Financial Data and Key Metrics Changes - Total deposits and retail purchase agreements reached $21.3 billion, increasing by $25.5 million or 12 basis points during the current quarter [37] - Interest income for the current quarter was $247 million, an increase of $15.5 million or 7% from the prior quarter [38] - Net income for the current quarter was $55 million, a decrease of $6.2 million or 10% from the prior quarter [38] - Total non-interest expense was $131 million, a decrease of $4.4 million or 3% from the prior quarter [39] - Non-interest income totaled $29.1 million, an increase of $1.2 million or 4% over the prior quarter [39] - The loan portfolio increased to $15.9 billion, up $436 million or 11% annualized during the current quarter [40] - Stockholder equity increased by $83.2 million or 3% during the first six months of the current year [41] - Tangible book value per common share was $17.16, an increase of 2 basis points from the prior quarter [42] Business Line Data and Key Metrics Changes - Loan yield for the current quarter was 5.12%, an increase of 10 basis points from the prior quarter [40] - New loan production yields for the quarter were 7.37%, up 41 basis points from the last quarter [40] - The company maintained a concentration of greater than 30% in non-interest bearing total deposits [28] Market Data and Key Metrics Changes - The company reported a strong liquidity position with over $15 billion available, including cash borrowing capacity from various sources [42] - The Federal Reserve's rate increases have influenced deposit behavior, with a through-the-cycle beta for core deposits at 10% [45] Company Strategy and Development Direction - The company remains optimistic about its long-term position despite industry headwinds, leveraging its banking model and M&A expertise [35] - Focus on maintaining and growing deposits through attractive rate options and technology-driven marketing strategies [43] - The company aims to continue strong loan growth, particularly in residential and construction loans [47] Management's Comments on Operating Environment and Future Outlook - Management expects net interest margin (NIM) pressure to moderate, with higher loan yields contributing to interest income growth [46] - The company anticipates a slight increase in total assets by year-end due to loan growth and deposit expectations [21] - Management expressed confidence in the dynamic Western markets served and the effectiveness of their business model [49] Other Important Information - The company declared a $0.33 per share dividend, marking the 153rd consecutive quarterly dividend [42] - The company has reduced full-time employees (FTE) by 70 year-over-year, reflecting a focus on efficiency [60] Q&A Session Summary Question: What are the expectations for deposit betas? - Management indicated that the through-the-cycle beta for total deposits is now estimated at 25% due to changes in the Fed's rate outlook [64] Question: What is the outlook for net interest income (NII)? - Management stated that NII stabilization is expected once the Fed's rate hikes conclude, with a potential lag of a quarter or two [122] Question: How is the company managing expenses? - Management confirmed that there were no one-time expenses in the current quarter's operating costs, and they are focused on mindful hiring [60] Question: What is the status of the construction loan portfolio? - Management noted that the majority of loan growth was due to construction draws, with expectations for a deceleration in growth as projects complete [101] Question: How is the company addressing deposit growth? - Management highlighted the success in attracting new accounts and emphasized the importance of deposit relationships with loan customers [96]

Part I. Financial Information [Item 1 – Financial Statements](index=4&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements) Presents Glacier Bancorp, Inc.'s unaudited condensed consolidated financial statements for Q1 2023 and 2022, including detailed notes [Unaudited Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Presents the Company's financial position, detailing assets, liabilities, and equity at specific dates | Metric | March 31, 2023 (in billions) | December 31, 2022 (in billions) | Change (QoQ, in billions) | | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Total Assets | $27.802 | $26.635 | +$1.167 | | Cash and cash equivalents | $1.530 | $0.402 | +$1.128 | | Total debt securities | $8.863 | $9.022 | -$0.160 | | Loans receivable, net | $15.332 | $15.065 | +$0.267 | | Total Liabilities | $24.876 | $23.792 | +$1.083 | | Non-interest bearing deposits | $7.001 | $7.691 | -$0.690 | | Interest bearing deposits | $13.147 | $12.916 | +$0.231 | | FRB Bank Term Funding | $2.740 | — | +$2.740 | | Total Stockholders' Equity | $2.927 | $2.843 | +$0.084 | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Presents the Company's financial performance, detailing revenues, expenses, and net income over specific periods | Metric | Three Months Ended March 31, 2023 (in millions) | Three Months Ended March 31, 2022 (in millions) | Change (YoY, in millions) | | :---------------------------------- | :------------------------------------------------ | :------------------------------------------------ | :------------------------------------------------ | | Total interest income | $231.888 | $190.516 | +$41.372 | | Total interest expense | $45.696 | $4.961 | +$40.735 | | Net Interest Income | $186.192 | $185.555 | +$0.637 | | Provision for credit losses | $5.470 | $7.031 | -$1.561 | | Total non-interest income | $27.895 | $33.563 | -$5.668 | | Total non-interest expense | $134.982 | $130.308 | +$4.674 | | Net Income | $61.211 | $67.795 | -$6.584 | | Basic earnings per share | $0.55 | $0.61 | -$0.06 | | Diluted earnings per share | $0.55 | $0.61 | -$0.06 | | Dividends declared per share | $0.33 | $0.33 | No Change | [Unaudited Condensed Consolidated Statements of Comprehensive (Loss) Income](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income) Presents the Company's comprehensive income, including net income and other comprehensive income/loss components | Metric | Three Months Ended March 31, 2023 (in millions) | Three Months Ended March 31, 2022 (in millions) | Change (YoY, in millions) | | :------------------------------------------------ | :------------------------------------------------ | :------------------------------------------------ | :------------------------------------------------ | | Net Income | $61.211 | $67.795 | -$6.584 | | Unrealized gain (losses) on available-for-sale securities (net of tax) | $59.319 | -$277.386 | +$336.705 | | Total Comprehensive (Loss) Income | $119.775 | -$207.373 | +$327.148 | [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Details changes in stockholders' equity, including net income, other comprehensive income, and dividends | Metric | March 31, 2023 (in billions) | March 31, 2022 (in billions) | Change (YoY, in millions) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Balance at beginning of period (Jan 1) | $2.843 | $3.178 | -$334.317 | | Net income | $61.211 | $67.795 | -$6.584 | | Other comprehensive loss | $58.564 | -$275.168 | +$333.732 | | Cash dividends declared | -$36.686 | -$36.648 | -$0.038 | | Balance at end of period (Mar 31) | $2.927 | $2.934 | -$7.289 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Presents the Company's cash inflows and outflows from operating, investing, and financing activities | Metric | Three Months Ended March 31, 2023 (in millions) | Three Months Ended March 31, 2022 (in millions) | Change (YoY, in millions) | | :------------------------------------ | :------------------------------------------------ | :------------------------------------------------ | :------------------------------------------------ | | Net cash provided by operating activities | $98.179 | $78.358 | +$19.821 | | Net cash used in investing activities | -$29.866 | -$456.283 | +$426.417 | | Net cash provided by financing activities | $1.059 | $377.044 | +$682.182 | | Net (decrease) increase in cash, cash equivalents and restricted cash | $1.128 | -$0.881 | +$1.128 | | Cash, cash equivalents and restricted cash at end of period | $1.530 | $436.805 | +$1.093 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed disclosures for financial statements, covering accounting policies, financial instruments, and fair value measurements [Note 1. Nature of Operations and Summary of Significant Accounting Policies](index=11&type=section&id=Note%201.%20Nature%20of%20Operations%20and%20Summary%20of%20Significant%20Accounting%20Policies) Details the Company's operations and outlines significant accounting policies and critical estimates - **Glacier Bancorp, Inc.** provides banking services to individuals and businesses in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona and Nevada through its wholly-owned bank subsidiary, **Glacier Bank**[18](index=18&type=chunk) - The Company's sole operating segment is **Glacier Bank**, which consists of seventeen bank divisions and a corporate division[22](index=22&type=chunk) - Material estimates susceptible to significant change include the allowance for credit losses, valuation of debt securities, real estate acquired in foreclosures, and goodwill impairment[21](index=21&type=chunk) - The Company adopted **FASB ASU 2022-02** on **January 1, 2023**, eliminating the accounting guidance for Troubled Debt Restructurings (TDRs) and enhancing disclosure requirements for loan modifications to borrowers experiencing financial difficulty (MBFD)[58](index=58&type=chunk)[86](index=86&type=chunk) [Note 2. Debt Securities](index=22&type=section&id=Note%202.%20Debt%20Securities) Provides details on the Company's debt securities portfolio, including available-for-sale and held-to-maturity classifications | Metric | March 31, 2023 (in billions) | December 31, 2022 (in billions) | | :----------------------------- | :----------------------------- | :----------------------------- | | Total debt securities | $8.863 | $9.022 | | Debt securities, available-for-sale | $5.198 | $5.307 | | Debt securities, held-to-maturity | $3.664 | $3.715 | | Gross unrealized losses (AFS) | $547.328 | $623.881 | | Gross unrealized losses (HTM) | $374.108 | $441.305 | - The decline in fair value of available-for-sale debt securities was determined to be unrelated to credit losses and primarily resulted from changes in interest rates and market spreads, with recovery expected as payments are received and securities approach maturity[102](index=102&type=chunk)[214](index=214&type=chunk) - No **Allowance for Credit Losses (ACL)** was recorded on available-for-sale or held-to-maturity debt securities, as an insignificant amount of credit losses is expected[102](index=102&type=chunk)[106](index=106&type=chunk)[214](index=214&type=chunk) [Note 3. Loans Receivable, Net](index=27&type=section&id=Note%203.%20Loans%20Receivable,%20Net) Details the Company's loan portfolio, including categories, allowance for credit losses, and net charge-offs | Metric | March 31, 2023 (in billions) | December 31, 2022 (in billions) | Change (QoQ, in millions) | | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Loans receivable | $15.519 | $15.247 | +$271.800 | | Allowance for credit losses | ($186.604) | ($182.283) | -$4.321 | | Loans receivable, net | $15.332 | $15.065 | +$267.479 | | Commercial real estate loans | $9.992 | $9.797 | +$194.972 | | Non-accrual loans with no ACL | $28.153 | $31.036 | -$2.883 | - The **Allowance for Credit Losses (ACL)** for loans increased primarily as a result of loan portfolio growth[111](index=111&type=chunk) | Loan Segment | Q1 2023 Net Charge-offs (in thousands) | | :------------------- | :------------------------------------- | | Residential real estate | ($2) | | Commercial real estate | $230 | | Other commercial | ($382) | | Home equity | ($39) | | Other consumer | $125 | | Total | $1,939 | - The sizeable charge-offs in the other consumer loan segment are driven by deposit overdraft charge-offs, consistent with historical trends[112](index=112&type=chunk) [Note 4. Leases](index=35&type=section&id=Note%204.%20Leases) Details the Company's lease assets and liabilities, including weighted-average lease terms and discount rates | Metric | March 31, 2023 (in millions) | December 31, 2022 (in millions) | | :----------------------------- | :----------------------------- | :----------------------------- | | Net ROU assets | $69.399 | $71.045 | | Lease liabilities | $73.070 | $74.783 | | Weighted-average remaining lease term (Operating) | **16 years** | **17 years** | | Weighted-average discount rate (Operating) | **3.6 %** | **3.6 %** | | Total lease expense (Q1 2023) | $3.401 | $2.020 (Q1 2022) | [Note 5. Goodwill](index=36&type=section&id=Note%205.%20Goodwill) Reports the net carrying value of goodwill and the results of the annual impairment test - The net carrying value of goodwill remained at **$985.393 million** at March 31, 2023, with no impairment identified during the annual test in Q3 2022[129](index=129&type=chunk) [Note 6. Loan Servicing](index=37&type=section&id=Note%206.%20Loan%20Servicing) Details the carrying value of mortgage servicing rights and principal balances of loans serviced for others | Metric | March 31, 2023 (in millions) | December 31, 2022 (in millions) | | :----------------------------- | :----------------------------- | :----------------------------- | | Carrying value of mortgage servicing rights | $13.276 | $13.488 | | Principal balances of loans serviced for others | $1.642 | $1.661 | | Fair value of servicing rights | $19.665 | $19.716 | [Note 7. Variable Interest Entities](index=37&type=section&id=Note%207.%20Variable%20Interest%20Entities) Details the Company's consolidated and unconsolidated variable interest entities and related commitments - The Company consolidates certain Certified Development Entities (CDEs) and tax credit funds (LIHTC partnerships) where it is deemed the primary beneficiary, with total consolidated assets of **$185.438 million** and liabilities of **$49.631 million** at March 31, 2023[133](index=133&type=chunk)[134](index=134&type=chunk)[137](index=137&type=chunk) - Unconsolidated LIHTC partnerships had carrying values of **$75.813 million** at March 31, 2023, with future unfunded contingent equity commitments totaling **$102.527 million**[138](index=138&type=chunk) [Note 8. Securities Sold Under Agreements to Repurchase](index=39&type=section&id=Note%208.%20Securities%20Sold%20Under%20Agreements%20to%20Repurchase) Details securities sold under repurchase agreements and their collateralization - Securities sold under agreements to repurchase totaled **$1.191 billion** at March 31, 2023, secured by debt securities with carrying values of **$1.445 billion**[140](index=140&type=chunk) [Note 9. Derivatives and Hedging Activities](index=39&type=section&id=Note%209.%20Derivatives%20and%20Hedging%20Activities) Details the Company's use of interest rate derivatives for hedging and residential real estate commitments - The Company uses interest rate caps as cash flow hedges for variable rate subordinated debentures, with a fair value of **$6.705 million** at March 31, 2023[142](index=142&type=chunk) - Residential real estate derivatives (interest rate locks) totaled **$42.228 million** in commitments, with a fair value of **$732 thousand** at March 31, 2023[144](index=144&type=chunk) [Note 10. Other Expenses](index=40&type=section&id=Note%2010.%20Other%20Expenses) Details the components of other non-interest expenses, including merger and acquisition-related costs | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change (YoY, in millions) | | :----------------------------- | :--------------------- | :--------------------- | :----------- | | Total other expenses | $22.132 | $23.844 | -$1.712 | | Mergers and acquisition expenses | $0.352 | $6.207 | -$5.855 | [Note 11. Accumulated Other Comprehensive (Loss) Income](index=41&type=section&id=Note%2011.%20Accumulated%20Other%20Comprehensive%20(Loss)%20Income) Details changes in accumulated other comprehensive income/loss, including current period adjustments | Metric | March 31, 2023 (in millions) | January 1, 2023 (in millions) | Change (QoQ, in millions) | | :-------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Balance at end of period | ($410.228) | ($468.792) | +$58.564 | | Net current period other comprehensive (loss) income | $58.564 | N/A | N/A | [Note 12. Earnings Per Share](index=41&type=section&id=Note%2012.%20Earnings%20Per%20Share) Provides basic and diluted earnings per share calculations, including net income and average outstanding shares | Metric | Q1 2023 | Q1 2022 | | :-------------------------- | :------ | :------ | | Basic earnings per share | **$0.55** | **$0.61** | | Diluted earnings per share | **$0.55** | **$0.61** | | Net income (in millions) | $61.211 | $67.795 | | Average outstanding shares - basic | **110,824,648** | **110,724,655** | | Average outstanding shares - diluted | **110,881,708** | **110,800,001** | [Note 13. Fair Value of Assets and Liabilities](index=42&type=section&id=Note%2013.%20Fair%20Value%20of%20Assets%20and%20Liabilities) Details assets and liabilities measured at fair value, categorizing them by fair value hierarchy levels - Available-for-sale debt securities, loans held for sale, interest rate caps, and interest rate locks are measured at fair value on a recurring basis, primarily classified as **Level 2**[152](index=152&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) - Collateral-dependent impaired loans and Other Real Estate Owned (OREO) are measured at fair value on a non-recurring basis, classified as **Level 3**[161](index=161&type=chunk)[162](index=162&type=chunk)[164](index=164&type=chunk) [Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Reviews Glacier Bancorp, Inc.'s financial condition and operating results for Q1 2023, analyzing key metrics, trends, and resources [Forward-Looking Statements](index=48&type=section&id=Forward-Looking%20Statements) Outlines forward-looking statements subject to significant business, economic, and competitive uncertainties - The report contains forward-looking statements subject to significant business, economic, and competitive uncertainties, including risks related to lending, monetary policies, regulatory changes, economic conditions, acquisitions, and cybersecurity[177](index=177&type=chunk) [Financial Highlights](index=49&type=section&id=Financial%20Highlights) Summarizes key financial performance metrics, including net income, EPS, and various ratios | Metric | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Change (QoQ) | Change (YoY) | | :----------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income (in millions) | $61.211 | $79.677 | $67.795 | -$18.466 | -$6.584 | | Basic earnings per share | **$0.55** | **$0.72** | **$0.61** | **-$0.17** | **-$0.06** | | Diluted earnings per share | **$0.55** | **$0.72** | **$0.61** | **-$0.17** | **-$0.06** | | Dividends declared per share | **$0.33** | **$0.33** | **$0.33** | No Change | No Change | | Return on average assets (annualized) | **0.93 %** | **1.19 %** | **1.06 %** | **-0.26 %** | **-0.13 %** | | Return on average equity (annualized) | **8.54 %** | **11.35 %** | **8.97 %** | **-2.81 %** | **-0.43 %** | | Efficiency ratio | **60.39 %** | **53.18 %** | **57.11 %** | **+7.21 %** | **+3.28 %** | | Loan to deposit ratio | **77.09 %** | **74.05 %** | **63.52 %** | **+3.04 %** | **+13.57 %** | - **Net income** decreased by **10%** YoY, primarily due to a significant increase in funding costs[180](index=180&type=chunk) [Financial Condition Analysis](index=50&type=section&id=Financial%20Condition%20Analysis) Analyzes the Company's balance sheet, detailing changes in assets, liabilities, and stockholders' equity, and discusses cash dividends [Assets](index=50&type=section&id=Assets) Analyzes changes in total assets, cash and cash equivalents, debt securities, and the loan portfolio - **Total assets** increased by **$1.167 billion** QoQ to **$27.802 billion** at March 31, 2023[9](index=9&type=chunk)[183](index=183&type=chunk) - **Cash and cash equivalents** increased by **$1.128 billion** QoQ to **$1.530 billion**, strengthening liquidity[9](index=9&type=chunk)[183](index=183&type=chunk) - **Total debt securities** decreased by **$160 million** QoQ to **$8.863 billion**, with cash flow used to primarily fund loan growth[9](index=9&type=chunk)[183](index=183&type=chunk) - The loan portfolio grew by **$272 million** QoQ (**7%** annualized) to **$15.519 billion**, primarily driven by commercial real estate[184](index=184&type=chunk) [Liabilities](index=51&type=section&id=Liabilities) Analyzes changes in total deposits, non-interest bearing deposits, and the utilization of borrowing programs - **Total deposits** decreased by **$458 million** QoQ to **$20.148 billion** at March 31, 2023[186](index=186&type=chunk) - **Non-interest bearing deposits** decreased by **$690 million** QoQ, representing **35%** of total core deposits[186](index=186&type=chunk) - The Company utilized the **FRB Bank Term Funding Program**, increasing borrowings by **$2.740 billion** QoQ, to pay off higher-rate FHLB advances and support its cash position[187](index=187&type=chunk) [Stockholders' Equity](index=52&type=section&id=Stockholders'%20Equity) Analyzes changes in total stockholders' equity, tangible stockholders' equity, and tangible book value per common share - **Total stockholders' equity** increased by **$83.6 million** QoQ to **$2.927 billion** at March 31, 2023[9](index=9&type=chunk)[189](index=189&type=chunk) - **Tangible stockholders' equity** increased by **$86.0 million** QoQ to **$1.902 billion**, primarily due to earnings retention and a decrease in net unrealized loss on AFS debt securities[189](index=189&type=chunk) - **Tangible book value per common share** increased by **$0.76** QoQ to **$17.16**[189](index=189&type=chunk) [Cash Dividend](index=52&type=section&id=Cash%20Dividend) Reports the declared quarterly cash dividend, consistent with prior periods - A quarterly cash dividend of **$0.33** per share was declared, consistent with prior periods[190](index=190&type=chunk) [Operating Results for Three Months Ended March 31, 2023 Compared to December 31, 2022, March 31, 2022](index=53&type=section&id=Operating%20Results%20for%20Three%20Months%20Ended%20March%2031,%202023%20Compared%20to%20December%2031,%202022,%20March%2031,%202022) Details operating performance, analyzing changes in income, expenses, and efficiency ratio for the current quarter versus prior periods [Income Summary](index=53&type=section&id=Income%20Summary) Summarizes net interest income, total non-interest income, total income, and net interest margin | Metric | Mar 31, 2023 (in millions) | Dec 31, 2022 (in millions) | Mar 31, 2022 (in millions) | Change (QoQ, in millions) | Change (YoY, in millions) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :----------- | :----------- | | Net interest income | $186.192 | $204.059 | $185.555 | -$17.867 | +$0.637 | | Total non-interest income | $27.895 | $28.483 | $33.563 | -$0.588 | -$5.668 | | Total income | $214.087 | $232.542 | $219.118 | -$18.455 | -$5.031 | | Net interest margin (tax-equivalent) | **3.08 %** | **3.30 %** | **3.20 %** | **-0.22 %** | **-0.12 %** | [Net Interest Income](index=53&type=section&id=Net%20Interest%20Income) Analyzes changes in net interest income, interest income, interest expense, core deposit cost, and net interest margin - **Net interest income** was **$186.192 million**, a slight increase of **$0.637 million** YoY, but a decrease of **$17.867 million** QoQ[10](index=10&type=chunk)[193](index=193&type=chunk) - **Interest income** increased by **$6.8 million** QoQ and **$41.4 million** YoY, driven by loan portfolio growth and higher loan yields (new loan production yields at **6.96%**)[194](index=194&type=chunk)[196](index=196&type=chunk) - **Interest expense** significantly increased by **$24.7 million** QoQ and **$40.7 million** YoY, primarily due to higher rates on deposits and increased use of borrowing programs[195](index=195&type=chunk) - Core deposit cost rose to **23 basis points** (Q1 2023) from **8 basis points** (Q4 2022) and **7 basis points** (Q1 2022)[195](index=195&type=chunk) - **Net interest margin** (tax-equivalent) decreased to **3.08%** from **3.30%** QoQ and **3.20%** YoY, mainly due to increased funding costs[193](index=193&type=chunk)[196](index=196&type=chunk) [Non-interest Income](index=54&type=section&id=Non-interest%20Income) Analyzes changes in total non-interest income, primarily due to gain on sale of residential loans - **Total non-interest income** decreased by **$5.7 million** YoY to **$27.895 million**, primarily due to a **73%** decrease in gain on sale of residential loans[197](index=197&type=chunk) [Non-interest Expense](index=54&type=section&id=Non-interest%20Expense) Analyzes changes in total non-interest expense, including compensation, regulatory assessments, and acquisition-related expenses - **Total non-interest expense** increased by **$6.0 million** QoQ and **$4.7 million** YoY to **$134.982 million**[198](index=198&type=chunk) - **Compensation and employee benefits** increased by **$2.4 million** YoY due to annual salary increases[199](index=199&type=chunk) - **Regulatory assessments and insurance** increased by **$1.8 million** YoY, mainly due to FDIC premium increases[199](index=199&type=chunk) - Other expenses decreased by **$1.7 million** YoY, primarily as a result of a decrease in acquisition-related expense[199](index=199&type=chunk) [Efficiency Ratio](index=54&type=section&id=Efficiency%20Ratio) Analyzes the efficiency ratio, driven by changes in interest and non-interest expenses - The **efficiency ratio** increased to **60.39%** in Q1 2023 from **53.18%** in Q4 2022 and **57.11%** in Q1 2022, driven by increased interest and non-interest expenses[200](index=200&type=chunk) [Provision for Credit Losses for Loans](index=55&type=section&id=Provision%20for%20Credit%20Losses%20for%20Loans) Analyzes the provision for credit losses on loans, net charge-offs, and ACL as a percentage of loans | Metric | Q1 2023 (in millions) | Q4 2022 (in millions) | Q1 2022 (in millions) | Change (QoQ, in thousands) | Change (YoY, in millions) | | :-------------------------- | :--------------------- | :--------------------- | :--------------------- | :----------- | :----------- | | Provision for credit losses on loans | $6.260 | $6.060 | $4.344 | +$200 | +$1.916 | | Net Charge Offs (Recoveries) | $1.939 | $1.968 | $0.850 | -$29 | +$1.089 | | ACL as a Percent of Loans | **1.20 %** | **1.20 %** | **1.28 %** | No Change | **-0.08 %** | | Non-Performing Assets to Total Subsidiary Assets | **0.12 %** | **0.12 %** | **0.24 %** | No Change | **-0.12 %** | - The increase in provision for credit loss expense for loans was primarily due to loan portfolio growth[202](index=202&type=chunk) [Additional Management's Discussion and Analysis](index=56&type=section&id=Additional%20Management's%20Discussion%20and%20Analysis) Provides in-depth analysis of financial performance, including investment, lending, asset quality, funding, liquidity, capital, and tax information [Investment Activity](index=56&type=section&id=Investment%20Activity) Details changes in total debt securities, their composition, and unrealized losses - **Total debt securities** decreased by **$160 million** QoQ and **$1.250 billion** YoY to **$8.863 billion** at March 31, 2023[183](index=183&type=chunk)[207](index=207&type=chunk) - Debt securities represented **32%** of total assets at March 31, 2023, down from **39%** a year prior[183](index=183&type=chunk) - The portfolio is primarily comprised of state and local government securities and mortgage-backed securities, with a weighted-average yield of **1.74%** at March 31, 2023[207](index=207&type=chunk)[214](index=214&type=chunk) - All available-for-sale and held-to-maturity debt securities with unrealized losses were determined to be investment grade and declines were due to interest rate changes, not credit losses[102](index=102&type=chunk)[106](index=106&type=chunk)[214](index=214&type=chunk) [Equity securities](index=59&type=section&id=Equity%20securities) Discusses non-marketable equity securities, primarily FHLB stock, and impairment evaluations - Non-marketable equity securities, primarily **FHLB stock**, are carried at cost and evaluated for impairment[216](index=216&type=chunk) - No impairment was identified for non-marketable or marketable equity securities without readily determinable fair values as of March 31, 2023[217](index=217&type=chunk) [Lending Activity](index=59&type=section&id=Lending%20Activity) Details the growth and composition of the loan portfolio, with commercial real estate as the largest segment - The loan portfolio increased by **$1.788 billion** YoY to **$15.519 billion** at March 31, 2023[184](index=184&type=chunk)[218](index=218&type=chunk) - Commercial real estate loans remain the largest segment, accounting for **65%** of the total loan portfolio[218](index=218&type=chunk) [Non-performing Assets](index=60&type=section&id=Non-performing%20Assets) Analyzes total non-performing assets, their percentage of subsidiary assets, and accruing loans past due | Metric | Mar 31, 2023 (in millions) | Dec 31, 2022 (in millions) | Mar 31, 2022 (in millions) | Change (QoQ, in millions) | Change (YoY, in millions) | | :------------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :----------- | :----------- | | Total non-performing assets | $31.979 | $32.742 | $62.476 | -$0.763 | -$30.497 | | Non-performing assets as a percentage of subsidiary assets | **0.12 %** | **0.12 %** | **0.24 %** | No Change | **-0.12 %** | | Accruing loans 30-89 days past due | $24.993 | $20.967 | $16.080 | +$4.026 | +$8.913 | - Most non-performing assets are secured by real estate, and the value of the underlying collateral is believed to be adequate to minimize significant charge-offs or losses[222](index=222&type=chunk) [Modifications to Borrowers Experiencing Financial Difficulty](index=60&type=section&id=Modifications%20to%20Borrowers%20Experiencing%20Financial%20Difficulty) Details loans modified for borrowers experiencing financial difficulty, including interest rate reductions and term extensions - Loans modified for borrowers experiencing financial difficulty (MBFD) totaled **$6.6 million** in amortized cost basis at March 31, 2023[114](index=114&type=chunk)[223](index=223&type=chunk) | Loan Segment | Weighted Average Interest Rate Reduction | Weighted Average Term Extension | Principal Forgiveness (in thousands) | | :------------------- | :------------------------------------- | :------------------------------ | :----------------------------------- | | Commercial real estate | **2.11%** | **10 months** | — | | Other commercial | **—%** | **6 months** | — | | Other consumer | **—%** | **8 months** | $10 | [Other Real Estate Owned and Foreclosed Assets](index=60&type=section&id=Other%20Real%20Estate%20Owned%20and%20Foreclosed%20Assets) Reports the low balance of Other Real Estate Owned (OREO) at period end - The balance of **Other Real Estate Owned (OREO)** remained low at **$31 thousand** at March 31, 2023[225](index=225&type=chunk) [Allowance for Credit Losses - Loans Receivable](index=61&type=section&id=Allowance%20for%20Credit%20Losses%20-%20Loans%20Receivable) Details the Allowance for Credit Losses (ACL) on loans and its adequacy to absorb estimated credit losses - The **Allowance for Credit Losses (ACL)** on loans was **$186.6 million** at March 31, 2023, representing **1.20%** of total loans outstanding, and is considered adequate to absorb estimated credit losses[226](index=226&type=chunk)[228](index=228&type=chunk) - The **ACL** methodology considers loan portfolio growth, composition, credit quality, economic forecasts, and other environmental factors[229](index=229&type=chunk) [Loans by Regulatory Classification](index=64&type=section&id=Loans%20by%20Regulatory%20Classification) Details total loans receivable by regulatory classification, including commercial real estate loans and net charge-offs - **Total loans receivable** by regulatory classification increased by **13%** YoY to **$15.519 billion** at March 31, 2023[236](index=236&type=chunk) - Commercial real estate loans (owner-occupied and non-owner occupied) totaled **$6.517 billion**, increasing **11%** YoY[236](index=236&type=chunk) - **Net charge-offs** for the year-to-date period ending March 31, 2023, were **$1.939 million**[241](index=241&type=chunk) [Sources of Funds](index=67&type=section&id=Sources%20of%20Funds) Outlines the Company's primary sources of funds, including customer deposits and various borrowing programs - The Company's primary source of funds is customer deposits, supplemented by loan repayments, debt securities, repurchase agreements, FHLB advances, and borrowings from the FRB[242](index=242&type=chunk) [Deposits](index=67&type=section&id=Deposits) Details total deposits, non-interest bearing deposits, and wholesale deposits | Metric | March 31, 2023 (in billions) | December 31, 2022 (in billions) | | :----------------------------- | :----------------------------- | :----------------------------- | | Total deposits | $20.148 | $20.607 | | Non-interest bearing deposits | $7.001 | $7.691 | | Wholesale deposits | $420.390 | $31.999 | - **Non-interest bearing deposits** constituted **35%** of total deposits at March 31, 2023[245](index=245&type=chunk) [Borrowings](index=68&type=section&id=Borrowings) Describes the Company's utilization of repurchase agreements, FHLB advances, and the FRB Bank Term Funding Program - The Company utilizes repurchase agreements, **Federal Home Loan Bank (FHLB)** advances, and the **Federal Reserve Bank (FRB) Bank Term Funding Program (BTFP)** for funding[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk) - Participation in the **BTFP** enabled the Company to pay off higher-rate FHLB advances and support its current cash position[248](index=248&type=chunk) [Subordinated Debentures](index=69&type=section&id=Subordinated%20Debentures) Details outstanding subordinated debentures and their inclusion in Tier 2 capital - Subordinated debentures outstanding were **$133 million** at March 31, 2023, and are included in **Tier 2 capital** for regulatory purposes[251](index=251&type=chunk) [Contractual Obligations and Off-Balance Sheet Arrangements](index=69&type=section&id=Contractual%20Obligations%20and%20Off-Balance%20Sheet%20Arrangements) Details the Allowance for Credit Losses (ACL) for off-balance sheet credit exposures - The Company maintains an **Allowance for Credit Losses (ACL)** of **$24.5 million** for off-balance sheet credit exposures, including unfunded loan commitments[252](index=252&type=chunk) [Liquidity Risk](index=70&type=section&id=Liquidity%20Risk) Discusses liquidity risk management, funding needs, and available liquidity sources - The Company manages liquidity risk by assessing current and future funding needs, maintaining an adequate cushion for unanticipated cash flow, and balancing the benefits and costs of liquidity[254](index=254&type=chunk) | Liquidity Source | March 31, 2023 (in billions) | December 31, 2022 (in billions) | | :----------------------------- | :----------------------------- | :----------------------------- | | FHLB advances (Amount available) | $3.603 | $2.556 | | FRB discount window (Amount available) | $1.642 | $1.680 | | FRB Bank Term Funding Program (Amount available) | $0.836 | $0 | | Unencumbered debt securities | $2.551 | $6.254 | - **Total unencumbered debt securities** decreased significantly due to increased pledges to the **FRB's Bank Term Funding Program**[255](index=255&type=chunk) [Capital Resources](index=71&type=section&id=Capital%20Resources) Details regulatory capital ratios and the election of a five-year transition period for CECL impact on capital | Regulatory Capital Ratio | Glacier Bank Actual (Mar 31, 2023) | Minimum Capital Requirements | Well Capitalized Requirements | | :-------------------------------- | :--------------------------------- | :--------------------------- | :---------------------------- | | Total Capital (To Risk-Weighted Assets) | **13.73 %** | **8.00 %** | **10.00 %** | | Tier 1 Capital (To Risk-Weighted Assets) | **12.69 %** | **6.00 %** | **8.00 %** | | Common Equity Tier 1 (To Risk-Weighted Assets) | **12.69 %** | **4.50 %** | **6.50 %** | | Leverage Ratio/Tier 1 Capital (To Average Assets) | **9.06 %** | **4.00 %** | **5.00 %** | - The Company has elected to utilize a five-year transition period for the **CECL** accounting standard's impact on regulatory capital[259](index=259&type=chunk) [Federal and State Income Taxes](index=71&type=section&id=Federal%20and%20State%20Income%20Taxes) Details the effective tax rate, reasons for deviation from statutory rates, and expected federal income tax credits - The effective tax rate was **16.9%** for the three months ended March 31, 2023, lower than the federal statutory rate of **21%** due to income from tax-exempt debt securities, municipal loans and leases, and federal income tax credits[262](index=262&type=chunk) - Expected federal income tax credits from New Markets Tax Credits, Low-Income Housing Tax Credits, and Debt Securities Tax Credits total **$224.885 million** for future years[264](index=264&type=chunk) [Average Balance Sheet](index=73&type=section&id=Average%20Balance%20Sheet) Presents average balances for loans, earning assets, core deposits, and interest-bearing liabilities, along with net interest margin | Metric | Q1 2023 Average Balance (in billions) | Q1 2022 Average Balance (in billions) | Change (YoY, in billions) | | :-------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Total loans | $15.357 | $13.534 | +$1.823 | | Total earning assets | $25.171 | $24.140 | +$1.031 | | Total core deposits | $19.916 | $21.437 | -$1.521 | | Total interest bearing liabilities | $23.553 | $22.619 | +$0.934 | | Net interest margin (tax-equivalent) | **3.08 %** | **3.20 %** | **-0.12 %** | [Rate/Volume Analysis](index=74&type=section&id=Rate%20/Volume%20Analysis) Analyzes changes in net interest income, interest income, and interest expense due to rate and volume fluctuations - **Net interest income** (tax-equivalent) increased by **$1.0 million** YoY for the three months ended March 31, 2023[269](index=269&type=chunk) - **Interest income** increased due to loan growth and higher loan yields, while **interest expense** increased significantly due to higher interest rates and increased borrowing costs[269](index=269&type=chunk) [Item 3 – Quantitative and Qualitative Disclosure about Market Risk](index=74&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) Discusses market risk, primarily interest rate risk, using a simulation model to quantify NII sensitivity and confirm policy adherence [Interest Rate Risk](index=74&type=section&id=Interest%20Rate%20Risk) Identifies interest rate risk as the primary market risk, quantified using a simulation model for NII sensitivity - **Interest rate risk** is the Company's primary market risk exposure, with the potential for loss of future earnings resulting from adverse changes in interest rates[271](index=271&type=chunk) - The Company uses a detailed and dynamic simulation model to quantify the estimated exposure of **net interest income (NII)** to sustained interest rate changes[273](index=273&type=chunk) [Net interest income simulation](index=75&type=section&id=Net%20interest%20income%20simulation) Presents the estimated sensitivity of net interest income to various interest rate shock scenarios | Rate Scenarios | Estimated Sensitivity (One Year) | Estimated Sensitivity (Two Years) | | :------------- | :------------------------------- | :-------------------------------- | | -100 bps Rate shock | **3.87 %** | **2.48 %** | | +100 bps Rate shock | **(3.19 %)** | **(3.04 %)** | | +200 bps Rate shock | **(6.23 %)** | **(5.96 %)** | | +300 bps Rate shock | **(9.30 %)** | **(8.91 %)** | | +400 bps Rate shock | **(12.36 %)** | **(11.87 %)** | - The Company's **NII sensitivity** remained within policy limits at March 31, 2023[274](index=274&type=chunk) [Item 4 – Controls and Procedures](index=74&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures, reporting no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=76&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Confirms the effectiveness of the Company's disclosure controls and procedures as of March 31, 2023 - The Company's **Chief Executive Officer** and **Chief Financial Officer** concluded that the disclosure controls and procedures were effective as of March 31, 2023[278](index=278&type=chunk) [Changes in Internal Controls](index=76&type=section&id=Changes%20in%20Internal%20Controls) Reports no material changes in the Company's internal control over financial reporting during the first quarter of 2023 - There have been no material changes in the Company's internal control over financial reporting during the first quarter of 2023[279](index=279&type=chunk) Part II. Other Information [Item 1 – Legal Proceedings](index=74&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) Addresses various claims, legal actions, and complaints arising in the ordinary course of business - The Company is involved in various claims, legal actions, and complaints arising in the ordinary course of business, which management believes will not have a material adverse effect on the financial condition or results of operations[281](index=281&type=chunk) [Item 1A – Risk Factors](index=74&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) Highlights updated risk factors, including potential adverse effects from recent financial services industry events like bank failures - Recent events impacting the financial services industry, including bank failures, could adversely affect the Company's results of operations and financial condition, potentially leading to reduced demand for products, deposit withdrawals, increased FDIC premiums, and stricter regulatory oversight[283](index=283&type=chunk) [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=75&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period - Not Applicable[286](index=286&type=chunk) [Item 3 – Defaults upon Senior Securities](index=75&type=section&id=Item%203%20%E2%80%93%20Defaults%20upon%20Senior%20Securities) This item is not applicable for the reporting period - Not Applicable[286](index=286&type=chunk) [Item 4 – Mine Safety Disclosures](index=75&type=section&id=Item%204%20%E2%80%93%20Mine%20Safety%20Disclosures) This item is not applicable for the reporting period - Not Applicable[285](index=285&type=chunk) [Item 5 – Other Information](index=75&type=section&id=Item%205%20%E2%80%93%20Other%20Information) This item is not applicable for the reporting period - Not Applicable[287](index=287&type=chunk) [Item 6 – Exhibits](index=76&type=section&id=Item%206%20%E2%80%93%20Exhibits) Lists the exhibits, including CEO and CFO certifications and XBRL documents - The exhibits include certifications from the **Chief Executive Officer** and **Chief Financial Officer**, as well as XBRL instance documents and related taxonomy files[289](index=289&type=chunk) [Signatures](index=77&type=section&id=Signatures) Provides the signatures of the President and CEO, and Executive Vice President and CFO - The report was signed by **Randall M. Chesler** (President and CEO) and **Ron J. Copher** (Executive Vice President and CFO) on **May 2, 2023**[292](index=292&type=chunk)

Financial Data and Key Metrics Changes - Stockholders' equity increased by $83.6 million or 3% to $2.9 billion during the current quarter [11] - Tangible book value per common share rose by $0.76 or 5% to $17.16 from the prior quarter [11] - Interest income for the quarter was $232 million, up $6.8 million or 3% from the prior quarter and increased by $41.4 million or 22% year-over-year [17] - The loan portfolio increased by $272 million or 7% annualized during the current quarter, reaching $15.5 billion [17] - Non-performing assets as a percentage of subsidiary assets improved to 0.12% from 0.24% in the prior year [18] Business Line Data and Key Metrics Changes - Core deposit funding totaled $20 billion, accounting for almost 85% of total funding liabilities, with a cost of 23 basis points compared to 8 basis points in the prior quarter [13] - New production yields for the quarter were 6.96%, up 62 basis points from the last quarter [12] Market Data and Key Metrics Changes - The company reported a strong liquidity position with $15.1 billion available through various channels [12] - Deposits grew during March, despite the banking crisis, indicating stability in the company's deposit base [6] Company Strategy and Development Direction - The company aims to leverage its unique business model and strong local relationships to navigate the current banking environment [5] - Management expressed confidence in the dynamic western markets served and the potential for M&A opportunities due to current industry headwinds [16][43] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality continues to perform at record levels with little signs of deterioration [16] - The company anticipates some growth in deposits in the second and third quarters, followed by potential outflows in the fourth quarter [19] - Management expects to fund growth primarily through cash flow from the investment portfolio [19] Other Important Information - The company declared a quarterly dividend of $0.33 per share, marking 152 consecutive quarterly dividends [13] - The investment portfolio is structured to generate cash flow and is designed to be shorter in duration [10] Q&A Session Summary Question: Deposit flow drivers and outflows - Management indicated that $600 million of core deposits and repo declined, primarily due to rate-driven factors in January, but stabilized and grew in March [26][27] Question: Early second quarter deposit trends - Management noted typical tax-related flows with some increases in early April, followed by outflows related to tax payments [30] Question: Loan growth expectations - Management expects loan growth to slow in the coming quarters, projecting growth on the low end of the mid-single digit range for the year [40] Question: M&A activity in the banking industry - Management believes current headwinds in the banking industry may motivate M&A activity, presenting opportunities for the company [43] Question: Margin expectations - Management indicated that the margin for the first quarter was 3.08%, with expectations for stability moving forward [44] Question: Expense management expectations - Management provided guidance for non-interest expenses to be between $135 million and $137 million for the remaining quarters of the year [57] Question: Office exposure and underwriting standards - Management reported that total office exposure is about 9.6% of the total portfolio, with a focus on maintaining conservative underwriting standards [93]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________________________________________________________________________ FORM 10-K ________________________________________________________________________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF TH ...

Glacier Bancorp, Inc. (NYSE:GBCI) Q4 2022 Earnings Conference Call January 27, 2023 11:00 AM ET Company Participants Randy Chesler - President & CEO Ron Copher - CFO Tom Dolan - Chief Credit Administrator Byron Pollan - Treasurer Conference Call Participants Jeff Rulis - D.A. Davidson Kelly Motta - KBW Operator Good day, and thank you for standing by. Welcome to the Glacier Bancorp Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presenta ...

Part I. Financial Information [Item 1 – Financial Statements](index=4&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements) This section presents Glacier Bancorp's unaudited condensed consolidated financial statements, with total assets at $26.73 billion and nine-month net income at $223.53 million Condensed Consolidated Statements of Financial Condition | | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $425.21M | $437.69M | | Total debt securities | $9.51B | $10.37B | | Loans receivable, net | $14.67B | $13.26B | | Goodwill | $985.39M | $985.39M | | Total assets | $26.73B | $25.94B | | **Liabilities** | | | | Total deposits | $21.88B | $21.34B | | Federal Home Loan Bank advances | $705.00M | $0 | | Total liabilities | $23.96B | $22.76B | | **Stockholders' Equity** | | | | Total stockholders' equity | $2.77B | $3.18B | | Total liabilities and stockholders' equity | $26.73B | $25.94B | Condensed Consolidated Statements of Operations (Nine Months Ended) | | September 30, 2022 | September 30, 2021 | | :--- | :--- | :--- | | Net Interest Income | $584.32M | $474.89M | | Provision for credit losses | $13.84M | $(4.88M) | | Total non-interest income | $92.25M | $110.46M | | Total non-interest expense | $389.89M | $300.78M | | Net Income | $223.53M | $234.05M | | Diluted earnings per share | $2.02 | $2.45 | Condensed Consolidated Statements of Cash Flows (Nine Months Ended) | | September 30, 2022 | September 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $350.75M | $417.31M | | Net cash used in investing activities | $(1.40B) | $(3.36B) | | Net cash provided by financing activities | $1.04B | $2.66B | | Net decrease in cash, cash equivalents | $(12.47M) | $(284.25M) | [Note 1. Nature of Operations and Summary of Significant Accounting Policies](index=12&type=section&id=Note%201.%20Nature%20of%20Operations%20and%20Summary%20of%20Significant%20Accounting%20Policies) Glacier Bancorp provides banking services across eight western states, with key accounting estimates including allowance for credit losses and debt securities valuation - The company provides retail banking, business banking, real estate, commercial, agriculture, and consumer loans, as well as mortgage origination and servicing across Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada[21](index=21&type=chunk) - Material estimates susceptible to significant change include the allowance for credit losses (ACL) on loans, valuation of debt securities, valuation of other real estate owned (OREO), and the evaluation of goodwill impairment[24](index=24&type=chunk) - The allowance for credit losses (ACL) for loans is based on expected contractual life, using a model that considers historical loss, current conditions, and a reasonable and supportable forecast period of four consecutive quarters[44](index=44&type=chunk)[46](index=46&type=chunk) Provision for Credit Losses (Loans vs. Unfunded Commitments) | | Three Months ended Sep 30, 2022 | Nine Months ended Sep 30, 2022 | | :--- | :--- | :--- | | Provision for credit loss loans | $8.38M | $11.37M | | Provision for credit losses unfunded | $(0.04M) | $2.47M | | **Total provision for credit losses** | **$8.34M** | **$13.84M** | [Note 2. Debt Securities](index=22&type=section&id=Note%202.%20Debt%20Securities) Total debt securities were $9.51 billion, with $5.76 billion in AFS securities experiencing $659 million in unrealized losses due to rising interest rates, but no credit losses were recorded Debt Securities Portfolio Composition (Fair Value) | | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Available-for-sale** | $5.76B | $9.17B | | U.S. government and federal agency | $443.47M | $1.35B | | Residential mortgage-backed securities | $3.39B | $5.70B | | Commercial mortgage-backed securities | $1.14B | $1.21B | | **Held-to-maturity (Amortized Cost)** | $3.76B | $1.20B | | **Total Debt Securities** | **$9.51B** | **$10.37B** | - The company determined that the decline in fair value of its AFS debt securities was primarily due to changes in interest rates and market spreads, not credit losses. As of September 30, 2022, management did not intend to sell these securities and did not expect to be required to sell them before recovery[100](index=100&type=chunk) - No allowance for credit losses (ACL) was recorded for either AFS or HTM debt securities as of September 30, 2022, as management expects an insignificant amount of credit losses[100](index=100&type=chunk)[104](index=104&type=chunk) [Note 3. Loans Receivable, Net](index=27&type=section&id=Note%203.%20Loans%20Receivable%2C%20Net) Net loans receivable grew to $14.67 billion, with commercial real estate dominating, while the allowance for credit losses increased to $178.19 million and past due loans significantly decreased to $45.9 million Loans Receivable by Segment | | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Residential real estate | $1.37B | $1.05B | | Commercial real estate | $9.58B | $8.63B | | Other commercial | $2.73B | $2.66B | | Home equity | $793.56M | $736.29M | | Other consumer | $376.60M | $348.84M | | **Total Loans receivable** | **$14.85B** | **$13.43B** | Allowance for Credit Losses (ACL) Activity (Nine Months Ended Sep 30, 2022) | | Total | | :--- | :--- | | Balance at beginning of period | $172.67M | | Provision for credit losses | $11.37M | | Charge-offs | $(10.91M) | | Recoveries | $5.06M | | **Balance at end of period** | **$178.19M** | - Total past due and non-accrual loans decreased substantially from **$118.2 million** at the end of 2021 to **$45.9 million** as of September 30, 2022[111](index=111&type=chunk) [Note 9. Derivatives and Hedging Activities](index=40&type=section&id=Note%209.%20Derivatives%20and%20Hedging%20Activities) The company uses derivative instruments, primarily interest rate caps with a fair value of $7.64 million, and residential real estate derivatives to manage interest rate risk on variable-rate debentures and mortgage loans held for sale - The company entered into interest rate caps with notional amounts of **$130.5 million** to hedge its variable rate subordinated debentures. At September 30, 2022, these derivatives had a fair value of **$7.64 million**, reported in other assets[141](index=141&type=chunk) - To mitigate risk on residential real estate loans held for sale, the company uses interest rate lock commitments and forward commitments to sell to-be-announced (TBA) securities. At September 30, 2022, TBA commitments totaled **$37 million**[143](index=143&type=chunk) [Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting Q3 2022 net income of $79.3 million (up 5% YoY) and nine-month net income of $224 million (down 5% YoY) due to various factors [Financial Highlights](index=50&type=section&id=Financial%20Highlights) Q3 2022 net income increased 5% to $79.3 million, while nine-month net income decreased 5% to $224 million, influenced by acquisition, loan growth, and reduced PPP income Quarterly Performance Summary | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Net Income | $79.3M | $75.6M | | Diluted EPS | $0.72 | $0.79 | | Return on average assets | 1.18% | 1.43% | | Efficiency ratio | 52.76% | 50.17% | - The **5% YoY increase** in Q3 net income was primarily driven by the acquisition of Altabancorp (Alta) and organic loan growth, which offset a **$10.1 million decrease** in gain on sale of residential loans and a **$7.6 million increase** in provision for credit loss[178](index=178&type=chunk) - The **5% YoY decrease** in nine-month net income was driven by a **$38.3 million decrease** in PPP-related income, a **$33.8 million decrease** in gain on sale of residential loans, and an **$18.7 million increase** in provision for credit loss[179](index=179&type=chunk) [Financial Condition Analysis](index=51&type=section&id=Financial%20Condition%20Analysis) Total assets reached $26.73 billion, with loan portfolio growth of $457 million, while tangible stockholders' equity decreased by $121.2 million due to unrealized losses on AFS securities Asset Composition Changes | | Sep 30, 2022 | Dec 31, 2021 | $ Change | | :--- | :--- | :--- | :--- | | Total debt securities | $9.51B | $10.37B | $(858.30M) | | Loans receivable, net | $14.67B | $13.26B | $1.41B | | **Total assets** | **$26.73B** | **$25.94B** | **$792.31M** | - Core deposits increased by **$96.0 million** (**2% annualized**) in Q3 2022, with non-interest bearing deposits growing by **$233 million** (**12% annualized**)[184](index=184&type=chunk) - Tangible book value per common share decreased to **$15.73** from **$19.33** at year-end 2021, primarily due to the increase in unrealized losses on available-for-sale securities[186](index=186&type=chunk) [Operating Results Analysis](index=54&type=section&id=Operating%20Results%20Analysis) Q3 2022 net interest income increased 26% to $205 million, while non-interest income decreased 13% to $30.4 million and non-interest expense rose 25% to $130 million - Q3 2022 net interest income increased by **$42.7 million** (**26%**) YoY, driven by the Alta acquisition and organic loan growth[191](index=191&type=chunk) - The tax-equivalent net interest margin for Q3 2022 was **3.34%**, an increase of **11 basis points** from the prior quarter, primarily due to increased core loan yields[193](index=193&type=chunk) - Gain on sale of residential loans for Q3 2022 was **$3.8 million**, a decrease of **$10.1 million** (**72%**) from Q3 2021, reflecting reduced mortgage activity due to rising rates[195](index=195&type=chunk) - The provision for credit losses was **$13.8 million** for the first nine months of 2022, compared to a benefit of **$4.9 million** in the same period of 2021, primarily due to organic loan growth[211](index=211&type=chunk) [Credit Quality and Allowance for Credit Losses](index=63&type=section&id=Credit%20Quality%20and%20Allowance%20for%20Credit%20Losses) Credit quality improved, with non-performing assets decreasing to $35.06 million (0.13% of assets) and the Allowance for Credit Losses (ACL) on loans at $178.19 million (1.20% of total loans) Non-Performing Assets Trend | | Sep 30, 2022 | Dec 31, 2021 | Sep 30, 2021 | | :--- | :--- | :--- | :--- | | Total non-performing assets | $35.06M | $67.69M | $51.18M | | NPA as a % of subsidiary assets | 0.13% | 0.26% | 0.24% | - Early stage delinquencies (accruing loans 30-89 days past due) decreased to **$10.9 million** at Q3 2022, down from **$50.6 million** at year-end 2021[229](index=229&type=chunk) Allowance for Credit Losses (ACL) on Loans | Metric | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | ACL Balance | $178.19M | $172.67M | | ACL as a % of total loans | 1.20% | 1.29% | [Liquidity and Capital Resources](index=72&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, primarily from deposits, with $2.88 billion available from FHLB, and robust capital ratios exceeding 'well-capitalized' requirements - Primary sources of funds are customer deposits, loan repayments, and borrowings from the FHLB. Total deposits were **$21.9 billion** as of September 30, 2022[253](index=253&type=chunk)[254](index=254&type=chunk) Available Liquidity Sources (Sep 30, 2022) | | Amount Available | | :--- | :--- | | FHLB advances | $2.88B | | FRB discount window | $1.81B | | Unsecured lines of credit | $635.00M | | Total unencumbered debt securities | $6.76B | Glacier Bank Regulatory Capital Ratios (Sep 30, 2022) | Ratio | Actual | Well Capitalized Requirement | | :--- | :--- | :--- | | Common Equity Tier 1 | 12.46% | 6.50% | | Tier 1 Capital | 12.46% | 8.00% | | Total Capital | 13.43% | 10.00% | | Leverage Ratio | 8.85% | 5.00% | [Item 3 – Quantitative and Qualitative Disclosure about Market Risk](index=79&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) No material changes in quantitative and qualitative disclosures about market risk were reported from the 2021 Annual Report on Form 10-K - There are no material changes in the quantitative and qualitative disclosures about market risk from those in the Company's 2021 Annual Report on Form 10-K[279](index=279&type=chunk) [Item 4 – Controls and Procedures](index=79&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during Q3 2022 - The CEO and CFO have concluded that the Company's disclosure controls and procedures are effective as of September 30, 2022[280](index=280&type=chunk) - No material changes to the Company's internal control over financial reporting were identified during the third quarter of 2022[281](index=281&type=chunk) Part II. Other Information [Item 1 – Legal Proceedings](index=79&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company is involved in various legal actions, but management expects no material adverse effect on financial condition or operations - The Company is involved in various claims and legal actions arising in the ordinary course of business, but management does not expect them to have a material adverse effect on financial condition or operations[283](index=283&type=chunk) [Item 1A – Risk Factors](index=79&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) No material changes from the risk factors previously disclosed in the Company's 2021 Annual Report on Form 10-K were reported - There have been no material changes from the risk factors previously disclosed in the Company's 2021 Annual Report on Form 10-K[284](index=284&type=chunk)

Glacier Bancorp, Inc. (NYSE:GBCI) Q3 2022 Earnings Conference Call October 21, 2022 11:00 AM ET Company Participants Randall Chesler - President & CEO Ron Copher - CFO Tom Dolan - Chief Credit Administrator Byron Pollan - Treasurer Conference Call Participants Jeff Rulis - D.A. Davidson Brandon King - Truist Securities Matthew Clark - Piper Sandler Kelly Motta - KBW Tim Coffey - Janney David Feaster - Raymond James Operator Good day, and thank you for standing by. Welcome to the Glacier Bancorp Third Quarte ...

FORM 10-Q ____________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________ ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ 49 Commons Loop Kalispell, ...

Glacier Bancorp, Inc. (NYSE:GBCI) Q2 2022 Earnings Conference Call July 22, 2022 11:00 AM ET Company Participants Randall Chesler - President and Chief Executive Officer Ron Copher - Chief Financial Officer Tom Dolan - Chief Credit Administrator Byron Pollan - Treasurer Conference Call Participants Matthew Clark - Piper Sandler David Feaster - Raymond James Brandon King - Truist Securities Andrew Terrell - Stephens Jeff Rulis - D.A. Davidson Operator Good day. And thank you for standing by. Welcome to the ...

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 March 31, 2022 ☐ 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 00 ...