First Interstate BancSystem, Inc. Reports First Quarter Earnings
First Interstate BancSystem, Inc. (NASDAQ: FIBK) today reported financial results for the first quarter of 2019. For the quarter, the Company reported net income of $41.6 million, or $0.69 per share, which compares to net income of $40.4 million, or $0.67 per share, for the fourth quarter of 2018, and $36.7 million, or $0.65 per share, for the first quarter of 2018.
First quarter 2019 earnings included acquisition costs related to the acquisitions of Northwest Bancorporation, Inc. (“Northwest”), the parent company of Inland Northwest Bank (“INB”), Idaho Independent Bank (“IIBK”), and Community First Bank (“CMYF”). Fourth quarter 2018 earnings included acquisition costs related to the acquisition of INB and the first quarter of 2018 earnings included the acquisition costs related to the acquisition of Cascade Bancorp (“CACB”) and its wholly-owned subsidiary, Bank of the Cascades (“BOTC”). The aforementioned acquisitions negatively impacted earnings by $0.03, $0.09, and $0.03 per common share for the first quarter of 2019, the fourth quarter of 2018, and the first quarter of 2018, respectively.
- Net income of $41.6 million during the first quarter of 2019, an increase of $4.9 million, or 13.4%, from the same period in the prior year of $36.7 million.
- Total deposits increased $134.0 million during the first quarter of 2019, or 5.3% annualized growth.
- Net interest margin ratio, on a fully taxable equivalent basis, increased to 4.04% for the first quarter of 2019, a 5 basis point increase from the prior quarter and a 29 basis point increase from the same period in the prior year.
- Tangible book value per common share of $18.21 as of March 31, 2019, compared to $17.52 as of December 31, 2018 and $16.07 as of March 31, 2018.
- Asset quality remained relatively unchanged in the first quarter of 2019. Non-performing assets as a percentage of total assets of 0.54% compared to 0.55% during the fourth quarter of 2018 and 0.63% during the first quarter of 2018.
- Successfully closed the acquisitions of Idaho Independent Bank and Community First Bank on April 8, 2019. With these acquisitions we are the 6th largest bank in Idaho by total assets.
“We are pleased with our performance in the first quarter, which was highlighted by positive trends in net interest margin, expense management, and asset quality,” said Kevin P. Riley, President and Chief Executive Officer of First Interstate BancSystem, Inc. “Relative to our past first quarters, we had a stronger quarter of loan production, particularly in the commercial and commercial real estate areas, which reflects the positive impact of our larger presence in faster growing markets. The recent completion of our acquisitions of Idaho Independent Bank and Community 1st Bank will further improve our ability to capitalize on the robust economic growth being seen across the state of Idaho. Our loan pipeline is the largest it has ever been, and as we continue to add quality assets and maintain disciplined expense management, we expect to deliver a higher level of profitability going forward.”