NASDAQ$FIBK

First Interstate BancSystem Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong first quarter earnings driven by healthy economic activity, deposit inflows, and reductions in problem loan categories.

First Interstate BancSystem, Inc. reported a strong first quarter with net income of $51.4 million, or $0.83 per share, compared to $29.3 million, or $0.45 per share, for the first quarter of 2020. The company saw increases in total deposits and total assets, along with decreases in non-performing assets and criticized loans.

  • Total deposits increased by $877.0 million, or 6.2%, to $15,094.0 million as of March 31, 2021.
  • Total assets increased by $794.7 million, or 4.5%, to $18,443.4 million as of March 31, 2021.
  • Non-performing assets decreased by $6.9 million, or 13.7%, to $43.6 million as of March 31, 2021.
  • The Company funded approximately 6,000 loans as part of the Payroll Protection Program, or PPP, for $436.6 million during the first quarter of 2021.

Headline financials

Total Revenue

$159M

Previous: $167M-4.8%
EPS (adj)

$0.83

Previous: $0.45+84.4%
Net Interest Margin

3.0%

Previous: 3.9%-22.1%
Efficiency Ratio

60.4%

Previous: 58.4%+3.4%
Total Risk-based Capital

14.0%

No prior period
Tier 1 Capital Ratio

12.3%

No prior period
Leverage Ratio

8.1%

No prior period
Free Cash Flow

$51.4M

Previous: $29.3M+75.4%
Net Income

$51.4M

Previous: $29.3M+75.4%
Operating Income

$121M

Previous: $122M-0.4%
Gross Profit

$159M

Previous: $165M-3.9%
Cash & Equivalents

$2.26B

Previous: $869M+159.7%
Total Assets

$18.4B

Previous: $14.4B+28.0%
Stock-Based Comp

$2.4M

Previous: $1.4M+71.4%

Revenue & EPS history

First Interstate · Revenue · Quarterly

$159M

Q1 2021-4.8%vs Q1 2020
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

First Interstate · $39.8M total across 6 segments · Q1 2023

  • Payment Services
    $18.7M+26.4%
  • Wealth Management
    $9M+11.1%
  • Service Charges
    $5.2M
  • Other Service Charges
    $2.4M
  • Mortgage Banking
    $2.3M-72.6%
  • Other Income
    $2.2M

Forward guidance

First Interstate BancSystem anticipates stronger loan growth throughout the remainder of 2021, excluding PPP loan runoff, which should lead to higher net interest income and strong financial performance.

Tailwinds

  • Expects stronger loan growth as we move through the year.
  • Anticipates higher net interest income.
  • Projects continued strong financial performance over the remainder of 2021.
  • Sees improving loan demand.
  • Clients are looking to invest in projects to capitalize on strong economic activity.

Headwinds

  • Potential impact of new or changes in governmental regulations.
  • Risk of tax legislative initiatives or assessments.
  • Exposure to more stringent capital requirements.
  • Potential heightened regulatory requirements resulting from total assets exceeding $10 billion.
  • Risk of changes in accounting standards.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-1.1%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+1.1%

Avg return

30 days after

42%

27 / 64 earnings

Positive

+8.9%

Q3 2023

Best reaction

-11.8%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.5%+4.3%+3.4%
Q4 2025-1.5%+2.6%-5.6%
Q3 2025-1.9%-1.3%+2.3%
Q1 2025-5.7%-3.9%-2.3%
Q3 2024-3.2%-1.7%+7.6%
Q2 2024+2.4%+0.6%-2.8%
Q1 2024+1.6%+2.1%+2.2%
Q4 2023-6.4%-10.2%-10.5%
Q3 2023+8.9%+7.5%+17.3%
Q2 2023+3.4%+4.0%-8.5%
Q1 2023-0.5%-3.8%-10.9%
Q4 2022-11.8%-5.8%-5.7%
Q3 2022+3.3%+6.5%+4.0%
Q2 2022+0.5%+1.3%+1.1%
Q1 2022-2.5%+6.3%+14.2%
Q4 2021-5.9%-3.1%+0.4%
Q3 2021-0.4%-2.6%+0.6%
Q2 2021-2.4%-0.4%+4.2%
Q1 2021-1.9%-2.8%-2.9%
Q4 2020-2.8%-0.1%+14.1%
Q3 2020-1.2%-4.1%+10.3%
Q2 2020-3.2%-3.8%+6.5%
Q1 2020-7.5%-7.8%-9.2%
Q4 2019+1.2%+0.1%-11.9%
Q3 2019-0.2%+0.1%-1.6%
Q2 2019+0.3%-1.4%-2.9%
Q1 2019-1.0%-0.7%-9.9%
Q4 2018+0.1%+2.2%+7.9%
Q3 2018-0.2%-0.3%+1.3%
Q2 2018+0.5%-0.7%+6.1%
Q1 2018+1.6%-0.6%+8.1%
Q4 2017+0.1%-0.2%-5.3%
Q3 2017+1.3%+0.0%+4.4%
Q2 2017-1.1%-1.9%-3.9%
Q1 2017+0.9%-5.7%-9.7%
Q4 2016+0.7%-1.6%+5.7%
Q3 2016+0.8%+0.5%+18.2%
Q2 2016+2.0%+2.0%+6.1%
Q1 2016-2.9%
Q4 2015+2.9%
Q3 2015-4.8%
Q2 2015+1.0%
Q1 2015-1.0%
Q4 2014-3.8%
Q3 2014+2.2%
Q2 2014-0.2%
Q1 2014-3.9%
Q4 2013-4.3%
Q3 2013+2.3%
Q2 2013+3.4%
Q1 2013+1.8%
Q4 2012+4.7%
Q3 2012+2.7%
Q2 2012-1.1%
Q1 2011+1.5%
Q1 2012+0.9%
Q4 2011-2.4%
Q4 2009-2.4%
Q3 2010-4.5%
Q3 2011-4.5%
Q2 2010-7.6%
Q4 2010-7.6%
Q2 2011-7.6%
Q1 2010-0.1%

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