January 26, 2023

4th Quarter 2022 Highlights:

•Net income was $79.7 million for the current quarter, an increase of $339 thousand, or 43 basis points, from the prior quarter net income of $79.3 million. Net income for the current quarter increased $29.0 million, or 57 percent, over the prior year fourth quarter net income of $50.7 million.

•The loan portfolio, excluding the Paycheck Protection Program (“PPP”) loans, grew $397 million, or 11 percent annualized, in the current quarter.

•The loan yield for the current quarter of 4.83 percent, increased 16 basis points, compared to 4.67 percent in the prior quarter and increased 13 basis points from the prior year fourth quarter loan yield of 4.70 percent.

•Interest income of $225 million in the current quarter increased $10.7 million, or 5 percent, over the prior quarter interest income of $214 million. Interest income in the current quarter increased $32.3 million, or 17 percent, over the prior year fourth quarter.

•Non-interest expense of $129.0 million, decreased $1.1 million, or 1 percent, over prior quarter, and decreased $5.1 million, or 4 percent over the prior year fourth quarter.

•Non-performing assets as a percentage of subsidiary assets was 0.12 percent in the current quarter compared to 0.13 percent in the prior quarter and 0.26 percent in the prior year fourth quarter.

•The Company declared a quarterly dividend of $0.33 per share. The Company has declared 151 consecutive quarterly dividends and has increased the dividend 49 times.

Year 2022 Highlights:

•Record net income of $303 million for 2022 increased $18.4 million, or 6 percent, compared to the prior year net income.

•The loan portfolio, excluding the PPP loans, grew $1.974 billion, or 15 percent annualized, in 2022.

•Interest income of $830 million in the current year increased $149 million, or 22 percent, over the prior year interest income of $681 million.

•Declared regular total dividends in 2022 of $1.32 per share, an increase of $0.05 per share, or 4 percent, over the prior year regular dividends of $1.27.

Financial Summary

			At or for the Three Months ended																														At or for the Year ended
(Dollars in thousands, except per share and market data)			Dec 31, 2022						Sep 30, 2022						Jun 30, 2022						Mar 31, 2022						Dec 31, 2021						Dec 31, 2022						Dec 31, 2021
Operating results
Net income			$	79,677					79,338						76,392						67,795						50,709						303,202						284,757
Basic earnings per share			$	0.72					0.72						0.69						0.61						0.46						2.74						2.87
Diluted earnings per share			$	0.72					0.72						0.69						0.61						0.46						2.74						2.86
Dividends declared per share1			$	0.33					0.33						0.33						0.33						0.42						1.32						1.37
Market value per share
Closing			$	49.42					49.13						47.42						50.28						56.70						49.42						56.70
High			$	59.70					56.10						51.40						60.69						60.54						60.69						67.35
Low			$	48.64					46.08						44.43						49.61						52.62						44.43						44.55
Selected ratios and other data
Number of common stock shares outstanding			110,777,780						110,766,954						110,766,287						110,763,316						110,687,533						110,777,780						110,687,533
Average outstanding shares - basic			110,773,084						110,766,502						110,765,379						110,724,655						110,687,365						110,757,473						99,313,255
Average outstanding shares - diluted			110,872,127						110,833,594						110,794,982						110,800,001						110,789,632						110,827,933						99,398,250
Return on average assets (annualized)			1.19		%				1.18		%				1.16		%				1.06		%				0.78		%				1.15		%				1.33		%
Return on average equity (annualized)			11.35		%				10.94		%				10.55		%				8.97		%				6.28		%				10.43		%				11.08		%
Efficiency ratio			53.18		%				52.76		%				55.74		%				57.11		%				57.68		%				54.64		%				51.35		%
Dividend payout2			45.83		%				45.83		%				47.83		%				54.10		%				91.30		%				48.18		%				47.74		%
Loan to deposit ratio			74.05		%				67.98		%				66.26		%				63.52		%				63.24		%				74.05		%				63.24		%
Number of full time equivalent employees			3,390						3,396						3,439						3,439						3,436						3,390						3,436
Number of locations			221						222						224						223						224						221						224
Number of ATMs			265						272						274						273						273						265						273

______________________

1 Includes a special dividend declared of $0.10 per share for the three and twelve months ended December 31, 2021.

2 Excluding the special dividend, the dividend payout ratio was 69.57 percent for the three months ended December 31, 2021 and 44.25 percent for the twelve months ended December 31, 2021.

KALISPELL, Mont., Jan 26, 2023 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $79.7 million for the current quarter, an increase of $29.0 million, or 57 percent, from the $50.7 million of net income for the prior year fourth quarter. Diluted earnings per share for the current quarter was $0.72 per share, an increase of 57 percent from the prior year fourth quarter diluted earnings per share of $0.46. The $29.0 million net income increase over the prior year fourth quarter was driven by a $24.2 million increase in interest income on loans and a $21.8 million decrease in credit loss expense driven by the prior year credit loss expense from the acquisition of Altabancorp and its Altabank subsidiary (“Alta”) on October 1, 2021. Included in the current quarter non-interest expense was a $2.5 million gain on the sale of former branch buildings. “We were pleased to see healthy loan growth, continued strong credit, increasing loan yields and well managed expenses,” said Randy Chesler, President and Chief Executive Officer. “The Glacier team had many important accomplishments in 2022 and is ready and well positioned for 2023.”

Net income for 2022 was $303 million, an increase of $18.4 million, or 6 percent, from the $285 million net income for the prior year. Diluted earnings per share for 2022 was $2.74 per share, a decrease of 4 percent from the prior year earnings per share of $2.86. The $18.4 million increase in net income over the prior year was driven by a $125.9 million increase in net interest income from both organic loan growth and the acquisition of Alta which more than offset the $43.0 million decrease in gain on sale of loans, a $40.0 million decrease in PPP related income, and an $84.0 million increase in non-interest expense from the acquisition of Alta and increased operating expenses.

Asset Summary

																											$ Change from
(Dollars in thousands)			Dec 31, 2022						Sep 30, 2022						Dec 31, 2021												Sep 30, 2022						Dec 31, 2021
Cash and cash equivalents			$	401,995					425,212						437,686												(23,217)						(35,691)
Debt securities, available-for-sale			5,307,307						5,755,076						9,170,849												(447,769)						(3,863,542)
Debt securities, held-to-maturity			3,715,052						3,756,634						1,199,164												(41,582)						2,515,888
Total debt securities			9,022,359						9,511,710						10,370,013												(489,351)						(1,347,654)
Loans receivable
Residential real estate			1,446,008						1,368,368						1,051,883												77,640						394,125
Commercial real estate			9,797,047						9,582,989						8,630,831												214,058						1,166,216
Other commercial			2,799,668						2,729,717						2,664,190												69,951						135,478
Home equity			822,232						793,556						736,288												28,676						85,944
Other consumer			381,857						376,603						348,839												5,254						33,018
Loans receivable			15,246,812						14,851,233						13,432,031												395,579						1,814,781
Allowance for credit losses			(182,283)						(178,191)						(172,665)												(4,092)						(9,618)
Loans receivable, net			15,064,529						14,673,042						13,259,366												391,487						1,805,163
Other assets			2,146,492						2,122,990						1,873,580												23,502						272,912
Total assets			$	26,635,375					26,732,954						25,940,645												(97,579)						694,730

Total debt securities of $9.022 billion at December 31, 2022 decreased $489 million, or 5 percent, during the current quarter and decreased $1.348 billion, or 13 percent, from the prior year end. The Company continues to selectively sell debt securities to fund organic loan growth and the reduction in deposits. Debt securities represented 34 percent of total assets at December 31, 2022 compared to 40 percent at December 31, 2021.

Excluding the PPP loans, during the current quarter the loan portfolio increased $397 million, or 11 percent annualized, with the largest dollar increase in commercial real estate which increased $214 million, or 9 percent annualized. Excluding the PPP loans, the loan portfolio increased $1.974 billion, or 15 percent, from the prior year fourth quarter with the largest dollar increase in commercial real estate loans which increased $1.166 billion, or 14 percent.

Credit Quality Summary

			At or for the Year ended						At or for the Nine Months ended						At or for the Year ended
(Dollars in thousands)			Dec 31, 2022						Sep 30, 2022						Dec 31, 2021
Allowance for credit losses
Balance at beginning of period			$	172,665					172,665						158,243
Acquisitions			—						—						371
Provision for credit losses			17,433						11,373						16,380
Charge-offs			(14,970)						(10,905)						(11,594)
Recoveries			7,155						5,058						9,265
Balance at end of period			$	182,283					178,191						172,665
Provision for credit losses
Loan portfolio			$	17,433					11,373						16,380
Unfunded loan commitments			2,530						2,466						6,696
Total provision for credit losses			$	19,963					13,839						23,076
Other real estate owned			$	—					—						—
Other foreclosed assets			32						42						18
Accruing loans 90 days or more past due			1,559						2,524						17,141
Non-accrual loans			31,151						32,493						50,532
Total non-performing assets			$	32,742					35,059						67,691
Non-performing assets as a percentage of subsidiary assets			0.12		%				0.13		%				0.26		%
Allowance for credit losses as a percentage of non-performing loans			557		%				508		%				255		%
Allowance for credit losses as a percentage of total loans			1.20		%				1.20		%				1.29		%
Net charge-offs as a percentage of total loans			0.05		%				0.04		%				0.02		%
Accruing loans 30-89 days past due			$	20,967					10,922						50,566
Accruing troubled debt restructurings			$	35,220					37,608						34,591
Non-accrual troubled debt restructurings			$	2,355					2,355						2,627
U.S. government guarantees included in non-performing assets			$	2,312					4,930						4,028

Non-performing assets of $32.7 million at December 31, 2022 decreased $2.3 million, or 7 percent, over the prior quarter and decreased $34.9 million, or 52 percent, over prior year fourth quarter. Non-performing assets as a percentage of subsidiary assets at December 31, 2022 was 0.12 percent compared to 0.13 percent in the prior quarter and 0.26 percent in the prior year fourth quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $21.0 million at December 31, 2022 increased $10.0 million from the prior quarter and decreased $29.6 million from the prior year fourth quarter. Early stage delinquencies as a percentage of loans at December 31, 2022 was 14 basis points, which compared to 7 basis points in the prior quarter and 38 basis points from prior year fourth quarter.

The current quarter credit loss expense of $6.1 million included $6.1 million of credit loss expense from loans and $65 thousand of credit loss expense from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at December 31, 2022 was 1.20 percent which was the same compared to the prior quarter and a 9 basis points decrease from the prior year end.

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

(Dollars in thousands)			Provision for Credit Losses Loans						Net Charge-Offs (Recoveries)						ACL as a Percent of Loans						Accruing Loans 30-89 Days Past Due as a Percent of Loans						Non-Performing Assets to Total Subsidiary Assets
Fourth quarter 2022			$	6,060					$	1,968					1.20		%				0.14		%				0.12		%
Third quarter 2022			8,382						3,154						1.20		%				0.07		%				0.13		%
Second quarter 2022			(1,353)						1,843						1.20		%				0.12		%				0.16		%
First quarter 2022			4,344						850						1.28		%				0.12		%				0.24		%
Fourth quarter 2021			19,301						616						1.29		%				0.38		%				0.26		%
Third quarter 2021			2,313						152						1.36		%				0.23		%				0.24		%
Second quarter 2021			(5,723)						(725)						1.35		%				0.11		%				0.26		%
First quarter 2021			489						2,286						1.39		%				0.40		%				0.19		%

Net charge-offs for the current quarter of $2.0 million compared to $3.2 million for the prior quarter and $616 thousand from the same quarter last year. Net charge-offs of $2.0 million included $2.1 million in deposit overdraft net charge-offs and $91 thousand of net loan recoveries.

The current quarter provision for credit loss expense for loans was $6.1 million which was a decrease of $2.3 million from the prior quarter. The prior year fourth quarter credit loss expense of $19.3 million on the loan portfolio included $18.1 million of provision for credit loss from the acquisition of Alta to fully fund an allowance for credit losses post-acquisition. Excluding the impact from the acquisition of Alta, the current quarter provision for credit loss expense for loans increased $4.8 million from the prior year fourth quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

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

Liability Summary

																											$ Change from
(Dollars in thousands)			Dec 31, 2022						Sep 30, 2022						Dec 31, 2021												Sep 30, 2022						Dec 31, 2021
Deposits
Non-interest bearing deposits			$	7,690,751					8,294,363						7,779,288												(603,612)						(88,537)
NOW and DDA accounts			5,330,614						5,462,707						5,301,832												(132,093)						28,782
Savings accounts			3,200,321						3,305,333						3,180,046												(105,012)						20,275
Money market deposit accounts			3,472,281						3,905,676						4,014,128												(433,395)						(541,847)
Certificate accounts			880,589						907,560						1,036,077												(26,971)						(155,488)
Core deposits, total			20,574,556						21,875,639						21,311,371												(1,301,083)						(736,815)
Wholesale deposits			31,999						4,003						25,878												27,996						6,121
Deposits, total			20,606,555						21,879,642						21,337,249												(1,273,087)						(730,694)
Repurchase agreements			945,916						887,483						1,020,794												58,433						(74,878)
Federal Home Loan Bank advances			1,800,000						705,000						—												1,095,000						1,800,000
Other borrowed funds			77,293						77,671						44,094												(378)						33,199
Subordinated debentures			132,782						132,742						132,620												40						162
Other liabilities			229,524						278,059						228,266												(48,535)						1,258
Total liabilities			$	23,792,070					23,960,597						22,763,023												(168,527)						1,029,047

Core deposits of $20.575 billion decreased $1.301 billion, or 6 percent, during the current quarter and decreased $737 million, or 3 percent, from the prior year end. Non-interest bearing deposits were 37 percent of total core deposits at December 31, 2022 and December 31, 2021.

Federal Home Loan Bank (“FHLB”) advances increased $1.095 billion during the current quarter and $1.800 billion during 2022 to support liquidity needs from organic loan growth and the decrease in deposits.

Stockholders’ Equity Summary

																											$ Change from
(Dollars in thousands, except per share data)			Dec 31, 2022						Sep 30, 2022						Dec 31, 2021												Sep 30, 2022						Dec 31, 2021
Common equity			$	3,312,097					3,267,505						3,150,263												44,592						161,834
Accumulated other comprehensive (loss) income			(468,792)						(495,148)						27,359												26,356						(496,151)
Total stockholders’ equity			2,843,305						2,772,357						3,177,622												70,948						(334,317)
Goodwill and core deposit intangible, net			(1,026,994)						(1,029,658)						(1,037,652)												2,664						10,658
Tangible stockholders’ equity			$	1,816,311					1,742,699						2,139,970												73,612						(323,659)

Stockholders’ equity to total assets			10.67		%				10.37		%				12.25		%
Tangible stockholders’ equity to total tangible assets			7.09		%				6.78		%				8.59		%
Book value per common share			$	25.67					25.03						28.71												0.64						(3.04)
Tangible book value per common share			$	16.40					15.73						19.33												0.67						(2.93)

Tangible stockholders’ equity of $1.816 billion at December 31, 2022 increased $73.6 million, or 4 percent, from the prior quarter which was primarily driven by earnings retention and the decrease in the unrealized loss on the available-for-sale (“AFS”) debt securities during the current quarter. Tangible stockholders’ equity decreased by $324 million from the prior year as a result of an increase in unrealized loss on the AFS debt securities which resulted from the significant increase in interest rates during the current year. Tangible book value per common share of $16.40 at the current quarter end increased $0.67 per share, or 4 percent, from the prior quarter.

The tangible book value per common share decreased $2.93 per share, or 15 percent, from the prior year fourth quarter primarily as a result of the increase in the unrealized loss on AFS debt securities.

Cash Dividends

On November 16, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable December 15, 2022 to shareholders of record on December 6, 2022. The dividend was the Company’s 151st consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Income Summary

			Three Months ended
(Dollars in thousands)			Dec 31, 2022						Sep 30, 2022						Jun 30, 2022						Mar 31, 2022						Dec 31, 2021
Net interest income
Interest income			$	225,085					214,402						199,637						190,516						192,825
Interest expense			21,026						9,075						6,199						4,961						5,203
Total net interest income			204,059						205,327						193,438						185,555						187,622
Non-interest income
Service charges and other fees			18,734						18,970						17,309						17,111						17,576
Miscellaneous loan fees and charges			3,905						4,040						3,850						3,555						3,745
Gain on sale of loans			2,175						3,846						4,996						9,015						11,431
Gain (loss) on sale of investments			519						(85)						(260)						446						(693)
Other income			3,150						3,635						2,385						3,436						2,303
Total non-interest income			28,483						30,406						28,280						33,563						34,362
Total income			232,542						235,733						221,718						219,118						221,984
Net interest margin (tax-equivalent)			3.30		%				3.34		%				3.23		%				3.20		%				3.21		%
									$ Change from
(Dollars in thousands)									Sep 30, 2022						Jun 30, 2022						Mar 31, 2022						Dec 31, 2021
Net interest income
Interest income									$	10,683					25,448						34,569						32,260
Interest expense									11,951						14,827						16,065						15,823
Total net interest income									(1,268)						10,621						18,504						16,437
Non-interest income
Service charges and other fees									(236)						1,425						1,623						1,158
Miscellaneous loan fees and charges									(135)						55						350						160
Gain on sale of loans									(1,671)						(2,821)						(6,840)						(9,256)
Gain (loss) on sale of investments									604						779						73						1,212
Other income									(485)						765						(286)						847
Total non-interest income									(1,923)						203						(5,080)						(5,879)
Total income									$	(3,191)					10,824						13,424						10,558

The current quarter net interest income of $204 million decreased $1.3 million, or 1 percent, compared to the prior quarter and increased $16.4 million, or 9 percent, from the prior year fourth quarter. The current quarter interest income of $225 million increased $10.7 million, or 5 percent, over the prior quarter and was driven primarily by the increase in the loan portfolio and an increase in loan yields. The current quarter interest income increased $32.3 million, or 17 percent, over the prior year fourth quarter due to organic loan growth and increased loan yields, which more than offset the $8.5 million decrease in interest income from the PPP loans.

The current quarter interest expense of $21.0 million increased $12.0 million, or 132 percent, over the prior quarter and increased $15.8 million, or 304 percent, over the prior year fourth quarter primarily the result of an increase in borrowings to fund the Company’s loan growth and reduction in deposits. Core deposit cost (including non-interest bearing deposits) was 8 basis points for the current quarter compared to 6 basis points in the prior quarter and 7 basis points for the prior year fourth quarter. The total cost of funding (including non-interest bearing deposits) was 35 basis points in the current quarter compared to 15 basis points in the prior quarter and 9 basis points in the prior year fourth quarter which was the result of 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 3.30 percent compared to 3.34 percent in the prior quarter and 3.21 percent in the prior year fourth quarter. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 3.27 percent compared to 3.29 percent in the prior quarter and 3.04 percent in the prior year fourth quarter. The core net interest margin decreased 2 basis points in the current quarter as a result of increased borrowing costs. The core loan yield of 4.79 percent in the current quarter increased 19 basis points from the prior quarter core loan yield of 4.60 percent and increased 36 basis points from the prior year fourth quarter core loan yield of 4.43 percent. “The Bank divisions have been excellent in pricing loans at higher yields as interest rates have increased,” said Ron Copher, Chief Financial Officer.

Non-interest income for the current quarter totaled $28.5 million which was a decrease of $1.9 million, or 6 percent, over the prior quarter and a decrease of $5.9 million, or 17 percent, over the same quarter last year which was primarily driven by the decrease in gain on sale of residential loans. Gain on the sale of residential loans of $2.2 million for the current quarter decreased $1.7 million, or 43 percent, compared to the prior quarter and decreased $9.3 million, or 81 percent, from the prior year fourth 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
(Dollars in thousands)			Dec 31, 2022						Sep 30, 2022						Jun 30, 2022						Mar 31, 2022						Dec 31, 2021
Compensation and employee benefits			$	79,814					80,612						79,803						79,074						77,703
Occupancy and equipment			10,734						10,797						10,766						10,964						11,259
Advertising and promotions			3,558						3,768						3,766						3,232						3,436
Data processing			8,079						7,716						7,553						7,475						7,468
Other real estate owned and foreclosed assets			5						66						6						—						34
Regulatory assessments and insurance			3,425						3,339						3,085						3,055						2,657
Core deposit intangibles amortization			2,664						2,665						2,665						2,664						2,807
Other expenses			20,700						21,097						21,877						23,844						28,683
Total non-interest expense			$	128,979					130,060						129,521						130,308						134,047
									$ Change from
(Dollars in thousands)									Sep 30, 2022						Jun 30, 2022						Mar 31, 2022						Dec 31, 2021
Compensation and employee benefits									$	(798)					11						740						2,111
Occupancy and equipment									(63)						(32)						(230)						(525)
Advertising and promotions									(210)						(208)						326						122
Data processing									363						526						604						611
Other real estate owned and foreclosed assets									(61)						(1)						5						(29)
Regulatory assessments and insurance									86						340						370						768
Core deposit intangibles amortization									(1)						(1)						—						(143)
Other expenses									(397)						(1,177)						(3,144)						(7,983)
Total non-interest expense									$	(1,081)					(542)						(1,329)						(5,068)

Total non-interest expense of $129 million for the current quarter decreased $1.1 million, or 1 percent, over the prior quarter. Excluding a current quarter $2.5 million gain on the sale of former branch buildings included in other expenses, total non-interest expense was $131 million for the current quarter which increased $1.1 million or 1 percent, over the prior quarter which was driven by several miscellaneous category increases.

Total non-interest expense for the current quarter decreased $5.1 million, or 4 percent over the prior year fourth quarter. Compensation and employee benefit expense of $79.8 million increased $2.1 million, or 3 percent, over the prior year fourth quarter primarily from annual salary increases and benefit adjustments which more than offset the decrease in commission expense resulting from the slowing of mortgage loan sales. Other expense of $20.7 million for the current quarter decreased $8.0 million or 28 percent from the prior year fourth quarter and was the result of the decrease in acquisition-related expenses and the current quarter gain on the sale of the former branch buildings. Acquisition-related expenses was $804 thousand in the current quarter compared to $892 thousand in the prior quarter and $8.2 million in the prior year fourth quarter.

Tax expense during the fourth quarter of 2022 was $17.8 million, a decrease of $232 thousand, or 1 percent, compared to the prior quarter and an increase of $8.5 million, or 92 percent, from the prior year fourth quarter. The effective tax rate in the current quarter was 18.2 percent compared to 18.5 percent in the prior quarter and 15.5 percent in the prior year fourth quarter.

The efficiency ratio was 53.18 percent in the current quarter compared to 52.76 percent in the prior quarter and 57.68 percent in the prior year fourth quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 52.84 percent in the current quarter compared to 52.39 percent in the prior quarter and 54.09 percent in the prior year fourth quarter.

Income Summary

			Year ended
(Dollars in thousands)			Dec 31, 2022						Dec 31, 2021						$ Change						% Change
Net interest income
Interest income			$	829,640					$	681,074					$	148,566					22		%
Interest expense			41,261						18,558						22,703						122		%
Total net interest income			788,379						662,516						125,863						19		%
Non-interest income
Service charges and other fees			72,124						59,317						12,807						22		%
Miscellaneous loan fees and charges			15,350						12,038						3,312						28		%
Gain on sale of loans			20,032						63,063						(43,031)						(68)		%
Gain on sale of investments			620						(638)						1,258						(197)		%
Other income			12,606						11,040						1,566						14		%
Total non-interest income			120,732						144,820						(24,088)						(17)		%
Total Income			$	909,111					$	807,336					$	101,775					13		%
Net interest margin (tax-equivalent)			3.27		%				3.42		%

Net-interest income of $788 million for 2022 increased $126 million, or 19 percent, over 2021. Interest income of $830 million for the current year increased $149 million, or 22 percent, from the prior year and was primarily attributable to the acquisition of Alta and organic loan growth.

Interest expense of $41.3 million for 2022 increased $22.7 million, or 122 percent over the prior year and was the result of increased borrowings and higher interest rates. Core deposit cost (including non-interest bearing deposits) was 7 basis points for both 2022 and 2021. The total funding cost (including non-interest bearing deposits) for 2022 was 18 basis points, which increased 8 basis points compared to 10 basis points in 2021 driven by the increased borrowing rates.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 2022 was 3.27 percent, a 15 basis points decrease from the net interest margin of 3.42 percent for the same period in the prior year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 3.20 percent which was a 4 basis point decrease from the core margin of 3.24 percent in the prior year.

Non-interest income of $120.7 million for 2022 decreased $24.1 million, or 17 percent, over the same period last year and was principally due to the $43.0 million, or 68 percent, decrease in gain on sale of residential loans. Service charges and other fees of $72.1 million for 2022 increased $12.8 million, or 22 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 $3.3 million, or 28 percent, primarily driven by increases in credit card interchange fees due to increased activity and the acquisition of Alta.

Non-interest Expense Summary

Total non-interest expense of $519 million for 2022 increased $84.0 million, or 19 percent, over the prior year and was primarily driven by the increased costs from the acquisition of Alta. Total non-interest expense for Altabank division in 2022 was $75.5 million, an increase of $56.7 million over prior year non-interest expense of $18.9 million as a result of the acquisition occurring in the fourth quarter of 2021. Excluding the increase from the Altabank division, compensation and employee benefits increased $22.0 million, or 8 percent, over the prior year which was driven by annual salary increases and a reduction in deferred compensation from loan originations which more than offset the decrease in commission expense resulting from the slowing of mortgage loan sales. Data processing expense of $30.8 million for 2022, increased $7.4 million, or 31 percent, and was driven by increases from the Altabank division and expenses associated with technology infrastructure improvements. Other expenses of $87.5 million for 2022, increased $16.9 million, or 24 percent, from the prior year which was driven by increased costs from the Altabank division, general operating cost increases, and outside services associated with technology infrastructure improvements. Acquisition-related expenses were $10.0 million in the current year compared to $9.8 million in the prior year.

Provision for Credit Losses

The provision for credit loss expense was $19.9 million for 2022, including provision for credit loss expense of $17.4 million on the loan portfolio and credit loss expense of $2.5 million on unfunded loan commitments. The prior year credit loss expense of $16.4 million on the loan portfolio included $18.1 million of provision for credit loss from the acquisition of Alta to fully fund an allowance for credit losses post-acquisition. Excluding the impact from the acquisition of Alta, the provision for credit loss expense of $17.4 million on the loan portfolio in the current year increased $19.1 million over the prior year which was primarily attributable to organic loan growth during the current year. Net charge-offs during the current year were $7.8 million compared to $2.3 million during the prior year.

Tax expense of $67.1 million for 2022 increased $2.4 million, or 4 percent, over the prior year. The effective tax rate for 2022 was 18.1 percent compared to 18.5 percent in the prior year.

The efficiency ratio was 54.64 percent for 2022 compared to 51.35 percent for last year. Excluding the impact from the PPP loans and acquisition related expenses, the efficiency ratio was 53.88 percent in 2022 compared to 53.07 percent in 2021.

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;

•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, January 27, 2023. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BIc0df24de0cb44359909dc4a7bbc51bb5. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/2jvw627b. 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).

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1 Includes tax effect of $1.7 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2022 and September 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 $3.6 million and $3.8 million on tax-exempt debt securities income for the three months ended December 31, 2022 and September 30, 2022, respectively.

4 Includes tax effect of $225 thousand and $225 thousand on federal income tax credits for the three months ended December 31, 2022 and September 30, 2022, respectively.

5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

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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 December 31, 2022 and 2021, respectively.

2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.

3 Includes tax effect of $3.6 million and $3.2 million on tax-exempt debt securities income for the three months ended December 31, 2022 and 2021, respectively.

4 Includes tax effect of $225 thousand and $225 thousand on federal income tax credits for the three months ended December 31, 2022 and 2021, respectively.

5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

______________________________

1 Includes tax effect of $6.3 million and $5.6 million on tax-exempt municipal loan and lease income for the nine months ended December 31, 2022 and 2021, respectively.

2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.

3 Includes tax effect of $14.5 million and $12.2 million on tax-exempt debt securities income for the nine months ended December 31, 2022 and 2021, respectively.

4 Includes tax effect of $901 thousand and $990 thousand on federal income tax credits for the nine months ended December 31, 2022 and 2021, respectively.

5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.