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Long-Term Debt and Other Borrowed Funds
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Long-Term Debt and Other Borrowed Funds LONG-TERM DEBT AND OTHER BORROWED FUNDS
A summary of long-term debt follows:
December 31,20242023
Parent Company:  
Fixed to floating subordinated notes, 5.25% fixed rate effective May 2020 through May 2025
$99.1 $99.0 
Subsidiaries:  
0.00% FHLB borrowings maturing in August 2029
3.9 — 
8.00% finance lease obligation with term ending October 31, 2029
0.8 0.9 
1.00% note payable maturing December 31, 2041, interest only payable quarterly until September 30, 2024 and then principal and interest until maturity
— 5.1 
Note payable maturing March 31, 2038, interest only payable at 1.30% monthly until March 31, 2025 and then principal and interest at 3.25% until maturity
2.0 2.0 
1.30% note payable maturing June 1, 2034, interest only payable monthly until March 31, 2025 and then principal and interest until maturity
0.6 0.6 
1.12% note payable maturing December 31, 2045, interest only payable annually until December 31, 2028 and then principal and interest until maturity
6.8 6.8 
1.35% note payable maturing December 31, 2046 interest only payable annually until December 31, 2025 and then principal and interest until maturity
6.4 6.4 
1.26% note payable maturing December 31, 2051 interest only payable annually until December 31, 2031 and then principal and interest until maturity
12.6 — 
Total long-term debt$132.2 $120.8 
Maturities of long-term debt at December 31, 2024 were as follows:
2025$0.1 
20260.1 
20270.2 
20280.2 
20294.1 
Thereafter127.5 
Total$132.2 
On May 15, 2020, the Company completed a public offering of $100.0 million fixed-to-floating rate subordinated notes due May 15, 2030 (the “Notes”). The debt is included in Tier 2 capital for the Company. The Company may elect to redeem the Notes, in whole or in part, on any early redemption date which is any interest payment date on or after May 15, 2025 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. The Company may also redeem the Notes, in whole but not in part, upon certain conditions as defined in the indenture agreement. Any early redemption of the Notes will be subject to regulatory approval.
From and including the date of issuance to, but excluding, May 15, 2025, or earlier redemption date, the Notes bear interest at an initial fixed rate of 5.25% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, which commenced on November 15, 2020. From and including May 15, 2025 to, but excluding, May 15, 2025, or earlier redemption date, the Notes will bear interest at a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term Secured Overnight Financing Rate (“SOFR”) (as defined in the First Supplemental Indenture Agreement), plus 518.0 basis points, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, commencing on August 15, 2025.
Unamortized debt issuance costs of $0.9 million, as of December 31, 2024, are being amortized to maturity. Subordinated debt is presented net of issuance costs on the consolidated balance sheet.
The Notes are unsecured, subordinated obligations of the Company and: (i) rank junior to all of the Company’s existing and future senior indebtedness; (ii) rank equal in right of payment with any of the Company’s existing and future subordinated indebtedness; (iii) rank senior to the Company’s obligations relating to any junior subordinated debt securities issued to its capital trust subsidiaries; (iv) are effectively subordinated to all of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and (v) are structurally subordinated to all of the existing and future liabilities and obligations of the Company’s subsidiaries, including deposit liabilities and claims of other creditors of the Company’s bank subsidiary, First Interstate Bank.
Proceeds from the private placement of subordinated notes were used for general corporate purposes.
At December 31, 2024, the Company had $3.9 million in 5-year FHLB borrowings with a 1-year lockout at 0.00%, maturing in August 2029.
The Company has a financing lease obligation on a banking office. Assets acquired under the financing lease, consist solely of a building and leasehold improvements, and are included in premises and equipment subject to depreciation.
Additionally, the Company borrowed or assumed through acquisitions $28.4 million and $20.9 million as of December 31, 2024 and 2023, respectively, related to New Market Tax Credits that the Company is required to consolidate through its controlling interest in variable interest entity investments. The long-term debt obligations consist of fixed rate note payables with various interest rates from 1.00% to 3.25% and maturities from June 1, 2034 through December 31, 2051, collateralized by the Company’s equity interest in various CDEs, which are 99.9% owned by the Company.
At December 31, 2024, the Company had $1,567.5 million in outstanding FHLB borrowings with remaining tenors of up to twelve-months at an average rate of 4.77%, as compared to $2,603.0 million of outstanding FHLB fixed rate borrowings with tenors of up to three-months at an average rate of 5.52% at December 31, 2023. As of December 31, 2024 and December 31, 2023, the Company had no other material outstanding borrowings classified as other borrowed funds.
At December 31, 2024, the Company has remaining available lines of credit with the FHLB of approximately $4,371.4 million, subject to collateral availability. The available line of credit and outstanding borrowings with the FHLB are collateralized by certain loans and securities with an advance equivalent collateral value of $5,942.8 million.
The following table presents outstanding FHLB borrowings by original maturity classification for the dates indicated:
As of December 31, 2024Average RateOutstanding Balance
Fixed rate borrowings with tenors of up to twelve-months4.78 1,317.5 
Fixed rate borrowings with tenors over twelve-months4.72 250.0 
$1,567.5 
As of December 31, 2023RateOutstanding Balance
Fixed rate borrowings with tenors of up to three-months5.52 $2,603.0 
$2,603.0 
The Company has unused federal fund lines of credit with third parties amounting to $235.0 million, subject to funds availability. These lines are subject to cancellation without notice. The Company also has an unused line of credit with the FRB for borrowings up to $1,813.6 million secured by a blanket pledge of agricultural and commercial loans and has an unused $50.0 million revolving line of credit with another third party.