Slide 1: 3Q 2023 Investor Presentation
Exhibit 99.2 3Q 2023 Investor Presentation October 25, 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* $2.6 Billion Annualized Dividend Yield 7.2% Branch Network
Slide 4: FIBK Investment Thesis
FIBK INVESTMENT THESIS q Shareholder value creation is a top priority - building long-term value for all shareholders, directly aligned with management compensation q Experienced leadership team q Diverse Board advising on strategy, overseeing risk and aligned with shareholders q Economically Divers
Slide 5: Third Quarter 2023 Highlights
THIRD QUARTER 2023 HIGHLIGHTS • Net income of $72.7 million, or $0.70 per share for the third quarter of 2023 • Net interest margin (NIM), on a fully taxable equivalent (“FTE”) basis1, of 3.07%, a decrease of 5 basis points from the second Earnings quarter of 2023; adjusted NIM1 of 3.00%, a decrease
Slide 6: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO Loan Highlights: Revolving Commitments ($MM) • Loans declined $50.1 million during the third quarter of 2023, or 1.2% annualized $3.2 $3.2 $3.2 $3.1 $3.1 • Company continues to remain focused on relationship-based lending with strong risk-adjusted returns 37.1% 37.1% 37.1%
Slide 7: CRE Office Exposure
CRE OFFICE EXPOSURE Highlights: • Totals include General Office exposure for all Non-Owner Occupied Commercial Real Estate and Construction loan products, which totaled 3.9% of total loans for the third quarter of 2023. Metro1 exposure totals were <1.0% of total loans for the third quarter of 2023.
Slide 8: Diverse Deposit Base: By Type of Account
DIVERSE DEPOSIT BASE: BY TYPE OF ACCOUNT Deposit Highlights: • Total deposits increased $100.3 million, or 1.6% annualized from the Mix of Consumer and Business Deposits second quarter of 2023 • Non-interest bearing mix-shift slowed modestly during quarter; anticipate ending year at approximately 26
Slide 9: Capital and Liquidity
CAPITAL AND LIQUIDITY Liquid and flexible balance sheet with strong capital position Capital and Liquidity Highlights: • Annualized dividend yield of 7.2% based on the Q3 2023 LHFI to Deposit Ratio average share price of $26.10 72.2% 75.7% 77.5% 76.9% 68.0% • Tangible book value per share (TBVPS)1 a
Slide 10: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES ACL Highlights: ACL ($MM) and Funded ACL/LHFI Ratio • Charge-offs remained minimal during the quarter, while unfunded commitments declined and outstanding loans declined modestly, all leading to a modest loan provision • Investment provision reversal driven by improved cr
Slide 11: 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 decreased by $8.2 million, or 8.8% during the third quarter of 2023 $92.8 • Net charge-offs totaled $1.1 million, or 2 basis
Slide 12: Net Interest Income
NET INTEREST INCOME FTE NII¹ ($MM) and FTE NIM¹ Net Interest Income (NII) and Net Interest Margin (NIM) Highlights: $268.9² • $5.2 million total loan purchase accounting accretion (PAA) for the $260.7² $17.7 third quarter of 2023, up from from $4.6 million in the prior $8.4 quarter $251.2 $252.3 $24
Slide 13: Investment Portfolio
INVESTMENT PORTFOLIO Projected Cash Flow ($MM) & Yield Roll-Off at Quarter-end* Total Portfolio Duration at Quarter-end (in years) $459.8 3.9 3.7 3.8 3.7 3.7 2.62% 2.45% 2.46% $211.7 $181.7 $164.0 $167.9 $162.3 2.31% 2.32% 2.23% 4Q23E 1Q24E 2Q24E 3Q24E 4Q24E 1Q25E 3Q22 4Q22 1Q23 2Q23 3Q23 *Constitut
Slide 14: Non-Interest Income
NON-INTEREST INCOME Non-interest Income by Type ² Dollars in millions 3Q22 2Q23 3Q23 Payment services revenues $ 20.4 $ 20.1 $ 19.2 Other Income, 9% Mortgage banking revenues 2.7 2.6 2.0 Payment Services, 46% Wealth management revenues 8.5 8.8 8.7 Other Service Service charges on deposit accounts 5.
Slide 15: Non-Interest Expense
NON-INTEREST EXPENSE Non-interest Expense ($MM) and Efficiency Ratio Dollars in millions 3Q22 2Q23 3Q23 Salaries and wages $ 71.9 $ 68.1 $ 65.4 175.3 173.2 168.7 170.1 Employee benefits 19.6 19.3 19.7 165.8 165.8 163.9 163.9 161.1 161.1 Occupancy and equipment 17.1 17.3 17.0 Other intangible amortiz
Slide 16: 2023 Guidance Summary
2023 GUIDANCE SUMMARY* • Continue to anticipate deposits remain stable from June 30 through year-end, allowing for seasonal outflows • Securities cash flow and yield roll-off according to the graphic on slide 13 Balance Sheet • Total loans to remain relatively flat from third quarter • Average earni
Slide 17: 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 18: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 3Q22 4Q22 1Q23 2Q23 3Q23 (Dollars in millions) Total common stockholders' equity (GAAP) (A) $ 3,005.5 $ 3,073.8 $ 3,160.3 $ 3,121.2 $ 3,085.5 Less goodwill and other intangible assets (excluding mortgage servicing rights) 1,229.0 1,225.9 1,221.9 1,218.0 1,214.1 Tangible commo
Slide 19: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 3Q22 4Q22 1Q23 2Q23 3Q23 (Dollars in millions) Total non-interest expense $ 173.2 $ 175.3 $ 165.8 $ 163.9 $ 161.1 Less: Acquisition-related expense 4.0 3.9 — — — Less: Litigation accrual 0.5 1.3 — — — Adjusted non-interest expense $ 168.7 $ 170.1 $ 165.8 $ 163.9 $ 161.1 Less:
Slide 20: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 3Q22 4Q22 1Q23 2Q23 3Q23 (Dollars in millions) Net interest income (A) $ 266.8 $ 258.4 $ 238.9 $ 218.4 $ 213.7 FTE adjustments(1) 2.1 2.3 1.8 1.8 1.7 Net interest income on a FTE basis (B) 268.9 260.7 240.7 220.2 215.4 Less purchase accounting accretion 17.7 8.4 5.2 4.6 5.2 A