First Interstate BancSystem Inc (FIBK) Reports Q3 2023 Earnings
Net income of $72.7 million, or $0.70 per share, for Q3 2023, compared to net income of $67.0 million, or $0.65 per share, for Q2 2023.
Total deposits increased by $100.3 million, or 0.4%, to $23,679.5 million as of September 30, 2023.
Net interest margin decreased to 3.05% for Q3 2023, a 4 basis point decrease from Q2 2023.
Common equity tier 1 capital ratio was 11.02% in Q3 2023, a 26 basis point increase from Q2 2023.
First Interstate BancSystem Inc (NASDAQ:FIBK) released its earnings report for the third quarter of 2023 on October 25, 2023. The company reported a net income of $72.7 million, or $0.70 per share, compared to a net income of $67.0 million, or $0.65 per share, for the second quarter of 2023. This represents an increase in net income of $5.7 million, or 7.7%, quarter-over-quarter.
Financial Highlights
First Interstate BancSystem Inc (NASDAQ:FIBK) reported total deposits of $23,679.5 million as of September 30, 2023, an increase of $100.3 million, or 0.4%, from $23,579.2 million as of June 30, 2023. The company does not hold brokered deposits.
The company's net interest margin decreased to 3.05% for Q3 2023, a 4 basis point decrease from Q2 2023. On a fully taxable equivalent (FTE) basis, the net interest margin decreased to 3.07% for Q3 2023, a 5 basis point decrease from Q2 2023.
First Interstate BancSystem Inc (NASDAQ:FIBK) reported an increase in its common equity tier 1 capital ratio to 11.02% in Q3 2023, a 26 basis point increase from 10.76% in Q2 2023. This increase was a result of retained earnings and a modest decrease in risk-weighted assets.
CEO Commentary
The strength of the franchise and balance sheet we have built enabled us to deliver another quarter of strong financial performance despite the impact of larger macroeconomic trends that continue to present challenges for the broader banking industry," said Kevin P. Riley, President and Chief Executive Officer of First Interstate BancSystem, Inc.
Dividend Declaration
On October 24, 2023, the company's board of directors declared a dividend of $0.47 per common share, payable on November 16, 2023, to common stockholders of record as of November 6, 2023. The dividend equates to a 7.2% annualized yield based on the $26.10 per share average closing price of the company's common stock as reported on NASDAQ during the third quarter of 2023.
Balance Sheet Summary
As of September 30, 2023, total assets decreased by $435.5 million, or 1.4%, to $30,540.8 million, primarily due to a decrease in investment securities and cash and cash equivalents. Total deposits increased by $100.3 million, or 0.4%, to $23,679.5 million. The ratio of loans held for investment to deposits decreased modestly to 76.9%.
Credit Quality
As of September 30, 2023, non-performing assets decreased by $11.0 million, or 10.3%, to $96.2 million, compared to $107.2 million as of June 30, 2023. This was primarily due to a decrease in non-accrual loans, accruing loans past due 90 days or more, and property classified as other real estate owned.
Explore the complete 8-K earnings release (here) from First Interstate BancSystem Inc for further details.
This article first appeared on GuruFocus.
