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Dec 31, 2021
First Interstate Q4 2021 Earnings Report
Reported financial results for the fourth quarter, showing increased net income and improved asset quality.
Key Takeaways
First Interstate BancSystem, Inc. reported a net income of $51.1 million, or $0.83 per share, for the fourth quarter of 2021, compared to $46.9 million, or $0.76 per share, for the fourth quarter of 2020. The results reflect healthy economic conditions and strong deposit inflows, but were impacted by acquisition costs related to the pending acquisition of Great Western Bancorp, Inc.
Net income increased to $51.1 million, or $0.83 per share, compared to $46.9 million, or $0.76 per share, in Q4 2020.
Total deposits increased by $262.3 million, or 1.6%, to $16,269.6 million as of December 31, 2021.
Criticized loans decreased by $34.5 million, or 13.7%, to $216.7 million as of December 31, 2021.
Non-performing assets decreased by $7.7 million, or 20.6%, to $29.7 million as of December 31, 2021.
Forward Guidance
First Interstate BancSystem anticipates creating additional shareholder value through organic and acquisitive growth, focusing on integrating Great Western's operations, realizing merger synergies, generating organic balance sheet growth, and capitalizing on its asset-sensitive balance sheet as interest rates increase.
Positive Outlook
- Efficiently integrating Great Western’s operations.
- Realizing the synergies from the merger with Great Western.
- Generating continued organic balance sheet growth through increased exposure to faster-growing markets.
- Capitalizing on our asset sensitive balance sheet to drive growth in net interest income.
- Expansion in our net interest margin as interest rates increase.
Challenges Ahead
- Potential difficulties in combining the operations of acquired entities or assets with our own operations.
- Unexpected factors or events that could make the Transaction more expensive to complete than anticipated.
- Reputational risk and potential adverse reactions of FIBK’s or Great Western’s customers, employees or other business partners, including those resulting from the announcement or completion of the Transaction.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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