• Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended June 30, 2023

    Source: Nasdaq GlobeNewswire / 20 Jul 2023 15:30:02   America/Chicago

    2nd Quarter 2023 Highlights:

    • Net income was $55.0 million for the current quarter, a decrease of $6.2 million, or 10 percent, from the prior quarter net income of $61.2 million. Net income for the current quarter decreased $21.4 million, or 28 percent, from the prior year second quarter net income of $76.4 million.
    • Interest income of $247 million in the current quarter increased $15.5 million, or 7 percent, over the prior quarter interest income of $232 million. Interest income in the current quarter increased $47.7 million, or 24 percent, over the prior year second quarter.
    • Total deposits and retail repurchase agreements of $21.365 billion at the current quarter end increased $25.5 million, or 12 basis points, during the current quarter.
    • The loan portfolio of $15.955 billion, increased $436 million, or 11 percent annualized, during the current quarter.
    • The loan yield for the current quarter of 5.12 percent, increased 10 basis points, compared to 5.02 percent in the prior quarter and increased 60 basis points from the prior year second quarter loan yield of 4.52 percent.
    • Non-performing assets as a percentage of subsidiary assets was 0.12 percent in the current and prior quarter, compared to 0.16 percent in the prior year second quarter.
    • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 153 consecutive quarterly dividends and has increased the dividend 49 times.

    First Half 2023 Highlights

    • Net Income for the first half of 2023 was $116 million, a decrease of $28.0 million, or 19 percent, from the $144 million net income for the first half of the prior year.
    • Interest income for the first six months of 2023 was $479 million, an increase of $89.1 million, or 23 percent over the first half of the prior year interest income of $390 million.
    • The loan portfolio of $15.955 billion, increased $708 million, or 9 percent annualized, during the first half of the current year. The loan portfolio, excluding the Paycheck Protection Program (“PPP”) loans, increased $1.121 billion, or 17 percent annualized, during the first half of the prior year.
    • The loan yield was 5.07 percent for the first half of the current year, an increase of 51 basis points from the first half of the prior year loan yield of 4.56 percent.
    • Stockholders’ equity of $2.927 billion increased $83.2 million, or 3 percent, during the first six months of the current year.
    • Dividends declared in the first half of 2023 were $0.66 per share.

    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,
    2023    		 Mar 31,
    2023    		 Jun 30,
    2022    		 Jun 30,
    2023    		 Jun 30,
    2022
    Operating results         
    Net income$54,955  61,211  76,392  116,166  144,187 
    Basic earnings per share$0.50  0.55  0.69  1.05  1.30 
    Diluted earnings per share$0.50  0.55  0.69  1.05  1.30 
    Dividends declared per share$0.33  0.33  0.33  0.66  0.66 
    Market value per share         
    Closing$31.17  42.01  47.42  31.17  47.42 
    High$42.21  50.03  51.40  50.03  60.69 
    Low$26.77  37.07  44.43  26.77  44.43 
    Selected ratios and other data         
    Number of common stock shares outstanding 110,873,887  110,868,713  110,766,287  110,873,887  110,766,287 
    Average outstanding shares - basic 110,870,964  110,824,648  110,765,379  110,847,806  110,745,017 
    Average outstanding shares - diluted 110,875,535  110,881,708  110,794,982  110,879,654  110,799,368 
    Return on average assets (annualized) 0.81%  0.93%  1.16%  0.87%  1.11% 
    Return on average equity (annualized) 7.52%  8.54%  10.55%  8.03%  9.76% 
    Efficiency ratio 62.73%  60.39%  55.74%  61.52%  56.42% 
    Dividend payout 66.00%  60.00%  47.83%  62.86%  50.77% 
    Loan to deposit ratio 79.92%  77.09%  66.26%  79.92%  66.26% 
    Number of full time equivalent employees 3,369  3,390  3,439  3,369  3,439 
    Number of locations 222  222  224  222  224 
    Number of ATMs 274  263  274  274  274 
                    

    KALISPELL, Mont., July 20, 2023 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $55.0 million for the current quarter, a decrease of $21.4 million, or 28 percent, from the $76.4 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.50 per share, a decrease of 28 percent from the prior year second quarter diluted earnings per share of $0.69. The decrease in net income compared to the prior quarter and prior year second quarter is primarily due to the continued increase in funding costs. “The growth in total deposits and repurchase agreements this quarter underscores the effectiveness of our team in successfully meeting the needs of local deposit relationships in this highly competitive environment,” said Randy Chesler, President and Chief Executive Officer. “Our deep local relationships, strong capital position and consistent financial performance helped set the stage for this growth.”

    Net income for the six months ended June 30, 2023 was $116 million, a decrease of $28.0 million, or 19 percent, from the $144 million for the first six months in the prior year. Diluted earnings per share for the first half of 2023 was $1.05 per share, a decrease of 19 percent from the prior year first half diluted earnings per share of $1.30.

    Asset Summary

             $ Change from
    (Dollars in thousands)Jun 30,
    2023    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022
    Cash and cash equivalents$1,051,320  1,529,534  401,995  415,406  (478,214) 649,325  635,914 
    Debt securities, available-for-sale 4,999,820  5,198,313  5,307,307  6,209,199  (198,493) (307,487) (1,209,379)
    Debt securities, held-to-maturity 3,608,289  3,664,393  3,715,052  3,788,486  (56,104) (106,763) (180,197)
    Total debt securities 8,608,109  8,862,706  9,022,359  9,997,685  (254,597) (414,250) (1,389,576)
    Loans receivable             
    Residential real estate 1,588,175  1,508,403  1,446,008  1,261,119  79,772  142,167  327,056 
    Commercial real estate 10,220,751  9,992,019  9,797,047  9,310,070  228,732  423,704  910,681 
    Other commercial 2,888,810  2,804,104  2,799,668  2,685,392  84,706  89,142  203,418 
    Home equity 862,240  829,844  822,232  773,582  32,396  40,008  88,658 
    Other consumer 394,986  384,242  381,857  369,592  10,744  13,129  25,394 
    Loans receivable 15,954,962  15,518,612  15,246,812  14,399,755  436,350  708,150  1,555,207 
    Allowance for credit losses (189,385) (186,604) (182,283) (172,963) (2,781) (7,102) (16,422)
    Loans receivable, net 15,765,577  15,332,008  15,064,529  14,226,792  433,569  701,048  1,538,785 
    Other assets 2,102,673  2,078,186  2,146,492  2,050,122  24,487  (43,819) 52,551 
    Total assets$27,527,679  27,802,434  26,635,375  26,690,005  (274,755) 892,304  837,674 
                          

    Total debt securities of $8.608 billion at June 30, 2023 decreased $255 million, or 3 percent, during the current quarter and decreased $1.390 billion, or 14 percent, from the prior year second quarter. The Company continues to utilize cash flow from the securities portfolio to primarily fund loan growth. Debt securities represented 31 percent of total assets at June 30, 2023, compared to 34 percent at December 31, 2022, and 37 percent at June 30, 2022.

    The loan portfolio of $15.955 billion increased $436 million, or 11 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $229 million, or 9 percent annualized. The loan portfolio increased $1.555 billion, or 11 percent, from the prior year second quarter with the largest dollar increase in commercial real estate loans which increased $911 million, or 10 percent.

    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,
    2023    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022
    Allowance for credit losses       
    Balance at beginning of period$182,283  182,283  172,665  172,665 
    Provision for credit losses 11,514  6,260  17,433  2,991 
    Charge-offs (7,083) (3,293) (14,970) (7,040)
    Recoveries 2,671  1,354  7,155  4,347 
    Balance at end of period$189,385  186,604  182,283  172,963 
    Provision for credit losses       
    Loan portfolio$11,514  6,260  17,433  2,991 
    Unfunded loan commitments (3,271) (790) 2,530  2,507 
    Total provision for credit losses$8,243  5,470  19,963  5,498 
    Other real estate owned$—  —  —  — 
    Other foreclosed assets 52  31  32  379 
    Accruing loans 90 days or more past due 3,876  3,545  1,559  5,064 
    Non-accrual loans 28,094  28,403  31,151  38,523 
    Total non-performing assets$32,022  31,979  32,742  43,966 
    Non-performing assets as a percentage of subsidiary assets 0.12% 0.12% 0.12% 0.16%
    Allowance for credit losses as a percentage of non-performing loans 592% 584% 557% 393%
    Allowance for credit losses as a percentage of total loans 1.19% 1.20% 1.20% 1.20%
    Net charge-offs as a percentage of total loans 0.03% 0.01% 0.05% 0.02%
    Accruing loans 30-89 days past due$24,863  24,993  20,967  16,588 
    U.S. government guarantees included in non-performing assets$1,035  2,071  2,312  5,888 
                 

    Non-performing assets of $32.0 million at June 30, 2023 decreased $11.9 million, or 27 percent, over the prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2023 and March 31, 2023 was 0.12 percent compared to 0.16 percent in the prior year second quarter.

    Early stage delinquencies (accruing loans 30-89 days past due) of $24.9 million at June 30, 2023 increased $8.3 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2023 and March 31, 2023 was 0.16 percent, which compared to 0.12 percent from prior year second quarter.

    The current quarter credit loss expense of $2.8 million included $5.3 million of credit loss expense from loans and $2.5 million 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, 2023 was 1.19 percent, compared to 1.20 percent in the prior quarter and 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 2023$5,254  $2,473  1.19% 0.16% 0.12%
    First quarter 2023 6,260   1,939  1.20% 0.16% 0.12%
    Fourth quarter 2022 6,060   1,968  1.20% 0.14% 0.12%
    Third quarter 2022 8,382   3,154  1.20% 0.07% 0.13%
    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%
                     

    Net charge-offs for the current quarter were $2.5 million compared to $2.0 million in the prior quarter and $1.8 million for the prior year second quarter. Net charge-offs of $2.5 million included $1.7 million in deposit overdraft net charge-offs and $773 thousand of net loan charge-offs.

    The current quarter provision for credit loss expense for loans was $5.3 million which was a decrease of $1.0 million from the prior quarter and a $6.6 million increase from the prior year second quarter. 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,
    2023    		 Mar 31,
    2023
    		 Dec 31,
    2022
    		 Jun 30,
    2022
    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022
    Deposits                
    Non-interest bearing deposits$6,458,394  7,001,241  7,690,751  8,061,304  (542,847) (1,232,357) (1,602,910)
    NOW and DDA accounts 5,154,442  5,156,709  5,330,614  5,432,333  (2,267) (176,172) (277,891)
    Savings accounts 2,808,571  2,985,351  3,200,321  3,296,561  (176,780) (391,750) (487,990)
    Money market deposit accounts 3,094,302  3,429,123  3,472,281  4,021,102  (334,821) (377,979) (926,800)
    Certificate accounts 2,014,104  1,155,494  880,589  968,382  858,610  1,133,515  1,045,722 
    Core deposits, total 19,529,813  19,727,918  20,574,556  21,779,682  (198,105) (1,044,743) (2,249,869)
    Wholesale deposits 478,417  420,390  31,999  4,001  58,027  446,418  474,416 
    Deposits, total 20,008,230  20,148,308  20,606,555  21,783,683  (140,078) (598,325) (1,775,453)
    Repurchase agreements 1,356,862  1,191,323  945,916  968,197  165,539  410,946  388,665 
    Deposits and repurchase agreements, total 21,365,092  21,339,631  21,552,471  22,751,880  25,461  (187,379) (1,386,788)
    Federal Home Loan Bank advances —  335,000  1,800,000  580,000  (335,000) (1,800,000) (580,000)
    FRB Bank Term Funding 2,740,000  2,740,000  —  —  —  2,740,000  2,740,000 
    Other borrowed funds 75,819  76,185  77,293  66,200  (366) (1,474) 9,619 
    Subordinated debentures 132,863  132,822  132,782  132,701  41  81  162 
    Other liabilities 287,379  251,892  229,524  262,985  35,487  57,855  24,394 
    Total liabilities$24,601,153  24,875,530  23,792,070  23,793,766  (274,377) 809,083  807,387 
                          

    During the current quarter, the Company continued to focus on its diversified deposit and repurchase agreement product offerings. Total deposits and retail repurchase agreements of $21.365 billion at the current quarter end increased $25.5 million, or 12 basis points, during the current quarter. Non-interest bearing deposits were 33 percent of total core deposits at June 30, 2023 compared to 37 percent at December 31, 2022 and June 30, 2022.

    During the current quarter, the Company fully paid off its higher rate Federal Home Loan Bank (“FHLB”) advances. The Company’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. The Company has available liquidity of $15.1 billion including cash, borrowing capacity from the FHLB and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.

    Stockholders’ Equity Summary

             $ Change from
    (Dollars in thousands, except per share data)Jun 30,
    2023    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022
    Common equity$3,357,313  3,337,132  3,312,097  3,223,451  20,181  45,216  133,862 
    Accumulated other comprehensive loss (430,787) (410,228) (468,792) (327,212) (20,559) 38,005  (103,575)
    Total stockholders’ equity 2,926,526  2,926,904  2,843,305  2,896,239  (378) 83,221  30,287 
    Goodwill and core deposit intangible, net (1,022,118) (1,024,545) (1,026,994) (1,032,323) 2,427  4,876  10,205 
    Tangible stockholders’ equity$1,904,408  1,902,359  1,816,311  1,863,916  2,049  88,097  40,492 


    Stockholders’ equity to total assets 10.63% 10.53% 10.67% 10.85%         
    Tangible stockholders’ equity to total tangible assets 7.18% 7.10% 7.09% 7.26%         
    Book value per common share$26.40  26.40  25.67  26.15  —  0.73  0.25 
    Tangible book value per common share$17.18  17.16  16.40  16.83  0.02  0.78  0.35 
                          

    Tangible stockholders’ equity was $1.904 billion at June 30, 2023 increased $2.0 million, or 1 basis point, compared to the prior quarter and increased $88.0 million, or 5 percent, from the prior year end, which was primarily due to earnings retention and the decrease in the net unrealized loss (after-tax) on the AFS debt securities. Tangible book value per common share of $17.18 at the current quarter end increased $0.78 per share, or 5 percent, from the prior year end. The tangible book value per common share increased $0.35 per share from the prior year second quarter.

    Cash Dividends
    On June 28, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The current quarter dividend of $0.33 per share was consistent with the dividend declared in the prior quarter and the prior year second quarter. The dividend was payable July 20, 2023 to shareholders of record on July 11, 2023. The dividend was the Company’s 153rd consecutive regular 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, 2023 
    Compared to March 31, 2023, and June 30, 2022

    Income Summary

     Three Months ended$ Change from
    (Dollars in thousands)Jun 30,
    2023    		 Mar 31,
    2023    		 Jun 30,
    2022    		 Mar 31,
    2023    		 Jun 30,
    2022
    Net interest income         
    Interest income$247,365  231,888  199,637  15,477  47,728 
    Interest expense 75,385  45,696  6,199  29,689  69,186 
    Total net interest income 171,980  186,192  193,438  (14,212) (21,458)
              
    Non-interest income         
    Service charges and other fees 18,967  17,771  17,309  1,196  1,658 
    Miscellaneous loan fees and charges 4,162  3,967  3,850  195  312 
    Gain on sale of loans 3,528  2,400  4,996  1,128  (1,468)
    Loss on sale of debt securities (23) (114) (260) 91  237 
    Other income 2,445  3,871  2,385  (1,426) 60 
    Total non-interest income 29,079  27,895  28,280  1,184  799 
    Total income 201,059  214,087  221,718  (13,028) (20,659)
                  
    Net interest margin (tax-equivalent) 2.74% 3.08% 3.23%    
                  

    Net Interest Income
    The current quarter interest income of $247 million increased $15.5 million, or 7 percent, over the prior quarter and was driven primarily by the increase in the loan portfolio and an increase in loan yields. The current quarter interest income increased $47.7 million, or 24 percent, over the prior year second quarter also due to loan growth and increased loan yields. The loan yield of 5.12 percent in the current quarter increased 10 basis points from the prior quarter loan yield of 5.02 percent and increased 60 basis points from the prior year second quarter loan yield of 4.52 percent.

    The current quarter interest expense of $75.4 million increased $29.7 million, or 65 percent, over the prior quarter and increased $69.2 million, or 1,116 percent, over the prior year second quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 0.57 percent for the current quarter compared to 0.23 percent in the prior quarter and 0.06 percent for the prior year second quarter. The total cost of funding (including non-interest bearing deposits) was 1.26 percent in the current quarter compared to 0.79 percent in the prior quarter and 0.11 percent in the prior year second quarter which was the result of the increased deposit and borrowing rates.

    The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.74 percent compared to 3.08 percent in the prior quarter and 3.23 percent in the prior year second quarter. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.72 percent compared to 3.07 percent in the prior quarter and 3.16 percent in the prior year second quarter. The core net interest margin decreased 35 basis points in the current quarter primarily as a result of increased deposit and borrowing rates.

    Non-interest Income
    Non-interest income for the current quarter totaled $29.1 million which was an increase of $1.2 million, or 4 percent, over the prior quarter which was primarily driven by an increase in service charges and gain on the sale of residential loans. Gain on the sale of residential loans of $3.5 million for the current quarter increased $1.1 million, or 47 percent, compared to the prior quarter and decreased $1.5 million, or 29 percent, from the prior year second quarter. Service charges and other fees of $19.0 million in the current quarter increased $1.2 million, or 7 percent, over the prior quarter and increased $1.7 million, or 10 percent, over the prior year second quarter.

    Non-interest Expense Summary

     Three Months ended $ Change from
    (Dollars in thousands)Jun 30,
    2023    		 Mar 31,
    2023    		  Jun 30,
    2022    		  Mar 31,
    2023    		 Jun 30,
    2022
    Compensation and employee benefits$78,764  81,477  79,803  (2,713) (1,039)
    Occupancy and equipment 10,827  11,665  10,766  (838) 61 
    Advertising and promotions 3,733  4,235  3,766  (502) (33)
    Data processing 8,402  8,109  7,553  293  849 
    Other real estate owned and foreclosed assets 14  12  6  2  8 
    Regulatory assessments and insurance 5,314  4,903  3,085  411  2,229 
    Core deposit intangibles amortization 2,427  2,449  2,665  (22) (238)
    Other expenses 21,123  22,132  21,877  (1,009) (754)
                    
    Total non-interest expense$130,604  134,982  129,521  (4,378) 1,083 
                    

    Total non-interest expense of $131 million for the current quarter decreased $4.4 million, or 3 percent, over the prior quarter and increased $1.1 million, or 1 percent, over the prior year second quarter. Compensation and employee benefits expense of $78.8 million for the current quarter decreased $2.7 million, or 3 percent, from the prior quarter and decreased $1.0 million, or 1 percent, over the prior year second quarter which was driven primarily by decreases in accrued expenses for employee benefits. Regulatory assessments and insurance of $5.3 million, increased $2.2 million, or 72 percent, over the prior year second quarter and was primarily due to the FDIC uniformly increasing all depository institutions premiums beginning in the prior quarter. “The current quarter reduction in non-interest expense is primarily due to reductions in compensation and related benefits as the Company continues to closely monitor staffing levels and improve operating efficiencies,” said Ron Copher, Chief Financial Officer.

    Federal and State Income Tax Expense
    Tax expense during the second quarter of 2023 was $12.7 million, a decrease of $303 thousand, or 2 percent, compared to the prior quarter and a decrease of $4.6 million, or 27 percent, from the prior year second quarter. The effective tax rate in the current quarter was 18.8 percent compared to 16.9 percent in the prior quarter and 18.5 percent in the prior year second quarter.

    Efficiency Ratio
    The efficiency ratio was 62.73 percent in the current quarter compared to 60.39 percent in the prior quarter and 55.74 percent in the prior year second quarter. The increase the from prior quarter and prior year second quarter was primarily attributable to the increase in interest expense in the current quarter.

    Operating Results for Six Months Ended June 30, 2023
    Compared to June 30, 2022

    Income Summary

     Six Months ended  
    (Dollars in thousands)Jun 30,
    2023    		 Jun 30,
    2022    		 $ Change % Change
    Net interest income       
    Interest income$479,253  $390,153  $89,100  23%
    Interest expense 121,081   11,160   109,921  985%
    Total net interest income 358,172   378,993   (20,821) (5)%
            
    Non-interest income       
    Service charges and other fees 36,738   34,420   2,318  7%
    Miscellaneous loan fees and charges 8,129   7,405   724  10%
    Gain on sale of loans 5,928   14,011   (8,083) (58)%
    (Loss) gain on sale of debt securities (137)  186   (323) (174)%
    Other income 6,316   5,821   495  9%
    Total non-interest income 56,974   61,843   (4,869) (8)%
    Total Income$415,146  $440,836  $(25,690) (6)%
                  
    Net interest margin (tax-equivalent) 2.91%  3.21%    
                

    Net Interest Income
    Net-interest income of $358 million for the first half of 2023 decreased $20.8 million, or 5 percent, over the same period of 2022 and was primarily driven by increased interest expense. Interest income of $479 million for the first six months in the current year increased $89.1 million, or 23 percent, from the same period in the prior year and was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The loan yield was 5.07 percent for the first half of the current year, an increase of 51 basis points from the first half of the prior year loan yield of 4.56 percent.

    Interest expense of $121.1 million for the first half of 2023 increased $110 million, or 985 percent, over the same period in the prior year and was the result of increased borrowings and higher interest rates on borrowings and deposits. Core deposit cost (including non-interest bearing deposits) was 0.40 percent for the first half of 2023 compared to 0.06 percent for the same period in 2022. The total funding cost (including non-interest bearing deposits) for the first six months of the current year was 1.03 percent, which was an increase of 93 basis points over the prior year first half of 0.10 percent.

    The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2023 was 2.91 percent, a 30 basis points decrease from the net interest margin of 3.21 percent for the same period in the prior year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.90 percent, which was a 21 basis points decrease from the core margin of 3.11 percent in the prior year.

    Non-interest Income
    Non-interest income of $57.0 million for the first half of 2023 decreased $4.9 million, or 8 percent, over the same period last year and was principally due to the decrease in gain on sale of residential loans which was partially offset by the increase in service charges and other fees.
    Non-interest Expense Summary

     Six Months ended    
    (Dollars in thousands)Jun 30,
    2023    		 Jun 30,
    2022    		 $ Change % Change
    Compensation and employee benefits$160,241  $158,877  $1,364  1%
    Occupancy and equipment 22,492   21,730   762  4%
    Advertising and promotions 7,968   6,998   970  14%
    Data processing 16,511   15,028   1,483  10%
    Other real estate owned and foreclosed assets 26   6   20  333%
    Regulatory assessments and insurance 10,217   6,140   4,077  66%
    Core deposit intangibles amortization 4,876   5,329   (453) (9)%
    Other expenses 43,255   45,721   (2,466) (5)%
    Total non-interest expense$265,586  $259,829  $5,757  2%
                   

    Total non-interest expense of $266 million for the first six months of 2023 increased $5.8 million, or 2 percent, over the same period in the prior year. Regulatory assessments and insurance of $10.2 million for the first half of 2023 increased $4.1 million, or 66 percent, over the prior year and was primarily due to the FDIC uniformly increasing all depository institutions premiums beginning in 2023. Other expense of $43.3 million for the first half of 2023 decreased $2.5 million, or 5 percent, from the first half of the prior year and was primarily due to the decrease in acquisition-related expenses along with changes in several miscellaneous categories. Acquisition-related expenses were $563 thousand in the first half of the current year compared to $8.3 million in the same period of last year.

    Provision for Credit Losses
    The provision for credit loss expense was $8.2 million for the first half of 2023 increased $2.7 million, or 50 percent, over the same period of the prior year. The provision for credit loss expense for the first half of 2023 included provision for credit loss expense of $11.5 million on the loan portfolio and credit loss benefit of $3.3 million on the unfunded loan commitments. Net charge-offs during the first half of the current year were $4.4 million compared to $2.7 million during the same period of the prior year.

    Federal and State Income Tax Expense
    Tax expense of $25.2 million for the first half of 2023 decreased $6.2 million, or 20 percent, over the first six months of the prior year. The effective tax rate for first half of 2023 was 17.8 percent compared to 17.8 percent for the first half of 2022.

    Efficiency Ratio
    The efficiency ratio was 61.52 percent for the first six months of 2023 compared to 56.42 percent for the same period last year. The increase from the prior year was primarily attributable to the increase in interest expense in the current year.

    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 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 based on assumptions 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 made in this news release:

    • risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
    • changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
    • legislative or regulatory changes, including increased banking and consumer protection regulations, that may adversely affect the Company’s business;
    • risks related to overall economic conditions, including the impact on the economy of a rising interest rate environment, inflationary pressures, and geopolitical instability, including the war in Ukraine;
    • risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;
    • costs or difficulties related to the completion and integration of acquisitions;
    • impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
    • reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
    • deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company's ability to obtain and maintain customers;
    • changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
    • 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 through acquisitions;
    • risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
    • material failure, potential interruption or breach in security of the Company’s systems or changes in technological which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
    • risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
    • success in managing risks involved in the foregoing; and
    • 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 21, 2023. Please note that our conference call host no longer offers a general dial-in number. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BI19db5b01086643a5bde0e9f301e797ea. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/6gianovu. 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,
    2023    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022
    Assets       
    Cash on hand and in banks$285,920  290,960  300,194  293,541 
    Interest bearing cash deposits 765,400  1,238,574  101,801  121,865 
    Cash and cash equivalents 1,051,320  1,529,534  401,995  415,406 
    Debt securities, available-for-sale 4,999,820  5,198,313  5,307,307  6,209,199 
    Debt securities, held-to-maturity 3,608,289  3,664,393  3,715,052  3,788,486 
    Total debt securities 8,608,109  8,862,706  9,022,359  9,997,685 
    Loans held for sale, at fair value 35,006  14,461  12,314  33,837 
    Loans receivable 15,954,962  15,518,612  15,246,812  14,399,755 
    Allowance for credit losses (189,385) (186,604) (182,283) (172,963)
    Loans receivable, net 15,765,577  15,332,008  15,064,529  14,226,792 
    Premises and equipment, net 405,407  399,740  398,100  386,198 
    Other real estate owned and foreclosed assets 52  31  32  379 
    Accrued interest receivable 88,351  90,642  83,538  80,339 
    Deferred tax asset 179,815  172,453  193,187  147,263 
    Core deposit intangible, net 36,725  39,152  41,601  46,930 
    Goodwill 985,393  985,393  985,393  985,393 
    Non-marketable equity securities 10,014  23,414  82,015  33,215 
    Bank-owned life insurance 169,195  168,235  169,068  168,231 
    Other assets 192,715  184,665  181,244  168,337 
    Total assets$27,527,679  27,802,434  26,635,375  26,690,005 
    Liabilities       
    Non-interest bearing deposits$6,458,394  7,001,241  7,690,751  8,061,304 
    Interest bearing deposits 13,549,836  13,147,067  12,915,804  13,722,379 
    Securities sold under agreements to repurchase 1,356,862  1,191,323  945,916  968,197 
    FHLB advances —  335,000  1,800,000  580,000 
    FRB Bank Term Funding 2,740,000  2,740,000  —  — 
    Other borrowed funds 75,819  76,185  77,293  66,200 
    Subordinated debentures 132,863  132,822  132,782  132,701 
    Accrued interest payable 47,742  8,968  4,331  2,334 
    Other liabilities 239,637  242,924  225,193  260,651 
    Total liabilities 24,601,153  24,875,530  23,792,070  23,793,766 
    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 1,109  1,109  1,108  1,108 
    Paid-in capital 2,346,422  2,344,514  2,344,005  2,341,097 
    Retained earnings - substantially restricted 1,009,782  991,509  966,984  881,246 
    Accumulated other comprehensive loss (430,787) (410,228) (468,792) (327,212)
    Total stockholders’ equity 2,926,526  2,926,904  2,843,305  2,896,239 
    Total liabilities and stockholders’ equity$27,527,679  27,802,434  26,635,375  26,690,005 


     
    Glacier Bancorp, Inc.
    Unaudited Condensed Consolidated Statements of Operations
     
     Three Months ended Six Months ended
    (Dollars in thousands, except per share data)Jun 30,
    2023    		 Mar 31,
    2023    		 Jun 30,
    2022    		 Jun 30,
    2023    		 Jun 30,
    2022
    Interest Income          
    Investment securities$47,658  43,642  42,841  91,300  81,495 
    Residential real estate loans 17,076  15,838  13,026  32,914  28,541 
    Commercial loans 164,587  155,682  131,259  320,269  255,815 
    Consumer and other loans 18,044  16,726  12,511  34,770  24,302 
    Total interest income 247,365  231,888  199,637  479,253  390,153 
    Interest Expense          
    Deposits 31,700  12,545  3,141  44,245  6,605 
    Securities sold under agreements to
    repurchase    		 8,607  4,606  367  13,213  760 
    Federal Home Loan Bank advances 3,305  23,605  1,298  26,910  1,310 
    FRB Bank Term Funding 29,899  3,032  —  32,931  — 
    Other borrowed funds 443  496  264  939  484 
    Subordinated debentures 1,431  1,412  1,129  2,843  2,001 
    Total interest expense 75,385  45,696  6,199  121,081  11,160 
    Net Interest Income 171,980  186,192  193,438  358,172  378,993 
    Provision for credit losses 2,773  5,470  (1,533) 8,243  5,498 
    Net interest income after provision for credit losses 169,207  180,722  194,971  349,929  373,495 
    Non-Interest Income          
    Service charges and other fees 18,967  17,771  17,309  36,738  34,420 
    Miscellaneous loan fees and charges 4,162  3,967  3,850  8,129  7,405 
    Gain on sale of loans 3,528  2,400  4,996  5,928  14,011 
    (Loss) gain on sale of debt securities (23) (114) (260) (137) 186 
    Other income 2,445  3,871  2,385  6,316  5,821 
    Total non-interest income 29,079  27,895  28,280  56,974  61,843 
    Non-Interest Expense          
    Compensation and employee benefits 78,764  81,477  79,803  160,241  158,877 
    Occupancy and equipment 10,827  11,665  10,766  22,492  21,730 
    Advertising and promotions 3,733  4,235  3,766  7,968  6,998 
    Data processing 8,402  8,109  7,553  16,511  15,028 
    Other real estate owned and foreclosed assets 14  12  6  26  6 
    Regulatory assessments and insurance 5,314  4,903  3,085  10,217  6,140 
    Core deposit intangibles amortization 2,427  2,449  2,665  4,876  5,329 
    Other expenses 21,123  22,132  21,877  43,255  45,721 
    Total non-interest expense 130,604  134,982  129,521  265,586  259,829 
    Income Before Income Taxes 67,682  73,635  93,730  141,317  175,509 
    Federal and state income tax expense 12,727  12,424  17,338  25,151  31,322 
    Net Income$54,955  61,211  76,392  116,166  144,187 


     
    Glacier Bancorp, Inc.
    Average Balance Sheets
     
     Three Months ended
     June 30, 2023 March 31, 2023
    (Dollars in thousands)Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate    		 Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate
    Assets           
    Residential real estate loans$1,567,136  $17,076  4.36% $1,493,938  $15,838  4.24%
    Commercial loans 1 12,950,934   165,874  5.14%  12,655,551   157,456  5.05%
    Consumer and other loans 1,236,763   18,044  5.85%  1,207,315   16,726  5.62%
    Total loans 2 15,754,833   200,994  5.12%  15,356,804   190,020  5.02%
    Tax-exempt debt securities 3 1,743,852   14,462  3.32%  1,761,533   16,030  3.64%
    Taxable debt securities 4 8,177,551   35,202  1.72%  8,052,662   31,084  1.54%
    Total earning assets 25,676,236   250,658  3.92%  25,170,999   237,134  3.82%
    Goodwill and intangibles 1,023,291       1,025,716     
    Non-earning assets 523,349       478,962     
    Total assets$27,222,876      $26,675,677     
    Liabilities           
    Non-interest bearing deposits$6,584,082  $—  —% $7,274,228  $—  —%
    NOW and DDA accounts 5,108,421   7,429  0.58%  5,080,175   2,271  0.18%
    Savings accounts 2,846,015   1,064  0.15%  3,107,559   514  0.07%
    Money market deposit accounts 3,256,007   10,174  1.25%  3,468,953   5,834  0.68%
    Certificate accounts 1,451,218   8,878  2.45%  984,770   2,584  1.06%
    Total core deposits 19,245,743   27,545  0.57%  19,915,685   11,203  0.23%
    Wholesale deposits 5 330,655   4,155  5.04%  120,468   1,342  4.52%
    Repurchase agreements 1,273,045   8,607  2.71%  1,035,582   4,606  1.80%
    FHLB advances 245,055   3,305  5.33%  1,990,833   23,605  4.74%
    FRB Bank Term Funding 2,740,000   29,899  4.38%  280,944   3,032  4.32%
    Subordinated debentures and other borrowed funds 208,804   1,874  3.60%  209,547   1,908  3.69%
    Total funding liabilities 24,043,302   75,385  1.26%  23,553,059   45,696  0.79%
    Other liabilities 247,319       217,245     
    Total liabilities 24,290,621       23,770,304     
    Stockholders’ Equity           
    Common stock 1,108       1,108     
    Paid-in capital 2,345,438       2,344,301     
    Retained earnings 1,017,456       998,340     
    Accumulated other comprehensive loss (431,747)      (438,376)    
    Total stockholders’ equity 2,932,255       2,905,373     
    Total liabilities and stockholders’ equity$27,222,876      $26,675,677     
    Net interest income (tax-equivalent)  $175,273      $191,438   
    Net interest spread (tax-equivalent)    2.66%     3.03%
    Net interest margin (tax-equivalent)    2.74%     3.08%

    ______________________________
    1     Includes tax effect of $1.3 million and $1.8 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2023 and March 31, 2023, 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 $1.8 million and $3.3 million on tax-exempt debt securities income for the three months ended June 30, 2023 and March 31, 2023, respectively.
    4 Includes tax effect of $214 thousand and $215 thousand on federal income tax credits for the three months ended June 30, 2023 and March 31, 2023, 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, 2023 June 30, 2022
    (Dollars in thousands)Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate    		 Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate
    Assets           
    Residential real estate loans$1,567,136  $17,076  4.36% $1,229,013  $13,026  4.24%
    Commercial loans 1 12,950,934   165,874  5.14%  11,712,381   132,799  4.55%
    Consumer and other loans 1,236,763   18,044  5.85%  1,107,396   12,511  4.53%
    Total loans 2 15,754,833   200,994  5.12%  14,048,790   158,336  4.52%
    Tax-exempt debt securities 3 1,743,852   14,462  3.32%  1,979,865   18,413  3.72%
    Taxable debt securities 4 8,177,551   35,202  1.72%  8,685,641   28,473  1.31%
    Total earning assets 25,676,236   250,658  3.92%  24,714,296   205,222  3.33%
    Goodwill and intangibles 1,023,291       1,033,601     
    Non-earning assets 523,349       619,671     
    Total assets$27,222,876      $26,367,568     
    Liabilities           
    Non-interest bearing deposits$6,584,082  $—  —% $7,991,993  $—  —%
    NOW and DDA accounts 5,108,421   7,429  0.58%  5,405,470   723  0.05%
    Savings accounts 2,846,015   1,064  0.15%  3,261,798   244  0.03%
    Money market deposit accounts 3,256,007   10,174  1.25%  3,999,582   1,369  0.14%
    Certificate accounts 1,451,218   8,878  2.45%  982,397   797  0.33%
    Total core deposits 19,245,743   27,545  0.57%  21,641,240   3,133  0.06%
    Wholesale deposits 5 330,655   4,155  5.04%  3,877   8  0.71%
    Repurchase agreements 1,273,045   8,607  2.71%  923,459   367  0.16%
    FHLB advances 245,055   3,305  5.33%  476,978   1,298  1.08%
    FRB Bank Term Funding 2,740,000   29,899  4.38%  —   —  —%
    Subordinated debentures and other borrowed funds 208,804   1,874  3.60%  190,072   1,393  2.94%
    Total funding liabilities 24,043,302   75,385  1.26%  23,235,626   6,199  0.11%
    Other liabilities 247,319       235,814     
    Total liabilities 24,290,621       23,471,440     
    Stockholders’ Equity           
    Common stock 1,108       1,108     
    Paid-in capital 2,345,438       2,340,059     
    Retained earnings 1,017,456       875,276     
    Accumulated other comprehensive loss (431,747)      (320,315)    
    Total stockholders’ equity 2,932,255       2,896,128     
    Total liabilities and stockholders’ equity$27,222,876      $26,367,568     
    Net interest income (tax-equivalent)  $175,273      $199,023   
    Net interest spread (tax-equivalent)    2.66%     3.22%
    Net interest margin (tax-equivalent)    2.74%     3.23%

    ______________________________
    1     Includes tax effect of $1.3 million and $1.5 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2023 and 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 $1.8 million and $3.8 million on tax-exempt debt securities income for the three months ended June 30, 2023 and 2022, respectively.
    4 Includes tax effect of $214 thousand and $226 thousand on federal income tax credits for the three months ended June 30, 2023 and 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)
     
     Six Months ended
     June 30, 2023 June 30, 2022
    (Dollars in thousands)Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate    		 Average
    Balance    		 Interest &
    Dividends    		 Average
    Yield/
    Rate
    Assets           
    Residential real estate loans$1,530,739  $32,914  4.30% $1,184,864  $28,541  4.82%
    Commercial loans 1 12,804,058   323,330  5.09%  11,516,661   258,718  4.53%
    Consumer and other loans 1,222,121   34,770  5.74%  1,091,338   24,302  4.49%
    Total loans 2 15,556,918   391,014  5.07%  13,792,863   311,561  4.56%
    Tax-exempt debt securities 3 1,752,644   30,492  3.48%  1,852,204   34,077  3.68%
    Taxable debt securities 4 8,115,452   66,286  1.63%  8,783,881   54,938  1.25%
    Total earning assets 25,425,014   487,792  3.87%  24,428,948   400,576  3.31%
    Goodwill and intangibles 1,024,497       1,034,951     
    Non-earning assets 501,278       687,668     
    Total assets$26,950,789      $26,151,567     
    Liabilities           
    Non-interest bearing deposits$6,927,248  $—  —% $7,926,215  $—  —%
    NOW and DDA accounts 5,094,376   9,700  0.38%  5,343,074   1,568  0.06%
    Savings accounts 2,976,065   1,578  0.11%  3,254,197   576  0.04%
    Money market deposit accounts 3,361,892   16,008  0.96%  4,015,102   2,750  0.14%
    Certificate accounts 1,219,282   11,462  1.90%  1,000,893   1,694  0.34%
    Total core deposits 19,578,863   38,748  0.40%  21,539,481   6,588  0.06%
    Wholesale deposits 5 226,142   5,497  4.90%  10,497   17  0.31%
    Repurchase agreements 1,154,970   13,213  2.31%  946,872   760  0.16%
    FHLB advances 1,113,122   26,910  4.81%  247,265   1,310  1.05%
    FRB Bank Term Funding 1,517,265   32,931  4.38%  —   —  —%
    Subordinated debentures and other borrowed funds 209,174   3,782  3.65%  184,927   2,485  2.71%
    Total funding liabilities 23,799,536   121,081  1.03%  22,929,042   11,160  0.10%
    Other liabilities 232,365       242,528     
    Total liabilities 24,031,901       23,171,570     
    Stockholders’ Equity           
    Common stock 1,108       1,107     
    Paid-in capital 2,344,872       2,339,476     
    Retained earnings 1,007,951       861,302     
    Accumulated other comprehensive income (435,043)      (221,888)    
    Total stockholders’ equity 2,918,888       2,979,997     
    Total liabilities and stockholders’ equity$26,950,789      $26,151,567     
    Net interest income (tax-equivalent)  $366,711      $389,416   
    Net interest spread (tax-equivalent)    2.84%     3.21%
    Net interest margin (tax-equivalent)    2.91%     3.21%

    ______________________________
    1     Includes tax effect of $3.1 million and $2.9 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2023 and 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 $5.0 million and $7.1 million on tax-exempt debt securities income for the six months ended June 30, 2023 and 2022, respectively.
    4 Includes tax effect of $429 thousand and $451 thousand on federal income tax credits for the six months ended June 30, 2023 and 2022, 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,
    2023    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022
    Custom and owner occupied construction$315,651  $295,604  $298,461  $282,916  7% 6% 12%
    Pre-sold and spec construction 306,440   312,715   297,895   269,568  (2)% 3% 14%
    Total residential construction 622,091   608,319   596,356   552,484  2% 4% 13%
    Land development 238,897   230,823   219,842   201,607  3% 9% 18%
    Consumer land or lots 182,251   187,498   206,604   197,394  (3)% (12)% (8)%
    Unimproved land 91,157   104,811   104,662   101,266  (13)% (13)% (10)%
    Developed lots for operative builders 65,134   69,896   60,987   68,087  (7)% 7% (4)%
    Commercial lots 94,334   91,780   93,952   95,958  3% —% (2)%
    Other construction 1,039,192   965,244   938,406   931,000  8% 11% 12%
    Total land, lot, and other construction 1,710,965   1,650,052   1,624,453   1,595,312  4% 5% 7%
    Owner occupied 2,934,724   2,885,798   2,833,469   2,747,152  2% 4% 7%
    Non-owner occupied 3,714,531   3,631,158   3,531,673   3,333,915  2% 5% 11%
    Total commercial real estate 6,649,255   6,516,956   6,365,142   6,081,067  2% 4% 9%
    Commercial and industrial 1,370,393   1,353,919   1,377,888   1,353,248  1% (1)% 1%
    Agriculture 770,378   715,863   735,553   758,394  8% 5% 2%
    1st lien 1,956,205   1,864,294   1,808,502   1,596,878  5% 8% 23%
    Junior lien 46,616   42,397   40,445   34,149  10% 15% 37%
    Total 1-4 family 2,002,821   1,906,691   1,848,947   1,631,027  5% 8% 23%
    Multifamily residential 664,859   649,148   622,185   562,480  2% 7% 18%
    Home equity lines of credit 940,048   893,037   872,899   820,721  5% 8% 15%
    Other consumer 231,519   224,125   220,035   213,943  3% 5% 8%
    Total consumer 1,171,567   1,117,162   1,092,934   1,034,664  5% 7% 13%
    States and political subdivisions 812,688   806,878   797,656   695,396  1% 2% 17%
    Other 214,951   208,085   198,012   169,520  3% 9% 27%
    Total loans receivable, including
    loans held for sale    		 15,989,968   15,533,073   15,259,126   14,433,592  3% 5% 11%
    Less loans held for sale 1 (35,006)  (14,461)  (12,314)  (33,837) 142% 184% 3%
    Total loans receivable$15,954,962  $15,518,612  $15,246,812  $14,399,755  3% 5% 11%

    ______________________________
    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,
    2023    		 Mar 31,
    2023
    		 Dec 31,
    2022
    		 Jun 30,
    2022
    		 Jun 30,
    2023
    		 Jun 30,
    2023
    		 Jun 30,
    2023
    Custom and owner occupied construction$219  220  224  230  219  —  — 
    Pre-sold and spec construction 1,548  1,548  389  389  —  1,548  — 
    Total residential construction 1,767  1,768  613  619  219  1,548  — 
    Land development 118  129  138  197  118  —  — 
    Consumer land or lots 239  112  278  157  106  133  — 
    Unimproved land 43  51  78  107  43  —  — 
    Developed lots for operative builders 608  607  251  260  —  608  — 
    Commercial lots 188  188  —  —  141  47  — 
    Other construction 12,884  12,884  12,884  12,884  12,884  —  — 
    Total land, lot and other construction 14,080  13,971  13,629  13,605  13,292  788  — 
    Owner occupied 2,251  2,682  2,076  4,013  2,132  119  — 
    Non-owner occupied 4,450  4,544  805  1,491  4,450  —  — 
    Total commercial real estate 6,701  7,226  2,881  5,504  6,582  119  — 
    Commercial and Industrial 1,339  2,001  3,326  5,741  827  505  7 
    Agriculture 2,564  2,573  2,574  9,169  2,564  —  — 
    1st lien 2,794  2,015  2,678  2,196  2,686  108  — 
    Junior lien 273  111  166  200  53  220  — 
    Total 1-4 family 3,067  2,126  2,844  2,396  2,739  328  — 
    Multifamily residential —  —  4,535  4,765  —  —  — 
    Home equity lines of credit 1,256  1,225  1,393  1,684  1,045  211  — 
    Other consumer 1,116  1,062  911  466  826  245  45 
    Total consumer 2,372  2,287  2,304  2,150  1,871  456  45 
    Other 132  27  36  17  —  132  — 
    Total$32,022  31,979  32,742  43,966  28,094  3,876  52 


     
    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,
    2023    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022
    Custom and owner occupied construction$324  $1,624  $1,082  $2,046  (80)% (70)% (84)%
    Pre-sold and spec construction 129   —   1,712   602  n/m  (92)% (79)%
    Total residential construction 453   1,624   2,794   2,648  (72)% (84)% (83)%
    Land development 244   946   —   365  (74)% n/m  (33)%
    Consumer land or lots 565   668   442   337  (15)% 28% 68%
    Unimproved land —   —   120   590  n/m  (100)% (100)%
    Developed lots for operative builders —   —   958   —  n/m  (100)% n/m 
    Commercial lots 3,404   —   47   —  n/m  7,143% n/m 
    Other construction 1,114   5,264   209   —  (79)% 433% n/m 
    Total land, lot and other construction 5,327   6,878   1,776   1,292  (23)% 200% 312%
    Owner occupied 1,053   1,783   3,478   1,560  (41)% (70)% (33)%
    Non-owner occupied 8,595   429   496   123  1,903% 1,633% 6,888%
    Total commercial real estate 9,648   2,212   3,974   1,683  336% 143% 473%
    Commercial and industrial 2,096   3,677   3,439   5,969  (43)% (39)% (65)%
    Agriculture 871   947   1,367   851  (8)% (36)% 2%
    1st lien 1,115   3,321   2,174   329  (66)% (49)% 239%
    Junior lien 385   385   190   105  —% 103% 267%
    Total 1-4 family 1,500   3,706   2,364   434  (60)% (37)% 246%
    Multifamily Residential —   201   492   —  (100)% (100) n/m 
    Home equity lines of credit 2,021   2,804   1,182   1,071  (28)% 71% 89%
    Other consumer 1,714   1,598   1,824   1,140  7% (6)% 50%
    Total consumer 3,735   4,402   3,006   2,211  (15)% 24% 69%
    States and political subdivisions —   —   28   7  n/m  (100)% (100)%
    Other 1,233   1,346   1,727   1,493  (8)% (29)% (17)%
    Total$24,863  $24,993  $20,967  $16,588  (1)% 19% 50%

    ______________________________
    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,
    2023    		 Mar 31,
    2023    		 Dec 31,
    2022    		 Jun 30,
    2022    		 Jun 30,
    2023
    		 Jun 30,
    2023
    Custom and owner occupied construction$—  —  17  —  —  — 
    Pre-sold and spec construction (8) (4) (15) (8) —  8 
    Total residential construction (8) (4) 2  (8) —  8 
    Land development (132) —  (34) (21) —  132 
    Consumer land or lots (14) —  (46) (10) —  14 
    Unimproved land —  —  —  (1) —  — 
    Total land, lot and other construction (146) —  (80) (32) —  146 
    Owner occupied (76) (68) 555  229  16  92 
    Non-owner occupied 299  298  (242) (3) 305  6 
    Total commercial real estate 223  230  313  226  321  98 
    Commercial and industrial (18) (382) (70) (458) 523  541 
    Agriculture —  —  (7) (4) —  — 
    1st lien 101  44  (109) (56) 111  10 
    Junior lien 38  (5) (302) (297) 49  11 
    Total 1-4 family 139  39  (411) (353) 160  21 
    Multifamily residential —  —  136  —  —  — 
    Home equity lines of credit 56  (39) (91) (51) 102  46 
    Other consumer 401  125  451  166  531  130 
    Total consumer 457  86  360  115  633  176 
    Other 3,765  1,970  7,572  3,207  5,446  1,681 
    Total$4,412  1,939  7,815  2,693  7,083  2,671 


    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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