First Interstate Bancsystem (FIBK) has reported 14.92 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $23.13 million, or $0.51 a share in the quarter, compared with $20.12 million, or $0.45 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $23.56 million, or $0.52 a share compared with $20.14 million or $0.45 a share, a year ago. Revenue during the quarter grew 3.98 percent to $96.27 million from $92.59 million in the previous year period. Net interest income for the quarter rose 1.39 percent over the prior year period to $68.89 million. Non-interest income for the quarter rose 1.64 percent over the last year period to $29.11 million.
First Interstate Bancsystem has made provision of $1.73 million for loan losses during the quarter, down 56.75 percent from $4 million in the same period last year.
Net interest margin contracted 5 basis points to 3.49 percent in the quarter from 3.54 percent in the last year period. Efficiency ratio for the quarter deteriorated to 64.99 percent from 64.46 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"Although we delivered a 15% increase in core earnings per share over the prior year, loan growth in the first quarter was somewhat weaker than we expected given our pipeline at year end,” said Kevin P. Riley, president and chief executive officer of First Interstate BancSystem, Inc. “While the first quarter is a seasonally slower period, our loan balances came in lower than expected as we are seeing heightened competition in certain loan segments such as commercial real estate, with many deals not meeting our criteria for pricing and structure. As we enter the seasonally stronger second quarter, we are seeing a pick up in commercial, residential mortgage, construction and agriculture lending opportunities that should help drive improved results next quarter," continued Mr. Riley.
Assets, liabilities remain almost stableTotal assets stood at $9,061.23 million as on Mar. 31, 2017, up 4.26 percent compared with $8,690.68 million on Mar. 31, 2016. On the other hand, total liabilities stood at $8,059.64 million as on Mar. 31, 2017, down 45.75 percent from $14,856.13 million on Mar. 31, 2016.
Loans outpace deposit growthNet loans stood at $5,323.55 million as on Mar. 31, 2017, up 3.08 percent compared with $5,164.53 million on Mar. 31, 2016. Deposits stood at $7,300.18 million as on Mar. 31, 2017, up 2.71 percent compared with $7,107.46 million on Mar. 31, 2016. Loans to deposits ratio was 73.97 percent for the quarter, up from 73.79 percent for the previous year quarter.
Investments stood at $2,148.56 million as on Mar. 31, 2017, up 0.18 percent or $3.82 million from year-ago. Shareholders equity stood at $1,001.60 million as on Mar. 31, 2017, up 6.32 percent or $59.58 million from year-ago.
Return on average assets moved up 11 basis points to 1.05 percent in the quarter from 0.94 percent in the last year period. At the same time, return on average equity increased 88 basis points to 9.48 percent in the quarter from 8.60 percent in the last year period.
Credit quality deterioratesFirst Interstate Bancsystem witnessed a deterioration in credit quality during the quarter. Nonperforming assets moved up 14.30 percent or $11.08 million to $88.54 million on Mar. 31, 2017 from $77.46 million on Mar. 31, 2016. Nonperforming assets to total loans was 1.64 percent in the quarter, up from 1.47 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.98 percent in the quarter, up from 0.89 percent in the last year period. Tier-1 leverage ratio stood at 10.09 percent for the quarter, up from 10.07 percent for the previous year quarter. Average equity to average assets ratio was 11.07 percent for the quarter, up from 10.96 percent for the previous year quarter. Book value per share was $22.19 for the quarter, up 5.32 percent or $1.12 compared to $21.07 for the same period last year.
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