First Interstate BancSystem (FIBK) Reports In-Line Q2 EPS

First Interstate BancSystem (NASDAQ: FIBK) reported Q2 EPS of $0.74, in-line with the analyst estimate of $0.74.

HIGHLIGHTS

• Net income of $41.7 million, a 13.6% increase from the first quarter of 2018, and a 91.3% increase from the same period in the prior year. Exclusive of acquisition costs in the first quarter of 2018 and in the second quarter of 2017, net income increased $3.4 million, or 8.9%, and $13.3 million, or 46.8%, respectively.
• Net interest margin ratio increased to 3.87% during the second quarter of 2018, a 12 basis point increase from the prior quarter and reflects a 27 basis point increase from the same period in the prior year. Excluding the impact of charged-off interest and interest accretion on acquired loans, the net interest margin ratio was 3.69%, an increase of eight basis points from the prior quarter and 26 basis points from the same period in the prior year.
• Total fee-based revenues of $35.0 million, a 11.8% increase from the first quarter of 2018 and an 11.5% increase from the same period in the prior year.
• Total loans increased $111.9 million in the second quarter of 2018, or 5.9% annualized growth. The increase was primarily driven by commercial and agricultural loans and commercial and agricultural real estate loans, partially offset by a decline in construction real estate loans.
• Loan to deposit ratio of 78.01% as of June 30, 2018, compared to 76.27% for the first quarter of 2018 and 75.41% from the same period in the prior year.
• Efficiency ratio of 58.84%, as compared to 62.32% for the first quarter of 2018 and 68.10% for the same period in the prior year.

“We continue to see positive trends across most of our key metrics, resulting in strong earnings growth and an improvement in our return on average equity to 11.61% for the second quarter,” said Kevin P. Riley, President and Chief Executive Officer of First Interstate BancSystem, Inc. “Consistent with the seasonal strength we typically experience in the second quarter, we saw improved loan growth and higher non-interest income, particularly within our payment services and mortgage banking businesses. As a result of the higher revenue, our efficiency ratio improved to 58.84% in the quarter. We are also seeing the positive benefits of our asset sensitive balance sheet, as our net interest margin continues to expand with additional increases in interest rates. We expect to see a continuation of these positive trends, resulting in a strong second half of 2018, and we believe the completion of our acquisition of Northwest Bancorporation will provide another catalyst for driving earnings growth in the years ahead.”

For earnings history and earnings-related data on First Interstate BancSystem (FIBK) click here.

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