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Glacier Bancorp, Inc. (GBCI) SEC Filing 8-K Material Event for the period ending Thursday, October 21, 2021

Glacier Bancorp Inc

CIK: 868671 Ticker: GBCI

gbci_logoxstatesxmayx2019a.jpg

NEWS RELEASE
October 21, 2021
FOR IMMEDIATE RELEASECONTACT: Randall M. Chesler, CEO
(406) 751-4722
Ron J. Copher, CFO
(406) 751-7706

GLACIER BANCORP, INC. ANNOUNCES
RESULTS FOR THE QUARTER AND PERIOD ENDED SEPTEMBER 30, 2021

3rd Quarter 2021 Highlights:
The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, increased $382 million, or 14 percent annualized, in the current quarter.
Core deposits increased $742 million, or 18 percent annualized, during the current quarter.
Net interest income (tax-equivalent), excluding the PPP loans, of $154 million, increased $4.6 million, or 3 percent, over the prior quarter net interest income of $150 million.
Received $327 million in PPP loan forgiveness proceeds from the U.S. Small Business Administration (“SBA”) during the current quarter compared to $350 million in the prior quarter.
Declared a quarterly dividend of $0.32 per share. The Company has declared 146 consecutive quarterly dividends and has increased the dividend 48 times.
Completed the acquisition of Altabancorp, the parent company of Altabank, with total assets of $3.648 billion on October 1, 2021. Based in American Fork, Utah, Altabank is the largest community bank in Utah and is the Company’s 24th acquisition since 2000.

Year-to-Date 2021 Highlights:
The loan portfolio, excluding the PPP loans, increased $711 million, or 9 percent annualized, in the first nine months of 2021.
Core deposits increased $2.718 billion, or 25 percent annualized, during the first nine months of 2021.
Net income of $234 million for the first nine months of 2021, an increase of $49.5 million, or 27 percent, over the prior year first nine months net income of $185 million.
Diluted earnings per share of $2.45, an increase of 26 percent from the prior year first nine months diluted earnings per share of $1.95.
Net interest income (tax-equivalent), excluding the PPP loans, of $452 million, an increase of $22.5 million, or 5 percent, over the prior quarter net interest income of $430 million.
The Company funded 8,525 PPP loans in the amount of $555 million during the first half of 2021.
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The Company received $1.103 billion in PPP loan forgiveness proceeds from the U.S. Small Business Administration (“SBA”) during the first nine months of 2021.
Dividends declared in the first nine months of 2021 of $0.95 per share, an increase of $0.07 per share, or 8 percent, over the prior year dividends declared of $0.88 per share.
Financial Summary
 At or for the Three Months endedAt or for the Nine Months ended
(Dollars in thousands, except per share and market data)
Sep 30,
2021
Jun 30,
2021
Mar 31,
2021
Sep 30,
2020
Sep 30,
2021
Sep 30,
2020
Operating results
Net income$75,619 77,627 80,802 77,757 234,048 184,540 
Basic earnings per share$0.79 0.81 0.85 0.81 2.45 1.95 
Diluted earnings per share$0.79 0.81 0.85 0.81 2.45 1.95 
Dividends declared per share$0.32 0.32 0.31 0.30 0.95 0.88 
Market value per share
Closing$55.35 55.08 57.08 32.05 55.35 32.05 
High$56.84 63.05 67.35 38.13 67.35 46.54 
Low$48.62 52.99 44.55 30.05 44.55 26.66 
Selected ratios and other data
Number of common stock shares outstanding
95,512,65995,507,23495,501,81995,413,74395,512,65995,413,743
Average outstanding shares - basic95,510,77295,505,87795,465,80195,411,65695,494,21194,704,198
Average outstanding shares - diluted95,586,20295,580,90495,546,92295,442,57695,573,51994,747,894
Return on average assets (annualized)1.43 %1.55 %1.73 %1.80 %1.57 %1.56 %
Return on average equity (annualized)12.49 %13.25 %14.12 %13.73 %13.27 %11.40 %
Efficiency ratio50.17 %49.92 %46.75 %48.05 %48.94 %49.83 %
Dividend payout ratio40.51 %39.51 %36.47 %37.04 %38.78 %45.13 %
Loan to deposit ratio65.06 %67.64 %70.72 %82.29 %65.06 %82.29 %
Number of full time equivalent employees
2,9782,9872,9942,9462,9782,946
Number of locations194194193193194193
Number of ATMs250250250250250250


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KALISPELL, Mont., Oct 21, 2021 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $75.6 million for the current quarter, a decrease of $2.2 million, or 3 percent, from the $77.8 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.79 per share, a decrease of 2 percent from the prior year third quarter diluted earnings per share of $0.81. The decrease in third quarter earnings over the prior year was driven by a $21.6 million reduction in the gain on sale of residential mortgage loans due to record gains in the prior year. “The Glacier team produced very strong core loan and net interest income growth in the quarter,” said Randy Chesler, President and Chief Executive Officer. “We are excited to welcome the outstanding team at Altabank to the Glacier family and are well positioned to capitalize on our strengthening markets across the West.”

Net income for the nine months ended September 30, 2021 was $234 million, an increase of $49.5 million, or 27 percent, from the $185 million net income from the first nine months in the prior year. Diluted earnings per share for the first nine months of the current year was $2.45 per share, an increase of 26 percent, from the diluted earnings per share of $1.95 for the same period last year.

On October 1, 2021, the Company announced the completion of the acquisition of Altabancorp, the parent company of Altabank, based in American Fork, Utah (collectively, “Alta”) and the largest community bank in Utah. Alta provides banking services to individuals and businesses in Utah with twenty-five banking offices from Preston, Idaho to St. George, Utah. As of September 30, 2021, Alta had total assets of $3.648 billion, total loans of $1.901 billion and total deposits of $3.279 billion. Upon closing of the transaction, Alta became the Company’s seventeenth Bank division.

Asset Summary
$ Change from
(Dollars in thousands)Sep 30,
2021
Jun 30,
2021
Dec 31,
2020
Sep 30,
2020
Jun 30,
2021
Dec 31,
2020
Sep 30,
2020
Cash and cash equivalents$348,888 921,207 633,142 769,879 (572,319)(284,254)(420,991)
Debt securities, available-for-sale7,390,580 6,147,143 5,337,814 4,125,548 1,243,437 2,052,766 3,265,032 
Debt securities, held-to-maturity1,128,299 1,024,730 189,836 193,509 103,569 938,463 934,790 
Total debt securities8,518,879 7,171,873 5,527,650 4,319,057 1,347,006 2,991,229 4,199,822 
Loans receivable
Residential real estate781,538 734,838 802,508 862,614 46,700 (20,970)(81,076)
Commercial real estate6,912,569 6,584,322 6,315,895 6,201,817 328,247 596,674 710,752 
Other commercial2,598,616 2,932,419 3,054,817 3,593,322 (333,803)(456,201)(994,706)
Home equity660,920 648,800 636,405 646,850 12,120 24,515 14,070 
Other consumer340,248 337,669 313,071 314,128 2,579 27,177 26,120 
Loans receivable11,293,891 11,238,048 11,122,696 11,618,731 55,843 171,195 (324,840)
Allowance for credit losses
(153,609)(151,448)(158,243)(164,552)(2,161)4,634 10,943 
Loans receivable, net11,140,282 11,086,600 10,964,453 11,454,179 53,682 175,829 (313,897)
Other assets1,305,970 1,308,353 1,378,961 1,382,952 (2,383)(72,991)(76,982)
Total assets$21,314,019 20,488,033 18,504,206 17,926,067 825,986 2,809,813 3,387,952 

Total debt securities of $8.519 billion at September 30, 2021 increased $1.347 billion, or 19 percent, during the current quarter and increased $4.200 billion, or 97 percent, from the prior year third quarter. The Company continues to selectively purchase debt securities with excess liquidity from the increase in core deposits and SBA forgiveness of PPP loans. Debt securities represented 40 percent of total assets at September 30, 2021
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compared to 30 percent of total assets at December 30, 2020 and 24 percent of total assets at September 30, 2020.

The loan portfolio of $11.294 billion at September 30, 2021 increased $55.8 million, or 50 basis points, in the current quarter. Excluding the PPP loans, the loan portfolio increased $382 million, or 14 percent annualized, during the current quarter with the largest increase in commercial real estate which increased $328 million.

The loan portfolio decreased $325 million, or 3 percent, from the prior year third quarter. Excluding the PPP loans, the loan portfolio increased $755 million, or 7 percent, from the prior year third quarter with the largest increase in commercial real estate loans which increased $711 million, or 11 percent.

Credit Quality Summary
At or for the Nine Months endedAt or for the Six Months endedAt or for the Year endedAt or for the Nine Months ended
(Dollars in thousands)Sep 30,
2021
Jun 30,
2021
Dec 31,
2020
Sep 30,
2020
Allowance for credit losses
Balance at beginning of period$158,243 158,243 124,490 124,490 
Impact of adopting CECL— — 3,720 3,720 
Acquisitions— — 49 49 
Provision for credit losses(2,921)(5,234)37,637 39,165 
Charge-offs(8,566)(5,946)(13,808)(7,865)
Recoveries6,853 4,385 6,155 4,993 
Balance at end of period$153,609 151,448 158,243 164,552 
Provision for credit losses
Loan portfolio$(2,921)(5,234)37,637 39,165 
Unfunded loan commitments(1,959)(371)2,128 2,135 
Total provision for credit losses$(4,880)(5,605)39,765 41,300 
Other real estate owned$88 705 1,182 4,742 
Other foreclosed assets18 66 562 619 
Accruing loans 90 days or more past due5,172 4,220 1,725 2,952 
Non-accrual loans45,901 48,050 31,964 36,350 
Total non-performing assets$51,179 53,041 35,433 44,663 
Non-performing assets as a percentage of subsidiary assets
0.24 %0.26 %0.19 %0.25 %
Allowance for credit losses as a percentage of non-performing loans
301 %290 %470 %419 %
Allowance for credit losses as a percentage of total loans
1.36 %1.35 %1.42 %1.42 %
Net charge-offs as a percentage of total loans0.02 %0.01 %0.07 %0.03 %
Accruing loans 30-89 days past due$26,002 12,076 22,721 17,631 
Accruing troubled debt restructurings$36,666 37,667 42,003 39,999 
Non-accrual troubled debt restructurings$2,820 3,179 3,507 7,579 
U.S. government guarantees included in non-performing assets$4,116 4,186 3,011 4,411 

Non-performing assets of $51.2 million at September 30, 2021 decreased $1.9 million, or 4 percent, over the prior quarter. Non-performing assets increased $6.5 million, or 15 percent, over the prior year third quarter. Non-performing assets as a percentage of subsidiary assets at September 30, 2021 was 0.24 percent compared to 0.26 percent in the prior quarter and 0.25 percent in the prior year third quarter.
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Early stage delinquencies (accruing loans 30-89 days past due) of $26.0 million at September 30, 2021 increased $13.9 million from the prior quarter with a large portion of the increase primarily isolated to one credit relationship. Early stage delinquencies increased $8.4 million from the prior year third quarter. Early stage delinquencies as a percentage of loans at September 30, 2021 was 0.23 percent, which was an increase of 12 basis points from prior quarter and an 8 basis points increase from prior year third quarter.

The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at September 30, 2021 was 1.36 percent which was a 1 basis point increase compared to the prior quarter and a 6 basis point decrease from the prior year third quarter. Excluding the PPP loans, the ACL as percentage of loans was 1.40 percent compared to 1.43 percent in the prior quarter and 1.62 percent in the prior year third quarter. The decrease in the ACL as a percentage of total loans during the current year was driven by the improvement in the economic forecasts.

Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio
(Dollars in thousands)Provision for Credit Losses LoansNet 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
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 2021489 2,286 1.39 %0.40 %0.19 %
Fourth quarter 2020(1,528)4,781 1.42 %0.20 %0.19 %
Third quarter 20202,869 826 1.42 %0.15 %0.25 %
Second quarter 202013,552 1,233 1.42 %0.22 %0.27 %
First quarter 202022,744 813 1.49 %0.41 %0.26 %
Fourth quarter 2019— 1,045 1.31 %0.24 %0.27 %

The current quarter provision for credit loss expense for loans was $2.3 million which was an increase of $8.0 million from the prior quarter provision for credit loss benefit of $5.7 million and a $556 thousand decrease from the prior year third quarter provision for credit loss expense of $2.9 million. The increase in provision for credit losses for loans in the current quarter compared to the prior quarter was primarily driven by organic loan growth in the current quarter.

Net charge-offs for the current quarter were $152 thousand compared to net recoveries of $725 thousand for the prior quarter and net charge-offs $826 thousand from the same quarter last year. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 


5



PPP Loans

Three Months endedNine Months ended
(Dollars in thousands)Sep 30, 2021Jun 30, 2021Mar 31, 2021Sep 30, 2021Sep 30, 2020
PPP interest income $12,894 10,328 13,523 36,745 16,646 
Deferred compensation on originating PPP loans— 1,522 5,213 6,735 8,850 
       Total PPP income impact$12,894 11,850 18,736 43,480 25,496 

(Dollars in thousands)Sep 30, 2021Jun 30, 2021Dec 31, 2020Sep 30, 2020
PPP Round 1 loans$56,048 176,498 909,173 1,448,417 
PPP Round 2 loans312,865 518,107 — — 
       Total PPP loans368,913 694,605 909,173 1,448,417 
Net remaining fees - Round 1485 1,313 17,605 36,099 
Net remaining fees - Round 212,501 22,694 — — 
        Total net remaining fees$12,986 24,007 17,605 36,099 

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

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

The Company received $327 million in PPP loan forgiveness during the current quarter and received $1.103 billion in the first nine months of 2021. As of September 30, 2021, the Company had $56 million, or 4 percent of the $1.472 billion of Round 1 PPP loans originated in the prior year and had $313 million, or 56 percent of the $555 million of Round 2 PPP loans originated in the current year.

The Company recognized $12.9 million of interest income (including deferred fees and costs) from the Round 1 and Round 2 PPP loans in the current quarter. The income recognized in the current quarter included $10.5 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 September 30, 2021 were $13.0 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.

6


Liability Summary
$ Change from
(Dollars in thousands)Sep 30,
2021
Jun 30,
2021
Dec 31,
2020
Sep 30,
2020
Jun 30,
2021
Dec 31,
2020
Sep 30,
2020
Deposits
Non-interest bearing deposits$6,632,402 6,307,794 5,454,539 5,479,311 324,608 1,177,863 1,153,091 
NOW and DDA accounts4,299,244 4,151,264 3,698,559 3,300,152 147,980 600,685 999,092 
Savings accounts2,502,268 2,346,129 2,000,174 1,864,143 156,139 502,094 638,125 
Money market deposit accounts
3,123,425 2,990,021 2,627,336 2,557,294 133,404 496,089 566,131 
Certificate accounts919,852 939,563 978,779 979,857 (19,711)(58,927)(60,005)
Core deposits, total17,477,191 16,734,771 14,759,387 14,180,757 742,420 2,717,804 3,296,434 
Wholesale deposits26,123 26,121 38,142 119,131 (12,019)(93,008)
Deposits, total17,503,314 16,760,892 14,797,529 14,299,888 742,422 2,705,785 3,203,426 
Repurchase agreements1,040,939 995,201 1,004,583 965,668 45,738 36,356 75,271 
Federal Home Loan Bank advances
— — — 7,318 — — (7,318)
Other borrowed funds33,671 33,556 33,068 32,967 115 603 704 
Subordinated debentures132,580 132,540 139,959 139,918 40 (7,379)(7,338)
Other liabilities215,899 211,889 222,026 225,219 4,010 (6,127)(9,320)
Total liabilities$18,926,403 18,134,078 16,197,165 15,670,978 792,325 2,729,238 3,255,425 

Core deposits of $17.477 billion as of September 30, 2021 increased $742 million, or 18 percent annualized, from the prior quarter and increased $3.296 billion, or 23 percent, from the prior year third quarter. Non-interest bearing deposits of $6.632 billion as of September 30, 2021 increased $325 million, or 5 percent, from the prior quarter and increased $1.153 billion, or 21 percent, from the prior year third quarter. The unprecedented increase in deposits over the prior eighteen months resulted from a number of factors including the PPP loan proceeds deposited by customers, federal stimulus deposits and the increase in customer savings. Non-interest bearing deposits were 38 percent of total core deposits at September 30, 2021 compared to 37 percent of total core deposits at December 31, 2020 and 39 percent at September 30, 2020.

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

7



Stockholders’ Equity Summary
$ Change from
(Dollars in thousands, except per share data)
Sep 30,
2021
Jun 30,
2021
Dec 31,
2020
Sep 30,
2020
Jun 30,
2021
Dec 31,
2020
Sep 30,
2020
Common equity$2,309,957 2,263,513 2,163,951 2,123,991 46,444 146,006 185,966 
Accumulated other comprehensive income
77,659 90,442 143,090 131,098 (12,783)(65,431)(53,439)
Total stockholders’ equity
2,387,616 2,353,955 2,307,041 2,255,089 33,661 80,575 132,527 
Goodwill and core deposit intangible, net
(562,058)(564,546)(569,522)(572,134)2,488 7,464 10,076 
Tangible stockholders’ equity
$1,825,558 1,789,409 1,737,519 1,682,955 36,149 88,039 142,603 
Stockholders’ equity to total assets
11.20 %11.49 %12.47 %12.58 %
Tangible stockholders’ equity to total tangible assets
8.80 %8.98 %9.69 %9.70 %
Book value per common share
$25.00 24.65 24.18 23.63 0.35 0.82 1.37 
Tangible book value per common share
$19.11 18.74 18.21 17.64 0.37 0.90 1.47 

Tangible stockholders’ equity of $1.826 billion at September 30, 2021 increased $36.1 million, or 2 percent, from the prior quarter and increased $143 million, or 8 percent, from the prior year third quarter and was due to earnings retention that more than offset the decrease in other comprehensive income. The current year decrease in both the stockholders’ equity to total assets ratio and the tangible stockholders’ equity to tangible assets was the result of the $2.991 billion increase in debt securities driven primarily by the significant influx of deposits during the current year. Tangible book value per common share of $19.11 at the current quarter end increased $0.37 per share, or 2 percent, from the prior quarter and increased $1.47 per share, or 8 percent, from a year ago.

Cash Dividends
On September 30, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.32 per share. The dividend was payable October 21, 2021 to shareholders of record on October 12, 2021. The dividend was the 146th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

8



Operating Results for Three Months Ended September 30, 2021 
Compared to June 30, 2021, March 31, 2021, and September 30, 2020
Income Summary
 Three Months ended $ Change from
(Dollars in thousands)Sep 30,
2021
Jun 30,
2021
Mar 31,
2021
Sep 30,
2020
Jun 30,
2021
Mar 31,
2021
Sep 30,
2020
Net interest income
Interest income$166,741 159,956 161,552 157,487 6,785 5,189 9,254 
Interest expense4,128 4,487 4,740 6,084 (359)(612)(1,956)
Total net interest income162,613 155,469 156,812 151,403 7,144 5,801 11,210 
Non-interest income
Service charges and other fees
15,154 13,795 12,792 13,404 1,359 2,362 1,750 
Miscellaneous loan fees and charges2,592 2,923 2,778 2,084 (331)(186)508 
Gain on sale of loans13,902 16,106 21,624 35,516 (2,204)(7,722)(21,614)
(Loss) gain on sale of investments(168)(61)284 24 (107)(452)(192)
Other income3,335 2,759 2,643 2,639 576 692 696 
Total non-interest income34,815 35,522 40,121 53,667 (707)(5,306)(18,852)
Total income197,428 190,991 196,933 205,070 6,437 495 (7,642)
Net interest margin (tax-equivalent)
3.39 %3.44 %3.74 %3.92 %

Net Interest Income
The current quarter net interest income of $163 million increased $7.1 million, or 5 percent, over the prior quarter and increased $11.2 million, or 7 percent, from the prior year third quarter. The current quarter interest income of $167 million increased $6.8 million, or 4 percent, compared to the prior quarter and increased $9.3 million, or 6 percent, over the prior year third quarter due to an increase in interest income from the PPP loans and debt securities. The interest income (which included deferred fees and deferred costs) from the PPP loans was $12.9 million in the current quarter and $10.3 million in the prior quarter and $9.3 million in the prior year third quarter. Excluding the PPP loans, net interest income was $150 million in the current quarter compared to $145 million in the prior quarter and $142 million in the prior year third quarter.

The current quarter interest expense of $4.1 million decreased $359 thousand, or 8 percent, over the prior quarter and decreased $2.0 million, or 32 percent, over the prior year third quarter primarily as result of a decrease in deposit rates. During the current quarter, the total cost of funding (including non-interest bearing deposits) of 9 basis points declined 1 basis points from the prior quarter and declined 7 basis points from the prior year third quarter with both decreases driven by a decrease in rates in deposits and borrowings.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.39 percent compared to 3.44 percent in the prior quarter and 3.92 in the prior year third quarter. The core net interest margin, excluding 2 basis points of discount accretion, 2 basis point from non-accrual interest and 18 basis points increase from the PPP loans, was 3.17 percent compared to 3.33 in the prior quarter and 4.02 percent in the prior year third quarter. The core net interest margin decreased 16 basis points in the current quarter and decreased 85 basis points from the prior third quarter due to a decrease in earning asset yields. Earning asset yields have decreased due to the combined impact of the significant increase in the debt securities and the lower yields on both core loans and debt securities. Debt securities comprised 42.5 percent of the earning assets during the current quarter compared to 39.4 percent in the prior quarter and 26.5 percent in the prior year third quarter.
9


Non-interest Income
Non-interest income for the current quarter totaled $34.8 million which was a decrease of $707 thousand, or 2 percent, over the prior quarter and a decrease of $18.9 million, or 35 percent, over the same quarter last year. Service charges and other fees increased $1.4 million from the prior quarter and increased $1.8 million from the prior year third quarter as a result of increased customer accounts and transaction activity.

Gain on the sale of loans of $13.9 million for the current quarter decreased $2.2 million, or 14 percent, compared to the prior quarter and decreased $21.6 million, or 61 percent, from the prior year third quarter. The current quarter mortgage activity was lower than prior periods, but still remained at historically strong levels.

Non-interest Expense Summary
 Three Months ended $ Change from
(Dollars in thousands)Sep 30,
2021
Jun 30,
2021
Mar 31,
2021
Sep 30,
2020
Jun 30,
2021
Mar 31,
2021
Sep 30,
2020
Compensation and employee benefits$66,364 64,109 62,468 64,866 2,255 3,896 1,498 
Occupancy and equipment9,412 9,208 9,515 9,369 204 (103)43 
Advertising and promotions3,236 2,906 2,371 2,779 330 865 457 
Data processing5,135 5,661 5,206 5,597 (526)(71)(462)
Other real estate owned and foreclosed
     assets
142 48 12 186 94 130 (44)
Regulatory assessments and insurance2,011 1,702 1,879 1,495 309 132 516 
Core deposit intangibles amortization2,488 2,488 2,488 2,612 — — (124)
Other expenses15,320 13,960 12,646 16,469 1,360 2,674 (1,149)
Total non-interest expense$104,108 100,082 96,585 103,373 4,026 7,523 735 

Total non-interest expense of $104 million for the current quarter increased $4.0 million, or 4 percent, over the prior quarter and increased $735 thousand, or 71 basis points, over the prior year third quarter. Compensation and employee benefits increased $2.3 million, or 4 percent, from the prior quarter and increased $1.5 million from the prior year third quarter.

Other expenses of $15.3 million, increased $1.4 million, or 10 percent, from the prior quarter and decreased $1.1 million, or 7 percent, from the prior year third quarter. Current quarter other expenses included acquisition-related expenses of $472 thousand compared to $1.1 million in the prior quarter and $793 thousand in the prior year third quarter.

Federal and State Income Tax Expense
Tax expense during the third quarter of 2021 was $17.0 million, a decrease of $2.0 million, or 10 percent, compared to the prior quarter and a decrease of $1.8 million, or 9 percent, from the prior year third quarter. The effective tax rate in the current quarter was 18.3 compared to 19.6 in the prior quarter and 19.4 percent in the prior year third quarter.

10


Efficiency Ratio
The efficiency ratio was 50.17 percent in the current quarter and 49.92 percent in the prior quarter and 48.05 in the prior year third quarter. “The Bank divisions are making do with less as increased hiring has taken longer as the markets get back to normal,” said Ron Copher, Chief Financial Officer. “Controlling non-interest expense growth has helped the Company maintain an efficiency ratio below 50 percent for the nine months of the current and prior year.” Excluding the impact from the PPP loans, the efficiency ratio would have been 53.59 percent in the current quarter compared to 53.53 percent in the prior quarter. Excluding the impact of PPP loans, the current quarter efficiency ratio was an increase of 308 basis points from the prior year third quarter efficiency ratio of 50.51 percent which was primarily driven by the decrease in the gain on sale of loans in the current quarter.

Operating Results for Nine Months Ended September 30, 2021
Compared to September 30, 2020

Income Summary
Nine Months ended
(Dollars in thousands)Sep 30,
2021
Sep 30,
2020
$ Change% Change
Net interest income
Interest income$488,249 $455,756 $32,493 %
Interest expense13,355 21,765 (8,410)(39)%
Total net interest income474,894 433,991 40,903 %
Non-interest income
Service charges and other fees41,741 38,790 2,951 %
Miscellaneous loan fees and charges8,293 5,051 3,242 64 %
Gain on sale of loans51,632 73,236 (21,604)(29)%
Gain on sale of investments55 1,015 (960)(95)%
Other income8,737 10,071 (1,334)(13)%
Total non-interest income110,458 128,163 (17,705)(14)%
Total Income$585,352 $562,154 $23,198 %
Net interest margin (tax-equivalent)3.52 %4.12 %

Net Interest Income
Net-interest income of $475 million for the first nine months of 2021 increased $40.9 million, or 9 percent, over the same period in 2020. Interest income of $488 million for the first nine months of the current year increased $32.5 million, or 7 percent, from the prior year and was primarily attributable to a $25.4 million increase in income from commercial loans, including $20.1 million from the PPP loans. Additionally, interest income on debt securities increased $14.2 million, or 20 percent, over the prior year which resulted from the increased volume of debt securities. Interest expense of $13.4 million for the first nine months of 2021 decreased $8.4 million, or 39 percent over the prior year primarily as a result of a decrease in the cost of deposits. The total funding cost (including non-interest bearing deposits) for the first nine months of 2021 was 10 basis points, which decreased 12 basis points compared to 22 basis points in first nine months of 2020.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first nine months of 2021 was 3.52 percent, a 60 basis points decrease from the net interest margin of 4.12 percent for the same period in the prior year. The core net interest margin, excluding 3 basis points of discount accretion, 1 basis point of non-accrual interest and 13 basis points increase from the PPP loans, was 3.35 which was an 85 basis point decrease from the core margin of 4.20 percent in the prior year. Although the Company was successful in
11


reducing the total cost of funding, it was not enough to outpace the lower yields on core loans and debt securities driven by the current interest rate environment and the shift in the earning asset mix to lower yielding debt securities.

Non-interest Income
Non-interest income of $110 million for the first nine months of 2021 decreased $17.7 million, or 14 percent, over the same period last year. Service charges and other fees of $41.7 million for the first nine months of 2021 increased $3.0 million, or 8 percent, from prior year as a result of additional fees from increased customer accounts and transaction activity. Miscellaneous loan fees and charges of $8.3 million increased $3.2 million, or 64 percent, driven by increases in loan servicing income and credit card interchange fees due to increased activity. Gain on the sale of loans of $51.6 million for the first nine months of 2021 decreased $21.6 million, or 29 percent, compared to the same period last year which was the result of the anticipated slowing of purchase and refinance activity after the historically high levels in the prior year. Other income of $8.7 million decreased $1.3 million from the prior year and was primarily the result of a gain of $2.4 million on the sale of a former branch building in the first quarter of 2020.

Non-interest Expense Summary
Nine Months ended
(Dollars in thousands)Sep 30,
2021
Sep 30,
2020
$ Change% Change
Compensation and employee benefits$192,941 $182,507 $10,434 %
Occupancy and equipment28,135 27,945 190 %
Advertising and promotions8,513 7,404 1,109 15 %
Data processing16,002 15,921 81 %
Other real estate owned and foreclosed assets202 373 (171)(46)%
Regulatory assessments and insurance5,592 3,622 1,970 54 %
Core deposit intangibles amortization7,464 7,758 (294)(4)%
Other expenses41,926 48,094 (6,168)(13)%
Total non-interest expense$300,775 $293,624 $7,151 %

Total non-interest expense of $301 million for the first nine months of 2021 increased $7.2 million, or 2 percent, over the prior year same period. Compensation and employee benefits for the first nine months of 2021 increased $10.4 million, or 6 percent, from last year due to the increased number of employees from organic growth, increased performance-related compensation and annual salary increases. Advertising and promotions for the first nine months of 2021 increased $1.1 million, or 15 percent, from the prior year. Regulatory assessment and insurance for the first nine months of 2021 increased $2.0 million from the prior year same period primarily as a result of the State of Montana waiving the first semi-annual regulatory assessment of 2020 and Small Bank assessment credits applied by the FDIC in the first quarter of 2020. Other expenses of $41.9 million, decreased $6.2 million, or 13 percent, from the prior year, primarily from a decrease in acquisition-related expenses. Acquisition-related expenses were $1.7 million in the current year compared to $7.3 million in the prior year.

Provision for Credit Losses
The provision for credit loss benefit was $4.9 million for the first nine months of 2021, including provision for credit loss benefit of $2.9 million on the loan portfolio and credit loss benefit of $2.0 million on unfunded loan commitments. The provision for credit loss benefit of $2.9 million on the loan portfolio in the current year decreased $42.1 million over the provision for credit loss expense of $39.2 million in the prior year which was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the current year were $1.7 million compared to $2.9 million during the prior year.
12


Federal and State Income Tax Expense
Tax expense of $55.4 million in the first nine months of 2021 increased $12.7 million, or 30 percent, over the prior year same period. The effective tax rate for the first nine months of 2021 was 19.1 percent compared to 18.8 percent in the prior year same period.

Efficiency Ratio
The efficiency ratio was 48.94 percent for the first nine months of 2021 compared to 49.83 percent for the same period last year. Excluding the impact from the PPP loans, the efficiency ratio was 53.34 in 2021 compared to 53.30 in 2020.

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

the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio;
changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability;
changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties;
legislative or regulatory changes, such as the those signaled by the Biden Administration, as well as increased banking and consumer protection regulation that adversely affect the Company’s business, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
ability to complete pending or prospective future acquisitions;
costs or difficulties related to the completion and integration of acquisitions;
the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
reduced demand for banking products and services;
the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
competition among financial institutions in the Company's markets may increase significantly;
the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
13


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, October 22, 2021. 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 9278886. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/y8hi69ox. 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 9278886 by October 29, 2021.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. (NASDAQ:GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions 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).



14


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)Sep 30,
2021
Jun 30,
2021
Dec 31,
2020
Sep 30,
2020
Assets
Cash on hand and in banks$250,579 272,363 227,108 249,245 
Federal funds sold— — — 590 
Interest bearing cash deposits98,309 648,844 406,034 520,044 
Cash and cash equivalents348,888 921,207 633,142 769,879 
Debt securities, available-for-sale7,390,580 6,147,143 5,337,814 4,125,548 
Debt securities, held-to-maturity1,128,299 1,024,730 189,836 193,509 
Total debt securities8,518,879 7,171,873 5,527,650 4,319,057 
Loans held for sale, at fair value94,138 98,410 166,572 147,937 
Loans receivable11,293,891 11,238,048 11,122,696 11,618,731 
Allowance for credit losses(153,609)(151,448)(158,243)(164,552)
Loans receivable, net11,140,282 11,086,600 10,964,453 11,454,179 
Premises and equipment, net316,191 315,573 325,335 326,925 
Other real estate owned and foreclosed assets106 771 1,744 5,361 
Accrued interest receivable79,699 70,452 75,497 91,393 
Core deposit intangible, net48,045 50,533 55,509 58,121 
Goodwill514,013 514,013 514,013 514,013 
Non-marketable equity securities10,021 10,019 10,023 10,366 
Bank-owned life insurance123,729 123,035 123,763 123,095 
Other assets120,028 125,547 106,505 105,741 
Total assets$21,314,019 20,488,033 18,504,206 17,926,067 
Liabilities
Non-interest bearing deposits$6,632,402 6,307,794 5,454,539 5,479,311 
Interest bearing deposits10,870,912 10,453,098 9,342,990 8,820,577 
Securities sold under agreements to repurchase1,040,939 995,201 1,004,583 965,668 
FHLB advances— — — 7,318 
Other borrowed funds33,671 33,556 33,068 32,967 
Subordinated debentures132,580 132,540 139,959 139,918 
Accrued interest payable2,437 2,433 3,305 3,951 
Deferred tax liability1,815 6,463 23,860 17,227 
Other liabilities211,647 202,993 194,861 204,041 
Total liabilities18,926,403 18,134,078 16,197,165 15,670,978 
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
955 955 954 954 
Paid-in capital1,497,939 1,496,488 1,495,053 1,493,928 
Retained earnings - substantially restricted811,063 766,070 667,944 629,109 
Accumulated other comprehensive income77,659 90,442 143,090 131,098 
Total stockholders’ equity2,387,616 2,353,955 2,307,041 2,255,089 
Total liabilities and stockholders’ equity$21,314,019 20,488,033 18,504,206 17,926,067 

15


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 Three Months endedNine Months ended
(Dollars in thousands, except per share data)Sep 30,
2021
Jun 30,
2021
Mar 31,
2021
Sep 30,
2020
Sep 30,
2021
Sep 30,
2020
Interest Income
Debt securities$30,352 28,730 27,306 25,381 86,388 72,228 
Residential real estate loans9,885 9,541 10,146 11,592 29,572 35,216 
Commercial loans115,533 110,829 113,541 109,514 339,903 314,541 
Consumer and other loans10,971 10,856 10,559 11,000 32,386 33,771 
Total interest income166,741 159,956 161,552 157,487 488,249 455,756 
Interest Expense
Deposits2,609 2,804 3,014 3,952 8,427 14,120 
Securities sold under agreements to
  repurchase
496 651 689 886 1,836 2,783 
Federal Home Loan Bank advances— — — 70 — 684 
Other borrowed funds
178 177 174 173 529 473 
Subordinated debentures845 855 863 1,003 2,563 3,705 
Total interest expense4,128 4,487 4,740 6,084 13,355 21,765 
Net Interest Income162,613 155,469 156,812 151,403 474,894 433,991 
Provision for credit losses725 (5,653)48 5,186 (4,880)41,300 
Net interest income after provision for credit losses
161,888 161,122 156,764 146,217 479,774 392,691 
Non-Interest Income
Service charges and other fees15,154 13,795 12,792 13,404 41,741 38,790 
Miscellaneous loan fees and charges2,592 2,923 2,778 2,084 8,293 5,051 
Gain on sale of loans13,902 16,106 21,624 35,516 51,632 73,236 
(Loss) gain on sale of debt securities(168)(61)284 24 55 1,015 
Other income3,335 2,759 2,643 2,639 8,737 10,071 
Total non-interest income34,815 35,522 40,121 53,667 110,458 128,163 
Non-Interest Expense
Compensation and employee benefits66,364 64,109 62,468 64,866 192,941 182,507 
Occupancy and equipment9,412 9,208 9,515 9,369 28,135 27,945 
Advertising and promotions3,236 2,906 2,371 2,779 8,513 7,404 
Data processing5,135 5,661 5,206 5,597 16,002 15,921 
Other real estate owned and foreclosed
  assets
142 48 12 186 202 373 
Regulatory assessments and insurance
2,011 1,702 1,879 1,495 5,592 3,622 
Core deposit intangibles amortization2,488 2,488 2,488 2,612 7,464 7,758 
Other expenses15,320 13,960 12,646 16,469 41,926 48,094 
Total non-interest expense104,108 100,082 96,585 103,373 300,775 293,624 
Income Before Income Taxes92,595 96,562 100,300 96,511 289,457 227,230 
Federal and state income tax expense16,976 18,935 19,498 18,754 55,409 42,690 
Net Income$75,619 77,627 80,802 77,757 234,048 184,540 

16


Glacier Bancorp, Inc.
Average Balance Sheets
Three Months ended
September 30, 2021June 30, 2021
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$817,150 $9,885 4.84 %$825,467 $9,541 4.62 %
Commercial loans 1
9,468,440 116,963 4.90 %9,520,603 112,226 4.73 %
Consumer and other loans974,582 10,971 4.47 %964,415 10,856 4.51 %
Total loans 2
11,260,172 137,819 4.86 %11,310,485 132,623 4.70 %
Tax-exempt debt securities 2
1,548,447 14,711 3.80 %1,548,323 14,740 3.81 %
Taxable debt securities 4
6,767,418 18,896 1.12 %5,810,800 17,251 1.19 %
Total earning assets19,576,037 171,426 3.47 %18,669,608 164,614 3.54 %
Goodwill and intangibles563,257 565,749 
Non-earning assets803,226 804,897 
Total assets$20,942,520 $20,040,254 
Liabilities
Non-interest bearing deposits$6,505,530 $— — %$6,100,872 $— — %
NOW and DDA accounts4,261,648 597 0.06 %4,073,819 600 0.06 %
Savings accounts2,440,332 146 0.02 %2,295,334 141 0.02 %
Money market deposit accounts3,041,634 814 0.11 %2,921,642 861 0.12 %
Certificate accounts928,165 1,036 0.44 %955,694 1,181 0.50 %
Total core deposits17,177,309 2,593 0.06 %16,347,361 2,783 0.07 %
Wholesale deposits 5
26,117 16 0.24 %34,301 21 0.24 %
Repurchase agreements988,283 495 0.20 %974,744 651 0.27 %
Subordinated debentures and other borrowed funds166,151 1,024 2.44 %166,002 1,032 2.49 %
Total funding liabilities18,357,860 4,128 0.09 %17,522,408 4,487 0.10 %
Other liabilities182,573 168,613 
Total liabilities18,540,433 17,691,021 
Stockholders’ Equity
Common stock955 955 
Paid-in capital1,497,107 1,495,886 
Retained earnings805,253 756,561 
Accumulated other comprehensive income98,772 95,831 
Total stockholders’ equity2,402,087 2,349,233 
Total liabilities and stockholders’ equity$20,942,520 $20,040,254 
Net interest income (tax-equivalent)$167,298 $160,127 
Net interest spread (tax-equivalent)3.38 %3.44 %
Net interest margin (tax-equivalent)3.39 %3.44 %
______________________________
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 September 30, 2021 and June 30, 2021, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.0 million and $3.0 million on tax-exempt debt securities income for the three months ended September 30, 2021 and June 30, 2021, respectively.
4 Includes tax effect of $255 thousand and $255 thousand on federal income tax credits for the three months ended September 30, 2021 and June 30, 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

17


Glacier Bancorp, Inc.
Average Balance Sheets (continued)
Three Months ended
 September 30, 2021September 30, 2020
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$817,150 $9,885 4.84 %$1,010,503 $11,592 4.59 %
Commercial loans 1
9,468,440 116,963 4.90 %9,636,631 110,847 4.58 %
Consumer and other loans974,582 10,971 4.47 %957,284 11,000 4.57 %
Total loans 2
11,260,172 137,819 4.86 %11,604,418 133,439 4.57 %
Tax-exempt debt securities 3
1,548,447 14,711 3.80 %1,379,577 13,885 4.03 %
Taxable debt securities 4
6,767,418 18,896 1.12 %2,809,545 14,568 2.07 %
Total earning assets19,576,037 171,426 3.47 %15,793,540 161,892 4.08 %
Goodwill and intangibles563,257 572,759 
Non-earning assets803,226 794,165 
Total assets$20,942,520 $17,160,464 
Liabilities
Non-interest bearing deposits$6,505,530 $— — %$5,171,984 $— — %
NOW and DDA accounts4,261,648 597 0.06 %3,218,536 642 0.08 %
Savings accounts2,440,332 146 0.02 %1,804,438 166 0.04 %
Money market deposit accounts3,041,634 814 0.11 %2,453,659 1,161 0.19 %
Certificate accounts928,165 1,036 0.44 %981,385 1,936 0.78 %
Total core deposits17,177,309 2,593 0.06 %13,630,002 3,905 0.11 %
Wholesale deposits 5
26,117 16 0.24 %86,852 47 0.22 %
Repurchase agreements988,283 495 0.20 %1,049,002 2,062 0.78 %
FHLB advances— — — %21,273 70 1.30 %
Subordinated debentures and other borrowed funds166,151 1,024 2.44 %— — — %
Total funding liabilities18,357,860 4,128 0.09 %14,787,129 6,084 0.16 %
Other liabilities182,573 120,294 
Total liabilities18,540,433 14,907,423 
Stockholders’ Equity
Common stock955 954 
Paid-in capital1,497,107 1,493,353 
Retained earnings805,253 622,099 
Accumulated other comprehensive income
98,772 136,635 
Total stockholders’ equity2,402,087 2,253,041 
Total liabilities and stockholders’ equity
$20,942,520 $17,160,464 
Net interest income (tax-equivalent)$167,298 $155,808 
Net interest spread (tax-equivalent)3.38 %3.92 %
Net interest margin (tax-equivalent)3.39 %3.92 %
______________________________
1 Includes tax effect of $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2021 and 2020, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.0 million and $2.8 million on tax-exempt debt securities income for the three months ended September 30, 2021 and 2020, respectively.
4 Includes tax effect of $255 thousand and $266 thousand on federal income tax credits for the three months ended September 30, 2021 and 2020, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


18


Glacier Bancorp, Inc.
Average Balance Sheets (continued)
Nine Months ended
 September 30, 2021September 30, 2020
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$844,945 $29,572 4.67 %$1,013,072 $35,216 4.63 %
Commercial loans 1
9,467,329 344,117 4.86 %8,896,708 318,435 4.78 %
Consumer and other loans963,002 32,386 4.50 %947,372 33,771 4.76 %
Total loans 2
11,275,276 406,075 4.82 %10,857,152 387,422 4.77 %
Tax-exempt debt securities 3
1,547,429 44,162 3.81 %1,237,779 37,542 4.04 %
Taxable debt securities 4
5,771,573 51,998 1.20 %2,380,184 43,070 2.41 %
Total earning assets18,594,278 502,235 3.61 %14,475,115 468,034 4.32 %
Goodwill and intangibles565,724 562,533 
Non-earning assets816,982 760,758 
Total assets$19,976,984 $15,798,406 
Liabilities
Non-interest bearing deposits$6,069,326 $— — %$4,528,500 $— — %
NOW and DDA accounts4,057,019 1,768 0.06 %2,971,702 2,244 0.10 %
Savings accounts2,277,335 425 0.02 %1,670,722 580 0.05 %
Money market deposit accounts2,895,362 2,540 0.12 %2,262,781 4,025 0.24 %
Certificate accounts951,655 3,640 0.51 %986,807 6,940 0.94 %
Total core deposits16,250,697 8,373 0.07 %12,420,512 13,789 0.15 %
Wholesale deposits 5
32,787 55 0.22 %70,880 332 0.63 %
Repurchase agreements988,092 1,835 0.25 %892,418 6,960 1.04 %
FHLB advances— — — %103,700 684 0.87 %
Subordinated debentures and other borrowed funds165,996 3,092 2.49 %— — — %
Total funding liabilities17,437,572 13,355 0.10 %13,487,510 21,765 0.22 %
Other liabilities181,640 149,423 
Total liabilities17,619,212 13,636,933 
Stockholders’ Equity
Common stock955 947 
Paid-in capital1,496,051 1,467,623 
Retained earnings757,666 586,963 
Accumulated other comprehensive income
103,100 105,940 
Total stockholders’ equity2,357,772 2,161,473 
Total liabilities and stockholders’ equity
$19,976,984 $15,798,406 
Net interest income (tax-equivalent)$488,880 $446,269 
Net interest spread (tax-equivalent)3.51 %4.10