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Glacier Bancorp, Inc. (GBCI) SEC Filing 8-K Material Event for the period ending Thursday, October 20, 2022

Glacier Bancorp Inc

CIK: 868671 Ticker: GBCI

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NEWS RELEASE
October 20, 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 PERIOD ENDED SEPTEMBER 30, 2022

3rd Quarter 2022 Highlights:
Net income was $79.3 million for the current quarter, an increase of $2.9 million, or 5 percent, from the prior quarter net income of $76.4 million. Net income for the current quarter increased $3.7 million, or 5 percent, over the prior year third quarter net income of $75.6 million as a result of organic and acquisition growth.
The loan portfolio, excluding the Paycheck Protection Program (“PPP”) loans, grew $457 million, or 13 percent annualized, in the current quarter.
Core deposits increased $96.0 million, or 2 percent annualized, during the current quarter.
Non-interest bearing deposits increased $233 million, or 12 percent annualized, during the current quarter.
Net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.34 percent compared to 3.23 percent in the prior quarter. The core net interest margin for the current quarter was 3.29 percent, an increase of 13 basis points from 3.16 percent in the prior quarter.
The loan yield for the current quarter of 4.67 percent, increased 15 basis points, compared to 4.52 percent in the prior quarter.
Net interest income, on a tax-equivalent basis, was $211 million in the current quarter which increased $12.0 million, or 6 percent, over the prior quarter net interest income of $199 million.
Non-performing assets as a percentage of subsidiary assets was 0.13 percent in the current quarter compared to 0.16 percent in the prior quarter.
The Company declared a quarterly dividend of $0.33 per share. The Company has declared 150 consecutive quarterly dividends and has increased the dividend 49 times.

Year-to-date 2022 Highlights:
Net income of $224 million for the first nine months of 2022 decreased $10.5 million, or 5 percent, compared to the prior year first nine months net income. The current year included a decrease of $38.3 million in PPP related income, a $33.8 million decrease in gain on the sale of residential loans, and an increase of $18.7 million in provision for credit loss expense.
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The loan portfolio, excluding the PPP loans, organically grew $1.578 billion, or 16 percent annualized, in the first nine months of 2022.
Core deposits increased $564 million, or 4 percent annualized, during the first nine months of 2022.
Non-interest bearing deposits increased $515 million, or 9 percent annualized, during the first nine months of 2022.
Net interest income, on a tax-equivalent basis, was $600 million in the first nine months of 2022 which increased $111 million, or 23 percent, over the first nine months of 2021 net interest income of $489 million.
Dividends declared in the first nine months of 2022 were $0.99 per share, an increase of $0.04 per share, or 4 percent, over the prior year first nine months dividends of $0.95.

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,
2022
Jun 30,
2022
Mar 31,
2022
Sep 30,
2021
Sep 30,
2022
Sep 30,
2021
Operating results
Net income$79,338 76,392 67,795 75,619 223,525 234,048 
Basic earnings per share$0.72 0.69 0.61 0.79 2.02 2.45 
Diluted earnings per share$0.72 0.69 0.61 0.79 2.02 2.45 
Dividends declared per share$0.33 0.33 0.33 0.32 0.99 0.95 
Market value per share
Closing$49.13 47.42 50.28 55.35 49.13 55.35 
High$56.10 51.40 60.69 56.84 60.69 67.35 
Low$46.08 44.43 49.61 48.62 44.43 44.55 
Selected ratios and other data
Number of common stock shares outstanding
110,766,954110,766,287110,763,31695,512,659110,766,95495,512,659
Average outstanding shares - basic110,766,502110,765,379110,724,65595,510,772110,752,23195,494,211
Average outstanding shares - diluted110,833,594110,794,982110,800,00195,586,202110,811,26795,573,519
Return on average assets (annualized)1.18 %1.16 %1.06 %1.43 %1.13 %1.57 %
Return on average equity (annualized)10.94 %10.55 %8.97 %12.49 %10.14 %13.27 %
Efficiency ratio52.76 %55.74 %57.11 %50.17 %55.14 %48.94 %
Dividend payout 45.83 %47.83 %54.10 %40.51 %49.01 %38.78 %
Loan to deposit ratio67.98 %66.26 %63.52 %65.06 %67.98 %65.06 %
Number of full time equivalent employees
3,3963,4393,4392,9783,3962,978
Number of locations222224223194222194
Number of ATMs272274273250272250

KALISPELL, Mont., Oct 20, 2022 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $79.3 million for the current quarter, an increase of $3.7 million, or 5 percent, from the $75.6 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.72 per share, a decrease of 9 percent from the prior year third quarter diluted earnings per share of $0.79. The $3.7 million increase in third quarter earnings over the prior year third quarter was driven primarily by the acquisition of Altabancorp and its Altabank subsidiary (“Alta”) and organic loan growth which more than offset the $10.1 million decrease in gain on the sale of residential loans, a $12.7 million decrease in the PPP related income and an increase of $7.6 million of provision for credit loss. “We are very pleased to see another quarter of high quality growth in deposits and loans. Our margin continues to increase, reflecting higher interest rates, and credit quality remains pristine,” said Randy Chesler, President and Chief Executive Officer. “We are well
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prepared for an economic downturn and remain very confident in the resiliency of the markets we serve and the quality of our loan portfolio.”

Net income for the nine months ended September 30, 2022 was $224 million, a decrease of $10.5 million, or 5 percent, from the $234 million net income for the first nine months of the prior year. Diluted earnings per share for the first nine months of 2022 was $2.02 per share, a decrease of 18 percent from the prior year first nine months earnings per share of $2.45. The $10.5 million decrease in net income over the prior year first nine months was driven primarily by a $38.3 million decrease in the PPP related income, a $33.8 million decrease in gain on the sale of residential loans, an increase of $18.7 million of provision for credit loss, and a $7.5 million increase in acquisition-related expenses which more than offset the net income increases from organic growth and the acquisition of Alta on October 1, 2021.

Asset Summary
$ Change from
(Dollars in thousands)Sep 30,
2022
Jun 30,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2022
Dec 31,
2021
Sep 30,
2021
Cash and cash equivalents$425,212 415,406 437,686 348,888 9,806 (12,474)76,324 
Debt securities, available-for-sale5,755,076 6,209,199 9,170,849 7,390,580 (454,123)(3,415,773)(1,635,504)
Debt securities, held-to-maturity3,756,634 3,788,486 1,199,164 1,128,299 (31,852)2,557,470 2,628,335 
Total debt securities9,511,710 9,997,685 10,370,013 8,518,879 (485,975)(858,303)992,831 
Loans receivable
Residential real estate1,368,368 1,261,119 1,051,883 781,538 107,249 316,485 586,830 
Commercial real estate9,582,989 9,310,070 8,630,831 6,912,569 272,919 952,158 2,670,420 
Other commercial2,729,717 2,685,392 2,664,190 2,598,616 44,325 65,527 131,101 
Home equity793,556 773,582 736,288 660,920 19,974 57,268 132,636 
Other consumer376,603 369,592 348,839 340,248 7,011 27,764 36,355 
Loans receivable14,851,233 14,399,755 13,432,031 11,293,891 451,478 1,419,202 3,557,342 
Allowance for credit losses
(178,191)(172,963)(172,665)(153,609)(5,228)(5,526)(24,582)
Loans receivable, net14,673,042 14,226,792 13,259,366 11,140,282 446,250 1,413,676 3,532,760 
Other assets2,122,990 2,050,122 1,873,580 1,305,970 72,868 249,410 817,020 
Total assets$26,732,954 26,690,005 25,940,645 21,314,019 42,949 792,309 5,418,935 

Total debt securities of $9.512 billion at September 30, 2022 decreased $486 million, or 5 percent, during the current quarter and increased $993 million, or 12 percent, from the prior year third quarter. Debt securities represented 36 percent of total assets at September 30, 2022 compared to 40 percent at December 31, 2021 and 40 percent of total assets at September 30, 2021.

Excluding the PPP loans, during the current quarter the loan portfolio increased $457 million, or 13 percent annualized, with the largest dollar increase in commercial real estate which increased $273 million, or 12 percent annualized. Excluding the PPP loans and loans from the acquisition of Alta, the loan portfolio increased $2.026 billion, or 19 percent, from the prior year third quarter with the largest dollar increase in commercial real estate loans which increased $1.267 billion, or 18 percent.

As of September 30, 2022, the Company had $10.1 million of PPP loans remaining. In the current quarter, the Company recognized $222 thousand of interest income (including deferred fees and costs) from the PPP loans. Net deferred fees remaining on the balance of the PPP loans at September 30, 2022 was $181 thousand.
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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,
2022
Jun 30,
2022
Dec 31,
2021
Sep 30,
2021
Allowance for credit losses
Balance at beginning of period$172,665 172,665 158,243 158,243 
Acquisitions— — 371 — 
Provision for credit losses11,373 2,991 16,380 (2,921)
Charge-offs(10,905)(7,040)(11,594)(8,566)
Recoveries5,058 4,347 9,265 6,853 
Balance at end of period$178,191 172,963 172,665 153,609 
Provision for credit losses
Loan portfolio$11,373 2,991 16,380 (2,921)
Unfunded loan commitments2,466 2,507 6,696 (1,959)
Total provision for credit losses$13,839 5,498 23,076 (4,880)
Other real estate owned$— — — 88 
Other foreclosed assets42 379 18 18 
Accruing loans 90 days or more past due2,524 5,064 17,141 5,172 
Non-accrual loans32,493 38,523 50,532 45,901 
Total non-performing assets$35,059 43,966 67,691 51,179 
Non-performing assets as a percentage of subsidiary assets
0.13 %0.16 %0.26 %0.24 %
Allowance for credit losses as a percentage of non-performing loans
508 %393 %255 %301 %
Allowance for credit losses as a percentage of total loans
1.20 %1.20 %1.29 %1.36 %
Net charge-offs as a percentage of total loans0.04 %0.02 %0.02 %0.02 %
Accruing loans 30-89 days past due$10,922 16,588 50,566 26,002 
Accruing troubled debt restructurings$37,608 33,859 34,591 36,666 
Non-accrual troubled debt restructurings$2,355 2,427 2,627 2,820 
U.S. government guarantees included in non-performing assets$4,930 5,888 4,028 4,116 

Non-performing assets of $35.1 million at September 30, 2022 decreased $8.9 million, or 20 percent, over the prior quarter and decreased $16.1 million, or 31 percent, over prior year third quarter. Non-performing assets as a percentage of subsidiary assets at September 30, 2022 was 0.13 percent compared to 0.16 percent in the prior quarter and 0.24 percent in the prior year third quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $10.9 million at September 30, 2022 decreased $5.7 million from the prior quarter and decreased $15.1 million from the prior year third quarter. Early stage delinquencies as a percentage of loans at September 30, 2022 was 7 basis points, which compared to 12 basis points in the prior quarter and 23 basis points from prior year third quarter.

The current quarter credit loss expense of $8.3 million included $8.4 million of credit loss expense from loans and $41 thousand of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at September 30, 2022 was 1.20 percent which was the same compared to the prior quarter and a 16 basis points decrease from the prior year third quarter.

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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 2022$8,382 $3,154 1.20 %0.07 %0.13 %
Second quarter 2022(1,353)1,843 1.20 %0.12 %0.16 %
First quarter 20224,344 850 1.28 %0.12 %0.24 %
Fourth quarter 202119,301 616 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 %

Net charge-offs for the current quarter of $3.2 million compared to $1.8 million for the prior quarter and $152 thousand from the same quarter last year. Net charge-offs of $3.2 million included $2.2 million in deposit overdraft net charge-offs and $962 thousand of loan net charge-offs. The current quarter provision for credit loss expense for loans was $8.4 million which was an increase of $9.7 million from the prior quarter which was driven by the organic loan growth and current quarter charged-off loans. Current quarter provision for credit loss expense for loans increased $6.1 million from the prior year third quarter provision for credit loss expense of $2.3 million. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

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

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Liability Summary
$ Change from
(Dollars in thousands)Sep 30,
2022
Jun 30,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2022
Dec 31,
2021
Sep 30,
2021
Deposits
Non-interest bearing deposits$8,294,363 8,061,304 7,779,288 6,632,402 233,059 515,075 1,661,961 
NOW and DDA accounts5,462,707 5,432,333 5,301,832 4,299,244 30,374 160,875 1,163,463 
Savings accounts3,305,333 3,296,561 3,180,046 2,502,268 8,772 125,287 803,065 
Money market deposit accounts
3,905,676 4,021,102 4,014,128 3,123,425 (115,426)(108,452)782,251 
Certificate accounts907,560 968,382 1,036,077 919,852 (60,822)(128,517)(12,292)
Core deposits, total21,875,639 21,779,682 21,311,371 17,477,191 95,957 564,268 4,398,448 
Wholesale deposits4,003 4,001 25,878 26,123 (21,875)(22,120)
Deposits, total21,879,642 21,783,683 21,337,249 17,503,314 95,959 542,393 4,376,328 
Repurchase agreements887,483 968,197 1,020,794 1,040,939 (80,714)(133,311)(153,456)
Federal Home Loan Bank advances
705,000 580,000 — — 125,000 705,000 705,000 
Other borrowed funds77,671 66,200 44,094 33,671 11,471 33,577 44,000 
Subordinated debentures132,742 132,701 132,620 132,580 41 122 162 
Other liabilities278,059 262,985 228,266 215,899 15,074 49,793 62,160 
Total liabilities$23,960,597 23,793,766 22,763,023 18,926,403 166,831 1,197,574 5,034,194 

Core deposits of $21.876 billion increased $96.0 million, or 2 percent annualized, during the current quarter and non-interest bearing deposits increased $233 million, or 12 percent annualized, during the current quarter. Excluding the Alta acquisition, core deposits increased $1.125 billion, or 6 percent, from the prior year third quarter. Non-interest bearing deposits were 38 percent of total core deposits at September 30, 2022 compared to 37 percent at December 31, 2021 and 38 percent at September 30, 2021.

Federal Home Loan Bank (“FHLB”) advances increased $125 million during the current quarter and $705 million during the first nine months of 2022 to support liquidity needs driven by the increase in the loan portfolio.

Stockholders’ Equity Summary
$ Change from
(Dollars in thousands, except per share data)
Sep 30,
2022
Jun 30,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2022
Dec 31,
2021
Sep 30,
2021
Common equity$3,267,505 3,223,451 3,150,263 2,309,957 44,054 117,242 957,548 
Accumulated other comprehensive (loss) income
(495,148)(327,212)27,359 77,659 (167,936)(522,507)(572,807)
Total stockholders’ equity
2,772,357 2,896,239 3,177,622 2,387,616 (123,882)(405,265)384,741 
Goodwill and core deposit intangible, net
(1,029,658)(1,032,323)(1,037,652)(562,058)2,665 7,994 (467,600)
Tangible stockholders’ equity
$1,742,699 1,863,916 2,139,970 1,825,558 (121,217)(397,271)(82,859)
Stockholders’ equity to total assets
10.37 %10.85 %12.25 %11.20 %
Tangible stockholders’ equity to total tangible assets
6.78 %7.26 %8.59 %8.80 %
Book value per common share
$25.03 26.15 28.71 25.00 (1.12)(3.68)0.03 
Tangible book value per common share
$15.73 16.83 19.33 19.11 (1.10)(3.60)(3.38)

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Tangible stockholders’ equity of $1.743 billion at September 30, 2022 decreased $121.2 million, or 7 percent, from the prior quarter which was primarily driven by the increase in the unrealized loss on the available-for-sale (“AFS”) debt securities during the current quarter which was due to a continued increase in interest rates. Tangible stockholders’ equity at September 30, 2022 decreased $82.9 million, or 5 percent, from the prior year third quarter which was due to a significant increase in the unrealized loss on the AFS debt securities and increases in goodwill and core deposit intangibles from the Alta acquisition which was partially offset by the $840 million of Company common stock issued for the acquisition of Alta. Tangible book value per common share of $15.73 at the current quarter end decreased $1.10 per share, or 7 percent, from the prior quarter and decreased $3.38 per share, or 18 percent, from the prior year third quarter primarily as a result of the increase in the unrealized loss on AFS debt securities.

Cash Dividends
On September 28, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable October 20, 2022 to shareholders of record on October 11, 2022. The dividend was the Company’s 150th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended September 30, 2022 
Compared to June 30, 2022, March 31, 2022 and September 30, 2021
Income Summary
 Three Months ended $ Change from
(Dollars in thousands)Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Sep 30,
2021
Jun 30,
2022
Mar 31,
2022
Sep 30,
2021
Net interest income
Interest income$214,402 199,637 190,516 166,741 14,765 23,886 47,661 
Interest expense9,075 6,199 4,961 4,128 2,876 4,114 4,947 
Total net interest income205,327 193,438 185,555 162,613 11,889 19,772 42,714 
Non-interest income
Service charges and other fees
18,970 17,309 17,111 15,154 1,661 1,859 3,816 
Miscellaneous loan fees and charges4,040 3,850 3,555 2,592 190 485 1,448 
Gain on sale of loans3,846 4,996 9,015 13,902 (1,150)(5,169)(10,056)
(Loss) Gain on sale of investments(85)(260)446 (168)175 (531)83 
Other income3,635 2,385 3,436 3,335 1,250 199 300 
Total non-interest income30,406 28,280 33,563 34,815 2,126 (3,157)(4,409)
Total income235,733 221,718 219,118 197,428 14,015 16,615 38,305 
Net interest margin (tax-equivalent)
3.34 %3.23 %3.20 %3.39 %

Net Interest Income
The current quarter net interest income of $205 million increased $11.9 million, or 6 percent, compared to the prior quarter and increased $42.7 million, or 26 percent, from the prior year third quarter. The current quarter interest income of $214 million increased $14.8 million, or 7 percent, over the prior quarter and was driven primarily by the increase in the loan portfolio and an increase in loan portfolio yields. The current quarter interest income increased $47.7 million over the prior year third quarter primarily due to $30.9 million of interest income from Altabank division and organic loan growth, which more than offset the $12.7 million decrease in interest income from the PPP loans. The current quarter net interest income, on a tax equivalent basis, was $211 million.

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The current quarter interest expense of $9.1 million increased $2.9 million, or 46 percent, over the prior quarter and increased $4.9 million, or 120 percent, over the prior year third quarter primarily the result of an increase in borrowings to support the Company’s liquidity needs. Core deposit cost was 6 basis points in each of the current quarter, prior quarter and the prior year third quarter. The total cost of funding (including non-interest bearing deposits) was 15 basis points in the current quarter compared to 11 basis points in the prior quarter and 9 basis points in the prior year third quarter which was driven by the increased borrowings and borrowing rates.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.34 percent compared to 3.23 percent in the prior quarter and 3.39 percent in the prior year third quarter. The core net interest margin, excluding 4 basis points of discount accretion, 1 basis point from non-accrual interest and no impact from the PPP loans, was 3.29 percent compared to 3.16 in the prior quarter and 3.17 percent in the prior year third quarter. The core net interest margin increased 13 basis points in the current quarter as a result of increased core loan yields which more than offset the increase in borrowing yields. The core loan yield of 4.60 percent in the current quarter increased 19 basis points from the prior quarter core loan yield of 4.41 percent. “The increase in net interest margin – reported and core – reflects the success our Bank divisions have had in pricing loans as interest rates have increased,” said Ron Copher, Chief Financial Officer. “In addition, the Bank divisions have done well in growing low-cost core deposits, especially non-interest bearing deposits.”

Non-interest Income
Non-interest income for the current quarter totaled $30.4 million which was an increase of $2.1 million, or 8 percent, over the prior quarter. Non-interest income for the current quarter decreased $4.4 million, or 13 percent, over the same quarter last year with the decrease primarily driven by the decrease in gain on sale of residential loans. Gain on the sale of residential loans of $3.8 million for the current quarter decreased $1.2 million, or 23 percent, compared to the prior quarter and decreased $10.1 million, or 72 percent, from the prior year third quarter. The current quarter mortgage activity was lower than prior periods as a result of the continued reduction in residential purchase and refinance activity as mortgage rates continued to rise.


Non-interest Expense Summary
 Three Months ended $ Change from
(Dollars in thousands)Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Sep 30,
2021
Jun 30,
2022
Mar 31,
2022
Sep 30,
2021
Compensation and employee benefits$80,612 79,803 79,074 66,364 809 1,538 14,248 
Occupancy and equipment10,797 10,766 10,964 9,412 31 (167)1,385 
Advertising and promotions3,768 3,766 3,232 3,236 536 532 
Data processing7,716 7,553 7,475 5,135 163 241 2,581 
Other real estate owned and foreclosed
     assets
66 — 142 60 66 (76)
Regulatory assessments and insurance3,339 3,085 3,055 2,011 254 284 1,328 
Core deposit intangibles amortization2,665 2,665 2,664 2,488 — 177 
Other expenses21,097 21,877 23,844 15,320 (780)(2,747)5,777 
Total non-interest expense$130,060 129,521 130,308 104,108 539 (248)25,952 

Total non-interest expense of $130 million for the current quarter increased $539 thousand, or 42 basis points, over the prior quarter. Acquisition-related expenses was $892 thousand in the current quarter compared to $2.1 million in the prior quarter and $472 thousand in the prior year third quarter.

Total non-interest expense increased $26.0 million, or 25 percent, over the prior year third quarter which was primarily driven by the acquisition of Alta. Excluding $17.5 million of non-interest expense from the Altabank
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division and acquisition-related expenses, non-interest expense increased $8.1 million, or 8 percent, from the prior year third quarter. The increase includes $5.8 million from compensation and employee benefits driven by the increased number of employees and annual salary increases, and a $1.7 million increase in data processing expenses.

Federal and State Income Tax Expense
Tax expense during the third quarter of 2022 was $18.0 million, an increase of $656 thousand, or 4 percent, compared to the prior quarter and an increase of $1.0 million, or 6 percent, from the prior year third quarter. The effective tax rate in the current and prior quarter was 18.5 percent compared to 18.3 in the prior year third quarter.

Efficiency Ratio
The efficiency ratio was 52.76 percent in the current quarter compared to 55.74 percent in the prior quarter and 50.17 in the prior year third quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 52.39 percent in the current quarter compared to 54.84 percent in the prior quarter and 49.94 percent in the prior year third quarter. The increase in the efficiency ratio from the prior year third quarter was driven by the decrease in gain on the sale of residential loans.


Operating Results for Nine Months Ended September 30, 2022
Compared to September 30, 2021

Income Summary
Nine Months ended
(Dollars in thousands)Sep 30,
2022
Sep 30,
2021
$ Change% Change
Net interest income
Interest income$604,555 $488,249 $116,306 24 %
Interest expense20,235 13,355 6,880 52 %
Total net interest income584,320 474,894 109,426 23 %
Non-interest income
Service charges and other fees53,390 41,741 11,649 28 %
Miscellaneous loan fees and charges11,445 8,293 3,152 38 %
Gain on sale of loans17,857 51,632 (33,775)(65)%
Gain on sale of investments101 55 46 84 %
Other income9,456 8,737 719 %
Total non-interest income92,249 110,458 (18,209)(16)%
Total Income$676,569 $585,352 $91,217 16 %
Net interest margin (tax-equivalent)3.26 %3.52 %

Net Interest Income
Net-interest income of $584 million for the first nine months of 2022 increased $109 million, or 23 percent, over the same period in 2021. Interest income of $605 million for the first nine months of the current year increased $116 million, or 24 percent, from the prior year and was primarily attributable to $89.9 million of interest income from Alta division and organic growth. Interest expense of $20.2 million for the first nine months of 2022 increased $6.9 million, or 52 percent over the prior year. The total funding cost (including non-interest bearing deposits) for the first nine months of 2022 was 12 basis points, which increased 2 basis points compared to 10 basis points in first nine months of 2021 driven by the increased borrowing rates.
9


The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first nine months of 2022 was 3.26 percent, a 26 basis points decrease from the net interest margin of 3.52 percent for the same period in the prior year. The core net interest margin, excluding 5 basis points of discount accretion, 1 basis point of non-accrual interest and 2 basis points increase from the PPP loans, was 3.18 which was a 17 basis point decrease from the core margin of 3.35 percent in the prior year.

Non-interest Income
Non-interest income of $92.2 million for the first nine months of 2022 decreased $18.2 million, or 16 percent, over the same period last year and was primarily attributable to the $33.8 million, or 65 percent, decrease in gain on sale of residential loans. Service charges and other fees of $53.4 million for the first nine months of 2022 increased $11.6 million, or 28 percent, from the prior year same period as a result of additional fees from increased customer accounts, transaction activity and the acquisition of Alta. Miscellaneous loan fees and charges increased $3.2 million, or 38 percent, primarily driven by increases in credit card interchange fees due to increased activity.

Non-interest Expense Summary
Nine Months ended
(Dollars in thousands)Sep 30,
2022
Sep 30,
2021
$ Change% Change
Compensation and employee benefits$239,489 $192,941 $46,548 24 %
Occupancy and equipment32,527 28,135 4,392 16 %
Advertising and promotions10,766 8,513 2,253 26 %
Data processing22,744 16,002 6,742 42 %
Other real estate owned and foreclosed assets72 202 (130)(64)%
Regulatory assessments and insurance9,479 5,592 3,887 70 %
Core deposit intangibles amortization7,994 7,464 530 %
Other expenses66,818 41,926 24,892 59 %
Total non-interest expense$389,889 $300,775 $89,114 30 %

Total non-interest expense of $390 million for the first nine months of 2022 increased $89.1 million, or 30 percent, over the prior year same period. Excluding $59.1 million of non-interest expense from the Altabank division, $6.7 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $21.7 million, or 7 percent, from the prior year first nine months. Excluding the Alta division, compensation and employee benefits increased $18.6 million, or 10 percent, from prior year due to increased number of employees and salary increases. Other expenses for the first nine months of 2022 increased $24.9 million over prior year same period and was primarily driven by expenses related to the Alta division and a $7.5 million increase in acquisition related expenses. Acquisition-related expenses were $9.2 million in the current year compared to $1.7 million in the prior year same period.

Provision for Credit Losses
The provision for credit loss expense was $13.8 million for the first nine months of 2022, including provision for credit loss expense of $11.4 million on the loan portfolio and credit loss expense of $2.4 million on unfunded loan commitments. The provision for credit loss expense of $11.4 million on the loan portfolio in the current year increased $14.3 million over the provision for credit loss benefit of $2.9 million in the prior year which was primarily attributable to organic loan growth. Net charge-offs during the current year were $5.8 million compared to $1.7 million during the prior year.



10


Federal and State Income Tax Expense
Tax expense of $49.3 million in the first nine months of 2022 decreased $6.1 million, or 11 percent, over the prior year same period. The effective tax rate for 2022 was 18.1 percent compared to 19.1 percent in the prior year.

Efficiency Ratio
The efficiency ratio was 55.14 percent for the first nine months of 2022 compared to 48.94 percent for the same period last year. Excluding the impact from the PPP loans and acquisition related expenses, the efficiency ratio was 54.22 in 2022 compared to 51.84 in 2021 with the increase driven by the decrease in gain on the sale of residential loans and the increase in non-interest expense.

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

the risks associated with lending and potential adverse changes in the credit quality of loans in the Company’s portfolio;
changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, overall profitability, and stockholders’ equity;
legislative or regulatory changes, as well as increased banking and consumer protection regulation, that may adversely affect the Company’s business;
ability to complete pending or prospective future acquisitions;
costs or difficulties related to the completion and integration of acquisitions;
the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
reduced demand for banking products and services;
the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
competition among financial institutions in the Company's markets may increase significantly;
the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
11


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;
the effects from military action in Ukraine, including the broader impacts to financial markets and economic conditions; 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 21, 2022. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BI5d57c8bb72de4780ad1d8b419b9d998d. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/7o4jqa95. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.

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



12


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)Sep 30,
2022
Jun 30,
2022
Dec 31,
2021
Sep 30,
2021
Assets
Cash on hand and in banks$260,456 293,541 198,087 250,579 
Interest bearing cash deposits164,756 121,865 239,599 98,309 
Cash and cash equivalents425,212 415,406 437,686 348,888 
Debt securities, available-for-sale5,755,076 6,209,199 9,170,849 7,390,580 
Debt securities, held-to-maturity3,756,634 3,788,486 1,199,164 1,128,299 
Total debt securities9,511,710 9,997,685 10,370,013 8,518,879 
Loans held for sale, at fair value21,720 33,837 60,797 94,138 
Loans receivable14,851,233 14,399,755 13,432,031 11,293,891 
Allowance for credit losses(178,191)(172,963)(172,665)(153,609)
Loans receivable, net14,673,042 14,226,792 13,259,366 11,140,282 
Premises and equipment, net395,639 386,198 372,597 316,191 
Other real estate owned and foreclosed assets42 379 18 106 
Accrued interest receivable93,300 80,339 76,673 79,699 
Deferred tax asset204,351 147,263 27,693 — 
Core deposit intangible, net44,265 46,930 52,259 48,045 
Goodwill985,393 985,393 985,393 514,013 
Non-marketable equity securities38,215 33,215 10,020 10,021 
Bank-owned life insurance168,187 168,231 167,671 123,729 
Other assets171,878 168,337 120,459 120,028 
Total assets$26,732,954 26,690,005 25,940,645 21,314,019 
Liabilities
Non-interest bearing deposits$8,294,363 8,061,304 7,779,288 6,632,402 
Interest bearing deposits13,585,279 13,722,379 13,557,961 10,870,912 
Securities sold under agreements to repurchase887,483 968,197 1,020,794 1,040,939 
FHLB advances705,000 580,000 — — 
Other borrowed funds77,671 66,200 44,094 33,671 
Subordinated debentures132,742 132,701 132,620 132,580 
Accrued interest payable2,740 2,334 2,409 2,437 
Deferred tax liability— — — 1,815 
Other liabilities275,319 260,651 225,857 211,647 
Total liabilities23,960,597 23,793,766 22,763,023 18,926,403 
Commitments and Contingent Liabilities
Stockholders’ Equity
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding
— — — — 
Common stock, $0.01 par value per share, 234,000,000 and 117,187,500 shares authorized at September 30, 2022, and December 31, 2021, respectively
1,108 1,108 1,107 955 
Paid-in capital2,342,452 2,341,097 2,338,814 1,497,939 
Retained earnings - substantially restricted923,945 881,246 810,342 811,063 
Accumulated other comprehensive (loss) income(495,148)(327,212)27,359 77,659 
Total stockholders’ equity2,772,357 2,896,239 3,177,622 2,387,616 
Total liabilities and stockholders’ equity$26,732,954 26,690,005 25,940,645 21,314,019 

13


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 Three Months endedNine Months ended
(Dollars in thousands, except per share data)Sep 30,
2022
Jun 30,
2022
Mar 31,
2022
Sep 30,
2021
Sep 30,
2022
Sep 30,
2021
Interest Income
Debt securities$43,722 42,841 38,654 30,352 125,217 86,388 
Residential real estate loans13,738 13,026 15,515 9,885 42,279 29,572 
Commercial loans142,692 131,259 124,556 115,533 398,507 339,903 
Consumer and other loans14,250 12,511 11,791 10,971 38,552 32,386 
Total interest income214,402 199,637 190,516 166,741 604,555 488,249 
Interest Expense
Deposits3,279 3,141 3,464 2,609 9,884 8,427 
Securities sold under agreements to
  repurchase
675 367 393 496 1,435 1,836 
Federal Home Loan Bank advances3,318 1,298 12 — 4,628 — 
Other borrowed funds
214 264 220 178 698 529 
Subordinated debentures1,589 1,129 872 845 3,590 2,563 
Total interest expense9,075 6,199 4,961 4,128 20,235 13,355 
Net Interest Income205,327 193,438 185,555 162,613 584,320 474,894 
Provision for credit losses8,341 (1,533)7,031 725 13,839 (4,880)
Net interest income after provision for credit losses
196,986 194,971 178,524 161,888 570,481 479,774 
Non-Interest Income
Service charges and other fees18,970 17,309 17,111 15,154 53,390 41,741 
Miscellaneous loan fees and charges4,040 3,850 3,555 2,592 11,445 8,293 
Gain on sale of loans3,846 4,996 9,015 13,902 17,857 51,632 
(Loss) Gain on sale of debt securities(85)(260)446 (168)101 55 
Other income3,635 2,385 3,436 3,335 9,456 8,737 
Total non-interest income30,406 28,280 33,563 34,815 92,249 110,458 
Non-Interest Expense
Compensation and employee benefits80,612 79,803 79,074 66,364 239,489 192,941 
Occupancy and equipment10,797 10,766 10,964 9,412 32,527 28,135 
Advertising and promotions3,768 3,766 3,232 3,236 10,766 8,513 
Data processing7,716 7,553 7,475 5,135 22,744 16,002 
Other real estate owned and foreclosed
  assets
66 — 142 72 202 
Regulatory assessments and insurance
3,339 3,085 3,055 2,011 9,479 5,592 
Core deposit intangibles amortization2,665 2,665 2,664 2,488 7,994 7,464 
Other expenses21,097 21,877 23,844 15,320 66,818 41,926 
Total non-interest expense130,060 129,521 130,308 104,108 389,889 300,775 
Income Before Income Taxes97,332 93,730 81,779 92,595 272,841 289,457 
Federal and state income tax expense17,994 17,338 13,984 16,976 49,316 55,409 
Net Income$79,338 76,392 67,795 75,619 223,525 234,048 

14


Glacier Bancorp, Inc.
Average Balance Sheets
Three Months ended
September 30, 2022June 30, 2022
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$1,338,606 $13,738 4.11 %$1,229,013 $13,026 4.24 %
Commercial loans 1
12,146,551 144,357 4.72 %11,712,381 132,799 4.55 %
Consumer and other loans1,156,305 14,250 4.89 %1,107,396 12,511 4.53 %
Total loans 2
14,641,462 172,345 4.67 %14,048,790 158,336 4.52 %
Tax-exempt debt securities 3
2,000,404 18,484 3.70 %1,979,865 18,413 3.72 %
Taxable debt securities 4
8,426,933 29,297 1.39 %8,685,641 28,473 1.31 %
Total earning assets25,068,799 220,126 3.48 %24,714,296 205,222 3.33 %
Goodwill and intangibles1,030,961 1,033,601 
Non-earning assets604,754 619,671 
Total assets$26,704,514 $26,367,568 
Liabilities
Non-interest bearing deposits$8,158,207 $— — %$7,991,993 $— — %
NOW and DDA accounts5,473,458 794 0.06 %5,405,470 723 0.05 %
Savings accounts3,319,167 260 0.03 %3,261,798 244 0.03 %
Money market deposit accounts3,999,758 1,483 0.15 %3,999,582 1,369 0.14 %
Certificate accounts940,507 722 0.30 %982,397 797 0.33 %
Total core deposits21,891,097 3,259 0.06 %21,641,240 3,133 0.06 %
Wholesale deposits 5
3,946 20 2.05 %3,877 0.71 %
Repurchase agreements917,104 675 0.29 %923,459 367 0.16 %
FHLB advances541,630 3,318 2.40 %476,978 1,298 1.08 %
Subordinated debentures and other borrowed funds202,383 1,803 3.54 %190,072 1,393 2.94 %
Total funding liabilities23,556,160 9,075 0.15 %23,235,626 6,199 0.11 %
Other liabilities261,735 235,814 
Total liabilities23,817,895 23,471,440 
Stockholders’ Equity
Common stock1,108 1,108 
Paid-in capital2,341,648 2,340,059 
Retained earnings920,372 875,276 
Accumulated other comprehensive (loss) income(376,509)(320,315)
Total stockholders’ equity2,886,619 2,896,128 
Total liabilities and stockholders’ equity$26,704,514 $26,367,568 
Net interest income (tax-equivalent)$211,051 $199,023 
Net interest spread (tax-equivalent)3.33 %3.22 %
Net interest margin (tax-equivalent)3.34 %3.23 %
______________________________
1 Includes tax effect of $1.7 million and $1.5 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2022 and June 30, 2022, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.8 million and $3.8 million on tax-exempt debt securities income for the three months ended September 30, 2022 and June 30, 2022, respectively.
4 Includes tax effect of $225 thousand and $226 thousand on federal income tax credits for the three months ended September 30, 2022 and June 30, 2022, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

15


Glacier Bancorp, Inc.
Average Balance Sheets (continued)
Three Months ended
 September 30, 2022September 30, 2021
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$1,338,606 $13,738 4.11 %$817,150 $9,885 4.84 %
Commercial loans 1
12,146,551 144,357 4.72 %9,468,440 116,963 4.90 %
Consumer and other loans1,156,305 14,250 4.89 %974,582 10,971 4.47 %
Total loans 2
14,641,462 172,345 4.67 %11,260,172 137,819 4.86 %
Tax-exempt debt securities 3
2,000,404 18,484 3.70 %1,548,447 14,711 3.80 %
Taxable debt securities 4
8,426,933 29,297 1.39 %6,767,418 18,896 1.12 %
Total earning assets25,068,799 220,126 3.48 %19,576,037 171,426 3.47 %
Goodwill and intangibles1,030,961 563,257 
Non-earning assets604,754 803,226 
Total assets$26,704,514 $20,942,520 
Liabilities
Non-interest bearing deposits$8,158,207 $— — %$6,505,530 $— — %
NOW and DDA accounts5,473,458 794 0.06 %4,261,648 597 0.06 %
Savings accounts3,319,167 260 0.03 %2,440,332 146 0.02 %
Money market deposit accounts3,999,758 1,483 0.15 %3,041,634 814 0.11 %
Certificate accounts940,507 722 0.30 %928,165 1,036 0.44 %
Total core deposits21,891,097 3,259 0.06 %17,177,309 2,593 0.06 %
Wholesale deposits 5
3,946 20 2.05 %26,117 16 0.24 %
Repurchase agreements917,104 675 0.29 %988,283 495 0.20 %
FHLB advances541,630 3,318 2.40 %— — — %
Subordinated debentures and other borrowed funds202,383 1,803 3.54 %166,151 1,024 2.44 %
Total funding liabilities23,556,160 9,075 0.15 %18,357,860 4,128 0.09 %
Other liabilities261,735 182,573 
Total liabilities23,817,895 18,540,433 
Stockholders’ Equity
Common stock1,108 955 
Paid-in capital2,341,648 1,497,107 
Retained earnings920,372 805,253 
Accumulated other comprehensive (loss) income
(376,509)98,772 
Total stockholders’ equity2,886,619 2,402,087 
Total liabilities and stockholders’ equity
$26,704,514 $20,942,520 
Net interest income (tax-equivalent)$211,051 $167,298 
Net interest spread (tax-equivalent)3.33 %3.38 %
Net interest margin (tax-equivalent)3.34 %3.39 %
______________________________
1 Includes tax effect of $1.7 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2022 and 2021, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.8 million and $3.0 million on tax-exempt debt securities income for the three months ended September 30, 2022 and 2021, respectively.
4 Includes tax effect of $225 thousand and $255 thousand on federal income tax credits for the three months ended September 30, 2022 and 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

16


Glacier Bancorp, Inc.
Average Balance Sheets (continued)
Nine Months ended
 September 30, 2022September 30, 2021
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$1,236,674 $42,279 4.56 %$844,945 $29,572 4.67 %
Commercial loans 1
11,728,932 403,075 4.59 %9,467,329 344,117 4.86 %
Consumer and other loans1,113,232 38,552 4.63 %963,002 32,386 4.50 %
Total loans 2
14,078,838 483,906 4.60 %11,275,276 406,075 4.82 %
Tax-exempt debt securities 3
1,902,147 52,561 3.68 %1,547,429 44,162 3.81 %
Taxable debt securities 4
8,663,590 84,235 1.30 %5,771,573 51,998 1.20 %
Total earning assets24,644,575 620,702 3.37 %18,594,278 502,235 3.61 %
Goodwill and intangibles1,033,606 565,724 
Non-earning assets659,727 816,982 
Total assets$26,337,908 $19,976,984 
Liabilities
Non-interest bearing deposits$8,004,395 $— — %$6,069,326 $— — %
NOW and DDA accounts5,387,013 2,362 0.06 %4,057,019 1,768 0.06 %
Savings accounts3,276,092 836 0.03 %2,277,335 425 0.02 %
Money market deposit accounts4,009,931 4,233 0.14 %2,895,362 2,540 0.12 %
Certificate accounts980,543 2,416 0.33 %951,655 3,640 0.51 %
Total core deposits21,657,974 9,847 0.06 %16,250,697 8,373 0.07 %
Wholesale deposits 5
8,290 37 0.59 %32,787 55 0.22 %
Repurchase agreements936,840 1,435 0.20 %988,092 1,835 0.25 %
FHLB advances346,465 4,628 1.76 %— — — %
Subordinated debentures and other borrowed funds190,810 4,288 3.00 %165,996 3,092 2.49 %
Total funding liabilities23,140,379 20,235 0.12 %17,437,572 13,355 0.10 %
Other liabilities249,001 181,640 
Total liabilities23,389,380 17,619,212 
Stockholders’ Equity
Common stock1,107 955 
Paid-in capital2,340,208 1,496,051 
Retained earnings881,208 757,666 
Accumulated other comprehensive income
(273,995)103,100 
Total stockholders’ equity2,948,528 2,357,772 
Total liabilities and stockholders’ equity
$26,337,908 $19,976,984 
Net interest income (tax-equivalent)$600,467 $488,880 
Net interest spread (tax-equivalent)3.25 %3.51 %
Net interest margin (tax-equivalent)3.26 %3.52 %
______________________________
1 Includes tax effect of $4.6 million and $4.2 million on tax-exempt municipal loan and lease income for the nine months ended September 30, 2022 and 2021, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $10.9 million and $9.0 million on tax-exempt debt securities income for the nine months ended September 30, 2022 and 2021, respectively.
4 Includes tax effect of $676 thousand and $766 thousand on federal income tax credits for the nine months ended September 30, 2022 and 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.
Loan Portfolio by Regulatory Classification
 Loans Receivable, by Loan Type% Change from
(Dollars in thousands)Sep 30,
2022
Jun 30,
2022
Dec 31,
2021
Sep 30,
2021
Jun 30,
2022
Dec 31,
2021
Sep 30,
2021
Custom and owner occupied construction
$288,977 $282,916 $263,758 $170,489 %10 %69 %
Pre-sold and spec construction291,146 269,568 257,568 188,668 %13 %54 %
Total residential construction
580,123 552,484 521,326 359,157 5 %11 %62 %
Land development217,878 201,607 185,200 151,640 %18 %44 %
Consumer land or lots204,241 197,394 173,305 143,977 %18