GLACIER BANCORP, INC.GBCI
GLACIER BANCORP, INC. Income Taxes Disclosure
Federal and State Income Taxes
The following table is a summary of consolidated income tax expense:
| Years ended | |||||||||||||||||
| (Dollars in thousands) | December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||||||||||
| Current | |||||||||||||||||
| Federal | $ | 41,456 | 23,695 | 27,626 | |||||||||||||
| State | 13,830 | 9,857 | 16,548 | ||||||||||||||
| Total current income tax expense | 55,286 | 33,552 | 44,174 | ||||||||||||||
Deferred 1 | |||||||||||||||||
| Federal | (3,493) | 2,010 | 404 | ||||||||||||||
| State | (573) | 598 | 103 | ||||||||||||||
| Total deferred income tax (benefit) expense | (4,066) | 2,608 | 507 | ||||||||||||||
| Total income tax expense | $ | 51,220 | 36,160 | 44,681 | |||||||||||||
______________________________
1 Includes tax benefit of operating loss carryforwards of $359,000, $307,000, and $313,000 for the years ended December 31, 2025, 2024, and 2023, respectively.
Combined federal and state income tax expense differs from that computed at the federal statutory corporate income tax rate as follows:
| Years ended | |||||||||||
| (Dollars in thousands) | December 31, 2025 | ||||||||||
| Federal statutory rate | $ | 60,952 | 21.0 | % | |||||||
State taxes, net of federal income tax benefit 1 | 10,473 | 3.6 | % | ||||||||
| Tax credits | |||||||||||
| Low-income tax credits (net) | (6,646) | (2.3) | % | ||||||||
| New market tax credits | (5,797) | (2.0 | %) | ||||||||
| Other tax credits | (602) | (0.2 | %) | ||||||||
| Non-deductible and non-taxable items: | |||||||||||
| Tax-exempt interest income | (11,442) | (3.9 | %) | ||||||||
| Other, net | 4,282 | 1.4 | % | ||||||||
| Effective income tax | $ | 51,220 | 17.6 | % | |||||||
______________________________
1 State taxes in Montana made up the majority (greater than 50 percent) of the tax effect in this category.
Prior to the adoption of the guidance in ASU 2023-09, the combined federal and state income tax expense differed from that computed at the federal statutory corporate income tax rate as follows:
| Years ended | |||||||||||
| December 31, 2024 | December 31, 2023 | ||||||||||
| Federal statutory rate | 21.0 | % | 21.0 | % | |||||||
| State taxes, net of federal income tax benefit | 3.6 | % | 4.9 | % | |||||||
| Tax-exempt interest income | (4.5 | %) | (4.3 | %) | |||||||
| Tax credits | (5.5 | %) | (5.6 | %) | |||||||
| Other, net | 1.4 | % | 0.7 | % | |||||||
| Effective income tax rate | 16.0 | % | 16.7 | % | |||||||
During the periods presented, the Company paid income taxes (net of refunds) to the following jurisdictions:
| Years ended | |||||
| (Dollars in thousands) | December 31, 2025 | ||||
| Federal | $ | 18,036 | |||
| Montana | 7,748 | ||||
| Idaho | 2,060 | ||||
| Utah | 1,960 | ||||
| All other states | 2,356 | ||||
| Total taxes paid | $ | 32,160 | |||
The Company paid $15,604,000 and $27,932,000 for income taxes (net of refunds) for the years ended December 31, 2024, and 2023, respectively.
The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and deferred tax liabilities are as follows:
| (Dollars in thousands) | December 31, 2025 | December 31, 2024 | |||||||||
| Deferred tax assets | |||||||||||
| Allowance for credit losses | $ | 70,730 | 56,430 | ||||||||
| Available-for-sale debt securities | 56,070 | 102,448 | |||||||||
| Acquisition fair market value adjustments | 21,927 | 5,471 | |||||||||
| Employee benefits | 15,470 | 12,234 | |||||||||
| Operating lease liabilities | 13,107 | 9,943 | |||||||||
| Deferred compensation | 10,668 | 9,144 | |||||||||
| Net operating loss carryforwards | 493 | 567 | |||||||||
| Derivatives | 165 | 2,356 | |||||||||
| Transferred debt securities | — | 395 | |||||||||
| Other | 3,260 | 3,951 | |||||||||
| Total gross deferred tax assets | 191,890 | 202,939 | |||||||||
| Deferred tax liabilities | |||||||||||
| Depreciation of premises and equipment | (26,752) | (21,321) | |||||||||
| Intangibles | (21,145) | (7,854) | |||||||||
| Operating lease ROU assets | (15,625) | (9,042) | |||||||||
| Deferred loan costs | (10,520) | (10,043) | |||||||||
| Prepaid assets | (4,439) | (3,146) | |||||||||
| Mortgage servicing rights | (2,920) | (2,980) | |||||||||
| Transferred debt securities | (997) | — | |||||||||
| Derivatives | (156) | (2,356) | |||||||||
| Other | (7,999) | (7,242) | |||||||||
| Total gross deferred tax liabilities | (90,553) | (63,984) | |||||||||
| Net deferred tax asset | $ | 101,337 | 138,955 | ||||||||
The Company has federal net operating loss carryforwards of $1,354,000 expiring between 2025 and 2036. The Company has Colorado net operating loss carryforwards of $5,994,000 expiring between 2026 and 2037. The net operating loss carryforwards originated from acquisitions.
The Company and the Bank file consolidated income tax returns for the federal jurisdiction and several states that require consolidated income tax returns. Wyoming, Washington, Nevada and Texas do not impose a corporate income tax. All required income tax returns have been timely filed. The following schedule summarizes the years that remain subject to examination as of December 31, 2025:
| Years ended December 31, | |||||
| Federal | 2011, 2012, 2013, 2016, 2022, 2023, and 2024 | ||||
| Colorado | 2009, 2010, 2011, 2012, 2021, 2022, 2023, and 2024 | ||||
| Arizona, California, Kentucky, Michigan, Minnesota, New Jersey, Texas, & Wisconsin | 2021, 2022, 2023, and 2024 | ||||
| Alabama, Alaska, Arkansas, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Mississippi, Missouri, Montana, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, & Virginia | 2022, 2023, and 2024 | ||||
The Company had no unrecognized income tax benefits as of December 31, 2025 and 2024. The Company recognizes interest related to unrecognized income tax benefits in interest expense and penalties are recognized in other expense. Interest expense and penalties recognized with respect to income tax liabilities for the years ended December 31, 2025, 2024, and 2023 was not significant. The Company had no accrued liabilities for the payment of interest or penalties at December 31, 2025 and 2024.
The Company has assessed the need for a valuation allowance and determined that a valuation allowance was not necessary at December 31, 2025 and 2024. The Company believes that it is more-likely-than-not that the Company’s deferred tax assets will be realizable by offsetting future taxable income from reversing taxable temporary differences and anticipated future taxable income (exclusive of reversing temporary differences). In its assessment, the Company considered its strong earnings history, no history of income tax credit carryforwards expiring unused, and no expected future net operating losses (for tax purposes).
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 25, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.