First Interstate Bancsystem, Inc. · NASDAQ:FIBK
First Interstate Bancsystem — Debt Investor Presentation (March 2020)
23 slides from First Interstate Bancsystem's debt investor presentation, Mar 18, 2020
Slide 1: Investor Presentation March 2020
Investor Presentation March 2020
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve inherent risks and uncertainties. Any statements about our plans, objectiv
Slide 3: FIBK Overview
FIBK Overview OVERVIEW DESCRIPTION • Headquartered in Billings, MT and focused on regional community banking in Idaho, Montana, Oregon, South Dakota, Washington, and Headquarters Billings, MT Wyoming: • Over 145 banking offices Kroll Rating (Subordinated Notes) BBB • 238 ATMs, plus 24,000 MoneyPass
Slide 4: Investment Highlights
Investment Highlights • Experienced Management Team • Long Track Record of Profitability • Strong Core Deposit Funding • Conservative Credit Strategy which Limits Exposure to Large Losses • Diversified Client Base Tempers Economic Volatility • Substantial Insider Ownership Aligns Management With Sta
Slide 5: Executive Leadership Team
Executive Leadership Team Industry Years at Name Title Age Experience FIBK Kevin P. Riley President and Chief Executive Officer 60 30+ Years 7 Years James R. Scott* Chair of the Board 70 50+ Years 48 Years Marcy D. Mutch Chief Financial Officer 60 30+ Years 13 Years Renee L. Newman Chief Strategy Of
Slide 6: Building the First Interstate Franchise
Building the First Interstate Franchise 2018 Inland Northwest Bank, filling in April 2019 footprint in the PNW $826.8 million 20 Branches Idaho Independent Bank $725 million 11 Branches 2016 Community 1st Bank Flathead Bank of Bigfork $130 million 3 Branches $225 million 7 Branches FIBK IIBK 2017 CM
Slide 7: Attractive Markets
Attractive Markets Deposit Market Share and Branch Locations by State States South State / Metric Idaho Montana Oregon Washington Wyoming Dakota % of Market Deposits 5.13% 17.72% 2.39% .12% .32% 15.43% Deposit Market 6th 2nd 11th 13th 32nd 1st Share Rank Number of Branches 23 48 33 14 18 16 Total Po
Slide 8: Attractive Markets: Stable Employment
Attractive Markets: Stable Employment MONTANA WYOMING SOUTH DAKOTA WASHINGTON 3.4% 3.7% 3.2% 4.3% (RANKED 23RD) (RANKED 35TH) (RANKED 19TH) (RANKED 43RD) OREGON 3.7% (RANKED 34TH) IDAHO 2.9% (RANKED 12TH) Best 5 States 1 South Carolina 2.3% 2 Utah 2.3% 3 Vermont 2.3% 4 North Dakota 2.4% 5 Colorado 2
Slide 9: Historical Financial Performance Summary Results
Historical Financial Performance Summary Results Gross Loans ($000) Total Deposits ($000) vs. Loan/Deposits (%) Total Revenue ($000) $10,680,70 $11,663,500 $9,031,600 $644,900 $8,503,700 0 $9,934,871 $575,800 $7,614,355 $491,596 $7,376,110 $416,261 $5,478,544 74.27% 76.64% 79.62% 77.43% 2016Y 2017Y
Slide 10: Historical Financial Performance Summary Results
Historical Financial Performance Summary Results Net Income ($000) Earnings per Share ($) Tangible Book Value per Share ($) $2.83 $181,000 $2.75 $160,200 $19.96 $2.13 $2.05 $17.52 $16.92 $16.04 $106,521 $95,636 2016Y 2017Y 2018Y 2019Y 2016Y 2017Y 2018Y 2019Y 2016Y 2017Y 2018Y 2019Y ROAA (%) ROAE (%)
Slide 11: Historical Financial Performance Summary Results
Historical Financial Performance Summary Results NPAs / Assets (%) Texas Ratio (%) NPLs ($000) vs. NCOs / Avg. Loans (%) 10.36% $76,600 0.96% $72,500 8.45% $58,100 0.68% 6.39% $48,600 0.55% 0.23% 0.39% 4.15% 0.20% 0.16% 0.10% 2016Y 2017Y 2018Y 2019Y 2016Y 2017Y 2018Y 2019Y 2016Y 2017Y 2018Y 2019Y Ta
Slide 12: Diversified Loan Portfolio by Industry
Diversified Loan Portfolio by Industry LOAN MIX COMMERCIAL Transportation Health Care and and Warehousing Social Assistance All Other 9% 8% $9.0 Billion in Loans 36% Agriculture RE Construction 2% Commercial 8% 15% Public Administration Real Estate and Rental 4% and Leasing 8% Agriculture 3% Accommo
Slide 13: Oil and Gas: Industry Exposure
Oil and Gas: Industry Exposure o $47 million in direct exposure (0.5% of total loan portfolio) o $18 million in unfunded commitments o $14 million in criticized loans category o 2.2% Allowance for Loan Loss Allocation Net Principal Month NAICS Code Description Unfunded Commitment Balance 211111 Crud
Slide 14: Mall and Retail Trade: Portfolio Exposure
Mall and Retail Trade: Portfolio Exposure • $52.1 million direct exposure to Malls1 (0.6% of total loan portfolio) • None in criticized loan categories • $47.7 million direct exposure to Retail Trade 2 (0.5% of total loan portfolio) • $3.4 million in criticized loan categories NAICS NET PRINCIPAL MO
Slide 15: Strong Deposit Base
Strong Deposit Base $11.66 Billion in Deposits CDs > $100k Time Other 6% 7% Demand Non-Interest Bearing 29% Savings 31% Demand Interest Bearing 27% MRQ Cost of Deposits: 33 basis points Page 15 As of December 31, 2019
Slide 16: Source of Deposits
Source of Deposits MARKET SHARE* MARKET SHARE* LOCATION LOCATION Allocation of $11.7B of Deposits by State JUNE 2019 JUNE 2019 Washington Laramie, WY 46% Jackson, WY 15% 5% Riverton, WY 45% Nampa, ID 15% Idaho 11% Sheridan, WY 38% Kalispell, MT 14% Missoula, MT 30% Coeur d’Alene, ID 11% Montana Casp
Slide 17: Deposit Pricing Strategy
Deposit Pricing Strategy Cumulative deposit beta in the declining interest rate environment of 47% BETA SUMMARY BETA Last 25bps Rate Cut 48% Cuts Last 50bps Rate Cuts 51% Last 75bps Rate Cuts 47% Last 25bps Rate Cut 42% Last 50bps Rate Cuts 31% Last 75bps Rate Cuts 30% Hikes Last 100bps Rate Cuts 26
Slide 18: Interest Rate Sensitivity
Interest Rate Sensitivity NET INTEREST INCOME NET INTEREST INCOME NET INTEREST INCOME VOLATILITY - 12 MONTH HORIZON NET INTEREST INCOME (NII) - Shocks $550 +400 bps 1.77% $504 $505 $497 $500 $502 $500 +300 bps 1.48% $462 +200 bps 1.16% $450 $418 +100 bps 0.76% $390 Millions $400 $364 Base 0.00% $350
Slide 19: Non-Interest Income
Non-Interest Income 22.5% of TOTAL REVENUE Other Income 6.7% Other Service Charges and Fees 11.8% Payment Services 29.0% Deposit Service Charges 14.5% Mortgage Banking Wealth Management 21.8% 16.1% For the quarter ended December 31, 2019 Page 19
Slide 20: Investment Portfolio
Investment Portfolio PORTFOLIO COMPOSITION ($2.8B) QUARTERLY NEW PURCHASES: YIELDS 3.50% 3.02% Fixed MBS 38% 2.77% 3.00% 2.38% 2.31% 2.50% CMO 28% 2.00% Treasury / Agency 13% 1.50% 1.00% CMBS 4% 0.50% 0.00% Municipal 4% Q1-19 Q2-19 Q3-19 Q4-19 Corporate 5% QUARTERLY NEW PURCHASES: DURATION A/L 6.00
Slide 21: Liquidity
Liquidity • To meet short term liquidity needs, FIBK maintains a targeted cash and securities position and has borrowing capacity through a number of wholesale sources including the FHLB and the Federal Reserve Bank • FIBK has the following sources of liquidity at the Holding Company level: • $147.1
Slide 22: Appendix
Appendix First Interstate .BancSystem
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in millions, except per share date) As of December 31, 2016 2017 2018 2019 Total common stockholders' equity (GAAP) $982.6 $1,427.6 $1,693.9 $2,013.9 Less goodwill and other intangible assets (excluding MSRs) $222.5 $521.8 $631.6 $711.7 Tangible Common Equity (Non-GA
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