The following is a summary of the First Interstate BancSystem Inc. (FIBK) Q1 2024 Earnings Call Transcript:
Financial Performance:
First Interstate BancSystem reported a Q1 2024 net income of $58.4 million, translating to $0.57 per share.
The net interest income amounted to $200.1 million, showing a decrease due to factors such as increased funding costs and fewer accrual days in Q1 2024.
A minor offset was observed in the Noninterest income which amounted to $42 million, primarily as a result of the gain on the disposition of assets in the last quarter.
The total loan balance saw a decline, primarily due to seasonal declines in agricultural lines.
The total deposits also declined due to strategic decisions such as the release of two high-cost fully collateralized municipal deposits.
Business Progress:
The company notes a currently muted performance in the real estate sector but remains confident in its underwriting and pricing criteria.
The slowdown in liability repricing contrasted with anticipated asset repricing expected to provide a boost later in the year.
First Interstate has made steady progress in maintaining a robust deposit base, stabilizing noninterest-bearing deposits and managing a steady mix of business and consumer accounts.
The company is actively executing stress testing within its loan portfolio which instills confidence regarding borrowers' positioning as loans reprice.
Strategic investments in areas like Treasury Services are expected to potentially increase the future customer base and fee-based revenues.
More details: First Interstate BancSystem IR
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