First Interstate BancSystem(FIBK)2025-01-29 21:28Loan 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].