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Glacier Bancorp (GBCI)

Filed: 21 Apr 22, 4:32pm

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NEWS RELEASE
April 21, 2022
FOR IMMEDIATE RELEASECONTACT: Randall M. Chesler, CEO
(406) 751-4722
Ron J. Copher, CFO
(406) 751-7706

GLACIER BANCORP, INC. ANNOUNCES
RESULTS FOR THE QUARTER ENDED MARCH 31, 2022

1st Quarter 2022 Highlights:
The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, organically grew $407 million, or 12 percent annualized, in the current quarter.
Net income of $67.8 million for the current quarter, an increase of $17.1 million, or 34 percent, from the prior quarter net income of $50.7 million.
Non-interest expense of $130 million, decreased $3.7 million, or 3 percent, over the prior quarter non-interest expense of $134 million. Excluding the $6.2 million of acquisition-related expenses, non-interest expense was $124 million during the current quarter.
Net interest income, on a tax-equivalent basis, was $190 million in the current quarter. Excluding the PPP loans, net interest income was $187 million which increased $3.2 million, or 2 percent, over the prior quarter net interest income of $184 million.
Net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.20 percent compared to 3.21 percent in the prior quarter. The core net interest margin for the current quarter of 3.07 percent, increased 3 basis points from 3.04 percent in the prior quarter.
Core deposits increased $383 million, or 7 percent annualized, during the current quarter.
The Company completed the core system conversion of the Altabank division. This conversion was the largest and most complex in the Company’s history.
Declared a quarterly dividend of $0.33 per share, an increase of $0.01 per share or 3 percent over the prior quarter regular dividend. The Company has declared 148 consecutive quarterly dividends and has increased the dividend 49 times.






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Financial Summary
 At or for the Three Months ended
(Dollars in thousands, except per share and market data)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Operating results
Net income$67,795 50,709 80,802 
Basic earnings per share$0.61 0.46 0.85 
Diluted earnings per share$0.61 0.46 0.85 
Dividends declared per share1
$0.33 0.42 0.31 
Market value per share
Closing$50.28 56.70 57.08 
High$60.69 60.54 67.35 
Low$49.61 52.62 44.55 
Selected ratios and other data
Number of common stock shares outstanding110,763,316110,687,53395,501,819
Average outstanding shares - basic110,724,655110,687,36595,465,801
Average outstanding shares - diluted110,800,001110,789,63295,546,922
Return on average assets (annualized)1.06 %0.78 %1.73 %
Return on average equity (annualized)8.97 %6.28 %14.12 %
Efficiency ratio57.11 %57.68 %46.75 %
Dividend payout ratio2
54.10 %91.30 %36.47 %
Loan to deposit ratio63.52 %63.24 %70.72 %
Number of full time equivalent employees3,4393,4362,994
Number of locations223224193
Number of ATMs273273250
______________________
1 Includes a special dividend declared of $0.10 per share for the three months ended December 31, 2021.
2 Excluding the special dividend, the dividend payout ratio was 69.57 percent for the three months ended December 31, 2021.
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KALISPELL, Mont., Apr 21, 2022 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $67.8 million for the current quarter, a decrease of $13.0 million, or 16 percent, from the $80.8 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.61 per share, a decrease of 28 percent from the prior year first quarter diluted earnings per share of $0.85. The $13.0 million decrease in first quarter earnings over the prior year first quarter was driven primarily by a $15.4 million decrease in the PPP related income, a $12.6 million decrease in gain on the sale of residential loans, an increase of $7.0 million of credit loss expense, and a $6.1 million increase in acquisition-related expenses. For the quarter, the Company experienced a $28.7 million increase, or 18 percent, in net interest income over the prior year first quarter. “The Glacier team started off the year with strong loan growth and earnings momentum,” said Randy Chesler, President and Chief Executive Officer. “While accelerating inflation and higher interest rates may create some economic headwinds, we remain optimistic about the year.”

Asset Summary
$ Change from
(Dollars in thousands)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Dec 31,
2021
Mar 31,
2021
Cash and cash equivalents$436,805 437,686 878,450 (881)(441,645)
Debt securities, available-for-sale6,535,763 9,170,849 5,853,315 (2,635,086)682,448 
Debt securities, held-to-maturity3,576,941 1,199,164 588,751 2,377,777 2,988,190 
Total debt securities10,112,704 10,370,013 6,442,066 (257,309)3,670,638 
Loans receivable
Residential real estate1,125,648 1,051,883 745,097 73,765 380,551 
Commercial real estate8,865,585 8,630,831 6,474,701 234,754 2,390,884 
Other commercial2,661,048 2,664,190 3,100,584 (3,142)(439,536)
Home equity715,963 736,288 625,369 (20,325)90,594 
Other consumer362,775 348,839 324,178 13,936 38,597 
Loans receivable13,731,019 13,432,031 11,269,929 298,988 2,461,090 
Allowance for credit losses(176,159)(172,665)(156,446)(3,494)(19,713)
Loans receivable, net13,554,860 13,259,366 11,113,483 295,494 2,441,377 
Other assets1,995,955 1,873,580 1,336,553 122,375 659,402 
Total assets$26,100,324 25,940,645 19,770,552 159,679 6,329,772 

Total debt securities of $10.113 billion at March 31, 2022 decreased $257 million, or 2 percent, during the current quarter and increased $3.671 billion, or 57 percent, from the prior year first quarter. During 2020 and 2021, the Company experienced a sizeable increase in the investment portfolio as a result of the excess liquidity from the increase in core deposits. Debt securities represented 39 percent of total assets at March 31, 2022 compared to 40 percent at December 31, 2021 and 33 percent of total assets at March 31, 2021.

During the current quarter, the Company transferred $2.247 billion of available-for-sale (“AFS”) debt securities with a $55.7 million unrealized loss to held-to-maturity (“HTM”) designation after the Company determined it had both the intent and ability to hold such securities until maturity.

The loan portfolio of $13.731 billion at March 31, 2022 increased $299 million, or 2 percent, in the current quarter and increased $2.461 billion, or 22 percent, from the prior year first quarter. Excluding the PPP loans, the loan portfolio increased $407 million, or 12 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $235 million, or 11 percent annualized. Excluding the PPP loans and loans from the acquisition of Altabancorp and its Altabank subsidiary (“Alta”), the loan portfolio
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increased $1.486 billion, or 14 percent, from the prior year first quarter with the largest dollar increase in commercial real estate loans which increased $988 million, or 15 percent.

Credit Quality Summary
At or for the Three Months endedAt or for the Year endedAt or for the Three Months ended
(Dollars in thousands)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Allowance for credit losses
Balance at beginning of period$172,665 158,243 158,243 
Acquisitions— 371 — 
Provision for credit losses4,344 16,380 489 
Charge-offs(2,695)(11,594)(4,246)
Recoveries1,845 9,265 1,960 
Balance at end of period$176,159 172,665 156,446 
Provision for credit losses
Loan portfolio$4,344 16,380 489 
Unfunded loan commitments2,687 6,696 (441)
Total provision for credit losses$7,031 23,076 48 
Other real estate owned$— — 1,839 
Other foreclosed assets43 18 1,126 
Accruing loans 90 days or more past due4,510 17,141 3,733 
Non-accrual loans57,923 50,532 29,887 
Total non-performing assets$62,476 67,691 36,585 
Non-performing assets as a percentage of subsidiary assets0.24 %0.26 %0.19 %
Allowance for credit losses as a percentage of non-performing loans282 %255 %465 %
Allowance for credit losses as a percentage of total loans1.28 %1.29 %1.39 %
Net charge-offs as a percentage of total loans0.01 %0.02 %0.02 %
Accruing loans 30-89 days past due$16,080 50,566 44,616 
Accruing troubled debt restructurings$33,702 34,591 41,345 
Non-accrual troubled debt restructurings$2,501 2,627 4,702 
U.S. government guarantees included in non-performing assets$5,068 4,028 2,778 

Non-performing assets of $62.5 million at March 31, 2022 decreased $5.2 million, or 8 percent, over the prior quarter. Non-performing assets increased $25.9 million, or 71 percent, over the prior year first quarter primarily as a result of the Alta acquisition and two credit relationships. Non-performing assets as a percentage of subsidiary assets at March 31, 2022 was 0.24 percent compared to 0.26 percent in the prior quarter and 0.19 percent in the prior year first quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $16.1 million at March 31, 2022 decreased $34.5 million from the prior quarter with a large portion of the decrease primarily isolated to a single credit relationship. Early stage delinquencies decreased $28.5 million from the prior year first quarter. Early stage delinquencies as a percentage of loans at March 31, 2022 was 0.12 percent, which was a decrease of 26 basis points from prior quarter and an 28 basis points increase from prior year first quarter.

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The current quarter credit loss expense of $7.0 million included $4.3 million of credit loss from loans and $2.7 million of credit loss from unfunded loan commitments.

The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at March 31 2022 was 1.28 percent which was a 1 basis point decrease compared to the prior quarter and an 11 basis points decrease from the prior year first quarter.

Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio
(Dollars in thousands)Provision for Credit Losses LoansNet 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
First quarter 2022$4,344 $850 1.28 %0.12 %0.24 %
Fourth quarter 202119,301 616 1.29 %0.38 %0.26 %
Third quarter 20212,313 152 1.36 %0.23 %0.24 %
Second quarter 2021(5,723)(725)1.35 %0.11 %0.26 %
First quarter 2021489 2,286 1.39 %0.40 %0.19 %
Fourth quarter 2020(1,528)4,781 1.42 %0.20 %0.19 %
Third quarter 20202,869 826 1.42 %0.15 %0.25 %
Second quarter 202013,552 1,233 1.42 %0.22 %0.27 %

The current quarter provision for credit loss expense for loans was $4.3 million which was a decrease of $15.0 million from the prior quarter, which was driven by the prior quarter acquisition of Alta and the requirement to fully fund an allowance for credit loses on loans post-acquisition. Current quarter provision for credit loss expense increased $3.9 million from the prior year first quarter provision for credit loss expense of $489 thousand.

Net charge-offs for the current quarter were $850 thousand compared to $616 thousand for the prior quarter and $2.3 million 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. 

PPP Loans

At or for the Three Months ended
(Dollars in thousands)Mar 31, 2022Dec 31, 2021Mar 31, 2021
PPP interest income$3,348 8,660 13,523 
Deferred compensation on originating PPP loans— — 5,213 
       Total PPP income impact$3,348 8,660 18,736 
Total PPP Loans$60,680 168,677 975,791 
Net remaining fees1,912 5,077 28,134 

The Company continued to actively work with its PPP loan customers to obtain forgiveness from the SBA during the current quarter. The Company received $108 million in PPP loan forgiveness during the current quarter. As of March 31, 2022, the Company had $60.7 million of PPP loans remaining.

In the current quarter, the Company recognized $3.3 million of interest income (including deferred fees and costs) from the PPP loans. The income recognized in the current quarter included $3.0 million acceleration of
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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 March 31, 2022 was $1.9 million, 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.

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)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Dec 31,
2021
Mar 31,
2021
Deposits
Non-interest bearing deposits$7,990,003 7,779,288 6,040,440 210,715 1,949,563 
NOW and DDA accounts5,376,881 5,301,832 4,035,455 75,049 1,341,426 
Savings accounts3,287,521 3,180,046 2,206,592 107,475 1,080,929 
Money market deposit accounts4,044,655 4,014,128 2,817,708 30,527 1,226,947 
Certificate accounts995,147 1,036,077 965,986 (40,930)29,161 
Core deposits, total21,694,207 21,311,371 16,066,181 382,836 5,628,026 
Wholesale deposits3,688 25,878 38,143 (22,190)(34,455)
Deposits, total21,697,895 21,337,249 16,104,324 360,646 5,593,571 
Repurchase agreements958,479 1,020,794 996,878 (62,315)(38,399)
Federal Home Loan Bank advances80,000 — — 80,000 80,000 
Other borrowed funds57,258 44,094 33,452 13,164 23,806 
Subordinated debentures132,661 132,620 132,499 41 162 
Other liabilities239,838 228,266 208,014 11,572 31,824 
Total liabilities$23,166,131 22,763,023 17,475,167 403,108 5,690,964 

Core deposits of $21.694 billion increased $383 million, or 7 percent annualized, during the current quarter and non-interest bearing deposits increased $211 million, or 11 percent annualized, during the current quarter. Excluding the Alta acquisition, core deposits increased $2.354 billion, or 15 percent, from the prior year first quarter. During 2020 and 2021, the Company experienced unprecedented increases in core deposits as a result of increased customer savings and federal stimulus. During the current quarter, the Company continued to experience a slowing of the deposit growth rates. Non-interest bearing deposits were 37 percent of total core deposits at March 31, 2022 and December 31, 2021 compared to 38 percent at March 31, 2021.



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Stockholders’ Equity Summary
$ Change from
(Dollars in thousands, except per share data)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Dec 31,
2021
Mar 31,
2021
Common equity$3,182,002 3,150,263 2,215,465 31,739 966,537 
Accumulated other comprehensive (loss) income(247,809)27,359 79,920 (275,168)(327,729)
Total stockholders’ equity2,934,193 3,177,622 2,295,385 (243,429)638,808 
Goodwill and core deposit intangible, net(1,034,987)(1,037,652)(567,034)2,665 (467,953)
Tangible stockholders’ equity$1,899,206 2,139,970 1,728,351 (240,764)170,855 
Stockholders’ equity to total assets11.24 %12.25 %11.61 %
Tangible stockholders’ equity to total tangible assets7.58 %8.59 %9.00 %
Book value per common share$26.49 28.71 24.03 (2.22)2.46 
Tangible book value per common share$17.15 19.33 18.10 (2.18)(0.95)

Tangible stockholders’ equity of $1.899 billion at Mach 31, 2022 decreased $241 million, or 11 percent, from the prior quarter which was primarily driven by a decrease in the unrealized gain on the AFS debt securities during the current quarter which was driven by an increase in interest rates. Tangible stockholders’ equity at March 31, 2022 increased $171 million, or 10 percent, from the prior year first 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 a decrease in the unrealized gain on the AFS debt securities. Tangible book value per common share of $17.15 at the current quarter end decreased $2.18 per share, or 11 percent, from the prior quarter and decreased $0.95 per share, or 5 percent, from a year ago primarily as a result of the decrease in unrealized gain on AFS debt securities.

Cash Dividends
On March 30, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share, an increase of $0.01 per share or 3 percent over the prior quarter regular dividend. The dividend was payable April 21, 2022 to shareholders of record on April 12, 2022. The dividend was the 148th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

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Operating Results for Three Months Ended March 31, 2022 
Compared to December 31, 2021, and March 31, 2021
Income Summary
 Three Months ended$ Change from
(Dollars in thousands)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Dec 31,
2021
Mar 31,
2021
Net interest income
Interest income$190,516 192,825 161,552 (2,309)28,964 
Interest expense4,961 5,203 4,740 (242)221 
Total net interest income185,555 187,622 156,812 (2,067)28,743 
Non-interest income
Service charges and other fees17,111 17,576 12,792 (465)4,319 
Miscellaneous loan fees and charges3,555 3,745 2,778 (190)777 
Gain on sale of loans9,015 11,431 21,624 (2,416)(12,609)
Gain (loss) on sale of investments446 (693)284 1,139 162 
Other income3,436 2,303 2,643 1,133 793 
Total non-interest income33,563 34,362 40,121 (799)(6,558)
Total income219,118 221,984 196,933 (2,866)22,185 
Net interest margin (tax-equivalent)3.20 %3.21 %3.74 %

Net Interest Income
The current quarter net interest income of $186 million decreased $2.1 million, or 1 percent, compared to the prior quarter and increased $28.7 million, or 18 percent, from the prior year first quarter. The current quarter interest income of $191 million decreased $2.3 million, or 1 percent, over the prior quarter and was driven by the decrease of $5.3 million in interest income from the PPP loans. The current quarter interest income increased $29.0 million over the prior year first quarter primarily due to $30.2 million of interest income from Altabank division which more than offset the $10.2 million decrease in interest income from the PPP loans.

The current quarter interest expense of $5.0 million decreased $242 thousand, or 5 percent, over the prior quarter. Interest expense increased $221 thousand, or 5 percent, over the prior year first quarter primarily the result of an increase in deposit balances. The total cost of funding (including non-interest bearing deposits) was 9 basis points in the current and prior quarters compared to 12 basis points in the prior year first quarter which was driven by the decrease in rates on deposits and borrowings.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.20 percent compared to 3.21 percent in the prior quarter and 3.74 in the prior year first quarter. The core net interest margin, excluding 8 basis points of discount accretion, 1 basis point from non-accrual interest and 4 basis points increase from the PPP loans, was 3.07 percent compared to 3.04 in the prior quarter and 3.56 percent in the prior year first quarter. The core net interest margin increased 3 basis points in the current quarter as a result of increased investment yields that more than offset the decrease in the core loan yields. The core net interest margin decreased 49 basis points from the prior first quarter due to the decrease in core loan yields.

Non-interest Income
Non-interest income for the current quarter totaled $33.6 million which was a decrease of $799 thousand, or 2 percent, over the prior quarter and a decrease of $6.6 million, or 16 percent, over the same quarter last year.
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Gain on the sale of residential loans of $9.0 million for the current quarter decreased $2.4 million, or 21 percent, compared to the prior quarter and decreased $12.6 million, or 58 percent, from the prior year first quarter. The current quarter mortgage activity was lower than prior periods as a result reduced mortgage purchase and refinance activity after the historic highs the Company recently experienced.


Non-interest Expense Summary
 Three Months ended$ Change from
(Dollars in thousands)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Dec 31,
2021
Mar 31,
2021
Compensation and employee benefits$79,074 77,703 62,468 1,371 16,606 
Occupancy and equipment10,964 11,259 9,515 (295)1,449 
Advertising and promotions3,232 3,436 2,371 (204)861 
Data processing7,475 7,468 5,206 2,269 
Other real estate owned and foreclosed
     assets
— 34 12 (34)(12)
Regulatory assessments and insurance3,055 2,657 1,879 398 1,176 
Core deposit intangibles amortization2,664 2,807 2,488 (143)176 
Other expenses23,844 28,683 12,646 (4,839)11,198 
Total non-interest expense$130,308 134,047 96,585 (3,739)33,723 

Total non-interest expense of $130 million for the current quarter decreased $3.7 million, or 2.8 percent, over the prior quarter which was driven by a $2.0 million decrease in acquisition-related expenses during the current quarter. Acquisition-related expenses was $6.2 million in the current quarter compared to $8.2 million in the prior quarter and $104 thousand in the prior year first quarter. “Excluding current quarter acquisition-related expense, non-interest expense was $124 million. For the quarter, the Bank divisions have been excellent in controlling non-interest expenses,” said Ron Copher, Chief Financial Officer.

Total non-interest expense increased $33.7 million, or 35 percent, over the prior year first quarter which was primarily driven by the acquisition of Alta. Excluding $17.5 million of non-interest expense from the Altabank division, $5.2 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $4.9 million, or 5 percent, from the prior year first quarter. The increase includes $1.7 million from compensation and employee benefits driven by the increased number of employees, annual salary increases and $1.0 million increased expenses associated with equity investment in tax credits.

Federal and State Income Tax Expense
Tax expense during the first quarter of 2022 was $14.0 million, an increase of $4.7 million, or 51 percent, compared to the prior quarter and a decrease of $5.5 million, or 28 percent, from the prior year first quarter. The effective tax rate in the current quarter was 17.1 percent compared to 15.5 percent in the prior quarter with the increase driven by higher taxable income. The effective tax rate in the current quarter of 17.1 percent compared to 19.4 percent in the prior year first quarter with the decrease in the current quarter attributable to lower taxable income.

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Efficiency Ratio
The efficiency ratio was 57.11 percent in the current quarter compared to 57.68 percent in the prior quarter and 46.75 in the prior year first quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 54.33 percent in the current quarter compared to 54.09 percent in the prior quarter and 46.70 percent in the prior year first quarter. The increase in the efficiency ratio from the prior year first 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.

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 on 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 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
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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, April 22, 2022. The conference call will be accessible by telephone and webcast. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 8258327. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/oshci2jh. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 8258327 by April 29, 2022.

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).



11


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Assets
Cash on hand and in banks$282,335 198,087 227,745 
Interest bearing cash deposits154,470 239,599 650,705 
Cash and cash equivalents436,805 437,686 878,450 
Debt securities, available-for-sale6,535,763 9,170,849 5,853,315 
Debt securities, held-to-maturity3,576,941 1,199,164 588,751 
Total debt securities10,112,704 10,370,013 6,442,066 
Loans held for sale, at fair value51,284 60,797 118,731 
Loans receivable13,731,019 13,432,031 11,269,929 
Allowance for credit losses(176,159)(172,665)(156,446)
Loans receivable, net13,554,860 13,259,366 11,113,483 
Premises and equipment, net373,123 372,597 322,354 
Other real estate owned and foreclosed assets43 18 2,965 
Accrued interest receivable81,467 76,673 79,331 
Deferred tax asset120,025 27,693 — 
Core deposit intangible, net49,594 52,259 53,021 
Goodwill985,393 985,393 514,013 
Non-marketable equity securities13,217 10,020 10,022 
Bank-owned life insurance167,298 167,671 122,843 
Other assets154,511 120,459 113,273 
Total assets$26,100,324 25,940,645 19,770,552 
Liabilities
Non-interest bearing deposits$7,990,003 7,779,288 6,040,440 
Interest bearing deposits13,707,892 13,557,961 10,063,884 
Securities sold under agreements to repurchase958,479 1,020,794 996,878 
FHLB advances80,000 — — 
Other borrowed funds57,258 44,094 33,452 
Subordinated debentures132,661 132,620 132,499 
Accrued interest payable2,284 2,409 2,590 
Deferred tax liability— — 3,116 
Other liabilities237,554 225,857 202,308 
Total liabilities23,166,131 22,763,023 17,475,167 
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, 117,187,500 shares authorized1,108 1,107 955 
Paid-in capital2,339,405 2,338,814 1,495,438 
Retained earnings - substantially restricted841,489 810,342 719,072 
Accumulated other comprehensive (loss) income(247,809)27,359 79,920 
Total stockholders’ equity2,934,193 3,177,622 2,295,385 
Total liabilities and stockholders’ equity$26,100,324 25,940,645 19,770,552 

12


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 Three Months ended
(Dollars in thousands, except per share data)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Interest Income
Debt securities$38,654 35,711 27,306 
Residential real estate loans15,515 13,728 10,146 
Commercial loans124,556 131,158 113,541 
Consumer and other loans11,791 12,228 10,559 
Total interest income190,516 192,825 161,552 
Interest Expense
Deposits3,464 3,708 3,014 
Securities sold under agreements to
  repurchase
393 467 689 
Federal Home Loan Bank advances12 — — 
Other borrowed funds220 184 174 
Subordinated debentures872 844 863 
Total interest expense4,961 5,203 4,740 
Net Interest Income185,555 187,622 156,812 
Provision for credit losses7,031 27,956 48 
Net interest income after provision for credit losses178,524 159,666 156,764 
Non-Interest Income
Service charges and other fees17,111 17,576 12,792 
Miscellaneous loan fees and charges3,555 3,745 2,778 
Gain on sale of loans9,015 11,431 21,624 
Gain (loss) on sale of debt securities446 (693)284 
Other income3,436 2,303 2,643 
Total non-interest income33,563 34,362 40,121 
Non-Interest Expense
Compensation and employee benefits79,074 77,703 62,468 
Occupancy and equipment10,964 11,259 9,515 
Advertising and promotions3,232 3,436 2,371 
Data processing7,475 7,468 5,206 
Other real estate owned and foreclosed
  assets
— 34 12 
Regulatory assessments and insurance3,055 2,657 1,879 
Core deposit intangibles amortization2,664 2,807 2,488 
Other expenses23,844 28,683 12,646 
Total non-interest expense130,308 134,047 96,585 
Income Before Income Taxes81,779 59,981 100,300 
Federal and state income tax expense13,984 9,272 19,498 
Net Income$67,795 50,709 80,802 

13


Glacier Bancorp, Inc.
Average Balance Sheets
Three Months ended
March 31, 2022December 31, 2021
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$1,140,224 $15,515 5.44 %$1,104,232 $13,728 4.97 %
Commercial loans 1
11,318,767 125,919 4.51 %11,184,129 132,561 4.70 %
Consumer and other loans1,075,102 11,791 4.45 %1,082,341 12,228 4.48 %
Total loans 2
13,534,093 153,225 4.59 %13,370,702 158,517 4.70 %
Tax-exempt debt securities 3
1,723,125 15,664 3.64 %1,693,761 15,552 3.67 %
Taxable debt securities 4
8,883,211 26,465 1.19 %8,709,938 23,555 1.08 %
Total earning assets24,140,429 195,354 3.28 %23,774,401 197,624 3.30 %
Goodwill and intangibles1,036,315 1,031,002 
Non-earning assets756,422 950,923 
Total assets$25,933,166 $25,756,326 
Liabilities
Non-interest bearing deposits$7,859,706 $— — %$7,955,888 $— — %
NOW and DDA accounts5,279,984 845 0.06 %5,120,484 970 0.08 %
Savings accounts3,246,512 332 0.04 %3,133,654 346 0.04 %
Money market deposit accounts4,030,795 1,381 0.14 %3,883,818 1,374 0.14 %
Certificate accounts1,019,595 897 0.36 %1,051,787 1,004 0.38 %
Total core deposits21,436,592 3,455 0.07 %21,145,631 3,694 0.07 %
Wholesale deposits 5
17,191 0.22 %26,104 14 0.21 %
Repurchase agreements970,544 393 0.16 %1,015,369 467 0.18 %
FHLB advances15,000 12 0.33 %— — — %
Subordinated debentures and other borrowed funds179,725 1,092 2.46 %167,545 1,028 2.43 %
Total funding liabilities22,619,052 4,961 0.09 %22,354,649 5,203 0.09 %
Other liabilities249,316 199,207 
Total liabilities22,868,368 22,553,856 
Stockholders’ Equity
Common stock1,107 1,107 
Paid-in capital2,338,887 2,338,013 
Retained earnings847,172 815,726 
Accumulated other comprehensive (loss) income(122,368)47,624 
Total stockholders’ equity3,064,798 3,202,470 
Total liabilities and stockholders’ equity$25,933,166 $25,756,326 
Net interest income (tax-equivalent)$190,393 $192,421 
Net interest spread (tax-equivalent)3.19 %3.21 %
Net interest margin (tax-equivalent)3.20 %3.21 %
______________________________
1 Includes tax effect of $1.4 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2022 and December 31, 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 $3.3 million and $3.2 million on tax-exempt debt securities income for the three months ended March 31, 2022 and December 31, 2021, respectively.
4 Includes tax effect of $225 thousand on federal income tax credits for the three months ended March 31, 2022 and December 31, 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

14


Glacier Bancorp, Inc.
Average Balance Sheets (continued)
Three Months ended
 March 31, 2022March 31, 2021
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$1,140,224 $15,515 5.44 %$893,052 $10,146 4.54 %
Commercial loans 1
11,318,767 125,919 4.51 %9,412,281 114,928 4.95 %
Consumer and other loans1,075,102 11,791 4.45 %949,736 10,559 4.51 %
Total loans 2
13,534,093 153,225 4.59 %11,255,069 135,633 4.89 %
Tax-exempt debt securities 3
1,723,125 15,664 3.64 %1,545,484 14,710 3.81 %
Taxable debt securities 4
8,883,211 26,465 1.19 %4,713,936 15,851 1.35 %
Total earning assets24,140,429 195,354 3.28 %17,514,489 166,194 3.85 %
Goodwill and intangibles1,036,315 568,222 
Non-earning assets756,422 843,305 
Total assets$25,933,166 $18,926,016 
Liabilities
Non-interest bearing deposits$7,859,706 $— — %$5,591,531 $— — %
NOW and DDA accounts5,279,984 845 0.06 %3,830,856 570 0.06 %
Savings accounts3,246,512 332 0.04 %2,092,517 138 0.03 %
Money market deposit accounts4,030,795 1,381 0.14 %2,719,267 865 0.13 %
Certificate accounts1,019,595 897 0.36 %971,584 1,422 0.59 %
Total core deposits21,436,592 3,455 0.07 %15,205,755 2,995 0.08 %
Wholesale deposits 5
17,191 0.22 %38,076 19 0.20 %
Repurchase agreements970,544 393 0.16 %1,001,394 689 0.28 %
FHLB advances15,000 12 0.33 %— — — %
Subordinated debentures and other borrowed funds179,725 1,092 2.46 %165,830 1,037 2.54 %
Total funding liabilities22,619,052 4,961 0.09 %16,411,055 4,740 0.12 %
Other liabilities249,316 193,858 
Total liabilities22,868,368 16,604,913 
Stockholders’ Equity
Common stock1,107 955 
Paid-in capital2,338,887 1,495,138 
Retained earnings847,172 710,137 
Accumulated other comprehensive (loss) income(122,368)114,873 
Total stockholders’ equity3,064,798 2,321,103 
Total liabilities and stockholders’ equity$25,933,166 $18,926,016 
Net interest income (tax-equivalent)$190,393 $161,454 
Net interest spread (tax-equivalent)3.19 %3.73 %
Net interest margin (tax-equivalent)3.20 %3.74 %
______________________________
1 Includes tax effect of $1.4 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended March 31, 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 $3.3 million and $3.0 million on tax-exempt debt securities income for the three months ended March 31, 2022 and 2021, respectively.
4 Includes tax effect of $225 thousand and $255 thousand on federal income tax credits for the three months ended March 31, 2022 and 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
15


Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
 Loans Receivable, by Loan Type% Change from
(Dollars in thousands)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Dec 31,
2021
Mar 31,
2021
Custom and owner occupied construction$265,579 $263,758 $153,226 %73 %
Pre-sold and spec construction258,429 257,568 154,312 — %67 %
Total residential construction524,008 521,326 307,538 1 %70 %
Land development180,270 185,200 103,960 (3)%73 %
Consumer land or lots184,217 173,305 133,409 %38 %
Unimproved land90,498 81,064 62,002 12 %46 %
Developed lots for operative builders61,276 41,840 27,310 46 %124 %
Commercial lots98,403 99,418 61,289 (1)%61 %
Other construction833,218 762,970 604,326 %38 %
Total land, lot, and other construction1,447,882 1,343,797 992,296 8 %46 %
Owner occupied2,675,681 2,645,841 1,973,309 %36 %
Non-owner occupied3,190,519 3,056,658 2,372,644 %34 %
Total commercial real estate5,866,200 5,702,499 4,345,953 3 %35 %
Commercial and industrial1,378,500 1,463,022 1,883,438 (6)%(27)%
Agriculture731,248 751,185 728,579 (3)% %
1st lien1,466,279 1,393,267 1,130,339 %30 %
Junior lien33,438 34,830 35,230 (4)%(5)%
Total 1-4 family1,499,717 1,428,097 1,165,569 5 %29 %
Multifamily residential545,483 545,001 380,172  %43 %
Home equity lines of credit753,362 761,990 664,800 (1)%13 %
Other consumer207,827 207,513 191,152 — %%
Total consumer961,189 969,503 855,952 (1)%12 %
States and political subdivisions659,742 615,251 546,086 7 %21 %
Other168,334 153,147 183,077 10 %(8)%
Total loans receivable, including
  loans held for sale
13,782,303 13,492,828 11,388,660 %21 %
Less loans held for sale 1
(51,284)(60,797)(118,731)(16)%(57)%
Total loans receivable$13,731,019 $13,432,031 $11,269,929 %22 %
______________________________
1 Loans held for sale are primarily 1st lien 1-4 family loans.

16


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)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Mar 31,
2022
Mar 31,
2022
Mar 31,
2022
Custom and owner occupied construction$233 237 246 233   
Land development240 250 330 240 — — 
Consumer land or lots160 309 325 160 — — 
Unimproved land128 124 243 113 15 — 
Commercial lots— — 368 — — — 
Other construction12,884 12,884 — 12,884 — — 
Total land, lot and other construction13,412 13,567 1,266 13,397 15  
Owner occupied3,508 3,918 5,272 3,508 — — 
Non-owner occupied1,526 6,063 4,615 1,526 — — 
Total commercial real estate5,034 9,981 9,887 5,034   
Commercial and Industrial4,252 3,066 6,100 3,366 886  
Agriculture28,801 29,151 8,392 25,641 3,160  
1st lien2,015 2,870 4,303 1,996 19 — 
Junior lien301 136 290 111 190 — 
Total 1-4 family2,316 3,006 4,593 2,107 209  
Multifamily residential6,469 6,548  6,469   
Home equity lines of credit1,416 1,563 3,614 1,321 95 — 
Other consumer543 460 1,017 355 145 43 
Total consumer1,959 2,023 4,631 1,676 240 43 
Other 112 1,470    
Total$62,476 67,691 36,585 57,923 4,510 43 

17


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
 Accruing 30-89 Days Delinquent Loans,  by Loan Type% Change from
(Dollars in thousands)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Dec 31,
2021
Mar 31,
2021
Custom and owner occupied construction$703 $1,243 $963 (43)%(27)%
Pre-sold and spec construction— 443 — (100)%n/m
Total residential construction703 1,686 963 (58)%(27)%
Land development317 — — n/mn/m
Consumer land or lots28 149 215 (81)%(87)%
Unimproved land— 305 334 (100)%(100)%
Developed lots for operative builders142 — — n/mn/m
Commercial lots54 — — n/mn/m
Other construction— 30,788 1,520 (100)%(100)%
Total land, lot and other construction541 31,242 2,069 (98)%(74)%
Owner occupied3,778 1,739 1,784 117 %112 %
Non-owner occupied266 1,558 2,407 (83)%(89)%
Total commercial real estate4,044 3,297 4,191 23 %(4)%
Commercial and industrial3,275 4,732 2,063 (31)%59 %
Agriculture162 459 25,458 (65)%(99)%
1st lien2,963 2,197 5,984 35 %(50)%
Junior lien78 87 18 (10)%333 %
Total 1-4 family3,041 2,284 6,002 33 %(49)%
Home equity lines of credit1,315 1,994 1,223 (34)%%
Other consumer1,097 1,681 519 (35)%111 %
Total consumer2,412 3,675 1,742 (34)%38 %
States and political subdivisions21 1,733 375 (99)%(94)%
Other1,881 1,458 1,753 29 %7 %
Total$16,080 $50,566 $44,616 (68)%(64)%
______________________________
n/m - not measurable


18


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
 Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan Type
Charge-OffsRecoveries
(Dollars in thousands)Mar 31,
2022
Dec 31,
2021
Mar 31,
2021
Mar 31,
2022
Mar 31,
2022
Pre-sold and spec construction(4)(15)(7)— 
Land development(21)(233)(75)— 21 
Consumer land or lots(10)(165)(141)— 10 
Unimproved land— (241)(21)— — 
Total land, lot and other construction(31)(639)(237) 31 
Owner occupied(386)(423)(54)— 386 
Non-owner occupied(2)(357)(505)— 
Total commercial real estate(388)(780)(559) 388 
Commercial and industrial(449)41 80 33 482 
Agriculture(2)(20)(1) 2 
1st lien(9)(331)— 
Junior lien(78)(650)(47)— 78 
Total 1-4 family(87)(981)(42) 87 
Multifamily residential (40)   
Home equity lines of credit(5)(621)25 — 
Other consumer55 236 46 122 67 
Total consumer50 (385)71 122 72 
Other1,761 5,148 2,981 2,540 779 
Total$850 2,329 2,286 2,695 1,845 





















Visit our website at www.glacierbancorp.com
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