First Interstate BancSystem, Inc. (NASDAQ: FIBK) (the “Company”)
today reported financial results for the fourth quarter of 2024.
For the quarter, the Company reported net income of $52.1 million,
or $0.50 per diluted share, which compares to net income of $55.5
million, or $0.54 per diluted share, for the third quarter of 2024
and net income of $61.5 million, or $0.59 per diluted share, for
the fourth quarter of 2023.
For the year ended December 31, 2024, the Company reported net
income of $226.0 million, or $2.19 per diluted share, compared to
$257.5 million, or $2.48 per diluted share, for the year ended
December 31, 2023.
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 to 3.20% 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, or 18.6%, to
$145.6 million as of December 31, 2024, from $178.9 million as of
September 30, 2024 and increased $17.8 million, or 13.9%, from
$127.8 million as of December 31, 2023.
- Criticized loans increased $170.0 million to $773.3 million as
of December 31, 2024, compared to $603.3 million as of September
30, 2024, driven mostly by downgrades in the commercial real estate
loan portfolio, and increased $85.0 million, compared to $688.3
million as of December 31, 2023.
- For the fourth quarter of 2024 net charge-offs of $55.2 million
or 1.22 basis points of average loans included a commercial and
industrial loan for $49.3 million. Net charge-offs within the
remaining portfolio totaled $5.9 million or 0.13% of average
loans.
- Other borrowed funds decreased $512.5 million, or 24.6%, to
$1,567.5 million as of December 31, 2024, from $2,080.0 million as
of September 30, 2024 and decreased $1,035.5 million from December
31, 2023. The decreases are primarily the result of the Company’s
pay-off of the $1.0 billion Bank Term Funding Program borrowing in
December 2024 using a combination of excess cash and lower-rate
FHLB advances after the fed funds rate cut in December 2024.
- Total deposits increased by $151.5 million at December 31, 2024
from September 30, 2024, with interest-bearing demand deposits
increasing by $233.8 million and non-interest bearing deposits
decreasing by $121.4 million.
- Non-interest expense increased $1.5 million for the fourth
quarter of 2024, compared to the third quarter of 2024 and
decreased $5.1 million compared to the fourth quarter of 2023. The
third quarter of 2024 non-interest expense included $3.8 million
related to the transition of the Company’s President and Chief
Executive Officer; excluding the former CEO severance expenses,
non-interest expense increased $5.3 million compared to the third
quarter of 2024, primarily due to an increase in professional
services, short-term incentive accruals, health insurance costs,
and occupancy costs.
- Efficiency ratio of 60.2% for the fourth quarter of 2024
compared to 61.8% 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%
to 12.16%, 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 3% in the fourth quarter. Growth in
deposits exceeded our expectations and we were able to take
advantage of the flexibility of our BTFP borrowings to reduce our
funding costs. Charge-offs were elevated this quarter, driven by a
previously reported, non-performing commercial and industrial loan.
The team working this loan did well adhering to agreed upon
resolution options, finding the best available outcome, and
allowing us to move forward,” said James A. Reuter, President and
Chief Executive Officer of First Interstate BancSystem, Inc. “As I
approach the 90-day mark since I joined First Interstate, I have
had the opportunity to visit many of our markets and am impressed
to see a strong, client-centric, community Bank. I look forward to
working with the team at First Interstate to build upon the core
strengths of this institution and, ultimately, to drive long-term
shareholder value.”
DIVIDEND DECLARATION
On January 28, 2025, the Company’s board of directors declared a
dividend of $0.47 per common share, payable on February 20, 2025,
to common stockholders of record as of February 10, 2025. The
dividend equates to a 5.8% annualized yield based on the $32.53 per
share average closing price of the Company’s common stock as
reported on NASDAQ during the fourth quarter of 2024.
NET INTEREST INCOME
Net interest income increased $8.8 million, or 4.3%, to $214.3
million, during the fourth quarter of 2024, compared to net
interest income of $205.5 million during the third quarter of 2024,
primarily due to a decrease in interest expense resulting from a
decrease in average debt balances and purchase accounting accretion
and interest recoveries attributable to non-accrual loan paydowns.
Net interest income increased $6.5 million, or 3.1%, during the
fourth quarter of 2024 compared to the fourth quarter of 2023,
primarily due to an increase in interest and fees on loans and
interest bearing deposits, and a decrease in interest expense
resulting from decreased rates on borrowings along with a decrease
in average debt balances, partially offset by lower interest income
on investment securities as a result of a decrease in average
investment security balances in the fourth quarter of 2024.
- 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, and $5.4 million, respectively.
The net interest margin ratio was 3.18% for the fourth quarter
of 2024, compared to 3.01% during the third quarter of 2024, and
2.99% during the fourth quarter of 2023. The net FTE interest
margin ratio2 was 3.20% for the fourth quarter of 2024, compared to
3.04% during the third quarter of 2024, and 3.01% during the fourth
quarter of 2023. Excluding interest accretion from the fair value
of acquired loans, on a quarter-over-quarter basis, the adjusted
net interest margin ratio (FTE)2, was 3.08%, an increase of 11
basis points from the prior quarter, primarily driven by lower
interest expense resulting from decreased borrowings. Excluding
interest accretion from the fair value of acquired loans, on a
year-over-year basis, the adjusted net interest margin ratio (FTE)
increased 14 basis points, primarily as a result of lower interest
expense resulting from decreased rates on borrowings and a
favorable change in the mix of earning assets.
___________ 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 $33.7 million. This compares to a
provision for credit losses of $19.8 million and $5.4 million
during the third quarter of 2024 and during the fourth quarter of
2023, respectively.
For the fourth quarter of 2024, net charge-offs were $55.2
million, or an annualized 1.22% of average loans outstanding,
compared to net charge-offs of $27.4 million, or an annualized
0.60% of average loans outstanding, for the third quarter of 2024
and net charge-offs of $4.8 million, or an annualized 0.10% of
average loans outstanding, for the fourth quarter of 2023. Net loan
charge-offs in the fourth quarter of 2024 were composed of
charge-offs of $58.3 million, primarily consisting of a $49.3
million commercial and industrial loan for which a specific reserve
of $26.5 million was held, which was offset by recoveries of $3.1
million.
The Company’s allowance for credit losses as a percentage of
period-end loans held for investment was 1.14% at December 31,
2024, compared to 1.25% at September 30, 2024 and 1.25% at December
31, 2023. Excluding the commercial and industrial loan specific
reserve of $26.5 million, the Company’s allowance for credit losses
as a percentage of period-end loans held for investment increased
four basis points compared to September 30, 2024. Coverage of
non-performing loans increased to 144.4% at December 31, 2024,
compared to 129.2% at September 30, 2024 and decreased from 204.6%
at December 31, 2023.
NON-INTEREST INCOME
For the Quarter Ended
(Dollars in millions)
Dec 31, 2024
Sep 30, 2024
$ Change
% Change
Dec 31, 2023
$ 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 $47.0 million for the fourth quarter of
2024, increasing $0.6 million compared to the third quarter of 2024
and increasing $2.5 million compared to the fourth quarter of 2023.
The increase was primarily due to wealth management revenues as a
result of an increase in trust fees which was partially offset by a
decrease in payment services revenues as a result of decreased
interchange fees driven by lower transaction volume during the
fourth quarter of 2024.
NON-INTEREST EXPENSE
For the Quarter Ended
(Dollars in millions)
Dec 31, 2024
Sep 30, 2024
$ Change
% Change
Dec 31, 2023
$ 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 $160.9 million for the
fourth quarter of 2024, an increase of $1.5 million from the third
quarter of 2024 and a decrease of $5.1 million from the fourth
quarter of 2023. Expenses for the third quarter included $3.8
million related to the former CEO severance costs.
Salary and wages expense decreased $2.4 million and increased
$4.5 million during the fourth quarter of 2024 compared to the
third quarter of 2024 and the fourth quarter of 2023, respectively.
The decrease when compared to the third quarter of 2024 was
primarily due to the third quarter accrual of $3.8 million related
to the former CEO severance costs which were partially offset by
$1.4 million of short-term incentive accruals in the fourth
quarter. The increase when compared to the fourth quarter of 2023
was primarily due to $8.3 million in short-term incentive accruals
and $1.2 million of deferred loan costs, which were partially
offset by lower salaries and wages totaling $4.6 million and higher
severance costs as a result of the reduction in work force in
December 2023.
Employee benefit expenses increased $0.8 million and $7.0
million during the fourth quarter of 2024 compared to the third
quarter of 2024 and the fourth quarter of 2023, respectively. The
increase compared to the fourth quarter of 2023 was primarily due
to higher, normalized long-term incentive accruals of $6.0 million,
due to decreased incentive accruals in 2023, and $1.6 million in
health insurance costs.
Other expenses increased $1.8 million during the fourth quarter
of 2024 compared to the third quarter of 2024, primarily due to
professional fees. Other expenses decreased $17.0 million during
the fourth quarter of 2024 compared to the fourth quarter of 2023,
primarily due to a decrease of $11.3 million of FDIC insurance
premiums driven by the FDIC special assessment included in the
fourth quarter of 2023 and lower credit card reward accruals and
donation expenses.
BALANCE SHEET
Total assets decreased $458.1 million, or 1.5%, to $29,137.4
million as of December 31, 2024, from $29,595.5 million as of
September 30, 2024, primarily due to decreases in investment
securities and loans, which were partially offset by an increase in
cash and cash equivalents. Total assets decreased $1,533.8 million,
or 5.0%, from $30,671.2 million as of December 31, 2023, primarily
due to decreases in investment securities and loans, which were
partially offset by an increase in cash and cash equivalents, which
supported declines in other borrowed funds, deposits, and
securities sold under repurchase agreements.
Investment securities decreased $531.0 million, or 6.4%, to
$7,744.6 million as of December 31, 2024, from $8,275.6 million as
of September 30, 2024, primarily resulting from called securities,
normal pay-downs and maturities, and a $91.2 million decrease in
fair market values of investment securities during the period.
Investment securities decreased $1,304.8 million, or 14.4%, from
$9,049.4 million as of December 31, 2023, primarily resulting from
normal pay-downs and maturities, partially offset by a $43.3
million increase in fair market values during the period.
The following table presents the composition and comparison of
loans held for investment as of the quarters-ended:
Dec 31, 2024
Sep 30, 2024
$ Change
% Change
Dec 31, 2023
$ 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 77.5%, as
of December 31, 2024, compared to 78.8% as of September 30, 2024
and 78.4% as of December 31, 2023.
Total deposits increased $151.5 million to $23,015.6 million as
of December 31, 2024, from $22,864.1 million as of September 30,
2024, with increases in all interest-bearing categories, which were
partially offset by a decrease in non-interest-bearing deposits.
Total deposits decreased $307.5 million, or 1.3%, from $23,323.1
million as of December 31, 2023, with decreases in all types of
deposits except for savings and time, $250 and over.
Securities sold under repurchase agreements decreased $33.3
million, or 6.0%, to $523.9 million as of December 31, 2024, from
$557.2 million as of September 30, 2024, and decreased $258.8
million, or 33.1%, from $782.7 million as of December 31, 2023,
resulting from normal fluctuations in the liquidity needs of the
Company’s clients.
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 $512.5 million, or 24.6%, to $1,567.5 million as of
December 31, 2024, from $2,080.0 million as of September 30, 2024.
The decrease was funded by the repayment of the Bank Term Funding
Program borrowing of $1.0 billion supported by higher levels of
deposits, cash flows from amortizing investment securities, lower
recorded loans, and borrowings of FHLB advances. Other borrowed
funds decreased $1,035.5 million from December 31, 2023 as a result
of the Company’s pay-off of wholesale borrowings in December
2024.
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 $49.0 million, or
$0.47 per share.
CREDIT QUALITY
As of December 31, 2024, non-performing assets decreased $33.3
million, or 18.6%, to $145.6 million, compared to $178.9 million as
of September 30, 2024, primarily due to a decrease in non-accrual
loans partially offset by an increase in accruing loans past due 90
days or more. The decrease in non-accrual loans was primarily due
to a $49.3 million commercial and industrial loan relationship
charge off and the payoff of a $22.2 million of agricultural loan,
which was partially offset by the movement of a $18.9 million
agricultural loan, $12.2 million of commercial real estate loans,
$3.2 million of commercial loans, and $3.2 million of construction
real estate loans to non-accrual during the fourth quarter of
2024.
Criticized loans increased $170.0 million, or 28.2%, to $773.3
million as of December 31, 2024, from $603.3 million as of
September 30, 2024, primarily as a result of downgrades of $200.0
million of commercial real estate loans and commercial loans of
$52.9 million, driven primarily by four relationships. The increase
was partially offset by $49.3 million and $3.5 million of
charge-offs related to commercial and commercial real estate loans,
respectively, the payoff of $22.2 million of agricultural loans,
and commercial real estate loan upgrades of $10.4 million.
NON-GAAP FINANCIAL MEASURES
In addition to results presented in accordance with accounting
principles generally accepted in the United States of America, or
GAAP, this press release contains the following non-GAAP financial
measures that management uses to evaluate our performance relative
to our capital adequacy standards: (i) tangible common
stockholders’ equity; (ii) tangible assets; (iii) tangible book
value per common share; (iv) tangible common stockholders’ equity
to tangible assets; (v) average tangible common stockholders’
equity; (vi) return on average tangible common stockholders’
equity; (vii) net FTE interest income; (viii) net FTE interest
margin ratio; (ix) adjusted net FTE interest income; and (x)
adjusted net FTE interest margin ratio. Tangible common
stockholders’ equity is calculated as total common stockholders’
equity less goodwill and other intangible assets (excluding
mortgage servicing rights). Tangible assets are calculated as total
assets less goodwill and other intangible assets (excluding
mortgage servicing rights). Tangible book value per common share is
calculated as tangible common stockholders’ equity divided by
common shares outstanding. Tangible common stockholders’ equity to
tangible assets is calculated as tangible common stockholders’
equity divided by tangible assets. Average tangible common
stockholders’ equity is calculated as average total stockholders’
equity less average goodwill and other intangible assets (excluding
mortgage servicing rights). Return on average tangible common
stockholders’ equity is calculated as annualized net income
available to common shareholders divided by average tangible common
stockholders’ equity. Net FTE interest income is calculated as net
interest income, adjusted to include its FTE interest income. Net
FTE interest margin ratio is calculated as net FTE interest income
divided by average interest-earning assets. Adjusted net FTE
interest income is calculated as net FTE interest income less
purchase accounting interest accretion on acquired loans. Adjusted
net FTE interest margin ratio is calculated as annualized adjusted
net FTE interest income divided by average interest earning assets.
These non-GAAP financial measures may not be comparable to
similarly titled measures reported by other companies because other
companies may not calculate these non-GAAP measures in the same
manner. They also should not be considered in isolation or as a
substitute for measures prepared in accordance with GAAP.
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 Billings, Montana, the Company operates
banking offices, including detached drive-up facilities, in
communities across Arizona, Colorado, Idaho, Iowa, Kansas,
Minnesota, Missouri, Montana, Nebraska, North Dakota, Oregon, South
Dakota, Washington, and Wyoming, in addition to offering online and
mobile banking services. Through our bank subsidiary, First
Interstate Bank, the Company delivers a comprehensive range of
banking products and services to individuals, businesses,
municipalities, and others throughout the Company’s market
areas.
FIRST INTERSTATE BANCSYSTEM,
INC. AND SUBSIDIARIES
Consolidated Statements of
Income
(Unaudited)
Quarter Ended
% Change
(In millions, except % and per share
data)
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
4Q24 vs 3Q24
4Q24 vs 4Q23
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 2023
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, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
4Q24 vs 3Q24
4Q24 vs 4Q23
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, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
4Q24 vs 3Q24
4Q24 vs 4Q23
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, $250 and over
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, $250 thousand and over, and brokered
deposits.
FIRST INTERSTATE BANCSYSTEM,
INC. AND SUBSIDIARIES
Credit Quality
(Unaudited)
% Change
(In millions, except %)
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
4Q24 vs
3Q24
4Q24 vs 4Q23
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, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
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 the United States from the COVID‑19
pandemic. The referenced relief ends on December 31, 2024, which
allows a total five-year phase-in of the impact of CECL on capital
and relief over the next two years for the impact on the allowance
for credit losses resulting from the COVID‑19 pandemic.
**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, 2024
Dec 31, 2023
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 21.00% tax
rate.
(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 $3.4 million and $1.3 million at December 31, 2024 and
December 31, 2023, respectively.
(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 21.00% tax
rate.
(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
First Interstate BancSys... (NASDAQ:FIBK)
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