HIGHLIGHTS:


Glacier Bancorp, Inc. (Nasdaq:GBCI) reported net income of $28.7 million for the current quarter, an increase of $1.0 million, or 4 percent, from the $27.7 million of net income for the prior year first quarter.  Diluted earnings per share for the current quarter was $0.38 per share, an increase of $0.01, or 3 percent, from the prior year first quarter diluted earnings per share of $0.37.  Included in the current quarter was $135 thousand from acquisition-related expenses and $831 thousand 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’s Core Consolidation Project will occur throughout the current year and is expected to be completed by year end.   “The first quarter was a nice start to the year for us,” said Mick Blodnick, President and Chief Executive Officer.  “To produce this level of results at a time when we also had significant costs and time allocated to a number of major internal projects is a testament to the great work by our staff this quarter.  Although these projects will run through the rest of the year, in the future they will streamline multiple functions and allow us to operate more efficiently,” Blodnick said.

Asset Summary

              $ Change from
(Dollars in thousands) Mar 31,  2016   Dec 31,  2015   Mar 31,  2015   Dec 31,  2015   Mar 31,  2015
Cash and cash equivalents $ 150,861     193,253     183,466     (42,392 )   (32,605 )
Investment securities, available-for-sale 2,604,625     2,610,760     2,544,093     (6,135 )   60,532  
Investment securities, held-to-maturity 691,663     702,072     570,285     (10,409 )   121,378  
Total investment securities 3,296,288     3,312,832     3,114,378     (16,544 )   181,910  
Loans receivable                  
Residential real estate 685,026     688,912     637,465     (3,886 )   47,561  
Commercial real estate 2,680,691     2,633,953     2,418,843     46,738     261,848  
Other commercial 1,172,956     1,099,564     1,007,173     73,392     165,783  
Home equity 423,895     420,901     402,970     2,994     20,925  
Other consumer 234,625     235,351     221,218     (726 )   13,407  
Loans receivable 5,197,193     5,078,681     4,687,669     118,512     509,524  
Allowance for loan and lease losses (130,071 )   (129,697 )   (129,856 )   (374 )   (215 )
Loans receivable, net 5,067,122     4,948,984     4,557,813     118,138     509,309  
Other assets 606,471     634,163     619,439     (27,692 )   (12,968 )
Total assets $ 9,120,742     9,089,232     8,475,096     31,510     645,646  

Total investment securities of $3.296 billion at March 31, 2016 decreased $16.5 million, or 50 basis points, during the current quarter and increased $182 million, or 6 percent, from March 31, 2015.  The Company continues to selectively purchase investment securities when the Company has excess liquidity.  Investment securities represented 36 percent of total assets at March 31, 2016 compared to 36 percent of total assets at December 31, 2015 and 37 percent at March 31, 2015.

The loan portfolio increased $119 million, or 9 percent annualized, during the current quarter.  The loan category with the largest dollar and percentage increase during the current quarter was other commercial loans which increased $73.4 million, or 7 percent, of which $35.6 million of the increase was from municipal and SBA loans.  Excluding the acquisition of Cañon National Bank (“Cañon”) in October 2015, the loan portfolio increased $350 million, or 7 percent, since March 31, 2015 with $152 million and $150 million of the increase coming from growth in commercial real estate and other commercial loans, respectively.  “Our loan growth in the quarter was exceptional especially considering it came in the first quarter of the year,” Blodnick said.  “A substantial portion of the growth came from municipal loans, something all of our Banks have worked extremely hard at generating.  Hopefully, we can continue to grow the loan portfolio with more of these solid credits.”

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,  2016   Dec 31,  2015   Mar 31,  2015
Allowance for loan and lease losses          
Balance at beginning of period $ 129,697     129,753     129,753  
Provision for loan losses 568     2,284     765  
Charge-offs (1,163 )   (7,001 )   (1,297 )
Recoveries 969     4,661     635  
Balance at end of period $ 130,071     129,697     129,856  
Other real estate owned $ 22,085     26,815     28,124  
Accruing loans 90 days or more past due 4,615     2,131     2,357  
Non-accrual loans 53,523     51,133     60,287  
Total non-performing assets 1 $ 80,223     80,079     90,768  
Non-performing assets as a percentage of subsidiary assets 0.88 %   0.88 %   1.07 %
Allowance for loan and lease losses as a percentage of non-performing loans 224 %   244 %   207 %
Allowance for loan and lease losses as a percentage of total loans 2.50 %   2.55 %   2.77 %
Net charge-offs as a percentage of total loans %   0.05 %   0.01 %
Accruing loans 30-89 days past due $ 23,996     19,413     33,450  
Accruing troubled debt restructurings $ 53,311     63,590     69,397  
Non-accrual troubled debt restructurings $ 23,879     27,057     34,237  
__________
1 As of March 31, 2016, non-performing assets have not been reduced by U.S. government guarantees of $2.2 million.

Non-performing assets at March 31, 2016 were $80.2 million, an increase of $144 thousand, or 18 basis points, during the current quarter.  Non-performing assets at March 31, 2016 decreased $10.5 million, or 12 percent, from a year ago.  Early stage delinquencies (accruing loans 30-89 days past due) of $24.0 million at March 31, 2016 increased $4.6 million from the prior quarter and decreased $9.5 million from the prior year first quarter.

The allowance for loan and lease losses (“allowance”) was $130 million at March 31, 2016, consistent with prior periods.  The allowance as a percent of total loans outstanding at March 31, 2016 was 2.50 percent, a slight decrease from 2.55 percent at December 31, 2015.  The allowance as a percent of total loans in the current quarter decreased 27 basis points from 2.77 percent at March 31, 2015 which was driven primarily by loan growth, stabilizing credit quality, and no allowance carried over from the Cañon acquisition as a result of the acquired loans recorded at fair value.

Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands) Provisionfor LoanLosses   Net Charge-Offs  (Recoveries)   ALLLas a Percentof Loans   AccruingLoans 30-89Days Past Dueas a Percent ofLoans   Non-PerformingAssets toTotal SubsidiaryAssets
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 %
Second quarter 2014 239     332     3.11 %   0.44 %   1.30 %

Net charge-offs of loans for the current quarter were $194 thousand compared to net charge-offs of $1.5 million for the prior quarter and net charge-offs of $662 thousand from the same quarter last year.  The current quarter provision for loan losses of $568 thousand increased $157 thousand from the prior quarter and decreased $197 thousand from 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,  2016   Dec 31,  2015   Mar 31,  2015   Dec 31,  2015   Mar 31,  2015
Deposits                  
Non-interest bearing deposits $ 1,887,004     1,918,310     1,675,451     (31,306 )   211,553  
NOW and DDA accounts 1,448,454     1,516,026     1,313,036     (67,572 )   135,418  
Savings accounts 879,541     838,274     748,590     41,267     130,951  
Money market deposit accounts 1,411,970     1,382,028     1,345,422     29,942     66,548  
Certificate accounts 1,063,735     1,060,650     1,164,909     3,085     (101,174 )
Core deposits, total 6,690,704     6,715,288     6,247,408     (24,584 )   443,296  
Wholesale deposits 325,490     229,720     211,384     95,770     114,106  
Deposits, total 7,016,194     6,945,008     6,458,792     71,186     557,402  
Repurchase agreements 445,960     423,414     425,652     22,546     20,308  
Federal Home Loan Bank advances 313,969     394,131     298,148     (80,162 )   15,821  
Other borrowed funds 6,633     6,602     6,703     31     (70 )
Subordinated debentures 125,884     125,848     125,741     36     143  
Other liabilities 118,422     117,579     106,536     843     11,886  
Total liabilities $ 8,027,062     8,012,582     7,421,572     14,480     605,490  

Non-interest bearing deposits of $1.887 billion at March 31, 2016, decreased $31 million, or 2 percent, from the prior quarter which was driven by seasonal fluctuations.  Excluding the Cañon acquisition, non-interest bearing deposits increased $122 million, or 7 percent, from March 31, 2015.  Core interest bearing deposits of $4.804 billion at March 31, 2016, increased $6.7 million, or 14 basis points, from the prior quarter.  The increase in savings and money market accounts during the current quarter offset the decrease in NOW and DDA accounts.  Excluding the Cañon acquisition, core interest bearing deposits at March 31, 2016 increased $83.5 million, or 2 percent, from March 31, 2015.  Wholesale deposits (i.e., brokered deposits classified as NOW, DDA, money market deposit and certificate accounts) of $325 million at March 31, 2016 increased $95.8 million over the prior quarter and increased $114 million over the prior year first quarter.  A portion of the increases were driven by a need to obtain wholesale deposits necessary for the interest rate swap.

Securities sold under agreements to repurchase (“repurchase agreements”) of $446 million at March 31, 2016 increased $22.5 million, or 5 percent, from the prior quarter and increased $20.3 million, or 5 percent, from the prior year first quarter.  Federal Home Loan Bank (“FHLB”) advances of $314 million at March 31, 2016 decreased $80.2 million, or 20 percent, during the current quarter due to stable deposit balances and reduced need for additional borrowings.

Stockholders’ Equity Summary

              $ Change from
(Dollars in thousands, except per share data) Mar 31,   Dec 31,   Mar 31,   Dec 31,   Mar 31,
2016 2015 2015 2015 2015
Common equity $ 1,088,359     1,074,661     1,035,497     13,698     52,862  
Accumulated other comprehensive income 5,321     1,989     18,027     3,332     (12,706
Total stockholders’ equity 1,093,680     1,076,650     1,053,524     17,030     40,156  
Goodwill and core deposit intangible, net (154,396 )   (155,193 )   (143,099 )   797     (11,297
Tangible stockholders’ equity $ 939,284     921,457     910,425     17,827     28,859  
                         
Stockholders’ equity to total assets 11.99 %   11.85 %   12.43 %        
Tangible stockholders’ equity to total tangible assets 10.48 %   10.31 %   10.93 %        
Book value per common share $ 14.36     14.15     13.95     0.21     0.41  
Tangible book value per common share $ 12.33     12.11     12.05     0.22     0.28  

Tangible stockholders’ equity of $939 million at March 31, 2016 increased $17.8 million, or 2 percent, from the prior quarter primarily from earnings retention and an increase in accumulated other comprehensive income.  Tangible stockholders’ equity increased $28.9 million, or 3 percent, from a year ago, the result of earnings retention and $15.2 million of Company stock issued in connection with the Cañon acquisition.  These two items offset the decrease in accumulated other comprehensive income and increases in goodwill and other intangibles from the acquisition.  At March 31, 2016, the tangible book value per common share was $12.33 an increase of $0.22 per share from $12.11 the prior quarter principally due to earnings retention.  Tangible book value per common share for March 31, 2016, increased $0.28 per share from the prior year first quarter.

Cash DividendOn March 30, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per share, a $0.01 per share, or 5 percent, increase over the prior quarter dividend.  The Company has increased its quarterly dividend 40 times.  The dividend was payable April 21, 2016 to shareholders of record April 12, 2016.  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, 2016Compared to December 31, 2015 and March 31, 2015

Income Summary

  Three Months ended   $ Change from
(Dollars in thousands) Mar 31,  2016   Dec 31,  2015   Mar 31,  2015   Dec 31,  2015   Mar 31,  2015
Net interest income                  
Interest income $ 84,381     83,211     77,486     1,170     6,895  
Interest expense 7,675     7,215     7,382     460     293  
Total net interest income 76,706     75,996     70,104     710     6,602  
Non-interest income                  
Service charges and other fees 14,331     15,044     12,999     (713 )   1,332  
Miscellaneous loan fees and charges 1,021     922     1,157     99     (136 )
Gain on sale of loans 5,992     6,033     5,430     (41 )   562  
Gain on sale of investments 108     143     5     (35 )   103  
Other income 2,800     2,325     3,102     475     (302 )
Total non-interest income 24,252     24,467     22,693     (215 )   1,559  
  $ 100,958     100,463     92,797     495     8,161  
Net interest margin (tax-equivalent) 4.01 %   4.02 %   4.03 %        

Net Interest IncomeIn the current quarter, interest income of $84.4 million increased $1.2 million, or 1 percent from the prior quarter and increased $6.9 million, or 9 percent, over the prior year first quarter.  The increases in interest income over the prior periods were driven primarily by increases in interest income on commercial loans which increased $1.4 million, or 3 percent, over the prior quarter and increased $5.5 million, or 14 percent, over the prior year first quarter and was the result of an increased volume of commercial loans.  Interest income of $23.9 million from investment securities increased $152 thousand, or 1 percent, over the prior quarter and increased $924 thousand, or 4 percent, over the prior year first quarter.

The current quarter interest expense of $7.7 million increased $460 thousand, or 6 percent, from the prior quarter and increased $293 thousand from the prior year first quarter.  The increases in interest expense were 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.  The total cost of funding (including non-interest bearing deposits) for the current quarter was 39 basis points compared to 37 basis points for the prior quarter and 42 basis points in 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 4.01 percent compared to 4.02 percent in the prior quarter.  During the current quarter, the earning asset yield increased by 1 basis point and was the result of a 1 basis point increase in loan yields.  The cost of funds increased 2 basis points during the current quarter due to increased wholesale deposits and the higher interest expense from the previously mentioned interest rate swap.  The Company’s current quarter net interest margin decreased 2 basis points from the prior year first quarter net interest margin of 4.03 percent.  The decrease in the net interest margin from the prior year first quarter was the result of a 4 basis points reduction in the yield on earning assets that outpaced the 3 basis points reduction in cost of funding.  The yield on earning assets benefited from the shift in earning assets from the lower yielding investment securities to the higher yielding loans; nevertheless it was outpaced by the overall decreased yield on the loan portfolio.  “The Company was pleased to maintain a net interest margin above 4 percent for the quarter given the volatile interest rate environment.  The increase in overall loan yields and maintaining the low cost of retail deposits supported the quarterly performance of the net interest margin,” said Ron Copher, Chief Financial Officer.

Non-interest IncomeNon-interest income for the current quarter totaled $24.3 million, a decrease of $215 thousand, or 1 percent, from the prior quarter and an increase of $1.6 million, or 7 percent, over the same quarter last year.  Service fee income of $14.3 million, increased $1.3 million, or 10 percent, from the prior year first quarter driven by the increased number of deposit accounts.  Gain on sale of residential loans for the current quarter increased $562 thousand, or 10 percent, from the prior year first quarter.  In the prior year first quarter, the Company experienced a strong quarter for sales of residential loans as a result of the refinance activity and the Company’s resource commitment to this line of business has benefited the Company with an even stronger current year first quarter.  Other non-interest income of $2.8 million for the current quarter increased $475 thousand, or 20 percent, over the prior quarter primarily due to annual vendor incentives received and a gain on the sale of a bank building.  Other non-interest income for the current quarter decreased $302 thousand from the prior year first quarter due to insurance proceeds received in the prior year first quarter from a bank owned life insurance policy.  Included in other income was operating revenue of $11 thousand from OREO and a gain of $203 thousand from the sale of OREO, a combined total of $214 thousand for the current quarter compared to $239 thousand for the prior quarter and $417 thousand for the prior year first quarter.

Non-interest Expense Summary

  Three Months ended   $ Change from
(Dollars in thousands) Mar 31,  2016   Dec 31,  2015   Mar 31,  2015   Dec 31,  2015   Mar 31,  2015
Compensation and employee benefits $ 36,941     35,902     32,244     1,039     4,697  
Occupancy and equipment 6,676     6,579     6,060     97     616  
Advertising and promotions 2,125     2,035     1,927     90     198  
Data processing 3,373     3,244     2,551     129     822  
Other real estate owned 390     511     758     (121 )   (368 )
Regulatory assessments and insurance 1,508     1,494     1,305     14     203  
Core deposit intangibles amortization 797     758     731     39     66  
Other expenses 10,546     11,680     9,921     (1,134 )   625  
Total non-interest expense $ 62,356     62,203     55,497     153     6,859  

Compensation and employee benefits for the current quarter increased by $1.0 million, or 3 percent, from the prior quarter as a result of an increased number of employees from the Cañon acquisition and annual salary increases.  Compensation and employee benefits for the current quarter increased by $4.7 million, or 15 percent, from the prior year first quarter due to the increased number of employees from the Community Bank, Inc. (“CB”) acquisition in February of 2015 and the Cañon acquisition, annual salary increases, and an increase in the number of employees.  Current quarter occupancy and equipment expense increased $616 thousand, or 10 percent, from the prior year first quarter as a result of added costs associated with the acquisitions.  The current quarter data processing expense increased $822 thousand, or 32 percent, from the prior year first quarter primarily from expenses associated with CCP and expenses from the Cañon acquisition.  The current quarter OREO expense of $390 thousand was a decrease of $368 thousand from the prior year first quarter and included $136 thousand of operating expense, $55 thousand of fair value write-downs, and $199 thousand of loss from the sales of OREO.  Current quarter other expenses of $10.6 million decreased by $1.1 million, or 10 percent, from the prior quarter.  The prior quarter included professional expenses associated with the Cañon acquisition and expenses connected with equity investments in New Markets Tax Credit (“NMTC”) projects.  Federal and state income tax expense of $9.4 million in the current quarter increased $1.0 million from the prior quarter and was primarily the result of the NMTC credits recognized in the prior quarter.  Current quarter other expenses increased $625 thousand, or 6 percent, over the prior year first quarter with increases related to CCP and increased expenses from recent acquisitions, albeit several areas experienced decreases including outside services, which decreased as a result of acquisition-related expenses in the prior year first quarter.

Efficiency RatioAlthough there were increased expenses in the current quarter related to CCP, the efficiency ratio for the current quarter of 56.53 percent remained stable compared to 56.52 percent in the prior quarter with minimal changes in the income and expense items related to the efficiency ratio.  The current quarter efficiency ratio of 56.53 percent compares to 54.80 percent in the prior year first quarter.  The 1.73 percent increase in the efficiency ratio resulted primarily from increased compensation expense from recent acquisitions and increased salaries along with increased expenses related to CCP, which outpaced the increases in net interest income and non-interest income for the same period.

Forward-Looking StatementsThis news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements include, but are not limited to, statements about management’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or words of similar meaning.  These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control.  In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.  The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations in the forward-looking statements, including those set forth in this news release:

  • the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio;
  • changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability;
  • 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 CEO, the senior management team and the Presidents of 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 InformationA conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, April 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 77408162.  To participate on the webcast, log on to: http://edge.media-server.com/m/p/8dya659f.  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 77408162 until May 5, 2016.

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,  2016   December 31,  2015   March 31,  2015
Assets          
Cash on hand and in banks $ 104,222     117,137     109,746  
Federal funds sold 1,400     6,080      
Interest bearing cash deposits 45,239     70,036     73,720  
Cash and cash equivalents 150,861     193,253     183,466  
Investment securities, available-for-sale 2,604,625     2,610,760     2,544,093  
Investment securities, held-to-maturity 691,663     702,072     570,285  
Total investment securities 3,296,288     3,312,832     3,114,378  
Loans held for sale 40,484     56,514     54,132  
Loans receivable 5,197,193     5,078,681     4,687,669  
Allowance for loan and lease losses (130,071 )   (129,697 )   (129,856 )
Loans receivable, net 5,067,122     4,948,984     4,557,813  
Premises and equipment, net 192,951     194,030     187,067  
Other real estate owned 22,085     26,815     28,124  
Accrued interest receivable 47,363     44,524     43,260  
Deferred tax asset 55,773     58,475     41,220  
Core deposit intangible, net 13,758     14,555     12,256  
Goodwill 140,638     140,638     130,843  
Non-marketable equity securities 24,199     27,495     54,277  
Other assets 69,220     71,117     68,260  
Total assets $ 9,120,742     9,089,232     8,475,096  
Liabilities          
Non-interest bearing deposits $ 1,887,004     1,918,310     1,675,451  
Interest bearing deposits 5,129,190     5,026,698     4,783,341  
Federal funds purchased          
Securities sold under agreements to repurchase 445,960     423,414     425,652  
FHLB advances 313,969     394,131     298,148  
Other borrowed funds 6,633     6,602     6,703  
Subordinated debentures 125,884     125,848     125,741  
Accrued interest payable 3,608     3,517     3,893  
Other liabilities 114,814     114,062     102,643  
Total liabilities 8,027,062     8,012,582     7,421,572  
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     761     755  
Paid-in capital 736,664     736,368     719,506  
Retained earnings - substantially restricted 350,933     337,532     315,236  
Accumulated other comprehensive income 5,321     1,989     18,027  
Total stockholders’ equity 1,093,680     1,076,650     1,053,524  
Total liabilities and stockholders’ equity $ 9,120,742     9,089,232     8,475,096  

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 
  Three Months ended
(Dollars in thousands, except per share data) March 31,  2016   December 31,  2015   March 31,  2015
Interest Income          
Investment securities $ 23,883     23,731     22,959  
Residential real estate loans 8,285     8,572     7,761  
Commercial loans 44,503     43,109     39,022  
Consumer and other loans 7,710     7,799     7,744  
Total interest income 84,381     83,211     77,486  
Interest Expense          
Deposits 4,795     3,932     4,147  
Securities sold under agreements to repurchase 318     287     241  
Federal Home Loan Bank advances 1,652     2,156     2,195  
Federal funds purchased and other borrowed funds 18     18     27  
Subordinated debentures 892     822     772  
Total interest expense 7,675     7,215     7,382  
Net Interest Income 76,706     75,996     70,104  
Provision for loan losses 568     411     765  
Net interest income after provision for loan losses 76,138     75,585     69,339  
Non-Interest Income          
Service charges and other fees 14,331     15,044     12,999  
Miscellaneous loan fees and charges 1,021     922     1,157  
Gain on sale of loans 5,992     6,033     5,430  
Gain on sale of investments 108     143     5  
Other income 2,800     2,325     3,102  
Total non-interest income 24,252     24,467     22,693  
Non-Interest Expense          
Compensation and employee benefits 36,941     35,902     32,244  
Occupancy and equipment 6,676     6,579     6,060  
Advertising and promotions 2,125     2,035     1,927  
Data processing 3,373     3,244     2,551  
Other real estate owned 390     511     758  
Regulatory assessments and insurance 1,508     1,494     1,305  
Core deposit intangibles amortization 797     758     731  
Other expenses 10,546     11,680     9,921  
Total non-interest expense 62,356     62,203     55,497  
Income Before Income Taxes 38,034     37,849     36,535  
Federal and state income tax expense 9,352     8,341     8,865  
Net Income $ 28,682     29,508     27,670  

Glacier Bancorp, Inc.
Average Balance Sheet
 
  Three Months ended
  March 31, 2016   March 31, 2015
(Dollars in thousands) AverageBalance   Interest &Dividends   AverageYield/Rate   AverageBalance   Interest &Dividends   AverageYield/Rate
Assets                      
Residential real estate loans $ 726,270     $ 8,285     4.56 %   $ 651,700     $ 7,761     4.76 %
Commercial loans 1 3,749,929     45,335     4.86 %   3,282,867     39,605     4.89 %
Consumer and other loans 653,839     7,710     4.74 %   609,853     7,744     5.15 %
Total loans 2 5,130,038     61,330     4.81 %   4,544,420     55,110     4.92 %
Tax-exempt investment securities 3 1,352,683     19,383     5.73 %   1,302,174     18,493     5.68 %
Taxable investment securities 4 1,999,000     11,461     2.29 %   1,904,835     10,754     2.26 %
Total earning assets 8,481,721     92,174     4.37 %   7,751,429     84,357     4.41 %
Goodwill and intangibles 154,790             140,726          
Non-earning assets 390,891             379,581          
Total assets $ 9,027,402             $ 8,271,736          
Liabilities                      
Non-interest bearing deposits $ 1,863,389     $     %   $ 1,618,132     $     %
NOW and DDA accounts 1,465,181     293     0.08 %   1,311,330     268     0.08 %
Savings accounts 863,764     104     0.05 %   713,897     89     0.05 %
Money market deposit accounts 1,406,718     553     0.16 %   1,304,006     517     0.16 %
Certificate accounts 1,071,055     1,564     0.59 %   1,165,483     1,843     0.64 %
Wholesale deposits 5 335,126     2,281     2.74 %   220,382     1,430     2.63 %
FHLB advances 308,040     1,652     2.12 %   299,975     2,195     2.93 %
Repurchase agreements and  other borrowed funds 521,565     1,228     0.95 %   503,816     1,040     0.84 %
Total funding liabilities 7,834,838     7,675     0.39 %   7,137,021     7,382     0.42 %
Other liabilities 96,701             88,143          
Total liabilities 7,931,539             7,225,164          
Stockholders’ Equity                      
Common stock 761             752          
Paid-in capital 736,398             712,127          
Retained earnings 351,536             314,004          
Accumulated other comprehensive income 7,168             19,689          
Total stockholders’ equity 1,095,863             1,046,572          
Total liabilities and stockholders’ equity $ 9,027,402             $ 8,271,736          
Net interest income (tax-equivalent)     $ 84,499             $ 76,975      
Net interest spread (tax-equivalent)         3.98 %           3.99 %
Net interest margin (tax-equivalent)         4.01 %           4.03 %
__________
1  Includes tax effect of $832 thousand and $583 thousand on tax-exempt municipal loan and lease income for the three months ended March 31, 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 $5.9 million on tax-exempt investment securities income for the three months ended March 31, 2016 and 2015, respectively.
4  Includes tax effect of $352 thousand and $362 thousand on federal income tax credits for the three months ended March 31, 2016 and 2015, 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,  2016   Dec 31,  2015   Mar 31,  2015   Dec 31,  2015   Mar 31,  2015
Custom and owner occupied construction $ 68,893     $ 75,094     $ 51,693     (8 )%   33 %
Pre-sold and spec construction 59,220     50,288     44,865     18 %   32 %
Total residential construction 128,113     125,382     96,558     2 %   33 %
Land development 59,539     62,356     81,488     (5 )%   (27 )%
Consumer land or lots 93,922     97,270     97,519     (3 )%   (4 )%
Unimproved land 73,791     73,844     80,206     %   (8 )%
Developed lots for operative builders 12,973     12,336     14,210     5 %   (9 )%
Commercial lots 23,558     22,035     21,059     7 %   12 %
Other construction 166,378     156,784     148,535     6 %   12 %
Total land, lot, and other construction 430,161     424,625     443,017     1 %   (3 )%
Owner occupied 944,411     938,625     877,293     1 %   8 %
Non-owner occupied 806,856     774,192     704,990     4 %   14 %
Total commercial real estate 1,751,267     1,712,817     1,582,283     2 %   11 %
Commercial and industrial 664,855     649,553     585,501     2 %   14 %
Agriculture 372,616     367,339     340,364     1 %   9 %
1st lien 841,848     856,193     796,947     (2 )%   6 %
Junior lien 63,162     65,383     67,217     (3 )%   (6 )%
Total 1-4 family 905,010     921,576     864,164     (2 )%   5 %
Multifamily residential 197,267     201,542     177,187     (2 )%   11 %
Home equity lines of credit 379,866     372,039     347,693     2 %   9 %
Other consumer 150,047     150,469     141,347     %   6 %
Total consumer 529,913     522,508     489,040     1 %   8 %
Other 258,475     209,853     163,687     23 %   58 %
Total loans receivable, including  loans held for sale 5,237,677     5,135,195     4,741,801     2 %   10 %
Less loans held for sale 1 (40,484 )   (56,514 )   (54,132 )   (28 )%   (25 )%
Total loans receivable $ 5,197,193     $ 5,078,681     $ 4,687,669     2 %   11 %
_______
1 Loans held for sale are primarily 1st lien 1-4 family loans.

Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification
 
    Non-performing Assets, by Loan Type   Non-AccrualLoans   AccruingLoans 90 Days or More Past  Due   OtherReal EstateOwned
(Dollars in thousands) Mar 31,  2016   Dec 31,  2015   Mar 31,  2015   Mar 31,  2016   Mar 31,  2016   Mar 31,  2016
Custom and owner occupied construction $ 995     1,016     1,101     995          
Pre-sold and spec construction         218              
Total residential construction 995     1,016     1,319     995          
Land development 18,190     17,582     21,220     5,948     249     11,993  
Consumer land or lots 1,751     2,250     2,531     923         828  
Unimproved land 11,651     12,328     13,448     8,252         3,399  
Developed lots for operative builders 457     488     929     264         193  
Commercial lots 1,333     1,521     2,496     217         1,116  
Other construction     4,236     4,989              
Total land, lot and other construction 33,382     38,405     45,613     15,604     249     17,529  
Owner occupied 12,130     10,952     13,121     10,471         1,659  
Non-owner occupied 4,354     3,446     3,771     2,231     1,311     812  
Total commercial real estate 16,484     14,398     16,892     12,702     1,311     2,471  
Commercial and industrial 6,046     3,993     6,367     5,984     62      
Agriculture 3,220     3,281     2,845     3,005     215      
1st lien 11,041     10,691     9,502     8,713     832     1,496  
Junior lien 1,111     668     680     745         366  
Total 1-4 family 12,152     11,359     10,182     9,458     832     1,862  
Multifamily residential 432     113         432          
Home equity lines of credit 5,432     5,486     5,507     5,192     107     133  
Other consumer 280     228     243     151     39     90  
Total consumer 5,712     5,714     5,750     5,343     146     223  
Other 1,800     1,800     1,800         1,800      
Total $ 80,223     80,079     90,768     53,523     4,615     22,085  

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,  2016   Dec 31,  2015   Mar 31,  2015   Dec 31,  2015   Mar 31,  2015
Custom and owner occupied construction $     $ 462     $     (100 )%   n/m
Pre-sold and spec construction 304     181         68 %   n/m
Total residential construction 304     643         (53 )%   n/m
Land development 198     447         (56 )%   n/m
Consumer land or lots 796     166     365     380 %   118 %
Unimproved land 1,284     774     278     66 %   362 %
Developed lots for operative builders         19     n/m   (100 )%
Commercial lots         585     n/m   (100 )%
Other construction     337         (100 )%   n/m
Total land, lot and other construction 2,278     1,724     1,247     32 %   83 %
Owner occupied 4,552     2,760     4,841     65 %   (6 )%
Non-owner occupied 1,466     923     4,327     59 %   (66 )%
Total commercial real estate 6,018     3,683     9,168     63 %   (34 )%
Commercial and industrial 4,907     1,968     6,600     149 %   (26 )%
Agriculture 659     1,014     3,715     (35 )%   (82 )%
1st lien 5,896     6,272     7,307     (6 )%   (19 )%
Junior lien 759     1,077     384     (30 )%   98 %
Total 1-4 family 6,655     7,349     7,691     (9 )%   (13 )%
Multifamily Residential     662     676     (100 )%   (100 )%
Home equity lines of credit 2,528     1,046     3,350     142 %   (25 )%
Other consumer 607     1,227     1,003     (51 )%   (39 )%
Total consumer 3,135     2,273     4,353     38 %   (28 )%
Other 40     97         (59 )%   n/m
Total $ 23,996     $ 19,413     $ 33,450     24 %   (28 )%
_______
n/m - not measurable
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
 
  Net Charge-Offs (Recoveries), Year-to-DatePeriod Ending, By Loan Type   Charge-Offs   Recoveries
(Dollars in thousands) Mar 31,  2016   Dec 31,  2015   Mar 31,  2015   Mar 31,  2016   Mar 31,  2016
Pre-sold and spec construction $ (28 )   (53 )   (9 )       28  
Land development (100 )   (288 )   (23 )       100  
Consumer land or lots (240 )   66     (15 )   25     265  
Unimproved land (34 )   (325 )   (50 )       34  
Developed lots for operative builders (12 )   (85 )   (96 )       12  
Commercial lots 23     (26 )   (1 )   24     1  
Other construction     (1 )   (1 )        
Total land, lot and other construction (363 )   (659 )   (186 )   49     412  
Owner occupied (27 )   247     316         27  
Non-owner occupied (1 )   93     82         1  
Total commercial real estate (28 )   340     398         28  
Commercial and industrial 69     1,389     426     324     255  
Agriculture (1 )   50     (4 )       1  
1st lien 47     834     (30 )   75     28  
Junior lien (15 )   (125 )   (54 )       15  
Total 1-4 family 32     709     (84 )   75     43  
Multifamily residential 229     (318 )   (20 )   229      
Home equity lines of credit 179     740     121     229     50  
Other consumer 95     143     20     155     60  
Total consumer 274     883     141     384     110  
Other 10     (1 )       102     92  
Total $ 194     2,340     662     1,163     969  

Visit our website at www.glacierbancorp.com

CONTACT:  Michael J. Blodnick
(406) 751-4701
Ron J. Copher
(406) 751-7706
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