FIBK - First Interstate Banc GAAP EPS of $0.59 beats by $0.07 revenue of $288.9M beats by $15.56M

• First Interstate Banc press release ( NASDAQ: FIBK ): Q2 GAAP EPS of $0.59 beats by $0.07 .
• Revenue of $288.9M (+87.0% Y/Y) beats by $15.56M .
• Completed the merger and core system conversion of GWB on May 23, 2022, which we anticipate will result in cost savings in the second half of 2022.
• Net interest margin ratio, on a fully taxable equivalent basis, increased to 3.25% for the second quarter of 2022, a 45 basis point increase from the first quarter of 2022. Excluding income related to the Payroll Protection Program ( PPP ) and interest accretion income, the adjusted net interest margin ratio ¹ , on a fully taxable equivalent basis, increased to 3.01% for the second quarter of 2022, a 36 basis point increase from the first quarter of 2022.
• Efficiency ratio of 71.4% for the second quarter of 2022 compared to 89.6% for the first quarter of 2022. Excluding acquisition related expenses and other intangibles amortization, the adjusted efficiency ratio ¹ was 55.8% for the second quarter of 2022 compared to 62.2% for the first quarter of 2022.
• Return on average common stockholders’ equity of 7.5% for the second quarter of 2022. Excluding after-tax acquisition-related costs, recovery in the credit valuation discount on derivatives, and investment securities gains, adjusted return on average tangible common stockholders’ equity ¹ was 11.7% for the second quarter of 2022.
• Loans held for investment increased $217.5 million, or an annualized 5.15% during the second quarter of 2022. Excluding PPP loans, loans held for investment increased $262.4 million, or an annualized 6.4% during the second quarter of 2022.
• A reduction of provisional goodwill of approximately $37.8 million, primarily as a result of the fair value re-evaluation of certain loans held for investment and loans held for sale in the second quarter of 2022 acquired in the GWB acquisition.
• Criticized loans declined $73.1 million, to $780.0 million as of June 30, 2022, from $853.1 million as of March 31, 2022.
• Repurchased 1.7 million shares of common stock at a weighted average price of $37.38, including costs and commissions, pursuant to the newly announced stock repurchase program.
• Tangible book value per common share ¹ of $18.92 as of June 30, 2022, compared to $19.78 as of March 31, 2022 and $20.49 as of June 30, 2021.

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