[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited Q1 2023 financial statements show a significant turnaround to $56.3 million net income, with total assets decreasing to $31.6 billion [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $31.64 billion as of March 31, 2023, primarily due to reduced investment securities, while stockholders' equity increased to $3.16 billion Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$31,637.7** | **$32,287.8** | | Total Investment Securities | $9,425.5 | $10,397.9 | | Net Loans Held for Investment | $18,019.6 | $17,879.1 | | **Total Liabilities** | **$28,477.4** | **$29,214.0** | | Total Deposits | $24,107.0 | $25,073.6 | | Other Borrowed Funds | $2,710.0 | $2,327.0 | | **Total Stockholders' Equity** | **$3,160.3** | **$3,073.8** | [Consolidated Statements of Income (loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20%28loss%29) Q1 2023 net income was $56.3 million ($0.54 diluted EPS), a significant improvement from a prior-year loss, driven by increased net interest income and lower credit provisions Income Statement Summary (in millions, except per share data) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net Interest Income | $238.9 | $178.4 | | Provision for Credit Losses | $15.2 | $61.3 | | Total Non-interest Income | $16.4 | $48.8 | | Total Non-interest Expense | $165.8 | $207.2 | | **Net Income (Loss)** | **$56.3** | **($33.4)** | | **Diluted EPS** | **$0.54** | **($0.36)** | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Q1 2023 comprehensive income was $134.3 million, a significant improvement from prior-year loss, driven by net income and unrealized gains on investment securities Comprehensive Income (Loss) Summary (in millions) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net Income (Loss) | $56.3 | ($33.4) | | Other Comprehensive Income (Loss), net of tax | $78.0 | ($191.0) | | **Comprehensive Income (Loss), net of tax** | **$134.3** | **($224.4)** | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased to $3.16 billion by March 31, 2023, driven by net income and other comprehensive income, partially offset by dividends Changes in Stockholders' Equity - Q1 2023 (in millions) | Description | Amount | | :--- | :--- | | Balance at December 31, 2022 | $3,073.8 | | Net Income | $56.3 | | Other Comprehensive Income, net of tax | $78.0 | | Common Stock Cash Dividends Declared | ($48.3) | | Other Transactions (net) | $0.5 | | **Balance at March 31, 2023** | **$3,160.3** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash and cash equivalents increased by $210.2 million in Q1 2023, with significant inflows from investing activities offsetting financing outflows Cash Flow Summary - Q1 2023 vs Q1 2022 (in millions) | Cash Flow Category | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $57.7 | $64.9 | | Net Cash Provided by Investing Activities | $868.3 | $1,522.5 | | Net Cash Used in Financing Activities | ($715.8) | ($120.9) | | **Net Increase in Cash and Cash Equivalents** | **$210.2** | **$1,466.5** | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the GWB acquisition, portfolio management, derivatives, capital adequacy, fair value, and new accounting standard adoptions - The acquisition of Great Western Bank (GWB) was completed on **February 1, 2022**, for **$1.72 billion**, resulting in **$479.3 million of goodwill**[58](index=58&type=chunk)[82](index=82&type=chunk) - In Q1 2023, the company sold **$853.0 million** in available-for-sale securities, realizing a net loss of **$23.4 million**[76](index=76&type=chunk) - The company adopted ASU 2022-02, which eliminated accounting guidance for Troubled Debt Restructurings (TDRs) and enhanced disclosure requirements for loan modifications to borrowers experiencing financial difficulty[115](index=115&type=chunk)[274](index=274&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights strong Q1 2023 financial performance with $56.3 million net income, driven by increased net interest income and lower credit provisions, alongside active balance sheet management [Results of Operations](index=53&type=section&id=Results%20of%20Operations) Q1 2023 profitability was driven by a 33.9% increase in net interest income and lower credit provisions, despite a significant drop in non-interest income Key Performance Metrics - Q1 2023 vs Q1 2022 | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Interest Income | $238.9M | $178.4M | | Provision for Credit Losses | $15.2M | $61.3M | | Non-interest Income | $16.4M | $48.8M | | Non-interest Expense | $165.8M | $207.2M | | Net Income (Loss) | $56.3M | ($33.4M) | - The net interest margin (FTE, non-GAAP) increased by **56 basis points** to **3.36%** compared to the prior year, driven by higher asset yields[332](index=332&type=chunk) - Non-interest expense in Q1 2022 included **$65.2 million** in acquisition-related expenses for the GWB acquisition, which were absent in Q1 2023[325](index=325&type=chunk) [Financial Condition](index=58&type=section&id=Financial%20Condition) Total assets decreased to $31.6 billion due to reduced investment securities, while loans grew and non-performing assets increased to 0.31% of total assets - Total assets decreased by **$650.1 million (2.0%)** during Q1 2023, primarily due to a decrease in investment securities[343](index=343&type=chunk) - Total deposits decreased by **$966.6 million (3.9%)** during the quarter, while other borrowed funds (primarily FHLB advances) increased by **$383.0 million**[378](index=378&type=chunk)[395](index=395&type=chunk) Non-Performing Assets (in millions) | Metric | March 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Non-performing Loans | $85.3 | $65.6 | | OREO | $13.4 | $12.7 | | **Total Non-performing Assets** | **$98.7** | **$78.3** | | NPA / Total Assets | 0.31% | 0.24% | - The allowance for credit losses on loans was **1.24%** of loans held for investment, up slightly from **1.22%** at year-end 2022[389](index=389&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Market risk analysis indicates a shift to a slightly liability-sensitive position, with a 100 bps rate increase projected to decrease net interest income by 0.37% Interest Rate Sensitivity Analysis (Net Interest Income Change over 12 months) | Rate Shock Scenario | Projected NII Change | | :--- | :--- | | +100 bps Immediate Shock | -0.37% | | -100 bps Immediate Shock | +1.76% | [Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during Q1 2023 - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the period[405](index=405&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter[415](index=415&type=chunk) [Part II - Other Information](index=66&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions, but management expects no material adverse effect on financial condition or operations - The company states that the disposition of all claims and litigation is not expected to have a material adverse effect on its consolidated financial condition, results of operations, or liquidity[408](index=408&type=chunk) [Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the 2022 Annual Report on Form 10-K - No material changes in risk factors from the 2022 Annual Report on Form 10-K were reported for the period[417](index=417&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales occurred in Q1 2023; 55,080 shares were repurchased for tax withholding on vested restricted shares Share Repurchases in Q1 2023 | Month | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | January 2023 | 0 | $0.00 | | February 2023 | 18,403 | $36.99 | | March 2023 | 36,677 | $31.42 | | **Total** | **55,080** | **$33.28** | - The stock repurchases were redemptions of vested restricted shares tendered by participants in the company's equity compensation plan to cover tax withholding amounts[419](index=419&type=chunk) [Other Information](index=67&type=section&id=Item%205.%20Other%20Information) The company amended its Bylaws to enhance procedural and disclosure requirements for shareholder nominations and proposals - The company amended its bylaws to enhance procedural mechanics and disclosure requirements for shareholder nominations and proposals[410](index=410&type=chunk) [Exhibits](index=68&type=section&id=Item%206.%20Exhibits) Exhibits filed with Form 10-Q include Bylaws amendment, CEO/CFO certifications, and Interactive Data Files (XBRL) - The list of exhibits includes CEO and CFO certifications pursuant to Rule 13a-14(a) and Section 1350, as well as XBRL data files[411](index=411&type=chunk)

Debt Security Investments. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at amortized cost. Investments in debt securities that may be sold in response to or in anticipation of changes in interest rates and resulting prepayment risk, or other factors, are classified as available-for-sale and carried at fair value. The unrealized gains and losses on these securities are reported, net of applicable income ...

First Interstate BancSystem, Inc. (NASDAQ:FIBK) Q4 2022 Earnings Conference Call January 27, 2023 11:00 AM ET Company Participants Lisa Slyter-Bray - Executive Assistant Kevin Riley - Chief Executive Officer Marcy Mutch - Chief Financial Officer Michael Lugli - Chief Credit Officer Conference Call Participants Jared Shaw - Wells Fargo Chris McGratty - KBW Adam Butler - Piper Sandler Todd Milliken - RBC Wealth Management Bruce Zessar - Advisory Research Chris McGratty - KBW Andrew Terrell - Stephen Tim Coffe ...

Exhibit 99.2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and included in our periodic reports filed with the Securities and Exchange Commission, or SEC, under the Securities Exchange Act of 1934, as amended, under the caption "Risk Factors". Interested parties are urged to read in their entirety such risk factors prior to making any ...

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First Interstate BancSystem, Inc. (NASDAQ:FIBK) Q3 2022 Earnings Conference Call October 26, 2022 11:00 AM ET Company Participants Lisa Slyter-Bray - Executive Assistant Kevin Riley - Chief Executive Officer Marcy Mutch - Chief Financial Officer John Stewart - Deputy Chief Financial Officer Conference Call Participants Chris McGratty - KBW Matthew Clark - Piper Sandler Jared Shaw - Wells Fargo Jeff Rulis - D.A. Davidson Andrew Terrell - Stephens Operator Good morning. Thank you for attending today's First I ...

Exhibit 99.2 3Q 2022 Investor Presentation October 25, 2022 First Interstate BancSystem 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, expe ...

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Financial Data and Key Metrics Changes - The company reported earnings per share of $0.92, excluding acquisition-related expenses and other items, reflecting a substantial increase in profitability [5] - Net interest income increased by $59.9 million, with the reported net interest margin rising 45 basis points to 3.25% [15][16] - The adjusted efficiency ratio improved to 50.8% from 62.2% in the prior quarter, indicating enhanced operational efficiency [6] Business Line Data and Key Metrics Changes - Loan production was 30% higher than the prior period, with an annualized loan growth rate of 6.4%, excluding PPP loans [6][7] - The legacy First Interstate branch network experienced an annualized loan growth rate of 15% in the second quarter, with significant contributions from Montana, Idaho, and Eastern Washington [8] - Non-interest income increased by $1.8 million quarter-over-quarter to $51 million, driven by strong results from payment services and the addition of Great Western's Wealth Management business [20] Market Data and Key Metrics Changes - The company noted healthy economic conditions across its markets, contributing to loan growth and overall performance [6][32] - Deposits decreased by $1.2 billion, primarily due to outflows in savings and jumbo CD balances, with a decline of 1.7% in the legacy footprint [26] Company Strategy and Development Direction - The company is focused on capitalizing on increased scale following the merger, with plans to deploy excess liquidity into higher-yielding assets [10][12] - Management emphasized maintaining discipline in pricing and strategically raising deposit pricing to attract new clients [19][50] - The company aims for mid-single digit annualized loan growth in the second half of the year, supported by strong economic activity and improved asset quality [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued loan growth and margin expansion, despite potential macroeconomic challenges [32][36] - The company is well-positioned to navigate various economic environments, with a strong capital position and proactive management practices [37] Other Important Information - The company repurchased 1.7 million shares at a weighted average price of $37.38 and paid a dividend yielding 4.6% on an annualized basis [13] - A $21 million donation to the foundation related to the acquisition includes a $1 million grant campaign to support local nonprofits [39] Q&A Session Summary Question: How much of the provision reversal was related to Great Western's performance? - The provision reversal of $1.7 million reflected the credit quality of the entire portfolio, slightly offset by a negative bias due to macroeconomic factors [41][42] Question: What is the pace of resolving remaining loans from Great Western? - The pace of resolution is proceeding as expected, with no wholesale selling of loans anticipated [46][47] Question: How will the company defend deposits at current levels? - The company plans to increase deposit pricing strategically to defend its market position without significantly impacting earnings projections [48][50] Question: What are the expectations for net deposit growth in the second half? - The company anticipates deposits will remain flat for the remainder of the year, with no significant outflows expected [62] Question: What is the outlook for the efficiency ratio in the second half? - Management is hopeful for continued improvement in the efficiency ratio, aiming for a lower percentage than the current quarter [63]

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