First Interstate Bank Transforms Overdraft Practices to Protect Consumers

Rhea-AI Summary

First Interstate BancSystem Inc. (NASDAQ: FIBK) announced major changes to its consumer overdraft practices to enhance customer support. Starting April 1, the company will eliminate non-sufficient funds fees and reduce overdraft fees by 67%, from $30 to $10. Additionally, it will limit daily overdraft charges to four and provide a grace amount of $50 before fees apply. Clients making purchases under $5 will incur no overdraft charges. These measures aim to give clients financial flexibility and set a positive example in the banking industry.

Positive

• Elimination of non-sufficient fund charges.
• 67% reduction in overdraft fees from $30 to $10.
• Limit of 4 daily overdraft charges.
• Grace amount of $50 before fees apply.
• No overdraft charges for purchases under $5.
• Free transfers from savings to checking for overdrafts.

Negative

• None.

Non-sufficient funds and overdraft fees eliminated or reduced to help clients meet short-term cash needs

BILLINGS, Mont.--(BUSINESS WIRE)-- First Interstate BancSystem Inc. (NASDAQ: FIBK), parent company of First Interstate Bank, announced significant changes to its consumer overdraft practices, reducing fees and giving clients flexible options to meet their personal financial needs. This includes the elimination of non-sufficient funds fees and a reduction of overdraft fees.

“At First Interstate Bank, people are — and have always been — our number-one priority,” said Kevin Riley, President and CEO of FIBK. “We know how easy it can be to make a withdrawal or purchase, only to find out too late there’s not enough in an account to cover the transaction. The enhancements to our overdraft processes will give our clients more financial flexibility, and we hope it inspires other banking organizations to follow our example.”

As of April 1, First Interstate will launch the following changes:

• Elimination of non-sufficient fund charges
• A 67% reduction in overdraft fees from $30 to $10
• Limit the maximum number of daily overdraft charges to 4 per day
• Provide a grace amount of $50 before any fees are assessed
• No overdraft charges for any purchase under $5
• The elimination of continuous overdraft and transfer fees
• Free transfers from savings to checking to cover overdrafts

First Interstate also offers a robust overdraft line of credit service which will remain in place to ensure clients have an additional layer of protection. In addition, this spring First Interstate will launch a checkless account that has no ability to be overdrawn and includes debit and online banking access.

“Our clients need a banking partner that provides support when they need it most,” said Marcy Mutch, FIBK’s CFO. “As an advocate for the clients we serve, we’re excited to live our values by reducing and removing these charges. This will amplify the positive impact First Interstate has on the places we call home.”

Giving back has been at the heart of First Interstate’s values since its inception more than 50 years ago. Each year, First Interstate donates 2% of pre-tax earnings to the communities it serves. These funds are put into action to mitigate poverty, improve workforce development, boost early childhood education, and more. First Interstate also supports its communities by offering additional philanthropic support through donations, sponsorships, and volunteerism. To learn more, visit: https://www.firstinterstatebank.com/company/community-responsibility-report/.

Category: Other Corporate News

About First Interstate BancSystem Inc.

First Interstate BancSystem Inc. is a financial services holding company headquartered in Billings, Montana. It is the parent company of First Interstate Bank, a community bank with $19.3 billion in assets as of September 30, 2021. First Interstate proudly delivers financial solutions across Idaho, Montana, Oregon, South Dakota, Washington and Wyoming. A recognized leader in community banking services, First Interstate is driven by strong values as well as a commitment to delivering a rewarding experience to its employees, strong returns to shareholders, exceptional products and services to its clients, and resources to the communities it serves. More information is available at www.FIBK.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220126005279/en/

Media Contact:

Brittany Cremer

PR/Communications Manager

406-255-5310

brittany.cremer@fib.com



Investor Contact:

John R. Stewart, CFA

Deputy Chief Financial Officer

406-255-5311

john.stewart@fib.com

Source: First Interstate BancSystem Inc.

FAQ

What changes has First Interstate BancSystem Inc. made to its overdraft fees?

First Interstate BancSystem Inc. has eliminated non-sufficient funds fees and reduced overdraft fees from $30 to $10, effective April 1.

What is the new daily overdraft charge limit for First Interstate BancSystem Inc.?

The new limit is set to a maximum of 4 overdraft charges per day.

When will the new overdraft fee policies take effect for FIBK clients?

The changes will take effect on April 1.

How much is the grace amount before overdraft fees are assessed by FIBK?

First Interstate will provide a grace amount of $50 before any fees are assessed.

Will purchases under $5 incur overdraft charges with FIBK?

No, purchases under $5 will not incur any overdraft charges.