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Jun 30, 2022
First Interstate Q2 2022 Earnings Report
Reported financial results for the second quarter of 2022.
Key Takeaways
First Interstate BancSystem reported a net income of $64.1 million, or $0.59 per share, for the second quarter of 2022, driven by an increase in net interest income and a $1.7 million reduction in credit losses, and the completion of the merger and core system conversion of GWB on May 23, 2022.
Completed the merger and core system conversion of GWB on May 23, 2022, which we anticipate will result in cost savings in the second half of 2022.
Net income of $64.1 million, or $0.59 per share, driven by an increase in net interest income and a $1.7 million reduction in credit losses.
Net interest margin ratio, on a fully taxable equivalent basis, increased to 3.25% for the second quarter of 2022, a 45 basis point increase from the first quarter of 2022.
Efficiency ratio of 71.4% for the second quarter of 2022 compared to 89.6% for the first quarter of 2022.
First Interstate
First Interstate
First Interstate Revenue by Segment
Revenue by Segment
Payment Services Revenue
CapyFin.comWealth Management Revenue
CapyFin.comMortgage Banking Revenue
CapyFin.comOther Service Charges Revenue
CapyFin.com Forward Guidance
First Interstate BancSystem anticipates a continuation of the positive trends in loan growth and margin expansion, with synergies from the Great Western system conversion expected to further improve profitability.
Positive Outlook
- Expect to see a continuation of the positive trends in loan growth
- Expect to see a continuation of the positive trends in margin expansion
- Synergies projected for this transaction, which should lead to further improvement in our profitability.
- Well positioned to generate profitable growth
- Well positioned to further enhance the value of our franchise in the years ahead
Challenges Ahead
- New, or changes in, governmental regulations or policies
- Tax legislative initiatives or assessments
- More stringent capital requirements, to the extent they may become applicable to us
- Changes in accounting standards
- Any failure to comply with applicable laws and regulations, including the Community Reinvestment Act and fair lending laws, the USA PATRIOT ACT, Office of Foreign Asset Control guidelines and requirements, the Bank Secrecy Act, and the related Financial Crimes Enforcement Network and Federal Financial Institutions Examination Council’s guidelines and regulations