First Interstate BancSystem, Inc. Reports First Quarter Earnings
First Interstate BancSystem, Inc. (NASDAQ: FIBK) announced its Q1 2023 financial results, reporting a net income of $56.3 million ($0.54 per share), a decline from $85.8 million ($0.82 per share) in Q4 2022 and a recovery from a net loss of $33.4 million ($0.36 per share) in Q1 2022. Key metrics include a net interest margin of 3.36%, down 25 basis points from Q4 2022, and a decrease in net interest income by 7.5% to $238.9 million. Total loans held for investment rose by $146.5 million, reflecting strong growth in commercial loans. Despite facing a $23.4 million loss on investment securities, the company declared a dividend of $0.47 per share, equivalent to a 5.3% annual yield. The credit loss provision was $15.2 million, indicating management's cautious approach amid a fluctuating economic landscape.
- Net income recovery from a loss of $33.4 million in Q1 2022 to $56.3 million in Q1 2023.
- Increase in loans held for investment by $146.5 million in Q1 2023.
- Declared dividend of $0.47 per share, providing a 5.3% annual yield.
- Managing credit losses effectively with a provision of $15.2 million, less than the prior year's significant charge.
- Net interest income decreased by 7.5% to $238.9 million compared to Q4 2022.
- Net interest margin fell to 3.36%, down from 3.61% in Q4 2022.
- Recorded a substantial loss of $23.4 million on investment securities.
Earnings include pre-tax acquisition costs of
HIGHLIGHTS
-
Net income of
$56.3 million $0.54 $23.4 million $1.9 million $0.18 -
Net interest margin, on a fully taxable equivalent basis, decreased to
3.36% for the first quarter of 2023, a 25 basis point decrease from the fourth quarter of 2022. Excluding income related to purchase accounting accretion, the adjusted net interest margin1, on a fully taxable equivalent basis, decreased to3.29% for the first quarter of 2023, a 20 basis point decrease from the fourth quarter of 2022. -
Loans held for investment increased
$146.5 million 3.2% during the first quarter of 2023 compared to the fourth quarter of 2022. Commercial loans increased$145.4 million 20% , reflecting a continued focus on relationship lending. Total real estate loans increased$78.4 million 2.4% , as an increase in commercial real estate loans was partially offset by a decrease in construction loans. Loans held for investment to deposit ratio increased to75.7% , as ofMarch 31, 2023 , compared to72.2% as ofDecember 31, 2022 and60.3% as ofMarch 31, 2022 . -
Book value per common share was
$30.28 March 31, 2023 , compared to$29.43 December 31, 2022 , and$31.42 March 31, 2022 . Tangible book value per common share1 was$18.57 March 31, 2023 , compared to$17.69 December 31, 2022 and$19.78 March 31, 2022 , driven by an increase in retained earnings and changes in accumulated other comprehensive loss related to unrealized losses on available-for-sale securities.
“Throughout our more than 50-year history, First Interstate has prioritized prudent risk management with respect to all aspects of our operations, and as a result, we have continued to be a source of strength and stability for our clients during this challenging period for the banking industry,” said
“Our first quarter performance evidenced the strong position of the company as we navigate the current uncertain environment. We are well positioned to effectively manage through a wide range of economic scenarios, with strong levels of capital, ample liquidity, and a flexible balance sheet and therefore are not currently contemplating any changes to our strategic planning for the remainder of the year. While prudent risk management will continue to be our top priority, we believe this is a favorable environment for First Interstate to grow our client base, which will contribute to our continued long-term profitable growth and further increase the value of our franchise,” said
_______________________________________
1 Non-GAAP financial measure - see Non-GAAP Financial Measures included herein for a reconciliation to GAAP measures.
DIVIDEND DECLARATION
On
NET INTEREST INCOME
Net interest income decreased
-
Interest accretion attributable to the fair valuation of acquired loans from acquisitions contributed to net interest income during the first quarter of 2023, the fourth quarter of 2022, and the first quarter of 2022, in the amounts of
$5.2 million $8.4 million $7.6 million
The net interest margin ratio was
PROVISION FOR (REDUCTION OF) CREDIT LOSSES
During the first quarter of 2023, the Company recorded a provision for credit losses of
For the first quarter of 2023, the allowance for credit losses included net charge-offs of
The Company’s allowance for credit losses as a percentage of period-end loans held for investment increased to
NON-INTEREST INCOME
For the Quarter Ended |
|
|
|
|
$ Change |
% Change |
|
|
|
$ Change |
% Change |
|||||||||||
(Dollars in millions) |
|
|
|
|
||||||||||||||||||
Payment services revenues |
$ |
18.7 |
|
|
$ |
19.4 |
|
$ |
(0.7 |
) |
(3.6 |
)% |
|
$ |
14.8 |
|
|
$ |
3.9 |
|
26.4 |
% |
Mortgage banking revenues |
|
2.3 |
|
|
|
2.6 |
|
|
(0.3 |
) |
(11.5 |
) |
|
|
8.4 |
|
|
|
(6.1 |
) |
(72.6 |
) |
Wealth management revenues |
|
9.0 |
|
|
|
8.4 |
|
|
0.6 |
|
7.1 |
|
|
|
8.1 |
|
|
|
0.9 |
|
11.1 |
|
Service charges on deposit accounts |
|
5.2 |
|
|
|
4.9 |
|
|
0.3 |
|
6.1 |
|
|
|
7.7 |
|
|
|
(2.5 |
) |
(32.5 |
) |
Other service charges, commissions, and fees |
|
2.4 |
|
|
|
2.9 |
|
|
(0.5 |
) |
(17.2 |
) |
|
|
4.3 |
|
|
|
(1.9 |
) |
(44.2 |
) |
Investment securities loss |
|
(23.4 |
) |
|
|
— |
|
|
(23.4 |
) |
100.0 |
|
|
|
(0.1 |
) |
|
|
(23.3 |
) |
NM |
|
Other income |
|
2.2 |
|
|
|
3.4 |
|
|
(1.2 |
) |
(35.3 |
) |
|
|
5.6 |
|
|
|
(3.4 |
) |
(60.7 |
) |
Total non-interest income |
$ |
16.4 |
|
|
$ |
41.6 |
|
$ |
(25.2 |
) |
(60.6 |
)% |
|
$ |
48.8 |
|
|
$ |
(32.4 |
) |
(66.4 |
)% |
Non-interest income during the first quarter of 2023 decreased
Compared to the first quarter of 2022, non-interest income decreased
NON-INTEREST EXPENSE
For the Quarter Ended |
|
|
|
|
$ Change |
% Change |
|
|
|
$ Change |
% Change |
|||||||||
(Dollars in millions) |
|
|
|
|
||||||||||||||||
Salaries and wages |
$ |
65.6 |
|
$ |
75.4 |
|
$ |
(9.8 |
) |
(13.0 |
)% |
|
$ |
60.0 |
|
$ |
5.6 |
|
9.3 |
% |
Employee benefits |
|
22.8 |
|
|
17.3 |
|
|
5.5 |
|
31.8 |
|
|
|
21.2 |
|
|
1.6 |
|
7.5 |
|
Occupancy and equipment |
|
18.4 |
|
|
17.9 |
|
|
0.5 |
|
2.8 |
|
|
|
15.4 |
|
|
3.0 |
|
19.5 |
|
Other intangible amortization |
|
4.0 |
|
|
4.1 |
|
|
(0.1 |
) |
(2.4 |
) |
|
|
3.6 |
|
|
0.4 |
|
11.1 |
|
Other expenses |
|
54.8 |
|
|
54.5 |
|
|
0.3 |
|
0.6 |
|
|
|
41.7 |
|
|
13.1 |
|
31.4 |
|
Other real estate owned expense |
|
0.2 |
|
|
2.2 |
|
|
(2.0 |
) |
(90.9 |
) |
|
|
0.1 |
|
|
0.1 |
|
100.0 |
|
Acquisition related expenses |
|
— |
|
|
3.9 |
|
|
(3.9 |
) |
(100.0 |
) |
|
|
65.2 |
|
|
(65.2 |
) |
(100.0 |
) |
Total non-interest expense |
$ |
165.8 |
|
$ |
175.3 |
|
$ |
(9.5 |
) |
(5.4 |
)% |
|
$ |
207.2 |
|
$ |
(41.4 |
) |
(20.0 |
)% |
The Company’s non-interest expense was
Compared to the first quarter of 2022, non-interest expense decreased by
BALANCE SHEET
Total assets decreased
Investment securities decreased
The following table presents the composition and comparison of loans held for investment as of the quarters-ended:
|
|
|
$
|
%
|
|
$
|
%
|
||||||||||||
Real estate loans: |
|
|
|
|
|
|
|
||||||||||||
Commercial |
$ |
8,680.8 |
|
$ |
8,528.6 |
|
$ |
152.2 |
|
1.8 |
% |
$ |
7,805.7 |
|
$ |
875.1 |
|
11.2 |
% |
Construction loans: |
|
|
|
|
|
|
|
||||||||||||
Land acquisition & development |
|
368.5 |
|
|
386.2 |
|
|
(17.7 |
) |
(4.6 |
) |
|
344.8 |
|
|
23.7 |
|
6.9 |
|
Residential |
|
471.4 |
|
|
516.2 |
|
|
(44.8 |
) |
(8.7 |
) |
|
406.0 |
|
|
65.4 |
|
16.1 |
|
Commercial |
|
1,053.1 |
|
|
1,042.0 |
|
|
11.1 |
|
1.1 |
|
|
844.8 |
|
|
208.3 |
|
24.7 |
|
Total construction loans |
|
1,893.0 |
|
|
1,944.4 |
|
|
(51.4 |
) |
(2.6 |
) |
|
1,595.6 |
|
|
297.4 |
|
18.6 |
|
Residential |
|
2,191.1 |
|
|
2,188.3 |
|
|
2.8 |
|
0.1 |
|
|
1,997.5 |
|
|
193.6 |
|
9.7 |
|
Agricultural |
|
769.7 |
|
|
794.9 |
|
|
(25.2 |
) |
(3.2 |
) |
|
833.6 |
|
|
(63.9 |
) |
(7.7 |
) |
Total real estate loans |
|
13,534.6 |
|
|
13,456.2 |
|
|
78.4 |
|
0.6 |
|
|
12,232.4 |
|
|
1,302.2 |
|
10.6 |
|
Consumer loans: |
|
|
|
|
|
|
|
||||||||||||
Indirect |
|
817.3 |
|
|
829.7 |
|
|
(12.4 |
) |
(1.5 |
) |
|
739.6 |
|
|
77.7 |
|
10.5 |
|
Direct and advance lines |
|
146.9 |
|
|
152.9 |
|
|
(6.0 |
) |
(3.9 |
) |
|
142.5 |
|
|
4.4 |
|
3.1 |
|
Credit card |
|
71.5 |
|
|
75.9 |
|
|
(4.4 |
) |
(5.8 |
) |
|
73.5 |
|
|
(2.0 |
) |
(2.7 |
) |
Total consumer loans |
|
1,035.7 |
|
|
1,058.5 |
|
|
(22.8 |
) |
(2.2 |
) |
|
955.6 |
|
|
80.1 |
|
8.4 |
|
Commercial |
|
3,028.0 |
|
|
2,882.6 |
|
|
145.4 |
|
5.0 |
|
|
3,017.9 |
|
|
10.1 |
|
0.3 |
|
Agricultural |
|
660.4 |
|
|
708.3 |
|
|
(47.9 |
) |
(6.8 |
) |
|
744.3 |
|
|
(83.9 |
) |
(11.3 |
) |
Other, including overdrafts |
|
1.6 |
|
|
9.2 |
|
|
(7.6 |
) |
(82.6 |
) |
|
4.6 |
|
|
(3.0 |
) |
(65.2 |
) |
Deferred loan fees and costs |
|
(14.6 |
) |
|
(15.6 |
) |
|
1.0 |
|
(6.4 |
) |
|
(9.8 |
) |
|
(4.8 |
) |
49.0 |
|
Loans held for investment, net of deferred loan fees and costs |
$ |
18,245.7 |
|
$ |
18,099.2 |
|
$ |
146.5 |
|
0.8 |
% |
$ |
16,945.0 |
|
$ |
1,300.7 |
|
7.7 |
% |
The ratio of loans held for investment to deposits increased to
Total deposits decreased
Securities sold under repurchase agreements decreased
Other borrowed funds is comprised of
The Company is considered to be “well-capitalized” as of
CREDIT QUALITY
As of
Criticized loans increased
Net loan charge-offs increased to
NON-GAAP FINANCIAL MEASURES
In addition to results presented in accordance with accounting principles generally accepted in
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). To derive the non-GAAP financial measure identified in subclause (vii) above, the Company adjusts its net interest income to include its FTE interest income and exclude purchase accounting interest accretion on acquired loans and PPP loan income, and it adjusts average interest-earning assets to exclude average PPP loan balances. 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, Great Western’s or the combined company’s 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 change over time and 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, governmental regulations or policies;
- 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 the Community Reinvestment Act and fair lending laws, the
USA PATRIOT ACT,Office of Foreign Asset Control guidelines and requirements, the Bank Secrecy Act, and the relatedFinancial Crimes Enforcement Network and Federal Financial Institutions Examination Council’s guidelines and regulations; - lending and deposit risks and risks associated with 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;
- 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;
- changes in interest rates;
-
changes to
United States trade policies, including the imposition of tariffs and retaliatory tariffs; - competition from new or existing financial institutions and non-banks;
- variable interest rates tied to London Interbank Offered Rate that may no longer be available or may become unreliable;
- cyber-security risks, including “denial-of-service attacks,” “hacking,” and “identity theft” 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;
- the potential impairment of our goodwill and other intangible assets;
- exposure to losses in collateralized loan obligation securities;
- exposure to losses in investment securities;
- our reliance on other companies that provide key components of our business infrastructure;
- events that may tarnish our reputation;
- 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 environmental remediation;
- the effectiveness of our systems of internal operating controls;
- our ability to implement new technology-facilitated products and services or be successful in marketing these products and services to our clients;
- difficulties we may face in combining the operations of acquired entities or assets with our own operations or assessing the effectiveness of businesses in which we make strategic investments or with which we enter into strategic contractual relationships;
- 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 and the 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 ongoing impact of the COVID-19 pandemic and the
U.S. , state and local government’s response to the pandemic; -
changes in general economic conditions caused by inflation, recession, acts of terrorism, and outbreak of hostilities, or other international or domestic calamities, including wars or international conflicts with respect to which
the United States may or may not be directly involved, unemployment, or other economic and geopolitical factors; - 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
First Quarter 2023 Conference Call for Investors
About
Consolidated Statements of Income (Unaudited) |
||||||||||||||||||||
|
Quarter Ended |
|
% Change |
|
||||||||||||||||
(In millions, except % and per share data) |
|
|
|
|
|
|
1Q23 vs
|
1Q23 vs
|
|
|||||||||||
Net interest income |
$ |
238.9 |
|
$ |
258.4 |
$ |
266.8 |
|
$ |
239.0 |
|
$ |
178.4 |
|
|
(7.5 |
)% |
33.9 |
% |
|
Net interest income on a fully-taxable equivalent ("FTE") basis |
|
240.7 |
|
|
260.7 |
|
268.9 |
|
|
241.1 |
|
|
180.0 |
|
|
(7.7 |
) |
33.7 |
|
|
Provision for (reduction in) credit losses |
|
15.2 |
|
|
14.7 |
|
8.4 |
|
|
(1.7 |
) |
|
61.3 |
|
|
3.4 |
|
NM |
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|||||||||||
Payment services revenues |
|
18.7 |
|
|
19.4 |
|
20.4 |
|
|
19.5 |
|
|
14.8 |
|
|
(3.6 |
) |
26.4 |
|
|
Mortgage banking revenues |
|
2.3 |
|
|
2.6 |
|
2.7 |
|
|
5.0 |
|
|
8.4 |
|
|
(11.5 |
) |
(72.6 |
) |
|
Wealth management revenues |
|
9.0 |
|
|
8.4 |
|
8.5 |
|
|
9.3 |
|
|
8.1 |
|
|
7.1 |
|
11.1 |
|
|
Service charges on deposit accounts |
|
5.2 |
|
|
4.9 |
|
5.7 |
|
|
6.3 |
|
|
7.7 |
|
|
6.1 |
|
(32.5 |
) |
|
Other service charges, commissions, and fees |
|
2.4 |
|
|
2.9 |
|
4.7 |
|
|
3.6 |
|
|
4.3 |
|
|
(17.2 |
) |
(44.2 |
) |
|
Total fee-based revenues |
|
37.6 |
|
|
38.2 |
|
42.0 |
|
|
43.7 |
|
|
43.3 |
|
|
(1.6 |
) |
(13.2 |
) |
|
Investment securities loss |
|
(23.4 |
) |
|
— |
|
(24.2 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
|
100.0 |
|
NM |
|
|
Other income |
|
2.2 |
|
|
3.4 |
|
5.1 |
|
|
6.3 |
|
|
5.6 |
|
|
(35.3 |
) |
(60.7 |
) |
|
Total non-interest income |
|
16.4 |
|
|
41.6 |
|
22.9 |
|
|
49.9 |
|
|
48.8 |
|
|
(60.6 |
) |
(66.4 |
) |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries and wages |
|
65.6 |
|
|
75.4 |
|
71.9 |
|
|
74.8 |
|
|
60.0 |
|
|
(13.0 |
) |
9.3 |
|
|
Employee benefits |
|
22.8 |
|
|
17.3 |
|
19.6 |
|
|
19.4 |
|
|
21.2 |
|
|
31.8 |
|
7.5 |
|
|
Occupancy and equipment |
|
18.4 |
|
|
17.9 |
|
17.1 |
|
|
17.0 |
|
|
15.4 |
|
|
2.8 |
|
19.5 |
|
|
Other intangible amortization |
|
4.0 |
|
|
4.1 |
|
4.1 |
|
|
4.1 |
|
|
3.6 |
|
|
(2.4 |
) |
11.1 |
|
|
Other expenses |
|
54.8 |
|
|
54.5 |
|
56.5 |
|
|
49.2 |
|
|
41.7 |
|
|
0.6 |
|
31.4 |
|
|
Other real estate owned expense |
|
0.2 |
|
|
2.2 |
|
— |
|
|
— |
|
|
0.1 |
|
|
(90.9 |
) |
100.0 |
|
|
Acquisition related expenses |
|
— |
|
|
3.9 |
|
4.0 |
|
|
45.8 |
|
|
65.2 |
|
|
(100.0 |
) |
(100.0 |
) |
|
Total non-interest expense |
|
165.8 |
|
|
175.3 |
|
173.2 |
|
|
210.3 |
|
|
207.2 |
|
|
(5.4 |
) |
(20.0 |
) |
|
Income (loss) before income tax |
|
74.3 |
|
|
110.0 |
|
108.1 |
|
|
80.3 |
|
|
(41.3 |
) |
|
(32.5 |
) |
(279.9 |
) |
|
Provision for (benefit from) income tax |
|
18.0 |
|
|
24.2 |
|
22.4 |
|
|
16.2 |
|
|
(7.9 |
) |
|
(25.6 |
) |
(327.8 |
) |
|
Net income (loss) |
$ |
56.3 |
|
$ |
85.8 |
$ |
85.7 |
|
$ |
64.1 |
|
$ |
(33.4 |
) |
|
(34.4 |
)% |
(268.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted-average basic shares outstanding |
|
103,738 |
|
|
104,445 |
|
106,526 |
|
|
109,107 |
|
|
92,855 |
|
|
(0.7 |
)% |
11.7 |
% |
|
Weighted-average diluted shares outstanding |
|
103,819 |
|
|
104,548 |
|
106,590 |
|
|
109,132 |
|
|
92,855 |
|
|
(0.7 |
) |
11.8 |
|
|
Earnings (loss) per share - basic |
$ |
0.54 |
|
$ |
0.82 |
$ |
0.80 |
|
$ |
0.59 |
|
$ |
(0.36 |
) |
|
(34.1 |
) |
(250.0 |
) |
|
Earnings (loss) per share - diluted |
|
0.54 |
|
|
0.82 |
|
0.80 |
|
|
0.59 |
|
|
(0.36 |
) |
|
(34.1 |
) |
(250.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NM - not meaningful |
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated Balance Sheets (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
% Change |
|||||||||||||||
(In millions, except % and per share data) |
|
|
|
|
|
|
1Q23 vs
|
1Q23 vs
|
||||||||||||
Assets: |
|
|
|
|
|
|
|
|
||||||||||||
Cash and due from banks |
$ |
332.9 |
|
$ |
349.2 |
|
$ |
390.4 |
|
$ |
425.3 |
|
$ |
387.6 |
|
|
(4.7 |
)% |
(14.1 |
)% |
Interest-bearing deposits in banks |
|
747.7 |
|
|
521.2 |
|
|
201.4 |
|
|
633.9 |
|
|
3,423.6 |
|
|
43.5 |
|
(78.2 |
) |
Federal funds sold |
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
— |
|
— |
|
Cash and cash equivalents |
|
1,080.7 |
|
|
870.5 |
|
|
591.9 |
|
|
1,059.3 |
|
|
3,811.3 |
|
|
24.1 |
|
(71.6 |
) |
Securities purchased under agreement to resell |
|
— |
|
|
— |
|
|
— |
|
|
202.2 |
|
|
102.0 |
|
|
— |
|
— |
|
Investment securities, net |
|
9,425.5 |
|
|
10,397.9 |
|
|
10,269.1 |
|
|
10,871.1 |
|
|
9,502.5 |
|
|
(9.4 |
) |
(0.8 |
) |
Investment in |
|
214.5 |
|
|
198.6 |
|
|
131.9 |
|
|
107.4 |
|
|
99.7 |
|
|
8.0 |
|
115.1 |
|
Loans held for sale, at fair value |
|
80.9 |
|
|
79.9 |
|
|
93.6 |
|
|
127.4 |
|
|
178.1 |
|
|
1.3 |
|
(54.6 |
) |
Loans held for investment |
|
18,245.7 |
|
|
18,099.2 |
|
|
17,603.5 |
|
|
17,162.5 |
|
|
16,945.0 |
|
|
0.8 |
|
7.7 |
|
Allowance for credit losses |
|
226.1 |
|
|
220.1 |
|
|
213.0 |
|
|
220.4 |
|
|
247.2 |
|
|
2.7 |
|
(8.5 |
) |
Net loans held for investment |
|
18,019.6 |
|
|
17,879.1 |
|
|
17,390.5 |
|
|
16,942.1 |
|
|
16,697.8 |
|
|
0.8 |
|
7.9 |
|
|
|
1,221.9 |
|
|
1,225.9 |
|
|
1,229.0 |
|
|
1,232.9 |
|
|
1,275.2 |
|
|
(0.3 |
) |
(4.2 |
) |
Company owned life insurance |
|
499.4 |
|
|
497.9 |
|
|
495.6 |
|
|
492.8 |
|
|
490.1 |
|
|
0.3 |
|
1.9 |
|
Premises and equipment |
|
443.4 |
|
|
444.7 |
|
|
445.4 |
|
|
442.7 |
|
|
444.4 |
|
|
(0.3 |
) |
(0.2 |
) |
Other real estate owned |
|
13.4 |
|
|
12.7 |
|
|
16.4 |
|
|
16.8 |
|
|
17.5 |
|
|
5.5 |
|
(23.4 |
) |
Mortgage servicing rights |
|
30.1 |
|
|
31.1 |
|
|
31.8 |
|
|
32.1 |
|
|
32.7 |
|
|
(3.2 |
) |
(8.0 |
) |
Other assets |
|
608.3 |
|
|
649.5 |
|
|
649.5 |
|
|
535.0 |
|
|
510.9 |
|
|
(6.3 |
) |
19.1 |
|
Total assets |
$ |
31,637.7 |
|
$ |
32,287.8 |
|
$ |
31,344.7 |
|
$ |
32,061.8 |
|
$ |
33,162.2 |
|
|
(2.0 |
)% |
(4.6 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and stockholders' equity: |
|
|
|
|
|
|
|
|
||||||||||||
Deposits |
$ |
24,107.0 |
|
$ |
25,073.6 |
|
$ |
25,884.8 |
|
$ |
26,863.8 |
|
$ |
28,088.3 |
|
|
(3.9 |
)% |
(14.2 |
)% |
Securities sold under repurchase agreements |
|
970.8 |
|
|
1,052.9 |
|
|
1,075.6 |
|
|
1,234.7 |
|
|
1,071.0 |
|
|
(7.8 |
) |
(9.4 |
) |
Long-term debt |
|
120.8 |
|
|
120.8 |
|
|
120.7 |
|
|
120.4 |
|
|
120.4 |
|
|
— |
|
0.3 |
|
Other borrowed funds |
|
2,710.0 |
|
|
2,327.0 |
|
|
625.0 |
|
|
— |
|
|
— |
|
|
16.5 |
|
100.0 |
|
Subordinated debentures held by subsidiary trusts |
|
163.1 |
|
|
163.1 |
|
|
163.1 |
|
|
163.1 |
|
|
163.1 |
|
|
— |
|
— |
|
Other liabilities |
|
405.7 |
|
|
476.6 |
|
|
470.0 |
|
|
407.9 |
|
|
278.3 |
|
|
(14.9 |
) |
45.8 |
|
Total liabilities |
|
28,477.4 |
|
|
29,214.0 |
|
|
28,339.2 |
|
|
28,789.9 |
|
|
29,721.1 |
|
|
(2.5 |
) |
(4.2 |
) |
Stockholders' equity: |
|
|
|
|
|
|
|
|
||||||||||||
Common stock |
|
2,478.7 |
|
|
2,478.2 |
|
|
2,477.4 |
|
|
2,607.9 |
|
|
2,668.6 |
|
|
— |
|
(7.1 |
) |
Retained earnings |
|
1,080.7 |
|
|
1,072.7 |
|
|
1,035.8 |
|
|
993.8 |
|
|
974.5 |
|
|
0.7 |
|
10.9 |
|
Accumulated other comprehensive (loss) income |
|
(399.1 |
) |
|
(477.1 |
) |
|
(507.7 |
) |
|
(329.8 |
) |
|
(202.0 |
) |
|
(16.3 |
) |
97.6 |
|
Total stockholders' equity |
|
3,160.3 |
|
|
3,073.8 |
|
|
3,005.5 |
|
|
3,271.9 |
|
|
3,441.1 |
|
|
2.8 |
|
(8.2 |
) |
Total liabilities and stockholders' equity |
$ |
31,637.7 |
|
$ |
32,287.8 |
|
$ |
31,344.7 |
|
$ |
32,061.8 |
|
$ |
33,162.2 |
|
|
(2.0 |
)% |
(4.6 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
Common shares outstanding at period end |
|
104,382 |
|
|
104,442 |
|
|
104,451 |
|
|
107,758 |
|
|
109,503 |
|
|
(0.1 |
)% |
(4.7 |
)% |
Book value per common share at period end |
$ |
30.28 |
|
$ |
29.43 |
|
$ |
28.77 |
|
$ |
30.36 |
|
$ |
31.42 |
|
|
2.9 |
|
(3.6 |
) |
Tangible book value per common share at period end** |
|
18.57 |
|
|
17.69 |
|
|
17.01 |
|
|
18.92 |
|
|
19.78 |
|
|
5.0 |
|
(6.1 |
) |
|
|
|
|
|
|
|
|
|
||||||||||||
**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. |
||||||||||||||||||||
Loans and Deposits (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
% Change |
|||||||||||||||
(In millions, except %) |
|
|
|
|
|
|
1Q23 vs
|
1Q23 vs
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Loans: |
|
|
|
|
|
|
|
|
||||||||||||
Real Estate: |
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate |
$ |
8,680.8 |
|
$ |
8,528.6 |
|
$ |
8,026.9 |
|
$ |
7,857.7 |
|
$ |
7,805.7 |
|
|
1.8 |
% |
11.2 |
% |
Construction: |
|
|
|
|
|
|
|
|
||||||||||||
Land acquisition and development |
|
368.5 |
|
|
386.2 |
|
|
393.2 |
|
|
355.7 |
|
|
344.8 |
|
|
(4.6 |
) |
6.9 |
|
Residential |
|
471.4 |
|
|
516.2 |
|
|
501.4 |
|
|
444.8 |
|
|
406.0 |
|
|
(8.7 |
) |
16.1 |
|
Commercial |
|
1,053.1 |
|
|
1,042.0 |
|
|
1,128.4 |
|
|
959.0 |
|
|
844.8 |
|
|
1.1 |
|
24.7 |
|
Total construction |
|
1,893.0 |
|
|
1,944.4 |
|
|
2,023.0 |
|
|
1,759.5 |
|
|
1,595.6 |
|
|
(2.6 |
) |
18.6 |
|
Residential real estate |
|
2,191.1 |
|
|
2,188.3 |
|
|
2,127.7 |
|
|
2,060.4 |
|
|
1,997.5 |
|
|
0.1 |
|
9.7 |
|
Agricultural real estate |
|
769.7 |
|
|
794.9 |
|
|
800.9 |
|
|
821.5 |
|
|
833.6 |
|
|
(3.2 |
) |
(7.7 |
) |
Total real estate |
|
13,534.6 |
|
|
13,456.2 |
|
|
12,978.5 |
|
|
12,499.1 |
|
|
12,232.4 |
|
|
0.6 |
|
10.6 |
|
Consumer: |
|
|
|
|
|
|
|
|
||||||||||||
Indirect |
|
817.3 |
|
|
829.7 |
|
|
780.8 |
|
|
733.9 |
|
|
739.6 |
|
|
(1.5 |
) |
10.5 |
|
Direct |
|
146.9 |
|
|
152.9 |
|
|
155.0 |
|
|
157.3 |
|
|
142.5 |
|
|
(3.9 |
) |
3.1 |
|
Credit card |
|
71.5 |
|
|
75.9 |
|
|
74.2 |
|
|
74.8 |
|
|
73.5 |
|
|
(5.8 |
) |
(2.7 |
) |
Total consumer |
|
1,035.7 |
|
|
1,058.5 |
|
|
1,010.0 |
|
|
966.0 |
|
|
955.6 |
|
|
(2.2 |
) |
8.4 |
|
Commercial |
|
3,028.0 |
|
|
2,882.6 |
|
|
2,966.1 |
|
|
3,036.0 |
|
|
3,017.9 |
|
|
5.0 |
|
0.3 |
|
Agricultural |
|
660.4 |
|
|
708.3 |
|
|
658.2 |
|
|
672.0 |
|
|
744.3 |
|
|
(6.8 |
) |
(11.3 |
) |
Other |
|
1.6 |
|
|
9.2 |
|
|
3.8 |
|
|
— |
|
|
4.6 |
|
|
(82.6 |
) |
(65.2 |
) |
Deferred loan fees and costs |
|
(14.6 |
) |
|
(15.6 |
) |
|
(13.1 |
) |
|
(10.6 |
) |
|
(9.8 |
) |
|
(6.4 |
) |
49.0 |
|
Loans held for investment |
$ |
18,245.7 |
|
$ |
18,099.2 |
|
$ |
17,603.5 |
|
$ |
17,162.5 |
|
$ |
16,945.0 |
|
|
0.8 |
% |
7.7 |
% |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits: |
|
|
|
|
|
|
|
|
||||||||||||
Non-interest-bearing |
$ |
6,861.1 |
|
$ |
7,560.0 |
|
$ |
8,163.3 |
|
$ |
8,295.4 |
|
$ |
8,240.6 |
|
|
(9.2 |
)% |
(16.7 |
)% |
Interest-bearing: |
|
|
|
|
|
|
|
|
||||||||||||
Demand |
|
6,714.1 |
|
|
7,205.9 |
|
|
7,595.1 |
|
|
8,133.3 |
|
|
8,245.0 |
|
|
(6.8 |
) |
(18.6 |
) |
Savings |
|
8,282.9 |
|
|
8,379.3 |
|
|
8,497.2 |
|
|
8,939.4 |
|
|
10,004.3 |
|
|
(1.2 |
) |
(17.2 |
) |
Time, |
|
526.5 |
|
|
438.0 |
|
|
319.3 |
|
|
272.1 |
|
|
359.8 |
|
|
20.2 |
|
46.3 |
|
Time, other |
|
1,722.4 |
|
|
1,490.4 |
|
|
1,309.9 |
|
|
1,223.6 |
|
|
1,238.6 |
|
|
15.6 |
|
39.1 |
|
Total interest-bearing |
|
17,245.9 |
|
|
17,513.6 |
|
|
17,721.5 |
|
|
18,568.4 |
|
|
19,847.7 |
|
|
(1.5 |
) |
(13.1 |
) |
Total deposits |
$ |
24,107.0 |
|
$ |
25,073.6 |
|
$ |
25,884.8 |
|
$ |
26,863.8 |
|
$ |
28,088.3 |
|
|
(3.9 |
)% |
(14.2 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
Total core deposits (1) |
$ |
23,580.5 |
|
$ |
24,635.6 |
|
$ |
25,565.5 |
|
$ |
26,591.7 |
|
$ |
27,728.5 |
|
|
(4.3 |
)% |
(15.0 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
(1) Core deposits are defined as total deposits less time deposits, |
||||||||||||||||||||
Credit Quality (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
% Change |
|||||||||||||||
(In millions, except %) |
|
|
|
|
|
|
1Q23 vs
|
1Q23 vs
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for Credit Losses: |
|
|
|
|
|
|
|
|
||||||||||||
Allowance for credit losses |
$ |
226.1 |
|
$ |
220.1 |
|
$ |
213.0 |
|
$ |
220.4 |
|
$ |
247.2 |
|
|
2.7 |
% |
(8.5 |
)% |
As a percentage of loans held for investment |
|
1.24 |
% |
|
1.22 |
% |
|
1.21 |
% |
|
1.28 |
% |
|
1.46 |
% |
|
|
|
||
As a percentage of non-accrual loans |
|
279.83 |
|
|
371.79 |
|
|
268.26 |
|
|
205.98 |
|
|
207.91 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||||||
Net loan charge-offs during quarter |
$ |
6.2 |
|
$ |
1.1 |
|
$ |
12.0 |
|
$ |
0.3 |
|
$ |
16.7 |
|
|
NM |
|
(62.9 |
)% |
Annualized as a percentage of average loans |
|
0.14 |
% |
|
0.02 |
% |
|
0.27 |
% |
|
0.01 |
% |
|
0.47 |
% |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||||||
Non-Performing Assets: |
|
|
|
|
|
|
|
|
||||||||||||
Non-accrual loans |
$ |
80.8 |
|
$ |
59.2 |
|
$ |
79.4 |
|
$ |
107.0 |
|
$ |
118.9 |
|
|
36.5 |
% |
(32.0 |
)% |
Accruing loans past due 90 days or more |
|
4.5 |
|
|
6.4 |
|
|
6.6 |
|
|
2.9 |
|
|
2.7 |
|
|
(29.7 |
) |
66.7 |
|
Total non-performing loans |
|
85.3 |
|
|
65.6 |
|
|
86.0 |
|
|
109.9 |
|
|
121.6 |
|
|
30.0 |
|
(29.9 |
) |
Other real estate owned |
|
13.4 |
|
|
12.7 |
|
|
16.4 |
|
|
16.8 |
|
|
17.5 |
|
|
5.5 |
|
(23.4 |
) |
Total non-performing assets |
$ |
98.7 |
|
$ |
78.3 |
|
$ |
102.4 |
|
$ |
126.7 |
|
$ |
139.1 |
|
|
26.1 |
% |
(29.0 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
Non-performing assets as a percentage of: |
|
|
|
|
|
|
|
|
||||||||||||
Loans held for investment and OREO |
|
0.54 |
% |
|
0.43 |
% |
|
0.58 |
% |
|
0.74 |
% |
|
0.82 |
% |
|
|
|
||
Total assets |
|
0.31 |
|
|
0.24 |
|
|
0.33 |
|
|
0.40 |
|
|
0.42 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||||||
Non-accrual loans to loans held for investment |
|
0.44 |
|
|
0.33 |
|
|
0.45 |
|
|
0.62 |
|
|
0.70 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||||||
Accruing Loans 30-89 Days Past Due |
$ |
52.3 |
|
$ |
62.3 |
|
$ |
52.5 |
|
$ |
56.4 |
|
$ |
54.4 |
|
|
(16.1 |
)% |
(3.9 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
Criticized Loans: |
|
|
|
|
|
|
|
|
||||||||||||
Special Mention |
$ |
243.8 |
|
$ |
290.4 |
|
$ |
273.7 |
|
$ |
275.9 |
|
$ |
274.6 |
|
|
(16.0 |
)% |
(11.2 |
)% |
Substandard |
|
355.0 |
|
|
316.2 |
|
|
277.7 |
|
|
461.4 |
|
|
553.9 |
|
|
12.3 |
|
(35.9 |
) |
Doubtful |
|
22.8 |
|
|
8.5 |
|
|
25.5 |
|
|
42.7 |
|
|
24.6 |
|
|
168.2 |
|
(7.3 |
) |
Total |
$ |
621.6 |
|
$ |
615.1 |
|
$ |
576.9 |
|
$ |
780.0 |
|
$ |
853.1 |
|
|
1.1 |
% |
(27.1 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
NM - not meaningful |
||||||||||||||||||||
Selected Ratios - Annualized (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized Financial Ratios (GAAP) |
|
|||||||||||||||||||
Return on average assets |
|
0.71 |
% |
|
|
1.07 |
% |
|
|
1.07 |
% |
|
|
0.79 |
% |
|
|
(0.48 |
)% |
|
Return on average common stockholders' equity |
|
7.25 |
|
|
|
11.16 |
|
|
|
10.49 |
|
|
|
7.52 |
|
|
|
(4.44 |
) |
|
Yield on average earning assets |
|
4.43 |
|
|
|
4.24 |
|
|
|
3.99 |
|
|
|
3.35 |
|
|
|
2.89 |
|
|
Cost of average interest-bearing liabilities |
|
1.46 |
|
|
|
0.89 |
|
|
|
0.40 |
|
|
|
0.14 |
|
|
|
0.14 |
|
|
Interest rate spread |
|
2.97 |
|
|
|
3.35 |
|
|
|
3.59 |
|
|
|
3.21 |
|
|
|
2.75 |
|
|
Net interest margin ratio |
|
3.36 |
|
|
|
3.61 |
|
|
|
3.71 |
|
|
|
3.25 |
|
|
|
2.80 |
|
|
Efficiency ratio |
|
63.38 |
|
|
|
57.07 |
|
|
|
58.37 |
|
|
|
71.37 |
|
|
|
89.61 |
|
|
Loans held for investment to deposit ratio |
|
75.69 |
|
|
|
72.18 |
|
|
|
68.01 |
|
|
|
63.89 |
|
|
|
60.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized Financial Ratios - Operating** (Non-GAAP) |
|
|||||||||||||||||||
Tangible book value per common share |
$ |
18.57 |
|
|
$ |
17.69 |
|
|
$ |
17.01 |
|
|
$ |
18.92 |
|
|
$ |
19.78 |
|
|
Tangible common stockholders' equity to tangible assets |
|
6.37 |
% |
|
|
5.95 |
% |
|
|
5.90 |
% |
|
|
6.61 |
% |
|
|
6.79 |
% |
|
Return on average tangible common stockholders' equity |
|
11.87 |
|
|
|
18.67 |
|
|
|
16.93 |
|
|
|
11.78 |
|
|
|
(6.88 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Capital Ratios |
|
|||||||||||||||||||
Total risk-based capital to total risk-weighted assets |
|
12.63 |
% |
* |
|
12.48 |
% |
|
|
12.50 |
% |
|
|
13.16 |
% |
|
|
13.79 |
% |
|
Tier 1 risk-based capital to total risk-weighted assets |
|
10.52 |
|
* |
|
10.45 |
|
|
|
10.49 |
|
|
|
11.09 |
|
|
|
11.52 |
|
|
Tier 1 common capital to total risk-weighted assets |
|
10.52 |
|
* |
|
10.45 |
|
|
|
10.49 |
|
|
|
11.09 |
|
|
|
11.52 |
|
|
Leverage Ratio |
|
7.72 |
|
* |
|
7.75 |
|
|
|
7.67 |
|
|
|
7.72 |
|
|
|
8.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
*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 |
|
|||||||||||||||||||
**Non-GAAP financial measures - see Non-GAAP Financial Measures included herein for a reconciliation of 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). |
|
|||||||||||||||||||
|
|||||||||||||||||||||||
Average Balance Sheets |
|||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended |
||||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||
(In millions, except %) |
Average Balance |
Interest |
Average Rate |
|
Average Balance |
Interest |
Average Rate |
|
Average Balance |
Interest |
Average Rate |
||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans (1) (2) |
$ |
18,273.6 |
$ |
237.2 |
|
5.26 |
% |
|
$ |
17,920.5 |
$ |
230.5 |
|
5.10 |
% |
|
$ |
14,460.6 |
$ |
153.0 |
|
4.29 |
% |
Investment securities (2) |
|
10,208.8 |
|
73.3 |
|
2.91 |
|
|
|
10,383.8 |
|
71.6 |
|
2.74 |
|
|
|
8,279.3 |
|
30.9 |
|
1.51 |
|
Investment in FHLB and FRB stock |
|
210.5 |
|
3.0 |
|
5.78 |
|
|
|
156.4 |
|
2.0 |
|
5.07 |
|
|
|
83.6 |
|
0.4 |
|
1.94 |
|
Interest-bearing deposits in banks |
|
365.7 |
|
4.2 |
|
4.66 |
|
|
|
220.1 |
|
2.2 |
|
3.97 |
|
|
|
3,263.1 |
|
1.7 |
|
0.21 |
|
Federal funds sold |
|
0.8 |
|
— |
|
— |
|
|
|
0.1 |
|
— |
|
— |
|
|
|
0.1 |
|
— |
|
— |
|
Total interest-earning assets |
$ |
29,059.4 |
$ |
317.7 |
|
4.43 |
% |
|
$ |
28,680.9 |
$ |
306.3 |
|
4.24 |
% |
|
$ |
26,086.7 |
$ |
186.0 |
|
2.89 |
% |
Non-earning assets |
|
2,951.5 |
|
|
|
|
3,035.1 |
|
|
|
|
2,408.4 |
|
|
|||||||||
Total assets |
$ |
32,010.9 |
|
|
|
$ |
31,716.0 |
|
|
|
$ |
28,495.1 |
|
|
|||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Demand deposits |
$ |
6,973.4 |
$ |
8.7 |
|
0.51 |
% |
|
$ |
7,412.7 |
$ |
7.9 |
|
0.42 |
% |
|
$ |
6,901.8 |
$ |
0.9 |
|
0.05 |
% |
Savings deposits |
|
8,406.9 |
|
22.8 |
|
1.10 |
|
|
|
8,446.7 |
|
14.8 |
|
0.70 |
|
|
|
8,332.7 |
|
1.1 |
|
0.05 |
|
Time deposits |
|
2,055.3 |
|
8.8 |
|
1.74 |
|
|
|
1,848.6 |
|
5.0 |
|
1.07 |
|
|
|
1,397.2 |
|
1.0 |
|
0.29 |
|
Repurchase agreements |
|
1,005.8 |
|
1.1 |
|
0.44 |
|
|
|
1,091.2 |
|
1.1 |
|
0.40 |
|
|
|
1,077.0 |
|
0.3 |
|
0.11 |
|
Other borrowed funds |
|
2,615.2 |
|
31.2 |
|
4.84 |
|
|
|
1,260.0 |
|
12.9 |
|
4.06 |
|
|
|
— |
|
— |
|
— |
|
Long-term debt |
|
120.8 |
|
1.5 |
|
5.04 |
|
|
|
120.8 |
|
1.4 |
|
4.60 |
|
|
|
127.5 |
|
1.7 |
|
5.41 |
|
Subordinated debentures held by subsidiary trusts |
|
163.1 |
|
2.9 |
|
7.21 |
|
|
|
163.1 |
|
2.5 |
|
6.08 |
|
|
|
136.9 |
|
1.0 |
|
2.96 |
|
Total interest-bearing liabilities |
$ |
21,340.5 |
$ |
77.0 |
|
1.46 |
% |
|
$ |
20,343.1 |
$ |
45.6 |
|
0.89 |
% |
|
$ |
17,973.1 |
$ |
6.0 |
|
0.14 |
% |
Non-interest-bearing deposits |
|
7,064.9 |
|
|
|
|
7,871.8 |
|
|
|
|
7,211.4 |
|
|
|||||||||
Other non-interest-bearing liabilities |
|
458.5 |
|
|
|
|
451.0 |
|
|
|
|
260.5 |
|
|
|||||||||
Stockholders’ equity |
|
3,147.0 |
|
|
|
|
3,050.1 |
|
|
|
|
3,050.1 |
|
|
|||||||||
Total liabilities and stockholders’ equity |
$ |
32,010.9 |
|
|
|
$ |
31,716.0 |
|
|
|
$ |
28,495.1 |
|
|
|||||||||
Net FTE interest income |
|
$ |
240.7 |
|
|
|
|
$ |
260.7 |
|
|
|
|
$ |
180.0 |
|
|
||||||
Less FTE adjustments (2) |
|
|
(1.8 |
) |
|
|
|
|
(2.3 |
) |
|
|
|
|
(1.6 |
) |
|
||||||
Net interest income from consolidated statements of income |
|
$ |
238.9 |
|
|
|
|
$ |
258.4 |
|
|
|
|
$ |
178.4 |
|
|
||||||
Interest rate spread |
|
|
2.97 |
% |
|
|
|
3.35 |
% |
|
|
|
2.75 |
% |
|||||||||
Net FTE interest margin (3) |
|
|
3.36 |
|
|
|
|
3.61 |
|
|
|
|
2.80 |
|
|||||||||
Cost of funds, including non-interest-bearing demand deposits (4) |
|
|
1.10 |
|
|
|
|
0.64 |
|
|
|
|
0.10 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) Average loan balances include loans held for sale and non-accrual loans. Interest income on loans includes amortization of deferred loan fees net of deferred loan costs of |
|||||||||||||||||||||||
(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 a FTE basis utilizing a |
|||||||||||||||||||||||
(3) Net FTE interest margin during the period equals (i) the difference between annualized interest income on interest-earning assets and the annualized interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period. |
|||||||||||||||||||||||
(4) Calculated by dividing total annualized interest on interest-bearing liabilities by the sum of total interest-bearing liabilities plus non-interest-bearing deposits. |
|||||||||||||||||||||||
|
||||||||||||||||
Non-GAAP Financial Measures |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
As of or For the Quarter Ended |
||||||||||||||
(In millions, except % and per share data) |
|
|
|
|
|
|
||||||||||
Total common stockholders' equity (GAAP) |
(A) |
$ |
3,160.3 |
|
$ |
3,073.8 |
|
$ |
3,005.5 |
|
$ |
3,271.9 |
|
$ |
3,441.1 |
|
Less goodwill and other intangible assets (excluding mortgage servicing rights) |
|
|
1,221.9 |
|
|
1,225.9 |
|
|
1,229.0 |
|
|
1,232.9 |
|
|
1,275.2 |
|
Tangible common stockholders' equity (Non-GAAP) |
(B) |
$ |
1,938.4 |
|
$ |
1,847.9 |
|
$ |
1,776.5 |
|
$ |
2,039.0 |
|
$ |
2,165.9 |
|
|
|
|
|
|
|
|
||||||||||
Total assets (GAAP) |
|
$ |
31,637.7 |
|
$ |
32,287.8 |
|
$ |
31,344.7 |
|
$ |
32,061.8 |
|
$ |
33,162.2 |
|
Less goodwill and other intangible assets (excluding mortgage servicing rights) |
|
|
1,221.9 |
|
|
1,225.9 |
|
|
1,229.0 |
|
|
1,232.9 |
|
|
1,275.2 |
|
Tangible assets (Non-GAAP) |
(C) |
$ |
30,415.8 |
|
$ |
31,061.9 |
|
$ |
30,115.7 |
|
$ |
30,828.9 |
|
$ |
31,887.0 |
|
|
|
|
|
|
|
|
||||||||||
Average Balances: |
|
|
|
|
|
|
||||||||||
Total common stockholders' equity (GAAP) |
(D) |
$ |
3,147.0 |
|
$ |
3,050.1 |
|
$ |
3,239.7 |
|
$ |
3,417.4 |
|
$ |
3,050.1 |
|
Less goodwill and other intangible assets (excluding mortgage servicing rights) |
|
|
1,223.8 |
|
|
1,226.9 |
|
|
1,230.9 |
|
|
1,235.1 |
|
|
1,081.2 |
|
Average tangible common stockholders' equity (Non-GAAP) |
(E) |
$ |
1,923.2 |
|
$ |
1,823.2 |
|
$ |
2,008.8 |
|
$ |
2,182.3 |
|
$ |
1,968.9 |
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
|
$ |
238.9 |
|
$ |
258.4 |
|
$ |
266.8 |
|
$ |
239.0 |
|
$ |
178.4 |
|
FTE interest income |
|
|
1.8 |
|
|
2.3 |
|
|
2.1 |
|
|
2.1 |
|
|
1.6 |
|
Net FTE interest income |
(F) |
|
240.7 |
|
|
260.7 |
|
|
268.9 |
|
|
241.1 |
|
|
180.0 |
|
Less purchase accounting accretion |
|
|
5.2 |
|
|
8.4 |
|
|
17.7 |
|
|
16.7 |
|
|
7.6 |
|
Less PPP income |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
1.1 |
|
|
2.8 |
|
Adjusted net FTE interest income |
(G) |
$ |
235.5 |
|
$ |
252.3 |
|
$ |
250.9 |
|
$ |
223.3 |
|
$ |
169.6 |
|
|
|
|
|
|
|
|
||||||||||
Average interest-earning assets |
(H) |
$ |
29,059.4 |
|
$ |
28,680.9 |
|
$ |
28,731.2 |
|
$ |
29,752.4 |
|
$ |
26,086.7 |
|
Less average PPP loans |
|
|
3.8 |
|
|
5.6 |
|
|
8.1 |
|
|
30.8 |
|
|
91.6 |
|
Adjusted average earning assets |
(I) |
$ |
29,055.6 |
|
$ |
28,675.3 |
|
$ |
28,723.1 |
|
$ |
29,721.6 |
|
$ |
25,995.1 |
|
|
|
|
|
|
|
|
||||||||||
Total quarterly average assets |
(J) |
$ |
32,010.9 |
|
$ |
31,716.0 |
|
$ |
31,653.7 |
|
$ |
32,611.3 |
|
$ |
28,495.1 |
|
Annualized net income available to common shareholders |
(K) |
|
228.3 |
|
|
340.4 |
|
|
340.0 |
|
|
257.1 |
|
|
(135.5 |
) |
Common shares outstanding |
(L) |
|
104,382 |
|
|
104,442 |
|
|
104,451 |
|
|
107,758 |
|
|
109,503 |
|
Return on average assets (GAAP) |
(K) / (J) |
|
0.71 |
% |
|
1.07 |
% |
|
1.07 |
% |
|
0.79 |
% |
|
(0.48 |
)% |
Return on average common stockholders' equity (GAAP) |
(K) / (D) |
|
7.25 |
|
|
11.16 |
|
|
10.49 |
|
|
7.52 |
|
|
(4.44 |
) |
Average common stockholders' equity to average assets (GAAP) |
( |
|
9.83 |
|
|
9.62 |
|
|
10.23 |
|
|
10.48 |
|
|
10.70 |
|
Book value per common share (GAAP) |
(A) / (L) |
$ |
30.28 |
|
$ |
29.43 |
|
$ |
28.77 |
|
$ |
30.36 |
|
$ |
31.42 |
|
Tangible book value per common share (Non-GAAP) |
(B) / (L) |
|
18.57 |
|
|
17.69 |
|
|
17.01 |
|
|
18.92 |
|
|
19.78 |
|
Tangible common stockholders' equity to tangible assets (Non-GAAP) |
(B) / (C) |
|
6.37 |
% |
|
5.95 |
% |
|
5.90 |
% |
|
6.61 |
% |
|
6.79 |
% |
Return on average tangible common stockholders' equity (Non-GAAP) |
(K) / (E) |
|
11.87 |
|
|
18.67 |
|
|
16.93 |
|
|
11.78 |
|
|
(6.88 |
) |
Net interest margin ratio (FTE) (Non-GAAP) |
(F*) / (H) |
|
3.36 |
|
|
3.61 |
|
|
3.71 |
|
|
3.25 |
|
|
2.80 |
|
Adjusted net interest margin ratio (FTE) (Non-GAAP) |
(G*) / (I) |
|
3.29 |
|
|
3.49 |
|
|
3.47 |
|
|
3.01 |
|
|
2.65 |
|
|
|
|
|
|
|
|
||||||||||
*Annualized |
||||||||||||||||
(FIBK-ER)
View source version on businesswire.com: https://www.businesswire.com/news/home/20230426005800/en/
Deputy Chief Financial Officer
(406) 255-5311
john.stewart@fib.com
www.FIBK.com
Source:
FAQ
What are First Interstate BancSystem's Q1 2023 earnings results?
How did First Interstate BancSystem perform compared to Q4 2022?
What is the net interest margin for First Interstate BancSystem in Q1 2023?
Did First Interstate BancSystem declare a dividend in Q1 2023?
What was the provision for credit losses for First Interstate BancSystem in Q1 2023?
