Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended December 31, 2023

| Source: Glacier Bancorp, Inc. Glacier Bancorp, Inc.

4th Quarter 2023 Highlights:

  • Net income was $54.3 million for the current quarter, an increase of $1.9 million, or 4 percent, from the prior quarter net income of $52.4 million. Net income for the current quarter decreased $25.4 million, or 32 percent, from the prior year fourth quarter net income of $79.7 million, which was primarily driven by an increase in cost of funds.
  • Interest income of $273 million in the current quarter increased $8.6 million, or 3 percent, over the prior quarter interest income of $265 million. Interest income in the current quarter increased $48.4 million, or 22 percent, over the prior year fourth quarter.
  • The loan portfolio of $16.198 billion increased $63.0 million, or 2 percent annualized, during the current quarter.
  • The loan yield for the current quarter of 5.34 percent, increased 7 basis points, compared to 5.27 percent in the prior quarter and increased 51 basis points from the prior year fourth quarter loan yield of 4.83 percent.
  • Non-performing assets of $25.6 million at December 31, 2023 decreased $16.7 million, or 39 percent, over the prior quarter and decreased $7.1 million, or 22 percent, over the prior year end.
  • Stockholders’ equity of $3.020 billion increased $146 million, or 5 percent, during the current quarter and increased $177 million, or 6 percent, over the prior year end.
  • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 155 consecutive quarterly dividends and has increased the dividend 49 times.

Year 2023 Highlights

  • Net income for 2023 was $223 million, a decrease of $80.3 million, or 26 percent, from $303 million for the prior year. The decrease was primarily attributable to a $96.7 million decrease in net interest income driven by a significant increase in the cost of funds.
  • Interest income for the current year was $1.018 billion, an increase of $188 million, or 23 percent over the prior year interest income of $830 million.
  • The loan portfolio of $16.198 billion increased $951 million, or 6 percent, during the current year.
  • The loan yield was 5.19 percent for the current year, an increase of 53 basis points from the prior year loan yield of 4.66 percent.
  • Although the banking industry experienced a significant outflow of deposits, the Company’s core deposits and retail repurchase agreements decreased $108 million, or 50 basis points, from the prior year end.
  • Dividends declared in 2023 were $1.32 per share.
  • The Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank, a leading eastern Washington community bank headquartered in Spokane with total assets of $728 million as of December 31, 2023. The acquisition is expected to be completed January 31, 2024.

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,
2023		 Sep 30,
2023		 Jun 30,
2023		 Mar 31,
2023		 Dec 31,
2022		 Dec 31,
2023		 Dec 31,
2022
Operating results             
Net income$54,316  52,445  54,955  61,211  79,677  222,927  303,202 
Basic earnings per share$0.49  0.47  0.50  0.55  0.72  2.01  2.74 
Diluted earnings per share$0.49  0.47  0.50  0.55  0.72  2.01  2.74 
Dividends declared per share$0.33  0.33  0.33  0.33  0.33  1.32  1.32 
Market value per share             
Closing$41.32  28.50  31.17  42.01  49.42  41.32  49.42 
High$44.06  36.45  42.21  50.03  59.70  50.03  60.69 
Low$27.36  26.84  26.77  37.07  48.64  26.77  44.43 
Selected ratios and other data             
Number of common stock shares outstanding 110,888,942  110,879,365  110,873,887  110,868,713  110,777,780  110,888,942  110,777,780 
Average outstanding shares - basic 110,884,496  110,877,534  110,870,964  110,824,648  110,773,084  110,864,501  110,757,473 
Average outstanding shares - diluted 110,907,640  110,886,959  110,875,535  110,881,708  110,872,127  110,890,447  110,827,933 
Return on average assets (annualized) 0.77% 0.75% 0.81% 0.93% 1.19% 0.81% 1.15%
Return on average equity (annualized) 7.40% 7.12% 7.52% 8.54% 11.35% 7.64% 10.43%
Efficiency ratio 65.20% 63.31% 62.73% 60.39% 53.18% 62.85% 54.64%
Dividend payout 67.35% 70.21% 66.00% 60.00% 45.83% 65.67% 48.18%
Loan to deposit ratio 81.36% 79.25% 79.92% 77.09% 74.05% 81.36% 74.05%
Number of full time equivalent employees 3,294  3,314  3,369  3,390  3,390  3,294  3,390 
Number of locations 221  221  222  222  221  221  221 
Number of ATMs 275  274  274  263  265  275  265 
                      

KALISPELL, Mont., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $54.3 million for the current quarter, a decrease of $25.4 million, or 32 percent, from the $79.7 million of net income for the prior year fourth quarter. Diluted earnings per share for the current quarter was $0.49 per share, a decrease of 32 percent from the prior year fourth quarter diluted earnings per share of $0.72. The decrease in net income compared to the prior year fourth quarter was primarily due to the increase in funding costs, which outpaced the increase in interest income. Included in the current quarter non-interest expense was $6.0 million related to the Federal Deposit Insurance Corporation (“FDIC”) special assessment pursuant to a systemic risk determination. “The Glacier team wrapped up a strong fourth quarter and 2023 despite industry turmoil throughout the year. We are pleased to see many positive business trends developing in all our Divisions and we are well positioned to grow in 2024 and beyond” said Randy Chesler, President and Chief Executive Officer.

Net income for 2023 was $223 million, a decrease of $80.3 million, or 26 percent, from $303 million for the prior year, which was primarily driven by the increase in cost of funds outpacing the increase in interest income. Diluted earnings per share for 2023 was $2.01 per share, a decrease of 27 percent from the prior year diluted earnings per share of $2.74.

The Company’s previously announced agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, “Wheatland”), headquartered in Spokane, Washington, has received all required regulatory and shareholder approvals and is expected to be completed January 31, 2024. Wheatland has 14 branches in eastern Washington with total assets of $728 million, total loans of $469 million and total deposits of $623 million as of December 31, 2023.

Asset Summary

       $ Change from
(Dollars in thousands)Dec 31,
2023		 Sep 30,
2023		 Dec 31,
2022		 Sep 30,
2023		 Dec 31,
2022
Cash and cash equivalents$1,354,342  1,672,094  401,995  (317,752) 952,347 
Debt securities, available-for-sale 4,785,719  4,741,738  5,307,307  43,981  (521,588)
Debt securities, held-to-maturity 3,502,411  3,553,805  3,715,052  (51,394) (212,641)
Total debt securities 8,288,130  8,295,543  9,022,359  (7,413) (734,229)
Loans receivable         
Residential real estate 1,704,544  1,653,777  1,446,008  50,767  258,536 
Commercial real estate 10,303,306  10,292,446  9,797,047  10,860  506,259 
Other commercial 2,901,863  2,916,785  2,799,668  (14,922) 102,195 
Home equity 888,013  869,963  822,232  18,050  65,781 
Other consumer 400,356  402,075  381,857  (1,719) 18,499 
Loans receivable 16,198,082  16,135,046  15,246,812  63,036  951,270 
Allowance for credit losses (192,757) (192,271) (182,283) (486) (10,474)
Loans receivable, net 16,005,325  15,942,775  15,064,529  62,550  940,796 
Other assets 2,094,832  2,153,149  2,146,492  (58,317) (51,660)
Total assets$27,742,629  28,063,561  26,635,375  (320,932) 1,107,254 


The Company continued to maintain a strong cash position of $1.354 billion at December 31, 2023 which was an increase of $952 million over the prior year end. Total debt securities of $8.288 billion at December 31, 2023 decreased $7.4 million during the current quarter and decreased $734 million, or 8 percent, from the prior year end. Debt securities represented 30 percent of total assets at December 31, 2023, compared to 34 percent at December 31, 2022
   
The loan portfolio of $16.198 billion increased $63.0 million, or 2 percent annualized, during the current quarter with the largest dollar increase in residential real estate, which increased $50.8 million, or 3 percent. The loan portfolio increased $951 million, or 6 percent, from the prior year end with the largest dollar increase in commercial real estate loans, which increased $506 million, or 5 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,
2023		 Sep 30,
2023		 Dec 31,
2022
Allowance for credit losses     
Balance at beginning of period$182,283  182,283  172,665 
Provision for credit losses 20,790  16,609  17,433 
Charge-offs (15,095) (10,284) (14,970)
Recoveries 4,779  3,663  7,155 
Balance at end of period$192,757  192,271  182,283 
Provision for credit losses     
Loan portfolio$20,790  16,609  17,433 
Unfunded loan commitments (5,995) (4,827) 2,530 
Total provision for credit losses$14,795  11,782  19,963 
Other real estate owned$1,032  —  — 
Other foreclosed assets 471  48  32 
Accruing loans 90 days or more past due 3,312  3,855  1,559 
Non-accrual loans 20,816  38,380  31,151 
Total non-performing assets$25,631  42,283  32,742 
Non-performing assets as a percentage of subsidiary assets 0.09% 0.15% 0.12%
Allowance for credit losses as a percentage of non-performing loans 799% 455% 557%
Allowance for credit losses as a percentage of total loans 1.19% 1.19% 1.20%
Net charge-offs as a percentage of total loans 0.06% 0.04% 0.05%
Accruing loans 30-89 days past due$49,967  15,253  20,967 
U.S. government guarantees included in non-performing assets$1,503  1,057  2,312 


Non-performing assets of $25.6 million at December 31, 2023 decreased $16.7 million, or 39 percent, over the prior quarter and increased $7.1 million, or 22 percent, over the prior year end. Non-performing assets as a percentage of subsidiary assets at December 31, 2023 was 0.09 percent compared to 0.15 percent in the prior quarter and 0.12 percent in the prior year fourth quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $50.0 million at December 31, 2023 increased $34.7 million from the prior quarter and increased $29.0 million from prior year end. The current quarter increase included a $13 million loan that was brought current shortly after quarter end. The remaining early stage delinquencies was driven by seasonality and a few isolated loans. Early stage delinquencies as a percentage of loans at December 31, 2023 were 0.31 percent compared to 0.09 percent for the prior quarter end and 0.14 percent for the prior year end.

The current quarter credit loss expense of $3.0 million included $4.2 million of credit loss expense from loans and $1.2 million of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at December 31, 2023 was 1.19 percent compared to 1.20 percent in the prior year fourth 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
Fourth quarter 2023$4,181  $3,695 1.19% 0.31% 0.09%
Third quarter 2023 5,095   2,209 1.19% 0.09% 0.15%
Second quarter 2023 5,254   2,473 1.19% 0.16% 0.12%
First quarter 2023 6,260   1,939 1.20% 0.16% 0.12%
Fourth quarter 2022 6,060   1,968 1.20% 0.14% 0.12%
Third quarter 2022 8,382   3,154 1.20% 0.07% 0.13%
Second quarter 2022 (1,353)  1,843 1.20% 0.12% 0.16%
First quarter 2022 4,344   850 1.28% 0.12% 0.24%


Net charge-offs for the current quarter were $3.7 million compared to $2.2 million in the prior quarter and $2.0 million for the prior year fourth quarter. Net charge-offs of $3.7 million included $2.0 million in deposit overdraft net charge-offs and $1.7 million of net loan charge-offs.

The current quarter provision for credit loss expense for loans was $4.2 million, which was a decrease of $914 thousand from the prior quarter and a $1.9 million decrease from the prior year fourth quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

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

Liability Summary

       $ Change from
(Dollars in thousands)Dec 31,
2023		 Sep 30,
2023		 Dec 31,
2022		 Sep 30,
2023		 Dec 31,
2022
Deposits         
Non-interest bearing deposits$6,022,980 6,465,353 7,690,751 (442,373) (1,667,771)
NOW and DDA accounts 5,321,257 5,253,367 5,330,614 67,890  (9,357)
Savings accounts 2,833,887 2,872,362 3,200,321 (38,475) (366,434)
Money market deposit accounts 2,831,624 2,994,631 3,472,281 (163,007) (640,657)
Certificate accounts 2,915,393 2,742,017 880,589 173,376  2,034,804 
Core deposits, total 19,925,141 20,327,730 20,574,556 (402,589) (649,415)
Wholesale deposits 4,026 67,434 31,999 (63,408) (27,973)
Deposits, total 19,929,167 20,395,164 20,606,555 (465,997) (677,388)
Repurchase agreements 1,486,850 1,499,696 945,916 (12,846) 540,934 
Deposits and repurchase agreements, total 21,416,017 21,894,860 21,552,471 (478,843) (136,454)
Federal Home Loan Bank advances — — 1,800,000 —  (1,800,000)
FRB Bank Term Funding 2,740,000 2,740,000 — —  2,740,000 
Other borrowed funds 81,695 73,752 77,293 7,943  4,402 
Subordinated debentures 132,943 132,903 132,782 40  161 
Other liabilities 351,693 347,452 229,524 4,241  122,169 
Total liabilities$24,722,348 25,188,967 23,792,070 (466,619) 930,278 


During the current year, the Company experienced unprecedented fluctuations in the deposit balances and higher deposit rates, primarily due to the volatile interest rate environment. As a result of the Company’s focus on diversified deposits and repurchase agreements, core deposits and retail repurchase agreements decreased $108 million, or 50 basis points, from the prior year end. Total core deposits of $19.9 billion at the current quarter end decreased $403 million, or 2 percent, during the current quarter. Non-interest bearing deposits represented 30 percent of total core deposits at December 31, 2023 compared to 37 percent at December 31, 2022.

The Company’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. The Company has available liquidity of $15.0 billion including cash, borrowing capacity from the FHLB and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.

Stockholders’ Equity Summary

       $ Change from
(Dollars in thousands, except per share data)Dec 31,
2023		 Sep 30,
2023		 Dec 31,
2022		 Sep 30,
2023		 Dec 31,
2022
Common equity$3,394,394  3,374,961  3,312,097  19,433 82,297
Accumulated other comprehensive loss (374,113) (500,367) (468,792) 126,254 94,679
Total stockholders’ equity 3,020,281  2,874,594  2,843,305  145,687 176,976
Goodwill and core deposit intangible, net (1,017,263) (1,019,690) (1,026,994) 2,427 9,731
Tangible stockholders’ equity$2,003,018  1,854,904  1,816,311  148,114 186,707


Stockholders’ equity to total assets 10.89% 10.24% 10.67%    
Tangible stockholders’ equity to total tangible assets 7.49% 6.86% 7.09%    
Book value per common share$27.24  25.93  25.67  1.31 1.57
Tangible book value per common share$18.06  16.73  16.40  1.33 1.66


Tangible stockholders’ equity of $2.003 billion at December 31, 2023 increased $148 million, or 8 percent, compared to the prior quarter and was primarily due to a decrease in net unrealized losses (after-tax) on available-for-sale (“AFS”) debt securities during the current quarter. Tangible stockholders’ equity increased $187 million, or 10 percent, from December 31, 2022, which was primarily due to earnings retention and a decrease in net unrealized losses (after-tax) on AFS debt securities. Tangible book value per common share of $18.06 at the current quarter end increased $1.33 per share, or 8 percent, from the prior quarter. The tangible book value per common share increased $1.66 per share, or 10 percent, from the prior year end.

Cash Dividends
On November 15, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The current quarter dividend of $0.33 per share was consistent with the dividend declared in the prior quarter and the prior year fourth quarter. The dividend was payable December 14, 2023 to shareholders of record on December 5, 2023. The dividend was the Company’s 155th consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended December 31, 2023 
Compared to September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022

Income Summary

 Three Months ended
(Dollars in thousands)Dec 31,
2023		 Sep 30,
2023		 Jun 30,
2023		 Mar 31,
2023		 Dec 31,
2022
Net interest income         
Interest income$273,496   264,906  247,365  231,888  225,085 
Interest expense 107,040   97,852  75,385  45,696  21,026 
Total net interest income 166,456   167,054  171,980  186,192  204,059 
Non-interest income         
Service charges and other fees 19,115   19,304  18,967  17,771  18,734 
Miscellaneous loan fees and charges 4,484   4,322  4,162  3,967  3,905 
Gain on sale of loans 2,228   4,046  3,528  2,400  2,175 
Gain (loss) on sale of securities 1,712   (65) (23) (114) 519 
Other income 3,326   2,633  2,445  3,871  3,150 
Total non-interest income 30,865   30,240  29,079  27,895  28,483 
Total income$197,321   197,294  201,059  214,087  232,542 
Net interest margin (tax-equivalent) 2.56%  2.58% 2.74% 3.08% 3.30%
          
   $ Change from
(Dollars in thousands)  Sep 30,
2023		 Jun 30,
2023		 Mar 31,
2023		 Dec 31,
2022
Net interest income         
Interest income  $8,590  26,131  41,608  48,411 
Interest expense   9,188  31,655  61,344  86,014 
Total net interest income   (598) (5,524) (19,736) (37,603)
Non-interest income         
Service charges and other fees   (189) 148  1,344  381 
Miscellaneous loan fees and charges   162  322  517  579 
Gain on sale of loans   (1,818) (1,300) (172) 53 
Gain (loss) on sale of securities   1,777  1,735  1,826  1,193 
Other income   693  881  (545) 176 
Total non-interest income   625  1,786  2,970  2,382 
Total income  $27  (3,738) (16,766) (35,221)


Net Interest Income
The current quarter interest income of $273 million increased $8.6 million, or 3 percent, over the prior quarter and was driven primarily by the increase in the loan yields and an increase in average balances of the loan portfolio and interest-bearing cash. The current quarter interest income increased $48.4 million, or 22 percent, over the prior year fourth quarter and was principally due to loan growth and increased loan yields. The loan yield of 5.34 percent in the current quarter increased 7 basis points from the prior quarter loan yield of 5.27 percent and increased 51 basis points from the prior year fourth quarter loan yield of 4.83 percent.

The current quarter interest expense of $107 million increased $9.2 million, or 9 percent, over the prior quarter and increased $86.0 million, or 409 percent, over the prior year fourth quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 1.24 percent for the current quarter compared to 1.03 percent in the prior quarter and 0.08 percent for the prior year fourth quarter. The total cost of funding (including non-interest bearing deposits) was 1.72 percent in the current quarter compared to 1.58 percent in the prior quarter and 0.35 percent in the prior year fourth quarter, which was the result of the increased deposit and borrowing rates.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.56 percent compared to 2.58 percent in the prior quarter and 3.30 percent in the prior year fourth quarter. Although the net interest margin has been negatively impacted by the increase in interest rates during the current year, the Company continued to experience a slower pace in the decline in the net interest margin during the current quarter. The current quarter decrease in net interest margin was 2 basis points compared to a decrease of 16 basis points during the prior quarter.

Non-interest Income
Non-interest income for the current quarter totaled $30.9 million, which was an increase of $625 thousand, or 2 percent, over the prior quarter. Gain on the sale of residential loans of $2.2 million for the current quarter decreased $1.8 million, or 45 percent, compared to the prior quarter and increased $53 thousand, or 2 percent, from the prior year fourth quarter. Included in the current quarter gain on sale of securities was $1.7 million of gain on the sale of all of the Company’s Visa class B shares.

Non-interest Expense Summary

 Three Months ended
(Dollars in thousands)Dec 31,
2023		 Sep 30,
2023		 Jun 30,
2023		 Mar 31,
2023		 Dec 31,
2022
Compensation and employee benefits$71,420  77,387  78,764  81,477  79,814 
Occupancy and equipment 10,533  10,553  10,827  11,665  10,734 
Advertising and promotions 3,410  4,052  3,733  4,235  3,558 
Data processing 8,511  8,730  8,402  8,109  8,079 
Other real estate owned and foreclosed assets 78  15  14  12  5 
Regulatory assessments and insurance 12,435  6,060  5,314  4,903  3,425 
Core deposit intangibles amortization 2,427  2,428  2,427  2,449  2,664 
Other expenses 23,382  20,351  21,123  22,132  20,700 
Total non-interest expense$132,196  129,576  130,604  134,982  128,979 
          
   $ Change from
(Dollars in thousands)  Sep 30,
2023		 Jun 30,
2023		 Mar 31,
2023		 Dec 31,
2022
Compensation and employee benefits  $(5,967) (7,344) (10,057) (8,394)
Occupancy and equipment   (20) (294) (1,132) (201)
Advertising and promotions   (642) (323) (825) (148)
Data processing   (219) 109  402  432 
Other real estate owned and foreclosed assets   63  64  66  73 
Regulatory assessments and insurance   6,375  7,121  7,532  9,010 
Core deposit intangibles amortization   (1) —  (22) (237)
Other expenses   3,031  2,259  1,250  2,682 
Total non-interest expense  $2,620  1,592  (2,786) 3,217 


Total non-interest expense of $132 million for the current quarter increased $2.6 million, or 2 percent, over the prior quarter and increased $3.2 million, or 2 percent, over the prior year fourth quarter. Compensation and employee benefits expense of $71.4 million for the current quarter decreased $6.0 million, or 8 percent, from the prior quarter and decreased $8.4 million, or 11 percent, over the prior year fourth quarter, which was driven primarily by a decrease in performance-related compensation including in real estate commissions. The Company has also benefited during the year from increased operating efficiencies and a decrease in staffing. Included in the current quarter regulatory assessment and insurance expense was a $6.0 million expense related to the FDIC special assessment pursuant to a systemic risk determination. Excluding the FDIC special assessment, the $6.4 million regulatory assessments and insurance expense in the current quarter increased $3.0 million, or 88 percent, over the prior year fourth quarter and was primarily due to the FDIC uniformly increasing all depository institutions premiums at the beginning of the current year. Other expense of $23.4 million, increased $3.0 million, or 15 percent, from the prior quarter and was driven by several miscellaneous category increases. Other expense for the current quarter increased $2.7 million, or 13 percent, from the prior year fourth quarter and was primarily attributable to a $2.5 million gain on the sale of a former branch building in the prior year fourth quarter. “The reduction in non-interest expense in the current quarter was primarily due to the reduction in accrued performance-based compensation. In addition, the Company continues to improve operating efficiencies while monitoring staffing levels,” said Ron Copher, Chief Financial Officer.

Federal and State Income Tax Expense
Tax expense during the fourth quarter of 2023 was $7.8 million, a decrease of $3.9 million, or 34 percent, compared to the prior quarter and a decrease of $10.0 million, or 56 percent, from the prior year fourth quarter. The effective tax rate in the current quarter was 12.6 percent compared to 18.3 percent in the prior quarter and 18.2 percent in the prior year fourth quarter. The current quarter decrease in tax expense and the resulting effective tax rate was the result of a combination of increased federal tax credits and a decrease in the blended state tax rate.

Efficiency Ratio
The efficiency ratio was 65.2 percent in the current quarter compared to 63.31 percent in the prior quarter and 53.18 percent in the prior year fourth quarter. The increase from the prior quarter was principally driven by the FDIC special assessment and the decrease in the gain on the sale of residential loans. The increase from the prior year fourth quarter was primarily attributable to the increase in interest expense, which outpaced the increase in interest income.

Operating Results for Year Ended December 31, 2023
Compared to December 31, 2022

Income Summary

 Year ended  
(Dollars in thousands)Dec 31,
2023		 Dec 31,
2022		 $ Change % Change
Net interest income       
Interest income$1,017,655  $829,640  $188,015  23%
Interest expense 325,973   41,261   284,712  690%
Total net interest income 691,682   788,379   (96,697) (12)%
Non-interest income       
Service charges and other fees 75,157   72,124   3,033  4%
Miscellaneous loan fees and charges 16,935   15,350   1,585  10%
Gain on sale of loans 12,202   20,032   (7,830) (39)%
Gain on sale of securities 1,510   620   890  144%
Other income 12,275   12,606   (331) (3)%
Total non-interest income 118,079   120,732   (2,653) (2)%
Total Income$809,761  $909,111  $(99,350) (11)%
Net interest margin (tax-equivalent) 2.73%  3.27%    


Net Interest Income
Net-interest income of $692 million for 2023 decreased $96.7 million, or 12 percent, over 2022 and was primarily driven by increased interest expense. Interest income of $1.018 billion for 2023 increased $188 million, or 23 percent, from the prior year and was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The loan yield was 5.19 percent for 2023, an increase of 53 basis points from the prior year loan yield of 4.66 percent.

Interest expense of $326 million for 2023 increased $285 million, or 690 percent, over the same period in the prior year and was the result of increased borrowings and higher interest rates on borrowings and deposits. Core deposit cost (including non-interest bearing deposits) was 0.77 percent for 2023 compared to 0.07 percent for the prior year. The total funding cost (including non-interest bearing deposits) for 2023 was 1.35 percent, which was an increase of 117 basis points over the prior year funding cost of 0.18 percent.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 2023 was 2.73 percent, a 54 basis points decrease from the net interest margin of 3.27 percent for the prior year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the Paycheck Protection Program loans, was 2.71 percent for 2023, which was a 49 basis points decrease from the core margin of 3.20 percent in the same period of the prior year.

Non-interest Income  
Non-interest income of $118 million for 2023 decreased $2.7 million, or 2 percent, over the same period last year and was primarily due to the decrease in gain on sale of residential loans, which was partially offset by the increase in service charges and other fees. Miscellaneous loan fees of $16.9 million increased $1.6 million for 2023, or 10 percent, which was primarily driven by increased credit card interchange fees due to increased activity. Gain on sale of residential loans of $12.2 million in 2023 decreased by $7.8 million, or 39 percent, over the prior year, primarily as result of the reduction in residential purchase and refinance activity as mortgage rates significantly increased during 2023.

Non-interest Expense Summary

 Year ended    
(Dollars in thousands)Dec 31,
2023		 Dec 31,
2022		 $ Change % Change
Compensation and employee benefits$309,048 $319,303 $(10,255)  (3)%
Occupancy and equipment 43,578  43,261  317  1%
Advertising and promotions 15,430  14,324  1,106  8%
Data processing 33,752  30,823  2,929  10%
Other real estate owned and foreclosed assets 119  77  42  55%
Regulatory assessments and insurance 28,712  12,904  15,808  123%
Core deposit intangibles amortization 9,731  10,658  (927)  (9)%
Other expenses 86,988  87,518  (530)  (1)%
Total non-interest expense$527,358 $518,868 $8,490  2%


Total non-interest expense of $527 million for 2023 increased $8.5 million, or 2 percent, over the same period in the prior year. Compensation and employee benefits expense of $309 million in 2023 decreased $10.3 million, or 3 percent, over the prior year and was driven by a decrease in accrued performance-related compensation and a decrease in real estate commissions. Regulatory assessments and insurance of $28.7 million for 2023 increased $15.8 million, or 123 percent, over the prior year and was primarily due to the $6.0 million FDIC special assessment and the FDIC uniformly increasing all depository institutions premiums beginning in 2023. Other expense of $87.0 million for 2023 decreased $530 thousand, or 1 percent, from the prior year and included changes in several miscellaneous categories. Acquisition-related expenses were $1.3 million in 2023 compared to $10.0 million in 2022.

Provision for Credit Losses

The provision for credit loss expense was $14.8 million for 2023, a decrease of $5.2 million, or 26 percent, over the same period in the prior year. The provision for credit loss expense for 2023 included provision for credit loss expense of $20.8 million on the loan portfolio and credit loss benefit of $6.0 million on the unfunded loan commitments. Net charge-offs during 2023 were $10.3 million compared to $7.8 million during 2022.

Federal and State Income Tax Expense
Tax expense of $44.7 million for 2023 decreased $22.4 million, or 33 percent, over the prior year. The effective tax rate for 2023 was 16.7 percent compared to 18.1 percent for the prior year. The decrease in tax expense and the resulting effective tax rate was the result of a combination of a decrease in the pre-tax income, an increase in federal tax credits and a decrease in the blended state tax rate.

Efficiency Ratio
The efficiency ratio was 62.85 percent for 2023 compared to 54.64 percent for 2022. The increase from the prior year was primarily attributable to the increase in interest expense in the current year that outpaced the increase in interest income.

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

  • risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
  • changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
  • legislative or regulatory changes, including increased FDIC insurance rates and assessments or increased banking and consumer protection regulations, that may adversely affect the Company’s business;
  • risks related to overall economic conditions, including the impact on the economy of a rising interest rate environment, inflationary pressures, and geopolitical instability, including the wars in Ukraine and the Middle East;
  • risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;
  • costs or difficulties related to the completion and integration of pending or future acquisitions;
  • impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
  • reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
  • deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company's ability to obtain and maintain customers;
  • changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
  • risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;
  • risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
  • material failure, potential interruption or breach in security of the Company’s systems or changes in technological which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
  • risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
  • success in managing risks involved in the foregoing; and
  • effects of any reputational damage to the Company resulting from any of the foregoing.

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

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, January 26, 2024. Please note that our conference call host no longer offers a general dial-in number. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BI418b19026885468085e5f5ca09a5f67e. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/2w5869im. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. (NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions located across its eight state Western U.S. footprint: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), North Cascades Bank (Chelan, WA), The Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), and Western Security Bank (Billings, MT).

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

(Dollars in thousands, except per share data)Dec 31,
2023		 Sep 30,
2023		 Dec 31,
2022
Assets     
Cash on hand and in banks$246,525  264,067  300,194 
Interest bearing cash deposits 1,107,817  1,408,027  101,801 
Cash and cash equivalents 1,354,342  1,672,094  401,995 
Debt securities, available-for-sale 4,785,719  4,741,738  5,307,307 
Debt securities, held-to-maturity 3,502,411  3,553,805  3,715,052 
Total debt securities 8,288,130  8,295,543  9,022,359 
Loans held for sale, at fair value 15,691  29,027  12,314 
Loans receivable 16,198,082  16,135,046  15,246,812 
Allowance for credit losses (192,757) (192,271) (182,283)
Loans receivable, net 16,005,325  15,942,775  15,064,529 
Premises and equipment, net 421,791  415,343  398,100 
Other real estate owned and foreclosed assets 1,503  48  32 
Accrued interest receivable 94,526  104,476  83,538 
Deferred tax asset 159,070  203,745  193,187 
Core deposit intangible, net 31,870  34,297  41,601 
Goodwill 985,393  985,393  985,393 
Non-marketable equity securities 12,755  11,330  82,015 
Bank-owned life insurance 171,101  170,175  169,068 
Other assets 201,132  199,315  181,244 
Total assets$27,742,629  28,063,561  26,635,375 
Liabilities     
Non-interest bearing deposits$6,022,980  6,465,353  7,690,751 
Interest bearing deposits 13,906,187  13,929,811  12,915,804 
Securities sold under agreements to repurchase 1,486,850  1,499,696  945,916 
FHLB advances —  —  1,800,000 
FRB Bank Term Funding 2,740,000  2,740,000  — 
Other borrowed funds 81,695  73,752  77,293 
Subordinated debentures 132,943  132,903  132,782 
Accrued interest payable 125,907  91,874  4,331 
Other liabilities 225,786  255,578  225,193 
Total liabilities 24,722,348  25,188,967  23,792,070 
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, 234,000,000 shares authorized 1,109  1,109  1,108 
Paid-in capital 2,350,104  2,348,305  2,344,005 
Retained earnings - substantially restricted 1,043,181  1,025,547  966,984 
Accumulated other comprehensive loss (374,113) (500,367) (468,792)
Total stockholders’ equity 3,020,281  2,874,594  2,843,305 
Total liabilities and stockholders’ equity$27,742,629  28,063,561  26,635,375 


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

 Three Months ended Year ended
(Dollars in thousands, except per share data)Dec 31,
2023		 Sep 30,
2023		 Dec 31,
2022		 Dec 31,
2023		 Dec 31,
2022
Interest Income         
Investment securities$57,233  53,397  43,818 201,930 169,035
Residential real estate loans 19,820  18,594  14,964 71,328 57,243
Commercial loans 175,957  173,437  150,462 669,663 548,969
Consumer and other loans 20,486  19,478  15,841 74,734 54,393
Total interest income 273,496  264,906  225,085 1,017,655 829,640
Interest Expense         
Deposits 63,484  54,697  4,642 162,426 14,526
Securities sold under agreements to repurchase 12,229  10,972  1,765 36,414 3,200
Federal Home Loan Bank advances —  —  12,689 26,910 17,317
FRB Bank Term Funding 30,228  30,229  — 93,388 —
Other borrowed funds (372) 489  464 1,056 1,329
Subordinated debentures 1,471  1,465  1,466 5,779 4,889
Total interest expense 107,040  97,852  21,026 325,973 41,261
Net Interest Income 166,456  167,054  204,059 691,682 788,379
Provision for credit losses 3,013  3,539  6,124 14,795 19,963
Net interest income after provision for credit losses 163,443  163,515  197,935 676,887 768,416
Non-Interest Income         
Service charges and other fees 19,115  19,304  18,734 75,157 72,124
Miscellaneous loan fees and charges 4,484  4,322  3,905 16,935 15,350
Gain on sale of loans 2,228  4,046  2,175 12,202 20,032
Gain (loss) on sale of securities 1,712  (65) 519 1,510 620
Other income 3,326  2,633  3,150 12,275 12,606
Total non-interest income 30,865  30,240  28,483 118,079 120,732
Non-Interest Expense         
Compensation and employee benefits 71,420  77,387  79,814 309,048 319,303
Occupancy and equipment 10,533  10,553  10,734 43,578 43,261
Advertising and promotions 3,410  4,052  3,558 15,430 14,324
Data processing 8,511  8,730  8,079 33,752 30,823
Other real estate owned and foreclosed assets 78  15  5 119 77
Regulatory assessments and insurance 12,435  6,060  3,425 28,712 12,904
Core deposit intangibles amortization 2,427  2,428  2,664 9,731 10,658
Other expenses 23,382  20,351  20,700 86,988 87,518
Total non-interest expense 132,196  129,576  128,979 527,358 518,868
Income Before Income Taxes 62,112  64,179  97,439 267,608 370,280
Federal and state income tax expense 7,796  11,734  17,762 44,681 67,078
Net Income$54,316  52,445  79,677 222,927 303,202


Glacier Bancorp, Inc.
Average Balance Sheets

 Three Months ended
 December 31, 2023 September 30, 2023
(Dollars in thousands)Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate		 Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate
Assets           
Residential real estate loans$1,700,598  $19,820 4.66% $1,649,947  $18,594 4.51%
Commercial loans 1 13,196,412   177,397 5.33%  13,120,479   174,822 5.29%
Consumer and other loans 1,279,626   20,486 6.35%  1,263,775   19,478 6.11%
Total loans 2 16,176,636   217,703 5.34%  16,034,201   212,894 5.27%
Tax-exempt debt securities 3 1,725,858   14,738 3.42%  1,732,227   14,486 3.34%
Taxable debt securities 4 8,466,825   44,665 2.11%  8,485,157   41,052 1.94%
Total earning assets 26,369,319   277,106 4.17%  26,251,585   268,432 4.06%
Goodwill and intangibles 1,018,423       1,020,868     
Non-earning assets 487,979       528,145     
Total assets$27,875,721      $27,800,598     
Liabilities           
Non-interest bearing deposits$6,262,801  $— —% $6,461,350  $— —%
NOW and DDA accounts 5,245,602   14,751 1.12%  5,231,741   12,906 0.98%
Savings accounts 2,843,788   4,848 0.68%  2,840,620   3,492 0.49%
Money market deposit accounts 2,911,054   13,600 1.85%  3,039,177   12,646 1.65%
Certificate accounts 2,872,192   29,563 4.08%  2,462,266   23,151 3.73%
Total core deposits 20,135,437   62,762 1.24%  20,035,154   52,195 1.03%
Wholesale deposits 5 53,841   722 5.32%  188,523   2,502 5.27%
Repurchase agreements 1,488,419   12,229 3.26%  1,401,765   10,972 3.11%
FHLB advances —   — —%  —   — —%
FRB Bank Term Funding 2,740,000   30,228 4.38%  2,740,000   30,229 4.38%
Subordinated debentures and other borrowed funds 211,570   1,099 2.06%  208,336   1,954 3.72%
Total funding liabilities 24,629,267   107,040 1.72%  24,573,778   97,852 1.58%
Other liabilities 332,740       302,564     
Total liabilities 24,962,007       24,876,342     
Stockholders’ Equity           
Common stock 1,109       1,109     
Paid-in capital 2,349,177       2,347,323     
Retained earnings 1,034,258       1,035,276     
Accumulated other comprehensive loss (470,830)      (459,452)    
Total stockholders’ equity 2,913,714       2,924,256     
Total liabilities and stockholders’ equity$27,875,721      $27,800,598     
Net interest income (tax-equivalent)  $170,066     $170,580  
Net interest spread (tax-equivalent)    2.45%     2.48%
Net interest margin (tax-equivalent)    2.56%     2.58%

______________________________

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, 2023 and September 30, 2023, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $2.0 million and $1.9 million on tax-exempt debt securities income for the three months ended December 31, 2023 and September 30, 2023, respectively.
4 Includes tax effect of $215 thousand and $215 thousand on federal income tax credits for the three months ended December 31, 2023 and September 30, 2023, 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, 2023 December 31, 2022
(Dollars in thousands)Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate		 Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate
Assets           
Residential real estate loans$1,700,598  $19,820 4.66% $1,424,550  $14,964 4.20%
Commercial loans 1 13,196,412   177,397 5.33%  12,419,414   152,169 4.86%
Consumer and other loans 1,279,626   20,486 6.35%  1,183,727   15,841 5.31%
Total loans 2 16,176,636   217,703 5.34%  15,027,691   182,974 4.83%
Tax-exempt debt securities 3 1,725,858   14,738 3.42%  1,960,007   17,877 3.65%
Taxable debt securities 4 8,466,825   44,665 2.11%  8,200,203   29,717 1.45%
Total earning assets 26,369,319   277,106 4.17%  25,187,901   230,568 3.63%
Goodwill and intangibles 1,018,423       1,028,277     
Non-earning assets 487,979       436,260     
Total assets$27,875,721      $26,652,438     
Liabilities           
Non-interest bearing deposits$6,262,801  $— —% $8,010,053  $— —%
NOW and DDA accounts 5,245,602   14,751 1.12%  5,388,062   1,077 0.08%
Savings accounts 2,843,788   4,848 0.68%  3,255,091   355 0.04%
Money market deposit accounts 2,911,054   13,600 1.85%  3,679,866   2,168 0.23%
Certificate accounts 2,872,192   29,563 4.08%  882,490   834 0.37%
Total core deposits 20,135,437   62,762 1.24%  21,215,562   4,434 0.08%
Wholesale deposits 5 53,841   722 5.32%  22,462   208 3.69%
Repurchase agreements 1,488,419   12,229 3.26%  873,819   1,765 0.80%
FHLB advances —   — —%  1,291,087   12,689 3.85%
FRB Bank Term Funding 2,740,000   30,228 4.38%  —   — —%
Subordinated debentures and other borrowed funds 211,570   1,099 2.06%  211,953   1,930 3.61%
Total funding liabilities 24,629,267   107,040 1.72%  23,614,883   21,026 0.35%
Other liabilities 332,740       252,298     
Total liabilities 24,962,007       23,867,181     
Stockholders’ Equity           
Common stock 1,109       1,108     
Paid-in capital 2,349,177       2,343,157     
Retained earnings 1,034,258       946,195     
Accumulated other comprehensive loss (470,830)      (505,203)    
Total stockholders’ equity 2,913,714       2,785,257     
Total liabilities and stockholders’ equity$27,875,721      $26,652,438     
Net interest income (tax-equivalent)  $170,066     $209,542  
Net interest spread (tax-equivalent)    2.45%     3.28%
Net interest margin (tax-equivalent)    2.56%     3.30%

______________________________

1 Includes tax effect of $1.4 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2023 and 2022, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $2.0 million and $3.6 million on tax-exempt debt securities income for the three months ended December 31, 2023 and 2022, respectively.
4 Includes tax effect of $215 thousand and $225 thousand on federal income tax credits for the three months ended December 31, 2023 and 2022, 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, 2023 December 31, 2022
(Dollars in thousands)Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate		 Average
Balance		 Interest &
Dividends		 Average
Yield/
Rate
Assets           
Residential real estate loans$1,603,600  $71,328 4.45% $1,284,029  $57,243 4.46%
Commercial loans 1 12,982,708   675,549 5.20%  11,902,971   555,244 4.66%
Consumer and other loans 1,247,114   74,734 5.99%  1,131,000   54,393 4.81%
Total loans 2 15,833,422   821,611 5.19%  14,318,000   666,880 4.66%
Tax-exempt debt securities 3 1,740,746   59,716 3.43%  1,916,731   70,438 3.67%
Taxable debt securities 4 8,297,203   152,003 1.83%  8,546,792   113,952 1.33%
Total earning assets 25,871,371   1,033,330 3.99%  24,781,523   851,270 3.44%
Goodwill and intangibles 1,022,052       1,032,263     
Non-earning assets 504,698       603,401     
Total assets$27,398,121      $26,417,187     
Liabilities           
Non-interest bearing deposits$6,642,339  $— —% $8,005,821  $— —%
NOW and DDA accounts 5,167,117   37,357 0.72%  5,387,277   3,439 0.06%
Savings accounts 2,908,584   9,918 0.34%  3,270,799   1,191 0.04%
Money market deposit accounts 3,166,914   42,254 1.33%  3,926,737   6,401 0.16%
Certificate accounts 1,949,206   64,176 3.29%  955,829   3,249 0.34%
Total core deposits 19,834,160   153,705 0.77%  21,546,463   14,280 0.07%
Wholesale deposits 5 173,231   8,721 5.03%  11,862   246 2.07%
Repurchase agreements 1,301,223   36,414 2.80%  920,955   3,200 0.35%
FHLB advances 551,986   26,910 4.81%  584,562   17,317 2.92%
FRB Bank Term Funding 2,133,658   93,388 4.38%  —   — —%
Subordinated debentures and other borrowed funds 209,567   6,835 3.26%  196,139   6,218 3.17%
Total funding liabilities 24,203,825   325,973 1.35%  23,259,981   41,261 0.18%
Other liabilities 275,359       249,832     
Total liabilities 24,479,184       23,509,813     
Stockholders’ Equity           
Common stock 1,109       1,107     
Paid-in capital 2,346,575       2,340,952     
Retained earnings 1,021,469       897,587     
Accumulated other comprehensive loss (450,216)      (332,272)    
Total stockholders’ equity 2,918,937       2,907,374     
Total liabilities and stockholders’ equity$27,398,121      $26,417,187     
Net interest income (tax-equivalent)  $707,357     $810,009  
Net interest spread (tax-equivalent)    2.64%     3.26%
Net interest margin (tax-equivalent)    2.73%     3.27%

______________________________

1 Includes tax effect of $5.9 million and $6.3 million on tax-exempt municipal loan and lease income for the year ended December 31, 2023 and 2022, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $8.9 million and $14.5 million on tax-exempt debt securities income for the year ended December 31, 2023 and 2022, respectively.
4 Includes tax effect of $859 thousand and $901 thousand on federal income tax credits for the year ended December 31, 2023 and 2022, 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,
2023		 Sep 30,
2023		 Dec 31,
2022		 Sep 30,
2023		 Dec 31,
2022
Custom and owner occupied construction$290,572  $306,106  $298,461  (5)% (3)%
Pre-sold and spec construction 236,596   287,048   297,895  (18)% (21)%
Total residential construction 527,168   593,154   596,356  (11)% (12)%
Land development 232,966   234,995   219,842  (1)% 6%
Consumer land or lots 187,545   184,685   206,604  2% (9)%
Unimproved land 87,739   87,089   104,662  1% (16)%
Developed lots for operative builders 56,142   62,485   60,987  (10)% (8)%
Commercial lots 87,185   84,194   93,952  4% (7)%
Other construction 900,547   982,384   938,406  (8)% (4)%
Total land, lot, and other construction 1,552,124   1,635,832   1,624,453  (5)% (4)%
Owner occupied 3,035,768   2,976,821   2,833,469  2% 7%
Non-owner occupied 3,742,916   3,765,266   3,531,673  (1)% 6%
Total commercial real estate 6,778,684   6,742,087   6,365,142  1% 6%
Commercial and industrial 1,363,479   1,363,198   1,377,888  —% (1)%
Agriculture 772,458   785,208   735,553  (2)% 5%
1st lien 2,127,989   2,054,497   1,808,502  4% 18%
Junior lien 47,230   47,490   40,445  (1)% 17%
Total 1-4 family 2,175,219   2,101,987   1,848,947  3% 18%
Multifamily residential 796,538   714,822   622,185  11% 28%
Home equity lines of credit 979,891   950,204   872,899  3% 12%
Other consumer 229,154   233,980   220,035  (2)% 4%
Total consumer 1,209,045   1,184,184   1,092,934  2% 11%
States and political subdivisions 834,947   833,618   797,656  —% 5%
Other 204,111   209,983   198,012  (3)% 3%
Total loans receivable, including loans held for sale 16,213,773   16,164,073   15,259,126  —% 6%
Less loans held for sale 1 (15,691)  (29,027)  (12,314) (46)% 27%
Total loans receivable$16,198,082  $16,135,046  $15,246,812  —% 6%

______________________________

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,
2023		 Sep 30,
2023		 Dec 31,
2022		 Dec 31,
2023		 Dec 31,
2023		 Dec 31,
2023
Custom and owner occupied construction$214 219 224 214 — —
Pre-sold and spec construction 763 763 389 — 763 —
Total residential construction 977 982 613 214 763 —
Land development 35 80 138 35 — —
Consumer land or lots 96 314 278 96 — —
Unimproved land — 36 78 — — —
Developed lots for operative builders 608 608 251 — 608 —
Commercial lots 47 188 — — 47 —
Other construction — 12,884 12,884 — — —
Total land, lot and other construction 786 14,110 13,629 131 655 —
Owner occupied 1,838 1,445 2,076 821 — 1,017
Non-owner occupied 11,016 15,105 805 10,757 259 —
Total commercial real estate 12,854 16,550 2,881 11,578 259 1,017
Commercial and Industrial 1,971 1,367 3,326 1,245 575 151
Agriculture 2,558 2,450 2,574 2,557 1 —
1st lien 2,664 2,766 2,678 2,533 116 15
Junior lien 180 363 166 144 36 —
Total 1-4 family 2,844 3,129 2,844 2,677 152 15
Multifamily residential 395 — 4,535 — 395 —
Home equity lines of credit 2,043 1,612 1,393 1,778 265 —
Other consumer 1,187 942 911 636 231 320
Total consumer 3,230 2,554 2,304 2,414 496 320
Other 16 1,141 36 — 16 —
Total$25,631 42,283 32,742 20,816 3,312 1,503


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,
2023		 Sep 30,
2023		 Dec 31,
2022		 Sep 30,
2023		 Dec 31,
2022
Custom and owner occupied construction$2,549 $— $1,082 n/m 136%
Pre-sold and spec construction 1,219  599  1,712 104% (29)%
Total residential construction 3,768  599  2,794 529% 35%
Land development 163  44  — 270% n/m
Consumer land or lots 624  528  442 18% 41%
Unimproved land —  87  120 (100)% (100)%
Developed lots for operative builders —  —  958 n/m (100)%
Commercial lots 2,159  1,245  47 73% 4,494%
Other construction —  —  209 n/m (100)%
Total land, lot and other construction 2,946  1,904  1,776 55% 66%
Owner occupied 2,222  652  3,478 241% (36)%
Non-owner occupied 14,471  213  496 6,694% 2,818%
Total commercial real estate 16,693  865  3,974 1,830% 320%
Commercial and industrial 12,905  2,946  3,439 338% 275%
Agriculture 594  604  1,367 (2)% (57)%
1st lien 3,768  1,006  2,174 275% 73%
Junior lien 1  355  190 (100)% (99)%
Total 1-4 family 3,769  1,361  2,364 177% 59%
Multifamily Residential —  —  492 n/m (100)%
Home equity lines of credit 4,518  3,638  1,182 24% 282%
Other consumer 3,264  1,821  1,824 79% 79%
Total consumer 7,782  5,459  3,006 43% 159%
States and political subdivisions —  —  28 n/m (100)%
Other 1,510  1,515  1,727 —% (13)%
Total$49,967 $15,253 $20,967 228% 138%

______________________________

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,
2023		 Sep 30,
2023		 Dec 31,
2022		 Dec 31,
2023		 Dec 31,
2023
Custom and owner occupied construction$—  —  17  — —
Pre-sold and spec construction (15) (12) (15) — 15
Total residential construction (15) (12) 2  — 15
Land development (135) (134) (34) — 135
Consumer land or lots (19) (14) (46) — 19
Other construction 889  —  —  889 —
Total land, lot and other construction 735  (148) (80) 889 154
Owner occupied (59) (104) 555  66 125
Non-owner occupied 799  500  (242) 807 8
Total commercial real estate 740  396  313  873 133
Commercial and industrial 364  (11) (70) 1,040 676
Agriculture —  —  (7) — —
1st lien 66  98  (109) 110 44
Junior lien 24  32  (302) 49 25
Total 1-4 family 90  130  (411) 159 69
Multifamily residential (136) —  136  — 136
Home equity lines of credit (6) 20  (91) 129 135
Other consumer 1,097  816  451  1,368 271
Total consumer 1,091  836  360  1,497 406
Other 7,447  5,430  7,572  10,637 3,190
Total$10,316  6,621  7,815  15,095 4,779


Visit our website at www.glacierbancorp.com

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