Exhibit 99

To our shareholders,

First Interstate BancSystem is pleased to announce second quarter 2008 net income to common shareholders of $17,773,000, or $2.22 per diluted share, as compared to $17,625,000, or $2.11 per diluted share, for second quarter 2007. 2008 second quarter earnings are the highest second quarter earnings reported in our history. Return on average common equity was 15.66% in second quarter 2008 compared to 16.76% in second quarter 2007, and return on aver- age assets was 1.19% versus 1.43%.

Our financial performance for 2008 includes the results of the First Western Banks acquired January 10, 2008. As of the date of acquisition, the First Western Banks had assets of $918,000,000, loans of $725,000,000 and deposits of $812,000,000. Integration of the ac- quired banks into our existing operations is proceeding as scheduled.

Quarterly Results

Second quarter 2008 net interest income increased 19% to $58,371,000, as compared to the same period in 2007. Our net interest margin ratio decreased 18 basis points to 4.27% in second quarter 2008, as compared to second quarter 2007. This decrease is due, in part, to the deployment of available funding into non-earning assets including premises, equipment, goodwill and core deposit intangible assets recorded as part of the First Western acquisition. In addition, interest free funding sources, including noninterest bearing deposits and equity, comprised a smaller percentage of our funding base during second quarter 2008, as compared to second quarter 2007, further compressing our net interest margin ratio.

During second quarter 2008, we experienced deterioration in credit quality, particularly in real estate development loans, resulting in higher levels of nonperforming and internally risk classified loans. Based on our assessment of risk inherent in our loan portfolio, we recorded provisions for loan losses of $5,321,000 during second quarter 2008, an increase of $3,446,000 compared to second quarter 2007.

Noninterest income of $25,225,000 for second quarter 2008 was $3,061,000, or 14%, higher than second quarter 2007. Approximately 61% of the increase was directly attributable to the acquired banks. The remaining improvement was primarily the result of increases of $440,000 in debit and credit card transaction fees due to higher transactions volumes, $330,000 in income from the origination and sale of residential real estate mortgage loans, $263,000 in wealth management revenues and $254,000 in insurance commissions.

Noninterest expense of $49,661,000 was $7,217,000, or 17%, higher than second quarter 2007. Approximately 87% of the increase was directly attributable to the acquired banks. The remaining increase was primarily due to inflationary wage increases and increases in group medical insurance costs aggregating $2,031,000, increases of $629,000 in equipment depreciation and maintenance expenses and increases of $509,000 in deposit insurance premiums due to expiration of our one-time deposit insurance credit. In addition, we incurred nonrecurring expenses of $450,000 related to employee recruitment and relocation and $237,000 of fraud losses during second quarter 2008. Increases in noninterest expense were substantially offset by a $4,297,000 reversal of impairment on mortgage servicing rights during second quarter 2008, as compared to a $677,000 impairment reversal during second quarter 2007.

On July 8, 2008, we paid dividends of $0.65 per common share.

Year-to-Date Results

Year-to-date net income to common shareholders of $35,080,000, or $4.36 per diluted share, increased $959,000, or 3%, from $34,121,000, or $4.08 per diluted share, during the same period in 2007.

Although year-to-date net interest income of $115,174,000 increased 18%, from the same period in 2007, our net interest margin ratio declined 17 basis points to 4.28% primarily due to the combined effects of deployment of available funding into non-earning assets in conjunction with the First Western acquisition and a decrease in interest free funding sources as a percentage of our funding base.

Financial Highlights
Three Months ended June 30,

(Unaudited)	2008		2007		% Change
(In thousands, except per share data)
OPERATING RESULTS
Net income	$	18,626	$	17,625		5.7	%
Net income to common stockholders		17,773		17,625		0.8	%
Diluted earnings per share		2.22		2.11		5.2	%
Dividends per share		0.65		0.65		—
PERIOD END BALANCES
Assets		6,363,964		4,934,826		29.0	%
Loans		4,570,655		3,494,146		30.8	%
Investment securities		1,032,942		971,929		6.3	%
Deposits		4,883,489		3,919,388		24.6	%
Stockholders’ equity		502,089		426,623		17.7	%
Common shares outstanding		7,834		8,156		-3.9	%
QUARTERLY AVERAGES
Assets		6,292,396		4,949,635		27.1	%
Loans		4,458,678		3,418,976		30.4	%
Investment securities		1,108,133		941,462		17.7	%
Deposits		4,833,976		3,892,169		24.2	%
Stockholders’ equity		506,319		421,860		20.0	%
Common shares outstanding		7,846		8,174		-4.0	%

Year-to-date provisions for loan losses increased $3,934,000 to $7,684,000 during 2008, as compared to the same period in 2007, primarily due to increases in levels of nonperforming and internally risk rated loans during second quarter 2008.

Exclusive of the results of the acquired banks, noninterest income increased $4,216,000, or 10%, and noninterest expense increased $5,254,000, or 6%, during the first half of 2008, as compared to the same period in 2007. Our 2008 performance was positively impacted by a one-time gain on the mandatory redemption of Visa stock of $1,620,000 and a one-time gain of $1,083,000 from the release of escrowed funds related to the December 2006 sale of our interest in iPay Technologies, LLC. These gains were offset by inflationary increases in salaries and benefits expenses, increases in deposit insurance premiums, higher equipment depreciation and maintenance costs and employee recruitment and relocation expenses.

We thank our dedicated team of employees, officers and directors for our continuing success. Due to their commitment to sound banking practices, we did not engage in subprime lending practices and are not experiencing the financial instability that is challenging other financial institutions around the country. Our market areas have not been as severely impacted by the mortgage crisis as many areas of the country. We are fortunate to have the sound economies of Mon-tana, Wyoming and South Dakota to further contribute to our success.

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

Condensed Consolidated Statements of Income

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Unaudited)	2008		2007		2008			2007
(In thousands, except per share data)
Total interest income	$	88,068	$	80,834	$	179,177		$	159,470
Total interest expense		29,697		31,656		64,003			62,148
Net interest income		58,371		49,178		115,174			97,322
Provision for loan losses		5,321		1,875		7,684			3,750
Net interest income after provision for loan losses		53,050		47,303		107,490			93,572
Noninterest income		25,225		22,164		51,594			44,003
Noninterest expense		49,661		42,444		102,816			85,356
Income before taxes		28,614		27,023		56,268			52,219
Income taxes		9,988		9,398		19,566			18,098
Net income		18,626		17,625		36,702			34,121
Less: preferred stock dividends		853		—		1,622			—
Net income to common stockholders	$	17,773		17,625	$	35,080			34,121
DATA PER COMMON SHARE:
Diluted EPS	$	2.22	$	2.11	$	4.36		$	4.08
Dividends		0.65		0.65		1.30			1.67
Book value to common shareholders						57.71			52.31
Tangible book value to common shareholders						28.96			45.02
Appraised value						84 75	*		89 00	**

*	Based on the latest independent appraised minority share valuation as of March 31, 2008, effective for transactions on or after May 15, 2008.
**	Based on the independent appraised minority share valuation as of March 31, 2007, effective for transactions on or after May 10, 2007.

Selected Ratios

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Unaudited)	2008			2007			2008			2007
PERFORMANCE
Return on average common equity		15.66	%		16.76	%		15.74	%		16.45	%
Return on average assets		1.19	%		1.43	%		1.19	%		1.40	%
Net interest margin, FTE		4.27	%		4.45	%		4.28	%		4.45	%
Efficiency ratio		59.41	%		59.49	%		61.65	%		60.40	%
CREDIT QUALITY (Period End)
Annualized provision for loan losses to average loans								0.36	%		0.22	%
Annualized net charge offs to average loans								0.09	%		0.05	%
Allowance for loan losses to total loans								1.59	%		1.44	%
Allowance for loan losses to non-accruing loans								102.18	%		266.35	%
Nonperforming assets to total loans & other real estate owned								2.08	%		0.88	%
CAPITAL ADEQUACY & LIQUIDITY
Leverage capital ratio								6.91	%		8.88	%
Average loans to average deposits								91.30	%		89.00	%

Condensed Consolidated Balance Sheets

	June 30,
(Unaudited)	2008		2007
(In thousands)
ASSETS
Cash and due from banks	$	213,855	$	164,153
Federal funds sold		49,101		11,849
Interest bearing deposits		1,510		10,640
Investment securities		1,032,942		971,929
Loans		4,570,655		3,494,146
Less: allowance for loan losses		72,650		50,308
Net loans		4,498,005		3,443,838
Goodwill		187,297		37,380
Premises & equipment, net		168,511		120,811
Company owned life insurance		68,261		65,811
Accrued interest receivable		42,231		34,646
Mortgage servicing rights		23,626		21,724
Core deposit intangible assets		13,963		257
Other assets		64,662		51,788
Total Assets	$	6,363,964	$	4,934,826
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	4,883,489	$	3,919,388
Federal funds purchased		108,410		2,735
Securities sold under repurchase agreements		472,371		488,483
Accrued interest payable		21,898		19,289
Accounts payable & accrued expenses		32,859		26,501
Other borrowed funds		130,288		4,696
Long - term debt		88,845		5,873
Subordinated debentures		123,715		41,238
Total Liabilities		5,861,875		4,508,203
Stockholders’ equity		502,089		426,623
Total Liabilities and Stockholders’ Equity	$	6,363,964	$	4,934,826

P.O. Box 30918   o   Billings, Montana 59116     o   (406) 255-5390

www.firstinterstatebank.com