First Interstate Bancsystem, Inc. · NASDAQ:FIBK
First Interstate Bancsystem — Sterne Agee Financial Institutions Investor Conference 2014
29 slides from First Interstate Bancsystem's conference presentation, Feb 13, 2014
Slide 1: Sterne Agee Financial Institutions Investor Conference
Sterne Agee Financial Institutions Investor Conference Boca Raton, FL February 13-14, 2014
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: Long Term History with Solid Performance
Long Term History with Solid Performance Company Snap Shot Headquartered in Billings, MT with 68 banking offices across Montana, Wyoming and western South Dakota Total Assets of $7.6 Billion Total Loans of $4.3 Billion Regional bank offering retail and commercial banking, along with wealth managemen
Slide 4: [LOGO]
[LOGO]
Slide 5: Impressive Market Shares
Impressive Market Shares First Interstate BancSystem Ranked #2 by market share in Montana and Wyoming, and #2 in the western South Dakota markets we serve. -Data Per SNL Financial Page 5 (June 30, 2013)
Slide 6: Diversified Industries
Diversified Industries Agriculture Cattle Crops Page 6 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 de
Slide 7: Influence of the Bakken Oil Field
Influence of the Bakken Oil Field Page 7 Bakken Oil Field Canada Current plays Prospective plays South Dakota North Dakota Wyoming (US Energy Information Administration)
Slide 8: Tourism, Healthcare and Military
Tourism Glacier National Park, MT Yellowstone National Park, WY Major National Parks Summer/Winter Opportunities Mount Rushmore, SD Page 8 Healthcare Aging population base Regional healthcare centers Veterans Administration healthcare Military /Government Ellsworth Air Force Base, SD Malmstrom Air F
Slide 9: Stable Employment
Stable Employment Page 9 MT 5.2%, Ranked 12th WY 4.4%, Ranked 7th SD 3.6%, Ranked 3rd 0% to 4% Best 5 Sates 4% to 6% 1 North Dakota 2.6% 6% to 8% 2 Nebraska 3.6% 8% to 10% 3 South Dakota 3.6% 10% or more 4 Utah 4.1% 5 Iowa 4.2% Worst 5 States 50 Rhode Island 9.1% 49 Nevada 8.8% 48 Illinois 8.6% 47 M
Slide 10: Balance Sheet, Asset Quality Trends and Earnings
Page 10 Balance Sheet Asset Quality Trends and Earnings
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio $4.3 Billion in Loans Credit opportunities Loans held for investment grew 3.5% over the last 12 months, with continued positive economic indicators Construction activity increasing Home sales increasing Low unemployment Disciplined credit practices In-house limit of $15 Mi
Slide 12: Investment Portfolio
Investment Portfolio Effective Duration of the portfolio is 3.74 years Average yield of the portfolio is 1.79% (as of 12/31/13) Strategy: Maintain short –duration with minimal credit risk and an emphasis on stable cash flows and extension risk mitigation. Page 12 Investment Portfolio $2.1 Billion
Slide 13: Strong Core Deposit Base
Strong Core Deposit Base First Interstate BancSystem Page 13 (as of 12/31/2013) Low Cost of Funds Q4 2013 - .28% Average 2013 - .31%
Slide 14: Strong Capital Ratios
Strong Capital Ratios Page 14 * Redemption of $50 M Preferred Stock
Slide 15: Improving Credit Quality Trends
Improving Credit Quality Trends Page 15 (In millions) 70% reduction since peak in mid-2012 Earnings Improvement a result of improved Credit Metrics
Slide 16: Meaningful Reduction in Criticized Loans
Meaningful Reduction in Criticized Loans Page 16 (In millions) $272 million , or 43%, decline over 2 years
Slide 17: Earnings Improvement
Earnings Improvement Page 17
Slide 18: Improved Earnings Ratios
Improved Earnings Ratios Page 18 ROAA for 2013 – 1.16%
Slide 19: Strong Non-Interest Income Revenue Streams
Strong Non- Interest Income Revenue Streams Page 19 NII opportunities Wealth Management growth AUM - $4 Billion and growing Wealth advisors positioned across our footprint Mortgage lending Ability to expand our market share Credit card activity Ability to further increase business card usage Local r
Slide 20: Origination and Sale of Residential Loans
Origination and Sale of Residential Loans First Interstate BancSystem Page 20 Revenue from Origination and Sale of Loans (In thousands) Revenues challenged, but increased mix is encouraging.
Slide 21: Merger with Mountain West Financial Corp.
Page 21 First Interstate BancSystem Merger with Mountain West Financial Corp. February 10, 2014
Slide 22: Transaction Highlights
Transaction Highlights Page 22 Compelling Strategic Fit Low Execution Risk Enhances Shareholder Value 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
Slide 23: Pro Forma Branch Map
Pro Forma Branch Map Page 23 FIBK (76) MTWF (13) Deposit data as of June 30, 2013 Source: SNL Financial; FDIC Helena Great Falls Missoula Bozeman Kalispell Whitefish
Slide 24: Top Market Share in Montana
Top Market Share in Montana Page 24 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 in deposits) to #1 ($317 million in deposits) Pro forma FIBK market share in the Great Falls area increases from #3 ($2
Slide 25: Overview of Mountain West Financial Corp.
Overview of Mountain West Financial Corp. (OTCBB: MTWF) Page 25 For the year ended December 31, 2012 Note: Financial data as of or for the nine months ended September 30, 2013 unless otherwise indicated; dollar values in thousands Improved Asset Quality Overview Mountain West Bank, NA founded in 199
Slide 26: Summary of Deal Terms
Summary of Deal Terms Page 26 Consideration 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 Valuation Based on FIBK closing stock price on February 10, 2014 of $24.77, per share value
Slide 27: Summary Financial Assumptions and Impact
Summary Financial Assumptions and Impact Page 27 Cost Savings Approximately 35% of MTWF noninterest expense base One-time Deal Costs Approximately $7.2 million pretax Fair Market Value and Accounting Adjustments Loan portfolio mark-to-market ~4.4% of gross loans Core Deposit Intangible 1.50% amortiz
Slide 28: Executive Summary
Executive Summary Page 28 Compelling geographic fit produces #1 deposit market share franchise in Montana Strengthens position in Helena Creates expansion and cost savings opportunities in other attractive markets Thorough diligence effort along with market familiarity reduces execution risk Conserv
Slide 29: 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 First Interstate BancSystem Page 29
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