Exhibit 99
Lyle R. Knight
President & Chief Executive Officer
406/255-5326
email: lyle.knight@fib.com
President & Chief Executive Officer
406/255-5326
email: lyle.knight@fib.com
May 15, 2009
To Our Shareholders,
Today, we received notification from our independent appraiser that the minority appraised value of
our common stock, as of March 31, 2009, is $61.00 per share. We will use this valuation in
connection with our revised stock repurchase practices previously described in my January 16, 2009
letter to all shareholders. As announced in that letter, we will receive stock redemption requests
during a two-week window period each calendar quarter, beginning two business days following the
announcement of the quarterly appraised valuation. Therefore, beginning on Tuesday, May 19, 2009
and continuing through the close of business on Monday, June 1, 2009, we will receive requests from
existing shareholders who desire to sell their shares of common stock to the Company at the price
of $61.00 per share.
If you desire to make a redemption request, please contact Amy Anderson, Assistant Corporate
Secretary, tel: (406) 255-5320, fax: (406) 255-5350, email: amy.anderson@fib.com, and notify her in
writing of your name (as reflected on your stock certificate) and the number of shares you desire
the Company to repurchase. Written requests must be received by Ms. Anderson prior to 5:00 p.m. on
Monday, June 1, 2009. Please note the foregoing applies to shares of common stock held by
shareholders outside of the Company’s 401(k) retirement plan. For shares held inside the Company’s
401(k) retirement plan, the same dates and times are applicable, but please contact Becky Achten,
ERISA Specialist, tel: (406)255-5243, fax: (406) 255-5213, e-mail: becky.achten@fib.com.
Even if you make a request, however, please keep in mind that the Company may not purchase your
shares. As noted in my January 16, 2009 and August 19, 2008 letters, the Company has no obligation
under any Shareholder Agreement or by contract, policy or otherwise to repurchase any outstanding
shares of common stock. As you know, we are subject to various limitations on the amount of common
stock we may repurchase under covenants contained in our debt instruments. Moreover, applicable
banking laws and regulations, together with prudent capital management policies and decisions, may
also limit stock redemptions.
As indicated in my prior letter, our goal is to ensure the long-term success of the Company. As we
address one of the most challenging economic and banking environments in history, our goal is to
continue building on the growth and strengths we have experienced for many years. We continue to
remain profitable as demonstrated by our recently announced 2008 and first quarter 2009 operating
results. It is also important to note we have been recognized as a “well capitalized” bank holding
company throughout our history. Our goal is to maintain this status.
After the close of the window period on June 1, 2009, our Board of Directors (or the Executive
Committee thereof acting on behalf of the Board of Directors) will make a determination regarding
the stock repurchases, if any, the Company will make. In its determination, the Board will take
into account the number of shares requested for redemption, our existing liquidity and capital
resources, prevailing market and banking industry conditions, future capital needs and various
other factors. The Company has targeted the sum of $2.5 million to be used for stock repurchases
in this current window period. As indicated above, however, this amount may change and is subject
to the discretion of the Board. We anticipate the Board will render its determination within five
business days following the close of the window period, and will then communicate to those
shareholders who made a request the details of the repurchase, if any, including the effects of any
waiver by the Company to repurchase shares under any applicable Shareholder
Agreement and any potential pro rata or other applicable provision in the event the number of
requested shares exceeds the dollar amount available for redemptions.
Please remember that neither the Board of Directors nor the Company or management makes any
recommendation to shareholders as to whether to sell or buy shares of our common stock. As has
been the case historically, shareholders must make their own decisions whether to sell or buy
stock, taking into account applicable investment, tax and other individual considerations.
As a reminder to those employees holding FIBS stock options, the quarterly two-week window period
applicable to stock repurchases will also apply if mature shares are utilized in a “cashless”
exercise. Therefore, although stock option holders may exercise their vested stock options at any
time, they will only be able to use already owned shares in a cashless exercise during the window
periods. Unlike stock redemptions, however, cashless exercises made during a window period will
not require the delivery of a request beforehand and may be affected without waiting until the end
of the window period.
If you are considering making a stock repurchase request, you should review our recent SEC filings
before making any decision. These filings may be found on our website at
www.firstinterstatebank.com/about/sec_filings.php and on the SEC’s website at www.sec.gov. In
addition, please be advised of the following recent development:
Notwithstanding difficult and uncertain economic times, we remain optimistic about our long-term
performance. We appreciate your support as shareholders.
Sincerely,
/s/ LYLE
PO Box 30918 . Billings, MT . 59116-0918 . (406)255-5390
www.firstinterstatebank.com
www.firstinterstatebank.com