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

October 20, 2022 at 4:30 PM EDT
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3rd Quarter 2022 Highlights:

  • Net income was $79.3 million for the current quarter, an increase of $2.9 million, or 5 percent, from the prior quarter net income of $76.4 million. Net income for the current quarter increased $3.7 million, or 5 percent, over the prior year third quarter net income of $75.6 million as a result of organic and acquisition growth.
  • The loan portfolio, excluding the Paycheck Protection Program (“PPP”) loans, grew $457 million, or 13 percent annualized, in the current quarter.
  • Core deposits increased $96.0 million, or 2 percent annualized, during the current quarter.
  • Non-interest bearing deposits increased $233 million, or 12 percent annualized, during the current quarter.
  • Net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.34 percent compared to 3.23 percent in the prior quarter. The core net interest margin for the current quarter was 3.29 percent, an increase of 13 basis points from 3.16 percent in the prior quarter.
  • The loan yield for the current quarter of 4.67 percent, increased 15 basis points, compared to 4.52 percent in the prior quarter.
  • Net interest income, on a tax-equivalent basis, was $211 million in the current quarter which increased $12.0 million, or 6 percent, over the prior quarter net interest income of $199 million.
  • Non-performing assets as a percentage of subsidiary assets was 0.13 percent in the current quarter compared to 0.16 percent in the prior quarter.
  • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 150 consecutive quarterly dividends and has increased the dividend 49 times.

Year-to-date 2022 Highlights:

  • Net income of $224 million for the first nine months of 2022 decreased $10.5 million, or 5 percent, compared to the prior year first nine months net income. The current year included a decrease of $38.3 million in PPP related income, a $33.8 million decrease in gain on the sale of residential loans, and an increase of $18.7 million in provision for credit loss expense.
  • The loan portfolio, excluding the PPP loans, organically grew $1.578 billion, or 16 percent annualized, in the first nine months of 2022.
  • Core deposits increased $564 million, or 4 percent annualized, during the first nine months of 2022.
  • Non-interest bearing deposits increased $515 million, or 9 percent annualized, during the first nine months of 2022.
  • Net interest income, on a tax-equivalent basis, was $600 million in the first nine months of 2022 which increased $111 million, or 23 percent, over the first nine months of 2021 net interest income of $489 million.
  • Dividends declared in the first nine months of 2022 were $0.99 per share, an increase of $0.04 per share, or 4 percent, over the prior year first nine months dividends of $0.95.

Financial Summary

 At or for the Three Months ended At or for the Nine Months ended
(Dollars in thousands, except per share and market data)Sep 30,
2022		 Jun 30,
2022		 Mar 31,
2022		 Sep 30,
2021		 Sep 30,
2022		 Sep 30,
2021
Operating results           
Net income$79,338  76,392  67,795  75,619  223,525  234,048 
Basic earnings per share$0.72  0.69  0.61  0.79  2.02  2.45 
Diluted earnings per share$0.72  0.69  0.61  0.79  2.02  2.45 
Dividends declared per share$0.33  0.33  0.33  0.32  0.99  0.95 
Market value per share           
Closing$49.13  47.42  50.28  55.35  49.13  55.35 
High$56.10  51.40  60.69  56.84  60.69  67.35 
Low$46.08  44.43  49.61  48.62  44.43  44.55 
Selected ratios and other data           
Number of common stock shares outstanding 110,766,954  110,766,287  110,763,316  95,512,659  110,766,954  95,512,659 
Average outstanding shares - basic 110,766,502  110,765,379  110,724,655  95,510,772  110,752,231  95,494,211 
Average outstanding shares - diluted 110,833,594  110,794,982  110,800,001  95,586,202  110,811,267  95,573,519 
Return on average assets (annualized) 1.18% 1.16% 1.06% 1.43% 1.13% 1.57%
Return on average equity (annualized) 10.94% 10.55% 8.97% 12.49% 10.14% 13.27%
Efficiency ratio 52.76% 55.74% 57.11% 50.17% 55.14% 48.94%
Dividend payout 45.83% 47.83% 54.10% 40.51% 49.01% 38.78%
Loan to deposit ratio 67.98% 66.26% 63.52% 65.06% 67.98% 65.06%
Number of full time equivalent employees 3,396  3,439  3,439  2,978  3,396  2,978 
Number of locations 222  224  223  194  222  194 
Number of ATMs 272  274  273  250  272  250 


KALISPELL, Mont., Oct. 20, 2022 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $79.3 million for the current quarter, an increase of $3.7 million, or 5 percent, from the $75.6 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.72 per share, a decrease of 9 percent from the prior year third quarter diluted earnings per share of $0.79. The $3.7 million increase in third quarter earnings over the prior year third quarter was driven primarily by the acquisition of Altabancorp and its Altabank subsidiary (“Alta”) and organic loan growth which more than offset the $10.1 million decrease in gain on the sale of residential loans, a $12.7 million decrease in the PPP related income and an increase of $7.6 million of provision for credit loss. “We are very pleased to see another quarter of high quality growth in deposits and loans. Our margin continues to increase, reflecting higher interest rates, and credit quality remains pristine,” said Randy Chesler, President and Chief Executive Officer. “We are well prepared for an economic downturn and remain very confident in the resiliency of the markets we serve and the quality of our loan portfolio.”

Net income for the nine months ended September 30, 2022 was $224 million, a decrease of $10.5 million, or 5 percent, from the $234 million net income for the first nine months of the prior year. Diluted earnings per share for the first nine months of 2022 was $2.02 per share, a decrease of 18 percent from the prior year first nine months earnings per share of $2.45. The $10.5 million decrease in net income over the prior year first nine months was driven primarily by a $38.3 million decrease in the PPP related income, a $33.8 million decrease in gain on the sale of residential loans, an increase of $18.7 million of provision for credit loss, and a $7.5 million increase in acquisition-related expenses which more than offset the net income increases from organic growth and the acquisition of Alta on October 1, 2021.

Asset Summary

         $ Change from
(Dollars in thousands)Sep 30,
2022		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021
Cash and cash equivalents$425,212  415,406  437,686  348,888  9,806  (12,474) 76,324 
Debt securities, available-for-sale 5,755,076  6,209,199  9,170,849  7,390,580  (454,123) (3,415,773) (1,635,504)
Debt securities, held-to-maturity 3,756,634  3,788,486  1,199,164  1,128,299  (31,852) 2,557,470  2,628,335 
Total debt securities 9,511,710  9,997,685  10,370,013  8,518,879  (485,975) (858,303) 992,831 
Loans receivable             
Residential real estate 1,368,368  1,261,119  1,051,883  781,538  107,249  316,485  586,830 
Commercial real estate 9,582,989  9,310,070  8,630,831  6,912,569  272,919  952,158  2,670,420 
Other commercial 2,729,717  2,685,392  2,664,190  2,598,616  44,325  65,527  131,101 
Home equity 793,556  773,582  736,288  660,920  19,974  57,268  132,636 
Other consumer 376,603  369,592  348,839  340,248  7,011  27,764  36,355 
Loans receivable 14,851,233  14,399,755  13,432,031  11,293,891  451,478  1,419,202  3,557,342 
Allowance for credit losses (178,191) (172,963) (172,665) (153,609) (5,228) (5,526) (24,582)
Loans receivable, net 14,673,042  14,226,792  13,259,366  11,140,282  446,250  1,413,676  3,532,760 
Other assets 2,122,990  2,050,122  1,873,580  1,305,970  72,868  249,410  817,020 
Total assets$26,732,954  26,690,005  25,940,645  21,314,019  42,949  792,309  5,418,935 


Total debt securities of $9.512 billion at September 30, 2022 decreased $486 million, or 5 percent, during the current quarter and increased $993 million, or 12 percent, from the prior year third quarter. Debt securities represented 36 percent of total assets at September 30, 2022 compared to 40 percent at December 31, 2021 and 40 percent of total assets at September 30, 2021.

Excluding the PPP loans, during the current quarter the loan portfolio increased $457 million, or 13 percent annualized, with the largest dollar increase in commercial real estate which increased $273 million, or 12 percent annualized. Excluding the PPP loans and loans from the acquisition of Alta, the loan portfolio increased $2.026 billion, or 19 percent, from the prior year third quarter with the largest dollar increase in commercial real estate loans which increased $1.267 billion, or 18 percent.

As of September 30, 2022, the Company had $10.1 million of PPP loans remaining. In the current quarter, the Company recognized $222 thousand of interest income (including deferred fees and costs) from the PPP loans. Net deferred fees remaining on the balance of the PPP loans at September 30, 2022 was $181 thousand.

Credit Quality Summary

 At or for the Nine Months ended At or for the Six Months ended At or for the Year ended At or for the Nine Months ended
(Dollars in thousands)Sep 30,
2022		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021
Allowance for credit losses       
Balance at beginning of period$172,665  172,665  158,243  158,243 
Acquisitions —  —  371  — 
Provision for credit losses 11,373  2,991  16,380  (2,921)
Charge-offs (10,905) (7,040) (11,594) (8,566)
Recoveries 5,058  4,347  9,265  6,853 
Balance at end of period$178,191  172,963  172,665  153,609 
Provision for credit losses       
Loan portfolio$11,373  2,991  16,380  (2,921)
Unfunded loan commitments 2,466  2,507  6,696  (1,959)
Total provision for credit losses$13,839  5,498  23,076  (4,880)
Other real estate owned$—  —  —  88 
Other foreclosed assets 42  379  18  18 
Accruing loans 90 days or more past due 2,524  5,064  17,141  5,172 
Non-accrual loans 32,493  38,523  50,532  45,901 
  Total non-performing assets$35,059  43,966  67,691  51,179 
Non-performing assets as a percentage of subsidiary assets 0.13% 0.16% 0.26% 0.24%
Allowance for credit losses as a percentage of non-performing loans 508% 393% 255% 301%
Allowance for credit losses as a percentage of total loans 1.20% 1.20% 1.29% 1.36%
Net charge-offs as a percentage of total loans 0.04% 0.02% 0.02% 0.02%
Accruing loans 30-89 days past due$10,922  16,588  50,566  26,002 
Accruing troubled debt restructurings$37,608  33,859  34,591  36,666 
Non-accrual troubled debt restructurings$2,355  2,427  2,627  2,820 
U.S. government guarantees included in non-performing assets$4,930  5,888  4,028  4,116 


Non-performing assets of $35.1 million at September 30, 2022 decreased $8.9 million, or 20 percent, over the prior quarter and decreased $16.1 million, or 31 percent, over prior year third quarter. Non-performing assets as a percentage of subsidiary assets at September 30, 2022 was 0.13 percent compared to 0.16 percent in the prior quarter and 0.24 percent in the prior year third quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $10.9 million at September 30, 2022 decreased $5.7 million from the prior quarter and decreased $15.1 million from the prior year third quarter. Early stage delinquencies as a percentage of loans at September 30, 2022 was 7 basis points, which compared to 12 basis points in the prior quarter and 23 basis points from prior year third quarter.

The current quarter credit loss expense of $8.3 million included $8.4 million of credit loss expense from loans and $41 thousand of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at September 30, 2022 was 1.20 percent which was the same compared to the prior quarter and a 16 basis points decrease from the prior year third quarter.

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

(Dollars in thousands)Provision for Credit Losses Loans Net Charge-Offs
(Recoveries)		 ACL
as a Percent
of Loans		 Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans		 Non-Performing
Assets to
Total Subsidiary
Assets
Third quarter 2022$8,382  $3,154  1.20% 0.07% 0.13%
Second quarter 2022 (1,353)  1,843  1.20% 0.12% 0.16%
First quarter 2022 4,344   850  1.28% 0.12% 0.24%
Fourth quarter 2021 19,301   616  1.29% 0.38% 0.26%
Third quarter 2021 2,313   152  1.36% 0.23% 0.24%
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%


Net charge-offs for the current quarter of $3.2 million compared to $1.8 million for the prior quarter and $152 thousand from the same quarter last year. Net charge-offs of $3.2 million included $2.2 million in deposit overdraft net charge-offs and $962 thousand of loan net charge-offs. The current quarter provision for credit loss expense for loans was $8.4 million which was an increase of $9.7 million from the prior quarter which was driven by the organic loan growth and current quarter charged-off loans. Current quarter provision for credit loss expense for loans increased $6.1 million from the prior year third quarter provision for credit loss expense of $2.3 million. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

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

Liability Summary

         $ Change from
(Dollars in thousands)Sep 30,
2022		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021
Deposits             
Non-interest bearing deposits$8,294,363 8,061,304 7,779,288 6,632,402 233,059  515,075  1,661,961 
NOW and DDA accounts 5,462,707 5,432,333 5,301,832 4,299,244 30,374  160,875  1,163,463 
Savings accounts 3,305,333 3,296,561 3,180,046 2,502,268 8,772  125,287  803,065 
Money market deposit accounts 3,905,676 4,021,102 4,014,128 3,123,425 (115,426) (108,452) 782,251 
Certificate accounts 907,560 968,382 1,036,077 919,852 (60,822) (128,517) (12,292)
Core deposits, total 21,875,639 21,779,682 21,311,371 17,477,191 95,957  564,268  4,398,448 
Wholesale deposits 4,003 4,001 25,878 26,123 2  (21,875) (22,120)
Deposits, total 21,879,642 21,783,683 21,337,249 17,503,314 95,959  542,393  4,376,328 
Repurchase agreements 887,483 968,197 1,020,794 1,040,939 (80,714) (133,311) (153,456)
Federal Home Loan Bank advances 705,000 580,000 — — 125,000  705,000  705,000 
Other borrowed funds 77,671 66,200 44,094 33,671 11,471  33,577  44,000 
Subordinated debentures 132,742 132,701 132,620 132,580 41  122  162 
Other liabilities 278,059 262,985 228,266 215,899 15,074  49,793  62,160 
Total liabilities$23,960,597 23,793,766 22,763,023 18,926,403 166,831  1,197,574  5,034,194 


Core deposits of $21.876 billion increased $96.0 million, or 2 percent annualized, during the current quarter and non-interest bearing deposits increased $233 million, or 12 percent annualized, during the current quarter. Excluding the Alta acquisition, core deposits increased $1.125 billion, or 6 percent, from the prior year third quarter. Non-interest bearing deposits were 38 percent of total core deposits at September 30, 2022 compared to 37 percent at December 31, 2021 and 38 percent at September 30, 2021.

Federal Home Loan Bank (“FHLB”) advances increased $125 million during the current quarter and $705 million during the first nine months of 2022 to support liquidity needs driven by the increase in the loan portfolio.

Stockholders’ Equity Summary

         $ Change from
(Dollars in thousands, except per share data)Sep 30,
2022		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021
Common equity$3,267,505  3,223,451  3,150,263  2,309,957  44,054  117,242  957,548 
Accumulated other comprehensive (loss) income (495,148) (327,212) 27,359  77,659  (167,936) (522,507) (572,807)
Total stockholders’ equity 2,772,357  2,896,239  3,177,622  2,387,616  (123,882) (405,265) 384,741 
Goodwill and core deposit intangible, net (1,029,658) (1,032,323) (1,037,652) (562,058) 2,665  7,994  (467,600)
Tangible stockholders’ equity$1,742,699  1,863,916  2,139,970  1,825,558  (121,217) (397,271) (82,859)


Stockholders’ equity to total assets 10.37% 10.85% 12.25% 11.20%      
Tangible stockholders’ equity to total tangible assets 6.78% 7.26% 8.59% 8.80%      
Book value per common share$25.03  26.15  28.71  25.00  (1.12) (3.68) 0.03 
Tangible book value per common share$15.73  16.83  19.33  19.11  (1.10) (3.60) (3.38)


Tangible stockholders’ equity of $1.743 billion at September 30, 2022 decreased $121.2 million, or 7 percent, from the prior quarter which was primarily driven by the increase in the unrealized loss on the available-for-sale (“AFS”) debt securities during the current quarter which was due to a continued increase in interest rates. Tangible stockholders’ equity at September 30, 2022 decreased $82.9 million, or 5 percent, from the prior year third quarter which was due to a significant increase in the unrealized loss on the AFS debt securities and increases in goodwill and core deposit intangibles from the Alta acquisition which was partially offset by the $840 million of Company common stock issued for the acquisition of Alta. Tangible book value per common share of $15.73 at the current quarter end decreased $1.10 per share, or 7 percent, from the prior quarter and decreased $3.38 per share, or 18 percent, from the prior year third quarter primarily as a result of the increase in the unrealized loss on AFS debt securities.

Cash Dividends
On September 28, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable October 20, 2022 to shareholders of record on October 11, 2022. The dividend was the Company’s 150th 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 September 30, 2022 
Compared to June 30, 2022, March 31, 2022 and September 30, 2021

Income Summary

 Three Months ended $ Change from
(Dollars in thousands)Sep 30,
2022		 Jun 30,
2022		 Mar 31,
2022		 Sep 30,
2021		 Jun 30,
2022		 Mar 31,
2022		 Sep 30,
2021
Net interest income             
Interest income$214,402  199,637  190,516  166,741  14,765  23,886  47,661 
Interest expense 9,075  6,199  4,961  4,128  2,876  4,114  4,947 
Total net interest income 205,327  193,438  185,555  162,613  11,889  19,772  42,714 
Non-interest income             
Service charges and other fees 18,970  17,309  17,111  15,154  1,661  1,859  3,816 
Miscellaneous loan fees and charges 4,040  3,850  3,555  2,592  190  485  1,448 
Gain on sale of loans 3,846  4,996  9,015  13,902  (1,150) (5,169) (10,056)
(Loss) Gain on sale of investments (85) (260) 446  (168) 175  (531) 83 
Other income 3,635  2,385  3,436  3,335  1,250  199  300 
Total non-interest income 30,406  28,280  33,563  34,815  2,126  (3,157) (4,409)
Total income 235,733  221,718  219,118  197,428  14,015  16,615  38,305 
Net interest margin (tax-equivalent) 3.34% 3.23% 3.20% 3.39%      


Net Interest Income
The current quarter net interest income of $205 million increased $11.9 million, or 6 percent, compared to the prior quarter and increased $42.7 million, or 26 percent, from the prior year third quarter. The current quarter interest income of $214 million increased $14.8 million, or 7 percent, over the prior quarter and was driven primarily by the increase in the loan portfolio and an increase in loan portfolio yields. The current quarter interest income increased $47.7 million over the prior year third quarter primarily due to $30.9 million of interest income from Altabank division and organic loan growth, which more than offset the $12.7 million decrease in interest income from the PPP loans. The current quarter net interest income, on a tax equivalent basis, was $211 million.

The current quarter interest expense of $9.1 million increased $2.9 million, or 46 percent, over the prior quarter and increased $4.9 million, or 120 percent, over the prior year third quarter primarily the result of an increase in borrowings to support the Company’s liquidity needs. Core deposit cost was 6 basis points in each of the current quarter, prior quarter and the prior year third quarter. The total cost of funding (including non-interest bearing deposits) was 15 basis points in the current quarter compared to 11 basis points in the prior quarter and 9 basis points in the prior year third quarter which was driven by the increased borrowings and borrowing rates.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.34 percent compared to 3.23 percent in the prior quarter and 3.39 percent in the prior year third quarter. The core net interest margin, excluding 4 basis points of discount accretion, 1 basis point from non-accrual interest and no impact from the PPP loans, was 3.29 percent compared to 3.16 in the prior quarter and 3.17 percent in the prior year third quarter. The core net interest margin increased 13 basis points in the current quarter as a result of increased core loan yields which more than offset the increase in borrowing yields. The core loan yield of 4.60 percent in the current quarter increased 19 basis points from the prior quarter core loan yield of 4.41 percent. “The increase in net interest margin – reported and core – reflects the success our Bank divisions have had in pricing loans as interest rates have increased,” said Ron Copher, Chief Financial Officer. “In addition, the Bank divisions have done well in growing low-cost core deposits, especially non-interest bearing deposits.”

Non-interest Income
Non-interest income for the current quarter totaled $30.4 million which was an increase of $2.1 million, or 8 percent, over the prior quarter. Non-interest income for the current quarter decreased $4.4 million, or 13 percent, over the same quarter last year with the decrease primarily driven by the decrease in gain on sale of residential loans. Gain on the sale of residential loans of $3.8 million for the current quarter decreased $1.2 million, or 23 percent, compared to the prior quarter and decreased $10.1 million, or 72 percent, from the prior year third quarter. The current quarter mortgage activity was lower than prior periods as a result of the continued reduction in residential purchase and refinance activity as mortgage rates continued to rise.

Non-interest Expense Summary

 Three Months ended   $ Change from
(Dollars in thousands)Sep 30,
2022		 Jun 30,
2022		 Mar 31,
2022		 Sep 30,
2021		 Jun 30,
2022		 Mar 31,
2022		 Sep 30,
2021
Compensation and employee benefits$80,612 79,803 79,074 66,364 809  1,538  14,248 
Occupancy and equipment 10,797 10,766 10,964 9,412 31  (167) 1,385 
Advertising and promotions 3,768 3,766 3,232 3,236 2  536  532 
Data processing 7,716 7,553 7,475 5,135 163  241  2,581 
Other real estate owned and foreclosed assets 66 6 — 142 60  66  (76)
Regulatory assessments and insurance 3,339 3,085 3,055 2,011 254  284  1,328 
Core deposit intangibles amortization 2,665 2,665 2,664 2,488 —  1  177 
Other expenses 21,097 21,877 23,844 15,320 (780) (2,747) 5,777 
Total non-interest expense$130,060 129,521 130,308 104,108 539  (248) 25,952 


Total non-interest expense of $130 million for the current quarter increased $539 thousand, or 42 basis points, over the prior quarter. Acquisition-related expenses was $892 thousand in the current quarter compared to $2.1 million in the prior quarter and $472 thousand in the prior year third quarter.

Total non-interest expense increased $26.0 million, or 25 percent, over the prior year third quarter which was primarily driven by the acquisition of Alta. Excluding $17.5 million of non-interest expense from the Altabank division and acquisition-related expenses, non-interest expense increased $8.1 million, or 8 percent, from the prior year third quarter. The increase includes $5.8 million from compensation and employee benefits driven by the increased number of employees and annual salary increases, and a $1.7 million increase in data processing expenses.

Federal and State Income Tax Expense
Tax expense during the third quarter of 2022 was $18.0 million, an increase of $656 thousand, or 4 percent, compared to the prior quarter and an increase of $1.0 million, or 6 percent, from the prior year third quarter. The effective tax rate in the current and prior quarter was 18.5 percent compared to 18.3 in the prior year third quarter.

Efficiency Ratio
The efficiency ratio was 52.76 percent in the current quarter compared to 55.74 percent in the prior quarter and 50.17 in the prior year third quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 52.39 percent in the current quarter compared to 54.84 percent in the prior quarter and 49.94 percent in the prior year third quarter. The increase in the efficiency ratio from the prior year third quarter was driven by the decrease in gain on the sale of residential loans.

Operating Results for Nine Months Ended September 30, 2022
Compared to September 30, 2021

Income Summary

 Nine Months ended  
(Dollars in thousands)Sep 30,
2022		 Sep 30,
2021		 $ Change % Change
Net interest income       
Interest income$604,555  $488,249  $116,306  24 %
Interest expense 20,235   13,355   6,880  52 %
Total net interest income 584,320   474,894   109,426  23 %
Non-interest income       
Service charges and other fees 53,390   41,741   11,649  28 %
Miscellaneous loan fees and charges 11,445   8,293   3,152  38 %
Gain on sale of loans 17,857   51,632   (33,775) (65)%
Gain on sale of investments 101   55   46  84 %
Other income 9,456   8,737   719  8 %
Total non-interest income 92,249   110,458   (18,209) (16)%
Total Income$676,569  $585,352  $91,217  16 %
Net interest margin (tax-equivalent) 3.26%  3.52%    


Net Interest Income
Net-interest income of $584 million for the first nine months of 2022 increased $109 million, or 23 percent, over the same period in 2021. Interest income of $605 million for the first nine months of the current year increased $116 million, or 24 percent, from the prior year and was primarily attributable to $89.9 million of interest income from Alta division and organic growth. Interest expense of $20.2 million for the first nine months of 2022 increased $6.9 million, or 52 percent over the prior year. The total funding cost (including non-interest bearing deposits) for the first nine months of 2022 was 12 basis points, which increased 2 basis points compared to 10 basis points in first nine months of 2021 driven by the increased borrowing rates.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first nine months of 2022 was 3.26 percent, a 26 basis points decrease from the net interest margin of 3.52 percent for the same period in the prior year. The core net interest margin, excluding 5 basis points of discount accretion, 1 basis point of non-accrual interest and 2 basis points increase from the PPP loans, was 3.18 which was a 17 basis point decrease from the core margin of 3.35 percent in the prior year.

Non-interest Income
Non-interest income of $92.2 million for the first nine months of 2022 decreased $18.2 million, or 16 percent, over the same period last year and was primarily attributable to the $33.8 million, or 65 percent, decrease in gain on sale of residential loans. Service charges and other fees of $53.4 million for the first nine months of 2022 increased $11.6 million, or 28 percent, from the prior year same period as a result of additional fees from increased customer accounts, transaction activity and the acquisition of Alta. Miscellaneous loan fees and charges increased $3.2 million, or 38 percent, primarily driven by increases in credit card interchange fees due to increased activity.

Non-interest Expense Summary

 Nine Months ended    
(Dollars in thousands)Sep 30,
2022		 Sep 30,
2021		 $ Change % Change
Compensation and employee benefits$239,489 $192,941 $46,548  24 %
Occupancy and equipment 32,527  28,135  4,392  16 %
Advertising and promotions 10,766  8,513  2,253  26 %
Data processing 22,744  16,002  6,742  42 %
Other real estate owned and foreclosed assets 72  202  (130) (64)%
Regulatory assessments and insurance 9,479  5,592  3,887  70 %
Core deposit intangibles amortization 7,994  7,464  530  7 %
Other expenses 66,818  41,926  24,892  59 %
Total non-interest expense$389,889 $300,775 $89,114  30 %


Total non-interest expense of $390 million for the first nine months of 2022 increased $89.1 million, or 30 percent, over the prior year same period. Excluding $59.1 million of non-interest expense from the Altabank division, $6.7 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $21.7 million, or 7 percent, from the prior year first nine months. Excluding the Alta division, compensation and employee benefits increased $18.6 million, or 10 percent, from prior year due to increased number of employees and salary increases. Other expenses for the first nine months of 2022 increased $24.9 million over prior year same period and was primarily driven by expenses related to the Alta division and a $7.5 million increase in acquisition related expenses. Acquisition-related expenses were $9.2 million in the current year compared to $1.7 million in the prior year same period.

Provision for Credit Losses

The provision for credit loss expense was $13.8 million for the first nine months of 2022, including provision for credit loss expense of $11.4 million on the loan portfolio and credit loss expense of $2.4 million on unfunded loan commitments. The provision for credit loss expense of $11.4 million on the loan portfolio in the current year increased $14.3 million over the provision for credit loss benefit of $2.9 million in the prior year which was primarily attributable to organic loan growth. Net charge-offs during the current year were $5.8 million compared to $1.7 million during the prior year.

Federal and State Income Tax Expense
Tax expense of $49.3 million in the first nine months of 2022 decreased $6.1 million, or 11 percent, over the prior year same period. The effective tax rate for 2022 was 18.1 percent compared to 19.1 percent in the prior year.

Efficiency Ratio
The efficiency ratio was 55.14 percent for the first nine months of 2022 compared to 48.94 percent for the same period last year. Excluding the impact from the PPP loans and acquisition related expenses, the efficiency ratio was 54.22 in 2022 compared to 51.84 in 2021 with the increase driven by the decrease in gain on the sale of residential loans and the increase in non-interest expense.

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

  • the risks associated with lending and potential adverse changes in the credit quality of loans in the Company’s portfolio;
  • changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, overall profitability, and stockholders’ equity;
  • legislative or regulatory changes, as well as increased banking and consumer protection regulation, that may adversely affect the Company’s business;
  • ability to complete pending or prospective future acquisitions;
  • costs or difficulties related to the completion and integration of acquisitions;
  • the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
  • reduced demand for banking products and services;
  • the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
  • competition among financial institutions in the Company's markets may increase significantly;
  • the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
  • the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
  • consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
  • dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
  • material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
  • natural disasters, including fires, floods, earthquakes, and other unexpected events;
  • the Company’s success in managing risks involved in the foregoing;
  • the effects from military action in Ukraine, including the broader impacts to financial markets and economic conditions; 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, October 21, 2022. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BI5d57c8bb72de4780ad1d8b419b9d998d. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/7o4jqa95. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.

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

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

(Dollars in thousands, except per share data)Sep 30,
2022		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021
Assets       
Cash on hand and in banks$260,456  293,541  198,087  250,579 
Interest bearing cash deposits 164,756  121,865  239,599  98,309 
Cash and cash equivalents 425,212  415,406  437,686  348,888 
Debt securities, available-for-sale 5,755,076  6,209,199  9,170,849  7,390,580 
Debt securities, held-to-maturity 3,756,634  3,788,486  1,199,164  1,128,299 
Total debt securities 9,511,710  9,997,685  10,370,013  8,518,879 
Loans held for sale, at fair value 21,720  33,837  60,797  94,138 
Loans receivable 14,851,233  14,399,755  13,432,031  11,293,891 
Allowance for credit losses (178,191) (172,963) (172,665) (153,609)
Loans receivable, net 14,673,042  14,226,792  13,259,366  11,140,282 
Premises and equipment, net 395,639  386,198  372,597  316,191 
Other real estate owned and foreclosed assets 42  379  18  106 
Accrued interest receivable 93,300  80,339  76,673  79,699 
Deferred tax asset 204,351  147,263  27,693  — 
Core deposit intangible, net 44,265  46,930  52,259  48,045 
Goodwill 985,393  985,393  985,393  514,013 
Non-marketable equity securities 38,215  33,215  10,020  10,021 
Bank-owned life insurance 168,187  168,231  167,671  123,729 
Other assets 171,878  168,337  120,459  120,028 
Total assets$26,732,954  26,690,005  25,940,645  21,314,019 
Liabilities       
Non-interest bearing deposits$8,294,363  8,061,304  7,779,288  6,632,402 
Interest bearing deposits 13,585,279  13,722,379  13,557,961  10,870,912 
Securities sold under agreements to repurchase 887,483  968,197  1,020,794  1,040,939 
FHLB advances 705,000  580,000  —  — 
Other borrowed funds 77,671  66,200  44,094  33,671 
Subordinated debentures 132,742  132,701  132,620  132,580 
Accrued interest payable 2,740  2,334  2,409  2,437 
Deferred tax liability —  —  —  1,815 
Other liabilities 275,319  260,651  225,857  211,647 
Total liabilities 23,960,597  23,793,766  22,763,023  18,926,403 
Commitments and Contingent Liabilities       
Stockholders’ Equity       
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding —  —  —  — 
Common stock, $0.01 par value per share, 234,000,000 and 117,187,500 shares authorized at September 30, 2022, and December 31, 2021, respectively 1,108  1,108  1,107  955 
Paid-in capital 2,342,452  2,341,097  2,338,814  1,497,939 
Retained earnings - substantially restricted 923,945  881,246  810,342  811,063 
Accumulated other comprehensive (loss) income (495,148) (327,212) 27,359  77,659 
Total stockholders’ equity 2,772,357  2,896,239  3,177,622  2,387,616 
Total liabilities and stockholders’ equity$26,732,954  26,690,005  25,940,645  21,314,019 


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

 Three Months ended Nine Months ended
(Dollars in thousands, except per share data)Sep 30,
2022		 Jun 30,
2022		 Mar 31,
2022		 Sep 30,
2021		 Sep 30,
2022		 Sep 30,
2021
Interest Income           
Debt securities$43,722  42,841  38,654 30,352  125,217 86,388 
Residential real estate loans 13,738  13,026  15,515 9,885  42,279 29,572 
Commercial loans 142,692  131,259  124,556 115,533  398,507 339,903 
Consumer and other loans 14,250  12,511  11,791 10,971  38,552 32,386 
Total interest income 214,402  199,637  190,516 166,741  604,555 488,249 
Interest Expense           
Deposits 3,279  3,141  3,464 2,609  9,884 8,427 
Securities sold under agreements to repurchase 675  367  393 496  1,435 1,836 
Federal Home Loan Bank advances 3,318  1,298  12 —  4,628 — 
Other borrowed funds 214  264  220 178  698 529 
Subordinated debentures 1,589  1,129  872 845  3,590 2,563 
Total interest expense 9,075  6,199  4,961 4,128  20,235 13,355 
Net Interest Income 205,327  193,438  185,555 162,613  584,320 474,894 
Provision for credit losses 8,341  (1,533) 7,031 725  13,839 (4,880)
Net interest income after provision for credit losses 196,986  194,971  178,524 161,888  570,481 479,774 
Non-Interest Income           
Service charges and other fees 18,970  17,309  17,111 15,154  53,390 41,741 
Miscellaneous loan fees and charges 4,040  3,850  3,555 2,592  11,445 8,293 
Gain on sale of loans 3,846  4,996  9,015 13,902  17,857 51,632 
(Loss) Gain on sale of debt securities (85) (260) 446 (168) 101 55 
Other income 3,635  2,385  3,436 3,335  9,456 8,737 
Total non-interest income 30,406  28,280  33,563 34,815  92,249 110,458 
Non-Interest Expense           
Compensation and employee benefits 80,612  79,803  79,074 66,364  239,489 192,941 
Occupancy and equipment 10,797  10,766  10,964 9,412  32,527 28,135 
Advertising and promotions 3,768  3,766  3,232 3,236  10,766 8,513 
Data processing 7,716  7,553  7,475 5,135  22,744 16,002 
Other real estate owned and foreclosed assets 66  6  — 142  72 202 
Regulatory assessments and insurance 3,339  3,085  3,055 2,011  9,479 5,592 
Core deposit intangibles amortization 2,665  2,665  2,664 2,488  7,994 7,464 
Other expenses 21,097  21,877  23,844 15,320  66,818 41,926 
Total non-interest expense 130,060  129,521  130,308 104,108  389,889 300,775 
Income Before Income Taxes 97,332  93,730  81,779 92,595  272,841 289,457 
Federal and state income tax expense 17,994  17,338  13,984 16,976  49,316 55,409 
Net Income$79,338  76,392  67,795 75,619  223,525 234,048 


Glacier Bancorp, Inc.
Average Balance Sheets

 Three Months ended
 September 30, 2022 June 30, 2022
(Dollars in thousands)Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate		 Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate
Assets           
Residential real estate loans$1,338,606  $13,738 4.11% $1,229,013  $13,026 4.24%
Commercial loans 1 12,146,551   144,357 4.72%  11,712,381   132,799 4.55%
Consumer and other loans 1,156,305   14,250 4.89%  1,107,396   12,511 4.53%
Total loans 2 14,641,462   172,345 4.67%  14,048,790   158,336 4.52%
Tax-exempt debt securities 3 2,000,404   18,484 3.70%  1,979,865   18,413 3.72%
Taxable debt securities 4 8,426,933   29,297 1.39%  8,685,641   28,473 1.31%
Total earning assets 25,068,799   220,126 3.48%  24,714,296   205,222 3.33%
Goodwill and intangibles 1,030,961       1,033,601     
Non-earning assets 604,754       619,671     
Total assets$26,704,514      $26,367,568     
Liabilities           
Non-interest bearing deposits$8,158,207  $— —% $7,991,993  $— —%
NOW and DDA accounts 5,473,458   794 0.06%  5,405,470   723 0.05%
Savings accounts 3,319,167   260 0.03%  3,261,798   244 0.03%
Money market deposit accounts 3,999,758   1,483 0.15%  3,999,582   1,369 0.14%
Certificate accounts 940,507   722 0.30%  982,397   797 0.33%
Total core deposits 21,891,097   3,259 0.06%  21,641,240   3,133 0.06%
Wholesale deposits 5 3,946   20 2.05%  3,877   8 0.71%
Repurchase agreements 917,104   675 0.29%  923,459   367 0.16%
FHLB advances 541,630   3,318 2.40%  476,978   1,298 1.08%
Subordinated debentures and other borrowed funds 202,383   1,803 3.54%  190,072   1,393 2.94%
Total funding liabilities 23,556,160   9,075 0.15%  23,235,626   6,199 0.11%
Other liabilities 261,735       235,814     
Total liabilities 23,817,895       23,471,440     
Stockholders’ Equity           
Common stock 1,108       1,108     
Paid-in capital 2,341,648       2,340,059     
Retained earnings 920,372       875,276     
Accumulated other comprehensive (loss) income (376,509)      (320,315)    
Total stockholders’ equity 2,886,619       2,896,128     
Total liabilities and stockholders’ equity$26,704,514      $26,367,568     
Net interest income (tax-equivalent)  $211,051     $199,023  
Net interest spread (tax-equivalent)    3.33%     3.22%
Net interest margin (tax-equivalent)    3.34%     3.23%

______________________________

1 Includes tax effect of $1.7 million and $1.5 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2022 and June 30, 2022, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.8 million and $3.8 million on tax-exempt debt securities income for the three months ended September 30, 2022 and June 30, 2022, respectively.
4 Includes tax effect of $225 thousand and $226 thousand on federal income tax credits for the three months ended September 30, 2022 and June 30, 2022, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

 Three Months ended
 September 30, 2022 September 30, 2021
(Dollars in thousands)Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate		 Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate
Assets           
Residential real estate loans$1,338,606  $13,738 4.11% $817,150 $9,885 4.84%
Commercial loans 1 12,146,551   144,357 4.72%  9,468,440  116,963 4.90%
Consumer and other loans 1,156,305   14,250 4.89%  974,582  10,971 4.47%
Total loans 2 14,641,462   172,345 4.67%  11,260,172  137,819 4.86%
Tax-exempt debt securities 3 2,000,404   18,484 3.70%  1,548,447  14,711 3.80%
Taxable debt securities 4 8,426,933   29,297 1.39%  6,767,418  18,896 1.12%
Total earning assets 25,068,799   220,126 3.48%  19,576,037  171,426 3.47%
Goodwill and intangibles 1,030,961       563,257    
Non-earning assets 604,754       803,226    
Total assets$26,704,514      $20,942,520    
Liabilities           
Non-interest bearing deposits$8,158,207  $— —% $6,505,530 $— —%
NOW and DDA accounts 5,473,458   794 0.06%  4,261,648  597 0.06%
Savings accounts 3,319,167   260 0.03%  2,440,332  146 0.02%
Money market deposit accounts 3,999,758   1,483 0.15%  3,041,634  814 0.11%
Certificate accounts 940,507   722 0.30%  928,165  1,036 0.44%
Total core deposits 21,891,097   3,259 0.06%  17,177,309  2,593 0.06%
Wholesale deposits 5 3,946   20 2.05%  26,117  16 0.24%
Repurchase agreements 917,104   675 0.29%  988,283  495 0.20%
FHLB advances 541,630   3,318 2.40%  —  — —%
Subordinated debentures and other borrowed funds 202,383   1,803 3.54%  166,151  1,024 2.44%
Total funding liabilities 23,556,160   9,075 0.15%  18,357,860  4,128 0.09%
Other liabilities 261,735       182,573    
Total liabilities 23,817,895       18,540,433    
Stockholders’ Equity           
Common stock 1,108       955    
Paid-in capital 2,341,648       1,497,107    
Retained earnings 920,372       805,253    
Accumulated other comprehensive (loss) income (376,509)      98,772    
Total stockholders’ equity 2,886,619       2,402,087    
Total liabilities and stockholders’ equity$26,704,514      $20,942,520    
Net interest income (tax-equivalent)  $211,051     $167,298  
Net interest spread (tax-equivalent)    3.33%     3.38%
Net interest margin (tax-equivalent)    3.34%     3.39%

______________________________

1 Includes tax effect of $1.7 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2022 and 2021, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.8 million and $3.0 million on tax-exempt debt securities income for the three months ended September 30, 2022 and 2021, respectively.
4 Includes tax effect of $225 thousand and $255 thousand on federal income tax credits for the three months ended September 30, 2022 and 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

 Nine Months ended
 September 30, 2022 September 30, 2021
(Dollars in thousands)Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate		 Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate
Assets           
Residential real estate loans$1,236,674  $42,279 4.56% $844,945 $29,572 4.67%
Commercial loans 1 11,728,932   403,075 4.59%  9,467,329  344,117 4.86%
Consumer and other loans 1,113,232   38,552 4.63%  963,002  32,386 4.50%
Total loans 2 14,078,838   483,906 4.60%  11,275,276  406,075 4.82%
Tax-exempt debt securities 3 1,902,147   52,561 3.68%  1,547,429  44,162 3.81%
Taxable debt securities 4 8,663,590   84,235 1.30%  5,771,573  51,998 1.20%
Total earning assets 24,644,575   620,702 3.37%  18,594,278  502,235 3.61%
Goodwill and intangibles 1,033,606       565,724    
Non-earning assets 659,727       816,982    
Total assets$26,337,908      $19,976,984    
Liabilities           
Non-interest bearing deposits$8,004,395  $— —% $6,069,326 $— —%
NOW and DDA accounts 5,387,013   2,362 0.06%  4,057,019  1,768 0.06%
Savings accounts 3,276,092   836 0.03%  2,277,335  425 0.02%
Money market deposit accounts 4,009,931   4,233 0.14%  2,895,362  2,540 0.12%
Certificate accounts 980,543   2,416 0.33%  951,655  3,640 0.51%
Total core deposits 21,657,974   9,847 0.06%  16,250,697  8,373 0.07%
Wholesale deposits 5 8,290   37 0.59%  32,787  55 0.22%
Repurchase agreements 936,840   1,435 0.20%  988,092  1,835 0.25%
FHLB advances 346,465   4,628 1.76%  —  — —%
Subordinated debentures and other borrowed funds 190,810   4,288 3.00%  165,996  3,092 2.49%
Total funding liabilities 23,140,379   20,235 0.12%  17,437,572  13,355 0.10%
Other liabilities 249,001       181,640    
Total liabilities 23,389,380       17,619,212    
Stockholders’ Equity           
Common stock 1,107       955    
Paid-in capital 2,340,208       1,496,051    
Retained earnings 881,208       757,666    
Accumulated other comprehensive income (273,995)      103,100    
Total stockholders’ equity 2,948,528       2,357,772    
Total liabilities and stockholders’ equity$26,337,908      $19,976,984    
Net interest income (tax-equivalent)  $600,467     $488,880  
Net interest spread (tax-equivalent)    3.25%     3.51%
Net interest margin (tax-equivalent)    3.26%     3.52%

______________________________

1 Includes tax effect of $4.6 million and $4.2 million on tax-exempt municipal loan and lease income for the nine months ended September 30, 2022 and 2021, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $10.9 million and $9.0 million on tax-exempt debt securities income for the nine months ended September 30, 2022 and 2021, respectively.
4 Includes tax effect of $676 thousand and $766 thousand on federal income tax credits for the nine months ended September 30, 2022 and 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification

 Loans Receivable, by Loan Type % Change from
(Dollars in thousands)Sep 30,
2022		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021
Custom and owner occupied construction$288,977  $282,916  $263,758  $170,489  2 % 10 % 69 %
Pre-sold and spec construction 291,146   269,568   257,568   188,668  8 % 13 % 54 %
Total residential construction 580,123   552,484   521,326   359,157  5 % 11 % 62 %
Land development 217,878   201,607   185,200   151,640  8 % 18 % 44 %
Consumer land or lots 204,241   197,394   173,305   143,977  3 % 18 % 42 %
Unimproved land 101,684   101,266   81,064   68,805  — % 25 % 48 %
Developed lots for operative builders 62,800   68,087   41,840   33,487  (8)% 50 % 88 %
Commercial lots 94,395   95,958   99,418   76,382  (2)% (5)% 24 %
Other construction 893,846   931,000   762,970   562,223  (4)% 17 % 59 %
Total land, lot, and other construction 1,574,844   1,595,312   1,343,797   1,036,514  (1)% 17 % 52 %
Owner occupied 2,811,614   2,747,152   2,645,841   2,069,551  2 % 6 % 36 %
Non-owner occupied 3,448,044   3,333,915   3,056,658   2,561,777  3 % 13 % 35 %
Total commercial real estate 6,259,658   6,081,067   5,702,499   4,631,328  3 % 10 % 35 %
Commercial and industrial 1,308,272   1,353,248   1,463,022   1,407,353  (3)% (11)% (7)%
Agriculture 770,282   758,394   751,185   748,548  2 % 3 % 3 %
1st lien 1,738,151   1,596,878   1,393,267   1,159,265  9 % 25 % 50 %
Junior lien 36,677   34,149   34,830   36,942  7 % 5 % (1)%
Total 1-4 family 1,774,828   1,631,027   1,428,097   1,196,207  9 % 24 % 48 %
Multifamily residential 574,366   562,480   545,001   373,022  2 % 5 % 54 %
Home equity lines of credit 841,143   820,721   761,990   709,828  2 % 10 % 18 %
Other consumer 219,036   213,943   207,513   198,763  2 % 6 % 10 %
Total consumer 1,060,179   1,034,664   969,503   908,591  2 % 9 % 17 %
States and political subdivisions 776,875   695,396   615,251   612,882  12 % 26 % 27 %
Other 193,526   169,520   153,147   114,427  14 % 26 % 69 %
Total loans receivable, including loans held for sale 14,872,953   14,433,592   13,492,828   11,388,029  3 % 10 % 31 %
Less loans held for sale 1 (21,720)  (33,837)  (60,797)  (94,138) (36)% (64)% (77)%
Total loans receivable$14,851,233  $14,399,755  $13,432,031  $11,293,891  3 % 11 % 31 %

______________________________

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

Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification

 

Non-performing Assets, by Loan Type		 Non-
Accrual
Loans		 Accruing
Loans 90
Days
or More Past
Due		 Other real estate owned and foreclosed assets
(Dollars in thousands)Sep 30,
2022		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021		 Sep 30,
2022		 Sep 30,
2022		 Sep 30,
2022
Custom and owner occupied construction$227 230 237 240 227 — —
Pre-sold and spec construction 1,016 389 — — 389 627 —
Total residential construction 1,243 619 237 240 616 627 —
Land development 149 197 250 31 149 — —
Consumer land or lots 285 157 309 186 152 133 —
Unimproved land 94 107 124 166 94 — —
Developed lots for operative builders 255 260 — — 255 — —
Other construction 12,884 12,884 12,884 276 12,884 — —
Total land, lot and other construction 13,667 13,605 13,567 659 13,534 133 —
Owner occupied 2,687 4,013 3,918 3,323 2,060 627 —
Non-owner occupied 820 1,491 6,063 2,089 820 — —
Total commercial real estate 3,507 5,504 9,981 5,412 2,880 627 —
Commercial and Industrial 3,453 5,741 3,066 5,621 2,988 441 24
Agriculture 4,102 9,169 29,151 32,712 4,102 — —
1st lien 2,149 2,196 2,870 3,178 2,032 117 —
Junior lien 139 200 136 166 139 — —
Total 1-4 family 2,288 2,396 3,006 3,344 2,171 117 —
Multifamily residential 4,635 4,765 6,548 — 4,635 — —
Home equity lines of credit 1,550 1,684 1,563 2,393 1,211 339 —
Other consumer 555 466 460 539 356 181 18
Total consumer 2,105 2,150 2,023 2,932 1,567 520 18
Other 59 17 112 259 — 59 —
Total$35,059 43,966 67,691 51,179 32,493 2,524 42


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

 Accruing 30-89 Days Delinquent Loans, by Loan Type % Change from
(Dollars in thousands)Sep 30,
2022		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021
Custom and owner occupied construction$427 $2,046 $1,243 $892 (79)% (66)% (52)%
Pre-sold and spec construction —  602  443  325 (100)% (100)% (100)%
Total residential construction 427  2,648  1,686  1,217 (84)% (75)% (65)%
Land development 596  365  —  276 63 % n/m 116 %
Consumer land or lots —  337  149  325 (100)% (100)% (100)%
Unimproved land 36  590  305  181 (94)% (88)% (80)%
Developed lots for operative builders 30  —  —  59 n/m n/m (49)%
Commercial lots 2,158  —  —  — n/m n/m n/m
Other construction —  —  30,788  12,884 n/m (100)% (100)%
Total land, lot and other construction 2,820  1,292  31,242  13,725 118 % (91)% (79)%
Owner occupied 527  1,560  1,739  1,933 (66)% (70)% (73)%
Non-owner occupied —  123  1,558  443 (100)% (100)% (100)%
Total commercial real estate 527  1,683  3,297  2,376 (69)% (84)% (78)%
Commercial and industrial 2,087  5,969  4,732  1,581 (65)% (56)% 32 %
Agriculture 641  851  459  1,032 (25)% 40 % (38)%
1st lien 761  329  2,197  350 131 % (65)% 117 %
Junior lien 72  105  87  167 (31)% (17)% (57)%
Total 1-4 family 833  434  2,284  517 92 % (64)% 61 %
Home equity lines of credit 1,004  1,071  1,994  3,023 (6)% (50)% (67)%
Other consumer 1,089  1,140  1,681  1,361 (4)% (35)% (20)%
Total consumer 2,093  2,211  3,675  4,384 (5)% (43)% (52)%
States and political subdivisions —  7  1,733  — (100)% (100)% n/m
Other 1,494  1,493  1,458  1,170 — % 2 % 28 %
Total$10,922 $16,588 $50,566 $26,002 (34)% (78)% (58)%

______________________________

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)Sep 30,
2022		 Jun 30,
2022		 Dec 31,
2021		 Sep 30,
2021		 Sep 30,
2022		 Sep 30,
2022
Custom and owner occupied construction$17  —  —  —  17 —
Pre-sold and spec construction (12) (8) (15) (12) — 12
Total residential construction 5  (8) (15) (12) 17 12
Land development (24) (21) (233) (163) — 24
Consumer land or lots (46) (10) (165) (164) — 46
Unimproved land —  (1) (241) (241) — —
Total land, lot and other construction (70) (32) (639) (568) — 70
Owner occupied 229  229  (423) (410) 1,642 1,413
Non-owner occupied (4) (3) (357) (356) — 4
Total commercial real estate 225  226  (780) (766) 1,642 1,417
Commercial and industrial 395  (458) 41  (87) 1,161 766
Agriculture (5) (4) (20) —  — 5
1st lien (99) (56) (331) (250) — 99
Junior lien (303) (297) (650) (511) — 303
Total 1-4 family (402) (353) (981) (761) — 402
Multifamily residential —  —  (40) (40) — —
Home equity lines of credit (98) (51) (621) (601) 45 143
Other consumer 257  166  236  145  410 153
Total consumer 159  115  (385) (456) 455 296
Other 5,540  3,207  5,148  4,403  7,630 2,090
Total$5,847  2,693  2,329  1,713  10,905 5,058

Visit our website at www.glacierbancorp.com

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