First Interstate Q1 2020 Earnings Report

Reported net income of $29.3 million, with mortgage banking revenues up by 67.9% compared to the previous quarter and implemented relief programs for clients impacted by COVID-19.

Key Takeaways

First Interstate BancSystem reported a net income of $29.3 million for the first quarter of 2020, a decrease compared to both the previous quarter and the same quarter of the previous year. Mortgage banking revenues saw a significant increase, but the company also recorded a provision for credit losses of $29.0 million due to the adoption of CECL and the economic impact of COVID-19.

Net income was $29.3 million, or $0.45 per share, compared to $41.6 million, or $0.69 per share, for the first quarter of 2019.

Mortgage banking revenues increased 67.9% to $13.6 million compared to the previous quarter, and 231.7% compared to the first quarter of 2019.

Net interest margin ratio decreased to 3.90%, a four-basis point decrease from the prior quarter.

The company adopted the CECL accounting standard on January 1, 2020, resulting in an initial reserve increase of $32.3 million.