Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2022

Kalispell, Montana, UNITED STATES


1st Quarter 2022 Highlights:

  • The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, organically grew $407 million, or 12 percent annualized, in the current quarter.
  • Net income of $67.8 million for the current quarter, an increase of $17.1 million, or 34 percent, from the prior quarter net income of $50.7 million.
  • Non-interest expense of $130 million, decreased $3.7 million, or 3 percent, over the prior quarter non-interest expense of $134 million. Excluding the $6.2 million of acquisition-related expenses, non-interest expense was $124 million during the current quarter.
  • Net interest income, on a tax-equivalent basis, was $190 million in the current quarter. Excluding the PPP loans, net interest income was $187 million which increased $3.2 million, or 2 percent, over the prior quarter net interest income of $184 million.
  • Net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.20 percent compared to 3.21 percent in the prior quarter. The core net interest margin for the current quarter of 3.07 percent, increased 3 basis points from 3.04 percent in the prior quarter.
  • Core deposits increased $383 million, or 7 percent annualized, during the current quarter.
  • The Company completed the core system conversion of the Altabank division. This conversion was the largest and most complex in the Company’s history.
  • Declared a quarterly dividend of $0.33 per share, an increase of $0.01 per share or 3 percent over the prior quarter regular dividend. The Company has declared 148 consecutive quarterly dividends and has increased the dividend 49 times.

Financial Summary  

 At or for the Three Months ended
(Dollars in thousands, except per share and market data)Mar 31,
2022
 Dec 31,
2021
 Mar 31,
2021
Operating results     
Net income$67,795  50,709  80,802 
Basic earnings per share$0.61  0.46  0.85 
Diluted earnings per share$0.61  0.46  0.85 
Dividends declared per share1$0.33  0.42  0.31 
Market value per share     
Closing$50.28  56.70  57.08 
High$60.69  60.54  67.35 
Low$49.61  52.62  44.55 
Selected ratios and other data     
Number of common stock shares outstanding 110,763,316  110,687,533  95,501,819 
Average outstanding shares - basic 110,724,655  110,687,365  95,465,801 
Average outstanding shares - diluted 110,800,001  110,789,632  95,546,922 
Return on average assets (annualized) 1.06% 0.78% 1.73%
Return on average equity (annualized) 8.97% 6.28% 14.12%
Efficiency ratio 57.11% 57.68% 46.75%
Dividend payout ratio2 54.10% 91.30% 36.47%
Loan to deposit ratio 63.52% 63.24% 70.72%
Number of full time equivalent employees 3,439  3,436  2,994 
Number of locations 223  224  193 
Number of ATMs 273  273  250 

______________________
1 Includes a special dividend declared of $0.10 per share for the three months ended December 31, 2021.
2 Excluding the special dividend, the dividend payout ratio was 69.57 percent for the three months ended December 31, 2021.

KALISPELL, Mont., April 21, 2022 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $67.8 million for the current quarter, a decrease of $13.0 million, or 16 percent, from the $80.8 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.61 per share, a decrease of 28 percent from the prior year first quarter diluted earnings per share of $0.85. The $13.0 million decrease in first quarter earnings over the prior year first quarter was driven primarily by a $15.4 million decrease in the PPP related income, a $12.6 million decrease in gain on the sale of residential loans, an increase of $7.0 million of credit loss expense, and a $6.1 million increase in acquisition-related expenses. For the quarter, the Company experienced a $28.7 million increase, or 18 percent, in net interest income over the prior year first quarter. “The Glacier team started off the year with strong loan growth and earnings momentum,” said Randy Chesler, President and Chief Executive Officer. “While accelerating inflation and higher interest rates may create some economic headwinds, we remain optimistic about the year.”

Asset Summary

       $ Change from
(Dollars in thousands)Mar 31,
2022
 Dec 31,
2021
 Mar 31,
2021
 Dec 31,
2021
 Mar 31,
2021
Cash and cash equivalents$436,805  437,686  878,450  (881) (441,645)
Debt securities, available-for-sale 6,535,763  9,170,849  5,853,315  (2,635,086) 682,448 
Debt securities, held-to-maturity 3,576,941  1,199,164  588,751  2,377,777  2,988,190 
Total debt securities 10,112,704  10,370,013  6,442,066  (257,309) 3,670,638 
Loans receivable         
Residential real estate 1,125,648  1,051,883  745,097  73,765  380,551 
Commercial real estate 8,865,585  8,630,831  6,474,701  234,754  2,390,884 
Other commercial 2,661,048  2,664,190  3,100,584  (3,142) (439,536)
Home equity 715,963  736,288  625,369  (20,325) 90,594 
Other consumer 362,775  348,839  324,178  13,936  38,597 
Loans receivable 13,731,019  13,432,031  11,269,929  298,988  2,461,090 
Allowance for credit losses (176,159) (172,665) (156,446) (3,494) (19,713)
Loans receivable, net 13,554,860  13,259,366  11,113,483  295,494  2,441,377 
Other assets 1,995,955  1,873,580  1,336,553  122,375  659,402 
Total assets$26,100,324  25,940,645  19,770,552  159,679  6,329,772 


Total debt securities of $10.113 billion at March 31, 2022 decreased $257 million, or 2 percent, during the current quarter and increased $3.671 billion, or 57 percent, from the prior year first quarter. During 2020 and 2021, the Company experienced a sizeable increase in the investment portfolio as a result of the excess liquidity from the increase in core deposits. Debt securities represented 39 percent of total assets at March 31, 2022 compared to 40 percent at December 31, 2021 and 33 percent of total assets at March 31, 2021.

During the current quarter, the Company transferred $2.247 billion of available-for-sale (“AFS”) debt securities with a $55.7 million unrealized loss to held-to-maturity (“HTM”) designation after the Company determined it had both the intent and ability to hold such securities until maturity.

The loan portfolio of $13.731 billion at March 31, 2022 increased $299 million, or 2 percent, in the current quarter and increased $2.461 billion, or 22 percent, from the prior year first quarter. Excluding the PPP loans, the loan portfolio increased $407 million, or 12 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $235 million, or 11 percent annualized. Excluding the PPP loans and loans from the acquisition of Altabancorp and its Altabank subsidiary (“Alta”), the loan portfolio increased $1.486 billion, or 14 percent, from the prior year first quarter with the largest dollar increase in commercial real estate loans which increased $988 million, or 15 percent.

Credit Quality Summary

 At or for the
Three Months
ended
 At or for the
Year ended
 At or for the
Three Months
ended
(Dollars in thousands)Mar 31,
2022
 Dec 31,
2021
 Mar 31,
2021
Allowance for credit losses     
Balance at beginning of period$172,665  158,243  158,243 
Acquisitions   371   
Provision for credit losses 4,344  16,380  489 
Charge-offs (2,695) (11,594) (4,246)
Recoveries 1,845  9,265  1,960 
Balance at end of period$176,159  172,665  156,446 
Provision for credit losses     
Loan portfolio$4,344  16,380  489 
Unfunded loan commitments 2,687  6,696  (441)
Total provision for credit losses$7,031  23,076  48 
Other real estate owned$    1,839 
Other foreclosed assets 43  18  1,126 
Accruing loans 90 days or more past due 4,510  17,141  3,733 
Non-accrual loans 57,923  50,532  29,887 
Total non-performing assets$62,476  67,691  36,585 
Non-performing assets as a percentage of subsidiary assets 0.24% 0.26% 0.19%
Allowance for credit losses as a percentage of non-performing loans 282% 255% 465%
Allowance for credit losses as a percentage of total loans 1.28% 1.29% 1.39%
Net charge-offs as a percentage of total loans 0.01% 0.02% 0.02%
Accruing loans 30-89 days past due$16,080  50,566  44,616 
Accruing troubled debt restructurings$33,702  34,591  41,345 
Non-accrual troubled debt restructurings$2,501  2,627  4,702 
U.S. government guarantees included in non-performing assets$5,068  4,028  2,778 


Non-performing assets of $62.5 million at March 31, 2022 decreased $5.2 million, or 8 percent, over the prior quarter. Non-performing assets increased $25.9 million, or 71 percent, over the prior year first quarter primarily as a result of the Alta acquisition and two credit relationships. Non-performing assets as a percentage of subsidiary assets at March 31, 2022 was 0.24 percent compared to 0.26 percent in the prior quarter and 0.19 percent in the prior year first quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $16.1 million at March 31, 2022 decreased $34.5 million from the prior quarter with a large portion of the decrease primarily isolated to a single credit relationship. Early stage delinquencies decreased $28.5 million from the prior year first quarter. Early stage delinquencies as a percentage of loans at March 31, 2022 was 0.12 percent, which was a decrease of 26 basis points from prior quarter and an 28 basis points increase from prior year first quarter.

The current quarter credit loss expense of $7.0 million included $4.3 million of credit loss from loans and $2.7 million of credit loss from unfunded loan commitments.

The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at March 31 2022 was 1.28 percent which was a 1 basis point decrease compared to the prior quarter and an 11 basis points decrease from the prior year first quarter.

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

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


The current quarter provision for credit loss expense for loans was $4.3 million which was a decrease of $15.0 million from the prior quarter, which was driven by the prior quarter acquisition of Alta and the requirement to fully fund an allowance for credit loses on loans post-acquisition. Current quarter provision for credit loss expense increased $3.9 million from the prior year first quarter provision for credit loss expense of $489 thousand.

Net charge-offs for the current quarter were $850 thousand compared to $616 thousand for the prior quarter and $2.3 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

 At or for the Three Months ended
(Dollars in thousands)Mar 31, 2022 Dec 31, 2021
 Mar 31, 2021
PPP interest income$3,348  8,660  13,523 
Deferred compensation on originating PPP loans     5,213 
Total PPP income impact$3,348  8,660  18,736 
Total PPP Loans$60,680  168,677  975,791 
Net remaining fees 1,912  5,077  28,134 


The Company continued to actively work with its PPP loan customers to obtain forgiveness from the SBA during the current quarter. The Company received $108 million in PPP loan forgiveness during the current quarter. As of March 31, 2022, the Company had $60.7 million of PPP loans remaining.

In the current quarter, the Company recognized $3.3 million of interest income (including deferred fees and costs) from the PPP loans. The income recognized in the current quarter included $3.0 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 March 31, 2022 was $1.9 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)Mar 31,
2022
 Dec 31,
2021
  Mar 31,
2021
  Dec 31,
2021
 Mar 31,
2021
Deposits           
Non-interest bearing deposits$7,990,003  7,779,288  6,040,440  210,715  1,949,563 
NOW and DDA accounts 5,376,881  5,301,832  4,035,455  75,049  1,341,426 
Savings accounts 3,287,521  3,180,046  2,206,592  107,475  1,080,929 
Money market deposit accounts 4,044,655  4,014,128  2,817,708  30,527  1,226,947 
Certificate accounts 995,147  1,036,077  965,986  (40,930) 29,161 
Core deposits, total 21,694,207  21,311,371  16,066,181  382,836  5,628,026 
Wholesale deposits 3,688  25,878  38,143  (22,190) (34,455)
Deposits, total 21,697,895  21,337,249  16,104,324  360,646  5,593,571 
Repurchase agreements 958,479  1,020,794  996,878  (62,315) (38,399)
Federal Home Loan Bank advances 80,000      80,000  80,000 
Other borrowed funds 57,258  44,094  33,452  13,164  23,806 
Subordinated debentures 132,661  132,620  132,499  41  162 
Other liabilities 239,838  228,266  208,014  11,572  31,824 
Total liabilities$23,166,131  22,763,023  17,475,167  403,108  5,690,964 


Core deposits of $21.694 billion increased $383 million, or 7 percent annualized, during the current quarter and non-interest bearing deposits increased $211 million, or 11 percent annualized, during the current quarter. Excluding the Alta acquisition, core deposits increased $2.354 billion, or 15 percent, from the prior year first quarter. During 2020 and 2021, the Company experienced unprecedented increases in core deposits as a result of increased customer savings and federal stimulus. During the current quarter, the Company continued to experience a slowing of the deposit growth rates. Non-interest bearing deposits were 37 percent of total core deposits at March 31, 2022 and December 31, 2021 compared to 38 percent at March 31, 2021.

Stockholders’ Equity Summary

       $ Change from
(Dollars in thousands, except per share data)Mar 31,
2022
 Dec 31,
2021
 Mar 31,
2021
 Dec 31,
2021
 Mar 31,
2021
Common equity$3,182,002  3,150,263  2,215,465  31,739  966,537 
Accumulated other comprehensive (loss) income (247,809) 27,359  79,920  (275,168) (327,729)
Total stockholders’ equity 2,934,193  3,177,622  2,295,385  (243,429) 638,808 
Goodwill and core deposit intangible, net (1,034,987) (1,037,652) (567,034) 2,665  (467,953)
Tangible stockholders’ equity$1,899,206  2,139,970  1,728,351  (240,764) 170,855 


Stockholders’ equity to total assets 11.24% 12.25% 11.61%    
Tangible stockholders’ equity to total tangible assets 7.58% 8.59% 9.00%    
Book value per common share$26.49  28.71  24.03  (2.22) 2.46 
Tangible book value per common share$17.15  19.33  18.10  (2.18) (0.95)


Tangible stockholders’ equity of $1.899 billion at Mach 31, 2022 decreased $241 million, or 11 percent, from the prior quarter which was primarily driven by a decrease in the unrealized gain on the AFS debt securities during the current quarter which was driven by an increase in interest rates. Tangible stockholders’ equity at March 31, 2022 increased $171 million, or 10 percent, from the prior year first quarter which largely was the result of $840 million of Company common stock issued for the acquisition of Alta, despite the increase in goodwill and core deposit intangibles associated with the Alta acquisition and a decrease in the unrealized gain on the AFS debt securities. Tangible book value per common share of $17.15 at the current quarter end decreased $2.18 per share, or 11 percent, from the prior quarter and decreased $0.95 per share, or 5 percent, from a year ago primarily as a result of the decrease in unrealized gain on AFS debt securities.

Cash Dividends
On March 30, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share, an increase of $0.01 per share or 3 percent over the prior quarter regular dividend. The dividend was payable April 21, 2022 to shareholders of record on April 12, 2022. The dividend was the 148th 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 March 31, 2022 
Compared to December 31, 2021, and March 31, 2021

Income Summary

 Three Months ended $ Change from
(Dollars in thousands)Mar 31,
2022
 Dec 31,
2021
 Mar 31,
2021
 Dec 31,
2021
 Mar 31,
2021
Net interest income         
Interest income$190,516  192,825  161,552  (2,309) 28,964 
Interest expense 4,961  5,203  4,740  (242) 221 
Total net interest income 185,555  187,622  156,812  (2,067) 28,743 
Non-interest income         
Service charges and other fees 17,111  17,576  12,792  (465) 4,319 
Miscellaneous loan fees and charges 3,555  3,745  2,778  (190) 777 
Gain on sale of loans 9,015  11,431  21,624  (2,416) (12,609)
Gain (loss) on sale of investments 446  (693) 284  1,139  162 
Other income 3,436  2,303  2,643  1,133  793 
Total non-interest income 33,563  34,362  40,121  (799) (6,558)
Total income 219,118  221,984  196,933  (2,866) 22,185 
Net interest margin (tax-equivalent) 3.20% 3.21% 3.74%    


Net Interest Income

The current quarter net interest income of $186 million decreased $2.1 million, or 1 percent, compared to the prior quarter and increased $28.7 million, or 18 percent, from the prior year first quarter. The current quarter interest income of $191 million decreased $2.3 million, or 1 percent, over the prior quarter and was driven by the decrease of $5.3 million in interest income from the PPP loans. The current quarter interest income increased $29.0 million over the prior year first quarter primarily due to $30.2 million of interest income from Altabank division which more than offset the $10.2 million decrease in interest income from the PPP loans.

The current quarter interest expense of $5.0 million decreased $242 thousand, or 5 percent, over the prior quarter. Interest expense increased $221 thousand, or 5 percent, over the prior year first quarter primarily the result of an increase in deposit balances. The total cost of funding (including non-interest bearing deposits) was 9 basis points in the current and prior quarters compared to 12 basis points in the prior year first quarter which was driven by the decrease in rates on 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 3.20 percent compared to 3.21 percent in the prior quarter and 3.74 in the prior year first quarter. The core net interest margin, excluding 8 basis points of discount accretion, 1 basis point from non-accrual interest and 4 basis points increase from the PPP loans, was 3.07 percent compared to 3.04 in the prior quarter and 3.56 percent in the prior year first quarter. The core net interest margin increased 3 basis points in the current quarter as a result of increased investment yields that more than offset the decrease in the core loan yields. The core net interest margin decreased 49 basis points from the prior first quarter due to the decrease in core loan yields.

Non-interest Income
Non-interest income for the current quarter totaled $33.6 million which was a decrease of $799 thousand, or 2 percent, over the prior quarter and a decrease of $6.6 million, or 16 percent, over the same quarter last year. Gain on the sale of residential loans of $9.0 million for the current quarter decreased $2.4 million, or 21 percent, compared to the prior quarter and decreased $12.6 million, or 58 percent, from the prior year first 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.

Non-interest Expense Summary

 Three Months ended$ Change from
(Dollars in thousands)Mar 31,
2022
 Dec 31,
2021
 Mar 31,
2021
 Dec 31,
2021
 Mar 31,
2021
Compensation and employee benefits$79,074  77,703  62,468  1,371  16,606 
Occupancy and equipment 10,964  11,259  9,515  (295) 1,449 
Advertising and promotions 3,232  3,436  2,371  (204) 861 
Data processing 7,475  7,468  5,206  7  2,269 
Other real estate owned and foreclosed assets   34  12  (34) (12)
Regulatory assessments and insurance 3,055  2,657  1,879  398  1,176 
Core deposit intangibles amortization 2,664  2,807  2,488  (143) 176 
Other expenses 23,844  28,683  12,646  (4,839) 11,198 
Total non-interest expense$130,308  134,047  96,585  (3,739) 33,723 


Total non-interest expense of $130 million for the current quarter decreased $3.7 million, or 2.8 percent, over the prior quarter which was driven by a $2.0 million decrease in acquisition-related expenses during the current quarter. Acquisition-related expenses was $6.2 million in the current quarter compared to $8.2 million in the prior quarter and $104 thousand in the prior year first quarter. “Excluding current quarter acquisition-related expense, non-interest expense was $124 million. For the quarter, the Bank divisions have been excellent in controlling non-interest expenses,” said Ron Copher, Chief Financial Officer.

Total non-interest expense increased $33.7 million, or 35 percent, over the prior year first quarter which was primarily driven by the acquisition of Alta. Excluding $17.5 million of non-interest expense from the Altabank division, $5.2 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $4.9 million, or 5 percent, from the prior year first quarter. The increase includes $1.7 million from compensation and employee benefits driven by the increased number of employees, annual salary increases and $1.0 million increased expenses associated with equity investment in tax credits.

Federal and State Income Tax Expense
Tax expense during the first quarter of 2022 was $14.0 million, an increase of $4.7 million, or 51 percent, compared to the prior quarter and a decrease of $5.5 million, or 28 percent, from the prior year first quarter. The effective tax rate in the current quarter was 17.1 percent compared to 15.5 percent in the prior quarter with the increase driven by higher taxable income. The effective tax rate in the current quarter of 17.1 percent compared to 19.4 percent in the prior year first quarter with the decrease in the current quarter attributable to lower taxable income.

Efficiency Ratio
The efficiency ratio was 57.11 percent in the current quarter compared to 57.68 percent in the prior quarter and 46.75 in the prior year first quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 54.33 percent in the current quarter compared to 54.09 percent in the prior quarter and 46.70 percent in the prior year first quarter. The increase in the efficiency ratio from the prior year first quarter was driven by the decrease in gain on the sale of residential loans, the decrease in income from the PPP loans and the increase in 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 the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those set forth in this news release:

  • the risks associated with lending and potential adverse changes on the credit quality of loans in the Company’s portfolio;
  • changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin and overall profitability;
  • 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;
  • 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, April 22, 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 8258327. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/oshci2jh. 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 8258327 by April 29, 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).


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

(Dollars in thousands, except per share data)Mar 31,
2022
 Dec 31,
2021
 Mar 31,
2021
Assets     
Cash on hand and in banks$282,335  198,087  227,745 
Interest bearing cash deposits 154,470  239,599  650,705 
Cash and cash equivalents 436,805  437,686  878,450 
Debt securities, available-for-sale 6,535,763  9,170,849  5,853,315 
Debt securities, held-to-maturity 3,576,941  1,199,164  588,751 
Total debt securities 10,112,704  10,370,013  6,442,066 
Loans held for sale, at fair value 51,284  60,797  118,731 
Loans receivable 13,731,019  13,432,031  11,269,929 
Allowance for credit losses (176,159) (172,665) (156,446)
Loans receivable, net 13,554,860  13,259,366  11,113,483 
Premises and equipment, net 373,123  372,597  322,354 
Other real estate owned and foreclosed assets 43  18  2,965 
Accrued interest receivable 81,467  76,673  79,331 
Deferred tax asset 120,025  27,693   
Core deposit intangible, net 49,594  52,259  53,021 
Goodwill 985,393  985,393  514,013 
Non-marketable equity securities 13,217  10,020  10,022 
Bank-owned life insurance 167,298  167,671  122,843 
Other assets 154,511  120,459  113,273 
Total assets$26,100,324  25,940,645  19,770,552 
Liabilities     
Non-interest bearing deposits$7,990,003  7,779,288  6,040,440 
Interest bearing deposits 13,707,892  13,557,961  10,063,884 
Securities sold under agreements to repurchase 958,479  1,020,794  996,878 
FHLB advances 80,000     
Other borrowed funds 57,258  44,094  33,452 
Subordinated debentures 132,661  132,620  132,499 
Accrued interest payable 2,284  2,409  2,590 
Deferred tax liability     3,116 
Other liabilities 237,554  225,857  202,308 
Total liabilities 23,166,131  22,763,023  17,475,167 
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 1,108  1,107  955 
Paid-in capital 2,339,405  2,338,814  1,495,438 
Retained earnings - substantially restricted 841,489  810,342  719,072 
Accumulated other comprehensive (loss) income (247,809) 27,359  79,920 
Total stockholders’ equity 2,934,193  3,177,622  2,295,385 
Total liabilities and stockholders’ equity$26,100,324  25,940,645  19,770,552 
          


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

 Three Months ended
(Dollars in thousands, except per share data)Mar 31,
2022
 Dec 31,
2021
 Mar 31,
2021 
Interest Income      
Debt securities$38,654  35,711  27,306 
Residential real estate loans 15,515  13,728  10,146 
Commercial loans 124,556  131,158  113,541 
Consumer and other loans 11,791  12,228  10,559 
Total interest income 190,516  192,825  161,552 
Interest Expense      
Deposits 3,464  3,708  3,014 
Securities sold under agreements to
repurchase
 393  467  689 
Federal Home Loan Bank advances 12     
Other borrowed funds 220  184  174 
Subordinated debentures 872  844  863 
Total interest expense 4,961  5,203  4,740 
Net Interest Income 185,555  187,622  156,812 
Provision for credit losses 7,031  27,956  48 
Net interest income after provision for credit losses 178,524  159,666  156,764 
Non-Interest Income      
Service charges and other fees 17,111  17,576  12,792 
Miscellaneous loan fees and charges 3,555  3,745  2,778 
Gain on sale of loans 9,015  11,431  21,624 
Gain (loss) on sale of debt securities 446  (693) 284 
Other income 3,436  2,303  2,643 
Total non-interest income 33,563  34,362  40,121 
Non-Interest Expense      
Compensation and employee benefits 79,074  77,703  62,468 
Occupancy and equipment 10,964  11,259  9,515 
Advertising and promotions 3,232  3,436  2,371 
Data processing 7,475  7,468  5,206 
Other real estate owned and foreclosed
assets
   34  12 
Regulatory assessments and insurance 3,055  2,657  1,879 
Core deposit intangibles amortization 2,664  2,807  2,488 
Other expenses 23,844  28,683  12,646 
Total non-interest expense 130,308  134,047  96,585 
Income Before Income Taxes 81,779  59,981  100,300 
Federal and state income tax expense 13,984  9,272  19,498 
Net Income$67,795  50,709  80,802 
          


Glacier Bancorp, Inc.
Average Balance Sheets

 Three Months ended
 March 31, 2022 December 31, 2021
(Dollars in thousands)Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
 Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
Assets           
Residential real estate loans$1,140,224  $15,515  5.44% $1,104,232  $13,728  4.97%
Commercial loans 1 11,318,767   125,919  4.51%  11,184,129   132,561  4.70%
Consumer and other loans 1,075,102   11,791  4.45%  1,082,341   12,228  4.48%
Total loans 2 13,534,093   153,225  4.59%  13,370,702   158,517  4.70%
Tax-exempt debt securities 3 1,723,125   15,664  3.64%  1,693,761   15,552  3.67%
Taxable debt securities 4 8,883,211   26,465  1.19%  8,709,938   23,555  1.08%
Total earning assets 24,140,429   195,354  3.28%  23,774,401   197,624  3.30%
Goodwill and intangibles 1,036,315       1,031,002     
Non-earning assets 756,422       950,923     
Total assets$25,933,166      $25,756,326     
Liabilities           
Non-interest bearing deposits$7,859,706  $  % $7,955,888  $  %
NOW and DDA accounts 5,279,984   845  0.06%  5,120,484   970  0.08%
Savings accounts 3,246,512   332  0.04%  3,133,654   346  0.04%
Money market deposit accounts 4,030,795   1,381  0.14%  3,883,818   1,374  0.14%
Certificate accounts 1,019,595   897  0.36%  1,051,787   1,004  0.38%
Total core deposits 21,436,592   3,455  0.07%  21,145,631   3,694  0.07%
Wholesale deposits 5 17,191   9  0.22%  26,104   14  0.21%
Repurchase agreements 970,544   393  0.16%  1,015,369   467  0.18%
FHLB advances 15,000   12  0.33%       %
Subordinated debentures and other borrowed funds 179,725   1,092  2.46%  167,545   1,028  2.43%
Total funding liabilities 22,619,052   4,961  0.09%  22,354,649   5,203  0.09%
Other liabilities 249,316       199,207     
Total liabilities 22,868,368       22,553,856     
Stockholders’ Equity           
Common stock 1,107       1,107     
Paid-in capital 2,338,887       2,338,013     
Retained earnings 847,172       815,726     
Accumulated other comprehensive (loss) income (122,368)      47,624     
Total stockholders’ equity 3,064,798       3,202,470     
Total liabilities and stockholders’ equity$25,933,166      $25,756,326     
Net interest income (tax-equivalent)  $190,393      $192,421   
Net interest spread (tax-equivalent)    3.19%     3.21%
Net interest margin (tax-equivalent)    3.20%     3.21%

______________________________
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 March 31, 2022 and December 31, 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 $3.3 million and $3.2 million on tax-exempt debt securities income for the three months ended March 31, 2022 and December 31, 2021, respectively.
4 Includes tax effect of $225 thousand on federal income tax credits for the three months ended March 31, 2022 and December 31, 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
 March 31, 2022 March 31, 2021
(Dollars in thousands)Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
 Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
Assets           
Residential real estate loans$1,140,224  $15,515  5.44% $893,052  $10,146  4.54%
Commercial loans 1 11,318,767   125,919  4.51%  9,412,281   114,928  4.95%
Consumer and other loans 1,075,102   11,791  4.45%  949,736   10,559  4.51%
Total loans 2 13,534,093   153,225  4.59%  11,255,069   135,633  4.89%
Tax-exempt debt securities 3 1,723,125   15,664  3.64%  1,545,484   14,710  3.81%
Taxable debt securities 4 8,883,211   26,465  1.19%  4,713,936   15,851  1.35%
Total earning assets 24,140,429   195,354  3.28%  17,514,489   166,194  3.85%
Goodwill and intangibles 1,036,315       568,222     
Non-earning assets 756,422       843,305     
Total assets$25,933,166      $18,926,016     
Liabilities           
Non-interest bearing deposits$7,859,706  $  % $5,591,531  $  %
NOW and DDA accounts 5,279,984   845  0.06%  3,830,856   570  0.06%
Savings accounts 3,246,512   332  0.04%  2,092,517   138  0.03%
Money market deposit accounts 4,030,795   1,381  0.14%  2,719,267   865  0.13%
Certificate accounts 1,019,595   897  0.36%  971,584   1,422  0.59%
Total core deposits 21,436,592   3,455  0.07%  15,205,755   2,995  0.08%
Wholesale deposits 5 17,191   9  0.22%  38,076   19  0.20%
Repurchase agreements 970,544   393  0.16%  1,001,394   689  0.28%
FHLB advances 15,000   12  0.33%       %
Subordinated debentures and other borrowed funds 179,725   1,092  2.46%  165,830   1,037  2.54%
Total funding liabilities 22,619,052   4,961  0.09%  16,411,055   4,740  0.12%
Other liabilities 249,316       193,858     
Total liabilities 22,868,368       16,604,913     
Stockholders’ Equity           
Common stock 1,107       955     
Paid-in capital 2,338,887       1,495,138     
Retained earnings 847,172       710,137     
Accumulated other comprehensive (loss) income (122,368)      114,873     
Total stockholders’ equity 3,064,798       2,321,103     
Total liabilities and stockholders’ equity$25,933,166      $18,926,016     
Net interest income (tax-equivalent)  $190,393      $161,454   
Net interest spread (tax-equivalent)    3.19%     3.73%
Net interest margin (tax-equivalent)    3.20%     3.74%

______________________________
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 March 31, 2022 and 2021, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.3 million and $3.0 million on tax-exempt debt securities income for the three months ended March 31, 2022 and 2021, respectively.
4 Includes tax effect of $225 thousand and $255 thousand on federal income tax credits for the three months ended March 31, 2022 and 2021, 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)Mar 31,
2022
 Dec 31,
2021
 Mar 31,
2021
 Dec 31,
2021
 Mar 31,
2021
Custom and owner occupied construction$265,579  $263,758  $153,226  1% 73%
Pre-sold and spec construction 258,429   257,568   154,312  % 67%
Total residential construction 524,008   521,326   307,538  1% 70%
Land development 180,270   185,200   103,960  (3)% 73%
Consumer land or lots 184,217   173,305   133,409  6% 38%
Unimproved land 90,498   81,064   62,002  12% 46%
Developed lots for operative builders 61,276   41,840   27,310  46% 124%
Commercial lots 98,403   99,418   61,289  (1)% 61%
Other construction 833,218   762,970   604,326  9% 38%
Total land, lot, and other construction 1,447,882   1,343,797   992,296  8% 46%
Owner occupied 2,675,681   2,645,841   1,973,309  1% 36%
Non-owner occupied 3,190,519   3,056,658   2,372,644  4% 34%
Total commercial real estate 5,866,200   5,702,499   4,345,953  3% 35%
Commercial and industrial 1,378,500   1,463,022   1,883,438  (6)% (27)%
Agriculture 731,248   751,185   728,579  (3)% %
1st lien 1,466,279   1,393,267   1,130,339  5% 30%
Junior lien 33,438   34,830   35,230  (4)% (5)%
Total 1-4 family 1,499,717   1,428,097   1,165,569  5% 29%
Multifamily residential 545,483   545,001   380,172  % 43%
Home equity lines of credit 753,362   761,990   664,800  (1)% 13%
Other consumer 207,827   207,513   191,152  % 9%
Total consumer 961,189   969,503   855,952  (1)% 12%
States and political subdivisions 659,742   615,251   546,086  7% 21%
Other 168,334   153,147   183,077  10% (8)%
Total loans receivable, including loans held for sale 13,782,303   13,492,828   11,388,660  2% 21%
Less loans held for sale 1 (51,284)  (60,797)  (118,731) (16)% (57)%
Total loans receivable$13,731,019  $13,432,031  $11,269,929  2% 22%

______________________________
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)Mar 31,
2022
 Dec 31,
2021
  Mar 31,
2021
  Mar 31,
2022
  Mar 31,
2022
  Mar 31,
2022
 
Custom and owner occupied construction$233  237  246  233     
Land development 240  250  330  240     
Consumer land or lots 160  309  325  160     
Unimproved land 128  124  243  113  15   
Commercial lots     368       
Other construction 12,884  12,884    12,884     
Total land, lot and other construction 13,412  13,567  1,266  13,397  15   
Owner occupied 3,508  3,918  5,272  3,508     
Non-owner occupied 1,526  6,063  4,615  1,526     
Total commercial real estate 5,034  9,981  9,887  5,034     
Commercial and Industrial 4,252  3,066  6,100  3,366  886   
Agriculture 28,801  29,151  8,392  25,641  3,160   
1st lien 2,015  2,870  4,303  1,996  19   
Junior lien 301  136  290  111  190   
Total 1-4 family 2,316  3,006  4,593  2,107  209   
Multifamily residential 6,469  6,548    6,469     
Home equity lines of credit 1,416  1,563  3,614  1,321  95   
Other consumer 543  460  1,017  355  145  43 
Total consumer 1,959  2,023  4,631  1,676  240  43 
Other   112  1,470       
Total$62,476  67,691  36,585  57,923  4,510  43 
                   


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

 Accruing 30-89 Days Delinquent Loans,  by Loan Type % Change from
(Dollars in thousands)Mar 31,
2022
 Dec 31,
2021
 Mar 31,
2021
 Dec 31,
2021
 Mar 31,
2021
Custom and owner occupied construction$703  $1,243  $963  (43)% (27)%
Pre-sold and spec construction    443     (100)% n/m
Total residential construction 703   1,686   963  (58)% (27)%
Land development 317        n/m n/m
Consumer land or lots 28   149   215  (81)% (87)%
Unimproved land    305   334  (100)% (100)%
Developed lots for operative builders 142        n/m n/m
Commercial lots 54        n/m n/m
Other construction    30,788   1,520  (100)% (100)%
Total land, lot and other construction 541   31,242   2,069  (98)% (74)%
Owner occupied 3,778   1,739   1,784  117% 112%
Non-owner occupied 266   1,558   2,407  (83)% (89)%
Total commercial real estate 4,044   3,297   4,191  23% (4)%
Commercial and industrial 3,275   4,732   2,063  (31)% 59%
Agriculture 162   459   25,458  (65)% (99)%
1st lien 2,963   2,197   5,984  35% (50)%
Junior lien 78   87   18  (10)% 333%
Total 1-4 family 3,041   2,284   6,002  33% (49)%
Home equity lines of credit 1,315   1,994   1,223  (34)% 8%
Other consumer 1,097   1,681   519  (35)% 111%
Total consumer 2,412   3,675   1,742  (34)% 38%
States and political subdivisions 21   1,733   375  (99)% (94)%
Other 1,881   1,458   1,753  29% 7%
Total$16,080  $50,566  $44,616  (68)% (64)%

______________________________
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)Mar 31,
2022
 Dec 31,
2021
 Mar 31,
2021
 Mar 31,
2022
  Mar 31,
2022
 
Pre-sold and spec construction (4) (15) (7)   4 
Land development (21) (233) (75)   21 
Consumer land or lots (10) (165) (141)   10 
Unimproved land   (241) (21)    
Total land, lot and other construction (31) (639) (237)   31 
Owner occupied (386) (423) (54)   386 
Non-owner occupied (2) (357) (505)   2 
Total commercial real estate (388) (780) (559)   388 
Commercial and industrial (449) 41  80  33  482 
Agriculture (2) (20) (1)   2 
1st lien (9) (331) 5    9 
Junior lien (78) (650) (47)   78 
Total 1-4 family (87) (981) (42)   87 
Multifamily residential   (40)      
Home equity lines of credit (5) (621) 25    5 
Other consumer 55  236  46  122  67 
Total consumer 50  (385) 71  122  72 
Other 1,761  5,148  2,981  2,540  779 
Total$850  2,329  2,286  2,695  1,845 


Visit our website at
www.glacierbancorp.com


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