Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended June 30, 2024

2nd Quarter 2024 Highlights:

  • Net income was $44.7 million for the current quarter, an increase of $12.1 million, or 37 percent, from the prior quarter net income of $32.6 million and a decrease of $10.2 million, or 19 percent, from the prior year second quarter net income of $55.0 million.
  • The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.68 percent, an increase of 9 basis points from the prior quarter net interest margin of 2.59 percent.
  • The loan portfolio of $16.852 billion increased $119 million, or 3 percent annualized, during the current quarter.
  • The loan yield of 5.58 percent in the current quarter increased 12 basis points from the prior quarter loan yield of 5.46 percent and increased 46 basis points from the prior year second quarter loan yield of 5.12 percent.
  • Non-interest bearing deposits of $6.093 billion increased $38.4 million or 3 percent annualized during the current quarter.
  • Non-interest expense of $141 million for the current quarter decreased $10.9 million, or 7 percent, over the prior quarter and increased $10.3 million, or 8 percent, over the prior year second quarter.
  • The total cost of funding (including non-interest bearing deposits) of 1.80 percent in the current quarter decreased 4 basis points from the prior quarter total cost of funding of 1.84 percent.
  • Non-performing assets of $18.0 million at June 30, 2024 decreased $7.4 million, or 29 percent, over the prior quarter and decreased $14.0 million, or 44 percent, over the prior year second quarter.
  • Stockholders’ equity of $3.137 billion increased $26.7 million, or 1 percent, during the current quarter and increased $211 million, or 7 percent, over the prior year second quarter.
  • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 157 consecutive quarterly dividends and has increased the dividend 49 times.

First Half 2024 Highlights:

  • Net income for the first half of 2024 was $77.3 million, a decrease of $38.8 million, or 33 percent, from the prior year first half net income of $116 million.
  • The loan portfolio organically increased $204 million, or 3 percent annualized, during the first half of 2024.
  • The $2.740 billion of FRB Bank Term Funding (“BTFP”) was paid off during the current year through a combination of Federal Home Loan Bank (“FHLB”) advances and cash.
  • Interest income for the first six months of 2024 was $553 million, an increase of $74.0 million, or 15 percent, over the $479 million of interest income for the first six months of the prior year.
  • Dividends declared in the first half of 2024 were $0.66 per share.
  • The Company completed the acquisition and core system conversion of Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, “Wheatland”), a leading eastern Washington community bank headquartered in Spokane with total assets of $778 million.

Financial Summary  

  At or for the Three Months ended   At or for the Six months ended
(Dollars in thousands, except per share and market data) Jun 30,
2024
  Mar 31,
2024
  Jun 30,
2023
  Jun 30,
2024
  Jun 30,
2023
Operating results                  
Net income $ 44,708     32,627     54,955     77,335     116,166  
Basic earnings per share $ 0.39     0.29     0.50     0.68     1.05  
Diluted earnings per share $ 0.39     0.29     0.50     0.68     1.05  
Dividends declared per share $ 0.33     0.33     0.33     0.66     0.66  
Market value per share                  
Closing $ 37.32     40.28     31.17     37.32     31.17  
High $ 40.18     42.75     42.21     42.75     50.03  
Low $ 34.35     34.74     26.77     34.35     26.77  
Selected ratios and other data                  
Number of common stock shares outstanding   113,394,092     113,388,590     110,873,887     113,394,092     110,873,887  
Average outstanding shares – basic   113,390,539     112,492,142     110,870,964     112,941,341     110,847,806  
Average outstanding shares – diluted   113,405,491     112,554,402     110,875,535     112,981,531     110,879,654  
Return on average assets (annualized)   0.66 %   0.47 %   0.81 %   0.56 %   0.87 %
Return on average equity (annualized)   5.77 %   4.25 %   7.52 %   5.01 %   8.03 %
Efficiency ratio   67.97 %   74.41 %   62.73 %   71.17 %   61.52 %
Loan to deposit ratio   84.03 %   82.04 %   79.92 %   84.03 %   79.92 %
Number of full time equivalent employees   3,399     3,438     3,369     3,399     3,369  
Number of locations   231     232     222     231     222  
Number of ATMs   286     285     274     286     274  
 

KALISPELL, Mont., July 18, 2024 (GLOBE NEWSWIRE) — Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $44.7 million for the current quarter, an increase of $12.1 million, or 37 percent from the prior quarter net income of $32.6 million and a decrease of $10.2 million, or 19 percent, from the $55.0 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.39 per share, an increase of 34 percent from the prior quarter diluted earnings per share of $0.29 per share and a decrease of 22 percent from the prior year second quarter diluted earnings per share of $0.50. The decrease in net income compared to the prior year second quarter was primarily due to the significant increase in funding costs over the prior year second quarter combined with the increased costs associated with the acquisition of Wheatland. “We had a strong second quarter led by an expanding margin and continued favorable performance trends across the company,” said Randy Chesler, President and Chief Executive Officer. “We were especially pleased to see the continued excellent credit performance and the solid loan growth in the quarter.”

Net income for the six months ended June 30, 2024 was $77.3 million, a decrease of $38.8 million, or 33 percent, from the $116 million net income for the first six months of the prior year. Diluted earnings per share for the first half of 2024 was $0.68 per share, a decrease of $0.37 per share from the prior year first half diluted earnings per share of $1.05. The decrease in net income for the first half of the current year compared to the prior year first half was primarily due to the significant increase in funding costs. In addition, the current year included a $6.1 million of provision for credit losses and increased operating costs associated with the acquisition of Wheatland.

On January 31, 2024, the Company completed the acquisition of Wheatland, headquartered in Spokane, Washington. Wheatland has 14 branches in eastern Washington and was combined with the North Cascades Bank division, with combined operations under the name Wheatland Bank, division of Glacier Bank. The Company’s results of operations and financial condition include the Wheatland acquisition beginning on the acquisition date. The following table discloses the preliminary fair value estimates of select classifications of assets and liabilities acquired:

  Wheatland
(Dollars in thousands) January 31,
2024
Total assets $ 777,659
Debt securities   187,183
Loans receivable   450,403
Non-interest bearing deposits   277,651
Interest bearing deposits   339,304
Borrowings   58,500
 

Asset Summary

                  $ Change from
(Dollars in thousands) Jun 30,
2024
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
Cash and cash equivalents $ 800,779     788,660     1,354,342     1,051,320     12,119     (553,563 )   (250,541 )
Debt securities, available-for-sale   4,499,541     4,629,073     4,785,719     4,999,820     (129,532 )   (286,178 )   (500,279 )
Debt securities, held-to-maturity   3,400,403     3,451,583     3,502,411     3,608,289     (51,180 )   (102,008 )   (207,886 )
Total debt securities   7,899,944     8,080,656     8,288,130     8,608,109     (180,712 )   (388,186 )   (708,165 )
Loans receivable                          
Residential real estate   1,771,528     1,752,514     1,704,544     1,588,175     19,014     66,984     183,353  
Commercial real estate   10,713,964     10,672,269     10,303,306     10,220,751     41,695     410,658     493,213  
Other commercial   3,066,028     3,030,608     2,901,863     2,888,810     35,420     164,165     177,218  
Home equity   905,884     883,062     888,013     862,240     22,822     17,871     43,644  
Other consumer   394,587     394,049     400,356     394,986     538     (5,769 )   (399 )
Loans receivable   16,851,991     16,732,502     16,198,082     15,954,962     119,489     653,909     897,029  
Allowance for credit losses   (200,955 )   (198,779 )   (192,757 )   (189,385 )   (2,176 )   (8,198 )   (11,570 )
Loans receivable, net   16,651,036     16,533,723     16,005,325     15,765,577     117,313     645,711     885,459  
Other assets   2,453,581     2,419,131     2,094,832     2,102,673     34,450     358,749     350,908  
Total assets $ 27,805,340     27,822,170     27,742,629     27,527,679     (16,830 )   62,711     277,661  
 

The $801 million cash balance at June 30, 2024 decreased $554 million from the prior year end as cash was utilized to partially fund the maturity of the BTFP at the end of the prior quarter. Total debt securities of $7.900 billion at June 30, 2024 decreased $181 million, or 2 percent, during the current quarter and decreased $708 million, or 8 percent, from the prior year second quarter. Debt securities represented 28 percent of total assets at June 30, 2024 compared to 30 percent at December 31, 2023 and 31 percent at June 30, 2023.

The loan portfolio of $16.852 billion at June 30, 2024 increased $119 million, or 3 percent annualized, during the current quarter and increased $897 million, or 6 percent, from the prior year second quarter. Excluding the Wheatland acquisition, the loan portfolio increased $204 million, or 3 percent annualized, during the first half of 2024 and increased $447 million, or 3 percent, from the prior year second quarter.

Credit Quality Summary

  At or for the Six
Months ended
  At or for the
Three Months
ended
  At or for the
Year ended
  At or for the Six
Months ended
(Dollars in thousands) Jun 30,
2024
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
Allowance for credit losses              
Balance at beginning of period $ 192,757     192,757     182,283     182,283  
Acquisitions   3     3          
Provision for credit losses   14,157     9,091     20,790     11,514  
Charge-offs   (8,430 )   (4,295 )   (15,095 )   (7,083 )
Recoveries   2,468     1,223     4,779     2,671  
Balance at end of period $ 200,955     198,779     192,757     189,385  
Provision for credit losses              
Loan portfolio $ 14,157     9,091     20,790     11,514  
Unfunded loan commitments   (2,390 )   (842 )   (5,995 )   (3,271 )
Total provision for credit losses $ 11,767     8,249     14,795     8,243  
Other real estate owned $ 432     432     1,032      
Other foreclosed assets   198     459     471     52  
Accruing loans 90 days or more past due   4,692     3,796     3,312     3,876  
Non-accrual loans   12,686     20,738     20,816     28,094  
Total non-performing assets $ 18,008     25,425     25,631     32,022  
Non-performing assets as a percentage of subsidiary assets   0.06 %   0.09 %   0.09 %   0.12 %
Allowance for credit losses as a percentage of non-performing loans   1,116 %   810 %   799 %   592 %
Allowance for credit losses as a percentage of total loans   1.19 %   1.19 %   1.19 %   1.19 %
Net charge-offs as a percentage of total loans   0.04 %   0.02 %   0.06 %   0.03 %
Accruing loans 30-89 days past due $ 49,678     62,423     49,967     24,863  
U.S. government guarantees included in non-performing assets $ 1,228     1,490     1,503     1,035  
 

Non-performing assets of $18.0 million at June 30, 2024 decreased $7.4 million, or 29 percent, over the prior quarter and decreased $14.0 million, or 44 percent, over the prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2024 was 0.06 percent compared to 0.09 percent in the prior quarter and 0.12 percent in the prior year second quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $49.7 million at June 30, 2024 decreased $12.7 million from the prior quarter and increased $24.8 million from prior year second quarter. Early stage delinquencies as a percentage of loans at June, 2024 were 0.29 percent compared to 0.37 percent for the prior quarter end and 0.16 percent for the prior year second quarter.

The current quarter credit loss expense of $3.5 million included $5.1 million of credit loss expense from loans and $1.6 million of credit loss benefit from unfunded loan commitments. For the first half of the current year, the provision for credit losses included $5.3 million of provision for credit losses on loans and $818 thousand of provision for credit losses on unfunded loan commitments from the acquisition of Wheatland.

The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at June 30, 2024 was 1.19 percent and remained unchanged from the prior year end and the prior year second quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

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

(Dollars in thousands) Provision for
Credit Losses
Loans
  Net 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
Second quarter 2024 $ 5,066   $ 2,890   1.19 %   0.29 %   0.06 %
First quarter 2024   9,091     3,072   1.19 %   0.37 %   0.09 %
Fourth quarter 2023   4,181     3,695   1.19 %   0.31 %   0.09 %
Third quarter 2023   5,095     2,209   1.19 %   0.09 %   0.15 %
Second quarter 2023   5,254     2,473   1.19 %   0.16 %   0.12 %
First quarter 2023   6,260     1,939   1.20 %   0.16 %   0.12 %
Fourth quarter 2022   6,060     1,968   1.20 %   0.14 %   0.12 %
Third quarter 2022   8,382     3,154   1.20 %   0.07 %   0.13 %
 

Net charge-offs for the current quarter were $2.9 million compared to $3.1 million in the prior quarter and $2.5 million for the prior year second quarter. Net charge-offs of $2.9 million included $2.2 million in deposit overdraft net charge-offs and $716 thousand of net loan charge-offs.

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

Liability Summary

                  $ Change from
(Dollars in thousands) Jun 30,
2024
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
Deposits                          
Non-interest bearing deposits $ 6,093,430   6,055,069   6,022,980   6,458,394   38,361     70,450     (364,964 )
NOW and DDA accounts   5,219,838   5,376,605   5,321,257   5,154,442   (156,767 )   (101,419 )   65,396  
Savings accounts   2,862,034   2,949,908   2,833,887   2,808,571   (87,874 )   28,147     53,463  
Money market deposit accounts   2,858,850   3,002,942   2,831,624   3,094,302   (144,092 )   27,226     (235,452 )
Certificate accounts   3,064,613   3,039,190   2,915,393   2,014,104   25,423     149,220     1,050,509  
Core deposits, total   20,098,765   20,423,714   19,925,141   19,529,813   (324,949 )   173,624     568,952  
Wholesale deposits   2,994   3,809   4,026   478,417   (815 )   (1,032 )   (475,423 )
Deposits, total   20,101,759   20,427,523   19,929,167   20,008,230   (325,764 )   172,592     93,529  
Repurchase agreements   1,629,504   1,540,008   1,486,850   1,356,862   89,496     142,654     272,642  
Deposits and repurchase agreements, total   21,731,263   21,967,531   21,416,017   21,365,092   (236,268 )   315,246     366,171  
Federal Home Loan Bank advances   2,350,000   2,140,157       209,843     2,350,000     2,350,000  
FRB Bank Term Funding       2,740,000   2,740,000       (2,740,000 )   (2,740,000 )
Other borrowed funds   88,149   88,814   81,695   75,819   (665 )   6,454     12,330  
Subordinated debentures   133,024   132,984   132,943   132,863   40     81     161  
Other liabilities   365,459   381,977   351,693   287,379   (16,518 )   13,766     78,080  
Total liabilities $ 24,667,895   24,711,463   24,722,348   24,601,153   (43,568 )   (54,453 )   66,742  
 

Total core deposits of $20.099 billion at June 30, 2024 decreased $325 million, or 2 percent, during the current quarter and increased $569 million, or 3 percent, from the prior year second quarter. Excluding the Wheatland acquisition, total core deposits decreased $48.0 million, or 25 basis points, from the prior year second quarter. Non-interest bearing deposits of $6.093 billion increased $38.4 million, or 3 percent annualized, during the current quarter. Non-interest bearing deposits represented 30 percent of total deposits at both June 30, 2024 and December 31, 2023 compared to 32 percent at June 30, 2023.

FHLB borrowings of $2.350 billion increased $210 million, or 10 percent, during the quarter. Upon maturity in the prior quarter, the Company paid off its $2.740 billion BTFP borrowings with a combination of $2.140 billion in FHLB borrowings and cash.

Stockholders’ Equity Summary

                  $ Change from
(Dollars in thousands, except per share data) Jun 30,
2024
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
Common equity $ 3,492,096     3,483,012     3,394,394     3,357,313     9,084   97,702     134,783  
Accumulated other comprehensive loss   (354,651 )   (372,305 )   (374,113 )   (430,787 )   17,654   19,462     76,136  
Total stockholders’ equity   3,137,445     3,110,707     3,020,281     2,926,526     26,738   117,164     210,919  
Goodwill and core deposit intangible, net   (1,066,790 )   (1,069,808 )   (1,017,263 )   (1,022,118 )   3,018   (49,527 )   (44,672 )
Tangible stockholders’ equity $ 2,070,655     2,040,899     2,003,018     1,904,408     29,756   67,637     166,247  
 
Stockholders’ equity to total assets   11.28 %   11.18 %   10.89 %   10.63 %            
Tangible stockholders’ equity to total tangible assets   7.74 %   7.63 %   7.49 %   7.18 %            
Book value per common share $ 27.67     27.43     27.24     26.40     0.24   0.43   1.27
Tangible book value per common share $ 18.26     18.00     18.06     17.18     0.26   0.20   1.08
 

Tangible stockholders’ equity of $2.071 billion at June 30, 2024 increased $67.6 million, or 3 percent, compared to the prior year end and was primarily due to $92.4 million of Company common stock issued for the acquisition of Wheatland. The increase was partially offset by the increase in goodwill and core deposits associated with the acquisition of Wheatland. Tangible book value per common share of $18.26 at the current quarter end increased $0.20 per share, or 1 percent, from the prior year end and increased $1.08 per share, or 6 percent, from the prior year second quarter.

Cash Dividends
On June 25, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable July 18, 2024 to shareholders of record on July 9, 2024. The dividend was the Company’s 157th consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

 
Operating Results for Three Months Ended June 30, 2024 
Compared to March 31, 2024, and June 30, 2023
 
Income Summary
  Three Months ended   $ Change from
(Dollars in thousands) Jun 30,
2024
  Mar 31,
2024
  Jun 30,
2023
  Mar 31,
2024
  Jun 30,
2023
Net interest income                  
Interest income $ 273,834     279,402     247,365     (5,568 )   26,469  
Interest expense   107,356     112,922     75,385     (5,566 )   31,971  
Total net interest income   166,478     166,480     171,980     (2 )   (5,502 )
Non-interest income                  
Service charges and other fees   19,422     18,563     18,967     859     455  
Miscellaneous loan fees and charges   4,821     4,362     4,162     459     659  
Gain on sale of loans   4,669     3,362     3,528     1,307     1,141  
(Loss) gain on sale of securities   (12 )   16     (23 )   (28 )   11  
Other income   3,304     3,686     2,445     (382 )   859  
Total non-interest income   32,204     29,989     29,079     2,215     3,125  
Total income $ 198,682     196,469     201,059     2,213     (2,377 )
Net interest margin (tax-equivalent)   2.68 %   2.59 %   2.74 %        
 

Net Interest Income
The current quarter interest income of $274 million decreased $5.6 million, or 2 percent, over the prior quarter and was driven by the decrease in cash balances used to partially payoff of the BTFP borrowings at the end of the first quarter of the current year. The current quarter interest income increased $26.5 million, or 11 percent, from the prior year second quarter was due to the increase in the loan yields and the increase in average balances of the loan portfolio. The loan yield of 5.58 percent in the current quarter increased 12 basis points from the prior quarter loan yield of 5.46 percent and increased 46 basis points from the prior year second quarter loan yield of 5.12 percent.

The current quarter interest expense of $107 million decreased $5.6 million, or 5 percent, over the prior quarter and was primarily attributable to the payoff of the BTFP borrowings. The current quarter interest expense increased $32.0 million, or 42 percent, over the prior year second quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 1.36 percent for the current quarter compared to 1.34 percent in the prior quarter and 0.57 percent for the prior year second quarter. The total cost of funding (including non-interest bearing deposits) of 1.80 percent in the current quarter decreased 4 basis points from the prior quarter which was driven by the decrease in borrowings. The current quarter cost of funds increased 54 basis points from the prior year second quarter which was the result of the increased deposit rates.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.68 percent, an increase of 9 basis points from the prior quarter net interest margin of 2.59 percent and was primarily driven by a decrease in average cash and wholesale funding balances resulting from the payoff of BTFP borrowings at the end of the first quarter of 2024 as well as an increase in loan yields. Excluding the 4 basis points from discount accretion and 1 basis point from non-accrual interest, the core net interest margin was 2.63 percent in the current quarter compared to 2.55 percent in the prior quarter. “The Company was pleased with the 9 basis points increase in the net interest margin,” said Ron Copher, Chief Financial Officer. “The growth in the loan portfolio at higher yields, the reduction in high cost wholesale funding, and the continued progress in slowing the pace of deposit cost increase contributed to the improved net interest margin during the current quarter.”

Non-interest Income
Non-interest income for the current quarter totaled $32.2 million, which was an increase of $2.2 million, or 7 percent, over the prior quarter and an increase of $3.1 million, or 11 percent, over the prior year second quarter. Service charges and other fees of $19.4 million for the current quarter increased $859 thousand, or 5 percent, compared to the prior quarter and increased $455 thousand, or 2 percent, compared to the prior year second quarter. Gain on the sale of residential loans of $4.7 million for the current quarter increased $1.3 million, or 39 percent, compared to the prior quarter and increased $1.1 million, or 32 percent, from the prior year second quarter.

Non-interest Expense Summary

  Three Months ended   $ Change from
(Dollars in thousands) Jun 30,
2024
  Mar 31,
2024
  Jun 30,
2023
  Mar 31,
2024
  Jun 30,
2023
Compensation and employee benefits $ 84,434   85,789   78,764   (1,355 )   5,670
Occupancy and equipment   11,594   11,883   10,827   (289 )   767
Advertising and promotions   4,362   3,983   3,733   379     629
Data processing   9,387   9,159   8,402   228     985
Other real estate owned and foreclosed assets   149   25   14   124     135
Regulatory assessments and insurance   5,393   7,761   5,314   (2,368 )   79
Core deposit intangibles amortization   3,017   2,760   2,427   257     590
Other expenses   22,616   30,483   21,123   (7,867 )   1,493
Total non-interest expense $ 140,952   151,843   130,604   (10,891 )   10,348
 

Total non-interest expense of $141 million for the current quarter decreased $10.9 million, or 7 percent, over the prior quarter and increased $10.3 million, or 8 percent, over the prior year second quarter. Compensation and employee benefits of $84.4 million decreased $1.4 million from the prior quarter and was primarily driven by a decrease in performance-related compensation. Compensation and employee benefits increased $5.7 million, or 7 percent, from the prior year second quarter and was driven by annual salary increases and increases from the acquisition of Wheatland. Regulatory assessment and insurance of $5.4 million decreased $2.4 million, or 31 percent, from the prior quarter and was primarily attributable to the prior quarter accrual adjustment of the FDIC special assessment for the estimated losses associated with the bank failures in March of 2023.

Other expenses of $22.6 million decreased $7.9 million, or 26 percent, from the prior quarter which was primarily attributable to a $3.9 million decrease in acquisition-related expenses and a $2.5 million decrease in expenses associated with equity investments in tax credits.

Federal and State Income Tax Expense

Tax expense during the second quarter of 2024 was $9.5 million, an increase of $5.8 million, or 153 percent, compared to the prior quarter and a decrease of $3.2 million, or 25 percent, from the prior year second quarter. The effective tax rate in the current quarter was 17.5 percent compared to 10.3 percent in the prior quarter and 18.8 percent in the prior year second quarter. The increase in the effective tax rate from the prior quarter was the result of an increase in pre-tax income and a decrease in federal income tax credits.

Efficiency Ratio
The efficiency ratio was 67.97 percent in the current quarter compared to 74.41 percent in the prior quarter and 62.73 percent in the prior year second quarter. The decrease from the prior quarter was principally driven by the decreased operating costs, including acquisition-related costs, from the Wheatland acquisition. The increase in the efficiency ratio from prior year second quarter was the combined impact of the expenses related to the Wheatland acquisition and a decrease in net interest income.

 
Operating Results for Six Months Ended June 30, 2024
Compared to June 30, 2023
 
Income Summary
  Six months ended    
(Dollars in thousands) Jun 30,
2024
  Jun 30,
2023
  $ Change   % Change
Net interest income              
Interest income $ 553,236     $ 479,253     $ 73,983     15  %
Interest expense   220,278       121,081       99,197     82  %
Total net interest income   332,958       358,172       (25,214 )   (7 )%
Non-interest income              
Service charges and other fees   37,985       36,738       1,247     3  %
Miscellaneous loan fees and charges   9,183       8,129       1,054     13  %
Gain on sale of loans   8,031       5,928       2,103     35  %
Gain (loss) on sale of securities   4       (137 )     141     (103 )%
Other income   6,990       6,316       674     11  %
Total non-interest income   62,193       56,974       5,219     9  %
Total Income $ 395,151     $ 415,146     $ (19,995 )   (5 )%
Net interest margin (tax-equivalent)   2.64 %     2.91 %        
 

Net Interest Income
Net-interest income of $333 million for the first half of 2024 decreased $25.2 million, or 7 percent, over 2023 and was primarily driven by increased interest expense which outpaced the increase in interest income. Interest income of $553 million for 2024 increased $74.0 million, or 15 percent, from the prior year and was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The loan yield was 5.52 percent during the first half of 2024, an increase of 45 basis points from the prior year first half loan yield of 5.07 percent.

Interest expense of $220 million for the first half of 2024 increased $99 million, or 82 percent, over the same period in the prior year and was primarily the result of higher interest rates on deposits. Core deposit cost (including non-interest bearing deposits) was 1.35 percent for the first six months of 2024 compared to 0.40 percent for the same period in the prior year. The total funding cost (including non-interest bearing deposits) for the first six months of 2024 was 1.82 percent, which was an increase of 79 basis points over the first six months of the prior year funding cost of 1.03 percent.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2024 was 2.64 percent, a 27 basis points decrease from the net interest margin of 2.91 percent for the first half of the prior year. Excluding the 3 basis points from discount accretion and 1 basis point from non-accrual interest, the core net interest margin was 2.60 percent in the first half of the current year compared to 2.90 percent in the prior year first half.

Non-interest Income  
Non-interest income of $62.2 million for the first six months of 2024 increased $5.2 million, or 9 percent, over the same period last year. Gain on sale of residential loans of $8.0 million for the first six months of 2024 increased by $2.1 million, or 35 percent, over the first six months of the prior year.

Non-interest Expense Summary

  Six months ended        
(Dollars in thousands) Jun 30,
2024
  Jun 30,
2023
  $ Change   % Change
Compensation and employee benefits $ 170,223   $ 160,241   $ 9,982   6 %
Occupancy and equipment   23,477     22,492     985   4 %
Advertising and promotions   8,345     7,968     377   5 %
Data processing   18,546     16,511     2,035   12 %
Other real estate owned and foreclosed assets   174     26     148   569 %
Regulatory assessments and insurance   13,154     10,217     2,937   29 %
Core deposit intangibles amortization   5,777     4,876     901   18 %
Other expenses   53,099     43,255     9,844   23 %
Total non-interest expense $ 292,795   $ 265,586   $ 27,209   10 %
 

Total non-interest expense of $293 million for the first half of 2024 increased $27.2 million, or 10 percent, over the same period in the prior year. Compensation and employee benefits expense of $170 million in the first six months of 2024 increased $10.0 million, or 6 percent, over the same period in the prior year and was driven by annual salary increases and the acquisition of Wheatland. Data processing expenses of $18.5 million for the first half of 2024 increased $2.0 million, or 12 percent, from the same period in the prior year. Regulatory assessments and insurance expense of $13.2 million for the first half of 2024 increased $2.9 million, or 29 percent, over the same period in the prior year which was principally due to the accrual adjustment for the FDIC special assessment. Other expenses of $53.1 million for the first half of 2024 increased $9.8 million, or 23 percent, from the first half of the prior year and was primarily driven by an increase of $6.9 million of acquisition-related expenses, which was partially offset by gains of $2.5 million from the sale of former branch facilities and disposal of fixed assets.

Provision for Credit Losses

The provision for credit loss expense was $11.8 million for the first half of 2024, an increase of $3.5 million, or 43 percent, over the same period in the prior year and was primarily attributable to $5.3 million from the acquisition of Wheatland. Net charge-offs for the first half of 2024 were $6.0 million compared to $4.4 million in the first half of 2023.

Federal and State Income Tax Expense
Tax expense of $13.3 million for the first six months of 2024 decreased $11.9 million, or 47 percent, over the prior year. The effective tax rate for the first six months of 2024 was 14.6 percent compared to 17.8 percent for the same period in the prior year. The decrease in tax expense and the resulting effective tax rate was the result of a combination of increased federal tax credits and a decrease in the pre-tax income.

Efficiency Ratio
The efficiency ratio was 71.17 percent for the first six months of 2024 compared to 61.52 percent for the same period of 2023. The increase from the prior year was primarily attributable to the increase in interest expense in the current year that outpaced the increase in interest income and increased non-interest expense.

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

  • risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
  • changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
  • legislative or regulatory changes, including increased FDIC insurance rates and assessments, changes in the review and regulation of bank mergers, or increased banking and consumer protection regulations, that may adversely affect the Company’s business and strategies;
  • risks related to overall economic conditions, including the impact on the economy of a rising interest rate environment, inflationary pressures, and geopolitical instability, including the wars in Ukraine and the Middle East;
  • risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;
  • costs or difficulties related to the completion and integration of pending or future acquisitions;
  • impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
  • reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
  • deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company’s ability to obtain and maintain customers;
  • changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
  • risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;
  • risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
  • material failure, potential interruption or breach in security of the Company’s systems or changes in technological which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
  • risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
  • success in managing risks involved in the foregoing; and
  • effects of any reputational damage to the Company resulting from any of the foregoing.

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

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, July 19, 2024. Please note that our conference call host no longer offers a general dial-in number. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BIb4af6c99b1b447c3b8563d90c2fcf09d. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/555kzj6s. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.

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

 
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
 
(Dollars in thousands, except per share data) Jun 30,
2024
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
Assets              
Cash on hand and in banks $ 271,107     232,064     246,525     285,920  
Interest bearing cash deposits   529,672     556,596     1,107,817     765,400  
Cash and cash equivalents   800,779     788,660     1,354,342     1,051,320  
Debt securities, available-for-sale   4,499,541     4,629,073     4,785,719     4,999,820  
Debt securities, held-to-maturity   3,400,403     3,451,583     3,502,411     3,608,289  
Total debt securities   7,899,944     8,080,656     8,288,130     8,608,109  
Loans held for sale, at fair value   39,745     27,035     15,691     35,006  
Loans receivable   16,851,991     16,732,502     16,198,082     15,954,962  
Allowance for credit losses   (200,955 )   (198,779 )   (192,757 )   (189,385 )
Loans receivable, net   16,651,036     16,533,723     16,005,325     15,765,577  
Premises and equipment, net   451,515     443,273     421,791     405,407  
Other real estate owned and foreclosed assets   630     891     1,503     52  
Accrued interest receivable   102,279     106,063     94,526     88,351  
Deferred tax asset   155,834     161,327     159,070     179,815  
Core deposit intangible, net   43,028     46,046     31,870     36,725  
Goodwill   1,023,762     1,023,762     985,393     985,393  
Non-marketable equity securities   121,810     111,129     12,755     10,014  
Bank-owned life insurance   187,793     186,625     171,101     169,195  
Other assets   327,185     312,980     201,132     192,715  
Total assets $ 27,805,340     27,822,170     27,742,629     27,527,679  
Liabilities              
Non-interest bearing deposits $ 6,093,430     6,055,069     6,022,980     6,458,394  
Interest bearing deposits   14,008,329     14,372,454     13,906,187     13,549,836  
Securities sold under agreements to repurchase   1,629,504     1,540,008     1,486,850     1,356,862  
FHLB advances   2,350,000     2,140,157          
FRB Bank Term Funding           2,740,000     2,740,000  
Other borrowed funds   88,149     88,814     81,695     75,819  
Subordinated debentures   133,024     132,984     132,943     132,863  
Accrued interest payable   31,000     32,584     125,907     47,742  
Other liabilities   334,459     349,393     225,786     239,637  
Total liabilities   24,667,895     24,711,463     24,722,348     24,601,153  
Commitments and Contingent Liabilities              
Stockholders’ Equity              
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding                
Common stock, $0.01 par value per share, 234,000,000 shares authorized   1,134     1,134     1,109     1,109  
Paid-in capital   2,445,479     2,443,584     2,350,104     2,346,422  
Retained earnings – substantially restricted   1,045,483     1,038,294     1,043,181     1,009,782  
Accumulated other comprehensive loss   (354,651 )   (372,305 )   (374,113 )   (430,787 )
Total stockholders’ equity   3,137,445     3,110,707     3,020,281     2,926,526  
Total liabilities and stockholders’ equity $ 27,805,340     27,822,170     27,742,629     27,527,679  
 
 
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 
  Three Months ended   Six months ended
(Dollars in thousands, except per share data) Jun 30,
2024
  Mar 31,
2024
  Jun 30,
2023
  Jun 30,
2024
  Jun 30,
2023
Interest Income                  
Investment securities $ 42,165     56,218   47,658     98,383   91,300  
Residential real estate loans   21,754     20,764   17,076     42,518   32,914  
Commercial loans   188,326     181,472   164,587     369,798   320,269  
Consumer and other loans   21,589     20,948   18,044     42,537   34,770  
Total interest income   273,834     279,402   247,365     553,236   479,253  
Interest Expense                  
Deposits   67,852     67,196   31,700     135,048   44,245  
Securities sold under agreements to
repurchase
  13,566     12,598   8,607     26,164   13,213  
Federal Home Loan Bank advances   24,179     4,249   3,305     28,428   26,910  
FRB Bank Term Funding       27,097   29,899     27,097   32,931  
Other borrowed funds   353     344   443     697   939  
Subordinated debentures   1,406     1,438   1,431     2,844   2,843  
Total interest expense   107,356     112,922   75,385     220,278   121,081  
Net Interest Income   166,478     166,480   171,980     332,958   358,172  
Provision for credit losses   3,518     8,249   2,773     11,767   8,243  
Net interest income after provision for credit losses   162,960     158,231   169,207     321,191   349,929  
Non-Interest Income                  
Service charges and other fees   19,422     18,563   18,967     37,985   36,738  
Miscellaneous loan fees and charges   4,821     4,362   4,162     9,183   8,129  
Gain on sale of loans   4,669     3,362   3,528     8,031   5,928  
(Loss) gain on sale of securities   (12 )   16   (23 )   4   (137 )
Other income   3,304     3,686   2,445     6,990   6,316  
Total non-interest income   32,204     29,989   29,079     62,193   56,974  
Non-Interest Expense                  
Compensation and employee benefits   84,434     85,789   78,764     170,223   160,241  
Occupancy and equipment   11,594     11,883   10,827     23,477   22,492  
Advertising and promotions   4,362     3,983   3,733     8,345   7,968  
Data processing   9,387     9,159   8,402     18,546   16,511  
Other real estate owned and foreclosed assets   149     25   14     174   26  
Regulatory assessments and insurance   5,393     7,761   5,314     13,154   10,217  
Core deposit intangibles amortization   3,017     2,760   2,427     5,777   4,876  
Other expenses   22,616     30,483   21,123     53,099   43,255  
Total non-interest expense   140,952     151,843   130,604     292,795   265,586  
Income Before Income Taxes   54,212     36,377   67,682     90,589   141,317  
Federal and state income tax expense   9,504     3,750   12,727     13,254   25,151  
Net Income $ 44,708     32,627   54,955     77,335   116,166  
 
 
Glacier Bancorp, Inc.
Average Balance Sheets
 
  Three Months ended
  June 30, 2024   March 31, 2024
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 1,796,787   $ 21,754   4.84 %   $ 1,747,184   $ 20,764   4.75 %
Commercial loans 1   13,740,455     189,939   5.56 %     13,513,426     183,045   5.45 %
Consumer and other loans   1,290,587     21,589   6.73 %     1,283,388     20,948   6.56 %
Total loans 2   16,827,829     233,282   5.58 %     16,543,998     224,757   5.46 %
Tax-exempt debt securities 3   1,707,269     15,111   3.54 %     1,720,370     15,157   3.52 %
Taxable debt securities 4, 5   7,042,885     29,461   1.67 %     8,176,974     43,477   2.13 %
Total earning assets   25,577,983     277,854   4.37 %     26,441,342     283,391   4.31 %
Goodwill and intangibles   1,068,250             1,051,954        
Non-earning assets   754,491             611,550        
Total assets $ 27,400,724           $ 28,104,846        
Liabilities                      
Non-interest bearing deposits $ 6,026,709   $   %   $ 5,966,546   $   %
NOW and DDA accounts   5,221,883     15,728   1.21 %     5,275,703     15,918   1.21 %
Savings accounts   2,914,538     6,014   0.83 %     2,900,649     5,655   0.78 %
Money market deposit accounts   2,904,438     14,467   2.00 %     2,948,294     14,393   1.96 %
Certificate accounts   3,037,638     31,593   4.18 %     3,000,713     31,175   4.18 %
Total core deposits   20,105,206     67,802   1.36 %     20,091,905     67,141   1.34 %
Wholesale deposits 6   3,726     50   5.50 %     3,965     55   5.50 %
Repurchase agreements   1,597,887     13,566   3.41 %     1,513,397     12,598   3.35 %
FHLB advances   2,007,747     24,179   4.76 %     350,754     4,249   4.79 %
FRB Bank Term Funding         %     2,483,077     27,097   4.39 %
Subordinated debentures and other borrowed funds   224,778     1,759   3.15 %     218,271     1,782   3.28 %
Total funding liabilities   23,939,344     107,356   1.80 %     24,661,369     112,922   1.84 %
Other liabilities   344,105             356,554        
Total liabilities   24,283,449             25,017,923        
Stockholders’ Equity                      
Stockholders’ equity   3,117,275             3,086,923        
Total liabilities and stockholders’ equity $ 27,400,724           $ 28,104,846        
Net interest income (tax-equivalent)     $ 170,498           $ 170,469    
Net interest spread (tax-equivalent)         2.57 %           2.47 %
Net interest margin (tax-equivalent)         2.68 %           2.59 %
 

______________________________

1 Includes tax effect of $1.6 million and $1.6 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2024 and March 31, 2024, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $2.2 million and $2.2 million on tax-exempt debt securities income for the three months ended June 30, 2024 and March 31, 2024, respectively.
4 Includes interest income of $1.9 million and $15.3 million on average interest-bearing cash balances of $143.0 million and $1.12 billion for the three months ended June 30, 2024 and March 31, 2024, respectively.
5 Includes tax effect of $211 thousand and $215 thousand on federal income tax credits for the three months ended June 30, 2024 and March 31, 2024, respectively.
6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
 
Glacier Bancorp, Inc.
Average Balance Sheets (continued)
 
  Three Months ended
  June 30, 2024   June 30, 2023
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 1,796,787   $ 21,754   4.84 %   $ 1,567,136   $ 17,076   4.36 %
Commercial loans 1   13,740,455     189,939   5.56 %     12,950,934     165,874   5.14 %
Consumer and other loans   1,290,587     21,589   6.73 %     1,236,763     18,044   5.85 %
Total loans 2   16,827,829     233,282   5.58 %     15,754,833     200,994   5.12 %
Tax-exempt debt securities 3   1,707,269     15,111   3.54 %     1,743,852     14,462   3.32 %
Taxable debt securities 4, 5   7,042,885     29,461   1.67 %     8,177,551     35,202   1.72 %
Total earning assets   25,577,983     277,854   4.37 %     25,676,236     250,658   3.92 %
Goodwill and intangibles   1,068,250             1,023,291        
Non-earning assets   754,491             523,349        
Total assets $ 27,400,724           $ 27,222,876        
Liabilities                      
Non-interest bearing deposits $ 6,026,709   $   %   $ 6,584,082   $   %
NOW and DDA accounts   5,221,883     15,728   1.21 %     5,108,421     7,429   0.58 %
Savings accounts   2,914,538     6,014   0.83 %     2,846,015     1,064   0.15 %
Money market deposit accounts   2,904,438     14,467   2.00 %     3,256,007     10,174   1.25 %
Certificate accounts   3,037,638     31,593   4.18 %     1,451,218     8,878   2.45 %
Total core deposits   20,105,206     67,802   1.36 %     19,245,743     27,545   0.57 %
Wholesale deposits 6   3,726     50   5.50 %     330,655     4,155   5.04 %
Repurchase agreements   1,597,887     13,566   3.41 %     1,273,045     8,607   2.71 %
FHLB advances   2,007,747     24,179   4.76 %     245,055     3,305   5.33 %
FRB Bank Term Funding         %     2,740,000     29,899   4.38 %
Subordinated debentures and other borrowed funds   224,778     1,759   3.15 %     208,804     1,874   3.60 %
Total funding liabilities   23,939,344     107,356   1.80 %     24,043,302     75,385   1.26 %
Other liabilities   344,105             247,319        
Total liabilities   24,283,449             24,290,621        
Stockholders’ Equity                      
Stockholders’ equity   3,117,275             2,932,255        
Total liabilities and stockholders’ equity $ 27,400,724           $ 27,222,876        
Net interest income (tax-equivalent)     $ 170,498           $ 175,273    
Net interest spread (tax-equivalent)         2.57 %           2.66 %
Net interest margin (tax-equivalent)         2.68 %           2.74 %
 

______________________________

1  Includes tax effect of $1.6 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2024 and 2023, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $2.2 million and $1.8 million on tax-exempt debt securities income for the three months ended June 30, 2024 and 2023, respectively.
4 Includes interest income of $1.9 million and $7.3 million on average interest-bearing cash balances of $143.0 million and $579.0 million for the three months ended June 30, 2024 and 2023, respectively.
5 Includes tax effect of $211 thousand and $214 thousand on federal income tax credits for the three months ended June 30, 2024 and 2023, respectively.
6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.  
 
Glacier Bancorp, Inc.
Average Balance Sheets (continued)
 
  Six Months ended
  June 30, 2024   June 30, 2023
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 1,771,985   $ 42,518   4.80 %   $ 1,530,739   $ 32,914   4.30 %
Commercial loans 1   13,626,941     372,984   5.50 %     12,804,058     323,330   5.09 %
Consumer and other loans   1,286,988     42,537   6.65 %     1,222,121     34,770   5.74 %
Total loans 2   16,685,914     458,039   5.52 %     15,556,918     391,014   5.07 %
Tax-exempt debt securities 3   1,713,819     30,268   3.53 %     1,752,644     30,492   3.48 %
Taxable debt securities 4, 5   7,609,930     72,938   1.92 %     8,115,452     66,286   1.63 %
Total earning assets   26,009,663     561,245   4.34 %     25,425,014     487,792   3.87 %
Goodwill and intangibles   1,060,102             1,024,497        
Non-earning assets   683,020             501,278        
Total assets $ 27,752,785           $ 26,950,789        
Liabilities                      
Non-interest bearing deposits $ 5,996,627   $   %   $ 6,927,248   $   %
NOW and DDA accounts   5,248,793     31,646   1.21 %     5,094,376     9,700   0.38 %
Savings accounts   2,907,594     11,669   0.81 %     2,976,065     1,578   0.11 %
Money market deposit accounts   2,926,366     28,860   1.98 %     3,361,892     16,008   0.96 %
Certificate accounts   3,019,176     62,768   4.18 %     1,219,282     11,462   1.90 %
Total core deposits   20,098,556     134,943   1.35 %     19,578,863     38,748   0.40 %
Wholesale deposits 6   3,846     105   5.50 %     226,142     5,497   4.90 %
Repurchase agreements   1,555,642     26,164   3.38 %     1,154,970     13,213   2.31 %
FHLB advances   1,179,251     28,428   4.77 %     1,113,122     26,910   4.81 %
FRB Bank Term Funding   1,241,538     27,097   4.39 %     1,517,265     32,931   4.38 %
Subordinated debentures and other borrowed funds   221,525     3,541   3.21 %     209,174     3,782   3.65 %
Total funding liabilities   24,300,358     220,278   1.82 %     23,799,536     121,081   1.03 %
Other liabilities   350,329             232,365        
Total liabilities   24,650,687             24,031,901        
Stockholders’ Equity                      
Stockholders’ equity   3,102,098             2,918,888        
Total liabilities and stockholders’ equity $ 27,752,785           $ 26,950,789        
Net interest income (tax-equivalent)     $ 340,967           $ 366,711    
Net interest spread (tax-equivalent)         2.52 %           2.84 %
Net interest margin (tax-equivalent)         2.64 %           2.91 %
 

______________________________

1 Includes tax effect of $3.2 million and $3.1 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2024 and 2023, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $4.4 million and $5.0 million on tax-exempt debt securities income for the six months ended June 30, 2024 and 2023, respectively.
4 Includes interest income of $17.2 million and $9.4 million on average interest-bearing cash balances of $631.7 million and $379.0 million for the six months ended June 30, 2024 and 2023, respectively.
5 Includes tax effect of $426 thousand and $429 thousand on federal income tax credits for the six months ended June 30, 2024 and 2023, respectively.
6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

 

 
Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
 
  Loans Receivable, by Loan Type   % Change from
(Dollars in thousands) Jun 30,
2024
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
Custom and owner occupied construction $ 233,978     $ 273,835     $ 290,572     $ 315,651     (15 )%   (19 )%   (26 )%
Pre-sold and spec construction   198,219       223,294       236,596       306,440     (11 )%   (16 )%   (35 )%
Total residential construction   432,197       497,129       527,168       622,091     (13 )%   (18 )%   (31 )%
Land development   209,794       215,828       232,966       238,897     (3 )%   (10 )%   (12 )%
Consumer land or lots   190,781       188,635       187,545       182,251     1  %   2  %   5  %
Unimproved land   108,763       103,032       87,739       91,157     6  %   24  %   19  %
Developed lots for operative builders   57,140       47,591       56,142       65,134     20  %   2  %   (12 )%
Commercial lots   99,036       92,748       87,185       94,334     7  %   14  %   5  %
Other construction   810,536       915,782       900,547       1,039,192     (11 )%   (10 )%   (22 )%
Total land, lot, and other construction   1,476,050       1,563,616       1,552,124       1,710,965     (6 )%   (5 )%   (14 )%
Owner occupied   3,087,814       3,057,348       3,035,768       2,934,724     1  %   2  %   5  %
Non-owner occupied   3,941,786       3,920,696       3,742,916       3,714,531     1  %   5  %   6  %
Total commercial real estate   7,029,600       6,978,044       6,778,684       6,649,255     1  %   4  %   6  %
Commercial and industrial   1,400,896       1,371,201       1,363,479       1,370,393     2  %   3  %   2  %
Agriculture   962,384       929,420       772,458       770,378     4  %   25  %   25  %
1st lien   2,353,912       2,276,638       2,127,989       1,956,205     3  %   11  %   20  %
Junior lien   56,049       51,579       47,230       46,616     9  %   19  %   20  %
Total 1-4 family   2,409,961       2,328,217       2,175,219       2,002,821     4  %   11  %   20  %
Multifamily residential   1,027,962       881,117       796,538       664,859     17  %   29  %   55  %
Home equity lines of credit   974,000       947,652       979,891       940,048     3  %   (1 )%   4  %
Other consumer   220,755       223,566       229,154       231,519     (1 )%   (4 )%   (5 )%
Total consumer   1,194,755       1,171,218       1,209,045       1,171,567     2  %   (1 )%   2  %
States and political subdivisions   777,426       848,454       834,947       812,688     (8 )%   (7 )%   (4 )%
Other   180,505       191,121       204,111       214,951     (6 )%   (12 )%   (16 )%
Total loans receivable, including
loans held for sale
  16,891,736       16,759,537       16,213,773       15,989,968     1  %   4  %   6  %
Less loans held for sale 1   (39,745 )     (27,035 )     (15,691 )     (35,006 )   47  %   153  %   14  %
Total loans receivable $ 16,851,991     $ 16,732,502     $ 16,198,082     $ 15,954,962     1  %   4  %   6  %
 

______________________________

1 Loans held for sale are primarily 1st lien 1-4 family loans.
 
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification
 
 

Non-performing Assets, by Loan Type

  Non-
Accrual
Loans
  Accruing
Loans 90
Days
or More Past
Due
  Other real
estate owned
and
foreclosed
assets
(Dollars in thousands) Jun 30,
2024
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
  Jun 30,
2024
  Jun 30,
2024
  Jun 30,
2024
Custom and owner occupied construction $ 206   210   214   219   206    
Pre-sold and spec construction   2,908   1,049   763   1,548   2,145   763  
Total residential construction   3,114   1,259   977   1,767   2,351   763  
Land development     28   35   118      
Consumer land or lots   429   144   96   239   201   228  
Unimproved land         43      
Developed lots for operative builders   608   608   608   608     608  
Commercial lots   47   2,205   47   188     47  
Other construction   25       12,884   25    
Total land, lot and other construction   1,109   2,985   786   14,080   226   883  
Owner occupied   1,992   1,501   1,838   2,251   999   561   432
Non-owner occupied   257   8,853   11,016   4,450     257  
Total commercial real estate   2,249   10,354   12,854   6,701   999   818   432
Commercial and Industrial   2,044   1,698   1,971   1,339   1,297   747  
Agriculture   2,442   2,855   2,558   2,564   2,396   46  
1st lien   2,923   2,930   2,664   2,794   2,217   706  
Junior lien   492   69   180   273   353   139  
Total 1-4 family   3,415   2,999   2,844   3,067   2,570   845  
Multifamily residential   385   395   395     385    
Home equity lines of credit   2,145   1,892   2,043   1,256   1,770   375  
Other consumer   1,089   927   1,187   1,116   692   199   198
Total consumer   3,234   2,819   3,230   2,372   2,462   574   198
Other   16   61   16   132     16  
Total $ 18,008   25,425   25,631   32,022   12,686   4,692   630
 
 
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
 
  Accruing 30-89 Days Delinquent Loans,  by Loan Type   % Change from
(Dollars in thousands) Jun 30,
2024
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
Custom and owner occupied construction $ 1,323   $ 4,784   $ 2,549   $ 324   (72 )%   (48 )%   308  %
Pre-sold and spec construction   816     1,181     1,219     129   (31 )%   (33 )%   533  %
Total residential construction   2,139     5,965     3,768     453   (64  )%   (43 )%   372  %
Land development       59     163     244   (100 )%   (100 )%   (100 )%
Consumer land or lots   411     332     624     565   24  %   (34 )%   (27 )%
Unimproved land   158     575           (73 )%   n/m   n/m
Commercial lots       1,225     2,159     3,404   (100 )%   (100 )%   (100 )%
Other construction   21     1,248         1,114   (98 )%   n/m   (98 )%
Total land, lot and other construction   590     3,439     2,946     5,327   (83 )%   (80 )%   (89 )%
Owner occupied   4,326     2,991     2,222     1,053   45  %   95  %   311  %
Non-owner occupied   8,119     18,118     14,471     8,595   (55 )%   (44 )%   (6 )%
Total commercial real estate   12,445     21,109     16,693     9,648   (41 )%   (25 )%   29  %
Commercial and industrial   17,591     14,806     12,905     2,096   19  %   36  %   739  %
Agriculture   5,288     3,922     594     871   35  %   790  %   507  %
1st lien   2,637     5,626     3,768     1,115   (53 )%   (30 )%   137  %
Junior lien   17     145     1     385   (88 )%   1,600  %   (96 )%
Total 1-4 family   2,654     5,771     3,769     1,500   (54 )%   (30 )%   77  %
Home equity lines of credit   5,432     3,668     4,518     2,021   48  %   20  %   169  %
Other consumer   2,192     1,948     3,264     1,714   13  %   (33 )%   28  %
Total consumer   7,624     5,616     7,782     3,735   36  %   (2 )%   104  %
Other   1,347     1,795     1,510     1,233   (25 )%   (11 )%   9  %
Total $ 49,678   $ 62,423   $ 49,967   $ 24,863   (20 )%   (1 )%   100  %
 

______________________________

n/m – not measurable

 
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
 
  Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan Type
  Charge-Offs   Recoveries
(Dollars in thousands) Jun 30,
2024
  Mar 31,
2024
  Dec 31,
2023
  Jun 30,
2023
  Jun 30,
2024
  Jun 30,
2024
Pre-sold and spec construction   (4 )   (4 )   (15 )   (8 )     4
Total residential construction   (4 )   (4 )   (15 )   (8 )     4
Land development   (1 )   (1 )   (135 )   (132 )     1
Consumer land or lots   (22 )   (1 )   (19 )   (14 )     22
Unimproved land   5                 5  
Commercial lots   319                 319  
Other construction           889          
Total land, lot and other construction   301     (2 )   735     (146 )   324   23
Owner occupied   (73 )   (3 )   (59 )   (76 )     73
Non-owner occupied   (2 )   (1 )   799     299       2
Total commercial real estate   (75 )   (4 )   740     223       75
Commercial and industrial   644     328     364     (18 )   1,149   505
Agriculture   68     68             68  
1st lien   (22 )   (4 )   66     101       22
Junior lien   (55 )   (5 )   24     38     10   65
Total 1-4 family   (77 )   (9 )   90     139     10   87
Multifamily residential           (136 )        
Home equity lines of credit   1     5     (6 )   56     15   14
Other consumer   493     251     1,097     401     709   216
Total consumer   494     256     1,091     457     724   230
Other   4,611     2,439     7,447     3,765     6,155   1,544
Total $ 5,962     3,072     10,316     4,412     8,430   2,468
 

Visit our website at www.glacierbancorp.com

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


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