First Interstate Bancsystem Reports Decreased Assets and Net Income for Q3 2024

As of September 30, 2024, First Interstate Bancsystem, Inc. reported total assets of $29,595.5 million, a decrease from $30,671.2 million at the end of 2023. This decline was primarily attributed to reductions in investment securities and loans held for investment. Total cash and cash equivalents increased to $698.6 million, up from $578.0 million, while total investment securities decreased to $8,275.6 million from $9,049.4 million. Net loans held for investment also saw a decline, falling to $17,801.7 million from $18,051.9 million.

Total deposits decreased to $22,864.1 million, down from $23,323.1 million, with a notable withdrawal of $185.0 million in high-cost government entity deposits during the first quarter of 2024. Total liabilities decreased to $26,229.7 million from $27,443.7 million, reflecting reductions in deposits and other borrowed funds. Stockholders’ equity rose to $3,365.8 million, an increase from $3,227.5 million, driven by higher retained earnings, which increased to $1,163.3 million from $1,135.1 million.

For the three months ended September 30, 2024, First Interstate reported net income of $55.5 million, a decrease from $72.7 million in the same period of 2023. The nine-month net income also declined to $173.9 million from $196.0 million year-over-year. The decrease in net income was primarily due to a higher provision for credit losses and increased interest expenses on interest-bearing liabilities, which negatively impacted net interest income, reported at $205.5 million for the quarter, down from $213.7 million in 2023.

Non-interest income increased to $46.4 million for the three months ended September 30, 2024, compared to $42.0 million in the prior year, aided by a $2.6 million gain from the sale of a branch. Total non-interest expenses decreased to $159.4 million from $161.1 million, driven by lower professional fees and other expenses.

The provision for credit losses for the third quarter was $19.8 million, with net charge-offs significantly increasing to $27.4 million from $1.1 million in the same quarter of 2023. The allowance for credit losses remained stable at $225.4 million, representing 1.25% of loans held for investment.

In terms of strategic developments, the company continues to explore bank acquisitions and has maintained a diversified deposit base across various industries. The liquidity position remains strong, with total available liquidity reported at $6.5 billion as of September 30, 2024. The company declared a quarterly dividend of $0.47 per share, payable on November 14, 2024.