The provision for loan losses decreased to $375 thousand during second quarter 2013, as compared to $500 thousand during first quarter 2013 and $12.0 million during second quarter 2012. Decreases in the provision for loan losses during second quarter 2013, as compared to first quarter 2013 and second quarter 2012, are reflective of improvement in local and national economic trends, continued improvement in and stabilization of credit quality as evidenced by declining levels of non-performing assets and criticized loans and unusually high levels of recoveries of previously charged-off loans. As of June 30, 2013, non-performing assets were at their lowest level since first quarter 2009 and total criticized assets were at their lowest level since second quarter 2009.
Beginning in 2013, the Company no longer presents accruing loans modified in troubled debt restructurings as non-performing loans. While still considered impaired under applicable accounting guidance, these loans are performing as agreed under their modified terms and management expects performance to continue. Prior period balances and ratios have been adjusted to reflect this change.
On July 2, 2013, the Federal Reserve Board finalized its rule implementing the Basel III regulatory capital framework. The Basel III capital rules, which will phase-in for the Company beginning January 1, 2015, increase minimum capital requirements for banking organizations in terms of both quantity and quality of capital held. Initial calculations indicate that as of June 30, 2013, the Company would meet all fully phased-in Basel III capital adequacy requirements.Second Quarter 2013 Conference Call for Investors First Interstate BancSystem, Inc. will host a conference call to discuss second quarter 2013 results at 11:00 a.m. Eastern Time (9:00 a.m. MT) on Tuesday, July 23, 2013. The conference call will be accessible by telephone and through the Internet. Participants may join the call by dialing 1-877-317-6016 or by logging on to www.FIBK.com. The call will be recorded and made available for replay after 1:00 p.m. Eastern Time (11:00 a.m. MT) on July 23, 2013 through August 23, 2013 by dialing 1-877-344-7529 (using conference ID 10030187). The call will also be archived on our website, www.FIBK.com, for one year. About First Interstate BancSystem, Inc. First Interstate BancSystem, Inc. is a financial and bank holding company incorporated in 1971 and headquartered in Billings, Montana. The Company operates 74 banking offices, including detached drive-up facilities, in 41 communities in Montana, Wyoming and western South Dakota. Through First Interstate Bank, the Company delivers a comprehensive range of banking products and services to individuals, businesses, municipalities and other entities throughout the Company's market areas.
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