quarter-over-quarter, primarily due to lower interest income on loans and investment securities.
Despite the decrease in net interest income, the net interest margin ratio slightly increased to 3.19% from 3.18% in the prior quarter. The company discontinued accepting applications to originate indirect loans during the first quarter of 2025, impacting consumer loan balances. Total deposits decreased by $282.8 million to $22,732.8 million.
Credit quality metrics showed an increase in criticized loans by $252.8 million, or 32.7%, to $1,026.1 million, mainly from commercial real estate loan downgrades. Non-performing assets also increased by $52.8 million, or 36.3%, to $198.4 million. The provision for credit losses was $20.0 million, while net charge-offs were $9.0 million, or an annualized 0.21% of average loans. The board declared a dividend of $0.47 per common share, payable on May 22, 2025.
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