There were 750 press releases posted in the last 24 hours and 392,025 in the last 365 days.

Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended September 30, 2023

3rd Quarter 2023 Highlights:

  • Net income was $52.4 million for the current quarter, a decrease of $2.6 million, or 5 percent, from the prior quarter net income of $55.0 million. Net income for the current quarter decreased $26.9 million, or 34 percent, from the prior year third quarter net income of $79.3 million.
  • Interest income of $265 million in the current quarter increased $17.5 million, or 7 percent, over the prior quarter interest income of $247 million. Interest income in the current quarter increased $50.5 million, or 24 percent, over the prior year third quarter.
  • Total deposits and retail repurchase agreements of $21.895 billion at the current quarter end increased $530 million, or 10 percent annualized, during the current quarter.
  • Non-interest bearing deposits remained stable in the current quarter with a $7.0 million increase over the prior quarter.
  • The loan portfolio of $16.135 billion increased $180 million, or 5 percent annualized, during the current quarter.
  • The loan yield for the current quarter of 5.27 percent, increased 15 basis points, compared to 5.12 percent in the prior quarter and increased 60 basis points from the prior year third quarter loan yield of 4.67 percent.
  • Early stage delinquencies (accruing loans 30-89 days past due) of $15.3 million at September 30, 2023 decreased $9.6 million from the prior quarter.
  • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 154 consecutive quarterly dividends and has increased the dividend 49 times.
  • The Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank, a leading eastern Washington community bank headquartered in Spokane with total assets of $763 million as of September 30, 2023. This will be the Company’s 25th acquisition since 2000.

Year-to-date 2023 Highlights

  • Net Income for the first nine months of 2023 was $169 million, a decrease of $54.9 million, or 25 percent, from the $224 million for the prior year first nine months net income.
  • Interest income for the first nine months of 2023 was $744 million, an increase of $139 million, or 23 percent over the first nine months of the prior year interest income of $605 million.
  • Total core deposits and retail repurchase agreements of $21.827 billion at the current quarter end increased $307 million, or 1 percent, during the first nine months of 2023.
  • The loan portfolio of $16.135 billion increased $888 million, or 8 percent annualized, during the first nine months of the current year. The loan portfolio, excluding the Paycheck Protection Program (“PPP”) loans, increased $1.578 billion, or 16 percent annualized, during the first nine months of the prior year.
  • The loan yield was 5.14 percent for the first nine months of the current year, an increase of 54 basis points from the first nine months of the prior year loan yield of 4.60 percent.
  • Stockholders’ equity of $2.875 billion increased $31.3 million, or 1 percent, during the first nine months of the current year.
  • Dividends declared in the first nine months of 2023 were $0.99 per share.

Financial Summary

  At or for the Three Months ended   At or for the Nine Months ended
(Dollars in thousands, except per share and market data) Sep 30,
2023
  Jun 30,
2023
  Mar 31,
2023
  Sep 30,
2022
  Sep 30,
2023
  Sep 30,
2022
Operating results                      
Net income $ 52,445     54,955     61,211     79,338     168,611     223,525  
Basic earnings per share $ 0.47     0.50     0.55     0.72     1.52     2.02  
Diluted earnings per share $ 0.47     0.50     0.55     0.72     1.52     2.02  
Dividends declared per share $ 0.33     0.33     0.33     0.33     0.99     0.99  
Market value per share                      
Closing $ 28.50     31.17     42.01     49.13     28.50     49.13  
High $ 36.45     42.21     50.03     56.10     50.03     60.69  
Low $ 26.84     26.77     37.07     46.08     26.77     44.43  
Selected ratios and other data                      
Number of common stock shares outstanding   110,879,365     110,873,887     110,868,713     110,766,954     110,879,365     110,766,954  
Average outstanding shares - basic   110,877,534     110,870,964     110,824,648     110,766,502     110,857,788     110,752,231  
Average outstanding shares - diluted   110,886,959     110,875,535     110,881,708     110,833,594     110,882,718     110,811,267  
Return on average assets (annualized)   0.75 %   0.81 %   0.93 %   1.18 %   0.83 %   1.13 %
Return on average equity (annualized)   7.12 %   7.52 %   8.54 %   10.94 %   7.72 %   10.14 %
Efficiency ratio   63.31 %   62.73 %   60.39 %   52.76 %   62.10 %   55.14 %
Dividend payout   70.21 %   66.00 %   60.00 %   45.83 %   65.13 %   49.01 %
Loan to deposit ratio   79.25 %   79.92 %   77.09 %   67.98 %   79.25 %   67.98 %
Number of full time equivalent employees   3,314     3,369     3,390     3,396     3,314     3,396  
Number of locations   221     222     222     222     221     222  
Number of ATMs   274     274     263     272     274     272  


KALISPELL, Mont., Oct. 19, 2023 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $52.4 million for the current quarter, a decrease of $26.9 million, or 34 percent, from the $79.3 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.47 per share, a decrease of 35 percent from the prior year third quarter diluted earnings per share of $0.72. The decrease in net income compared to the prior quarter and prior year third quarter was primarily due to the continued increase in funding costs, which has outpaced the increase in interest income. “Our strong core deposit growth in the quarter shows the strength of our business model and employees. We were able to significantly grow deposits this quarter by leveraging existing banking relationships across all of our divisions,” said Randy Chesler, President and Chief Executive Officer. “We were also pleased to see the increase in interest income for the quarter, reflecting higher yields on loans and investments.”

Net income for the nine months ended September 30, 2023 was $169 million, a decrease of $54.9 million, or 25 percent, from the $224 million for the first nine months in the prior year, which was primarily driven by the increase in funding costs outpacing the increase in interest income. Diluted earnings per share for the first nine months of 2023 was $1.52 per share, a decrease of 25 percent from the prior year first nine months diluted earnings per share of $2.02.

On August 8, 2023, the Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, “Wheatland”), headquartered in Spokane, Washington. Wheatland has 14 branches in eastern Washington with total assets of $763 million, total loans of $491 million and total deposits of $609 million as of September 30, 2023. The acquisition is subject to required regulatory and shareholder approvals and other customary conditions of closing and is expected to be completed in the fourth quarter of 2023.

Asset Summary

                  $ Change from
(Dollars in thousands) Sep 30,
2023
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
Cash and cash equivalents $ 1,672,094     1,051,320     401,995     425,212     620,774     1,270,099     1,246,882  
Debt securities, available-for-sale   4,741,738     4,999,820     5,307,307     5,755,076     (258,082 )   (565,569 )   (1,013,338 )
Debt securities, held-to-maturity   3,553,805     3,608,289     3,715,052     3,756,634     (54,484 )   (161,247 )   (202,829 )
Total debt securities   8,295,543     8,608,109     9,022,359     9,511,710     (312,566 )   (726,816 )   (1,216,167 )
Loans receivable                          
Residential real estate   1,653,777     1,588,175     1,446,008     1,368,368     65,602     207,769     285,409  
Commercial real estate   10,292,446     10,220,751     9,797,047     9,582,989     71,695     495,399     709,457  
Other commercial   2,916,785     2,888,810     2,799,668     2,729,717     27,975     117,117     187,068  
Home equity   869,963     862,240     822,232     793,556     7,723     47,731     76,407  
Other consumer   402,075     394,986     381,857     376,603     7,089     20,218     25,472  
Loans receivable   16,135,046     15,954,962     15,246,812     14,851,233     180,084     888,234     1,283,813  
Allowance for credit losses   (192,271 )   (189,385 )   (182,283 )   (178,191 )   (2,886 )   (9,988 )   (14,080 )
Loans receivable, net   15,942,775     15,765,577     15,064,529     14,673,042     177,198     878,246     1,269,733  
Other assets   2,153,149     2,102,673     2,146,492     2,122,990     50,476     6,657     30,159  
Total assets $ 28,063,561     27,527,679     26,635,375     26,732,954     535,882     1,428,186     1,330,607  


Total debt securities of $8.296 billion at September 30, 2023 decreased $313 million, or 4 percent, during the current quarter and decreased $1.216 billion, or 13 percent, from the prior year third quarter. The Company continues to utilize cash flow from the securities portfolio to primarily fund loan growth and maintain a strong cash position. The Company increased its cash position by $621 million during the current quarter to further strengthen its liquidity position. Debt securities represented 30 percent of total assets at September 30, 2023, compared to 34 percent at December 31, 2022, and 36 percent at September 30, 2022.

The loan portfolio of $16.135 billion increased $180 million, or 5 percent annualized, during the current quarter with the largest dollar increase in commercial real estate, which increased $71.7 million, or 3 percent annualized. The loan portfolio increased $1.284 billion, or 9 percent, from the prior year third quarter with the largest dollar increase in commercial real estate loans, which increased $709 million, or 7 percent.

Credit Quality Summary

  At or for the Nine Months ended   At or for the Six Months ended   At or for the Year ended   At or for the Nine Months ended
(Dollars in thousands) Sep 30,
2023
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
Allowance for credit losses              
Balance at beginning of period $ 182,283     182,283     172,665     172,665  
Provision for credit losses   16,609     11,514     17,433     11,373  
Charge-offs   (10,284 )   (7,083 )   (14,970 )   (10,905 )
Recoveries   3,663     2,671     7,155     5,058  
Balance at end of period $ 192,271     189,385     182,283     178,191  
Provision for credit losses              
Loan portfolio $ 16,609     11,514     17,433     11,373  
Unfunded loan commitments   (4,827 )   (3,271 )   2,530     2,466  
Total provision for credit losses $ 11,782     8,243     19,963     13,839  
Other real estate owned $              
Other foreclosed assets   48     52     32     42  
Accruing loans 90 days or more past due   3,855     3,876     1,559     2,524  
Non-accrual loans   38,380     28,094     31,151     32,493  
Total non-performing assets $ 42,283     32,022     32,742     35,059  
Non-performing assets as a percentage of subsidiary assets   0.15 %   0.12 %   0.12 %   0.13 %
Allowance for credit losses as a percentage of non-performing loans   455 %   592 %   557 %   508 %
Allowance for credit losses as a percentage of total loans   1.19 %   1.19 %   1.20 %   1.20 %
Net charge-offs as a percentage of total loans   0.04 %   0.03 %   0.05 %   0.04 %
Accruing loans 30-89 days past due $ 15,253     24,863     20,967     10,922  
U.S. government guarantees included in non-performing assets $ 1,057     1,035     2,312     4,930  


Non-performing assets of $42.3 million at September 30, 2023 increased $10.3 million, or 32 percent, over the quarter and increased $7.2 million, or 21 percent, over the prior year third quarter. Non-performing assets as a percentage of subsidiary assets at September 30, 2023 was 0.15 percent compared to 0.12 percent in the prior quarter and 0.13 percent in the prior year third quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $15.3 million at September 30, 2023 decreased $9.6 million from the prior quarter and decreased $5.7 million from prior year end. Early stage delinquencies as a percentage of loans at September 30, 2023 was 0.09 percent compared to 0.16 for the prior quarter end and 0.14 percent for the prior year end.

The current quarter credit loss expense of $3.5 million included $5.1 million of credit loss expense from loans and $1.6 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 September 30, 2023 was 1.19 percent compared to 1.20 percent in the prior year third quarter.

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

(Dollars in thousands) Provision for Credit Losses Loans   Net Charge-Offs
(Recoveries)
  ACL
as a Percent
of Loans
  Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
  Non-Performing
Assets to
Total Subsidiary
Assets
Third quarter 2023 $ 5,095     $ 2,209   1.19 %   0.09 %   0.15 %
Second quarter 2023   5,254       2,473   1.19 %   0.16 %   0.12 %
First quarter 2023   6,260       1,939   1.20 %   0.16 %   0.12 %
Fourth quarter 2022   6,060       1,968   1.20 %   0.14 %   0.12 %
Third quarter 2022   8,382       3,154   1.20 %   0.07 %   0.13 %
Second quarter 2022   (1,353 )     1,843   1.20 %   0.12 %   0.16 %
First quarter 2022   4,344       850   1.28 %   0.12 %   0.24 %
Fourth quarter 2021   19,301       616   1.29 %   0.38 %   0.26 %


Net charge-offs for the current quarter were $2.2 million compared to $2.5 million in the prior quarter and $3.2 million for the prior year third quarter. Net charge-offs of $2.2 million included $1.7 million in deposit overdraft net charge-offs and $544 thousand of net loan charge-offs.

The current quarter provision for credit loss expense for loans was $5.1 million, which was a decrease of $160 thousand from the prior quarter and a $3.3 million decrease from the prior year third 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) Sep 30,
2023
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
Deposits                          
Non-interest bearing deposits $ 6,465,353   6,458,394   7,690,751   8,294,363   6,959     (1,225,398 )   (1,829,010 )
NOW and DDA accounts   5,253,367   5,154,442   5,330,614   5,462,707   98,925     (77,247 )   (209,340 )
Savings accounts   2,872,362   2,808,571   3,200,321   3,305,333   63,791     (327,959 )   (432,971 )
Money market deposit accounts   2,994,631   3,094,302   3,472,281   3,905,676   (99,671 )   (477,650 )   (911,045 )
Certificate accounts   2,742,017   2,014,104   880,589   907,560   727,913     1,861,428     1,834,457  
Core deposits, total   20,327,730   19,529,813   20,574,556   21,875,639   797,917     (246,826 )   (1,547,909 )
Wholesale deposits   67,434   478,417   31,999   4,003   (410,983 )   35,435     63,431  
Deposits, total   20,395,164   20,008,230   20,606,555   21,879,642   386,934     (211,391 )   (1,484,478 )
Repurchase agreements   1,499,696   1,356,862   945,916   887,483   142,834     553,780     612,213  
Deposits and repurchase agreements, total   21,894,860   21,365,092   21,552,471   22,767,125   529,768     342,389     (872,265 )
Federal Home Loan Bank advances       1,800,000   705,000       (1,800,000 )   (705,000 )
FRB Bank Term Funding   2,740,000   2,740,000           2,740,000     2,740,000  
Other borrowed funds   73,752   75,819   77,293   77,671   (2,067 )   (3,541 )   (3,919 )
Subordinated debentures   132,903   132,863   132,782   132,742   40     121     161  
Other liabilities   347,452   287,379   229,524   278,059   60,073     117,928     69,393  
Total liabilities $ 25,188,967   24,601,153   23,792,070   23,960,597   587,814     1,396,897     1,228,370  


During the current quarter, the Company continued to focus on its diversified deposit and repurchase agreement product offerings. Total deposits and retail repurchase agreements of $21.895 billion at the current quarter end increased $530 million, or 10 percent annualized, during the current quarter. With the increased core deposits, the Company allowed $411 million of higher cost wholesale deposits to mature. Excluding wholesale deposits, core deposits and retail repurchase agreements increased $941 million, or 18 annualized percent, during the current quarter. Non-interest bearing deposits increased $7.0 million over the prior quarter, representing 32 percent of total core deposits at September 30, 2023 compared to 37 percent at December 31, 2022 and 38 percent at September 30, 2022.

The Company’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. The Company has available liquidity of $14.8 billion including cash, borrowing capacity from the FHLB and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.

Stockholders’ Equity Summary

                  $ Change from
(Dollars in thousands, except per share data) Sep 30,
2023
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
Common equity $ 3,374,961     3,357,313     3,312,097     3,267,505     17,648     62,864     107,456  
Accumulated other comprehensive loss   (500,367 )   (430,787 )   (468,792 )   (495,148 )   (69,580 )   (31,575 )   (5,219 )
Total stockholders’ equity   2,874,594     2,926,526     2,843,305     2,772,357     (51,932 )   31,289     102,237  
Goodwill and core deposit intangible, net   (1,019,690 )   (1,022,118 )   (1,026,994 )   (1,029,658 )   2,428     7,304     9,968  
Tangible stockholders’ equity $ 1,854,904     1,904,408     1,816,311     1,742,699     (49,504 )   38,593     112,205  


Stockholders’ equity to total assets   10.24 %   10.63 %   10.67 %   10.37 %            
Tangible stockholders’ equity to total tangible assets   6.86 %   7.18 %   7.09 %   6.78 %            
Book value per common share $ 25.93     26.40     25.67     25.03     (0.47 )   0.26   0.90
Tangible book value per common share $ 16.73     17.18     16.40     15.73     (0.45 )   0.33   1.00


Tangible stockholders’ equity of $1.855 billion at September 30, 2023 decreased $49.5 million, or 3 percent, compared to the prior quarter and was due to an increase in net unrealized losses (after-tax) on available-for-sale debt securities during the current quarter. Tangible stockholders’ equity increased $112 million, or 6 percent, from September 30, 2022, which was primarily due to earnings retention. Tangible book value per common share of $16.73 at the current quarter end increased $0.33 per share, or 2 percent, from the prior year end. The tangible book value per common share increased $1.00 per share from the prior year third quarter.

Cash Dividends
On September 27, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The current quarter dividend of $0.33 per share was consistent with the dividend declared in the prior quarter and the prior year third quarter. The dividend was payable October 19, 2023 to shareholders of record on October 10, 2023. The dividend was the Company’s 154th 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 September 30, 2023 
Compared to June 30, 2023, March 31, 2023 and September 30, 2022

Income Summary

  Three Months ended   $ Change from
(Dollars in thousands) Sep 30,
2023
  Jun 30,
2023
  Mar 31,
2023
  Sep 30,
2022
  Jun 30,
2023
  Mar 31,
2023
  Sep 30,
2022
Net interest income                          
Interest income $ 264,906     247,365     231,888     214,402     17,541     33,018     50,504  
Interest expense   97,852     75,385     45,696     9,075     22,467     52,156     88,777  
Total net interest income   167,054     171,980     186,192     205,327     (4,926 )   (19,138 )   (38,273 )
Non-interest income                          
Service charges and other fees   19,304     18,967     17,771     18,970     337     1,533     334  
Miscellaneous loan fees and charges   4,322     4,162     3,967     4,040     160     355     282  
Gain on sale of loans   4,046     3,528     2,400     3,846     518     1,646     200  
Loss on sale of debt securities   (65 )   (23 )   (114 )   (85 )   (42 )   49     20  
Other income   2,633     2,445     3,871     3,635     188     (1,238 )   (1,002 )
Total non-interest income   30,240     29,079     27,895     30,406     1,161     2,345     (166 )
Total income $ 197,294     201,059     214,087     235,733     (3,765 )   (16,793 )   (38,439 )
Net interest margin (tax-equivalent)   2.58 %   2.74 %   3.08 %   3.34 %            


Net Interest Income

The current quarter interest income of $265 million increased $17.5 million, or 7 percent, over the prior quarter and was driven primarily by the increase in the loan yields and an increase in interest-bearing cash. The current quarter interest income increased $50.5 million, or 24 percent, over the prior year third quarter and was principally due to loan growth and increased loan yields. The loan yield of 5.27 percent in the current quarter increased 15 basis points from the prior quarter loan yield of 5.12 percent and increased 60 basis points from the prior year third quarter loan yield of 4.67 percent.

The current quarter interest expense of $97.9 million increased $22.5 million, or 30 percent, over the prior quarter and increased $88.8 million, or 978 percent, over the prior year third quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 1.03 percent for the current quarter compared to 0.57 percent in the prior quarter and 0.06 percent for the prior year third quarter. The total cost of funding (including non-interest bearing deposits) was 1.58 percent in the current quarter compared to 1.26 percent in the prior quarter and 0.15 percent in the prior year third quarter, which was the result of the increased deposit and borrowing rates.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.58 percent compared to 2.74 percent in the prior quarter and 3.34 percent in the prior year third quarter. Although the net interest margin has been negatively impacted by the increase in interest rates in the current year, the Company experienced a slower pace in the decline in the net interest margin during the current quarter. The current quarter decrease in net interest margin was 16 basis points compared to a decrease of 34 basis points in the prior quarter and a decrease of 22 basis points in the first quarter of the current year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.55 percent compared to 2.72 percent in the prior quarter and 3.29 percent in the prior year third quarter.

Non-interest Income
Non-interest income for the current quarter totaled $30.2 million, which was an increase of $1.2 million, or 4 percent, over the prior quarter. Gain on the sale of residential loans of $4.0 million for the current quarter increased $518 thousand, or 15 percent, compared to the prior quarter and increased $200 thousand, or 5 percent, from the prior year third quarter. Service charges and other fees of $19.3 million in the current quarter increased $337 thousand, or 2 percent, over the prior quarter and increased $334 thousand, or 2 percent, over the prior year third quarter.

Non-interest Expense Summary

  Three Months ended   $ Change from
(Dollars in thousands) Sep 30,
2023
  Jun 30,
2023
  Mar 31,
2023
  Sep 30,
2022
  Jun 30,
2023
  Mar 31,
2023
  Sep 30,
2022
Compensation and employee benefits $ 77,387   78,764   81,477   80,612   (1,377 )   (4,090 )   (3,225 )
Occupancy and equipment   10,553   10,827   11,665   10,797   (274 )   (1,112 )   (244 )
Advertising and promotions   4,052   3,733   4,235   3,768   319     (183 )   284  
Data processing   8,730   8,402   8,109   7,716   328     621     1,014  
Other real estate owned and foreclosed assets   15   14   12   66   1     3     (51 )
Regulatory assessments and insurance   6,060   5,314   4,903   3,339   746     1,157     2,721  
Core deposit intangibles amortization   2,428   2,427   2,449   2,665   1     (21 )   (237 )
Other expenses   20,351   21,123   22,132   21,097   (772 )   (1,781 )   (746 )
Total non-interest expense $ 129,576   130,604   134,982   130,060   (1,028 )   (5,406 )   (484 )


Total non-interest expense of $130 million for the current quarter decreased $1.0 million, or 79 basis points, over the prior quarter and decreased $484 thousand, or 37 basis points, over the prior year third quarter. Compensation and employee benefits expense of $77.4 million for the current quarter decreased $1.4 million, or 2 percent, from the prior quarter and decreased $3.2 million, or 4 percent, over the prior year third quarter, which was driven primarily by decreases in accrued expenses for employee benefits. Regulatory assessments and insurance of $6.1 million, increased $2.7 million, or 81 percent, over the prior year third quarter and was primarily due to the Federal Deposit Insurance Corporation (“FDIC”) uniformly increasing all depository institutions premiums at the beginning of the current year. “The reduction in non-interest expense reflects the Company’s continued focus on staffing levels and containing costs in other areas,” said Ron Copher, Chief Financial Officer.

Federal and State Income Tax Expense
Tax expense during the third quarter of 2023 was $11.7 million, a decrease of $993 thousand, or 8 percent, compared to the prior quarter and a decrease of $6.3 million, or 35 percent, from the prior year third quarter. The effective tax rate in the current quarter was 18.3 percent compared to 18.8 percent in the prior quarter and 18.5 percent in the prior year third quarter.

Efficiency Ratio
The efficiency ratio was 63.31 percent in the current quarter compared to 62.73 percent in the prior quarter and 52.76 percent in the prior year third quarter. The increase from prior quarter and prior year third quarter was primarily attributable to the increase in interest expense in the current quarter that outpaced the increase in interest income.

Operating Results for Nine Months Ended September 30, 2023
Compared to September 30, 2022

Income Summary

  Nine Months ended    
(Dollars in thousands) Sep 30,
2023
  Sep 30,
2022
  $ Change   % Change
Net interest income              
Interest income $ 744,159     $ 604,555     $ 139,604     23 %
Interest expense   218,933       20,235       198,698     982 %
Total net interest income   525,226       584,320       (59,094 )   (10 )%
Non-interest income              
Service charges and other fees   56,042       53,390       2,652     5 %
Miscellaneous loan fees and charges   12,451       11,445       1,006     9 %
Gain on sale of loans   9,974       17,857       (7,883 )   (44 )%
(Loss) gain on sale of debt securities   (202 )     101       (303 )   (300 )%
Other income   8,949       9,456       (507 )   (5 )%
Total non-interest income   87,214       92,249       (5,035 )   (5 )%
Total Income $ 612,440     $ 676,569     $ (64,129 )   (9 )%
Net interest margin (tax-equivalent)   2.79 %     3.26 %        


Net Interest Income

Net-interest income of $525 million for the first nine months of 2023 decreased $59.1 million, or 10 percent, over the same period of 2022 and was primarily driven by increased interest expense. Interest income of $744 million for the first nine months in the current year increased $139.6 million, or 23 percent, from the same period in the prior year and was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The loan yield was 5.14 percent for the first nine months of the current year, an increase of 54 basis points from the first nine months of the prior year loan yield of 4.60 percent.

Interest expense of $218.9 million for the first nine months of 2023 increased $199 million, or 982 percent, over the same period in the prior year and was the result of increased borrowings and higher interest rates on borrowings and deposits. Core deposit cost (including non-interest bearing deposits) was 0.62 percent for the nine months of 2023 compared to 0.06 percent for the same period in 2022. The total funding cost (including non-interest bearing deposits) for the first nine months of the current year was 1.22 percent, which was an increase of 110 basis points over the prior year first nine months of 0.12 percent.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first nine months of 2023 was 2.79 percent, a 47 basis points decrease from the net interest margin of 3.26 percent for the same period in the prior year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.77 percent for the first nine months of the current year, which was a 41 basis points decrease from the core margin of 3.18 percent in the same period of the prior year.

Non-interest Income
Non-interest income of $87.2 million for the first nine months of 2023 decreased $5.0 million, or 5 percent, over the same period last year and was primarily due to the decrease in gain on sale of residential loans, which was partially offset by the increase in service charges and other fees. Gain on sale of residential loans of $10.0 million in the current year decreased by $7.9 million, or 44 percent, over the prior year as result of the reduction in residential purchase and refinance activity as mortgage rates significantly increased during the current year. Miscellaneous loan fees of $12.5 million, increased $1.0 million, or 9 percent, which was primarily driven by increased credit card interchange fees due to increased activity.

Non-interest Expense Summary

  Nine Months ended        
(Dollars in thousands) Sep 30,
2023
  Sep 30,
2022
  $ Change   % Change
Compensation and employee benefits $ 237,628   $ 239,489   $ (1,861 )   (1 )%
Occupancy and equipment   33,045     32,527     518     2 %
Advertising and promotions   12,020     10,766     1,254     12 %
Data processing   25,241     22,744     2,497     11 %
Other real estate owned and foreclosed assets   41     72     (31 )   (43 )%
Regulatory assessments and insurance   16,277     9,479     6,798     72 %
Core deposit intangibles amortization   7,304     7,994     (690 )   (9 )%
Other expenses   63,606     66,818     (3,212 )   (5 )%
Total non-interest expense $ 395,162   $ 389,889   $ 5,273     1 %


Total non-interest expense of $395 million for the first nine months of 2023 increased $5.3 million, or 1 percent, over the same period in the prior year. Regulatory assessments and insurance of $16.3 million for the first nine months of 2023 increased $6.8 million, or 72 percent, over the prior year and was primarily due to the FDIC uniformly increasing all depository institutions premiums beginning in 2023. Other expense of $63.6 million for the first nine months of 2023 decreased $3.2 million, or 5 percent, from the first nine months of the prior year and was primarily due to the decrease in acquisition-related expenses along with changes in several miscellaneous categories. Acquisition-related expenses were $842 thousand in the first nine months of the current year compared to $9.2 million in the same period of last year.

Provision for Credit Losses
The provision for credit loss expense was $11.8 million for the first nine months of 2023 and decreased $2.1 million, or 15 percent, over the same period of the prior year. The provision for credit loss expense for the first nine months of 2023 included provision for credit loss expense of $16.6 million on the loan portfolio and credit loss benefit of $4.8 million on the unfunded loan commitments. Net charge-offs during the first nine months of the current year were $6.6 million compared to $5.8 million during the same period of the prior year.

Federal and State Income Tax Expense
Tax expense of $36.9 million for the first nine months of 2023 decreased $12.4 million, or 25 percent, over the first nine months of the prior year. The effective tax rate for first nine months of 2023 was 17.9 percent compared to 18.1 percent for the first nine months of 2022.

Efficiency Ratio
The efficiency ratio was 62.10 percent for the first nine months of 2023 compared to 55.14 percent for the same period last year. The increase from the prior year was primarily attributable to the increase in interest expense in the current year that outpaced the increase in interest income.

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

  • risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
  • changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
  • legislative or regulatory changes, including increased banking and consumer protection regulations, that may adversely affect the Company’s business;
  • risks related to overall economic conditions, including the impact on the economy of a rising interest rate environment, inflationary pressures, and geopolitical instability, including the wars in Ukraine and the Middle East;
  • risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;
  • costs or difficulties related to the completion and integration of 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, October 20, 2023. 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/BIbe718214dea94214b3ab02d160926dd0. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/w8zz3hr8. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.

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

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
 
(Dollars in thousands, except per share data) Sep 30,
2023
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
Assets              
Cash on hand and in banks $ 264,067     285,920     300,194     260,456  
Interest bearing cash deposits   1,408,027     765,400     101,801     164,756  
Cash and cash equivalents   1,672,094     1,051,320     401,995     425,212  
Debt securities, available-for-sale   4,741,738     4,999,820     5,307,307     5,755,076  
Debt securities, held-to-maturity   3,553,805     3,608,289     3,715,052     3,756,634  
Total debt securities   8,295,543     8,608,109     9,022,359     9,511,710  
Loans held for sale, at fair value   29,027     35,006     12,314     21,720  
Loans receivable   16,135,046     15,954,962     15,246,812     14,851,233  
Allowance for credit losses   (192,271 )   (189,385 )   (182,283 )   (178,191 )
Loans receivable, net   15,942,775     15,765,577     15,064,529     14,673,042  
Premises and equipment, net   415,343     405,407     398,100     395,639  
Other real estate owned and foreclosed assets   48     52     32     42  
Accrued interest receivable   104,476     88,351     83,538     93,300  
Deferred tax asset   203,745     179,815     193,187     204,351  
Core deposit intangible, net   34,297     36,725     41,601     44,265  
Goodwill   985,393     985,393     985,393     985,393  
Non-marketable equity securities   11,330     10,014     82,015     38,215  
Bank-owned life insurance   170,175     169,195     169,068     168,187  
Other assets   199,315     192,715     181,244     171,878  
Total assets $ 28,063,561     27,527,679     26,635,375     26,732,954  
Liabilities              
Non-interest bearing deposits $ 6,465,353     6,458,394     7,690,751     8,294,363  
Interest bearing deposits   13,929,811     13,549,836     12,915,804     13,585,279  
Securities sold under agreements to repurchase   1,499,696     1,356,862     945,916     887,483  
FHLB advances           1,800,000     705,000  
FRB Bank Term Funding   2,740,000     2,740,000          
Other borrowed funds   73,752     75,819     77,293     77,671  
Subordinated debentures   132,903     132,863     132,782     132,742  
Accrued interest payable   91,874     47,742     4,331     2,740  
Other liabilities   255,578     239,637     225,193     275,319  
Total liabilities   25,188,967     24,601,153     23,792,070     23,960,597  
Commitments and Contingent Liabilities              
Stockholders’ Equity              
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding                
Common stock, $0.01 par value per share, 234,000,000 shares authorized   1,109     1,109     1,108     1,108  
Paid-in capital   2,348,305     2,346,422     2,344,005     2,342,452  
Retained earnings - substantially restricted   1,025,547     1,009,782     966,984     923,945  
Accumulated other comprehensive loss   (500,367 )   (430,787 )   (468,792 )   (495,148 )
Total stockholders’ equity   2,874,594     2,926,526     2,843,305     2,772,357  
Total liabilities and stockholders’ equity $ 28,063,561     27,527,679     26,635,375     26,732,954  


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 
  Three Months ended   Nine Months ended
(Dollars in thousands, except per share data) Sep 30,
2023
  Jun 30,
2023
  Mar 31,
2023
  Sep 30,
2022
  Sep 30,
2023
  Sep 30,
2022
Interest Income                      
Investment securities $ 53,397     47,658     43,642     43,722     144,697     125,217
Residential real estate loans   18,594     17,076     15,838     13,738     51,508     42,279
Commercial loans   173,437     164,587     155,682     142,692     493,706     398,507
Consumer and other loans   19,478     18,044     16,726     14,250     54,248     38,552
Total interest income   264,906     247,365     231,888     214,402     744,159     604,555
Interest Expense                      
Deposits   54,697     31,700     12,545     3,279     98,942     9,884
Securities sold under agreements to
repurchase
  10,972     8,607     4,606     675     24,185     1,435
Federal Home Loan Bank advances       3,305     23,605     3,318     26,910     4,628
FRB Bank Term Funding   30,229     29,899     3,032         63,160    
Other borrowed funds   489     443     496     214     1,428     698
Subordinated debentures   1,465     1,431     1,412     1,589     4,308     3,590
Total interest expense   97,852     75,385     45,696     9,075     218,933     20,235
Net Interest Income   167,054     171,980     186,192     205,327     525,226     584,320
Provision for credit losses   3,539     2,773     5,470     8,341     11,782     13,839
Net interest income after provision for credit losses   163,515     169,207     180,722     196,986     513,444     570,481
Non-Interest Income                      
Service charges and other fees   19,304     18,967     17,771     18,970     56,042     53,390
Miscellaneous loan fees and charges   4,322     4,162     3,967     4,040     12,451     11,445
Gain on sale of loans   4,046     3,528     2,400     3,846     9,974     17,857
(Loss) gain on sale of debt securities   (65 )   (23 )   (114 )   (85 )   (202 )   101
Other income   2,633     2,445     3,871     3,635     8,949     9,456
Total non-interest income   30,240     29,079     27,895     30,406     87,214     92,249
Non-Interest Expense                      
Compensation and employee benefits   77,387     78,764     81,477     80,612     237,628     239,489
Occupancy and equipment   10,553     10,827     11,665     10,797     33,045     32,527
Advertising and promotions   4,052     3,733     4,235     3,768     12,020     10,766
Data processing   8,730     8,402     8,109     7,716     25,241     22,744
Other real estate owned and foreclosed assets   15     14     12     66     41     72
Regulatory assessments and insurance   6,060     5,314     4,903     3,339     16,277     9,479
Core deposit intangibles amortization   2,428     2,427     2,449     2,665     7,304     7,994
Other expenses   20,351     21,123     22,132     21,097     63,606     66,818
Total non-interest expense   129,576     130,604     134,982     130,060     395,162     389,889
Income Before Income Taxes   64,179     67,682     73,635     97,332     205,496     272,841
Federal and state income tax expense   11,734     12,727     12,424     17,994     36,885     49,316
Net Income $ 52,445     54,955     61,211     79,338     168,611     223,525


Glacier Bancorp, Inc.
Average Balance Sheets
 
  Three Months ended
  September 30, 2023   June 30, 2023
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 1,649,947     $ 18,594   4.51 %   $ 1,567,136     $ 17,076   4.36 %
Commercial loans 1   13,120,479       174,822   5.29 %     12,950,934       165,874   5.14 %
Consumer and other loans   1,263,775       19,478   6.11 %     1,236,763       18,044   5.85 %
Total loans 2   16,034,201       212,894   5.27 %     15,754,833       200,994   5.12 %
Tax-exempt debt securities 3   1,732,227       14,486   3.34 %     1,743,852       14,462   3.32 %
Taxable debt securities 4   8,485,157       41,052   1.94 %     8,177,551       35,202   1.72 %
Total earning assets   26,251,585       268,432   4.06 %     25,676,236       250,658   3.92 %
Goodwill and intangibles   1,020,868               1,023,291          
Non-earning assets   528,145               523,349          
Total assets $ 27,800,598             $ 27,222,876          
Liabilities                      
Non-interest bearing deposits $ 6,461,350     $   %   $ 6,584,082     $   %
NOW and DDA accounts   5,231,741       12,906   0.98 %     5,108,421       7,429   0.58 %
Savings accounts   2,840,620       3,492   0.49 %     2,846,015       1,064   0.15 %
Money market deposit accounts   3,039,177       12,646   1.65 %     3,256,007       10,174   1.25 %
Certificate accounts   2,462,266       23,151   3.73 %     1,451,218       8,878   2.45 %
Total core deposits   20,035,154       52,195   1.03 %     19,245,743       27,545   0.57 %
Wholesale deposits 5   188,523       2,502   5.27 %     330,655       4,155   5.04 %
Repurchase agreements   1,401,765       10,972   3.11 %     1,273,045       8,607   2.71 %
FHLB advances           %     245,055       3,305   5.33 %
FRB Bank Term Funding   2,740,000       30,229   4.38 %     2,740,000       29,899   4.38 %
Subordinated debentures and other borrowed funds   208,336       1,954   3.72 %     208,804       1,874   3.60 %
Total funding liabilities   24,573,778       97,852   1.58 %     24,043,302       75,385   1.26 %
Other liabilities   302,564               247,319          
Total liabilities   24,876,342               24,290,621          
Stockholders’ Equity                      
Common stock   1,109               1,108          
Paid-in capital   2,347,323               2,345,438          
Retained earnings   1,035,276               1,017,456          
Accumulated other comprehensive loss   (459,452 )             (431,747 )        
Total stockholders’ equity   2,924,256               2,932,255          
Total liabilities and stockholders’ equity $ 27,800,598             $ 27,222,876          
Net interest income (tax-equivalent)     $ 170,580           $ 175,273    
Net interest spread (tax-equivalent)         2.48 %           2.66 %
Net interest margin (tax-equivalent)         2.58 %           2.74 %

______________________________

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 September 30, 2023 and June 30, 2023, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $1.9 million and $1.8 million on tax-exempt debt securities income for the three months ended September 30, 2023 and June 30, 2023, respectively.
4 Includes tax effect of $215 thousand and $214 thousand on federal income tax credits for the three months ended September 30, 2023 and June 30, 2023, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)
 
  Three Months ended
  September 30, 2023   September 30, 2022
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 1,649,947     $ 18,594   4.51 %   $ 1,338,606     $ 13,738   4.11 %
Commercial loans 1   13,120,479       174,822   5.29 %     12,146,551       144,357   4.72 %
Consumer and other loans   1,263,775       19,478   6.11 %     1,156,305       14,250   4.89 %
Total loans 2   16,034,201       212,894   5.27 %     14,641,462       172,345   4.67 %
Tax-exempt debt securities 3   1,732,227       14,486   3.34 %     2,000,404       18,484   3.70 %
Taxable debt securities 4   8,485,157       41,052   1.94 %     8,426,933       29,297   1.39 %
Total earning assets   26,251,585       268,432   4.06 %     25,068,799       220,126   3.48 %
Goodwill and intangibles   1,020,868               1,030,961          
Non-earning assets   528,145               604,754          
Total assets $ 27,800,598             $ 26,704,514          
Liabilities                      
Non-interest bearing deposits $ 6,461,350     $   %   $ 8,158,207     $   %
NOW and DDA accounts   5,231,741       12,906   0.98 %     5,473,458       794   0.06 %
Savings accounts   2,840,620       3,492   0.49 %     3,319,167       260   0.03 %
Money market deposit accounts   3,039,177       12,646   1.65 %     3,999,758       1,483   0.15 %
Certificate accounts   2,462,266       23,151   3.73 %     940,507       722   0.30 %
Total core deposits   20,035,154       52,195   1.03 %     21,891,097       3,259   0.06 %
Wholesale deposits 5   188,523       2,502   5.27 %     3,946       20   2.05 %
Repurchase agreements   1,401,765       10,972   3.11 %     917,104       675   0.29 %
FHLB advances           %     541,630       3,318   2.40 %
FRB Bank Term Funding   2,740,000       30,229   4.38 %             %
Subordinated debentures and other borrowed funds   208,336       1,954   3.72 %     202,383       1,803   3.54 %
Total funding liabilities   24,573,778       97,852   1.58 %     23,556,160       9,075   0.15 %
Other liabilities   302,564               261,735          
Total liabilities   24,876,342               23,817,895          
Stockholders’ Equity                      
Common stock   1,109               1,108          
Paid-in capital   2,347,323               2,341,648          
Retained earnings   1,035,276               920,372          
Accumulated other comprehensive loss   (459,452 )             (376,509 )        
Total stockholders’ equity   2,924,256               2,886,619          
Total liabilities and stockholders’ equity $ 27,800,598             $ 26,704,514          
Net interest income (tax-equivalent)     $ 170,580           $ 211,051    
Net interest spread (tax-equivalent)         2.48 %           3.33 %
Net interest margin (tax-equivalent)         2.58 %           3.34 %

______________________________

1 Includes tax effect of $1.4 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2023 and 2022, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $1.9 million and $3.8 million on tax-exempt debt securities income for the three months ended September 30, 2023 and 2022, respectively.
4 Includes tax effect of $215 thousand and $225 thousand on federal income tax credits for the three months ended September 30, 2023 and 2022, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)
 
  Nine Months ended
  September 30, 2023   September 30, 2022
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 1,570,911     $ 51,508   4.37 %   $ 1,236,674     $ 42,279   4.56 %
Commercial loans 1   12,910,691       498,152   5.16 %     11,728,932       403,075   4.59 %
Consumer and other loans   1,236,158       54,248   5.87 %     1,113,232       38,552   4.63 %
Total loans 2   15,717,760       603,908   5.14 %     14,078,838       483,906   4.60 %
Tax-exempt debt securities 3   1,745,764       44,978   3.44 %     1,902,147       52,561   3.68 %
Taxable debt securities 4   8,240,041       107,338   1.74 %     8,663,590       84,235   1.30 %
Total earning assets   25,703,565       756,224   3.93 %     24,644,575       620,702   3.37 %
Goodwill and intangibles   1,023,274               1,033,606          
Non-earning assets   510,332               659,727          
Total assets $ 27,237,171             $ 26,337,908          
Liabilities                      
Non-interest bearing deposits $ 6,770,242     $   %   $ 8,004,395     $   %
NOW and DDA accounts   5,140,668       22,606   0.59 %     5,387,013       2,362   0.06 %
Savings accounts   2,930,420       5,070   0.23 %     3,276,092       836   0.03 %
Money market deposit accounts   3,253,138       28,654   1.18 %     4,009,931       4,233   0.14 %
Certificate accounts   1,638,163       34,613   2.82 %     980,543       2,416   0.33 %
Total core deposits   19,732,631       90,943   0.62 %     21,657,974       9,847   0.06 %
Wholesale deposits 5   213,465       7,999   5.01 %     8,290       37   0.59 %
Repurchase agreements   1,238,139       24,185   2.61 %     936,840       1,435   0.20 %
FHLB advances   738,004       26,910   4.81 %     346,465       4,628   1.76 %
FRB Bank Term Funding   1,929,322       63,160   4.38 %             %
Subordinated debentures and other borrowed funds   208,891       5,737   3.67 %     190,810       4,288   3.00 %
Total funding liabilities   24,060,452       218,934   1.22 %     23,140,379       20,235   0.12 %
Other liabilities   256,022               249,001          
Total liabilities   24,316,474               23,389,380          
Stockholders’ Equity                      
Common stock   1,109               1,107          
Paid-in capital   2,345,698               2,340,208          
Retained earnings   1,017,159               881,208          
Accumulated other comprehensive loss   (443,269 )             (273,995 )        
Total stockholders’ equity   2,920,697               2,948,528          
Total liabilities and stockholders’ equity $ 27,237,171             $ 26,337,908          
Net interest income (tax-equivalent)     $ 537,290           $ 600,467    
Net interest spread (tax-equivalent)         2.71 %           3.25 %
Net interest margin (tax-equivalent)         2.79 %           3.26 %

______________________________

1 Includes tax effect of $4.4 million and $4.6 million on tax-exempt municipal loan and lease income for the nine months ended September 30, 2023 and 2022, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $7.0 million and $10.9 million on tax-exempt debt securities income for the nine months ended September 30, 2023 and 2022, respectively.
4 Includes tax effect of $644 thousand and $676 thousand on federal income tax credits for the nine months ended September 30, 2023 and 2022, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
 
  Loans Receivable, by Loan Type   % Change from
(Dollars in thousands) Sep 30,
2023
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
Custom and owner occupied construction $ 306,106     $ 315,651     $ 298,461     $ 288,977     (3 )%   3 %   6 %
Pre-sold and spec construction   287,048       306,440       297,895       291,146     (6 )%   (4 )%   (1 )%
Total residential construction   593,154       622,091       596,356       580,123     (5 )%   (1 )%   2 %
Land development   234,995       238,897       219,842       217,878     (2 )%   7 %   8 %
Consumer land or lots   184,685       182,251       206,604       204,241     1 %   (11 )%   (10 )%
Unimproved land   87,089       91,157       104,662       101,684     (4 )%   (17 )%   (14 )%
Developed lots for operative builders   62,485       65,134       60,987       62,800     (4 )%   2 %   (1 )%
Commercial lots   84,194       94,334       93,952       94,395     (11 )%   (10 )%   (11 )%
Other construction   982,384       1,039,192       938,406       893,846     (5 )%   5 %   10 %
Total land, lot, and other construction   1,635,832       1,710,965       1,624,453       1,574,844     (4 )%   1 %   4 %
Owner occupied   2,976,821       2,934,724       2,833,469       2,811,614     1 %   5 %   6 %
Non-owner occupied   3,765,266       3,714,531       3,531,673       3,448,044     1 %   7 %   9 %
Total commercial real estate   6,742,087       6,649,255       6,365,142       6,259,658     1 %   6 %   8 %
Commercial and industrial   1,363,198       1,370,393       1,377,888       1,308,272     (1 )%   (1 )%   4 %
Agriculture   785,208       770,378       735,553       770,282     2 %   7 %   2 %
1st lien   2,054,497       1,956,205       1,808,502       1,738,151     5 %   14 %   18 %
Junior lien   47,490       46,616       40,445       36,677     2 %   17 %   29 %
Total 1-4 family   2,101,987       2,002,821       1,848,947       1,774,828     5 %   14 %   18 %
Multifamily residential   714,822       664,859       622,185       574,366     8 %   15 %   24 %
Home equity lines of credit   950,204       940,048       872,899       841,143     1 %   9 %   13 %
Other consumer   233,980       231,519       220,035       219,036     1 %   6 %   7 %
Total consumer   1,184,184       1,171,567       1,092,934       1,060,179     1 %   8 %   12 %
States and political subdivisions   833,618       812,688       797,656       776,875     3 %   5 %   7 %
Other   209,983       214,951       198,012       193,526     (2 )%   6 %   9 %
Total loans receivable, including
loans held for sale
  16,164,073       15,989,968       15,259,126       14,872,953     1 %   6 %   9 %
Less loans held for sale 1   (29,027 )     (35,006 )     (12,314 )     (21,720 )   (17 )%   136 %   34 %
Total loans receivable $ 16,135,046     $ 15,954,962     $ 15,246,812     $ 14,851,233     1 %   6 %   9 %

______________________________

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) Sep 30,
2023
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
  Sep 30,
2023
  Sep 30,
2023
  Sep 30,
2023
Custom and owner occupied construction $ 219   219   224   227   219    
Pre-sold and spec construction   763   1,548   389   1,016     763  
Total residential construction   982   1,767   613   1,243   219   763  
Land development   80   118   138   149   80    
Consumer land or lots   314   239   278   285   314    
Unimproved land   36   43   78   94   36    
Developed lots for operative builders   608   608   251   255     608  
Commercial lots   188   188       141   47  
Other construction   12,884   12,884   12,884   12,884   12,884    
Total land, lot and other construction   14,110   14,080   13,629   13,667   13,455   655  
Owner occupied   1,445   2,251   2,076   2,687   1,326   119  
Non-owner occupied   15,105   4,450   805   820   15,105    
Total commercial real estate   16,550   6,701   2,881   3,507   16,431   119  
Commercial and Industrial   1,367   1,339   3,326   3,453   907   460  
Agriculture   2,450   2,564   2,574   4,102   2,449   1  
1st lien   2,766   2,794   2,678   2,149   2,644   107   15
Junior lien   363   273   166   139   147   216  
Total 1-4 family   3,129   3,067   2,844   2,288   2,791   323   15
Multifamily residential       4,535   4,635      
Home equity lines of credit   1,612   1,256   1,393   1,550   1,402   210  
Other consumer   942   1,116   911   555   726   183   33
Total consumer   2,554   2,372   2,304   2,105   2,128   393   33
Other   1,141   132   36   59     1,141  
Total $ 42,283   32,022   32,742   35,059   38,380   3,855   48


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
 
  Accruing 30-89 Days Delinquent Loans, by Loan Type   % Change from
(Dollars in thousands) Sep 30,
2023
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
  Jun 30,
2023
  Dec 31,
2022
  Sep 30,
2022
Custom and owner occupied construction $   $ 324   $ 1,082   $ 427   (100 )%   (100 )%   (100 )%
Pre-sold and spec construction   599     129     1,712       364 %   (65 )%   n/m
Total residential construction   599     453     2,794     427   32 %   (79 )%   40 %
Land development   44     244         596   (82 )%   n/m   (93 )%
Consumer land or lots   528     565     442       (7 )%   19 %   n/m
Unimproved land   87         120     36   n/m   (28 )%   142 %
Developed lots for operative builders           958     30   n/m   (100 )%   (100 )%
Commercial lots   1,245     3,404     47     2,158   (63 )%   2,549 %   (42 )%
Other construction       1,114     209       (100 )%   (100 )%   n/m
Total land, lot and other construction   1,904     5,327     1,776     2,820   (64 )%   7 %   (32 )%
Owner occupied   652     1,053     3,478     527   (38 )%   (81 )%   24 %
Non-owner occupied   213     8,595     496       (98 )%   (57 )%   n/m
Total commercial real estate   865     9,648     3,974     527   (91 )%   (78 )%   64 %
Commercial and industrial   2,946     2,096     3,439     2,087   41 %   (14 )%   41 %
Agriculture   604     871     1,367     641   (31 )%   (56 )%   (6 )%
1st lien   1,006     1,115     2,174     761   (10 )%   (54 )%   32 %
Junior lien   355     385     190     72   (8 )%   87 %   393 %
Total 1-4 family   1,361     1,500     2,364     833   (9 )%   (42 )%   63 %
Multifamily Residential           492       n/m   (100 )%   n/m
Home equity lines of credit   3,638     2,021     1,182     1,004   80 %   208 %   262 %
Other consumer   1,821     1,714     1,824     1,089   6 %   %   67 %
Total consumer   5,459     3,735