About Glacier Bancorp

Glacier Bancorp, Inc. operates as the bank holding company for Glacier Bank that provides various banking services to individuals and businesses. The company has presence in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona and Nevada. The company offers a wide range of banking products and services, including retail banking; business banking; real estate, commercial, agriculture and consumer loans; and mortgage origination and loan servicing. The company serves individuals, small to medium-sized businesses, community organizations and public entities. As of December 31, 2023, the bank consisted of seventeen bank divisions and a corporate division. The bank divisions operate under separate names, management teams and advisory directors and include the following: Glacier Bank (Kalispell, Montana) with operations in Montana; First Security Bank of Missoula (Missoula, Montana) with operations in Montana; Valley Bank of Helena (Helena, Montana) with operations in Montana; First Security Bank (Bozeman, Montana) with operations in Montana; Western Security Bank (Billings, Montana) with operations in Montana; First Bank of Montana (Lewistown, Montana) with operations in Montana; Mountain West Bank (Coeur d'Alene, Idaho) with operations in Idaho and Washington; Citizens Community Bank (Pocatello, Idaho) with operations in Idaho; First Bank (Powell, Wyoming) with operations in Wyoming; First State Bank (Wheatland, Wyoming) with operations in Wyoming; North Cascades Bank (Chelan, Washington) with operations in Washington; First Community Bank Utah (Layton, Utah) with operations in Utah; Altabank (American Fork, UT) with operations in Utah and Idaho; Bank of the San Juans (Durango, Colorado) with operations in Colorado; Collegiate Peaks Bank (Buena Vista, Colorado) with operations in Colorado; The Foothills Bank (Yuma, Arizona) with operations in Arizona; and Heritage Bank of Nevada (Reno, NV) with operations in Nevada. Effective January 31, 2024, the company completed its acquisition of Community Financial Group, Inc. and its subsidiary, Wheatland Bank. The Wheatland Bank operations will be combined with the North Cascades Bank division, and the combined operations will begin to operate under the name Wheatland Bank in the second quarter of 2024. The corporate division includes the company's investment portfolio and wholesale borrowings, and other centralized functions. Strategy The company's strategy is to profitably grow its business through internal growth and selective acquisitions. Lending Activity The company focuses its lending activities primarily on the following types of loans: such as first-mortgage, conventional loans secured by residential properties, particularly single-family; commercial lending, including agriculture and public entities; and installment lending for consumer purposes (e.g., home equity, automobile, etc.). Residential Real Estate Lending The company's lending activities consist of the origination of both construction and permanent loans on residential real estate. The company actively solicits residential real estate loan applications from real estate brokers, contractors, existing customers, customer referrals, and online applications. The company's lending policies generally limit the maximum loan-to-value ratio on residential mortgage loans to 80 percent of the lesser of the appraised value or purchase price. Policies allow for higher loan-to-values with appropriate risk mitigation such as documented compensating factors, credit enhancement, and other factors. For loans held for sale, the company complies with each investor's loan-to-value guidelines. The company also provides interim construction financing for single-family dwellings. These loans are supported by a term take-out commitment that may be subject to certain contingencies. Consumer Land or Lot Loans The company originates land and lot acquisition loans to borrowers who intend to construct their primary residence on the respective land or lot. These loans are generally for a term of three to five years and are secured by the developed land or lot with the loan-to-value limited to the lesser of 75 percent of the appraised value or 75 percent of the cost. Unimproved Land and Land Development Loans Although the company has originated very few unimproved land and land development loans since the economic downturn in 2008, it may originate such loans on properties intended for residential and commercial use where real estate market conditions show significant strength. These loans are typically made for a term of 18 months to two years and are secured by the developed property with a loan-to-value not to exceed the lesser of 75 percent of cost or 65 percent of the appraised discounted estimated bulk sale value upon completion of the improvements. The projects under development are inspected on a regular basis and advances are made on a percentage-of-completion basis. The loans are made to borrowers with real estate development experience and appropriate financial strength. Generally, the company requires that a certain percentage of the development be pre-sold or that construction and term take-out commitments are in place prior to funding the loan. Loans made on unimproved land are generally made for a term of five to ten years with a loan-to-value not to exceed the lesser of 50 percent of appraised value or 50 percent of cost. Residential Builder Guidance Lines The company provides Builder Guidance Lines that are comprised of pre-sold and spec-home construction and lot acquisition loans. The spec-home construction and lot acquisition loans are limited to a specific number and maximum amount. Construction Loans During the construction loan term, all construction loan collateral properties are inspected at least monthly, or more frequently as needed, until completion. Commercial Real Estate Loans Loans are made to purchase, construct and finance commercial real estate properties. These loans are generally made to borrowers who will own and occupy the property, but may include loans to finance investment or income properties. Commercial real estate loans generally have a loan-to-value up to the lesser of 75 percent of the appraised value or 75 percent of the cost and require a minimum 1.2 times debt service coverage margin. Agricultural Lending Agricultural lending is conducted on a conservative basis and consists of operating credits, term real estate loans for the acquisition or refinance of agricultural real estate or equipment, and term livestock loans for the acquisition or refinance of livestock. Loan-to-value on equipment, livestock and agricultural real estate is generally limited to 75 percent. Home Equity Loans Home equity lines of credit are generally originated with maturity terms of 15 years. At origination, borrowers can choose a variable interest rate that changes quarterly, or after the first 3 or 5 years from the origination date. The draw period for home equity lines of credit usually exists from origination to maturity. During the draw period, the company has home equity lines of credit where the borrowers pay interest only and home equity lines of credit where borrowers pay principal and interest. Consumer Lending The majority of consumer loans are secured by real estate, automobiles, or other assets. The company intends to continue making such loans because of their short-term nature, generally between three months and five years. Moreover, interest rates on consumer loans are generally higher than on residential mortgage loans. States and Political Subdivisions Lending The company lends directly to state and local political subdivisions. The loans are typically secured by the full faith and credit of the municipality or a specific revenue stream such as water or sewer fees. In general, state and local political subdivision loans carry a low risk of default and offer other complementary business opportunities, such as deposits and cash management. Investment Portfolio As of December 31, 2023, the company's investment portfolio included U.S. government and federal agency; U.S. government sponsored enterprises; state and local governments; corporate bonds; residential mortgage-backed securities; and commercial mortgage-backed securities. Deposits The company has several deposit programs designed to attract both short-term and long-term deposits from the general public by providing a wide selection of accounts and rates. These programs include non-interest bearing deposit accounts and interest bearing deposit accounts such as NOW, DDA, savings, money market deposits, fixed rate certificates of deposit with maturities ranging from three months to five years, negotiated-rate jumbo certificates, and individual retirement accounts. These deposits are obtained primarily from individual and business residents in the company's geographic market areas. Wholesale deposits are obtained through various programs and include brokered deposits classified as NOW, DDA, money market deposits and certificate accounts. Supervision and Regulation The company is subject to extensive regulation under federal and state laws. This section provides a general overview of the federal and state regulatory framework applicable to it. In general, this regulatory framework is designed to protect depositors, the federal Deposit Insurance Fund (DIF), and the federal and state banking system as a whole, rather than specifically for the protection of shareholders. Note that this section is not intended to summarize all laws and regulations applicable to the company. The company is subject to regulation and supervision by the Federal Reserve and the Montana Department of Administration's Division of Banking and Financial Institutions (MT Division of Banking) and regulation generally by the state of Montana. The company is also subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, which are both administered by the SEC. The bank is subject to regulation and supervision by the FDIC, the MT Division of Banking, and, with respect to Bank branches outside of the state of Montana, the respective regulators in those states. In addition, the company is also subject to regulation and direct supervision by the Consumer Financial Protection Bureau (CFPB), which is empowered to exercise broad rulemaking, supervision, and enforcement authority for a wide range of consumer protection laws. The company is a bank holding company under the Bank Holding Company Act of 1956, as amended (BHCA), due to its ownership of and control over the bank. As a bank holding company, the company is subject to regulation, supervision, and examination by the Federal Reserve. Further, because the bank is a regional banking organization under Montana law, the company (as a bank holding company of the bank) is also subject to regulation, supervision and examination by the MT Division of Banking. In general, the BHCA limits the business of a bank holding company to owning or controlling banks and engaging in, or retaining or acquiring shares in a company engaged in, other activities closely related to the business of banking. In addition, the company must also file reports with and provide additional information to the Federal Reserve. Bank subsidiaries of a bank holding company are subject to restrictions imposed by the Federal Reserve Act on extensions of credit to the holding company or its subsidiaries, on investments in securities, and on the use of securities as collateral for loans to any borrower. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) further extends the definition of an affiliate and treats credit exposure arising from derivative transactions, securities lending, and borrowing transactions as covered transactions under the regulations. Under Federal Reserve policy and the Dodd-Frank Act, the company is required to act as a source of financial and managerial strength to the bank. Deposits in the bank are insured by the FDIC. The bank is subject to primary supervision, periodic examination, and regulation of the FDIC and the MT Division of Banking. The bank's deposits are insured under the Federal Deposit Insurance Act, up to the maximum applicable limits and are subject to deposit insurance assessments by the FDIC, which are designed to tie what banks pay for deposit insurance to the risks they pose. History Glacier Bancorp, Inc. was incorporated in 1990.