First Interstate BancSystem, Inc. (NASDAQ:FIBK) Q1 2024 Earnings Call Transcript

Kevin Riley: I missed the first part of your question, Timur. Could you repeat it?

Timur Braziler: Sure. Kevin, you mentioned the fixed asset repricing benefiting margin trends in the back end of the year. Can you just talk to the magnitude of that, both on the securities and loan side, and then the cadence as well?

Kevin Riley: Marcy is going to handle that one.

Marcy Mutch: Yes, so the securities side, we — it’s in the slide deck, Timur, on Page 13. We really don’t disclose kind of the loan repricing cadence.

Kevin Riley: But it’s in our guidance for…

Marcy Mutch: But it is still within the guidance that we give on overall NII.

Timur Braziler: Okay. Got it. And then, Marcy, maybe do you have the spot rate for deposit costs at quarter end, just to give us a better framework of kind of where the [indiscernible]

Marcy Mutch: You bet. So they were 1.88 for the quarter and 1.89 for March for interest bearing. That’s interest bearing, Timur.

Kevin Riley: That’s interest bearing, Timur.

Marcy Mutch: Yes.

Timur Braziler: Okay. Got it. And then just one last one for me on the credit conversation. Any reserves allocated to that C&I credit? And then maybe just talk a lot more about the relationship with the growth in nonperforming loans versus the allowance ratio and kind of how we should think about the interplay between the two?

Kevin Riley: I’ll give you a little bit of color on the thing is, yes, we recognized reserve on that C&I credit, and that’s baked into the overall reserve. We don’t disclose exactly what that would be, but that reserve is baked into the overall reserve. And with regards to the nonperforming and coverage, we feel comfortable where we’re at with regards to nonperforming loans. And as we said before, we believe, as we said, when someone in last month that some of these are being restructured and they pay down. So we still feel that we’re in good shape with regards to dealing with the nonperforming loans that are there.

Marcy Mutch: Yes. Again, we don’t see any systemic issues. We’re happy with the improvement in criticized loans overall. We see our credit quality as being stable from here on out. And in terms of the reserve, at the level we are, we feel adequately reserved for what we’re seeing within the portfolio.

Operator: [Operator Instructions] And ladies and gentlemen, it appears we have no further questions this morning. Mr. Riley, I’ll hand things back to you, sir, for any closing comments.

Kevin Riley: Okay. Thank you for your questions today on the call. And as always, we welcome calls from our investors and analysts. Please reach out to us if you have any further follow-up questions. Thank you for tuning in today. Bye.

Operator: Thank you, Mr. Riley. Ladies and gentlemen, that will conclude the First Interstate BancSystem First Quarter Earnings Call. Again, I’d like to thank you all so much for joining us and wish you all a great day. Goodbye.