NASDAQ$FIBK

First Interstate BancSystem Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

First Interstate reported first quarter earnings, with results generally in-line with expectations.

First Interstate BancSystem, Inc. reported a net income of $58.4 million, or $0.57 per share, for the first quarter of 2024. The results were generally in line with expectations, positioning the company well for the remainder of the year. The company's board of directors declared a dividend of $0.47 per common share.

  • Criticized loans decreased $58.3 million, driven by loan upgrades and payoffs.
  • Non-performing assets increased $61.6 million, driven primarily by one non-accrual commercial and industrial loan relationship.
  • Loans held for investment decreased $76.8 million, driven by seasonal declines in agriculture loans.
  • Total deposits decreased $513.1 million, primarily due to seasonal declines in business deposits and selective run-off of two higher-cost municipal accounts.

Headline financials

Total Revenue

$242M

Previous: $255M-5.1%
EPS

$0.57

Previous: $0.54+5.6%
Net Interest Margin

2.9%

Previous: 3.4%-13.4%
Net Int. Margin (FTE)

2.9%

No prior period
Adj. Net Int. Margin (FTE)

2.8%

No prior period
Loan Charge-offs % Avg Loans

0.2%

No prior period
Non-perf. Assets to Loans+OREO

1.0%

No prior period
Non-perf. Assets to Total Assets

0.6%

No prior period
Non-accrual Loans to Loans

0.9%

No prior period
Return on Avg Assets

0.8%

No prior period
Return on Avg Equity

7.3%

No prior period
Yield on Earning Assets

4.7%

No prior period
Cost of Interest Liabilities

2.4%

No prior period
Interest Rate Spread

2.4%

No prior period
Efficiency Ratio

64.6%

No prior period
Loan to Deposit Ratio

79.8%

No prior period
Tangible Equity to Tang. Assets

6.9%

No prior period
ROAE - Tangible

11.6%

No prior period
Total Risk-based Capital

13.6%

No prior period
Tier 1 Capital Ratio

11.4%

No prior period
Tier 1 Common Capital Ratio

11.4%

No prior period
Leverage Ratio

8.3%

No prior period
Free Cash Flow

$58.4M

Previous: $56.3M+3.7%
Net Income

$58.4M

Previous: $56.3M+3.7%
Operating Income

$66.5M

Previous: $122M-45.3%
Gross Profit

$242M

Previous: $255M-5.1%
Cash & Equivalents

$635M

Previous: $1.08B-41.2%
Total Assets

$30.1B

Previous: $31.6B-4.7%

Revenue & EPS history

First Interstate · Revenue · Quarterly

$242M

Q1 2024-5.1%vs Q1 2023
Beat estimate in 5 of 15 quarters(33%)
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, Inc. expects to continue to generate improvements in capital ratios and maintain a healthy dividend for shareholders. They remain confident in their ability to generate solid returns, given strong levels of capital and liquidity, adequate allowance for credit loss levels, and continued expense control.

Tailwinds

  • Strong levels of capital
  • Strong liquidity
  • Adequate allowance for credit loss levels
  • Continued expense control
  • Expected improvements in capital ratios

Headwinds

  • 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
  • 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 2024

Historical avgQ1 2024

-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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