4th Quarter 2021 Highlights:

  • Net interest income, on a tax-equivalent basis, excluding the PPP loans, of $184 million, increased $29.4 million, or 19 percent, over the prior quarter net interest income of $154 million.
  • The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, organically grew $448 million, or 16 percent annualized, in the current quarter.
  • Core deposits organically increased $560 million, or 13 percent annualized, during the current quarter.
  • Received $201 million in PPP loan forgiveness proceeds from the U.S. Small Business Administration (“SBA”) during the current quarter compared to $327 million in the prior quarter.
  • The Company transferred the listing of its common stock to the New York Stock Exchange (“NYSE”) from the NASDAQ Global Select Market.
  • Declared and paid a regular quarterly dividend of $0.32 per share. The Company has declared 147 consecutive quarterly dividends and has increased the dividend 48 times.
  • Declared a special dividend of $0.10 per share. This was the 18th special dividend the Company has declared.

Year 2021 Highlights:

  • Record net income of $285 million, an increase of $18.4 million, or 7 percent, over the prior year net income of $266 million.
  • Diluted earnings per share of $2.86, an increase of 2 percent from the prior year diluted earnings per share of $2.81.
  • Net interest income, on a tax-equivalent basis, excluding the PPP loans, of $636 million, an increase of $57.5 million, or 10 percent, over the prior year net interest income of $578 million.
  • The loan portfolio, excluding the PPP loans, organically increased $1.160 billion, or 11 percent, in 2021.
  • Core deposits organically increased $3.278 billion, or 22 percent, during 2021.
  • The Company funded 8,525 PPP loans in the amount of $555 million during the first half of 2021.
  • The Company received $1.305 billion in PPP loan forgiveness proceeds from the U.S. Small Business Administration (“SBA”) during 2021.
  • Dividends declared of $1.37 per share, an increase of $0.04 per share, or 3 percent, over the prior year dividends of $1.33.
  • Completed the acquisition of Altabancorp, the parent company of Altabank, with total acquired assets of $4.132 billion. Based in American Fork, Utah, Altabank is the largest community bank in Utah. This was the Company’s 24th acquisition since 2000 and the largest acquisition in its history.

Financial Summary

 At or for the Three Months ended At or for the Year ended
(Dollars in thousands, except per share and market data)Dec 31,
2021		 Sep 30,
2021		 Jun 30,
2021		 Mar 31,
2021		 Dec 31,
2020		 Dec 31,
2021		 Dec 31,
2020
Operating results             
Net income$50,709  75,619  77,627  80,802  81,860  284,757  266,400 
Basic earnings per share$0.46  0.79  0.81  0.85  0.86  2.87  2.81 
Diluted earnings per share$0.46  0.79  0.81  0.85  0.86  2.86  2.81 
Dividends declared per share1$0.42  0.32  0.32  0.31  0.45  1.37  1.33 
Market value per share             
Closing$56.70  55.35  55.08  57.08  46.01  56.70  46.01 
High$60.54  56.84  63.05  67.35  47.05  67.35  47.05 
Low$52.62  48.62  52.99  44.55  31.29  44.55  26.66 
Selected ratios and other data             
Number of common stock shares outstanding 110,687,533  95,512,659  95,507,234  95,501,819  95,426,364  110,687,533  95,426,364 
Average outstanding shares - basic 110,687,365  95,510,772  95,505,877  95,465,801  95,418,958  99,313,255  94,883,864 
Average outstanding shares - diluted 110,789,632  95,586,202  95,580,904  95,546,922  95,492,258  99,398,250  94,932,353 
Return on average assets (annualized) 0.78% 1.43% 1.55% 1.73% 1.78% 1.33% 1.62%
Return on average equity (annualized) 6.28% 12.49% 13.25% 14.12% 14.27% 11.08% 12.15%
Efficiency ratio 57.68% 50.17% 49.92% 46.75% 50.34% 51.35% 49.97%
Dividend payout ratio2 91.30% 40.51% 39.51% 36.47% 52.33% 47.74% 47.33%
Loan to deposit ratio 63.24% 65.06% 67.64% 70.72% 76.29% 63.24% 76.29%
Number of full time equivalent employees 3,436  2,978  2,987  2,994  2,970  3,436  2,970 
Number of locations 224  194  194  193  193  224  193 
Number of ATMs 273  250  250  250  250  273  250 

______________________
1 Includes a special dividend declared of $0.10 and $0.15 per share for the three and twelve months ended December 31, 2021 and December 31, 2020, respectively.
2 Excluding the special dividend, the dividend payout ratio was 69.57 percent and 34.88 percent for the three months ended December 31, 2021 and 2020, respectively and 44.25 percent and 41.99 percent for the twelve months ended December 31, 2021 and 2020, respectively.


KALISPELL, Mont., Jan. 27, 2022 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $50.7 million for the current quarter, a decrease of $31.2 million, or 38 percent, from the $81.9 million of net income for the prior year fourth quarter. Diluted earnings per share for the current quarter was $0.46 per share, a decrease of 47 percent from the prior year fourth quarter diluted earnings per share of $0.86. The decrease in fourth quarter earnings over the prior year was driven primarily by the $22.3 million of credit loss expense and $8.2 million of acquisition-related expenses from the acquisition of Altabank. In addition, there was a $14.8 million decrease in gain on sale of loans with the slowing of purchase and refinance activity after the historic levels in the prior year. The credit loss expense due to the acquisition of Altabank reflects the requirement to fully fund an allowance for credit losses on loans and unfunded commitments post-acquisition. “The Glacier team ended 2021 on a high note with very strong net interest income and loan growth,” said Randy Chesler, President and Chief Executive Officer. “All of our Divisions across the West are extremely well positioned to thrive in 2022.”

Net income for 2021 was $285 million, an increase of $18.4 million, or 7 percent, from the $266 million net income from the prior year. Diluted earnings per share for the current year was $2.86 per share, an increase of 2 percent, from the diluted earnings per share of $2.81 for the same period last year.

On October 1, 2021, the Company completed the acquisition of Altabancorp, the parent company of Altabank, based in American Fork, Utah (collectively, “Alta”) and the largest community bank in Utah. Alta provides banking services to individuals and businesses in Utah with twenty-five banking offices from Preston, Idaho to St. George, Utah. Alta became the seventeenth division of the Company and significantly increased the Company’s presence in the State of Utah.

The Company’s results of operations and financial condition include the Alta acquisition beginning on the acquisition date and the following table discloses the preliminary fair value estimates of select classifications of assets and liabilities acquired:


 Altabank
(Dollars in thousands)October 1,
2021
Total assets4,131,662
Cash and cash equivalents1,622,727
Debt securities6,658
Loans receivable1,902,321
Non-interest bearing deposits1,201,464
Interest bearing deposits2,072,355
Borrowings—


Asset Summary

       $ Change from
(Dollars in thousands)Dec 31,
2021		 Sep 30,
2021		 Dec 31,
2020		 Sep 30,
2021		 Dec 31,
2020
Cash and cash equivalents$437,686  348,888  633,142  88,798  (195,456)
Debt securities, available-for-sale 9,170,849  7,390,580  5,337,814  1,780,269  3,833,035 
Debt securities, held-to-maturity 1,199,164  1,128,299  189,836  70,865  1,009,328 
Total debt securities 10,370,013  8,518,879  5,527,650  1,851,134  4,842,363 
Loans receivable         
Residential real estate 1,051,883  781,538  802,508  270,345  249,375 
Commercial real estate 8,630,831  6,912,569  6,315,895  1,718,262  2,314,936 
Other commercial 2,664,190  2,598,616  3,054,817  65,574  (390,627)
Home equity 736,288  660,920  636,405  75,368  99,883 
Other consumer 348,839  340,248  313,071  8,591  35,768 
Loans receivable 13,432,031  11,293,891  11,122,696  2,138,140  2,309,335 
Allowance for credit losses (172,665) (153,609) (158,243) (19,056) (14,422)
Loans receivable, net 13,259,366  11,140,282  10,964,453  2,119,084  2,294,913 
Other assets 1,873,580  1,305,970  1,378,961  567,610  494,619 
Total assets$25,940,645  21,314,019  18,504,206  4,626,626  7,436,439 


Excluding the $1.623 billion of cash received from the Alta acquisition that was invested in the current quarter, total debt securities at December 31, 2021 increased $228 million, or 3 percent, during the current quarter and increased $3.220 billion, or 58 percent, from the prior year fourth quarter. The Company continues to selectively purchase debt securities with excess liquidity from the increase in core deposits and SBA forgiveness of PPP loans. Debt securities represented 40 percent of total assets at December 31, 2021 and September 30, 2021 compared to 30 percent of total assets at December 31, 2020.

The loan portfolio of $13.432 billion at December 31, 2021 increased $2.138 billion, or 19 percent, in the current quarter and increased $2.309 billion, or 21 percent, from the prior year end. Excluding the PPP loans and loans from the Alta acquisition, the loan portfolio increased $448 million, or 16 percent annualized, during the current quarter with the largest increase in commercial real estate which increased $315 million, or 18 percent annualized. Excluding the PPP loans and loans from the Alta acquisition, the loan portfolio increased $1.160 billion, or 11 percent, from the prior year end with the largest increase in commercial real estate loans which increased $912 million, or 14 percent.


Credit Quality Summary

 At or for the
Year ended		 At or for the
Nine Months ended		 At or for the
Year ended
(Dollars in thousands)Dec 31,
2021		 Sep 30,
2021		 Dec 31,
2020
Allowance for credit losses     
Balance at beginning of period$158,243  158,243  124,490 
Impact of adopting CECL —  —  3,720 
Acquisitions 371  —  49 
Provision for credit losses 16,380  (2,921) 37,637 
Charge-offs (11,594) (8,566) (13,808)
Recoveries 9,265  6,853  6,155 
Balance at end of period$172,665  153,609  158,243 
Provision for credit losses     
Loan portfolio$16,380  (2,921) 37,637 
Unfunded loan commitments 6,696  (1,959) 2,128 
Total provision for credit losses$23,076  (4,880) 39,765 
Other real estate owned$—  88  1,182 
Other foreclosed assets 18  18  562 
Accruing loans 90 days or more past due 17,141  5,172  1,725 
Non-accrual loans 50,532  45,901  31,964 
Total non-performing assets$67,691  51,179  35,433 
Non-performing assets as a percentage of subsidiary assets 0.26% 0.24% 0.19%
Allowance for credit losses as a percentage of non-performing loans 255% 301% 470%
Allowance for credit losses as a percentage of total loans 1.29% 1.36% 1.42%
Net charge-offs as a percentage of total loans 0.02% 0.02% 0.07%
Accruing loans 30-89 days past due$50,566  26,002  22,721 
Accruing troubled debt restructurings$34,591  36,666  42,003 
Non-accrual troubled debt restructurings$2,627  2,820  3,507 
U.S. government guarantees included in non-performing assets$4,028  4,116  3,011 


Non-performing assets of $67.7 million at December 31, 2021 increased $16.5 million, or 32 percent, over the prior quarter which was primarily attributable to the acquisition of Alta. Non-performing assets increased $32.3 million, or 91 percent, over the prior year fourth quarter primarily as a result of the Alta acquisition and a single credit relationship. Non-performing assets as a percentage of subsidiary assets at December 31, 2021 was 0.26 percent compared to 0.24 percent in the prior quarter and 0.19 percent in the prior year fourth quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $50.6 million at December 31, 2021 increased $24.6 million from the prior quarter with a large portion of the increase primarily isolated to a single credit relationship. Early stage delinquencies increased $27.8 million from the prior year fourth quarter. Early stage delinquencies as a percentage of loans at December 31, 2021 was 0.38 percent, which was an increase of 15 basis points from prior quarter and an 18 basis points increase from prior year fourth quarter.

The current quarter credit loss expense of $28.0 million included $18.1 million of provision for credit loss on loans and $4.2 million of provision for credit loss on unfunded loan commitments from the acquisition of Alta. The credit loss expense due to the acquisition of Altabank reflects the requirement to fully fund an allowance for credit losses on loans and unfunded commitments post-acquisition. Excluding the Alta acquisition, the current quarter credit loss expense was $5.7 million, including $1.2 million of credit loss from loans and $4.5 million of credit loss from unfunded loan commitments.

The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at December 31 2021 was 1.29 percent which was a 7 basis points decrease compared to the prior quarter and a 13 basis points decrease from the prior year fourth quarter. The decrease in the ACL as a percentage of total loans during the current year was driven by the improvement in the economic forecasts.


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

(Dollars in thousands)Provision for
Credit Losses
Loans		 Net Charge-Offs
(Recoveries)		 ACL
as a Percent
of Loans		 Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans		 Non-Performing
Assets to
Total Subsidiary
Assets
Fourth quarter 2021$19,301  $616  1.29% 0.38% 0.26%
Third quarter 2021 2,313   152  1.36% 0.23% 0.24%
Second quarter 2021 (5,723)  (725) 1.35% 0.11% 0.26%
First quarter 2021 489   2,286  1.39% 0.40% 0.19%
Fourth quarter 2020 (1,528)  4,781  1.42% 0.20% 0.19%
Third quarter 2020 2,869   826  1.42% 0.15% 0.25%
Second quarter 2020 13,552   1,233  1.42% 0.22% 0.27%
First quarter 2020 22,744   813  1.49% 0.41% 0.26%


Excluding the acquisition of Alta, the current quarter provision for credit loss expense for loans was $1.2 million which was a decrease of $1.1 million from the prior quarter provision for credit loss expense of $2.3 million and an increase of $2.8 million from the prior year fourth quarter provision for credit loss benefit of $1.5 million.

Net charge-offs for the current quarter were $616 thousand compared to $152 thousand for the prior quarter and $4.8 million from the same quarter last year. 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. 


PPP Loans

 Three Months ended Year ended
(Dollars in thousands)Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Dec 31, 2021 Dec 31, 2020
PPP interest income$8,660 12,894 10,328 45,405 38,180
Deferred compensation on originating PPP loans — — 1,522 6,735 8,850
Total PPP income impact$8,660 12,894 11,850 52,140 47,030


(Dollars in thousands)Dec 31, 2021 Sep 30, 2021 Dec 31, 2020
PPP Round 1 loans$32,348 56,048 909,173
PPP Round 2 loans 136,329 312,865 —
Total PPP loans 168,677 368,913 909,173
      
Net remaining fees - Round 1 269 485 17,605
Net remaining fees - Round 2 4,808 12,501 —
Total net remaining fees$5,077 12,986 17,605


The SBA Round 2 PPP program ended in early May 2021 after the available funds were fully drawn upon. During the first half of 2021, the Company originated $555 million of Round 2 PPP loans which generated $33.2 million of SBA deferred processing fees and $6.7 million of deferred compensation costs for total net deferred fees of $26.5 million.

During the current year, the SBA processing fees received on Round 2 averaged 5.99 percent which compared to the average of 3.75 percent received on Round 1 in the prior year. The increase in the fee percentage received on Round 2 was the result of an increase in the number of smaller loans which receive a higher percentage fee.

The Company received $201 million in PPP loan forgiveness during the current quarter and received $1.305 billion in 2021. As of December 31, 2021, the Company had $32.3 million remaining, or 2 percent of the $1.472 billion of Round 1 PPP loans originated in the prior year still to be forgiven and had $136 million remaining, or 25 percent of the $555 million of Round 2 PPP loans originated in the current year.

In the current quarter, the Company recognized $8.7 million of interest income (including deferred fees and costs) from the Round 1 and Round 2 PPP loans. The income recognized in the current quarter included $7.4 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of the PPP loans at December 31, 2021 were $5.1 million, which will be recognized into interest income over the remaining life of the loans or when the loans are forgiven in whole or in part by the SBA.

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


Liability Summary

       $ Change from
(Dollars in thousands)Dec 31,
2021		 Sep 30,
2021		 Dec 31,
2020		 Sep 30,
2021		 Dec 31,
2020
Deposits         
Non-interest bearing deposits$7,779,288 6,632,402 5,454,539 1,146,886  2,324,749 
NOW and DDA accounts 5,301,832 4,299,244 3,698,559 1,002,588  1,603,273 
Savings accounts 3,180,046 2,502,268 2,000,174 677,778  1,179,872 
Money market deposit accounts 4,014,128 3,123,425 2,627,336 890,703  1,386,792 
Certificate accounts 1,036,077 919,852 978,779 116,225  57,298 
Core deposits, total 21,311,371 17,477,191 14,759,387 3,834,180  6,551,984 
Wholesale deposits 25,878 26,123 38,142 (245) (12,264)
Deposits, total 21,337,249 17,503,314 14,797,529 3,833,935  6,539,720 
Repurchase agreements 1,020,794 1,040,939 1,004,583 (20,145) 16,211 
Other borrowed funds 44,094 33,671 33,068 10,423  11,026 
Subordinated debentures 132,620 132,580 139,959 40  (7,339)
Other liabilities 228,266 215,899 222,026 12,367  6,240 
Total liabilities$22,763,023 18,926,403 16,197,165 3,836,620  6,565,858 


Excluding the Alta acquisition, core deposits increased $560 million, or 13 percent annualized, from the prior quarter and increased $3.278 billion, or 22 percent, from the prior year fourth quarter. Non-interest bearing deposits of $7.779 billion as of December 31, 2021 organically increased $1.123 billion, or 21 percent, from the prior year fourth quarter. The unprecedented increase in deposits over the prior two years resulted from a number of factors including the PPP loan proceeds deposited by customers, federal stimulus deposits and the increase in customer savings. Non-interest bearing deposits were 37 percent of total core deposits at December 31, 2021 compared to 38 percent of total core deposits at September 30, 2021 and 37 percent at December 31, 2020.

The low levels of borrowings, including wholesale deposits and Federal Home Loan Bank (“FHLB”) advances, reflected the significant increase in core deposits which funded the asset growth.


Stockholders’ Equity Summary

       $ Change from
(Dollars in thousands, except per share data)Dec 31,
2021		 Sep 30,
2021		 Dec 31,
2020		 Sep 30,
2021		 Dec 31,
2020
Common equity$3,150,263  2,309,957  2,163,951  840,306  986,312 
Accumulated other comprehensive income 27,359  77,659  143,090  (50,300) (115,731)
Total stockholders’ equity 3,177,622  2,387,616  2,307,041  790,006  870,581 
Goodwill and core deposit intangible, net (1,037,652) (562,058) (569,522) (475,594) (468,130)
Tangible stockholders’ equity$2,139,970  1,825,558  1,737,519  314,412  402,451 
Stockholders’ equity to total assets 12.25% 11.20% 12.47%      
Tangible stockholders’ equity to total tangible assets 8.59% 8.80% 9.69%      
Book value per common share$28.71  25.00  24.18  3.71  4.53 
Tangible book value per common share$19.33  19.11  18.21  0.22  1.12 


Tangible stockholders’ equity of $2.140 billion at December 31, 2021 increased $314 million, or 17 percent, from the prior quarter and increased $402 million, or 23 percent, from the prior year fourth quarter which was the result of $840 million of Company common stock issued for the acquisition of Alta and earnings retention. The increase was partially offset by the increase in goodwill and core deposits associated with the Alta acquisition and a decrease in other comprehensive income. Tangible book value per common share of $19.33 at the current quarter end increased $0.22 per share, or 1 percent, from the prior quarter and increased $1.12 per share, or 6 percent, from a year ago.

Cash Dividends
On December 29, 2021, the Company’s Board of Directors declared a special cash dividend of $0.10 per share, the 18th special dividend the Company has declared. The special dividend was payable on January 20, 2022 to shareholders of record on January 11, 2022. On November 17, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.32 per share. The dividend was payable December 16, 2021 to shareholders of record on December 7, 2021. The dividend was the 147th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.


Operating Results for Three Months Ended December 31, 2021 
Compared to September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020

Income Summary

 Three Months ended
(Dollars in thousands)Dec 31,
2021		 Sep 30,
2021		 Jun 30,
2021		 Mar 31,
2021		 Dec 31,
2020
Net interest income         
Interest income$192,825   166,741  159,956  161,552  171,308 
Interest expense 5,203   4,128  4,487  4,740  5,550 
Total net interest income 187,622   162,613  155,469  156,812  165,758 
Non-interest income         
Service charges and other fees 17,576   15,154  13,795  12,792  13,713 
Miscellaneous loan fees and charges 3,745   2,592  2,923  2,778  2,293 
Gain on sale of loans 11,431   13,902  16,106  21,624  26,214 
(Loss) gain on sale of investments (693)  (168) (61) 284  124 
Other income 2,303   3,335  2,759  2,643  2,360 
Total non-interest income 34,362   34,815  35,522  40,121  44,704 
Total income 221,984   197,428  190,991  196,933  210,462 
Net interest margin (tax-equivalent) 3.21%  3.39% 3.44% 3.74% 4.03%
          
   $ Change from
(Dollars in thousands)  Sep 30,
2021		 Jun 30,
2021		 Mar 31,
2021		 Dec 31,
2020
Net interest income         
Interest income  $26,084  32,869  31,273  21,517 
Interest expense   1,075  716  463  (347)
Total net interest income   25,009  32,153  30,810  21,864 
Non-interest income         
Service charges and other fees   2,422  3,781  4,784  3,863 
Miscellaneous loan fees and charges   1,153  822  967  1,452 
Gain on sale of loans   (2,471) (4,675) (10,193) (14,783)
(Loss) gain on sale of investments   (525) (632) (977) (817)
Other income   (1,032) (456) (340) (57)
Total non-interest income   (453) (1,160) (5,759) (10,342)
Total income  $24,556  30,993  25,051  11,522 


Net Interest Income
The current quarter net interest income of $188 million increased $25.0 million, or 15 percent, over the prior quarter and increased $21.9 million, or 13 percent, from the prior year fourth quarter. The increases were primarily attributable to the $25.6 million of net interest income from Alta bank division. The current quarter interest income of $193 million increased $26.1 million, or 16 percent, compared to the prior quarter and increased $21.5 million, or 13 percent, over the prior year fourth quarter due to an increase in interest income from Alta bank division. The interest income (which included deferred fees and deferred costs) from the PPP loans was $8.7 million in the current quarter, $12.9 million in the prior quarter and $21.5 million in the prior year fourth quarter.

The current quarter interest expense of $5.2 million increased $1.1 million, or 26 percent, over the prior quarter primarily as a result of the the addition of the Alta bank division. Interest expense decreased $347 thousand, or 6 percent, over the prior year fourth quarter primarily the result of a decrease in deposit rates. The total cost of funding (including non-interest bearing deposits) was 9 basis points in the current and prior quarter compared to 14 basis points in the prior year fourth quarter which was driven by a decrease in rates in deposits and borrowings.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.21 percent compared to 3.39 percent in the prior quarter and 4.03 in the prior year fourth quarter. The core net interest margin, excluding 4 basis points of discount accretion, 2 basis points from non-accrual interest and 11 basis points increase from the PPP loans, was 3.04 percent compared to 3.17 in the prior quarter and 3.76 percent in the prior year fourth quarter. The core net interest margin decreased 13 basis points in the current quarter and decreased 72 basis points from the prior fourth quarter due to a decrease in earning asset yields. Earning asset yields have decreased due to the combined impact of the significant increase in the debt securities and the lower yields on both core loans and debt securities. Debt securities comprised 43.8 percent of the earning assets during the current quarter compared to 42.5 percent in the prior quarter and 31.8 percent in the prior year fourth quarter.

Non-interest Income
Non-interest income for the current quarter totaled $34.4 million which was a decrease of $453 thousand, or 1 percent, over the prior quarter and a decrease of $10.3 million, or 23 percent, over the same quarter last year. Gain on the sale of loans of $11.4 million for the current quarter decreased $2.5 million, or 18 percent, compared to the prior quarter and decreased $14.8 million, or 56 percent, from the prior year fourth quarter. The current quarter mortgage activity was lower than prior periods as a result reduced mortgage purchase and refinance activity after the historic highs the Company recently experienced.

Service charges and other fees increased $2.4 million from the prior quarter and was primarily the result of the addition of Alta bank division. Service charges and other fees increased $3.9 million from the prior year fourth quarter as a result of increased customer accounts and transaction activity and activity from Alta bank division.


Non-interest Expense Summary

 Three Months ended
(Dollars in thousands)Dec 31,
2021		 Sep 30,
2021		 Jun 30,
2021		 Mar 31,
2021		 Dec 31,
2020
Compensation and employee benefits$77,703  66,364  64,109  62,468 70,540 
Occupancy and equipment 11,259  9,412  9,208  9,515 9,728 
Advertising and promotions 3,436  3,236  2,906  2,371 2,797 
Data processing 7,468  5,135  5,661  5,206 5,211 
Other real estate owned and foreclosed assets 34  142  48  12 550 
Regulatory assessments and insurance 2,657  2,011  1,702  1,879 1,034 
Core deposit intangibles amortization 2,807  2,488  2,488  2,488 2,612 
Other expenses 28,683  15,320  13,960  12,646 18,715 
Total non-interest expense$134,047  104,108  100,082  96,585 111,187 
          
   $ Change from
(Dollars in thousands)  Sep 30,
2021		 Jun 30,
2021		 Mar 31,
2021		 Dec 31,
2020
Compensation and employee benefits  $11,339  13,594  15,235 7,163 
Occupancy and equipment   1,847  2,051  1,744 1,531 
Advertising and promotions   200  530  1,065 639 
Data processing   2,333  1,807  2,262 2,257 
Other real estate owned   (108) (14) 22 (516)
Regulatory assessments and insurance   646  955  778 1,623 
Core deposit intangibles amortization   319  319  319 195 
Other expenses   13,363  14,723  16,037 9,968 
Total non-interest expense  $29,939  33,965  37,462 22,860 


Total non-interest expense of $134 million for the current quarter increased $29.9 million, or 29 percent, over the prior quarter and increased $22.9 million, or 21 percent, over the prior year fourth quarter which was primarily driven by the acquisition of Alta. Excluding the Alta bank division and acquisition-related expenses, non-interest expense increased $5.3 million, or 5 percent, from the prior quarter and decreased $1.8 million, or 2 percent, from the prior year fourth quarter. The current quarter non-interest expense includes $17.0 million of expense from Alta bank division, $8.2 million of acquisition-related expenses, $806 thousand of increased compensation and employee benefits due to incremental overtime at several bank divisions, $1.1 million of expenses primarily due to branch upgrades, and $600 thousand of increased loan expense due to the loan growth.

Federal and State Income Tax Expense
Tax expense during the fourth quarter of 2021 was $9.3 million, a decrease of $7.7 million, or 45 percent, compared to the prior quarter and a decrease of $9.7 million, or 51 percent, from the prior year fourth quarter. The effective tax rate in the current quarter was 15.5 compared to 18.3 in the prior quarter and 18.8 percent in the prior year fourth quarter. The lower effective tax rate in the current quarter was attributable to lower taxable income.

Efficiency Ratio
The efficiency ratio was 57.68 percent in the current quarter compared to 50.17 percent in the prior quarter and 50.34 in the prior year fourth quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 54.09 percent in the current quarter compared to 49.94 percent in the prior quarter and 50.11 percent in the prior year fourth quarter. The increase in efficiency ratio was driven by the decrease in gain on sale of loans and the increase in non-interest expense.


Operating Results for Year Ended December 31, 2021
Compared to December 31, 2020

Income Summary

 Year ended    
(Dollars in thousands)Dec 31,
2021		 Dec 31,
2020		 $ Change % Change
Net interest income       
Interest income$681,074  $627,064  $54,010  9 %
Interest expense 18,558   27,315   (8,757) (32)%
Total net interest income 662,516   599,749   62,767  10 %
Non-interest income       
Service charges and other fees 59,317   52,503   6,814  13 %
Miscellaneous loan fees and charges 12,038   7,344   4,694  64 %
Gain on sale of loans 63,063   99,450   (36,387) (37)%
(Loss) gain on sale of investments (638)  1,139   (1,777) (156)%
Other income 11,040   12,431   (1,391) (11)%
Total non-interest income 144,820   172,867   (28,047) (16)%
Total Income$807,336  $772,616  $34,720  4 %
Net interest margin (tax-equivalent) 3.42%  4.09%    


Net Interest Income
Net-interest income of $663 million for 2021 increased $62.8 million, or 10 percent, over the same period in 2020 and included a $25.6 million increase from the acquisition of Alta. Interest income of $681 million for the current year increased $54.0 million, or 9 percent, from the prior year and was primarily attributable to a $26.9 million increase from the Alta bank division and a $22.5 million increase in interest income on debt securities. Interest income on debt securities increased $22.5 million, or 23 percent, over the prior year which resulted from the increased volume of debt securities. Interest expense of $18.6 million during 2021 decreased $8.8 million, or 32 percent over the prior year primarily as a result of a decrease in the cost of deposits. The total funding cost (including non-interest bearing deposits) for 2021 was 10 basis points, which decreased 9 basis points compared to 19 basis points in 2020.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 2021 was 3.42 percent, a 67 basis points decrease from the net interest margin of 4.09 percent for the same period in the prior year. The core net interest margin, excluding 4 basis points of discount accretion, 2 basis point of non-accrual interest and 12 basis points increase from the PPP loans, was 3.24 which was an 81 basis point decrease from the core margin of 4.05 percent in the prior year. Although the Company was successful in reducing the total cost of funding, it was not enough to outpace the lower yields on core loans and debt securities driven by the current interest rate environment and the shift in the earning asset mix to lower yielding debt securities.

Non-interest Income
Non-interest income of $145 million for 2021 decreased $28.0 million, or 16 percent, over the same period last year. Gain on the sale of loans of $63.1 million for 2021 decreased $36.4 million, or 37 percent, compared to the same period last year which was the result of the anticipated slowing of purchase and refinance activity after the historically high levels in the prior year.

Service charges and other fees of $59.3 million for 2021 increased $6.8 million, or 13 percent, from prior year as a result of additional fees from increased customer accounts and transaction activity and the acquisition of Alta. Miscellaneous loan fees and charges of $12.0 million increased $4.7 million, or 64 percent, driven by increases in loan servicing income and credit card interchange fees due to increased activity. Other income of $11.0 million decreased $1.4 million, or 11 percent, from the prior year.


Non-interest Expense Summary

 Year ended    
(Dollars in thousands)Dec 31,
2021		 Dec 31,
2020		 $ Change % Change
Compensation and employee benefits$270,644 $253,047 $17,597  7 %
Occupancy and equipment 39,394  37,673  1,721  5 %
Advertising and promotions 11,949  10,201  1,748  17 %
Data processing 23,470  21,132  2,338  11 %
Other real estate owned and foreclosed assets 236  923  (687) (74)%
Regulatory assessments and insurance 8,249  4,656  3,593  77 %
Core deposit intangibles amortization 10,271  10,370  (99) (1)%
Other expenses 70,609  66,809  3,800  6 %
Total non-interest expense$434,822 $404,811 $30,011  7 %


Total non-interest expense of $435 million for 2021 increased $30.0 million, or 7 percent, over the prior year same period. Excluding the Alta bank division and acquisition-related expenses, non-interest expense increased $11.0 million, or 3 percent, over the prior year. Included in the current year was $9.8 million of acquisition-related expenses and $17.0 million of expenses from the Alta bank division.

Compensation and employee benefits for 2021 increased $17.6 million, or 7 percent, from last year due to the increased number of employees from acquisitions and organic growth. Advertising and promotions for 2021 increased $1.7 million, or 17 percent, from the prior year. Data processing expense increased $2.3 million, or 11 percent, from the prior year primarily from the acquisition of Alta. Regulatory assessment and insurance for 2021 increased $3.6 million from the prior year as a result of organic growth, the State of Montana waiving the first semi-annual regulatory assessment of 2020 and Small Bank assessment credits applied by the FDIC in the first quarter of 2020. Other expenses of $70.6 million, increased $3.8 million, or 6 percent, from the prior year. Current year other expenses included acquisition-related expenses of $9.8 million compared to $7.8 million in the prior year.

Provision for Credit Losses
The provision for credit loss expense was $23.1 million for 2021 compared to $39.8 million in 2020. Excluding the impact from the Alta and State Bank of Arizona acquisitions, the current year provision for credit loss expense on unfunded loan commitments was $2.5 million compared to a credit loss expense of $2.1 million in the prior year. Excluding the impact from the acquisitions, the current year provision for credit loss benefit on loans was $1.7 million compared to a credit loss expense of $32.8 million in the prior year which was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the current year were $2.3 million compared to $7.7 million during the prior year.

Federal and State Income Tax Expense
Tax expense of $64.7 million in 2021 increased $3.0 million, or 5 percent, over the prior year same period. The effective tax rate for 2021 was 18.5 percent compared to 18.8 percent in the prior year same period.

Efficiency Ratio
The efficiency ratio was 51.35 percent for 2021 compared to 49.97 percent for the same period last year. Excluding acquisition-related expenses, the efficiency ratio was 50.16 in 2021 compared to 48.98 in 2020 and the increase was primarily driven by the reduction in gain on sale of loans. “The Bank divisions have worked diligently to control their expenses to achieve an efficiency ratio near 50 percent,” said Ron Copher, Chief Financial Officer.

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 management’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 words of similar meaning. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations in the forward-looking statements, including those set forth in this news release:

  • the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio;
  • changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability;
  • changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties;
  • legislative or regulatory changes, such as the those signaled by the Biden Administration, as well as increased banking and consumer protection regulation that adversely affect the Company’s business, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
  • ability to complete pending or prospective future acquisitions;
  • costs or difficulties related to the completion and integration of acquisitions;
  • the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
  • reduced demand for banking products and services;
  • the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
  • competition among financial institutions in the Company's markets may increase significantly;
  • the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
  • the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
  • consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
  • dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
  • material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
  • natural disasters, including fires, floods, earthquakes, and other unexpected events;
  • the Company’s success in managing risks involved in the foregoing; and
  • the effects of any reputational damage to the Company resulting from any of the foregoing.

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

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, January 28, 2022. The conference call will be accessible by telephone and webcast. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 3278859. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/48wx48iw. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 3278859 by February 4, 2022.

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).

CONTACT: Randall M. Chesler, CEO
(406) 751-4722
Ron J. Copher, CFO
(406) 751-7706


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition

(Dollars in thousands, except per share data)Dec 31,
2021		 Sep 30,
2021		 Dec 31,
2020
Assets     
Cash on hand and in banks$198,087  250,579  227,108 
Interest bearing cash deposits 239,599  98,309  406,034 
Cash and cash equivalents 437,686  348,888  633,142 
Debt securities, available-for-sale 9,170,849  7,390,580  5,337,814 
Debt securities, held-to-maturity 1,199,164  1,128,299  189,836 
Total debt securities 10,370,013  8,518,879  5,527,650 
Loans held for sale, at fair value 60,797  94,138  166,572 
Loans receivable 13,432,031  11,293,891  11,122,696 
Allowance for credit losses (172,665) (153,609) (158,243)
Loans receivable, net 13,259,366  11,140,282  10,964,453 
Premises and equipment, net 372,597  316,191  325,335 
Other real estate owned and foreclosed assets 18  106  1,744 
Accrued interest receivable 76,673  79,699  75,497 
Deferred tax asset 27,693  —  — 
Core deposit intangible, net 52,259  48,045  55,509 
Goodwill 985,393  514,013  514,013 
Non-marketable equity securities 10,020  10,021  10,023 
Bank-owned life insurance 167,671  123,729  123,763 
Other assets 120,459  120,028  106,505 
Total assets$25,940,645  21,314,019  18,504,206 
Liabilities     
Non-interest bearing deposits$7,779,288  6,632,402  5,454,539 
Interest bearing deposits 13,557,961  10,870,912  9,342,990 
Securities sold under agreements to repurchase 1,020,794  1,040,939  1,004,583 
Other borrowed funds 44,094  33,671  33,068 
Subordinated debentures 132,620  132,580  139,959 
Accrued interest payable 2,409  2,437  3,305 
Deferred tax liability —  1,815  23,860 
Other liabilities 225,857  211,647  194,861 
Total liabilities 22,763,023  18,926,403  16,197,165 
Commitments and Contingent Liabilities     
Stockholders’ Equity     
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding —  —  — 
Common stock, $0.01 par value per share, 117,187,500 shares authorized 1,107  955  954 
Paid-in capital 2,338,814  1,497,939  1,495,053 
Retained earnings - substantially restricted 810,342  811,063  667,944 
Accumulated other comprehensive income 27,359  77,659  143,090 
Total stockholders’ equity 3,177,622  2,387,616  2,307,041 
Total liabilities and stockholders’ equity$25,940,645  21,314,019  18,504,206 


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

 Three Months ended Year ended
(Dollars in thousands, except per share data)Dec 31,
2021		 Sep 30,
2021		 Dec 31,
2020		 Dec 31,
2021		 Dec 31,
2020
Interest Income         
Debt securities$35,711  30,352  27,388  122,099  99,616
Residential real estate loans 13,728  9,885  11,176  43,300  46,392
Commercial loans 131,158  115,533  121,956  471,061  436,497
Consumer and other loans 12,228  10,971  10,788  44,614  44,559
Total interest income 192,825  166,741  171,308  681,074  627,064
Interest Expense         
Deposits 3,708  2,609  3,500  12,135  17,620
Securities sold under agreements to repurchase 467  496  818  2,303  3,601
Federal Home Loan Bank advances —  —  49  —  733
Other borrowed funds 184  178  173  713  646
Subordinated debentures 844  845  1,010  3,407  4,715
Total interest expense 5,203  4,128  5,550  18,558  27,315
Net Interest Income 187,622  162,613  165,758  662,516  599,749
Provision for credit losses 27,956  725  (1,535) 23,076  39,765
Net interest income after provision for credit losses 159,666  161,888  167,293  639,440  559,984
Non-Interest Income         
Service charges and other fees 17,576  15,154  13,713  59,317  52,503
Miscellaneous loan fees and charges 3,745  2,592  2,293  12,038  7,344
Gain on sale of loans 11,431  13,902  26,214  63,063  99,450
(Loss) gain on sale of debt securities (693) (168) 124  (638) 1,139
Other income 2,303  3,335  2,360  11,040  12,431
Total non-interest income 34,362  34,815  44,704  144,820  172,867
Non-Interest Expense         
Compensation and employee benefits 77,703  66,364  70,540  270,644  253,047
Occupancy and equipment 11,259  9,412  9,728  39,394  37,673
Advertising and promotions 3,436  3,236  2,797  11,949  10,201
Data processing 7,468  5,135  5,211  23,470  21,132
Other real estate owned and foreclosed assets 34  142  550  236  923
Regulatory assessments and insurance 2,657  2,011  1,034  8,249  4,656
Core deposit intangibles amortization 2,807  2,488  2,612  10,271  10,370
Other expenses 28,683  15,320  18,715  70,609  66,809
Total non-interest expense 134,047  104,108  111,187  434,822  404,811
Income Before Income Taxes 59,981  92,595  100,810  349,438  328,040
Federal and state income tax expense 9,272  16,976  18,950  64,681  61,640
Net Income$50,709  75,619  81,860  284,757  266,400


Glacier Bancorp, Inc.
Average Balance Sheets

 Three Months ended
 December 31, 2021 September 30, 2021
(Dollars in thousands)Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate		 Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate
Assets           
Residential real estate loans$1,104,232 $13,728 4.97% $817,150 $9,885 4.84%
Commercial loans 1 11,184,129  132,561 4.70%  9,468,440  116,963 4.90%
Consumer and other loans 1,082,341  12,228 4.48%  974,582  10,971 4.47%
Total loans 2 13,370,702  158,517 4.70%  11,260,172  137,819 4.86%
Tax-exempt debt securities 2 1,693,761  15,552 3.67%  1,548,447  14,711 3.80%
Taxable debt securities 4 8,709,938  23,555 1.08%  6,767,418  18,896 1.12%
Total earning assets 23,774,401  197,624 3.30%  19,576,037  171,426 3.47%
Goodwill and intangibles 1,031,002      563,257    
Non-earning assets 950,923      803,226    
Total assets$25,756,326     $20,942,520    
Liabilities           
Non-interest bearing deposits$7,955,888 $— —% $6,505,530 $— —%
NOW and DDA accounts 5,120,484  970 0.08%  4,261,648  597 0.06%
Savings accounts 3,133,654  346 0.04%  2,440,332  146 0.02%
Money market deposit accounts 3,883,818  1,374 0.14%  3,041,634  814 0.11%
Certificate accounts 1,051,787  1,004 0.38%  928,165  1,036 0.44%
Total core deposits 21,145,631  3,694 0.07%  17,177,309  2,593 0.06%
Wholesale deposits 5 26,104  14 0.21%  26,117  16 0.24%
Repurchase agreements 1,015,369  467 0.18%  988,283  495 0.20%
Subordinated debentures and other borrowed funds 167,545  1,028 2.43%  166,151  1,024 2.44%
Total funding liabilities 22,354,649  5,203 0.09%  18,357,860  4,128 0.09%
Other liabilities 199,207      182,573    
Total liabilities 22,553,856      18,540,433    
Stockholders’ Equity           
Common stock 1,107      955    
Paid-in capital 2,338,013      1,497,107    
Retained earnings 815,726      805,253    
Accumulated other comprehensive income 47,624      98,772    
Total stockholders’ equity 3,202,470      2,402,087    
Total liabilities and stockholders’ equity$25,756,326     $20,942,520    
Net interest income (tax-equivalent)  $192,421     $167,298  
Net interest spread (tax-equivalent)    3.21%     3.38%
Net interest margin (tax-equivalent)    3.21%     3.39%

______________________________

1 Includes tax effect of $1.4 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2021 and September 30, 2021, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.2 million and $3.0 million on tax-exempt debt securities income for the three months ended December 31, 2021 and September 30, 2021, respectively.
4 Includes tax effect of $225 thousand and $255 thousand on federal income tax credits for the three months ended December 31, 2021 and September 30, 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


Glacier Bancorp, Inc.
Average Balance Sheets (continued)

 Three Months ended
 December 31, 2021 December 31, 2020
(Dollars in thousands)Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate		 Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate
Assets           
Residential real estate loans$1,104,232 $13,728 4.97% $984,942 $11,176 4.54%
Commercial loans 1 11,184,129  132,561 4.70%  9,535,228  123,327 5.15%
Consumer and other loans 1,082,341  12,228 4.48%  951,379  10,788 4.51%
Total loans 2 13,370,702  158,517 4.70%  11,471,549  145,291 5.04%
Tax-exempt debt securities 3 1,693,761  15,552 3.67%  1,511,725  14,659 3.88%
Taxable debt securities 4 8,709,938  23,555 1.08%  3,838,896  15,957 1.66%
Total earning assets 23,774,401  197,624 3.30%  16,822,170  175,907 4.16%
Goodwill and intangibles 1,031,002      570,771    
Non-earning assets 950,923      853,518    
Total assets$25,756,326     $18,246,459    
Liabilities           
Non-interest bearing deposits$7,955,888 $— —% $5,498,744 $— —%
NOW and DDA accounts 5,120,484  970 0.08%  3,460,923  607 0.07%
Savings accounts 3,133,654  346 0.04%  1,935,476  162 0.03%
Money market deposit accounts 3,883,818  1,374 0.14%  2,635,653  1,052 0.16%
Certificate accounts 1,051,787  1,004 0.38%  984,100  1,629 0.66%
Total core deposits 21,145,631  3,694 0.07%  14,514,896  3,450 0.09%
Wholesale deposits 5 26,104  14 0.21%  100,329  50 0.20%
Repurchase agreements 1,015,369  467 0.18%  969,263  818 0.34%
FHLB advances —  — —%  6,540  49 2.93%
Subordinated debentures and other borrowed funds 167,545  1,028 2.43%  172,936  1,183 2.72%
Total funding liabilities 22,354,649  5,203 0.09%  15,763,964  5,550 0.14%
Other liabilities 199,207      199,771    
Total liabilities 22,553,856      15,963,735    
Stockholders’ Equity           
Common stock 1,107      954    
Paid-in capital 2,338,013      1,494,422    
Retained earnings 815,726      657,906    
Accumulated other comprehensive income 47,624      129,442    
Total stockholders’ equity 3,202,470      2,282,724    
Total liabilities and stockholders’ equity$25,756,326     $18,246,459    
Net interest income (tax-equivalent)  $192,421     $170,357  
Net interest spread (tax-equivalent)    3.21%     4.02%
Net interest margin (tax-equivalent)    3.21%     4.03%

______________________________

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 December 31, 2021 and 2020, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.2 million and $1.8 million on tax-exempt debt securities income for the three months ended December 31, 2021 and 2020, respectively.
4 Includes tax effect of $225 thousand and $276 thousand on federal income tax credits for the three months ended December 31, 2021 and 2020, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


Glacier Bancorp, Inc.
Average Balance Sheets (continued)

 Year ended
 December 31, 2021 December 31, 2020
(Dollars in thousands)Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate		 Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate
Assets           
Residential real estate loans$910,300 $43,300 4.76% $1,006,001 $46,392 4.61%
Commercial loans 1 9,900,056  476,678 4.81%  9,057,210  441,762 4.88%
Consumer and other loans 993,082  44,614 4.49%  948,379  44,559 4.70%
Total loans 2 11,803,438  564,592 4.78%  11,011,590  532,713 4.84%
Tax-exempt debt securities 3 1,584,313  59,713 3.77%  1,306,640  52,201 4.00%
Taxable debt securities 4 6,512,202  75,553 1.16%  2,746,855  59,027 2.15%
Total earning assets 19,899,953  699,858 3.52%  15,065,085  643,941 4.27%
Goodwill and intangibles 683,000      564,603    
Non-earning assets 850,742      784,075    
Total assets$21,433,695     $16,413,763    
Liabilities           
Non-interest bearing deposits$6,544,843 $— —% $4,772,386 $— —%
NOW and DDA accounts 4,325,071  2,737 0.06%  3,094,675  2,849 0.09%
Savings accounts 2,493,174  771 0.03%  1,737,272  742 0.04%
Money market deposit accounts 3,144,507  3,914 0.12%  2,356,508  5,077 0.22%
Certificate accounts 976,894  4,643 0.48%  986,126  8,568 0.87%
Total core deposits 17,484,489  12,065 0.07%  12,946,967  17,236 0.13%
Wholesale deposits 5 31,103  70 0.22%  78,283  384 0.49%
Repurchase agreements 994,968  2,302 0.23%  783,100  3,601 0.94%
FHLB advances —  — —%  79,278  733 0.91%
Subordinated debentures and other borrowed funds 166,386  4,121 2.48%  172,104  5,361 3.11%
Total funding liabilities 18,676,946  18,558 0.10%  14,059,732  27,315 0.19%
Other liabilities 186,068      162,079    
Total liabilities 18,863,014      14,221,811    
Stockholders’ Equity           
Common stock 993      949    
Paid-in capital 1,708,271      1,474,359    
Retained earnings 772,300      604,796    
Accumulated other comprehensive income 89,117      111,848    
Total stockholders’ equity 2,570,681      2,191,952    
Total liabilities and stockholders’ equity$21,433,695     $16,413,763    
Net interest income (tax-equivalent)  $681,300     $616,626  
Net interest spread (tax-equivalent)    3.42%     4.08%
Net interest margin (tax-equivalent)    3.42%     4.09%

______________________________

1 Includes tax effect of $5.6 million and $5.3 million on tax-exempt municipal loan and lease income for the year months ended December 31, 2021 and 2020, 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 $12.2 million and $10.5 million on tax-exempt debt securities income for the year months ended December 31, 2021 and 2020, respectively.
4 Includes tax effect of $990 thousand and $1,064 thousand on federal income tax credits for the year months ended December 31, 2021 and 2020, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification

 Loans Receivable, by Loan Type % Change from
(Dollars in thousands)Dec 31,
2021		 Sep 30,
2021		 Dec 31,
2020		 Sep 30,
2021		 Dec 31,
2020
Custom and owner occupied construction$263,758  $170,489  $157,529  55 % 67 %
Pre-sold and spec construction 257,568   188,668   148,845  37 % 73 %
Total residential construction 521,326   359,157   306,374  45 % 70 %
Land development 185,200   151,640   102,930  22 % 80 %
Consumer land or lots 173,305   143,977   123,747  20 % 40 %
Unimproved land 81,064   68,805   59,500  18 % 36 %
Developed lots for operative builders 41,840   33,487   30,449  25 % 37 %
Commercial lots 99,418   76,382   60,499  30 % 64 %
Other construction 762,970   562,223   555,375  36 % 37 %
Total land, lot, and other construction 1,343,797   1,036,514   932,500  30 % 44 %
Owner occupied 2,645,841   2,069,551   1,945,686  28 % 36 %
Non-owner occupied 3,056,658   2,561,777   2,290,512  19 % 33 %
Total commercial real estate 5,702,499   4,631,328   4,236,198  23 % 35 %
Commercial and industrial 1,463,022   1,407,353   1,850,197  4 % (21)%
Agriculture 751,185   748,548   721,490  — % 4 %
1st lien 1,393,267   1,159,265   1,228,867  20 % 13 %
Junior lien 34,830   36,942   41,641  (6)% (16)%
Total 1-4 family 1,428,097   1,196,207   1,270,508  19 % 12 %
Multifamily residential 545,001   373,022   391,895  46 % 39 %
Home equity lines of credit 761,990   709,828   657,626  7 % 16 %
Other consumer 207,513   198,763   190,186  4 % 9 %
Total consumer 969,503   908,591   847,812  7 % 14 %
States and political subdivisions 615,251   612,882   575,647  — % 7 %
Other 153,147   114,427   156,647  34 % (2)%
Total loans receivable, including
loans held for sale		 13,492,828   11,388,029   11,289,268  18 % 20 %
Less loans held for sale 1 (60,797)  (94,138)  (166,572) (35)% (64)%
Total loans receivable$13,432,031  $11,293,891  $11,122,696  19 % 21 %

______________________________

1 Loans held for sale are primarily 1st lien 1-4 family loans.


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification

 Non-performing Assets, by Loan Type Non-
Accrual
Loans		 Accruing
Loans 90
Days
or More Past
Due		 Other real
estate owned
and
foreclosed
assets
(Dollars in thousands)Dec 31,
2021		 Sep 30,
2021		 Dec 31,
2020		 Dec 31,
2021		 Dec 31,
2021		 Dec 31,
2021
Custom and owner occupied construction$237 240 247 237 — —
Land development 250 31 342 250 — —
Consumer land or lots 309 186 201 176 133 —
Unimproved land 124 166 294 124 — —
Commercial lots — — 368 — — —
Other construction 12,884 276 — — 12,884 —
Total land, lot and other construction 13,567 659 1,205 550 13,017 —
Owner occupied 3,918 3,323 6,725 3,918 — —
Non-owner occupied 6,063 2,089 4,796 5,848 215 —
Total commercial real estate 9,981 5,412 11,521 9,766 215 —
Commercial and Industrial 3,066 5,621 6,689 2,517 549 —
Agriculture 29,151 32,712 6,313 26,323 2,828 —
1st lien 2,870 3,178 5,353 2,612 258 —
Junior lien 136 166 301 136 — —
Total 1-4 family 3,006 3,344 5,654 2,748 258 —
Multifamily residential 6,548 — — 6,548 — —
Home equity lines of credit 1,563 2,393 2,939 1,522 41 —
Other consumer 460 539 572 321 121 18
Total consumer 2,023 2,932 3,511 1,843 162 18
Other 112 259 293 — 112 —
Total$67,691 51,179 35,433 50,532 17,141 18


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)

 Accruing 30-89 Days Delinquent Loans, by Loan Type % Change from
(Dollars in thousands)Dec 31,
2021		 Sep 30,
2021		 Dec 31,
2020		 Sep 30,
2021		  Dec 31,
2020		 
Custom and owner occupied construction$1,243 $892 $788 39 % 58 %
Pre-sold and spec construction 443  325  — 36 % n/m  
Total residential construction 1,686  1,217  788 39 % 114 %
Land development —  276  202 (100)% (100)%
Consumer land or lots 149  325  71 (54) % 110 %
Unimproved land 305  181  357 69 % (15) %
Developed lots for operative builders —  59  306 (100) % (100) %
Other construction 30,788  12,884  — 139 % n/m
Total land, lot and other construction 31,242  13,725  936 128 % 3,238 %
Owner occupied 1,739  1,933  3,432 (10) % (49) %
Non-owner occupied 1,558  443  149 252 % 946 %
Total commercial real estate 3,297  2,376  3,581 39 % (8)%
Commercial and industrial 4,732  1,581  1,814 199 % 161 %
Agriculture 459  1,032  1,553 (56)% (70)%
1st lien 2,197  350  6,677 528 % (67) %
Junior lien 87  167  55 (48) % 58 %
Total 1-4 family 2,284  517  6,732 342 % (66)%
Home equity lines of credit 1,994  3,023  2,840 (34) % (30) %
Other consumer 1,681  1,361  1,054 24 % 59 %
Total consumer 3,675  4,384  3,894 (16)% (6)%
States and political subdivisions 1,733  —  2,358 n/m
 (27)%
Other 1,458  1,170  1,065 25 % 37 %
Total$50,566 $26,002 $22,721 94 % 123 %

______________________________

n/m - not measurable


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)

 Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan Type		 Charge-Offs Recoveries
(Dollars in thousands)Dec 31,
2021		 Sep 30,
2021		 Dec 31,
2020		 Dec 31,
2021		 Dec 31,
2021
Custom and owner occupied construction$—  —  (9) — —
Pre-sold and spec construction (15) (12) (24) — 15
Total residential construction (15) (12) (33) — 15
Land development (233) (163) (106) — 233
Consumer land or lots (165) (164) (221) 3 168
Unimproved land (241) (241) (489) — 241
Commercial lots —  —  (55) — —
Total land, lot and other construction (639) (568) (871) 3 642
Owner occupied (423) (410) (168) 117 540
Non-owner occupied (357) (356) 3,030  148 505
Total commercial real estate (780) (766) 2,862  265 1,045
Commercial and industrial 41  (87) 1,533  988 947
Agriculture (20) —  337  12 32
1st lien (331) (250) 69  42 373
Junior lien (650) (511) (211) — 650
Total 1-4 family (981) (761) (142) 42 1,023
Multifamily residential (40) (40) (244) — 40
Home equity lines of credit (621) (601) 101  41 662
Other consumer 236  145  307  532 296
Total consumer (385) (456) 408  573 958
Other 5,148  4,403  3,803  9,711 4,563
Total$2,329  1,713  7,653  11,594 9,265

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