First Interstate Bancsystem results positive
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.