Glacier Bancorp, Inc. Announces Results for the Quarter Ended June 30, 2019

Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $52.4 million for the current quarter, an increase of $8.0 million, or 18 percent, from the $44.4 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.61 per share, an increase of 17 percent from the prior year second quarter diluted earnings per share of $0.52. Included in the current quarter was $1.8 million of acquisition-related expenses. “We saw excellent loan growth this quarter supported by a stable net interest margin, consistent credit performance and efficiency at targeted levels. Growth in earnings per share and interest income were strong,” said Randy Chesler, President and Chief Executive Officer. “Hats off to the Glacier divisions for delivering another quarter of strong results and we welcome First Community Bank Utah to the Glacier team.”

Net income for the first six months ended June 30, 2019 was $101.5 million, an increase of $18.6 million, or 22 percent, from the $82.9 million of net income for the first six months of the prior year. Diluted earnings per share for the first half of the current year was $1.19 per share, an increase of $0.19, or 19 percent, from the diluted earnings per share of $1.00 for the same period in the prior year.

In the second quarter of 2019, the Company announced the signing of a definitive agreement to acquire Heritage Bancorp, the bank holding company for Heritage Bank of Nevada, a community bank based in Reno, Nevada (collectively, “Heritage”). Heritage provides banking services to individuals and businesses throughout Northern Nevada with seven banking offices located in Carson City, Gardnerville, Reno and Sparks. As of June 30, 2019, Heritage had total assets of $842 million, gross loans of $612 million and total deposits of $717 million. The acquisition has received the required regulatory approvals, is subject to other customary conditions of closing and is expected to be completed effective July 31, 2019. Upon closing of the transaction, Heritage will become the Company’s sixteenth Bank division.

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”). FNB provides banking services to individuals and businesses throughout Utah with six banking offices located in Layton, Bountiful, Clearfield, and Draper. Upon closing of the transaction, FNB became First Community Bank Utah, the Company’s fifteenth Bank division. The Company’s results of operations and financial condition include the acquisition beginning on the acquisition date and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:

	FNB
(Dollars in thousands)	April 30, 2019
Total assets	$	379,155
Debt securities	47,247
Loans receivable	245,485
Non-interest bearing deposits	93,647
Interest bearing deposits	180,999
Borrowings	7,273

Asset Summary

										$ Change from
(Dollars in thousands)	Jun 30, 2019			Mar 31, 2019		Dec 31, 2018		Jun 30, 2018		Mar 31, 2019		Dec 31, 2018		Jun 30, 2018
Cash and cash equivalents	$	231,209		202,527		203,790		368,132		28,682		27,419		(136,923	)
Debt securities, available-for-sale	2,470,634			2,522,322		2,571,663		2,177,352		(51,688	)	(101,029	)	293,282
Debt securities, held-to-maturity	252,097			255,572		297,915		620,409		(3,475	)	(45,818	)	(368,312	)
Total debt securities	2,722,731			2,777,894		2,869,578		2,797,761		(55,163	)	(146,847	)	(75,030	)
Loans receivable
Residential real estate	920,715			884,732		887,742		835,382		35,983		32,973		85,333
Commercial real estate	4,959,863			4,686,082		4,657,561		4,384,781		273,781		302,302		575,082
Other commercial	2,076,605			1,909,452		1,911,171		1,940,435		167,153		165,434		136,170
Home equity	596,041			562,381		544,688		511,043		33,660		51,353		84,998
Other consumer	288,553			283,423		286,387		277,031		5,130		2,166		11,522
Loans receivable	8,841,777			8,326,070		8,287,549		7,948,672		515,707		554,228		893,105
Allowance for loan and lease losses	(129,054		)	(129,786	)	(131,239	)	(131,564	)	732		2,185		2,510
Loans receivable, net	8,712,723			8,196,284		8,156,310		7,817,108		516,439		556,413		895,615
Other assets	1,009,698			897,074		885,806		914,643		112,624		123,892		95,055
Total assets	$	12,676,361		12,073,779		12,115,484		11,897,644		602,582		560,877		778,717

Total debt securities of $2.723 billion at June 30, 2019 decreased $55.2 million, or 2 percent, during the current quarter and decreased $75.0 million, or 3 percent, from the prior year second quarter. Debt securities represented 21 percent of total assets at June 30, 2019 compared to 24 percent of total assets at December 31, 2018 and June 30, 2018.

The loan portfolio of $8.842 billion increased $270 million, or 13 percent annualized, during the current quarter excluding the FNB acquisition. The loan category with the largest increase was other commercial loans which increased $114 million, or 6 percent. Excluding the acquisition, the loan portfolio increased $648 million, or 8 percent, since June 30, 2018, with the largest increase in commercial real estate loans, which increased $397 million, or 9 percent.

Credit Quality Summary

	At or for the Six Months ended			At or for the Three Months ended		At or for the Year ended		At or for the Six Months ended
(Dollars in thousands)	Jun 30, 2019			Mar 31, 2019		Dec 31, 2018		Jun 30, 2018
Allowance for loan and lease losses
Balance at beginning of period	$	131,239		131,239		129,568		129,568
Provision for loan losses	57			57		9,953		5,513
Charge-offs	(6,200		)	(3,341	)	(17,807	)	(7,611	)
Recoveries	3,958			1,831		9,525		4,094
Balance at end of period	$	129,054		129,786		131,239		131,564
Other real estate owned	$	7,281		8,125		7,480		13,616
Accruing loans 90 days or more past due	3,463			2,451		2,018		12,751
Non-accrual loans	41,195			40,269		47,252		58,170
Total non-performing assets	$	51,939		50,845		56,750		84,537
Non-performing assets as a percentage of subsidiary assets	0.41		%	0.42	%	0.47	%	0.71	%
Allowance for loan and lease losses as a percentage of non-performing loans	289		%	304	%	266	%	186	%
Allowance for loan and lease losses as a percentage of total loans	1.46		%	1.56	%	1.58	%	1.66	%
Net charge-offs as a percentage of total loans	0.03		%	0.02	%	0.10	%	0.04	%
Accruing loans 30-89 days past due	$	37,937		36,894		33,567		39,650
Accruing troubled debt restructurings	$	25,019		24,468		25,833		34,991
Non-accrual troubled debt restructurings	$	6,041		6,747		10,660		18,380
U.S. government guarantees included in non-performing assets	$	2,785		2,649		4,811		7,265

Non-performing assets of $51.9 million at June 30, 2019 increased $1.1 million, or 2 percent, over the prior quarter and decreased $32.6 million, or 39 percent, over the prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2019 was 0.41 percent, a decrease of 1 basis point from the prior quarter, and a decrease of 30 basis points from the prior year second quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $37.9 million at June 30, 2019 increased $1.0 million from the prior quarter and decreased $1.7 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2019 was 0.43 percent, which was a decrease of 1 basis point from prior quarter and a decrease of 7 basis points from prior year second quarter. The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at June 30, 2019 was 1.46 percent, which was a 10 basis points decrease compared to the prior quarter and a decrease of 20 basis points from a year ago. The decrease was attributable to stabilizing credit quality and the addition of loans from the FNB acquisition 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)	Provisionfor LoanLosses		Net Charge-Offs		ALLLas a Percentof Loans		AccruingLoans 30-89Days Past Dueas a Percent ofLoans		Non-PerformingAssets toTotal SubsidiaryAssets
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	%
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	%

Net charge-offs for the current quarter were $732 thousand compared to $1.5 million for the prior quarter and $762 thousand from the same quarter last year. There was no current quarter provision for loan losses compared to $57 thousand in the prior quarter and $4.7 million in the prior year second 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)	Jun 30, 2019		Mar 31, 2019	Dec 31, 2018	Jun 30, 2018	Mar 31, 2019		Dec 31, 2018		Jun 30, 2018
Deposits
Non-interest bearing deposits	$	3,265,077	3,051,119	3,001,178	2,914,885	213,958		263,899		350,192
NOW and DDA accounts	2,487,806		2,383,806	2,391,307	2,354,214	104,000		96,499		133,592
Savings accounts	1,412,046		1,373,544	1,346,790	1,330,637	38,502		65,256		81,409
Money market deposit accounts	1,647,372		1,689,962	1,684,284	1,723,681	(42,590	)	(36,912	)	(76,309	)
Certificate accounts	897,625		896,731	901,484	927,608	894		(3,859	)	(29,983	)
Core deposits, total	9,709,926		9,395,162	9,325,043	9,251,025	314,764		384,883		458,901
Wholesale deposits	144,949		192,953	168,724	172,550	(48,004	)	(23,775	)	(27,601	)
Deposits, total	9,854,875		9,588,115	9,493,767	9,423,575	266,760		361,108		431,300
Repurchase agreements	494,651		489,620	396,151	361,515	5,031		98,500		133,136
Federal Home Loan Bank advances	319,996		154,683	440,175	395,037	165,313		(120,179	)	(75,041	)
Other borrowed funds	14,765		14,738	14,708	9,917	27		57		4,848
Subordinated debentures	139,912		134,048	134,051	134,058	5,864		5,861		5,854
Other liabilities	164,786		141,725	120,778	99,550	23,061		44,008		65,236
Total liabilities	$	10,988,985	10,522,929	10,599,630	10,423,652	466,056		389,355		565,333

Excluding the acquisition, core deposits of $9.710 billion as of June 30, 2019 increased $110 million, or 2 percent annualized, from the prior quarter and increased $184 million, or 2 percent, from the prior year second quarter. Non-interest bearing deposits organically increased $120 million, or 16 percent annualized, over the prior quarter and increased $257 million, or 9 percent, over the prior year second quarter.

Federal Home Loan Bank (“FHLB”) advances of $320 million at June 30, 2019, increased $165 million over the prior quarter and decreased $75.0 million over the prior year second quarter. FHLB advances and wholesale deposits will continue to fluctuate to supplement liquidity needs during the year.

Stockholders’ Equity Summary

										$ Change from
(Dollars in thousands, except per share data)	Jun 30, 2019			Mar 31, 2019		Dec 31, 2018		Jun 30, 2018		Mar 31, 2019		Dec 31, 2018		Jun 30, 2018
Common equity	$	1,643,928		1,526,963		1,525,281		1,494,274		116,965		118,647		149,654
Accumulated other comprehensive income (loss)	43,448			23,887		(9,427	)	(20,282	)	19,561		52,875		63,730
Total stockholders’ equity	1,687,376			1,550,850		1,515,854		1,473,992		136,526		171,522		213,384
Goodwill and core deposit intangible, net	(385,533		)	(337,134	)	(338,828	)	(342,243	)	(48,399	)	(46,705	)	(43,290	)
Tangible stockholders’ equity	$	1,301,843		1,213,716		1,177,026		1,131,749		88,127		124,817		170,094

Stockholders’ equity to total assets	13.31		%	12.84	%	12.51	%	12.39	%
Tangible stockholders’ equity to total tangible assets	10.59		%	10.34	%	9.99	%	9.79	%
Book value per common share	$	19.48		18.33		17.93		17.44		1.15	1.55	2.04
Tangible book value per common share	$	15.03		14.35		13.93		13.39		0.68	1.10	1.64

Tangible stockholders’ equity of $1.302 billion at June 30, 2019 increased $88.1 million compared to the prior quarter which was the result of $87.1 million of Company stock issued for the acquisition of FNB, earnings retention and an increase in other comprehensive income; such increases more than offset the increase in goodwill and core deposits associated with the acquisition. Tangible stockholders’ equity increased $170 million over the prior year second quarter which was the result of earnings retention, an increase in other comprehensive income, and the impact from the FNB acquisition which was offset by a decrease of $25.5 million from the cumulative-effect adjustments related to the adoption of new accounting standards. Tangible book value per common share of $15.03 at current quarter end increased $0.68 per share from the prior quarter and increased $1.64 per share from a year ago.

Cash DividendsOn June 25, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.27 per share. The dividend was payable July 18, 2019 to shareholders of record on July 9, 2019. The dividend was the 137th consecutive quarterly dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended June 30, 2019Compared to March 31, 2019, and June 30, 2018

Income Summary

	Three Months ended							$ Change from
(Dollars in thousands)	Jun 30, 2019			Mar 31, 2019		Jun 30, 2018		Mar 31, 2019		Jun 30, 2018
Net interest income
Interest income	$	132,385		126,116		117,715		6,269		14,670
Interest expense	12,089			10,904		9,161		1,185		2,928
Total net interest income	120,296			115,212		108,554		5,084		11,742
Non-interest income
Service charges and other fees	20,025			18,015		18,804		2,010		1,221
Miscellaneous loan fees and charges	1,192			967		2,243		225		(1,051	)
Gain on sale of loans	7,762			5,798		8,142		1,964		(380	)
Gain (loss) on sale of investments	134			213		(56	)	(79	)	190
Other income	1,721			3,481		2,695		(1,760	)	(974	)
Total non-interest income	30,834			28,474		31,828		2,360		(994	)
Total income	$	151,130		143,686		140,382		7,444		10,748
Net interest margin (tax-equivalent)	4.33		%	4.34	%	4.17	%

Net Interest IncomeThe current quarter net interest income of $120 million increased $5.1 million, or 4 percent, over the prior quarter and increased $11.7 million, or 11 percent, from the prior year second quarter. The increase in net interest income over the prior quarter and prior year second quarter was primarily driven by an increase in interest income on commercial loans. Interest income on commercial loans increased $4.5 million, or 5 percent, from the prior quarter and increased $12.2 million, or 16 percent, from the prior year second quarter.

The current quarter interest expense of $12.1 million increased $1.2 million, or 11 percent, over the prior quarter which was driven by the increase in FHLB advances which supplemented the liquidity needs during the current quarter. The current quarter interest expense increased $3.0 million, or 32 percent, from the prior year second quarter and was primarily due to the increased amount of deposits and borrowings. The total cost of funding (including non-interest bearing deposits) for the current quarter was 45 basis points compared to 43 basis points for the prior quarter and 36 basis points for the prior year second quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.33 percent compared to 4.34 percent in the prior quarter. The yield on loans increased 2 basis points and was offset by the 2 basis points increase in funding cost related to the increased short-term borrowings while the cost of core deposits remained unchanged. The current quarter net interest margin included 5 basis points of discount accretion on acquired loans compared to 6 basis points in the prior quarter. The current quarter also included 1 basis point from the recovery of interest on loans previously placed on non-accrual compared to 2 basis points in the prior quarter. Excluding the 5 basis points from discount accretion and 1 basis point from non-accrual interest, the core net interest margin was 4.27 percent compared to 4.26 in the prior quarter and 4.11 percent in the prior year ago second quarter. The current quarter net interest margin increased 16 basis points over the prior year second quarter net interest margin of 4.17 percent. The increase in the margin from the prior year second quarter resulted from the remix of earning assets to higher yielding loans and the increased yields on the loan portfolio which more than offset the increase in funding costs. “The stable net interest margin reflects discipline in loan pricing by each of the Bank divisions,” said Ron Copher, Chief Financial Officer. “In addition, the Bank divisions continue to focus on growing a low-cost core deposit base, especially non-interest bearing deposits.”

Non-interest IncomeNon-interest income for the current quarter totaled $30.8 million which was an increase of $2.4 million, or 8 percent, over the prior quarter and a decrease of $994 thousand, or 3 percent, over the same quarter last year. Service charges and other fees of $20.0 million for the current quarter increased $2.0 million, or 11 percent, from the prior quarter due primarily to seasonality. Service charges and other fees for the current quarter increased $1.2 million, or 6 percent, from the prior year second quarter which was due to the increased number of accounts driven by organic growth. Gain on the sale of loans of $7.8 million, increased $2.0 million, or 34 percent, compared to the prior quarter as a result of seasonality.

Non-interest Expense Summary

	Three Months ended				$ Change from
(Dollars in thousands)	Jun 30, 2019		Mar 31, 2019	Jun 30, 2018	Mar 31, 2019		Jun 30, 2018
Compensation and employee benefits	$	51,973	52,728	49,023	(755	)	2,950
Occupancy and equipment	8,180		8,437	7,662	(257	)	518
Advertising and promotions	2,767		2,388	2,530	379		237
Data processing	4,062		3,892	4,241	170		(179	)
Other real estate owned	191		139	211	52		(20	)
Regulatory assessments and insurance	1,848		1,285	1,329	563		519
Core deposit intangibles amortization	1,865		1,694	1,748	171		117
Other expenses	15,284		12,267	15,051	3,017		233
Total non-interest expense	$	86,170	82,830	81,795	3,340		4,375

Total non-interest expense of $86.2 million for the current quarter increased $3.3 million, or 4 percent, over the prior quarter and increased $4.4 million, or 5 percent, over the prior year second quarter. Compensation and employee benefits increased by $2.9 million, or 6 percent, from the prior year second quarter due to the acquisition and an increased number of employees driven by organic growth. Occupancy and equipment expense increased $518 thousand or 7 percent, over the prior year second quarter as a result of the current year acquisition and general cost increases. Other expenses of $15.3 million, increased $3.0 million, or 25 percent, from the prior quarter and was primarily attributable to acquisition-related expenses. Acquisition-related expenses were $1.8 million during the current quarter compared to $214 thousand in the prior quarter and $2.9 million in the prior year second quarter.

Federal and State Income Tax ExpenseTax expense during the second quarter of 2019 was $12.6 million, an increase of $901 thousand, or 8 percent, compared to the prior quarter and an increase of $3.1 million, or 33 percent, from the prior year second quarter. The effective tax rate in the current and prior quarter was 19 percent which compares to 19 percent in the prior quarter and 18 percent in the prior year second quarter.

Efficiency RatioThe current quarter efficiency ratio was 54.50 percent, an 87 basis points improvement from the prior quarter efficiency ratio of 55.37 percent and was driven by controlling operating costs combined with the increase in net interest income. The current quarter efficiency ratio improved 94 basis points from the prior year second quarter efficiency ratio of 55.44 percent and was driven by the increase in net interest income that more than offset the increased operating costs as a result of the Company’s growth.

Operating Results for Six Months Ended June 30, 2019Compared to June 30, 2018

Income Summary

	Six Months ended
(Dollars in thousands)	Jun 30, 2019			Jun 30, 2018			$ Change			% Change
Net interest income
Interest income	$	258,501		$	220,781		$	37,720		17	%
Interest expense	22,993			16,935			6,058			36	%
Total net interest income	235,508			203,846			31,662			16	%
Non-interest income
Service charges and other fees	38,040			35,675			2,365			7	%
Miscellaneous loan fees and charges	2,159			3,720			(1,561		)	(42	)%
Gain on sale of loans	13,560			14,239			(679		)	(5	)%
Loss on sale of investments	347			(389		)	736			(189	)%
Other income	5,202			4,669			533			11	%
Total non-interest income	59,308			57,914			1,394			2	%
	$	294,816		$	261,760		$	33,056		13	%
Net interest margin (tax-equivalent)	4.33		%	4.14		%

Net Interest IncomeNet interest income for the first six months of 2019 increased $31.7 million, or 16 percent, from the first six months of 2018 and was primarily attributable to a $30.2 million increase in interest income from commercial loans. Interest expense of $23.0 million for the first half of 2019 increased $6.1 million, or 36 percent over the prior year same period as a result of increased deposits and borrowings combined with interest rate increases. The total funding cost (including non-interest bearing deposits) for 2019 was 44 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 the first six months of 2019 was 4.33 percent, a 19 basis points increase from the net interest margin of 4.14 percent for the first half of 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 combined with relatively stable cost of funds.

Non-interest IncomeNon-interest income of $59.3 million for the first six months of 2019 increased $1.4 million, or 2 percent, over the same period last year. Service charges and other fees of $38.0 million for 2019 increased $2.4 million, or 7 percent, from the prior year as a result of an increased number of deposit accounts from organic growth and acquisitions.

Non-interest Expense Summary

	Six Months ended
(Dollars in thousands)	Jun 30, 2019		Jun 30, 2018		$ Change			% Change
Compensation and employee benefits	$	104,701	$	94,744	$	9,957		11	%
Occupancy and equipment	16,617		14,936		1,681			11	%
Advertising and promotions	5,155		4,700		455			10	%
Data processing	7,954		8,208		(254		)	(3	)%
Other real estate owned	330		283		47			17	%
Regulatory assessments and insurance	3,133		2,535		598			24	%
Core deposit intangibles amortization	3,559		2,804		755			27	%
Other expenses	27,551		27,212		339			1	%
Total non-interest expense	$	169,000	$	155,422	$	13,578		9	%

Total non-interest expense of $169 million for the first half of 2019 increased $13.6 million, or 9 percent, over the prior year first half. Compensation and employee benefits for the first six months of 2019 increased $10.0 million, or 11 percent, from the same period last year due to the increased number of employees from acquisitions and organic growth combined with annual salary increases. Occupancy and equipment expense for the first half of 2019 increased $1.7 million, or 11 percent from the prior year as a result of increased cost from acquisitions and general cost increases.

Provision for Loan LossesThe provision for loan losses was $57 thousand for the first half of 2019, a decrease of $4.7 million from the same period in the prior year. Net charge-offs during the first half of 2019 were $2.2 million compared to $3.5 million during the same period in 2018.

Federal and State Income Tax ExpenseTax expense of $24.2 million in the first half of 2019 increased $6.4 million, or 36 percent, over the prior year same period. The effective tax rate year-to-date in 2019 was 19 percent compared to 18 percent in the prior year same period.

Efficiency RatioThe efficiency ratio of 54.93 percent for the first six months of 2019 improved 161 basis points from the prior year first six months efficiency ratio of 56.54 percent and was driven by the increase in net interest income that more than offset the increased operating costs.

Forward-Looking StatementsThis 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, July 19, 2019. 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 7382835. To participate on the webcast, log on to: https://edge.media-server.com/m6/p/g6hp4cea. 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 7382835 by August 2, 2019.

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 operating 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; The Foothills Bank, Yuma, operating in Arizona; and First Community Bank Utah, Layton, operating in Utah.

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

(Dollars in thousands, except per share data)	June 30, 2019			March 31, 2019		December 31, 2018		June 30, 2018
Assets
Cash on hand and in banks	$	181,526		139,333		161,782		174,239
Federal funds sold	—			115		—		—
Interest bearing cash deposits	49,683			63,079		42,008		193,893
Cash and cash equivalents	231,209			202,527		203,790		368,132
Debt securities, available-for-sale	2,470,634			2,522,322		2,571,663		2,177,352
Debt securities, held-to-maturity	252,097			255,572		297,915		620,409
Total debt securities	2,722,731			2,777,894		2,869,578		2,797,761
Loans held for sale, at fair value	54,711			29,389		33,156		53,788
Loans receivable	8,841,777			8,326,070		8,287,549		7,948,672
Allowance for loan and lease losses	(129,054		)	(129,786	)	(131,239	)	(131,564	)
Loans receivable, net	8,712,723			8,196,284		8,156,310		7,817,108
Premises and equipment, net	296,915			277,619		241,528		240,373
Other real estate owned	7,281			8,125		7,480		13,616
Accrued interest receivable	58,567			57,367		54,408		55,973
Deferred tax asset	3,371			12,554		23,564		34,211
Core deposit intangible, net	54,646			47,548		49,242		52,708
Goodwill	330,887			289,586		289,586		289,535
Non-marketable equity securities	23,031			16,435		27,871		26,107
Bank-owned life insurance	93,543			82,819		82,320		81,379
Other assets	86,746			75,632		76,651		66,953
Total assets	$	12,676,361		12,073,779		12,115,484		11,897,644
Liabilities
Non-interest bearing deposits	$	3,265,077		3,051,119		3,001,178		2,914,885
Interest bearing deposits	6,589,798			6,536,996		6,492,589		6,508,690
Securities sold under agreements to repurchase	494,651			489,620		396,151		361,515
FHLB advances	319,996			154,683		440,175		395,037
Other borrowed funds	14,765			14,738		14,708		9,917
Subordinated debentures	139,912			134,048		134,051		134,058
Accrued interest payable	5,091			4,709		4,252		3,952
Other liabilities	159,695			137,016		116,526		95,598
Total liabilities	10,988,985			10,522,929		10,599,630		10,423,652
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	866			846		845		845
Paid-in capital	1,139,289			1,051,299		1,051,253		1,049,724
Retained earnings - substantially restricted	503,773			474,818		473,183		443,705
Accumulated other comprehensive income (loss)	43,448			23,887		(9,427	)	(20,282	)
Total stockholders’ equity	1,687,376			1,550,850		1,515,854		1,473,992
Total liabilities and stockholders’ equity	$	12,676,361		12,073,779		12,115,484		11,897,644

Glacier Bancorp, Inc.Unaudited Condensed Consolidated Statements of Operations

	Three Months ended					Six Months ended
(Dollars in thousands, except per share data)	June 30, 2019		March 31, 2019	June 30, 2018		June 30, 2019	June 30, 2018
Interest Income
Debt securities	$	21,892	21,351	22,370		43,243	42,512
Residential real estate loans	11,410		10,779	10,149		22,189	18,934
Commercial loans	88,043		83,539	75,824		171,582	141,339
Consumer and other loans	11,040		10,447	9,372		21,487	17,996
Total interest income	132,385		126,116	117,715		258,501	220,781
Interest Expense
Deposits	5,624		5,341	4,617		10,965	8,533
Securities sold under agreements to repurchase	886		802	486		1,688	971
Federal Home Loan Bank advances	3,847		3,055	2,513		6,902	4,602
Other borrowed funds	38		38	26		76	42
Subordinated debentures	1,694		1,668	1,519		3,362	2,787
Total interest expense	12,089		10,904	9,161		22,993	16,935
Net Interest Income	120,296		115,212	108,554		235,508	203,846
Provision for loan losses	—		57	4,718		57	5,513
Net interest income after provision for loan losses	120,296		115,155	103,836		235,451	198,333
Non-Interest Income
Service charges and other fees	20,025		18,015	18,804		38,040	35,675
Miscellaneous loan fees and charges	1,192		967	2,243		2,159	3,720
Gain on sale of loans	7,762		5,798	8,142		13,560	14,239
Gain (loss) on sale of debt securities	134		213	(56	)	347	(389	)
Other income	1,721		3,481	2,695		5,202	4,669
Total non-interest income	30,834		28,474	31,828		59,308	57,914
Non-Interest Expense
Compensation and employee benefits	51,973		52,728	49,023		104,701	94,744
Occupancy and equipment	8,180		8,437	7,662		16,617	14,936
Advertising and promotions	2,767		2,388	2,530		5,155	4,700
Data processing	4,062		3,892	4,241		7,954	8,208
Other real estate owned	191		139	211		330	283
Regulatory assessments and insurance	1,848		1,285	1,329		3,133	2,535
Core deposit intangibles amortization	1,865		1,694	1,748		3,559	2,804
Other expenses	15,284		12,267	15,051		27,551	27,212
Total non-interest expense	86,170		82,830	81,795		169,000	155,422
Income Before Income Taxes	64,960		60,799	53,869		125,759	100,825
Federal and state income tax expense	12,568		11,667	9,485		24,235	17,882
Net Income	$	52,392	49,132	44,384		101,524	82,943

Glacier Bancorp, Inc.Average Balance Sheets

	Three Months ended

	6/30/2019								3/31/2019
(Dollars in thousands)
	Average Balance		Interest & Dividends			Average Yield/ Rate			Average Balance			Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	938,467		$	11,410		4.86	%		$	917,324		$	10,779		4.70	%
Commercial loans 1	6,803,541			89,191			5.26	%		6,524,190			84,613			5.26	%
Consumer and other loans	868,733			11,040			5.10	%		839,011			10,447			5.05	%
Total loans 2	8,610,741			111,641			5.20	%		8,280,525			105,839			5.18	%
Tax-exempt debt securities 3	957,177			9,982			4.17	%		960,569			9,950			4.14	%
Taxable debt securities 4	1,911,173			14,246			2.98	%		1,845,677			13,729			2.98	%
Total earning assets	11,479,091			135,869			4.75	%		11,086,771			129,518			4.74	%
Goodwill and intangibles	351,466									337,963
Non-earning assets	584,459									520,353
Total assets	$	12,415,016								$	11,945,087
Liabilities
Non-interest bearing deposits	$	3,084,404		$	—		—	%		$	2,943,770		$	—		—	%
NOW and DDA accounts	2,394,505			985			0.17	%		2,320,928			961			0.17	%
Savings accounts	1,389,548			253			0.07	%		1,359,807			234			0.07	%
Money market deposit accounts	1,662,545			1,125			0.27	%		1,690,305			1,010			0.24	%
Certificate accounts	902,134			2,222			0.99	%		905,005			2,014			0.90	%
Total core deposits	9,433,136			4,585			0.19	%		9,219,815			4,219			0.19	%
Wholesale deposits 5	162,495			1,039			2.56	%		169,361			1,122			2.69	%
FHLB advances	476,204			3,847			3.20	%		352,773			3,055			3.46	%
Repurchase agreements and other borrowed funds	593,990			2,618			1.77	%		556,325			2,508			1.83	%
Total funding liabilities	10,665,825			12,089			0.45	%		10,298,274			10,904			0.43	%
Other liabilities	109,480									116,143
Total liabilities	10,775,305									10,414,417
Stockholders’ Equity
Common stock	860									846
Paid-in capital	1,110,138									1,051,261
Retained earnings	500,015									471,626
Accumulated other comprehensive income	28,698									6,937
Total stockholders’ equity	1,639,711									1,530,670
Total liabilities and stockholders’ equity	$	12,415,016								$	11,945,087
Net interest income (tax-equivalent)				$	123,780								$	118,614
Net interest spread (tax-equivalent)							4.30	%								4.31	%
Net interest margin (tax-equivalent)							4.33	%								4.34	%

______________________________

1 Includes tax effect of $1.1 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2019 and March 31, 2019.2 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 $2.1 million and $2.0 million on tax-exempt debt securities income for the three months ended June 30, 2019 and March 31, 2019, respectively.4 Includes tax effect of $294 thousand and $293 thousand on federal income tax credits for the three months ended June 30, 2019 and March 31, 2019.5 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

	6/30/2019								6/30/2018
(Dollars in thousands)
	Average Balance		Interest & Dividends			Average Yield/ Rate			Average Balance				Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	938,467		$	11,410		4.86	%		$	874,839			$	10,149		4.64	%
Commercial loans 1	6,803,541			89,191			5.26	%		6,158,095				76,834			5.00	%
Consumer and other loans	868,733			11,040			5.10	%		761,751				9,372			4.93	%
Total loans 2	8,610,741			111,641			5.20	%		7,794,685				96,355			4.96	%
Tax-exempt debt securities 3	957,177			9,982			4.17	%		1,085,520				12,634			4.66	%
Taxable debt securities 4	1,911,173			14,246			2.98	%		1,931,846				12,630			2.62	%
Total earning assets	11,479,091			135,869			4.75	%		10,812,051				121,619			4.51	%
Goodwill and intangibles	351,466									343,201
Non-earning assets	584,459									473,750
Total assets	$	12,415,016								$	11,629,002
Liabilities
Non-interest bearing deposits	$	3,084,404		$	—		—	%		$	2,800,719			$	—		—	%
NOW and DDA accounts	2,394,505			985			0.17	%		2,316,927				1,009			0.17	%
Savings accounts	1,389,548			253			0.07	%		1,319,966				231			0.07	%
Money market deposit accounts	1,662,545			1,125			0.27	%		1,746,960				856			0.20	%
Certificate accounts	902,134			2,222			0.99	%		941,099				1,592			0.68	%
Total core deposits	9,433,136			4,585			0.19	%		9,125,671				3,688			0.16	%
Wholesale deposits 5	162,495			1,039			2.56	%		153,127				929			2.43	%
FHLB advances	476,204			3,847			3.20	%		290,391				2,513			3.42	%
Repurchase agreements and other borrowed funds	593,990			2,618			1.77	%		510,636				2,031			1.60	%
Total funding liabilities	10,665,825			12,089			0.45	%		10,079,825				9,161			0.36	%
Other liabilities	109,480									74,600
Total liabilities	10,775,305									10,154,425
Stockholders’ Equity
Common stock	860									845
Paid-in capital	1,110,138									1,049,270
Retained earnings	500,015									443,607
Accumulated other comprehensive income (loss)	28,698									(19,145		)
Total stockholders’ equity	1,639,711									1,474,577
Total liabilities and stockholders’ equity	$	12,415,016								$	11,629,002
Net interest income (tax-equivalent)				$	123,780									$	112,458
Net interest spread (tax-equivalent)							4.30	%									4.15	%
Net interest margin (tax-equivalent)							4.33	%									4.17	%

______________________________

1 Includes tax effect of $1.1 million and $1.0 million on tax-exempt municipal loan and lease income for the three months ended June 30, 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 $2.0 million and $2.6 million on tax-exempt debt securities income for the three months ended June 30, 2019 and 2018, respectively.4 Includes tax effect of $294 thousand and $305 thousand on federal income tax credits for the three months ended June 30, 2019 and 2018.5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.Average Balance Sheets (continued)

	Six Months ended

	6/30/2019								6/30/2018
(Dollars in thousands)
	Average Balance		Interest & Dividends			Average Yield/ Rate			Average Balance				Interest & Dividends			Average Yield/ Rate
Assets
Residential real estate loans	$	927,953		$	22,189		4.78	%		$	829,579			$	18,934		4.56	%
Commercial loans 1	6,664,637			173,804			5.26	%		5,856,533				143,308			4.93	%
Consumer and other loans	853,954			21,487			5.07	%		740,569				17,996			4.90	%
Total loans 2	8,446,544			217,480			5.19	%		7,426,681				180,238			4.89	%
Tax-exempt debt securities 3	958,864			19,932			4.16	%		1,089,605				25,429			4.67	%
Taxable debt securities 4	1,878,606			27,975			2.98	%		1,793,849				22,902			2.55	%
Total earning assets	11,284,014			265,387			4.74	%		10,310,135				228,569			4.47	%
Goodwill and intangibles	344,752									281,673
Non-earning assets	552,583									432,533
Total assets	$	12,181,349								$	11,024,341
Liabilities
Non-interest bearing deposits	$	3,014,476		$	—		—	%		$	2,637,342			$	—		—	%
NOW and DDA accounts	2,357,920			1,946			0.17	%		2,165,039				1,827			0.17	%
Savings accounts	1,374,759			487			0.07	%		1,252,760				423			0.07	%
Money market deposit accounts	1,676,348			2,135			0.26	%		1,689,730				1,576			0.19	%
Certificate accounts	903,562			4,236			0.95	%		908,940				2,911			0.65	%
Total core deposits	9,327,065			8,804			0.19	%		8,653,811				6,737			0.16	%
Wholesale deposits 5	165,909			2,161			2.63	%		151,362				1,796			2.39	%
FHLB advances	414,830			6,902			3.31	%		257,800				4,602			3.55	%
Repurchase agreements and other borrowed funds	575,262			5,126			1.80	%		516,108				3,800			1.48	%
Total funding liabilities	10,483,066			22,993			0.44	%		9,579,081				16,935			0.36	%
Other liabilities	112,793									50,421
Total liabilities	10,595,859									9,629,502
Stockholders’ Equity
Common stock	853									827
Paid-in capital	1,080,861									978,046
Retained earnings	485,898									432,143
Accumulated other comprehensive income (loss)	17,878									(16,177		)
Total stockholders’ equity	1,585,490									1,394,839
Total liabilities and stockholders’ equity	$	12,181,349								$	11,024,341
Net interest income (tax-equivalent)				$	242,394									$	211,634
Net interest spread (tax-equivalent)							4.30	%									4.11	%
Net interest margin (tax-equivalent)							4.33	%									4.14	%

______________________________

1 Includes tax effect of $2.2 million and $2.0 million on tax-exempt municipal loan and lease income for the six months ended June 30, 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 $4.1 million and $5.2 million on tax-exempt investment securities income for the six months ended June 30, 2019 and 2018, respectively.4 Includes tax effect of $587 thousand and $609 thousand on federal income tax credits for the six months ended June 30, 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)	Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Jun 30, 2018			Mar 31, 2019		Dec 31, 2018		Jun 30, 2018
Custom and owner occupied construction	$	140,186		$	126,820		$	126,595		$	138,171		11	%	11	%	1	%
Pre-sold and spec construction	171,464			135,137			121,938			96,008			27	%	41	%	79	%
Total residential construction	311,650			261,957			248,533			234,179			19	%	25	%	33	%
Land development	120,052			126,417			137,814			108,641			(5	)%	(13	)%	11	%
Consumer land or lots	128,544			125,818			127,775			110,846			2	%	1	%	16	%
Unimproved land	74,244			75,113			83,579			72,150			(1	)%	(11	)%	3	%
Developed lots for operative builders	14,117			16,171			17,061			12,708			(13	)%	(17	)%	11	%
Commercial lots	57,447			35,511			34,096			27,661			62	%	68	%	108	%
Other construction	453,782			454,965			520,005			478,037			—	%	(13	)%	(5	)%
Total land, lot, and other construction	848,186			833,995			920,330			810,043			2	%	(8	)%	5	%
Owner occupied	1,418,190			1,367,530			1,343,563			1,302,737			4	%	6	%	9	%
Non-owner occupied	1,780,988			1,662,390			1,605,960			1,495,532			7	%	11	%	19	%
Total commercial real estate	3,199,178			3,029,920			2,949,523			2,798,269			6	%	8	%	14	%
Commercial and industrial	1,024,828			922,124			907,340			909,688			11	%	13	%	13	%
Agriculture	697,893			641,146			646,822			661,218			9	%	8	%	6	%
1st lien	1,154,221			1,102,920			1,108,227			1,072,917			5	%	4	%	8	%
Junior lien	53,055			54,964			56,689			64,821			(3	)%	(6	)%	(18	)%
Total 1-4 family	1,207,276			1,157,884			1,164,916			1,137,738			4	%	4	%	6	%
Multifamily residential	278,539			268,156			247,457			218,061			4	%	13	%	28	%
Home equity lines of credit	592,355			557,895			539,938			500,036			6	%	10	%	18	%
Other consumer	167,964			163,568			165,865			164,288			3	%	1	%	2	%
Total consumer	760,319			721,463			705,803			664,324			5	%	8	%	14	%
States and political subdivisions	454,085			398,848			404,671			419,025			14	%	12	%	8	%
Other	114,534			119,966			125,310			149,915			(5	)%	(9	)%	(24	)%
Total loans receivable, including loans held for sale	8,896,488			8,355,459			8,320,705			8,002,460			6	%	7	%	11	%
Less loans held for sale 1	(54,711		)	(29,389		)	(33,156		)	(53,788		)	86	%	65	%	2	%
Total loans receivable	$	8,841,777		$	8,326,070		$	8,287,549		$	7,948,672		6	%	7	%	11	%

______________________________

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-AccrualLoans	AccruingLoans 90 Days or More Past Due	OtherReal EstateOwned
(Dollars in thousands)	Jun 30, 2019		Mar 31, 2019	Dec 31, 2018	Jun 30, 2018	Jun 30, 2019	Jun 30, 2019	Jun 30, 2019
Custom and owner occupied construction	$	283	—	—	48	—	283	—
Pre-sold and spec construction	1,261		456	463	492	1,261	—	—
Total residential construction	1,544		456	463	540	1,261	283	—
Land development	1,272		2,272	2,166	7,564	672	—	600
Consumer land or lots	1,075		1,126	1,428	1,593	615	—	460
Unimproved land	8,864		9,222	9,338	9,962	7,332	—	1,532
Developed lots for operative builders	—		67	68	126	—	—	—
Commercial lots	575		663	1,046	1,059	—	—	575
Other construction	241		111	120	155	—	131	110
Total land, lot and other construction	12,027		13,461	14,166	20,459	8,619	131	3,277
Owner occupied	6,998		7,229	5,940	12,891	5,207	219	1,572
Non-owner occupied	7,198		7,368	10,567	15,337	7,198	—	—
Total commercial real estate	14,196		14,597	16,507	28,228	12,405	219	1,572
Commercial and industrial	5,690		3,893	3,914	7,692	5,358	118	214
Agriculture	4,228		4,488	7,040	10,497	3,192	886	150
1st lien	10,211		10,279	10,290	9,725	7,077	1,383	1,751
Junior lien	592		582	565	3,257	520	—	72
Total 1-4 family	10,803		10,861	10,855	12,982	7,597	1,383	1,823
Multifamily residential	—		—	—	634	—	—	—
Home equity lines of credit	2,474		2,288	2,770	3,112	2,104	182	188
Other consumer	597		453	456	393	352	188	57
Total consumer	3,071		2,741	3,226	3,505	2,456	370	245
Other	380		348	579	—	307	73	—
Total	$	51,939	50,845	56,750	84,537	41,195	3,463	7,281

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

	Accruing 30-89 Days Delinquent Loans, by Loan Type								% Change from
(Dollars in thousands)	Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Jun 30, 2018		Mar 31, 2019		Dec 31, 2018		Jun 30, 2018
Custom and owner occupied construction	$	49	$	282	$	1,661	$	1,525	(83	)%	(97	)%	(97	)%
Pre-sold and spec construction	219		553		887		721		(60	)%	(75	)%	(70	)%
Total residential construction	268		835		2,548		2,246		(68	)%	(89	)%	(88	)%
Land development	1,990		—		228		728		n/m		773	%	173	%
Consumer land or lots	206		510		200		471		(60	)%	3	%	(56	)%
Unimproved land	658		685		579		1,450		(4	)%	14	%	(55	)%
Developed lots for operative builders	—		4		122		—		(100	)%	(100	)%	n/m
Commercial lots	—		331		203		—		(100	)%	(100	)%	n/m
Other construction	—		1,234		4,170		—		(100	)%	(100	)%	n/m
Total land, lot and other construction	2,854		2,764		5,502		2,649		3	%	(48	)%	8	%
Owner occupied	5,322		4,463		2,981		3,571		19	%	79	%	49	%
Non-owner occupied	11,700		6,604		1,245		8,414		77	%	840	%	39	%
Total commercial real estate	17,022		11,067		4,226		11,985		54	%	303	%	42	%
Commercial and industrial	3,006		4,070		3,374		5,745		(26	)%	(11	)%	(48	)%
Agriculture	3,125		5,709		6,455		5,288		(45	)%	(52	)%	(41	)%
1st lien	2,776		7,179		5,384		5,132		(61	)%	(48	)%	(46	)%
Junior lien	1,302		583		118		989		123	%	1,003	%	32	%
Total 1-4 family	4,078		7,762		5,502		6,121		(47	)%	(26	)%	(33	)%
Multifamily Residential	1,598		—		—		—		n/m		n/m		n/m
Home equity lines of credit	3,931		2,925		3,562		3,940		34	%	10	%	—	%
Other consumer	1,683		1,357		1,650		1,665		24	%	2	%	1	%
Total consumer	5,614		4,282		5,212		5,605		31	%	8	%	—	%
States and political subdivisions	—		—		229		—		n/m		(100	)%	n/m
Other	372		405		519		11		(8	)%	(28	)%	3,282	%
Total	$	37,937	$	36,894	$	33,567	$	39,650	3	%	13	%	(4	)%

______________________________

n/m - not measurable

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

	Net Charge-Offs (Recoveries), Year-to-DatePeriod Ending, By Loan Type									Charge-Offs	Recoveries
(Dollars in thousands)	Jun 30, 2019			Mar 31, 2019		Dec 31, 2018		Jun 30, 2018		Jun 30, 2019	Jun 30, 2019
Pre-sold and spec construction	$	(6	)	(4	)	(352	)	(344	)	—	6
Land development	15			23		(116	)	(107	)	42	27
Consumer land or lots	(2		)	(20	)	(146	)	(92	)	37	39
Unimproved land	(54		)	(9	)	(445	)	(144	)	—	54
Developed lots for operative builders	(18		)	—		33		33		—	18
Commercial lots	(3		)	(2	)	1		4		—	3
Other construction	(32		)	—		(19	)	—		9	41
Total land, lot and other construction	(94		)	(8	)	(692	)	(306	)	88	182
Owner occupied	139			75		1,320		1,000		226	87
Non-owner occupied	7			30		853		(4	)	130	123
Total commercial real estate	146			105		2,173		996		356	210
Commercial and industrial	37			(4	)	2,449		1,471		555	518
Agriculture	(32		)	14		16		44		67	99
1st lien	56			198		577		(193	)	298	242
Junior lien	(222		)	(52	)	(371	)	(34	)	29	251
Total 1-4 family	(166		)	146		206		(227	)	327	493
Multifamily residential	—			—		(649	)	(6	)	—	—
Home equity lines of credit	(11		)	(5	)	(97	)	(38	)	13	24
Other consumer	313			223		261		111		470	157
Total consumer	302			218		164		73		483	181
Other	2,055			1,043		4,967		1,816		4,324	2,269
Total	$	2,242		1,510		8,282		3,517		6,200	3,958