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What changed in GLACIER BANCORP, INC.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of GLACIER BANCORP, INC.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+346 added−360 removedSource: 10-K (2026-02-25) vs 10-K (2025-02-25)

Top changes in GLACIER BANCORP, INC.'s 2025 10-K

346 paragraphs added · 360 removed · 289 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

96 edited+20 added−45 removed26 unchanged
Biggest changeThe bank divisions operate under separate names, management teams and advisory directors and include the following: • Glacier Bank (Kalispell, Montana) with operations in Montana; • First Security Bank of Missoula (Missoula, Montana) with operations in Montana; • Valley Bank (Helena, Montana) with operations in Montana; • First Security Bank (Bozeman, Montana) with operations in Montana; • Western Security Bank (Billings, Montana) with operations in Montana; • First Bank of Montana (Lewistown, Montana) with operations in Montana; • Mountain West Bank (Coeur d’Alene, Idaho) with operations in Idaho and Washington; • Citizens Community Bank (Pocatello, Idaho) with operations in Idaho; • First Bank (Powell, Wyoming) with operations in Wyoming; • First State Bank (Wheatland, Wyoming) with operations in Wyoming; • Wheatland Bank (Chelan, Washington) with operations in Washington; • First Community Bank Utah (Layton, Utah) with operations in Utah; • Altabank (American Fork, UT) with operations in Utah and Idaho; • Bank of the San Juans (Durango, Colorado) with operations in Colorado; • Collegiate Peaks Bank (Buena Vista, Colorado) with operations in Colorado; • The Foothills Bank (Yuma, Arizona) with operations in Arizona; and • Heritage Bank of Nevada (Reno, NV) with operations in Nevada.
Biggest changeThe bank divisions operate under separate names, management teams and advisory directors and consist of the following: • The Foothills Bank (Yuma, Arizona) with operations in Arizona; • Bank of the San Juans (Durango, Colorado) with operations in Colorado; • Collegiate Peaks Bank (Buena Vista, Colorado) with operations in Colorado; • Citizens Community Bank (Pocatello, Idaho) with operations in Idaho; • Mountain West Bank (Coeur d’Alene, Idaho) with operations in Idaho and Washington; • First Bank of Montana (Lewistown, Montana) with operations in Montana; • First Security Bank (Bozeman, Montana) with operations in Montana; • First Security Bank of Missoula (Missoula, Montana) with operations in Montana; • Glacier Bank (Kalispell, Montana) with operations in Montana; • Valley Bank (Helena, Montana) with operations in Montana; • Western Security Bank (Billings, Montana) with operations in Montana; • Heritage Bank of Nevada (Reno, NV) with operations in Nevada; • Guaranty Bank & Trust (Mount Pleasant, TX) with operations in Texas; • Altabank (American Fork, UT) with operations in Utah and Idaho; • First Community Bank Utah (Layton, Utah) with operations in Utah; • Wheatland Bank (Chelan, Washington) with operations in Washington; • First Bank (Powell, Wyoming) with operations in Wyoming; and • First State Bank (Wheatland, Wyoming) with operations in Wyoming.
In relevant part, the Patriot Act 1) prohibits banks from providing correspondent accounts directly to foreign shell banks; 2) imposes due diligence requirements on banks opening or holding accounts for foreign financial institutions or wealthy foreign individuals; 3) requires financial institutions to establish an anti-money laundering compliance program; and 4) eliminates civil liability for persons who file suspicious activity reports.
In relevant part, the PATRIOT Act 1) prohibits banks from providing correspondent accounts directly to foreign shell banks; 2) imposes due diligence requirements on banks opening or holding accounts for foreign financial institutions or wealthy foreign individuals; 3) requires banks to establish an anti-money laundering compliance program; and 4) eliminates civil liability for persons who file suspicious activity reports.
For select management-level employees, we also offer our Long-Term Incentive Plans, which is an equity-based compensation plan that is designed to encourage achievement of long-term financial goals as our determined by the Company’s Board of Directors (the “Board”) from time to time, and to further retention through long-term vesting of certain awards earned.
For select management-level employees, we also offer our long-term incentive plan, which is an equity-based compensation plan that is designed to encourage achievement of long-term financial goals as determined by the Company’s Board of Directors (the “Board”) from time to time, and to further retention through long-term vesting of certain awards earned.
For example, with certain exceptions, we may not condition an extension of credit to a customer on either 1) a requirement that the customer obtain additional services provided by us; or 2) an agreement by the customer to refrain from obtaining other services from a competitor. Support of Bank Subsidiaries .
For example, with certain exceptions, we may not condition an extension of credit to a customer on either 1) a requirement that the customer obtain additional services from us; or 2) an agreement by the customer to refrain from obtaining other services from a competitor. Support of Bank Subsidiaries.
This means that the Company is required to commit, as necessary, capital and 7 resources to support the Bank, including at times when the Company may not be in a financial position to provide such resources or when it may not be in the Company's or its shareholders' best interests to do so.
This means that the Company is required to commit, as necessary, capital and resources to support the Bank, including at times when the Company may not be in a financial position to provide such resources or when it may not be in the Company's or its shareholders' best interests to do so.
Any capital loans a bank holding company makes to its bank subsidiaries are subordinate to deposits and to certain other indebtedness of the bank subsidiaries. State Law Restrictions under Corporate Law. As a Montana corporation, the Company is subject to certain limitations and restrictions under applicable Montana corporate law.
Any capital loans a bank holding company makes to its bank subsidiaries are subordinate to deposits and to certain other indebtedness of the bank subsidiaries. 7 Restrictions under State Corporate Law. As a Montana corporation, the Company is subject to certain limitations and restrictions under applicable Montana corporate law.
The application of these regulations may result in lower returns on invested capital, require the raising of additional capital or require regulatory action if the Bank were unable to comply with such requirements.
The application of these regulations may result in lower returns on invested capital, which may require raising additional capital or regulatory action if the Bank were unable to comply with such requirements.
The imposition of liquidity requirements in connection with these rules could also cause the Bank to increase its holdings of liquid assets, change its business strategy, and make other changes to the terms of its funding. 10 Regulatory Oversight and Examination Inspections. The Federal Reserve conducts periodic inspections of bank holding companies.
The imposition of liquidity requirements in connection with these rules could also cause the Bank to increase its holdings of liquid assets, change its business strategy, and make other changes to the terms of its funding. 9 Regulatory Oversight and Examination Inspections. The Federal Reserve conducts periodic inspections of bank holding companies.
The Company is a publicly-traded company and its common stock trades on the New York Stock Exchange (“NYSE”) under the symbol: GBCI. We provide a full range of banking services to individuals and businesses from 227 locations in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona and Nevada through our wholly-owned bank subsidiary, Glacier Bank (“Bank”).
The Company is a publicly-traded company and its common stock trades on the New York Stock Exchange (“NYSE”) under the symbol: GBCI. We provide a full range of banking services to individuals and businesses from 281 locations in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, Nevada, and Texas through our wholly-owned bank subsidiary, Glacier Bank (the “Bank”).
Nevertheless, failure to comply with these laws and regulations may subject the Bank to various penalties, including but not limited to enforcement actions, injunctions, fines, civil monetary penalties, criminal penalties, punitive damages, and the loss of certain contractual rights.
Any failure to comply with these laws and regulations may subject the Bank to various penalties, including but not limited to enforcement actions, injunctions, fines, civil monetary penalties, criminal penalties, punitive damages, and the loss of certain contractual rights.
The following table summarizes our number of locations, the number of counties we serve and the percentage of Federal Deposit Insurance Corporation (“FDIC”) insured deposits we have in those counties for each of the eight states we operate in.
The following table summarizes our number of locations, the number of counties we serve and the percentage of Federal Deposit Insurance Corporation (“FDIC”) insured deposits we have in those counties for each of the nine states we operate in.
Further, because the Bank is a “regional banking organization” under Montana law, the Company (as a bank holding company of the Bank) is also subject to regulation, supervision and examination by the MT Division of Banking.
Further, because the Bank is a “regional banking organization” under Montana law, the Company is also subject to regulation, supervision, and examination by the MT Division of Banking. Holding Company Bank Ownership.
Percent of deposits are based on the FDIC summary of deposits survey as of June 30, 2024 and does not include any bank division acquired after such date.
Percent of deposits are based on the FDIC summary of deposits survey as of June 30, 2025 and does not include any bank division acquired after such date.
The Company is also subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, which are both administered by the SEC.
In addition, the Company is also subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, which are both administered by the SEC.
Bank subsidiaries of a bank holding company are subject to restrictions imposed by the Federal Reserve Act on extensions of credit to the holding company or its subsidiaries, on investments in securities, and on the use of securities as collateral for loans to any borrower.
Under the Federal Reserve Act, bank subsidiaries of a bank holding company are subject to restrictions on extensions of credit to the bank holding company or its subsidiaries, on investments in securities, and on the use of securities as collateral for loans to any borrower.
These extensions of credit 1) must be made on substantially the same terms (including interest rates and collateral); 2) follow credit underwriting procedures that are at least as stringent as those prevailing at the time the credit is underwritten for comparable transactions with persons not related to the lending bank; and 3) must not involve more than the normal risk of nonpayment or present other unfavorable features.
In general, a covered transaction must 1) be made on substantially the same terms (including interest rates and collateral); 2) follow credit underwriting procedures that are at least as stringent as those prevailing at the time the credit is underwritten for comparable transactions with persons not related to the lending bank; and 3) not involve more than the normal risk of nonpayment or present other unfavorable features.
Banks are also subject to certain lending limits and restrictions on overdrafts to insiders. A violation of these restrictions may result in the assessment of substantial civil monetary penalties, regulatory enforcement actions, and other regulatory sanctions.
Banks are also subject to lending limits and restrictions on overdrafts and loans to insiders. A violation of these restrictions may result in the assessment of substantial civil monetary penalties, regulatory enforcement actions, and other regulatory sanctions. Regulation of Management.
For example, regulators have stated that paying dividends that deplete an institution's capital base to an inadequate level would be an unsafe and unsound banking practice and that an institution should generally pay dividends only out of current operating earnings.
For example, regulators have stated that paying dividends that deplete an institution's capital base to an inadequate level would be an unsafe and unsound banking practice, and dividends should only be paid out of current operating earnings.
Additional information regarding Board committees is set forth under the heading “Meetings and Committees of the Board of Directors - Committees and Committee Membership” in the Company’s 2025 Annual Meeting Proxy Statement (“2025 Proxy Statement”) and is incorporated herein by reference.
Additional information regarding Board committees is set forth under the heading “Meetings and Committees of the Board of Directors - Committees and Committee Membership” in the Company’s 2026 Annual Meeting Proxy Statement (“2026 Proxy Statement”) and is incorporated herein by reference.
In general, the policy statement expresses the view that although no specific regulations restrict dividend payments by bank holding companies other than state corporate laws, a bank holding company should not pay cash dividends unless the bank holding company’s earnings for the past year are sufficient to cover both the cash dividends and a prospective rate of earnings retention that is consistent with the bank holding company’s capital needs, asset quality, and overall financial condition.
In general, it notes that, although no specific regulations restrict dividend payments by bank holding companies (other than state corporate laws), a bank holding company should not pay cash dividends unless its earnings for the past year are sufficient to cover both the cash dividends and a prospective rate of earnings retention that is consistent with its capital needs, asset quality, and overall financial condition.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The Company includes the parent holding company and the Bank. As of December 31, 2024, the Bank consists of seventeen bank divisions and a corporate division.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The Company includes the parent holding company and the Bank. As of December 31, 2025, the Bank consists of eighteen bank divisions and a corporate division.
Generally, the GLBA 1) repealed historical restrictions on preventing banks from affiliating with securities firms; 2) provided a uniform framework for the activities of banks, savings institutions, and their holding companies; 3) broadened the activities that may be conducted by national banks and banking subsidiaries of bank holding companies; 4) provided an enhanced framework for protecting the privacy of consumer information, and established the requirement to notify consumers of bank privacy policies; and 5) addressed a variety of other legal and regulatory issues affecting both day-to-day operations and long-term activities of financial institutions.
For instance, the GLBA 1) repealed historical restrictions on preventing banks from affiliating with securities firms; 2) provided a uniform framework for the activities of banks, savings institutions, and their holding companies; 3) broadened the activities that may be conducted by national banks and banking subsidiaries of bank holding companies; 4) provided an enhanced framework for protecting the privacy of consumer information; and 5) addressed a variety of other matters affecting both day-to-day operations and long-term activities of financial institutions.
Among other matters, the SOX Act 1) requires chief executive officers and chief financial officers to certify to the accuracy and completeness of periodic reports filed with the SEC and to certain matters relating to disclosure and accounting controls at public companies; 2) imposes specific and enhanced corporate disclosure requirements; 3) accelerates the time frame for reporting insider transactions and periodic disclosures by public companies; and 4) requires companies to adopt and disclose information about corporate governance practices.
For example, the SOX Act 1) requires certain executive officers to certify as to the accuracy and completeness of periodic reports filed with the SEC and to certain matters relating to disclosure and accounting controls; 2) imposes specific and enhanced corporate disclosure requirements; 3) accelerates the time frame for reporting insider transactions and periodic disclosures; and 4) requires companies to adopt and disclose information about corporate governance practices.
Copies can also be obtained by accessing the SEC’s website (www.sec.gov). 6 Supervision and Regulation We are subject to extensive regulation under federal and state laws. This section provides a general overview of the federal and state regulatory framework applicable to us.
Copies can also be obtained by accessing the SEC’s website (www.sec.gov). 6 Supervision and Regulation We are subject to extensive regulation under federal and state law. This section provides a general overview of the federal and state regulatory framework that applies to us and our industry.
The information security program must be designed to ensure the security and confidentiality of customer information, protect against any unanticipated threats or hazards to the security or integrity of such information, protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to any customer, and ensure the proper disposal of consumer information.
This program must be designed to maintain the security and confidentiality of customer information, protect against any unanticipated threats or hazards to the security or integrity of such information, protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to any customer, and properly dispose of consumer information.
A bank’s community reinvestment record is also considered by the applicable banking agencies in evaluating mergers, acquisitions, and applications to open a branch or facility. In some cases, a bank's failure to comply with the CRA, or CRA protests filed by interested parties during applicable comment periods, can result in the denial or delay of such transactions.
Importantly, certain agencies consider a bank’s community reinvestment record when evaluating mergers, acquisitions, and applications to open a branch or facility. In some cases, a bank's failure to comply with the CRA, or CRA protests filed by interested parties during comment periods, can result in the denial or delay of such transactions.
For example, Montana corporate law includes limitations and restrictions relating to indemnification of directors, distributions to shareholders, transactions involving directors, officers, or interested shareholders, maintenance of books, records, and minutes, and observance of certain corporate formalities. Federal and State Regulation of the Bank General . Deposits in the Bank are insured by the FDIC.
For example, Montana corporate law includes limitations and restrictions relating to indemnification of directors, distributions to shareholders, transactions involving directors, officers, or interested shareholders, and requires the observance of certain corporate formalities, including the maintenance of books, records, and minutes. Federal and State Regulation of the Bank General.
The Bank is subject to regulation and supervision by the FDIC, the MT Division of Banking, and, with respect to Bank branches outside of the State of Montana, the respective regulators in those states.
The Bank is subject to regulation and supervision by the FDIC, the MT Division of Banking, and, for branches outside of the State of Montana, the respective regulatory agencies in those states.
Descriptions of statutory or regulatory provisions do not purport to be complete and are qualified by reference to those provisions. These statutes and regulations, as well as related regulatory policies, continue to be subject to change by Congress, state legislatures, and federal and state regulators.
Any descriptions of statutory or regulatory provisions in this section do not purport to be complete and are qualified by reference to those provisions. Banking laws and regulations, as well as related regulatory policies and priorities, continue to be subject to change by Congress, state legislatures, and federal and state regulators.
Under Federal Reserve policy and the Dodd-Frank Act, the Company is required to act as a source of financial and managerial strength to the Bank.
Under federal law, the Company is required to act as a source of financial and managerial strength to the Bank.
The Bank is closely monitoring changes (and challenges) to these laws and regulations and has established a comprehensive compliance system to ensure consumer protection. Community Reinvestment .
The Bank is closely monitoring changes (and challenges) to these laws and regulations and has established a comprehensive compliance system to support efforts to maintain compliance. Community Reinvestment.
In general, this regulatory framework is designed to protect depositors, the federal Deposit Insurance Fund (“DIF”), and the federal and state banking systems as a whole, rather than to specifically protect shareholders. Note that this section is not intended to summarize all laws and regulations applicable to us.
In general, this framework is designed to protect depositors, the federal Deposit Insurance Fund (“DIF”), and the federal and state banking systems (rather than to protect shareholders specifically). Importantly, this section is not intended to summarize all laws and regulations that may apply to us from time to time.
Competition is also increasing for deposit and lending services from internet-based competitors. Non-depository financial service institutions, primarily in the securities, insurance and retail industries, have also become competitors for retail savings, investment funds and lending activities.
Non-depository financial service institutions, primarily in the securities, insurance and retail industries, have also become competitors for retail savings, investment funds and lending activities.
The federal laws that apply to the Bank regulate, among other things, the scope of its business, its investments, its reserves against deposits, the timing of the availability of deposited funds, and the nature, amount of, and collateral for loans. Federal laws also regulate community reinvestment and insider credit transactions and impose safety and soundness standards.
The federal laws that apply to the Bank regulate, among other things, the scope of the Bank’s business, its investments, its reserves against deposits, the availability of deposited funds, lending and community reinvestment activities, insider credit transactions, and safety and soundness standards.
The FDIC may terminate the deposit insurance of any insured depository institution, after a hearing, if the FDIC determines that the institution has engaged or is engaging in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, order, or any condition imposed by an agreement with the FDIC.
For example, termination may occur if the FDIC determines (after a hearing) that an institution has engaged (or is engaging) in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, order, or condition imposed under an agreement with the FDIC.
In general, the objectives of the Federal Reserve's inspection program are to ascertain whether the financial strength of a bank holding company is maintained on an ongoing basis and to determine the effects or consequences of transactions between a bank holding company or its non-banking subsidiaries and its bank subsidiaries.
In general, inspections are designed to ascertain whether the financial strength of a bank holding company is maintained on an ongoing basis and to determine the effects or consequences of transactions between a bank holding company and its affiliates, including its bank subsidiaries.
Under the prompt corrective action requirements, which are designed to complement the capital conservation buffer, insured depository institutions are required to meet the following increased capital level requirements to qualify as “well capitalized”: 1) a Tier 1 common equity capital ratio of at least 6.5 percent; 2) a Tier 1 capital ratio of at least 8 percent; 3) a total capital ratio of at least 10 percent; 4) a Tier 1 leverage ratio of at least 5 percent; and 5) not be subject to any order or written directive requiring a specific capital level.
Under this framework, an institution is required to meet the following increased capital level requirements to qualify as “well capitalized”: 1) a Tier 1 common equity capital ratio of at least 6.5 percent; 2) a Tier 1 capital ratio of at least 8 percent; 3) a total capital ratio of at least 10 percent; 4) a Tier 1 leverage ratio of at least 5 percent; and 5) not be subject to any order or written directive requiring a specific capital level.
The Community Reinvestment Act of 1977 (“CRA”) requires that, in connection with examinations of financial institutions within their jurisdictions, federal bank regulators evaluate the record of financial institutions in meeting the credit needs of their local communities, including low and moderate-income neighborhoods, consistent with the safe and sound operation of those institutions.
The Community Reinvestment Act of 1977 (“CRA”) requires federal bank regulators to evaluate the record of a financial institution in meeting the credit needs of its local communities, including low- and moderate- income neighborhoods, consistent with the safe and sound operation of the institution.
The regulations also require a capital conservation buffer designed to absorb losses during periods of economic stress. Failure to comply with this buffer requirement may result in constraints on capital distributions ( e.g. , dividends, equity repurchases, and certain bonus compensation for executive officers).
Federal regulations also require a capital conservation buffer designed to absorb losses during periods of economic stress. Failure to comply with these requirements may result in constraints on an institution’s capital distributions (e.g., dividends, equity repurchases, and certain bonus compensation for executive officers). The regulations also adjust risk-weights of certain assets and phase out certain instruments as qualifying capital.
Changes in statutes, regulations, or regulatory policies applicable to us (including their interpretation or implementation) cannot be predicted and could have a material effect on our business and operations.
We cannot predict changes in statutes, regulations, or regulatory policies applicable to us (including their interpretation or implementation), and certain changes could have a material effect on our business and operations. In recent years, changes to applicable statutes, regulations, and regulatory policies have been constant and sometimes contradictory.
Through its open market operations in U.S. 12 government securities, control of the discount rate applicable to borrowings, establishment of reserve requirements against certain deposits, and control of the interest rate applicable to excess reserve balances and reverse repurchase agreements, the Federal Reserve influences the availability and cost of money and credit and, ultimately, a range of economic variables including employment, output, and the prices of goods and services.
Through its open market operations in U.S. government securities, control of the discount and interest rates, and deposit reserve requirements, the Federal Reserve influences the availability and cost of money and credit and, ultimately, a range of economic variables including employment, output, and the prices of goods and services.
In addition, each insured depository institution must implement a comprehensive written information security program that includes administrative, technical, and physical safeguards appropriate to the institution’s size and complexity and the nature and scope of its activities.
In part, a bank must implement a comprehensive written information security program with administrative, technical, and physical safeguards appropriate to its size and complexity and the nature and scope of its activities.
An institution that fails to meet these standards may be required to submit a compliance plan, or be subject to regulatory sanctions, including restrictions on growth. The Bank has established comprehensive policies and risk management procedures to ensure the safety and soundness of the Bank.
If a bank fails to meet these standards, it may be required to submit a compliance plan or be subject to regulatory sanctions. The Bank has established comprehensive policies and risk management procedures to preserve its safety and soundness.
We have established comprehensive compliance programs designed to comply with the requirements of the BSA and the Patriot Act. Financial Services Modernization The Gramm-Leach-Bliley Financial Services Modernization Act of 1999 (“GLBA”) brought about significant changes to the laws affecting banks and bank holding companies.
We have established comprehensive compliance programs designed to comply with the requirements of the BSA and the PATRIOT Act. Financial Services Modernization In 1999, the Gramm-Leach-Bliley Financial Services Modernization Act (“GLBA”) introduced significant changes to the banking legal landscape.
In recent years, the CFPB has continued to focus its enforcement and rule making efforts on certain types of fees commonly charged by financial institutions. In addition, the CFPB has recently focused on the use of artificial intelligence, emerging paycheck advance products, financial data privacy, digital payment applications, and open banking.
In recent years, the CFPB focused on certain types of fees commonly charged by financial institutions, consumer complaints, the use of artificial intelligence (“AI”), paycheck advance products, data privacy, digital payment applications, and open banking.
The Bank is subject to a variety of federal and state consumer protection laws and regulations that govern its relationships and interactions with consumers, including laws and regulations that impose certain disclosure requirements and that govern the manner in which the Bank takes deposits, makes and collects loans, and provides other services.
In addition to federal and Montana law, the Bank is also subject to the laws of various states within the Bank’s footprint. Consumer Protection. A variety of federal and state consumer protection laws and regulations govern the Bank’s interactions with consumers, including the manner in which the Bank takes deposits, makes and collects loans, and provides other services.
These standards cover, among other things, internal controls, information systems and internal audit systems, loan documentation, credit underwriting, 8 interest rate exposure, asset growth, compensation, fees and benefits, other operational and managerial standards as the agency determines to be appropriate, and standards for asset quality, earnings, and stock valuation.
Safety and Soundness Standards. Banks are subject to certain non-capital safety and soundness standards. These standards cover, among other things, internal controls, information systems and internal audit systems, loan documentation, credit underwriting, interest rate exposure, asset growth, compensation, fees and benefits, operational and managerial standards, asset quality, earnings, and stock valuation.
Anti-Money Laundering and Anti-Terrorism The Bank Secrecy Act, as amended by the Anti-Money Laundering Act of 2020 (“BSA”), requires all financial institutions to establish a risk-based system of internal controls reasonably designed to prevent money laundering and the financing of terrorism, including the development of standards for testing technology and internal processes for BSA compliance.
Anti-Money Laundering and Anti-Terrorism The federal Bank Secrecy Act (“BSA”) requires all financial institutions to establish a risk-based system of internal controls reasonably designed to prevent money laundering and the financing of terrorism.
The capital requirements are intended to ensure that institutions have adequate capital given the risk levels of assets and off-balance sheet financial instruments and are applied separately to the Company and the Bank.
These requirements, which are applied independently to the Company and the Bank, are intended to confirm that an institution has adequate capital given the risk levels of its assets and off-balance sheet financial instruments.
The Company is subject to regulation and supervision by the Federal Reserve and the Montana Department of Administration’s Division of Banking and Financial Institutions (“MT Division of Banking”) and regulation generally by the State of Montana.
With respect to the Company, these agencies include the Federal Reserve, the Montana Department of Administration’s Division of Banking and Financial Institutions (“MT Division of Banking”), and the State of Montana, generally.
Federal regulations require insured depository institutions and bank holding companies to meet several minimum capital standards, including: 1) a common equity Tier 1 capital to risk-based assets ratio of 4.5 percent; 2) a Tier 1 capital to risk-based assets ratio of 6 percent; 3) a total capital to risk-based assets ratio of 8 percent; and 4) a 4 percent Tier 1 capital to total assets leverage ratio.
Under federal law, minimum capital standards include: 1) a common equity Tier 1 capital to risk-based assets ratio of 4.5 percent; 2) a Tier 1 capital to risk-based assets ratio of 6 percent; 3) a total capital to risk-based assets ratio of 8 percent; and 4) a Tier 1 capital to total assets leverage ratio of 4 percent.
Number of Locations Number of Counties Served Percent of Deposits Montana 68 20 25.9 % Idaho 30 11 8.6 % Utah 38 9 0.3 % Washington 25 11 5.8 % Wyoming 19 10 15.8 % Colorado 23 14 1.8 % Arizona 17 7 0.9 % Nevada 7 3 6.3 % Total 227 85 5 Human Capital As of December 31, 2024, we employed 3,595 persons, 3,313 of whom were employed full time.
Number of Locations Number of Counties Served Percent of Deposits Montana 70 20 26.9 % Idaho 39 13 10.8 % Utah 39 10 0.3 % Washington 29 13 5.8 % Wyoming 20 10 15.3 % Colorado 23 13 1.8 % Arizona 17 7 0.9 % Nevada 7 3 5.9 % Total 244 89 5 Human Capital As of December 31, 2025, we employed 4,188 persons, 3,927 of whom were employed full time.
Examinations alternate between the federal and state bank regulatory agencies, and in some cases they may occur on a combined schedule. The frequency of consumer compliance and CRA examinations is linked to the size of the institution and its compliance and CRA ratings at its most recent examinations.
Examinations typically alternate between the federal and state bank regulators and, in some cases, may occur on a combined schedule. The frequency of examinations is linked to the size of an institution and recent examination findings.
The Bank also has subsidiary interests in VIEs for which the Bank does not have a controlling financial interest and is not the primary beneficiary. These subsidiary interests are not included in the Company’s consolidated financial statements. The parent holding company owns non-bank subsidiaries that have issued trust preferred securities which qualify as Tier 2 regulatory capital instruments.
The Bank also has subsidiary interests in VIEs for which the Bank does not have a controlling financial interest and is not the primary beneficiary. These subsidiary interests are not included in the Company’s consolidated financial statements. The Bank also has non-bank subsidiaries which hold certain bank investments.
Department of the Treasury, administers the BSA and determines the policy priorities for anti-money laundering and countering the financing of terrorism. The priorities include: corruption, cybercrime, terrorist financing, fraud, transnational crime, drug trafficking, human trafficking, and proliferation financing. FinCEN is also responsible for implementing the access and safeguard provisions of the Corporate Transparency Act.
The Financial Crimes Enforcement Network of the U.S. Department of the Treasury (“FinCEN”) administers the BSA and determines policy priorities for anti-money laundering and countering the financing of terrorism. The priorities currently include corruption, cybercrime, terrorist financing, fraud, transnational crime, drug trafficking, human trafficking, and proliferation financing.
Corporate Governance and Accounting The Sarbanes-Oxley Act of 2002 (“SOX Act”) addresses, among other things, corporate governance, auditing and accounting, enhanced and timely disclosure of corporate information, and penalties for non-compliance.
The regulators typically allocate supervisory resources to institutions that have significant CRE loan concentration risk. Corporate Governance and Accounting The Sarbanes-Oxley Act of 2002 (“SOX Act”) addresses, among other things, corporate governance, auditing and accounting, disclosure of corporate information, and penalties for non-compliance.
The regulations contain other capital classification categories, such as “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized,” each of which are based on differing capital ratios. Undercapitalized institutions are subject to certain mandatory restrictions, including on capital distributions and growth. Significantly undercapitalized and critically undercapitalized institutions are subject to additional restrictions.
In addition to “well capitalized,” the regulations contain other capital classifications, such as “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized” (each of which are based on differing capital ratios). Importantly, if an institution is deemed “undercapitalized,” it may be subject to certain mandatory restrictions ( e.g. , restrictions on capital distributions and growth).
In general, the BHCA limits the business of a bank holding company to owning or controlling banks and engaging in, or retaining or acquiring shares in a company engaged in, other activities closely related to the business of banking. In addition, the Company must also file reports with and provide additional information to the Federal Reserve. Holding Company Bank Ownership.
The Company is a “bank holding company” under the Bank Holding Company Act of 1956, as amended (“BHCA”). In general, the BHCA limits the business of a bank holding company to owning or controlling banks and engaging in, or retaining or acquiring ownership in a company engaged in, other activities closely related to the business of banking.
As of December 31, 2024, the Company and its subsidiaries were not engaged in any operations in foreign countries. 4 Recent Acquisitions Our strategy is to profitably grow our business through internal growth and selective acquisitions. We continue to look for expansion opportunities primarily in existing and new markets in the Rocky Mountain and Western states.
Recent Acquisitions Our strategy is to profitably grow our business through internal growth and selective acquisitions. We continue to look for expansion opportunities primarily in existing and new markets in the Mountain West region and Southwest region.
A bank holding company's ability to pay dividends may also be restricted if a subsidiary bank becomes undercapitalized. The various laws and regulatory policies applicable to the Company and the Bank may limit our ability to pay dividends or otherwise engage in capital distributions. The Dodd-Frank Act General .
A bank holding company's ability to pay dividends may also be restricted if a subsidiary bank becomes undercapitalized. These types of laws and policies may limit our ability to pay dividends or otherwise engage in capital distributions. Consumer Financial Protection Bureau . The CFPB has rulemaking, supervision, and enforcement authority for a wide range of consumer protection laws.
Financial Statements and Supplementary Data.” Market Area and Competition We have 227 locations, which consist of 194 branches and 33 loan or administration offices, in 85 counties within eight states including Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona and Nevada. The market area’s diversified economic base primarily focuses on tourism, construction, mining, energy, manufacturing, agriculture, service industries, and health care.
Financial Statements and Supplementary Data.” Market Area and Competition We have 281 locations, which consist of 236 branches and 45 loan or administration offices, in 108 counties within nine states including Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, Nevada, and Texas.
Numerous changes to the statutes, regulations, and regulatory policies applicable to us have been proposed or made in recent years and the pace of change has been exacerbated by the changing political climate. Continued efforts to monitor and comply with new and changing regulatory requirements add to the complexity and cost of our business and operations.
The pace of change has been exacerbated by the volatile political climate and conflicting initiatives between federal and state governments. Continued efforts to monitor and comply with new and changing statutory and regulatory requirements add to the complexity and cost of our business and operations. We are subject to regulation and supervision by numerous federal and state agencies.
Rules adopted in accordance with the third installment of the Basel Accords (“Basel III”) also impose limitations on the Bank's ability to pay dividends. In general, these rules limit the Bank's ability to pay dividends unless the Bank's common equity conservation buffer exceeds the minimum required capital ratio by at least 2.5 percent of risk-weighted assets.
In general, the Basel III Endgame limits a bank's ability to pay dividends unless its common equity conservation buffer exceeds the minimum required capital ratio by at least 2.5 percent of risk-weighted assets. Although rules implementing the final phase of Basel regulations have been proposed in the past, they have not yet been adopted.
Financial Statements and Supplementary Data.” The Federal regulations also address the prompt corrective action framework, which is designed to place restrictions on an insured depository institution if its capital levels begin to show signs of weakness.
For additional information regarding trust preferred securities and their impact to regulatory capital, see Note 13 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.” A federal prompt corrective action framework is in place to, under certain circumstances, place restrictions on an institution if its capital levels begin to show signs of weakness.
The nature and impact of future changes in monetary policies and their impact on us cannot be predicted with certainty. Cybersecurity Federal banking regulators regularly issue new guidance and standards, and update existing guidance and standards, intended to enhance cyber risk management among financial institutions.
We cannot predict the impact that any future changes in monetary policy may have on us. Cybersecurity Federal banking regulators regularly issue new (and update existing) guidance in an effort to enhance cyber risk management. Financial institutions are expected to comply with such guidance and to develop appropriate security controls and risk management processes.
Among other types of computer-security incidents, a “notification incident” includes one that has materially disrupted or degraded the banking organization’s ability to carry out banking operations to a material portion of its customer base in the ordinary course of business.
This may include, among other types of incidents, an incident that has materially disrupted or degraded a bank’s ability to carry out banking operations to a material portion of its customer base in the ordinary course of business. In addition to federal law, an increasing number of states have established regulations requiring financial institutions to implement cybersecurity programs.
These regulations and restrictions may limit the Company’s ability to obtain funds from the Bank for its cash needs, including funds for payments of dividends, interest, and operational expenses. Tying Arrangements . We are also prohibited from engaging in certain tie-in arrangements in connection with any extension of credit, sale or lease of property, or furnishing of services.
In addition to those activities, credit exposure arising from derivative transactions, securities lending, and borrowing transactions is also covered by the regulations. These regulations and restrictions may limit the Company’s ability to obtain funds from the Bank for its cash needs, including funds for payments of dividends, interest on borrowings, and operational expenses. Tying Arrangements.
The FDIC determines the assessment rate for insured depository institutions with more than $10 billion in assets under a “scorecard” methodology that seeks to capture both the probability that such an institution will fail and the magnitude of the impact on the DIF if such a failure occurs.
In the Bank’s case, the FDIC uses a “scorecard” methodology to determine the assessment rate. This methodology seeks to capture both the probability that an institution will fail and how such a failure may impact the DIF.
The trust subsidiaries are not included in our consolidated financial statements. Our investments in the trust subsidiaries are included in other assets on our statements of financial condition.
Our investments and 4 subordinated debentures to the consolidated trust subsidiaries are included in other assets and subordinated debentures, respectively, on our statements of financial condition. As of December 31, 2025, the Company and its subsidiaries were not engaged in any operations in foreign countries.
Federal law 1) sets forth circumstances under which officers or directors of a bank may be removed by the bank's federal supervisory agency; 2) as discussed above, places restraints on lending by a bank to its executive officers, directors, principal shareholders, and their related interests; and 3) generally prohibits management personnel of a bank from serving as directors or in other management positions of another financial institution whose assets exceed a specified amount or has an office within a specified geographic area.
With respect to management personnel, federal law sets forth circumstances under which officers or directors of a bank may be removed by the bank's federal supervisory agency. In some cases, federal law also prohibits a bank’s management personnel from serving as directors or in other management positions of another financial institution, depending upon such institution’s asset size and location.
Federal regulators have authority to approve applications by such banks to establish de novo branches in states other than the bank's home state if the host state's banks could establish a branch at the same location. The Interstate Act requires regulators to consult with community organizations before permitting an interstate institution to close a branch in a low-income area.
Interstate Banking and Branching Federal regulators can approve or reject a bank’s application to establish de novo branches in states other than the bank's home state and regulate the closure of interstate branches. In general, an application for a de novo branch is approved if the host state's banks could establish a branch at the same location.
Risks and exposures related to cybersecurity attacks, including litigation and enforcement risks, are expected to be elevated for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of internet banking, mobile banking and other technology-based products and services by us and our customers.
We are continually monitoring developments in the states in which our customers are located in an effort to maintain compliance with applicable cybersecurity-related requirements. 11 Risks and exposures related to cybersecurity attacks, including litigation and enforcement risks, are expected to be elevated for the foreseeable future due to the rapidly evolving nature and sophistication of technology.
The Reporting Rule has been subject to a number of legal challenges and the timing of its full implementation is uncertain. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, as renewed and amended in 2006, (“Patriot Act”) was enacted to combat terrorism.
The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the “PATRIOT Act”) was also enacted to combat terrorism.
The Company is a bank holding company under the Bank Holding Company Act of 1956, as amended (“BHCA”), due to its ownership of and control over the Bank. As a bank holding company, the Company is subject to regulation, supervision, and examination by the Federal Reserve.
As a bank holding company, the Company is subject to regulation, supervision, and examination by the Federal Reserve, and it must file reports and information with the Federal Reserve from time to time.
Banks are subject to certain restrictions on extensions of credit to executive officers, directors, principal shareholders, and their related interests.
The Bank received a “satisfactory” rating in its most recent CRA examination. Insider Credit Transactions. Banks are subject to restrictions on their ability to extend credit to executive officers, directors, principal shareholders, and their related interests.
As a general rule, regulatory authorities may prohibit banks and bank holding companies from paying dividends in a manner that would constitute an unsafe or unsound banking practice.
Dividends A principal source of the Company’s cash is from dividends received from the Bank, which are subject to regulation and limitation. An agency may prohibit a bank or bank holding company from paying dividends in a manner that would constitute an unsafe or 8 unsound banking practice.
We have completed the following acquisitions during the last five fiscal years: (Dollars in thousands) Date Total Assets Gross Loans Total Deposits Rocky Mountain Bank branches (“RMB”) July 19, 2024 $ 403,052 271,569 396,690 Community Financial Group, Inc. and its wholly-owned subsidiary, Wheatland Bank (collectively, “Wheatland”) January 31, 2024 777,705 452,740 616,955 Altabancorp and its wholly-owned subsidiary, Altabank (collectively, "Alta") October 1, 2021 4,131,662 1,902,321 3,273,819 State Bank Corp. and its wholly-owned subsidiary, State Bank of Arizona February 29, 2020 745,420 451,702 603,289 On January 13, 2025, the Company announced the signing of a definitive agreement to acquire Bank of Idaho Holding Co., the parent company of Bank of Idaho.
(collectively, “Guaranty” or “GNTY”) October 1, 2025 $ 3,356,636 $ 2,102,378 $ 2,706,740 Bank of Idaho Holding Co. and its wholly-owned subsidiary, Bank of Idaho (collectively, “BOID”) April 30, 2025 1,364,085 1,075,232 1,078,377 Rocky Mountain Bank branches (“RMB”) July 19, 2024 403,052 271,569 396,690 Community Financial Group, Inc. and its wholly-owned subsidiary, Wheatland Bank (collectively, “Wheatland”) January 31, 2024 777,705 452,740 616,955 Altabancorp and its wholly-owned subsidiary, Altabank (collectively, "Alta") October 1, 2021 4,131,662 1,902,321 3,273,819 For additional information on recently completed acquisition and subsequent event, see Note 23 to the Consolidated Financial Statements in “Item 8.
Capital Adequacy Banks and bank holding companies are subject to various regulatory capital requirements administered by state and federal regulatory agencies, which involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory guidelines. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting, and other factors.
Any future changes to this cap could affect the Bank’s fee revenue and non-interest income. Capital Adequacy We are subject to various regulatory capital requirements. These requirements measure assets, liabilities, and certain off-balance sheet items against regulatory guidelines. Capital amounts and classifications are subject to qualitative judgments by regulators about components and risk weighting, among other factors.
The inspection type and frequency typically varies depending on asset size, complexity of the organization, and the bank holding company’s rating at its last inspection. Examinations. Banks are subject to periodic examinations by their primary regulators. In assessing a bank's condition, bank examinations have evolved from reliance on transaction testing to a risk-focused approach.
The type and frequency of an inspection may vary depending on a bank holding company’s asset size, complexity, and rating at its last inspection. Examinations. A bank is subject to periodic examination by its primary federal and state regulators, such as the FDIC and the MT Division of Banking.
The tourism industry is highly influenced by national parks, ski resorts, significant lakes and rural scenic areas. Commercial banking is a highly competitive business and operates in a rapidly changing environment. There are a large number of depository institutions including commercial banks, savings and loans, and credit unions in the markets in which we have locations.
The market area’s diversified economic base primarily focuses on tourism, construction, mining, energy, manufacturing, agriculture, service industries, and health care. The tourism industry is highly influenced by national parks, ski resorts, significant lakes and rural scenic areas. Commercial banking is a highly competitive business and operates in a rapidly changing environment.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeCertain jurisdictions in which we operate are considering or have proposed or enacted legislation and policies regulating AI and non-personal data, such as the recent Executive Order on AI. Such regulations may result in operational costs to modify, maintain, or align our business practices, or constrain our ability to develop, deploy, or maintain these technologies.
Biggest changeSuch AI regulations may result in operational costs to modify, maintain, or align our business practices with the rapidly evolving, potentially unclear, or conflicting regulatory regimes, or constrain our ability to develop, deploy, or maintain these technologies. 16 We have various anti-takeover measures that could impede a takeover.
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.
Further decreases in the value of these assets, 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.
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 lower cost.
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.
In addition to cyber attacks 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.
In addition to cyberattacks 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.
Our future performance will depend on our ability to respond timely to technological change. The financial services industry continues to experience rapid technological changes with frequent introductions of new technology-driven products and services by both other regulated entities and by companies that are not subject to the extensive regulations applicable to banks.
Our future performance will depend on our ability to respond timely to technological change. The financial services industry continues to experience rapid technological changes with frequent introductions of new technology-driven products and services by both other regulated entities and by companies that are not subject to the extensive regulations 15 applicable to banks.
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.
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 13 may be necessary beyond the levels commensurate with any loan growth.
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. The Bank is subject to environmental liability risk associated with our lending activities.
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. 14 The Bank is subject to environmental liability risk associated with our lending activities.
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.
Our models and strategies 18 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.
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 upon their judgments, which may be different from the Bank’s judgments.
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 on their judgments, which may be different from the Bank’s judgments.
The Bank seeks to manage its interest rate risk within 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 Bank seeks to manage its interest rate risk with 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.
In fact, the 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.
The FDIC has issued 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.
Any future deterioration in economic conditions in the markets the Company serves 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: • Loan delinquencies may increase; • Problem assets and foreclosures may increase; • Collateral for loans made may decline in value, in turn reducing customers’ borrowing power and the Bank’s security; • Certain securities within the investment portfolio could become other-than-temporarily impaired, requiring a write-down through earnings to fair value, thereby reducing equity; • Low cost or non-interest bearing deposits may decrease; and • Demand for loan and other products and services may decrease.
Any future deterioration in economic conditions in the markets we serve 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: • Loan delinquencies may increase; • Problem assets and foreclosures may increase; • Collateral for loans made may decline in value, in turn reducing customers’ borrowing power and the Bank’s security; • Certain securities within the investment portfolio could become other-than-temporarily impaired, requiring a write-down through earnings to fair value, thereby reducing equity; • Low cost or non-interest bearing deposits may decrease; and • Demand for loan and other products and services may decrease.
If market and regulatory conditions 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.
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.
Regardless of the steps we take to ensure 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.
Regardless of the steps we take to maintain 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.
Because the Bank’s loan portfolio contain 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.
Because the Bank’s loan portfolio contains 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.
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 adjust the ACL accordingly.
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 adjusts the ACL accordingly.
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, and being unable to profitably deploy funds acquired in an acquisition.
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, and being unable to profitably deploy funds acquired in an acquisition.
Our goodwill was not considered impaired as of December 31, 2024 and 2023; however, there can be no assurance that future evaluations of goodwill will not result in findings of impairment and write-downs, which could be material.
Our goodwill was not considered impaired as of December 31, 2025, and 2024; however, there can be no assurance that future evaluations of goodwill will not result in findings of impairment and write-downs, which could be material.
See “Item 1C. Cybersecurity” for additional information regarding our efforts to detect, identify, assess, manage, and respond to risks from cybersecurity threats. 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 intelligence space.
See “Item 1C. Cybersecurity” for additional information regarding our efforts to detect, identify, assess, manage, and respond to risks from cybersecurity threats. 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 AI space.
We face competition from technologies used to support and enable banking and financial services.
We face competition from emerging technologies used to support and enable banking and financial services.
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, could disrupt business, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, increase costs and cause losses.
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 cyberattacks, could disrupt business, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, increase costs and cause losses.
If goodwill recorded in connection with acquisitions becomes impaired, it could have an adverse impact on earnings and capital. Accounting standards require us to account for acquisitions using the acquisition method of accounting.
If goodwill recorded in connection with acquisitions becomes impaired, related accounting charges could have an adverse impact on earnings and capital. Accounting standards require us to account for acquisitions using the acquisition method of accounting.
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”) and other similar events.
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 AI, and other similar events.
We may not be able to continue paying quarterly dividends commensurate with recent levels given that our ability to pay dividends on our common stock depends on a variety of factors.
There can be no assurance we will be able to continue paying dividends on our common stock at recent levels. We may not be able to continue paying quarterly dividends commensurate with recent levels given that our ability to pay dividends on our common stock depends on a variety of factors.
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’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.
The Bank attempts to take these risks into account in making lending and other decisions, but the Bank’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.
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 increases the likelihood that the Bank will suffer losses on defaulted loans secured by real estate beyond the amounts provided for in the ACL.
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, increasing the likelihood of losses on defaulted loans beyond the amounts provided for in the ACL.
While we believe that the terms of our debt securities have been kept relatively short, we are subject to elevated interest rate risk exposure in the current elevated rate environment as compared to recent years. Further, debt securities present a different type of asset quality risk than the loan portfolio.
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 remain subject to interest rate risk exposure in the current rate environment. Further, debt securities present a different type of asset quality risk than the loan portfolio.
Substantially all of the Bank’s loans are to businesses and individuals in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona and Nevada, and adverse economic conditions in these market areas could have a material adverse effect on our business, 13 financial condition, results of operations and prospects. Deterioration in the national economy may also have an adverse effect in these markets.
Substantially all of the Bank’s loans are to businesses and individuals in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, Nevada, and 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.
We have various anti-takeover measures that could impede a takeover. Our articles of incorporation include certain provisions that could make it more difficult to acquire us by means of a tender offer, a proxy contest, merger or otherwise.
Our articles of incorporation include certain provisions that could make it more difficult to acquire us by means of a tender offer, a proxy contest, merger or otherwise.
The regulatory landscape surrounding AI technologies is evolving, and the ways in which these technologies will be regulated by governmental authorities, self-regulatory institutions, or other regulatory authorities remains uncertain and may be inconsistent from jurisdiction to jurisdiction.
The regulatory landscape surrounding AI technologies is also evolving, and the ways in which these technologies will be regulated by federal, state, and local governments, self-regulatory bodies, or other regulatory authorities remains uncertain and may be inconsistent from jurisdiction to jurisdiction.
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.
Interest Rates, Operations and Risk Management Fluctuating interest rates can adversely affect profitability and shareholders’ equity. 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.
Our business is subject to the risks of earthquakes, floods, fires, and other catastrophic events. With Bank branches and customers located in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona and Nevada, our business could be affected by natural catastrophes such as droughts, fires, earthquakes, or other natural disasters that affect these regions.
With Bank branches and customers located in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, Nevada, and Texas, our business could be affected by natural catastrophes such as a droughts, fires, earthquakes, or other natural disasters that affect these regions.
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.
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.
In addition, we could face reductions in creditworthiness on the part of some customers or in the value of assets securing loans.
In addition, we could face reductions in creditworthiness on the part of some customers or in the value of assets securing loans that are affected by the effects of climate change.
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.
We could suffer operational, reputational and financial harm if we fail to properly anticipate and manage risk. 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.
The Bank has a high degree of concentration in loans secured by real estate. Any future deterioration in the real estate markets could adversely impact borrowers’ ability to repay loans secured by real estate and the value of our real estate collateral, thereby increasing the credit risk associated with the loan portfolio.
Any future deterioration in markets for commercial real estate in 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.
State laws in the United States on privacy, data and related technologies, as well as industry self-regulatory codes and regulatory requirements, create additional privacy and security compliance obligations and expand the scope of potential liability.
This scrutiny can result in new and shifting interpretations of existing laws, thereby further impacting our business. State laws in the United States on privacy, data and related technologies, as well as industry self-regulatory codes and regulatory requirements, create additional privacy and security compliance obligations and expand the scope of potential liability.
An increase in the level of non-performing assets also increases the Bank’s risk profile and may impact the capital levels its regulators believe are appropriate in light of such risks.
An increase in the level of non-performing assets also increases the Bank’s risk profile and may impact the capital levels required by regulators.
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, 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. 15 The Bank has a high concentration of loans secured by real estate, so a deterioration in the real estate markets could require material increases in the ACL and adversely affect our business, financial condition, and results of operations.
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 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.
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 companies in providing 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.
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 companies.
In addition, the use of AI by bad actors presents increasingly complex and sophisticated security threats to our confidential customer, employee, and Company data, and we must make additional efforts to maintain network security.
In addition, the use of AI by bad actors presents increasingly complex and sophisticated security threats to our data and the confidential data of our customers and employees. These potential security threats require additional efforts and investments to maintain network security and the security of the data we possess.
The safe and responsible integration of AI functionality 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.
The safe and responsible integration of AI technology 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.
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. There are risks associated with any such acquisitions that could adversely affect profitability and other performance measures.
Growth through future acquisitions could, in some circumstances, adversely affect profitability or other performance measures. 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 or branches.
For information regarding the impact of recently issued accounting standards, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Climate change may materially adversely affect the Company's business, financial condition, and results of operations. Concerns over the long-term effects of climate change have led to governmental efforts around the world to mitigate those impacts.
For information regarding the impact of recently issued accounting standards, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Climate impacts may materially adversely affect the Company's business, financial condition, and results of operations.
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.
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.
Increased competition may negatively affect our earnings by creating pressure to lower prices or credit standards on our products and services requiring additional investment to improve the quality and delivery of our technology and/or reducing our market share, or affecting the willingness of our clients to do business with us. 16 Interest Rates, Operations and Risk Management Fluctuating interest rates can adversely affect profitability and shareholders’ equity.
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 services, requiring additional investment to improve the quality and delivery of our technology, and/or reducing our market share, or affecting the willingness of our clients to do business with us.
Furthermore, a prolonged period of inflation 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.
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.
Consumers and businesses also may voluntarily change their behavior as a result of these concerns. Both the Bank and its customers will need to respond to new laws and regulations as well as consumer and business preferences resulting from climate change concerns. The Bank and its customers may face cost increases, asset value reductions and operating process changes.
Consumers and businesses also may voluntarily change their behavior as a result of concerns regarding climate change or related legislation. Both the Bank and its customers will need to respond to changing policies, laws, and regulations as well as consumer and business preferences regarding climate-related concerns.
Downturns in the stock market and the market price of our stock, changes in our capital position, heightened regulatory scrutiny, and changes in our regulatory standing could each have a negative impact on our ability to complete future acquisitions. Growth through future acquisitions could, in some circumstances, adversely affect profitability or other performance measures.
Downturns in the stock market and the market price of our stock, changes in our capital position, a return to a regulatory environment with 12 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.
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 rates could negatively impact deposit growth and mix, the value of our investments, shareholders’ equity, and the Bank’s profitability.
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.
We are subject to national data protection, privacy and security laws, regulations and codes of conduct that relate to our various business units and data processing activities, which may include sensitive, confidential, and personal information. These laws, regulations and codes may be inconsistent across jurisdictions and are subject to evolving and differing (sometimes conflicting) interpretations.
Increasing regulatory focus on privacy and security issues and expanding laws and regulatory requirements could impact our business models and expose us to increased liability. We are subject to national data protection, privacy and security laws, regulations and codes of conduct that relate to our various business units and data processing activities, which may include sensitive, confidential, and personal information.
Government officials and regulators, privacy advocates and class action attorneys are increasingly scrutinizing how companies collect, process, use, store, share and transmit personal data, including the transferring of personal information across international borders. This scrutiny can result in new and shifting interpretations of existing laws, thereby further impacting our business.
These laws, regulations and codes may be inconsistent across jurisdictions and are subject to evolving and differing (sometimes conflicting) interpretations. Government officials and regulators, privacy advocates and class action attorneys are increasingly scrutinizing how companies collect, process, use, store, share and transmit personal data, including the transferring of personal information across international borders.
Since we have $1.051 billion in goodwill, representing 33 percent of our shareholders' equity, impairment of goodwill could have a material adverse effect on our business, financial condition and results of operations.
Since we have $1.4 billion in goodwill, representing 33 percent of our shareholders’ equity, impairment of goodwill could have a material adverse effect on our business, financial condition and results of operations. Furthermore, even though it is a non-cash item, significant impairment of goodwill could subject us to regulatory limitations, including limits applicable to dividends on our common stock.
Interest rates do not necessarily move in the same direction or by the same magnitude as the prices of goods and services.
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.
Failure to comply with these regulations could result in fines or sanctions and limit our ability to get regulatory approval of acquisitions. While we have developed policies and procedures designed to assist in compliance with these laws and regulations, no assurance can be given that these policies and procedures will be effective in preventing violations of these laws and regulations.
While we have developed policies and procedures designed to assist in compliance with these laws and regulations, no assurance can be given that these policies and procedures will be effective in preventing violations of these laws and regulations. Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for us.
Such parties could also be the source of an attack on, or breach of, the Bank’s operational systems. 17 Any failures, interruptions or security breaches in our information systems could damage our reputation, result in a loss of customer business, result in a violation of privacy or other laws, or expose us to civil litigation, regulatory fines or losses not covered by insurance.
Any failures, interruptions or security breaches in our operational or security systems, or those of our third-party service providers, including as a result of cyberattacks, could disrupt 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, and increase costs.
In addition to the carrying costs to maintain OREO, the resolution of non-performing assets increases the Bank’s loan administration costs generally, and requires significant commitments of time from management and our directors, which reduces the time they have to focus on profitably growing our business.
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 and is time-consuming, reducing the time management has 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.
The impact on our customers will likely vary depending on their specific attributes, including reliance on or role in carbon-intensive activities. Among the impacts to the Bank could be a drop in demand for our products and services, particularly in certain sectors.
Among the impacts on the Bank could be a drop in demand for our products and services, particularly in certain sectors, depending on the Bank’s response to climate change legislation and regulations.
There are uncertainties around the legal and regulatory approach that will be taken under the Executive branch Administration, and we cannot predict the likelihood, nature or extent of changes in law or government regulations that may arise from future legislation or administrative or executive action, either in the United States or abroad. 19 Our business is heavily dependent on the services of members of the senior management team.
We cannot predict the likelihood, nature or extent of changes in law, government regulations, or operations 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 may not be able to continue to grow internally or through acquisitions. Historically, we have expanded through a combination of internal growth and selective acquisitions.
If the Bank is unable to effectively compete in its market areas or effectively adjust to the changing competitive landscape, the Bank’s business, financial condition, results of operations, and prospects could be adversely affected. We may not be able to continue to grow internally or through acquisitions. Historically, we have expanded through a combination of internal growth and selective acquisitions.
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. If the Bank is unable to effectively compete in its market areas, the Bank’s business, financial condition, results of operations, and prospects could be adversely affected.
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.
We believe our success to date has been substantially dependent on our executive management team. In addition, our unique model relies upon 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.
In addition, our unique model relies on the Presidents of our separate Bank divisions, particularly in light of our decentralized management structure in which Bank divisions have significant local decision-making authority. The unexpected loss of any of these individuals could have an adverse effect on our business, financial condition, results of operations, and future growth prospects.
The Federal Reserve decreased the federal funds target rate three times in 2024, with the most recent decrease occurring in December 2024.
The Federal Reserve decreased the federal funds target rate three times in 2025, with the most recent decrease occurring in December 2025. The Federal Reserve has communicated that the economic outlook continues to be uncertain, and any future adjustments to the federal funds rate will depend on incoming data.
Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for us. Any of these results could have a material adverse effect on our business, financial condition, results of operations and growth prospects.
Any of these results could have a material adverse effect on our business, financial condition, results of operations and growth prospects. Legislative, administrative, and judicial changes to tax laws, regulations, and case law may adversely impact our business and financial performance.
Removed
Furthermore, even though it is a non-cash item, significant impairment of goodwill could subject us to regulatory limitations, including limits applicable to dividends on our common stock. 14 There can be no assurance we will be able to continue paying dividends on our common stock at recent levels.
Added
In 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.
Removed
The Federal Reserve has communicated that the economic outlook continues to be uncertain, and while it has stated that rates may continue to decrease in 2025, there can be no assurance of the timing or amount of any future rate adjustments.
Added
There are risks associated with any such acquisitions that could adversely affect profitability and other performance measures.
Removed
The terms and costs of these activities, or the failure of these actions to help stabilize the financial markets, asset prices, market liquidity and a continuation or worsening of current financial market and economic conditions could materially and adversely affect our business, financial condition, results of operations, and the trading price of our common stock. 18 Increasing regulatory focus on privacy and security issues and expanding laws and regulatory requirements could impact our business models and expose us to increased liability.
Added
The Bank has a high concentration of loans secured by real estate, so a deterioration in the real estate markets could require material increases in the ACL and adversely affect our business, financial condition, and results of operations. A significant percent of the Bank’s loans are secured by real estate, resulting in a high concentration of real estate secured loans.
Removed
National and global economies are constantly in flux, as evidenced by recent market volatility resulting from, among other things, the bank failures involving Silicon Valley Bank and Signature Bank in 2023, the effects of inflation, and the ever-changing landscape of the energy and medical industries.
Added
These competitors 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.
Removed
The unexpected loss of any of these persons could have an adverse effect on our business, financial condition, results of operations, and future growth prospects. We could suffer operational, reputational and financial harm if we fail to properly anticipate and manage risk.
Added
Competition 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.
Added
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).
Added
Elevated interest rates, or interest rate volatility, could negatively impact deposit growth and mix, the value of our investments, shareholders’ equity, and the Bank’s profitability. Our business is subject to the risks of earthquakes, floods, fires, and other catastrophic events.
Added
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.
Added
As with many innovations, AI presents risks and challenges that could significantly disrupt our business 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.
Added
Some states within our market areas have enacted or proposed legislation and policies regulating AI with a focus on 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.
Added
Failure to comply with these regulations could result in fines or sanctions and limit our ability to get 17 regulatory approval of acquisitions.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

8 edited+1 added−0 removed7 unchanged
Biggest changeThese third-party consultants conduct periodic comprehensive vulnerability and penetration testing, alongside audits of high-risk technology systems designed to evaluate the efficacy of the Company’s cybersecurity measures. The Company has also retained a third-party cybersecurity firm to assist with the Company’s response to any future cybersecurity breaches.
Biggest changeIn addition to the internal programs outlined above, the Company engages with external cybersecurity experts to conduct thorough evaluations of the Company’s cybersecurity processes and controls. These third-party consultants conduct periodic comprehensive vulnerability and penetration testing, alongside audits of high-risk technology systems designed to evaluate the efficacy of the Company’s cybersecurity measures.
These management and staff members also participate in structured ongoing training to keep current with industry trends and cybersecurity threats. The CISO has a degree in Business Administration, Finance, and Risk Management from Washington State University. The CISO has over 24 years of experience in cybersecurity and information security.
These management and staff members also participate in structured ongoing training to keep current with industry trends and cybersecurity threats. The CISO has a degree in Business Administration, Finance, and Risk Management from Washington State University. The CISO has over 25 years of experience in cybersecurity and information security.
The Company is not aware of any current cybersecurity threats that are reasonably likely to materially affect the Company’s business strategy, results of operations or financial condition. See “Item 1A. Risk Factors” for additional information regarding the risks we face from cybersecurity threats. 21
The Company is not aware of any current cybersecurity threats that are reasonably likely to materially affect the Company’s business strategy, results of operations or financial condition. See “Item 1A. Risk Factors” for additional information regarding the risks we face from cybersecurity threats. 20
The Board is also regularly furnished with key risk indicators and defined risk parameters with respect to the Company’s cybersecurity program. The Board reviews and approves the Company’s cybersecurity policies at least annually. Management's role in assessing and managing material risks from cybersecurity threats is an important and multifaceted component of the Company’s cybersecurity.
The Board is also regularly furnished with key risk indicators and defined risk parameters with respect to the Company’s cybersecurity program. The Board reviews and approves the Company’s cybersecurity policies at least biennially. Management's role in assessing and managing material risks from cybersecurity threats is an important and multifaceted component of the Company’s cybersecurity.
In order to identify material risks from cybersecurity threats associated with the use of third-party service providers, such as bank operations technology, payroll and benefits administrators, and professional service providers, the Company has established a dedicated department within its Enterprise Risk Management division.
In order to identify material risks from cybersecurity threats associated with the use of third-party service providers, such as bank operations technology, payroll and benefits administrators, and professional service providers, the Company has established a 19 dedicated department within Enterprise Risk Management.
The CIO has dual degrees in Accounting and Computer Science from the University of Montana. The CIO has over 31 years of experience managing information technology at the Company.
The CIO has dual degrees in Accounting and Computer Science from the University of Montana. The CIO has over 32 years of experience managing information technology at the Company.
The CISO has maintained a Certified Information Systems Security Professional (CISSP) certification for over 19 years. The CRO has a degree in Business Administration and Finance from the University of Montana. The CRO has over 24 years of combined experience with financial institution risk management, including prior experience as a bank regulator and a credit risk management consultant.
The CISO has maintained a Certified Information Systems Security Professional (CISSP) certification for over 20 years. The CRO has a degree in Business Administration and Finance from the University of Montana. The CRO has over 25 years of combined experience with financial institution risk management, including prior experience as a bank regulator and a credit risk management consultant.
The Company’s processes for identifying, assessing, and managing cybersecurity risks include: • a rigorous internal audit process to evaluate the Company’s cybersecurity strategies, with the Audit Committee apprised of risks or control failures that are identified during the audit; • participation in multiple peer-sharing networks to obtain industry-wide intelligence regarding specific cybersecurity threats and industry best practices to minimize cybersecurity risks; • participation in simulated cyber-event tabletop exercises designed to test the Company’s incident response capabilities and the robustness of its cybersecurity program; • an information security program that is regularly reviewed, tested, and updated, and includes vulnerability and patch management programs, incident response planning, security monitoring, employee training, and security awareness testing; • cybersecurity insurance to mitigate the financial impact of a cybersecurity incident on the Company’s business and financial condition; and • periodic regulatory examinations that include an assessment of the Company’s cybersecurity management, processes, and controls. 20 In addition to the internal programs outlined above, the Company engages with external cybersecurity experts to conduct thorough evaluations of the Company’s cybersecurity processes and controls.
The Company’s processes for identifying, assessing, and managing cybersecurity risks include: • a rigorous internal audit process to evaluate the Company’s cybersecurity strategies, with the Audit Committee apprised of risks or control failures that are identified during the audit; • participation in multiple peer-sharing networks to obtain industry-wide intelligence regarding specific cybersecurity threats and industry best practices to minimize cybersecurity risks; • participation in simulated cyber-event tabletop exercises designed to test the Company’s incident response capabilities and the robustness of its cybersecurity program; • an information security program that is regularly reviewed, tested, and updated, and includes vulnerability and patch management programs, incident response planning, security monitoring, employee training, and security awareness testing; • cybersecurity insurance to mitigate the financial impact of a cybersecurity incident on the Company’s business and financial condition; and • periodic regulatory examinations that include an assessment of the Company’s cybersecurity management, processes, and controls.
Added
The Company has also retained a third-party cybersecurity firm to assist with the Company’s response to any future cybersecurity breaches.

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed0 unchanged
Biggest changeProperties The following schedule provides information on the Company’s 227 properties as of December 31, 2024: (Dollars in thousands) Properties Leased Properties Owned Net Book Value Montana 7 61 $ 158,896 Utah 5 33 65,746 Idaho 7 23 48,076 Colorado 6 17 24,744 Wyoming 3 16 22,174 Arizona 8 9 16,014 Nevada 1 6 10,227 Washington 2 23 35,416 Total 39 188 $ 381,293 We believe that all of our facilities are well maintained, generally adequate and suitable for the current operations of our business.
Biggest changeProperties The following schedule provides information on the Company’s 281 properties as of December 31, 2025: (Dollars in thousands) Properties Leased Properties Owned Net Book Value Montana 6 64 $ 155,091 Utah 6 33 67,906 Idaho 12 27 57,870 Colorado 6 17 24,297 Wyoming 3 17 21,604 Arizona 8 9 16,276 Nevada 1 6 10,048 Texas 14 23 54,973 Washington 4 25 39,124 Total 60 221 $ 447,189 We believe that all of our facilities are well maintained, generally adequate and suitable for the current operations of our business.
In the normal course of business, new locations and facility upgrades occur as needed. For additional information regarding the Company’s premises and equipment and lease obligations, see Note 4 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”
In the normal course of business, new locations and facility upgrades occur as needed. For additional information regarding the Company’s premises and equipment and lease obligations, see Note 4 and Note 5 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.”

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+0 added−0 removed1 unchanged
Biggest changePeriod Ending 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Glacier Bancorp, Inc. 100.00 103.83 131.29 117.63 102.32 128.28 Russell 2000 Index 100.00 119.96 137.74 109.59 128.14 142.93 KBW Regional Banking Index 100.00 91.29 124.74 116.10 115.64 130.90
Biggest changePeriod Ending 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 Glacier Bancorp, Inc. 100.00 126.45 113.29 98.55 123.55 111.70 Russell 2000 Index 100.00 114.82 91.35 106.82 119.14 134.40 KBW Regional Banking Index 100.00 136.64 127.17 126.67 143.39 152.71
In 2024, the Company declared total regular dividends in cash of $1.32 per share. Future cash dividends will depend on a variety of factors, including earnings, capital, asset quality, general economic conditions and regulatory considerations. Information regarding the regulatory considerations is set forth under the heading “Supervision and Regulation” in “Item 1.
In 2025, the Company declared total regular dividends in cash of $1.32 per share. Future cash dividends will depend on a variety of factors, including earnings, capital, asset quality, general economic conditions and regulatory considerations. Information regarding the regulatory considerations is set forth under the heading “Supervision and Regulation” in “Item 1.
Total return includes appreciation in market value of the stock as well as the actual cash and stock dividends paid to stockholders. The graph assumes that the value of the each investment was $100 on December 31, 2019 and that all dividends were reinvested.
Total return includes appreciation in market value of the stock as well as the actual cash and stock dividends paid to stockholders. The graph assumes that the value of the each investment was $100 on December 31, 2020 and that all dividends were reinvested.
Business.” Issuer Stock Purchases The Company made no stock repurchases during 2024.
Business.” Issuer Stock Purchases The Company made no stock repurchases during 2025.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company’s common stock trades on the NYSE under the symbol GBCI. As of December 31, 2024, there were approximately 1,968 stockholders of record of the Company’s common stock. The closing price per share on December 31, 2024, was $50.22.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company’s common stock trades on the NYSE under the symbol GBCI. As of December 31, 2025, there were approximately 2,400 stockholders of record of the Company’s common stock. The closing price per share on December 31, 2025, was $44.05.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

110 edited+17 added−21 removed115 unchanged
Biggest changeThe following table summarizes the Company’s loan portfolio by regulatory classification: (Dollars in thousands) December 31, 2024 December 31, 2023 $ Change % Change Custom and owner occupied construction $ 242,844 $ 290,572 $ (47,728) (16 %) Pre-sold and spec construction 191,926 236,596 (44,670) (19 %) Total residential construction 434,770 527,168 (92,398) (18 %) Land development 197,369 232,966 (35,597) (15 %) Consumer land or lots 187,024 187,545 (521) — % Unimproved land 113,532 87,739 25,793 29 % Developed lots for operative builders 61,661 56,142 5,519 10 % Commercial lots 99,243 87,185 12,058 14 % Other construction 693,461 900,547 (207,086) (23 %) Total land, lot, and other construction 1,352,290 1,552,124 (199,834) (13 %) Owner occupied 3,197,138 3,035,768 161,370 5 % Non-owner occupied 4,053,996 3,742,916 311,080 8 % Total commercial real estate 7,251,134 6,778,684 472,450 7 % Commercial and industrial 1,395,997 1,363,479 32,518 2 % Agriculture 1,024,520 772,458 252,062 33 % 1st lien 2,481,918 2,127,989 353,929 17 % Junior lien 76,303 47,230 29,073 62 % Total 1-4 family 2,558,221 2,175,219 383,002 18 % Multifamily residential 895,242 796,538 98,704 12 % Home equity lines of credit 1,005,783 979,891 25,892 3 % Other consumer 209,457 229,154 (19,697) (9 %) Total consumer 1,215,240 1,209,045 6,195 1 % States and political subdivisions 983,601 834,947 148,654 18 % Other 183,894 204,111 (20,217) (10 %) Total loans receivable, including loans held for sale 17,294,909 16,213,773 1,081,136 7 % Less loans held for sale 1 (33,060) (15,691) (17,369) 111 % Total loans receivable $ 17,261,849 $ 16,198,082 $ 1,063,767 7 % ______________________________ 1 Loans held for sale are primarily 1st lien 1-4 family loans. 45 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, 2024 December 31, 2023 December 31, 2024 December 31, 2024 December 31, 2024 Custom and owner occupied construction $ 198 214 198 — — Pre-sold and spec construction 2,132 763 813 1,319 — Total residential construction 2,330 977 1,011 1,319 — Land development 966 35 966 — — Consumer land or lots 78 96 78 — — Developed lots for operative builders 531 608 — 531 — Commercial lots 47 47 — 47 — Total land, lot and other construction 1,622 786 1,044 578 — Owner occupied 2,979 1,838 1,545 1,002 432 Non-owner occupied 2,235 11,016 1,582 — 653 Total commercial real estate 5,214 12,854 3,127 1,002 1,085 Commercial and industrial 2,069 1,971 1,420 641 8 Agriculture 2,335 2,558 2,122 213 — 1st lien 9,053 2,664 7,457 1,596 — Junior lien 315 180 303 12 — Total 1-4 family 9,368 2,844 7,760 1,608 — Multifamily residential 389 395 389 — — Home equity lines of credit 3,465 2,043 2,826 639 — Other consumer 955 1,187 746 138 71 Total consumer 4,420 3,230 3,572 777 71 Other 39 16 — 39 — Total $ 27,786 25,631 20,445 6,177 1,164 46 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, 2024 December 31, 2023 $ Change % Change Custom and owner occupied construction $ 969 $ 2,549 $ (1,580) (62 %) Pre-sold and spec construction 564 1,219 (655) (54 %) Total residential construction 1,533 3,768 (2,235) (59 %) Land development 1,450 163 1,287 790 % Consumer land or lots 402 624 (222) (36 %) Unimproved land 36 — 36 n/m Developed lots for operative builders 214 — 214 n/m Commercial lots — 2,159 (2,159) (100 %) Total land, lot and other construction 2,102 2,946 (844) (29 %) Owner occupied 2,867 2,222 645 29 % Non-owner occupied 5,037 14,471 (9,434) (65 %) Total commercial real estate 7,904 16,693 (8,789) (53 %) Commercial and industrial 6,194 12,905 (6,711) (52 %) Agriculture 744 594 150 25 % 1st lien 6,326 3,768 2,558 68 % Junior lien 214 1 213 21,300 % Total 1-4 family 6,540 3,769 2,771 74 % Home equity lines of credit 3,731 4,518 (787) (17 %) Other consumer 1,775 3,264 (1,489) (46 %) Total consumer 5,506 7,782 (2,276) (29 %) Other 1,705 1,510 195 13 % Total $ 32,228 $ 49,967 $ (17,739) (36 %) _________________ n/m - not measurable 47 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, 2024 December 31, 2023 December 31, 2024 December 31, 2024 Pre-sold and spec construction $ (4) (15) — 4 Land development 1,095 (135) 1,128 33 Consumer land or lots (22) (19) — 22 Unimproved land 1,338 — 1,338 — Commercial lots 319 — 319 — Other construction — 889 — — Total land, lot and other construction 2,730 735 2,785 55 Owner occupied (73) (59) — 73 Non-owner occupied 2 799 7 5 Total commercial real estate (71) 740 7 78 Commercial and industrial 1,422 364 2,084 662 Agriculture 64 — 68 4 1st lien 32 66 71 39 Junior lien (65) 24 10 75 Total 1-4 family (33) 90 81 114 Multifamily residential — (136) — — Home equity lines of credit 69 (6) 140 71 Other consumer 1,078 1,097 1,494 416 Total consumer 1,147 1,091 1,634 487 Other 8,643 7,447 11,967 3,324 Total $ 13,898 10,316 18,626 4,728 48 Sources of Funds The Company’s deposits have traditionally been the principal source of funds for use in lending and other business purposes.
Biggest changeThe 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.
Subordinated Debentures In addition to funds obtained in the ordinary course of business, the Company formed or acquired financing subsidiaries for the purpose of issuing or holding trust preferred securities that entitle the investor to receive cumulative cash distributions thereon.
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.
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. 43 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 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 increase in interest income was primarily attributable to an increase in interest rates with additional benefit from the increase in the loan portfolio, which more than outpaced the increase in interest expense which was primarily driven by an increase in interest rates.
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.
Financial Statements and Supplementary Data.” 52 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.
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.
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 its 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.
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.
Financial Statements and Supplementary Data.” 50 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.
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 loans are generally long-term in nature and interest on many of these loans is tax-exempt for federal income tax purposes. 38 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 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.
As of December 31, 2024, 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.
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.
These loans are supported by a term take-out commitment that may be subject to certain contingencies. 37 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 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.
For additional information concerning the Company’s borrowings, see Note 9 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.
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.
For a discussion of the year ended December 31, 2023 compared to the year ended December 31, 2022, 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, 2023.
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.
The Company’s ACL of $206 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.
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.
Financial Statements and Supplementary Data.” 44 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.
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.
The geographic dispersion of these market areas helps to mitigate the risk of credit loss. The Company’s model of seventeen Bank divisions with separate management teams is also a significant benefit in mitigating and managing the Company’s credit risk.
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.
Financial Statements and Supplementary Data.” 41 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.
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.
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.
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.
Benefits from Low-Income Housing Tax Credits (“LIHTC”) federal income tax credits were $25.4 million and $19.9 million for the years ended December 31, 2024 and 2023, 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.
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.
The federal income tax credits are claimed over a ten-year credit allowance period. The Company has investments of $11.8 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 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.
As of December 31, 2024, the Company had no construction loans with interest reserves that are currently non-performing or that are designated potential problem loans. 39 Loan Purchases, Sales, and Servicing Fixed rate, long-term mortgage loans are generally sold in the secondary market.
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 following table summarizes the estimated amounts outstanding at December 31, 2024 for uninsured time deposits according to the time remaining to maturity.
The following table summarizes the estimated amounts outstanding at December 31, 2025 for uninsured time deposits according to the time remaining to maturity.
There were no changes to the Company’s assessment or reported amounts during 2024. For information on goodwill, see Notes 1 and 5 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.” Fair Value Measurements Fair value measurement estimates are used for certain recorded and disclosed financial instruments on a recurring and non-recurring basis.
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.
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 $84.2 million and $80.2 million for the years ended December 31, 2024 and 2023, 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.
Non-accrual loans were included in the average volume for the entire period. 3 Includes tax effect of $8.6 million, $8.9 million and $14.5 million on tax-exempt debt securities income for the years ended December 31, 2024, 2023 and 2022, respectively. 4 Includes tax effect of $832 thousand, $859 thousand and $0.9 million on federal income tax credits for the years ended December 31, 2024, 2023 and 2022, respectively. 5 Includes interest income of $31.2 million, $42.2 million and $1,523 thousand on average interest-bearing cash balances of $594.8 million, $791.5 million and $120.3 million for the years ended December 31, 2024, 2023 and 2022, respectively. 6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
Non-accrual loans were included in the average volume for the entire period. 3 Includes 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. 4 Includes 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. 5 Includes 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. 6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
Based on an analysis of its available-for-sale debt securities with unrealized losses as of December 31, 2024, 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.
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 Company provides commercial banking services to individuals, small to medium-sized businesses, community organizations and public entities from 227 locations, including 194 branches, across Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona and Nevada.
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 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 may continue to 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 increased FDIC insurance rates and assessments or increased 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, the potential for significant changes in economic policies in the new administration, and geopolitical instability, including the wars in Ukraine and the Middle East; • 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 pending or future 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 or further consolidation in the financial services industry, resulting in 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 (“CEO”), the senior management team and the Presidents of Glacier Bank (the “Bank”) 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.
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.
For such loans, the accrual of interest and its capitalization into the loan balance will be discontinued. The Company had $388 million and $479 million of loans with remaining interest reserves of $31.3 million and $20.7 million as of December 31, 2024 and 2023, respectively.
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.
State taxes are incurred at the rate of 6.75 percent in Montana, 5.70 percent in Idaho, 4.55 percent in Utah, 4.25 percent in Colorado and 4.90 percent in Arizona. Washington, Wyoming and Nevada do not impose a corporate income tax. The Company is also required to file in states other than the eight states in which it has properties.
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.
The Company assessed the off-balance sheet credit exposures as of December 31, 2024 and determined its ACL of $20.4 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.
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.
The subordinated debentures outstanding as of December 31, 2024 were $133 million, including fair value adjustments from acquisitions. For additional information regarding the subordinated debentures, see Note 10 to the Consolidated Financial Statements in “Item 8.
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.
The Company’s increase in credit loss expense of $13.5 million during the current year was primarily driven by a $9.7 million provision for credit losses associated with the current year acquisitions.
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.
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 2024 was $1.2 million. The fair value of the loan collateral acquired in foreclosure during 2024 was $0.9 million.
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.
If there are any deficiencies noted in the reviews, they are reported to Bank management and prompt corrective action is taken. 40 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, 2024 December 31, 2023 December 31, 2022 Other real estate owned and foreclosed assets $ 1,164 1,503 32 Accruing loans 90 days or more past due 6,177 3,312 1,559 Non-accrual loans 20,445 20,816 31,151 Total non-performing assets $ 27,786 25,631 32,742 Non-performing assets as a percentage of subsidiary assets 0.10 % 0.09 % 0.12 % ACL as a percentage of non-performing loans 774 % 799 % 557 % Accruing loans 30-89 days past due $ 32,228 49,967 20,967 U.S. government guarantees included in non-performing assets $ 748 1,503 2,312 Interest income 1 $ 1,142 1,085 1,450 ______________________________ 1 Amounts 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.
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 ______________________________ 1 Amounts 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.
On average, the balances are small and geographically disbursed across our eight-state footprint. Specifically, our CRE portfolio has an average loan balance of $778 thousand with an average loan-to-value ratio (“LTV”) of 59% as of December 31, 2024.
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.
The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 2024 was 2.77 percent, a 4 basis points increase from the net interest margin of 2.73 percent for the prior year.
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.
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.
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”).
December 31, Compounded Annual Growth Rate (Dollars in thousands, except per share data) 2024 2023 2022 2021 2020 1-Year 5-Year Selected Statements of Financial Condition Information Total assets $ 27,902,987 $ 27,742,629 $ 26,635,375 $ 25,940,645 $ 18,504,206 0.6 % 8.6 % Debt securities 7,540,052 8,288,130 9,022,359 10,370,013 5,527,650 (9.0) % 6.4 % Loans receivable, net 17,055,808 16,005,325 15,064,529 13,259,366 10,964,453 6.6 % 9.2 % Allowance for credit losses (206,041) (192,757) (182,283) (172,665) (158,243) 6.9 % 5.4 % Goodwill and intangibles 1,102,500 1,017,263 1,026,994 1,037,652 569,522 8.4 % 14.1 % Deposits 20,546,994 19,929,167 20,606,555 21,337,249 14,797,529 3.1 % 6.8 % Federal Home Loan Bank advances 1,800,000 — 1,800,000 — — 100.0 % n/m FRB Bank Term Funding — 2,740,000 — — — (100.0) % n/m Securities sold under agreements to repurchase and other borrowed funds 1,860,816 1,568,545 1,023,209 1,064,888 1,037,651 18.6 % 12.4 % Stockholders’ equity 3,223,854 3,020,281 2,843,305 3,177,622 2,307,041 6.7 % 6.9 % Equity per share 28.43 27.24 25.67 28.71 24.18 4.4 % 3.3 % Equity as a percentage of total assets 11.6 % 10.9 % 10.7 % 12.3 % 12.5 % 6.1 % (1.5) % ________________________ n/m - not measurable Years ended December 31, Compounded Annual Growth Rate (Dollars in thousands, except per share data) 2024 2023 2022 2021 2020 1-Year 5-Year Summary Statements of Operations Interest income $ 1,139,850 $ 1,017,655 $ 829,640 $ 681,074 $ 627,064 12.0 % 12.7 % Interest expense 435,218 325,973 41,261 18,558 27,315 33.5 % 74.0 % Net interest income 704,632 691,682 788,379 662,516 599,749 1.9 % 3.3 % Provision for credit losses 28,306 14,795 19,963 23,076 39,765 91.3 % (6.6) % Non-interest income 128,446 118,079 120,732 144,820 172,867 8.8 % (5.8) % Non-interest expense 578,468 527,358 518,868 434,822 404,811 9.7 % 7.4 % Income before income taxes 226,304 267,608 370,280 349,438 328,040 (15.4) % (7.2) % Federal and state income tax expense 36,160 44,681 67,078 64,681 61,640 (19.1) % (10.1) % Net income $ 190,144 $ 222,927 $ 303,202 $ 284,757 $ 266,400 (14.7) % (6.5) % Basic earnings per share $ 1.68 $ 2.01 $ 2.74 $ 2.87 $ 2.81 (16.4) % (9.8) % Diluted earnings per share $ 1.68 $ 2.01 $ 2.74 $ 2.86 $ 2.81 (16.4) % (9.8) % Dividends declared per share $ 1.32 $ 1.32 $ 1.32 $ 1.37 $ 1.33 — % (0.2) % 25 At or for the Years ended December 31, (Dollars in thousands) 2024 2023 2022 2021 2020 Selected Ratios and Other Data Return on average assets 0.68 % 0.81 % 1.15 % 1.33 % 1.62 % Return on average equity 6.02 % 7.64 % 10.43 % 11.08 % 12.15 % Dividend payout ratio 78.57 % 65.67 % 48.18 % 47.74 % 47.33 % Average equity to average asset ratio 11.33 % 10.65 % 11.01 % 11.99 % 13.35 % Total capital (to risk-weighted assets) 14.49 % 14.61 % 14.02 % 14.21 % 14.63 % Tier 1 capital (to risk-weighted assets) 12.69 % 12.85 % 12.34 % 12.49 % 12.42 % Common Equity Tier 1 (to risk-weighted assets) 12.69 % 12.85 % 12.34 % 12.49 % 12.42 % Tier 1 capital (to average assets) 8.93 % 8.71 % 8.79 % 8.64 % 9.12 % Net interest margin on average earning assets (tax-equivalent) 2.77 % 2.73 % 3.27 % 3.42 % 4.09 % Efficiency ratio 1 66.71 % 62.85 % 54.64 % 51.35 % 49.97 % Allowance for credit losses as a percent of loans 1.19 % 1.19 % 1.20 % 1.29 % 1.42 % Allowance for credit losses as a percent of nonperforming loans 774 % 799 % 557 % 255 % 470 % Non-performing assets as a percentage of subsidiary assets 0.10 % 0.09 % 0.12 % 0.26 % 0.19 % Non-performing assets $27,786 25,631 32,742 67,691 35,433 Loans originated $5,151,138 4,449,350 8,039,623 8,551,419 7,934,881 Number of full time equivalent employees 3,441 3,294 3,390 3,436 2,970 Number of locations 227 221 221 224 193 ______________________________ 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. 26 YEAR ENDED DECEMBER 31, 2024 COMPARED TO DECEMBER 31, 2023 Highlights and Overview The Company continued to experience pressure during 2024 from the historic interest rate increases during 2023.
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.
Income tax expense for the years ended December 31, 2024 and 2023 was $36.2 million and $44.7 million, respectively. The Company’s effective income tax rate for the years ended December 31, 2024 and 2023 was 16.0 percent and 16.7 percent, respectively.
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.
Financial Statements and Supplementary Data.” 56 Impact of Recently Issued Accounting Standards Authoritative accounting guidance that impacted the Company that became effective during 2024 or 2023 include amendments to: • FASB ASC Topic 326, Financial Instruments - Credit Losses Troubled Debt Restructurings and Vintage Disclosures • FASB ASC Topic 280, Segment Reporting • FASB ASC Topic 848, Reference Rate Reform • FASB ASC Topic 232, Investments Equity Method and Joint Ventures Authoritative accounting guidance that may possibly have a material impact on the Company that is pending adoption at December 31, 2024 includes amendments to: • FASB ASC Topic 740, Income Taxes 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.” 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.
During 2024 and 2023, the Company extended, renewed or modified 4 loans and 7 loans, respectively, with interest reserves. Such loans had an aggregate outstanding principal balance of $1.5 million and $56.0 million as of December 31, 2024 and 2023, 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.
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, 2024.
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.
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 is required to assess goodwill for impairment on an annual basis, or more frequently if determined necessary.
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.
Stockholders’ equity increased $204 million, or $1.19 per share, which was the combined result of earnings retention, $92.4 million of Company common stock issued for an acquisition and the decrease in the unrealized loss on AFS debt securities in 2024. The Company declared quarterly dividends totaling $1.32 per share during 2024 and 2023.
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.
For additional information on debt securities, see Notes 1 and 2 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.” Equity securities Non-marketable equity securities primarily consist of capital stock issued by the FHLB of Des Moines and are carried at cost less impairment.
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.
The historic increase in interest rates during the prior year was the reason for the increase in interest expense which outpaced the increase in interest income. 55 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.
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 earning asset yield of 4.44 percent for the current year increased 45 basis points over the prior year and the total cost of funding yield of 1.79 percent for the current year increased 44 basis points over the prior year.
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 does not undertake any obligation to publicly correct, revise, or update any forward-looking 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. 24 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 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.
The increase 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. 32 ADDITIONAL MANAGEMENT’S DISCUSSION AND ANALYSIS Investment Activity The Company’s investment securities primarily consist of debt securities classified as either available-for-sale or held-to-maturity.
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”).
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.
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.
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). 53 Years ended December 31, 2024 December 31, 2023 December 31, 2022 (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 $ 1,820,057 $ 89,596 4.92 % $ 1,603,600 $ 71,328 4.45 % $ 1,284,029 $ 57,243 4.46 % Commercial loans 1 13,818,805 772,496 5.59 % 12,982,708 675,549 5.20 % 11,902,971 555,244 4.66 % Consumer and other loans 1,305,716 89,160 6.83 % 1,247,114 74,734 5.99 % 1,131,000 54,393 4.81 % Total loans 2 16,944,578 951,252 5.61 % 15,833,422 821,611 5.19 % 14,318,000 666,880 4.66 % Tax-exempt investment securities 3 1,675,732 59,479 3.55 % 1,740,746 59,716 3.43 % 1,916,731 70,438 3.67 % Taxable investment securities 4,5 7,400,887 145,128 1.96 % 8,297,203 152,003 1.83 % 8,546,792 113,952 1.33 % Total earning assets 26,021,197 1,155,859 4.44 % 25,871,371 1,033,330 3.99 % 24,781,523 851,270 3.44 % Goodwill and intangibles 1,079,404 1,022,052 1,032,263 Non-earning assets 773,322 504,698 603,401 Total assets $ 27,873,923 $ 27,398,121 $ 26,417,187 Liabilities Non-interest bearing deposits $ 6,144,268 $ — — % $ 6,642,339 $ — — % $ 8,005,821 $ — — % NOW and DDA accounts 5,326,296 63,635 1.19 % 5,167,117 37,357 0.72 % 5,387,277 3,439 0.06 % Savings accounts 2,866,908 22,684 0.79 % 2,908,584 9,918 0.34 % 3,270,799 1,191 0.04 % Money market deposit accounts 2,904,461 58,140 2.00 % 3,166,914 42,254 1.33 % 3,926,737 6,401 0.16 % Certificate accounts 3,106,755 128,081 4.12 % 1,949,206 64,176 3.29 % 955,829 3,249 0.34 % Total core deposits 20,348,688 272,540 1.34 % 19,834,160 153,705 0.77 % 21,546,463 14,280 0.07 % Short-term borrowings Wholesale deposits 6 3,615 194 5.36 % 173,231 8,721 5.03 % 11,862 246 2.07 % Repurchase agreements 1,676,040 55,723 3.32 % 1,301,223 36,414 2.80 % 920,955 3,200 0.35 % FHLB advances 1,147,456 56,297 4.83 % 551,986 26,910 4.81 % 584,562 17,317 2.92 % FRB Bank Term Funding 617,377 27,097 4.39 % 2,133,658 93,388 4.38 % — — — % Total short-term borrowings 3,444,488 139,311 3.98 % 4,160,098 165,433 3.92 % 1,517,379 20,763 1.35 % Long-term borrowings FHLB advances 351,038 16,323 4.57 % — — — % — — — % Subordinated debentures and other borrowed funds 219,839 7,044 3.20 % 209,567 6,835 3.26 % 196,139 6,218 3.17 % Total interest bearing liabilities 24,364,053 435,218 1.79 % 24,203,825 325,973 1.35 % 23,259,981 41,261 0.18 % Other liabilities 351,825 275,359 249,832 Total liabilities 24,715,878 24,479,184 23,509,813 Stockholders’ Equity Common stock 1,132 1,109 1,107 Paid-in capital 2,437,641 2,346,575 2,340,952 Retained earnings 1,064,090 1,021,469 897,587 Accumulated other comprehensive loss (344,818) (450,216) (332,272) Total stockholders’ equity 3,158,045 2,918,937 2,907,374 Total liabilities and stockholders’ equity $ 27,873,923 $ 27,398,121 $ 26,417,187 Net interest income (tax-equivalent) $ 720,641 $ 707,357 $ 810,009 Net interest spread (tax-equivalent) 2.65 % 2.64 % 3.26 % Net interest margin (tax-equivalent) 2.77 % 2.73 % 3.70 % 54 Average Balance Sheet - continued ______________________________ 1 Includes tax effect of $6.5 million, $5.9 million and $6.3 million on tax-exempt municipal loan and lease income for the years ended December 31, 2024, 2023 and 2022, respectively. 2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale.
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 ______________________________ 1 Includes 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. 2 Total loans are gross of the ACL, net of unearned income and include loans held for sale.
Total unencumbered debt securities at December 31, 2023, included $441.5 million classified as AFS, and $1.4 billion classified as HTM. 51 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.
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 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. 33 December 31, 2024 December 31, 2023 (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value S&P: AAA / Moody’s: Aaa $ 429,267 379,793 446,206 402,932 S&P: AA+, AA, AA- / Moody’s: Aa1, Aa2, Aa3 1,207,309 1,046,083 1,244,344 1,107,064 S&P: A+, A, A- / Moody’s: A1, A2, A3 48,143 47,345 55,511 55,101 Not rated by either entity 6,868 6,617 5,842 5,486 Total $ 1,691,587 1,479,838 1,751,903 1,570,583 State and local government securities largely consist of both taxable and tax-exempt general obligation and revenue bonds.
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 sets forth the changes in OREO for the periods indicated: Years ended (Dollars in thousands) December 31, 2024 December 31, 2023 Balance at beginning of period $ 1,503 32 Additions 879 1,563 Write-downs (16) (8) Sales (1,203) (84) Balance at end of period $ 1,164 1,503 Allowance for Credit Losses - Loans Receivable The following table summarizes the allocation of the ACL as of the dates indicated: December 31, 2024 December 31, 2023 (Dollars in thousands) ACL Percent of Loans in Category ACL Percent of Loans in Category Residential real estate $ 25,181 11 % $ 22,325 11 % Commercial real estate 138,545 64 % 130,924 64 % Other commercial 24,400 18 % 21,194 18 % Home equity 11,402 5 % 11,766 5 % Other consumer 6,513 2 % 6,548 2 % Total $ 206,041 100 % $ 192,757 100 % 42 The following table summarizes the ACL experience for the periods indicated: At or for the Years ended (Dollars in thousands) December 31, 2024 December 31, 2023 December 31, 2022 Balance at beginning of period $ 192,757 $ 182,283 $ 172,665 Acquisitions 3 — — Provision for credit losses 27,179 20,790 17,433 Net (charge-offs) recoveries Residential real estate (6) (3) 63 Commercial real estate (2,828) (1,640) 684 Other commercial (3,956) (2,256) (2,545) Home equity 5 38 250 Other consumer (7,113) (6,455) (6,267) Net Charge-offs (13,898) (10,316) (7,815) Balance at end of period $ 206,041 $ 192,757 $ 182,283 ACL as a percentage of total loans 1.19 % 1.19 % 1.20 % Non-accrual loans as a percentage of total loans 0.12 % 0.13 % 0.13 % ACL as a percentage of non-accrual loans 1,007.78 % 926.01 % 585.16 % The following table summarizes net (charge-offs) recoveries as a percentage of average loans for the periods indicated: December 31, 2024 December 31, 2023 December 31, 2022 Residential real estate — % — % — % Commercial real estate (0.03) % (0.02) % (0.02) % Other commercial (0.13) % (0.08) % (0.08) % Home equity — % — % — % Other consumer (1.79) % (1.64) % (1.64) % Total net charge-offs (0.08) % (0.07) % (0.07) % The ACL as a percentage of total loans outstanding at December 31 2024 was 1.19 percent which was unchanged from the prior year end.
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.
Interest income of $1.140 billion for 2024 increased $122 million, or 12 percent, from the prior year and was primarily attributable to the increases in the loan yields and the average balance of the loan portfolio. The loan yield was 5.61 percent for 2024, an increase of 42 basis points from the prior year loan yield of 5.19 percent.
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.
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 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 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.
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.
Non-interest expense of $578 million for 2024 increased $51.1 million, or 10 percent, during the current year and was primarily driven by increased operating expenses from the current year acquisitions and an $8.6 million increase in acquisition-related expenses.
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 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 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.
Financial Statements and Supplementary Data.” 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 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 following table identifies certain liquidity sources and capacity available to the Company as of the dates indicated: (Dollars in thousands) December 31, 2024 December 31, 2023 FHLB advances Borrowing capacity $ 4,355,976 4,444,588 Amount utilized (1,800,000) — Letters of credit and other pledged collateral (6,165) (2,327) Amount available $ 2,549,811 4,442,261 FRB discount window Borrowing capacity $ 1,860,932 1,916,312 Amount utilized — — Amount available $ 1,860,932 1,916,312 FRB Bank Term Funding Program Borrowing capacity $ — 2,853,209 Amount utilized — (2,740,000) Amount available $ — 113,209 Unsecured lines of credit available $ 525,000 565,000 Unencumbered debt securities U.S. government and federal agency $ 608,979 473,084 U.S. government sponsored enterprises 301,990 — State and local governments 907,832 998,923 Corporate bonds 14,503 26,253 Residential mortgage-backed securities 615,310 127,328 Commercial mortgage-backed securities 837,169 183,048 Total unencumbered debt securities 1 $ 3,285,783 1,808,636 ____________________________ 1 Total unencumbered debt securities at December 31, 2024, included $1.6 billion classified as AFS and $1.6 billion classified as HTM.
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.
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 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 % Fourth quarter 2023 4,181 3,695 1.19 % 0.31 % 0.09 % Third quarter 2023 5,095 2,209 1.19 % 0.09 % 0.15 % Second quarter 2023 5,254 2,473 1.19 % 0.16 % 0.12 % First quarter 2023 6,260 1,939 1.20 % 0.16 % 0.12 % The provision for credit loss expense was $28.3 million for 2024, an increase of $13.5 million, or 91 percent, over the prior year and was primarily attributable to $9.7 million from the acquisitions of Wheatland and RMB.
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.
(Dollars in thousands) Certificates of Deposit Within three months $ 694,754 Three months to six months 247,273 Seven months to twelve months 123,487 Over twelve months 23,649 Total $ 1,089,163 For additional information on deposits, see Note 8 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data.” 49 Borrowings The Company borrows money through repurchase agreements.
(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.
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”).
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”).
For the periods ended December 31, 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 2024 and 2023, provision for credit losses exceeded the charge-offs, net of recoveries, by $13.3 million and $13.0 million, respectively.
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.
The Company’s deposits are summarized below: December 31, 2024 December 31, 2023 (Dollars in thousands) Amount Percent Amount Percent Non-interest bearing deposits $ 6,136,709 30 % $ 6,022,980 30 % NOW and DDA accounts 5,543,512 27 % 5,321,257 27 % Savings accounts 2,845,124 14 % 2,833,887 14 % Money market deposit accounts 2,878,213 14 % 2,831,624 14 % Certificate accounts 3,139,821 15 % 2,915,393 15 % Wholesale deposits 3,615 — % 4,026 — % Total interest bearing deposits 14,410,285 70 % 13,906,187 70 % Total deposits $ 20,546,994 100 % $ 19,929,167 100 % Total estimated uninsured deposits were $6.544 billion and $6.081 billion at December 31, 2024 and December 31, 2023, respectively.
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.
Compensation and employee benefits expense of $337 million in 2024 increased $27.9 million, or 9 percent, over the prior year and was primarily driven by annual salary increases, increases in performance-related compensation and the acquisitions of Wheatland and RMB.
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.
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.
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.
The Federal Reserve has adopted capital adequacy guidelines that are used to assess the adequacy of capital in supervising a bank holding company.
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.
Non-marketable equity securities primarily consist of capital stock issued by the FHLB of Des Moines. Debt Securities Debt securities classified as available-for-sale are carried at estimated fair value and debt securities classified as held-to-maturity 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.
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.
Year ended December 31, Year ended December 31, 2024 vs. 2023 2023 vs. 2022 Increase (Decrease) Due to: Increase (Decrease) Due to: (Dollars in thousands) Volume Rate Net Volume Rate Net Interest income Residential real estate loans $ 9,628 8,640 18,268 14,247 (162) 14,085 Commercial loans (tax-equivalent) 45,476 51,472 96,948 50,367 69,939 120,306 Consumer and other loans 3,726 10,700 14,426 5,584 14,757 20,341 Investment securities (tax-equivalent) (20,277) 13,165 (7,112) (7,500) 34,828 27,328 Total interest income 38,553 83,977 122,530 62,698 119,362 182,060 Interest expense NOW and DDA accounts 1,256 25,022 26,278 (141) 34,059 33,918 Savings accounts (115) 12,881 12,766 (132) 8,859 8,727 Money market deposit accounts (3,396) 19,282 15,886 (1,238) 37,091 35,853 Certificate accounts 38,392 25,513 63,905 3,376 57,552 60,928 Wholesale deposits (8,538) 11 (8,527) 3,344 5,130 8,474 Repurchase agreements 10,617 8,692 19,309 1,321 31,893 33,214 FHLB advances 46,343 (633) 45,710 (965) 10,558 9,593 FRB Bank Term Funding (66,291) — (66,291) 93,388 — 93,388 Subordinated debentures and other borrowed funds 355 (146) 209 426 191 617 Total interest expense 18,623 90,622 109,245 99,379 185,333 284,712 Net interest income (tax-equivalent) $ 19,930 (6,645) 13,285 (36,681) (65,971) (102,652) Net interest income (tax-equivalent) increased $13.3 million for the year ended December 31, 2024 compared to prior year end.
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 total funding cost (including non-interest bearing deposits) for 2024 was 1.79 percent, which was an increase of 44 basis points over the prior year funding cost of 1.35 percent.
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 Company’s debt securities are summarized below: December 31, 2024 December 31, 2023 (Dollars in thousands) Carrying Amount Percent Carrying Amount Percent Available-for-sale U.S. government and federal agency $ 468,433 6 % $ 455,347 5 % U.S. government sponsored enterprises 310,154 4 % 299,219 4 % State and local governments 68,680 1 % 98,932 1 % Corporate bonds 14,503 1 % 26,253 1 % Residential mortgage-backed securities 2,355,516 31 % 2,811,263 34 % Commercial mortgage-backed securities 1,027,919 14 % 1,094,705 13 % Total available-for-sale 4,245,205 57 % 4,785,719 58 % Held-to-maturity U.S. government and federal agency 859,432 11 % 853,273 10 % State and local governments 1,619,850 21 % 1,650,000 20 % Residential mortgage-backed securities 815,565 11 % 999,138 12 % Total held-to-maturity 3,294,847 43 % 3,502,411 42 % Total debt securities $ 7,540,052 100 % $ 8,288,130 100 % The Company’s debt securities were primarily comprised of U.S. government and federal agency and mortgage-backed securities.
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.
Diluted earnings per share for the year was $1.68, a decrease of 16 percent, from the 2023 diluted earnings per share of $2.01. Net interest income of $705 million for 2024 increased $13.0 million, or 2 percent, over 2023 and was primarily driven by increased interest income which outpaced the increase in 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.
The following table illustrates the Bank’s regulatory capital ratios and the Federal Reserve’s capital adequacy guidelines as of December 31, 2024: 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 13.59 % 12.46 % 12.46 % 8.77 % 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 % On January 1, 2020, the Company adopted the current expected credit losses (“CECL”) accounting standard that requires management’s estimate of credit losses over the expected contractual lives of the Company's relevant financial assets.
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.
December 31, 2024 December 31, 2023 (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value General obligation - unlimited $ 348,129 322,414 383,400 361,728 General obligation - limited 172,537 151,445 183,078 165,993 Revenue 1,135,421 974,076 1,146,341 1,006,088 Certificate of participation 35,443 31,846 36,396 34,144 Other 57 57 2,688 2,630 Total $ 1,691,587 1,479,838 1,751,903 1,570,583 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 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.
Total debt securities of $7.540 billion at December 31, 2024 decreased $748 million, or 9 percent, from the prior year end. Debt securities represented 27 percent of total assets at December 31, 2024 compared to 30 percent at December 31, 2023.
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.
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. 27 Financial Highlights At or for the Years ended (Dollars in thousands, except per share and market data) December 31, 2024 December 31, 2023 Operating results Net income $ 190,144 222,927 Basic earnings per share $ 1.68 2.01 Diluted earnings per share $ 1.68 2.01 Dividends declared per share $ 1.32 1.32 Market value per share Closing $ 50.22 41.32 High $ 60.67 50.03 Low $ 34.35 26.77 Selected ratios and other data Number of common stock shares outstanding 113,401,955 110,888,942 Average outstanding shares - basic 113,170,157 110,864,501 Average outstanding shares - diluted 113,243,427 110,890,447 Return on average assets 0.68 % 0.81 % Return on average equity 6.02 % 7.64 % Efficiency ratio 66.71 % 62.85 % Dividend payout ratio 78.57 % 65.67 % Loan to deposit ratio 84.17 % 81.36 % Number of full time equivalent employees 3,441 3,294 Number of locations 227 221 Number of ATMs 285 275 28 Financial Condition Analysis Assets The following table summarizes the Company’s assets as of the dates indicated: (Dollars in thousands) December 31, 2024 December 31, 2023 $ Change % Change Cash and cash equivalents $ 848,408 $ 1,354,342 $ (505,934) (37 %) Debt securities, available-for-sale 4,245,205 4,785,719 (540,514) (11 %) Debt securities, held-to-maturity 3,294,847 3,502,411 (207,564) (6 %) Total debt securities 7,540,052 8,288,130 (748,078) (9 %) Loans receivable Residential real estate 1,858,929 1,704,544 154,385 9 % Commercial real estate 10,963,713 10,303,306 660,407 6 % Other commercial 3,119,535 2,901,863 217,672 8 % Home equity 930,994 888,013 42,981 5 % Other consumer 388,678 400,356 (11,678) (3 %) Loans receivable 17,261,849 16,198,082 1,063,767 7 % Allowance for credit losses (206,041) (192,757) (13,284) 7 % Loans receivable, net 17,055,808 16,005,325 1,050,483 7 % Other assets 2,458,719 2,094,832 363,887 17 % Total assets $ 27,902,987 $ 27,742,629 $ 160,358 1 % Total cash of $848 million at December 31, 2024 decreased $506 million, or 37 percent, from the prior year end as excess liquidity was used to fund loan growth and pay down certain borrowings.
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.
Based on the Company’s evaluation of its investments in non-marketable equity securities and equity securities without readily determinable fair values as of December 31, 2024, the Company determined that none of such securities were impaired. 35 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.).
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.).
The Company had MBFD loans of $55.0 million and $60.6 million at December 31, 2024 and 2023, respectively. For additional information on MBFDs, see Note 3 to the Consolidated Financial Statement in “Item 8.
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.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+0 added−0 removed16 unchanged
Biggest changeEstimated Sensitivity Rate Scenarios One Year Two Years -400 bp Rate ramp 1.20 % 1.42 % -200 bp Rate ramp 0.92 % (0.31 %) -200 bp Rate shock (0.11 %) (2.99 %) -100 bp Rate shock 0.19 % (0.86 %) +100 bp Rate shock 2.48 % 3.26 % +200 bp Rate shock 1.52 % 3.15 % +200 bp Rate ramp 1.74 % 2.76 % +400 bp Rate shock 1.75 % 0.57 % The preceding sensitivity analysis does not represent a forecast and should not be relied upon as being indicative of expected operating results.
Biggest changeEstimated Sensitivity Rate Scenarios One Year Two Years -400 bp Rate ramp 0.72 % (2.17 %) -200 bp Rate ramp 0.38 % (3.53 %) -200 bp Rate shock (1.43 %) (6.31 %) -100 bp Rate shock (1.17 %) (3.82 %) +100 bp Rate shock 3.21 % (5.32 %) +200 bp Rate shock 3.20 % 7.25 % +200 bp Rate ramp 1.57 % 4.44 % +400 bp Rate ramp 1.47 % 3.63 % The preceding sensitivity analysis does not represent a forecast and should not be relied upon as being indicative of expected operating results.
The ALCO policy rate scenarios include upward and downward shifts in interest rates for 100 bps, 200 bps, 300 bps, and 400 bps scenarios with instantaneous and parallel changes in current market yield curves. The ALCO policy also includes 200 bps and 400 bps rate scenarios with gradual parallel shifts in interest rates over 12-month and 24-month periods, respectively.
The ALCO policy rate scenarios include upward and downward shifts in interest rates for 100 bps, 200 bps and 400 bps scenarios with instantaneous and 56 parallel changes in current market yield curves. The ALCO policy also includes 200 bps and 400 bps rate scenarios with gradual parallel shifts in interest rates over 12-month and 24-month periods, respectively.
Other non-parallel rate movement scenarios are also modeled to determine the potential impact on net interest income. The additional scenarios are adjusted as the economic environment changes and provide ALCO additional interest rate risk monitoring tools to evaluate current market conditions. 57 The following is indicative of the Company’s overall NII sensitivity analysis as of December 31, 2024.
Other non-parallel rate movement scenarios are also modeled to determine the potential impact on net interest income. The additional scenarios are adjusted as the economic environment changes and provide ALCO additional interest rate risk monitoring tools to evaluate current market conditions. The following is indicative of the Company’s overall NII sensitivity analysis as of December 31, 2025.
The Company’s NII sensitivity remained within policy limits at December 31, 2024.
The Company’s NII sensitivity remained within policy limits at December 31, 2025.

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