CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY)

Following is condensed financial information of First Interstate BancSystem, Inc.



December 31,	2018		2017
Condensed balance sheets:
Cash and cash equivalents	$	72.9	$	42.3
Investment in bank subsidiary	1,648.9		1,432.3
Advances to subsidiaries, net	46.0		25.7
Other assets	59.0		61.7
Total assets	$	1,826.8	$	1,562.0

Other liabilities	$	46.0	$	51.9
Subordinated debentures held by subsidiary trusts	86.9		82.5
Total liabilities	132.9		134.4
Stockholders’ equity	1,693.9		1,427.6
Total liabilities and stockholders’ equity	$	1,826.8	$	1,562.0



Years Ended December 31,	2018			2017			2016
Condensed statements of income:
Dividends from subsidiaries	$	148.5		$	150.0		$	140.0
Other interest income	0.1			0.1			—
Other income, primarily management fees from subsidiaries	17.0			18.0			15.1
Total income	165.6			168.1			155.1
Salaries and benefits	25.3			21.8			18.8
Interest expense	4.5			4.7			4.1
Acquisition expenses	8.1			25.3			1.5
Other operating expenses, net	14.5			13.0			10.4
Total expenses	52.4			64.8			34.8
Earnings before income tax benefit	113.2			103.3			120.3
Income tax benefit	(9.3		)	(14.2		)	(7.7		)
Income before undistributed earnings of subsidiaries	122.5			117.5			128.0
Undistributed earnings of subsidiaries	37.7			(11.0		)	(32.4		)
Net income	$	160.2		$	106.5		$	95.6



Years Ended December 31,	2018			2017			2016
Condensed statements of cash flows:
Cash flows from operating activities:
Net income	$	160.2		$	106.5		$	95.6
Adjustments to reconcile net income to cash provided by operating activities:
Undistributed earnings of subsidiaries	(37.7		)	11.0			32.4
Stock-based compensation expense	5.6			3.9			4.4
Tax benefits from stock-based compensation	—			—			2.1
Excess tax benefits from stock-based compensation	—			—			(1.6		)
Other, net	16.4			14.7			(0.8		)
Net cash provided by operating activities	144.5			136.1			132.1
Cash flows from investing activities:
Capital distributions from nonbank subsidiaries	—			18.0			2.0
Acquisition of intangible assets	—			(28.0		)	—
Acquisition of bank holding company, net of cash and cash equivalents received	(14.7		)	(128.3		)	—
Investment in subsidiary	—			(18.0		)	—
Net cash (used) provided in investing activities	(14.7		)	(156.3		)	2.0
Cash flows from financing activities:
Net (decrease) increase in advances from subsidiaries	(9.9		)	(28.4		)	9.1
Repayment of long-term debt	(26.0		)	—			—
Proceeds from issuance of common stock, net of stock issuance costs	1.8			2.4			4.7
Excess tax benefits from stock-based compensation	—			—			1.6
Purchase and retirement of common stock	(1.0		)	(1.3		)	(26.9		)
Dividends paid to common stockholders	(64.1		)	(48.6		)	(39.4		)
Net cash used in financing activities	(99.2		)	(75.9		)	(50.9		)
Net change in cash and cash equivalents	30.6			(96.1		)	83.2
Cash and cash equivalents, beginning of year	42.3			138.4			55.2
Cash and cash equivalents, end of year	$	72.9		$	42.3		$	138.4

There was $173.3 million and $386.0 million in 2018 and 2017, respectively, of noncash financing activities for the issuance of common stock related to the INB and BOTC acquisitions, respectively. There was no noncash investing or financing activities during 2016.