First Interstate BancSystem, Inc. Reports Fourth Quarter Earnings
For the year ended December 31, 2024, the Company reported net income of
HIGHLIGHTS
- We are pleased to announce the appointment of James A. Reuter as the Company’s President and Chief Executive Officer, effective November 1, 2024.
-
Net interest margin increased to
3.18% for the fourth quarter of 2024, a 17-basis point increase from the third quarter of 2024. Net interest margin, on a fully taxable equivalent (“FTE”) basis1, increased to3.20% for the fourth quarter of 2024, or a 16-basis point increase from the third quarter of 2024. -
Non-performing assets decreased
$33.3 million 18.6% , to$145.6 million $178.9 million $17.8 million 13.9% , from$127.8 million -
Criticized loans increased
$170.0 million $773.3 million $603.3 million $85.0 million $688.3 million -
For the fourth quarter of 2024 net charge-offs of
$55.2 million $49.3 million $5.9 million 0.13% of average loans. -
Other borrowed funds decreased
$512.5 million 24.6% , to$1,567.5 million $2,080.0 million $1,035.5 million $1.0 billion -
Total deposits increased by
$151.5 million $233.8 million $121.4 million -
Non-interest expense increased
$1.5 million $5.1 million $3.8 million $5.3 million -
Efficiency ratio of
60.2% for the fourth quarter of 2024 compared to61.8% for the third quarter of 2024. -
Capital ratios continued to improve during the fourth quarter of 2024, with common equity tier 1 capital ratio increasing
0.30% to12.16% , compared to the third quarter of 2024.
___________
1 Represents a Non-GAAP financial measure. See Non-GAAP Financial Measures included below for a reconciliation to this measure’s most directly comparable GAAP financial measure.
“We are pleased to see continued improvement in our core operating metrics. Net interest margin expanded for the third consecutive quarter, and the net interest margin, excluding purchase accounting, exceeded
DIVIDEND DECLARATION
On January 28, 2025, the Company’s board of directors declared a dividend of
NET INTEREST INCOME
Net interest income increased
-
Interest accretion attributable to the fair valuation of acquired loans from acquisitions contributed to net interest income during the fourth quarter of 2024, the third quarter of 2024, and the fourth quarter of 2023, in the amounts of
$8.6 million $4.4 million $5.4 million
The net interest margin ratio was
___________
2 Represents a Non-GAAP financial measure. See Non-GAAP Financial Measures included below for a reconciliation to this measure’s most directly comparable GAAP financial measure.
PROVISION FOR CREDIT LOSSES
During the fourth quarter of 2024, the Company recorded a provision for credit losses of
For the fourth quarter of 2024, net charge-offs were
The Company’s allowance for credit losses as a percentage of period-end loans held for investment was
NON-INTEREST INCOME
For the Quarter Ended |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(Dollars in millions) |
Dec 31,
|
|
Sep 30,
|
|
$ Change |
|
% Change |
|
Dec 31,
|
|
$ Change |
|
% Change |
|||||||||
Payment services revenues |
$ |
17.9 |
|
$ |
18.7 |
|
$ |
(0.8 |
) |
(4.3 |
)% |
|
$ |
18.4 |
|
$ |
(0.5 |
) |
(2.7 |
)% |
||
Mortgage banking revenues |
|
1.5 |
|
|
1.7 |
|
|
(0.2 |
) |
(11.8 |
) |
|
|
1.5 |
|
|
— |
|
NM |
|
||
Wealth management revenues |
|
10.6 |
|
|
9.6 |
|
|
1.0 |
|
10.4 |
|
|
|
8.8 |
|
|
1.8 |
|
20.5 |
|
||
Service charges on deposit accounts |
|
6.7 |
|
|
6.6 |
|
|
0.1 |
|
1.5 |
|
|
|
6.0 |
|
|
0.7 |
|
11.7 |
|
||
Other service charges, commissions, and fees |
|
2.5 |
|
|
2.2 |
|
|
0.3 |
|
13.6 |
|
|
|
2.5 |
|
|
— |
|
— |
|
||
Other income |
|
7.8 |
|
|
7.6 |
|
|
0.2 |
|
2.6 |
|
|
|
7.3 |
|
|
0.5 |
|
6.8 |
|
||
Total non-interest income |
$ |
47.0 |
|
$ |
46.4 |
|
$ |
0.6 |
|
1.3 |
% |
|
$ |
44.5 |
|
$ |
2.5 |
|
5.6 |
% |
||
Non-interest income was
NON-INTEREST EXPENSE
For the Quarter Ended |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(Dollars in millions) |
Dec 31,
|
|
Sep 30,
|
|
$ Change |
% Change |
|
Dec 31,
|
|
$ Change |
% Change |
|||||||||||
Salaries and wages |
$ |
68.5 |
|
$ |
70.9 |
|
$ |
(2.4 |
) |
(3.4 |
)% |
|
$ |
64.0 |
|
$ |
4.5 |
|
7.0 |
% |
||
Employee benefits |
|
20.5 |
|
|
19.7 |
|
|
0.8 |
|
4.1 |
|
|
|
13.5 |
|
|
7.0 |
|
51.9 |
|
||
Occupancy and equipment |
|
18.2 |
|
|
17.0 |
|
|
1.2 |
|
7.1 |
|
|
|
17.4 |
|
|
0.8 |
|
4.6 |
|
||
Other intangible amortization |
|
3.6 |
|
|
3.6 |
|
|
— |
|
— |
|
|
|
3.9 |
|
|
(0.3 |
) |
(7.7 |
) |
||
Other expenses |
|
50.0 |
|
|
48.2 |
|
|
1.8 |
|
3.7 |
|
|
|
67.0 |
|
|
(17.0 |
) |
(25.4 |
) |
||
Other real estate owned expense |
|
0.1 |
|
|
— |
|
|
0.1 |
|
— |
|
|
|
0.2 |
|
|
(0.1 |
) |
(50.0 |
) |
||
Total non-interest expense |
$ |
160.9 |
|
$ |
159.4 |
|
$ |
1.5 |
|
0.9 |
% |
|
$ |
166.0 |
|
$ |
(5.1 |
) |
(3.1 |
)% |
||
The Company’s non-interest expense was
Salary and wages expense decreased
Employee benefit expenses increased
Other expenses increased
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:
|
Dec 31,
|
Sep 30,
|
$ Change |
% Change |
Dec 31,
|
$ Change |
% Change |
||||||||||||||||||
Real Estate: |
|
|
|
|
|
|
|
||||||||||||||||||
Commercial |
|
9,263.2 |
|
$ |
9,219.3 |
|
$ |
43.9 |
|
0.5 |
% |
$ |
8,869.2 |
|
$ |
394.0 |
|
4.4 |
% |
||||||
Construction |
|
1,244.6 |
|
|
1,307.9 |
|
|
(63.3 |
) |
(4.8 |
) |
|
1,826.5 |
|
|
(581.9 |
) |
(31.9 |
) |
||||||
Residential |
|
2,191.6 |
|
|
2,217.8 |
|
|
(26.2 |
) |
(1.2 |
) |
|
2,244.3 |
|
|
(52.7 |
) |
(2.3 |
) |
||||||
Agricultural |
|
701.1 |
|
|
726.4 |
|
|
(25.3 |
) |
(3.5 |
) |
|
716.8 |
|
|
(15.7 |
) |
(2.2 |
) |
||||||
Total real estate |
|
13,400.5 |
|
|
13,471.4 |
|
|
(70.9 |
) |
(0.5 |
) |
|
13,656.8 |
|
|
(256.3 |
) |
(1.9 |
) |
||||||
Consumer: |
|
|
|
|
|
|
|
||||||||||||||||||
Indirect |
|
725.0 |
|
|
742.2 |
|
|
(17.2 |
) |
(2.3 |
) |
|
740.9 |
|
|
(15.9 |
) |
(2.1 |
) |
||||||
Direct and advance lines |
|
134.0 |
|
|
136.9 |
|
|
(2.9 |
) |
(2.1 |
) |
|
141.6 |
|
|
(7.6 |
) |
(5.4 |
) |
||||||
Credit card |
|
77.6 |
|
|
76.4 |
|
|
1.2 |
|
1.6 |
|
|
76.5 |
|
|
1.1 |
|
1.4 |
|
||||||
Total consumer |
|
936.6 |
|
|
955.5 |
|
|
(18.9 |
) |
(2.0 |
) |
|
959.0 |
|
|
(22.4 |
) |
(2.3 |
) |
||||||
Commercial |
|
2,829.4 |
|
|
2,919.7 |
|
|
(90.3 |
) |
(3.1 |
) |
|
2,906.8 |
|
|
(77.4 |
) |
(2.7 |
) |
||||||
Agricultural |
|
687.9 |
|
|
689.8 |
|
|
(1.9 |
) |
(0.3 |
) |
|
769.4 |
|
|
(81.5 |
) |
(10.6 |
) |
||||||
Other, including overdrafts |
|
1.6 |
|
|
2.5 |
|
|
(0.9 |
) |
(36.0 |
) |
|
0.1 |
|
|
1.5 |
|
NM |
|
||||||
Deferred loan fees and costs |
|
(11.1 |
) |
|
(11.8 |
) |
|
0.7 |
|
(5.9 |
) |
|
(12.5 |
) |
|
1.4 |
|
(11.2 |
) |
||||||
Loans held for investment, net of deferred loan fees and costs |
|
17,844.9 |
|
$ |
18,027.1 |
|
$ |
(182.2 |
) |
(1.0 |
)% |
$ |
18,279.6 |
|
$ |
(434.7 |
) |
(2.4 |
)% |
||||||
The ratio of loans held for investment to deposits was
Total deposits increased
Securities sold under repurchase agreements decreased
Other borrowed funds is composed of variable-rate, overnight and fixed-rate borrowings with remaining contractual tenors of up to one year through the Federal Home Loan Bank. Other borrowed funds decreased
The Company is considered to be “well-capitalized” as of December 31, 2024, having exceeded all regulatory capital adequacy requirements. During the fourth quarter of 2024, the Company paid regular common stock dividends of approximately
CREDIT QUALITY
As of December 31, 2024, non-performing assets decreased
Criticized loans increased
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), adjusts its GAAP net interest income to include fully taxable equivalent adjustments and further adjusts its net interest income on a fully taxable equivalent basis to exclude purchase accounting interest accretion. 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 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 existing, governmental regulations or in the way such regulations are interpreted or enforced;
- negative developments in the banking industry and increased regulatory scrutiny;
- 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, but not limited to, the Community Reinvestment Act and fair lending laws, the
USA PATRIOT ACT of 2001, the Office of Foreign Asset Control guidelines and requirements, the Bank Secrecy Act, and the related Financial Crimes Enforcement Network and Federal Financial Institutions Examination Council Guidelines and regulations; - federal deposit insurance increases;
- lending risks and risks associated with loan 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;
- exposure to losses in collateralized loan obligation securities;
-
changes to
United States trade policies, including the imposition of tariffs and retaliatory tariffs; - 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;
- inability to access funding or to monetize liquid assets;
- changes in interest rates;
- interest rate effect on the value of our investment securities;
- cybersecurity risks, including denial-of-service attacks, network intrusions, business e-mail compromise, and other malicious behavior 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 or otherwise have an adverse effect on us;
- the potential impairment of our goodwill and other intangible assets;
- our reliance on other companies that provide key components of our business infrastructure;
- events that may tarnish our reputation;
- mainstream and social media contagion;
- 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 internal control over financial reporting;
- our ability to implement technology-facilitated products and services or be successful in marketing these products and services to our clients;
- the development and use of artificial intelligence;
- risks related to acquisitions, mergers, strategic partnerships and other transactions;
- competition from new or existing financial institutions and non-banks;
- investing in technology;
- 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 in our certificate of incorporation and 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 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 Securities and Exchange Commission, or SEC, under the Securities Exchange Act of 1934, as amended, under the caption “Risk Factors.” Interested parties are urged to read in their entirety such risk factors prior to making any investment decision with respect to the Company. Forward-looking statements speak only as of the date they are made, and we do not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Fourth Quarter 2024 Conference Call for Investors
First Interstate BancSystem, Inc. will host a conference call to discuss the results for the fourth quarter of 2024 at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time) on Thursday, January 30, 2025. The conference call will be accessible by telephone and through the Internet. Participants may join the call by dialing 1-800-549-8228; the access code is 47891. To participate via the Internet, visit www.FIBK.com. The call will be recorded and made available for replay on January 30, 2025, after 1:00 p.m. Eastern Time (11:00 a.m. Mountain Time), through March 1, 2025, prior to 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time), by dialing 1-888-660-6264; the access code is 47891. The call will also be archived on our website, www.FIBK.com, for one year.
About First Interstate BancSystem, Inc.
First Interstate BancSystem, Inc. is a financial and bank holding company focused on community banking. Incorporated in 1971 and headquartered in
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) |
||||||||||||||||||||
|
Quarter Ended |
% Change |
||||||||||||||||||
(In millions, except % and per share data) |
Dec 31,
|
Sep 30,
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
4Q24 vs
|
4Q24 vs
|
|||||||||||||
Net interest income |
$ |
214.3 |
$ |
205.5 |
$ |
201.7 |
$ |
200.1 |
$ |
207.8 |
4.3 |
% |
3.1 |
% |
||||||
Net interest income on a fully-taxable equivalent ("FTE") basis |
|
215.9 |
|
207.1 |
|
203.4 |
|
201.8 |
|
209.5 |
4.2 |
|
3.1 |
|
||||||
Provision for credit losses |
|
33.7 |
|
19.8 |
|
9.0 |
|
5.3 |
|
5.4 |
70.2 |
|
NM |
|
||||||
Non-interest income: |
|
|
|
|
|
|
|
|||||||||||||
Payment services revenues |
|
17.9 |
|
18.7 |
|
18.6 |
|
18.4 |
|
18.4 |
(4.3 |
) |
(2.7 |
) |
||||||
Mortgage banking revenues |
|
1.5 |
|
1.7 |
|
1.7 |
|
1.7 |
|
1.5 |
(11.8 |
) |
NM |
|
||||||
Wealth management revenues |
|
10.6 |
|
9.6 |
|
9.4 |
|
9.2 |
|
8.8 |
10.4 |
|
20.5 |
|
||||||
Service charges on deposit accounts |
|
6.7 |
|
6.6 |
|
6.4 |
|
6.0 |
|
6.0 |
1.5 |
|
11.7 |
|
||||||
Other service charges, commissions, and fees |
|
2.5 |
|
2.2 |
|
2.1 |
|
2.2 |
|
2.5 |
13.6 |
|
— |
|
||||||
Total fee-based revenues |
|
39.2 |
|
38.8 |
|
38.2 |
|
37.5 |
|
37.2 |
1.0 |
|
5.4 |
|
||||||
Other income |
|
7.8 |
|
7.6 |
|
4.4 |
|
4.6 |
|
7.3 |
2.6 |
|
6.8 |
|
||||||
Total non-interest income |
|
47.0 |
|
46.4 |
|
42.6 |
|
42.1 |
|
44.5 |
1.3 |
|
5.6 |
|
||||||
Non-interest expense: |
|
|
|
|
|
|
|
|||||||||||||
Salaries and wages |
|
68.5 |
|
70.9 |
|
66.3 |
|
65.2 |
|
64.0 |
(3.4 |
) |
7.0 |
|
||||||
Employee benefits |
|
20.5 |
|
19.7 |
|
16.9 |
|
19.3 |
|
13.5 |
4.1 |
|
51.9 |
|
||||||
Occupancy and equipment |
|
18.2 |
|
17.0 |
|
16.9 |
|
17.3 |
|
17.4 |
7.1 |
|
4.6 |
|
||||||
Other intangible amortization |
|
3.6 |
|
3.6 |
|
3.7 |
|
3.7 |
|
3.9 |
— |
|
(7.7 |
) |
||||||
Other expenses |
|
50.0 |
|
48.2 |
|
51.1 |
|
52.7 |
|
67.0 |
3.7 |
|
(25.4 |
) |
||||||
Other real estate owned expense |
|
0.1 |
|
— |
|
2.0 |
|
2.0 |
|
0.2 |
— |
|
(50.0 |
) |
||||||
Total non-interest expense |
|
160.9 |
|
159.4 |
|
156.9 |
|
160.2 |
|
166.0 |
0.9 |
|
(3.1 |
) |
||||||
Income before income tax |
|
66.7 |
|
72.7 |
|
78.4 |
|
76.7 |
|
80.9 |
(8.3 |
) |
(17.6 |
) |
||||||
Provision for income tax |
|
14.6 |
|
17.2 |
|
18.4 |
|
18.3 |
|
19.4 |
(15.1 |
) |
(24.7 |
) |
||||||
Net income |
$ |
52.1 |
$ |
55.5 |
$ |
60.0 |
$ |
58.4 |
$ |
61.5 |
(6.1 |
)% |
(15.3 |
)% |
||||||
|
|
|
|
|
|
|
|
|||||||||||||
Weighted-average basic shares outstanding |
|
103,083 |
|
102,971 |
|
102,937 |
|
102,844 |
|
103,629 |
0.1 |
% |
(0.5 |
)% |
||||||
Weighted-average diluted shares outstanding |
|
103,399 |
|
103,234 |
|
103,093 |
|
103,040 |
|
103,651 |
0.2 |
|
(0.2 |
) |
||||||
Earnings per share - basic |
$ |
0.51 |
$ |
0.54 |
$ |
0.58 |
$ |
0.57 |
$ |
0.59 |
(5.6 |
) |
(13.6 |
) |
||||||
Earnings per share - diluted |
|
0.50 |
|
0.54 |
|
0.58 |
|
0.57 |
|
0.59 |
(7.4 |
) |
(15.3 |
) |
||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
NM - not meaningful |
|
|
|
|
|
|
|
|||||||||||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) |
|||||||||
|
Year Ended December 31, |
|
% Change |
||||||
(In millions, except % and per share data) |
2024 |
|
2023 |
|
2024 vs
|
||||
Net interest income |
$ |
821.6 |
|
$ |
878.8 |
|
|
(6.5 |
) |
Net interest income on a FTE basis |
|
828.2 |
|
|
885.8 |
|
|
(6.5 |
) |
Provision for credit losses |
|
67.8 |
|
|
32.2 |
|
|
110.6 |
|
Non-interest income: |
|
|
|
|
|
||||
Payment services revenues |
|
73.6 |
|
|
76.4 |
|
|
(3.7 |
) |
Mortgage banking revenues |
|
6.6 |
|
|
8.4 |
|
|
(21.4 |
) |
Wealth management revenues |
|
38.8 |
|
|
35.3 |
|
|
9.9 |
|
Service charges on deposit accounts |
|
25.7 |
|
|
23.0 |
|
|
11.7 |
|
Other service charges, commissions, and fees |
|
9.0 |
|
|
9.5 |
|
|
(5.3 |
) |
Total fee-based revenues |
|
153.7 |
|
|
152.6 |
|
|
0.7 |
|
Investment securities gain |
|
— |
|
|
(23.5 |
) |
|
NM |
|
Other income |
|
24.4 |
|
|
17.9 |
|
|
36.3 |
|
Total non-interest income |
|
178.1 |
|
|
147.0 |
|
|
21.2 |
|
Non-interest expense: |
|
|
|
|
|
||||
Salaries and wages |
|
270.9 |
|
|
263.1 |
|
|
3.0 |
|
Employee benefits |
|
76.4 |
|
|
75.3 |
|
|
1.5 |
|
Occupancy and equipment |
|
69.4 |
|
|
70.1 |
|
|
(1.0 |
) |
Other intangible amortization |
|
14.6 |
|
|
15.7 |
|
|
(7.0 |
) |
Other expenses |
|
202.0 |
|
|
231.1 |
|
|
(12.6 |
) |
Other real estate owned expense |
|
4.1 |
|
|
1.5 |
|
|
NM |
|
Total non-interest expense |
|
637.4 |
|
|
656.8 |
|
|
(3.0 |
) |
Income before income tax |
|
294.5 |
|
|
336.8 |
|
|
(12.6 |
) |
Provision for income tax |
|
68.5 |
|
|
79.3 |
|
|
(13.6 |
) |
Net income |
$ |
226.0 |
|
$ |
257.5 |
|
|
(12.2 |
) |
|
|
|
|
|
|
||||
Weighted-average basic shares outstanding |
|
102,978 |
|
|
103,752 |
|
|
(0.7 |
) |
Weighted-average diluted shares outstanding |
|
103,191 |
|
|
103,780 |
|
|
(0.6 |
) |
Earnings per share - basic |
$ |
2.19 |
|
$ |
2.48 |
|
|
(11.7 |
) |
Earnings per share - diluted |
|
2.19 |
|
|
2.48 |
|
|
(11.7 |
) |
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
NM - not meaningful |
|
|
|
|
|
||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) |
|||||||||||||||||||||||||
|
|
|
|
% Change |
|||||||||||||||||||||
(In millions, except % and per share data) |
Dec 31,
|
Sep 30,
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
4Q24 vs
|
4Q24 vs
|
||||||||||||||||||
Assets: |
|
|
|
|
|
|
|
||||||||||||||||||
Cash and due from banks |
$ |
378.0 |
|
$ |
438.9 |
|
$ |
390.2 |
|
$ |
315.8 |
|
$ |
378.2 |
|
(13.9 |
)% |
(0.1 |
)% |
||||||
Interest-bearing deposits in banks |
|
518.5 |
|
|
259.6 |
|
|
568.2 |
|
|
319.1 |
|
|
199.7 |
|
99.7 |
|
159.6 |
|
||||||
Federal funds sold |
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
— |
|
— |
|
||||||
Cash and cash equivalents |
|
896.6 |
|
|
698.6 |
|
|
958.5 |
|
|
635.0 |
|
|
578.0 |
|
28.3 |
|
55.1 |
|
||||||
Investment securities, net |
|
7,744.6 |
|
|
8,275.6 |
|
|
8,401.6 |
|
|
8,626.1 |
|
|
9,049.4 |
|
(6.4 |
) |
(14.4 |
) |
||||||
Investment in Federal Home Loan Bank and Federal Reserve Bank stock |
|
177.4 |
|
|
155.5 |
|
|
182.3 |
|
|
178.4 |
|
|
223.2 |
|
14.1 |
|
(20.5 |
) |
||||||
Loans held for sale, at fair value |
|
0.9 |
|
|
20.9 |
|
|
22.3 |
|
|
22.7 |
|
|
47.4 |
|
(95.7 |
) |
(98.1 |
) |
||||||
Loans held for investment |
|
17,844.9 |
|
|
18,027.1 |
|
|
18,235.0 |
|
|
18,202.8 |
|
|
18,279.6 |
|
(1.0 |
) |
(2.4 |
) |
||||||
Allowance for credit losses |
|
(204.1 |
) |
|
(225.4 |
) |
|
(232.8 |
) |
|
(227.7 |
) |
|
(227.7 |
) |
(9.4 |
) |
(10.4 |
) |
||||||
Net loans held for investment |
|
17,640.8 |
|
|
17,801.7 |
|
|
18,002.2 |
|
|
17,975.1 |
|
|
18,051.9 |
|
(0.9 |
) |
(2.3 |
) |
||||||
Goodwill and intangible assets (excluding mortgage servicing rights) |
|
1,195.7 |
|
|
1,199.3 |
|
|
1,202.9 |
|
|
1,206.6 |
|
|
1,210.3 |
|
(0.3 |
) |
(1.2 |
) |
||||||
Company owned life insurance |
|
513.0 |
|
|
511.0 |
|
|
507.6 |
|
|
504.7 |
|
|
502.4 |
|
0.4 |
|
2.1 |
|
||||||
Premises and equipment |
|
427.2 |
|
|
432.7 |
|
|
436.5 |
|
|
439.9 |
|
|
444.3 |
|
(1.3 |
) |
(3.8 |
) |
||||||
Other real estate owned |
|
4.3 |
|
|
4.4 |
|
|
6.7 |
|
|
14.4 |
|
|
16.5 |
|
(2.3 |
) |
(73.9 |
) |
||||||
Mortgage servicing rights |
|
25.7 |
|
|
26.3 |
|
|
27.0 |
|
|
27.6 |
|
|
28.3 |
|
(2.3 |
) |
(9.2 |
) |
||||||
Other assets |
|
511.2 |
|
|
469.5 |
|
|
541.9 |
|
|
514.3 |
|
|
519.5 |
|
8.9 |
|
(1.6 |
) |
||||||
Total assets |
$ |
29,137.4 |
|
$ |
29,595.5 |
|
$ |
30,289.5 |
|
$ |
30,144.8 |
|
$ |
30,671.2 |
|
(1.5 |
)% |
(5.0 |
)% |
||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Liabilities and stockholders' equity: |
|
|
|
|
|
|
|
||||||||||||||||||
Deposits |
$ |
23,015.6 |
|
$ |
22,864.1 |
|
$ |
22,870.7 |
|
$ |
22,810.0 |
|
$ |
23,323.1 |
|
0.7 |
% |
(1.3 |
)% |
||||||
Securities sold under repurchase agreements |
|
523.9 |
|
|
557.2 |
|
|
741.8 |
|
|
794.2 |
|
|
782.7 |
|
(6.0 |
) |
(33.1 |
) |
||||||
Long-term debt |
|
132.2 |
|
|
137.3 |
|
|
383.4 |
|
|
370.8 |
|
|
120.8 |
|
(3.7 |
) |
9.4 |
|
||||||
Other borrowed funds |
|
1,567.5 |
|
|
2,080.0 |
|
|
2,430.0 |
|
|
2,342.0 |
|
|
2,603.0 |
|
(24.6 |
) |
(39.8 |
) |
||||||
Subordinated debentures held by subsidiary trusts |
|
163.1 |
|
|
163.1 |
|
|
163.1 |
|
|
163.1 |
|
|
163.1 |
|
— |
|
— |
|
||||||
Other liabilities |
|
431.1 |
|
|
428.0 |
|
|
475.2 |
|
|
455.0 |
|
|
451.0 |
|
0.7 |
|
(4.4 |
) |
||||||
Total liabilities |
|
25,833.4 |
|
|
26,229.7 |
|
|
27,064.2 |
|
|
26,935.1 |
|
|
27,443.7 |
|
(1.5 |
) |
(5.9 |
) |
||||||
Stockholders' equity: |
|
|
|
|
|
|
|
||||||||||||||||||
Common stock |
|
2,459.5 |
|
|
2,457.4 |
|
|
2,453.9 |
|
|
2,450.7 |
|
|
2,448.9 |
|
0.1 |
|
0.4 |
|
||||||
Retained earnings |
|
1,166.4 |
|
|
1,163.3 |
|
|
1,156.9 |
|
|
1,145.9 |
|
|
1,135.1 |
|
0.3 |
|
2.8 |
|
||||||
Accumulated other comprehensive loss |
|
(321.9 |
) |
|
(254.9 |
) |
|
(385.5 |
) |
|
(386.9 |
) |
|
(356.5 |
) |
26.3 |
|
(9.7 |
) |
||||||
Total stockholders' equity |
|
3,304.0 |
|
|
3,365.8 |
|
|
3,225.3 |
|
|
3,209.7 |
|
|
3,227.5 |
|
(1.8 |
) |
2.4 |
|
||||||
Total liabilities and stockholders' equity |
$ |
29,137.4 |
|
$ |
29,595.5 |
|
$ |
30,289.5 |
|
$ |
30,144.8 |
|
$ |
30,671.2 |
|
(1.5 |
)% |
(5.0 |
)% |
||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Common shares outstanding at period end |
|
104,586 |
|
|
104,530 |
|
|
104,561 |
|
|
104,572 |
|
|
103,942 |
|
0.1 |
% |
0.6 |
% |
||||||
Book value per common share at period end |
$ |
31.59 |
|
$ |
32.20 |
|
$ |
30.85 |
|
$ |
30.69 |
|
$ |
31.05 |
|
(1.9 |
) |
1.7 |
|
||||||
Tangible book value per common share at period end** |
|
20.16 |
|
|
20.73 |
|
|
19.34 |
|
|
19.16 |
|
|
19.41 |
|
(2.7 |
) |
3.9 |
|
||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
**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. |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Loans and Deposits (Unaudited) |
|||||||||||||||||||||||||
|
|
|
|
% Change |
|||||||||||||||||||||
(In millions, except %) |
Dec 31,
|
Sep 30,
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
4Q24 vs
|
4Q24 vs
|
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Loans held for investment: |
|
|
|
|
|
|
|
||||||||||||||||||
Real Estate: |
|
|
|
|
|
|
|
||||||||||||||||||
Commercial |
$ |
9,263.2 |
|
$ |
9,219.3 |
|
$ |
9,054.5 |
|
$ |
9,060.4 |
|
$ |
8,869.2 |
|
0.5 |
% |
4.4 |
% |
||||||
Construction |
|
1,244.6 |
|
|
1,307.9 |
|
|
1,519.9 |
|
|
1,609.2 |
|
|
1,826.5 |
|
(4.8 |
) |
(31.9 |
) |
||||||
Residential |
|
2,191.6 |
|
|
2,217.8 |
|
|
2,246.4 |
|
|
2,258.4 |
|
|
2,244.3 |
|
(1.2 |
) |
(2.3 |
) |
||||||
Agricultural |
|
701.1 |
|
|
726.4 |
|
|
723.5 |
|
|
719.7 |
|
|
716.8 |
|
(3.5 |
) |
(2.2 |
) |
||||||
Total real estate |
|
13,400.5 |
|
|
13,471.4 |
|
|
13,544.3 |
|
|
13,647.7 |
|
|
13,656.8 |
|
(0.5 |
) |
(1.9 |
) |
||||||
Consumer: |
|
|
|
|
|
|
|
||||||||||||||||||
Indirect |
|
725.0 |
|
|
742.2 |
|
|
733.7 |
|
|
739.9 |
|
|
740.9 |
|
(2.3 |
) |
(2.1 |
) |
||||||
Direct |
|
134.0 |
|
|
136.9 |
|
|
139.0 |
|
|
136.7 |
|
|
141.6 |
|
(2.1 |
) |
(5.4 |
) |
||||||
Credit card |
|
77.6 |
|
|
76.4 |
|
|
76.1 |
|
|
72.6 |
|
|
76.5 |
|
1.6 |
|
1.4 |
|
||||||
Total consumer |
|
936.6 |
|
|
955.5 |
|
|
948.8 |
|
|
949.2 |
|
|
959.0 |
|
(2.0 |
) |
(2.3 |
) |
||||||
Commercial |
|
2,829.4 |
|
|
2,919.7 |
|
|
3,052.9 |
|
|
2,922.2 |
|
|
2,906.8 |
|
(3.1 |
) |
(2.7 |
) |
||||||
Agricultural |
|
687.9 |
|
|
689.8 |
|
|
698.2 |
|
|
696.0 |
|
|
769.4 |
|
(0.3 |
) |
(10.6 |
) |
||||||
Other |
|
1.6 |
|
|
2.5 |
|
|
3.1 |
|
|
0.2 |
|
|
0.1 |
|
(36.0 |
) |
NM |
|
||||||
Deferred loan fees and costs |
|
(11.1 |
) |
|
(11.8 |
) |
|
(12.3 |
) |
|
(12.5 |
) |
|
(12.5 |
) |
(5.9 |
) |
(11.2 |
) |
||||||
Loans held for investment |
$ |
17,844.9 |
|
$ |
18,027.1 |
|
$ |
18,235.0 |
|
$ |
18,202.8 |
|
$ |
18,279.6 |
|
(1.0 |
)% |
(2.4 |
)% |
||||||
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits: |
|
|
|
|
|
|
|
||||||||||||||||||
Non-interest-bearing |
$ |
5,797.6 |
|
$ |
5,919.0 |
|
$ |
6,174.0 |
|
$ |
5,900.3 |
|
$ |
6,029.6 |
|
(2.1 |
)% |
(3.8 |
)% |
||||||
Interest-bearing: |
|
|
|
|
|
|
|
||||||||||||||||||
Demand |
|
6,495.2 |
|
|
6,261.4 |
|
|
6,122.3 |
|
|
6,103.6 |
|
|
6,507.8 |
|
3.7 |
|
(0.2 |
) |
||||||
Savings |
|
7,832.3 |
|
|
7,805.5 |
|
|
7,733.6 |
|
|
7,872.2 |
|
|
7,775.8 |
|
0.3 |
|
0.7 |
|
||||||
Time, |
|
825.0 |
|
|
818.6 |
|
|
786.1 |
|
|
819.3 |
|
|
811.6 |
|
0.8 |
|
1.7 |
|
||||||
Time, other |
|
2,065.5 |
|
|
2,059.6 |
|
|
2,054.7 |
|
|
2,114.6 |
|
|
2,198.3 |
|
0.3 |
|
(6.0 |
) |
||||||
Total interest-bearing |
|
17,218.0 |
|
|
16,945.1 |
|
|
16,696.7 |
|
|
16,909.7 |
|
|
17,293.5 |
|
1.6 |
|
(0.4 |
) |
||||||
Total deposits |
$ |
23,015.6 |
|
$ |
22,864.1 |
|
$ |
22,870.7 |
|
$ |
22,810.0 |
|
$ |
23,323.1 |
|
0.7 |
% |
(1.3 |
)% |
||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Total core deposits (1) |
$ |
22,190.6 |
|
$ |
22,045.5 |
|
$ |
22,084.6 |
|
$ |
21,990.7 |
|
$ |
22,511.5 |
|
0.7 |
% |
(1.4 |
)% |
||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
(1) Core deposits are defined as total deposits less time deposits, |
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Credit Quality (Unaudited) |
|||||||||||||||||||||||||
|
|
|
|
% Change |
|||||||||||||||||||||
(In millions, except %) |
Dec 31,
|
Sep 30,
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
4Q24 vs 3Q24 |
4Q24 vs
|
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Allowance for Credit Losses: |
|
|
|
|
|
|
|
||||||||||||||||||
Allowance for credit losses |
$ |
204.1 |
|
$ |
225.4 |
|
$ |
232.8 |
|
$ |
227.7 |
|
$ |
227.7 |
|
(9.4 |
)% |
(10.4 |
)% |
||||||
As a percentage of loans held for investment |
|
1.14 |
% |
|
1.25 |
% |
|
1.28 |
% |
|
1.25 |
% |
|
1.25 |
% |
|
|
||||||||
As a percentage of non-accrual loans |
|
147.58 |
|
|
130.52 |
|
|
140.58 |
|
|
132.38 |
|
|
214.00 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Net loan charge-offs during quarter |
$ |
55.2 |
|
$ |
27.4 |
|
$ |
13.5 |
|
$ |
8.4 |
|
$ |
4.8 |
|
101.5 |
% |
NM |
|
||||||
Annualized as a percentage of average loans |
|
1.22 |
% |
|
0.60 |
% |
|
0.30 |
% |
|
0.18 |
% |
|
0.10 |
% |
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-Performing Assets: |
|
|
|
|
|
|
|
||||||||||||||||||
Non-accrual loans |
$ |
138.3 |
|
$ |
172.7 |
|
$ |
165.6 |
|
$ |
172.0 |
|
$ |
106.4 |
|
(19.9 |
)% |
30.0 |
% |
||||||
Accruing loans past due 90 days or more |
|
3.0 |
|
|
1.8 |
|
|
2.6 |
|
|
3.0 |
|
|
4.9 |
|
66.7 |
|
(38.8 |
) |
||||||
Total non-performing loans |
|
141.3 |
|
|
174.5 |
|
|
168.2 |
|
|
175.0 |
|
|
111.3 |
|
(19.0 |
) |
27.0 |
|
||||||
Other real estate owned |
|
4.3 |
|
|
4.4 |
|
|
6.7 |
|
|
14.4 |
|
|
16.5 |
|
(2.3 |
) |
(73.9 |
) |
||||||
Total non-performing assets |
$ |
145.6 |
|
$ |
178.9 |
|
$ |
174.9 |
|
$ |
189.4 |
|
$ |
127.8 |
|
(18.6 |
)% |
13.9 |
% |
||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-performing assets as a percentage of: |
|
|
|
|
|
|
|
||||||||||||||||||
Loans held for investment and OREO |
|
0.82 |
% |
|
0.99 |
% |
|
0.96 |
% |
|
1.04 |
% |
|
0.70 |
% |
|
|
||||||||
Total assets |
|
0.50 |
|
|
0.60 |
|
|
0.58 |
|
|
0.63 |
|
|
0.42 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-accrual loans to loans held for investment |
|
0.78 |
|
|
0.96 |
|
|
0.91 |
|
|
0.94 |
|
|
0.58 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Accruing Loans 30-89 Days Past Due |
$ |
63.5 |
|
$ |
40.7 |
|
$ |
46.4 |
|
$ |
62.8 |
|
$ |
67.3 |
|
56.0 |
% |
(5.6 |
)% |
||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Criticized Loans: |
|
|
|
|
|
|
|
||||||||||||||||||
Special Mention |
$ |
316.4 |
|
$ |
188.9 |
|
$ |
162.7 |
|
$ |
160.1 |
|
$ |
210.5 |
|
67.5 |
% |
50.3 |
% |
||||||
Substandard |
|
434.8 |
|
|
365.9 |
|
|
409.3 |
|
|
405.8 |
|
|
457.1 |
|
18.8 |
|
(4.9 |
) |
||||||
Doubtful |
|
22.1 |
|
|
48.5 |
|
|
46.0 |
|
|
64.1 |
|
|
20.7 |
|
(54.4 |
) |
6.8 |
|
||||||
Total |
$ |
773.3 |
|
$ |
603.3 |
|
$ |
618.0 |
|
$ |
630.0 |
|
$ |
688.3 |
|
28.2 |
% |
12.3 |
% |
||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
NM - not meaningful |
|
|
|
|
|
|
|
||||||||||||||||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Selected Ratios - Annualized (Unaudited) |
|||||||||||||||||||
|
At or for the Quarter ended: |
||||||||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
||||||||||
Annualized Financial Ratios (GAAP) |
|||||||||||||||||||
Return on average assets |
|
0.70 |
% |
|
|
0.74 |
% |
|
|
0.80 |
% |
|
|
0.77 |
% |
|
|
0.80 |
% |
Return on average common stockholders' equity |
|
6.22 |
|
|
|
6.68 |
|
|
|
7.55 |
|
|
|
7.28 |
|
|
|
7.77 |
|
Yield on average earning assets |
|
4.86 |
|
|
|
4.83 |
|
|
|
4.80 |
|
|
|
4.74 |
|
|
|
4.69 |
|
Cost of average interest-bearing liabilities |
|
2.23 |
|
|
|
2.41 |
|
|
|
2.39 |
|
|
|
2.39 |
|
|
|
2.24 |
|
Interest rate spread |
|
2.63 |
|
|
|
2.42 |
|
|
|
2.41 |
|
|
|
2.35 |
|
|
|
2.45 |
|
Efficiency ratio |
|
60.20 |
|
|
|
61.85 |
|
|
|
62.71 |
|
|
|
64.62 |
|
|
|
64.25 |
|
Loans held for investment to deposit ratio |
|
77.53 |
|
|
|
78.84 |
|
|
|
79.73 |
|
|
|
79.80 |
|
|
|
78.38 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized Financial Ratios - Operating** (Non-GAAP) |
|||||||||||||||||||
Net FTE interest margin ratio |
|
3.20 |
% |
|
|
3.04 |
% |
|
|
3.00 |
% |
|
|
2.93 |
% |
|
|
3.01 |
% |
Tangible book value per common share |
$ |
20.16 |
|
|
$ |
20.73 |
|
|
$ |
19.34 |
|
|
$ |
19.16 |
|
|
$ |
19.41 |
|
Tangible common stockholders' equity to tangible assets |
|
7.55 |
% |
|
|
7.63 |
% |
|
|
6.95 |
% |
|
|
6.92 |
% |
|
|
6.85 |
% |
Return on average tangible common stockholders' equity |
|
9.71 |
|
|
|
10.48 |
|
|
|
12.12 |
|
|
|
11.63 |
|
|
|
12.65 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Capital Ratios |
|||||||||||||||||||
Total risk-based capital to total risk-weighted assets |
|
14.38 |
% |
* |
|
14.11 |
% |
|
|
13.80 |
% |
|
|
13.64 |
% |
|
|
13.28 |
% |
Tier 1 risk-based capital to total risk-weighted assets |
|
12.16 |
|
* |
|
11.83 |
|
|
|
11.53 |
|
|
|
11.37 |
|
|
|
11.08 |
|
Tier 1 common capital to total risk-weighted assets |
|
12.16 |
|
* |
|
11.83 |
|
|
|
11.53 |
|
|
|
11.37 |
|
|
|
11.08 |
|
Leverage Ratio |
|
8.71 |
|
* |
|
8.57 |
|
|
|
8.44 |
|
|
|
8.28 |
|
|
|
8.22 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
*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 United States Congress to provide relief for the economy and financial institutions in |
|||||||||||||||||||
**Non-GAAP financial measures - see Non-GAAP Financial Measures included herein for a reconciliation of net interest margin to net FTE interest margin, 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). |
|||||||||||||||||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Selected Ratios - Annualized (Unaudited) |
|||||
|
At or for the Year ended: |
||||
|
Dec 31,
|
|
Dec 31,
|
||
Financial Ratios (GAAP) |
|||||
Return on average assets |
0.75 |
% |
|
0.83 |
% |
Return on average common stockholders' equity |
6.92 |
|
|
8.17 |
|
Yield on average earning assets |
4.81 |
|
|
4.57 |
|
Cost of average interest-bearing liabilities |
2.35 |
|
|
1.91 |
|
Interest rate spread |
2.46 |
|
|
2.66 |
|
Efficiency ratio |
62.30 |
|
|
62.50 |
|
|
|
|
|
||
Financial Ratios - Operating** (Non-GAAP) |
|||||
Net FTE interest margin ratio |
3.04 |
|
|
3.14 |
|
Return on average tangible common stockholders' equity |
10.95 |
|
|
13.32 |
|
|
|
|
|
||
|
|
|
|
||
**Non-GAAP financial measures - see Non-GAAP Financial Measures included herein for a reconciliation of net interest margin to net FTE interest margin and return on average common stockholders’ equity (GAAP) to return on average tangible common stockholders’ equity (non-GAAP). |
|||||
|
|
|
|
||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Average Balance Sheets (Unaudited) |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||||||
|
December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
||||||||||||||||||||||||||
(In millions, except %) |
Average Balance |
Interest(2) |
Average Rate |
Average Balance |
Interest(2) |
Average Rate |
Average Balance |
Interest(2) |
Average Rate |
||||||||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Loans (1) |
$ |
17,977.7 |
$ |
259.9 |
|
5.75 |
% |
$ |
18,209.1 |
$ |
260.3 |
|
5.69 |
% |
$ |
18,255.9 |
$ |
254.1 |
|
5.52 |
% |
||||||||
Investment securities |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Taxable |
|
7,804.1 |
|
56.0 |
|
2.85 |
|
|
8,209.7 |
|
60.7 |
|
2.94 |
|
|
8,710.1 |
|
64.8 |
|
2.95 |
|
||||||||
Tax-exempt |
|
183.8 |
|
0.8 |
|
1.73 |
|
|
185.3 |
|
0.9 |
|
1.93 |
|
|
190.0 |
|
0.9 |
|
1.88 |
|
||||||||
Investment in FHLB and FRB stock |
|
155.7 |
|
2.4 |
|
6.13 |
|
|
176.0 |
|
2.8 |
|
6.33 |
|
|
192.1 |
|
3.1 |
|
6.40 |
|
||||||||
Interest-bearing deposits in banks |
|
690.2 |
|
8.3 |
|
4.78 |
|
|
353.1 |
|
4.9 |
|
5.52 |
|
|
221.0 |
|
3.1 |
|
5.57 |
|
||||||||
Federal funds sold |
|
0.1 |
|
— |
|
— |
|
|
0.1 |
|
— |
|
— |
|
|
0.3 |
|
— |
|
— |
|
||||||||
Total interest-earning assets |
$ |
26,811.6 |
$ |
327.4 |
|
4.86 |
% |
$ |
27,133.3 |
$ |
329.6 |
|
4.83 |
% |
$ |
27,569.4 |
$ |
326.0 |
|
4.69 |
% |
||||||||
Non-interest-earning assets |
|
2,807.3 |
|
|
|
2,813.6 |
|
|
|
2,938.3 |
|
|
|||||||||||||||||
Total assets |
$ |
29,618.9 |
|
|
$ |
29,946.9 |
|
|
$ |
30,507.7 |
|
|
|||||||||||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Demand deposits |
$ |
6,449.7 |
$ |
15.9 |
|
0.98 |
% |
$ |
6,143.9 |
$ |
15.1 |
|
0.98 |
% |
$ |
6,469.1 |
$ |
15.3 |
|
0.94 |
% |
||||||||
Savings deposits |
|
7,833.6 |
|
39.1 |
|
1.99 |
|
|
7,763.4 |
|
42.2 |
|
2.16 |
|
|
7,769.3 |
|
37.4 |
|
1.91 |
|
||||||||
Time deposits |
|
2,877.8 |
|
26.7 |
|
3.69 |
|
|
2,863.1 |
|
26.9 |
|
3.74 |
|
|
3,179.4 |
|
27.2 |
|
3.39 |
|
||||||||
Repurchase agreements |
|
529.4 |
|
1.1 |
|
0.83 |
|
|
643.9 |
|
1.4 |
|
0.86 |
|
|
842.2 |
|
2.1 |
|
0.99 |
|
||||||||
Other borrowed funds |
|
1,942.6 |
|
24.0 |
|
4.91 |
|
|
2,526.6 |
|
32.0 |
|
5.04 |
|
|
2,087.6 |
|
29.7 |
|
5.64 |
|
||||||||
Long-term debt |
|
135.0 |
|
1.5 |
|
4.42 |
|
|
147.2 |
|
1.6 |
|
4.32 |
|
|
120.8 |
|
1.4 |
|
4.60 |
|
||||||||
Subordinated debentures held by subsidiary trusts |
|
163.1 |
|
3.2 |
|
7.81 |
|
|
163.1 |
|
3.3 |
|
8.05 |
|
|
163.1 |
|
3.4 |
|
8.27 |
|
||||||||
Total interest-bearing liabilities |
$ |
19,931.2 |
$ |
111.5 |
|
2.23 |
% |
$ |
20,251.2 |
$ |
122.5 |
|
2.41 |
% |
$ |
20,631.5 |
$ |
116.5 |
|
2.24 |
% |
||||||||
Non-interest-bearing deposits |
|
5,899.8 |
|
|
|
5,927.2 |
|
|
|
6,222.1 |
|
|
|||||||||||||||||
Other non-interest-bearing liabilities |
|
455.8 |
|
|
|
461.4 |
|
|
|
513.8 |
|
|
|||||||||||||||||
Stockholders’ equity |
|
3,332.1 |
|
|
|
3,307.1 |
|
|
|
3,140.3 |
|
|
|||||||||||||||||
Total liabilities and stockholders’ equity |
$ |
29,618.9 |
|
|
$ |
29,946.9 |
|
|
$ |
30,507.7 |
|
|
|||||||||||||||||
Net FTE interest income (non-GAAP)(3) |
|
$ |
215.9 |
|
|
|
$ |
207.1 |
|
|
|
$ |
209.5 |
|
|
||||||||||||||
Less FTE adjustments (2) |
|
|
(1.6 |
) |
|
|
|
(1.6 |
) |
|
|
|
(1.7 |
) |
|
||||||||||||||
Net interest income from consolidated statements of income |
|
$ |
214.3 |
|
|
|
$ |
205.5 |
|
|
|
$ |
207.8 |
|
|
||||||||||||||
Interest rate spread |
|
|
2.63 |
% |
|
|
2.42 |
% |
|
|
2.45 |
% |
|||||||||||||||||
Net interest margin |
|
|
3.18 |
|
|
|
3.01 |
|
|
|
2.99 |
|
|||||||||||||||||
Net FTE interest margin (non-GAAP)(3) |
|
|
3.20 |
|
|
|
3.04 |
|
|
|
3.01 |
|
|||||||||||||||||
Cost of funds, including non-interest-bearing demand deposits (4) |
|
|
1.72 |
|
|
|
1.86 |
|
|
|
1.72 |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
(1) Average loan balances include loans held for sale and loans held for investment, net of deferred fees and costs, which include non-accrual loans. Interest income includes amortization of deferred loan fees net of deferred loan costs, which is not material. |
|||||||||||||||||||||||||||||
(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 an FTE basis utilizing a |
|||||||||||||||||||||||||||||
(3) Non-GAAP financial measure - see Non-GAAP Financial Measures included herein for a reconciliation to GAAP measures. |
|||||||||||||||||||||||||||||
(4) Calculated by dividing total annualized interest on interest-bearing liabilities by the sum of total interest-bearing liabilities plus non-interest-bearing deposits. |
|||||||||||||||||||||||||||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Average Balance Sheets (Unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||
|
Year Ended December 31, |
||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||
(In millions, except %) |
Average Balance |
Interest(2) |
Average Rate |
Average Balance |
Interest(2) |
Average Rate |
|||||||||||||
Interest earning assets: |
|
|
|
|
|
|
|||||||||||||
Loans (1) |
$ |
18,182.0 |
$ |
1,028.2 |
|
5.66 |
% |
$ |
18,299.6 |
$ |
986.0 |
|
5.39 |
% |
|||||
Investment securities |
|
|
|
|
|
|
|||||||||||||
Taxable |
|
8,261.5 |
|
243.5 |
|
2.95 |
|
|
9,173.1 |
|
269.1 |
|
2.93 |
|
|||||
Tax-exempt |
|
186.5 |
|
3.4 |
|
1.82 |
|
|
199.7 |
|
3.9 |
|
1.95 |
|
|||||
Investment in FHLB and FRB stock |
|
178.8 |
|
11.8 |
|
6.60 |
|
|
207.5 |
|
12.4 |
|
5.98 |
|
|||||
Interest-bearing deposits in banks |
|
422.5 |
|
22.2 |
|
5.25 |
|
|
303.0 |
|
15.7 |
|
5.18 |
|
|||||
Federal funds sold |
|
0.1 |
|
— |
|
— |
|
|
0.5 |
|
— |
|
— |
|
|||||
Total interest-earning assets |
$ |
27,231.4 |
$ |
1,309.1 |
|
4.81 |
% |
$ |
28,183.4 |
$ |
1,287.1 |
|
4.57 |
% |
|||||
Non-interest-earning assets |
|
2,825.0 |
|
|
|
2,951.1 |
|
|
|||||||||||
Total assets |
$ |
30,056.4 |
|
|
$ |
31,134.5 |
|
|
|||||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|||||||||||||
Demand deposits |
$ |
6,224.9 |
$ |
57.8 |
|
0.93 |
% |
$ |
6,553.3 |
$ |
47.2 |
|
0.72 |
% |
|||||
Savings deposits |
|
7,784.8 |
|
161.2 |
|
2.07 |
|
|
7,989.3 |
|
122.2 |
|
1.53 |
|
|||||
Time deposits |
|
2,894.1 |
|
106.9 |
|
3.69 |
|
|
2,676.3 |
|
73.2 |
|
2.74 |
|
|||||
Repurchase agreements |
|
687.2 |
|
6.7 |
|
0.97 |
|
|
940.4 |
|
6.4 |
|
0.68 |
|
|||||
Other borrowed funds |
|
2,434.7 |
|
123.4 |
|
5.07 |
|
|
2,514.6 |
|
133.8 |
|
5.32 |
|
|||||
Long-term debt |
|
253.4 |
|
11.8 |
|
4.66 |
|
|
120.8 |
|
5.8 |
|
4.80 |
|
|||||
Subordinated debentures held by subsidiary trusts |
|
163.1 |
|
13.1 |
|
8.03 |
|
|
163.1 |
|
12.7 |
|
7.79 |
|
|||||
Total interest-bearing liabilities |
$ |
20,442.2 |
$ |
480.9 |
|
2.35 |
% |
$ |
20,957.8 |
$ |
401.3 |
|
1.91 |
% |
|||||
Non-interest-bearing deposits |
|
5,879.4 |
|
|
|
6,549.9 |
|
|
|||||||||||
Other non-interest-bearing liabilities |
|
468.8 |
|
|
|
475.9 |
|
|
|||||||||||
Stockholders’ equity |
|
3,266.0 |
|
|
|
3,150.9 |
|
|
|||||||||||
Total liabilities and stockholders’ equity |
$ |
30,056.4 |
|
|
$ |
31,134.5 |
|
|
|||||||||||
Net FTE interest income (non-GAAP)(3) |
|
$ |
828.2 |
|
|
|
$ |
885.8 |
|
|
|||||||||
Less FTE adjustments (2) |
|
|
(6.6 |
) |
|
|
|
(7.0 |
) |
|
|||||||||
Net interest income from consolidated statements of income |
|
$ |
821.6 |
|
|
|
$ |
878.8 |
|
|
|||||||||
Interest rate spread |
|
|
2.46 |
% |
|
|
2.66 |
% |
|||||||||||
Net interest margin |
|
|
3.02 |
|
|
|
3.33 |
|
|||||||||||
Net FTE interest margin (3) |
|
|
3.04 |
|
|
|
3.14 |
|
|||||||||||
Cost of funds, including non-interest-bearing demand deposits (4) |
|
|
1.83 |
|
|
|
1.46 |
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||
(1) Average loan balances include mortgage 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 an FTE basis utilizing a |
|||||||||||||||||||
(3) Non-GAAP financial measure - see Non-GAAP Financial Measures included herein for a reconciliation to GAAP measures. |
|||||||||||||||||||
(4) Calculated by dividing total annualized interest on interest-bearing liabilities by the sum of total interest-bearing liabilities plus non-interest-bearing deposits. |
|||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Non-GAAP Financial Measures (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
As of or For the Quarter Ended |
||||||||||||||||||
(In millions, except % and per share data) |
|
Dec 31, 2024 |
Sep 30, 2024 |
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
||||||||||||||
Total common stockholders' equity (GAAP) |
(A) |
$ |
3,304.0 |
|
$ |
3,365.8 |
|
$ |
3,225.3 |
|
$ |
3,209.7 |
|
$ |
3,227.5 |
|
||||
Less goodwill and other intangible assets (excluding mortgage servicing rights) |
|
|
1,195.7 |
|
|
1,199.3 |
|
|
1,202.9 |
|
|
1,206.6 |
|
|
1,210.3 |
|
||||
Tangible common stockholders' equity (Non-GAAP) |
(B) |
$ |
2,108.3 |
|
$ |
2,166.5 |
|
$ |
2,022.4 |
|
$ |
2,003.1 |
|
$ |
2,017.2 |
|
||||
|
|
|
|
|
|
|
||||||||||||||
Total assets (GAAP) |
|
$ |
29,137.4 |
|
$ |
29,595.5 |
|
$ |
30,289.5 |
|
$ |
30,144.8 |
|
$ |
30,671.2 |
|
||||
Less goodwill and other intangible assets (excluding mortgage servicing rights) |
|
|
1,195.7 |
|
|
1,199.3 |
|
|
1,202.9 |
|
|
1,206.6 |
|
|
1,210.3 |
|
||||
Tangible assets (Non-GAAP) |
(C) |
$ |
27,941.7 |
|
$ |
28,396.2 |
|
$ |
29,086.6 |
|
$ |
28,938.2 |
|
$ |
29,460.9 |
|
||||
|
|
|
|
|
|
|
||||||||||||||
Average Balances: |
|
|
|
|
|
|
||||||||||||||
Total common stockholders' equity (GAAP) |
(D) |
$ |
3,332.1 |
|
$ |
3,307.1 |
|
$ |
3,195.3 |
|
$ |
3,228.4 |
|
$ |
3,140.3 |
|
||||
Less goodwill and other intangible assets (excluding mortgage servicing rights) |
|
|
1,197.4 |
|
|
1,201.0 |
|
|
1,204.6 |
|
|
1,208.4 |
|
|
1,212.1 |
|
||||
Average tangible common stockholders' equity (Non-GAAP) |
(E) |
$ |
2,134.7 |
|
$ |
2,106.1 |
|
$ |
1,990.7 |
|
$ |
2,020.0 |
|
$ |
1,928.2 |
|
||||
|
|
|
|
|
|
|
||||||||||||||
Net interest income |
(F) |
$ |
214.3 |
|
$ |
205.5 |
|
$ |
201.7 |
|
$ |
200.1 |
|
$ |
207.8 |
|
||||
FTE interest income |
|
|
1.6 |
|
|
1.6 |
|
|
1.7 |
|
|
1.7 |
|
|
1.7 |
|
||||
Net FTE interest income (Non-GAAP) |
(G) |
|
215.9 |
|
|
207.1 |
|
|
203.4 |
|
|
201.8 |
|
|
209.5 |
|
||||
Less purchase accounting accretion |
|
|
8.6 |
|
|
4.4 |
|
|
5.1 |
|
|
6.5 |
|
|
5.4 |
|
||||
Adjusted net FTE interest income (Non-GAAP) |
(H) |
$ |
207.3 |
|
$ |
202.7 |
|
$ |
198.3 |
|
$ |
195.3 |
|
$ |
204.1 |
|
||||
|
|
|
|
|
|
|
||||||||||||||
Average interest-earning assets |
(I) |
$ |
26,811.6 |
|
$ |
27,133.3 |
|
$ |
27,286.9 |
|
$ |
27,699.6 |
|
$ |
27,569.4 |
|
||||
Total quarterly average assets |
(J) |
|
29,618.9 |
|
|
29,946.9 |
|
|
30,140.6 |
|
|
30,525.2 |
|
|
30,507.7 |
|
||||
Annualized net income available to common shareholders |
(K) |
|
207.3 |
|
|
220.8 |
|
|
241.3 |
|
|
234.9 |
|
|
244.0 |
|
||||
Common shares outstanding |
(L) |
|
104,586 |
|
|
104,530 |
|
|
104,561 |
|
|
104,572 |
|
|
103,942 |
|
||||
|
|
|
|
|
|
|
||||||||||||||
Return on average assets (GAAP) |
(K) / (J) |
|
0.70 |
% |
|
0.74 |
% |
|
0.80 |
% |
|
0.77 |
% |
|
0.80 |
% |
||||
Return on average common stockholders' equity (GAAP) |
(K) / (D) |
|
6.22 |
|
|
6.68 |
|
|
7.55 |
|
|
7.28 |
|
|
7.77 |
|
||||
Average common stockholders' equity to average assets (GAAP) |
(D) / (J) |
|
11.25 |
|
|
11.04 |
|
|
10.60 |
|
|
10.58 |
|
|
10.29 |
|
||||
Book value per common share (GAAP) |
(A) / (L) |
$ |
31.59 |
|
$ |
32.20 |
|
$ |
30.85 |
|
$ |
30.69 |
|
$ |
31.05 |
|
||||
Tangible book value per common share (Non-GAAP) |
(B) / (L) |
|
20.16 |
|
|
20.73 |
|
|
19.34 |
|
|
19.16 |
|
|
19.41 |
|
||||
Tangible common stockholders' equity to tangible assets (Non-GAAP) |
(B) / (C) |
|
7.55 |
% |
|
7.63 |
% |
|
6.95 |
% |
|
6.92 |
% |
|
6.85 |
% |
||||
Return on average tangible common stockholders' equity (Non-GAAP) |
(K) / (E) |
|
9.71 |
|
|
10.48 |
|
|
12.12 |
|
|
11.63 |
|
|
12.65 |
|
||||
Net interest margin (GAAP) |
(F*) / (I) |
|
3.18 |
|
|
3.01 |
|
|
2.97 |
|
|
2.91 |
|
|
2.99 |
|
||||
Net FTE interest margin (Non-GAAP) |
(G*) / (I) |
|
3.20 |
|
|
3.04 |
|
|
3.00 |
|
|
2.93 |
|
|
3.01 |
|
||||
Adjusted FTE net interest margin (Non-GAAP) |
(H*) / (I) |
|
3.08 |
|
|
2.97 |
|
|
2.92 |
|
|
2.84 |
|
|
2.94 |
|
||||
|
|
|
|
|
|
|
||||||||||||||
*Annualized |
||||||||||||||||||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Non-GAAP Financial Measures (Unaudited) |
|||||||||
|
|
|
|
|
|||||
|
|
|
For the Year Ended |
||||||
(In millions, except % and per share data) |
|
|
Dec 31, 2024 |
Dec 31, 2023 |
|||||
Average Balances: |
|
|
|
|
|||||
Total common stockholders' equity (GAAP) |
|
(A) |
$ |
3,266.0 |
|
$ |
3,150.9 |
|
|
Less goodwill and other intangible assets (excluding mortgage servicing rights) |
|
|
|
1,202.8 |
|
|
1,217.9 |
|
|
Average tangible common stockholders' equity (Non-GAAP) |
|
(B) |
$ |
2,063.2 |
|
$ |
1,933.0 |
|
|
|
|
|
|
|
|||||
Net interest income |
|
(C) |
$ |
821.6 |
|
$ |
878.8 |
|
|
FTE interest income |
|
|
|
6.6 |
|
|
7.0 |
|
|
Net FTE interest income |
|
(D) |
|
828.2 |
|
|
885.8 |
|
|
Less: Purchase accounting accretion |
|
|
|
24.6 |
|
|
20.4 |
|
|
Adjusted net interest income (FTE) |
|
(E) |
$ |
803.6 |
|
$ |
865.4 |
|
|
|
|
|
|
|
|||||
Average interest-earning assets |
|
(F) |
$ |
27,231.4 |
|
$ |
28,183.4 |
|
|
Total average assets |
|
(G) |
|
30,056.4 |
|
|
31,134.5 |
|
|
Net income available to common shareholders |
|
(H) |
|
226.0 |
|
|
257.5 |
|
|
|
|
|
|
|
|||||
Return on average assets (GAAP) |
|
(H) / (G) |
|
0.75 |
% |
|
0.83 |
% |
|
Return on average common stockholders' equity (GAAP) |
|
(H) / (A) |
|
6.92 |
|
|
8.17 |
|
|
Average common stockholders' equity to average assets (GAAP) |
|
(A) / (G) |
|
10.87 |
|
|
10.12 |
|
|
Return on average tangible common stockholders' equity (Non-GAAP) |
|
(H) / (B) |
|
10.95 |
|
|
13.32 |
|
|
Net interest margin (GAAP) |
|
(C) / (F) |
|
3.02 |
|
|
3.12 |
|
|
Net interest margin (FTE) (Non-GAAP) |
|
(D) / (F) |
|
3.04 |
|
|
3.14 |
|
|
Adjusted net interest margin (FTE) (Non-GAAP) |
|
(E) / (F) |
|
2.95 |
|
|
3.07 |
|
|
|
|
|
|
|
|||||
(FIBK-ER)
View source version on businesswire.com: https://www.businesswire.com/news/home/20250129723914/en/
David Della Camera, CFA
Deputy Chief Financial Officer
First Interstate BancSystem, Inc.
(406) 255-5363
investor.relations@fib.com
Source: First Interstate BancSystem, Inc.
