Press Release

Glacier Bancorp, Inc. Announces Results for the Quarter and Year Ended December 31, 2020

Company Release - 1/28/2021 4:30 PM ET

4th Quarter 2020 Highlights:

  • Record net income of $81.9 million, an increase of $24.5 million, or 43 percent, over the prior year fourth quarter net income of $57.4 million.
  • Diluted earnings per share of $0.86, an increase of 39 percent from the prior year fourth quarter diluted earnings per share of $0.62.
  • Gain on sale of loans of $26.2 million, increased $16.1 million, or 159 percent, compared to the prior year fourth quarter.
  • Bank loan modifications related to the coronavirus disease of 2019 (“COVID-19”) decreased $371 million from the prior quarter and decreased $1.420 billion from the second quarter to $94.9 million, or 93 basis points of loans excluding the PPP loans.
  • Non-performing assets as a percentage of subsidiary assets was 0.19 percent, which compared to 0.25 percent in the prior quarter and 0.27 percent in the prior year fourth quarter.
  • Core deposits increased $579 million, or 4 percent.
  • The loan portfolio, excluding Payroll Protection Program (“PPP”) loans, organically increased $43.2 million, or 42 basis points, in the current quarter.
  • The Company was active in submitting applications to the SBA for PPP loan forgiveness resulting in a $539 million decrease, or 37 percent, in the PPP loan portfolio and a $14.0 million acceleration of net deferred fees included in interest income.
  • Declared and paid a regular quarterly dividend of $0.30 per share. The Company has declared 143 consecutive quarterly dividends and has increased the dividend 46 times.
  • Declared a special dividend of $0.15 per share.   This was the 17th special dividend the Company has declared.

Year 2020 Highlights:

  • Record net income of $266 million for 2020, an increase of $55.9 million, or 27 percent, over the prior year net income of $211 million.
  • Diluted earnings per share of $2.81, an increase of 18 percent from the prior year diluted earnings per share of $2.38.
  • The Company originated U.S. Small Business Administration (“SBA”) PPP loans for businesses in its communities. The Company originated 16,090 PPP loans in the amount of $1.472 billion.
  • The loan portfolio organically grew $1.158 billion, or 12 percent, during 2020. Excluding PPP loans, the loan portfolio organically increased $249 million, or 3 percent during the current year.
  • Core deposits organically increased $3.4 billion, or 32 percent, during 2020, with non-interest bearing deposit growth of $1.6 billion, or 44 percent.
  • A record year for gain on sale of loans of $99.5 million, which increased $65.4 million, or 192 percent, compared to the prior year.
  • Dividends declared of $1.33 per share, an increase of $0.02 per share, or 2 percent, over the prior year dividends of $1.31.
  • On February 29, 2020, the Company completed the acquisition of State Bank Corp., the parent company of State Bank of Arizona, a community bank based in Lake Havasu City, Arizona with total assets of $745 million.
  • During the current year, S&P Dow Jones Indices selected the Company to transition from the S&P SmallCap 600® to the S&P MidCap 400®.

Financial Highlights  

  At or for the Three Months ended   At or for the Year ended
(Dollars in thousands, except per share and market data) Dec 31,
2020
  Sep 30,
2020
  Jun 30,
2020
  Mar 31,
2020
  Dec 31,
2019
  Dec 31,
2020
  Dec 31,
2019
Operating results                          
Net income $ 81,860     77,757     63,444     43,339     57,410     266,400     210,544  
Basic earnings per share $ 0.86     0.81     0.67     0.46     0.62     2.81     2.39  
Diluted earnings per share $ 0.86     0.81     0.66     0.46     0.62     2.81     2.38  
Dividends declared per share 1 $ 0.45     0.30     0.29     0.29     0.49     1.33     1.31  
Market value per share                          
Closing $ 46.01     32.05     35.29     34.01     45.99     46.01     45.99  
High $ 47.05     38.13     46.54     46.10     46.51     47.05     46.51  
Low $ 31.29     30.05     30.30     26.66     38.99     26.66     37.58  
Selected ratios and other data                          
Number of common stock shares outstanding 95,426,364   95,413,743   95,409,061   95,408,274   92,289,750   95,426,364   92,289,750
Average outstanding shares - basic 95,418,958   95,411,656   95,405,493   93,287,670   92,243,133   94,833,864   88,255,290
Average outstanding shares - diluted 95,492,258   95,442,576   95,430,403   93,359,792   92,365,021   94,932,353   88,385,775
Return on average assets (annualized) 1.78 %   1.80 %   1.57 %   1.25 %   1.67 %   1.62 %   1.64 %
Return on average equity (annualized) 14.27 %   13.73 %   11.68 %   8.52 %   11.61 %   12.15 %   12.01 %
Efficiency ratio 50.34 %   48.05 %   47.54 %   54.65 %   54.90 %   49.97 %   57.78 %
Dividend payout ratio 2 52.33 %   37.04 %   43.28 %   63.04 %   79.03 %   47.33 %   54.81 %
Loan to deposit ratio 76.29 %   82.29 %   86.45 %   88.10 %   88.92 %   76.29 %   88.92 %
Number of full time equivalent employees 2,970   2,946   2,954   2,955   2,826   2,970   2,826
Number of locations 193   193   192   192   181   193   181
Number of ATMs 250   250   251   247   248   250   248

______________________
1 Includes a special dividend declared of $0.15 and $0.20 per share for the three and twelve months ended December 31, 2020 and December 31, 2019, respectively.  
2 Excluding the special dividend, the dividend payout ratio was 34.88 percent and 46.77 percent for the three months ended December 31, 2020 and 2019, respectively and 41.99 percent and 46.44 percent for the twelve months ended December 31, 2020 and 2019, respectively.

KALISPELL, Mont., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $81.9 million for the current quarter, an increase of $24.5 million, or 43 percent, from the $57.4 million of net income for the prior year fourth quarter.   Diluted earnings per share for the current quarter was $0.86 per share, an increase of 39 percent from the prior year fourth quarter diluted earnings per share of $0.62. “While the pandemic has created a difficult time for the country and our Company, the Glacier Team did an outstanding job managing through the challenges and still delivering excellent results for the quarter and full year,” said Randy Chesler, President and Chief Executive Officer. “We are especially pleased with our credit performance which reflects the strong markets in which we operate as well as our conservative lending culture. We are optimistic about the future and the opportunity for continued profitable growth.”

Net income for 2020 was $266 million, an increase of $55.9 million, or 27 percent, from the $211 million net income from the prior year. Diluted earnings per share for the current year was $2.81 per share, an increase of 18 percent, from the diluted earnings per share of $2.38 for last year.

In order to meet the needs of customers impacted by the pandemic, during the second quarter of 2020 the Company modified 3,054 loans in the amount of $1.515 billion primarily with short-term payment deferrals under six months. The majority of these modified loan deferral periods expired and the loans returned to regular payment status with only $94.9 million loans, or 93 basis points, remaining deferred as of December 31, 2020.

In addition, the Company originated SBA PPP loans primarily for small businesses in its communities. The Company originated 16,090 PPP loans in the amount of $1.472 billion during the current year. The majority of the PPP loans are expected to be forgiven by the SBA resulting in the forgiven loan amounts paid to the Company by the SBA. During the current quarter, the PPP loans provided $21.5 million of interest income (including deferred fees and deferred costs) of which $14.0 million was accelerated by the SBA forgiveness.

On February 29, 2020, the Company completed the acquisition of State Bank Corp., the parent company of State Bank of Arizona, a community bank based in Lake Havasu City, Arizona (collectively, “SBAZ”). SBAZ provides banking services to individuals and businesses in Arizona with ten banking offices located in Bullhead City, Cottonwood, Kingman, Lake Havasu City, Phoenix, Prescott Valley and Prescott. Upon closing of the transaction, SBAZ merged into the Company's Foothills Bank division, which expanded the Company's footprint in Arizona to cover all major markets in the state and established it as a leading community bank in Arizona.

The Company’s results of operations and financial condition include the SBAZ acquisition and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:

  State Bank Corp.
(Dollars in thousands) February 29,
2020
Total assets $ 745,420
Debt securities 142,174
Loans receivable 451,702
Non-interest bearing deposits 141,620
Interest bearing deposits 461,669
Borrowings 10,904

 

Asset Summary

              $ Change from
(Dollars in thousands) Dec 31,
2020
  Sep 30,
2020
  Dec 31,
2019
  Sep 30,
2020
  Dec 31,
2019
Cash and cash equivalents $ 633,142     769,879     330,961     (136,737 )   302,181  
Debt securities, available-for-sale 5,337,814     4,125,548     2,575,252     1,212,266     2,762,562  
Debt securities, held-to-maturity 189,836     193,509     224,611     (3,673 )   (34,775 )
Total debt securities 5,527,650     4,319,057     2,799,863     1,208,593     2,727,787  
Loans receivable                  
Residential real estate 802,508     862,614     926,388     (60,106 )   (123,880 )
Commercial real estate 6,315,895     6,201,817     5,579,307     114,078     736,588  
Other commercial 3,054,817     3,593,322     2,094,254     (538,505 )   960,563  
Home equity 636,405     646,850     617,201     (10,445 )   19,204  
Other consumer 313,071     314,128     295,660     (1,057 )   17,411  
Loans receivable 11,122,696     11,618,731     9,512,810     (496,035 )   1,609,886  
Allowance for credit losses (158,243 )   (164,552 )   (124,490 )   6,309     (33,753 )
Loans receivable, net 10,964,453     11,454,179     9,388,320     (489,726 )   1,576,133  
Other assets 1,378,961     1,382,952     1,164,855     (3,991 )   214,106  
Total assets $ 18,504,206     17,926,067     13,683,999     578,139     4,820,207  

Total debt securities of $5.528 billion at December 31, 2020 increased $1.209 billion, or 28 percent, during the current quarter and increased $2.728 billion, or 97 percent, from the prior year end. 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 30 percent of total assets at December 31, 2020 compared to 24 percent of total assets at September 30, 2020 and 20 percent of total assets at December 31, 2019.

The loan portfolio of $11.123 billion decreased $496 million, or 4 percent, during the current quarter which was driven by the SBA forgiveness of the PPP loans. Excluding the decrease in the PPP loans, the loan portfolio increased $43.2 million, or 42 basis points, during the current quarter with the largest increase in commercial real estate loans which increased $114 million, or 2 percent. Excluding the PPP loans and the SBAZ acquisition, the loan portfolio increased $249 million, or 3 percent, from the prior year end with the largest increase in commercial real estate loans which increased $401 million, or 7 percent.

Credit Quality Summary

  At or for the Year
ended
  At or for the Nine
Months ended
  At or for the Year
ended
(Dollars in thousands) Dec 31,
2020
  Sep 30,
2020
  Dec 31,
2019
Allowance for credit losses          
Balance at beginning of period $ 124,490     124,490     131,239  
Impact of adopting CECL 3,720     3,720      
Acquisitions 49     49      
Provision for credit losses 37,637     39,165     57  
Charge-offs (13,808 )   (7,865 )   (15,178 )
Recoveries 6,155     4,993     8,372  
Balance at end of period $ 158,243     164,552     124,490  
Other real estate owned $ 1,744     5,361     5,142  
Accruing loans 90 days or more past due 1,725     2,952     1,412  
Non-accrual loans 31,964     36,350     30,883  
Total non-performing assets $ 35,433     44,663     37,437  
Non-performing assets as a percentage of subsidiary assets 0.19 %   0.25 %   0.27 %
Allowance for credit losses as a percentage of non-performing loans 470 %   419 %   385 %
Allowance for credit losses as a percentage of total loans 1.42 %   1.42 %   1.31 %
Net charge-offs as a percentage of total loans 0.07 %   0.03 %   0.07 %
Accruing loans 30-89 days past due $ 22,721     17,631     23,192  
Accruing troubled debt restructurings $ 42,003     39,999     34,055  
Non-accrual troubled debt restructurings $ 3,507     7,579     3,346  
U.S. government guarantees included in non-performing assets $ 3,011     4,411     1,786  

Non-performing assets of $35.4 million at December 31, 2020 decreased $9.2 million, or 21 percent, over the prior quarter and decreased $2.0 million, or 5 percent, over the prior year fourth quarter. Non-performing assets as a percentage of subsidiary assets at December 31, 2020 was 0.19 percent. Excluding the government guaranteed PPP loans, the non-performing assets as a percentage of subsidiary assets at December 31, 2020 was 0.20 percent, a decrease of 7 basis points from the prior quarter and from the prior year end. Early stage delinquencies (accruing loans 30-89 days past due) of $22.7 million at December 31, 2020 increased $5.1 million from the prior quarter and decreased $471 thousand from the prior year fourth quarter. Early stage delinquencies as a percentage of loans at December 31, 2020 was 0.20 percent, which was an increase of 5 basis points from prior quarter and a 4 basis points decrease from prior year fourth quarter. Excluding PPP loans, early stage delinquencies as a percentage of loans at December 31, 2020 was 0.22 percent, which was an increase of 5 basis points from prior quarter and a 2 basis points decrease from prior year fourth quarter.

During the current quarter, the Company reclassified the current year credit loss expense for unfunded loan commitments from non-interest expense to provision for credit losses in the income statement. The Company believes reporting the credit loss expense on unfunded loan commitments together with credit loss expense on the loan portfolio is more appropriate than reporting credit loss expense on unfunded loan commitments as non-interest expense.   The current quarter provision for credit loss benefit of $1.5 million included a provision for credit loss benefit of $1.5 million on the loan portfolio and a provision for credit loss benefit of $8 thousand on unfunded loan commitments.

The current quarter provision for credit loss benefit on loans was a decrease of $4.4 million from the prior quarter provision for credit loss expense of $2.9 million. The current year provision for credit loss expense on loans was $37.6 million and primarily attributable to provision for credit losses related to COVID-19 and an additional $4.8 million of provision for credit losses related to the SBAZ acquisition. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at December 31, 2020 was 1.42 percent which remained unchanged compared to the prior quarter. Excluding the PPP loans, the ACL as percentage of loans was 1.55 percent compared to 1.62 percent in as of the prior quarter.

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

(Dollars in thousands) Provision for Credit Losses Loans   Net
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
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 %
Second quarter 2019     732   1.46 %   0.43 %   0.41 %
First quarter 2019 57     1,510   1.56 %   0.44 %   0.42 %

Net charge-offs for the current quarter were $4.8 million compared to $826 thousand for the prior quarter and $1.0 million from the same quarter last year.   The current quarter increase was primarily isolated to one credit relationship. The increase in the current quarter loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses. 

PPP Loans

  December 31, 2020
(Dollars in thousands) Number of
PPP Loans
  Amount of
PPP Loans
  Total Loans
Receivable, Net of PPP Loans
  PPP Loans (Amount) as a Percent of Total Loans
Receivable, Net of PPP Loans
Residential real estate   $   802,508   %
Commercial real estate and other commercial              
Real estate rental and leasing 896   37,285   3,484,537   1.07 %
Accommodation and food services 1,200   108,273   657,770   16.46 %
Healthcare 1,389   210,349   835,642   25.17 %
Manufacturing 594   43,798   182,565   23.99 %
Retail and wholesale trade 1,166   99,504   471,282   21.11 %
Construction 1,607   128,101   758,308   16.89 %
Other 4,532   281,863   2,071,435   13.61 %
Home equity and other consumer     949,476   %
Total 11,384   $ 909,173   10,213,523   8.90 %

During the current year, the PPP loan originations generated $55.2 million of SBA processing fees, or an average of 3.75 percent, and $8.9 million of deferred compensation costs for total net deferred fees of $46.3 million. During the current quarter, the Company actively worked with its customers to submit applications to the SBA for PPP loan forgiveness which resulted in a decrease of $539 million, or 37 percent, of the PPP loans.

The Company recognized $38.2 million of interest income (including deferred fees and costs) from the PPP loans in 2020, which included $14.0 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of PPP loans at December 31, 2020 were $17.6 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.

COVID-19 Bank Loan Modifications

  December 31, 2020   September 30, 2020
(Dollars in thousands) Total Loans Receivable, Net of PPP Loans   Amount of Unexpired Original Loan Modifications   Amount of
Re-deferral Loan Modifications
  Amount of
Remaining Loan
Modifications
  Loan Modifications (Amount) as a Percent of Total Loans
Receivable, Net of PPP Loans
  Amount of
Remaining Loan
Modifications
  Loan Modifications (Amount) as a Percent of Total Loans
Receivable, Net of PPP Loans
Residential real estate $ 802,508     4,322         4,322     0.54 %   $ 28,571     3.31 %
Commercial real estate and other commercial                          
Real estate rental and leasing 3,484,537     39,329     3,984     43,313     1.24 %   206,838     6.15 %
Accommodation and food services 657,770     8,151     13,903     22,054     3.35 %   82,182     12.75 %
Healthcare 835,642     1,043     88     1,131     0.14 %   43,253     5.23 %
Manufacturing 182,565     6,806     2,682     9,488     5.20 %   18,559     9.61 %
Retail and wholesale trade 471,282     2,655         2,655     0.56 %   15,853     3.36 %
Construction 758,308     927         927     0.12 %   14,525     1.88 %
Other 2,071,435     216     10,039     10,255     0.50 %   50,588     2.44 %
Home equity and other consumer 949,476     705         705     0.07 %   5,767     0.60 %
Total $ 10,213,523     64,154     30,696     94,850     0.93 %   $ 466,136     4.58 %

In response to COVID-19, the Company modified 3,054 loans in the amount of $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 December 31, 2020, $94.9 million of the modifications, or 93 basis points of the $10.214 billion of loans, net of the PPP loans, remain in the deferral period, a reduction of $371 million in the current quarter and a reduction of $1.420 billion from the $1.515 billion of the original loan modifications in the second quarter.

In addition to the Bank loan modifications presented above, the state of Montana created the Montana Loan Deferment Program for only Montana-based businesses and was implemented only in the third quarter. 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. None of the interest payments are required to be repaid by the borrowers, thus providing a grant to the borrowers. This program was unique to Montana, had minimal qualification requirements, and required that participating lenders modify eligible loans to conform to the program in order for borrowers to qualify for the grant. As of December 31, 2020, the Company had $278 million in eligible loans benefiting from this grant program, which was 2.8 percent of total loans receivable, net of PPP loans. Given the unique nature of the Montana only grant program, the $278 million was not included in the Bank loan modifications presented above.

COVID-19 Higher Risk Industries - Enhanced Monitoring

  December 31, 2020   September 30, 2020
(Dollars in thousands) Enhanced Monitoring Total Loans Receivable, Net of PPP Loans   Percent of Total Loans Receivable, Net of PPP Loans   Amount of Unexpired Original
Loan Modifications
  Amount of
Re-deferral Loan Modifications
  Amount of
Remaining Loan
Modifications
  Loan Modifications (Amount) as a Percent of Enhanced Monitoring Loans
Receivable, Net of PPP Loans
  Amount of
Remaining Loan
Modifications
  Percent of Total Loans Receivable, Net of PPP Loans   Loan Modifications (Amount) as a Percent of Enhanced Monitoring Loans
Receivable, Net of PPP Loans
Hotel and motel $ 428,868   4.20 %   6,074   7,958   14,032   3.27 %   $ 50,770   4.15 %   12.02 %
Restaurant 154,055   1.51 %   2,054   5,945   7,999   5.19 %   19,152   1.37 %   13.78 %
Travel and tourism 22,018   0.22 %         %   5,002   0.19 %   25.36 %
Gaming 14,220   0.14 %         %   1,101   0.14 %   7.59 %
Oil and gas 23,158   0.23 %   494   941   1,435   6.20 %   1,474   0.22 %   6.65 %
Total $ 642,319   6.29 %   8,622   14,844   23,466   3.65 %   $ 77,499   6.08 %   12.54 %


Excluding the PPP loans, the Company has $642 million, or 6 percent, of its total loan portfolio with direct exposure to industries for which it has identified as higher risk, requiring enhanced monitoring. As of December 31, 2020, $23.5 million, or 3.65 percent, of the loans in the higher risk industries have modifications which was a reduction of $54.0 million, or 70 percent, from the $77.5 million of modifications at the end of the prior quarter.   The Company continues to conduct enhanced portfolio reviews and monitoring for potential credit deterioration.

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) Dec 31,
2020
  Sep 30,
2020
  Dec 31,
2019
  Sep 30,
2020
  Dec 31,
2019
Deposits                  
Non-interest bearing deposits $ 5,454,539     5,479,311     3,696,627     (24,772 )   1,757,912  
NOW and DDA accounts 3,698,559     3,300,152     2,645,404     398,407     1,053,155  
Savings accounts 2,000,174     1,864,143     1,485,487     136,031     514,687  
Money market deposit accounts 2,627,336     2,557,294     1,937,141     70,042     690,195  
Certificate accounts 978,779     979,857     958,501     (1,078 )   20,278  
Core deposits, total 14,759,387     14,180,757     10,723,160     578,630     4,036,227  
Wholesale deposits 38,142     119,131     53,297     (80,989 )   (15,155 )
Deposits, total 14,797,529     14,299,888     10,776,457     497,641     4,021,072  
Repurchase agreements 1,004,583     965,668     569,824     38,915     434,759  
Federal Home Loan Bank advances     7,318     38,611     (7,318 )   (38,611 )
Other borrowed funds 33,068     32,967     28,820     101     4,248  
Subordinated debentures 139,959     139,918     139,914     41     45  
Other liabilities 222,026     225,219     169,640     (3,193 )   52,386  
Total liabilities $ 16,197,165     15,670,978     11,723,266     526,187     4,473,899  

Core deposits of $14.759 billion as of December 31, 2020 increased $579 million, or 4 percent, from the prior quarter. Excluding the SBAZ acquisition, core deposits increased $3.433 billion, or 32 percent, from the prior year end, with non-interest bearing deposits increasing $1.616 billion, or 44 percent. The current year significant increase in deposits was attributable to a number of factors including the PPP loan proceeds deposited by customers and the increase in customer savings.   Non-interest bearing deposits were 37 percent of total core deposits at December 31, 2020 compared to 39 percent of total core deposits at September 30, 2020 and 34 percent at December 31, 2019.

Wholesale deposits of $38.1 million at December 31, 2020 decreased $81.0 million, or 68 percent, from the prior quarter and decreased $15.2 million, or 28 percent, from the prior year end. The remaining wholesale deposits at December 31, 2020 had contractual maturities. Federal Home Loan Bank (“FHLB”) advances were paid off as of December 31, 2020 which resulted in a decrease of $7.3 million from the prior quarter and a decrease of $38.6 million from the prior year. The reduction in wholesale deposits and FHLB advances were the result of the significant increase in core deposits which funded loans and debt security growth. Wholesale deposits and FHLB advances will continue to fluctuate as necessary for balance sheet growth and to supplement liquidity needs of the Company.

Stockholders’ Equity Summary

              $ Change from
(Dollars in thousands, except per share data) Dec 31,
2020
  Sep 30,
2020
  Dec 31,
2019
  Sep 30,
2020
  Dec 31,
2019
Common equity $ 2,163,951     2,123,991     1,920,507     39,960     243,444  
Accumulated other comprehensive income 143,090     131,098     40,226     11,992     102,864  
Total stockholders’ equity 2,307,041     2,255,089     1,960,733     51,952     346,308  
Goodwill and core deposit intangible, net (569,522 )   (572,134 )   (519,704 )   2,612     (49,818 )
Tangible stockholders’ equity $ 1,737,519     1,682,955     1,441,029     54,564     296,490  
                               
Stockholders’ equity to total assets   12.47 %   12.58 %   14.33 %            
Tangible stockholders’ equity to total tangible assets   9.69 %   9.70 %   10.95 %            
Book value per common share $ 24.18     23.63     21.25     0.55     2.93  
Tangible book value per common share $ 18.21     17.64     15.61     0.57     2.60  

Tangible stockholders’ equity of $1.738 billion at December 31, 2020 increased $54.6 million, or 3 percent, from the prior quarter and was primarily the result of earnings retention and an increase in other comprehensive income. Tangible stockholders’ equity increased $296 million over the prior year, which was the result of $112 million of Company stock issued for the acquisitions of SBAZ and an increase in other comprehensive income and earnings retention. These increases more than offset the increase in goodwill and core deposit intangible associated with the acquisition. The current year decrease in both the stockholder’s equity to total assets ratio and the tangible stockholders’ equity to total tangible assets ratio was primarily the result of adding $909 million of PPP loans and $2.7 billion in debt securities.   Tangible book value per common share of $18.21 at the current quarter end increased $0.57 per share from the prior quarter and increased $2.60 per share from a year ago.

Cash Dividends
On December 29, 2020, the Company’s Board of Directors declared a special cash dividend of $0.15 per share, the 17th special dividend the Company has declared. The special dividend was payable on January 19, 2021 to shareholders of record on January 8, 2021. On November 18, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.30 per share. The regular quarterly dividend was payable December 17, 2020 to shareholders of record on December 8, 2020. The dividend was the 143rd consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

S&P MidCap 400® Index
During the second quarter of 2020, S&P Dow Jones Indices selected the Company to transition from the S&P SmallCap 600® to the S&P MidCap 400®. S&P MidCap 400® index consists of 400 companies that are chosen with regard to market capitalization, liquidity and industry representations.

Operating Results for Three Months Ended December 31, 2020 
Compared to September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019

Income Summary

  Three Months ended
(Dollars in thousands) Dec 31,
2020
  Sep 30,
2020
  Jun 30,
2020
  Mar 31,
2020
  Dec 31,
2019
Net interest income                  
Interest income $ 171,308     157,487     155,404     142,865     145,281  
Interest expense 5,550     6,084     7,185     8,496     8,833  
Total net interest income 165,758     151,403     148,219     134,369     136,448  
                   
Non-interest income                  
Service charges and other fees 13,713     13,404     11,366     14,020     14,756  
Miscellaneous loan fees and charges 2,293     2,084     1,682     1,285     1,379  
Gain on sale of loans 26,214     35,516     25,858     11,862     10,135  
Gain on sale of investments 124     24     128     863     257  
Other income 2,360     2,639     2,190     5,242     1,890  
Total non-interest income 44,704     53,667     41,224     33,272     28,417  
Total income 210,462     205,070     189,443     167,641     164,865  
                             
Net interest margin (tax-equivalent) 4.03 %   3.92 %   4.12 %   4.36 %   4.45 %
                   
      $ Change from
(Dollars in thousands)     Sep 30,
2020
  Jun 30,
2020
  Mar 31,
2020
  Dec 31,
2019
Net interest income                  
Interest income     $ 13,821     15,904     28,443     26,027  
Interest expense     (534 )   (1,635 )   (2,946 )   (3,283 )
Total net interest income     14,355     17,539     31,389     29,310  
                   
Non-interest income                  
Service charges and other fees     309     2,347     (307 )   (1,043 )
Miscellaneous loan fees and charges     209     611     1,008     914  
Gain on sale of loans     (9,302 )   356     14,352     16,079  
Gain on sale of investments     100     (4 )   (739 )   (133 )
Other income     (279 )   170     (2,882 )   470  
Total non-interest income     (8,963 )   3,480     11,432     16,287  
Total income     $ 5,392     21,019     42,821     45,597  

Net Interest Income
The current quarter net interest income of $166 million increased $14.4 million, or 9 percent, over the prior quarter and increased $29.3 million, or 21 percent, from the prior year fourth quarter. The current quarter interest income of $171 million increased $13.8 million, or 9 percent, compared to the prior quarter and increased $26.0 million, or 18 percent, over the prior year fourth quarter. These increases include increased income from commercial loans (primarily from the PPP loans) and increased income on debt securities.   The interest income (which included deferred fees and deferred costs) from the PPP loans was $21.5 million in the current quarter and $9.3 million in the prior quarter.

The current quarter interest expense of $5.6 million decreased $534 thousand, or 9 percent, over the prior quarter and decreased $3.3 million, or 37 percent, over the prior year fourth quarter primarily as result of a decrease in deposit rates and borrowing interest rates. During the current quarter, the total cost of funding (including non-interest bearing deposits) declined 2 basis points to 14 basis points compared to 16 basis points for the prior quarter primarily as a result of a decrease in rates on both deposits and borrowings. The total cost of funding decreased 16 basis points from the prior year fourth quarter and was attributable to a decrease in rates and a shift from higher cost borrowings to low cost deposits.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.03 percent compared to 3.92 percent in the prior quarter. The core net interest margin, excluding 3 basis points of discount accretion and 24 basis points increase from the PPP loans, was 3.76 percent compared to 4.02 in the prior quarter and 4.33 percent in the prior year fourth quarter. The core net interest margin decreased 11 basis points in the current quarter and decreased 57 basis points from the prior year fourth quarter due to a decrease in earning asset yields that outpaced the decrease in the total cost of funding along with a shift in the earning asset mix from higher yielding loans to lower yielding debt securities.

Non-interest Income
Non-interest income for the current quarter totaled $44.7 million which was a decrease of $9.0 million, or 17 percent, over the prior quarter and an increase of $16.3 million, or 57 percent, over the same quarter last year. Service charges and other fees decreased $1.0 million from the prior year fourth quarter due to the decreased overdraft activity. Gain on the sale of loans of $26.2 million for the current quarter decreased $9.3 million, or 26 percent, compared to the prior quarter as a result of seasonal decreases, although remained at elevated levels as a result of the current low interest rate environment.   Gain on sale of loans increased $16.1 million, or 159 percent, from the prior year fourth quarter due to the significant increase in purchase and refinance activity driven by the decrease in interest rates.

Non-interest Expense Summary

  Three Months ended
(Dollars in thousands) Dec 31,
2020
  Sep 30,
2020
  Jun 30,
2020
  Mar 31,
2020
  Dec 31,
2019
Compensation and employee benefits $ 70,540     64,866     57,981     59,660     55,543  
Occupancy and equipment 9,728     9,369     9,357     9,219     9,149  
Advertising and promotions 2,797     2,779     2,138     2,487     2,747  
Data processing 5,211     5,597     5,042     5,282     4,972  
Other real estate owned 550     186     75     112     609  
Regulatory assessments and insurance 1,034     1,495     1,037     1,090     45  
Core deposit intangibles amortization 2,612     2,612     2,613     2,533     2,566  
Other expenses 18,715     16,469     16,521     15,104     19,621  
                               
Total non-interest expense $ 111,187     103,373     94,764     95,487     95,252  
                   
      $ Change from
(Dollars in thousands)     Sep 30,
2020
  Jun 30,
2020
  Mar 31,
2020
  Dec 31,
2019
Compensation and employee benefits     $ 5,674     12,559     10,880     14,997  
Occupancy and equipment     359     371     509     579  
Advertising and promotions     18     659     310     50  
Data processing     (386 )   169     (71 )   239  
Other real estate owned     364     475     438     (59 )
Regulatory assessments and insurance     (461 )   (3 )   (56 )   989  
Core deposit intangibles amortization         (1 )   79     46  
Other expenses     2,246     2,194     3,611     (906 )
                             
Total non-interest expense     $ 7,814     16,423     15,700     15,935  

Total non-interest expense of $111 million for the current quarter increased $7.8 million, or 8 percent, over the prior quarter and increased $16.0 million, or 17 percent, over the prior year fourth quarter. Compensation and employee benefits increased by $5.7 million, or 9 percent, from the prior quarter which was primarily driven by the increase in accrued expenses for employee benefits due to strong financial performance. Compensation and employee benefits increased $15.0 million, or 27 percent, from the prior year fourth quarter primarily due to an increased number of employees driven by acquisitions and organic growth, increased real estate commissions and increased performance-related compensation. Occupancy and equipment expense increased $579 thousand, or 6 percent, over the prior year fourth quarter primarily as a result of increased costs from acquisitions. Regulatory assessment and insurance decreased $461 thousand from the prior quarter primarily due to an accrual adjustment in the current quarter for waiver of the State of Montana regulatory semi-annual assessment for the second half of 2020. Regulatory assessment and insurance increased $989 thousand from the prior year fourth quarter primarily due to $1.3 million in Small Bank Assessment credits applied in the prior year fourth quarter which more than offset the decrease in the current quarter waiver from the State of Montana assessment.  

Other expenses of $18.7 million, increased $2.2 million, or 14 percent, from the prior quarter and decreased $906 thousand, or 5 percent, from the prior year fourth quarter. Current quarter other expenses included acquisition-related expenses of $501 thousand compared to $793 thousand in the prior quarter and $4.4 million in the prior year fourth quarter.

Federal and State Income Tax Expense
Tax expense during the fourth quarter of 2020 was $19.0 million, an increase of $196 thousand, or 1 percent, compared to the prior quarter and an increase of $6.7 million, or 55 percent, from the prior year fourth quarter. The effective tax rate in the current and prior quarter was 19 percent compared to 18 percent in the prior year fourth quarter.

Efficiency Ratio
The efficiency ratio was 50.34 percent in the current quarter and 48.05 percent in the prior quarter. Excluding the impact from the PPP loans, the efficiency ratio would have been 55.96 percent in the current quarter, which was a 545 basis points increase from the prior quarter efficiency ratio of 50.51 percent and was the result of the decrease in gain on sale of loans and the increase in non-interest expense during the current quarter. Excluding the current year impact from the PPP loans, the current quarter efficiency ratio of 55.96 was an increase of 106 basis points the prior year fourth quarter efficiency ratio of 54.90 and was primarily the result of the increase in compensation costs that outpaced the increase in gain on sale of loans and net interest income.

Operating Results for Year Ended December 31, 2020
Compared to December 31, 2019

Income Summary

  Year ended        
(Dollars in thousands) Dec 31,
2020
  Dec 31,
2019
  $ Change   % Change
Net interest income              
Interest income $ 627,064     $ 546,177     $ 80,887     15 %
Interest expense 27,315     42,773     (15,458 )   (36 )%
Total net interest income 599,749     503,404     96,345     19 %
               
Non-interest income              
Service charges and other fees 52,503     67,934     (15,431 )   (23 )%
Miscellaneous loan fees and charges 7,344     5,313     2,031     38 %
Gain on sale of loans 99,450     34,064     65,386     192 %
Gain on sale of investments 1,139     14,415     (13,276 )   (92 )%
Other income 12,431     9,048     3,383     37 %
Total non-interest income 172,867     130,774     42,093     32 %
Total Income $ 772,616     $ 634,178     $ 138,438     22 %
                   
Net interest margin (tax-equivalent) 4.09 %   4.39 %        

Net Interest Income
Net-interest income of $600 million for 2020 increased $96.3 million, or 19 percent, over 2019. Interest income of $627 million for the current year increased $80.9 million, or 15 percent, from the prior year and was primarily attributable to a $67.4 million increase in income from commercial loans, including $38.2 million from the PPP loans. Additionally, interest income on debt securities increased $14.1 million, or 17 percent, over the prior year which resulted from the increased volume of debt securities. Interest expense of $27.3 million for 2020 decreased $15.5 million, or 36 percent over the prior year primarily as a result of decreased higher cost FHLB advances combined with the decrease in the cost of deposits and borrowings. The total funding cost (including non-interest bearing deposits) for 2020 was 19 basis points, which decreased 20 basis points compared to 39 basis points in 2019.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 2020 was 4.09 percent, a 30 basis points decrease from the net interest margin of 4.39 percent for 2019. The core net interest margin, excluding 3 basis points of discount accretion, 1 basis point of non-accrual interest was 4.05 compared to a core margin of 4.30 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. For the year, the 24 basis points increase in the fourth quarter net interest margin from the PPP loans offset the combined 24 basis points decrease in the net interest margin from the PPP loans that occurred in the second and third quarters of the current year.

Non-interest Income
Non-interest income of $173 million for 2020 increased $42.1 million, or 32 percent, over last year. Service charges and other fees of $52.5 million for 2020 decreased $15.4 million, or 23 percent, from prior year as a result of a decrease in overdraft activity and the impact of the Durbin Amendment which outpaced the additional fees from increased customer accounts. As of July 1, 2019, the Company became subject to the Durbin Amendment which established limits on the amount of interchange fees that can be charged to merchants for debit card processing. Miscellaneous loan fees increased $2.0 million, or 38 percent, driven by increased activity primarily in residential real estate. Gain on the sale of loans of $99.5 million for 2020, increased $65.4 million, or 192 percent, compared to the prior year as a result of a significant increase in purchase and refinance activity driven by the decrease in interest rates. Other income increased $3.4 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.

During the prior year third quarter, the Company terminated $260 million notional pay-fixed interest rate swaps and corresponding debt along with the sale of $308 million of available-for-sale debt securities. Sale of the investment securities resulted in a gain of $13.8 million in the prior year third quarter. Offsetting the gain was a $10 million loss recognized on the early termination of the interest swaps and a $3.5 million write-off of deferred prepayment penalties on FHLB borrowings.

Non-interest Expense Summary

  Year ended        
(Dollars in thousands) Dec 31,
2020
  Dec 31,
2019
  $ Change   % Change
Compensation and employee benefits $ 253,047     $ 222,753     $ 30,294     14 %
Occupancy and equipment 37,673     34,497     3,176     9 %
Advertising and promotions 10,201     10,621     (420 )   (4 )%
Data processing 21,132     17,392     3,740     22 %
Other real estate owned 923     1,105     (182 )   (16 )%
Regulatory assessments and insurance 4,656     3,771     885     23 %
Loss on termination of hedging activities     13,528     (13,528 )   (100 )%
Core deposit intangibles amortization 10,370     8,485     1,885     22 %
Other expenses 66,809     62,775     4,034     6 %
Total non-interest expense $ 404,811     $ 374,927     $ 29,884     8 %

Total non-interest expense of $405 million for 2020 increased $29.9 million, or 8 percent, over the prior year. Compensation and employee benefits for 2020 increased $30.3 million, or 14 percent, from last year due to the increased number of employees from acquisitions and organic growth, increased real estate commissions, increased performance-related compensation and annual salary increases which more than offset the $8.9 million deferral of compensation cost from the PPP loans in the current year and the $5.4 million of stock compensation expense in the prior year from the Heritage Bancorp acquisition. Occupancy and equipment expense for current year increased $3.2 million, or 9 percent from the prior year primarily from increased cost from acquisitions. Data processing expense for the current year increased $3.7 million, or 22 percent, from the prior year as a result of the increased costs from acquisitions along with increased investment in technology infrastructure. Regulatory assessment and insurance for the current year increased $885 thousand from the prior quarter primarily due to $2.5 million in Small Bank Assessment credits applied in 2019 that more than offset the $530 thousand in Small Bank credits applied in 2020 and the current year waiver of the State of Montana regulatory assessment. Other expenses of $66.8 million, increased $4.0 million, or 6 percent, from the prior year, including $1.9 million for third party consulting regarding improvements in technology, product and service offerings.   Acquisition-related expenses were $7.8 million in the current year compared to $8.5 million in the prior year.

The prior year $13.5 million loss on termination of hedging activities included a $3.5 million write-off of the remaining unamortized deferred prepayment penalties on FHLB debt and a $10 million loss on the termination of pay-fixed interest rate swaps with notional amount of $260 million in the prior year third quarter.

Provision for Credit Losses
The provision for credit losses was $39.8 million for 2020, including provision for credit losses of $37.6 million on the loan portfolio and $2.1 million of provision for credit losses on unfunded loan commitments. The provision for credit losses of $37.6 million on the loan portfolio in the current year increased $37.6 million over the $57 thousand prior year provision for credit losses on the loan portfolio which was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the current year were $7.6 million compared to $6.8 million during the prior year.

Federal and State Income Tax Expense
Tax expense of $61.6 million in 2020 increased $13.0 million, or 27 percent, over the prior year same period. The effective tax rate for each year was 19 percent.

Efficiency Ratio
The efficiency ratio was 49.97 percent for 2020. Excluding the impact from the PPP loans, the efficiency ratio would have been 53.70 percent. The prior year efficiency ratio was 57.78 and excluding the impact from the termination of the cash flow hedges and the accelerated stock compensation expense, the efficiency ratio would have been 54.79 percent. Excluding these adjustments, the current year efficiency ratio decreased 109 basis points from the prior year efficiency ratio which was driven primarily by the combined increased on gain on sale of loans and the increased net interest income that more than offset the decrease in service fee income from the Durbin Amendment and increased compensation 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 recently adopted CARES Act addressing the economic effects of the COVID-19 pandemic, 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, January 29, 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 6941139. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/ghaqi5ja. 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 6941139 by February 12, 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) Dec 31,
2020
  Sep 30,
2020
  Dec 31,
2019
Assets          
Cash on hand and in banks $ 227,108     249,245     198,639  
Federal funds sold     590      
Interest bearing cash deposits 406,034     520,044     132,322  
Cash and cash equivalents 633,142     769,879     330,961  
Debt securities, available-for-sale 5,337,814     4,125,548     2,575,252  
Debt securities, held-to-maturity 189,836     193,509     224,611  
Total debt securities 5,527,650     4,319,057     2,799,863  
Loans held for sale, at fair value 166,572     147,937     69,194  
Loans receivable 11,122,696     11,618,731     9,512,810  
Allowance for credit losses (158,243 )   (164,552 )   (124,490 )
Loans receivable, net 10,964,453     11,454,179     9,388,320  
Premises and equipment, net 325,335     326,925     310,309  
Other real estate owned 1,744     5,361     5,142  
Accrued interest receivable 75,497     91,393     56,047  
Deferred tax asset         2,037  
Core deposit intangible, net 55,509     58,121     63,286  
Goodwill 514,013     514,013     456,418  
Non-marketable equity securities 10,023     10,366     11,623  
Bank-owned life insurance 123,763     123,095     109,428  
Other assets 106,505     105,741     81,371  
Total assets $ 18,504,206     17,926,067     13,683,999  
Liabilities          
Non-interest bearing deposits $ 5,454,539     5,479,311     3,696,627  
Interest bearing deposits 9,342,990     8,820,577     7,079,830  
Securities sold under agreements to repurchase 1,004,583     965,668     569,824  
FHLB advances     7,318     38,611  
Other borrowed funds 33,068     32,967     28,820  
Subordinated debentures 139,959     139,918     139,914  
Accrued interest payable 3,305     3,951     4,686  
Deferred tax liability 23,860     17,227      
Other liabilities 194,861     204,041     164,954  
Total liabilities 16,197,165     15,670,978     11,723,266  
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 954     954     923  
Paid-in capital 1,495,053     1,493,928     1,378,534  
Retained earnings - substantially restricted 667,944     629,109     541,050  
Accumulated other comprehensive income 143,090     131,098     40,226  
Total stockholders’ equity 2,307,041     2,255,089     1,960,733  
Total liabilities and stockholders’ equity $ 18,504,206     17,926,067     13,683,999  


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

  Three Months ended   Year ended
(Dollars in thousands, except per share data) Dec 31,
2020
  Sep 30,
2020
  Dec 31,
2019
  Dec 31,
2020
  Dec 31,
2019
Interest Income                  
Debt securities $ 27,388     25,381     20,904     99,616     85,504  
Residential real estate loans 11,176     11,592     12,554     46,392     46,899  
Commercial loans 121,956     109,514     100,301     436,497     369,107  
Consumer and other loans 10,788     11,000     11,522     44,559     44,667  
Total interest income 171,308     157,487     145,281     627,064     546,177  
Interest Expense                  
Deposits 3,500     3,952     6,101     17,620     23,280  
Securities sold under agreements to repurchase 818     886     1,007     3,601     3,694  
Federal Home Loan Bank advances 49     70     86     733     9,023  
Other borrowed funds 173     173     92     646     215  
Subordinated debentures 1,010     1,003     1,547     4,715     6,561  
Total interest expense 5,550     6,084     8,833     27,315     42,773  
Net Interest Income 165,758     151,403     136,448     599,749     503,404  
Provision for credit losses (1,535 )   5,186         39,765     57  
Net interest income after provision for credit losses 167,293     146,217     136,448     559,984     503,347  
Non-Interest Income                  
Service charges and other fees 13,713     13,404     14,756     52,503     67,934  
Miscellaneous loan fees and charges 2,293     2,084     1,379     7,344     5,313  
Gain on sale of loans 26,214     35,516     10,135     99,450     34,064  
Gain on sale of debt securities 124     24     257     1,139     14,415  
Other income 2,360     2,639     1,890     12,431     9,048  
Total non-interest income 44,704     53,667     28,417     172,867     130,774  
Non-Interest Expense                  
Compensation and employee benefits 70,540     64,866     55,543     253,047     222,753  
Occupancy and equipment 9,728     9,369     9,149     37,673     34,497  
Advertising and promotions 2,797     2,779     2,747     10,201     10,621  
Data processing 5,211     5,597     4,972     21,132     17,392  
Other real estate owned 550     186     609     923     1,105  
Regulatory assessments and insurance 1,034     1,495     45     4,656     3,771  
Loss on termination of hedging activities                 13,528  
Core deposit intangibles amortization 2,612     2,612     2,566     10,370     8,485  
Other expenses 18,715     16,469     19,621     66,809     62,775  
Total non-interest expense 111,187     103,373     95,252     404,811     374,927  
Income Before Income Taxes 100,810     96,511     69,613     328,040     259,194  
Federal and state income tax expense 18,950     18,754     12,203     61,640     48,650  
Net Income $ 81,860     77,757     57,410     266,400     210,544  


Glacier Bancorp, Inc.
Average Balance Sheets

  Three Months ended
  December 31, 2020   September 30, 2020
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 984,942     $ 11,176     4.54 %   $ 1,010,503     $ 11,592     4.59 %
Commercial loans 1 9,535,228     123,327     5.15 %   9,636,631     110,847     4.58 %
Consumer and other loans 951,379     10,788     4.51 %   957,284     11,000     4.57 %
Total loans 2 11,471,549     145,291     5.04 %   11,604,418     133,439     4.57 %
Tax-exempt investment securities 2 1,511,725     14,659     3.88 %   1,379,577     13,885     4.03 %
Taxable investment securities 4 3,838,896     15,957     1.66 %   2,809,545     14,568     2.07 %
Total earning assets 16,822,170     175,907     4.16 %   15,793,540     161,892     4.08 %
Goodwill and intangibles 570,771             572,759          
Non-earning assets 853,518             794,165          
Total assets $ 18,246,459             $ 17,160,464          
Liabilities                      
Non-interest bearing deposits $ 5,498,744     $     %   $ 5,171,984     $     %
NOW and DDA accounts 3,460,923     607     0.07 %   3,218,536     642     0.08 %
Savings accounts 1,935,476     162     0.03 %   1,804,438     166     0.04 %
Money market deposit accounts 2,635,653     1,052     0.16 %   2,453,659     1,161     0.19 %
Certificate accounts 984,100     1,629     0.66 %   981,385     1,936     0.78 %
Total core deposits 14,514,896     3,450     0.09 %   13,630,002     3,905     0.11 %
Wholesale deposits 5 100,329     50     0.20 %   86,852     47     0.22 %
FHLB advances 6,540     49     2.93 %   21,273     70     1.30 %
Repurchase agreements and other borrowed funds 1,142,199     2,001     0.70 %   1,049,002     2,062     0.78 %
Total funding liabilities 15,763,964     5,550     0.14 %   14,787,129     6,084     0.16 %
Other liabilities 199,771             120,294          
Total liabilities 15,963,735             14,907,423          
Stockholders’ Equity                      
Common stock 954             954          
Paid-in capital 1,494,422             1,493,353          
Retained earnings 657,906             622,099          
Accumulated other comprehensive income 129,442             136,635          
Total stockholders’ equity 2,282,724             2,253,041          
Total liabilities and stockholders’ equity $ 18,246,459             $ 17,160,464          
Net interest income (tax-equivalent)     $ 170,357             $ 155,808      
Net interest spread (tax-equivalent)         4.02 %           3.92 %
Net interest margin (tax-equivalent)         4.03 %           3.92 %

______________________________
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 December 31, 2020 and September 30, 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 $2.8 million on tax-exempt debt securities income for the three months ended December 31, 2020 and September 30, 2020, respectively.
4 Includes tax effect of $266 thousand and $266 thousand on federal income tax credits for the three months ended December 31, 2020 and September 30, 2020, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.


Glacier Bancorp, Inc.
Average Balance Sheets (continued)

  Three Months ended
  December 31, 2020   December 31, 2019
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 984,942     $ 11,176     4.54 %   $ 1,010,174     $ 12,554     4.97 %
Commercial loans 1 9,535,228     123,327     5.15 %   7,617,702     101,619     5.29 %
Consumer and other loans 951,379     10,788     4.51 %   911,942     11,522     5.01 %
Total loans 2 11,471,549     145,291     5.04 %   9,539,818     125,695     5.23 %
Tax-exempt debt securities 3 1,511,725     14,659     3.88 %   853,524     8,983     4.21 %
Taxable debt securities 4 3,838,896     15,957     1.66 %   2,064,755     14,033     2.72 %
Total earning assets 16,822,170     175,907     4.16 %   12,458,097     148,711     4.74 %
Goodwill and intangibles 570,771             521,405          
Non-earning assets 853,518             667,505          
Total assets $ 18,246,459             $ 13,647,007          
Liabilities                      
Non-interest bearing deposits $ 5,498,744     $     %   $ 3,741,622     $     %
NOW and DDA accounts 3,460,923     607     0.07 %   2,596,029     1,159     0.18 %
Savings accounts 1,935,476     162     0.03 %   1,486,387     265     0.07 %
Money market deposit accounts 2,635,653     1,052     0.16 %   1,947,102     1,710     0.35 %
Certificate accounts 984,100     1,629     0.66 %   958,133     2,609     1.08 %
Total core deposits 14,514,896     3,450     0.09 %   10,729,273     5,743     0.21 %
Wholesale deposits 5 100,329     50     0.20 %   72,539     358     1.96 %
FHLB advances 6,540     49     2.93 %   15,601     86     2.18 %
Repurchase agreements and other borrowed funds 1,142,199     2,001     0.70 %   703,391     2,646     1.49 %
Total funding liabilities 15,763,964     5,550     0.14 %   11,520,804     8,833     0.30 %
Other liabilities 199,771             164,285          
Total liabilities 15,963,735             11,685,089          
Stockholders’ Equity                      
Common stock 954             922          
Paid-in capital 1,494,422             1,377,013          
Retained earnings 657,906             538,620          
Accumulated other comprehensive income 129,442             45,363          
Total stockholders’ equity 2,282,724             1,961,918          
Total liabilities and stockholders’ equity $ 18,246,459             $ 13,647,007          
Net interest income (tax-equivalent)     $ 170,357             $ 139,878      
Net interest spread (tax-equivalent)         4.02 %           4.44 %
Net interest margin (tax-equivalent)         4.03 %           4.45 %

______________________________
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 December 31, 2020 and 2019, 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 $1.8 million on tax-exempt debt securities income for the three months ended December 31, 2020 and 2019, respectively.
4 Includes tax effect of $266 thousand and $276 thousand on federal income tax credits for the three months ended December 31, 2020 and 2019, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.


Glacier Bancorp, Inc.
Average Balance Sheets (continued)

  Year ended
  December 31, 2020   December 31, 2019
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average Yield/
Rate
Assets                      
Residential real estate loans $ 1,006,001     $ 46,392     4.61 %   $ 965,553     $ 46,899     4.86 %
Commercial loans 1 9,057,210     441,762     4.88 %   7,084,753     373,888     5.28 %
Consumer and other loans 948,379     44,559     4.70 %   881,726     44,667     5.07 %
Total loans 2 11,011,590     532,713     4.84 %   8,932,032     465,454     5.21 %
Tax-exempt debt securities 3 1,306,640     52,201     4.00 %   917,454     38,195     4.16 %
Taxable debt securities 4 2,746,855     59,027     2.15 %   1,935,215     56,258     2.91 %
Total earning assets 15,065,085     643,941     4.27 %   11,784,701     559,907     4.75 %
Goodwill and intangibles 564,603             410,561          
Non-earning assets 784,075             611,788          
Total assets $ 16,413,763             $ 12,807,050          
Liabilities                      
Non-interest bearing deposits $ 4,772,386     $     %   $ 3,323,641     $     %
NOW and DDA accounts 3,094,675     2,849     0.09 %   2,447,037     4,196     0.17 %
Savings accounts 1,737,272     742     0.04 %   1,420,682     1,022     0.07 %
Money market deposit accounts 2,356,508     5,077     0.22 %   1,787,149     5,385     0.30 %
Certificate accounts 986,126     8,568     0.87 %   923,840     9,257     1.00 %
Total core deposits 12,946,967     17,236     0.13 %   9,902,349     19,860     0.20 %
Wholesale deposits 5 78,283     384     0.49 %   137,442     3,420     2.49 %
FHLB advances 79,277     733     0.91 %   265,712     9,023     3.35 %
Repurchase agreements and other borrowed funds 955,205     8,962     0.94 %   625,242     10,470     1.67 %
Total funding liabilities 14,059,732     27,315     0.19 %   10,930,745     42,773     0.39 %
Other liabilities 162,079             123,002          
Total liabilities 14,221,811             11,053,747          
Stockholders’ Equity                      
Common stock 949             883          
Paid-in capital 1,474,359             1,208,772          
Retained earnings 604,796             510,601          
Accumulated other comprehensive income 111,848             33,047          
Total stockholders’ equity 2,191,952             1,753,303          
Total liabilities and stockholders’ equity $ 16,413,763             $ 12,807,050          
Net interest income (tax-equivalent)     $ 616,626             $ 517,134      
Net interest spread (tax-equivalent)         4.08 %           4.36 %
Net interest margin (tax-equivalent)         4.09 %           4.39 %

______________________________
1 Includes tax effect of $5.3 million and $4.8 million on tax-exempt municipal loan and lease income for the year ended December 31, 2020 and 2019, 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 $10.5 million and $7.8 million on tax-exempt debt securities income for the year ended December 31, 2020 and 2019, respectively.
4 Includes tax effect of $1.1 million and $1.1 million on federal income tax credits for the year ended December 31, 2020 and 2019, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.


Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification

  Loans Receivable, by Loan Type % Change from
(Dollars in thousands) Dec 31,
2020
  Sep 30,
2020
  Dec 31,
2019
  Sep 30,
2020
  Dec 31,
2019
Custom and owner occupied construction $ 157,529     $ 166,195     $ 143,479     (5 )%   10 %
Pre-sold and spec construction 148,845     157,242     180,539     (5 )%   (18 )%
Total residential construction 306,374      323,437      324,018      (5 )%   (5 )%
Land development 102,930     96,814     101,592     6 %   1 %
Consumer land or lots 123,747     122,019     125,759     1 %   (2 )%
Unimproved land 59,500     64,770     62,563     (8 )%   (5 )%
Developed lots for operative builders 30,449     30,871     17,390     (1 )%   75 %
Commercial lots 60,499     62,445     46,408     (3 )%   30 %
Other construction 555,375     537,105     478,368     3 %   16 %
Total land, lot, and other construction 932,500      914,024      832,080      2 %   12 %
Owner occupied 1,945,686     1,889,512     1,667,526     3 %   17 %
Non-owner occupied 2,290,512     2,259,062     2,017,375     1 %   14 %
Total commercial real estate 4,236,198      4,148,574      3,684,901      2 %   15 %
Commercial and industrial 1,850,197      2,308,710      991,580      (20 )%   87 %
Agriculture 721,490      747,145      701,363      (3 )%   3 %
1st lien 1,228,867     1,256,111     1,186,889     (2 )%   4 %
Junior lien 41,641     43,355     53,571     (4 )%   (22 )%
Total 1-4 family 1,270,508      1,299,466      1,240,460      (2 )%   2 %
Multifamily residential 391,895      359,030      342,498      9 %   14 %
Home equity lines of credit 657,626     651,546     617,900     1 %   6 %
Other consumer 190,186     191,761     174,643     (1 )%   9 %
Total consumer 847,812      843,307      792,543      1 %   7 %
States and political subdivisions 575,647      617,624      533,023      (7 )%   8 %
Other 156,647      205,351      139,538      (24 )%   12 %
Total loans receivable, including loans held for sale 11,289,268     11,766,668     9,582,004     (4 )%   18 %
Less loans held for sale 1 (166,572 )   (147,937 )   (69,194 )   13 %   141 %
Total loans receivable $ 11,122,696     $ 11,618,731     $ 9,512,810     (4 )%   17 %

______________________________
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) Dec 31,
2020
  Sep 30,
2020
  Dec 31,
2019
  Dec 31,
2020
  Dec 31,
2020
  Dec 31,
2020
Custom and owner occupied construction $ 247     249     185     247          
Pre-sold and spec construction         743              
Total residential construction 247      249      928      247      —      —   
Land development 342     450     852     93         249  
Consumer land or lots 201     223     330     74         127  
Unimproved land 294     417     1,181     214     34     46  
Commercial lots 368     682     529             368  
Total land, lot and other construction 1,205      1,772      2,892      381      34      790   
Owner occupied 6,725     9,077     4,608     6,605         120  
Non-owner occupied 4,796     4,879     8,229     4,607     189      
Total commercial real estate 11,521      13,956      12,837      11,212      189      120   
Commercial and industrial 6,689      8,571      5,297      5,982      152      555   
Agriculture 6,313      8,972      2,288      6,164      149      —   
1st lien 5,353     6,559     8,671     4,419     934      
Junior lien 301     986     569     301          
Total 1-4 family 5,654      7,545      9,240      4,720      934      —   
Multifamily residential —      —      201      —      —      —   
Home equity lines of credit 2,939     2,903     2,618     2,531     135     273  
Other consumer 572     407     837     466     100     6  
Total consumer 3,511      3,310      3,455      2,997      235      279   
Other 293      288      299      261      32      —   
Total $ 35,433     44,663     37,437     31,964     1,725     1,744  


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

  Accruing 30-89 Days Delinquent Loans,  by Loan Type % Change from
(Dollars in thousands) Dec 31,
2020
  Sep 30,
2020
  Dec 31,
2019
  Sep 30,
2020
  Dec 31,
2019
Custom and owner occupied construction $ 788     $ 448     $ 637     76 %   24 %
Pre-sold and spec construction         148     n/m   (100 )%
Total residential construction 788      448      785      76 %   —  %
Land development 202             n/m   n/m
Consumer land or lots 71     220     672     (68 )%   (89 )%
Unimproved land 357     381     558     (6 )%   (36 )%
Developed lots for operative builders 306         2     n/m   15,200 %
Total land, lot and other construction 936      601      1,232      56 %   (24 )%
Owner occupied 3,432     3,163     3,052     9 %   12 %
Non-owner occupied 149     1,157     1,834     (87 )%   (92 )%
Total commercial real estate 3,581      4,320      4,886      (17 )%   (27 )%
Commercial and industrial 1,814      2,354      2,036      (23 )%   (11 )%
Agriculture 1,553      2,795      4,298      (44 )%   (64 )%
1st lien 6,677     2,589     4,711     158 %   42 %
Junior lien 55     738     624     (93 )%   (91 )%
Total 1-4 family 6,732      3,327      5,335      102 %   26 %
Home equity lines of credit 2,840     2,200     2,352     29 %   21 %
Other consumer 1,054     789     1,187     34 %   (11 )%
Total consumer 3,894      2,989      3,539      30 %   10 %
States and political subdivisions 2,358      —      —      n/m   n/m
Other 1,065      797      1,081      34 %   (1 )%
Total $ 22,721     $ 17,631     $ 23,192     29 %   (2 )%

______________________________
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) Dec 31,
2020
  Sep 30,
2020
  Dec 31,
2019
  Dec 31,
2020
  Dec 31,
2020
Custom and owner occupied construction $ (9 )   (9 )   98      —       
Pre-sold and spec construction (24 )   (19 )   (18 )   —      24   
Total residential construction (33 )   (28 )   80      —      33   
Land development (106 )   (63 )   (30 )   —      106   
Consumer land or lots (221 )   (217 )   (138 )       228   
Unimproved land (489 )   (489 )   (311 )   —      489   
Developed lots for operative builders —      —      (18 )   —      —   
Commercial lots (55 )   (5 )   (6 )   22      77   
Other construction —      —      (142 )   —      —   
Total land, lot and other construction (871 )   (774 )   (645 )   29      900   
Owner occupied (168 )   (82 )   (479 )   57      225   
Non-owner occupied 3,030      246      2,015      3,086      56   
Total commercial real estate 2,862      164      1,536      3,143      281   
Commercial and industrial 1,533      740      1,472      2,278      745   
Agriculture 337      309      21      345       
1st lien 69      (27 )   (12 )   127      58   
Junior lien (211 )   (169 )   (303 )   27      238   
Total 1-4 family (142 )   (196 )   (315 )   154      296   
Multifamily residential (244 )   (244 )   —      —      244   
Home equity lines of credit 101      79      19      350      249   
Other consumer 307      233      603      604      297   
Total consumer 408      312      622      954      546   
Other 3,803      2,589      4,035      6,905      3,102   
Total $ 7,653      2,872      6,806      13,808      6,155   


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Source: Glacier Bancorp, Inc.