Montana | 001-34653 | 81-0331430 | ||
(State or other jurisdiction of incorporation or organization) |
(Commission File No.) |
(IRS Employer Identification No.) |
FIRST INTERSTATE BANCSYSTEM, INC. |
||||
By: | /s/ LYLE R. KNIGHT | |||
Lyle R. Knight | ||||
President and Chief Executive Officer | ||||
Contact: | Marcy Mutch Investor Relations Officer First Interstate BancSystem, Inc. (406) 255-5322 investor.relations@fib.com |
NASDAQ: FIBK www.FIBK.com |
Three Months Ended | Sequential | Year | ||||||||||||||||||
March 31, | December 31, | March 31, | Quarter | Over Year | ||||||||||||||||
2011 | 2010 | 2010 | % Change | % Change | ||||||||||||||||
Net income |
$ | 9,506 | $ | 10,838 | $ | 11,130 | -12.3 | % | -14.6 | % | ||||||||||
Net income available to common shareholders |
8,662 | 9,975 | 10,286 | -13.2 | % | -15.8 | % | |||||||||||||
Diluted earnings per common share |
0.20 | 0.23 | 0.32 | -13.0 | % | -37.5 | % | |||||||||||||
Dividends per common share |
0.1125 | 0.1125 | 0.1125 | 0.0 | % | 0.0 | % | |||||||||||||
Book value per common share |
16.10 | 16.05 | 15.96 | 0.3 | % | 0.9 | % | |||||||||||||
Tangible book value per common share* |
11.63 | 11.55 | 11.43 | 0.7 | % | 1.7 | % | |||||||||||||
Net tangible book value per common share* |
13.04 | 12.96 | 12.84 | 0.6 | % | 1.6 | % | |||||||||||||
Return on average common equity |
5.11 | % | 5.68 | % | 7.86 | % | ||||||||||||||
Return on average assets |
0.52 | % | 0.58 | % | 0.64 | % | ||||||||||||||
Weighted average common shares outstanding |
42,689,390 | 42,641,145 | 31,585,072 | |||||||||||||||||
Weighted average common shares issuable upon
exercise of stock options & non-vested stock awards |
170,591 | 178,650 | 269,752 |
* | See Non-GAAP Financial Measures included herein for a discussion regarding tangible and net tangible book value per common share. |
1
Three Months Ended | Sequential | Year | ||||||||||||||||||
March 31, | December 31, | March 31, | Quarter | Over Year | ||||||||||||||||
2011 | 2010 | 2010 | % Change | % Change | ||||||||||||||||
Interest income |
$ | 73,843 | $ | 76,215 | $ | 79,499 | -3.1 | % | -7.1 | % | ||||||||||
Interest expense |
12,045 | 13,365 | 17,830 | -9.9 | % | -32.4 | % | |||||||||||||
Net interest income |
61,798 | 62,850 | 61,669 | -1.7 | % | 0.2 | % | |||||||||||||
Non-interest income: |
||||||||||||||||||||
Other service charges, commissions and fees |
7,380 | 7,421 | 6,872 | -0.6 | % | 7.4 | % | |||||||||||||
Service charges on deposit accounts |
4,110 | 4,327 | 4,598 | -5.0 | % | -10.6 | % | |||||||||||||
Income from the origination and sale of loans |
3,445 | 8,027 | 3,300 | -57.1 | % | 4.4 | % | |||||||||||||
Wealth management revenues |
3,295 | 3,083 | 3,014 | 6.9 | % | 9.3 | % | |||||||||||||
Investment securities gains, net |
2 | 62 | 27 | -96.8 | % | -92.6 | % | |||||||||||||
Other income |
1,927 | 2,591 | 1,697 | -25.6 | % | 13.6 | % | |||||||||||||
Total non-interest income |
20,159 | 25,511 | 19,508 | -21.0 | % | 3.3 | % | |||||||||||||
Total revenues |
$ | 81,957 | $ | 88,361 | $ | 81,177 | -7.2 | % | 1.0 | % | ||||||||||
Tax equivalent net interest margin ratio |
3.73 | % | 3.72 | % | 4.00 | % | ||||||||||||||
2
Three Months Ended | Sequential | Year | ||||||||||||||||||
March 31, | December 31, | March 31, | Quarter | Over Year | ||||||||||||||||
2011 | 2010 | 2010 | % Change | % Change | ||||||||||||||||
Non-interest expense: |
||||||||||||||||||||
Salaries, wages and employee benefits expense |
$ | 27,702 | $ | 29,216 | $ | 28,078 | -5.2 | % | -1.3 | % | ||||||||||
Occupancy, net |
4,215 | 4,207 | 4,142 | 0.2 | % | 1.8 | % | |||||||||||||
Furniture and equipment |
3,220 | 3,326 | 3,341 | -3.2 | % | -3.6 | % | |||||||||||||
FDIC insurance premiums |
2,466 | 2,584 | 2,456 | -4.6 | % | 0.4 | % | |||||||||||||
Outsourced technology services |
2,241 | 2,377 | 2,249 | -5.7 | % | -0.4 | % | |||||||||||||
Other real estate owned expense, net of income |
1,711 | 1,541 | 541 | 11.0 | % | 216.3 | % | |||||||||||||
Mortgage servicing rights amortization |
807 | 1,146 | 1,133 | -29.6 | % | -28.8 | % | |||||||||||||
Mortgage servicing rights impairment recovery |
(347 | ) | (2,999 | ) | (50 | ) | -88.4 | % | 594.0 | % | ||||||||||
Core deposit intangibles amortization |
362 | 432 | 439 | -16.2 | % | -17.5 | % | |||||||||||||
Other expenses |
10,581 | 12,993 | 10,416 | -18.6 | % | 1.6 | % | |||||||||||||
Total non-interest expense |
$ | 52,958 | $ | 54,823 | $ | 52,745 | -3.4 | % | 0.4 | % | ||||||||||
3
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Allowance for loan losses beginning of period |
$ | 120,480 | $ | 120,236 | $ | 103,030 | ||||||
Charge-offs |
(12,339 | ) | (18,045 | ) | (9,398 | ) | ||||||
Recoveries |
1,305 | 789 | 817 | |||||||||
Provision |
15,000 | 17,500 | 11,900 | |||||||||
Allowance for loan losses end of period |
$ | 124,446 | $ | 120,480 | $ | 106,349 | ||||||
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Period end loans |
$ | 4,263,764 | $ | 4,367,909 | $ | 4,481,019 | ||||||
Average loans |
4,303,575 | 4,402,141 | 4,502,713 | |||||||||
Non-performing loans: |
||||||||||||
Nonaccrual loans |
212,394 | 195,342 | 122,341 | |||||||||
Accruing loans past due 90 days or more |
4,140 | 1,852 | 3,041 | |||||||||
Restructured loans |
33,344 | 13,490 | 7,660 | |||||||||
Total non-performing loans |
249,878 | 210,684 | 133,042 | |||||||||
Other real estate owned |
31,995 | 33,632 | 43,980 | |||||||||
Total non-performing assets |
$ | 281,873 | $ | 244,316 | $ | 177,022 | ||||||
Net charge-offs to average loans (annualized) |
1.04 | % | 1.56 | % | 0.77 | % | ||||||
Provision for loan losses to average loans (annualized) |
1.41 | % | 1.58 | % | 1.07 | % | ||||||
Allowance for loan losses to period end loans |
2.92 | % | 2.76 | % | 2.37 | % | ||||||
Allowance for loan losses to total non-performing loans |
49.80 | % | 57.19 | % | 79.94 | % | ||||||
Non-performing loans to period end loans |
5.86 | % | 4.82 | % | 2.97 | % | ||||||
Non-performing assets to period end loans
and other real estate owned |
6.56 | % | 5.55 | % | 3.91 | % | ||||||
Non-performing assets to total assets |
3.79 | % | 3.26 | % | 2.45 | % |
4
Provisions | Allowance | Loans | ||||||||||||||||||||||
for | Net | for | 30 - 89 Days | Non-Performing | Non-Performing | |||||||||||||||||||
Loan Losses | Charge-offs | Loan Losses | Past Due | Loans | Assets | |||||||||||||||||||
Q1 2009 |
$ | 9,600 | $ | 4,693 | $ | 92,223 | $ | 98,980 | $ | 103,653 | $ | 122,300 | ||||||||||||
Q2 2009 |
11,700 | 5,528 | 98,395 | 88,632 | 135,484 | 167,273 | ||||||||||||||||||
Q3 2009 |
10,500 | 7,147 | 101,748 | 91,956 | 125,083 | 156,958 | ||||||||||||||||||
Q4 2009 |
13,500 | 12,218 | 103,030 | 63,878 | 124,678 | 163,078 | ||||||||||||||||||
Q1 2010 |
11,900 | 8,581 | 106,349 | 62,675 | 133,042 | 177,022 | ||||||||||||||||||
Q2 2010 |
19,500 | 11,521 | 114,328 | 99,334 | 158,113 | 200,451 | ||||||||||||||||||
Q3 2010 |
18,000 | 12,092 | 120,236 | 47,966 | 202,008 | 237,304 | ||||||||||||||||||
Q4 2010 |
17,500 | 17,256 | 120,480 | 57,011 | 210,684 | 244,312 | ||||||||||||||||||
Q1 2011 |
15,000 | 11,034 | 124,446 | 68,021 | 249,878 | 281,873 |
Other Assets | ||||||||||||||||
Especially | ||||||||||||||||
Mentioned | Substandard | Doubtful | Total | |||||||||||||
Q1 2009 |
$ | 163,402 | $ | 231,861 | $ | 40,356 | $ | 435,619 | ||||||||
Q2 2009 |
230,833 | 242,751 | 48,326 | 521,910 | ||||||||||||
Q3 2009 |
239,320 | 271,487 | 60,725 | 571,532 | ||||||||||||
Q4 2009 |
279,294 | 271,324 | 69,603 | 620,221 | ||||||||||||
Q1 2010 |
312,441 | 311,866 | 64,113 | 688,420 | ||||||||||||
Q2 2010 |
319,130 | 337,758 | 92,249 | 749,137 | ||||||||||||
Q3 2010 |
340,075 | 340,973 | 116,003 | 797,051 | ||||||||||||
Q4 2010 |
305,925 | 303,653 | 133,353 | 742,931 | ||||||||||||
Q1 2011 |
293,899 | 299,072 | 135,862 | 728,833 |
5
Sequential | Year | |||||||||||||||||||
March 31, | December 31, | March 31, | Quarter | Over Year | ||||||||||||||||
2011 | 2010 | 2010 | % Change | % Change | ||||||||||||||||
Cash and cash equivalents |
$ | 680,321 | $ | 685,618 | $ | 674,620 | -0.8 | % | 0.8 | % | ||||||||||
Investment securities |
1,987,378 | 1,933,403 | 1,523,454 | 2.8 | % | 30.5 | % | |||||||||||||
Loans |
4,263,764 | 4,367,909 | 4,481,019 | -2.4 | % | -4.8 | % | |||||||||||||
Less allowance for loan losses |
124,446 | 120,480 | 106,349 | 3.3 | % | 17.0 | % | |||||||||||||
Net loans |
4,139,318 | 4,247,429 | 4,374,670 | -2.5 | % | -5.4 | % | |||||||||||||
Other assets |
622,109 | 634,520 | 642,896 | -2.0 | % | -3.2 | % | |||||||||||||
Total assets |
$ | 7,429,126 | $ | 7,500,970 | $ | 7,215,640 | -1.0 | % | 3.0 | % | ||||||||||
Sequential | Year | |||||||||||||||||||
March 31, | December 31, | March 31, | Quarter | Over Year | ||||||||||||||||
2011 | 2010 | 2010 | % Change | % Change | ||||||||||||||||
Real estate loans: |
||||||||||||||||||||
Commercial |
$ | 1,553,750 | $ | 1,565,665 | $ | 1,590,515 | -0.8 | % | -2.3 | % | ||||||||||
Construction: |
||||||||||||||||||||
Land acquisition & development |
319,573 | 329,720 | 383,737 | -3.1 | % | -16.7 | % | |||||||||||||
Residential |
78,572 | 99,196 | 124,552 | -20.8 | % | -36.9 | % | |||||||||||||
Commercial |
95,623 | 98,542 | 87,386 | -3.0 | % | 9.4 | % | |||||||||||||
Total construction loans |
493,768 | 527,458 | 595,675 | -6.4 | % | -17.1 | % | |||||||||||||
Residential |
561,420 | 549,604 | 537,474 | 2.1 | % | 4.5 | % | |||||||||||||
Agriculture |
181,513 | 182,794 | 193,001 | -0.7 | % | -6.0 | % | |||||||||||||
Mortgage loans originated for sale |
20,992 | 46,408 | 28,367 | -54.8 | % | -26.0 | % | |||||||||||||
Total real estate loans |
2,811,443 | 2,871,929 | 2,945,032 | -2.1 | % | -4.5 | % | |||||||||||||
Consumer: |
||||||||||||||||||||
Indirect consumer loans |
411,908 | 423,552 | 418,039 | -2.7 | % | -1.5 | % | |||||||||||||
Other consumer loans |
155,100 | 162,137 | 201,236 | -4.3 | % | -22.9 | % | |||||||||||||
Credit card loans |
58,075 | 60,891 | 55,839 | -4.6 | % | 4.0 | % | |||||||||||||
Total consumer loans |
625,083 | 646,580 | 675,114 | -3.3 | % | -7.4 | % | |||||||||||||
Commercial |
703,837 | 730,471 | 729,309 | -3.6 | % | -3.5 | % | |||||||||||||
Agricultural |
121,571 | 116,546 | 127,639 | 4.3 | % | -4.8 | % | |||||||||||||
Other loans, including overdrafts |
1,830 | 2,383 | 3,925 | -23.2 | % | -53.4 | % | |||||||||||||
Total loans |
$ | 4,263,764 | $ | 4,367,909 | $ | 4,481,019 | -2.4 | % | -4.8 | % | ||||||||||
6
Sequential | Year | |||||||||||||||||||
March 31, | December 31, | March 31, | Quarter | Over Year | ||||||||||||||||
2011 | 2010 | 2010 | % Change | % Change | ||||||||||||||||
Deposits |
$ | 5,931,184 | $ | 5,925,713 | $ | 5,788,382 | 0.1 | % | 2.5 | % | ||||||||||
Securities sold under repurchase agreements |
536,955 | 620,154 | 461,559 | -13.4 | % | 16.3 | % | |||||||||||||
Other borrowed funds |
5,522 | 4,991 | 5,845 | 10.6 | % | -5.5 | % | |||||||||||||
Long-term debt |
37,491 | 37,502 | 39,034 | 0.0 | % | -4.0 | % | |||||||||||||
Subordinated debentures held by
subsidiary trusts |
123,715 | 123,715 | 123,715 | 0.0 | % | 0.0 | % | |||||||||||||
Accrued interest payable |
12,162 | 13,178 | 18,770 | -7.7 | % | -35.2 | % | |||||||||||||
Accounts payable and accrued expenses |
40,400 | 38,915 | 45,768 | 3.8 | % | -11.7 | % | |||||||||||||
Total liabilities |
$ | 6,687,429 | $ | 6,764,168 | $ | 6,483,073 | -1.1 | % | 3.2 | % | ||||||||||
Sequential | Year | |||||||||||||||||||
March 31, | December 31, | March 31, | Quarter | Over Year | ||||||||||||||||
2011 | 2010 | 2010 | % Change | % Change | ||||||||||||||||
Non-interest bearing demand |
$ | 1,110,940 | $ | 1,063,869 | $ | 999,827 | 4.4 | % | 11.1 | % | ||||||||||
Interest bearing: |
||||||||||||||||||||
Demand |
1,259,105 | 1,218,078 | 1,098,196 | 3.4 | % | 14.7 | % | |||||||||||||
Savings |
1,742,958 | 1,718,521 | 1,439,886 | 1.4 | % | 21.0 | % | |||||||||||||
Time, $100 and over |
825,585 | 908,044 | 1,005,645 | -9.1 | % | -17.9 | % | |||||||||||||
Time, other |
992,596 | 1,017,201 | 1,244,828 | -2.4 | % | -20.3 | % | |||||||||||||
Total interest bearing |
4,820,244 | 4,861,844 | 4,788,555 | -0.9 | % | 0.7 | % | |||||||||||||
Total deposits |
$ | 5,931,184 | $ | 5,925,713 | $ | 5,788,382 | 0.1 | % | 2.5 | % | ||||||||||
Sequential | Year | |||||||||||||||||||
March 31, | December 31, | March 31, | Quarter | Over Year | ||||||||||||||||
2011 | 2010 | 2010 | % Change | % Change | ||||||||||||||||
Preferred stockholders equity |
$ | 50,000 | $ | 50,000 | $ | 50,000 | 0.0 | % | 0.0 | % | ||||||||||
Common stockholders equity |
682,049 | 677,427 | 666,357 | 0.7 | % | 2.4 | % | |||||||||||||
Accumulated other comprehensive
income, net |
9,648 | 9,375 | 16,210 | 2.9 | % | -40.5 | % | |||||||||||||
Total stockholders equity |
$ | 741,697 | $ | 736,802 | $ | 732,567 | 0.7 | % | 1.2 | % | ||||||||||
Book value per common share |
$ | 16.10 | $ | 16.05 | $ | 15.96 | 0.3 | % | 0.9 | % | ||||||||||
Tangible book value per common share* |
$ | 11.63 | $ | 11.55 | $ | 11.43 | 0.7 | % | 1.7 | % | ||||||||||
Net tangible book value per common share * |
$ | 13.04 | $ | 12.96 | $ | 12.84 | 0.6 | % | 1.6 | % |
* | See Non-GAAP Financial Measures included herein for a discussion of tangible and net tangible book value per common share. |
7
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Tangible common stockholders equity to tangible assets* |
6.90 | % | 6.76 | % | 6.96 | % | ||||||
Net tangible common stockholders equity to tangible assets* |
7.74 | % | 7.59 | % | 7.82 | % | ||||||
Tier 1 common capital to total risk weighted assets |
10.40 | % | 10.12 | % | 9.67 | % | ||||||
Leverage ratio |
9.34 | %** | 9.27 | % | 9.58 | % | ||||||
Tier 1 risk-based capital |
13.85 | %** | 13.53 | % | 13.04 | % | ||||||
Total risk-based capital |
15.83 | %** | 15.50 | % | 15.00 | % |
* | See Non-GAAP Financial Measures included herein for a discussion of tangible and net tangible common stockholders equity to tangible assets. | |
** | Preliminary estimate may be subject to change. |
| credit losses; | ||
| concentrations of real estate loans; | ||
| economic and market developments, including inflation; | ||
| commercial loan risk; | ||
| adequacy of the allowance for loan losses; | ||
| impairment of goodwill; | ||
| changes in interest rates; | ||
| access to low-cost funding sources; | ||
| increases in deposit insurance premiums; | ||
| inability to grow business; |
8
| adverse economic conditions affecting Montana, Wyoming and western South Dakota; | ||
| governmental regulation and changes in regulatory, tax and accounting rules and interpretations; | ||
| sweeping changes in regulation of financial institutions due to passage of the Dodd-Frank Act; | ||
| changes in or noncompliance with governmental regulations; | ||
| effects of recent legislative and regulatory efforts to stabilize financial markets; | ||
| dependence on the Companys management team; | ||
| ability to attract and retain qualified employees; | ||
| failure of technology; | ||
| reliance on external vendors; | ||
| disruption of vital infrastructure and other business interruptions; | ||
| illiquidity in the credit markets; | ||
| inability to meet liquidity requirements; | ||
| lack of acquisition candidates; | ||
| failure to manage growth; | ||
| competition; | ||
| inability to manage risks in turbulent and dynamic market conditions; | ||
| ineffective internal operational controls; | ||
| environmental remediation and other costs; | ||
| failure to effectively implement technology-driven products and services; | ||
| litigation pertaining to fiduciary responsibilities; | ||
| capital required to support the Companys bank subsidiary; | ||
| soundness of other financial institutions; | ||
| impact of Basel III capital standards and forthcoming new capital rules proposed for U.S. banks; | ||
| inability of our bank subsidiary to pay dividends; | ||
| change in dividend policy; | ||
| lack of public market for our Class A common stock; | ||
| volatility of Class A common stock; | ||
| voting control of Class B stockholders; | ||
| decline in market price of Class A common stock; | ||
| dilution as a result of future equity issuances; | ||
| uninsured nature of any investment in Class A common stock; | ||
| anti-takeover provisions; | ||
| controlled company status; and | ||
| subordination of common stock to Company debt. |
9
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Assets |
||||||||||||
Cash and due from banks |
$ | 120,814 | $ | 107,035 | $ | 142,775 | ||||||
Federal funds sold |
3,108 | 2,114 | 5,354 | |||||||||
Interest bearing deposits in banks |
556,399 | 576,469 | 526,491 | |||||||||
Total cash and cash equivalents |
680,321 | 685,618 | 674,620 | |||||||||
Investment securities: |
||||||||||||
Available-for-sale |
1,841,281 | 1,786,335 | 1,393,664 | |||||||||
Held-to-maturity (estimated fair values of $147,401, $146,508 and
$131,613 as
of March 31, 2011, December 31, 2010 and March 31, 2010, respectively) |
146,097 | 147,068 | 129,790 | |||||||||
Total investment securities |
1,987,378 | 1,933,403 | 1,523,454 | |||||||||
Loans |
4,263,764 | 4,367,909 | 4,481,019 | |||||||||
Less allowance for loan losses |
124,446 | 120,480 | 106,349 | |||||||||
Net loans |
4,139,318 | 4,247,429 | 4,374,670 | |||||||||
Premises and equipment, net of accumulated depreciation |
185,702 | 188,138 | 196,596 | |||||||||
Goodwill |
183,673 | 183,673 | 183,673 | |||||||||
Company-owned life insurance |
73,545 | 73,056 | 71,874 | |||||||||
Accrued interest receivable |
32,380 | 33,628 | 36,480 | |||||||||
Other real estate owned, net of write-downs |
31,995 | 33,632 | 43,980 | |||||||||
Deferred tax asset |
19,112 | 18,472 | | |||||||||
Mortgage servicing rights, net of accumulated amortization and
impairment reserve |
13,284 | 13,191 | 16,836 | |||||||||
Core deposit intangibles, net of accumulated amortization |
8,441 | 8,803 | 10,112 | |||||||||
Other assets |
73,977 | 81,927 | 83,345 | |||||||||
Total assets |
$ | 7,429,126 | $ | 7,500,970 | $ | 7,215,640 | ||||||
Liabilities and Stockholders Equity |
||||||||||||
Deposits: |
||||||||||||
Non-interest bearing |
$ | 1,110,940 | $ | 1,063,869 | $ | 999,827 | ||||||
Interest bearing |
4,820,244 | 4,861,844 | 4,788,555 | |||||||||
Total deposits |
5,931,184 | 5,925,713 | 5,788,382 | |||||||||
Securities sold under repurchase agreements |
536,955 | 620,154 | 461,559 | |||||||||
Accounts payable and accrued expenses |
40,400 | 38,915 | 45,768 | |||||||||
Accrued interest payable |
12,162 | 13,178 | 18,770 | |||||||||
Other borrowed funds |
5,522 | 4,991 | 5,845 | |||||||||
Long-term debt |
37,491 | 37,502 | 39,034 | |||||||||
Subordinated debentures held by subsidiary trusts |
123,715 | 123,715 | 123,715 | |||||||||
Total liabilities |
6,687,429 | 6,764,168 | 6,483,073 | |||||||||
Stockholders equity: |
||||||||||||
Preferred stock |
50,000 | 50,000 | 50,000 | |||||||||
Common stock |
264,932 | 264,174 | 262,366 | |||||||||
Retained earnings |
417,117 | 413,253 | 403,991 | |||||||||
Accumulated other comprehensive income, net |
9,648 | 9,375 | 16,210 | |||||||||
Total stockholders equity |
741,697 | 736,802 | 732,567 | |||||||||
Total liabilities and stockholders equity |
$ | 7,429,126 | $ | 7,500,970 | $ | 7,215,640 | ||||||
10
Three Months ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Interest income: |
||||||||||||
Interest and fees on loans |
$ | 62,391 | $ | 65,044 | $ | 66,894 | ||||||
Interest and dividends on investment securities: |
||||||||||||
Taxable |
9,911 | 9,665 | 11,202 | |||||||||
Exempt from federal taxes |
1,171 | 1,145 | 1,166 | |||||||||
Interest on deposits in banks |
367 | 360 | 224 | |||||||||
Interest on federal funds sold |
3 | 1 | 13 | |||||||||
Total interest income |
73,843 | 76,215 | 79,499 | |||||||||
Interest expense: |
||||||||||||
Interest on deposits |
9,871 | 11,202 | 15,278 | |||||||||
Interest on securities sold under repurchase agreements |
237 | 247 | 194 | |||||||||
Interest on other borrowed funds |
| | 1 | |||||||||
Interest on long-term debt |
489 | 493 | 919 | |||||||||
Interest on subordinated debentures held by subsidiary trusts |
1,448 | 1,423 | 1,438 | |||||||||
Total interest expense |
12,045 | 13,365 | 17,830 | |||||||||
Net interest income |
61,798 | 62,850 | 61,669 | |||||||||
Provision for loan losses |
15,000 | 17,500 | 11,900 | |||||||||
Net interest income after provision for loan losses |
46,798 | 45,350 | 49,769 | |||||||||
Non-interest income: |
||||||||||||
Other service charges, commissions and fees |
7,380 | 7,421 | 6,872 | |||||||||
Service charges on deposit accounts |
4,110 | 4,327 | 4,598 | |||||||||
Income from the origination and sale of loans |
3,445 | 8,027 | 3,300 | |||||||||
Wealth management revenues |
3,295 | 3,083 | 3,014 | |||||||||
Investment securities gains, net |
2 | 62 | 27 | |||||||||
Other income |
1,927 | 2,591 | 1,697 | |||||||||
Total non-interest income |
20,159 | 25,511 | 19,508 | |||||||||
Non-interest expense: |
||||||||||||
Salaries, wages and employee benefits |
27,702 | 29,216 | 28,078 | |||||||||
Occupancy, net |
4,215 | 4,207 | 4,142 | |||||||||
Furniture and equipment |
3,220 | 3,326 | 3,341 | |||||||||
FDIC insurance premiums |
2,466 | 2,584 | 2,456 | |||||||||
Outsourced technology services |
2,241 | 2,377 | 2,249 | |||||||||
Other real estate owned expense, net of income |
1,711 | 1,541 | 541 | |||||||||
Mortgage servicing rights amortization |
807 | 1,146 | 1,133 | |||||||||
Mortgage servicing rights impairment recovery |
(347 | ) | (2,999 | ) | (50 | ) | ||||||
Core deposit intangibles amortization |
362 | 432 | 439 | |||||||||
Other expenses |
10,581 | 12,993 | 10,416 | |||||||||
Total non-interest expense |
52,958 | 54,823 | 52,745 | |||||||||
Income before income tax expense |
13,999 | 16,038 | 16,532 | |||||||||
Income tax expense |
4,493 | 5,200 | 5,402 | |||||||||
Net income |
9,506 | 10,838 | 11,130 | |||||||||
Preferred stock dividends |
844 | 863 | 844 | |||||||||
Net income available to common shareholders |
$ | 8,662 | $ | 9,975 | $ | 10,286 | ||||||
Basic earnings per common share |
$ | 0.20 | $ | 0.23 | $ | 0.33 | ||||||
Diluted earnings per common share |
$ | 0.20 | $ | 0.23 | $ | 0.32 | ||||||
11
For the three months ended | ||||||||||||||||||||||||||||||||||||
March 31, 2011 | December 31, 2010 | March 31, 2010 | ||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
Interest earning assets: |
||||||||||||||||||||||||||||||||||||
Loans (1)(2) |
$ | 4,303,575 | $ | 62,836 | 5.92 | % | $ | 4,402,141 | $ | 65,482 | 5.90 | % | $ | 4,502,713 | $ | 67,360 | 6.07 | % | ||||||||||||||||||
Investment securities (2) |
1,948,422 | 11,758 | 2.45 | 1,849,445 | 11,471 | 2.46 | 1,492,276 | 13,042 | 3.54 | |||||||||||||||||||||||||||
Interest bearing deposits in banks |
587,804 | 367 | 0.25 | 562,277 | 360 | 0.25 | 354,096 | 224 | 0.26 | |||||||||||||||||||||||||||
Federal funds sold |
2,242 | 3 | 0.54 | 1,208 | 1 | 0.33 | 16,851 | 13 | 0.31 | |||||||||||||||||||||||||||
Total interest earnings assets |
6,842,043 | 74,964 | 4.44 | 6,815,071 | 77,314 | 4.50 | 6,365,936 | 80,639 | 5.14 | |||||||||||||||||||||||||||
Non-earning assets |
622,539 | 636,062 | 687,663 | |||||||||||||||||||||||||||||||||
Total assets |
$ | 7,464,582 | $ | 7,451,133 | $ | 7,053,599 | ||||||||||||||||||||||||||||||
Interest bearing liabilities: |
||||||||||||||||||||||||||||||||||||
Demand deposits |
$ | 1,249,283 | $ | 834 | 0.27 | $ | 1,183,446 | $ | 878 | 0.29 | $ | 1,112,950 | $ | 839 | 0.31 | |||||||||||||||||||||
Savings deposits |
1,744,747 | 2,000 | 0.46 | 1,677,125 | 2,092 | 0.49 | 1,421,981 | 2,316 | 0.66 | |||||||||||||||||||||||||||
Time deposits |
1,874,515 | 7,037 | 1.52 | 1,992,179 | 8,232 | 1.64 | 2,258,579 | 12,123 | 2.18 | |||||||||||||||||||||||||||
Repurchase agreements |
569,881 | 237 | 0.17 | 535,543 | 247 | 0.18 | 454,687 | 194 | 0.17 | |||||||||||||||||||||||||||
Other borrowed funds |
5,695 | | | 5,833 | | | 6,469 | 1 | 0.06 | |||||||||||||||||||||||||||
Long-term debt |
37,496 | 489 | 5.29 | 37,506 | 493 | 5.21 | 71,285 | 919 | 5.23 | |||||||||||||||||||||||||||
Subordinated debentures held by
by subsidiary trusts |
123,715 | 1,448 | 4.75 | 123,715 | 1,423 | 4.56 | 123,715 | 1,438 | 4.71 | |||||||||||||||||||||||||||
Total interest bearing liabilities |
5,605,332 | 12,045 | 0.87 | 5,555,347 | 13,365 | 0.95 | 5,449,666 | 17,830 | 1.33 | |||||||||||||||||||||||||||
Non-interest bearing deposits |
1,070,744 | 1,095,947 | 959,369 | |||||||||||||||||||||||||||||||||
Other non-interest bearing liabilities |
51,013 | 53,094 | 63,528 | |||||||||||||||||||||||||||||||||
Stockholders equity |
737,493 | 746,745 | 581,036 | |||||||||||||||||||||||||||||||||
Total liabilities and
stockholders equity |
$ | 7,464,582 | $ | 7,451,133 | $ | 7,053,599 | ||||||||||||||||||||||||||||||
Net FTE interest income |
$ | 62,919 | $ | 63,949 | $ | 62,809 | ||||||||||||||||||||||||||||||
Less FTE adjustments (2) |
(1,121 | ) | (1,099 | ) | (1,140 | ) | ||||||||||||||||||||||||||||||
Net interest income from consolidated statements of income |
$ | 61,798 | $ | 62,850 | $ | 61,669 | ||||||||||||||||||||||||||||||
Interest rate spread |
3.57 | % | 3.55 | % | 3.81 | % | ||||||||||||||||||||||||||||||
Net FTE interest margin (3) |
3.73 | % | 3.72 | % | 4.00 | % | ||||||||||||||||||||||||||||||
(1) | Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees net of deferred loan costs, which is not material. | |
(2) | Interest income and average rates for tax exempt loans and securities are presented on a FTE basis. | |
(3) | Net FTE interest margin during the period equals the difference between interest income on interest earning assets and the interest expense on interest bearing liabilities, divided by average interest earning assets for the period. |
12
13
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Total stockholders equity (GAAP) |
$ | 741,697 | $ | 736,802 | $ | 732,567 | ||||||
Less goodwill and other intangible assets (excluding
mortgage servicing rights) |
192,155 | 192,518 | 193,832 | |||||||||
Less preferred stock |
50,000 | 50,000 | 50,000 | |||||||||
Tangible common stockholders equity (Non-GAAP) |
$ | 499,542 | $ | 494,284 | $ | 488,735 | ||||||
Add deferred tax liability for deductible goodwill |
60,499 | 60,499 | 60,499 | |||||||||
Net tangible common stockholders equity (Non-GAAP) |
$ | 560,041 | $ | 554,783 | $ | 549,234 | ||||||
Common shares outstanding |
42,961,253 | 42,800,694 | 42,776,940 | |||||||||
Book value per common share |
$ | 16.10 | $ | 16.05 | $ | 15.96 | ||||||
Tangible book value per common share |
$ | 11.63 | $ | 11.55 | $ | 11.43 | ||||||
Net tangible book value per common share |
$ | 13.04 | $ | 12.96 | $ | 12.84 | ||||||
Total assets (GAAP) |
$ | 7,429,126 | $ | 7,500,970 | $ | 7,215,640 | ||||||
Less goodwill and other intangible assets (excluding
mortgage servicing rights) |
192,155 | 192,518 | 193,832 | |||||||||
Tangible assets (Non-GAAP) |
$ | 7,236,971 | $ | 7,308,452 | $ | 7,021,808 | ||||||
Tangible common stockholders equity to tangible assets (Non-GAAP) |
6.90 | % | 6.76 | % | 6.96 | % | ||||||
Net tangible common stockholders equity to tangible assets (Non-GAAP) |
7.74 | % | 7.59 | % | 7.82 | % |
First Interstate BancSystem, Inc. P.O. Box 30918 Billings, Montana 59116 (406) 255-5390 www.FIBK.com |
14
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