Slide 1: Investor Presentation July 2021
Investor Presentation July 2021 Exhibit 99.2
Slide 2: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Page 2 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, an
Slide 3: FIBK Overview
FIBK Overview Overview Headquarters Billings, MT Kroll Rating (Subordinated Notes) BBB Total Assets $18.9 Billion Trust Assets Under Management $5.7 Billion Total Deposits $15.6 Billion Description • Headquartered in Billings, MT and focused on regional community banking in Idaho, Montana, Oregon, S
Slide 4: Investment Highlights
Investment Highlights • Pandemic response: Our people, our clients, and our communities • Experienced leadership team • Strong financial performance • Diversified client base tempers economic volatility • Strong core deposit funding • Conservative credit strategy, limiting exposure to large losses •
Slide 5: Experienced Leadership Team
Name Title Age Industry Experience Years at FIBK Kevin P. Riley President and Chief Executive Officer 61 30+ Years 7 Years Marcy D. Mutch Chief Financial Officer 61 30+ Years 14 Years Russell A. Lee Chief Banking Officer 64 40+ Years 6 Years Jodi Delahunt Hubbell Chief Operating Officer 55 30+ Years
Slide 6: Building the First Interstate Franchise
147 banking offices in 6 states Building the First Interstate Franchise Mr. Homer Scott establishes First Interstate Bank with the purchase of the Bank of Commerce in Sheridan, Wyoming 1968 2014 2015 2019 11 BRANCHES $725 MILLION 2017 46 BRANCHES $3.2 BILLION 2008 2018 20 BRANCHES $814 MILLION2016 7
Slide 7: Attractive Markets
Attractive Markets Page 7 Deposit Market Share and Branch Locations by State Idaho % of Market Deposits 4.7% 17.7% 2.3% 0.1% 0.3% 14.9% Deposit Market Share Rank 8th 2nd 11th 12th 31st 2nd Number of Branches 23 49 33 16 18 16 Total Population 1,832,352 1,081,656 4,281,747 894,793 7,765,146 578,413 P
Slide 8: Attractive Markets: Historically Stable Employment
Attractive Markets: Historically Stable Employment Page 8 B est 5 States 1 Nebraska 2.5% 2 Utah 2.7% 3 New Hampshire 2.9% 4 South Dakota 2.9% 5 Idaho 3% Wo rst 5 States 50 New M exico 7.9% 49 Connecticut 7.9% 48 Nevada 7.8% 47 New York 7.7% 46 Hawaii 7.7% 0.0% to 3.0% 3.0% to 4.0% 4.0% to 6.0% Sourc
Slide 9: Solid Funding Base
Solid Funding Base First Interstate -BancSystem
Slide 10: Strong Core Deposit Base
Strong Core Deposit Base Page 10 As of June 30, 2021 Overview Total Deposits $15.6 Billion Total Core Deposits* $15.4 Billion Cost of Deposits, incl. Repos (Q2 2021) 6 basis points Demand Non- Interest Bearing 35% Demand Interest Bearing 28% Savings 31% Time, Other 5% Time, $250K and over 1% *Core D
Slide 11: Source of Deposits
Source of Deposits Allocation of $15.6B of Deposits by State Page 11 *The market share percentages are per the FDIC, not including Credit Union Deposits within each community. As of June 30, 2021 LOCATION MARKET SHARE* JUNE 2020 LOCATION MARKET SHARE* JUNE 2020 Laramie, WY 44% Jackson, WY 14% Rivert
Slide 12: Balance of Consumer and Business Deposits
Balance of Consumer and Business Deposits 57% 57% 55% 53% 51% 50% 43% 43% 45% 47% 49% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2017 2018 2019 2020 Q1 2021 Q2 2021 Total Consumer Deposits Total Business Deposits Page 12 P e rc e n t (% ) As of the applicable period end
Slide 13: Credit Portfolio
Credit Portfolio First Interstate -BancSystem
Slide 14: Diversified Loan Portfolio by Industry
Diversified Loan Portfolio by Industry Loan Mix Commercial Commercial Real Estate & Construction Agriculture RE 2% Commercial RE 38% Residential RE 16% Construction RE 12% Consumer 10% Agriculture 2% Commercial 20% $9.8 Billion in Loans Real Estate and Rental and Leasing 15% Construction 11% Health
Slide 15: Loan Portfolio by State
Loan Portfolio by State Idaho 8% Montana 25% Oregon 17% South Dakota 5% Washington 11% Wyoming 10% Other* 24% Page 15 * “Other” is an aggregation of central lines of business that includes residential mortgages, credit cards, and indirect consumer loans. As of June 30, 2021
Slide 16: Trends in Unfunded Commitments
Trends in Unfunded Commitments Page 16 54.6% 67.1% 39.8% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% Jul '20 Aug '20 Sep '20 Oct '20 Nov '20 Dec '20 Jan '21 Feb '21 Mar '21 Apr '21 May '21 Jun '21 Unfunded as a % of Commitment Revolving and Non-Revolving Lines of Credit Revolving Non
Slide 17: Trends in Unfunded Revolving Commitments
Trends in Unfunded Revolving Commitments Page 17 67.1% 32.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Percentage Used / Unused (Revolving)* Total Unfunded Commitments % Total Funded Commitments % 0 200 400 600 800 1,000 1,200
Slide 18: Deferrals and Forbearances
Deferrals and Forbearances Page 18 Type # Approved $ Approved (in millions) Commercial 3 $ 0.1 Consumer 43 $ 1.4 Total 46 $ 1.5 Type # Approved $ Approved (in millions) Mortgage 11 $ 2.6 Forbearances As of June 30, 2021 Deferrals
Slide 19: Improving Asset Quality
Improving Asset Quality Non-Performing Loans to Loans Held for Investment (LHFI) Non-Performing Assets to Total Assets Non-Performing Assets to LHFI + OREO 0.51% 0.51% 0.39% 0.49% 0.39% 0.35% 0.29% 0.24% 0.20% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
Slide 20: Criticized and Classified Loans
Criticized and Classified Loans 4.60% 4.63% 4.34% 4.49% 3.65% 3.74% 3.49% 3.16% 2.78% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2.57% 2.69% 2.58% 2.80% 2.43% 2.19% 1.96% 1.62% 1.47% 0.00% 0.50% 1.00% 1.50
Slide 21: Top Relationships
Top 10 Relationships Page 21 Borrower Industry Outstandings Unfunded Commitments Lessors of Residential Buildings and Dwellings $37,255,837 $31,462,948 $68,718,784 Other Activities Related to Real Estate 50,990,366 16,944,915 67,935,281 Engineering Services 29,275,774 30,541,383 59,817,158 Offices o
Slide 22: Current Expected Credit Loss (CECL)
Page 22 Current Expected Credit Loss (CECL)
Slide 23: CECL Results
CECL Results Page 23 • Reviewed and affirmed June 2021 Baseline forecast. • Herd immunity against COVID-19 achieved by August 2021 • Fed rates remain low; asset purchases by the Fed expected to begin tapering early 2022 • Inflation risks expected to increase 2.8% over the course of 2021 but remain i
Slide 24: Allowance for Credit Loss (ACL) Allocation by Segment
Allowance for Credit Loss (ACL) Allocation by Segment Page 24 *Variance between modeled loan outstanding balances and total loans are primarily Paycheck Protection Program (PPP) Loans, New Market Tax Credits and overdrafts. Totals may not sum due to rounding and/or non-disclosed segments. As of June
Slide 25: Balance Sheet Management
Page 25 Balance Sheet Management
Slide 26: Investment Portfolio
Investment Portfolio Quarterly New Purchases: Average Yield Quarterly New Purchases: Duration A/L Page 26 Portfolio Composition ($5.64 Billion) 0.9% 1.2% 1.4% 1.5% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% Q2-21Q1-21Q4-20Q3-20 As of June 30, 2021 0% 0% 1% 1% 4% 7% 9% 10% 15% 15% 38% 0% 5% 10% 15%
Slide 27: Attractive Duration Profile
Attractive Duration Profile Page 27 3.75 4.02 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Y E A R S INVESTMENTS DURATION Securities Duration Securities + Fair Value Hedge Duration
Slide 28: Interest Rate Sensitivity
Interest Rate Sensitivity Page 28 NET INTEREST INCOME CHANGE ($) NET INTEREST INCOME CHANGE (%) Base case assumes static balance sheet as of June 30, 2021 and parallel rate shifts. $566 $538 $510 $483 $454 $417 $397 $300 $350 $400 $450 $500 $550 $600 +400 bps+300 bps+200 bps+100 bpsBase-100 bps-200
Slide 29: Well Positioned to Benefit from Higher Rates
Well Positioned to Benefit from Higher Rates Page 29 • 17.1% Increase in Core Deposits (Q2-21 vs. Q2-20) • 6 BPS Total Deposit Costs, incl. Repos (Q2 2021) • $1.7B Excess Liquidity (06-30-21) We remain well positioned for the environment as deployment of excess liquidity could provide meaningful ear
Slide 30: Loan Repricing Gap Schedule
Page 30 As of June 30, 2021 Fixed Loans 55% Adjustable (Term) Loans 22% Variable (Prime-Based) Loans 12% Libor 1M Loans 11% LOAN REPRICING GAP SCHEDULE* $4,948 $2,901 $1,393 $593 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 <= 1Y > 1Y <= 3Y > 3Y <= 5Y > 5Y $ in Millions *Contractual Repricing Benchm
Slide 31: Current Financial Performance
Page 31 Current Financial Performance
Slide 32: Pre-Provision Net Revenue (PPNR)
$66.6 $68.2 $64.9 $60.4 $55.1 1.77% 1.73% 1.60% 1.37% 1.21% 1.10% 1.20% 1.30% 1.40% 1.50% 1.60% 1.70% 1.80% 1.90% 2.00% $54.0 $56.0 $58.0 $60.0 $62.0 $64.0 $66.0 $68.0 $70.0 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 $ i n M il li o n s PPNR PPNR/Avg Assets (annualized) Pre-Provision Net Revenue (PPNR)
Slide 33: Net Interest Margin Analysis: Contribution to Change
Net Interest Margin Analysis: Contribution to Change Page 33 3.04% 2.82% -11 BPS -7 BPS 1 BPS 0 BPS -9 BPS 4 BPS 0 BPS 0 BPS 2.00% 2.20% 2.40% 2.60% 2.80% 3.00% 3.20% Q1-21 Loan Investment Cash Deposit Loans Investments Cash Deposits Q2-21 NET INTEREST MARGIN CONTRIBUTION: BREAKDOWN RATE IMPACT MIX
Slide 34: Non-Interest Income
Non-Interest Income Payment Services 32.3% Mortgage Banking 27.2% Wealth Management 17.8% Deposit Service Charges 11.0% Other Service Charges and Fees 4.5% Other Income 7.1% 22.9% of Total Revenue Page 34 Quarter Ended June 30, 2021
Slide 35: Payment Services
Payment Services $3.4 $6.1 $1.9 Total: $11.4 Million** Debit Interchange Credit Interchange Other fee income $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Credit Card Volumes* Business Consumer **As of June 30, 2021 (in millions) Page 35 $ i n m il li
Slide 36: Mortgage Production
Mortgage Production QUARTERLY PRODUCTION VOLUME 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% $- $100 $200 $300 $400 $500 $600 $700 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Purchase Refinance % Sold to Secondary Market Page 36 As of the applicable period e
Slide 37: Wealth Management
Wealth Management $3,584 $591 $1,058 $516 Total: $5,749 Million** Discretionary Non-Discretionary Brokerage Retirement Plan $3,600 $4,100 $4,600 $5,100 $5,600 $6,100 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Assets Under Administration* **As of June 30, 2021 (in millions) Page 37 $ i n m il li o n s *As of th
Slide 38: Growth Strategies and Capital Allocation
Page 38 Growth Strategies and Capital Allocation
Slide 39: Maximizing Shareholder Value
Maximizing Shareholder Value Management’s priority is to deploy capital through: Page 39 Return on Capital Organic Growth M&A Share Repurchases Special Dividend Dividends
Slide 40: We are Delivering Results
Page 40 We are Delivering Results Since the IPO in March 2010, FIBK has delivered a 314% total return to shareholders Source: Bloomberg 313.61 % -100 -50 0 50 100 150 200 250 300 350 400 450 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 P e rc e n t (% ) FIBK: T
Slide 41: Appendix
Appendix FirstInterstate .BancSystem
Slide 42: Non-GAAP Financial Measures
Non-GAAP Financial Measures Page 42 This presentation contains pre-provision net revenue (PPNR) and pre-provision net revenue per share (PPNRPS), which are non-GAAP financial measures that management uses to evaluate our capital adequacy. PPNR is calculated as net-interest income plus non-interest i
Slide 43: Non-GAAP Reconciliation
Non-GAAP Reconciliation Page 43 (Dollars in millions) Pre-Provision Net Revenue (PPNR) Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Net interest income (GAAP) $122.5 $123.0 $128.4 $120.7 $118.8 Plus: Noninterest income (GAAP) $39.7 $44.7 $33.9 $38.1 $35.3 Total revenues (GAAP) $162.2 $167.7 $162.3 $158.8
Slide 44: Hospitality: Portfolio Exposure
Hospitality: Portfolio Exposure • 8.2% of total loan portfolio • $29.3 million in unfunded commitments • Hotel (except Casino Hotels) and Motel account for 60.3% of total portfolio Month NAICS Code Description Net Principal Balance Unfunded Commitment June 2021 721110 Hotels (except Casino Hotels) a
Slide 45: Hospitality: Industry Performance
Hospitality: Industry Performance • $91.5 million in criticized loan categories • $4.1 million in impaired loan categories • $11.2 million or 1.4% in allowance for credit losses • No specific reserves Description Criticized % Criticized Classified % Classified Impaired % Impaired Hotels (except Casi
Slide 46: Hotel Exposure by State
Hotel Exposure by State Page 46 $14.4 $123.5 $147.7 $29.3 $80.3 $90.7 $0.7 $14.4 $127.1 $160.6 $29.7 $81.5 $93.4 $0.7 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 ID MT OR SD WA WY Other Outstanding Commitment • No hotel loan with a balance greater than $23 Million. • Approximately $86 Million of Hot
Slide 47: Hotel Outstandings by Risk Distribution
Hotel Outstandings by Risk Distribution Page 47 Pass 61% Pass-Watch 25% Special Mention 6% Substandard 8% As of June 30, 2021
Slide 48: Indirect Auto: Lending
Indirect Auto: Lending Consumer Indirect Production Indirect Loan Portfolio Page 48 As of June 30, 2021 • Est. Average Life of RV: 45 months • Est. Average Life of Auto: 32 months $ i n M il li o n s New Auto 25% Other 9% RV 24% Used Auto 42% 4.91% 4.73% 4.61% 4.26% 4.52% 4.79% 3.0% 3.5% 4.0% 4.5% 5
Slide 49: Indirect Auto: Delinquency
Indirect Auto: Delinquency Originations from a credit quality perspective • Approximately 59% of our originations are above a 750 FICO score • Approximately 89% of our originations are above a 700 FICO score • Not participating in the subprime space; less than 0.5% of the portfolio has a score below
Slide 50: Agriculture: Portfolio Exposure
Agriculture: Portfolio Exposure • 4.5% of total loan portfolio • $176.0 million in unfunded commitments • Beef Cattle Ranching/Farming accounting for 41.1% of total portfolio Month NAICS Code Description Net Principal Balance Unfunded Commitment June 2021 112111 Beef Cattle Ranching and Farming $ 18
Slide 51: Agriculture: Industry Performance
Agriculture: Industry Performance • $49.4 million in criticized loan categories • $8.1 million in impaired loan categories • $3.4 million or 0.8% allowance for credit losses • $0.7 million in specific reserves Description Criticized % Criticized Classified % Classified Impaired % Impaired Beef Cattl
Slide 52: Oil and Gas: Industry Exposure
Oil and Gas: Industry Exposure • $34.2 million in direct exposure (0.4% of total loan portfolio) • $12.4 million in unfunded commitments • $6.4 million in criticized loans category Month NAICS Code Description Net Principal Balance Unfunded Commitment June 2021 213112 Support Activities for Oil and
Slide 53: Oil and Gas: Industry Performance
Oil and Gas: Industry Performance • $2.3 million in impaired loan categories • $0.8 million or 2.2% allowance for credit losses • $0 in specific reserves Description Criticized % Criticized Classified % Classified Impaired % Impaired Support Activities for Oil and Gas Operations $ 2,847,009 13.4% $
Slide 54: Mall and Retail Trade: Portfolio Exposure
Mall and Retail Trade: Portfolio Exposure • $53.4 million direct exposure to Malls (0.5% of total loan portfolio) o None in criticized loan categories • $32.5 million direct exposure to Retail Trade (0.3% of total loan portfolio) o $1.7 million in criticized loan categories Month NAICS Code Descript
Slide 55: Mall and Retail Trade: Portfolio Performance
Mall and Retail Trade: Portfolio Performance • $1.7 million in criticized loan categories • $0.2 million in impaired loan categories • $0.8 million or 1.0% allowance for credit losses • No specific reserves Description Criticized % Criticized Classified % Classified Impaired % Impaired Sporting Good
Slide 56: Idaho Business Cycle Status
Business Cycle Status RECOVERY MID EXPANSION LATE EXPANSION AT RISKIN RECESSION Idaho Economic Drivers Strengths & Weaknesses Business Costs Vitality U.S.=100% Best=1, Worst=51 Summary of Key Indicators: Idaho State GDP Overview Economic Growth U.S.=100% Highest=1, Lowest=51 0% 5% 10% 15% Agricultur
Slide 57: Montana
Montana ENERGY & RESOURCES Strengths • Year-round tourist attractions, including popular national parks. • Relatively low cost of doing business. • Population growth is stronger for longer; housing and consumer industries benefit. Weaknesses • Far from major markets. • Below-average incomes. • Agric
Slide 58: Oregon
Strengths • Diverse economy with export focus. • Low energy costs courtesy of a network of hydroelectric plants. • Leader in semiconductor production, for which • global demand is strong. Weaknesses • Strict environmental regulations that raise business costs. • Above-average employment volatility.
Slide 59: South Dakota
South Dakota U.S.=100% Best=1, Worst=51 U.S.=100% Highest=1, Lowest=51 0% 5% 10% 15% Agriculture Mining Utilities Construction Manufacturing Wholesale Retail Transportation Information Finance/Insurance Real Estate Professional Educational Health Arts Accommodation Other services Government SD GDP:
Slide 60: Washington
Washington U.S.=100% Best=1, Worst=51 U.S.=100% Highest=1, Lowest=51 0% 5% 10% 15% Agriculture Mining Utilities Construction Manufacturing Wholesale Retail Transportation Information Finance/Insurance Real Estate Professional Educational Health Arts Accommodation Other services Government WA GDP: In
Slide 61: Wyoming
Wyoming U.S.=100% Best=1, Worst=51 U.S.=100% Highest=1, Lowest=51 0% 5% 10% 15% 20% 25% Agriculture Mining Utilities Construction Manufacturing Wholesale Retail Transportation Information Finance/Insurance Real Estate Professional Educational Health Arts Accommodation Other services Government WY GD