July 20, 2023

2nd Quarter 2023 Highlights:

•Net income was $55.0 million for the current quarter, a decrease of $6.2 million, or 10 percent, from the prior quarter net income of $61.2 million. Net income for the current quarter decreased $21.4 million, or 28 percent, from the prior year second quarter net income of $76.4 million.

•Interest income of $247 million in the current quarter increased $15.5 million, or 7 percent, over the prior quarter interest income of $232 million. Interest income in the current quarter increased $47.7 million, or 24 percent, over the prior year second quarter.

•Total deposits and retail repurchase agreements of $21.365 billion at the current quarter end increased $25.5 million, or 12 basis points, during the current quarter.

•The loan portfolio of $15.955 billion, increased $436 million, or 11 percent annualized, during the current quarter.

•The loan yield for the current quarter of 5.12 percent, increased 10 basis points, compared to 5.02 percent in the prior quarter and increased 60 basis points from the prior year second quarter loan yield of 4.52 percent.

•Non-performing assets as a percentage of subsidiary assets was 0.12 percent in the current and prior quarter, compared to 0.16 percent in the prior year second quarter.

•The Company declared a quarterly dividend of $0.33 per share. The Company has declared 153 consecutive quarterly dividends and has increased the dividend 49 times.

First Half 2023 Highlights

•Net Income for the first half of 2023 was $116 million, a decrease of $28.0 million, or 19 percent, from the $144 million net income for the first half of the prior year.

•Interest income for the first six months of 2023 was $479 million, an increase of $89.1 million, or 23 percent over the first half of the prior year interest income of $390 million.

•The loan portfolio of $15.955 billion, increased $708 million, or 9 percent annualized, during the first half of the current year. The loan portfolio, excluding the Paycheck Protection Program (“PPP”) loans, increased $1.121 billion, or 17 percent annualized, during the first half of the prior year.

•The loan yield was 5.07 percent for the first half of the current year, an increase of 51 basis points from the first half of the prior year loan yield of 4.56 percent.

•Stockholders’ equity of $2.927 billion increased $83.2 million, or 3 percent, during the first six months of the current year.

•Dividends declared in the first half of 2023 were $0.66 per share.

Financial Summary

			At or for the Three Months ended																		At or for the Six Months ended
(Dollars in thousands, except per share and market data)			Jun 30, 2023						Mar 31, 2023						Jun 30, 2022																		Jun 30, 2023						Jun 30, 2022
Operating results
Net income			$	54,955					61,211						76,392																		116,166						144,187
Basic earnings per share			$	0.50					0.55						0.69																		1.05						1.30
Diluted earnings per share			$	0.50					0.55						0.69																		1.05						1.30
Dividends declared per share			$	0.33					0.33						0.33																		0.66						0.66
Market value per share
Closing			$	31.17					42.01						47.42																		31.17						47.42
High			$	42.21					50.03						51.40																		50.03						60.69
Low			$	26.77					37.07						44.43																		26.77						44.43
Selected ratios and other data
Number of common stock shares outstanding			110,873,887						110,868,713						110,766,287																		110,873,887						110,766,287
Average outstanding shares - basic			110,870,964						110,824,648						110,765,379																		110,847,806						110,745,017
Average outstanding shares - diluted			110,875,535						110,881,708						110,794,982																		110,879,654						110,799,368
Return on average assets (annualized)			0.81		%				0.93		%				1.16		%																0.87		%				1.11		%
Return on average equity (annualized)			7.52		%				8.54		%				10.55		%																8.03		%				9.76		%
Efficiency ratio			62.73		%				60.39		%				55.74		%																61.52		%				56.42		%
Dividend payout			66.00		%				60.00		%				47.83		%																62.86		%				50.77		%
Loan to deposit ratio			79.92		%				77.09		%				66.26		%																79.92		%				66.26		%
Number of full time equivalent employees			3,369						3,390						3,439																		3,369						3,439
Number of locations			222						222						224																		222						224
Number of ATMs			274						263						274																		274						274

KALISPELL, Mont., Jul 20, 2023 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $55.0 million for the current quarter, a decrease of $21.4 million, or 28 percent, from the $76.4 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.50 per share, a decrease of 28 percent from the prior year second quarter diluted earnings per share of $0.69. The decrease in net income compared to the prior quarter and prior year second quarter is primarily due to the continued increase in funding costs. “The growth in total deposits and repurchase agreements this quarter underscores the effectiveness of our team in successfully meeting the needs of local deposit relationships in this highly competitive environment,” said Randy Chesler, President and Chief Executive Officer. “Our deep local relationships, strong capital position and consistent financial performance helped set the stage for this growth.”

Net income for the six months ended June 30, 2023 was $116 million, a decrease of $28.0 million, or 19 percent, from the $144 million for the first six months in the prior year. Diluted earnings per share for the first half of 2023 was $1.05 per share, a decrease of 19 percent from the prior year first half diluted earnings per share of $1.30.

Asset Summary

																											$ Change from
(Dollars in thousands)			Jun 30, 2023						Mar 31, 2023						Dec 31, 2022						Jun 30, 2022						Mar 31, 2023						Dec 31, 2022						Jun 30, 2022
Cash and cash equivalents			$	1,051,320					1,529,534						401,995						415,406						(478,214)						649,325						635,914
Debt securities, available-for-sale			4,999,820						5,198,313						5,307,307						6,209,199						(198,493)						(307,487)						(1,209,379)
Debt securities, held-to-maturity			3,608,289						3,664,393						3,715,052						3,788,486						(56,104)						(106,763)						(180,197)
Total debt securities			8,608,109						8,862,706						9,022,359						9,997,685						(254,597)						(414,250)						(1,389,576)
Loans receivable
Residential real estate			1,588,175						1,508,403						1,446,008						1,261,119						79,772						142,167						327,056
Commercial real estate			10,220,751						9,992,019						9,797,047						9,310,070						228,732						423,704						910,681
Other commercial			2,888,810						2,804,104						2,799,668						2,685,392						84,706						89,142						203,418
Home equity			862,240						829,844						822,232						773,582						32,396						40,008						88,658
Other consumer			394,986						384,242						381,857						369,592						10,744						13,129						25,394
Loans receivable			15,954,962						15,518,612						15,246,812						14,399,755						436,350						708,150						1,555,207
Allowance for credit losses			(189,385)						(186,604)						(182,283)						(172,963)						(2,781)						(7,102)						(16,422)
Loans receivable, net			15,765,577						15,332,008						15,064,529						14,226,792						433,569						701,048						1,538,785
Other assets			2,102,673						2,078,186						2,146,492						2,050,122						24,487						(43,819)						52,551
Total assets			$	27,527,679					27,802,434						26,635,375						26,690,005						(274,755)						892,304						837,674

Total debt securities of $8.608 billion at June 30, 2023 decreased $255 million, or 3 percent, during the current quarter and decreased $1.390 billion, or 14 percent, from the prior year second quarter. The Company continues to utilize cash flow from the securities portfolio to primarily fund loan growth. Debt securities represented 31 percent of total assets at June 30, 2023, compared to 34 percent at December 31, 2022, and 37 percent at June 30, 2022.

The loan portfolio of $15.955 billion increased $436 million, or 11 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $229 million, or 9 percent annualized. The loan portfolio increased $1.555 billion, or 11 percent, from the prior year second quarter with the largest dollar increase in commercial real estate loans which increased $911 million, or 10 percent.

Credit Quality Summary

			At or for the Six Months ended						At or for the Three Months ended						At or for the Year ended						At or for the Six Months ended
(Dollars in thousands)			Jun 30, 2023						Mar 31, 2023						Dec 31, 2022						Jun 30, 2022
Allowance for credit losses
Balance at beginning of period			$	182,283					182,283						172,665						172,665
Provision for credit losses			11,514						6,260						17,433						2,991
Charge-offs			(7,083)						(3,293)						(14,970)						(7,040)
Recoveries			2,671						1,354						7,155						4,347
Balance at end of period			$	189,385					186,604						182,283						172,963
Provision for credit losses
Loan portfolio			$	11,514					6,260						17,433						2,991
Unfunded loan commitments			(3,271)						(790)						2,530						2,507
Total provision for credit losses			$	8,243					5,470						19,963						5,498
Other real estate owned			$	—					—						—						—
Other foreclosed assets			52						31						32						379
Accruing loans 90 days or more past due			3,876						3,545						1,559						5,064
Non-accrual loans			28,094						28,403						31,151						38,523
Total non-performing assets			$	32,022					31,979						32,742						43,966
Non-performing assets as a percentage of subsidiary assets			0.12		%				0.12		%				0.12		%				0.16		%
Allowance for credit losses as a percentage of non-performing loans			592		%				584		%				557		%				393		%
Allowance for credit losses as a percentage of total loans			1.19		%				1.20		%				1.20		%				1.20		%
Net charge-offs as a percentage of total loans			0.03		%				0.01		%				0.05		%				0.02		%
Accruing loans 30-89 days past due			$	24,863					24,993						20,967						16,588
U.S. government guarantees included in non-performing assets			$	1,035					2,071						2,312						5,888

Non-performing assets of $32.0 million at June 30, 2023 decreased $11.9 million, or 27 percent, over the prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2023 and March 31, 2023 was 0.12 percent compared to 0.16 percent in the prior year second quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $24.9 million at June 30, 2023 increased $8.3 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2023 and March 31, 2023 was 0.16 percent, which compared to 0.12 percent from prior year second quarter.

The current quarter credit loss expense of $2.8 million included $5.3 million of credit loss expense from loans and $2.5 million of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at June 30, 2023 was 1.19 percent, compared to 1.20 percent in the prior quarter and the prior year second quarter.

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

(Dollars in thousands)			Provision for Credit Losses Loans						Net Charge-Offs (Recoveries)						ACL as a Percent of Loans						Accruing Loans 30-89 Days Past Due as a Percent of Loans						Non-Performing Assets to Total Subsidiary Assets
Second quarter 2023			$	5,254					$	2,473					1.19		%				0.16		%				0.12		%
First quarter 2023			6,260						1,939						1.20		%				0.16		%				0.12		%
Fourth quarter 2022			6,060						1,968						1.20		%				0.14		%				0.12		%
Third quarter 2022			8,382						3,154						1.20		%				0.07		%				0.13		%
Second quarter 2022			(1,353)						1,843						1.20		%				0.12		%				0.16		%
First quarter 2022			4,344						850						1.28		%				0.12		%				0.24		%
Fourth quarter 2021			19,301						616						1.29		%				0.38		%				0.26		%
Third quarter 2021			2,313						152						1.36		%				0.23		%				0.24		%

Net charge-offs for the current quarter were $2.5 million compared to $2.0 million in the prior quarter and $1.8 million for the prior year second quarter. Net charge-offs of $2.5 million included $1.7 million in deposit overdraft net charge-offs and $773 thousand of net loan charge-offs.

The current quarter provision for credit loss expense for loans was $5.3 million which was a decrease of $1.0 million from the prior quarter and a $6.6 million increase from the prior year second 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)			Jun 30, 2023						Mar 31, 2023						Dec 31, 2022						Jun 30, 2022						Mar 31, 2023						Dec 31, 2022						Jun 30, 2022
Deposits
Non-interest bearing deposits			$	6,458,394					7,001,241						7,690,751						8,061,304						(542,847)						(1,232,357)						(1,602,910)
NOW and DDA accounts			5,154,442						5,156,709						5,330,614						5,432,333						(2,267)						(176,172)						(277,891)
Savings accounts			2,808,571						2,985,351						3,200,321						3,296,561						(176,780)						(391,750)						(487,990)
Money market deposit accounts			3,094,302						3,429,123						3,472,281						4,021,102						(334,821)						(377,979)						(926,800)
Certificate accounts			2,014,104						1,155,494						880,589						968,382						858,610						1,133,515						1,045,722
Core deposits, total			19,529,813						19,727,918						20,574,556						21,779,682						(198,105)						(1,044,743)						(2,249,869)
Wholesale deposits			478,417						420,390						31,999						4,001						58,027						446,418						474,416
Deposits, total			20,008,230						20,148,308						20,606,555						21,783,683						(140,078)						(598,325)						(1,775,453)
Repurchase agreements			1,356,862						1,191,323						945,916						968,197						165,539						410,946						388,665
Deposits and repurchase agreements, total			21,365,092						21,339,631						21,552,471						22,751,880						25,461						(187,379)						(1,386,788)
Federal Home Loan Bank advances			—						335,000						1,800,000						580,000						(335,000)						(1,800,000)						(580,000)
FRB Bank Term Funding			2,740,000						2,740,000						—						—						—						2,740,000						2,740,000
Other borrowed funds			75,819						76,185						77,293						66,200						(366)						(1,474)						9,619
Subordinated debentures			132,863						132,822						132,782						132,701						41						81						162
Other liabilities			287,379						251,892						229,524						262,985						35,487						57,855						24,394
Total liabilities			$	24,601,153					24,875,530						23,792,070						23,793,766						(274,377)						809,083						807,387

During the current quarter, the Company continued to focus on its diversified deposit and repurchase agreement product offerings. Total deposits and retail repurchase agreements of $21.365 billion at the current quarter end increased $25.5 million, or 12 basis points, during the current quarter. Non-interest bearing deposits were 33 percent of total core deposits at June 30, 2023 compared to 37 percent at December 31, 2022 and June 30, 2022.

During the current quarter, the Company fully paid off its higher rate Federal Home Loan Bank (“FHLB”) advances. The Company’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. The Company has available liquidity of $15.1 billion including cash, borrowing capacity from the FHLB and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.

Stockholders’ Equity Summary

																											$ Change from
(Dollars in thousands, except per share data)			Jun 30, 2023						Mar 31, 2023						Dec 31, 2022						Jun 30, 2022						Mar 31, 2023						Dec 31, 2022						Jun 30, 2022
Common equity			$	3,357,313					3,337,132						3,312,097						3,223,451						20,181						45,216						133,862
Accumulated other comprehensive loss			(430,787)						(410,228)						(468,792)						(327,212)						(20,559)						38,005						(103,575)
Total stockholders’ equity			2,926,526						2,926,904						2,843,305						2,896,239						(378)						83,221						30,287
Goodwill and core deposit intangible, net			(1,022,118)						(1,024,545)						(1,026,994)						(1,032,323)						2,427						4,876						10,205
Tangible stockholders’ equity			$	1,904,408					1,902,359						1,816,311						1,863,916						2,049						88,097						40,492

Stockholders’ equity to total assets			10.63		%				10.53		%				10.67		%				10.85		%
Tangible stockholders’ equity to total tangible assets			7.18		%				7.10		%				7.09		%				7.26		%
Book value per common share			$	26.40					26.40						25.67						26.15						—						0.73						0.25
Tangible book value per common share			$	17.18					17.16						16.40						16.83						0.02						0.78						0.35

Tangible stockholders’ equity was $1.904 billion at June 30, 2023 increased $2.0 million, or 1 basis point, compared to the prior quarter and increased $88.0 million, or 5 percent, from the prior year end, which was primarily due to earnings retention and the decrease in the net unrealized loss (after-tax) on the AFS debt securities. Tangible book value per common share of $17.18 at the current quarter end increased $0.78 per share, or 5 percent, from the prior year end. The tangible book value per common share increased $0.35 per share from the prior year second quarter.

Cash Dividends

On June 28, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The current quarter dividend of $0.33 per share was consistent with the dividend declared in the prior quarter and the prior year second quarter. The dividend was payable July 20, 2023 to shareholders of record on July 11, 2023. The dividend was the Company’s 153rd 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																					$ Change from
(Dollars in thousands)			Jun 30, 2023						Mar 31, 2023						Jun 30, 2022																		Mar 31, 2023						Jun 30, 2022
Net interest income
Interest income			$	247,365					231,888						199,637																		15,477						47,728
Interest expense			75,385						45,696						6,199																		29,689						69,186
Total net interest income			171,980						186,192						193,438																		(14,212)						(21,458)
Non-interest income
Service charges and other fees			18,967						17,771						17,309																		1,196						1,658
Miscellaneous loan fees and charges			4,162						3,967						3,850																		195						312
Gain on sale of loans			3,528						2,400						4,996																		1,128						(1,468)
Loss on sale of debt securities			(23)						(114)						(260)																		91						237
Other income			2,445						3,871						2,385																		(1,426)						60
Total non-interest income			29,079						27,895						28,280																		1,184						799
Total income			201,059						214,087						221,718																		(13,028)						(20,659)
Net interest margin (tax-equivalent)			2.74		%				3.08		%				3.23		%

The current quarter interest income of $247 million increased $15.5 million, or 7 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 $47.7 million, or 24 percent, over the prior year second quarter also due to loan growth and increased loan yields. The loan yield of 5.12 percent in the current quarter increased 10 basis points from the prior quarter loan yield of 5.02 percent and increased 60 basis points from the prior year second quarter loan yield of 4.52 percent.

The current quarter interest expense of $75.4 million increased $29.7 million, or 65 percent, over the prior quarter and increased $69.2 million, or 1,116 percent, over the prior year second quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 0.57 percent for the current quarter compared to 0.23 percent in the prior quarter and 0.06 percent for the prior year second quarter. The total cost of funding (including non-interest bearing deposits) was 1.26 percent in the current quarter compared to 0.79 percent in the prior quarter and 0.11 percent in the prior year second quarter which was the result of the increased deposit and borrowing rates.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.74 percent compared to 3.08 percent in the prior quarter and 3.23 percent in the prior year second quarter. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.72 percent compared to 3.07 percent in the prior quarter and 3.16 percent in the prior year second quarter. The core net interest margin decreased 35 basis points in the current quarter primarily as a result of increased deposit and borrowing rates.

Non-interest income for the current quarter totaled $29.1 million which was an increase of $1.2 million, or 4 percent, over the prior quarter which was primarily driven by an increase in service charges and gain on the sale of residential loans. Gain on the sale of residential loans of $3.5 million for the current quarter increased $1.1 million, or 47 percent, compared to the prior quarter and decreased $1.5 million, or 29 percent, from the prior year second quarter.

Service charges and other fees of $19.0 million in the current quarter increased $1.2 million, or 7 percent, over the prior quarter and increased $1.7 million, or 10 percent, over the prior year second quarter.

Non-interest Expense Summary

			Three Months ended																		$ Change from
(Dollars in thousands)			Jun 30, 2023						Mar 31, 2023						Jun 30, 2022																		Mar 31, 2023						Jun 30, 2022
Compensation and employee benefits			$	78,764					81,477						79,803																		(2,713)						(1,039)
Occupancy and equipment			10,827						11,665						10,766																		(838)						61
Advertising and promotions			3,733						4,235						3,766																		(502)						(33)
Data processing			8,402						8,109						7,553																		293						849
Other real estate owned and foreclosed assets			14						12						6																		2						8
Regulatory assessments and insurance			5,314						4,903						3,085																		411						2,229
Core deposit intangibles amortization			2,427						2,449						2,665																		(22)						(238)
Other expenses			21,123						22,132						21,877																		(1,009)						(754)
Total non-interest expense			$	130,604					134,982						129,521																		(4,378)						1,083

Total non-interest expense of $131 million for the current quarter decreased $4.4 million, or 3 percent, over the prior quarter and increased $1.1 million, or 1 percent, over the prior year second quarter. Compensation and employee benefits expense of $78.8 million for the current quarter decreased $2.7 million, or 3 percent, from the prior quarter and decreased $1.0 million, or 1 percent, over the prior year second quarter which was driven primarily by decreases in accrued expenses for employee benefits. Regulatory assessments and insurance of $5.3 million, increased $2.2 million, or 72 percent, over the prior year second quarter and was primarily due to the FDIC uniformly increasing all depository institutions premiums beginning in the prior quarter. “The current quarter reduction in non-interest expense is primarily due to reductions in compensation and related benefits as the Company continues to closely monitor staffing levels and improve operating efficiencies,” said Ron Copher, Chief Financial Officer.

Tax expense during the second quarter of 2023 was $12.7 million, a decrease of $303 thousand, or 2 percent, compared to the prior quarter and a decrease of $4.6 million, or 27 percent, from the prior year second quarter. The effective tax rate in the current quarter was 18.8 percent compared to 16.9 percent in the prior quarter and 18.5 percent in the prior year second quarter.

The efficiency ratio was 62.73 percent in the current quarter compared to 60.39 percent in the prior quarter and 55.74 percent in the prior year second quarter. The increase the from prior quarter and prior year second quarter was primarily attributable to the increase in interest expense in the current quarter.

Income Summary

			Six Months ended
(Dollars in thousands)			Jun 30, 2023						Jun 30, 2022						$ Change						% Change
Net interest income
Interest income			$	479,253					$	390,153					$	89,100					23		%
Interest expense			121,081						11,160						109,921						985		%
Total net interest income			358,172						378,993						(20,821)						(5)		%
Non-interest income
Service charges and other fees			36,738						34,420						2,318						7		%
Miscellaneous loan fees and charges			8,129						7,405						724						10		%
Gain on sale of loans			5,928						14,011						(8,083)						(58)		%
(Loss) gain on sale of debt securities			(137)						186						(323)						(174)		%
Other income			6,316						5,821						495						9		%
Total non-interest income			56,974						61,843						(4,869)						(8)		%
Total Income			$	415,146					$	440,836					$	(25,690)					(6)		%
Net interest margin (tax-equivalent)			2.91		%				3.21		%

Net-interest income of $358 million for the first half of 2023 decreased $20.8 million, or 5 percent, over the same period of 2022 and was primarily driven by increased interest expense. Interest income of $479 million for the first six months in the current year increased $89.1 million, or 23 percent, from the same period in the prior year and was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The loan yield was 5.07 percent for the first half of the current year, an increase of 51 basis points from the first half of the prior year loan yield of 4.56 percent.

Interest expense of $121.1 million for the first half of 2023 increased $110 million, or 985 percent, over the same period in the prior year and was the result of increased borrowings and higher interest rates on borrowings and deposits. Core deposit cost (including non-interest bearing deposits) was 0.40 percent for the first half of 2023 compared to 0.06 percent for the same period in 2022. The total funding cost (including non-interest bearing deposits) for the first six months of the current year was 1.03 percent, which was an increase of 93 basis points over the prior year first half of 0.10 percent.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2023 was 2.91 percent, a 30 basis points decrease from the net interest margin of 3.21 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 2.90 percent, which was a 21 basis points decrease from the core margin of 3.11 percent in the prior year.

Non-interest income of $57.0 million for the first half of 2023 decreased $4.9 million, or 8 percent, over the same period last year and was principally due to the decrease in gain on sale of residential loans which was partially offset by the increase in service charges and other fees.

Non-interest Expense Summary

Total non-interest expense of $266 million for the first six months of 2023 increased $5.8 million, or 2 percent, over the same period in the prior year. Regulatory assessments and insurance of $10.2 million for the first half of 2023 increased $4.1 million, or 66 percent, over the prior year and was primarily due to the FDIC uniformly increasing all depository institutions premiums beginning in 2023. Other expense of $43.3 million for the first half of 2023 decreased $2.5 million, or 5 percent, from the first half of the prior year and was primarily due to the decrease in acquisition-related expenses along with changes in several miscellaneous categories. Acquisition-related expenses were $563 thousand in the first half of the current year compared to $8.3 million in the same period of last year.

Provision for Credit Losses

The provision for credit loss expense was $8.2 million for the first half of 2023 increased $2.7 million, or 50 percent, over the same period of the prior year. The provision for credit loss expense for the first half of 2023 included provision for credit loss expense of $11.5 million on the loan portfolio and credit loss benefit of $3.3 million on the unfunded loan commitments. Net charge-offs during the first half of the current year were $4.4 million compared to $2.7 million during the same period of the prior year.

Tax expense of $25.2 million for the first half of 2023 decreased $6.2 million, or 20 percent, over the first six months of the prior year. The effective tax rate for first half of 2023 was 17.8 percent compared to 17.8 percent for the first half of 2022.

The efficiency ratio was 61.52 percent for the first six months of 2023 compared to 56.42 percent for the same period last year. The increase from the prior year was primarily attributable to the increase in interest expense in the current year.

Forward-Looking Statements

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

•risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;

•changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;

•legislative or regulatory changes, including increased banking and consumer protection regulations, that may adversely affect the Company’s business;

•risks related to overall economic conditions, including the impact on the economy of a rising interest rate environment, inflationary pressures, and geopolitical instability, including the war in Ukraine;

•risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;

•costs or difficulties related to the completion and integration of acquisitions;

•impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;

•reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;

•deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company's ability to obtain and maintain customers;

•changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;

•risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;

•risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;

•material failure, potential interruption or breach in security of the Company’s systems or changes in technological which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;

•risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;

•success in managing risks involved in the foregoing; and

•effects of any reputational damage to the Company resulting from any of the foregoing.

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

Conference Call Information

A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, July 21, 2023. Please note that our conference call host no longer offers a general dial-in number. 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/BI19db5b01086643a5bde0e9f301e797ea. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/6gianovu. 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).

______________________________

1 Includes tax effect of $1.3 million and $1.8 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2023 and March 31, 2023, 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 $1.8 million and $3.3 million on tax-exempt debt securities income for the three months ended June 30, 2023 and March 31, 2023, respectively.

4 Includes tax effect of $214 thousand and $215 thousand on federal income tax credits for the three months ended June 30, 2023 and March 31, 2023, respectively.

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

			Three Months ended
			June 30, 2023																		June 30, 2022
(Dollars in thousands)			Average Balance						Interest & Dividends						Average Yield/ Rate						Average Balance						Interest & Dividends						Average Yield/ Rate
Assets
Residential real estate loans			$	1,567,136					$	17,076					4.36		%				$	1,229,013					$	13,026					4.24		%
Commercial loans 1			12,950,934						165,874						5.14		%				11,712,381						132,799						4.55		%
Consumer and other loans			1,236,763						18,044						5.85		%				1,107,396						12,511						4.53		%
Total loans 2			15,754,833						200,994						5.12		%				14,048,790						158,336						4.52		%
Tax-exempt debt securities 3			1,743,852						14,462						3.32		%				1,979,865						18,413						3.72		%
Taxable debt securities 4			8,177,551						35,202						1.72		%				8,685,641						28,473						1.31		%
Total earning assets			25,676,236						250,658						3.92		%				24,714,296						205,222						3.33		%
Goodwill and intangibles			1,023,291																		1,033,601
Non-earning assets			523,349																		619,671
Total assets			$	27,222,876																	$	26,367,568
Liabilities
Non-interest bearing deposits			$	6,584,082					$	—					—		%				$	7,991,993					$	—					—		%
NOW and DDA accounts			5,108,421						7,429						0.58		%				5,405,470						723						0.05		%
Savings accounts			2,846,015						1,064						0.15		%				3,261,798						244						0.03		%
Money market deposit accounts			3,256,007						10,174						1.25		%				3,999,582						1,369						0.14		%
Certificate accounts			1,451,218						8,878						2.45		%				982,397						797						0.33		%
Total core deposits			19,245,743						27,545						0.57		%				21,641,240						3,133						0.06		%
Wholesale deposits 5			330,655						4,155						5.04		%				3,877						8						0.71		%
Repurchase agreements			1,273,045						8,607						2.71		%				923,459						367						0.16		%
FHLB advances			245,055						3,305						5.33		%				476,978						1,298						1.08		%
FRB Bank Term Funding			2,740,000						29,899						4.38		%				—						—						—		%
Subordinated debentures and other borrowed funds			208,804						1,874						3.60		%				190,072						1,393						2.94		%
Total funding liabilities			24,043,302						75,385						1.26		%				23,235,626						6,199						0.11		%
Other liabilities			247,319																		235,814
Total liabilities			24,290,621																		23,471,440
Stockholders’ Equity
Common stock			1,108																		1,108
Paid-in capital			2,345,438																		2,340,059
Retained earnings			1,017,456																		875,276
Accumulated other comprehensive loss			(431,747)																		(320,315)
Total stockholders’ equity			2,932,255																		2,896,128
Total liabilities and stockholders’ equity			$	27,222,876																	$	26,367,568
Net interest income (tax-equivalent)									$	175,273																	$	199,023
Net interest spread (tax-equivalent)															2.66		%																3.22		%
Net interest margin (tax-equivalent)															2.74		%																3.23		%

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1 Includes tax effect of $1.3 million and $1.5 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2023 and 2022, respectively.

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

3 Includes tax effect of $1.8 million and $3.8 million on tax-exempt debt securities income for the three months ended June 30, 2023 and 2022, respectively.

4 Includes tax effect of $214 thousand and $226 thousand on federal income tax credits for the three months ended June 30, 2023 and 2022, 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 $3.1 million and $2.9 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2023 and 2022, respectively.

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

3 Includes tax effect of $5.0 million and $7.1 million on tax-exempt debt securities income for the six months ended June 30, 2023 and 2022, respectively.

4 Includes tax effect of $429 thousand and $451 thousand on federal income tax credits for the six months ended June 30, 2023 and 2022, respectively.

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