First Interstate BancSystem to redeem $100 million subordinated notes in August

Published 03/07/2025, 21:24
First Interstate BancSystem to redeem $100 million subordinated notes in August

First Interstate BancSystem, Inc. (NASDAQ:FIBK), a $3.2 billion market cap regional bank trading at $31.12 per share, announced Thursday that it has delivered a redemption notice for its outstanding 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030. The notes, which were originally issued on May 15, 2020, have an aggregate principal amount of $100 million.

According to the company’s statement based on a Securities and Exchange Commission filing, the redemption will take place on August 15, 2025. The notes will be redeemed in full at a price equal to 100% of the principal amount plus accrued and unpaid interest up to, but not including, the redemption date.

The payment of the redemption price will be made through the Depository Trust Company procedures, and holders are required to surrender their notes to receive payment. After August 15, interest on the notes will cease to accrue, and no notes will remain outstanding following the redemption unless the company defaults in payment.

First Interstate BancSystem, Inc. is incorporated in Delaware and is headquartered in Billings, Montana. The company’s common stock is listed on the NASDAQ under the symbol FIBK.

This information is based on a press release statement included in the company’s SEC filing.

In other recent news, First Interstate BancSystem reported disappointing first-quarter 2025 earnings, with earnings per share (EPS) of $0.49 missing analysts’ expectations of $0.55. Revenue also fell short, coming in at $247 million compared to the projected $253.5 million. Despite the earnings miss, Piper Sandler maintained its Overweight rating on First Interstate BancSystem, with a price target of $38.00, citing potential growth in net interest income and strategic initiatives under new CEO Jim Reuter. DA Davidson also reaffirmed its Buy rating, setting a price target of $32.00, and highlighted the bank’s focus on improving credit quality and profitability without pursuing large mergers. The bank announced the appointment of David P. Della Camera as the new CFO, succeeding Marcy D. Mutch, who will remain as an advisor. First Interstate BancSystem is also planning to sell 12 branches in Arizona and Kansas, which is expected to close by the fourth quarter. These developments reflect the bank’s strategic shift towards relationship banking and organic growth.

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