Glacier Bancorp, Inc. Announces Results for the Quarter and Year Ended December 31, 2021

Rhea-AI Summary

Glacier Bancorp (GBCI) reported a net income of $50.7 million for Q4 2021, down 38% year-over-year. Diluted EPS decreased to $0.46, primarily due to $22.3 million in credit loss expenses and $8.2 million in acquisition-related costs from acquiring Altabank. Despite a 19% increase in net interest income to $184 million, total non-interest income fell by 23% to $34.4 million. The company's loan portfolio grew significantly, with core deposits up 22% in 2021. A special dividend of $0.10 per share was declared, marking the 18th special dividend issued.

Positive

• Net interest income increased by 19% to $184 million in Q4 2021.
• Core deposits grew by 22% in 2021, reaching $21.3 billion.
• Record net income of $285 million for the year 2021, a 7% increase from 2020.
• Successfully funded 8,525 PPP loans totaling $555 million in H1 2021.
• Declared dividends of $1.37 per share for 2021, a 3% increase from 2020.

Negative

• Net income of $50.7 million in Q4 2021 declined by 38% compared to Q4 2020.
• Diluted EPS dropped 47% to $0.46 due to increased credit loss expenses post-acquisition.
• Total non-interest income decreased by 23% to $34.4 million, primarily from lower loan sale gains.
• Credit loss expense of $22.3 million associated with the Altabank acquisition negatively impacted earnings.

4th Quarter 2021 Highlights:

• Net interest income, on a tax-equivalent basis, excluding the PPP loans, of $184 million, increased $29.4 million, or 19 percent, over the prior quarter net interest income of $154 million.
• The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, organically grew $448 million, or 16 percent annualized, in the current quarter.
• Core deposits organically increased $560 million, or 13 percent annualized, during the current quarter.
• Received $201 million in PPP loan forgiveness proceeds from the U.S. Small Business Administration (“SBA”) during the current quarter compared to $327 million in the prior quarter.
• The Company transferred the listing of its common stock to the New York Stock Exchange (“NYSE”) from the NASDAQ Global Select Market.
• Declared and paid a regular quarterly dividend of $0.32 per share. The Company has declared 147 consecutive quarterly dividends and has increased the dividend 48 times.
• Declared a special dividend of $0.10 per share. This was the 18th special dividend the Company has declared.
  

Year 2021 Highlights:

• Record net income of $285 million, an increase of $18.4 million, or 7 percent, over the prior year net income of $266 million.
• Diluted earnings per share of $2.86, an increase of 2 percent from the prior year diluted earnings per share of $2.81.
• Net interest income, on a tax-equivalent basis, excluding the PPP loans, of $636 million, an increase of $57.5 million, or 10 percent, over the prior year net interest income of $578 million.
• The loan portfolio, excluding the PPP loans, organically increased $1.160 billion, or 11 percent, in 2021.
• Core deposits organically increased $3.278 billion, or 22 percent, during 2021.
• The Company funded 8,525 PPP loans in the amount of $555 million during the first half of 2021.
• The Company received $1.305 billion in PPP loan forgiveness proceeds from the U.S. Small Business Administration (“SBA”) during 2021.
• Dividends declared of $1.37 per share, an increase of $0.04 per share, or 3 percent, over the prior year dividends of $1.33.
• Completed the acquisition of Altabancorp, the parent company of Altabank, with total acquired assets of $4.132 billion. Based in American Fork, Utah, Altabank is the largest community bank in Utah. This was the Company’s 24th acquisition since 2000 and the largest acquisition in its history.
  

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, 2021				Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Dec 31, 2021			Dec 31, 2020
Operating results
Net income	$	50,709			75,619			77,627			80,802			81,860			284,757			266,400
Basic earnings per share	$	0.46			0.79			0.81			0.85			0.86			2.87			2.81
Diluted earnings per share	$	0.46			0.79			0.81			0.85			0.86			2.86			2.81
Dividends declared per share1	$	0.42			0.32			0.32			0.31			0.45			1.37			1.33
Market value per share
Closing	$	56.70			55.35			55.08			57.08			46.01			56.70			46.01
High	$	60.54			56.84			63.05			67.35			47.05			67.35			47.05
Low	$	52.62			48.62			52.99			44.55			31.29			44.55			26.66
Selected ratios and other data
Number of common stock shares outstanding		110,687,533			95,512,659			95,507,234			95,501,819			95,426,364			110,687,533			95,426,364
Average outstanding shares - basic		110,687,365			95,510,772			95,505,877			95,465,801			95,418,958			99,313,255			94,883,864
Average outstanding shares - diluted		110,789,632			95,586,202			95,580,904			95,546,922			95,492,258			99,398,250			94,932,353
Return on average assets (annualized)		0.78	%		1.43	%		1.55	%		1.73	%		1.78	%		1.33	%		1.62	%
Return on average equity (annualized)		6.28	%		12.49	%		13.25	%		14.12	%		14.27	%		11.08	%		12.15	%
Efficiency ratio		57.68	%		50.17	%		49.92	%		46.75	%		50.34	%		51.35	%		49.97	%
Dividend payout ratio2		91.30	%		40.51	%		39.51	%		36.47	%		52.33	%		47.74	%		47.33	%
Loan to deposit ratio		63.24	%		65.06	%		67.64	%		70.72	%		76.29	%		63.24	%		76.29	%
Number of full time equivalent employees		3,436			2,978			2,987			2,994			2,970			3,436			2,970
Number of locations		224			194			194			193			193			224			193
Number of ATMs		273			250			250			250			250			273			250

______________________
¹ Includes a special dividend declared of $0.10 and $0.15 per share for the three and twelve months ended December 31, 2021 and December 31, 2020, respectively.
² Excluding the special dividend, the dividend payout ratio was 69.57 percent and 34.88 percent for the three months ended December 31, 2021 and 2020, respectively and 44.25 percent and 41.99 percent for the twelve months ended December 31, 2021 and 2020, respectively.

KALISPELL, Mont., Jan. 27, 2022 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $50.7 million for the current quarter, a decrease of $31.2 million, or 38 percent, from the $81.9 million of net income for the prior year fourth quarter. Diluted earnings per share for the current quarter was $0.46 per share, a decrease of 47 percent from the prior year fourth quarter diluted earnings per share of $0.86. The decrease in fourth quarter earnings over the prior year was driven primarily by the $22.3 million of credit loss expense and $8.2 million of acquisition-related expenses from the acquisition of Altabank. In addition, there was a $14.8 million decrease in gain on sale of loans with the slowing of purchase and refinance activity after the historic levels in the prior year. The credit loss expense due to the acquisition of Altabank reflects the requirement to fully fund an allowance for credit losses on loans and unfunded commitments post-acquisition. “The Glacier team ended 2021 on a high note with very strong net interest income and loan growth,” said Randy Chesler, President and Chief Executive Officer. “All of our Divisions across the West are extremely well positioned to thrive in 2022.”

Net income for 2021 was $285 million, an increase of $18.4 million, or 7 percent, from the $266 million net income from the prior year. Diluted earnings per share for the current year was $2.86 per share, an increase of 2 percent, from the diluted earnings per share of $2.81 for the same period last year.

On October 1, 2021, the Company completed the acquisition of Altabancorp, the parent company of Altabank, based in American Fork, Utah (collectively, “Alta”) and the largest community bank in Utah. Alta provides banking services to individuals and businesses in Utah with twenty-five banking offices from Preston, Idaho to St. George, Utah. Alta became the seventeenth division of the Company and significantly increased the Company’s presence in the State of Utah.

The Company’s results of operations and financial condition include the Alta acquisition beginning on the acquisition date and the following table discloses the preliminary fair value estimates of select classifications of assets and liabilities acquired:

	Altabank
(Dollars in thousands)	October 1, 2021
Total assets	4,131,662
Cash and cash equivalents	1,622,727
Debt securities	6,658
Loans receivable	1,902,321
Non-interest bearing deposits	1,201,464
Interest bearing deposits	2,072,355
Borrowings	—

Asset Summary

											$ Change from
(Dollars in thousands)	Dec 31, 2021				Sep 30, 2021			Dec 31, 2020			Sep 30, 2021			Dec 31, 2020
Cash and cash equivalents	$	437,686			348,888			633,142			88,798			(195,456	)
Debt securities, available-for-sale		9,170,849			7,390,580			5,337,814			1,780,269			3,833,035
Debt securities, held-to-maturity		1,199,164			1,128,299			189,836			70,865			1,009,328
Total debt securities		10,370,013			8,518,879			5,527,650			1,851,134			4,842,363
Loans receivable
Residential real estate		1,051,883			781,538			802,508			270,345			249,375
Commercial real estate		8,630,831			6,912,569			6,315,895			1,718,262			2,314,936
Other commercial		2,664,190			2,598,616			3,054,817			65,574			(390,627	)
Home equity		736,288			660,920			636,405			75,368			99,883
Other consumer		348,839			340,248			313,071			8,591			35,768
Loans receivable		13,432,031			11,293,891			11,122,696			2,138,140			2,309,335
Allowance for credit losses		(172,665	)		(153,609	)		(158,243	)		(19,056	)		(14,422	)
Loans receivable, net		13,259,366			11,140,282			10,964,453			2,119,084			2,294,913
Other assets		1,873,580			1,305,970			1,378,961			567,610			494,619
Total assets	$	25,940,645			21,314,019			18,504,206			4,626,626			7,436,439

Excluding the $1.623 billion of cash received from the Alta acquisition that was invested in the current quarter, total debt securities at December 31, 2021 increased $228 million, or 3 percent, during the current quarter and increased $3.220 billion, or 58 percent, from the prior year fourth quarter. The Company continues to selectively purchase debt securities with excess liquidity from the increase in core deposits and SBA forgiveness of PPP loans. Debt securities represented 40 percent of total assets at December 31, 2021 and September 30, 2021 compared to 30 percent of total assets at December 31, 2020.

The loan portfolio of $13.432 billion at December 31, 2021 increased $2.138 billion, or 19 percent, in the current quarter and increased $2.309 billion, or 21 percent, from the prior year end. Excluding the PPP loans and loans from the Alta acquisition, the loan portfolio increased $448 million, or 16 percent annualized, during the current quarter with the largest increase in commercial real estate which increased $315 million, or 18 percent annualized. Excluding the PPP loans and loans from the Alta acquisition, the loan portfolio increased $1.160 billion, or 11 percent, from the prior year end with the largest increase in commercial real estate loans which increased $912 million, 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, 2021				Sep 30, 2021			Dec 31, 2020
Allowance for credit losses
Balance at beginning of period	$	158,243			158,243			124,490
Impact of adopting CECL		—			—			3,720
Acquisitions		371			—			49
Provision for credit losses		16,380			(2,921	)		37,637
Charge-offs		(11,594	)		(8,566	)		(13,808	)
Recoveries		9,265			6,853			6,155
Balance at end of period	$	172,665			153,609			158,243
Provision for credit losses
Loan portfolio	$	16,380			(2,921	)		37,637
Unfunded loan commitments		6,696			(1,959	)		2,128
Total provision for credit losses	$	23,076			(4,880	)		39,765
Other real estate owned	$	—			88			1,182
Other foreclosed assets		18			18			562
Accruing loans 90 days or more past due		17,141			5,172			1,725
Non-accrual loans		50,532			45,901			31,964
Total non-performing assets	$	67,691			51,179			35,433
Non-performing assets as a percentage of subsidiary assets		0.26	%		0.24	%		0.19	%
Allowance for credit losses as a percentage of non-performing loans		255	%		301	%		470	%
Allowance for credit losses as a percentage of total loans		1.29	%		1.36	%		1.42	%
Net charge-offs as a percentage of total loans		0.02	%		0.02	%		0.07	%
Accruing loans 30-89 days past due	$	50,566			26,002			22,721
Accruing troubled debt restructurings	$	34,591			36,666			42,003
Non-accrual troubled debt restructurings	$	2,627			2,820			3,507
U.S. government guarantees included in non-performing assets	$	4,028			4,116			3,011

Non-performing assets of $67.7 million at December 31, 2021 increased $16.5 million, or 32 percent, over the prior quarter which was primarily attributable to the acquisition of Alta. Non-performing assets increased $32.3 million, or 91 percent, over the prior year fourth quarter primarily as a result of the Alta acquisition and a single credit relationship. Non-performing assets as a percentage of subsidiary assets at December 31, 2021 was 0.26 percent compared to 0.24 percent in the prior quarter and 0.19 percent in the prior year fourth quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $50.6 million at December 31, 2021 increased $24.6 million from the prior quarter with a large portion of the increase primarily isolated to a single credit relationship. Early stage delinquencies increased $27.8 million from the prior year fourth quarter. Early stage delinquencies as a percentage of loans at December 31, 2021 was 0.38 percent, which was an increase of 15 basis points from prior quarter and an 18 basis points increase from prior year fourth quarter.

The current quarter credit loss expense of $28.0 million included $18.1 million of provision for credit loss on loans and $4.2 million of provision for credit loss on unfunded loan commitments from the acquisition of Alta. The credit loss expense due to the acquisition of Altabank reflects the requirement to fully fund an allowance for credit losses on loans and unfunded commitments post-acquisition. Excluding the Alta acquisition, the current quarter credit loss expense was $5.7 million, including $1.2 million of credit loss from loans and $4.5 million of credit loss from unfunded loan commitments.

The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at December 31 2021 was 1.29 percent which was a 7 basis points decrease compared to the prior quarter and a 13 basis points decrease from the prior year fourth quarter. The decrease in the ACL as a percentage of total loans during the current year was driven by the improvement in the economic forecasts.

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 2021	$	19,301			$	616			1.29	%		0.38	%		0.26	%
Third quarter 2021		2,313				152			1.36	%		0.23	%		0.24	%
Second quarter 2021		(5,723	)			(725	)		1.35	%		0.11	%		0.26	%
First quarter 2021		489				2,286			1.39	%		0.40	%		0.19	%
Fourth quarter 2020		(1,528	)			4,781			1.42	%		0.20	%		0.19	%
Third quarter 2020		2,869				826			1.42	%		0.15	%		0.25	%
Second quarter 2020		13,552				1,233			1.42	%		0.22	%		0.27	%
First quarter 2020		22,744				813			1.49	%		0.41	%		0.26	%

Excluding the acquisition of Alta, the current quarter provision for credit loss expense for loans was $1.2 million which was a decrease of $1.1 million from the prior quarter provision for credit loss expense of $2.3 million and an increase of $2.8 million from the prior year fourth quarter provision for credit loss benefit of $1.5 million.

Net charge-offs for the current quarter were $616 thousand compared to $152 thousand for the prior quarter and $4.8 million from the same quarter last year. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

PPP Loans

	Three Months ended							Year ended
(Dollars in thousands)	Dec 31, 2021			Sep 30, 2021		Jun 30, 2021		Dec 31, 2021		Dec 31, 2020
PPP interest income	$	8,660		12,894		10,328		45,405		38,180
Deferred compensation on originating PPP loans		—		—		1,522		6,735		8,850
Total PPP income impact	$	8,660		12,894		11,850		52,140		47,030

(Dollars in thousands)	Dec 31, 2021			Sep 30, 2021		Dec 31, 2020
PPP Round 1 loans	$	32,348		56,048		909,173
PPP Round 2 loans		136,329		312,865		—
Total PPP loans		168,677		368,913		909,173
Net remaining fees - Round 1		269		485		17,605
Net remaining fees - Round 2		4,808		12,501		—
Total net remaining fees	$	5,077		12,986		17,605

The SBA Round 2 PPP program ended in early May 2021 after the available funds were fully drawn upon. During the first half of 2021, the Company originated $555 million of Round 2 PPP loans which generated $33.2 million of SBA deferred processing fees and $6.7 million of deferred compensation costs for total net deferred fees of $26.5 million.

During the current year, the SBA processing fees received on Round 2 averaged 5.99 percent which compared to the average of 3.75 percent received on Round 1 in the prior year. The increase in the fee percentage received on Round 2 was the result of an increase in the number of smaller loans which receive a higher percentage fee.

The Company received $201 million in PPP loan forgiveness during the current quarter and received $1.305 billion in 2021. As of December 31, 2021, the Company had $32.3 million remaining, or 2 percent of the $1.472 billion of Round 1 PPP loans originated in the prior year still to be forgiven and had $136 million remaining, or 25 percent of the $555 million of Round 2 PPP loans originated in the current year.

In the current quarter, the Company recognized $8.7 million of interest income (including deferred fees and costs) from the Round 1 and Round 2 PPP loans. The income recognized in the current quarter included $7.4 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of the PPP loans at December 31, 2021 were $5.1 million, which will be recognized into interest income over the remaining life of the loans or when the loans are forgiven in whole or in part by the SBA.

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, 2021			Sep 30, 2021		Dec 31, 2020		Sep 30, 2021			Dec 31, 2020
Deposits
Non-interest bearing deposits	$	7,779,288		6,632,402		5,454,539		1,146,886			2,324,749
NOW and DDA accounts		5,301,832		4,299,244		3,698,559		1,002,588			1,603,273
Savings accounts		3,180,046		2,502,268		2,000,174		677,778			1,179,872
Money market deposit accounts		4,014,128		3,123,425		2,627,336		890,703			1,386,792
Certificate accounts		1,036,077		919,852		978,779		116,225			57,298
Core deposits, total		21,311,371		17,477,191		14,759,387		3,834,180			6,551,984
Wholesale deposits		25,878		26,123		38,142		(245	)		(12,264	)
Deposits, total		21,337,249		17,503,314		14,797,529		3,833,935			6,539,720
Repurchase agreements		1,020,794		1,040,939		1,004,583		(20,145	)		16,211
Other borrowed funds		44,094		33,671		33,068		10,423			11,026
Subordinated debentures		132,620		132,580		139,959		40			(7,339	)
Other liabilities		228,266		215,899		222,026		12,367			6,240
Total liabilities	$	22,763,023		18,926,403		16,197,165		3,836,620			6,565,858

Excluding the Alta acquisition, core deposits increased $560 million, or 13 percent annualized, from the prior quarter and increased $3.278 billion, or 22 percent, from the prior year fourth quarter. Non-interest bearing deposits of $7.779 billion as of December 31, 2021 organically increased $1.123 billion, or 21 percent, from the prior year fourth quarter. The unprecedented increase in deposits over the prior two years resulted from a number of factors including the PPP loan proceeds deposited by customers, federal stimulus deposits and the increase in customer savings. Non-interest bearing deposits were 37 percent of total core deposits at December 31, 2021 compared to 38 percent of total core deposits at September 30, 2021 and 37 percent at December 31, 2020.

The low levels of borrowings, including wholesale deposits and Federal Home Loan Bank (“FHLB”) advances, reflected the significant increase in core deposits which funded the asset growth.

Stockholders’ Equity Summary

											$ Change from
(Dollars in thousands, except per share data)	Dec 31, 2021				Sep 30, 2021			Dec 31, 2020			Sep 30, 2021			Dec 31, 2020
Common equity	$	3,150,263			2,309,957			2,163,951			840,306			986,312
Accumulated other comprehensive income		27,359			77,659			143,090			(50,300	)		(115,731	)
Total stockholders’ equity		3,177,622			2,387,616			2,307,041			790,006			870,581
Goodwill and core deposit intangible, net		(1,037,652	)		(562,058	)		(569,522	)		(475,594	)		(468,130	)
Tangible stockholders’ equity	$	2,139,970			1,825,558			1,737,519			314,412			402,451
Stockholders’ equity to total assets		12.25	%		11.20	%		12.47	%
Tangible stockholders’ equity to total tangible assets		8.59	%		8.80	%		9.69	%
Book value per common share	$	28.71			25.00			24.18			3.71			4.53
Tangible book value per common share	$	19.33			19.11			18.21			0.22			1.12

Tangible stockholders’ equity of $2.140 billion at December 31, 2021 increased $314 million, or 17 percent, from the prior quarter and increased $402 million, or 23 percent, from the prior year fourth quarter which was the result of $840 million of Company common stock issued for the acquisition of Alta and earnings retention. The increase was partially offset by the increase in goodwill and core deposits associated with the Alta acquisition and a decrease in other comprehensive income. Tangible book value per common share of $19.33 at the current quarter end increased $0.22 per share, or 1 percent, from the prior quarter and increased $1.12 per share, or 6 percent, from a year ago.

Cash Dividends
On December 29, 2021, the Company’s Board of Directors declared a special cash dividend of $0.10 per share, the 18th special dividend the Company has declared. The special dividend was payable on January 20, 2022 to shareholders of record on January 11, 2022. On November 17, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.32 per share. The dividend was payable December 16, 2021 to shareholders of record on December 7, 2021. The dividend was the 147th 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 December 31, 2021 
Compared to September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020

Income Summary

	Three Months ended
(Dollars in thousands)	Dec 31, 2021				Sep 30, 2021				Jun 30, 2021			Mar 31, 2021			Dec 31, 2020
Net interest income
Interest income	$	192,825				166,741			159,956			161,552			171,308
Interest expense		5,203				4,128			4,487			4,740			5,550
Total net interest income		187,622				162,613			155,469			156,812			165,758
Non-interest income
Service charges and other fees		17,576				15,154			13,795			12,792			13,713
Miscellaneous loan fees and charges		3,745				2,592			2,923			2,778			2,293
Gain on sale of loans		11,431				13,902			16,106			21,624			26,214
(Loss) gain on sale of investments		(693	)			(168	)		(61	)		284			124
Other income		2,303				3,335			2,759			2,643			2,360
Total non-interest income		34,362				34,815			35,522			40,121			44,704
Total income		221,984				197,428			190,991			196,933			210,462
Net interest margin (tax-equivalent)		3.21	%			3.39	%		3.44	%		3.74	%		4.03	%
					$ Change from
(Dollars in thousands)					Sep 30, 2021				Jun 30, 2021			Mar 31, 2021			Dec 31, 2020
Net interest income
Interest income					$	26,084			32,869			31,273			21,517
Interest expense						1,075			716			463			(347	)
Total net interest income						25,009			32,153			30,810			21,864
Non-interest income
Service charges and other fees						2,422			3,781			4,784			3,863
Miscellaneous loan fees and charges						1,153			822			967			1,452
Gain on sale of loans						(2,471	)		(4,675	)		(10,193	)		(14,783	)
(Loss) gain on sale of investments						(525	)		(632	)		(977	)		(817	)
Other income						(1,032	)		(456	)		(340	)		(57	)
Total non-interest income						(453	)		(1,160	)		(5,759	)		(10,342	)
Total income					$	24,556			30,993			25,051			11,522

Net Interest Income
The current quarter net interest income of $188 million increased $25.0 million, or 15 percent, over the prior quarter and increased $21.9 million, or 13 percent, from the prior year fourth quarter. The increases were primarily attributable to the $25.6 million of net interest income from Alta bank division. The current quarter interest income of $193 million increased $26.1 million, or 16 percent, compared to the prior quarter and increased $21.5 million, or 13 percent, over the prior year fourth quarter due to an increase in interest income from Alta bank division. The interest income (which included deferred fees and deferred costs) from the PPP loans was $8.7 million in the current quarter, $12.9 million in the prior quarter and $21.5 million in the prior year fourth quarter.

The current quarter interest expense of $5.2 million increased $1.1 million, or 26 percent, over the prior quarter primarily as a result of the the addition of the Alta bank division. Interest expense decreased $347 thousand, or 6 percent, over the prior year fourth quarter primarily the result of a decrease in deposit rates. The total cost of funding (including non-interest bearing deposits) was 9 basis points in the current and prior quarter compared to 14 basis points in the prior year fourth quarter which was driven by a decrease in rates in deposits and borrowings.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.21 percent compared to 3.39 percent in the prior quarter and 4.03 in the prior year fourth quarter. The core net interest margin, excluding 4 basis points of discount accretion, 2 basis points from non-accrual interest and 11 basis points increase from the PPP loans, was 3.04 percent compared to 3.17 in the prior quarter and 3.76 percent in the prior year fourth quarter. The core net interest margin decreased 13 basis points in the current quarter and decreased 72 basis points from the prior fourth quarter due to a decrease in earning asset yields. Earning asset yields have decreased due to the combined impact of the significant increase in the debt securities and the lower yields on both core loans and debt securities. Debt securities comprised 43.8 percent of the earning assets during the current quarter compared to 42.5 percent in the prior quarter and 31.8 percent in the prior year fourth quarter.

Non-interest Income
Non-interest income for the current quarter totaled $34.4 million which was a decrease of $453 thousand, or 1 percent, over the prior quarter and a decrease of $10.3 million, or 23 percent, over the same quarter last year. Gain on the sale of loans of $11.4 million for the current quarter decreased $2.5 million, or 18 percent, compared to the prior quarter and decreased $14.8 million, or 56 percent, from the prior year fourth quarter. The current quarter mortgage activity was lower than prior periods as a result reduced mortgage purchase and refinance activity after the historic highs the Company recently experienced.

Service charges and other fees increased $2.4 million from the prior quarter and was primarily the result of the addition of Alta bank division. Service charges and other fees increased $3.9 million from the prior year fourth quarter as a result of increased customer accounts and transaction activity and activity from Alta bank division.

Non-interest Expense Summary

	Three Months ended
(Dollars in thousands)	Dec 31, 2021			Sep 30, 2021				Jun 30, 2021			Mar 31, 2021		Dec 31, 2020
Compensation and employee benefits	$	77,703			66,364			64,109			62,468		70,540
Occupancy and equipment		11,259			9,412			9,208			9,515		9,728
Advertising and promotions		3,436			3,236			2,906			2,371		2,797
Data processing		7,468			5,135			5,661			5,206		5,211
Other real estate owned and foreclosed assets		34			142			48			12		550
Regulatory assessments and insurance		2,657			2,011			1,702			1,879		1,034
Core deposit intangibles amortization		2,807			2,488			2,488			2,488		2,612
Other expenses		28,683			15,320			13,960			12,646		18,715
Total non-interest expense	$	134,047			104,108			100,082			96,585		111,187
				$ Change from
(Dollars in thousands)				Sep 30, 2021				Jun 30, 2021			Mar 31, 2021		Dec 31, 2020
Compensation and employee benefits				$	11,339			13,594			15,235		7,163
Occupancy and equipment					1,847			2,051			1,744		1,531
Advertising and promotions					200			530			1,065		639
Data processing					2,333			1,807			2,262		2,257
Other real estate owned					(108	)		(14	)		22		(516	)
Regulatory assessments and insurance					646			955			778		1,623
Core deposit intangibles amortization					319			319			319		195
Other expenses					13,363			14,723			16,037		9,968
Total non-interest expense				$	29,939			33,965			37,462		22,860

Total non-interest expense of $134 million for the current quarter increased $29.9 million, or 29 percent, over the prior quarter and increased $22.9 million, or 21 percent, over the prior year fourth quarter which was primarily driven by the acquisition of Alta. Excluding the Alta bank division and acquisition-related expenses, non-interest expense increased $5.3 million, or 5 percent, from the prior quarter and decreased $1.8 million, or 2 percent, from the prior year fourth quarter. The current quarter non-interest expense includes $17.0 million of expense from Alta bank division, $8.2 million of acquisition-related expenses, $806 thousand of increased compensation and employee benefits due to incremental overtime at several bank divisions, $1.1 million of expenses primarily due to branch upgrades, and $600 thousand of increased loan expense due to the loan growth.

Federal and State Income Tax Expense
Tax expense during the fourth quarter of 2021 was $9.3 million, a decrease of $7.7 million, or 45 percent, compared to the prior quarter and a decrease of $9.7 million, or 51 percent, from the prior year fourth quarter. The effective tax rate in the current quarter was 15.5 compared to 18.3 in the prior quarter and 18.8 percent in the prior year fourth quarter. The lower effective tax rate in the current quarter was attributable to lower taxable income.

Efficiency Ratio
The efficiency ratio was 57.68 percent in the current quarter compared to 50.17 percent in the prior quarter and 50.34 in the prior year fourth quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 54.09 percent in the current quarter compared to 49.94 percent in the prior quarter and 50.11 percent in the prior year fourth quarter. The increase in efficiency ratio was driven by the decrease in gain on sale of loans and the increase in non-interest expense.

Operating Results for Year Ended December 31, 2021
Compared to December 31, 2020

Income Summary

	Year ended
(Dollars in thousands)	Dec 31, 2021				Dec 31, 2020				$ Change				% Change
Net interest income
Interest income	$	681,074			$	627,064			$	54,010			9		%
Interest expense		18,558				27,315				(8,757	)		(32	)	%
Total net interest income		662,516				599,749				62,767			10		%
Non-interest income
Service charges and other fees		59,317				52,503				6,814			13		%
Miscellaneous loan fees and charges		12,038				7,344				4,694			64		%
Gain on sale of loans		63,063				99,450				(36,387	)		(37	)	%
(Loss) gain on sale of investments		(638	)			1,139				(1,777	)		(156	)	%
Other income		11,040				12,431				(1,391	)		(11	)	%
Total non-interest income		144,820				172,867				(28,047	)		(16	)	%
Total Income	$	807,336			$	772,616			$	34,720			4		%
Net interest margin (tax-equivalent)		3.42	%			4.09	%

Net Interest Income
Net-interest income of $663 million for 2021 increased $62.8 million, or 10 percent, over the same period in 2020 and included a $25.6 million increase from the acquisition of Alta. Interest income of $681 million for the current year increased $54.0 million, or 9 percent, from the prior year and was primarily attributable to a $26.9 million increase from the Alta bank division and a $22.5 million increase in interest income on debt securities. Interest income on debt securities increased $22.5 million, or 23 percent, over the prior year which resulted from the increased volume of debt securities. Interest expense of $18.6 million during 2021 decreased $8.8 million, or 32 percent over the prior year primarily as a result of a decrease in the cost of deposits. The total funding cost (including non-interest bearing deposits) for 2021 was 10 basis points, which decreased 9 basis points compared to 19 basis points in 2020.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 2021 was 3.42 percent, a 67 basis points decrease from the net interest margin of 4.09 percent for the same period in the prior year. The core net interest margin, excluding 4 basis points of discount accretion, 2 basis point of non-accrual interest and 12 basis points increase from the PPP loans, was 3.24 which was an 81 basis point decrease from the core margin of 4.05 percent in the prior year. Although the Company was successful in reducing the total cost of funding, it was not enough to outpace the lower yields on core loans and debt securities driven by the current interest rate environment and the shift in the earning asset mix to lower yielding debt securities.

Non-interest Income
Non-interest income of $145 million for 2021 decreased $28.0 million, or 16 percent, over the same period last year. Gain on the sale of loans of $63.1 million for 2021 decreased $36.4 million, or 37 percent, compared to the same period last year which was the result of the anticipated slowing of purchase and refinance activity after the historically high levels in the prior year.

Service charges and other fees of $59.3 million for 2021 increased $6.8 million, or 13 percent, from prior year as a result of additional fees from increased customer accounts and transaction activity and the acquisition of Alta. Miscellaneous loan fees and charges of $12.0 million increased $4.7 million, or 64 percent, driven by increases in loan servicing income and credit card interchange fees due to increased activity. Other income of $11.0 million decreased $1.4 million, or 11 percent, from the prior year.

Non-interest Expense Summary

	Year ended
(Dollars in thousands)	Dec 31, 2021			Dec 31, 2020			$ Change				% Change
Compensation and employee benefits	$	270,644		$	253,047		$	17,597			7		%
Occupancy and equipment		39,394			37,673			1,721			5		%
Advertising and promotions		11,949			10,201			1,748			17		%
Data processing		23,470			21,132			2,338			11		%
Other real estate owned and foreclosed assets		236			923			(687	)		(74	)	%
Regulatory assessments and insurance		8,249			4,656			3,593			77		%
Core deposit intangibles amortization		10,271			10,370			(99	)		(1	)	%
Other expenses		70,609			66,809			3,800			6		%
Total non-interest expense	$	434,822		$	404,811		$	30,011			7		%

Total non-interest expense of $435 million for 2021 increased $30.0 million, or 7 percent, over the prior year same period. Excluding the Alta bank division and acquisition-related expenses, non-interest expense increased $11.0 million, or 3 percent, over the prior year. Included in the current year was $9.8 million of acquisition-related expenses and $17.0 million of expenses from the Alta bank division.

Compensation and employee benefits for 2021 increased $17.6 million, or 7 percent, from last year due to the increased number of employees from acquisitions and organic growth. Advertising and promotions for 2021 increased $1.7 million, or 17 percent, from the prior year. Data processing expense increased $2.3 million, or 11 percent, from the prior year primarily from the acquisition of Alta. Regulatory assessment and insurance for 2021 increased $3.6 million from the prior year as a result of organic growth, the State of Montana waiving the first semi-annual regulatory assessment of 2020 and Small Bank assessment credits applied by the FDIC in the first quarter of 2020. Other expenses of $70.6 million, increased $3.8 million, or 6 percent, from the prior year. Current year other expenses included acquisition-related expenses of $9.8 million compared to $7.8 million in the prior year.

Provision for Credit Losses
The provision for credit loss expense was $23.1 million for 2021 compared to $39.8 million in 2020. Excluding the impact from the Alta and State Bank of Arizona acquisitions, the current year provision for credit loss expense on unfunded loan commitments was $2.5 million compared to a credit loss expense of $2.1 million in the prior year. Excluding the impact from the acquisitions, the current year provision for credit loss benefit on loans was $1.7 million compared to a credit loss expense of $32.8 million in the prior year which was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the current year were $2.3 million compared to $7.7 million during the prior year.

Federal and State Income Tax Expense
Tax expense of $64.7 million in 2021 increased $3.0 million, or 5 percent, over the prior year same period. The effective tax rate for 2021 was 18.5 percent compared to 18.8 percent in the prior year same period.

Efficiency Ratio
The efficiency ratio was 51.35 percent for 2021 compared to 49.97 percent for the same period last year. Excluding acquisition-related expenses, the efficiency ratio was 50.16 in 2021 compared to 48.98 in 2020 and the increase was primarily driven by the reduction in gain on sale of loans. “The Bank divisions have worked diligently to control their expenses to achieve an efficiency ratio near 50 percent,” said Ron Copher, Chief Financial Officer.

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 management’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 words of similar meaning. 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 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 of 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 Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability;
• changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties;
• legislative or regulatory changes, such as the those signaled by the Biden Administration, as well as increased banking and consumer protection regulation that adversely affect the Company’s business, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
• ability to complete pending or prospective future acquisitions;
• costs or difficulties related to the completion and integration of acquisitions;
• the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
• reduced demand for banking products and services;
• the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
• competition among financial institutions in the Company's markets may increase significantly;
• the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
• the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
• consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
• dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
• material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
• natural disasters, including fires, floods, earthquakes, and other unexpected events;
• the Company’s success in managing risks involved in the foregoing; and
• the effects of any reputational damage to the Company resulting from any of the foregoing.

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

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, January 28, 2022. The conference call will be accessible by telephone and webcast. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 3278859. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/48wx48iw. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 3278859 by February 4, 2022.

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).

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

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

(Dollars in thousands, except per share data)	Dec 31, 2021				Sep 30, 2021			Dec 31, 2020
Assets
Cash on hand and in banks	$	198,087			250,579			227,108
Interest bearing cash deposits		239,599			98,309			406,034
Cash and cash equivalents		437,686			348,888			633,142
Debt securities, available-for-sale		9,170,849			7,390,580			5,337,814
Debt securities, held-to-maturity		1,199,164			1,128,299			189,836
Total debt securities		10,370,013			8,518,879			5,527,650
Loans held for sale, at fair value		60,797			94,138			166,572
Loans receivable		13,432,031			11,293,891			11,122,696
Allowance for credit losses		(172,665	)		(153,609	)		(158,243	)
Loans receivable, net		13,259,366			11,140,282			10,964,453
Premises and equipment, net		372,597			316,191			325,335
Other real estate owned and foreclosed assets		18			106			1,744
Accrued interest receivable		76,673			79,699			75,497
Deferred tax asset		27,693			—			—
Core deposit intangible, net		52,259			48,045			55,509
Goodwill		985,393			514,013			514,013
Non-marketable equity securities		10,020			10,021			10,023
Bank-owned life insurance		167,671			123,729			123,763
Other assets		120,459			120,028			106,505
Total assets	$	25,940,645			21,314,019			18,504,206
Liabilities
Non-interest bearing deposits	$	7,779,288			6,632,402			5,454,539
Interest bearing deposits		13,557,961			10,870,912			9,342,990
Securities sold under agreements to repurchase		1,020,794			1,040,939			1,004,583
Other borrowed funds		44,094			33,671			33,068
Subordinated debentures		132,620			132,580			139,959
Accrued interest payable		2,409			2,437			3,305
Deferred tax liability		—			1,815			23,860
Other liabilities		225,857			211,647			194,861
Total liabilities		22,763,023			18,926,403			16,197,165
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, 117,187,500 shares authorized		1,107			955			954
Paid-in capital		2,338,814			1,497,939			1,495,053
Retained earnings - substantially restricted		810,342			811,063			667,944
Accumulated other comprehensive income		27,359			77,659			143,090
Total stockholders’ equity		3,177,622			2,387,616			2,307,041
Total liabilities and stockholders’ equity	$	25,940,645			21,314,019			18,504,206

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

	Three Months ended										Year ended
(Dollars in thousands, except per share data)	Dec 31, 2021				Sep 30, 2021			Dec 31, 2020			Dec 31, 2021			Dec 31, 2020
Interest Income
Debt securities	$	35,711			30,352			27,388			122,099			99,616
Residential real estate loans		13,728			9,885			11,176			43,300			46,392
Commercial loans		131,158			115,533			121,956			471,061			436,497
Consumer and other loans		12,228			10,971			10,788			44,614			44,559
Total interest income		192,825			166,741			171,308			681,074			627,064
Interest Expense
Deposits		3,708			2,609			3,500			12,135			17,620
Securities sold under agreements to repurchase		467			496			818			2,303			3,601
Federal Home Loan Bank advances		—			—			49			—			733
Other borrowed funds		184			178			173			713			646
Subordinated debentures		844			845			1,010			3,407			4,715
Total interest expense		5,203			4,128			5,550			18,558			27,315
Net Interest Income		187,622			162,613			165,758			662,516			599,749
Provision for credit losses		27,956			725			(1,535	)		23,076			39,765
Net interest income after provision for credit losses		159,666			161,888			167,293			639,440			559,984
Non-Interest Income
Service charges and other fees		17,576			15,154			13,713			59,317			52,503
Miscellaneous loan fees and charges		3,745			2,592			2,293			12,038			7,344
Gain on sale of loans		11,431			13,902			26,214			63,063			99,450
(Loss) gain on sale of debt securities		(693	)		(168	)		124			(638	)		1,139
Other income		2,303			3,335			2,360			11,040			12,431
Total non-interest income		34,362			34,815			44,704			144,820			172,867
Non-Interest Expense
Compensation and employee benefits		77,703			66,364			70,540			270,644			253,047
Occupancy and equipment		11,259			9,412			9,728			39,394			37,673
Advertising and promotions		3,436			3,236			2,797			11,949			10,201
Data processing		7,468			5,135			5,211			23,470			21,132
Other real estate owned and foreclosed assets		34			142			550			236			923
Regulatory assessments and insurance		2,657			2,011			1,034			8,249			4,656
Core deposit intangibles amortization		2,807			2,488			2,612			10,271			10,370
Other expenses		28,683			15,320			18,715			70,609			66,809
Total non-interest expense		134,047			104,108			111,187			434,822			404,811
Income Before Income Taxes		59,981			92,595			100,810			349,438			328,040
Federal and state income tax expense		9,272			16,976			18,950			64,681			61,640
Net Income	$	50,709			75,619			81,860			284,757			266,400

Glacier Bancorp, Inc.
Average Balance Sheets

	Three Months ended
	December 31, 2021									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	$	1,104,232		$	13,728		4.97	%		$	817,150		$	9,885		4.84	%
Commercial loans 1		11,184,129			132,561		4.70	%			9,468,440			116,963		4.90	%
Consumer and other loans		1,082,341			12,228		4.48	%			974,582			10,971		4.47	%
Total loans 2		13,370,702			158,517		4.70	%			11,260,172			137,819		4.86	%
Tax-exempt debt securities 2		1,693,761			15,552		3.67	%			1,548,447			14,711		3.80	%
Taxable debt securities 4		8,709,938			23,555		1.08	%			6,767,418			18,896		1.12	%
Total earning assets		23,774,401			197,624		3.30	%			19,576,037			171,426		3.47	%
Goodwill and intangibles		1,031,002									563,257
Non-earning assets		950,923									803,226
Total assets	$	25,756,326								$	20,942,520
Liabilities
Non-interest bearing deposits	$	7,955,888		$	—		—	%		$	6,505,530		$	—		—	%
NOW and DDA accounts		5,120,484			970		0.08	%			4,261,648			597		0.06	%
Savings accounts		3,133,654			346		0.04	%			2,440,332			146		0.02	%
Money market deposit accounts		3,883,818			1,374		0.14	%			3,041,634			814		0.11	%
Certificate accounts		1,051,787			1,004		0.38	%			928,165			1,036		0.44	%
Total core deposits		21,145,631			3,694		0.07	%			17,177,309			2,593		0.06	%
Wholesale deposits 5		26,104			14		0.21	%			26,117			16		0.24	%
Repurchase agreements		1,015,369			467		0.18	%			988,283			495		0.20	%
Subordinated debentures and other borrowed funds		167,545			1,028		2.43	%			166,151			1,024		2.44	%
Total funding liabilities		22,354,649			5,203		0.09	%			18,357,860			4,128		0.09	%
Other liabilities		199,207									182,573
Total liabilities		22,553,856									18,540,433
Stockholders’ Equity
Common stock		1,107									955
Paid-in capital		2,338,013									1,497,107
Retained earnings		815,726									805,253
Accumulated other comprehensive income		47,624									98,772
Total stockholders’ equity		3,202,470									2,402,087
Total liabilities and stockholders’ equity	$	25,756,326								$	20,942,520
Net interest income (tax-equivalent)				$	192,421								$	167,298
Net interest spread (tax-equivalent)							3.21	%								3.38	%
Net interest margin (tax-equivalent)							3.21	%								3.39	%

______________________________

¹ Includes tax effect of $1.4 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2021 and September 30, 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 $3.2 million and $3.0 million on tax-exempt debt securities income for the three months ended December 31, 2021 and September 30, 2021, respectively.
⁴ Includes tax effect of $225 thousand and $255 thousand on federal income tax credits for the three months ended December 31, 2021 and September 30, 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)

	Three Months ended
	December 31, 2021									December 31, 2020
(Dollars in thousands)	Average Balance			Interest & Dividends			Average Yield/ Rate			Average Balance			Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	1,104,232		$	13,728		4.97	%		$	984,942		$	11,176		4.54	%
Commercial loans 1		11,184,129			132,561		4.70	%			9,535,228			123,327		5.15	%
Consumer and other loans		1,082,341			12,228		4.48	%			951,379			10,788		4.51	%
Total loans 2		13,370,702			158,517		4.70	%			11,471,549			145,291		5.04	%
Tax-exempt debt securities 3		1,693,761			15,552		3.67	%			1,511,725			14,659		3.88	%
Taxable debt securities 4		8,709,938			23,555		1.08	%			3,838,896			15,957		1.66	%
Total earning assets		23,774,401			197,624		3.30	%			16,822,170			175,907		4.16	%
Goodwill and intangibles		1,031,002									570,771
Non-earning assets		950,923									853,518
Total assets	$	25,756,326								$	18,246,459
Liabilities
Non-interest bearing deposits	$	7,955,888		$	—		—	%		$	5,498,744		$	—		—	%
NOW and DDA accounts		5,120,484			970		0.08	%			3,460,923			607		0.07	%
Savings accounts		3,133,654			346		0.04	%			1,935,476			162		0.03	%
Money market deposit accounts		3,883,818			1,374		0.14	%			2,635,653			1,052		0.16	%
Certificate accounts		1,051,787			1,004		0.38	%			984,100			1,629		0.66	%
Total core deposits		21,145,631			3,694		0.07	%			14,514,896			3,450		0.09	%
Wholesale deposits 5		26,104			14		0.21	%			100,329			50		0.20	%
Repurchase agreements		1,015,369			467		0.18	%			969,263			818		0.34	%
FHLB advances		—			—		—	%			6,540			49		2.93	%
Subordinated debentures and other borrowed funds		167,545			1,028		2.43	%			172,936			1,183		2.72	%
Total funding liabilities		22,354,649			5,203		0.09	%			15,763,964			5,550		0.14	%
Other liabilities		199,207									199,771
Total liabilities		22,553,856									15,963,735
Stockholders’ Equity
Common stock		1,107									954
Paid-in capital		2,338,013									1,494,422
Retained earnings		815,726									657,906
Accumulated other comprehensive income		47,624									129,442
Total stockholders’ equity		3,202,470									2,282,724
Total liabilities and stockholders’ equity	$	25,756,326								$	18,246,459
Net interest income (tax-equivalent)				$	192,421								$	170,357
Net interest spread (tax-equivalent)							3.21	%								4.02	%
Net interest margin (tax-equivalent)							3.21	%								4.03	%

______________________________

¹ Includes tax effect of $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2021 and 2020, 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 $3.2 million and $1.8 million on tax-exempt debt securities income for the three months ended December 31, 2021 and 2020, respectively.
⁴ Includes tax effect of $225 thousand and $276 thousand on federal income tax credits for the three months ended December 31, 2021 and 2020, 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, 2021									December 31, 2020
(Dollars in thousands)	Average Balance			Interest & Dividends			Average Yield/ Rate			Average Balance			Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	910,300		$	43,300		4.76	%		$	1,006,001		$	46,392		4.61	%
Commercial loans 1		9,900,056			476,678		4.81	%			9,057,210			441,762		4.88	%
Consumer and other loans		993,082			44,614		4.49	%			948,379			44,559		4.70	%
Total loans 2		11,803,438			564,592		4.78	%			11,011,590			532,713		4.84	%
Tax-exempt debt securities 3		1,584,313			59,713		3.77	%			1,306,640			52,201		4.00	%
Taxable debt securities 4		6,512,202			75,553		1.16	%			2,746,855			59,027		2.15	%
Total earning assets		19,899,953			699,858		3.52	%			15,065,085			643,941		4.27	%
Goodwill and intangibles		683,000									564,603
Non-earning assets		850,742									784,075
Total assets	$	21,433,695								$	16,413,763
Liabilities
Non-interest bearing deposits	$	6,544,843		$	—		—	%		$	4,772,386		$	—		—	%
NOW and DDA accounts		4,325,071			2,737		0.06	%			3,094,675			2,849		0.09	%
Savings accounts		2,493,174			771		0.03	%			1,737,272			742		0.04	%
Money market deposit accounts		3,144,507			3,914		0.12	%			2,356,508			5,077		0.22	%
Certificate accounts		976,894			4,643		0.48	%			986,126			8,568		0.87	%
Total core deposits		17,484,489			12,065		0.07	%			12,946,967			17,236		0.13	%
Wholesale deposits 5		31,103			70		0.22	%			78,283			384		0.49	%
Repurchase agreements		994,968			2,302		0.23	%			783,100			3,601		0.94	%
FHLB advances		—			—		—	%			79,278			733		0.91	%
Subordinated debentures and other borrowed funds		166,386			4,121		2.48	%			172,104			5,361		3.11	%
Total funding liabilities		18,676,946			18,558		0.10	%			14,059,732			27,315		0.19	%
Other liabilities		186,068									162,079
Total liabilities		18,863,014									14,221,811
Stockholders’ Equity
Common stock		993									949
Paid-in capital		1,708,271									1,474,359
Retained earnings		772,300									604,796
Accumulated other comprehensive income		89,117									111,848
Total stockholders’ equity		2,570,681									2,191,952
Total liabilities and stockholders’ equity	$	21,433,695								$	16,413,763
Net interest income (tax-equivalent)				$	681,300								$	616,626
Net interest spread (tax-equivalent)							3.42	%								4.08	%
Net interest margin (tax-equivalent)							3.42	%								4.09	%

______________________________

¹ Includes tax effect of $5.6 million and $5.3 million on tax-exempt municipal loan and lease income for the year months ended December 31, 2021 and 2020, 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 $12.2 million and $10.5 million on tax-exempt debt securities income for the year months ended December 31, 2021 and 2020, respectively.
⁴ Includes tax effect of $990 thousand and $1,064 thousand on federal income tax credits for the year months ended December 31, 2021 and 2020, 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, 2021				Sep 30, 2021				Dec 31, 2020				Sep 30, 2021				Dec 31, 2020
Custom and owner occupied construction	$	263,758			$	170,489			$	157,529			55		%		67		%
Pre-sold and spec construction		257,568				188,668				148,845			37		%		73		%
Total residential construction		521,326				359,157				306,374			45		%		70		%
Land development		185,200				151,640				102,930			22		%		80		%
Consumer land or lots		173,305				143,977				123,747			20		%		40		%
Unimproved land		81,064				68,805				59,500			18		%		36		%
Developed lots for operative builders		41,840				33,487				30,449			25		%		37		%
Commercial lots		99,418				76,382				60,499			30		%		64		%
Other construction		762,970				562,223				555,375			36		%		37		%
Total land, lot, and other construction		1,343,797				1,036,514				932,500			30		%		44		%
Owner occupied		2,645,841				2,069,551				1,945,686			28		%		36		%
Non-owner occupied		3,056,658				2,561,777				2,290,512			19		%		33		%
Total commercial real estate		5,702,499				4,631,328				4,236,198			23		%		35		%
Commercial and industrial		1,463,022				1,407,353				1,850,197			4		%		(21	)	%
Agriculture		751,185				748,548				721,490			—		%		4		%
1st lien		1,393,267				1,159,265				1,228,867			20		%		13		%
Junior lien		34,830				36,942				41,641			(6	)	%		(16	)	%
Total 1-4 family		1,428,097				1,196,207				1,270,508			19		%		12		%
Multifamily residential		545,001				373,022				391,895			46		%		39		%
Home equity lines of credit		761,990				709,828				657,626			7		%		16		%
Other consumer		207,513				198,763				190,186			4		%		9		%
Total consumer		969,503				908,591				847,812			7		%		14		%
States and political subdivisions		615,251				612,882				575,647			—		%		7		%
Other		153,147				114,427				156,647			34		%		(2	)	%
Total loans receivable, including loans held for sale		13,492,828				11,388,029				11,289,268			18		%		20		%
Less loans held for sale 1		(60,797	)			(94,138	)			(166,572	)		(35	)	%		(64	)	%
Total loans receivable	$	13,432,031			$	11,293,891			$	11,122,696			19		%		21		%

______________________________

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, 2021			Sep 30, 2021		Dec 31, 2020		Dec 31, 2021		Dec 31, 2021		Dec 31, 2021
Custom and owner occupied construction	$	237		240		247		237		—		—
Land development		250		31		342		250		—		—
Consumer land or lots		309		186		201		176		133		—
Unimproved land		124		166		294		124		—		—
Commercial lots		—		—		368		—		—		—
Other construction		12,884		276		—		—		12,884		—
Total land, lot and other construction		13,567		659		1,205		550		13,017		—
Owner occupied		3,918		3,323		6,725		3,918		—		—
Non-owner occupied		6,063		2,089		4,796		5,848		215		—
Total commercial real estate		9,981		5,412		11,521		9,766		215		—
Commercial and Industrial		3,066		5,621		6,689		2,517		549		—
Agriculture		29,151		32,712		6,313		26,323		2,828		—
1st lien		2,870		3,178		5,353		2,612		258		—
Junior lien		136		166		301		136		—		—
Total 1-4 family		3,006		3,344		5,654		2,748		258		—
Multifamily residential		6,548		—		—		6,548		—		—
Home equity lines of credit		1,563		2,393		2,939		1,522		41		—
Other consumer		460		539		572		321		121		18
Total consumer		2,023		2,932		3,511		1,843		162		18
Other		112		259		293		—		112		—
Total	$	67,691		51,179		35,433		50,532		17,141		18

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, 2021			Sep 30, 2021			Dec 31, 2020			Sep 30, 2021				Dec 31, 2020
Custom and owner occupied construction	$	1,243		$	892		$	788		39		%		58		%
Pre-sold and spec construction		443			325			—		36		%		n/m
Total residential construction		1,686			1,217			788		39		%		114		%
Land development		—			276			202		(100	)	%		(100	)	%
Consumer land or lots		149			325			71		(54	)	%		110		%
Unimproved land		305			181			357		69		%		(15	)	%
Developed lots for operative builders		—			59			306		(100	)	%		(100	)	%
Other construction		30,788			12,884			—		139		%		n/m
Total land, lot and other construction		31,242			13,725			936		128		%		3,238		%
Owner occupied		1,739			1,933			3,432		(10	)	%		(49	)	%
Non-owner occupied		1,558			443			149		252		%		946		%
Total commercial real estate		3,297			2,376			3,581		39		%		(8	)	%
Commercial and industrial		4,732			1,581			1,814		199		%		161		%
Agriculture		459			1,032			1,553		(56	)	%		(70	)	%
1st lien		2,197			350			6,677		528		%		(67	)	%
Junior lien		87			167			55		(48	)	%		58		%
Total 1-4 family		2,284			517			6,732		342		%		(66	)	%
Home equity lines of credit		1,994			3,023			2,840		(34	)	%		(30	)	%
Other consumer		1,681			1,361			1,054		24		%		59		%
Total consumer		3,675			4,384			3,894		(16	)	%		(6	)	%
States and political subdivisions		1,733			—			2,358		n/m				(27	)	%
Other		1,458			1,170			1,065		25		%		37		%
Total	$	50,566		$	26,002		$	22,721		94		%		123		%

______________________________

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, 2021				Sep 30, 2021			Dec 31, 2020			Dec 31, 2021		Dec 31, 2021
Custom and owner occupied construction	$	—			—			(9	)		—		—
Pre-sold and spec construction		(15	)		(12	)		(24	)		—		15
Total residential construction		(15	)		(12	)		(33	)		—		15
Land development		(233	)		(163	)		(106	)		—		233
Consumer land or lots		(165	)		(164	)		(221	)		3		168
Unimproved land		(241	)		(241	)		(489	)		—		241
Commercial lots		—			—			(55	)		—		—
Total land, lot and other construction		(639	)		(568	)		(871	)		3		642
Owner occupied		(423	)		(410	)		(168	)		117		540
Non-owner occupied		(357	)		(356	)		3,030			148		505
Total commercial real estate		(780	)		(766	)		2,862			265		1,045
Commercial and industrial		41			(87	)		1,533			988		947
Agriculture		(20	)		—			337			12		32
1st lien		(331	)		(250	)		69			42		373
Junior lien		(650	)		(511	)		(211	)		—		650
Total 1-4 family		(981	)		(761	)		(142	)		42		1,023
Multifamily residential		(40	)		(40	)		(244	)		—		40
Home equity lines of credit		(621	)		(601	)		101			41		662
Other consumer		236			145			307			532		296
Total consumer		(385	)		(456	)		408			573		958
Other		5,148			4,403			3,803			9,711		4,563
Total	$	2,329			1,713			7,653			11,594		9,265

Visit our website at www.glacierbancorp.com

FAQ

What was Glacier Bancorp's net income for Q4 2021?

Glacier Bancorp reported a net income of $50.7 million for Q4 2021.

How much did Glacier Bancorp increase its net interest income in Q4 2021?

Net interest income increased by 19% to $184 million in Q4 2021.

What is Glacier Bancorp's dividend policy?

Glacier Bancorp declared a quarterly dividend of $0.32 per share and a special dividend of $0.10 per share.

What were the total core deposits for Glacier Bancorp at the end of 2021?

Total core deposits reached $21.3 billion, reflecting a 22% increase over the year.

What were the diluted earnings per share for Glacier Bancorp in Q4 2021?

The diluted earnings per share decreased to $0.46 in Q4 2021.