NASDAQ$FIBK

First Interstate BancSystem Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a net loss due to acquisition costs related to Great Western Bancorp, but saw positive trends in net interest margin and loan pipeline.

First Interstate BancSystem, Inc. reported a net loss of $33.4 million, or $0.36 per share, for the first quarter of 2022, which includes pre-tax acquisition costs of $65.2 million related to the acquisition of Great Western Bancorp, Inc. Excluding these costs, the company saw strong earnings driven by expansion in net interest margin and a strong loan pipeline.

  • Successfully completed the acquisition of Great Western on February 1, 2022, for approximately $1.7 billion.
  • Total assets increased $13,490.3 million, or 68.6%, to $33,162.2 million as of March 31, 2022, primarily due to assets acquired from GWB.
  • Net interest margin ratio increased to 2.80% for the first quarter of 2022, an 11 basis point increase from the fourth quarter of 2021.
  • All credit metrics for the legacy FIBK loan portfolio showed sequential improvement, and credit metrics for the acquired GWB loan portfolio showed meaningful improvement compared with expectations at deal announcement.

Headline financials

Total Revenue

$227M

Previous: $159M+43.1%
EPS (adj)

-$0.36

Previous: $0.83-143.4%
Net Interest Margin

2.8%

Previous: 3.0%-7.9%
Efficiency Ratio

89.6%

Previous: 60.4%+48.4%
Tangible Book Value / Share

$19.78

No prior period
Free Cash Flow

-$33.4M

Previous: $51.4M-165.0%
Net Income

-$33.4M

Previous: $51.4M-165.0%
Operating Income

$92.3M

Previous: $121M-23.9%
Gross Profit

$227M

Previous: $159M+43.1%
Cash & Equivalents

$3.81B

Previous: $2.26B+68.9%
Total Assets

$33.2B

Previous: $18.4B+79.8%
Stock-Based Comp

$2.4M

Previous: $2.4M+0.0%

Revenue & EPS history

First Interstate · Revenue · Quarterly

$227M

Q1 2022+43.1%vs Q1 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

First Interstate · $31.3M total across 3 segments · Q1 2022

  • Payment Services
    $14.8M
  • Mortgage Banking
    $8.4M
  • Wealth Management
    $8.1M

Forward guidance

The company expects the integration of Great Western to proceed smoothly and remains on track to realize the cost savings projected for the transaction during the second half of the year. They also anticipate that the resolution of credit quality issues will be less of a headwind to total loan growth than initially expected, and the loan pipeline remains strong.

Tailwinds

  • Integration of Great Western proceeding smoothly.
  • On track to realize cost savings from the acquisition in the second half of the year.
  • Resolution of credit quality issues expected to be less of a headwind to loan growth than initially anticipated.
  • Loan pipeline remains strong.
  • Anticipate continued favorable shifts in mix of earning assets and positive trends in level of profitability.

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 2022

Historical avgQ1 2022

-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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