•	Net earnings for the quarter of $15.779 million.

•	Diluted earnings per share of $.26.

•	Loans increased $31 million for the quarter, or 3 percent annualized.

•	Deposit growth of $32 million for the quarter, or 4 percent annualized.

•	Tangible stockholders’ equity increased $134 million, up 34 percent from last year’s first quarter.

•	Net interest income increased $12 million, up 24 percent from last year’s first quarter.

•	Net interest margin (tax equivalent) of 4.92 percent, up 11 basis points from the prior quarter, and up 38 basis points from last year’s first quarter.

•	Non-interest income increased $2 million, up 11 percent from the prior quarter.

•	Efficiency ratio of 51 percent for the quarter, an improvement of 4 percentage points from last year’s first quarter.

KALISPELL, MONTANA - Glacier Bancorp, Inc. (Nasdaq GS: GBCI) reported net earnings of $15.779 million for the first quarter, a decrease of $1.620 million, or 9 percent, from the $17.399 million for the first quarter of 2008. Diluted earnings per share of $.26 for the quarter decreased 19 percent from the diluted earnings per share of $.32 for the same quarter of 2008, reflecting the increase of 7.434 million shares, or 14 percent, in average outstanding shares on a diluted basis over last year’s first quarter. Annualized return on average assets and return on average equity for the first quarter were 1.15 percent and 9.27 percent, which compares with prior year returns for the first quarter of 1.46 percent and 12.98 percent, respectively.

	March 31,			December 31,			March 31,			$ change from			$ change from
	2009			2008			2008			December 31,			March 31,
Assets ($ in thousands)	(unaudited)			(audited)			(unaudited)			2008			2008

Cash on hand and in banks	$	110,220		$	125,123		$	113,016		$	(14,903	)		(2,796	)
Investments, interest bearing deposits, FHLB stock, FRB stock, and Fed Funds		1,007,283			1,000,224			764,067			7,059			243,216
Loans:
Real estate		847,245			838,375			720,108			8,870			127,137
Commercial		2,607,655			2,575,828			2,312,359			31,827			295,296
Consumer and other		705,805			715,990			649,401			(10,185	)		56,404
Total loans		4,160,705			4,130,193			3,681,868			30,512			478,837
Allowance for loan and lease losses		(83,777	)		(76,739	)		(56,680	)		(7,038	)		(27,097	)
Total loans net of allowance for loan and lease losses		4,076,928			4,053,454			3,625,188			23,474			451,740
Other assets		386,369			375,169			332,601			11,200			53,768
Total Assets	$	5,580,800		$	5,553,970			4,834,872		$	26,830			745,928

At March 31, 2009, total loans were $4.161 billion, an increase of $31 million, or 74 basis points (3 percent annualized) over total loans of $4.130 billion at December 31, 2008. Commercial loans grew the most with an increase of $32 million, or 1 percent, followed by real estate loans, increasing by $9 million, or 1 percent, while consumer loans, which are primarily comprised of home equity loans, decreased $10 million, or 1 percent from the fourth quarter of 2008. Total loans increased $479 million, or 13 percent from March 31, 2008. Since prior year, commercial loans have increased $295 million, or 13 percent, real estate loans grew by $127 million, or 18 percent, and consumer loans increased $56 million, or 9 percent.

	March 31,		December 31,		March 31,		$ change from			$ change from
	2009		2008		2008		December 31,			March 31,
Liabilities ($ in thousands)	(unaudited)		(audited)		(unaudited)		2008			2008

Non-interest bearing deposits	$	743,552	$	747,439	$	770,456	$	(3,887	)		(26,904	)
Interest bearing deposits		2,551,180		2,515,036		2,388,483		36,144			162,697
Advances from Federal Home Loan Bank		225,695		338,456		472,761		(112,761	)		(247,066	)
Securities sold under agreements to repurchase and other borrowed funds		1,210,778		1,110,731		492,189		100,047			718,589
Other liabilities		47,461		44,331		49,476		3,130			(2,015	)
Subordinated debentures		120,149		121,037		118,559		(888	)		1,590
Total liabilities	$	4,898,815	$	4,877,030		4,291,924	$	21,785			606,891

As of March 31, 2009, non-interest bearing deposits decreased $27 million, or 3 percent, since March 31, 2008, and decreased $4 million, or 1 percent, since December 31, 2008. Interest bearing deposits increased $36 million, or 1 percent from December 31, 2008. Since March 31, 2008, interest bearing deposits increased $163 million, or 7 percent. Federal Home Loan Bank (“FHLB”) advances at March 31, 2009 decreased $247 million, or 52 percent, from March 31, 2008 and decreased $113 million, or 33 percent, from December 31, 2008. Repurchase agreements and other borrowed funds were $1.2 billion at March 31, 2009, an increase of $719 million, or 146 percent, from March 31, 2008, and an increase of $100 million, or 9 percent, from December 31, 2008. Included in this latter category are U.S. Treasury Tax and Loan funds of $3.5 million at March 31, 2009, a decrease of $238 million from March 31, 2008, and a decrease of $2.5 million from December 31, 2008. Also, included in this category are Federal Reserve Bank discount window borrowings of $1 billion at March 31, 2009, an increase of $948 million from March 31, 2008, and an increase of $91 million from December 31, 2008.

	March 31,			December 31,			March 31,			$ change from			$ change from
Stockholders' equity	2009			2008			2008			December 31,			March 31,
($ in thousands except per share data)	(unaudited)			(audited)			(unaudited)			2008			2008

Common equity	$	689,041		$	678,183		$	538,665		$	10,858			150,376
Accumulated other comprehensive (loss) income		(7,056	)		(1,243	)		4,283			(5,813	)		(11,339	)
Total stockholders' equity		681,985			676,940			542,948			5,045			139,037
Core deposit intangible, net, and goodwill		(158,498	)		(159,765	)		(153,485	)		1,267			(5,013	)
Tangible stockholders' equity	$	523,487		$	517,175		$	389,463		$	6,312			134,024

Stockholders' equity to total assets		12.22	%		12.19	%		11.23	%
Tangible stockholders' equity to total tangible assets		9.65	%		9.59	%		8.32	%
Book value per common share	$	11.09		$	11.04		$	10.07		$	0.05			1.02
Tangible book value per common share	$	8.51		$	8.43		$	7.22		$	0.08			1.29
Market price per share at end of period	$	15.71		$	19.02		$	19.17		$	(3.31	)		(3.46	)

Total stockholders’ equity and book value per share amounts have increased $139 million and $1.02 per share, respectively, from March 31, 2008, the result of earnings retention and exercised stock options, stock issued in connection with the Bank of the San Juans acquisition, and $94 million in net proceeds from the Company’s November equity offering of 6,325,000 shares of common stock at a price of $15.50 per share. Tangible stockholders equity has increased $134 million, or 34 percent since March 31, 2008, with tangible stockholders’ equity at 9.65 percent of total tangible assets at March 31, 2009, up from 8.32 percent at March 31, 2008. Accumulated other comprehensive income, representing net unrealized gains or losses (net of tax) on investment securities designated as available for sale, decreased $11 million from March 31, 2008.

Revenue summary
($ in thousands)	Three months ended
	March 31,			December 31,			March 31,
	2009			2008			2008
	(unaudited)			(unaudited)			(unaudited)
Net interest income
Interest income	$	75,532		$	76,707		$	76,016
Interest expense		15,154			18,599			27,387
Net interest income		60,378			58,108			48,629

Non-interest income
Service charges, loan fees, and other fees		10,179			11,522			10,961
Gain on sale of loans		6,150			3,195			3,880
Gain on investments		-			-			248
Other income		1,048			920			1,173
Total non-interest income		17,377			15,637			16,262
	$	77,755		$	73,745		$	64,891

Tax equivalent net interest margin		4.92	%		4.81	%		4.54	%

($ in thousands)	$ change from			$ change from			% change from			% change from
	December 31,			March 31,			December 31,			March 31,
	2008			2008			2008			2008
Net interest income
Interest income	$	(1,175	)	$	(484	)		-2	%		-1	%
Interest expense	$	(3,445	)	$	(12,233	)		-19	%		-45	%
Net interest income		2,270			11,749			4	%		24	%

Non-interest income
Service charges, loan fees, and other fees		(1,343	)		(782	)		-12	%		-7	%
Gain on sale of loans		2,955			2,270			92	%		59	%
Gain on investments		-			(248	)		n/m			-100	%
Other income		128			(125	)		14	%		-11	%
Total non-interest income		1,740			1,115			11	%		7	%
	$	4,010		$	12,864			5	%		20	%
n/m - not measurable

Net interest income for the quarter increased $12 million, or 24 percent, over the same period in 2008. Interest income for the current quarter increased $2 million, or 4 percent, with interest expense decreasing $3 million, or 19 percent, compared to the prior quarter. While total interest income has decreased by $484 thousand, or 1 percent, from the same period last year, total interest expense has decreased by $12 million, or 45 percent, from the same period last year. The decrease in total interest expense is primarily attributable to rate decreases in interest bearing deposits and lower cost borrowings. The net interest margin as a percentage of earning assets, on a tax equivalent basis, was 4.92 percent which is 11 basis points higher than the 4.81 percent achieved for the prior quarter and 38 basis points higher than the 4.54 percent result for the first quarter of 2008. “The continued improvement in the net interest margin reflects the banks managing their balance sheets by reducing funding costs while largely maintaining yields on earning assets,” said Ron Copher, Chief Financial Officer.

Non-interest income for the quarter increased $2 million, or 11 percent, from the prior quarter, and increased $1 million, or 7 percent, over the same period in 2008. Fee income decreased $1.3 million, or 12 percent, during the quarter, compared to the decrease of $782 thousand, or 7 percent, over the same period last year. Gain on sale of loans increased $3 million, or 92 percent, for the quarter and increased $2 million, or 59 percent, over the same period last year.

Non-interest expense summary	Three months ended
($ in thousands)	March 31,		December 31,		March 31,
	2009		2008		2008
	(unaudited)		(unaudited)		(unaudited)

Compensation and employee benefits	$	21,944	$	18,775	$	21,097
Occupancy and equipment expense		5,895		5,923		5,133
Advertising and promotion expense		1,724		1,675		1,539
Outsourced data processing		671		638		667
Core deposit intangibles amortization		774		741		779
Other expenses		8,618		8,340		6,398
Total non-interest expense	$	39,626	$	36,092	$	35,613

($ in thousands)	$ change from			$ change from			% change from			% change from
	December 31,			March 31,			December 31,			March 31,
	2008			2008			2008			2008

Compensation and employee benefits	$	3,169		$	847			17	%		4	%
Occupancy and equipment expense		(28	)		762			0	%		15	%
Advertising and promotion expense		49			185			3	%		12	%
Outsourced data processing		33			4			5	%		1	%
Core deposit intangibles amortization		33			(5	)		4	%		-1	%
Other expenses		278			2,220			3	%		35	%
Total non-interest expense	$	3,534		$	4,013			10	%		11	%

Non-interest expense increased by $3.5 million, or 10 percent from the prior quarter, including a $3.2 million, or 17 percent increase in compensation and employee benefits expense. The prior quarter compensation and employee benefits included significant reductions in commissions tied to production, as well as significant reductions in bonuses and employee benefits tied to Company performance. The current quarter increase in compensation and employee benefits also reflects increased staffing with the number of full-time equivalent employees increasing from 1,571 to 1,610 during the quarter, and increasing from 1,510 since the end of the 2008 first quarter.

Non-interest expense increased by $4.0 million, or 11 percent from the same quarter of 2008, including a $2.2 million, or 35 percent increase in other expenses. The increase in other expenses includes $931 thousand in FDIC insurance premiums, $395 thousand in outside legal, accounting, and audit firm expense, $263 thousand loss from sales of other real estate owned, $190 thousand expense associated with repossessed assets, and a non-recurring payment of $169 thousand to the pension plan of the former North Side State Bank prior to terminating the plan in March 2009. North Side State Bank was acquired in April 2007 and immediately merged into 1st Bank, the Company’s subsidiary in Evanston, Wyoming. Occupancy and equipment expense has increased $762 thousand, or 15 percent, since March 31, 2008, reflecting the cost of additional branch locations and facility upgrades. Advertising and promotion expense increased $185 thousand, or 12 percent, from the same quarter of 2008, such increase attributable to branch promotions and the banks continuing focus on attracting and retaining non-interest bearing and other low cost deposits.

	March 31,			December 31,			March 31,
Credit quality information	2009			2008			2008
($ in thousands)	(unaudited)			(audited)			(unaudited)

Allowance for loan and lease losses - beginning of period	$	76,739			54,413			54,413
Provision		15,715			28,480			2,500
Acquisition		-			2,625			-
Charge-offs		(8,994	)		(9,839	)		(408	)
Recoveries		317			1,060			175
Allowance for loan and lease losses - end of period	$	83,777			76,739			56,680

Real estate and other assets owned	$	18,985			11,539			2,098
Accruing Loans 90 days or more overdue		4,439			8,613			4,717
Non-accrual loans		92,288			64,301			21,747
Total non-performing assets	$	115,712			84,453			28,562

Allowance for loan and lease losses as a percentage of non-performing assets		72	%		91	%		198	%

Non-performing assets as a percentage of total bank assets		1.97	%		1.46	%		0.57	%

Allowance for loan and lease losses as a percentage of total loans		2.01	%		1.86	%		1.54	%

Net charge-offs as a percentage of total loans		(0.209	)%		(0.213	)%		(0.006	)%

Accruing Loans 30-89 days or more overdue	$	66,534			54,787			32,152

At March 31, 2009, the allowance for loan and lease losses was $83.777 million, an increase of $27 million, or 48 percent, from a year ago. The current quarter provision for loan loss expense was $15.7 million, an increase of $13.2 million from the same quarter in 2008. Charged-off loans for the current quarter exceeded recoveries of previously charged-off loans by $8.7 million. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will determine the level of additional provision expense.

The allowance was 2.01 percent of total loans outstanding at March 31, 2009, up from 1.54 percent at the prior year quarter end, and up from 1.86 percent at December 31, 2008. The allowance was 72 percent of non-performing assets at March 31, 2009, down from 91 percent for the prior quarter end and down from 198 percent a year ago. Non-performing assets as a percentage of total bank assets at March 31, 2009 were at 1.97 percent, up from 1.46 percent as of December 31, 2008, and up from .57 percent at March 31, 2008. “As expected, we saw higher levels of non-performing assets and delinquencies during the quarter. In addition, our net charge-offs were at much higher levels than we have historically experienced,” Blodnick said. “We don’t see any material improvement in credit quality in the near term in the current economy and will continue to focus on managing and controlling our credit quality.”

On February 9, 2009, the Company announced a definitive agreement to acquire First Company and its subsidiary First National Bank & Trust, a community bank based in Powell, Wyoming. First National Bank & Trust has three branch locations in Powell, Cody, and Lovell, Wyoming. As of December 31, 2008, First National Bank & Trust had total assets of $282 million. Upon completion of the transaction, which is subject to regulatory approval and other customary conditions of closing, First National Bank & Trust will become a wholly-owned subsidiary of the Company. The transaction is expected to close in the second quarter.

Glacier Bancorp, Inc. is a regional multi-bank holding company providing commercial banking services in 54 communities in Montana, Idaho, Utah, Washington, Wyoming and Colorado. Glacier Bancorp, Inc. is headquartered in Kalispell, Montana, and conducts its operations principally through ten community bank subsidiaries. These subsidiaries include six Montana banks: Glacier Bank of Kalispell, First Security Bank of Missoula, Valley Bank of Helena, Big Sky Western Bank of Bozeman, Western Security Bank of Billings, First Bank of Montana of Lewistown; as well as Mountain West Bank in Idaho, Utah and Washington; 1st Bank in Wyoming and Utah, Citizens Community Bank in Idaho, and Bank of the San Juans in Colorado.

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

	March 31,			December 31,			March 31,
($ in thousands except per share data)	2009			2008			2008
	(unaudited)			(audited)			(unaudited)
Assets:
Cash on hand and in banks	$	110,220			125,123			113,016
Federal funds sold		27,520			6,480			135
Interest bearing cash deposits		14,122			3,652			72,662

Investment securities, available-for-sale		965,641			990,092			691,270

Net loans receivable:
Real estate loans		847,245			838,375			720,108
Commercial loans		2,607,655			2,575,828			2,312,359
Consumer and other loans		705,805			715,990			649,401
Allowance for loan and lease losses		(83,777	)		(76,739	)		(56,680	)
Total loans, net		4,076,928			4,053,454			3,625,188

Premises and equipment, net		135,688			133,949			124,183
Real estate and other assets owned, net		18,985			11,539			2,098
Accrued interest receivable		28,143			28,777			25,900
Deferred tax asset		17,948			14,292			-
Core deposit intangible, net		12,239			13,013			13,184
Goodwill		146,259			146,752			140,301
Other assets		27,107			26,847			26,935
Total assets	$	5,580,800			5,553,970			4,834,872

Liabilities and stockholders' equity:
Non-interest bearing deposits	$	743,552			747,439			770,456
Interest bearing deposits		2,551,180			2,515,036			2,388,483
Advances from Federal Home Loan Bank		225,695			338,456			472,761
Securities sold under agreements to repurchase		199,669			188,363			191,369
Federal Reserve Discount Window		1,005,000			914,000			57,000
U.S. Treasury Tax & Loan		3,545			6,067			241,665
Other borrowed funds		2,564			2,301			2,155
Accrued interest payable		8,675			9,751			11,116
Deferred tax liability		-			-			932
Subordinated debentures		120,149			121,037			118,559
Other liabilities		38,786			34,580			37,428
Total liabilities		4,898,815			4,877,030			4,291,924

Preferred shares, $.01 par value per share. 1,000,000 shares authorized None issued or outstanding..		-			-			-
Common stock, $.01 par value per share. 117,187,500 shares authorized		615			613			539
Paid-in capital		494,874			491,794			378,547
Retained earnings - substantially restricted		193,552			185,776			159,579
Accumulated other comprehensive (loss) income		(7,056	)		(1,243	)		4,283
Total stockholders' equity		681,985			676,940			542,948
Total liabilities and stockholders' equity	$	5,580,800			5,553,970			4,834,872
Number of shares outstanding		61,509,818			61,331,273			53,918,813
Book value of equity per share		11.09			11.04			10.07

	Three months ended March 31,
($ in thousands except per share data)	2009			2008
	(unaudited)			(unaudited)
Interest income:
Real estate loans	$	14,341			12,592
Commercial loans		37,966			42,533
Consumer and other loans		11,339			12,107
Investment securities and other		11,886			8,784
Total interest income		75,532			76,016

Interest expense:
Deposits		10,134			16,869
Federal Home Loan Bank advances		1,819			5,718
Securities sold under agreements to repurchase		594			1,341
Subordinated debentures		1,907			1,873
Other borrowed funds		700			1,586
Total interest expense		15,154			27,387

Net interest income		60,378			48,629
Provision for loan losses		15,715			2,500
Net interest income after provision for loan losses		44,663			46,129

Non-interest income:
Service charges and other fees		9,019			9,471
Miscellaneous loan fees and charges		1,160			1,490
Gain on sale of loans		6,150			3,880
Gain on sale of investments		-			248
Other income		1,048			1,173
Total non-interest income		17,377			16,262
Non-interest expense:
Compensation, employee benefits and related expenses		21,944			21,097
Occupancy and equipment expense		5,895			5,133
Advertising and promotion expense		1,724			1,539
Outsourced data processing expense		671			667
Core deposit intangibles amortization		774			779
Other expenses		8,618			6,398
Total non-interest expense		39,626			35,613
Earnings before income taxes		22,414			26,778

Federal and state income tax expense		6,635			9,379
Net earnings	$	15,779			17,399

Basic earnings per share		0.26			0.32
Diluted earnings per share		0.26			0.32
Dividends declared per share		0.13			0.13
Return on average assets (annualized)		1.15	%		1.46	%
Return on average equity (annualized)		9.27	%		12.98	%
Average outstanding shares - basic		61,460,619			53,849,608
Average outstanding shares - diluted		61,468,167			54,034,186

AVERAGE BALANCE SHEET	For the three months ended 3-31-09
(Unaudited - $ in Thousands)			Interest		Average
	Average Balance		and Dividends		Yield/ Rate
ASSETS
Real Estate Loans	$	856,049		14,341		6.70	%
Commercial Loans		2,593,490		37,966		5.94	%
Consumer and Other Loans		707,260		11,339		6.50	%
Total Loans		4,156,799		63,646		6.21	%
Tax -Exempt Investment Securities (1)		425,283		5,331		5.01	%
Other Investment Securities		587,091		6,555		4.47	%
Total Earning Assets		5,169,173		75,532		5.84	%
Goodwill and Core Deposit Intangible		159,341
Other Non-Earning Assets		228,322
TOTAL ASSETS	$	5,556,836

LIABILITIES AND STOCKHOLDERS' EQUITY
NOW Accounts	$	507,950		557		0.45	%
Savings Accounts		287,454		272		0.38	%
Money Market Accounts		759,856		2,412		1.29	%
Certificates of Deposit		947,504		6,893		2.95	%
FHLB Advances		336,790		1,819		2.19	%
Repurchase Agreements and Other Borrowed Funds		1,269,324		3,201		1.02	%
Total Interest Bearing Liabilities		4,108,878		15,154		1.50	%
Non-interest Bearing Deposits		718,290
Other Liabilities		39,737
Total Liabilities		4,866,905

Common Stock		614
Paid-In Capital		493,597
Retained Earnings		191,202
Accumulated Other
Comprehensive (Loss)		4,518
Total Stockholders' Equity		689,931
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,556,836

Net Interest Income			$	60,378
Net Interest Spread						4.34	%
Net Interest Margin						4.74	%
Net Interest Margin (Tax Equivalent)						4.92	%
Return on Average Assets (annualized)						1.15	%
Return on Average Equity (annualized)						9.27	%

(1) Excludes tax effect of $2,360 thousand on non-taxable investment security income

FOR IMMEDIATE RELEASE	Contact: Michael J. Blodnick
	(406) 751-4701
	Ron J. Copher
	(406) 751-7706

Earnings Summary	Three months
($ in thousands, except per share data)	ended March 31,
	(unaudited)			(unaudited)
	2009			2008

Net earnings	$	15,779		$	17,399
Diluted earnings per share	$	0.26		$	0.32
Return on average assets (annualized)		1.15	%		1.46	%
Return on average equity (annualized)		9.27	%		12.98	%