First Interstate BancSystem(US:FIBK)2025-05-07 18:47Financial Position - As of March 31, 2025, the company had consolidated assets of $28.3 billion, deposits of $22.7 billion, loans held for investment of $17.2 billion, and total stockholders' equity of $3.4 billion[113]. - As of March 31, 2025, FDIC insured deposits were 65.7% of total deposits[122]. - The estimated amount of deposits in excess of the FDIC insurance limit was $7.8 billion, or 34.3% of total deposits as of March 31, 2025[184]. - Stockholders' equity increased by $57.3 million, or 1.7%, to $3,361.3 million as of March 31, 2025, from $3,304.0 million as of December 31, 2024[186]. - Total assets decreased by $857.6 million, or 2.9%, to $28,279.8 million as of March 31, 2025, primarily due to decreases in investment securities and loans[155]. - Total liabilities decreased by $914.9 million, or 3.5%, to $24,918.5 million as of March 31, 2025, primarily due to decreases in other borrowed funds[180]. Income and Expenses - Net income decreased by $8.2 million to $50.2 million, or $0.49 per diluted share, for the three months ended March 31, 2025, compared to $58.4 million, or $0.57 per diluted share, for the same period in 2024[134]. - Net interest income increased by $4.9 million to $205.0 million for the three months ended March 31, 2025, compared to $200.1 million for the same period in 2024[144]. - Total noninterest income for the three months ended March 31, 2025, was $42.0 million, a slight decrease of 0.2% from $42.1 million in 2024[148]. - Noninterest expense increased by $0.4 million to $160.6 million for the three months ended March 31, 2025, driven primarily by higher salaries and wages[149]. Loans and Credit Quality - Indirect loans represented approximately 3.9% of loan balances and 76.7% of the consumer loan portfolio as of March 31, 2025[119]. - Loans held for investment decreased by $467.6 million, or 2.6%, to $17,377.3 million as of March 31, 2025, compared to December 31, 2024[161]. - Non-accrual loans increased by $53.6 million, or 38.8%, to $191.9 million as of March 31, 2025, primarily due to increases in commercial real estate and agricultural loans[163]. - The Company recorded a provision for credit losses of $20.0 million for the three months ended March 31, 2025, compared to $5.3 million in the same period in 2024, reflecting a significant increase[146]. - Net charge-offs for the first quarter of 2025 were $9.0 million, representing an annualized 0.21% of average loans outstanding, up from $8.4 million or 0.18% in the same period in 2024[146]. - The total allowance for credit losses was $221.2 million as of March 31, 2025, compared to $210.2 million as of December 31, 2024[179]. - The allowance for credit losses increased to $215.3 million, or 1.24% of loans held for investment, compared to $204.1 million, or 1.14% as of December 31, 2024[176]. - The allowance for credit losses to non-performing loans ratio was 110.47% as of March 31, 2025, down from 144.44% in the same period in 2024[166]. Interest Rates and Margins - The company's quarterly yield on interest-earning assets decreased to 4.75% as of March 31, 2025, from 4.86% as of December 31, 2024[124]. - The company's cost of funds decreased to 1.59% during the three months ended March 31, 2025, from 1.72% during the three months ended December 31, 2024[125]. - The net interest margin increased to 3.19% during the three months ended March 31, 2025, from 3.18% during the three months ended December 31, 2024[125]. - The net interest margin ratio increased by 28 basis points to 3.19% for the three months ended March 31, 2025, compared to 2.91% for the same period in 2024[140]. - The cost of funds, including noninterest bearing demand deposits, was 1.59% for the three months ended March 31, 2025[144]. - The net interest income simulation model projects a decrease of 3.18% in net interest income with a +200 basis points change in interest rates[204]. Liquidity and Borrowing - The company had available borrowing capacity of $4.2 billion with the Federal Home Loan Bank and $2.6 billion with the Federal Reserve Bank as of April 30, 2025[122]. - Total available liquidity increased to $7.8 billion as of March 31, 2025, compared to $7.1 billion as of December 31, 2024[194]. - The Company continuously monitors its liquidity position and is not aware of any events likely to have a material adverse effect on its liquidity or capital resources[193]. - The Company had $960.0 million of FHLB borrowings due in less than one year and available borrowing capacity of $4,958.7 million with the FHLB as of March 31, 2025[190]. Market Conditions and Outlook - The company expects continued volatility in economic markets, which may include recessionary signs impacting deposits and credit quality[126].