Slide 1: 2Q 2023 Investor Presentation
Exhibit 99.2 2Q 2023 Investor Presentation July 26, 2023
Slide 2: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule
Slide 3: First Interstate BancSystem, Inc. Overview
FIRST INTERSTATE BANCSYSTEM, INC. OVERVIEW Premier community banking franchise in growing markets throughout the Midwest and Pacific Northwest Corporate Overview Headquarters Billings, MT Exchange/Listing NASDAQ: FIBK Market Capitalization* $2.5 Billion Annualized Dividend Yield 7.5% Branch Network
Slide 4: FIBK Investment Thesis
FIBK INVESTMENT THESIS Shareholder value creation is a top priority - building long-term value for all stakeholders, directly aligned with q management compensation q Experienced leadership team q Diverse Board advising on strategy, overseeing risk and aligned with shareholders q Economically Divers
Slide 5: Second Quarter 2023 Highlights
SECOND QUARTER 2023 HIGHLIGHTS • Net income of $67.0 million, or $0.65 per share, included $0.01 of selected items in Q2 2023, mainly $1.9 million of severance • Net interest margin1 (NIM) of 3.12%, a decrease of 24 basis points from Q1 2023; adjusted NIM of 3.05%2, a decrease of 24 basis points fro
Slide 6: Second Quarter 2023 Results
SECOND QUARTER 2023 RESULTS Summary of Q2 2023 Results Q2 2023 Selected items impact Dollars in millions, except per Income Statement Pre-tax After-tax Reported EPS share data 2Q23 Dollars in millions, except per share data Geography (in MM) (in MM) Impact Net interest income $218.4 Severance Expens
Slide 7: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO Loan Highlights: Revolving Commitments ($MM) • Loan growth of $17.7 million in Q2, or 0.4% annualized $3.1 $3.2 $3.2 $3.2 $3.1 • Non-revolving unfunded commitments of $1.6 billion at 6/30 37.1% 37.1% 37.1% 36.8% • Commercial real estate (RE) commitments are 34.0% owner- 37
Slide 8: CRE Office Exposure
CRE OFFICE EXPOSURE Highlights: • Totals include General Office exposure for all Non-Owner Occupied CRE and Construction loan products, which totals 4.0% of total loans at 6/30. Metro exposure totals <1.0% of total loans at 6/30 ◦ Metro Office Construction totals 2 deals for $24.7 million • $325.0 m
Slide 9: Diverse Deposit Base: By Type of Account
DIVERSE DEPOSIT BASE: BY TYPE OF ACCOUNT Deposit Highlights: • As expected, total deposits declined $527.8 million, or 2.2% during Q2 Mix of Consumer and Business Deposits • Deposit balances increased by $375 million, or 1.6% in the month of June. Growth came late in the month, in line with historic
Slide 10: Diverse Deposit Base: Changes in Account Balances
DIVERSE DEPOSIT BASE: CHANGES IN ACCOUNT BALANCES Deposit Highlights: • Average consumer account balances less than $20,000, with 76% less Consumer Customer Deposit Balance than $250K Distribution • Average business account balances approximately $90,000, with 54% 40% less than $1M 30% 20% Deposit C
Slide 11: Diverse Deposit Base: Uninsured vs Insured Mix
DIVERSE DEPOSIT BASE: UNINSURED VS INSURED MIX Deposit Highlights: • Insured deposits stable during period and are approximately $15.8 billion at 6/30 • Uninsured deposits not subject to collateralization are approximately $6.2 billion at 6/30. The Company continues to have zero brokered deposit fun
Slide 12: Capital and Liquidity
CAPITAL AND LIQUIDITY Liquid and flexible balance sheet with strong capital position Capital and Liquidity Highlights: • Annualized dividend yield of 7.5% based on Q2 average share LHFI to Deposit Ratio price of $25.21 75.7% 77.5% 68.0% 72.2% 63.9% • TBVPS and TCE ratio declined during the quarter,
Slide 13: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES ACL Highlights: ACL ($MM) and Funded ACL/LHFI Ratio • The Company migrated to a new CECL model during the second quarter of 2023, resulting in the redistribution of a portion of the total ACL from funded to unfunded • ACL coverage ratio to non-performing loans (NPLs) rema
Slide 14: Asset Quality and Reserve Trends
ASSET QUALITY AND RESERVE TRENDS Credit management resulted in stable asset quality Asset Quality Highlights: Total NPLs ($MM) and ACL/NPL Ratios • Total non-performing loans at 6/30 increased by $7.5 million, or 8.8% from 3/31 $109.9 $92.8 • Approximately 85% of Q2 2023 NCOs are attributable to one
Slide 15: Net Interest Income (NII)
NET INTEREST INCOME (NII) Net Interest Income¹ ($MM) and Net Interest Margin¹ Net Interest Income and Net Interest Margin Highlights: $268.9 • $4.6 million total loan purchase accounting accretion (PAA) in Q2 $260.7 $17.7 2023, a decrease from $5.2 million in the prior quarter $8.4 $241.1 $252.3 $24
Slide 16: Net Interest Income (cont'd)
NET INTEREST INCOME (cont’d) NIM Waterfall Analysis 0.03 0.01 3.36 (0.01) 0.03 (0.18) (0.01) 0.02 (0.04) 3.12 (0.05) (0.04) RATE IMPACT MIX IMPACT 23 ns ts sh its os gs ns ts its gs 23 1Q Lo a en Ca po s Re p wi n Lo a en po s in 2Q m m ow ve st De rro ve st De rr In Bo In Bo 16
Slide 17: Loan Portfolio Re-pricing Profile
LOAN PORTFOLIO RE-PRICING PROFILE Loan Re-pricing Characteristics Contractual Maturity/Re-pricing Buckets¹ ($B) with Roll-off Coupon $6.0 $5.0 4.38% Variable, 11% $4.9 7.61% Fixed, 60% $4.0 $4.3 4.81% Libor 1M, 7% $3.4 $3.0 4.61% 4.24% $2.8 $2.8 SOFR 1M, 3% $2.0 $1.0 Adjustable excl Libor 1M & SOFR
Slide 18: Investment Portfolio
INVESTMENT PORTFOLIO Projected Cash Flow ($MM) & Yield Roll-Off at Quarter-end Total Portfolio Duration at Quarter End (in years) $465.4 3.9 3.9 3.7 3.8 3.7 2.59% 2.41% $207.8 $188.9 $180.4 $168.1 $166.5 2.32% 2.23% 2.32% 2.28% 3Q23E 4Q23E 1Q24E 2Q24E 3Q24E 4Q24E 2Q22 3Q22 4Q22 1Q23 2Q23 18
Slide 19: Non-Interest Income
NON-INTEREST INCOME Non-interest Income by Type ² Dollars in millions 2Q22 1Q23 2Q23 Payment services revenues $ 19.5 $ 18.7 $ 20.1 Other Income, 11% Mortgage banking revenues 5.0 2.3 2.6 Payment Services, 45% Wealth management revenues 9.3 9.0 8.8 Service charges on deposit accounts 6.3 5.2 5.8 Oth
Slide 20: Non-Interest Expense
NON-INTEREST EXPENSE Non-interest Expense ($MM) and Efficiency Ratio Dollars in millions 210.3 2Q22 1Q23 2Q23 Salaries and wages $ 74.8 $ 65.6 $ 68.1 175.3 173.2 168.7 170.1 Employee benefits 19.4 22.8 19.3 164.5 165.8 165.8 163.9 163.9 Occupancy and equipment 17.0 18.4 17.3 Other intangible amortiz
Slide 21: 2023 Guidance Summary
2023 GUIDANCE SUMMARY • Loan growth expected to be low-single-digit end-of-period growth for full year • Securities cash flow and yield roll-off according to the graphic on slide 18 Balance Sheet • Average earning assets will be modestly below $28 billion for the remainder of the year • Deposits ass
Slide 22: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES In addition to results presented in accordance with accounting principles generally accepted in the United States of America, or GAAP, this press release contains the following non-GAAP financial measures that management uses to evaluate our performance relative to our ca
Slide 23: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2Q22 3Q22 4Q22 1Q23 2Q23 (Dollars in millions) Total common stockholders' equity (GAAP) (A) $ 3,271.9 $ 3,005.5 $ 3,073.8 $ 3,160.3 $ 3,121.2 Less goodwill and other intangible assets (excluding mortgage servicing rights) 1,232.9 1,229.0 1,225.9 1,221.9 1,218.0 Tangible commo
Slide 24: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2Q22 3Q22 4Q22 1Q23 2Q23 (Dollars in millions) Total non-interest expense $ 210.3 $ 173.2 $ 175.3 $ 165.8 $ 163.9 Less: Acquisition-related expense 45.8 4.0 3.9 — — Less: Litigation accrual — 0.5 1.3 — — Adjusted non-interest expense $ 164.5 $ 168.7 $ 170.1 $ 165.8 $ 163.9 Le
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2Q22 3Q22 4Q22 1Q23 2Q23 (Dollars in millions) Net interest income on a fully-taxable equivalent ("FTE") basis (A) $ 241.1 $ 268.9 $ 260.7 $ 240.7 $ 220.2 Less purchase accounting accretion 16.7 17.7 8.4 5.2 4.6 Adjusted net interest income (B) $ 224.4 $ 251.2 $ 252.3 $ 235.5
Slide 26: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2Q22 3Q22 4Q22 1Q23 2Q23 (Dollars in millions); all adjustments are after-tax Net income (A) $ 64.1 $ 85.7 $ 85.8 $ 56.3 $ 67.0 Plus: Acquisition-related expenses 36.6 3.2 3.0 — — Plus: Other income items (1.4) — — — — Plus: Investment securities loss 0.1 19.2 — 17.7 0.1 Plus