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Mar 31, 2022
First Interstate Q1 2022 Earnings Report
Reported a net loss due to acquisition costs related to Great Western Bancorp, but saw positive trends in net interest margin and loan pipeline.
Key Takeaways
First Interstate BancSystem, Inc. reported a net loss of $33.4 million, or $0.36 per share, for the first quarter of 2022, which includes pre-tax acquisition costs of $65.2 million related to the acquisition of Great Western Bancorp, Inc. Excluding these costs, the company saw strong earnings driven by expansion in net interest margin and a strong loan pipeline.
Successfully completed the acquisition of Great Western on February 1, 2022, for approximately $1.7 billion.
Total assets increased $13,490.3 million, or 68.6%, to $33,162.2 million as of March 31, 2022, primarily due to assets acquired from GWB.
Net interest margin ratio increased to 2.80% for the first quarter of 2022, an 11 basis point increase from the fourth quarter of 2021.
All credit metrics for the legacy FIBK loan portfolio showed sequential improvement, and credit metrics for the acquired GWB loan portfolio showed meaningful improvement compared with expectations at deal announcement.
Revenue by Segment
Forward Guidance
The company expects the integration of Great Western to proceed smoothly and remains on track to realize the cost savings projected for the transaction during the second half of the year. They also anticipate that the resolution of credit quality issues will be less of a headwind to total loan growth than initially expected, and the loan pipeline remains strong.
Positive Outlook
- Integration of Great Western proceeding smoothly.
- On track to realize cost savings from the acquisition in the second half of the year.
- Resolution of credit quality issues expected to be less of a headwind to loan growth than initially anticipated.
- Loan pipeline remains strong.
- Anticipate continued favorable shifts in mix of earning assets and positive trends in level of profitability.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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