Slide 1: 1Q 2024 Investor Presentation
Exhibit 99.2 1Q 2024 Investor Presentation April 24, 2024
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* $2.8 Billion Annualized Dividend Yield 6.9% 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: First Quarter 2024 Highlights
FIRST QUARTER 2024 HIGHLIGHTS • Net income of $58.4 million, or $0.57 per share for the first quarter of 2024 • Net interest margin (NIM), on a fully taxable equivalent (“FTE”) basis1, of 2.93%, a decrease of 8 basis points from the fourth quarter Earnings of 2023; adjusted NIM1 of 2.84%, a decrease
Slide 6: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO Loan Highlights: Revolving Commitments ($B) • Loans decreased $76.8 million during the first quarter of 2024 due mostly to seasonal declines in agriculture loans $3.2 $3.1 $3.1 $3.0 $2.9 • Commercial real estate balances are 33.8% owner-occupied for the first quarter of 20
Slide 7: Term Commercial Real Estate Portfolio
TERM COMMERCIAL REAL ESTATE PORTFOLIO Highlights: • $9.1 billion portfolio (50% of total loans) well diversified by Market Type property type and geography • Non-owner-occupied portfolio of $6.0 billion (33% of total loans) Non-Metro, 86% • 0.15% past due ($13mm) / 0.41% non-accrual ($37mm) • Larges
Slide 8: Diverse Deposit Base: By Type of Account
DIVERSE DEPOSIT BASE: BY TYPE OF ACCOUNT Deposit Highlights: • Total deposits decreased $513.1 million, driven both by seasonal Mix of Consumer and Business Deposits business declines and the strategic run-off of $185.0 million of fully collateralized, higher-cost Municipal balances • Customer mix-s
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 6.9% based on the first quarter LHFI to Deposit Ratio of 2024 average share price of $27.30 75.7% 77.5% 76.9% 78.4% 79.8% • Capital ratios increased f
Slide 10: Allowance for Credit Losses (ACL)
ALLOWANCE FOR CREDIT LOSSES (ACL) ACL Highlights: ACL ($MM) and Funded ACL/LHFI Ratio • Funded ACL remained unchanged at 1.25% of loans • Off-balance sheet commitments declined, leading to a modest unfunded commitment release $243.9 $245.4 $245.5 $246.1 $243.1 • On-balance sheet construction loans d
Slide 11: Asset Quality and Reserve Trends
ASSET QUALITY AND RESERVE TRENDS Credit management resulted in stable asset quality Total NPLs ($MM) and ACL/NPL Ratios Asset Quality Highlights: $175.0 • Total criticized loans decreased $58.3 million during the first quarter of 2024, driven by both upgrades and payoffs $111.3 • Total non-performin
Slide 12: Net Interest Income
NET INTEREST INCOME FTE NII¹ ($MM) and FTE NIM¹ Net Interest Income (NII) and Net Interest Margin (NIM) Highlights: • $6.5 million of loan purchase accounting accretion (PAA) for the first quarter of 2024, an increase from $5.4 million from the prior quarter $240.7² $5.2 • Total remaining PAA of $63
Slide 13: Investment Portfolio
INVESTMENT PORTFOLIO Projected Cash Flow ($MM) and Yield Roll-Off at Quarter-end* Total Portfolio Duration at Quarter-end (in years) 3.8 3.7 3.7 3.6 3.5 2.96% 2.72% $349.1 2.62% 2.55% 2.45% 2.48% $227.8 $220.0 $202.1 $187.8 $187.9 2Q24E 3Q24E 4Q24E 1Q25E 2Q25E 3Q25E 1Q23 2Q23 3Q23 4Q23 1Q24 *Constit
Slide 14: Non-Interest Income
NON-INTEREST INCOME Dollars in millions 1Q24 Non-interest Income by Type 1Q23 4Q23 1Q24 Payment services revenues $ 18.7 $ 18.4 $ 18.4 Mortgage banking revenues 2.3 1.5 1.7 Other Income, 11% Wealth management revenues 9.0 8.8 9.2 Payment Services, 44% Service charges on deposit accounts 5.2 6.0 6.0
Slide 15: Non-Interest Expense
NON-INTEREST EXPENSE Non-interest Expense ($MM) and Efficiency Ratio Dollars in millions 1Q23 4Q23 1Q24 165.8 163.9 161.1 166.0 160.2 Salaries and wages $ 65.6 $ 64.0 $ 65.2 Employee benefits 22.8 13.5 19.3 64.2% 64.6% Occupancy and equipment 18.4 17.4 17.3 63.4% 61.5% Other intangible amortization
Slide 16: 2024 Guidance Summary
2024 GUIDANCE SUMMARY* • Anticipate ending deposits to increase 1-2% from March 31 levels through year-end 2024, with normal seasonality Loans and Deposits • Anticipate ending loans to be relatively flat from end-of-year 2023 • Anticipate net interest income to decline mid-single digits for 2024 com
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 1Q23 2Q23 3Q23 4Q23 1Q24 (Dollars in millions) Total common stockholders' equity (GAAP) (A) $ 3,160.3 $ 3,121.2 $ 3,085.5 $ 3,227.5 $ 3,209.7 Less goodwill and other intangible assets (excluding mortgage servicing rights) 1,221.9 1,218.0 1,214.1 1,210.3 1,206.6 Tangible commo
Slide 19: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 1Q23 2Q23 3Q23 4Q23 1Q24 (Dollars in millions) Net interest income (A) $ 238.9 $ 218.4 $ 213.7 $ 207.8 $ 200.1 FTE adjustments(1) 1.8 1.8 1.7 1.7 1.7 Net interest income on a FTE basis (B) 240.7 220.2 215.4 209.5 201.8 Less purchase accounting accretion 5.2 4.6 5.2 5.4 6.5 Ad