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Glacier Bancorp, Inc. (GBCI) SEC Filing 8-K Material Event for the period ending Thursday, January 27, 2022

Glacier Bancorp Inc

CIK: 868671 Ticker: GBCI

gbci_logoxstatesxmayx2019.jpg

NEWS RELEASE
January 27, 2022
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 YEAR ENDED DECEMBER 31, 2021

4th Quarter 2021 Highlights:
Net interest income, on a tax-equivalent basis, excluding the PPP loans, of $184 million, increased $29.4 million, or 19 percent, over the prior quarter net interest income of $154 million.
The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, organically grew $448 million, or 16 percent annualized, in the current quarter.
Core deposits organically increased $560 million, or 13 percent annualized, during the current quarter.
Received $201 million in PPP loan forgiveness proceeds from the U.S. Small Business Administration (“SBA”) during the current quarter compared to $327 million in the prior quarter.
The Company transferred the listing of its common stock to the New York Stock Exchange (“NYSE”) from the NASDAQ Global Select Market.
Declared and paid a regular quarterly dividend of $0.32 per share. The Company has declared 147 consecutive quarterly dividends and has increased the dividend 48 times.
Declared a special dividend of $0.10 per share. This was the 18th special dividend the Company has declared.

Year 2021 Highlights:
Record net income of $285 million, an increase of $18.4 million, or 7 percent, over the prior year net income of $266 million.
Diluted earnings per share of $2.86, an increase of 2 percent from the prior year diluted earnings per share of $2.81.
Net interest income, on a tax-equivalent basis, excluding the PPP loans, of $636 million, an increase of $57.5 million, or 10 percent, over the prior year net interest income of $578 million.
The loan portfolio, excluding the PPP loans, organically increased $1.160 billion, or 11 percent, in 2021.
Core deposits organically increased $3.278 billion, or 22 percent, during 2021.
The Company funded 8,525 PPP loans in the amount of $555 million during the first half of 2021.
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The Company received $1.305 billion in PPP loan forgiveness proceeds from the U.S. Small Business Administration (“SBA”) during 2021.
Dividends declared of $1.37 per share, an increase of $0.04 per share, or 3 percent, over the prior year dividends of $1.33.
Completed the acquisition of Altabancorp, the parent company of Altabank, with total acquired assets of $4.132 billion. Based in American Fork, Utah, Altabank is the largest community bank in Utah. This was the Company’s 24th acquisition since 2000 and the largest acquisition in its history.
Financial Summary
 At or for the Three Months endedAt or for the Year ended
(Dollars in thousands, except per share and market data)
Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Dec 31,
2021
Dec 31,
2020
Operating results
Net income$50,709 75,619 77,627 80,802 81,860 284,757 266,400 
Basic earnings per share$0.46 0.79 0.81 0.85 0.86 2.87 2.81 
Diluted earnings per share$0.46 0.79 0.81 0.85 0.86 2.86 2.81 
Dividends declared per share1
$0.42 0.32 0.32 0.31 0.45 1.37 1.33 
Market value per share
Closing$56.70 55.35 55.08 57.08 46.01 56.70 46.01 
High$60.54 56.84 63.05 67.35 47.05 67.35 47.05 
Low$52.62 48.62 52.99 44.55 31.29 44.55 26.66 
Selected ratios and other data
Number of common stock shares outstanding
110,687,53395,512,65995,507,23495,501,81995,426,364110,687,53395,426,364
Average outstanding shares - basic110,687,36595,510,77295,505,87795,465,80195,418,95899,313,25594,883,864
Average outstanding shares - diluted110,789,63295,586,20295,580,90495,546,92295,492,25899,398,25094,932,353
Return on average assets (annualized)0.78 %1.43 %1.55 %1.73 %1.78 %1.33 %1.62 %
Return on average equity (annualized)6.28 %12.49 %13.25 %14.12 %14.27 %11.08 %12.15 %
Efficiency ratio57.68 %50.17 %49.92 %46.75 %50.34 %51.35 %49.97 %
Dividend payout ratio2
91.30 %40.51 %39.51 %36.47 %52.33 %47.74 %47.33 %
Loan to deposit ratio63.24 %65.06 %67.64 %70.72 %76.29 %63.24 %76.29 %
Number of full time equivalent employees
3,4362,9782,9872,9942,9703,4362,970
Number of locations224194194193193224193
Number of ATMs273250250250250273250
______________________
1 Includes a special dividend declared of $0.10 and $0.15 per share for the three and twelve months ended December 31, 2021 and December 31, 2020, respectively.
2 Excluding the special dividend, the dividend payout ratio was 69.57 percent and 34.88 percent for the three months ended December 31, 2021 and 2020, respectively and 44.25 percent and 41.99 percent for the twelve months ended December 31, 2021 and 2020, respectively.
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KALISPELL, Mont.
, Jan 27, 2022 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $50.7 million for the current quarter, a decrease of $31.2 million, or 38 percent, from the $81.9 million of net income for the prior year fourth quarter. Diluted earnings per share for the current quarter was $0.46 per share, a decrease of 47 percent from the prior year fourth quarter diluted earnings per share of $0.86. The decrease in fourth quarter earnings over the prior year was driven primarily by the $22.3 million of credit loss expense and $8.2 million of acquisition-related expenses from the acquisition of Altabank. In addition, there was a $14.8 million decrease in gain on sale of loans with the slowing of purchase and refinance activity after the historic levels in the prior year. The credit loss expense due to the acquisition of Altabank reflects the requirement to fully fund an allowance for credit losses on loans and unfunded commitments post-acquisition. “The Glacier team ended 2021 on a high note with very strong net interest income and loan growth,” said Randy Chesler, President and Chief Executive Officer. “All of our Divisions across the West are extremely well positioned to thrive in 2022.”

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

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

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

Altabank
(Dollars in thousands)October 1,
2021
Total assets4,131,662 
Cash and cash equivalents1,622,727 
Debt securities6,658 
Loans receivable1,902,321 
Non-interest bearing deposits1,201,464 
Interest bearing deposits2,072,355 
Borrowings— 

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Asset Summary
$ Change from
(Dollars in thousands)Dec 31,
2021
Sep 30,
2021
Dec 31,
2020
Sep 30,
2021
Dec 31,
2020
Cash and cash equivalents$437,686 348,888 633,142 88,798 (195,456)
Debt securities, available-for-sale9,170,849 7,390,580 5,337,814 1,780,269 3,833,035 
Debt securities, held-to-maturity1,199,164 1,128,299 189,836 70,865 1,009,328 
Total debt securities10,370,013 8,518,879 5,527,650 1,851,134 4,842,363 
Loans receivable
Residential real estate1,051,883 781,538 802,508 270,345 249,375 
Commercial real estate8,630,831 6,912,569 6,315,895 1,718,262 2,314,936 
Other commercial2,664,190 2,598,616 3,054,817 65,574 (390,627)
Home equity736,288 660,920 636,405 75,368 99,883 
Other consumer348,839 340,248 313,071 8,591 35,768 
Loans receivable13,432,031 11,293,891 11,122,696 2,138,140 2,309,335 
Allowance for credit losses
(172,665)(153,609)(158,243)(19,056)(14,422)
Loans receivable, net13,259,366 11,140,282 10,964,453 2,119,084 2,294,913 
Other assets1,873,580 1,305,970 1,378,961 567,610 494,619 
Total assets$25,940,645 21,314,019 18,504,206 4,626,626 7,436,439 

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

The loan portfolio of $13.432 billion at December 31, 2021 increased $2.138 billion, or 19 percent, in the current quarter and increased $2.309 billion, or 21 percent, from the prior year end. Excluding the PPP loans and loans from the Alta acquisition, the loan portfolio increased $448 million, or 16 percent annualized, during the current quarter with the largest increase in commercial real estate which increased $315 million, or 18 percent annualized. Excluding the PPP loans and loans from the Alta acquisition, the loan portfolio increased $1.160 billion, or 11 percent, from the prior year end with the largest increase in commercial real estate loans which increased $912 million, or 14 percent.

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Credit Quality Summary
At or for the Year endedAt or for the Nine Months endedAt or for the Year ended
(Dollars in thousands)Dec 31,
2021
Sep 30,
2021
Dec 31,
2020
Allowance for credit losses
Balance at beginning of period$158,243 158,243 124,490 
Impact of adopting CECL— — 3,720 
Acquisitions371 — 49 
Provision for credit losses16,380 (2,921)37,637 
Charge-offs(11,594)(8,566)(13,808)
Recoveries9,265 6,853 6,155 
Balance at end of period$172,665 153,609 158,243 
Provision for credit losses
Loan portfolio$16,380 (2,921)37,637 
Unfunded loan commitments6,696 (1,959)2,128 
Total provision for credit losses$23,076 (4,880)39,765 
Other real estate owned$— 88 1,182 
Other foreclosed assets18 18 562 
Accruing loans 90 days or more past due17,141 5,172 1,725 
Non-accrual loans50,532 45,901 31,964 
Total non-performing assets$67,691 51,179 35,433 
Non-performing assets as a percentage of subsidiary assets
0.26 %0.24 %0.19 %
Allowance for credit losses as a percentage of non-performing loans
255 %301 %470 %
Allowance for credit losses as a percentage of total loans
1.29 %1.36 %1.42 %
Net charge-offs as a percentage of total loans0.02 %0.02 %0.07 %
Accruing loans 30-89 days past due$50,566 26,002 22,721 
Accruing troubled debt restructurings$34,591 36,666 42,003 
Non-accrual troubled debt restructurings$2,627 2,820 3,507 
U.S. government guarantees included in non-performing assets$4,028 4,116 3,011 

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

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

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

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

Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio
(Dollars in thousands)Provision for Credit Losses 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
Fourth quarter 2021$19,301 $616 1.29 %0.38 %0.26 %
Third quarter 20212,313 152 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 %

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

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


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PPP Loans

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

(Dollars in thousands)Dec 31, 2021Sep 30, 2021Dec 31, 2020
PPP Round 1 loans$32,348 56,048 909,173 
PPP Round 2 loans136,329 312,865 — 
       Total PPP loans168,677 368,913 909,173 
Net remaining fees - Round 1269 485 17,605 
Net remaining fees - Round 24,808 12,501 — 
        Total net remaining fees$5,077 12,986 17,605 

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

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

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

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

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

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Liability Summary
$ Change from
(Dollars in thousands)Dec 31,
2021
Sep 30,
2021
Dec 31,
2020
Sep 30,
2021
Dec 31,
2020
Deposits
Non-interest bearing deposits$7,779,288 6,632,402 5,454,539 1,146,886 2,324,749 
NOW and DDA accounts5,301,832 4,299,244 3,698,559 1,002,588 1,603,273 
Savings accounts3,180,046 2,502,268 2,000,174 677,778 1,179,872 
Money market deposit accounts
4,014,128 3,123,425 2,627,336 890,703 1,386,792 
Certificate accounts1,036,077 919,852 978,779 116,225 57,298 
Core deposits, total21,311,371 17,477,191 14,759,387 3,834,180 6,551,984 
Wholesale deposits25,878 26,123 38,142 (245)(12,264)
Deposits, total21,337,249 17,503,314 14,797,529 3,833,935 6,539,720 
Repurchase agreements1,020,794 1,040,939 1,004,583 (20,145)16,211 
Other borrowed funds44,094 33,671 33,068 10,423 11,026 
Subordinated debentures132,620 132,580 139,959 40 (7,339)
Other liabilities228,266 215,899 222,026 12,367 6,240 
Total liabilities$22,763,023 18,926,403 16,197,165 3,836,620 6,565,858 

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

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

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

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

Cash Dividends
On December 29, 2021, the Company’s Board of Directors declared a special cash dividend of $0.10 per share, the 18th special dividend the Company has declared. The special dividend was payable on January 20, 2022 to shareholders of record on January 11, 2022. On November 17, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.32 per share. The dividend was payable December 16, 2021 to shareholders of record on December 7, 2021. The dividend was the 147th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

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Operating Results for Three Months Ended December 31, 2021 
Compared to September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020
Income Summary
 Three Months ended
(Dollars in thousands)Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Net interest income
Interest income$192,825 166,741 159,956 161,552 171,308 
Interest expense5,203 4,128 4,487 4,740 5,550 
Total net interest income187,622 162,613 155,469 156,812 165,758 
Non-interest income
Service charges and other fees
17,576 15,154 13,795 12,792 13,713 
Miscellaneous loan fees and charges3,745 2,592 2,923 2,778 2,293 
Gain on sale of loans11,431 13,902 16,106 21,624 26,214 
(Loss) gain on sale of investments(693)(168)(61)284 124 
Other income2,303 3,335 2,759 2,643 2,360 
Total non-interest income34,362 34,815 35,522 40,121 44,704 
Total income221,984 197,428 190,991 196,933 210,462 
Net interest margin (tax-equivalent)
3.21 %3.39 %3.44 %3.74 %4.03 %
$ Change from
(Dollars in thousands)Sep 30,
2021
Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Net interest income
Interest income$26,084 32,869 31,273 21,517 
Interest expense1,075 716 463 (347)
Total net interest income25,009 32,153 30,810 21,864 
Non-interest income
Service charges and other fees
2,422 3,781 4,784 3,863 
Miscellaneous loan fees and charges1,153 822 967 1,452 
Gain on sale of loans(2,471)(4,675)(10,193)(14,783)
(Loss) gain on sale of investments(525)(632)(977)(817)
Other income(1,032)(456)(340)(57)
Total non-interest income(453)(1,160)(5,759)(10,342)
Total income$24,556 30,993 25,051 11,522 

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

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

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

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

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



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Non-interest Expense Summary
 Three Months ended
(Dollars in thousands)Dec 31,
2021
Sep 30,
2021
Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Compensation and employee benefits$77,703 66,364 64,109 62,468 70,540 
Occupancy and equipment11,259 9,412 9,208 9,515 9,728 
Advertising and promotions3,436 3,236 2,906 2,371 2,797 
Data processing7,468 5,135 5,661 5,206 5,211 
Other real estate owned and foreclosed
     assets
34 142 48 12 550 
Regulatory assessments and insurance2,657 2,011 1,702 1,879 1,034 
Core deposit intangibles amortization2,807 2,488 2,488 2,488 2,612 
Other expenses28,683 15,320 13,960 12,646 18,715 
Total non-interest expense$134,047 104,108 100,082 96,585 111,187 
$ Change from
(Dollars in thousands)Sep 30,
2021
Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Compensation and employee benefits$11,339 13,594 15,235 7,163 
Occupancy and equipment1,847 2,051 1,744 1,531 
Advertising and promotions200 530 1,065 639 
Data processing2,333 1,807 2,262 2,257 
Other real estate owned(108)(14)22 (516)
Regulatory assessments and insurance646 955 778 1,623 
Core deposit intangibles amortization319 319 319 195 
Other expenses13,363 14,723 16,037 9,968 
Total non-interest expense$29,939 33,965 37,462 22,860 

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

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

12


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

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

Income Summary
Year ended
(Dollars in thousands)Dec 31,
2021
Dec 31,
2020
$ Change% Change
Net interest income
Interest income$681,074 $627,064 $54,010 %
Interest expense18,558 27,315 (8,757)(32)%
Total net interest income662,516 599,749 62,767 10 %
Non-interest income
Service charges and other fees59,317 52,503 6,814 13 %
Miscellaneous loan fees and charges12,038 7,344 4,694 64 %
Gain on sale of loans63,063 99,450 (36,387)(37)%
(Loss) gain on sale of investments(638)1,139 (1,777)(156)%
Other income11,040 12,431 (1,391)(11)%
Total non-interest income144,820 172,867 (28,047)(16)%
Total Income$807,336 $772,616 $34,720 %
Net interest margin (tax-equivalent)3.42 %4.09 %

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

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


13


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

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

Non-interest Expense Summary
Year ended
(Dollars in thousands)Dec 31,
2021
Dec 31,
2020
$ Change% Change
Compensation and employee benefits$270,644 $253,047 $17,597 %
Occupancy and equipment39,394 37,673 1,721 %
Advertising and promotions11,949 10,201 1,748 17 %
Data processing23,470 21,132 2,338 11 %
Other real estate owned and foreclosed assets236 923 (687)(74)%
Regulatory assessments and insurance8,249 4,656 3,593 77 %
Core deposit intangibles amortization10,271 10,370 (99)(1)%
Other expenses70,609 66,809 3,800 %
Total non-interest expense$434,822 $404,811 $30,011 %

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

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

Provision for Credit Losses
The provision for credit loss expense was $23.1 million for 2021 compared to $39.8 million in 2020. Excluding the impact from the Alta and State Bank of Arizona acquisitions, the current year provision for credit loss expense on unfunded loan commitments was $2.5 million compared to a credit loss expense of $2.1 million in the prior year. Excluding the impact from the acquisitions, the current year provision for credit loss benefit on loans was $1.7 million compared to a credit loss expense of $32.8 million in the prior year which was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the current year were $2.3 million compared to $7.7 million during the prior year.
14



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

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

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

the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio;
changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability;
changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties;
legislative or regulatory changes, such as the those signaled by the Biden Administration, as well as increased banking and consumer protection regulation that adversely affect the Company’s business, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
ability to complete pending or prospective future acquisitions;
costs or difficulties related to the completion and integration of acquisitions;
the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
reduced demand for banking products and services;
the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
competition among financial institutions in the Company's markets may increase significantly;
the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
15


dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
natural disasters, including fires, floods, earthquakes, and other unexpected events;
the Company’s success in managing risks involved in the foregoing; and
the effects of any reputational damage to the Company resulting from any of the foregoing.

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

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

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



16


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)Dec 31,
2021
Sep 30,
2021
Dec 31,
2020
Assets
Cash on hand and in banks$198,087 250,579 227,108 
Interest bearing cash deposits239,599 98,309 406,034 
Cash and cash equivalents437,686 348,888 633,142 
Debt securities, available-for-sale9,170,849 7,390,580 5,337,814 
Debt securities, held-to-maturity1,199,164 1,128,299 189,836 
Total debt securities10,370,013 8,518,879 5,527,650 
Loans held for sale, at fair value60,797 94,138 166,572 
Loans receivable13,432,031 11,293,891 11,122,696 
Allowance for credit losses(172,665)(153,609)(158,243)
Loans receivable, net13,259,366 11,140,282 10,964,453 
Premises and equipment, net372,597 316,191 325,335 
Other real estate owned and foreclosed assets18 106 1,744 
Accrued interest receivable76,673 79,699 75,497 
Deferred tax asset27,693 — — 
Core deposit intangible, net52,259 48,045 55,509 
Goodwill985,393 514,013 514,013 
Non-marketable equity securities10,020 10,021 10,023 
Bank-owned life insurance167,671 123,729 123,763 
Other assets120,459 120,028 106,505 
Total assets$25,940,645 21,314,019 18,504,206 
Liabilities
Non-interest bearing deposits$7,779,288 6,632,402 5,454,539 
Interest bearing deposits13,557,961 10,870,912 9,342,990 
Securities sold under agreements to repurchase1,020,794 1,040,939 1,004,583 
Other borrowed funds44,094 33,671 33,068 
Subordinated debentures132,620 132,580 139,959 
Accrued interest payable2,409 2,437 3,305 
Deferred tax liability— 1,815 23,860 
Other liabilities225,857 211,647 194,861 
Total liabilities22,763,023 18,926,403 16,197,165 
Commitments and Contingent Liabilities
Stockholders’ Equity
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding
— — — 
Common stock, $0.01 par value per share, 117,187,500 shares authorized
1,107 955 954 
Paid-in capital2,338,814 1,497,939 1,495,053 
Retained earnings - substantially restricted810,342 811,063 667,944 
Accumulated other comprehensive income27,359 77,659 143,090 
Total stockholders’ equity3,177,622 2,387,616 2,307,041 
Total liabilities and stockholders’ equity$25,940,645 21,314,019 18,504,206 

17


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 Three Months endedYear ended
(Dollars in thousands, except per share data)Dec 31,
2021
Sep 30,
2021
Dec 31,
2020
Dec 31,
2021
Dec 31,
2020
Interest Income
Debt securities$35,711 30,352 27,388 122,099 99,616 
Residential real estate loans13,728 9,885 11,176 43,300 46,392 
Commercial loans131,158 115,533 121,956 471,061 436,497 
Consumer and other loans12,228 10,971 10,788 44,614 44,559 
Total interest income192,825 166,741 171,308 681,074 627,064 
Interest Expense
Deposits3,708 2,609 3,500 12,135 17,620 
Securities sold under agreements to
  repurchase
467 496 818 2,303 3,601 
Federal Home Loan Bank advances— — 49 — 733 
Other borrowed funds
184 178 173 713 646 
Subordinated debentures844 845 1,010 3,407 4,715 
Total interest expense5,203 4,128 5,550 18,558 27,315 
Net Interest Income187,622 162,613 165,758 662,516 599,749 
Provision for credit losses27,956 725 (1,535)23,076 39,765 
Net interest income after provision for credit losses
159,666 161,888 167,293 639,440 559,984 
Non-Interest Income
Service charges and other fees17,576 15,154 13,713 59,317 52,503 
Miscellaneous loan fees and charges3,745 2,592 2,293 12,038 7,344 
Gain on sale of loans11,431 13,902 26,214 63,063 99,450 
(Loss) gain on sale of debt securities(693)(168)124 (638)1,139 
Other income2,303 3,335 2,360 11,040 12,431 
Total non-interest income34,362 34,815 44,704 144,820 172,867 
Non-Interest Expense
Compensation and employee benefits77,703 66,364 70,540 270,644 253,047 
Occupancy and equipment11,259 9,412 9,728 39,394 37,673 
Advertising and promotions3,436 3,236 2,797 11,949 10,201 
Data processing7,468 5,135 5,211 23,470 21,132 
Other real estate owned and foreclosed
  assets
34 142 550 236 923 
Regulatory assessments and insurance
2,657 2,011 1,034 8,249 4,656 
Core deposit intangibles amortization2,807 2,488 2,612 10,271 10,370 
Other expenses28,683 15,320 18,715 70,609 66,809 
Total non-interest expense134,047 104,108 111,187 434,822 404,811 
Income Before Income Taxes59,981 92,595 100,810 349,438 328,040 
Federal and state income tax expense9,272 16,976 18,950 64,681 61,640 
Net Income$50,709 75,619 81,860 284,757 266,400 

18


Glacier Bancorp, Inc.
Average Balance Sheets
Three Months ended
December 31, 2021September 30, 2021
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$1,104,232 $13,728 4.97 %$817,150 $9,885 4.84 %
Commercial loans 1
11,184,129 132,561 4.70 %9,468,440 116,963 4.90 %
Consumer and other loans1,082,341 12,228 4.48 %974,582 10,971 4.47 %
Total loans 2
13,370,702 158,517 4.70 %11,260,172 137,819 4.86 %
Tax-exempt debt securities 2
1,693,761 15,552 3.67 %1,548,447 14,711 3.80 %
Taxable debt securities 4
8,709,938 23,555 1.08 %6,767,418 18,896 1.12 %
Total earning assets23,774,401 197,624 3.30 %19,576,037 171,426 3.47 %
Goodwill and intangibles1,031,002 563,257 
Non-earning assets950,923 803,226 
Total assets$25,756,326 $20,942,520 
Liabilities
Non-interest bearing deposits$7,955,888 $— — %$6,505,530 $— — %
NOW and DDA accounts5,120,484 970 0.08 %4,261,648 597 0.06 %
Savings accounts3,133,654 346 0.04 %2,440,332 146 0.02 %
Money market deposit accounts3,883,818 1,374 0.14 %3,041,634 814 0.11 %
Certificate accounts1,051,787 1,004 0.38 %928,165 1,036 0.44 %
Total core deposits21,145,631 3,694 0.07 %17,177,309 2,593 0.06 %
Wholesale deposits 5
26,104 14 0.21 %26,117 16 0.24 %
Repurchase agreements1,015,369 467 0.18 %988,283 495 0.20 %
Subordinated debentures and other borrowed funds167,545 1,028 2.43 %166,151 1,024 2.44 %
Total funding liabilities22,354,649 5,203 0.09 %18,357,860 4,128 0.09 %
Other liabilities199,207 182,573 
Total liabilities22,553,856 18,540,433 
Stockholders’ Equity
Common stock1,107 955 
Paid-in capital2,338,013 1,497,107 
Retained earnings815,726 805,253 
Accumulated other comprehensive income47,624 98,772 
Total stockholders’ equity3,202,470 2,402,087 
Total liabilities and stockholders’ equity$25,756,326 $20,942,520 
Net interest income (tax-equivalent)$192,421 $167,298 
Net interest spread (tax-equivalent)3.21 %3.38 %
Net interest margin (tax-equivalent)3.21 %3.39 %
______________________________
1 Includes tax effect of $1.4 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2021 and September 30, 2021, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.2 million and $3.0 million on tax-exempt debt securities income for the three months ended December 31, 2021 and September 30, 2021, respectively.
4 Includes tax effect of $225 thousand and $255 thousand on federal income tax credits for the three months ended December 31, 2021 and September 30, 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

19


Glacier Bancorp, Inc.
Average Balance Sheets (continued)
Three Months ended
 December 31, 2021December 31, 2020
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$1,104,232 $13,728 4.97 %$984,942 $11,176 4.54 %
Commercial loans 1
11,184,129 132,561 4.70 %9,535,228 123,327 5.15 %
Consumer and other loans1,082,341 12,228 4.48 %951,379 10,788 4.51 %
Total loans 2
13,370,702 158,517 4.70 %11,471,549 145,291 5.04 %
Tax-exempt debt securities 3
1,693,761 15,552 3.67 %1,511,725 14,659 3.88 %
Taxable debt securities 4
8,709,938 23,555 1.08 %3,838,896 15,957 1.66 %
Total earning assets23,774,401 197,624 3.30 %16,822,170 175,907 4.16 %
Goodwill and intangibles1,031,002 570,771 
Non-earning assets950,923 853,518 
Total assets$25,756,326 $18,246,459 
Liabilities
Non-interest bearing deposits$7,955,888 $— — %$5,498,744 $— — %
NOW and DDA accounts5,120,484 970 0.08 %3,460,923 607 0.07 %
Savings accounts3,133,654 346 0.04 %1,935,476 162 0.03 %
Money market deposit accounts3,883,818 1,374 0.14 %2,635,653 1,052 0.16 %
Certificate accounts1,051,787 1,004 0.38 %984,100 1,629 0.66 %
Total core deposits21,145,631 3,694 0.07 %14,514,896 3,450 0.09 %
Wholesale deposits 5
26,104 14 0.21 %100,329 50 0.20 %
Repurchase agreements1,015,369 467 0.18 %969,263 818 0.34 %
FHLB advances— — — %6,540 49 2.93 %
Subordinated debentures and other borrowed funds167,545 1,028 2.43 %172,936 1,183 2.72 %
Total funding liabilities22,354,649 5,203 0.09 %15,763,964 5,550 0.14 %
Other liabilities199,207 199,771 
Total liabilities22,553,856 15,963,735 
Stockholders’ Equity
Common stock1,107 954 
Paid-in capital2,338,013 1,494,422 
Retained earnings815,726 657,906 
Accumulated other comprehensive income
47,624 129,442 
Total stockholders’ equity3,202,470 2,282,724 
Total liabilities and stockholders’ equity
$25,756,326 $18,246,459 
Net interest income (tax-equivalent)$192,421 $170,357 
Net interest spread (tax-equivalent)3.21 %4.02 %
Net interest margin (tax-equivalent)3.21 %4.03 %
______________________________
1 Includes tax effect of $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2021 and 2020, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.2 million and $1.8 million on tax-exempt debt securities income for the three months ended December 31, 2021 and 2020, respectively.
4 Includes tax effect of $225 thousand and $276 thousand on federal income tax credits for the three months ended December 31, 2021 and 2020, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


20


Glacier Bancorp, Inc.
Average Balance Sheets (continued)
Year ended
 December 31, 2021December 31, 2020
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$910,300 $43,300 4.76 %$1,006,001 $46,392 4.61 %
Commercial loans 1
9,900,056 476,678 4.81 %9,057,210 441,762 4.88 %
Consumer and other loans993,082 44,614 4.49 %948,379 44,559 4.70 %
Total loans 2
11,803,438 564,592 4.78 %11,011,590 532,713 4.84 %
Tax-exempt debt securities 3
1,584,313 59,713 3.77 %1,306,640 52,201 4.00 %
Taxable debt securities 4
6,512,202 75,553 1.16 %2,746,855 59,027 2.15 %
Total earning assets19,899,953 699,858 3.52 %15,065,085 643,941 4.27 %
Goodwill and intangibles683,000 564,603 
Non-earning assets850,742 784,075 
Total assets$21,433,695 $16,413,763 
Liabilities
Non-interest bearing deposits$6,544,843 $— — %$4,772,386 $— — %
NOW and DDA accounts4,325,071 2,737 0.06 %3,094,675 2,849 0.09 %
Savings accounts2,493,174 771 0.03 %1,737,272 742 0.04 %
Money market deposit accounts3,144,507 3,914 0.12 %2,356,508 5,077 0.22 %
Certificate accounts976,894 4,643 0.48 %986,126 8,568 0.87 %
Total core deposits17,484,489 12,065 0.07 %12,946,967 17,236 0.13 %
Wholesale deposits 5
31,103 70 0.22 %78,283 384 0.49 %
Repurchase agreements994,968 2,302 0.23 %783,100 3,601 0.94 %
FHLB advances— — — %79,278 733 0.91 %
Subordinated debentures and other borrowed funds166,386 4,121 2.48 %172,104 5,361 3.11 %
Total funding liabilities18,676,946 18,558 0.10 %14,059,732 27,315 0.19 %
Other liabilities186,068 162,079 
Total liabilities18,863,014 14,221,811 
Stockholders’ Equity
Common stock993 949 
Paid-in capital1,708,271 1,474,359 
Retained earnings772,300 604,796 
Accumulated other comprehensive income
89,117 111,848 
Total stockholders’ equity2,570,681 2,191,952 
Total liabilities and stockholders’ equity
$21,433,695 $16,413,763 
Net interest income (tax-equivalent)$681,300 $616,626 
Net interest spread (tax-equivalent)3.42 %4.08 %
Net interest margin (tax-equivalent)3.42 %4.09 %
______________________________
1 Includes tax effect of $5.6 million and $5.3 million on tax-exempt municipal loan and lease income for the year months ended December 31, 2021 and 2020, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $12.2 million and $10.5 million on tax-exempt debt securities income for the year months ended December 31, 2021 and 2020, respectively.
4 Includes tax effect of $990 thousand and $1,064 thousand on federal income tax credits for the year months ended December 31, 2021 and 2020, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
21


Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
 Loans Receivable, by Loan Type% Change from
(Dollars in thousands)Dec 31,
2021
Sep 30,
2021
Dec 31,
2020
Sep 30,
2021
Dec 31,
2020
Custom and owner occupied construction
$263,758 $170,489 $157,529 55 %67 %
Pre-sold and spec construction257,568 188,668 148,845 37 %73 %
Total residential construction
521,326 359,157 306,374 45 %70 %
Land development185,200 151,640 102,930 22 %80 %
Consumer land or lots173,305 143,977 123,747 20 %40 %
Unimproved land81,064 68,805 59,500 18 %36 %
Developed lots for operative builders
41,840 33,487 30,449