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

2nd Quarter 2022 Highlights:

• Net income was $76.4 million for the current quarter, an increase of $8.6 million, or 13 percent, from the prior quarter net income of $67.8 million.
• The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, grew $714 million, or 21 percent annualized, in the current quarter.
• Net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.23 percent compared to 3.20 percent in the prior quarter. The core net interest margin for the current quarter of 3.16 percent, increased 9 basis points from 3.07 percent in the prior quarter.
• Net interest income, on a tax-equivalent basis, was $199 million in the current quarter which increased $8.6 million, or 5 percent, over the prior quarter net interest income of $190 million.
• Core deposits increased $85.5 million, or 2 percent annualized, during the current quarter.
• Non-interest bearing deposits increased $71.3 million, or 4 percent, annualized during the current quarter.
• The Company declared a quarterly dividend of $0.33 per share. The Company has declared 149 consecutive quarterly dividends and has increased the dividend 49 times.
  

First Half 2022 Highlights:

• The loan portfolio, excluding the PPP loans, organically grew $1.121 billion, or 17 percent annualized, in the first half of 2022.
• Net interest income, on a tax-equivalent basis, was $389 million in the first half of 2022. Excluding the PPP loans, net interest income was $384 million which increased $86.8 million, or 29 percent, over the prior year first half net interest income of $298 million.
• Core deposits increased $468 million, or 4 percent annualized, during the first six months of 2022.
• Dividends declared in the first half of 2022 of $0.66 per share, an increase of $0.03 per share, or 5 percent, over the prior year dividends of $0.63.

Financial Summary  

		At or for the Three Months ended										At or for the Six Months ended
(Dollars in thousands, except per share and market data)		Jun 30, 2022				Mar 31, 2022			Jun 30, 2021			Jun 30, 2022			Jun 30, 2021
Operating results
Net income		$	76,392			67,795			77,627			144,187			158,429
Basic earnings per share		$	0.69			0.61			0.81			1.30			1.66
Diluted earnings per share		$	0.69			0.61			0.81			1.30			1.66
Dividends declared per share		$	0.33			0.33			0.32			0.66			0.63
Market value per share
Closing		$	47.42			50.28			55.08			47.42			55.08
High		$	51.40			60.69			63.05			60.69			67.35
Low		$	44.43			49.61			52.99			44.43			44.55
Selected ratios and other data
Number of common stock shares outstanding			110,766,287			110,763,316			95,507,234			110,766,287			95,507,234
Average outstanding shares - basic			110,765,379			110,724,655			95,505,877			110,745,017			95,485,839
Average outstanding shares - diluted			110,794,982			110,800,001			95,580,904			110,799,368			95,565,591
Return on average assets (annualized)			1.16	%		1.06	%		1.55	%		1.11	%		1.64	%
Return on average equity (annualized)			10.55	%		8.97	%		13.25	%		9.76	%		13.68	%
Efficiency ratio			55.74	%		57.11	%		49.92	%		56.42	%		48.31	%
Dividend payout			47.83	%		54.10	%		39.51	%		50.77	%		37.95	%
Loan to deposit ratio			66.26	%		63.52	%		67.64	%		66.26	%		67.64	%
Number of full time equivalent employees			3,439			3,439			2,987			3,439			2,987
Number of locations			224			223			194			224			194
Number of ATMs			274			273			250			274			250

KALISPELL, Mont., July 21, 2022 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $76.4 million for the current quarter, a decrease of $1.2 million, or 2 percent, from the $77.6 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.69 per share, a decrease of 15 percent from the prior year second quarter diluted earnings per share of $0.81. The $1.2 million decrease in second quarter earnings over the prior year second quarter was driven primarily by a $11.1 million decrease in gain on the sale of residential loans, a $10.3 million decrease in the PPP related income, an increase of $4.1 million of provision for credit loss, and a $976 thousand increase in acquisition-related expenses. For the quarter, the Company experienced a $38.0 million increase, or 24 percent, in net interest income and a $29.4 million increase, or 29 percent, in non-interest expense over the prior year second quarter which was driven by the acquisition of Altabancorp and its Altabank subsidiary (“Alta”). “We were very pleased to see the high quality loan and deposit growth we achieved this quarter,” said Randy Chesler, President and Chief Executive Officer. “We remain prepared to manage through economic headwinds if the economy experiences a recession and are confident in the long term resiliency of our markets and our core business.”

Net income for the six month ended June 30, 2022 was $144.2 million, a decrease of $14.2 million, or 9 percent, from the $158.4 million net income for the first six months in the prior year. Diluted earnings per share for the first half of 2022 was $1.30 per share, a decrease of 22 percent from the prior year first half earnings per share of $1.66. The $14.2 million decrease in net income over the prior year first half was driven primarily by a $25.7 million decrease in the PPP related income, a $23.7 million decrease in gain on the sale of residential loans, an increase of $11.1 million of provision for credit loss, and a $7.1 million increase in acquisition-related expenses.

Asset Summary

															$ Change from
(Dollars in thousands)		Jun 30, 2022				Mar 31, 2022			Dec 31, 2021			Jun 30, 2021			Mar 31, 2022			Dec 31, 2021			Jun 30, 2021
Cash and cash equivalents		$	415,406			436,805			437,686			921,207			(21,399	)		(22,280	)		(505,801	)
Debt securities, available-for-sale			6,209,199			6,535,763			9,170,849			6,147,143			(326,564	)		(2,961,650	)		62,056
Debt securities, held-to-maturity			3,788,486			3,576,941			1,199,164			1,024,730			211,545			2,589,322			2,763,756
Total debt securities			9,997,685			10,112,704			10,370,013			7,171,873			(115,019	)		(372,328	)		2,825,812
Loans receivable
Residential real estate			1,261,119			1,125,648			1,051,883			734,838			135,471			209,236			526,281
Commercial real estate			9,310,070			8,865,585			8,630,831			6,584,322			444,485			679,239			2,725,748
Other commercial			2,685,392			2,661,048			2,664,190			2,932,419			24,344			21,202			(247,027	)
Home equity			773,582			715,963			736,288			648,800			57,619			37,294			124,782
Other consumer			369,592			362,775			348,839			337,669			6,817			20,753			31,923
Loans receivable			14,399,755			13,731,019			13,432,031			11,238,048			668,736			967,724			3,161,707
Allowance for credit losses			(172,963	)		(176,159	)		(172,665	)		(151,448	)		3,196			(298	)		(21,515	)
Loans receivable, net			14,226,792			13,554,860			13,259,366			11,086,600			671,932			967,426			3,140,192
Other assets			2,050,122			1,995,955			1,873,580			1,308,353			54,167			176,542			741,769
Total assets		$	26,690,005			26,100,324			25,940,645			20,488,033			589,681			749,360			6,201,972

Total debt securities of $9.998 billion at June 30, 2022 decreased $115 million, or 1 percent, during the current quarter and increased $2.826 billion, or 39 percent, from the prior year second quarter. Debt securities represented 37 percent of total assets at June 30, 2022 compared to 40 percent at December 31, 2021 and 35 percent of total assets at June 30, 2021.

The loan portfolio of $14.400 billion at June 30, 2022 increased $669 million, or 5 percent, in the current quarter and increased $3.162 billion, or 28 percent, from the prior year second quarter. Excluding the PPP loans, the loan portfolio increased $714 million, or 21 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $444 million, or 20 percent annualized. Excluding the PPP loans and loans from the acquisition of Alta, the loan portfolio increased $1.950 billion, or 19 percent, from the prior year second quarter with the largest dollar increase in commercial real estate loans which increased $1.323 billion, or 20 percent.

The Company received $44.5 million in PPP loan forgiveness during the current quarter. As of June 30, 2022, the Company had $15.7 million of PPP loans remaining. In the current quarter, the Company recognized $1.6 million of interest income (including deferred fees and costs) from the PPP loans. The income recognized in the current quarter included $1.4 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of the PPP loans at June 30, 2022 was $416 thousand, 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.

Credit Quality Summary

		At or for the Six Months ended				At or for the Three Months ended			At or for the Year ended			At or for the Six Months ended
(Dollars in thousands)		Jun 30, 2022				Mar 31, 2022			Dec 31, 2021			Jun 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			2,991			4,344			16,380			(5,234	)
Charge-offs			(7,040	)		(2,695	)		(11,594	)		(5,946	)
Recoveries			4,347			1,845			9,265			4,385
Balance at end of period		$	172,963			176,159			172,665			151,448
Provision for credit losses
Loan portfolio		$	2,991			4,344			16,380			(5,234	)
Unfunded loan commitments			2,507			2,687			6,696			(371	)
Total provision for credit losses		$	5,498			7,031			23,076			(5,605	)
Other real estate owned		$	—			—			—			705
Other foreclosed assets			379			43			18			66
Accruing loans 90 days or more past due			5,064			4,510			17,141			4,220
Non-accrual loans			38,523			57,923			50,532			48,050
Total non-performing assets		$	43,966			62,476			67,691			53,041
Non-performing assets as a percentage of subsidiary assets			0.16	%		0.24	%		0.26	%		0.26	%
Allowance for credit losses as a percentage of non-performing loans			393	%		282	%		255	%		290	%
Allowance for credit losses as a percentage of total loans			1.20	%		1.28	%		1.29	%		1.35	%
Net charge-offs as a percentage of total loans			0.02	%		0.01	%		0.02	%		0.01	%
Accruing loans 30-89 days past due		$	16,588			16,080			50,566			12,076
Accruing troubled debt restructurings		$	33,859			33,702			34,591			37,667
Non-accrual troubled debt restructurings		$	2,427			2,501			2,627			3,179
U.S. government guarantees included in non-performing assets		$	5,888			5,068			4,028			4,186

Non-performing assets of $44.0 million at June 30, 2022 decreased $18.5 million, or 30 percent, over the prior quarter and decreased $9.1 million, or 17 percent, over prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2022 was 0.16 percent compared to 0.24 percent in the prior quarter and 0.26 percent in the prior year second quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $16.6 million at June 30, 2022 increased $508 thousand from the prior quarter and increased $4.5 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2022 was 12 basis points, which compared to 12 basis points in the prior quarter and 11 basis points from prior year second quarter.

The current quarter credit loss benefit of $1.5 million included $1.4 million of credit loss benefit from loans and $179 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 June 30, 2022 was 1.20 percent which was an 8 basis point decrease compared to the prior quarter and a 15 basis points decrease from the prior year second quarter.

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

(Dollars in thousands)		Provision for Credit Losses Loans				Net Charge-Offs (Recoveries)				ACL as a Percent of Loans			Accruing Loans 30-89 Days Past Due as a Percent of Loans			Non-Performing Assets to Total Subsidiary Assets
Second quarter 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	%
Third quarter 2020			2,869				826			1.42	%		0.15	%		0.25	%

The current quarter provision for credit loss benefit for loans was $1.4 million which was a decrease of $5.7 million from the prior quarter which was driven by the continued improvement in the credit quality and the Company’s increased comfort with the economic forecasts. Current quarter provision for credit loss benefit for loans decreased $4.3 million from the prior year second quarter provision for credit loss benefit of $5.7 million.

Net charge-offs for the current quarter were $1.8 million compared to $850 thousand for the prior quarter and recoveries of $725 thousand from the same quarter last year. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

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

Liability Summary

											$ Change from
(Dollars in thousands)		Jun 30, 2022			Mar 31, 2022		Dec 31, 2021		Jun 30, 2021		Mar 31, 2022			Dec 31, 2021			Jun 30, 2021
Deposits
Non-interest bearing deposits		$	8,061,304		7,990,003		7,779,288		6,307,794		71,301			282,016			1,753,510
NOW and DDA accounts			5,432,333		5,376,881		5,301,832		4,151,264		55,452			130,501			1,281,069
Savings accounts			3,296,561		3,287,521		3,180,046		2,346,129		9,040			116,515			950,432
Money market deposit accounts			4,021,102		4,044,655		4,014,128		2,990,021		(23,553	)		6,974			1,031,081
Certificate accounts			968,382		995,147		1,036,077		939,563		(26,765	)		(67,695	)		28,819
Core deposits, total			21,779,682		21,694,207		21,311,371		16,734,771		85,475			468,311			5,044,911
Wholesale deposits			4,001		3,688		25,878		26,121		313			(21,877	)		(22,120	)
Deposits, total			21,783,683		21,697,895		21,337,249		16,760,892		85,788			446,434			5,022,791
Repurchase agreements			968,197		958,479		1,020,794		995,201		9,718			(52,597	)		(27,004	)
Federal Home Loan Bank advances			580,000		80,000		—		—		500,000			580,000			580,000
Other borrowed funds			66,200		57,258		44,094		33,556		8,942			22,106			32,644
Subordinated debentures			132,701		132,661		132,620		132,540		40			81			161
Other liabilities			262,985		239,838		228,266		211,889		23,147			34,719			51,096
Total liabilities		$	23,793,766		23,166,131		22,763,023		18,134,078		627,635			1,030,743			5,659,688

Core deposits of $21.780 billion increased $85.5 million, or 2 percent annualized, during the current quarter and non-interest bearing deposits increased $71.3 million, or 4 percent annualized, during the current quarter. Excluding the Alta acquisition, core deposits increased $1.771 billion, or 11 percent, from the prior year second quarter. During 2020 and 2021, the Company experienced unprecedented increases in core deposits as a result of increased customer savings and federal stimulus. Non-interest bearing deposits were 37 percent of total core deposits at June 30, 2022 and December 31, 2021 compared to 38 percent at June 30, 2021.

Federal Home Loan Bank (“FHLB”) advances increased $500 million during the current quarter to support the liquidity needs driven by the increase in the loan portfolio. The FHLB advances will continue to fluctuate to supplement the liquidity needs during the year.

Stockholders’ Equity Summary

															$ Change from
(Dollars in thousands, except per share data)		Jun 30, 2022				Mar 31, 2022			Dec 31, 2021			Jun 30, 2021			Mar 31, 2022			Dec 31, 2021			Jun 30, 2021
Common equity		$	3,223,451			3,182,002			3,150,263			2,263,513			41,449			73,188			959,938
Accumulated other comprehensive (loss) income			(327,212	)		(247,809	)		27,359			90,442			(79,403	)		(354,571	)		(417,654	)
Total stockholders’ equity			2,896,239			2,934,193			3,177,622			2,353,955			(37,954	)		(281,383	)		542,284
Goodwill and core deposit intangible, net			(1,032,323	)		(1,034,987	)		(1,037,652	)		(564,546	)		2,664			5,329			(467,777	)
Tangible stockholders’ equity		$	1,863,916			1,899,206			2,139,970			1,789,409			(35,290	)		(276,054	)		74,507

Stockholders’ equity to total assets			10.85	%		11.24	%		12.25	%		11.49	%
Tangible stockholders’ equity to total tangible assets			7.26	%		7.58	%		8.59	%		8.98	%
Book value per common share		$	26.15			26.49			28.71			24.65			(0.34	)		(2.56	)		1.50
Tangible book value per common share		$	16.83			17.15			19.33			18.74			(0.32	)		(2.50	)		(1.91	)

Tangible stockholders’ equity of $1.864 billion at June 30, 2022 decreased $35.3 million, or 2 percent, from the prior quarter which was primarily driven by an increase in the unrealized loss on the available-for-sale (“AFS”) debt securities during the current quarter which was driven by an increase in interest rates. Tangible stockholders’ equity at June 30, 2022 increased $74.5 million, or 4 percent, from the prior year second quarter which largely was the result of $840 million of Company common stock issued for the acquisition of Alta, despite the increase in goodwill and core deposit intangibles associated with the Alta acquisition and an increase in the unrealized loss on the AFS debt securities. Tangible book value per common share of $16.83 at the current quarter end decreased $0.32 per share, or 2 percent, from the prior quarter and decreased $1.91 per share, or 10 percent, from the prior year second quarter primarily as a result of the increase in the unrealized loss on AFS debt securities.

Cash Dividends
On June 29, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable July 21, 2022 to shareholders of record on July 12, 2022. The dividend was the Company’s 149th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended June 30, 2022 
Compared to March 31, 2022, and June 30, 2021

Income Summary

		Three Months ended										$ Change from
(Dollars in thousands)		Jun 30, 2022				Mar 31, 2022			Jun 30, 2021			Mar 31, 2022			Jun 30, 2021
Net interest income
Interest income		$	199,637			190,516			159,956			9,121			39,681
Interest expense			6,199			4,961			4,487			1,238			1,712
Total net interest income			193,438			185,555			155,469			7,883			37,969
Non-interest income
Service charges and other fees			17,309			17,111			13,795			198			3,514
Miscellaneous loan fees and charges			3,850			3,555			2,923			295			927
Gain on sale of loans			4,996			9,015			16,106			(4,019	)		(11,110	)
(Loss) Gain on sale of investments			(260	)		446			(61	)		(706	)		(199	)
Other income			2,385			3,436			2,759			(1,051	)		(374	)
Total non-interest income			28,280			33,563			35,522			(5,283	)		(7,242	)
Total income			221,718			219,118			190,991			2,600			30,727
Net interest margin (tax-equivalent)			3.23	%		3.20	%		3.44	%

Net Interest Income
The current quarter net interest income of $193 million increased $7.9 million, or 4 percent, compared to the prior quarter and increased $38.0 million, or 24 percent, from the prior year second quarter. The current quarter interest income of $200 million increased $9.1 million, or 5 percent, over the prior quarter and was driven by the increase in the loan portfolio and an increase in investment yields, both of which more than offset the decrease of $1.8 million in interest income from the PPP loans. The current quarter interest income increased $39.7 million over the prior year second quarter primarily due to $28.7 million of interest income from Altabank division and organic loan growth, which more than offset the $8.8 million decrease in interest income from the PPP loans.

The current quarter interest expense of $6.2 million increased $1.2 million, or 25 percent, over the prior quarter and increased $1.7 million, or 38 percent, over the prior year second quarter primarily the result of an increase in borrowings to support the Company’s liquidity needs. Core deposit cost was 6 basis points in the current quarter compared to 7 basis points in the prior quarter and the prior year second quarter. The total cost of funding (including non-interest bearing deposits) was 11 basis points in the current quarter compared to 9 basis points in the prior quarter and 10 basis points in the prior year second quarter which was driven by the increased borrowings.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.23 percent compared to 3.20 percent in the prior quarter and 3.44 percent in the prior year second quarter. The core net interest margin, excluding 4 basis points of discount accretion, 1 basis point from non-accrual interest and 2 basis points increase from the PPP loans, was 3.16 percent compared to 3.07 in the prior quarter and 3.33 percent in the prior year second quarter. The core net interest margin increased 9 basis points in the current quarter as a result of increased core loan yields and investment yields. The core loan yield of 4.41 percent in the current quarter increased 7 basis points from the prior quarter core loan yield of 4.34 percent. “We are pleased with the growth in our net interest income in the current quarter. The Bank divisions remain focused on growing a low-cost core deposit base, especially non-interest bearing deposits, in a rising rate environment,” said Ron Copher, Chief Financial Officer.

Non-interest Income
Non-interest income for the current quarter totaled $28.3 million which was a decrease of $5.3 million, or 16 percent, over the prior quarter and a decrease of $7.2 million, or 20 percent, over the same quarter last year with both decreases primarily driven by the decrease in gain on sale of residential loans. Gain on the sale of residential loans of $5.0 million for the current quarter decreased $4.0 million, or 45 percent, compared to the prior quarter and decreased $11.1 million, or 69 percent, from the prior year second 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)		Jun 30, 2022			Mar 31, 2022		Jun 30, 2021		Mar 31, 2022			Jun 30, 2021
Compensation and employee benefits		$	79,803		79,074		64,109		729			15,694
Occupancy and equipment			10,766		10,964		9,208		(198	)		1,558
Advertising and promotions			3,766		3,232		2,906		534			860
Data processing			7,553		7,475		5,661		78			1,892
Other real estate owned and foreclosed assets			6		—		48		6			(42	)
Regulatory assessments and insurance			3,085		3,055		1,702		30			1,383
Core deposit intangibles amortization			2,665		2,664		2,488		1			177
Other expenses			21,877		23,844		13,960		(1,967	)		7,917
Total non-interest expense		$	129,521		130,308		100,082		(787	)		29,439

Total non-interest expense of $130 million for the current quarter decreased $787 thousand, or 60 basis points, over the prior quarter which was driven by a decrease in acquisition-related expenses during the current quarter. Acquisition-related expenses was $2.1 million in the current quarter compared to $6.2 million in the prior quarter and $1.1 million in the prior year second quarter.

Total non-interest expense increased $29.4 million, or 29 percent, over the prior year second quarter which was primarily driven by the acquisition of Alta. Excluding $18.3 million of non-interest expense from the Altabank division, $1.5 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $8.7 million, or 9 percent, from the prior year second quarter. The increase includes $5.2 million from compensation and employee benefits driven by the increased number of employees, annual salary increases and a $2.1 million increase in outside service expenses associated with technology infrastructure improvements.

Federal and State Income Tax Expense
Tax expense during the second quarter of 2022 was $17.3 million, an increase of $3.4 million, or 24 percent, compared to the prior quarter and a decrease of $1.6 million, or 8 percent, from the prior year second quarter. The effective tax rate in the current quarter was 18.5 percent compared to 17.1 percent in the prior quarter with the increase driven by higher taxable income. The effective tax rate in the current quarter of 18.5 percent compared to 19.6 percent in the prior year second quarter with the decrease in the current quarter attributable to lower taxable income.

Efficiency Ratio
The efficiency ratio was 55.74 percent in the current quarter compared to 57.11 percent in the prior quarter and 49.92 in the prior year second quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 54.84 percent in the current quarter compared to 54.33 percent in the prior quarter and 49.37 percent in the prior year second quarter. The increase in the efficiency ratio from the prior year second quarter was driven by the decrease in gain on the sale of residential loans, the decrease in income from the PPP loans and the increase in non-interest expense.

Operating Results for Six Months Ended June 30, 2022
Compared to June 30, 2021

Income Summary

		Six Months ended
(Dollars in thousands)		Jun 30, 2022				Jun 30, 2021				$ Change				% Change
Net interest income
Interest income		$	390,153			$	321,508			$	68,645			21	%
Interest expense			11,160				9,227				1,933			21	%
Total net interest income			378,993				312,281				66,712			21	%
Non-interest income
Service charges and other fees			34,420				26,587				7,833			29	%
Miscellaneous loan fees and charges			7,405				5,701				1,704			30	%
Gain on sale of loans			14,011				37,730				(23,719	)		(63)	%
Gain on sale of investments			186				223				(37	)		(17)	%
Other income			5,821				5,402				419			8	%
Total non-interest income			61,843				75,643				(13,800	)		(18)	%
Total Income		$	440,836			$	387,924			$	52,912			14	%
Net interest margin (tax-equivalent)			3.21	%			3.58	%

Net Interest Income
Net-interest income of $379 million for the first half of 2022 increased $66.7 million, or 21 percent, over the same period in 2021. Interest income of $390 million for the first six months of the current year increased $68.6 million, or 21 percent, from the prior year and was primarily attributable to $58.9 million of interest income from Alta division and organic growth. Interest expense of $11.2 million for the first half of 2022 increased $1.9 million, or 21 percent over the prior year. The total funding cost (including non-interest bearing deposits) for the first six months of 2022 was 10 basis points, which decreased 1 basis point compared to 11 basis points in first six months of 2021.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2022 was 3.21 percent, a 37 basis points decrease from the net interest margin of 3.58 percent for the same period in the prior year. The core net interest margin, excluding 6 basis points of discount accretion, 1 basis point of non-accrual interest and 3 basis points increase from the PPP loans, was 3.11 which was a 32 basis point decrease from the core margin of 3.43 percent in the prior year.

Non-interest Income
Non-interest income of $61.8 million for the first half of 2022 decreased $13.8 million, or 18 percent, over the same period last year and was primarily attributable to the $23.7 million, or 63 percent, decrease in gain on sale of residential loans. Service charges and other fees of $34.4 million for the first six months of 2022 increased $7.8 million, or 29 percent, from prior year as a result of additional fees from increased customer accounts, transaction activity and the acquisition of Alta. Miscellaneous loan fees and charges increased $1.7 million, or 30 percent, primarily driven by increases in credit card interchange fees due to increased activity.

Non-interest Expense Summary

		Six Months ended
(Dollars in thousands)		Jun 30, 2022			Jun 30, 2021			$ Change				% Change
Compensation and employee benefits		$	158,877		$	126,577		$	32,300			26	%
Occupancy and equipment			21,730			18,723			3,007			16	%
Advertising and promotions			6,998			5,277			1,721			33	%
Data processing			15,028			10,867			4,161			38	%
Other real estate owned and foreclosed assets			6			60			(54	)		(90)	%
Regulatory assessments and insurance			6,140			3,581			2,559			71	%
Core deposit intangibles amortization			5,329			4,976			353			7	%
Other expenses			45,721			26,606			19,115			72	%
Total non-interest expense		$	259,829		$	196,667		$	63,162			32	%

Total non-interest expense of $260 million for the first half of 2022 increased $63.2 million, or 32 percent, over the prior year first half. Excluding $41.6 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 $14.8 million, or 8 percent, from the prior year first half. Excluding the Alta division, compensation and employee benefits increased $13.5 million, or 11 percent, from prior year due to increased number of employees and annual salary increases. Other expenses increased $19.1 million and was primarily driven by expenses related to the Alta division and a $7.1 million increase in acquisition related expenses. Acquisition-related expenses were $8.3 million in the current year compared to $1.2 million in the prior year.

Provision for Credit Losses 
The provision for credit loss expense was $5.5 million for the first six months of 2022, including provision for credit loss expense of $3.0 million on the loan portfolio and credit loss expense of $2.5 million on unfunded loan commitments. The provision for credit loss expense of $3.0 million on the loan portfolio in the current year increased $8.2 million over the provision for credit loss benefit of $5.2 million in the prior year which was primarily attributable to organic loan growth. Net charge-offs during the current year were $2.7 million compared to $1.6 million during the prior year.

Federal and State Income Tax Expense
Tax expense of $31.3 million in the first six months of 2022 decreased $7.1 million, or 19 percent, over the prior year same period. The effective tax rate for 2022 was 17.8 percent compared to 19.5 percent in the prior year.

Efficiency Ratio
The efficiency ratio was 56.42 percent for the first six months of 2022 compared to 48.31 percent for the same period last year. Excluding the impact from the PPP loans and acquisition related expenses, the efficiency ratio was 55.19 in 2022 compared to 52.89 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 and overall profitability;
• legislative or regulatory changes, such as the those signaled by the Biden Administration, as well as increased banking and consumer protection regulation, that 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; and
• the effects of any reputational damage to the Company resulting from any of the foregoing.
  

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

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, July 22, 2022. The conference call will be accessible by telephone and webcast. Investors who would like to call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BI5ae3db12b0eb47b58e17e4348de70584. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/8mhnune6. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.

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

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

(Dollars in thousands, except per share data)		Jun 30, 2022				Mar 31, 2022			Dec 31, 2021			Jun 30, 2021
Assets
Cash on hand and in banks		$	293,541			282,335			198,087			272,363
Interest bearing cash deposits			121,865			154,470			239,599			648,844
Cash and cash equivalents			415,406			436,805			437,686			921,207
Debt securities, available-for-sale			6,209,199			6,535,763			9,170,849			6,147,143
Debt securities, held-to-maturity			3,788,486			3,576,941			1,199,164			1,024,730
Total debt securities			9,997,685			10,112,704			10,370,013			7,171,873
Loans held for sale, at fair value			33,837			51,284			60,797			98,410
Loans receivable			14,399,755			13,731,019			13,432,031			11,238,048
Allowance for credit losses			(172,963	)		(176,159	)		(172,665	)		(151,448	)
Loans receivable, net			14,226,792			13,554,860			13,259,366			11,086,600
Premises and equipment, net			386,198			373,123			372,597			315,573
Other real estate owned and foreclosed assets			379			43			18			771
Accrued interest receivable			80,339			81,467			76,673			70,452
Deferred tax asset			147,263			120,025			27,693			—
Core deposit intangible, net			46,930			49,594			52,259			50,533
Goodwill			985,393			985,393			985,393			514,013
Non-marketable equity securities			33,215			13,217			10,020			10,019
Bank-owned life insurance			168,231			167,298			167,671			123,035
Other assets			168,337			154,511			120,459			125,547
Total assets		$	26,690,005			26,100,324			25,940,645			20,488,033
Liabilities
Non-interest bearing deposits		$	8,061,304			7,990,003			7,779,288			6,307,794
Interest bearing deposits			13,722,379			13,707,892			13,557,961			10,453,098
Securities sold under agreements to repurchase			968,197			958,479			1,020,794			995,201
FHLB advances			580,000			80,000			—			—
Other borrowed funds			66,200			57,258			44,094			33,556
Subordinated debentures			132,701			132,661			132,620			132,540
Accrued interest payable			2,334			2,284			2,409			2,433
Deferred tax liability			—			—			—			6,463
Other liabilities			260,651			237,554			225,857			202,993
Total liabilities			23,793,766			23,166,131			22,763,023			18,134,078
Commitments and Contingent Liabilities
Stockholders’ Equity
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding			—			—			—			—
Common stock, $0.01 par value per share, 234,000,000 shares authorized			1,108			1,108			1,107			955
Paid-in capital			2,341,097			2,339,405			2,338,814			1,496,488
Retained earnings - substantially restricted			881,246			841,489			810,342			766,070
Accumulated other comprehensive (loss) income			(327,212	)		(247,809	)		27,359			90,442
Total stockholders’ equity			2,896,239			2,934,193			3,177,622			2,353,955
Total liabilities and stockholders’ equity		$	26,690,005			26,100,324			25,940,645			20,488,033

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

		Three Months ended									Six Months ended
(Dollars in thousands, except per share data)		Jun 30, 2022				Mar 31, 2022		Jun 30, 2021			Jun 30, 2022		Jun 30, 2021
Interest Income
Debt securities		$	42,841			38,654		28,730			81,495		56,036
Residential real estate loans			13,026			15,515		9,541			28,541		19,687
Commercial loans			131,259			124,556		110,829			255,815		224,370
Consumer and other loans			12,511			11,791		10,856			24,302		21,415
Total interest income			199,637			190,516		159,956			390,153		321,508
Interest Expense
Deposits			3,141			3,464		2,804			6,605		5,818
Securities sold under agreements to repurchase			367			393		651			760		1,340
Federal Home Loan Bank advances			1,298			12		—			1,310		—
Other borrowed funds			264			220		177			484		351
Subordinated debentures			1,129			872		855			2,001		1,718
Total interest expense			6,199			4,961		4,487			11,160		9,227
Net Interest Income			193,438			185,555		155,469			378,993		312,281
Provision for credit losses			(1,533	)		7,031		(5,653	)		5,498		(5,605	)
Net interest income after provision for credit losses			194,971			178,524		161,122			373,495		317,886
Non-Interest Income
Service charges and other fees			17,309			17,111		13,795			34,420		26,587
Miscellaneous loan fees and charges			3,850			3,555		2,923			7,405		5,701
Gain on sale of loans			4,996			9,015		16,106			14,011		37,730
(Loss) Gain on sale of debt securities			(260	)		446		(61	)		186		223
Other income			2,385			3,436		2,759			5,821		5,402
Total non-interest income			28,280			33,563		35,522			61,843		75,643
Non-Interest Expense
Compensation and employee benefits			79,803			79,074		64,109			158,877		126,577
Occupancy and equipment			10,766			10,964		9,208			21,730		18,723
Advertising and promotions			3,766			3,232		2,906			6,998		5,277
Data processing			7,553			7,475		5,661			15,028		10,867
Other real estate owned and foreclosed assets			6			—		48			6		60
Regulatory assessments and insurance			3,085			3,055		1,702			6,140		3,581
Core deposit intangibles amortization			2,665			2,664		2,488			5,329		4,976
Other expenses			21,877			23,844		13,960			45,721		26,606
Total non-interest expense			129,521			130,308		100,082			259,829		196,667
Income Before Income Taxes			93,730			81,779		96,562			175,509		196,862
Federal and state income tax expense			17,338			13,984		18,935			31,322		38,433
Net Income		$	76,392			67,795		77,627			144,187		158,429

Glacier Bancorp, Inc.
Average Balance Sheets

		Three Months ended
		June 30, 2022										March 31, 2022
(Dollars in thousands)		Average Balance				Interest & Dividends			Average Yield/ Rate			Average Balance				Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans		$	1,229,013			$	13,026		4.24	%		$	1,140,224			$	15,515		5.44	%
Commercial loans 1			11,712,381				132,799		4.55	%			11,318,767				125,919		4.51	%
Consumer and other loans			1,107,396				12,511		4.53	%			1,075,102				11,791		4.45	%
Total loans 2			14,048,790				158,336		4.52	%			13,534,093				153,225		4.59	%
Tax-exempt debt securities 3			1,979,865				18,413		3.72	%			1,723,125				15,664		3.64	%
Taxable debt securities 4			8,685,641				28,473		1.31	%			8,883,211				26,465		1.19	%
Total earning assets			24,714,296				205,222		3.33	%			24,140,429				195,354		3.28	%
Goodwill and intangibles			1,033,601										1,036,315
Non-earning assets			619,671										756,422
Total assets		$	26,367,568									$	25,933,166
Liabilities
Non-interest bearing deposits		$	7,991,993			$	—		—	%		$	7,859,706			$	—		—	%
NOW and DDA accounts			5,405,470				723		0.05	%			5,279,984				845		0.06	%
Savings accounts			3,261,798				244		0.03	%			3,246,512				332		0.04	%
Money market deposit accounts			3,999,582				1,369		0.14	%			4,030,795				1,381		0.14	%
Certificate accounts			982,397				797		0.33	%			1,019,595				897		0.36	%
Total core deposits			21,641,240				3,133		0.06	%			21,436,592				3,455		0.07	%
Wholesale deposits 5			3,877				8		0.71	%			17,191				9		0.22	%
Repurchase agreements			923,459				367		0.16	%			970,544				393		0.16	%
FHLB advances			476,978				1,298		1.08	%			15,000				12		0.33	%
Subordinated debentures and other borrowed funds			190,072				1,393		2.94	%			179,725				1,092		2.46	%
Total funding liabilities			23,235,626				6,199		0.11	%			22,619,052				4,961		0.09	%
Other liabilities			235,814										249,316
Total liabilities			23,471,440										22,868,368
Stockholders’ Equity
Common stock			1,108										1,107
Paid-in capital			2,340,059										2,338,887
Retained earnings			875,276										847,172
Accumulated other comprehensive (loss) income			(320,315	)									(122,368	)
Total stockholders’ equity			2,896,128										3,064,798
Total liabilities and stockholders’ equity		$	26,367,568									$	25,933,166
Net interest income (tax-equivalent)						$	199,023									$	190,393
Net interest spread (tax-equivalent)									3.22	%									3.19	%
Net interest margin (tax-equivalent)									3.23	%									3.20	%

______________________________

¹ Includes tax effect of $1.5 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2022 and March 31, 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 $3.3 million on tax-exempt debt securities income for the three months ended June 30, 2022 and March 31, 2022, respectively.
⁴ Includes tax effect of $226 thousand and $225 thousand on federal income tax credits for the three months ended June 30, 2022 and March 31, 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
		June 30, 2022										June 30, 2021
(Dollars in thousands)		Average Balance				Interest & Dividends			Average Yield/ Rate			Average Balance			Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans		$	1,229,013			$	13,026		4.24	%		$	825,467		$	9,541		4.62	%
Commercial loans 1			11,712,381				132,799		4.55	%			9,520,603			112,226		4.73	%
Consumer and other loans			1,107,396				12,511		4.53	%			964,415			10,856		4.51	%
Total loans 2			14,048,790				158,336		4.52	%			11,310,485			132,623		4.70	%
Tax-exempt debt securities 3			1,979,865				18,413		3.72	%			1,548,323			14,740		3.81	%
Taxable debt securities 4			8,685,641				28,473		1.31	%			5,810,800			17,251		1.19	%
Total earning assets			24,714,296				205,222		3.33	%			18,669,608			164,614		3.54	%
Goodwill and intangibles			1,033,601										565,749
Non-earning assets			619,671										804,897
Total assets		$	26,367,568									$	20,040,254
Liabilities
Non-interest bearing deposits		$	7,991,993			$	—		—	%		$	6,100,872		$	—		—	%
NOW and DDA accounts			5,405,470				723		0.05	%			4,073,819			600		0.06	%
Savings accounts			3,261,798				244		0.03	%			2,295,334			141		0.02	%
Money market deposit accounts			3,999,582				1,369		0.14	%			2,921,642			861		0.12	%
Certificate accounts			982,397				797		0.33	%			955,694			1,181		0.50	%
Total core deposits			21,641,240				3,133		0.06	%			16,347,361			2,783		0.07	%
Wholesale deposits 5			3,877				8		0.71	%			34,301			21		0.24	%
Repurchase agreements			923,459				367		0.16	%			974,744			651		0.27	%
FHLB advances			476,978				1,298		1.08	%			—			—		—	%
Subordinated debentures and other borrowed funds			190,072				1,393		2.94	%			166,002			1,032		2.49	%
Total funding liabilities			23,235,626				6,199		0.11	%			17,522,408			4,487		0.10	%
Other liabilities			235,814										168,613
Total liabilities			23,471,440										17,691,021
Stockholders’ Equity
Common stock			1,108										955
Paid-in capital			2,340,059										1,495,886
Retained earnings			875,276										756,561
Accumulated other comprehensive (loss) income			(320,315	)									95,831
Total stockholders’ equity			2,896,128										2,349,233
Total liabilities and stockholders’ equity		$	26,367,568									$	20,040,254
Net interest income (tax-equivalent)						$	199,023								$	160,127
Net interest spread (tax-equivalent)									3.22	%								3.44	%
Net interest margin (tax-equivalent)									3.23	%								3.44	%

______________________________

¹ Includes tax effect of $1.5 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended June 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 June 30, 2022 and 2021, respectively.
⁴ Includes tax effect of $226 thousand and $255 thousand on federal income tax credits for the three months ended June 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)

		Six Months ended
		June 30, 2022										June 30, 2021
(Dollars in thousands)		Average Balance				Interest & Dividends			Average Yield/ Rate			Average Balance			Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans		$	1,184,864			$	28,541		4.82	%		$	859,073		$	19,687		4.58	%
Commercial loans 1			11,516,661				258,718		4.53	%			9,466,763			227,154		4.84	%
Consumer and other loans			1,091,338				24,302		4.49	%			957,116			21,415		4.51	%
Total loans 2			13,792,863				311,561		4.56	%			11,282,952			268,256		4.79	%
Tax-exempt debt securities 3			1,852,204				34,077		3.68	%			1,546,912			29,450		3.81	%
Taxable debt securities 4			8,783,881				54,938		1.25	%			5,265,398			33,102		1.26	%
Total earning assets			24,428,948				400,576		3.31	%			18,095,262			330,808		3.69	%
Goodwill and intangibles			1,034,951										566,979
Non-earning assets			687,668										823,973
Total assets		$	26,151,567									$	19,486,214
Liabilities
Non-interest bearing deposits		$	7,926,215			$	—		—	%		$	5,847,608		$	—		—	%
NOW and DDA accounts			5,343,074				1,568		0.06	%			3,953,009			1,170		0.06	%
Savings accounts			3,254,197				576		0.04	%			2,194,485			279		0.03	%
Money market deposit accounts			4,015,102				2,750		0.14	%			2,821,014			1,726		0.12	%
Certificate accounts			1,000,893				1,694		0.34	%			963,595			2,603		0.54	%
Total core deposits			21,539,481				6,588		0.06	%			15,779,711			5,778		0.07	%
Wholesale deposits 5			10,497				17		0.31	%			36,178			40		0.22	%
Repurchase agreements			946,872				760		0.16	%			987,995			1,340		0.27	%
FHLB advances			247,265				1,310		1.05	%			—			—		—	%
Subordinated debentures and other borrowed funds			184,927				2,485		2.71	%			165,917			2,069		2.51	%
Total funding liabilities			22,929,042				11,160		0.10	%			16,969,801			9,227		0.11	%
Other liabilities			242,528										181,166
Total liabilities			23,171,570										17,150,967
Stockholders’ Equity
Common stock			1,107										955
Paid-in capital			2,339,476										1,495,514
Retained earnings			861,302										733,478
Accumulated other comprehensive income			(221,888	)									105,300
Total stockholders’ equity			2,979,997										2,335,247
Total liabilities and stockholders’ equity		$	26,151,567									$	19,486,214
Net interest income (tax-equivalent)						$	389,416								$	321,581
Net interest spread (tax-equivalent)									3.21	%								3.58	%
Net interest margin (tax-equivalent)									3.21	%								3.58	%

______________________________

¹ Includes tax effect of $2.9 million and $2.8 million on tax-exempt municipal loan and lease income for the six months ended June 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 $7.1 million and $6.0 million on tax-exempt debt securities income for the six months ended June 30, 2022 and 2021, respectively.
⁴ Includes tax effect of $451 thousand and $510 thousand on federal income tax credits for the six months ended June 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)		Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Jun 30, 2021				Mar 31, 2022			Dec 31, 2021			Jun 30, 2021
Custom and owner occupied construction		$	282,916			$	265,579			$	263,758			$	158,405			7	%		7	%		79	%
Pre-sold and spec construction			269,568				258,429				257,568				163,740			4	%		5	%		65	%
Total residential construction			552,484				524,008				521,326				322,145			5	%		6	%		72	%
Land development			201,607				180,270				185,200				111,736			12	%		9	%		80	%
Consumer land or lots			197,394				184,217				173,305				138,292			7	%		14	%		43	%
Unimproved land			101,266				90,498				81,064				63,469			12	%		25	%		60	%
Developed lots for operative builders			68,087				61,276				41,840				27,143			11	%		63	%		151	%
Commercial lots			95,958				98,403				99,418				64,664			(2	)%		(3	)%		48	%
Other construction			931,000				833,218				762,970				554,548			12	%		22	%		68	%
Total land, lot, and other construction			1,595,312				1,447,882				1,343,797				959,852			10	%		19	%		66	%
Owner occupied			2,747,152				2,675,681				2,645,841				2,019,860			3	%		4	%		36	%
Non-owner occupied			3,333,915				3,190,519				3,056,658				2,436,672			4	%		9	%		37	%
Total commercial real estate			6,081,067				5,866,200				5,702,499				4,456,532			4	%		7	%		36	%
Commercial and industrial			1,353,248				1,378,500				1,463,022				1,654,237			(2	)%		(8	)%		(18	)%
Agriculture			758,394				731,248				751,185				746,678			4	%		1	%		2	%
1st lien			1,596,878				1,466,279				1,393,267				1,105,579			9	%		15	%		44	%
Junior lien			34,149				33,438				34,830				38,029			2	%		(2	)%		(10	)%
Total 1-4 family			1,631,027				1,499,717				1,428,097				1,143,608			9	%		14	%		43	%
Multifamily residential			562,480				545,483				545,001				398,499			3	%		3	%		41	%
Home equity lines of credit			820,721				753,362				761,990				693,135			9	%		8	%		18	%
Other consumer			213,943				207,827				207,513				201,336			3	%		3	%		6	%
Total consumer			1,034,664				961,189				969,503				894,471			8	%		7	%		16	%
States and political subdivisions			695,396				659,742				615,251				631,199			5	%		13	%		10	%
Other			169,520				168,334				153,147				129,237			1	%		11	%		31	%
Total loans receivable, including loans held for sale			14,433,592				13,782,303				13,492,828				11,336,458			5	%		7	%		27	%
Less loans held for sale 1			(33,837	)			(51,284	)			(60,797	)			(98,410	)		(34	)%		(44	)%		(66	)%
Total loans receivable		$	14,399,755			$	13,731,019			$	13,432,031			$	11,238,048			5	%		7	%		28	%

______________________________

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

Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification

		Non-performing Assets, by Loan Type									Non- Accrual Loans		Accruing Loans 90 Days or More Past Due		Other real estate owned and foreclosed assets
(Dollars in thousands)		Jun 30, 2022			Mar 31, 2022		Dec 31, 2021		Jun 30, 2021		Jun 30, 2022		Jun 30, 2022		Jun 30, 2022
Custom and owner occupied construction		$	230		233		237		243		230		—		—
Land development			197		240		250		279		197		—		—
Consumer land or lots			157		160		309		190		157		—		—
Unimproved land			107		128		124		178		107		—		—
Developed lots for operative builders			260		—		—		—		260		—		—
Commercial lots			—		—		—		368		—		—		—
Other construction			12,884		12,884		12,884		—		12,884		—		—
Total land, lot and other construction			13,605		13,412		13,567		1,015		13,605		—		—
Owner occupied			4,013		3,508		3,918		3,747		3,809		204		—
Non-owner occupied			1,491		1,526		6,063		1,892		1,491		—		—
Total commercial real estate			5,504		5,034		9,981		5,639		5,300		204		—
Commercial and Industrial			5,741		4,252		3,066		6,046		4,331		1,051		359
Agriculture			9,169		28,801		29,151		31,742		5,878		3,291		—
1st lien			2,196		2,015		2,870		4,186		2,016		180		—
Junior lien			200		301		136		272		145		55		—
Total 1-4 family			2,396		2,316		3,006		4,458		2,161		235		—
Multifamily residential			4,765		6,469		6,548		—		4,765		—		—
Home equity lines of credit			1,684		1,416		1,563		2,653		1,601		83		—
Other consumer			466		543		460		542		263		183		20
Total consumer			2,150		1,959		2,023		3,195		1,864		266		20
Other			17		—		112		703		—		17		—
Total		$	43,966		62,476		67,691		53,041		38,523		5,064		379

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

		Accruing 30-89 Days Delinquent Loans,  by Loan Type												% Change from
(Dollars in thousands)		Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Jun 30, 2021			Mar 31, 2022			Dec 31, 2021			Jun 30, 2021
Custom and owner occupied construction		$	2,046		$	703		$	1,243		$	—		191	%		65	%		n/m
Pre-sold and spec construction			602			—			443			70		n/m			36	%		760	%
Total residential construction			2,648			703			1,686			70		277	%		57	%		3,683	%
Land development			365			317			—			—		15	%		n/m			n/m
Consumer land or lots			337			28			149			—		1,104	%		126	%		n/m
Unimproved land			590			—			305			307		n/m			93	%		92	%
Developed lots for operative builders			—			142			—			—		(100	)%		n/m			n/m
Commercial lots			—			54			—			—		(100	)%		n/m			n/m
Other construction			—			—			30,788			—		n/m			(100	)%		n/m
Total land, lot and other construction			1,292			541			31,242			307		139	%		(96	)%		321	%
Owner occupied			1,560			3,778			1,739			2,243		(59	)%		(10	)%		(30	)%
Non-owner occupied			123			266			1,558			574		(54	)%		(92	)%		(79	)%
Total commercial real estate			1,683			4,044			3,297			2,817		(58	)%		(49	)%		(40	)%
Commercial and industrial			5,969			3,275			4,732			2,947		82	%		26	%		103	%
Agriculture			851			162			459			837		425	%		85	%		2	%
1st lien			329			2,963			2,197			736		(89	)%		(85	)%		(55	)%
Junior lien			105			78			87			106		35	%		21	%		(1	)%
Total 1-4 family			434			3,041			2,284			842		(86	)%		(81	)%		(48	)%
Home equity lines of credit			1,071			1,315			1,994			1,942		(19	)%		(46	)%		(45	)%
Other consumer			1,140			1,097			1,681			919		4	%		(32	)%		24	%
Total consumer			2,211			2,412			3,675			2,861		(8	)%		(40	)%		(23	)%
States and political subdivisions			7			21			1,733			—		(67	)%		(100	)%		n/m
Other			1,493			1,881			1,458			1,395		(21	)%		2	%		7	%
Total		$	16,588		$	16,080		$	50,566		$	12,076		3	%		(67	)%		37	%

______________________________

n/m - not measurable

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

		Net Charge-Offs (Recoveries), Year-to-Date Period Ending, By Loan Type													Charge-Offs		Recoveries
(Dollars in thousands)		Jun 30, 2022				Mar 31, 2022			Dec 31, 2021			Jun 30, 2021			Jun 30, 2022		Jun 30, 2022
Custom and owner occupied construction		$	—			—			—			—			—		—
Pre-sold and spec construction			(8	)		(4	)		(15	)		(8	)		—		8
Total residential construction			(8	)		(4	)		(15	)		(8	)		—		8
Land development			(21	)		(21	)		(233	)		(77	)		—		21
Consumer land or lots			(10	)		(10	)		(165	)		(164	)		—		10
Unimproved land			(1	)		—			(241	)		(21	)		—		1
Developed lots for operative builders			—			—			—			—			—		—
Commercial lots			—			—			—			—			—		—
Other construction			—			—			—			—			—		—
Total land, lot and other construction			(32	)		(31	)		(639	)		(262	)		—		32
Owner occupied			229			(386	)		(423	)		(70	)		1,642		1,413
Non-owner occupied			(3	)		(2	)		(357	)		(503	)		—		3
Total commercial real estate			226			(388	)		(780	)		(573	)		1,642		1,416
Commercial and industrial			(458	)		(449	)		41			(218	)		308		766
Agriculture			(4	)		(2	)		(20	)		(6	)		—		4
1st lien			(56	)		(9	)		(331	)		(237	)		—		56
Junior lien			(297	)		(78	)		(650	)		(475	)		—		297
Total 1-4 family			(353	)		(87	)		(981	)		(712	)		—		353
Multifamily residential			—			—			(40	)		(40	)		—		—
Home equity lines of credit			(51	)		(5	)		(621	)		(23	)		44		95
Other consumer			166			55			236			74			298		132
Total consumer			115			50			(385	)		51			342		227
States and political subdivisions			—			—			—			—			—		—
Other			3,207			1,761			5,148			3,329			4,748		1,541
Total		$	2,693			850			2,329			1,561			7,040		4,347

Visit our website at www.glacierbancorp.com

CONTACT: Randall M. Chesler, CEO

(406) 751-4722

Ron J. Copher, CFO

(406) 751-7706