Toggle SGML Header (+)


Section 1: 10-Q (FORM 10-Q)

gbci-20200930
0000868671false2020Q3--12-31us-gaap:AccountingStandardsUpdate201613Member1P5Y00008686712020-01-012020-09-30xbrli:shares00008686712020-10-15iso4217:USD00008686712020-09-3000008686712019-12-31iso4217:USDxbrli:shares00008686712020-07-012020-09-3000008686712019-07-012019-09-3000008686712019-01-012019-09-300000868671us-gaap:CommonStockMember2019-06-300000868671us-gaap:AdditionalPaidInCapitalMember2019-06-300000868671us-gaap:RetainedEarningsMember2019-06-300000868671us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-3000008686712019-06-300000868671us-gaap:RetainedEarningsMember2019-07-012019-09-300000868671us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300000868671us-gaap:CommonStockMember2019-07-012019-09-300000868671us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300000868671us-gaap:CommonStockMember2019-09-300000868671us-gaap:AdditionalPaidInCapitalMember2019-09-300000868671us-gaap:RetainedEarningsMember2019-09-300000868671us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-3000008686712019-09-300000868671us-gaap:CommonStockMember2020-06-300000868671us-gaap:AdditionalPaidInCapitalMember2020-06-300000868671us-gaap:RetainedEarningsMember2020-06-300000868671us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-3000008686712020-06-300000868671us-gaap:RetainedEarningsMember2020-07-012020-09-300000868671us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300000868671us-gaap:CommonStockMember2020-07-012020-09-300000868671us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300000868671us-gaap:CommonStockMember2020-09-300000868671us-gaap:AdditionalPaidInCapitalMember2020-09-300000868671us-gaap:RetainedEarningsMember2020-09-300000868671us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000868671us-gaap:CommonStockMember2018-12-310000868671us-gaap:AdditionalPaidInCapitalMember2018-12-310000868671us-gaap:RetainedEarningsMember2018-12-310000868671us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-3100008686712018-12-310000868671us-gaap:RetainedEarningsMember2019-01-012019-09-300000868671us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300000868671us-gaap:CommonStockMember2019-01-012019-09-300000868671us-gaap:AdditionalPaidInCapitalMember2019-01-012019-09-300000868671us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310000868671srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310000868671us-gaap:CommonStockMember2019-12-310000868671us-gaap:AdditionalPaidInCapitalMember2019-12-310000868671us-gaap:RetainedEarningsMember2019-12-310000868671us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000868671us-gaap:RetainedEarningsMember2020-01-012020-09-300000868671us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300000868671us-gaap:CommonStockMember2020-01-012020-09-300000868671us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300000868671us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000868671srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-31gbci:division0000868671srt:MinimumMember2020-01-012020-09-30gbci:quarter0000868671srt:MaximumMember2020-01-012020-09-30gbci:numberOfComponents0000868671us-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate201613Member2019-12-310000868671us-gaap:AccountingStandardsUpdate201613Member2019-12-31gbci:operating_segment0000868671us-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-09-300000868671us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2020-09-300000868671us-gaap:USStatesAndPoliticalSubdivisionsMember2020-09-300000868671us-gaap:CorporateBondSecuritiesMember2020-09-300000868671us-gaap:ResidentialMortgageBackedSecuritiesMember2020-09-300000868671us-gaap:CommercialMortgageBackedSecuritiesMember2020-09-300000868671us-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-12-310000868671us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2019-12-310000868671us-gaap:USStatesAndPoliticalSubdivisionsMember2019-12-310000868671us-gaap:CorporateBondSecuritiesMember2019-12-310000868671us-gaap:ResidentialMortgageBackedSecuritiesMember2019-12-310000868671us-gaap:CommercialMortgageBackedSecuritiesMember2019-12-310000868671us-gaap:MortgageBackedSecuritiesMember2020-09-30gbci:securityxbrli:pure0000868671srt:StandardPoorsAAARatingMembersrt:MoodysAaaRatingMemberus-gaap:InternalInvestmentGradeMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-09-300000868671srt:StandardPoorsAAARatingMembersrt:MoodysAaaRatingMemberus-gaap:InternalInvestmentGradeMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2019-12-310000868671gbci:MoodysAa1Aa2OrAa3RatingsMembergbci:StandardPoorsAAAAOrAARatingsMemberus-gaap:InternalInvestmentGradeMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-09-300000868671gbci:MoodysAa1Aa2OrAa3RatingsMembergbci:StandardPoorsAAAAOrAARatingsMemberus-gaap:InternalInvestmentGradeMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2019-12-310000868671gbci:StandardPoorsAAOrARatingsMemberus-gaap:InternalInvestmentGradeMembergbci:MoodysA1A2OrA3RatingsMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-09-300000868671gbci:StandardPoorsAAOrARatingsMemberus-gaap:InternalInvestmentGradeMembergbci:MoodysA1A2OrA3RatingsMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2019-12-310000868671gbci:StandardPoorsNotRatedMemberus-gaap:InternalInvestmentGradeMemberus-gaap:USStatesAndPoliticalSubdivisionsMembergbci:MoodysNotRatedMember2020-09-300000868671gbci:StandardPoorsNotRatedMemberus-gaap:InternalInvestmentGradeMemberus-gaap:USStatesAndPoliticalSubdivisionsMembergbci:MoodysNotRatedMember2019-12-310000868671us-gaap:ResidentialPortfolioSegmentMember2020-09-300000868671us-gaap:ResidentialPortfolioSegmentMember2019-12-310000868671us-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300000868671us-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000868671us-gaap:CommercialPortfolioSegmentMember2020-09-300000868671us-gaap:CommercialPortfolioSegmentMember2019-12-310000868671gbci:HomeEquityPortfolioSegmentMember2020-09-300000868671gbci:HomeEquityPortfolioSegmentMember2019-12-310000868671us-gaap:ConsumerPortfolioSegmentMember2020-09-300000868671us-gaap:ConsumerPortfolioSegmentMember2019-12-310000868671us-gaap:ResidentialPortfolioSegmentMember2020-06-300000868671us-gaap:CommercialRealEstatePortfolioSegmentMember2020-06-300000868671us-gaap:CommercialPortfolioSegmentMember2020-06-300000868671gbci:HomeEquityPortfolioSegmentMember2020-06-300000868671us-gaap:ConsumerPortfolioSegmentMember2020-06-300000868671us-gaap:ResidentialPortfolioSegmentMember2020-07-012020-09-300000868671us-gaap:CommercialRealEstatePortfolioSegmentMember2020-07-012020-09-300000868671us-gaap:CommercialPortfolioSegmentMember2020-07-012020-09-300000868671gbci:HomeEquityPortfolioSegmentMember2020-07-012020-09-300000868671us-gaap:ConsumerPortfolioSegmentMember2020-07-012020-09-300000868671us-gaap:ResidentialPortfolioSegmentMember2019-06-300000868671us-gaap:CommercialRealEstatePortfolioSegmentMember2019-06-300000868671us-gaap:CommercialPortfolioSegmentMember2019-06-300000868671gbci:HomeEquityPortfolioSegmentMember2019-06-300000868671us-gaap:ConsumerPortfolioSegmentMember2019-06-300000868671us-gaap:ResidentialPortfolioSegmentMember2019-07-012019-09-300000868671us-gaap:CommercialRealEstatePortfolioSegmentMember2019-07-012019-09-300000868671us-gaap:CommercialPortfolioSegmentMember2019-07-012019-09-300000868671gbci:HomeEquityPortfolioSegmentMember2019-07-012019-09-300000868671us-gaap:ConsumerPortfolioSegmentMember2019-07-012019-09-300000868671us-gaap:ResidentialPortfolioSegmentMember2019-09-300000868671us-gaap:CommercialRealEstatePortfolioSegmentMember2019-09-300000868671us-gaap:CommercialPortfolioSegmentMember2019-09-300000868671gbci:HomeEquityPortfolioSegmentMember2019-09-300000868671us-gaap:ConsumerPortfolioSegmentMember2019-09-300000868671us-gaap:ResidentialPortfolioSegmentMember2020-01-012020-09-300000868671us-gaap:CommercialRealEstatePortfolioSegmentMember2020-01-012020-09-300000868671us-gaap:CommercialPortfolioSegmentMember2020-01-012020-09-300000868671gbci:HomeEquityPortfolioSegmentMember2020-01-012020-09-300000868671us-gaap:ConsumerPortfolioSegmentMember2020-01-012020-09-300000868671us-gaap:ResidentialPortfolioSegmentMember2018-12-310000868671us-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310000868671us-gaap:CommercialPortfolioSegmentMember2018-12-310000868671gbci:HomeEquityPortfolioSegmentMember2018-12-310000868671us-gaap:ConsumerPortfolioSegmentMember2018-12-310000868671us-gaap:ResidentialPortfolioSegmentMember2019-01-012019-09-300000868671us-gaap:CommercialRealEstatePortfolioSegmentMember2019-01-012019-09-300000868671us-gaap:CommercialPortfolioSegmentMember2019-01-012019-09-300000868671gbci:HomeEquityPortfolioSegmentMember2019-01-012019-09-300000868671us-gaap:ConsumerPortfolioSegmentMember2019-01-012019-09-300000868671gbci:StateBankOfArizonaMember2020-01-012020-09-300000868671us-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300000868671us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300000868671us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2020-09-300000868671us-gaap:FinancingReceivables30To59DaysPastDueMembergbci:HomeEquityPortfolioSegmentMember2020-09-300000868671us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2020-09-300000868671us-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300000868671us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300000868671us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300000868671gbci:HomeEquityPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2020-09-300000868671us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2020-09-300000868671us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-09-300000868671us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-09-300000868671us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2020-09-300000868671us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembergbci:HomeEquityPortfolioSegmentMember2020-09-300000868671us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2020-09-300000868671us-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310000868671us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310000868671us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2019-12-310000868671us-gaap:FinancingReceivables30To59DaysPastDueMembergbci:HomeEquityPortfolioSegmentMember2019-12-310000868671us-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2019-12-310000868671us-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310000868671us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310000868671us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310000868671gbci:HomeEquityPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2019-12-310000868671us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2019-12-310000868671us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310000868671us-gaap:ResidentialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310000868671us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-12-310000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-12-310000868671us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembergbci:HomeEquityPortfolioSegmentMember2019-12-310000868671us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2019-12-310000868671gbci:BusinessAssetsMember2020-09-300000868671us-gaap:ResidentialPortfolioSegmentMembergbci:BusinessAssetsMember2020-09-300000868671gbci:BusinessAssetsMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300000868671us-gaap:CommercialPortfolioSegmentMembergbci:BusinessAssetsMember2020-09-300000868671gbci:HomeEquityPortfolioSegmentMembergbci:BusinessAssetsMember2020-09-300000868671us-gaap:ConsumerPortfolioSegmentMembergbci:BusinessAssetsMember2020-09-300000868671us-gaap:ResidentialRealEstateMember2020-09-300000868671us-gaap:ResidentialRealEstateMemberus-gaap:ResidentialPortfolioSegmentMember2020-09-300000868671us-gaap:ResidentialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:ResidentialRealEstateMember2020-09-300000868671us-gaap:ResidentialRealEstateMembergbci:HomeEquityPortfolioSegmentMember2020-09-300000868671us-gaap:ResidentialRealEstateMemberus-gaap:ConsumerPortfolioSegmentMember2020-09-300000868671us-gaap:RealEstateMember2020-09-300000868671us-gaap:ResidentialPortfolioSegmentMemberus-gaap:RealEstateMember2020-09-300000868671us-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:RealEstateMember2020-09-300000868671us-gaap:RealEstateMembergbci:HomeEquityPortfolioSegmentMember2020-09-300000868671us-gaap:RealEstateMemberus-gaap:ConsumerPortfolioSegmentMember2020-09-300000868671gbci:OtherMember2020-09-300000868671gbci:OtherMemberus-gaap:ResidentialPortfolioSegmentMember2020-09-300000868671gbci:OtherMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300000868671gbci:OtherMemberus-gaap:CommercialPortfolioSegmentMember2020-09-300000868671gbci:OtherMembergbci:HomeEquityPortfolioSegmentMember2020-09-300000868671gbci:OtherMemberus-gaap:ConsumerPortfolioSegmentMember2020-09-30gbci:Loan0000868671us-gaap:PassMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300000868671us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SpecialMentionMember2020-09-300000868671us-gaap:SubstandardMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300000868671us-gaap:DoubtfulMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2020-09-300000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2020-09-300000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2020-09-300000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2020-09-300000868671us-gaap:DoubtfulMemberus-gaap:CommercialPortfolioSegmentMember2020-09-300000868671us-gaap:PerformingFinancingReceivableMemberus-gaap:ResidentialPortfolioSegmentMember2020-09-300000868671us-gaap:ResidentialPortfolioSegmentMembergbci:NonperformingFinancialInstruments3089DaysPastDueMember2020-09-300000868671us-gaap:ResidentialPortfolioSegmentMembergbci:NonperformingFinancialInstrumentsNonAccrualAnd90DaysOrMorePastDueMember2020-09-300000868671us-gaap:PerformingFinancingReceivableMembergbci:HomeEquityPortfolioSegmentMember2020-09-300000868671gbci:HomeEquityPortfolioSegmentMembergbci:NonperformingFinancialInstruments3089DaysPastDueMember2020-09-300000868671gbci:HomeEquityPortfolioSegmentMembergbci:NonperformingFinancialInstrumentsNonAccrualAnd90DaysOrMorePastDueMember2020-09-300000868671us-gaap:PerformingFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2020-09-300000868671gbci:NonperformingFinancialInstruments3089DaysPastDueMemberus-gaap:ConsumerPortfolioSegmentMember2020-09-300000868671gbci:NonperformingFinancialInstrumentsNonAccrualAnd90DaysOrMorePastDueMemberus-gaap:ConsumerPortfolioSegmentMember2020-09-300000868671us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ResidentialRealEstateMember2019-12-310000868671us-gaap:CommercialRealEstateMemberus-gaap:CommercialPortfolioSegmentMember2019-12-310000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMember2019-12-310000868671gbci:HomeEquityHomeEquityLineofCreditMemberus-gaap:ConsumerPortfolioSegmentMember2019-12-310000868671us-gaap:ConsumerLoanMemberus-gaap:ConsumerPortfolioSegmentMember2019-12-3100008686712019-01-012019-12-310000868671us-gaap:ResidentialPortfolioSegmentMemberus-gaap:ResidentialRealEstateMember2019-01-012019-12-310000868671us-gaap:CommercialRealEstateMemberus-gaap:CommercialPortfolioSegmentMember2019-01-012019-12-310000868671us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMember2019-01-012019-12-310000868671gbci:HomeEquityHomeEquityLineofCreditMemberus-gaap:ConsumerPortfolioSegmentMember2019-01-012019-12-310000868671us-gaap:ConsumerLoanMemberus-gaap:ConsumerPortfolioSegmentMember2019-01-012019-12-310000868671gbci:CertifiedDevelopmentEntitiesMember2020-01-012020-09-300000868671us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-09-300000868671us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2019-12-310000868671us-gaap:OtherNoncurrentAssetsMember2020-09-300000868671us-gaap:OtherNoncurrentAssetsMember2019-12-310000868671gbci:LowIncomeHousingTaxCreditMember2020-01-012020-09-300000868671gbci:QualifiedAffordableHousingProjectInvestmentsMember2020-09-300000868671us-gaap:MaturityOvernightMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2020-09-300000868671us-gaap:MaturityOvernightMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-12-310000868671us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:MaturityOvernightMember2020-09-300000868671us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:MaturityOvernightMember2019-12-310000868671us-gaap:MaturityOvernightMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2020-09-300000868671us-gaap:MaturityOvernightMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2019-12-310000868671us-gaap:MaturityOvernightMemberus-gaap:CommercialMortgageBackedSecuritiesMember2020-09-300000868671us-gaap:MaturityOvernightMemberus-gaap:CommercialMortgageBackedSecuritiesMember2019-12-310000868671us-gaap:MaturityOvernightMember2020-09-300000868671us-gaap:MaturityOvernightMember2019-12-310000868671us-gaap:InterestRateCapMember2020-03-310000868671us-gaap:InterestRateCapMember2020-03-012020-03-310000868671srt:MinimumMemberus-gaap:InterestRateCapMember2020-03-310000868671srt:MaximumMemberus-gaap:InterestRateCapMember2020-03-310000868671us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateCapMember2020-09-300000868671us-gaap:InterestRateCapMember2020-01-012020-09-300000868671us-gaap:InterestRateSwapMember2019-09-300000868671us-gaap:InterestRateSwapMember2019-09-012019-09-300000868671us-gaap:InterestRateSwapMember2020-01-012020-09-300000868671us-gaap:InterestRateSwapMember2019-01-012019-09-300000868671us-gaap:OtherComprehensiveIncomeMemberus-gaap:InterestRateContractMember2020-07-012020-09-300000868671us-gaap:OtherComprehensiveIncomeMemberus-gaap:InterestRateContractMember2019-07-012019-09-300000868671us-gaap:OtherComprehensiveIncomeMemberus-gaap:InterestRateContractMember2020-01-012020-09-300000868671us-gaap:OtherComprehensiveIncomeMemberus-gaap:InterestRateContractMember2019-01-012019-09-300000868671us-gaap:InterestRateContractMember2020-07-012020-09-300000868671us-gaap:InterestRateContractMember2019-07-012019-09-300000868671us-gaap:InterestRateContractMember2020-01-012020-09-300000868671us-gaap:InterestRateContractMember2019-01-012019-09-300000868671us-gaap:InterestRateLockCommitmentsMember2020-09-300000868671us-gaap:InterestRateLockCommitmentsMember2019-12-310000868671us-gaap:InterestRateLockCommitmentsMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-09-300000868671us-gaap:InterestRateLockCommitmentsMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-12-310000868671us-gaap:ForwardContractsMember2020-09-300000868671us-gaap:ForwardContractsMember2019-12-310000868671us-gaap:ForwardContractsMemberus-gaap:OtherLiabilitiesMember2020-09-300000868671us-gaap:ForwardContractsMemberus-gaap:OtherLiabilitiesMember2019-12-310000868671us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2018-12-310000868671us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2018-12-310000868671us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2018-12-310000868671us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-01-012019-09-300000868671us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-01-012019-09-300000868671us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-09-300000868671us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-09-300000868671us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-09-300000868671us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-12-310000868671us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-12-310000868671us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-12-310000868671us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-01-012020-09-300000868671us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-01-012020-09-300000868671us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-09-300000868671us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-09-300000868671us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-09-300000868671gbci:LoansHeldForSaleMembergbci:GainLossonSaleofLoansMember2020-01-012020-09-300000868671gbci:LoansHeldForSaleMembergbci:GainLossonSaleofLoansMember2019-01-012019-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-09-300000868671us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300000868671us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-09-300000868671us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-09-300000868671us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateBondSecuritiesMember2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-09-300000868671us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300000868671us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-09-300000868671us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-09-300000868671us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-09-300000868671us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300000868671us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-09-300000868671us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-09-300000868671us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMember2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-09-300000868671us-gaap:InterestRateCapMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300000868671us-gaap:InterestRateCapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-09-300000868671us-gaap:InterestRateCapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-09-300000868671us-gaap:InterestRateCapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-09-300000868671us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300000868671us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-09-300000868671us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-09-300000868671us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-09-300000868671us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300000868671us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-09-300000868671us-gaap:InterestRateSwapMember2020-09-300000868671us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-09-300000868671us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-09-300000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2019-12-310000868671us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000868671us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310000868671us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000868671us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateBondSecuritiesMember2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueInputsLevel3Member2019-12-310000868671us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000868671us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310000868671us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000868671us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310000868671us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000868671us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310000868671us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000868671us-gaap:CommercialMortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMember2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000868671us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310000868671us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000868671us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310000868671us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000868671us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310000868671us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310000868671us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310000868671us-gaap:InterestRateSwapMember2019-12-310000868671us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310000868671us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310000868671us-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-30gbci:Input0000868671us-gaap:FairValueInputsLevel3Membersrt:MinimumMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:CostApproachValuationTechniqueMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:CostApproachValuationTechniqueMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMembersrt:MinimumMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:CostApproachValuationTechniqueMembersrt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671srt:WeightedAverageMemberus-gaap:CostApproachValuationTechniqueMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMembersrt:MinimumMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMembergbci:CombinedApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMembersrt:MinimumMembergbci:CombinedApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMembergbci:CombinedApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMembergbci:CombinedApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300000868671us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMembersrt:MinimumMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671us-gaap:FairValueInputsLevel3Membersrt:MinimumMemberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputComparabilityAdjustmentMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputComparabilityAdjustmentMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputComparabilityAdjustmentMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671us-gaap:CostApproachValuationTechniqueMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671us-gaap:CostApproachValuationTechniqueMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMembersrt:MinimumMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671us-gaap:CostApproachValuationTechniqueMembersrt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671srt:WeightedAverageMemberus-gaap:CostApproachValuationTechniqueMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCostToSellMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671us-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputComparabilityAdjustmentMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310000868671us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-09-300000868671us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2020-09-300000868671us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2020-09-300000868671us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2020-09-300000868671us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310000868671us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Member2019-12-310000868671us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2019-12-310000868671us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2019-12-310000868671gbci:StateBankOfArizonaMember2020-02-290000868671gbci:StateBankOfArizonaMember2020-02-292020-02-290000868671gbci:StateBankOfArizonaMember2020-02-292020-09-300000868671gbci:CurrentYearAcquisitionsMember2020-07-012020-09-300000868671gbci:CurrentYearAcquisitionsMember2019-07-012019-09-300000868671gbci:CurrentYearAcquisitionsMember2020-01-012020-09-300000868671gbci:CurrentYearAcquisitionsMember2019-01-012019-09-30


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
____________________________________________________________
FORM 10-Q
____________________________________________________________

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________             
Commission file number 000-18911
____________________________________________________________
GLACIER BANCORP, INC.
(Exact name of registrant as specified in its charter)
 ____________________________________________________________
Montana81-0519541
(State or other jurisdiction of incorporation or organization)(IRS Employer Identification No.)
49 Commons LoopKalispell,Montana59901
(Address of principal executive offices)(Zip Code)
(406)756-4200
(Registrant’s telephone number, including area code)
 ____________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueGBCINASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes    No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes    No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No
The number of shares of Registrant’s common stock outstanding on October 15, 2020 was 95,414,850. No preferred shares are issued or outstanding.




TABLE OF CONTENTS
 


 Page
Part I. Financial Information
Item 1 – Financial Statements





ABBREVIATIONS/ACRONYMS

 

ACL or allowance – allowance for credit losses
ALCO – Asset Liability Committee
ASC – Accounting Standards CodificationTM
ASU – Accounting Standards Update
ATM – automated teller machine
Bank – Glacier Bank
CARES Act – Coronavirus Aid, Relief, and Economic Security Act
CDE – Certified Development Entity
CDFI Fund – Community Development Financial Institutions Fund
CECL – current expected credit losses
CEO – Chief Executive Officer
CFO – Chief Financial Officer
Company – Glacier Bancorp, Inc.
COVID-19 – coronavirus disease of 2019
DDA – demand deposit account
Fannie Mae – Federal National Mortgage Association
FASB – Financial Accounting Standards Board
FDIC – Federal Deposit Insurance Corporation
FHLB – Federal Home Loan Bank
Final Rules – final rules implemented by the federal banking agencies that established a
  new comprehensive regulatory capital framework
FRB – Federal Reserve Bank
Freddie Mac – Federal Home Loan Mortgage Corporation
GAAP – accounting principles generally accepted in the United States of America
GDP – gross domestic product
Ginnie Mae – Government National Mortgage Association
Interest rate locks - residential real estate derivatives for commitments
LIBOR – London Interbank Offered Rate
LIHTC – Low Income Housing Tax Credit
NMTC – New Markets Tax Credit
NOW – negotiable order of withdrawal
NRSRO – Nationally Recognized Statistical Rating Organizations
OCI – other comprehensive income
OREO – other real estate owned
PCD – purchased credit-deteriorated
PPP – Paycheck Protection Program
Repurchase agreements – securities sold under agreements to repurchase
ROU – right-of-use
S&P – Standard and Poor’s
SBA – United States Small Business Administration
SBAZ – State Bank Corp. and its subsidiary, State Bank of Arizona
SEC – United States Securities and Exchange Commission
TBA – to-be-announced
TDR – troubled debt restructuring
VIE – variable interest entity







GLACIER BANCORP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
(Dollars in thousands, except per share data)September 30,
2020
December 31,
2019
Assets
Cash on hand and in banks$249,245 198,639 
Federal funds sold590  
Interest bearing cash deposits520,044 132,322 
Cash and cash equivalents769,879 330,961 
Debt securities, available-for-sale4,125,548 2,575,252 
Debt securities, held-to-maturity193,509 224,611 
Total debt securities4,319,057 2,799,863 
Loans held for sale, at fair value147,937 69,194 
Loans receivable11,618,731 9,512,810 
Allowance for credit losses(164,552)(124,490)
Loans receivable, net11,454,179 9,388,320 
Premises and equipment, net326,925 310,309 
Other real estate owned5,361 5,142 
Accrued interest receivable91,393 56,047 
Deferred tax asset 2,037 
Core deposit intangible, net58,121 63,286 
Goodwill514,013 456,418 
Non-marketable equity securities10,366 11,623 
Bank-owned life insurance123,095 109,428 
Other assets105,741 81,371 
Total assets$17,926,067 13,683,999 
Liabilities
Non-interest bearing deposits$5,479,311 3,696,627 
Interest bearing deposits8,820,577 7,079,830 
Securities sold under agreements to repurchase965,668 569,824 
Federal Home Loan Bank advances7,318 38,611 
Other borrowed funds32,967 28,820 
Subordinated debentures139,918 139,914 
Accrued interest payable3,951 4,686 
Deferred tax liability17,227  
Other liabilities204,041 164,954 
Total liabilities15,670,978 11,723,266 
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
954 923 
Paid-in capital1,493,928 1,378,534 
Retained earnings - substantially restricted629,109 541,050 
Accumulated other comprehensive income131,098 40,226 
Total stockholders’ equity2,255,089 1,960,733 
Total liabilities and stockholders’ equity$17,926,067 13,683,999 
Number of common stock shares issued and outstanding95,413,743 92,289,750 
See accompanying notes to unaudited condensed consolidated financial statements.
4



GLACIER BANCORP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 Three Months endedNine Months ended
(Dollars in thousands, except per share data)September 30,
2020
September 30,
2019
September 30,
2020
September 30,
2019
Interest Income
Investment securities$25,381 21,357 72,228 64,600 
Residential real estate loans11,592 12,156 35,216 34,345 
Commercial loans109,514 97,224 314,541 268,806 
Consumer and other loans11,000 11,658 33,771 33,145 
Total interest income157,487 142,395 455,756 400,896 
Interest Expense
Deposits3,952 6,214 14,120 17,179 
Securities sold under agreements to repurchase886 999 2,783 2,687 
Federal Home Loan Bank advances70 2,035 684 8,937 
Other borrowed funds
173 47 473 123 
Subordinated debentures1,003 1,652 3,705 5,014 
Total interest expense6,084 10,947 21,765 33,940 
Net Interest Income151,403 131,448 433,991 366,956 
Credit loss expense2,869  39,165 57 
Net interest income after credit loss expense
148,534 131,448 394,826 366,899 
Non-Interest Income
Service charges and other fees13,404 15,138 38,790 53,178 
Miscellaneous loan fees and charges2,084 1,775 5,051 3,934 
Gain on sale of loans35,516 10,369 73,236 23,929 
Gain on sale of debt securities24 13,811 1,015 14,158 
Other income2,639 1,956 10,071 7,158 
Total non-interest income53,667 43,049 128,163 102,357 
Non-Interest Expense
Compensation and employee benefits64,866 62,509 182,507 167,210 
Occupancy and equipment9,369 8,731 27,945 25,348 
Advertising and promotions2,779 2,719 7,404 7,874 
Data processing5,597 4,466 15,921 12,420 
Other real estate owned186 166 373 496 
Regulatory assessments and insurance1,495 593 3,622 3,726 
Loss on termination of hedging activities 13,528  13,528 
Core deposit intangibles amortization2,612 2,360 7,758 5,919 
Other expenses18,786 15,603 50,229 43,154 
Total non-interest expense105,690 110,675 295,759 279,675 
Income Before Income Taxes96,511 63,822 227,230 189,581 
Federal and state income tax expense18,754 12,212 42,690 36,447 
Net Income$77,757 51,610 184,540 153,134 
Basic earnings per share$0.81 0.57 1.95 1.76 
Diluted earnings per share$0.81 0.57 1.95 1.76 
Dividends declared per share$0.30 0.29 0.88 0.82 
Average outstanding shares - basic95,411,656 90,294,811 94,704,198 86,911,402 
Average outstanding shares - diluted95,442,576 90,449,195 94,747,894 87,082,178 

See accompanying notes to unaudited condensed consolidated financial statements.
5



GLACIER BANCORP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 Three Months endedNine Months ended
(Dollars in thousands)September 30,
2020
September 30,
2019
September 30,
2020
September 30,
2019
Net Income$77,757 51,610 184,540 153,134 
Other Comprehensive Income, Net of Tax
Unrealized gains on available-for-sale securities
1,693 11,113 123,262 87,442 
Reclassification adjustment for gains included in net income
(24)(13,811)(1,014)(14,166)
Net unrealized gains (losses) on available-for-sale securities
1,669 (2,698)122,248 73,276 
Tax effect(424)684 (30,979)(18,568)
Net of tax amount1,245 (2,014)91,269 54,708 
Unrealized losses on derivatives used for cash flow hedges
(76)(1,393)(532)(7,047)
Reclassification adjustment for losses included in net income
 10,315  10,816 
Net unrealized (losses) gains on derivatives used for cash flow hedges
(76)8,922 (532)3,769 
Tax effect20 (2,261)135 (955)
Net of tax amount(56)6,661 (397)2,814 
Total other comprehensive income, net of tax
1,189 4,647 90,872 57,522 
Total Comprehensive Income$78,946 56,257 275,412 210,656 


























See accompanying notes to unaudited condensed consolidated financial statements.
6



GLACIER BANCORP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES
IN STOCKHOLDERS’ EQUITY
Three Months ended September 30, 2020 and 2019
 
(Dollars in thousands, except per share data)Common StockPaid-in CapitalRetained
Earnings
Substantially Restricted
Accumulated
Other Compre-
hensive Income
 
SharesAmountTotal
Balance at July 1, 201986,637,394 $866 1,139,289 503,773 43,448 1,687,376 
Net income— — — 51,610 — 51,610 
Other comprehensive income— — — — 4,647 4,647 
Cash dividends declared ($0.29 per share)
— — — (26,784)— (26,784)
Stock issued in connection with acquisitions
5,473,276 55 229,330 — — 229,385 
Stock issuances under stock incentive plans
69,948 1 (1)— —  
Stock-based compensation and related taxes
— — 7,167 — — 7,167 
Balance at September 30, 201992,180,618 $922 1,375,785 528,599 48,095 1,953,401 
Balance at July 1, 202095,409,061 $954 1,492,817 580,035 129,909 2,203,715 
Net income— — — 77,757 — 77,757 
Other comprehensive income— — — — 1,189 1,189 
Cash dividends declared ($0.30 per share)
— — — (28,683)— (28,683)
Stock issuances under stock incentive plans
4,682   — —  
Stock-based compensation and related taxes
— — 1,111 — — 1,111 
Balance at September 30, 202095,413,743 $954 1,493,928 629,109 131,098 2,255,089 


















See accompanying notes to unaudited condensed consolidated financial statements.
7




GLACIER BANCORP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES
IN STOCKHOLDERS’ EQUITY
Nine Months ended September 30, 2020 and 2019
 
(Dollars in thousands, except per share data)Common StockPaid-in CapitalRetained
Earnings
Substantially Restricted
Accumulated
Other Compre-
hensive (Loss) Income
 
SharesAmountTotal
Balance at January 1, 201984,521,692 $845 1,051,253 473,183 (9,427)1,515,854 
Net income— — — 153,134 — 153,134 
Other comprehensive income— — — — 57,522 57,522 
Cash dividends declared ($0.82 per share)
— — — (72,260)— (72,260)
Stock issued in connection with acquisitions
7,519,617 75 316,463 — — 316,538 
Stock issuances under stock incentive plans
139,309 2 (2)— —  
Stock-based compensation and related taxes
— — 8,071 — — 8,071 
Cumulative-effect of accounting changes
— — — (25,458)— (25,458)
Balance at September 30, 201992,180,618 $922 1,375,785 528,599 48,095 1,953,401 
Balance at January 1, 202092,289,750 $923 1,378,534 541,050 40,226 1,960,733 
Net income— — — 184,540 — 184,540 
Other comprehensive income— — — — 90,872 90,872 
Cash dividends declared ($0.88 per share)
— — — (84,134)— (84,134)
Stock issued in connection with acquisitions
3,007,044 30 112,103 — — 112,133 
Stock issuances under stock incentive plans
116,949 1 (1)— —  
Stock-based compensation and related taxes
— — 3,292 — — 3,292 
Cumulative-effect of accounting changes
— — — (12,347)— (12,347)
Balance at September 30, 202095,413,743 $954 1,493,928 629,109 131,098 2,255,089 











See accompanying notes to unaudited condensed consolidated financial statements.
8



GLACIER BANCORP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 Nine Months ended
(Dollars in thousands)September 30,
2020
September 30,
2019
Operating Activities
Net income$184,540 153,134 
Adjustments to reconcile net income to net cash provided by operating activities:
Credit loss expense39,165 57 
Net amortization of debt securities10,830 11,687 
Net accretion of purchase accounting adjustments
and deferred loan fees and costs
(23,369)(2,680)
Amortization of debt modification costs 4,630 
Origination of loans held for sale(1,393,224)(671,038)
Proceeds from loans held for sale1,400,697 633,085 
Gain on sale of loans(73,236)(23,929)
Gain on sale of debt securities(1,015)(14,158)
Bank-owned life insurance income, net(2,059)(1,629)
Stock-based compensation, net of tax benefits2,829 6,554 
Depreciation and amortization of premises and equipment15,124 13,713 
Gain on sale and write-downs of other real estate owned, net(64)(288)
Amortization of core deposit intangibles7,758 5,919 
Amortization of investments in variable interest entities8,244 6,767 
Net increase in accrued interest receivable(33,558)(5,348)
Net increase in other assets(22,729)(367)
Net (decrease) increase in accrued interest payable(861)61 
Net decrease in other liabilities(5,315)(1,730)
Net cash provided by operating activities113,757 114,440 
Investing Activities
Sales of available-for-sale debt securities 711,268 
Maturities, prepayments and calls of available-for-sale debt securities545,191 457,299 
Purchases of available-for-sale debt securities(1,839,308)(839,835)
Maturities, prepayments and calls of held-to-maturity debt securities29,530 48,940 
Principal collected on loans2,978,796 2,497,073 
Loan originations(4,627,653)(2,900,692)
Net additions to premises and equipment(8,140)(14,230)
Proceeds from sale of other real estate owned2,140 2,960 
Proceeds from redemption of non-marketable equity securities76,275 115,436 
Purchases of non-marketable equity securities(71,397)(93,397)
Investments in variable interest entities(7,975)(7,956)
Net cash received from acquisitions43,713 79,334 
Net cash (used in) provided by investing activities(2,878,828)56,200 




See accompanying notes to unaudited condensed consolidated financial statements.
9



GLACIER BANCORP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
 
 Nine Months ended
(Dollars in thousands)September 30,
2020
September 30,
2019
Financing Activities
Net increase in deposits$2,920,429 377,986 
Net increase in securities sold under agreements to repurchase388,595 161,191 
Net decrease in short-term Federal Home Loan Bank advances(30,000)(285,000)
Proceeds from long-term Federal Home Loan Bank advances30,000  
Repayments of long-term Federal Home Loan Bank advances(31,271)(151,073)
Net increase in other borrowed funds463 97 
Cash dividends paid(73,999)(70,970)
Tax withholding payments for stock-based compensation(1,023)(277)
Proceeds from stock option exercises795  
Net cash provided by financing activities3,203,989 31,954 
Net increase in cash, cash equivalents and restricted cash438,918 202,594 
Cash, cash equivalents and restricted cash at beginning of period330,961 203,790 
Cash, cash equivalents and restricted cash at end of period$769,879 406,384 
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest$22,626 33,878 
Cash paid during the period for income taxes43,944 33,032 
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Sale and refinancing of other real estate owned$215 7 
Transfer of loans to other real estate owned2,062 2,347 
Right-of-use assets obtained in exchange for operating lease liabilities7,343 3,910 
Dividends declared during the period but not paid28,799 26,874 
Acquisitions
Fair value of common stock shares issued112,133 316,538 
Cash consideration13,721 16,424 
Fair value of assets acquired745,420 1,190,267 
Liabilities assumed619,565 1,024,141 













See accompanying notes to unaudited condensed consolidated financial statements.
10



GLACIER BANCORP, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
Note 1. Nature of Operations and Summary of Significant Accounting Policies

General
Glacier Bancorp, Inc. (“Company”) is a Montana corporation headquartered in Kalispell, Montana. The Company provides a full range of banking services to individuals and businesses in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona and Nevada through its wholly-owned bank subsidiary, Glacier Bank (“Bank”). The Company offers a wide range of banking products and services, including: 1) retail banking; 2) business banking; 3) real estate, commercial, agriculture and consumer loans; and 4) mortgage origination services. The Company serves individuals, small to medium-sized businesses, community organizations and public entities.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature. These interim financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements and they should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for the nine months ended September 30, 2020 are not necessarily indicative of the results anticipated for the year ending December 31, 2020. The condensed consolidated statement of financial condition of the Company as of December 31, 2019 has been derived from the audited consolidated statements of the Company as of that date.

The Company is a defendant in legal proceedings arising in the normal course of business. In the opinion of management, the disposition of pending litigation will not have a material affect on the Company’s consolidated financial position, results of operations or liquidity.

Material estimates that are particularly susceptible to significant change include: 1) the determination of the allowance for credit losses (“ACL” or “allowance”) on loans; 2) the valuation of debt securities; 3) the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans; and 4) the evaluation of goodwill impairment. For the determination of the ACL on loans and real estate valuation estimates, management obtains independent appraisals (new or updated) for significant items. Estimates relating to the valuation of debt securities are obtained from independent third parties. Estimates relating to the evaluation of goodwill for impairment are determined based on internal calculations using significant independent party inputs.

Principles of Consolidation
The consolidated financial statements of the Company include the parent holding company and the Bank, which consists of sixteen bank divisions and a corporate division. The corporate division includes the Bank’s investment portfolio, wholesale borrowings and other centralized functions. The Bank divisions operate under separate names, management teams and advisory directors. The Company considers the Bank to be its sole operating segment as the Bank 1) engages in similar bank business activity from which it earns revenues and incurs expenses; 2) the operating results of the Bank are regularly reviewed by the Chief Executive Officer (“CEO”) (i.e., the chief operating decision maker) who makes decisions about resources to be allocated to the Bank; and 3) financial information is available for the Bank. All significant inter-company transactions have been eliminated in consolidation.

The Bank has subsidiary interests in variable interest entities (“VIE”) for which the Bank has both the power to direct the VIE’s significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could potentially be significant to the VIE. These subsidiary interests are included in the Company’s consolidated financial statements. The Bank also has subsidiary interests in VIEs for which the Bank does not have a controlling financial interest and is not the primary beneficiary. These subsidiary interests are not included in the Company’s consolidated financial statements.


11



The parent holding company owns non-bank subsidiaries that have issued trust preferred securities. The trust subsidiaries are not included in the Company’s consolidated financial statements. The Company's investments in the trust subsidiaries are included in other assets on the Company's statements of financial condition.

On February 29, 2020, the Company completed the acquisition of State Bank Corp., the bank holding company for State Bank of Arizona, a community bank based in Lake Havasu City, Arizona (collectively, “SBAZ”). The business combination was accounted for using the acquisition method, with the results of operations included in the Company’s consolidated financial statements as of the acquisition date. For additional information relating to mergers and acquisitions, see Note 13.

Debt Securities
On January 1, 2020, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses, which significantly changed the allowance for credit loss accounting policies for debt securities. The following debt securities and allowance for credit loss accounting policies are presented under Accounting Standards Codification™ (“ASC”) Topic 326, whereas prior periods are presented as described in the Company’s 2019 Annual Report on Form 10-K.

Debt securities for which the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and are carried at amortized cost. Debt securities held primarily for the purpose of selling in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses included in income. Debt securities not classified as held-to-maturity or trading are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of income taxes, as a separate component of other comprehensive income (“OCI”). Premiums and discounts on debt securities are amortized or accreted into income using a method that approximates the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. The Company does not have any debt securities classified as trading securities. When the Company acquires another entity, it designates all debt securities as available-for-sale at acquisition date and records the debt securities at fair value.

The Company reviews and analyzes the various risks that may be present within the investment portfolio on an ongoing basis, including market risk, credit risk and liquidity risk. Market risk is the risk to an entity’s financial condition resulting from adverse changes in the value of its holdings arising from movements in interest rates, foreign exchange rates, equity prices or commodity prices. The Company assesses the market risk of individual debt securities as well as the investment portfolio as a whole. Credit risk, broadly defined, is the risk that an issuer or counterparty will fail to perform on an obligation. The credit rating of a security is considered the primary credit quality indicator for debt securities. Liquidity risk refers to the risk that a security will not have an active and efficient market in which the security can be sold.

A debt security is investment grade if the issuer has adequate capacity to meet its commitment over the expected life of the investment, i.e., the risk of default is low and full and timely repayment of interest and principal is expected. To determine investment grade status for debt securities, the Company conducts due diligence of the creditworthiness of the issuer or counterparty prior to acquisition and ongoing thereafter consistent with the risk characteristics of the security and the overall risk of the investment portfolio. Credit quality due diligence takes into account the extent to which a security is guaranteed by the U.S. government and other agencies of the U.S. government. The depth of the due diligence is based on the complexity of the structure, the size of the security, and takes into account material positions and specific groups of securities or stratifications for analysis and review of similar risk positions. The due diligence includes consideration of payment performance, collateral adequacy, internal analyses, third party research and analytics, external credit ratings and default statistics.

The Company has acquired debt securities through acquisitions and if the securities have more than insignificant credit deterioration since origination, they are designated as purchased credit-deteriorated (“PCD”) securities. An ACL is determined using the same methodology as with other debt securities. The sum of a security’s purchase price and ACL becomes the initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the debt security is a noncredit discount or premium, which is amortized into interest income over the life of the security. Subsequent changes to the allowance are recorded through credit loss expense.

For additional information relating to debt securities, see Note 2.


12



Allowance for Credit Losses - Available-for-Sale Debt Securities
For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more-likely-than-not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through other expense. For the available-for-sale securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In such assessment, the Company considers the extent to which fair value is less than amortized cost, if there are any changes to the investment grade of the security by a rating agency, and if there any adverse conditions that impact the security. If this assessment indicates a credit loss exists, the present value of the cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any estimated credit losses that have not been recorded through an ACL are recognized in OCI.

The Company has elected to exclude accrued interest from the estimate of credit losses for available-for-sale debt securities. As part of its non-accrual policy, the Company charges-off uncollectable interest at the time it is determined to be uncollectable.

Allowance for Credit Losses - Held-to-Maturity Debt Securities
For estimating the allowance for held-to-maturity debt securities that share similar risk characteristics with other securities, such securities are pooled based on major security type. For pools of such securities with similar risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources and adjusted for the expected effects of reasonable and supportable forecasts over the expected lives of the securities on those historical credit losses. Expected credit losses on securities in the held-to-maturity portfolio that do not share similar risk characteristics with any of the pools of debt securities are individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the securities.

The Company has elected to exclude accrued interest from the estimate of credit losses for held-to-maturity debt securities. As part of its non-accrual policy, the Company charges off uncollectable interest at the time it is determined to be uncollectable.

Loans Receivable
On January 1, 2020, the Company adopted FASB ASU 2016-13, Financial Instruments - Credit Losses, which significantly changed the loan and allowance for credit loss accounting policies. The following loan and allowance for credit loss accounting policies are presented under ASC Topic 326, whereas prior periods are presented in accordance with the incurred loss model as disclosed in the Company’s 2019 Annual Report on Form 10-K.

The Company’s loan segments or classes are based on the purpose of the loan and consist of residential real estate, commercial real estate, other commercial, home equity, and other consumer loans. Loans that are intended to be held-to-maturity are reported at the unpaid principal balance less net charge-offs and adjusted for deferred fees and costs on originated loans and unamortized premiums or discounts on acquired loans. Fees and costs on originated loans and premiums or discounts on acquired loans are deferred and subsequently amortized or accreted as a yield adjustment over the expected life of the loan utilizing the interest or straight-line methods. The interest method is utilized for loans with scheduled payment terms and the objective is to calculate periodic interest income at a constant effective yield. The straight-line method is utilized for revolving lines of credit or loans with no scheduled payment terms. When a loan is paid off prior to maturity, the remaining fees and costs on originated loans and premiums or discounts on acquired loans are immediately recognized into interest income.

Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans are designated non-accrual and the accrual of interest is discontinued when the collection of the contractual principal or interest is unlikely. A loan is typically placed on non-accrual when principal or interest is due and has remained unpaid for ninety days or more. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current period interest income. Subsequent payments on non-accrual loans are applied to the outstanding principal balance if doubt remains as to the ultimate collectability of the loan. Interest accruals are not resumed on partially charged-off loans. For other loans on non-accrual, interest accruals are resumed on such loans only when the loan is brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest.


13



The Company has acquired loans through acquisitions, some of which have experienced more than insignificant credit deterioration since origination. The Company considers all acquired non-accrual loans to be PCD loans. In addition, the Company considers loans accruing ninety days or more past due with estimated credit losses or substandard loans with estimated credit losses to be PCD loans. An ACL is determined using the same methodology as other loans held for investment. The ACL determined on a collective basis is allocated to individual loans. The sum of a loan’s purchase price and ACL becomes the initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through credit loss expense.

For additional information relating to loans, see Note 3.

Allowance for Credit Losses - Loans Receivable
The allowance for credit losses for loans receivable represents management’s estimate of credit losses over the expected contractual life of the loan portfolio. The estimate is determined based on the amortized cost of the loan portfolio including the loan balance adjusted for charge-offs, recoveries, deferred fees and costs, and loan discount and premiums. Recoveries are included only to the extent that such amounts were previously charged-off. The Company has elected to exclude accrued interest from the estimate of credit losses for loans. Determining the adequacy of the allowance is complex and requires a high degree of judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance in those future periods.

The allowance is increased for estimated credit losses which is recorded as expense. The portion of loans and overdraft balances determined by management to be uncollectible are charged-off as a reduction to the allowance and recoveries of amounts previously charged-off increase the allowance. The Company’s charge-off policy is consistent with bank regulatory standards. Consumer loans generally are charged-off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as other real estate owned (“OREO”) until such time as it is sold.

The expected credit loss estimate process involves procedures to consider the unique characteristics of each of its portfolio segments, which consist of residential real estate, commercial real estate, other commercial, home equity, and other consumer loans. When computing the allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history, credit and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. The Company has determined a four consecutive quarter forecasting period is a reasonable and supportable period. Expected credit loss for periods beyond reasonable and supportable forecast periods are determined based on a reversion method which reverts back to historical loss estimate over a four consecutive quarter period on a straight-line basis.

Credit quality is assessed and monitored by evaluating various attributes and the results of those evaluations are utilized in underwriting new loans and the process for estimating the expected credit losses. The following paragraphs describe the risk characteristics relevant to each portfolio segment.

Residential Real Estate.  Residential real estate loans are secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan segment include a large number of borrowers, geographic dispersion of market areas and the loans are originated for relatively smaller amounts.


14



Commercial Real Estate.  Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operation of the property securing the loan and/or the business conducted on the property securing the loan. Credit risk in these loans is impacted by the creditworthiness of a borrower, valuation of the property securing the loan and conditions within the local economies in the Company’s diverse, geographic market areas.

Commercial.  Commercial loans consist of loans to commercial customers for use in financing working capital needs, equipment purchases and business expansions. The loans in this segment are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations across the Company’s diverse, geographic market areas.

Home Equity.  Home equity loans consist of junior lien mortgages and first and junior lien lines of credit (revolving open-end and amortizing closed-end) secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the residential property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan segment are a large number of borrowers, geographic dispersion of market areas and the loans are originated for terms that range from 10 to 15 years.

Other Consumer.  The other consumer loan portfolio consists of various short-term loans such as automobile loans and loans for other personal purposes. Repayment of these loans is primarily dependent on the personal income of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s diverse, geographic market area) and the creditworthiness of a borrower.

The allowance is impacted by loan volumes, delinquency status, credit ratings, historical loss experiences, prepayment speeds, weighted average lives and other conditions influencing loss expectations, such as reasonable and supportable forecasts of economic conditions. The methodology for estimating the amount of expected credit losses reported in the allowance has two basic components: 1) individual loans that do not share similar risk characteristics with other loans and the measurement of expected credit losses for such individual loans; and 2) the expected credit losses for pools of loans that share similar risk characteristics.

Loans that do not Share Similar Risk Characteristics with Other Loans. For a loan that does not share similar risk characteristics with other loans, expected credit loss is measured based on the net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan. For these loans, the expected credit loss is equal to the amount by which the net realizable value of the loan is less than the amortized cost basis of the loan (which is net of previous charge-offs and deferred loan fees and costs), except when the loan is collateral-dependent, that is, when foreclosure is probable or the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In these cases, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale (rather than only on the operation) of the collateral. The Company has determined that non-accrual loans do not share similar risk characteristics with other loans and these loans are individually evaluated for estimated allowance for credit losses. The Company, through its credit monitoring process, may also identify other loans that do no share similar risk characteristics and individually evaluate such loans. The starting point for determining the fair value of collateral is to obtain external appraisals or evaluations (new or updated) which are generally obtained annually. The valuation techniques used in preparing appraisals or evaluations (new or updated) include the cost approach, income approach, sales comparison approach, or a combination of the preceding valuation techniques. The Company’s credit department reviews appraisals, giving consideration to the highest and best use of the collateral. The appraisals or evaluations (new or updated) are reviewed at least quarterly and more frequently based on current market conditions, including deterioration in a borrower’s financial condition and when property values may be subject to significant volatility. Adjustments may be made to the fair value of the collateral after review and acceptance of the collateral appraisal or evaluation (new or updated).


15



Loans that Share Similar Risk Characteristics with other Loans. For estimating the allowance for loans that share similar risk characteristics with other loans, such loans are segregated into loan segments. Loans are designated into loan segments based on loans pooled by product types and similar risk characteristics or areas of risk concentration. In determining the ACL, the Company derives an estimated credit loss assumption from a model that categorizes loan pools based on loan type which is further segregated by the credit quality indicators. This model calculates an expected loss percentage for each loan segment by considering the non-discounted simple annual average historical loss rate of each loan segment (calculated through an “open pool” method), multiplying the loss rate by the amortized loan balance and incorporating that segment’s internally generated prepayment speed assumption and contractually scheduled remaining principal pay downs on a loan level basis. The annual historical loss rates are adjusted over a reasonable economic forecast period by a multiplier that is calculated based upon current national economic forecasts as a proportion of each segment’s historical average loss levels. The Company will then revert from the economic forecast period back to the historical average loss rate in a straight-line basis. After the reversion period, the loans will be assumed to experience their historical loss rate for the remainder of their contractual lives. The model applies the expected loss rate over the projected cash flows at the the individual loan level and then aggregates the losses by loan segment in determining their quantitative allowance. The Company will also include qualitative adjustments to adjust the portfolio over the remaining lives of the loans to the extent the current or future market conditions are believed to vary substantially from historical conditions in regards to:
lending policies and procedures;
international, national, regional and local economic business conditions and developments that affect the collectability of the portfolio, including the condition of various markets;
the nature and volume of the loan portfolio including the terms of the loans;
the experience, ability, and depth of the lending management and other relevant staff;
the volume and severity of past due and adversely classified or graded loans and the volume of non-accrual loans;
the quality of our loan review system;
the value of underlying collateral for collateralized loans;
the existence and effect of any concentrations of credit, and changes in the level of concentrations; and
the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio.

The Company regularly reviews loans in the portfolio to assess credit quality indicators and to determine the appropriate loan classification and grading in accordance with applicable bank regulations. The primary credit quality indicator for residential and consumer loans is the days past due status, which consists of the following categories: 1) performing loans; 2) 30 to 89 days past due loans; and 3) non-accrual and ninety days or more past due loans. The primary credit quality indicator for commercial loans is the Company’s internal risk rating system, which includes the following categories: 1) pass loans; 2) special mention loans; 3) substandard loans; and 4) doubtful or loss loans. Such credit quality indicators are regularly monitored and incorporated into the Company’s allowance estimate. The following paragraphs further define the internal risk ratings for commercial loans.

Pass Loans. These ratings represent loans that are of acceptable, good or excellent quality with very limited to no risk. Loans that do not have one of the following ratings are considered pass loans.

Special Mention Loans. These ratings represent loans that are assigned special mention per the regulatory definition. Special mention loans are currently protected but are potentially weak. The credit risk may be relatively minor yet constitute an undue and unwarranted risk in light of the circumstances surrounding a specific loan. The rating may be used to identify credit with potential weaknesses that if not corrected may weaken the loan to the point of inadequately protecting the bank’s credit position. Examples include a lack of supervision, inadequate loan agreement, condition, or control of collateral, incomplete, or improper documentation, deviations from lending policy, and adverse trends in operations or economic conditions.

Substandard Loans. This rating represents loans that are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. A loan so classified must have a well-defined weakness that jeopardizes the liquidation of the debt. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregated amount of substandard loans, does not have to exist in an individual loan classified substandard.


16



Doubtful/Loss Loans. A loan classified as doubtful has the characteristics that make collection in full, on the basis of currently existing facts, conditions, and values, highly improbable. The possibility of loss is extremely high, but because of pending factors, which may work to the advantage and strengthening of the loan, its classification as loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. Loans are classified as loss when they are deemed to be not collectible and of such little value that continuance as an active asset of the Bank is not warranted. Loans classified as loss must be charged-off. Assignment of this classification does not mean that an asset has absolutely no recovery or salvage value, but that it is not practical or desirable to defer writing off a basically worthless asset, even though partial recovery may be attained in the future.

Restructured Loans
A restructured loan is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The Company periodically enters into restructure agreements with borrowers whereby the loans were previously identified as TDRs. When such circumstances occur, the Company carefully evaluates the facts of the subsequent restructure to determine the appropriate accounting and under certain circumstances it may be acceptable not to account for the subsequently restructured loan as a TDR. When assessing whether a concession has been granted by the Company, any prior forgiveness on a cumulative basis is considered a continuing concession. The Company has made the following types of loan modifications, some of which were considered a TDR:
reduction of the stated interest rate for the remaining term of the debt;
extension of the maturity date(s) at a stated rate of interest lower than the current market rate for newly originated debt having similar risk characteristics; and
reduction of the face amount of the debt as stated in the debt agreements.

The Company recognizes that while borrowers may experience deterioration in their financial condition, many continue to be creditworthy borrowers who have the willingness and capacity for debt repayment. In determining whether non-restructured or performing loans issued to a single or related party group of borrowers should continue to accrue interest when the borrower has other loans that are non-performing or are TDRs, the Company on a quarterly or more frequent basis performs an updated and comprehensive assessment of the willingness and capacity of the borrowers to timely and ultimately repay their total debt obligations, including contingent obligations. Such analysis takes into account current financial information about the borrowers and financially responsible guarantors, if any, including for example:
analysis of global, i.e., aggregate debt service for total debt obligations;
assessment of the value and security protection of collateral pledged using current market conditions and alternative market assumptions across a variety of potential future situations; and
loan structures and related covenants.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law which includes many provisions that impact the Company and its customers. The banking regulatory agencies have encouraged banks to work with borrowers who have been impacted by the coronavirus disease of 2019 (“COVID-19”) and the CARES Act, along with related regulatory guidance, allows banks to not designate certain modifications as TDRs that otherwise may have been classified as TDRs. In general, in order to qualify for such treatment, the modifications need to be short-term and made on a good faith basis in response to the COVID-19 pandemic to borrowers who were current prior to the modification. The Company has made such modifications to assist borrowers impacted by the COVID-19 pandemic.

The allowance for credit losses on a TDR is measured using the same method as all other loans held for investment. For a TDR that is individually reviewed and not collateral-dependent, the value of the concession can only be measured using the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest of the loan.


17



Allowance for Credit Losses - Off-Balance Sheet Credit Exposures
The Company maintains a separate allowance for off-balance sheet credit exposures, including unfunded loan commitments, which is included in other liabilities on the Company’s statements of financial condition. The Company estimates the amount of expected losses by calculating a commitment usage factor over the contractual period for exposures and applying the loss factors used in the allowance for credit loss methodology to the results of the usage calculation to estimate the liability for credit losses related to unfunded commitments for each loan type. No credit loss estimate is reported for off-balance sheet credit exposures that are unconditionally cancellable by the Bank or for unfunded amounts under such arrangements that may be drawn prior to the cancellation of the arrangement.

Leases
The Company leases certain land, premises and equipment from third parties. A lessee lease is classified as an operating lease unless it meets certain criteria (e.g., lease contains option to purchase that Company is reasonably certain to exercise), in which case it is classified as a finance lease. Effective January 1, 2019, operating leases are included in net premises and equipment and other liabilities on the Company’s statements of financial condition and lease expense for lease payments is recognized on a straight-line basis over the lease term. Finance leases are included in net premises and equipment and other borrowed funds on the Company’s statements of financial condition. Right-of-use (“ROU”) assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. An ROU asset represents the right to use the underlying asset for the lease term and also includes any direct costs and payments made prior to lease commencement and excludes lease incentives. When an implicit rate is not available, an incremental borrowing rate based on the information available at commencement date is used in determining the present value of the lease payments. A lease term may include an option to extend or terminate the lease when it is reasonably certain the option will be exercised. The Company accounts for lease and nonlease components (e.g., common-area maintenance) together as a single combined lease component for all asset classes. Short-term leases of