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Jun 30, 2023
First Interstate Q2 2023 Earnings Report
Reported solid financial results impacted by severance expenses, deposit decreases, and net interest margin decline.
Key Takeaways
First Interstate BancSystem, Inc. reported a net income of $67.0 million, or $0.65 per share, for the second quarter of 2023. The results were impacted by severance expenses and a decrease in net interest margin, but the company saw growth in June deposits and commercial real estate loans.
Net income was $67.0 million, or $0.65 per share, impacted by $1.9 million in severance expenses.
Total deposits decreased 2.2% during the quarter, but grew 1.6% in June.
Net interest margin decreased to 3.12%, a 24 basis point decrease from the previous quarter.
Loans held for investment increased $17.7 million, or an annualized 0.4%.
First Interstate
First Interstate
Forward Guidance
First Interstate is focused on community banking, client service, and strategic initiatives to drive long-term profitable growth.
Positive Outlook
- Healthy economic conditions in tourism and agriculture industries.
- Significant increases in visitors to national parks.
- Sufficient moisture levels in most parts of the footprint.
- Addition of a significant number of net new deposit accounts.
- Rolling out a new suite of consumer credit cards in August.
Challenges Ahead
- Difficult environment for banking.
- Overall total deposits decreased 2.2% for the second quarter of 2023.
- Net interest margin decreased to 3.12% for the second quarter of 2023.
- Changes in accumulated other comprehensive loss related to unrealized losses on available-for-sale securities
- Net charge-offs for the second quarter of 2023 were largely comprised of one construction real estate credit in a metro market.