• Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended June 30, 2022

    Source: Nasdaq GlobeNewswire / 21 Jul 2022 15:30:02   America/Chicago

    2nd Quarter 2022 Highlights:

    • Net income was $76.4 million for the current quarter, an increase of $8.6 million, or 13 percent, from the prior quarter net income of $67.8 million.
    • The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, grew $714 million, or 21 percent annualized, in the current quarter.
    • Net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.23 percent compared to 3.20 percent in the prior quarter. The core net interest margin for the current quarter of 3.16 percent, increased 9 basis points from 3.07 percent in the prior quarter.
    • Net interest income, on a tax-equivalent basis, was $199 million in the current quarter which increased $8.6 million, or 5 percent, over the prior quarter net interest income of $190 million.
    • Core deposits increased $85.5 million, or 2 percent annualized, during the current quarter.
    • Non-interest bearing deposits increased $71.3 million, or 4 percent, annualized during the current quarter.
    • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 149 consecutive quarterly dividends and has increased the dividend 49 times.

    First Half 2022 Highlights:

    • The loan portfolio, excluding the PPP loans, organically grew $1.121 billion, or 17 percent annualized, in the first half of 2022.
    • Net interest income, on a tax-equivalent basis, was $389 million in the first half of 2022. Excluding the PPP loans, net interest income was $384 million which increased $86.8 million, or 29 percent, over the prior year first half net interest income of $298 million.
    • Core deposits increased $468 million, or 4 percent annualized, during the first six months of 2022.
    • Dividends declared in the first half of 2022 of $0.66 per share, an increase of $0.03 per share, or 5 percent, over the prior year dividends of $0.63.

    Financial Summary  

      At or for the Three Months ended At or for the Six Months ended
    (Dollars in thousands, except per share and market data) Jun 30,
    2022    		 Mar 31,
    2022    		 Jun 30,
    2021    		 Jun 30,
    2022    		 Jun 30,
    2021
    Operating results          
    Net income $76,392  67,795  77,627  144,187  158,429 
    Basic earnings per share $0.69  0.61  0.81  1.30  1.66 
    Diluted earnings per share $0.69  0.61  0.81  1.30  1.66 
    Dividends declared per share $0.33  0.33  0.32  0.66  0.63 
    Market value per share          
    Closing $47.42  50.28  55.08  47.42  55.08 
    High $51.40  60.69  63.05  60.69  67.35 
    Low $44.43  49.61  52.99  44.43  44.55 
    Selected ratios and other data          
    Number of common stock shares outstanding  110,766,287  110,763,316  95,507,234  110,766,287  95,507,234 
    Average outstanding shares - basic  110,765,379  110,724,655  95,505,877  110,745,017  95,485,839 
    Average outstanding shares - diluted  110,794,982  110,800,001  95,580,904  110,799,368  95,565,591 
    Return on average assets (annualized)  1.16% 1.06% 1.55% 1.11% 1.64%
    Return on average equity (annualized)  10.55% 8.97% 13.25% 9.76% 13.68%
    Efficiency ratio  55.74% 57.11% 49.92% 56.42% 48.31%
    Dividend payout  47.83% 54.10% 39.51% 50.77% 37.95%
    Loan to deposit ratio  66.26% 63.52% 67.64% 66.26% 67.64%
    Number of full time equivalent employees  3,439  3,439  2,987  3,439  2,987 
    Number of locations  224  223  194  224  194 
    Number of ATMs  274  273  250  274  250 
                     

    KALISPELL, Mont., July 21, 2022 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $76.4 million for the current quarter, a decrease of $1.2 million, or 2 percent, from the $77.6 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.69 per share, a decrease of 15 percent from the prior year second quarter diluted earnings per share of $0.81. The $1.2 million decrease in second quarter earnings over the prior year second quarter was driven primarily by a $11.1 million decrease in gain on the sale of residential loans, a $10.3 million decrease in the PPP related income, an increase of $4.1 million of provision for credit loss, and a $976 thousand increase in acquisition-related expenses. For the quarter, the Company experienced a $38.0 million increase, or 24 percent, in net interest income and a $29.4 million increase, or 29 percent, in non-interest expense over the prior year second quarter which was driven by the acquisition of Altabancorp and its Altabank subsidiary (“Alta”). “We were very pleased to see the high quality loan and deposit growth we achieved this quarter,” said Randy Chesler, President and Chief Executive Officer. “We remain prepared to manage through economic headwinds if the economy experiences a recession and are confident in the long term resiliency of our markets and our core business.”

    Net income for the six month ended June 30, 2022 was $144.2 million, a decrease of $14.2 million, or 9 percent, from the $158.4 million net income for the first six months in the prior year. Diluted earnings per share for the first half of 2022 was $1.30 per share, a decrease of 22 percent from the prior year first half earnings per share of $1.66. The $14.2 million decrease in net income over the prior year first half was driven primarily by a $25.7 million decrease in the PPP related income, a $23.7 million decrease in gain on the sale of residential loans, an increase of $11.1 million of provision for credit loss, and a $7.1 million increase in acquisition-related expenses.

    Asset Summary

              $ Change from
    (Dollars in thousands) Jun 30,
    2022    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021
    Cash and cash equivalents $415,406  436,805  437,686  921,207  (21,399) (22,280) (505,801)
    Debt securities, available-for-sale  6,209,199  6,535,763  9,170,849  6,147,143  (326,564) (2,961,650) 62,056 
    Debt securities, held-to-maturity  3,788,486  3,576,941  1,199,164  1,024,730  211,545  2,589,322  2,763,756 
    Total debt securities  9,997,685  10,112,704  10,370,013  7,171,873  (115,019) (372,328) 2,825,812 
    Loans receivable              
    Residential real estate  1,261,119  1,125,648  1,051,883  734,838  135,471  209,236  526,281 
    Commercial real estate  9,310,070  8,865,585  8,630,831  6,584,322  444,485  679,239  2,725,748 
    Other commercial  2,685,392  2,661,048  2,664,190  2,932,419  24,344  21,202  (247,027)
    Home equity  773,582  715,963  736,288  648,800  57,619  37,294  124,782 
    Other consumer  369,592  362,775  348,839  337,669  6,817  20,753  31,923 
    Loans receivable  14,399,755  13,731,019  13,432,031  11,238,048  668,736  967,724  3,161,707 
    Allowance for credit losses  (172,963) (176,159) (172,665) (151,448) 3,196  (298) (21,515)
    Loans receivable, net  14,226,792  13,554,860  13,259,366  11,086,600  671,932  967,426  3,140,192 
    Other assets  2,050,122  1,995,955  1,873,580  1,308,353  54,167  176,542  741,769 
    Total assets $26,690,005  26,100,324  25,940,645  20,488,033  589,681  749,360  6,201,972 
     

    Total debt securities of $9.998 billion at June 30, 2022 decreased $115 million, or 1 percent, during the current quarter and increased $2.826 billion, or 39 percent, from the prior year second quarter. Debt securities represented 37 percent of total assets at June 30, 2022 compared to 40 percent at December 31, 2021 and 35 percent of total assets at June 30, 2021.

    The loan portfolio of $14.400 billion at June 30, 2022 increased $669 million, or 5 percent, in the current quarter and increased $3.162 billion, or 28 percent, from the prior year second quarter. Excluding the PPP loans, the loan portfolio increased $714 million, or 21 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $444 million, or 20 percent annualized. Excluding the PPP loans and loans from the acquisition of Alta, the loan portfolio increased $1.950 billion, or 19 percent, from the prior year second quarter with the largest dollar increase in commercial real estate loans which increased $1.323 billion, or 20 percent.

    The Company received $44.5 million in PPP loan forgiveness during the current quarter. As of June 30, 2022, the Company had $15.7 million of PPP loans remaining. In the current quarter, the Company recognized $1.6 million of interest income (including deferred fees and costs) from the PPP loans. The income recognized in the current quarter included $1.4 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of the PPP loans at June 30, 2022 was $416 thousand, which will be recognized into interest income over the remaining life of the loans or when the loans are forgiven in whole or in part by the SBA.

    Credit Quality Summary

      At or for the Six
    Months ended    		 At or for the
    Three Months
    ended    		 At or for the
    Year ended    		 At or for the Six
    Months ended
    (Dollars in thousands) Jun 30,
    2022    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021
    Allowance for credit losses        
    Balance at beginning of period $172,665  172,665  158,243  158,243 
    Acquisitions  —  —  371  — 
    Provision for credit losses  2,991  4,344  16,380  (5,234)
    Charge-offs  (7,040) (2,695) (11,594) (5,946)
    Recoveries  4,347  1,845  9,265  4,385 
    Balance at end of period $172,963  176,159  172,665  151,448 
    Provision for credit losses        
    Loan portfolio $2,991  4,344  16,380  (5,234)
    Unfunded loan commitments  2,507  2,687  6,696  (371)
    Total provision for credit losses $5,498  7,031  23,076  (5,605)
    Other real estate owned $—  —  —  705 
    Other foreclosed assets  379  43  18  66 
    Accruing loans 90 days or more past due  5,064  4,510  17,141  4,220 
    Non-accrual loans  38,523  57,923  50,532  48,050 
    Total non-performing assets $43,966  62,476  67,691  53,041 
    Non-performing assets as a percentage of subsidiary assets  0.16% 0.24% 0.26% 0.26%
    Allowance for credit losses as a percentage of non-performing loans  393% 282% 255% 290%
    Allowance for credit losses as a percentage of total loans  1.20% 1.28% 1.29% 1.35%
    Net charge-offs as a percentage of total loans  0.02% 0.01% 0.02% 0.01%
    Accruing loans 30-89 days past due $16,588  16,080  50,566  12,076 
    Accruing troubled debt restructurings $33,859  33,702  34,591  37,667 
    Non-accrual troubled debt restructurings $2,427  2,501  2,627  3,179 
    U.S. government guarantees included in non-performing assets $5,888  5,068  4,028  4,186 
                  

    Non-performing assets of $44.0 million at June 30, 2022 decreased $18.5 million, or 30 percent, over the prior quarter and decreased $9.1 million, or 17 percent, over prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2022 was 0.16 percent compared to 0.24 percent in the prior quarter and 0.26 percent in the prior year second quarter.

    Early stage delinquencies (accruing loans 30-89 days past due) of $16.6 million at June 30, 2022 increased $508 thousand from the prior quarter and increased $4.5 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2022 was 12 basis points, which compared to 12 basis points in the prior quarter and 11 basis points from prior year second quarter.

    The current quarter credit loss benefit of $1.5 million included $1.4 million of credit loss benefit from loans and $179 thousand of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at June 30, 2022 was 1.20 percent which was an 8 basis point decrease compared to the prior quarter and a 15 basis points decrease from the prior year second quarter.

    Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio

    (Dollars in thousands) Provision for
    Credit Losses
    Loans    		 Net Charge-Offs
    (Recoveries)    		 ACL
    as a Percent
    of Loans    		 Accruing
    Loans 30-89
    Days Past Due
    as a Percent of
    Loans    		 Non-Performing
    Assets to
    Total Subsidiary
    Assets
    Second quarter 2022 $(1,353) $1,843  1.20% 0.12% 0.16%
    First quarter 2022  4,344   850  1.28% 0.12% 0.24%
    Fourth quarter 2021  19,301   616  1.29% 0.38% 0.26%
    Third quarter 2021  2,313   152  1.36% 0.23% 0.24%
    Second quarter 2021  (5,723)  (725) 1.35% 0.11% 0.26%
    First quarter 2021  489   2,286  1.39% 0.40% 0.19%
    Fourth quarter 2020  (1,528)  4,781  1.42% 0.20% 0.19%
    Third quarter 2020  2,869   826  1.42% 0.15% 0.25%
                      

    The current quarter provision for credit loss benefit for loans was $1.4 million which was a decrease of $5.7 million from the prior quarter which was driven by the continued improvement in the credit quality and the Company’s increased comfort with the economic forecasts. Current quarter provision for credit loss benefit for loans decreased $4.3 million from the prior year second quarter provision for credit loss benefit of $5.7 million.

    Net charge-offs for the current quarter were $1.8 million compared to $850 thousand for the prior quarter and recoveries of $725 thousand from the same quarter last year. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

    Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on regulatory classification is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.

    Liability Summary

              $ Change from
    (Dollars in thousands) Jun 30,
    2022    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021
    Deposits              
    Non-interest bearing deposits $8,061,304 7,990,003 7,779,288 6,307,794 71,301  282,016  1,753,510 
    NOW and DDA accounts  5,432,333 5,376,881 5,301,832 4,151,264 55,452  130,501  1,281,069 
    Savings accounts  3,296,561 3,287,521 3,180,046 2,346,129 9,040  116,515  950,432 
    Money market deposit accounts  4,021,102 4,044,655 4,014,128 2,990,021 (23,553) 6,974  1,031,081 
    Certificate accounts  968,382 995,147 1,036,077 939,563 (26,765) (67,695) 28,819 
    Core deposits, total  21,779,682 21,694,207 21,311,371 16,734,771 85,475  468,311  5,044,911 
    Wholesale deposits  4,001 3,688 25,878 26,121 313  (21,877) (22,120)
    Deposits, total  21,783,683 21,697,895 21,337,249 16,760,892 85,788  446,434  5,022,791 
    Repurchase agreements  968,197 958,479 1,020,794 995,201 9,718  (52,597) (27,004)
    Federal Home Loan Bank advances  580,000 80,000 — — 500,000  580,000  580,000 
    Other borrowed funds  66,200 57,258 44,094 33,556 8,942  22,106  32,644 
    Subordinated debentures  132,701 132,661 132,620 132,540 40  81  161 
    Other liabilities  262,985 239,838 228,266 211,889 23,147  34,719  51,096 
    Total liabilities $23,793,766 23,166,131 22,763,023 18,134,078 627,635  1,030,743  5,659,688 
     

    Core deposits of $21.780 billion increased $85.5 million, or 2 percent annualized, during the current quarter and non-interest bearing deposits increased $71.3 million, or 4 percent annualized, during the current quarter. Excluding the Alta acquisition, core deposits increased $1.771 billion, or 11 percent, from the prior year second quarter. During 2020 and 2021, the Company experienced unprecedented increases in core deposits as a result of increased customer savings and federal stimulus. Non-interest bearing deposits were 37 percent of total core deposits at June 30, 2022 and December 31, 2021 compared to 38 percent at June 30, 2021.

    Federal Home Loan Bank (“FHLB”) advances increased $500 million during the current quarter to support the liquidity needs driven by the increase in the loan portfolio. The FHLB advances will continue to fluctuate to supplement the liquidity needs during the year.

    Stockholders’ Equity Summary

              $ Change from
    (Dollars in thousands, except per share data) Jun 30,
    2022    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021
    Common equity $3,223,451  3,182,002  3,150,263  2,263,513  41,449  73,188  959,938 
    Accumulated other comprehensive (loss) income  (327,212) (247,809) 27,359  90,442  (79,403) (354,571) (417,654)
    Total stockholders’ equity  2,896,239  2,934,193  3,177,622  2,353,955  (37,954) (281,383) 542,284 
    Goodwill and core deposit intangible, net  (1,032,323) (1,034,987) (1,037,652) (564,546) 2,664  5,329  (467,777)
    Tangible stockholders’ equity $1,863,916  1,899,206  2,139,970  1,789,409  (35,290) (276,054) 74,507 


    Stockholders’ equity to total assets  10.85% 11.24% 12.25% 11.49%      
    Tangible stockholders’ equity to total tangible assets  7.26% 7.58% 8.59% 8.98%      
    Book value per common share $26.15  26.49  28.71  24.65  (0.34) (2.56) 1.50 
    Tangible book value per common share $16.83  17.15  19.33  18.74  (0.32) (2.50) (1.91)
                           

    Tangible stockholders’ equity of $1.864 billion at June 30, 2022 decreased $35.3 million, or 2 percent, from the prior quarter which was primarily driven by an increase in the unrealized loss on the available-for-sale (“AFS”) debt securities during the current quarter which was driven by an increase in interest rates. Tangible stockholders’ equity at June 30, 2022 increased $74.5 million, or 4 percent, from the prior year second quarter which largely was the result of $840 million of Company common stock issued for the acquisition of Alta, despite the increase in goodwill and core deposit intangibles associated with the Alta acquisition and an increase in the unrealized loss on the AFS debt securities. Tangible book value per common share of $16.83 at the current quarter end decreased $0.32 per share, or 2 percent, from the prior quarter and decreased $1.91 per share, or 10 percent, from the prior year second quarter primarily as a result of the increase in the unrealized loss on AFS debt securities.

    Cash Dividends
    On June 29, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable July 21, 2022 to shareholders of record on July 12, 2022. The dividend was the Company’s 149th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

    Operating Results for Three Months Ended June 30, 2022 
    Compared to March 31, 2022, and June 30, 2021

    Income Summary

      Three Months ended $ Change from
    (Dollars in thousands) Jun 30,
    2022    		 Mar 31,
    2022    		 Jun 30,
    2021    		 Mar 31,
    2022    		 Jun 30,
    2021
    Net interest income          
    Interest income $199,637  190,516  159,956  9,121  39,681 
    Interest expense  6,199  4,961  4,487  1,238  1,712 
         Total net interest income  193,438  185,555  155,469  7,883  37,969 
    Non-interest income          
    Service charges and other fees  17,309  17,111  13,795  198  3,514 
    Miscellaneous loan fees and charges  3,850  3,555  2,923  295  927 
    Gain on sale of loans  4,996  9,015  16,106  (4,019) (11,110)
    (Loss) Gain on sale of investments  (260) 446  (61) (706) (199)
    Other income  2,385  3,436  2,759  (1,051) (374)
         Total non-interest income  28,280  33,563  35,522  (5,283) (7,242)
         Total income  221,718  219,118  190,991  2,600  30,727 
    Net interest margin (tax-equivalent)  3.23% 3.20% 3.44%    
     

    Net Interest Income
    The current quarter net interest income of $193 million increased $7.9 million, or 4 percent, compared to the prior quarter and increased $38.0 million, or 24 percent, from the prior year second quarter. The current quarter interest income of $200 million increased $9.1 million, or 5 percent, over the prior quarter and was driven by the increase in the loan portfolio and an increase in investment yields, both of which more than offset the decrease of $1.8 million in interest income from the PPP loans. The current quarter interest income increased $39.7 million over the prior year second quarter primarily due to $28.7 million of interest income from Altabank division and organic loan growth, which more than offset the $8.8 million decrease in interest income from the PPP loans.

    The current quarter interest expense of $6.2 million increased $1.2 million, or 25 percent, over the prior quarter and increased $1.7 million, or 38 percent, over the prior year second quarter primarily the result of an increase in borrowings to support the Company’s liquidity needs. Core deposit cost was 6 basis points in the current quarter compared to 7 basis points in the prior quarter and the prior year second quarter. The total cost of funding (including non-interest bearing deposits) was 11 basis points in the current quarter compared to 9 basis points in the prior quarter and 10 basis points in the prior year second quarter which was driven by the increased borrowings.

    The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.23 percent compared to 3.20 percent in the prior quarter and 3.44 percent in the prior year second quarter. The core net interest margin, excluding 4 basis points of discount accretion, 1 basis point from non-accrual interest and 2 basis points increase from the PPP loans, was 3.16 percent compared to 3.07 in the prior quarter and 3.33 percent in the prior year second quarter. The core net interest margin increased 9 basis points in the current quarter as a result of increased core loan yields and investment yields. The core loan yield of 4.41 percent in the current quarter increased 7 basis points from the prior quarter core loan yield of 4.34 percent. “We are pleased with the growth in our net interest income in the current quarter. The Bank divisions remain focused on growing a low-cost core deposit base, especially non-interest bearing deposits, in a rising rate environment,” said Ron Copher, Chief Financial Officer.

    Non-interest Income
    Non-interest income for the current quarter totaled $28.3 million which was a decrease of $5.3 million, or 16 percent, over the prior quarter and a decrease of $7.2 million, or 20 percent, over the same quarter last year with both decreases primarily driven by the decrease in gain on sale of residential loans. Gain on the sale of residential loans of $5.0 million for the current quarter decreased $4.0 million, or 45 percent, compared to the prior quarter and decreased $11.1 million, or 69 percent, from the prior year second quarter. The current quarter mortgage activity was lower than prior periods as a result of the continued reduction in residential purchase and refinance activity as mortgage rates continued to rise.

    Non-interest Expense Summary

      Three Months ended $ Change from
    (Dollars in thousands) Jun 30,
    2022    		 Mar 31,
    2022    		 Jun 30,
    2021    		 Mar 31,
    2022    		 Jun 30,
    2021
    Compensation and employee benefits $79,803 79,074 64,109 729  15,694 
    Occupancy and equipment  10,766 10,964 9,208 (198) 1,558 
    Advertising and promotions  3,766 3,232 2,906 534  860 
    Data processing  7,553 7,475 5,661 78  1,892 
    Other real estate owned and foreclosed
    assets    		  6 — 48 6  (42)
    Regulatory assessments and insurance  3,085 3,055 1,702 30  1,383 
    Core deposit intangibles amortization  2,665 2,664 2,488 1  177 
    Other expenses  21,877 23,844 13,960 (1,967) 7,917 
    Total non-interest expense $129,521 130,308 100,082 (787) 29,439 
     

    Total non-interest expense of $130 million for the current quarter decreased $787 thousand, or 60 basis points, over the prior quarter which was driven by a decrease in acquisition-related expenses during the current quarter. Acquisition-related expenses was $2.1 million in the current quarter compared to $6.2 million in the prior quarter and $1.1 million in the prior year second quarter.

    Total non-interest expense increased $29.4 million, or 29 percent, over the prior year second quarter which was primarily driven by the acquisition of Alta. Excluding $18.3 million of non-interest expense from the Altabank division, $1.5 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $8.7 million, or 9 percent, from the prior year second quarter. The increase includes $5.2 million from compensation and employee benefits driven by the increased number of employees, annual salary increases and a $2.1 million increase in outside service expenses associated with technology infrastructure improvements.

    Federal and State Income Tax Expense
    Tax expense during the second quarter of 2022 was $17.3 million, an increase of $3.4 million, or 24 percent, compared to the prior quarter and a decrease of $1.6 million, or 8 percent, from the prior year second quarter. The effective tax rate in the current quarter was 18.5 percent compared to 17.1 percent in the prior quarter with the increase driven by higher taxable income. The effective tax rate in the current quarter of 18.5 percent compared to 19.6 percent in the prior year second quarter with the decrease in the current quarter attributable to lower taxable income.

    Efficiency Ratio
    The efficiency ratio was 55.74 percent in the current quarter compared to 57.11 percent in the prior quarter and 49.92 in the prior year second quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 54.84 percent in the current quarter compared to 54.33 percent in the prior quarter and 49.37 percent in the prior year second quarter. The increase in the efficiency ratio from the prior year second quarter was driven by the decrease in gain on the sale of residential loans, the decrease in income from the PPP loans and the increase in non-interest expense.

    Operating Results for Six Months Ended June 30, 2022
    Compared to June 30, 2021

    Income Summary

      Six Months ended  
    (Dollars in thousands) Jun 30,
    2022    		 Jun 30,
    2021    		 $ Change % Change
    Net interest income        
    Interest income $390,153  $321,508  $68,645  21%
    Interest expense  11,160   9,227   1,933  21%
         Total net interest income  378,993   312,281   66,712  21%
    Non-interest income        
    Service charges and other fees  34,420   26,587   7,833  29%
    Miscellaneous loan fees and charges  7,405   5,701   1,704  30%
    Gain on sale of loans  14,011   37,730   (23,719) (63)%
    Gain on sale of investments  186   223   (37) (17)%
    Other income  5,821   5,402   419  8%
         Total non-interest income  61,843   75,643   (13,800) (18)%
         Total Income $440,836  $387,924  $52,912  14%
    Net interest margin (tax-equivalent)  3.21%  3.58%    
     

    Net Interest Income
    Net-interest income of $379 million for the first half of 2022 increased $66.7 million, or 21 percent, over the same period in 2021. Interest income of $390 million for the first six months of the current year increased $68.6 million, or 21 percent, from the prior year and was primarily attributable to $58.9 million of interest income from Alta division and organic growth. Interest expense of $11.2 million for the first half of 2022 increased $1.9 million, or 21 percent over the prior year. The total funding cost (including non-interest bearing deposits) for the first six months of 2022 was 10 basis points, which decreased 1 basis point compared to 11 basis points in first six months of 2021.

    The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2022 was 3.21 percent, a 37 basis points decrease from the net interest margin of 3.58 percent for the same period in the prior year. The core net interest margin, excluding 6 basis points of discount accretion, 1 basis point of non-accrual interest and 3 basis points increase from the PPP loans, was 3.11 which was a 32 basis point decrease from the core margin of 3.43 percent in the prior year.

    Non-interest Income
    Non-interest income of $61.8 million for the first half of 2022 decreased $13.8 million, or 18 percent, over the same period last year and was primarily attributable to the $23.7 million, or 63 percent, decrease in gain on sale of residential loans. Service charges and other fees of $34.4 million for the first six months of 2022 increased $7.8 million, or 29 percent, from prior year as a result of additional fees from increased customer accounts, transaction activity and the acquisition of Alta. Miscellaneous loan fees and charges increased $1.7 million, or 30 percent, primarily driven by increases in credit card interchange fees due to increased activity.

    Non-interest Expense Summary

      Six Months ended    
    (Dollars in thousands) Jun 30,
    2022    		 Jun 30,
    2021    		 $ Change % Change
    Compensation and employee benefits $158,877 $126,577 $32,300  26%
    Occupancy and equipment  21,730  18,723  3,007  16%
    Advertising and promotions  6,998  5,277  1,721  33%
    Data processing  15,028  10,867  4,161  38%
    Other real estate owned and foreclosed assets  6  60  (54) (90)%
    Regulatory assessments and insurance  6,140  3,581  2,559  71%
    Core deposit intangibles amortization  5,329  4,976  353  7%
    Other expenses  45,721  26,606  19,115  72%
    Total non-interest expense $259,829 $196,667 $63,162  32%
     

    Total non-interest expense of $260 million for the first half of 2022 increased $63.2 million, or 32 percent, over the prior year first half. Excluding $41.6 million of non-interest expense from the Altabank division, $6.7 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $14.8 million, or 8 percent, from the prior year first half. Excluding the Alta division, compensation and employee benefits increased $13.5 million, or 11 percent, from prior year due to increased number of employees and annual salary increases. Other expenses increased $19.1 million and was primarily driven by expenses related to the Alta division and a $7.1 million increase in acquisition related expenses. Acquisition-related expenses were $8.3 million in the current year compared to $1.2 million in the prior year.

    Provision for Credit Losses 
    The provision for credit loss expense was $5.5 million for the first six months of 2022, including provision for credit loss expense of $3.0 million on the loan portfolio and credit loss expense of $2.5 million on unfunded loan commitments. The provision for credit loss expense of $3.0 million on the loan portfolio in the current year increased $8.2 million over the provision for credit loss benefit of $5.2 million in the prior year which was primarily attributable to organic loan growth. Net charge-offs during the current year were $2.7 million compared to $1.6 million during the prior year.

    Federal and State Income Tax Expense
    Tax expense of $31.3 million in the first six months of 2022 decreased $7.1 million, or 19 percent, over the prior year same period. The effective tax rate for 2022 was 17.8 percent compared to 19.5 percent in the prior year.

    Efficiency Ratio
    The efficiency ratio was 56.42 percent for the first six months of 2022 compared to 48.31 percent for the same period last year. Excluding the impact from the PPP loans and acquisition related expenses, the efficiency ratio was 55.19 in 2022 compared to 52.89 in 2021 with the increase driven by the decrease in gain on the sale of residential loans and the increase in non-interest expense.

    Forward-Looking Statements  
    This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those set forth in this news release:

    • the risks associated with lending and potential adverse changes in the credit quality of loans in the Company’s portfolio;
    • changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin and overall profitability;
    • legislative or regulatory changes, such as the those signaled by the Biden Administration, as well as increased banking and consumer protection regulation, that may adversely affect the Company’s business;
    • ability to complete pending or prospective future acquisitions;
    • costs or difficulties related to the completion and integration of acquisitions;
    • the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
    • reduced demand for banking products and services;
    • the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
    • competition among financial institutions in the Company's markets may increase significantly;
    • the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
    • the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
    • consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
    • dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
    • material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
    • natural disasters, including fires, floods, earthquakes, and other unexpected events;
    • the Company’s success in managing risks involved in the foregoing; and
    • the effects of any reputational damage to the Company resulting from any of the foregoing.

    The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.

    Conference Call Information
    A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, July 22, 2022. The conference call will be accessible by telephone and webcast. Investors who would like to call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BI5ae3db12b0eb47b58e17e4348de70584. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/8mhnune6. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.

    About Glacier Bancorp, Inc.
    Glacier Bancorp, Inc. (NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions located across its eight state Western U.S. footprint: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), North Cascades Bank (Chelan, WA), The Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), and Western Security Bank (Billings, MT).

    Glacier Bancorp, Inc.
    Unaudited Condensed Consolidated Statements of Financial Condition

    (Dollars in thousands, except per share data) Jun 30,
    2022    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021
    Assets        
    Cash on hand and in banks $293,541  282,335  198,087  272,363 
    Interest bearing cash deposits  121,865  154,470  239,599  648,844 
         Cash and cash equivalents  415,406  436,805  437,686  921,207 
    Debt securities, available-for-sale  6,209,199  6,535,763  9,170,849  6,147,143 
    Debt securities, held-to-maturity  3,788,486  3,576,941  1,199,164  1,024,730 
         Total debt securities  9,997,685  10,112,704  10,370,013  7,171,873 
    Loans held for sale, at fair value  33,837  51,284  60,797  98,410 
    Loans receivable  14,399,755  13,731,019  13,432,031  11,238,048 
    Allowance for credit losses  (172,963) (176,159) (172,665) (151,448)
         Loans receivable, net  14,226,792  13,554,860  13,259,366  11,086,600 
    Premises and equipment, net  386,198  373,123  372,597  315,573 
    Other real estate owned and foreclosed assets  379  43  18  771 
    Accrued interest receivable  80,339  81,467  76,673  70,452 
    Deferred tax asset  147,263  120,025  27,693  — 
    Core deposit intangible, net  46,930  49,594  52,259  50,533 
    Goodwill  985,393  985,393  985,393  514,013 
    Non-marketable equity securities  33,215  13,217  10,020  10,019 
    Bank-owned life insurance  168,231  167,298  167,671  123,035 
    Other assets  168,337  154,511  120,459  125,547 
         Total assets $26,690,005  26,100,324  25,940,645  20,488,033 
    Liabilities        
    Non-interest bearing deposits $8,061,304  7,990,003  7,779,288  6,307,794 
    Interest bearing deposits  13,722,379  13,707,892  13,557,961  10,453,098 
    Securities sold under agreements to repurchase  968,197  958,479  1,020,794  995,201 
    FHLB advances  580,000  80,000  —  — 
    Other borrowed funds  66,200  57,258  44,094  33,556 
    Subordinated debentures  132,701  132,661  132,620  132,540 
    Accrued interest payable  2,334  2,284  2,409  2,433 
    Deferred tax liability  —  —  —  6,463 
    Other liabilities  260,651  237,554  225,857  202,993 
         Total liabilities  23,793,766  23,166,131  22,763,023  18,134,078 
    Commitments and Contingent Liabilities        
    Stockholders’ Equity        
    Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding  —  —  —  — 
    Common stock, $0.01 par value per share, 234,000,000 shares authorized  1,108  1,108  1,107  955 
    Paid-in capital  2,341,097  2,339,405  2,338,814  1,496,488 
    Retained earnings - substantially restricted  881,246  841,489  810,342  766,070 
    Accumulated other comprehensive (loss) income  (327,212) (247,809) 27,359  90,442 
         Total stockholders’ equity  2,896,239  2,934,193  3,177,622  2,353,955 
         Total liabilities and stockholders’ equity $26,690,005  26,100,324  25,940,645  20,488,033 
     
     

    Glacier Bancorp, Inc.
    Unaudited Condensed Consolidated Statements of Operations

      Three Months ended Six Months ended
    (Dollars in thousands, except per share data) Jun 30,
    2022    		 Mar 31,
    2022    		 Jun 30,
    2021    		 Jun 30,
    2022    		 Jun 30,
    2021
    Interest Income          
    Debt securities $42,841  38,654 28,730  81,495 56,036 
    Residential real estate loans  13,026  15,515 9,541  28,541 19,687 
    Commercial loans  131,259  124,556 110,829  255,815 224,370 
    Consumer and other loans  12,511  11,791 10,856  24,302 21,415 
         Total interest income  199,637  190,516 159,956  390,153 321,508 
    Interest Expense          
    Deposits  3,141  3,464 2,804  6,605 5,818 
    Securities sold under agreements to
    repurchase    		  367  393 651  760 1,340 
    Federal Home Loan Bank advances  1,298  12 —  1,310 — 
    Other borrowed funds  264  220 177  484 351 
    Subordinated debentures  1,129  872 855  2,001 1,718 
         Total interest expense  6,199  4,961 4,487  11,160 9,227 
    Net Interest Income  193,438  185,555 155,469  378,993 312,281 
    Provision for credit losses  (1,533) 7,031 (5,653) 5,498 (5,605)
         Net interest income after provision for credit losses  194,971  178,524 161,122  373,495 317,886 
    Non-Interest Income          
    Service charges and other fees  17,309  17,111 13,795  34,420 26,587 
    Miscellaneous loan fees and charges  3,850  3,555 2,923  7,405 5,701 
    Gain on sale of loans  4,996  9,015 16,106  14,011 37,730 
    (Loss) Gain on sale of debt securities  (260) 446 (61) 186 223 
    Other income  2,385  3,436 2,759  5,821 5,402 
         Total non-interest income  28,280  33,563 35,522  61,843 75,643 
    Non-Interest Expense          
    Compensation and employee benefits  79,803  79,074 64,109  158,877 126,577 
    Occupancy and equipment  10,766  10,964 9,208  21,730 18,723 
    Advertising and promotions  3,766  3,232 2,906  6,998 5,277 
    Data processing  7,553  7,475 5,661  15,028 10,867 
    Other real estate owned and foreclosed
    assets    		  6  — 48  6 60 
    Regulatory assessments and insurance  3,085  3,055 1,702  6,140 3,581 
    Core deposit intangibles amortization  2,665  2,664 2,488  5,329 4,976 
    Other expenses  21,877  23,844 13,960  45,721 26,606 
         Total non-interest expense  129,521  130,308 100,082  259,829 196,667 
    Income Before Income Taxes  93,730  81,779 96,562  175,509 196,862 
    Federal and state income tax expense  17,338  13,984 18,935  31,322 38,433 
    Net Income $76,392  67,795 77,627  144,187 158,429 
     
     

    Glacier Bancorp, Inc.
    Average Balance Sheets

      Three Months ended
      June 30, 2022 March 31, 2022
    (Dollars in thousands) Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate    		 Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate
    Assets            
    Residential real estate loans $1,229,013  $13,026 4.24% $1,140,224  $15,515 5.44%
    Commercial loans 1  11,712,381   132,799 4.55%  11,318,767   125,919 4.51%
    Consumer and other loans  1,107,396   12,511 4.53%  1,075,102   11,791 4.45%
    Total loans 2  14,048,790   158,336 4.52%  13,534,093   153,225 4.59%
    Tax-exempt debt securities 3  1,979,865   18,413 3.72%  1,723,125   15,664 3.64%
    Taxable debt securities 4  8,685,641   28,473 1.31%  8,883,211   26,465 1.19%
    Total earning assets  24,714,296   205,222 3.33%  24,140,429   195,354 3.28%
    Goodwill and intangibles  1,033,601       1,036,315     
    Non-earning assets  619,671       756,422     
    Total assets $26,367,568      $25,933,166     
    Liabilities            
    Non-interest bearing deposits $7,991,993  $— —% $7,859,706  $— —%
    NOW and DDA accounts  5,405,470   723 0.05%  5,279,984   845 0.06%
    Savings accounts  3,261,798   244 0.03%  3,246,512   332 0.04%
    Money market deposit accounts  3,999,582   1,369 0.14%  4,030,795   1,381 0.14%
    Certificate accounts  982,397   797 0.33%  1,019,595   897 0.36%
    Total core deposits  21,641,240   3,133 0.06%  21,436,592   3,455 0.07%
    Wholesale deposits 5  3,877   8 0.71%  17,191   9 0.22%
    Repurchase agreements  923,459   367 0.16%  970,544   393 0.16%
    FHLB advances  476,978   1,298 1.08%  15,000   12 0.33%
    Subordinated debentures and other borrowed funds  190,072   1,393 2.94%  179,725   1,092 2.46%
    Total funding liabilities  23,235,626   6,199 0.11%  22,619,052   4,961 0.09%
    Other liabilities  235,814       249,316     
    Total liabilities  23,471,440       22,868,368     
    Stockholders’ Equity            
    Common stock  1,108       1,107     
    Paid-in capital  2,340,059       2,338,887     
    Retained earnings  875,276       847,172     
    Accumulated other comprehensive (loss) income  (320,315)      (122,368)    
    Total stockholders’ equity  2,896,128       3,064,798     
      Total liabilities and stockholders’ equity $26,367,568      $25,933,166     
    Net interest income (tax-equivalent)   $199,023     $190,393  
    Net interest spread (tax-equivalent)     3.22%     3.19%
    Net interest margin (tax-equivalent)     3.23%     3.20%

    ______________________________

    1 Includes tax effect of $1.5 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2022 and March 31, 2022, respectively.
    2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
    3 Includes tax effect of $3.8 million and $3.3 million on tax-exempt debt securities income for the three months ended June 30, 2022 and March 31, 2022, respectively.
    4 Includes tax effect of $226 thousand and $225 thousand on federal income tax credits for the three months ended June 30, 2022 and March 31, 2022, respectively.
    5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


    Glacier Bancorp, Inc.
    Average Balance Sheets (continued)

      Three Months ended
      June 30, 2022 June 30, 2021
    (Dollars in thousands) Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate    		 Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate
    Assets            
    Residential real estate loans $1,229,013  $13,026 4.24% $825,467 $9,541 4.62%
    Commercial loans 1  11,712,381   132,799 4.55%  9,520,603  112,226 4.73%
    Consumer and other loans  1,107,396   12,511 4.53%  964,415  10,856 4.51%
    Total loans 2  14,048,790   158,336 4.52%  11,310,485  132,623 4.70%
    Tax-exempt debt securities 3  1,979,865   18,413 3.72%  1,548,323  14,740 3.81%
    Taxable debt securities 4  8,685,641   28,473 1.31%  5,810,800  17,251 1.19%
    Total earning assets  24,714,296   205,222 3.33%  18,669,608  164,614 3.54%
    Goodwill and intangibles  1,033,601       565,749    
    Non-earning assets  619,671       804,897    
    Total assets $26,367,568      $20,040,254    
    Liabilities            
    Non-interest bearing deposits $7,991,993  $— —% $6,100,872 $— —%
    NOW and DDA accounts  5,405,470   723 0.05%  4,073,819  600 0.06%
    Savings accounts  3,261,798   244 0.03%  2,295,334  141 0.02%
    Money market deposit accounts  3,999,582   1,369 0.14%  2,921,642  861 0.12%
    Certificate accounts  982,397   797 0.33%  955,694  1,181 0.50%
    Total core deposits  21,641,240   3,133 0.06%  16,347,361  2,783 0.07%
    Wholesale deposits 5  3,877   8 0.71%  34,301  21 0.24%
    Repurchase agreements  923,459   367 0.16%  974,744  651 0.27%
    FHLB advances  476,978   1,298 1.08%  —  — —%
    Subordinated debentures and other borrowed funds  190,072   1,393 2.94%  166,002  1,032 2.49%
    Total funding liabilities  23,235,626   6,199 0.11%  17,522,408  4,487 0.10%
    Other liabilities  235,814       168,613    
    Total liabilities  23,471,440       17,691,021    
    Stockholders’ Equity            
    Common stock  1,108       955    
    Paid-in capital  2,340,059       1,495,886    
    Retained earnings  875,276       756,561    
    Accumulated other comprehensive (loss) income  (320,315)      95,831    
    Total stockholders’ equity  2,896,128       2,349,233    
    Total liabilities and stockholders’ equity $26,367,568      $20,040,254    
    Net interest income (tax-equivalent)   $199,023     $160,127  
    Net interest spread (tax-equivalent)     3.22%     3.44%
    Net interest margin (tax-equivalent)     3.23%     3.44%

    ______________________________

    1 Includes tax effect of $1.5 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2022 and 2021, respectively.
    2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
    3 Includes tax effect of $3.8 million and $3.0 million on tax-exempt debt securities income for the three months ended June 30, 2022 and 2021, respectively.
    4 Includes tax effect of $226 thousand and $255 thousand on federal income tax credits for the three months ended June 30, 2022 and 2021, respectively.
    5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


    Glacier Bancorp, Inc.
    Average Balance Sheets (continued)

      Six Months ended
      June 30, 2022 June 30, 2021
    (Dollars in thousands) Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate    		 Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate
    Assets            
    Residential real estate loans $1,184,864  $28,541 4.82% $859,073 $19,687 4.58%
    Commercial loans 1  11,516,661   258,718 4.53%  9,466,763  227,154 4.84%
    Consumer and other loans  1,091,338   24,302 4.49%  957,116  21,415 4.51%
    Total loans 2  13,792,863   311,561 4.56%  11,282,952  268,256 4.79%
    Tax-exempt debt securities 3  1,852,204   34,077 3.68%  1,546,912  29,450 3.81%
    Taxable debt securities 4  8,783,881   54,938 1.25%  5,265,398  33,102 1.26%
    Total earning assets  24,428,948   400,576 3.31%  18,095,262  330,808 3.69%
    Goodwill and intangibles  1,034,951       566,979    
    Non-earning assets  687,668       823,973    
    Total assets $26,151,567      $19,486,214    
    Liabilities            
    Non-interest bearing deposits $7,926,215  $— —% $5,847,608 $— —%
    NOW and DDA accounts  5,343,074   1,568 0.06%  3,953,009  1,170 0.06%
    Savings accounts  3,254,197   576 0.04%  2,194,485  279 0.03%
    Money market deposit accounts  4,015,102   2,750 0.14%  2,821,014  1,726 0.12%
    Certificate accounts  1,000,893   1,694 0.34%  963,595  2,603 0.54%
    Total core deposits  21,539,481   6,588 0.06%  15,779,711  5,778 0.07%
    Wholesale deposits 5  10,497   17 0.31%  36,178  40 0.22%
    Repurchase agreements  946,872   760 0.16%  987,995  1,340 0.27%
    FHLB advances  247,265   1,310 1.05%  —  — —%
    Subordinated debentures and other borrowed funds  184,927   2,485 2.71%  165,917  2,069 2.51%
    Total funding liabilities  22,929,042   11,160 0.10%  16,969,801  9,227 0.11%
    Other liabilities  242,528       181,166    
    Total liabilities  23,171,570       17,150,967    
    Stockholders’ Equity            
    Common stock  1,107       955    
    Paid-in capital  2,339,476       1,495,514    
    Retained earnings  861,302       733,478    
    Accumulated other comprehensive income  (221,888)      105,300    
    Total stockholders’ equity  2,979,997       2,335,247    
    Total liabilities and stockholders’ equity $26,151,567      $19,486,214    
    Net interest income (tax-equivalent)   $389,416     $321,581  
    Net interest spread (tax-equivalent)     3.21%     3.58%
    Net interest margin (tax-equivalent)     3.21%     3.58%

    ______________________________

    1 Includes tax effect of $2.9 million and $2.8 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2022 and 2021, respectively.
    2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
    3 Includes tax effect of $7.1 million and $6.0 million on tax-exempt debt securities income for the six months ended June 30, 2022 and 2021, respectively.
    4 Includes tax effect of $451 thousand and $510 thousand on federal income tax credits for the six months ended June 30, 2022 and 2021, respectively.
    5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


    Glacier Bancorp, Inc.
    Loan Portfolio by Regulatory Classification

      Loans Receivable, by Loan Type % Change from
    (Dollars in thousands) Jun 30,
    2022    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021
    Custom and owner occupied construction $282,916  $265,579  $263,758  $158,405  7% 7% 79%
    Pre-sold and spec construction  269,568   258,429   257,568   163,740  4% 5% 65%
    Total residential construction  552,484   524,008   521,326   322,145  5% 6% 72%
    Land development  201,607   180,270   185,200   111,736  12% 9% 80%
    Consumer land or lots  197,394   184,217   173,305   138,292  7% 14% 43%
    Unimproved land  101,266   90,498   81,064   63,469  12% 25% 60%
    Developed lots for operative builders  68,087   61,276   41,840   27,143  11% 63% 151%
    Commercial lots  95,958   98,403   99,418   64,664  (2)% (3)% 48%
    Other construction  931,000   833,218   762,970   554,548  12% 22% 68%
    Total land, lot, and other construction  1,595,312   1,447,882   1,343,797   959,852  10% 19% 66%
    Owner occupied  2,747,152   2,675,681   2,645,841   2,019,860  3% 4% 36%
    Non-owner occupied  3,333,915   3,190,519   3,056,658   2,436,672  4% 9% 37%
    Total commercial real estate  6,081,067   5,866,200   5,702,499   4,456,532  4% 7% 36%
    Commercial and industrial  1,353,248   1,378,500   1,463,022   1,654,237  (2)% (8)% (18)%
    Agriculture  758,394   731,248   751,185   746,678  4% 1% 2%
    1st lien  1,596,878   1,466,279   1,393,267   1,105,579  9% 15% 44%
    Junior lien  34,149   33,438   34,830   38,029  2% (2)% (10)%
    Total 1-4 family  1,631,027   1,499,717   1,428,097   1,143,608  9% 14% 43%
    Multifamily residential  562,480   545,483   545,001   398,499  3% 3% 41%
    Home equity lines of credit  820,721   753,362   761,990   693,135  9% 8% 18%
    Other consumer  213,943   207,827   207,513   201,336  3% 3% 6%
    Total consumer  1,034,664   961,189   969,503   894,471  8% 7% 16%
    States and political subdivisions  695,396   659,742   615,251   631,199  5% 13% 10%
    Other  169,520   168,334   153,147   129,237  1% 11% 31%
    Total loans receivable, including loans held for sale  14,433,592   13,782,303   13,492,828   11,336,458  5% 7% 27%
    Less loans held for sale 1  (33,837)  (51,284)  (60,797)  (98,410) (34)% (44)% (66)%
    Total loans receivable $14,399,755  $13,731,019  $13,432,031  $11,238,048  5% 7% 28%

    ______________________________

    1 Loans held for sale are primarily 1st lien 1-4 family loans.


    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification

      

    Non-performing Assets, by Loan Type    		 Non-
    Accrual
    Loans    		 Accruing
    Loans 90
    Days
    or More Past
    Due    		 Other real
    estate owned
    and
    foreclosed
    assets
    (Dollars in thousands) Jun 30,
    2022    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021    		 Jun 30,
    2022    		 Jun 30,
    2022    		 Jun 30,
    2022
    Custom and owner occupied construction $230 233 237 243 230 — —
    Land development  197 240 250 279 197 — —
    Consumer land or lots  157 160 309 190 157 — —
    Unimproved land  107 128 124 178 107 — —
    Developed lots for operative builders  260 — — — 260 — —
    Commercial lots  — — — 368 — — —
    Other construction  12,884 12,884 12,884 — 12,884 — —
    Total land, lot and other construction  13,605 13,412 13,567 1,015 13,605 — —
    Owner occupied  4,013 3,508 3,918 3,747 3,809 204 —
    Non-owner occupied  1,491 1,526 6,063 1,892 1,491 — —
    Total commercial real estate  5,504 5,034 9,981 5,639 5,300 204 —
    Commercial and Industrial  5,741 4,252 3,066 6,046 4,331 1,051 359
    Agriculture  9,169 28,801 29,151 31,742 5,878 3,291 —
    1st lien  2,196 2,015 2,870 4,186 2,016 180 —
    Junior lien  200 301 136 272 145 55 —
    Total 1-4 family  2,396 2,316 3,006 4,458 2,161 235 —
    Multifamily residential  4,765 6,469 6,548 — 4,765 — —
    Home equity lines of credit  1,684 1,416 1,563 2,653 1,601 83 —
    Other consumer  466 543 460 542 263 183 20
    Total consumer  2,150 1,959 2,023 3,195 1,864 266 20
    Other  17 — 112 703 — 17 —
    Total $43,966 62,476 67,691 53,041 38,523 5,064 379
     
     

    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification (continued)

      Accruing 30-89 Days Delinquent Loans,  by Loan Type % Change from
    (Dollars in thousands) Jun 30,
    2022    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021
    Custom and owner occupied construction $2,046 $703 $1,243 $— 191% 65% n/m 
    Pre-sold and spec construction  602  —  443  70 n/m  36% 760%
    Total residential construction  2,648  703  1,686  70 277% 57% 3,683%
    Land development  365  317  —  — 15% n/m  n/m 
    Consumer land or lots  337  28  149  — 1,104% 126% n/m 
    Unimproved land  590  —  305  307 n/m  93% 92%
    Developed lots for operative builders  —  142  —  — (100)% n/m  n/m 
    Commercial lots  —  54  —  — (100)% n/m  n/m 
    Other construction  —  —  30,788  — n/m  (100)% n/m 
    Total land, lot and other construction  1,292  541  31,242  307 139% (96)% 321%
    Owner occupied  1,560  3,778  1,739  2,243 (59)% (10)% (30)%
    Non-owner occupied  123  266  1,558  574 (54)% (92)% (79)%
    Total commercial real estate  1,683  4,044  3,297  2,817 (58)% (49)% (40)%
    Commercial and industrial  5,969  3,275  4,732  2,947 82% 26% 103%
    Agriculture  851  162  459  837 425% 85% 2%
    1st lien  329  2,963  2,197  736 (89)% (85)% (55)%
    Junior lien  105  78  87  106 35% 21% (1)%
    Total 1-4 family  434  3,041  2,284  842 (86)% (81)% (48)%
    Home equity lines of credit  1,071  1,315  1,994  1,942 (19)% (46)% (45)%
    Other consumer  1,140  1,097  1,681  919 4% (32)% 24%
    Total consumer  2,211  2,412  3,675  2,861 (8)% (40)% (23)%
    States and political subdivisions  7  21  1,733  — (67)% (100)% n/m 
    Other  1,493  1,881  1,458  1,395 (21)% 2% 7%
    Total $16,588 $16,080 $50,566 $12,076 3% (67)% 37%

    ______________________________

    n/m - not measurable


    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification (continued)

      Net Charge-Offs (Recoveries), Year-to-Date
    Period Ending, By Loan Type    		 Charge-Offs Recoveries
    (Dollars in thousands) Jun 30,
    2022    		 Mar 31,
    2022    		 Dec 31,
    2021    		 Jun 30,
    2021    		 Jun 30,
    2022    		 Jun 30,
    2022
    Custom and owner occupied construction $—  —  —  —  — —
    Pre-sold and spec construction  (8) (4) (15) (8) — 8
    Total residential construction  (8) (4) (15) (8) — 8
    Land development  (21) (21) (233) (77) — 21
    Consumer land or lots  (10) (10) (165) (164) — 10
    Unimproved land  (1) —  (241) (21) — 1
    Developed lots for operative builders  —  —  —  —  — —
    Commercial lots  —  —  —  —  — —
    Other construction  —  —  —  —  — —
    Total land, lot and other construction  (32) (31) (639) (262) — 32
    Owner occupied  229  (386) (423) (70) 1,642 1,413
    Non-owner occupied  (3) (2) (357) (503) — 3
    Total commercial real estate  226  (388) (780) (573) 1,642 1,416
    Commercial and industrial  (458) (449) 41  (218) 308 766
    Agriculture  (4) (2) (20) (6) — 4
    1st lien  (56) (9) (331) (237) — 56
    Junior lien  (297) (78) (650) (475) — 297
    Total 1-4 family  (353) (87) (981) (712) — 353
    Multifamily residential  —  —  (40) (40) — —
    Home equity lines of credit  (51) (5) (621) (23) 44 95
    Other consumer  166  55  236  74  298 132
    Total consumer  115  50  (385) 51  342 227
    States and political subdivisions  —  —  —  —  — —
    Other  3,207  1,761  5,148  3,329  4,748 1,541
    Total $2,693  850  2,329  1,561  7,040 4,347
     

    Visit our website at www.glacierbancorp.com

    CONTACT: Randall M. Chesler, CEO
    (406) 751-4722
    Ron J. Copher, CFO
    (406) 751-7706

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