GLACIER BANCORP, INC. (GBCI)

CIK: 0000868671. SIC: 6022 State Commercial Banks. Latest 10-K as of: 2026-02-25.

SIC breadcrumb: Finance, Insurance, And Real Estate > Depository Institutions > SIC 6022 State Commercial Banks

SEC company page: https://www.sec.gov/edgar/browse/?CIK=868671. Latest filing source: 0000868671-26-000023.

Selected Fundamentals

Metric	Value	Unit	FY	Filed
Revenue	1,295,797,000	USD	2025	2026-02-25
Net income	239,028,000	USD	2025	2026-02-25
Assets	31,978,063,000	USD	2025	2026-02-25

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000868671.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Revenue	344,153,000	375,022,000	468,996,000	546,177,000	627,064,000	681,074,000	829,640,000	1,017,655,000	1,139,850,000	1,295,797,000
Net income	121,131,000	116,377,000	181,878,000	210,544,000	266,400,000	284,757,000	303,202,000	222,927,000	190,144,000	239,028,000
Diluted EPS	1.59	1.50	2.17	2.38	2.81	2.86	2.74	2.01	1.68	1.99
Assets	9,450,600,000	9,706,349,000	12,115,484,000	13,683,999,000	18,504,206,000	25,940,645,000	26,635,375,000	27,742,629,000	27,902,987,000	31,978,063,000
Liabilities	8,333,731,000	8,507,292,000	10,599,630,000	11,723,266,000	16,197,165,000	22,763,023,000	23,792,070,000	24,722,348,000	24,679,133,000	27,764,242,000
Stockholders' equity	1,116,869,000	1,199,057,000	1,515,854,000	1,960,733,000	2,307,041,000	3,177,622,000	2,843,305,000	3,020,281,000	3,223,854,000	4,213,821,000
Net margin	35.20%	31.03%	38.78%	38.55%	42.48%	41.81%	36.55%	21.91%	16.68%	18.45%

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-01. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000868671.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarter	End Date	Revenue	Net Income	Diluted EPS	Method
2022-Q2	2022-06-30			0.69	reported discrete quarter
2022-Q3	2022-09-30			0.72	reported discrete quarter
2023-Q1	2023-03-31			0.55	reported discrete quarter
2023-Q2	2023-06-30	247,365,000	54,955,000	0.50	reported discrete quarter
2023-Q3	2023-09-30	264,906,000	52,445,000	0.47	reported discrete quarter
2023-Q4	2023-12-31	273,496,000	54,316,000		derived Q4 = FY annual - nine-month YTD
2024-Q1	2024-03-31	279,402,000	32,627,000	0.29	reported discrete quarter
2024-Q2	2024-06-30	273,834,000	44,708,000	0.39	reported discrete quarter
2024-Q3	2024-09-30	289,578,000	51,055,000	0.45	reported discrete quarter
2024-Q4	2024-12-31	297,036,000	61,754,000		derived Q4 = FY annual - nine-month YTD
2025-Q1	2025-03-31	289,925,000	54,568,000	0.48	reported discrete quarter
2025-Q2	2025-06-30	308,115,000	52,781,000	0.45	reported discrete quarter
2025-Q3	2025-09-30	325,003,000	67,900,000	0.57	reported discrete quarter
2025-Q4	2025-12-31	372,754,000	63,779,000		derived Q4 = FY annual - nine-month YTD
2026-Q1	2026-03-31	362,337,000	82,144,000	0.63	reported discrete quarter

Quarterly Charts

Macro Cross-References

CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
UNRATE - Unemployment Rate
FEDFUNDS - Federal Funds Effective Rate
CES0500000003 - Average Hourly Earnings of All Employees, Total Private
DFEDTARU - Federal Funds Target Range - Upper Limit
DFEDTARL - Federal Funds Target Range - Lower Limit
DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
PCEPI - Personal Consumption Expenditures: Chain-type Price Index
PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
PPIACO - Producer Price Index by Commodity: All Commodities
T10YIE - 10-Year Breakeven Inflation Rate
U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
PAYEMS - All Employees, Total Nonfarm
CIVPART - Labor Force Participation Rate
EMRATIO - Employment-Population Ratio
UNEMPLOY - Unemployed
CE16OV - Employment Level
ICSA - Initial Claims
JTSJOL - Job Openings: Total Nonfarm
JTSQUR - Quits: Total Nonfarm
GDPC1 - Real Gross Domestic Product
A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
INDPRO - Industrial Production: Total Index
TCU - Capacity Utilization: Total Index
HOUST - New Privately-Owned Housing Units Started: Total Units
PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
RSAFS - Advance Retail Sales: Retail Trade
PCE - Personal Consumption Expenditures
DSPIC96 - Real Disposable Personal Income
PSAVERT - Personal Saving Rate
M2SL - M2
BOPGSTB - U.S. International Trade in Goods and Services: Balance
MSPUS - Median Sales Price of Houses Sold for the United States
HSN1F - New One Family Houses Sold: United States
RHORUSQ156N - Homeownership Rate in the United States
TTLCONS - Total Construction Spending: Total Construction in the United States
RRVRUSQ156N - Rental Vacancy Rate in the United States
TOTALSL - Total Consumer Credit Owned and Securitized
REVOLSL - Revolving Consumer Credit Owned and Securitized
DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
GDP - Gross Domestic Product
GPDI - Gross Private Domestic Investment
GCE - Government Consumption Expenditures and Gross Investment
PCEC - Personal Consumption Expenditures
NETEXP - Net Exports of Goods and Services
GFDEBTN - Federal Debt: Total Public Debt
GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
FYFSD - Federal Surplus or Deficit
FGRECPT - Federal Government Current Receipts
FGEXPND - Federal Government: Current Expenditures
MANEMP - All Employees, Manufacturing
USCONS - All Employees, Construction
USTRADE - All Employees, Retail Trade
USFIRE - All Employees, Financial Activities
USGOVT - All Employees, Government
AWHAETP - Average Weekly Hours of All Employees, Total Private
DGORDER - Manufacturers' New Orders: Durable Goods
NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
BUSINV - Total Business Inventories
EXPGS - Exports of Goods and Services
IMPGS - Imports of Goods and Services
IR - Import Price Index (End Use): All Commodities
PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0000868671-26-000053.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-05-01. Report date: 2026-03-31.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following management’s discussion and analysis is intended to provide a more comprehensive review of the Company’s operating results and financial condition than can be obtained from reading the Consolidated Financial Statements alone. The discussion should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in “Part I. Item 1. Financial Statements.”

FORWARD-LOOKING STATEMENTS

This Form 10-Q may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “will” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are based on assumptions that are subject to change. The following factors, among others, including additional factors identified in the sections titled “Risk Factors,” “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” as applicable, in this report and in the Company’s 2025 Annual Report on Form 10-K, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements:

•risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;

•changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;

•legislative or regulatory changes, including the possibility of increases in FDIC insurance rates and assessments, changes in the review and regulation of bank mergers, or increases or changes in banking and consumer protection regulations, that may adversely affect the Company’s business and strategies;

•risks related to overall economic conditions, including the impact on the economy of an uncertain interest rate environment, inflationary pressures, recently passed legislation and the potential for significant additional changes in economic and trade policies in the current administration;

•risks to the Company’s business and the business of the Company’s customers arising from current or future tariffs or other trade restrictions, labor or supply chain issues, change in labor force, or geopolitical instability, including the wars in Iran and Ukraine, further conflicts in the Middle East, and potential for future conflicts or disruptions in other parts of the world;

•risks associated with the Company’s ability to negotiate, complete, and successfully integrate acquisitions;

•costs or difficulties related to the completion and integration of future or recently completed acquisitions;

•impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;

•reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;

•deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company's ability to obtain and maintain customers;

•changes in the competitive landscape, including as may result from new market entrants, additional competition from internet-based financial institutions operating nationally, or further consolidation in the financial services industry, resulting in increased competition, including the creation of larger competitors with greater financial resources;

•risks presented by public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;

•Risks related to rapidly evolving artificial intelligence technologies;

•risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;

•material failure, potential interruption or breach in security of the Company’s systems or changes in technology which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;

•risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;

•success in managing risks involved in any of the foregoing; and

•effects of any reputational damage to the Company resulting from any of the foregoing.

47

Forward looking statements speak only as of the date of this Form 10-Q. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measures

Certain financial measures and ratios the Company presents are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (“GAAP”). The Company refers to these financial measures and ratios as “non-GAAP financial measures.” A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is provided within this Form 10Q. The Company considers the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and in evaluating period-to-period comparisons. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performance by excluding certain income or intangible items that the Company believes are not indicative of its primary business operating results.

These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and investors should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures presented may differ from non-GAAP financial measures used by the Company’s peers or other companies. The Company compensates for these differences by providing the equivalent GAAP measures whenever the Company presents the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Financial Highlights

At or for the Three Months ended

(Dollars in thousands, except per share and market data)

Mar 31,

2026

Dec 31,

2025

Mar 31,

2025

Operating results

Net income

$

82,144 

63,779 

54,568 

Basic earnings per share

$

0.63 

0.49 

0.48 

Diluted earnings per share

$

0.63 

0.49 

0.48 

Operating diluted earnings per share 1

$

0.70 

0.69 

0.47 

Dividends declared per share

$

0.33 

0.33 

0.33 

Market value per share

Closing

$

44.67 

44.05 

44.22 

High

$

53.99 

49.56 

52.81 

Low

$

41.87 

39.90 

43.18 

Selected ratios and other data

Number of common stock shares outstanding

130,124,378

129,971,712

113,517,944

Average outstanding shares - basic

130,052,858

129,950,587

113,451,199

Average outstanding shares - diluted

130,242,765

130,145,104

113,546,365

Return on average assets (annualized)

1.05 

%

0.78 

%

0.80 

%

Return on average equity (annualized)

7.82 

%

6.05 

%

6.77 

%

Efficiency ratio

63.05 

%

61.04 

%

65.49 

%

Loan to deposit ratio

85.18 

%

85.26 

%

83.64 

%

Number of full time equivalent employees

4,139

4,087

3,457

Number of locations

282

281

227

Number of ATMs

337

337

286

48

______________________________

1 Represents a non-GAAP financial measure. Supplemental “Non-GAAP Financial Measures and Reconciliations” tables are provided to reconcile the most directly comparable financial measure calculated and presented in accordance with GAAP.

The Company reported net income of $82.1 million for the current quarter, an increase of $18.4 million, or 29 percent, from the prior quarter net income of $63.8 million and an increase of $27.6 million, or 51 percent, from the prior year first quarter net income of $54.6 million. Diluted earnings per share for the current quarter was $0.63 per share, an increase of $0.14 per share, or 29 percent, from the prior quarter diluted earnings per share of $0.49 and an increase of $0.15 per share, or 31 percent, from the prior year first quarter diluted earnings per share of $0.48. Diluted operating earnings per share for the current quarter was $0.70 per share, an increase of $0.01 per share, or 1 percent, from the prior quarter diluted operating earnings per share of $0.69 and an increase of $0.23 per share, or 49 percent, from the prior year first quarter diluted operating earnings per share of $0.47. The current quarter included $8.9 million in acquisition-related expenses and $2.8 million of compensation from acquisition-related employment agreements.

Market Conditions

The current macroeconomic and geopolitical environment is subject to a number of uncertainties, including geopolitical conflicts, tariffs (or the threat thereof) or other changes in trade policies, capital markets volatility, and inflation. These and other factors may contribute to slower or negative economic growth and a challenging business environment for banking customers. The Company continues to monitor the changing macroeconomic and geopolitical environment and any potential future negative impact on our financial condition or results of operations. For more information about these risks, see “Part II, Item 1A, Risk Factors” below.”

Financial Condition Analysis

Assets

The following table summarizes the Company’s assets as of the dates indicated:

$ Change from

(Dollars in thousands)

Mar 31,

2026

Dec 31,

2025

Mar 31,

2025

Dec 31,

2025

Mar 31,

2025

Cash and cash equivalents

$

1,385,237 

1,235,261 

981,485 

149,976 

403,752 

Debt securities, available-for-sale

3,585,531 

4,007,512 

4,172,312 

(421,981)

(586,781)

Debt securities, held-to-maturity

3,058,662 

3,110,216 

3,261,575 

(51,554)

(202,913)

Total debt securities

6,644,193 

7,117,728 

7,433,887 

(473,535)

(789,694)

Loans receivable 1

Residential real estate

2,167,860 

2,457,907 

1,850,079 

(290,047)

317,781 

Commercial real estate

13,918,178 

13,565,512 

10,952,809 

352,666 

2,965,369 

Other commercial

3,466,863 

3,497,829 

3,121,477 

(30,966)

345,386 

Home equity

1,048,971 

977,206 

920,132 

71,765 

128,839 

Other consumer

431,791 

429,342 

374,021 

2,449 

57,770 

Loans receivable

21,033,663 

20,927,796 

17,218,518 

105,867 

3,815,145 

Allowance for credit losses

(255,771)

(255,319)

(210,400)

(452)

(45,371)

Loans receivable, net

20,777,892 

20,672,477 

17,008,118 

105,415 

3,769,774 

Other assets

2,926,760 

2,952,597 

2,435,389 

(25,837)

491,371 

Total assets

$

31,734,082 

31,978,063 

27,858,879 

(243,981)

3,875,203 

______________________________

1     In connection with the current quarter core system conversion from the acquisition of Guaranty Bancshares, Inc. and its wholly owned subsidiary, Guaranty Bank & Tru

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-25. Report date: 2025-12-31.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion is intended to provide a more comprehensive review of the Company’s operating results and financial condition from management’s perspective than can be obtained from reading the Consolidated Financial Statements alone. The information includes management’s assessment of material information relevant to the Company’s financial condition and results of operations, material events and uncertainties that are reasonably likely to cause reported information not to be indicative of future operating results or financial condition, and material financial and statistical information that the Company believes will enhance the investors’ understanding of the Company and its financial results. The discussion should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in “Item 8. Financial Statements and Supplementary Data.”

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “will,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those factors set forth under “Risk Factors” and in other sections in this Annual Report on Form 10-K, or the documents incorporated by reference:

•risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;

•changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;

•legislative or regulatory changes, including the possibility of increases in FDIC insurance rates and assessments, changes in the review and regulation of bank mergers, or increases or changes in banking and consumer protection regulations, that may adversely affect the Company’s business and strategies;

•risks related to overall economic conditions, including the impact on the economy of a current or future government shutdown, an uncertain interest rate environment, inflationary pressures, future or recently passed legislation and the potential for significant additional changes in economic and trade policies in the current administration;

•risks to the Company’s business and the business of the Company’s customers arising from current or future tariffs or other trade restrictions, labor or supply chain issues, changes in labor force, or geopolitical instability, including the war in Ukraine, conflicts in the Middle East, and the potential for future conflicts or disruptions in other parts of the world;

•risks associated with the Company’s ability to negotiate, complete, and successfully integrate acquisitions;

•costs or difficulties related to the completion and integration of future or recently completed acquisitions;

•impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;

•reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;

•deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company's ability to obtain and maintain customers;

•changes in the competitive landscape, including as may result from new market entrants, additional competition from internet-based financial institutions operating nationally, or further consolidation in the financial services industry, resulting in increased competition, including the creation of larger competitors with greater financial resources;

•risks presented by public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;

•risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;

•material failure, potential interruption or breach in security of the Company’s systems or changes in technology which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;

•risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;

•success in managing risks involved in any of the foregoing; and effects of any reputational damage to the Company resulting from any of the foregoing.

Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in “Item 1A. Risk Factors.” Please take into account that forward-looking statements speak only as of the date of this Annual Report on Form 10-K (or documents incorporated by reference, if applicable). Given the described uncertainties and risks, the Company cannot guarantee its future performance or results of operations and you should not place undue reliance on these forward-looking statements. The Company does not undertake any obligation to publicly correct, revise, or update any forward-looking

23

statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement, except as may be required under federal securities laws.

FIVE YEAR SELECTED FINANCIAL DATA

Selected Financial Data

The selected financial data of the Company is derived from the Company’s historical audited financial statements and related notes. The information set forth below should be read in conjunction with “Item 8. Financial Statements and Supplementary Data” contained elsewhere in this Annual Report on Form 10-K.

December 31,

Compounded Annual

Growth Rate

(Dollars in thousands, except per share data)

2025

2024

2023

2022

2021

1-Year

5-Year

Selected Statements of Financial Condition Information

Total assets

$

31,978,063 

$

27,902,987 

$

27,742,629 

$

26,635,375 

$

25,940,645 

14.6 

%

4.3 

%

Debt securities

7,117,728

7,540,052

8,288,130

9,022,359

10,370,013

(5.6)

%

(7.3)

%

Loans receivable, net

20,672,477

17,055,808

16,005,325

15,064,529

13,259,366

21.2 

%

9.3 

%

Allowance for credit losses

(255,319)

(206,041)

(192,757)

(182,283)

(172,665)

23.9 

%

8.1 

%

Goodwill and intangibles

1,483,552

1,102,500

1,017,263

1,026,994

1,037,652

34.6 

%

7.4 

%

Deposits

24,591,096

20,546,994

19,929,167

20,606,555

21,337,249

19.7 

%

2.9 

%

Securities sold under agreements to repurchase

2,084,113

1,777,475

1,486,850

945,916

1,020,794

17.3 

%

15.3 

%

Federal Home Loan Bank advances

440,000

1,800,000

—

1,800,000

—

(75.6)

%

n/m

 FRB Bank Term Funding

—

—

2,740,000

—

—

n/m

n/m

Stockholders’ equity

4,213,821

3,223,854

3,020,281

2,843,305

3,177,622

30.7 

%

5.8 

%

Equity per share

32.42

28.43

27.24

25.67

28.71

14.0 

%

2.5 

%

Equity as a percentage of total assets

13.2 

%

11.6 

%

10.9 

%

10.7 

%

12.3 

%

14.1 

%

1.5 

%

________________________

n/m - not measurable

Years ended December 31,

Compounded Annual

Growth Rate

(Dollars in thousands, except per share data)

2025

2024

2023

2022

2021

1-Year

5-Year

Summary Statements of Operations

Interest income

$

1,295,797 

$

1,139,850 

$

1,017,655 

$

829,640 

$

681,074 

13.7 

%

13.7 

%

Interest expense

406,757 

435,218 

325,973 

41,261 

18,558 

(6.5)

%

85.4 

%

Net interest income

889,040 

704,632 

691,682 

788,379 

662,516 

26.2 

%

6.1 

%

Provision for credit losses

71,400 

28,306 

14,795 

19,963 

23,076 

152.2 

%

25.3 

%

Non-interest income

141,385 

128,446 

118,079 

120,732 

144,820 

10.1 

%

(0.5)

%

Non-interest expense

668,777 

578,468 

527,358 

518,868 

434,822 

15.6 

%

9.0 

%

Income before income taxes

290,248 

226,304 

267,608 

370,280 

349,438 

28.3 

%

(3.6)

%

Federal and state income tax expense

51,220 

36,160 

44,681 

67,078 

64,681 

41.6 

%

(4.6)

%

Net income

$

239,028 

$

190,144 

$

222,927 

$

303,202 

$

284,757 

25.7 

%

(3.4)

%

Basic earnings per share

$

2.00 

$

1.68 

$

2.01 

$

2.74 

$

2.87 

19.0 

%

(7.0)

%

Diluted earnings per share

$

1.99 

$

1.68 

$

2.01 

$

2.74 

$

2.86 

18.5 

%

(7.0)

%

Dividends declared per share

$

1.32 

$

1.32 

$

1.32 

$

1.32 

$

1.37 

— 

%

(0.7)

%

24

At or for the Years ended December 31,

(Dollars in thousands)

2025

2024

2023

2022

2021

Selected Ratios and Other Data

Return on average assets

0.81

%

0.68

%

0.81

%

1.15

%

1.33

%

Return on average equity

6.59

%

6.02

%

7.64

%

10.43

%

11.08

%

Dividend payout ratio

66.00

%

78.57

%

65.67

%

48.18

%

47.74

%

Average equity to average asset ratio

12.31

%

11.33

%

10.65

%

11.01

%

11.99

%

Total capital (to risk-weighted assets)

14.76

%

14.49

%

14.61

%

14.02

%

14.21

%

Tier 1 capital (to risk-weighted assets)

12.71

%

12.69

%

12.85

%

12.34

%

12.49

%

Common Equity Tier 1 (to risk-weighted assets)

12.71

%

12.69

%

12.85

%

12.34

%

12.49

%

Tier 1 capital (to average assets)

9.36

%

8.93

%

8.71

%

8.79

%

8.64

%

Net interest margin on average earning assets (tax-equivalent)

3.32

%

2.77

%

2.73

%

3.27

%

3.42

%

Efficiency ratio 1

62.50

%

66.71

%

62.85

%

54.64

%

51.35

%

Allowance for credit losses as a percent of loans

1.22

%

1.19

%

1.19

%

1.20

%

1.29

%

Allowance for credit losses as a percent of nonperforming loans

373

%

774

%

799

%

557

%

255

%

Non-performing assets as a percentage of subsidiary assets

0.22

%

0.10

%

0.09

%

0.12

%

0.26

%

Non-performing assets

$68,895

27,786

25,631

32,742

67,691

Loans originated

$6,528,926

5,151,138

4,449,350

8,039,623

8,551,419

Number of full time equivalent employees

4,087 

3,441 

3,294 

3,390 

3,436 

Number of locations

281 

227 

221 

221 

224 

______________________________

1 Non-interest expense before OREO expenses, core deposit intangibles amortization, goodwill impairment charges, and non-recurring expense items as a percentage of tax-equivalent net interest income and non-interest income, excluding gains or losses on sale of investments, OREO income, and non-recurring income items.

25

YEAR ENDED DECEMBER 31, 2025 COMPARED TO DECEMBER 31, 2024

Highlights and Overview

The Company experienced a strong performance year with an overall increase in net income of 26 percent over the prior year. The year also included two strategic acquisitions with a total of $4.7 billion in assets. The acquisitions expanded the Company’s footprint in existing and new market areas, including its first entrance into the state of Texas. The Company’s total assets exceeded $30 billion at year end which was a milestone for the Company.

Net income for the current year was $239 million, an increase of $48.9 million, or 26 percent, over the prior year net income of $190 million. The increase was primarily driven by the increase in net interest income which more than offset the increase in non-interest expense. Diluted earnings per share for the year was $1.99, an increase of 18 percent, from the 2024 diluted earnings per share of $1.68. Net interest income of $889 million for 2025 increased $184 million, or 26 percent, over 2024 and was primarily driven by increased interest income. Non-interest expense of $669 million for 2025 increased $90.3 million, or 16 percent, during the current year and was primarily driven by increased operating expenses from the current year acquisitions and a $6.7 million increase in acquisition-related expenses. The Company’s increase in credit loss expense of $43.1 million during the current year was primarily driven by a $43.9 million provision for credit losses associated with the current year acquisitions.

The Company's net interest margin for 2025 was 3.32 percent, a 55 basis points increase from the net interest margin of 2.77 percent from 2024, which was primarily driven by the increased loan yields and decreased funding costs combined with a shift in earning asset mix to higher yielding loans and a shift in funding liabilities to lower cost deposits. The earning asset yield of 4.81 percent for the current year increased 37 basis points over the prior year and the total cost of funding yield of 1.60 percent for the current year decreased 19 basis points over the prior year.

The Company ended the year at $31.978 billion in assets, which was a $4.075 billion, or 15 percent, increase over the prior year end and was primarily driven by the increase in the loan portfolio. Loan growth was $3.666 billion, or 21 percent, during 2025 which was driven by both acquisitions and internal loan growth. Total deposits of $24.591 billion increased $4.044 billion, or 20 percent, from the prior year end and was driven by both acquisitions and internal deposit growth. Stockholders’ equity increased $990 million, or $3.99 per share, which was the combined result of earnings retention, $759 million of Company common stock issued for acquisitions and the decrease in the unrealized loss on AFS debt securities in 2025. The Company declared quarterly dividends totaling $1.32 per share during 2025 and 2024.

The Company’s credit risk quality remains at historically low levels, ending the current year with $68.9 million in non-performing assets, or 0.22 percent of subsidiary assets, compared to $27.8 million, or 0.10 percent of subsidiary assets, at prior year end. Net charge-offs for 2025 remained low at 0.06 percent of loans compared to 0.08 percent of loans during the prior year. The Company also continues to maintain an adequate allowance for credit losses at 1.22 percent of loans at year end 2025 compared to 1.19 at prior year end.

During 2025, the Company acquired Guaranty Bancshares, Inc., the parent company of Guaranty Bank & Trust, N.A., a leading community bank headquartered in Mount Pleasant, Texas with total assets of $3.357 billion. In 2025, the Company also acquired Bank of Idaho Holding Co., the bank holding company for Bank of Idaho with total assets of $1.364 billion. For additional information on the acquisitions, see Note 23 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

Looking forward, the Company believes its future performance will depend on many factors including economic conditions in the markets the Company serves, interest rate changes, the level of competition for deposits and loans, loan quality and the ability to increase loans, the impact and successful integration of acquisitions, and managing regulatory requirements and expenses.

26

Financial Highlights

At or for the Years ended

(Dollars in thousands, except per share and market data)

December 31,

2025

December 31,

2024

Operating results

Net income

$

239,028 

190,144 

Basic earnings per share

$

2.00 

1.68 

Diluted earnings per share

$

1.99 

1.68 

Dividends declared per share

$

1.32 

1.32 

Market value per share

Closing

$

44.05 

50.22 

High

$

52.81 

60.67 

Low

$

36.76 

34.35 

Selected ratios and other data

Number of common stock shares outstanding

129,971,712

113,401,955

Average outstanding shares - basic

119,753,227

113,170,157

Average outstanding shares - diluted

119,935,056

113,243,427

Return on average assets

0.81

%

0.68

%

Return on average equity

6.59

%

6.02

%

Efficiency ratio

62.50

%

66.71

%

Dividend payout ratio

66.00

%

78.57

%

Loan to deposit ratio

85.26

%

84.17

%

Number of full time equivalent employees

4,087 

3,441 

Number of locations

281 

227 

Number of automated teller machines (“ATMs”)

337 

285 

27

Financial Condition Analysis

Assets

The following table summarizes the Company’s assets as of the dates indicated: 

(Dollars in thousands)

December 31, 2025

December 31, 2024

$ Change

% Change

Cash and cash equivalents

$

1,235,261 

$

848,408 

$

386,853 

46

%

Debt securities, available-for-sale

4,007,512 

4,245,205 

(237,693)

(6

%)

Debt securities, held-to-maturity

3,110,216 

3,294,847 

(184,631)

(6

%)

Total debt securities

7,117,728 

7,540,052 

(422,324)

(6

%)

Loans receivable

Residential real estate

2,457,907 

1,858,929 

598,978 

32

%

Commercial real estate

13,565,512 

10,963,713 

2,601,799 

24

%

Other commercial

3,497,829 

3,119,535 

378,294 

12

%

Home equity

977,206 

930,994 

46,212 

5

%

Other consumer

429,342 

388,678 

40,664 

10

%

Loans receivable

20,927,796 

17,261,849 

3,665,947 

21

%

Allowance for credit losses

(255,319)

(206,041)

(49,278)

24

%

Loans receivable, net

20,672,477 

17,055,808 

3,616,669 

21

%

Other assets

2,952,597 

2,458,719 

493,878 

20

%

Total assets

$

31,978,063 

$

27,902,987 

$

4,075,076 

15

%

The Company continues to maintain a strong cash position of $1.235 billion at December 31, 2025, which was an increase of $387 million, or 46 percent, over the prior year. Total debt securities of $7.118 billion at December 31, 2025 decreased $422 million, or 6 percent, from the prior year end. Debt securities represented 22 percent of total assets at December 31, 2025 compared to 27 percent at December 31, 2024.

The loan portfolio of $20.928 billion at December 31, 2025 increased $3.666 billion, or 21 percent, during 2025. Excluding the Guaranty and BOID acquisitions, the loan portfolio increased $488 million, or 3 percent, during 2025 and the loan category with the largest dollar increase during 2025 was commercial real estate, which increased $474 million, or 4 percent, from the prior year end.

28

Liabilities

The following table summarizes the Company’s liabilities as of the dates indicated:

(Dollars in thousands)

December 31, 2025

December 31, 2024

$ Change

% Change

Deposits

Non-interest bearing deposits

$

7,314,779 

$

6,136,709 

$

1,178,070 

19

%

NOW and DDA accounts

6,236,551 

5,543,512 

693,039 

13

%

Savings accounts

3,158,939 

2,845,124 

313,815 

11

%

Money market deposit accounts

3,948,201 

2,878,213 

1,069,988 

37

%

Certificate accounts

3,928,550 

3,139,821 

788,729 

25

%

Core deposits, total

24,587,020 

20,543,379 

4,043,641 

20

%

Wholesale deposits

4,076 

3,615 

461 

13

%

Deposits, total

24,591,096 

20,546,994 

4,044,102 

20

%

Securities sold under agreements to repurchase

2,084,113 

1,777,475 

306,638 

17

%

Federal Home Loan Bank advances

440,000 

1,800,000 

(1,360,000)

(76

%)

Other borrowed funds

51,473 

62,062 

(10,589)

(17

%)

Finance lease liabilities

28,808 

21,279 

7,529 

35

%

Subordinated debentures

187,492 

133,105 

54,387 

41

%

Other liabilities

381,260 

338,218 

43,042 

13

%

Total liabilities

$

27,764,242 

$

24,679,133 

$

3,085,109 

13

%

Total deposits of $24.591 billion at December 31, 2025 increased $4.044 billion, or 20 percent, from the prior year end. Excluding acquisitions, total deposits increased $259 million, or 1 percent, from the prior year end.

Non-interest bearing deposits of $7.315 billion at December 31, 2025 increased $1.178 billion, or 19 percent, from the prior year end. Excluding acquisitions, total non-interest bearing deposits increased $74.8 million or 1 percent, from the prior year end. Non-interest bearing deposits represented 30 percent of total deposits at December 31, 2025 and December 31, 2024, respectively.

Federal Home Loan Bank (“FHLB”) advances of $440 million decreased $1.360 billion, or 76 percent, from the prior year end. Subordinated debentures of $187 million increased $54.4 million, or 41 percent, from the prior year and included an increase of $23.8 million and $39.6 million from the acquisitions of BOID and Guaranty, respectively.

Stockholders’ Equity

The following table summarizes the stockholders’ equity balances as of the dates indicated: 

(Dollars in thousands, except per share data)

December 31, 2025

December 31, 2024

$ Change

% Change

Common equity

$

4,380,931 

$

3,533,150 

$

847,781 

24

%

Accumulated other comprehensive loss

(167,110)

(309,296)

142,186 

(46

%)

Total stockholders’ equity

4,213,821 

3,223,854 

989,967 

31

%

Goodwill and core deposit intangible, net

(1,483,552)

(1,102,500)

(381,052)

35

%

Tangible stockholders’ equity

$

2,730,269 

$

2,121,354 

$

608,915 

29

%

Stockholders’ equity to total assets

13.18 

%

11.55 

%

Tangible stockholders’ equity to total tangible assets

8.95 

%

7.92 

%

Book value per common share

$

32.42 

$

28.43 

$

3.99 

14

%

Tangible book value per common share

$

21.01 

$

18.71 

$

2.30 

12

%

Tangible stockholders’ equity of $2.730 billion at December 31, 2025 increased $609 million, or 29 percent, compared to the prior year end and was primarily due to the $759 million of Company common stock issued in connection with the acquisitions of BOID and Guaranty and a $142 million decrease in other comprehensive loss. The increase was partially offset by the increase in goodwill and core deposit intangible associated with the BOID and Guaranty acquisitions. Tangible book value per common share of $21.01 at December 31, 2025 increased $2.30 per share, or 12 percent, from the prior year end.

29

Results of Operations

In this section, the Company’s results of operations are discussed for the year ended December 31, 2025 compared to the year ended December 31, 2024. For a discussion of the year ended December 31, 2024 compared to the year ended December 31, 2023, please refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Income Summary

The following table summarizes income for the time periods indicated:

Years ended

$ Change

% Change

(Dollars in thousands)

December 31,

2025

December 31,

2024

Net interest income

Interest income

$

1,295,797 

$

1,139,850 

$

155,947 

14

%

Interest expense

406,757 

435,218 

(28,461)

(7

%)

Total net interest income

889,040 

704,632 

184,408 

26

%

Non-interest income

Service charges and other fees

85,070 

78,894 

6,176 

8

%

Miscellaneous loan fees and charges

20,443 

18,694 

1,749 

9

%

Gain on sale of loans

18,205 

16,855 

1,350 

8

%

Gain on sale of investments

— 

30 

(30)

(100

%)

Other income

17,667 

13,973 

3,694 

26

%

Total non-interest income

141,385 

128,446 

12,939 

10

%

Total income

$

1,030,425 

$

833,078 

$

197,347 

24

%

Net interest margin (tax-equivalent)

3.32 

%

2.77 

%

Net Interest Income

Net interest income of $889 million for 2025 increased $184 million, or 26 percent, from the prior year and was primarily driven by increased interest income and decreased interest expense. Interest income of $1.296 billion for 2025 increased $156 million, or 14 percent, from the prior year and was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The loan yield was 5.93 percent for 2025, an increase of 32 basis points from the prior year loan yield of 5.61 percent.

Interest expense of $407 million for 2025 decreased $28 million, or 7 percent, from the prior year and was primarily the result of lower interest rates on deposits and a decrease in higher cost borrowings. Deposit cost (including non-interest bearing deposits) was 1.25 percent for 2025, which was a decrease of 9 basis points from the prior year deposit costs of 1.34 percent. The total funding cost (including non-interest bearing deposits) for 2025 was 1.60 percent, which was a decrease of 19 basis points over the prior year funding cost of 1.79 percent.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 2025 was 3.32 percent, a 55 basis points increase from the net interest margin of 2.77 percent for the prior year. Excluding the 5 basis points from discount accretion, the core net interest margin was 3.27 percent in the current year compared to 2.72 percent in the prior year. The increase in net interest margin from the prior year was primarily driven by increased loan yields and decreased funding costs combined with a shift in earning asset mix to higher yielding loans and a shift in funding liabilities to lower cost deposits.

Non-interest Income

Non-interest income of $141 million for 2025 increased $12.9 million, or 10 percent, over the prior year. Service charges and other fees of $85.1 million for 2025 increased $6.2 million, or 8 percent, over the prior year. Gain on sale of residential loans of $18.2 million for 2025 increased by $1.4 million, or 8 percent, over the prior year. Other income of $17.7 million for 2025 increased $3.7 million over the prior year. Included in the current year other income was $2.8 million of income related to bank owned life insurance proceeds.

30

Non-interest Expense

The following table summarizes non-interest expense for the periods indicated:

Years ended

$ Change

% Change

(Dollars in thousands)

December 31,

2025

December 31,

2024

Compensation and employee benefits

$

393,295 

$

336,906 

$

56,389 

17

%

Occupancy and equipment

55,617 

47,055 

8,562 

18

%

Advertising and promotions

17,767 

16,132 

1,635 

10

%

Data processing

42,744 

36,887 

5,857 

16

%

Other real estate owned and foreclosed assets

292 

217 

75 

35

%

Regulatory assessments and insurance

22,675 

24,194 

(1,519)

(6

%)

Core deposit intangibles amortization

15,887 

12,757 

3,130 

25

%

Other expenses

120,500 

104,320 

16,180 

16

%

Total non-interest expense

$

668,777 

$

578,468 

$

90,309 

16

%

Total non-interest expense of $669 million for 2025 increased $90.3 million, or 16 percent, over the same period in the prior year and was primarily driven by increased costs from recent acquisitions. Compensation and employee benefits expense of $393 million in 2025 increased $56.4 million, or 17 percent, over the prior year and was primarily driven by annual salary increases and staffing increases from acquisitions. Regulatory assessment and insurance expense of $22.7 million for 2025 decreased $1.5 million, or 6 percent, from the prior year primarily as a result of adjustments to the FDIC special assessment. Other expenses of $121 million for 2025 increased $16.2 million, or 16 percent, from the prior year. Included in other expenses was $16.6 million of acquisition-related expenses in the current year compared to $9.9 million in the prior year. Other expenses also included gains from the sale of former branch facilities of $2.8 million in the current year and $5.6 million in the prior year.

Provision for Credit Losses

The following table summarizes the provision for credit losses on the loan portfolio, net charge-offs and select ratios relating to the provision for credit losses on loans for the previous eight quarters:

(Dollars in thousands)

Provision

for Credit Losses on Loans

Net Charge-Offs

(Recoveries)

ACL

as a Percent

of Loans

Accruing

Loans 30-89

Days Past Due

as a Percent of

Loans

Non-Performing

Assets to

Total Sub-sidiary Assets

Fourth quarter 2025

$

32,491 

$

6,368 

1.22

%

0.38

%

0.22

%

Third quarter 2025

5,192 

2,914 

1.22

%

0.21

%

0.19

%

Second quarter 2025

18,009 

1,645 

1.22

%

0.29

%

0.17

%

First quarter 2025

6,154 

1,795 

1.22

%

0.27

%

0.14

%

Fourth quarter 2024

6,041 

5,170 

1.19

%

0.19

%

0.10

%

Third quarter 2024

6,981 

2,766 

1.19

%

0.33

%

0.10

%

Second quarter 2024

5,066 

2,890 

1.19

%

0.29

%

0.06

%

First quarter 2024

9,091 

3,072 

1.19

%

0.37

%

0.09

%

The provision for credit loss expense was $71.4 million for 2025, an increase of $43.1 million, or 152 percent, over the same period in the prior year. Included in the current year provision for credit losses was $43.9 million from current year acquisitions and included in the prior year provision for credit losses was $9.7 million from acquisitions in the prior year. Net charge-offs for 2025 were $12.7 million compared to $13.9 million in 2024.

Efficiency Ratio

The efficiency ratio was 62.50 percent for 2025 compared to 66.71 percent for 2024. The improvement from the prior year was primarily attributable to the increase in net interest income that outpaced the increase in non-interest expense.

31

ADDITIONAL MANAGEMENT’S DISCUSSION AND ANALYSIS

Investment Activity

The Company’s investment securities primarily consist of debt securities classified as either available-for-sale (“AFS”) or held-to-maturity (“HTM”). Equity securities primarily consist of capital stock issued by the FHLB of Des Moines. For additional information on debt and equity securities, see Notes 1 and 2 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

Debt Securities

Debt securities classified as AFS are carried at estimated fair value and debt securities classified as HTM are carried at amortized cost. Unrealized gains or losses, net of tax, on available-for-sale debt securities are reflected as an adjustment to other comprehensive income. The Company’s debt securities are summarized below:

December 31, 2025

December 31, 2024

(Dollars in thousands)

Carrying Amount

Percent

Carrying Amount

Percent

Available-for-sale

U.S. government and federal agency

$

255,930 

4

%

$

468,433 

6

%

U.S. government sponsored enterprises

312,488 

4

%

310,154 

4

%

State and local governments

164,084 

2

%

68,680 

1

%

Corporate bonds

33,949 

1

%

14,503 

1

%

Residential mortgage-backed securities

2,215,119 

31

%

2,355,516 

31

%

Commercial mortgage-backed securities

1,025,942 

14

%

1,027,919 

14

%

Total available-for-sale

4,007,512 

56

%

4,245,205 

57

%

Held-to-maturity

U.S. government and federal agency

865,696 

12

%

859,432 

11

%

State and local governments

1,587,673 

23

%

1,619,850 

21

%

Residential mortgage-backed securities

656,847 

9

%

815,565 

11

%

Total held-to-maturity

3,110,216 

44

%

3,294,847 

43

%

Total debt securities

$

7,117,728 

100

%

$

7,540,052 

100

%

The Company’s debt securities were primarily comprised of U.S. government and federal agency and mortgage-backed securities. State and local government securities are largely exempt from federal income tax and the Company’s federal statutory income tax rate of 21 percent is used in calculating the tax-equivalent yields on the tax-exempt securities. Mortgage-backed securities largely consists of short, weighted-average life U.S. agency guaranteed residential and commercial mortgage pass-through securities and to a lesser extent, short, weighted-average life U.S. agency guaranteed residential collateralized mortgage obligations. Combined, the mortgage-backed securities provide the Company with ongoing liquidity as scheduled and pre-paid principal is received on the securities.

State and local government securities carry different risks that are not as prevalent in other security types. The Company evaluates the investment grade quality of these securities in accordance with regulatory guidance. Investment grade securities are those where the issuer has an adequate capacity to meet the financial commitments under the security for the projected life of the investment. An issuer has an adequate capacity to meet financial commitments if the risk of default by the obligor is low and the full and timely payment of principal and interest are expected. In assessing credit risk, the Company may use credit ratings from Nationally Recognized Statistical Rating Organizations (“NRSRO”) entities such as S&P and Moody’s as support for the evaluation; however, they are not solely relied upon. There have been no significant differences in the Company’s internal evaluation of the creditworthiness of any issuer when compared with the ratings assigned by the NRSROs.

The following table stratifies the state and local government securities by the associated NRSRO ratings. The highest issued rating was used to categorize the securities in the table for those securities where the NRSRO ratings were not at the same level.

32

December 31, 2025

December 31, 2024

(Dollars in thousands)

Amortized

Cost

Fair

Value

Amortized

Cost

Fair

Value

S&P: AAA / Moody’s: Aaa

$

470,591 

430,538 

429,267 

379,793 

S&P: AA+, AA, AA- / Moody’s: Aa1, Aa2, Aa3

1,228,601 

1,093,684 

1,207,309 

1,046,083 

S&P: A+, A, A- / Moody’s: A1, A2, A3

45,339 

45,083 

48,143 

47,345 

Not rated by either entity

8,447 

8,170 

6,868 

6,617 

Total

$

1,752,978 

1,577,475 

1,691,587 

1,479,838 

State and local government securities largely consist of both taxable and tax-exempt general obligation and revenue bonds. The following table stratifies the state and local government securities by the associated security type.

December 31, 2025

December 31, 2024

(Dollars in thousands)

Amortized

Cost

Fair

Value

Amortized

Cost

Fair

Value

General obligation - unlimited

$

368,095 

348,356 

348,129 

322,414 

General obligation - limited

204,370 

185,810 

172,537 

151,445 

Revenue

1,142,091 

1,008,112 

1,135,421 

974,076 

Certificate of participation

35,134 

31,854 

35,443 

31,846 

Other

3,288 

3,343 

57 

57 

Total

$

1,752,978 

1,577,475 

1,691,587 

1,479,838 

The following table outlines the five states in which the Company owns the highest concentrations of state and local government securities.

December 31, 2025

December 31, 2024

(Dollars in thousands)

Amortized

Cost

Fair

Value

Amortized

Cost

Fair

Value

New York

$

367,478 

332,746 

370,189 

329,252 

Texas

204,775 

194,031 

118,219 

104,938 

California

108,915 

101,273 

111,324 

101,021 

Washington

86,633 

78,960 

92,198 

82,872 

Colorado

77,665 

68,872 

79,987 

69,527 

All other states

907,512 

801,593 

919,670 

792,228 

Total

$

1,752,978 

1,577,475 

1,691,587 

1,479,838 

33

The following table presents the carrying amount and weighted-average yield of AFS and HTM debt securities by contractual maturity at December 31, 2025. Weighted-average yields are based upon the amortized cost of securities and are calculated using the interest method which takes into consideration premium amortization, discount accretion and mortgage-backed securities’ prepayment provisions. Weighted-average yields on tax-exempt debt securities exclude the related federal income tax benefit.

One Year

or Less

After One through Five Years

After Five through Ten Years

After

Ten Years

Mortgage-Backed Securities 1

Total

(Dollars in thousands)

Amount

Yield

Amount

Yield

Amount

Yield

Amount

Yield

Amount

Yield

Amount

Yield

Available-for-sale

U.S. government and federal agency

$

193,130 

1.39

%

$

55,664 

3.66

%

$

1,052 

4.81

%

$

6,084 

3.80

%

$

— 

—

%

$

255,930 

1.96

%

U.S. government sponsored enterprises

241,761 

1.32

%

70,727 

1.56

%

— 

—

%

— 

—

%

— 

—

%

312,488 

1.37

%

State and local governments

15,550 

1.79

%

26,341 

2.45

%

73,623 

2.65

%

48,570 

3.72

%

— 

—

%

164,084 

2.85

%

Corporate bonds

11,993 

5.22

%

14,902 

5.49

%

6,328 

5.58

%

726 

0.46

%

— 

—

%

33,949 

5.30

%

Residential mortgage-backed securities

— 

—

%

— 

—

%

— 

—

%

— 

—

%

2,215,119 

1.41

%

2,215,119 

1.41

%

Commercial mortgage-backed securities

— 

—

%

— 

—

%

— 

—

%

— 

—

%

1,025,942 

3.64

%

1,025,942 

3.64

%

Total available-for-sale

462,434 

1.47

%

167,634 

2.73

%

81,003 

2.90

%

55,380 

3.69

%

3,241,061 

2.10

%

4,007,512 

2.09

%

Held-to-maturity

U.S. government and federal agency

288,833 

1.08

%

576,863 

1.20

%

— 

—

%

— 

—

%

— 

—

%

865,696 

1.16

%

State and local governments

8,923 

3.65

%

108,034 

3.63

%

274,562 

3.37

%

1,196,154 

3.02

%

— 

—

%

1,587,673 

3.13

%

Residential mortgage-backed securities

— 

—

%

— 

—

%

— 

—

%

— 

—

%

656,847 

0.99

%

656,847 

0.99

%

Total held-to-maturity

297,756 

1.16

%

684,897 

1.58

%

274,562 

3.37

%

1,196,154 

3.02

%

656,847 

0.99

%

3,110,216 

2.31

%

Total debt securities

$

760,190 

1.35

%

$

852,531 

1.81

%

$

355,565 

3.26

%

$

1,251,534 

3.05

%

$

3,897,908 

1.92

%

$

7,117,728 

2.11

%

______________________________

1 Mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds.

Based on an analysis of its AFS debt securities with unrealized losses as of December 31, 2025, the Company determined their decline in value was unrelated to credit loss and was primarily the result of interest rate changes and market spreads subsequent to acquisition. The fair value of the debt securities is expected to recover as payments are received and the debt securities approach maturity. In addition, the Company determined an insignificant amount of credit losses is expected on the HTM debt securities portfolio; therefore, no ACL has been recognized at December 31, 2025.

34

Lending Activity

The Company focuses its lending activities primarily on the following types of loans: 1) first-mortgage, conventional loans secured by residential properties, particularly single-family; 2) commercial lending, including agriculture and public entities; and 3) installment lending for consumer purposes (e.g., home equity, automobile, etc.).

Loan information is based on the Company’s loan segments, which are based on the purpose of the loan, unless otherwise noted as a regulatory classification. Supplemental information regarding the Company’s loan portfolio and credit quality based on regulatory classification is provided in the section captioned “Loans by Regulatory Classification” included in “Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The regulatory classification of loans is based primarily on the type of collateral for the loans.

The following table summarizes the Company’s loan portfolio as of the dates indicated:

December 31, 2025

December 31, 2024

(Dollars in thousands)

Amount

Percent

Amount

Percent

  Residential real estate

$

2,457,907 

12

%

$

1,858,929 

11

%

Commercial real estate

13,565,512 

65

%

10,963,713 

64

%

Other commercial

3,497,829 

17

%

3,119,535 

18

%

Home equity

977,206 

5

%

930,994 

6

%

Other consumer

429,342 

2

%

388,678 

2

%

Loans receivable

20,927,796 

101

%

17,261,849 

101

%

Allowance for credit losses

(255,319)

(1

%)

(206,041)

(1

%)

Loans receivable, net

$

20,672,477 

100

%

$

17,055,808 

100

%

The stated maturities or first repricing term (if applicable) for the loan portfolio at December 31, 2025 was as follows:

(Dollars in thousands)

Residential

Real Estate

Commercial

Consumer

and Other

Total

Variable rate maturing or repricing

In one year or less

$

507,135 

5,162,116 

748,330 

6,417,581 

After one through five years

1,005,376 

5,726,899 

246,816 

6,979,091 

After five through fifteen years

187,612 

174,758 

36 

362,406 

Thereafter

— 

— 

— 

— 

Fixed rate maturing

In one year or less

242,651 

1,856,951 

162,160 

2,261,762 

After one through five years

254,730 

3,105,926 

204,401 

3,565,057 

After five through fifteen years

259,794 

1,005,237 

7,048 

1,272,079 

Thereafter

609 

31,454 

37,757 

69,820 

Total

$

2,457,907 

17,063,341 

1,406,548 

20,927,796 

Residential Real Estate Lending

The Company’s residential lending activities consist of the origination of both construction and permanent loans on residential real estate. The Company actively solicits residential real estate loan applications from real estate brokers, contractors, existing customers, customer referrals, and online applications. The Company’s lending policies generally limit the maximum loan-to-value ratio on residential mortgage loans to 80 percent of the lesser of the appraised value or purchase price. Policies allow for higher loan-to-values with appropriate risk mitigation such as documented compensating factors, credit enhancement, and other factors. For loans held for sale, the Company complies with each investor’s loan-to-value guidelines. The Company also provides interim construction financing for single-family dwellings. These loans are supported by a term take-out commitment that may be subject to certain contingencies.

35

Consumer Land or Lot Loans

The Company originates land and lot acquisition loans to borrowers who intend to construct their primary residence on the respective land or lot. These loans are generally for a term of three to five years and are secured by the developed land or lot with the loan-to-value limited to the lesser of 75 percent of the appraised value or 75 percent of the cost.

Unimproved Land and Land Development Loans

Although the Company has originated very few unimproved land and land development loans since the economic downturn in 2008, the Company may originate such loans on properties intended for residential and commercial use where real estate market conditions show significant strength. These loans are typically made for a term of 18 months to two years and are secured by the developed property with a loan-to-value not to exceed the lesser of 75 percent of cost or 65 percent of the appraised discounted estimated bulk sale value upon completion of the improvements. The projects under development are inspected on a regular basis and advances are made on a percentage-of-completion basis. The loans are made to borrowers with real estate development experience and appropriate financial strength. Generally, the Company requires that a certain percentage of the development be pre-sold or that construction and term take-out commitments are in place prior to funding the loan. Loans made on unimproved land are generally made for a term of five to ten years with a loan-to-value not to exceed the lesser of 50 percent of appraised value or 50 percent of cost.

Residential Builder Guidance Lines

The Company provides Builder Guidance Lines that are comprised of pre-sold and spec-home construction and lot acquisition loans. The spec-home construction and lot acquisition loans are limited to a specific number and maximum amount. Generally, the individual loans will not exceed a one year maturity. The homes under construction are inspected on a regular basis and advances made on a percentage-of-completion basis.

Construction Loans

During the construction loan term, all construction loan collateral properties are inspected at least monthly, or more frequently as needed, until completion. Draws on construction loans are predicated upon the results of the inspection and advanced on a percentage-of-completion basis versus original budget percentages. When construction loans become non-performing and the associated project is not complete, the Company on a case-by-case basis makes the decision to advance additional funds or to initiate collection/foreclosure proceedings. Such decision includes obtaining “as-is” and “at completion” appraisals for consideration of potential increases or decreases in the collateral’s value. The Company also considers the increased costs of monitoring progress to completion, and the related collection/holding period costs should collateral ownership be transferred to the Company.

Commercial Real Estate Loans

Loans are made to purchase, construct and finance commercial real estate properties. These loans are generally made to borrowers who will own and occupy the property, but may include loans to finance investment or income properties. Commercial real estate loans generally have a loan-to-value up to the lesser of 75 percent of the appraised value or 75 percent of the cost and require a minimum 1.2 times debt service coverage margin.

Agricultural Lending

Agricultural lending is conducted on a conservative basis and consists of operating credits, term real estate loans for the acquisition or refinance of agricultural real estate or equipment, and term livestock loans for the acquisition or refinance of livestock. Loan-to-value on equipment, livestock and agricultural real estate is generally limited to 75 percent.

Home Equity Loans

Home equity lines of credit are generally originated with maturity terms of 15 years. At origination, borrowers can choose a variable interest rate that changes quarterly, or after the first 3 or 5 years from the origination date. The draw period for home equity lines of credit usually exists from origination to maturity. During the draw period, the Company has home equity lines of credit where the borrowers pay interest only and home equity lines of credit where borrowers pay principal and interest.

Consumer Lending

The majority of consumer loans are secured by real estate, automobiles, or other assets. The Company intends to continue making such loans because of their short-term nature, generally between three months and five years. Moreover, interest rates on consumer loans are generally higher than on residential mortgage loans.

States and Political Subdivisions Lending

The Company lends directly to state and local political subdivisions. The loans are typically secured by the full faith and credit of the municipality or a specific revenue stream such as water or sewer fees.  In general, state and local political subdivision loans carry a low risk of default and offer other complementary business opportunities such as deposits and cash management. The loans are generally long-term in nature and interest on many of these loans is tax-exempt for federal income tax purposes.

36

Credit Risk Management

The Company is committed to a conservative management of the credit risk within the loan portfolio, including the early recognition of problem loans. The Company’s credit risk management includes stringent credit policies, individual loan approval limits, limits on concentrations of credit, and committee approval of larger loan requests. Management practices also include regular internal and external credit examinations, identification and review of individual loans and leases experiencing deterioration of credit quality, procedures for the collection of non-performing assets, quarterly monitoring of the loan portfolio, semi-annual review of loans by industry, and periodic stress testing of the loans secured by real estate. Federal and state regulatory safety and soundness examinations are conducted annually.

The Company’s loan policy and credit administration practices establish standards and limits for all extensions of credit that are secured by interests in or liens on real estate, or made for the purpose of financing the construction of real property or other improvements. Ongoing monitoring and review of the loan portfolio is based on current information, including: the borrowers’ and guarantors’ creditworthiness, value of the real estate and other collateral, the project’s performance against projections, and monthly inspections by Company employees or external parties until the real estate project is complete.

Monitoring of the junior lien and home equity lines of credit portfolios includes evaluating payment delinquency, collateral values, bankruptcy notices and foreclosure filings. Additionally, the Company places junior lien mortgages and junior lien home equity lines of credit on non-accrual status when there is evidence that the associated senior lien is 90 days past due or is in the process of foreclosure, regardless of the junior lien delinquency status.

Due to the recent trends in the banking industry, there has been increased risk associated with commercial real estate loans, including with respect to the higher vulnerability of these credits to pressure as interest rates remain elevated and market conditions in many large metropolitan areas continue to show signs of stress. The Company has limited exposure to the office building sector in central business districts as the office portfolio is generally diversified in suburban and rural markets with strong occupancy levels.

The Company maintains a practice of regular and ongoing loan reviews, stress tests, and sensitivity analyses to assess the level of risk in the loan portfolio. Loan reviews include monitoring past due rates, non-performing trends, concentrations, LTV’s, among other qualitative factors. Loan policies are robust and are updated as needed to meet the strategic and risk mitigation goals of the company.

The largest category of the Company’s loan portfolio is Commercial Real Estate (“CRE”). An additional breakdown of the Company’s CRE portfolio based on the use of the property follows:

December 31, 2025

(Dollars in thousands)

Owner Occupied

Non-Owner Occupied

Total

Percent of total CRE

Office

$

701,819 

$

894,540 

$

1,596,359 

11.8 

%

Retail

534,898 

943,711 

1,478,609

10.9 

%

Industrial and warehouse

845,214 

465,135 

1,310,349

9.7 

%

Multi-family

— 

1,246,632 

1,246,632

9.2 

%

Mini and RV Storage

20,063 

633,310 

653,373

4.8 

%

Agriculture real estate

740,858 

— 

740,858

5.5 

%

Hotel

— 

752,960 

752,960

5.6 

%

Medical and nursing

329,169 

311,758 

640,927

4.7 

%

Land

92,063 

569,789 

661,852

4.9 

%

Automotive and transportation

341,760 

68,772 

410,532

3.0 

%

Restaurant and entertainment

268,512 

113,896 

382,408

2.8 

%

Other commercial real estate

3,094,970 

595,683 

3,690,653

27.2 

%

Total commercial real estate

$

6,969,326 

$

6,596,186 

$

13,565,512 

100 

%

37

The following table summarizes the Company’s CRE portfolio by geographic location as of the dates indicated:

(Dollars in thousands)

December 31, 2025

Amount

Percent of total CRE

Montana

$

3,127,299 

23.1 

%

Utah

2,113,864 

15.6 

%

Idaho

1,916,550 

14.1 

%

Arizona

1,364,234 

10.1 

%

Texas

1,316,271 

9.7 

%

Colorado

1,131,223 

8.3 

%

Washington

988,627 

7.3 

%

Wyoming

840,252 

6.2 

%

Nevada

767,192 

5.7 

%

Total commercial real estate

$

13,565,512 

100 

%

The CRE portfolio is comprised of loans made to purchase, construct and finance commercial real estate properties. On average, the balances are small and geographically disbursed across our nine-state footprint. Specifically, our CRE portfolio has an average loan balance of $795 thousand with an average loan-to-value ratio (“LTV”) of 57% as of December 31, 2025.

Loan Approval Limits

Individual loan approval limits have been established for each lender based on the loan types and experience of the individual. There are four additional loan approval levels: 1) the Bank divisions’ Officer Loan Committees, consisting of senior lenders and members of senior management; 2) the Bank divisions’ advisory boards; 3) the Bank’s Executive Loan Committee, consisting of the Bank divisions’ senior loan officers and the Company’s Chief Credit Administrator; and 4) the Bank’s Board of Directors. Under banking laws, loans-to-one-borrower and related entities are limited to a prescribed percentage of the unimpaired capital and surplus of the Bank.

Interest Reserves

Interest reserves are used to periodically advance loan funds to pay interest charges on the outstanding balance of the related loan. As with any extension of credit, the decision to establish a loan-funded interest reserve upon origination of construction loans, including residential construction and land, lot and other construction loans, is based on prudent underwriting, including the feasibility of the project, expected cash flow, creditworthiness of the borrower and guarantors, and the protection provided by the real estate and other underlying collateral. Interest reserves provide an effective means for addressing the cash flow characteristics of construction loans. In response to the downturn in the housing market and potential impact upon construction lending, the Company discourages the creation or continued use of interest reserves.

Interest reserves are advanced provided the related construction loan is performing as expected. Loans with interest reserves may be extended, renewed or restructured only when the related loan continues to perform as expected and meets the prudent underwriting standards identified above. Such renewals, extension or restructuring are not permitted in order to keep the related loan current.

In monitoring the performance and credit quality of a construction loan, the Company assesses the adequacy of any remaining interest reserve, and whether the use of an interest reserve remains appropriate in the presence of emerging weakness and associated risks in the construction loan.

The ongoing accrual and recognition of uncollected interest as income continues only when facts and circumstances continue to reasonably support the contractual payment of principal or interest. Loans are typically designated as non-accrual when the collection of the contractual principal or interest is unlikely and has remained unpaid for ninety days or more. For such loans, the accrual of interest and its capitalization into the loan balance will be discontinued.

The Company had $450 million and $388 million of loans with remaining interest reserves of $33.7 million and $31.3 million as of December 31, 2025 and 2024, respectively. During 2025 and 2024, the Company extended, renewed or modified six loans and four loans, respectively, with interest reserves. Such loans had an aggregate outstanding principal balance of $20.5 million and $1.5 million as of December 31, 2025 and 2024, respectively. As of December 31, 2025, the Company had no construction loans with interest reserves that are currently non-performing or that are designated potential problem loans.

38

Loan Purchases, Sales, and Servicing

Fixed rate, long-term mortgage loans are generally sold in the secondary market. The Company is active in the secondary market, primarily through the origination of conventional, Rural Development, Federal Housing Administration and Department of Veterans Affairs residential mortgages. The sale of loans in the secondary mortgage market reduces the Company’s risk of holding long-term, fixed rate loans during periods of rising interest rates. In connection with conventional loan sales, the Company typically sells the majority of mortgage loans originated with servicing released. In certain circumstances, the Company strategically retains servicing and in the current year has been more active in retaining the servicing. For the loans that are sold with servicing retained, the Company records a servicing right asset that is subsequently amortized over the life of the loan. The servicing assets are also evaluated for impairment based on the fair value of the servicing asset compared to the carrying value.

The Company has also been active in generating commercial SBA loans, and other commercial loans, with a portion of those loans sold to investors. The Company has not originated any type of subprime mortgages, either for the loan portfolio or for sale to investors. In addition, the Company has not purchased debt securities collateralized with subprime mortgages. The Company does not actively purchase loans from other financial institutions, and substantially all of the Company’s loans receivable are with customers in the Company’s geographic market areas.

Loan Origination and Other Fees

In addition to interest earned on loans, the Company receives fees for originating loans. Loan fees generally are a percentage of the principal amount of the loan and are charged to the borrower, and are normally deducted from the proceeds of the loan. Loan origination fees are generally 1.0 to 1.5 percent on residential mortgages and 0.5 to 1.5 percent on commercial loans. Consumer loans generally require a fixed fee amount. The Company also receives other fees and charges relating to existing loans, which include charges and fees collected in connection with loan modifications.

Appraisal and Evaluation Process

The Company’s loan policy and credit administration practices have adopted and implemented the applicable legal and regulatory requirements, which establishes criteria for obtaining appraisals or evaluations (new or updated), including transactions that are otherwise exempt from the appraisal requirements.

Each of the Bank divisions monitor conditions, including supply and demand factors, in the real estate markets served so they can react quickly to changing market conditions to mitigate potential losses from specific credit exposures within the loan portfolio. Evidence of the following real estate market conditions and trends is obtained from lending personnel and third party sources:

•demographic indicators, including employment and population trends;

•foreclosures, vacancy, construction and absorption rates;

•property sales prices, rental rates, and lease terms;

•current tax assessments;

•economic indicators, including trends within the lending areas; and

•valuation trends, including discount and capitalization rates.

Third party information sources include federal, state, and local governments and agencies thereof, private sector economic data vendors, real estate brokers, licensed agents, sales, rental and foreclosure data tracking services.

The time between ordering an appraisal or evaluation and receipt from third party vendors is typically two to six weeks for residential property depending on geographic market and four to eight weeks for non-residential property. For real estate properties that are of highly specialized or limited use, significantly complex or large, additional time beyond the typical times may be required for new appraisals or evaluations (new or updated).

As part of the Company’s credit administration and portfolio monitoring practices, the Company’s regular internal and external credit examinations review a significant number of individual loan files. Appraisals and evaluations (new or updated) are reviewed to determine whether the timeliness, methods, assumptions, and findings are reasonable and in compliance with the Company’s loan policy and credit administration practices. Such reviews include the adequacy of the steps taken by the Company to ensure that the individuals who perform appraisals and evaluations (new or updated) are appropriately qualified and are not subject to conflicts of interest. If there are any deficiencies noted in the reviews, they are reported to Bank management and prompt corrective action is taken.

39

Non-performing Assets

The following table summarizes information regarding non-performing assets at the dates indicated:

At or for the Years ended

(Dollars in thousands)

December 31,

2025

December 31,

2024

December 31,

2023

Other real estate owned and foreclosed assets

$

411 

1,164 

1,503 

Accruing loans 90 days or more past due

5,997 

6,177 

3,312 

Non-accrual loans

62,487 

20,445 

20,816 

Total non-performing assets

$

68,895 

27,786 

25,631 

Non-performing assets as a percentage of subsidiary assets

0.22

%

0.10

%

0.09

%

ACL as a percentage of non-performing loans

373

%

774

%

799

%

Accruing loans 30-89 days past due

$

78,826 

32,228 

49,967 

U.S. government guarantees on loans included in

  non-performing assets

$

8,733 

748 

1,503 

Interest income 1

$

3,669 

1,142 

1,085 

______________________________

1Amounts represent estimated interest income that would have been recognized on loans accounted for on a non-accrual basis as of the end of each period had such loans performed pursuant to contractual terms.

Non-performing assets of $68.9 million at December 31, 2025 increased $41.1 million, or 148 percent, over the prior year end. Excluding $18.8 million from the acquisition of Guaranty, non-performing assets were $50.1 million, or 17 basis points as a percentage of subsidiary assets, at December 31, 2025.

Early stage delinquencies (accruing loans 30-89 days past due) of $78.8 million at December 31, 2025 increased $46.6 million from the prior year end. Excluding $10.0 million from the acquisition of Guaranty, early stage delinquencies were $68.8 million, or 0.37 percent of loans, at December 31, 2025, and increased $29.2 million from the prior quarter. Early stage delinquencies as a percentage of loans at December 31, 2025 were 0.38 percent compared to 0.19 percent for the prior year end and remain at historically low levels for the Company.

Most of the Company’s non-performing assets are secured by real estate, and based on the most current information available to management, including updated appraisals or evaluations (new or updated), the Company believes the value of the underlying real estate collateral is adequate to minimize significant charge-offs or losses to the Company. Through pro-active credit administration, the Company works closely with its borrowers to seek favorable resolution to the extent possible, thereby attempting to minimize net charge-offs or losses to the Company. With very limited exceptions, the Company does not disburse additional funds on non-performing loans. Instead, the Company proceeds to collection and foreclosure actions in order to reduce the Company’s exposure to loss on such loans.

For additional information on accounting policies relating to non-performing assets, see Note 1 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

40

Modified Loans

If a loan is modified in response to a borrower’s financial difficulties such modification is known as a modification to a borrower experiencing financial difficulty (“MBFD”), and if the underlying loan is characterized as a loan. Each modified loan is separately negotiated with the borrower and includes terms and conditions that reflect the borrower’s prospective ability to service their obligations as modified. The Company had MBFD loans of $14.8 million and $55.0 million at December 31, 2025 and 2024, respectively. For additional information on MBFDs, see Note 3 to the Consolidated Financial Statement in “Item 8. Financial Statements and Supplementary Data.”

Other Real Estate Owned and Foreclosed Assets

The book value of loans prior to the acquisition of collateral and transfer of the loans into other real estate owned (“OREO”) and other foreclosed assets during 2025 was $2.7 million. The fair value of the loan collateral acquired in foreclosure during 2025 was $2.4 million. The following table sets forth the changes in OREO for the periods indicated:

Years ended

(Dollars in thousands)

December 31,

2025

December 31,

2024

Balance at beginning of period

$

1,164 

1,503 

Additions

2,367 

880 

Write-downs

(76)

(16)

Sales

(3,044)

(1,203)

Balance at end of period

$

411 

1,164 

Allowance for Credit Losses - Loans Receivable

The following table summarizes the allocation of the ACL as of the dates indicated:

December 31, 2025

December 31, 2024

(Dollars in thousands)

ACL

Percent

of Loans in

Category

ACL

Percent

of Loans in

Category

Residential real estate

$

31,875 

12

%

$

25,181 

11

%

Commercial real estate

166,803 

65

%

138,545 

64

%

Other commercial

37,954 

15

%

24,400 

18

%

Home equity

11,645 

5

%

11,402 

5

%

Other consumer

7,042 

3

%

6,513 

2

%

Total

$

255,319 

100

%

$

206,041 

100

%

41

The following table summarizes the ACL experience for the periods indicated:

At or for the Years ended

(Dollars in thousands)

December 31,

2025

December 31,

2024

December 31,

2023

Balance at beginning of period

$

206,041 

$

192,757 

$

182,283 

Acquisitions

154 

3 

— 

Provision for credit losses

61,846 

27,179 

20,790 

Net (charge-offs) recoveries

Residential real estate

273 

(6)

(3)

Commercial real estate

(1,827)

(2,828)

(1,640)

Other commercial

(3,568)

(3,956)

(2,256)

Home equity

(28)

5 

38 

Other consumer

(7,572)

(7,113)

(6,455)

Net Charge-offs

(12,722)

(13,898)

(10,316)

Balance at end of period

$

255,319 

$

206,041 

$

192,757 

ACL as a percentage of total loans

1.22

%

1.19

%

1.19

%

Non-accrual loans as a percentage of

   total loans

0.30

%

0.12

%

0.13

%

ACL as a percentage of non-accrual loans

408.60

%

1,007.78

%

926.01

%

The following table summarizes net (charge-offs) recoveries as a percentage of average loans for the periods indicated:

December 31,

2025

December 31,

2024

December 31,

2023

Residential real estate

0.01 

%

— 

%

— 

%

Commercial real estate

(0.02)

%

(0.03)

%

(0.02)

%

Other commercial

(0.11)

%

(0.13)

%

(0.08)

%

Home equity

— 

%

— 

%

— 

%

Other consumer

(1.91)

%

(1.79)

%

(1.64)

%

Total net charge-offs

(0.07)

%

(0.08)

%

(0.07)

%

The ACL as a percentage of total loans outstanding at December 31 2025 was 1.22 percent, which was an increase of 3 basis points from the prior year end. The Company’s ACL of $255 million is considered by management to be adequate to absorb the estimated credit losses from any segment of its loan portfolio based upon management’s best estimate of current expected credit losses within the existing portfolio of loans. Should any of the factors considered by management in making this estimate change, the Company’s estimate of current expected credit losses could also change, which could affect the level of future provision for credit losses related to loans. For the periods ended December 31, 2025, 2024, and 2023, the Company believes the ACL is commensurate with the risk in the Company’s loan portfolio and is directionally consistent with the change in the quality of the Company’s loan portfolio. During 2025 and 2024, provision for credit losses exceeded the charge-offs, net of recoveries, by $49.1 million and $13.3 million, respectively.

At the end of each quarter, the Company analyzes its loan portfolio and maintains an ACL at a level that is appropriate and determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Determining the adequacy of the ACL involves a high degree of judgment and is inevitably imprecise as the risk of loss is difficult to quantify. The ACL methodology is designed to reasonably estimate the probable credit losses within the Company’s loan portfolio. Accordingly, the ACL is maintained within a range of estimated losses. The determination of the ACL on loans, including credit loss expense and net charge-offs, is a critical accounting estimate that involves management’s judgments about the loan portfolio that impact credit losses, including the credit risk inherent in the loan portfolio, economic forecasts nationally and in the local markets in which the Company operates, trends and changes in collateral values, delinquencies, non-performing assets, net charge-offs, credit-related policies and personnel, and other factors.

42

In determining the allowance, the loan portfolio is separated into pools of loans that share similar risk characteristics which are the Company’s loan segments. The Company then derives estimated loss assumptions from its model by loan segment. The loss assumptions are then applied to each segment of loan to estimate the ACL on the pooled loans. For any loans that do not share similar risk characteristics, the estimated credit losses are determined on an individual loan basis and such loans primarily consist of non-accrual loans. An estimated credit loss is recorded on individually reviewed loans when the fair value of a collateral-dependent loan or the present value of the loan’s expected future cash flows (discounted at the loans original effective interest rate) is less than the amortized cost of the loan.

The Company provides commercial banking services to individuals, small to medium-sized businesses, community organizations and public entities from 281 locations, including 236 branches, across Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, Nevada, and Texas. The states in which the Company operates have diverse economies and markets that are tied to commodities (crops, livestock, minerals, oil and natural gas), tourism, real estate and land development and an assortment of industries, both manufacturing and service-related. Thus, the changes in the global, national, and local economies are not uniform across the Company’s geographic locations. The geographic dispersion of these market areas helps to mitigate the risk of credit loss. The Company’s model of eighteen Bank divisions with separate management teams is also a significant benefit in mitigating and managing the Company’s credit risk. This model provides substantial local oversight to the lending and credit management function and requires multiple reviews of larger loans before credit is extended.

The primary responsibility for credit risk assessment and identification of problem loans rests with the loan officer of the account. This continuous process of identifying non-performing loans is necessary to support management’s evaluation of the ACL adequacy. An independent loan review function verifying credit risk ratings evaluates the loan officer and management’s evaluation of the loan portfolio credit quality. The ACL evaluation is well documented and approved by the Company’s Board. In addition, the policy and procedures for determining the balance of the ACL are reviewed annually by the Company’s Board, the internal audit department, independent credit reviewers and state and federal bank regulatory agencies.

Although the Company continues to actively monitor economic trends and regulatory developments, no assurance can be given that the Company will not, in any particular period, sustain losses that are significant relative to the ACL amount, or that subsequent evaluations of the loan portfolio applying management’s judgment about then current factors will not require significant changes in the ACL. Under such circumstances, additional credit loss expense could result.

For additional information regarding the ACL, its relation to credit loss expense and risk related to asset quality, see Note 3 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

43

Loans by Regulatory Classification

Supplemental information regarding identification of the Company’s loan portfolio and credit quality based on regulatory classification is provided in the following tables. The regulatory classification of loans is based primarily on the type of collateral for the loans. There may be differences when compared to loan tables and loan amounts appearing elsewhere which reflect the Company’s internal loan segments which are based on the purpose of the loan.

The following table summarizes the Company’s loan portfolio by regulatory classification:

(Dollars in thousands)

December 31,

2025

December 31,

2024

$ Change

% Change

Custom and owner occupied construction

$

263,713 

$

242,844 

$

20,869 

9

%

Pre-sold and spec construction

255,542 

191,926 

63,616 

33

%

Total residential construction

519,255 

434,770 

84,485 

19

%

Land development

263,262 

197,369 

65,893 

33

%

Consumer land or lots

247,769 

187,024 

60,745 

32

%

Unimproved land

167,796 

113,532 

54,264 

48

%

Developed lots for operative builders

69,786 

61,661 

8,125 

13

%

Commercial lots

155,631 

99,243 

56,388 

57

%

Other construction

1,122,350 

693,461 

428,889 

62

%

Total land, lot, and other construction

2,026,594 

1,352,290 

674,304 

50

%

Owner occupied

3,950,726 

3,197,138 

753,588 

24

%

Non-owner occupied

4,859,173 

4,053,996 

805,177 

20

%

Total commercial real estate

8,809,899 

7,251,134 

1,558,765 

21

%

Commercial and industrial

1,649,101 

1,395,997 

253,104 

18

%

Agriculture

1,282,861 

1,024,520 

258,341 

25

%

1st lien

3,098,023 

2,481,918 

616,105 

25

%

Junior lien

106,205 

76,303 

29,902 

39

%

Total 1-4 family

3,204,228 

2,558,221 

646,007 

25

%

Multifamily residential

1,019,484 

895,242 

124,242 

14

%

Home equity lines of credit

1,076,201 

1,005,783 

70,418 

7

%

Other consumer

237,393 

209,457 

27,936 

13

%

Total consumer

1,313,594 

1,215,240 

98,354 

8

%

States and political subdivisions

964,591 

983,601 

(19,010)

(2

%)

Other

177,375 

183,894 

(6,519)

(4

%)

Total loans receivable, including loans held for sale

20,966,982 

17,294,909 

3,672,073 

21

%

Less loans held for sale 1

(39,186)

(33,060)

(6,126)

19

%

Total loans receivable

$

20,927,796 

$

17,261,849 

$

3,665,947 

21

%

______________________________

1 Loans held for sale are primarily 1st lien 1-4 family loans.

44

The following table summarizes the Company’s non-performing assets by regulatory classification:

Non-performing Assets,

by Loan Type

Non-

Accrual

Loans

Accruing

Loans 90

Days or 

More Past 

Due

OREO

(Dollars in thousands)

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2025

December 31,

2025

Custom and owner occupied construction

$

183 

198 

183 

— 

— 

Pre-sold and spec construction

919 

2,132 

919 

— 

— 

Total residential construction

1,102 

2,330 

1,102 

— 

— 

Land development

898 

966 

898 

— 

— 

Consumer land or lots

79 

78 

79 

— 

— 

Developed lots for operative builders

456 

531 

— 

456 

— 

Commercial lots

556 

47 

556 

— 

— 

Other construction

129 

— 

— 

— 

129 

Total land, lot and other construction

2,118 

1,622 

1,533 

456 

129 

Owner occupied

3,969 

2,979 

3,360 

609 

— 

Non-owner occupied

7,606 

2,235 

7,606 

— 

— 

Total commercial real estate

11,575 

5,214 

10,966 

609 

— 

Commercial and industrial

27,308 

2,069 

26,147 

1,143 

18 

Agriculture

3,549 

2,335 

2,436 

1,113 

— 

1st lien

15,816 

9,053 

13,583 

2,233 

— 

Junior lien

1,776 

315 

1,776 

— 

— 

Total 1-4 family

17,592 

9,368 

15,359 

2,233 

— 

Multifamily residential

395 

389 

395 

— 

— 

Home equity lines of credit

3,968 

3,465 

3,600 

213 

155 

Other consumer

1,229 

955 

949 

171 

109 

Total consumer

5,197 

4,420 

4,549 

384 

264 

Other

59 

39 

— 

59 

— 

Total

$

68,895 

27,786 

62,487 

5,997 

411 

45

The following table summarizes the Company’s accruing loans 30-89 days past due by regulatory classification:

Accruing 30-89 Days Delinquent Loans, by Loan Type

(Dollars in thousands)

December 31,

2025

December 31,

2024

$ Change

% Change

Custom and owner occupied construction

$

533 

$

969 

$

(436)

(45

%)

Pre-sold and spec construction

1,189 

564 

625 

111

%

Total residential construction

1,722 

1,533 

189 

12

%

Land development

3,994 

1,450 

2,544 

175

%

Consumer land or lots

1,162 

402 

760 

189

%

Unimproved land

— 

36 

(36)

(100

%)

Developed lots for operative builders

2,300 

214 

2,086 

975

%

Commercial lots

965 

— 

965 

n/m

Other construction

4,787 

— 

4,787 

n/m

Total land, lot and other construction

13,208 

2,102 

11,106 

528

%

Owner occupied

6,103 

2,867 

3,236 

113

%

Non-owner occupied

15,388 

5,037 

10,351 

205

%

Total commercial real estate

21,491 

7,904 

13,587 

172

%

Commercial and industrial

10,215 

6,194 

4,021 

65

%

Agriculture

2,390 

744 

1,646 

221

%

1st lien

19,699 

6,326 

13,373 

211

%

Junior lien

20 

214 

(194)

(91

%)

Total 1-4 family

19,719 

6,540 

13,179 

202

%

Multifamily residential

150 

— 

150 

n/m

Home equity lines of credit

5,415 

3,731 

1,684 

45

%

Other consumer

1,866 

1,775 

91 

5

%

Total consumer

7,281 

5,506 

1,775 

32

%

Other

2,650 

1,705 

945 

55

%

Total

$

78,826 

$

32,228 

$

46,598 

145

%

_________________

n/m - not measurable

46

The following table summarizes the Company’s charge-offs and recoveries by regulatory classification:

Net Charge-Offs (Recoveries), Years ended, By Loan Type

Charge-Offs

Recoveries

(Dollars in thousands)

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2025

Pre-sold and spec construction

$

— 

(4)

51 

51 

Total residential construction

— 

(4)

51 

51 

Land development

(358)

1,095 

— 

358 

Consumer land or lots

(5)

(22)

— 

5 

Unimproved land

— 

1,338 

— 

— 

Developed lots for operative builders

(8)

— 

— 

8 

Commercial lots

— 

319 

— 

— 

Total land, lot and other construction

(371)

2,730 

— 

371 

Owner occupied

(2)

(73)

— 

2 

Non-owner occupied

2,232 

2 

2,243 

11 

Total commercial real estate

2,230 

(71)

2,243 

13 

Commercial and industrial

2,104 

1,422 

3,056 

952 

Agriculture

(112)

64 

— 

112 

1st lien

(182)

32 

1 

183 

Junior lien

(38)

(65)

126 

164 

Total 1-4 family

(220)

(33)

127 

347 

Home equity lines of credit

43 

69 

106 

63 

Other consumer

1,600 

1,078 

1,922 

322 

Total consumer

1,643 

1,147 

2,028 

385 

Other

7,448 

8,643 

11,177 

3,729 

Total

$

12,722 

13,898 

18,682 

5,960 

47

Sources of Funds

The Company’s deposits have traditionally been the principal source of funds for use in lending and other business purposes. The Company also obtains funds from repayment of loans and debt securities, securities sold under agreements to repurchase (“repurchase agreements”), wholesale deposits, advances from FHLB, Federal Reserve facilities, and other borrowings. Loan repayments are a relatively stable source of funds, while interest bearing deposit inflows and outflows are significantly influenced by general interest rate levels and market conditions. Borrowings and advances may be used on a short-term basis to compensate for reductions in normal sources of funds such as deposit inflows at less than projected levels. Borrowings also may be used on a long-term basis to support expanded activities, match maturities of longer-term assets or manage interest rate risk.

Deposits

The Company has several deposit programs designed to attract both short-term and long-term deposits from the general public by providing a wide selection of accounts and rates. These programs include non-interest bearing deposit accounts and interest bearing deposit accounts such as NOW, DDA, savings, money market deposits, fixed rate certificates of deposit with maturities ranging from three months to five years, negotiated-rate jumbo certificates, and individual retirement accounts. These deposits are obtained primarily from individual and business residents in the Bank’s geographic market areas. Wholesale deposits are obtained through various programs and include brokered deposits classified as NOW, DDA, money market deposits and certificate accounts. The Company’s deposits are summarized below:

December 31, 2025

December 31, 2024

(Dollars in thousands)

Amount

Percent

Amount

Percent

Non-interest bearing deposits

$

7,314,779 

30

%

$

6,136,709 

30

%

NOW and DDA accounts

6,236,551 

25

%

5,543,512 

27

%

Savings accounts

3,158,939 

13

%

2,845,124 

14

%

Money market deposit accounts

3,948,201 

16

%

2,878,213 

14

%

Certificate accounts

3,928,550 

16

%

3,139,821 

15

%

Wholesale deposits

4,076 

—

%

3,615 

—

%

Total interest bearing deposits

17,276,317 

70

%

14,410,285 

70

%

Total deposits

$

24,591,096 

100

%

$

20,546,994 

100

%

Total estimated uninsured deposits were $8.111 billion and $6.544 billion at December 31, 2025 and December 31, 2024, respectively. The following table summarizes the estimated amounts outstanding at December 31, 2025 for uninsured time deposits according to the time remaining to maturity.

(Dollars in thousands)

Certificates

of Deposit

Within three months

$

791,458 

Three months to six months

400,206 

Seven months to twelve months

155,416 

Over twelve months

97,050 

Total

$

1,444,130 

For additional information on deposits, see Note 9 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

48

Borrowings

The Company borrows money through repurchase agreements. This process involves the selling of one or more of the securities in the Company’s investment portfolio and simultaneously entering into an agreement to repurchase the same securities at an agreed upon later date, typically overnight. A rate of interest is paid for the agreed period of time. The Bank enters into repurchase agreements with local municipalities, and certain customers, and has adopted procedures designed to ensure proper transfer of title and safekeeping of the underlying securities. In addition to retail repurchase agreements, the Company periodically enters into wholesale repurchase agreements as additional funding sources. The Company has not entered into reverse repurchase agreements.

The Bank is a member of the FHLB of Des Moines, which is one of eleven banks that comprise the FHLB system.  The Bank is required to maintain a certain level of activity-based stock in order to borrow or to engage in other transactions with the FHLB of Des Moines. Additionally, the Bank is subject to a membership capital stock requirement that is based upon an annual calculation tied to the total assets of the Bank. The borrowings are collateralized by eligible categories of loans and debt securities (principally, securities which are obligations of, or guaranteed by, the U.S. government and its agencies), provided certain standards related to credit-worthiness have been met. Advances are made pursuant to several different credit programs, each of which has its own interest rates and range of maturities. The Bank’s maximum amount of FHLB advances is limited to the lesser of a fixed percentage of the Bank’s total assets or the discounted value of eligible collateral. FHLB advances fluctuate to meet seasonal and other withdrawals of deposits and to expand lending or investment opportunities of the Company.

During the first quarter of 2023, the Federal Reserve Bank (“FRB”) offered a new Bank Term Funding Program (“BTFP”) for eligible depository institutions. The BTFP offered loans of up to one year in length to institutions pledging collateral eligible for purchase by the FRB in open market operations such as U.S. Treasuries, U.S. Agency securities, and U.S. agency mortgage-backed securities. These assets were valued at par value. During 2023 the Company borrowed $2.740 billion from the BTFP which enabled the Company to pay off higher rate FHLB advances and support its liquidity position at that time. In the first quarter of 2024, the Company paid off all of the BTFP borrowings through a combination of the FHLB borrowings, cash, and additional sources of liquidity.

Additionally, the Company has other sources of secured and unsecured borrowing lines from various sources that may be used from time to time. For additional information concerning the Company’s borrowings, see Note 10 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

Short-term borrowings

A critical component of the Company’s liquidity and capital resources is access to short-term borrowings to fund its operations. Short-term borrowings are accompanied by increased risks managed by the Bank’s Asset Liability Committee (“ALCO”) such as rate increases or unfavorable changes in terms which would make it more costly to obtain future short-term borrowings. The Company’s short-term borrowing sources include FHLB advances, federal funds purchased and retail and wholesale repurchase agreements. The Company also has access to the short-term discount window borrowing programs (i.e., primary credit) of the FRB as well as a line of credit with a large national banking institution. FHLB advances and certain other short-term borrowings may be renewed as long-term borrowings to decrease certain risks such as liquidity or interest rate risk; however, the reduction in risks are weighed against the increased cost of funds and other risks.

Subordinated Debentures

In addition to funds obtained in the ordinary course of business, the Company formed or acquired unconsolidated financing subsidiaries for the purpose of issuing or holding trust preferred securities that entitle the investor to receive cumulative cash distributions thereon. Subordinated debentures were issued in conjunction with the trust preferred securities and the terms of the subordinated debentures and trust preferred securities are the same. For regulatory capital purposes, the trust preferred securities are included in Tier 2 capital at December 31, 2025. The subordinated debentures outstanding as of December 31, 2025 were $187 million, including fair value adjustments from acquisitions. For additional information regarding the subordinated debentures, see Note 11 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

49

Liquidity Risk

In the normal course of business, the Company has commitments that require significant cash availability for customer deposits outflows, repurchase agreements, borrowed funds, lease obligations, off-balance sheet obligations, operating expenses and other contractual obligations. The source of funding for such requirements includes loan repayments, customer deposit inflows, borrowings, revenue from operations, and capital resources. Liquidity risk is the possibility that the Company will not be able to fund present and future obligations as they come due because of an inability to liquidate assets or obtain adequate funding at a reasonable cost.

The objective of liquidity management is to maintain cash flows adequate to meet current and future needs for credit demand, deposit withdrawals, maturing liabilities and corporate operating expenses. Effective liquidity management entails three elements:

1.assessing on an ongoing basis, the current and expected future needs for funds, and ensuring that sufficient funds or access to funds exist to meet those needs at the appropriate time;

2.providing for an adequate cushion of liquidity to meet unanticipated cash flow needs that may arise from potential adverse circumstances ranging from high probability/low severity events to low probability/high severity; and

3.balancing the benefits between providing for adequate liquidity to mitigate potential adverse events and the cost of that liquidity.

The Company has a wide range of versatility in managing the liquidity and asset/liability mix. The Bank’s ALCO meets regularly to assess liquidity risk, among other matters. The Company monitors liquidity and contingency funding alternatives through management reports of liquid assets (e.g., debt securities), both unencumbered and pledged, as well as borrowing capacity, both secured and unsecured, including off-balance sheet funding sources. The Company evaluates its potential funding needs across alternative scenarios and maintains contingency funding plans consistent with the Company’s access to diversified sources of contingent funding.

The following table identifies certain liquidity sources and capacity available to the Company as of the dates indicated:

(Dollars in thousands)

December 31,

2025

December 31,

2024

FHLB advances

Borrowing capacity

$

4,872,433 

4,355,976 

Amount utilized

(440,000)

(1,800,000)

Letters of credit and other pledged collateral

(10,224)

(6,165)

Amount available

$

4,422,209 

2,549,811 

FRB discount window

Borrowing capacity

$

2,048,309 

1,860,932 

Amount utilized

— 

— 

Amount available

$

2,048,309 

1,860,932 

Unsecured lines of credit available

$

530,000 

525,000 

Unencumbered debt securities

U.S. government and federal agency

$

90,783 

608,979 

U.S. government sponsored enterprises

13,758 

301,990 

State and local governments

929,248 

907,832 

Corporate bonds

33,949 

14,503 

Residential mortgage-backed securities

160,623 

615,310 

Commercial mortgage-backed securities

794,427 

837,169 

Total unencumbered debt securities 1

$

2,022,788 

3,285,783 

____________________________

1 Total unencumbered debt securities at December 31, 2025, included $1.2 billion classified as AFS and $828.1 million classified as HTM. Total unencumbered debt securities at December 31, 2024, included $1.6 billion classified as AFS, and $1.6 billion classified as HTM. AFS debt securities are reported at fair value and HTM debt securities are reported at amortized cost.

50

Contractual Obligations and Off-Balance Sheet Arrangements

In the normal course of business, there may be various outstanding commitments to obtain funding and to extend credit, such as letters of credit and unfunded loan commitments, which are not reflected in the accompanying condensed consolidated financial statements. The Company assessed the off-balance sheet credit exposures as of December 31, 2025 and determined its allowance for credit losses (“ACL”) of $30.0 million was adequate to absorb the estimated credit losses. Such ACL is included in other liabilities. For additional information regarding the Company’s ACL, see “Allowance for Credit Losses - Loans Receivable” above.

Capital Resources

Maintaining capital strength continues to be a long-term objective of the Company. High levels of capital are necessary to sustain growth, provide protection against unanticipated declines in asset values, and to safeguard the funds of depositors. Capital is also a source of funds for loan demand and enables the Company to effectively manage its assets and liabilities. The Company has the capacity to issue 234,000,000 shares of common stock of which 129,971,712 have been issued as of December 31, 2025. The Company also has the capacity to issue 1,000,000 shares of preferred stock of which none have been issued as of December 31, 2025. Conversely, the Company may in the future decide to utilize a portion of its strong capital position, as it has done in the past, to repurchase shares of its outstanding common stock, depending on market price and other relevant considerations.

The Federal Reserve has adopted capital adequacy guidelines that are used to assess the adequacy of capital in supervising a bank holding company. The guidelines require the Company to hold a 2.5 percent capital conservation buffer designed to absorb losses during periods of economic stress. As of December 31, 2025, management believes the Company and Bank meet all capital adequacy requirements to which they are subject and there are no conditions or events subsequent to this date that management believes have changed the Company’s or Bank’s risk-based capital category.

The following table illustrates the Bank’s regulatory capital ratios and the Federal Reserve’s capital adequacy guidelines as of December 31, 2025:

Total Capital (To Risk-Weighted Assets)

Tier 1 Capital (To Risk-Weighted Assets)

Common Equity Tier 1 (To Risk-Weighted Assets)

Leverage Ratio/

Tier 1 Capital (To Average Assets)

Glacier Bank actual regulatory ratios

13.91

%

12.67

%

12.67

%

9.33

%

Minimum capital requirements

8.00

%

6.00

%

4.50

%

4.00

%

Minimum capital requirements plus capital

  conservation buffer

10.50

%

8.50

%

7.00

%

N/A

Well capitalized requirements

10.00

%

8.00

%

6.50

%

5.00

%

For additional information regarding regulatory capital, see Note 13 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

51

Federal and State Income Taxes

The Company files a consolidated federal income tax return using the accrual method of accounting. All required tax returns have been timely filed. Financial institutions are subject to the provisions of the Internal Revenue Code of 1986, as amended, in the same general manner as other corporations. The federal statutory corporate income tax rate is 21 percent.

Within the Company’s geographic footprint under Montana, Idaho, Utah, Colorado and Arizona law, financial institutions are subject to a corporation income tax, which incorporates or is substantially similar to applicable provisions of the Internal Revenue Code. The corporation income tax is imposed on federal taxable income, subject to certain adjustments. State taxes are incurred at the rate of 6.75 percent in Montana, 5.30 percent in Idaho, 4.50 percent in Utah, 4.40 percent in Colorado and 4.90 percent in Arizona. Washington, Wyoming, Nevada, and Texas do not impose a corporate income tax. The Company is also required to file in states other than the nine states in which it has properties.

Income tax expense for the years ended December 31, 2025 and 2024 was $51.2 million and $36.2 million, respectively. The Company’s effective income tax rate for the years ended December 31, 2025 and 2024 was 17.6 percent and 16.0 percent, respectively. The current and prior year’s low effective income tax rates were due to income from tax-exempt debt securities, municipal loans and leases and benefits from federal income tax credits. Income from tax-exempt debt securities, loans and leases was $84.7 million and $84.2 million for the years ended December 31, 2025 and 2024, respectively. Benefits from Low-Income Housing Tax Credits (“LIHTC”) federal income tax credits were $30.9 million and $25.4 million for the years ended December 31, 2025 and 2024, respectively.

The Company has equity investments in Certified Development Entities (“CDE”) which have received allocations of New Markets Tax Credits (“NMTC”). Administered by the Community Development Financial Institutions Fund (“CDFI Fund”) of the U.S. Department of the Treasury, the NMTC program is aimed at stimulating economic and community development and job creation in low-income communities. The federal income tax credits received are claimed over a seven-year credit allowance period. The Company also has equity investments in LIHTC’s which are indirect federal subsidies used to finance the development of affordable rental housing for low-income households. The federal income tax credits are claimed over a ten-year credit allowance period. The Company has investments of $9.5 million in Qualified School Construction bonds whereby the Company receives quarterly federal income tax credits in lieu of taxable interest income. The federal income tax credits on these debt securities are subject to federal and state income tax. The Company has investments in historic tax credits that are claimed over a five-year credit allowance period.

Following is a list of expected federal income tax credits to be received in the years indicated.

(Dollars in thousands)

New

Markets

Tax Credits

Low-Income

Housing

Tax Credits

Debt

Securities

Tax Credits

Historic Tax Credits

Total

2026

$

5,192 

31,567 

205 

564 

37,528 

2027

5,370 

32,360 

43 

564 

38,337 

2028

3,354 

30,012 

43 

— 

33,409 

2029

1,758 

28,634 

43 

— 

30,435 

2030

1,068 

27,134 

43 

— 

28,245 

Thereafter

— 

90,115 

64 

— 

90,179 

$

16,742 

239,822 

441 

1,128 

258,133 

For additional information on income taxes, see Note 17 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data”.

Average Balance Sheet

The following schedule provides 1) the total dollar amount of interest and dividend income of the Company for earning assets and the average yields; 2) the total dollar amount of interest expense on interest bearing liabilities and the average rates; 3) net interest and dividend income and interest rate spread; and 4) net interest margin (tax-equivalent).

52

Years ended

December 31, 2025

December 31, 2024

December 31, 2023

(Dollars in thousands)

Average

Balance

Interest

and

Dividends

Average

Yield/

Rate

Average

Balance

Interest

and

Dividends

Average

Yield/

Rate

Average

Balance

Interest

and

Dividends

Average

Yield/

Rate

Assets

Residential real estate loans

$

2,077,431 

$

111,135 

5.35

%

$

1,820,057 

$

89,596 

4.92

%

$

1,603,600 

$

71,328 

4.45

%

Commercial loans 1

15,355,275 

906,309 

5.90

%

13,818,805 

772,496 

5.59

%

12,982,708 

675,549 

5.20

%

Consumer and other loans

1,354,121 

97,509 

7.20

%

1,305,716 

89,160 

6.83

%

1,247,114 

74,734 

5.99

%

Total loans 2

18,786,827 

1,114,953 

5.93

%

16,944,578 

951,252 

5.61

%

15,833,422 

821,611 

5.19

%

Tax-exempt investment securities 3

1,612,206 

56,192 

3.49

%

1,675,732 

59,479 

3.55

%

1,740,746 

59,716 

3.43

%

Taxable investment securities 4,5

6,833,546 

138,547 

2.03

%

7,400,887 

145,128 

1.96

%

8,297,203 

152,003 

1.83

%

Total earning assets

27,232,579 

1,309,692 

4.81

%

26,021,197 

1,155,859 

4.44

%

25,871,371 

1,033,330 

3.99

%

Goodwill and intangibles

1,221,592 

1,079,404 

1,022,052 

Non-earning assets

989,532 

773,322 

504,698 

Total assets

$

29,443,703 

$

27,873,923 

$

27,398,121 

Liabilities

Non-interest bearing deposits

$

6,584,700 

$

— 

—

%

$

6,144,268 

$

— 

—

%

$

6,642,339 

$

— 

—

%

NOW and DDA accounts

5,764,971 

64,584 

1.12

%

5,326,296 

63,635 

1.19

%

5,167,117 

37,357 

0.72

%

Savings accounts

2,985,007 

22,418 

0.75

%

2,866,908 

22,684 

0.79

%

2,908,584 

9,918 

0.34

%

Money market deposit accounts

3,247,640 

66,660 

2.05

%

2,904,461 

58,140 

2.00

%

3,166,914 

42,254 

1.33

%

Certificate accounts

3,379,326 

120,344 

3.56

%

3,106,755 

128,081 

4.12

%

1,949,206 

64,176 

3.29

%

Total core deposits

21,961,644 

274,006 

1.25

%

20,348,688 

272,540 

1.34

%

19,834,160 

153,705 

0.77

%

Short-term borrowings

Wholesale deposits 6

4,029 

181 

4.49

%

3,615 

194 

5.36

%

173,231 

8,721 

5.03

%

Repurchase agreements

1,954,632 

57,172 

2.92

%

1,676,040 

55,723 

3.32

%

1,301,223 

36,414 

2.80

%

FHLB advances

1,302,973 

62,252 

4.71

%

1,147,456 

56,297 

4.83

%

551,986 

26,910 

4.81

%

FRB Bank Term Funding

— 

— 

—

%

617,377 

27,097 

4.39

%

2,133,658 

93,388 

4.38

%

Total short-term borrowings

3,261,634 

119,605 

3.72

%

3,444,488 

139,311 

3.98

%

4,160,098 

165,433 

3.92

%

Long-term borrowings

FHLB advances

— 

— 

—

%

351,038 

16,323 

4.57

%

— 

— 

—

%

Subordinated debentures and other borrowed funds

238,962 

13,146 

5.50

%

219,839 

7,044 

3.20

%

209,567 

6,835 

3.26

%

Total interest bearing liabilities

25,462,240 

406,757 

1.60

%

24,364,053 

435,218 

1.79

%

24,203,825 

325,973 

1.35

%

Other liabilities

356,409 

351,825 

275,359 

Total liabilities

25,818,649 

24,715,878 

24,479,184 

Stockholders’ Equity

Common stock

1,197 

1,132 

1,109 

Paid-in capital

2,730,729 

2,437,641 

2,346,575 

Retained earnings

1,130,602 

1,064,090 

1,021,469 

Accumulated other comprehensive loss

(237,474)

(344,818)

(450,216)

Total stockholders’ equity

3,625,054 

3,158,045 

2,918,937 

Total liabilities and stockholders’ equity

$

29,443,703 

$

27,873,923 

$

27,398,121 

Net interest income (tax-equivalent)

$

902,935 

$

720,641 

$

707,357 

Net interest spread (tax-equivalent)

3.21

%

2.65

%

2.64

%

Net interest margin (tax-equivalent)

3.32

%

2.77

%

2.73

%

53

Average Balance Sheet - continued

______________________________

1Includes tax effect of $6.3 million, $6.5 million and $5.9 million on tax-exempt municipal loan and lease income for the years ended December 31, 2025, 2024 and 2023, respectively.

2Total loans are gross of the ACL, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.

3Includes tax effect of $7.0 million, $8.6 million and $8.9 million on tax-exempt debt securities income for the years ended December 31, 2025, 2024 and 2023, respectively.

4Includes tax effect of $602 thousand, $832 thousand and $859 thousand on federal income tax credits for the years ended December 31, 2025, 2024 and 2023, respectively.

5Includes interest income of $28.9 million, $31.2 million and $42.2 million on average interest-bearing cash balances of $680.0 million, $594.8 million and $791.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

6Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Rate/Volume Analysis

Net interest income can be evaluated from the perspective of relative dollars of change in each period. Interest income and interest expense, which are the components of net interest income, are shown in the following table on the basis of the amount of any increases (or decreases) attributable to changes in the dollar levels of the Company’s interest earning assets and interest bearing liabilities (“volume”) and the yields earned and paid on such assets and liabilities (“rate”). The change in interest income and interest expense attributable to changes in both volume and rates has been allocated proportionately to the change due to volume and the change due to rate.

Year ended December 31,

Year ended December 31,

2025 vs. 2024

2024 vs. 2023

Increase (Decrease) Due to:

Increase (Decrease) Due to:

(Dollars in thousands)

Volume

Rate

Net

Volume

Rate

Net

Interest income

Residential real estate loans

$

12,670 

8,869 

21,539 

9,628 

8,640 

18,268 

Commercial loans (tax-equivalent)

83,546 

50,267 

133,813 

45,476 

51,472 

96,948 

Consumer and other loans

3,053 

5,296 

8,349 

3,726 

10,700 

14,426 

Investment securities (tax-equivalent)

(14,221)

4,353 

(9,868)

(20,277)

13,165 

(7,112)

Total interest income

85,048 

68,785 

153,833 

38,553 

83,977 

122,530 

Interest expense

NOW and DDA accounts

5,053 

(4,105)

948 

1,256 

25,022 

26,278 

Savings accounts

870 

(1,136)

(266)

(115)

12,881 

12,766 

Money market deposit accounts

6,692 

1,828 

8,520 

(3,396)

19,282 

15,886 

Certificate accounts

10,857 

(18,594)

(7,737)

38,392 

25,513 

63,905 

Wholesale deposits

22 

(34)

(12)

(8,538)

11 

(8,527)

Repurchase agreements

9,085 

(7,636)

1,449 

10,617 

8,692 

19,309 

FHLB advances

(9,648)

(720)

(10,368)

46,343 

(633)

45,710 

FRB Bank Term Funding

(27,097)

— 

(27,097)

(66,291)

— 

(66,291)

Subordinated debentures and other borrowed funds

592 

5,510 

6,102 

355 

(146)

209 

Total interest expense

(3,574)

(24,887)

(28,461)

18,623 

90,622 

109,245 

Net interest income (tax-equivalent)

$

88,622 

93,672 

182,294 

19,930 

(6,645)

13,285 

Net interest income (tax-equivalent) increased $182.3 million for the year ended December 31, 2025 compared to prior year end. The increase in interest income was primarily attributable to an increase in interest income and a decrease in interest expense. The increase in interest income was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The decrease in interest expense was driven primarily by a decrease in deposit rates and a decrease in higher cost borrowings.

Net interest income (tax-equivalent) increased $13.3 million for the year ended December 31, 2024 compared to the prior year end. The increase in interest income was primarily attributable to an increase in interest rates with additional benefit from the increase in

54

the loan portfolio, which more than outpaced the increase in interest expense which was primarily driven by an increase in interest rates.

Cyber Risk

A failure in or breach of the Company’s operational or security systems, or those of the Company’s third-party service providers, including as a result of cyber-attacks, could disrupt business, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, increase costs and cause losses. The Company employs detection and response mechanisms designed to contain and mitigate these risks. The Company maintains a robust information security program that is regularly reviewed, tested, and updated. This includes vulnerability and patch management programs, incident response planning, security monitoring, employee training, and security awareness testing. The Board's Risk Oversight Committee is responsible for monitoring the Company’s cyber risk management profile and related programs. The Board is responsible for approval of related policies.

See “Item 1A. Risk Factors” and “Item 1C. Cybersecurity” for additional information regarding our cybersecurity program and the risks we face from cybersecurity threats.

Critical Accounting Policies and Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income, and related disclosures. Certain accounting policies involve significant judgment and are particularly important to the portrayal of our financial condition and results of operations. These policies, and the related estimates, are described below as critical accounting policies and critical accounting estimates because changes in assumptions or judgments could materially affect our financial statements.

The Company considers its accounting policies for the ACL, goodwill and fair value measurements to be critical accounting policies. The application of these policies has a significant impact on the Company’s consolidated financial statements and financial results could differ significantly if different judgments or estimates were applied. The following describes why the estimates are subject to uncertainty, the estimated change in the reported periods, and the sensitivity of the reported amounts to the methods, assumptions, and estimates underlying the calculation. For additional information regarding the Company’s Significant Accounting Policies, see Note 1 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

Allowance for Credit Losses

The ACL for loans receivable represents management’s estimate of credit losses over the expected contractual life of the loan portfolio. The Company’s accounting policy for determining the adequacy of the allowance is complex and requires a high degree of judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance in those future period which is why there is such a high degree of uncertainty. Such factors or assumptions include loan volumes, delinquency status, credit ratings, historical loss experiences, estimated prepayment speeds, weighted average lives and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The Company’s estimate of the ACL is particularly sensitive to changes in economic forecasts, delinquency trends, and credit quality indicators. Deterioration in macroeconomic conditions, including increases in unemployment or interest rates, could result in higher expected credit losses and a corresponding increase in the provision for credit losses. Conversely, improvement in these conditions could reduce expected losses. For information regarding the ACL for loans receivable, its relation to the provision for credit losses and risk related to asset quality, and the estimated change during the reported periods, see the section captioned “Allowance for Credit Losses - Loans Receivable” included in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Notes 1 and 3 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

Goodwill

The Company’s accounting policy requires an annual assessment for goodwill for impairment, or more frequently if determined necessary. Goodwill of a reporting unit is tested for impairment if an event is more-likely-than-not to reduce the fair value of a reporting unit below its carrying amount. Changes in the economic environment, operations of the aggregated reporting units, or other factors could result in the decline in the fair value of the aggregated reporting units which could result in a goodwill impairment in the future. The estimate is considered to have a low amount of uncertainty unless there is an event that significantly lowers the fair value of a reporting unit estimate. Examples of events and circumstances include: significant change in legal factors or in the business climate, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel, a more likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of, and the testing for recoverability of a significant asset group within a reporting unit. There were no changes to the Company’s assessment or reported amounts during 2025. For information on goodwill, see Notes 1 and 6 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

55

Fair Value Measurements

Fair value measurement estimates are used for certain recorded and disclosed financial instruments on a recurring and non-recurring basis. Such estimates utilize a variety of assumptions which are subject to uncertainty. Certain fair value measurements, particularly those involving unobservable inputs, require significant judgment and are highly sensitive to changes in assumptions. These measurements may include valuation of financial instruments classified as Level 3 within the fair value hierarchy, where valuation is based on internally developed models. Changes in assumptions such as discount rates, credit spreads, or expected cash flows could result in materially different fair value estimates. For information on fair value measurements and the estimated changes during the reporting periods, see Note 21 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

Impact of Recently Issued Accounting Standards

Authoritative accounting guidance that impacted the Company that became effective during 2025 or 2024 include amendments to:

•FASB ASC Topic 280, Segment Reporting

•FASB ASC Topic 232, Investments Equity Method and Joint Ventures

•FASB ASC Topic 740, Income Taxes

Authoritative accounting guidance that may possibly have a material impact on the Company that is pending adoption at December 31, 2025 includes amendments to:

•FASB ASC Topic 326, Purchased Loans

•FASB ASC Topic 220, Disaggregation of Income Statement Expenses

For additional information on the topics and the impact on the Company see Note 1 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”