NASDAQ$FIBK

First Interstate BancSystem Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong financial results driven by franchise and balance sheet strength, despite macroeconomic challenges, with positive trends in deposits, net interest margin stability, lower expenses, improved asset quality, and increased regulatory capital ratios.

First Interstate BancSystem, Inc. reported a net income of $72.7 million, or $0.70 per share, for the third quarter of 2023. Total deposits increased by $100.3 million, and asset quality improved, leading to a decrease in criticized loans. The company's common equity tier 1 capital ratio also increased.

  • Net income was $72.7 million, or $0.70 per share.
  • Total deposits increased by $100.3 million, or 0.4%, reaching $23,679.5 million.
  • Net interest margin decreased to 3.05%.
  • Asset quality improved, with an $8.7 million decrease in criticized loans.

Headline financials

Total Revenue

$256M

Previous: $290M-11.7%
EPS (adj)

$0.70

Previous: $0.80-12.5%
Net Interest Margin

3.0%

Previous: 3.7%-17.8%
Free Cash Flow

$72.7M

Previous: $85.7M-15.2%
Net Income

$72.7M

Previous: $85.7M-15.2%
Operating Income

$91.1M

Previous: $194M-53.1%
Gross Profit

$256M

Previous: $290M-11.7%
Cash & Equivalents

$591M

Previous: $592M-0.1%
Total Assets

$30.5B

Previous: $31.3B-2.6%
Stock-Based Comp

$3.6M

Previous: $2.5M+44.0%

Revenue & EPS history

First Interstate · Revenue · Quarterly

$256M

Q3 2023-11.7%vs Q3 2022
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

The company will remain conservative in new loan production but believes it is a favorable environment to add new commercial and retail customers.

Tailwinds

  • Adding new commercial and retail customers
  • Financial strength
  • Breadth of products and services
  • Superior level of service
  • Enhance ability to generate long-term profitable growth

Headwinds

  • Larger macroeconomic trends
  • Challenges for the broader banking industry
  • Conservative in our new loan production
  • Impact of inflation
  • Potential recession

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 Q3 2023

Historical avgQ3 2023

-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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