FIRST INTERSTATE BANCSYSTEM INC

Previous wording

We are a financial and bank holding company focused on community banking. Since our incorporation in Montana in 1971, we have grown both organically and through strategic acquisitions. As of June 30, 2025, we operate 301 banking offices, including branches and detached drive-up facilities, in communities across fourteen states—Arizona, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oregon, South Dakota, Washington, and Wyoming. Through our bank subsidiary, First Interstate Bank, we deliver a comprehensive range of banking products and services—including online and mobile banking—to individuals, businesses, government entities, and others throughout our market areas. We are proud to provide lending opportunities to clients that participate in a wide variety of industries, including:

Current wording

We are a financial and bank holding company focused on community banking. Since our incorporation in Montana in 1971, we have grown both organically and through strategic acquisitions. As of November 6, 2025, we operated 289 banking offices, including branches and detached drive-up facilities, in communities across twelve states— Colorado, Idaho, Iowa, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oregon, South Dakota, Washington, and Wyoming. Through our bank subsidiary, First Interstate Bank, we deliver a comprehensive range of banking products and services—including online and mobile banking—to individuals, businesses, government entities, and others throughout our market areas. We are proud to provide lending opportunities to clients that participate in a wide variety of industries, including:

Previous wording

As of June 30, 2025, we had consolidated assets of $27.6 billion, deposits of $22.6 billion, net loans held for investment of $16.1 billion, and total stockholders’ equity of $3.4 billion.

Current wording

As of September 30, 2025, we had consolidated assets of $27.3 billion, deposits of $22.6 billion, net loans held for investment of $15.6 billion, and total stockholders’ equity of $3.4 billion.

Previous wording

In January 2025, we announced our plans to stop originating indirect loans as of February 28, 2025. Under our indirect lending program, indirect loans were created when we purchased consumer loan contracts advanced for the purchase of automobiles, boats, recreational vehicles, and other consumer goods from the consumer product dealer network within the market areas we serve. At June 30, 2025, indirect loans represented approximately 3.7% of loan balances and 81.9% of our consumer loan portfolio.

Current wording

In January 2025, we announced our plans to stop originating indirect loans as of February 28, 2025. Under our indirect lending program, indirect loans were created when we purchased consumer loan contracts advanced for the purchase of automobiles, boats, recreational vehicles, and other consumer goods from the consumer product dealer network within the market areas we serve. At September 30, 2025, indirect loans represented approximately 3.4% of loan balances and 80.1% of our consumer loan portfolio.

Previous wording

Pending Sale of Arizona and Kansas Branches

Current wording

Sale of Arizona and Kansas Branches

Previous wording

As previously disclosed, on April 28, 2025, the Bank entered into a Purchase and Assumption Agreement with Enterprise Bank & Trust (“Enterprise Bank”), a wholly-owned subsidiary of Enterprise Financial Services Corp, pursuant to which Enterprise Bank will acquire twelve branches from the Bank, including approximately $705 million in deposits and certain commercially-oriented loans with outstanding balances of $331 million as of June 30, 2025, and the owned real estate and fixed and other assets associated with the branches. The branches include all of the Bank’s Kansas and Arizona locations, with ten branches in Arizona and two branches in Kansas. Consummation of the transaction is subject to regulatory approvals and other customary conditions to closing. It is currently anticipated that the closing of the transaction will take place by early fourth quarter of 2025. In the second quarter of 2025, $338.3 million of loans held for investment related to the pending sale of the Arizona and Kansas branches were transferred to loans held-for-sale. For more information, see “Note 3 - Loans Held For Sale” in the accompanying “Notes to Unaudited Consolidated Financial Statements” included in this report.

Current wording

On October 10, 2025, the Bank closed the previously disclosed transaction with Enterprise Bank & Trust (“Enterprise Bank”), a wholly-owned subsidiary of Enterprise Financial Services Corp, pursuant to which Enterprise Bank acquired twelve branches from the Bank, including approximately $645 million in deposits and certain commercially-oriented loans with outstanding balances of $305 million, and the owned real estate and fixed and other assets associated with the branches. The branches included all of the Bank’s Kansas and Arizona locations, with ten branches in Arizona and two branches in Kansas. At September 30, 2025, $305.0 million of loans were held-for-sale in connection with the then pending sale of the Arizona and Kansas branches. For more information, see “Note 3 - Loans Held For Sale” in the accompanying “Notes to Unaudited Consolidated Financial Statements” included in this report.

Previous wording

As of June 30, 2025, our FDIC insured deposits were 64.6% of total deposits, including accounts eligible for pass-through insurance. As of July 31, 2025, the Bank had available borrowing capacity of $5.2 billion with the Federal Home Loan Bank (“FHLB”) and $2.4 billion with the Federal Reserve Bank (“FRB”) based on pledged investment securities and loan collateral.

Current wording

As of September 30, 2025, our FDIC insured deposits were 65.1% of total deposits, including accounts eligible for pass-through insurance. As of October 31, 2025, the Bank had available borrowing capacity of $5.5 billion with the Federal Home Loan Bank (“FHLB”) and $2.7 billion with the Federal Reserve Bank (“FRB”) based on pledged investment securities and loan collateral.

Previous wording

The Federal Reserve increased short-term interest rates 525 basis points between March 16, 2022 and July 29, 2023. With general inflationary pressures easing since July 2023, the Federal Reserve had paused any further changes to short-term interest rates and decreased them by 100 basis points between September 2024 and June 2025.

Current wording

With general inflationary pressures easing since July 2023, the Federal Reserve had paused any further changes to short-term interest rates until September 2024 and then decreased them by a total of 100 basis points in 2024. In 2025, the Federal Reserve decreased rates by 25 basis points in September and an additional 25 basis points in October.

Previous wording

The Company’s quarterly yield on interest earning assets increased to 4.76% as of June 30, 2025 from 4.75% as of March 31, 2025, and decreased from 4.80% as of June 30, 2024.

Current wording

The Company’s quarterly yield on interest earning assets decreased to 4.73% as of September 30, 2025 from 4.76% as of June 30, 2025, and decreased from 4.83% as of September 30, 2024.

Previous wording

The recent declines in short-term interest rates have benefited the Company’s cost of funds, primarily resulting in reduced rates on variable rate debt. The Company’s cost of funds decreased to 1.50% during the three months ended June 30, 2025 from 1.59% during the three months ended March 31, 2025, and decreased from 1.86% during the three months ended June 30, 2024. During the second quarter of 2025, the changes in the mix and cost of funds was partially offset by the change in the mix and yield on earning assets, resulting in an increase of the Company’s net interest margin during the three months ended June 30, 2025 to 3.30% from 3.19% during the three months ended March 31, 2025 and from 2.97% for the three months ended June 30, 2024. The Company’s FTE net interest margin, a non-GAAP financial measure, increased to 3.32% during the three months ended June 30, 2025, from 3.22% during the three months ended March 31, 2025, and increased from 3.00% during the three months ended June 30, 2024.

Current wording

The recent declines in short-term interest rates have benefited the Company’s cost of funds, primarily resulting in reduced rates on variable rate debt and deposits. The Company’s cost of funds decreased to 1.45% during the three months ended September 30, 2025 from 1.50% during the three months ended June 30, 2025, and decreased from 1.86% during the three months ended September 30, 2024. During the third quarter of 2025, the changes in the mix and cost of funds was partially offset by the change in the mix and yield on earning assets, resulting in an increase of the Company’s net interest margin during the three months ended September 30, 2025 to 3.34% from 3.30% during the three months ended June 30, 2025 and from 3.01% for the three months ended September 30, 2024. The Company’s FTE net interest margin, a non-GAAP financial measure, increased to 3.36% during the three months ended September 30, 2025, from 3.32% during the three months ended June 30, 2025, and increased from 3.04% during the three months ended September 30, 2024.

Previous wording

A slowdown, downturn, or recession in the U.S. economy or changes in U.S. trade policies could impact the Company by impacting the level of deposits held by our clients, whether through a higher volume of withdrawals or through a lower volume of deposits. Client deposits are one of the Company’s primary lending sources. The credit quality of the Company’s loans may also be impacted if clients must weather adverse economic conditions which could result in an increase in credit losses or other related expenses. For example, we believe macroeconomic conditions have contributed to slower lease-up in our multifamily portfolio, which resulted in an increase in criticized assets during the second quarter of 2025. For additional information regarding criticized assets, see “Note – Loans Held for Investment – Credit Quality Indicators” in the accompanying “Notes to Unaudited Consolidated Financial Statements” included in this report.

Current wording

A slowdown, downturn, or recession in the U.S. economy or changes in U.S. trade policies could impact the Company by impacting the level of deposits held by our clients, whether through a higher volume of withdrawals or through a lower volume of deposits. Client deposits are one of the Company’s primary lending sources. The credit quality of the Company’s loans may also be impacted if clients must weather adverse economic conditions which could result in an increase in credit losses or other related expenses. For example, we believe macroeconomic conditions contributed to slower lease-up in our multifamily portfolio, which resulted in an increase in criticized assets during the second quarter of 2025. In the third quarter of 2025, criticized assets improved as compared to the second quarter. For additional information regarding criticized assets, see “Note – Loans Held for Investment – Credit Quality Indicators” in the accompanying “Notes to Unaudited Consolidated Financial Statements” included in this report.

Previous wording

Our consolidated financial statements are prepared in accordance with GAAP and follow general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. The most significant accounting policies we follow are summarized in Note 1 of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024, and are also referenced in “Note 1 – Basis of Presentation” in the accompanying “Notes to Unaudited Consolidated Financial Statements” included in this report. There have been no material changes during the second quarter of 2025 in our critical accounting estimates and policies from the critical accounting estimates and policies as described in our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

Our consolidated financial statements are prepared in accordance with GAAP and follow general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. The most significant accounting policies we follow are summarized in Note 1 of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024, and are also referenced in “Note 1 – Basis of Presentation” in the accompanying “Notes to Unaudited Consolidated Financial Statements” included in this report. There have been no material changes during the third quarter of 2025 in our critical accounting estimates and policies from the critical accounting estimates and policies as described in our Annual Report on Form 10-K for the year ended December 31, 2024.

Previous wording

Net income increased $11.7 million to $71.7 million, or $0.69 per diluted share, during the three months ended June 30, 2025, as compared to net income of $60.0 million, or $0.58 per diluted share, for the same period in 2024, which is primarily attributable to a $9.3 million lower provision for credit losses and higher net interest income, partially offset by higher income tax expense. The net interest income increase was the result of lower interest expense on interest bearing liabilities during the 2025 period.

Current wording

Net income increased $15.9 million to $71.4 million, or $0.69 per diluted share, during the three months ended September 30, 2025, as compared to net income of $55.5 million, or $0.54 per diluted share, for the same period in 2024, which is primarily attributable to a $19.8 million lower provision for credit losses and higher net interest income, partially offset by higher income tax expense. The net interest income increase was the result of lower interest expense on interest bearing liabilities during the 2025 period.

Previous wording

Net income increased $3.5 million to $121.9 million, or $1.18 per diluted share, during the six months ended June 30, 2025, as compared to net income of $118.4 million, or $1.15 per diluted share, for the same period in 2024, which is primarily attributable to higher net interest income, partially offset by higher provision for credit losses during the 2025 period.

Current wording

Net income increased $19.4 million to $193.3 million, or $1.87 per diluted share, during the nine months ended September 30, 2025, as compared to net income of $173.9 million, or $1.69 per diluted share, for the same period in 2024, which is primarily attributable to higher net interest income and lower provision for credit losses, partially offset by lower noninterest income and higher income tax expense during the 2025 period.

Previous wording

Net interest income increased $5.5 million during the three months ended June 30, 2025, as compared to the same period in 2024, primarily due to a decrease in interest expense resulting from decreased rates on other borrowed funds along with a decrease in average other borrowed funds balances, partially offset by lower interest income on investment securities as a result of a decrease in average rates and average investment security balances and as a result of a decrease in average loan balances.

Current wording

Net interest income increased $1.3 million during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to a decrease in interest expense resulting from decreased rates on other borrowed funds along with a decrease in average other borrowed funds balances, partially offset by lower interest income on investment securities as a result of a decrease in average rates and average investment security balances and as a result of a decrease in average loan balances.

Previous wording

Net interest income included interest accretion related to the fair value of acquired loans of $4.2 million during the three months ended June 30, 2025, compared to interest accretion of $5.1 million during the three months ended June 30, 2024.

Current wording

Net interest income included interest accretion related to the fair value of acquired loans of $3.5 million during the three months ended September 30, 2025, compared to interest accretion of $4.4 million during the three months ended September 30, 2024.

Previous wording

Our net interest margin ratio increased 33 basis points to 3.30% for the three months ended June 30, 2025, as compared to 2.97% for the same period in 2024 and our net FTE interest margin ratio, a non-GAAP financial measure, increased 32 basis points for the three months ended June 30, 2025, as compared to the same period in 2024. Exclusive of the impact of interest accretion on acquired loans, the net FTE interest margin ratio increased 34 basis points to 3.26% during the three months ended June 30, 2025, as compared to 2.92% for the same period in 2024. The increases in net interest margin ratio were primarily as a result of lower interest expense resulting from decreased rates on borrowings and decreased other borrowed funds balances.

Current wording

Our net interest margin ratio increased 33 basis points to 3.34% for the three months ended September 30, 2025, as compared to 3.01% for the same period in 2024 and our net FTE interest margin ratio, a non-GAAP financial measure, increased 32 basis points for the three months ended September 30, 2025, as compared to the same period in 2024. Exclusive of the impact of interest accretion on acquired loans, the net FTE interest margin ratio increased 33 basis points to 3.30% during the three months ended September 30, 2025, as compared to 2.97% for the same period in 2024. The increases in the net interest margin ratio were primarily a result of lower interest expense resulting from decreased other borrowed funds balances.

Previous wording

Net interest income increased $10.4 million during the six months ended June 30, 2025, as compared to the same period in 2024, primarily due to a decrease in interest expense resulting from decreased rates on other borrowed funds along with a decrease in average other borrowed funds balances, partially offset by lower interest income on investment securities as a result of a decrease in average rates and average investment security balances and as a result of a decrease in average loan balances.

Current wording

Net interest income increased $11.7 million during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to a decrease in interest expense resulting from decreased rates on other borrowed funds along with a decrease in average other borrowed funds balances, partially offset by lower interest income on investment securities as a result of a decrease in average rates and average investment security balances and as a result of a decrease in average loan balances.

Previous wording

Net interest income included interest accretion related to the fair value of acquired loans of $8.9 million during the six months ended June 30, 2025, compared to interest accretion of $11.6 million during the six months ended June 30, 2024.

Current wording

Net interest income included interest accretion related to the fair value of acquired loans of $12.4 million during the nine months ended September 30, 2025, compared to interest accretion of $16.0 million during the nine months ended September 30, 2024.

Previous wording

Our net interest margin ratio increased 30 basis points to 3.24% for the six months ended June 30, 2025, as compared to 2.94% for the same period in 2024 and our net FTE interest margin ratio, a non-GAAP financial measure, increased 31 basis points for the six months ended June 30, 2025, as compared to the same period in 2024. Exclusive of the impact of interest accretion on acquired loans, the net FTE interest margin ratio increased 32 basis points to 3.20% during the six months ended June 30, 2025, as compared to 2.88% for the same period in 2024. The increases in net interest margin ratio were primarily as a result of lower interest expense resulting from decreased rates on borrowings and decreased other borrowed funds balances.

Current wording

Our net interest margin ratio increased 31 basis points to 3.27% for the nine months ended September 30, 2025, as compared to 2.96% for the same period in 2024 and our net FTE interest margin ratio, a non-GAAP financial measure, increased 31 basis points for the nine months ended September 30, 2025, as compared to the same period in 2024. Exclusive of the impact of interest accretion on acquired loans, the net FTE interest margin ratio increased 32 basis points to 3.23% during the nine months ended September 30, 2025, as compared to 2.91% for the same period in 2024. The increases in the net interest margin ratio were primarily a result of lower interest expense resulting from decreased other borrowed funds balances.

Previous wording

The table below sets forth a summary of the changes in interest income and interest expense resulting from estimated changes in average asset and liability balances (volume) and estimated changes in average interest rates (referred to as “rate”) for the three and the six months ended June 30, 2025 and 2024. Changes which are not due solely to volume or rate have been allocated to these categories based on the respective percent changes in average volume and average rate as they compare to each other.

Current wording

The table below sets forth a summary of the changes in interest income and interest expense resulting from estimated changes in average asset and liability balances (volume) and estimated changes in average interest rates (referred to as “rate”) for the three and the nine months ended September 30, 2025 and 2024. Changes which are not due solely to volume or rate have been allocated to these categories based on the respective percent changes in average volume and average rate as they compare to each other.

Previous wording

The Company recorded a $0.3 million reduction of credit losses, which included a provision for credit losses of $0.1 million on loans held for investment, a reduction of credit losses for unfunded commitments of $0.3 million, and a reduction of credit losses for investment securities of $0.1 million during the three months ended June 30, 2025, as compared to a $9.0 million provision for credit losses during same period in 2024. Net charge-offs were $5.8 million or an annualized 0.14% of average loans outstanding during the three months ended June 30, 2025, as compared to net charge-offs of $13.5 million, or an annualized 0.30% of average loans outstanding during the same period in 2024. Net loan charge-offs in the second quarter of 2025 were composed of charge-offs of $13.0 million, which were partially offset by recoveries of $7.2 million.

Current wording

The Company recorded a zero provision for credit losses, resulting from a reduction of credit losses of $1.5 million on loans held for investment and a provision for credit losses for unfunded commitments of $1.5 million during the three months ended September 30, 2025, as compared to a $19.8 million provision for credit losses during same period in 2024. Net charge-offs were $2.3 million or an annualized 0.06% of average loans outstanding during the three months ended September 30, 2025, as compared to net charge-offs of $27.4 million, or an annualized 0.60% of average loans outstanding during the same period in 2024. Net loan charge-offs in the third quarter of 2025 were composed of charge-offs of $6.7 million, which were partially offset by recoveries of $4.4 million.

Previous wording

The provision for credit losses during the six months ended June 30, 2025 of $19.7 million included a provision for credit losses on loans held for investment of $20.3 million, a reduction of credit losses on unfunded commitments of $0.4 million, and a reduction of credit losses on investment securities of $0.2 million. This compares to a provision for credit losses of $14.3 million during the same period in 2024. Net charge-offs were $14.8 million or an annualized 0.17% of average loans outstanding during the six months ended June 30, 2025, as compared to net charge-offs of $21.9 million, or an annualized 0.24% of average loans outstanding during the same period in 2024. Net loan charge-offs during the six months ended June 30, 2025 were composed of charge-offs of $23.8 million, which were partially offset by recoveries of $9.0 million.

Current wording

The provision for credit losses during the nine months ended September 30, 2025 of $19.7 million included a provision for credit losses on loans held for investment of $18.8 million, a provision for credit losses on unfunded commitments of $1.1 million, and a reduction of credit losses on investment securities of $0.2 million. This compares to a provision for credit losses of $34.1 million during the same period in 2024. Net charge-offs were $17.1 million or an annualized 0.13% of average loans outstanding during the nine months ended September 30, 2025, as compared to net charge-offs of $49.3 million, or an annualized 0.36% of average loans outstanding during the same period in 2024. Net loan charge-offs during the nine months ended September 30, 2025 were composed of charge-offs of $30.5 million, which were partially offset by recoveries of $13.4 million.

Previous wording

Payment services revenues consist of interchange fees that merchants pay for processing electronic payment transactions and ATM service fees. Payment services revenues decreased $0.8 million during the three months ended June 30, 2025, as compared to the same period in 2024. For the six months ended June 30, 2025, payment services revenues decreased $2.1 million, as compared to the same period in 2024, primarily due to a decrease in credit card interchange revenue and a decrease in debit card revenues.

Current wording

Payment services revenues consist of interchange fees that merchants pay for processing electronic payment transactions and ATM service fees. Payment services revenues decreased $1.9 million during the three months ended September 30, 2025, as compared to the same period in 2024. For the nine months ended September 30, 2025, payment services revenues decreased $4.0 million, as compared to the same period in 2024, primarily due to a decrease in credit card interchange revenue and a decrease in debit card revenues.

Previous wording

Service charges on deposit accounts are primarily driven by service fees and overdraft charges on deposit accounts. Service charges on deposit accounts increased $0.5 million during the three months ended June 30, 2025 compared to the same period in 2024. For the six months ended June 30, 2025, service charges on deposit accounts increased $1.1 million, as compared to the same period in 2024, primarily driven by an increase in ACH and wire services.

Current wording

Service charges on deposit accounts are primarily driven by service fees and overdraft charges on deposit accounts. Service charges on deposit accounts increased $0.4 million during the three months ended September 30, 2025 compared to the same period in 2024. For the nine months ended September 30, 2025, service charges on deposit accounts increased $1.5 million, as compared to the same period in 2024, primarily driven by an increase in ACH and wire services.

Previous wording

Other income primarily includes company-owned life insurance revenues, check printing income, agency stock dividends, and gains on sales of miscellaneous assets. Other income decreased $1.6 million during the three months ended June 30, 2025 and decreased $1.4 million during the six months ended June 30, 2025, as compared to the same periods in 2024, primarily due to a $7.3 million valuation allowance for loans transferred from loans held for investment to held for sale related to the pending sale of the Arizona and Kansas branches, partially offset by a $4.3 million gain received net of the related credit card rewards liability for the sale of the consumer credit card portfolio and an increase in life insurance proceeds.

Current wording

Other income primarily includes company-owned life insurance revenues, check printing income, and gains on sales of miscellaneous assets. Other income decreased $1.7 million during the three months ended September 30, 2025 compared to the same period in 2024, primarily due to a gain on sale of one our branches during the same period in 2024. Other income decreased $3.1 million during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to the second quarter of 2025 valuation allowance for loans transferred from loans held for investment to held for sale related to the then pending sale of Arizona and Kansas branches, which transaction closed on October 10, 2025 subsequent to the third quarter of 2025, partially offset by a gain received net of the related credit card rewards liability for the sale of the consumer credit card portfolio and an increase in life insurance proceeds in the third quarter of of 2025, and due to a gain on sale of one of our branches during the same period in 2024.

Previous wording

Salaries and wages expense decreased $1.3 million during the three months ended June 30, 2025 as compared to the same period in 2024, primarily due to lower short-term incentive accruals, which were partially offset by higher salaries and deferred loan costs. Salaries and wages expense increased $2.1 million during the six months ended June 30, 2025 as compared to the same period in 2024, primarily due to higher severance expense, deferred loan costs, and salaries, which were partially offset by lower short-term incentive accruals.

Current wording

Salaries and wages expense decreased $4.7 million during the three months ended September 30, 2025 as compared to the same period in 2024, primarily due to a $3.8 million accrual related to the Chief Executive Officer transition in the third quarter of 2024 and $3.1 million of lower short-term incentive accruals, which were partially offset by higher salaries, during the third quarter of 2025. Salaries and wages expense decreased $2.6 million during the nine months ended September 30, 2025 as compared to the same period in 2024, primarily due to a $3.8 million accrual related to the Chief Executive Officer transition in the third quarter of 2024 and lower short-term incentive accruals in the second quarter of 2025, which were partially offset by higher salaries and deferred loan costs.

Previous wording

Employee benefits expense increased $1.0 million during the three months ended June 30, 2025 as compared to the same period in 2024, primarily due to higher medical costs. Employee benefits expense increased $1.7 million during the six months ended June 30, 2025 as compared to the same period in 2024, primarily due to higher long-term incentives and payroll taxes, which were partially offset by lower medical costs.

Current wording

Employee benefits expense decreased $1.5 million during the three months ended September 30, 2025 as compared to the same period in 2024, primarily due to lower medical costs. Employee benefits expense increased $0.2 million during the nine months ended September 30, 2025 as compared to the same period in 2024.

Previous wording

Occupancy, net expense increased $1.7 million during the three months ended June 30, 2025 and increased $3.1 million during the six months ended June 30, 2025, as compared to the same periods in 2024, primarily due to increases in janitorial, maintenance, repairs, and snow removal costs.

Current wording

Occupancy, net expense increased $1.4 million during the three months ended September 30, 2025 and increased $4.5 million during the nine months ended September 30, 2025, as compared to the same periods in 2024, primarily due to increases in janitorial, maintenance, repairs, and snow removal costs.

Previous wording

Other Real Estate Owned (“OREO”) expense, net of income decreased $2.0 million during the three months ended June 30, 2025 and decreased $3.5 million during the six months ended June 30, 2025, as compared to the same periods in 2024, primarily due to a decrease in OREO valuation write-downs.

Current wording

Other Real Estate Owned (“OREO”) expense, net of income had no change during the three months ended September 30, 2025 and decreased $3.5 million during the nine months ended September 30, 2025, as compared to the same periods in 2024. The decrease during the nine months ended September 30, 2025 was primarily due to a decrease in OREO valuation write-downs.

Previous wording

FDIC insurance premiums decreased $2.6 million during the three months ended June 30, 2025 and decreased $5.7 million during the six months ended June 30, 2025, primarily resulting from lower assessment fees as a result of lower average assets compared to the same periods in 2024, which included a $1.5 million special assessment accrual recorded during the first quarter of 2024.

Current wording

FDIC insurance premiums decreased $1.5 million during the three months ended September 30, 2025 and decreased $7.2 million during the nine months ended September 30, 2025, primarily resulting from lower assessment fees as a result of lower average assets compared to the same periods in 2024, which included a $1.5 million special assessment accrual recorded during the first quarter of 2024.

Previous wording

Other expenses primarily include advertising and public relations costs; office supply, postage, freight, telephone, and travel expenses; donations expense; debit and credit card expenses; board of director fees; legal expenses; and other losses. Other expenses increased $1.8 million during the three months ended June 30, 2025 and increased $2.3 million during the six months ended June 30, 2025, primarily resulting from increases in donation expense compared to the same periods in 2024.

Current wording

Other expenses primarily include advertising and public relations costs; office supply, postage, freight, telephone, and travel expenses; donations expense; debit and credit card expenses; board of director fees; legal expenses; and other losses. Other expenses increased $2.7 million during the three months ended September 30, 2025 and increased $5.0 million during the nine months ended September 30, 2025, primarily resulting from increases in donation expense and the write-down of the fixed assets associated with the Arizona and Kansas branches pending disposition compared to the same periods in 2024.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law and contains numerous tax provisions. Since the bill was signed after the close of the quarter, no financial statement impact was reflected in the second quarter of 2025. The Company is currently evaluating the impact of the OBBBA on the consolidated financial statements.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law and contains numerous tax provisions. The Company is currently evaluating the OBBBA and does not expect a material impact on the consolidated financial statements.

Previous wording

Our effective federal tax rate was 18.4% for the three months ended June 30, 2025 and 2024, and was 18.6% for the six months ended June 30, 2025 compared to 18.4% for the six months ended June 30, 2024. Fluctuations in effective federal income tax rates are primarily driven by changes in actual and forecasted pre-tax income.

Current wording

Our effective federal tax rate was 17.8% for the three months ended September 30, 2025 compared to 18.6% for the three months ended September 30, 2024, and was 18.3% for the nine months ended September 30, 2025 compared to 18.5% for the nine months ended September 30, 2024. Fluctuations in effective federal income tax rates are primarily driven by changes in actual and forecasted pre-tax income.

Previous wording

State income tax applies primarily to pretax earnings generated within Arizona, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oregon, and South Dakota. Our effective state tax rate was 4.9% for the three months ended June 30, 2025 compared to 5.1% for the three months ended June 30, 2024 and was 5.2% for the six months ended June 30, 2025 and 2024.

Current wording

State income tax applies primarily to pretax earnings generated within Arizona, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oregon, and South Dakota. Our effective state tax rate was 5.0% for the three months ended September 30, 2025 compared to 5.2% for the three months ended September 30, 2024 and was 5.1% for the nine months ended September 30, 2025 compared to 5.2% for the nine months ended September 30, 2024.

Previous wording

Total assets decreased $1,571.0 million, or 5.4%, to $27,566.4 million as of June 30, 2025, from $29,137.4 million as of December 31, 2024, primarily due to decreases in investment securities and loans. Significant fluctuations in balance sheet accounts are discussed below. More information regarding the results as of December 31, 2024 can be found in our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

Total assets decreased $1,804.5 million, or 6.2%, to $27,332.9 million as of September 30, 2025, from $29,137.4 million as of December 31, 2024, primarily due to decreases in investment securities and loans. Significant fluctuations in balance sheet accounts are discussed below. More information regarding the results as of December 31, 2024 can be found in our Annual Report on Form 10-K for the year ended December 31, 2024.

Previous wording

We manage our investment portfolio to obtain the highest yield possible while meeting our risk tolerance and liquidity guidelines and satisfying the pledging requirements for deposits of state and political subdivisions and securities sold under repurchase agreements. Our portfolio principally comprises U.S. treasury notes, U.S. government agency, U.S. government agency commercial mortgage-backed securities, U.S. government residential mortgage-backed securities, U.S. government agency collateralized mortgage obligations, collateralized loan obligation, corporate securities, and tax-exempt municipal securities.

Current wording

We manage our investment portfolio to obtain the highest yield possible while meeting our credit and interest rate risk tolerance and liquidity guidelines and satisfying the pledging requirements for deposits of state and political subdivisions and securities sold under repurchase agreements. Our portfolio principally comprises U.S. treasury notes, U.S. government agency, U.S. government agency commercial mortgage-backed securities, U.S. government residential mortgage-backed securities, U.S. government agency collateralized mortgage obligations, collateralized loan obligation, corporate securities, and tax-exempt municipal securities.

Previous wording

Debt securities rated in the highest category by nationally recognized rating agencies and debt securities backed by the U.S. Government and government sponsored agencies, both on a direct and indirect basis, represented approximately 93.0% and 94.2% of the investment portfolio’s available-for-sale and held-to maturity segments, respectively, at June 30, 2025. All other held-to-maturity debt securities rated below AAA, not backed by the U.S. Government or government sponsored agencies, or which are not rated represented approximately 5.8% of total held-to maturity debt securities at June 30, 2025.

Current wording

Debt securities rated in the highest category by nationally recognized rating agencies and debt securities backed by the U.S. Government and government sponsored agencies, both on a direct and indirect basis, represented approximately 94.5% and 93.9% of the investment portfolio’s available-for-sale and held-to maturity segments, respectively, at September 30, 2025. All other held-to-maturity debt securities rated below AAA, not backed by the U.S. Government or government sponsored agencies, or which are not rated represented approximately 6.1% of total held-to maturity debt securities at September 30, 2025.

Previous wording

Investment securities decreased $432.4 million, or 5.6%, to $7,312.2 million, or 26.5% of total assets, as of June 30, 2025, from $7,744.6 million, or 26.6% of total assets, as of December 31, 2024. The decrease was primarily resulting from called securities and normal pay-downs and maturities, partially offset by a $115.4 million increase in fair market values and $78.3 million in purchases of investment securities during the period.

Current wording

Investment securities decreased $438.8 million, or 5.7%, to $7,305.8 million, or 26.7% of total assets, as of September 30, 2025, from $7,744.6 million, or 26.6% of total assets, as of December 31, 2024. The decrease was primarily resulting from called securities, pay-downs, and maturities, partially offset by a $153.6 million increase in fair market values and $803.5 million in purchases of investment securities during the period.

Previous wording

As of June 30, 2025 and December 31, 2024, the estimated duration of our investment portfolio was 3.6 and 3.7 years, respectively.

Current wording

As of September 30, 2025 and December 31, 2024, the estimated duration of our investment portfolio was 3.5 and 3.7 years, respectively.

Previous wording

As of June 30, 2025 and December 31, 2024, we had $6,087.1 million and $6,296.7 million, respectively, of investment securities that had been in a continuous loss position for more than twelve months. Gross unrealized losses on these securities totaled $560.9 million as of June 30, 2025, and were attributable to changes in interest rates. At June 30, 2025 and December 31, 2024, the Company hadno allowance for credit losses on available-for-sale securities and an allowance for credit losses on held-to maturity securities classified as corporate and municipal securities of $0.7 million and $0.9 million, respectively.

Current wording

As of September 30, 2025 and December 31, 2024, we had $5,797.6 million and $6,296.7 million, respectively, of investment securities that had been in a continuous loss position for more than twelve months. Gross unrealized losses on these securities totaled $495.6 million as of September 30, 2025, and were attributable to changes in interest rates. At September 30, 2025 and December 31, 2024, the Company had no allowance for credit losses on available-for-sale securities and an allowance for credit losses on held-to maturity securities classified as corporate and municipal securities of $0.7 million and $0.9 million, respectively.