First Interstate BancSystem, Inc. Reports Second Quarter Earnings
First Interstate BancSystem (NASDAQ: FIBK) reported Q2 2024 earnings with net income of $60.0 million, or $0.58 per share, up from $58.4 million, or $0.57 per share in Q1 2024, but down from $67.0 million, or $0.65 per share in Q2 2023. Key highlights:
- Criticized loans decreased by $12.0 million.
- Non-performing assets fell by $14.5 million.
- Net interest margin increased by 6 basis points to 2.97%.
- Total deposits rose by $60.7 million.
- Non-interest expense dropped by $3.3 million from Q1 2024 and $7.0 million from Q2 2023.
Despite positive net interest margin and expense control, net interest income declined by $16.7 million year-over-year due to higher interest-bearing deposit costs. The board declared a dividend of $0.47 per share, payable on August 15, 2024, with a 7.1% annualized yield.
First Interstate BancSystem (NASDAQ: FIBK) ha riportato i risultati del secondo trimestre 2024 con un utile netto di 60,0 milioni di dollari, ovvero 0,58 dollari per azione, in aumento rispetto ai 58,4 milioni di dollari, o 0,57 dollari per azione nel primo trimestre 2024, ma in diminuzione rispetto ai 67,0 milioni di dollari, o 0,65 dollari per azione nel secondo trimestre 2023. Punti salienti:
- I prestiti problematici sono diminuati di 12,0 milioni di dollari.
- Le attività non performanti sono scese di 14,5 milioni di dollari.
- Il margine di interesse netto è aumentato di 6 punti base, raggiungendo il 2,97%.
- Le depositi totali sono aumentati di 60,7 milioni di dollari.
- Le spese non di interesse sono calate di 3,3 milioni di dollari rispetto al primo trimestre 2024 e di 7,0 milioni di dollari rispetto al secondo trimestre 2023.
Nonostante un margine di interesse netto positivo e un controllo delle spese, il reddito netto da interessi è diminuito di 16,7 milioni di dollari rispetto all'anno precedente a causa dell'aumento dei costi dei depositi remunerati. Il consiglio ha dichiarato un dividendo di 0,47 dollari per azione, pagabile il 15 agosto 2024, con un rendimento annualizzato del 7,1%.
First Interstate BancSystem (NASDAQ: FIBK) reportó sus resultados del segundo trimestre 2024 con un ingreso neto de 60,0 millones de dólares, o 0,58 dólares por acción, un aumento respecto a los 58,4 millones de dólares, o 0,57 dólares por acción en el primer trimestre 2024, pero a la baja desde los 67,0 millones de dólares, o 0,65 dólares por acción en el segundo trimestre 2023. Puntos destacados:
- Los préstamos en crítica disminuyeron en 12,0 millones de dólares.
- Los activos no productivos cayeron en 14,5 millones de dólares.
- El margen de interés neto aumentó 6 puntos básicos, alcanzando el 2,97%.
- Los depósitos totales crecieron en 60,7 millones de dólares.
- Los gastos no relacionados con intereses cayeron en 3,3 millones de dólares desde el primer trimestre 2024 y en 7,0 millones de dólares desde el segundo trimestre 2023.
A pesar de un margen de interés neto positivo y un control de gastos, los ingresos netos por intereses disminuyeron en 16,7 millones de dólares respecto al año anterior debido a los mayores costos de los depósitos remunerados. La junta declaró un dividendo de 0,47 dólares por acción, pagadero el 15 de agosto de 2024, con un rendimiento anualizado del 7,1%.
퍼스트 인터스테이트 뱅크시스템(NASDAQ: FIBK)은 2024년 2분기 실적을 보고했으며, 순익은 6천만 달러, 즉 주당 0.58 달러로 2024년 1분기의 5840만 달러, 즉 주당 0.57 달러에서 증가했지만 2023년 2분기의 6천7백만 달러, 즉 주당 0.65 달러에서 감소했습니다. 주요 사항:
- 문제가 있는 대출이 1천200만 달러 감소했습니다.
- 부실 자산이 1천450만 달러 감소했습니다.
- 순이자 마진이 6bp 증가하여 2.97%에 달했습니다.
- 총 예치금이 6천700만 달러 증가했습니다.
- 비이자 비용이 2024년 1분기 대비 3백30만 달러, 2023년 2분기 대비 7백만 달러 감소했습니다.
긍정적인 순이자 마진과 비용 통제에도 불구하고, 순이자 수익은 이자 지급 예치금 비용 상승으로 인해 전년 대비 1천670만 달러 감소했습니다. 이사회는 주당 0.47 달러의 배당금을 선언했으며, 이는 2024년 8월 15일에 지급되고 연 7.1%의 수익률을 보입니다.
First Interstate BancSystem (NASDAQ: FIBK) a annoncé des résultats pour le deuxième trimestre 2024 avec un revenu net de 60,0 millions de dollars, soit 0,58 dollar par action, en hausse par rapport à 58,4 millions de dollars, soit 0,57 dollar par action au premier trimestre 2024, mais en baisse par rapport à 67,0 millions de dollars, soit 0,65 dollar par action au deuxième trimestre 2023. Points clés :
- Les prêts en difficulté ont diminué de 12,0 millions de dollars.
- Les actifs non performants ont baissé de 14,5 millions de dollars.
- La marge d'intérêt nette a augmenté de 6 points de base pour atteindre 2,97%.
- Les dépôts totaux ont augmenté de 60,7 millions de dollars.
- Les dépenses non liées aux intérêts ont diminué de 3,3 millions de dollars par rapport au premier trimestre 2024 et de 7,0 millions de dollars par rapport au deuxième trimestre 2023.
Malgré une marge d'intérêt nette positive et un contrôle des dépenses, le revenu net d'intérêts a chuté de 16,7 millions de dollars d'une année sur l'autre en raison de l'augmentation des coûts des dépôts rémunérés. Le conseil d'administration a déclaré un dividende de 0,47 dollar par action, payable le 15 août 2024, avec un rendement annualisé de 7,1%.
First Interstate BancSystem (NASDAQ: FIBK) hat die Ergebnisse des 2. Quartals 2024 veröffentlicht, mit einem Nettogewinn von 60,0 Millionen Dollar, oder 0,58 Dollar pro Aktie, was einem Anstieg gegenüber 58,4 Millionen Dollar, oder 0,57 Dollar pro Aktie im 1. Quartal 2024 entspricht, jedoch einen Rückgang von 67,0 Millionen Dollar, oder 0,65 Dollar pro Aktie im 2. Quartal 2023 darstellt. Wichtige Highlights:
- Kritische Kredite sind um 12,0 Millionen Dollar gesunken.
- Nicht leistungsfähige Vermögenswerte fielen um 14,5 Millionen Dollar.
- Der Nettozinssatz erhöhte sich um 6 Basispunkte auf 2,97%.
- Die Gesamteinlagen stiegen um 60,7 Millionen Dollar.
- Die nichtzinsbezogenen Ausgaben verringerten sich um 3,3 Millionen Dollar im Vergleich zum 1. Quartal 2024 und um 7,0 Millionen Dollar im Vergleich zum 2. Quartal 2023.
Trotz eines positiven Nettozinssatzes und einer Kostenkontrolle ging das Nettozinsgehalt im Jahresvergleich um 16,7 Millionen Dollar zurück, was auf gestiegene Kosten für zinstragende Einlagen zurückzuführen ist. Der Vorstand erklärte eine Dividende von 0,47 Dollar pro Aktie, zahlbar am 15. August 2024, mit einer annualisierten Rendite von 7,1 %.
- Net income increased to $60.0 million from $58.4 million in Q1 2024.
- Net interest margin increased to 2.97%, up 6 basis points.
- Total deposits increased by $60.7 million.
- Non-performing assets decreased by $14.5 million.
- Non-interest expense decreased by $3.3 million compared to Q1 2024.
- Net income decreased from $67.0 million in Q2 2023 to $60.0 million.
- Net interest income decreased by $16.7 million year-over-year.
- Provision for credit losses increased to $9.0 million from $5.3 million in Q1 2024.
Insights
First Interstate BancSystem's Q2 2024 results show modest improvement, but some concerning trends persist. The net income of $60.0 million ($0.58 per share) represents a slight increase from Q1 2024 but a decrease from Q2 2023. While the net interest margin improved to 2.97%, up 6 basis points from Q1, it's still below the 3.09% seen in Q2 2023.
The decrease in criticized loans and non-performing assets is positive, indicating improved credit quality. However, the provision for credit losses increased to $9.0 million from $5.3 million in Q1, suggesting some caution about future loan performance.
On the balance sheet, total deposits increased slightly by $60.7 million, but are down
The decrease in non-interest expense by
Overall, while there are some positive signs, the bank faces challenges in growing its top line and maintaining its net interest margin in a competitive environment. Investors should monitor deposit trends and credit quality closely in the coming quarters.
From a market perspective, First Interstate BancSystem's Q2 results present a mixed picture. The bank's performance should be viewed in the context of the broader regional banking sector, which has faced challenges in 2024.
The slight improvement in net income and net interest margin could be seen positively by investors, especially given the challenging interest rate environment. However, the year-over-year decline in these metrics may raise concerns about long-term growth prospects.
The bank's capital position remains strong, with the company considered "well-capitalized". This, combined with the maintained dividend of $0.47 per share (yielding
The reduction in non-performing assets and criticized loans is a positive sign for credit quality, which has been a key focus for bank investors following recent sector turmoil. However, the increased provision for credit losses suggests management is preparing for potential economic headwinds.
The modest deposit growth and stable loan portfolio indicate that First Interstate is maintaining its market position, but not significantly expanding. This could be viewed as a conservative approach in an uncertain economic environment.
Compared to its peers, First Interstate's performance appears solid, if unspectacular. The bank's focus on expense management and credit quality could be attractive to risk-averse investors, but those seeking high growth may look elsewhere in the sector.
HIGHLIGHTS
-
Criticized loans decreased
$12.0 million -
Non-performing assets decreased
$14.5 million -
Net interest margin increased to
2.97% for the second quarter of 2024, a 6 basis point increase from the first quarter of 2024. Net interest margin, on a fully taxable equivalent (“FTE”) basis1, increased to3.00% for the second quarter of 2024, or a 7 basis point increase from the first quarter of 2024. -
Loans held for investment increased
$32.2 million -
Total deposits increased
$60.7 million -
Non-interest expense decreased
$3.3 million $7.0 million
“We continued executing well in the second quarter, with results generally in-line with expectations. We were pleased to see our net interest margin expansion, as expected, a reduction in non-performing assets, and continued expense control. Given our strong levels of capital and liquidity, adequate allowance for credit losses, and continued expectations for net interest margin expansion and expense control, we believe we are well positioned for the remainder of 2024 into 2025 and remain confident in our ability to generate solid returns,” said Kevin P. Riley, President and Chief Executive Officer of First Interstate BancSystem, Inc.
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.
DIVIDEND DECLARATION
On July 24, 2024, 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 second quarter of 2024, the first quarter of 2024, and the second quarter of 2023, in the amounts of
$5.1 million $6.5 million $4.6 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 second quarter of 2024, the Company recorded a provision for credit losses of
For the second quarter of 2024, 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 was
NON-INTEREST INCOME
For the Quarter Ended |
Jun 30, 2024 |
|
Mar 31, 2024 |
|
$ Change |
% Change |
|
Jun 30, 2023 |
|
$ Change |
% Change |
||||||||||
(Dollars in millions) |
|
|
|
|
|||||||||||||||||
Payment services revenues |
$ |
18.6 |
|
$ |
18.4 |
|
$ |
0.2 |
|
1.1 |
% |
|
$ |
20.1 |
|
|
$ |
(1.5 |
) |
(7.5 |
)% |
Mortgage banking revenues |
|
1.7 |
|
|
1.7 |
|
|
— |
|
— |
|
|
|
2.6 |
|
|
|
(0.9 |
) |
(34.6 |
) |
Wealth management revenues |
|
9.4 |
|
|
9.2 |
|
|
0.2 |
|
2.2 |
|
|
|
8.8 |
|
|
|
0.6 |
|
6.8 |
|
Service charges on deposit accounts |
|
6.4 |
|
|
6.0 |
|
|
0.4 |
|
6.7 |
|
|
|
5.8 |
|
|
|
0.6 |
|
10.3 |
|
Other service charges, commissions, and fees |
|
2.1 |
|
|
2.2 |
|
|
(0.1 |
) |
(4.5 |
) |
|
|
2.4 |
|
|
|
(0.3 |
) |
(12.5 |
) |
Investment securities loss |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
(100.0 |
) |
Other income |
|
4.4 |
|
|
4.6 |
|
|
(0.2 |
) |
(4.3 |
) |
|
|
4.5 |
|
|
|
(0.1 |
) |
(2.2 |
) |
Total non-interest income |
$ |
42.6 |
|
$ |
42.1 |
|
$ |
0.5 |
|
1.2 |
% |
|
$ |
44.1 |
|
|
$ |
(1.5 |
) |
(3.4 |
)% |
Non-interest income was
NON-INTEREST EXPENSE
For the Quarter Ended |
Jun 30, 2024 |
|
Mar 31, 2024 |
|
$ Change |
% Change |
|
Jun 30, 2023 |
|
$ Change |
% Change |
|||||||||
(Dollars in millions) |
|
|
|
|
||||||||||||||||
Salaries and wages |
$ |
66.3 |
|
$ |
65.2 |
|
$ |
1.1 |
|
1.7 |
% |
|
$ |
68.1 |
|
$ |
(1.8 |
) |
(2.6 |
)% |
Employee benefits |
|
16.9 |
|
|
19.3 |
|
|
(2.4 |
) |
(12.4 |
) |
|
|
19.3 |
|
|
(2.4 |
) |
(12.4 |
) |
Occupancy and equipment |
|
16.9 |
|
|
17.3 |
|
|
(0.4 |
) |
(2.3 |
) |
|
|
17.3 |
|
|
(0.4 |
) |
(2.3 |
) |
Other intangible amortization |
|
3.7 |
|
|
3.7 |
|
|
— |
|
— |
|
|
|
3.9 |
|
|
(0.2 |
) |
(5.1 |
) |
Other expenses |
|
51.1 |
|
|
52.7 |
|
|
(1.6 |
) |
(3.0 |
) |
|
|
54.7 |
|
|
(3.6 |
) |
(6.6 |
) |
Other real estate owned expense |
|
2.0 |
|
|
2.0 |
|
|
— |
|
— |
|
|
|
0.6 |
|
|
1.4 |
|
233.3 |
|
Total non-interest expense |
$ |
156.9 |
|
$ |
160.2 |
|
$ |
(3.3 |
) |
(2.1 |
)% |
|
$ |
163.9 |
|
$ |
(7.0 |
) |
(4.3 |
)% |
The Company’s non-interest expense was
Salary and wages expense increased
Employee benefit expenses decreased
Other expenses decreased
Other real estate owned expenses were stable during the second quarter of 2024 compared to the first quarter of 2024 and increased
BALANCE SHEET
Total assets increased
Investment securities decreased
The following table presents the composition and comparison of loans held for investment as of the quarters-ended:
|
Jun 30, 2024 |
Mar 31, 2024 |
$ Change |
% Change |
Jun 30, 2023 |
$ Change |
% Change |
||||||||||||
Real Estate: |
|
|
|
|
|
|
|
||||||||||||
Commercial |
$ |
9,054.5 |
|
$ |
9,060.4 |
|
$ |
(5.9 |
) |
(0.1 |
)% |
$ |
8,813.9 |
|
$ |
240.6 |
|
2.7 |
% |
Construction |
|
1,519.9 |
|
|
1,609.2 |
|
|
(89.3 |
) |
(5.5 |
) |
|
1,836.5 |
|
|
(316.6 |
) |
(17.2 |
) |
Residential |
|
2,246.4 |
|
|
2,258.4 |
|
|
(12.0 |
) |
(0.5 |
) |
|
2,198.3 |
|
|
48.1 |
|
2.2 |
|
Agricultural |
|
723.5 |
|
|
719.7 |
|
|
3.8 |
|
0.5 |
|
|
755.7 |
|
|
(32.2 |
) |
(4.3 |
) |
Total real estate |
|
13,544.3 |
|
|
13,647.7 |
|
|
(103.4 |
) |
(0.8 |
) |
|
13,604.4 |
|
|
(60.1 |
) |
(0.4 |
) |
Consumer: |
|
|
|
|
|
|
|
||||||||||||
Indirect |
|
733.7 |
|
|
739.9 |
|
|
(6.2 |
) |
(0.8 |
) |
|
764.1 |
|
|
(30.4 |
) |
(4.0 |
) |
Direct and advance lines |
|
139.0 |
|
|
136.7 |
|
|
2.3 |
|
1.7 |
|
|
144.0 |
|
|
(5.0 |
) |
(3.5 |
) |
Credit card |
|
76.1 |
|
|
72.6 |
|
|
3.5 |
|
4.8 |
|
|
72.1 |
|
|
4.0 |
|
5.5 |
|
Total consumer |
|
948.8 |
|
|
949.2 |
|
|
(0.4 |
) |
— |
|
|
980.2 |
|
|
(31.4 |
) |
(3.2 |
) |
Commercial |
|
3,052.9 |
|
|
2,922.2 |
|
|
130.7 |
|
4.5 |
|
|
3,002.7 |
|
|
50.2 |
|
1.7 |
|
Agricultural |
|
698.2 |
|
|
696.0 |
|
|
2.2 |
|
0.3 |
|
|
688.0 |
|
|
10.2 |
|
1.5 |
|
Other, including overdrafts |
|
3.1 |
|
|
0.2 |
|
|
2.9 |
|
NM |
|
|
1.7 |
|
|
1.4 |
|
82.4 |
|
Deferred loan fees and costs |
|
(12.3 |
) |
|
(12.5 |
) |
|
0.2 |
|
(1.6 |
) |
|
(13.6 |
) |
|
1.3 |
|
(9.6 |
) |
Loans held for investment, net of deferred loan fees and costs |
$ |
18,235.0 |
|
$ |
18,202.8 |
|
$ |
32.2 |
|
0.2 |
% |
$ |
18,263.4 |
|
$ |
(28.4 |
) |
(0.2 |
)% |
The ratio of loans held for investment to deposits was
Total deposits increased
Securities sold under repurchase agreements decreased
Other borrowed funds is comprised of Federal Home Loan Bank and Bank Term Funding Program variable-rate, overnight and fixed-rate borrowings with contractual tenors of up to one year. Other borrowed funds increased
The Company is considered to be “well-capitalized” as of June 30, 2024, having exceeded all regulatory capital adequacy requirements. During the second quarter of 2024, the Company paid regular common stock dividends of approximately
CREDIT QUALITY
As of June 30, 2024, non-performing assets decreased
Criticized loans decreased
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). 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;
- 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,” “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;
- our reliance on other companies that provide key components of our business infrastructure;
- events that may tarnish our reputation;
- main stream 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 systems of internal operating and accounting controls;
- our ability to implement 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;
- 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 impact of the combined deficiencies resulting in a material weakness in our internal control over financial reporting;
- 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.
Second Quarter 2024 Conference Call for Investors
First Interstate BancSystem, Inc. will host a conference call to discuss the results for the second quarter of 2024 at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time) on Friday, July 26, 2024. The conference call will be accessible by telephone and through the Internet. Participants may join the call by dialing 1-800-274-8461; the access code is FIBANC. To participate via the Internet, visit www.FIBK.com. The call will be recorded and made available for replay on July 26, 2024, after 1:00 p.m. Eastern Time (11:00 a.m. Mountain Time), through August 25, 2024, prior to 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time), by dialing 1-800-753-9146; the access code is 24978. 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) |
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
|
2Q24 vs
|
2Q24 vs
|
|
|||||||||
Net interest income |
$ |
201.7 |
$ |
200.1 |
$ |
207.8 |
$ |
213.7 |
|
$ |
218.4 |
|
|
0.8 |
% |
(7.6 |
)% |
|
Net interest income on a fully-taxable equivalent ("FTE") basis |
|
203.4 |
|
201.8 |
|
209.5 |
|
215.4 |
|
|
220.2 |
|
|
0.8 |
|
(7.6 |
) |
|
Provision for (reduction in) credit losses |
|
9.0 |
|
5.3 |
|
5.4 |
|
(0.1 |
) |
|
11.7 |
|
|
69.8 |
|
(23.1 |
) |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|||||||||
Payment services revenues |
|
18.6 |
|
18.4 |
|
18.4 |
|
19.2 |
|
|
20.1 |
|
|
1.1 |
|
(7.5 |
) |
|
Mortgage banking revenues |
|
1.7 |
|
1.7 |
|
1.5 |
|
2.0 |
|
|
2.6 |
|
|
— |
|
(34.6 |
) |
|
Wealth management revenues |
|
9.4 |
|
9.2 |
|
8.8 |
|
8.7 |
|
|
8.8 |
|
|
2.2 |
|
6.8 |
|
|
Service charges on deposit accounts |
|
6.4 |
|
6.0 |
|
6.0 |
|
6.0 |
|
|
5.8 |
|
|
6.7 |
|
10.3 |
|
|
Other service charges, commissions, and fees |
|
2.1 |
|
2.2 |
|
2.5 |
|
2.2 |
|
|
2.4 |
|
|
(4.5 |
) |
(12.5 |
) |
|
Total fee-based revenues |
|
38.2 |
|
37.5 |
|
37.2 |
|
38.1 |
|
|
39.7 |
|
|
1.9 |
|
(3.8 |
) |
|
Investment securities loss |
|
— |
|
— |
|
— |
|
— |
|
|
(0.1 |
) |
|
— |
|
(100.0 |
) |
|
Other income |
|
4.4 |
|
4.6 |
|
7.3 |
|
3.9 |
|
|
4.5 |
|
|
(4.3 |
) |
(2.2 |
) |
|
Total non-interest income |
|
42.6 |
|
42.1 |
|
44.5 |
|
42.0 |
|
|
44.1 |
|
|
1.2 |
|
(3.4 |
) |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|||||||||
Salaries and wages |
|
66.3 |
|
65.2 |
|
64.0 |
|
65.4 |
|
|
68.1 |
|
|
1.7 |
|
(2.6 |
) |
|
Employee benefits |
|
16.9 |
|
19.3 |
|
13.5 |
|
19.7 |
|
|
19.3 |
|
|
(12.4 |
) |
(12.4 |
) |
|
Occupancy and equipment |
|
16.9 |
|
17.3 |
|
17.4 |
|
17.0 |
|
|
17.3 |
|
|
(2.3 |
) |
(2.3 |
) |
|
Other intangible amortization |
|
3.7 |
|
3.7 |
|
3.9 |
|
3.9 |
|
|
3.9 |
|
|
— |
|
(5.1 |
) |
|
Other expenses |
|
51.1 |
|
52.7 |
|
67.0 |
|
54.6 |
|
|
54.7 |
|
|
(3.0 |
) |
(6.6 |
) |
|
Other real estate owned expense |
|
2.0 |
|
2.0 |
|
0.2 |
|
0.5 |
|
|
0.6 |
|
|
— |
|
233.3 |
|
|
Total non-interest expense |
|
156.9 |
|
160.2 |
|
166.0 |
|
161.1 |
|
|
163.9 |
|
|
(2.1 |
) |
(4.3 |
) |
|
Income before income tax |
|
78.4 |
|
76.7 |
|
80.9 |
|
94.7 |
|
|
86.9 |
|
|
2.2 |
|
(9.8 |
) |
|
Provision for income tax |
|
18.4 |
|
18.3 |
|
19.4 |
|
22.0 |
|
|
19.9 |
|
|
0.5 |
|
(7.5 |
) |
|
Net income |
$ |
60.0 |
$ |
58.4 |
$ |
61.5 |
$ |
72.7 |
|
$ |
67.0 |
|
|
2.7 |
% |
(10.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average basic shares outstanding |
|
102,937 |
|
102,844 |
|
103,629 |
|
103,822 |
|
|
103,821 |
|
|
0.1 |
% |
(0.9 |
)% |
|
Weighted-average diluted shares outstanding |
|
103,093 |
|
103,040 |
|
103,651 |
|
103,826 |
|
|
103,823 |
|
|
0.1 |
|
(0.7 |
) |
|
Earnings per share - basic |
$ |
0.58 |
$ |
0.57 |
$ |
0.59 |
$ |
0.70 |
|
$ |
0.65 |
|
|
1.8 |
|
(10.8 |
) |
|
Earnings per share - diluted |
|
0.58 |
|
0.57 |
|
0.59 |
|
0.70 |
|
|
0.65 |
|
|
1.8 |
|
(10.8 |
) |
|
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
% Change |
|||||||||||||||
(In millions, except % and per share data) |
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
|
2Q24 vs
|
2Q24 vs
|
||||||||||||
Assets: |
|
|
|
|
|
|
|
|
||||||||||||
Cash and due from banks |
$ |
390.2 |
|
$ |
315.8 |
|
$ |
378.2 |
|
$ |
371.5 |
|
$ |
479.0 |
|
|
23.6 |
% |
(18.5 |
)% |
Interest-bearing deposits in banks |
|
568.2 |
|
|
319.1 |
|
|
199.7 |
|
|
219.5 |
|
|
201.4 |
|
|
78.1 |
|
182.1 |
|
Federal funds sold |
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
2.1 |
|
|
0.1 |
|
|
— |
|
— |
|
Cash and cash equivalents |
|
958.5 |
|
|
635.0 |
|
|
578.0 |
|
|
593.1 |
|
|
680.5 |
|
|
50.9 |
|
40.9 |
|
Investment securities, net |
|
8,401.6 |
|
|
8,626.1 |
|
|
9,049.4 |
|
|
8,887.2 |
|
|
9,175.6 |
|
|
(2.6 |
) |
(8.4 |
) |
Investment in Federal Home Loan Bank and Federal Reserve Bank stock |
|
182.3 |
|
|
178.4 |
|
|
223.2 |
|
|
189.5 |
|
|
210.4 |
|
|
2.2 |
|
(13.4 |
) |
Loans held for sale, at fair value |
|
22.3 |
|
|
22.7 |
|
|
47.4 |
|
|
59.1 |
|
|
76.5 |
|
|
(1.8 |
) |
(70.8 |
) |
Loans held for investment |
|
18,235.0 |
|
|
18,202.8 |
|
|
18,279.6 |
|
|
18,213.3 |
|
|
18,263.4 |
|
|
0.2 |
|
(0.2 |
) |
Allowance for credit losses |
|
(232.8 |
) |
|
(227.7 |
) |
|
(227.7 |
) |
|
(226.7 |
) |
|
(224.6 |
) |
|
2.2 |
|
3.7 |
|
Net loans held for investment |
|
18,002.2 |
|
|
17,975.1 |
|
|
18,051.9 |
|
|
17,986.6 |
|
|
18,038.8 |
|
|
0.2 |
|
(0.2 |
) |
Goodwill and intangible assets (excluding mortgage servicing rights) |
|
1,202.9 |
|
|
1,206.6 |
|
|
1,210.3 |
|
|
1,214.1 |
|
|
1,218.0 |
|
|
(0.3 |
) |
(1.2 |
) |
Company owned life insurance |
|
507.6 |
|
|
504.7 |
|
|
502.4 |
|
|
500.8 |
|
|
502.0 |
|
|
0.6 |
|
1.1 |
|
Premises and equipment |
|
436.5 |
|
|
439.9 |
|
|
444.3 |
|
|
446.3 |
|
|
443.7 |
|
|
(0.8 |
) |
(1.6 |
) |
Other real estate owned |
|
6.7 |
|
|
14.4 |
|
|
16.5 |
|
|
11.6 |
|
|
14.4 |
|
|
(53.5 |
) |
(53.5 |
) |
Mortgage servicing rights |
|
27.0 |
|
|
27.6 |
|
|
28.3 |
|
|
29.1 |
|
|
29.8 |
|
|
(2.2 |
) |
(9.4 |
) |
Other assets |
|
541.9 |
|
|
514.3 |
|
|
519.5 |
|
|
623.4 |
|
|
586.6 |
|
|
5.4 |
|
(7.6 |
) |
Total assets |
$ |
30,289.5 |
|
$ |
30,144.8 |
|
$ |
30,671.2 |
|
$ |
30,540.8 |
|
$ |
30,976.3 |
|
|
0.5 |
% |
(2.2 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and stockholders' equity: |
|
|
|
|
|
|
|
|
||||||||||||
Deposits |
$ |
22,870.7 |
|
$ |
22,810.0 |
|
$ |
23,323.1 |
|
$ |
23,679.5 |
|
$ |
23,579.2 |
|
|
0.3 |
% |
(3.0 |
)% |
Securities sold under repurchase agreements |
|
741.8 |
|
|
794.2 |
|
|
782.7 |
|
|
889.5 |
|
|
929.9 |
|
|
(6.6 |
) |
(20.2 |
) |
Long-term debt |
|
383.4 |
|
|
370.8 |
|
|
120.8 |
|
|
120.8 |
|
|
120.8 |
|
|
3.4 |
|
217.4 |
|
Other borrowed funds |
|
2,430.0 |
|
|
2,342.0 |
|
|
2,603.0 |
|
|
2,067.0 |
|
|
2,589.0 |
|
|
3.8 |
|
(6.1 |
) |
Subordinated debentures held by subsidiary trusts |
|
163.1 |
|
|
163.1 |
|
|
163.1 |
|
|
163.1 |
|
|
163.1 |
|
|
— |
|
— |
|
Other liabilities |
|
475.2 |
|
|
455.0 |
|
|
451.0 |
|
|
535.4 |
|
|
473.1 |
|
|
4.4 |
|
0.4 |
|
Total liabilities |
|
27,064.2 |
|
|
26,935.1 |
|
|
27,443.7 |
|
|
27,455.3 |
|
|
27,855.1 |
|
|
0.5 |
|
(2.8 |
) |
Stockholders' equity: |
|
|
|
|
|
|
|
|
||||||||||||
Common stock |
|
2,453.9 |
|
|
2,450.7 |
|
|
2,448.9 |
|
|
2,484.9 |
|
|
2,481.4 |
|
|
0.1 |
|
(1.1 |
) |
Retained earnings |
|
1,156.9 |
|
|
1,145.9 |
|
|
1,135.1 |
|
|
1,122.3 |
|
|
1,098.8 |
|
|
1.0 |
|
5.3 |
|
Accumulated other comprehensive loss |
|
(385.5 |
) |
|
(386.9 |
) |
|
(356.5 |
) |
|
(521.7 |
) |
|
(459.0 |
) |
|
(0.4 |
) |
(16.0 |
) |
Total stockholders' equity |
|
3,225.3 |
|
|
3,209.7 |
|
|
3,227.5 |
|
|
3,085.5 |
|
|
3,121.2 |
|
|
0.5 |
|
3.3 |
|
Total liabilities and stockholders' equity |
$ |
30,289.5 |
|
$ |
30,144.8 |
|
$ |
30,671.2 |
|
$ |
30,540.8 |
|
$ |
30,976.3 |
|
|
0.5 |
% |
(2.2 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
Common shares outstanding at period end |
|
104,561 |
|
|
104,572 |
|
|
103,942 |
|
|
105,011 |
|
|
105,021 |
|
|
— |
% |
(0.4 |
)% |
Book value per common share at period end |
$ |
30.85 |
|
$ |
30.69 |
|
$ |
31.05 |
|
$ |
29.38 |
|
$ |
29.72 |
|
|
0.5 |
|
3.8 |
|
Tangible book value per common share at period end** |
|
19.34 |
|
|
19.16 |
|
|
19.41 |
|
|
17.82 |
|
|
18.12 |
|
|
0.9 |
|
6.7 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
**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 %) |
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
|
2Q24 vs
|
2Q24 vs
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for investment: |
|
|
|
|
|
|
|
|
||||||||||||
Real Estate: |
|
|
|
|
|
|
|
|
||||||||||||
Commercial |
$ |
9,054.5 |
|
$ |
9,060.4 |
|
$ |
8,869.2 |
|
$ |
8,766.2 |
|
$ |
8,813.9 |
|
|
(0.1 |
)% |
2.7 |
% |
Construction |
|
1,519.9 |
|
|
1,609.2 |
|
|
1,826.5 |
|
|
1,930.3 |
|
|
1,836.5 |
|
|
(5.5 |
) |
(17.2 |
) |
Residential |
|
2,246.4 |
|
|
2,258.4 |
|
|
2,244.3 |
|
|
2,212.2 |
|
|
2,198.3 |
|
|
(0.5 |
) |
2.2 |
|
Agricultural |
|
723.5 |
|
|
719.7 |
|
|
716.8 |
|
|
731.5 |
|
|
755.7 |
|
|
0.5 |
|
(4.3 |
) |
Total real estate |
|
13,544.3 |
|
|
13,647.7 |
|
|
13,656.8 |
|
|
13,640.2 |
|
|
13,604.4 |
|
|
(0.8 |
) |
(0.4 |
) |
Consumer: |
|
|
|
|
|
|
|
|
||||||||||||
Indirect |
|
733.7 |
|
|
739.9 |
|
|
740.9 |
|
|
751.7 |
|
|
764.1 |
|
|
(0.8 |
) |
(4.0 |
) |
Direct |
|
139.0 |
|
|
136.7 |
|
|
141.6 |
|
|
142.3 |
|
|
144.0 |
|
|
1.7 |
|
(3.5 |
) |
Credit card |
|
76.1 |
|
|
72.6 |
|
|
76.5 |
|
|
71.6 |
|
|
72.1 |
|
|
4.8 |
|
5.5 |
|
Total consumer |
|
948.8 |
|
|
949.2 |
|
|
959.0 |
|
|
965.6 |
|
|
980.2 |
|
|
— |
|
(3.2 |
) |
Commercial |
|
3,052.9 |
|
|
2,922.2 |
|
|
2,906.8 |
|
|
2,925.1 |
|
|
3,002.7 |
|
|
4.5 |
|
1.7 |
|
Agricultural |
|
698.2 |
|
|
696.0 |
|
|
769.4 |
|
|
690.5 |
|
|
688.0 |
|
|
0.3 |
|
1.5 |
|
Other |
|
3.1 |
|
|
0.2 |
|
|
0.1 |
|
|
5.0 |
|
|
1.7 |
|
|
NM |
|
82.4 |
|
Deferred loan fees and costs |
|
(12.3 |
) |
|
(12.5 |
) |
|
(12.5 |
) |
|
(13.1 |
) |
|
(13.6 |
) |
|
(1.6 |
) |
(9.6 |
) |
Loans held for investment |
$ |
18,235.0 |
|
$ |
18,202.8 |
|
$ |
18,279.6 |
|
$ |
18,213.3 |
|
$ |
18,263.4 |
|
|
0.2 |
% |
(0.2 |
)% |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits: |
|
|
|
|
|
|
|
|
||||||||||||
Non-interest-bearing |
$ |
6,174.0 |
|
$ |
5,900.3 |
|
$ |
6,029.6 |
|
$ |
6,402.6 |
|
$ |
6,518.2 |
|
|
4.6 |
% |
(5.3 |
)% |
Interest-bearing: |
|
|
|
|
|
|
|
|
||||||||||||
Demand |
|
6,122.3 |
|
|
6,103.6 |
|
|
6,507.8 |
|
|
6,317.9 |
|
|
6,481.9 |
|
|
0.3 |
|
(5.5 |
) |
Savings |
|
7,733.6 |
|
|
7,872.2 |
|
|
7,775.8 |
|
|
7,796.3 |
|
|
7,836.7 |
|
|
(1.8 |
) |
(1.3 |
) |
Time, |
|
786.1 |
|
|
819.3 |
|
|
811.6 |
|
|
817.1 |
|
|
657.9 |
|
|
(4.1 |
) |
19.5 |
|
Time, other |
|
2,054.7 |
|
|
2,114.6 |
|
|
2,198.3 |
|
|
2,345.6 |
|
|
2,084.5 |
|
|
(2.8 |
) |
(1.4 |
) |
Total interest-bearing |
|
16,696.7 |
|
|
16,909.7 |
|
|
17,293.5 |
|
|
17,276.9 |
|
|
17,061.0 |
|
|
(1.3 |
) |
(2.1 |
) |
Total deposits |
$ |
22,870.7 |
|
$ |
22,810.0 |
|
$ |
23,323.1 |
|
$ |
23,679.5 |
|
$ |
23,579.2 |
|
|
0.3 |
% |
(3.0 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
Total core deposits (1) |
$ |
22,084.6 |
|
$ |
21,990.7 |
|
$ |
22,511.5 |
|
$ |
22,862.4 |
|
$ |
22,921.3 |
|
|
0.4 |
% |
(3.7 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
(1) Core deposits are defined as total deposits less time deposits, |
||||||||||||||||||||
NM - not meaningful |
|
|
|
|
|
|
|
|
||||||||||||
|
||||||||||||||||||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Credit Quality (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
% Change |
|||||||||||||||
(In millions, except %) |
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
|
2Q24 vs
|
2Q24 vs
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for Credit Losses: |
|
|
|
|
|
|
|
|
||||||||||||
Allowance for credit losses |
$ |
232.8 |
|
$ |
227.7 |
|
$ |
227.7 |
|
$ |
226.7 |
|
$ |
224.6 |
|
|
2.2 |
% |
3.7 |
% |
As a percentage of loans held for investment |
|
1.28 |
% |
|
1.25 |
% |
|
1.25 |
% |
|
1.24 |
% |
|
1.23 |
% |
|
|
|
||
As a percentage of non-accrual loans |
|
140.58 |
|
|
132.38 |
|
|
214.00 |
|
|
278.50 |
|
|
260.86 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||||||
Net loan charge-offs during quarter |
$ |
13.5 |
|
$ |
8.4 |
|
$ |
4.8 |
|
$ |
1.1 |
|
$ |
11.4 |
|
|
60.7 |
% |
18.4 |
% |
Annualized as a percentage of average loans |
|
0.30 |
% |
|
0.18 |
% |
|
0.10 |
% |
|
0.02 |
% |
|
0.25 |
% |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||||||
Non-Performing Assets: |
|
|
|
|
|
|
|
|
||||||||||||
Non-accrual loans |
$ |
165.6 |
|
$ |
172.0 |
|
$ |
106.4 |
|
$ |
81.4 |
|
$ |
86.1 |
|
|
(3.7 |
)% |
92.3 |
% |
Accruing loans past due 90 days or more |
|
2.6 |
|
|
3.0 |
|
|
4.9 |
|
|
3.2 |
|
|
6.7 |
|
|
(13.3 |
) |
(61.2 |
) |
Total non-performing loans |
|
168.2 |
|
|
175.0 |
|
|
111.3 |
|
|
84.6 |
|
|
92.8 |
|
|
(3.9 |
) |
81.3 |
|
Other real estate owned |
|
6.7 |
|
|
14.4 |
|
|
16.5 |
|
|
11.6 |
|
|
14.4 |
|
|
(53.5 |
) |
(53.5 |
) |
Total non-performing assets |
$ |
174.9 |
|
$ |
189.4 |
|
$ |
127.8 |
|
$ |
96.2 |
|
$ |
107.2 |
|
|
(7.7 |
)% |
63.2 |
% |
|
|
|
|
|
|
|
|
|
||||||||||||
Non-performing assets as a percentage of: |
|
|
|
|
|
|
|
|
||||||||||||
Loans held for investment and OREO |
|
0.96 |
% |
|
1.04 |
% |
|
0.70 |
% |
|
0.53 |
% |
|
0.59 |
% |
|
|
|
||
Total assets |
|
0.58 |
|
|
0.63 |
|
|
0.42 |
|
|
0.31 |
|
|
0.35 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||||||
Non-accrual loans to loans held for investment |
|
0.91 |
|
|
0.94 |
|
|
0.58 |
|
|
0.45 |
|
|
0.47 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||||||||
Accruing Loans 30-89 Days Past Due |
$ |
46.4 |
|
$ |
62.8 |
|
$ |
67.3 |
|
$ |
51.2 |
|
$ |
49.5 |
|
|
(26.1 |
)% |
(6.3 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
Criticized Loans: |
|
|
|
|
|
|
|
|
||||||||||||
Special Mention |
$ |
162.7 |
|
$ |
160.1 |
|
$ |
210.5 |
|
$ |
197.3 |
|
$ |
221.9 |
|
|
1.6 |
% |
(26.7 |
)% |
Substandard |
|
409.3 |
|
|
405.8 |
|
|
457.1 |
|
|
414.6 |
|
|
386.9 |
|
|
0.9 |
|
5.8 |
|
Doubtful |
|
46.0 |
|
|
64.1 |
|
|
20.7 |
|
|
21.0 |
|
|
32.8 |
|
|
(28.2 |
) |
40.2 |
|
Total |
$ |
618.0 |
|
$ |
630.0 |
|
$ |
688.3 |
|
$ |
632.9 |
|
$ |
641.6 |
|
|
(1.9 |
)% |
(3.7 |
)% |
|
|
|
|
|
|
|
|
|
||||||||||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Selected Ratios - Annualized (Unaudited) |
||||||||||||||||||||
|
At or for the Quarter ended: |
|
||||||||||||||||||
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
||||||||||
Annualized Financial Ratios (GAAP) |
|
|||||||||||||||||||
Return on average assets |
|
0.80 |
% |
|
|
0.77 |
% |
|
|
0.80 |
% |
|
|
0.94 |
% |
|
|
0.86 |
% |
|
Return on average common stockholders' equity |
|
7.55 |
|
|
|
7.28 |
|
|
|
7.77 |
|
|
|
9.20 |
|
|
|
8.44 |
|
|
Yield on average earning assets |
|
4.80 |
|
|
|
4.74 |
|
|
|
4.69 |
|
|
|
4.63 |
|
|
|
4.52 |
|
|
Cost of average interest-bearing liabilities |
|
2.39 |
|
|
|
2.39 |
|
|
|
2.24 |
|
|
|
2.09 |
|
|
|
1.88 |
|
|
Interest rate spread |
|
2.41 |
|
|
|
2.35 |
|
|
|
2.45 |
|
|
|
2.54 |
|
|
|
2.64 |
|
|
Efficiency ratio |
|
62.71 |
|
|
|
64.62 |
|
|
|
64.25 |
|
|
|
61.48 |
|
|
|
60.95 |
|
|
Loans held for investment to deposit ratio |
|
79.73 |
|
|
|
79.80 |
|
|
|
78.38 |
|
|
|
76.92 |
|
|
|
77.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized Financial Ratios - Operating** (Non-GAAP) |
|
|||||||||||||||||||
Net FTE interest margin ratio |
|
3.00 |
% |
|
|
2.93 |
% |
|
|
3.01 |
% |
|
|
3.07 |
% |
|
|
3.12 |
% |
|
Tangible book value per common share |
$ |
19.34 |
|
|
$ |
19.16 |
|
|
$ |
19.41 |
|
|
$ |
17.82 |
|
|
$ |
18.12 |
|
|
Tangible common stockholders' equity to tangible assets |
|
6.95 |
% |
|
|
6.92 |
% |
|
|
6.85 |
% |
|
|
6.38 |
% |
|
|
6.40 |
% |
|
Return on average tangible common stockholders' equity |
|
12.12 |
|
|
|
11.63 |
|
|
|
12.65 |
|
|
|
15.04 |
|
|
|
13.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Capital Ratios |
|
|||||||||||||||||||
Total risk-based capital to total risk-weighted assets |
|
13.80 |
% |
* |
|
13.64 |
% |
|
|
13.28 |
% |
|
|
13.19 |
% |
|
|
12.90 |
% |
|
Tier 1 risk-based capital to total risk-weighted assets |
|
11.53 |
|
* |
|
11.37 |
|
|
|
11.08 |
|
|
|
11.02 |
|
|
|
10.76 |
|
|
Tier 1 common capital to total risk-weighted assets |
|
11.53 |
|
* |
|
11.37 |
|
|
|
11.08 |
|
|
|
11.02 |
|
|
|
10.76 |
|
|
Leverage Ratio |
|
8.44 |
|
* |
|
8.28 |
|
|
|
8.22 |
|
|
|
8.22 |
|
|
|
7.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
*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 Average Balance Sheets (Unaudited) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended |
||||||||||||||||||||||
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 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) |
$ |
18,253.9 |
$ |
254.4 |
|
5.61 |
% |
|
$ |
18,289.2 |
$ |
253.6 |
|
5.58 |
% |
|
$ |
18,351.5 |
$ |
243.2 |
|
5.32 |
% |
Investment securities |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Taxable |
|
8,311.6 |
|
62.3 |
|
3.01 |
|
|
|
8,726.3 |
|
64.5 |
|
2.97 |
|
|
|
9,139.2 |
|
66.1 |
|
2.90 |
|
Tax-exempt |
|
187.8 |
|
0.8 |
|
1.71 |
|
|
|
189.0 |
|
0.9 |
|
1.92 |
|
|
|
192.9 |
|
1.0 |
|
2.08 |
|
Investment in FHLB and FRB stock |
|
185.5 |
|
3.3 |
|
7.16 |
|
|
|
198.3 |
|
3.3 |
|
6.69 |
|
|
|
225.2 |
|
3.4 |
|
6.06 |
|
Interest-bearing deposits in banks |
|
348.0 |
|
4.9 |
|
5.66 |
|
|
|
296.7 |
|
4.1 |
|
5.56 |
|
|
|
419.4 |
|
5.4 |
|
5.16 |
|
Federal funds sold |
|
0.1 |
|
— |
|
— |
|
|
|
0.1 |
|
— |
|
— |
|
|
|
0.6 |
|
— |
|
— |
|
Total interest-earning assets |
$ |
27,286.9 |
$ |
325.7 |
|
4.80 |
% |
|
$ |
27,699.6 |
$ |
326.4 |
|
4.74 |
% |
|
$ |
28,328.8 |
$ |
319.1 |
|
4.52 |
% |
Non-interest-earning assets |
|
2,853.7 |
|
|
|
|
2,825.6 |
|
|
|
|
2,958.8 |
|
|
|||||||||
Total assets |
$ |
30,140.6 |
|
|
|
$ |
30,525.2 |
|
|
|
$ |
31,287.6 |
|
|
|||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Demand deposits |
$ |
6,142.9 |
$ |
13.9 |
|
0.91 |
% |
|
$ |
6,150.2 |
$ |
12.9 |
|
0.84 |
% |
|
$ |
6,417.2 |
$ |
9.9 |
|
0.62 |
% |
Savings deposits |
|
7,760.3 |
|
40.8 |
|
2.11 |
|
|
|
7,781.8 |
|
39.1 |
|
2.02 |
|
|
|
7,951.3 |
|
28.4 |
|
1.43 |
|
Time deposits |
|
2,863.4 |
|
26.2 |
|
3.68 |
|
|
|
2,972.3 |
|
27.1 |
|
3.67 |
|
|
|
2,517.1 |
|
15.3 |
|
2.44 |
|
Repurchase agreements |
|
775.5 |
|
1.9 |
|
0.99 |
|
|
|
802.1 |
|
2.3 |
|
1.15 |
|
|
|
1,020.6 |
|
1.5 |
|
0.59 |
|
Other borrowed funds |
|
2,501.9 |
|
31.8 |
|
5.11 |
|
|
|
2,771.9 |
|
35.6 |
|
5.17 |
|
|
|
2,966.4 |
|
39.3 |
|
5.31 |
|
Long-term debt |
|
377.2 |
|
4.4 |
|
4.69 |
|
|
|
356.8 |
|
4.3 |
|
4.85 |
|
|
|
120.8 |
|
1.4 |
|
4.65 |
|
Subordinated debentures held by subsidiary trusts |
|
163.1 |
|
3.3 |
|
8.14 |
|
|
|
163.1 |
|
3.3 |
|
8.14 |
|
|
|
163.1 |
|
3.1 |
|
7.62 |
|
Total interest-bearing liabilities |
$ |
20,584.3 |
$ |
122.3 |
|
2.39 |
% |
|
$ |
20,998.2 |
$ |
124.6 |
|
2.39 |
% |
|
$ |
21,156.5 |
$ |
98.9 |
|
1.88 |
% |
Non-interest-bearing deposits |
|
5,868.7 |
|
|
|
|
5,832.2 |
|
|
|
|
6,521.9 |
|
|
|||||||||
Other non-interest-bearing liabilities |
|
492.3 |
|
|
|
|
466.4 |
|
|
|
|
426.3 |
|
|
|||||||||
Stockholders’ equity |
|
3,195.3 |
|
|
|
|
3,228.4 |
|
|
|
|
3,182.9 |
|
|
|||||||||
Total liabilities and stockholders’ equity |
$ |
30,140.6 |
|
|
|
$ |
30,525.2 |
|
|
|
$ |
31,287.6 |
|
|
|||||||||
Net FTE interest income (non-GAAP)(3) |
|
$ |
203.4 |
|
|
|
|
$ |
201.8 |
|
|
|
|
$ |
220.2 |
|
|
||||||
Less FTE adjustments (2) |
|
|
(1.7 |
) |
|
|
|
|
(1.7 |
) |
|
|
|
|
(1.8 |
) |
|
||||||
Net interest income from consolidated statements of income |
|
$ |
201.7 |
|
|
|
|
$ |
200.1 |
|
|
|
|
$ |
218.4 |
|
|
||||||
Interest rate spread |
|
|
2.41 |
% |
|
|
|
2.35 |
% |
|
|
|
2.64 |
% |
|||||||||
Net interest margin |
|
|
2.97 |
|
|
|
|
2.91 |
|
|
|
|
3.09 |
|
|||||||||
Net FTE interest margin (non-GAAP)(3) |
|
|
3.00 |
|
|
|
|
2.93 |
|
|
|
|
3.12 |
|
|||||||||
Cost of funds, including non-interest-bearing demand deposits (4) |
|
|
1.86 |
|
|
|
|
1.87 |
|
|
|
|
1.43 |
|
|||||||||
(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 Non-GAAP Financial Measures (Unaudited) |
||||||
|
|
|
|
|
|
|
|
|
As of or For the Quarter Ended |
||||
(In millions, except % and per share data) |
|
Jun 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Sep 30, 2023 |
Jun 30, 2023 |
Total common stockholders' equity (GAAP) |
(A) |
|
|
|
|
|
Less goodwill and other intangible assets (excluding mortgage servicing rights) |
|
1,202.9 |
1,206.6 |
1,210.3 |
1,214.1 |
1,218.0 |
Tangible common stockholders' equity (Non-GAAP) |
(B) |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
|
|
|
|
|
|
Less goodwill and other intangible assets (excluding mortgage servicing rights) |
|
1,202.9 |
1,206.6 |
1,210.3 |
1,214.1 |
1,218.0 |
Tangible assets (Non-GAAP) |
(C) |
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances: |
|
|
|
|
|
|
Total common stockholders' equity (GAAP) |
(D) |
|
|
|
|
|
Less goodwill and other intangible assets (excluding mortgage servicing rights) |
|
1,204.6 |
1,208.4 |
1,212.1 |
1,216.0 |
1,219.8 |
Average tangible common stockholders' equity (Non-GAAP) |
(E) |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
(F) |
|
|
|
|
|
FTE interest income |
|
1.7 |
1.7 |
1.7 |
1.7 |
1.8 |
Net FTE interest income (Non-GAAP) |
(G) |
203.4 |
201.8 |
209.5 |
215.4 |
220.2 |
Less purchase accounting accretion |
|
5.1 |
6.5 |
5.4 |
5.2 |
4.6 |
Adjusted net FTE interest income (Non-GAAP) |
(H) |
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets |
(I) |
|
|
|
|
|
Total quarterly average assets |
(J) |
30,140.6 |
30,525.2 |
30,507.7 |
30,752.3 |
31,287.6 |
Annualized net income available to common shareholders |
(K) |
241.3 |
234.9 |
244.0 |
288.4 |
268.7 |
Common shares outstanding |
(L) |
104,561 |
104,572 |
103,942 |
105,011 |
105,021 |
|
|
|
|
|
|
|
Return on average assets (GAAP) |
(K) / (J) |
0.80 % |
0.77 % |
0.80 % |
0.94 % |
0.86 % |
Return on average common stockholders' equity (GAAP) |
(K) / (D) |
7.55 |
7.28 |
7.77 |
9.20 |
8.44 |
Average common stockholders' equity to average assets (GAAP) |
(D) / (J) |
10.60 |
10.58 |
10.29 |
10.19 |
10.17 |
Book value per common share (GAAP) |
(A) / (L) |
|
|
|
|
|
Tangible book value per common share (Non-GAAP) |
(B) / (L) |
19.34 |
19.16 |
19.41 |
17.82 |
18.12 |
Tangible common stockholders' equity to tangible assets (Non-GAAP) |
(B) / (C) |
6.95 % |
6.92 % |
6.85 % |
6.38 % |
6.40 % |
Return on average tangible common stockholders' equity (Non-GAAP) |
(K) / (E) |
12.12 |
11.63 |
12.65 |
15.04 |
13.69 |
Net interest margin (GAAP) |
(F*) / (I) |
2.97 |
2.91 |
2.99 |
3.05 |
3.09 |
Net FTE interest margin (Non-GAAP) |
(G*) / (I) |
3.00 |
2.93 |
3.01 |
3.07 |
3.12 |
Adjusted FTE net interest margin (Non-GAAP) |
(H*) / (I) |
2.92 |
2.84 |
2.94 |
3.00 |
3.05 |
|
|
|
|
|
|
|
*Annualized |
||||||
(FIBK-ER)
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725569971/en/
David Della Camera, CFA
Deputy Chief Financial Officer
First Interstate BancSystem, Inc.
(406) 255-5363
investor.relations@fib.com
www.FIBK.com
Source: First Interstate BancSystem, Inc.
FAQ
What were First Interstate BancSystem's earnings for Q2 2024?
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