FIRST INTERSTATE BANCSYSTEM INC [FIBK] Filings

10-Q 1 fibk-20240630.htm 10-Q fibk-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________________________________________________________________________________________________________

FORM 10-Q

_____________________________________________________________________________________________________________________________________________________

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2024

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

COMMISSION FILE NUMBER 001-34653

________________________________________________________________________________________________________

FIRST INTERSTATE BANCSYSTEM, INC.

(Exact name of registrant as specified in its charter)

________________________________________________________________________________________________________


Delaware		81-0331430
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

401 North 31st Street
Billings,	MT	59101
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (406) 255-5311

N/A

(Former name, former address and former fiscal year, if changed since last report)

_________________________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.00001 par value	FIBK	NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.) Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date:


July 31, 2024 – Common stock			104,548,149

Quarterly Report on Form 10-Q


	FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
	Index
	June 30, 2024
		Page Nos.
	Part I - Financial Information

Item 1.	Financial Statements (Unaudited)

	Consolidated Balance Sheets	3

	Consolidated Statements of Income	4

	Consolidated Statements of Comprehensive Income	5

	Consolidated Statements of Changes in Stockholders’ Equity	6

	Consolidated Statements of Cash Flows	8

	Notes to Unaudited Consolidated Financial Statements	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	44

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	60

Item 4.	Controls and Procedures	62

	Part II - Other Information

Item 1.	Legal Proceedings	63

Item 1A.	Risk Factors	63

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63

Item 3.	Defaults Upon Senior Securities	63

Item 4.	Mine Safety Disclosures	63

Item 5.	Other Information	63

Item 6.	Exhibits	64

Signatures		65

Table of Contents

FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

(Unaudited)


	June 30, 2024		December 31, 2023
Assets
Cash and due from banks	$	390.2	$	378.2
Interest-bearing deposits in banks	568.2		199.7
Federal funds sold	0.1		0.1
Total cash and cash equivalents	958.5		578.0

Investment securities:
Available-for-sale, at fair value	5,603.1		5,841.5
Held-to-maturity (estimated fair values of $2,440.4 at June 30, 2024 and $2,874.0 at December 31, 2023)	2,798.5		3,207.9
Total investment securities	8,401.6		9,049.4
FHLB and FRB stock, at cost	182.3		223.2
Loans held for sale ($3.1 and $0.5 of which is recorded at fair value at June 30, 2024 December 31, 2023)	22.3		47.4
Loans held for investment, net of deferred fees and costs	18,235.0		18,279.6
Allowance for credit losses	(232.8)		(227.7)
Net loans held for investment	18,002.2		18,051.9
Goodwill	1,100.9		1,100.9
Company-owned life insurance	507.6		502.4
Premises and equipment, net of accumulated depreciation	436.5		444.3
Other intangibles, net of accumulated amortization	74.0		81.4
Accrued interest receivable	126.4		129.1
Mortgage servicing rights, net of accumulated amortization	27.0		28.3
Other real estate owned	6.7		16.5
Deferred tax asset, net	154.5		150.0
Other assets	289.0		268.4
Total assets	$	30,289.5	$	30,671.2
Liabilities and Stockholders’ Equity
Deposits:
Non-interest bearing	$	6,174.0	$	6,029.6
Interest bearing	16,696.7		17,293.5
Total deposits	22,870.7		23,323.1
Securities sold under repurchase agreements	741.8		782.7
Accounts payable and accrued expenses	398.3		380.4
Accrued interest payable	71.1		52.2

Other borrowed funds	2,430.0		2,603.0
Long-term debt	383.4		120.8
Allowance for credit losses on off-balance sheet credit exposures	5.8		18.4

Subordinated debentures held by subsidiary trusts	163.1		163.1
Total liabilities	27,064.2		27,443.7
Stockholders’ equity:
Preferred stock, no par value; 100,000 shares authorized; none issued and outstanding	—		—
Common stock and additional paid-in-capital, $0.00001 par value; 150,000,000 shares authorized; 104,560,618 and 103,941,626 shares were issued and outstanding at June 30, 2024 and December 31, 2023	2,453.9		2,448.9
Retained earnings	1,156.9		1,135.1
Accumulated other comprehensive loss, net	(385.5)		(356.5)
Total stockholders’ equity	3,225.3		3,227.5
Total liabilities and stockholders’ equity	$	30,289.5	$	30,671.2

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Interest income:
Interest and fees on loans	$	252.8	$	241.6	$	504.9	$	477.2
Interest and dividends on investment securities:
Taxable	62.3		66.1		126.8		138.3
Exempt from federal taxes	0.7		0.8		1.4		1.7
Interest and dividends on FHLB and FRB stock	3.3		3.4		6.6		6.4
Interest on deposits in banks	4.9		5.4		9.0		9.6

Total interest income	324.0		317.3		648.7		633.2
Interest expense:
Interest on deposits	80.9		53.6		160.0		93.9
Interest on securities sold under repurchase agreements	1.9		1.5		4.2		2.6
Interest on other borrowed funds	31.8		39.3		67.4		70.5
Interest on long-term debt	4.4		1.4		8.7		2.9
Interest on subordinated debentures held by subsidiary trusts	3.3		3.1		6.6		6.0
Total interest expense	122.3		98.9		246.9		175.9
Net interest income	201.7		218.4		401.8		457.3
Provision for credit losses	9.0		11.7		14.3		26.9
Net interest income after provision for credit losses	192.7		206.7		387.5		430.4
Non-interest income:
Payment services revenues	18.6		20.1		37.0		38.8
Mortgage banking revenues	1.7		2.6		3.4		4.9
Wealth management revenues	9.4		8.8		18.6		17.8
Service charges on deposit accounts	6.4		5.8		12.4		11.0
Other service charges, commissions, and fees	2.1		2.4		4.3		4.8

Investment securities losses, net	—		(0.1)		—		(23.5)
Other income	4.4		4.5		9.0		6.7

Total non-interest income	42.6		44.1		84.7		60.5
Non-interest expense:
Salaries and wages	66.3		68.1		131.5		133.7
Employee benefits	16.9		19.3		36.2		42.1
Outsourced technology services	14.0		15.3		27.6		30.0
Occupancy, net	11.7		11.7		24.0		24.2
Furniture and equipment	5.2		5.6		10.2		11.5
OREO expense, net of income	2.0		0.6		4.0		0.8
Professional fees	5.1		5.3		11.9		9.8
FDIC insurance premiums	6.6		4.7		14.0		10.4


Other intangibles amortization	3.7		3.9		7.4		7.9
Other expenses	25.4		29.4		50.3		59.3


Total non-interest expense	156.9		163.9		317.1		329.7
Income before income tax	78.4		86.9		155.1		161.2
Provision for income tax	18.4		19.9		36.7		37.9
Net income	$	60.0	$	67.0	$	118.4	$	123.3

Earnings per common share (Basic)	$	0.58	$	0.65	$	1.15	$	1.19
Earnings per common share (Diluted)	$	0.58	$	0.65	$	1.15	$	1.19

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income	$	60.0	$	67.0	$	118.4	$	123.3
Other comprehensive income (loss), before tax:
Investment securities available for sale:
Change in net unrealized gains (losses) during the period	2.5		(57.5)		(23.9)		20.7
Reclassification adjustment for net losses included in income	—		0.1		—		23.5
Reclassification adjustment for securities transferred from held-to-maturity to available-for-sale	—		—		—		(7.2)
Net change in unamortized losses on available-for-sale investment securities transferred into held-to-maturity	(0.1)		(0.4)		(0.3)		(0.8)
Cash flow hedges:
Change in unrealized gains on derivatives	(5.1)		(23.6)		(22.5)		(14.1)
Reclassification adjustment for derivatives net losses included in income	4.6		1.5		8.1		2.0


Other comprehensive income (loss), before tax	1.9		(79.9)		(38.6)		24.1
Deferred tax (expense) benefit related to other comprehensive (loss) income	(0.5)		20.0		9.6		(6.0)
Other comprehensive income (loss), net of tax	1.4		(59.9)		(29.0)		18.1
Comprehensive income, net of tax	$	61.4	$	7.1	$	89.4	$	141.4

See accompanying notes to unaudited consolidated financial statements.

Table of Contents


FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (In millions, except share and per share data) (Unaudited)
	Three Months Ended June 30,
	Common stock		Retained earnings		Accumulated other comprehensive loss		Total stockholders’ equity
Balance at March 31, 2024	$	2,450.7	$	1,145.9	$	(386.9)	$	3,209.7


Net income	—		60.0		—		60.0

Other comprehensive loss, net of tax expense	—		—		1.4		1.4
Common stock transactions:
1,758 common shares purchased and retired	—		—		—		—

52,735 non-vested common shares issued	—		—		—		—
61,982 non-vested common shares forfeited or canceled	—		—		—		—



Stock-based compensation expense	3.2		—		—		3.2
Common stock cash dividends declared ($0.47 per share)	—		(49.0)		—		(49.0)
Balance at June 30, 2024	$	2,453.9	$	1,156.9	$	(385.5)	$	3,225.3

	Common stock		Retained earnings		Accumulated other comprehensive loss		Total stockholders’ equity
Balance at March 31, 2023	$	2,478.7	$	1,080.7	$	(399.1)	$	3,160.3


Net income	—		67.0		—		67.0

Other comprehensive loss, net of tax expense	—		—		(59.9)		(59.9)
Common stock transactions:
348 common shares purchased and retired	—		—		—		—

660,048 non-vested common shares issued	—		—		—		—
21,035 non-vested common shares forfeited or canceled	—		—		—		—



Stock-based compensation expense	2.7		—		—		2.7
Common stock cash dividends declared ($0.47 per share)	—		(48.9)		—		(48.9)
Balance at June 30, 2023	$	2,481.4	$	1,098.8	$	(459.0)	$	3,121.2
See accompanying notes to unaudited consolidated financial statements.

Table of Contents


FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (continued) (In millions, except share and per share data) (Unaudited)
	Six Months Ended June 30,
	Common stock		Retained earnings		Accumulated other comprehensive loss		Total stockholders’ equity
Balance at December 31, 2023	$	2,448.9	$	1,135.1	$	(356.5)	$	3,227.5
Cumulative change related to the adoption of ASU 2023-02	—		1.2		—		1.2
Adjusted balance at January 1, 2024	2,448.9		1,136.3		(356.5)		3,228.7
Net income	—		118.4		—		118.4

Other comprehensive loss, net of tax expense	—		—		(29.0)		(29.0)
Common stock transactions:
45,448 common shares purchased and retired	(1.1)		—		—		(1.1)

738,098 non-vested common shares issued	—		—		—		—
73,658 non-vested common shares forfeited or canceled	—		—		—		—



Stock-based compensation expense	6.1		—		—		6.1
Common cash dividends declared ($0.94 per share)	—		(97.8)		—		(97.8)
Balance at June 30, 2024	$	2,453.9	$	1,156.9	$	(385.5)	$	3,225.3

	Common stock		Retained earnings		Accumulated other comprehensive loss		Total stockholders’ equity
Balance at December 31, 2022	$	2,478.2	$	1,072.7	$	(477.1)	$	3,073.8


Net income	—		123.3		—		123.3

Other comprehensive income, net of tax expense	—		—		18.1		18.1
Common stock transactions:
55,428 common shares purchased and retired	(1.8)		—		—		(1.8)

670,911 non-vested common shares issued	—		—		—		—
36,823 non-vested common shares forfeited or canceled	—		—		—		—



Stock-based compensation expense	5.0		—		—		5.0
Common cash dividends declared ($0.94 per share)	—		(97.2)		—		(97.2)
Balance at June 30, 2023	$	2,481.4	$	1,098.8	$	(459.0)	$	3,121.2
See accompanying notes to unaudited consolidated f

FIRST INTERSTATE BANCSYSTEM INC [FIBK] Filings
10-Q	[2024-08-02]
10-Q	[2024-05-03]
10-K	[2024-02-29]
10-Q	[2023-11-03]
10-Q	[2023-08-04]
10-Q	[2023-05-05]
10-K	[2023-02-24]
10-Q	[2022-11-07]
10-Q	[2022-08-05]
10-Q	[2022-05-09]
10-K	[2022-02-25]
10-Q	[2021-11-04]
10-Q	[2021-08-06]
10-Q	[2021-05-07]
10-K	[2021-03-01]
10-Q	[2020-11-04]
10-Q	[2020-08-07]
10-Q	[2020-05-11]
10-K	[2020-02-27]
10-Q	[2019-11-06]
10-Q	[2019-08-07]
10-Q	[2019-05-08]
10-K	[2019-02-27]
10-Q	[2018-11-07]
10-Q	[2018-08-07]
10-Q	[2018-05-09]
10-K	[2018-02-28]
10-Q	[2017-11-08]
10-Q	[2017-08-09]
10-Q	[2017-05-09]
10-K	[2017-03-02]
10-Q	[2016-11-08]
10-Q	[2016-08-05]
10-Q	[2016-05-06]
10-K	[2016-03-01]
10-Q	[2015-11-09]
10-Q	[2015-08-06]
10-Q	[2015-05-07]
10-K	[2015-03-02]
10-Q	[2014-11-07]
10-Q	[2014-08-01]
10-Q	[2014-05-02]
10-K	[2014-02-28]
10-Q	[2013-10-31]
10-Q	[2013-07-31]
10-Q	[2013-05-01]
10-K	[2013-03-01]
10-Q	[2012-11-07]
10-Q	[2012-08-09]
10-Q	[2012-05-09]
10-K	[2012-02-28]