First Interstate BancSystem : Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

About this update from First Interstate Bancsystem, Inc.

[{"type":"text","content":" \n UNITED STATES \n SECURITIES AND EXCHANGE COMMISSION \n Washington, D.C. 20549 \n ___________________________________________________________________________________________________________________________________________________ \n FORM 10-Q \n _____________________________________________________________________________________________________________________________________________________ \n ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 \n For the quarterly period ended March 31, 2026 \n OR \n ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 \n For the transition period from to \n COMMISSION FILE NUMBER 001-34653 \n ________________________________________________________________________________________________________ \n FIRST INTERSTATE BANCSYSTEM, INC. \n (Exact name of registrant as specified in its charter) \n ________________________________________________________________________________________________________ Delaware \n 81-0331430 \n (State or other jurisdiction of \n incorporation or organization) \n (IRS Employer \n Identification No.) \n 401 North 31st Street \n Billings, \n MT \n 59101 \n (Address of principal executive offices) \n (Zip Code) Registrant's telephone number, including area code: (406) 255-5311 \n N/A \n (Former name, former address and former fiscal year, if changed since last report) \n _________________________________________________________________________________________________ \n Securities registered pursuant to Section 12(b) of the Act: Title of each class \n Trading Symbol(s) \n Name of each exchange on which registered \n Common Stock, $0.00001 par value \n FIBK \n NASDAQ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ \n Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.) Yes ☒ No ☐ \n Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of \"large accelerated filer,\" \"accelerated filer,\" \"smaller reporting company\" and \"emerging growth company\" in Rule 12b-2 of the Exchange Act. Large accelerated filer \n ☒ \n Accelerated filer \n ☐ \n Non-accelerated filer \n ☐ \n Smaller reporting company ☐ Emerging growth company ☐ \n If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ \n Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ \n Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: \n April 30, 2026 - Common stock 97,142,879 Quarterly Report on Form 10-Q FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n Index \n March 31, 2026 \n Page Nos. Part I - Financial Information Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets 3 Consolidated Statements of Income 4 Consolidated Statements of Comprehensive Income 5 Consolidated Statements of Changes in Stockholders' Equity 6 Consolidated Statements of Cash Flows 7 Notes to Unaudited Consolidated Financial Statements 9 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 3. Quantitative and Qualitative Disclosures about Market Risk 53 Item 4. Controls and Procedures 55 Part II - Other Information Item 1. Legal Proceedings 56 Item 1A. Risk Factors 56 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 56 Item 3. Defaults Upon Senior Securities 56 Item 4. Mine Safety Disclosures 56 Item 5. Other Information 56 Item 6. Exhibits 57 Signatures 58 \n 2 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n CONSOLIDATED BALANCE SHEETS \n (In millions, except share data) \n (Unaudited) March 31, \n 2026 \n December 31, \n 2025 \n Assets \n Cash and due from banks \n $ \n 321.7 \n $ \n 358.2 \n Interest bearing deposits in banks \n 886.9 \n 951.4 \n Federal funds sold \n 0.1 \n 0.1 \n Total cash and cash equivalents \n 1,208.7 \n 1,309.7 \n Investment securities: \n Available-for-sale, at fair value \n 5,716.6 \n 5,288.1 Held-to-maturity (estimated fair values of $2,082.7 at March 31, 2026 and $2,136.6 at December 31, 2025) 2,293.4 \n 2,342.1 \n Total investment securities \n 8,010.0 \n 7,630.2 \n FHLB and FRB stock, at cost \n 106.3 \n 106.3 Loans held for sale ($4.7 and $1.1 of which is recorded at fair value at March 31, 2026 and December 31, 2025, respectively) 70.8 \n 73.6 \n Loans held for investment, net of deferred fees and costs \n 14,728.4 \n 15,201.6 \n Allowance for credit losses \n (195.8) \n (191.4) \n Net loans held for investment \n 14,532.6 \n 15,010.2 \n Goodwill \n 1,100.9 \n 1,100.9 \n Company-owned life insurance \n 524.6 \n 523.0 \n Premises and equipment, net of accumulated depreciation \n 403.1 \n 406.6 \n Other intangibles, net of accumulated amortization \n 50.0 \n 53.3 \n Accrued interest receivable \n 101.3 \n 102.6 \n Mortgage servicing rights, net of accumulated amortization \n 22.5 \n 23.1 \n Other real estate owned \n 6.6 \n 3.4 \n Deferred tax asset, net \n 57.9 \n 59.6 \n Other assets \n 231.5 \n 238.1 \n Total assets \n $ \n 26,426.8 \n $ \n 26,640.6 \n Liabilities and Stockholders' Equity \n Deposits: \n Noninterest bearing \n $ \n 5,229.0 \n $ \n 5,286.8 \n Interest bearing \n 16,654.0 \n 16,801.5 \n Total deposits \n 21,883.0 \n 22,088.3 \n Securities sold under repurchase agreements \n 476.1 \n 479.6 \n Accounts payable and accrued expenses \n 373.7 \n 286.8 \n Accrued interest payable \n 33.1 \n 36.9 \n Long-term debt \n 146.7 \n 146.3 \n Allowance for credit losses on off-balance sheet credit exposures \n 5.8 \n 5.9 \n Subordinated debentures held by subsidiary trusts \n 149.9 \n 149.8 \n Total liabilities \n 23,068.3 \n 23,193.6 \n Stockholders' equity: Preferred stock, $0.00001 par value; 100,000 shares authorized at March 31, 2026 and December 31, 2025; zero issued and outstanding, respectively - \n - Common stock and additional paid-in-capital, $0.00001 par value; 150,000,000 shares authorized at March 31, 2026 and December 31, 2025; 97,446,230 and 101,105,745 shares issued and outstanding, respectively 2,265.5 \n 2,350.9 \n Retained earnings \n 1,288.7 \n 1,274.2 \n Accumulated other comprehensive loss, net \n (195.7) \n (178.1) \n Total stockholders' equity \n 3,358.5 \n 3,447.0 \n Total liabilities and stockholders' equity \n $ \n 26,426.8 \n $ \n 26,640.6 See accompanying notes to unaudited consolidated financial statements. \n 3 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n CONSOLIDATED STATEMENTS OF INCOME \n (In millions, except per share data) \n (Unaudited) Three Months Ended March 31, \n 2026 \n 2025 \n Interest income: \n Interest and fees on loans \n $ \n 206.4 \n $ \n 242.1 \n Interest and dividends on investment securities: \n Taxable \n 55.2 \n 51.3 \n Exempt from federal taxes \n 0.7 \n 0.7 \n Interest and dividends on FHLB and FRB stock \n 1.2 \n 2.9 \n Interest on deposits in banks \n 7.8 \n 6.3 \n Total interest income \n 271.3 \n 303.3 \n Interest expense: \n Interest on deposits \n 64.6 \n 75.1 \n Interest on securities sold under repurchase agreements \n 1.0 \n 1.2 \n Interest on other borrowed funds \n - \n 17.5 \n Interest on long-term debt \n 2.6 \n 1.7 \n Interest on subordinated debentures held by subsidiary trusts \n 2.4 \n 2.8 \n Total interest expense \n 70.6 \n 98.3 \n Net interest income \n 200.7 \n 205.0 \n Provision for credit losses \n 6.7 \n 20.0 \n Net interest income after provision for credit losses \n 194.0 \n 185.0 \n Noninterest income: \n Payment services revenues \n 15.6 \n 17.1 \n Mortgage banking revenues \n 1.3 \n 1.4 \n Wealth management revenues \n 10.5 \n 9.8 \n Service charges on deposit accounts \n 6.5 \n 6.6 \n Other service charges, commissions, and fees \n 2.1 \n 2.3 \n Other income \n 5.1 \n 4.8 \n Total noninterest income \n 41.1 \n 42.0 \n Noninterest expense: \n Salaries and wages \n 68.5 \n 68.6 \n Employee benefits \n 21.2 \n 20.0 \n Outsourced technology services \n 15.9 \n 14.2 \n Occupancy, net \n 13.4 \n 13.7 \n Furniture and equipment \n 5.2 \n 5.0 \n OREO expense, net \n (1.1) \n 0.5 \n Professional fees \n 4.9 \n 5.5 \n FDIC insurance premiums \n 2.8 \n 4.3 \n Other intangibles amortization \n 3.3 \n 3.4 \n Other expenses \n 23.5 \n 25.4 \n Total noninterest expense \n 157.6 \n 160.6 \n Income before income tax \n 77.5 \n 66.4 \n Provision for income tax \n 17.3 \n 16.2 \n Net income \n $ \n 60.2 \n $ \n 50.2 \n Earnings per common share (Basic) \n $ \n 0.61 \n $ \n 0.49 \n Earnings per common share (Diluted) \n 0.61 \n 0.49 See accompanying notes to unaudited consolidated financial statements. \n 4 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME \n (In millions) \n (Unaudited) Three Months Ended March 31, \n 2026 \n 2025 \n Net income \n $ \n 60.2 \n $ \n 50.2 \n Other comprehensive income, before tax: \n Investment securities available for sale: \n (Increase) decrease in unrealized losses during the period \n (23.5) \n 70.7 \n Net change in unamortized gains on available-for-sale securities transferred into held-to-maturity \n 0.1 \n - \n Cash flow hedges: \n Change in unrealized gains on derivatives \n - \n 1.0 \n Reclassification adjustment for derivatives net losses included in net income \n - \n 1.0 \n Other comprehensive (loss) income, before tax \n (23.4) \n 72.7 \n Deferred tax benefit (expense) related to other comprehensive income \n 5.8 \n (18.3) \n Other comprehensive (loss) income, net of tax \n (17.6) \n 54.4 \n Comprehensive income, net of tax \n $ \n 42.6 \n $ \n 104.6 See accompanying notes to unaudited consolidated financial statements. \n 5 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY \n (In millions, except share and per share data) \n (Unaudited) Three Months Ended March 31, \n Common \n stock \n Retained \n earnings \n Accumulated \n other \n comprehensive \n loss \n Total \n stockholders' \n equity \n Balance at December 31, 2025 \n $ \n 2,350.9 \n $ \n 1,274.2 \n $ \n (178.1) \n $ \n 3,447.0 \n Net income \n - \n 60.2 \n - \n 60.2 \n Other comprehensive loss, net of tax benefit \n - \n - \n (17.6) \n (17.6) \n Common stock transactions: 2,477,093 common shares purchased and retired (87.7) \n - \n - \n (87.7) 334,211 non-vested common shares issued - \n - \n - \n - 142,773 non-vested common shares forfeited or canceled - \n - \n - \n - \n Stock-based compensation expense \n 2.3 \n - \n - \n 2.3 Common stock cash dividends declared ($0.47 per share) - \n (45.7) \n - \n (45.7) \n Balance at March 31, 2026 \n $ \n 2,265.5 \n $ \n 1,288.7 \n $ \n (195.7) \n $ \n 3,358.5 \n Common \n stock \n Retained \n earnings \n Accumulated \n other \n comprehensive \n loss \n Total \n stockholders' \n equity \n Balance at December 31, 2024 \n $ \n 2,459.5 \n $ \n 1,166.4 \n $ \n (321.9) \n $ \n 3,304.0 \n Net income \n - \n 50.2 \n - \n 50.2 \n Other comprehensive income, net of tax expense \n - \n - \n 54.4 \n 54.4 \n Common stock transactions: 106,630 common shares purchased and retired (3.2) \n - \n - \n (3.2) 480,289 non-vested common shares issued - \n - \n - \n - 49,862 non-vested common shares forfeited or canceled - \n - \n - \n - \n Stock-based compensation expense \n 3.9 \n - \n - \n 3.9 Common stock cash dividends declared ($0.47 per share) - \n (48.0) \n - \n (48.0) \n Balance at March 31, 2025 \n $ \n 2,460.2 \n $ \n 1,168.6 \n $ \n (267.5) \n $ \n 3,361.3 See accompanying notes to unaudited consolidated financial statements. \n 6 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n CONSOLIDATED STATEMENTS OF CASH FLOWS \n (In millions) Three Months Ended March 31, \n (Unaudited) \n 2026 \n 2025 \n Cash flows from operating activities: \n Net income \n $ \n 60.2 \n $ \n 50.2 \n Adjustments to reconcile net income from operations to net cash provided by operating activities: \n Provision for credit losses \n 6.7 \n 20.0 \n Net loss on disposal of premises and equipment \n 0.2 \n 1.9 \n Depreciation and amortization \n 12.5 \n 10.5 \n Net (discount) premium amortization on investment securities \n (1.2) \n (0.1) \n Realized and unrealized net gains on mortgage banking activities \n (0.3) \n (0.3) \n Net (gains) losses and write-downs of OREO and other assets pending disposal \n (1.3) \n 0.5 \n Deferred taxes \n 7.5 \n 7.7 \n Net increase in cash surrender value of company-owned life insurance \n (4.2) \n (1.3) \n Stock-based compensation expense \n 2.3 \n 3.9 \n Originations of mortgage loans held for sale \n (10.5) \n (10.9) \n Proceeds from sales of mortgage loans held for sale \n 7.0 \n 11.6 \n Changes in operating assets and liabilities: \n Decrease in accrued interest receivable \n 1.3 \n 8.9 \n Decrease in other assets \n 8.7 \n 55.0 \n Decrease in accrued interest payable \n (3.8) \n (6.2) \n Decrease in accounts payable and accrued expenses \n (30.1) \n (72.9) \n Net cash provided by operating activities \n 55.0 \n 78.5 \n Cash flows from investing activities: \n Purchases of investment securities \n (514.2) \n (12.7) \n Proceeds from sales, maturities, and pay-downs of investment securities: \n Held-to-maturity \n 49.7 \n 49.0 \n Available-for-sale \n 179.5 \n 315.1 \n Net sales of FHLB and FRB stock \n - \n 27.4 \n Proceeds from company-owned life insurance settlements \n 1.0 \n 0.1 \n Net change in loans held for investment \n 475.5 \n 458.5 \n Proceeds from sale of OREO \n - \n 0.5 \n Capital expenditures, net of sales \n (5.2) \n (4.2) \n Net cash provided by investing activities \n 186.3 \n 833.7 \n Cash flows from financing activities: \n Net decrease in deposits \n (205.3) \n (282.8) \n Net (decrease) increase in securities sold under repurchase agreements \n (3.5) \n 4.1 \n Net decrease in other borrowed funds \n - \n (607.5) \n Repayments of long-term debt \n (0.1) \n - \n Purchase and retirement of common stock \n (87.7) \n (3.2) \n Dividends paid to common stockholders \n (45.7) \n (48.0) \n Net cash used in financing activities \n (342.3) \n (937.4) \n Net decrease in cash and cash equivalents \n (101.0) \n (25.2) \n Cash and cash equivalents at beginning of period \n 1,309.7 \n 896.6 \n Cash and cash equivalents at end of period \n $ \n 1,208.7 \n $ \n 871.4 7 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) \n (In millions) Three Months Ended March 31, \n (Unaudited) \n 2026 \n 2025 \n Supplemental disclosures of cash flow information: \n Cash paid during the period for interest expense \n $ \n 74.4 \n $ \n 104.5 \n Supplemental disclosures of noncash investing and financing activities: \n Amortization of unrealized gains and (losses) on transfers of securities \n $ \n (0.1) \n $ \n - \n Right-of-use assets, net obtained in exchange for operating lease liabilities \n - \n 7.2 \n Right-of-use assets obtained in exchange for financing lease liabilities \n 0.4 \n - \n Transfer of held-for-sale to held for investment loans, net \n 6.5 \n - \n Transfer of loans to other real estate owned \n 1.8 \n 0.1 \n Transfer of premises and equipment to held-for-sale \n 1.5 \n - \n Capitalization of internally originated mortgage servicing rights \n 0.2 \n 0.1 See accompanying notes to unaudited consolidated financial statements. \n 8 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) (1) BASIS OF PRESENTATION \n The accompanying unaudited consolidated financial statements of First Interstate BancSystem, Inc., and its consolidated subsidiaries, including its wholly-owned subsidiary, First Interstate Bank (\"FIB\" or \"Bank\") (collectively, the \"Company\") contain all adjustments (all of which are of a normal recurring nature) necessary to present fairly the financial position of the Company at March 31, 2026 and December 31, 2025, the results of operations, changes in stockholders' equity, and cash flows for each of the three months ended March 31, 2026 and 2025, in conformity with U.S. generally accepted accounting principles (\"GAAP\"). The balance sheet information at December 31, 2025 is derived from audited consolidated financial statements. The unaudited consolidated financial statements have been prepared in conformity with the required interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X; and therefore, do not include all of the information and footnotes required by GAAP for a complete set of financial statements. \n The Company has identified one reporting unit and one operating segment, community banking, which encompasses commercial and consumer banking services to serve a similar base of clients utilizing company-wide offerings of similar products and services managed through similar processes and platforms offered to individuals, businesses, municipalities, and other entities, whose primary sources of revenue are interest income on loans, investment securities and other interest-earning assets and fee income earned on its products and services. Its expenses consist of interest expense on deposits and borrowed funds, provision for credit losses, other operating expenses and income taxes, as further described below. The Company manages its business activities on a consolidated basis. \n The Company's chief operating decision maker (\"CODM\") is its Chief Executive Officer who is charged with management of the Company and is responsible for the evaluation of operating performance and decision making about the allocation of capital and resources. \n The CODM regularly assesses performance of the single operating and reporting segment and decides how to allocate resources based on net income calculated on the same basis as is net income reported in the Company's consolidated statements of income. The CODM is also regularly provided with expense information at a level consistent with that disclosed in the Company's consolidated statements of income. \n The Company's principal expenses include: (i) interest expense on deposit accounts and other borrowings; (ii) salaries and employee benefits; (iii) information technology and communication costs primarily associated with maintaining loan and deposit functions; (iv) furniture, equipment, and occupancy expenses for maintaining our facilities; (v) professional fees, including Federal Deposit Insurance Corporation (\"FDIC\") insurance assessments; (vi) income tax expense; (vii) provisions for credit losses; (viii) intangible amortization; (ix) other real estate owned expenses; and (x) other segment expenses including legal expenses, advertising and promotion, donations, credit card rewards expense, fees associated with originating and closing loans, insurance, and other expenses necessary to support our employees and service our clients. See the consolidated financial statements for other financial information regarding the Company's operating segment. \n The accounting policies of the segment are the same as those described in \"Note 1 - Summary of Significant Accounting Policies\" of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. \n These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, which includes a description of significant accounting policies. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. \n 9 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) (2) INVESTMENT SECURITIES \n The amortized cost and the approximate fair values of investment securities are summarized as follows: March 31, 2026 \n Amortized \n Cost \n Gross \n Unrealized \n Gains \n Gross \n Unrealized \n Losses \n Estimated \n Fair \n Value \n Available-for-Sale: \n U.S. Treasury notes \n $ \n 246.9 \n $ \n - \n $ \n (9.4) \n $ \n 237.5 \n State, county, and municipal securities \n 246.7 \n - \n (29.6) \n 217.1 \n Obligations of U.S. government agencies \n 180.3 \n - \n (4.4) \n 175.9 \n U.S. agency commercial mortgage-backed securities \n 875.7 \n 0.9 \n (36.7) \n 839.9 \n U.S. agency residential mortgage-backed securities \n 2,301.0 \n 1.9 \n (79.8) \n 2,223.1 \n U.S. agency collateralized mortgage obligations \n 949.0 \n 0.8 \n (68.9) \n 880.9 \n Private mortgage-backed securities \n 188.1 \n - \n (19.6) \n 168.5 \n Collateralized loan obligation \n 833.8 \n 0.1 \n (0.5) \n 833.4 \n Corporate securities \n 148.5 \n - \n (8.2) \n 140.3 \n Total \n $ \n 5,970.0 \n $ \n 3.7 \n $ \n (257.1) \n $ \n 5,716.6 \n March 31, 2026 Amortized \n Cost (1) Gross \n Unrealized \n Gains \n Gross \n Unrealized \n Losses \n Estimated \n Fair \n Value \n Held-to-Maturity: \n State, county, and municipal securities \n $ \n 173.1 \n $ \n 0.1 \n $ \n (19.6) \n $ \n 153.6 \n Obligations of U.S. government agencies \n 458.6 \n - \n (38.5) \n 420.1 \n U.S. agency commercial mortgage-backed securities \n 353.3 \n - \n (19.3) \n 334.0 \n U.S. agency residential mortgage-backed securities \n 908.5 \n - \n (85.5) \n 823.0 \n U.S. agency collateralized mortgage obligations \n 370.5 \n 0.4 \n (48.1) \n 322.8 \n Corporate securities \n 29.9 \n - \n (0.7) \n 29.2 \n Total \n $ \n 2,293.9 \n $ \n 0.5 \n $ \n (211.7) \n $ \n 2,082.7 (1) Amortized cost presented above is net of an allowance for credit losses of $0.5 million and includes $5.5 million of unamortized gains and $13.1 million of unamortized losses related to the 2021 and 2022 transfer of securities from available-for-sale to held-to-maturity, respectively. December 31, 2025 \n Amortized \n Cost \n Gross \n Unrealized \n Gains \n Gross \n Unrealized \n Losses \n Estimated \n Fair \n Value \n Available-for-Sale: \n U.S. Treasury notes \n $ \n 246.5 \n $ \n - \n $ \n (8.8) \n $ \n 237.7 \n State, county, and municipal securities \n 247.3 \n - \n (27.2) \n 220.1 \n Obligations of U.S. government agencies \n 205.1 \n - \n (4.2) \n 200.9 \n U.S. agency commercial mortgage-backed securities \n 891.7 \n 1.1 \n (36.1) \n 856.7 \n U.S. agency residential mortgage-backed securities \n 1,834.4 \n 4.4 \n (68.7) \n 1,770.1 \n U.S. agency collateralized mortgage obligations \n 986.1 \n 1.4 \n (64.8) \n 922.7 \n Private mortgage-backed securities \n 193.9 \n - \n (19.5) \n 174.4 \n Collateralized loan obligation \n 754.3 \n 1.2 \n - \n 755.5 \n Corporate securities \n 158.7 \n - \n (8.7) \n 150.0 \n Total \n $ \n 5,518.0 \n $ \n 8.1 \n $ \n (238.0) \n $ \n 5,288.1 10 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) \n December 31, 2025 Amortized \n Cost (1) Gross \n Unrealized \n Gains \n Gross \n Unrealized \n Losses \n Estimated \n Fair \n Value \n Held-to-Maturity: \n State, county, and municipal securities \n $ \n 173.2 \n $ \n 0.2 \n $ \n (18.6) \n $ \n 154.8 \n Obligations of U.S. government agencies \n 462.3 \n - \n (37.7) \n 424.6 \n U.S. agency commercial mortgage-backed securities \n 354.8 \n - \n (18.8) \n 336.0 \n U.S. agency residential mortgage-backed securities \n 941.3 \n 0.1 \n (84.7) \n 856.7 \n U.S. agency collateralized mortgage obligations \n 381.1 \n 0.7 \n (46.4) \n 335.4 \n Corporate securities \n 29.9 \n - \n (0.8) \n 29.1 \n Total \n $ \n 2,342.6 \n $ \n 1.0 \n $ \n (207.0) \n $ \n 2,136.6 (1) Amortized cost presented above is net of an allowance for credit losses of $0.5 million and includes $5.9 million of unamortized gains and $13.7 million of unamortized losses related to the 2021 and 2022 transfer of securities from available-for-sale to held-to-maturity, respectively. \n The following tables show the gross unrealized losses and fair values of available-for-sale investment securities and the length of time individual investment securities have been in an unrealized loss position as of March 31, 2026 and December 31, 2025. Less than 12 Months \n 12 Months or More \n Total \n March 31, 2026 \n Fair \n Value \n Gross \n Unrealized \n Losses \n Fair \n Value \n Gross \n Unrealized \n Losses \n Fair \n Value \n Gross \n Unrealized \n Losses \n Available-for-Sale: \n U.S. Treasury notes \n $ \n - \n $ \n - \n $ \n 237.5 \n $ \n (9.4) \n $ \n 237.5 \n $ \n (9.4) \n State, county, and municipal securities \n 8.7 \n - \n 207.4 \n (29.6) \n 216.1 \n (29.6) \n Obligations of U.S. government agencies \n 1.7 \n - \n 171.2 \n (4.4) \n 172.9 \n (4.4) \n U.S. agency commercial mortgage-backed securities \n 1.3 \n - \n 805.9 \n (36.7) \n 807.2 \n (36.7) \n U.S. agency residential mortgage-backed securities \n 971.7 \n (9.9) \n 894.4 \n (69.9) \n 1,866.1 \n (79.8) \n U.S. agency collateralized mortgage obligations \n 6.2 \n - \n 830.4 \n (68.9) \n 836.6 \n (68.9) \n Private mortgage-backed securities \n - \n - \n 168.4 \n (19.6) \n 168.4 \n (19.6) \n Collateralized loan obligation \n 459.8 \n (0.5) \n - \n - \n 459.8 \n (0.5) \n Corporate securities \n 12.5 \n - \n 127.8 \n (8.2) \n 140.3 \n (8.2) \n Total \n $ \n 1,461.9 \n $ \n (10.4) \n $ \n 3,443.0 \n $ \n (246.7) \n $ \n 4,904.9 \n $ \n (257.1) \n Less than 12 Months \n 12 Months or More \n Total \n December 31, 2025 \n Fair \n Value \n Gross \n Unrealized \n Losses \n Fair \n Value \n Gross \n Unrealized \n Losses \n Fair \n Value \n Gross \n Unrealized \n Losses \n Available-for-Sale: \n U.S. Treasury notes \n $ \n - \n $ \n - \n $ \n 237.7 \n $ \n (8.8) \n $ \n 237.7 \n $ \n (8.8) \n State, county, and municipal securities \n - \n - \n 210.4 \n (27.2) \n 210.4 \n (27.2) \n Obligations of U.S. government agencies \n 2.4 \n - \n 195.8 \n (4.2) \n 198.2 \n (4.2) \n U.S. agency commercial mortgage-backed securities \n 1.3 \n - \n 821.6 \n (36.1) \n 822.9 \n (36.1) \n U.S. agency residential mortgage-backed securities \n 254.4 \n (1.1) \n 956.5 \n (67.6) \n 1,210.9 \n (68.7) \n U.S. agency collateralized mortgage obligations \n - \n - \n 869.9 \n (64.8) \n 869.9 \n (64.8) \n Private mortgage-backed securities \n - \n - \n 174.3 \n (19.5) \n 174.3 \n (19.5) \n Corporate securities \n - \n - \n 150.0 \n (8.7) \n 150.0 \n (8.7) \n Total \n $ \n 258.1 \n $ \n (1.1) \n $ \n 3,616.2 \n $ \n (236.9) \n $ \n 3,874.3 \n $ \n (238.0) 11 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) The Company determines the allowance for credit losses on both available-for-sale and held-to-maturity investment securities by a discounted cash flow approach when needed, using each security's effective interest rate at the time of purchase or upon acquisition. The allowance for credit losses for available-for-sale investment securities is measured as the amount by which an investment security's amortized cost exceeds the net present value of expected future cash flows, however, the amount of credit losses is limited to the amount of a security's unrealized loss. The allowance for credit loss on held-to-maturity investment securities is representative of current expected credit losses that management expects to be incurred over the life of the investment and established through a charge to provision for credit losses in current period earnings. For held-to-maturity investment securities, the Company has the intent and ability to hold these investment securities to maturity. \n The investment securities portfolio primarily contains securities that are guaranteed by a sovereign entity or are generally considered to have non-credit related risks, such as interest rate risk or liquidity factors. The Company considers whether the securities are issued by the federal government or its agencies and whether downgrades by bond rating agencies have occurred. \n As of March 31, 2026 and December 31, 2025, the Company had 701 and 633 individual available-for-sale investment securities, respectively, that were in an unrealized loss position, which was related primarily to fluctuations in current interest rates. As of March 31, 2026, the Company does not intend to sell nor is it more likely than not the Company will be required to sell any available-for-sale securities with unrealized losses. \n The Company had no allowance for credit losses on available-for-sale investment securities as of March 31, 2026 and December 31, 2025. \n On a quarterly basis, the Company refreshes the credit quality indicator of each held-to-maturity security. As of March 31, 2026 and December 31, 2025, the held-to-maturity portfolio is primarily composed of investment grade or better securities. The Company had a $0.5 million and a $0.5 million allowance for credit losses for held-to-maturity corporate and state, county, and municipal investment securities as of March 31, 2026 and December 31, 2025, respectively. \n As of March 31, 2026 and December 31, 2025, the Company had $29.4 million and $27.8 million, respectively, of accrued interest receivable from investment securities on the consolidated balance sheets. Accrued interest receivable is presented as a separate line item on the consolidated balance sheets and is not included in the carrying value of our securities. \n During the three months ended March 31, 2026 and 2025, there were no gross realized gains or losses on the disposition of available-for-sale investment securities. \n The following schedule represents the amortized cost of debt securities by contractual maturity except for maturities of mortgage-backed securities, which have been adjusted to reflect shorter maturities based upon estimated prepayments of principal. Available-for-Sale \n Held-to-Maturity \n March 31, 2026 \n Amortized \n Cost \n Estimated \n Fair Value \n Amortized \n Cost \n Estimated \n Fair Value \n Within one year \n $ \n 215.7 \n $ \n 214.0 \n $ \n 46.0 \n $ \n 45.9 \n After one year but within five years \n 1,164.4 \n 1,112.7 \n 640.0 \n 605.0 \n After five years but within ten years \n 907.2 \n 835.1 \n 400.5 \n 364.1 \n After ten years \n 3,682.7 \n 3,554.8 \n 1,207.4 \n 1,067.7 \n Total \n $ \n 5,970.0 \n $ \n 5,716.6 \n $ \n 2,293.9 \n $ \n 2,082.7 As of March 31, 2026, the Company held investment securities callable within one year having amortized costs and estimated fair values of $631.7 million and $604.9 million, respectively. These investment securities are primarily included in the \"after five year\" categories in the table above. \n As of March 31, 2026 and December 31, 2025, the Company had securities with carrying values of $2,812.0 million and $2,983.6 million, respectively, for investment securities pledged to secure public deposits, derivatives, and securities sold under repurchase agreements that had estimated fair values as of March 31, 2026 and December 31, 2025, of $2,604.3 million and $2,781.2 million, respectively. All securities sold under repurchase agreements are \n 12 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) with clients and mature on the next banking day. The Company retains possession of the underlying securities sold under repurchase agreements. \n As of March 31, 2026 and December 31, 2025, the Company held $106.3 million and $106.3 million, respectively, in equity securities primarily in a combination of Federal Reserve Bank and Federal Home Loan Bank (\"FHLB\") stocks, which are restricted nonmarketable securities acquired to meet regulatory requirements and related to outstanding borrowings. These securities are carried at cost. \n (3) LOANS HELD FOR SALE \n Residential mortgage loans that the Company originated with the intent to sell are recorded at fair value. The following table presents (i) residential mortgage loans recorded at fair value and (ii) other loans held for sale at lower of cost or market by class of receivable related to the sale of eleven Nebraska branches (which was pending as of March 31, 2026), in addition to the pending sale of approximately $253.6 million in deposits as of March 31, 2026, for the dates indicated: March 31, \n 2026 \n December 31, \n 2025 \n Real estate: \n Commercial \n $ \n 16.7 \n $ \n 19.5 \n Construction \n 0.7 \n 1.3 \n Residential \n 3.3 \n 3.5 \n Residential mortgage, at fair value \n 4.7 \n 1.1 \n Agricultural \n 16.0 \n 17.8 \n Total real estate \n 41.4 \n 43.2 \n Consumer: \n Direct and advance lines \n 2.3 \n 2.5 \n Total consumer \n 2.3 \n 2.5 \n Commercial \n 6.5 \n 7.4 \n Agricultural \n 20.6 \n 20.5 \n Total loans held for sale \n $ \n 70.8 \n $ \n 73.6 13 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) (4) LOANS HELD FOR INVESTMENT \n The following table presents loans by class of receivable and portfolio segment as of the dates indicated: March 31, \n 2026 \n December 31, \n 2025 \n Real estate: \n Commercial \n $ \n 8,040.5 \n $ \n 8,144.4 \n Construction \n 669.1 \n 837.2 \n Residential \n 2,084.3 \n 2,108.8 \n Agricultural \n 619.2 \n 629.0 \n Total real estate \n 11,413.1 \n 11,719.4 \n Consumer: \n Indirect \n 419.4 \n 477.5 \n Direct and advance lines \n 128.0 \n 131.5 \n Total consumer \n 547.4 \n 609.0 \n Commercial \n 2,342.9 \n 2,359.6 \n Agricultural \n 426.8 \n 520.2 \n Other, including overdrafts \n 5.8 \n 1.7 \n Loans held for investment \n 14,736.0 \n 15,209.9 \n Deferred loan fees and costs \n (7.6) \n (8.3) \n Loans held for investment, net of deferred fees and costs \n 14,728.4 \n 15,201.6 \n Allowance for credit losses \n (195.8) \n (191.4) \n Net loans held for investment \n $ \n 14,532.6 \n $ \n 15,010.2 Allowance for Credit Losses \n The following tables represent, by loan portfolio segments, the activity in the allowance for credit losses for loans held for investment: Three Months Ended March 31, 2026 \n Beginning Balance \n Provision for (reversal of) Credit Losses Loans Charged-Off (2) Recoveries Collected \n Ending Balance Allowance for credit losses (1) Real estate \n $ \n 131.2 \n $ \n (3.3) \n $ \n (0.5) \n $ \n 1.5 \n $ \n 128.9 \n Consumer \n 11.2 \n 3.9 \n (3.8) \n 1.0 \n 12.3 \n Commercial \n 36.9 \n 5.2 \n (2.2) \n 1.5 \n 41.4 \n Agricultural \n 12.1 \n 1.0 \n - \n 0.1 \n 13.2 \n Total allowance for credit losses \n $ \n 191.4 \n $ \n 6.8 \n $ \n (6.5) \n $ \n 4.1 \n $ \n 195.8 \n Three Months Ended March 31, 2025 \n Beginning Balance \n Provision for (reversal of) Credit Losses Loans Charged-Off (2) Recoveries Collected \n Ending Balance Allowance for credit losses (1) Real estate \n $ \n 139.4 \n $ \n 6.8 \n $ \n (0.3) \n $ \n 0.1 \n $ \n 146.0 \n Consumer \n 16.8 \n 2.6 \n (4.7) \n 1.2 \n 15.9 \n Commercial \n 38.9 \n 9.8 \n (2.9) \n 0.5 \n 46.3 \n Agricultural \n 9.0 \n 1.0 \n (2.9) \n - \n 7.1 \n Total allowance for credit losses \n $ \n 204.1 \n $ \n 20.2 \n $ \n (10.8) \n $ \n 1.8 \n $ \n 215.3 (1) Amounts presented exclude the ACL related to unfunded commitments and investment securities. The allowance for credit losses related to unfunded commitments and investment securities are included in the \"Financial Instruments with Off-Balance Sheet Risk\" Note and \"Investment Securities\" Note, respectively. \n (2) Loans, or portions thereof, are charged-off against the ACL when management believes the collectability of the principal is unlikely, or, with respect to consumer installment loans, according to an established delinquency schedule. \n 14 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) Collateral-Dependent Loans \n A collateral-dependent loan relies substantially on the operation or sale of the collateral securing the loan for repayment. A loan may become collateral-dependent when foreclosure is probable or the borrower is experiencing financial difficulty and its sources of repayment become inadequate over time. \n The following tables present the principal balance of collateral-dependent loans by class of receivable as of the dates indicated: Collateral Type \n As of March 31, 2026 \n Business Assets \n Real Property \n Other \n Total \n Real estate: \n Commercial \n $ \n - \n $ \n 31.4 \n $ \n - \n $ \n 31.4 \n Construction \n - \n 3.7 \n - \n 3.7 \n Residential \n - \n 2.6 \n - \n 2.6 \n Agricultural \n 0.4 \n 24.6 \n - \n 25.0 \n Total real estate \n 0.4 \n 62.3 \n - \n 62.7 \n Commercial \n 23.6 \n 7.4 \n 2.2 \n 33.2 \n Agricultural \n 23.5 \n 0.4 \n 1.0 \n 24.9 \n Total collateral-dependent loans \n $ \n 47.5 \n $ \n 70.1 \n $ \n 3.2 \n $ \n 120.8 \n Collateral Type \n As of December 31, 2025 \n Business Assets \n Real Property \n Other \n Total \n Real estate: \n Commercial \n $ \n - \n $ \n 33.5 \n $ \n - \n $ \n 33.5 \n Construction \n - \n 3.8 \n - \n 3.8 \n Residential \n - \n 2.6 \n - \n 2.6 \n Agricultural \n 0.5 \n 23.3 \n - \n 23.8 \n Total real estate \n 0.5 \n 63.2 \n - \n 63.7 \n Commercial \n 5.3 \n 8.4 \n 1.3 \n 15.0 \n Agricultural \n 22.9 \n 0.5 \n - \n 23.4 \n Total collateral-dependent loans \n $ \n 28.7 \n $ \n 72.1 \n $ \n 1.3 \n $ \n 102.1 15 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) Loans are considered past due if the required principal and interest payments have not been received 30 days or more past the contractual payment due date. Loans classified in the following table as 90 days or more past due continue to accrue interest. The following tables present the contractual aging of the Company's recorded principal balance of loans by class of receivable as of the dates indicated: 30 - 59 \n 60 - 89 \n 90 or more \n Days \n Days \n Days \n Total Loans \n Current \n Non-accrual \n Total \n As of March 31, 2026 \n Past Due \n Past Due \n Past Due \n Past Due \n Loans Loans (1)(2)(3) Loans \n Real estate: \n Commercial \n $ \n 12.5 \n $ \n 25.3 \n $ \n - \n $ \n 37.8 \n $ \n 7,968.1 \n $ \n 34.6 \n $ \n 8,040.5 \n Construction \n 0.3 \n 0.6 \n - \n 0.9 \n 663.9 \n 4.3 \n 669.1 \n Residential \n 8.6 \n 0.5 \n - \n 9.1 \n 2,061.5 \n 13.7 \n 2,084.3 \n Agricultural \n 4.6 \n 0.3 \n 0.1 \n 5.0 \n 586.7 \n 27.5 \n 619.2 \n Total real estate \n 26.0 \n 26.7 \n 0.1 \n 52.8 \n 11,280.2 \n 80.1 \n 11,413.1 \n Consumer: \n Indirect \n 4.7 \n 1.4 \n 0.2 \n 6.3 \n 408.8 \n 4.3 \n 419.4 \n Direct and advance lines \n 0.5 \n 0.3 \n - \n 0.8 \n 126.5 \n 0.7 \n 128.0 \n Total consumer \n 5.2 \n 1.7 \n 0.2 \n 7.1 \n 535.3 \n 5.0 \n 547.4 \n Commercial \n 6.2 \n 1.6 \n 0.8 \n 8.6 \n 2,291.5 \n 42.8 \n 2,342.9 \n Agricultural \n 4.1 \n 0.4 \n - \n 4.5 \n 395.4 \n 26.9 \n 426.8 \n Other, including overdrafts \n - \n - \n - \n - \n 5.8 \n - \n 5.8 \n Loans held for investment \n $ \n 41.5 \n $ \n 30.4 \n $ \n 1.1 \n $ \n 73.0 \n $ \n 14,508.2 \n $ \n 154.8 \n $ \n 14,736.0 \n 30 - 59 \n 60 - 89 \n 90 or more \n Days \n Days \n Days \n Total Loans \n Current \n Non-accrual \n Total \n As of December 31, 2025 \n Past Due \n Past Due \n Past Due \n Past Due \n Loans Loans (1)(2)(3) Loans \n Real estate: \n Commercial \n $ \n 34.1 \n $ \n 5.7 \n $ \n 0.3 \n $ \n 40.1 \n $ \n 8,068.7 \n $ \n 35.6 \n $ \n 8,144.4 \n Construction \n 13.4 \n 0.1 \n - \n 13.5 \n 819.4 \n 4.3 \n 837.2 \n Residential \n 8.3 \n 2.5 \n 0.1 \n 10.9 \n 2,084.0 \n 13.9 \n 2,108.8 \n Agricultural \n 0.2 \n - \n - \n 0.2 \n 601.7 \n 27.1 \n 629.0 \n Total real estate \n 56.0 \n 8.3 \n 0.4 \n 64.7 \n 11,573.8 \n 80.9 \n 11,719.4 \n Consumer: \n Indirect \n 6.5 \n 1.7 \n 0.1 \n 8.3 \n 463.6 \n 5.6 \n 477.5 \n Direct and advance lines \n 0.9 \n 0.2 \n - \n 1.1 \n 129.7 \n 0.7 \n 131.5 \n Total consumer \n 7.4 \n 1.9 \n 0.1 \n 9.4 \n 593.3 \n 6.3 \n 609.0 \n Commercial \n 3.1 \n 4.9 \n 0.9 \n 8.9 \n 2,329.0 \n 21.7 \n 2,359.6 \n Agricultural \n 0.5 \n 0.6 \n - \n 1.1 \n 494.5 \n 24.6 \n 520.2 \n Other, including overdrafts \n - \n - \n - \n - \n 1.7 \n - \n 1.7 \n Loans held for investment \n $ \n 67.0 \n $ \n 15.7 \n $ \n 1.4 \n $ \n 84.1 \n $ \n 14,992.3 \n $ \n 133.5 \n $ \n 15,209.9 (1) As of March 31, 2026 and December 31, 2025, none of our non-accrual loans were earning interest income. Additionally, $1.3 million and $0.4 million interest income was recognized on non-accrual loans during the three months ended March 31, 2026 and 2025, respectively. There were $0.5 million and $1.5 million in reversals of accrued interest during the three months ended March 31, 2026 and 2025, respectively. \n (2) As of March 31, 2026 and December 31, 2025, there were approximately $53.1 million and $59.8 million, respectively, of non-accrual loans for which there was no related allowance for credit loss, as these loans had sufficient collateral securing the loan for repayment. \n (3) As of March 31, 2026, there were approximately $8.0 million, $6.8 million, and $80.8 million of non-accrual loans that were 30-59 days past due, 60-89 days past due, and 90 days or more past due, respectively. As of December 31, 2025, there were approximately $4.5 million, $3.8 million, and $60.5 million of non-accrual loans that were 30-59 days past due, 60-89 days past due, and 90 days or more past due, respectively. \n 16 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) Modifications to Borrowers Experiencing Financial Difficulty \n Modifications of loans are made in the ordinary course of business and are completed on a case-by-case basis through negotiation with the borrower in connection with the ongoing loan collection processes. Loan modifications are made to provide payment relief to borrowers experiencing financial difficulty. \n From time to time, we may modify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications may result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination thereof, among other things. \n The following tables present the amortized cost basis of loans, by class and by type of modification, at March 31, 2026 and 2025 that were both experiencing financial difficulty and modified during the periods indicated. The percentage of the principal balance of loans that were modified to borrowers in financial distress as compared to the principal balance of each class of receivable is also presented below: Three Months Ended March 31, 2026 \n Term Extension \n Term Extension and Interest Rate Reduction \n Total % of Total Class of Loans Held for Investment (1) Real estate: \n Commercial \n $ \n 1.3 \n $ \n 0.2 \n $ \n 1.5 \n 0.02 \n % \n Construction \n 1.7 \n - \n 1.7 \n 0.25 \n Agricultural \n 11.4 \n - \n 11.4 \n 1.84 \n Total real estate \n 14.4 \n 0.2 \n 14.6 \n 0.13 \n Consumer: \n Direct and advance lines \n 0.1 \n - \n 0.1 \n 0.08 \n Total consumer \n 0.1 \n - \n 0.1 \n Commercial \n 8.2 \n 0.2 \n 8.4 \n 0.36 \n Agricultural \n 8.1 \n - \n 8.1 \n 1.90 Loans held for investment (2) $ \n 30.8 \n $ \n 0.4 \n $ \n 31.2 \n 0.21 \n Three Months Ended March 31, 2025 \n Term Extension \n Term Extension and Interest Rate Reduction \n Total % of Total Class of Loans Held for Investment (1) Real estate: \n Commercial \n $ \n 8.5 \n $ \n 0.8 \n $ \n 9.3 \n 0.10 \n % \n Construction \n 11.6 \n - \n 11.6 \n 1.06 \n Residential \n 0.1 \n 0.1 \n 0.2 \n 0.01 \n Total real estate \n 20.2 \n 0.9 \n 21.1 \n 0.16 \n Commercial \n 0.7 \n 0.1 \n 0.8 \n 0.03 \n Agricultural \n 1.0 \n 1.9 \n 2.9 \n 0.49 Loans held for investment (2) $ \n 21.9 \n $ \n 2.9 \n $ \n 24.8 \n 0.14 (1) Based on the principal balance as of period end, divided by the period end principal balance of the corresponding class of receivables. \n (2) As of March 31, 2026 and 2025 , the Company excluded $0.1 million and $0.1 million, respectively, in accrued interest from the amortized cost of the identified loans. \n 17 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the periods indicated: Term Extension and Interest Rate Reduction \n Three Months Ended March 31, 2026 \n Weighted-Average Months of Term Extension \n Weighted-Average Months of Term Extension \n Weighted-Average Interest Rate Reduction \n Real estate: \n Commercial \n 12.6 \n 120.0 \n 1.7 \n % \n Construction \n 8.1 \n 0.0 \n - \n Agricultural \n 11.7 \n 0.0 \n - \n Total real estate \n Consumer: \n Direct and advance lines \n 38.1 \n 0.0 \n - \n Total consumer \n Commercial \n 12.8 \n 3.0 \n 0.8 \n Agricultural \n 6.2 \n 0.0 \n - Loans held for investment (1) Term Extension and Interest Rate Reduction \n Three Months Ended March 31, 2025 \n Weighted-Average Months of Term Extension \n Weighted-Average Months of Term Extension \n Weighted-Average Interest Rate Reduction \n Real estate: \n Commercial \n 8.8 \n 13.3 \n 0.85 \n % \n Construction \n 5.8 \n 0.0 \n - \n Residential \n 4.0 \n 94.0 \n 2.0 \n Total real estate \n Commercial \n 8.6 \n 5.0 \n 0.5 \n Agricultural \n 7.5 \n 7.4 \n 1.0 Loans held for investment (1) \n (1) Balances based on loan original contractual terms. \n The Company monitors the performance of loan modifications to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. Of the accruing loans that were modified during the twelve-months ended March 31, 2026 and 2025, there were $3.6 million and $0.5 million of loans classified as past due 30 days or more, respectively, with the remaining accruing loans performing in accordance with the modified terms and classified as current at March 31, 2026 and 2025. Of the non-accrual loans that were modified during the twelve-months ended March 31, 2026 and 2025, there were $23.9 million and $30.3 million of loans classified as past due 30 days or more, respectively, with the remaining non-accrual loans performing in accordance with the modified terms and classified as current at March 31, 2026 and 2025. \n There were no commitments to lend additional funds related to the loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2026 and 2025. \n There were $20.3 million and $24.0 million of payment defaults on these loans subsequent to their modifications during the twelve-months ended March 31, 2026 and 2025. The Company considers a payment default to occur when the loan is 90 days or more past due or the loan is placed on non-accrual status after the modification. The Company monitors the performance of modified loans on an ongoing basis. In the event of subsequent default, the allowance for credit losses continues to be reassessed based on an individual evaluation of each loan. The modifications made during the periods presented did not significantly impact the Company's determination of the allowance for credit losses. \n 18 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) Credit Quality Indicators \n As part of the on-going and continuous monitoring of the credit quality of the Company's loan portfolio, management tracks internally assigned risk classifications of loans based on relevant information about the ability of borrowers to service their debt. The factors considered by the Company include, among other factors, the borrower's current financial information, historical payment experience, credit documentation, public information, and current economic trends. The Company analyzes loans individually to classify the credit risk of the loans. This analysis generally includes loans with an outstanding balance greater than $1.0 million, which are generally considered non-homogeneous loans, such as commercial loans and commercial real estate loans. This analysis is performed no less than on an annual basis, depending upon the size of exposure and the contractual obligations governing the borrower's financial reporting frequency. Homogeneous loans, including small business loans, are typically monitored by payment performance. The Company internally risk rates its loans in accordance with a Uniform Classification System developed jointly by the various bank regulatory agencies. The Uniform Classification System defines three broad categories of criticized assets, which the Company uses as credit quality indicators in addition to the 6 Pass ratings in its 10-point rating scale: \n Special Mention - includes loans that exhibit a potential weakness in financial condition, loan structure, or documentation that warrants management's close attention. If not promptly corrected, the potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. \n Substandard - includes loans that are inadequately protected by the current net worth and paying capacity of the borrower which have well-defined weaknesses that jeopardize the liquidation of the debt. Although the primary source of repayment for a substandard loan may not currently be sufficient, collateral or other sources of repayment are sufficient to satisfy the debt. \n Doubtful - includes loans that exhibit pronounced weaknesses based on currently existing facts, conditions, and values to a point where collection or liquidation for full repayment is highly questionable and improbable. Doubtful loans are required to be placed on non-accrual status and are assigned specific loss exposure. \n Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered pass-rated loans. A pass-rated loan can be assets where there is virtually no credit risk, such as cash secured loans with funds on deposit with the Bank. Pass-rated loans also include loans that are on our watch lists; these loans are currently performing but are subject to closer monitoring due to certain risk factors or emerging weaknesses that could, if not corrected, result in future deterioration of repayment capacity. These loans do not meet the criteria for classification as Special Mention or a criticized asset, but are included on the bank's internal watch list to ensure proactive management and early identification of potential credit issues. \n 19 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) The Company evaluates the credit quality and loan performance for the allowance for credit losses of the following class of receivables by origination year using the origination date or the loan's subsequent renewal or modification date based on the aforementioned risk scale as of and for the periods ended: Term Loans Amortized Cost Basis by Origination Year \n As of March 31, 2026 \n 2026 \n 2025 \n 2024 \n 2023 \n 2022 \n Prior \n Revolving Loans Amortized Cost Basis \n Revolving Loans Converted To Term \n Total \n Commercial real estate: \n Pass \n $ \n 255.1 \n $ \n 991.1 \n $ \n 947.9 \n $ \n 1,058.0 \n $ \n 1,276.4 \n $ \n 2,772.6 \n $ \n 60.4 \n $ \n 72.1 \n $ \n 7,433.6 \n Special mention \n 2.8 \n 59.3 \n 24.1 \n 46.8 \n 69.3 \n 156.1 \n 0.6 \n - \n 359.0 \n Substandard \n 31.1 \n 66.8 \n 8.0 \n 28.5 \n 31.6 \n 67.7 \n - \n - \n 233.7 \n Doubtful \n - \n 1.9 \n 5.0 \n 6.1 \n 0.8 \n 0.4 \n - \n - \n 14.2 \n Total \n 289.0 \n 1,119.1 \n 985.0 \n 1,139.4 \n 1,378.1 \n 2,996.8 \n 61.0 \n 72.1 \n 8,040.5 \n Construction real estate: \n Pass \n 24.1 \n 198.3 \n 148.7 \n 68.3 \n 106.0 \n 44.8 \n 40.7 \n 1.1 \n 632.0 \n Special mention \n - \n 9.4 \n 0.6 \n - \n 0.1 \n - \n - \n - \n 10.1 \n Substandard \n 1.7 \n 2.8 \n 5.2 \n 0.2 \n 14.5 \n 0.2 \n 0.4 \n - \n 25.0 \n Doubtful \n - \n - \n 1.3 \n - \n - \n 0.7 \n - \n - \n 2.0 \n Total \n 25.8 \n 210.5 \n 155.8 \n 68.5 \n 120.6 \n 45.7 \n 41.1 \n 1.1 \n 669.1 \n Agricultural real estate: \n Pass \n 29.9 \n 92.6 \n 57.8 \n 34.6 \n 99.9 \n 175.8 \n 22.7 \n 0.9 \n 514.2 \n Special mention \n 1.1 \n 1.8 \n 8.3 \n 2.9 \n 3.6 \n 18.9 \n 3.9 \n - \n 40.5 \n Substandard \n 19.8 \n 2.5 \n 14.2 \n 6.5 \n 4.3 \n 13.8 \n 0.7 \n - \n 61.8 \n Doubtful \n - \n - \n - \n - \n - \n 2.7 \n - \n - \n 2.7 \n Total \n 50.8 \n 96.9 \n 80.3 \n 44.0 \n 107.8 \n 211.2 \n 27.3 \n 0.9 \n 619.2 \n Commercial: \n Pass \n 102.8 \n 278.9 \n 224.4 \n 204.6 \n 257.9 \n 427.1 \n 625.9 \n 48.3 \n 2,169.9 \n Special mention \n 0.2 \n 3.4 \n 24.3 \n 2.8 \n 5.4 \n 1.8 \n 54.5 \n - \n 92.4 \n Substandard \n 8.1 \n 8.0 \n 7.8 \n 2.2 \n 10.3 \n 5.2 \n 8.9 \n 0.2 \n 50.7 \n Doubtful \n - \n 5.0 \n 1.3 \n - \n 5.4 \n 0.5 \n - \n 17.7 \n 29.9 \n Total \n 111.1 \n 295.3 \n 257.8 \n 209.6 \n 279.0 \n 434.6 \n 689.3 \n 66.2 \n 2,342.9 \n Agricultural: \n Pass \n 31.7 \n 46.7 \n 19.5 \n 12.4 \n 22.0 \n 9.1 \n 195.7 \n 0.1 \n 337.2 \n Special mention \n 0.3 \n 13.8 \n 1.2 \n 0.4 \n 1.3 \n - \n 24.5 \n - \n 41.5 \n Substandard \n 3.5 \n 3.8 \n 3.1 \n 0.8 \n 1.3 \n 0.6 \n 14.9 \n 0.9 \n 28.9 \n Doubtful \n - \n 14.6 \n - \n 2.6 \n - \n - \n 2.0 \n - \n 19.2 \n Total \n $ \n 35.5 \n $ \n 78.9 \n $ \n 23.8 \n $ \n 16.2 \n $ \n 24.6 \n $ \n 9.7 \n $ \n 237.1 \n $ \n 1.0 \n $ \n 426.8 20 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) \n Term Loans Amortized Cost Basis by Origination Year \n As of December 31, 2025 \n 2025 \n 2024 \n 2023 \n 2022 \n 2021 \n Prior \n Revolving Loans Amortized Cost Basis \n Revolving Loans Converted To Term \n Total \n Commercial real estate: \n Pass \n $ \n 1,025.6 \n $ \n 948.6 \n $ \n 1,095.2 \n $ \n 1,344.8 \n $ \n 1,101.6 \n $ \n 1,892.9 \n $ \n 59.0 \n $ \n 49.5 \n $ \n 7,517.2 \n Special mention \n 96.3 \n 28.9 \n 43.7 \n 35.4 \n 64.6 \n 88.4 \n 0.6 \n - \n 357.9 \n Substandard \n 81.1 \n 41.4 \n 27.8 \n 32.7 \n 27.7 \n 48.4 \n - \n - \n 259.1 \n Doubtful \n 1.9 \n 2.2 \n 5.7 \n - \n 0.4 \n - \n - \n - \n 10.2 \n Total \n 1,204.9 \n 1,021.1 \n 1,172.4 \n 1,412.9 \n 1,194.3 \n 2,029.7 \n 59.6 \n 49.5 \n 8,144.4 \n Construction: \n Pass \n 240.1 \n 211.5 \n 110.4 \n 92.3 \n 25.4 \n 21.3 \n 85.9 \n 12.5 \n 799.4 \n Special mention \n 3.8 \n 5.0 \n - \n 14.4 \n - \n - \n - \n - \n 23.2 \n Substandard \n 10.7 \n 0.1 \n 0.2 \n 0.3 \n 1.0 \n 0.1 \n 0.2 \n - \n 12.6 \n Doubtful \n - \n 1.3 \n - \n - \n 0.7 \n - \n - \n - \n 2.0 \n Total \n 254.6 \n 217.9 \n 110.6 \n 107.0 \n 27.1 \n 21.4 \n 86.1 \n 12.5 \n 837.2 \n Agricultural real estate: \n Pass \n 100.8 \n 68.5 \n 36.5 \n 104.0 \n 73.7 \n 121.6 \n 19.7 \n - \n 524.8 \n Special mention \n 10.2 \n 10.1 \n 3.4 \n 4.5 \n 8.7 \n 13.8 \n 2.1 \n - \n 52.8 \n Substandard \n 15.9 \n 9.5 \n 6.6 \n 2.9 \n 8.1 \n 7.8 \n - \n 0.6 \n 51.4 \n Total \n 126.9 \n 88.1 \n 46.5 \n 111.4 \n 90.5 \n 143.2 \n 21.8 \n 0.6 \n 629.0 \n Commercial: \n Pass \n 301.3 \n 287.8 \n 228.4 \n 277.2 \n 225.5 \n 260.4 \n 593.3 \n 4.6 \n 2,178.5 \n Special mention \n 6.4 \n 23.7 \n 3.3 \n 1.4 \n 3.2 \n 0.4 \n 52.8 \n 0.2 \n 91.4 \n Substandard \n 9.3 \n 13.4 \n 6.8 \n 14.2 \n 4.7 \n 0.7 \n 26.2 \n 1.3 \n 76.6 \n Doubtful \n 4.9 \n 1.0 \n 0.5 \n 6.3 \n 0.4 \n - \n - \n - \n 13.1 \n Total \n 321.9 \n 325.9 \n 239.0 \n 299.1 \n 233.8 \n 261.5 \n 672.3 \n 6.1 \n 2,359.6 \n Agricultural: \n Pass \n 80.2 \n 25.0 \n 15.1 \n 25.6 \n 7.5 \n 4.7 \n 277.8 \n 5.6 \n 441.5 \n Special mention \n 7.9 \n 1.4 \n 2.7 \n 2.0 \n 0.4 \n - \n 26.0 \n - \n 40.4 \n Substandard \n 3.3 \n 3.6 \n 0.8 \n 0.8 \n - \n 0.4 \n 9.6 \n 1.0 \n 19.5 \n Doubtful \n 6.2 \n - \n 2.6 \n - \n - \n - \n 2.0 \n 8.0 \n 18.8 \n Total \n $ \n 97.6 \n $ \n 30.0 \n $ \n 21.2 \n $ \n 28.4 \n $ \n 7.9 \n $ \n 5.1 \n $ \n 315.4 \n $ \n 14.6 \n $ \n 520.2 21 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) The Company evaluates the credit quality, loan performance, and the allowance for credit losses of its residential and consumer loan portfolios based primarily on the aging status of the loan and borrower payment activity. Accordingly, loans on non-accrual status and loans past due 90 days or more and still accruing interest are considered nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of these loan portfolios based on the credit risk profile of loans that are performing and loans that are nonperforming by origination year using the origination date or the loan's subsequent renewal or modification date as of the periods ended: Term Loans Amortized Cost Basis by Origination Year \n As of March 31, 2026 \n 2026 \n 2025 \n 2024 \n 2023 \n 2022 \n Prior \n Revolving Loans Amortized Cost Basis \n Revolving Loans Converted To Term \n Total \n Residential: \n Performing \n $ \n 9.9 \n $ \n 55.2 \n $ \n 39.2 \n $ \n 69.0 \n $ \n 386.8 \n $ \n 1,014.6 \n $ \n 489.4 \n $ \n 6.5 \n $ \n 2,070.6 \n Nonperforming \n - \n 0.7 \n 0.9 \n 1.3 \n 4.2 \n 6.6 \n - \n - \n 13.7 \n Total \n 9.9 \n 55.9 \n 40.1 \n 70.3 \n 391.0 \n 1,021.2 \n 489.4 \n 6.5 \n 2,084.3 \n Consumer indirect: \n Performing \n 1.2 \n 26.5 \n 149.0 \n 64.4 \n 89.7 \n 84.1 \n - \n - \n 414.9 \n Nonperforming \n - \n 0.7 \n 1.2 \n 0.9 \n 0.7 \n 1.0 \n - \n - \n 4.5 \n Total \n 1.2 \n 27.2 \n 150.2 \n 65.3 \n 90.4 \n 85.1 \n - \n - \n 419.4 \n Consumer direct and advance lines: \n Performing \n 13.0 \n 40.6 \n 22.0 \n 11.3 \n 8.1 \n 9.0 \n 23.1 \n 0.2 \n 127.3 \n Nonperforming \n - \n 0.1 \n 0.2 \n 0.1 \n 0.1 \n 0.2 \n - \n - \n 0.7 \n Total \n $ \n 13.0 \n $ \n 40.7 \n $ \n 22.2 \n $ \n 11.4 \n $ \n 8.2 \n $ \n 9.2 \n $ \n 23.1 \n $ \n 0.2 \n $ \n 128.0 \n Term Loans Amortized Cost Basis by Origination Year \n As of December 31, 2025 \n 2025 \n 2024 \n 2023 \n 2022 \n 2021 \n Prior \n Revolving Loans Amortized Cost Basis \n Revolving Loans Converted To Term \n Total \n Residential: \n Performing \n $ \n 45.6 \n $ \n 35.5 \n $ \n 71.5 \n $ \n 394.6 \n $ \n 449.2 \n $ \n 596.8 \n $ \n 494.2 \n $ \n 7.4 \n $ \n 2,094.8 \n Nonperforming \n 0.4 \n 1.1 \n 1.0 \n 4.4 \n 2.2 \n 4.8 \n 0.1 \n - \n 14.0 \n Total \n 46.0 \n 36.6 \n 72.5 \n 399.0 \n 451.4 \n 601.6 \n 494.3 \n 7.4 \n 2,108.8 \n Consumer indirect: \n Performing \n 30.8 \n 169.6 \n 74.5 \n 102.1 \n 39.9 \n 54.9 \n - \n - \n 471.8 \n Nonperforming \n 0.7 \n 1.4 \n 1.2 \n 1.0 \n 0.6 \n 0.8 \n - \n - \n 5.7 \n Total \n 31.5 \n 171.0 \n 75.7 \n 103.1 \n 40.5 \n 55.7 \n - \n - \n 477.5 \n Consumer direct and advance lines: \n Performing \n 47.7 \n 25.6 \n 13.3 \n 9.9 \n 5.3 \n 5.0 \n 23.9 \n 0.1 \n 130.8 \n Nonperforming \n 0.1 \n 0.2 \n 0.1 \n 0.1 \n - \n 0.1 \n - \n 0.1 \n 0.7 \n Total \n $ \n 47.8 \n $ \n 25.8 \n $ \n 13.4 \n $ \n 10.0 \n $ \n 5.3 \n $ \n 5.1 \n $ \n 23.9 \n $ \n 0.2 \n $ \n 131.5 22 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) The following table summarizes the current-period gross charge-offs by class of receivable and portfolio segment as of the dates indicated: Term Loans Amortized Cost Basis by Origination Year \n As of March 31, 2026 \n 2026 \n 2025 \n 2024 \n 2023 \n 2022 \n Prior \n Revolving Loans Amortized Cost Basis \n Total \n Real estate: \n Residential \n $ \n - \n $ \n - \n $ \n 0.1 \n $ \n 0.2 \n $ \n 0.2 \n $ \n - \n $ \n - \n $ \n 0.5 \n Total real estate \n - \n - \n 0.1 \n 0.2 \n 0.2 \n - \n - \n 0.5 \n Consumer: \n Indirect \n - \n 0.5 \n 0.8 \n 0.4 \n 0.5 \n 0.5 \n - \n 2.7 \n Direct and advance lines \n - \n 0.2 \n 0.2 \n 0.2 \n - \n 0.5 \n - \n 1.1 \n Total consumer \n - \n 0.7 \n 1.0 \n 0.6 \n 0.5 \n 1.0 \n - \n 3.8 \n Commercial \n - \n 0.3 \n 0.7 \n 0.4 \n 0.1 \n - \n 0.7 \n 2.2 \n Total current-period gross charge-offs \n $ \n - \n $ \n 1.0 \n $ \n 1.8 \n $ \n 1.2 \n $ \n 0.8 \n $ \n 1.0 \n $ \n 0.7 \n $ \n 6.5 \n Term Loans Amortized Cost Basis by Origination Year \n As of December 31, 2025 \n 2025 \n 2024 \n 2023 \n 2022 \n 2021 \n Prior \n Revolving Loans Amortized Cost Basis \n Revolving Loans Converted To Term \n Total \n Real estate: \n Commercial \n $ \n - \n $ \n 0.4 \n $ \n 0.1 \n $ \n 16.2 \n $ \n 5.1 \n $ \n 0.2 \n $ \n - \n $ \n - \n $ \n 22.0 \n Residential \n 0.1 \n 0.5 \n 0.1 \n 0.4 \n 0.2 \n 0.1 \n - \n - \n 1.4 \n Agricultural \n - \n - \n 0.2 \n - \n - \n - \n - \n - \n 0.2 \n Total real estate \n 0.1 \n 0.9 \n 0.4 \n 16.6 \n 5.3 \n 0.3 \n - \n - \n 23.6 \n Consumer: \n Indirect \n 0.6 \n 2.4 \n 2.4 \n 2.4 \n 0.8 \n 1.0 \n - \n - \n 9.6 \n Direct and advance lines \n 0.4 \n 1.2 \n 0.6 \n 0.2 \n 0.1 \n 1.9 \n - \n - \n 4.4 \n Credit card \n - \n - \n - \n - \n - \n - \n 3.5 \n - \n 3.5 \n Total consumer \n 1.0 \n 3.6 \n 3.0 \n 2.6 \n 0.9 \n 2.9 \n 3.5 \n - \n 17.5 \n Commercial \n 0.7 \n 1.0 \n 2.5 \n 1.3 \n 0.3 \n 0.4 \n 2.5 \n 0.2 \n 8.9 \n Agricultural \n 2.0 \n 2.9 \n - \n - \n - \n - \n 0.1 \n - \n 5.0 \n Total current-period gross charge-offs \n $ \n 3.8 \n $ \n 8.4 \n $ \n 5.9 \n $ \n 20.5 \n $ \n 6.5 \n $ \n 3.6 \n $ \n 6.1 \n $ \n 0.2 \n $ \n 55.0 In the normal course of business, there were no material purchases of portfolio loans and no material sales of loans held for investment during the three months ended March 31, 2026 or 2025. \n (5) DERIVATIVES AND HEDGING ACTIVITIES \n The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through the management of its business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and derivative financial instruments. The Company enters into derivative financial instruments, such as interest rate swap contracts to manage or hedge exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates and interest rate exposures. The Company does not enter into interest rate swap agreements for trading or speculative purposes. \n 23 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) The Company sells residential mortgage loans on either a best efforts or mandatory delivery basis. The Company mitigates the effect of the interest rate risk inherent in providing interest rate lock commitments by entering into forward loan sales contracts. The forward loan sales contracts are recorded at fair value with changes in fair value recorded through earnings and are not designated as accounting hedges. Exclusive of the fair value component associated with the projected cash flows from the loan delivery to the investor, the changes in fair value related to movements in market rates of the interest rate lock commitments and the forward loan sales contracts generally move in opposite directions, and the net impact of changes in these valuations on net income during the loan commitment period is generally inconsequential. When the loan is funded to the borrower, the interest rate lock commitment expires, and the Company records a loan held for sale. The forward loan sales contract acts as a hedge against movements in the market interest rates from the time the Company enters into the interest rate lock commitment. The changes in measurement of the estimated fair values of the interest rate lock commitments and forward loan sales contracts are included in mortgage banking revenues in the accompanying consolidated statements of income. The Company charges a fee for these transactions, which is included in mortgage banking revenues on the consolidated statements of income which were not material for the periods ended March 31, 2026 and 2025. \n The Company also enters into derivative contracts related to transactions in which the Company enters into an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with a third-party financial institution. Because the Company acts as an intermediary for the client, changes in the fair value of the underlying derivative contracts primarily offset each other and do not significantly impact the Company's results of operations. The Company charges a fee for these transactions, which is included in other service charges, commissions, and fees on the consolidated statements of income which were not material for the periods ended March 31, 2026 and 2025. \n Cash Flow Hedges of Interest Rate Risk \n The Company's objectives in using interest rate derivatives are to add stability to interest income (expense) and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps and collars as part of its interest rate risk management strategy. \n As of March 31, 2026, the Company does not have any active interest rate derivatives designated as cash flow hedges. The Company continues to monitor its interest rate risk exposure and may enter into new derivative contracts in the future as part of its ongoing risk management activities. \n Fair Value Hedges of Interest Rate Risk \n The Company is exposed to changes in the fair value of fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements. \n For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. As of March 31, 2026, the Company does not have any active derivatives designated as fair value hedges. \n Derivatives Not Designated as Accounting Hedges \n Derivative instruments not designated as accounting hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously economically hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized in other income. \n 24 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) Risk Participation Agreements \n The Company acquired, from Great Western Bank, risk participation agreements under which it assumed credit risk associated with a borrower's performance related to derivative contracts. The Company only entered into these credit risk participation agreements in instances in which the Company was also a party to the related loan participation agreements for such borrowers. The Company manages its credit risk under risk participation agreements by monitoring the creditworthiness of the borrower, based on its normal credit review process. \n The following table summarizes the fair values of our derivative instruments on a gross and net basis for the periods indicated. The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements, but after the variation margin payments with central clearing organizations have been applied as settlement, as applicable. Total derivative assets and liabilities are adjusted to account for the impact of legally enforceable master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Securities collateral related to legally enforceable master netting agreements is not offset on the consolidated balance sheets. March 31, 2026 \n December 31, 2025 \n Notional Amount \n Consolidated Balance Sheet Location \n Estimated \n Fair Value \n Notional Amount \n Consolidated Balance Sheet Location \n Estimated \n Fair Value \n Derivatives not designated as accounting hedges: \n Interest rate swap contracts \n $ \n 1,126.0 \n $ \n 27.0 \n $ \n 1,199.0 \n $ \n 26.6 \n Interest rate lock commitments \n 6.5 \n 0.1 \n 1.0 \n - \n Forward loan sales contracts \n 8.3 \n - \n 1.0 \n - \n Derivative assets \n $ \n 1,140.8 \n Other assets \n $ \n 27.1 \n $ \n 1,201.0 \n Other assets \n $ \n 26.6 \n Derivatives not designated as accounting hedges: \n Interest rate swap contracts \n $ \n 1,126.0 \n $ \n 76.8 \n $ \n 1,204.9 \n $ \n 77.3 \n Risk participation agreements \n 63.3 \n - \n 64.6 \n - \n Derivative liabilities \n $ \n 1,189.3 \n Accounts payable and accrued expenses \n $ \n 76.8 \n $ \n 1,269.5 \n Accounts payable and accrued expenses \n $ \n 77.3 There was no unrealized fair value gain or loss on cash flow hedging derivative instruments recognized in other comprehensive income during the three months ended March 31, 2026, and an unrealized fair value loss on cash flow hedging derivative instruments recognized in other comprehensive income of $1.0 million for the three months ended March 31, 2025. All derivatives are carried at fair value in either other assets or other liabilities and all related cash flows are reported in the operating section of the consolidated statements of cash flows. \n 25 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) The tables below present the gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of the dates indicated: March 31, 2026 \n Gross Assets Recognized \n Gross Assets Offset in the Balance Sheet \n Net Assets in the Balance Sheet \n Financial Instruments Cash Collateral Received (1) Net Amount \n Interest rate swap and collar contracts \n $ \n 27.0 \n $ \n - \n $ \n 27.0 \n $ \n - \n $ \n 27.0 \n $ \n - \n Interest rate lock commitments \n 0.1 \n - \n 0.1 \n - \n - \n 0.1 \n Total derivatives \n 27.1 \n - \n 27.1 \n - \n 27.0 \n 0.1 \n Total assets \n $ \n 27.1 \n $ \n - \n $ \n 27.1 \n $ \n - \n $ \n 27.0 \n $ \n 0.1 (1) Netting adjustments represent the amounts recorded to convert derivatives assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The application of the collateral cannot reduce the net derivative position below zero. Therefore, excess collateral, if any, is not reflected above. Gross Liabilities Recognized \n Gross Liabilities Offset in the Balance Sheet \n Net Liabilities in the Balance Sheet \n Financial Instruments \n Cash Collateral Posted \n Net Amount \n Interest rate swap and collar contracts \n $ \n 76.8 \n $ \n - \n $ \n 76.8 \n $ \n - \n $ \n - \n $ \n 76.8 \n Total derivatives \n 76.8 \n - \n 76.8 \n - \n - \n 76.8 Repurchase agreements (2) 476.1 \n - \n 476.1 \n - \n - \n 476.1 \n Total liabilities \n $ \n 552.9 \n $ \n - \n $ \n 552.9 \n $ \n - \n $ \n - \n $ \n 552.9 (2) Repurchase agreements are fully collateralized by investment securities. December 31, 2025 \n Gross Assets Recognized \n Gross Assets Offset in the Balance Sheet \n Net Assets in the Balance Sheet \n Financial Instruments Cash Collateral Received (1) Net Amount \n Interest rate swap and collar contracts \n $ \n 26.6 \n $ \n - \n $ \n 26.6 \n $ \n - \n $ \n 26.4 \n $ \n 0.2 \n Total derivatives \n 26.6 \n - \n 26.6 \n - \n 26.4 \n 0.2 \n Total assets \n $ \n 26.6 \n $ \n - \n $ \n 26.6 \n $ \n - \n $ \n 26.4 \n $ \n 0.2 (1) Netting adjustments represent the amounts recorded to convert derivatives assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The application of the collateral cannot reduce the net derivative position below zero. Therefore, excess collateral, if any, is not reflected above. Gross Liabilities Recognized \n Gross Liabilities Offset in the Balance Sheet \n Net Liabilities in the Balance Sheet \n Financial Instruments \n Cash Collateral Posted \n Net Amount \n Interest rate swap and collar contracts \n $ \n 77.3 \n $ \n - \n $ \n 77.3 \n $ \n - \n $ \n - \n $ \n 77.3 \n Total derivatives \n 77.3 \n - \n 77.3 \n - \n - \n 77.3 Repurchase agreements (2) 479.6 \n - \n 479.6 \n - \n - \n 479.6 \n Total liabilities \n $ \n 556.9 \n $ \n - \n $ \n 556.9 \n $ \n - \n $ \n - \n $ \n 556.9 (2) Repurchase agreements are fully collateralized by investment securities. \n Credit-risk-related Contingent Feature \n The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. In addition, the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. \n 26 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well / adequately capitalized institution, then the counterparty could terminate the derivative positions and the Bank would be required to settle its obligations. Similarly, the Bank could be required to settle its obligations under certain of its agreements if specific regulatory events occur, such as a publicly issued prompt corrective action directive, cease and desist order, or a capital maintenance agreement that required the Bank to maintain a specific capital level. If the Bank had breached any of these provisions at March 31, 2026 or December 31, 2025 it could have been required to settle its obligations under the agreements at the termination value. \n As of March 31, 2026 and December 31, 2025, the fair value of derivatives in a net liability position that have contingent features described above was zero. As of March 31, 2026 and December 31, 2025, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has not posted excess collateral. At March 31, 2026 and December 31, 2025, the Company had not breached any of the settlement acceleration provisions. \n (6) CAPITAL STOCK \n The Company's common stock is traded on the NASDAQ stock market under the symbol \"FIBK.\" \n As of March 31, 2026, the Company is authorized to issue an aggregate of 150,100,000 shares of capital stock, of which 150,000,000 shares are designated as common stock, and 100,000 are designated as preferred stock. Our common stock is uncertificated and has one vote per share. \n The Company had 97,446,230 shares and 101,105,745 shares of common stock outstanding as of March 31, 2026 and December 31, 2025, respectively, and no shares of preferred stock outstanding as of March 31, 2026 and December 31, 2025. \n On August 28, 2025, the board of directors of the Company adopted a new stock repurchase program, pursuant to which the Company has been authorized to repurchase up to $150.0 million of its issued and outstanding shares of common stock on or prior to March 31, 2027, which is the expiration date of the program. On January 27, 2026, the board of directors authorized an increase to the repurchase program of an additional $150.0 million, or a total of $300.0 million since August 2025. Any repurchased shares will be returned to authorized but unissued shares of common stock, as permitted under applicable Delaware law. \n During the three months ended March 31, 2026, 2,392,893 shares of common stock were repurchased under the stock repurchase program at a total cost of $84.0 million or at a weighted average price of $35.09 per share. As of March 31, 2026, following these repurchases, approximately $98.4 million remained available for future purchases under the program. The additional stock repurchases during the three months ended March 31, 2026 and 2025, were redemptions of vested restricted shares tendered in lieu of cash for payment of income tax withholding amounts by participants in the Company's equity compensation plans. \n (7) EARNINGS PER COMMON SHARE \n Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period presented, excluding unvested restricted stock. Diluted earnings per share is calculated by dividing net income by the weighted average number of common shares determined for the basic earnings per share computation plus the dilutive effects of stock-based compensation using the treasury stock method. \n 27 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) The following table sets forth the computation of basic and diluted earnings per share for the periods presented: Three Months Ended March 31, \n 2026 \n 2025 \n Net income \n $ \n 60.2 \n $ \n 50.2 Weighted average common shares outstanding for basic earnings per share computation 98,880,749 \n 103,092,225 Dilutive effects of stock-based compensation 360,292 \n 323,762 Weighted average common shares outstanding for diluted earnings per common share computation 99,241,041 \n 103,415,987 \n Basic earnings per common share \n $ \n 0.61 \n $ \n 0.49 \n Diluted earnings per common share \n 0.61 \n 0.49 \n Anti-dilutive unvested time restricted stock \n 2,713 \n 20,395 The Company had 528,756 and 828,874 shares of unvested restricted stock as of March 31, 2026 and 2025, respectively, that were not included in the computation of diluted earnings per common share because performance conditions for vesting had not been met. \n (8) REGULATORY CAPITAL \n As of March 31, 2026 and December 31, 2025, the Company exceeded all capital adequacy requirements to which it is subject. Actual capital amounts and ratios for the Company and its subsidiary Bank, as of March 31, 2026 and December 31, 2025 are presented in the following tables: Actual \n Minimum Required for Capital Adequacy Purposes For Capital Adequacy Purposes Plus Capital Conservation Buffer (1) \n Minimum to Be Well Capitalized Under Prompt Corrective Action Requirements (2) March 31, 2026 \n Amount \n Ratio \n Amount \n Ratio \n Amount \n Ratio \n Amount \n Ratio \n Total risk-based capital: \n Consolidated \n $ \n 2,912.7 \n 17.07 \n % \n $ \n 1,365.4 \n 8.00 \n % \n $ \n 1,792.1 \n 10.50 \n % \n $ \n 1,706.8 \n 10.00 \n % \n FIB \n 2,577.7 \n 15.14 \n 1,362.2 \n 8.00 \n 1,787.9 \n 10.50 \n 1,702.7 \n 10.00 \n Tier 1 risk-based capital: \n Consolidated \n 2,440.8 \n 14.30 \n 1,024.1 \n 6.00 \n 1,450.8 \n 8.50 \n 1,365.4 \n 8.00 \n FIB \n 2,375.6 \n 13.95 \n 1,021.6 \n 6.00 \n 1,447.3 \n 8.50 \n 1,362.2 \n 8.00 \n Common equity tier 1 risk-based capital: \n Consolidated \n 2,440.8 \n 14.30 \n 768.0 \n 4.50 \n 1,194.7 \n 7.00 \n 1,109.4 \n 6.50 \n FIB \n 2,375.6 \n 13.95 \n 766.2 \n 4.50 \n 1,191.9 \n 7.00 \n 1,106.8 \n 6.50 \n Leverage capital ratio: \n Consolidated \n 2,440.8 \n 9.56 \n 1,021.3 \n 4.00 \n 1,021.3 \n 4.00 \n 1,276.6 \n 5.00 \n FIB \n 2,375.6 \n 9.32 \n 1,019.1 \n 4.00 \n 1,019.1 \n 4.00 \n 1,273.9 \n 5.00 28 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) \n Actual \n Minimum Required for Capital Adequacy Purposes For Capital Adequacy Purposes Plus Capital Conservation Buffer (1) \n Minimum to Be Well Capitalized Under Prompt Corrective Action Requirements (2) December 31, 2025 \n Amount \n Ratio \n Amount \n Ratio \n Amount \n Ratio \n Amount \n Ratio \n Total risk-based capital: \n Consolidated \n $ \n 2,976.5 \n 17.06 \n % \n $ \n 1,396.1 \n 8.00 \n % \n $ \n 1,832.3 \n 10.50 \n % \n $ \n 1,745.1 \n 10.00 \n % \n FIB \n 2,656.6 \n 15.26 \n 1,392.3 \n 8.00 \n 1,827.4 \n 10.50 \n 1,740.4 \n 10.00 \n Tier 1 risk-based capital: \n Consolidated \n 2,508.8 \n 14.38 \n 1,047.1 \n 6.00 \n 1,483.3 \n 8.50 \n 1,396.1 \n 8.00 \n FIB \n 2,458.8 \n 14.13 \n 1,044.2 \n 6.00 \n 1,479.3 \n 8.50 \n 1,392.3 \n 8.00 \n Common equity tier 1 risk-based capital: \n Consolidated \n 2,508.8 \n 14.38 \n 785.3 \n 4.50 \n 1,221.6 \n 7.00 \n 1,134.3 \n 6.50 \n FIB \n 2,458.8 \n 14.13 \n 783.2 \n 4.50 \n 1,218.3 \n 7.00 \n 1,131.3 \n 6.50 \n Leverage capital ratio: \n Consolidated \n 2,508.8 \n 9.61 \n 1,043.7 \n 4.00 \n 1,043.7 \n 4.00 \n 1,304.7 \n 5.00 \n FIB \n 2,458.8 \n 9.44 \n 1,041.6 \n 4.00 \n 1,041.6 \n 4.00 \n 1,302.0 \n 5.00 (1) The capital conservation buffer is an additional 2.5% of the amount necessary to meet the minimum risk-based capital requirements for total, tier 1, and common equity tier 1 risk-based capital. \n (2) The ratios to meet the requirements to be deemed \"well-capitalized\" are only applicable to FIB. However, the Company manages its capital position as if the requirements apply to the consolidated company and has presented the ratios as if they also applied on a consolidated basis. \n (9) COMMITMENTS AND CONTINGENCIES \n In the normal course of business, the Company is involved in various claims and litigation. The Company establishes accruals for legal matters when potential losses associated with the actions become probable and the amount of loss can be reasonably estimated. There is no assurance that the ultimate resolution of these matters will not significantly exceed the amounts that the Company has accrued. Accruals for legal matters are based on management's best judgment after consultation with counsel and others. In the opinion of management, following consultation with legal counsel, the ultimate liability or disposition of all such claims and litigation is not expected to have a material adverse effect on the consolidated financial condition, results of operations, or liquidity of the Company. \n As of March 31, 2026, the Company had commitments under construction contracts of $1.2 million. \n Based on the specific terms stated in the agreements, the Company did not have a significant amount of sold residential mortgage loans with recourse provisions still in effect as of March 31, 2026. The Company did not repurchase a significant amount of loans from secondary market investors under the terms of loan sales agreements during the period ended March 31, 2026. In the opinion of management, the risk of recourse and the subsequent requirement of loan repurchase to the Company is not significant, and accordingly no liabilities have been established related to such. In addition, the Company made various representations and warranties associated with the sale of loans. The Company has not incurred significant losses resulting from these provisions during the period ended March 31, 2026. \n 29 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) (10) FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK \n In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk to meet the financing needs of its clients. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of amounts recorded in the consolidated balance sheets. Commitments to extend credit are agreements to lend to a client so long as there is no violation of any condition established in the commitment contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third party. The credit risk involved in issuing letters of credit is essentially the same as the credit risk involved in extending loan facilities to clients. The Company's policy for obtaining collateral, and determining the nature of such collateral, is essentially the same as in the Company's policies for making commitments to extend credit. The estimated fair value of the obligation undertaken by the Company in issuing standby letters of credit is included in accounts payable and accrued expenses in the Company's consolidated balance sheets. \n The following table presents our financial instruments with off-balance sheet risk, as well as the activity in the allowance for off-balance sheet credit losses related to those financial instruments: Three Months Ended March 31, \n 2026 \n 2025 \n Beginning balance \n $ \n 5.9 \n $ \n 5.2 \n Provision for (reduction of) credit loss expense \n (0.1) \n (0.1) \n Ending balance \n $ \n 5.8 \n $ \n 5.1 \n March 31, 2026 \n December 31, 2025 \n Commitments to extend credit \n $ \n 2,550.1 \n $ \n 2,638.8 \n Standby letters of credit \n 60.1 \n 60.4 (11) OTHER COMPREHENSIVE INCOME \n The gross amounts of each component of other comprehensive loss and the related tax effects for the periods indicated are as follows: Pre-tax \n Tax (Expense) Benefit \n Net of Tax \n Three Months Ended March 31, \n 2026 \n 2025 \n 2026 \n 2025 \n 2026 \n 2025 \n Investment securities available-for sale: \n (Increase) decrease in unrealized losses during the period \n $ \n (23.5) \n $ \n 70.7 \n $ \n 5.8 \n $ \n (17.7) \n $ \n (17.7) \n $ \n 53.0 \n Net change in unamortized gains on available-for-sale securities transferred into held-to-maturity \n 0.1 \n - \n - \n - \n 0.1 \n - \n Cash flow hedge: \n Change in unrealized gains on derivatives \n - \n 1.0 \n - \n (0.3) \n - \n 0.7 \n Reclassification adjustment for derivatives net losses included in net income \n - \n 1.0 \n - \n (0.3) \n - \n 0.7 \n Total other comprehensive (loss) income \n $ \n (23.4) \n $ \n 72.7 \n $ \n 5.8 \n $ \n (18.3) \n $ \n (17.6) \n $ \n 54.4 The components of accumulated other comprehensive loss, net of related tax effects, are as follows: March 31, 2026 \n December 31, 2025 \n Net unrealized loss on investment securities available-for-sale \n $ \n (190.3) \n $ \n (172.6) \n Net unrealized loss on investment securities transferred to held-to-maturity \n (5.6) \n (5.7) \n Net unrealized gain on derivatives \n 0.2 \n 0.2 \n Net accumulated other comprehensive loss \n $ \n (195.7) \n $ \n (178.1) 30 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) (12) FAIR VALUE MEASUREMENTS \n Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. \n The three levels of inputs to measure fair value are as follows: \n • Level 1 - Quoted prices in active markets for identical assets or liabilities \n • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities \n • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities \n The methodologies used by the Company in determining the fair values of each class of financial instruments are based primarily on independent, market-based data to reflect a value that would be reasonably expected in an orderly transaction between market participants at the measurement date, and therefore, are classified within Level 2 of the valuation hierarchy. There have been no significant changes in the valuation techniques during the three months ended March 31, 2026 and 2025. \n The Company's policy is to recognize transfers between levels as of the end of the reporting period. Transfers in and out of Level 1, Level 2, and Level 3 are recognized on the actual transfer date. There were no significant transfers between fair value hierarchy levels during the three months ended March 31, 2026 and 2025. \n Further details on the methods used to estimate the fair value of each class of financial instruments above are discussed below: \n Investment Debt Securities Available-for-Sale . The Company obtains fair value measurements for investment securities from an independent pricing service, and these securities are classified as level 2. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the investment's terms and conditions, among others. Vendors chosen by the Company are widely recognized vendors whose evaluations support the pricing functions of financial institutions, investment and mutual funds, and portfolio managers. If needed, a broker may be utilized to determine the reported fair value of investment securities. The Company also compares the reasonableness of the pricing quarterly through a validation process involving additional independent third parties. \n Loans Held for Sale. Fair value measurements for residential mortgage loans held for sale are obtained from an independent pricing service and are classified as level 2. The fair value measurements consider observable data that may include binding contracts or quotes or bids from third party investors as well as loan level pricing adjustments. Other loans held for sale are derived from quotes or bids from third party investors. \n Interest Rate Swap Contracts. Fair values for derivative interest rate swap contracts are obtained from an independent third party and are classified as level 2. The values are based upon the estimated amounts to settle the contracts considering current interest rates and are calculated using discounted cash flows that are observable, or that can be corroborated by observable market data. The inputs used to determine fair value include the United States Dollar - Secured Overnight Financing Rate (\"SOFR\") and Prime forward curves to estimate variable rate cash inflows and SOFR to estimate the discount rate. The estimated variable rate cash inflows are compared to the fixed rate outflows and such difference is discounted to a present value to estimate the fair value of the interest rate swaps. The Company also compares the reasonableness of the pricing quarterly through a validation process involving additional independent third parties. \n For purposes of potential valuation adjustments to our derivative positions, we evaluate both our credit risk and the credit risk of our counterparties. Accordingly, we have considered factors such as the likelihood of our default and the default of our counterparties, our net exposures and remaining contractual life, among other things, in determining if any fair value adjustments related to credit risk are required. The change in value of derivative assets and derivative liabilities attributable to credit risk was not significant during the reported periods. \n 31 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) Interest Rate Lock Commitments. Fair value measurements for interest rate lock commitments are obtained from an independent pricing service and are classified as level 2. The fair value measurements consider observable data that may include prices available from secondary market investors taking into consideration various characteristics of the loan, including the loan amount, interest rate, value of the servicing, and loan to value ratio, among other things. Observable data is then adjusted to reflect changes in interest rates, the Company's estimated pull-through rate, and estimated direct costs necessary to complete the commitment into a closed loan net of origination, and processing fees collected from the borrower. \n Forward Loan Sales Contracts. The fair value measurements for forward loan sales contracts are obtained from an independent pricing service and are classified as level 2. The fair value measurements consider observable data that includes sales of similar loans. \n Deferred Compensation Plan Assets and Liabilities. The fair values of deferred compensation plan assets and liabilities are based primarily on quoted market prices for identical instruments traded in active markets at the measurement date and are classified as level 1. These investments are in the same funds and purchased in the same amounts as the participants' selected investments, which represent the underlying liabilities to plan participants. Deferred compensation plan liabilities are recorded at amounts due to participants, based on the fair value of participants' selected investments. \n Financial assets and financial liabilities measured at fair value on a recurring basis are as follows: Fair Value Measurements at Reporting Date Using \n As of March 31, 2026 \n Fair Value \n Quoted Prices in \n Active Markets for \n Identical Assets \n (Level 1) \n Significant Other \n Observable \n Inputs \n (Level 2) \n Significant \n Unobservable \n Inputs \n (Level 3) \n Investment debt securities available-for-sale: \n U.S. Treasury notes \n $ \n 237.5 \n $ \n - \n $ \n 237.5 \n $ \n - \n State, county, and municipal securities \n 217.1 \n - \n 217.1 \n - \n Obligations of U.S. government agencies \n 175.9 \n - \n 175.9 \n - \n U.S. agency commercial mortgage-backed securities \n 839.9 \n - \n 839.9 \n - \n U.S. agency residential mortgage-backed securities \n 2,223.1 \n - \n 2,223.1 \n - \n U.S. agency collateralized mortgage obligations \n 880.9 \n - \n 880.9 \n - \n Private mortgage-backed securities \n 168.5 \n - \n 168.5 \n - \n Collateralized loan obligations \n 833.4 \n - \n 833.4 \n - \n Corporate securities \n 140.3 \n - \n 140.3 \n - \n Loans held for sale \n 4.7 \n - \n 4.7 \n - \n Derivative assets: \n Interest rate swap contracts \n 27.0 \n - \n 27.0 \n - \n Derivative liabilities: \n Interest rate swap contracts \n 76.8 \n - \n 76.8 \n - \n Deferred compensation plan assets \n 21.4 \n 21.4 \n - \n - 32 Table of Contents \n FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES \n NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS \n (Dollars in millions, except share and per share data) \n Fair Value Measurements at Reporting Date Using \n As of December 31, 2025 \n Fair Value \n Quoted Prices in \n Active Markets for \n Identical Assets \n (Level 1) \n Significant Other \n Observable \n Inputs \n (Level 2) \n Significant \n Unobservable \n Inputs \n (Level 3) \n Investment debt securities available-for-sale: \n U.S. Treasury notes \n $ \n 237.7 \n $ \n - \n $ \n 237.7 \n $ \n - \n State, county and municipal securities \n 220.1 \n - \n 220.1 \n - \n Obligations of U.S. government agencies \n 200.9 \n - \n 200.9 \n - \n U.S. agency commercial mortgage-backed securities \n 856.7 \n - \n 856.7 \n - \n U.S. agency residential mortgage-backed securities \n 1,770.1 \n - \n 1,770.1 \n - \n U.S. agency collateralized mortgage obligations \n 922.7 \n - \n 922.7 \n - \n Private mortgage-backed securities \n 174.4 \n - \n 174.4 \n - \n Collateralized loan obligations \n 755.5 \n - \n 755.5 \n - \n Corporate securities \n 150.0 \n - \n 150.0 \n - \n Loans held for sale \n 1.1 \n - \n 1.1 \n - \n Derivative assets: \n Interest rate swap contracts \n 26.6 \n - \n 26.6 \n - \n Derivative liabilities \n Interest rate swap contracts \n 77.3 \n - \n 77.3 \n - \n Deferred compensation plan assets \n 23.2 \n 23.2 \n - \n - Additionally, from time to time, certain assets are measured at fair value on a non-recurring basis. Adjustments to fair value generally result from the application of lower-of-cost-or-market accounting or write-downs of individual assets due to credit deterioration. The following table presents information about the Company's assets and liabilities measured at fair value on a non-recurring basis with an adjustment during the period presented. The fair values may not be current as of the reporting date but represent fair values as of the most recent fair value change that occurred with the reporting period. Accordingly, carrying values may not equal the current fair value: As of March 31, 2026 \n Fair Value \n Quoted Prices in Active Markets for Identical Assets (Level 1) \n Significant Othe...

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