Loan Charge-Offs - The company expects to recognize a material, partial charge-off of approximately $49.3 million for the quarter ended December 31, 2024, related to a single commercial and industrial loan[6]. - The charge-off amount of the C&I Loan exceeded the specific reserve, leading to a larger than expected provision for credit losses expense[9]. Loan Performance - The outstanding aggregate balance of the C&I Loan was approximately $62.8 million as of December 31, 2024[6]. - The company anticipates non-performing loans to decline during the fourth quarter of 2024, following the successful resolution of a previously disclosed non-performing agricultural loan with a balance of approximately $22.2 million[9]. Loan Reserves and Exposure - The specific reserve held for the C&I Loan was $26.5 million as of September 30, 2024[6]. - The company's remaining exposure related to the C&I Loan is estimated at $13.5 million based on the terms of the asset purchase agreement[8]. Legal and Asset Management - A receiver was appointed by a court on January 6, 2025, to oversee the borrower's assets[7]. - The borrower entered into an asset purchase agreement with a third-party buyer, with closing expected in January 2025[7]. - The company does not expect any material future cash expenditures in connection with the enforcement of its rights under the loan documents[8]. Forward-Looking Statements - The company has provided cautionary statements regarding forward-looking statements, highlighting risks and uncertainties that may affect future performance[10].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for First Interstate BancSystem (FIBK) due to lower revenues, with a consensus EPS estimate of $0.49, reflecting a -26.9% change from the previous year [1][3]. Earnings Expectations - Revenues for the upcoming quarter are projected to be $247.2 million, which is a 2% decrease from the same quarter last year [3]. - The stock price may increase if actual earnings exceed expectations, while a miss could lead to a decline [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for FIBK is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -12.25%, suggesting a bearish sentiment among analysts [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but it is more reliable for positive readings [7]. - A positive Earnings ESP combined with a strong Zacks Rank increases the likelihood of an earnings beat, but FIBK's current combination makes it challenging to predict a beat [8][11]. Historical Performance - In the last reported quarter, FIBK was expected to earn $0.60 per share but only achieved $0.54, resulting in a -10% surprise [12]. - Over the past four quarters, FIBK has beaten consensus EPS estimates three times [13]. Industry Comparison - UMB Financial, a peer in the Zacks Banks - Midwest industry, is expected to post earnings of $2.30 per share, reflecting a +0.4% year-over-year change, with revenues projected at $414.06 million, up 9.7% [17]. - UMB's consensus EPS estimate has been revised 0.4% higher, but it also has a negative Earnings ESP of -2.47%, making predictions about beating the consensus EPS challenging [18].

Company Overview - First Interstate BancSystem Inc (NASDAQ FIBK) is a bank holding company founded in 1971 and headquartered in Billings Montana [1] - The company operates through its subsidiary First Interstate Bank providing financial services including consumercommercial banking wealth management and insurance offerings [1] Business Operations - The company primarily serves the financial needs of its customers through its comprehensive range of services [1] Analyst Disclosure - The analyst has no stock option or similar derivative position in any of the mentioned companies and no plans to initiate any such positions within the next 72 hours [1] - The article expresses the analyst's own opinions and is not receiving compensation other than from Seeking Alpha [1] - The analyst has no business relationship with any company whose stock is mentioned in the article [1] Seeking Alpha Disclosure - Seeking Alpha emphasizes that past performance is no guarantee of future results and does not provide recommendations or advice on investment suitability [2] - The views or opinions expressed in the article may not reflect those of Seeking Alpha as a whole [2] - Seeking Alpha is not a licensed securities dealer broker or US investment adviser or investment bank [2] - The analysts are thirdparty authors including both professional and individual investors who may not be licensed or certified by any institute or regulatory body [2]

Group 1 - The most attractive characteristic of First Interstate BancSystem (NASDAQ: FIBK) is its high dividend yield [1] - The earnings outlook suggests that the dividend is unlikely to be cut this year, with expectations for earnings recovery next year [1]

Financial Performance - Net income decreased by $17.2 million to $55.5 million, or $0.54 per share, for the three months ended September 30, 2024, compared to $72.7 million, or $0.70 per share, for the same period in 2023[187]. - For the nine months ended September 30, 2024, net income decreased by $22.1 million to $173.9 million, or $1.69 per share, compared to $196.0 million, or $1.89 per share, for the same period in 2023[188]. - Net interest income decreased by $8.2 million for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to increased interest expenses from higher costs of interest-bearing deposits[193]. - Net interest income decreased by $63.7 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to increased interest expense from higher costs of interest-bearing deposits[197]. - Total non-interest income increased by $4.4 million for the three months ended September 30, 2024, compared to the same period in 2023, and increased by $28.6 million for the nine months ended September 30, 2024[208]. Interest Rates and Margins - The quarterly yield on interest-earning assets increased to 4.83% as of September 30, 2024, from 4.80% as of June 30, 2024, and 4.63% as of September 30, 2023[178]. - The Company's net interest margin increased to 3.01% for the three months ended September 30, 2024, from 2.97% for the three months ended June 30, 2024[179]. - The net interest margin ratio decreased by 4 basis points to 3.01% for the three months ended September 30, 2024, compared to 3.05% for the same period in 2023[195]. - The interest rate spread decreased to 2.40% for the three months ended September 30, 2024, compared to 2.72% for the same period in 2023[196]. - The net FTE interest margin ratio decreased to 2.99% for the three months ended September 30, 2024, compared to 3.18% for the same period in 2023[196]. Credit Losses and Non-Performing Assets - The provision for credit losses was $19.8 million for the three months ended September 30, 2024, compared to a reduction of $0.1 million during the same period in 2023[204]. - Net charge-offs for the three months ended September 30, 2024, were $27.4 million, or an annualized 0.60% of average loans outstanding, compared to $1.1 million, or 0.02%, during the same period in 2023[204]. - As of September 30, 2024, non-performing assets totaled $178.9 million, an increase from $174.9 million as of June 30, 2024, and significantly higher than $96.2 million as of September 30, 2023[228]. - The non-performing loans amounted to $174.5 million as of September 30, 2024, representing 100% of total non-performing loans, compared to $111.3 million as of December 31, 2023[229]. - The company expects future provisions for credit losses may be required if economic conditions decline or asset quality deteriorates[241]. Deposits and Funding - As of September 30, 2024, FDIC insured deposits accounted for 65.0% of total deposits[175]. - Total deposits decreased by $459.0 million, or 2.0%, to $22,864.1 million as of September 30, 2024, from $23,323.1 million as of December 31, 2023[245]. - The estimated amount of deposits in excess of the FDIC insurance limit at September 30, 2024, was $8.0 billion, or 35.0% of total deposits[247]. - The Bank had FHLB borrowings of $1,080.0 million with remaining tenors of one year or less as of September 30, 2024, and a remaining borrowing capacity with the FHLB of $4,885.2 million[258]. - The Bank's total available liquidity was $6.5 billion as of September 30, 2024, compared to $7.3 billion as of December 31, 2023[257]. Expenses and Equity - Non-interest expense decreased by $1.7 million during the three months ended September 30, 2024, compared to the same period in 2023, driven by lower other expenses and professional fees[209]. - Non-interest expense for the three months ended September 30, 2024, was $159.4 million, a decrease of $1.7 million or 1.1% compared to $161.1 million in 2023[210]. - Stockholders' equity increased to $3,243.8 million as of September 30, 2024, compared to $3,154.5 million in the same period of 2023[196]. - Stockholders' equity increased by $138.3 million, or 4.3%, to $3,365.8 million as of September 30, 2024, from $3,227.5 million as of December 31, 2023[250]. - Salaries and wages increased by $5.5 million or 8.4% to $70.9 million for the three months ended September 30, 2024, primarily due to $3.8 million in transition expenses related to the CEO's retirement[211]. Strategic Opportunities and Market Conditions - The Company continues to evaluate bank acquisitions and other strategic opportunities as part of its normal course of business[172]. - The Federal Reserve increased short-term interest rates by 525 basis points between March 16, 2022, and July 29, 2023, and decreased them by 50 basis points in September 2024[177]. - Inflation decreased to 2.4% as of September 2024 from a high of 9.1% in June 2022, impacting the Company's operating expenses[176]. - The company is not aware of any events that are likely to have a material adverse effect on its liquidity, capital resources, or operations[255]. - The Asset Liability Committee (ALCO) is responsible for monitoring interest rate risk and developing asset liability management strategies[261].

Financial Data and Key Metrics Changes - The company recorded net income of $55.5 million in Q3 2024, or $0.54 per share [4] - Net interest margin, excluding purchase accounting accretion, increased by 5 basis points to 2.97% [4][8] - Noninterest income rose to $46.4 million, with a 3% increase excluding a $2.6 million gain from a branch sale [10] - Noninterest expenses increased by $2.5 million, primarily due to a one-time CEO transition cost of $3.8 million [12] - Total charge-offs for the quarter were $27.4 million, with $5.3 million excluding two metro office loans [17] Business Line Data and Key Metrics Changes - Net interest income was $205.5 million, an increase of $3.8 million from the previous quarter [7] - Loan balances decreased by $207.9 million, with a notable decline in construction loans [13] - Commercial real estate loans increased by $164.8 million, reflecting a transition from construction loans [13] Market Data and Key Metrics Changes - Deposits ended the quarter essentially flat, but increased approximately 1% when excluding a large temporary deposit [6][15] - The company anticipates continued margin expansion and improved profitability into 2025 [6] Company Strategy and Development Direction - The company is focused on expense discipline and anticipates an earnings inflection [6] - Management is addressing challenges in the metro office portfolio proactively, with expectations of no further material losses [16][34] - The company aims to maintain a strong relationship with customers, focusing on full relationships rather than transactional loans [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current economic environment, with expectations of margin expansion and improved profitability [6][9] - There is a belief that pent-up demand for loans exists, but timing for this demand is uncertain [48] Other Important Information - The common equity Tier 1 capital ratio increased by 30 basis points to 11.83% [18] - A dividend of $0.47 per share was declared, yielding 6.3% for Q3 2024 [18] Q&A Session Summary Question: Specific reserves for C&I relationship expected to resolve by year-end - Management indicated that reserves are adequate based on realizable value [21][22] Question: Reserves previously set aside for metro office credits - No specific reserves were set aside, but loan characteristics were considered in the overall allowance [22] Question: Expectations for ag credit resolution and charge-off guidance - The ag loan was around $20 million, and management is comfortable with a 20 to 25 basis point charge-off guidance for Q4 [24] Question: Dynamics of swap termination in Q3 - The company terminated $550 million of swaps to reduce exposure going into 2025 [26] Question: Loan demand outlook for 2025 - Management noted uncertainty in timing for increased loan demand but indicated readiness to respond [48]

3Q 2024 Investor Presentation Exhibit 99.2 October 24, 2024 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 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. Any statements about our plans, objectives, expectations, strategies, belief ...

Core Viewpoint - First Interstate BancSystem (FIBK) reported a decline in revenue and earnings for the quarter ended September 2024, with a slight revenue surprise over estimates but a notable EPS miss [1]. Financial Performance - Revenue for the quarter was $251.9 million, down 1.5% year-over-year, and EPS was $0.54 compared to $0.70 in the same quarter last year [1]. - The reported revenue exceeded the Zacks Consensus Estimate of $249.9 million by +0.80%, while the EPS fell short of the consensus estimate of $0.60 by -10.00% [1]. Key Metrics - Net FTE interest margin (non-GAAP) was 3%, matching the average estimate from two analysts [1]. - Efficiency Ratio stood at 61.9%, slightly better than the estimated 62.6% [1]. - Mortgage banking revenues were $1.70 million, below the estimated $2.25 million [1]. - Total noninterest income reached $46.40 million, surpassing the average estimate of $43.53 million [1]. - Net interest income was reported at $205.50 million, slightly below the average estimate of $206.67 million [1]. Stock Performance - Shares of First Interstate BancSystem have increased by +7.3% over the past month, outperforming the Zacks S&P 500 composite, which saw a +1.5% change [2]. - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [2].

Core Viewpoint - First Interstate BancSystem reported quarterly earnings of $0.54 per share, missing the Zacks Consensus Estimate of $0.60 per share, and showing a decline from $0.70 per share a year ago, indicating a -10% earnings surprise [1] Group 1: Earnings Performance - The company posted revenues of $251.9 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.80%, but down from $255.7 million year-over-year [1] - Over the last four quarters, First Interstate BancSystem has surpassed consensus EPS estimates three times [1] - The current consensus EPS estimate for the upcoming quarter is $0.61 on revenues of $254.5 million, and for the current fiscal year, it is $2.34 on revenues of $990.8 million [4] Group 2: Stock Performance and Outlook - Since the beginning of the year, First Interstate BancSystem shares have increased by about 3.9%, compared to the S&P 500's gain of 21.5% [2] - The estimate revisions trend for the company is currently favorable, leading to a Zacks Rank 1 (Strong Buy), suggesting that the shares are expected to outperform the market in the near future [4] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [3] Group 3: Industry Context - The Banks - Midwest industry, to which First Interstate BancSystem belongs, is currently in the top 22% of over 250 Zacks industries, indicating a favorable industry outlook [5] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1, suggesting a positive environment for the company [5]

Exhibit 99.1 For Immediate Release First Interstate BancSystem, Inc. Reports Third Quarter Earnings Billings, MT - October 24, 2024 - First Interstate BancSystem, Inc. (NASDAQ: FIBK) (the "Company") today reported financial results for the third quarter of 2024. For the quarter, the Company reported net income of $55.5 million, or $0.54 per share, which compares to net income of $60.0 million, or $0.58 per share, for the second quarter of 2024 and net income of $72.7 million, or $0.70 per share, for the thi ...