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Long-Term Debt and Other Borrowed Funds
 12 Months Ended
Dec. 31, 2025
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 31,20252024
Parent Company:  
Fixed to floating subordinated notes, 5.25% fixed rate effective May 2020 through May 14, 2025. Effective May 15, 2025, floating Three-Month Term Secured Overnight Financing Rate plus 518.0 basis points.
$— $99.1 
Fixed to floating subordinated notes, 7.625% fixed rate effective June 2025 through June 2030
122.3 — 
Subsidiaries:  
0.00% FHLB borrowings maturing in August 2029
3.9 3.9 
8.00% finance lease obligation with term ending October 31, 2029
0.6 0.8 
3.90% finance lease obligation with term ending July 31, 2030
0.1 — 
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 
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 
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 
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 12.6 
Total long-term debt$146.3 $132.2 
Maturities of long-term debt at December 31, 2025 were as follows:
2026$0.1 
20270.2 
20280.2 
20294.1 
2030— 
Thereafter141.7 
Total$146.3 
On August 15, 2025, the Company redeemed in full the outstanding $100.0 million of aggregate principal amount of 5.25% fixed-to-floating rate subordinated notes due 2030 (the “2020 Subordinated Notes”) set forth in the table above without any prepayment penalty, at a redemption price of 100% of the principal amount plus accrued and unpaid interest to, but excluding, August 15, 2025.
On June 10, 2025, the Company completed a public offering of $125.0 million fixed-to-floating rate subordinated notes due June 15, 2035 (the “Notes”). 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 June 15, 2030 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 governing the Notes. Any early redemption of the Notes will be subject to regulatory approval to the extent then required under applicable laws or regulations, including capital regulations.
From and including the date of issuance to, but excluding, June 15, 2030, or earlier redemption date, the Notes will bear interest at an initial fixed rate of 7.625% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2025. From and including June 15, 2030 to, but excluding, June 15, 2035, 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 indenture governing the Notes), plus 398.0 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on September 15, 2030. Notwithstanding the foregoing, if the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero.
Unamortized debt issuance costs of $2.7 million, as of December 31, 2025, 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 issuance of the Notes were used to redeem the 2020 Subordinated Notes and for general corporate purposes.
At December 31, 2025, the Company had $3.9 million in 5-year FHLB borrowings at 0.00%, maturing in August 2029.
The Company has financing lease obligations on a banking office and equipment. Assets acquired under the financing lease on the banking office consist of a building and leasehold improvements. The banking office and equipment financing leases are included in premises and equipment subject to depreciation.
Additionally, the Company borrowed or assumed through acquisitions $19.4 million and $28.4 million as of December 31, 2025 and 2024, 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, 2025, the Company had no outstanding short-term FHLB borrowings as compared to $1,567.5 million of outstanding FHLB fixed rate borrowings at an average rate of 4.77% at December 31, 2024. As of December 31, 2025 and December 31, 2024, the Company had no other material outstanding borrowings classified as other borrowed funds.
At December 31, 2025, the Company has remaining available lines of credit with the FHLB of approximately $5,402.7 million, subject to collateral availability. The available line of credit and outstanding borrowings with the FHLB are collateralized by certain loans with an advance equivalent collateral value of $5,406.6 million.
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 $3,585.5 million secured by a blanket pledge of investment securities and agricultural and commercial loans.