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First Interstate Bancsystem

Financials

Price	40.58	EPS	2
Shares	65	P/E	21
MCap	2,639	P/FCF	47
Net Debt	-1,270	EBIT	227
TEV	1,370	TEV/EBIT	6
TTM 2019-09-30, in MM, except price, ratios

Filings

10-Q	2020-03-31	Filed 2020-05-11
10-K	2019-12-31	Filed 2020-02-27
10-Q	2019-09-30	Filed 2019-11-06
10-Q	2019-06-30	Filed 2019-08-07
10-Q	2019-03-31	Filed 2019-05-08
10-K	2018-12-31	Filed 2019-02-27
10-Q	2018-09-30	Filed 2018-11-07
10-Q	2018-06-30	Filed 2018-08-07
10-Q	2018-03-31	Filed 2018-05-09
10-K	2017-12-31	Filed 2018-02-28
10-Q	2017-09-30	Filed 2017-11-08
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-09
10-K	2016-12-31	Filed 2017-03-02
10-Q	2016-09-30	Filed 2016-11-08
10-Q	2016-06-30	Filed 2016-08-05
10-Q	2016-03-31	Filed 2016-05-06
10-K	2015-12-31	Filed 2016-03-01
10-Q	2015-09-30	Filed 2015-11-09
10-Q	2015-06-30	Filed 2015-08-06
10-Q	2015-03-31	Filed 2015-05-07
10-K	2014-12-31	Filed 2015-03-02
10-Q	2014-09-30	Filed 2014-11-07
10-Q	2014-06-30	Filed 2014-08-01
10-Q	2014-03-31	Filed 2014-05-02
10-K	2013-12-31	Filed 2014-02-28
10-Q	2013-09-30	Filed 2013-10-31
10-Q	2013-06-30	Filed 2013-07-31
10-Q	2013-03-31	Filed 2013-05-01
10-K	2012-12-31	Filed 2013-03-01
10-Q	2012-09-30	Filed 2012-11-07
10-Q	2012-06-30	Filed 2012-08-09
10-Q	2012-03-31	Filed 2012-05-09
10-K	2011-12-31	Filed 2012-02-28
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-06-30	Filed 2011-08-05
10-Q	2011-03-31	Filed 2011-05-06
10-K	2010-12-31	Filed 2011-02-28
10-Q	2010-09-30	Filed 2010-11-04
10-Q	2010-06-30	Filed 2010-07-30
10-Q	2010-03-31	Filed 2010-05-03
10-K	2009-12-31	Filed 2010-02-19

Reports

8-K	2020-05-15	Enter Agreement, Off-BS Arrangement, Exhibits
8-K	2020-05-13	Regulation FD, Other Events, Exhibits
8-K	2020-05-11	Regulation FD, Exhibits
8-K	2020-05-05	Shareholder Vote, Regulation FD, Exhibits
8-K	2020-04-30	Regulation FD, Exhibits
8-K	2020-04-30	Earnings, Other Events, Exhibits
8-K	2020-04-15	Other Events, Exhibits
8-K	2020-03-20	Regulation FD, Exhibits
8-K	2020-03-18	Regulation FD, Exhibits
8-K	2020-02-19	Other Events, Exhibits
8-K	2020-02-18	Officers, Other Events, Exhibits
8-K	2020-01-29	Earnings, Other Events, Exhibits
8-K	2020-01-06	Officers, Exhibits
8-K	2019-11-15	Other Events, Exhibits
8-K	2019-10-30	Other Events, Exhibits
8-K	2019-10-23	Earnings, Exhibits
8-K	2019-07-30	Earnings, Other Events, Exhibits
8-K	2019-06-11	Other Events
8-K	2019-05-03	Shareholder Vote, Regulation FD, Other Events, Exhibits
8-K	2019-04-25	Earnings, Exhibits
8-K	2019-04-12	Other Events
8-K	2019-04-08	M&A, Other Events, Exhibits
8-K	2019-04-08	M&A, Other Events, Exhibits
8-K	2019-03-27	Other Events, Exhibits
8-K	2019-03-18	Other Events, Exhibits
8-K	2019-03-18	Other Events
8-K	2019-03-15	Regulation FD, Exhibits
8-K	2019-01-30	Earnings, Other Events, Exhibits
8-K	2018-10-27	Officers
8-K	2018-10-24	Earnings, Other Events, Exhibits
8-K	2018-10-11	Enter Agreement, Other Events, Exhibits
8-K	2018-10-11	Enter Agreement, Other Events, Exhibits
8-K	2018-08-16	M&A, Other Events, Exhibits
8-K	2018-08-14	Other Events, Exhibits
8-K	2018-08-09	Regulation FD, Exhibits
8-K	2018-08-01	Other Events, Exhibits
8-K	2018-07-25	Earnings, Exhibits
8-K	2018-05-02	Shareholder Vote
8-K	2018-04-27	Officers, Exhibits
8-K	2018-04-25	Earnings, Other Events, Exhibits
8-K	2018-04-25	Enter Agreement, Other Events, Exhibits
8-K	2018-04-03	Officers, Exhibits
8-K	2018-03-12	Officers
8-K	2018-03-05	Officers
8-K	2018-01-30	Earnings, Other Events, Exhibits
8-K	2018-01-23	Officers, Exhibits

First Interstate Bancsystem Earnings 2020-03-31

Balance Sheet	Income Statement	Cash Flow

Document

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 March 31, 2020

☐ 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)

________________________________________________________________________________________________________



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

401 North 31st Street
Billings,	MT	59116-0918
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (406) 255-5390

_________________________________________________________________________________________________

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



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, no 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:



March 31, 2020 – Class A common stock	42,465,637
March 31, 2020 – Class B common stock	22,086,944

Quarterly Report on Form 10-Q

	FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES
	Index
	March 31, 2020
		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	7

	Notes to Unaudited Consolidated Financial Statements	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	42

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	59

Item 4.	Controls and Procedures	59

	Part II - Other Information

Item 1.	Legal Proceedings	60

Item 1A.	Risk Factors	60

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62

Item 3.	Defaults Upon Senior Securities	62

Item 4.	Mine Safety Disclosures	62

Item 5.	Other Information	62

Item 6.	Exhibits	63

Signatures		64

Table of Contents

FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited)

	March 31, 2020		December 31, 2019
Assets
Cash and due from banks	$	256.6	$	241.5
Interest bearing deposits in banks	612.5		835.2
Federal funds sold	0.1		0.1
Total cash and cash equivalents	869.2		1,076.8
Investment securities:
Available-for-sale	3,000.3		2,960.0
Held-to-maturity, net (estimated fair values of $72.6 and $94.5 at March 31, 2020 and December 31, 2019, respectively)	70.2		92.3
Total investment securities	3,070.5		3,052.3
Loans held for investment	8,918.0		8,930.7
Mortgage loans held for sale	94.4		100.9
Total loans, net of deferred fees and costs	9,012.4		9,031.6
Less allowance for credit losses	129.1		73.0
Net loans	8,883.3		8,958.6
Goodwill	621.6		621.6
Company-owned life insurance	295.3		293.8
Premises and equipment, net of accumulated depreciation	308.5		306.0
Core deposit intangibles, net of accumulated amortization	59.2		62.1
Accrued interest receivable	46.3		46.7
Mortgage servicing rights, net of accumulated amortization and impairment reserve	27.8		30.2
Other real estate owned (“OREO”)	8.2		8.5
Other assets	221.5		187.6
Total assets	$	14,411.4	$	14,644.2
Liabilities and Stockholders’ Equity
Deposits:
Non-interest bearing	$	3,309.3	$	3,426.5
Interest bearing	8,255.8		8,237.0
Total deposits	11,565.1		11,663.5
Securities sold under repurchase agreements	614.1		697.6
Accounts payable and accrued expenses	138.5		129.6
Accrued interest payable	10.3		12.1
Deferred tax liability, net	24.4		26.7
Long-term debt	13.9		13.9
Allowance for credit losses on off-balance sheet credit exposures	2.1		—
Subordinated debentures held by subsidiary trusts	86.9		86.9
Total liabilities	12,455.3		12,630.3
Stockholders’ equity:
Nonvoting noncumulative preferred stock without par value; authorized 100,000 shares; no shares issued and outstanding as of March 31, 2020 or December 31, 2019	—		—
Common stock	1,018.7		1,049.3
Retained earnings	897.6		953.6
Accumulated other comprehensive gain, net	39.8		11.0
Total stockholders’ equity	1,956.1		2,013.9
Total liabilities and stockholders’ equity	$	14,411.4	$	14,644.2

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 March 31,
	2020			2019
Interest income:
Interest and fees on loans	$	112.0		$	111.4
Interest and dividends on investment securities:
Taxable	17.2			15.1
Exempt from federal taxes	0.5			0.5
Interest on deposits in banks	2.5			3.6
Total interest income	132.2			130.6
Interest expense:
Interest on deposits	7.3			12.1
Interest on securities sold under repurchase agreements	0.5			1.0
Interest on other debt	0.3			0.3
Interest on subordinated debentures held by subsidiary trusts	1.0			1.2
Total interest expense	9.1			14.6
Net interest income	123.1			116.0
Provision for credit losses	29.0			3.7
Net interest income after provision for credit losses	94.1			112.3
Non-interest income:
Payment services revenues	10.2			9.4
Mortgage banking revenues	13.6			4.1
Wealth management revenues	6.2			6.1
Service charges on deposit accounts	5.4			5.0
Other service charges, commissions and fees	4.7			4.3
Investment securities gains (losses), net	—			—
Other income	3.6			4.3
Total non-interest income	43.7			33.2
Non-interest expense:
Salaries and wages	39.9			35.1
Employee benefits	14.2			14.4
Outsourced technology services	7.8			7.9
Occupancy, net	7.3			7.0
Furniture and equipment	2.8			3.5
OREO expense, net of income	(0.5		)	0.1
Professional fees	2.7			3.2
FDIC insurance premiums	1.6			1.5
Mortgage servicing rights amortization	1.5			0.9
Mortgage servicing rights impairment	2.9			—
Core deposit intangibles amortization	2.9			2.3
Other expenses	17.2			14.3
Acquisition related expenses	—			2.3
Total non-interest expense	100.3			92.5
Income before income tax expense	37.5			53.0
Income tax expense	8.2			11.4
Net income	$	29.3		$	41.6

Earnings per common share (Basic)	$	0.45		$	0.69
Earnings per common share (Diluted)	$	0.45		$	0.69
Weighted average common shares outstanding (Basic)	64,790,186			60,311,171
Weighted average common shares outstanding (Diluted)	64,937,107			60,598,070

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 March 31,
	2020			2019
Net income	$	29.3		$	41.6
Other comprehensive income, before tax:
Investment securities available-for sale:
Change in net unrealized gains during period	39.2			33.6
Reclassification adjustment for securities transferred from held-to-maturity to available-for-sale	—			(6.0		)
Defined benefit post-retirement benefits plans:
Change in net actuarial loss	(0.2		)	(0.2		)
Other comprehensive income, before tax	39.0			27.4
Deferred tax expense related to other comprehensive income	(10.2		)	(7.2		)
Other comprehensive income, net of tax	28.8			20.2
Comprehensive income, net of tax	$	58.1		$	61.8

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (In millions, except share and per share data) (Unaudited)

	Three Months Ended March 31,
	Common stock			Retained earnings			Accumulated other comprehensive income (loss)		Total stockholders’ equity
Balance at December 31, 2019	$	1,049.3		$	953.6		$	11.0	$	2,013.9
Cumulative change related to the adoption of ASU 2016-13	—			(24.1		)	—		(24.1		)
Adjusted balance at January 1, 2020	1,049.3			929.5			11.0		1,989.8
Net income	—			29.3			—		29.3
Other comprehensive income, net of tax expense	—			—			28.8		28.8
Common stock transactions:
1,093,259 common shares purchased and retired	(32.6		)	—			—		(32.6		)
327,367 non-vested common shares issued	—			—			—		—
2,570 non-vested common shares forfeited or canceled	—			—			—

EX-31.1	fibk-20200331xex311.htm
EX-31.2	fibk-20200331xex312.htm
EX-32	fibk-20200331xex32.htm

FIBK 10Q Quarterly Report

First Interstate Bancsystem Earnings 2020-03-31