First Interstate BancSystem, Inc.

At this time, all lines are in listen-only mode. And following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, October 30, 2025. I would now like to turn the conference call over to Ms. Nancy Vermelin. Please go ahead.

Thank you very much. Good morning. Thank you for joining us for our third quarter earnings conference call. As we begin, please note that the information provided during this call will contain forward-looking statements. Actual results or outcomes might differ materially from those expressed by those statements. I'd like to direct all listeners to read the cautionary notes regarding forward-looking statements contained in our most recent annual report on Form 10-K filed with the SEC and in our earnings release, as well as the risk factors identified in the annual report and our more recent periodic reports filed with the SEC. Relevant factors that could cause actual results to differ materially from any forward-looking statements are included in the earnings release and in our SEC filings. The company does not undertake to update any of the forward-looking statements made today. A copy of our earnings release, which contains non-GAAP financial measures, is available on our website at fibk.com. Information regarding our use of the non-GAAP financial measures may be found in the body of the earnings release, and a reconciliation to their most directly comparable GAAP financial measures is included at the end of the earnings release for your reference. Again this quarter, along with our earnings release, we have published an updated investor presentation that has additional disclosures that we believe will be helpful. The presentation can be accessed on our investor relations website, and if you have not downloaded a copy yet, we encourage you to do so. Please also note that as we discuss our financials today, unless otherwise noted, all of the prior period comparisons will be with the second quarter of 2025. Joining us for management this morning are Jim Reuter, our Chief Executive Officer, David de la Camera, our Chief Financial Officer, and other members of our management team. Now I'll turn the call over to Jim Reuter. Jim?

Thank you, Nancy, and good morning, everyone, and thank you for joining us on our call today. This continues to be an exciting and busy time at First Interstate. Last quarter, I opened the call by stating our three ongoing priorities, which are refocusing our capital investment, optimizing our balance sheet and improving core profitability. We continued executing on those initiatives in the third quarter, and in August we announced a share repurchase authorization and are actively executing under that plan. As we've discussed in prior calls, We are continuing to perform our state-by-state review across the footprint. One of our goals is improving density in areas where we have strong market share and growth potential, which should improve our return on capital over time and drive long-term shareholder value. As part of this effort, we closed on the previously announced divestiture of our branches in Arizona and Kansas on October 10th and announced the sale of 11 branches in Nebraska the following week. We also will be closing four branches in eastern Nebraska in the first quarter of 2026 to optimize our branch network in those markets. As we look to future growth, we continue to make investments in the franchise, including smaller actions like opening another location in Billings, Montana in early 2026 and adding talent in markets where we see growth opportunities. We look forward to continuing to share incremental progress over coming quarters. Looking at the Nebraska transaction announced on October 16th, the 11 branches involved in the sale comprise a total of roughly $280 million in deposits and about $70 million in associated loans. We were pleased to find a partner whose business strategy fits those locations well. We view this as a positive outcome for our customers, employees, and shareholders. We anticipate this transaction closing at the beginning of the second quarter of 2026 pending required approvals. Altogether, these optimizations further improve density across the footprint, while also further streamlining our operations and increasing our average branch size. We remain focused on organic growth as a driver of long-term shareholder value. Our approach will focus on growing full relationships in a disciplined manner. The combination of our strategic actions and slower-than-expected recent growth has resulted in increasing capital ratios, which we are actively managing to enhance long-term shareholder value. David will cover this in more detail. Now we'd like to spend a moment discussing our recent balance sheet trends. Some of the decline in loan balances is due to intentional refocusing of our production to ensure consistent credit quality and to drive stability and long-term performance. This includes the actions we previously communicated, such as the discontinuation of indirect lending originations, the intentional runoff of some non-relationship loans, and the outsourcing of our consumer credit card product. With that said, production has been weaker than we anticipated over the past couple of quarters. We believe there are a few factors driving this. First, we have seen increased competition for certain deals, with some instances of structures we were unwilling to match and in recent months increased pricing competition. While organic growth will always be the top priority, we will do so in a disciplined way to drive long-term stability in our credit and financial results. Second, demand for real estate lending remains muted and new construction activity is soft. Finally, while activity is picking up, expected production is below replacement levels today, in light of known and expected payoff activity. This informs our view of a decline in loan balances in the fourth quarter, which is included in our guidance. This includes some criticized and larger loan payoffs anticipated in the fourth quarter. On the subject of credit, we were pleased to see credit quality stabilize in the third quarter. We believe our proactive approach to credit risk management, disciplined underwriting standards on new production, as well as lack of exposure to national non-traditional lending positions us well. Non-performing assets decreased $11.9 million, or 6%, to $185.6 million as of September 30, 2025, from $197.5 million as of June 30. Net charge-offs decreased $3.5 million in the third quarter, or 60% to $2.3 million. Our largest criticized loan, which totaled just over $50 million, paid off in full at the beginning of October, providing a positive start to the fourth quarter results. Following this payoff, we now have only two customers with balances over $50 million, both of which are pass-rated credits. Credit risk management is an ongoing process within a bank, and while we won't be providing a specific forecast for criticized loan levels over time, We believe our proactive approach to credit risk management puts us in a good position to continue managing lost content while resolving individual credits. We are optimistic that we will see continued improvement in reported credit levels from here. As noted, our charge off activity in the third quarter was very muted at six basis points. We maintain our long term charge off guidance of 20 to 30 basis points, noting that charge off activity can fluctuate on a quarterly basis. With that, I will now hand the call order to David to discuss the results in more detail.