29 slides from First Interstate Bancsystem's conference presentation, May 12, 2015
Slide 1: Presenting at the DA Davidson Annual Financial Services Conference
presenting at the DA Davidson th Annual Financial Services Conference Denver, Colorado May 12-13, 2015 Exhibit 99.1
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 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, that involve inh
Slide 3: Why invest in First Interstate BancSystem?
Why invest in First Interstate BancSystem? Committed to increasing Shareholder Value Long Track Record of Profitability Low-Cost Core Deposit Funding Conservative Credit Strategy which Limits Exposure to Large Losses Diversified Customer Base tempers Economic Volatility Significant Market Share prov
Slide 4: Total Return to Shareholders
Total Return to Shareholders Since the IPO in March 2010 over 100% increase in shareholder value
Slide 5: Maximizing Shareholder Value
Maximizing Shareholder Value Management’s priority is to achieve growth through:
Slide 6: Strong Capital allows Growth
Strong Capital allows Growth
Slide 7: Our History: Strong Earnings Performance and Stable Balance Sheet
Our History: Strong Earnings Performance and Stable Balance Sheet
Slide 8: Core Pre-tax Pre-Provision Income
Core Pre-tax Pre-Provision Income exclusive of acquisition and litigation costs (in thousands)
Slide 9: Core Earnings Per Share
Core Earnings Per Share exclusive of acquisition and litigation costs
Slide 10: Stable Earnings Ratios
Stable Earnings Ratios Annualized Return on Avg. Common Equity Annualized Return on Avg. Assets
Slide 11: $2.3 Billion Low-risk Investment Portfolio
$2.3 Billion Low-risk Investment Portfolio Effec tive Duration of the portfolio is 2.61 years Average yield of the portfolio is 1.70% Strategy: Maintain short duration with minimal credit risk and an emphasis on stable cash flows and extension risk mitigation. (as of 3/30/15)
Slide 12: $4.9 Billion in Loans
$4.9 Billion in Loans Diversified Loan Portfolio $4.9 Billion in Loans Loan growth 12.9% year over year, including the acquisition of Mountain West Bank 4.6% year over year organic growth Positive economic indicators Low unemployment Increasing demand Strong indirect lending network Conservative cre
Slide 13: Returning to a Normalized Credit Environment
Returning to a Normalized Credit Environment (In thousands) 1.11% of Total Assets
Slide 14: Strong Core Deposit Base
Strong Core Deposit Base (as of 3/31/2015) Low Cost of Funds 24 basis points
Slide 15: Growth Strategy
Growth Strategy
Slide 16: LEMON EFANA
LEMON EFANA é SOUTHsSDAKOT 2 j ae he: mi “i hy YOMLN-G
Slide 17: Diversified Industries soften impact of Economic Volatility
Diversified Industries soften impact of Economic Volatility Agriculture Cattle Crops 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 1
Slide 18: Tourism, Healthcare, Military/Government
Tourism Glacier National Park, MT Yellowstone National Park, WY Major National Parks Summer/Winter Opportunities Mount Rushmore, SD Healthcare Aging population base Regional healthcare centers Veterans Administration healthcare Military /Government Ellsworth Air Force Base, SD Malmstrom Air Force Ba
Slide 19: Low Unemployment allows room for expansion
Low Unemployment allows room for expansion
Slide 20: Market Share – a sweet spot
Market Share – a “sweet spot” (June 30, 2014) Locations Market Share* Riverton, WY 44% Sheridan, WY 40% Laramie, WY 33% Missoula, MT 31% Gillette, WY 30% Casper, WY 27% Billings, MT 23% Great Falls, MT 23% Helena, MT 23% Spearfish, SD 21% Jackson, WY-ID 17% Bozeman, MT 16% Kalispell, MT 13% Cheyenne
Slide 21: Delivering what the Customer Needs
Delivering what the Customer Needs: Wealth Management AUM - $4.6 Billion and growing Bakken influence creating wealth Wealth advisors positioned across our footprint Mortgage Lending Strong purchase activity within our markets Ability to expand our market share Recently opened a mortgage office in S
Slide 22: Moving forward
Moving forward Customer Centric Technology Expectations Reduce Bricks and Mortar Becoming flexible and responsive to the changing environment
Slide 23: Why invest in First Interstate BancSystem?
Why invest in First Interstate BancSystem? Because we’re: Committed to increasing Shareholder Value Have a Long Track Record of Profitability Provide Low-Cost Core Deposit Funding Our Conservative Credit Strategy Limits Exposure to Large Losses We have a Diversified Customer Base that tempers Econom
Slide 24: Appendix
Appendix
Slide 25: Company Snap Shot Company Performance
Company Snap Shot Company Performance Long Term History with Solid Performance Headquartered in Billings, MT with 80 banking offices across Montana, Wyoming and South Dakota. Total Assets of $8.5 Billion; Total Loans of $4.9 Billion. Regional bank offering retail and commercial banking, along with w
Slide 26: Balance Sheet
Balance Sheet 2015 2014 2014 2014 2014 BALANCE SHEET SUMMARIES 31-Mar 31-Dec 30-Sep 30-Jun 31-Mar Assets: Cash and cash equivalents $ 637,803 $ 798,670 $ 819,963 $ 503,648 $ 610,531 Investment securities 2,340,904 2,287,110 2,169,774 2,093,985 2,095,088 Total loans 4,927,306 4,897,443 4,854,382 4,50
Slide 27: Income Statement
Income Statement 2015 2014 INCOME STATEMENT SUMMARIES 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr Net interest income $ 64,325 $ 65,516 $ 65,082 $ 59,727 $ 58,136 Net interest income on a fully-taxable equivalent ("FTE") basis 65,381 66,585 66,129 60,806 59,243 Provision for loan losses 1,095 (2,001) (5
Slide 28: Performance Metrics
Performance Metrics PER COMMON SHARE DATA Net income - basic $ 0.46 $ 0.50 $ 0.43 $ 0.48 $ 0.49 Net income - diluted 0.46 0.49 0.42 0.47 0.48 Core net income - diluted 0.46 0.53 0.49 0.48 0.48 Cash dividend paid 0.20 0.16 0.16 0.16 0.16 Book value at period end 20.13 19.85 19.40 18.95 18.60 Tangible
Slide 29: Asset Quality
Asset Quality 2015 2014 ASSET QUALITY Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Allowance for loan losses $ 75,336 $ 74,200 $ 74,231 $ 78,266 $ 81,371 As a percentage of period-end loans 1.53 % 1.52 % 1.53 % 1.74 % 1.86 % Net charge-offs (recoveries) during quarter $ (41) $ $ 4,296 $ 1,104 $ (1,032) Annual