FIRST INTERSTATE BANCSYSTEM INC

Previous wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. Any statements about our plans, objectives, expectations, strategies, beliefs, or future performance, financial condition, results of operations, investment portfolio, market position, or events constitute forward-looking statements. Such statements are identified by words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trends,” “objectives,” “views,” “continues,” “projected,” as well as the negative forms of those words or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “seek,” “might,” “may,” as well as the negative forms of those words or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other important factors that could cause actual results to differ materially from any results, performance or events expressed or implied by such forward-looking statements. A detailed discussion of risks that may cause actual results to differ materially from current expectations in the forward-looking statements is included below in this report under the caption “Risk Factors” and in our Annual Report on Form 10-K for the year ended December 31, 2025, under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors”. These factors and the other risk factors described in our periodic and current reports filed with the SEC from time to time, however, are not necessarily all of the important factors that could cause our actual results, performance, or achievements to differ materially from those expressed in or implied by any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results.

Current wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. Any statements about our plans, objectives, expectations, strategies, beliefs, or future performance, financial condition, results of operations, investment portfolio, market position, or events constitute forward-looking statements. Such statements are identified by words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trends,” “objectives,” “views,” “continues,” “projected,” as well as the negative forms of those words or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “seek,” “might,” “may,” as well as the negative forms of those words or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other important factors that could cause actual results to differ materially from any results, performance or events expressed or implied by such forward-looking statements. A detailed discussion of risks that may cause actual results to differ materially from current expectations in the forward-looking statements is included in our Annual Report on Form 10-K for the year ended December 31, 2025, under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors”. These factors and the other risk factors described in our periodic and current reports filed with the SEC from time to time, however, are not necessarily all of the important factors that could cause our actual results, performance, or achievements to differ materially from those expressed in or implied by any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results.

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 July 30, 2026, we operated 271 banking offices, including branches and detached drive-up facilities, in communities across ten states—Colorado, Idaho, Iowa, Missouri, Montana, Nebraska, 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 financial services and products 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 October 30, 2026, we operated 270 banking offices, including branches and detached drive-up facilities, in communities across ten states—Colorado, Idaho, Iowa, Missouri, Montana, Nebraska, 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 financial services and products to clients that participate in a wide variety of industries, including:

Previous wording

As of June 30, 2026, we had consolidated assets of $25.9 billion, deposits of $21.4 billion, net loans held for investment of $14.1 billion, and total stockholders’ equity of $3.3 billion.

Current wording

As of September 30, 2026, we had consolidated assets of $25.8 billion, deposits of $21.4 billion, net loans held for investment of $13.8 billion, and total stockholders’ equity of $3.2 billion.

Previous wording

On August 28, 2025, the board of directors of the Company adopted a new stock repurchase program, pursuant to which the Company has been authorized to repurchase up to $150.0 million of its issued and outstanding shares of common stock on or prior to March 31, 2027, which is the expiration date of the program. On January 27, 2026, the board of directors authorized an increase to the repurchase program of an additional $150.0 million and on July 22, 2026, the board of directors authorized an additional increase to the repurchase program of an additional $150.0 million, or a total of $450.0 million authorized since its adoption in August of 2025. Any repurchased shares will be returned to authorized but unissued shares of common stock, as permitted under applicable Delaware law. As of July 30, 2026, approximately $170.4 million remained available for future purchases under the $450.0 million authorized.

Current wording

On August 28, 2025, the board of directors of the Company adopted a new stock repurchase program, pursuant to which the Company has been authorized to repurchase up to $150.0 million of its issued and outstanding shares of common stock on or prior to March 31, 2027, which is the expiration date of the program. On January 27, 2026, the board of directors authorized an increase to the repurchase program of an additional $150.0 million and on July 22, 2026, the board of directors authorized an additional increase to the repurchase program of an additional $150.0 million, or a total of $450.0 million authorized since its adoption in August of 2025. Any repurchased shares will be returned to authorized but unissued shares of common stock, as permitted under applicable Delaware law. As of October 30, 2026, approximately $70.3 million remained available for future purchases under the $450.0 million authorized.

Previous wording

On April 10, 2026, the Bank closed the previously disclosed transaction with Security First Bank (“Security First”) for a gain of $19.5 million, pursuant to which Security First acquired eleven Nebraska branches from the Bank, including approximately $244.2 million in deposits and loans with outstanding balances of $64.1 million and the owned real estate and fixed and other assets associated with the branches.

Current wording

On April 10, 2026, the Bank closed the transaction with Security First Bank (“Security First”) for a gain of $19.5 million, pursuant to which Security First acquired eleven Nebraska branches from the Bank, including approximately $244.2 million in deposits and loans with outstanding balances of $64.1 million and the owned real estate, the fixed assets and other assets associated with the branches.

Previous wording

The Company closed four additional branches in Nebraska in the first quarter of 2026. These branch closures were intended to enhance operational efficiency and better position the Company for long-term success. Subsequent to the sale and closures, the Company has 29 branches remaining in Nebraska.

Current wording

The Company closed four additional branches in Nebraska in the first quarter of 2026. Subsequent to the sale and closures, the Company has 29 branches remaining in Nebraska.

Previous wording

Closure of Iowa Branch and Oregon Branch, and Pending Closure of Washington Branch

Current wording

Closure of Iowa Branch, Oregon Branch, and Washington Branch

Previous wording

As previously announced, following a strategic review, the Company closed two branches, one branch in Iowa and one branch in Oregon on July 10, 2026 and intends to close one branch in Washington during the third quarter of 2026. These branch closures are intended to enhance operational efficiency and better position the Company for long-term success.

Current wording

As previously announced, following a strategic review, the Company intends to close three branches, one branch in Colorado, one branch in South Dakota, and one branch in Oregon during the fourth quarter of 2026. These branch closures are intended to enhance operational efficiency and better position the Company for long-term success.

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. Since discontinuing new originations, the indirect loan portfolio has continued to decline through scheduled amortization and normal portfolio runoff. This runoff is expected to continue over the remaining contractual terms of the existing loans, which generally mature in seven years or less. At June 30, 2026, the Company’s $369.0 million of indirect loans represented approximately 2.6% of loan balances and 74.7% 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. Since discontinuing new originations, the indirect loan portfolio has continued to decline through scheduled amortization and normal portfolio runoff. This runoff is expected to continue over the remaining contractual terms of the existing loans, which generally mature in seven years or less. At September 30, 2026, the Company’s $321.3 million of indirect loans represented approximately 2.3% of loan balances and 72.2% of our consumer loan portfolio.

Previous wording

As of June 30, 2026, our FDIC insured deposits were 63.1% of total deposits, including accounts eligible for pass-through insurance. As of July 30, 2026, the Bank had available borrowing capacity of $4.8 billion with the Federal Home Loan Bank (“FHLB”) and $5.0 billion with the Federal Reserve Bank (“FRB”) based on pledged investment securities and loan collateral.

Current wording

As of September 30, 2026, our FDIC insured deposits were 63.5% of total deposits, including accounts eligible for pass-through insurance. As of October 30, 2026, the Bank had available borrowing capacity of $4.8 billion with the Federal Home Loan Bank (“FHLB”) and $5.3 billion with the Federal Reserve Bank (“FRB”) based on pledged investment securities and loan collateral.

Previous wording

The Company’s quarterly yield on interest earning assets increased to 4.65% for the three months ended June 30, 2026 from 4.63% for the three months ended March 31, 2026, and decreased from 4.76% for the three months ended June 30, 2025.

Current wording

The Company’s quarterly yield on interest earning assets increased to 4.68% for the three months ended September 30, 2026 from 4.65% for the three months ended June 30, 2026, and decreased from 4.73% for the three months ended September 30, 2025.

Previous wording

Lower 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 1.23% during the three months ended June 30, 2026 from 1.27% during the three months ended March 31, 2026.

Current wording

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 1.19% during the three months ended September 30, 2026 from 1.23% during the three months ended June 30, 2026, and decreased from 1.45% during the three months ended September 30, 2025.

Previous wording

During the second quarter of 2026, the changes in the mix and cost of funds were partially supported by the changes in the mix and yield on earning assets, resulting in an increase in the Company’s net interest margin to 3.45% during the three months ended June 30, 2026, from 3.41% during the three months ended March 31, 2026. The Company’s net FTE interest margin, a non-GAAP financial measure, increased to 3.48% during the three months ended June 30, 2026, from 3.43% during the three months ended March 31, 2026.

Current wording

During the third quarter of 2026, the changes in the mix and cost of funds were partially supported by the changes in the mix and yield on earning assets, resulting in an increase in the Company’s net interest margin to 3.53% during the three months ended September 30, 2026, from 3.45% during the three months ended June 30, 2026 and 3.34% during the three months ended September 30, 2025. The Company’s net FTE interest margin, a non-GAAP financial measure, increased to 3.55% during the three months ended September 30, 2026, from 3.48% during the three months ended June 30, 2026 and 3.36% during the three months ended September 30, 2025.

Previous wording

A slowdown, downturn, or recession in the U.S. economy or changes in U.S. trade policies could impact the Company, including 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, the estimated effects of current and forecasted economic conditions are reflected in the Company’s provision for credit losses and allowance for credit losses. During the second quarter of 2026, the Company recorded a $3.2 million reversal of provision for credit losses, and the allowance for credit losses decreased to 1.28% of loans held for investment at June 30, 2026, from 1.33% at March 31, 2026. During the same period, non-performing assets increased approximately 1.5% while criticized loans decreased 9.3%. For additional information regarding non-performing assets, allowance for credit losses, and credit quality indicators, 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, including 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, the estimated effects of current and forecasted economic conditions are reflected in the Company’s provision for credit losses and allowance for credit losses. During the third quarter of 2026, the Company recorded a $10.5 million provision for credit losses, and the allowance for credit losses increased to 1.30% of loans held for investment at September 30, 2026, from 1.28% at June 30, 2026. During the same period, non-performing assets decreased approximately 6.1% while criticized loans increased 0.2%. For additional information regarding non-performing assets, allowance for credit losses, and credit quality indicators, see “Note – Loans Held for Investment – Credit Quality Indicators” in the accompanying “Notes to Unaudited Consolidated Financial Statements” included in this report.

Previous wording

As a banking institution, we manage and evaluate our financial condition and our results of operations. We monitor and evaluate the levels and trends of the line items included in our balance sheet and statements of income, as well as the various financial ratios that are commonly used in our industry. We analyze these ratios and financial trends against both our own historical levels as well as the financial condition and performance of comparable banking institutions in our region and nationally.

Current wording

As a banking institution, we manage and evaluate our financial condition and our results of operations. We monitor and evaluate the levels and trends of the line items included in our balance sheets and statements of income, as well as the various financial ratios that are commonly used in our industry. We analyze these ratios and financial trends against both our own historical levels as well as the financial condition and performance of comparable banking institutions in our region and nationally.

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, 2025, 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 2026 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, 2025.

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, 2025, 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 2026 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, 2025.

Previous wording

Net income increased $12.2 million to $83.9 million, or $0.87 per diluted share, during the three months ended June 30, 2026, as compared to net income of $71.7 million, or $0.69 per diluted share, for the same period in 2025, which is primarily attributable to the $19.5 million gain recorded from the previously announced sale of the eleven Nebraska branches during the second quarter of 2026, partially offset by lower net interest income.

Current wording

Net income decreased $9.2 million to $62.2 million, or $0.65 per diluted share, during the three months ended September 30, 2026, as compared to net income of $71.4 million, or $0.69 per diluted share, for the same period in 2025, which is primarily attributable to the $10.5 million provision for credit losses recorded during the third quarter of 2026.

Previous wording

Net income increased $22.2 million to $144.1 million, or $1.47 per diluted share, during the six months ended June 30, 2026, as compared to net income of $121.9 million, or $1.18 per diluted share, for the same period in 2025, which is primarily attributable to the $19.5 million gain recorded from the previously announced sale of the eleven Nebraska branches during the second quarter of 2026, partially offset by lower net interest income for the 2026 period.

Current wording

Net income increased $13.0 million to $206.3 million, or $2.13 per diluted share, during the nine months ended September 30, 2026, as compared to net income of $193.3 million, or $1.87 per diluted share, for the same period in 2025, which is primarily attributable to the $19.5 million gain recorded from the sale of the eleven Nebraska branches during the second quarter of 2026, partially offset by lower net interest income for the 2026 period.

Previous wording

Net interest income included interest accretion related to the fair value of acquired loans of $3.5 million during the three months ended June 30, 2026, compared to interest accretion of $4.2 million during the three months ended June 30, 2025.

Current wording

Net interest income included interest accretion related to the fair value of acquired loans of $2.4 million during the three months ended September 30, 2026, compared to interest accretion of $3.5 million during the three months ended September 30, 2025.

Previous wording

Our net interest margin ratio increased 15 basis points to 3.45% for the three months ended June 30, 2026, as compared to 3.30% for the same period in 2025 and our net FTE interest margin ratio, a non-GAAP financial measure, increased 16 basis points for the three months ended June 30, 2026, as compared to the same period in 2025. Exclusive of the impact of interest accretion on acquired loans, the net FTE interest margin ratio increased 16 basis points to 3.42% during the three months ended June 30, 2026, as compared to 3.26% for the same period in 2025. The increases in the net interest margin ratio were primarily a result of lower interest expense resulting from decreased other borrowed funds balances.

Current wording

Our net interest margin ratio increased 19 basis points to 3.53% for the three months ended September 30, 2026, as compared to 3.34% for the same period in 2025 and our net FTE interest margin ratio, a non-GAAP financial measure, increased 19 basis points for the three months ended September 30, 2026, as compared to the same period in 2025. Exclusive of the impact of interest accretion on acquired loans, the net FTE interest margin ratio increased 21 basis points to 3.51% during the three months ended September 30, 2026, as compared to 3.30% for the same period in 2025. The increases in the net interest margin ratio were primarily as a result of lower cost of deposits and an improved funding mix, partially offset by lower average loan balances.

Previous wording

Net interest income decreased $9.3 million during the six months ended June 30, 2026, as compared to the same period in 2025, primarily due to lower interest income on loans as a result of a decrease in average rates and average loan balances driven by the sale of the Arizona and Kansas branches during the fourth quarter of 2025 and the sale of eleven Nebraska branches during the second quarter of 2026, partially offset by a decrease in interest expense resulting from decreased rates on other borrowed funds and deposits along with a decrease in average other borrowed funds balances and higher interest income on investment securities as a result of an increase in average rates and average investment security balances.

Current wording

Net interest income decreased $9.9 million during the nine months ended September 30, 2026, as compared to the same period in 2025, primarily due to lower interest income on loans as a result of a decrease in average rates and average loan balances driven by the sale of the Arizona and Kansas branches during the fourth quarter of 2025 and the sale of eleven Nebraska branches during the second quarter of 2026, partially offset by a decrease in interest expense resulting from decreased rates on other borrowed funds and deposits along with a decrease in average other borrowed funds balances and higher interest income on investment securities as a result of an increase in average rates and average investment security balances.

Previous wording

Net interest income included interest accretion related to the fair value of acquired loans of $6.6 million during the six months ended June 30, 2026, compared to interest accretion of $8.9 million during the six months ended June 30, 2025.

Current wording

Net interest income included interest accretion related to the fair value of acquired loans of $9.0 million during the nine months ended September 30, 2026, compared to interest accretion of $12.4 million during the nine months ended September 30, 2025.

Previous wording

Our net interest margin ratio increased 19 basis points to 3.43% for the six months ended June 30, 2026, as compared to 3.24% for the same period in 2025 and our net FTE interest margin ratio, a non-GAAP financial measure, increased 18 basis points for the six months ended June 30, 2026, as compared to the same period in 2025. Exclusive of the impact of interest accretion on acquired loans, the net FTE interest margin ratio increased 20 basis points to 3.40% during the six months ended June 30, 2026, as compared to 3.20% for the same period in 2025. The increases in the net interest margin ratio were primarily a result of lower interest expense resulting from decreased other borrowed funds balances.

Current wording

Our net interest margin ratio increased 19 basis points to 3.46% for the nine months ended September 30, 2026, as compared to 3.27% for the same period in 2025 and our net FTE interest margin ratio, a non-GAAP financial measure, increased 19 basis points for the nine months ended September 30, 2026, as compared to the same period in 2025. Exclusive of the impact of interest accretion on acquired loans, the net FTE interest margin ratio increased 20 basis points to 3.43% during the nine months ended September 30, 2026, as compared to 3.23% for the same period in 2025. 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, 2026 and 2025. 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, 2026 and 2025. 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 $3.2 million reduction of credit losses, resulting from a reduction of credit losses of $3.9 million on loans held for investment, a provision for credit losses for unfunded commitments of $1.1 million, and a reduction of credit losses on investment securities of $0.4 million during the three months ended June 30, 2026, as compared to a $0.3 million reduction of credit losses during the same period in 2025. Net charge-offs were $9.7 million or an annualized 0.27% of average loans outstanding during the three months ended June 30, 2026, as compared to net charge-offs of $5.8 million, or an annualized 0.14% of average loans outstanding during the same period in 2025. Net loan charge-offs in the second quarter of 2026 were composed of charge-offs of $14.0 million, which were partially offset by recoveries of $4.3 million.

Current wording

The Company recorded a $10.5 million provision for credit losses, resulting from a provision for credit losses of $9.1 million on loans held for investment and a provision for credit losses for unfunded commitments of $1.4 million during the three months ended September 30, 2026, as compared to no provision for credit losses during the same period in 2025. Net charge-offs were $9.9 million or an annualized 0.28% of average loans outstanding during the three months ended September 30, 2026, as compared to net charge-offs of $2.3 million, or an annualized 0.06% of average loans outstanding during the same period in 2025. Net loan charge-offs in the third quarter of 2026 were composed of charge-offs of $11.9 million, which were partially offset by recoveries of $2.0 million.

Previous wording

The provision for credit losses during the six months ended June 30, 2026 of $3.5 million included a provision for credit losses on loans held for investment of $2.9 million, a provision for credit losses on unfunded commitments of $1.0 million, and a reduction of credit losses on investment securities of $0.4 million. This compares to a provision for credit losses of $19.7 million during the same period in 2025. Net charge-offs were $12.1 million or an annualized 0.17% of average loans outstanding during the six months ended June 30, 2026, as compared to net charge-offs of $14.8 million, or an annualized 0.17% of average loans outstanding during the same period in 2025. Net loan charge-offs during the six months ended June 30, 2026 were composed of charge-offs of $20.5 million, which were partially offset by recoveries of $8.4 million.

Current wording

The provision for credit losses during the nine months ended September 30, 2026 of $14.0 million included a provision for credit losses on loans held for investment of $12.0 million, a provision for credit losses on unfunded commitments of $2.4 million, and a reduction of credit losses on investment securities of $0.4 million. This compares to a provision for credit losses of $19.7 million during the same period in 2025. Net charge-offs were $22.0 million or an annualized 0.20% of average loans outstanding during the nine months ended September 30, 2026, as compared to net charge-offs of $17.1 million, or an annualized 0.13% of average loans outstanding during the same period in 2025. Net loan charge-offs during the nine months ended September 30, 2026 were composed of charge-offs of $32.4 million, which were partially offset by recoveries of $10.4 million.

Previous wording

Noninterest income increased $20.6 million during the three months ended June 30, 2026 compared to the same period in 2025 primarily driven by an increase of $19.5 million related to the gain recorded on the previously announced sale of the eleven Nebraska branches during the second quarter of 2026. For the six months ended June 30, 2026, noninterest income increased $19.7 million, as compared to the same period in 2025 driven by an increase of $19.5 million related to the gain recorded on the previously announced sale of the eleven Nebraska branches during the second quarter of 2026 and an increase in wealth management revenues mainly as a result of increased trust and estate fees, partially offset by a decrease in payment services revenues which was mainly the result of outsourcing the consumer credit card portfolio in the second quarter of 2025.

Current wording

Noninterest income decreased $0.4 million during the three months ended September 30, 2026 compared to the same period in 2025. For the nine months ended September 30, 2026, noninterest income increased $19.3 million, as compared to the same period in 2025 driven by an increase of $19.5 million related to the gain recorded on the sale of the eleven Nebraska branches during the second quarter of 2026 and an increase in wealth management revenues mainly as a result of increased trust and estate fees, partially offset by a decrease in payment services revenues which was mainly the result of outsourcing the consumer credit card portfolio in the second quarter of 2025.

Previous wording

Employee benefits expense increased $1.1 million during the three months ended June 30, 2026 as compared to the same period in 2025, primarily due to higher health insurance costs of $1.0 million during the second quarter of 2026. Employee benefits expense increased $2.3 million during the six months ended June 30, 2026 as compared to the same period in 2025, primarily due to higher health insurance costs of $4.1 million, partially offset by lower long-term incentives of $1.4 million during the 2026 period.

Current wording

Employee benefits expense increased $1.3 million during the three months ended September 30, 2026 as compared to the same period in 2025, primarily due to higher health insurance costs of $1.4 million during the third quarter of 2026. Employee benefits expense increased $3.6 million during the nine months ended September 30, 2026 as compared to the same period in 2025, primarily due to higher health insurance costs of $5.4 million, partially offset by lower long-term incentives of $1.5 million during the 2026 period.

Previous wording

Outsourced technology services increased $3.4 million during the three months ended June 30, 2026 as compared to the same period in 2025, and increased $5.1 million during the six months ended June 30, 2026 primarily due to increases in account processing software costs and an increase in software service costs.

Current wording

Outsourced technology services increased $1.8 million during the three months ended September 30, 2026 as compared to the same period in 2025, and increased $6.9 million during the nine months ended September 30, 2026 primarily due to increases in account processing software costs and an increase in software service costs.

Previous wording

Other Real Estate Owned (“OREO”) expense, net increased $0.6 million during the three months ended June 30, 2026 as compared to the same period in 2025, and decreased $1.0 million during the six months ended June 30, 2026, as compared to the same period in 2025. The decrease during the six months ended June 30, 2026 was primarily due to a positive fair value adjustment to a commercial property during the first quarter of 2026.

Current wording

Other Real Estate Owned (“OREO”) expense, net decreased $0.1 million during the three months ended September 30, 2026 as compared to the same period in 2025, and decreased $1.1 million during the nine months ended September 30, 2026, as compared to the same period in 2025. The decrease during the nine months ended September 30, 2026 was primarily due to a positive fair value adjustment to a commercial property during the first quarter of 2026.

Previous wording

FDIC insurance premiums decreased $0.6 million during the three months ended June 30, 2026 as compared to the same period in 2025, and decreased $2.1 million during the six months ended June 30, 2026, primarily attributable to lower FDIC assessment rates in 2026 due to lower average assets and as a result of an adjustment to the special assessment accrual to cover the losses incurred by the Deposit Insurance Fund (“DIF”) in response to the 2023 bank failures.

Current wording

FDIC insurance premiums decreased $0.5 million during the three months ended September 30, 2026 as compared to the same period in 2025, and decreased $2.6 million during the nine months ended September 30, 2026, primarily attributable to lower FDIC assessment rates in 2026 due to lower average assets and as a result of an adjustment to our special assessment accrual in the first quarter of 2026 to cover the losses incurred by the Deposit Insurance Fund (“DIF”) in response to the 2023 bank failures.

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 decreased $0.3 million during the three months ended June 30, 2026 compared to the same period in 2025, and decreased $2.2 million during the six months ended June 30, 2026, primarily resulting from decreases in donation expense and losses on sale of fixed assets.

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 decreased $1.1 million during the three months ended September 30, 2026 compared to the same period in 2025, primarily resulting from decreases in donation and credit card reward expenses, partially offset by an increase in advertising costs. Other expenses decreased $3.3 million during the nine months ended September 30, 2026, primarily resulting from decreases in donation and credit card reward expenses and losses on sale of fixed assets, partially offset by an increase in advertising costs.

Previous wording

Our effective federal tax rate was 17.4% for the three months ended June 30, 2026 compared to 18.4% for the three months ended June 30, 2025, and was 17.6% for the six months ended June 30, 2026 compared to 18.6% for the same period in 2025. 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 19.0% for the three months ended September 30, 2026 compared to 17.8% for the three months ended September 30, 2025, and was 18.0% for the nine months ended September 30, 2026 compared to 18.3% for the same period in 2025. 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 Colorado, Idaho, Iowa, Missouri, Montana, Oregon, and South Dakota. Our effective state tax rate was 5.1% for the three months ended June 30, 2026 compared to 4.9% for the three months ended June 30, 2025 and was 4.8% and 5.2% for the six months ended June 30, 2026 and 2025, respectively.

Current wording

State income tax applies primarily to pretax earnings generated within Colorado, Idaho, Iowa, Missouri, Montana, Oregon, and South Dakota. Our effective state tax rate was stable at 5.0% for the three months ended September 30, 2026 and for the three months ended September 30, 2025 and was 4.9% and 5.1% for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Total assets decreased $755.6 million, or 2.8%, to $25,885.0 million as of June 30, 2026, from $26,640.6 million as of December 31, 2025, primarily due to decreases in loans and cash and cash equivalents which were partially offset by an increase in investment securities. Significant fluctuations in balance sheet accounts are discussed below. More information regarding the results as of December 31, 2025 can be found in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

Total assets decreased $871.0 million, or 3.3%, to $25,769.6 million as of September 30, 2026, from $26,640.6 million as of December 31, 2025, primarily due to decreases in loans and cash and cash equivalents which were partially offset by an increase in investment securities. Significant fluctuations in balance sheet accounts are discussed below. More information regarding the results as of December 31, 2025 can be found in our Annual Report on Form 10-K for the year ended December 31, 2025.

Previous 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, obligations of U.S. government agencies, U.S. government agency commercial mortgage-backed securities, U.S. agency 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, obligations of U.S. government agencies, U.S. government agency commercial mortgage-backed securities, U.S. agency government residential mortgage-backed securities, U.S. government agency collateralized mortgage obligations, collateralized loan obligations, 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 96.4% and 95.1% of the investment portfolio’s available-for-sale and held-to-maturity segments, respectively, at June 30, 2026.

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 96.3% and 94.5% of the investment portfolio’s available-for-sale and held-to-maturity segments, respectively, at September 30, 2026.

Previous wording

Investment securities increased $355.4 million, or 4.7%, to $7,985.6 million, or 30.9% of total assets, as of June 30, 2026, from $7,630.2 million, or 28.6% of total assets, as of December 31, 2025. The increase was primarily resulting from purchases of investment securities, partially offset by pay-downs, maturities, called securities, and a $33.9 million decrease in fair market values during the period.

Current wording

Investment securities increased $415.0 million, or 5.4%, to $8,045.2 million, or 31.2% of total assets, as of September 30, 2026, from $7,630.2 million, or 28.6% of total assets, as of December 31, 2025. The increase primarily resulted from purchases of investment securities, partially offset by pay-downs, maturities, called securities, and a $181.5 million decrease in fair market values during the period.

Previous wording

As of June 30, 2026 and December 31, 2025, the estimated duration of our investment portfolio was 3.2 and 3.3 years, respectively.

Current wording

As of September 30, 2026 and December 31, 2025, the estimated duration of our investment portfolio was 3.3 years.

Previous wording

As of June 30, 2026 and December 31, 2025, we had $5,078.3 million and $5,645.8 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 $462.1 million as of June 30, 2026, and were attributable to changes in interest rates. At June 30, 2026 and December 31, 2025, 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 $0.1 million and $0.5 million, respectively.

Current wording

As of September 30, 2026 and December 31, 2025, we had $4,773.8 million and $5,645.8 million, respectively, of investment securities that had been in a continuous loss position for more than twelve months. Gross unrealized losses on these securities attributable to changes in interest rates totaled $581.8 million and $443.2 million, respectively, as of September 30, 2026 and December 31, 2025. At September 30, 2026 and December 31, 2025, 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 $0.1 million and $0.5 million, respectively.