GBCI 10-K & 10-Q changes, risk factors and insider trading

Substantially all of the Bank’s loans are to businesses and individuals in Montana, Idaho, Utah, Washington, Wyoming, Colorado, ArizonaArizona, Nevada, and Nevada,now Texas, and adverse economic conditions in these market areas could have a material adverse effect on our business, financial condition, results of operations and prospects. Deterioration in the national economy may also have an adverse effect in these markets. Any future deterioration in economic conditions in the markets thewe Company servesserve could result in the following consequences, any of which could have an adverse impact, which could be material, on our business, financial condition, results of operations and prospects:

Commercial banking is a highly competitive business and a consolidating industry. The Bank competes with other commercial banks, credit unions, finance, insurance and other non-depository companies operating in its market areas. The Bank is subject to substantial competition for loans and deposits from other financial institutions. Some of its competitors are not subject to the same degree of regulation and restriction as the Bank while others have greater financial resources than the Bank. Additionally, the competitive landscape in the Bank’s market areas may change as a result of technological advancements, further consolidation, or banking charters issued to or acquired by fintech companies. If the Bank is unable to effectively compete in its market areas,areas or effectively adjust to the changing competitive landscape, the Bank’s business, financial condition, results of operations, and prospects could be adversely affected.

Historically, we have expanded through a combination of internal growth and selective acquisitions. IfIn 2025, there was an increase in acquisition activity in the banking industry, with deal volume and values up sharply from recent years, prompted by a more predictable and supportive regulatory environment. As market and regulatory conditions continue to change, we may be unable to grow organically or successfully compete for, complete, and integrate potential future acquisitions at the same pace as we have achieved in recent years, or at all. We have historically used our strong stock currency and capital resources to complete acquisitions. Downturns in the stock market and the market price of our stock, changes in our capital position, heighteneda return to a regulatory scrutiny,environment with increased scrutiny and/or less predictability, and changes in our regulatory standing could each have a negative impact on our ability to complete future acquisitions.

In the past, we have been active in acquiring banks and bank holding companies, and we may in the future engage in selected acquisitions of additional financial institutions.institutions or branches. There are risks associated with any such acquisitions that could adversely affect profitability and other performance measures. These risks include, among other things, incorrectly assessing the asset quality of a financial institution being acquired, discovering compliance or regulatory issues after the acquisition, encountering greater than anticipated costs and use of management time associated with evaluating potential acquisitions and integrating acquired businesses into our operations,businesses, and being unable to profitably deploy funds acquired in an acquisition.

We anticipate that we will issue capital stock in connection with future acquisitions. Acquisitions and related issuances of stock may have a dilutive effect on earnings per share,share and book value per share, and will in any event reduce the percentage ownership of current shareholders. In acquisitions involving the use of cash as consideration, there will be an impact on our capital position.

If goodwill recorded in connection with acquisitions becomes impaired, itrelated accounting charges could have an adverse impact on earnings and capital.

The Bank maintains an allowance for credit losses (“ACL” or “allowance”) in an amount that it believes is adequate to provide for losses in the loan portfolio. While the Bank strives to carefully manage and monitor credit quality and to identify loans that may become non-performing, at any time there are loans included in the portfolio that will result in losses, but that have not been identified as non-performing or potential problem loans. With respect to real estate loans and property taken in satisfaction of such loans (“other real estate owned” or “OREO”), the Bank can be required to recognize significant declines in the value of the underlying real estate collateral quite suddenly as values are updated through appraisals and evaluations (new or updated) performed in the normal course of monitoring the credit quality of the loans. There are many factors that can cause the value of real estate to decline, including declines in the general real estate market, changes in methodology applied by appraisers, and/or using a different appraiser than was used for the prior appraisal or evaluation. The Bank’s ability to recover on real estate loans by selling or disposing of the underlying real estate collateral is adversely impacted by declining values, which increases the likelihood the Bank will suffer losses on defaulted loans beyond the amounts provided for in the ACL. This, in turn, could require material increases in the Bank’s provision for credit losses and ACL. By closely monitoring credit quality, the Bank attempts to identify deteriorating loans before they become non-performing assets and adjustadjusts the ACL accordingly. However, because future events are uncertain, and if difficult economic conditions occur, there may be loans that deteriorate to a non-performing status in an accelerated time frame. As a result, future additions to the ACL may be necessary beyond the levels commensurate with any loan growth. Because the loan portfolio contains a number of loans with relatively large balances, the deterioration of one or a few of these loans may cause a significant increase in non-performing loans, requiring an increase to the ACL. Additionally, future significant additions to the ACL may be required based on changes in the mix of loans comprising the portfolio, and changes in the financial condition of borrowers, which may result from changes in economic conditions, or changes in the assumptions used in determining the ACL. Additionally, federal and state banking regulators, as an integral part of their supervisory function, periodically review the Bank’s loan portfolio and the adequacy of the ACL. These regulatory authorities may require the Bank to recognize further provision for credit losses or charge-offs based uponon their judgments, which may be different from the Bank’s judgments. Any increase in the ACL could have an adverse effect, which could be material, on our business, financial condition, and results of operations.

The loan portfolio contains a high percentage of commercial, commercial real estate, real estate acquisition and development loans in relation to the total loans and total assets. These types of loans have historically been viewed as having more risk of default than residential real estate loans or certain other types of loans or investments and tend to be larger in size. In fact, theThe FDIC has issued recent pronouncements highlighting the increased risk associated with commercial real estate loans, including with respect to the higher vulnerability of these credits to elevated interest rates and stressed market conditions in many large metropolitan areas, and alerting banks to its concern about banks with a heavy concentration of commercial real estate loans. Because the Bank’s loan portfolio containcontains commercial and commercial real estate loans with relatively large balances and nonperforming loan balances are very low, the deterioration of the credit quality of a few loans or the loan category may cause a significant increase in non-performing loans. An increase in non-performing loans would result in a loss of earnings from these loans and an increase in the provision for credit losses,losses and could lead to an increase in charge-offs, which could have a material adverse impact on our business, results of operations, and financial condition.

TheA Banksignificant has a high degreepercent of concentrationthe inBank’s loans are secured by real estate.estate, resulting in a high concentration of real estate secured loans. Any future deterioration in themarkets for commercial real estate marketsin the regions we serve could adversely impact borrowers’ ability to refinance or repay loans secured by real estate and the value of our real estate collateral, thereby increasing the credit risk associated with the loan portfolio. The Bank’s ability to recover on these loans by selling or disposing of the underlying real estate collateral would be adversely impacted by any decline in real estate values, which increasesincreasing the likelihood that the Bank will sufferof losses on defaulted loans secured by real estate beyond the amounts provided for in the ACL. This, in turn, could require material increases in the ACL which would adversely affect our business, financial condition, and results of operations.

The Bank may experience increases in non-performing assets in the future. Non-performing assets (which includes OREO) adversely affect our business, financial condition, and results of operations in various ways. The Bank does not record interest income on non-accrual loans or OREO, thereby adversely affecting its earnings. When the Bank takes collateral in foreclosures and similar proceedings, it is required to mark the related asset to the then fair value of the collateral, less estimated cost to sell, which may result in a charge-off of the value of the asset and lead the Bank to increase the provision for credit losses. An increase in the level of non-performing assets also increases the Bank’s risk profile and may impact the capital levels itsrequired regulatorsby believe are appropriate in light of such risks.regulators. Further decreases in the value of these assets, or the underlying collateral, or in these borrowers’ performance or financial condition, whether due to economic and market conditions beyond the Bank’s control or not, could adversely affect our business, results of operations and financial condition, perhaps materially. In addition to the carrying costs to maintain OREO, the management and resolution of non-performing assets increases the Bank’s loan administration costs generally,generally and requiresis significanttime-consuming, commitments of time from management and our directors, which reducesreducing the time theymanagement havehas to focus on profitably growing our business. As of December 31, 2025, 0.33 percent of the Bank’s loans are classified as non-performing assets, including 284 thousand of OREO.

While we believe that the terms of our debt securities have been kept relatively short, and although interest rates have fallen in recent years, we areremain subject to elevated interest rate risk exposure in the current elevated rate environment as compared to recent years.environment. Further, debt securities present a different type of asset quality risk than the loan portfolio. While we believe a relatively conservative management approach has been applied to the investment portfolio, there is always potential loss exposure under changing economic conditions.

We hold an interest in real estate as collateral for a significant portion of our loan portfolio, and we could become subject to environmental liabilities with respect to one or more of these properties. During the ordinary course of business, we may foreclose on and take title to properties securing defaulted loans. In doing so, there is a risk that hazardous or toxic substances could be found on these properties. If hazardous conditions or toxic substances are found on these properties, we may be liable for remediation costs, as well as for personal injury and property damage, civil fines and criminal penaltiespenalties, regardless of when the hazardous conditions or toxic substances first affected any particular property. Environmental laws may further require us to incur substantial expenses to address unknown liabilities and may materially reduce the affected property’s value or limit our ability to use or sell the affected property. In addition, future laws or more stringent interpretations or enforcement policies with respect to existing laws may increase our exposure to environmental liability. Although we have policies and procedures to perform an environmental review before initiating any foreclosure on nonresidential real property, these reviews may not be sufficient to detect all potential environmental hazards. The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on us.

We face competition from emerging technologies used to support and enable banking and financial services.

Emerging technologies and advances and growing market acceptance of e-commerce have lowered geographic and monetary barriers to other financial institutions, made it easier for non-depository institutions to offer products and services that traditionally were banking products and services, and allowed non-traditional financial service providers and technology companies to compete with traditional financial service companiescompanies. inThese providingcompetitors can provide electronic and internet-based financial solutions and services, including marketplace lending, financial data aggregation and payment processing, including through real-time payment platforms and electronic securities trading. Further, clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies, non-fungible tokens, and other digital assets. IncreasedCompetition from non-traditional financial service providers may be further aided by the changing attitudes and policies of banking regulators related to newly issued national charters, charters acquired through acquisitions, and permissible uses of digital assets. The current administration’s broad interpretation of the National Bank Act has spurred a proliferation of national bank charter applications from fintech companies. Additionally, banking regulators have recently rescinded prior guidance that restricted banks from engaging in crypto-related activities and issued a notice of proposed rulemaking related to the issuance of stablecoins permitted under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (the GENIUS Act). The resulting increases in competition from these developments or other technological changes may negatively affect our earnings by creating pressure to lower prices or credit standards on our products and servicesservices, requiring additional investment to improve the quality and delivery of our technologytechnology, and/or reducing our market share, or affecting the willingness of our clients to do business with us.

The Bank’s profitability is dependent to a large extent upon net interest income, which is the difference (or “spread”) between the interest earned on loans, investment securities and other interest earning assets and interest paid on deposits, borrowings, and other interest-bearing liabilities. Because of the differences in maturities and repricing characteristics of interest earning assets and interest-bearing liabilities, changes in interest rates do not produce equivalent changes in interest income earned on interest earning assets and interest paid on interest bearing liabilities. Accordingly, fluctuations in interest rates could adversely affect the Bank’s interest rate spread, and, in turn, profitability. The Bank seeks to manage its interest rate risk withinwith well-established policies and guidelines. Generally, the Bank seeks an asset and liability structure that insulates net interest income from large deviations attributable to changes in market rates. However, the Bank’s structures and practices to manage interest rate risk may not be effective in a highly volatile rate environment. The Federal Reserve decreased the federal funds target rate three times in 2024,2025, with the most recent decrease occurring in December 2024.2025. The Federal Reserve has communicated that the economic outlook continues to be uncertain, and whileany itfuture has stated that rates may continueadjustments to decreasethe infederal 2025,funds thererate will depend on incoming data. There can be no assurance of the timing or amount of any future rate adjustments. Further, there can be no assurance regarding any forecasts or predictions about the effect that any future rate adjustments may have on our results of operations. Elevated interest ratesrates, or interest rate volatility, could negatively impact deposit growth and mix, the value of our investments, shareholders’ equity, and the Bank’s profitability.

With Bank branches and customers located in Montana, Idaho, Utah, Washington, Wyoming, Colorado, ArizonaArizona, Nevada, and Nevada,Texas, our business could be affected by natural catastrophes such as a droughts, fires, earthquakes, or other natural disasters that affect these regions. The occurrence of any of these events may result in a prolonged interruption of our business and the businesses of our customers and could disrupt the insurability of our assets or the assets of our customers that may be material to their ability to repay or provide collateral for our loans, which could have a material adverse effect on our business, financial conditioncondition, and results of operations.

A failure in or breach of the Bank’s operational or security systems, or those of the Bank’s third-party service providers, including as a result of cyber attacks,cyberattacks, could disrupt business, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, increase costs and cause losses.

In the normal course of its business, the Bank collects, processes and retains sensitive and confidential customer and consumer information. Despite the security measures we have in place, our facilities and systems may be vulnerable to cyber-attacks, security breaches, acts of vandalism, computer viruses, misplaced or lost data, programming or human errors, attacks enhanced or facilitated by artificial intelligence (“AI”)AI, and other similar events.

Information security risks for financial institutions such as the Bank have increased recently in part because of new technologies, the use of the Internet and telecommunications technologies (including mobile devices) to conduct financial and other business transactions, and the increased sophistication and activities of organized crime, foreign actors, hackers, perpetrators of fraud, terrorists and others. In addition to cyber attackscyberattacks or other security breaches involving the theft of sensitive and confidential information, hackers have engaged in attacks against financial institutions designed to disrupt key business services such as customer-facing web sites. National and international economic and geopolitical conditions may also increase the number of cyber security threats the Bank may face. We may not be able to anticipate or implement effective preventative measures against all security breaches of these types. Although the Bank employs detection and response mechanisms designed to contain and mitigate security incidents, early detection may be thwarted by sophisticated attacks and malware designed to avoid detection, which continue to evolve.

Additionally, the Bank faces the risk of operational disruption, failure, termination or capacity constraints of any of the third parties that facilitate its business activities, including third-party service providers, vendors, exchanges, clearing agents, clearing houses or other financial intermediaries. Such parties could also be the source of an attack on, or breach of, the Bank’s operational systems. Our operational controls and third-party management programs may not always provide adequate oversight and control over these parties. Inadequate performance by third parties can adversely affect our ability to deliver products and services to our customers and conduct our business. Replacing or finding alternatives for underperforming vendors can be difficult and costly, potentially adversely impacting our customers and operations.

Any failures, interruptions or security breaches in our informationoperational systemsor security systems, or those of our third-party service providers, including as a result of cyberattacks, could damage our reputation, result in a loss of customerdisrupt business, result in the disclosure or misuse of confidential or proprietary information or a violation of privacy or other laws, or expose us to civil litigation, regulatory fines or losses not covered by insurance.insurance, and increase costs.

The Company’s business may be materially affected by the emergence of disruptive new technologies or approaches enabled by the rapid pace of innovation unfolding in the artificial intelligenceAI space.

The safe and responsible integration of AI functionalitytechnology as it rapidly evolves presents emerging ethical and legal challenges, and the use of such technologies may result in diminished brand trust and reputational harm. As with many innovations, AI presents risks and challenges that could significantly disrupt our business model.model, such as risks related to implementation of AI technologies, including operational risks stemming from system failures or disruptions of business processes as well as increased costs associated with acquiring, deploying, and maintaining AI technologies. In addition, the use of AI by bad actors presents increasingly complex and sophisticated security threats to our confidential customer, employee,data and Companythe data,confidential data of our customers and weemployees. mustThese makepotential security threats require additional efforts and investments to maintain network security.security and the security of the data we possess.

The regulatory landscape surrounding AI technologies is also evolving, and the ways in which these technologies will be regulated by governmentalfederal, authorities,state, and local governments, self-regulatory institutions,bodies, or other regulatory authorities remains uncertain and may be inconsistent from jurisdiction to jurisdiction. CertainSome jurisdictionsstates inwithin whichour wemarket operateareas arehave consideringenacted or have proposed or enacted legislation and policies regulating AI andwith non-personala data, such as the recent Executive Orderfocus on AI.consumer rights, bias, transparency and misuse. The president has responded by issuing an executive order seeking to centralize AI policies and to identify and challenge inconsistent state laws. Such AI regulations may result in operational costs to modify, maintain, or align our business practices,practices with the rapidly evolving, potentially unclear, or conflicting regulatory regimes, or constrain our ability to develop, deploy, or maintain these technologies.

Regulators have significant discretion and authority to prevent or remedy unsafe or unsound practices or violations of laws or regulations by financial institutions and bank holding companies in the performance of their supervisory and enforcement duties. Existing and proposed federal and state laws and regulations restrict, limit, and govern all aspects of our activities and may affect our ability to expand our business over time, may result in an increase in our compliance costs, and may affect our ability to attract and retain qualified executive officers and employees. The exercise of regulatory authority may have a negative impact on our business, financial condition and results of operations, including limiting the types of financial services and products we may offer or increasing the ability of non-banks to offer competing financial services and products at a lower cost. Additionally, our business is affected significantly by the fiscal and monetary policies of the federal government and its agencies, including the Federal Reserve. We cannot accurately predict the full effects of recent legislation or the various other governmental, regulatory, monetary and fiscal initiatives which have been and may be enacted.

Our business is impacted by factors such as economic, political and market conditions, broad trends in industry and finance, changes in government monetary and fiscal policies, inflation, and financial market volatility, all of which are beyond our control. National and global economies are constantly in flux,flux asand evidencedare affected by recentgeopolitical marketinstability, volatilityincluding resultingthe from,war amongin Ukraine, conflicts in the Middle East, and potential for future conflicts or disruptions in other things, the bank failures involving Silicon Valley Bank and Signature Bank in 2023, the effects of inflation, and the ever-changing landscapeparts of the energyworld. In recent years, supply chain constraints, labor shortages, tariffs, and medicalmonetary industries.and fiscal policies have affected inflation. Although inflationary pressures seemed to ease further during 2025, with the annual inflation rate in the United States at 2.7% as of December 2025, as reported by the U.S. Bureau of Labor Statistics, inflation remained slightly elevated. Our business may be further impacted by periods of high inflation in the future.

Although inflationary pressures declined throughout 2024, with the annual inflation rate in the United States decreasing to 2.4% during September 2024 as reported by the U.S. Bureau of Labor Statistics, our business may be impacted by periods of high inflation in the future. Small to medium-sized businesses may be impacted more during periods of high inflation as they are not able to leverage economies of scale to mitigate cost pressures compared to larger businesses. Consequently, the ability of our business customers to repay their loans may deteriorate, which would adversely impact our results of operations and financial condition. Furthermore, a prolonged period of inflation, or a structural shift to a persistently higher inflation environment, could cause wages and other costs to the Company to increase, which could adversely affect our results of operations and financial condition. Nearly all our assets and liabilities are monetary in nature. As a result, interest rates tend to have a more significant impact on our performance than general levels of inflation or deflation. Interest rates do not necessarily move in the same direction or by the same magnitude as the prices of goods and services.

Significant changes or developments in U.S. laws and policies can materially adversely affect our business. ThereThe arepolicies uncertaintiesenacted aroundby the legalcurrent presidential administration (including trade, fiscal, foreign, and regulatorymonetary approach that will be taken underpolicy), the Executiveuncertainty branchsurrounding Administration,the U.S. debt ceiling, government shutdowns, and weadministrative agencies such as the CFPB and the Federal Reserve could affect the national and global economy. We cannot predict the likelihood, nature or extent of changes in lawlaw, government regulations, or government regulationsoperations that may arise from future legislation or administrative or executive action, either in the United States or abroad. We also cannot predict the impact such factors may have on the national and global economy or the magnitude of their impact on our business.

We believe our success to date has been substantially dependent on our executive management team. In addition, our unique model relies uponon the Presidents of our separate Bank divisions, particularly in light of our decentralized management structure in which such Bank divisions have significant local decision-making authority. The unexpected loss of any of these personsindividuals could have an adverse effect on our business, financial condition, results of operations, and future growth prospects.

We use models and strategies to forecast losses, project revenue, and measure and assess capital requirements for various credit, market, operational and strategic risks. These models require oversight, ongoing monitoring, and periodic reassessment. Models are subject to inherent limitations due to the use of historical trends and simplifying assumptions, uncertainty regarding economic and financial outcomes, and emerging risks from the use of applications that may rely on artificial intelligence. Our models and strategies may not be adequate due to limited historical data and shocks caused by extreme or unanticipated market changes, especially during severe market downturns or stress events. Regardless of the steps we take to ensuremaintain effective controls, governance, monitoring and testing, and implement new risk management tools, we could suffer operational, reputational and financial harm if our models and strategies and other risk management tools fail to properly anticipate and manage the current and evolving risks we face.

Climate changeimpacts may materially adversely affect the Company's business, financial condition, and results of operations.

Concerns overIn the long-termU.S., effectsfederal ofpolicy has shifted away from climate change haveinitiatives, ledincluding scaling back participation in international agreements and reducing regulatory requirements for banks to governmentaladdress effortsclimate-related aroundrisks. Conversely, state and local governments, including some within the worldBank’s tomarket mitigateareas, thosehave impacts.enacted or advanced significant climate change legislation. Consumers and businesses also may voluntarily change their behavior as a result of theseconcerns concerns.regarding climate change or related legislation. Both the Bank and its customers will need to respond to newchanging lawspolicies, laws, and regulations as well as consumer and business preferences resultingregarding from climate changeclimate-related concerns. The Bank and its customers may face cost increases, asset value reductions and operating process changes. The impact on our customers will likely vary depending on their specific attributes, including reliance onon, or role inin, carbon-intensive activities. Among the impacts toon the Bank could be a drop in demand for our products and services, particularly in certain sectors.sectors, depending on the Bank’s response to climate change legislation and regulations. In addition, we could face reductions in creditworthiness on the part of some customers or in the value of assets securing loans.loans that are affected by the effects of climate change. The Bank attempts to take these risks into account in making lending and other decisions, including by increasing our business with climate-friendly companies, but the bank’sBank’s efforts may not be effective in protecting the Bank from the negative impact of new laws and regulations or changes in consumer or business behavior.

•changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which may continue tocould 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 increasedthe possibility of increases in FDIC insurance rates and assessmentsassessments, changes in the review and regulation of bank mergers, or increasedincreases 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 newcurrent administration, and geopolitical instability, including the wars in Ukraine and the Middle Eastadministration;

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

•costs or difficulties related to the completion and integration of pendingfuture or futurerecently completed acquisitions;

•changes in the competitive landscape, including as may result from new market entrantsentrants, 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 associated with dependence on the Chief Executive Officer (“CEO”),Officer, the senior management team and the Presidents of Glacier Bank (the “Bank”)Bank’s divisions;

•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.

Net income for the current year was $190$239 million, aan decreaseincrease of $32.8$48.9 million, or 1526 percent, over the prior year net income of $223$190 million. The decrease in net income during the current yearincrease was primarily driven by the significantincrease in net interest income which more than offset the increase in fundingnon-interest costs, increased operating costs from acquisitions and an $8.6 million increase in acquisition-related expenses.expense. Diluted earnings per share for the year was $1.68,$1.99, aan decreaseincrease of 1618 percent, from the 20232024 diluted earnings per share of $2.01.$1.68. Net interest income of $705$889 million for 20242025 increased $13.0$184 million, or 226 percent, over 20232024 and was primarily driven by increased interest income which outpaced the increase in interest expense.income. Non-interest expense of $578$669 million for 20242025 increased $51.1$90.3 million, or 1016 percent, during the current year and was primarily driven by increased operating expenses from the current year acquisitions and ana $8.6$6.7 million increase in acquisition-related expenses. The Company’s increase in credit loss expense of $13.5$43.1 million during the current year was primarily driven by a $9.7$43.9 million provision for credit losses associated with the current year acquisitions.

The Company's net interest margin for 20242025 was 2.773.32 percent, a 455 basis points increase from the net interest margin of 2.732.77 percent from 2023,2024, which was primarily driven by the increaseincreased loan yields and decreased funding costs combined with a shift in earning asset yieldsmix whichto outpacedhigher theyielding increaseloans and a shift in funding cost.liabilities to lower cost deposits. The earning asset yield of 4.444.81 percent for the current year increased 4537 basis points over the prior year and the total cost of funding yield of 1.791.60 percent for the current year increaseddecreased 4419 basis points over the prior year.

The Company ended the year at $27.903$31.978 billion in assets, which was a $160$4.075 million,billion, or 115 percent, increase over the prior year end and was primarily driven by the increase in the loan portfolio which more than offset the decrease in debt securities and interest bearing cash.portfolio. Loan growth was $1.064$3.666 billion, or 721 percent, during 20242025 which was driven by both acquisitions and internal loan growth. Total deposits of $20.547$24.591 billion increased $618$4.044 million,billion, or 320 percent, from the prior year end and was primarily driven by theboth currentacquisitions yearand acquisitions.internal deposit growth. Stockholders’ equity increased $204$990 million, or $1.19$3.99 per share, which was the combined result of earnings retention, $92.4$759 million of Company common stock issued for an acquisitionacquisitions and the decrease in the unrealized loss on AFS debt securities in 2024.2025. The Company declared quarterly dividends totaling $1.32 per share during 20242025 and 2023.2024.

The Company’s credit risk quality remains strong,at historically low levels, ending the current year with $27.8$68.9 million in non-performing assetsassets, or 0.22 percent of subsidiary assets, compared to $25.6$27.8 millionmillion, or 0.10 percent of subsidiary assets, at prior year end. Net charge-offs for 20242025 remained low at 0.080.06 percent of loans compared to 0.060.08 percent of loans during the prior year. The Company also continues to maintain an adequate allowance for credit losses at 1.191.22 percent of loans at year end 20242025 andcompared to 1.19 at prior year end 2023.end.

During 2024,2025, the Company acquired CommunityGuaranty Financial Group,Bancshares, Inc., the parent company of WheatlandGuaranty Bank,Bank & Trust, N.A., a leading eastern Washington community bank headquartered in SpokaneMount Pleasant, Texas with total assets of $778$3.357 million.billion. In 2024,2025, the Company also acquired six Montana branch locationsBank of Idaho Holding Co., the Rockybank Mountainholding company for Bank division of HTLF BankIdaho with total assets of $403$1.364 million.billion. For additional information on the acquisitions, see Note 23 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

TotalThe Company continues to maintain a strong cash position of $848$1.235 millionbillion at December 31, 20242025, decreasedwhich $506was an increase of $387 million, or 3746 percent, fromover the prior year end as excess liquidity was used to fund loan growth and pay down certain borrowings.year. Total debt securities of $7.540$7.118 billion at December 31, 20242025 decreased $748$422 million, or 96 percent, from the prior year end. Debt securities represented 2722 percent of total assets at December 31, 20242025 compared to 3027 percent at December 31, 2023.2024.

The loan portfolio of $17.262$20.928 billion at December 31, 20242025 increased $1.064$3.666 billion, or 721 percent, fromduring the prior year end.2025. Excluding the RMBGuaranty and WheatlandBOID acquisitions, the loan portfolio increased $342$488 million, or 23 percent, during 2024.2025 Excluding the acquisitions,and the loan category with the largest dollar increase during 20242025 was commercial real estateestate, which increased $234$474 million, or 24 percent, from the prior year end.

Total deposits of $20.547$24.591 billion at December 31, 20242025 increased $618$4.044 million,billion, or 320 percent, from the prior year end. Excluding the $1.014 billion of deposits from the RMB and Wheatland acquisitions, total deposits decreasedincreased $396$259 million, or 21 percent, from the prior year end and total deposits and repurchase agreements decreased $109 million, or 51 basis points, from the prior year end. Non-interest bearing deposits represented 30 percent of total deposits at December 31, 2024 and December 31, 2023.

Tangible stockholders’ equity of $2.730 billion at December 31, 20242025 increased $118$609 million, or 629 percent, compared to the prior year end and was primarily due to $92.4the $759 million of Company common stock issued forin connection with the acquisitionacquisitions of WheatlandBOID and Guaranty and a decrease of $67.9$142 million decrease in unrealizedother losscomprehensive on the available-for-sale securities portfolio.loss. The increase was partially offset by the increase in goodwill and core depositsdeposit intangible associated with the acquisitions of WheatlandBOID and RMB.Guaranty acquisitions. Tangible book value per common share of $18.71$21.01 at theDecember current31, year end2025 increased $0.65$2.30 per share, or 412 percent, from the prior year end.

Net interest income of $705$889 million for 20242025 increased $13.0$184 million, or 226 percent, overfrom 2023the prior year and was primarily driven by increased interest income whichand outpaced the increase indecreased interest expense. Interest income of $1.140$1.296 billion for 20242025 increased $122$156 million, or 1214 percent, from the prior year and was primarily attributable to the increasesincrease in the loan yieldsportfolio and thean averageincrease balance of thein loan portfolio.yields. The loan yield was 5.615.93 percent for 2024,2025, an increase of 4232 basis points from the prior year loan yield of 5.195.61 percent.

Interest expense of $435$407 million for 20242025 increaseddecreased $109$28 million, or 347 percent, overfrom the prior year and was primarily the result of higherlower interest rates on deposits and ana increasedecrease in deposithigher balances.cost Coreborrowings. depositDeposit cost (including non-interest bearing deposits) was 1.341.25 percent for 20242025, comparedwhich towas 0.77a percentdecrease forof 9 basis points from the prior year.year deposit costs of 1.34 percent. The total funding cost (including non-interest bearing deposits) for 20242025 was 1.791.60 percent, which was ana increasedecrease of 4419 basis points over the prior year funding cost of 1.351.79 percent.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 20242025 was 2.773.32 percent, a 455 basis points increase from the net interest margin of 2.732.77 percent for the prior year. Excluding the 45 basis points from discount accretion and the 1 basis point from non-accrual interest,accretion, the core net interest margin was 2.723.27 percent in the current year compared to 2.712.72 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 of $128$141 million for 20242025 increased $10.4$12.9 million, or 910 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 $16.9$18.2 million for 20242025 increased by $4.7$1.4 million, or 388 percent, over the prior year, pimarily due to the increase in volume of loans sold.year. Other income of $14.0$17.7 million for 20242025 increased $1.7$3.7 million, or 14 percent,million over the same period last year and was primarily driven by a $1.2 million gain on the sale of repossessed property during the currentprior year. Included in the 2023current gainyear onother sale of securitiesincome was $1.7$2.8 million of gainincome onrelated theto salebank ofowned alllife ofinsurance the Company’s Visa class B shares.proceeds.

Total non-interest expense of $578$669 million for 20242025 increased $51.1$90.3 million, or 1016 percent, over the same period in the prior year.year and was primarily driven by increased costs from recent acquisitions. Compensation and employee benefits expense of $337$393 million in 20242025 increased $27.9$56.4 million, or 917 percent, over the prior year and was primarily driven by annual salary increases,increases and staffing increases infrom performance-related compensation and the acquisitions of Wheatland and RMB.acquisitions. Regulatory assessmentsassessment and insurance expense of $24.2$22.7 million for 20242025 decreased $4.5$1.5 million, or 16 percent, over the prior year which was principally due to the prior year $6.0 million expense related to the FDIC special assessment which had subsequent $1.0 million accrual adjustment increases in 2024. Other expenses of $104 million for 2024 increased $17.3 million, or 206 percent, from the prior year andprimarily 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 primarily driven by an increase of $8.6$16.6 million of acquisition-related expenses and increased costs fromin the acquisitionscurrent ofyear Wheatlandcompared andto RMB.$9.9 Themillion increasein wasthe partiallyprior offsetyear. byOther expenses also included gains of $5.1 million from the sale of former branch facilities of $2.8 million in the current year and disposal$5.6 ofmillion fixedin assets.the prior year.

The provision for credit loss expense was $28.3$71.4 million for 2024,2025, an increase of $13.5$43.1 million, or 91152 percent, over the priorsame year and was primarily attributable to $9.7 million from the acquisitions of Wheatland and RMB. Net charge-offs for 2024 were $13.9 million compared to $10.3 millionperiod 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.

The efficiency ratio was 62.50 percent for 2025 compared to 66.71 percent for 2024 compared to 62.85 percent for 2023.2024. The increaseimprovement from the prior year was primarily attributable to increased non-interest expense, including costs associated with the acquisitions of Wheatland and RMB, which outpaced the increase in net interest income.income that outpaced the increase in non-interest expense.

The Company’s investment securities primarily consist of debt securities classified as either available-for-sale (“AFS”) or held-to-maturity.held-to-maturity Non-marketable(“HTM”). equityEquity 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 classified as available-for-saleAFS are carried at estimated fair value and debt securities classified as held-to-maturityHTM 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:

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 itsthese 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 presents the carrying amount and weighted-average yield of available-for-saleAFS and held-to-maturityHTM debt securities by contractual maturity at December 31, 2024.2025. 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.

Based on an analysis of its available-for-saleAFS debt securities with unrealized losses as of December 31, 2024,2025, 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 held-to-maturityHTM debt securities portfolio; therefore, no ACL has been recognized at December 31, 2024.2025.

TheLoan Companyinformation focusesis its lending activities primarilybased on the followingCompany’s typesloan segments, which are based on the purpose of loans:the 1)loan, first-mortgage,unless conventionalotherwise loansnoted securedas bya residentialregulatory 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.).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. Loan information included in “Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” is based on the Company’s loan segments, which are based on the purpose of the loan, unless otherwise noted as a regulatory classification. The following table summarizes the Company’s loan portfolio as of the dates indicated:

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

The Company had $388$450 million and $479$388 million of loans with remaining interest reserves of $31.3$33.7 million and $20.7$31.3 million as of December 31, 20242025 and 2023,2024, respectively. During 20242025 and 2023,2024, the Company extended, renewed or modified 4six loans and 7four loans, respectively, with interest reserves. Such loans had an aggregate outstanding principal balance of $1.5$20.5 million and $56.0$1.5 million as of December 31, 20242025 and 2023,2024, respectively. As of December 31, 2024,2025, the Company had no construction loans with interest reserves that are currently non-performing or that are designated potential problem 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 discourages the use of multiple loans when modifying loans regardless of whether or not the loans are designated an MBFD. The Company had MBFD loans of $55.0$14.8 million and $60.6$55.0 million at December 31, 20242025 and 2023,2024, respectively. For additional information on MBFDs, see Note 3 to the Consolidated Financial Statement in “Item 8. Financial Statements and Supplementary Data.”

The ACL as a percentage of total loans outstanding at December 31 20242025 was 1.191.22 percentpercent, which was unchangedan increase of 3 basis points from the prior year end. The Company’s ACL of $206$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, 20242025, 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 20242025 and 2023,2024, provision for credit losses exceeded the charge-offs, net of recoveries, by $13.3$49.1 million and $13.0$13.3 million, respectively.

The Company provides commercial banking services to individuals, small to medium-sized businesses, community organizations and public entities from 227281 locations, including 194236 branches, across Montana, Idaho, Utah, Washington, Wyoming, Colorado, ArizonaArizona, Nevada, and Nevada.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 seventeeneighteen 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.

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, 2024.2025. The subordinated debentures outstanding as of December 31, 20242025 were $133$187 million, including fair value adjustments from acquisitions. For additional information regarding the subordinated debentures, see Note 1011 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

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. During 2024, the amount of unencumbered securities increased primarily as a result of pledging securities to collateralize borrowings from 2023 that were released in 2024. 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.

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 AFSAFS, and $1.6 billion classified as HTM. Total unencumberedAFS debt securities are reported at Decemberfair 31, 2023, included $441.5 million classified as AFS,value and $1.4HTM billiondebt classifiedsecurities asare HTM.reported at amortized cost.

Forward looking statements speak only as of the date of this Form 10-Q. The Company does not undertake any obligation to updatepublicly correct or reviseupdate any forward-looking statements,statement whetherif asit alater resultbecomes ofaware newthat information,actual futureresults eventsare orlikely otherwise,to exceptdiffer asmaterially requiredfrom bythose law.expressed in such forward-looking statement.

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 in the tables 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 incomeincome, expense, or intangible items that the Company believes are not indicative of its primary business operating results.

The Company reported net income of $82.1$97.9 million for the current quarter, an increase of $18.4$15.8 million, or 2919 percent, from the prior quarter net income of $63.8$82.1 million and an increase of $27.6$45.1 million, or 5185 percent, from the prior year firstsecond quarter net income of $54.6$52.8 million. Diluted earnings per share for the current quarter was $0.63$0.75 per share, an increase of $0.14$0.12 per share, or 2919 percent, from the prior quarter diluted earnings per share of $0.49$0.63 and an increase of $0.15$0.30 per share, or 3167 percent, from the prior year firstsecond quarter diluted earnings per share of $0.48.$0.45. DilutedOperating operatingdiluted earnings per share for the current quarter was $0.70$0.76 per share, an increase of $0.01$0.06 per share, or 19 percent, from the prior quarter operating diluted operating earnings per share of $0.69$0.70 and an increase of $0.23$0.19 per share, or 4933 percent, from the prior year firstsecond quarter operating diluted operating earnings per share of $0.47.$0.57. The current quarter included $8.9$1.6 million in acquisition-related expensesexpenses, and $2.8$2.5 million of compensation from acquisition-related employment agreements.agreements and $2.6 million of gains from the sale of former branch facilities and disposal of fixed assets.

1 In connection with the current quarterGuaranty core system conversion from the acquisition of Guaranty Bancshares, Inc. and its wholly owned subsidiary, Guaranty Bank & Trust (collectively, “Guaranty”),conversion, Guaranty loans were reclassified in the prior quarter to conform to the Company’s classifications. There were approximately $236 million of loans reclassified from residential loans into other categories, the majority of which were reclassified to commercial real estate loans.

The Company continues to maintain a strong cash position of $1.385 billion at March 31, 2026, which was an increase of $150 million, or 12 percent, over the prior quarter and an increase of $404 million, or 41 percent, over the prior year first quarter. Total debt securities of $6.644$6.487 billion at MarchJune 31,30, 2026 decreased $474$157 million, or 72 percent, during the current quarter and decreased $790$744 million, or 1110 percent, from the prior year firstsecond quarter. The Company selectively purchased debt securities during the current quarter with the Company’s excess liquidity position. Debt securities represented 21 percent of total assets at June 30, 2026 and March 31, 2026 compared to 2225 percent at DecemberJune 31, 2025 and 27 percent at March 31,30, 2025.

The loan portfolio of $21.034$21.364 billion at MarchJune 31,30, 2026 increased $106$330 million, or 26 percent annualized, duringfrom the currentprior quarter. The loan portfolio increased $3.815$2.831 billion, or 2215 percent, from the prior year firstsecond quarter. Excluding the acquisition of Bank of Idaho Holding Co. and its wholly owned subsidiary, Bank of Idaho (collectively, “BOID”) on April 30, 2025 and the Guaranty acquisition on October 1, 2025, the loan portfolio organically increased $638$728 million, or 4 percent, from the prior year firstsecond quarter.

Total deposits of $24.7 billion at MarchJune 31,30, 2026 increaseddecreased $151$87.8 million, or 235 percentbasis annualized,points, during the current quarter and increased $4.108$3.026 billion, or 2014 percent, from the prior year firstsecond quarter. Excluding the BOID and Guaranty acquisitions,acquisition, total deposits organically increased $323$319 million, or 21 percent, from the prior year firstsecond quarter.

Non-interest bearing deposits of $7.427$7.423 billion at MarchJune 31,30, 2026 increaseddecreased $113$3.8 million, or 65 percentbasis annualized,points, from the prior quarter and increased $1.327$830 billion,million, or 2213 percent, from the prior year first quarter. Excluding the BOID and Guaranty acquisitions, total non-interest bearing deposits organically increased $223 million, or 4 percent, from the prior year firstsecond quarter. Non-interest bearing deposits represented 30 percent of total deposits at eachJune of30, 2026, March 31, 2026, December 31, 20252026 and MarchJune 31,30, 2025.

The remaining $440 million of Federal Home Loan Bank (“FHLB”) advances were paid off during the current quarter. Subordinated debentures of $188 million increased $54.9 million, or 41 percent, from the prior year first quarter as a result of acquisitions. See “Additional Management’s Discussion and Analysis - Source of Funds - Borrowers” for additional information regarding borrowings.

Tangible stockholders’ equity of $2.770$2.839 billion at MarchJune 31,30, 2026 increased $39$69 million, or 13 percent, compared to the prior quarter and was primarily due to earnings retention. Tangible stockholders’ equity at MarchJune 31,30, 2026,2026 increased $581$493 million, or 2721 percent, from the prior year firstsecond quarter,quarter and was primarily due to $765$560 million of Company stock issued in connection with the acquisitionsacquisition of BOIDGuaranty, earnings retention and Guarantya and an $87$67 million decrease in accumulated other comprehensive loss. The increase was partially offset by the increase in goodwill and core deposit intangible associated with the BOID and Guaranty acquisitions.acquisition. Tangible book value per common share of $21.29$21.81 at the current quarter end increased $0.28$0.52 per share, or 12 percent, from the prior quarter and increased $2.01$2.02 per share, or 10 percent, from the prior year firstsecond quarter.

On MarchJune 25,23, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable AprilJuly 16, 2026 to shareholders of record on AprilJuly 7, 2026. The dividend was the Company’s 164th165th consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended MarchJune 31,30, 2026

Compared to December 31, 2025, and March 31, 2026, and June 30, 2025

Net interest income of $269$276 million for the current quarter increased $2.6$7.8 million, or 13 percent, from the prior quarter net interest income of $266$269 million and increased $78.7$68.8 million, or 4133 percent, from the prior year firstsecond quarter net interest income of $190$208 million. The current quarter interest income of $362$365 million decreasedincreased $10.4$2.9 million, or 31 percent, over the prior quarter, which primarily attributable to a decrease in debt securities. The current quarter interest incomeand increased $72.4$57.1 million, or 2519 percent, over the prior year firstsecond quarter and was primarily driven by both increased loans and increased interest rates on earningthe assets.loan portfolio. The loan yield of 6.166.12 percent in the current quarter increaseddecreased 74 basis points from the prior quarter loan yield of 6.096.16 percent and was principally due to a 3 basis points decrease in loan discount accretion and a 2 basis points decrease in non-accrual loan interest reversal. The core loan yield of 6.06 percent in the current quarter increased 391 basis point from the prior quarter core loan yield of 6.05 percent. The loan yield increased 26 basis points from the prior year firstsecond quarter loan yield of 5.775.86 percent.

The current quarter interest expense of $93.7$88.8 million decreased $13.0$4.9 million, or 5 percent, from the prior quarter, and decreased $11.7 million, or 12 percent, from the prior quarter,year second quarter primarily due to a decrease in interest rates on deposits and a decrease in higher cost borrowings. TheCore current quarter interest expense decreased $6.3 million, or 6 percent, from the prior year first quarter and was primarily attributable to the decrease in higher cost borrowings. Depositdeposit cost (including non-interest bearing deposits) decreased to 1.201.18 percent in the current quarter compared to 1.261.20 percent in the prior quarter and 1.25 percent in the prior year firstsecond quarter. The total funding cost (including non-interest bearing deposits) decreased to 1.33 percent in the current quarter compared to 1.40 percent in the prior quarter and 1.63 percent in the prior year second quarter.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.803.90 percent, an increase of 2210 basis points from the prior quarter net interest margin of 3.583.80 percent and was primarily driven by anthe increaseshift in loanthe yieldsearning assets mix to higher yielding loans and a decrease in the totalhigh cost of funding.borrowings. The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter increased 7669 basis points from the prior year firstsecond quarter net interest margin of 3.043.21 percent and was also primarily driven by the increase in loan yieldsyields, the shift in the earning assets mix to higher yielding loans and the decrease in the totalhigh cost of funding.borrowings. Core net interest margin was 3.733.86 percent in the current quarter compared to 3.513.73 percent in the prior quarter and 2.983.18 percent in the prior year firstsecond quarter, with the increases also being primarily driven by an increase in loan yields and a decrease in total cost of funding.quarter.

Non-interest income for the current quarter totaled $38.1$41.1 million, which was aan decreaseincrease of $2.4$3.0 million, or 68 percent, over the prior quarterquarter. andNon-interest anincome increaseincreased of $5.4$8.2 million, or 1725 percent, over the prior year firstsecond quarter. Deposit service charges and other fees of $15.3 million for the current quarter decreased $639 thousand, or 4 percent, compared to the prior quarter and was primarily due to seasonal fluctuations. Payment services of $11.4 million for the current quarter decreased $1.3 million, or 10 percent, from the prior quarter and was also primarily driven by seasonal fluctuations. Deposit service charges and other fees increased $2.1 million, or 15 percent, compared to the prior year first quarter and payment services increased $2.0 million, or 22 percent, over the prior year first quarter. Gain on the sale of residential loans of $5.1$16.4 million for the current quarter increased $514$1.1 thousand,million, or 117 percent, compared to the prior quarter and increased $797$2.4 thousand,million, or 18 percent, from the prior year firstsecond quarter. OtherPayment incomeservices of $4.1$12.0 million infor the current quarter decreasedincreased $742$644 thousand, or 6 percent, from the prior quarter and increased $1.6 million, or 15 percent, andover wasthe primarilyprior attributableyear tosecond an $825 thousand decrease in income related to bank owned life insurance proceeds.quarter.

Total non-interest expense of $201$187 million for the current quarter increaseddecreased $6.0$13.8 million, or 37 percent, over the prior quarter. Total non-interest expense increased $49.2$31.6 million, or 3320 percent, over the prior year firstsecond quarter and was primarily driven by increased costs from the BOIDacquired and Guaranty acquisitions. Compensation and employee benefits of $116 million for the current quarter increased by $4.8 million, or 4 percent, over the prior quarter, which was primarily driven by annual salary increases and increased employee benefits.banks.

Compensation and employee benefits of $116 million for the current quarter increased by $529 thousand, or 46 basis points, over the prior quarter. Compensation and employee benefits increased $24.3$21.9 million, or 2723 percent, from the prior year firstsecond quarter and was primarily driven by annual salary increases and increases in staffing levels from the BOIDacquired andbanks. GuarantyOther acquisitions. Occupancy and equipment expenseexpenses of $15.7$26.9 million decreased $1.8$12.3 million, or 1131 percent, from the prior quarter and was primarily duedriven toby the prior quarter including $1.1$7.3 million of decreased acquisition-related expenses related to vacating branch locations. Regulatory assessment and insurancea expense of $6.4$3.1 million increasedincrease $908in thousand, or 17 percent,gains from the priorsale quarter,of primarilyformer frombranch afacilities $739and thousanddisposal decreaseof infixed expense reduction in the prior quarter related to an FDIC special assessment.assets.

Acquisition-related expense was $8.9$1.6 million in the current quarter compared to $5.8$8.9 million in the prior quarter and $587$3.2 thousandmillion in the prior year firstsecond quarter. In addition, compensation and employee benefits included $2.8$2.5 million of expense attributable to acquisition-related employment agreements in the current quarter compared to $2.9$2.8 million in the prior quarter and $251$544 thousand in the prior year firstsecond quarter.

The efficiency ratio was 63.0556.65 percent in the current quarter compared to 61.0463.05 percent in the prior quarter and 65.4962.08 percent in the prior year firstsecond quarter. The increasedecrease from the prior quarter was principallyprimarily driven by the combination of a decrease in non-interest expense and an increase in acquisition-relatednet expenses.interest income. The decrease from the prior year firstsecond quarter was primarily due to the increase in net interest income which outpaced the increase in non-interest expense.

Net charge-offs for the current quarter were $3.1$5.9 million compared to $6.4$3.1 million in the prior quarter and $1.8$1.6 million for the prior year firstsecond quarter. The current quarter net charge-offs included $2.2$2.8 million in deposit overdraft net charge-offs and $896$3.1 thousandmillion of net loan charge-offs.

The current quarter provision for credit loss expense of $6.1$6.4 million included $3.5$10.1 million of credit loss expense on loans and $2.6$3.7 million of credit loss expensebenefit on unfunded loan commitments.

The allowance for credit losses (“ACL”) on loans as a percentage of total loans outstanding was 1.22 percent at each of MarchJune 31,30, 2026, December 31, 2025 and MarchJune 31,30, 2025. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts, actual results, and other environmental factors will continue to determine the level of the ACL on loans. The determination of the ACL on loans and the related provision for credit losses is a critical accounting estimate that involves management’s judgments about the loan portfolio that impact credit losses. For additional information on the allowance, see the Allowance For Credit Losses section under “Additional Management’s Discussion and Analysis.”

1 Includes tax effect of 3.7$3.6 million, 3.6$3.5 million and 3.4$3.7 million on tax-exempt municipal loan and lease income, tax-exempt debt securities income and federal income tax credits for the three months ended MarchJune 31,30, 2026 , December 31, 2025, and2026, March 31, 2026, and June 30, 2025, respectively. Includes tax effect of $7.3 million and $6.9 million on tax-exempt municipal loan and lease income, tax-exempt debt securities income and federal income tax credits for the six months ended June 30, 2026 and June 30, 2025, respectively.

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,short weighted-average life U.S. agency guaranteed residential and commercial mortgage pass-through securities and to a lesser extent, short,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.

The following table presents the carrying amount and weighted-average yield of AFS (at fair value) and HTM (at amortized cost) debt securities by contractual maturity at MarchJune 31,30, 2026. 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 federal income tax benefit.

Based on an analysis of its AFS debt securities with unrealized losses as of MarchJune 31,30, 2026, the Company determined the 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 MarchJune 31,30, 2026 on either category.

For additional information on the Company’s debt securities, see Note 2 to the Unaudited Condensed Consolidated Financial Statements in “Part I. Item 1. Financial Statements.”

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 included in this section of “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” 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 of loans is provided in the section captioned “Loans by Regulatory Classification” included in “Part I. Item 2. 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. Loan information included in “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” is based on the Company’s loan segments, which are based on the purpose of the loan, unless otherwise noted as a regulatory classification. The following table summarizes the Company’s loan portfolio as of the dates indicated:

The following table summarizes the Company’s CRE portfolio by geographic location, including occupancylocation as of the date indicated:

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 $802.0$823.9 million with an average loan-to-value ratio (“LTV”) of 57% as of MarchJune 31,30, 2026.

Non-performing assets of $79.5$91.8 million at MarchJune 31,30, 2026 increased $10.6$12.4 million, or 1516 percent, over the prior quarter and increased $40.2$43.2 million, or 10289 percent, over the prior year firstsecond quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $91.8$65.5 million at MarchJune 31,30, 2026 increaseddecreased $12.9$26.3 million from the prior quarter and increased $45.3$11.1 million from the prior year firstsecond quarter. Early stage delinquencies as a percentage of loans at MarchJune 31,30, 2026 were 0.440.31 percent compared to 0.380.44 percent for the prior quarter and 0.270.29 percent for the prior year firstsecond quarter and remain at historically low levels for the Company.quarter.

For additional information on accounting policies relating to non-performing assets, see Note 1 to the Unaudited Condensed Consolidated Financial Statements in “Part I. Item 1. Financial Statements.”

Modifications to Borrowers Experiencing Financial Difficulty The Company identifies and monitors MBFD loans. The Company considers some of the indicators that a borrower is experiencing financial difficulty to be: current payment default on any of their debt, declaring bankruptcy, going concern, borrower’s securities have been delisted, and other indicators of inability to meet obligations. Each debt modification is separately negotiated with the borrower and includes terms and conditions that reflect the borrower’s prospective ability to service their obligations as modified. Such loans at MarchJune 31,30, 2026 had an amortized cost of $2.3$22.0 million.