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Section 1: 8-K (8-K)

gbci-20201022
0000868671false00008686712020-10-222020-10-2200008686712020-07-232020-07-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________
FORM 8-K
____________________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 22, 2020

____________________________________________________________
GLACIER BANCORP, INC.
(Exact name of registrant as specified in its charter)
____________________________________________________________

Montana000-1891181-0519541
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(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)
____________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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 is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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.



Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 22, 2020, Glacier Bancorp, Inc. ("Company") issued a press release announcing its financial results for the quarter ended September 30, 2020. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein in its entirety by reference.

The information in this Item 2.02 and the Exhibit attached hereto is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such document or filing.

Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d)    Exhibits

99.1    Press Release dated October 22, 2020, announcing financial results for the quarter ended September 30, 2020.

104    Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Dated:October 22, 2020GLACIER BANCORP, INC.
/s/ Randall M. Chesler
By:Randall M. Chesler
President and Chief Executive Officer




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Section 2: EX-99.1 (EXHIBIT 99.1)

Document

405659204_gbcilogostatesmay20191.jpg

NEWS RELEASE
October 22, 2020

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

GLACIER BANCORP, INC. ANNOUNCES
RESULTS FOR THE QUARTER AND PERIOD ENDED SEPTEMBER 30, 2020

3rd Quarter 2020 Highlights:
Net income of $77.8 million for the current quarter, an increase of $26.2 million, or 51 percent, over the prior year third quarter net income of $51.6 million.
Current quarter diluted earnings per share of $0.81, an increase of 42 percent from the prior year third quarter diluted earnings per share of $0.57.
The loan portfolio organically increased $165 million, or 1 percent, in the current quarter and increased $1.626 billion, or 17 percent, from the prior year third quarter.
Core deposits increased $868 million, or 7 percent, during the current quarter, with non-interest bearing deposit growth of $436 million, or 9 percent. Core deposits organically increased $2.8 billion, or 26 percent, compared to the prior year third quarter, with non-interest bearing deposit growth of $1.6 billion, or 41 percent.
Gain on sale of loans of $35.5 million, increased $9.7 million, or 37 percent, over the prior quarter and increased $25.1 million, or 243 percent, compared to the prior year third quarter.
Interest expense of $6.1 million decreased $1.1 million, or 15 percent, over the prior quarter and decreased $4.9 million, or 44 percent, compared to the prior year third quarter.
Bank loan modifications related to the coronavirus disease of 2019 (“COVID-19”) decreased $1.049 billion during the current quarter to $466 million, or 4.58 percent of loans excluding PPP loans.
Non-performing assets as a percentage of subsidiary assets was 0.25 percent, which compared to 0.27 percent in the prior quarter and 0.40 percent in the prior year third quarter.
Early stage delinquencies (accruing 30-89 days past due) as a percentage of loans in the current quarter was 0.15 percent, which compared to 0.22 percent in the prior quarter and 0.31 percent in the prior year third quarter.
Declared a quarterly dividend of $0.30 per share, an increase of $0.01 per share or 3 percent over the prior quarter dividend. The Company has declared 142 consecutive quarterly dividends and has increased the dividend 46 times.

1



Year-to-Date 2020 Highlights:
Net income of $185 million for the first nine months of 2020, an increase of $31.4 million, or 21 percent, over the first nine months of 2019 net income of $153 million.
Diluted earnings per share of $1.95, an increase of 11 percent from the prior year first nine months diluted earnings per share of $1.76.
The Company originated U.S. Small Business Administration (“SBA”) Payroll Protection Program (“PPP”) loans for businesses in its communities. The Company originated 16,090 PPP loans in the amount of $1.472 billion.
The loan portfolio organically grew $1.654 billion, or 17 percent, during the first nine months of 2020. Excluding PPP loans, the loan portfolio organically increased $206 million, or 2 percent during the first nine months of 2020.
Core deposits organically increased $2.9 billion, or 27 percent, during the first nine months of 2020, with non-interest bearings deposit growth of $1.6 billion, or 44 percent.
Gain on sale of loans of $73.2 million, increased $49.3 million, or 206 percent, compared to the prior year first nine months.
Dividends declared of $0.88 per share, an increase of $0.06 per share, or 7 percent, over the prior year first nine months dividends of $0.82.
On February 29, 2020, the Company completed the acquisition of State Bank Corp., the parent company of State Bank of Arizona, a community bank based in Lake Havasu City, Arizona with total assets of $744 million.
During the current year, S&P Dow Jones Indices selected the Company to transition from the S&P SmallCap 600® to the S&P MidCap 400®.

2



Financial Highlights
 At or for the Three Months endedAt or for the Nine Months ended
(Dollars in thousands, except per share and market data)
Sep 30,
2020
Jun 30,
2020
Mar 31,
2020
Sep 30,
2019
Sep 30,
2020
Sep 30,
2019
Operating results
Net income$77,757 63,444 43,339 51,610 184,540 153,134 
Basic earnings per share$0.81 0.67 0.46 0.57 1.95 1.76 
Diluted earnings per share$0.81 0.66 0.46 0.57 1.95 1.76 
Dividends declared per share$0.30 0.29 0.29 0.29 0.88 0.82 
Market value per share
Closing$32.05 35.29 34.01 40.46 32.05 40.46 
High$38.13 46.54 46.10 42.61 46.54 45.47 
Low$30.05 30.30 26.66 37.70 26.66 37.58 
Selected ratios and other data
Number of common stock shares outstanding
95,413,74395,409,06195,408,27492,180,61895,413,74392,180,618
Average outstanding shares - basic95,411,65695,405,49393,287,67090,294,81194,704,19886,911,402
Average outstanding shares - diluted95,442,57695,430,40393,359,79290,449,19594,747,89487,082,178
Return on average assets (annualized)1.80 %1.57 %1.25 %1.55 %1.56 %1.63 %
Return on average equity (annualized)13.73 %11.68 %8.52 %10.92 %11.40 %12.17 %
Efficiency ratio49.16 %49.29 %52.55 %65.95 %50.21 %58.82 %
Dividend payout ratio37.04 %43.28 %63.04 %50.88 %45.13 %46.59 %
Loan to deposit ratio82.29 %86.45 %88.10 %88.71 %82.29 %88.71 %
Number of full time equivalent employees
2,9462,9542,9552,8022,9462,802
Number of locations193192192182193182
Number of ATMs250251247238250238

KALISPELL, Mont., Oct 22, 2020 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $77.8 million for the current quarter, an increase of $26.2 million, or 51 percent, from the $51.6 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.81 per share, an increase of 42 percent from the prior year third quarter diluted earnings per share of $0.57. Included in the current quarter was $793 thousand of acquisition-related expenses. “The Glacier team continues to do an outstanding job managing through a constantly changing and uncertain operating landscape while taking care of employees, customers and communities,” said Randy Chesler, President and Chief Executive Officer. “We are encouraged by the credit performance we see in our portfolio and believe that, in addition to our conservative credit culture, we are helped by the strong markets in which we operate as well as the increased movement into our markets as technology and business practices allow more people to consider different places to live.”

Net income for the nine months ended September 30, 2020 was $185 million, an increase of $31.4 million, or 21 percent, from the $153 million net income from the first nine months of the prior year. Diluted earnings per share for the first nine months of the current year was $1.95 per share, an increase of 11 percent, from the diluted earnings per share of $1.76 for the same period last year.

The Company continues to navigate through the coronavirus disease of 2019 (“COVID-19”) pandemic to ensure the safety of its employees and customers along with monitoring credit quality and protecting shareholder value. The Company’s geographic footprint has experienced varying levels of exposure and impact from COVID-19 and the Company’s pandemic team remains flexible in responding to the changing conditions in all the markets that it serves.
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In order to meet the needs of customers impacted by the pandemic, during the second quarter of 2020 the Company modified 3,054 loans in the amount of $1.515 billion primarily with short-term payment deferrals under six months. The majority of these modified loan deferral periods expired and the loans returned to regular payment status with only $466 million loans, or 5 percent, remaining deferred as of September 30, 2020.

In addition, the Company originated SBA PPP loans for businesses in its communities. The Company originated 16,090 PPP loans in the amount of $1.472 billion during the current year. During the current quarter, these loans provided an additional $9.3 million of interest income (including net deferred fees and costs) and $438 thousand of deferred compensation costs for a total increase in income of $9.8 million ($7.3 million net of tax).

On February 29, 2020, the Company completed the acquisition of State Bank Corp., the parent company of State Bank of Arizona, a community bank based in Lake Havasu City, Arizona (collectively, “SBAZ”). SBAZ provides banking services to individuals and businesses in Arizona with ten banking offices located in Bullhead City, Cottonwood, Kingman, Lake Havasu City, Phoenix, Prescott Valley and Prescott. Upon closing of the transaction, SBAZ merged into the Company's Foothills Bank division, which expanded the Company's footprint in Arizona to cover all major markets in the state and be a leading community bank in Arizona.

The Company’s results of operations and financial condition include the SBAZ acquisition and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:

State Bank Corp.
(Dollars in thousands)February 29,
2020
Total assets$745,420 
Debt securities142,174 
Loans receivable451,702 
Non-interest bearing deposits141,620 
Interest bearing deposits461,669 
Borrowings10,904 

4


Asset Summary
$ Change from
(Dollars in thousands)Sep 30,
2020
Jun 30,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2020
Dec 31,
2019
Sep 30,
2019
Cash and cash equivalents$769,879 547,610 330,961 406,384 222,269 438,918 363,495 
Debt securities, available-for-sale4,125,548 3,533,950 2,575,252 2,459,036 591,598 1,550,296 1,666,512 
Debt securities, held-to-maturity193,509 203,275 224,611 234,992 (9,766)(31,102)(41,483)
Total debt securities4,319,057 3,737,225 2,799,863 2,694,028 581,832 1,519,194 1,625,029 
Loans receivable
Residential real estate862,614 903,198 926,388 936,877 (40,584)(63,774)(74,263)
Commercial real estate6,201,817 6,047,692 5,579,307 5,548,174 154,125 622,510 653,643 
Other commercial3,593,322 3,547,249 2,094,254 2,145,257 46,073 1,499,068 1,448,065 
Home equity646,850 654,392 617,201 615,781 (7,542)29,649 31,069 
Other consumer314,128 300,847 295,660 294,999 13,281 18,468 19,129 
Loans receivable11,618,731 11,453,378 9,512,810 9,541,088 165,353 2,105,921 2,077,643 
Allowance for credit losses
(164,552)(162,509)(124,490)(125,535)(2,043)(40,062)(39,017)
Loans receivable, net11,454,179 11,290,869 9,388,320 9,415,553 163,310 2,065,859 2,038,626 
Other assets1,382,952 1,330,944 1,164,855 1,202,827 52,008 218,097 180,125 
Total assets$17,926,067 16,906,648 13,683,999 13,718,792 1,019,419 4,242,068 4,207,275 

Total debt securities of $4.319 billion at September 30, 2020 increased $582 million, or 16 percent, during the current quarter and increased $1.625 billion, or 60 percent, from the prior year third quarter. The Company continues to purchase debt securities with the excess liquidity produced from the increase in core deposits. Debt securities represented 24 percent of total assets at September 30, 2020 compared to 20 percent at December 31, 2019 and 20 percent of total assets at September 30, 2019.

The loan portfolio of $11.619 billion increased $165 million, or 1 percent, during the current quarter with the largest increase in commercial real estate which increased $154 million, or 3 percent. Excluding the PPP loans and the SBAZ acquisition, the loan portfolio increased $178 million, or 2 percent, since the prior year third quarter with the largest increase in commercial real estate loans which increased $318 million, or 6 percent.

5


Credit Quality Summary
At or for the Nine Months endedAt or for the Six Months endedAt or for the Year endedAt or for the Nine Months ended
(Dollars in thousands)Sep 30,
2020
Jun 30,
2020
Dec 31,
2019
Sep 30,
2019
Allowance for credit losses
Balance at beginning of period$124,490 124,490 131,239 131,239 
Impact of adopting CECL3,720 3,720 — — 
Acquisitions49 49 — — 
Credit loss expense39,165 36,296 57 57 
Charge-offs(7,865)(5,235)(15,178)(12,090)
Recoveries4,993 3,189 8,372 6,329 
Balance at end of period$164,552 162,509 124,490 125,535 
Other real estate owned$5,361 4,743 5,142 7,148 
Accruing loans 90 days or more past due2,952 6,071 1,412 7,912 
Non-accrual loans36,350 35,157 30,883 40,017 
Total non-performing assets$44,663 45,971 37,437 55,077 
Non-performing assets as a percentage of subsidiary assets
0.25 %0.27 %0.27 %0.40 %
Allowance for credit losses as a percentage of non-performing loans
419 %394 %385 %262 %
Allowance for credit losses as a percentage of total loans
1.42 %1.42 %1.31 %1.32 %
Net charge-offs as a percentage of total loans0.03 %0.02 %0.07 %0.06 %
Accruing loans 30-89 days past due$17,631 25,225 23,192 29,954 
Accruing troubled debt restructurings$39,999 41,759 34,055 32,949 
Non-accrual troubled debt restructurings$7,579 8,204 3,346 6,723 
U.S. government guarantees included in non-performing assets$4,411 3,305 1,786 3,000 

Non-performing assets of $44.7 million at September 30, 2020 decreased $1.3 million, or 3 percent, over the prior quarter and decreased $10.4 million, or 19 percent, over the prior year third quarter. Non-performing assets as a percentage of subsidiary assets at September 30, 2020 was 0.25 percent. Excluding the government guaranteed PPP loans, the non-performing assets as a percentage of subsidiary assets at September 30, 2020 was 0.27 percent, a decrease of 3 basis points from the prior quarter, and a decrease of 13 basis points from the prior year third quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $17.6 million at September 30, 2020 decreased $7.6 million from the prior quarter and decreased $12.3 million from the prior year third quarter. Early stage delinquencies as a percentage of loans at September 30, 2020 was 0.15 percent, which was a decrease of 7 basis points from prior quarter and a 16 basis points decrease from prior year third quarter. Excluding PPP loans, early stage delinquencies as a percentage of loans at September 30, 2020 was 0.17 percent, which was a decrease of 8 basis points from prior quarter and a 14 basis points decrease from prior year third quarter.

The current quarter credit loss expense was $2.9 million, a decrease of $10.7 million from the prior quarter credit loss expense of $13.6 million. The current year-to-date credit loss expense was $39.2 million and primarily attributable to credit loss expense related to COVID-19 and an additional $4.8 million of credit loss expense related to the SBAZ acquisition. The allowance for credit losses (“ACL”) as a percentage of total loans outstanding at September 30, 2020 was 1.42 percent which remained unchanged compared to the prior quarter. Excluding the PPP loans, the ACL as percentage of loans was 1.62 percent which also remained unchanged compared to the prior quarter.

6


Credit Quality Trends and Credit Loss Expense
(Dollars in thousands)Credit Loss ExpenseNet
Charge-Offs
ACL
as a Percent
of Loans
Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
Non-Performing
Assets to
Total Subsidiary
Assets
Third quarter 2020$2,869 $826 1.42 %0.15 %0.25 %
Second quarter 202013,552 1,233 1.42 %0.22 %0.27 %
First quarter 202022,744 813 1.49 %0.41 %0.26 %
Fourth quarter 2019— 1,045 1.31 %0.24 %0.27 %
Third quarter 2019— 3,519 1.32 %0.31 %0.40 %
Second quarter 2019— 732 1.46 %0.43 %0.41 %
First quarter 201957 1,510 1.56 %0.44 %0.42 %
Fourth quarter 20181,246 2,542 1.58 %0.41 %0.47 %

Net charge-offs for the current quarter were $826 thousand compared to $1.2 million for the prior quarter and $3.5 million from the same quarter last year. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the credit loss expense. 

PPP Loans

September 30, 2020
(Dollars in thousands)Number of
PPP Loans
Amount of
PPP Loans
Total Loans
Receivable, Net of PPP Loans
PPP Loans (Amount) as a Percent of Total Loans
Receivable, Net of PPP Loans
Residential real estate— $— 862,614 — %
Commercial real estate and other commercial
Real estate rental and leasing1,221 64,647 3,361,074 1.92 %
Accommodation and food services1,502 160,295 644,627 24.87 %
Healthcare1,928 288,612 826,809 34.91 %
Manufacturing830 80,483 193,216 41.65 %
Retail and wholesale trade1,672 168,837 471,115 35.84 %
Construction2,297 214,652 774,069 27.73 %
Other6,640 470,891 2,075,812 22.68 %
Home equity and other consumer— — 960,978 — %
Total16,090 $1,448,417 10,170,314 14.24 %

The PPP loan originations generated $55.2 million of SBA processing fees, or an average of 3.75 percent, and $8.9 million of deferred compensation costs for total net deferred fees of $46.3 million. Net deferred fees remaining on the PPP loans at September 30, 2020 were $36.1 million, which will be recognized into interest income over the life of the loans, generally two years, or when the loans are forgiven in whole or part by the SBA. The Company has actively been working with its customers to submit applications to the SBA for forgiveness of the loans and the Company started receiving forgiveness payments in the fourth quarter of 2020.

7


COVID-19 Bank Loan Modifications

September 30, 2020June 30, 2020
(Dollars in thousands)Total Loans Receivable, Net of PPP LoansAmount of Unexpired Original Loan ModificationsAmount of
Re-deferral Loan Modifications
Amount of
Remaining Loan
Modifications
Loan Modifications (Amount) as a Percent of Total Loans
Receivable, Net of PPP Loans
Amount of
Remaining Loan
Modifications
Loan Modifications (Amount) as a Percent of Total Loans
Receivable, Net of PPP Loans
Residential real estate$862,614 28,571 — 28,571 3.31 %$66,395 7.35 %
Commercial real estate
and other commercial
Real estate rental
and leasing
3,361,074 163,103 43,735 206,838 6.15 %587,609 18.11 %
Accommodation and
food services
644,627 69,328 12,854 82,182 12.75 %395,882 61.41 %
Healthcare826,809 29,136 14,117 43,253 5.23 %126,808 16.01 %
Manufacturing193,216 15,263 3,296 18,559 9.61 %49,338 24.41 %
Retail and wholesale
trade
471,115 13,299 2,554 15,853 3.36 %46,623 9.78 %
Construction774,069 13,337 1,188 14,525 1.88 %38,751 5.06 %
Other2,075,812 23,146 27,442 50,588 2.44 %192,060 9.40 %
Home equity and other
consumer
960,978 5,767 — 5,767 0.60 %11,326 1.19 %
Total$10,170,314 360,950 105,186 466,136 4.58 %$1,514,792 15.11 %

In response to COVID-19, the Company modified 3,054 loans in the amount of $1.515 billion during the second quarter of 2020. These modifications were primarily short-term payment deferrals under six months. During the third quarter of 2020, the majority of the modified loan deferral periods expired, and the loans returned to regular payment status. During the current quarter, the re-deferral rate was 9.12 percent for modified loans whose original deferral period had expired, with no industry category exceeding 20 percent. As of September 30, 2020, $466 million of the modifications, or 4.58 percent of the $10.170 billion of loans, net of the PPP loans, remain in the deferral period, a reduction of $1.049 billion from the $1.515 billion of loan modifications at the end of the prior quarter.

In addition to the Bank loan modifications presented above, the state of Montana created the Montana Loan Deferment Program for only Montana-based businesses and was implemented only in the third quarter. Cares Act Funds were used to provide interest payments upfront and directly to lenders on behalf of participating borrowers to convert existing commercial loans to interest only status, resulting in the deferral of principal and interest for a period of six to twelve months. None of the interest payments are required to be repaid by the borrowers, thus providing a grant to the borrowers. This program was unique to Montana, had minimal qualification requirements, and required that participating lenders modify eligible loans to conform to the program in order for borrowers to qualify for the grant. As of September 30, 2020, the Company had $237 million in eligible loans benefiting from this grant program, which was 2.33 percent of total loans receivable, net of PPP loans. Given the unique nature of the Montana only grant program, the $237 million was not included in the Bank loan modifications presented above.

8



COVID-19 Higher Risk Industries - Enhanced Monitoring


September 30, 2020June 30, 2020
(Dollars in thousands)Enhanced Monitoring Loans Receivable, Net of PPP LoansPercent of Total Loans Receivable, Net of PPP LoansAmount of Unexpired Original
Loan Modifications
Amount of
Re-deferral Loan Modifications
Amount of
Remaining Loan
Modifications
Loan Modifications (Amount) as a Percent of Enhanced Monitoring Loans
Receivable, Net of PPP Loans
Amount of
Remaining Loan
Modifications
Percent of Loans Receivable, Net of PPP LoansLoan Modifications (Amount) as a Percent of Enhanced Monitoring Loans
Receivable, Net of PPP Loans
Hotel and motel$422,500 4.15 %44,091 6,679 50,770 12.02 %$300,747 4.20 %71.34 %
Restaurant138,944 1.37 %12,977 6,175 19,152 13.78 %76,632 1.50 %50.91 %
Travel and tourism19,726 0.19 %4,605 397 5,002 25.36 %7,845 0.21 %37.79 %
Gaming14,500 0.14 %1,101 — 1,101 7.59 %9,214 0.15 %60.95 %
Oil and gas22,178 0.22 %1,474 — 1,474 6.65 %6,013 0.23 %26.43 %
Total$617,848 6.08 %64,248 13,251 77,499 12.54 %$400,451 6.29 %63.49 %

Excluding the PPP loans, the Company has $618 million, or 6 percent, of its total loan portfolio with direct exposure to industries for which it has identified as higher risk, requiring enhanced monitoring. As of September 30, 2020, $77.5 million have modifications, which was a reduction of $323 million, or 81 percent, from the $400 million of modifications at the end of the prior quarter. During the current quarter the re-deferral rate was 3.94 percent for modified loans whose original deferral period had expired, with no industry category exceeding 15 percent. The Company continues to conduct enhanced portfolio reviews and monitoring for potential credit deterioration.

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

9


Liability Summary
$ Change from
(Dollars in thousands)Sep 30,
2020
Jun 30,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2020
Dec 31,
2019
Sep 30,
2019
Deposits
Non-interest bearing deposits$5,479,311 5,043,704 3,696,627 3,772,766 435,607 1,782,684 1,706,545 
NOW and DDA accounts3,300,152 3,113,863 2,645,404 2,592,483 186,289 654,748 707,669 
Savings accounts1,864,143 1,756,503 1,485,487 1,472,465 107,640 378,656 391,678 
Money market deposit accounts
2,557,294 2,403,641 1,937,141 1,940,517 153,653 620,153 616,777 
Certificate accounts979,857 995,536 958,501 955,765 (15,679)21,356 24,092 
Core deposits, total14,180,757 13,313,247 10,723,160 10,733,996 867,510 3,457,597 3,446,761 
Wholesale deposits119,131 68,285 53,297 134,629 50,846 65,834 (15,498)
Deposits, total14,299,888 13,381,532 10,776,457 10,868,625 918,356 3,523,431 3,431,263 
Repurchase agreements965,668 881,227 569,824 558,752 84,441 395,844 406,916 
Federal Home Loan Bank advances
7,318 37,963 38,611 8,707 (30,645)(31,293)(1,389)
Other borrowed funds32,967 32,546 28,820 14,808 421 4,147 18,159 
Subordinated debentures139,918 139,917 139,914 139,913 
Other liabilities225,219 229,748 169,640 174,586 (4,529)55,579 50,633 
Total liabilities$15,670,978 14,702,933 11,723,266 11,765,391 968,045 3,947,712 3,905,587 

Core deposits of $14.181 billion as of September 30, 2020 increased $868 million, or 7 percent, from the prior quarter. Excluding the SBAZ acquisition, core deposits increased $2.843 billion, or 26 percent, from the prior year third quarter, with non-interest bearing deposits increasing $1.565 billion, or 41 percent. The current year significant increase in deposits was attributable to a number of factors including the PPP loan proceeds deposited by customers and the increase in customer savings rate. Non-interest bearing deposits were 39 percent of total core deposits at September 30, 2020 compared to 35 percent of total core deposits at September 30, 2019.

Federal Home Loan Bank (“FHLB”) advances of $7.3 million at September 30, 2020 decreased $31 million from the prior quarter and decreased $1.4 million from the prior year third quarter. The low level of FHLB advances was the result of the significant increase in core deposits which funded loans and debt security growth. FHLB advances will continue to fluctuate as necessary for balance sheet growth and to supplement liquidity needs of the Company.

Stockholders’ Equity Summary
$ Change from
(Dollars in thousands, except per share data)
Sep 30,
2020
Jun 30,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2020
Dec 31,
2019
Sep 30,
2019
Common equity$2,123,991 2,073,806 1,920,507 1,905,306 50,185 203,484 218,685 
Accumulated other comprehensive income
131,098 129,909 40,226 48,095 1,189 90,872 83,003 
Total stockholders’ equity
2,255,089 2,203,715 1,960,733 1,953,401 51,374 294,356 301,688 
Goodwill and core deposit intangible, net
(572,134)(574,088)(519,704)(522,274)1,954 (52,430)(49,860)
Tangible stockholders’ equity
$1,682,955 1,629,627 1,441,029 1,431,127 53,328 241,926 251,828 
Stockholders’ equity to total assets
12.58 %13.03 %14.33 %14.24 %
Tangible stockholders’ equity to total tangible assets
9.70 %9.98 %10.95 %10.84 %
Book value per common share
$23.63 23.10 21.25 21.19 0.53 2.38 2.44 
Tangible book value per common share
$17.64 17.08 15.61 15.53 0.56 2.03 2.11 
10



Tangible stockholders’ equity of $1.683 billion at September 30, 2020 increased $53 million, or 3 percent, from the prior quarter and was primarily the result of earnings retention. Tangible stockholders’ equity increased $252 million over the prior year third quarter, which was the result of $112 million of Company stock issued for the acquisitions of SBAZ and an increase in other comprehensive income and earnings retention. These increases more than offset the increase in goodwill and core deposit intangible associated with the acquisition. The current year decrease in both the stockholder’s equity to total assets ratio and the tangible stockholders’ equity to total tangible assets ratio was primarily the result of adding $1.448 billion of PPP loans. Tangible book value per common share of $17.64 at the current quarter end increased $0.56 per share from the prior quarter and increased $2.11 per share from a year ago.

Cash Dividends
On September 30, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.30 per share. The dividend was payable October 22, 2020 to shareholders of record on October 13, 2020. The dividend was the 142nd consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

S&P MidMidCap 400® Index
During the second quarter of 2020, S&P Dow Jones Indices selected the Company to transition from the S&P SmallCap 600® to the S&P MidCap 400®. S&P MidCap 400® index consists of 400 companies that are chosen with regard to market capitalization, liquidity and industry representations.

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

Income Summary
 Three Months ended $ Change from
(Dollars in thousands)Sep 30,
2020
Jun 30,
2020
Mar 31,
2020
Sep 30,
2019
Jun 30,
2020
Mar 31,
2020
Sep 30,
2019
Net interest income
Interest income$157,487 155,404 142,865 142,395 2,083 14,622 15,092 
Interest expense6,084 7,185 8,496 10,947 (1,101)(2,412)(4,863)
Total net interest income151,403 148,219 134,369 131,448 3,184 17,034 19,955 
Non-interest income
Service charges and other fees
13,404 11,366 14,020 15,138 2,038 (616)(1,734)
Miscellaneous loan fees and charges2,084 1,682 1,285 1,775 402 799 309 
Gain on sale of loans35,516 25,858 11,862 10,369 9,658 23,654 25,147 
Gain on sale of investments24 128 863 13,811 (104)(839)(13,787)
Other income2,639 2,190 5,242 1,956 449 (2,603)683 
Total non-interest income53,667 41,224 33,272 43,049 12,443 20,395 10,618 
Total income205,070 189,443 167,641 174,497 15,627 37,429 30,573 
Net interest margin (tax-equivalent)
3.92 %4.12 %4.36 %4.42 %

Net Interest Income
The current quarter net interest income of $151 million increased $3.2 million, or 2 percent, over the prior quarter and increased $20.0 million, or 15 percent, from the prior year third quarter. The current quarter interest income of $157 million increased $2.1 million, or 1 percent, compared to the prior quarter which was driven by an increase in income from commercial loans primarily from the PPP loans. The current quarter interest income
11


increased $15.1 million, or 11 percent, over prior year third quarter and was due to an increase in income from commercial loans and an increase in income on debt securities. Included in interest income was interest from the PPP loans of $9.3 million in the current quarter and $7.3 million in the prior quarter.

The current quarter interest expense of $6.1 million decreased $1.1 million, or 15 percent, over the prior quarter primarily as result of a decrease in deposit rates and borrowing interest rates. Current quarter interest expense decreased $4.9 million, or 44 percent, over prior year third quarter which was due to the decrease in higher cost borrowings and a decrease in deposit rates. During the current quarter, the total cost of funding (including non-interest bearing deposits) declined 5 basis points to 16 basis points compared to 21 basis points for the prior quarter primarily as a result of a decrease in rates on both deposits and borrowings. The total cost of funding decreased 23 basis points from the prior year third quarter and was attributable to a decrease in rates and a shift from higher cost borrowings to low cost deposits.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.92 percent compared to 4.12 percent in the prior quarter. The core net interest margin, excluding 2 basis points of discount accretion, 1 basis point of non-accrual interest, and 13 basis points of income from the PPP loans, was 4.02 percent compared to 4.21 in the prior quarter and 4.35 percent in the prior year third quarter. The Company experienced a 19 basis points decrease in the core net interest margin during the current quarter from decreased yields on loans and debt securities which were partially offset by the decrease in the cost of funding. The core net interest margin decreased 33 basis points from the prior year third quarter primarily from a decrease in earning asset yields, primarily loan yields, that outpaced the decrease in the total cost of funding. “The Bank divisions’ reduction in the cost of interest bearing deposits and repurchase agreements while increasing non-interest bearing deposits enabled the total cost of funding to decline by 5 basis points in the current quarter,” said Ron Copher, Chief Financial Officer.

Non-interest Income
Non-interest income for the current quarter totaled $53.7 million which was an increase of $12.4 million, or 30 percent, over the prior quarter and an increase of $10.6 million, or 25 percent, over the same quarter last year. Service charges and other fees of $13.4 million for the current quarter increased $2.0 million, or 18 percent, from the prior quarter. Service charges and other fees decreased $1.7 million from the prior year third quarter due to the decreased overdraft activity. Gain on the sale of loans of $35.5 million for the current quarter increased $9.7 million, or 37 percent, compared to the prior quarter and increased $25.1 million, or 242 percent, from the prior year third quarter due to the significant increase in refinance activity driven by the decrease in interest rates.

During the prior year third quarter, the Company terminated $260 million notional pay-fixed interest rate swaps and corresponding debt along with the sale of $308 million of available-for-sale debt securities. Sale of the investment securities resulted in a gain of $13.8 million in the prior year third quarter. Offsetting the gain was a $10 million loss recognized on the early termination of the interest swaps and a $3.5 million write-off of deferred prepayment penalties on FHLB borrowings.

12


Non-interest Expense Summary
 Three Months ended $ Change from
(Dollars in thousands)Sep 30,
2020
Jun 30,
2020
Mar 31,
2020
Sep 30,
2019
Jun 30,
2020
Mar 31,
2020
Sep 30,
2019
Compensation and employee benefits$64,866 57,981 59,660 62,509 6,885 5,206 2,357 
Occupancy and equipment9,369 9,357 9,219 8,731 12 150 638 
Advertising and promotions2,779 2,138 2,487 2,719 641 292 60 
Data processing5,597 5,042 5,282 4,466 555 315 1,131 
Other real estate owned186 75 112 166 111 74 20 
Regulatory assessments and insurance1,495 1,037 1,090 593 458 405 902 
Loss on termination of hedging activities— — — 13,528 — — (13,528)
Core deposit intangibles amortization2,612 2,613 2,533 2,360 (1)79 252 
Other expenses18,786 19,898 11,545 15,603 (1,112)7,241 3,183 
Total non-interest expense$105,690 98,141 91,928 110,675 7,549 13,762 (4,985)

Total non-interest expense of $106 million for the current quarter increased $7.5 million, or 8 percent, over the prior quarter and decreased $5.0 million, or 5 percent, over the prior year third quarter. Compensation and employee benefits increased by $6.9 million, or 12 percent, from the prior quarter which was primarily driven by the decrease in deferring compensation on originating the PPP loans which was $438 thousand in the current quarter compared to $8.4 million in the prior quarter. Compensation and employee benefits increased $2.4 million, or 4 percent, from the prior year third quarter primarily due to an increased number of employees driven by acquisitions and organic growth which more than offset the decrease from the $5.4 million of stock compensation expense in the prior year third quarter related to the Heritage Bancorp acquisition. Occupancy and equipment expense increased $638 thousand, or 7 percent, over the prior year third quarter primarily as a result of increased costs from acquisitions. Data processing expense increased $555 thousand, or 11 percent, over the prior quarter and increased $1.1 million, or 25 percent over the prior year third quarter as a result of the increased cost from acquisitions along with increased investment in technology infrastructure. Regulatory assessment and insurance increased $458 thousand from the prior quarter primarily due to an accrual adjustment in the prior quarter for waiver of the State of Montana regulatory semi-annual assessment for the first half of 2020. Regulatory assessment and insurance increased $902 thousand from the prior year third quarter quarter primarily due to $1.3 million in Small Bank Assessment credits applied in the prior year third quarter. The prior year loss on termination of hedging activities included $3.5 million write-off of the remaining unamortized deferred prepayment penalties on FHLB debt and a $10 million loss on the termination of pay-fixed interest rate swaps with notional amount of $260 million in the prior year third quarter.

Other expenses of $18.8 million, decreased $1.1 million, or 6 percent, from the prior quarter primarily due to a decrease in acquisition-related expenses. Other expenses increased $3.2 million, or 20 percent, over the prior year third quarter and was driven primarily from an increase in expense related to unfunded loan commitments. Current quarter other expenses included acquisition-related expenses of $793 thousand compared to $3.7 million in the prior quarter and $2.1 million in the prior year third quarter. Expense related to unfunded loan commitments was $2.3 million in the current quarter compared to $3.4 million in the prior quarter and no expense in the prior year third quarter. Also included in the current quarter other expenses was $1.9 million for third party consulting regarding improvements in technology, product and service offerings.

Federal and State Income Tax Expense
Tax expense during the third quarter of 2020 was $18.8 million, an increase of $4.5 million, or 31 percent, compared to the prior quarter and an increase of $6.5 million, or 54 percent, from the prior year third quarter.
13


The effective tax rate in the current quarter was 19 percent compared to 18 percent in the prior quarter and 19 percent prior year third quarter.

Efficiency Ratio
The efficiency ratio was 49.16 percent in the current quarter and 49.29 percent in the prior quarter. Excluding the impact from the PPP loans, the efficiency ratio would have been 51.67 percent in the current quarter, which was a 406 basis points decrease from the prior quarter efficiency ratio of 55.73 percent and was primarily due to the increase in gain on sale of loans. The prior year third quarter efficiency was 65.95 and excluding the impact from the termination of the cash flow hedges and the accelerated stock compensation expense, the efficiency ratio would have been 54.41 percent. Excluding these adjustments, the current quarter efficiency ratio decreased 274 basis points from the prior year third quarter efficiency ratio which was also driven by the increased gain on sale of loans.

Operating Results for Nine Months Ended September 30, 2020
Compared to September 30, 2019

Income Summary
Nine Months ended
(Dollars in thousands)Sep 30,
2020
Sep 30,
2019
$ Change% Change
Net interest income
Interest income$455,756 $400,896 $54,860 14 %
Interest expense21,765 33,940 (12,175)(36)%
Total net interest income433,991 366,956 67,035 18 %
Non-interest income
Service charges and other fees38,790 53,178 (14,388)(27)%
Miscellaneous loan fees and charges5,051 3,934 1,117 28 %
Gain on sale of loans73,236 23,929 49,307 206 %
Gain on sale of investments1,015 14,158 (13,143)(93)%
Other income10,071 7,158 2,913 41 %
Total non-interest income128,163 102,357 25,806 25 %
$562,154 $469,313 $92,841 20 %
Net interest margin (tax-equivalent)4.12 %4.36 %

Net Interest Income
Net-interest income of $434 million for the first nine months of 2020 increased $67.0 million, or 18 percent, over the first nine months of 2019. Interest income of $456 million for the first nine months of 2020 increased $54.9 million, or 14 percent, from the first nine months of 2019 and was primarily attributable to a $45.7 million increase in income from commercial loans, including $16.6 million from the PPP loans. Interest expense of $21.8 million for the first nine months of 2020 decreased $12.2 million, or 36 percent over the prior year same period primarily as a result of decreased higher cost FHLB advances and the decrease in the cost of deposits and borrowings. The total funding cost (including non-interest bearing deposits) for the first nine months of 2020 was 22 basis points, which decreased 20 basis points, or 48 percent, compared to 42 basis points for the first nine months of 2019.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first nine months of 2020 was 4.12 percent, a 24 basis points decrease from the net interest margin of 4.36 percent for the first nine
14


months of 2019. The core net interest margin, excluding 3 basis points of discount accretion, 1 basis point of non-accrual interest, and 9 basis points of income from the PPP loans was 4.17 compared to a core margin of 4.29 percent in the prior year first nine months. Although the Company was successful in reducing the cost of funding, it was not enough to outpace the decrease in yields on loans and debt securities driven by the current interest rate environment.

Non-interest Income
Non-interest income of $128 million for the first nine months of 2020 increased $25.8 million, or 25 percent, over the same period last year. Service charges and other fees of $38.8 million for 2020 year-to-date decreased $14.4 million, or 27 percent, from the same period prior year as a result of a decrease in overdraft activity and the impact of the Durbin Amendment. As of July 1, 2019, the Company became subject to the Durbin Amendment which established limits on the amount of interchange fees that can be charged to merchants for debit card processing. Gain on the sale of loans of $73.2 million for the first nine months of 2020, increased $49.3 million, or 206 percent, compared to the prior year as a result significant increase in refinance activity driven by the decrease in interest rates. Other income increased $2.9 million from the prior year and was primarily the result of a gain of $2.4 million on the sale of a former branch building in the first quarter of 2020.

Non-interest Expense Summary
Nine Months ended
(Dollars in thousands)Sep 30,
2020
Sep 30,
2019
$ Change% Change
Compensation and employee benefits$182,507 $167,210 $15,297 %
Occupancy and equipment27,945 25,348 2,597 10 %
Advertising and promotions7,404 7,874 (470)(6)%
Data processing15,921 12,420 3,501 28 %
Other real estate owned373 496 (123)(25)%
Regulatory assessments and insurance3,622 3,726 (104)(3)%
Loss on termination of hedging activities— 13,528 (13,528)(100)%
Core deposit intangibles amortization7,758 5,919 1,839 31 %
Other expenses50,229 43,154 7,075 16 %
Total non-interest expense$295,759 $279,675 $16,084 %

Total non-interest expense of $296 million for the first nine months of 2020 increased $16.1 million, or 6 percent, over the prior year same period. Compensation and employee benefits for the first nine months of 2020 increased $15.3 million, or 9 percent, from the same period last year due to the increased number of employees from acquisitions and organic growth and annual salary increases which more than offset the $8.9 million deferral of compensation cost from the PPP loans in the current year and the $5.4 million of stock compensation expense in the prior year from the Heritage Bancorp acquisition. Occupancy and equipment expense for the first nine months of 2020 increased $2.6 million, or 10 percent from the prior year primarily from increased cost from acquisitions. Data processing expense for the first nine months of 2020 increased $3.5 million, or 28 percent, from the prior year as a result of the increased costs from acquisitions along with increased investment in technology infrastructure. Other expenses of $50.2 million, increased $7.1 million, or 16 percent, from the prior year and was primarily driven by an increase in expense related to unfunded loan commitments and an increase in acquisition-related expenses. Acquisition-related expenses were $7.3 million in the current year first nine months compared to $4.1 million in the prior year first nine months. In the current year-to-date period, there was $2.1 million of expense related to unfunded loan commitments which was primarily attributable to the economic forecast related to COVID-19.


15


Credit Loss Expense
The credit loss expense was $39.2 million for the first nine months of 2020, an increase of $39.1 million from the same period in the prior year, this increase was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the first nine months of 2020 were $2.9 million compared to $5.8 million during the same period in 2019.

Federal and State Income Tax Expense
Tax expense of $42.7 million in the first nine months of 2020 increased $6.2 million, or 17 percent, over the prior year same period. The effective tax rate year-to-date in 2020 and 2019 was 19 percent.

Efficiency Ratio
The efficiency ratio was 50.21 percent for the first nine months of 2020. Excluding the impact from the PPP loans, the efficiency ratio would have been 53.30 percent. The prior year first nine months efficiency ratio was 58.82 and excluding the impact from the termination of the cash flow hedges and the accelerated stock compensation expense, the efficiency ratio would have been 54.74 percent. Excluding these adjustments, the current year efficiency ratio decreased 144 basis points from the prior year efficiency ratio which was driven by the increased gain on sale of loans and increase in net interest income that more than offset the decrease in service fee income from the Durbin Amendment and increases in compensation expense.

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

the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio;
changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability;
changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties;
legislative or regulatory changes, such as the recently adopted CARES Act addressing the economic effects of the COVID-19 pandemic, as well as increased banking and consumer protection regulation that adversely affect the Company’s business, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
ability to complete pending or prospective future acquisitions;
costs or difficulties related to the completion and integration of acquisitions;
the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
reduced demand for banking products and services;
the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
16


competition among financial institutions in the Company's markets may increase significantly;
the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
natural disasters, including fires, floods, earthquakes, and other unexpected events;
the Company’s success in managing risks involved in the foregoing; and
the effects of any reputational damage to the Company resulting from any of the foregoing.

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

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, October 23, 2020. The conference call will be accessible by telephone and webcast. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 1497135. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/or6wd4fi. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 1497135 by November 6, 2020.


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



17


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)Sep 30,
2020
Jun 30,
2020
Dec 31,
2019
Sep 30,
2019
Assets
Cash on hand and in banks$249,245 212,681 198,639 233,623 
Federal funds sold590 — — — 
Interest bearing cash deposits520,044 334,929 132,322 172,761 
Cash and cash equivalents769,879 547,610 330,961 406,384 
Debt securities, available-for-sale4,125,548 3,533,950 2,575,252 2,459,036 
Debt securities, held-to-maturity193,509 203,275 224,611 234,992 
Total debt securities4,319,057 3,737,225 2,799,863 2,694,028 
Loans held for sale, at fair value147,937 115,345 69,194 100,441 
Loans receivable11,618,731 11,453,378 9,512,810 9,541,088 
Allowance for credit losses(164,552)(162,509)(124,490)(125,535)
Loans receivable, net11,454,179 11,290,869 9,388,320 9,415,553 
Premises and equipment, net326,925 326,005 310,309 307,590 
Other real estate owned5,361 4,743 5,142 7,148 
Accrued interest receivable91,393 77,363 56,047 63,294 
Deferred tax asset— — 2,037 — 
Core deposit intangible, net58,121 60,733 63,286 65,852 
Goodwill514,013 513,355 456,418 456,422 
Non-marketable equity securities10,366 11,592 11,623 10,427 
Bank-owned life insurance123,095 122,388 109,428 108,814 
Other assets105,741 99,420 81,371 82,839 
Total assets$17,926,067 16,906,648 13,683,999 13,718,792 
Liabilities
Non-interest bearing deposits$5,479,311 5,043,704 3,696,627 3,772,766 
Interest bearing deposits8,820,577 8,337,828 7,079,830 7,095,859 
Securities sold under agreements to repurchase965,668 881,227 569,824 558,752 
FHLB advances7,318 37,963 38,611 8,707 
Other borrowed funds32,967 32,546 28,820 14,808 
Subordinated debentures139,918 139,917 139,914 139,913 
Accrued interest payable3,951 4,211 4,686 4,435 
Deferred tax liability17,227 25,213 — 
Other liabilities204,041 200,324 164,954 170,151 
Total liabilities15,670,978 14,702,933 11,723,266 11,765,391 
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
954 954 923 922 
Paid-in capital1,493,928 1,492,817 1,378,534 1,375,785 
Retained earnings - substantially restricted629,109 580,035 541,050 528,599 
Accumulated other comprehensive income131,098 129,909 40,226 48,095 
Total stockholders’ equity2,255,089 2,203,715 1,960,733 1,953,401 
Total liabilities and stockholders’ equity$17,926,067 16,906,648 13,683,999 13,718,792 

18


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

 Three Months endedNine Months ended
(Dollars in thousands, except per share data)Sep 30,
2020
Jun 30,
2020
Mar 31,
2020
Sep 30,
2019
Sep 30,
2020
Sep 30,
2019
Interest Income
Debt securities$25,381 25,833 21,014 21,357 72,228 64,600 
Residential real estate loans11,592 12,098 11,526 12,156 35,216 34,345 
Commercial loans109,514 106,343 98,684 97,224 314,541 268,806 
Consumer and other loans11,000 11,130 11,641 11,658 33,771 33,145 
Total interest income157,487 155,404 142,865 142,395 455,756 400,896 
Interest Expense
Deposits3,952 4,587 5,581 6,214 14,120 17,179 
Securities sold under agreements to
  repurchase
886 908 989 999 2,783 2,687 
Federal Home Loan Bank advances70 268 346 2,035 684 8,937 
Other borrowed funds
173 172 128 47 473 123 
Subordinated debentures1,003 1,250 1,452 1,652 3,705 5,014 
Total interest expense6,084 7,185 8,496 10,947 21,765 33,940 
Net Interest Income151,403 148,219 134,369 131,448 433,991 366,956 
Credit loss expense2,869 13,552 22,744 — 39,165 57 
Net interest income after credit loss expense
148,534 134,667 111,625 131,448 394,826 366,899 
Non-Interest Income
Service charges and other fees13,404 11,366 14,020 15,138 38,790 53,178 
Miscellaneous loan fees and charges2,084 1,682 1,285 1,775 5,051 3,934 
Gain on sale of loans35,516 25,858 11,862 10,369 73,236 23,929 
Gain on sale of debt securities24 128 863