Yahoo Finanzas First Interstate BancSystem Inc (FIBK) Q1 2024 Earnings Call Transcript Highlights: Key ...
Net Income: $58.4 million
Earnings Per Share (EPS): $0.57
Non-Interest Expense: $160.2 million
Net Interest Income: $200.1 million
Net Interest Margin: Decreased by 8 basis points to 2.93%
Non-Interest Income: $42 million
Loan Balances: Declined by $76.8 million
Total Deposits: Declined by $513.1 million
Provision for Credit Losses: $5.3 million
Net Charge-Offs: $8.4 million
Non-Performing Loans: Increased by $63.7 million
CET1 Ratio: Improved by 29 basis points to 11.37%
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Could you provide more details on the $54 million C&I loan that was placed on non-accrual this quarter? A: Kevin Riley, President and CEO, explained that the loan belongs to a distribution company involved in construction materials, with over $100 million in revenue. The company faced management issues, leading to senior management changes and the hiring of a consultant. Riley expressed cautious optimism about resolving the issues and achieving a positive outcome.
Q: Is the 3%-plus core net interest margin (NIM) still expected in the second half of the year? A: Marcy Mutch, CFO, confirmed that they still anticipate achieving a core NIM of over 3% in the latter half of the year, aligning with previous expectations.
Q: If rate cuts do not occur as anticipated, how would that affect your net interest income (NII) guidance for the year? A: Kevin Riley mentioned that despite potential changes in rate cut expectations, the guidance for NII remains stable due to proactive balance sheet restructuring aimed at enduring a higher-for-longer rate environment.
Q: Can you discuss the timing and rate of the $185 million in high-cost municipal funding that left the balance sheet? A: Marcy Mutch noted that the funding, which had an interest rate over 5%, exited the balance sheet in two instances within the quarter, one in January and another in March.
Q: Regarding the large $54 million C&I relationship, how significant is it within the bank's portfolio? A: Kevin Riley indicated that it is one of the bank's five largest relationships, highlighting its importance within a generally granular portfolio.
Q: What updates can you provide on the material weakness mentioned in the Q report and its impact on the bank's strategy? A: Marcy Mutch reassured that there are no expected costs associated with resolving the material weakness. She mentioned that about half of the issues have been remediated, with full resolution expected within the year, and no anticipated impact on strategic operations or capital usage.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
