June 14, 1996
SUPPLEMENT TO PROSPECTUS
OF FIRST INTERSTATE BANCSYSTEM OF MONTANA, INC.,
DATED MAY 1, 1996
FIRST INTERSTATE BANCSYSTEM OF MONTANA, INC., (FIBM)
announced on May 28, 1996, that it signed an agreement
with Wells Fargo & Company to purchase all of the stock
of the First Interstate Bank of Montana, N.A., with
offices in Kalispell, Great Falls and Cut Bank, as well
as all of the stock of the First Interstate Bank of
Wyoming, N.A., with offices in Casper, Riverton, and
Laramie. The purchase price is $72 million, subject to
adjustments. Completion of the acquisition is subject
to various regulatory approvals and other conditions
which must be satisfied by each of the parties to the
agreement.
FIBM intends to fund the purchase through a combination
of debt and the issuance of preferred stock. A total
of $40 million is expected to be provided through the
issuance of FIBM preferred stock and unsecured debt,
with the remaining $32 million funded by a term loan
secured by stock of FIBM subsidiaries.
Subject to satisfaction of conditions, closing of the
acquisitions is scheduled to occur on or before
December 2, 1996. With the acquisitions, FIBM's assets
would total approximately $1.9 billion, as compared to
FIBM's 1995 year-end assets of $1.3 billion.
In connection with the proposed acquisitions, FIBM and
Wells Fargo & Company have entered into a trademark
license agreement granting FIBM and its subsidiaries an
exclusive, nontransferable license to use the "First
Interstate" name and logo in the States of Montana,
Wyoming, North Dakota, South Dakota and Nebraska. By
mutual agreement of the parties, the franchise
agreement between FIBM and Wells Fargo & Company has
been terminated.<PAGE>
