This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

First Interstate BancSystem, Inc. Reports Second Quarter 2012 Results

Stocks in this article: FIBK

Employee benefits expense decreased during second quarter 2012, as compared to first quarter 2012, primarily due to decreases in the market value of securities held under deferred compensation plans and lower payroll tax and group insurance expenses. During second quarter 2012, fluctuations in the market value of securities held under deferred compensation plans resulted in a decrease in employee benefits expense of $356 thousand, as compared to an increase in employee benefits expense of $474 thousand during first quarter 2012 and $197 thousand during second quarter 2011.

For the six months ended June 30, 2012, as compared to the same period in 2011, decreases in the market values of securities held under deferred compensation plans were more than offset by increases in stock-based compensation expense, higher profit sharing accruals reflective of improved performance and increases in group medical insurance costs.

Increases in OREO expense during second quarter 2012, as compared to first quarter of 2012, were attributable to additional carrying costs associated with properties foreclosed during the period. Second quarter 2012 OREO expense included net operating expenses of $1.3 million, compared with net operating expenses of $453 thousand during first quarter 2012. Decreases in OREO expense during the three and six months ended June 30, 2012, as compared to the same periods in the prior year, were primarily the result of write-downs in the estimated fair value of OREO properties. During the three and six months ended June 30, 2012, the Company wrote-down the estimated fair value of OREO properties by $580 thousand and $1.1 million, respectively, as compared to write-downs of $2.0 million and $3.5 million during the same respective periods in the prior year.

Included in other expenses for second quarter 2012, is $1.5 million of donation expense associated with the second quarter 2012 sale of a bank building to a charitable organization. In addition, unamortized issuance costs of $428 thousand associated with redeemed junior subordinated debentures were charged to other expense during second quarter 2012. Other expense increased during the six months ended June 30, 2012, as compared to the same period in 2011, primarily due to increased donations expense and the write-off of unamortized debt issuance costs discussed above, and the accrual of $3.0 million of estimated collection and settlement costs during the first quarter 2012.

 
ASSET QUALITY

(Unaudited; $ in thousands)

 
  For the Three Months Ended
    June 30,2012   March 31,2012   June 30,2011
Allowance for loan losses - beginning of period $ 115,902   $ 112,581   $ 124,446
Charge-offs (26,745 ) (9,087 ) (16,102 )
Recoveries 1,637 1,158 835
Provision   12,000     11,250     15,400  
Allowance for loan losses - end of period   $ 102,794     $ 115,902     $ 124,579  
 
    June 30,2012   March 31,2012   June 30,2011
Period end loans $ 4,169,963 $ 4,158,616 $ 4,281,260
Average loans 4,159,565 4,165,203 4,269,637
Non-performing loans:
Non-accrual loans 129,923 180,910 229,662
Accruing loans past due 90 days or more 6,451 5,017 2,194
Troubled debt restructurings   35,959     36,838     31,611  
Total non-performing loans 172,333 222,765 263,467
Other real estate owned   53,817     44,756     28,323  
Total non-performing assets   $ 226,150     $ 267,521     $ 291,790  
 
Net charge-offs to average loans, annualized 2.43 % 0.76 % 1.43 %
Provision for loan losses to average loans, annualized 1.16 % 1.08 % 1.45 %
Allowance for loan losses to period end loans 2.47 % 2.79 % 2.91 %
Allowance for loan losses to total non-performing loans 59.65 % 52.03 % 47.28 %
Non-performing loans to period end loans 4.13 % 5.36 % 6.15 %
Non-performing assets to period end loans and other real estate owned 5.35 % 6.36 % 6.77 %
Non-performing assets to total assets   3.10 %   3.60 %   4.05 %

As of June 30, 2012, total non-performing loans included $152 million of real estate loans, of which $53 million were construction loans and $80 million were commercial real estate loans. Non-performing construction loans as of June 30, 2012 were comprised of land acquisition and development loans of $39 million, commercial construction loans of $11 million and residential construction loans of $3 million.

3 of 11

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs