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Jun 30, 2020
First Interstate Q2 2020 Earnings Report
Net income reported a decrease compared to the previous year, but an increase compared to the previous quarter. Mortgage banking revenues and non-interest-bearing deposits increased.
Key Takeaways
First Interstate BancSystem, Inc. reported net income of $36.7 million, or $0.58 per share, for the second quarter of 2020. This compares to net income of $29.3 million, or $0.45 per share, for the first quarter of 2020, and $37.9 million, or $0.59 per share, for the second quarter of 2019.
Mortgage banking revenues increased 30.3% compared to Q1 2020 and 57.8% compared to Q2 2019.
Non-performing assets decreased $7.2 million, or 10.1%, from Q1 2020 and decreased $9.7 million, or 13.1%, from Q2 2019.
Non-interest-bearing deposits increased $1,117.3 million, or 33.8%, compared to Q1 2020 and $1,053.7 million, or 31.2%, compared to Q2 2019.
Criticized loans decreased $33.9 million, compared to the first quarter of 2020 and $47.9 million, compared to the second quarter of 2019.
Revenue by Segment
Forward Guidance
The Company believes its overall financial performance will remain relatively consistent over the second half of the year and that they remain well positioned to manage through the continuation of the pandemic, with high levels of capital and liquidity.
Positive Outlook
- Well positioned to manage through the continuation of the pandemic.
- High levels of capital and liquidity.
- Executing well on the technology initiatives that are strengthening infrastructure.
- Improving scalability.
- Enabling to continually offer new digital banking features to our clients.
Challenges Ahead
- Low interest rate environment presents challenges for revenue growth.
- Caution on the part of commercial borrowers presents challenges for revenue growth.
- Mortgage servicing impairments of $5.5 million.
- Service charges on deposit accounts decreased $1.8 million, or 33.3%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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