Slide 1: 3Q 2022 Investor Presentation
3Q 2022 Investor Presentation Exhibit 99.2 October 25, 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 $31.3 Billion Total RB2 12.92% Loans HFI $17.6 Billion CET12 10.84% Deposits $25.9 Billion Leverage2 7.67%
Slide 4: Third Quarter 2022 Highlights
THIRD QUARTER 2022 HIGHLIGHTS Earnings • Net income of $85.7 million, or $0.80 per share, driven by accelerating loan growth and an increase in NIM • Net interest margin of 3.71%; adjusted NIM of 3.47%1, increase of 46 basis points from the second quarter • Reported efficiency ratio of 58.4%; adjust
Slide 5: Third Quarter 2022 Results
THIRD QUARTER 2022 RESULTS Summary of Q3 2022 Results $ amounts in millions, except per share data 3Q22 Net interest income (non-FTE) $266.8 Provision for (reduction in) credit losses 8.4 Non-interest income 22.9 Non-interest expense 173.2 Income before taxes 108.1 Income taxes 22.4 Net income $85.7
Slide 6: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO Loans Held for Investment Commercial RE, 45% Construction RE, 11% Residential RE, 12% Agriculture RE, 5% Consumer, 6%Commercial, 17% Agriculture, 4% Loans by Geography MT, 15% WY, 5% ID, 5% WA, 7% OR, 10% SD, 11%ND, 1% NE, 6% IA, 10% KS, 1% AZ, 6% CO, 7% Other, 16% Revolvi
Slide 7: Deposit Base
DEPOSIT BASE Total Deposits Non-interest bearing, 32% Demand, 29% Savings, 33% Time, 6% Deposits by State MT, 23% WY, 12% ID, 7% WA, 3% OR, 11% SD, 16% NE, 9% IA, 10% MO, 1% AZ, 3% CO, 4% Other, 1% Mix of Consumer and Business Deposits ¹ 50% 50% 49% 49% 51% 50% 50% 51% 51% 49% Total Consumer Deposit
Slide 8: Capital and Liquidity
Total Risk-Based Capital Ratios 14.00% 14.11% 14.27% 13.60% 12.92% 11.59% 11.77% 11.91% 11.46% 10.84% 0.71% 0.72% 1.70% 1.62% 2.36% 2.14% 2.08% CET1 Non-common Tier1 Total Capital 3Q21 4Q21 1Q22 2Q22 3Q22² CAPITAL AND LIQUIDITY Highly liquid and flexible balance sheet with strong capital position Co
Slide 9: Allowance for Credit Losses (ACL)
ALLOWANCE FOR CREDIT LOSSES (ACL) Funded ACL and ACL/Loans HFI % $135.1 $122.3 $247.2 $220.4 $213.0 $108.5 $138.7 1.40% 1.31% 1.46% 1.28% 1.21% Total Funded ACL GWB Contribution As a % of Loans HFI 3Q21 4Q21 1Q22 2Q22 3Q22 9 Reserve release resulting from strong credit improvement partially offset b
Slide 10: Asset Quality and Reserve Trends
ASSET QUALITY AND RESERVE TRENDS Net Charge-off Ratio $0.6 $2.7 $16.7 $0.3 $12.0 $1.3 $15.4 0.02% 0.11% 0.47% 0.01% 0.27% 0.06% Net Charge-offs GWB Charge-offs % of Average Loans % FIBK Only 3Q21 4Q21 1Q22 2Q22 3Q22 Proactive credit management resulted in strong asset quality improvement Total Non-P
Slide 11: Net Interest Income
NET INTEREST INCOME Total Net Interest Income¹ and Net Interest Margin¹ $127.7 $122.6 $180.0 $241.1 $268.9 $111.2 $111.0 $169.6 $223.3 $250.9 14.2 9.7 2.8 1.1 0.3 2.3 1.9 7.6 16.7 17.7 2.90% 2.69% 2.80% 3.25% 3.71% 2.60% 2.46% 2.65% 3.01% 3.47% Adjusted NII ² PPP Income Loan PAA Net Interest Margin
Slide 12: Net Interest Income (cont'd)
NET INTEREST INCOME (cont’d) 12 NIM Waterfall Analysis 3.25 0.27 0.18 0.01 (0.13) (0.01) (0.01) 0.02 0.04 (0.04) 0.16 0.00 0.00 (0.03) 3.71 2Q 22 Lo an s e x-P AA ¹ Inv es tm en ts Cash Dep osi ts Re po s Bo rro wing s Lo an PA A Lo an s Inv es tm en ts Cash Dep osi ts Re po s Bo rro wing s 3Q 22 Sc
Slide 13: Well Positioned to Benefit from Higher Rates
WELL POSITIONED TO BENEFIT FROM HIGHER RATES Loan Repricing Gap Schedule ¹ $8,576 $5,150 $2,472 $1,406 Maturity / Repricing Buckets <= 1 Yr > 1 Yr <= 3 Yr > 3 Yr <= 5 Yr > 5 Yr 13 Loan Repricing Characteristics Fixed, 56% Variable, 14% Libor 1M, 9% Adjustable (Excl: 1M Libor), 21% 1 Contractual repr
Slide 14: Investment Portfolio
INVESTMENT PORTFOLIO Quarterly New Purchases: Weighted Avg Yield 1.2% 1.5% 2.2% 3.3% 3.9% 3Q21 4Q21 1Q22 2Q22 3Q22 14 Investment Portfolio Highlights: • On September 1, the company sold the $500 million of US Treasury Notes previously swapped (terminated in Q2). The remaining deferred swap terminati
Slide 15: Non-interest Income by Type
15 Non-interest Income by Type ¹ Payment Services, 43% Mortgage Banking, 6% Wealth Management, 18% Deposit Service Charges, 12% Other Service Charges & Fees, 10% Other Income, 11% $ amounts in millions 3Q21 2Q22 3Q22 Payment Services $ 12.2 $ 19.5 $ 20.4 Mortgage Banking 11.6 5.0 2.7 Wealth Manageme
Slide 16: Non-Interest Expense
NON-INTEREST EXPENSE 16 Non-interest Expense Notes: • Q3 results included a $0.5 million litigation expense in other expenses • Q3 other expenses also include a $1.0 million increase in donation contributions, higher FDIC insurance costs, elevated fraud losses, IT and advertising expenses • Remainin
Slide 17: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 17 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 18: Non-GAAP Reconciliation: Tangible Equity and Book Value
3Q21 4Q21 1Q22 2Q22 3Q22 (Dollars in millions) Total common stockholders' equity (GAAP) (A) $ 1,984.8 $ 1,986.6 $ 3,441.1 $ 3,271.9 $ 3,005.5 Less goodwill and other intangible assets (excluding mortgage servicing rights) 693.3 690.9 1,275.2 1,232.9 1,229.0 Tangible common stockholders' equity (Non-
Slide 19: Non-GAAP Reconciliation: Adjusted Efficiency Ratio
3Q21 4Q21 1Q22 2Q22 3Q22 (Dollars in millions) Total non-interest expense $ 105.9 $ 102.2 $ 207.2 $ 210.3 $ 173.2 Less: Acquisition-related expense 6.6 5.0 65.2 45.8 4.0 Less: Litigation accrual (recovery) 1.2 (0.2) — — 0.5 Adjusted non-interest expense $ 98.1 $ 97.4 $ 142.0 $ 164.5 $ 168.7 Less: In
Slide 20: Non-GAAP Reconciliation: Adjusted Net Interest Margin
3Q21 4Q21 1Q22 2Q22 3Q22 (Dollars in millions) Net interest income on a fully-taxable equivalent ("FTE") basis 127.7 122.6 180.0 241.1 268.9 Less: Purchase accounting accretion 2.3 1.9 7.6 16.7 17.7 Less: PPP Income 14.2 9.7 2.8 1.1 0.3 Adjusted net interest income (A) 111.2 111.0 169.6 223.3 250.9
Slide 21: Non-GAAP Reconciliation: Adjusted Return on Average Equity
3Q21 4Q21 1Q22 2Q22 3Q22 (Dollars in millions); all adjustments are after-tax Reported net income (loss) 47.1 51.1 (33.4) 64.1 85.7 Plus: Non-PCD CECL Day 2 provision — — 55.2 — — Plus: Acquisition-related expenses 5.1 3.8 52.7 36.6 3.2 Plus: MSR fair value adjustments — (0.8) (2.7) — — Plus: Other