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

Rhea-AI Summary

Glacier Bancorp, Inc. (GBCI) reported a net income of $79.3 million for Q3 2022, a 5% increase from the previous quarter and the same period last year. The loan portfolio grew $457 million or 13% annualized, while core deposits rose $96 million (2% annualized). Net interest margin improved to 3.34%, up from 3.23%. Despite these gains, year-to-date net income of $224 million marked a decline of 5% due to reduced PPP income and gains from loan sales. The company declared a dividend of $0.33 per share, maintaining a history of 150 consecutive dividends.

Positive

• Net income increased by $3.7 million (5%) in Q3 2022 compared to the prior year.
• Loan portfolio growth of $457 million (13% annualized) in Q3 2022.
• Core deposits increased by $96 million (2% annualized) in Q3 2022.
• Improved net interest margin of 3.34% in Q3 2022, up from 3.23% in the previous quarter.
• Declared a quarterly dividend of $0.33, marking 150 consecutive dividends.

Negative

• Year-to-date net income decreased by $10.5 million (5%) compared to the prior year.
• Diluted earnings per share for Q3 2022 decreased by 9% year-over-year to $0.72.
• Significant decrease of $38.3 million in PPP related income year-to-date.
• Decreased gain on sale of residential loans by $33.8 million year-to-date.

3rd Quarter 2022 Highlights:

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

Year-to-date 2022 Highlights:

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

Financial Summary

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

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

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

Asset Summary

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

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

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

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

Credit Quality Summary

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

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

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

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

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

(Dollars in thousands)	Provision for Credit Losses Loans				Net Charge-Offs (Recoveries)				ACL as a Percent of Loans			Accruing Loans 30-89 Days Past Due as a Percent of Loans			Non-Performing Assets to Total Subsidiary Assets
Third quarter 2022	$	8,382			$	3,154			1.20	%		0.07	%		0.13	%
Second quarter 2022		(1,353	)			1,843			1.20	%		0.12	%		0.16	%
First quarter 2022		4,344				850			1.28	%		0.12	%		0.24	%
Fourth quarter 2021		19,301				616			1.29	%		0.38	%		0.26	%
Third quarter 2021		2,313				152			1.36	%		0.23	%		0.24	%
Second quarter 2021		(5,723	)			(725	)		1.35	%		0.11	%		0.26	%
First quarter 2021		489				2,286			1.39	%		0.40	%		0.19	%
Fourth quarter 2020		(1,528	)			4,781			1.42	%		0.20	%		0.19	%

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

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

Liability Summary

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

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

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

Stockholders’ Equity Summary

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

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

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

Cash Dividends
On September 28, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable October 20, 2022 to shareholders of record on October 11, 2022. The dividend was the Company’s 150th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

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

Income Summary

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

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

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

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

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

Non-interest Expense Summary

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

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

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

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

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

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

Income Summary

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

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

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

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

Non-interest Expense Summary

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

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

Provision for Credit Losses

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

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

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

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

• the risks associated with lending and potential adverse changes in the credit quality of loans in the Company’s portfolio;
• changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, overall profitability, and stockholders’ equity;
• legislative or regulatory changes, as well as increased banking and consumer protection regulation, that may adversely affect the Company’s business;
• ability to complete pending or prospective future acquisitions;
• costs or difficulties related to the completion and integration of acquisitions;
• the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
• reduced demand for banking products and services;
• the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
• competition among financial institutions in the Company's markets may increase significantly;
• the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
• the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
• consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
• dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
• material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
• natural disasters, including fires, floods, earthquakes, and other unexpected events;
• the Company’s success in managing risks involved in the foregoing;
• the effects from military action in Ukraine, including the broader impacts to financial markets and economic conditions; and
• the effects of any reputational damage to the Company resulting from any of the foregoing.

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

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, October 21, 2022. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BI5d57c8bb72de4780ad1d8b419b9d998d. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/7o4jqa95. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.

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

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

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

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

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

Glacier Bancorp, Inc.
Average Balance Sheets

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

______________________________

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

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

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

______________________________

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

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

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

______________________________

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

Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification

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

______________________________

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

Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification

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

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

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

______________________________

n/m - not measurable

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

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

Visit our website at www.glacierbancorp.com

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

FAQ

What were Glacier Bancorp's Q3 2022 earnings results?

Glacier Bancorp reported a net income of $79.3 million for Q3 2022, a 5% increase from the prior quarter.

How much did Glacier Bancorp's loan portfolio grow in Q3 2022?

The loan portfolio grew by $457 million, or 13% annualized, in Q3 2022.

What was the net interest margin for GBCI in Q3 2022?

The net interest margin for Q3 2022 was 3.34%, up from 3.23% in the prior quarter.

Did GBCI declare a dividend in Q3 2022?

Yes, Glacier Bancorp declared a quarterly dividend of $0.33 per share.

What was the year-to-date net income for GBCI as of September 30, 2022?

Year-to-date net income for GBCI as of September 30, 2022, was $224 million, down 5% compared to the previous year.