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CST: 23/08/2019 21:26:38   

Glacier Bancorp, Inc. Announces Results for the Quarter Ended June 30, 2019

36 Days ago

2nd Quarter 2019 Highlights:

  • Net income of $52.4 million for the current quarter, an increase of $8.0 million, or 18 percent, over the prior year second quarter net income of $44.4 million.
  • Current quarter diluted earnings per share of $0.61, an increase of 17 percent from the prior year second quarter diluted earnings per share of $0.52.
  • Current quarter organic loan growth was $270 million, or 13 percent annualized.
  • Core deposits organically grew $40.1 million, or 2 percent annualized, during the current quarter with non-interest bearing deposit growth of $120 million, or 16 percent annualized.
  • Net interest margin of 4.33 percent was stable compared to 4.34 percent in the prior quarter and increased 16 basis points over the prior year second quarter.  Loan yields increased 2 basis points in the current quarter  and the cost of core deposits remained unchanged.
  • Stable credit quality with non-performing assets as a percentage of subsidiary assets improving to 0.41 percent in the current quarter compared to 0.42 percent for the prior quarter and 0.71 percent from the prior year second quarter.
  • Dividend declared of $0.27 per share, or 4 percent increase over the prior quarter.  The dividend was the 137th consecutive quarterly dividend declared by the Company.
  • The Company completed the acquisition of FNB Bancorp, the holding company for The First National Bank of Layton, a community bank based in Layton, Utah, with total assets of $379 million.
  • The Company has received all regulatory approvals for the acquisition of Heritage Bancorp, the parent company of Heritage Bank of Nevada, a community bank based in Reno, Nevada, with total assets of $842 million at June 30, 2019.  The acquisition is expected to be completed effective July 31, 2019.

First Half of 2019 Highlights:

  • Net income of $101.5 million for the first half of 2019, an increase of $18.6 million, or 22 percent, over the first half of 2018 net income of $82.9 million.
  • Diluted earnings per share of $1.19, an increase of 19 percent from the prior year first six months diluted earnings per share of $1.00.
  • Organic loan growth was $309 million, or 7 percent annualized, for the first half of 2019.
  • Core deposits organically grew $110 million, or 2 percent annualized, during the current year with non-interest bearing deposit growth of $170 million, or 11 percent annualized.
  • Dividend declared of $0.53 per share, an increase of $0.04 per share, or 8 percent, over the prior year first six months dividends of $0.49.

Financial Highlights

  At or for the Three Months ended   At or for the Six Months ended
(Dollars in thousands, except per share and market data) Jun 30,
2019
  Mar 31,
2019
  Jun 30,
2018
  Jun 30,
2019
  Jun 30,
2018
Operating results                  
Net income $ 52,392     49,132     44,384     101,524     82,943  
Basic earnings per share $ 0.61     0.58     0.53     1.19     1.00  
Diluted earnings per share $ 0.61     0.58     0.52     1.19     1.00  
Dividends declared per share $ 0.27     0.26     0.26     0.53     0.49  
Market value per share                  
Closing $ 40.55     40.07     38.68     40.55     38.68  
High $ 43.44     45.47     41.47     45.47     41.47  
Low $ 38.65     37.58     35.77     37.58     35.77  
Selected ratios and other data                  
Number of common stock shares outstanding 86,637,394   84,588,199   84,516,650   86,637,394   84,516,650
Average outstanding shares - basic 85,826,290   84,549,974   84,514,257   85,191,658   82,671,816
Average outstanding shares - diluted 85,858,286   84,614,248   84,559,268   85,241,238   82,734,407
Return on average assets (annualized) 1.69 %   1.67 %   1.53 %   1.68 %   1.52 %
Return on average equity (annualized) 12.82 %   13.02 %   12.07 %   12.91 %   11.99 %
Efficiency ratio 54.50 %   55.37 %   55.44 %   54.93 %   56.54 %
Dividend payout ratio 44.26 %   44.83 %   49.06 %   44.54 %   49.00 %
Loan to deposit ratio 90.27 %   87.14 %   84.92 %   90.27 %   84.92 %
Number of full time equivalent employees 2,703   2,634   2,605   2,703   2,605
Number of locations 175   169   167   175   167
Number of ATMs 228   222   221   228   221

KALISPELL, Mont., July 18, 2019 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $52.4 million for the current quarter, an increase of $8.0 million, or 18 percent, from the $44.4 million of net income for the prior year second quarter.  Diluted earnings per share for the current quarter was $0.61 per share, an increase of 17 percent from the prior year second quarter diluted earnings per share of $0.52.  Included in the current quarter was $1.8 million of acquisition-related expenses.  “We saw excellent loan growth this quarter supported by a stable net interest margin, consistent credit performance and efficiency at targeted levels.  Growth in earnings per share and interest income were strong,” said Randy Chesler, President and Chief Executive Officer.  “Hats off to the Glacier divisions for delivering another quarter of strong results and we welcome First Community Bank Utah to the Glacier team.”

Net income for the first six months ended June 30, 2019 was $101.5 million, an increase of $18.6 million, or 22 percent, from the $82.9 million of net income for the first six months of the prior year.  Diluted earnings per share for the first half of the current year was $1.19 per share, an increase of $0.19, or 19 percent, from the diluted earnings per share of $1.00 for the same period in the prior year.

In the second quarter of 2019, the Company announced the signing of a definitive agreement to acquire Heritage Bancorp, the bank holding company for Heritage Bank of Nevada, a community bank based in Reno, Nevada (collectively, “Heritage”).  Heritage provides banking services to individuals and businesses throughout Northern Nevada with seven banking offices located in Carson City, Gardnerville, Reno and Sparks.  As of June 30, 2019, Heritage had total assets of $842 million, gross loans of $612 million and total deposits of $717 million.  The acquisition has received the required regulatory approvals, is subject to other customary conditions of closing and is expected to be completed effective July 31, 2019.  Upon closing of the transaction, Heritage will become the Company’s sixteenth Bank division.

On April 30, 2019, the Company completed the acquisition of FNB Bancorp, the holding company for The First National Bank of Layton, a community bank based in Layton, Utah (“FNB”).  FNB provides banking services to individuals and businesses throughout Utah with six banking offices located in Layton, Bountiful, Clearfield, and Draper.  Upon closing of the transaction, FNB became First Community Bank Utah, the Company’s fifteenth Bank division.  The Company’s results of operations and financial condition include the acquisition beginning on the acquisition date and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:

  FNB
(Dollars in thousands) April 30,
2019
Total assets $ 379,155  
Debt securities 47,247  
Loans receivable 245,485  
Non-interest bearing deposits 93,647  
Interest bearing deposits 180,999  
Borrowings 7,273  

Asset Summary

                  $ Change from
(Dollars in thousands) Jun 30,
2019
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
Cash and cash equivalents $ 231,209     202,527     203,790     368,132     28,682     27,419     (136,923 )
Debt securities, available-for-sale 2,470,634     2,522,322     2,571,663     2,177,352     (51,688 )   (101,029 )   293,282  
Debt securities, held-to-maturity 252,097     255,572     297,915     620,409     (3,475 )   (45,818 )   (368,312 )
Total debt securities 2,722,731     2,777,894     2,869,578     2,797,761     (55,163 )   (146,847 )   (75,030 )
Loans receivable                          
Residential real estate 920,715     884,732     887,742     835,382     35,983     32,973     85,333  
Commercial real estate 4,959,863     4,686,082     4,657,561     4,384,781     273,781     302,302     575,082  
Other commercial 2,076,605     1,909,452     1,911,171     1,940,435     167,153     165,434     136,170  
Home equity 596,041     562,381     544,688     511,043     33,660     51,353     84,998  
Other consumer 288,553     283,423     286,387     277,031     5,130     2,166     11,522  
Loans receivable 8,841,777     8,326,070     8,287,549     7,948,672     515,707     554,228     893,105  
Allowance for loan and lease losses (129,054 )   (129,786 )   (131,239 )   (131,564 )   732     2,185     2,510  
Loans receivable, net 8,712,723     8,196,284     8,156,310     7,817,108     516,439     556,413     895,615  
Other assets 1,009,698     897,074     885,806     914,643     112,624     123,892     95,055  
Total assets $ 12,676,361     12,073,779     12,115,484     11,897,644     602,582     560,877     778,717  

Total debt securities of $2.723 billion at June 30, 2019 decreased $55.2 million, or 2 percent, during the current quarter and decreased $75.0 million, or 3 percent, from the prior year second quarter.   Debt securities represented 21 percent of total assets at June 30, 2019 compared to 24 percent of total assets at December 31, 2018 and June 30, 2018.

The loan portfolio of $8.842 billion increased $270 million, or 13 percent annualized, during the current quarter excluding the FNB acquisition.  The loan category with the largest increase was other commercial loans which increased $114 million, or 6 percent.  Excluding the acquisition, the loan portfolio increased $648 million, or 8 percent, since June 30, 2018, with the largest increase in commercial real estate loans, which increased $397 million, or 9 percent.

Credit Quality Summary

  At or for the Six Months ended   At or for the Three Months ended   At or for the Year ended   At or for the Six Months ended
(Dollars in thousands) Jun 30,
2019
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
Allowance for loan and lease losses              
Balance at beginning of period $ 131,239     131,239     129,568     129,568  
Provision for loan losses 57     57     9,953     5,513  
Charge-offs (6,200 )   (3,341 )   (17,807 )   (7,611 )
Recoveries 3,958     1,831     9,525     4,094  
Balance at end of period $ 129,054     129,786     131,239     131,564  
Other real estate owned $ 7,281     8,125     7,480     13,616  
Accruing loans 90 days or more past due 3,463     2,451     2,018     12,751  
Non-accrual loans 41,195     40,269     47,252     58,170  
Total non-performing assets $ 51,939     50,845     56,750     84,537  
Non-performing assets as a percentage of subsidiary assets 0.41 %   0.42 %   0.47 %   0.71 %
Allowance for loan and lease losses as a percentage of non-performing loans 289 %   304 %   266 %   186 %
Allowance for loan and lease losses as a percentage of total loans 1.46 %   1.56 %   1.58 %   1.66 %
Net charge-offs as a percentage of total loans 0.03 %   0.02 %   0.10 %   0.04 %
Accruing loans 30-89 days past due $ 37,937     36,894     33,567     39,650  
Accruing troubled debt restructurings $ 25,019     24,468     25,833     34,991  
Non-accrual troubled debt restructurings $ 6,041     6,747     10,660     18,380  
U.S. government guarantees included in non-performing assets $ 2,785     2,649     4,811     7,265  

Non-performing assets of $51.9 million at June 30, 2019 increased $1.1 million, or 2 percent, over the prior quarter and decreased $32.6 million, or 39 percent, over the prior year second quarter.  Non-performing assets as a percentage of subsidiary assets at June 30, 2019 was 0.41 percent, a decrease of 1 basis point from the prior quarter, and a decrease of 30 basis points from the prior year second quarter.  Early stage delinquencies (accruing loans 30-89 days past due) of $37.9 million at June 30, 2019 increased $1.0 million from the prior quarter and decreased $1.7 million from the prior year second quarter.  Early stage delinquencies as a percentage of loans at June 30, 2019 was 0.43 percent, which was a decrease of 1 basis point from prior quarter and a decrease of 7 basis points from prior year second quarter.  The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at June 30, 2019 was 1.46 percent, which was a 10 basis points decrease compared to the prior quarter and a decrease of 20 basis points from a year ago.  The decrease was attributable to stabilizing credit quality and the addition of loans from the FNB acquisition which were added to the portfolio on a fair value basis and as a result did not require an allowance at acquisition date.

Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands) Provision
for Loan
Losses
  Net
Charge-Offs
  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
Second quarter 2019 $     $ 732     1.46 %   0.43 %   0.41 %
First quarter 2019 57     1,510     1.56 %   0.44 %   0.42 %
Fourth quarter 2018 1,246     2,542     1.58 %   0.41 %   0.47 %
Third quarter 2018 3,194     2,223     1.63 %   0.31 %   0.61 %
Second quarter 2018 4,718     762     1.66 %   0.50 %   0.71 %
First quarter 2018 795     2,755     1.66 %   0.59 %   0.64 %
Fourth quarter 2017 2,886     2,894     1.97 %   0.57 %   0.68 %
Third quarter 2017 3,327     3,628     1.99 %   0.45 %   0.67 %

Net charge-offs for the current quarter were $732 thousand compared to $1.5 million for the prior quarter and $762 thousand from the same quarter last year.  There was no current quarter provision for loan losses compared to $57 thousand in the prior quarter and $4.7 million in the prior year second 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) Jun 30,
2019
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
Deposits                          
Non-interest bearing deposits $ 3,265,077     3,051,119     3,001,178     2,914,885     213,958     263,899     350,192  
NOW and DDA accounts 2,487,806     2,383,806     2,391,307     2,354,214     104,000     96,499     133,592  
Savings accounts 1,412,046     1,373,544     1,346,790     1,330,637     38,502     65,256     81,409  
Money market deposit accounts 1,647,372     1,689,962     1,684,284     1,723,681     (42,590 )   (36,912 )   (76,309 )
Certificate accounts 897,625     896,731     901,484     927,608     894     (3,859 )   (29,983 )
Core deposits, total 9,709,926     9,395,162     9,325,043     9,251,025     314,764     384,883     458,901  
Wholesale deposits 144,949     192,953     168,724     172,550     (48,004 )   (23,775 )   (27,601 )
Deposits, total 9,854,875     9,588,115     9,493,767     9,423,575     266,760     361,108     431,300  
Repurchase agreements 494,651     489,620     396,151     361,515     5,031     98,500     133,136  
Federal Home Loan Bank advances 319,996     154,683     440,175     395,037     165,313     (120,179 )   (75,041 )
Other borrowed funds 14,765     14,738     14,708     9,917     27     57     4,848  
Subordinated debentures 139,912     134,048     134,051     134,058     5,864     5,861     5,854  
Other liabilities 164,786     141,725     120,778     99,550     23,061     44,008     65,236  
Total liabilities $ 10,988,985     10,522,929     10,599,630     10,423,652     466,056     389,355     565,333  

Excluding the acquisition, core deposits of $9.710 billion as of June 30, 2019 increased $110 million, or 2 percent annualized, from the prior quarter and increased $184 million, or 2 percent, from the prior year second quarter.  Non-interest bearing deposits organically increased $120 million, or 16 percent annualized, over the prior quarter and increased $257 million, or 9 percent, over the prior year second quarter.

Federal Home Loan Bank (“FHLB”) advances of $320 million at June 30, 2019, increased $165 million over the prior quarter and decreased $75.0 million over the prior year second quarter.  FHLB advances and wholesale deposits will continue to fluctuate to supplement liquidity needs during the year.

Stockholders’ Equity Summary

                  $ Change from
(Dollars in thousands, except per share data) Jun 30,
2019
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
Common equity $ 1,643,928     1,526,963     1,525,281     1,494,274     116,965     118,647     149,654  
Accumulated other comprehensive  income (loss) 43,448     23,887     (9,427 )   (20,282 )   19,561     52,875     63,730  
Total stockholders’ equity 1,687,376     1,550,850     1,515,854     1,473,992     136,526     171,522     213,384  
Goodwill and core deposit intangible, net (385,533 )   (337,134 )   (338,828 )   (342,243 )   (48,399 )   (46,705 )   (43,290 )
Tangible stockholders’ equity $ 1,301,843     1,213,716     1,177,026     1,131,749     88,127     124,817     170,094  


Stockholders’ equity to total assets 13.31 %   12.84 %   12.51 %   12.39 %            
Tangible stockholders’ equity to total tangible assets 10.59 %   10.34 %   9.99 %   9.79 %            
Book value per common share $ 19.48     18.33     17.93     17.44     1.15     1.55     2.04  
Tangible book value per common share $ 15.03     14.35     13.93     13.39     0.68     1.10     1.64  

Tangible stockholders’ equity of $1.302 billion at June 30, 2019 increased $88.1 million compared to the prior quarter which was the result of $87.1 million of Company stock issued for the acquisition of FNB, earnings retention and an increase in other comprehensive income; such increases more than offset the increase in goodwill and core deposits associated with the acquisition.  Tangible stockholders’ equity increased $170 million over the prior year second quarter which was the result of earnings retention, an increase in other comprehensive income, and the impact from the FNB acquisition which was offset by a decrease of $25.5 million from the cumulative-effect adjustments related to the adoption of new accounting standards.  Tangible book value per common share of $15.03 at current quarter end increased $0.68 per share from the prior quarter and increased $1.64 per share from a year ago.

Cash Dividends
On June 25, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.27 per share.  The dividend was payable July 18, 2019 to shareholders of record on July 9, 2019.  The dividend was the 137th consecutive quarterly dividend.  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 June 30, 2019
Compared to March 31, 2019, and June 30, 2018

Income Summary

  Three Months ended   $ Change from
(Dollars in thousands) Jun 30,
2019
  Mar 31,
2019
  Jun 30,
2018
  Mar 31,
2019
  Jun 30,
2018
Net interest income                  
Interest income $ 132,385     126,116     117,715     6,269     14,670  
Interest expense 12,089     10,904     9,161     1,185     2,928  
Total net interest income 120,296     115,212     108,554     5,084     11,742  
Non-interest income                  
Service charges and other fees 20,025     18,015     18,804     2,010     1,221  
Miscellaneous loan fees and charges 1,192     967     2,243     225     (1,051 )
Gain on sale of loans 7,762     5,798     8,142     1,964     (380 )
Gain (loss) on sale of investments 134     213     (56 )   (79 )   190  
Other income 1,721     3,481     2,695     (1,760 )   (974 )
Total non-interest income 30,834     28,474     31,828     2,360     (994 )
Total income $ 151,130     143,686     140,382     7,444     10,748  
Net interest margin (tax-equivalent) 4.33 %   4.34 %   4.17 %        

Net Interest Income
The current quarter net interest income of $120 million increased $5.1 million, or 4 percent, over the prior quarter and increased $11.7 million, or 11 percent, from the prior year second quarter.  The increase in net interest income over the prior quarter and prior year second quarter was primarily driven by an increase in interest income on commercial loans.  Interest income on commercial loans increased $4.5 million, or 5 percent, from the prior quarter and increased $12.2 million, or 16 percent, from the prior year second quarter.

The current quarter interest expense of $12.1 million increased $1.2 million, or 11 percent, over the prior quarter which was driven by the increase in FHLB advances which supplemented the liquidity needs during the current quarter.  The current quarter interest expense increased $3.0 million, or 32 percent, from the prior year second quarter and was primarily due to the increased amount of deposits and borrowings.  The total cost of funding (including non-interest bearing deposits) for the current quarter was 45 basis points compared to 43 basis points for the prior quarter and 36 basis points for the prior year second quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.33 percent compared to 4.34 percent in the prior quarter.  The yield on loans increased 2 basis points and was offset by the 2 basis points increase in funding cost related to the increased short-term borrowings while the cost of core deposits remained unchanged.  The current quarter net interest margin included 5 basis points of discount accretion on acquired loans compared to 6 basis points in the prior quarter.  The current quarter also included 1 basis point from the recovery of interest on loans previously placed on non-accrual compared to 2 basis points in the prior quarter.  Excluding the 5 basis points from discount accretion and 1 basis point from non-accrual interest, the core net interest margin was 4.27 percent compared to 4.26 in the prior quarter and 4.11 percent in the prior year ago second quarter.  The current quarter net interest margin increased 16 basis points over the prior year second quarter net interest margin of 4.17 percent.  The increase in the margin from the prior year second quarter resulted from the remix of earning assets to higher yielding loans and the increased yields on the loan portfolio which more than offset the increase in funding costs.  “The stable net interest margin reflects discipline in loan pricing by each of the Bank divisions,” said Ron Copher, Chief Financial Officer. “In addition, the Bank divisions continue to focus on growing a low-cost core deposit base, especially non-interest bearing deposits.”

Non-interest Income
Non-interest income for the current quarter totaled $30.8 million which was an increase of $2.4 million, or 8 percent, over the prior quarter and a decrease of $994 thousand, or 3 percent, over the same quarter last year.  Service charges and other fees of $20.0 million for the current quarter increased $2.0 million, or 11 percent, from the prior quarter due primarily to seasonality.  Service charges and other fees for the current quarter increased $1.2 million, or 6 percent, from the prior year second quarter which was due to the increased number of accounts driven by organic growth.  Gain on the sale of loans of $7.8 million, increased $2.0 million, or 34 percent, compared to the prior quarter as a result of seasonality.

Non-interest Expense Summary

  Three Months ended   $ Change from
(Dollars in thousands) Jun 30,
2019
  Mar 31,
2019
  Jun 30,
2018
  Mar 31,
2019
  Jun 30,
2018
Compensation and employee benefits $ 51,973     52,728     49,023     (755 )   2,950  
Occupancy and equipment 8,180     8,437     7,662     (257 )   518  
Advertising and promotions 2,767     2,388     2,530     379     237  
Data processing 4,062     3,892     4,241     170     (179 )
Other real estate owned 191     139     211     52     (20 )
Regulatory assessments and insurance 1,848     1,285     1,329     563     519  
Core deposit intangibles amortization 1,865     1,694     1,748     171     117  
Other expenses 15,284     12,267     15,051     3,017     233  
Total non-interest expense $ 86,170     82,830     81,795     3,340     4,375  

Total non-interest expense of $86.2 million for the current quarter increased $3.3 million, or 4 percent, over the prior quarter and increased $4.4 million, or 5 percent, over the prior year second quarter.  Compensation and employee benefits increased by $2.9 million, or 6 percent, from the prior year second quarter due to the acquisition and an increased number of employees driven by organic growth.  Occupancy and equipment expense increased $518 thousand or 7 percent, over the prior year second quarter as a result of the current year acquisition and general cost increases.  Other expenses of $15.3 million, increased $3.0 million, or 25 percent, from the prior quarter and was primarily attributable to acquisition-related expenses.  Acquisition-related expenses were $1.8 million during the current quarter compared to $214 thousand in the prior quarter and $2.9 million in the prior year second quarter.

Federal and State Income Tax Expense
Tax expense during the second quarter of 2019 was $12.6 million, an increase of $901 thousand, or 8 percent, compared to the prior quarter and an increase of $3.1 million, or 33 percent, from the prior year second quarter.  The effective tax rate in the current and prior quarter was 19 percent which compares to 19 percent in the prior quarter and 18 percent in the prior year second quarter.

Efficiency Ratio
The current quarter efficiency ratio was 54.50 percent, an 87 basis points improvement from the prior quarter efficiency ratio of 55.37 percent and was driven by controlling operating costs combined with the increase in net interest income.  The current quarter efficiency ratio improved 94 basis points from the prior year second quarter efficiency ratio of 55.44 percent and was driven by the increase in net interest income that more than offset the increased operating costs as a result of the Company’s growth.


Operating Results for Six Months Ended June 30, 2019
Compared to June 30, 2018

Income Summary

  Six Months ended        
(Dollars in thousands) Jun 30,
2019
  Jun 30,
2018
  $ Change   % Change
Net interest income              
Interest income $ 258,501     $ 220,781     $ 37,720     17 %
Interest expense 22,993     16,935     6,058     36 %
Total net interest income 235,508     203,846     31,662     16 %
Non-interest income              
Service charges and other fees 38,040     35,675     2,365     7 %
Miscellaneous loan fees and charges 2,159     3,720     (1,561 )   (42 )%
Gain on sale of loans 13,560     14,239     (679 )   (5 )%
Loss on sale of investments 347     (389 )   736     (189 )%
Other income 5,202     4,669     533     11 %
Total non-interest income 59,308     57,914     1,394     2 %
  $ 294,816     $ 261,760     $ 33,056     13 %
Net interest margin (tax-equivalent) 4.33 %   4.14 %        

Net Interest Income
Net interest income for the first six months of 2019 increased $31.7 million, or 16 percent, from the first six months of 2018 and was primarily attributable to a $30.2 million increase in interest income from commercial loans.  Interest expense of $23.0 million for the first half of 2019 increased $6.1 million, or 36 percent over the prior year same period as a result of increased deposits and borrowings combined with interest rate increases.  The total funding cost (including non-interest bearing deposits) for 2019 was 44 basis points compared to 36 basis points for 2018.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first six months of 2019 was 4.33 percent, a 19 basis points increase from the net interest margin of 4.14 percent for the first half of 2018.  The increase in the margin was principally due to a shift in earning assets to higher yielding loans along with an increase in yields on the loan portfolio combined with relatively stable cost of funds.

Non-interest Income
Non-interest income of $59.3 million for the first six months of 2019 increased $1.4 million, or 2 percent, over the same period last year.  Service charges and other fees of $38.0 million for 2019 increased $2.4 million, or 7 percent, from the prior year as a result of an increased number of deposit accounts from organic growth and acquisitions.

Non-interest Expense Summary

  Six Months ended        
(Dollars in thousands) Jun 30,
2019
  Jun 30,
 2018
  $ Change   % Change
Compensation and employee benefits $ 104,701     $ 94,744     $ 9,957     11 %
Occupancy and equipment 16,617     14,936     1,681     11 %
Advertising and promotions 5,155     4,700     455     10 %
Data processing 7,954     8,208     (254 )   (3 )%
Other real estate owned 330     283     47     17 %
Regulatory assessments and insurance 3,133     2,535     598     24 %
Core deposit intangibles amortization 3,559     2,804     755     27 %
Other expenses 27,551     27,212     339     1 %
Total non-interest expense $ 169,000     $ 155,422     $ 13,578     9 %

Total non-interest expense of $169 million for the first half of 2019 increased $13.6 million, or 9 percent, over the prior year first half.  Compensation and employee benefits for the first six months of 2019 increased $10.0 million, or 11 percent, from the same period last year due to the increased number of employees from acquisitions and organic growth combined with annual salary increases. Occupancy and equipment expense for the first half of 2019 increased $1.7 million, or 11 percent from the prior year as a result of increased cost from acquisitions and general cost increases.

Provision for Loan Losses
The provision for loan losses was $57 thousand for the first half of 2019, a decrease of $4.7 million from the same period in the prior year.  Net charge-offs during the first half of 2019 were $2.2 million compared to $3.5 million during the same period in 2018.

Federal and State Income Tax Expense
Tax expense of $24.2 million in the first half of 2019 increased $6.4 million, or 36 percent, over the prior year same period.  The effective tax rate year-to-date in 2019 was 19 percent compared to 18 percent in the prior year same period.

Efficiency Ratio
The efficiency ratio of 54.93 percent for the first six months of 2019 improved 161 basis points from the prior year first six months efficiency ratio of 56.54 percent and was driven by the increase in net interest income that more than offset the increased operating costs.

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 Federal Deposit Insurance Corporation and other third parties;
  • legislative or regulatory changes, including increased banking and consumer protection regulation that adversely affect the Company’s business, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
  • ability to complete pending or prospective future acquisitions;
  • 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, July 19, 2019. The conference call will be accessible by telephone and through the internet. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 7382835. To participate on the webcast, log on to: https://edge.media-server.com/m6/p/g6hp4cea. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 7382835 by August 2, 2019.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is the parent company for Glacier Bank, Kalispell, and its bank divisions: First Security Bank of Missoula; Valley Bank of Helena; Western Security Bank, Billings; First Bank of Montana, Lewistown; and First Security Bank, Bozeman, all operating in Montana; as well as Mountain West Bank, Coeur d’Alene, operating in Idaho, Utah and Washington; First Bank, Powell, operating in Wyoming and Utah; Citizens Community Bank, Pocatello, operating in Idaho; Bank of the San Juans, Durango, and Collegiate Peaks Bank, Buena Vista, both operating in Colorado; First State Bank, Wheatland, operating in Wyoming; North Cascades Bank, Chelan, operating in Washington; The Foothills Bank, Yuma, operating in Arizona; and First Community Bank Utah, Layton, operating in Utah.


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition

(Dollars in thousands, except per share data) June 30,
2019
  March 31,
2019
  December 31,
2018
  June 30,
2018
Assets              
Cash on hand and in banks $ 181,526     139,333     161,782     174,239  
Federal funds sold     115          
Interest bearing cash deposits 49,683     63,079     42,008     193,893  
Cash and cash equivalents 231,209     202,527     203,790     368,132  
Debt securities, available-for-sale 2,470,634     2,522,322     2,571,663     2,177,352  
Debt securities, held-to-maturity 252,097     255,572     297,915     620,409  
Total debt securities 2,722,731     2,777,894     2,869,578     2,797,761  
Loans held for sale, at fair value 54,711     29,389     33,156     53,788  
Loans receivable 8,841,777     8,326,070     8,287,549     7,948,672  
Allowance for loan and lease losses (129,054 )   (129,786 )   (131,239 )   (131,564 )
Loans receivable, net 8,712,723     8,196,284     8,156,310     7,817,108  
Premises and equipment, net 296,915     277,619     241,528     240,373  
Other real estate owned 7,281     8,125     7,480     13,616  
Accrued interest receivable 58,567     57,367     54,408     55,973  
Deferred tax asset 3,371     12,554     23,564     34,211  
Core deposit intangible, net 54,646     47,548     49,242     52,708  
Goodwill 330,887     289,586     289,586     289,535  
Non-marketable equity securities 23,031     16,435     27,871     26,107  
Bank-owned life insurance 93,543     82,819     82,320     81,379  
Other assets 86,746     75,632     76,651     66,953  
Total assets $ 12,676,361     12,073,779     12,115,484     11,897,644  
Liabilities              
Non-interest bearing deposits $ 3,265,077     3,051,119     3,001,178     2,914,885  
Interest bearing deposits 6,589,798     6,536,996     6,492,589     6,508,690  
Securities sold under agreements to repurchase 494,651     489,620     396,151     361,515  
FHLB advances 319,996     154,683     440,175     395,037  
Other borrowed funds 14,765     14,738     14,708     9,917  
Subordinated debentures 139,912     134,048     134,051     134,058  
Accrued interest payable 5,091     4,709     4,252     3,952  
Other liabilities 159,695     137,016     116,526     95,598  
Total liabilities 10,988,985     10,522,929     10,599,630     10,423,652  
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 866     846     845     845  
Paid-in capital 1,139,289     1,051,299     1,051,253     1,049,724  
Retained earnings - substantially restricted 503,773     474,818     473,183     443,705  
Accumulated other comprehensive income (loss) 43,448     23,887     (9,427 )   (20,282 )
Total stockholders’ equity 1,687,376     1,550,850     1,515,854     1,473,992  
Total liabilities and stockholders’ equity $ 12,676,361     12,073,779     12,115,484     11,897,644  


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

  Three Months ended   Six Months ended
(Dollars in thousands, except per share data) June 30,
2019
  March 31,
2019
  June 30,
2018
  June 30,
2019
  June 30,
2018
Interest Income                  
Debt securities $ 21,892     21,351     22,370     43,243     42,512  
Residential real estate loans 11,410     10,779     10,149     22,189     18,934  
Commercial loans 88,043     83,539     75,824     171,582     141,339  
Consumer and other loans 11,040     10,447     9,372     21,487     17,996  
Total interest income 132,385     126,116     117,715     258,501     220,781  
Interest Expense                  
Deposits 5,624     5,341     4,617     10,965     8,533  
Securities sold under agreements to repurchase 886     802     486     1,688     971  
Federal Home Loan Bank advances 3,847     3,055     2,513     6,902     4,602  
Other borrowed funds 38     38     26     76     42  
Subordinated debentures 1,694     1,668     1,519     3,362     2,787  
Total interest expense 12,089     10,904     9,161     22,993     16,935  
Net Interest Income 120,296     115,212     108,554     235,508     203,846  
Provision for loan losses     57     4,718     57     5,513  
Net interest income after provision for loan losses 120,296     115,155     103,836     235,451     198,333  
Non-Interest Income                  
Service charges and other fees 20,025     18,015     18,804     38,040     35,675  
Miscellaneous loan fees and charges 1,192     967     2,243     2,159     3,720  
Gain on sale of loans 7,762     5,798     8,142     13,560     14,239  
Gain (loss) on sale of debt securities 134     213     (56 )   347     (389 )
Other income 1,721     3,481     2,695     5,202     4,669  
Total non-interest income 30,834     28,474     31,828     59,308     57,914  
Non-Interest Expense                  
Compensation and employee benefits 51,973     52,728     49,023     104,701     94,744  
Occupancy and equipment 8,180     8,437     7,662     16,617     14,936  
Advertising and promotions 2,767     2,388     2,530     5,155     4,700  
Data processing 4,062     3,892     4,241     7,954     8,208  
Other real estate owned 191     139     211     330     283  
Regulatory assessments and insurance 1,848     1,285     1,329     3,133     2,535  
Core deposit intangibles amortization 1,865     1,694     1,748     3,559     2,804  
Other expenses 15,284     12,267     15,051     27,551     27,212  
Total non-interest expense 86,170     82,830     81,795     169,000     155,422  
Income Before Income Taxes 64,960     60,799     53,869     125,759     100,825  
Federal and state income tax expense 12,568     11,667     9,485     24,235     17,882  
Net Income $ 52,392     49,132     44,384     101,524     82,943  


Glacier Bancorp, Inc.
Average Balance Sheets

  Three Months ended
 
  6/30/2019   3/31/2019
(Dollars in thousands)
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 938,467     $ 11,410     4.86 %   $ 917,324     $ 10,779     4.70 %
Commercial loans 1 6,803,541     89,191     5.26 %   6,524,190     84,613     5.26 %
Consumer and other loans 868,733     11,040     5.10 %   839,011     10,447     5.05 %
Total loans 2 8,610,741     111,641     5.20 %   8,280,525     105,839     5.18 %
Tax-exempt debt securities 3 957,177     9,982     4.17 %   960,569     9,950     4.14 %
Taxable debt securities 4 1,911,173     14,246     2.98 %   1,845,677     13,729     2.98 %
Total earning assets 11,479,091     135,869     4.75 %   11,086,771     129,518     4.74 %
Goodwill and intangibles 351,466             337,963          
Non-earning assets 584,459             520,353          
Total assets $ 12,415,016             $ 11,945,087          
Liabilities                      
Non-interest bearing deposits $ 3,084,404     $     %   $ 2,943,770     $     %
NOW and DDA accounts 2,394,505     985     0.17 %   2,320,928     961     0.17 %
Savings accounts 1,389,548     253     0.07 %   1,359,807     234     0.07 %
Money market deposit accounts 1,662,545     1,125     0.27 %   1,690,305     1,010     0.24 %
Certificate accounts 902,134     2,222     0.99 %   905,005     2,014     0.90 %
Total core deposits 9,433,136     4,585     0.19 %   9,219,815     4,219     0.19 %
Wholesale deposits 5 162,495     1,039     2.56 %   169,361     1,122     2.69 %
FHLB advances 476,204     3,847     3.20 %   352,773     3,055     3.46 %
Repurchase agreements and  other borrowed funds 593,990     2,618     1.77 %   556,325     2,508     1.83 %
Total funding liabilities 10,665,825     12,089     0.45 %   10,298,274     10,904     0.43 %
Other liabilities 109,480             116,143          
Total liabilities 10,775,305             10,414,417          
Stockholders’ Equity                      
Common stock 860             846          
Paid-in capital 1,110,138             1,051,261          
Retained earnings 500,015             471,626          
Accumulated other comprehensive income 28,698             6,937          
Total stockholders’ equity 1,639,711             1,530,670          
Total liabilities and stockholders’ equity $ 12,415,016             $ 11,945,087          
Net interest income (tax-equivalent)     $ 123,780             $ 118,614      
Net interest spread (tax-equivalent)         4.30 %           4.31 %
Net interest margin (tax-equivalent)         4.33 %           4.34 %

______________________________

1    Includes tax effect of $1.1 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2019 and March 31, 2019.
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 $2.1 million and $2.0 million on tax-exempt debt securities income for the three months ended June 30, 2019 and March 31, 2019, respectively.
4    Includes tax effect of $294 thousand and $293 thousand on federal income tax credits for the three months ended June 30, 2019 and March 31, 2019.
5    Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

  Three Months ended
 
  6/30/2019   6/30/2018
(Dollars in thousands)
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 938,467     $ 11,410     4.86 %   $ 874,839     $ 10,149     4.64 %
Commercial loans 1 6,803,541     89,191     5.26 %   6,158,095     76,834     5.00 %
Consumer and other loans 868,733     11,040     5.10 %   761,751     9,372     4.93 %
Total loans 2 8,610,741     111,641     5.20 %   7,794,685     96,355     4.96 %
Tax-exempt debt securities 3 957,177     9,982     4.17 %   1,085,520     12,634     4.66 %
Taxable debt securities 4 1,911,173     14,246     2.98 %   1,931,846     12,630     2.62 %
Total earning assets 11,479,091     135,869     4.75 %   10,812,051     121,619     4.51 %
Goodwill and intangibles 351,466             343,201          
Non-earning assets 584,459             473,750          
Total assets $ 12,415,016             $ 11,629,002          
Liabilities                      
Non-interest bearing deposits $ 3,084,404     $     %   $ 2,800,719     $     %
NOW and DDA accounts 2,394,505     985     0.17 %   2,316,927     1,009     0.17 %
Savings accounts 1,389,548     253     0.07 %   1,319,966     231     0.07 %
Money market deposit accounts 1,662,545     1,125     0.27 %   1,746,960     856     0.20 %
Certificate accounts 902,134     2,222     0.99 %   941,099     1,592     0.68 %
Total core deposits 9,433,136     4,585     0.19 %   9,125,671     3,688     0.16 %
Wholesale deposits 5 162,495     1,039     2.56 %   153,127     929     2.43 %
FHLB advances 476,204     3,847     3.20 %   290,391     2,513     3.42 %
Repurchase agreements and  other borrowed funds 593,990     2,618     1.77 %   510,636     2,031     1.60 %
Total funding liabilities 10,665,825     12,089     0.45 %   10,079,825     9,161     0.36 %
Other liabilities 109,480             74,600          
Total liabilities 10,775,305             10,154,425          
Stockholders’ Equity                      
Common stock 860             845          
Paid-in capital 1,110,138             1,049,270          
Retained earnings 500,015             443,607          
Accumulated other comprehensive  income (loss) 28,698             (19,145 )        
Total stockholders’ equity 1,639,711             1,474,577          
Total liabilities and stockholders’ equity $ 12,415,016             $ 11,629,002          
Net interest income (tax-equivalent)     $ 123,780             $ 112,458      
Net interest spread (tax-equivalent)         4.30 %           4.15 %
Net interest margin (tax-equivalent)         4.33 %           4.17 %

______________________________

1    Includes tax effect of $1.1 million and $1.0 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2019 and 2018, 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 $2.0 million and $2.6 million on tax-exempt debt securities income for the three months ended June 30, 2019 and 2018, respectively.
4    Includes tax effect of $294 thousand and $305 thousand on federal income tax credits for the three months ended June 30, 2019 and 2018.
5    Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

  Six Months ended
 
  6/30/2019   6/30/2018
(Dollars in thousands)
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 927,953     $ 22,189     4.78 %   $ 829,579     $ 18,934     4.56 %
Commercial loans 1 6,664,637     173,804     5.26 %   5,856,533     143,308     4.93 %
Consumer and other loans 853,954     21,487     5.07 %   740,569     17,996     4.90 %
Total loans 2 8,446,544     217,480     5.19 %   7,426,681     180,238     4.89 %
Tax-exempt debt securities 3 958,864     19,932     4.16 %   1,089,605     25,429     4.67 %
Taxable debt securities 4 1,878,606     27,975     2.98 %   1,793,849     22,902     2.55 %
Total earning assets 11,284,014     265,387     4.74 %   10,310,135     228,569     4.47 %
Goodwill and intangibles 344,752             281,673          
Non-earning assets 552,583             432,533          
Total assets $ 12,181,349             $ 11,024,341          
Liabilities                      
Non-interest bearing deposits $ 3,014,476     $     %   $ 2,637,342     $     %
NOW and DDA accounts 2,357,920     1,946     0.17 %   2,165,039     1,827     0.17 %
Savings accounts 1,374,759     487     0.07 %   1,252,760     423     0.07 %
Money market deposit accounts 1,676,348     2,135     0.26 %   1,689,730     1,576     0.19 %
Certificate accounts 903,562     4,236     0.95 %   908,940     2,911     0.65 %
Total core deposits 9,327,065     8,804     0.19 %   8,653,811     6,737     0.16 %
Wholesale deposits 5 165,909     2,161     2.63 %   151,362     1,796     2.39 %
FHLB advances 414,830     6,902     3.31 %   257,800     4,602     3.55 %
Repurchase agreements and  other borrowed funds 575,262     5,126     1.80 %   516,108     3,800     1.48 %
Total funding liabilities 10,483,066     22,993     0.44 %   9,579,081     16,935     0.36 %
Other liabilities 112,793             50,421          
Total liabilities 10,595,859             9,629,502          
Stockholders’ Equity                      
Common stock 853             827          
Paid-in capital 1,080,861             978,046          
Retained earnings 485,898             432,143          
Accumulated other comprehensive  income (loss) 17,878             (16,177 )        
Total stockholders’ equity 1,585,490             1,394,839          
Total liabilities and stockholders’ equity $ 12,181,349             $ 11,024,341          
Net interest income (tax-equivalent)     $ 242,394             $ 211,634      
Net interest spread (tax-equivalent)         4.30 %           4.11 %
Net interest margin (tax-equivalent)         4.33 %           4.14 %

______________________________

1    Includes tax effect of $2.2 million and $2.0 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2019 and 2018, 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 $4.1 million and $5.2 million on tax-exempt investment securities income for the six months ended June 30, 2019 and 2018, respectively.
4    Includes tax effect of $587 thousand and $609 thousand on federal income tax credits for the six months ended June 30, 2019 and 2018, 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) Jun 30,
2019
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
Custom and owner occupied construction $ 140,186     $ 126,820     $ 126,595     $ 138,171     11 %   11 %   1 %
Pre-sold and spec construction 171,464     135,137     121,938     96,008     27 %   41 %   79 %
Total residential construction 311,650     261,957     248,533     234,179     19 %   25 %   33 %
Land development 120,052     126,417     137,814     108,641     (5 )%   (13 )%   11 %
Consumer land or lots 128,544     125,818     127,775     110,846     2 %   1 %   16 %
Unimproved land 74,244     75,113     83,579     72,150     (1 )%   (11 )%   3 %
Developed lots for operative builders 14,117     16,171     17,061     12,708     (13 )%   (17 )%   11 %
Commercial lots 57,447     35,511     34,096     27,661     62 %   68 %   108 %
Other construction 453,782     454,965     520,005     478,037     %   (13 )%   (5 )%
Total land, lot, and other construction 848,186     833,995     920,330     810,043     2 %   (8 )%   5 %
Owner occupied 1,418,190     1,367,530     1,343,563     1,302,737     4 %   6 %   9 %
Non-owner occupied 1,780,988     1,662,390     1,605,960     1,495,532     7 %   11 %   19 %
Total commercial real estate 3,199,178     3,029,920     2,949,523     2,798,269     6 %   8 %   14 %
Commercial and industrial 1,024,828     922,124     907,340     909,688     11 %   13 %   13 %
Agriculture 697,893     641,146     646,822     661,218     9 %   8 %   6 %
1st lien 1,154,221     1,102,920     1,108,227     1,072,917     5 %   4 %   8 %
Junior lien 53,055     54,964     56,689     64,821     (3 )%   (6 )%   (18 )%
Total 1-4 family 1,207,276     1,157,884     1,164,916     1,137,738     4 %   4 %   6 %
Multifamily residential 278,539     268,156     247,457     218,061     4 %   13 %   28 %
Home equity lines of credit 592,355     557,895     539,938     500,036     6 %   10 %   18 %
Other consumer 167,964     163,568     165,865     164,288     3 %   1 %   2 %
Total consumer 760,319     721,463     705,803     664,324     5 %   8 %   14 %
States and political subdivisions 454,085     398,848     404,671     419,025     14 %   12 %   8 %
Other 114,534     119,966     125,310     149,915     (5 )%   (9 )%   (24 )%
Total loans receivable, including  loans held for sale 8,896,488     8,355,459     8,320,705     8,002,460     6 %   7 %   11 %
Less loans held for sale 1 (54,711 )   (29,389 )   (33,156 )   (53,788 )   86 %   65 %   2 %
Total loans receivable $ 8,841,777     $ 8,326,070     $ 8,287,549     $ 7,948,672     6 %   7 %   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-
Accrual
Loans
  Accruing
Loans 90
Days
or More Past 
Due
  Other
Real Estate
Owned
(Dollars in thousands) Jun 30,
2019
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
  Jun 30,
2019
  Jun 30,
2019
  Jun 30,
2019
Custom and owner occupied construction $ 283             48         283      
Pre-sold and spec construction 1,261     456     463     492     1,261          
Total residential construction 1,544     456     463     540     1,261     283      
Land development 1,272     2,272     2,166     7,564     672         600  
Consumer land or lots 1,075     1,126     1,428     1,593     615         460  
Unimproved land 8,864     9,222     9,338     9,962     7,332         1,532  
Developed lots for operative builders     67     68     126              
Commercial lots 575     663     1,046     1,059             575  
Other construction 241     111     120     155         131     110  
Total land, lot and other construction 12,027     13,461     14,166     20,459     8,619     131     3,277  
Owner occupied 6,998     7,229     5,940     12,891     5,207     219     1,572  
Non-owner occupied 7,198     7,368     10,567     15,337     7,198          
Total commercial real estate 14,196     14,597     16,507     28,228     12,405     219     1,572  
Commercial and industrial 5,690     3,893     3,914     7,692     5,358     118     214  
Agriculture 4,228     4,488     7,040     10,497     3,192     886     150  
1st lien 10,211     10,279     10,290     9,725     7,077     1,383     1,751  
Junior lien 592     582     565     3,257     520         72  
Total 1-4 family 10,803     10,861     10,855     12,982     7,597     1,383     1,823  
Multifamily residential             634              
Home equity lines of credit 2,474     2,288     2,770     3,112     2,104     182     188  
Other consumer 597     453     456     393     352     188     57  
Total consumer 3,071     2,741     3,226     3,505     2,456     370     245  
Other 380     348     579         307     73      
Total $ 51,939     50,845     56,750     84,537     41,195     3,463     7,281  

Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)

  Accruing 30-89 Days Delinquent Loans,  by Loan Type   % Change from
(Dollars in thousands) Jun 30,
2019
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
Custom and owner occupied construction $ 49     $ 282     $ 1,661     $ 1,525     (83 )%   (97 )%   (97 )%
Pre-sold and spec construction 219     553     887     721     (60 )%   (75 )%   (70 )%
Total residential construction 268     835     2,548     2,246     (68 )%   (89 )%   (88 )%
Land development 1,990         228     728     n/m   773 %   173 %
Consumer land or lots 206     510     200     471     (60 )%   3 %   (56 )%
Unimproved land 658     685     579     1,450     (4 )%   14 %   (55 )%
Developed lots for operative builders     4     122         (100 )%   (100 )%   n/m
Commercial lots     331     203         (100 )%   (100 )%   n/m
Other construction     1,234     4,170         (100 )%   (100 )%   n/m
Total land, lot and other construction 2,854     2,764     5,502     2,649     3 %   (48 )%   8 %
Owner occupied 5,322     4,463     2,981     3,571     19 %   79 %   49 %
Non-owner occupied 11,700     6,604     1,245     8,414     77 %   840 %   39 %
Total commercial real estate 17,022     11,067     4,226     11,985     54 %   303 %   42 %
Commercial and industrial 3,006     4,070     3,374     5,745     (26 )%   (11 )%   (48 )%
Agriculture 3,125     5,709     6,455     5,288     (45 )%   (52 )%   (41 )%
1st lien 2,776     7,179     5,384     5,132     (61 )%   (48 )%   (46 )%
Junior lien 1,302     583     118     989     123 %   1,003 %   32 %
Total 1-4 family 4,078     7,762     5,502     6,121     (47 )%   (26 )%   (33 )%
Multifamily Residential 1,598                 n/m   n/m   n/m
Home equity lines of credit 3,931     2,925     3,562     3,940     34 %   10 %   %
Other consumer 1,683     1,357     1,650     1,665     24 %   2 %   1 %
Total consumer 5,614     4,282     5,212     5,605     31 %   8 %   %
States and political subdivisions         229         n/m   (100 )%   n/m
Other 372     405     519     11     (8 )%   (28 )%   3,282 %
Total $ 37,937     $ 36,894     $ 33,567     $ 39,650     3 %   13 %   (4 )%

______________________________

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) Jun 30,
2019
  Mar 31,
2019
  Dec 31,
2018
  Jun 30,
2018
  Jun 30,
2019
  Jun 30,
2019
Pre-sold and spec construction $ (6 )   (4 )   (352 )   (344 )       6  
Land development 15     23     (116 )   (107 )   42     27  
Consumer land or lots (2 )   (20 )   (146 )   (92 )   37     39  
Unimproved land (54 )   (9 )   (445 )   (144 )       54  
Developed lots for operative builders (18 )       33     33         18  
Commercial lots (3 )   (2 )   1     4         3  
Other construction (32 )       (19 )       9     41  
Total land, lot and other construction (94 )   (8 )   (692 )   (306 )   88     182  
Owner occupied 139     75     1,320     1,000     226     87  
Non-owner occupied 7     30     853     (4 )   130     123  
Total commercial real estate 146     105     2,173     996     356     210  
Commercial and industrial 37     (4 )   2,449     1,471     555     518  
Agriculture (32 )   14     16     44     67     99  
1st lien 56     198     577     (193 )   298     242  
Junior lien (222 )   (52 )   (371 )   (34 )   29     251  
Total 1-4 family (166 )   146     206     (227 )   327     493  
Multifamily residential         (649 )   (6 )        
Home equity lines of credit (11 )   (5 )   (97 )   (38 )   13     24  
Other consumer 313     223     261     111     470     157  
Total consumer 302     218     164     73     483     181  
Other 2,055     1,043     4,967     1,816     4,324     2,269  
Total $ 2,242     1,510     8,282     3,517     6,200     3,958  

Visit our website at www.glacierbancorp.com 

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

 

 

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