Exhibit 99.1

First Interstate BancSystem, Inc. Reports Results for First Quarter 2011

For Immediate Release

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

First Interstate BancSystem, Inc. reports first quarter 2011 net income available to common shareholders of $8.7 million, or $0.20 per diluted share, as compared to $10.0 million, or $0.23 per diluted share, for fourth quarter 2010 and $10.3 million, or $0.32 per diluted share, for first quarter 2010. Return on average common equity and return on average assets were 5.11% and 0.52%, respectively, for the first quarter of 2011, compared to 5.68% and 0.58%, respectively, in the fourth quarter of 2010 and 7.86% and 0.64%, respectively, in the first quarter of 2010.

RESULTS SUMMARY
(Unaudited; $ in thousands, except per share data)

		Three Months Ended												Sequential				Year
		March 31,				December 31,				March 31,				Quarter				Over Year
		2011				2010				2010				% Change				% Change
Net income		$	9,506			$	10,838			$	11,130				-12.3	%			-14.6	%
Net income available to common shareholders			8,662				9,975				10,286				-13.2	%			-15.8	%
Diluted earnings per common share			0.20				0.23				0.32				-13.0	%			-37.5	%
Dividends per common share			0.1125				0.1125				0.1125				0.0	%			0.0	%
Book value per common share			16.10				16.05				15.96				0.3	%			0.9	%
Tangible book value per common share*			11.63				11.55				11.43				0.7	%			1.7	%
Net tangible book value per common share*			13.04				12.96				12.84				0.6	%			1.6	%
Return on average common equity			5.11	%			5.68	%			7.86	%
Return on average assets			0.52	%			0.58	%			0.64	%
Weighted average common shares outstanding			42,689,390				42,641,145				31,585,072
Weighted average common shares issuable upon exercise of stock options & non-vested stock awards			170,591				178,650				269,752

“I am pleased with First Interstate’s financial performance during first quarter 2011,” said Lyle R. Knight, President and Chief Executive Officer for First Interstate BancSystem, Inc. “With loan demand remaining weak, we focused on maximizing earnings by reducing our funding costs and implementing changes in our cost structures to lower expense levels. As expected, nonperforming assets increased during the first quarter as previously identified problem loans continue to migrate through the credit continuum. However, we are encouraged by the steady reduction in criticized loans we have seen the past two quarters, which indicates increasing stabilization of the loan portfolio. Given the level of reserves we have established and modest levels of other real estate owned, we believe our credit costs will remain manageable as we continue to work through our problem assets. Going forward, as loan demand increases, we expect our level of profitability to increase.”

REVENUE SUMMARY
(Unaudited; $ in thousands)

		Three Months Ended												Sequential				Year
		March 31,				December 31,				March 31,				Quarter				Over Year
		2011				2010				2010				% Change				% Change
Interest income		$	73,843			$	76,215			$	79,499				-3.1	%			-7.1	%
Interest expense			12,045				13,365				17,830				-9.9	%			-32.4	%
Net interest income			61,798				62,850				61,669				-1.7	%			0.2	%
Non-interest income:
Other service charges, commissions and fees			7,380				7,421				6,872				-0.6	%			7.4	%
Service charges on deposit accounts			4,110				4,327				4,598				-5.0	%			-10.6	%
Income from the origination and sale of loans			3,445				8,027				3,300				-57.1	%			4.4	%
Wealth management revenues			3,295				3,083				3,014				6.9	%			9.3	%
Investment securities gains, net			2				62				27				-96.8	%			-92.6	%
Other income			1,927				2,591				1,697				-25.6	%			13.6	%
Total non-interest income			20,159				25,511				19,508				-21.0	%			3.3	%
Total revenues		$	81,957			$	88,361			$	81,177				-7.2	%			1.0	%
Tax equivalent net interest margin ratio			3.73	%			3.72	%			4.00	%

Net Interest Income

Net interest income declined during first quarter 2011, as compared to fourth quarter 2010, primarily due to two less accrual days. The Company’s net interest margin ratio remained stable at 3.73% during first quarter 2011, as compared to fourth quarter 2010, primarily due to an 8 basis point reduction in funding costs, which was largely offset by lower outstanding loan balances. Compression in the net interest margin ratio during first quarter 2011, as compared to first quarter 2010, was attributable to lower yields earned on the Company’s investment and loan portfolios and lower outstanding loan balances, the effects of which were partially offset by a 46 basis point reduction in funding costs.

Non-interest Income

Increases in mortgage loan rates from historical lows in the third and fourth quarters of 2010 resulted in a decrease in refinancing activity and lower income from the origination and sale of residential mortgage loans during the first quarter of 2011. Refinancing activity accounted for approximately 56% of the Company’s residential real estate loan originations during first quarter 2011, as compared to 72% during fourth quarter 2010 and 44% during first quarter 2010.

Fluctuations in other income during first quarter 2011, as compared to fourth quarter 2010 and first quarter 2010, were primarily due to fluctuations in earnings on securities held under deferred compensation plans and insurance proceeds.

NON-INTEREST EXPENSE
(Unaudited; $ in thousands)

		Three Months Ended												Sequential				Year
		March 31,				December 31,				March 31,				Quarter				Over Year
		2011				2010				2010				% Change				% Change
Non-interest expense:
Salaries, wages and employee benefits expense		$	27,702			$	29,216			$	28,078				-5.2	%			-1.3	%
Occupancy, net			4,215				4,207				4,142				0.2	%			1.8	%
Furniture and equipment			3,220				3,326				3,341				-3.2	%			-3.6	%
FDIC insurance premiums			2,466				2,584				2,456				-4.6	%			0.4	%
Outsourced technology services			2,241				2,377				2,249				-5.7	%			-0.4	%
Other real estate owned expense, net of income			1,711				1,541				541				11.0	%			216.3	%
Mortgage servicing rights amortization			807				1,146				1,133				-29.6	%			-28.8	%
Mortgage servicing rights impairment recovery			(347	)			(2,999	)			(50	)			-88.4	%			594.0	%
Core deposit intangibles amortization			362				432				439				-16.2	%			-17.5	%
Other expenses			10,581				12,993				10,416				-18.6	%			1.6	%
Total non-interest expense		$	52,958			$	54,823			$	52,745				-3.4	%			0.4	%

Salaries, wages and employee benefits expense decreased during first quarter 2011, as compared to fourth quarter 2010 and first quarter 2010, primarily due to slight reductions in the number of full-time equivalent employees and lower incentive bonus and group medical insurance accruals. Also contributing to the decrease in salaries, wages and employee benefits expense during first quarter 2011, as compared to fourth quarter 2010, were two less salary accrual days during first quarter 2011.

Variations in net OREO expense between periods were primarily due to fluctuations in write-downs of the estimated fair value of OREO properties. First quarter 2011 net OREO expense included $315 thousand of operating expenses, $1.6 million of fair value write-downs and net gain of $156 thousand on the sale of OREO properties. Approximately 99% of the first quarter 2011 write-downs related to property in the Flathead market area.

Decreases in mortgage servicing rights amortization expense during first quarter 2011, as compared to fourth quarter 2010 and first quarter 2010, were primarily due to the sale of mortgage servicing rights during fourth quarter 2010 and changes in the estimated duration of the loans underlying the Company’s capitalized mortgage servicing rights.

Fluctuations in the fair value of mortgage servicing rights were 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 significantly during fourth quarter 2010, resulting in a $3.0 million recovery of previously recorded impairment in the fair value of mortgage servicing rights.

Other expenses decreased during first quarter 2011, as compared to fourth quarter 2010. During fourth quarter 2010, the Company recorded a $1.5 million loss on the sale of mortgage servicing rights. The remaining decrease in other expenses during first quarter 2011, as compared to fourth quarter 2010, was primarily due to fluctuations in the timing of expenses, most significantly advertising, donations and travel expenses.

ASSET QUALITY
(Unaudited; $ in thousands)

		Three Months Ended
		March 31,				December 31,				March 31,
		2011				2010				2010
Allowance for loan losses — beginning of period		$	120,480			$	120,236			$	103,030
Charge-offs			(12,339	)			(18,045	)			(9,398	)
Recoveries			1,305				789				817
Provision			15,000				17,500				11,900
Allowance for loan losses — end of period		$	124,446			$	120,480			$	106,349

		March 31,				December 31,				March 31,
		2011				2010				2010
Period end loans		$	4,263,764			$	4,367,909			$	4,481,019
Average loans			4,303,575				4,402,141				4,502,713
Non-performing loans:
Nonaccrual loans			212,394				195,342				122,341
Accruing loans past due 90 days or more			4,140				1,852				3,041
Restructured loans			33,344				13,490				7,660
Total non-performing loans			249,878				210,684				133,042
Other real estate owned			31,995				33,632				43,980
Total non-performing assets		$	281,873			$	244,316			$	177,022
Net charge-offs to average loans (annualized)			1.04	%			1.56	%			0.77	%
Provision for loan losses to average loans (annualized)			1.41	%			1.58	%			1.07	%
Allowance for loan losses to period end loans			2.92	%			2.76	%			2.37	%
Allowance for loan losses to total non-performing loans			49.80	%			57.19	%			79.94	%
Non-performing loans to period end loans			5.86	%			4.82	%			2.97	%
Non-performing assets to period end loans and other real estate owned			6.56	%			5.55	%			3.91	%
Non-performing assets to total assets			3.79	%			3.26	%			2.45	%

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 54% of the Company’s non-performing assets as of March 31, 2011, versus only 20% of the Company’s total loans as of the same date.

As of March 31, 2011, total non-performing loans included $216 million of real estate loans, of which $99 million were construction loans and $86 million were commercial real estate loans. Non-performing construction loans as of March 31, 2011 were comprised of land acquisition and development loans of $54 million, residential construction loans of $20 million and commercial construction loans of $25 million.

The most significant increases in non-performing loans during first quarter 2011, as compared to fourth quarter 2010, occurred in nonaccrual and restructured loans. Approximately $25 million of the increase in nonaccrual loans during first quarter 2011, as compared to fourth quarter 2010, was related to the loans of one land development, one commercial construction and two commercial real estate borrowers. These additions were partially offset by a $5 million pay-off of the loans of one commercial real estate borrower and a charge-off of $6 million related to the loans of one commercial borrower. As of March 31, 2011, approximately 71% of the Company’s nonaccrual loans were current with regard to principal payments.

Approximately 67% of the increase in restructured loans during first quarter 2011, as compared to fourth quarter 2010, was due to the loans of one consumer real estate and one commercial real estate borrower.

During first quarter 2011, the Company recorded additions to OREO of $3 million, wrote down the fair value of OREO properties by $1.6 million and sold OREO with a book value of $3 million.

Provision for loan losses reflects management’s estimation of the effect of current economic conditions on the Company’s loan portfolio. Specific loan reserves accounted for approximately 83% of the first quarter 2011 provision. 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 2009.

CREDIT QUALITY TRENDS
(Unaudited; $ in thousands)

		Provisions								Allowance				Loans
		for				Net				for				30 - 89 Days				Non-Performing				Non-Performing
		Loan Losses				Charge-offs				Loan Losses				Past Due				Loans				Assets
Q1 2009		$	9,600			$	4,693			$	92,223			$	98,980			$	103,653			$	122,300
Q2 2009			11,700				5,528				98,395				88,632				135,484				167,273
Q3 2009			10,500				7,147				101,748				91,956				125,083				156,958
Q4 2009			13,500				12,218				103,030				63,878				124,678				163,078
Q1 2010			11,900				8,581				106,349				62,675				133,042				177,022
Q2 2010			19,500				11,521				114,328				99,334				158,113				200,451
Q3 2010			18,000				12,092				120,236				47,966				202,008				237,304
Q4 2010			17,500				17,256				120,480				57,011				210,684				244,312
Q1 2011			15,000				11,034				124,446				68,021				249,878				281,873

Following is a summary of the Company’s criticized loans since the start of 2009.

CRITICIZED LOANS
(Unaudited; $ in thousands)

		Other Assets
		Especially
		Mentioned				Substandard				Doubtful				Total
Q1 2009		$	163,402			$	231,861			$	40,356			$	435,619
Q2 2009			230,833				242,751				48,326				521,910
Q3 2009			239,320				271,487				60,725				571,532
Q4 2009			279,294				271,324				69,603				620,221
Q1 2010			312,441				311,866				64,113				688,420
Q2 2010			319,130				337,758				92,249				749,137
Q3 2010			340,075				340,973				116,003				797,051
Q4 2010			305,925				303,653				133,353				742,931
Q1 2011			293,899				299,072				135,862				728,833

ASSETS
(Unaudited; $ in thousands)

														Sequential				Year
		March 31,				December 31,				March 31,				Quarter				Over Year
		2011				2010				2010				% Change				% Change
Cash and cash equivalents		$	680,321			$	685,618			$	674,620				-0.8	%			0.8	%
Investment securities			1,987,378				1,933,403				1,523,454				2.8	%			30.5	%
Loans			4,263,764				4,367,909				4,481,019				-2.4	%			-4.8	%
Less allowance for loan losses			124,446				120,480				106,349				3.3	%			17.0	%
Net loans			4,139,318				4,247,429				4,374,670				-2.5	%			-5.4	%
Other assets			622,109				634,520				642,896				-2.0	%			-3.2	%
Total assets		$	7,429,126			$	7,500,970			$	7,215,640				-1.0	%			3.0	%

The Company continued to invest excess liquidity into investment securities during first quarter 2011. The duration of the Company’s investment securities portfolio increased to an estimated 2.6 years as of March 31, 2011, from 2.5 years as of December 31, 2010.

LOANS
(Unaudited; $ in thousands)

														Sequential				Year
		March 31,				December 31,				March 31,				Quarter				Over Year
		2011				2010				2010				% Change				% Change
Real estate loans:
Commercial		$	1,553,750			$	1,565,665			$	1,590,515				-0.8	%			-2.3	%
Construction:
Land acquisition & development			319,573				329,720				383,737				-3.1	%			-16.7	%
Residential			78,572				99,196				124,552				-20.8	%			-36.9	%
Commercial			95,623				98,542				87,386				-3.0	%			9.4	%
Total construction loans			493,768				527,458				595,675				-6.4	%			-17.1	%
Residential			561,420				549,604				537,474				2.1	%			4.5	%
Agriculture			181,513				182,794				193,001				-0.7	%			-6.0	%
Mortgage loans originated for sale			20,992				46,408				28,367				-54.8	%			-26.0	%
Total real estate loans			2,811,443				2,871,929				2,945,032				-2.1	%			-4.5	%
Consumer:
Indirect consumer loans			411,908				423,552				418,039				-2.7	%			-1.5	%
Other consumer loans			155,100				162,137				201,236				-4.3	%			-22.9	%
Credit card loans			58,075				60,891				55,839				-4.6	%			4.0	%
Total consumer loans			625,083				646,580				675,114				-3.3	%			-7.4	%
Commercial			703,837				730,471				729,309				-3.6	%			-3.5	%
Agricultural			121,571				116,546				127,639				4.3	%			-4.8	%
Other loans, including overdrafts			1,830				2,383				3,925				-23.2	%			-53.4	%
Total loans		$	4,263,764			$	4,367,909			$	4,481,019				-2.4	%			-4.8	%

Total loans decreased during first quarter 2011, as compared to fourth quarter 2010 and first quarter 2010, with the most significant decreases occurring in residential construction loans, mortgage loans originated for sale and commercial loans. Management attributes these decreases to a general decline in new home construction in the Company’s market areas, particularly in markets 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. Decreases in outstanding loan balances in the Flathead, Gallatin Valley and Jackson market areas accounted for approximately 55% of the decrease in total loans from December 31, 2010 to March 31, 2011. In addition, decreases in outstanding balances of mortgage loans held for sale accounted for approximately 24% of the decrease in total loans from December 31, 2010 to March 31, 2011.

LIABILITIES
(Unaudited; $ in thousands)

														Sequential				Year
		March 31,				December 31,				March 31,				Quarter				Over Year
		2011				2010				2010				% Change				% Change
Deposits		$	5,931,184			$	5,925,713			$	5,788,382				0.1	%			2.5	%
Securities sold under repurchase agreements			536,955				620,154				461,559				-13.4	%			16.3	%
Other borrowed funds			5,522				4,991				5,845				10.6	%			-5.5	%
Long-term debt			37,491				37,502				39,034				0.0	%			-4.0	%
Subordinated debentures held by subsidiary trusts			123,715				123,715				123,715				0.0	%			0.0	%
Accrued interest payable			12,162				13,178				18,770				-7.7	%			-35.2	%
Accounts payable and accrued expenses			40,400				38,915				45,768				3.8	%			-11.7	%
Total liabilities		$	6,687,429			$	6,764,168			$	6,483,073				-1.1	%			3.2	%

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.

DEPOSITS
(Unaudited; $ in thousands)

														Sequential				Year
		March 31,				December 31,				March 31,				Quarter				Over Year
		2011				2010				2010				% Change				% Change
Non-interest bearing demand		$	1,110,940			$	1,063,869			$	999,827				4.4	%			11.1	%
Interest bearing:
Demand			1,259,105				1,218,078				1,098,196				3.4	%			14.7	%
Savings			1,742,958				1,718,521				1,439,886				1.4	%			21.0	%
Time, $100 and over			825,585				908,044				1,005,645				-9.1	%			-17.9	%
Time, other			992,596				1,017,201				1,244,828				-2.4	%			-20.3	%
Total interest bearing			4,820,244				4,861,844				4,788,555				-0.9	%			0.7	%
Total deposits		$	5,931,184			$	5,925,713			$	5,788,382				0.1	%			2.5	%

Increases in deposits were solely the result of organic growth. During 2011, the Company continued to experience a 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.

STOCKHOLDERS’ EQUITY
(Unaudited, $ in thousands, except per share data)

														Sequential				Year
		March 31,				December 31,				March 31,				Quarter				Over Year
		2011				2010				2010				% Change				% Change
Preferred stockholders’ equity		$	50,000			$	50,000			$	50,000				0.0	%			0.0	%
Common stockholders’ equity			682,049				677,427				666,357				0.7	%			2.4	%
Accumulated other comprehensive income, net			9,648				9,375				16,210				2.9	%			-40.5	%
Total stockholders’ equity		$	741,697			$	736,802			$	732,567				0.7	%			1.2	%
Book value per common share		$	16.10			$	16.05			$	15.96				0.3	%			0.9	%
Tangible book value per common share*		$	11.63			$	11.55			$	11.43				0.7	%			1.7	%
Net tangible book value per common share *		$	13.04			$	12.96			$	12.84				0.6	%			1.6	%

On March 24, 2011, the Company declared a quarterly dividend to common shareholders of $0.1125 per share. This dividend was paid on April 18, 2011 to shareholders of record as of April 4, 2011.

CAPITAL RATIOS
(Unaudited)

		March 31,				December 31,				March 31,
		2011				2010				2010
Tangible common stockholders’ equity to tangible assets*			6.90	%			6.76	%			6.96	%
Net tangible common stockholders’ equity to tangible assets*			7.74	%			7.59	%			7.82	%
Tier 1 common capital to total risk weighted assets			10.40	%			10.12	%			9.67	%
Leverage ratio			9.34	%**			9.27	%			9.58	%
Tier 1 risk-based capital			13.85	%**			13.53	%			13.04	%
Total risk-based capital			15.83	%**			15.50	%			15.00	%

As of March 31, 2011, the Company had capital levels that, in all cases, exceeded the “well capitalized” requirements under all regulatory capital guidelines.

First Quarter 2011 Conference Call for Investors

First Interstate BancSystem, Inc. will host a conference call to discuss first quarter 2011 results at 11:00 a.m. Eastern Time (9:00 a.m. MDT) on Tuesday, April 26, 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. MDT) on April 26, 2011 through May 27, 2011 by dialing 1-877 -344-7529 (using conference ID 449781). 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 decreased levels of criticized loans, stabilization of the loan portfolio, the Company’s level of allowance for loan losses, manageability of credit costs and levels of profitability. 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;

	•		adverse economic conditions affecting Montana, Wyoming and western South Dakota;
	•		governmental regulation and changes in regulatory, tax and accounting rules and interpretations;
	•		sweeping changes in regulation of financial institutions due to passage of the Dodd-Frank Act;
	•		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;
	•		reliance on external vendors;
	•		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 III capital standards and forthcoming new capital rules proposed for U.S. banks;
	•		inability of our bank subsidiary to pay dividends;
	•		change in dividend policy;
	•		lack of public market for our Class A common stock;
	•		volatility of Class A common stock;
	•		voting control of Class B stockholders;
	•		decline in market price of Class A common stock;
	•		dilution as a result of future equity issuances;
	•		uninsured nature of any investment in Class A common stock;
	•		anti-takeover provisions;
	•		controlled company status; and
	•		subordination of common stock to Company debt.

A more detailed discussion of each of the foregoing risks is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, filed February 28, 2011. 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 Annual Report on Form 10-K for the year ended December 31, 2010.

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
(Unaudited, $ in thousands)

		March 31,				December 31,				March 31,
		2011				2010				2010
Assets
Cash and due from banks		$	120,814			$	107,035			$	142,775
Federal funds sold			3,108				2,114				5,354
Interest bearing deposits in banks			556,399				576,469				526,491
Total cash and cash equivalents			680,321				685,618				674,620
Investment securities:
Available-for-sale			1,841,281				1,786,335				1,393,664
Held-to-maturity (estimated fair values of $147,401, $146,508 and $131,613 as of March 31, 2011, December 31, 2010 and March 31, 2010, respectively)			146,097				147,068				129,790
Total investment securities			1,987,378				1,933,403				1,523,454
Loans			4,263,764				4,367,909				4,481,019
Less allowance for loan losses			124,446				120,480				106,349
Net loans			4,139,318				4,247,429				4,374,670
Premises and equipment, net of accumulated depreciation			185,702				188,138				196,596
Goodwill			183,673				183,673				183,673
Company-owned life insurance			73,545				73,056				71,874
Accrued interest receivable			32,380				33,628				36,480
Other real estate owned, net of write-downs			31,995				33,632				43,980
Deferred tax asset			19,112				18,472				—
Mortgage servicing rights, net of accumulated amortization and impairment reserve			13,284				13,191				16,836
Core deposit intangibles, net of accumulated amortization			8,441				8,803				10,112
Other assets			73,977				81,927				83,345
Total assets		$	7,429,126			$	7,500,970			$	7,215,640
Liabilities and Stockholders’ Equity
Deposits:
Non-interest bearing		$	1,110,940			$	1,063,869			$	999,827
Interest bearing			4,820,244				4,861,844				4,788,555
Total deposits			5,931,184				5,925,713				5,788,382
Securities sold under repurchase agreements			536,955				620,154				461,559
Accounts payable and accrued expenses			40,400				38,915				45,768
Accrued interest payable			12,162				13,178				18,770
Other borrowed funds			5,522				4,991				5,845
Long-term debt			37,491				37,502				39,034
Subordinated debentures held by subsidiary trusts			123,715				123,715				123,715
Total liabilities			6,687,429				6,764,168				6,483,073
Stockholders’ equity:
Preferred stock			50,000				50,000				50,000
Common stock			264,932				264,174				262,366
Retained earnings			417,117				413,253				403,991
Accumulated other comprehensive income, net			9,648				9,375				16,210
Total stockholders’ equity			741,697				736,802				732,567
Total liabilities and stockholders’ equity		$	7,429,126			$	7,500,970			$	7,215,640

Consolidated Statements of Income
(Unaudited, $ in thousands, except per share data)

		Three Months ended
		March 31,				December 31,				March 31,
		2011				2010				2010
Interest income:
Interest and fees on loans		$	62,391			$	65,044			$	66,894
Interest and dividends on investment securities:
Taxable			9,911				9,665				11,202
Exempt from federal taxes			1,171				1,145				1,166
Interest on deposits in banks			367				360				224
Interest on federal funds sold			3				1				13
Total interest income			73,843				76,215				79,499
Interest expense:
Interest on deposits			9,871				11,202				15,278
Interest on securities sold under repurchase agreements			237				247				194
Interest on other borrowed funds			—				—				1
Interest on long-term debt			489				493				919
Interest on subordinated debentures held by subsidiary trusts			1,448				1,423				1,438
Total interest expense			12,045				13,365				17,830
Net interest income			61,798				62,850				61,669
Provision for loan losses			15,000				17,500				11,900
Net interest income after provision for loan losses			46,798				45,350				49,769
Non-interest income:
Other service charges, commissions and fees			7,380				7,421				6,872
Service charges on deposit accounts			4,110				4,327				4,598
Income from the origination and sale of loans			3,445				8,027				3,300
Wealth management revenues			3,295				3,083				3,014
Investment securities gains, net			2				62				27
Other income			1,927				2,591				1,697
Total non-interest income			20,159				25,511				19,508
Non-interest expense:
Salaries, wages and employee benefits			27,702				29,216				28,078
Occupancy, net			4,215				4,207				4,142
Furniture and equipment			3,220				3,326				3,341
FDIC insurance premiums			2,466				2,584				2,456
Outsourced technology services			2,241				2,377				2,249
Other real estate owned expense, net of income			1,711				1,541				541
Mortgage servicing rights amortization			807				1,146				1,133
Mortgage servicing rights impairment recovery			(347	)			(2,999	)			(50	)
Core deposit intangibles amortization			362				432				439
Other expenses			10,581				12,993				10,416
Total non-interest expense			52,958				54,823				52,745
Income before income tax expense			13,999				16,038				16,532
Income tax expense			4,493				5,200				5,402
Net income			9,506				10,838				11,130
Preferred stock dividends			844				863				844
Net income available to common shareholders		$	8,662			$	9,975			$	10,286
Basic earnings per common share		$	0.20			$	0.23			$	0.33
Diluted earnings per common share		$	0.20			$	0.23			$	0.32

Average Balance Sheets

(Unaudited, $ in thousands)

		For the three months ended
		March 31, 2011												December 31, 2010												March 31, 2010
		Average								Average				Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate				Balance				Interest				Rate
Interest earning assets:
Loans (1)(2)		$	4,303,575			$	62,836				5.92	%		$	4,402,141			$	65,482				5.90	%		$	4,502,713			$	67,360				6.07	%
Investment securities (2)			1,948,422				11,758				2.45				1,849,445				11,471				2.46				1,492,276				13,042				3.54
Interest bearing deposits in banks			587,804				367				0.25				562,277				360				0.25				354,096				224				0.26
Federal funds sold			2,242				3				0.54				1,208				1				0.33				16,851				13				0.31
Total interest earnings assets			6,842,043				74,964				4.44				6,815,071				77,314				4.50				6,365,936				80,639				5.14
Non-earning assets			622,539												636,062												687,663
Total assets		$	7,464,582											$	7,451,133											$	7,053,599
Interest bearing liabilities:
Demand deposits		$	1,249,283			$	834				0.27			$	1,183,446			$	878				0.29			$	1,112,950			$	839				0.31
Savings deposits			1,744,747				2,000				0.46				1,677,125				2,092				0.49				1,421,981				2,316				0.66
Time deposits			1,874,515				7,037				1.52				1,992,179				8,232				1.64				2,258,579				12,123				2.18
Repurchase agreements			569,881				237				0.17				535,543				247				0.18				454,687				194				0.17
Other borrowed funds			5,695				—				—				5,833				—				—				6,469				1				0.06
Long-term debt			37,496				489				5.29				37,506				493				5.21				71,285				919				5.23
Subordinated debentures held by by subsidiary trusts			123,715				1,448				4.75				123,715				1,423				4.56				123,715				1,438				4.71
Total interest bearing liabilities			5,605,332				12,045				0.87				5,555,347				13,365				0.95				5,449,666				17,830				1.33
Non-interest bearing deposits			1,070,744												1,095,947												959,369
Other non-interest bearing liabilities			51,013												53,094												63,528
Stockholders’ equity			737,493												746,745												581,036
Total liabilities and stockholders’ equity		$	7,464,582											$	7,451,133											$	7,053,599
Net FTE interest income						$	62,919											$	63,949											$	62,809
Less FTE adjustments (2)							(1,121	)											(1,099	)											(1,140	)
Net interest income from consolidated statements of income						$	61,798											$	62,850											$	61,669
Interest rate spread											3.57	%											3.55	%											3.81	%
Net FTE interest margin (3)											3.73	%											3.72	%											4.00	%

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principals in the United States of America, or GAAP, this release contains the following non-GAAP financial measures that management uses to evaluate capital adequacy: (i) tangible book value per common share; (ii) net tangible book value per common share; (iii) tangible common stockholders’ equity to tangible assets; (iv) net tangible common stockholders’ equity to tangible assets; and (v) tangible assets.

For purposes of computing tangible book value per common share, tangible book value equals common stockholders’ equity less goodwill and other intangible assets (except mortgage servicing rights). Tangible book value per common share is calculated as tangible common stockholders’ equity divided by shares of common stock outstanding.

For purposes of computing net tangible book value per common share, net tangible book value equals common stockholders’ equity less goodwill (adjusted for associated deferred tax liability) and other intangible assets (except mortgage servicing rights). Net tangible book value per common share is calculated as net tangible common stockholders’ equity divided by shares of common stock outstanding. The Company’s goodwill as of March 31, 2011 was $184 million, of which approximately $159 million is deductible for income tax purposes over an original period of 15 years. The calculation of net tangible book value takes into account the full amount of tax benefit of approximately $60 million associated with deductible goodwill assuming the Company will continue to have income sufficient to allow it to recognize this benefit in future periods.

For purposes of computing tangible common stockholders’ equity to tangible assets, tangible assets equals total assets less goodwill and other intangible assets (except mortgage servicing rights). Tangible common stockholders’ equity to tangible assets is calculated as tangible common stockholders’ equity divided by tangible assets.

For purposes of computing net tangible common stockholders’ equity to tangible assets, net tangible common stockholders’ equity equals common stockholders’ equity less goodwill (adjusted for associated deferred tax liability) and other intangible assets (except mortgage servicing rights). Net tangible common stockholders’ equity to tangible assets is calculated as net tangible common stockholders’ equity divided by tangible assets.

Management believes that these non-GAAP financial measures are valuable indicators of a financial institution’s capital strength since they eliminate intangible assets from stockholders’ equity and retain the effect of unrealized losses on securities and other components of accumulated other comprehensive income (loss) in stockholders’ equity. Management also believes that such financial measures, which are intended to complement the capital ratios defined by banking regulators, are useful to investors in evaluating the Company’s performance due to the importance that analysts place on these ratios and also allow investors to compare certain aspects of our capitalization to other companies. These non-GAAP financial measures, however, may not be comparable to similarly titled measures reported by other companies because other companies may not calculate these non-GAAP measures in the same manner. As a result, the usefulness of these measures to investors may be limited, and they should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP.

The following table reconciles the above described non-GAAP financial measures to their most directly comparable GAAP financial measures as of the dates indicated.

NON-GAAP FINANCIAL MEASURES
(Unaudited; $ in thousands except share and per share data)

		March 31,				December 31,				March 31,
		2011				2010				2010
Total stockholders’ equity (GAAP)		$	741,697			$	736,802			$	732,567
Less goodwill and other intangible assets (excluding mortgage servicing rights)			192,155				192,518				193,832
Less preferred stock			50,000				50,000				50,000
Tangible common stockholders’ equity (Non-GAAP)		$	499,542			$	494,284			$	488,735
Add deferred tax liability for deductible goodwill			60,499				60,499				60,499
Net tangible common stockholders’ equity (Non-GAAP)		$	560,041			$	554,783			$	549,234
Common shares outstanding			42,961,253				42,800,694				42,776,940
Book value per common share		$	16.10			$	16.05			$	15.96
Tangible book value per common share		$	11.63			$	11.55			$	11.43
Net tangible book value per common share		$	13.04			$	12.96			$	12.84
Total assets (GAAP)		$	7,429,126			$	7,500,970			$	7,215,640
Less goodwill and other intangible assets (excluding mortgage servicing rights)			192,155				192,518				193,832
Tangible assets (Non-GAAP)		$	7,236,971			$	7,308,452			$	7,021,808
Tangible common stockholders’ equity to tangible assets (Non-GAAP)			6.90	%			6.76	%			6.96	%
Net tangible common stockholders’ equity to tangible assets (Non-GAAP)			7.74	%			7.59	%			7.82	%