GLACIER BANCORP, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - GLACIER BANCORP, INC.	gbci-03312017x8k.htm

NEWS RELEASE

FOR IMMEDIATE RELEASE

CONTACT: Randall M. Chesler, CEO

(406) 751-4722

Ron J. Copher, CFO

(406) 751-7706

GLACIER BANCORP, INC. ANNOUNCES

RESULTS FOR THE QUARTER ENDED MARCH 31, 2017

1st Quarter 2017 Highlights:


•	Net income of $31.3 million for the current quarter, an increase of $2.6 million, or 9 percent, over the prior year first quarter net income of $28.7 million.


•	Current quarter diluted earnings per share of $0.41, an increase of 8 percent from the prior year first quarter diluted earnings per share of $0.38.


•	Loan growth of $193 million, or 14 percent annualized, for the current quarter.


•	Core deposits increased $99.6 million, or 6 percent annualized, during the current quarter.


•	Net interest margin of 4.03 percent as a percentage of earning assets, on a tax equivalent basis, a 2 basis point increase over the 4.01 net interest margin in the first quarter of the prior year.


•	Dividend declared of $0.21 per share, an increase of $0.01 per share, or 5 percent, over the prior quarter. The dividend was the 128th consecutive quarterly dividend.

Financial Highlights



	At or for the Three Months ended
(Dollars in thousands, except per share and market data)	Mar 31, 2017			Dec 31, 2016		Mar 31, 2016
Operating results
Net income	$	31,255		31,041		28,682
Basic earnings per share	$	0.41		0.41		0.38
Diluted earnings per share	$	0.41		0.41		0.38
Dividends declared per share ¹	$	0.21		0.50		0.20
Market value per share
Closing	$	33.93		36.23		25.42
High	$	38.03		37.66		26.34
Low	$	32.47		27.50		22.19
Selected ratios and other data
Number of common stock shares outstanding	76,619,952			76,525,402		76,168,388
Average outstanding shares - basic	76,572,116			76,525,402		76,126,251
Average outstanding shares - diluted	76,633,283			76,615,272		76,173,417
Return on average assets (annualized)	1.35		%	1.33	%	1.28	%
Return on average equity (annualized)	11.19		%	10.82	%	10.53	%
Efficiency ratio	55.57		%	55.08	%	56.53	%
Dividend payout ratio ¹	51.22		%	121.95	%	52.63	%
Loan to deposit ratio	78.91		%	78.10	%	74.65	%
Number of full time equivalent employees	2,224			2,222		2,184
Number of locations	142			142		144
Number of ATMs	161			166		167

_______

¹ Includes a special dividend declared of $0.30 per share for the three months ended December 31, 2016.

KALISPELL, MONTANA, April 20, 2017 - Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net income of $31.3 million for the current quarter, an increase of $2.6 million, or 9 percent, from the $28.7 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.41 per share, an increase of $0.03, or 8 percent, from the prior year first quarter diluted earnings per share of $0.38. “This strong first quarter performance is a great start to 2017 for Glacier Bancorp,” said Randy Chesler, President and Chief Executive Officer. “Our 13 Bank divisions and the supporting staff groups did an excellent job,” Chesler said.

Asset Summary



								$ Change from
(Dollars in thousands)	Mar 31, 2017			Dec 31, 2016		Mar 31, 2016		Dec 31, 2016		Mar 31, 2016
Cash and cash equivalents	$	234,004		152,541		150,861		81,463		83,143
Investment securities, available-for-sale	2,314,521			2,425,477		2,604,625		(110,956	)	(290,104	)
Investment securities, held-to-maturity	667,388			675,674		691,663		(8,286	)	(24,275	)
Total investment securities	2,981,909			3,101,151		3,296,288		(119,242	)	(314,379	)
Loans receivable
Residential real estate	685,458			674,347		685,026		11,111		432
Commercial real estate	3,056,372			2,990,141		2,680,691		66,231		375,681
Other commercial	1,462,110			1,342,250		1,172,956		119,860		289,154
Home equity	433,554			434,774		423,895		(1,220	)	9,659
Other consumer	239,480			242,951		234,625		(3,471	)	4,855
Loans receivable	5,876,974			5,684,463		5,197,193		192,511		679,781
Allowance for loan and lease losses	(129,226		)	(129,572	)	(130,071	)	346		845
Loans receivable, net	5,747,748			5,554,891		5,067,122		192,857		680,626
Other assets	590,247			642,017		606,471		(51,770	)	(16,224	)
Total assets	$	9,553,908		9,450,600		9,120,742		103,308		433,166

Total investment securities of $2.982 billion at March 31, 2017 decreased $119 million, or 4 percent, during the current quarter and decreased $314 million, or 10 percent, from the prior year first quarter. The decrease in the investment portfolio resulted from the Company redeploying the investment securities portfolio cash flow into the Company’s higher yielding loan portfolio. Investment securities represented 31 percent of total assets at March 31, 2017 compared to 33 percent of total assets at December 31, 2016 and 36 percent of total assets at March 31, 2016.

The Company experienced another strong quarter for loan growth with an increase of $193 million, or 14 percent annualized, during the current quarter. The loan category with the largest increase was other commercial loans which increased $120 million, or 9 percent, and included an increase of $42 million from municipal loans. Excluding the acquisition of Treasure State Bank (“TSB”), the loan portfolio increased $628 million, or 12 percent, since March 31, 2016 with the primary increase coming from growth in commercial real estate and other commercial loans of $351 million and $281 million, respectively. “First quarter loan growth was strong, driven by municipal lending growth and broad based activity across our thirteen Bank divisions,” Chesler said.

Credit Quality Summary



	At or for the Three Months ended			At or for the Year ended		At or for the Three Months ended
(Dollars in thousands)	Mar 31, 2017			Dec 31, 2016		Mar 31, 2016
Allowance for loan and lease losses
Balance at beginning of period	$	129,572		129,697		129,697
Provision for loan losses	1,598			2,333		568
Charge-offs	(4,229		)	(11,496	)	(1,163	)
Recoveries	2,285			9,038		969
Balance at end of period	$	129,226		129,572		130,071
Other real estate owned	$	17,771		20,954		22,085
Accruing loans 90 days or more past due	3,028			1,099		4,615
Non-accrual loans	50,674			49,332		53,523
Total non-performing assets	$	71,473		71,385		80,223
Non-performing assets as a percentage of subsidiary assets	0.75		%	0.76	%	0.88	%
Allowance for loan and lease losses as a percentage of non-performing loans	241		%	257	%	224	%
Allowance for loan and lease losses as a percentage of total loans	2.20		%	2.28	%	2.50	%
Net charge-offs as a percentage of total loans	0.03		%	0.04	%	—	%
Accruing loans 30-89 days past due	$	39,160		25,617		23,996
Accruing troubled debt restructurings	$	38,955		52,077		53,311
Non-accrual troubled debt restructurings	$	19,479		21,693		23,879
U.S. government guarantees included in non-performing assets	$	1,690		1,746		2,247

Non-performing assets at March 31, 2017 were $71.5 million, with a slight increase from the prior quarter and a decrease of $8.8 million, or 11 percent, from a year ago. Non-performing assets as a percentage of subsidiary assets at March 31, 2017 was 0.75 percent which was a decrease of 13 basis points from the prior year first quarter of 0.88 percent. Early stage delinquencies (accruing loans 30-89 days past due) of $39.2 million at March 31, 2017 increased $13.5 million from the prior quarter and increased $15.2 million from the prior year first quarter with half of the increase from one loan that the Company is currently in the process of evaluating. The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at March 31, 2017 was 2.20 percent, a decrease of 8 basis points from 2.28 percent at December 31, 2016.

Credit Quality Trends and Provision for Loan Losses



(Dollars in thousands)	Provision for Loan Losses		Net Charge-Offs (Recoveries)			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
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	%
Third quarter 2016	626		478			2.37	%	0.49	%	0.84	%
Second quarter 2016	—		(2,315		)	2.46	%	0.44	%	0.82	%
First quarter 2016	568		194			2.50	%	0.46	%	0.88	%
Fourth quarter 2015	411		1,482			2.55	%	0.38	%	0.88	%
Third quarter 2015	826		577			2.68	%	0.37	%	0.97	%
Second quarter 2015	282		(381		)	2.71	%	0.59	%	0.98	%

Net charge-offs for the current quarter were $1.9 million compared to $4.1 million for the prior quarter and $194 thousand from the same quarter last year. The quarterly net charge-offs continue to experience a fair amount of volatility on a quarterly basis. There was $1.6 million of current quarter provision for loan losses, compared to $1.1 million in the prior quarter and $568 thousand in the prior year first 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)	Mar 31, 2017		Dec 31, 2016	Mar 31, 2016	Dec 31, 2016		Mar 31, 2016
Deposits
Non-interest bearing deposits	$	2,049,476	2,041,852	1,887,004	7,624		162,472
NOW and DDA accounts	1,596,353		1,588,550	1,448,454	7,803		147,899
Savings accounts	1,035,023		996,061	879,541	38,962		155,482
Money market deposit accounts	1,516,731		1,464,415	1,411,970	52,316		104,761
Certificate accounts	941,628		948,714	1,063,735	(7,086	)	(122,107	)
Core deposits, total	7,139,211		7,039,592	6,690,704	99,619		448,507
Wholesale deposits	340,946		332,687	325,490	8,259		15,456
Deposits, total	7,480,157		7,372,279	7,016,194	107,878		463,963
Repurchase agreements	497,187		473,650	445,960	23,537		51,227
Federal Home Loan Bank advances	211,627		251,749	313,969	(40,122	)	(102,342	)
Other borrowed funds	8,894		4,440	6,633	4,454		2,261
Subordinated debentures	126,027		125,991	125,884	36		143
Other liabilities	94,776		105,622	118,422	(10,846	)	(23,646	)
Total liabilities	$	8,418,668	8,333,731	8,027,062	84,937		391,606

The Company benefited from the current quarter growth in core deposits which increased $99.6 million, or 6 percent annualized, from the prior quarter. Excluding the TSB acquisition, core deposits increased $390 million, or 6 percent, from March 31, 2016. Non-interest bearing deposits of $2.049 billion at March 31, 2017 increased $7.6 million, or 37 basis points, from the prior quarter. Excluding the TSB acquisition, non-interest bearing deposits increased $149 million, or 8 percent, from March 31, 2016.

Securities sold under agreements to repurchase (“repurchase agreements”) of $497 million at March 31, 2017 increased $23.5 million, or 5 percent, from the prior quarter and increased $51.2 million, or 11 percent, from the prior year first quarter. Federal Home Loan Bank (“FHLB”) advances of $212 million at March 31, 2017 decreased $40.1 million, or 16 percent, from the prior quarter and decreased $102 million, or 33 percent, from the prior year first quarter due to the increase in deposits.

Stockholders’ Equity Summary



								$ Change from
(Dollars in thousands, except per share data)	Mar 31, 2017			Dec 31, 2016		Mar 31, 2016		Dec 31, 2016	Mar 31, 2016
Common equity	$	1,139,652		1,124,251		1,088,359		15,401	51,293
Accumulated other comprehensive (loss) income	(4,412		)	(7,382	)	5,321		2,970	(9,733	)
Total stockholders’ equity	1,135,240			1,116,869		1,093,680		18,371	41,560
Goodwill and core deposit intangible, net	(158,799		)	(159,400	)	(154,396	)	601	(4,403	)
Tangible stockholders’ equity	$	976,441		957,469		939,284		18,972	37,157



Stockholders’ equity to total assets	11.88		%	11.82	%	11.99	%
Tangible stockholders’ equity to total tangible assets	10.39		%	10.31	%	10.48	%
Book value per common share	$	14.82		14.59		14.36		0.23	0.46
Tangible book value per common share	$	12.74		12.51		12.33		0.23	0.41

Tangible stockholders’ equity of $976 million at March 31, 2017 increased $19.0 million, or 2 percent, from the prior quarter primarily as a result of earnings retention and an increase in accumulated other comprehensive income. Tangible stockholders’ equity increased $37.2 million, or 4 percent, from a year ago, the result of earnings retention and $10.5 million of Company stock issued in connection with the TSB acquisition; such increases more than offset the increase in goodwill and other intangibles from the acquisition and the decrease in accumulated other comprehensive income. Tangible book value per common share at quarter end increased $0.23 per share from the prior quarter and increased $0.41 per share from a year ago.

Cash Dividend

On March 29, 2017, the Company’s Board of Directors declared a quarterly cash dividend of $0.21 per share, an increase of $0.01 per share, or 5 percent. The dividend was payable April 20, 2017 to shareholders of record April 11, 2017. 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 March 31, 2017

Compared to December 31, 2016 and March 31, 2016

Income Summary



	Three Months ended							$ Change from
(Dollars in thousands)	Mar 31, 2017			Dec 31, 2016		Mar 31, 2016		Dec 31, 2016		Mar 31, 2016
Net interest income
Interest income	$	87,628		87,759		84,381		(131	)	3,247
Interest expense	7,366			7,214		7,675		152		(309	)
Total net interest income	80,262			80,545		76,706		(283	)	3,556
Non-interest income
Service charges and other fees	15,633			15,645		14,681		(12	)	952
Miscellaneous loan fees and charges	980			1,234		1,021		(254	)	(41	)
Gain on sale of loans	6,358			9,765		5,992		(3,407	)	366
(Loss) gain on sale of investments	(100		)	(757	)	108		657		(208	)
Other income	2,818			2,127		2,450		691		368
Total non-interest income	25,689			28,014		24,252		(2,325	)	1,437
	$	105,951		108,559		100,958		(2,608	)	4,993
Net interest margin (tax-equivalent)	4.03		%	4.02	%	4.01	%

Net Interest Income

In the current quarter, interest income of $87.6 million decreased $131 thousand, or 15 basis points, from the prior quarter which was primarily attributable to two less days during the current quarter. Current quarter interest income increased $3.2 million, or 4 percent, over the prior year first quarter. Current quarter interest income on commercial loans increased $5.5 million, or 12 percent, from the prior year first quarter which more than offset the $1.9 million decrease in investment interest income.

The current quarter interest expense of $7.4 million increased $152 thousand, or 2 percent, from the prior quarter and decreased $309 thousand, or 4 percent, from the prior year first quarter. The total cost of funding (including non-interest bearing deposits) for the current quarter was 37 basis points compared to 36 basis points for the prior quarter and 39 basis points for the prior year first quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.03 percent compared to 4.02 percent in the prior quarter which was attributable to an increase in the earning asset yields from the continuing shift of lower yielding investments to higher yielding loans. The current quarter net interest margin increased 2 basis points over the prior year first quarter net interest margin of 4.01 percent, due to a 2 basis points decrease in cost of funds and the remix of earning assets to higher yielding loans. “The Bank divisions’ focus on growing core deposits combined with the shift of cash flow from the investment portfolio into higher yielding loans supported the current quarter’s 4.03 percent net interest margin,” said Ron Copher, Chief Financial Officer.

Non-interest Income

Non-interest income for the current quarter totaled $25.7 million, a decrease of $2.3 million, or 8 percent, from the prior quarter and an increase of $1.4 million, or 6 percent, over the same quarter last year. Service fee income of $15.6 million, increased by $952 thousand, or 6 percent, from the prior year first quarter as a result of the increased number of accounts. Gain on sale of loans for the current quarter decreased $3.4 million, or 35 percent,

from the prior quarter and was driven by the seasonal activity. Gain on sale of loans for the current quarter increased $366 thousand, or 6 percent, from the prior year first quarter. Other income of $2.8 million, increased $691 thousand, or 32 percent, over the prior quarter and increased $368 thousand, or 15 percent, over the prior year first quarter principally due to the current quarter gain on sale of other real estate owned (“OREO”). Other income included a gain of $967 thousand from the sale of OREO and operating revenue of $15 thousand from OREO, a combined total of $982 thousand for the current quarter compared to $481 thousand for the prior quarter and $214 thousand for the prior year first quarter.

Non-interest Expense Summary



	Three Months ended				$ Change from
(Dollars in thousands)	Mar 31, 2017		Dec 31, 2016	Mar 31, 2016	Dec 31, 2016		Mar 31, 2016
Compensation and employee benefits	$	39,246	38,826	36,941	420		2,305
Occupancy and equipment	6,646		6,692	6,676	(46	)	(30	)
Advertising and promotions	1,973		2,125	2,125	(152	)	(152	)
Data processing	3,124		3,409	3,373	(285	)	(249	)
Other real estate owned	273		2,076	390	(1,803	)	(117	)
Regulatory assessments and insurance	1,061		1,048	1,508	13		(447	)
Core deposit intangibles amortization	601		608	797	(7	)	(196	)
Other expenses	10,420		11,933	10,546	(1,513	)	(126	)
Total non-interest expense	$	63,344	66,717	62,356	(3,373	)	988

The Company consolidated its Bank divisions’ individual core database systems into a single core database and re-issued debit cards with chip technology during 2016 (the Core Consolidation Project or “CCP”). Expenses related to the CCP were $741 thousand in the fourth quarter of 2016 and $834 thousand during the first quarter of 2016. Excluding CCP expenses, non-interest expense for the current quarter decreased $2.6 million, or 4 percent, over the prior quarter and increased $1.8 million, or 4 percent, over the prior year first quarter.

Compensation and employee benefits for the current quarter increased by $2.3 million, or 6 percent, from the prior year first quarter due to salary increases, vesting of restricted stock awards and the increased number of employees, including increases from the TSB acquisition. The current quarter OREO expense of $273 thousand included $234 thousand of operating expense, $21 thousand of fair value write-downs, and $18 thousand of loss from the sales of OREO. The current quarter other expenses decreased $1.5 million over the prior quarter primarily from decreases related to CCP, acquisition related expenses, and expenses connected with equity investments in New Market Tax Credit projects. Current quarter other expenses decreased $126 thousand, or 1 percent, from the prior year first quarter which was driven by decreased costs from CCP.

Efficiency Ratio

The current quarter efficiency ratio was 55.57 percent, a 49 basis points increase from the prior quarter efficiency ratio of 55.08 percent. Although there was a reduction in expenses, the decrease in gain on sale of loans during the current quarter drove the increase in the efficiency ratio from the prior quarter. The current quarter efficiency ratio decreased 96 basis points from the prior year first quarter ratio of 56.53 percent resulting from the increase in interest income on commercial loans, which was greater than the increase in non-interest expense.

Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about 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 FDIC and other third parties;


•	legislative or regulatory changes, including increased banking and consumer protection regulation that adversely affect the Company’s business;


•	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, April 21, 2017. The conference call will be accessible by telephone and through the Internet. Interested individuals are invited to listen to the call by telephone at 877-561-2748 and the conference ID is 5756292. To participate on the webcast, log on to: http://edge.media-server.com/m/p/bi5xib4n. If you are unable to participate during the live webcast, the call will be

archived on our Web site, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 5756292 until May 5, 2017.

About Glacier Bancorp, Inc.

Glacier Bancorp, Inc. is a regional bank holding company providing commercial banking services in 88 communities in Montana, Idaho, Utah, Washington, Wyoming and Colorado. Glacier Bancorp, Inc. is headquartered in Kalispell, Montana, and is the parent company for Glacier Bank, Kalispell and Bank divisions First Security Bank of Missoula; Valley Bank of Helena; Big Sky Western Bank, Bozeman; Western Security Bank, Billings; and First Bank of Montana, Lewistown, all operating in Montana; as well as Mountain West Bank, Coeur d’Alene operating in Idaho, Utah and Washington; Citizens Community Bank, Pocatello, operating in Idaho; 1st Bank, Evanston, operating in Wyoming and Utah; First Bank of Wyoming, Powell and First State Bank, Wheatland, each operating in Wyoming; North Cascades Bank, Chelan, operating in Washington; and Bank of the San Juans, Durango, operating in Colorado.

Glacier Bancorp, Inc.

Unaudited Condensed Consolidated Statements of Financial Condition



(Dollars in thousands, except per share data)	March 31, 2017			December 31, 2016		March 31, 2016
Assets
Cash on hand and in banks	$	124,501		135,268		104,222
Federal funds sold	190			—		1,400
Interest bearing cash deposits	109,313			17,273		45,239
Cash and cash equivalents	234,004			152,541		150,861
Investment securities, available-for-sale	2,314,521			2,425,477		2,604,625
Investment securities, held-to-maturity	667,388			675,674		691,663
Total investment securities	2,981,909			3,101,151		3,296,288
Loans held for sale	25,649			72,927		40,484
Loans receivable	5,876,974			5,684,463		5,197,193
Allowance for loan and lease losses	(129,226		)	(129,572	)	(130,071	)
Loans receivable, net	5,747,748			5,554,891		5,067,122
Premises and equipment, net	175,283			176,198		192,951
Other real estate owned	17,771			20,954		22,085
Accrued interest receivable	48,043			45,832		47,363
Deferred tax asset	64,575			67,121		55,773
Core deposit intangible, net	11,746			12,347		13,758
Goodwill	147,053			147,053		140,638
Non-marketable equity securities	23,944			25,550		24,199
Other assets	76,183			74,035		69,220
Total assets	$	9,553,908		9,450,600		9,120,742
Liabilities
Non-interest bearing deposits	$	2,049,476		2,041,852		1,887,004
Interest bearing deposits	5,430,681			5,330,427		5,129,190
Securities sold under agreements to repurchase	497,187			473,650		445,960
FHLB advances	211,627			251,749		313,969
Other borrowed funds	8,894			4,440		6,633
Subordinated debentures	126,027			125,991		125,884
Accrued interest payable	3,467			3,584		3,608
Other liabilities	91,309			102,038		114,814
Total liabilities	8,418,668			8,333,731		8,027,062
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	766			765		762
Paid-in capital	749,381			749,107		736,664
Retained earnings - substantially restricted	389,505			374,379		350,933
Accumulated other comprehensive (loss) income	(4,412		)	(7,382	)	5,321
Total stockholders’ equity	1,135,240			1,116,869		1,093,680
Total liabilities and stockholders’ equity	$	9,553,908		9,450,600		9,120,742

Glacier Bancorp, Inc.

Unaudited Condensed Consolidated Statements of Operations



	Three Months ended
(Dollars in thousands, except per share data)	March 31, 2017			December 31, 2016		March 31, 2016
Interest Income
Investment securities	$	21,939		21,645		23,883
Residential real estate loans	7,918			8,463		8,285
Commercial loans	49,970			49,750		44,503
Consumer and other loans	7,801			7,901		7,710
Total interest income	87,628			87,759		84,381
Interest Expense
Deposits	4,440			4,497		4,795
Securities sold under agreements to repurchase	382			325		318
Federal Home Loan Bank advances	1,510			1,377		1,652
Federal funds purchased and other borrowed funds	15			18		18
Subordinated debentures	1,019			997		892
Total interest expense	7,366			7,214		7,675
Net Interest Income	80,262			80,545		76,706
Provision for loan losses	1,598			1,139		568
Net interest income after provision for loan losses	78,664			79,406		76,138
Non-Interest Income
Service charges and other fees	15,633			15,645		14,681
Miscellaneous loan fees and charges	980			1,234		1,021
Gain on sale of loans	6,358			9,765		5,992
(Loss) gain on sale of investments	(100		)	(757	)	108
Other income	2,818			2,127		2,450
Total non-interest income	25,689			28,014		24,252
Non-Interest Expense
Compensation and employee benefits	39,246			38,826		36,941
Occupancy and equipment	6,646			6,692		6,676
Advertising and promotions	1,973			2,125		2,125
Data processing	3,124			3,409		3,373
Other real estate owned	273			2,076		390
Regulatory assessments and insurance	1,061			1,048		1,508
Core deposit intangibles amortization	601			608		797
Other expenses	10,420			11,933		10,546
Total non-interest expense	63,344			66,717		62,356
Income Before Income Taxes	41,009			40,703		38,034
Federal and state income tax expense	9,754			9,662		9,352
Net Income	$	31,255		31,041		28,682

Glacier Bancorp, Inc.

Average Balance Sheets



	Three Months ended
	March 31, 2017							March 31, 2016
(Dollars in thousands)	Average Balance			Interest & Dividends		Average Yield/ Rate		Average Balance		Interest & Dividends		Average Yield/ Rate
Assets
Residential real estate loans	$	709,432		$	7,918	4.46	%	$	726,270	$	8,285	4.56	%
Commercial loans ¹	4,372,299			51,335		4.76	%	3,749,929		45,335		4.86	%
Consumer and other loans	672,480			7,801		4.70	%	653,839		7,710		4.74	%
Total loans ²	5,754,211			67,054		4.73	%	5,130,038		61,330		4.81	%
Tax-exempt investment securities ³	1,245,358			17,761		5.70	%	1,352,683		19,383		5.73	%
Taxable investment securities ⁴	1,857,335			10,575		2.28	%	1,999,000		11,461		2.29	%
Total earning assets	8,856,904			95,390		4.37	%	8,481,721		92,174		4.37	%
Goodwill and intangibles	159,089							154,790
Non-earning assets	369,274							390,891
Total assets	$	9,385,267						$	9,027,402
Liabilities
Non-interest bearing deposits	$	1,970,654		$	—	—	%	$	1,863,389	$	—	—%
NOW and DDA accounts	1,575,928			247		0.06	%	1,465,181		293		0.08	%
Savings accounts	1,015,108			146		0.06	%	863,764		104		0.05	%
Money market deposit accounts	1,490,198			565		0.15	%	1,406,718		553		0.16	%
Certificate accounts	953,527			1,333		0.57	%	1,071,055		1,564		0.59	%
Wholesale deposits ⁵	332,255			2,149		2.62	%	335,126		2,281		2.74	%
FHLB advances	271,225			1,510		2.23	%	308,040		1,652		2.12	%
Repurchase agreements and other borrowed funds	562,628			1,416		1.02	%	521,565		1,228		0.95	%
Total funding liabilities	8,171,523			7,366		0.37	%	7,834,838		7,675		0.39	%
Other liabilities	81,419							96,701
Total liabilities	8,252,942							7,931,539
Stockholders’ Equity
Common stock	766							761
Paid-in capital	748,851							736,398
Retained earnings	389,798							351,536
Accumulated other comprehensive (loss) income	(7,090		)					7,168
Total stockholders’ equity	1,132,325							1,095,863
Total liabilities and stockholders’ equity	$	9,385,267						$	9,027,402
Net interest income (tax-equivalent)				$	88,024					$	84,499
Net interest spread (tax-equivalent)						4.00	%					3.98	%
Net interest margin (tax-equivalent)						4.03	%					4.01	%

^__________


¹	Includes tax effect of $1.4 million and $832 thousand on tax-exempt municipal loan and lease income for the three months ended March 31, 2017 and 2016, 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 $6.1 million and $6.6 million on tax-exempt investment securities income for the three months ended March 31, 2017 and 2016, respectively.


⁴	Includes tax effect of $338 thousand and $352 thousand on federal income tax credits for the three months ended March 31, 2017 and 2016, 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)	Mar 31, 2017			Dec 31, 2016			Mar 31, 2016			Dec 31, 2016		Mar 31, 2016
Custom and owner occupied construction	$	92,835		$	86,233		$	68,893		8	%	35	%
Pre-sold and spec construction	68,736			66,184			59,220			4	%	16	%
Total residential construction	161,571			152,417			128,113			6	%	26	%
Land development	78,042			75,078			59,539			4	%	31	%
Consumer land or lots	94,840			97,449			93,922			(3	)%	1	%
Unimproved land	66,857			69,157			73,791			(3	)%	(9	)%
Developed lots for operative builders	13,046			13,254			12,973			(2	)%	1	%
Commercial lots	26,639			30,523			23,558			(13	)%	13	%
Other construction	272,184			257,769			166,378			6	%	64	%
Total land, lot, and other construction	551,608			543,230			430,161			2	%	28	%
Owner occupied	988,544			977,932			944,411			1	%	5	%
Non-owner occupied	964,913			929,729			806,856			4	%	20	%
Total commercial real estate	1,953,457			1,907,661			1,751,267			2	%	12	%
Commercial and industrial	739,475			686,870			664,855			8	%	11	%
Agriculture	411,094			407,208			372,616			1	%	10	%
1st lien	839,387			877,893			841,848			(4	)%	—	%
Junior lien	54,801			58,564			63,162			(6	)%	(13	)%
Total 1-4 family	894,188			936,457			905,010			(5	)%	(1	)%
Multifamily residential	162,636			184,068			197,267			(12	)%	(18	)%
Home equity lines of credit	405,309			402,614			379,866			1	%	7	%
Other consumer	153,159			155,193			150,047			(1	)%	2	%
Total consumer	558,468			557,807			529,913			—	%	5	%
Other	470,126			381,672			258,475			23	%	82	%
Total loans receivable, including loans held for sale	5,902,623			5,757,390			5,237,677			3	%	13	%
Less loans held for sale ¹	(25,649		)	(72,927		)	(40,484		)	(65	)%	(37	)%
Total loans receivable	$	5,876,974		$	5,684,463		$	5,197,193		3	%	13	%

_______

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)	Mar 31, 2017		Dec 31, 2016	Mar 31, 2016	Mar 31, 2017	Mar 31, 2017	Mar 31, 2017
Custom and owner occupied construction	$	—	—	995	—	—	—
Pre-sold and spec construction	227		226	—	227	—	—
Total residential construction	227		226	995	227	—	—
Land development	8,856		9,864	18,190	1,482	—	7,374
Consumer land or lots	1,728		2,137	1,751	754	—	974
Unimproved land	12,017		11,905	11,651	8,137	—	3,880
Developed lots for operative builders	116		175	457	—	—	116
Commercial lots	1,255		1,466	1,333	—	—	1,255
Total land, lot and other construction	23,972		25,547	33,382	10,373	—	13,599
Owner occupied	17,956		18,749	12,130	16,109	148	1,699
Non-owner occupied	3,194		3,426	4,354	3,194	—	—
Total commercial real estate	21,150		22,175	16,484	19,303	148	1,699
Commercial and industrial	4,466		5,184	6,046	4,298	65	103
Agriculture	1,878		1,615	3,220	1,488	390	—
1st lien	10,047		9,186	11,041	8,037	296	1,714
Junior lien	1,335		1,167	1,111	1,286	49	—
Total 1-4 family	11,382		10,353	12,152	9,323	345	1,714
Multifamily residential	388		400	432	388	—	—
Home equity lines of credit	6,008		5,494	5,432	5,136	232	640
Other consumer	202		391	280	138	48	16
Total consumer	6,210		5,885	5,712	5,274	280	656
Other	1,800		—	1,800	—	1,800	—
Total	$	71,473	71,385	80,223	50,674	3,028	17,771

Glacier Bancorp, Inc.

Credit Quality Summary by Regulatory Classification (continued)



	Accruing 30-89 Days Delinquent Loans, by Loan Type						% Change from
(Dollars in thousands)	Mar 31, 2017		Dec 31, 2016		Mar 31, 2016		Dec 31, 2016		Mar 31, 2016
Custom and owner occupied construction	$	380	$	1,836	$	—	(79	)%	n/m
Pre-sold and spec construction	488		—		304		n/m		61	%
Total residential construction	868		1,836		304		(53	)%	186	%
Land development	—		154		198		(100	)%	(100	)%
Consumer land or lots	432		638		796		(32	)%	(46	)%
Unimproved land	938		1,442		1,284		(35	)%	(27	)%
Commercial lots	258		—		—		n/m		n/m
Other construction	7,125		—		—		n/m		n/m
Total land, lot and other construction	8,753		2,234		2,278		292	%	284	%
Owner occupied	6,686		2,307		4,552		190	%	47	%
Non-owner occupied	405		1,689		1,466		(76	)%	(72	)%
Total commercial real estate	7,091		3,996		6,018		77	%	18	%
Commercial and industrial	6,796		3,032		4,907		124	%	38	%
Agriculture	3,567		1,133		659		215	%	441	%
1st lien	7,132		7,777		5,896		(8	)%	21	%
Junior lien	848		1,016		759		(17	)%	12	%
Total 1-4 family	7,980		8,793		6,655		(9	)%	20	%
Multifamily Residential	2,028		10		—		20,180	%	n/m
Home equity lines of credit	703		1,537		2,528		(54	)%	(72	)%
Other consumer	1,317		1,180		607		12	%	117	%
Total consumer	2,020		2,717		3,135		(26	)%	(36	)%
Other	57		1,866		40		(97	)%	43	%
Total	$	39,160	$	25,617	$	23,996	53	%	63	%

_______

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)	Mar 31, 2017			Dec 31, 2016		Mar 31, 2016		Mar 31, 2017	Mar 31, 2017
Custom and owner occupied construction	$	—		(1	)	—		—	—
Pre-sold and spec construction	(11		)	786		(28	)	—	11
Total residential construction	(11		)	785		(28	)	—	11
Land development	(33		)	(2,661	)	(100	)	—	33
Consumer land or lots	(57		)	(688	)	(240	)	—	57
Unimproved land	(96		)	(184	)	(34	)	—	96
Developed lots for operative builders	(5		)	(27	)	(12	)	—	5
Commercial lots	(2		)	27		23		—	2
Total land, lot and other construction	(193		)	(3,533	)	(363	)	—	193
Owner occupied	795			1,196		(27	)	888	93
Non-owner occupied	(1		)	44		(1	)	—	1
Total commercial real estate	794			1,240		(28	)	888	94
Commercial and industrial	344			(370	)	69		470	126
Agriculture	(3		)	50		(1	)	—	3
1st lien	(15		)	487		47		44	59
Junior lien	(16		)	60		(15	)	—	16
Total 1-4 family	(31		)	547		32		44	75
Multifamily residential	—			229		229		—	—
Home equity lines of credit	12			611		179		75	63
Other consumer	(11		)	257		95		73	84
Total consumer	1			868		274		148	147
Other	1,043			2,642		10		2,679	1,636
Total	$	1,944		2,458		194		4,229	2,285

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GLACIER BANCORP, INC. Reports