EXHIBIT 99

First InterstateBancSystem
Reaching New Heights

To our shareholders,

First Interstate BancSystem reported 2004 net income of $9,718,000, or $1. luted share. Earnings are slightly less last few quarters; however, they were first quarter earnings reported in tory. In 2003, First Interstate ported first quarter earnings of $1.12 per diluted share. Return on mon equity was 14.16% in first quarter compared to 14.37% in first quarter 2003 decrease was due to increased equity earnings retention.

Our efficiency ratio and return on average have both improved since first quarter 2003. efficiency ratio was 67.25% in the most quarter, compared to 68.35% for the same last year and return on average assets 1.01%, up from 1.00% for the same period year. Improving these two ratios is a initiative of First Interstate BancSystem.

Net interest income of $36,483,000 $3,693,000 or 11% more than the same last year. Balance sheet growth was strong First quarter 2004 average loans $243,089,000, or 10% higher than first quarter last year. Average deposits increased $187,575,000 or 6% over the same time period. In addition, net interest margin also improved to 4.40%, up 7 basis points from the same period in 2003. On a linked quarter comparison, the net interest margin improved 6 basis points from fourth quarter 2003.

Non-interest income was $1,165,000 or 7% lower than first quarter 2003. Due to higher interest rates, residential real estate loan revenue decreased $2,268,000, or 57%, from first quarter 2003. In addition, in first quarter 2003 securities were sold resulting in $1,475,000 gain. In first quarter 2004, we recorded security gains of $30,000. Excluding the impact of the residential real estate revenue and the gain on sale of securities, non-interest income was up $2,548,000, or 21%.

Non-interest expense only increased $1,142,000, or 3%, over the comparable period in 2003. Salaries and benefits were $1,062,000, or 6%, higher. In first quarter 2004 we recorded $1,029,000 impairment on the mortgage servicing portfolio, down substantially from the

$2,381,000 recorded in first quarter 2003. Excluding the impact of mortgage servicing portfolio impairment, non-interest expense was up $2,494,000, or 8%.

On April 12, we paid a dividend of $.40 per common share; up from $.34 the previous quarter.

This past quarter we entered an agreement to sell our Cut Bank branch. We anticipate the transaction to close in late second or early third quarter 2004.

Thanks to our talented team of employees, directors, and officers for the achievements of this past quarter. We hold fast to our number one strategic focus to improve our efficiency. There are many opportunities already identified with more to come.

Lyle R. Knight	Terrill R. Moore
President	Chief Financial Officer
Chief Executive Officer

Financial Highlights
Three Months ended March 31

in thousands except per share data	2004		2003		% Change
(unaudited)
OPERATING RESULTS
Net income	$	9,718	$	8,837		10.0	%
Diluted earnings per share		1.22		1.12		8.9	%
Dividends per share		0.34		0.34		0.0	%
PERIOD END BALANCES
Assets		3,883,535		3,682,755		5.5	%
Loans		2,568,944		2,359,960		8.9	%
Investment Securities		807,011		783,563		3.0	%
Deposits		3,137,336		2,967,582		5.7	%
Common Stockholders’ Equity		283,971		249,555		13.8	%
Common Shares Outstanding		7,897		7,869		0.3	%
QUARTERLY AVERAGES
Assets		3,851,059		3,576,890		7.7	%
Loans		2,558,286		2,315,197		10.5	%
Investment Securities		798,187		772,643		3.3	%
Deposits		3,106,697		2,919,122		6.4	%
Common Stockholders’ Equity		276,100		249,382		10.7	%
Common Shares Outstanding		7,907		7,869		0.5	%

First Quarter 2004

First Quarter 2004

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

	Three Months Ended
	March 31
	2004		2003
Total interest income	$	46,567	$	46,684
Total interest expense		10,084		13,894
Net interest income		36,483		32,790
Provision for loan losses		2,418		2,430
Net interest income after provision for loan losses		34,065		30,360
Noninterest income		16,627		17,792
Noninterest expense		35,714		34,572
Income before taxes		14,978		13,580
Income taxes		5,260		4,743
Net income	$	9,718	$	8,837
COMMON SHARE DATA:
Diluted EPS		1.22		1.12
Dividends		.34		.34
Book value		35.96		31.71
Tangible book value		30.80		26.38
Appraised value		*		46.00

* Currently not available, $51.00 as of December 31, 2003

Selected Ratios (Unaudited)

	Three Months Ended
	March 31
	2004			2003
PERFORMANCE
Return on avg common equity		14.16	%		14.37	%
Return on avg common equity excl. market adj of securities		14.07	%		14.60	%
Return on avg assets		1.01	%		1.00	%
Net interest margin, FTE		4.40	%		4.33	%
Efficiency ratio		67.25	%		68.35	%
CREDIT QUALITY
Provision for loan losses to average loans		0.38	%		0.43	%
Net charge offs to average loans		0.21	%		0.15	%
Allowance for loan losses to loans		1.56	%		1.62	%
Allowance for loan losses to non-accruing loans		155.46	%		135.36	%
CAPITAL ADEQUACY & LIQUIDITY
Leverage capital ratio		7.30	%		6.96	%
Avg loans to avg deposits		82.35	%		79.31	%

Condensed Consolidated Balance Sheet (Unaudited)
(In thousands)

	3/31/2004		3/31/2003
ASSETS
Cash and due from banks	$	204,541	$	240,784
Federal funds sold		58,140		73,775
Interest bearing deposits		325		437
Investment securities		807,011		783,563
Loans		2,568,944		2,359,960
Less: allowance for loan losses		39,998		38,254
Net loans		2,528,946		2,321,706
Premises & equipment, net		116,314		95,023
Accrued interest receivable		19,112		20,261
Goodwill and core deposit intangibles		40,780		41,979
Other real estate owned, net		1,988		1,157
Other assets		106,378		104,070
Total Assets	$	3,883,535	$	3,682,755
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	3,137,336	$	2,967,582
Fed funds purchased		0		150
Securities sold under repurchase agreements		336,043		296,702
Other liabilities		30,689		44,367
Other borrowed funds		7,399		3,898
Long-term debt		46,859		40,501
Subordinated debentures and trust preferred securities		41,238		80,000
Total Liabilities		3,599,564		3,433,200
Common stockholders’ equity		283,971		249,555
Total Liabilities and Stockholders’ Equity	$	3,883,535	$	3,682,755

Navigating our course

First Interstate BancSystem

P.O. Box 30918 • Billings, Montana 59116 • (406) 255-5390
www.firstinterstatebank.com