First Interstate BancSystem | research notes

First Interstate BancSystem: A Leading Financial Institution in the Western United States

First Interstate BancSystem, Inc. (NASDAQ: FIBK) is a financial holding company headquartered in Billings, Montana, providing a comprehensive range of banking and financial services to individuals, businesses, and organizations. With a rich history spanning over a century, the company has grown to become a prominent financial institution in the Western United States.

History and Expansion

First Interstate BancSystem traces its roots back to 1864 as the First National Bank of Helena, Montana. Over the years, the company has expanded its reach through acquisitions and organic growth, solidifying its position as a leading provider of financial services in the region.

Today, First Interstate BancSystem operates a network of over 900 branches and over 1,500 ATMs across 13 Western states, including Montana, Wyoming, South Dakota, Nebraska, Idaho, Washington, Oregon, California, Arizona, New Mexico, Colorado, Utah, and Nevada. The company serves a diverse customer base, ranging from individuals and small businesses to large corporations and government entities.

Financial Strength and Stability

First Interstate BancSystem has consistently maintained a strong financial position. The company boasts a robust capital base, a solid risk management framework, and a well-diversified loan portfolio. Its financial performance reflects its commitment to prudent banking practices and long-term growth.

Products and Services

First Interstate BancSystem offers a wide array of products and services to meet its customers' financial needs. These include:

• Personal banking services (e.g., checking, savings accounts, loans)
• Business banking services (e.g., commercial lending, cash management)
• Wealth management and investment services
• Mortgage lending
• International banking services

Commitment to Community

First Interstate BancSystem is actively involved in its communities, supporting a range of initiatives that foster economic development, education, and financial literacy. The company believes in giving back to the communities it serves and is committed to making a positive impact.

Customer Experience

First Interstate BancSystem prioritizes customer satisfaction. The company strives to provide exceptional service through its branches, ATMs, online banking平台, and mobile banking applications. Its goal is to make banking convenient, secure, and personalized for its customers.

Conclusion

First Interstate BancSystem is a well-respected and established financial institution that plays a vital role in the Western United States. With a strong financial foundation, a diverse product offering, and a commitment to customer service, the company is well-positioned for continued success in the years to come. Whether you're looking for personal banking, business banking, or wealth management solutions, First Interstate BancSystem is here to meet your financial needs.

Business Model of First Interstate BancSystem

First Interstate BancSystem (FIB) is a regional bank holding company headquartered in Billings, Montana. Its business model centers around providing a range of financial services to individuals, businesses, and government entities within its core markets.

FIB operates through the following segments:

• Community Banking: Provides traditional banking services such as deposit accounts, lending, and cash management to customers in its local communities.
• Commercial Banking: Offers specialized lending, advisory, and treasury management services to businesses.
• Mortgage Banking: Provides a range of mortgage products and services to homebuyers and real estate investors.
• Trust and Wealth Management: Manages assets and provides investment advisory services to high-net-worth individuals and institutions.

Advantages to Competitors

FIB has several advantages that differentiate it from its competitors:

• Strong Regional Focus: FIB's primary business is concentrated in the Western United States, where it has a deep understanding of local markets and a well-established customer base.
• Community Ties: FIB has strong ties to the communities it serves, maintaining a network of branches and supporting local businesses and organizations.
• Customer-Centric Approach: FIB emphasizes providing personalized and convenient banking experiences to its customers. This includes offering a range of digital banking services and tailored financial solutions.
• Diversified Revenue Streams: FIB generates revenue from multiple sources, including interest income on loans, fees from trust and wealth management services, and mortgage originations. This diversification reduces the risk associated with any one business line.
• Strong Financial Position: FIB maintains a solid financial foundation with a high capital ratio, a low nonperforming loan rate, and a history of consistent earnings.
• Acquisition Strategy: FIB has pursued a selective acquisition strategy to expand its market share and scale its operations in desirable markets.

By leveraging these advantages, FIB has been able to achieve strong financial performance, build a loyal customer base, and maintain a competitive position within its target markets.

Outlook of First Interstate BancSystem, Inc.

Key Financial Indicators:

• Market Capitalization: $4.3 billion (as of March 8, 2023)
• Assets: $32.9 billion (as of December 31, 2022)
• Deposits: $27.4 billion (as of December 31, 2022)
• Loans: $20.8 billion (as of December 31, 2022)
• Net Income: $378.4 million in 2022

Market Performance:

• Strong share price performance in recent years, outperforming the industry benchmark
• High correlation to interest rate fluctuations due to its significant interest-sensitive assets
• Dividend yield of around 2.7%

Loan Portfolio:

• Diversified loan portfolio with a focus on commercial real estate (36%), commercial and industrial (26%), and consumer (24%)
• Solid loan quality with low levels of non-performing loans

Deposit Base:

• Stable deposit base with a focus on non-interest-bearing and low-cost deposits
• Strong customer relationships and a competitive deposit product suite

Operating Efficiency:

• Operating efficiency ratio of 58.3% in 2022, which is below the industry average
• Ongoing efforts to enhance efficiency through automation and process improvements

Growth Strategy:

• Focus on organic growth through market share gains and loan portfolio expansion
• Strategic acquisitions to expand into new markets and strengthen its product offerings
• Investment in digital banking and other customer-facing initiatives

Regulatory Environment:

• Compliance with complex regulatory environment, including Dodd-Frank and Basel III
• Ongoing pressure to increase capital levels and enhance risk management practices

Industry Outlook:

• Rising interest rates provide tailwinds for net interest income but may also slow loan growth
• Increased competition from fintechs and other non-traditional lenders
• Technological advancements continue to reshape the industry landscape

Investment Considerations:

• Favorable financial performance and strong market position
• Exposure to interest rate fluctuations, which can impact profitability
• Potential for continued growth in a favorable industry environment
• Well-capitalized and well-managed institution with a focus on shareholder value

Overall Outlook:

First Interstate BancSystem is a well-positioned regional bank with a strong financial foundation and a clear growth strategy. Its diversified loan portfolio, stable deposit base, and ongoing efforts to improve efficiency provide a solid base for future performance. However, the company is exposed to interest rate volatility and faces competition from both traditional and non-traditional lenders.

Similar Companies to First Interstate BancSystem

1. Zions Bancorporation (https://www.zionsbancorporation.com/)

• Why Customers Like It: Zions provides a wide range of financial services, including retail banking, commercial banking, wealth management, and capital markets. It has a strong presence in Utah, Idaho, Nevada, and California.
• Pros: Strong financial performance, local focus, personalized service.
• Cons: Limited geographic reach compared to larger banks.

2. Bank of the West (https://www.bankofthewest.com/)

• Why Customers Like It: Bank of the West offers a variety of personal and business banking solutions, including checking and savings accounts, loans, and investment services. It has a large branch network in California and other western states.
• Pros: Convenience, extensive branch network, competitive rates.
• Cons: Fees can be higher than at some other banks.

3. Umpqua Holdings Corporation (https://www.umpquabank.com/)

• Why Customers Like It: Umpqua offers a unique banking experience with a focus on sustainability and community involvement. It has a strong presence in Oregon, Washington, California, and Nevada.
• Pros: Innovative products, green banking initiatives, customer-centric approach.
• Cons: Smaller bank with a more limited product offering compared to larger banks.

4. PacWest Bancorp (https://www.pacwestbancorp.com/)

• Why Customers Like It: PacWest Bancorp is a fast-growing financial institution with a focus on commercial banking and wealth management. It has a presence in California, Washington, and Oregon.
• Pros: Strong growth prospects, competitive rates, personalized service.
• Cons: Limited product offering compared to larger banks.

5. Sterling Bancorp (https://www.sterlingbancorp.com/)

• Why Customers Like It: Sterling Bancorp is a regional bank with a focus on providing financial solutions to small businesses and individuals. It has a strong presence in the Northeast and New England.
• Pros: Local expertise, tailored products, strong customer service.
• Cons: Limited geographic reach compared to larger banks.

First Interstate BancSystem

Origins:

• Founded in 1968 as Western Bancorporation
• Headquartered in Los Angeles, California

Expansion and Acquisitions:

• Rapidly expanded through acquisitions, including:
  • Citizens Bank of Oregon (1972)
  • Sun Bank of Florida (1985)
  • American Fletcher Corporation (1986)
  • First Interstate Bank of Texas (1987)

Growth and Dominance:

• Became one of the largest banking companies in the United States in the 1980s
• Controlled over 10% of deposits in California and Florida
• Offered a wide range of financial services, including:
  • Commercial banking
  • Retail banking
  • Investment banking
  • Trust services

Financial Struggles and Sale:

• Faced financial difficulties in the late 1980s due to:
  • Overexpansion
  • Poor lending practices
  • Economic downturn
• In 1996, was acquired by Wells Fargo & Company for $11.5 billion

Post-Acquisition:

• Wells Fargo integrated First Interstate's operations into its own banking system
• Many First Interstate branches were closed or rebranded as Wells Fargo
• Former First Interstate employees were offered positions within Wells Fargo

Legacy:

• First Interstate BancSystem was a significant player in the banking industry during the 1980s and 1990s
• Its acquisition by Wells Fargo helped solidify Wells Fargo's position as one of the largest banks in the United States
• The company's logo, featuring a stylized "FI," is still recognized by some former customers and banking professionals

2020

• August: First Interstate BancSystem acquires Glacier Bancorp, Inc. in a $1.8 billion transaction, expanding its presence in Montana and Wyoming.
• October: The company announces a $250 million investment in affordable housing initiatives.
• December: First Interstate BancSystem reports record earnings for the year, with net income of $703 million.

2021

• January: The company launches its digital banking platform, First Interstate Direct.
• March: First Interstate BancSystem enters into a partnership with fintech company MANTL to offer digital mortgage lending services.
• June: The company announces plans to acquire Colorado National Bankshares, Inc. in a $500 million transaction.
• October: First Interstate BancSystem completes the acquisition of Colorado National Bankshares, Inc.

2022

• February: The company launches its "Community Promise" program, pledging $100 million to support affordable housing, small businesses, and education initiatives in its markets.
• June: First Interstate BancSystem reports strong financial results for the first half of the year, with net income of $453 million.
• September: The company announces that it will increase its dividend by 10%.
• November: First Interstate BancSystem launches its "First Connect" mobile banking app, which offers a suite of digital banking services.

Recent Timelines

• December 2022: First Interstate BancSystem is named one of the "World's Best Banks" by Forbes magazine.
• January 2023: The company announces plans to open a new branch in Portland, Oregon.
• February 2023: First Interstate BancSystem reports strong financial results for the fourth quarter and full year of 2022, with net income of $1.8 billion.

First Interstate BancSystem: A Pillar of Financial Excellence

As a valued customer of First Interstate BancSystem, I am delighted to express my unwavering satisfaction with their exceptional services. From the moment I opened my account, I have been consistently impressed by their unwavering commitment to customer satisfaction.

Seamless Banking Experience

First Interstate's online and mobile banking platforms are intuitive and user-friendly, making it effortless to manage my finances from anywhere, at any time. The mobile app provides instant access to my account balance, transaction history, and bill pay features.

Exceptional Customer Service

The customer service team at First Interstate deserves the highest praise. Each representative I have interacted with has been knowledgeable, courteous, and genuinely eager to assist. They go above and beyond to ensure that my questions are answered and my needs are met.

Competitive Rates and Products

First Interstate offers a comprehensive range of financial products, including checking and savings accounts, loans, and investment options. Their rates are competitive, and their products are designed to meet the diverse financial goals of their customers.

Community Involvement

Beyond its financial services, First Interstate is deeply committed to the communities it serves. The bank actively supports local businesses, non-profit organizations, and educational initiatives. Their involvement in the community demonstrates their genuine concern for the well-being of their customers and their surroundings.

A Trusted Financial Partner

In the realm of financial institutions, trust is paramount. First Interstate BancSystem has earned my complete trust through its consistent performance, unwavering customer service, and commitment to ethical practices. I highly recommend this exceptional bank to anyone seeking a reliable and trusted financial partner.

Five-Star Recommendation

Without hesitation, I award First Interstate BancSystem a resounding five-star rating. They have consistently exceeded my expectations and have played a vital role in my financial well-being. I am confident that they will continue to provide the same level of excellence for years to come.

Embrace Financial Empowerment with First Interstate BancSystem

Are you seeking a banking experience that goes beyond mere transactions and empowers you to take control of your financial future? Look no further than First Interstate BancSystem, where innovation meets personalized banking solutions.

Your Trusted Banking Partner

With over 150 years of industry expertise, First Interstate BancSystem has established itself as a leading financial institution in the Western United States. Our vast network of branches, ATMs, and mobile banking services ensures that you have convenient access to your funds whenever and wherever you need them.

Customized Banking for Your Unique Needs

At First Interstate BancSystem, we understand that every customer is unique. That's why we offer a comprehensive range of banking products and services tailored to your specific financial goals. Whether you're starting a new business, planning for retirement, or simply managing your daily finances, our dedicated bankers will work with you to create customized solutions that maximize your financial potential.

State-of-the-Art Technology at Your Fingertips

We believe that banking should be convenient and accessible. That's why we invest heavily in state-of-the-art technology to provide our customers with seamless online and mobile banking experiences. Manage your accounts, pay bills, transfer funds, and more, all from the comfort of your own home or on the go.

Exceptional Customer Service

At First Interstate BancSystem, we prioritize our customers above all else. Our friendly and knowledgeable team is always available to assist you with any questions or concerns you may have. Whether you prefer to visit a branch, call our support line, or engage with us through our online channels, you can expect prompt and personalized service.

Join the First Interstate BancSystem Family

Embrace financial empowerment and elevate your banking experience with First Interstate BancSystem. Visit our website at https://www.firstinterstatebank.com to explore our products and services and connect with our team of experts.

Together, we can unlock your financial aspirations and pave the way for a brighter financial future.

First Interstate BancSystem, Inc. is a bank holding company headquartered in Billings, Montana. The company's main supplier (or upstream service provider) is Fiserv, Inc. Fiserv is a global provider of financial services technology solutions. The company provides a wide range of services to banks and other financial institutions, including core banking, payments, and risk management.

Fiserv website: https://www.fiserv.com/

Sure, here are the main customers (or downstream companies) of First Interstate BancSystem, Inc.:

Name: Wells Fargo & Company Website: https://www.wellsfargo.com/

Description: Wells Fargo & Company is a diversified financial services company providing banking, investment, mortgage, and consumer and commercial finance through its subsidiaries.

Wells Fargo acquired First Interstate BancSystem in 1996.

As of 2023, Wells Fargo is the third largest bank in the United States by assets and the largest bank in California.

In addition to Wells Fargo, First Interstate BancSystem also has a number of other downstream companies, including:

• First Interstate Bank (https://www.firstinterstate.com/)
• First Interstate Mortgage Company (https://www.firstinterstatemortgage.com/)
• First Interstate Trust Company (https://www.firstinterstatetrust.com/)
• First Interstate Securities Corporation (https://www.firstinterstatesecurities.com/)

These companies provide a variety of financial services to individuals and businesses, including banking, lending, investment, and trust services.

Key Revenue Streams of First Interstate BancSystem:

1. Net Interest Income

• Accrues from the difference between interest earned on loans and investments and interest paid on deposits.
• Largest revenue stream, accounting for approximately 60% of total revenue.
• Estimated annual revenue: $1.4 billion

2. Non-Interest Income

• Includes fees, commissions, and other non-interest-related revenue.
• Key components include mortgage banking, wealth management, and investment banking.
• Estimated annual revenue: $600 million

3. Loan Origination Fees

• Income generated from fees charged for originating loans, such as mortgages and commercial loans.
• Estimated annual revenue: $200 million

4. Service Charges and ATM Fees

• Revenue from charges for various banking services, such as account maintenance, check processing, and ATM transactions.
• Estimated annual revenue: $150 million

5. Card Income

• Income from fees associated with credit card and debit card transactions.
• Estimated annual revenue: $100 million

Total Estimated Annual Revenue:

Approximately $2.45 billion

Key Factors Driving Revenue Growth:

• Expansion of lending activities
• Growth in non-interest income segments, such as wealth management
• Increased adoption of digital banking products
• Acquisition of new customers
• Cost control measures

It's important to note that these estimates are based on publicly available financial data and analyst reports, and actual revenue may vary.

Key Partners of First Interstate BancSystem, Inc.

1. FIS

• Website: www.fisglobal.com
• Description: A global provider of financial technology solutions, including core banking, payments, e-commerce, and investment management software.

2. Jack Henry & Associates

• Website: www.jackhenry.com
• Description: A provider of core processing solutions for banks and credit unions, including lending, deposits, and digital banking services.

3. CoreLogic

• Website: www.corelogic.com
• Description: A provider of property and data analytics solutions for the mortgage and real estate industries.

4. Black Knight

• Website: www.blackknightinc.com
• Description: A provider of mortgage software, data, and analytics solutions for lenders and servicers.

5. Wolters Kluwer

• Website: www.wolterskluwer.com
• Description: A provider of financial information, software, and services for legal, tax, and compliance professionals.

6. LexisNexis

• Website: www.lexisnexis.com
• Description: A provider of legal, regulatory, and business information and analytics solutions.

7. Experian

• Website: www.experian.com
• Description: A provider of credit reporting, consumer demographics, and marketing services.

8. The Clearing House

• Website: www.theclearinghouse.org
• Description: A non-profit association that provides payment processing and risk management services for the financial industry.

9. Visa

• Website: www.visa.com
• Description: A global payment technology company that provides credit, debit, and prepaid cards.

10. Mastercard

• Website: www.mastercard.com
• Description: A global payment technology company that provides credit, debit, and prepaid cards.

Key Cost Structure of First Interstate BancSystem, Inc.

Personnel Expenses

• Largest cost component
• Includes salaries, wages, bonuses, and benefits for employees

Estimated Annual Cost: $2.0 - $2.5 billion

Deposit Costs

• Interest paid on customer deposits
• Driven by the level of interest rates and the amount of deposits

Estimated Annual Cost: $400 - $600 million

Data Processing Expenses

• Costs associated with maintaining and operating computer systems, software, and networks

Estimated Annual Cost: $250 - $350 million

Marketing and Advertising Expenses

• Costs incurred to promote the bank's products and services

Estimated Annual Cost: $150 - $250 million

Premises and Equipment Expenses

• Costs related to the bank's physical infrastructure, including rent, utilities, and equipment

Estimated Annual Cost: $100 - $150 million

Other Operating Expenses

• Includes various expenses not included in the above categories, such as professional fees, insurance, and legal costs

Estimated Annual Cost: $100 - $200 million

Impairment and Loss Expenses

• Costs related to loan losses and other credit impairments

Estimated Annual Cost: $150 - $300 million

Total Operating Expenses (Excluding Provision for Loan Losses)

Estimated Annual Cost: $3.2 - $4.5 billion

Provision for Loan Losses

• Estimated losses on loans and other financial assets
• Fluctuates based on economic conditions and the bank's risk profile

Estimated Annual Cost: $200 - $600 million

Total Operating Expenses (Including Provision for Loan Losses)

Estimated Annual Cost: $3.4 - $5.1 billion

First Interstate BancSystem, Inc. (FIBK)

Overview:

First Interstate BancSystem, Inc. is a regional bank holding company headquartered in Billings, Montana. It operates through its primary subsidiary, First Interstate Bank, a full-service commercial bank.

Sales Channels:

First Interstate BancSystem primarily generates revenue through the following sales channels:

1. Branch Banking:

• Estimated Annual Sales: $2.2 billion

Through a network of over 150 branches located in the western United States, First Interstate Bank offers a range of banking services, including checking and savings accounts, loans, mortgages, and investment products.

2. Online Banking:

• Estimated Annual Sales: $0.8 billion

First Interstate Bank provides online and mobile banking services, allowing customers to access their accounts, make transactions, and manage their finances remotely.

3. Commercial Banking:

• Estimated Annual Sales: $1.0 billion

First Interstate Bank serves businesses of all sizes, offering customized financial solutions, including loans, cash management services, and investment banking.

4. Wealth Management:

• Estimated Annual Sales: $0.3 billion

Through its wealth management division, First Interstate Bank provides investment advisory services and custom-tailored financial planning for individuals and families.

5. Other:

• Estimated Annual Sales: $0.2 billion

This includes revenue generated from other sources, such as insurance services, mortgage origination fees, and loan servicing fees.

Total Estimated Annual Sales:

$4.5 billion

Customer Segments of First Interstate BancSystem, Inc.

First Interstate BancSystem, Inc. (FIBK) is a regional financial services company headquartered in Billings, Montana. The company provides a range of financial products and services to individuals, businesses, and government entities in the western United States.

FIBK's customer segments include:

• Individuals: This segment includes retail customers who use FIBK's products and services for personal banking, saving, lending, and investment needs. Estimated annual sales to this segment are approximately $2.5 billion.
• Businesses: This segment includes small businesses, mid-sized companies, and large corporations that use FIBK's products and services for commercial banking, lending, treasury management, and investment needs. Estimated annual sales to this segment are approximately $1.5 billion.
• Government entities: This segment includes state, local, and federal government agencies that use FIBK's products and services for banking, lending, and investment needs. Estimated annual sales to this segment are approximately $0.5 billion.

Estimated Annual Sales

FIBK's estimated annual sales to each customer segment are as follows:

• Individuals: $2.5 billion
• Businesses: $1.5 billion
• Government entities: $0.5 billion

Total estimated annual sales: $4.5 billion

Additional Information

In addition to these primary customer segments, FIBK also provides financial products and services to a number of other groups, including non-profit organizations, educational institutions, and healthcare providers. The estimated annual sales to these groups are not disclosed by the company.

FIBK's customer segments are diverse and geographically dispersed, which helps to mitigate the company's exposure to any one particular industry or region. The company's focus on providing a wide range of financial products and services to each customer segment allows it to meet the evolving needs of its customers and drive growth.

Value Proposition of First Interstate BancSystem

Target Audience: Individuals, small businesses, and commercial clients

Unique Value Proposition:

1. Local Expertise with National Reach:

• Deep understanding of local markets with a presence in 14 Western states
• Access to a wide range of financial products and services through partnerships with Wells Fargo

2. Comprehensive Financial Solutions:

• Checking and savings accounts
• Lending options for businesses and individuals (e.g., mortgages, commercial loans)
• Investment advisory services
• Wealth management solutions

3. Customer-Centric Approach:

• Personalized financial advice and support
• Convenient banking channels (online, mobile, branches)
• Commitment to building long-term relationships

4. Strong Financial Stability:

• Member of the Federal Deposit Insurance Corporation (FDIC)
• Solid capital position and regulatory compliance

5. Community Involvement:

• Active in supporting local businesses and organizations
• Provides financial literacy programs and educational resources

Benefits to Customers:

• Access to tailored financial solutions that meet their specific needs
• Personalized guidance from experienced bankers
• Convenient banking services with flexible options
• Peace of mind with a financially stable institution
• Contribution to their local community

Competitive Advantages:

• Local expertise combined with national resources
• Comprehensive suite of financial products and services
• Strong customer relationships built on personalized advice
• Commitment to financial stability and regulatory compliance
• Differentiated value proposition in regional markets

Conclusion:

First Interstate BancSystem offers a compelling value proposition by combining local expertise with national reach, providing comprehensive financial solutions, prioritizing customer-centricity, maintaining strong financial stability, and actively engaging in community involvement. By meeting the specific needs of individuals, small businesses, and commercial clients, the company differentiates itself in regional markets and provides a trusted financial partner for growth and prosperity.

Company Overview

First Interstate BancSystem, Inc. (FIBK) is a bank holding company that operates First Interstate Bank, a commercial bank in 13 western states. The bank provides a range of financial services, including:

• Business and personal banking
• Lending
• Investments
• Wealth management

Risk Factors

Credit Risk

FIBK's primary risk is credit risk, which is the risk that borrowers may default on their loans. The company's loan portfolio is concentrated in commercial real estate (CRE) and construction lending, which are considered higher-risk sectors. FIBK's exposure to CRE and construction lending has increased in recent years, which could increase its credit risk.

Interest Rate Risk

FIBK is also exposed to interest rate risk, which is the risk that changes in interest rates could affect its earnings and financial condition. The company's net interest income is sensitive to changes in interest rates, and an increase in interest rates could reduce its earnings.

Liquidity Risk

FIBK's liquidity risk, which is the risk that it may not be able to meet its obligations when they come due, is mitigated by its diversified funding sources and strong capital position. However, the company's reliance on wholesale funding could increase its liquidity risk if market conditions deteriorate.

Operational Risk

FIBK is also exposed to operational risk, which is the risk of loss or damage resulting from inadequate or failed internal processes, systems, or controls. The company's operations are complex and involve a wide range of systems and processes, which could increase its operational risk.

Regulatory Risk

FIBK is subject to a variety of regulations, which could increase its costs and limit its ability to operate. The company's regulatory compliance costs have increased in recent years, and future changes in regulations could further increase its costs and limit its business activities.

Other Risks

In addition to the risks described above, FIBK is also exposed to other risks, including:

• Economic risk
• Competition risk
• Reputational risk

Risk Management

FIBK has implemented a comprehensive risk management program to identify and manage its risks. The company's risk management program includes:

• A risk committee that oversees the company's risk management activities
• A risk management department that develops and implements risk management policies and procedures
• A variety of risk management tools and techniques

FIBK's risk management program is designed to help the company mitigate its risks and protect its financial condition. However, no risk management program can eliminate all risks.

Conclusion

FIBK is a well-managed bank holding company with a strong financial condition. However, the company is exposed to a variety of risks, including credit risk, interest rate risk, liquidity risk, operational risk, and regulatory risk. FIBK's risk management program is designed to help the company mitigate its risks and protect its financial condition. However, no risk management program can eliminate all risks.