GBCI Glacier Bancorp Inc

Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $77.6 million for the current quarter, an increase of $14.2 million, or 22 percent, from the $63.4 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.81 per share, an increase of 23 percent from the prior year second quarter diluted earnings per share of $0.66. “We are pleased to see solid loan and deposit growth with an improving economic outlook,” said Randy Chesler, President and Chief Executive Officer. “The Glacier team has done an excellent job getting back to business and taking care of customers as our markets see increased activity with our summer season in full swing.”

Net income for the six months ended June 30, 2021 was $158.4 million, an increase of $51.6 million, or 48 percent, from the $106.8 million net income from the first six months in the prior year. Diluted earnings per share for the first half of the current year was $1.66 per share, an increase of 47 percent, from the diluted earnings per share of $1.13 for the same period last year.

In May 2021, the Company announced the signing of definitive agreement to acquire Altabancorp, the parent company of Altabank, a community bank based in American Fork, Utah (collectively, “Alta”). Alta provides banking services to individuals and businesses in Utah with twenty-five banking offices from Preston, Idaho to St. George, Utah. As of March 31, 2021, Alta had total assets of $3.522 billion, total loans of $1.797 billion and total deposits of $3.159 billion. The acquisition is subject to required regulatory approvals and other customary conditions of closing and is expected to be completed in the fourth quarter of 2021. Upon closing of the transaction, Alta will become the Company’s seventeenth Bank division.

Asset Summary

														$ Change from
(Dollars in thousands)	Jun 30,2021				Mar 31,2021			Dec 31,2020			Jun 30,2020			Mar 31,2021			Dec 31,2020			Jun 30,2020
Cash and cash equivalents	$	921,207			878,450			633,142			547,610			42,757			288,065			373,597
Debt securities, available-for-sale	6,147,143				5,853,315			5,337,814			3,533,950			293,828			809,329			2,613,193
Debt securities, held-to-maturity	1,024,730				588,751			189,836			203,275			435,979			834,894			821,455
Total debt securities	7,171,873				6,442,066			5,527,650			3,737,225			729,807			1,644,223			3,434,648
Loans receivable
Residential real estate	734,838				745,097			802,508			903,198			(10,259	)		(67,670	)		(168,360	)
Commercial real estate	6,584,322				6,474,701			6,315,895			6,047,692			109,621			268,427			536,630
Other commercial	2,932,419				3,100,584			3,054,817			3,547,249			(168,165	)		(122,398	)		(614,830	)
Home equity	648,800				625,369			636,405			654,392			23,431			12,395			(5,592	)
Other consumer	337,669				324,178			313,071			300,847			13,491			24,598			36,822
Loans receivable	11,238,048				11,269,929			11,122,696			11,453,378			(31,881	)		115,352			(215,330	)
Allowance for credit losses	(151,448		)		(156,446	)		(158,243	)		(162,509	)		4,998			6,795			11,061
Loans receivable, net	11,086,600				11,113,483			10,964,453			11,290,869			(26,883	)		122,147			(204,269	)
Other assets	1,308,353				1,336,553			1,378,961			1,330,944			(28,200	)		(70,608	)		(22,591	)
Total assets	$	20,488,033			19,770,552			18,504,206			16,906,648			717,481			1,983,827			3,581,385

Total debt securities of $7.172 billion at June 30, 2021 increased $730 million, or 11 percent, during the current quarter and increased $3.435 billion, or 92 percent, from the prior year second quarter. The Company continues to purchase debt securities with excess liquidity from the increase in core deposits and SBA forgiveness of PPP loans. Debt securities represented 35 percent of total assets at June 30, 2021 compared to 30 percent of total assets at December 30, 2020 and 22 percent of total assets at June 30, 2020.

The loan portfolio of $11.238 billion at June 30, 2021 decreased $31.9 million, or 28 basis points, in the current quarter. Excluding the PPP loans, the loan portfolio increased $249 million, or 10 percent annualized, during the current quarter with the largest increase in other commercial loans which increased $113 million.

The loan portfolio decreased $215 million, or 2 percent, from the prior year second quarter. Excluding the PPP loans, the loan portfolio increased $517 million, or 5 percent, from the prior year second quarter with the largest increase in commercial real estate loans which increased $537 million, or 9 percent.

Credit Quality Summary

	At or for the Six Months ended					At or for the Three Months ended				At or for the Year ended				At or for the Six Months ended
(Dollars in thousands)	Jun 30,2021					Mar 31,2021				Dec 31,2020				Jun 30,2020
Allowance for credit losses
Balance at beginning of period	$	158,243				158,243				124,490				124,490
Impact of adopting CECL	—					—				3,720				3,720
Acquisitions	—					—				49				49
Provision for credit losses	(5,234		)			489				37,637				36,296
Charge-offs	(5,946		)			(4,246	)			(13,808	)			(5,235	)
Recoveries	4,385					1,960				6,155				3,189
Balance at end of period	$	151,448				156,446				158,243				162,509
Provision for credit losses
Loan portfolio	$	(5,234	)			489				37,637				36,296
Unfunded loan commitments	(371		)			(441	)			2,128				(182	)
Total provision for credit losses	$	(5,605	)			48				39,765				36,114
Other real estate owned	$	771				2,965				1,744				4,743
Accruing loans 90 days or more past due	4,220					3,733				1,725				6,071
Non-accrual loans	48,050					29,887				31,964				35,157
Total non-performing assets	$	53,041				36,585				35,433				45,971
Non-performing assets as a percentage of subsidiary assets	0.26			%		0.19		%		0.19		%		0.27		%
Allowance for credit losses as a percentage of non-performing loans	290			%		465		%		470		%		394		%
Allowance for credit losses as a percentage of total loans	1.35			%		1.39		%		1.42		%		1.42		%
Net charge-offs as a percentage of total loans	0.01			%		0.02		%		0.07		%		0.02		%
Accruing loans 30-89 days past due	$	12,076				44,616				22,721				25,225
Accruing troubled debt restructurings	$	37,667				41,345				42,003				41,759
Non-accrual troubled debt restructurings	$	3,179				4,702				3,507				8,204
U.S. government guarantees included in non-performing assets	$	4,186				2,778				3,011				3,305

Non-performing assets of $53.0 million at June 30, 2021 increased $16.5 million, over the prior quarter and was primarily isolated to one credit relationship. Non-performing assets increased $7.1 million, or 15 percent, over the prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2021 was 0.26 percent. Excluding the government guaranteed PPP loans, the non-performing assets as a percentage of subsidiary assets at June 30, 2021 was 0.27 percent, an increase of 8 basis points from the prior quarter and 3 basis points decrease from the prior year second quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $12.1 million at June 30, 2021 decreased $32.5 million from the prior quarter with a large portion of the decrease primarily isolated to one credit relationship which moved to non-accrual at June 30, 2021. Early stage delinquencies decreased $13.1 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2021 was 0.11 percent, which was a decrease of 29 basis points from prior quarter and an 11 basis points decrease from prior year second quarter. Excluding PPP loans, early stage delinquencies as a percentage of loans at June 30, 2021 was 0.11 percent, which was a decrease of 32 basis points from prior quarter and a 14 basis points decrease from prior year second quarter.

The current quarter provision for credit loss benefit on loans of $5.7 million was a decrease of $6.2 million from the prior quarter provision for credit loss expense of $489 thousand and a $19.3 million decrease from the prior year second quarter provision for credit loss expense of $13.6 million. The higher levels of provision for credit losses in the prior year second quarter were driven by negative economic forecasts due to COVID-19. The lower levels in the current quarter related to improvement in the economic forecasts.

The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at June 30, 2021 was 1.35 percent which was a 4 basis points decrease compared to the prior quarter. Excluding the PPP loans, the ACL as percentage of loans was 1.43 percent compared to 1.51 percent in the prior quarter and 1.62 percent in the prior year second quarter.

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

(Dollars in thousands)	Provision for Credit Losses Loans				Net (Recoveries)Charge-Offs				ACLas a Percentof Loans			AccruingLoans 30-89Days Past Dueas a Percent ofLoans			Non-PerformingAssets toTotal SubsidiaryAssets
Second quarter 2021	$	(5,723	)		$	(725	)		1.35	%		0.11	%		0.26	%
First quarter 2021	489				2,286				1.39	%		0.40	%		0.19	%
Fourth quarter 2020	(1,528		)		4,781				1.42	%		0.20	%		0.19	%
Third quarter 2020	2,869				826				1.42	%		0.15	%		0.25	%
Second quarter 2020	13,552				1,233				1.42	%		0.22	%		0.27	%
First quarter 2020	22,744				813				1.49	%		0.41	%		0.26	%
Fourth quarter 2019	—				1,045				1.31	%		0.24	%		0.27	%
Third quarter 2019	—				3,519				1.32	%		0.31	%		0.40	%

Net recoveries for the current quarter were $725 thousand compared to net charge-offs of $2.3 million for the prior quarter and net charge-offs $1.2 million from the same quarter last year. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

In response to COVID-19, the Company modified 3,054 for $1.515 billion during the second quarter of 2020. These modifications were primarily short-term payment deferrals under six months. During the second half of 2020, the majority of the modified loan deferral periods expired, and the loans returned to regular payment status. As of June 30, 2021, $46.7 million of the modifications remain in the deferral period. In addition the state of Montana created the Montana Loan Deferment Program for only Montana-based businesses and was implemented only in the third quarter of 2020. Cares Act Funds were used to provide interest payments upfront and directly to lenders on behalf of participating borrowers to convert existing commercial loans to interest only status, resulting in the deferral of principal and interest for a period of six to twelve months. As of June 30, 2021, the Company had $105 million in eligible loans benefiting from this grant program compared to $272 million in the prior quarter.

PPP Loans

	Three Months ended										Six Months ended
(Dollars in thousands)	Jun 30, 2021				Mar 31, 2021			Jun 30, 2020			Jun 30, 2021			Jun 30, 2020
PPP interest income	$	10,328			13,523			7,304			23,851			7,304
Deferred compensation on originating PPP loans	1,522				5,213			8,412			6,735			8,412
Total PPP income impact	$	11,850			18,736			15,716			30,586			15,716

(Dollars in thousands)	Jun 30, 2021				Mar 31, 2021			Dec 31, 2020			Jun 30, 2020
PPP Round 1 loans	$	176,498			489,208			909,173			1,426,746
PPP Round 2 loans	518,107				486,583			—			—
Total PPP loans	694,605				975,791			909,173			1,426,746
Net remaining fees - Round 1	1,313				6,244			17,605			40,590
Net remaining fees - Round 2	22,694				21,890			—			—
Total net remaining fees	$	24,007			28,134			17,605			40,590

The SBA Round 2 PPP program ended in early May after the available funds were fully drawn upon. During the current quarter, the Company originated $67.6 million of Round 2 PPP loans which generated $5.6 million of SBA deferred processing fees and $1.5 million of deferred compensation costs for total net deferred fees of $4.1 million. During the first half of 2021, the Company originated $555 million of Round 2 PPP loans which generated $33.2 million of SBA deferred processing fees and $6.7 million of deferred compensation costs for total net deferred fees of $26.5 million.

During the current year, the SBA processing fees received on Round 2 averaged 5.99 percent which compared to the average of 3.75 percent received on Round 1 in the prior year. The increase in the fees received was the result of an increase in the number of smaller loans which receive a higher percentage fee and the change in the SBA fee schedule for loans under $50 thousand.

The Company continued to submit applications to the SBA for Round 1 PPP loan forgiveness and also began submitting forgiveness applications for Round 2. As of June 30, 2021, the Company had $176 million or 12 percent of the $1.472 billion of Round 1 PPP loans originated in the prior year and had $518 million or 93 percent of the $555 million of Round 2 PPP loans originated in the current year.

The Company recognized $10.3 million of interest income (including deferred fees and costs) from the Round 1 and Round 2 PPP loans in the current quarter. The income recognized in the current quarter included $6.0 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of the PPP loans at June 30, 2021 were $24.0 million, which will be recognized into interest income over the remaining life of the loans or when the loans are forgiven in whole or in part by the SBA.

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

Liability Summary

														$ Change from
(Dollars in thousands)	Jun 30,2021				Mar 31,2021			Dec 31,2020			Jun 30,2020			Mar 31,2021			Dec 31,2020			Jun 30,2020
Deposits
Non-interest bearing deposits	$	6,307,794			6,040,440			5,454,539			5,043,704			267,354			853,255			1,264,090
NOW and DDA accounts	4,151,264				4,035,455			3,698,559			3,113,863			115,809			452,705			1,037,401
Savings accounts	2,346,129				2,206,592			2,000,174			1,756,503			139,537			345,955			589,626
Money market deposit accounts	2,990,021				2,817,708			2,627,336			2,403,641			172,313			362,685			586,380
Certificate accounts	939,563				965,986			978,779			995,536			(26,423	)		(39,216	)		(55,973	)
Core deposits, total	16,734,771				16,066,181			14,759,387			13,313,247			668,590			1,975,384			3,421,524
Wholesale deposits	26,121				38,143			38,142			68,285			(12,022	)		(12,021	)		(42,164	)
Deposits, total	16,760,892				16,104,324			14,797,529			13,381,532			656,568			1,963,363			3,379,360
Repurchase agreements	995,201				996,878			1,004,583			881,227			(1,677	)		(9,382	)		113,974
Federal Home Loan Bank advances	—				—			—			37,963			—			—			(37,963	)
Other borrowed funds	33,556				33,452			33,068			32,546			104			488			1,010
Subordinated debentures	132,540				132,499			139,959			139,917			41			(7,419	)		(7,377	)
Other liabilities	211,889				208,014			222,026			229,748			3,875			(10,137	)		(17,859	)
Total liabilities	$	18,134,078			17,475,167			16,197,165			14,702,933			658,911			1,936,913			3,431,145

Core deposits of $16.735 billion as of June 30, 2021 increased $669 million, or 17 percent annualized, from the prior quarter and increased $3.422 billion, or 26 percent, from the prior year second quarter. Non-interest bearing deposits of $6.308 billion as of June 30, 2021 increased $267 million, or 4 percent, from the prior quarter and increased $1.264 billion, or 25 percent, from the prior year second quarter. The last fifteen months unprecedented increase in deposits resulted from a number of factors including the PPP loan proceeds deposited by customers, federal stimulus deposits and the increase in customer savings. Non-interest bearing deposits were 38 percent of total core deposits at June 30, 2021 compared to 37 percent of total core deposits at December 31, 2020 and 38 percent at June 30, 2020.

During the prior quarter, the Company paid off $7.5 million of subordinated debt. The low levels of borrowings, including wholesale deposits and Federal Home Loan Bank (“FHLB”) advances, reflected the significant increase in core deposits which funded the asset growth.

Stockholders’ Equity Summary

														$ Change from
(Dollars in thousands, except per share data)	Jun 30,2021				Mar 31,2021			Dec 31,2020			Jun 30,2020			Mar 31,2021			Dec 31,2020			Jun 30,2020
Common equity	$	2,263,513			2,215,465			2,163,951			2,073,806			48,048			99,562			189,707
Accumulated other comprehensive income	90,442				79,920			143,090			129,909			10,522			(52,648	)		(39,467	)
Total stockholders’ equity	2,353,955				2,295,385			2,307,041			2,203,715			58,570			46,914			150,240
Goodwill and core deposit intangible, net	(564,546		)		(567,034	)		(569,522	)		(574,088	)		2,488			4,976			9,542
Tangible stockholders’ equity	$	1,789,409			1,728,351			1,737,519			1,629,627			61,058			51,890			159,782

Stockholders’ equity to total assets	11.49		%		11.61	%		12.47	%		13.03	%
Tangible stockholders’ equity to total tangible assets	8.98		%		9.00	%		9.69	%		9.98	%
Book value per common share	$	24.65			24.03			24.18			23.10			0.62			0.47			1.55
Tangible book value per common share	$	18.74			18.10			18.21			17.08			0.64			0.53			1.66

Tangible stockholders’ equity of $1.789 billion at June 30, 2021 increased $61.1 million, or 4 percent, from the prior quarter and was the result of earnings retention coupled with an increase in other comprehensive income. Tangible stockholders’ equity of at June 30, 2021 increased $160 million, or 10 percent, from the prior year second quarter and was due to earnings retention that more than offset the decrease in other comprehensive income. Tangible book value per common share of $18.74 at the current quarter end increased $0.64 per share, or 4 percent, from the prior quarter and increased $1.66 per share, or 10 percent, from a year ago.

Cash DividendsOn June 30, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.32 per share, an increase of $0.01 per share, or 3 percent, over the prior quarter regular dividend. The dividend was payable July 22, 2021 to shareholders of record on July 13, 2021. The dividend was the 145th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

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

Income Summary

	Three Months ended										$ Change from
(Dollars in thousands)	Jun 30,2021				Mar 31,2021			Jun 30,2020			Mar 31,2021			Jun 30,2020
Net interest income
Interest income	$	159,956			161,552			155,404			(1,596	)		4,552
Interest expense	4,487				4,740			7,185			(253	)		(2,698	)
Total net interest income	155,469				156,812			148,219			(1,343	)		7,250
Non-interest income
Service charges and other fees	13,795				12,792			11,366			1,003			2,429
Miscellaneous loan fees and charges	2,923				2,778			1,682			145			1,241
Gain on sale of loans	16,106				21,624			25,858			(5,518	)		(9,752	)
(Loss) gain on sale of investments	(61		)		284			128			(345	)		(189	)
Other income	2,759				2,643			2,190			116			569
Total non-interest income	35,522				40,121			41,224			(4,599	)		(5,702	)
Total income	190,991				196,933			189,443			(5,942	)		1,548
Net interest margin (tax-equivalent)	3.44		%		3.74	%		4.12	%

Net Interest IncomeThe current quarter net interest income of $155 million decreased $1.3 million, or 86 basis points, over the prior quarter and increased $7.3 million, or 5 percent, from the prior year second quarter. The current quarter interest income of $160 million decreased $1.6 million, or 1 percent, compared to the prior quarter due to a decrease in interest income from the PPP loans. The current quarter interest income increased $4.6 million, or 3 percent, over the prior year second quarter due to an increase in interest income from the PPP loans and debt securities. The interest income (which included deferred fees and deferred costs) from the PPP loans was $10.3 million in the current quarter and $13.5 million in the prior quarter and $7.3 million in the prior year second quarter. Excluding the PPP loans, net interest income was $150 million in the current quarter compared to $148 million in the prior quarter and $145 million in the prior year second quarter.

The current quarter interest expense of $4.5 million decreased $253 thousand, or 5 percent, over the prior quarter and decreased $2.7 million, or 38 percent, over the prior year second quarter primarily as result of a decrease in deposit rates along with a shift in funding liabilities to low cost deposits. During the current quarter, the total cost of funding (including non-interest bearing deposits) of 10 basis points declined 2 basis points from the prior quarter and declined 10 basis points from the prior year second quarter with both decreases driven by a decrease in rates in deposits and borrowings.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.44 percent compared to 3.74 percent in the prior quarter and 4.12 in the prior year second quarter. The core net interest margin, excluding 3 basis points of discount accretion, 1 basis point from non-accrual interest and 7 basis points increase from the PPP loans, was 3.33 percent compared to 3.56 in the prior quarter and 4.21 percent in the prior year second quarter. The core net interest margin decreased 23 basis points in the current quarter and decreased 88 basis points from the prior year second quarter due to a decrease in earning asset yields. Earning asset yields have decreased due to the combined impact of the significant increase in the debt securities and the decrease in yields on both loans and debt securities. Debt securities comprised 39.4 percent of the earning assets during the current quarter compared to 35.7 percent in the prior quarter and 24.6 percent in the prior year second quarter.

Non-interest IncomeNon-interest income for the current quarter totaled $35.5 million which was a decrease of $4.6 million, or 11 percent, over the prior quarter and a decrease of $5.7 million, or 14 percent, over the same quarter last year. Service charges and other fees increased $1.0 million from the prior quarter and increased $2.4 million from the prior year second quarter as a result of increased customer accounts and transaction activity. Miscellaneous loan fees and charges of $2.9 million in the current quarter increased $1.2 million, or 74 percent, from the prior year second quarter and was primarily driven by increases in loan servicing income and credit card interchange fees due to increased activity.

Gain on the sale of loans of $16.1 million for the current quarter decreased $5.5 million, or 26 percent, compared to the prior quarter and decreased $9.8 million, or 38 percent, from the prior year second quarter. The current quarter mortgage activity was lower than prior periods, but still remained at historically elevated levels.

Non-interest Expense Summary

	Three Months ended										$ Change from
(Dollars in thousands)	Jun 30,2021				Mar 31,2021			Jun 30,2020			Mar 31,2021			Jun 30,2020
Compensation and employee benefits	$	64,109			62,468			57,981			1,641			6,128
Occupancy and equipment	9,208				9,515			9,357			(307	)		(149	)
Advertising and promotions	2,906				2,371			2,138			535			768
Data processing	5,661				5,206			5,042			455			619
Other real estate owned	48				12			75			36			(27	)
Regulatory assessments and insurance	1,702				1,879			1,037			(177	)		665
Core deposit intangibles amortization	2,488				2,488			2,613			—			(125	)
Other expenses	13,960				12,646			16,521			1,314			(2,561	)
Total non-interest expense	$	100,082			96,585			94,764			3,497			5,318

Total non-interest expense of $100 million for the current quarter increased $3.5 million, or 4 percent, over the prior quarter and increased $5.3 million, or 6 percent, over the prior year second quarter. Excluding deferred compensation from originating PPP loans, total non-interest expense was $102 million for the current and prior quarter compared to $103 million in the prior year second quarter. Compensation and employee benefits increased $1.6 million, or 3 percent, from the prior quarter and increased $6.1 million from the prior year second quarter which was primarily driven by the decrease in deferred compensation on originating PPP loans. Deferred compensation from originating PPP loans was $1.5 million in the current quarter compared to $5.2 million in the prior quarter and $8.4 million in the prior year second quarter.

Regulatory assessment and insurance increased $665 thousand from the prior year second quarter primarily due to an accrual adjustment for the State of Montana regulatory semi-annual assessment which was waived for the first half of 2020. Other expenses of $14.0 million, increased $1.3 million, or 10 percent, from the prior quarter and decreased $2.6 million, or 16 percent, from the prior year second quarter with such changes driven by acquisition-related expenses. Current quarter other expenses included acquisition-related expenses of $1.1 million in the current quarter compared to $104 thousand in the prior quarter and $3.7 million in the prior year second quarter.

Federal and State Income Tax ExpenseTax expense during the second quarter of 2021 was $18.9 million, a decrease of $563 thousand, or 3 percent, compared to the prior quarter and an increase of $4.6 million, or 32 percent, from the prior year second quarter. The effective tax rate in the current quarter was 19.6 compared to 19.4 in the prior quarter and 18.4 percent in the prior year second quarter.

Efficiency RatioThe efficiency ratio was 49.92 percent in the current quarter and 46.75 percent in the prior quarter and 47.54 in the prior year second quarter. “Once again, the Bank divisions were excellent in controlling non-interest expenses,” said Ron Copher, Chief Financial Officer. Excluding the impact from the PPP loans, the efficiency ratio would have been 53.53 percent in the current quarter compared to 52.89 percent in the prior quarter. The 64 basis points increase from the prior quarter was due to the decrease in gain on sale of loans in the current quarter. Excluding the impact of PPP loans, the current quarter efficiency ratio was a decrease of 39 basis points from the prior year second quarter efficiency ratio of 53.92 percent.

Operating Results for Six Months Ended June 30, 2021Compared to June 30, 2020

Income Summary

	Six Months ended
(Dollars in thousands)	Jun 30,2021				Jun 30,2020				$ Change				% Change
Net interest income
Interest income	$	321,508			$	298,269			$	23,239			8	%
Interest expense	9,227				15,681				(6,454		)		(41	)%
Total net interest income	312,281				282,588				29,693				11	%
Non-interest income
Service charges and other fees	26,587				25,386				1,201				5	%
Miscellaneous loan fees and charges	5,701				2,967				2,734				92	%
Gain on sale of loans	37,730				37,720				10				—	%
Gain on sale of investments	223				991				(768		)		(77	)%
Other income	5,402				7,432				(2,030		)		(27	)%
Total non-interest income	75,643				74,496				1,147				2	%
Total Income	$	387,924			$	357,084			$	30,840			9	%
Net interest margin (tax-equivalent)	3.58		%		4.23		%

Net Interest IncomeNet-interest income of $312 million for the first half of 2021 increased $29.7 million, or 11 percent, over the same period in 2020. Interest income of $322 million for the first six months of the current year increased $23.2 million, or 8 percent, from the prior year and was primarily attributable to a $19.3 million increase in income from commercial loans, including $16.5 million from the PPP loans. Additionally, interest income on debt securities increased $9.2 million, or 20 percent, over the prior year which resulted from the increased volume of debt securities. Interest expense of $9.2 million for the first half of 2021 decreased $6.5 million, or 41 percent over the prior year primarily as a result of a decrease in the cost of deposits. The total funding cost (including non-interest bearing deposits) for the first six months of 2021 was 11 basis points, which decreased 14 basis points compared to 25 basis points in first six months of 2020.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2021 was 3.58 percent, a 65 basis points decrease from the net interest margin of 4.23 percent for the same period in the prior year. The core net interest margin, excluding 4 basis points of discount accretion, 1 basis point of non-accrual interest and 10 basis points increase from the PPP loans, was 3.43 which was an 83 basis point decrease from the core margin of 4.26 percent in the prior year. Although the Company was successful in reducing the total cost of funding, it was not enough to outpace the decrease in yields on loans and debt securities driven by the current interest rate environment and the shift in the earning asset mix to lower yielding debt securities.

Non-interest IncomeNon-interest income of $75.6 million for the first half of 2021 increased $1.1 million, or 2 percent, over the same period last year. Service charges and other fees of $26.6 million for the first six months of 2021 increased $1.2 million, or 5 percent, from prior year as a result of additional fees from increased customer accounts and transaction activity. Miscellaneous loan fees and charges increased $2.7 million, or 92 percent, driven by increases in loan servicing income and credit card interchange fees due to increased activity. Other income of $5.4 million decreased $2.0 million from the prior year and was primarily the result of a gain of $2.4 million on the sale of a former branch building in the first quarter of 2020.

Non-interest Expense Summary

	Six Months ended
(Dollars in thousands)	Jun 30,2021				Jun 30,2020				$ Change				% Change
Compensation and employee benefits	$	126,577			$	117,641			$	8,936			8	%
Occupancy and equipment	18,723				18,576				147				1	%
Advertising and promotions	5,277				4,625				652				14	%
Data processing	10,867				10,324				543				5	%
Other real estate owned	60				187				(127		)		(68	)%
Regulatory assessments and insurance	3,581				2,127				1,454				68	%
Core deposit intangibles amortization	4,976				5,146				(170		)		(3	)%
Other expenses	26,606				31,625				(5,019		)		(16	)%
Total non-interest expense	$	196,667			$	190,251			$	6,416			3	%

Total non-interest expense of $197 million for the first half of 2021 increased $6.4 million, or 3 percent, over the prior year first half. Compensation and employee benefits for the first six months of 2021 increased $8.9 million, or 8 percent, from last year due to the increased number of employees from organic growth, increased real estate commissions, increased performance-related compensation and annual salary increases. Regulatory assessment and insurance for the first half of 2021 increased $1.5 million from the prior year same period primarily as a result of the State of Montana waiving the first semi-annual regulatory assessment of 2020 and Small Bank assessment credits applied by the FDIC in the first quarter of 2020. Other expenses of $26.6 million, decreased $5.0 million, or 16 percent, from the prior year, primarily from a decrease in acquisition-related expenses. Acquisition-related expenses were $1.1 million in the current year compared to $6.5 million in the prior year.

Provision for Credit Losses

The provision for credit loss benefit was $5.6 million for the first six months of 2021, including provision for credit loss benefit of $5.2 million on the loan portfolio and credit loss benefit of $371 thousand on unfunded loan commitments. The provision for credit loss benefit of $5.2 million on the loan portfolio in the current year decreased $41.5 million over the provision for credit loss expense of $36.3 million in the prior year which was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the current year were $1.6 million compared to $2.0 million during the prior year.

Federal and State Income Tax ExpenseTax expense of $38.4 million in the first six months of 2021 increased $14.5 million, or 61 percent, over the prior year same period. The effective tax rate for 2021 was 19.5 percent compared to 18.3 percent in the prior year.

Efficiency RatioThe efficiency ratio was 48.31 percent for the first six months of 2021 compared to 50.86 percent for the same period last year. Excluding the impact from the PPP loans, the efficiency ratio was 53.21 in 2021 compared to 54.21 in 2020 with the improvement driven by an increase in investment interest income and a decrease in deposit interest expense.

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

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

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

Conference Call InformationA conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, July 23, 2021. The conference call will be accessible by telephone and webcast. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 7591544. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/nsp6p5ro. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 7591544 by July 30, 2021.

About Glacier Bancorp, Inc.Glacier Bancorp, Inc. (NASDAQ: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: Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), North Cascades Bank (Chelan, WA), The Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), and Western Security Bank (Billings, MT).

CONTACT: Randall M. Chesler, CEO

(406) 751-4722

Ron J. Copher, CFO

(406) 751-7706

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

(Dollars in thousands, except per share data)	Jun 30,2021				Mar 31,2021			Dec 31,2020			Jun 30,2020
Assets
Cash on hand and in banks	$	272,363			227,745			227,108			212,681
Interest bearing cash deposits	648,844				650,705			406,034			334,929
Cash and cash equivalents	921,207				878,450			633,142			547,610
Debt securities, available-for-sale	6,147,143				5,853,315			5,337,814			3,533,950
Debt securities, held-to-maturity	1,024,730				588,751			189,836			203,275
Total debt securities	7,171,873				6,442,066			5,527,650			3,737,225
Loans held for sale, at fair value	98,410				118,731			166,572			115,345
Loans receivable	11,238,048				11,269,929			11,122,696			11,453,378
Allowance for credit losses	(151,448		)		(156,446	)		(158,243	)		(162,509	)
Loans receivable, net	11,086,600				11,113,483			10,964,453			11,290,869
Premises and equipment, net	315,573				322,354			325,335			326,005
Other real estate owned	771				2,965			1,744			4,743
Accrued interest receivable	70,452				79,331			75,497			77,363
Core deposit intangible, net	50,533				53,021			55,509			60,733
Goodwill	514,013				514,013			514,013			513,355
Non-marketable equity securities	10,019				10,022			10,023			11,592
Bank-owned life insurance	123,035				122,843			123,763			122,388
Other assets	125,547				113,273			106,505			99,420
Total assets	$	20,488,033			19,770,552			18,504,206			16,906,648
Liabilities
Non-interest bearing deposits	$	6,307,794			6,040,440			5,454,539			5,043,704
Interest bearing deposits	10,453,098				10,063,884			9,342,990			8,337,828
Securities sold under agreements to repurchase	995,201				996,878			1,004,583			881,227
FHLB advances	—				—			—			37,963
Other borrowed funds	33,556				33,452			33,068			32,546
Subordinated debentures	132,540				132,499			139,959			139,917
Accrued interest payable	2,433				2,590			3,305			4,211
Deferred tax liability	6,463				3,116			23,860			25,213
Other liabilities	202,993				202,308			194,861			200,324
Total liabilities	18,134,078				17,475,167			16,197,165			14,702,933
Commitments and Contingent Liabilities
Stockholders’ Equity
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding	—				—			—			—
Common stock, $0.01 par value per share, 117,187,500 shares authorized	955				955			954			954
Paid-in capital	1,496,488				1,495,438			1,495,053			1,492,817
Retained earnings - substantially restricted	766,070				719,072			667,944			580,035
Accumulated other comprehensive income	90,442				79,920			143,090			129,909
Total stockholders’ equity	2,353,955				2,295,385			2,307,041			2,203,715
Total liabilities and stockholders’ equity	$	20,488,033			19,770,552			18,504,206			16,906,648

Glacier Bancorp, Inc.Unaudited Condensed Consolidated Statements of Operations

	Three Months ended										Six Months ended
(Dollars in thousands, except per share data)	Jun 30,2021				Mar 31,2021			Jun 30,2020			Jun 30,2021			Jun 30,2020
Interest Income
Debt securities	$	28,730			27,306			25,833			56,036			46,847
Residential real estate loans	9,541				10,146			12,098			19,687			23,624
Commercial loans	110,829				113,541			106,343			224,370			205,027
Consumer and other loans	10,856				10,559			11,130			21,415			22,771
Total interest income	159,956				161,552			155,404			321,508			298,269
Interest Expense
Deposits	2,804				3,014			4,587			5,818			10,168
Securities sold under agreements to repurchase	651				689			908			1,340			1,897
Federal Home Loan Bank advances	—				—			268			—			614
Other borrowed funds	177				174			172			351			300
Subordinated debentures	855				863			1,250			1,718			2,702
Total interest expense	4,487				4,740			7,185			9,227			15,681
Net Interest Income	155,469				156,812			148,219			312,281			282,588
Provision for credit losses	(5,653		)		48			16,929			(5,605	)		36,114
Net interest income after provision for credit losses	161,122				156,764			131,290			317,886			246,474
Non-Interest Income
Service charges and other fees	13,795				12,792			11,366			26,587			25,386
Miscellaneous loan fees and charges	2,923				2,778			1,682			5,701			2,967
Gain on sale of loans	16,106				21,624			25,858			37,730			37,720
(Loss) gain on sale of debt securities	(61		)		284			128			223			991
Other income	2,759				2,643			2,190			5,402			7,432
Total non-interest income	35,522				40,121			41,224			75,643			74,496
Non-Interest Expense
Compensation and employee benefits	64,109				62,468			57,981			126,577			117,641
Occupancy and equipment	9,208				9,515			9,357			18,723			18,576
Advertising and promotions	2,906				2,371			2,138			5,277			4,625
Data processing	5,661				5,206			5,042			10,867			10,324
Other real estate owned	48				12			75			60			187
Regulatory assessments and insurance	1,702				1,879			1,037			3,581			2,127
Core deposit intangibles amortization	2,488				2,488			2,613			4,976			5,146
Other expenses	13,960				12,646			16,521			26,606			31,625
Total non-interest expense	100,082				96,585			94,764			196,667			190,251
Income Before Income Taxes	96,562				100,300			77,750			196,862			130,719
Federal and state income tax expense	18,935				19,498			14,306			38,433			23,936
Net Income	$	77,627			80,802			63,444			158,429			106,783

Glacier Bancorp, Inc.Average Balance Sheets

	Three Months ended
	June 30, 2021											March 31, 2021
(Dollars in thousands)	AverageBalance				Interest &Dividends				AverageYield/Rate			AverageBalance				Interest &Dividends				AverageYield/Rate
Assets
Residential real estate loans	$	825,467			$	9,541			4.62	%		$	893,052			$	10,146			4.54	%
Commercial loans 1	9,520,603				112,226				4.73	%		9,412,281				114,928				4.95	%
Consumer and other loans	964,415				10,856				4.51	%		949,736				10,559				4.51	%
Total loans 2	11,310,485				132,623				4.70	%		11,255,069				135,633				4.89	%
Tax-exempt debt securities 2	1,548,323				14,740				3.81	%		1,545,484				14,710				3.81	%
Taxable debt securities 4	5,810,800				17,251				1.19	%		4,713,936				15,851				1.35	%
Total earning assets	18,669,608				164,614				3.54	%		17,514,489				166,194				3.85	%
Goodwill and intangibles	565,749											568,222
Non-earning assets	804,897											843,305
Total assets	$	20,040,254										$	18,926,016
Liabilities
Non-interest bearing deposits	$	6,100,872			$	—			—	%		$	5,591,531			$	—			—	%
NOW and DDA accounts	4,073,819				600				0.06	%		3,830,856				570				0.06	%
Savings accounts	2,295,334				141				0.02	%		2,092,517				138				0.03	%
Money market deposit accounts	2,921,642				861				0.12	%		2,719,267				865				0.13	%
Certificate accounts	955,694				1,181				0.50	%		971,584				1,422				0.59	%
Total core deposits	16,347,361				2,783				0.07	%		15,205,755				2,995				0.08	%
Wholesale deposits 5	34,301				21				0.24	%		38,076				19				0.20	%
Repurchase agreements	974,744				651				0.27	%		1,001,394				689				0.28	%
FHLB advances	—				—				—	%		—				—				—	%
Subordinated debentures and other borrowed funds	166,002				1,032				2.49	%		165,830				1,037				2.54	%
Total funding liabilities	17,522,408				4,487				0.10	%		16,411,055				4,740				0.12	%
Other liabilities	168,613											193,858
Total liabilities	17,691,021											16,604,913
Stockholders’ Equity
Common stock	955											955
Paid-in capital	1,495,886											1,495,138
Retained earnings	756,561											710,137
Accumulated other comprehensive income	95,831											114,873
Total stockholders’ equity	2,349,233											2,321,103
Total liabilities and stockholders’ equity	$	20,040,254										$	18,926,016
Net interest income (tax-equivalent)					$	160,127										$	161,454
Net interest spread (tax-equivalent)									3.44	%										3.73	%
Net interest margin (tax-equivalent)									3.44	%										3.74	%

______________________________1 Includes tax effect of $1.4 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2021 and March 31, 2021, respectively.2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.3 Includes tax effect of $3.0 million and $3.0 million on tax-exempt debt securities income for the three months ended June 30, 2021 and March 31, 2021, respectively.4 Includes tax effect of $255 thousand and $255 thousand on federal income tax credits for the three months ended June 30, 2021 and March 31, 2021, respectively.5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.Average Balance Sheets (continued)

	Three Months ended
	June 30, 2021											June 30, 2020
(Dollars in thousands)	AverageBalance				Interest &Dividends				AverageYield/Rate			AverageBalance				Interest &Dividends				AverageYield/Rate
Assets
Residential real estate loans	$	825,467			$	9,541			4.62	%		$	1,048,095			$	12,098			4.62	%
Commercial loans 1	9,520,603				112,226				4.73	%		9,235,881				107,632				4.69	%
Consumer and other loans	964,415				10,856				4.51	%		957,798				11,130				4.67	%
Total loans 2	11,310,485				132,623				4.70	%		11,241,774				130,860				4.68	%
Tax-exempt debt securities 3	1,548,323				14,740				3.81	%		1,401,603				14,248				4.07	%
Taxable debt securities 4	5,810,800				17,251				1.19	%		2,266,707				14,730				2.60	%
Total earning assets	18,669,608				164,614				3.54	%		14,910,084				159,838				4.31	%
Goodwill and intangibles	565,749											575,296
Non-earning assets	804,897											797,403
Total assets	$	20,040,254										$	16,282,783
Liabilities
Non-interest bearing deposits	$	6,100,872			$	—			—	%		$	4,733,485			$	—			—	%
NOW and DDA accounts	4,073,819				600				0.06	%		3,018,706				687				0.09	%
Savings accounts	2,295,334				141				0.02	%		1,687,448				175				0.04	%
Money market deposit accounts	2,921,642				861				0.12	%		2,300,787				1,240				0.22	%
Certificate accounts	955,694				1,181				0.50	%		1,013,188				2,408				0.96	%
Total core deposits	16,347,361				2,783				0.07	%		12,753,614				4,510				0.14	%
Wholesale deposits 5	34,301				21				0.24	%		68,503				77				0.46	%
Repurchase agreements	974,744				651				0.27	%		740,748				908				0.49	%
FHLB advances	—				—				—	%		182,061				268				0.58	%
Subordinated debentures and other borrowed funds	166,002				1,032				2.49	%		172,996				1,422				3.31	%
Total funding liabilities	17,522,408				4,487				0.10	%		13,917,922				7,185				0.21	%
Other liabilities	168,613											180,935
Total liabilities	17,691,021											14,098,857
Stockholders’ Equity
Common stock	955											954
Paid-in capital	1,495,886											1,492,230
Retained earnings	756,561											575,455
Accumulated other comprehensive income	95,831											115,287
Total stockholders’ equity	2,349,233											2,183,926
Total liabilities and stockholders’ equity	$	20,040,254										$	16,282,783
Net interest income (tax-equivalent)					$	160,127										$	152,653
Net interest spread (tax-equivalent)									3.44	%										4.10	%
Net interest margin (tax-equivalent)									3.44	%										4.12	%

______________________________1 Includes tax effect of $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2021 and 2020, respectively.2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.3 Includes tax effect of $3.0 million and $2.9 million on tax-exempt debt securities income for the three months ended June 30, 2021 and 2020, respectively.4 Includes tax effect of $255 thousand and $266 thousand on federal income tax credits for the three months ended June 30, 2021 and 2020, respectively.5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.Average Balance Sheets (continued)

	Six Months ended
	June 30, 2021											June 30, 2020
(Dollars in thousands)	AverageBalance				Interest &Dividends				AverageYield/Rate			AverageBalance				Interest &Dividends				AverageYield/Rate
Assets
Residential real estate loans	$	859,073			$	19,687			4.58	%		$	1,014,371			$	23,624			4.66	%
Commercial loans 1	9,466,763				227,154				4.84	%		8,522,681				207,588				4.90	%
Consumer and other loans	957,116				21,415				4.51	%		942,361				22,771				4.86	%
Total loans 2	11,282,952				268,256				4.79	%		10,479,413				253,983				4.87	%
Tax-exempt debt securities 3	1,546,912				29,450				3.81	%		1,166,102				23,657				4.06	%
Taxable debt securities 4	5,265,398				33,102				1.26	%		2,163,144				28,502				2.64	%
Total earning assets	18,095,262				330,808				3.69	%		13,808,659				306,142				4.46	%
Goodwill and intangibles	566,979											557,363
Non-earning assets	823,973											743,871
Total assets	$	19,486,214										$	15,109,893
Liabilities
Non-interest bearing deposits	$	5,847,608			$	—			—	%		$	4,203,222			$	—			—	%
NOW and DDA accounts	3,953,009				1,170				0.06	%		2,846,928				1,602				0.11	%
Savings accounts	2,194,485				279				0.03	%		1,603,129				414				0.05	%
Money market deposit accounts	2,821,014				1,726				0.12	%		2,166,293				2,864				0.27	%
Certificate accounts	963,595				2,603				0.54	%		989,548				5,003				1.02	%
Total core deposits	15,779,711				5,778				0.07	%		11,809,120				9,883				0.17	%
Wholesale deposits 5	36,178				40				0.22	%		62,806				285				0.91	%
Repurchase agreements	987,995				1,340				0.27	%		641,785				1,897				0.59	%
FHLB advances	—				—				—	%		145,366				614				0.84	%
Subordinated debentures and other borrowed funds	165,917				2,069				2.51	%		171,481				3,002				3.52	%
Total funding liabilities	16,969,801				9,227				0.11	%		12,830,558				15,681				0.25	%
Other liabilities	181,166											164,148
Total liabilities	17,150,967											12,994,706
Stockholders’ Equity
Common stock	955											944
Paid-in capital	1,495,514											1,454,617
Retained earnings	733,478											569,203
Accumulated other comprehensive income	105,300											90,423
Total stockholders’ equity	2,335,247											2,115,187
Total liabilities and stockholders’ equity	$	19,486,214										$	15,109,893
Net interest income (tax-equivalent)					$	321,581										$	290,461
Net interest spread (tax-equivalent)									3.58	%										4.21	%
Net interest margin (tax-equivalent)									3.58	%										4.23	%

______________________________1 Includes tax effect of $2.8 million and $2.6 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2021 and 2020, respectively.2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.3 Includes tax effect of $6.0 million and $4.8 million on tax-exempt debt securities income for the six months ended June 30, 2021 and 2020, respectively.4 Includes tax effect of $510 thousand and $532 thousand on federal income tax credits for the six months ended June 30, 2021 and 2020, respectively.5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.Loan Portfolio by Regulatory Classification

	Loans Receivable, by Loan Type																% Change from
(Dollars in thousands)	Jun 30,2021				Mar 31,2021				Dec 31,2020				Jun 30,2020				Mar 31,2021			Dec 31,2020			Jun 30,2020
Custom and owner occupied construction	$	158,405			$	153,226			$	157,529			$	177,172			3	%		1	%		(11	)%
Pre-sold and spec construction	163,740				154,312				148,845				161,964				6	%		10	%		1	%
Total residential construction	322,145				307,538				306,374				339,136				5	%		5	%		(5	)%
Land development	111,736				103,960				102,930				94,667				7	%		9	%		18	%
Consumer land or lots	138,292				133,409				123,747				120,015				4	%		12	%		15	%
Unimproved land	63,469				62,002				59,500				63,459				2	%		7	%		—	%
Developed lots for operative builders	27,143				27,310				30,449				26,647				(1	)%		(11	)%		2	%
Commercial lots	64,664				61,289				60,499				60,563				6	%		7	%		7	%
Other construction	554,548				604,326				555,375				477,922				(8	)%		—	%		16	%
Total land, lot, and other construction	959,852				992,296				932,500				843,273				(3	)%		3	%		14	%
Owner occupied	2,019,860				1,973,309				1,945,686				1,855,994				2	%		4	%		9	%
Non-owner occupied	2,436,672				2,372,644				2,290,512				2,238,586				3	%		6	%		9	%
Total commercial real estate	4,456,532				4,345,953				4,236,198				4,094,580				3	%		5	%		9	%
Commercial and industrial	1,654,237				1,883,438				1,850,197				2,342,081				(12	)%		(11	)%		(29	)%
Agriculture	746,678				728,579				721,490				714,227				2	%		3	%		5	%
1st lien	1,105,579				1,130,339				1,228,867				1,227,514				(2	)%		(10	)%		(10	)%
Junior lien	38,029				35,230				41,641				47,121				8	%		(9	)%		(19	)%
Total 1-4 family	1,143,608				1,165,569				1,270,508				1,274,635				(2	)%		(10	)%		(10	)%
Multifamily residential	398,499				380,172				391,895				343,870				5	%		2	%		16	%
Home equity lines of credit	693,135				664,800				657,626				655,492				4	%		5	%		6	%
Other consumer	201,336				191,152				190,186				181,402				5	%		6	%		11	%
Total consumer	894,471				855,952				847,812				836,894				5	%		6	%		7	%
States and political subdivisions	631,199				546,086				575,647				581,673				16	%		10	%		9	%
Other	129,237				183,077				156,647				198,354				(29	)%		(17	)%		(35	)%
Total loans receivable, including loans held for sale	11,336,458				11,388,660				11,289,268				11,568,723				—	%		—	%		(2	)%
Less loans held for sale 1	(98,410		)		(118,731		)		(166,572		)		(115,345		)		(17	)%		(41	)%		(15	)%
Total loans receivable	$	11,238,048			$	11,269,929			$	11,122,696			$	11,453,378			—	%		1	%		(2	)%

______________________________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-AccrualLoans			AccruingLoans 90Daysor More PastDue			OtherReal EstateOwned
(Dollars in thousands)	Jun 30,2021				Mar 31,2021			Dec 31,2020			Jun 30,2020			Jun 30,2021			Jun 30,2021			Jun 30,2021
Custom and owner occupied construction	$	243			246			247			440			243			—			—
Land development	279				330			342			659			31			—			248
Consumer land or lots	190				325			201			427			190			—			—
Unimproved land	178				243			294			663			178			—			—
Commercial lots	368				368			368			529			—			—			368
Total land, lot and other construction	1,015				1,266			1,205			2,278			399			—			616
Owner occupied	3,747				5,272			6,725			9,424			3,716			31			—
Non-owner occupied	1,892				4,615			4,796			5,482			1,892			—			—
Total commercial real estate	5,639				9,887			11,521			14,906			5,608			31			—
Commercial and Industrial	6,046				6,100			6,689			5,039			5,419			597			30
Agriculture	31,742				8,392			6,313			11,087			28,787			2,955			—
1st lien	4,186				4,303			5,353			7,634			3,754			432			—
Junior lien	272				290			301			746			247			25			—
Total 1-4 family	4,458				4,593			5,654			8,380			4,001			457			—
Multifamily residential	—				—			—			92			—			—			—
Home equity lines of credit	2,653				3,614			2,939			3,048			2,529			36			88
Other consumer	542				1,017			572			412			406			99			37
Total consumer	3,195				4,631			3,511			3,460			2,935			135			125
Other	703				1,470			293			289			658			45			—
Total	$	53,041			36,585			35,433			45,971			48,050			4,220			771

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

	Accruing 30-89 Days Delinquent Loans,  by Loan Type																% Change from
(Dollars in thousands)	Jun 30,2021				Mar 31,2021				Dec 31,2020				Jun 30,2020				Mar 31,2021			Dec 31,2020			Jun 30,2020
Custom and owner occupied construction	$	—			$	963			$	788			$	—			(100	)%		(100	)%		n/m
Pre-sold and spec construction	70				—				—				—				n/m			n/m			n/m
Total residential construction	70				963				788				—				(93	)%		(91	)%		n/m
Land development	—				—				202				—				n/m			(100	)%		n/m
Consumer land or lots	—				215				71				248				(100	)%		(100	)%		(100	)%
Unimproved land	307				334				357				411				(8	)%		(14	)%		(25	)%
Developed lots for operative builders	—				—				306				—				n/m			(100	)%		n/m
Commercial lots	—				—				—				153				n/m			n/m			(100	)%
Other construction	—				1,520				—				—				(100	)%		n/m			n/m
Total land, lot and other construction	307				2,069				936				812				(85	)%		(67	)%		(62	)%
Owner occupied	2,243				1,784				3,432				1,512				26	%		(35	)%		48	%
Non-owner occupied	574				2,407				149				966				(76	)%		285	%		(41	)%
Total commercial real estate	2,817				4,191				3,581				2,478				(33	)%		(21	)%		14	%
Commercial and industrial	2,947				2,063				1,814				4,127				43	%		62	%		(29	)%
Agriculture	837				25,458				1,553				12,084				(97	)%		(46	)%		(93	)%
1st lien	736				5,984				6,677				656				(88	)%		(89	)%		12	%
Junior lien	106				18				55				160				489	%		93	%		(34	)%
Total 1-4 family	842				6,002				6,732				816				(86	)%		(87	)%		3	%
Home equity lines of credit	1,942				1,223				2,840				3,330				59	%		(32	)%		(42	)%
Other consumer	919				519				1,054				739				77	%		(13	)%		24	%
Total consumer	2,861				1,742				3,894				4,069				64	%		(27	)%		(30	)%
States and political subdivisions	—				375				2,358				124				(100	)%		(100	)%		(100	)%
Other	1,395				1,753				1,065				715				(20	)%		31	%		95	%
Total	$	12,076			$	44,616			$	22,721			$	25,225			(73	)%		(47	)%		(52	)%

______________________________n/m - not measurable

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

	Net Charge-Offs (Recoveries), Year-to-DatePeriod Ending, By Loan Type													Charge-Offs			Recoveries
(Dollars in thousands)	Jun 30,2021				Mar 31,2021			Dec 31,2020			Jun 30,2020			Jun 30,2021			Jun 30,2021
Custom and owner occupied construction	$	—			—			(9	)		—			—			—
Pre-sold and spec construction	(8		)		(7	)		(24	)		(12	)		—			8
Total residential construction	(8		)		(7	)		(33	)		(12	)		—			8
Land development	(77		)		(75	)		(106	)		(50	)		—			77
Consumer land or lots	(164		)		(141	)		(221	)		(17	)		3			167
Unimproved land	(21		)		(21	)		(489	)		(287	)		—			21
Commercial lots	—				—			(55	)		(3	)		—			—
Total land, lot and other construction	(262		)		(237	)		(871	)		(357	)		3			265
Owner occupied	(70		)		(54	)		(168	)		(49	)		41			111
Non-owner occupied	(503		)		(505	)		3,030			115			—			503
Total commercial real estate	(573		)		(559	)		2,862			66			41			614
Commercial and industrial	(218		)		80			1,533			576			262			480
Agriculture	(6		)		(1	)		337			33			4			10
1st lien	(237		)		5			69			—			42			279
Junior lien	(475		)		(47	)		(211	)		(129	)		—			475
Total 1-4 family	(712		)		(42	)		(142	)		(129	)		42			754
Multifamily residential	(40		)		—			(244	)		(43	)		—			40
Home equity lines of credit	(23		)		25			101			24			41			64
Other consumer	74				46			307			161			241			167
Total consumer	51				71			408			185			282			231
Other	3,329				2,981			3,803			1,727			5,312			1,983
Total	$	1,561			2,286			7,653			2,046			5,946			4,385

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