Slide 1: 2Q 2022 Investor Presentation
2Q 2022 Investor Presentation Exhibit 99.2 July 26, 2022
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 Financial Highlights Balance Sheet Capital Assets $32.0 Billion Total RB2 13.60% Loans HFI $17.2 Billion CET12 11.46% Deposits $26.9 Billion Leverage2 7.72%
Slide 4: Second Quarter 2022 Results
SECOND QUARTER 2022 RESULTS Earnings • Successfully completed merger and core system conversion of Great Western Bank on May 23, 2022 • Net income of $64.1 million, or $0.59 per share, driven by strong NII expansion and a $1.7 million provision reversal • Net interest margin of 3.25%; adjusted NIM o
Slide 5: Second Quarter 2022 Highlights
SECOND QUARTER 2022 HIGHLIGHTS Summary of Q2 2022 Results $ amounts in millions, except per share data 2Q22 Net interest income (non-FTE) $237.9 Provision for (reduction in) credit losses $(1.7) Non-interest income $51.0 Non-interest expense $210.3 Income before taxes $80.3 Income taxes $16.2 Net in
Slide 6: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO Loans Held for Investment Commercial RE, 45% Construction RE, 10% Residential RE, 12% Agriculture RE, 5% Consumer, 6% Commercial, 18% Agriculture, 4% Loans by Geography MT, 14% WY, 5% ID, 5% WA, 7% OR, 9% SD, 11%ND, 1%NE, 7% IA, 11% KS, 2% AZ, 6% CO, 7% Other, 15% Revolvin
Slide 7: Deposit Base
DEPOSIT BASE Total Deposits Non-interest bearing, 31% Demand, 30% Savings, 33% Time, 6% Deposits by State MT, 22% WY, 12% ID, 7% WA, 3% OR, 10% SD, 15% NE, 10% IA, 11% MO, 1% KS, 1% AZ, 3% CO, 5% Mix of Consumer and Business Deposits ¹ 50% 50% 50% 49% 49% 50% 50% 50% 51% 51% Total Consumer Deposits
Slide 8: Capital and Liquidity
CAPITAL AND LIQUIDITY Highly liquid and flexible balance sheet with strong capital position Tangible Common Equity ¹ $20.49 $20.75 $20.83 $19.78 $18.92 6.99% 6.91% 6.83% 6.79% 6.62% TBVPS TCE Ratio 2Q21 3Q21 4Q21 1Q22 2Q22 Total Risk-Based Capital Ratios 13.89% 14.00% 14.11% 14.27% 13.60% 11.45% 11.
Slide 9: Allowance for Credit Losses (ACL)
ALLOWANCE FOR CREDIT LOSSES (ACL) Funded ACL and ACL/Loans HFI % $135.5 $135.1 $122.3 $220.4 $247.2 $108.5 $138.7 1.38% 1.40% 1.31% 1.46% 1.28% Total Funded ACL GWB Contribution As a % of loans HFI 2Q21 3Q21 4Q21 1Q22 2Q22 9 Reserve release resulting from the re-evaluation of certain GWB loan relati
Slide 10: Asset Quality and Reserve Trends
ASSET QUALITY AND RESERVE TRENDS Net Charge-off Ratio $1.1 $0.6 $2.7 $0.3 $16.7 $1.3 $15.4 0.04% 0.02% 0.11% 0.47% 0.01% 0.06% Net Charge-offs GWB Charge-offs % of Average Loans % FIBK Only 2Q21 3Q21 4Q21 1Q22 2Q22 Underlying asset quality continues to trend positively, overall metrics impacted by a
Slide 11: Net Interest Income
NET INTEREST INCOME Net Interest Income¹ and Net Interest Margin¹ $119.2 $127.5 $122.3 $179.6 $240.0 7.8 14.2 9.7 2.8 1.1 2.5 2.3 1.9 7.6 16.7 2.82% 2.91% 2.69% 2.80% 3.25% 2.69% 2.60% 2.46% 2.65% 3.01% Adjusted NII ² PPP Income Loan PAA Net Interest Margin Adjusted NIM ² 2Q21 3Q21 4Q21 1Q22 2Q22 11
Slide 12: Net Interest Income (cont'd)
NET INTEREST INCOME (cont’d) 12 NIM Waterfall Analysis 2.80 0.02 0.15 0.03 (0.01) 0.11 0.03 (0.03) 0.13 0.01 3.25 1Q22 Loans ex- PAA ¹ Investments Cash Deposits Loan PAA Loans Investments Cash Borrowings 2Q22 Scheduled Purchase Accounting Accretion from GWB Acquisition $32.0 ² $(6.8) $25.2 $16.4 $(7
Slide 13: Well Positioned to Benefit from Higher Rates
WELL POSITIONED TO BENEFIT FROM HIGHER RATES Loan Repricing Gap Schedule ¹ $8,666 $4,926 $2,326 $1,244 Maturity / Repricing Buckets <= 1 Yr > 1 Yr <= 3 Yr > 3 Yr <= 5 Yr > 5 Yr 13 Loan Repricing Characteristics Fixed, 53% Variable, 15% Libor 1M, 11% Adjustable (Excl: 1M Libor), 21% 1 Contractual rep
Slide 14: Investment Portfolio
INVESTMENT PORTFOLIO Quarterly New Purchases: Weighted Avg Yield 1.0% 1.2% 1.5% 2.2% 3.3% 2Q21 3Q21 4Q21 1Q22 2Q22 14 Investment Portfolio Highlights: • On June 1, the company terminated a $500 million forward-starting pay-fixed swap, resulting in a $23.3 million gain to be accreted into income thro
Slide 15: Non-interest Income by Type
15 Non-interest Income by Type ¹ Payment Services, 39% Mortgage Banking, 10% Wealth Management, 19% Deposit Service Charges, 13% Other Service Charges & Fees, 7% Other Income, 12% 2Q21 1Q22 2Q22 Payment Services $ 11.4 $ 14.8 $ 19.5 Mortgage Banking 9.6 8.4 5.0 Wealth Management 6.3 8.1 9.3 Deposit
Slide 16: Non-interest Expense
NON-INTEREST EXPENSE 16 Non-interest Expense Highlights: • Merger expenses have largely been recognized as of June 30th, with another $5-10 million pre-tax remaining • Q4 2022 operating expense run-rate expected to be around $160 million, including roughly $4 million of total intangible amortization
Slide 17: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 17 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 ou
Slide 18: Non-GAAP Reconciliation: Tangible Equity
2Q21 3Q21 4Q21 1Q22 2Q22 (Dollars in millions) Total common stockholders' equity (GAAP) (A) $ 1,970.9 $ 1,984.8 $ 1,986.6 $ 3,441.1 $ 3,271.9 Less goodwill and other intangible assets (excluding mortgage servicing rights) 695.7 693.3 690.9 1,275.2 1,232.9 Tangible common stockholders' equity (Non-GA
Slide 19: Non-GAAP Reconciliation: Efficiency Ratio
2Q21 3Q21 4Q21 1Q22 2Q22 (Dollars in millions) Total non-interest expense $ 99.0 $ 105.9 $ 102.2 $ 207.2 $ 210.3 Less: Acquisition-related expense — 6.6 5.0 65.2 45.8 Less: Litigation accrual (recovery) — 1.2 (0.2) — — Adjusted non-interest expense $ 99.0 $ 98.1 $ 97.4 $ 142.0 $ 164.5 Less: Intangib
Slide 20: Non-GAAP Reconciliation: Adjusted Net Interest Margin
2Q21 3Q21 4Q21 1Q22 2Q22 (Dollars in millions) Net interest income on a fully-taxable equivalent ("FTE") basis 119.2 127.5 122.3 179.6 240.0 Less: Purchase accounting accretion 2.5 2.3 1.9 7.6 16.7 Less: PPP Income 7.8 14.2 9.7 2.8 1.1 Adjusted net interest income (A) 108.9 111.0 110.7 169.2 222.2 A
Slide 21: Non-GAAP Reconciliation: Adjusted Return on Equity
2Q21 3Q21 4Q21 1Q22 2Q22 (Dollars in millions); all adjustments are after-tax Reported net (loss) income 42.5 47.1 51.1 (33.4) 64.1 Plus: Non-PCD CECL Day 2 provision — — — 55.2 — Plus: Acquisition-related expenses — 5.1 3.8 52.7 36.6 Plus: MSR fair value adjustments — — (0.8) (2.7) — Plus: Other in