EXHIBIT 99

Connecting with Our Shareholders

[LOGO] First Interstate BancSystem
               Fourth Quarter 2002

To our shareholders, We are pleased to announce that First Interstate BancSystem has achieved record earnings for the 14th consecutive year! The company earned $34,794,000 in 2002, a 5% increase over last year’s earnings, as adjusted for the add back of goodwill amortization. Diluted earnings per share was a record $4.44, up $.26 from last year. Return on average common equity of 14.99% in 2002 declined from 15.80% last year. Several major factors contributed to our record year. First, we experienced significant growth in both loans and deposits throughout 2002. Loans increased $114 million, or 5.4%. Deposit growth of $239 million, or 8.9%, exceeded our expectations. Due to the significant growth in our balance sheet, net interest income increased $10,806,000 over last year. Lastly, low interest rates impacted us in many ways. Fee income from residential real estate loan originations increased $2,732,000, or 42% from last year. But due to the increased likelihood of mortgage loan prepayments, we recorded $2,774,000 impairment to mortgage servicing rights, and accelerated the amortization of the remaining servicing rights, resulting in additional amortization expense of $1,648,000 in 2002. Partially offsetting the impairment of servicing rights were gains of $2,478,000 on sales of investment securities. Second, we sold the Greybull branch at a gain of $1,165,000. Partially offsetting these significant revenue improvements are two primary areas of additional expense. First, due to a softened economy and increased non accrual loans, we increased our provision for loan losses from $7,843,000 in 2001 to $9,191,000 in 2002. Second, non-interest expense increased $11,984,000, or 10%, excluding the goodwill adjustment and mortgage servicing amortization and impairment. Salaries and benefits represent 56% of this increase. Fourth Quarter Earnings in the fourth quarter of $8,897,000 were the highest quarterly earnings of the year, and were record earnings for a fourth quarter. Earnings were $702,000, or 9%, higher than adjusted fourth quarter 2001. Earnings per common share of $1.14 were up $.10 from last year. Return on average common equity was 14.72% compared to 14.66% in fourth quarter 2001. Significant variances from fourth quarter 2001 included a $970,000 increase in fee income from residential real estate loan originations and a $762,000 reduction in mortgage servicing rights impairment. However, net interest margin declined 44 basis points from the comparable quarter of 2001 due to the compression in our margin from historically low interest rates. In addition, the decline in rates led to significant prepayments of our mortgage backed investment securities. We	Financial Highlights
	Three Months ended December 31
	in thousands except per share data		2002		2001	% Change
	(unaudited)
	OPERATING RESULTS
	Net income	$	8,897	$	7,729		15.1	%
	Net income as adjusted		8,897		8,195		8.6	%
	Diluted earnings per share		1.14		0.98		16.3	%
	Diluted earnings per share as adjusted		1.14		1.04		9.6	%
	Dividends per share		0.32		0.34		-5.9	%
	PERIOD END BALANCES
	Assets		3,559,268		3,278,850		8.6	%
	Loans		2,236,550		2,122,102		5.4	%
	Investment Securities		799,292		693,178		15.3	%
	Deposits		2,911,847		2,672,747		8.9	%
	Common Stockholders’ Equity		244,154		222,069		9.9	%
	Common Shares Outstanding		7,800		7,849		-0.6	%
	QUARTERLY AVERAGES
	Assets		3,536,343		3,246,593		8.9	%
	Loans		2,217,092		2,096,277		5.8	%
	Investment Securities		751,287		685,775		9.6	%
	Deposits		2,904,065		2,631,236		10.4	%
	Common Stockholders’ Equity		239,850		221,712		8.2	%
	Common Shares Outstanding		7,803		7,857		-0.7	%
	have reinvested these funds, but at current market rates. As a result, our investment portfolio yield dropped from 5.85% in third quarter 2002, to 4.81% in fourth quarter. Based on net income in the fourth quarter, a dividend of $.34 per share was paid on January 15, 2003 to shareholders of record as of December 31, 2002. We are pleased to announce the acquisition of Silver Run Ban-corporation on January 1, 2003. Silver Run’s subsidiary bank United States National Bank of Red Lodge has loans of $36 million and deposits of $42 million. With its great team of employees remaining intact under the First Interstate brand, the bank is expected to continue as the financial leader in the Red Lodge area. Thank you to our talented team of employees, shareholders, and directors. We are proud to have achieved another record earning year and we look ahead to a future full of opportunity.
	/s/ Lyle R. Knight				/s/ Terrill R. Moore
	Lyle R. Knight				Terrill R. Moore
	President Chief Operating Officer				Chief Financial Officer

Fourth Quarter 2002 Connecting with Our Customers

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per share data)															CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) (In thousands)
		Three Months Ended December 31						Twelve Months Ended December 31								12/31/2002		12/31/2001
		2002			2001			2002			2001
															ASSETS
Total interest income		$	48,623		$	53,305		$	201,306		$	219,025			Cash and due from banks	$	234,187	$	152,609
Total interest expense			15,580			19,459			65,459			93,984			Federal funds sold		50,890		82,185
															Interest bearing deposits		25,815		58,242
Net interest income			33,043			33,846			135,847			125,041			Investment securities		799,292		693,178
Provision for loan losses			2,453			3,026			9,191			7,843			Loans		2,236,550		2,122,102
Net interest income after															Less: allowance for loan losses		36,309		34,091
	provision for loan losses		30,590			30,820			126,656			117,198
Noninterest income			16,100			14,930			60,901			52,135			Net loans		2,200,241		2,088,011
Noninterest expense			33,005			33,362			133,316			120,249			Premises & equipment, net		92,907		91,346
															Accrued interest receivable		20,702		24,804
Income before taxes			13,685			12,388			54,241			49,084			Goodwill and core deposit intangibles		37,427		38,850
Income taxes			4,788			4,659			19,447			17,901			Other real estate owned, net		458		414
															Other assets		97,349		49,211
NET INCOME		$	8,897		$	7,729		$	34,794		$	31,183
															TOTAL ASSETS	$	3,559,268	$	3,278,850
Goodwill adjustment (1)			—			466			—			1,895
NET INCOME AS ADJUSTED		$	8,897		$	8,195		$	34,794		$	33,078			LIABILITIES AND STOCKHOLDERS’ EQUITY
															Deposits	$	2,911,847	$	2,672,747
COMMON SHARE DATA:															Fed funds purchased		0		625
Diluted EPS			1.14			0.98			4.44			3.94			Securities sold under repurchase agreements		300,234		271,952
Diluted EPS, as adjusted			1.14			1.04			4.44			4.18			Other liabilities		31,418		29,031
Dividends			0.32			0.34			1.29			1.18			Other borrowed funds		7,970		6,095
Book value									31.30			28.29			Long - term debt		23,645		34,331
Tangible book value									26.50			23.34			Trust preferred securities		40,000		40,000
Appraised value									*			43.00
															TOTAL LIABILITIES		3,315,114		3,056,781
* Currently not available, $45.00 as of September 30, 2002															Common stockholders’ equity		244,154		222,069
															TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,559,268	$	3,278,850
SELECTED RATIOS (UNAUDITED)		Three Months Ended December 31						Twelve Months Ended December 31
			2002			2001			2002			2001
PERFORMANCE (1)
Return on avg common equity			14.72	%		14.66	%		14.99	%		15.80	%
Return on avg common equity excl. market adj of securities			14.93	%		15.16	%		15.27	%		16.09	%
Return on avg assets			1.00	%		1.00	%		1.04	%		1.08	%
Net interest margin, FTE			4.30	%		4.74	%		4.66	%		4.67	%
Efficiency ratio			67.16	%		67.29	%		67.76	%		66.63	%
CREDIT QUALITY (PERIOD END)
Annualized net charge offs to average loans									.31	%		.31	%
Allowance for loan losses to loans									1.62	%		1.61	%
Allowance for loan losses to non-accruing loans									126.89	%		186.56	%
CAPITAL ADEQUACY & LIQUIDITY
Leverage capital ratio									6.91	%		6.75	%
Avg loans to avg deposits									79.27	%		82.02	%
(1) adjusted for the add back of goodwill amortization net of income tax benefits