NASDAQ$FIBK

First Interstate BancSystem Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Net income reported a decrease compared to the previous year, but an increase compared to the previous quarter. Mortgage banking revenues and non-interest-bearing deposits increased.

First Interstate BancSystem, Inc. reported net income of $36.7 million, or $0.58 per share, for the second quarter of 2020. This compares to net income of $29.3 million, or $0.45 per share, for the first quarter of 2020, and $37.9 million, or $0.59 per share, for the second quarter of 2019.

  • Mortgage banking revenues increased 30.3% compared to Q1 2020 and 57.8% compared to Q2 2019.
  • Non-performing assets decreased $7.2 million, or 10.1%, from Q1 2020 and decreased $9.7 million, or 13.1%, from Q2 2019.
  • Non-interest-bearing deposits increased $1,117.3 million, or 33.8%, compared to Q1 2020 and $1,053.7 million, or 31.2%, compared to Q2 2019.
  • Criticized loans decreased $33.9 million, compared to the first quarter of 2020 and $47.9 million, compared to the second quarter of 2019.

Headline financials

Total Revenue

$162M

Previous: $165M-1.5%
EPS (adj)

$0.58

Previous: $0.75-22.7%
Net Interest Margin

3.5%

No prior period
Efficiency Ratio

57.3%

No prior period
Leverage Ratio

9.2%

No prior period
Free Cash Flow

$36.7M

Previous: $37.9M-3.2%
Net Income

$36.7M

Previous: $37.9M-3.2%
Operating Income

$126M

Previous: $105M+19.6%
Gross Profit

$162M

Previous: $164M-0.9%
Cash & Equivalents

$1.42B

Previous: $1.13B+26.5%
Total Assets

$16.5B

Previous: $14.4B+14.3%
Stock-Based Comp

$2.4M

Previous: $2.7M-11.1%

Revenue & EPS history

First Interstate · Revenue · Quarterly

$162M

Q2 2020-1.5%vs Q2 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

First Interstate · $36.8M total across 5 segments · Q2 2020

  • Mortgage Banking
    $14.2M+57.8%
  • Payment Services
    $9.3M-11.4%
  • Wealth Management
    $5.4M-6.9%
  • Other Income
    $4.3M-15.7%
  • Service Charges
    $3.6M-33.3%

Forward guidance

The Company believes its overall financial performance will remain relatively consistent over the second half of the year and that they remain well positioned to manage through the continuation of the pandemic, with high levels of capital and liquidity.

Tailwinds

  • Well positioned to manage through the continuation of the pandemic.
  • High levels of capital and liquidity.
  • Executing well on the technology initiatives that are strengthening infrastructure.
  • Improving scalability.
  • Enabling to continually offer new digital banking features to our clients.

Headwinds

  • Low interest rate environment presents challenges for revenue growth.
  • Caution on the part of commercial borrowers presents challenges for revenue growth.
  • Mortgage servicing impairments of $5.5 million.
  • Service charges on deposit accounts decreased $1.8 million, or 33.3%
  • COVID-19

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 Q2 2020

Historical avgQ2 2020

-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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