Glacier Bancorp, Inc. Announces Results for the Quarter and Year Ended December 31, 2022

Rhea-AI Summary

Glacier Bancorp, Inc. (GBCI) reported a net income of $79.7 million for Q4 2022, marking a 57% increase compared to Q4 2021's $50.7 million. For the year, net income reached $303 million, a 6% growth from 2021. The loan portfolio, excluding PPP loans, grew by $397 million in Q4 and by $1.974 billion over the year. Interest income rose 5% sequentially and 17% annually, totaling $225 million in Q4. The Company declared a quarterly dividend of $0.33, continuing a streak of 151 consecutive dividends. However, total debt securities decreased by 5% quarterly and 13% yearly.

Positive

• Net income increased by $29 million, or 57%, year-over-year.
• Loan portfolio growth of $397 million, or 11%, annualized in Q4.
• Interest income rose by 17% compared to Q4 2021, totaling $225 million.
• Dividend declared at $0.33 per share with a history of 151 consecutive quarterly dividends.

Negative

• Diluted earnings per share decreased by 4% from the previous year.
• Total debt securities decreased by $489 million, or 5%, quarterly.
• Total non-interest income decreased by 17% compared to Q4 2021.

4th Quarter 2022 Highlights:

• Net income was $79.7 million for the current quarter, an increase of $339 thousand, or 43 basis points, from the prior quarter net income of $79.3 million. Net income for the current quarter increased $29.0 million, or 57 percent, over the prior year fourth quarter net income of $50.7 million.
• The loan portfolio, excluding the Paycheck Protection Program (“PPP”) loans, grew $397 million, or 11 percent annualized, in the current quarter.
• The loan yield for the current quarter of 4.83 percent, increased 16 basis points, compared to 4.67 percent in the prior quarter and increased 13 basis points from the prior year fourth quarter loan yield of 4.70 percent.
• Interest income of $225 million in the current quarter increased $10.7 million, or 5 percent, over the prior quarter interest income of $214 million. Interest income in the current quarter increased $32.3 million, or 17 percent, over the prior year fourth quarter.
• Non-interest expense of $129.0 million, decreased $1.1 million, or 1 percent, over prior quarter, and decreased $5.1 million, or 4 percent over the prior year fourth quarter.
• Non-performing assets as a percentage of subsidiary assets was 0.12 percent in the current quarter compared to 0.13 percent in the prior quarter and 0.26 percent in the prior year fourth quarter.
• The Company declared a quarterly dividend of $0.33 per share. The Company has declared 151 consecutive quarterly dividends and has increased the dividend 49 times.
  

Year 2022 Highlights:

• Record net income of $303 million for 2022 increased $18.4 million, or 6 percent, compared to the prior year net income.
• The loan portfolio, excluding the PPP loans, grew $1.974 billion, or 15 percent annualized, in 2022.
• Interest income of $830 million in the current year increased $149 million, or 22 percent, over the prior year interest income of $681 million.
• Declared regular total dividends in 2022 of $1.32 per share, an increase of $0.05 per share, or 4 percent, over the prior year regular dividends of $1.27.

Financial Summary  

	At or for the Three Months ended																At or for the Year ended
(Dollars in thousands, except per share and market data)	Dec 31, 2022				Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Dec 31, 2022			Dec 31, 2021
Operating results
Net income	$	79,677			79,338			76,392			67,795			50,709			303,202			284,757
Basic earnings per share	$	0.72			0.72			0.69			0.61			0.46			2.74			2.87
Diluted earnings per share	$	0.72			0.72			0.69			0.61			0.46			2.74			2.86
Dividends declared per share1	$	0.33			0.33			0.33			0.33			0.42			1.32			1.37
Market value per share
Closing	$	49.42			49.13			47.42			50.28			56.70			49.42			56.70
High	$	59.70			56.10			51.40			60.69			60.54			60.69			67.35
Low	$	48.64			46.08			44.43			49.61			52.62			44.43			44.55
Selected ratios and other data
Number of common stock shares outstanding		110,777,780			110,766,954			110,766,287			110,763,316			110,687,533			110,777,780			110,687,533
Average outstanding shares - basic		110,773,084			110,766,502			110,765,379			110,724,655			110,687,365			110,757,473			99,313,255
Average outstanding shares - diluted		110,872,127			110,833,594			110,794,982			110,800,001			110,789,632			110,827,933			99,398,250
Return on average assets (annualized)		1.19%			1.18%			1.16%			1.06%			0.78%			1.15%			1.33%
Return on average equity (annualized)		11.35%			10.94%			10.55%			8.97%			6.28%			10.43%			11.08%
Efficiency ratio		53.18%			52.76%			55.74%			57.11%			57.68%			54.64%			51.35%
Dividend payout2		45.83%			45.83%			47.83%			54.10%			91.30%			48.18%			47.74%
Loan to deposit ratio		74.05%			67.98%			66.26%			63.52%			63.24%			74.05%			63.24%
Number of full time equivalent employees		3,390			3,396			3,439			3,439			3,436			3,390			3,436
Number of locations		221			222			224			223			224			221			224
Number of ATMs		265			272			274			273			273			265			273

______________________
¹ Includes a special dividend declared of $0.10 per share for the three and twelve months ended December 31, 2021.
² Excluding the special dividend, the dividend payout ratio was 69.57 percent for the three months ended December 31, 2021 and 44.25 percent for the twelve months ended December 31, 2021.

KALISPELL, Mont., Jan. 26, 2023 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $79.7 million for the current quarter, an increase of $29.0 million, or 57 percent, from the $50.7 million of net income for the prior year fourth quarter. Diluted earnings per share for the current quarter was $0.72 per share, an increase of 57 percent from the prior year fourth quarter diluted earnings per share of $0.46. The $29.0 million net income increase over the prior year fourth quarter was driven by a $24.2 million increase in interest income on loans and a $21.8 million decrease in credit loss expense driven by the prior year credit loss expense from the acquisition of Altabancorp and its Altabank subsidiary (“Alta”) on October 1, 2021. Included in the current quarter non-interest expense was a $2.5 million gain on the sale of former branch buildings. “We were pleased to see healthy loan growth, continued strong credit, increasing loan yields and well managed expenses,” said Randy Chesler, President and Chief Executive Officer. “The Glacier team had many important accomplishments in 2022 and is ready and well positioned for 2023.”

Net income for 2022 was $303 million, an increase of $18.4 million, or 6 percent, from the $285 million net income for the prior year. Diluted earnings per share for 2022 was $2.74 per share, a decrease of 4 percent from the prior year earnings per share of $2.86. The $18.4 million increase in net income over the prior year was driven by a $125.9 million increase in net interest income from both organic loan growth and the acquisition of Alta which more than offset the $43.0 million decrease in gain on sale of loans, a $40.0 million decrease in PPP related income, and an $84.0 million increase in non-interest expense from the acquisition of Alta and increased operating expenses.

Asset Summary

											$ Change from
(Dollars in thousands)	Dec 31, 2022				Sep 30, 2022			Dec 31, 2021			Sep 30, 2022			Dec 31, 2021
Cash and cash equivalents	$	401,995			425,212			437,686			(23,217	)		(35,691	)
Debt securities, available-for-sale		5,307,307			5,755,076			9,170,849			(447,769	)		(3,863,542	)
Debt securities, held-to-maturity		3,715,052			3,756,634			1,199,164			(41,582	)		2,515,888
Total debt securities		9,022,359			9,511,710			10,370,013			(489,351	)		(1,347,654	)
Loans receivable
Residential real estate		1,446,008			1,368,368			1,051,883			77,640			394,125
Commercial real estate		9,797,047			9,582,989			8,630,831			214,058			1,166,216
Other commercial		2,799,668			2,729,717			2,664,190			69,951			135,478
Home equity		822,232			793,556			736,288			28,676			85,944
Other consumer		381,857			376,603			348,839			5,254			33,018
Loans receivable		15,246,812			14,851,233			13,432,031			395,579			1,814,781
Allowance for credit losses		(182,283	)		(178,191	)		(172,665	)		(4,092	)		(9,618	)
Loans receivable, net		15,064,529			14,673,042			13,259,366			391,487			1,805,163
Other assets		2,146,492			2,122,990			1,873,580			23,502			272,912
Total assets	$	26,635,375			26,732,954			25,940,645			(97,579	)		694,730

Total debt securities of $9.022 billion at December 31, 2022 decreased $489 million, or 5 percent, during the current quarter and decreased $1.348 billion, or 13 percent, from the prior year end. The Company continues to selectively sell debt securities to fund organic loan growth and the reduction in deposits. Debt securities represented 34 percent of total assets at December 31, 2022 compared to 40 percent at December 31, 2021.

Excluding the PPP loans, during the current quarter the loan portfolio increased $397 million, or 11 percent annualized, with the largest dollar increase in commercial real estate which increased $214 million, or 9 percent annualized. Excluding the PPP loans, the loan portfolio increased $1.974 billion, or 15 percent, from the prior year fourth quarter with the largest dollar increase in commercial real estate loans which increased $1.166 billion, or 14 percent.

Credit Quality Summary

	At or for the Year ended				At or for the Nine Months ended			At or for the Year ended
(Dollars in thousands)	Dec 31, 2022				Sep 30, 2022			Dec 31, 2021
Allowance for credit losses
Balance at beginning of period	$	172,665			172,665			158,243
Acquisitions		—			—			371
Provision for credit losses		17,433			11,373			16,380
Charge-offs		(14,970	)		(10,905	)		(11,594	)
Recoveries		7,155			5,058			9,265
Balance at end of period	$	182,283			178,191			172,665
Provision for credit losses
Loan portfolio	$	17,433			11,373			16,380
Unfunded loan commitments		2,530			2,466			6,696
Total provision for credit losses	$	19,963			13,839			23,076
Other real estate owned	$	—			—			—
Other foreclosed assets		32			42			18
Accruing loans 90 days or more past due		1,559			2,524			17,141
Non-accrual loans		31,151			32,493			50,532
Total non-performing assets	$	32,742			35,059			67,691
Non-performing assets as a percentage of subsidiary assets		0.12	%		0.13	%		0.26	%
Allowance for credit losses as a percentage of non-performing loans		557	%		508	%		255	%
Allowance for credit losses as a percentage of total loans		1.20	%		1.20	%		1.29	%
Net charge-offs as a percentage of total loans		0.05	%		0.04	%		0.02	%
Accruing loans 30-89 days past due	$	20,967			10,922			50,566
Accruing troubled debt restructurings	$	35,220			37,608			34,591
Non-accrual troubled debt restructurings	$	2,355			2,355			2,627
U.S. government guarantees included in non-performing assets	$	2,312			4,930			4,028

Non-performing assets of $32.7 million at December 31, 2022 decreased $2.3 million, or 7 percent, over the prior quarter and decreased $34.9 million, or 52 percent, over prior year fourth quarter. Non-performing assets as a percentage of subsidiary assets at December 31, 2022 was 0.12 percent compared to 0.13 percent in the prior quarter and 0.26 percent in the prior year fourth quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $21.0 million at December 31, 2022 increased $10.0 million from the prior quarter and decreased $29.6 million from the prior year fourth quarter. Early stage delinquencies as a percentage of loans at December 31, 2022 was 14 basis points, which compared to 7 basis points in the prior quarter and 38 basis points from prior year fourth quarter.

The current quarter credit loss expense of $6.1 million included $6.1 million of credit loss expense from loans and $65 thousand of credit loss expense from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at December 31, 2022 was 1.20 percent which was the same compared to the prior quarter and a 9 basis points decrease from the prior year end.

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
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	%
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	%

Net charge-offs for the current quarter of $2.0 million compared to $3.2 million for the prior quarter and $616 thousand from the same quarter last year. Net charge-offs of $2.0 million included $2.1 million in deposit overdraft net charge-offs and $91 thousand of net loan recoveries.

The current quarter provision for credit loss expense for loans was $6.1 million which was a decrease of $2.3 million from the prior quarter. The prior year fourth quarter credit loss expense of $19.3 million on the loan portfolio included $18.1 million of provision for credit loss from the acquisition of Alta to fully fund an allowance for credit losses post-acquisition. Excluding the impact from the acquisition of Alta, the current quarter provision for credit loss expense for loans increased $4.8 million from the prior year fourth 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)	Dec 31, 2022			Sep 30, 2022		Dec 31, 2021		Sep 30, 2022			Dec 31, 2021
Deposits
Non-interest bearing deposits	$	7,690,751		8,294,363		7,779,288		(603,612	)		(88,537	)
NOW and DDA accounts		5,330,614		5,462,707		5,301,832		(132,093	)		28,782
Savings accounts		3,200,321		3,305,333		3,180,046		(105,012	)		20,275
Money market deposit accounts		3,472,281		3,905,676		4,014,128		(433,395	)		(541,847	)
Certificate accounts		880,589		907,560		1,036,077		(26,971	)		(155,488	)
Core deposits, total		20,574,556		21,875,639		21,311,371		(1,301,083	)		(736,815	)
Wholesale deposits		31,999		4,003		25,878		27,996			6,121
Deposits, total		20,606,555		21,879,642		21,337,249		(1,273,087	)		(730,694	)
Repurchase agreements		945,916		887,483		1,020,794		58,433			(74,878	)
Federal Home Loan Bank advances		1,800,000		705,000		—		1,095,000			1,800,000
Other borrowed funds		77,293		77,671		44,094		(378	)		33,199
Subordinated debentures		132,782		132,742		132,620		40			162
Other liabilities		229,524		278,059		228,266		(48,535	)		1,258
Total liabilities	$	23,792,070		23,960,597		22,763,023		(168,527	)		1,029,047

Core deposits of $20.575 billion decreased $1.301 billion, or 6 percent, during the current quarter and decreased $737 million, or 3 percent, from the prior year end. Non-interest bearing deposits were 37 percent of total core deposits at December 31, 2022 and December 31, 2021.

Federal Home Loan Bank (“FHLB”) advances increased $1.095 billion during the current quarter and $1.800 billion during 2022 to support liquidity needs from organic loan growth and the decrease in deposits.

Stockholders’ Equity Summary

											$ Change from
(Dollars in thousands, except per share data)	Dec 31, 2022				Sep 30, 2022			Dec 31, 2021			Sep 30, 2022		Dec 31, 2021
Common equity	$	3,312,097			3,267,505			3,150,263			44,592		161,834
Accumulated other comprehensive (loss) income		(468,792	)		(495,148	)		27,359			26,356		(496,151	)
Total stockholders’ equity		2,843,305			2,772,357			3,177,622			70,948		(334,317	)
Goodwill and core deposit intangible, net		(1,026,994	)		(1,029,658	)		(1,037,652	)		2,664		10,658
Tangible stockholders’ equity	$	1,816,311			1,742,699			2,139,970			73,612		(323,659	)

Stockholders’ equity to total assets		10.67	%		10.37	%		12.25	%
Tangible stockholders’ equity to total tangible assets		7.09	%		6.78	%		8.59	%
Book value per common share	$	25.67			25.03			28.71			0.64		(3.04	)
Tangible book value per common share	$	16.40			15.73			19.33			0.67		(2.93	)

Tangible stockholders’ equity of $1.816 billion at December 31, 2022 increased $73.6 million, or 4 percent, from the prior quarter which was primarily driven by earnings retention and the decrease in the unrealized loss on the available-for-sale (“AFS”) debt securities during the current quarter. Tangible stockholders’ equity decreased by $324 million from the prior year as a result of an increase in unrealized loss on the AFS debt securities which resulted from the significant increase in interest rates during the current year. Tangible book value per common share of $16.40 at the current quarter end increased $0.67 per share, or 4 percent, from the prior quarter. The tangible book value per common share decreased $2.93 per share, or 15 percent, from the prior year fourth quarter primarily as a result of the increase in the unrealized loss on AFS debt securities.

Cash Dividends
On November 16, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable December 15, 2022 to shareholders of record on December 6, 2022. The dividend was the Company’s 151st 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 December 31, 2022 
Compared to September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021

Income Summary

	Three Months ended
(Dollars in thousands)	Dec 31, 2022				Sep 30, 2022				Jun 30, 2022			Mar 31, 2022			Dec 31, 2021
Net interest income
Interest income	$	225,085				214,402			199,637			190,516			192,825
Interest expense		21,026				9,075			6,199			4,961			5,203
Total net interest income		204,059				205,327			193,438			185,555			187,622
Non-interest income
Service charges and other fees		18,734				18,970			17,309			17,111			17,576
Miscellaneous loan fees and charges		3,905				4,040			3,850			3,555			3,745
Gain on sale of loans		2,175				3,846			4,996			9,015			11,431
Gain (loss) on sale of investments		519				(85	)		(260	)		446			(693	)
Other income		3,150				3,635			2,385			3,436			2,303
Total non-interest income		28,483				30,406			28,280			33,563			34,362
Total income		232,542				235,733			221,718			219,118			221,984
Net interest margin (tax-equivalent)		3.30	%			3.34	%		3.23	%		3.20	%		3.21	%
					$ Change from
(Dollars in thousands)					Sep 30, 2022				Jun 30, 2022			Mar 31, 2022			Dec 31, 2021
Net interest income
Interest income					$	10,683			25,448			34,569			32,260
Interest expense						11,951			14,827			16,065			15,823
Total net interest income						(1,268	)		10,621			18,504			16,437
Non-interest income
Service charges and other fees						(236	)		1,425			1,623			1,158
Miscellaneous loan fees and charges						(135	)		55			350			160
Gain on sale of loans						(1,671	)		(2,821	)		(6,840	)		(9,256	)
Gain (loss) on sale of investments						604			779			73			1,212
Other income						(485	)		765			(286	)		847
Total non-interest income						(1,923	)		203			(5,080	)		(5,879	)
Total income					$	(3,191	)		10,824			13,424			10,558

Net Interest Income
The current quarter net interest income of $204 million decreased $1.3 million, or 1 percent, compared to the prior quarter and increased $16.4 million, or 9 percent, from the prior year fourth quarter. The current quarter interest income of $225 million increased $10.7 million, or 5 percent, over the prior quarter and was driven primarily by the increase in the loan portfolio and an increase in loan yields. The current quarter interest income increased $32.3 million, or 17 percent, over the prior year fourth quarter due to organic loan growth and increased loan yields, which more than offset the $8.5 million decrease in interest income from the PPP loans.

The current quarter interest expense of $21.0 million increased $12.0 million, or 132 percent, over the prior quarter and increased $15.8 million, or 304 percent, over the prior year fourth quarter primarily the result of an increase in borrowings to fund the Company’s loan growth and reduction in deposits. Core deposit cost (including non-interest bearing deposits) was 8 basis points for the current quarter compared to 6 basis points in the prior quarter and 7 basis points for the prior year fourth quarter. The total cost of funding (including non-interest bearing deposits) was 35 basis points in the current quarter compared to 15 basis points in the prior quarter and 9 basis points in the prior year fourth quarter which was the result of 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 3.30 percent compared to 3.34 percent in the prior quarter and 3.21 percent in the prior year fourth quarter. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 3.27 percent compared to 3.29 percent in the prior quarter and 3.04 percent in the prior year fourth quarter. The core net interest margin decreased 2 basis points in the current quarter as a result of increased borrowing costs. The core loan yield of 4.79 percent in the current quarter increased 19 basis points from the prior quarter core loan yield of 4.60 percent and increased 36 basis points from the prior year fourth quarter core loan yield of 4.43 percent. “The Bank divisions have been excellent in pricing loans at higher yields as interest rates have increased,” said Ron Copher, Chief Financial Officer.

Non-interest Income
Non-interest income for the current quarter totaled $28.5 million which was a decrease of $1.9 million, or 6 percent, over the prior quarter and a decrease of $5.9 million, or 17 percent, over the same quarter last year which was primarily driven by the decrease in gain on sale of residential loans. Gain on the sale of residential loans of $2.2 million for the current quarter decreased $1.7 million, or 43 percent, compared to the prior quarter and decreased $9.3 million, or 81 percent, from the prior year fourth 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
(Dollars in thousands)	Dec 31, 2022			Sep 30, 2022				Jun 30, 2022			Mar 31, 2022			Dec 31, 2021
Compensation and employee benefits	$	79,814			80,612			79,803			79,074			77,703
Occupancy and equipment		10,734			10,797			10,766			10,964			11,259
Advertising and promotions		3,558			3,768			3,766			3,232			3,436
Data processing		8,079			7,716			7,553			7,475			7,468
Other real estate owned and foreclosed assets		5			66			6			—			34
Regulatory assessments and insurance		3,425			3,339			3,085			3,055			2,657
Core deposit intangibles amortization		2,664			2,665			2,665			2,664			2,807
Other expenses		20,700			21,097			21,877			23,844			28,683
Total non-interest expense	$	128,979			130,060			129,521			130,308			134,047
				$ Change from
(Dollars in thousands)				Sep 30, 2022				Jun 30, 2022			Mar 31, 2022			Dec 31, 2021
Compensation and employee benefits				$	(798	)		11			740			2,111
Occupancy and equipment					(63	)		(32	)		(230	)		(525	)
Advertising and promotions					(210	)		(208	)		326			122
Data processing					363			526			604			611
Other real estate owned and foreclosed assets					(61	)		(1	)		5			(29	)
Regulatory assessments and insurance					86			340			370			768
Core deposit intangibles amortization					(1	)		(1	)		—			(143	)
Other expenses					(397	)		(1,177	)		(3,144	)		(7,983	)
Total non-interest expense				$	(1,081	)		(542	)		(1,329	)		(5,068	)

Total non-interest expense of $129 million for the current quarter decreased $1.1 million, or 1 percent, over the prior quarter. Excluding a current quarter $2.5 million gain on the sale of former branch buildings included in other expenses, total non-interest expense was $131 million for the current quarter which increased $1.1 million or 1 percent, over the prior quarter which was driven by several miscellaneous category increases.

Total non-interest expense for the current quarter decreased $5.1 million, or 4 percent over the prior year fourth quarter. Compensation and employee benefit expense of $79.8 million increased $2.1 million, or 3 percent, over the prior year fourth quarter primarily from annual salary increases and benefit adjustments which more than offset the decrease in commission expense resulting from the slowing of mortgage loan sales. Other expense of $20.7 million for the current quarter decreased $8.0 million or 28 percent from the prior year fourth quarter and was the result of the decrease in acquisition-related expenses and the current quarter gain on the sale of the former branch buildings. Acquisition-related expenses was $804 thousand in the current quarter compared to $892 thousand in the prior quarter and $8.2 million in the prior year fourth quarter.

Federal and State Income Tax Expense
Tax expense during the fourth quarter of 2022 was $17.8 million, a decrease of $232 thousand, or 1 percent, compared to the prior quarter and an increase of $8.5 million, or 92 percent, from the prior year fourth quarter. The effective tax rate in the current quarter was 18.2 percent compared to 18.5 percent in the prior quarter and 15.5 percent in the prior year fourth quarter.

Efficiency Ratio
The efficiency ratio was 53.18 percent in the current quarter compared to 52.76 percent in the prior quarter and 57.68 percent in the prior year fourth quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 52.84 percent in the current quarter compared to 52.39 percent in the prior quarter and 54.09 percent in the prior year fourth quarter.

Operating Results for Year Ended December 31, 2022
Compared to December 31, 2021

Income Summary

	Year ended
(Dollars in thousands)	Dec 31, 2022				Dec 31, 2021				$ Change				% Change
Net interest income
Interest income	$	829,640			$	681,074			$	148,566			22 %
Interest expense		41,261				18,558				22,703			122 %
Total net interest income		788,379				662,516				125,863			19 %
Non-interest income
Service charges and other fees		72,124				59,317				12,807			22 %
Miscellaneous loan fees and charges		15,350				12,038				3,312			28 %
Gain on sale of loans		20,032				63,063				(43,031	)		(68) %
Gain on sale of investments		620				(638	)			1,258			(197) %
Other income		12,606				11,040				1,566			14 %
Total non-interest income		120,732				144,820				(24,088	)		(17) %
Total Income	$	909,111			$	807,336			$	101,775			13 %
Net interest margin (tax-equivalent)		3.27	%			3.42	%

Net Interest Income
Net-interest income of $788 million for 2022 increased $126 million, or 19 percent, over 2021. Interest income of $830 million for the current year increased $149 million, or 22 percent, from the prior year and was primarily attributable to the acquisition of Alta and organic loan growth.

Interest expense of $41.3 million for 2022 increased $22.7 million, or 122 percent over the prior year and was the result of increased borrowings and higher interest rates. Core deposit cost (including non-interest bearing deposits) was 7 basis points for both 2022 and 2021. The total funding cost (including non-interest bearing deposits) for 2022 was 18 basis points, which increased 8 basis points compared to 10 basis points in 2021 driven by the increased borrowing rates.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 2022 was 3.27 percent, a 15 basis points decrease from the net interest margin of 3.42 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 3.20 percent which was a 4 basis point decrease from the core margin of 3.24 percent in the prior year.

Non-interest Income
Non-interest income of $120.7 million for 2022 decreased $24.1 million, or 17 percent, over the same period last year and was principally due to the $43.0 million, or 68 percent, decrease in gain on sale of residential loans. Service charges and other fees of $72.1 million for 2022 increased $12.8 million, or 22 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 $3.3 million, or 28 percent, primarily driven by increases in credit card interchange fees due to increased activity and the acquisition of Alta.

Non-interest Expense Summary

	Year ended
(Dollars in thousands)	Dec 31, 2022			Dec 31, 2021			$ Change				% Change
Compensation and employee benefits	$	319,303		$	270,644		$	48,659			18 %
Occupancy and equipment		43,261			39,394			3,867			10 %
Advertising and promotions		14,324			11,949			2,375			20 %
Data processing		30,823			23,470			7,353			31 %
Other real estate owned and foreclosed assets		77			236			(159	)		(67)%
Regulatory assessments and insurance		12,904			8,249			4,655			56 %
Core deposit intangibles amortization		10,658			10,271			387			4 %
Other expenses		87,518			70,609			16,909			24 %
Total non-interest expense	$	518,868		$	434,822		$	84,046			19 %

Total non-interest expense of $519 million for 2022 increased $84.0 million, or 19 percent, over the prior year and was primarily driven by the increased costs from the acquisition of Alta. Total non-interest expense for Altabank division in 2022 was $75.5 million, an increase of $56.7 million over prior year non-interest expense of $18.9 million as a result of the acquisition occurring in the fourth quarter of 2021. Excluding the increase from the Altabank division, compensation and employee benefits increased $22.0 million, or 8 percent, over the prior year which was driven by annual salary increases and a reduction in deferred compensation from loan originations which more than offset the decrease in commission expense resulting from the slowing of mortgage loan sales. Data processing expense of $30.8 million for 2022, increased $7.4 million, or 31 percent, and was driven by increases from the Altabank division and expenses associated with technology infrastructure improvements. Other expenses of $87.5 million for 2022, increased $16.9 million, or 24 percent, from the prior year which was driven by increased costs from the Altabank division, general operating cost increases, and outside services associated with technology infrastructure improvements. Acquisition-related expenses were $10.0 million in the current year compared to $9.8 million in the prior year.

Provision for Credit Losses

The provision for credit loss expense was $19.9 million for 2022, including provision for credit loss expense of $17.4 million on the loan portfolio and credit loss expense of $2.5 million on unfunded loan commitments. The prior year credit loss expense of $16.4 million on the loan portfolio included $18.1 million of provision for credit loss from the acquisition of Alta to fully fund an allowance for credit losses post-acquisition. Excluding the impact from the acquisition of Alta, the provision for credit loss expense of $17.4 million on the loan portfolio in the current year increased $19.1 million over the prior year which was primarily attributable to organic loan growth during the current year. Net charge-offs during the current year were $7.8 million compared to $2.3 million during the prior year.

Federal and State Income Tax Expense
Tax expense of $67.1 for 2022 increased $2.4 million, or 4 percent, over the prior year. The effective tax rate for 2022 was 18.1 percent compared to 18.5 percent in the prior year.

Efficiency Ratio
The efficiency ratio was 54.64 percent for 2022 compared to 51.35 percent for last year. Excluding the impact from the PPP loans and acquisition related expenses, the efficiency ratio was 53.88 in 2022 compared to 53.07 in 2021.

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, January 27, 2023. 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/BIc0df24de0cb44359909dc4a7bbc51bb5. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/2jvw627b. 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)	Dec 31, 2022				Sep 30, 2022			Dec 31, 2021
Assets
Cash on hand and in banks	$	300,194			260,456			198,087
Interest bearing cash deposits		101,801			164,756			239,599
Cash and cash equivalents		401,995			425,212			437,686
Debt securities, available-for-sale		5,307,307			5,755,076			9,170,849
Debt securities, held-to-maturity		3,715,052			3,756,634			1,199,164
Total debt securities		9,022,359			9,511,710			10,370,013
Loans held for sale, at fair value		12,314			21,720			60,797
Loans receivable		15,246,812			14,851,233			13,432,031
Allowance for credit losses		(182,283	)		(178,191	)		(172,665	)
Loans receivable, net		15,064,529			14,673,042			13,259,366
Premises and equipment, net		398,100			395,639			372,597
Other real estate owned and foreclosed assets		32			42			18
Accrued interest receivable		83,538			93,300			76,673
Deferred tax asset		193,187			204,351			27,693
Core deposit intangible, net		41,601			44,265			52,259
Goodwill		985,393			985,393			985,393
Non-marketable equity securities		82,015			38,215			10,020
Bank-owned life insurance		169,068			168,187			167,671
Other assets		181,244			171,878			120,459
Total assets	$	26,635,375			26,732,954			25,940,645
Liabilities
Non-interest bearing deposits	$	7,690,751			8,294,363			7,779,288
Interest bearing deposits		12,915,804			13,585,279			13,557,961
Securities sold under agreements to repurchase		945,916			887,483			1,020,794
FHLB advances		1,800,000			705,000			—
Other borrowed funds		77,293			77,671			44,094
Subordinated debentures		132,782			132,742			132,620
Accrued interest payable		4,331			2,740			2,409
Other liabilities		225,193			275,319			225,857
Total liabilities		23,792,070			23,960,597			22,763,023
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 December 31, 2022, and December 31, 2021, respectively		1,108			1,108			1,107
Paid-in capital		2,344,005			2,342,452			2,338,814
Retained earnings - substantially restricted		966,984			923,945			810,342
Accumulated other comprehensive (loss) income		(468,792	)		(495,148	)		27,359
Total stockholders’ equity		2,843,305			2,772,357			3,177,622
Total liabilities and stockholders’ equity	$	26,635,375			26,732,954			25,940,645

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

	Three Months ended									Year ended
(Dollars in thousands, except per share data)	Dec 31, 2022			Sep 30, 2022			Dec 31, 2021			Dec 31, 2022		Dec 31, 2021
Interest Income
Investment securities	$	43,818		43,722			35,711			169,035		122,099
Residential real estate loans		14,964		13,738			13,728			57,243		43,300
Commercial loans		150,462		142,692			131,158			548,969		471,061
Consumer and other loans		15,841		14,250			12,228			54,393		44,614
Total interest income		225,085		214,402			192,825			829,640		681,074
Interest Expense
Deposits		4,642		3,279			3,708			14,526		12,135
Securities sold under agreements to   repurchase		1,765		675			467			3,200		2,303
Federal Home Loan Bank advances		12,689		3,318			—			17,317		—
Other borrowed funds		464		380			184			1,329		713
Subordinated debentures		1,466		1,423			844			4,889		3,407
Total interest expense		21,026		9,075			5,203			41,261		18,558
Net Interest Income		204,059		205,327			187,622			788,379		662,516
Provision for credit losses		6,124		8,341			27,956			19,963		23,076
Net interest income after provision for credit losses		197,935		196,986			159,666			768,416		639,440
Non-Interest Income
Service charges and other fees		18,734		18,970			17,576			72,124		59,317
Miscellaneous loan fees and charges		3,905		4,040			3,745			15,350		12,038
Gain on sale of loans		2,175		3,846			11,431			20,032		63,063
Gain (loss) on sale of debt securities		519		(85	)		(693	)		620		(638	)
Other income		3,150		3,635			2,303			12,606		11,040
Total non-interest income		28,483		30,406			34,362			120,732		144,820
Non-Interest Expense
Compensation and employee benefits		79,814		80,612			77,703			319,303		270,644
Occupancy and equipment		10,734		10,797			11,259			43,261		39,394
Advertising and promotions		3,558		3,768			3,436			14,324		11,949
Data processing		8,079		7,716			7,468			30,823		23,470
Other real estate owned and foreclosed   assets		5		66			34			77		236
Regulatory assessments and insurance		3,425		3,339			2,657			12,904		8,249
Core deposit intangibles amortization		2,664		2,665			2,807			10,658		10,271
Other expenses		20,700		21,097			28,683			87,518		70,609
Total non-interest expense		128,979		130,060			134,047			518,868		434,822
Income Before Income Taxes		97,439		97,332			59,981			370,280		349,438
Federal and state income tax expense		17,762		17,994			9,272			67,078		64,681
Net Income	$	79,677		79,338			50,709			303,202		284,757

Glacier Bancorp, Inc.
Average Balance Sheets

	Three Months ended
	December 31, 2022										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	$	1,424,550			$	14,964		4.20	%		$	1,338,606			$	13,738		4.11	%
Commercial loans 1		12,419,414				152,169		4.86	%			12,146,551				144,357		4.72	%
Consumer and other loans		1,183,727				15,841		5.31	%			1,156,305				14,250		4.89	%
Total loans 2		15,027,691				182,974		4.83	%			14,641,462				172,345		4.67	%
Tax-exempt debt securities 3		1,960,007				17,877		3.65	%			2,000,404				18,484		3.70	%
Taxable debt securities 4		8,200,203				29,717		1.45	%			8,426,933				29,297		1.39	%
Total earning assets		25,187,901				230,568		3.63	%			25,068,799				220,126		3.48	%
Goodwill and intangibles		1,028,277										1,030,961
Non-earning assets		436,260										604,754
Total assets	$	26,652,438									$	26,704,514
Liabilities
Non-interest bearing deposits	$	8,010,053			$	—		—	%		$	8,158,207			$	—		—	%
NOW and DDA accounts		5,388,062				1,077		0.08	%			5,473,458				794		0.06	%
Savings accounts		3,255,091				355		0.04	%			3,319,167				260		0.03	%
Money market deposit accounts		3,679,866				2,168		0.23	%			3,999,758				1,483		0.15	%
Certificate accounts		882,490				834		0.37	%			940,507				722		0.30	%
Total core deposits		21,215,562				4,434		0.08	%			21,891,097				3,259		0.06	%
Wholesale deposits 5		22,462				208		3.69	%			3,946				20		2.05	%
Repurchase agreements		873,819				1,765		0.80	%			917,104				675		0.29	%
FHLB advances		1,291,087				12,689		3.85	%			541,630				3,318		2.40	%
Subordinated debentures and other borrowed funds		211,953				1,930		3.61	%			202,383				1,803		3.54	%
Total funding liabilities		23,614,883				21,026		0.35	%			23,556,160				9,075		0.15	%
Other liabilities		252,298										261,735
Total liabilities		23,867,181										23,817,895
Stockholders’ Equity
Common stock		1,108										1,108
Paid-in capital		2,343,157										2,341,648
Retained earnings		946,195										920,372
Accumulated other comprehensive (loss) income		(505,203	)									(376,509	)
Total stockholders’ equity		2,785,257										2,886,619
Total liabilities and stockholders’ equity	$	26,652,438									$	26,704,514
Net interest income (tax-equivalent)					$	209,542									$	211,051
Net interest spread (tax-equivalent)								3.28	%									3.33	%
Net interest margin (tax-equivalent)								3.30	%									3.34	%

______________________________

¹ Includes tax effect of $1.7 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2022 and September 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 $3.6 million and $3.8 million on tax-exempt debt securities income for the three months ended December 31, 2022 and September 30, 2022, respectively.
⁴ Includes tax effect of $225 thousand and $225 thousand on federal income tax credits for the three months ended December 31, 2022 and September 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
	December 31, 2022										December 31, 2021
(Dollars in thousands)	Average Balance				Interest & Dividends			Average Yield/ Rate			Average Balance			Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	1,424,550			$	14,964		4.20	%		$	1,104,232		$	13,728		4.97	%
Commercial loans 1		12,419,414				152,169		4.86	%			11,184,129			132,561		4.70	%
Consumer and other loans		1,183,727				15,841		5.31	%			1,082,341			12,228		4.48	%
Total loans 2		15,027,691				182,974		4.83	%			13,370,702			158,517		4.70	%
Tax-exempt debt securities 3		1,960,007				17,877		3.65	%			1,693,761			15,552		3.67	%
Taxable debt securities 4		8,200,203				29,717		1.45	%			8,709,938			23,555		1.08	%
Total earning assets		25,187,901				230,568		3.63	%			23,774,401			197,624		3.30	%
Goodwill and intangibles		1,028,277										1,031,002
Non-earning assets		436,260										950,923
Total assets	$	26,652,438									$	25,756,326
Liabilities
Non-interest bearing deposits	$	8,010,053			$	—		—	%		$	7,955,888		$	—		—	%
NOW and DDA accounts		5,388,062				1,077		0.08	%			5,120,484			970		0.08	%
Savings accounts		3,255,091				355		0.04	%			3,133,654			346		0.04	%
Money market deposit accounts		3,679,866				2,168		0.23	%			3,883,818			1,374		0.14	%
Certificate accounts		882,490				834		0.37	%			1,051,787			1,004		0.38	%
Total core deposits		21,215,562				4,434		0.08	%			21,145,631			3,694		0.07	%
Wholesale deposits 5		22,462				208		3.69	%			26,104			14		0.21	%
Repurchase agreements		873,819				1,765		0.80	%			1,015,369			467		0.18	%
FHLB advances		1,291,087				12,689		3.85	%			—			—		—	%
Subordinated debentures and other borrowed funds		211,953				1,930		3.61	%			167,545			1,028		2.43	%
Total funding liabilities		23,614,883				21,026		0.35	%			22,354,649			5,203		0.09	%
Other liabilities		252,298										199,207
Total liabilities		23,867,181										22,553,856
Stockholders’ Equity
Common stock		1,108										1,107
Paid-in capital		2,343,157										2,338,013
Retained earnings		946,195										815,726
Accumulated other comprehensive (loss) income		(505,203	)									47,624
Total stockholders’ equity		2,785,257										3,202,470
Total liabilities and stockholders’ equity	$	26,652,438									$	25,756,326
Net interest income (tax-equivalent)					$	209,542								$	192,421
Net interest spread (tax-equivalent)								3.28	%								3.21	%
Net interest margin (tax-equivalent)								3.30	%								3.21	%

______________________________

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 December 31, 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 $3.6 million and $3.2 million on tax-exempt debt securities income for the three months ended December 31, 2022 and 2021, respectively.
⁴ Includes tax effect of $225 thousand and $225 thousand on federal income tax credits for the three months ended December 31, 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)

	Year ended
	December 31, 2022										December 31, 2021
(Dollars in thousands)	Average Balance				Interest & Dividends			Average Yield/ Rate			Average Balance			Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	1,284,029			$	57,243		4.46	%		$	910,300		$	43,300		4.76	%
Commercial loans 1		11,902,971				555,244		4.66	%			9,900,056			476,678		4.81	%
Consumer and other loans		1,131,000				54,393		4.81	%			993,082			44,614		4.49	%
Total loans 2		14,318,000				666,880		4.66	%			11,803,438			564,592		4.78	%
Tax-exempt debt securities 3		1,916,731				70,438		3.67	%			1,584,313			59,713		3.77	%
Taxable debt securities 4		8,546,792				113,952		1.33	%			6,512,202			75,553		1.16	%
Total earning assets		24,781,523				851,270		3.44	%			19,899,953			699,858		3.52	%
Goodwill and intangibles		1,032,263										683,000
Non-earning assets		603,401										850,742
Total assets	$	26,417,187									$	21,433,695
Liabilities
Non-interest bearing deposits	$	8,005,821			$	—		—	%		$	6,544,843		$	—		—	%
NOW and DDA accounts		5,387,277				3,439		0.06	%			4,325,071			2,737		0.06	%
Savings accounts		3,270,799				1,191		0.04	%			2,493,174			771		0.03	%
Money market deposit accounts		3,926,737				6,401		0.16	%			3,144,507			3,914		0.12	%
Certificate accounts		955,829				3,249		0.34	%			976,894			4,643		0.48	%
Total core deposits		21,546,463				14,280		0.07	%			17,484,489			12,065		0.07	%
Wholesale deposits 5		11,862				246		2.07	%			31,103			70		0.22	%
Repurchase agreements		920,955				3,200		0.35	%			994,968			2,302		0.23	%
FHLB advances		584,562				17,317		2.92	%			—			—		—	%
Subordinated debentures and other borrowed funds		196,139				6,218		3.17	%			166,386			4,121		2.48	%
Total funding liabilities		23,259,981				41,261		0.18	%			18,676,946			18,558		0.10	%
Other liabilities		249,832										186,068
Total liabilities		23,509,813										18,863,014
Stockholders’ Equity
Common stock		1,107										993
Paid-in capital		2,340,952										1,708,271
Retained earnings		897,587										772,300
Accumulated other comprehensive income		(332,272	)									89,117
Total stockholders’ equity		2,907,374										2,570,681
Total liabilities and stockholders’ equity	$	26,417,187									$	21,433,695
Net interest income (tax-equivalent)					$	810,009								$	681,300
Net interest spread (tax-equivalent)								3.26	%								3.42	%
Net interest margin (tax-equivalent)								3.27	%								3.42	%

______________________________

¹ Includes tax effect of $6.3 million and $5.6 million on tax-exempt municipal loan and lease income for the nine months ended December 31, 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 $14.5 million and $12.2 million on tax-exempt debt securities income for the nine months ended December 31, 2022 and 2021, respectively.
⁴ Includes tax effect of $901 thousand and $990 thousand on federal income tax credits for the nine months ended December 31, 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)	Dec 31, 2022				Sep 30, 2022				Dec 31, 2021				Sep 30, 2022		Dec 31, 2021
Custom and owner occupied construction	$	298,461			$	288,977			$	263,758			3%		13%
Pre-sold and spec construction		297,895				291,146				257,568			2%		16%
Total residential construction		596,356				580,123				521,326			3%		14%
Land development		219,842				217,878				185,200			1%		19%
Consumer land or lots		206,604				204,241				173,305			1%		19%
Unimproved land		104,662				101,684				81,064			3%		29%
Developed lots for operative builders		60,987				62,800				41,840			(3)%		46%
Commercial lots		93,952				94,395				99,418			—		(5)%
Other construction		938,406				893,846				762,970			5%		23%
Total land, lot, and other construction		1,624,453				1,574,844				1,343,797			3%		21%
Owner occupied		2,833,469				2,811,614				2,645,841			1%		7%
Non-owner occupied		3,531,673				3,448,044				3,056,658			2%		16%
Total commercial real estate		6,365,142				6,259,658				5,702,499			2%		12%
Commercial and industrial		1,377,888				1,308,272				1,463,022			5%		(6)%
Agriculture		735,553				770,282				751,185			(5)%		(2)%
1st lien		1,808,502				1,738,151				1,393,267			4%		30%
Junior lien		40,445				36,677				34,830			10%		16%
Total 1-4 family		1,848,947				1,774,828				1,428,097			4%		29%
Multifamily residential		622,185				574,366				545,001			8%		14%
Home equity lines of credit		872,899				841,143				761,990			4%		15%
Other consumer		220,035				219,036				207,513			—		6%
Total consumer		1,092,934				1,060,179				969,503			3%		13%
States and political subdivisions		797,656				776,875				615,251			3%		30%
Other		198,012				193,526				153,147			2%		29%
Total loans receivable, including loans held for sale		15,259,126				14,872,953				13,492,828			3%		13%
Less loans held for sale 1		(12,314)				(21,720)				(60,797)			(43)%		(80)%
Total loans receivable	$	15,246,812			$	14,851,233			$	13,432,031			3%		14%

______________________________

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)	Dec 31, 2022			Sep 30, 2022		Dec 31, 2021		Dec 31, 2022		Dec 31, 2022		Dec 31, 2022
Custom and owner occupied construction	$	224		227		237		224		—		—
Pre-sold and spec construction		389		1,016		—		389		—		—
Total residential construction		613		1,243		237		613		—		—
Land development		138		149		250		138		—		—
Consumer land or lots		278		285		309		145		133		—
Unimproved land		78		94		124		78		—		—
Developed lots for operative builders		251		255		—		251		—		—
Other construction		12,884		12,884		12,884		12,884		—		—
Total land, lot and other construction		13,629		13,667		13,567		13,496		133		—
Owner occupied		2,076		2,687		3,918		1,763		313		—
Non-owner occupied		805		820		6,063		805		—		—
Total commercial real estate		2,881		3,507		9,981		2,568		313		—
Commercial and Industrial		3,326		3,453		3,066		2,760		542		24
Agriculture		2,574		4,102		29,151		2,574		—		—
1st lien		2,678		2,149		2,870		2,444		234		—
Junior lien		166		139		136		159		7		—
Total 1-4 family		2,844		2,288		3,006		2,603		241		—
Multifamily residential		4,535		4,635		6,548		4,535		—		—
Home equity lines of credit		1,393		1,550		1,563		1,255		138		—
Other consumer		911		555		460		747		156		8
Total consumer		2,304		2,105		2,023		2,002		294		8
Other		36		59		112		—		36		—
Total	$	32,742		35,059		67,691		31,151		1,559		32

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

	Accruing 30-89 Days Delinquent Loans,  by Loan Type									% Change from
(Dollars in thousands)	Dec 31, 2022			Sep 30, 2022			Dec 31, 2021			Sep 30, 2022		Dec 31, 2021
Custom and owner occupied construction	$	1,082		$	427		$	1,243		153%		(13)%
Pre-sold and spec construction		1,712			—			443		n/m		286%
Total residential construction		2,794			427			1,686		554%		66%
Land development		—			596			—		(100)%		n/m
Consumer land or lots		442			—			149		n/m		197%
Unimproved land		120			36			305		233%		(61)%
Developed lots for operative builders		958			30			—		3,093%		n/m
Commercial lots		47			2,158			—		(98)%		n/m
Other construction		209			—			30,788		n/m		(99)%
Total land, lot and other construction		1,776			2,820			31,242		(37)%		(94)%
Owner occupied		3,478			527			1,739		560%		100%
Non-owner occupied		496			—			1,558		n/m		(68)%
Total commercial real estate		3,974			527			3,297		654%		21%
Commercial and industrial		3,439			2,087			4,732		65%		(27)%
Agriculture		1,367			641			459		113%		198%
1st lien		2,174			761			2,197		186%		(1)%
Junior lien		190			72			87		164%		118%
Total 1-4 family		2,364			833			2,284		184%		4%
Multifamily Residential		492			—			—		n/m		n/m
Home equity lines of credit		1,182			1,004			1,994		18%		(41)%
Other consumer		1,824			1,089			1,681		67%		9%
Total consumer		3,006			2,093			3,675		44%		(18)%
States and political subdivisions		28			—			1,733		n/m		(98)%
Other		1,727			1,494			1,458		16%		18%
Total	$	20,967		$	10,922		$	50,566		92%		(59)%

______________________________

n/m - not measurable

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

	Net Charge-Offs (Recoveries), Year-to-Date Period Ending, By Loan Type										Charge-Offs		Recoveries
(Dollars in thousands)	Dec 31, 2022				Sep 30, 2022			Dec 31, 2021			Dec 31, 2022		Dec 31, 2022
Custom and owner occupied construction	$	17			17			—			17		—
Pre-sold and spec construction		(15	)		(12	)		(15	)		—		15
Total residential construction		2			5			(15	)		17		15
Land development		(34	)		(24	)		(233	)		—		34
Consumer land or lots		(46	)		(46	)		(165	)		—		46
Unimproved land		—			—			(241	)		—		—
Total land, lot and other construction		(80	)		(70	)		(639	)		—		80
Owner occupied		555			229			(423	)		1,968		1,413
Non-owner occupied		(242	)		(4	)		(357	)		—		242
Total commercial real estate		313			225			(780	)		1,968		1,655
Commercial and industrial		(70	)		395			41			1,659		1,729
Agriculture		(7	)		(5	)		(20	)		—		7
1st lien		(109	)		(99	)		(331	)		—		109
Junior lien		(302	)		(303	)		(650	)		6		308
Total 1-4 family		(411	)		(402	)		(981	)		6		417
Multifamily residential		136			—			(40	)		203		67
Home equity lines of credit		(91	)		(98	)		(621	)		85		176
Other consumer		451			257			236			658		207
Total consumer		360			159			(385	)		743		383
Other		7,572			5,540			5,148			10,374		2,802
Total	$	7,815			5,847			2,329			14,970		7,155

Visit our website at www.glacierbancorp.com

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

FAQ

What was Glacier Bancorp's net income in Q4 2022?

Glacier Bancorp reported a net income of $79.7 million in Q4 2022.

How much did the loan portfolio grow in Q4 2022?

The loan portfolio grew by $397 million, or 11% annualized, in Q4 2022.

What is the dividend declared by Glacier Bancorp for Q4 2022?

The Company declared a quarterly dividend of $0.33 per share for Q4 2022.

What was the increase in interest income for Glacier Bancorp in Q4 2022?

Interest income increased by 17% year-over-year, totaling $225 million in Q4 2022.

What was the total debt securities decrease in Q4 2022 for GBCI?

Total debt securities decreased by $489 million, or 5%, during Q4 2022.