First Interstate BancSystem, Inc. (NASDAQ:FIBK) reports fourth quarter 2012 net income available to common shareholders of $16.1 million, or $0.37 per diluted share, as compared to $15.3 million, or $0.35 per diluted share, for third quarter 2012, and $12.4 million, or $0.29 per diluted share, for fourth quarter 2011.
Significant financial statement items for the fourth quarter of 2012 include:
- Income from the origination and sale of residential mortgage loans increased to a record high level of $12.3 million during the three months ended December 31, 2012. This represented a 5.6% increase over the prior quarter and a 52.4% increase over the same quarter of the prior year;
- Net interest margin ratio declined 8 basis points during fourth quarter 2012, as compared to third quarter 2012, and 24 basis points as compared to fourth quarter 2011, due to lower yields earned on loan and investment portfolios;
- Non-performing assets continued to decrease to the lowest level since 2009, declining to $174.6 million, or 2.26% of total assets, as of December 31, 2012, compared to $202.7 million, or 2.72% of total assets, as of September 30, 2012, and $278.9 million, or 3.81% of total assets, as of December 31, 2011; and
- Provision for loan losses was $8.0 million for the three months ended December 31, 2012, compared to $9.5 million for the three months ended September 30, 2012, and $13.8 million for the three months ended December 31, 2011.
(Unaudited; $ in thousands, except per share data)
|As Of or For the Three Months Ended||
Sequential Quarter% Change
Over Year% Change
|December 31,2012||September 30,2012||December 31,2011|
|Net income available to common shareholders||$||16,114||$||15,292||$||12,402||5.4||%||29.9||%|
|Diluted earnings per common share||0.37||0.35||0.29||5.7||%||27.6||%|
|Dividends paid per common share||0.2500||0.1200||0.1125||108.3||%||122.2||%|
|Book value per common share||17.35||17.29||16.77||0.3||%||3.5||%|
|Tangible book value per common share*||12.97||12.90||12.33||0.5||%||5.2||%|
|Net tangible book value per common share*||14.37||14.30||13.74||0.5||%||4.6||%|
|Return on average common equity, annualized||8.55||%||8.22||%||6.84||%|
|Return on average tangible common equity, annualized*||11.45||%||11.07||%||9.31||%|
|Return on average assets, annualized||0.88||%||0.86||%||0.72||%|
|As Of or For the Year Ended|
|December 31,||December 31,||Over Year|
|Net income available to common shareholders||$||54,924||41,124||33.6||%|
|Diluted earnings per common share||1.27||0.96||32.3||%|
|Dividends paid per common share||0.61||0.45||35.6||%|
|Return on average common equity||7.46||%||5.86||%|
|Return on average tangible common equity*||10.07||%||8.06||%|
|Return on average assets||0.79||%||0.61||%|
* See Non-GAAP Financial Measures included herein for a discussion regarding tangible and net tangible book value per common share.
“Our fourth quarter performance capped a strong year for the Company, resulting in a 32% increase in earnings per share year-over-year as well as significant improvements in return on equity and return on assets,” said Ed Garding, President and Chief Executive Officer of First Interstate BancSystem, Inc. “Fourth quarter results were driven by continued robust activity in residential mortgage lending. Growth in this area is reflective of strong demand for refinancing in our markets, as well as enhancements we have made in our systems and processes that have enabled us to capture additional market share. We were also pleased to see further improvement in asset quality and a reduction in credit costs during the quarter. Total non-performing assets declined by 37% from the prior year, which reflects the diligent efforts of our lenders and credit officers in managing these assets to satisfactory resolutions,” Garding further noted.