October 24, 2024

3rd Quarter 2024 Highlights:

•Diluted earnings per share for the current quarter was $0.45 per share, an increase of 15 percent from the prior quarter diluted earnings per share of $0.39 per share.

•Net income was $51.1 million for the current quarter, an increase of $6.3 million, or 14 percent, from the prior quarter net income of $44.7 million and a decrease of $1.4 million, or 3 percent, from the prior year third quarter net income of $52.4 million.

•The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.83 percent, an increase of 15 basis points from the prior quarter net interest margin of 2.68 percent.

•Net interest income was $180 million for the current quarter, an increase of $13.8 million, or 8 percent, from the prior quarter net interest income of $166 million and an increase of $13.2 million, or 8 percent, from the prior year third quarter net interest income of $167 million.

•The loan portfolio of $17.181 billion increased $329 million, or 2 percent, during the current quarter and organically increased $57.6 million, or 1 percent annualized, during the current quarter.

•Total core deposits of $20.711 billion, increased $613 million, or 3 percent, during the current quarter and organically increased $216 million, or 4 percent annualized, during the current quarter.

•Non-interest bearing deposits of $6.408 billion, increased $314 million, or 5 percent, during the current quarter and organically increased $221 million, or 14 percent annualized, during the current quarter.

•The loan yield of 5.69 percent in the current quarter increased 11 basis points from the prior quarter loan yield of 5.58 percent and increased 42 basis points from the prior year third quarter loan yield of 5.27 percent.

•The total cost of funding (including non-interest bearing deposits) of 1.79 percent in the current quarter decreased 1 basis point from the prior quarter total cost of funding of 1.80 percent.

•Stockholders’ equity of $3.245 billion increased $108 million, or 3 percent, during the current quarter and increased $370 million, or 13 percent, over the prior year third quarter.

•The Company declared a quarterly dividend of $0.33 per share. The Company has declared 158 consecutive quarterly dividends and has increased the dividend 49 times.

•The Company completed the acquisition and core system conversion of six Montana branch locations of Rocky Mountain Bank division (“RMB”) of HTLF Bank, a wholly owned subsidiary of Heartland Financial USA, Inc. with total assets of $403 million, total gross loans of $272 million and total deposits of $397 million.

Year-to-date 2024 Highlights:

•Net income for the first nine months of 2024 was $128 million, a decrease of $40.2 million, or 24 percent, from the prior year first nine months net income of $169 million.

•Interest income for the first nine months of 2024 was $843 million, an increase of $98.7 million, or 13 percent, over the $744 million of interest income for the first nine months of 2023.

•The loan portfolio increased $983 million, or 6 percent, during the first nine months of 2024 and organically increased $261 million, or 2 percent, during the first nine months of 2024.

•The $2.740 billion of FRB Bank Term Funding (“BTFP”) was paid off during the current year through a combination of Federal Home Loan Bank (“FHLB”) advances and cash.

•Dividends declared in the first nine months of 2024 were $0.99 per share.

•The Company completed the acquisition and core system conversion of Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, “Wheatland”), a leading eastern Washington community bank headquartered in Spokane with total assets of $778 million.

Financial Summary

KALISPELL, Mont., Oct 24, 2024 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $51.1 million for the current quarter, an increase of $6.3 million, or 14 percent from the prior quarter net income of $44.7 million and a decrease of $1.4 million, or 3 percent, from the $52.4 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.45 per share, an increase of 15 percent from the prior quarter diluted earnings per share of $0.39 per share and a decrease of 4 percent from the prior year third quarter diluted earnings per share of $0.47. The decrease in net income compared to the prior year third quarter was due to the increase in funding costs and the increased costs associated with the acquisitions of Wheatland and RMB over the prior year third quarter. “Our positive business trends through the third quarter. We were very pleased to see solid earnings, margin and deposit growth,” said Randy Chesler, President and Chief Executive Officer. “We finalized the acquisition of the Rocky Mountain Bank Montana branches from Heartland and welcome the employees to the Glacier team.”

Net income for the nine months ended September 30, 2024 was $128 million, a decrease of $40.2 million, or 24 percent, from the $169 million net income for the first nine months of the prior year. Diluted earnings per share for the first nine months of 2024 was $1.13 per share, a decrease of $0.39 per share from the prior year first nine months diluted earnings per share of $1.52. The decrease in net income for the first nine months of the current year compared to the prior year first nine months was primarily due to the significant increase in funding costs. In addition, the current year-to-date results included increased operating costs and a $9.7 million provision for credit losses associated with the acquisitions of Wheatland and RMB.

On July 19, 2024, the Company completed the acquisition of six RMB branches in Montana. The branches have been combined with Glacier Bank divisions operating in Montana, including First Bank of Montana, First Security Bank of Bozeman, First Security Bank of Missoula, Valley Bank, and Western Security Bank. On January 31, 2024, the Company completed the acquisition of Wheatland, headquartered in Spokane, Washington. Wheatland had 14 branches in eastern Washington and was combined with the North Cascades Bank division under the name Wheatland Bank, division of Glacier Bank. The Wheatland Bank division now operates with a combined 23 branches in Central and Eastern Washington and is a Top 5 community bank by deposit share in Eastern Washington. The Company’s results of operations and financial condition include the Wheatland and RMB acquisitions beginning on the acquisition date of each. The following table discloses the preliminary fair value estimates of select classifications of assets and liabilities acquired:

Asset Summary

																											$ Change from
(Dollars in thousands)			Sep 30, 2024						Jun 30, 2024						Dec 31, 2023						Sep 30, 2023						Jun 30, 2024						Dec 31, 2023						Sep 30, 2023
Cash and cash equivalents			$	987,833					800,779						1,354,342						1,672,094						187,054						(366,509)						(684,261)
Debt securities, available-for-sale			4,436,578						4,499,541						4,785,719						4,741,738						(62,963)						(349,141)						(305,160)
Debt securities, held-to-maturity			3,348,698						3,400,403						3,502,411						3,553,805						(51,705)						(153,713)						(205,107)
Total debt securities			7,785,276						7,899,944						8,288,130						8,295,543						(114,668)						(502,854)						(510,267)
Loans receivable
Residential real estate			1,837,697						1,771,528						1,704,544						1,653,777						66,169						133,153						183,920
Commercial real estate			10,833,841						10,713,964						10,303,306						10,292,446						119,877						530,535						541,395
Other commercial			3,177,051						3,066,028						2,901,863						2,916,785						111,023						275,188						260,266
Home equity			931,440						905,884						888,013						869,963						25,556						43,427						61,477
Other consumer			401,158						394,587						400,356						402,075						6,571						802						(917)
Loans receivable			17,181,187						16,851,991						16,198,082						16,135,046						329,196						983,105						1,046,141
Allowance for credit losses			(205,170)						(200,955)						(192,757)						(192,271)						(4,215)						(12,413)						(12,899)
Loans receivable, net			16,976,017						16,651,036						16,005,325						15,942,775						324,981						970,692						1,033,242
Other assets			2,456,643						2,453,581						2,094,832						2,153,149						3,062						361,811						303,494
Total assets			$	28,205,769					27,805,340						27,742,629						28,063,561						400,429						463,140						142,208

Total debt securities of $7.785 billion at September 30, 2024 decreased $115 million, or 1 percent, during the current quarter and decreased $510 million, or 6 percent, from the prior year third quarter. Debt securities represented 28 percent of total assets at September 30, 2024 compared to 30 percent at December 31, 2023 and 30 percent at September 30, 2023.

The loan portfolio of $17.181 billion at September 30, 2024 increased $329 million, or 2 percent, during the current quarter. Excluding the RMB acquisition, the loan portfolio organically increased $57.6 million, or 1 percent annualized, during the current quarter. Excluding the RMB and Wheatland acquisitions, the loan portfolio organically increased $261 million, or 2 percent, during the first nine months of 2024 and increased $324 million, or 2 percent, from the prior year third quarter.

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, 2024						Jun 30, 2024						Dec 31, 2023						Sep 30, 2023
Allowance for credit losses
Balance at beginning of period			$	192,757					192,757						182,283						182,283
Acquisitions			3						3						—						—
Provision for credit losses			21,138						14,157						20,790						16,609
Charge-offs			(12,406)						(8,430)						(15,095)						(10,284)
Recoveries			3,678						2,468						4,779						3,663
Balance at end of period			$	205,170					200,955						192,757						192,271
Provision for credit losses
Loan portfolio			$	21,138					14,157						20,790						16,609
Unfunded loan commitments			(1,366)						(2,390)						(5,995)						(4,827)
Total provision for credit losses			$	19,772					11,767						14,795						11,782
Other real estate owned			$	432					432						1,032						—
Other foreclosed assets			201						198						471						48
Accruing loans 90 days or more past due			11,551						4,692						3,312						3,855
Non-accrual loans			15,937						12,686						20,816						38,380
Total non-performing assets			$	28,121					18,008						25,631						42,283
Non-performing assets as a percentage of subsidiary assets			0.10		%				0.06		%				0.09		%				0.15		%
Allowance for credit losses as a percentage of non-performing loans			730		%				1,116		%				799		%				455		%
Allowance for credit losses as a percentage of total loans			1.19		%				1.19		%				1.19		%				1.19		%
Net charge-offs as a percentage of total loans			0.05		%				0.04		%				0.06		%				0.04		%
Accruing loans 30-89 days past due			$	56,213					49,678						49,967						15,253
U.S. government guarantees included in non-performing assets			$	1,802					1,228						1,503						1,057

Non-performing assets as a percentage of subsidiary assets at September 30, 2024 was 0.10 percent compared to 0.06 percent in the prior quarter and 0.15 percent in the prior year third quarter. Non-performing assets of $28.1 million at September 30, 2024 increased $10.1 million, or 56 percent, over the prior quarter and decreased $14.2 million, or 33 percent, over the prior year third quarter.

Early stage delinquencies (accruing loans 30-89 days past due) as a percentage of loans at September 30, 2024 were 0.33 percent compared to 0.29 percent for the prior quarter end and 0.09 percent for the prior year third quarter.

Early stage delinquencies of $56.2 million at September 30, 2024 increased $6.5 million from the prior quarter and increased $41.0 million from prior year third quarter.

The current quarter credit loss expense of $8.0 million included $2.8 million of provision for credit losses on loans and $799 thousand of provision for credit losses on unfunded commitments from the acquisition of RMB. Excluding the acquisition of RMB, the current quarter credit loss expense was $4.4 million, including $4.2 million of credit loss expense from loans and $225 thousand of credit loss expense from unfunded loan commitments.

For the first nine months of the current year, the provision for credit losses of $19.8 million included $8.1 million of provision for credit losses on loans and $1.6 million of provision for credit losses on unfunded loan commitments from the acquisitions of Wheatland and RMB.

The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at September 30, 2024 was 1.19 percent and remained unchanged from the prior year end and 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. 

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

(Dollars in thousands)			Provision for Credit Losses Loans						Net Charge-Offs						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 2024			$	6,981					$	2,766					1.19		%				0.33		%				0.10		%
Second quarter 2024			5,066						2,890						1.19		%				0.29		%				0.06		%
First quarter 2024			9,091						3,072						1.19		%				0.37		%				0.09		%
Fourth quarter 2023			4,181						3,695						1.19		%				0.31		%				0.09		%
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		%

Net charge-offs for the current quarter were $2.8 million compared to $2.9 million in the prior quarter and $2.2 million for the prior year third quarter. Net charge-offs of $2.8 million included $1.9 million in deposit overdraft net charge-offs and $815 thousand of net loan charge-offs.

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, 2024						Jun 30, 2024						Dec 31, 2023						Sep 30, 2023						Jun 30, 2024						Dec 31, 2023						Sep 30, 2023
Deposits
Non-interest bearing deposits			$	6,407,728					6,093,430						6,022,980						6,465,353						314,298						384,748						(57,625)
NOW and DDA accounts			5,363,476						5,219,838						5,321,257						5,253,367						143,638						42,219						110,109
Savings accounts			2,801,077						2,862,034						2,833,887						2,872,362						(60,957)						(32,810)						(71,285)
Money market deposit accounts			2,854,540						2,858,850						2,831,624						2,994,631						(4,310)						22,916						(140,091)
Certificate accounts			3,284,609						3,064,613						2,915,393						2,742,017						219,996						369,216						542,592
Core deposits, total			20,711,430						20,098,765						19,925,141						20,327,730						612,665						786,289						383,700
Wholesale deposits			3,334						2,994						4,026						67,434						340						(692)						(64,100)
Deposits, total			20,714,764						20,101,759						19,929,167						20,395,164						613,005						785,597						319,600
Repurchase agreements			1,831,501						1,629,504						1,486,850						1,499,696						201,997						344,651						331,805
Deposits and repurchase agreements, total			22,546,265						21,731,263						21,416,017						21,894,860						815,002						1,130,248						651,405
Federal Home Loan Bank advances			1,800,000						2,350,000						—						—						(550,000)						1,800,000						1,800,000
FRB Bank Term Funding			—						—						2,740,000						2,740,000						—						(2,740,000)						(2,740,000)
Other borrowed funds			84,168						88,149						81,695						73,752						(3,981)						2,473						10,416
Subordinated debentures			133,065						133,024						132,943						132,903						41						122						162
Other liabilities			397,221						365,459						351,693						347,452						31,762						45,528						49,769
Total liabilities			$	24,960,719					24,667,895						24,722,348						25,188,967						292,824						238,371						(228,248)

Total core deposits of $20.711 billion at September 30, 2024 increased $613 million, or 3 percent, from the prior quarter and increased $786 million, or 4 percent, from the prior year end. Total core deposits organically increased $217 million, or 4 percent annualized, during the current quarter and decreased $227 million, or 1 percent, from the prior year end.

Total non-interest bearing deposits of $6.408 billion, increased $314 million, or 5 percent, from the prior quarter and increased $385 million, or 6 percent, from the prior year end. Non-interest bearing deposits organically increased $221 million, or 14 percent annualized, during the current quarter and increased $13.6 million, or 23 basis points, from the prior year end. Non-interest bearing deposits represented 31 percent of total deposits at June 30, 2024, compared to 30 percent at December 31, 2023 and 32 percent at September 30, 2023.

FHLB borrowings of $1.800 billion decreased $550 million, or 23 percent, during the current quarter. Upon maturity in the first quarter of 2024, the Company paid off its $2.740 billion BTFP borrowings with a combination of $2.140 billion in FHLB borrowings and cash.

Stockholders’ Equity Summary

																											$ Change from
(Dollars in thousands, except per share data)			Sep 30, 2024						Jun 30, 2024						Dec 31, 2023						Sep 30, 2023						Jun 30, 2024						Dec 31, 2023						Sep 30, 2023
Common equity			$	3,507,356					3,492,096						3,394,394						3,374,961						15,260						112,962						132,395
Accumulated other comprehensive loss			(262,306)						(354,651)						(374,113)						(500,367)						92,345						111,807						238,061
Total stockholders’ equity			3,245,050						3,137,445						3,020,281						2,874,594						107,605						224,769						370,456
Goodwill and intangibles, net			(1,106,336)						(1,066,790)						(1,017,263)						(1,019,690)						(39,546)						(89,073)						(86,646)
Tangible stockholders’ equity			$	2,138,714					2,070,655						2,003,018						1,854,904						68,059						135,696						283,810

Stockholders’ equity to total assets			11.50		%				11.28		%				10.89		%				10.24		%
Tangible stockholders’ equity to total tangible assets			7.89		%				7.74		%				7.49		%				6.86		%
Book value per common share			$	28.62					27.67						27.24						25.93						0.95						1.38						2.69
Tangible book value per common share			$	18.86					18.26						18.06						16.73						0.60						0.80						2.13

Tangible stockholders’ equity of $2.139 billion at September 30, 2024 increased $68.1 million, or 3 percent, compared to the prior quarter and was primarily the result of a decrease in unrealized loss on the available-for-sale debt securities which was partially offset by the increase in goodwill and core deposit intangibles associated with the acquisition of RMB. Tangible stockholders’ equity at September 30, 2024 increased $136 million, or 7 percent, compared to the prior year end and was primarily due to $92.4 million of Company common stock issued for the acquisition of Wheatland and the decrease in the unrealized loss on the available-for-sale securities. The increase was partially offset by the increase in goodwill and core deposits associated with the acquisitions of Wheatland and RMB. Tangible book value per common share of $18.86 at the current quarter end increased $0.80 per share, or 4 percent, from the prior year end and increased $2.13 per share, or 13 percent, from the prior year third quarter.

Cash Dividends

On September 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable October 17, 2024 to shareholders of record on October 8, 2024. The dividend was the Company’s 158th 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, 2024						Jun 30, 2024						Mar 31, 2024						Sep 30, 2023												Jun 30, 2024						Mar 31, 2024						Sep 30, 2023
Net interest income
Interest income			$	289,578					273,834						279,402						264,906												15,744						10,176						24,672
Interest expense			109,347						107,356						112,922						97,852												1,991						(3,575)						11,495
Total net interest income			180,231						166,478						166,480						167,054												13,753						13,751						13,177
Non-interest income
Service charges and other fees			20,587						19,422						18,563						19,304												1,165						2,024						1,283
Miscellaneous loan fees and charges			4,970						4,821						4,362						4,322												149						608						648
Gain on sale of loans			4,898						4,669						3,362						4,046												229						1,536						852
Gain (loss) on sale of securities			26						(12)						16						(65)												38						10						91
Other income			4,223						3,304						3,686						2,633												919						537						1,590
Total non-interest income			34,704						32,204						29,989						30,240												2,500						4,715						4,464
Total income			$	214,935					198,682						196,469						197,294												16,253						18,466						17,641
Net interest margin (tax-equivalent)			2.83		%				2.68		%				2.59		%				2.58		%

The current quarter interest income of $290 million increased $15.7 million, or 6 percent, over the prior quarter and increased $24.7 million, or 9 percent, over the prior year third quarter, with both increases being primarily due to the increase in the loan yields and the increase in average balances of the loan portfolio. The loan yield of 5.69 percent in the current quarter increased 11 basis points from the prior quarter loan yield of 5.58 percent and increased 42 basis points from the prior year third quarter loan yield of 5.27 percent.

The current quarter interest expense of $109 million increased $2.0 million, or 2 percent, over the prior quarter and was primarily attributable to the increase in average deposit balances. The current quarter interest expense increased $11.5 million, or 12 percent, over the prior year third quarter and was primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 1.37 percent for the current quarter compared to 1.36 percent in the prior quarter and 1.03 percent for the prior year third quarter. The total cost of funding (including non-interest bearing deposits) of 1.79 percent in the current quarter decreased 1 basis point from the prior quarter. The current quarter cost of funds increased 21 basis points from the prior year third quarter which was primarily the result of the increased deposit rates.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.83 percent, an increase of 15 basis points from the prior quarter net interest margin of 2.68 percent and was primarily driven by an increase in loan yields. The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was an increase of 25 basis points from the prior year third quarter net interest margin of 2.58 percent and was primarily driven by an increase in loan yields which more than offset the total cost of funding. Core net interest margin excludes the impact from discount accretion and non-accrual interest. Excluding the 4 basis points from discount accretion, the core net interest margin was 2.79 percent in the current quarter compared to 2.63 percent in the prior quarter and 2.55 in the prior year third quarter. “The growth in the loan portfolio at higher yields was funded primarily by the remix of lower yield cash flow from the securities portfolio,” said Ron Copher, Chief Financial Officer. “In addition, the growth in non-interest bearing deposits and the reduction in wholesale funding contributed to the improvement in the current quarter net interest margin.”

Non-interest income for the current quarter totaled $34.7 million, which was an increase of $2.5 million, or 8 percent, over the prior quarter and an increase of $4.5 million, or 15 percent, over the prior year third quarter. Service charges and other fees of $20.6 million for the current quarter increased $1.2 million, or 6 percent, compared to the prior quarter and increased $1.3 million, or 7 percent, compared to the prior year third quarter. Gain on the sale of residential loans of $4.9 million for the current quarter increased $229 thousand, or 5 percent, compared to the prior quarter and increased $852 thousand, or 21 percent, from the prior year third quarter. Other income of $4.2 million increased $919 thousand, or 28 percent, over the prior quarter and increased $1.6 million, or 60 percent, over the prior year third quarter, with both increases being driven by a $1.2 million gain on the sale of repossessed property during the current quarter.

Non-interest Expense Summary

			Three Months ended																								$ Change from
(Dollars in thousands)			Sep 30, 2024						Jun 30, 2024						Mar 31, 2024						Sep 30, 2023												Jun 30, 2024						Mar 31, 2024						Sep 30, 2023
Compensation and employee benefits			$	85,083					84,434						85,789						77,387												649						(706)						7,696
Occupancy and equipment			11,989						11,594						11,883						10,553												395						106						1,436
Advertising and promotions			4,062						4,362						3,983						4,052												(300)						79						10
Data processing			9,196						9,387						9,159						8,730												(191)						37						466
Other real estate owned and foreclosed assets			13						149						25						15												(136)						(12)						(2)
Regulatory assessments and insurance			5,150						5,393						7,761						6,060												(243)						(2,611)						(910)
Intangibles amortization			3,367						3,017						2,760						2,428												350						607						939
Other expenses			25,848						22,616						30,483						20,351												3,232						(4,635)						5,497
Total non-interest expense			$	144,708					140,952						151,843						129,576												3,756						(7,135)						15,132

Total non-interest expense of $145 million for the current quarter increased $3.8 million, or 3 percent, over the prior quarter and increased $15.1 million, or 12 percent, over the prior year third quarter. Compensation and employee benefits increased $7.7 million, or 10 percent, from the prior year third quarter and was driven by annual salary increases, increased performance-related compensation and increases from the acquisitions of Wheatland and RMB.

Other expenses of $25.8 million increased $3.2 million, or 14 percent, from the prior quarter, which was attributable to several miscellaneous category increases including an increase of $1.2 million in outside consulting services. In addition, the current quarter other expenses included $586 thousand of gains from the sale of former branch facilities and disposal of fixed assets compared to $1.5 million in the prior quarter. Other expenses increased $5.5 million, or 27 percent, from the prior year third quarter as a result of several miscellaneous category increases including an increase of $2.7 million in outside consulting services and an increase of $1.6 million in acquisition-related expenses. Acquisition-related expense was $1.9 million in the current quarter compared to $1.8 million in the prior quarter and $279 thousand in the prior year third quarter.

Tax expense during the third quarter of 2024 was $11.2 million, an increase of $1.7 million, or 18 percent, compared to the prior quarter and a decrease of $567 thousand, or 5 percent, from the prior year third quarter. The effective tax rate in the current quarter was 17.9 percent compared to 17.5 percent in the prior quarter and 18.3 percent in the prior year third quarter.

The efficiency ratio was 64.92 percent in the current quarter compared to 67.97 percent in the prior quarter and 63.31 percent in the prior year third quarter. The decrease from the prior quarter was principally driven by the increase in net interest income that more than offset the increase in non-interest expense.

Income Summary

			Nine months ended
(Dollars in thousands)			Sep 30, 2024						Sep 30, 2023						$ Change						% Change
Net interest income
Interest income			$	842,814					$	744,159					$	98,655					13		%
Interest expense			329,625						218,933						110,692						51		%
Total net interest income			513,189						525,226						(12,037)						(2)		%
Non-interest income
Service charges and other fees			58,572						56,042						2,530						5		%
Miscellaneous loan fees and charges			14,153						12,451						1,702						14		%
Gain on sale of loans			12,929						9,974						2,955						30		%
Gain (loss) on sale of securities			30						(202)						232						(115)		%
Other income			11,213						8,949						2,264						25		%
Total non-interest income			96,897						87,214						9,683						11		%
Total Income			$	610,086					$	612,440					$	(2,354)					—		%
Net interest margin (tax-equivalent)			2.70		%				2.79		%

Net-interest income of $513 million for the first nine months of 2024 decreased $12.0 million, or 2 percent, over 2023 and was primarily driven by increased interest expense which outpaced the increase in interest income. Interest income of $843 million for 2024 increased $98.7 million, or 13 percent, from the prior year and was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The loan yield was 5.58 percent during the first nine months of 2024, an increase of 44 basis points from the prior year first nine months loan yield of 5.14 percent.

Interest expense of $330 million for the first nine months of 2024 increased $111 million, or 51 percent, over the same period in the prior year and was primarily the result of higher interest rates on deposits. Core deposit cost (including non-interest bearing deposits) was 1.36 percent for the first nine months of 2024 compared to 0.62 percent for the same period in the prior year. The total funding cost (including non-interest bearing deposits) for the first nine months of 2024 was 1.81 percent, which was an increase of 59 basis points over the first nine months of the prior year funding cost of 1.22 percent.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first nine months of 2024 was 2.70 percent, a 9 basis points decrease from the net interest margin of 2.79 percent for the first nine months of the prior year. Excluding the 4 basis points from discount accretion and the 1 basis point from non-accrual interest, the core net interest margin was 2.65 percent in the first nine months of the current year compared to 2.77 percent in the prior year first nine months.

Non-interest income of $96.9 million for the first nine months of 2024 increased $9.7 million, or 11 percent, over the same period last year. Gain on sale of residential loans of $12.9 million for the first nine months of 2024 increased by $3.0 million, or 30 percent, over the first nine months of the prior year. Other income of $11.2 million for the first nine months of 2024 increased $2.3 million, or 25 percent, over the same period last year and was primarily driven by a $1.2 million gain on the sale of repossessed property during the current quarter.

Non-interest Expense Summary

Total non-interest expense of $438 million for the first nine months of 2024 increased $42.3 million, or 11 percent, over the same period in the prior year. Compensation and employee benefits expense of $255 million in the first nine months of 2024 increased $17.7 million, or 7 percent, over the same period in the prior year and was driven by annual salary increases and the acquisitions of Wheatland and RMB. Data processing expenses of $27.7 million for the first nine months of 2024 increased $2.5 million, or 10 percent, from the same period in the prior year. Regulatory assessments and insurance expense of $18.3 million for the first nine months of 2024 increased $2.0 million, or 12 percent, over the same period in the prior year which was principally due to the accrual adjustment for the FDIC special assessment. Other expenses of $78.9 million for the first nine months of 2024 increased $15.3 million, or 24 percent, from the first nine months of the prior year and was primarily driven by an increase of $8.6 million of acquisition-related expenses, which was partially offset by gains of $3.1 million from the sale of former branch facilities and disposal of fixed assets.

Provision for Credit Losses

The provision for credit loss expense was $19.8 million for the first nine months of 2024, an increase of $8.0 million, or 68 percent, over the same period in the prior year and was primarily attributable to $9.7 million from the acquisitions of Wheatland and RMB. Net charge-offs for the first nine months of 2024 were $8.7 million compared to $6.6 million in the first nine months of 2023.

Tax expense of $24.4 million for the first nine months of 2024 decreased $12.5 million, or 34 percent, over the prior year. The effective tax rate for the first nine months of 2024 was 16.0 percent compared to 17.9 percent for the same period in the prior year. The decrease in tax expense and the resulting effective tax rate was the result of a combination of increased federal tax credits and a decrease in the pre-tax income.

The efficiency ratio was 68.98 percent for the first nine months of 2024 compared to 62.10 percent for the same period of 2023. 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 and increased non-interest expense.

Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or 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 FDIC insurance rates and assessments, changes in the review and regulation of bank mergers, or increased banking and consumer protection regulations, that may adversely affect the Company’s business and strategies;

•risks related to overall economic conditions, including the impact on the economy of a uncertain 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 pending or future 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 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 25, 2024. 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/BI32ee03ea65c34bd794e0027768d383d4. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/9bh88vfv.

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), The Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), Western Security Bank (Billings, MT), and Wheatland Bank (Spokane, WA).

______________________________

1 Includes tax effect of $1.7 million and $1.6 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2024 and June 30, 2024, 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 $2.1 million and $2.2 million on tax-exempt debt securities income for the three months ended September 30, 2024 and June 30, 2024, respectively.

4     Includes interest income of $4.8 million and $1.9 million on average interest-bearing cash balances of $357.0 million and $0.14 billion for the three months ended September 30, 2024 and June 30, 2024, respectively.

5 Includes tax effect of $203 thousand and $211 thousand on federal income tax credits for the three months ended September 30, 2024 and June 30, 2024, respectively.

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

			Three Months ended
			September 30, 2024																		September 30, 2023
(Dollars in thousands)			Average Balance						Interest & Dividends						Average Yield/ Rate						Average Balance						Interest & Dividends						Average Yield/ Rate
Assets
Residential real estate loans			$	1,850,066					$	23,118					5.00		%				$	1,649,947					$	18,594					4.51		%
Commercial loans 1			13,957,304						198,556						5.66		%				13,120,479						174,822						5.29		%
Consumer and other loans			1,324,142						23,188						6.97		%				1,263,775						19,478						6.11		%
Total loans 2			17,131,512						244,862						5.69		%				16,034,201						212,894						5.27		%
Tax-exempt debt securities 3			1,660,643						14,710						3.54		%				1,732,227						14,486						3.34		%
Taxable debt securities 4, 5			7,073,967						34,001						1.92		%				8,485,157						41,052						1.94		%
Total earning assets			25,866,122						293,573						4.52		%				26,251,585						268,432						4.06		%
Goodwill and intangibles			1,092,632																		1,020,868
Non-earning assets			836,878																		528,145
Total assets			$	27,795,632																	$	27,800,598
Liabilities
Non-interest bearing deposits			$	6,237,166					$	—					—		%				$	6,461,350					$	—					—		%
NOW and DDA accounts			5,314,459						16,221						1.21		%				5,231,741						12,906						0.98		%
Savings accounts			2,829,203						5,699						0.80		%				2,840,620						3,492						0.49		%
Money market deposit accounts			2,887,173						15,048						2.07		%				3,039,177						12,646						1.65		%
Certificate accounts			3,211,842						33,597						4.16		%				2,462,266						23,151						3.73		%
Total core deposits			20,479,843						70,565						1.37		%				20,035,154						52,195						1.03		%
Wholesale deposits 6			3,122						42						5.47		%				188,523						2,502						5.27		%
Repurchase agreements			1,723,553						14,738						3.40		%				1,401,765						10,972						3.11		%
FHLB advances			1,828,533						22,344						4.78		%				—						—						—		%
FRB Bank Term Funding			—						—						—		%				2,740,000						30,229						4.38		%
Subordinated debentures and other borrowed funds			219,472						1,658						3.01		%				208,336						1,954						3.72		%
Total funding liabilities			24,254,523						109,347						1.79		%				24,573,778						97,852						1.58		%
Other liabilities			336,906																		302,564
Total liabilities			24,591,429																		24,876,342
Stockholders’ Equity
Stockholders’ equity			3,204,203																		2,924,256
Total liabilities and stockholders’ equity			$	27,795,632																	$	27,800,598
Net interest income (tax-equivalent)									$	184,226																	$	170,580
Net interest spread (tax-equivalent)															2.73		%																2.48		%
Net interest margin (tax-equivalent)															2.83		%																2.58		%

______________________________

1 Includes tax effect of $1.7 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2024 and 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 $2.1 million and $1.9 million on tax-exempt debt securities income for the three months ended September 30, 2024 and 2023, respectively.

4     Includes interest income of $4.8 million and $15.1 million on average interest-bearing cash balances of $357.0 million and $1,106.1 million for the three months ended September 30, 2024 and 2023, respectively.

5 Includes tax effect of $203 thousand and $215 thousand on federal income tax credits for the three months ended September 30, 2024 and 2023, respectively.

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

______________________________

1 Includes tax effect of $4.8 million and $4.4 million on tax-exempt municipal loan and lease income for the nine months ended September 30, 2024 and 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 $6.5 million and $7.0 million on tax-exempt debt securities income for the nine months ended September 30, 2024 and 2023, respectively.

4     Includes interest income of $17.2 million and $24.5 million on average interest-bearing cash balances of $631.7 million and $624.0 million for the nine months ended September 30, 2024 and 2023, respectively.

5 Includes tax effect of $629 thousand and $644 thousand on federal income tax credits for the nine months ended September 30, 2024 and 2023, respectively.