Exhibit 99.1

First Interstate BancSystem, Inc. Reports Results for Fourth Quarter 2010

For Immediate Release

Contact:		Marcy Mutch		NASDAQ: FIBK
		Investor Relations Officer		www.FIBK.com
		First Interstate BancSystem, Inc.
		(406) 255-5322
		investor.relations@fib.com

First Interstate BancSystem, Inc. reports fourth quarter 2010 net income available to common stockholders of $10.0 million, or $0.23 per diluted share, as compared to $7.9 million, or $0.18 per diluted share, for third quarter 2010 and $10.7 million, or $0.34 per diluted share, for fourth quarter 2009. Return on average common equity and return on average assets were 5.68% and 0.58%, respectively, for the fourth quarter of 2010, compared to 4.52% and 0.48%, respectively, in the third quarter of 2010, and 8.07% and 0.65%, respectively, in the fourth quarter of 2009.

RESULTS SUMMARY

		Three Months Ended												Sequential				Year
		December 31,				September 30,				December 31,				Quarter				Over Year
(Unaudited; $ in thousands, except per share data)		2010				2010				2009				%Change				% Change
Net income		$	10,838			$	8,729			$	11,521				24.2	%			-5.9	%
Net income available to common stockholders			9,975				7,867				10,658				26.8	%			-6.4	%
Diluted earnings per common share			0.23				0.18				0.34				27.8	%			-32.4	%
Dividends per common share			0.1125				0.1125				0.1125				0.0	%			0.0	%
Book value per common share			16.05				16.23				16.73				-1.1	%			-4.1	%
Tangible book value per common share*			11.55				11.72				10.53				-1.5	%			9.7	%
Net tangible book value per common share*			12.96				13.14				12.46				-1.4	%			4.0	%
Return on average common equity			5.68	%			4.52	%			8.07	%
Return on average assets			0.58	%			0.48	%			0.65	%

		Twelve Months Ended								Year
		December 31,				December 31,				Over Year
		2010				2009				%Change
Net income		$	37,356			$	53,863				-30.6	%
Net income available to common stockholders			33,934				50,441				-32.7	%
Diluted earnings per common share			0.85				1.59				-46.5	%
Dividends per common share			0.4500				0.5000				-10.0	%
Return on average common equity			5.22	%			9.98	%
Return on average assets			0.52	%			0.79	%

“Overall, First Interstate BancSystem performed well in 2010 in the midst of a difficult economy,” said Lyle R. Knight, President and Chief Executive Officer for First Interstate BancSystem, Inc. “The current low interest rate environment combined with diminished loan demand challenged us in 2010 and we expect these trends to continue in upcoming quarters. Improvement in our results from last quarter was largely due to strong income from the origination and sale of residential real estate loans and the reversal of previously recorded mortgage servicing rights impairment. The performance of the loan portfolio in the fourth quarter was consistent with our expectations, with previously identified problem assets continuing to migrate through the credit continuum without any surprises in terms of the degree of deterioration. While our provision for loan losses was slightly lower during the fourth quarter 2010, as compared to third quarter 2010, our allowance for loan losses as a percentage of total loans increased to 2.76%, a level we feel is sufficient to provide for estimated losses inherent in our loan portfolio. With this strong reserve and the conservative position we have taken on our impaired loans, we believe credits costs will be manageable in 2011. In addition, we will continue to strategically manage our balance sheet in order to optimize our net interest margin and will work to identify and implement changes to our cost structures to reduce the growth of non-interest expenses.”

REVENUE SUMMARY

		Three Months Ended												Sequential				Year
		December 31,				September 30,				December 31,				Quarter				Over Year
(Unaudited; $ in thousands)		2010				2010				2009				%Change				% Change
Interest income		$	76,215			$	78,965			$	82,678				-3.5	%			-7.8	%
Interest expense			13,365				15,221				19,094				-12.2	%			-30.0	%
Net interest income			62,850				63,744				63,584				-1.4	%			-1.2	%
Non-interest income:
Other service charges, commissions and fees			7,421				7,821				7,124				-5.1	%			4.2	%
Income from the origination and sale of loans			8,027				7,355				5,246				9.1	%			53.0	%
Service charges on deposit accounts			4,327				4,497				5,038				-3.8	%			-14.1	%
Wealth management revenues			3,083				3,091				2,894				-0.3	%			6.5	%
Investment securities gains, net			62				66				11				-6.1	%			463.6	%
Other income			2,591				2,025				1,897				28.0	%			36.6	%
Total non-interest income			25,511				24,855				22,210				2.6	%			14.9	%
Total revenues		$	88,361			$	88,599			$	85,794				-0.3	%			3.0	%
Tax equivalent net interest margin ratio			3.72	%			3.89	%			4.05	%

		Twelve Months Ended								Year
		December 31,				December 31,				Over Year
		2010				2009				%Change
Interest income		$	314,543			$	328,034				-4.1	%
Interest expense			63,107				84,898				-25.7	%
Net interest income			251,436				243,136				3.4	%
Non-interest income:
Other service charges, commissions and fees			29,494				28,747				2.6	%
Income from the origination and sale of loans			22,868				30,928				-26.1	%
Service charges on deposit accounts			18,181				20,323				-10.5	%
Wealth management revenues			12,387				10,821				14.5	%
Investment securities gains, net			170				137				24.1	%
Other income			7,811				9,734				-19.8	%
Total non-interest income			90,911				100,690				-9.7	%
Total revenues		$	342,347			$	343,826				-0.4	%
Tax equivalent net interest margin ratio			3.89	%			4.05	%

Net Interest Income

During fourth quarter 2010, continued low loan demand negatively impacted net interest income and contributed to a 17 basis point reduction in net interest margin ratio. Average loans decreased $103 million, or 2.3% during fourth quarter 2010, as compared to third quarter 2010, resulting in an approximate 9 basis point reduction in the Company’s net interest margin ratio. The remaining compression in net interest margin ratio was attributable to lower yields earned on the Company’s investment security and loan portfolios, partially offset by a 16 basis point reduction in funding costs during fourth quarter 2010.

Non-interest Income

Refinancing activity remained elevated during the fourth quarter of 2010 resulting in an increase in income from the origination and sale of loans, as compared to third quarter 2010 and fourth quarter 2009. Refinancing activity accounted for approximately 72% of the Company’s residential real estate loan originations during fourth quarter 2010, as compared to 69% during third quarter 2010, and 53% during fourth quarter 2009. Increases in refinancing activity were partially offset by fewer originations of loans to purchase homes, which decreased 5% during fourth quarter 2010, as compared to third quarter 2010, and 12% as compared to fourth quarter 2009. Income from the origination and sale of loans decreased during the twelve months ended December 31, 2010, as compared to the same period in the prior year, due to a substantial decline in refinancing activity from early 2009.

Other income increased during fourth quarter 2010, compared to third quarter 2010 and fourth quarter 2009, primarily due to increases in earnings of securities held under deferred compensation plans and life insurance proceeds. Other income decreased during the twelve months ended December 31, 2010, as compared to the same periods in 2009, primarily due to a $2.1 million one-time gain on the sale of Visa Class B common shares recorded during third quarter 2009.

NON-INTEREST EXPENSE

		Three Months Ended												Sequential				Year
		December 31,				September 30,				December 31,				Quarter				Over Year
(Unaudited; $ in thousands)		2010				2010				2009				%Change				% Change
Non-interest expense:
Salaries, wages and employee benefits		$	29,216			$	27,994			$	27,980				4.4	%			4.4	%
Occupancy, net			4,207				3,939				4,242				6.8	%			-0.8	%
Furniture and equipment			3,326				3,411				3,389				-2.5	%			-1.9	%
FDIC insurance premiums			2,584				2,337				2,389				10.6	%			8.2	%
Outsourced technology services			2,377				2,402				2,279				-1.0	%			4.3	%
Other real estate owned expense, net of income			1,541				2,608				318				-40.9	%			384.6	%
Mortgage servicing rights amortization			1,146				1,221				1,224				-6.1	%			-6.4	%
Mortgage servicing rights impairment (recovery)			(2,999	)			1,991				(255	)			-250.6	%			1076.1	%
Core deposit intangibles amortization			432				437				531				-1.1	%			-18.6	%
Other expenses			12,993				11,670				13,055				11.3	%			-0.5	%
Total non-interest expense		$	54,823			$	58,010			$	55,152				-5.5	%			-0.6	%

		Twelve Months Ended								Year
		December 31,				December 31,				Over Year
		2010				2009				%Change
Non-interest expense:
Salaries, wages and employee benefits		$	112,667			$	113,569				-0.8	%
Occupancy, net			16,251				15,898				2.2	%
Furniture and equipment			13,434				12,405				8.3	%
FDIC insurance premiums			10,044				12,130				-17.2	%
Outsourced technology services			9,477				10,567				-10.3	%
Other real estate owned expense, net of income			7,670				6,397				19.9	%
Mortgage servicing rights amortization			4,615				7,568				-39.0	%
Mortgage servicing rights impairment (recovery)			(787	)			(7,224	)			-89.1	%
Core deposit intangibles amortization			1,748				2,131				-18.0	%
Other expenses			45,885				44,269				3.7	%
Total non-interest expense		$	221,004			$	217,710				1.5	%

Salaries, wages and employees benefits expenses increased during fourth quarter 2010, as compared to third quarter 2010 and fourth quarter 2009. The increase is primarily due to higher group medical insurance costs.

Variations in net OREO expense between periods were primarily due to fluctuations in write-downs of the estimated fair value of OREO properties. Fourth quarter 2010 net OREO expense included $367 thousand of operating expenses, $1.2 million of fair value write-downs and net losses of $13 thousand on the sale of OREO properties.

FDIC insurance premiums increased during fourth quarter 2010, as compared to third quarter 2010, due to the adjustment of third quarter assessment estimates to actual amounts. FDIC insurance premiums decreased in 2010, as compared to 2009, due to a special FDIC insurance assessment levied during second quarter 2009. The special assessment, which was applicable to all insured depository institutions, resulted in additional FDIC insurance expense of $3.1 million in 2009.

Fluctuations in the fair value of mortgage servicing rights are primarily due to changes in assumptions regarding estimated prepayments of the underlying mortgage loans, which typically correspond with changes in market interest rates. Mortgage interest rates increased during fourth quarter 2010, resulting in a $3.0 million recovery of previously recorded impairment in the fair value of mortgage servicing rights.

On December 1, 2010, the Company sold mortgage servicing rights with a book value of $5 million. A loss of $1.5 million on the sale was included in other expense during fourth quarter 2010. In conjunction with the sale, the Company entered into an agreement with the purchaser whereby the Company continues to sub-service the loans underlying the sold mortgage servicing rights.

ASSET QUALITY

		Three Months Ended
		December 31,				September 30,				December 31,
(Unaudited; $ in thousands)		2010				2010				2009
Allowance for loan losses — beginning of period		$	120,236			$	114,328			$	101,748
Charge-offs			(18,045	)			(12,789	)			(12,793	)
Recoveries			789				697				575
Provision			17,500				18,000				13,500
Allowance for loan losses — end of period		$	120,480			$	120,236			$	103,030
		December 31,				September 30,				December 31,
		2010				2010				2009
Period end loans		$	4,367,909			$	4,452,387			$	4,528,004
Average loans			4,402,141				4,504,657				4,561,237
Non-performing loans:
Nonaccrual loans			195,342				174,249				115,030
Accruing loans past due 90 days or more			1,852				1,129				4,965
Restructured loans			13,490				26,630				4,683
Total non-performing loans			210,684				202,008				124,678
Other real estate owned			33,632				35,296				38,400
Total non-performing assets		$	244,316			$	237,304			$	163,078
Net charge-offs to average loans (annualized)			1.56	%			1.06	%			1.06	%
Provision for loan losses to average loans (annualized)			1.58	%			1.59	%			1.17	%
Allowance for loan losses to period end loans			2.76	%			2.70	%			2.28	%
Allowance for loan losses to total non-performing loans			57.19	%			59.52	%			82.64	%
Non-performing loans to period end loans			4.82	%			4.54	%			2.75	%
Non-performing assets to period end loans and other real estate owned			5.55	%			5.29	%			3.57	%
Non-performing assets to total assets			3.33	%			3.24	%			2.28	%

The Company’s loan portfolio continued to be adversely impacted by difficult economic conditions in certain of its market areas. The Flathead, Gallatin Valley and Jackson market areas, which are dependent upon resort and second home communities, accounted for approximately 68% of loans charged-off during fourth quarter 2010 and approximately 54% of the Company’s non-performing assets as of December 31, 2010, versus only 21% of the Company’s total loans as of the same date.

As of December 31, 2010, total non-performing loans included $170 million of real estate loans, of which $78 million were construction loans and $73 million were commercial real estate loans. Non-performing construction loans as of December 31, 2010 were comprised of land acquisition and development loans of $44 million, residential construction loans of $17 million and commercial construction loans of $17 million.

Nonaccrual loans increased during fourth quarter 2010, as compared to third quarter 2010, primarily due to the commercial and commercial real estate loans of three borrowers. Approximately 45% of the increase was attributable to one borrower in the Jackson market area. As of December 31, 2010, approximately 76% of the Company’s nonaccrual loans were current with regard to principal payments.

During fourth quarter 2010, the Company placed the restructured loans of two commercial real estate borrowers on nonaccrual. These loans, which aggregated $7 million, are included in the nonaccrual loans balance in the above table. The remaining decrease in restructured loans at December 31, 2010, as compared to September 30, 2010, was primarily due to payments received on the loans of one commercial and commercial real estate borrower. As of December 31, 2010, all of the Company’s restructured loans were performing in accordance with their restructured terms.

During fourth quarter 2010, the Company recorded additions to OREO of $4 million, wrote down the fair value of OREO properties by $1 million and sold OREO with a book value of $5 million.

Provision for loan losses reflects management’s estimation of the effect of current economic conditions on the Company’s loan portfolio. Approximately 50% of the fourth quarter provision for loan losses was attributable to the Flathead, Gallatin Valley and Jackson market areas. Management expects quarterly provisions for loan losses to remain at elevated levels until a leveling-off or decline in non-performing assets occurs.

Following is a summary of the Company’s credit quality trends since the start of 2008.

CREDIT QUALITY TRENDS

		Provisions								Allowance				Loans												Potential
		for				Net				for				30 - 89 Days				Non-Performing				Non-Performing				Problem
(Unaudited; $ in thousands)		Loan Losses				Charge-offs				Loan Losses				Past Due				Loans				Assets				Loans
Q1 2008		$	2,363			$	766			$	68,415			$	55,532			$	58,047			$	58,921			$	74,348
Q2 2008			5,321				1,086				72,650				81,571				92,403				95,108				94,371
Q3 2008			5,636				1,192				77,094				58,085				89,800				92,971				87,176
Q4 2008			20,036				9,814				87,316				92,180				90,922				96,947				138,850
Q1 2009			9,600				4,693				92,223				98,980				103,653				122,300				181,263
Q2 2009			11,700				5,528				98,395				88,632				135,484				167,273				166,673
Q3 2009			10,500				7,147				101,748				91,956				125,083				156,958				207,961
Q4 2009			13,500				12,218				103,030				63,878				124,678				163,078				220,976
Q1 2010			11,900				8,581				106,349				62,675				133,042				177,022				254,314
Q2 2010			19,500				11,521				114,328				99,334				158,113				200,451				286,483
Q3 2010			18,000				12,092				120,236				47,966				202,008				237,304				279,128
Q4 2010			17,500				17,256				120,480				57,011				210,684				244,312				238,250

Potential problem loans consist of performing loans that have been internally risk classified due to uncertainties regarding the borrowers ability to continue to comply with the contractual repayment terms of the loans. Potential problem loans decreased during fourth quarter 2010, as compared to third quarter 2010, primarily due to the movement of potential problem loans to the non-performing loan category.

														Sequential				Year
		December 31,				September 30,				December 31,				Quarter				Over Year
(Unaudited; $ in thousands)		2010				2010				2009				% Change				% Change
Cash and cash equivalents		$	685,618			$	542,355			$	623,482				26.4	%			10.0	%
Investment securities			1,933,403				1,829,424				1,446,280				5.7	%			33.7	%
Loans			4,367,909				4,452,387				4,528,004				-1.9	%			-3.5	%
Less allowance for loan losses			120,480				120,236				103,030				0.2	%			16.9	%
Net loans			4,247,429				4,332,151				4,424,974				-2.0	%			-4.0	%
Other assets			634,520				625,271				642,917				1.5	%			-1.3	%
Total assets		$	7,500,970			$	7,329,201			$	7,137,653				2.3	%			5.1	%

The Company continued to invest excess liquidity into investment securities during fourth quarter 2010. The duration of the Company’s investment securities portfolio increased to an estimated 2.5 years as of December 31, 2010, from 1.7 years as of September 30, 2010. This increase in duration was primarily driven by higher market interest rates as of December 31, 2010 and the resulting extensions in the estimated lives of our mortgage-backed investment securities.

														Sequential				Year
		December 31,				September 30,				December 31,				Quarter				Over Year
(Unaudited; $ in thousands)		2010				2010				2009				% Change				% Change
Real estate loans:
Commercial		$	1,565,665			$	1,565,525			$	1,556,273				0.0	%			0.6	%
Construction:
Land acquisition & development			329,720				360,890				403,866				-8.6	%			-18.4	%
Residential			99,196				111,545				134,970				-11.1	%			-26.5	%
Commercial			98,542				91,713				98,056				7.4	%			0.5	%
Total construction loans			527,458				564,148				636,892				-6.5	%			-17.2	%
Residential			549,604				544,952				539,098				0.9	%			1.9	%
Agriculture			182,794				189,895				195,045				-3.7	%			-6.3	%
Mortgage loans originated for sale			46,408				53,722				36,430				-13.6	%			27.4	%
Total real estate loans			2,871,929				2,918,242				2,963,738				-1.6	%			-3.1	%
Consumer:
Indirect consumer loans			423,552				432,869				423,104				-2.2	%			0.1	%
Other consumer loans			162,137				165,725				195,331				-2.2	%			-17.0	%
Credit card loans			60,891				59,222				59,113				2.8	%			3.0	%
Total consumer loans			646,580				657,816				677,548				-1.7	%			-4.6	%
Commercial			730,471				739,151				750,647				-1.2	%			-2.7	%
Agricultural			116,546				134,689				134,470				-13.5	%			-13.3	%
Other loans, including overdrafts			2,383				2,489				1,601				-4.3	%			48.8	%
Total loans		$	4,367,909			$	4,452,387			$	4,528,004				-1.9	%			-3.5	%

Total loans declined during fourth quarter 2010, as compared to third quarter 2010, with the most significant decreases occurring in land acquisition and development and residential construction loans. Management attributes these decreases to a general decline in new home construction, particularly in markets that are dependent upon resort and second home communities including the Flathead, Gallatin Valley and Jackson market areas, and the movement of loans out of the loan portfolio through charge-off, pay-off or foreclosure.

														Sequential				Year
		December 31,				September 30,				December 31,				Quarter				Over Year
(Unaudited; $ in thousands)		2010				2010				2009				% Change				% Change
Deposits		$	5,925,713			$	5,902,181			$	5,824,056				0.4	%			1.7	%
Securities sold under repurchase agreements			620,154				455,861				474,141				36.0	%			30.8	%
Other borrowed funds			4,991				5,674				5,423				-12.0	%			-8.0	%
Long-term debt			37,502				37,513				73,353				0.0	%			-48.9	%
Subordinated debentures held by subsidiary trusts			123,715				123,715				123,715				0.0	%			0.0	%
Other liabilities			52,093				59,554				62,531				-12.5	%			-16.7	%
Total liabilities		$	6,764,168			$	6,584,498			$	6,563,219				2.7	%			3.1	%

All outstanding repurchase agreements are with commercial and municipal depositors and are due in one day. Fluctuations in repurchase agreements are primarily due to changes in the liquidity needs of customers.

Long-term debt decreased during the year primarily due to the early extinguishment of variable rate term notes in March 2010 and, to a lesser extent, scheduled repayments of long-term Federal Home Loan Bank borrowings.

														Sequential				Year
		December 31,				September 30,				December 31,				Quarter				Over Year
(Unaudited; $ in thousands)		2010				2010				2009				% Change				% Change
Non-interest bearing demand		$	1,063,869			$	1,098,375			$	1,026,584				-3.1	%			3.6	%
Interest bearing:
Demand			1,218,078				1,144,415				1,197,254				6.4	%			1.7	%
Savings			1,718,521				1,599,774				1,362,410				7.4	%			26.1	%
Time, $100 and over			908,044				981,941				996,839				-7.5	%			-8.9	%
Time, other			1,017,201				1,077,676				1,240,969				-5.6	%			-18.0	%
Total interest bearing			4,861,844				4,803,806				4,797,472				1.2	%			1.3	%
Total deposits		$	5,925,713			$	5,902,181			$	5,824,056				0.4	%			1.7	%

Increases in deposits were solely the result of organic growth. During 2010, the Company has experienced a slight shift in the mix of deposits away from higher-costing time deposits to lower-costing savings, interest bearing demand and non-interest bearing demand deposits.

														Sequential				Year
		December 31,				September 30,				December 31,				Quarter				Over Year
(Unaudited, $ in thousands, except per share data)		2010				2010				2009				% Change				% Change
Preferred stockholders’ equity		$	50,000			$	50,000			$	50,000				0.0	%			0.0	%
Common stockholders’ equity			677,427				671,755				509,359				0.8	%			33.0	%
Accumulated other comprehensive income, net			9,375				22,948				15,075				-59.1	%			-37.8	%
Total stockholders’ equity		$	736,802			$	744,703			$	574,434				-1.1	%			28.3	%
Book value per common share		$	16.05			$	16.23			$	16.73				-1.1	%			-4.1	%
Tangible book value per common share*		$	11.55			$	11.72			$	10.53				-1.5	%			9.7	%
Net tangible book value per common share *		$	12.96			$	13.14			$	12.46				-1.4	%			4.0	%

On March 29, 2010, the Company completed an IPO of 11,500,000 shares of Class A common stock. The Company received net proceeds of $153 million from the offering, after deducting underwriting discounts, commissions and other offering costs.

Decreases in book value per common share, tangible book value per common share and net tangible book value per common share during fourth quarter, as compared to third quarter 2010 and fourth quarter 2009, are due to fluctuations in the mark-to-market adjustment on available-for-sale securities.

On December 7, 2010, the Company declared a quarterly dividend to common stockholders of $0.1125 per share. This dividend was paid on January 17, 2011 to shareholders of record as of January 3, 2011.

		December 31,				September 30,				December 31,
(Unaudited)		2010				2010				2009
Tangible common stockholders’ equity to tangible assets*			6.76	%			7.03	%			4.76	%
Net tangible common stockholders’ equity to tangible assets*			7.59	%			7.88	%			5.63	%
Tier 1 common capital to total risk weighted assets			10.12	%			9.85	%			6.43	%
Leverage ratio			9.27	%**			9.38	%			7.30	%
Tier 1 risk-based capital			13.53	%**			13.22	%			9.74	%
Total risk-based capital			15.50	%**			15.18	%			11.68	%

The Company exceeds “well capitalized” requirements under all regulatory capital guidelines. Significant increases in capital ratios at December 31, 2010, as compared to December 31, 2009, reflect the impact of additional capital raised from the Company’s IPO in March 2010.

Fourth Quarter 2010 Conference Call for Investors

First Interstate BancSystem, Inc. will host a conference call to discuss fourth quarter 2010 results at 11:00 a.m. Eastern Time (9:00 a.m. MST) on Friday, February 4, 2011. The conference call will be accessible by telephone and through the Internet. Participants may join the call by dialing 1-877-317-6789 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. MST) on February 4, 2011 through the end of the first quarter by dialing 1-877-344-7529 (using conference ID 447070). 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 72 banking offices in 42 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.

Cautionary Statement

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are covered by the safe harbor provisions of such sections. These statements include statements about monitoring credit quality, identifying and addressing problem loans, the Company’s level of allowance for loan losses, managing net interest margin, reducing growth of non-interest expenses, the effect of discontinuation of the TAG program on deposits, quarterly provisions for loan losses and non-performing assets. Forward-looking statements involve known and unknown risks and uncertainties that are difficult to predict. Therefore, the Company’s actual results, performance or achievements may differ materially from those expressed in or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions.

The following factors, among others, may cause actual results to differ materially from current expectations in the forward-looking statements, including those set forth in this release:

	•		credit losses;
	•		concentrations of real estate loans;
	•		economic and market developments, including inflation;
	•		commercial loan risk;
	•		adequacy of the allowance for loan losses;
	•		impairment of goodwill;
	•		changes in interest rates;
	•		access to low-cost funding sources;
	•		increases in deposit insurance premiums;
	•		inability to grow business;
	•		changes in loan demand;
	•		adverse economic conditions affecting Montana, Wyoming and western South Dakota;
	•		governmental regulation and changes in regulatory, tax and accounting rules and interpretations;
	•		changes in or noncompliance with governmental regulations;
	•		effects of recent legislative and regulatory efforts to stabilize financial markets;
	•		dependence on the Company’s management team;
	•		ability to attract and retain qualified employees;
	•		failure of technology;
	•		disruption of vital infrastructure and other business interruptions;
	•		illiquidity in the credit markets;
	•		inability to meet liquidity requirements;
	•		lack of acquisition candidates;
	•		failure to manage growth;
	•		competition;
	•		inability to manage risks in turbulent and dynamic market conditions;
	•		ineffective internal operational controls;
	•		environmental remediation and other costs;
	•		failure to effectively implement technology-driven products and services;
	•		litigation pertaining to fiduciary responsibilities;
	•		capital required to support the Company’s bank subsidiary;
	•		soundness of other financial institutions;
	•		impact of Basel capital standards;
	•		inability of our bank subsidiary to pay dividends;
	•		change in dividend policy;
	•		lack of public market for our common stock;
	•		volatility of Class A common stock;
	•		voting control;
	•		decline in market price of Class A common stock;
	•		dilution as a result of future equity issuances;
	•		use of net proceeds;
	•		uninsured nature of any investment in Class A common stock;
	•		anti-takeover provisions;
	•		intent to qualify as a controlled company; and
	•		subordination of common stock to company debt.

A more detailed discussion of each of the foregoing risks is included in the Company’s periodic and current reports filed with the Securities and Exchange Commission and is contained in our most recently filed prospectus dated March 23, 2010, filed March 24, 2010. These factors and the other risk factors described in the Company’s periodic and current reports filed with the Securities and Exchange Commission from time to time, however, are not necessarily all of the important factors that could cause the Company’s actual results, performance or achievements to differ materially from those expressed in or implied by any of the Company’s forward-looking statements. Other unknown or unpredictable factors also could harm the Company’s results. Investors and others are encouraged to read the more detailed discussion of the Company’s risks contained in the Company’s most recently filed prospectus, which discussion in incorporated herein by reference.

All forward-looking statements attributable to the Company or persons acting on the Company’s behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made and the Company does not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If the Company updates one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements.

Consolidated Balance Sheets

		December 31,				September 30,				December 31,
(Unaudited, $ in thousands)		2010				2010				2009
Assets
Cash and due from banks		$	107,035			$	124,933			$	213,029
Federal funds sold			2,114				774				11,474
Interest bearing deposits in banks			576,469				416,648				398,979
Total cash and cash equivalents			685,618				542,355				623,482
Investment securities:
Available-for-sale			1,786,335				1,692,426				1,316,429
Held-to-maturity (estimated fair values of $146,508, $141,543 and $130,855 as of December 31, 2010, September 30, 2010 and December 31, 2009, respectively)			147,068				136,998				129,851
Total investment securities			1,933,403				1,829,424				1,446,280
Loans			4,367,909				4,452,387				4,528,004
Less allowance for loan losses			120,480				120,236				103,030
Net loans			4,247,429				4,332,151				4,424,974
Premises and equipment, net			188,138				192,021				196,307
Goodwill			183,673				183,673				183,673
Company-owned life insurance			73,056				72,867				71,374
Other real estate owned			33,632				35,296				38,400
Accrued interest receivable			33,628				37,251				37,123
Deferred tax asset			18,472				—				—
Mortgage servicing rights, net of accumulated amortization and impairment reserve			13,191				14,505				17,325
Core deposit intangibles, net of accumulated amortization			8,803				9,235				10,551
Other assets			81,927				80,423				88,164
Total assets		$	7,500,970			$	7,329,201			$	7,137,653
Liabilities and Stockholders’ Equity
Deposits:
Non-interest bearing		$	1,063,869			$	1,098,375			$	1,026,584
Interest bearing			4,861,844				4,803,806				4,797,472
Total deposits			5,925,713				5,902,181				5,824,056
Securities sold under repurchase agreements			620,154				455,861				474,141
Accounts payable and accrued expenses			38,915				44,313				44,946
Accrued interest payable			13,178				15,241				17,585
Other borrowed funds			4,991				5,674				5,423
Long-term debt			37,502				37,513				73,353
Subordinated debentures held by subsidiary trusts			123,715				123,715				123,715
Total liabilities			6,764,168				6,584,498				6,563,219
Stockholders’ equity:
Preferred stock			50,000				50,000				50,000
Common stock			264,174				263,719				112,135
Retained earnings			413,253				408,036				397,224
Accumulated other comprehensive income, net			9,375				22,948				15,075
Total stockholders’ equity			736,802				744,703				574,434
Total liabilities and stockholders’ equity		$	7,500,970			$	7,329,201			$	7,137,653

Consolidated Statements of Income

		Three Months ended
		December 31,				September 30,				December 31,
(Unaudited, $ in thousands, except per share data)		2010				2010				2009
Interest income:
Interest and fees on loans		$	65,044			$	67,033			$	69,877
Interest and dividends on investment securities:
Taxable			9,665				10,540				11,327
Exempt from federal taxes			1,145				1,137				1,213
Interest on deposits in banks			360				252				228
Interest on federal funds sold			1				3				33
Total interest income			76,215				78,965				82,678
Interest expense:
Interest on deposits			11,202				12,973				16,587
Interest on securities sold under repurchase agreements			247				209				179
Interest on other borrowed funds			—				1				2
Interest on long-term debt			493				512				850
Interest on subordinated debentures held by subsidiary trusts			1,423				1,526				1,476
Total interest expense			13,365				15,221				19,094
Net interest income			62,850				63,744				63,584
Provision for loan losses			17,500				18,000				13,500
Net interest income after provision for loan losses			45,350				45,744				50,084
Non-interest income:
Other service charges, commissions and fees			7,421				7,821				7,124
Income from the origination and sale of loans			8,027				7,355				5,246
Service charges on deposit accounts			4,327				4,497				5,038
Wealth management revenues			3,083				3,091				2,894
Investment securities gains, net			62				66				11
Other income			2,591				2,025				1,897
Total non-interest income			25,511				24,855				22,210
Non-interest expense:
Salaries, wages and employee benefits			29,216				27,994				27,980
Occupancy, net			4,207				3,939				4,242
Furniture and equipment			3,326				3,411				3,389
FDIC insurance premiums			2,584				2,337				2,389
Outsourced technology services			2,377				2,402				2,279
Other real estate owned expense, net of income			1,541				2,608				318
Mortgage servicing rights amortization			1,146				1,221				1,224
Mortgage servicing rights impairment (recovery)			(2,999	)			1,991				(255	)
Core deposit intangibles amortization			432				437				531
Other expenses			12,993				11,670				13,055
Total non-interest expense			54,823				58,010				55,152
Income before income tax expense			16,038				12,589				17,142
Income tax expense			5,200				3,860				5,621
Net income			10,838				8,729				11,521
Preferred stock dividends			863				862				863
Net income available to common shareholders		$	9,975			$	7,867			$	10,658
Basic earnings per common share		$	0.23			$	0.18			$	0.34
Diluted earnings per common share		$	0.23			$	0.18			$	0.34

Consolidated Statements of Income

		Twelve Months ended
		December 31,				December 31,
(Unaudited, $ in thousands, except per share data)		2010				2009
Interest income:
Interest and fees on loans		$	266,472			$	279,985
Interest and dividends on investment securities:
Taxable			42,338				41,978
Exempt from federal taxes			4,621				5,298
Interest on deposits in banks			1,093				520
Interest on federal funds sold			22				253
Total interest income			314,546				328,034
Interest expense:
Interest on deposits			53,949				73,226
Interest on federal funds purchased			—				20
Interest on securities sold under repurchase agreements			879				776
Interest on other borrowed funds			3				1,347
Interest on long-term debt			2,433				3,249
Interest on subordinated debentures held by subsidiary trusts			5,843				6,280
Total interest expense			63,107				84,898
Net interest income			251,439				243,136
Provision for loan losses			66,900				45,300
Net interest income after provision for loan losses			184,539				197,836
Non-interest income:
Other service charges, commissions and fees			29,494				28,747
Income from the origination and sale of loans			22,868				30,928
Service charges on deposit accounts			18,181				20,323
Wealth management revenues			12,387				10,821
Investment securities gains, net			170				137
Other income			7,811				9,734
Total non-interest income			90,911				100,690
Non-interest expense:
Salaries, wages and employee benefits			112,667				113,569
Occupancy, net			16,251				15,898
Furniture and equipment			13,434				12,405
FDIC insurance premiums			10,044				12,130
Outsourced technology services			9,477				10,567
Other real estate owned expense, net of income			7,670				6,397
Mortgage servicing rights amortization			4,615				7,568
Mortgage servicing rights impairment (recovery)			(787	)			(7,224	)
Core deposit intangibles amortization			1,748				2,131
Other expenses			45,885				44,269
Total non-interest expense			221,004				217,710
Income before income tax expense			54,446				80,816
Income tax expense			17,090				26,953
Net income			37,356				53,863
Preferred stock dividends			3,422				3,422
Net income available to common shareholders		$	33,934			$	50,441
Basic earnings per common share		$	0.85			$	1.61
Diluted earnings per common share		$	0.85			$	1.59

Average balance sheets

		For the three months ended
		December 31, 2010												September 30, 2010												December 31, 2009
		Average								Average				Average								Average				Average								Average
(Unaudited, $ in thousands)		Balance				Interest				Rate				Balance				Interest				Rate				Balance				Interest				Rate
Interest earning assets:
Loans (1)(2)		$	4,402,141			$	65,482				5.90	%		$	4,504,657			$	67,473				5.94	%		$	4,561,237			$	70,325				6.12	%
Investment securities (2)			1,849,445				11,471				2.46				1,720,925				12,333				2.84				1,374,162				13,241				3.82
Interest bearing deposits in banks			562,277				360				0.25				392,149				252				0.25				357,974				228				0.25
Federal funds sold			1,208				1				0.33				2,299				3				0.52				42,866				33				0.31
Total interest earnings assets			6,815,071				77,314				4.50				6,620,030				80,061				4.80				6,336,239				83,827				5.25
Non-earning assets			636,062												658,680												698,022
Total assets		$	7,451,133											$	7,278,710											$	7,034,261
Interest bearing liabilities:
Demand deposits			1,183,446				878				0.29	%			1,127,006				842				0.30	%			1,103,095				755				0.27	%
Savings deposits			1,677,125				2,092				0.49				1,555,510				2,199				0.56				1,400,337				2,387				0.68
Time deposits			1,992,179				8,232				1.64				2,119,083				9,931				1.86				2,222,716				13,445				2.40
Repurchase agreements			535,543				247				0.18				464,655				209				0.18				459,029				179				0.15
Borrowings (3)			5,833				—				—				5,256				1				0.08				6,060				2				0.13
Long-term debt			37,506				493				5.21				37,658				512				5.39				76,139				850				4.43
Subordinated debentures held by by subsidiary trusts			123,715				1,423				4.56				123,715				1,526				4.89				123,715				1,476				4.73
Total interest bearing liabilities			5,555,347				13,365				0.95				5,432,883				15,220				1.11				5,391,091				19,094				1.41
Non-interest bearing deposits			1,095,947												1,046,112												1,004,191
Other non-interest bearing liabilities			53,094												59,515												65,001
Stockholders’ equity			746,745												740,200												573,978
Total liabilities and stockholders’ equity		$	7,451,133											$	7,278,710											$	7,034,261
Net FTE interest income						$	63,949											$	64,841											$	64,733
Less FTE adjustments (2)							(1,099	)											(1,097	)											(1,149	)
Net interest income from consolidated statements of income						$	62,850											$	63,744											$	63,584
Interest rate spread											3.55	%											3.69	%											3.84	%
Net FTE interest margin (4)											3.72	%											3.89	%											4.05	%