Slide 1: 1Q 2023 Investor Presentation
Exhibit 99.2 1Q 2023 Investor Presentation April 26, 2023
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* $3.1 Billion Dividend Yield 5.3% Branch Network 307 banking
Slide 4: First Quarter 2023 Highlights
FIRST QUARTER 2023 HIGHLIGHTS • Net income of $56.3 million, or $0.54 per share, included $0.18 of selected items and $0.02 less accretion in Q1 2023 vs. Q4 2022 Earnings • Net interest margin1 (NIM) of 3.36%, a decrease of 25 basis points from Q4 2022; adjusted NIM of 3.29%2, a decrease of 20 basis
Slide 5: First Quarter 2023 Results
FIRST QUARTER 2023 RESULTS Summary of Q1 2023 Results Q1 2023 Selected items impact Dollars in millions, except per Income Statement Pre-tax After-tax Reported EPS share data 1Q23 Dollars in millions, except per share data Geography (in MM) (in MM) Impact Net interest income $238.9 Held for sale (HF
Slide 6: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO Loan Highlights: Revolving Commitments ($MM) • Loan growth of $146.5 million in Q1, or 3.2% annualized $3.2 $3.1 $3.2 $3.2 $3.2 • Non-revolving unfunded commitments of $1.8 billion at 3/31 41.7% • Commercial real estate (RE) commitments are 34.3% owner- 37.9% 37.1% 36.8% 3
Slide 7: CRE Office Exposure
CRE OFFICE EXPOSURE Highlights: • Totals below include General Office exposure for all Non-Owner Occupied CRE and Construction loan products, which totals 4.4% of total loans at 3/31. Metro exposure totals <1.0% of total loans at 3/31 ◦ Metro Office Construction totals 2 deals for $37.0 million • On
Slide 8: Deposit Base
DEPOSIT BASE Deposit Highlights: • Granular deposit base with 54% consumer balances; average consumer Mix of Consumer and Business Deposits account less than $20,000 and average business account approximately $90,000 • Total deposits declined $966.6 million, or 3.9% during Q1 51% 51% 49% 48% 46% • I
Slide 9: Capital and Liquidity
CAPITAL AND LIQUIDITY Highly liquid and flexible balance sheet with strong capital position Capital and Liquidity Highlights: • Dividend yield of 5.3%, based on Q1 average share price of LHFI to Deposit Ratio $35.20 72.2% 75.7% 63.9% 68.0% 60.3% • TBVPS and TCE ratio increased with retained earnings
Slide 10: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES ACL build resulting from loan growth and qualitative macro outlook ACL Highlights: ACL ($MM) and ACL/LHFI Ratio • ACL net increase of $6.0 million during the quarter was primarily a result of loan growth and a modest deterioration in asset quality • ACL coverage ratio to
Slide 11: Asset Quality and Reserve Trends
ASSET QUALITY AND RESERVE TRENDS Ongoing conservative credit management resulted in stable asset quality Asset Quality Highlights: Total NPLs ($MM) and ACL/NPL Ratios • Total non-performing loans at 3/31 increased by $19.7 million, $121.6 or 30.0% from 12/31, primarily related to two Commercial Real
Slide 12: Net Interest Income (NII)
NET INTEREST INCOME (NII) Net Interest Income¹ ($MM) and Net Interest Margin¹ Net Interest Income and Net Interest Margin Highlights: $268.9 • $5.2 million total loan purchase accounting accretion (PAA) in Q1 $260.7 17.7 2023, a decrease from $8.4 million in the prior quarter 8.4 0.3 $241.1 $250.9 $
Slide 13: Net Interest Income (cont'd)
NET INTEREST INCOME (cont’d) NIM Waterfall Analysis 0.06 0.01 0.15 3.61 (0.19) 0.02 (0.08) (0.05) (0.03) 3.36 (0.14) RATE IMPACT MIX IMPACT 22 A ts sh s s A ts s s 23 4Q - PA en Ca os it ing PA en osit i ng 1Q ex st m ep rr ow an tm ep ow s ve D Lo es D rr oa n I n Bo In v Bo L 13
Slide 14: Loan Portfolio Re-pricing Profile
LOAN PORTFOLIO RE-PRICING PROFILE Loan Re-pricing Characteristics Loan Re-pricing Gap Schedule ¹ ($MM) $8,488 Variable, 11% $5,544 Fixed, 59% Libor 1M, 8% $2,730 SOFR 1M, 2% $1,484 Adjustable excl Libor 1M & <= 1 Yr > 1 Yr <= 3 Yr > 3 Yr <= 5 Yr > 5 Yr SOFR 1M, 20% Maturity / Re-pricing Buckets 1 Co
Slide 15: Investment Portfolio
INVESTMENT PORTFOLIO Investment Portfolio Highlights: • The Company sold $853.0 million in the available-for-sale securities portfolio, resulting in a realized pre-tax loss of $23.4 million. Beginning in Quarterly New Purchases: Weighted Avg Yield mid-March, this transaction is expected to have a po
Slide 16: Non-Interest Income
NON-INTEREST INCOME Non-interest Income by Type ² Dollars in millions 1Q22 4Q22 1Q23 Payment services revenues $ 14.8 $ 19.4 $ 18.7 Other Income, 6% Mortgage banking revenues 8.4 2.6 2.3 Other Service Payment Services, 46% Wealth management revenues 8.1 8.4 9.0 Charges & Fees, 6% Service charges on
Slide 17: Non-Interest Expense
NON-INTEREST EXPENSE Non-interest Expense ($MM) and Efficiency Ratio Dollars in millions 207.2 210.3 1Q22 4Q22 1Q23 Salaries and wages $ 60.0 $ 75.4 $ 65.6 173.2 175.3 168.7 170.1 165.8 165.8 164.5 Employee benefits 21.2 17.3 22.8 89.6% Occupancy and equipment 15.4 17.9 18.4 142.0 Other intangible a
Slide 18: 2023 Guidance Summary
2023 GUIDANCE SUMMARY • Loan growth now expected to be low-single-digit end-of-period growth for full year • Securities cash flow $60-70 million per month, at 2.20-2.40% Balance Sheet • Average earning assets will approximate $28 billion for the remainder of the year • Deposits assumed down low-sing
Slide 19: 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 c
Slide 20: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 1Q22 2Q22 3Q22 4Q22 1Q23 (Dollars in millions) Total common stockholders' equity (GAAP) (A) $ 3,441.1 $ 3,271.9 $ 3,005.5 $ 3,073.8 $ 3,160.3 Less goodwill and other intangible assets (excluding mortgage servicing rights) 1,275.2 1,232.9 1,229.0 1,225.9 1,221.9 Tangible commo
Slide 21: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 1Q22 2Q22 3Q22 4Q22 1Q23 (Dollars in millions) Total non-interest expense $ 207.2 $ 210.3 $ 173.2 $ 175.3 $ 165.8 Less: Acquisition-related expense 65.2 45.8 4.0 3.9 — Less: Litigation accrual — — 0.5 1.3 — Adjusted non-interest expense $ 142.0 $ 164.5 $ 168.7 $ 170.1 $ 165.8
Slide 22: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 1Q22 2Q22 3Q22 4Q22 1Q23 (Dollars in millions) Net interest income on a fully-taxable equivalent ("FTE") basis (A) 180.0 241.1 268.9 260.7 240.7 Less purchase accounting accretion 7.6 16.7 17.7 8.4 5.2 Less PPP income 2.8 1.1 0.3 — — Adjusted net interest income (B) 169.6 223
Slide 23: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 1Q22 2Q22 3Q22 4Q22 1Q23 (Dollars in millions); all adjustments are after-tax Net (loss) income (A) (33.4) 64.1 85.7 85.8 56.3 Plus: Non-PCD CECL Day 2 provision 55.2 — — — — Plus: Acquisition-related expenses 52.7 36.6 3.2 3.0 — Plus: MSR fair value adjustments (2.7) — — — —