Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2017

1st Quarter 2017 Highlights:

  • Net income of $31.3 million for the current quarter, an increase of $2.6 million, or 9 percent, over the prior year first quarter net income of $28.7 million.
  • Current quarter diluted earnings per share of $0.41, an increase of 8 percent from the prior year first quarter diluted earnings per share of $0.38.
  • Loan growth of $193 million, or 14 percent annualized, for the current quarter.
  • Core deposits increased $99.6 million, or 6 percent annualized, during the current quarter.
  • Net interest margin of 4.03 percent as a percentage of earning assets, on a tax equivalent basis, a 2 basis point increase over the 4.01 net interest margin in the first quarter of the prior year.
  • Dividend declared of $0.21 per share, an increase of $0.01 per share, or 5 percent, over the prior quarter.  The dividend was the 128th consecutive quarterly dividend.

Financial Highlights

  At or for the Three Months ended
(Dollars in thousands, except per share and market data) Mar 31,
 2017
  Dec 31,
 2016
  Mar 31,
 2016
Operating results          
Net income $ 31,255     31,041     28,682  
Basic earnings per share $ 0.41     0.41     0.38  
Diluted earnings per share $ 0.41     0.41     0.38  
Dividends declared per share 1 $ 0.21     0.50     0.20  
Market value per share          
Closing $ 33.93     36.23     25.42  
High $ 38.03     37.66     26.34  
Low $ 32.47     27.50     22.19  
Selected ratios and other data          
Number of common stock shares outstanding 76,619,952    76,525,402    76,168,388 
Average outstanding shares – basic 76,572,116    76,525,402    76,126,251 
Average outstanding shares – diluted 76,633,283    76,615,272    76,173,417 
Return on average assets (annualized) 1.35 %   1.33 %   1.28 %
Return on average equity (annualized) 11.19 %   10.82 %   10.53 %
Efficiency ratio 55.57 %   55.08 %   56.53 %
Dividend payout ratio 1 51.22 %   121.95 %   52.63 %
Loan to deposit ratio 78.91 %   78.10 %   74.65 %
Number of full time equivalent employees 2,224    2,222    2,184 
Number of locations 142    142    144 
Number of ATMs 161    166    167 
__________
1 Includes a special dividend declared of $0.30 per share for the three months ended December 31, 2016.

KALISPELL, Mont., April 20, 2017 (GLOBE NEWSWIRE) — Glacier Bancorp, Inc. (Nasdaq:GBCI) reported net income of $31.3 million for the current quarter, an increase of $2.6 million, or 9 percent, from the $28.7 million of net income for the prior year first quarter.  Diluted earnings per share for the current quarter was $0.41 per share, an increase of $0.03, or 8 percent, from the prior year first quarter diluted earnings per share of $0.38.  “This strong first quarter performance is a great start to 2017 for Glacier Bancorp,” said Randy Chesler, President and Chief Executive Officer.  “Our 13 Bank divisions and the supporting staff groups did an excellent job,” Chesler said.

Asset Summary

              $ Change from
(Dollars in thousands) Mar 31,
 2017
  Dec 31,
 2016
  Mar 31,
 2016
  Dec 31,
 2016
  Mar 31,
 2016
Cash and cash equivalents $ 234,004     152,541     150,861     81,463     83,143  
Investment securities, available-for-sale     2,314,521     2,425,477     2,604,625     (110,956 )   (290,104 )
Investment securities, held-to-maturity 667,388     675,674     691,663     (8,286 )   (24,275 )
Total investment securities 2,981,909     3,101,151     3,296,288     (119,242 )   (314,379 )
Loans receivable                  
Residential real estate 685,458     674,347     685,026     11,111     432  
Commercial real estate 3,056,372     2,990,141     2,680,691     66,231     375,681  
Other commercial 1,462,110     1,342,250     1,172,956     119,860     289,154  
Home equity 433,554     434,774     423,895     (1,220 )   9,659  
Other consumer 239,480     242,951     234,625     (3,471 )   4,855  
Loans receivable 5,876,974     5,684,463     5,197,193     192,511     679,781  
Allowance for loan and lease losses (129,226 )   (129,572 )   (130,071 )   346     845  
Loans receivable, net 5,747,748     5,554,891     5,067,122     192,857     680,626  
Other assets 590,247     642,017     606,471     (51,770 )   (16,224 )
Total assets $ 9,553,908     9,450,600     9,120,742     103,308     433,166  

Total investment securities of $2.982 billion at March 31, 2017 decreased $119 million, or 4 percent, during the current quarter and decreased $314 million, or 10 percent, from the prior year first quarter.  The decrease in the investment portfolio resulted from the Company redeploying the investment securities portfolio cash flow into the Company’s higher yielding loan portfolio.  Investment securities represented 31 percent of total assets at March 31, 2017 compared to 33 percent of total assets at December 31, 2016 and 36 percent of total assets at March 31, 2016.

The Company experienced another strong quarter for loan growth with an increase of $193 million, or 14 percent annualized, during the current quarter.  The loan category with the largest increase was other commercial loans which increased $120 million, or 9 percent, and included an increase of $42 million from municipal loans.   Excluding the acquisition of Treasure State Bank (“TSB”), the loan portfolio increased $628 million, or 12 percent, since March 31, 2016 with the primary increase coming from growth in commercial real estate and other commercial loans of $351 million and $281 million, respectively.  “First quarter loan growth was strong, driven by municipal lending growth and broad based activity across our thirteen Bank divisions,” Chesler said.

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,
 2017
  Dec 31,
 2016
  Mar 31,
 2016
Allowance for loan and lease losses          
Balance at beginning of period $ 129,572     129,697     129,697  
Provision for loan losses 1,598     2,333     568  
Charge-offs (4,229 )   (11,496 )   (1,163 )
Recoveries 2,285     9,038     969  
Balance at end of period $ 129,226     129,572     130,071  
Other real estate owned $ 17,771     20,954     22,085  
Accruing loans 90 days or more past due 3,028     1,099     4,615  
Non-accrual loans 50,674     49,332     53,523  
Total non-performing assets $ 71,473     71,385     80,223  
Non-performing assets as a percentage of subsidiary assets 0.75 %   0.76 %   0.88 %
Allowance for loan and lease losses as a percentage of non-performing loans   241 %   257 %   224 %
Allowance for loan and lease losses as a percentage of total loans 2.20 %   2.28 %   2.50 %
Net charge-offs as a percentage of total loans 0.03 %   0.04 %   %
Accruing loans 30-89 days past due $ 39,160     25,617     23,996  
Accruing troubled debt restructurings $ 38,955     52,077     53,311  
Non-accrual troubled debt restructurings $ 19,479     21,693     23,879  
U.S. government guarantees included in non-performing assets $ 1,690     1,746     2,247  

Non-performing assets at March 31, 2017 were $71.5 million, with a slight increase from the prior quarter and a decrease of $8.8 million, or 11 percent, from a year ago.  Non-performing assets as a percentage of subsidiary assets at March 31, 2017 was 0.75 percent, which was a decrease of 13 basis points from the prior year first quarter of 0.88 percent.  Early stage delinquencies (accruing loans 30-89 days past due) of $39.2 million at March 31, 2017 increased $13.5 million from the prior quarter and increased $15.2 million from the prior year first quarter with half of the increase from one loan that the Company is currently in the process of evaluating.   The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at March 31, 2017 was 2.20 percent, a decrease of 8 basis points from 2.28 percent at December 31, 2016.

Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands)   Provision
for Loan
Losses
  Net
Charge-Offs
(Recoveries)
  ALLL
as a Percent
of Loans
  Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
  Non-Performing
Assets to
Total Subsidiary
Assets
First quarter 2017 $ 1,598     $ 1,944     2.20 %   0.67 %   0.75 %
Fourth quarter 2016 1,139     4,101     2.28 %   0.45 %   0.76 %
Third quarter 2016 626     478     2.37 %   0.49 %   0.84 %
Second quarter 2016     (2,315 )   2.46 %   0.44 %   0.82 %
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 %

Net charge-offs for the current quarter were $1.9 million compared to $4.1 million for the prior quarter and $194 thousand from the same quarter last year.  The quarterly net charge-offs continue to experience a fair amount of volatility on a quarterly basis.  There was $1.6 million of current quarter provision for loan losses, compared to $1.1 million in the prior quarter and $568 thousand in 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,
 2017
  Dec 31,
 2016
  Mar 31,
 2016
  Dec 31,
 2016
  Mar 31,
 2016
Deposits                  
Non-interest bearing deposits $ 2,049,476     2,041,852     1,887,004     7,624     162,472  
NOW and DDA accounts 1,596,353     1,588,550     1,448,454     7,803     147,899  
Savings accounts 1,035,023     996,061     879,541     38,962     155,482  
Money market deposit accounts 1,516,731     1,464,415     1,411,970     52,316     104,761  
Certificate accounts 941,628     948,714     1,063,735     (7,086 )   (122,107 )
Core deposits, total 7,139,211     7,039,592     6,690,704     99,619     448,507  
Wholesale deposits 340,946     332,687     325,490     8,259     15,456  
Deposits, total 7,480,157     7,372,279     7,016,194     107,878     463,963  
Repurchase agreements 497,187     473,650     445,960     23,537     51,227  
Federal Home Loan Bank advances   211,627     251,749     313,969     (40,122 )   (102,342 )
Other borrowed funds 8,894     4,440     6,633     4,454     2,261  
Subordinated debentures 126,027     125,991     125,884     36     143  
Other liabilities 94,776     105,622     118,422     (10,846 )   (23,646 )
Total liabilities $ 8,418,668     8,333,731     8,027,062     84,937     391,606  

The Company benefited from the current quarter growth in core deposits which increased $99.6 million, or 6 percent annualized, from the prior quarter.  Excluding the TSB acquisition, core deposits increased $390 million, or 6 percent, from March 31, 2016.  Non-interest bearing deposits of $2.049 billion at March 31, 2017 increased $7.6 million, or 37 basis points, from the prior quarter.  Excluding the TSB acquisition, non-interest bearing deposits increased $149 million, or 8 percent, from March 31, 2016.

Securities sold under agreements to repurchase (“repurchase agreements”) of $497 million at March 31, 2017 increased $23.5 million, or 5 percent, from the prior quarter and increased $51.2 million, or 11 percent, from the prior year first quarter.  Federal Home Loan Bank (“FHLB”) advances of $212 million at March 31, 2017 decreased $40.1 million, or 16 percent, from the prior quarter and decreased $102 million, or 33 percent, from the prior year first quarter due to the increase in deposits.

Stockholders’ Equity Summary

              $ Change from
(Dollars in thousands, except per share data) Mar 31,
 2017
  Dec 31,
 2016
  Mar 31,
 2016
  Dec 31,
 2016
  Mar 31,
 2016
Common equity $ 1,139,652     1,124,251     1,088,359     15,401     51,293  
Accumulated other comprehensive (loss) income   (4,412 )   (7,382 )   5,321     2,970     (9,733 )
Total stockholders’ equity 1,135,240     1,116,869     1,093,680     18,371     41,560  
Goodwill and core deposit intangible, net (158,799 )   (159,400 )   (154,396 )   601     (4,403 )
Tangible stockholders’ equity $ 976,441     957,469     939,284     18,972     37,157  

Stockholders’ equity to total assets 11.88 %     11.82 %     11.99 %            
Tangible stockholders’ equity to total tangible assets       10.39 %   10.31 %   10.48 %        
Book value per common share $ 14.82     14.59     14.36     0.23     0.46  
Tangible book value per common share $ 12.74     12.51     12.33     0.23     0.41  

Tangible stockholders’ equity of $976 million at March 31, 2017 increased $19.0 million, or 2 percent, from the prior quarter primarily as a result of earnings retention and an increase in accumulated other comprehensive income.  Tangible stockholders’ equity increased $37.2 million, or 4 percent, from a year ago, the result of earnings retention and $10.5 million of Company stock issued in connection with the TSB acquisition; such increases more than offset the increase in goodwill and other intangibles from the acquisition and the decrease in accumulated other comprehensive income.  Tangible book value per common share at quarter end increased $0.23 per share from the prior quarter and increased $0.41 per share from a year ago.

Cash Dividend
On March 29, 2017, the Company’s Board of Directors declared a quarterly cash dividend of $0.21 per share, an increase of $0.01 per share, or 5 percent.  The dividend was payable April 20, 2017 to shareholders of record April 11, 2017.  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, 2017
Compared to December 31, 2016 and March 31, 2016

Income Summary

  Three Months ended   $ Change from
(Dollars in thousands) Mar 31,
 2017
    Dec 31,
 2016
    Mar 31,
 2016
    Dec 31,
 2016
    Mar 31,
 2016
Net interest income                  
Interest income $ 87,628     87,759     84,381     (131 )   3,247  
Interest expense 7,366     7,214     7,675     152     (309 )
Total net interest income 80,262     80,545     76,706     (283 )   3,556  
Non-interest income                  
Service charges and other fees 15,633     15,645     14,681     (12 )   952  
Miscellaneous loan fees and charges         980     1,234     1,021     (254 )   (41 )
Gain on sale of loans 6,358     9,765     5,992     (3,407 )   366  
(Loss) gain on sale of investments (100 )   (757 )   108     657     (208 )
Other income 2,818     2,127     2,450     691     368  
Total non-interest income 25,689     28,014     24,252     (2,325 )   1,437  
  $ 105,951     108,559     100,958     (2,608 )   4,993  
Net interest margin (tax-equivalent) 4.03 %   4.02 %   4.01 %        

Net Interest Income
In the current quarter, interest income of $87.6 million decreased $131 thousand, or 15 basis points, from the prior quarter which was primarily attributable to two less days during the current quarter.  Current quarter interest income increased $3.2 million, or 4 percent, over the prior year first quarter.  Current quarter interest income on commercial loans increased $5.5 million, or 12 percent, from the prior year first quarter which more than offset the $1.9 million decrease in investment interest income.

The current quarter interest expense of $7.4 million increased $152 thousand, or 2 percent, from the prior quarter and decreased $309 thousand, or 4 percent, from the prior year first quarter.  The total cost of funding (including non-interest bearing deposits) for the current quarter was 37 basis points compared to 36 basis points for the prior quarter and 39 basis points for 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 4.03 percent compared to 4.02 percent in the prior quarter which was attributable to an increase in the earning asset yields from the continuing shift of lower yielding investments to higher yielding loans.  The current quarter net interest margin increased 2 basis points over the prior year first quarter net interest margin of 4.01 percent, due to a 2 basis points decrease in cost of funds and the remix of earning assets to higher yielding loans. “The Bank divisions’ focus on growing core deposits combined with the shift of cash flow from the investment portfolio into higher yielding loans supported the current quarter’s 4.03 percent net interest margin,” said Ron Copher, Chief Financial Officer.

Non-interest Income
Non-interest income for the current quarter totaled $25.7 million, a decrease of $2.3 million, or 8 percent, from the prior quarter and an increase of $1.4 million, or 6 percent, over the same quarter last year.  Service fee income of $15.6 million, increased by $952 thousand, or 6 percent, from the prior year first quarter as a result of the increased number of accounts.  Gain on sale of loans for the current quarter decreased $3.4 million, or 35 percent, from the prior quarter and was driven by the seasonal activity.  Gain on sale of loans for the current quarter increased $366 thousand, or 6 percent, from the prior year first quarter.  Other income of $2.8 million, increased $691 thousand, or 32 percent, over the prior quarter and increased $368 thousand, or 15 percent, over the prior year first quarter principally due to the current quarter gain on sale of other real estate owned (“OREO”).  Other income included a gain of $967 thousand from the sale of OREO and operating revenue of $15 thousand from OREO, a combined total of $982 thousand for the current quarter compared to $481 thousand for the prior quarter and $214 thousand for the prior year first quarter.

Non-interest Expense Summary

  Three Months ended   $ Change from
(Dollars in thousands) Mar 31,
 2017
  Dec 31,
 2016
  Mar 31,
 2016
  Dec 31,
 2016
  Mar 31,
 2016
Compensation and employee benefits $ 39,246     38,826     36,941     420     2,305  
Occupancy and equipment 6,646     6,692     6,676     (46 )   (30 )
Advertising and promotions 1,973     2,125     2,125     (152 )   (152 )
Data processing 3,124     3,409     3,373     (285 )   (249 )
Other real estate owned 273     2,076     390     (1,803 )   (117 )
Regulatory assessments and insurance     1,061     1,048     1,508     13     (447 )
Core deposit intangibles amortization 601     608     797     (7 )   (196 )
Other expenses 10,420     11,933     10,546     (1,513 )   (126 )
Total non-interest expense $ 63,344     66,717     62,356     (3,373 )   988  

The Company consolidated its Bank divisions’ individual core database systems into a single core database and re-issued debit cards with chip technology during 2016 (the Core Consolidation Project or “CCP”).  Expenses related to the CCP were $741 thousand in the fourth quarter of 2016 and $834 thousand during the first quarter of 2016. Excluding CCP expenses, non-interest expense for the current quarter decreased $2.6 million, or 4 percent, over the prior quarter and increased $1.8 million, or 4 percent, over the prior year first quarter.

Compensation and employee benefits for the current quarter increased by $2.3 million, or 6 percent, from the prior year first quarter due to salary increases, vesting of restricted stock awards and the increased number of employees, including increases from the TSB acquisition.  The current quarter OREO expense of $273 thousand included $234 thousand of operating expense, $21 thousand of fair value write-downs, and $18 thousand of loss from the sales of OREO.  The current quarter other expenses decreased $1.5 million over the prior quarter primarily from decreases related to CCP, acquisition related expenses, and expenses connected with equity investments in New Market Tax Credit projects.  Current quarter other expenses decreased $126 thousand, or 1 percent, from the prior year first quarter which was driven by decreased costs from CCP.

Efficiency Ratio
The current quarter efficiency ratio was 55.57 percent, a 49 basis points increase from the prior quarter efficiency ratio of 55.08 percent.  Although there was a reduction in expenses, the decrease in gain on sale of loans during the current quarter drove the increase in the efficiency ratio from the prior quarter.  The current quarter efficiency ratio decreased 96 basis points from the prior year first quarter ratio of 56.53 percent resulting from the increase in interest income on commercial loans, which was greater than the increase in non-interest expense.

Forward-Looking Statements
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:

  • 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;
  • changes in the cost and scope of insurance from the FDIC and other third parties;
  • 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 reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company’s ability to obtain (and maintain) customers;
  • competition among financial institutions in the Company’s markets may increase significantly;
  • 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;
  • the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
  • 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 Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
  • material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
  • natural disasters, including fires, floods, earthquakes, and other unexpected events;
  • the Company’s success in managing risks involved in the foregoing; and
  • the effects of any reputational damage to the Company resulting from any of 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 Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, April 21, 2017.  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 5756292.  To participate on the webcast, log on to: http://edge.media-server.com/m/p/bi5xib4n. 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 5756292 until May 5, 2017.

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,
 2017
  December 31,
 2016
  March 31,
 2016
Assets          
Cash on hand and in banks $ 124,501     135,268     104,222  
Federal funds sold 190         1,400  
Interest bearing cash deposits 109,313     17,273     45,239  
Cash and cash equivalents 234,004     152,541     150,861  
Investment securities, available-for-sale 2,314,521     2,425,477     2,604,625  
Investment securities, held-to-maturity 667,388     675,674     691,663  
Total investment securities 2,981,909     3,101,151     3,296,288  
Loans held for sale 25,649     72,927     40,484  
Loans receivable 5,876,974     5,684,463     5,197,193  
Allowance for loan and lease losses (129,226 )   (129,572 )   (130,071 )
Loans receivable, net 5,747,748     5,554,891     5,067,122  
Premises and equipment, net 175,283     176,198     192,951  
Other real estate owned 17,771     20,954     22,085  
Accrued interest receivable 48,043     45,832     47,363  
Deferred tax asset 64,575     67,121     55,773  
Core deposit intangible, net 11,746     12,347     13,758  
Goodwill 147,053     147,053     140,638  
Non-marketable equity securities 23,944     25,550     24,199  
Other assets 76,183     74,035     69,220  
Total assets $ 9,553,908     9,450,600     9,120,742  
Liabilities          
Non-interest bearing deposits $ 2,049,476     2,041,852     1,887,004  
Interest bearing deposits 5,430,681     5,330,427     5,129,190  
Securities sold under agreements to repurchase 497,187     473,650     445,960  
FHLB advances 211,627     251,749     313,969  
Other borrowed funds 8,894     4,440     6,633  
Subordinated debentures 126,027     125,991     125,884  
Accrued interest payable 3,467     3,584     3,608  
Other liabilities 91,309     102,038     114,814  
Total liabilities 8,418,668     8,333,731     8,027,062  
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 766     765     762  
Paid-in capital 749,381     749,107     736,664  
Retained earnings – substantially restricted 389,505     374,379     350,933  
Accumulated other comprehensive (loss) income (4,412 )   (7,382 )   5,321  
Total stockholders’ equity 1,135,240     1,116,869     1,093,680  
Total liabilities and stockholders’ equity $ 9,553,908     9,450,600     9,120,742  

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 
  Three Months ended
(Dollars in thousands, except per share data) March 31,
 2017
  December 31,
 2016
  March 31,
 2016
Interest Income          
Investment securities $ 21,939     21,645     23,883  
Residential real estate loans 7,918     8,463     8,285  
Commercial loans 49,970     49,750     44,503  
Consumer and other loans 7,801     7,901     7,710  
Total interest income 87,628     87,759     84,381  
Interest Expense          
Deposits 4,440     4,497     4,795  
Securities sold under agreements to repurchase 382     325     318  
Federal Home Loan Bank advances 1,510     1,377     1,652  
Federal funds purchased and other borrowed funds 15     18     18  
Subordinated debentures 1,019     997     892  
Total interest expense 7,366     7,214     7,675  
Net Interest Income 80,262     80,545     76,706  
Provision for loan losses 1,598     1,139     568  
Net interest income after provision for loan losses 78,664     79,406     76,138  
Non-Interest Income          
Service charges and other fees 15,633     15,645     14,681  
Miscellaneous loan fees and charges 980     1,234     1,021  
Gain on sale of loans 6,358     9,765     5,992  
(Loss) gain on sale of investments (100 )   (757 )   108  
Other income 2,818     2,127     2,450  
Total non-interest income 25,689     28,014     24,252  
Non-Interest Expense          
Compensation and employee benefits 39,246     38,826     36,941  
Occupancy and equipment 6,646     6,692     6,676  
Advertising and promotions 1,973     2,125     2,125  
Data processing 3,124     3,409     3,373  
Other real estate owned 273     2,076     390  
Regulatory assessments and insurance 1,061     1,048     1,508  
Core deposit intangibles amortization 601     608     797  
Other expenses 10,420     11,933     10,546  
Total non-interest expense 63,344     66,717     62,356  
Income Before Income Taxes 41,009     40,703     38,034  
Federal and state income tax expense 9,754     9,662     9,352  
Net Income $ 31,255     31,041     28,682  

Glacier Bancorp, Inc.
Average Balance Sheets
 
  Three Months ended
  March 31, 2017   March 31, 2016
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 709,432     $ 7,918     4.46 %   $ 726,270     $ 8,285     4.56 %
Commercial loans 1 4,372,299     51,335     4.76 %   3,749,929     45,335     4.86 %
Consumer and other loans 672,480     7,801     4.70 %   653,839     7,710     4.74 %
Total loans 2 5,754,211     67,054     4.73 %   5,130,038     61,330     4.81 %
Tax-exempt investment securities 3 1,245,358     17,761     5.70 %   1,352,683     19,383     5.73 %
Taxable investment securities 4 1,857,335     10,575     2.28 %   1,999,000     11,461     2.29 %
Total earning assets 8,856,904     95,390     4.37 %   8,481,721     92,174     4.37 %
Goodwill and intangibles 159,089             154,790          
Non-earning assets 369,274             390,891          
Total assets $ 9,385,267             $ 9,027,402          
Liabilities                      
Non-interest bearing deposits $ 1,970,654     $     %   $ 1,863,389     $     %
NOW and DDA accounts 1,575,928     247     0.06 %   1,465,181     293     0.08 %
Savings accounts 1,015,108     146     0.06 %   863,764     104     0.05 %
Money market deposit accounts 1,490,198     565     0.15 %   1,406,718     553     0.16 %
Certificate accounts 953,527     1,333     0.57 %   1,071,055     1,564     0.59 %
Wholesale deposits 5 332,255     2,149     2.62 %   335,126     2,281     2.74 %
FHLB advances 271,225     1,510     2.23 %   308,040     1,652     2.12 %
Repurchase agreements and  other borrowed funds 562,628     1,416     1.02 %   521,565     1,228     0.95 %
Total funding liabilities 8,171,523     7,366     0.37 %   7,834,838     7,675     0.39 %
Other liabilities 81,419             96,701          
Total liabilities 8,252,942             7,931,539          
Stockholders’ Equity                      
Common stock 766             761          
Paid-in capital 748,851             736,398          
Retained earnings 389,798             351,536          
Accumulated other comprehensive  (loss) income (7,090 )           7,168          
Total stockholders’ equity 1,132,325             1,095,863          
Total liabilities and stockholders’ equity $ 9,385,267             $ 9,027,402          
Net interest income (tax-equivalent)     $ 88,024             $ 84,499      
Net interest spread (tax-equivalent)         4.00 %           3.98 %
Net interest margin (tax-equivalent)         4.03 %           4.01 %
_____________
Includes tax effect of $1.4 million and $832 thousand on tax-exempt municipal loan and lease income for the three months ended March 31, 2017 and 2016, 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.
Includes tax effect of $6.1 million and $6.6 million on tax-exempt investment securities income for the three months ended March 31, 2017 and 2016, respectively.
Includes tax effect of $338 thousand and $352 thousand on federal income tax credits for the three months ended March 31, 2017 and 2016, respectively.
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,
 2017
  Dec 31,
 2016
  Mar 31,
 2016
  Dec 31,
 2016
  Mar 31,
 2016
Custom and owner occupied construction $ 92,835     $ 86,233     $ 68,893     8 %   35 %
Pre-sold and spec construction 68,736     66,184     59,220     4 %   16 %
Total residential construction 161,571     152,417     128,113     6 %   26 %
Land development 78,042     75,078     59,539     4 %   31 %
Consumer land or lots 94,840     97,449     93,922     (3 )%   1 %
Unimproved land 66,857     69,157     73,791     (3 )%   (9 )%
Developed lots for operative builders 13,046     13,254     12,973     (2 )%   1 %
Commercial lots 26,639     30,523     23,558     (13 )%   13 %
Other construction 272,184     257,769     166,378     6 %   64 %
Total land, lot, and other construction 551,608     543,230     430,161     2 %   28 %
Owner occupied 988,544     977,932     944,411     1 %   5 %
Non-owner occupied 964,913     929,729     806,856     4 %   20 %
Total commercial real estate 1,953,457     1,907,661     1,751,267     2 %   12 %
Commercial and industrial 739,475     686,870     664,855     8 %   11 %
Agriculture 411,094     407,208     372,616     1 %   10 %
1st lien 839,387     877,893     841,848     (4 )%   %
Junior lien 54,801     58,564     63,162     (6 )%   (13 )%
Total 1-4 family 894,188     936,457     905,010     (5 )%   (1 )%
Multifamily residential 162,636     184,068     197,267     (12 )%   (18 )%
Home equity lines of credit 405,309     402,614     379,866     1 %   7 %
Other consumer 153,159     155,193     150,047     (1 )%   2 %
Total consumer 558,468     557,807     529,913     %   5 %
Other 470,126     381,672     258,475     23 %   82 %
Total loans receivable, including  loans held for sale     5,902,623     5,757,390     5,237,677     3 %   13 %
Less loans held for sale 1 (25,649 )   (72,927 )   (40,484 )   (65 )%   (37 )%
Total loans receivable $ 5,876,974     $ 5,684,463     $ 5,197,193     3 %   13 %
_________
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-
Accrual
Loans
  Accruing
Loans 90 Days
or More Past Due
  Other
Real Estate
Owned
(Dollars in thousands) Mar 31,
 2017
  Dec 31,
 2016
  Mar 31,
 2016
  Mar 31,
 2017
  Mar 31,
 2017
  Mar 31,
 2017
Custom and owner occupied construction $         995              
Pre-sold and spec construction 227     226         227          
Total residential construction 227     226     995     227          
Land development 8,856     9,864     18,190     1,482         7,374  
Consumer land or lots 1,728     2,137     1,751     754         974  
Unimproved land 12,017     11,905     11,651     8,137         3,880  
Developed lots for operative builders 116     175     457             116  
Commercial lots 1,255     1,466     1,333             1,255  
Total land, lot and other construction     23,972     25,547     33,382     10,373         13,599  
Owner occupied 17,956     18,749     12,130     16,109     148     1,699  
Non-owner occupied 3,194     3,426     4,354     3,194          
Total commercial real estate 21,150     22,175     16,484     19,303     148     1,699  
Commercial and industrial 4,466     5,184     6,046     4,298     65     103  
Agriculture 1,878     1,615     3,220     1,488     390      
1st lien 10,047     9,186     11,041     8,037     296     1,714  
Junior lien 1,335     1,167     1,111     1,286     49      
Total 1-4 family 11,382     10,353     12,152     9,323     345     1,714  
Multifamily residential 388     400     432     388          
Home equity lines of credit 6,008     5,494     5,432     5,136     232     640  
Other consumer 202     391     280     138     48     16  
Total consumer 6,210     5,885     5,712     5,274     280     656  
Other 1,800         1,800         1,800      
Total $ 71,473     71,385     80,223     50,674     3,028     17,771  

 

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,
 2017
  Dec 31,
 2016
  Mar 31,
 2016
  Dec 31,
 2016
  Mar 31,
 2016
Custom and owner occupied construction $ 380     $ 1,836     $     (79 )%   n/m 
Pre-sold and spec construction 488         304     n/m    61 %
Total residential construction 868     1,836     304     (53 )%   186 %
Land development     154     198     (100 )%   (100 )%
Consumer land or lots 432     638     796     (32 )%   (46 )%
Unimproved land 938     1,442     1,284     (35 )%   (27 )%
Commercial lots 258             n/m    n/m 
Other construction 7,125             n/m    n/m 
Total land, lot and other construction               8,753     2,234     2,278     292 %   284 %
Owner occupied 6,686     2,307     4,552     190 %   47 %
Non-owner occupied 405     1,689     1,466     (76 )%   (72 )%
Total commercial real estate 7,091     3,996     6,018     77 %   18 %
Commercial and industrial 6,796     3,032     4,907     124 %   38 %
Agriculture 3,567     1,133     659     215 %   441 %
1st lien 7,132     7,777     5,896     (8 )%   21 %
Junior lien 848     1,016     759     (17 )%   12 %
Total 1-4 family 7,980     8,793     6,655     (9 )%   20 %
Multifamily Residential 2,028     10         20,180 %   n/m 
Home equity lines of credit 703     1,537     2,528     (54 )%   (72 )%
Other consumer 1,317     1,180     607     12 %   117 %
Total consumer 2,020     2,717     3,135     (26 )%   (36 )%
Other 57     1,866     40     (97 )%   43 %
Total $ 39,160     $ 25,617     $ 23,996     53 %   63 %
__________
n/m – not measurable

Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
 
  Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan Type
  Charge-Offs   Recoveries
(Dollars in thousands) Mar 31,
 2017
  Dec 31,
 2016
  Mar 31,
 2016
  Mar 31,
 2017
  Mar 31,
 2017
Custom and owner occupied construction $     (1 )            
Pre-sold and spec construction (11 )   786     (28 )       11  
Total residential construction (11 )   785     (28 )       11  
Land development (33 )   (2,661 )   (100 )       33  
Consumer land or lots (57 )   (688 )   (240 )       57  
Unimproved land (96 )   (184 )   (34 )       96  
Developed lots for operative builders (5 )   (27 )   (12 )       5  
Commercial lots (2 )   27     23         2  
Total land, lot and other construction   (193 )   (3,533 )   (363 )       193  
Owner occupied 795     1,196     (27 )   888     93  
Non-owner occupied (1 )   44     (1 )       1  
Total commercial real estate 794     1,240     (28 )   888     94  
Commercial and industrial 344     (370 )   69     470     126  
Agriculture (3 )   50     (1 )       3  
1st lien (15 )   487     47     44     59  
Junior lien (16 )   60     (15 )       16  
Total 1-4 family (31 )   547     32     44     75  
Multifamily residential     229     229          
Home equity lines of credit 12     611     179     75     63  
Other consumer (11 )   257     95     73     84  
Total consumer 1     868     274     148     147  
Other 1,043     2,642     10     2,679     1,636  
Total $ 1,944     2,458     194     4,229     2,285  

Visit our website at www.glacierbancorp.com 

CONTACT: CONTACT: Randall M. Chesler, CEO
(406) 751-4722
Ron J. Copher, CFO
(406) 751-7706

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