Slide 1: 1Q 2022 Investor Presentation
1Q 2022 Investor Presentation Exhibit 99.2 April 28, 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 $33.2 Billion Total RB2 14.27% Loans HFI $16.9 Billion CET12 11.91% Deposits $28.1 Billion Leverage2 8.97%
Slide 4: GWB Acquisition Update
GWB ACQUISITION UPDATE Governance Update • Five independent board members from Great Western joined our board as of 2/1/2022 • FIBK dual share-class was eliminated as of March 25, 2022 • FIBK no longer a “controlled company” under NASDAQ rules Integration / Conversion • Core system conversion and ba
Slide 5: Preliminary Acquired Loan Marks
PRELIMINARY ACQUIRED LOAN MARKS Preliminary acquired loan marks as of legal close on February 1, 2022 5 Credit Mark Other Adjustments $ amounts in millions Acquired Loan Balance $ Total (Pre-tax) % of O/S Rate Mark Allowance Established Amortizable Cost Basis PCD loans $722 $(91) (13) % $(25) $84 $6
Slide 6: PCD Actively Managing Acquired Credit Risk
PCD Loan Mix All Other 56% Healthcare 12% Hospitality 16% Ag- Non-Dairy 15% Ag- Dairy 1% PCD ACTIVELY MANAGING ACQUIRED CREDIT RISK 6 $ amounts in millions Acquired PCD Book Balances ($MM) % Total PCD Credit Valuation Mark ($MM) % Mark Against PCD Portfolio Agriculture - Dairy $9 1% $0 2% Agricultur
Slide 7: Q1 2022 Results
Q1 2022 RESULTS Earnings • Acquisition of Great Western Bank completed on February 1, 2022 • Net loss of $33.4 million, or $0.36 per share, driven by $68.3 million of day 2 LLP expense and $65.2 million of merger exp. • Net interest margin of 2.80%; adjusted NIM of 2.65%1, up 19 basis points from th
Slide 8: First Quarter 2022 Highlights
FIRST QUARTER 2022 HIGHLIGHTS Summary of Q1 2022 Results $ amounts in millions, except per share data 1Q22 Net interest income (non-FTE) $178.0 Provision for (reduction in) credit losses $61.3 Non-interest income $49.2 Non-interest expense $207.2 Income before taxes $(41.3) Income taxes $(7.9) Net l
Slide 9: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO Loans Held for Investment Commercial RE, 46% Construction RE, 9% Residential RE, 12% Agriculture RE, 5% Consumer, 6% Commercial, 18% Agriculture, 4% Loans by Geography OR, 10% WA, 7% MT, 14% ID, 5% WY, 5% SD, 12%ND, 1% IA, 11% NE, 7% KS, 1% AZ, 6% CO, 7% Other, 14% Total F
Slide 10: Strong Deposit Base
STRONG DEPOSIT BASE Total Deposits Non-interest bearing, 29% Demand, 29% Savings, 36% Time, 6% Deposits by State OR, 11% MT, 22% ID, 7% WA, 2% WY, 11% SD, 16% IA, 11% NE, 10% KS, 1% MO, 1% AZ, 3% CO, 5% Mix of Consumer and Business Deposits ¹ 51% 50% 50% 50% 49% 49% 50% 50% 50% 51% Total Consumer De
Slide 11: Capital and Liquidity
CAPITAL AND LIQUIDITY Highly liquid and flexible balance sheet with strong capital position Tangible Common Equity ¹ $19.85 $20.49 $20.75 $20.83 $19.78 6.95% 6.99% 6.91% 6.83% 6.79% TBVPS TCE Ratio 1Q21 2Q21 3Q21 4Q21 1Q22 Total Risk-Based Capital Ratios 14.15% 13.89% 14.00% 14.11% 14.27% 11.60% 11.
Slide 12: Allowance for Credit Losses (ACL)
ALLOWANCE FOR CREDIT LOSSES (ACL) Funded ACL and ACL/Loans HFI % $136.6 $135.5 $135.1 $122.3 $247.2 $108.5 $138.7 1.38% 1.38% 1.40% 1.31% 1.46% Total Funded ACL GWB Contribution As a % of loans HFI 1Q21 2Q21 3Q21 4Q21 1Q22 12 Reserve release offset by CECL Day 2 provision of $68.3 million on acquire
Slide 13: Asset Quality and Reserve Trends
ASSET QUALITY AND RESERVE TRENDS Net Charge-off Ratio $2.9 $1.1 $0.6 $2.7 $16.7 $1.3 $15.4 0.12% 0.04% 0.02% 0.11% 0.47% 0.06% Net Charge-offs GWB Charge-offs % of Average Loans % FIBK Only 1Q21 2Q21 3Q21 4Q21 1Q22 Underlying asset quality trends positive, overall metrics impacted by acquired GWB po
Slide 14: Net Interest Income
NET INTEREST INCOME Net Interest Income¹ and Net Interest Margin¹ $121.4 $119.2 $127.5 $122.3 $179.6 12.3 7.8 14.2 9.7 2.8 2.3 2.5 2.3 1.9 7.6 3.04% 2.82% 2.91% 2.69% 2.80% 2.81% 2.70% 2.60% 2.46% 2.65% Adjusted NII ² PPP Income Loan PAA Net Interest Margin Adjusted NIM ² 1Q21 2Q21 3Q21 4Q21 1Q22 14
Slide 15: Net Interest Income (cont'd)
NET INTEREST INCOME (cont’d) 15 NIM Waterfall Analysis 2.69 (0.14) 0.07 — 0.01 0.08 0.13 (0.04) — — 2.80 4Q21 Loans ex- PAA ¹ Investments Cash Deposits Loan PAA Loans Investments Cash Deposits 1Q22 Scheduled Purchase Accounting Accretion from GWB Acquisition $30.5 ² $(6.9) $23.6 $22.1 $(7.4) $14.6 $
Slide 16: Well Positioned to Benefit from Higher Rates
WELL POSITIONED TO BENEFIT FROM HIGHER RATES Loan Repricing Gap Schedule ¹ $8,118 $4,021 $2,919 $1,887 Maturity / Repricing Buckets <= 1 Yr > 1 Yr < 3 Yr < 3 Yr <= 5 Yr > 5 Yr 16 Loan Repricing Characteristics Variable, 16% Libor 1M, 11% Adjustable (Excl: 1M Libor), 21% Fixed, 52% 1 Contractual repr
Slide 17: Investment Portfolio
INVESTMENT PORTFOLIO Quarterly New Purchases: Weighted Avg Yield 1.3% 1.0% 1.2% 1.5% 2.2% 1Q21 2Q21 3Q21 4Q21 1Q22 17 Investment Portfolio Highlights: • During the quarter, FIBK repositioned $645 million of acquired securities, eliminating those that did not align with FIBK’s policies, credit risk p
Slide 18: Noninterest Income by Type
18 Noninterest Income by Type ¹ Payment Services, 34% Mortgage Banking, 11% Wealth Management, 18% Deposit Service Charges, 17% Other Service Charges & Fees, 10% Other Income, 10% 1Q21 4Q21 1Q22 Payment Services $ 10.2 $ 11.3 $ 14.8 Mortgage Banking 11.6 8.0 8.4 Wealth Management 6.3 7.2 8.1 Deposit
Slide 19: Non-Interest Expense
NON-INTEREST EXPENSE 19 Non-interest Expense Highlights: • Q2 2022 operating expense expected to add around $20 million in GWB expenses from one extra month compared with Q1 2022 results • Merger expenses of approximately $60-70 million remaining, most of which should be incurred in Q2 2022 • Q4 202
Slide 20: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 20 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 21: Non-GAAP Reconciliation: Tangible Equity and Book Value
1Q22 4Q21 3Q21 2Q21 1Q21 (Dollars in millions) Total common stockholders' equity (GAAP) (A) $ 3,441.1 $ 1,986.6 $ 1,984.8 $ 1,970.9 $ 1,933.4 Less goodwill and other intangible assets (excluding mortgage servicing rights) 1,275.2 690.9 693.3 695.7 698.2 Tangible common stockholders' equity (Non-GAAP
Slide 22: Non-GAAP Reconciliation: Adjusted Efficiency Ratio
1Q22 4Q21 3Q21 2Q21 1Q21 (Dollars in millions) Total noninterest expense $ 207.2 $ 102.2 $ 105.9 $ 99.0 $ 98.4 Less: Merger-related expense 65.2 5.0 6.6 — — Less: Litigation accrual (recovery) — (0.2) 1.2 — — Adjusted noninterest expense $ 142.0 $ 97.4 $ 98.1 $ 99.0 $ 98.4 Less: Intangible amortizat
Slide 23: Non-GAAP Reconciliation: Adjusted Net Interest Margin
1Q22 4Q21 3Q21 2Q21 1Q21 (Dollars in millions) Net interest income on a fully-taxable equivalent ("FTE") basis 179.6 122.3 127.5 119.2 121.4 Less: Purchase accounting accretion 7.6 1.9 2.3 2.5 2.3 Less: PPP Income 2.8 9.7 14.2 7.8 12.3 Adjusted net interest income (A) 169.2 110.6 111.0 108.9 106.8 A
Slide 24: Non-GAAP Reconciliation: Adjusted Return on Average Equity
1Q22 4Q21 3Q21 2Q21 1Q21 (Dollars in millions); all adjustments are after-tax Reported net (loss) income (33.4) 51.1 47.1 42.5 51.4 Plus: Non-PCD CECL Day 2 provision 55.2 — — — — Plus: Merger-related expenses 52.7 3.8 5.1 — — Plus: MSR fair value adjustments (2.7) (0.8) — — (4.6) Plus: Gain on earl