Glacier Bancorp, Inc. Announces Results for the Quarter

3rd Quarter 2018 Highlights:

Net income of $49.3 million for the current quarter, an increase of $12.8 million, or 35 percent, over the prior year third quarter net income of $36.5 million. Pre-tax income of $60.1 million for the current quarter, an increase of $12.0 million, or 25 percent, over the prior year third quarter pre-tax income of $48.1 million.
Current quarter diluted earnings per share of $0.58, an increase of 12 percent from the prior quarter, and an increase of 23 percent from the prior year third quarter diluted earnings per share of $0.47.
Current quarter loan growth of $175 million, or 9 percent annualized.
Current quarter core deposits increased $199 million, or 9 percent annualized.
Net interest margin of 4.26 percent as a percentage of earning assets, on a tax equivalent basis, a 9 basis points increase over the prior quarter, and a 15 basis points increase over the prior year third quarter net interest margin of 4.11 percent.
Dividend declared of $0.26 per share. The dividend was the 134th consecutive quarterly dividend.
The Company successfully completed the core system conversion of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado.

Year-to-Date 2018 Highlights:

Net income of $132 million for the first nine months of 2018, an increase of $30.9 million, or 30 percent, over the first nine months of 2017 net income of $101 million. Pre-tax income of $161 million for the first nine months of 2018, an increase of $26.2 million, or 19 percent, over the first nine months of 2017 pre-tax income of $135 million.
Diluted earnings per share of $1.59, an increase of 21 percent from the prior year first nine months diluted earnings per share of $1.31.
Organic loan growth of $563 million, or 11 percent annualized, for the first nine months of the current year.
Net interest margin of 4.18 percent as a percentage of earning assets, on a tax equivalent basis, a 9 basis points increase over the 4.09 percent net interest margin in the first nine months of the prior year.
Dividends declared of $0.75 per share, an increase of $0.12 per share, or 19 percent, over the prior year first nine months regular quarterly dividends.
The Company completed the acquisition and core system conversion of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado, with total assets of $551 million.
The Company completed the acquisition and core system conversion of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank in Bozeman, Montana, with total assets of $1.110 billion.

Financial Highlights

	At or for the Three Months ended					At or for the Nine Months Ended
(Dollars in thousands, except per share and market data)	Sep 30, 2018		Jun 30, 2018	Mar 31, 2018	Sep 30, 2017	Sep 30, 2018	Sep 30, 2017
Operating results
Net income	$	49,336	44,384	38,559	36,479	132,279	101,421
Basic earnings per share	$	0.58	0.53	0.48	0.47	1.59	1.31
Diluted earnings per share	$	0.58	0.52	0.48	0.47	1.59	1.31
Dividends declared per share ¹	$	0.26	0.26	0.23	0.51	0.75	0.93
Market value per share
Closing	$	43.09	38.68	38.38	37.76	43.09	37.76
High	$	46.28	41.47	41.24	37.76	46.28	38.03
Low	$	38.37	35.77	36.72	31.50	35.77	31.50
Selected ratios and other data
Number of common stock shares outstanding	84,521,093		84,516,650	84,511,472	78,006,956	84,521,093	78,006,956
Average outstanding shares - basic	84,518,407		84,514,257	80,808,904	78,004,450	83,294,111	77,379,514
Average outstanding shares - diluted	84,593,122		84,559,268	80,887,135	78,065,942	83,362,323	77,442,944
Return on average assets (annualized)	1.66%		1.53%	1.50%	1.46%	1.57%	1.40%
Return on average equity (annualized)	13.10%		12.07%	11.90%	11.87%	12.38%	11.49%
Efficiency ratio	52.26%		55.44%	57.80%	53.44%	55.01%	53.92%
Dividend payout ratio ¹	44.83%		49.06%	47.92%	108.51%	47.17%	70.99%
Loan to deposit ratio	85.13%		84.92%	81.83%	84.43%	85.13%	84.43%
Number of full time equivalent employees	2,572		2,605	2,545	2,250	2,572	2,250
Number of locations	164		167	166	145	164	145
Number of ATMs	215		221	223	200	215	200

______________________________
¹Includes a special dividend declared of $0.30 per share for the three and nine months ended September 30, 2017.

KALISPELL, Mont., Oct. 18, 2018 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $49.3 million for the current quarter, an increase of $12.8 million, or 35 percent, from the $36.5 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.58 per share, an increase of $0.11, or 23 percent, from the prior year third quarter diluted earnings per share of $0.47. Included in the current quarter was $1.3 million of acquisition-related expenses. “This was a very strong quarter which highlights the consistent strength of the Glacier team and business model. We saw solid, broad-based growth in quality loans and deposits across the franchise,” said Randy Chesler, President and Chief Executive Officer.

Net income for the nine months ended September 30, 2018 was $132 million, an increase of $30.9 million, or 30 percent, from the $101 million of net income for the first nine months of the prior year. Diluted earnings per share for the first nine months of 2018 was $1.59 per share, an increase of $0.28, or 21 percent, from the diluted earnings per share of $1.31 for the same period in the prior year.

On February 28, 2018, the Company completed the acquisition of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank in Bozeman, Montana (collectively, “FSB”). On January 31, 2018, the Company completed the acquisition of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado (collectively, “Collegiate”). The Company’s results of operations and financial condition include the acquisitions beginning on the acquisition dates and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:

	FSB		Collegiate
(Dollars in thousands)	February 28, 2018		January 31, 2018	Total
Total assets	$	1,109,684	551,198	1,660,882
Debt securities	271,865		42,177	314,042
Loans receivable	627,767		354,252	982,019
Non-interest bearing deposits	301,468		170,022	471,490
Interest bearing deposits	576,118		267,149	843,267
Borrowings	36,880		12,509	49,389

Asset Summary

										$ Change from
(Dollars in thousands)	Sep 30, 2018			Jun 30, 2018		Dec 31, 2017		Sep 30, 2017		Jun 30, 2018		Dec 31, 2017		Sep 30, 2017
Cash and cash equivalents	$	307,104		368,132		200,004		220,210		(61,028	)	107,100		86,894

Debt securities, available-for-sale	2,103,619			2,177,352		1,778,243		1,886,517		(73,733	)	325,376		217,102
Debt securities, held-to-maturity	590,915			620,409		648,313		655,128		(29,494	)	(57,398	)	(64,213	)
Total debt securities	2,694,534			2,797,761		2,426,556		2,541,645		(103,227	)	267,978		152,889

Loans receivable
Residential real estate	862,830			835,382		720,728		734,242		27,448		142,102		128,588
Commercial real estate	4,527,577			4,384,781		3,577,139		3,503,976		142,796		950,438		1,023,601
Other commercial	1,921,955			1,940,435		1,579,353		1,575,514		(18,480	)	342,602		346,441
Home equity	528,404			511,043		457,918		452,291		17,361		70,486		76,113
Other consumer	282,479			277,031		242,686		243,410		5,448		39,793		39,069
Loans receivable	8,123,245			7,948,672		6,577,824		6,509,433		174,573		1,545,421		1,613,812
Allowance for loan and lease losses	(132,535		)	(131,564	)	(129,568	)	(129,576	)	(971	)	(2,967	)	(2,959	)
Loans receivable, net	7,990,710			7,817,108		6,448,256		6,379,857		173,602		1,542,454		1,610,853

Other assets	916,754			914,643		631,533		656,890		2,111		285,221		259,864
Total assets	$	11,909,102		11,897,644		9,706,349		9,798,602		11,458		2,202,753		2,110,500

Total debt securities of $2.695 billion at September 30, 2018 decreased $103 million, or 4 percent, during the current quarter and increased $153 million, or 6 percent, from the prior year third quarter. Debt securities represented 23 percent of total assets at September 30, 2018 compared to 26 percent of total assets at September 30, 2017.

The loan portfolio of $8.123 billion increased $175 million, or 9 percent annualized, during the current quarter. The loan category with the largest increase was commercial real estate loans which increased $143 million, or 3 percent. Excluding the FSB and Collegiate acquisitions, the loan portfolio increased $632 million, or 10 percent, since September 30, 2017 and was primarily driven by growth in commercial real estate loans, which increased $406 million, or 12 percent.

Credit Quality Summary

	At or for the Nine Months ended			At or for the Six Months ended		At or for the Year ended		At or for the Nine Months ended
(Dollars in thousands)	Sep 30, 2018			Jun 30, 2018		Dec 31, 2017		Sep 30, 2017
Allowance for loan and lease losses
Balance at beginning of period	$	129,568		129,568		129,572		129,572
Provision for loan losses	8,707			5,513		10,824		7,938
Charge-offs	(11,905		)	(7,611	)	(19,331	)	(14,801	)
Recoveries	6,165			4,094		8,503		6,867
Balance at end of period	$	132,535		131,564		129,568		129,576

Other real estate owned	$	12,399		13,616		14,269		14,359
Accruing loans 90 days or more past due	4,333			12,751		6,077		3,944
Non-accrual loans	55,373			58,170		44,833		46,770
Total non-performing assets	$	72,105		84,537		65,179		65,073

Non-performing assets as a percentage of subsidiary assets	0.61		%	0.71	%	0.68	%	0.67	%
Allowance for loan and lease losses as a percentage of non-performing loans	222		%	186	%	255	%	256	%
Allowance for loan and lease losses as a percentage of total loans	1.63		%	1.66	%	1.97	%	1.99	%
Net charge-offs as a percentage of total loans	0.07		%	0.04	%	0.17	%	0.12	%
Accruing loans 30-89 days past due	$	25,181		39,650		37,687		29,115
Accruing troubled debt restructurings	$	35,080		34,991		38,491		31,093
Non-accrual troubled debt restructurings	$	12,911		18,380		23,709		22,134
U.S. government guarantees included in non-performing assets	$	5,791		7,265		2,513		1,913

Non-performing assets at September 30, 2018 were $72.1 million, a decrease of $12.4 million, or 15 percent, from the prior quarter and an increase of $7.0 million, or 11 percent, from the prior year third quarter. Non-performing assets as a percentage of subsidiary assets at September 30, 2018 was 0.61 percent, a decrease of 10 basis points from the prior quarter, and a decrease of 6 basis points from the prior year third quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $25.2 million at September 30, 2018 decreased $14.5 million from the prior quarter and decreased $3.9 million from the prior year third quarter. Early stage delinquencies as a percentage of loans at September 30, 2018 was 0.31 percent which was a decrease of 19 basis points from the prior quarter and a 14 basis point decrease from prior year third quarter. The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at September 30, 2018 was 1.63 percent, which was a 3 basis points decrease compared to the prior quarter and a decrease of 36 basis points from a year ago. The decrease from the prior year third quarter was primarily driven by the addition of loans from new acquisitions, as they are added to the loan portfolio on a fair value basis with no allowance.

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
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	%
Fourth quarter 2017	2,886		2,894		1.97	%	0.57	%	0.68	%
Third quarter 2017	3,327		3,628		1.99	%	0.45	%	0.67	%
Second quarter 2017	3,013		2,362		2.05	%	0.49	%	0.70	%
First quarter 2017	1,598		1,944		2.20	%	0.67	%	0.75	%
Fourth quarter 2016	1,139		4,101		2.28	%	0.45	%	0.76	%

Net charge-offs for the current quarter were $2.2 million compared to $762 thousand for the prior quarter and $3.6 million from the same quarter last year. Current quarter provision for loan losses was $3.2 million, compared to $4.7 million in the prior quarter and $3.3 million in the prior year third 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.

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)	Sep 30, 2018		Jun 30, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2018		Dec 31, 2017		Sep 30, 2017
Deposits
Non-interest bearing deposits	$	3,103,112	2,914,885	2,311,902	2,355,983	188,227		791,210		747,129
NOW and DDA accounts	2,346,050		2,354,214	1,695,246	1,733,353	(8,164	)	650,804		612,697
Savings accounts	1,345,163		1,330,637	1,082,604	1,081,056	14,526		262,559		264,107
Money market deposit accounts	1,722,975		1,723,681	1,512,693	1,564,738	(706	)	210,282		158,237
Certificate accounts	932,461		927,608	817,259	846,005	4,853		115,202		86,456
Core deposits, total	9,449,761		9,251,025	7,419,704	7,581,135	198,736		2,030,057		1,868,626
Wholesale deposits	151,421		172,550	160,043	186,019	(21,129	)	(8,622	)	(34,598	)
Deposits, total	9,601,182		9,423,575	7,579,747	7,767,154	177,607		2,021,435		1,834,028
Repurchase agreements	408,754		361,515	362,573	453,596	47,239		46,181		(44,842	)
Federal Home Loan Bank advances	155,328		395,037	353,995	153,685	(239,709	)	(198,667	)	1,643
Other borrowed funds	9,944		9,917	8,224	8,243	27		1,720		1,701
Subordinated debentures	134,055		134,058	126,135	126,099	(3	)	7,920		7,956
Other liabilities	107,227		99,550	76,618	83,624	7,677		30,609		23,603
Total liabilities	$	10,416,490	10,423,652	8,507,292	8,592,401	(7,162	)	1,909,198		1,824,089

Core deposits of $9.450 billion as of September 30, 2018 increased $199 million, or 2 percent, from the prior quarter. Excluding acquisitions, core deposits increased $554 million, or 7 percent, from the prior year third quarter. The Company benefited from the increase in non-interest bearing deposits which increased $188 million, or 6 percent from the prior quarter and organically increased $276 million, or 12 percent from the prior year third quarter.

Securities sold under agreements to repurchase (“repurchase agreements”) of $409 million at September 30, 2018 increased $47.2 million, or 13 percent, over the prior quarter and decreased $44.8 million, or 10 percent, over prior year third quarter. Federal Home Loan Bank (“FHLB”) advances of $155 million at September 30, 2018, decreased $240 million over the prior quarter and remained stable from the prior year third quarter. FHLB advances continue to fluctuate to supplement deposit growth and fund loan growth.

Stockholders’ Equity Summary

										$ Change from
(Dollars in thousands, except per share data)	Sep 30, 2018			Jun 30, 2018		Dec 31, 2017		Sep 30, 2017		Jun 30, 2018		Dec 31, 2017		Sep 30, 2017

Common equity	$	1,522,329		1,494,274		1,201,036		1,201,534		28,055		321,293		320,795
Accumulated other comprehensive (loss) income	(29,717		)	(20,282	)	(1,979	)	4,667		(9,435	)	(27,738	)	(34,384	)
Total stockholders’ equity	1,492,612			1,473,992		1,199,057		1,206,201		18,620		293,555		286,411

Goodwill and core deposit intangible, net	(340,508		)	(342,243	)	(191,995	)	(192,609	)	1,735		(148,513	)	(147,899	)
Tangible stockholders’ equity	$	1,152,104		1,131,749		1,007,062		1,013,592		20,355		145,042		138,512

Stockholders’ equity to total assets		12.53	%	12.39	%	12.35	%	12.31	%

Tangible stockholders’ equity to total tangible assets		9.96	%	9.79	%	10.58	%	10.55	%

Book value per common share	$	17.66		17.44		15.37		15.46		0.22		2.29		2.20

Tangible book value per common share	$	13.63		13.39		12.91		12.99		0.24		0.72		0.64

Tangible stockholders’ equity of $1.152 billion at September 30, 2018 increased $20 million compared to the prior quarter which was the result of earnings retention. Tangible stockholders’ equity increased $139 million over the prior year third quarter which was the result of earnings retention and $181 million and $69.8 million of Company stock issued for the acquisitions of FSB and Collegiate, respectively. These increases more than offset the increase in goodwill and core deposit intangibles associated with the acquisitions and the decrease in accumulated other comprehensive income. Tangible book value per common share at quarter end increased $0.24 per share from the prior quarter and increased $0.64 per share from a year ago.

Cash Dividends
On September 26, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend was payable October 18, 2018 to shareholders of record on October 9, 2018. The dividend was the 134th consecutive quarterly dividend. Regular quarterly dividends declared for the first nine months of 2018 were $0.75 per share, an increase of $0.12 per share, or 19 percent, over the same period last year. 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 September 30, 2018
Compared to June 30, 2018, March 31, 2018 and September 30, 2017

Income Summary

	Three Months ended									$ Change from
(Dollars in thousands)	Sep 30, 2018			Jun 30, 2018		Mar 31, 2018		Sep 30, 2017		Jun 30, 2018		Mar 31, 2018		Sep 30, 2017
Net interest income
Interest income	$	122,905		117,715		103,066		96,464		5,190		19,839		26,441
Interest expense	9,160			9,161		7,774		7,652		(1	)	1,386		1,508
Total net interest income	113,745			108,554		95,292		88,812		5,191		18,453		24,933
Non-interest income
Service charges and other fees	19,504			18,804		16,871		17,307		700		2,633		2,197
Miscellaneous loan fees and charges	1,807			2,243		1,477		1,211		(436	)	330		596
Gain on sale of loans	7,256			8,142		6,097		9,141		(886	)	1,159		(1,885	)
(Loss) gain on sale of investments	(367		)	(56	)	(333	)	77		(311	)	(34	)	(444	)
Other income	4,216			2,695		1,974		3,449		1,521		2,242		767
Total non-interest income	32,416			31,828		26,086		31,185		588		6,330		1,231
Total income	$	146,161		140,382		121,378		119,997		5,779		24,783		26,164

Net interest margin (tax-equivalent)	4.26		%	4.17	%	4.10	%	4.11	%

Net Interest Income
The current quarter interest income of $123 million increased $5.2 million, or 4 percent, from the prior quarter and increased $26.4 million, or 27 percent, over the prior year third quarter with both increases primarily attributable to the increase in interest income from commercial loans. Interest income on commercial loans increased $4.8 million, or 6 percent, from the prior quarter and increased $20.7 million, or 35 percent, from the prior year third quarter.

The current quarter interest expense of $9.2 million remained stable from the prior quarter and increased $1.5 million, or 20 percent, from the prior year third quarter. The total cost of funding (including non-interest bearing deposits) for the current quarter was 36 basis points compared to 36 basis points for the prior quarter and 35 basis points for the prior year third quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.26 percent compared to 4.17 percent in the prior quarter. The 9 basis points increase in the net interest margin was primarily the result of increased yields on the loan portfolio and a 2 basis points increase in loan discount accretion from the fair value adjustments of recently acquired banks. The current quarter net interest margin increased 15 basis points over the prior year third quarter net interest margin of 4.11 percent. Included in the current quarter margin was a 14 basis points decrease due to the reduction in the federal corporate income tax rate in 2018 by the Tax Cut and Jobs Act (“Tax Act”). The increase in the margin from the prior year third quarter resulted from the remix of earning assets to higher yielding loans, increased yields on the loan portfolio, and stable funding costs. “The Bank divisions have done well again in growing their non-interest bearing deposit balances,” said Ron Copher, Chief Financial Officer. “Growth in these balances enable the Company to limit rate increases on interest bearing balances, especially in higher interest rate environments.”

Non-interest Income
Non-interest income for the current quarter totaled $32.4 million, an increase of $588 thousand, or 2 percent, from the prior quarter and an increase of $1.2 million, or 4 percent, over the same quarter last year. Service charges and other fees of $19.5 million for the current quarter, increased $700 thousand, or 4 percent, from the prior quarter and increased $2.2 million, or 13 percent, from the prior year third quarter with such increases primarily due to the increased number of accounts from organic growth and acquisitions. Miscellaneous loan fees and charges decreased $436 thousand, or 19 percent from prior quarter as a result of seasonality and increased $596 thousand, or 49 percent, from the prior year third quarter as a result of the recent acquisitions and increased loan growth. Gain on sale of loans decreased $886 thousand, or 11 percent, from the prior quarter as a result of seasonal activity and decreased $1.9 million, or 21 percent from the prior year third quarter as result of the decrease in purchase and refinance activity. Other income increased $1.5 million, or 56 percent, from the prior quarter and was primarily due to a $2.3 million gain on sale of a former branch building. Compared to the prior year third quarter, other income increased $767 thousand, or 22 percent, due to the sale of the former branch building, which was partially offset by the $1.3 million decrease in gain on sale of other real estate owned (“OREO”).

Non-interest Expense Summary

	Three Months ended					$ Change from
(Dollars in thousands)	Sep 30, 2018		Jun 30, 2018	Mar 31, 2018	Sep 30, 2017	Jun 30, 2018		Mar 31, 2018		Sep 30, 2017
Compensation and employee benefits	$	49,927	49,023	45,721	41,297	904		4,206		8,630
Occupancy and equipment	7,914		7,662	7,274	6,500	252		640		1,414
Advertising and promotions	2,432		2,530	2,170	2,239	(98	)	262		193
Data processing	3,752		4,241	3,967	3,647	(489	)	(215	)	105
Other real estate owned	2,674		211	72	817	2,463		2,602		1,857
Regulatory assessments and insurance	1,277		1,329	1,206	1,214	(52	)	71		63
Core deposit intangibles amortization	1,735		1,748	1,056	640	(13	)	679		1,095
Other expenses	13,118		15,051	12,161	12,198	(1,933	)	957		920

Total non-interest expense	$	82,829	81,795	73,627	68,552	1,034		9,202		14,277

Total non-interest expense of $82.8 million for the current quarter increased $1.0 million, or 1 percent, over the prior quarter and increased $14.3 million, or 21 percent, over the prior year third quarter. Compensation and employee benefits increased by $904 thousand, or 2 percent, from the prior quarter. Compensation and employee benefits increased by $8.6 million, or 21 percent, from the prior year third quarter principally due to the increased number of employees from acquisitions. Occupancy and equipment expense increased $1.4 million, or 22 percent, over the prior year third quarter and was attributable to increased costs from acquisitions. OREO expenses increased $2.5 million from the prior quarter and increased $1.9 million from the prior year third quarter, due to a write down of $2.2 million on a single property. Other expenses decreased $1.9 million, or 13 percent, from the prior quarter and was primarily due to a decrease in acquisition-related expenses. Compared to the prior year third quarter, other expenses increased $920 thousand, or 8 percent. Acquisition-related expenses were $1.3 million during the current quarter compared to $2.9 million in the prior quarter and $245 thousand in the prior year third quarter.

Federal and State Income Tax Expense
Tax expense during the third quarter of 2018 was $10.8 million, which is a decrease of $837 thousand, or 7 percent, from the prior year third quarter and was primarily attributable to the decrease in the federal income tax rate driven by the Tax Act. The effective tax rate in the third quarter of 2018 was 18 percent compared to 24 percent in the prior year third quarter.

Efficiency Ratio
The current quarter efficiency ratio was 52.26 percent, a 318 basis points improvement from the prior quarter efficiency ratio of 55.44 percent. The improvement was the result of increases in net interest income and non-interest income, including the $2.3 million gain on the sale of the former branch building. In addition, there was a decrease in acquisition-related expenses and the Company continues to control its operating costs.

Operating Results for Nine Months Ended September 30, 2018
Compared to September 30, 2017

Income Summary

	Nine Months Ended
(Dollars in thousands)	Sep 30, 2018			Sep 30, 2017			$ Change			% Change
Net interest income
Interest income	$	343,686		$	278,124		$	65,562		24	%
Interest expense	26,095			22,792			3,303			14	%
Total net interest income	317,591			255,332			62,259			24	%

Non-interest income
Service charges and other fees	55,179			50,435			4,744			9	%
Miscellaneous loan fees and charges	5,527			3,283			2,244			68	%
Gain on sale of loans	21,495			23,031			(1,536		)	(7	)%
Loss on sale of investments	(756		)	(545		)	(211		)	39	%
Other income	8,885			8,326			559			7	%
Total non-interest income	90,330			84,530			5,800			7	%

	$	407,921		$	339,862		$	68,059		20	%

Net interest margin (tax-equivalent)	4.18		%	4.09		%

Net Interest Income
Interest income for the first nine months of 2018 increased $65.6 million, or 24 percent, from the first nine months of 2017 and was principally due to a $55.9 million increase in interest income from commercial loans. Interest expense of $26.1 million for the first nine months of 2018 increased $3.3 million over the prior year same period. Interest expense on repurchase agreements, FHLB advances, and subordinated debt increased $3.4 million, or 37 percent, over the prior year and was primarily driven by the increase in market interest rates. The Company has maintained stable funding costs through its focus on growing non-interest bearing deposits and continued pricing discipline. The total funding cost was 36 basis points for the first nine months of 2018 and 2017.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first nine months of 2018 was 4.18 percent, a 9 basis points increase from the net interest margin of 4.09 percent for the first nine months of 2017. Included in the current year margin was a 14 basis points decrease compared to the prior year driven by the reduction in the federal corporate income tax rate. The increase in the margin from the prior year resulted from the remix of earning assets to higher yielding loans, increased yields on the loan portfolio, and stable funding costs.

Non-interest Income
Non-interest income of $90.3 million for the first nine months of 2018 increased $5.8 million, or 7 percent, over the same period last year. Service charges and other fees of $55.2 million for 2018 increased $4.7 million, or 9 percent, from the prior year as a result of an increased number of deposit accounts from organic growth and acquisitions. Miscellaneous loan fees and charges for the first nine months of 2018 increased $2.2 million, or 68 percent from the prior year as a result of the recent acquisitions and increased loan growth. Gain on sale of loans decreased $1.5 million, or 7 percent, from the prior year first nine months due to the decrease in purchase and refinance activity. Other income of $8.9 million, increased $559 thousand, or 7 percent, from the prior year first nine months with increases of $1.9 million from the sale of bank assets and a decrease of $2.5 million from the gain on sale of OREO.

Non-interest Expense Summary

	Nine Months Ended
(Dollars in thousands)	Sep 30, 2018		Sep 30, 2017		$ Change		% Change

Compensation and employee benefits	$	144,671	$	120,041	$	24,630	21	%
Occupancy and equipment	22,850		19,706		3,144		16	%
Advertising and promotions	7,132		6,381		751		12	%
Data processing	11,960		10,180		1,780		17	%
Other real estate owned	2,957		1,532		1,425		93	%
Regulatory assessments and insurance	3,812		3,362		450		13	%
Core deposit intangibles amortization	4,539		1,880		2,659		141	%
Other expenses	40,330		34,123		6,207		18	%
Total non-interest expense	$	238,251	$	197,205	$	41,046	21	%

Total non-interest expense of $238.3 million for the first nine months of 2018 increased $41.0 million, or 21 percent, over prior year same period. Compensation and employee benefits for the first nine months of 2018 increased $24.6 million, or 21 percent, from the same period last year due to the increased number of employees from acquisitions. Occupancy and equipment expense for the first nine months of 2018 increased $3.1 million, or 16 percent from the prior year as a result of increased costs from acquisitions. Data processing expense for the current year increased $1.8 million, or 17 percent, from the prior year as a result of increased costs from the acquisitions and organic growth. Current year other expenses of $40.3 million increased $6.2 million, or 18 percent, from the prior year due to an increase in acquisition-related expenses. Acquisition-related expenses were $6.1 million during the first nine months of 2018 compared to $1.2 million in the prior year first nine months.

Provision for Loan Losses
The provision for loan losses was $8.7 million for the first nine months of 2018, an increase of $769 thousand from the same period in the prior year. Net charge-offs during the first nine months of 2018 were $5.7 million compared to $7.9 million during the same period in 2017.

Federal and State Income Tax Expense
Tax expense of $28.7 million in the first nine months of 2018 decreased $4.6 million, or 14 percent, over the prior year same period as a result of a decrease in the federal corporate income tax rate by the Tax Act. The effective tax rate in 2018 was 18 percent compared to 25 percent in the prior year.

Efficiency Ratio
The efficiency ratio of 55.01 percent for the first nine months of 2018 increased 109 basis points from the prior year first nine months efficiency ratio of 53.92. The increase included 140 basis points related to the decrease in the federal income tax rate and a 117 basis points increase in acquisition-related expenses.

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, limit certain sources of revenue, or increase cost of operations;
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, October 19, 2018. 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 8090339. To participate on the webcast, log on to: https://edge.media-server.com/m6/p/rbdz6bvt. 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 8090339 by November 2, 2018.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is the parent company for Glacier Bank, Kalispell and its bank divisions: First Security Bank of Missoula; Valley Bank of Helena; Western Security Bank, Billings; First Bank of Montana, Lewistown; and First Security Bank, Bozeman, all located in Montana; as well as Mountain West Bank, Coeur d’Alene, operating in Idaho, Utah and Washington; First Bank, Powell, operating in Wyoming and Utah; Citizens Community Bank, Pocatello, operating in Idaho; Bank of the San Juans, Durango; and Collegiate Peaks Bank, Buena Vista both operating in Colorado; First State Bank, Wheatland, operating in Wyoming; North Cascades Bank, Chelan, operating in Washington; and The Foothills Bank, Yuma, operating in Arizona.

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

(Dollars in thousands, except per share data)	September 30, 2018			June 30, 2018		December 31, 2017		September 30, 2017
Assets
Cash on hand and in banks	$	171,394		174,239		139,948		136,822
Federal funds sold	—			—		—		210
Interest bearing cash deposits	135,710			193,893		60,056		83,178
Cash and cash equivalents	307,104			368,132		200,004		220,210
Debt securities, available-for-sale	2,103,619			2,177,352		1,778,243		1,886,517
Debt securities, held-to-maturity	590,915			620,409		648,313		655,128
Total debt securities	2,694,534			2,797,761		2,426,556		2,541,645
Loans held for sale, at fair value	50,649			53,788		38,833		48,709
Loans receivable	8,123,245			7,948,672		6,577,824		6,509,433
Allowance for loan and lease losses	(132,535		)	(131,564	)	(129,568	)	(129,576	)
Loans receivable, net	7,990,710			7,817,108		6,448,256		6,379,857
Premises and equipment, net	239,006			240,373		177,348		178,672
Other real estate owned	12,399			13,616		14,269		14,359
Accrued interest receivable	62,248			55,973		44,462		50,492
Deferred tax asset	37,264			34,211		38,344		58,916
Core deposit intangible, net	50,973			52,708		14,184		14,798
Goodwill	289,535			289,535		177,811		177,811
Non-marketable equity securities	16,502			26,107		29,884		21,890
Bank-owned life insurance	81,850			81,379		59,351		58,982
Other assets	76,328			66,953		37,047		32,261
Total assets	$	11,909,102		11,897,644		9,706,349		9,798,602
Liabilities
Non-interest bearing deposits	$	3,103,112		2,914,885		2,311,902		2,355,983
Interest bearing deposits	6,498,070			6,508,690		5,267,845		5,411,171
Securities sold under agreements to repurchase	408,754			361,515		362,573		453,596
FHLB advances	155,328			395,037		353,995		153,685
Other borrowed funds	9,944			9,917		8,224		8,243
Subordinated debentures	134,055			134,058		126,135		126,099
Accrued interest payable	4,065			3,952		3,450		3,154
Other liabilities	103,162			95,598		73,168		80,470
Total liabilities	10,416,490			10,423,652		8,507,292		8,592,401
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	845			845		780		780
Paid-in capital	1,050,463			1,049,724		797,997		797,381
Retained earnings - substantially restricted	471,021			443,705		402,259		403,373
Accumulated other comprehensive (loss) income	(29,717		)	(20,282	)	(1,979	)	4,667
Total stockholders’ equity	1,492,612			1,473,992		1,199,057		1,206,201
Total liabilities and stockholders’ equity	$	11,909,102		11,897,644		9,706,349		9,798,602

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

	Three Months ended						Nine Months Ended
(Dollars in thousands, except per share data)	September 30, 2018			June 30, 2018		September 30, 2017	September 30, 2018		September 30, 2017
Interest Income
Debt securities	$	21,971		22,370		19,987	64,483		63,305
Residential real estate loans	10,356			10,149		8,326	29,290		24,594
Commercial loans	80,587			75,824		59,875	221,926		166,027
Consumer and other loans	9,991			9,372		8,276	27,987		24,198
Total interest income	122,905			117,715		96,464	343,686		278,124
Interest Expense
Deposits	4,837			4,617		4,564	13,370		13,505
Securities sold under agreements to repurchase	570			486		537	1,541		1,362
Federal Home Loan Bank advances	2,132			2,513		1,398	6,734		4,642
Other borrowed funds	63			26		21	105		55
Subordinated debentures	1,558			1,519		1,132	4,345		3,228
Total interest expense	9,160			9,161		7,652	26,095		22,792
Net Interest Income	113,745			108,554		88,812	317,591		255,332
Provision for loan losses	3,194			4,718		3,327	8,707		7,938
Net interest income after provision for loan losses	110,551			103,836		85,485	308,884		247,394
Non-Interest Income
Service charges and other fees	19,504			18,804		17,307	55,179		50,435
Miscellaneous loan fees and charges	1,807			2,243		1,211	5,527		3,283
Gain on sale of loans	7,256			8,142		9,141	21,495		23,031
(Loss) gain on sale of debt securities	(367		)	(56	)	77	(756	)	(545	)
Other income	4,216			2,695		3,449	8,885		8,326
Total non-interest income	32,416			31,828		31,185	90,330		84,530
Non-Interest Expense
Compensation and employee benefits	49,927			49,023		41,297	144,671		120,041
Occupancy and equipment	7,914			7,662		6,500	22,850		19,706
Advertising and promotions	2,432			2,530		2,239	7,132		6,381
Data processing	3,752			4,241		3,647	11,960		10,180
Other real estate owned	2,674			211		817	2,957		1,532
Regulatory assessments and insurance	1,277			1,329		1,214	3,812		3,362
Core deposit intangibles amortization	1,735			1,748		640	4,539		1,880
Other expenses	13,118			15,051		12,198	40,330		34,123
Total non-interest expense	82,829			81,795		68,552	238,251		197,205

Income Before Income Taxes	60,138			53,869		48,118	160,963		134,719
Federal and state income tax expense	10,802			9,485		11,639	28,684		33,298
Net Income	$	49,336		44,384		36,479	132,279		101,421

Glacier Bancorp, Inc.
Average Balance Sheets

	Three Months ended
	September 30, 2018							September 30, 2017
(Dollars in thousands)	Average Balance			Interest & Dividends		Average Yield/ Rate		Average Balance		Interest & Dividends		Average Yield/ Rate
Assets
Residential real estate loans	$	893,972		$	10,356	4.63	%	$	771,342	$	8,326	4.32	%
Commercial loans ¹	6,361,742			81,636		5.09	%	4,968,989		61,560		4.92	%
Consumer and other loans	796,558			9,991		4.98	%	688,294		8,276		4.77	%
Total loans ²	8,052,272			101,983		5.02	%	6,428,625		78,162		4.82	%
Tax-exempt debt securities ³	1,074,266			12,389		4.61	%	1,106,288		15,678		5.67	%
Taxable debt securities ⁴	1,838,949			12,425		2.70	%	1,757,102		9,961		2.27	%
Total earning assets	10,965,487			126,797		4.59	%	9,292,015		103,801		4.43	%
Goodwill and intangibles	341,354							192,937
Non-earning assets	476,135							411,248
Total assets	$	11,782,976						$	9,896,200
Liabilities
Non-interest bearing deposits	$	2,988,562		$	—	—	%	$	2,274,387	$	—	—	%
NOW and DDA accounts	2,304,338			997		0.17	%	1,720,374		465		0.11	%
Savings accounts	1,340,003			219		0.06	%	1,071,674		160		0.06	%
Money market deposit accounts	1,720,845			881		0.20	%	1,596,170		624		0.16	%
Certificate accounts	942,417			1,728		0.73	%	866,094		1,275		0.58	%
Total core deposits	9,296,165			3,825		0.16	%	7,528,699		2,524		0.13	%
Wholesale deposits ⁵	166,009			1,012		2.42	%	297,768		2,040		2.72	%
FHLB advances	209,248			2,132		3.99	%	197,458		1,398		2.77	%
Repurchase agreements and other borrowed funds	534,384			2,191		1.63	%	562,169		1,690		1.19	%
Total funding liabilities	10,205,806			9,160		0.36	%	8,586,094		7,652		0.35	%
Other liabilities	82,621							89,898
Total liabilities	10,288,427							8,675,992
Stockholders’ Equity
Common stock	845							780
Paid-in capital	1,050,081							797,011
Retained earnings	467,671							418,034
Accumulated other comprehensive (loss) income	(24,048		)					4,383
Total stockholders’ equity	1,494,549							1,220,208
Total liabilities and stockholders’ equity	$	11,782,976						$	9,896,200
Net interest income (tax-equivalent)				$	117,637					$	96,149
Net interest spread (tax-equivalent)						4.23	%					4.08	%
Net interest margin (tax-equivalent)						4.26	%					4.11	%

______________________________
¹Includes tax effect of $1.0 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2018 and 2017, 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.
³Includes tax effect of $2.5 million and $5.3 million on tax-exempt debt securities income for the three months ended September 30, 2018 and 2017, respectively.
⁴Includes tax effect of $304 thousand on federal income tax credits for the three months ended September 30, 2018 and 2017.
⁵Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

	Nine Months Ended
	September 30, 2018							September 30, 2017
(Dollars in thousands)	Average Balance			Interest & Dividends		Average Yield/ Rate		Average Balance			Interest & Dividends		Average Yield/ Rate
Assets
Residential real estate loans	$	851,280		$	29,290	4.59	%	$	739,921		$	24,594	4.43	%
Commercial loans ¹	6,026,787			224,944		4.99	%	4,692,565			170,604		4.86	%
Consumer and other loans	759,437			27,987		4.93	%	680,368			24,198		4.76	%
Total loans ²	7,637,504			282,221		4.94	%	6,112,854			219,396		4.80	%
Tax-exempt debt securities ³	1,084,436			37,818		4.65	%	1,183,954			50,593		5.70	%
Taxable debt securities ⁴	1,809,047			35,327		2.60	%	1,802,842			30,952		2.29	%
Total earning assets	10,530,987			355,366		4.51	%	9,099,650			300,941		4.42	%
Goodwill and intangibles	301,786							175,752
Non-earning assets	447,226							391,519
Total assets	$	11,279,999						$	9,666,921
Liabilities
Non-interest bearing deposits	$	2,755,702		$	—	—	%	$	2,122,385		$	—	—	%
NOW and DDA accounts	2,211,982			2,824		0.17	%	1,640,712			994		0.08	%
Savings accounts	1,282,161			642		0.07	%	1,045,065			460		0.06	%
Money market deposit accounts	1,700,216			2,457		0.19	%	1,546,181			1,797		0.16	%
Certificate accounts	920,222			4,639		0.67	%	908,359			3,911		0.58	%
Total core deposits	8,870,283			10,562		0.16	%	7,262,702			7,162		0.13	%
Wholesale deposits ⁵	156,298			2,808		2.40	%	314,385			6,343		2.70	%
FHLB advances	241,438			6,734		3.68	%	269,377			4,642		2.27	%
Repurchase agreements and other borrowed funds	522,267			5,991		1.53	%	558,943			4,645		1.11	%
Total funding liabilities	9,790,286			26,095		0.36	%	8,405,407			22,792		0.36	%
Other liabilities	61,272							80,841
Total liabilities	9,851,558							8,486,248
Stockholders’ Equity
Common stock	833							774
Paid-in capital	1,002,321							775,761
Retained earnings	444,116							404,638
Accumulated other comprehensive loss	(18,829		)					(500		)
Total stockholders’ equity	1,428,441							1,180,673
Total liabilities and stockholders’ equity	$	11,279,999						$	9,666,921
Net interest income (tax-equivalent)				$	329,271						$	278,149
Net interest spread (tax-equivalent)						4.15	%						4.06	%
Net interest margin (tax-equivalent)						4.18	%						4.09	%

______________________________
¹Includes tax effect of $3.0 million and $4.6 million on tax-exempt municipal loan and lease income for the nine months ended September 30, 2018 and 2017, 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.
³Includes tax effect of $7.7 million and $17.3 million on tax-exempt investment securities income for the nine months ended September 30, 2018 and 2017, respectively.
⁴Includes tax effect of $913 thousand and $981 thousand on federal income tax credits for the nine months ended September 30, 2018 and 2017, respectively.
⁵Wholesale 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)	Sep 30, 2018			Jun 30, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2018		Dec 31, 2017		Sep 30, 2017

Custom and owner occupied construction	$	123,369		$	138,171		$	109,555		$	106,615		(11	)%	13	%	16	%
Pre-sold and spec construction	109,214			96,008			72,160			82,023			14	%	51	%	33	%
Total residential construction	232,583			234,179			181,715			188,638			(1	)%	28	%	23	%
Land development	125,272			108,641			82,398			83,414			15	%	52	%	50	%
Consumer land or lots	123,979			110,846			102,289			99,866			12	%	21	%	24	%
Unimproved land	75,183			72,150			65,753			64,610			4	%	14	%	16	%
Developed lots for operative builders	14,922			12,708			14,592			12,830			17	%	2	%	16	%
Commercial lots	30,255			27,661			23,770			25,984			9	%	27	%	16	%
Other construction	487,428			478,037			391,835			367,060			2	%	24	%	33	%
Total land, lot, and other construction	857,039			810,043			680,637			653,764			6	%	26	%	31	%

Owner occupied	1,330,024			1,302,737			1,132,833			1,109,796			2	%	17	%	20	%
Non-owner occupied	1,564,182			1,495,532			1,186,066			1,180,976			5	%	32	%	32	%
Total commercial real estate	2,894,206			2,798,269			2,318,899			2,290,772			3	%	25	%	26	%

Commercial and industrial	884,414			909,688			751,221			766,970			(3	)%	18	%	15	%

Agriculture	672,916			661,218			450,616			468,168			2	%	49	%	44	%

1st lien	1,109,308			1,072,917			877,335			873,061			3	%	26	%	27	%
Junior lien	59,345			64,821			51,155			53,337			(8	)%	16	%	11	%
Total 1-4 family	1,168,653			1,137,738			928,490			926,398			3	%	26	%	26	%

Multifamily residential	222,647			218,061			189,342			185,891			2	%	18	%	20	%

Home equity lines of credit	521,778			500,036			440,105			429,483			4	%	19	%	21	%
Other consumer	166,788			164,288			148,247			153,363			2	%	13	%	9	%
Total consumer	688,566			664,324			588,352			582,846			4	%	17	%	18	%

States and political subdivisions	429,409			419,025			383,252			351,869			2	%	12	%	22	%

Other	123,461			149,915			144,133			142,826			(18	)%	(14	)%	(14	)%
Total loans receivable, including loans held for sale	8,173,894			8,002,460			6,616,657			6,558,142			2	%	24	%	25	%

Less loans held for sale ¹	(50,649		)	(53,788		)	(38,833		)	(48,709		)	(6	)%	30	%	4	%

Total loans receivable	$	8,123,245		$	7,948,672		$	6,577,824		$	6,509,433		2	%	23	%	25	%

______________________________
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)	Sep 30, 2018		Jun 30, 2018	Dec 31, 2017	Sep 30, 2017	Sep 30, 2018	Sep 30, 2018	Sep 30, 2018
Custom and owner occupied construction	$	1,599	48	48	177	—	1,599	—
Pre-sold and spec construction	474		492	38	267	474	—	—
Total residential construction	2,073		540	86	444	474	1,599	—

Land development	5,147		7,564	7,888	8,116	843	—	4,304
Consumer land or lots	1,592		1,593	1,861	2,451	526	—	1,066
Unimproved land	9,815		9,962	10,866	10,320	8,307	28	1,480
Developed lots for operative builders	68		126	116	116	43	—	25
Commercial lots	1,046		1,059	1,312	1,374	—	—	1,046
Other construction	147		155	151	151	9	—	138
Total land, lot and other construction	17,815		20,459	22,194	22,528	9,728	28	8,059

Owner occupied	11,246		12,891	13,848	14,207	9,978	34	1,234
Non-owner occupied	10,847		15,337	4,584	4,251	10,574	—	273
Total commercial real estate	22,093		28,228	18,432	18,458	20,552	34	1,507

Commercial and industrial	5,615		7,692	5,294	5,190	4,956	409	250

Agriculture	7,856		10,497	3,931	3,998	6,804	1,052	—

1st lien	9,543		9,725	9,261	7,688	8,922	528	93
Junior lien	2,610		3,257	567	591	709	—	1,901
Total 1-4 family	12,153		12,982	9,828	8,279	9,631	528	1,994

Multifamily residential	613		634	—	—	613	—	—

Home equity lines of credit	3,470		3,112	3,292	4,151	2,397	508	565
Other consumer	417		393	322	225	218	175	24
Total consumer	3,887		3,505	3,614	4,376	2,615	683	589
States and political subdivisions	—		—	1,800	1,800	—	—	—

Total	$	72,105	84,537	65,179	65,073	55,373	4,333	12,399

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

	Accruing 30-89 Days Delinquent Loans, by Loan Type								% Change from
(Dollars in thousands)	Sep 30, 2018		Jun 30, 2018		Dec 31, 2017		Sep 30, 2017		Jun 30, 2018		Dec 31, 2017		Sep 30, 2017
Custom and owner occupied construction	$	4,502	$	1,525	$	300	$	415	195	%	1,401	%	985	%
Pre-sold and spec construction	494		721		102		451		(31	)%	384	%	10	%
Total residential construction	4,996		2,246		402		866		122	%	1,143	%	477	%

Land development	516		728		—		5		(29	)%	n/m		10,220	%
Consumer land or lots	235		471		353		615		(50	)%	(33	)%	(62	)%
Unimproved land	629		1,450		662		621		(57	)%	(5	)%	1	%
Developed lots for operative builders	—		—		7		—		n/m		(100	)%	n/m
Commercial lots	—		—		108		15		n/m		(100	)%	(100	)%
Other construction	—		—		—		—		n/m		n/m		n/m
Total land, lot and other construction	1,380		2,649		1,130		1,256		(48	)%	22	%	10	%

Owner occupied	2,872		3,571		4,726		4,450		(20	)%	(39	)%	(35	)%
Non-owner occupied	1,131		8,414		2,399		5,502		(87	)%	(53	)%	(79	)%
Total commercial real estate	4,003		11,985		7,125		9,952		(67	)%	(44	)%	(60	)%

Commercial and industrial	4,791		5,745		6,472		5,784		(17	)%	(26	)%	(17	)%

Agriculture	1,332		5,288		3,205		780		(75	)%	(58	)%	71	%

1st lien	3,795		5,132		10,865		2,973		(26	)%	(65	)%	28	%
Junior lien	420		989		4,348		3,463		(58	)%	(90	)%	(88	)%
Total 1-4 family	4,215		6,121		15,213		6,436		(31	)%	(72	)%	(35	)%

Multifamily Residential	—		—		—		237		n/m		n/m		(100	)%

Home equity lines of credit	2,467		3,940		1,962		2,065		(37	)%	26	%	19	%
Other consumer	1,903		1,665		2,109		1,735		14	%	(10	)%	10	%
Total consumer	4,370		5,605		4,071		3,800		(22	)%	7	%	15	%

Other	94		11		69		4		755	%	36	%	2,250	%

Total	$	25,181	$	39,650	$	37,687	$	29,115	(36	)%	(33	)%	(14	)%

______________________________
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)	Sep 30, 2018			Jun 30, 2018		Dec 31, 2017		Sep 30, 2017		Sep 30, 2018	Sep 30, 2018

Custom and owner occupied construction	$	—		—		—		58		—	—
Pre-sold and spec construction	(348		)	(344	)	(23	)	(19	)	17	365
Total residential construction	(348		)	(344	)	(23	)	39		17	365

Land development	(110		)	(107	)	(143	)	(67	)	—	110
Consumer land or lots	(121		)	(92	)	222		(150	)	206	327
Unimproved land	(288		)	(144	)	(304	)	(177	)	—	288
Developed lots for operative builders	33			33		(107	)	(16	)	33	—
Commercial lots	3			4		(6	)	(4	)	7	4
Other construction	(4		)	—		389		390		—	4
Total land, lot and other construction	(487		)	(306	)	51		(24	)	246	733

Owner occupied	902			1,000		3,908		3,416		1,084	182
Non-owner occupied	(6		)	(4	)	368		214		59	65
Total commercial real estate	896			996		4,276		3,630		1,143	247

Commercial and industrial	1,893			1,471		883		429		2,527	634

Agriculture	39			44		9		(11	)	50	11

1st lien	8			(193	)	(23	)	(201	)	257	249
Junior lien	486			(34	)	719		746		959	473
Total 1-4 family	494			(227	)	696		545		1,216	722

Multifamily residential	(6		)	(6	)	(230	)	(229	)	—	6

Home equity lines of credit	(39		)	(38	)	272		262		101	140
Other consumer	161			111		505		98		381	220
Total consumer	122			73		777		360		482	360

Other	3,137			1,816		4,389		3,195		6,224	3,087

Total	$	5,740		3,517		10,828		7,934		11,905	6,165

Visit our website at www.glacierbancorp.com

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

Glacier Bancorp, Inc. Announces Results for the Quarter Ended September 30, 2018