NASDAQ$FIBK

First Interstate BancSystem Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported financial results for the second quarter of 2022.

First Interstate BancSystem reported a net income of $64.1 million, or $0.59 per share, for the second quarter of 2022, driven by an increase in net interest income and a $1.7 million reduction in credit losses, and the completion of the merger and core system conversion of GWB on May 23, 2022.

  • Completed the merger and core system conversion of GWB on May 23, 2022, which we anticipate will result in cost savings in the second half of 2022.
  • Net income of $64.1 million, or $0.59 per share, driven by an increase in net interest income and a $1.7 million reduction in credit losses.
  • Net interest margin ratio, on a fully taxable equivalent basis, increased to 3.25% for the second quarter of 2022, a 45 basis point increase from the first quarter of 2022.
  • Efficiency ratio of 71.4% for the second quarter of 2022 compared to 89.6% for the first quarter of 2022.

Headline financials

Total Revenue

$289M

Previous: $154M+87.5%
EPS (adj)

$0.59

Previous: $0.69-14.5%
Net Interest Margin

3.3%

Previous: 2.8%+15.2%
Efficiency Ratio

71.4%

Previous: 62.6%+14.0%
Tangible Book Value / Share

$18.92

No prior period
Free Cash Flow

$64.1M

Previous: $42.5M+50.8%
Net Income

$64.1M

Previous: $42.5M+50.8%
Operating Income

$172M

Previous: $116M+47.5%
Gross Profit

$289M

Previous: $154M+87.5%
Cash & Equivalents

$1.06B

Previous: $2.01B-47.2%
Total Assets

$32.1B

Previous: $18.9B+69.3%
Stock-Based Comp

$3.8M

Previous: $3.1M+22.6%

Revenue & EPS history

First Interstate · Revenue · Quarterly

$289M

Q2 2022+87.5%vs Q2 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

First Interstate · $44.8M total across 5 segments · Q2 2022

  • Payment Services
    $19.5M+71.1%
  • Wealth Management
    $9.3M+47.6%
  • Other Income
    $7.4M+184.6%
  • Mortgage Banking
    $5M-47.9%
  • Other Service Charges
    $3.6M+125.0%

Forward guidance

First Interstate BancSystem anticipates a continuation of the positive trends in loan growth and margin expansion, with synergies from the Great Western system conversion expected to further improve profitability.

Tailwinds

  • Expect to see a continuation of the positive trends in loan growth
  • Expect to see a continuation of the positive trends in margin expansion
  • Synergies projected for this transaction, which should lead to further improvement in our profitability.
  • Well positioned to generate profitable growth
  • Well positioned to further enhance the value of our franchise in the years ahead

Headwinds

  • New, or changes in, governmental regulations or policies
  • 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 the Community Reinvestment Act and fair lending laws, the USA PATRIOT ACT, 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’s guidelines and regulations

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 2022

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro