Press Release

Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended June 30, 2021

Company Release - 7/22/2021 4:30 PM ET

2nd Quarter 2021 Highlights:

  • Net income of $77.6 million, an increase of $14.2 million, or 22 percent, over the prior year second quarter net income of $63.4 million.
  • Diluted earnings per share of $0.81, an increase of 23 percent from the prior year second quarter diluted earnings per share of $0.66.
  • Total assets crossed $20 billion during the current quarter ending at $20.488 billion at June 30, 2021.
  • The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, increased $249 million, or 10 percent annualized, in the current quarter.
  • Core deposits increased $669 million, or 17 percent annualized, during the current quarter.
  • Early stage delinquencies (accruing loans 30-89 days past due) of $12.1 million at June 30, 2021 decreased $32.5 million from the prior quarter and decreased $13.1 million from the prior year second quarter.
  • An improved economic outlook drove a credit loss benefit of $5.7 million in the current quarter.
  • The Company funded 1,947 new PPP loans for $67.6 million during the current quarter.
  • The Company received $350 million in PPP loan forgiveness from the U.S. Small Business Administration (“SBA”) during the current quarter.
  • Declared a quarterly dividend of $0.32 per share, an increase of $0.01 per share, or 3 percent, over the prior quarter regular dividend. The Company has declared 145 consecutive quarterly dividends and has increased the dividend 48 times.
  • The Company announced the signing of definitive agreement to acquire Altabancorp, the parent company of Altabank, a community bank based in American Fork, Utah, with total assets of $3.522 billion. Altabank, was recently honored with the prestigious Utah Best of State Bank Award in the Community Banking category which marked its second consecutive year for receiving the award. This will be the largest Bank acquisition in the Company’s history and its 24th acquisition since 2000.

First Half 2021 Highlights:

  • Net income of $158 million for the first half of 2021, an increase of $51.6 million, or 48 percent, over the prior year first half of 2020 net income of $107 million.
  • Diluted earnings per share of $1.66, an increase of 47 percent from the prior year first six months diluted earnings per share of $1.13.
  • The loan portfolio, excluding the PPP loans, increased $330 million, or 6 percent annualized, in the first half of 2021.
  • Core deposits increased $1.975 billion, or 27 percent annualized, during the first six months of 2021.
  • The Company funded 8,525 PPP loans in the amount of $555 million during the first half of 2021.
  • The Company received $776 million in PPP loan forgiveness from the U.S. Small Business Administration (“SBA”) during the first half of 2021.
  • Dividends declared in the first half of 2021 of $0.63 per share, an increase of $0.05 per share, or 9 percent, over the prior year dividends of $0.58 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,
2021
  Mar 31,
2021
  Jun 30,
2020
  Jun 30,
2021
  Jun 30,
2020
Operating results                  
Net income $ 77,627     80,802     63,444     158,429     106,783  
Basic earnings per share $ 0.81     0.85     0.67     1.66     1.13  
Diluted earnings per share $ 0.81     0.85     0.66     1.66     1.13  
Dividends declared per share $ 0.32     0.31     0.29     0.63     0.58  
Market value per share                  
Closing $ 55.08     57.08     35.29     55.08     35.29  
High $ 63.05     67.35     46.54     67.35     46.54  
Low $ 52.99     44.55     30.30     44.55     26.66  
Selected ratios and other data                  
Number of common stock shares outstanding 95,507,234   95,501,819   95,409,061   95,507,234   95,409,061
Average outstanding shares - basic 95,505,877   95,465,801   95,405,493   95,485,839   94,346,582
Average outstanding shares - diluted 95,580,904   95,546,922   95,430,403   95,565,591   94,395,930
Return on average assets (annualized) 1.55 %   1.73 %   1.57 %   1.64 %   1.42 %
Return on average equity (annualized) 13.25 %   14.12 %   11.68 %   13.68 %   10.15 %
Efficiency ratio 49.92 %   46.75 %   47.54 %   48.31 %   50.86 %
Dividend payout ratio 39.51 %   36.47 %   43.28 %   37.95 %   51.33 %
Loan to deposit ratio 67.64 %   70.72 %   86.45 %   67.64 %   86.45 %
Number of full time equivalent employees 2,987   2,994   2,954   2,987   2,954
Number of locations 194   193   192   194   192
Number of ATMs 250   250   251   250   251

KALISPELL, Mont., July 22, 2021 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $77.6 million for the current quarter, an increase of $14.2 million, or 22 percent, from the $63.4 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.81 per share, an increase of 23 percent from the prior year second quarter diluted earnings per share of $0.66. “We are pleased to see solid loan and deposit growth with an improving economic outlook,” said Randy Chesler, President and Chief Executive Officer. “The Glacier team has done an excellent job getting back to business and taking care of customers as our markets see increased activity with our summer season in full swing.”

Net income for the six months ended June 30, 2021 was $158.4 million, an increase of $51.6 million, or 48 percent, from the $106.8 million net income from the first six months in the prior year. Diluted earnings per share for the first half of the current year was $1.66 per share, an increase of 47 percent, from the diluted earnings per share of $1.13 for the same period last year.

In May 2021, the Company announced the signing of definitive agreement to acquire Altabancorp, the parent company of Altabank, a community bank based in American Fork, Utah (collectively, “Alta”). Alta provides banking services to individuals and businesses in Utah with twenty-five banking offices from Preston, Idaho to St. George, Utah. As of March 31, 2021, Alta had total assets of $3.522 billion, total loans of $1.797 billion and total deposits of $3.159 billion. The acquisition is subject to required regulatory approvals and other customary conditions of closing and is expected to be completed in the fourth quarter of 2021. Upon closing of the transaction, Alta will become the Company’s seventeenth Bank division.

Asset Summary

                  $ Change from
(Dollars in thousands) Jun 30,
2021
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
Cash and cash equivalents $ 921,207     878,450     633,142     547,610     42,757     288,065     373,597  
Debt securities, available-for-sale 6,147,143     5,853,315     5,337,814     3,533,950     293,828     809,329     2,613,193  
Debt securities, held-to-maturity 1,024,730     588,751     189,836     203,275     435,979     834,894     821,455  
Total debt securities 7,171,873     6,442,066     5,527,650     3,737,225     729,807     1,644,223     3,434,648  
Loans receivable                          
Residential real estate 734,838     745,097     802,508     903,198     (10,259 )   (67,670 )   (168,360 )
Commercial real estate 6,584,322     6,474,701     6,315,895     6,047,692     109,621     268,427     536,630  
Other commercial 2,932,419     3,100,584     3,054,817     3,547,249     (168,165 )   (122,398 )   (614,830 )
Home equity 648,800     625,369     636,405     654,392     23,431     12,395     (5,592 )
Other consumer 337,669     324,178     313,071     300,847     13,491     24,598     36,822  
Loans receivable 11,238,048     11,269,929     11,122,696     11,453,378     (31,881 )   115,352     (215,330 )
Allowance for credit losses (151,448 )   (156,446 )   (158,243 )   (162,509 )   4,998     6,795     11,061  
Loans receivable, net 11,086,600     11,113,483     10,964,453     11,290,869     (26,883 )   122,147     (204,269 )
Other assets 1,308,353     1,336,553     1,378,961     1,330,944     (28,200 )   (70,608 )   (22,591 )
Total assets $ 20,488,033     19,770,552     18,504,206     16,906,648     717,481     1,983,827     3,581,385  

Total debt securities of $7.172 billion at June 30, 2021 increased $730 million, or 11 percent, during the current quarter and increased $3.435 billion, or 92 percent, from the prior year second quarter. The Company continues to purchase debt securities with excess liquidity from the increase in core deposits and SBA forgiveness of PPP loans. Debt securities represented 35 percent of total assets at June 30, 2021 compared to 30 percent of total assets at December 30, 2020 and 22 percent of total assets at June 30, 2020.

The loan portfolio of $11.238 billion at June 30, 2021 decreased $31.9 million, or 28 basis points, in the current quarter. Excluding the PPP loans, the loan portfolio increased $249 million, or 10 percent annualized, during the current quarter with the largest increase in other commercial loans which increased $113 million.

The loan portfolio decreased $215 million, or 2 percent, from the prior year second quarter. Excluding the PPP loans, the loan portfolio increased $517 million, or 5 percent, from the prior year second quarter with the largest increase in commercial real estate loans which increased $537 million, or 9 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,
2021
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
Allowance for credit losses              
Balance at beginning of period $ 158,243       158,243       124,490       124,490    
Impact of adopting CECL             3,720       3,720    
Acquisitions             49       49    
Provision for credit losses (5,234 )     489       37,637       36,296    
Charge-offs (5,946 )     (4,246 )     (13,808 )     (5,235 )  
Recoveries 4,385       1,960       6,155       3,189    
Balance at end of period $ 151,448       156,446       158,243       162,509    
Provision for credit losses              
Loan portfolio $ (5,234 )     489       37,637       36,296    
Unfunded loan commitments (371 )     (441 )     2,128       (182 )  
Total provision for credit losses $ (5,605 )     48       39,765       36,114    
Other real estate owned $ 771       2,965       1,744       4,743    
Accruing loans 90 days or more past due 4,220       3,733       1,725       6,071    
Non-accrual loans 48,050       29,887       31,964       35,157    
Total non-performing assets $ 53,041       36,585       35,433       45,971    
Non-performing assets as a percentage of subsidiary assets 0.26   %   0.19   %   0.19   %   0.27   %
Allowance for credit losses as a percentage of non-performing loans 290   %   465   %   470   %   394   %
Allowance for credit losses as a percentage of total loans 1.35   %   1.39   %   1.42   %   1.42   %
Net charge-offs as a percentage of total loans 0.01   %   0.02   %   0.07   %   0.02   %
Accruing loans 30-89 days past due $ 12,076       44,616       22,721       25,225    
Accruing troubled debt restructurings $ 37,667       41,345       42,003       41,759    
Non-accrual troubled debt restructurings $ 3,179       4,702       3,507       8,204    
U.S. government guarantees included in non-performing assets $ 4,186       2,778       3,011       3,305    

Non-performing assets of $53.0 million at June 30, 2021 increased $16.5 million, over the prior quarter and was primarily isolated to one credit relationship. Non-performing assets increased $7.1 million, or 15 percent, over the prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2021 was 0.26 percent. Excluding the government guaranteed PPP loans, the non-performing assets as a percentage of subsidiary assets at June 30, 2021 was 0.27 percent, an increase of 8 basis points from the prior quarter and 3 basis points decrease from the prior year second quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $12.1 million at June 30, 2021 decreased $32.5 million from the prior quarter with a large portion of the decrease primarily isolated to one credit relationship which moved to non-accrual at June 30, 2021. Early stage delinquencies decreased $13.1 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2021 was 0.11 percent, which was a decrease of 29 basis points from prior quarter and an 11 basis points decrease from prior year second quarter. Excluding PPP loans, early stage delinquencies as a percentage of loans at June 30, 2021 was 0.11 percent, which was a decrease of 32 basis points from prior quarter and a 14 basis points decrease from prior year second quarter.

The current quarter provision for credit loss benefit on loans of $5.7 million was a decrease of $6.2 million from the prior quarter provision for credit loss expense of $489 thousand and a $19.3 million decrease from the prior year second quarter provision for credit loss expense of $13.6 million. The higher levels of provision for credit losses in the prior year second quarter were driven by negative economic forecasts due to COVID-19. The lower levels in the current quarter related to improvement in the economic forecasts.

The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at June 30, 2021 was 1.35 percent which was a 4 basis points decrease compared to the prior quarter. Excluding the PPP loans, the ACL as percentage of loans was 1.43 percent compared to 1.51 percent in the prior quarter and 1.62 percent in 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 (Recoveries)
Charge-Offs
  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 2021 $ (5,723 )   $ (725 )   1.35 %   0.11 %   0.26 %
First quarter 2021 489     2,286     1.39 %   0.40 %   0.19 %
Fourth quarter 2020 (1,528 )   4,781     1.42 %   0.20 %   0.19 %
Third quarter 2020 2,869     826     1.42 %   0.15 %   0.25 %
Second quarter 2020 13,552     1,233     1.42 %   0.22 %   0.27 %
First quarter 2020 22,744     813     1.49 %   0.41 %   0.26 %
Fourth quarter 2019     1,045     1.31 %   0.24 %   0.27 %
Third quarter 2019     3,519     1.32 %   0.31 %   0.40 %

Net recoveries for the current quarter were $725 thousand compared to net charge-offs of $2.3 million for the prior quarter and net charge-offs $1.2 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. 

In response to COVID-19, the Company modified 3,054 for $1.515 billion during the second quarter of 2020. These modifications were primarily short-term payment deferrals under six months. During the second half of 2020, the majority of the modified loan deferral periods expired, and the loans returned to regular payment status. As of June 30, 2021, $46.7 million of the modifications remain in the deferral period. In addition the state of Montana created the Montana Loan Deferment Program for only Montana-based businesses and was implemented only in the third quarter of 2020. Cares Act Funds were used to provide interest payments upfront and directly to lenders on behalf of participating borrowers to convert existing commercial loans to interest only status, resulting in the deferral of principal and interest for a period of six to twelve months. As of June 30, 2021, the Company had $105 million in eligible loans benefiting from this grant program compared to $272 million in the prior quarter.

PPP Loans

  Three Months ended   Six Months ended
(Dollars in thousands) Jun 30, 2021   Mar 31, 2021   Jun 30, 2020   Jun 30, 2021   Jun 30, 2020
PPP interest income $ 10,328     13,523     7,304     23,851     7,304  
Deferred compensation on originating PPP loans 1,522     5,213     8,412     6,735     8,412  
Total PPP income impact $ 11,850     18,736     15,716     30,586     15,716  

 

(Dollars in thousands) Jun 30, 2021   Mar 31, 2021   Dec 31, 2020   Jun 30, 2020
PPP Round 1 loans $ 176,498     489,208     909,173     1,426,746  
PPP Round 2 loans 518,107     486,583          
Total PPP loans 694,605     975,791     909,173     1,426,746  
               
Net remaining fees - Round 1 1,313     6,244     17,605     40,590  
Net remaining fees - Round 2 22,694     21,890          
Total net remaining fees $ 24,007     28,134     17,605     40,590  

The SBA Round 2 PPP program ended in early May after the available funds were fully drawn upon. During the current quarter, the Company originated $67.6 million of Round 2 PPP loans which generated $5.6 million of SBA deferred processing fees and $1.5 million of deferred compensation costs for total net deferred fees of $4.1 million. During the first half of 2021, the Company originated $555 million of Round 2 PPP loans which generated $33.2 million of SBA deferred processing fees and $6.7 million of deferred compensation costs for total net deferred fees of $26.5 million.

During the current year, the SBA processing fees received on Round 2 averaged 5.99 percent which compared to the average of 3.75 percent received on Round 1 in the prior year. The increase in the fees received was the result of an increase in the number of smaller loans which receive a higher percentage fee and the change in the SBA fee schedule for loans under $50 thousand.

The Company continued to submit applications to the SBA for Round 1 PPP loan forgiveness and also began submitting forgiveness applications for Round 2. As of June 30, 2021, the Company had $176 million or 12 percent of the $1.472 billion of Round 1 PPP loans originated in the prior year and had $518 million or 93 percent of the $555 million of Round 2 PPP loans originated in the current year.

The Company recognized $10.3 million of interest income (including deferred fees and costs) from the Round 1 and Round 2 PPP loans in the current quarter. The income recognized in the current quarter included $6.0 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of the PPP loans at June 30, 2021 were $24.0 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) Jun 30,
2021
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
Deposits                          
Non-interest bearing deposits $ 6,307,794     6,040,440     5,454,539     5,043,704     267,354     853,255     1,264,090  
NOW and DDA accounts 4,151,264     4,035,455     3,698,559     3,113,863     115,809     452,705     1,037,401  
Savings accounts 2,346,129     2,206,592     2,000,174     1,756,503     139,537     345,955     589,626  
Money market deposit accounts 2,990,021     2,817,708     2,627,336     2,403,641     172,313     362,685     586,380  
Certificate accounts 939,563     965,986     978,779     995,536     (26,423 )   (39,216 )   (55,973 )
Core deposits, total 16,734,771     16,066,181     14,759,387     13,313,247     668,590     1,975,384     3,421,524  
Wholesale deposits 26,121     38,143     38,142     68,285     (12,022 )   (12,021 )   (42,164 )
Deposits, total 16,760,892     16,104,324     14,797,529     13,381,532     656,568     1,963,363     3,379,360  
Repurchase agreements 995,201     996,878     1,004,583     881,227     (1,677 )   (9,382 )   113,974  
                                         
Federal Home Loan Bank advances             37,963             (37,963 )
Other borrowed funds 33,556     33,452     33,068     32,546     104     488     1,010  
Subordinated debentures 132,540     132,499     139,959     139,917     41     (7,419 )   (7,377 )
Other liabilities 211,889     208,014     222,026     229,748     3,875     (10,137 )   (17,859 )
Total liabilities $ 18,134,078     17,475,167     16,197,165     14,702,933     658,911     1,936,913     3,431,145  

Core deposits of $16.735 billion as of June 30, 2021 increased $669 million, or 17 percent annualized, from the prior quarter and increased $3.422 billion, or 26 percent, from the prior year second quarter. Non-interest bearing deposits of $6.308 billion as of June 30, 2021 increased $267 million, or 4 percent, from the prior quarter and increased $1.264 billion, or 25 percent, from the prior year second quarter. The last fifteen months unprecedented increase in deposits resulted from a number of factors including the PPP loan proceeds deposited by customers, federal stimulus deposits and the increase in customer savings. Non-interest bearing deposits were 38 percent of total core deposits at June 30, 2021 compared to 37 percent of total core deposits at December 31, 2020 and 38 percent at June 30, 2020.

During the prior quarter, the Company paid off $7.5 million of subordinated debt. The low levels of borrowings, including wholesale deposits and Federal Home Loan Bank (“FHLB”) advances, reflected the significant increase in core deposits which funded the asset growth.

Stockholders’ Equity Summary

                  $ Change from
(Dollars in thousands, except per share data) Jun 30,
2021
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
Common equity $ 2,263,513     2,215,465     2,163,951     2,073,806     48,048     99,562     189,707  
Accumulated other comprehensive income 90,442     79,920     143,090     129,909     10,522     (52,648 )   (39,467 )
Total stockholders’ equity 2,353,955     2,295,385     2,307,041     2,203,715     58,570     46,914     150,240  
Goodwill and core deposit intangible, net (564,546 )   (567,034 )   (569,522 )   (574,088 )   2,488     4,976     9,542  
Tangible stockholders’ equity $ 1,789,409     1,728,351     1,737,519     1,629,627     61,058     51,890     159,782  

 

Stockholders’ equity to total assets 11.49 %   11.61 %   12.47 %   13.03 %            
Tangible stockholders’ equity to total tangible assets 8.98 %   9.00 %   9.69 %   9.98 %            
Book value per common share $ 24.65     24.03     24.18     23.10     0.62     0.47     1.55  
Tangible book value per common share $ 18.74     18.10     18.21     17.08     0.64     0.53     1.66  

Tangible stockholders’ equity of $1.789 billion at June 30, 2021 increased $61.1 million, or 4 percent, from the prior quarter and was the result of earnings retention coupled with an increase in other comprehensive income. Tangible stockholders’ equity of at June 30, 2021 increased $160 million, or 10 percent, from the prior year second quarter and was due to earnings retention that more than offset the decrease in other comprehensive income. Tangible book value per common share of $18.74 at the current quarter end increased $0.64 per share, or 4 percent, from the prior quarter and increased $1.66 per share, or 10 percent, from a year ago.

Cash Dividends
On June 30, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.32 per share, an increase of $0.01 per share, or 3 percent, over the prior quarter regular dividend. The dividend was payable July 22, 2021 to shareholders of record on July 13, 2021. The dividend was the 145th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended June 30, 2021 
Compared to March 31, 2021, and June 30, 2020

Income Summary

  Three Months ended   $ Change from
(Dollars in thousands) Jun 30,
2021
  Mar 31,
2021
  Jun 30,
2020
  Mar 31,
2021
  Jun 30,
2020
Net interest income                  
Interest income $ 159,956     161,552     155,404     (1,596 )   4,552  
Interest expense 4,487     4,740     7,185     (253 )   (2,698 )
Total net interest income 155,469     156,812     148,219     (1,343 )   7,250  
Non-interest income                  
Service charges and other fees 13,795     12,792     11,366     1,003     2,429  
Miscellaneous loan fees and charges 2,923     2,778     1,682     145     1,241  
Gain on sale of loans 16,106     21,624     25,858     (5,518 )   (9,752 )
(Loss) gain on sale of investments (61 )   284     128     (345 )   (189 )
Other income 2,759     2,643     2,190     116     569  
Total non-interest income 35,522     40,121     41,224     (4,599 )   (5,702 )
Total income 190,991     196,933     189,443     (5,942 )   1,548  
Net interest margin (tax-equivalent) 3.44 %   3.74 %   4.12 %        

Net Interest Income
The current quarter net interest income of $155 million decreased $1.3 million, or 86 basis points, over the prior quarter and increased $7.3 million, or 5 percent, from the prior year second quarter. The current quarter interest income of $160 million decreased $1.6 million, or 1 percent, compared to the prior quarter due to a decrease in interest income from the PPP loans. The current quarter interest income increased $4.6 million, or 3 percent, over the prior year second quarter due to an increase in interest income from the PPP loans and debt securities. The interest income (which included deferred fees and deferred costs) from the PPP loans was $10.3 million in the current quarter and $13.5 million in the prior quarter and $7.3 million in the prior year second quarter. Excluding the PPP loans, net interest income was $150 million in the current quarter compared to $148 million in the prior quarter and $145 million in the prior year second quarter.

The current quarter interest expense of $4.5 million decreased $253 thousand, or 5 percent, over the prior quarter and decreased $2.7 million, or 38 percent, over the prior year second quarter primarily as result of a decrease in deposit rates along with a shift in funding liabilities to low cost deposits. During the current quarter, the total cost of funding (including non-interest bearing deposits) of 10 basis points declined 2 basis points from the prior quarter and declined 10 basis points from the prior year second quarter with both decreases driven by a decrease in rates in 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 3.44 percent compared to 3.74 percent in the prior quarter and 4.12 in the prior year second quarter. The core net interest margin, excluding 3 basis points of discount accretion, 1 basis point from non-accrual interest and 7 basis points increase from the PPP loans, was 3.33 percent compared to 3.56 in the prior quarter and 4.21 percent in the prior year second quarter. The core net interest margin decreased 23 basis points in the current quarter and decreased 88 basis points from the prior year second quarter due to a decrease in earning asset yields. Earning asset yields have decreased due to the combined impact of the significant increase in the debt securities and the decrease in yields on both loans and debt securities. Debt securities comprised 39.4 percent of the earning assets during the current quarter compared to 35.7 percent in the prior quarter and 24.6 percent in the prior year second quarter.

Non-interest Income
Non-interest income for the current quarter totaled $35.5 million which was a decrease of $4.6 million, or 11 percent, over the prior quarter and a decrease of $5.7 million, or 14 percent, over the same quarter last year. Service charges and other fees increased $1.0 million from the prior quarter and increased $2.4 million from the prior year second quarter as a result of increased customer accounts and transaction activity. Miscellaneous loan fees and charges of $2.9 million in the current quarter increased $1.2 million, or 74 percent, from the prior year second quarter and was primarily driven by increases in loan servicing income and credit card interchange fees due to increased activity.

Gain on the sale of loans of $16.1 million for the current quarter decreased $5.5 million, or 26 percent, compared to the prior quarter and decreased $9.8 million, or 38 percent, from the prior year second quarter. The current quarter mortgage activity was lower than prior periods, but still remained at historically elevated levels.

Non-interest Expense Summary

  Three Months ended   $ Change from
(Dollars in thousands) Jun 30,
2021
  Mar 31,
2021
  Jun 30,
2020
  Mar 31,
2021
  Jun 30,
2020
Compensation and employee benefits $ 64,109     62,468     57,981     1,641     6,128  
Occupancy and equipment 9,208     9,515     9,357     (307 )   (149 )
Advertising and promotions 2,906     2,371     2,138     535     768  
Data processing 5,661     5,206     5,042     455     619  
Other real estate owned 48     12     75     36     (27 )
Regulatory assessments and insurance 1,702     1,879     1,037     (177 )   665  
Core deposit intangibles amortization 2,488     2,488     2,613         (125 )
Other expenses 13,960     12,646     16,521     1,314     (2,561 )
Total non-interest expense $ 100,082     96,585     94,764     3,497     5,318  

Total non-interest expense of $100 million for the current quarter increased $3.5 million, or 4 percent, over the prior quarter and increased $5.3 million, or 6 percent, over the prior year second quarter. Excluding deferred compensation from originating PPP loans, total non-interest expense was $102 million for the current and prior quarter compared to $103 million in the prior year second quarter. Compensation and employee benefits increased $1.6 million, or 3 percent, from the prior quarter and increased $6.1 million from the prior year second quarter which was primarily driven by the decrease in deferred compensation on originating PPP loans. Deferred compensation from originating PPP loans was $1.5 million in the current quarter compared to $5.2 million in the prior quarter and $8.4 million in the prior year second quarter.

Regulatory assessment and insurance increased $665 thousand from the prior year second quarter primarily due to an accrual adjustment for the State of Montana regulatory semi-annual assessment which was waived for the first half of 2020. Other expenses of $14.0 million, increased $1.3 million, or 10 percent, from the prior quarter and decreased $2.6 million, or 16 percent, from the prior year second quarter with such changes driven by acquisition-related expenses. Current quarter other expenses included acquisition-related expenses of $1.1 million in the current quarter compared to $104 thousand in the prior quarter and $3.7 million in the prior year second quarter.

Federal and State Income Tax Expense
Tax expense during the second quarter of 2021 was $18.9 million, a decrease of $563 thousand, or 3 percent, compared to the prior quarter and an increase of $4.6 million, or 32 percent, from the prior year second quarter. The effective tax rate in the current quarter was 19.6 compared to 19.4 in the prior quarter and 18.4 percent in the prior year second quarter.

Efficiency Ratio
The efficiency ratio was 49.92 percent in the current quarter and 46.75 percent in the prior quarter and 47.54 in the prior year second quarter. “Once again, the Bank divisions were excellent in controlling non-interest expenses,” said Ron Copher, Chief Financial Officer. Excluding the impact from the PPP loans, the efficiency ratio would have been 53.53 percent in the current quarter compared to 52.89 percent in the prior quarter. The 64 basis points increase from the prior quarter was due to the decrease in gain on sale of loans in the current quarter. Excluding the impact of PPP loans, the current quarter efficiency ratio was a decrease of 39 basis points from the prior year second quarter efficiency ratio of 53.92 percent.

Operating Results for Six Months Ended June 30, 2021
Compared to June 30, 2020

Income Summary

  Six Months ended        
(Dollars in thousands) Jun 30,
2021
  Jun 30,
2020
  $ Change   % Change
Net interest income              
Interest income $ 321,508     $ 298,269     $ 23,239     8 %
Interest expense 9,227     15,681     (6,454 )   (41 )%
Total net interest income 312,281     282,588     29,693     11 %
Non-interest income              
Service charges and other fees 26,587     25,386     1,201     5 %
Miscellaneous loan fees and charges 5,701     2,967     2,734     92 %
Gain on sale of loans 37,730     37,720     10     %
Gain on sale of investments 223     991     (768 )   (77 )%
Other income 5,402     7,432     (2,030 )   (27 )%
Total non-interest income 75,643     74,496     1,147     2 %
Total Income $ 387,924     $ 357,084     $ 30,840     9 %
Net interest margin (tax-equivalent) 3.58 %   4.23 %        

Net Interest Income
Net-interest income of $312 million for the first half of 2021 increased $29.7 million, or 11 percent, over the same period in 2020. Interest income of $322 million for the first six months of the current year increased $23.2 million, or 8 percent, from the prior year and was primarily attributable to a $19.3 million increase in income from commercial loans, including $16.5 million from the PPP loans. Additionally, interest income on debt securities increased $9.2 million, or 20 percent, over the prior year which resulted from the increased volume of debt securities. Interest expense of $9.2 million for the first half of 2021 decreased $6.5 million, or 41 percent over the prior year primarily as a result of a decrease in the cost of deposits. The total funding cost (including non-interest bearing deposits) for the first six months of 2021 was 11 basis points, which decreased 14 basis points compared to 25 basis points in first six months of 2020.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2021 was 3.58 percent, a 65 basis points decrease from the net interest margin of 4.23 percent for the same period in the prior year. The core net interest margin, excluding 4 basis points of discount accretion, 1 basis point of non-accrual interest and 10 basis points increase from the PPP loans, was 3.43 which was an 83 basis point decrease from the core margin of 4.26 percent in the prior year. Although the Company was successful in reducing the total cost of funding, it was not enough to outpace the decrease in yields on loans and debt securities driven by the current interest rate environment and the shift in the earning asset mix to lower yielding debt securities.

Non-interest Income
Non-interest income of $75.6 million for the first half of 2021 increased $1.1 million, or 2 percent, over the same period last year. Service charges and other fees of $26.6 million for the first six months of 2021 increased $1.2 million, or 5 percent, from prior year as a result of additional fees from increased customer accounts and transaction activity. Miscellaneous loan fees and charges increased $2.7 million, or 92 percent, driven by increases in loan servicing income and credit card interchange fees due to increased activity. Other income of $5.4 million decreased $2.0 million from the prior year and was primarily the result of a gain of $2.4 million on the sale of a former branch building in the first quarter of 2020.

Non-interest Expense Summary

  Six Months ended        
(Dollars in thousands) Jun 30,
2021
  Jun 30,
2020
  $ Change   % Change
Compensation and employee benefits $ 126,577     $ 117,641     $ 8,936     8 %
Occupancy and equipment 18,723     18,576     147     1 %
Advertising and promotions 5,277     4,625     652     14 %
Data processing 10,867     10,324     543     5 %
Other real estate owned 60     187     (127 )   (68 )%
Regulatory assessments and insurance 3,581     2,127     1,454     68 %
Core deposit intangibles amortization 4,976     5,146     (170 )   (3 )%
Other expenses 26,606     31,625     (5,019 )   (16 )%
Total non-interest expense $ 196,667     $ 190,251     $ 6,416     3 %

Total non-interest expense of $197 million for the first half of 2021 increased $6.4 million, or 3 percent, over the prior year first half. Compensation and employee benefits for the first six months of 2021 increased $8.9 million, or 8 percent, from last year due to the increased number of employees from organic growth, increased real estate commissions, increased performance-related compensation and annual salary increases. Regulatory assessment and insurance for the first half of 2021 increased $1.5 million from the prior year same period primarily as a result of the State of Montana waiving the first semi-annual regulatory assessment of 2020 and Small Bank assessment credits applied by the FDIC in the first quarter of 2020. Other expenses of $26.6 million, decreased $5.0 million, or 16 percent, from the prior year, primarily from a decrease in acquisition-related expenses. Acquisition-related expenses were $1.1 million in the current year compared to $6.5 million in the prior year.

Provision for Credit Losses

The provision for credit loss benefit was $5.6 million for the first six months of 2021, including provision for credit loss benefit of $5.2 million on the loan portfolio and credit loss benefit of $371 thousand on unfunded loan commitments. The provision for credit loss benefit of $5.2 million on the loan portfolio in the current year decreased $41.5 million over the provision for credit loss expense of $36.3 million in the prior year which was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the current year were $1.6 million compared to $2.0 million during the prior year.

Federal and State Income Tax Expense
Tax expense of $38.4 million in the first six months of 2021 increased $14.5 million, or 61 percent, over the prior year same period. The effective tax rate for 2021 was 19.5 percent compared to 18.3 percent in the prior year.

Efficiency Ratio
The efficiency ratio was 48.31 percent for the first six months of 2021 compared to 50.86 percent for the same period last year. Excluding the impact from the PPP loans, the efficiency ratio was 53.21 in 2021 compared to 54.21 in 2020 with the improvement driven by an increase in investment interest income and a decrease in deposit 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 management’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 words of similar meaning. 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 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 of 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 Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability;
  • changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties;
  • 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, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
  • ability to complete pending or prospective future acquisitions;
  • costs or difficulties related to the completion and integration of acquisitions;
  • the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
  • reduced demand for banking products and services;
  • the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
  • competition among financial institutions in the Company's markets may increase significantly;
  • the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
  • the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
  • consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
  • dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
  • material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
  • natural disasters, including fires, floods, earthquakes, and other unexpected events;
  • the Company’s success in managing risks involved in the foregoing; and
  • the effects of any reputational damage to the Company resulting from any of the foregoing.

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

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, July 23, 2021. 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 7591544. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/nsp6p5ro. 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 7591544 by July 30, 2021.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. (NASDAQ: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: 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).

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


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

(Dollars in thousands, except per share data) Jun 30,
2021
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
Assets              
Cash on hand and in banks $ 272,363     227,745     227,108     212,681  
Interest bearing cash deposits 648,844     650,705     406,034     334,929  
Cash and cash equivalents 921,207     878,450     633,142     547,610  
Debt securities, available-for-sale 6,147,143     5,853,315     5,337,814     3,533,950  
Debt securities, held-to-maturity 1,024,730     588,751     189,836     203,275  
Total debt securities 7,171,873     6,442,066     5,527,650     3,737,225  
Loans held for sale, at fair value 98,410     118,731     166,572     115,345  
Loans receivable 11,238,048     11,269,929     11,122,696     11,453,378  
Allowance for credit losses (151,448 )   (156,446 )   (158,243 )   (162,509 )
Loans receivable, net 11,086,600     11,113,483     10,964,453     11,290,869  
Premises and equipment, net 315,573     322,354     325,335     326,005  
Other real estate owned 771     2,965     1,744     4,743  
Accrued interest receivable 70,452     79,331     75,497     77,363  
Core deposit intangible, net 50,533     53,021     55,509     60,733  
Goodwill 514,013     514,013     514,013     513,355  
Non-marketable equity securities 10,019     10,022     10,023     11,592  
Bank-owned life insurance 123,035     122,843     123,763     122,388  
Other assets 125,547     113,273     106,505     99,420  
Total assets $ 20,488,033     19,770,552     18,504,206     16,906,648  
Liabilities              
Non-interest bearing deposits $ 6,307,794     6,040,440     5,454,539     5,043,704  
Interest bearing deposits 10,453,098     10,063,884     9,342,990     8,337,828  
Securities sold under agreements to repurchase 995,201     996,878     1,004,583     881,227  
FHLB advances             37,963  
Other borrowed funds 33,556     33,452     33,068     32,546  
Subordinated debentures 132,540     132,499     139,959     139,917  
Accrued interest payable 2,433     2,590     3,305     4,211  
Deferred tax liability 6,463     3,116     23,860     25,213  
Other liabilities 202,993     202,308     194,861     200,324  
Total liabilities 18,134,078     17,475,167     16,197,165     14,702,933  
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 authorized 955     955     954     954  
Paid-in capital 1,496,488     1,495,438     1,495,053     1,492,817  
Retained earnings - substantially restricted 766,070     719,072     667,944     580,035  
Accumulated other comprehensive income 90,442     79,920     143,090     129,909  
Total stockholders’ equity 2,353,955     2,295,385     2,307,041     2,203,715  
Total liabilities and stockholders’ equity $ 20,488,033     19,770,552     18,504,206     16,906,648  


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

  Three Months ended   Six Months ended
(Dollars in thousands, except per share data) Jun 30,
2021
  Mar 31,
2021
  Jun 30,
2020
  Jun 30,
2021
  Jun 30,
2020
Interest Income                  
Debt securities $ 28,730     27,306     25,833     56,036     46,847  
Residential real estate loans 9,541     10,146     12,098     19,687     23,624  
Commercial loans 110,829     113,541     106,343     224,370     205,027  
Consumer and other loans 10,856     10,559     11,130     21,415     22,771  
Total interest income 159,956     161,552     155,404     321,508     298,269  
Interest Expense                  
Deposits 2,804     3,014     4,587     5,818     10,168  
Securities sold under agreements to
repurchase
651     689     908     1,340     1,897  
Federal Home Loan Bank advances         268         614  
Other borrowed funds 177     174     172     351     300  
Subordinated debentures 855     863     1,250     1,718     2,702  
Total interest expense 4,487     4,740     7,185     9,227     15,681  
Net Interest Income 155,469     156,812     148,219     312,281     282,588  
Provision for credit losses (5,653 )   48     16,929     (5,605 )   36,114  
Net interest income after provision for credit losses 161,122     156,764     131,290     317,886     246,474  
Non-Interest Income                  
Service charges and other fees 13,795     12,792     11,366     26,587     25,386  
Miscellaneous loan fees and charges 2,923     2,778     1,682     5,701     2,967  
Gain on sale of loans 16,106     21,624     25,858     37,730     37,720  
(Loss) gain on sale of debt securities (61 )   284     128     223     991  
Other income 2,759     2,643     2,190     5,402     7,432  
Total non-interest income 35,522     40,121     41,224     75,643     74,496  
Non-Interest Expense                  
Compensation and employee benefits 64,109     62,468     57,981     126,577     117,641  
Occupancy and equipment 9,208     9,515     9,357     18,723     18,576  
Advertising and promotions 2,906     2,371     2,138     5,277     4,625  
Data processing 5,661     5,206     5,042     10,867     10,324  
Other real estate owned 48     12     75     60     187  
Regulatory assessments and insurance 1,702     1,879     1,037     3,581     2,127  
Core deposit intangibles amortization 2,488     2,488     2,613     4,976     5,146  
Other expenses 13,960     12,646     16,521     26,606     31,625  
Total non-interest expense 100,082     96,585     94,764     196,667     190,251  
Income Before Income Taxes 96,562     100,300     77,750     196,862     130,719  
Federal and state income tax expense 18,935     19,498     14,306     38,433     23,936  
Net Income $ 77,627     80,802     63,444     158,429     106,783  


Glacier Bancorp, Inc.
Average Balance Sheets

  Three Months ended
  June 30, 2021   March 31, 2021
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 825,467     $ 9,541     4.62 %   $ 893,052     $ 10,146     4.54 %
Commercial loans 1 9,520,603     112,226     4.73 %   9,412,281     114,928     4.95 %
Consumer and other loans 964,415     10,856     4.51 %   949,736     10,559     4.51 %
Total loans 2 11,310,485     132,623     4.70 %   11,255,069     135,633     4.89 %
Tax-exempt debt securities 2 1,548,323     14,740     3.81 %   1,545,484     14,710     3.81 %
Taxable debt securities 4 5,810,800     17,251     1.19 %   4,713,936     15,851     1.35 %
Total earning assets 18,669,608     164,614     3.54 %   17,514,489     166,194     3.85 %
Goodwill and intangibles 565,749             568,222          
Non-earning assets 804,897             843,305          
Total assets $ 20,040,254             $ 18,926,016          
Liabilities                      
Non-interest bearing deposits $ 6,100,872     $     %   $ 5,591,531     $     %
NOW and DDA accounts 4,073,819     600     0.06 %   3,830,856     570     0.06 %
Savings accounts 2,295,334     141     0.02 %   2,092,517     138     0.03 %
Money market deposit accounts 2,921,642     861     0.12 %   2,719,267     865     0.13 %
Certificate accounts 955,694     1,181     0.50 %   971,584     1,422     0.59 %
Total core deposits 16,347,361     2,783     0.07 %   15,205,755     2,995     0.08 %
Wholesale deposits 5 34,301     21     0.24 %   38,076     19     0.20 %
Repurchase agreements 974,744     651     0.27 %   1,001,394     689     0.28 %
FHLB advances         %           %
Subordinated debentures and other borrowed funds 166,002     1,032     2.49 %   165,830     1,037     2.54 %
Total funding liabilities 17,522,408     4,487     0.10 %   16,411,055     4,740     0.12 %
Other liabilities 168,613             193,858          
Total liabilities 17,691,021             16,604,913          
Stockholders’ Equity                      
Common stock 955             955          
Paid-in capital 1,495,886             1,495,138          
Retained earnings 756,561             710,137          
Accumulated other comprehensive income 95,831             114,873          
Total stockholders’ equity 2,349,233             2,321,103          
Total liabilities and stockholders’ equity $ 20,040,254             $ 18,926,016          
Net interest income (tax-equivalent)     $ 160,127             $ 161,454      
Net interest spread (tax-equivalent)         3.44 %           3.73 %
Net interest margin (tax-equivalent)         3.44 %           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 June 30, 2021 and March 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 $3.0 million and $3.0 million on tax-exempt debt securities income for the three months ended June 30, 2021 and March 31, 2021, respectively.
4 Includes tax effect of $255 thousand and $255 thousand on federal income tax credits for the three months ended June 30, 2021 and March 31, 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


Glacier Bancorp, Inc.
Average Balance Sheets (continued)

  Three Months ended
  June 30, 2021   June 30, 2020
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 825,467     $ 9,541     4.62 %   $ 1,048,095     $ 12,098     4.62 %
Commercial loans 1 9,520,603     112,226     4.73 %   9,235,881     107,632     4.69 %
Consumer and other loans 964,415     10,856     4.51 %   957,798     11,130     4.67 %
Total loans 2 11,310,485     132,623     4.70 %   11,241,774     130,860     4.68 %
Tax-exempt debt securities 3 1,548,323     14,740     3.81 %   1,401,603     14,248     4.07 %
Taxable debt securities 4 5,810,800     17,251     1.19 %   2,266,707     14,730     2.60 %
Total earning assets 18,669,608     164,614     3.54 %   14,910,084     159,838     4.31 %
Goodwill and intangibles 565,749             575,296          
Non-earning assets 804,897             797,403          
Total assets $ 20,040,254             $ 16,282,783          
Liabilities                      
Non-interest bearing deposits $ 6,100,872     $     %   $ 4,733,485     $     %
NOW and DDA accounts 4,073,819     600     0.06 %   3,018,706     687     0.09 %
Savings accounts 2,295,334     141     0.02 %   1,687,448     175     0.04 %
Money market deposit accounts 2,921,642     861     0.12 %   2,300,787     1,240     0.22 %
Certificate accounts 955,694     1,181     0.50 %   1,013,188     2,408     0.96 %
Total core deposits 16,347,361     2,783     0.07 %   12,753,614     4,510     0.14 %
Wholesale deposits 5 34,301     21     0.24 %   68,503     77     0.46 %
Repurchase agreements 974,744     651     0.27 %   740,748     908     0.49 %
FHLB advances         %   182,061     268     0.58 %
Subordinated debentures and other borrowed funds 166,002     1,032     2.49 %   172,996     1,422     3.31 %
Total funding liabilities 17,522,408     4,487     0.10 %   13,917,922     7,185     0.21 %
Other liabilities 168,613             180,935          
Total liabilities 17,691,021             14,098,857          
Stockholders’ Equity                      
Common stock 955             954          
Paid-in capital 1,495,886             1,492,230          
Retained earnings 756,561             575,455          
Accumulated other comprehensive income 95,831             115,287          
Total stockholders’ equity 2,349,233             2,183,926          
Total liabilities and stockholders’ equity $ 20,040,254             $ 16,282,783          
Net interest income (tax-equivalent)     $ 160,127             $ 152,653      
Net interest spread (tax-equivalent)         3.44 %           4.10 %
Net interest margin (tax-equivalent)         3.44 %           4.12 %

______________________________
1 Includes tax effect of $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2021 and 2020, 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 $3.0 million and $2.9 million on tax-exempt debt securities income for the three months ended June 30, 2021 and 2020, respectively.
4 Includes tax effect of $255 thousand and $266 thousand on federal income tax credits for the three months ended June 30, 2021 and 2020, 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, 2021   June 30, 2020
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 859,073     $ 19,687     4.58 %   $ 1,014,371     $ 23,624     4.66 %
Commercial loans 1 9,466,763     227,154     4.84 %   8,522,681     207,588     4.90 %
Consumer and other loans 957,116     21,415     4.51 %   942,361     22,771     4.86 %
Total loans 2 11,282,952     268,256     4.79 %   10,479,413     253,983     4.87 %
Tax-exempt debt securities 3 1,546,912     29,450     3.81 %   1,166,102     23,657     4.06 %
Taxable debt securities 4 5,265,398     33,102     1.26 %   2,163,144     28,502     2.64 %
Total earning assets 18,095,262     330,808     3.69 %   13,808,659     306,142     4.46 %
Goodwill and intangibles 566,979             557,363          
Non-earning assets 823,973             743,871          
Total assets $ 19,486,214             $ 15,109,893          
Liabilities                      
Non-interest bearing deposits $ 5,847,608     $     %   $ 4,203,222     $     %
NOW and DDA accounts 3,953,009     1,170     0.06 %   2,846,928     1,602     0.11 %
Savings accounts 2,194,485     279     0.03 %   1,603,129     414     0.05 %
Money market deposit accounts 2,821,014     1,726     0.12 %   2,166,293     2,864     0.27 %
Certificate accounts 963,595     2,603     0.54 %   989,548     5,003     1.02 %
Total core deposits 15,779,711     5,778     0.07 %   11,809,120     9,883     0.17 %
Wholesale deposits 5 36,178     40     0.22 %   62,806     285     0.91 %
Repurchase agreements 987,995     1,340     0.27 %   641,785     1,897     0.59 %
FHLB advances         %   145,366     614     0.84 %
Subordinated debentures and other borrowed funds 165,917     2,069     2.51 %   171,481     3,002     3.52 %
Total funding liabilities 16,969,801     9,227     0.11 %   12,830,558     15,681     0.25 %
Other liabilities 181,166             164,148          
Total liabilities 17,150,967             12,994,706          
Stockholders’ Equity                      
Common stock 955             944          
Paid-in capital 1,495,514             1,454,617          
Retained earnings 733,478             569,203          
Accumulated other comprehensive income 105,300             90,423          
Total stockholders’ equity 2,335,247             2,115,187          
Total liabilities and stockholders’ equity $ 19,486,214             $ 15,109,893          
Net interest income (tax-equivalent)     $ 321,581             $ 290,461      
Net interest spread (tax-equivalent)         3.58 %           4.21 %
Net interest margin (tax-equivalent)         3.58 %           4.23 %

______________________________
1 Includes tax effect of $2.8 million and $2.6 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2021 and 2020, 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 $6.0 million and $4.8 million on tax-exempt debt securities income for the six months ended June 30, 2021 and 2020, respectively.
4 Includes tax effect of $510 thousand and $532 thousand on federal income tax credits for the six months ended June 30, 2021 and 2020, 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,
2021
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
Custom and owner occupied construction $ 158,405     $ 153,226     $ 157,529     $ 177,172     3 %   1 %   (11 )%
Pre-sold and spec construction 163,740     154,312     148,845     161,964     6 %   10 %   1 %
Total residential construction 322,145      307,538      306,374      339,136      %   %   (5 )%
Land development 111,736     103,960     102,930     94,667     7 %   9 %   18 %
Consumer land or lots 138,292     133,409     123,747     120,015     4 %   12 %   15 %
Unimproved land 63,469     62,002     59,500     63,459     2 %   7 %   %
Developed lots for operative builders 27,143     27,310     30,449     26,647     (1 )%   (11 )%   2 %
Commercial lots 64,664     61,289     60,499     60,563     6 %   7 %   7 %
Other construction 554,548     604,326     555,375     477,922     (8 )%   %   16 %
Total land, lot, and other construction 959,852      992,296      932,500      843,273      (3 )%   %   14  %
Owner occupied 2,019,860     1,973,309     1,945,686     1,855,994     2 %   4 %   9 %
Non-owner occupied 2,436,672     2,372,644     2,290,512     2,238,586     3 %   6 %   9 %
Total commercial real estate 4,456,532      4,345,953      4,236,198      4,094,580      %   %   %
Commercial and industrial 1,654,237      1,883,438      1,850,197      2,342,081      (12 )%   (11 )%   (29 )%
Agriculture 746,678      728,579      721,490      714,227      %   %   %
1st lien 1,105,579     1,130,339     1,228,867     1,227,514     (2 )%   (10 )%   (10 )%
Junior lien 38,029     35,230     41,641     47,121     8 %   (9 )%   (19 )%
Total 1-4 family 1,143,608      1,165,569      1,270,508      1,274,635      (2 )%   (10 )%   (10 )%
Multifamily residential 398,499      380,172      391,895      343,870      %   %   16  %
Home equity lines of credit 693,135     664,800     657,626     655,492     4 %   5 %   6 %
Other consumer 201,336     191,152     190,186     181,402     5 %   6 %   11 %
Total consumer 894,471      855,952      847,812      836,894      %   %   %
States and political subdivisions 631,199      546,086      575,647      581,673      16  %   10  %   %
Other 129,237      183,077      156,647      198,354      (29 )%   (17 )%   (35 )%
Total loans receivable, including
loans held for sale
11,336,458     11,388,660     11,289,268     11,568,723     %   %   (2 )%
Less loans held for sale 1 (98,410 )   (118,731 )   (166,572 )   (115,345 )   (17 )%   (41 )%   (15 )%
Total loans receivable $ 11,238,048     $ 11,269,929     $ 11,122,696     $ 11,453,378     %   1 %   (2 )%

______________________________
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
(Dollars in thousands) Jun 30,
2021
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
  Jun 30,
2021
  Jun 30,
2021
  Jun 30,
2021
Custom and owner occupied construction $ 243      246      247      440      243      —      —   
Land development 279      330      342      659      31      —      248   
Consumer land or lots 190      325      201      427      190      —      —   
Unimproved land 178      243      294      663      178      —      —   
Commercial lots 368      368      368      529      —      —      368   
Total land, lot and other construction 1,015      1,266      1,205      2,278      399      —      616   
Owner occupied 3,747      5,272      6,725      9,424      3,716      31      —   
Non-owner occupied 1,892      4,615      4,796      5,482      1,892      —      —   
Total commercial real estate 5,639      9,887      11,521      14,906      5,608      31      —   
Commercial and Industrial 6,046      6,100      6,689      5,039      5,419      597      30   
Agriculture 31,742      8,392      6,313      11,087      28,787      2,955      —   
1st lien 4,186      4,303      5,353      7,634      3,754      432      —   
Junior lien 272      290      301      746      247      25      —   
Total 1-4 family 4,458      4,593      5,654      8,380      4,001      457      —   
Multifamily residential —      —      —      92      —      —      —   
Home equity lines of credit 2,653      3,614      2,939      3,048      2,529      36      88   
Other consumer 542      1,017      572      412      406      99      37   
Total consumer 3,195      4,631      3,511      3,460      2,935      135      125   
Other 703      1,470      293      289      658      45      —   
Total $ 53,041      36,585      35,433      45,971      48,050      4,220      771   


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,
2021
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
Custom and owner occupied construction $     $ 963     $ 788     $     (100 )%   (100 )%   n/m
Pre-sold and spec construction 70                 n/m   n/m   n/m
Total residential construction 70      963      788      —      (93 )%   (91 )%   n/m
Land development         202         n/m   (100 )%   n/m
Consumer land or lots     215     71     248     (100 )%   (100 )%   (100 )%
Unimproved land 307     334     357     411     (8 )%   (14 )%   (25 )%
Developed lots for operative builders         306         n/m   (100 )%   n/m
Commercial lots             153     n/m   n/m   (100 )%
Other construction     1,520             (100 )%   n/m   n/m
Total land, lot and other construction 307      2,069      936      812      (85 )%   (67 )%   (62 )%
Owner occupied 2,243     1,784     3,432     1,512     26 %   (35 )%   48 %
Non-owner occupied 574     2,407     149     966     (76 )%   285 %   (41 )%
Total commercial real estate 2,817      4,191      3,581      2,478      (33 )%   (21 )%   14  %
Commercial and industrial 2,947      2,063      1,814      4,127      43  %   62  %   (29 )%
Agriculture 837      25,458      1,553      12,084      (97 )%   (46 )%   (93 )%
1st lien 736     5,984     6,677     656     (88 )%   (89 )%   12 %
Junior lien 106     18     55     160     489 %   93 %   (34 )%
Total 1-4 family 842      6,002      6,732      816      (86 )%   (87 )%   %
Home equity lines of credit 1,942     1,223     2,840     3,330     59 %   (32 )%   (42 )%
Other consumer 919     519     1,054     739     77 %   (13 )%   24 %
Total consumer 2,861      1,742      3,894      4,069      64  %   (27 )%   (30 )%
States and political subdivisions —      375      2,358      124      (100 )%   (100 )%   (100 )%
Other 1,395      1,753      1,065      715      (20 )%   31  %   95  %
Total $ 12,076     $ 44,616     $ 22,721     $ 25,225     (73 )%   (47 )%   (52 )%

______________________________
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,
2021
  Mar 31,
2021
  Dec 31,
2020
  Jun 30,
2020
  Jun 30,
2021
  Jun 30,
2021
Custom and owner occupied construction $         (9 )            
Pre-sold and spec construction (8 )   (7 )   (24 )   (12 )       8  
Total residential construction (8 )   (7 )   (33 )   (12 )   —       
Land development (77 )   (75 )   (106 )   (50 )       77  
Consumer land or lots (164 )   (141 )   (221 )   (17 )   3     167  
Unimproved land (21 )   (21 )   (489 )   (287 )       21  
Commercial lots         (55 )   (3 )        
Total land, lot and other construction (262 )   (237 )   (871 )   (357 )       265   
Owner occupied (70 )   (54 )   (168 )   (49 )   41     111  
Non-owner occupied (503 )   (505 )   3,030     115         503  
Total commercial real estate (573 )   (559 )   2,862      66      41      614   
Commercial and industrial (218 )   80      1,533      576      262      480   
Agriculture (6 )   (1 )   337      33          10   
1st lien (237 )   5     69         42     279  
Junior lien (475 )   (47 )   (211 )   (129 )       475  
Total 1-4 family (712 )   (42 )   (142 )   (129 )   42      754   
Multifamily residential (40 )   —      (244 )   (43 )   —      40   
Home equity lines of credit (23 )   25     101     24     41     64  
Other consumer 74     46     307     161     241     167  
Total consumer 51      71      408      185      282      231   
Other 3,329      2,981      3,803      1,727      5,312      1,983   
Total $ 1,561     2,286     7,653     2,046     5,946     4,385  

Visit our website at www.glacierbancorp.com  


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Source: Glacier Bancorp, Inc.