Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income tax expense consists of the following:


Year ended December 31,	2025		2024		2023
Current:
Federal	$	61.5	$	38.1	$	46.1
State	17.0		9.7		12.8
Total current	78.5		47.8		58.9
Deferred:
Federal	9.0		17.8		16.0
State	2.1		2.9		4.4
Total deferred	11.1		20.7		20.4

Total income tax expense	$	89.6	$	68.5	$	79.3

Schedule of Effective Income Tax Rate Reconciliation

Total income tax provision differs from the amount of income tax determined by applying the statutory federal income tax rate of 21% for the periods presented to income before income taxes due to the following:


Year Ended December 31, 2025	Amount(1)		Percent
Tax expense at the statutory tax rate	$	82.3	21.0	%
State income tax, net of federal income tax benefit(2)	15.1		3.9
Federal tax credits(3)	(2.2)		(0.3)
Nontaxable or nondeductible items:
Tax-exempt interest income, net	(4.2)		(1.1)
Bank owned life insurance income	(3.3)		(0.8)
Other, net(4)	3.3		0.8
Other adjustments	(1.4)		(0.5)
Tax expense at effective tax rate	$	89.6	23.0	%

(1) Reflects prospective adoption of ASU 2023-09

(2) State taxes in Montana, Oregon, and South Dakota made up the majority (greater than 50%) of the tax effect in this category.

(3) Company has adopted proportional amortization for new markets, historic, and low income housing tax credits. Therefore, the tax credits category includes the tax credit, net of the proportional amortization.

(4) Includes nondeductible expenses, shortfalls, and windfalls


Year ended December 31,	2024			2023
Tax expense at the statutory tax rate		$	61.9		$	70.7
Increase (decrease) in tax resulting from:
Tax-exempt income		(7.4)			(8.1)
State income tax, net of federal income tax benefit		10.0			13.6
Deficiency (benefit) of stock-based compensation plans		0.6			0.3
Federal tax credits		(0.3)			(0.2)
FDIC premiums		2.5			2.0
Other, net		1.2			1.0
Tax expense at effective tax rate		$	68.5		$	79.3

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of the net deferred tax asset (liability) relate to the following:


December 31,	2025		2024
Deferred tax assets:
Loans, principally due to allowance for credit losses	$	47.7	$	50.7
Loan discount	7.0		11.5
Investment securities, unrealized losses	59.3		106.1
Derivatives, unrealized losses	—		0.8
Deferred compensation	20.3		22.5
Non-performing loan interest	3.2		2.5


Net operating loss carryforwards (1)	0.6		1.0
Lease liabilities	8.1		8.9
Other reserves	6.0		7.2
Contract incentives	5.3		6.4
Discount on acquired investment securities	3.6		6.8



Other	3.4		4.3
Deferred tax assets	164.5		228.7
Deferred tax liabilities:
Fixed assets, principally differences in bases and depreciation	(17.3)		(20.6)
Deferred loan costs	(2.8)		(3.2)

Derivatives, unrealized gains	(0.1)		—
Investment in joint venture partnership, principally due to differences in depreciation of partnership assets	(1.6)		(0.8)
Right of use assets	(7.5)		(8.2)
Prepaid amounts	(0.6)		(0.8)
Government agency stock dividends	(1.2)		(1.2)
Goodwill and other intangibles	(67.6)		(68.6)
Mortgage servicing rights	(5.8)		(6.4)
Other	(0.4)		(0.5)
Deferred tax liabilities	(104.9)		(110.3)
Net deferred tax assets	$	59.6	$	118.4

(1) As of December 31, 2025, the Company had remaining federal net operating loss carryforwards of $1.7 million from acquired companies, which is available to offset federal taxable income, and state net operating loss carryforwards in Idaho. The federal net operating losses will expire in 2030 and the state net operating losses of $10.4 million began expiring in 2023 and ending in 2036. The use of these carryforwards is subject to annual limitations. The Company believes it is more likely than not that these items will be utilized within the carryforward period.

Cash Taxes Paid


Cash Taxes Paid in the Current Period
Year ended December 31,	2025
Federal	$	29.5
State
Montana	4.0


Other	3.1
Total	$	36.6