Glacier Bancorp (GBCI) 8-K Results of Operations and Financial Condition

NEWS RELEASE

FOR IMMEDIATE RELEASE

CONTACT: Michael J. Blodnick

(406) 751-4701

Randy Chesler

(406) 751-4722

Ron J. Copher

(406) 751-7706

GLACIER BANCORP, INC. ANNOUNCES

RESULTS FOR THE QUARTER ENDED JUNE 30, 2016

2nd Quarter 2016 Highlights:

• Record earnings of $30.5 million for the current quarter, an increase $1.1 million, or 4 percent, over the prior year second quarter net income of $29.3 million.

• Current quarter diluted earnings per share of $0.40, an increase of 3 percent from the prior year second quarter diluted earnings per share of $0.39.

• Loan growth of $181 million, or 14 percent annualized for the current quarter.

• Net interest margin of 4.06 percent as a percentage of earning assets, on a tax equivalent basis, for the current quarter compared to 4.01 percent in the prior quarter.

• Dividend declared of $0.20 per share, an increase of $0.01 per share, or 5 percent, over the prior year second quarter. The dividend was the 125th consecutive quarterly dividend declared by the Company.

• The Company successfully completed the second and third phase of the consolidation of its bank divisions’ core database systems into our new “Gold Bank” core database system.

• The Company announced the signing of a definitive agreement to acquire Treasure State Bank based in Missoula, Montana.

First Half of 2016 Highlights:

• Net income of $59.1 million for the first half of 2016, an increase of 4 percent over $57.0 million for the same period in the prior year.

• Diluted earnings per share of $0.78, an increase of 3 percent from the prior year first half diluted earnings per share of $0.76.

• Loan growth of $300 million, or 12 percent annualized for the for the first half of the current year.

• Net interest margin of 4.04 percent as a percentage of earning assets, on a tax equivalent basis, for the first six months of the current year compared to 4.00 percent for the same period last year.

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Financial Highlights

	At or for the Three Months ended							At or for the Six Months ended
(Dollars in thousands, except per share and market data)	Jun 30, 2016			Mar 31, 2016		Jun 30, 2015		Jun 30, 2016		Jun 30, 2015
Operating results
Net income	$	30,451		28,682		29,335		59,133		57,005
Basic earnings per share	$	0.40		0.38		0.39		0.78		0.76
Diluted earnings per share	$	0.40		0.38		0.39		0.78		0.76
Dividends declared per share	$	0.20		0.20		0.19		0.40		0.37
Market value per share
Closing	$	26.58		25.42		29.42		26.58		29.42
High	$	27.68		26.34		30.08		27.68		30.08
Low	$	24.31		22.19		24.76		22.19		22.27
Selected ratios and other data
Number of common stock shares outstanding	76,171,580			76,168,388		75,531,258		76,171,580		75,531,258
Average outstanding shares - basic	76,170,734			76,126,251		75,530,591		76,148,493		75,369,366
Average outstanding shares - diluted	76,205,069			76,173,417		75,565,655		76,191,655		75,407,621
Return on average assets (annualized)	1.34		%	1.28	%	1.39	%	1.31	%	1.37	%
Return on average equity (annualized)	10.99		%	10.53	%	11.05	%	10.76	%	10.89	%
Efficiency ratio	56.10		%	56.53	%	55.91	%	56.31	%	55.36	%
Dividend payout ratio	50.00		%	52.63	%	48.72	%	51.28	%	48.68	%
Loan to deposit ratio	76.92		%	74.65	%	74.11	%	76.92	%	74.11	%
Number of full time equivalent employees	2,210			2,184		2,058		2,210		2,058
Number of locations	143			144		135		143		135
Number of ATMs	167			167		158		167		158

KALISPELL, MONTANA, July 21, 2016 - Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net income of $30.5 million for the current quarter, an increase of $1.1 million, or 4 percent, from the $29.3 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.40 per share, an increase of $0.01, or 3 percent, from the prior year second quarter diluted earnings per share of $0.39. Included in the current quarter was $1.0 million of acquisition-related expenses, including conversion expenses, and $1.3 million of expenses related to the Company’s consolidation of its bank divisions’ core database systems (Core Consolidation Project or “CCP”) including expenses related to the re-issuance of debit cards with chip technology. The Company has completed the CCP conversion project for six of its thirteen bank divisions and is expecting to complete the project by year end. “It was another very solid quarter on a number of fronts,” said Mick Blodnick, President and Chief Executive Officer.  “Our Banks provided a record quarter for earnings and organic loan production at a time when we are in the midst of the largest internal core data project we have ever undertaken. In addition, our core interest margin remained above 4 percent,” Blodnick said.

Net income for the six months ended June 30, 2016 was $59.1 million, an increase of $2.1 million, or 4 percent, from the $57.0 million of net income for the first six months of the prior year. Diluted earnings per share for the first half of 2016 was $0.78 per share, an increase of $0.02, or 3 percent, from the diluted earnings per share of $0.76 for the first six months of the prior year.

The acquisition of Treasure State Bank marks the Company’s 18th acquisition since 2000 and its sixth announced transaction in the past three years. As of December 31, 2015, Treasure State Bank had total assets of $71.8 million, gross loans of $53.2 million and total deposits of $57.7 million. The Company has received all regulatory approvals

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for the transaction. “We’re excited to add Treasure State Bank and a group of talented bankers to our Company,” said Blodnick. “This Bank will fit nicely with First Security Bank and we expect it to be an excellent strategic addition.”

Asset Summary

										$ Change from
(Dollars in thousands)	Jun 30, 2016			Mar 31, 2016		Dec 31, 2015		Jun 30, 2015		Mar 31, 2016		Dec 31, 2015		Jun 30, 2015
Cash and cash equivalents	$	160,333		150,861		193,253		355,719		9,472		(32,920	)	(195,386	)
Investment securities, available-for-sale	2,487,955			2,604,625		2,610,760		2,361,830		(116,670	)	(122,805	)	126,125
Investment securities, held-to-maturity	680,574			691,663		702,072		593,314		(11,089	)	(21,498	)	87,260
Total investment securities	3,168,529			3,296,288		3,312,832		2,955,144		(127,759	)	(144,303	)	213,385
Loans receivable
Residential real estate	672,895			685,026		688,912		635,674		(12,131	)	(16,017	)	37,221
Commercial real estate	2,773,298			2,680,691		2,633,953		2,454,369		92,607		139,345		318,929
Other commercial	1,258,227			1,172,956		1,099,564		1,074,905		85,271		158,663		183,322
Home equity	431,659			423,895		420,901		410,708		7,764		10,758		20,951
Other consumer	242,538			234,625		235,351		231,775		7,913		7,187		10,763
Loans receivable	5,378,617			5,197,193		5,078,681		4,807,431		181,424		299,936		571,186
Allowance for loan and lease losses	(132,386		)	(130,071	)	(129,697	)	(130,519	)	(2,315	)	(2,689	)	(1,867	)
Loans receivable, net	5,246,231			5,067,122		4,948,984		4,676,912		179,109		297,247		569,319
Other assets	624,349			606,471		634,163		602,035		17,878		(9,814	)	22,314
Total assets	$	9,199,442		9,120,742		9,089,232		8,589,810		78,700		110,210		609,632

Total investment securities of $3.169 billion at June 30, 2016 decreased $128 million, or 4 percent, during the current 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 34 percent of total assets at June 30, 2016 compared to 36 percent of total assets at December 31, 2015 and 34 percent at June 30, 2015.

The Company experienced a 14 percent annualized loan growth rate during the current quarter. The loan portfolio increased $181 million, or 3 percent, during the current quarter. The loan category with the largest dollar increase was commercial real estate which increased $92.6 million, or 3 percent. The loan category with the largest percentage increase during the current quarter was other commercial loans which increased $85.3 million, or 7 percent. Included in other commercial loans are agriculture production, municipal, and other commercial and industrial loans, all of which increased during the current quarter. Excluding the acquisition of Cañon National Bank (“Cañon”) in October 2015, the loan portfolio increased $411 million, or 9 percent, since June 30, 2015 with $209 million and $167 million of the increase coming from growth in commercial real estate and other commercial loans, respectively. “For the second consecutive quarter we generated outstanding loan growth that exceeded expectations,” Blodnick said. “The growth was well distributed among all our Banks and gives us confidence that we will exceed our loan growth targets for 2016.”

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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, 2016			Mar 31, 2016		Dec 31, 2015		Jun 30, 2015
Allowance for loan and lease losses
Balance at beginning of period	$	129,697		129,697		129,753		129,753
Provision for loan losses	568			568		2,284		1,047
Charge-offs	(2,532		)	(1,163	)	(7,001	)	(2,598	)
Recoveries	4,653			969		4,661		2,317
Balance at end of period	$	132,386		130,071		129,697		130,519
Other real estate owned	$	24,370		22,085		26,815		26,686
Accruing loans 90 days or more past due	6,194			4,615		2,131		618
Non-accrual loans	45,017			53,523		51,133		56,918
Total non-performing assets 1	$	75,581		80,223		80,079		84,222
Non-performing assets as a percentage of subsidiary assets	0.82		%	0.88	%	0.88	%	0.98	%
Allowance for loan and lease losses as a percentage of non-performing loans	259		%	224	%	244	%	227	%
Allowance for loan and lease losses as a percentage of total loans	2.46		%	2.50	%	2.55	%	2.71	%
Net (recoveries) charge-offs as a percentage of total loans	(0.04		)%	—	%	0.05	%	0.01	%
Accruing loans 30-89 days past due	$	23,479		23,996		19,413		28,474
Accruing troubled debt restructurings	$	50,054		53,311		63,590		64,336
Non-accrual troubled debt restructurings	$	23,822		23,879		27,057		32,664

^__________ 

¹As of June 30, 2016, non-performing assets have not been reduced by U.S. government guarantees of $2.3 million.

Non-performing assets at June 30, 2016 were $75.6 million, a decrease of $4.6 million, or 6 percent, during the current quarter and a decrease of $8.6 million, or 10 percent, from a year ago. Early stage delinquencies (accruing loans 30-89 days past due) of $23.4 million at June 30, 2016 decreased $517 thousand from the prior quarter.

The allowance loan and lease losses (“allowance”) as a percent of total loans outstanding at June 30, 2016 was 2.46 percent, a decrease of 9 basis points from 2.55 percent at December 31, 2015 which was driven by loan growth combined with stabilized credit quality. The allowance as a percent of total loans in the current quarter decreased 25 basis points from 2.71 percent at June 30, 2015 which was also the result of loan growth and stabilizing credit quality.

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Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands)	Provision for Loan Losses		Net (Recoveries) 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
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	%
First quarter 2015	765		662			2.77	%	0.71	%	1.07	%
Fourth quarter 2014	191		1,070			2.89	%	0.58	%	1.08	%
Third quarter 2014	360		364			2.93	%	0.39	%	1.21	%

Net recoveries for the current quarter were $2.3 million compared to net charge-offs of $194 thousand for the prior quarter and net recoveries of $381 thousand from the same quarter last year. The net recoveries and charge-offs continue to trend in the right direction with a fair amount of volatility during the quarters. The Company was fortunate to recover a larger credit during the current quarter that it had been working towards a resolution for some time. There was no current quarter provision for loan losses, compared to $568 thousand in the prior quarter and $282 thousand 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.

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Liability Summary

						$ Change from
(Dollars in thousands)	Jun 30, 2016		Mar 31, 2016	Dec 31, 2015	Jun 30, 2015	Mar 31, 2016		Dec 31, 2015		Jun 30, 2015
Deposits
Non-interest bearing deposits	$	1,907,026	1,887,004	1,918,310	1,731,015	20,022		(11,284	)	176,011
NOW and DDA accounts	1,495,952		1,448,454	1,516,026	1,396,997	47,498		(20,074	)	98,955
Savings accounts	926,865		879,541	838,274	751,519	47,324		88,591		175,346
Money market deposit accounts	1,403,028		1,411,970	1,382,028	1,335,625	(8,942	)	21,000		67,403
Certificate accounts	1,017,681		1,063,735	1,060,650	1,146,178	(46,054	)	(42,969	)	(128,497	)
Core deposits, total	6,750,552		6,690,704	6,715,288	6,361,334	59,848		35,264		389,218
Wholesale deposits	338,264		325,490	229,720	197,323	12,774		108,544		140,941
Deposits, total	7,088,816		7,016,194	6,945,008	6,558,657	72,622		143,808		530,159
Repurchase agreements	414,327		445,960	423,414	408,935	(31,633	)	(9,087	)	5,392
Federal Home Loan Bank advances	328,832		313,969	394,131	329,470	14,863		(65,299	)	(638	)
Other borrowed funds	4,926		6,633	6,602	6,665	(1,707	)	(1,676	)	(1,739	)
Subordinated debentures	125,920		125,884	125,848	125,776	36		72		144
Other liabilities	111,962		118,422	117,579	103,856	(6,460	)	(5,617	)	8,106
Total liabilities	$	8,074,783	8,027,062	8,012,582	7,533,359	47,721		62,201		541,424

Non-interest bearing deposits of $1.907 billion at June 30, 2016, increased $20 million, or 1 percent, from the prior quarter which was driven by seasonal fluctuations and a strong inflow of new accounts. Excluding the Cañon acquisition, non-interest bearing deposits increased $86.9 million, or 5 percent, from June 30, 2015. Core interest bearing deposits of $4.844 billion at June 30, 2016, increased $39.8 million, or 1 percent, from the prior quarter. Excluding the Cañon acquisition, core interest bearing deposits at June 30, 2016 increased $65.0 million, or 1 percent, from June 30, 2015. Wholesale deposits (i.e., brokered deposits classified as NOW, DDA, money market deposit and certificate accounts) of $338 million at June 30, 2016 increased $109 million since December 31, 2015 and increased $141 million over the prior year second quarter. A majority of the increase was driven by a need to obtain wholesale deposits necessary for an interest rate swap.

Securities sold under agreements to repurchase (“repurchase agreements”) of $414 million at June 30, 2016 decreased $31.6 million, or 7 percent, from the prior quarter and increased $5.4 million, or 1 percent, from the prior year second quarter. Repurchase agreements fluctuated as certain customers had significant deposit cash flows. Federal Home Loan Bank (“FHLB”) advances of $329 million at June 30, 2016 increased $14.9 million, or 4 percent, during the current quarter to supplement the need for additional borrowings due to the loan growth in excess of deposit growth.

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Stockholders’ Equity Summary

										$ Change from
(Dollars in thousands, except per share data)	Jun 30, 2016			Mar 31, 2016		Dec 31, 2015		Jun 30, 2015		Mar 31, 2016	Dec 31, 2015	Jun 30, 2015
Common equity	$	1,104,246		1,088,359		1,074,661		1,051,011		15,887	29,585	53,235
Accumulated other comprehensive income	20,413			5,321		1,989		5,440		15,092	18,424	14,973
Total stockholders’ equity	1,124,659			1,093,680		1,076,650		1,056,451		30,979	48,009	68,208
Goodwill and core deposit intangible, net	(153,608		)	(154,396	)	(155,193	)	(142,344	)	788	1,585	(11,264	)
Tangible stockholders’ equity	$	971,051		939,284		921,457		914,107		31,767	49,594	56,944

Stockholders’ equity to total assets	12.23		%	11.99	%	11.85	%	12.30	%
Tangible stockholders’ equity to total tangible assets	10.73		%	10.48	%	10.31	%	10.82	%
Book value per common share	$	14.76		14.36		14.15		13.99		0.40	0.61	0.77
Tangible book value per common share	$	12.75		12.33		12.11		12.10		0.42	0.64	0.65

Tangible stockholders’ equity of $971 million at June 30, 2016 increased $31.8 million, or 3 percent, from the prior quarter primarily from earnings retention and an increase in accumulated other comprehensive income. The increase in accumulated other comprehensive income was from an increase in unrealized gains on the available-for-sale investment securities portfolio driven by lower interest rates in the current quarter. Tangible stockholders’ equity increased $56.9 million, or 6 percent, from a year ago, the result of earnings retention, an increase in accumulated other comprehensive income and $15.2 million of Company stock issued in connection with the Cañon acquisition; such increases more than offset the increase in goodwill and other intangibles from the Cañon acquisition. At June 30, 2016, the tangible book value per common share was $12.75 an increase of $0.42 per share from $12.33 the prior quarter principally due to earnings retention and the increase in accumulated other comprehensive income. Tangible book value per common share for June 30, 2016, increased $0.65 per share from the prior year second quarter.

Cash Dividend

On June 29, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per share. The dividend was payable July 21, 2016 to shareholders of record July 12, 2016. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

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Operating Results for Three Months Ended June 30, 2016 

Compared to March 31, 2016 and June 30, 2015

Income Summary

	Three Months ended							$ Change from
(Dollars in thousands)	Jun 30, 2016			Mar 31, 2016		Jun 30, 2015		Mar 31, 2016		Jun 30, 2015
Net interest income
Interest income	$	86,069		84,381		78,617		1,688		7,452
Interest expense	7,424			7,675		7,369		(251	)	55
Total net interest income	78,645			76,706		71,248		1,939		7,397
Non-interest income
Service charges and other fees	15,772			14,681		15,062		1,091		710
Miscellaneous loan fees and charges	1,163			1,021		1,142		142		21
Gain on sale of loans	8,257			5,992		7,600		2,265		657
(Loss) gain on sale of investments	(220		)	108		(98	)	(328	)	(122	)
Other income	1,787			2,450		2,096		(663	)	(309	)
Total non-interest income	26,759			24,252		25,802		2,507		957
	$	105,404		100,958		97,050		4,446		8,354
Net interest margin (tax-equivalent)	4.06		%	4.01	%	3.98	%

Net Interest Income

In the current quarter, interest income of $86.1 million increased $1.7 million, or 2 percent from the prior quarter and was primarily driven by the increase in interest income from commercial loans. Commercial loan income increased $2.5 million, or 6 percent, during the current quarter with $759 thousand attributable to interest income recovered from loans previously placed on non-accrual. Current quarter interest income increased $7.5 million, or 9 percent, over the prior year second quarter because of increases in interest income on commercial loans which increased $6.3 million, or 15 percent, and increases in investment income which increased $1.1 million, or 5 percent.

The current quarter interest expense of $7.4 million decreased $251 thousand, or 3 percent, from the prior quarter and increased $55 thousand from the prior year second quarter. The total cost of funding (including non-interest bearing deposits) for the current quarter was 38 basis points compared to 39 basis points for the prior quarter and 40 basis points in 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 4.06 percent compared to 4.01 percent in the prior quarter. During the current quarter, the earning asset yield increased by 5 basis points and was primarily the result of a 4 basis points increase from the recovery of interest on loans previously placed on non-accrual. The Company’s current quarter net interest margin increased 8 basis points from the prior year second quarter net interest margin of 3.98 percent. The increase was driven by the shift in earning assets from the lower yielding investment securities to higher yielding loans, the current quarter recovery of interest on loans, and lower funding cost. “Excluding the impact of the interest recovery, the Company experienced a stable net interest margin of 4.02 percent for the current quarter. The shift in earning assets from investment securities to the the higher yielding loan portfolio continues to benefit the Company,” said Ron Copher, Chief Financial Officer.

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Non-interest Income

Non-interest income for the current quarter totaled $26.8 million, an increase of $2.5 million, or 10 percent, from the prior quarter and an increase of $957 thousand, or 4 percent, over the same quarter last year. Service fee income of $15.8 million, increased $1.1 million, or 7 percent, from the prior quarter as a result of seasonal activity, an increase in the number of deposit accounts, and annual vendor incentives. Service fee income for the current quarter increased by $710 thousand, or 5 percent, from the prior year second quarter because of the increased number of deposit accounts. Gain on sale of residential loans for the current quarter increased $2.3 million, or 38 percent, from the prior quarter due to seasonal activity and the low interest rate environment. Gain on sale of residential loans for the current quarter increased $657 thousand, or 9 percent, from the prior year second quarter as the Company benefited from its focus on residential lending and a beneficial interest rate environment for mortgage loans. Included in other income was operating revenue of $40 thousand from other real estate owned (“OREO”) and a gain of $142 thousand from the sale of OREO, a combined total of $182 thousand for the current quarter compared to $214 thousand for the prior quarter and $323 thousand for the prior year second quarter.

Non-interest Expense Summary

	Three Months ended				$ Change from
(Dollars in thousands)	Jun 30, 2016		Mar 31, 2016	Jun 30, 2015	Mar 31, 2016		Jun 30, 2015
Compensation and employee benefits	$	37,560	36,941	32,729	619		4,831
Occupancy and equipment	6,443		6,676	6,432	(233	)	11
Advertising and promotions	2,085		2,125	2,240	(40	)	(155	)
Data processing	3,938		3,373	2,971	565		967
Other real estate owned	214		390	1,377	(176	)	(1,163	)
Regulatory assessments and insurance	1,066		1,508	1,006	(442	)	60
Core deposit intangibles amortization	788		797	755	(9	)	33
Other expenses	12,367		10,546	12,435	1,821		(68	)
Total non-interest expense	$	64,461	62,356	59,945	2,105		4,516

Compensation and employee benefits for the current quarter increased by $619 thousand, or 2 percent, from the prior quarter as a result of seasonal fluctuations. Compensation and employee benefits for the current quarter increased by $4.8 million, or 15 percent, from the prior year second quarter due to the increased number of employees, including increases from the Cañon acquisition, and annual salary increases. Current quarter occupancy and equipment expense decreased $233 thousand, or 3 percent, from the prior quarter and increased $11 thousand, or 17 basis points, from the prior year second quarter. The current quarter data processing expense increased $565 thousand, or 17 percent, from the prior quarter and increased $967 thousand from the prior year second quarter; such increases primarily from expenses associated with CCP. The current quarter OREO expense of $214 thousand included $145 thousand of operating expense, $24 thousand of fair value write-downs, and $45 thousand of loss from the sales of OREO. Current quarter other expenses of $12.4 million increased $1.8 million, or 17 percent, from the prior quarter and was driven by increases from acquisition-related expenses, including conversion expenses, and costs associated with CCP. Current quarter other expenses remained stable in total compared to the prior year second quarter, however several areas experienced increases or decreases related to acquisitions, CCP, and expenses connected with equity investments in New Market Tax Credit (“NMTC”) projects.

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Efficiency Ratio

The current quarter efficiency ratio was 56.10 percent, a 43 basis points reduction from the prior quarter efficiency ratio of 56.53 percent which was driven by increases in interest income on commercial loans, service charges and gain on sale of residential loans. The current quarter efficiency ratio of 56.10 percent compared to 55.91 percent in the prior year second quarter. The 19 basis points increase in the efficiency ratio was the result of additional costs associated with CCP, which was greater than the benefits experienced in net interest income and non-interest income.

Operating Results for Six Months ended June 30, 2016

Compared to June 30, 2015

Income Summary

	Six Months ended						$ Change			% Change
(Dollars in thousands)	June 30, 2016			June 30, 2015
Net interest income
Interest income	$	170,450		$	156,103		$	14,347		9	%
Interest expense	15,099			14,751			348			2	%
Total net interest income	155,351			141,352			13,999			10	%
Non-interest income
Service charges and other fees	30,453			28,511			1,942			7	%
Miscellaneous loan fees and charges	2,184			2,299			(115		)	(5	)%
Gain on sale of loans	14,249			13,030			1,219			9	%
(Loss) gain on sale of investments	(112		)	(93		)	(19		)	20	%
Other income	4,237			4,748			(511		)	(11	)%
Total non-interest income	51,011			48,495			2,516			5	%
	$	206,362		$	189,847		$	16,515		9	%
Net interest margin (tax-equivalent)	4.04		%	4.00		%

Net Interest Income

Net interest income for the first six months of the current year was $155.4 million, an increase of $14.0 million, or 10 percent, over the same period last year. Interest income for the first six months of the current year increased $14.3 million, or 9 percent, from the prior year first six months and was principally due to an $11.8 million increase in income from commercial loans. Additional increases included $2.0 million in interest income from investment securities and $706 thousand in interest income from residential loans.

Interest expense of $15.1 million for the first half the current year increased $348 thousand, or 2 percent, over the prior year first half. Deposit interest expense for the first six months of the current year increased $1.1 million, or 13 percent, from the prior year first six months and was driven by the increase in wholesale deposits and the additional interest expense for an interest rate swap with a notional $100 million that began its accrual period in December 2015. FHLB interest expense decreased $1.1 million, or 25 percent, which resulted from long-term advances maturing and being replaced by lower rate short-term advances. The total funding cost (including non-interest bearing deposits) for the first six months of 2016 was 39 basis points compared to 41 basis points for the first six months of 2015. 

10

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first six months of 2016 was 4.04 percent, a 4 basis point increase from the net interest margin of 4.00 percent for the first six months of 2015. The increase in the margin was primarily attributable to a shift in earning assets to higher yielding loans combined with a continued increase in low cost deposits.

Non-interest Income

Non-interest income of $51.0 million for the first half of 2016 increased $2.5 million, or 5 percent, over the same period last year. Service charges and other fees of $30.5 million for the first six months of 2016 increased $1.9 million, or 7 percent, from the same period last year as a result of an increased number of deposit accounts and increases from recent acquisitions. The gain of $14.2 million on the sale of residential loans for the first half of 2016 increased $1.2 million, or 9 percent, from the first half of 2015. Included in other income was operating revenue of $50 thousand from OREO and gains of $345 thousand from the sales of OREO, which totaled $395 thousand for the first half of 2016 compared to $740 thousand for the same period in the prior year.

Non-interest Expense Summary

	Six Months ended				$ Change			% Change
(Dollars in thousands)	June 30, 2016		June 30, 2015
Compensation and employee benefits	$	74,501	$	64,973	$	9,528		15	%
Occupancy and equipment	13,119		12,492		627			5	%
Advertising and promotions	4,210		4,167		43			1	%
Data processing	7,311		5,522		1,789			32	%
Other real estate owned	604		2,135		(1,531		)	(72	)%
Regulatory assessments and insurance	2,574		2,311		263			11	%
Core deposit intangible amortization	1,585		1,486		99			7	%
Other expenses	22,913		22,356		557			2	%
Total non-interest expense	$	126,817	$	115,442	$	11,375		10	%

Compensation and employee benefits for the first six months of 2016 increased $9.5 million, or 15 percent, from the same period last year due to expenses related to CCP, the increased number of employees including from the acquired banks, and annual salary increases. Occupancy and equipment expense of $13.1 million for the first half of 2016 increased $627 thousand, or 5 percent. Outsourced data processing expense increased $1.8 million, or 32 percent, from the prior year first six months as a result of additional costs from CCP. OREO expense of $604 thousand in the first six months of 2016 decreased $1.5 million, or 72 percent, from the first six months of the prior year. OREO expense for the first six months of 2016 included $281 thousand of operating expenses, $79 thousand of fair value write-downs, and $244 thousand of loss from the sales of OREO.

Provision for Loan Losses

The provision for loan losses was $568 thousand for the first six months of 2016, a decrease of $479 thousand, or 46 percent, from the same period in the prior year. Net recovery of loans during the first six months of 2016 was $2.1 million compared to net charge-offs of $281 thousand from the first six months of 2015.

Efficiency Ratio

The efficiency ratio was 56.31 percent for the first six months of 2016 and 55.36 percent for the first six months of 2015. Although there were increases in both net interest income and non-interest income, such increases were outpaced by the increases in CCP expenses and compensation expenses which contributed to the higher efficiency ratio in 2016.

11

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;

• 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 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;

• 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;

• potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks, fraud or system failures; and

• the Company’s success in managing risks involved in 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 22, 2016. 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 41356911. To participate on the webcast, log on to: http://edge.media-server.com/m/p/grb9rbne. 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 41356911 until August 5, 2016.

12

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.

13

Glacier Bancorp, Inc.

Unaudited Condensed Consolidated Statements of Financial Condition

(Dollars in thousands, except per share data)	June 30, 2016			March 31, 2016		December 31, 2015		June 30, 2015
Assets
Cash on hand and in banks	$	147,748		104,222		117,137		120,783
Federal funds sold	—			1,400		6,080		—
Interest bearing cash deposits	12,585			45,239		70,036		234,936
Cash and cash equivalents	160,333			150,861		193,253		355,719
Investment securities, available-for-sale	2,487,955			2,604,625		2,610,760		2,361,830
Investment securities, held-to-maturity	680,574			691,663		702,072		593,314
Total investment securities	3,168,529			3,296,288		3,312,832		2,955,144
Loans held for sale	74,140			40,484		56,514		53,201
Loans receivable	5,378,617			5,197,193		5,078,681		4,807,431
Allowance for loan and lease losses	(132,386		)	(130,071	)	(129,697	)	(130,519	)
Loans receivable, net	5,246,231			5,067,122		4,948,984		4,676,912
Premises and equipment, net	177,911			192,951		194,030		186,858
Other real estate owned	24,370			22,085		26,815		26,686
Accrued interest receivable	47,554			47,363		44,524		44,563
Deferred tax asset	46,488			55,773		58,475		56,571
Core deposit intangible, net	12,970			13,758		14,555		11,501
Goodwill	140,638			140,638		140,638		130,843
Non-marketable equity securities	24,791			24,199		27,495		24,914
Other assets	75,487			69,220		71,117		66,898
Total assets	$	9,199,442		9,120,742		9,089,232		8,589,810
Liabilities
Non-interest bearing deposits	$	1,907,026		1,887,004		1,918,310		1,731,015
Interest bearing deposits	5,181,790			5,129,190		5,026,698		4,827,642
Securities sold under agreements to repurchase	414,327			445,960		423,414		408,935
FHLB advances	328,832			313,969		394,131		329,470
Other borrowed funds	4,926			6,633		6,602		6,665
Subordinated debentures	125,920			125,884		125,848		125,776
Accrued interest payable	3,486			3,608		3,517		3,790
Other liabilities	108,476			114,814		114,062		100,066
Total liabilities	8,074,783			8,027,062		8,012,582		7,533,359
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	762			762		761		755
Paid-in capital	737,379			736,664		736,368		720,073
Retained earnings - substantially restricted	366,105			350,933		337,532		330,183
Accumulated other comprehensive income	20,413			5,321		1,989		5,440
Total stockholders’ equity	1,124,659			1,093,680		1,076,650		1,056,451
Total liabilities and stockholders’ equity	$	9,199,442		9,120,742		9,089,232		8,589,810

14

Glacier Bancorp, Inc.

Unaudited Condensed Consolidated Statements of Operations

	Three Months ended						Six Months ended
(Dollars in thousands, except per share data)	June 30, 2016			March 31, 2016	June 30, 2015		June 30, 2016		June 30, 2015
Interest Income
Investment securities	$	23,037		23,883	21,959		46,920		44,918
Residential real estate loans	8,124			8,285	7,942		16,409		15,703
Commercial loans	47,002			44,503	40,698		91,505		79,720
Consumer and other loans	7,906			7,710	8,018		15,616		15,762
Total interest income	86,069			84,381	78,617		170,450		156,103
Interest Expense
Deposits	4,560			4,795	4,112		9,355		8,259
Securities sold under agreements to repurchase	275			318	232		593		473
Federal Home Loan Bank advances	1,665			1,652	2,217		3,317		4,412
Federal funds purchased and other borrowed funds	14			18	15		32		42
Subordinated debentures	910			892	793		1,802		1,565
Total interest expense	7,424			7,675	7,369		15,099		14,751
Net Interest Income	78,645			76,706	71,248		155,351		141,352
Provision for loan losses	—			568	282		568		1,047
Net interest income after provision for loan losses	78,645			76,138	70,966		154,783		140,305
Non-Interest Income
Service charges and other fees	15,772			14,681	15,062		30,453		28,511
Miscellaneous loan fees and charges	1,163			1,021	1,142		2,184		2,299
Gain on sale of loans	8,257			5,992	7,600		14,249		13,030
(Loss) gain on sale of investments	(220		)	108	(98	)	(112	)	(93	)
Other income	1,787			2,450	2,096		4,237		4,748
Total non-interest income	26,759			24,252	25,802		51,011		48,495
Non-Interest Expense
Compensation and employee benefits	37,560			36,941	32,729		74,501		64,973
Occupancy and equipment	6,443			6,676	6,432		13,119		12,492
Advertising and promotions	2,085			2,125	2,240		4,210		4,167
Data processing	3,938			3,373	2,971		7,311		5,522
Other real estate owned	214			390	1,377		604		2,135
Regulatory assessments and insurance	1,066			1,508	1,006		2,574		2,311
Core deposit intangibles amortization	788			797	755		1,585		1,486
Other expenses	12,367			10,546	12,435		22,913		22,356
Total non-interest expense	64,461			62,356	59,945		126,817		115,442
Income Before Income Taxes	40,943			38,034	36,823		78,977		73,358
Federal and state income tax expense	10,492			9,352	7,488		19,844		16,353
Net Income	$	30,451		28,682	29,335		59,133		57,005

15

Glacier Bancorp, Inc.

Average Balance Sheets

	Three Months ended
	June 30, 2016						June 30, 2015
(Dollars in thousands)	Average Balance		Interest & Dividends		Average Yield/ Rate		Average Balance		Interest & Dividends		Average Yield/ Rate
Assets
Residential real estate loans	$	731,432	$	8,124	4.44	%	$	688,214	$	7,942	4.62	%
Commercial loans 1	3,902,007		47,956		4.94	%	3,439,432		41,343		4.82	%
Consumer and other loans	666,212		7,906		4.77	%	627,847		8,018		5.12	%
Total loans 2	5,299,651		63,986		4.86	%	4,755,493		57,303		4.83	%
Tax-exempt investment securities 3	1,348,520		19,274		5.72	%	1,315,849		19,022		5.78	%
Taxable investment securities 4	1,915,740		10,686		2.23	%	1,848,222		9,655		2.09	%
Total earning assets	8,563,911		93,946		4.41	%	7,919,564		85,980		4.35	%
Goodwill and intangibles	153,981						142,781
Non-earning assets	390,457						391,562
Total assets	$	9,108,349					$	8,453,907
Liabilities
Non-interest bearing deposits	$	1,853,649	$	—	—	%	$	1,693,414	$	—	—	%
NOW and DDA accounts	1,494,950		271		0.07	%	1,343,474		258		0.08	%
Savings accounts	901,367		108		0.05	%	744,845		84		0.05	%
Money market deposit accounts	1,398,230		540		0.16	%	1,336,889		513		0.15	%
Certificate accounts	1,033,866		1,558		0.61	%	1,153,143		1,784		0.62	%
Wholesale deposits 5	326,364		2,083		2.57	%	215,138		1,473		2.75	%
FHLB advances	392,835		1,665		1.68	%	315,104		2,217		2.78	%
Repurchase agreements and other borrowed funds	498,643		1,199		0.97	%	497,638		1,040		0.84	%
Total funding liabilities	7,899,904		7,424		0.38	%	7,299,645		7,369		0.40	%
Other liabilities	94,220						89,751
Total liabilities	7,994,124						7,389,396
Stockholders’ Equity
Common stock	762						755
Paid-in capital	736,876						719,730
Retained earnings	365,385						329,781
Accumulated other comprehensive income	11,202						14,245
Total stockholders’ equity	1,114,225						1,064,511
Total liabilities and stockholders’ equity	$	9,108,349					$	8,453,907
Net interest income (tax-equivalent)			$	86,522					$	78,611
Net interest spread (tax-equivalent)					4.03	%					3.95	%
Net interest margin (tax-equivalent)					4.06	%					3.98	%

^__________ 

¹  Includes tax effect of $954 thousand and $645 thousand on tax-exempt municipal loan and lease income for the three months ended June 30, 2016 and 2015, 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 $6.6 million and $6.4 million on tax-exempt investment securities income for the three months ended June 30, 2016 and 2015, respectively.

⁴  Includes tax effect of $352 thousand and $362 thousand on federal income tax credits for the three months ended June 30, 2016 and 2015, respectively.

⁵  Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

16

Glacier Bancorp, Inc.

Average Balance Sheets (continued)

	Six Months ended
	June 30, 2016						June 30, 2015
(Dollars in thousands)	Average Balance		Interest & Dividends		Average Yield/ Rate		Average Balance		Interest & Dividends		Average Yield/ Rate
Assets
Residential real estate loans	$	728,851	$	16,409	4.50	%	$	670,058	$	15,703	4.69	%
Commercial loans 1	3,825,968		93,291		4.90	%	3,361,582		80,948		4.86	%
Consumer and other loans	660,025		15,616		4.76	%	618,900		15,762		5.14	%
Total loans 2	5,214,844		125,316		4.83	%	4,650,540		112,413		4.87	%
Tax-exempt investment securities 3	1,350,601		38,656		5.72	%	1,309,049		37,515		5.73	%
Taxable investment securities 4	1,957,370		22,148		2.26	%	1,876,372		20,409		2.18	%
Total earning assets	8,522,815		186,120		4.39	%	7,835,961		170,337		4.38	%
Goodwill and intangibles	154,385						141,759
Non-earning assets	390,675						385,605
Total assets	$	9,067,875					$	8,363,325
Liabilities
Non-interest bearing deposits	$	1,858,519	$	—	—	%	$	1,655,981	$	—	—	%
NOW and DDA accounts	1,480,065		564		0.08	%	1,327,491		526		0.08	%
Savings accounts	882,565		212		0.05	%	729,456		173		0.05	%
Money market deposit accounts	1,402,474		1,092		0.16	%	1,320,538		1,030		0.16	%
Certificate accounts	1,052,460		3,123		0.60	%	1,159,279		3,627		0.63	%
Wholesale deposits 5	330,745		4,364		2.65	%	217,746		2,903		2.69	%
FHLB advances	350,438		3,317		1.87	%	307,581		4,412		2.85	%
Repurchase agreements and other borrowed funds	510,104		2,427		0.96	%	500,710		2,080		0.84	%
Total funding liabilities	7,867,370		15,099		0.39	%	7,218,782		14,751		0.41	%
Other liabilities	95,461						88,952
Total liabilities	7,962,831						7,307,734
Stockholders’ Equity
Common stock	761						754
Paid-in capital	736,637						715,949
Retained earnings	358,461						321,936
Accumulated other comprehensive income	9,185						16,952
Total stockholders’ equity	1,105,044						1,055,591
Total liabilities and stockholders’ equity	$	9,067,875					$	8,363,325
Net interest income (tax-equivalent)			$	171,021					$	155,586
Net interest spread (tax-equivalent)					4.00	%					3.97	%
Net interest margin (tax-equivalent)					4.04	%					4.00	%

^__________ 

¹  Includes tax effect of $1.8 million and $1.2 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2016 and 2015, 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 $13.2 million and $12.3 million on tax-exempt investment securities income for the six months ended June 30, 2016 and 2015, respectively.

⁴  Includes tax effect of $704 thousand and $724 thousand on federal income tax credits for the six months ended June 30, 2016 and 2015, respectively.

⁵  Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

17

Glacier Bancorp, Inc.

Loan Portfolio by Regulatory Classification

	Loans Receivable, by Loan Type												% Change from
(Dollars in thousands)	Jun 30, 2016			Mar 31, 2016			Dec 31, 2015			Jun 30, 2015			Mar 31, 2016		Dec 31, 2015		Jun 30, 2015
Custom and owner occupied construction	$	78,525		$	68,893		$	75,094		$	56,460		14	%	5	%	39	%
Pre-sold and spec construction	59,530			59,220			50,288			45,063			1	%	18	%	32	%
Total residential construction	138,055			128,113			125,382			101,523			8	%	10	%	36	%
Land development	61,803			59,539			62,356			78,059			4	%	(1	)%	(21	)%
Consumer land or lots	95,247			93,922			97,270			98,365			1	%	(2	)%	(3	)%
Unimproved land	70,396			73,791			73,844			76,726			(5	)%	(5	)%	(8	)%
Developed lots for operative builders	13,845			12,973			12,336			13,673			7	%	12	%	1	%
Commercial lots	26,084			23,558			22,035			20,047			11	%	18	%	30	%
Other construction	206,343			166,378			156,784			126,966			24	%	32	%	63	%
Total land, lot, and other construction	473,718			430,161			424,625			413,836			10	%	12	%	14	%
Owner occupied	927,237			944,411			938,625			874,651			(2	)%	(1	)%	6	%
Non-owner occupied	835,272			806,856			774,192			718,024			4	%	8	%	16	%
Total commercial real estate	1,762,509			1,751,267			1,712,817			1,592,675			1	%	3	%	11	%
Commercial and industrial	705,011			664,855			649,553			635,259			6	%	9	%	11	%
Agriculture	421,097			372,616			367,339			374,258			13	%	15	%	13	%
1st lien	867,918			841,848			856,193			802,152			3	%	1	%	8	%
Junior lien	64,248			63,162			65,383			67,019			2	%	(2	)%	(4	)%
Total 1-4 family	932,166			905,010			921,576			869,171			3	%	1	%	7	%
Multifamily residential	198,583			197,267			201,542			195,674			1	%	(1	)%	1	%
Home equity lines of credit	388,939			379,866			372,039			356,077			2	%	5	%	9	%
Other consumer	156,568			150,047			150,469			147,427			4	%	4	%	6	%
Total consumer	545,507			529,913			522,508			503,504			3	%	4	%	8	%
Other	276,111			258,475			209,853			174,732			7	%	32	%	58	%
Total loans receivable, including loans held for sale	5,452,757			5,237,677			5,135,195			4,860,632			4	%	6	%	12	%
Less loans held for sale 1	(74,140		)	(40,484		)	(56,514		)	(53,201		)	83	%	31	%	39	%
Total loans receivable	$	5,378,617		$	5,197,193		$	5,078,681		$	4,807,431		3	%	6	%	12	%

_______

¹ Loans held for sale are primarily 1st lien 1-4 family loans.

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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)	Jun 30, 2016		Mar 31, 2016	Dec 31, 2015	Jun 30, 2015	Jun 30, 2016	Jun 30, 2016	Jun 30, 2016
Custom and owner occupied construction	$	390	995	1,016	1,079	390	—	—
Pre-sold and spec construction	—		—	—	18	—	—	—
Total residential construction	390		995	1,016	1,097	390	—	—
Land development	12,830		18,190	17,582	20,405	2,128	—	10,702
Consumer land or lots	1,656		1,751	2,250	2,647	823	—	833
Unimproved land	12,147		11,651	12,328	12,580	8,109	—	4,038
Developed lots for operative builders	176		457	488	848	1	—	175
Commercial lots	1,979		1,333	1,521	2,050	217	—	1,762
Other construction	—		—	4,236	4,244	—	—	—
Total land, lot and other construction	28,788		33,382	38,405	42,774	11,278	—	17,510
Owner occupied	10,503		12,130	10,952	13,057	8,620	—	1,883
Non-owner occupied	4,055		4,354	3,446	3,179	3,378	—	677
Total commercial real estate	14,558		16,484	14,398	16,236	11,998	—	2,560
Commercial and industrial	7,123		6,046	3,993	5,805	5,789	1,313	21
Agriculture	3,979		3,220	3,281	2,769	2,544	1,435	—
1st lien	11,332		11,041	10,691	9,867	6,171	1,261	3,900
Junior lien	1,489		1,111	668	739	1,349	—	140
Total 1-4 family	12,821		12,152	11,359	10,606	7,520	1,261	4,040
Multifamily residential	432		432	113	—	432	—	—
Home equity lines of credit	5,413		5,432	5,486	4,742	4,898	382	133
Other consumer	275		280	228	164	168	1	106
Total consumer	5,688		5,712	5,714	4,906	5,066	383	239
Other	1,802		1,800	1,800	29	—	1,802	—
Total	$	75,581	80,223	80,079	84,222	45,017	6,194	24,370

19

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, 2016		Mar 31, 2016		Dec 31, 2015		Jun 30, 2015		Mar 31, 2016		Dec 31, 2015		Jun 30, 2015
Custom and owner occupied construction	$	375	$	—	$	462	$	—	n/m		(19	)%	n/m
Pre-sold and spec construction	304		304		181		—		—	%	68	%	n/m
Total residential construction	679		304		643		—		123	%	6	%	n/m
Land development	37		198		447		—		(81	)%	(92	)%	n/m
Consumer land or lots	676		796		166		158		(15	)%	307	%	328	%
Unimproved land	879		1,284		774		755		(32	)%	14	%	16	%
Developed lots for operative builders	166		—		—		—		n/m		n/m		n/m
Commercial lots	—		—		—		66		n/m		n/m		(100	)%
Other construction	—		—		337		—		n/m		(100	)%	n/m
Total land, lot and other construction	1,758		2,278		1,724		979		(23	)%	2	%	80	%
Owner occupied	2,975		4,552		2,760		4,727		(35	)%	8	%	(37	)%
Non-owner occupied	5,364		1,466		923		8,257		266	%	481	%	(35	)%
Total commercial real estate	8,339		6,018		3,683		12,984		39	%	126	%	(36	)%
Commercial and industrial	4,956		4,907		1,968		6,760		1	%	152	%	(27	)%
Agriculture	804		659		1,014		353		22	%	(21	)%	128	%
1st lien	2,667		5,896		6,272		2,891		(55	)%	(57	)%	(8	)%
Junior lien	1,251		759		1,077		335		65	%	16	%	273	%
Total 1-4 family	3,918		6,655		7,349		3,226		(41	)%	(47	)%	21	%
Multifamily Residential	—		—		662		671		n/m		(100	)%	(100	)%
Home equity lines of credit	2,253		2,528		1,046		2,464		(11	)%	115	%	(9	)%
Other consumer	736		607		1,227		996		21	%	(40	)%	(26	)%
Total consumer	2,989		3,135		2,273		3,460		(5	)%	32	%	(14	)%
Other	36		40		97		41		(10	)%	(63	)%	(12	)%
Total	$	23,479	$	23,996	$	19,413	$	28,474	(2	)%	21	%	(18	)%

_______

n/m - not measurable

20

Glacier Bancorp, Inc.

Credit Quality Summary by Regulatory Classification (continued)

	Net Charge-Offs (Recoveries), Year-to-Date Period Ending, By Loan Type									Charge-Offs	Recoveries
(Dollars in thousands)	Jun 30, 2016			Mar 31, 2016		Dec 31, 2015		Jun 30, 2015		Jun 30, 2016	Jun 30, 2016
Pre-sold and spec construction	$	(37	)	(28	)	(53	)	(23	)	—	37
Land development	(2,342		)	(100	)	(288	)	(807	)	27	2,369
Consumer land or lots	(351		)	(240	)	66		(77	)	25	376
Unimproved land	(46		)	(34	)	(325	)	(86	)	—	46
Developed lots for operative builders	(54		)	(12	)	(85	)	(98	)	—	54
Commercial lots	21			23		(26	)	(3	)	24	3
Other construction	—			—		(1	)	(1	)	—	—
Total land, lot and other construction	(2,772		)	(363	)	(659	)	(1,072	)	76	2,848
Owner occupied	(51		)	(27	)	247		271		8	59
Non-owner occupied	(3		)	(1	)	93		109		—	3
Total commercial real estate	(54		)	(28	)	340		380		8	62
Commercial and industrial	(112		)	69		1,389		1,007		590	702
Agriculture	(1		)	(1	)	50		(7	)	—	1
1st lien	245			47		834		(49	)	315	70
Junior lien	(56		)	(15	)	(125	)	(129	)	68	124
Total 1-4 family	189			32		709		(178	)	383	194
Multifamily residential	229			229		(318	)	(29	)	229	—
Home equity lines of credit	(25		)	179		740		206		145	170
Other consumer	149			95		143		(3	)	255	106
Total consumer	124			274		883		203		400	276
Other	313			10		(1	)	—		846	533
Total	$	(2,121	)	194		2,340		281		2,532	4,653

Visit our website atwww.glacierbancorp.com

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