First Interstate Bank to Lower Credit for Oil, Gas Industry
First Interstate Bank will be scaling back loans to the oil and gas industry as oil prices remain unstable.
The Billings Gazette reports that the Billings-based company announced Thursday that about one-third of the roughly $100 million in loans and commitments to the industry are considered high risk.
CEO Kevin Riley says the bank has been lowering credit lines to the industry as they come up for renewal.
The biggest borrowers for oil and gas development are in Wyoming.
The price of oil fell below $40 a barrel this month and drilling has stalled in the Bakken shale in North Dakota. Over the past year a number of oil companies have declared bankruptcy, leaving lenders at risk.