First Interstate BancSystem: Giving Time, Talent and Resources to Make Our Communities Better
In this Spotlight on Community Banks article, we spoke with Kevin Riley, Chief Executive Officer of First Interstate BancSystem. Kevin discusses First Interstate’s Core Values, including its steadfast commitment to meeting its client’s needs and bettering the communities it serves.
First Interstate is a community bank headquartered in Billings, Montana. With more than 300 branches across the United States, they’re dedicated to helping these diverse communities reach their greatest potential, answering the needs of residents and businesses with practical financial solutions while supporting communities through business development and philanthropy.
First Interstate has been listed on Nasdaq since 2010 trading under the symbol “FIBK."
How has your mission evolved over the last 55 years?
Since our inception in 1968, First Interstate’s mission has always focused on meeting the needs of our clients and the communities we serve. While the methodology to meet those needs has evolved, the mission has remained constant.
We’re here to help people and their money work better together, and we do this in a variety of ways. From helping clients manage their day-to-day finances in person to offering convenient tools like online/mobile banking and small business lending, we take pride in meeting our clients where they are, when it’s convenient for them and with the right products and services to meet their financial needs as seamlessly as possible.
Learn more about First Interstate's history
How important is community involvement for a regional bank? What are some of the ways you’re working to better the communities you serve?
Community involvement is part of our DNA and critical to our success. That’s why “Commitment to Community” is one of First Interstate’s core values. Community involvement is more than just meeting the lending needs of the community, it’s giving of our time, talent and resources to make our communities better.
A bank thrives if the communities it serves are healthy. We rely on our local leaders to understand the needs of their community and determine how to best meet those needs. Each year, in addition to encouraging our colleagues to volunteer within their communities, First Interstate Bank commits 2% of our net income before taxes to charitable giving. In 2022, this totaled $7.8 million across our 14-state footprint.
As a community bank, teaching strong financial habits to people of all ages is key to fulfilling our mission. Our bankers participate in the American Banker’s Associations’ Teach Children to Save and Get Smart About Credit programs. Our collaboration with EVERFI has enabled us to expand our outreach efforts virtually, allowing us to connect with people in new and engaging ways. In 2022, we connected with over 8,300 community members through financial education outreach. We also significantly revised our overdraft practices—eliminating non-sufficient funds fees as well as reducing overdraft fees. We now provide a grace amount of $50 before any fees are assessed and do not assess overdraft charges for purchases under $5. We eliminated continuous overdraft fees and transfer fees between deposit accounts, providing free transfers from savings to checking accounts to cover overdrafts.
Additionally, we introduced a new account, Simple Banking, aimed at helping those in our communities who are underbanked gain greater financial security. Clients primarily access their account using a debit card, online banking, an ATM or visiting a branch. This new account is certified by Bank On, led by the Cities for Financial Empowerment (CFE) Fund, a nonprofit that helps connect consumers to safe and affordable bank accounts. When an account is Bank On certified, consumers know it has features they are looking for, including low or no fees, no overdraft charges, online bill pay and other basic attributes— giving them more confidence to begin or restart their banking relationship with the right tools to manage their money.
When we acquired Great Western Bank in February 2022, we recognized that with growth comes a new level of responsibility to our communities. We celebrated this milestone with a $21.5 million donation to the First Interstate BancSystem Foundation. This donation allowed the Foundation to allocate $1 million for our inaugural Believe in Local campaign, which awarded $25,000 grants to 40 employee-nominated organizations across our footprint. We recognize that poverty and hunger issues impact many vulnerable populations in the communities we serve. Of the nonprofit organizations we supported in 2022, over 55% of them tackled poverty. Our Neighbors Feeding Neighbors campaign triple-matches contributions in the third quarter to food programs and organizations combatting hunger and food insecurity. Proudly, our Neighbors Feeding Neighbors program has contributed $2.3 million to these organizations over its 13-year history.
First Interstate likes to be “hands-on” when supporting our communities. Each September, we close all First Interstate locations for half a day so our employees can volunteer in their local communities. This day of service provides much needed support for community nonprofits, fosters a culture of engagement, and reinforces a spirit of giving back for our employees. In 2022, over 3,200 employees volunteered with almost 400 organizations for a total of 12,700 volunteer hours. We also host a Coats & More drive each fall to help our neighbors in need combat the cold winter weather that encompasses most of our service area. In 2022, we collected nearly 13,000 winter items that were then donated to local organizations for distribution.
Learn more about First Interstate’s Community Involvement
What’s been the biggest surprise during your 13 years as a publicly traded company?
The pace of digital adoption on both sides of the balance sheet and the proliferation of the non-regulated credit providers has been tremendous. The ability for clients to move their money freely across digital applications has added to the price elasticity of deposit funds but has placed an even larger premium on community banking models like ours. Staying in close touch with the clients and communities we serve is more critical than ever before. In the credit markets, non-bank providers have grown to nearly three and a half times the size of the regulated banking industry, which presents some unique challenges. Non-bank credit providers have changed the economics of the consumer business, particularly in the home lending market, which has forced banks to re-think the efficiency of the distribution network.
Who is the ideal First Interstate customer? How do you build customer loyalty?
With “People First, Always” as one of our core values, our ideal client is someone who values relationships. We seek partners with whom we can work collaboratively to find the best products and services for their current personal or business life-stage.
At our core, we are a community bank, and our philosophy of relationship banking is what helps build client loyalty. We rely on Market leadership to know the best path forward when it comes to cultivating client relationships and being responsive to the needs of their communities. Day-in and day-out, we remain consistent and true to our community banking model because it connects us to our neighbors and helps us better understand and meet their needs.
Our clients often have values that align with ours.
- People First, Always – Our clients are our friends, colleagues, neighbors and family.
- Seek Greatness – We are resilient to change and are resolute in pursuing what’s best.
- Integrity – Do the right thing, period.
- Celebrate Success – We make sure there’s wind in everyone’s sails.
- Commitment to Community – We are all in on giving back—with time, money and heart.
These values guide our company and inspire our actions, and many clients choose to bank with us because of this. We build loyalty by living our values, taking exceptional care of our employees, clients and communities, which we believe results in strong financial returns for our shareholders.
Our longevity and financial stability are also key components of maintaining client loyalty. A conservative balance sheet, prudent risk management and a diversified, strong liquidity profile are the backbone of our franchise and core to our ability to serve our clients and communities in the years to come.
Connect with First Interstate:
About Kevin Riley:
Kevin P. Riley has been President and Chief Executive Officer of First Interstate BancSystem and a member of the Board of Directors since September 2015. Prior to his current role, Mr. Riley served as an Executive Vice President and the Chief Financial Officer from 2013 to 2015. Mr. Riley leads First Interstate Bank with expertise drawn from more than 36 years of experience in the banking industry. In December 2021, he completed his term representing the Federal Reserve Bank, Ninth District, serving as a member of the Federal Advisory Council. Mr. Riley currently serves on the Pacific Bankers Management Institute Board of Directors. Prior to joining the organization, Mr. Riley was an Executive Vice President and Chief Financial Officer for Berkshire Hills Bancorp in Massachusetts and he served in various executive-level positions with KeyCorp. Mr. Riley earned a Bachelor of Science degree in business administration from Northeastern University in Boston, Massachusetts.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Michael Spector
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Michael is responsible for managing relationships with Nasdaq listed companies in the South Central and South Western U.S.
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