Slide 1: 2Q 2024 Investor Presentation
Exhibit 99.2 2Q 2024 Investor Presentation July 25, 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* $2.9 Billion Annualized Dividend Yield 7.1% Branch Network
Slide 4: Second Quarter 2024 Highlights
SECOND QUARTER 2024 HIGHLIGHTS • Net income of $60.0 million, or $0.58 per share for the second quarter of 2024 • Net interest margin (NIM), on a fully taxable equivalent (“FTE”) basis1, of 3.00%, an increase of 7 basis points from the first quarter Earnings of 2024; adjusted FTE NIM1 of 2.92%, an i
Slide 5: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO Loan Highlights: Revolving Commitments ($B) • Loans increased $32.2 million during the second quarter of 2024 due mostly to increases in Commercial loans driven by $3.1 $3.1 $3.0 $2.9 both new production and increased line utilization, partially $2.7 offset by a decline in
Slide 6: Term Commercial Real Estate Portfolio
TERM COMMERCIAL REAL ESTATE PORTFOLIO Highlights: • $10.6 billion portfolio (58% of total loans), well diversified Market Type by property type and geography • Non-owner-occupied portfolio of $6.0 billion (33% of total loans) Non-Metro, 87% • 0.27% past due ($25 million); 0.42% non-accrual ($38 mill
Slide 7: Diverse Deposit Base: By Type of Account
DIVERSE DEPOSIT BASE: BY TYPE OF ACCOUNT Deposit Highlights: Mix of Consumer and Business Deposits • Total deposits increased $60.7 million, or 1.2% annualized, from the first quarter of 2024. • Non-interest bearing deposits remained stable at 26% of total average 47% 47% 47% 46% 48% deposits; time
Slide 8: Capital and Liquidity
CAPITAL AND LIQUIDITY Liquid and flexible balance sheet with strong capital position Capital and Liquidity Highlights: • Annualized dividend yield of 7.1% based on the second LHFI to Deposit Ratio quarter of 2024 average share price of $26.48 77.5% 76.9% 78.4% 79.8% 79.7% • Capital ratios increased
Slide 9: Allowance for Credit Losses (ACL)
ALLOWANCE FOR CREDIT LOSSES (ACL) ACL Highlights: ACL ($MM) and Funded ACL/LHFI Ratio • Funded ACL increased to 1.28% of loans from 1.25%. • The funded ACL included an addition to the specific reserve for the C&I relationship that moved to non-performing loans in the first quarter of 2024. $245.4 $2
Slide 10: Asset Quality and Reserve Trends
ASSET QUALITY AND RESERVE TRENDS Credit management resulted in stable asset quality Total non-performing loans ($MM) and ACL/NPL Ratios Asset Quality Highlights: $175.0 $168.2 • Total criticized loans decreased $12.0 million during the second quarter of 2024, driven by loan paydowns, payoffs, and $1
Slide 11: Net Interest Income
NET INTEREST INCOME FTE NII¹ ($MM) and FTE NIM¹ Net Interest Income (NII) and Net Interest Margin (NIM) Highlights: • $5.1 million of loan purchase accounting accretion (PAA) for the second quarter of 2024, a decrease from $6.5 million from the prior quarter • Total remaining PAA of $58.1 million as
Slide 12: Investment Portfolio
INVESTMENT PORTFOLIO Projected Cash Flow ($MM) and Yield Roll-Off at Quarter-end* Total Portfolio Duration at Quarter-end (in years) 3.7 3.7 3.6 3.5 3.5 2.77% 2.53% $339.0 2.47% 2.44% 2.41% 2.37% $222.9 $196.4 $199.9 $203.4 $167.0 3Q24E 4Q24E 1Q25E 2Q25E 3Q25E 4Q25E 2Q23 3Q23 4Q23 1Q24 2Q24 *Constit
Slide 13: Non-Interest Income
NON-INTEREST INCOME Dollars in millions 2Q24 Non-interest Income by Type 2Q23 1Q24 2Q24 Payment services revenues $ 20.1 $ 18.4 $ 18.6 Mortgage banking revenues 2.6 1.7 1.7 Other Income, 10% Wealth management revenues 8.8 9.2 9.4 Payment Services, 44% Service charges on deposit accounts 5.8 6.0 6.4
Slide 14: Non-Interest Expense
NON-INTEREST EXPENSE Non-interest Expense ($MM) and Efficiency Ratio Dollars in millions 2Q23 1Q24 2Q24 163.9 161.1 166.0 160.2 156.9 Salaries and wages $ 68.1 $ 65.2 $ 66.3 Employee benefits 19.3 19.3 16.9 64.2% 64.6% Occupancy and equipment 17.3 17.3 16.9 62.7% 61.5% Other intangible amortization
Slide 15: 2024 Guidance Summary
2024 GUIDANCE SUMMARY* • Anticipate ending deposits to be relatively flat through year-end 2024 from June 30 levels Loans and Deposits • Anticipate ending loans to be relatively flat through year-end 2024 from June 30 levels • Anticipate second-half net interest income to increase 3-5% over the firs
Slide 16: 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 17: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2Q23 3Q23 4Q23 1Q24 2Q24 (Dollars in millions) Total common stockholders' equity (GAAP) (A) $ 3,121.2 $ 3,085.5 $ 3,227.5 $ 3,209.7 $ 3,225.3 Less goodwill and other intangible assets (excluding mortgage servicing rights) 1,218.0 1,214.1 1,210.3 1,206.6 1,202.9 Tangible commo
Slide 18: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2Q23 3Q23 4Q23 1Q24 2Q24 (Dollars in millions) Net interest income (A) $ 218.4 $ 213.7 $ 207.8 $ 200.1 $ 201.7 FTE adjustments(1) 1.8 1.7 1.7 1.7 1.7 Net interest income on a FTE basis (Non-GAAP) (B) 220.2 215.4 209.5 201.8 203.4 Less purchase accounting accretion 4.6 5.2 5.4