First Interstate Bancsystem, Inc. · NASDAQ:FIBK
First Interstate Bancsystem — Merger or Acquisition (October 2018)
14 slides from First Interstate Bancsystem's merger presentation, Oct 11, 2018
Slide 1: First Interstate Accelerates Strategic Expansion into Pacific Northwest Growth Markets
Exhibit 99.1 FIRST INTERSTATE ACCELERATES STRATEGIC EXPANSION INTO GROWTH MARKETS OF THE PACIFIC NORTHWEST WITH ACQUISITIONS OF IDAHO INDEPENDENT BANK AND COMMUNITY 1ST BANK OCTOBER 11, 2018
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements include, but are not limited to, statements about (1) the benefits of the mergers between First Interstate BancSystem, Inc.
Slide 3: Important Additional Information
Important Additional Information This presentation is being made in respect of the proposed mergers between First Interstate and IIBK and First Interstate and CMYF. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any v
Slide 4: Transaction Highlights
Transaction Highlights o Continued geographic diversification into attractive, high growth markets in Pacific Northwest o Strong Idaho presence in Boise and Coeur d’Alene Strategically o Cohesive set of banking franchises with similar cultures due to the management, market and ownership Compelling o
Slide 5: Overview of Idaho Independent Bank & Community 1st Bank
Overview of Idaho Independent Bank & Community 1st Bank As of June 30, 2018 Idaho Independent Bank Overview Community 1st Bank Overview Headquarters Coeur d’Alene, Idaho Headquarters Post Falls, Idaho Footprint 11 branches Footprint 3 branches Assets $725 million Assets $129 million Gross Loans $362
Slide 6: Attractive, Low Cost Pacific Northwest Deposit Markets
Attractive, Low Cost Pacific Northwest Deposit Markets IIBK and CMYF have strong market share in complementary Pacific Northwest markets FIBK (149) IIBK (11) CMYF (3) Top MSAs - Deposit Market Share Market Deposits Deposits % Proj. Market Growth IIBK Rank Branches ($mm) of PF Total 5-Year CAGR Boise
Slide 7: Strong Pro Forma Idaho State Market Share
Strong Pro Forma Idaho State Market Share FIBK pro forma is the largest community bank in Boise and the second largest community bank in Coeur d'Alene Total Active Total Deposit Market Branches Total Deposits Market Share YoY Deposit 5-Year Deposit Community Bank in Strong Economies Rank Company Nam
Slide 8: Top Ranked Idaho Community Banking Franchise
Top Ranked Idaho Community Banking Franchise Pro Forma¹ Total Assets 500,008 725,016 129,800 1,354,824 Total Loans 479,565 362,049 78,283 919,897 Total Deposits 656,378 609,941 115,526 1,381,845 ID Deposit Market Share % 2.53% 2.35% 0.45% 5.33% Market Rank 12 13 25 6 o Moves First Interstate from #5
Slide 9: Diverse, Low Risk Loan Portfolio
Diverse, Low Risk Loan Portfolio As of June 30, 2018 Loan Overview Strong Loan Growth $365,891 $361,798 o 9.4% / 9.1% CAGR since 2013 for IIBK and CMYF $324,659 $292,202 $266,052 o 86% / 63% of loans floating with Prime or LIBOR for IIBK and CMYF $241,581 o Expertise in business banking $76,236 $78,
Slide 10: Attractive Low Cost Deposit Base
Attractive Low Cost Deposit Base As of June 30, 2018 IIBK Deposit Overview CMYF Deposit Overview Cost of Deposits o 0.09% cost of deposits o 0.34% cost of deposits 0.34% 0.29% 0.28% o 21% transaction deposits o 42% transaction deposits 1 1 o ~99% core deposits o ~86% core deposits 0.09% FIBK IIBK CM
Slide 11: Summary of Deal Terms
Summary of Deal Terms IIBK CMYF o 0.5 FIBK Class A common shares per IIBK share, o 0.3784 FIBK Class A common shares per CMYF or ~3.9mm FIBK shares in aggregate share, or ~0.5mm FIBK shares in aggregate Consideration and Deal Value1 o Implied purchase price of $22.73 per share o Implied purchase pri
Slide 12: Consolidated Financial Impact
Consolidated Financial Impact Financial Impact and Assumptions Consolidated Financial Impact to FIBK EPS Accretion o ~3.6% accretive to EPS in 2020 o Pro Forma TCE / TA of 8.5% o ~1.4% Tangible Book Value dilution per share Projected o Pro Forma Leverage Ratio Combined Pro TBV Impact o <2.0 year Tan
Slide 13: Comprehensive Due Diligence and Preparation
Comprehensive Due Diligence and Preparation Experienced And o First Interstate management and employees have significant acquisition and integration experience Disciplined o Five successful acquisitions in the last five years Acquisition And o Cascade acquisition already integrated and systems conve
Slide 14: Strengthens Outlook for First Interstate
Strengthens Outlook for First Interstate o Strong earnings contribution from IIBK and CMYF fully realized in 2020 o 3%+ Earnings Per Share accretion with conservative assumptions Benefits of o Transaction cost savings result in improved pro forma efficiency ratio Operating o Cross sell opportunities
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