The following is a summary of the First Interstate BancSystem, Inc. (FIBK) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Reported Q2 net income of $60 million, with earnings per share of $0.58.

• Net interest income increased to $201.7 million, reflecting modest gains in interest-earning asset yields and a decrease in funding costs.

• Net interest margin expanded by 7 basis points to 3%, anticipated to increase similarly in the upcoming quarters.

• Noninterest income saw a slight increase to $42.6 million, reflecting early successes in treasury solutions despite challenges in the mortgage sector.

• Controlled expense management led to a reduction in non-interest expenses to $156.9 million.

Business Progress:

• Improvements in treasury services contributing to fee income gains.

• Strengthened risk management with new hires in key positions.

• Consistent focus on expense management, with strategic internal investments ongoing.

• Anticipate loan portfolio stability with selective growth in commercial & industrial sectors.

Opportunities:

• Expected growth in net interest margin suggests a solid future revenue outlook.

• Enhancements in treasury services bolstering fee income, indicative of strong performance and client relationships in future.

Risks:

• The inclusion of a large, unusual customer deposit may affect the predictability of deposit volume and associated net interest income, particularly highlighted in their seasonality and third-quarter expectations.

More details: First Interstate BancSystem IR

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