First Interstate BancSystem(US:FIBK)2023-11-02 16:00Financial Performance - Net income increased by $79.6 million to $196.0 million, or $1.89 per share, for the nine months ended September 30, 2023, compared to $116.4 million, or $1.13 per share, for the same period in 2022[343]. - Net income decreased by $13.0 million to $72.7 million, or $0.70 per share, during the three months ended September 30, 2023, compared to $85.7 million, or $0.80 per share, for the same period in 2022[349]. - Non-interest income increased by $19.1 million for the three months ended September 30, 2023, compared to the same period in 2022, but decreased by $19.1 million for the nine months ended September 30, 2023[370]. Interest Income and Expenses - Net interest income increased after a reduction of provision for credit losses by $28.0 million, primarily related to the non-PCD provision expense in 2022 associated with the GWB acquisition[343]. - Net interest income decreased by $53.1 million to $213.7 million for the three months ended September 30, 2023, compared to $266.8 million for the same period in 2022[348]. - The average interest rate spread decreased to 2.54% for the three months ended September 30, 2023, down from 3.59% for the same period in 2022[357]. - The net FTE interest margin ratio decreased by 64 basis points to 3.00% for the three months ended September 30, 2023, compared to 3.47% for the same period in 2022[357]. - The net FTE interest margin ratio increased by 9 basis points to 3.11% for the nine months ended September 30, 2023, compared to 3.06% for the same period in 2022[364]. Deposits and Borrowing - As of September 30, 2023, total deposits increased over the three months, with other borrowed funds decreasing by $0.5 billion to $2.1 billion[331]. - FDIC insured deposits accounted for 66.78% of total deposits as of September 30, 2023[330]. - As of October 26, 2023, the Bank had available borrowing capacity of $4.9 billion with the FHLB and $3.1 billion with the Federal Reserve Bank[332]. Non-Interest Expenses - Non-interest expenses decreased by $99.9 million, down from $115.0 million in acquisition-related expenses in 2022[343]. - Non-interest expense decreased by $12.1 million during the three months ended September 30, 2023, primarily due to a decrease in incentive compensation and acquisition expenses[378]. - Non-interest expense decreased by $99.9 million (16.9%) during the nine months ended September 30, 2023, compared to the same period in 2022, primarily due to lower incentive compensation accruals and decreased acquisition expenses related to the GWB acquisition[379]. Credit Losses - The company reported a reduction of credit losses of $0.1 million for the three months ended September 30, 2023, compared to a provision for credit losses of $8.4 million during the same period in 2022[366]. - The provision for credit losses for the nine months ended September 30, 2023, was $26.8 million, compared to $68.0 million during the same period in 2022[367]. Tax and Regulatory - The effective tax rate was 23.2% for the three months ended September 30, 2023, compared to 20.7% for the same period in 2022, and 23.4% for the nine months ended September 30, 2023, compared to 20.9% for the same period in 2022[385]. - FDIC insurance premiums increased by $0.9 million (22.0%) for the three months ended September 30, 2023, and by $5.2 million (51.0%) for the nine months ended September 30, 2023, due to a new assessment fee imposed by the FDIC[383]. Strategic Opportunities - The Company continues to evaluate bank acquisitions and other strategic opportunities on an ongoing basis[329].