Slide 1: 4Q 2022 Investor Presentation
4Q 2022 Investor Presentation Exhibit 99.2 January 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 Financial Highlights Balance Sheet Capital Assets $32.3 Billion Total RBC*2 12.55% LHFI* $18.1 Billion CET1*2 10.51% Deposits $25.1 Billion Leverage2 7.75% A
Slide 4: Fourth Quarter 2022 Highlights
FOURTH QUARTER 2022 HIGHLIGHTS Earnings • Net income of $85.8 million, or $0.82 per share, included $(0.07) of selected items and $(0.07) less accretion vs. Q3 • Net interest margin (NIM) of 3.61%; adjusted NIM of 3.49%1, an increase of 2 basis points from the third quarter • Efficiency ratio of 57.
Slide 5: Fourth Quarter 2022 Results
FOURTH QUARTER 2022 RESULTS Summary of Q4 2022 Results $ amounts in millions, except per share data 4Q22 Net interest income $258.4 Provision for (reduction in) credit losses 14.7 Non-interest income 41.6 Non-interest expense 175.3 Income before taxes 110.0 Income taxes 24.2 Net income $85.8 Diluted
Slide 6: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO Loans Held for Investment Commercial RE, 47% Construction RE, 11% Residential RE, 12% Agriculture RE, 4% Consumer, 6%Commercial, 16% Agriculture, 4% Loans by Geography MT, 15% WY, 5% ID, 5% WA, 7% OR, 9% SD, 10%ND, 1% NE, 6% IA, 10% KS, 2% AZ, 6% CO, 8% Other, 16% Revolvin
Slide 7: Deposit Base
DEPOSIT BASE Total Deposits Non-interest bearing, 30% Demand, 29% Savings, 33% Time, 8% Deposits by State MT, 25% WY, 12% ID, 7% WA, 3% OR, 11% SD, 15% NE, 9% IA, 10% MO, 1% AZ, 3% CO, 4% Mix of Consumer and Business Deposits ¹ 50% 49% 49% 51% 52% 50% 51% 51% 49% 48% Total Consumer Deposits Total Bu
Slide 8: Capital and Liquidity
Total Risk-Based Capital Ratios* 14.11% 13.79% 13.16% 12.50% 12.55% 11.77% 11.52% 11.09% 10.49% 10.51% 0.72% 1.62% 2.28% 2.07% 2.01% 2.04% CET1 Non-common Tier1 Total RBC 4Q21 1Q22 2Q22 3Q22 4Q22² CAPITAL AND LIQUIDITY Highly liquid and flexible balance sheet with strong capital position Common Equi
Slide 9: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Funded ACL and ACL/LHFI Ratio $122.3 $247.2 $220.4 $213.0 $220.1 $108.5 $138.7 1.31% 1.46% 1.28% 1.21% 1.22% Total Funded ACL GWB Contribution As a % of Loans HFI 4Q21 1Q22 2Q22 3Q22 4Q22 9 Reserve build resulting from strong loan growth and additional qualitative macro a
Slide 10: Asset Quality and Reserve Trends
ASSET QUALITY AND RESERVE TRENDS Net Charge-offs Ratio $2.7 $16.7 $0.3 $12.0 $1.1 $1.3 $15.4 0.11% 0.47% 0.01% 0.27% 0.02% 0.06% Net Charge-offs GWB Charge-offs % of Average Loans % FIBK Only 4Q21 1Q22 2Q22 3Q22 4Q22 Proactive credit management resulted in strong asset quality improvement Total NPLs
Slide 11: Net Interest Income (NII)
NET INTEREST INCOME (NII) Total Net Interest Income¹ and Net Interest Margin¹ $122.6 $180.0 $241.1 $268.9 $260.7 $111.0 $169.6 $223.3 $250.9 $252.3 9.7 2.8 1.1 0.3 1.9 7.6 16.7 17.7 8.4 2.69% 2.80% 3.25% 3.71% 3.61% 2.46% 2.65% 3.01% 3.47% 3.49% 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 3.71 0.21 0.12 0.01 (0.20) — (0.08) (0.12) 0.01 0.02 — — — (0.07) 3.61 3Q 22 Lo an s e x-P AA 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 4Q 22 Scheduled Purchase
Slide 13: Loan Portfolio Re-Pricing Profile
LOAN PORTFOLIO RE-PRICING PROFILE Loan Repricing Gap Schedule ¹ $8,575 $5,391 $2,633 $1,499 Maturity / Repricing Buckets <= 1 Yr > 1 Yr <= 3 Yr > 3 Yr <= 5 Yr > 5 Yr 13 Loan Repricing Characteristics Fixed, 58% Variable, 12% Libor 1M, 9% Adjustable (Excl: 1M Libor), 21% 1 Contractual repricing bench
Slide 14: Investment Portfolio
INVESTMENT PORTFOLIO Quarterly New Purchases: Weighted Avg Yield 1.5% 2.2% 3.3% 3.9% 4.4% 4Q21 1Q22 2Q22 3Q22 4Q22 14 Investment Portfolio Highlights: • Investment portfolio is expected to yield cash-flow at $70-80 million per month for the next twelve months, with a roll-off yield in the 2.1% to 2.
Slide 15: Non-interest Income by Type
15 Non-interest Income by Type Payment Services, 47% Mortgage Banking, 6%Wealth Management, 20% Deposit Service Charges, 12% Other Service Charges & Fees, 7% Other Income, 8% $ amounts in millions 4Q21 3Q22 4Q22 Payment Services $ 11.3 $ 20.4 $ 19.4 Mortgage Banking 8.0 2.7 2.6 Wealth Management 7.2
Slide 16: Non-interest Expense
NON-INTEREST EXPENSE 16 Non-interest Expense Notes: • Q4 results included a $1.3 million litigation accrual in other expenses, and $2.2 million in net other real estate owned (OREO) expense • Q4 salaries and wages includes an additional performance-related incentive adjustment of $4.2 million based
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
4Q21 1Q22 2Q22 3Q22 4Q22 (Dollars in millions) Total common stockholders' equity (GAAP) (A) $ 1,986.6 $ 3,441.1 $ 3,271.9 $ 3,005.5 $ 3,073.8 Less goodwill and other intangible assets (excluding mortgage servicing rights) 690.9 1,275.2 1,232.9 1,229.0 1,225.9 Tangible common stockholders' equity (No
Slide 19: Non-GAAP Reconciliation: Adjusted Efficiency Ratio
4Q21 1Q22 2Q22 3Q22 4Q22 (Dollars in millions) Total non-interest expense $ 102.2 $ 207.2 $ 210.3 $ 173.2 $ 175.3 Less: Acquisition-related expense 5.0 65.2 45.8 4.0 3.9 Less: Litigation accrual (recovery) (0.2) — — 0.5 1.3 Adjusted non-interest expense $ 97.4 $ 142.0 $ 164.5 $ 168.7 $ 170.1 Less: I
Slide 20: Non-GAAP Reconciliation: Adjusted Net Interest Margin
4Q21 1Q22 2Q22 3Q22 4Q22 (Dollars in millions) Net interest income on a fully-taxable equivalent ("FTE") basis 122.6 180.0 241.1 268.9 260.7 Less purchase accounting accretion 1.9 7.6 16.7 17.7 8.4 Less PPP Income 9.7 2.8 1.1 0.3 — Adjusted net interest income (A) 111.0 169.6 223.3 250.9 252.3 Avera
Slide 21: Non-GAAP Reconciliation: Adjusted Return on Average Equity
4Q21 1Q22 2Q22 3Q22 4Q22 (Dollars in millions); all adjustments are after-tax Reported net income (loss) 51.1 (33.4) 64.1 85.7 85.8 Plus: Non-PCD CECL Day 2 provision — 55.2 — — — Plus: Acquisition-related expenses 3.8 52.7 36.6 3.2 3.0 Plus: MSR fair value adjustments (0.8) (2.7) — — — Plus: Other