Glacier Bancorp, Inc. Announces Results for the Quarter Ended June 30, 2020

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Glacier Bancorp (GBCI) reported a 21% increase in net income for Q2 2020, reaching $63.4 million, with diluted earnings per share (EPS) rising to $0.66. The company funded 15,291 PPP loans totaling $1.427 billion, resulting in significant loan and deposit growth. Core deposits increased by 16%, while total assets climbed to $16.9 billion. Despite the pandemic, the company transitioned to the S&P MidCap 400 index and declared a quarterly dividend of $0.29 per share. However, EPS for the first half of the year dropped 5% compared to 2019.

Positive

Net income for Q2 2020 increased by $11.1 million, or 21%, compared to the prior year.
Diluted EPS rose to $0.66, an 8% increase from the prior year.
Funding of over $1.4 billion in PPP loans, with substantial loan portfolio growth.
Core deposits increased by $1.818 billion, or 16% in the current quarter.
Transitioned to S&P MidCap 400 index, reflecting improved market position.

Negative

Diluted EPS for the first half of 2020 decreased by 5% compared to the same period in 2019.
Total non-performing assets increased by 17% from the prior quarter.

07/23/2020 - 04:30 PM

2nd Quarter 2020 Highlights:

Net income of $63.4 million for the current quarter, an increase of $11.1 million, or 21 percent, over the prior year second quarter net income of $52.4 million.
Current quarter diluted earnings per share of $0.66, an increase of 8 percent from the prior year second quarter diluted earnings per share of $0.61.
The Company originated U.S. Small Business Administration (“SBA”) Payroll Protection Program (“PPP”) loans for businesses in its communities. The Company funded 15,291 PPP loans in the amount of $1.427 billion.
The loan portfolio organically increased $1.365 billion, or 14 percent, in the current quarter and increased $1.545 billion, or 17 percent, from the prior year second quarter.
Core deposits increased $1.818 billion, or 16 percent, during the current quarter, with non-interest bearing deposit growth of $1.168 billion, or 30 percent.
Debt security income of $25.8 million increased $4.8 million, or 23 percent, over the prior quarter and increased $3.9 million, or 18 percent, over the prior year second quarter.
Gain on sale of loans of $25.9 million, increased $14.0 million, or 118 percent, over the prior quarter and increased $18.1 million, or 233 percent, compared to the prior year second quarter.
Interest expense of $7.2 million decreased $1.3 million, or 15 percent, over the prior quarter and decreased $4.9 million, or 41 percent, compared to the prior year second quarter.
Non-performing assets as a percentage of subsidiary assets was 0.27 percent, which compared to 0.26 percent in the prior quarter and 0.41 percent in the prior year second quarter.
Early stage delinquencies (accruing 30-89 days past due) as a percentage of loans in the current quarter was 0.22 percent, which compared to 0.41 percent in the prior quarter and 0.43 percent in the prior year second quarter.
During the current quarter, S&P Dow Jones Indices selected the Company to transition from the S&P SmallCap 600® to the S&P MidCap 400®.
Declared a quarterly dividend of $0.29 per share. The Company has declared 141 consecutive quarterly dividends and has increased the dividend 45 times.

First Half 2020 Highlights:

Net income of $106.8 million for the first half of 2020, an increase of $5.3 million, or 5 percent, over the first half of 2019 net income of $101.5 million.
Diluted earnings per share of $1.13, a decrease of 5 percent from the prior year first six months diluted earnings per share of $1.19.
The loan portfolio organically grew $1.489 billion, or 16 percent, during the first six months of 2020.
Core deposits organically increased $2.0 billion, or 19 percent, during the first half of 2020, with non-interest bearings deposit growth of $1.2 billion, or 33 percent.
Gain on sale of loans of $37.7 million, increased $24.2 million, or 178 percent, compared to the prior year first half.
Dividends declared of $0.58 per share, an increase of $0.05 per share, or 9 percent, over the prior year first six months dividends of $0.53.
On February 29, 2020, the Company completed the acquisition of State Bank Corp., the parent company of State Bank of Arizona, a community bank based in Lake Havasu City, Arizona with total assets of $744 million.

Financial Highlights

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	At or for the Three Months ended		At or for the Six Months ended
(Dollars in thousands, except per share and market data)	Jun 30, 2020		Mar 31, 2020		Jun 30, 2019		Jun 30, 2020		Jun 30, 2019
Operating results
45%; width:45%; min-width:45%;">Net income	1%; width:1%; min-width:1%;">$	9%; width:9%; min-width:9%;">63,444	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">43,339	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">52,392	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">106,783	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">101,524	1%; width:1%; min-width:1%;">
Basic earnings per share	$	0.67			0.46			0.61			1.13			1.19
Diluted earnings per share	$	0.66			0.46			0.61			1.13			1.19
Dividends declared per share ¹	$	0.29			0.29			0.27			0.58			0.53
Market value per share
Closing	$	35.29			34.01			40.55			35.29			40.55
High	$	46.54			46.10			43.44			46.54			45.47
Low	$	30.30			26.66			38.65			26.66			37.58
Selected ratios and other data
Number of common stock shares outstanding	95,409,061		95,408,274		86,637,394		95,409,061		86,637,394
Average outstanding shares - basic	95,405,493		93,287,670		85,826,290		94,346,582		85,191,658
Average outstanding shares - diluted	95,430,403		93,359,792		85,858,286		94,395,930		85,241,238
Return on average assets (annualized)	1.57	%		1.25	%		1.69	%		1.42	%		1.68	%
Return on average equity (annualized)	11.68	%		8.52	%		12.82	%		10.15	%		12.91	%
Efficiency ratio	49.29	%		52.55	%		54.50	%		50.81	%		54.93	%
Dividend payout ratio	43.28	%		63.04	%		44.26	%		51.33	%		44.54	%
Loan to deposit ratio	86.45	%		88.10	%		90.27	%		86.45	%		90.27	%
Number of full time equivalent employees	2,954		2,955		2,703		2,954		2,703
Number of locations	192		192		175		192		175
Number of ATMs	251		247		228		251		228

KALISPELL, Mont., July 23, 2020 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $63.4 million for the current quarter, an increase of $11.1 million, or 21 percent, from the $52.4 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.66 per share, an increase of 8 percent from the prior year second quarter diluted earnings per share of $0.61. Included in the current quarter was $3.7 million of acquisition-related expenses. “The Glacier team delivered outstanding results despite the continuing pandemic and the resulting challenging environment. The team did an exceptional job servicing our customers and communities by making over 15,000 Paycheck Protection Program loans for over $1.5 billion,” said Randy Chesler, President and Chief Executive Officer. “We remain confident that our significant liquidity, high quality loan portfolio, strong balance sheet and solid core business, positions us to successfully respond to a full range of future possible economic conditions.”

Net income for the six months ended June 30, 2020 was $106.8 million, an increase of $5.3 million, or 5 percent, from the $101.5 million net income from the first six months of the prior year. Diluted earnings per share for the first half of the current year was $1.13 per share, a decrease of 5 percent, from the diluted earnings per share of $1.19 for the same period last year.

The Company continues to navigate through the coronavirus disease of 2019 (“COVID-19”) pandemic to ensure the safety of its employees and customers along with monitoring credit quality and protecting shareholder value. The Company’s pandemic team remains flexible in responding to the changing conditions in all the markets that it serves.

In order to meet the needs of customers impacted by the pandemic, the Company has contacted customers to assess their needs and provide funding, flexible repayment options or modifications as necessary. During the current quarter, the Company modified 3,054 loans in the amount of $1.515 billion primarily with short-term payment deferrals under six months.

In addition, the Company originated SBA PPP loans for businesses in its communities. The Company funded 15,291 PPP loans in the amount of $1.427 billion during the current quarter. These loans provided an additional $7.3 million of interest income (including net deferred fees and costs) during the current quarter and $8.4 million of deferred compensation costs for a total increase in income of $15.7 million ($11.7 million net of tax).

During the current quarter, S&P Dow Jones Indices selected the Company to transition from the S&P SmallCap 600® to the S&P MidCap 400® effective prior to the opening trading on Monday, June 22, 2020. The S&P MidCap 400® index consists of 400 companies that are chosen with regard to market capitalization, liquidity and industry representation.

On February 29, 2020, the Company completed the acquisition of State Bank Corp., the parent company of State Bank of Arizona, a community bank based in Lake Havasu City, Arizona (collectively, “SBAZ”). SBAZ provides banking services to individuals and businesses in Arizona with ten banking offices located in Bullhead City, Cottonwood, Kingman, Lake Havasu City, Phoenix, Prescott Valley and Prescott. Upon closing of the transaction, SBAZ merged into the Company's Foothills Bank division, which expanded the Company's footprint in Arizona to cover all major markets in the state and be a leading community bank in Arizona.

The Company’s results of operations and financial condition include the SBAZ acquisition and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:

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		State Bank
	(Dollars in thousands)	February 29, 2020
33%; width:33%; min-width:33%;">	23%; width:23%; min-width:23%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">	33%; width:33%; min-width:33%;">
33%; width:33%; min-width:33%;">	23%; width:23%; min-width:23%;">Total assets	1%; width:1%; min-width:1%;">$	10%; width:10%; min-width:10%;">744,109	33%; width:33%; min-width:33%;">
	Debt securities	142,174
	Loans receivable	451,702
	Non-interest bearing deposits	141,620
	Interest bearing deposits	461,669
	Borrowings	10,904

Asset Summary

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									$ Change from
(Dollars in thousands)	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019
23%; width:23%; min-width:23%;">Cash and cash equivalents	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">547,610	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">273,441	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">330,961	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">231,209	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">274,169	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">216,649	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">316,401	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">
Debt securities, available-for-sale	3,533,950				3,429,890				2,575,252				2,470,634				104,060				958,698				1,063,316
Debt securities, held-to-maturity	203,275				203,814				224,611				252,097				(539	)			(21,336	)			(48,822	)
Total debt securities	3,737,225				3,633,704				2,799,863				2,722,731				103,521				937,362				1,014,494
Loans receivable
Residential real estate	903,198				957,830				926,388				920,715				(54,632	)			(23,190	)			(17,517	)
Commercial real estate	6,047,692				5,928,303				5,579,307				4,959,863				119,389				468,385				1,087,829
Other commercial	3,547,249				2,239,878				2,094,254				2,076,605				1,307,371				1,452,995				1,470,644
Home equity	654,392				652,942				617,201				596,041				1,450				37,191				58,351
Other consumer	300,847				309,253				295,660				288,553				(8,406	)			5,187				12,294
Loans receivable	11,453,378				10,088,206				9,512,810				8,841,777				1,365,172				1,940,568				2,611,601
Allowance for credit losses	(162,509	)			(150,190	)			(124,490	)			(129,054	)			(12,319	)			(38,019	)			(33,455	)
Loans receivable, net	11,290,869				9,938,016				9,388,320				8,712,723				1,352,853				1,902,549				2,578,146
Other assets	1,330,944				1,313,223				1,164,855				1,009,698				17,721				166,089				321,246
Total assets	$	16,906,648				15,158,384				13,683,999				12,676,361				1,748,264				3,222,649				4,230,287

Total debt securities of $3.737 billion at June 30, 2020 increased $104 million, or 3 percent, during the current quarter and increased $1.014 billion, or 37 percent, from the prior year second quarter. Debt securities represented 22 percent of total assets at June 30, 2020 compared to 20 percent at December 31, 2019 and 21 percent of total assets at June 30, 2019.

Excluding $1.427 billion of the PPP loans, the loan portfolio of $11.453 billion decreased $61.6 million, or 61 basis points, during the current quarter. Excluding the PPP loans, the notable changes during the current quarter included other commercial loans which decreased $119 million, or 5 percent, and commercial real estate which increased $119 million or 2 percent. Excluding the PPP loans, the current year SBAZ acquisition and the prior year acquisition of Heritage Bank of Nevada, the loan portfolio increased $118 million, or 1 percent, since the prior year second quarter with the largest increase in commercial real estate loans which increased $204 million, or 4 percent.

Credit Quality Summary

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	At or for the Six Months ended		At or for the Three Months ended		At or for the Year ended		At or for the Six Months ended
(Dollars in thousands)	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019
Allowance for credit losses
48%; width:48%; min-width:48%;">Balance at beginning of period	1%; width:1%; min-width:1%;">$	11%; width:11%; min-width:11%;">124,490	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	11%; width:11%; min-width:11%;">124,490	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	11%; width:11%; min-width:11%;">131,239	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	11%; width:11%; min-width:11%;">131,239	1%; width:1%; min-width:1%;">
Impact of adopting CECL	3,720			3,720			—			—
Acquisitions	49			49			—			—
Credit loss expense	36,296			22,744			57			57
Charge-offs	(5,235	)		(2,567	)		(15,178	)		(6,200	)
Recoveries	3,189			1,754			8,372			3,958
Balance at end of period	$	162,509			150,190			124,490			129,054
Other real estate owned	$	4,743			4,748			5,142			7,281
Accruing loans 90 days or more past due	6,071			6,624			1,412			3,463
Non-accrual loans	35,157			28,006			30,883			41,195
Total non-performing assets	$	45,971			39,378			37,437			51,939
Non-performing assets as a percentage of subsidiary assets	0.27	%		0.26	%		0.27	%		0.41	%
Allowance for credit losses as a percentage of non-performing loans	394	%		434	%		385	%		289	%
Allowance for credit losses as a percentage of total loans	1.42	%		1.49	%		1.31	%		1.46	%
Net charge-offs as a percentage of total loans	0.02	%		0.01	%		0.07	%		0.03	%
Accruing loans 30-89 days past due	$	25,225			41,375			23,192			37,937
Accruing troubled debt restructurings	$	41,759			44,371			34,055			25,019
Non-accrual troubled debt restructurings	$	8,204			6,911			3,346			6,041
U.S. government guarantees included in non-performing assets	$	3,305			3.204			1,786			2,785

Non-performing assets of $46.0 million at June 30, 2020 increased $6.6 million, or 17 percent, over the prior quarter and decreased $6.0 million, or 11 percent, over the prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2020 was 0.27 percent. Excluding the government guaranteed PPP loans, the non-performing assets as a percentage of subsidiary assets at June 30, 2020 was 0.30 percent at June 30, 2020, an increase of 4 basis points from the prior quarter, and a decrease of 11 basis points from the prior year second quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $25.2 million at June 30, 2020 decreased $16.2 million from the prior quarter and decreased $12.7 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2020 was 0.22 percent, which was a decrease of 19 basis points from prior quarter and a 21 basis points decrease from prior year second quarter.

The current quarter credit loss expense was $13.6 million, a decrease of $9.2 million from the prior quarter credit loss expense of $22.7 million. The increase in the ACL during the first six months was primarily attributable to the Company recognizing $37.6 million of credit loss expense related to COVID-19 and an additional $4.8 million of credit loss expense related to the SBAZ acquisition. The allowance for credit losses (“ACL”) as a percentage of total loans outstanding at June 30, 2020 was 1.42 percent, which was a 7 basis points decrease compared to the prior quarter. The decrease was the result of originating $1.427 billion of government guaranteed PPP loans for which no ACL was recorded. Excluding the PPP loans, the ACL as percentage of loans was 1.62 percent, a 13 basis points increase over the prior quarter and was primarily the result of changes in the economic forecast related to COVID-19.

Credit Quality Trends and Credit Loss Expense

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(Dollars in thousands)	Credit Loss Expense		Net Charge-Offs		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
39%; width:39%; min-width:39%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">	1%; width:1%; min-width:1%;">
39%; width:39%; min-width:39%;">Second quarter 2020	1%; width:1%; min-width:1%;">$	10%; width:10%; min-width:10%;">13,552	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	10%; width:10%; min-width:10%;">1,233	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">1.42	1%; width:1%; min-width:1%;">%	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">0.22	1%; width:1%; min-width:1%;">%	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">0.27	1%; width:1%; min-width:1%;">%
First quarter 2020	22,744			813			1.49	%		0.41	%		0.26	%
Fourth quarter 2019	—			1,045			1.31	%		0.24	%		0.27	%
Third quarter 2019	—			3,519			1.32	%		0.31	%		0.40	%
Second quarter 2019	—			732			1.46	%		0.43	%		0.41	%
First quarter 2019	57			1,510			1.56	%		0.44	%		0.42	%
Fourth quarter 2018	1,246			2,542			1.58	%		0.41	%		0.47	%
Third quarter 2018	3,194			2,223			1.63	%		0.31	%		0.61	%

Net charge-offs for the current quarter were $1.2 million compared to $813 thousand for the prior quarter and $732 thousand from the same quarter last year. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the credit loss expense.

COVID-19 Total Loan Modifications and PPP Loans

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	June 30, 2020
(Dollars in thousands)	Number of Loan Modifications		Amount of Loan Modifications		Number of PPP Loans		Amount of PPP Loans		Loans Receivable, Net of PPP Loans		Loan Modifications (Amount) as a Percent of Loans Receivable, Net of PPP Loans		PPP Loans (Amount) as a Percent of Loans Receivable, Net of PPP Loans
21%; width:21%; min-width:21%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">
21%; width:21%; min-width:21%;">Residential real estate	9%; width:9%; min-width:9%;">227	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	9%; width:9%; min-width:9%;">66,395	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">—	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	9%; width:9%; min-width:9%;">—	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	9%; width:9%; min-width:9%;">903,198	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">7.35	1%; width:1%; min-width:1%;">%	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">—	1%; width:1%; min-width:1%;">%
Commercial real estate and other commercial
Real estate rental and leasing	607			587,609			1,072			62,382			3,244,073			18.11	%		1.92	%
Accommodation and food services	413			395,882			1,373			144,036			644,648			61.41	%		22.34	%
Healthcare	264			126,808			1,752			263,259			792,272			16.01	%		33.23	%
Manufacturing	134			49,338			728			69,370			202,151			24.41	%		34.32	%
Retail and wholesale trade	159			46,623			1,532			159,433			476,841			9.78	%		33.44	%
Construction	122			38,751			2,045			193,606			765,539			5.06	%		25.29	%
Other	580			192,060			6,789			534,660			2,042,671			9.40	%		26.17	%
Home equity and other consumer	548			11,326			—			—			955,239			1.19	%		—	%
Total	3,054			$	1,514,792			15,291			$	1,426,746			$	10,026,632			15.11	%		14.23	%

In response to COVID-19, the Company modified 3,054 loans in the amount of $1.515 billion during the current quarter. These modifications were primarily short-term payment deferrals under six months.

The PPP loan originations generated $53.6 million of SBA processing fees, or an average of 3.75 percent, and $8.4 million of deferred compensation costs for total net deferred fees of $45.2 million. Net deferred fees remaining on the PPP loans at June 30, 2020 were $40.6 million, which will be recognized into interest income over the life of the loans, generally two years, or when the loans are forgiven by the SBA.

COVID-19 Higher Risk Industries - Enhanced Monitoring

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	June 30, 2020
(Dollars in thousands)	Loans Receivable, Net of PPP Loans		Percent of Total Loans Receivable, Net of PPP Loans		Average Loan-To- Value on Loans Receivable, Net of PPP Loans		Amount of Loan Modifications		Loan Modifications as a Percent of Loans Receivable, Net of PPP Loans		Amount of PPP Loans
32%; width:32%; min-width:32%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">	1%; width:1%; min-width:1%;">
32%; width:32%; min-width:32%;">Hotel and motel	1%; width:1%; min-width:1%;">$	9%; width:9%; min-width:9%;">421,569	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">4.20	1%; width:1%; min-width:1%;">%	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">50.75	1%; width:1%; min-width:1%;">%	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	9%; width:9%; min-width:9%;">300,747	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">71.34	1%; width:1%; min-width:1%;">%	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	9%; width:9%; min-width:9%;">36,933	1%; width:1%; min-width:1%;">
Restaurant	150,515			1.50	%		68.97	%		76,632			50.91	%		93,853
Travel and tourism	20,758			0.21	%		52.66	%		7,845			37.79	%		9,969
Gaming	15,118			0.15	%		72.13	%		9,214			60.95	%		1,084
Oil and gas	22,748			0.23	%		57.61	%		6,013			26.43	%		24,315
Total	$	630,708			6.29	%				$	400,451			63.49	%		$	166,154

Excluding the PPP loans, the Company has $631 million, or 6 percent, of its loan portfolio with direct exposure to industries for which it has identified as higher risk, requiring enhanced monitoring. The Company modified 63 percent of the higher risk loans which accounted for 26 percent of the total loan modifications during the current quarter. The Company also originated $166 million in PPP loans to support these customers which was 12 percent of the total PPP loans originated during the current quarter. Although there is limited exposure, the Company is conducting enhanced portfolio reviews and monitoring for potential credit deterioration related to COVID-19.

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

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									$ Change from
(Dollars in thousands)	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019
Deposits
20%; width:20%; min-width:20%;">Non-interest bearing deposits	1%; width:1%; min-width:1%;">$	9%; width:9%; min-width:9%;">5,043,704	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">3,875,848	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">3,696,627	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">3,265,077	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">1,167,856	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">1,347,077	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">1,778,627	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">
NOW and DDA accounts	3,113,863			2,860,563			2,645,404			2,487,806			253,300				468,459				626,057
Savings accounts	1,756,503			1,578,062			1,485,487			1,412,046			178,441				271,016				344,457
Money market deposit accounts	2,403,641			2,155,203			1,937,141			1,647,372			248,438				466,500				756,269
Certificate accounts	995,536			1,025,237			958,501			897,625			(29,701	)			37,035				97,911
Core deposits, total	13,313,247			11,494,913			10,723,160			9,709,926			1,818,334				2,590,087				3,603,321
Wholesale deposits	68,285			62,924			53,297			144,949			5,361				14,988				(76,664	)
Deposits, total	13,381,532			11,557,837			10,776,457			9,854,875			1,823,695				2,605,075				3,526,657
Repurchase agreements	881,227			580,335			569,824			494,651			300,892				311,403				386,576
Federal Home Loan Bank advances	37,963			513,055			38,611			319,996			(475,092	)			(648	)			(282,033	)
Other borrowed funds	32,546			32,499			28,820			14,765			47				3,726				17,781
Subordinated debentures	139,917			139,916			139,914			139,912			1				3				5
Other liabilities	229,748			198,098			169,640			164,786			31,650				60,108				64,962
Total liabilities	$	14,702,933			13,021,740			11,723,266			10,988,985			1,681,193				2,979,667				3,713,948

Core deposits of $13.313 billion as of June 30, 2020 increased $1.818 billion or 16 percent, from the prior quarter and was primarily the result of the PPP loan proceeds deposited by customers, increased customer savings rate, and federal stimulus deposits. Excluding current and prior year acquisitions, core deposits increased $2.278 billion, or 23 percent, from the prior year second quarter, with non-interest bearing deposits increasing $1.341 billion, or 41 percent. Non-interest bearing deposits were 38 percent of total core deposits at June 30, 2020 compared to 34 percent of total core deposits at June 30, 2019.

Federal Home Loan Bank (“FHLB”) advances of $38.0 million at June 30, 2020 decreased $475 million from the prior quarter and decreased $282 million from the prior year second quarter. These decreases were the result of the significant increase in core deposits that more than funded the loans and debt security growth. FHLB advances will continue to fluctuate as necessary for balance sheet growth and to supplement liquidity needs of the Company.

Stockholders’ Equity Summary

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									$ Change from
(Dollars in thousands, except per share data)	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019
30%; width:30%; min-width:30%;">Common equity	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">2,073,806	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">2,036,920	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">1,920,507	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">1,643,928	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">36,886	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">153,299	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">429,878	1%; width:1%; min-width:1%;">
Accumulated other comprehensive income	129,909			99,724			40,226			43,448			30,185			89,683			86,461
Total stockholders’ equity	2,203,715			2,136,644			1,960,733			1,687,376			67,071			242,982			516,339
Goodwill and core deposit intangible, net	(574,088	)		(576,701	)		(519,704	)		(385,533	)		2,613			(54,384	)		(188,555	)
Tangible stockholders’ equity	$	1,629,627			1,559,943			1,441,029			1,301,843			69,684			188,598			327,784
Stockholders’ equity to total assets	13.03	%		14.10	%		14.33	%		13.31	%
Tangible stockholders’ equity to total tangible assets	9.98	%		10.70	%		10.95	%		10.59	%
Book value per common share	$	23.10			22.39			21.25			19.48			0.71			1.85			3.62
Tangible book value per common share	$	17.08			16.35			15.61			15.03			0.73			1.47			2.05

Tangible stockholders’ equity of $1.630 billion at June 30, 2020 increased $70 million, or 4 percent, from the prior quarter and was primarily the result of earnings retention and an increase in other comprehensive income. Tangible stockholders’ equity increased $328 million over the prior year second quarter which was the result of $342 million of Company stock issued for the acquisitions of SBAZ and Heritage Bank of Nevada, an increase in other comprehensive income and earnings retention. These increases more than offset the increase in goodwill and core deposit intangible associated with the acquisitions. The current quarter decrease in both the stockholder’s equity to total assets ratio and the tangible stockholders’ equity to total tangible assets ratio was the result of adding $1.427 billion in the PPP loans. Both ratios would have increased if the PPP loans were excluded from total assets. Tangible book value per common share of $17.08 at current quarter end increased $0.73 per share from the prior quarter and increased $2.05 per share from a year ago.

Cash Dividends
On June 24, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.29 per share. The dividend was payable July 16, 2020 to shareholders of record on July 7, 2020. The dividend was the 141st consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended June 30, 2020
Compared to March 31, 2020 and June 30, 2019

Income Summary

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	Three Months ended		$ Change from
(Dollars in thousands)	Jun 30, 2020		Mar 31, 2020		Jun 30, 2019		Mar 31, 2020		Jun 30, 2019
Net interest income
45%; width:45%; min-width:45%;">Interest income	1%; width:1%; min-width:1%;">$	9%; width:9%; min-width:9%;">155,404	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">142,865	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">132,385	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">12,539	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">23,019	1%; width:1%; min-width:1%;">
Interest expense	7,185			8,496			12,089			(1,311	)		(4,904	)
Total net interest income	148,219			134,369			120,296			13,850			27,923
Non-interest income
Service charges and other fees	11,366			14,020			20,025			(2,654	)		(8,659	)
Miscellaneous loan fees and charges	1,682			1,285			1,192			397			490
Gain on sale of loans	25,858			11,862			7,762			13,996			18,096
Gain on sale of investments	128			863			134			(735	)		(6	)
Other income	2,190			5,242			1,721			(3,052	)		469
Total non-interest income	41,224			33,272			30,834			7,952			10,390
Total income	189,443			167,641			151,130			21,802			38,313
Net interest margin (tax-equivalent)	4.12	%		4.36	%		4.33	%

Net Interest Income
The current quarter net interest income of $148 million increased $13.9 million, or 10 percent, over the prior quarter and increased $27.9 million, or 23 percent, from the prior year second quarter. The current quarter interest income of $155 million increased $12.5 million, or 9 percent, over the prior quarter which was driven by an increase debt security income and an increase in income from the PPP loans. The current quarter interest income increased $23.0 million, or 17 percent, over prior year second quarter and was due to an increase in income from commercial loans and an increase in income on debt securities.

The current quarter interest expense of $7.2 million decreased $1.3 million, or 15 percent, over the prior quarter primarily as result of a decrease in deposit and borrowing interest rates. Current quarter interest expense decreased $4.9 million, or 41 percent, over prior year second quarter which was due to the decrease in higher cost FHLB advances. During the current quarter, the total cost of funding (including non-interest bearing deposits) declined 8 basis points to 21 basis points compared to 29 basis points for the prior quarter primarily as a result of a decrease in rates on both deposits and borrowings. The total cost of funding decreased 24 basis points from the prior year second quarter of 45 basis points and was attributable to a decrease in rates and a shift from higher cost borrowings to low cost deposits.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.12 percent compared to 4.36 percent in the prior quarter. The core net interest margin, excluding 3 basis points of discount accretion, 1 basis point of non-accrual interest income reversals, and 11 basis points of income from the PPP loans was 4.21 percent compared to 4.30 in the prior quarter and 4.27 percent in the prior year second quarter. The Company experienced a 9 basis points decrease in the core net interest margin during the current quarter from decreased yields on loans that more than offset the increase in yields on debt securities and the decrease in the cost of funding. The core net interest margin decreased 6 basis points from the prior year second quarter primarily from a decrease in earning asset yields, primarily loan yields, that were more than the decrease in funding costs. “The 6 basis points reduction in the cost of core deposit funding is a tribute to the Bank divisions focus on increasing non-interest bearing deposits, while also reducing the cost of interest bearing deposits,” said Ron Copher, Chief Financial Officer. “The reduction in rates paid on repurchase agreements and the current quarter reduction in higher cost FHLB advances contributed to the 8 basis points reduction in the total cost of funding.”

Non-interest Income
Non-interest income for the current quarter totaled $41.2 million which was an increase of $8.0 million, or 24 percent, over the prior quarter and an increase of $10.4 million, or 34 percent, over the same quarter last year. Service charges and other fees of $11.4 million for the current quarter decreased $2.7 million, or 19 percent, from the prior quarter as a result of decreased overdraft activity as customers received federal stimulus funds and had decreased activity during the second quarter of 2020. Service charges and other fees decreased $8.7 million from the prior year second quarter due to the decrease in overdraft activity and the decrease in interchange fees as a result of the Durbin Amendment. As of July 1, 2019, the Company became subject to the Durbin Amendment which established limits on the amount of interchange fees that can be charged to merchants for debit card processing. Gain on the sale of loans of $25.9 million for the current quarter increased $14.0 million, or 118 percent, compared to the prior quarter and increased $18.1 million, or 233 percent, from the prior year second quarter due to the significant increase in refinance activity driven by the decrease in interest rates. Other income of $2.2 million decreased $3.1 million, or 58 percent, from the prior quarter primarily as a result of a $2.4 million gain on the sale of a former branch building in the prior quarter.

Non-interest Expense Summary

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	Three Months ended		$ Change from
(Dollars in thousands)	Jun 30, 2020		Mar 31, 2020		Jun 30, 2019		Mar 31, 2020		Jun 30, 2019
40%; width:40%; min-width:40%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">	1%; width:1%; min-width:1%;">
40%; width:40%; min-width:40%;">Compensation and employee benefits	1%; width:1%; min-width:1%;">$	10%; width:10%; min-width:10%;">57,981	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">59,660	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">51,973	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">(1,679	1%; width:1%; min-width:1%;">)	1%; width:1%; min-width:1%;">	10%; width:10%; min-width:10%;">6,008	1%; width:1%; min-width:1%;">
Occupancy and equipment	9,357			9,219			8,180			138			1,177
Advertising and promotions	2,138			2,487			2,767			(349	)		(629	)
Data processing	5,042			5,282			4,062			(240	)		980
Other real estate owned	75			112			191			(37	)		(116	)
Regulatory assessments and insurance	1,037			1,090			1,848			(53	)		(811	)
Core deposit intangibles amortization	2,613			2,533			1,865			80			748
Other expenses	19,898			11,545			15,284			8,353			4,614

Total non-interest expense	$	98,141			91,928			86,170			6,213			11,971

Total non-interest expense of $98.1 million for the current quarter increased $6.2 million, or 7 percent, over the prior quarter and increased $12.0 million, or 14 percent, over the prior year second quarter. Compensation and employee benefits decreased by $1.7 million, or 3 percent, from the prior quarter and included a decrease of $8.4 million from deferring compensation on originating the PPP loans with offsetting increases in commission expense and increases in compensation expense as result of increased employees from the SBAZ acquisition. Compensation and employee benefits increased $6.0 million, or 12 percent, from the prior year second quarter primarily due to an increased number of employees driven by acquisitions and organic growth which more than offset the impact from originating the PPP loans. Occupancy and equipment expense increased $1.2 million, or 14 percent, over the prior year second quarter primarily as a result of increased costs from acquisitions. Data processing expense increased $980 thousand, or 24 percent, over the prior year second quarter as a result of the current and prior year acquisitions along with general cost increases. Regulatory assessment and insurance decreased $811 thousand from the prior year second quarter primarily due to an accrual adjustment for the State of Montana regulatory semi-annual assessment which was waived for the first half of 2020. Other expenses of $19.9 million, increased $8.4 million, or 72 percent, from the prior quarter and was largely due to a $6.9 million increase in expense related to unfunded loan commitments. In the current quarter, there was a $3.4 million expense related to unfunded loan commitments compared to the prior quarter which had a $3.5 million reversal of expense related to unfunded loan commitments. The current quarter unfunded loan commitment expense reflects changes in the economic forecast related to COVID-19. Other expenses increased $4.6 million, or 30 percent, from the prior year second quarter and was due to the increase in expense related to unfunded loan commitments and $1.9 million increase in acquisition-related expenses. Other expenses included acquisition-related expenses of $3.7 million in the current quarter compared to $2.8 million in the prior quarter and $1.8 million in the prior year second quarter.

Federal and State Income Tax Expense
Tax expense during the second quarter of 2020 was $14.3 million, an increase of $4.7 million, or 49 percent, compared to the prior quarter and an increase of $1.7 million, or 14 percent, from the prior year second quarter. The effective tax rate in the current and prior quarter was 18 percent which compares 19 percent prior year second quarter.

Efficiency Ratio
The current quarter efficiency ratio was 49.29 percent. Excluding the $15.7 million impact from the PPP loans, the efficiency ratio would have been 55.73 percent, which was a 318 basis points increase from the prior quarter efficiency ratio of 52.55 percent and was primarily due to an increase in expenses related to unfunded loan commitments and increases in compensation that were greater than the increase in gain on sale of loans. Excluding the impact of the PPP loans, the current quarter efficiency ratio increased 123 basis points from the prior year second quarter efficiency ratio of 54.50 percent which was driven by the increased compensation costs and decreases in service fee income from the Durbin Amendment that outpaced the increases in commercial loan interest income and gain on sale of loans.

Operating Results for Six Months Ended June 30, 2020
Compared to June 30, 2019

Income Summary

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	Six Months ended
(Dollars in thousands)	Jun 30, 2020		Jun 30, 2019		$ Change		% Change
Net interest income
46%; width:46%; min-width:46%;">Interest income	1%; width:1%; min-width:1%;">$	11%; width:11%; min-width:11%;">298,269	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	11%; width:11%; min-width:11%;">258,501	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	11%; width:11%; min-width:11%;">39,768	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	11%; width:11%; min-width:11%;">15	1%; width:1%; min-width:1%;">%
Interest expense	15,681			22,993			(7,312	)		(32	)%
Total net interest income	282,588			235,508			47,080			20	%
Non-interest income
Service charges and other fees	25,386			38,040			(12,654	)		(33	)%
Miscellaneous loan fees and charges	2,967			2,159			808			37	%
Gain on sale of loans	37,720			13,560			24,160			178	%
Gain on sale of investments	991			347			644			186	%
Other income	7,432			5,202			2,230			43	%
Total non-interest income	74,496			59,308			15,188			26	%
	$	357,084			$	294,816			$	62,268			21	%
Net interest margin (tax-equivalent)	4.23	%		4.33	%

Net Interest Income
Net-interest income of $283 million for the first half of 2020 increased $47.1 million, or 20 percent, over the first half of 2019. Interest income of $298 million for the first six months of 2020 increased $39.8 million, or 15 percent, from the first six months of 2019 and was primarily attributable to a $33.4 million increase in income from commercial loans. Interest expense of $15.7 million for the first six months of 2020 decreased $7.3 million, or 32 percent over the prior year same period primarily as a result of decreased higher cost FHLB advances and the decrease in the cost of deposits and borrowings. The total funding cost (including non-interest bearing deposits) for the first six months of 2020 was 25 basis points compared to 44 basis points for the first six months of 2019.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first six months of 2020 was 4.23 percent, a 10 basis points decrease from the net interest margin of 4.33 percent for the first six months of 2019. The core net interest margin, excluding 3 basis points of discount accretion and 6 basis points of income from the PPP loans was 4.26 which was the same as the prior year first half core margin. The Company has benefited this year with a reduction in higher cost FHLB advances and decreases in interest rates that has lowered the cost of funds, the combination of which offset the decrease in yields on the earning assets.

Non-interest Income
Non-interest income of $74.5 million for the first six months of 2020 increased $15.2 million, or 26 percent, over the same period last year. Service charges and other fees of $25.4 million for 2020 year to date decreased $12.7 million, or 33 percent, from the same period prior year as a result of a decrease in overdraft activity and the impact of the Durbin Amendment. Gain on the sale of loans of $37.7 million for the first six months of 2020, increased $24.2 million, or 178 percent, compared to the prior year as a result of increased refinance activity. Other income increased $2.2 million from the prior year and was the result of a gain of $2.4 million on the sale of a former branch building in the first quarter of 2020.

Non-interest Expense Summary

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	Six Months ended
(Dollars in thousands)	Jun 30, 2020		Jun 30, 2019		$ Change		% Change
46%; width:46%; min-width:46%;">Compensation and employee benefits	1%; width:1%; min-width:1%;">$	11%; width:11%; min-width:11%;">117,641	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	11%; width:11%; min-width:11%;">104,701	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	11%; width:11%; min-width:11%;">12,940	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	11%; width:11%; min-width:11%;">12	1%; width:1%; min-width:1%;">%
Occupancy and equipment	18,576			16,617			1,959			12	%
Advertising and promotions	4,625			5,155			(530	)		(10	)%
Data processing	10,324			7,954			2,370			30	%
Other real estate owned	187			330			(143	)		(43	)%
Regulatory assessments and insurance	2,127			3,133			(1,006	)		(32	)%
Core deposit intangibles amortization	5,146			3,559			1,587			45	%
Other expenses	31,443			27,551			3,892			14	%
Total non-interest expense	$	190,069			$	169,000			$	21,069			12	%

Total non-interest expense of $190 million for the first six months of 2020 increased $21.1 million, or 12 percent, over the prior year same period. Compensation and employee benefits for the first six months of 2020 increased $12.9 million, or 12 percent, from the same period last year due to the increased number of employees from acquisitions and organic growth and annual salary increases which more than offset the deferral of compensation cost from the PPP loans. Occupancy and equipment expense for the first six months of 2020 increased $2.0 million, or 12 percent from the prior year primarily from increased cost from acquisitions. Data processing expense for the first six months of 2020 increased $2.4 million, or 30 percent, from the prior year as a result of recent acquisitions along with general cost increases. Regulatory assessments and insurance decreased $1.0 million from the prior year primarily as a result of 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 $31.4 million, increased $3.9 million, or 14 percent, from the prior year and was primarily driven by an increase in acquisition-related expenses which were $6.5 million in the current year first half compared to $2.0 million in the prior year first half.

Credit Loss Expense
The credit loss expense was $36.3 million for the first six months of 2020, an increase of $36.2 million from the same period in the prior year, this increase was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the first six months of 2020 were $2.0 million compared to $2.2 million during the same period in 2019.

Federal and State Income Tax Expense
Tax expense of $23.9 million in the first six months of 2020 decreased $299 thousand, or 1 percent, over the prior year same period. The effective tax rate year-to-date in 2020 was 18 percent compared to 19 percent in the prior year same period.

Efficiency Ratio
The efficiency ratio was 50.81 percent for the six months of 2020. Excluding the $15.7 million impact from the PPP loans, the efficiency ratio would have been 54.21 percent, which was an improvement of 71 basis points from the prior year efficiency ratio of 54.93 percent which was the result of increases in gain on sale of loans and commercial loan interest income that more than offset the decreases in service fee income from the Durbin Amendment and increases in compensation expenses.

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 recently adopted CARES Act addressing the economic effects of the COVID-19 pandemic, 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, July 24, 2020. 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 1773226. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/i7pytzz9. 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 1773226 by August 7, 2020.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. (NASDAQ: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: 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

100%; border-collapse:collapse !important;">

(Dollars in thousands, except per share data)	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019
Assets
48%; width:48%; min-width:48%;">Cash on hand and in banks	1%; width:1%; min-width:1%;">$	11%; width:11%; min-width:11%;">212,681	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	11%; width:11%; min-width:11%;">204,373	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	11%; width:11%; min-width:11%;">198,639	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	11%; width:11%; min-width:11%;">181,526	1%; width:1%; min-width:1%;">
Interest bearing cash deposits	334,929			69,068			132,322			49,683
Cash and cash equivalents	547,610			273,441			330,961			231,209
Debt securities, available-for-sale	3,533,950			3,429,890			2,575,252			2,470,634
Debt securities, held-to-maturity	203,275			203,814			224,611			252,097
Total debt securities	3,737,225			3,633,704			2,799,863			2,722,731
Loans held for sale, at fair value	115,345			94,619			69,194			54,711
Loans receivable	11,453,378			10,088,206			9,512,810			8,841,777
Allowance for credit losses	(162,509	)		(150,190	)		(124,490	)		(129,054	)
Loans receivable, net	11,290,869			9,938,016			9,388,320			8,712,723
Premises and equipment, net	326,005			324,230			310,309			296,915
Other real estate owned	4,743			4,748			5,142			7,281
Accrued interest receivable	77,363			68,525			56,047			58,567
Deferred tax asset	—			—			2,037			3,371
Core deposit intangible, net	60,733			63,346			63,286			54,646
Goodwill	513,355			513,355			456,418			330,887
Non-marketable equity securities	11,592			30,597			11,623			23,031
Bank-owned life insurance	122,388			121,685			109,428			93,543
Other assets	99,420			92,118			81,371			86,746
Total assets	$	16,906,648			15,158,384			13,683,999			12,676,361
Liabilities
Non-interest bearing deposits	$	5,043,704			3,875,848			3,696,627			3,265,077
Interest bearing deposits	8,337,828			7,681,989			7,079,830			6,589,798
Securities sold under agreements to repurchase	881,227			580,335			569,824			494,651
FHLB advances	37,963			513,055			38,611			319,996
Other borrowed funds	32,546			32,499			28,820			14,765
Subordinated debentures	139,917			139,916			139,914			139,912
Accrued interest payable	4,211			4,713			4,686			5,091
Deferred tax liability	25,213			15,210			—
Other liabilities	200,324			178,175			164,954			159,695
Total liabilities	14,702,933			13,021,740			11,723,266			10,988,985
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	954			954			923			866
Paid-in capital	1,492,817			1,491,651			1,378,534			1,139,289
Retained earnings - substantially restricted	580,035			544,315			541,050			503,773
Accumulated other comprehensive income	129,909			99,724			40,226			43,448
Total stockholders’ equity	2,203,715			2,136,644			1,960,733			1,687,376
Total liabilities and stockholders’ equity	$	16,906,648			15,158,384			13,683,999			12,676,361

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

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	Three Months ended		Six Months ended
(Dollars in thousands, except per share data)	Jun 30, 2020		Mar 31, 2020		Jun 30, 2019		Jun 30, 2020		Jun 30, 2019
Interest Income
46%; width:46%; min-width:46%;">Debt securities	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">25,833	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">21,014	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">21,892	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">46,847	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">43,243	1%; width:1%; min-width:1%;">
Residential real estate loans	12,098			11,526			11,410			23,624			22,189
Commercial loans	106,343			98,684			88,043			205,027			171,582
Consumer and other loans	11,130			11,641			11,040			22,771			21,487
Total interest income	155,404			142,865			132,385			298,269			258,501
Interest Expense
Deposits	4,587			5,581			5,624			10,168			10,965
Securities sold under agreements to repurchase	908			989			886			1,897			1,688
Federal Home Loan Bank advances	268			346			3,847			614			6,902
Other borrowed funds	172			128			38			300			76
Subordinated debentures	1,250			1,452			1,694			2,702			3,362
Total interest expense	7,185			8,496			12,089			15,681			22,993
Net Interest Income	148,219			134,369			120,296			282,588			235,508
Credit loss expense	13,552			22,744			—			36,296			57
Net interest income after credit loss expense	134,667			111,625			120,296			246,292			235,451
Non-Interest Income
Service charges and other fees	11,366			14,020			20,025			25,386			38,040
Miscellaneous loan fees and charges	1,682			1,285			1,192			2,967			2,159
Gain on sale of loans	25,858			11,862			7,762			37,720			13,560
Gain on sale of debt securities	128			863			134			991			347
Other income	2,190			5,242			1,721			7,432			5,202
Total non-interest income	41,224			33,272			30,834			74,496			59,308
Non-Interest Expense
Compensation and employee benefits	57,981			59,660			51,973			117,641			104,701
Occupancy and equipment	9,357			9,219			8,180			18,576			16,617
Advertising and promotions	2,138			2,487			2,767			4,625			5,155
Data processing	5,042			5,282			4,062			10,324			7,954
Other real estate owned	75			112			191			187			330
Regulatory assessments and insurance	1,037			1,090			1,848			2,127			3,133
Core deposit intangibles amortization	2,613			2,533			1,865			5,146			3,559
Other expenses	19,898			11,545			15,284			31,443			27,551
Total non-interest expense	98,141			91,928			86,170			190,069			169,000
Income Before Income Taxes	77,750			52,969			64,960			130,719			125,759
Federal and state income tax expense	14,306			9,630			12,568			23,936			24,235
Net Income	$	63,444			43,339			52,392			106,783			101,524

Glacier Bancorp, Inc.
Average Balance Sheets

100%; border-collapse:collapse !important;">

	Three Months ended
	June 30, 2020		March 31, 2020
(Dollars in thousands)	Average Balance		Interest & Dividends		Average Yield/ Rate		Average Balance		Interest & Dividends		Average Yield/ Rate
Assets
37%; width:37%; min-width:37%;">Residential real estate loans	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">1,048,095	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">12,098	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">4.62	1%; width:1%; min-width:1%;">%	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">980,647	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">11,526	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">4.70	1%; width:1%; min-width:1%;">%
Commercial loans ¹	9,235,881			107,632			4.69	%		7,809,482			99,956			5.15	%
Consumer and other loans	957,798			11,130			4.67	%		926,924			11,641			5.05	%
Total loans ²	11,241,774			130,860			4.68	%		9,717,053			123,123			5.10	%
Tax-exempt investment securities ²	1,401,603			14,248			4.07	%		930,601			9,409			4.04	%
Taxable investment securities ⁴	2,266,707			14,730			2.60	%		2,059,581			13,772			2.67	%
Total earning assets	14,910,084			159,838			4.31	%		12,707,235			146,304			4.63	%
Goodwill and intangibles	575,296							539,431
Non-earning assets	797,403							690,338
Total assets	$	16,282,783							$	13,937,004
Liabilities
Non-interest bearing deposits	$	4,733,485			$	—			—	%		$	3,672,959			$	—			—	%
NOW and DDA accounts	3,018,706			687			0.09	%		2,675,152			915			0.14	%
Savings accounts	1,687,448			175			0.04	%		1,518,809			239			0.06	%
Money market deposit accounts	2,300,787			1,240			0.22	%		2,031,799			1,624			0.32	%
Certificate accounts	1,013,188			2,408			0.96	%		965,908			2,595			1.08	%
Total core deposits	12,753,614			4,510			0.14	%		10,864,627			5,373			0.20	%
Wholesale deposits ⁵	68,503			77			0.46	%		57,110			208			1.46	%
FHLB advances	182,061			268			0.58	%		108,672			346			1.26	%
Repurchase agreements and other borrowed funds	913,744			2,330			1.03	%		712,787			2,569			1.45	%
Total funding liabilities	13,917,922			7,185			0.21	%		11,743,196			8,496			0.29	%
Other liabilities	180,935							147,361
Total liabilities	14,098,857							11,890,557
Stockholders’ Equity
Common stock	954							933
Paid-in capital	1,492,230							1,417,004
Retained earnings	575,455							562,951
Accumulated other comprehensive income	115,287							65,559
Total stockholders’ equity	2,183,926							2,046,447
Total liabilities and stockholders’ equity	$	16,282,783							$	13,937,004
Net interest income (tax-equivalent)			$	152,653							$	137,808
Net interest spread (tax-equivalent)					4.10	%						4.34	%
Net interest margin (tax-equivalent)					4.12	%						4.36	%

______________________________

¹Includes tax effect of $1.3 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2020 and March 31, 2020, respectively.
²Total 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.
³Includes tax effect of $2.9 million and $1.9 million on tax-exempt debt securities income for the three months ended June 30, 2020 and March 31, 2020, respectively.
⁴Includes tax effect of $266 thousand and $266 thousand on federal income tax credits for the three months ended June 30, 2020 and March 31, 2020, respectively.
⁵Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

100%; border-collapse:collapse !important;">

	Three Months ended
	June 30, 2020		June 30, 2019
(Dollars in thousands)	Average Balance		Interest & Dividends		Average Yield/ Rate		Average Balance		Interest & Dividends		Average Yield/ Rate
Assets
37%; width:37%; min-width:37%;">Residential real estate loans	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">1,048,095	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">12,098	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">4.62	1%; width:1%; min-width:1%;">%	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">938,467	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">11,410	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">4.86	1%; width:1%; min-width:1%;">%
Commercial loans ¹	9,235,881			107,632			4.69	%		6,803,541			89,191			5.26	%
Consumer and other loans	957,798			11,130			4.67	%		868,733			11,040			5.10	%
Total loans ²	11,241,774			130,860			4.68	%		8,610,741			111,641			5.20	%
Tax-exempt debt securities ³	1,401,603			14,248			4.07	%		957,177			9,982			4.17	%
Taxable debt securities ⁴	2,266,707			14,730			2.60	%		1,911,173			14,246			2.98	%
Total earning assets	14,910,084			159,838			4.31	%		11,479,091			135,869			4.75	%
Goodwill and intangibles	575,296							351,466
Non-earning assets	797,403							584,459
Total assets	$	16,282,783							$	12,415,016
Liabilities
Non-interest bearing deposits	$	4,733,485			$	—			—	%		$	3,084,404			$	—			—	%
NOW and DDA accounts	3,018,706			687			0.09	%		2,394,505			985			0.17	%
Savings accounts	1,687,448			175			0.04	%		1,389,548			253			0.07	%
Money market deposit accounts	2,300,787			1,240			0.22	%		1,662,545			1,125			0.27	%
Certificate accounts	1,013,188			2,408			0.96	%		902,134			2,222			0.99	%
Total core deposits	12,753,614			4,510			0.14	%		9,433,136			4,585			0.19	%
Wholesale deposits ⁵	68,503			77			0.46	%		162,495			1,039			2.56	%
FHLB advances	182,061			268			0.58	%		476,204			3,847			3.20	%
Repurchase agreements and other borrowed funds	913,744			2,330			1.03	%		593,990			2,618			1.77	%
Total funding liabilities	13,917,922			7,185			0.21	%		10,665,825			12,089			0.45	%
Other liabilities	180,935							109,480
Total liabilities	14,098,857							10,775,305
Stockholders’ Equity
Common stock	954							860
Paid-in capital	1,492,230							1,110,138
Retained earnings	575,455							500,015
Accumulated other comprehensive income	115,287							28,698
Total stockholders’ equity	2,183,926							1,639,711
Total liabilities and stockholders’ equity	$	16,282,783							$	12,415,016
Net interest income (tax-equivalent)			$	152,653							$	123,780
Net interest spread (tax-equivalent)					4.10	%						4.30	%
Net interest margin (tax-equivalent)					4.12	%						4.33	%

______________________________

¹Includes tax effect of $1.3 million and $1.1 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2020 and 2019, respectively.
²Total 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.
³Includes tax effect of $2.9 million and $2.0 million on tax-exempt debt securities income for the three months ended June 30, 2020 and 2019, respectively.
⁴Includes tax effect of $266 thousand and $294 thousand on federal income tax credits for the three months ended June 30, 2020 and 2019, respectively.
⁵Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

100%; border-collapse:collapse !important;">

	Six Months ended
	June 30, 2020		June 30, 2019
(Dollars in thousands)	Average Balance		Interest & Dividends		Average Yield/ Rate		Average Balance		Interest & Dividends		Average Yield/ Rate
Assets
37%; width:37%; min-width:37%;">Residential real estate loans	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">1,014,371	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">23,624	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">4.66	1%; width:1%; min-width:1%;">%	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">927,953	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">22,189	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">4.78	1%; width:1%; min-width:1%;">%
Commercial loans ¹	8,522,681			207,588			4.90	%		6,664,637			173,804			5.26	%
Consumer and other loans	942,361			22,771			4.86	%		853,954			21,487			5.07	%
Total loans ²	10,479,413			253,983			4.87	%		8,446,544			217,480			5.19	%
Tax-exempt debt securities ³	1,166,102			23,657			4.06	%		958,864			19,932			4.16	%
Taxable debt securities ⁴	2,163,144			28,502			2.64	%		1,878,606			27,975			2.98	%
Total earning assets	13,808,659			306,142			4.46	%		11,284,014			265,387			4.74	%
Goodwill and intangibles	557,363							344,752
Non-earning assets	743,871							552,583
Total assets	$	15,109,893							$	12,181,349
Liabilities
Non-interest bearing deposits	$	4,203,222			$	—			—	%		$	3,014,476			$	—			—	%
NOW and DDA accounts	2,846,928			1,602			0.11	%		2,357,920			1,946			0.17	%
Savings accounts	1,603,129			414			0.05	%		1,374,759			487			0.07	%
Money market deposit accounts	2,166,293			2,864			0.27	%		1,676,348			2,135			0.26	%
Certificate accounts	989,548			5,003			1.02	%		903,562			4,236			0.95	%
Total core deposits	11,809,120			9,883			0.17	%		9,327,065			8,804			0.19	%
Wholesale deposits ⁵	62,806			285			0.91	%		165,909			2,161			2.63	%
FHLB advances	145,366			614			0.84	%		414,830			6,902			3.31	%
Repurchase agreements and other borrowed funds	813,266			4,899			1.21	%		575,262			5,126			1.80	%
Total funding liabilities	12,830,558			15,681			0.25	%		10,483,066			22,993			0.44	%
Other liabilities	164,148							112,793
Total liabilities	12,994,706							10,595,859
Stockholders’ Equity
Common stock	944							853
Paid-in capital	1,454,617							1,080,861
Retained earnings	569,203							485,898
Accumulated other comprehensive income	90,423							17,878
Total stockholders’ equity	2,115,187							1,585,490
Total liabilities and stockholders’ equity	$	15,109,893							$	12,181,349
Net interest income (tax-equivalent)			$	290,461							$	242,394
Net interest spread (tax-equivalent)					4.21	%						4.30	%
Net interest margin (tax-equivalent)					4.23	%						4.33	%

______________________________

¹Includes tax effect of $2.6 million and $2.2 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2020 and 2019, respectively.
²Total 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.
³Includes tax effect of $4.8 million and $4.1 million on tax-exempt debt securities income for the six months ended June 30, 2020 and 2019, respectively.
⁴Includes tax effect of $532 thousand and $587 thousand on federal income tax credits for the six months ended June 30, 2020 and 2019, respectively.
⁵Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification

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	Loans Receivable, by Loan Type		% Change from
(Dollars in thousands)	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019
27%; width:27%; min-width:27%;">Custom and owner occupied construction	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">177,172	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">172,238	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">143,479	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">140,186	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">3	1%; width:1%; min-width:1%;">%	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">23	1%; width:1%; min-width:1%;">%	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">26	1%; width:1%; min-width:1%;">%
Pre-sold and spec construction	161,964			180,799			180,539			171,464			(10	)%		(10	)%		(6	)%
Total residential construction	339,136			353,037			324,018			311,650			(4	)%		5	%		9	%
Land development	94,667			101,644			101,592			120,052			(7	)%		(7	)%		(21	)%
Consumer land or lots	120,015			121,082			125,759			128,544			(1	)%		(5	)%		(7	)%
Unimproved land	63,459			65,355			62,563			74,244			(3	)%		1	%		(15	)%
Developed lots for operative builders	26,647			32,661			17,390			14,117			(18	)%		53	%		89	%
Commercial lots	60,563			59,023			46,408			57,447			3	%		31	%		5	%
Other construction	477,922			453,403			478,368			453,782			5	%		—	%		5	%
Total land, lot, and other construction	843,273			833,168			832,080			848,186			1	%		1	%		(1	)%
Owner occupied	1,855,994			1,813,284			1,667,526			1,418,190			2	%		11	%		31	%
Non-owner occupied	2,238,586			2,200,664			2,017,375			1,780,988			2	%		11	%		26	%
Total commercial real estate	4,094,580			4,013,948			3,684,901			3,199,178			2	%		11	%		28	%
Commercial and industrial	2,342,081			1,151,817			991,580			1,024,828			103	%		136	%		129	%
Agriculture	714,227			694,444			701,363			697,893			3	%		2	%		2	%
1st lien	1,227,514			1,213,232			1,186,889			1,154,221			1	%		3	%		6	%
Junior lien	47,121			49,071			53,571			53,055			(4	)%		(12	)%		(11	)%
Total 1-4 family	1,274,635			1,262,303			1,240,460			1,207,276			1	%		3	%		6	%
Multifamily residential	343,870			352,379			342,498			278,539			(2	)%		—	%		23	%
Home equity lines of credit	655,492			656,953			617,900			592,355			—	%		6	%		11	%
Other consumer	181,402			180,832			174,643			167,964			—	%		4	%		8	%
Total consumer	836,894			837,785			792,543			760,319			—	%		6	%		10	%
States and political subdivisions	581,673			566,953			533,023			454,085			3	%		9	%		28	%
Other	198,354			116,991			139,538			114,534			70	%		42	%		73	%
Total loans receivable, including loans held for sale	11,568,723			10,182,825			9,582,004			8,896,488			14	%		21	%		30	%
Less loans held for sale ¹	(115,345	)		(94,619	)		(69,194	)		(54,711	)		22	%		67	%		111	%
Total loans receivable	$	11,453,378			$	10,088,206			$	9,512,810			$	8,841,777			14	%		20	%		30	%

______________________________

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

Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification

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	Non-performing Assets, by Loan Type		Non- Accrual Loans		Accruing Loans 90 Days or More Past Due		Other Real Estate Owned
(Dollars in thousands)	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019		Jun 30, 2020		Jun 30, 2020		Jun 30, 2020
30%; width:30%; min-width:30%;">Custom and owner occupied construction	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">440	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">188	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">185	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">283	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">440	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">—	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">—	1%; width:1%; min-width:1%;">
Pre-sold and spec construction	—			96			743			1,261			—			—			—
Total residential construction	440			284			928			1,544			440			—			—
Land development	659			1,432			852			1,272			411			—			248
Consumer land or lots	427			471			330			1,075			239			26			162
Unimproved land	663			680			1,181			8,864			387			—			276
Commercial lots	529			529			529			575			—			—			529
Other construction	—			—			—			241			—			—			—
Total land, lot and other construction	2,278			3,112			2,892			12,027			1,037			26			1,215
Owner occupied	9,424			5,269			4,608			6,998			7,770			209			1,445
Non-owner occupied	5,482			5,133			8,229			7,198			5,482			—			—
Total commercial real estate	14,906			10,402			12,837			14,196			13,252			209			1,445
Commercial and industrial	5,039			5,438			5,297			5,690			4,609			265			165
Agriculture	11,087			7,263			2,288			4,228			6,288			4,799			—
1st lien	7,634			8,410			8,671			10,211			5,426			401			1,807
Junior lien	746			640			569			592			567			179			—
Total 1-4 family	8,380			9,050			9,240			10,803			5,993			580			1,807
Multifamily residential	92			402			201			—			92			—			—
Home equity lines of credit	3,048			2,617			2,618			2,474			2,879			80			89
Other consumer	412			520			837			597			290			100			22
Total consumer	3,460			3,137			3,455			3,071			3,169			180			111
Other	289			290			299			380			277			12			—
Total	$	45,971			39,378			37,437			51,939			35,157			6,071			4,743

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

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	Accruing 30-89 Days Delinquent Loans, by Loan Type		% Change from
(Dollars in thousands)	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019		Mar 31, 2020		Dec 31, 2019		Jun 30, 2019
27%; width:27%; min-width:27%;">Custom and owner occupied construction	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">—	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">2,176	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">637	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">$	8%; width:8%; min-width:8%;">49	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">(100	1%; width:1%; min-width:1%;">)%	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">(100	1%; width:1%; min-width:1%;">)%	1%; width:1%; min-width:1%;">	8%; width:8%; min-width:8%;">(100	1%; width:1%; min-width:1%;">)%
Pre-sold and spec construction	—			328			148			219			(100	)%		(100	)%		(100	)%
Total residential construction	—			2,504			785			268			(100	)%		(100	)%		(100	)%
Land development	—			840			—			1,990			(100	)%		n/m		(100	)%
Consumer land or lots	248			321			672			206			(23	)%		(63	)%		20	%
Unimproved land	411			934			558			658			(56	)%		(26	)%		(38	)%
Developed lots for operative builders	—			—			2			—			n/m		(100	)%		n/m
Commercial lots	153			216			—			—			(29	)%		n/m		n/m
Other construction	—			—			—			—			n/m		n/m		n/m
Total land, lot and other construction	812			2,311			1,232			2,854			(65	)%		(34	)%		(72	)%
Owner occupied	1,512			3,235			3,052			5,322			(53	)%		(50	)%		(72	)%
Non-owner occupied	966			4,764			1,834			11,700			(80	)%		(47	)%		(92	)%
Total commercial real estate	2,478			7,999			4,886			17,022			(69	)%		(49	)%		(85	)%
Commercial and industrial	4,127			6,122			2,036			3,006			(33	)%		103	%		37	%
Agriculture	12,084			6,210			4,298			3,125			95	%		181	%		287	%
1st lien	656			7,419			4,711			2,776			(91	)%		(86	)%		(76	)%
Junior lien	160			795			624			1,302			(80	)%		(74	)%		(88	)%
Total 1-4 family	816			8,214			5,335			4,078			(90	)%		(85	)%		(80	)%
Home equity lines of credit	3,330			5,549			2,352			3,931			(40	)%		42	%		(15	)%
Other consumer	739			1,456			1,187			1,683			(49	)%		(38	)%		(56	)%
Total consumer	4,069			7,005			3,539			5,614			(42	)%		15	%		(28	)%
States and political subdivisions	124			—			—			—			n/m		n/m		n/m
Other	715			1,010			1,081			372			(29	)%		(34	)%		92	%
Total	$	25,225			$	41,375			$	23,192			$	37,937			(39	)%		9	%		(34	)%

______________________________
n/m - not measurable

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

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	Net Charge-Offs (Recoveries), Year-to-Date Period Ending, By Loan Type		Charge-Offs		Recoveries
(Dollars in thousands)	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019	Jun 30, 2019		Jun 30, 2020		Jun 30, 2020
35%; width:35%; min-width:35%;">Custom and owner occupied construction	1%; width:1%; min-width:1%;">$	9%; width:9%; min-width:9%;">—	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">—	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">98	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">—	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">—	1%; width:1%; min-width:1%;">	1%; width:1%; min-width:1%;">	9%; width:9%; min-width:9%;">—	1%; width:1%; min-width:1%;">
Pre-sold and spec construction	(12	)		(6	)		(18	)	(6	)		—			12
Total residential construction	(12	)		(6	)		80		(6	)		—			12
Land development	(50	)		(38	)		(30	)	15			—			50
Consumer land or lots	(17	)		3			(138	)	(2	)		7			24
Unimproved land	(287	)		(274	)		(311	)	(54	)		—			287
Developed lots for operative builders	—			—			(18	)	(18	)		—			—
Commercial lots	(3	)		(1	)		(6	)	(3	)		—			3
Other construction	—			—			(142	)	(32	)		—			—
Total land, lot and other construction	(357	)		(310	)		(645	)	(94	)		7			364
Owner occupied	(49	)		(16	)		(479	)	139			30			79
Non-owner occupied	115			(20	)		2,015		7			150			35
Total commercial real estate	66			(36	)		1,536		146			180			114
Commercial and industrial	576			61			1,472		37			1,034			458
Agriculture	33			36			21		(32	)		37			4
1st lien	—			14			(12	)	56			21			21
Junior lien	(129	)		(110	)		(303	)	(222	)		27			156
Total 1-4 family	(129	)		(96	)		(315	)	(166	)		48			177
Multifamily residential	(43	)		(43	)		—		—			—			43
Home equity lines of credit	24			(103	)		19		(11	)		166			142
Other consumer	161			88			603		313			281			120
Total consumer	185			(15	)		622		302			447			262
Other	1,727			1,222			4,035		2,055			3,482			1,755
Total	$	2,046			813			6,806		2,242			5,235			3,189

Visit our website at www.glacierbancorp.com

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CONTACT: Randall M. Chesler, CEO

(406) 751-4722

Ron J. Copher, CFO

(406) 751-7706

FAQ

What were Glacier Bancorp's net income figures for Q2 2020?

Glacier Bancorp reported a net income of $63.4 million for Q2 2020, an increase of 21% compared to the previous year.

How many PPP loans did Glacier Bancorp fund in Q2 2020?

In Q2 2020, Glacier Bancorp funded 15,291 PPP loans totaling $1.427 billion.

What was Glacier Bancorp's diluted EPS for the first half of 2020?

The diluted EPS for the first half of 2020 was $1.13, a decrease of 5% from the same period in 2019.

What significant transition did Glacier Bancorp make in June 2020?

Glacier Bancorp transitioned from the S&P SmallCap 600 to the S&P MidCap 400 index on June 22, 2020.

What was the increase in core deposits for Glacier Bancorp in Q2 2020?

Core deposits for Glacier Bancorp increased by $1.818 billion, or 16%, in Q2 2020.

Glacier Bancorp, Inc. Announces Results for the Quarter Ended June 30, 2020

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What were Glacier Bancorp's net income figures for Q2 2020?

How many PPP loans did Glacier Bancorp fund in Q2 2020?

What was Glacier Bancorp's diluted EPS for the first half of 2020?

What significant transition did Glacier Bancorp make in June 2020?

What was the increase in core deposits for Glacier Bancorp in Q2 2020?

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Glacier Bancorp, Inc. Announces Results for the Quarter Ended June 30, 2020

FAQ

What were Glacier Bancorp's net income figures for Q2 2020?

How many PPP loans did Glacier Bancorp fund in Q2 2020?

What was Glacier Bancorp's diluted EPS for the first half of 2020?

What significant transition did Glacier Bancorp make in June 2020?

What was the increase in core deposits for Glacier Bancorp in Q2 2020?

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