Trusted Banking Since 1910 | FIBT

A NOTE FROM THE CEO

Recent events have caused many to question the stability of their financial institution. Rest assured; First International Bank & Trust (FIBT) is as strong as ever. We are well-diversified, well-capitalized and maintain strong earnings year over year. Here are a few highlights as of year-end 2022 as well as our annual Statement of Condition.

• 85% of FIBT’s deposits are covered by FDIC insurance.

• FIBT’s cash and investment portfolio was $691 million, which represents 14% of our total assets. The primary purpose of the investment portfolio is to provide liquidity, with a secondary focus on income generation.

• Our investment portfolio is welldiversified with 50% in high-quality state and municipal securities, 40% in highquality mortgage-backed securities, and the remaining 10% primarily in other

U.S. Government and federal agency securities.

• The effective duration – the measure of duration taking into account the fact that expected cash flows will fluctuate as interest rates change - of our investment portfolio is just 4.86 years; placing FIBT’s investment risk relatively low.

• In addition to on-balance-sheet liquidity, the bank has access to over $1 billion in other wholesale funding.

• 82% of FIBT’s deposits are considered “core” deposits. Core deposits represent a stable source of funding, are varied in nature, and range from household checking accounts to business operating accounts.

• Not only is our investment portfolio welldiversified, but our deposit and asset base is well-diversified geographically; spanning from rural North Dakota, to

Minneapolis/St. Paul and the Phoenix Metro area.

• Our Executive Team, along with our Assets and Liability Committee, diligently reviews interest rate risk with the intent of protecting ourselves as well as our customers from adverse economic conditions.

On behalf of myself, my family, our Board of Directors, and our employees, we are not only committed to our customers and our communities; we’re committed to sound, prudent banking that stands the test of time.

STEPHEN L. STENEHJEM CHAIRMAN & CEO

STATEMENT OF CONDITION

YEAR-END TOTAL ASSETS

$2,463,283,849

$2,262,002,873

NEVER A LOSS OF A DEPOSITOR’S DOLLAR

BANK WITH CONFIDENCE

First International Bank & Trust was the only bank in McKenzie County North Dakota to survive the Great Depression. In fact, for much of our existence, our slogan was “Never a Loss of a Depositor’s Dollar.” During the 1930s, when other banks were forced to liquidate loans, or in many cases, fail, our bank returned every dollar requested. We were able to do so because we made sound lending decisions, and prudent, responsible choices to protect our customers and our communities. Our bankers bring the same line of thinking to the table today. We promise to never jeopardize the confidence you instill in us to keep your money, property, and personal information safe.

As a family-owned, independent community bank, FIBT is FDICinsured. To date no one has ever lost a dime of FDIC-insured deposits up to $250,000. If you have questions about the need for additional insurance coverage, we are ready and prepared to assist you with services that can boost your coverage if or when the need arises. FIBT partners with IntraFi®, a full-service reciprocal deposit provider, allowing customers to make deposits greater than $250,000 eligible for FDIC Insurance while still maintaining access to their funds. Funds placed through IntraFi’s® ICS® or CDARS® solutions are not subject to floating net asset values, liquidity fees, or money market mutual fund liquidity gates, thus market volatility will not negatively affect your principal. If you have questions about your coverage or would like to learn more about these solutions, our team of experts is here to advise.

STRONG FOUNDATION

Throughout the past 112 years in business, we’ve learned many valuable lessons. The economy has bloomed, boomed, crashed, and cycled time and time again. Technology has evolved and changed our day-to-day operations. With these cycles and changes, we’ve adopted new ways of doing things and remained nimble in our approach to lending, and the way we do business. FIBT takes pride in our relationship-based business model and the way we build long-term trust with our customers. We remain well-capitalized and well-positioned to serve our communities for generations to come.

Part of our success and longevity comes from diversifying our assets through specialized divisions such as Kotapay or MineralTracker ® which protects us from the ebbs and flows of market conditions and demands. In 2023, Kotapay, our electronic payments division, celebrates its 30th year of providing fast, accurate electronic transaction services and continues to serve more than 107,000 companies nationwide. Our commitment is to provide secure and efficient processing solutions for you and your clients.

FAMILY-OWNED FOR OVER A CENTURY

What is now-known as First International Bank & Trust, was founded by Norwegian-American brothers Odin and Gerhard Stenehjem after an agricultural boom in western North Dakota in the early 1900s. Gerhard became the bank’s first president in 1917 and since then, leadership has passed through Odin Stenehjem, Leland Stenehjem, and our current Chairman and CEO Stephen L. Stenehjem.

Today, both Peter Stenehjem (President) and Erik Stenehjem (Chief Credit Administration Officer) are fourth-generation community bankers leading the bank with the same expert leadership and passion for serving their community as their father and the Stenehjems before them. Long-lasting, quality relationships built between our clients and our bankers are the foundation we’ve built upon for more than a century. As we continue to grow, we remain committed to that personal touch. We place tremendous importance on remaining local, caring for our customers, and staying involved in our communities.

Stephen L. Stenehjem Chairman & CEO Watford City, ND sstenehjem@fibt.com

President Fargo, ND pstenehjem@fibt.com

Erik Stenehjem Chief Credit Administration Officer Phoenix, AZ estenehjem@fibt.com

S. Peter Stenehjem

PROUD OF THE PAST. POISED FOR THE FUTURE.

HUMBLE BEGINNINGS

First International Bank & Trust is a full-service, family-owned independent community bank built on the bond between our employees and customers. Founded in 1910 as Farmer’s State Bank, we first served the small community of Arnegard, North Dakota and have since grown to more than 30 branches spanning rural and urban communities in Arizona, Minnesota, North Dakota and South Dakota.

PETER STENEHJEM PRESIDENT