First Interstate Bancsystem, Inc. · NASDAQ:FIBK
First Interstate Bancsystem — Keefe, Bruyette & Woods Annual Community Bank Investor Conference 2014
25 slides from First Interstate Bancsystem's conference presentation, Jul 29, 2014
Slide 1: Keefe, Bruyette & Woods Community Bank Investor Conference
Keefe, Bruyette & Woods th Annual Community Bank Investor Conference New York City, NY July 29-30, 2014 Exhibit 99.1
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 Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, that involve
Slide 3: Company Snap Shot and Company Performance
Company Snap Shot Company Performance Long Term History with Solid Performance Headquartered in Billings, MT with 74 branches across Montana, Wyoming and western South Dakota Total Assets of $7.7 Billion Total Loans of $4.5 Billion Regional bank offering retail and commercial banking, along with wea
Slide 4: Sw MiN«
Sw 0 MiN«
Slide 5: Impressive Market Shares
Ranked #2 by market share in Montana and Wyoming, and #2 in the western South Dakota markets we serve. 50% 38% 12% Allocation of $6.2 Billion in Deposits Impressive Market Shares -Data Per SNL Financial (June 30, 2013) MSAs Market Share Billings, MT 26% Missoula, MT 31% Casper, WY 27% Rapid City, SD
Slide 6: Diversified Industries
Diversified Industries Agriculture Cattle Crops Energy Oil and Natural Gas Greater Williston Basin Area Bakken formation Powder River Basin Coal MT Ranked #1 and WY ranked #3 in demonstrated Coal Reserves WY Ranked #1 in Production Wind MT, WY and SD in the top 10 for potential wind energy developme
Slide 7: Influence of the Bakken Oil Field
Influence of the Bakken Oil Field North Dakota South Dakota Wyoming Canada Billings is the nearest trade area to the Bakken Oil Fields
Slide 8: Tourism, Healthcare and Military/Government
Tourism Glacier National Park, MT Yellowstone National Park, WY Major National Parks Summer/Winter Opportunities Mount Rushmore, SD Healthcare Aging population base Regional healthcare centers Veterans Administration healthcare Military /Government Ellsworth Air Force Base, SD Malmstrom Air Force Ba
Slide 9: Stable Employment
Stable Employment MT 4.5%, Ranked 11th WY 4%, Ranked 6th SD 3.8%, Ranked 5th 0% to 4% Best 5 Sates 4% to 6% North Dakota 2.7% 6% to 8% Nebraska 3.5% 8% to 10% Utah 3.5% 10% or more Vermont 3.5% South Dakota 3.8% Worst 5 States Mississippi 7.9% Nevada 7.7% Michigan 7.5% Kentucky 7.4% Georgia 7.4% Sou
Slide 10: Balance Sheet, Asset Quality Trends and Earnings
Balance Sheet Asset Quality Trends and Earnings
Slide 11: $4.5 Billion in Loans
$4.5 Billion in Loans Diversified Loan Portfolio $4.5 Billion in Loans Commercial RE 32.5% Construction RE 8.0% Residential RE 19.9% Agriculture RE 3.6% RE Held for Sale 1.3% Consumer 15.7% Commercial 16.1% Agricultural 2.9% As of 6/30/2014) ( Q2 loan growth of $142 million or 3.2% over last quarter
Slide 12: Investment Portfolio $2.1 Billion
Investment Portfolio $2.1 Billion Investment Portfolio 0% 20% 40% 60% 80% 100% 120% Other Municipal MBS CMO's Agencies Effective Duration of the portfolio is 3.1 years Average yield of the portfolio is 1.73% (as of 6/30/14) Strategy: Maintain short duration with minimal credit risk and an emphasis o
Slide 13: $6.2 Billion in Deposits
24% 30% 8% 27% 11% $6.2 Billion in Deposits Strong Core Deposit Base (as of 6/30/2014) Low Cost of Funds Q2 2014 - 0.27% Demand Non- Interest Bearing Demand Interest Bearing Savings Time Other CDs >100k
Slide 14: 31% of Total Revenue: Non-Interest Income Revenue Streams
31% of Total Revenue Strong Non-Interest Income Revenue Streams Non-Interest Income Wealth Management AUM - $4+ Billion and growing Bakken influence creating wealth Wealth advisors positioned across our footprint Mortgage Lending Strong purchase activity, particularly in eastern Montana, our largest
Slide 15: Earnings Improvement
Earnings Improvement $33,984 $27,863 $27,904 $30,378 $0 $4,000 $8,000 $12,000 $16,000 $20,000 $24,000 $28,000 $32,000 $36,000 Mortgage Revenue Impact Stable Pre-Tax, Pre-Provision Earnings $0.54 $0.47 $0.48 $0.47 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 Diluted Earnings Per Share (in thousands)
Slide 16: Strong Capital Ratios
Strong Capital Ratios * Redemption of $50 M Preferred Stock Deploying capital to maximize shareholder return Strong dividend Stock repurchase plan Mergers & Acquisitions Mountain West acquisition set to close July 31, 2014 16.69% 15.02% 8.72% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Total Risk Based Capit
Slide 17: Improved Earnings Ratios
Improved Earnings Ratios 1.12% 0.00% 0.30% 0.60% 0.90% 1.20% Annualized Return on Average Assets 10.18% 0.00% 3.00% 6.00% 9.00% 12.00% Annualized Return on Average Common Equity
Slide 18: Improving Credit Quality Trends
Improving Credit Quality Trends (In millions) 70% reduction since peak in mid-2012 Earnings Improvement driven by Improved Credit Metrics 1.27% of Total Assets $97 $- $50 $100 $150 $200 Non- $81 $- $40 $80 $120 $160 Non-Performing Loans $16 $- $10 $20 $30 $40 $50 $60 OREO Performing Assets
Slide 19: Merger with Mountain West Financial Corp. Announced February 10, 2014
First Interstate BancSystem Merger with Mountain West Financial Corp. Announced February 10, 2014
Slide 20: Compelling Strategic Fit, Low Execution Risk, Enhances Shareholder Value
Compelling Strategic Fit Low Execution Risk Enhances Shareholder Value Transaction Highlights Creates the #1 deposit market share franchise in the state of Montana Meaningfully expands Helena presence while creating consolidation opportunities in other market areas Adds scale within existing footpri
Slide 21: Branch Proximity Analysis
Branch Proximity Analysis¹ Distance from Number of Total MTWF % of FIBK Branch MTWF Deposits Total (mi.) Branches ($000s) Deposits Pro Forma Branch Map FIBK (76) MTWF (13) 1) Deposit data as of June 30, 2013 Source: SNL Financial; FDIC Helena Great Falls Missoula Bozeman Kalispell Whitefish Recently
Slide 22: Top Market Share in Montana
Total Deposits Deposit Number of in Market Market Share Rank Institution (St.) Branches ($mm) (%) 1 PRO FORMA 51 3,550.5 17.9 Top Market Share in Montana Note: Deposit data as of June 30, 2013 Source: SNL Financial; FDIC Pro forma FIBK market share in the Helena area increases from #6 ($70 million i
Slide 23: Summary of Deal Terms
Consideration Valuation Post-Merger Economic Ownership Anticipated Closing Selected Closing Conditions Summary of Deal Terms 0.2552 FIBK shares of Class A Common Stock and $7.125 in cash in exchange for each MTWF share Outstanding and unexercised MTWF options will be cashed out at closing Based on F
Slide 24: Summary Financial Assumptions and Impact
Cost Savings One-time Deal Costs Fair Market Value and Accounting Adjustments Debt Redemption Impact to FIBK Shareholders 2015e EPS TBVPS Impact Internal Rate of Return Summary Financial Assumptions and Impact Approximately 35% of MTWF noninterest expense base Approximately $7.2 million pretax Loan
Slide 25: Why invest in First Interstate BancSystem?
Why invest in First Interstate BancSystem? Long Track Record of Profitability Leading Market Positions Attractive and Healthy Footprint Improving Credit Metrics Low-Cost Core Deposit Base Growth Opportunities Increasing Shareholder Returns