First In­ter­state Banc­sys­tem re­sults pos­i­tive

The Pak Banker - - Front Page -

BILLINGS

First In­ter­state Banc­Sys­tem, Inc. re­ports third quar­ter 2012 net in­come avail­able to com­mon share­hold­ers of $15.3 mil­lion, or $0.35 per di­luted share, as com­pared to $12.2 mil­lion, or $0.28 per di­luted share, for sec­ond quar­ter 2012, and $11.1 mil­lion, or $0.26 per di­luted share, for third quar­ter 2011.

Sig­nif­i­cant fi­nan­cial state­ment items for the third quar­ter of 2012 in­clude in­come from the orig­i­na­tion and sale of res­i­den­tial mort­gage loans of $11.7 mil­lion dur­ing the three months ended Septem­ber 30, 2012, rep­re­sented a 23.8% in­crease over the prior quar­ter and a 111.6% in­crease over the same quar­ter of the prior year; net in­ter­est mar­gin ra­tio de­clined 11 ba­sis points dur­ing third quar­ter 2012, as com­pared to sec­ond quar­ter 2012, and 21 ba­sis points as com- pared to third quar­ter 2011, due to lower yields earned on loan and in­vest­ment port­fo­lios; non-per­form­ing as­sets con­tin­ued to de­crease, de­clin­ing to $202.7 mil­lion, or 2.72% of to­tal as­sets, as of Septem­ber 30, 2012, from $226.2 mil­lion, or 3.10% of to­tal as­sets, as of June 30, 2012, and $287.7 mil­lion, or 3.94% of to­tal as­sets, as of Septem­ber 30, 2011; pro­vi­sions for loan losses were $9.5 mil­lion for the three months ended Septem­ber 30, 2012, com­pared to $12.0 mil­lion for the three months ended June 30, 2012, and $14.0 mil­lion for the three months ended Septem­ber 30, 2011; and net charge- offs were $13.3 mil­lion dur­ing the three months ended Septem­ber 30, 2012, com­pared to $25.1 mil­lion dur­ing the three months ended June 30, 2012, and $18.3 mil­lion dur­ing the three months ended Septem­ber 30, 2011.

We are very pleased with our third quar­ter per­for­mance, which rep­re­sents a sig­nif­i­cant in­crease in both rev­enue and earn­ings com­pared to the same pe­riod last year, said Ed Gard­ing, Pres­i­dent and Chief Ex­ec­u­tive Of­fi­cer of First In­ter­state Banc­Sys­tem Inc.

Our strong re­sults were largely driven by our po­si­tion­ing as a lead­ing mort­gage lender throughout our foot­print, which has en­abled us to cap­i­tal­ize on the in­creas­ing de­mand for res­i­den­tial mort­gage loans. We also made con­sid­er­able progress in re­solv­ing prob­lem as­sets dur­ing the third quar­ter, which helped im­prove our over­all as­set qual­ity, re­duce our credit costs, and en­hance our level of prof­itabil­ity, Gard­ing fur­ther noted. The Com­pany's net in­ter­est mar­gin ra­tio de­creased to 3.63% dur­ing third quar­ter 2012, as com­pared to 3.74% dur­ing sec­ond quar­ter 2012.

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