Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2022

Rhea-AI Summary

Glacier Bancorp reported a net income of $67.8 million for Q1 2022, a decrease of 16% year-over-year, driven by a decline in PPP-related income and an increase in credit loss expenses. The loan portfolio grew by $407 million (12% annualized), while core deposits rose by $383 million (7% annualized). Despite a 3% decrease in non-interest expenses quarter-over-quarter, the net interest income was $190 million, marking a 2% increase from the prior quarter. A dividend of $0.33 was declared, reflecting a 3% increase from the previous quarter.

Positive

• Net income increased by $17.1 million (34%) from the prior quarter.
• Loan portfolio grew by $407 million (12% annualized), showing strong demand.
• Core deposits rose by $383 million (7% annualized) during the quarter.
• Non-interest expense decreased by $3.7 million (3%) over the prior quarter.
• Declared a quarterly dividend of $0.33 per share, a 3% increase.

Negative

• Net income decreased by $13 million (16%) year-over-year.
• Diluted earnings per share fell by 28% from $0.85 to $0.61 compared to Q1 2021.
• PPP-related income decreased by $15.4 million year-over-year.
• Increased credit loss expenses of $7 million.

1st Quarter 2022 Highlights:

• The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, organically grew $407 million, or 12 percent annualized, in the current quarter.
• Net income of $67.8 million for the current quarter, an increase of $17.1 million, or 34 percent, from the prior quarter net income of $50.7 million.
• Non-interest expense of $130 million, decreased $3.7 million, or 3 percent, over the prior quarter non-interest expense of $134 million. Excluding the $6.2 million of acquisition-related expenses, non-interest expense was $124 million during the current quarter.
• Net interest income, on a tax-equivalent basis, was $190 million in the current quarter. Excluding the PPP loans, net interest income was $187 million which increased $3.2 million, or 2 percent, over the prior quarter net interest income of $184 million.
• Net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.20 percent compared to 3.21 percent in the prior quarter. The core net interest margin for the current quarter of 3.07 percent, increased 3 basis points from 3.04 percent in the prior quarter.
• Core deposits increased $383 million, or 7 percent annualized, during the current quarter.
• The Company completed the core system conversion of the Altabank division. This conversion was the largest and most complex in the Company’s history.
• Declared a quarterly dividend of $0.33 per share, an increase of $0.01 per share or 3 percent over the prior quarter regular dividend. The Company has declared 148 consecutive quarterly dividends and has increased the dividend 49 times.

Financial Summary  

	At or for the Three Months ended
(Dollars in thousands, except per share and market data)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021
Operating results
Net income	$	67,795			50,709			80,802
Basic earnings per share	$	0.61			0.46			0.85
Diluted earnings per share	$	0.61			0.46			0.85
Dividends declared per share1	$	0.33			0.42			0.31
Market value per share
Closing	$	50.28			56.70			57.08
High	$	60.69			60.54			67.35
Low	$	49.61			52.62			44.55
Selected ratios and other data
Number of common stock shares outstanding		110,763,316			110,687,533			95,501,819
Average outstanding shares - basic		110,724,655			110,687,365			95,465,801
Average outstanding shares - diluted		110,800,001			110,789,632			95,546,922
Return on average assets (annualized)		1.06	%		0.78	%		1.73	%
Return on average equity (annualized)		8.97	%		6.28	%		14.12	%
Efficiency ratio		57.11	%		57.68	%		46.75	%
Dividend payout ratio2		54.10	%		91.30	%		36.47	%
Loan to deposit ratio		63.52	%		63.24	%		70.72	%
Number of full time equivalent employees		3,439			3,436			2,994
Number of locations		223			224			193
Number of ATMs		273			273			250

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

KALISPELL, Mont., April 21, 2022 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $67.8 million for the current quarter, a decrease of $13.0 million, or 16 percent, from the $80.8 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.61 per share, a decrease of 28 percent from the prior year first quarter diluted earnings per share of $0.85. The $13.0 million decrease in first quarter earnings over the prior year first quarter was driven primarily by a $15.4 million decrease in the PPP related income, a $12.6 million decrease in gain on the sale of residential loans, an increase of $7.0 million of credit loss expense, and a $6.1 million increase in acquisition-related expenses. For the quarter, the Company experienced a $28.7 million increase, or 18 percent, in net interest income over the prior year first quarter. “The Glacier team started off the year with strong loan growth and earnings momentum,” said Randy Chesler, President and Chief Executive Officer. “While accelerating inflation and higher interest rates may create some economic headwinds, we remain optimistic about the year.”

Asset Summary

											$ Change from
(Dollars in thousands)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021			Dec 31, 2021			Mar 31, 2021
Cash and cash equivalents	$	436,805			437,686			878,450			(881	)		(441,645	)
Debt securities, available-for-sale		6,535,763			9,170,849			5,853,315			(2,635,086	)		682,448
Debt securities, held-to-maturity		3,576,941			1,199,164			588,751			2,377,777			2,988,190
Total debt securities		10,112,704			10,370,013			6,442,066			(257,309	)		3,670,638
Loans receivable
Residential real estate		1,125,648			1,051,883			745,097			73,765			380,551
Commercial real estate		8,865,585			8,630,831			6,474,701			234,754			2,390,884
Other commercial		2,661,048			2,664,190			3,100,584			(3,142	)		(439,536	)
Home equity		715,963			736,288			625,369			(20,325	)		90,594
Other consumer		362,775			348,839			324,178			13,936			38,597
Loans receivable		13,731,019			13,432,031			11,269,929			298,988			2,461,090
Allowance for credit losses		(176,159	)		(172,665	)		(156,446	)		(3,494	)		(19,713	)
Loans receivable, net		13,554,860			13,259,366			11,113,483			295,494			2,441,377
Other assets		1,995,955			1,873,580			1,336,553			122,375			659,402
Total assets	$	26,100,324			25,940,645			19,770,552			159,679			6,329,772

Total debt securities of $10.113 billion at March 31, 2022 decreased $257 million, or 2 percent, during the current quarter and increased $3.671 billion, or 57 percent, from the prior year first quarter. During 2020 and 2021, the Company experienced a sizeable increase in the investment portfolio as a result of the excess liquidity from the increase in core deposits. Debt securities represented 39 percent of total assets at March 31, 2022 compared to 40 percent at December 31, 2021 and 33 percent of total assets at March 31, 2021.

During the current quarter, the Company transferred $2.247 billion of available-for-sale (“AFS”) debt securities with a $55.7 million unrealized loss to held-to-maturity (“HTM”) designation after the Company determined it had both the intent and ability to hold such securities until maturity.

The loan portfolio of $13.731 billion at March 31, 2022 increased $299 million, or 2 percent, in the current quarter and increased $2.461 billion, or 22 percent, from the prior year first quarter. Excluding the PPP loans, the loan portfolio increased $407 million, or 12 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $235 million, or 11 percent annualized. Excluding the PPP loans and loans from the acquisition of Altabancorp and its Altabank subsidiary (“Alta”), the loan portfolio increased $1.486 billion, or 14 percent, from the prior year first quarter with the largest dollar increase in commercial real estate loans which increased $988 million, or 15 percent.

Credit Quality Summary

	At or for the Three Months ended				At or for the Year ended			At or for the Three Months ended
(Dollars in thousands)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021
Allowance for credit losses
Balance at beginning of period	$	172,665			158,243			158,243
Acquisitions		—			371			—
Provision for credit losses		4,344			16,380			489
Charge-offs		(2,695	)		(11,594	)		(4,246	)
Recoveries		1,845			9,265			1,960
Balance at end of period	$	176,159			172,665			156,446
Provision for credit losses
Loan portfolio	$	4,344			16,380			489
Unfunded loan commitments		2,687			6,696			(441	)
Total provision for credit losses	$	7,031			23,076			48
Other real estate owned	$	—			—			1,839
Other foreclosed assets		43			18			1,126
Accruing loans 90 days or more past due		4,510			17,141			3,733
Non-accrual loans		57,923			50,532			29,887
Total non-performing assets	$	62,476			67,691			36,585
Non-performing assets as a percentage of subsidiary assets		0.24	%		0.26	%		0.19	%
Allowance for credit losses as a percentage of non-performing loans		282	%		255	%		465	%
Allowance for credit losses as a percentage of total loans		1.28	%		1.29	%		1.39	%
Net charge-offs as a percentage of total loans		0.01	%		0.02	%		0.02	%
Accruing loans 30-89 days past due	$	16,080			50,566			44,616
Accruing troubled debt restructurings	$	33,702			34,591			41,345
Non-accrual troubled debt restructurings	$	2,501			2,627			4,702
U.S. government guarantees included in non-performing assets	$	5,068			4,028			2,778

Non-performing assets of $62.5 million at March 31, 2022 decreased $5.2 million, or 8 percent, over the prior quarter. Non-performing assets increased $25.9 million, or 71 percent, over the prior year first quarter primarily as a result of the Alta acquisition and two credit relationships. Non-performing assets as a percentage of subsidiary assets at March 31, 2022 was 0.24 percent compared to 0.26 percent in the prior quarter and 0.19 percent in the prior year first quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $16.1 million at March 31, 2022 decreased $34.5 million from the prior quarter with a large portion of the decrease primarily isolated to a single credit relationship. Early stage delinquencies decreased $28.5 million from the prior year first quarter. Early stage delinquencies as a percentage of loans at March 31, 2022 was 0.12 percent, which was a decrease of 26 basis points from prior quarter and an 28 basis points increase from prior year first quarter.

The current quarter credit loss expense of $7.0 million included $4.3 million of credit loss from loans and $2.7 million of credit loss from unfunded loan commitments.

The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at March 31 2022 was 1.28 percent which was a 1 basis point decrease compared to the prior quarter and an 11 basis points decrease from the prior year first quarter.

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

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

The current quarter provision for credit loss expense for loans was $4.3 million which was a decrease of $15.0 million from the prior quarter, which was driven by the prior quarter acquisition of Alta and the requirement to fully fund an allowance for credit loses on loans post-acquisition. Current quarter provision for credit loss expense increased $3.9 million from the prior year first quarter provision for credit loss expense of $489 thousand.

Net charge-offs for the current quarter were $850 thousand compared to $616 thousand for the prior quarter and $2.3 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

	At or for the Three Months ended
(Dollars in thousands)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021
PPP interest income	$	3,348			8,660			13,523
Deferred compensation on originating PPP loans		—			—			5,213
Total PPP income impact	$	3,348			8,660			18,736
Total PPP Loans	$	60,680			168,677			975,791
Net remaining fees		1,912			5,077			28,134

The Company continued to actively work with its PPP loan customers to obtain forgiveness from the SBA during the current quarter. The Company received $108 million in PPP loan forgiveness during the current quarter. As of March 31, 2022, the Company had $60.7 million of PPP loans remaining.

In the current quarter, the Company recognized $3.3 million of interest income (including deferred fees and costs) from the PPP loans. The income recognized in the current quarter included $3.0 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 March 31, 2022 was $1.9 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)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021			Dec 31, 2021			Mar 31, 2021
Deposits
Non-interest bearing deposits	$	7,990,003			7,779,288			6,040,440			210,715			1,949,563
NOW and DDA accounts		5,376,881			5,301,832			4,035,455			75,049			1,341,426
Savings accounts		3,287,521			3,180,046			2,206,592			107,475			1,080,929
Money market deposit accounts		4,044,655			4,014,128			2,817,708			30,527			1,226,947
Certificate accounts		995,147			1,036,077			965,986			(40,930	)		29,161
Core deposits, total		21,694,207			21,311,371			16,066,181			382,836			5,628,026
Wholesale deposits		3,688			25,878			38,143			(22,190	)		(34,455	)
Deposits, total		21,697,895			21,337,249			16,104,324			360,646			5,593,571
Repurchase agreements		958,479			1,020,794			996,878			(62,315	)		(38,399	)
Federal Home Loan Bank advances		80,000			—			—			80,000			80,000
Other borrowed funds		57,258			44,094			33,452			13,164			23,806
Subordinated debentures		132,661			132,620			132,499			41			162
Other liabilities		239,838			228,266			208,014			11,572			31,824
Total liabilities	$	23,166,131			22,763,023			17,475,167			403,108			5,690,964

Core deposits of $21.694 billion increased $383 million, or 7 percent annualized, during the current quarter and non-interest bearing deposits increased $211 million, or 11 percent annualized, during the current quarter. Excluding the Alta acquisition, core deposits increased $2.354 billion, or 15 percent, from the prior year first quarter. During 2020 and 2021, the Company experienced unprecedented increases in core deposits as a result of increased customer savings and federal stimulus. During the current quarter, the Company continued to experience a slowing of the deposit growth rates. Non-interest bearing deposits were 37 percent of total core deposits at March 31, 2022 and December 31, 2021 compared to 38 percent at March 31, 2021.

Stockholders’ Equity Summary

											$ Change from
(Dollars in thousands, except per share data)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021			Dec 31, 2021			Mar 31, 2021
Common equity	$	3,182,002			3,150,263			2,215,465			31,739			966,537
Accumulated other comprehensive (loss) income		(247,809	)		27,359			79,920			(275,168	)		(327,729	)
Total stockholders’ equity		2,934,193			3,177,622			2,295,385			(243,429	)		638,808
Goodwill and core deposit intangible, net		(1,034,987	)		(1,037,652	)		(567,034	)		2,665			(467,953	)
Tangible stockholders’ equity	$	1,899,206			2,139,970			1,728,351			(240,764	)		170,855

Stockholders’ equity to total assets		11.24	%		12.25	%		11.61	%
Tangible stockholders’ equity to total tangible assets		7.58	%		8.59	%		9.00	%
Book value per common share	$	26.49			28.71			24.03			(2.22	)		2.46
Tangible book value per common share	$	17.15			19.33			18.10			(2.18	)		(0.95	)

Tangible stockholders’ equity of $1.899 billion at Mach 31, 2022 decreased $241 million, or 11 percent, from the prior quarter which was primarily driven by a decrease in the unrealized gain on the AFS debt securities during the current quarter which was driven by an increase in interest rates. Tangible stockholders’ equity at March 31, 2022 increased $171 million, or 10 percent, from the prior year first quarter which largely was the result of $840 million of Company common stock issued for the acquisition of Alta, despite the increase in goodwill and core deposit intangibles associated with the Alta acquisition and a decrease in the unrealized gain on the AFS debt securities. Tangible book value per common share of $17.15 at the current quarter end decreased $2.18 per share, or 11 percent, from the prior quarter and decreased $0.95 per share, or 5 percent, from a year ago primarily as a result of the decrease in unrealized gain on AFS debt securities.

Cash Dividends
On March 30, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share, an increase of $0.01 per share or 3 percent over the prior quarter regular dividend. The dividend was payable April 21, 2022 to shareholders of record on April 12, 2022. The dividend was the 148th 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 March 31, 2022 
Compared to December 31, 2021, and March 31, 2021

Income Summary

	Three Months ended										$ Change from
(Dollars in thousands)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021			Dec 31, 2021			Mar 31, 2021
Net interest income
Interest income	$	190,516			192,825			161,552			(2,309	)		28,964
Interest expense		4,961			5,203			4,740			(242	)		221
Total net interest income		185,555			187,622			156,812			(2,067	)		28,743
Non-interest income
Service charges and other fees		17,111			17,576			12,792			(465	)		4,319
Miscellaneous loan fees and charges		3,555			3,745			2,778			(190	)		777
Gain on sale of loans		9,015			11,431			21,624			(2,416	)		(12,609	)
Gain (loss) on sale of investments		446			(693	)		284			1,139			162
Other income		3,436			2,303			2,643			1,133			793
Total non-interest income		33,563			34,362			40,121			(799	)		(6,558	)
Total income		219,118			221,984			196,933			(2,866	)		22,185
Net interest margin (tax-equivalent)		3.20	%		3.21	%		3.74	%

Net Interest Income
The current quarter net interest income of $186 million decreased $2.1 million, or 1 percent, compared to the prior quarter and increased $28.7 million, or 18 percent, from the prior year first quarter. The current quarter interest income of $191 million decreased $2.3 million, or 1 percent, over the prior quarter and was driven by the decrease of $5.3 million in interest income from the PPP loans. The current quarter interest income increased $29.0 million over the prior year first quarter primarily due to $30.2 million of interest income from Altabank division which more than offset the $10.2 million decrease in interest income from the PPP loans.

The current quarter interest expense of $5.0 million decreased $242 thousand, or 5 percent, over the prior quarter. Interest expense increased $221 thousand, or 5 percent, over the prior year first quarter primarily the result of an increase in deposit balances. The total cost of funding (including non-interest bearing deposits) was 9 basis points in the current and prior quarters compared to 12 basis points in the prior year first quarter which was driven by the decrease in rates on 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 3.20 percent compared to 3.21 percent in the prior quarter and 3.74 in the prior year first quarter. The core net interest margin, excluding 8 basis points of discount accretion, 1 basis point from non-accrual interest and 4 basis points increase from the PPP loans, was 3.07 percent compared to 3.04 in the prior quarter and 3.56 percent in the prior year first quarter. The core net interest margin increased 3 basis points in the current quarter as a result of increased investment yields that more than offset the decrease in the core loan yields. The core net interest margin decreased 49 basis points from the prior first quarter due to the decrease in core loan yields.

Non-interest Income
Non-interest income for the current quarter totaled $33.6 million which was a decrease of $799 thousand, or 2 percent, over the prior quarter and a decrease of $6.6 million, or 16 percent, over the same quarter last year. Gain on the sale of residential loans of $9.0 million for the current quarter decreased $2.4 million, or 21 percent, compared to the prior quarter and decreased $12.6 million, or 58 percent, from the prior year first 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.

Non-interest Expense Summary

	Three Months ended										$ Change from
(Dollars in thousands)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021			Dec 31, 2021			Mar 31, 2021
Compensation and employee benefits	$	79,074			77,703			62,468			1,371			16,606
Occupancy and equipment		10,964			11,259			9,515			(295	)		1,449
Advertising and promotions		3,232			3,436			2,371			(204	)		861
Data processing		7,475			7,468			5,206			7			2,269
Other real estate owned and foreclosed assets		—			34			12			(34	)		(12	)
Regulatory assessments and insurance		3,055			2,657			1,879			398			1,176
Core deposit intangibles amortization		2,664			2,807			2,488			(143	)		176
Other expenses		23,844			28,683			12,646			(4,839	)		11,198
Total non-interest expense	$	130,308			134,047			96,585			(3,739	)		33,723

Total non-interest expense of $130 million for the current quarter decreased $3.7 million, or 2.8 percent, over the prior quarter which was driven by a $2.0 million decrease in acquisition-related expenses during the current quarter. Acquisition-related expenses was $6.2 million in the current quarter compared to $8.2 million in the prior quarter and $104 thousand in the prior year first quarter. “Excluding current quarter acquisition-related expense, non-interest expense was $124 million. For the quarter, the Bank divisions have been excellent in controlling non-interest expenses,” said Ron Copher, Chief Financial Officer.

Total non-interest expense increased $33.7 million, or 35 percent, over the prior year first quarter which was primarily driven by the acquisition of Alta. Excluding $17.5 million of non-interest expense from the Altabank division, $5.2 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $4.9 million, or 5 percent, from the prior year first quarter. The increase includes $1.7 million from compensation and employee benefits driven by the increased number of employees, annual salary increases and $1.0 million increased expenses associated with equity investment in tax credits.

Federal and State Income Tax Expense
Tax expense during the first quarter of 2022 was $14.0 million, an increase of $4.7 million, or 51 percent, compared to the prior quarter and a decrease of $5.5 million, or 28 percent, from the prior year first quarter. The effective tax rate in the current quarter was 17.1 percent compared to 15.5 percent in the prior quarter with the increase driven by higher taxable income. The effective tax rate in the current quarter of 17.1 percent compared to 19.4 percent in the prior year first quarter with the decrease in the current quarter attributable to lower taxable income.

Efficiency Ratio
The efficiency ratio was 57.11 percent in the current quarter compared to 57.68 percent in the prior quarter and 46.75 in the prior year first quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 54.33 percent in the current quarter compared to 54.09 percent in the prior quarter and 46.70 percent in the prior year first quarter. The increase in the efficiency ratio from the prior year first quarter was driven by the decrease in gain on the sale of residential loans, the decrease in income from the PPP loans and the increase in non-interest expense.

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

• the risks associated with lending and potential adverse changes on the credit quality of loans in the Company’s portfolio;
• changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin and overall profitability;
• 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;
• 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, April 22, 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 8258327. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/oshci2jh. 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 8258327 by April 29, 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).

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

(Dollars in thousands, except per share data)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021
Assets
Cash on hand and in banks	$	282,335			198,087			227,745
Interest bearing cash deposits		154,470			239,599			650,705
Cash and cash equivalents		436,805			437,686			878,450
Debt securities, available-for-sale		6,535,763			9,170,849			5,853,315
Debt securities, held-to-maturity		3,576,941			1,199,164			588,751
Total debt securities		10,112,704			10,370,013			6,442,066
Loans held for sale, at fair value		51,284			60,797			118,731
Loans receivable		13,731,019			13,432,031			11,269,929
Allowance for credit losses		(176,159	)		(172,665	)		(156,446	)
Loans receivable, net		13,554,860			13,259,366			11,113,483
Premises and equipment, net		373,123			372,597			322,354
Other real estate owned and foreclosed assets		43			18			2,965
Accrued interest receivable		81,467			76,673			79,331
Deferred tax asset		120,025			27,693			—
Core deposit intangible, net		49,594			52,259			53,021
Goodwill		985,393			985,393			514,013
Non-marketable equity securities		13,217			10,020			10,022
Bank-owned life insurance		167,298			167,671			122,843
Other assets		154,511			120,459			113,273
Total assets	$	26,100,324			25,940,645			19,770,552
Liabilities
Non-interest bearing deposits	$	7,990,003			7,779,288			6,040,440
Interest bearing deposits		13,707,892			13,557,961			10,063,884
Securities sold under agreements to repurchase		958,479			1,020,794			996,878
FHLB advances		80,000			—			—
Other borrowed funds		57,258			44,094			33,452
Subordinated debentures		132,661			132,620			132,499
Accrued interest payable		2,284			2,409			2,590
Deferred tax liability		—			—			3,116
Other liabilities		237,554			225,857			202,308
Total liabilities		23,166,131			22,763,023			17,475,167
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		1,108			1,107			955
Paid-in capital		2,339,405			2,338,814			1,495,438
Retained earnings - substantially restricted		841,489			810,342			719,072
Accumulated other comprehensive (loss) income		(247,809	)		27,359			79,920
Total stockholders’ equity		2,934,193			3,177,622			2,295,385
Total liabilities and stockholders’ equity	$	26,100,324			25,940,645			19,770,552

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

	Three Months ended
(Dollars in thousands, except per share data)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021
Interest Income
Debt securities	$	38,654			35,711			27,306
Residential real estate loans		15,515			13,728			10,146
Commercial loans		124,556			131,158			113,541
Consumer and other loans		11,791			12,228			10,559
Total interest income		190,516			192,825			161,552
Interest Expense
Deposits		3,464			3,708			3,014
Securities sold under agreements to repurchase		393			467			689
Federal Home Loan Bank advances		12			—			—
Other borrowed funds		220			184			174
Subordinated debentures		872			844			863
Total interest expense		4,961			5,203			4,740
Net Interest Income		185,555			187,622			156,812
Provision for credit losses		7,031			27,956			48
Net interest income after provision for credit losses		178,524			159,666			156,764
Non-Interest Income
Service charges and other fees		17,111			17,576			12,792
Miscellaneous loan fees and charges		3,555			3,745			2,778
Gain on sale of loans		9,015			11,431			21,624
Gain (loss) on sale of debt securities		446			(693	)		284
Other income		3,436			2,303			2,643
Total non-interest income		33,563			34,362			40,121
Non-Interest Expense
Compensation and employee benefits		79,074			77,703			62,468
Occupancy and equipment		10,964			11,259			9,515
Advertising and promotions		3,232			3,436			2,371
Data processing		7,475			7,468			5,206
Other real estate owned and foreclosed assets		—			34			12
Regulatory assessments and insurance		3,055			2,657			1,879
Core deposit intangibles amortization		2,664			2,807			2,488
Other expenses		23,844			28,683			12,646
Total non-interest expense		130,308			134,047			96,585
Income Before Income Taxes		81,779			59,981			100,300
Federal and state income tax expense		13,984			9,272			19,498
Net Income	$	67,795			50,709			80,802

Glacier Bancorp, Inc.
Average Balance Sheets

	Three Months ended
	March 31, 2022											December 31, 2021
(Dollars in thousands)	Average Balance				Interest & Dividends				Average Yield/ Rate			Average Balance				Interest & Dividends				Average Yield/ Rate
Assets
Residential real estate loans	$	1,140,224			$	15,515			5.44	%		$	1,104,232			$	13,728			4.97	%
Commercial loans 1		11,318,767				125,919			4.51	%			11,184,129				132,561			4.70	%
Consumer and other loans		1,075,102				11,791			4.45	%			1,082,341				12,228			4.48	%
Total loans 2		13,534,093				153,225			4.59	%			13,370,702				158,517			4.70	%
Tax-exempt debt securities 3		1,723,125				15,664			3.64	%			1,693,761				15,552			3.67	%
Taxable debt securities 4		8,883,211				26,465			1.19	%			8,709,938				23,555			1.08	%
Total earning assets		24,140,429				195,354			3.28	%			23,774,401				197,624			3.30	%
Goodwill and intangibles		1,036,315											1,031,002
Non-earning assets		756,422											950,923
Total assets	$	25,933,166										$	25,756,326
Liabilities
Non-interest bearing deposits	$	7,859,706			$	—			—	%		$	7,955,888			$	—			—	%
NOW and DDA accounts		5,279,984				845			0.06	%			5,120,484				970			0.08	%
Savings accounts		3,246,512				332			0.04	%			3,133,654				346			0.04	%
Money market deposit accounts		4,030,795				1,381			0.14	%			3,883,818				1,374			0.14	%
Certificate accounts		1,019,595				897			0.36	%			1,051,787				1,004			0.38	%
Total core deposits		21,436,592				3,455			0.07	%			21,145,631				3,694			0.07	%
Wholesale deposits 5		17,191				9			0.22	%			26,104				14			0.21	%
Repurchase agreements		970,544				393			0.16	%			1,015,369				467			0.18	%
FHLB advances		15,000				12			0.33	%			—				—			—	%
Subordinated debentures and other borrowed funds		179,725				1,092			2.46	%			167,545				1,028			2.43	%
Total funding liabilities		22,619,052				4,961			0.09	%			22,354,649				5,203			0.09	%
Other liabilities		249,316											199,207
Total liabilities		22,868,368											22,553,856
Stockholders’ Equity
Common stock		1,107											1,107
Paid-in capital		2,338,887											2,338,013
Retained earnings		847,172											815,726
Accumulated other comprehensive (loss) income		(122,368	)										47,624
Total stockholders’ equity		3,064,798											3,202,470
Total liabilities and stockholders’ equity	$	25,933,166										$	25,756,326
Net interest income (tax-equivalent)					$	190,393										$	192,421
Net interest spread (tax-equivalent)									3.19	%										3.21	%
Net interest margin (tax-equivalent)									3.20	%										3.21	%

^{______________________________
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 March 31, 2022 and December 31, 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 $3.3 million and $3.2 million on tax-exempt debt securities income for the three months ended March 31, 2022 and December 31, 2021, respectively.
⁴ Includes tax effect of $225 thousand on federal income tax credits for the three months ended March 31, 2022 and December 31, 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
	March 31, 2022											March 31, 2021
(Dollars in thousands)	Average Balance				Interest & Dividends				Average Yield/ Rate			Average Balance				Interest & Dividends				Average Yield/ Rate
Assets
Residential real estate loans	$	1,140,224			$	15,515			5.44	%		$	893,052			$	10,146			4.54	%
Commercial loans 1		11,318,767				125,919			4.51	%			9,412,281				114,928			4.95	%
Consumer and other loans		1,075,102				11,791			4.45	%			949,736				10,559			4.51	%
Total loans 2		13,534,093				153,225			4.59	%			11,255,069				135,633			4.89	%
Tax-exempt debt securities 3		1,723,125				15,664			3.64	%			1,545,484				14,710			3.81	%
Taxable debt securities 4		8,883,211				26,465			1.19	%			4,713,936				15,851			1.35	%
Total earning assets		24,140,429				195,354			3.28	%			17,514,489				166,194			3.85	%
Goodwill and intangibles		1,036,315											568,222
Non-earning assets		756,422											843,305
Total assets	$	25,933,166										$	18,926,016
Liabilities
Non-interest bearing deposits	$	7,859,706			$	—			—	%		$	5,591,531			$	—			—	%
NOW and DDA accounts		5,279,984				845			0.06	%			3,830,856				570			0.06	%
Savings accounts		3,246,512				332			0.04	%			2,092,517				138			0.03	%
Money market deposit accounts		4,030,795				1,381			0.14	%			2,719,267				865			0.13	%
Certificate accounts		1,019,595				897			0.36	%			971,584				1,422			0.59	%
Total core deposits		21,436,592				3,455			0.07	%			15,205,755				2,995			0.08	%
Wholesale deposits 5		17,191				9			0.22	%			38,076				19			0.20	%
Repurchase agreements		970,544				393			0.16	%			1,001,394				689			0.28	%
FHLB advances		15,000				12			0.33	%			—				—			—	%
Subordinated debentures and other borrowed funds		179,725				1,092			2.46	%			165,830				1,037			2.54	%
Total funding liabilities		22,619,052				4,961			0.09	%			16,411,055				4,740			0.12	%
Other liabilities		249,316											193,858
Total liabilities		22,868,368											16,604,913
Stockholders’ Equity
Common stock		1,107											955
Paid-in capital		2,338,887											1,495,138
Retained earnings		847,172											710,137
Accumulated other comprehensive (loss) income		(122,368	)										114,873
Total stockholders’ equity		3,064,798											2,321,103
Total liabilities and stockholders’ equity	$	25,933,166										$	18,926,016
Net interest income (tax-equivalent)					$	190,393										$	161,454
Net interest spread (tax-equivalent)									3.19	%										3.73	%
Net interest margin (tax-equivalent)									3.20	%										3.74	%

______________________________
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 March 31, 2022 and 2021, respectively.
² Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
³ Includes tax effect of $3.3 million and $3.0 million on tax-exempt debt securities income for the three months ended March 31, 2022 and 2021, respectively.
⁴ Includes tax effect of $225 thousand and $255 thousand on federal income tax credits for the three months ended March 31, 2022 and 2021, respectively.
⁵ Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification

	Loans Receivable, by Loan Type												% Change from
(Dollars in thousands)	Mar 31, 2022				Dec 31, 2021				Mar 31, 2021				Dec 31, 2021			Mar 31, 2021
Custom and owner occupied construction	$	265,579			$	263,758			$	153,226			1	%		73	%
Pre-sold and spec construction		258,429				257,568				154,312			—	%		67	%
Total residential construction		524,008				521,326				307,538			1	%		70	%
Land development		180,270				185,200				103,960			(3	)%		73	%
Consumer land or lots		184,217				173,305				133,409			6	%		38	%
Unimproved land		90,498				81,064				62,002			12	%		46	%
Developed lots for operative builders		61,276				41,840				27,310			46	%		124	%
Commercial lots		98,403				99,418				61,289			(1	)%		61	%
Other construction		833,218				762,970				604,326			9	%		38	%
Total land, lot, and other construction		1,447,882				1,343,797				992,296			8	%		46	%
Owner occupied		2,675,681				2,645,841				1,973,309			1	%		36	%
Non-owner occupied		3,190,519				3,056,658				2,372,644			4	%		34	%
Total commercial real estate		5,866,200				5,702,499				4,345,953			3	%		35	%
Commercial and industrial		1,378,500				1,463,022				1,883,438			(6	)%		(27	)%
Agriculture		731,248				751,185				728,579			(3	)%		—	%
1st lien		1,466,279				1,393,267				1,130,339			5	%		30	%
Junior lien		33,438				34,830				35,230			(4	)%		(5	)%
Total 1-4 family		1,499,717				1,428,097				1,165,569			5	%		29	%
Multifamily residential		545,483				545,001				380,172			—	%		43	%
Home equity lines of credit		753,362				761,990				664,800			(1	)%		13	%
Other consumer		207,827				207,513				191,152			—	%		9	%
Total consumer		961,189				969,503				855,952			(1	)%		12	%
States and political subdivisions		659,742				615,251				546,086			7	%		21	%
Other		168,334				153,147				183,077			10	%		(8	)%
Total loans receivable, including loans held for sale		13,782,303				13,492,828				11,388,660			2	%		21	%
Less loans held for sale 1		(51,284	)			(60,797	)			(118,731	)		(16	)%		(57	)%
Total loans receivable	$	13,731,019			$	13,432,031			$	11,269,929			2	%		22	%

______________________________
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)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021			Mar 31, 2022			Mar 31, 2022			Mar 31, 2022
Custom and owner occupied construction	$	233			237			246			233			—			—
Land development		240			250			330			240			—			—
Consumer land or lots		160			309			325			160			—			—
Unimproved land		128			124			243			113			15			—
Commercial lots		—			—			368			—			—			—
Other construction		12,884			12,884			—			12,884			—			—
Total land, lot and other construction		13,412			13,567			1,266			13,397			15			—
Owner occupied		3,508			3,918			5,272			3,508			—			—
Non-owner occupied		1,526			6,063			4,615			1,526			—			—
Total commercial real estate		5,034			9,981			9,887			5,034			—			—
Commercial and Industrial		4,252			3,066			6,100			3,366			886			—
Agriculture		28,801			29,151			8,392			25,641			3,160			—
1st lien		2,015			2,870			4,303			1,996			19			—
Junior lien		301			136			290			111			190			—
Total 1-4 family		2,316			3,006			4,593			2,107			209			—
Multifamily residential		6,469			6,548			—			6,469			—			—
Home equity lines of credit		1,416			1,563			3,614			1,321			95			—
Other consumer		543			460			1,017			355			145			43
Total consumer		1,959			2,023			4,631			1,676			240			43
Other		—			112			1,470			—			—			—
Total	$	62,476			67,691			36,585			57,923			4,510			43

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

	Accruing 30-89 Days Delinquent Loans,  by Loan Type												% Change from
(Dollars in thousands)	Mar 31, 2022				Dec 31, 2021				Mar 31, 2021				Dec 31, 2021			Mar 31, 2021
Custom and owner occupied construction	$	703			$	1,243			$	963			(43	)%		(27	)%
Pre-sold and spec construction		—				443				—			(100	)%		n/m
Total residential construction		703				1,686				963			(58	)%		(27	)%
Land development		317				—				—			n/m			n/m
Consumer land or lots		28				149				215			(81	)%		(87	)%
Unimproved land		—				305				334			(100	)%		(100	)%
Developed lots for operative builders		142				—				—			n/m			n/m
Commercial lots		54				—				—			n/m			n/m
Other construction		—				30,788				1,520			(100	)%		(100	)%
Total land, lot and other construction		541				31,242				2,069			(98	)%		(74	)%
Owner occupied		3,778				1,739				1,784			117	%		112	%
Non-owner occupied		266				1,558				2,407			(83	)%		(89	)%
Total commercial real estate		4,044				3,297				4,191			23	%		(4	)%
Commercial and industrial		3,275				4,732				2,063			(31	)%		59	%
Agriculture		162				459				25,458			(65	)%		(99	)%
1st lien		2,963				2,197				5,984			35	%		(50	)%
Junior lien		78				87				18			(10	)%		333	%
Total 1-4 family		3,041				2,284				6,002			33	%		(49	)%
Home equity lines of credit		1,315				1,994				1,223			(34	)%		8	%
Other consumer		1,097				1,681				519			(35	)%		111	%
Total consumer		2,412				3,675				1,742			(34	)%		38	%
States and political subdivisions		21				1,733				375			(99	)%		(94	)%
Other		1,881				1,458				1,753			29	%		7	%
Total	$	16,080			$	50,566			$	44,616			(68	)%		(64	)%

______________________________
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)	Mar 31, 2022				Dec 31, 2021			Mar 31, 2021			Mar 31, 2022			Mar 31, 2022
Pre-sold and spec construction		(4	)		(15	)		(7	)		—			4
Land development		(21	)		(233	)		(75	)		—			21
Consumer land or lots		(10	)		(165	)		(141	)		—			10
Unimproved land		—			(241	)		(21	)		—			—
Total land, lot and other construction		(31	)		(639	)		(237	)		—			31
Owner occupied		(386	)		(423	)		(54	)		—			386
Non-owner occupied		(2	)		(357	)		(505	)		—			2
Total commercial real estate		(388	)		(780	)		(559	)		—			388
Commercial and industrial		(449	)		41			80			33			482
Agriculture		(2	)		(20	)		(1	)		—			2
1st lien		(9	)		(331	)		5			—			9
Junior lien		(78	)		(650	)		(47	)		—			78
Total 1-4 family		(87	)		(981	)		(42	)		—			87
Multifamily residential		—			(40	)		—			—			—
Home equity lines of credit		(5	)		(621	)		25			—			5
Other consumer		55			236			46			122			67
Total consumer		50			(385	)		71			122			72
Other		1,761			5,148			2,981			2,540			779
Total	$	850			2,329			2,286			2,695			1,845

Visit our website at www.glacierbancorp.com

CONTACT: Randall M. Chesler, CEO

(406) 751-4722

Ron J. Copher, CFO

(406) 751-7706

FAQ

What is Glacier Bancorp's net income for Q1 2022?

Glacier Bancorp reported a net income of $67.8 million for Q1 2022.

How did net income change compared to Q1 2021 for GBCI?

Net income decreased by $13 million, or 16%, compared to Q1 2021.

What was the growth rate of the loan portfolio for GBCI in Q1 2022?

The loan portfolio grew by $407 million, or 12% annualized, in Q1 2022.

What was the diluted earnings per share for Glacier Bancorp in Q1 2022?

The diluted earnings per share for Q1 2022 was $0.61.

What is the dividend declared by GBCI for Q1 2022?

Glacier Bancorp declared a quarterly dividend of $0.33 per share, a 3% increase from the previous quarter.