October 19, 2023

3rd Quarter 2023 Highlights:

•Net income was $52.4 million for the current quarter, a decrease of $2.6 million, or 5 percent, from the prior quarter net income of $55.0 million. Net income for the current quarter decreased $26.9 million, or 34 percent, from the prior year third quarter net income of $79.3 million.

•Interest income of $265 million in the current quarter increased $17.5 million, or 7 percent, over the prior quarter interest income of $247 million. Interest income in the current quarter increased $50.5 million, or 24 percent, over the prior year third quarter.

•Total deposits and retail repurchase agreements of $21.895 billion at the current quarter end increased $530 million, or 10 percent annualized, during the current quarter.

•Non-interest bearing deposits remained stable in the current quarter with a $7.0 million increase over the prior quarter.

•The loan portfolio of $16.135 billion increased $180 million, or 5 percent annualized, during the current quarter.

•The loan yield for the current quarter of 5.27 percent, increased 15 basis points, compared to 5.12 percent in the prior quarter and increased 60 basis points from the prior year third quarter loan yield of 4.67 percent.

•Early stage delinquencies (accruing loans 30-89 days past due) of $15.3 million at September 30, 2023 decreased $9.6 million from the prior quarter.

•The Company declared a quarterly dividend of $0.33 per share. The Company has declared 154 consecutive quarterly dividends and has increased the dividend 49 times.

•The Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank, a leading eastern Washington community bank headquartered in Spokane with total assets of $763 million as of September 30, 2023. This will be the Company’s 25th acquisition since 2000.

Year-to-date 2023 Highlights

•Net Income for the first nine months of 2023 was $169 million, a decrease of $54.9 million, or 25 percent, from the $224 million for the prior year first nine months net income.

•Interest income for the first nine months of 2023 was $744 million, an increase of $139 million, or 23 percent over the first nine months of the prior year interest income of $605 million.

•Total core deposits and retail repurchase agreements of $21.827 billion at the current quarter end increased $307 million, or 1 percent, during the first nine months of 2023.

•The loan portfolio of $16.135 billion increased $888 million, or 8 percent annualized, during the first nine months of the current year. The loan portfolio, excluding the Paycheck Protection Program (“PPP”) loans, increased $1.578 billion, or 16 percent annualized, during the first nine months of the prior year.

•The loan yield was 5.14 percent for the first nine months of the current year, an increase of 54 basis points from the first nine months of the prior year loan yield of 4.60 percent.

•Stockholders’ equity of $2.875 billion increased $31.3 million, or 1 percent, during the first nine months of the current year.

•Dividends declared in the first nine months of 2023 were $0.99 per share.

Financial Summary

			At or for the Three Months ended																								At or for the Nine Months ended
(Dollars in thousands, except per share and market data)			Sep 30, 2023						Jun 30, 2023						Mar 31, 2023						Sep 30, 2022												Sep 30, 2023						Sep 30, 2022
Operating results
Net income			$	52,445					54,955						61,211						79,338												168,611						223,525
Basic earnings per share			$	0.47					0.50						0.55						0.72												1.52						2.02
Diluted earnings per share			$	0.47					0.50						0.55						0.72												1.52						2.02
Dividends declared per share			$	0.33					0.33						0.33						0.33												0.99						0.99
Market value per share
Closing			$	28.50					31.17						42.01						49.13												28.50						49.13
High			$	36.45					42.21						50.03						56.10												50.03						60.69
Low			$	26.84					26.77						37.07						46.08												26.77						44.43
Selected ratios and other data
Number of common stock shares outstanding			110,879,365						110,873,887						110,868,713						110,766,954												110,879,365						110,766,954
Average outstanding shares - basic			110,877,534						110,870,964						110,824,648						110,766,502												110,857,788						110,752,231
Average outstanding shares - diluted			110,886,959						110,875,535						110,881,708						110,833,594												110,882,718						110,811,267
Return on average assets (annualized)			0.75		%				0.81		%				0.93		%				1.18		%										0.83		%				1.13		%
Return on average equity (annualized)			7.12		%				7.52		%				8.54		%				10.94		%										7.72		%				10.14		%
Efficiency ratio			63.31		%				62.73		%				60.39		%				52.76		%										62.10		%				55.14		%
Dividend payout			70.21		%				66.00		%				60.00		%				45.83		%										65.13		%				49.01		%
Loan to deposit ratio			79.25		%				79.92		%				77.09		%				67.98		%										79.25		%				67.98		%
Number of full time equivalent employees			3,314						3,369						3,390						3,396												3,314						3,396
Number of locations			221						222						222						222												221						222
Number of ATMs			274						274						263						272												274						272

KALISPELL, Mont., Oct 19, 2023 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $52.4 million for the current quarter, a decrease of $26.9 million, or 34 percent, from the $79.3 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.47 per share, a decrease of 35 percent from the prior year third quarter diluted earnings per share of $0.72. The decrease in net income compared to the prior quarter and prior year third quarter was primarily due to the continued increase in funding costs, which has outpaced the increase in interest income.

“Our strong core deposit growth in the quarter shows the strength of our business model and employees. We were able to significantly grow deposits this quarter by leveraging existing banking relationships across all of our divisions,” said Randy Chesler, President and Chief Executive Officer. “We were also pleased to see the increase in interest income for the quarter, reflecting higher yields on loans and investments.”

Net income for the nine months ended September 30, 2023 was $169 million, a decrease of $54.9 million, or 25 percent, from the $224 million for the first nine months in the prior year, which was primarily driven by the increase in funding costs outpacing the increase in interest income. Diluted earnings per share for the first nine months of 2023 was $1.52 per share, a decrease of 25 percent from the prior year first nine months diluted earnings per share of $2.02.

On August 8 2023, the Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, “Wheatland”), headquartered in Spokane, Washington. Wheatland has 14 branches in eastern Washington with total assets of $763 million, total loans of $491 million and total deposits of $609 million as of September 30, 2023. The acquisition is subject to required regulatory and shareholder approvals and other customary conditions of closing and is expected to be completed in the fourth quarter of 2023.

Asset Summary

																											$ Change from
(Dollars in thousands)			Sep 30, 2023						Jun 30, 2023						Dec 31, 2022						Sep 30, 2022						Jun 30, 2023						Dec 31, 2022						Sep 30, 2022
Cash and cash equivalents			$	1,672,094					1,051,320						401,995						425,212						620,774						1,270,099						1,246,882
Debt securities, available-for-sale			4,741,738						4,999,820						5,307,307						5,755,076						(258,082)						(565,569)						(1,013,338)
Debt securities, held-to-maturity			3,553,805						3,608,289						3,715,052						3,756,634						(54,484)						(161,247)						(202,829)
Total debt securities			8,295,543						8,608,109						9,022,359						9,511,710						(312,566)						(726,816)						(1,216,167)
Loans receivable
Residential real estate			1,653,777						1,588,175						1,446,008						1,368,368						65,602						207,769						285,409
Commercial real estate			10,292,446						10,220,751						9,797,047						9,582,989						71,695						495,399						709,457
Other commercial			2,916,785						2,888,810						2,799,668						2,729,717						27,975						117,117						187,068
Home equity			869,963						862,240						822,232						793,556						7,723						47,731						76,407
Other consumer			402,075						394,986						381,857						376,603						7,089						20,218						25,472
Loans receivable			16,135,046						15,954,962						15,246,812						14,851,233						180,084						888,234						1,283,813
Allowance for credit losses			(192,271)						(189,385)						(182,283)						(178,191)						(2,886)						(9,988)						(14,080)
Loans receivable, net			15,942,775						15,765,577						15,064,529						14,673,042						177,198						878,246						1,269,733
Other assets			2,153,149						2,102,673						2,146,492						2,122,990						50,476						6,657						30,159
Total assets			$	28,063,561					27,527,679						26,635,375						26,732,954						535,882						1,428,186						1,330,607

Total debt securities of $8.296 billion at September 30, 2023 decreased $313 million, or 4 percent, during the current quarter and decreased $1.216 billion, or 13 percent, from the prior year third quarter. The Company continues to utilize cash flow from the securities portfolio to primarily fund loan growth and maintain a strong cash position. The Company increased its cash position by $621 million during the current quarter to further strengthen its liquidity position. Debt securities represented 30 percent of total assets at September 30, 2023, compared to 34 percent at December 31, 2022, and 36 percent at September 30, 2022.

The loan portfolio of $16.135 billion increased $180 million, or 5 percent annualized, during the current quarter with the largest dollar increase in commercial real estate, which increased $71.7 million, or 3 percent annualized.

The loan portfolio increased $1.284 billion, or 9 percent, from the prior year third quarter with the largest dollar increase in commercial real estate loans, which increased $709 million, or 7 percent.

Credit Quality Summary

			At or for the Nine Months ended						At or for the Six Months ended						At or for the Year ended						At or for the Nine Months ended
(Dollars in thousands)			Sep 30, 2023						Jun 30, 2023						Dec 31, 2022						Sep 30, 2022
Allowance for credit losses
Balance at beginning of period			$	182,283					182,283						172,665						172,665
Provision for credit losses			16,609						11,514						17,433						11,373
Charge-offs			(10,284)						(7,083)						(14,970)						(10,905)
Recoveries			3,663						2,671						7,155						5,058
Balance at end of period			$	192,271					189,385						182,283						178,191
Provision for credit losses
Loan portfolio			$	16,609					11,514						17,433						11,373
Unfunded loan commitments			(4,827)						(3,271)						2,530						2,466
Total provision for credit losses			$	11,782					8,243						19,963						13,839
Other real estate owned			$	—					—						—						—
Other foreclosed assets			48						52						32						42
Accruing loans 90 days or more past due			3,855						3,876						1,559						2,524
Non-accrual loans			38,380						28,094						31,151						32,493
Total non-performing assets			$	42,283					32,022						32,742						35,059
Non-performing assets as a percentage of subsidiary assets			0.15		%				0.12		%				0.12		%				0.13		%
Allowance for credit losses as a percentage of non-performing loans			455		%				592		%				557		%				508		%
Allowance for credit losses as a percentage of total loans			1.19		%				1.19		%				1.20		%				1.20		%
Net charge-offs as a percentage of total loans			0.04		%				0.03		%				0.05		%				0.04		%
Accruing loans 30-89 days past due			$	15,253					24,863						20,967						10,922
U.S. government guarantees included in non-performing assets			$	1,057					1,035						2,312						4,930

Non-performing assets of $42.3 million at September 30, 2023 increased $10.3 million, or 32 percent, over the quarter and increased $7.2 million, or 21 percent, over the prior year third quarter. Non-performing assets as a percentage of subsidiary assets at September 30, 2023 was 0.15 percent compared to 0.12 percent in the prior quarter and 0.13 percent in the prior year third quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $15.3 million at September 30, 2023 decreased $9.6 million from the prior quarter and decreased $5.7 million from prior year end. Early stage delinquencies as a percentage of loans at September 30, 2023 was 0.09 percent compared to 0.16 for the prior quarter end and 0.14 percent for the prior year end.

The current quarter credit loss expense of $3.5 million included $5.1 million of credit loss expense from loans and $1.6 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 September 30, 2023 was 1.19 percent compared to 1.20 percent in the prior year third 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
Third quarter 2023			$	5,095					$	2,209					1.19		%				0.09		%				0.15		%
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		%

Net charge-offs for the current quarter were $2.2 million compared to $2.5 million in the prior quarter and $3.2 million for the prior year third quarter. Net charge-offs of $2.2 million included $1.7 million in deposit overdraft net charge-offs and $544 thousand of net loan charge-offs.

The current quarter provision for credit loss expense for loans was $5.1 million, which was a decrease of $160 thousand from the prior quarter and a $3.3 million decrease from the prior year third 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)			Sep 30, 2023						Jun 30, 2023						Dec 31, 2022						Sep 30, 2022						Jun 30, 2023						Dec 31, 2022						Sep 30, 2022
Deposits
Non-interest bearing deposits			$	6,465,353					6,458,394						7,690,751						8,294,363						6,959						(1,225,398)						(1,829,010)
NOW and DDA accounts			5,253,367						5,154,442						5,330,614						5,462,707						98,925						(77,247)						(209,340)
Savings accounts			2,872,362						2,808,571						3,200,321						3,305,333						63,791						(327,959)						(432,971)
Money market deposit accounts			2,994,631						3,094,302						3,472,281						3,905,676						(99,671)						(477,650)						(911,045)
Certificate accounts			2,742,017						2,014,104						880,589						907,560						727,913						1,861,428						1,834,457
Core deposits, total			20,327,730						19,529,813						20,574,556						21,875,639						797,917						(246,826)						(1,547,909)
Wholesale deposits			67,434						478,417						31,999						4,003						(410,983)						35,435						63,431
Deposits, total			20,395,164						20,008,230						20,606,555						21,879,642						386,934						(211,391)						(1,484,478)
Repurchase agreements			1,499,696						1,356,862						945,916						887,483						142,834						553,780						612,213
Deposits and repurchase agreements, total			21,894,860						21,365,092						21,552,471						22,767,125						529,768						342,389						(872,265)
Federal Home Loan Bank advances			—						—						1,800,000						705,000						—						(1,800,000)						(705,000)
FRB Bank Term Funding			2,740,000						2,740,000						—						—						—						2,740,000						2,740,000
Other borrowed funds			73,752						75,819						77,293						77,671						(2,067)						(3,541)						(3,919)
Subordinated debentures			132,903						132,863						132,782						132,742						40						121						161
Other liabilities			347,452						287,379						229,524						278,059						60,073						117,928						69,393
Total liabilities			$	25,188,967					24,601,153						23,792,070						23,960,597						587,814						1,396,897						1,228,370

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 $21.895 billion at the current quarter end increased $530 million, or 10 percent annualized, during the current quarter. With the increased core deposits, the Company allowed $411 million of higher cost wholesale deposits to mature. Excluding wholesale deposits, core deposits and retail repurchase agreements increased $941 million, or 18 annualized percent, during the current quarter. Non-interest bearing deposits increased $7.0 million over the prior quarter, representing 32 percent of total core deposits at September 30, 2023 compared to 37 percent at December 31, 2022 and 38 percent at September 30, 2022.

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 $14.8 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)			Sep 30, 2023						Jun 30, 2023						Dec 31, 2022						Sep 30, 2022						Jun 30, 2023						Dec 31, 2022						Sep 30, 2022
Common equity			$	3,374,961					3,357,313						3,312,097						3,267,505						17,648						62,864						107,456
Accumulated other comprehensive loss			(500,367)						(430,787)						(468,792)						(495,148)						(69,580)						(31,575)						(5,219)
Total stockholders’ equity			2,874,594						2,926,526						2,843,305						2,772,357						(51,932)						31,289						102,237
Goodwill and core deposit intangible, net			(1,019,690)						(1,022,118)						(1,026,994)						(1,029,658)						2,428						7,304						9,968
Tangible stockholders’ equity			$	1,854,904					1,904,408						1,816,311						1,742,699						(49,504)						38,593						112,205

Stockholders’ equity to total assets			10.24		%				10.63		%				10.67		%				10.37		%
Tangible stockholders’ equity to total tangible assets			6.86		%				7.18		%				7.09		%				6.78		%
Book value per common share			$	25.93					26.40						25.67						25.03						(0.47)						0.26						0.90
Tangible book value per common share			$	16.73					17.18						16.40						15.73						(0.45)						0.33						1.00

Tangible stockholders’ equity of $1.855 billion at September 30, 2023 decreased $49.5 million, or 3 percent, compared to the prior quarter and was due to an increase in net unrealized losses (after-tax) on available-for-sale debt securities during the current quarter. Tangible stockholders’ equity increased $112 million, or 6 percent, from September 30, 2022, which was primarily due to earnings retention. Tangible book value per common share of $16.73 at the current quarter end increased $0.33 per share, or 2 percent, from the prior year end. The tangible book value per common share increased $1.00 per share from the prior year third quarter.

Cash Dividends

On September 27, 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 third quarter. The dividend was payable October 19, 2023 to shareholders of record on October 10, 2023. The dividend was the Company’s 154th 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)			Sep 30, 2023						Jun 30, 2023						Mar 31, 2023						Sep 30, 2022												Jun 30, 2023						Mar 31, 2023						Sep 30, 2022
Net interest income
Interest income			$	264,906					247,365						231,888						214,402												17,541						33,018						50,504
Interest expense			97,852						75,385						45,696						9,075												22,467						52,156						88,777
Total net interest income			167,054						171,980						186,192						205,327												(4,926)						(19,138)						(38,273)
Non-interest income
Service charges and other fees			19,304						18,967						17,771						18,970												337						1,533						334
Miscellaneous loan fees and charges			4,322						4,162						3,967						4,040												160						355						282
Gain on sale of loans			4,046						3,528						2,400						3,846												518						1,646						200
Loss on sale of debt securities			(65)						(23)						(114)						(85)												(42)						49						20
Other income			2,633						2,445						3,871						3,635												188						(1,238)						(1,002)
Total non-interest income			30,240						29,079						27,895						30,406												1,161						2,345						(166)
Total income			$	197,294					201,059						214,087						235,733												(3,765)						(16,793)						(38,439)
Net interest margin (tax-equivalent)			2.58		%				2.74		%				3.08		%				3.34		%

The current quarter interest income of $265 million increased $17.5 million, or 7 percent, over the prior quarter and was driven primarily by the increase in the loan yields and an increase in interest-bearing cash. The current quarter interest income increased $50.5 million, or 24 percent, over the prior year third quarter and was principally due to loan growth and increased loan yields. The loan yield of 5.27 percent in the current quarter increased 15 basis points from the prior quarter loan yield of 5.12 percent and increased 60 basis points from the prior year third quarter loan yield of 4.67 percent.

The current quarter interest expense of $97.9 million increased $22.5 million, or 30 percent, over the prior quarter and increased $88.8 million, or 978 percent, over the prior year third quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 1.03 percent for the current quarter compared to 0.57 percent in the prior quarter and 0.06 percent for the prior year third quarter. The total cost of funding (including non-interest bearing deposits) was 1.58 percent in the current quarter compared to 1.26 percent in the prior quarter and 0.15 percent in the prior year third 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 2.58 percent compared to 2.74 percent in the prior quarter and 3.34 percent in the prior year third quarter. Although the net interest margin has been negatively impacted by the increase in interest rates in the current year, the Company experienced a slower pace in the decline in the net interest margin during the current quarter. The current quarter decrease in net interest margin was 16 basis points compared to a decrease of 34 basis points in the prior quarter and a decrease of 22 basis points in the first quarter of the current year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.55 percent compared to 2.72 percent in the prior quarter and 3.29 percent in the prior year third quarter.

Non-interest income for the current quarter totaled $30.2 million, which was an increase of $1.2 million, or 4 percent, over the prior quarter. Gain on the sale of residential loans of $4.0 million for the current quarter increased $518 thousand, or 15 percent, compared to the prior quarter and increased $200 thousand, or 5 percent, from the prior year third quarter. Service charges and other fees of $19.3 million in the current quarter increased $337 thousand, or 2 percent, over the prior quarter and increased $334 thousand, or 2 percent, over the prior year third quarter.

Non-interest Expense Summary

			Three Months ended																								$ Change from
(Dollars in thousands)			Sep 30, 2023						Jun 30, 2023						Mar 31, 2023						Sep 30, 2022												Jun 30, 2023						Mar 31, 2023						Sep 30, 2022
Compensation and employee benefits			$	77,387					78,764						81,477						80,612												(1,377)						(4,090)						(3,225)
Occupancy and equipment			10,553						10,827						11,665						10,797												(274)						(1,112)						(244)
Advertising and promotions			4,052						3,733						4,235						3,768												319						(183)						284
Data processing			8,730						8,402						8,109						7,716												328						621						1,014
Other real estate owned and foreclosed assets			15						14						12						66												1						3						(51)
Regulatory assessments and insurance			6,060						5,314						4,903						3,339												746						1,157						2,721
Core deposit intangibles amortization			2,428						2,427						2,449						2,665												1						(21)						(237)
Other expenses			20,351						21,123						22,132						21,097												(772)						(1,781)						(746)
Total non-interest expense			$	129,576					130,604						134,982						130,060												(1,028)						(5,406)						(484)

Total non-interest expense of $130 million for the current quarter decreased $1.0 million, or 79 basis points, over the prior quarter and decreased $484 thousand, or 37 basis points, over the prior year third quarter. Compensation and employee benefits expense of $77.4 million for the current quarter decreased $1.4 million, or 2 percent, from the prior quarter and decreased $3.2 million, or 4 percent, over the prior year third quarter, which was driven primarily by decreases in accrued expenses for employee benefits. Regulatory assessments and insurance of $6.1 million, increased $2.7 million, or 81 percent, over the prior year third quarter and was primarily due to the Federal Deposit Insurance Corporation (“FDIC”) uniformly increasing all depository institutions premiums at the beginning of the current year. “The reduction in non-interest expense reflects the Company’s continued focus on staffing levels and containing costs in other areas,” said Ron Copher, Chief Financial Officer.

Tax expense during the third quarter of 2023 was $11.7 million, a decrease of $993 thousand, or 8 percent, compared to the prior quarter and a decrease of $6.3 million, or 35 percent, from the prior year third quarter. The effective tax rate in the current quarter was 18.3 percent compared to 18.8 percent in the prior quarter and 18.5 percent in the prior year third quarter.

The efficiency ratio was 63.31 percent in the current quarter compared to 62.73 percent in the prior quarter and 52.76 percent in the prior year third quarter. The increase from prior quarter and prior year third quarter was primarily attributable to the increase in interest expense in the current quarter that outpaced the increase in interest income.

Income Summary

			Nine Months ended
(Dollars in thousands)			Sep 30, 2023						Sep 30, 2022						$ Change						% Change
Net interest income
Interest income			$	744,159					$	604,555					$	139,604					23		%
Interest expense			218,933						20,235						198,698						982		%
Total net interest income			525,226						584,320						(59,094)						(10)		%
Non-interest income
Service charges and other fees			56,042						53,390						2,652						5		%
Miscellaneous loan fees and charges			12,451						11,445						1,006						9		%
Gain on sale of loans			9,974						17,857						(7,883)						(44)		%
(Loss) gain on sale of debt securities			(202)						101						(303)						(300)		%
Other income			8,949						9,456						(507)						(5)		%
Total non-interest income			87,214						92,249						(5,035)						(5)		%
Total Income			$	612,440					$	676,569					$	(64,129)					(9)		%
Net interest margin (tax-equivalent)			2.79		%				3.26		%

Net-interest income of $525 million for the first nine months of 2023 decreased $59.1 million, or 10 percent, over the same period of 2022 and was primarily driven by increased interest expense. Interest income of $744 million for the first nine months in the current year increased $139.6 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 5.14 percent for the first nine months of the current year, an increase of 54 basis points from the first nine months of the prior year loan yield of 4.60 percent.

Interest expense of $218.9 million for the first nine months of 2023 increased $199 million, or 982 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 0.62 percent for the nine months 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 nine months of the current year was 1.22 percent, which was an increase of 110 basis points over the prior year first nine months of 0.12 percent.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first nine months of 2023 was 2.79 percent, a 47 basis points decrease from the net interest margin of 3.26 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 2.77 percent for the first nine months of the current year, which was a 41 basis points decrease from the core margin of 3.18 percent in the same period of the prior year.

Non-interest income of $87.2 million for the first nine months of 2023 decreased $5.0 million, or 5 percent, over the same period last year and was primarily due to the decrease in gain on sale of residential loans, which was partially offset by the increase in service charges and other fees. Gain on sale of residential loans of $10.0 million in the current year decreased by $7.9 million, or 44 percent, over the prior year as result of the reduction in residential purchase and refinance activity as mortgage rates significantly increased during the current year. Miscellaneous loan fees of $12.5 million, increased $1.0 million, or 9 percent, which was primarily driven by increased credit card interchange fees due to increased activity.

Non-interest Expense Summary

Total non-interest expense of $395 million for the first nine months of 2023 increased $5.3 million, or 1 percent, over the same period in the prior year. Regulatory assessments and insurance of $16.3 million for the first nine months of 2023 increased $6.8 million, or 72 percent, over the prior year and was primarily due to the FDIC uniformly increasing all depository institutions premiums beginning in 2023. Other expense of $63.6 million for the first nine months of 2023 decreased $3.2 million, or 5 percent, from the first nine months 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 $842 thousand in the first nine months of the current year compared to $9.2 million in the same period of last year.

Provision for Credit Losses

The provision for credit loss expense was $11.8 million for the first nine months of 2023 and decreased $2.1 million, or 15 percent, over the same period of the prior year. The provision for credit loss expense for the first nine months of 2023 included provision for credit loss expense of $16.6 million on the loan portfolio and credit loss benefit of $4.8 million on the unfunded loan commitments. Net charge-offs during the first nine months of the current year were $6.6 million compared to $5.8 million during the same period of the prior year.

Tax expense of $36.9 million for the first nine months of 2023 decreased $12.4 million, or 25 percent, over the first nine months of the prior year. The effective tax rate for first nine months of 2023 was 17.9 percent compared to 18.1 percent for the first nine months of 2022.

The efficiency ratio was 62.10 percent for the first nine months of 2023 compared to 55.14 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 that outpaced the increase in interest income.

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 wars in Ukraine and the Middle East;

•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, October 20, 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/BIbe718214dea94214b3ab02d160926dd0. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/w8zz3hr8. 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 $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2023 and June 30, 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 $1.9 million and $1.8 million on tax-exempt debt securities income for the three months ended September 30, 2023 and June 30, 2023, respectively.

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

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

			Three Months ended
			September 30, 2023																		September 30, 2022
(Dollars in thousands)			Average Balance						Interest & Dividends						Average Yield/ Rate						Average Balance						Interest & Dividends						Average Yield/ Rate
Assets
Residential real estate loans			$	1,649,947					$	18,594					4.51		%				$	1,338,606					$	13,738					4.11		%
Commercial loans 1			13,120,479						174,822						5.29		%				12,146,551						144,357						4.72		%
Consumer and other loans			1,263,775						19,478						6.11		%				1,156,305						14,250						4.89		%
Total loans 2			16,034,201						212,894						5.27		%				14,641,462						172,345						4.67		%
Tax-exempt debt securities 3			1,732,227						14,486						3.34		%				2,000,404						18,484						3.70		%
Taxable debt securities 4			8,485,157						41,052						1.94		%				8,426,933						29,297						1.39		%
Total earning assets			26,251,585						268,432						4.06		%				25,068,799						220,126						3.48		%
Goodwill and intangibles			1,020,868																		1,030,961
Non-earning assets			528,145																		604,754
Total assets			$	27,800,598																	$	26,704,514
Liabilities
Non-interest bearing deposits			$	6,461,350					$	—					—		%				$	8,158,207					$	—					—		%
NOW and DDA accounts			5,231,741						12,906						0.98		%				5,473,458						794						0.06		%
Savings accounts			2,840,620						3,492						0.49		%				3,319,167						260						0.03		%
Money market deposit accounts			3,039,177						12,646						1.65		%				3,999,758						1,483						0.15		%
Certificate accounts			2,462,266						23,151						3.73		%				940,507						722						0.30		%
Total core deposits			20,035,154						52,195						1.03		%				21,891,097						3,259						0.06		%
Wholesale deposits 5			188,523						2,502						5.27		%				3,946						20						2.05		%
Repurchase agreements			1,401,765						10,972						3.11		%				917,104						675						0.29		%
FHLB advances			—						—						—		%				541,630						3,318						2.40		%
FRB Bank Term Funding			2,740,000						30,229						4.38		%				—						—						—		%
Subordinated debentures and other borrowed funds			208,336						1,954						3.72		%				202,383						1,803						3.54		%
Total funding liabilities			24,573,778						97,852						1.58		%				23,556,160						9,075						0.15		%
Other liabilities			302,564																		261,735
Total liabilities			24,876,342																		23,817,895
Stockholders’ Equity
Common stock			1,109																		1,108
Paid-in capital			2,347,323																		2,341,648
Retained earnings			1,035,276																		920,372
Accumulated other comprehensive loss			(459,452)																		(376,509)
Total stockholders’ equity			2,924,256																		2,886,619
Total liabilities and stockholders’ equity			$	27,800,598																	$	26,704,514
Net interest income (tax-equivalent)									$	170,580																	$	211,051
Net interest spread (tax-equivalent)															2.48		%																3.33		%
Net interest margin (tax-equivalent)															2.58		%																3.34		%

______________________________

1 Includes tax effect of $1.4 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended September 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 $1.9 million and $3.8 million on tax-exempt debt securities income for the three months ended September 30, 2023 and 2022, respectively.

4 Includes tax effect of $215 thousand and $225 thousand on federal income tax credits for the three months ended September 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 $4.4 million and $4.6 million on tax-exempt municipal loan and lease income for the nine months ended September 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 $7.0 million and $10.9 million on tax-exempt debt securities income for the nine months ended September 30, 2023 and 2022, respectively.

4 Includes tax effect of $644 thousand and $676 thousand on federal income tax credits for the nine months ended September 30, 2023 and 2022, respectively.

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