First Interstate Bank: SBA business acquisition lending record
First Interstate Bank (home state MT) approved 128 SBA 7(a) loans to buy existing businesses since FY2018, totaling $109M. The median loan was $531,800. It ranks number 81 of 280 lenders by count and made 0.3% of all SBA acquisition loans nationally.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $225,300 and $1,027,975. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Washington is the largest state (20% of loans). Loans appear in only 12 states, which points to a regional lender.
- Industry concentration. Limited-Service Restaurants is 6% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 403 SBA 7(a) loans of any purpose since FY2020, totaling $212M. 86% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 16% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2018 to FY2021: 2.0% charged off, 44% lower than the 3.5% national average.
First Interstate Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 11 | $8.1M | $350,000 | |
| FY2019 | 9 | $2.9M | $289,200 | |
| FY2020 | 16 | $15.2M | $705,000 | |
| FY2021 | 15 | $14.3M | $456,300 | |
| FY2022 | 22 | $16.4M | $651,450 | |
| FY2023 | 14 | $11.2M | $753,900 | |
| FY2024 | 15 | $11.2M | $434,000 | |
| FY2025 | 9 | $5.5M | $331,000 | |
| FY2026 | 17 | $24.3M | $259,000 |
How often do these acquisition loans fail?
Of the 51 First Interstate Bank acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 1 have been charged off by the SBA, a rate of 2.0% by loan count and 0.7% by dollars. 25 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so First Interstate Bank is 44% lower than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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States served
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 8 | 6.3% | $5M | |
| 2 | Landscaping Services | 5 | 3.9% | $2.7M | |
| 3 | Full-Service Restaurants | 4 | 3.1% | $2.3M | |
| 4 | Finish Carpentry Contractors | 3 | 2.3% | $6.4M | |
| 5 | Child Care Services | 3 | 2.3% | $2.4M | |
| 6 | Plumbing, Heating, and Air-Conditioning Contractors | 3 | 2.3% | $2.2M | |
| 7 | Roofing Contractors | 3 | 2.3% | $1.5M | |
| 8 | Office Supplies and Stationery Retailers | 3 | 2.3% | $1.3M | |
| 9 | Other Building Material Dealers | 3 | 2.3% | $1.2M | |
| 10 | All Other Miscellaneous Fabricated Metal Product Manufacturing | 2 | 1.6% | $5M |
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Ace Hardware | 2 | 1.6% | $4M | |
| 2 | The Goddard School | 1 | 0.8% | $1.5M | |
| 3 | Dairy Queen | 1 | 0.8% | $1.2M | |
| 4 | IGA USA | 1 | 0.8% | $1.1M | |
| 5 | AAMCO Transmissions and Total Car Care | 1 | 0.8% | $824K | |
| 6 | Americas Best Value Inn | 1 | 0.8% | $790K | |
| 7 | AM/PM Mini-Mart | 1 | 0.8% | $774K | |
| 8 | The UPS Store | 1 | 0.8% | $759K | |
| 9 | LINE-X | 1 | 0.8% | $420K | |
| 10 | Huntington Learning Center | 1 | 0.8% | $300K |
Questions buyers ask
Does First Interstate Bank make SBA acquisition loans?
Yes. First Interstate Bank approved 128 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 81 of 280 lenders with 25 or more such loans. The SBA file shows past approvals only; it cannot tell you whether the lender will approve a particular buyer or deal.
How large are First Interstate Bank's acquisition loans?
The median was $531,800, with the middle half between $225,300 and $1,027,975. The national median is $645,250, so this lender's typical loan is 18% lower than the national figure.
Which states does First Interstate Bank lend in?
Washington (25), Montana (24), Oregon (21), South Dakota (20), Iowa (10), Idaho (9). Its loans appear in 12 states, so it is closer to a regional lender.
Which industries does First Interstate Bank finance?
Limited-Service Restaurants (8), Landscaping Services (5), Full-Service Restaurants (4), Finish Carpentry Contractors (3), Child Care Services (3). The top industry is 6% of its acquisition loans.
How have First Interstate Bank's acquisition loans performed?
Of 51 loans approved FY2018 to FY2021: 2.0% charged off, 44% lower than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
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Related
- Washington acquisitions
- Montana acquisitions
- Oregon acquisitions
- Limited-Service Restaurants
- Landscaping Services
- Full-Service Restaurants
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by First Interstate Bank.