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

Exhibt 99.1

Glacier Bancorp, Inc. Earnings for Quarter and Nine Months Ended September 30, 2005

HIGHLIGHTS:
*	Net earnings for the quarter were a record $13.575 million, up 16 percent from last year’s quarter.
*	Net earnings year-to-date of $38.185 million, up 16 percent from the same period last year.
*	Diluted quarterly earnings per share of $.42, up 14 percent from last year’s quarter.
*	Diluted earnings per share of $1.21, up 14 percent from last year-to-date.
*	Net interest margin expanded 15 basis points from prior quarter to 4.27 percent.
*	Loans outstanding increased $540 million, or 31 percent, since December 31, 2004.
*	Non-interest bearing deposits increased $224 million, or 49 percent during 2005.
*	Cash dividend of $.15 declared, which is an increase of 7 percent over the prior year’s quarter.
KALISPELL, Mont., Oct. 27 /PRNewswire-FirstCall/ --

Earnings Summary
(Unaudited - $ in thousands, except per share data)

	Three months ended September 30,						Nine months ended September 30,
	2005			2004			2005			2004
Net earnings	$	13,575		$	11,680		$	38,185		$	33,053
Diluted earnings per share	$	0.42		$	0.37		$	1.21		$	1.06
Return on average assets (annualized)		1.52	%		1.57	%		1.51	%		1.54	%
Return on average equity (annualized)		17.88	%		18.12	%		17.67	%		17.74	%
Return on average tangible equity (annualized)		25.05	%		22.25	%		23.97	%		21.93	%

          Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net quarterly earnings of $13.575 million, an increase of $1.9 million, or 16 percent, over the $11.680 million for the third quarter of 2004.  Diluted earnings per share for the quarter of $.42 is an increase of 14 percent over the per share earnings of $.37 for the same quarter of 2004.  “The third quarter again showed solid performance in the key areas on which we continue to focus,” said Mick Blodnick, President and Chief Executive Officer.  “We had a significant increase in our net interest margin, asset quality remained sound, and our loans and non-interest bearing deposits grew at 20% and 34%, respectively, between the second and third quarter on an annualized basis.”  Annualized return on average assets and return on average equity for the quarter were 1.52 percent and 17.88 percent, respectively, which compares with prior year returns for the third quarter of 1.57 percent and 18.12 percent.  Annualized return on tangible average equity, a non-GAAP performance measure, for the third quarter of 2005 was 25.05 percent compared to 22.25 percent in the third quarter of last year.

          Net earnings for the nine months ended September 30, 2005 were $38.185 million, which is an increase of $5.132 million, or 16 percent over the prior year.  Diluted earnings per share of $1.21 is an increase of 14 percent over the $1.06 earned in the first nine months of 2004.  The 2005 nine month annualized return on average assets and annualized return on average equity was 1.51 percent and 17.67 percent, respectively, which compares with the prior year nine month returns of 1.54 percent and 17.74 percent.  Annualized return on average tangible equity for the current year-to-date was 23.97 percent, up from 21.93 percent for the same period last year.  Annualized return on average tangible equity, a non-GAAP measure excluding the impact of goodwill and core deposit intangibles from acquisitions, provides a more consistent measure of performance.

          The results of operations and financial condition include the acquisitions from the completion dates forward.  The following table provides information on selected classifications of assets and liabilities acquired:

(Unaudited - $in thousands)

			First National Bank		Citizens Community Bank		Bonners Ferry Branch
	Total		Feb. 28, 2005		April 1, 2005		May 20, 2005
Acquisition Date
Total assets	$	417,388		267,126		126,394		23,868
Investments		132,649		124,733		7,916		—
Net loans		181,965		87,678		89,240		5,047
Non-interest bearing deposits		126,915		95,053		25,789		6,073
Interest bearing deposits		222,482		129,697		75,008		17,777

Assets
(Unaudited $- in thousands)

	Sept. 30, 2005			Dec. 31, 2004			Sept. 30, 2004			$ change from Dec. 31, 2004			$ change from Sept. 30, 2004
Cash on hand and in banks	$	114,781			79,300			69,625			35,481			45,156
Investments, interest bearing deposits, FHLB stock, FRB stock, and Fed Funds		1,051,739			1,098,633			1,145,667			(46,894	)		(93,928	)
Loans:
Real estate		538,339			393,141			373,662			145,198			164,677
Commercial		1,282,978			991,081			973,869			291,897			309,109
Consumer		447,238			344,075			338,158			103,163			109,080
Total loans		2,268,555			1,728,297			1,685,689			540,258			582,866
Allowance for loan losses		(34,506	)		(26,492	)		(26,075	)		(8,014	)		(8,431	)
Total loans net of allowance for losses		2,234,049			1,701,805			1,659,614			532,244			574,435
Other assets		189,311			130,999			127,793			58,312			61,518
Total Assets	$	3,589,880			3,010,737			3,002,699			579,143			587,181

          At September 30, 2005 total assets were $3.590 billion, which is $587 million greater than the September 30, 2004 assets of $3.003 billion, an increase of 20 percent, and $579 million greater than at December 31, 2004, an increase of 19 percent.  Without $417 million in assets acquired in acquisitions, total assets were up $170 million from a year ago, or 6 percent, and $162 million, or 5 percent from year end 2004.

          Total loans have increased $583 million from September 30, 2004, or 35 percent, with the growth occurring in all loan categories.  Commercial loans have increased $309 million, or 32 percent, real estate loans gained $165 million, or 44 percent, and consumer loans grew by $109 million, or 32 percent.  Acquisitions added $182 million of the total with internal growth contributing $401 million, a 24 percent increase.

          Loan volume continues to be very strong with internal loan growth of $358 million since December 31, 2004, or 21 percent.  Including loans acquired, commercial loans are up by $292 million, or 29 percent, real estate loans increased by $145 million, or 37 percent, and consumer loans gained $103 million, or 30 percent.  “Loan growth was again very robust during the third quarter,” Blodnick said.  “We would expect some seasonal slowdown to these growth rates over the next two quarters.”

          Investment securities, including interest bearing deposits in other financial institutions, and federal funds sold have decreased $94 million from September 30, 2004.  Without the acquisitions, investments would have declined $227 million, or 20 percent, from September 30, 2004.  Investment securities at quarter end represented 29% of total assets versus 38% in the prior year period.  Cash flow from investment pay downs is being used to fund the significant growth in loans.

Liabilities
(Unaudited - $ in thousands)

	Sept. 30, 2005		Dec. 31, 2004		Sept. 30, 2004		$ change from Dec. 31, 2004			$ change from Sept. 30, 2004
Non-interest bearing deposits	$	684,151		460,059		438,578		224,092			245,573
Interest bearing deposits		1,702,977		1,269,649		1,249,543		433,328			453,434
Advances from Federal Home Loan Bank		654,368		818,933		854,056		(164,565	)		(199,688	)
Securities sold under agreements to repurchase and other borrowed funds		123,509		81,215		82,686		42,294			40,823
Other liabilities		34,475		30,697		34,858		3,778			(383	)
Subordinated debentures		85,000		80,000		80,000		5,000			5,000
Total liabilities	$	3,284,480		2,740,553		2,739,721		543,927			544,759

          Non-interest bearing deposits have increased $246 million, or 56 percent, since September 30, 2004.  Without acquisitions the increase was $119 million, or 27 percent.  Since December 31, 2004 the increase was $224 million, and without acquisitions $97 million, or 21 percent.  This continues to be a primary focus of our banks and the programs we have initiated this past year continue to gain momentum.  Interest bearing deposits, including $106 million in broker originated certificates of deposit, have increased $453 million from September 30, 2004 with $222 million from the acquisitions.  Since December 31, 2004, without acquisitions, interest bearing deposits increased $211 million, or 17 percent.  This growth in deposits, a low cost stable funding source, gives us increased flexibility in managing our asset mix. Federal Home Loan Bank advances decreased $200 million, and repurchase agreements and other borrowed funds increased $41 million from September 30, 2004.  Since December 31, 2004 Federal Home Loan Bank advances declined $165 million, and repurchase agreements and other borrowed funds increased $42 million.

Stockholders’ equity
(Unaudited - $ in thousands except per share data)

	Sept. 30, 2005			Dec. 31, 2004			Sept. 30, 2004			$ change from Dec. 31, 2004			$ change from Sept. 30, 2004
Common equity	$	301,192			264,250			254,897			36,942			46,295
Accumulated other
comprehensive income		4,208			5,934			8,081			(1,726	)		(3,873	)
Total stockholders’ equity		305,400			270,184			262,978			35,216			42,422
Core deposit intangible, net, and goodwill		(79,898	)		(42,315	)		(42,580	)		(37,583	)		(37,318
Tangible stockholders’ equity	$	225,502			227,869			220,398			(2,367	)		5,104
Stockholders’ equity to total assets		8.51	%		8.97	%		8.76	%
Tangible stockholders’ equity to total tangible assets		6.42	%		7.68	%		7.45	%
Book value per common share	$	9.74			8.80			8.58			0.94			1.16
Market price per share at end of quarter	$	30.87			27.23			23.33			3.64			7.54

          Total equity and book value per share amounts have increased substantially from September 30, 2004 and from year end 2004, the result of issuing stock for the Citizens Community Bank acquisition, earnings retention, and stock options exercised.  Accumulated other comprehensive income, representing net unrealized gains on securities available for sale, decreased $3.873 million from September 30, 2004 and $1.726 million from year end 2004, primarily a function of interest rate changes.

Operating Results for Three Months Ended September 30, 2005
Compared to September 30, 2004

          Operating results include amounts resulting from the acquisitions from the acquisition date forward.

Revenue summary
(Unaudited - $in thousands)

	Three months ended September 30,
	2005			2004			$ change			% change
Net interest income	$	33,760		$	27,385		$	6,375			23	%
Non-interest income
Service charges, loan fees, and other fees		8,381			6,437			1,944			30	%
Gain on sale of loans		3,258			2,211			1,047			47	%
Loss on sale of investments		(1	)		—			(1	)		n/m
Other income		698			489			209			43	%
Total non-interest income		12,336			9,137			3,199			35	%
	$	46,096		$	36,522		$	9,574			26	%
Tax equivalent net interest margin		4.27	%		4.11	%

          Net Interest Income
          Net interest income for the quarter increased $6.375 million, or 23 percent, over the same period in 2004, and $1.673 million from the second quarter of 2005.  Total interest income increased $11.930 million from the prior year’s quarter, or 32 percent, while total interest expense was $5.555 million, or 54 percent higher.  The increase in interest expense is primarily attributable to the volume increase in interest bearing liabilities, and increases in short term interest rates during 2004 and 2005.  The Federal Reserve Bank has increased the targeted fed funds rates eight times, 200 basis points, in the last twelve months.  The net interest margin as a percentage of earning assets, on a tax equivalent basis, was 4.27 percent which was higher than the 4.11 percent result for the third quarter of 2004.  The margin for the third quarter also increased from the 4.12 percent in the second quarter of 2005 and the 4.08 percent experienced for the first quarter of 2005.  “The linked quarter improvement in our net interest margin the past two quarters has been accomplished without a FHLB dividend,” Blodnick said.  FHLB dividends received were $405 thousand less than the same quarter last year.

          Non-interest Income
          Fee income increased $1.944 million, or 30 percent, over the same period last year, driven primarily by an increased number of loan and deposit accounts, acquisitions, and additional customer services offered.  Gain on sale of loans increased $1.047 million, or 47 percent, from the third quarter of last year.  Loan origination activity for housing construction and purchases remains strong in our markets and has offset much of the reduction in refinance activity experienced last year.  Other income was $209 thousand, or 43 percent, higher than the third quarter of 2004 resulting from activity increases in a variety of sources.

Non-interest expense summary
(Unaudited - $in thousands)

	Three months ended September 30,
	2005		2004		$ change		% change
Compensation and employee benefits	$	13,685	$	10,067	$	3,618		36	%
Occupancy and equipment expense		3,356		2,662		694		26	%
Outsourced data processing		615		346		269		78	%
Core deposit intangibles amortization		388		265		123		46	%
Other expenses		6,132		4,649		1,483		32	%
Total non-interest expense	$	24,176	$	17,989	$	6,187		34	%

          Non-interest Expense
          Non-interest expense increased by $6.187 million, or 34 percent, from the same quarter of 2004.  Compensation and benefit expense increased $3.618 million, or 36 percent from the third quarter of 2004, with acquisitions, additional bank branches, commissions on mortgage loan production, normal compensation increases for job performance and increased cost for benefits accounting for the majority of the increase.  The number of full-time-equivalent employees has increased from 841 to 1052, a 25 percent increase, since September 30, 2004.   Occupancy and equipment expense increased $694 thousand, or 26 percent, reflecting the acquisitions, cost of additional locations and facility upgrades.  Other expenses increased $1.483 million, or 32 percent, primarily from acquisitions, additional marketing expenses, and costs associated with new branch offices.  The efficiency ratio (non-interest expense/net interest income + non-interest income) was 52 percent for the 2005 quarter, up from 49 percent for the 2004 quarter.

Credit quality information
(Unaudited - $in thousands)

	Sept. 30, 2005			Dec. 31, 2004			Sept. 30, 2004
Allowance for loan losses	$	34,506		$	26,492		$	26,075
Non-performing assets		7,862			9,608			12,308
Allowance as a percentage of non performing assets		439	%		276	%		212	%
Non-performing assets as a percentage of total assets		0.22	%		0.32	%		0.41	%
Allowance as a percentage of total loans		1.52	%		1.53	%		1.55	%
Net charge-offs as a percentage of loans		0.021	%		0.098	%		0.054	%

          Allowance for Loan Loss and Non-Performing Assets
          Non-performing assets as a percentage of total assets at September 30, 2005 were at .22 percent, a decrease from .41 percent at September 30, 2004 and .32 percent at December 31, 2004.  This compares favorably to the Federal Reserve Bank Peer Group average of .45 percent at June 30, 2005, the most recent information available.  The allowance for loan losses was 439 percent of non-performing assets at September 30, 2005, compared to 212 percent a year ago.  The allowance, including $3.834 million from acquisitions, has increased $8.431 million, or 32 percent, from a year ago. The allowance of $34.506 million, is 1.52 percent of September 30, 2005 total loans outstanding, down slightly from the 1.55 percent a year ago.  The third quarter provision for loan losses expense was $1.607 million, an increase of $407 thousand from the same quarter in 2004.  The additional expense relates to the continuing growth in the number and average size of loans.

Operating Results for Nine Months Ended September 30, 2005
Compared to September 30, 2004

Revenue summary
(Unaudited - $ in thousands)

	Nine months ended September 30,
	2005			2004			$ change			% change
Net interest income	$	94,303		$	79,553		$	14,750			19	%
Non-interest income
Service charges, loan fees, and other fees		22,713			17,851			4,862			27	%
Gain on sale of loans		8,234			6,008			2,226			37	%
Loss on sale of investments		(138	)		—			(138	)		n/m
Other income		2,148			1,537			611			40	%
Total non-interest income		32,957			25,396			7,561			30	%
	$	127,260		$	104,949		$	22,311			21	%
Tax equivalent net interest margin		4.16	%		4.15	%

          Net Interest Income
          Net interest income for the nine months increased $14.750 million, or 19 percent, over the same period in 2004.  Total interest income increased $28.076 million, or 26 percent, while total interest expense was $13.326 million, or 46 percent higher.  The increase in interest expense is primarily attributable to the volume increase in interest bearing liabilities, and increases in short term interest rates during 2004 and 2005. The net interest margin as a percentage of earning assets, on a tax equivalent basis, was 4.16 percent which was one basis point higher than the 4.15 percent result for the same nine months of 2004.  The net interest margin was impacted by a reduction in FHLB dividends of $1.103 million in 2005 compared to the same period last year.

          Non-interest Income
          Total non-interest income increased $7.561 million, or 30 percent in 2005. Fee income increased $4.862 million, or 27 percent, over the same period last year, driven primarily by an increased number of loan and deposit accounts, acquisitions, and additional customer product and services offered.  Gain on sale of loans increased $2.226 million, or 37 percent, from the first nine months of last year.  Loan origination activity for housing construction and purchases remains strong in our markets and has offset much of the reduction in refinance activity experienced last year.  “We continue to experience strong population growth in many of our markets fueling demand for housing,” Blodnick said.  Other income was $611 thousand higher than 2004 of which $220 thousand was from the sale of property held for future expansion that was no longer needed, and the remainder from various volume increases.

Non-interest expense summary
(Unaudited - $ in thousands)

	Nine months ended September 30,
	2005		2004		$ change		% change
Compensation and employee benefits	$	37,103	$	29,724	$	7,379		25	%
Occupancy and equipment expense		9,363		8,026		1,337		17	%
Outsourced data processing		1,270		1,127		143		13	%
Core deposit intangibles amortization		1,055		810		245		30	%
Other expenses		16,935		13,736		3,199		23	%
Total non-interest expense	$	65,726	$	53,423	$	12,303		23	%

          Non-interest Expense
          Non-interest expense increased by $12.303 million, or 23 percent, from the same nine months of 2004.  Compensation and benefit expense increased $7.379 million, or 25 percent from the prior year, with acquisitions, additional bank branches, commissions on mortgage loan production, normal compensation increases for job performance and increased cost for benefits accounting for the majority of the increase.  Occupancy and equipment expense increased $1.337 million, or 17 percent, reflecting the acquisitions, cost of additional locations and facility upgrades.  Other expenses increased $3.199 million, or 23 percent, primarily from acquisitions, additional marketing expenses, and costs associated with new branch offices.  The efficiency ratio (non-interest expense/net interest income + non-interest income) increased slightly to 52 percent up from 51 percent for the first nine months of 2005.

          Allowance for Loan Loss and Non-Performing Assets
          The provision expense for loan losses was $4.649 million for the first nine months of 2005, an increase of $1.654 million, or 55 percent, from the same period in 2004.  Net charge offs of $470 thousand during the first nine months were .021 percent of loans outstanding, or .028 percent annualized, which is substantially lower than the full year 2004 percentage of .098.

          Cash dividend
          On September 28, 2005, the board of directors declared a cash dividend of $.15 payable October 20, 2005 to shareholders of record on October 11, 2005. This is an increase of 7 percent over the dividend declared this quarter last year.

          Completed acquisitions
          The acquisition of First National Bank-West Co., a bank holding company for First National Bank-West, Evanston, Wyoming was completed as of the close of business February 28, 2005.  This bank has seven locations in western Wyoming and became the eighth subsidiary bank of the Company and the first to be located in the state of Wyoming.

          The acquisition of Citizens Bank Holding Company and its subsidiary bank Citizens Community Bank, Pocatello, Idaho, with assets of approximately $126 million, was completed as of close of business March 31, 2005.  This bank operates from three banking offices in Pocatello and Idaho Falls, and a loan production office in Rexburg, Idaho.  As of April 1, 2005 this bank became the ninth subsidiary bank of the Company.

          Mountain West Bank of Coeur d’Alene completed the purchase of the Zions First National Bank Bonners Ferry, Idaho branch with total deposits of approximately $24 million on May 20, 2005.

          Pending acquisitions
          On July 14, 2005 the Company announced the signing of a definitive agreement to acquire Thompson Falls Holding Co. and its subsidiary First State Bank with banking offices in Thompson Falls, Plains, and Dillon, Montana.  The Dillon office, with deposits of $9 million, was sold to another Montana bank on October 21, 2005.  First State Bank, with total assets of approximately $142 million, will merge into Glacier Bancorp, Inc. subsidiary First Security Bank of Missoula.  This transaction is expected to be completed on October 31, 2005.

           Headquartered in Kalispell, Montana, Glacier Bancorp, Inc. conducts business from Glacier Bank of Kalispell, First Security Bank of Missoula, Glacier Bank of Whitefish, Valley Bank of Helena, Big Sky Western Bank of Bozeman, Western Security Bank of Billings, all located in Montana, Mountain West Bank located in Idaho with two branches in Utah and two in Washington, First National Bank -- West, Evanston, Wyoming, and Citizens Community Bank Pocatello, Idaho.

           This news release includes forward looking statements, which describe management’s expectations regarding future events and developments such as future operating results, growth in loans and deposits, continued success of the Company’ style of banking and the strength of the local economies in which it operates.  Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.  In addition to discussions about risks and uncertainties set forth from time to time in the Company’s public filings, factors that may cause actual results to differ materially from those contemplated by such forward looking statements include, among others, the following possibilities:  (1) local, national and international economic conditions are less favorable than expected or have a more direct and pronounced effect on the Company than expected and adversely affect the company’s ability to continue its internal growth at historical rates and maintain the quality of its earning assets; (2) changes in interest rates reduce interest margins more than expected and negatively affect funding sources; (3) projected business increases following strategic expansion or opening or acquiring new banks and/or branches are lower than expected; (4) costs or difficulties related to the integration of acquisitions are greater than expected; (5) competitive pressure among financial institutions increases significantly; (6) legislation or regulatory requirements or changes adversely affect the businesses in which the Company is engaged.

          Visit our website at www.glacierbancorp.com

GLACIER BANCORP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION

($ in thousands except per share data)

	Sept. 30, 2005			Sept. 30, 2004			Dec. 31, 2004
		(unaudited)						(unaudited)
Assets:
Cash on hand and in banks	$	114,781			79,300			69,625
Federal funds sold		8,137			—			—
Interest bearing cash deposits		19,117			13,007			9,001
Investment securities, available-for-sale		1,024,485			1,085,626			1,136,666
Net loans receivable:
Real estate loans		538,339			393,141			373,662
Commercial loans		1,282,978			991,081			973,869
Consumer and other loans		447,238			344,075			338,158
Allowance for losses		(34,506	)		(26,492	)		(26,075	)
Total loans, net		2,234,049			1,701,805			1,659,614
Premises and equipment, net		73,579			55,732			54,244
Real estate and other assets owned, net		1,803			2,016			493
Accrued interest receivable		17,515			15,637			15,494
Core deposit intangible, net		7,516			4,939			5,204
Goodwill		72,382			37,376			37,376
Other assets		16,516			15,299			14,982
	$	3,589,880			3,010,737			3,002,699
Liabilities and stockholders’ equity:
Non-interest bearing deposits	$	684,151			460,059			438,578
Interest bearing deposits		1,702,977			1,269,649			1,249,543
Advances from Federal Home Loan Bank of Seattle		654,368			818,933			854,056
Securities sold under agreements to repurchase		111,196			76,158			73,074
Other borrowed funds		12,313			5,057			9,612
Accrued interest payable		5,784			4,864			5,439
Deferred tax liability		7,644			8,392			8,375
Subordinated debentures		85,000			80,000			80,000
Other liabilities		21,047			17,441			21,044
Total liabilities		3,284,480			2,740,553			2,739,721
Preferred shares, 1,000,000 shares authorized. None outstanding		—			—			—
Common stock, $.01 par value per share. 62,500,000 shares authorized		313			307			306
Paid-in capital		240,197			227,552			225,586
Retained earnings - substantially restricted		60,682			36,391			29,005
Accumulated other comprehensive income		4,208			5,934			8,081
Total stockholders’ equity		305,400			270,184			262,978
	$	3,589,880			3,010,737			3,002,699
Number of shares outstanding		31,345,769			30,686,763			30,634,181
Book value of equity per share		9.74			8.80			8.58

GLACIER BANCORP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited - $in thousands except per share data)

	Three months ended September 30,						Nine months ended September 30,
	2005			2004			2005			2004
Interest income:
Real estate loans	$	8,946			5,865			23,658			16,554
Commercial loans		21,803			14,744			57,915			41,682
Consumer and other loans		7,666			5,166			20,407			14,914
Investment securities and other		11,155			11,865			34,642			35,396
Total interest income		49,570			37,640			136,622			108,546
Interest expense:
Deposits		6,914			3,510			16,565			10,406
Federal Home Loan Bank of Seattle advances		5,830			4,787			16,843			13,723
Securities sold under agreements to repurchase		804			231			1,803			565
Subordinated debentures		1,633			1,547			4,817			4,064
Other borrowed funds		629			180			2,291			235
Total interest expense		15,810			10,255			42,319			28,993
Net interest income		33,760			27,385			94,303			79,553
Provision for loan losses		1,607			1,200			4,649			2,995
Net interest income after provision for loan losses		32,153			26,185			89,654			76,558
Non-interest income:
Service charges and other fees		6,575			5,331			18,020			14,386
Miscellaneous loan fees and charges		1,806			1,106			4,693			3,465
Gain on sale of loans		3,258			2,211			8,234			6,008
Loss on sale of investments		(1	)		—			(138	)		—
Other income		698			489			2,148			1,537
Total non-interest income		12,336			9,137			32,957			25,396
Non-interest expense:
Compensation, employee benefits and related expenses		13,685			10,067			37,103			29,724
Occupancy and equipment expense		3,356			2,662			9,363			8,026
Outsourced data processing expense		615			346			1,270			1,127
Core deposit intangibles amortization		388			265			1,055			810
Other expenses		6,132			4,649			16,935			13,736
Total non-interest expense		24,176			17,989			65,726			53,423
Earnings before income taxes		20,313			17,333			56,885			48,531
Federal and state income tax expense		6,738			5,653			18,700			15,478
Net earnings	$	13,575			11,680			38,185			33,053
Basic earnings per share		0.43			0.38			1.23			1.08
Diluted earnings per share		0.42			0.37			1.21			1.06
Dividends declared per share		0.15			0.14			0.44			0.41
Return on average assets (annualized)		1.52	%		1.57	%		1.51	%		1.54	%
Return on average equity (annualized)		17.88	%		18.12	%		17.67	%		17.74	%
Return on tangible average equity (annualized)		25.05	%		22.25	%		23.97	%		21.93	%
Average outstanding shares - basic		31,304,413			30,600,409			31,100,946			30,535,546
Average outstanding shares - diluted		31,960,244			31,164,520			31,673,706			31,073,706

AVERAGE BALANCE SHEET
(Unaudited - $ in Thousands)

	For the Three months ended 9-30-05
	Average Balance		Interest and Dividends		Average Yield/ Rate
ASSETS
Real Estate Loans	$	524,678		8,946		6.82	%
Commercial Loans		1,245,050		21,803		6.95	%
Consumer and Other Loans		435,822		7,666		6.98	%
Total Loans		2,205,550		38,415		6.91	%
Tax - Exempt Investment Securities (1)		282,457		3,450		4.89	%
Other Investment Securities		798,705		7,705		3.86	%
Total Earning Assets		3,286,712		49,570		6.03	%
Goodwill and Core Deposit Intangible		80,130
Other Non-Earning Assets		181,885
TOTAL ASSETS	$	3,548,727
LIABILITIES AND STOCKHOLDERS’ EQUITY
NOW Accounts	$	319,332		201		0.25	%
Savings Accounts		211,063		268		0.50	%
Money Market Accounts		506,650		2,065		1.62	%
Certificates of Deposit		589,943		4,380		2.95	%
FHLB Advances		694,561		5,830		3.33	%
Repurchase Agreements and Other Borrowed Funds		261,854		3,066		4.65	%
Total Interest Bearing Liabilities		2,583,403		15,810		2.43	%
Non-interest Bearing Deposits		635,032
Other Liabilities		29,007
Total Liabilities		3,247,442
Common Stock		313
Paid-In Capital		239,593
Retained Earnings		56,926
Accumulated Other
Comprehensive Income		4,453
Total Stockholders’ Equity		301,285
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,548,727
Net Interest Income			$	33,760
Net Interest Spread						3.60	%
Net Interest Margin on Average Earning assets						4.08	%
Return on Average Assets (annualized)						1.52	%
Return on Average Equity (annualized)						17.88	%

(1) Excludes tax effect on non-taxable investment security income

AVERAGE BALANCE SHEET
(Unaudited - $ in Thousands)

	For the Three months ended 9-30-05
	Average Balance		Interest and Dividends		Average Yield/ Rate
ASSETS
Real Estate Loans	$	472,892		23,658		6.67	%
Commercial Loans		1,149,925		57,915		6.73	%
Consumer and Other Loans		405,210		20,407		6.73	%
Total Loans		2,028,027		101,980		6.72	%
Tax - Exempt Investment Securities (1)		282,675		10,382		4.90	%
Other Investment Securities		822,973		24,260		3.93	%
Total Earning Assets		3,133,675		136,622		5.81	%
Goodwill and Core Deposit Intangible		70,044
Other Non-Earning Assets		170,961
TOTAL ASSETS	$	3,374,680
LIABILITIES AND STOCKHOLDERS’ EQUITY
NOW Accounts	$	305,394		542		0.24	%
Savings Accounts		200,228		677		0.45	%
Money Market Accounts		476,947		5,085		1.43	%
Certificates of Deposit		516,167		10,261		2.66	%
FHLB Advances		725,352		16,843		3.10	%
Repurchase Agreements and Other Borrowed Funds		275,700		8,911		4.32	%
Total Interest Bearing Liabilities		2,499,788		42,319		2.26	%
Non-interest Bearing Deposits		555,197
Other Liabilities		30,780
Total Liabilities		3,085,765
Common Stock		311
Paid-In Capital		235,410
Retained Earnings		48,830
Accumulated Other
Comprehensive Income		4,364
Total Stockholders’ Equity		288,915
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,374,680
Net Interest Income			$	94,303
Net Interest Spread						3.55	%
Net Interest Margin on Average Earning assets						4.02	%
Return on Average Assets (annualized)						1.51	%
Return on Average Equity (annualized)						17.67	%

(1) Excludes tax effect on non-taxable investment security income

SOURCE  Glacier Bancorp, Inc.
          -0-                                                                              10/27/2005
          /CONTACT:  Michael J. Blodnick, +1-406-751-4701, or James H. Strosahl, +1-406-751-4702, both of Glacier Bancorp, Inc./
          /Web site:  http://www.glacierbancorp.com /
          (GBCI)

_