Glacier Bancorp, Inc. Announces Results For The Quarter And Period Ended March 31, 2024

Glacier Bancorp, Inc.

1st Quarter 2024 Highlights:

• Net income was $32.6 million for the current quarter, a decrease of $21.7 million, or 40 percent, from the prior quarter net income of $54.3 million and a decrease of $28.6 million, or 47 percent, from the prior year first quarter net income of $61.2 million. The current quarter included a total of $13.3 million related to credit loss expense from the acquisition of Wheatland Bank, acquisition-related expense and increased expense from the Federal Deposit Insurance Corporation (“FDIC”) special assessment.

• The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.59 percent, an increase of 3 basis points from the prior quarter net interest margin of 2.56 percent.

• Interest income of $279 million in the current quarter increased $5.9 million, or 2 percent, over the prior quarter and increased $47.5 million, or 20 percent, over the prior year first quarter.

• The loan portfolio of $16.733 billion increased $534 million, or 3 percent, during the current quarter.

• The loan yield for the current quarter of 5.46 percent increased 12 basis points compared to 5.34 percent in the prior quarter and increased 44 basis points from the prior year first quarter loan yield of 5.02 percent.

• Total deposits of $20.428 billion increased $498 million, or 3 percent, during the current quarter and increased $279 million, or 1 percent, from the prior year first quarter.

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

• Non-performing assets of $25.4 million at March 31, 2024 decreased $206 thousand, or 1 percent, from the prior quarter and decreased $6.6 million, or 20 percent, from the prior year first quarter.

• Stockholders’ equity of $3.111 billion increased $90.4 million, or 3 percent, during the current quarter and increased $184 million, or 6 percent, over the prior year first quarter.

• The Company declared a quarterly dividend of $0.33 per share. The Company has declared 156 consecutive quarterly dividends and has increased the dividend 49 times.

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

• The Company announced a purchase and assumption agreement with Heartland Bank (“HTLF”) to purchase six Montana branches from its Rocky Mountain Bank division including the deposits, loans, owned real estate and fixed assets associated with the branches.

Financial Summary

	At or for the Three Months ended
(Dollars in thousands, except per share and market data)	Mar 31, 2024				Dec 31, 2023			Mar 31, 2023
Operating results
Net income	$	32,627			54,316			61,211
Basic earnings per share	$	0.29			0.49			0.55
Diluted earnings per share	$	0.29			0.49			0.55
Dividends declared per share	$	0.33			0.33			0.33
Market value per share
Closing	$	40.28			41.32			42.01
High	$	42.75			44.06			50.03
Low	$	34.74			27.36			37.07
Selected ratios and other data
Number of common stock shares outstanding		113,388,590			110,888,942			110,868,713
Average outstanding shares - basic		112,492,142			110,884,496			110,824,648
Average outstanding shares - diluted		112,554,402			110,907,640			110,881,708
Return on average assets (annualized)		0.47	%		0.77	%		0.93	%
Return on average equity (annualized)		4.25	%		7.40	%		8.54	%
Efficiency ratio		74.41	%		65.20	%		60.39	%
Loan to deposit ratio		82.04	%		81.36	%		77.09	%
Number of full time equivalent employees		3,438			3,294			3,390
Number of locations		232			221			222
Number of ATMs		285			275			263

KALISPELL, Mont., April 18, 2024 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $32.6 million for the current quarter, a decrease of $28.6 million, or 47 percent, from the $61.2 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.29 per share, a decrease of 47 percent from the prior year first quarter diluted earnings per share of $0.55. The decrease in net income compared to the prior year first quarter was primarily due to the significant increase in funding costs over the year combined with the increased costs associated with the acquisition of Wheatland Bank. The current quarter included $5.7 million of acquisition-related expense and $6.1 million of credit loss expense from the acquisition of Wheatland Bank. Included in the current quarter non-interest expense was $1.5 million related to the FDIC increased loss estimates from the special assessment pursuant to a systemic risk determination. “We are pleased to see our margin grow in the quarter and believe this positive trend will continue during 2024,” said Randy Chesler, President and Chief Executive Officer. “We remain very confident in the quality of our loan portfolio and were pleased to welcome Wheatland Bank to the Company and announce the acquisition of the six Rocky Mountain Bank branches in Montana from Heartland Financial.”

On January 31, 2024, the Company completed the acquisition of Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, “Wheatland”), headquartered in Spokane, Washington. Wheatland has 14 branches in eastern Washington and was combined with the North Cascades Bank division, with combined operations under the name Wheatland Bank, division of Glacier Bank. The Company’s results of operations and financial condition include the Wheatland acquisition beginning on the acquisition date. The following table discloses the preliminary fair value estimates of select classifications of assets and liabilities acquired:

	Wheatland
(Dollars in thousands)	January 31, 2024
Total assets	$	777,659
Debt securities		187,183
Loans receivable		450,403
Non-interest bearing deposits		277,651
Interest bearing deposits		339,304
Borrowings		58,500

During the current quarter, the Company announced the signing of a purchase and assumption agreement to purchase six Montana branches from the Rocky Mountain Bank division of HTLF. The branches will join Glacier Bank divisions operating in Montana. The branch acquisition is subject to regulatory approvals and other customary conditions of closing and is expected to be completed in the third quarter of 2024.

Asset Summary

											$ Change from
(Dollars in thousands)	Mar 31, 2024				Dec 31, 2023			Mar 31, 2023			Dec 31, 2023			Mar 31, 2023
Cash and cash equivalents	$	788,660			1,354,342			1,529,534			(565,682	)		(740,874	)
Debt securities, available-for-sale		4,629,073			4,785,719			5,198,313			(156,646	)		(569,240	)
Debt securities, held-to-maturity		3,451,583			3,502,411			3,664,393			(50,828	)		(212,810	)
Total debt securities		8,080,656			8,288,130			8,862,706			(207,474	)		(782,050	)
Loans receivable
Residential real estate		1,752,514			1,704,544			1,508,403			47,970			244,111
Commercial real estate		10,672,269			10,303,306			9,992,019			368,963			680,250
Other commercial		3,030,608			2,901,863			2,804,104			128,745			226,504
Home equity		883,062			888,013			829,844			(4,951	)		53,218
Other consumer		394,049			400,356			384,242			(6,307	)		9,807
Loans receivable		16,732,502			16,198,082			15,518,612			534,420			1,213,890
Allowance for credit losses		(198,779	)		(192,757	)		(186,604	)		(6,022	)		(12,175	)
Loans receivable, net		16,533,723			16,005,325			15,332,008			528,398			1,201,715
Other assets		2,419,131			2,094,832			2,078,186			324,299			340,945
Total assets	$	27,822,170			27,742,629			27,802,434			79,541			19,736

The $789 million cash balance at March 31, 2024 decreased $566 million during the current quarter as cash was utilized to partially fund the maturity of the BTFP. Total debt securities of $8.081 billion at March 31, 2024 decreased $207 million during the current quarter and decreased $782 million, or 9 percent, from the prior year end. Debt securities represented 29 percent of total assets at March 31, 2024 compared to 30 percent at December 31, 2023 and 32 percent at March 31, 2023.

The loan portfolio of $16.733 billion at March 31, 2024 increased $534 million, or 3 percent, during the current quarter and increased $1.214 billion, or 8 percent, from the prior year. Excluding the Wheatland acquisition, the loan portfolio increased $84.0 million, or 2 percent annualized, with the largest increase in commercial real estate, which increased $63.9 million, or 2 percent annualized. Excluding the Wheatland acquisition, the loan portfolio increased $763 million, or 5 percent, from the prior year first quarter with the largest increase in commercial real estate loans, which increased $375 million, or 4 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, 2024				Dec 31, 2023			Mar 31, 2023
Allowance for credit losses
Balance at beginning of period	$	192,757			182,283			182,283
Acquisitions		3			—			—
Provision for credit losses		9,091			20,790			6,260
Charge-offs		(4,295	)		(15,095	)		(3,293	)
Recoveries		1,223			4,779			1,354
Balance at end of period	$	198,779			192,757			186,604
Provision for credit losses
Loan portfolio	$	9,091			20,790			6,260
Unfunded loan commitments		(842	)		(5,995	)		(790	)
Total provision for credit losses	$	8,249			14,795			5,470
Other real estate owned	$	432			1,032			—
Other foreclosed assets		459			471			31
Accruing loans 90 days or more past due		3,796			3,312			3,545
Non-accrual loans		20,738			20,816			28,403
Total non-performing assets	$	25,425			25,631			31,979
Non-performing assets as a percentage of subsidiary assets		0.09	%		0.09	%		0.12	%
Allowance for credit losses as a percentage of non-performing loans		810	%		799	%		584	%
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		0.02	%		0.06	%		0.01	%
Accruing loans 30-89 days past due	$	62,423			49,967			24,993
U.S. government guarantees included in non-performing assets	$	1,490			1,503			2,071

Non-performing assets of $25.4 million at March 31, 2024 decreased $206 thousand, or 1 percent, over the prior quarter and decreased $6.6 million, or 20 percent, over the prior year first quarter. Non-performing assets as a percentage of subsidiary assets at March 31, 2024 was 0.09 percent compared to 0.09 percent in the prior quarter and 0.12 percent in the prior year first quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $62.4 million at March 31, 2024 increased $12.5 million from the prior quarter and increased $37.4 million from prior year first quarter. The increase over the prior period was primarily isolated to one credit relationship of $18.1 million. Early stage delinquencies as a percentage of loans at March 31, 2024 were 0.37 percent compared to 0.31 percent for the prior quarter end and 0.16 percent for the prior year first quarter.

The current quarter credit loss expense of $8.2 million included $5.3 million of provision for credit losses on loans and $818 thousand of provision for credit loss on unfunded loan commitments from the acquisition of Wheatland. Excluding the acquisition of Wheatland, the current quarter credit loss expense was $2.1 million, including a $3.8 million credit loss expense from loans and $1.7 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 March 31, 2024 and December 31, 2023 was 1.19 percent compared to 1.20 percent at March 31, 2023.

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 2024	$	9,091			$	3,072		1.19	%		0.37	%		0.09	%
Fourth quarter 2023		4,181				3,695		1.19	%		0.31	%		0.09	%
Third quarter 2023		5,095				2,209		1.19	%		0.09	%		0.15	%
Second quarter 2023		5,254				2,473		1.19	%		0.16	%		0.12	%
First quarter 2023		6,260				1,939		1.20	%		0.16	%		0.12	%
Fourth quarter 2022		6,060				1,968		1.20	%		0.14	%		0.12	%
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	%

Net charge-offs for the current quarter were $3.1 million compared to $3.7 million in the prior quarter and $1.9 million for the prior year first quarter. Net charge-offs of $3.1 million included $2.4 million in deposit overdraft net charge-offs and $626 thousand of net loan charge-offs.

Excluding the acquisition of Wheatland, the current quarter provision for credit loss expense for loans was $3.8 million, which was a decrease of $361 thousand from the prior quarter and a $2.4 million decrease from the prior year first 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)	Mar 31, 2024			Dec 31, 2023		Mar 31, 2023		Dec 31, 2023			Mar 31, 2023
Deposits
Non-interest bearing deposits	$	6,055,069		6,022,980		7,001,241		32,089			(946,172	)
NOW and DDA accounts		5,376,605		5,321,257		5,156,709		55,348			219,896
Savings accounts		2,949,908		2,833,887		2,985,351		116,021			(35,443	)
Money market deposit accounts		3,002,942		2,831,624		3,429,123		171,318			(426,181	)
Certificate accounts		3,039,190		2,915,393		1,155,494		123,797			1,883,696
Core deposits, total		20,423,714		19,925,141		19,727,918		498,573			695,796
Wholesale deposits		3,809		4,026		420,390		(217	)		(416,581	)
Deposits, total		20,427,523		19,929,167		20,148,308		498,356			279,215
Repurchase agreements		1,540,008		1,486,850		1,191,323		53,158			348,685
Deposits and repurchase agreements, total		21,967,531		21,416,017		21,339,631		551,514			627,900
Federal Home Loan Bank advances		2,140,157		—		335,000		2,140,157			1,805,157
FRB Bank Term Funding		—		2,740,000		2,740,000		(2,740,000	)		(2,740,000	)
Other borrowed funds		88,814		81,695		76,185		7,119			12,629
Subordinated debentures		132,984		132,943		132,822		41			162
Other liabilities		381,977		351,693		251,892		30,284			130,085
Total liabilities	$	24,711,463		24,722,348		24,875,530		(10,885	)		(164,067	)

Total deposits of $20.428 billion at March 31, 2024 increased $498 million, or 3 percent, during the current quarter and increased $279 million, or 1 percent, from the prior year first quarter. Excluding the Wheatland acquisition, total deposits decreased $119 million, or 1 percent, during the current quarter and decreased $338 million, or 2 percent, from the prior year first quarter. Non-interest bearing deposits represented 30 percent of total deposits at both March 31, 2024 and December 31, 2023 compared to 35 percent at March 31, 2023.

Upon maturity in the current quarter, the Company paid off its $2.740 billion BTFP borrowings with a combination of $2.140 billion in FHLB borrowings and cash, resulting in a net reduction of $600 million in borrowings. The FHLB borrowings of $2.140 billion at quarter end included $340 million of overnight borrowings and $1.800 billion in term borrowings that will mature between March of 2025 and March of 2026 at a weighted average rate of 4.75 percent and a FHLB dividend adjusted weighted average rate of 4.41 percent compared to 4.38 percent for the matured BTFP borrowings.

Stockholders’ Equity Summary

											$ Change from
(Dollars in thousands, except per share data)	Mar 31, 2024				Dec 31, 2023			Mar 31, 2023			Dec 31, 2023			Mar 31, 2023
Common equity	$	3,483,012			3,394,394			3,337,132			88,618			145,880
Accumulated other comprehensive loss		(372,305	)		(374,113	)		(410,228	)		1,808			37,923
Total stockholders’ equity		3,110,707			3,020,281			2,926,904			90,426			183,803
Goodwill and core deposit intangible, net		(1,069,808	)		(1,017,263	)		(1,024,545	)		(52,545	)		(45,263	)
Tangible stockholders’ equity	$	2,040,899			2,003,018			1,902,359			37,881			138,540

Stockholders’ equity to total assets		11.18	%		10.89	%		10.53	%
Tangible stockholders’ equity to total tangible assets		7.63	%		7.49	%		7.10	%
Book value per common share	$	27.43			27.24			26.40			0.19			1.03
Tangible book value per common share	$	18.00			18.06			17.16			(0.06	)		0.84

Tangible stockholders’ equity of $2.041 billion at March 31, 2024 increased $37.9 million, or 2 percent, compared to the prior quarter and was primarily due to $92.4 million of Company common stock issued for the acquisition of Wheatland. The increase was partially offset by the increase in goodwill and core deposits associated the acquisition of Wheatland. Tangible book value per common share of $18.00 at the current quarter end decreased $0.06 per share, or 33 basis points, from the prior quarter and increased $0.84 per share, or 5 percent, from the prior year first quarter.

Cash Dividends
On March 27, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable April 18, 2024 to shareholders of record on April 9, 2024. The dividend was the Company’s 156th 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 March 31, 2024  Compared to December 31, 2023, and March 31, 2023
Income Summary
	Three Months ended										$ Change from
(Dollars in thousands)	Mar 31, 2024				Dec 31, 2023			Mar 31, 2023			Dec 31, 2023			Mar 31, 2023
Net interest income
Interest income	$	279,402			273,496			231,888			5,906			47,514
Interest expense		112,922			107,040			45,696			5,882			67,226
Total net interest income		166,480			166,456			186,192			24			(19,712	)
Non-interest income
Service charges and other fees		18,563			19,115			17,771			(552	)		792
Miscellaneous loan fees and charges		4,362			4,484			3,967			(122	)		395
Gain on sale of loans		3,362			2,228			2,400			1,134			962
Gain (loss) on sale of securities		16			1,712			(114	)		(1,696	)		130
Other income		3,686			3,326			3,871			360			(185	)
Total non-interest income		29,989			30,865			27,895			(876	)		2,094
Total income	$	196,469			197,321			214,087			(852	)		(17,618	)
Net interest margin (tax-equivalent)		2.59	%		2.56	%		3.08	%

Net Interest Income
The current quarter interest income of $279 million increased $5.9 million, or 2 percent, over the prior quarter and increased $47.5 million, or 20 percent, from the prior year first quarter. Both increases were primarily driven by the increase in the loan yields and the increase in average balances of the loan portfolio. The loan yield of 5.46 percent in the current quarter increased 12 basis points from the prior quarter loan yield of 5.34 percent and increased 44 basis points from the prior year first quarter loan yield of 5.02 percent.

The current quarter interest expense of $113 million increased $5.9 million, or 6 percent, over the prior quarter and increased $67.2 million, or 147 percent, over the prior year first quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 1.34 percent for the current quarter compared to 1.24 percent in the prior quarter and 0.23 percent for the prior year first quarter. The increase in core deposit costs during the current quarter of 10 basis points was the smallest increase since the fourth quarter of 2022. The total cost of funding (including non-interest bearing deposits) was 1.84 percent in the current quarter compared to 1.72 percent in the prior quarter and 0.79 percent in the prior year first quarter, which was the result of the increased deposit and borrowing rates.

The current quarter experienced an increase in the net interest margin for the first time since the third quarter of 2022. The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.59 percent compared to 2.56 percent in the prior quarter and was primarily driven by the increase in loan yields outpacing the increase in deposit costs. Excluding the 3 basis points from discount accretion and the 1 basis point from recovery of non-accrual interest, the core net interest margin was 2.55 percent compared to 2.54 in the prior quarter and 3.07 percent in the prior year first quarter.

Non-interest Income
Non-interest income for the current quarter totaled $30.0 million, which was a decrease of $876 thousand, or 3 percent, over the prior quarter. Gain on the sale of residential loans of $3.4 million for the current quarter increased $1.1 million, or 51 percent, compared to the prior quarter and increased $962 thousand, or 40 percent, from the prior year first quarter. Included in the prior 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							$ Change from
(Dollars in thousands)	Mar 31, 2024			Dec 31, 2023		Mar 31, 2023		Dec 31, 2023			Mar 31, 2023
Compensation and employee benefits	$	85,789		71,420		81,477		14,369			4,312
Occupancy and equipment		11,883		10,533		11,665		1,350			218
Advertising and promotions		3,983		3,410		4,235		573			(252	)
Data processing		9,159		8,511		8,109		648			1,050
Other real estate owned and foreclosed assets		25		78		12		(53	)		13
Regulatory assessments and insurance		7,761		12,435		4,903		(4,674	)		2,858
Core deposit intangibles amortization		2,760		2,427		2,449		333			311
Other expenses		30,483		23,382		22,132		7,101			8,351
Total non-interest expense	$	151,843		132,196		134,982		19,647			16,861

Total non-interest expense of $152 million for the current quarter increased $19.6 million, or 15 percent, over the prior quarter and increased $16.9 million, or 12 percent, over the prior year first quarter. In the prior quarter, the FDIC issued a special assessment for the estimated losses associated with the bank failures in March of 2023 and FDIC loss estimates were again increased by $1.5 million in the current quarter from $6.0 million in the prior quarter. Included in the current quarter was a total of $10.7 million of non-interest expense associated with the Wheatland acquisition, including $5.0 million in operating expenses and $5.7 million in acquisition-related expenses. Excluding the $10.7 million impact of the Wheatland acquisition and the $1.5 million FDIC special assessment, non-interest expense for the current quarter was $139.6 million. Excluding the $6.0 million FDIC special assessment, $459 thousand of acquisition-related expenses, and $6.0 million reduction in accrued performance-related compensation, non-interest expense for the prior quarter was $131.7 million. As adjusted, total non-interest expense of $139.6 million for the current quarter increased $7.9 million, or 6 percent, over the prior quarter non-interest expense of $131.7 million, and an increase of $5.0 million, or 4 percent, over the prior year first quarter.

Compensation and employee benefits expense of $85.8 million for the current quarter increased $14.4 million, or 20 percent, from the prior quarter and increased $4.3 million, or 5 percent, over the prior year first quarter which was driven by the acquisition of Wheatland, annual salary increases and increases in other benefits. Excluding the prior quarter $6.0 million accrual reduction and the $2.2 million compensation from the Wheatland acquisition, compensation and employee benefit expenses for the current quarter increased $6.2 million, or 8 percent over the prior quarter.

Other expense of $30.5 million increased $7.1 million, or 30 percent, from the prior quarter and increased $8.4 million from the prior year first quarter with both increases primarily attributable to increased acquisition-related expenses. Included in other expenses was acquisition-related expenses of $5.7 million in the current quarter, $459 thousand in the prior quarter and $352 thousand in the prior year first quarter. “The Company was excellent in controlling non-interest expenses in a challenging environment including the inflationary pressures that persist,” said Ron Copher, Chief Financial Officer.

Federal and State Income Tax Expense
Tax expense during the first quarter of 2024 was $3.8 million, a decrease of $4.0 million, or 52 percent, compared to the prior quarter and a decrease of $8.7 million, or 70 percent, from the prior year first quarter. The effective tax rate in the current quarter was 10.3 percent compared to 12.6 percent in the prior quarter and 16.9 percent in the prior year first quarter. The current quarter decrease in tax expense and the resulting effective tax rate was the result of a combination of increased federal income tax credits and a decrease in pre-tax income.

Efficiency Ratio
The efficiency ratio was 74.4 percent in the current quarter compared to 65.20 percent in the prior quarter and 60.39 percent in the prior year first quarter. The increase from the prior quarter was principally driven by the increased operating costs, including acquisition-related costs, from the Wheatland acquisition. The increase in the efficiency ratio from prior year first quarter was the combined impact of the expenses related to the Wheatland acquisition and a decrease in net 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, changes in the review and regulation of bank mergers, or increased banking and consumer protection regulations, that may adversely affect the Company’s business and strategies;

• risks related to overall economic conditions, including the impact on the economy of a 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, April 19, 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/BId550ca03e5d445a9891dc7564271bdf4. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/ah79xpra. 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), The Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), Western Security Bank (Billings, MT), and Wheatland Bank (Spokane, WA).

Glacier Bancorp, Inc. Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)	Mar 31, 2024				Dec 31, 2023			Mar 31, 2023
Assets
Cash on hand and in banks	$	232,064			246,525			290,960
Interest bearing cash deposits		556,596			1,107,817			1,238,574
Cash and cash equivalents		788,660			1,354,342			1,529,534
Debt securities, available-for-sale		4,629,073			4,785,719			5,198,313
Debt securities, held-to-maturity		3,451,583			3,502,411			3,664,393
Total debt securities		8,080,656			8,288,130			8,862,706
Loans held for sale, at fair value		27,035			15,691			14,461
Loans receivable		16,732,502			16,198,082			15,518,612
Allowance for credit losses		(198,779	)		(192,757	)		(186,604	)
Loans receivable, net		16,533,723			16,005,325			15,332,008
Premises and equipment, net		443,273			421,791			399,740
Other real estate owned and foreclosed assets		891			1,503			31
Accrued interest receivable		106,063			94,526			90,642
Deferred tax asset		161,327			159,070			172,453
Core deposit intangible, net		46,046			31,870			39,152
Goodwill		1,023,762			985,393			985,393
Non-marketable equity securities		111,129			12,755			23,414
Bank-owned life insurance		186,625			171,101			168,235
Other assets		312,980			201,132			184,665
Total assets	$	27,822,170			27,742,629			27,802,434
Liabilities
Non-interest bearing deposits	$	6,055,069			6,022,980			7,001,241
Interest bearing deposits		14,372,454			13,906,187			13,147,067
Securities sold under agreements to repurchase		1,540,008			1,486,850			1,191,323
FHLB advances		2,140,157			—			335,000
FRB Bank Term Funding		—			2,740,000			2,740,000
Other borrowed funds		88,814			81,695			76,185
Subordinated debentures		132,984			132,943			132,822
Accrued interest payable		32,584			125,907			8,968
Other liabilities		349,393			225,786			242,924
Total liabilities		24,711,463			24,722,348			24,875,530
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		1,134			1,109			1,109
Paid-in capital		2,443,584			2,350,104			2,344,514
Retained earnings - substantially restricted		1,038,294			1,043,181			991,509
Accumulated other comprehensive loss		(372,305	)		(374,113	)		(410,228	)
Total stockholders’ equity		3,110,707			3,020,281			2,926,904
Total liabilities and stockholders’ equity	$	27,822,170			27,742,629			27,802,434

Glacier Bancorp, Inc. Unaudited Condensed Consolidated Statements of Operations
	Three Months ended
(Dollars in thousands, except per share data)	Mar 31, 2024			Dec 31, 2023			Mar 31, 2023
Interest Income
Investment securities	$	56,218		57,233			43,642
Residential real estate loans		20,764		19,820			15,838
Commercial loans		181,472		175,957			155,682
Consumer and other loans		20,948		20,486			16,726
Total interest income		279,402		273,496			231,888
Interest Expense
Deposits		67,196		63,484			12,545
Securities sold under agreements to repurchase		12,598		12,229			4,606
Federal Home Loan Bank advances		4,249		—			23,605
FRB Bank Term Funding		27,097		30,228			3,032
Other borrowed funds		344		(372	)		496
Subordinated debentures		1,438		1,471			1,412
Total interest expense		112,922		107,040			45,696
Net Interest Income		166,480		166,456			186,192
Provision for credit losses		8,249		3,013			5,470
Net interest income after provision for credit losses		158,231		163,443			180,722
Non-Interest Income
Service charges and other fees		18,563		19,115			17,771
Miscellaneous loan fees and charges		4,362		4,484			3,967
Gain on sale of loans		3,362		2,228			2,400
Gain (loss) on sale of securities		16		1,712			(114	)
Other income		3,686		3,326			3,871
Total non-interest income		29,989		30,865			27,895
Non-Interest Expense
Compensation and employee benefits		85,789		71,420			81,477
Occupancy and equ...ipment		11,883		10,533			11,665
Advertising and promotions		3,983		3,410			4,235
Data processing		9,159		8,511			8,109
Other real estate owned and foreclosed assets		25		78			12
Regulatory assessments and insurance		7,761		12,435			4,903
Core deposit intangibles amortization		2,760		2,427			2,449
Other expenses		30,483		23,382			22,132
Total non-interest expense		151,843		132,196			134,982
Income Before Income Taxes		36,377		62,112			73,635
Federal and state income tax expense		3,750		7,796			12,424
Net Income	$	32,627		54,316			61,211

Glacier Bancorp, Inc. Average Balance Sheets
	Three Months ended
	March 31, 2024									December 31, 2023
(Dollars in thousands)	Average Balance			Interest & Dividends			Average Yield/ Rate			Average Balance			Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	1,747,184		$	20,764		4.75	%		$	1,700,598		$	19,820		4.66	%
Commercial loans 1		13,513,426			183,045		5.45	%			13,196,412			177,397		5.33	%
Consumer and other loans		1,283,388			20,948		6.56	%			1,279,626			20,486		6.35	%
Total loans 2		16,543,998			224,757		5.46	%			16,176,636			217,703		5.34	%
Tax-exempt debt securities 3		1,720,370			15,157		3.52	%			1,725,858			14,738		3.42	%
Taxable debt securities 4, 5		8,176,974			43,477		2.13	%			8,466,825			44,665		2.11	%
Total earning assets		26,441,342			283,391		4.31	%			26,369,319			277,106		4.17	%
Goodwill and intangibles		1,051,954									1,018,423
Non-earning assets		611,550									487,979
Total assets	$	28,104,846								$	27,875,721
Liabilities
Non-interest bearing deposits	$	5,966,546		$	—		—	%		$	6,262,801		$	—		—	%
NOW and DDA accounts		5,275,703			15,918		1.21	%			5,245,602			14,751		1.12	%
Savings accounts		2,900,649			5,655		0.78	%			2,843,788			4,848		0.68	%
Money market deposit accounts		2,948,294			14,393		1.96	%			2,911,054			13,600		1.85	%
Certificate accounts		3,000,713			31,175		4.18	%			2,872,192			29,563		4.08	%
Total core deposits		20,091,905			67,141		1.34	%			20,135,437			62,762		1.24	%
Wholesale deposits 6		3,965			55		5.50	%			53,841			722		5.32	%
Repurchase agreements		1,513,397			12,598		3.35	%			1,488,419			12,229		3.26	%
FHLB advances		350,754			4,249		4.79	%			—			—		—	%
FRB Bank Term Funding		2,483,077			27,097		4.39	%			2,740,000			30,228		4.38	%
Subordinated debentures and other borrowed funds		218,271			1,782		3.28	%			211,570			1,099		2.06	%
Total funding liabilities		24,661,369			112,922		1.84	%			24,629,267			107,040		1.72	%
Other liabilities		356,554									332,740
Total liabilities		25,017,923									24,962,007
Stockholders’ Equity
Stockholders’ equity		3,086,923									2,913,714
Total liabilities and stockholders’ equity	$	28,104,846								$	27,875,721
Net interest income (tax-equivalent)				$	170,469								$	170,066
Net interest spread (tax-equivalent)							2.47	%								2.45	%
Net interest margin (tax-equivalent)							2.59	%								2.56	%

______________________________

1		Includes tax effect of $1.6 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2024 and December 31, 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 $2.2 million and $2.0 million on tax-exempt debt securities income for the three months ended March 31, 2024 and December 31, 2023, respectively.
4		Includes interest income of $15.3 million and $17.7 million on average interest-bearing cash balances of $1.12 billion and $1.29 billion for the three months ended March 31, 2024 and December 31, 2023, respectively.
5		Includes tax effect of $215 thousand and $215 thousand on federal income tax credits for the three months ended March 31, 2024 and December 31, 2023, respectively.
6		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, 2024									March 31, 2023
(Dollars in thousands)	Average Balance			Interest & Dividends			Average Yield/ Rate			Average Balance			Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	1,747,184		$	20,764		4.75	%		$	1,493,938		$	15,838		4.24	%
Commercial loans 1		13,513,426			183,045		5.45	%			12,655,551			157,456		5.05	%
Consumer and other loans		1,283,388			20,948		6.56	%			1,207,315			16,726		5.62	%
Total loans 2		16,543,998			224,757		5.46	%			15,356,804			190,020		5.02	%
Tax-exempt debt securities 3		1,720,370			15,157		3.52	%			1,761,533			16,030		3.64	%
Taxable debt securities 4, 5		8,176,974			43,477		2.13	%			8,052,662			31,084		1.54	%
Total earning assets		26,441,342			283,391		4.31	%			25,170,999			237,134		3.82	%
Goodwill and intangibles		1,051,954									1,025,716
Non-earning assets		611,550									478,962
Total assets	$	28,104,846								$	26,675,677
Liabilities
Non-interest bearing deposits	$	5,966,546		$	—		—	%		$	7,274,228		$	—		—	%
NOW and DDA accounts		5,275,703			15,918		1.21	%			5,080,175			2,271		0.18	%
Savings accounts		2,900,649			5,655		0.78	%			3,107,559			514		0.07	%
Money market deposit accounts		2,948,294			14,393		1.96	%			3,468,953			5,834		0.68	%
Certificate accounts		3,000,713			31,175		4.18	%			984,770			2,584		1.06	%
Total core deposits		20,091,905			67,141		1.34	%			19,915,685			11,203		0.23	%
Wholesale deposits 6		3,965			55		5.50	%			120,468			1,342		4.52	%
Repurchase agreements		1,513,397			12,598		3.35	%			1,035,582			4,606		1.80	%
FHLB advances		350,754			4,249		4.79	%			1,990,833			23,605		4.74	%
FRB Bank Term Funding		2,483,077			27,097		4.39	%			280,944			3,032		4.32	%
Subordinated debentures and other borrowed funds		218,271			1,782		3.28	%			209,547			1,908		3.69	%
Total funding liabilities		24,661,369			112,922		1.84	%			23,553,059			45,696		0.79	%
Other liabilities		356,554									217,245
Total liabilities		25,017,923									23,770,304
Stockholders’ Equity
Stockholders’ equity		3,086,923									2,905,373
Total liabilities and stockholders’ equity	$	28,104,846								$	26,675,677
Net interest income (tax-equivalent)				$	170,469								$	191,438
Net interest spread (tax-equivalent)							2.47	%								3.03	%
Net interest margin (tax-equivalent)							2.59	%								3.08	%

______________________________

1		Includes tax effect of $1.6 million and $1.8 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2024 and 2023, respectively.
2		Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3		Includes tax effect of $2.2 million and $3.3 million on tax-exempt debt securities income for the three months ended March 31, 2024 and 2023, respectively.
4		Includes interest income of $15.3 million and $2.1 million on average interest-bearing cash balances of $1.12 billion and $176.9 million for the three months ended March 31, 2024 and 2023, respectively.
5		Includes tax effect of $215 thousand and $215 thousand on federal income tax credits for the three months ended March 31, 2024 and 2023, respectively.
6		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, 2024				Dec 31, 2023				Mar 31, 2023				Dec 31, 2023			Mar 31, 2023
Custom and owner occupied construction	$	273,835			$	290,572			$	295,604			(6	)%		(7	)%
Pre-sold and spec construction		223,294				236,596				312,715			(6	)%		(29	)%
Total residential construction		497,129				527,168				608,319			(6	)%		(18	)%
Land development		215,828				232,966				230,823			(7	)%		(6	)%
Consumer land or lots		188,635				187,545				187,498			1	%		1	%
Unimproved land		103,032				87,739				104,811			17	%		(2	)%
Developed lots for operative builders		47,591				56,142				69,896			(15	)%		(32	)%
Commercial lots		92,748				87,185				91,780			6	%		1	%
Other construction		915,782				900,547				965,244			2	%		(5	)%
Total land, lot, and other construction		1,563,616				1,552,124				1,650,052			1	%		(5	)%
Owner occupied		3,057,348				3,035,768				2,885,798			1	%		6	%
Non-owner occupied		3,920,696				3,742,916				3,631,158			5	%		8	%
Total commercial real estate		6,978,044				6,778,684				6,516,956			3	%		7	%
Commercial and industrial		1,371,201				1,363,479				1,353,919			1	%		1	%
Agriculture		929,420				772,458				715,863			20	%		30	%
1st lien		2,276,638				2,127,989				1,864,294			7	%		22	%
Junior lien		51,579				47,230				42,397			9	%		22	%
Total 1-4 family		2,328,217				2,175,219				1,906,691			7	%		22	%
Multifamily residential		881,117				796,538				649,148			11	%		36	%
Home equity lines of credit		947,652				979,891				893,037			(3	)%		6	%
Other consumer		223,566				229,154				224,125			(2	)%		—	%
Total consumer		1,171,218				1,209,045				1,117,162			(3	)%		5	%
States and political subdivisions		848,454				834,947				806,878			2	%		5	%
Other		191,121				204,111				208,085			(6	)%		(8	)%
Total loans receivable, including loans held for sale		16,759,537				16,213,773				15,533,073			3	%		8	%
Less loans held for sale 1		(27,035	)			(15,691	)			(14,461	)		72	%		87	%
Total loans receivable	$	16,732,502			$	16,198,082			$	15,518,612			3	%		8	%

______________________________

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, 2024			Dec 31, 2023		Mar 31, 2023		Mar 31, 2024		Mar 31, 2024		Mar 31, 2024
Custom and owner occupied construction	$	210		214		220		210		—		—
Pre-sold and spec construction		1,049		763		1,548		—		1,049		—
Total residential construction		1,259		977		1,768		210		1,049		—
Land development		28		35		129		28		—		—
Consumer land or lots		144		96		112		144		—		—
Unimproved land		—		—		51		—		—		—
Developed lots for operative builders		608		608		607		—		608		—
Commercial lots		2,205		47		188		2,158		47		—
Other construction		—		—		12,884		—		—		—
Total land, lot and other construction		2,985		786		13,971		2,330		655		—
Owner occupied		1,501		1,838		2,682		799		270		432
Non-owner occupied		8,853		11,016		4,544		8,596		257		—
Total commercial real estate		10,354		12,854		7,226		9,395		527		432
Commercial and Industrial		1,698		1,971		2,001		1,100		447		151
Agriculture		2,855		2,558		2,573		2,426		429		—
1st lien		2,930		2,664		2,015		2,540		390		—
Junior lien		69		180		111		44		25		—
Total 1-4 family		2,999		2,844		2,126		2,584		415		—
Multifamily residential		395		395		—		395		—		—
Home equity lines of credit		1,892		2,043		1,225		1,727		165		—
Other consumer		927		1,187		1,062		571		48		308
Total consumer		2,819		3,230		2,287		2,298		213		308
Other		61		16		27		—		61		—
Total	$	25,425		25,631		31,979		20,738		3,796		891

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, 2024			Dec 31, 2023			Mar 31, 2023			Dec 31, 2023		Mar 31, 2023
Custom and owner occupied construction	$	4,784		$	2,549		$	1,624		88%		195%
Pre-sold and spec construction		1,181			1,219			—		(3)%		n/m
Total residential construction		5,965			3,768			1,624		58%		267%
Land development		59			163			946		(64)%		(94)%
Consumer land or lots		332			624			668		(47)%		(50)%
Unimproved land		575			—			—		n/m		n/m
Commercial lots		1,225			2,159			—		(43)%		n/m
Other construction		1,248			—			5,264		n/m		(76)%
Total land, lot and other construction		3,439			2,946			6,878		17%		(50)%
Owner occupied		2,991			2,222			1,783		35%		68%
Non-owner occupied		18,118			14,471			429		25%		4,123%
Total commercial real estate		21,109			16,693			2,212		26%		854%
Commercial and industrial		14,806			12,905			3,677		15%		303%
Agriculture		3,922			594			947		560%		314%
1st lien		5,626			3,768			3,321		49%		69%
Junior lien		145			1			385		14,400%		(62)%
Total 1-4 family		5,771			3,769			3,706		53%		56%
Multifamily Residential		—			—			201		n/m		(100)%
Home equity lines of credit		3,668			4,518			2,804		(19)%		31%
Other consumer		1,948			3,264			1,598		(40)%		22%
Total consumer		5,616			7,782			4,402		(28)%		28%
Other		1,795			1,510			1,346		19%		33%
Total	$	62,423		$	49,967		$	24,993		25%		150%

______________________________

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, 2024				Dec 31, 2023			Mar 31, 2023			Mar 31, 2024		Mar 31, 2024
Pre-sold and spec construction		(4	)		(15	)		(4	)		—		4
Total residential construction		(4	)		(15	)		(4	)		—		4
Land development		(1	)		(135	)		—			—		1
Consumer land or lots		(1	)		(19	)		—			—		1
Other construction		—			889			—			—		—
Total land, lot and other construction		(2	)		735			—			—		2
Owner occupied		(3	)		(59	)		(68	)		—		3
Non-owner occupied		(1	)		799			298			—		1
Total commercial real estate		(4	)		740			230			—		4
Commercial and industrial		328			364			(382	)		674		346
Agriculture		68			—			—			68		—
1st lien		(4	)		66			44			—		4
Junior lien		(5	)		24			(5	)		10		15
Total 1-4 family		(9	)		90			39			10		19
Multifamily residential		—			(136	)		—			—		—
Home equity lines of credit		5			(6	)		(39	)		15		10
Other consumer		251			1,097			125			342		91
Total consumer		256			1,091			86			357		101
Other		2,439			7,447			1,970			3,186		747
Total	$	3,072			10,316			1,939			4,295		1,223

Visit our website at www.glacierbancorp.com

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