Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2023

Rhea-AI Summary

In the first quarter of 2023, Glacier Bancorp, Inc. (GBCI) reported a net income of $61.2 million, reflecting a decrease of 10% from the previous year. The diluted earnings per share also fell to $0.55, down 10% year-over-year. Despite challenges from rising funding costs linked to Federal Reserve rate increases, interest income increased 22% year-over-year to $232 million. The company maintained a strong cash position with liquidity of $15.1 billion. Total deposits stood at $21.34 billion, a slight decrease compared to the prior quarter. A quarterly dividend of $0.33 per share was declared, continuing a streak of 152 consecutive dividends. Non-performing assets remained stable at 0.12% of subsidiary assets.

Positive

• Interest income increased by $41.4 million, or 22%, year-over-year, totaling $232 million.
• Strong liquidity position with available liquidity totaling $15.1 billion.
• Loan portfolio increased by $272 million, or 7% annualized during the quarter.
• Maintained non-performing assets at 0.12% of subsidiary assets, showing stable asset quality.
• Declared a quarterly dividend of $0.33 per share, maintaining a track record of 152 consecutive dividends.

Negative

• Net income decreased by $6.6 million, or 10%, compared to the first quarter of the previous year.
• Diluted earnings per share declined by 10% year-over-year to $0.55.
• Total deposits decreased by $213 million, or 1%, during the current quarter.
• Rise in interest expenses increased by 117% over the prior quarter, impacting profitability.

1st Quarter 2023 Highlights:

• Net income was $61.2 million for the current quarter, a decrease of $18.5 million, or 23 percent, from the prior quarter net income of $79.7 million. Net income for the current quarter decreased $6.6 million, or 10 percent, from the prior year first quarter net income of $67.8 million.
• Interest income of $232 million in the current quarter increased $6.8 million, or 3 percent, over the prior quarter interest income of $225 million. Interest income in the current quarter increased $41.4 million, or 22 percent, over the prior year first quarter.
• Total deposits and retail repurchase agreements of $21.340 billion at the current quarter end increased $289 million, or 1 percent, during March and decreased $213 million, or 1 percent, during the current quarter.
• The loan portfolio of $15.519 billion, increased $272 million, or 7 percent annualized, during the current quarter.
• The loan yield for the current quarter of 5.02 percent, increased 19 basis points, compared to 4.83 percent in the prior quarter and increased 43 basis points from the prior year first quarter loan yield of 4.59 percent. New loan production yields for the quarter were 6.96 percent.
• The Company increased its cash position by $1.1 billion during the current quarter.
• Available liquidity of $15.1 billion including cash, borrowing capacity from the Federal Home Loan Bank (“FHLB”) and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.
• Non-performing assets as a percentage of subsidiary assets was 0.12 percent in the current and prior quarter, compared to 0.24 percent in the prior year first quarter.
• Stockholders’ equity of $2.927 billion increased $83.6 million, or 3 percent, during the current quarter.
• The Company declared a quarterly dividend of $0.33 per share. The Company has declared 152 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, 2023				Dec 31, 2022			Mar 31, 2022
Operating results
Net income	$	61,211			79,677			67,795
Basic earnings per share	$	0.55			0.72			0.61
Diluted earnings per share	$	0.55			0.72			0.61
Dividends declared per share	$	0.33			0.33			0.33
Market value per share
Closing	$	42.01			49.42			50.28
High	$	50.03			59.70			60.69
Low	$	37.07			48.64			49.61
Selected ratios and other data
Number of common stock shares outstanding		110,868,713			110,777,780			110,763,316
Average outstanding shares - basic		110,824,648			110,773,084			110,724,655
Average outstanding shares - diluted		110,881,708			110,872,127			110,800,001
Return on average assets (annualized)		0.93	%		1.19	%		1.06	%
Return on average equity (annualized)		8.54	%		11.35	%		8.97	%
Efficiency ratio		60.39	%		53.18	%		57.11	%
Dividend payout		60.00	%		45.83	%		54.10	%
Loan to deposit ratio		77.09	%		74.05	%		63.52	%
Number of full time equivalent employees		3,390			3,390			3,439
Number of locations		222			221			223
Number of ATMs		263			265			273

KALISPELL, Mont., April 20, 2023 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $61.2 million for the current quarter, a decrease of $6.6 million, or 10 percent, from the $67.8 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.55 per share, a decrease of 10 percent from the prior year first quarter diluted earnings per share of $0.61. The decrease in net income versus the prior quarter and prior year first quarter is primarily due to the significant increase in funding costs. “The historic pace of the Federal Reserve interest rate increases and the banking crisis drove borrowing costs up further and impacted our profitability. Our ability to weather these events is a clear demonstration of the strength of our business model and our team,” said Randy Chesler, President and Chief Executive Officer. “We remain confident in the strength of our Company and the dynamic markets and customers we serve.”

Asset Summary

											$ Change from
(Dollars in thousands)	Mar 31, 2023				Dec 31, 2022			Mar 31, 2022			Dec 31, 2022			Mar 31, 2022
Cash and cash equivalents	$	1,529,534			401,995			436,805			1,127,539			1,092,729
Debt securities, available-for-sale		5,198,313			5,307,307			6,535,763			(108,994	)		(1,337,450	)
Debt securities, held-to-maturity		3,664,393			3,715,052			3,576,941			(50,659	)		87,452
Total debt securities		8,862,706			9,022,359			10,112,704			(159,653	)		(1,249,998	)
Loans receivable
Residential real estate		1,508,403			1,446,008			1,125,648			62,395			382,755
Commercial real estate		9,992,019			9,797,047			8,865,585			194,972			1,126,434
Other commercial		2,804,104			2,799,668			2,661,048			4,436			143,056
Home equity		829,844			822,232			715,963			7,612			113,881
Other consumer		384,242			381,857			362,775			2,385			21,467
Loans receivable		15,518,612			15,246,812			13,731,019			271,800			1,787,593
Allowance for credit losses		(186,604	)		(182,283	)		(176,159	)		(4,321	)		(10,445	)
Loans receivable, net		15,332,008			15,064,529			13,554,860			267,479			1,777,148
Other assets		2,078,186			2,146,492			1,995,955			(68,306	)		82,231
Total assets	$	27,802,434			26,635,375			26,100,324			1,167,059			1,702,110

Total debt securities of $8.863 billion at March 31, 2023 decreased $160 million, or 2 percent, during the current quarter and decreased $1.250 billion, or 12 percent, from the prior year first quarter. The Company continues to utilize cash flow from the securities portfolio to primarily fund loan growth. Debt securities represented 32 percent of total assets at March 31, 2023 compared to 34 percent at December 31, 2022 and 39 percent at March 31, 2022. In addition, the Company increased its cash position by $1.1 billion during the current quarter to further strengthen its liquidity position.

The loan portfolio of $15.519 billion increased $272 million, or 7 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $195 million, or 8 percent annualized. The loan portfolio increased $1.788 billion, or 13 percent, from the prior year first quarter with the largest dollar increase in commercial real estate loans which increased $1.126 billion, or 13 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, 2023				Dec 31, 2022			Mar 31, 2022
Allowance for credit losses
Balance at beginning of period	$	182,283			172,665			172,665
Provision for credit losses		6,260			17,433			4,344
Charge-offs		(3,293	)		(14,970	)		(2,695	)
Recoveries		1,354			7,155			1,845
Balance at end of period	$	186,604			182,283			176,159
Provision for credit losses
Loan portfolio	$	6,260			17,433			4,344
Unfunded loan commitments		(790	)		2,530			2,687
Total provision for credit losses	$	5,470			19,963			7,031
Other real estate owned	$	—			—			—
Other foreclosed assets		31			32			43
Accruing loans 90 days or more past due		3,545			1,559			4,510
Non-accrual loans		28,403			31,151			57,923
Total non-performing assets	$	31,979			32,742			62,476
Non-performing assets as a percentage of subsidiary assets		0.12	%		0.12	%		0.24	%
Allowance for credit losses as a percentage of non-performing loans		584	%		557	%		282	%
Allowance for credit losses as a percentage of total loans		1.20	%		1.20	%		1.28	%
Net charge-offs as a percentage of total loans		0.01	%		0.05	%		0.01	%
Accruing loans 30-89 days past due	$	24,993			20,967			16,080
U.S. government guarantees included in non-performing assets	$	2,071			2,312			5,068

Non-performing assets of $32.0 million at March 31, 2023 decreased $763 thousand, or 2 percent, over the prior quarter and decreased $30.5 million, or 49 percent, over prior year first quarter. Non-performing assets as a percentage of subsidiary assets at March 31, 2023 was 0.12 percent compared to 0.12 percent in the prior quarter and 0.24 percent in the prior year first quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $24.9 million at March 31, 2023 increased $3.9 million from the prior quarter and increased $8.8 million from the prior year first quarter. Early stage delinquencies as a percentage of loans at March 31, 2023 was 16 basis points, which compared to 14 basis points in the prior quarter and 12 basis points from prior year first quarter.

The current quarter credit loss expense of $5.5 million included $6.3 million of credit loss expense from loans and $790 thousand of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at March 31, 2023 was 1.20 percent which was the same compared to the prior quarter and an 8 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 2023	$	6,260			$	1,939			1.20	%		0.16	%		0.12	%
Fourth quarter 2022		6,060				1,968			1.20	%		0.14	%		0.12	%
Third quarter 2022		8,382				3,154			1.20	%		0.07	%		0.13	%
Second quarter 2022		(1,353	)			1,843			1.20	%		0.12	%		0.16	%
First quarter 2022		4,344				850			1.28	%		0.12	%		0.24	%
Fourth quarter 2021		19,301				616			1.29	%		0.38	%		0.26	%
Third quarter 2021		2,313				152			1.36	%		0.23	%		0.24	%
Second quarter 2021		(5,723	)			(725	)		1.35	%		0.11	%		0.26	%

Net charge-offs for the current and prior quarter of $2.0 million compared to $850 thousand for the prior year first quarter. Net charge-offs of $2.0 million included $2.0 million in deposit overdraft net charge-offs and $31 thousand of net loan recoveries.

The current quarter provision for credit loss expense for loans was $6.3 million which was an increase of $200 thousand from the prior quarter and a $1.9 million increase from the prior year first quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

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

Liability Summary

											$ Change from
(Dollars in thousands)	Mar 31, 2023				Dec 31, 2022			Mar 31, 2022			Dec 31, 2022			Mar 31, 2022
Deposits
Non-interest bearing deposits	$	7,001,241			7,690,751			7,990,003			(689,510	)		(988,762	)
NOW and DDA accounts		5,156,709			5,330,614			5,376,881			(173,905	)		(220,172	)
Savings accounts		2,985,351			3,200,321			3,287,521			(214,970	)		(302,170	)
Money market deposit accounts		3,429,123			3,472,281			4,044,655			(43,158	)		(615,532	)
Certificate accounts		1,155,494			880,589			995,147			274,905			160,347
Core deposits, total		19,727,918			20,574,556			21,694,207			(846,638	)		(1,966,289	)
Wholesale deposits		420,390			31,999			3,688			388,391			416,702
Deposits, total		20,148,308			20,606,555			21,697,895			(458,247	)		(1,549,587	)
Repurchase agreements		1,191,323			945,916			958,479			245,407			232,844
Deposits and repurchase agreements, total		21,339,631			21,552,471			22,656,374			(212,840	)		(1,316,743	)
Federal Home Loan Bank advances		335,000			1,800,000			80,000			(1,465,000	)		255,000
FRB Bank Term Funding		2,740,000			—			—			2,740,000			2,740,000
Other borrowed funds		76,185			77,293			57,258			(1,108	)		18,927
Subordinated debentures		132,822			132,782			132,661			40			161
Other liabilities		251,892			229,524			239,838			22,368			12,054
Total liabilities	$	24,875,530			23,792,070			23,166,131			1,083,460			1,709,399

During the current quarter, the Company continued to focus on its diversified deposit and repurchase agreement product offerings. Total deposits and retail repurchase agreements of $21.340 billion at the current quarter end increased $289 million, or 1 percent, during March and decreased $213 million, or 1 percent, during the current quarter. Non-interest bearing deposits were 35 percent of total core deposits at March 31, 2023 compared to 37 percent at December 31, 2022 and March 31, 2022.

During the current quarter, the Company participated in the Bank Term Funding Program of the Federal Reserve Bank (“FRB”) which enabled the Company to pay off higher rate FHLB advances. The FHLB advances decreased $1.465 billion during the current quarter while FRB Bank Term funding increased $2.740 billion and was used to fund the FHLB pay down, support the additional $1.1 billion cash position and the current quarter decrease in deposits. The Company’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. The Company has available liquidity of $15.1 billion including cash, borrowing capacity from the FHLB and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.

Stockholders’ Equity Summary

											$ Change from
(Dollars in thousands, except per share data)	Mar 31, 2023				Dec 31, 2022			Mar 31, 2022			Dec 31, 2022			Mar 31, 2022
Common equity	$	3,337,132			3,312,097			3,182,002			25,035			155,130
Accumulated other comprehensive loss		(410,228	)		(468,792	)		(247,809	)		58,564			(162,419	)
Total stockholders’ equity		2,926,904			2,843,305			2,934,193			83,599			(7,289	)
Goodwill and core deposit intangible, net		(1,024,545	)		(1,026,994	)		(1,034,987	)		2,449			10,442
Tangible stockholders’ equity	$	1,902,359			1,816,311			1,899,206			86,048			3,153

Stockholders’ equity to total assets		10.53	%		10.67	%		11.24	%
Tangible stockholders’ equity to total tangible assets		7.10	%		7.09	%		7.58	%
Book value per common share	$	26.40			25.67			26.49			0.73			(0.09	)
Tangible book value per common share	$	17.16			16.40			17.15			0.76			0.01

Tangible stockholders’ equity of $1.902 billion at March 31, 2023 increased $86.0 million, or 5 percent, from the prior quarter which was primarily due to earnings retention and the decrease in the net unrealized loss (after-tax) on the AFS debt securities. Accumulated other comprehensive income (“AOCI”) includes the net unrealized loss (after-tax) on AFS debt securities. AOCI does not include $278 million of net unrealized loss on HTM debt securities. Tangible book value per common share of $17.16 at the current quarter end increased $0.76 per share, or 5 percent, from the prior quarter. The tangible book value per common share increased $0.01 per share from the prior year first quarter.

Cash Dividends
On March 29, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share The current quarter dividend of $0.33 per share was consistent with the dividend declared in the prior quarter and the prior year first quarter. The dividend was payable April 20, 2023 to shareholders of record on April 11, 2023. The dividend was the Company’s 152nd consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended March 31, 2023 
Compared to December 31, 2022, and March 31, 2022

Income Summary

	Three Months ended										$ Change from
(Dollars in thousands)	Mar 31, 2023				Dec 31, 2022			Mar 31, 2022			Dec 31, 2022			Mar 31, 2022
Net interest income
Interest income	$	231,888			225,085			190,516			6,803			41,372
Interest expense		45,696			21,026			4,961			24,670			40,735
Total net interest income		186,192			204,059			185,555			(17,867	)		637
Non-interest income
Service charges and other fees		17,771			18,734			17,111			(963	)		660
Miscellaneous loan fees and charges		3,967			3,905			3,555			62			412
Gain on sale of loans		2,400			2,175			9,015			225			(6,615	)
(Loss) gain on sale of investments		(114	)		519			446			(633	)		(560	)
Other income		3,871			3,150			3,436			721			435
Total non-interest income		27,895			28,483			33,563			(588	)		(5,668	)
Total income		214,087			232,542			219,118			(18,455	)		(5,031	)
Net interest margin (tax-equivalent)		3.08	%		3.30	%		3.20	%

Net Interest Income
The current quarter interest income of $232 million increased $6.8 million, or 3 percent, over the prior quarter and was driven primarily by the increase in the loan portfolio and an increase in loan yields. The current quarter interest income increased $41.4 million, or 22 percent, over the prior year first quarter also due to loan growth and increased loan yields.

The current quarter interest expense of $45.7 million increased $24.7 million, or 117 percent, over the prior quarter and increased $40.7 million, or 821 percent, over the prior year first quarter primarily the result of an increase in rates on deposits and borrowings along with increased use of borrowing programs. Core deposit cost (including non-interest bearing deposits) was 23 basis points for the current quarter compared to 8 basis points in the prior quarter and 7 basis points for the prior year first quarter. The total cost of funding (including non-interest bearing deposits) was 79 basis points in the current quarter compared to 35 basis points in the prior quarter and 9 basis points in the prior year first quarter which was the result of the increased deposit and borrowing rates.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.08 percent compared to 3.30 percent in the prior quarter and 3.20 percent in the prior year first quarter. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 3.07 percent compared to 3.27 percent in the prior quarter and 3.07 percent in the prior year first quarter. The core net interest margin decreased 20 basis points in the current quarter primarily as a result of increased deposit and borrowing rates. The loan yield of 5.02 percent in the current quarter increased 19 basis points from the prior quarter loan yield of 4.83 percent and increased 43 basis points from the prior year first quarter core loan yield of 4.59 percent. New loan production yields for the quarter were 6.96 percent.

Non-interest Income
Non-interest income for the current quarter totaled $27.9 million which was a decrease of $588 thousand, or 2 percent, over the prior quarter. Current quarter non-interest income decreased $5.7 million, or 17 percent, over the same quarter last year which was primarily driven by the decrease in gain on sale of residential loans. Gain on the sale of residential loans of $2.4 million for the current quarter increased $225 thousand, or 10 percent, compared to the prior quarter and decreased $6.6 million, or 73 percent, from the prior year first quarter.

Non-interest Expense Summary

	Three Months ended										$ Change from
(Dollars in thousands)	Mar 31, 2023				Dec 31, 2022			Mar 31, 2022			Dec 31, 2022			Mar 31, 2022
Compensation and employee benefits	$	81,477			79,814			79,074			1,663			2,403
Occupancy and equipment		11,665			10,734			10,964			931			701
Advertising and promotions		4,235			3,558			3,232			677			1,003
Data processing		8,109			8,079			7,475			30			634
Other real estate owned and foreclosed assets		12			5			—			7			12
Regulatory assessments and insurance		4,903			3,425			3,055			1,478			1,848
Core deposit intangibles amortization		2,449			2,664			2,664			(215	)		(215	)
Other expenses		22,132			20,700			23,844			1,432			(1,712	)
Total non-interest expense	$	134,982			128,979			130,308			6,003			4,674

Total non-interest expense of $135 million for the current quarter increased $6.0 million, or 5 percent, over the prior quarter and increased $4.7 million, or 4 percent, over the prior year first quarter. “In the current quarter, the Company has done well to limit the growth in its non-interest expense given the inflationary pressure across many expense areas,” said Ron Copher, Chief Financial Officer.

Compensation and employee expense of $81.5 million for the current quarter increased $1.7 million, or 2 percent, from the prior quarter and increased $2.4 million, or 3 percent, over the prior year first quarter which was driven primarily by annual salary increases. Regulatory assessments and insurance of $4.9 million, increased $1.5 million, or 43 percent, over the prior quarter and $1.8 million, or 60 percent, over the prior year first quarter and was primarily due to the FDIC uniformly increasing all depository institutions premiums in the current quarter. Other expense of $22.1 million in the current quarter increased $1.4 million, or 7 percent, over prior quarter due to a $2.5 million gain on sale of former branch in the prior quarter. Other expense in the current quarter decreased by $1.7 million, or 7 percent, over the prior year first quarter primarily as a result of a decrease in acquisition-related expense which was partially offset by increases in several miscellaneous expense categories. Acquisition-related expense was $352 thousand in the current quarter compared to $804 thousand in the prior quarter and $6.2 million in the prior year first quarter.

Federal and State Income Tax Expense
Tax expense during the first quarter of 2023 was $12.4 million, a decrease of $5.3 million, or 30 percent, compared to the prior quarter and a decrease of $1.6 million, or 11 percent, from the prior year first quarter. The effective tax rate in the current quarter was 16.9 percent compared to 18.2 percent in the prior quarter and 17.1 percent in the prior year first quarter.

Efficiency Ratio
The efficiency ratio was 60.39 percent in the current quarter compared to 53.18 percent in the prior quarter and 57.11 percent in the prior year first quarter. The increase from prior quarter and prior year first quarter was primarily attributable to the increase in interest expense and non-interest expense in the current quarter.

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 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 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 made in this news release:

• risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
• changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
• legislative or regulatory changes, including increased banking and consumer protection regulations, that may adversely affect the Company’s business;
• risks related to overall economic conditions, including the impact on the economy of a rising interest rate environment, inflationary pressures, and geopolitical instability, including the war in Ukraine;
• risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;
• costs or difficulties related to the completion and integration of acquisitions;
• impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
• reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
• deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company's ability to obtain and maintain customers;
• changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
• 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 through acquisitions;
• risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
• material failure, potential interruption or breach in security of the Company’s systems or changes in technological which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
• risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
• success in managing risks involved in the foregoing; and
• 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 21, 2023. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BIf72fb20b6829459481a06c788c220716. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/yix5vmcy. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.

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

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

(Dollars in thousands, except per share data)	Mar 31, 2023				Dec 31, 2022			Mar 31, 2022
Assets
Cash on hand and in banks	$	290,960			300,194			282,335
Interest bearing cash deposits		1,238,574			101,801			154,470
Cash and cash equivalents		1,529,534			401,995			436,805
Debt securities, available-for-sale		5,198,313			5,307,307			6,535,763
Debt securities, held-to-maturity		3,664,393			3,715,052			3,576,941
Total debt securities		8,862,706			9,022,359			10,112,704
Loans held for sale, at fair value		14,461			12,314			51,284
Loans receivable		15,518,612			15,246,812			13,731,019
Allowance for credit losses		(186,604	)		(182,283	)		(176,159	)
Loans receivable, net		15,332,008			15,064,529			13,554,860
Premises and equipment, net		399,740			398,100			373,123
Other real estate owned and foreclosed assets		31			32			43
Accrued interest receivable		90,642			83,538			81,467
Deferred tax asset		172,453			193,187			120,025
Core deposit intangible, net		39,152			41,601			49,594
Goodwill		985,393			985,393			985,393
Non-marketable equity securities		23,414			82,015			13,217
Bank-owned life insurance		168,235			169,068			167,298
Other assets		184,665			181,244			154,511
Total assets	$	27,802,434			26,635,375			26,100,324
Liabilities
Non-interest bearing deposits	$	7,001,241			7,690,751			7,990,003
Interest bearing deposits		13,147,067			12,915,804			13,707,892
Securities sold under agreements to repurchase		1,191,323			945,916			958,479
FHLB advances		335,000			1,800,000			80,000
FRB Bank Term Funding		2,740,000			—			—
Other borrowed funds		76,185			77,293			57,258
Subordinated debentures		132,822			132,782			132,661
Accrued interest payable		8,968			4,331			2,284
Other liabilities		242,924			225,193			237,554
Total liabilities		24,875,530			23,792,070			23,166,131
Commitments and Contingent Liabilities		—			—			—
Stockholders’ Equity
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding		—			—			—
Common stock, $0.01 par value per share, 234,000,000 shares authorized at March 31, 2023 and December 31, 2022 and 117,187,500 shares authorized at March 31, 2022		1,109			1,108			1,108
Paid-in capital		2,344,514			2,344,005			2,339,405
Retained earnings - substantially restricted		991,509			966,984			841,489
Accumulated other comprehensive loss		(410,228	)		(468,792	)		(247,809	)
Total stockholders’ equity		2,926,904			2,843,305			2,934,193
Total liabilities and stockholders’ equity	$	27,802,434			26,635,375			26,100,324

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

	Three Months ended
(Dollars in thousands, except per share data)	Mar 31, 2023				Dec 31, 2022			Mar 31, 2022
Interest Income
Investment securities	$	43,642			43,818			38,654
Residential real estate loans		15,838			14,964			15,515
Commercial loans		155,682			150,462			124,556
Consumer and other loans		16,726			15,841			11,791
Total interest income		231,888			225,085			190,516
Interest Expense
Deposits		12,545			4,642			3,464
Securities sold under agreements to repurchase		4,606			1,765			393
Federal Home Loan Bank advances		23,605			12,689			12
FRB Bank Term Funding		3,032			—			—
Other borrowed funds		496			464			220
Subordinated debentures		1,412			1,466			872
Total interest expense		45,696			21,026			4,961
Net Interest Income		186,192			204,059			185,555
Provision for credit losses		5,470			6,124			7,031
Net interest income after provision for credit losses		180,722			197,935			178,524
Non-Interest Income
Service charges and other fees		17,771			18,734			17,111
Miscellaneous loan fees and charges		3,967			3,905			3,555
Gain on sale of loans		2,400			2,175			9,015
(Loss) gain on sale of debt securities		(114	)		519			446
Other income		3,871			3,150			3,436
Total non-interest income		27,895			28,483			33,563
Non-Interest Expense
Compensation and employee benefits		81,477			79,814			79,074
Occupancy and equipment		11,665			10,734			10,964
Advertising and promotions		4,235			3,558			3,232
Data processing		8,109			8,079			7,475
Other real estate owned and foreclosed assets		12			5			—
Regulatory assessments and insurance		4,903			3,425			3,055
Core deposit intangibles amortization		2,449			2,664			2,664
Other expenses		22,132			20,700			23,844
Total non-interest expense		134,982			128,979			130,308
Income Before Income Taxes		73,635			97,439			81,779
Federal and state income tax expense		12,424			17,762			13,984
Net Income	$	61,211			79,677			67,795

Glacier Bancorp, Inc.
Average Balance Sheets

	Three Months ended
	March 31, 2023											December 31, 2022
(Dollars in thousands)	Average Balance				Interest & Dividends				Average Yield/ Rate			Average Balance				Interest & Dividends				Average Yield/ Rate
Assets
Residential real estate loans	$	1,493,938			$	15,838			4.24	%		$	1,424,550			$	14,964			4.20	%
Commercial loans 1		12,655,551				157,456			5.05	%			12,419,414				152,169			4.86	%
Consumer and other loans		1,207,315				16,726			5.62	%			1,183,727				15,841			5.31	%
Total loans 2		15,356,804				190,020			5.02	%			15,027,691				182,974			4.83	%
Tax-exempt debt securities 3		1,761,533				16,030			3.64	%			1,960,007				17,877			3.65	%
Taxable debt securities 4		8,052,662				31,084			1.54	%			8,200,203				29,717			1.45	%
Total earning assets		25,170,999				237,134			3.82	%			25,187,901				230,568			3.63	%
Goodwill and intangibles		1,025,716											1,028,277
Non-earning assets		478,962											436,260
Total assets	$	26,675,677										$	26,652,438
Liabilities
Non-interest bearing deposits	$	7,274,228			$	—			—	%		$	8,010,053			$	—			—	%
NOW and DDA accounts		5,080,175				2,271			0.18	%			5,388,062				1,077			0.08	%
Savings accounts		3,107,559				514			0.07	%			3,255,091				355			0.04	%
Money market deposit accounts		3,468,953				5,834			0.68	%			3,679,866				2,168			0.23	%
Certificate accounts		984,770				2,584			1.06	%			882,490				834			0.37	%
Total core deposits		19,915,685				11,203			0.23	%			21,215,562				4,434			0.08	%
Wholesale deposits 5		120,468				1,342			4.52	%			22,462				208			3.69	%
Repurchase agreements		1,035,582				4,606			1.80	%			873,819				1,765			0.80	%
FHLB advances		1,990,833				23,605			4.74	%			1,291,087				12,689			3.85	%
FRB Bank Term Funding		280,944				3,032			4.32	%			—				—			—	%
Subordinated debentures and other borrowed funds		209,547				1,908			3.69	%			211,953				1,930			3.61	%
Total funding liabilities		23,553,059				45,696			0.79	%			23,614,883				21,026			0.35	%
Other liabilities		217,245											252,298
Total liabilities		23,770,304											23,867,181
Stockholders’ Equity
Common stock		1,108											1,108
Paid-in capital		2,344,301											2,343,157
Retained earnings		998,340											946,195
Accumulated other comprehensive loss		(438,376	)										(505,203	)
Total stockholders’ equity		2,905,373											2,785,257
Total liabilities and stockholders’ equity	$	26,675,677										$	26,652,438
Net interest income (tax-equivalent)					$	191,438										$	209,542
Net interest spread (tax-equivalent)									3.03	%										3.28	%
Net interest margin (tax-equivalent)									3.08	%										3.30	%

______________________________
_{¹ Includes tax effect of $1.8 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2023 and December 31, 2022, respectively.
² Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
³ Includes tax effect of $3.3 million and $3.6 million on tax-exempt debt securities income for the three months ended March 31, 2023 and December 31, 2022, respectively.
⁴ Includes tax effect of $215 thousand and $225 thousand on federal income tax credits for the three months ended March 31, 2023 and December 31, 2022, respectively.
⁵ Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.}

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

	Three Months ended
	March 31, 2023											March 31, 2022
(Dollars in thousands)	Average Balance				Interest & Dividends				Average Yield/ Rate			Average Balance				Interest & Dividends				Average Yield/ Rate
Assets
Residential real estate loans	$	1,493,938			$	15,838			4.24	%		$	1,140,224			$	15,515			5.44	%
Commercial loans 1		12,655,551				157,456			5.05	%			11,318,767				125,919			4.51	%
Consumer and other loans		1,207,315				16,726			5.62	%			1,075,102				11,791			4.45	%
Total loans 2		15,356,804				190,020			5.02	%			13,534,093				153,225			4.59	%
Tax-exempt debt securities 3		1,761,533				16,030			3.64	%			1,723,125				15,664			3.64	%
Taxable debt securities 4		8,052,662				31,084			1.54	%			8,883,211				26,465			1.19	%
Total earning assets		25,170,999				237,134			3.82	%			24,140,429				195,354			3.28	%
Goodwill and intangibles		1,025,716											1,036,315
Non-earning assets		478,962											756,422
Total assets	$	26,675,677										$	25,933,166
Liabilities
Non-interest bearing deposits	$	7,274,228			$	—			—	%		$	7,859,706			$	—			—	%
NOW and DDA accounts		5,080,175				2,271			0.18	%			5,279,984				845			0.06	%
Savings accounts		3,107,559				514			0.07	%			3,246,512				332			0.04	%
Money market deposit accounts		3,468,953				5,834			0.68	%			4,030,795				1,381			0.14	%
Certificate accounts		984,770				2,584			1.06	%			1,019,595				897			0.36	%
Total core deposits		19,915,685				11,203			0.23	%			21,436,592				3,455			0.07	%
Wholesale deposits 5		120,468				1,342			4.52	%			17,191				9			0.22	%
Repurchase agreements		1,035,582				4,606			1.80	%			970,544				393			0.16	%
FHLB advances		1,990,833				23,605			4.74	%			15,000				12			0.33	%
FRB Bank Term Funding		280,944				3,032			4.32	%			—				—			—	%
Subordinated debentures and other borrowed funds		209,547				1,908			3.69	%			179,725				1,092			2.46	%
Total funding liabilities		23,553,059				45,696			0.79	%			22,619,052				4,961			0.09	%
Other liabilities		217,245											249,316
Total liabilities		23,770,304											22,868,368
Stockholders’ Equity
Common stock		1,108											1,107
Paid-in capital		2,344,301											2,338,887
Retained earnings		998,340											847,172
Accumulated other comprehensive loss		(438,376	)										(122,368	)
Total stockholders’ equity		2,905,373											3,064,798
Total liabilities and stockholders’ equity	$	26,675,677										$	25,933,166
Net interest income (tax-equivalent)					$	191,438										$	190,393
Net interest spread (tax-equivalent)									3.03	%										3.19	%
Net interest margin (tax-equivalent)									3.08	%										3.20	%

______________________________
_{¹ Includes tax effect of $1.8 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2023 and 2022, respectively.
² Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
³ Includes tax effect of $3.3 million and $3.3 million on tax-exempt debt securities income for the three months ended March 31, 2023 and 2022, respectively.
⁴ Includes tax effect of $215 thousand and $225 thousand on federal income tax credits for the three months ended March 31, 2023 and 2022, 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, 2023				Dec 31, 2022				Mar 31, 2022				Dec 31, 2022			Mar 31, 2022
Custom and owner occupied construction	$	295,604			$	298,461			$	265,579			(1	)%		11	%
Pre-sold and spec construction		312,715				297,895				258,429			5	%		21	%
Total residential construction		608,319				596,356				524,008			2	%		16	%
Land development		230,823				219,842				180,270			5	%		28	%
Consumer land or lots		187,498				206,604				184,217			(9	)%		2	%
Unimproved land		104,811				104,662				90,498			—	%		16	%
Developed lots for operative builders		69,896				60,987				61,276			15	%		14	%
Commercial lots		91,780				93,952				98,403			(2	)%		(7	)%
Other construction		965,244				938,406				833,218			3	%		16	%
Total land, lot, and other construction		1,650,052				1,624,453				1,447,882			2	%		14	%
Owner occupied		2,885,798				2,833,469				2,675,681			2	%		8	%
Non-owner occupied		3,631,158				3,531,673				3,190,519			3	%		14	%
Total commercial real estate		6,516,956				6,365,142				5,866,200			2	%		11	%
Commercial and industrial		1,353,919				1,377,888				1,378,500			(2	)%		(2	)%
Agriculture		715,863				735,553				731,248			(3	)%		(2	)%
1st lien		1,864,294				1,808,502				1,466,279			3	%		27	%
Junior lien		42,397				40,445				33,438			5	%		27	%
Total 1-4 family		1,906,691				1,848,947				1,499,717			3	%		27	%
Multifamily residential		649,148				622,185				545,483			4	%		19	%
Home equity lines of credit		893,037				872,899				753,362			2	%		19	%
Other consumer		224,125				220,035				207,827			2	%		8	%
Total consumer		1,117,162				1,092,934				961,189			2	%		16	%
States and political subdivisions		806,878				797,656				659,742			1	%		22	%
Other		208,085				198,012				168,334			5	%		24	%
Total loans receivable, including loans held for sale		15,533,073				15,259,126				13,782,303			2	%		13	%
Less loans held for sale 1		(14,461	)			(12,314	)			(51,284	)		17	%		(72	)%
Total loans receivable	$	15,518,612			$	15,246,812			$	13,731,019			2	%		13	%

______________________________
_{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, 2023				Dec 31, 2022			Mar 31, 2022			Mar 31, 2023			Mar 31, 2023			Mar 31, 2023
Custom and owner occupied construction	$	220			224			233			220			—			—
Pre-sold and spec construction		1,548			389			—			—			1,548			—
Total residential construction		1,768			613			233			220			1,548			—
Land development		129			138			240			129			—			—
Consumer land or lots		112			278			160			112			—			—
Unimproved land		51			78			128			51			—			—
Developed lots for operative builders		607			251			—			—			607			—
Commercial lots		188			—			—			141			47			—
Other construction		12,884			12,884			12,884			12,884			—			—
Total land, lot and other construction		13,971			13,629			13,412			13,317			654			—
Owner occupied		2,682			2,076			3,508			2,424			258			—
Non-owner occupied		4,544			805			1,526			4,539			5			—
Total commercial real estate		7,226			2,881			5,034			6,963			263			—
Commercial and Industrial		2,001			3,326			4,252			1,715			262			24
Agriculture		2,573			2,574			28,801			2,208			365			—
1st lien		2,015			2,678			2,015			1,950			65			—
Junior lien		111			166			301			105			6			—
Total 1-4 family		2,126			2,844			2,316			2,055			71			—
Multifamily residential		—			4,535			6,469			—			—			—
Home equity lines of credit		1,225			1,393			1,416			1,042			183			—
Other consumer		1,062			911			543			883			172			7
Total consumer		2,287			2,304			1,959			1,925			355			7
Other		27			36			—			—			27			—
Total	$	31,979			32,742			62,476			28,403			3,545			31

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, 2023				Dec 31, 2022				Mar 31, 2022				Dec 31, 2022			Mar 31, 2022
Custom and owner occupied construction	$	1,624			$	1,082			$	703			50	%		131	%
Pre-sold and spec construction		—				1,712				—			(100	)%		n/m
Total residential construction		1,624				2,794				703			(42	)%		131	%
Land development		946				—				317			n/m			198	%
Consumer land or lots		668				442				28			51	%		2,286	%
Unimproved land		—				120				—			(100	)%		n/m
Developed lots for operative builders		—				958				142			(100	)%		(100	)%
Commercial lots		—				47				54			(100	)%		(100	)%
Other construction		5,264				209				—			2,419	%		n/m
Total land, lot and other construction		6,878				1,776				541			287	%		1,171	%
Owner occupied		1,783				3,478				3,778			(49	)%		(53	)%
Non-owner occupied		429				496				266			(14	)%		61	%
Total commercial real estate		2,212				3,974				4,044			(44	)%		(45	)%
Commercial and industrial		3,677				3,439				3,275			7	%		12	%
Agriculture		947				1,367				162			(31	)%		485	%
1st lien		3,321				2,174				2,963			53	%		12	%
Junior lien		385				190				78			103	%		394	%
Total 1-4 family		3,706				2,364				3,041			57	%		22	%
Multifamily Residential		201				492				—			(59	)%		n/m
Home equity lines of credit		2,804				1,182				1,315			137	%		113	%
Other consumer		1,598				1,824				1,097			(12	)%		46	%
Total consumer		4,402				3,006				2,412			46	%		83	%
States and political subdivisions		—				28				21			(100	)%		(100	)%
Other		1,346				1,727				1,881			(22	)%		(28	)%
Total	$	24,993			$	20,967			$	16,080			19	%		55	%

______________________________
_{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, 2023				Dec 31, 2022			Mar 31, 2022			Mar 31, 2023			Mar 31, 2023
Custom and owner occupied construction	$	—			17			—			—			—
Pre-sold and spec construction		(4	)		(15	)		(4	)		—			4
Total residential construction		(4	)		2			(4	)		—			4
Land development		—			(34	)		(21	)		—			—
Consumer land or lots		—			(46	)		(10	)		—			—
Total land, lot and other construction		—			(80	)		(31	)		—			—
Owner occupied		(68	)		555			(386	)		—			68
Non-owner occupied		298			(242	)		(2	)		300			2
Total commercial real estate		230			313			(388	)		300			70
Commercial and industrial		(382	)		(70	)		(449	)		24			406
Agriculture		—			(7	)		(2	)		—			—
1st lien		44			(109	)		(9	)		47			3
Junior lien		(5	)		(302	)		(78	)		—			5
Total 1-4 family		39			(411	)		(87	)		47			8
Multifamily residential		—			136			—			—			—
Home equity lines of credit		(39	)		(91	)		(5	)		4			43
Other consumer		125			451			55			160			35
Total consumer		86			360			50			164			78
Other		1,970			7,572			1,761			2,758			788
Total	$	1,939			7,815			850			3,293			1,354

Visit our website at www.glacierbancorp.com

 

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

 

FAQ

What was Glacier Bancorp's net income in Q1 2023?

Glacier Bancorp reported a net income of $61.2 million for the first quarter of 2023.

How much did Glacier Bancorp increase its interest income by in Q1 2023?

Interest income increased by $41.4 million, or 22%, year-over-year to $232 million.

What was the diluted earnings per share for Glacier Bancorp in Q1 2023?

The diluted earnings per share for Glacier Bancorp in the first quarter of 2023 was $0.55.

What is the current dividend per share for Glacier Bancorp?

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

What is the current liquidity position of Glacier Bancorp?

Glacier Bancorp's available liquidity stands at $15.1 billion.