Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended September 30, 2023

Rhea-AI Summary

Glacier Bancorp reports a decrease in net income for the third quarter of 2023, primarily due to increased funding costs. The company announces the signing of a definitive agreement to acquire Community Financial Group, Inc., parent company of Wheatland Bank.

Positive

• Interest income increased by 7% in the current quarter compared to the prior quarter. Total deposits and retail repurchase agreements increased by 10% during the current quarter. The loan portfolio increased by 5% during the current quarter. The loan yield increased by 15 basis points compared to the prior quarter. The Company declared a quarterly dividend of $0.33 per share. The Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., parent company of Wheatland Bank, with total assets of $763 million.

Negative

• Net income decreased by 34% in the current quarter compared to the prior year third quarter. Net income for the first nine months of 2023 decreased by 25% compared to the prior year. Diluted earnings per share decreased by 35% in the current quarter compared to the prior year third quarter. Diluted earnings per share for the first nine months of 2023 decreased by 25% compared to the prior year. The decrease in net income is primarily due to increased funding costs outpacing the increase in interest income.

3rd Quarter 2023 Highlights:

• Net income was $52.4 million for the current quarter, a decrease of $2.6 million, or 5 percent, from the prior quarter net income of $55.0 million. Net income for the current quarter decreased $26.9 million, or 34 percent, from the prior year third quarter net income of $79.3 million.
• Interest income of $265 million in the current quarter increased $17.5 million, or 7 percent, over the prior quarter interest income of $247 million. Interest income in the current quarter increased $50.5 million, or 24 percent, over the prior year third quarter.
• Total deposits and retail repurchase agreements of $21.895 billion at the current quarter end increased $530 million, or 10 percent annualized, during the current quarter.
• Non-interest bearing deposits remained stable in the current quarter with a $7.0 million increase over the prior quarter.
• The loan portfolio of $16.135 billion increased $180 million, or 5 percent annualized, during the current quarter.
• The loan yield for the current quarter of 5.27 percent, increased 15 basis points, compared to 5.12 percent in the prior quarter and increased 60 basis points from the prior year third quarter loan yield of 4.67 percent.
• Early stage delinquencies (accruing loans 30-89 days past due) of $15.3 million at September 30, 2023 decreased $9.6 million from the prior quarter.
• The Company declared a quarterly dividend of $0.33 per share. The Company has declared 154 consecutive quarterly dividends and has increased the dividend 49 times.
• The Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank, a leading eastern Washington community bank headquartered in Spokane with total assets of $763 million as of September 30, 2023. This will be the Company’s 25th acquisition since 2000.
  

Year-to-date 2023 Highlights

• Net Income for the first nine months of 2023 was $169 million, a decrease of $54.9 million, or 25 percent, from the $224 million for the prior year first nine months net income.
• Interest income for the first nine months of 2023 was $744 million, an increase of $139 million, or 23 percent over the first nine months of the prior year interest income of $605 million.
• Total core deposits and retail repurchase agreements of $21.827 billion at the current quarter end increased $307 million, or 1 percent, during the first nine months of 2023.
• The loan portfolio of $16.135 billion increased $888 million, or 8 percent annualized, during the first nine months of the current year. The loan portfolio, excluding the Paycheck Protection Program (“PPP”) loans, increased $1.578 billion, or 16 percent annualized, during the first nine months of the prior year.
• The loan yield was 5.14 percent for the first nine months of the current year, an increase of 54 basis points from the first nine months of the prior year loan yield of 4.60 percent.
• Stockholders’ equity of $2.875 billion increased $31.3 million, or 1 percent, during the first nine months of the current year.
• Dividends declared in the first nine months of 2023 were $0.99 per share.
  

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, 2023				Jun 30, 2023			Mar 31, 2023			Sep 30, 2022			Sep 30, 2023			Sep 30, 2022
Operating results
Net income	$	52,445			54,955			61,211			79,338			168,611			223,525
Basic earnings per share	$	0.47			0.50			0.55			0.72			1.52			2.02
Diluted earnings per share	$	0.47			0.50			0.55			0.72			1.52			2.02
Dividends declared per share	$	0.33			0.33			0.33			0.33			0.99			0.99
Market value per share
Closing	$	28.50			31.17			42.01			49.13			28.50			49.13
High	$	36.45			42.21			50.03			56.10			50.03			60.69
Low	$	26.84			26.77			37.07			46.08			26.77			44.43
Selected ratios and other data
Number of common stock shares outstanding		110,879,365			110,873,887			110,868,713			110,766,954			110,879,365			110,766,954
Average outstanding shares - basic		110,877,534			110,870,964			110,824,648			110,766,502			110,857,788			110,752,231
Average outstanding shares - diluted		110,886,959			110,875,535			110,881,708			110,833,594			110,882,718			110,811,267
Return on average assets (annualized)		0.75	%		0.81	%		0.93	%		1.18	%		0.83	%		1.13	%
Return on average equity (annualized)		7.12	%		7.52	%		8.54	%		10.94	%		7.72	%		10.14	%
Efficiency ratio		63.31	%		62.73	%		60.39	%		52.76	%		62.10	%		55.14	%
Dividend payout		70.21	%		66.00	%		60.00	%		45.83	%		65.13	%		49.01	%
Loan to deposit ratio		79.25	%		79.92	%		77.09	%		67.98	%		79.25	%		67.98	%
Number of full time equivalent employees		3,314			3,369			3,390			3,396			3,314			3,396
Number of locations		221			222			222			222			221			222
Number of ATMs		274			274			263			272			274			272

KALISPELL, Mont., Oct. 19, 2023 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $52.4 million for the current quarter, a decrease of $26.9 million, or 34 percent, from the $79.3 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.47 per share, a decrease of 35 percent from the prior year third quarter diluted earnings per share of $0.72. The decrease in net income compared to the prior quarter and prior year third quarter was primarily due to the continued increase in funding costs, which has outpaced the increase in interest income. “Our strong core deposit growth in the quarter shows the strength of our business model and employees. We were able to significantly grow deposits this quarter by leveraging existing banking relationships across all of our divisions,” said Randy Chesler, President and Chief Executive Officer. “We were also pleased to see the increase in interest income for the quarter, reflecting higher yields on loans and investments.”

Net income for the nine months ended September 30, 2023 was $169 million, a decrease of $54.9 million, or 25 percent, from the $224 million for the first nine months in the prior year, which was primarily driven by the increase in funding costs outpacing the increase in interest income. Diluted earnings per share for the first nine months of 2023 was $1.52 per share, a decrease of 25 percent from the prior year first nine months diluted earnings per share of $2.02.

On August 8, 2023, the Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, “Wheatland”), headquartered in Spokane, Washington. Wheatland has 14 branches in eastern Washington with total assets of $763 million, total loans of $491 million and total deposits of $609 million as of September 30, 2023. The acquisition is subject to required regulatory and shareholder approvals and other customary conditions of closing and is expected to be completed in the fourth quarter of 2023.

Asset Summary

														$ Change from
(Dollars in thousands)	Sep 30, 2023				Jun 30, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2023			Dec 31, 2022			Sep 30, 2022
Cash and cash equivalents	$	1,672,094			1,051,320			401,995			425,212			620,774			1,270,099			1,246,882
Debt securities, available-for-sale		4,741,738			4,999,820			5,307,307			5,755,076			(258,082	)		(565,569	)		(1,013,338	)
Debt securities, held-to-maturity		3,553,805			3,608,289			3,715,052			3,756,634			(54,484	)		(161,247	)		(202,829	)
Total debt securities		8,295,543			8,608,109			9,022,359			9,511,710			(312,566	)		(726,816	)		(1,216,167	)
Loans receivable
Residential real estate		1,653,777			1,588,175			1,446,008			1,368,368			65,602			207,769			285,409
Commercial real estate		10,292,446			10,220,751			9,797,047			9,582,989			71,695			495,399			709,457
Other commercial		2,916,785			2,888,810			2,799,668			2,729,717			27,975			117,117			187,068
Home equity		869,963			862,240			822,232			793,556			7,723			47,731			76,407
Other consumer		402,075			394,986			381,857			376,603			7,089			20,218			25,472
Loans receivable		16,135,046			15,954,962			15,246,812			14,851,233			180,084			888,234			1,283,813
Allowance for credit losses		(192,271	)		(189,385	)		(182,283	)		(178,191	)		(2,886	)		(9,988	)		(14,080	)
Loans receivable, net		15,942,775			15,765,577			15,064,529			14,673,042			177,198			878,246			1,269,733
Other assets		2,153,149			2,102,673			2,146,492			2,122,990			50,476			6,657			30,159
Total assets	$	28,063,561			27,527,679			26,635,375			26,732,954			535,882			1,428,186			1,330,607

Total debt securities of $8.296 billion at September 30, 2023 decreased $313 million, or 4 percent, during the current quarter and decreased $1.216 billion, or 13 percent, from the prior year third quarter. The Company continues to utilize cash flow from the securities portfolio to primarily fund loan growth and maintain a strong cash position. The Company increased its cash position by $621 million during the current quarter to further strengthen its liquidity position. Debt securities represented 30 percent of total assets at September 30, 2023, compared to 34 percent at December 31, 2022, and 36 percent at September 30, 2022.

The loan portfolio of $16.135 billion increased $180 million, or 5 percent annualized, during the current quarter with the largest dollar increase in commercial real estate, which increased $71.7 million, or 3 percent annualized. The loan portfolio increased $1.284 billion, or 9 percent, from the prior year third quarter with the largest dollar increase in commercial real estate loans, which increased $709 million, or 7 percent.

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, 2023				Jun 30, 2023			Dec 31, 2022			Sep 30, 2022
Allowance for credit losses
Balance at beginning of period	$	182,283			182,283			172,665			172,665
Provision for credit losses		16,609			11,514			17,433			11,373
Charge-offs		(10,284	)		(7,083	)		(14,970	)		(10,905	)
Recoveries		3,663			2,671			7,155			5,058
Balance at end of period	$	192,271			189,385			182,283			178,191
Provision for credit losses
Loan portfolio	$	16,609			11,514			17,433			11,373
Unfunded loan commitments		(4,827	)		(3,271	)		2,530			2,466
Total provision for credit losses	$	11,782			8,243			19,963			13,839
Other real estate owned	$	—			—			—			—
Other foreclosed assets		48			52			32			42
Accruing loans 90 days or more past due		3,855			3,876			1,559			2,524
Non-accrual loans		38,380			28,094			31,151			32,493
Total non-performing assets	$	42,283			32,022			32,742			35,059
Non-performing assets as a percentage of subsidiary assets		0.15	%		0.12	%		0.12	%		0.13	%
Allowance for credit losses as a percentage of non-performing loans		455	%		592	%		557	%		508	%
Allowance for credit losses as a percentage of total loans		1.19	%		1.19	%		1.20	%		1.20	%
Net charge-offs as a percentage of total loans		0.04	%		0.03	%		0.05	%		0.04	%
Accruing loans 30-89 days past due	$	15,253			24,863			20,967			10,922
U.S. government guarantees included in non-performing assets	$	1,057			1,035			2,312			4,930

Non-performing assets of $42.3 million at September 30, 2023 increased $10.3 million, or 32 percent, over the quarter and increased $7.2 million, or 21 percent, over the prior year third quarter. Non-performing assets as a percentage of subsidiary assets at September 30, 2023 was 0.15 percent compared to 0.12 percent in the prior quarter and 0.13 percent in the prior year third quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $15.3 million at September 30, 2023 decreased $9.6 million from the prior quarter and decreased $5.7 million from prior year end. Early stage delinquencies as a percentage of loans at September 30, 2023 was 0.09 percent compared to 0.16 for the prior quarter end and 0.14 percent for the prior year end.

The current quarter credit loss expense of $3.5 million included $5.1 million of credit loss expense from loans and $1.6 million 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, 2023 was 1.19 percent compared to 1.20 percent in 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 2023	$	5,095			$	2,209		1.19	%		0.09	%		0.15	%
Second quarter 2023		5,254				2,473		1.19	%		0.16	%		0.12	%
First quarter 2023		6,260				1,939		1.20	%		0.16	%		0.12	%
Fourth quarter 2022		6,060				1,968		1.20	%		0.14	%		0.12	%
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	%

Net charge-offs for the current quarter were $2.2 million compared to $2.5 million in the prior quarter and $3.2 million for the prior year third quarter. Net charge-offs of $2.2 million included $1.7 million in deposit overdraft net charge-offs and $544 thousand of net loan charge-offs.

The current quarter provision for credit loss expense for loans was $5.1 million, which was a decrease of $160 thousand from the prior quarter and a $3.3 million decrease from the prior year third quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses 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, 2023			Jun 30, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2023			Dec 31, 2022			Sep 30, 2022
Deposits
Non-interest bearing deposits	$	6,465,353		6,458,394		7,690,751		8,294,363		6,959			(1,225,398	)		(1,829,010	)
NOW and DDA accounts		5,253,367		5,154,442		5,330,614		5,462,707		98,925			(77,247	)		(209,340	)
Savings accounts		2,872,362		2,808,571		3,200,321		3,305,333		63,791			(327,959	)		(432,971	)
Money market deposit accounts		2,994,631		3,094,302		3,472,281		3,905,676		(99,671	)		(477,650	)		(911,045	)
Certificate accounts		2,742,017		2,014,104		880,589		907,560		727,913			1,861,428			1,834,457
Core deposits, total		20,327,730		19,529,813		20,574,556		21,875,639		797,917			(246,826	)		(1,547,909	)
Wholesale deposits		67,434		478,417		31,999		4,003		(410,983	)		35,435			63,431
Deposits, total		20,395,164		20,008,230		20,606,555		21,879,642		386,934			(211,391	)		(1,484,478	)
Repurchase agreements		1,499,696		1,356,862		945,916		887,483		142,834			553,780			612,213
Deposits and repurchase agreements, total		21,894,860		21,365,092		21,552,471		22,767,125		529,768			342,389			(872,265	)
Federal Home Loan Bank advances		—		—		1,800,000		705,000		—			(1,800,000	)		(705,000	)
FRB Bank Term Funding		2,740,000		2,740,000		—		—		—			2,740,000			2,740,000
Other borrowed funds		73,752		75,819		77,293		77,671		(2,067	)		(3,541	)		(3,919	)
Subordinated debentures		132,903		132,863		132,782		132,742		40			121			161
Other liabilities		347,452		287,379		229,524		278,059		60,073			117,928			69,393
Total liabilities	$	25,188,967		24,601,153		23,792,070		23,960,597		587,814			1,396,897			1,228,370

During the current quarter, the Company continued to focus on its diversified deposit and repurchase agreement product offerings. Total deposits and retail repurchase agreements of $21.895 billion at the current quarter end increased $530 million, or 10 percent annualized, during the current quarter. With the increased core deposits, the Company allowed $411 million of higher cost wholesale deposits to mature. Excluding wholesale deposits, core deposits and retail repurchase agreements increased $941 million, or 18 annualized percent, during the current quarter. Non-interest bearing deposits increased $7.0 million over the prior quarter, representing 32 percent of total core deposits at September 30, 2023 compared to 37 percent at December 31, 2022 and 38 percent at September 30, 2022.

The Company’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. The Company has available liquidity of $14.8 billion including cash, borrowing capacity from the FHLB and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.

Stockholders’ Equity Summary

														$ Change from
(Dollars in thousands, except per share data)	Sep 30, 2023				Jun 30, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2023			Dec 31, 2022			Sep 30, 2022
Common equity	$	3,374,961			3,357,313			3,312,097			3,267,505			17,648			62,864			107,456
Accumulated other comprehensive loss		(500,367	)		(430,787	)		(468,792	)		(495,148	)		(69,580	)		(31,575	)		(5,219	)
Total stockholders’ equity		2,874,594			2,926,526			2,843,305			2,772,357			(51,932	)		31,289			102,237
Goodwill and core deposit intangible, net		(1,019,690	)		(1,022,118	)		(1,026,994	)		(1,029,658	)		2,428			7,304			9,968
Tangible stockholders’ equity	$	1,854,904			1,904,408			1,816,311			1,742,699			(49,504	)		38,593			112,205

Stockholders’ equity to total assets		10.24	%		10.63	%		10.67	%		10.37	%
Tangible stockholders’ equity to total tangible assets		6.86	%		7.18	%		7.09	%		6.78	%
Book value per common share	$	25.93			26.40			25.67			25.03			(0.47	)		0.26		0.90
Tangible book value per common share	$	16.73			17.18			16.40			15.73			(0.45	)		0.33		1.00

Tangible stockholders’ equity of $1.855 billion at September 30, 2023 decreased $49.5 million, or 3 percent, compared to the prior quarter and was due to an increase in net unrealized losses (after-tax) on available-for-sale debt securities during the current quarter. Tangible stockholders’ equity increased $112 million, or 6 percent, from September 30, 2022, which was primarily due to earnings retention. Tangible book value per common share of $16.73 at the current quarter end increased $0.33 per share, or 2 percent, from the prior year end. The tangible book value per common share increased $1.00 per share from the prior year third quarter.

Cash Dividends
On September 27, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The current quarter dividend of $0.33 per share was consistent with the dividend declared in the prior quarter and the prior year third quarter. The dividend was payable October 19, 2023 to shareholders of record on October 10, 2023. The dividend was the Company’s 154th consecutive regular 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, 2023 
Compared to June 30, 2023, March 31, 2023 and September 30, 2022

Income Summary

	Three Months ended													$ Change from
(Dollars in thousands)	Sep 30, 2023				Jun 30, 2023			Mar 31, 2023			Sep 30, 2022			Jun 30, 2023			Mar 31, 2023			Sep 30, 2022
Net interest income
Interest income	$	264,906			247,365			231,888			214,402			17,541			33,018			50,504
Interest expense		97,852			75,385			45,696			9,075			22,467			52,156			88,777
Total net interest income		167,054			171,980			186,192			205,327			(4,926	)		(19,138	)		(38,273	)
Non-interest income
Service charges and other fees		19,304			18,967			17,771			18,970			337			1,533			334
Miscellaneous loan fees and charges		4,322			4,162			3,967			4,040			160			355			282
Gain on sale of loans		4,046			3,528			2,400			3,846			518			1,646			200
Loss on sale of debt securities		(65	)		(23	)		(114	)		(85	)		(42	)		49			20
Other income		2,633			2,445			3,871			3,635			188			(1,238	)		(1,002	)
Total non-interest income		30,240			29,079			27,895			30,406			1,161			2,345			(166	)
Total income	$	197,294			201,059			214,087			235,733			(3,765	)		(16,793	)		(38,439	)
Net interest margin (tax-equivalent)		2.58	%		2.74	%		3.08	%		3.34	%

Net Interest Income
The current quarter interest income of $265 million increased $17.5 million, or 7 percent, over the prior quarter and was driven primarily by the increase in the loan yields and an increase in interest-bearing cash. The current quarter interest income increased $50.5 million, or 24 percent, over the prior year third quarter and was principally due to loan growth and increased loan yields. The loan yield of 5.27 percent in the current quarter increased 15 basis points from the prior quarter loan yield of 5.12 percent and increased 60 basis points from the prior year third quarter loan yield of 4.67 percent.

The current quarter interest expense of $97.9 million increased $22.5 million, or 30 percent, over the prior quarter and increased $88.8 million, or 978 percent, over the prior year third quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 1.03 percent for the current quarter compared to 0.57 percent in the prior quarter and 0.06 percent for the prior year third quarter. The total cost of funding (including non-interest bearing deposits) was 1.58 percent in the current quarter compared to 1.26 percent in the prior quarter and 0.15 percent in the prior year third quarter, which was the result of the increased deposit 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 2.58 percent compared to 2.74 percent in the prior quarter and 3.34 percent in the prior year third quarter. Although the net interest margin has been negatively impacted by the increase in interest rates in the current year, the Company experienced a slower pace in the decline in the net interest margin during the current quarter. The current quarter decrease in net interest margin was 16 basis points compared to a decrease of 34 basis points in the prior quarter and a decrease of 22 basis points in the first quarter of the current year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.55 percent compared to 2.72 percent in the prior quarter and 3.29 percent in the prior year third quarter.

Non-interest Income
Non-interest income for the current quarter totaled $30.2 million, which was an increase of $1.2 million, or 4 percent, over the prior quarter. Gain on the sale of residential loans of $4.0 million for the current quarter increased $518 thousand, or 15 percent, compared to the prior quarter and increased $200 thousand, or 5 percent, from the prior year third quarter. Service charges and other fees of $19.3 million in the current quarter increased $337 thousand, or 2 percent, over the prior quarter and increased $334 thousand, or 2 percent, over the prior year third quarter.

Non-interest Expense Summary

	Three Months ended									$ Change from
(Dollars in thousands)	Sep 30, 2023			Jun 30, 2023		Mar 31, 2023		Sep 30, 2022		Jun 30, 2023			Mar 31, 2023			Sep 30, 2022
Compensation and employee benefits	$	77,387		78,764		81,477		80,612		(1,377	)		(4,090	)		(3,225	)
Occupancy and equipment		10,553		10,827		11,665		10,797		(274	)		(1,112	)		(244	)
Advertising and promotions		4,052		3,733		4,235		3,768		319			(183	)		284
Data processing		8,730		8,402		8,109		7,716		328			621			1,014
Other real estate owned and foreclosed assets		15		14		12		66		1			3			(51	)
Regulatory assessments and insurance		6,060		5,314		4,903		3,339		746			1,157			2,721
Core deposit intangibles amortization		2,428		2,427		2,449		2,665		1			(21	)		(237	)
Other expenses		20,351		21,123		22,132		21,097		(772	)		(1,781	)		(746	)
Total non-interest expense	$	129,576		130,604		134,982		130,060		(1,028	)		(5,406	)		(484	)

Total non-interest expense of $130 million for the current quarter decreased $1.0 million, or 79 basis points, over the prior quarter and decreased $484 thousand, or 37 basis points, over the prior year third quarter. Compensation and employee benefits expense of $77.4 million for the current quarter decreased $1.4 million, or 2 percent, from the prior quarter and decreased $3.2 million, or 4 percent, over the prior year third quarter, which was driven primarily by decreases in accrued expenses for employee benefits. Regulatory assessments and insurance of $6.1 million, increased $2.7 million, or 81 percent, over the prior year third quarter and was primarily due to the Federal Deposit Insurance Corporation (“FDIC”) uniformly increasing all depository institutions premiums at the beginning of the current year. “The reduction in non-interest expense reflects the Company’s continued focus on staffing levels and containing costs in other areas,” said Ron Copher, Chief Financial Officer.

Federal and State Income Tax Expense
Tax expense during the third quarter of 2023 was $11.7 million, a decrease of $993 thousand, or 8 percent, compared to the prior quarter and a decrease of $6.3 million, or 35 percent, from the prior year third quarter. The effective tax rate in the current quarter was 18.3 percent compared to 18.8 percent in the prior quarter and 18.5 percent in the prior year third quarter.

Efficiency Ratio
The efficiency ratio was 63.31 percent in the current quarter compared to 62.73 percent in the prior quarter and 52.76 percent in the prior year third quarter. The increase from prior quarter and prior year third quarter was primarily attributable to the increase in interest expense in the current quarter that outpaced the increase in interest income.

Operating Results for Nine Months Ended September 30, 2023
Compared to September 30, 2022

Income Summary

	Nine Months ended
(Dollars in thousands)	Sep 30, 2023				Sep 30, 2022				$ Change				% Change
Net interest income
Interest income	$	744,159			$	604,555			$	139,604			23	%
Interest expense		218,933				20,235				198,698			982	%
Total net interest income		525,226				584,320				(59,094	)		(10	)%
Non-interest income
Service charges and other fees		56,042				53,390				2,652			5	%
Miscellaneous loan fees and charges		12,451				11,445				1,006			9	%
Gain on sale of loans		9,974				17,857				(7,883	)		(44	)%
(Loss) gain on sale of debt securities		(202	)			101				(303	)		(300	)%
Other income		8,949				9,456				(507	)		(5	)%
Total non-interest income		87,214				92,249				(5,035	)		(5	)%
Total Income	$	612,440			$	676,569			$	(64,129	)		(9	)%
Net interest margin (tax-equivalent)		2.79	%			3.26	%

Net Interest Income
Net-interest income of $525 million for the first nine months of 2023 decreased $59.1 million, or 10 percent, over the same period of 2022 and was primarily driven by increased interest expense. Interest income of $744 million for the first nine months in the current year increased $139.6 million, or 23 percent, from the same period in the prior year and was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The loan yield was 5.14 percent for the first nine months of the current year, an increase of 54 basis points from the first nine months of the prior year loan yield of 4.60 percent.

Interest expense of $218.9 million for the first nine months of 2023 increased $199 million, or 982 percent, over the same period in the prior year and was the result of increased borrowings and higher interest rates on borrowings and deposits. Core deposit cost (including non-interest bearing deposits) was 0.62 percent for the nine months of 2023 compared to 0.06 percent for the same period in 2022. The total funding cost (including non-interest bearing deposits) for the first nine months of the current year was 1.22 percent, which was an increase of 110 basis points over the prior year first nine months of 0.12 percent.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first nine months of 2023 was 2.79 percent, a 47 basis points decrease from the net interest margin of 3.26 percent for the same period in the prior year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.77 percent for the first nine months of the current year, which was a 41 basis points decrease from the core margin of 3.18 percent in the same period of the prior year.

Non-interest Income
Non-interest income of $87.2 million for the first nine months of 2023 decreased $5.0 million, or 5 percent, over the same period last year and was primarily due to the decrease in gain on sale of residential loans, which was partially offset by the increase in service charges and other fees. Gain on sale of residential loans of $10.0 million in the current year decreased by $7.9 million, or 44 percent, over the prior year as result of the reduction in residential purchase and refinance activity as mortgage rates significantly increased during the current year. Miscellaneous loan fees of $12.5 million, increased $1.0 million, or 9 percent, which was primarily driven by increased credit card interchange fees due to increased activity.

Non-interest Expense Summary

	Nine Months ended
(Dollars in thousands)	Sep 30, 2023			Sep 30, 2022			$ Change				% Change
Compensation and employee benefits	$	237,628		$	239,489		$	(1,861	)		(1	)%
Occupancy and equipment		33,045			32,527			518			2	%
Advertising and promotions		12,020			10,766			1,254			12	%
Data processing		25,241			22,744			2,497			11	%
Other real estate owned and foreclosed assets		41			72			(31	)		(43	)%
Regulatory assessments and insurance		16,277			9,479			6,798			72	%
Core deposit intangibles amortization		7,304			7,994			(690	)		(9	)%
Other expenses		63,606			66,818			(3,212	)		(5	)%
Total non-interest expense	$	395,162		$	389,889		$	5,273			1	%

Total non-interest expense of $395 million for the first nine months of 2023 increased $5.3 million, or 1 percent, over the same period in the prior year. Regulatory assessments and insurance of $16.3 million for the first nine months of 2023 increased $6.8 million, or 72 percent, over the prior year and was primarily due to the FDIC uniformly increasing all depository institutions premiums beginning in 2023. Other expense of $63.6 million for the first nine months of 2023 decreased $3.2 million, or 5 percent, from the first nine months of the prior year and was primarily due to the decrease in acquisition-related expenses along with changes in several miscellaneous categories. Acquisition-related expenses were $842 thousand in the first nine months of the current year compared to $9.2 million in the same period of last year.

Provision for Credit Losses
The provision for credit loss expense was $11.8 million for the first nine months of 2023 and decreased $2.1 million, or 15 percent, over the same period of the prior year. The provision for credit loss expense for the first nine months of 2023 included provision for credit loss expense of $16.6 million on the loan portfolio and credit loss benefit of $4.8 million on the unfunded loan commitments. Net charge-offs during the first nine months of the current year were $6.6 million compared to $5.8 million during the same period of the prior year.

Federal and State Income Tax Expense
Tax expense of $36.9 million for the first nine months of 2023 decreased $12.4 million, or 25 percent, over the first nine months of the prior year. The effective tax rate for first nine months of 2023 was 17.9 percent compared to 18.1 percent for the first nine months of 2022.

Efficiency Ratio
The efficiency ratio was 62.10 percent for the first nine months of 2023 compared to 55.14 percent for the same period last year. The increase from the prior year was primarily attributable to the increase in interest expense in the current year that outpaced the increase in interest income.

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 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 based on assumptions 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 made in this news release:

• risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
• changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
• legislative or regulatory changes, including increased banking and consumer protection regulations, that may adversely affect the Company’s business;
• risks related to overall economic conditions, including the impact on the economy of a rising interest rate environment, inflationary pressures, and geopolitical instability, including the wars in Ukraine and the Middle East;
• risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;
• costs or difficulties related to the completion and integration of acquisitions;
• impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
• reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
• deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company's ability to obtain and maintain customers;
• changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
• 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 through acquisitions;
• risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
• material failure, potential interruption or breach in security of the Company’s systems or changes in technological which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
• risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
• success in managing risks involved in the foregoing; and
• 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 20, 2023. Please note that our conference call host no longer offers a general dial-in number. 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/BIbe718214dea94214b3ab02d160926dd0. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/w8zz3hr8. 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, 2023				Jun 30, 2023			Dec 31, 2022			Sep 30, 2022
Assets
Cash on hand and in banks	$	264,067			285,920			300,194			260,456
Interest bearing cash deposits		1,408,027			765,400			101,801			164,756
Cash and cash equivalents		1,672,094			1,051,320			401,995			425,212
Debt securities, available-for-sale		4,741,738			4,999,820			5,307,307			5,755,076
Debt securities, held-to-maturity		3,553,805			3,608,289			3,715,052			3,756,634
Total debt securities		8,295,543			8,608,109			9,022,359			9,511,710
Loans held for sale, at fair value		29,027			35,006			12,314			21,720
Loans receivable		16,135,046			15,954,962			15,246,812			14,851,233
Allowance for credit losses		(192,271	)		(189,385	)		(182,283	)		(178,191	)
Loans receivable, net		15,942,775			15,765,577			15,064,529			14,673,042
Premises and equipment, net		415,343			405,407			398,100			395,639
Other real estate owned and foreclosed assets		48			52			32			42
Accrued interest receivable		104,476			88,351			83,538			93,300
Deferred tax asset		203,745			179,815			193,187			204,351
Core deposit intangible, net		34,297			36,725			41,601			44,265
Goodwill		985,393			985,393			985,393			985,393
Non-marketable equity securities		11,330			10,014			82,015			38,215
Bank-owned life insurance		170,175			169,195			169,068			168,187
Other assets		199,315			192,715			181,244			171,878
Total assets	$	28,063,561			27,527,679			26,635,375			26,732,954
Liabilities
Non-interest bearing deposits	$	6,465,353			6,458,394			7,690,751			8,294,363
Interest bearing deposits		13,929,811			13,549,836			12,915,804			13,585,279
Securities sold under agreements to repurchase		1,499,696			1,356,862			945,916			887,483
FHLB advances		—			—			1,800,000			705,000
FRB Bank Term Funding		2,740,000			2,740,000			—			—
Other borrowed funds		73,752			75,819			77,293			77,671
Subordinated debentures		132,903			132,863			132,782			132,742
Accrued interest payable		91,874			47,742			4,331			2,740
Other liabilities		255,578			239,637			225,193			275,319
Total liabilities		25,188,967			24,601,153			23,792,070			23,960,597
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		1,109			1,109			1,108			1,108
Paid-in capital		2,348,305			2,346,422			2,344,005			2,342,452
Retained earnings - substantially restricted		1,025,547			1,009,782			966,984			923,945
Accumulated other comprehensive loss		(500,367	)		(430,787	)		(468,792	)		(495,148	)
Total stockholders’ equity		2,874,594			2,926,526			2,843,305			2,772,357
Total liabilities and stockholders’ equity	$	28,063,561			27,527,679			26,635,375			26,732,954

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
	Three Months ended													Nine Months ended
(Dollars in thousands, except per share data)	Sep 30, 2023				Jun 30, 2023			Mar 31, 2023			Sep 30, 2022			Sep 30, 2023			Sep 30, 2022
Interest Income
Investment securities	$	53,397			47,658			43,642			43,722			144,697			125,217
Residential real estate loans		18,594			17,076			15,838			13,738			51,508			42,279
Commercial loans		173,437			164,587			155,682			142,692			493,706			398,507
Consumer and other loans		19,478			18,044			16,726			14,250			54,248			38,552
Total interest income		264,906			247,365			231,888			214,402			744,159			604,555
Interest Expense
Deposits		54,697			31,700			12,545			3,279			98,942			9,884
Securities sold under agreements to repurchase		10,972			8,607			4,606			675			24,185			1,435
Federal Home Loan Bank advances		—			3,305			23,605			3,318			26,910			4,628
FRB Bank Term Funding		30,229			29,899			3,032			—			63,160			—
Other borrowed funds		489			443			496			214			1,428			698
Subordinated debentures		1,465			1,431			1,412			1,589			4,308			3,590
Total interest expense		97,852			75,385			45,696			9,075			218,933			20,235
Net Interest Income		167,054			171,980			186,192			205,327			525,226			584,320
Provision for credit losses		3,539			2,773			5,470			8,341			11,782			13,839
Net interest income after provision for credit losses		163,515			169,207			180,722			196,986			513,444			570,481
Non-Interest Income
Service charges and other fees		19,304			18,967			17,771			18,970			56,042			53,390
Miscellaneous loan fees and charges		4,322			4,162			3,967			4,040			12,451			11,445
Gain on sale of loans		4,046			3,528			2,400			3,846			9,974			17,857
(Loss) gain on sale of debt securities		(65	)		(23	)		(114	)		(85	)		(202	)		101
Other income		2,633			2,445			3,871			3,635			8,949			9,456
Total non-interest income		30,240			29,079			27,895			30,406			87,214			92,249
Non-Interest Expense
Compensation and employee benefits		77,387			78,764			81,477			80,612			237,628			239,489
Occupancy and equipment		10,553			10,827			11,665			10,797			33,045			32,527
Advertising and promotions		4,052			3,733			4,235			3,768			12,020			10,766
Data processing		8,730			8,402			8,109			7,716			25,241			22,744
Other real estate owned and foreclosed assets		15			14			12			66			41			72
Regulatory assessments and insurance		6,060			5,314			4,903			3,339			16,277			9,479
Core deposit intangibles amortization		2,428			2,427			2,449			2,665			7,304			7,994
Other expenses		20,351			21,123			22,132			21,097			63,606			66,818
Total non-interest expense		129,576			130,604			134,982			130,060			395,162			389,889
Income Before Income Taxes		64,179			67,682			73,635			97,332			205,496			272,841
Federal and state income tax expense		11,734			12,727			12,424			17,994			36,885			49,316
Net Income	$	52,445			54,955			61,211			79,338			168,611			223,525

Glacier Bancorp, Inc.
Average Balance Sheets
	Three Months ended
	September 30, 2023										June 30, 2023
(Dollars in thousands)	Average Balance				Interest & Dividends			Average Yield/ Rate			Average Balance				Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	1,649,947			$	18,594		4.51	%		$	1,567,136			$	17,076		4.36	%
Commercial loans 1		13,120,479				174,822		5.29	%			12,950,934				165,874		5.14	%
Consumer and other loans		1,263,775				19,478		6.11	%			1,236,763				18,044		5.85	%
Total loans 2		16,034,201				212,894		5.27	%			15,754,833				200,994		5.12	%
Tax-exempt debt securities 3		1,732,227				14,486		3.34	%			1,743,852				14,462		3.32	%
Taxable debt securities 4		8,485,157				41,052		1.94	%			8,177,551				35,202		1.72	%
Total earning assets		26,251,585				268,432		4.06	%			25,676,236				250,658		3.92	%
Goodwill and intangibles		1,020,868										1,023,291
Non-earning assets		528,145										523,349
Total assets	$	27,800,598									$	27,222,876
Liabilities
Non-interest bearing deposits	$	6,461,350			$	—		—	%		$	6,584,082			$	—		—	%
NOW and DDA accounts		5,231,741				12,906		0.98	%			5,108,421				7,429		0.58	%
Savings accounts		2,840,620				3,492		0.49	%			2,846,015				1,064		0.15	%
Money market deposit accounts		3,039,177				12,646		1.65	%			3,256,007				10,174		1.25	%
Certificate accounts		2,462,266				23,151		3.73	%			1,451,218				8,878		2.45	%
Total core deposits		20,035,154				52,195		1.03	%			19,245,743				27,545		0.57	%
Wholesale deposits 5		188,523				2,502		5.27	%			330,655				4,155		5.04	%
Repurchase agreements		1,401,765				10,972		3.11	%			1,273,045				8,607		2.71	%
FHLB advances		—				—		—	%			245,055				3,305		5.33	%
FRB Bank Term Funding		2,740,000				30,229		4.38	%			2,740,000				29,899		4.38	%
Subordinated debentures and other borrowed funds		208,336				1,954		3.72	%			208,804				1,874		3.60	%
Total funding liabilities		24,573,778				97,852		1.58	%			24,043,302				75,385		1.26	%
Other liabilities		302,564										247,319
Total liabilities		24,876,342										24,290,621
Stockholders’ Equity
Common stock		1,109										1,108
Paid-in capital		2,347,323										2,345,438
Retained earnings		1,035,276										1,017,456
Accumulated other comprehensive loss		(459,452	)									(431,747	)
Total stockholders’ equity		2,924,256										2,932,255
Total liabilities and stockholders’ equity	$	27,800,598									$	27,222,876
Net interest income (tax-equivalent)					$	170,580									$	175,273
Net interest spread (tax-equivalent)								2.48	%									2.66	%
Net interest margin (tax-equivalent)								2.58	%									2.74	%

______________________________

¹ Includes tax effect of $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2023 and June 30, 2023, 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 $1.9 million and $1.8 million on tax-exempt debt securities income for the three months ended September 30, 2023 and June 30, 2023, respectively.
⁴ Includes tax effect of $215 thousand and $214 thousand on federal income tax credits for the three months ended September 30, 2023 and June 30, 2023, 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, 2023										September 30, 2022
(Dollars in thousands)	Average Balance				Interest & Dividends			Average Yield/ Rate			Average Balance				Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	1,649,947			$	18,594		4.51	%		$	1,338,606			$	13,738		4.11	%
Commercial loans 1		13,120,479				174,822		5.29	%			12,146,551				144,357		4.72	%
Consumer and other loans		1,263,775				19,478		6.11	%			1,156,305				14,250		4.89	%
Total loans 2		16,034,201				212,894		5.27	%			14,641,462				172,345		4.67	%
Tax-exempt debt securities 3		1,732,227				14,486		3.34	%			2,000,404				18,484		3.70	%
Taxable debt securities 4		8,485,157				41,052		1.94	%			8,426,933				29,297		1.39	%
Total earning assets		26,251,585				268,432		4.06	%			25,068,799				220,126		3.48	%
Goodwill and intangibles		1,020,868										1,030,961
Non-earning assets		528,145										604,754
Total assets	$	27,800,598									$	26,704,514
Liabilities
Non-interest bearing deposits	$	6,461,350			$	—		—	%		$	8,158,207			$	—		—	%
NOW and DDA accounts		5,231,741				12,906		0.98	%			5,473,458				794		0.06	%
Savings accounts		2,840,620				3,492		0.49	%			3,319,167				260		0.03	%
Money market deposit accounts		3,039,177				12,646		1.65	%			3,999,758				1,483		0.15	%
Certificate accounts		2,462,266				23,151		3.73	%			940,507				722		0.30	%
Total core deposits		20,035,154				52,195		1.03	%			21,891,097				3,259		0.06	%
Wholesale deposits 5		188,523				2,502		5.27	%			3,946				20		2.05	%
Repurchase agreements		1,401,765				10,972		3.11	%			917,104				675		0.29	%
FHLB advances		—				—		—	%			541,630				3,318		2.40	%
FRB Bank Term Funding		2,740,000				30,229		4.38	%			—				—		—	%
Subordinated debentures and other borrowed funds		208,336				1,954		3.72	%			202,383				1,803		3.54	%
Total funding liabilities		24,573,778				97,852		1.58	%			23,556,160				9,075		0.15	%
Other liabilities		302,564										261,735
Total liabilities		24,876,342										23,817,895
Stockholders’ Equity
Common stock		1,109										1,108
Paid-in capital		2,347,323										2,341,648
Retained earnings		1,035,276										920,372
Accumulated other comprehensive loss		(459,452	)									(376,509	)
Total stockholders’ equity		2,924,256										2,886,619
Total liabilities and stockholders’ equity	$	27,800,598									$	26,704,514
Net interest income (tax-equivalent)					$	170,580									$	211,051
Net interest spread (tax-equivalent)								2.48	%									3.33	%
Net interest margin (tax-equivalent)								2.58	%									3.34	%

______________________________

¹ Includes tax effect of $1.4 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2023 and 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 $1.9 million and $3.8 million on tax-exempt debt securities income for the three months ended September 30, 2023 and 2022, respectively.
⁴ Includes tax effect of $215 thousand and $225 thousand on federal income tax credits for the three months ended September 30, 2023 and 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)
	Nine Months ended
	September 30, 2023										September 30, 2022
(Dollars in thousands)	Average Balance				Interest & Dividends			Average Yield/ Rate			Average Balance				Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	1,570,911			$	51,508		4.37	%		$	1,236,674			$	42,279		4.56	%
Commercial loans 1		12,910,691				498,152		5.16	%			11,728,932				403,075		4.59	%
Consumer and other loans		1,236,158				54,248		5.87	%			1,113,232				38,552		4.63	%
Total loans 2		15,717,760				603,908		5.14	%			14,078,838				483,906		4.60	%
Tax-exempt debt securities 3		1,745,764				44,978		3.44	%			1,902,147				52,561		3.68	%
Taxable debt securities 4		8,240,041				107,338		1.74	%			8,663,590				84,235		1.30	%
Total earning assets		25,703,565				756,224		3.93	%			24,644,575				620,702		3.37	%
Goodwill and intangibles		1,023,274										1,033,606
Non-earning assets		510,332										659,727
Total assets	$	27,237,171									$	26,337,908
Liabilities
Non-interest bearing deposits	$	6,770,242			$	—		—	%		$	8,004,395			$	—		—	%
NOW and DDA accounts		5,140,668				22,606		0.59	%			5,387,013				2,362		0.06	%
Savings accounts		2,930,420				5,070		0.23	%			3,276,092				836		0.03	%
Money market deposit accounts		3,253,138				28,654		1.18	%			4,009,931				4,233		0.14	%
Certificate accounts		1,638,163				34,613		2.82	%			980,543				2,416		0.33	%
Total core deposits		19,732,631				90,943		0.62	%			21,657,974				9,847		0.06	%
Wholesale deposits 5		213,465				7,999		5.01	%			8,290				37		0.59	%
Repurchase agreements		1,238,139				24,185		2.61	%			936,840				1,435		0.20	%
FHLB advances		738,004				26,910		4.81	%			346,465				4,628		1.76	%
FRB Bank Term Funding		1,929,322				63,160		4.38	%			—				—		—	%
Subordinated debentures and other borrowed funds		208,891				5,737		3.67	%			190,810				4,288		3.00	%
Total funding liabilities		24,060,452				218,934		1.22	%			23,140,379				20,235		0.12	%
Other liabilities		256,022										249,001
Total liabilities		24,316,474										23,389,380
Stockholders’ Equity
Common stock		1,109										1,107
Paid-in capital		2,345,698										2,340,208
Retained earnings		1,017,159										881,208
Accumulated other comprehensive loss		(443,269	)									(273,995	)
Total stockholders’ equity		2,920,697										2,948,528
Total liabilities and stockholders’ equity	$	27,237,171									$	26,337,908
Net interest income (tax-equivalent)					$	537,290									$	600,467
Net interest spread (tax-equivalent)								2.71	%									3.25	%
Net interest margin (tax-equivalent)								2.79	%									3.26	%

______________________________

¹ Includes tax effect of $4.4 million and $4.6 million on tax-exempt municipal loan and lease income for the nine months ended September 30, 2023 and 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 $7.0 million and $10.9 million on tax-exempt debt securities income for the nine months ended September 30, 2023 and 2022, respectively.
⁴ Includes tax effect of $644 thousand and $676 thousand on federal income tax credits for the nine months ended September 30, 2023 and 2022, 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, 2023				Jun 30, 2023				Dec 31, 2022				Sep 30, 2022				Jun 30, 2023			Dec 31, 2022			Sep 30, 2022
Custom and owner occupied construction	$	306,106			$	315,651			$	298,461			$	288,977			(3	)%		3	%		6	%
Pre-sold and spec construction		287,048				306,440				297,895				291,146			(6	)%		(4	)%		(1	)%
Total residential construction		593,154				622,091				596,356				580,123			(5	)%		(1	)%		2	%
Land development		234,995				238,897				219,842				217,878			(2	)%		7	%		8	%
Consumer land or lots		184,685				182,251				206,604				204,241			1	%		(11	)%		(10	)%
Unimproved land		87,089				91,157				104,662				101,684			(4	)%		(17	)%		(14	)%
Developed lots for operative builders		62,485				65,134				60,987				62,800			(4	)%		2	%		(1	)%
Commercial lots		84,194				94,334				93,952				94,395			(11	)%		(10	)%		(11	)%
Other construction		982,384				1,039,192				938,406				893,846			(5	)%		5	%		10	%
Total land, lot, and other construction		1,635,832				1,710,965				1,624,453				1,574,844			(4	)%		1	%		4	%
Owner occupied		2,976,821				2,934,724				2,833,469				2,811,614			1	%		5	%		6	%
Non-owner occupied		3,765,266				3,714,531				3,531,673				3,448,044			1	%		7	%		9	%
Total commercial real estate		6,742,087				6,649,255				6,365,142				6,259,658			1	%		6	%		8	%
Commercial and industrial		1,363,198				1,370,393				1,377,888				1,308,272			(1	)%		(1	)%		4	%
Agriculture		785,208				770,378				735,553				770,282			2	%		7	%		2	%
1st lien		2,054,497				1,956,205				1,808,502				1,738,151			5	%		14	%		18	%
Junior lien		47,490				46,616				40,445				36,677			2	%		17	%		29	%
Total 1-4 family		2,101,987				2,002,821				1,848,947				1,774,828			5	%		14	%		18	%
Multifamily residential		714,822				664,859				622,185				574,366			8	%		15	%		24	%
Home equity lines of credit		950,204				940,048				872,899				841,143			1	%		9	%		13	%
Other consumer		233,980				231,519				220,035				219,036			1	%		6	%		7	%
Total consumer		1,184,184				1,171,567				1,092,934				1,060,179			1	%		8	%		12	%
States and political subdivisions		833,618				812,688				797,656				776,875			3	%		5	%		7	%
Other		209,983				214,951				198,012				193,526			(2	)%		6	%		9	%
Total loans receivable, including loans held for sale		16,164,073				15,989,968				15,259,126				14,872,953			1	%		6	%		9	%
Less loans held for sale 1		(29,027	)			(35,006	)			(12,314	)			(21,720	)		(17	)%		136	%		34	%
Total loans receivable	$	16,135,046			$	15,954,962			$	15,246,812			$	14,851,233			1	%		6	%		9	%

______________________________

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, 2023			Jun 30, 2023		Dec 31, 2022		Sep 30, 2022		Sep 30, 2023		Sep 30, 2023		Sep 30, 2023
Custom and owner occupied construction	$	219		219		224		227		219		—		—
Pre-sold and spec construction		763		1,548		389		1,016		—		763		—
Total residential construction		982		1,767		613		1,243		219		763		—
Land development		80		118		138		149		80		—		—
Consumer land or lots		314		239		278		285		314		—		—
Unimproved land		36		43		78		94		36		—		—
Developed lots for operative builders		608		608		251		255		—		608		—
Commercial lots		188		188		—		—		141		47		—
Other construction		12,884		12,884		12,884		12,884		12,884		—		—
Total land, lot and other construction		14,110		14,080		13,629		13,667		13,455		655		—
Owner occupied		1,445		2,251		2,076		2,687		1,326		119		—
Non-owner occupied		15,105		4,450		805		820		15,105		—		—
Total commercial real estate		16,550		6,701		2,881		3,507		16,431		119		—
Commercial and Industrial		1,367		1,339		3,326		3,453		907		460		—
Agriculture		2,450		2,564		2,574		4,102		2,449		1		—
1st lien		2,766		2,794		2,678		2,149		2,644		107		15
Junior lien		363		273		166		139		147		216		—
Total 1-4 family		3,129		3,067		2,844		2,288		2,791		323		15
Multifamily residential		—		—		4,535		4,635		—		—		—
Home equity lines of credit		1,612		1,256		1,393		1,550		1,402		210		—
Other consumer		942		1,116		911		555		726		183		33
Total consumer		2,554		2,372		2,304		2,105		2,128		393		33
Other		1,141		132		36		59		—		1,141		—
Total	$	42,283		32,022		32,742		35,059		38,380		3,855		48

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, 2023			Jun 30, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2023			Dec 31, 2022			Sep 30, 2022
Custom and owner occupied construction	$	—		$	324		$	1,082		$	427		(100	)%		(100	)%		(100	)%
Pre-sold and spec construction		599			129			1,712			—		364	%		(65	)%		n/m
Total residential construction		599			453			2,794			427		32	%		(79	)%		40	%
Land development		44			244			—			596		(82	)%		n/m			(93	)%
Consumer land or lots		528			565			442			—		(7	)%		19	%		n/m
Unimproved land		87			—			120			36		n/m			(28	)%		142	%
Developed lots for operative builders		—			—			958			30		n/m			(100	)%		(100	)%
Commercial lots		1,245			3,404			47			2,158		(63	)%		2,549	%		(42	)%
Other construction		—			1,114			209			—		(100	)%		(100	)%		n/m
Total land, lot and other construction		1,904			5,327			1,776			2,820		(64	)%		7	%		(32	)%
Owner occupied		652			1,053			3,478			527		(38	)%		(81	)%		24	%
Non-owner occupied		213			8,595			496			—		(98	)%		(57	)%		n/m
Total commercial real estate		865			9,648			3,974			527		(91	)%		(78	)%		64	%
Commercial and industrial		2,946			2,096			3,439			2,087		41	%		(14	)%		41	%
Agriculture		604			871			1,367			641		(31	)%		(56	)%		(6	)%
1st lien		1,006			1,115			2,174			761		(10	)%		(54	)%		32	%
Junior lien		355			385			190			72		(8	)%		87	%		393	%
Total 1-4 family		1,361			1,500			2,364			833		(9	)%		(42	)%		63	%
Multifamily Residential		—			—			492			—		n/m			(100	)%		n/m
Home equity lines of credit		3,638			2,021			1,182			1,004		80	%		208	%		262	%
Other consumer		1,821			1,714			1,824			1,089		6	%		—	%		67	%
Total consumer		5,459			3,735			3,006			2,093		46	%		82	%		161	%
States and political subdivisions		—			—			28			—		n/m			(100	)%		n/m
Other		1,515			1,233			1,727			1,494		23	%		(12	)%		1	%
Total	$	15,253		$	24,863		$	20,967		$	10,922		(39	)%		(27	)%		40	%

______________________________

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, 2023				Jun 30, 2023			Dec 31, 2022			Sep 30, 2022			Sep 30, 2023		Sep 30, 2023
Custom and owner occupied construction	$	—			—			17			17			—		—
Pre-sold and spec construction		(12	)		(8	)		(15	)		(12	)		—		12
Total residential construction		(12	)		(8	)		2			5			—		12
Land development		(134	)		(132	)		(34	)		(24	)		—		134
Consumer land or lots		(14	)		(14	)		(46	)		(46	)		—		14
Unimproved land		—			—			—			—			—		—
Total land, lot and other construction		(148	)		(146	)		(80	)		(70	)		—		148
Owner occupied		(104	)		(76	)		555			229			16		120
Non-owner occupied		500			299			(242	)		(4	)		507		7
Total commercial real estate		396			223			313			225			523		127
Commercial and industrial		(11	)		(18	)		(70	)		395			616		627
Agriculture		—			—			(7	)		(5	)		—		—
1st lien		98			101			(109	)		(99	)		111		13
Junior lien		32			38			(302	)		(303	)		49		17
Total 1-4 family		130			139			(411	)		(402	)		160		30
Multifamily residential		—			—			136			—			—		—
Home equity lines of credit		20			56			(91	)		(98	)		102		82
Other consumer		816			401			451			257			999		183
Total consumer		836			457			360			159			1,101		265
Other		5,430			3,765			7,572			5,540			7,884		2,454
Total	$	6,621			4,412			7,815			5,847			10,284		3,663

Visit our website at www.glacierbancorp.com

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

FAQ

What is the reason for the decrease in net income for the third quarter of 2023?

The decrease in net income is primarily due to increased funding costs outpacing the increase in interest income.

What is the dividend declared by the company?

The Company declared a quarterly dividend of $0.33 per share.

What is the acquisition announced by the company?

The Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., parent company of Wheatland Bank, with total assets of $763 million.