Glacier Bancorp, Inc. Announces Results for the Quarter Ended December 31, 2019

4th Quarter 2019 Highlights:

• Net income of $57.4 million for the current quarter, an increase of $7.8 million, or 16 percent, over the prior year fourth quarter net income of $49.6 million.
• Current quarter diluted earnings per share of $0.62, an increase of 5 percent from the prior year fourth quarter diluted earnings per share of $0.59. 
• Net interest margin of 4.45 percent increased 3 basis points compared to 4.42 percent in the prior quarter and increased 15 basis points over the prior year fourth quarter net interest margin of 4.30 percent.
• Interest bearing deposits increased $65 million, or 4 percent annualized, during the current quarter.
• Non-performing assets of $37.4 million, decreased $17.7 million, or 32 percent, from the prior quarter non-performing assets of $55.1 million.
• Declared a special dividend of $0.20 per share.  This was the 16th special dividend the Company has declared.
• Declared and paid a regular dividend of $0.29 per share.  The Company has declared 139 consecutive quarterly dividends and has increased the dividend 45 times.

Year 2019 Highlights:

• Net income of $211 million for 2019, an increase of $28.7 million, or 16 percent, over the prior year net income of $182 million.
• Diluted earnings per share of $2.38, an increase of 10 percent from the prior year diluted earnings per share of $2.17.
• Net interest margin of 4.39 percent for 2019, an increase of 18 basis points from the net interest margin of 4.21 percent in 2018.
• Core deposits organically grew $401 million, or 4 percent, during 2019, including non-interest bearing deposit growth of $305 million, or 10 percent.
• Organic loan growth was $364 million, or 4 percent for 2019.
• Regular quarterly dividends declared of $1.11 per share, an increase of $0.10 per share, or 10 percent, over the prior year regular quarterly dividends of $1.01.
• The Company announced the signing of a definitive agreement to acquire State Bank Corp., the parent company of State Bank of Arizona, a community bank based in Lake Havasu City, Arizona with total assets of $678 million at December 31, 2019 which will significantly enhance its Arizona franchise.
• The Company entered Nevada by completing the acquisition of Heritage Bancorp, the parent company of Heritage Bank of Nevada (collectively, "Heritage"), a community bank based in Reno, Nevada, with total assets of $978 million.
• The Company completed the acquisition of FNB Bancorp, the holding company for The First National Bank of Layton (collectively, "FNB"), a community bank based in Layton, Utah, with total assets of $379 million. 

Financial Highlights 

	At or for the Three Months ended																At or for the Year ended
(Dollars in thousands, except per share and market data)	Dec 31, 2019				Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2018
Operating results
Net income	$	57,410			51,610			52,392			49,132			49,599			210,544			181,878
Basic earnings per share	$	0.62			0.57			0.61			0.58			0.59			2.39			2.18
Diluted earnings per share	$	0.62			0.57			0.61			0.58			0.59			2.38			2.17
Dividends declared per share	$	0.49			0.29			0.27			0.26			0.56			1.31			1.31
Market value per share
Closing	$	45.99			40.46			40.55			40.07			39.62			45.99			39.62
High	$	46.51			42.61			43.44			45.47			47.67			46.51			47.67
Low	$	38.99			37.70			38.65			37.58			36.84			37.58			35.77
Selected ratios and other data
Number of common stock shares outstanding	92,289,750				92,180,618			86,637,394			84,588,199			84,521,692			92,289,750			84,521,692
Average outstanding shares - basic	92,243,133				90,294,811			85,826,290			84,549,974			84,521,640			88,255,290			83,603,515
Average outstanding shares - diluted	92,365,021				90,449,195			85,858,286			84,614,248			84,610,018			88,385,775			83,677,185
Return on average assets (annualized)	1.67		%		1.55	%		1.69	%		1.67	%		1.66	%		1.64	%		1.59	%
Return on average equity (annualized)	11.61		%		10.92	%		12.82	%		13.02	%		13.08	%		12.01	%		12.56	%
Efficiency ratio	54.90		%		65.95	%		54.50	%		55.37	%		53.93	%		57.78	%		54.73	%
Dividend payout ratio	79.03		%		50.88	%		44.26	%		44.83	%		94.92	%		54.81	%		60.09	%
Loan to deposit ratio	88.92		%		88.71	%		90.27	%		87.14	%		87.64	%		88.92	%		87.64	%
Number of full time equivalent employees	2,826				2,802			2,703			2,634			2,623			2,826			2,623
Number of locations	181				182			175			169			167			181			167
Number of ATMs	248				238			228			222			216			248			216

______________________________

¹ Includes a special dividend declared of $0.20 and $0.30 per share for the three months ended December 31, 2019 and December 31, 2018 and for the years ended December 31, 2019 and 2018.

KALISPELL, Mont., Jan. 23, 2020 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $57.4 million for the current quarter, an increase of $7.8 million, or 16 percent, from the $49.6 million of net income for the prior year fourth quarter.  Diluted earnings per share for the current quarter was $0.62 per share, an increase of 5 percent from the prior year fourth quarter diluted earnings per share of $0.59.  Included in the current quarter was acquisition-related expenses of $4.4 million and a $1.3 million reduction in regulatory assessment and insurance expense from Small Bank Assessment credits applied by the FDIC.  “These results represent a strong close to a great year.  We are especially pleased to see the substantial improvement in credit this quarter and a business that continues to withstand market headwinds.  The Company's growth and performance for the quarter and the full year was well balanced across all of our key operating metrics,” said Randy Chesler, President and Chief Executive Officer.  “Our Company has grown stronger during 2019, both organically and with the addition of Heritage Bank in Nevada and First Community Bank in Utah.  With this foundation, we believe the Glacier team is set to have another strong year in 2020.”

Net income for 2019 was $211 million, an increase of $28.7 million, or 16 percent, from the $182 million of net income for the prior year.  Diluted earnings per share for the current year was $2.38 per share, an increase of $0.21, or 10 percent, from the diluted earnings per share of $2.17 for the same period in the prior year.

In September of 2019, the Company announced the signing of a definitive agreement to acquire State Bank Corp., the parent company of State Bank of Arizona, a community bank based in Lake Havasu City, Arizona (collectively, "SBAZ").  SBAZ provides banking services to individuals and businesses in Arizona with ten banking offices located in Bullhead City, Cottonwood, Kingman, Lake Havasu City, Phoenix, Prescott Valley and Prescott.  As of December 31, 2019, SBAZ had total assets of $678 million, gross loans of $439 million and total deposits of $587 million.  The acquisition has received regulatory approvals, is subject to other customary conditions of closing and is expected to be completed in the first quarter of 2020.  Upon closing of the transaction, SBAZ will merge into the Company's Foothills Bank division and will expand the Company's footprint in Arizona to cover all major markets in the state and be a leading community bank in Arizona.

On July 31, 2019, the Company completed the acquisition of Heritage Bancorp, the bank holding company for Heritage Bank of Nevada, a community bank based in Reno, Nevada (collectively, “Heritage”).  Upon closing of the transaction, Heritage became the Company’s sixteenth Bank division.  This acquisition also marks the Company's first entrance into the state of Nevada.

On April 30, 2019, the Company completed the acquisition of FNB Bancorp, the holding company for The First National Bank of Layton, a community bank based in Layton, Utah (“FNB”).  Upon closing of the transaction, FNB became First Community Bank Utah, the Company’s first division in Utah and the fifteenth Bank division.  In October, the Company combined its four existing Utah-based branches into First Community Bank Utah, enhancing the Company's growth prospects in one of the fastest growing markets in the United States.

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

	Heritage			FNB
(Dollars in thousands)	July 31, 2019			April 30, 2019				Total
Total assets	977,944			$	379,155			1,357,099
Debt securities	103,231			47,247				150,478
Loans receivable	615,279			245,485				860,764
Non-interest bearing deposits	296,393			93,647				390,040
Interest bearing deposits	425,827			180,999				606,826
Borrowings	—			7,273				7,273

Asset Summary

														$ Change from
(Dollars in thousands)	Dec 31, 2019					Sep 30, 2019				Dec 31, 2018				Sep 30, 2019				Dec 31, 2018
Cash and cash equivalents	$	330,961				406,384				203,790				(75,423	)			127,171
Debt securities, available-for-sale	2,575,252					2,459,036				2,571,663				116,216				3,589
Debt securities, held-to-maturity	224,611					234,992				297,915				(10,381	)			(73,304	)
Total debt securities	2,799,863					2,694,028				2,869,578				105,835				(69,715	)
Loans receivable
Residential real estate	926,388					936,877				887,742				(10,489	)			38,646
Commercial real estate	5,579,307					5,548,174				4,657,561				31,133				921,746
Other commercial	2,094,254					2,145,257				1,911,171				(51,003	)			183,083
Home equity	617,201					615,781				544,688				1,420				72,513
Other consumer	295,660					294,999				286,387				661				9,273
Loans receivable	9,512,810					9,541,088				8,287,549				(28,278	)			1,225,261
Allowance for loan and lease losses	(124,490		)			(125,535	)			(131,239	)			1,045				6,749
Loans receivable, net	9,388,320					9,415,553				8,156,310				(27,233	)			1,232,010
Other assets	1,164,855					1,202,827				885,806				(37,972	)			279,049
Total assets	$	13,683,999				13,718,792				12,115,484				(34,793	)			1,568,515

Total debt securities of $2.800 billion at December 31, 2019 increased $106 million, or 4 percent, during the current quarter and decreased $69.7 million, or 2 percent, from the prior year.  Debt securities represented 20 percent of total assets at December 31, 2019 compared to 24 percent of total assets at December 31, 2018.  The level of debt securities will continue to fluctuate as necessary to supplement liquidity needs of the Company. 

The loan portfolio of $9.513 billion decreased $28.3 million, or 30 basis points, during the current quarter primarily as a result of seasonality and a few isolated loan payoffs.  Excluding the FNB and Heritage acquisitions, the loan portfolio increased $364 million, or 4 percent, since December 31, 2018, with the largest increase in commercial real estate loans, which increased $195 million, or 4 percent.

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.

Credit Quality Summary

	At or for the Year ended				At or for the Nine Months ended			At or for the Year ended
(Dollars in thousands)	Dec 31, 2019				Sep 30, 2019			Dec 31, 2018
Allowance for loan and lease losses
Balance at beginning of period	$	131,239			131,239			129,568
Provision for loan losses	57				57			9,953
Charge-offs	(15,178		)		(12,090	)		(17,807	)
Recoveries	8,372				6,329			9,525
Balance at end of period	$	124,490			125,535			131,239
Other real estate owned	$	5,142			7,148			7,480
Accruing loans 90 days or more past due	1,412				7,912			2,018
Non-accrual loans	30,883				40,017			47,252
Total non-performing assets	$	37,437			55,077			56,750
Non-performing assets as a percentage of subsidiary assets	0.27		%		0.40	%		0.47	%
Allowance for loan and lease losses as a percentage of non-performing loans	385		%		262	%		266	%
Allowance for loan and lease losses as a percentage of total loans	1.31		%		1.32	%		1.58	%
Net charge-offs as a percentage of total loans	0.07		%		0.06	%		0.10	%
Accruing loans 30-89 days past due	$	23,192			29,954			33,567
Accruing troubled debt restructurings	$	34,055			32,949			25,833
Non-accrual troubled debt restructurings	$	3,346			6,723			10,660
U.S. government guarantees included in non-performing assets	$	1,786			3,000			4,811

The Company experienced another successful quarter in reducing non-performing assets as the Bank divisions continued to focus on resolving outstanding credit issues.  Non-performing assets of $37.4 million at December 31, 2019 decreased $17.6 million, or 32 percent, over the prior quarter and decreased $19.3 million, or 34 percent, over the prior year end.  Non-performing assets as a percentage of subsidiary assets at December 31, 2019 was 0.27 percent, a decrease of 13 basis point from the prior quarter, and a decrease of 20 basis points from the prior year fourth quarter.  Early stage delinquencies (accruing loans 30-89 days past due) of $23.2 million at December 31, 2019 decreased $6.8 million from the prior quarter and decreased $10.4 million from the prior year end.  Early stage delinquencies as a percentage of loans at December 31, 2019 was 0.24 percent, which was a decrease of 7 basis points from prior quarter and a 17 basis points decrease from prior year end. 

The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at December 31, 2019 was 1.31 percent, which was a 1 basis point decrease compared to the prior quarter and a decrease of 27 basis points from a year ago.  The decrease from prior year end was attributable to stabilizing credit quality and the addition of loans from the acquisitions which were added to the portfolio on a fair value basis and as a result did not require an allowance at acquisition date.

Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands)	Provision for Loan Losses				Net Charge-Offs				ALLL as a Percent of Loans			Accruing Loans 30-89 Days Past Due as a Percent of Loans			Non-Performing Assets to Total Subsidiary Assets
Fourth quarter 2019	$	—			$	1,045			1.31	%		0.24	%		0.27	%
Third quarter 2019	—				3,519				1.32	%		0.31	%		0.40	%
Second quarter 2019	—				732				1.46	%		0.43	%		0.41	%
First quarter 2019	57				1,510				1.56	%		0.44	%		0.42	%
Fourth quarter 2018	1,246				2,542				1.58	%		0.41	%		0.47	%
Third quarter 2018	3,194				2,223				1.63	%		0.31	%		0.61	%
Second quarter 2018	4,718				762				1.66	%		0.50	%		0.71	%
First quarter 2018	795				2,755				1.66	%		0.59	%		0.64	%

Net charge-offs for the current quarter were $1.0 million compared to $3.5 million for the prior quarter and $2.5 million from the same quarter last year.  There was no current or prior quarter provision for loan losses compared to $1.2 million in the prior year fourth quarter.  Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of the loan loss provision. 

Liability Summary

											$ Change from
(Dollars in thousands)	Dec 31, 2019				Sep 30, 2019			Dec 31, 2018			Sep 30, 2019				Dec 31, 2018
Deposits
Non-interest bearing deposits	$	3,696,627			3,772,766			3,001,178			(76,139	)			695,449
NOW and DDA accounts	2,645,404				2,592,483			2,391,307			52,921				254,097
Savings accounts	1,485,487				1,472,465			1,346,790			13,022				138,697
Money market deposit accounts	1,937,141				1,940,517			1,684,284			(3,376	)			252,857
Certificate accounts	958,501				955,765			901,484			2,736				57,017
Core deposits, total	10,723,160				10,733,996			9,325,043			(10,836	)			1,398,117
Wholesale deposits	53,297				134,629			168,724			(81,332	)			(115,427	)
Deposits, total	10,776,457				10,868,625			9,493,767			(92,168	)			1,282,690
Repurchase agreements	569,824				558,752			396,151			11,072				173,673
Federal Home Loan Bank advances	38,611				8,707			440,175			29,904				(401,564	)
Other borrowed funds	28,820				14,808			14,708			14,012				14,112
Subordinated debentures	139,914				139,913			134,051			1				5,863
Other liabilities	169,640				174,586			120,778			(4,946	)			48,862
Total liabilities	$	11,723,266			11,765,391			10,599,630			(42,125	)			1,123,636

Core deposits of $10.723 billion as of December 31, 2019 decreased $10.8 million or 10 basis points, from the prior quarter with the decrease primarily attributable to the $76 million, or 2 percent, seasonal reduction in non-interest bearing deposits.  Excluding acquisitions, core deposits increased $401 million, or 4 percent, from prior year end with non-interest bearing deposits increasing $305 million, or 10 percent.  Non-interest bearing deposits were 34 percent of total core deposits at current year end, an increase of 2 percent from 32 percent of total core deposits at the prior year end.

Wholesale deposits of $53.3 million at December 31, 2019 decreased $81.3 million from prior quarter and decreased $115 million from the prior year end.  FHLB advances of $38.6 million at December 31, 2019 increased $29.9 million from prior quarter and decreased $402 million from the prior year end.  As a result of the prior quarter's balance sheet strategy, the Company reduced its overall wholesale funding during 2019.  The balance sheet strategy included early termination of the Company's $260 million notional pay-fixed interest rate swaps and corresponding debt.  Wholesale deposits and FHLB advances will continue to fluctuate as necessary for balance sheet growth and to supplement liquidity needs of the Company.

Stockholders’ Equity Summary

											$ Change from
(Dollars in thousands, except per share data)	Dec 31, 2019				Sep 30, 2019			Dec 31, 2018			Sep 30, 2019			Dec 31, 2018
Common equity	$	1,920,507			1,905,306			1,525,281			15,201			395,226
Accumulated other comprehensive income (loss)	40,226				48,095			(9,427	)		(7,869	)		49,653
Total stockholders’ equity	1,960,733				1,953,401			1,515,854			7,332			444,879
Goodwill and core deposit intangible, net	(519,704		)		(522,274	)		(338,828	)		2,570			(180,876	)
Tangible stockholders’ equity	$	1,441,029			1,431,127			1,177,026			9,902			264,003
Stockholders’ equity to total assets	14.33		%		14.24	%		12.51	%
Tangible stockholders’ equity to total tangible assets	10.95		%		10.84	%		9.99 	%
Book value per common share	$	21.25			21.19			17.93			0.06			3.32
Tangible book value per common share	$	15.61			15.53			13.93			0.08			1.68

Tangible stockholders’ equity of $1.441 billion at December 31, 2019 increased $9.9 million, or 70 basis points, compared to the prior quarter which was driven by earnings retention.  Tangible stockholders’ equity increased $264 million, or 22 percent, over the prior year end which was primarily the result of earnings retention, an increase in other comprehensive income, and the result of $317 million of Company stock issued for current year acquisitions.  Tangible book value per common share of $15.61 at current quarter end increased $0.08 per share from the prior quarter and increased $1.68 per share from a year ago.

Cash Dividends
On December 30, 2019, the Company’s Board of Directors declared a special cash dividend of $0.20 per share, the 16th special dividend the Company has declared.  The special dividend was payable January 16, 2020 to shareholders of record on January 7, 2020.  On November 13, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.29 per share.  The regular quarterly dividend was payable December 19, 2019 to shareholders of record on December 10, 2019. The Company has declared 139 consecutive quarterly dividends.  Regular quarterly dividends for 2019 were $1.11 per share, an increase of $0.10 per share, or 10 percent, compared to prior year quarterly dividends of $1.01 per share.  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 December 31, 2019 
Compared to September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018

Income Summary

	Three Months ended
(Dollars in thousands)	Dec 31, 2019				Sep 30, 2019				Jun 30, 2019			Mar 31, 2019			Dec 31, 2018
Net interest income
Interest income	$	145,281			142,395				132,385			126,116			125,310
Interest expense	8,833				10,947				12,089			10,904			9,436
Total net interest income	136,448				131,448				120,296			115,212			115,874
Non-interest income
Service charges and other fees	14,756				15,138				20,025			18,015			19,708
Miscellaneous loan fees and charges	1,379				1,775				1,192			967			1,278
Gain on sale of loans	10,135				10,369				7,762			5,798			5,639
Gain (loss) on sale of investments	257				13,811				134			213			(357	)
Other income	1,890				1,956				1,721			3,481			2,226
Total non-interest income	28,417				43,049				30,834			28,474			28,494
Total income	$	164,865			174,497				151,130			143,686			144,368
Net interest margin (tax-equivalent)	4.45		%		4.42		%		4.33	%		4.34	%		4.30	%
					$ Change from
(Dollars in thousands)					Sep 30, 2019				Jun 30, 2019			Mar 31, 2019			Dec 31, 2018
Net interest income
Interest income					$	2,886			12,896			19,165			19,971
Interest expense					(2,114		)		(3,256	)		(2,071	)		(603	)
Total net interest income					5,000				16,152			21,236			20,574
Non-interest income
Service charges and other fees					(382		)		(5,269	)		(3,259	)		(4,952	)
Miscellaneous loan fees and charges					(396		)		187			412			101
Gain on sale of loans					(234		)		2,373			4,337			4,496
Gain (loss) on sale of investments					(13,554		)		123			44			614
Other income					(66		)		169			(1,591	)		(336	)
Total non-interest income					(14,632		)		(2,417	)		(57	)		(77	)
Total income					$	(9,632	)		13,735			21,179			20,497

Net Interest Income
The current quarter net interest income of $136 million increased $5.0 million, or 4 percent, over the prior quarter and increased $20.6 million, or 18 percent, from the prior year fourth quarter.  The current quarter interest income  of $145 million increased $2.9 million, or 2 percent, over the prior quarter and increased $20.0 million, or 16 percent, over prior year fourth quarter and was primarily driven by an increase in interest income on commercial loans.  Interest income on commercial loans increased $3.1 million, or 3 percent, from the prior quarter and increased $18.1 million, or 22 percent, from the prior year fourth quarter.

The current quarter interest expense of $8.8 million decreased $2.1 million, or 19 percent, over the prior quarter and decreased $603 thousand, or 6 percent, over prior year fourth quarter which was driven by the decrease in higher cost FHLB advances and wholesale deposits.  During the current quarter, the total cost of funding (including non-interest bearing deposits) declined 9 basis points to 30 basis points compared to 39 basis points for the prior quarter and 36 basis points for the prior year fourth quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.45 percent compared to 4.42 percent in the prior quarter.  The core net interest margin, excluding  $2.1 million, or 6 basis points, of discount accretion and $2.0 million, or 6 basis points, of non-accrual interest recoveries, was 4.33 percent compared to 4.35 in the prior quarter and 4.25 percent in the prior year fourth quarter.  The Company experienced a 2 basis points decrease in the core net interest margin during the current quarter from decreased yields on loans and investments that more than offset the decrease in the cost of funding from the reduction of FHLB borrowings.  The core net interest margin increased 8 basis points from the prior year fourth quarter primarily the result of increased yields on the loan portfolio and a decrease in funding cost.  “The stable net margin reflects the full quarter benefits of September's balance sheet strategy to improve net interest income by reducing high cost funding and low yield securities,” said Ron Copher, Chief Financial Officer. “In addition, the average balance of non-interest bearing deposits increased in the current quarter and over the entire year.”              

Non-interest Income
Non-interest income for the current quarter totaled $28.4 million which was a decrease of $14.6 million, or 34 percent, over the prior quarter and a decrease of $77 thousand, or 27 basis points, over the same quarter last year.  In the prior quarter as part of the balance sheet strategy, the Company sold $308 million of securities and recognized gain of $13.8 million.  Service charges and other fees of $14.8 million for the current quarter decreased $5.0 million, or 25 percent, from the prior year fourth quarter due to the Company's decrease in interchange fees as a result of the Durbin Amendment.  As of July 1, 2019, the Company became subject to the Durbin Amendment which established limits on the amount of interchange fees that can be charged to merchants for debit card processing. Gain on the sale of loans of $10.1 million for the current quarter increased $4.5 million, or 80 percent, compared to the prior year fourth quarter as a result of increased purchase and refinance activity.

Non-interest Expense Summary

	Three Months ended
(Dollars in thousands)	Dec 31, 2019				Sep 30, 2019				Jun 30, 2019			Mar 31, 2019			Dec 31, 2018
Compensation and employee benefits	$	55,543			62,509				51,973			52,728			50,385
Occupancy and equipment	9,149				8,731				8,180			8,437			7,884
Advertising and promotions	2,747				2,719				2,767			2,388			2,434
Data processing	4,972				4,466				4,062			3,892			3,951
Other real estate owned	609				166				191			139			264
Regulatory assessments and insurance	45				593				1,848			1,285			1,263
Loss on termination of hedging activities	—				13,528				—			—			—
Core deposit intangibles amortization	2,566				2,360				1,865			1,694			1,731
Other expenses	19,621				15,603				15,284			12,267			13,964
Total non-interest expense	$	95,252			110,675				86,170			82,830			81,876
					$ Change from
(Dollars in thousands)					Sep 30, 2019				Jun 30, 2019			Mar 31, 2019			Dec 31, 2018
Compensation and employee benefits					$	(6,966	)		3,570			2,815			5,158
Occupancy and equipment					418				969			712			1,265
Advertising and promotions					28				(20	)		359			313
Data processing					506				910			1,080			1,021
Other real estate owned					443				418			470			345
Regulatory assessments and insurance					(548		)		(1,803	)		(1,240	)		(1,218	)
Loss on termination of hedging activities					(13,528		)		—			—			—
Core deposit intangibles amortization					206				701			872			835
Other expenses					4,018				4,337			7,354			5,657
Total non-interest expense					$	(15,423	)		9,082			12,422			13,376

Total non-interest expense of $95.3 million for the current quarter decreased $15.4 million, or 14 percent, over the prior quarter and increased $13.4 million, or 16 percent, over the prior year fourth quarter.  Compensation and employee benefits decreased by $7.0 million, or 11 percent, from the prior quarter primarily due to the $5.4 million of stock compensation expense related to the accelerated vesting of stock options from the Heritage acquisition in the prior quarter.  Compensation and employee benefits increased $5.2 million, or 10 percent, from the prior year fourth quarter due to an increased number of employees driven by acquisition and organic growth.  Occupancy and equipment expense increased $418 thousand, or 5 percent, over the prior quarter and increased $1.3 million, or 16 percent, over the prior year fourth quarter as a result of the current year acquisitions and general cost increases.  Data processing expense increased $506 thousand, or 11 percent, over the prior quarter and increased $1.0 million, or 26 percent, over the prior year fourth quarter primarily as a result of the current year acquisitions.  Regulatory assessment and insurance decreased $1.2 million, or 96 percent, from the prior year fourth quarter primarily as a result of $1.3 million of Small Bank Assessment credits applied by the FDIC during the current quarter.  The prior quarter loss on termination of hedging activities included a $3.5 million write-off of the remaining unamortized deferred prepayment penalties on FHLB advances and a $10.0 million loss on the termination of pay-fixed interest rate swaps with notional amounts totaling $260 million.  Other expenses of $19.6 million, increased $4.0 million, or 26 percent, from the prior quarter and was primarily driven by an increase in acquisition-related expenses.  Other expenses included acquisition-related expenses of $4.4 million in the current quarter compared to $2.1 million in the prior quarter and $520 thousand in the prior year fourth quarter.

Federal and State Income Tax Expense
Tax expense during the fourth quarter of 2019 was $12.2 million, which was stable compared to the prior quarter and an increase of $556 thousand, or 5 percent, from the prior year fourth quarter.  The effective tax rate in the current quarter was 18 percent which compares to 19 percent in the prior quarter and prior year fourth quarter.

Efficiency Ratio
The current quarter efficiency ratio was 54.90 percent, a 97 basis points increase from the prior year fourth quarter efficiency ratio of 53.93 as a result of increased operating expenses from acquisitions and the Durbin amendment which outpaced the increase in net interest income.

Operating Results for Year Ended December 31, 2019
Compared to December 31, 2018

Income Summary

	Year ended
(Dollars in thousands)	Dec 31, 2019				Dec 31, 2018				$ Change					% Change
Net interest income
Interest income	$	546,177			$	468,996			$	77,181				16	%
Interest expense	42,773				35,531				7,242					20	%
Total net interest income	503,404				433,465				69,939					16	%
Non-interest income
Service charges and other fees	67,934				74,887				(6,953		)			(9	)%
Miscellaneous loan fees and charges	5,313				6,805				(1,492		)			(22	)%
Gain on sale of loans	34,064				27,134				6,930					26	%
Gain (loss) on sale of investments	14,415				(1,113		)		15,528					(1,395	)%
Other income	9,048				11,111				(2,063		)			(19	)%
Total non-interest income	130,774				118,824				11,950					10	%
Total Income	$	634,178			$	552,289			$	81,889				15	%
Net interest margin (tax-equivalent)	4.39		%		4.21		%

Net Interest Income
Net interest income of $503 million for 2019 increased $69.9 million, or 16 percent, from prior year and was primarily attributable to a $64.9 million increase in interest income from commercial loans.  Interest expense of $42.8 million for 2019 increased $7.2 million, or 20 percent over the prior year as a result of an increase in the amount of deposits and interest rate increases on deposits.  The total funding cost (including non-interest bearing deposits) for 2019 was 39 basis points compared to 36 basis points for 2018.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for 2019 was 4.39 percent, an 18 basis points increase from the net interest margin of 4.21 percent for 2018.  The increase in the margin was principally due to a shift in earning assets to higher yielding loans along with an increase in yields on the loan portfolio and an increase in non-accrual interest recoveries combined with relatively stable cost of funds and an increase low cost deposits.  The current year included $4.4 million in non-accrual interest recoveries compared to $187 thousand in the prior year.

Non-interest Income
Non-interest income of $131 million for 2019 increased $12.0 million, or 10 percent, over the last year which was driven by the sale of debt securities from the balance sheet strategy implemented during the current year.  Service charges and other fees of $67.9 million for 2019 decreased $7.0 million, or 9 percent, from the prior year.  Excluding the impact from the Durbin Amendment, there was an increase in fees during the current year from the increased number of deposit accounts from organic growth and acquisitions.  Gain on the sale of loans of $34.1 million for 2019, increased $6.9 million, or 26 percent, compared to the prior year as a result of increased purchase and refinance activity.  Other income decreased $2.1 million from the prior year and was the result of a gain of $2.3 million on the sale of a former branch building in the prior year third quarter.

Non-interest Expense Summary

	Year ended
(Dollars in thousands)	Dec 31, 2019				Dec 31, 2018				$ Change					% Change
Compensation and employee benefits	$	222,753			$	195,056			$	27,697				14	%
Occupancy and equipment	34,497				30,734				3,763					12	%
Advertising and promotions	10,621				9,566				1,055					11	%
Data processing	17,392				15,911				1,481					9	%
Other real estate owned	1,105				3,221				(2,116		)			(66	)%
Regulatory assessments and insurance	3,771				5,075				(1,304		)			(26	)%
Loss on termination of hedging activities	13,528				—				13,528					n/m
Core deposit intangibles amortization	8,485				6,270				2,215					35	%
Other expenses	62,775				54,294				8,481					16	%
Total non-interest expense	$	374,927			$	320,127			$	54,800				17	%

______________________________

n/m - not measurable

Total non-interest expense of $375 million for 2019 increased $54.8 million, or 17 percent, over the prior year.  Compensation and employee benefits for 2019 increased $27.7 million, or 14 percent, from the prior year due to the increased number of employees from acquisitions and organic growth, a $5.4 million of stock compensation expense related to the Heritage acquisition and annual salary increases.  Occupancy and equipment expense for 2019 increased $3.8 million, or 12 percent from the prior year as a result of increased cost from acquisitions and general cost increases.  Data processing expense increased $1.5 million or 9 percent, over the prior year primarily as a result of increased costs from acquisitions.  Regulatory assessment and insurance decreased $1.3 million, or 26 percent, from the prior year and included $2.5 million of Small Bank Assessment credits applied by the FDIC during the current year.  Other expenses of $62.8 million in the current year, increased $8.5 million, or 16 percent, from the prior year and was primarily driven an increase in acquisition-related expenses, increased costs from acquisitions and general cost increases.  Other expenses included acquisition-related expenses of $8.5 million in 2019 compared to $6.6 million in the prior year.

Provision for Loan Losses
The provision for loan losses was $57 thousand for 2019, a decrease of $9.9 million from prior year.  Net charge-offs during the 2019 were $6.8 million compared to $8.3 million during 2018.

Federal and State Income Tax Expense
Tax expense of $48.7 million in 2019 increased $8.3 million, or 21 percent, over the prior year.  The effective tax rate in 2019 was 19 percent compared to 18 percent in the prior year.

Efficiency Ratio
The efficiency ratio for the year ended December 31, 2019 was 57.78 percent.  Excluding the $10.0 million loss recognized on the termination of the interest rate swaps, the $3.5 million write-off of the remaining unamortized deferred prepayment penalties on FHLB advances, and the $5.4 million of accelerated stock compensation expense, the efficiency ratio would have been 54.79 percent, which was an increase of 6 basis points from the efficiency ratio of 54.73 percent for 2018.  The increase in the efficiency ratio was driven by the decrease in interchange fees from the Durbin Amendment that outpaced the increase in net interest income.

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

• the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio;
• changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability;
• changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties;
• legislative or regulatory changes, including increased banking and consumer protection regulation that adversely affect the Company’s business, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
• ability to complete pending or prospective future acquisitions;
• costs or difficulties related to the completion and integration of acquisitions;
• the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
• reduced demand for banking products and services;
• the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
• competition among financial institutions in the Company's markets may increase significantly;
• the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
• the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
• consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
• dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
• material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
• natural disasters, including fires, floods, earthquakes, and other unexpected events;
• the Company’s success in managing risks involved in the foregoing; and
• the effects of any reputational damage to the Company resulting from any of the foregoing.

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

Conference Call Information

A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, January 24, 2020. The conference call will be accessible by telephone and through the internet. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 9735109. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/eq5tpgz. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 9735109 by February 7, 2020.

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

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition

(Dollars in thousands, except per share data)	Dec 31, 2019				Sep 30, 2019			Dec 31, 2018
Assets
Cash on hand and in banks	$	198,639			233,623			161,782
Interest bearing cash deposits	132,322				172,761			42,008
Cash and cash equivalents	330,961				406,384			203,790
Debt securities, available-for-sale	2,575,252				2,459,036			2,571,663
Debt securities, held-to-maturity	224,611				234,992			297,915
Total debt securities	2,799,863				2,694,028			2,869,578
Loans held for sale, at fair value	69,194				100,441			33,156
Loans receivable	9,512,810				9,541,088			8,287,549
Allowance for loan and lease losses	(124,490		)		(125,535	)		(131,239	)
Loans receivable, net	9,388,320				9,415,553			8,156,310
Premises and equipment, net	310,309				307,590			241,528
Other real estate owned	5,142				7,148			7,480
Accrued interest receivable	56,047				63,294			54,408
Deferred tax asset	2,037				—			23,564
Core deposit intangible, net	63,286				65,852			49,242
Goodwill	456,418				456,422			289,586
Non-marketable equity securities	11,623				10,427			27,871
Bank-owned life insurance	109,428				108,814			82,320
Other assets	81,371				82,839			76,651
Total assets	$	13,683,999			13,718,792			12,115,484
Liabilities
Non-interest bearing deposits	$	3,696,627			3,772,766			3,001,178
Interest bearing deposits	7,079,830				7,095,859			6,492,589
Securities sold under agreements to repurchase	569,824				558,752			396,151
FHLB advances	38,611				8,707			440,175
Other borrowed funds	28,820				14,808			14,708
Subordinated debentures	139,914				139,913			134,051
Accrued interest payable	4,686				4,435			4,252
Other liabilities	164,954				170,151			116,526
Total liabilities	11,723,266				11,765,391			10,599,630
Stockholders’ Equity
Preferred shares, $0.01 par value per share, 1,000,000  shares authorized, none issued or outstanding	—				—			—
Common stock, $0.01 par value per share, 117,187,500  shares authorized	923				922			845
Paid-in capital	1,378,534				1,375,785			1,051,253
Retained earnings - substantially restricted	541,050				528,599			473,183
Accumulated other comprehensive income (loss)	40,226				48,095			(9,427	)
Total stockholders’ equity	1,960,733				1,953,401			1,515,854
Total liabilities and stockholders’ equity	$	13,683,999			13,718,792			12,115,484

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

	Three Months ended										Year ended
(Dollars in thousands, except per share data)	Dec 31, 2019				Sep 30, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2018
Interest Income
Debt securities	$	20,904			21,357			22,016			85,504			86,499
Residential real estate loans	12,554				12,156			10,751			46,899			40,041
Commercial loans	100,301				97,224			82,238			369,107			304,164
Consumer and other loans	11,522				11,658			10,305			44,667			38,292
Total interest income	145,281				142,395			125,310			546,177			468,996
Interest Expense
Deposits	6,101				6,214			4,989			23,280			18,359
Securities sold under agreements to repurchase	1,007				999			707			3,694			2,248
Federal Home Loan Bank advances	86				2,035			2,146			9,023			8,880
Other borrowed funds	92				47			(10	)		215			95
Subordinated debentures	1,547				1,652			1,604			6,561			5,949
Total interest expense	8,833				10,947			9,436			42,773			35,531
Net Interest Income	136,448				131,448			115,874			503,404			433,465
Provision for loan losses	—				—			1,246			57			9,953
Net interest income after provision for loan losses	136,448				131,448			114,628			503,347			423,512
Non-Interest Income
Service charges and other fees	14,756				15,138			19,708			67,934			74,887
Miscellaneous loan fees and charges	1,379				1,775			1,278			5,313			6,805
Gain on sale of loans	10,135				10,369			5,639			34,064			27,134
Gain (loss) on sale of debt securities	257				13,811			(357	)		14,415			(1,113	)
Other income	1,890				1,956			2,226			9,048			11,111
Total non-interest income	28,417				43,049			28,494			130,774			118,824
Non-Interest Expense
Compensation and employee benefits	55,543				62,509			50,385			222,753			195,056
Occupancy and equipment	9,149				8,731			7,884			34,497			30,734
Advertising and promotions	2,747				2,719			2,434			10,621			9,566
Data processing	4,972				4,466			3,951			17,392			15,911
Other real estate owned	609				166			264			1,105			3,221
Regulatory assessments and insurance	45				593			1,263			3,771			5,075
Loss on termination of hedging activities	—				13,528			—			13,528			—
Core deposit intangibles amortization	2,566				2,360			1,731			8,485			6,270
Other expenses	19,621				15,603			13,964			62,775			54,294
Total non-interest expense	95,252				110,675			81,876			374,927			320,127
Income Before Income Taxes	69,613				63,822			61,246			259,194			222,209
Federal and state income tax expense	12,203				12,212			11,647			48,650			40,331
Net Income	$	57,410			51,610			49,599			210,544			181,878

Glacier Bancorp, Inc.
Average Balance Sheets

	Three Months ended
	December 31, 2019											September 30, 2019
(Dollars in thousands)	Average Balance				Interest & Dividends				Average Yield/ Rate			Average Balance				Interest & Dividends				Average Yield/ Rate
Assets
Residential real estate loans	$	1,010,174			$	12,554			4.97	%		$	994,906			$	12,156			4.89	%
Commercial loans 1	7,617,702				101,619				5.29	%		7,378,337				98,465				5.29	%
Consumer and other loans	911,942				11,522				5.01	%		906,148				11,658				5.10	%
Total loans 2	9,539,818				125,695				5.23	%		9,279,391				122,279				5.23	%
Tax-exempt debt securities 3	853,524				8,983				4.21	%		899,914				9,280				4.13	%
Taxable debt securities 4	2,064,755				14,033				2.72	%		1,917,045				14,250				2.97	%
Total earning assets	12,458,097				148,711				4.74	%		12,096,350				145,809				4.78	%
Goodwill and intangibles	521,405											429,191
Non-earning assets	667,505											672,550
Total assets	$	13,647,007										$	13,198,091
Liabilities
Non-interest bearing deposits	$	3,741,622			$	—			—	%		$	3,513,908			$	—			—	%
NOW and DDA accounts	2,596,029				1,159				0.18	%		2,473,375				1,091				0.17	%
Savings accounts	1,486,387				265				0.07	%		1,445,323				270				0.07	%
Money market deposit accounts	1,947,102				1,710				0.35	%		1,845,184				1,540				0.33	%
Certificate accounts	958,133				2,609				1.08	%		929,441				2,412				1.03	%
Total core deposits	10,729,273				5,743				0.21	%		10,207,231				5,313				0.21	%
Wholesale deposits 5	72,539				358				1.96	%		146,339				901				2.44	%
FHLB advances	15,601				86				2.18	%		222,449				2,035				3.58	%
Repurchase agreements and  other borrowed funds	703,391				2,646				1.49	%		645,426				2,698				1.66	%
Total funding liabilities	11,520,804				8,833				0.30	%		11,221,445				10,947				0.39	%
Other liabilities	164,285											101,806
Total liabilities	11,685,089											11,323,251
Stockholders’ Equity
Common stock	922											903
Paid-in capital	1,377,013											1,292,182
Retained earnings	538,620											531,181
Accumulated other comprehensive income	45,363											50,574
Total stockholders’ equity	1,961,918											1,874,840
Total liabilities and stockholders’ equity	$	13,647,007										$	13,198,091
Net interest income (tax-equivalent)					$	139,878										$	134,862
Net interest spread (tax-equivalent)									4.44	%										4.39	%
Net interest margin (tax-equivalent)									4.45	%										4.42	%

______________________________

¹ Includes tax effect of $1.3 million and $1.2 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2019 and September 30, 2019, respectively.
² Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale.  Non-accrual loans were included in the average volume for the entire period.
³ Includes tax effect of $1.8 million and $1.9 million on tax-exempt debt securities income for the three months ended December 31, 2019 and September 30, 2019, respectively.
⁴ Includes tax effect of $276 thousand and $275 thousand on federal income tax credits for the three months ended December 31, 2019 and September 30, 2019, respectively.
⁵ Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

	Three Months ended
	December 31, 2019											December 31, 2018
(Dollars in thousands)	Average Balance				Interest & Dividends				Average Yield/ Rate			Average Balance				Interest & Dividends				Average Yield/ Rate
Assets
Residential real estate loans	$	1,010,174			$	12,554			4.97	%		$	919,468			$	10,751			4.68	%
Commercial loans 1	7,617,702				101,619				5.29	%		6,452,215				83,319				5.12	%
Consumer and other loans	911,942				11,522				5.01	%		820,439				10,305				4.98	%
Total loans 2	9,539,818				125,695				5.23	%		8,192,122				104,375				5.05	%
Tax-exempt debt securities 3	853,524				8,983				4.21	%		1,082,702				12,421				4.59	%
Taxable debt securities 4	2,064,755				14,033				2.72	%		1,783,881				12,444				2.79	%
Total earning assets	12,458,097				148,711				4.74	%		11,058,705				129,240				4.64	%
Goodwill and intangibles	521,405											339,617
Non-earning assets	667,505											471,696
Total assets	$	13,647,007										$	11,870,018
Liabilities
Non-interest bearing deposits	$	3,741,622			$	—			—	%		$	3,050,140			$	—			—	%
NOW and DDA accounts	2,596,029				1,159				0.18	%		2,334,785				1,038				0.18	%
Savings accounts	1,486,387				265				0.07	%		1,348,907				220				0.06	%
Money market deposit accounts	1,947,102				1,710				0.35	%		1,716,296				920				0.21	%
Certificate accounts	958,133				2,609				1.08	%		916,786				1,858				0.80	%
Total core deposits	10,729,273				5,743				0.21	%		9,366,914				4,036				0.17	%
Wholesale deposits 5	72,539				358				1.96	%		155,203				953				2.44	%
FHLB advances	15,601				86				2.18	%		200,654				2,146				4.18	%
Repurchase agreements and  other borrowed funds	703,391				2,646				1.49	%		539,548				2,301				1.69	%
Total funding liabilities	11,520,804				8,833				0.30	%		10,262,319				9,436				0.36	%
Other liabilities	164,285											103,441
Total liabilities	11,685,089											10,365,760
Stockholders’ Equity
Common stock	922											845
Paid-in capital	1,377,013											1,050,872
Retained earnings	538,620											479,347
Accumulated other comprehensive  income (loss)	45,363											(26,806		)
Total stockholders’ equity	1,961,918											1,504,258
Total liabilities and stockholders’ equity	$	13,647,007										$	11,870,018
Net interest income (tax-equivalent)					$	139,878										$	119,804
Net interest spread (tax-equivalent)									4.44	%										4.28	%
Net interest margin (tax-equivalent)									4.45	%										4.30	%

______________________________

¹ Includes tax effect of $1.3 million and $1.1 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2019 and 2018, respectively.
² Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale.  Non-accrual loans were included in the average volume for the entire period.
³ Includes tax effect of $1.8 million and $2.5 million on tax-exempt debt securities income for the three months ended December 31, 2019 and 2018, respectively.
⁴ Includes tax effect of $276 thousand and $304 thousand on federal income tax credits for the three months ended December 31, 2019 and 2018, respectively.
⁵ Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

	Year ended
	December 31, 2019											December 31, 2018
(Dollars in thousands)	Average Balance				Interest & Dividends				Average Yield/ Rate			Average Balance				Interest & Dividends				Average Yield/ Rate
Assets
Residential real estate loans	$	965,553			$	46,899			4.86	%		$	868,467			$	40,041			4.61	%
Commercial loans 1	7,084,753				373,888				5.28	%		6,134,018				308,263				5.03	%
Consumer and other loans	881,726				44,667				5.07	%		774,813				38,292				4.94	%
Total loans 2	8,932,032				465,454				5.21	%		7,777,298				386,596				4.97	%
Tax-exempt debt securities 3	917,454				38,195				4.16	%		1,083,999				50,239				4.63	%
Taxable debt securities 4	1,935,215				56,258				2.91	%		1,802,704				47,771				2.65	%
Total earning assets	11,784,701				559,907				4.75	%		10,664,001				484,606				4.54	%
Goodwill and intangibles	410,561											311,321
Non-earning assets	611,788											453,394
Total assets	$	12,807,050										$	11,428,716
Liabilities
Non-interest bearing deposits	$	3,323,641			$	—			—	%		$	2,829,916			$	—			—	%
NOW and DDA accounts	2,447,037				4,196				0.17	%		2,242,935				3,862				0.17	%
Savings accounts	1,420,682				1,022				0.07	%		1,298,985				862				0.07	%
Money market deposit accounts	1,787,149				5,385				0.30	%		1,704,269				3,377				0.20	%
Certificate accounts	923,840				9,257				1.00	%		919,356				6,497				0.71	%
Total core deposits	9,902,349				19,860				0.20	%		8,995,461				14,598				0.16	%
Wholesale deposits 5	137,442				3,420				2.49	%		156,022				3,761				2.41	%
FHLB advances	265,712				9,023				3.35	%		231,158				8,880				3.79	%
Repurchase agreements and  other borrowed funds	625,242				10,470				1.67	%		526,623				8,292				1.57	%
Total funding liabilities	10,930,745				42,773				0.39	%		9,909,264				35,531				0.36	%
Other liabilities	123,002											71,901
Total liabilities	11,053,747											9,981,165
Stockholders’ Equity
Common stock	883											836
Paid-in capital	1,208,772											1,014,559
Retained earnings	510,601											452,996
Accumulated other comprehensive  income (loss)	33,047											(20,840		)
Total stockholders’ equity	1,753,303											1,447,551
Total liabilities and stockholders’ equity	$	12,807,050										$	11,428,716
Net interest income (tax-equivalent)					$	517,134										$	449,075
Net interest spread (tax-equivalent)									4.36	%										4.18	%
Net interest margin (tax-equivalent)									4.39	%										4.21	%

______________________________

¹ Includes tax effect of $4.8 million and $4.1 million on tax-exempt municipal loan and lease income for the year ended December 31, 2019 and 2018, respectively.
² Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale.  Non-accrual loans were included in the average volume for the entire period.
³ Includes tax effect of $7.8 million and $10.3 million on tax-exempt investment securities income for the year ended December 31, 2019 and 2018, respectively.
⁴ Includes tax effect of $1.1 million and $1.2 million on federal income tax credits for the year ended December 31, 2019 and 2018, respectively.
⁵ Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification

	Loans Receivable, by Loan Type															% Change from
(Dollars in thousands)	Dec 31, 2019					Sep 30, 2019					Dec 31, 2018					Sep 30, 2019			Dec 31, 2018
Custom and owner occupied construction	$	143,479				$	147,626				$	126,595				(3	)%		13	%
Pre-sold and spec construction	180,539					207,596					121,938					(13	)%		48	%
Total residential construction	324,018					355,222					248,533					(9	)%		30	%
Land development	101,592					103,090					137,814					(1	)%		(26	)%
Consumer land or lots	125,759					128,668					127,775					(2	)%		(2	)%
Unimproved land	62,563					71,467					83,579					(12	)%		(25	)%
Developed lots for operative builders	17,390					13,782					17,061					26	%		2	%
Commercial lots	46,408					64,904					34,096					(28	)%		36	%
Other construction	478,368					443,947					520,005					8	%		(8	)%
Total land, lot, and other construction	832,080					825,858					920,330					1	%		(10	)%
Owner occupied	1,667,526					1,666,211					1,343,563					—	%		24	%
Non-owner occupied	2,017,375					2,023,262					1,605,960					—	%		26	%
Total commercial real estate	3,684,901					3,689,473					2,949,523					—	%		25	%
Commercial and industrial	991,580					1,009,310					907,340					(2	)%		9	%
Agriculture	701,363					718,255					646,822					(2	)%		8	%
1st lien	1,186,889					1,208,096					1,108,227					(2	)%		7	%
Junior lien	53,571					53,931					56,689					(1	)%		(6	)%
Total 1-4 family	1,240,460					1,262,027					1,164,916					(2	)%		6	%
Multifamily residential	342,498					350,622					247,457					(2	)%		38	%
Home equity lines of credit	617,900					612,775					539,938					1	%		14	%
Other consumer	174,643					171,633					165,865					2	%		5	%
Total consumer	792,543					784,408					705,803					1	%		12	% 
States and political subdivisions	533,023					471,599					404,671					13	%		32	%
Other	139,538					174,755					125,310					(20	)%		11	%
Total loans receivable, including loans held for sale	9,582,004					9,641,529					8,320,705					(1	)%		15	%
Less loans held for sale 1	(69,194		)			(100,441		)			(33,156		)			(31	)%		109	%
Total loans receivable	$	9,512,810				$	9,541,088				$	8,287,549				—	%		15 	%

______________________________

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
(Dollars in thousands)	Dec 31, 2019				Sep 30, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2019			Dec 31, 2019
Custom and owner occupied construction	$	185			283			—			185			—			—
Pre-sold and spec construction	743				1,219			463			743			—			—
Total residential construction	928				1,502			463			928			—			—
Land development	852				1,006			2,166			474			—			378
Consumer land or lots	330				828			1,428			330			—			—
Unimproved land	1,181				8,781			9,338			105			—			1,076
Developed lots for operative builders	—				—			68			—			—			—
Commercial lots	529				575			1,046			—			—			529
Other construction	—				—			120			—			—			—
Total land, lot and other construction	2,892				11,190			14,166			909			—			1,983
Owner occupied	4,608				8,251			5,940			3,320			41			1,247
Non-owner occupied	8,229				9,271			10,567			8,229			—			—
Total commercial real estate	12,837				17,522			16,507			11,549			41			1,247
Commercial and industrial	5,297				6,135			3,914			4,945			142			210
Agriculture	2,288				3,469			7,040			2,137			1			150
1st lien	8,671				9,420			10,290			6,414			753			1,504
Junior lien	569				669			565			546			23			—
Total 1-4 family	9,240				10,089			10,855			6,960			776			1,504
Multifamily residential	201				206			—			201			—			—
Home equity lines of credit	2,618				3,553			2,770			2,618			—			—
Other consumer	837				1,098			456			344			445			48
Total consumer	3,455				4,651			3,226			2,962			445			48
Other	299				313			579			292			7			—
Total	$	37,437			55,077			56,750			30,883			1,412			5,142

Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)

	Accruing 30-89 Days Delinquent Loans,  by Loan Type												% Change from
(Dollars in thousands)	Dec 31, 2019				Sep 30, 2019				Dec 31, 2018				Sep 30, 2019			Dec 31, 2018
Custom and owner occupied construction	$	637			$	49			$	1,661			1,200	%		(62	)%
Pre-sold and spec construction	148				8				887				1,750	%		(83	)%
Total residential construction	785				57				2,548				1,277	%		(69	)%
Land development	—				1,282				228				(100	)%		(100	)%
Consumer land or lots	672				836				200				(20	)%		236	%
Unimproved land	558				8				579				6,875	%		(4	)%
Developed lots for operative builders	2				—				122				n/m			(98	)%
Commercial lots	—				—				203				n/m			(100	)%
Other construction	—				142				4,170				(100	)%		(100	)%
Total land, lot and other construction	1,232				2,268				5,502				(46	)%		(78	)%
Owner occupied	3,052				2,949				2,981				3	%		2	%
Non-owner occupied	1,834				1,286				1,245				43	%		47	%
Total commercial real estate	4,886				4,235				4,226				15	%		16	%
Commercial and industrial	2,036				12,780				3,374				(84	)%		(40	)%
Agriculture	4,298				1,290				6,455				233	%		(33	)%
1st lien	4,711				2,521				5,384				87	%		(13	)%
Junior lien	624				715				118				(13	)%		429	%
Total 1-4 family	5,335				3,236				5,502				65	%		(3	)%
Multifamily Residential	—				149				—				(100	)%		n/m
Home equity lines of credit	2,352				4,162				3,562				(43	)%		(34	)%
Other consumer	1,187				1,388				1,650				(14	)%		(28	)%
Total consumer	3,539				5,550				5,212				(36	)%		(32	)%
States and political subdivisions	—				—				229				n/m			(100	)%
Other	1,081				389				519				178	%		108	%
Total	$	23,192			$	29,954			$	33,567			(23	)%		(31	)%

______________________________

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)	Dec 31, 2019				Sep 30, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2019
Custom and owner occupied construction	$	98			—			—			98			—
Pre-sold and spec construction	$	(18	)		(12	)		(352	)		—			18
Total residential construction	80				(12	)		(352	)		98			18
Land development	(30		)		(25	)		(116	)		42			72
Consumer land or lots	(138		)		(160	)		(146	)		64			202
Unimproved land	(311		)		(271	)		(445	)		—			311
Developed lots for operative builders	(18		)		(18	)		33			—			18
Commercial lots	(6		)		(4	)		1			—			6
Other construction	(142		)		(142	)		(19	)		9			151
Total land, lot and other construction	(645		)		(620	)		(692	)		115			760
Owner occupied	(479		)		(35	)		1,320			362			841
Non-owner occupied	2,015				1,861			853			2,156			141
Total commercial real estate	1,536				1,826			2,173			2,518			982
Commercial and industrial	1,472				1,066			2,449			2,385			913
Agriculture	21				(32	)		16			119			98
1st lien	(12		)		189			577			477			489
Junior lien	(303		)		(254	)		(371	)		61			364
Total 1-4 family	(315		)		(65	)		206			538			853
Multifamily residential	—				—			(649	)		—			—
Home equity lines of credit	19				(25	)		(97	)		73			54
Other consumer	603				380			261			895			292
Total consumer	622				355			164			968			346
Other	4,035				3,243			4,967			8,437			4,402
Total	$	6,806			5,761			8,282			15,178			8,372

Visit our website at www.glacierbancorp.com 

CONTACT: Randall M. Chesler, CEO

[phone]

Ron J. Copher, CFO

[phone]