(MENAFN- GlobeNewsWire - Nasdaq) itemprop="articleBody">1st Quarter 2019 Highlights:
Net income of $49.1 million for the current quarter, an increase of $10.5 million, or 27 percent, over the prior year first quarter net income of $38.6 million. Current quarter diluted earnings per share of $0.58, an increase of 21 percent from the prior year first quarter diluted earnings per share of $0.48. Current quarter loan growth was $38.5 million, or 2 percent annualized. Core deposits grew $70.1 million, or 3 percent annualized, during the current quarter with non-interest bearing deposit growth of $49.9 million, or 7 percent annualized. Continued credit quality improvement with non-performing assets declining $5.9 million, or 10 percent from the prior quarter. Net interest margin of 4.34 percent as a percentage of earning assets, on a tax equivalent basis, a 4 basis points increase over the prior quarter, and a 24 basis points increase over the prior year first quarter net interest margin of 4.10 percent. Declared and paid a quarterly dividend of $0.26 per share. The dividend was the 136th consecutive quarterly dividend declared by the Company. On January 16, 2019, the Company announced the signing of a definitive agreement to acquire FNB Bancorp, the holding company for The First National Bank of Layton, a community bank based in Layton, Utah, with total assets of $335 million. On April 3, 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, with total assets of $830 million. Financial Highlights
At or for the Three Months ended
(Dollars in thousands, except per share and market data) Mar 31,
2019 Dec 31,
2018 Mar 31,
2018
Operating results
Net income $ 49,132 49,599 38,559
Basic earnings per share $ 0.58 0.59 0.48
Diluted earnings per share $ 0.58 0.59 0.48
Dividends declared per share 1 $ 0.26 0.56 0.23
Market value per share
Closing $ 40.07 39.62 38.38
High $ 45.47 47.67 41.24
Low $ 37.58 36.84 36.72
Selected ratios and other data
Number of common stock shares outstanding 84,588,199 84,521,692 84,511,472
Average outstanding shares - basic 84,549,974 84,521,640 80,808,904
Average outstanding shares - diluted 84,614,248 84,610,018 80,887,135
Return on average assets (annualized) 1.67 % 1.66 % 1.50 %
Return on average equity (annualized) 13.02 % 13.08 % 11.90 %
Efficiency ratio 55.37 % 53.93 % 57.80 %
Dividend payout ratio 1 44.83 % 94.92 % 47.92 %
Loan to deposit ratio 87.14 % 87.64 % 81.83 %
Number of full time equivalent employees 2,634 2,623 2,545
Number of locations 169 167 166
Number of ATMs 222 222 223
______________________________
1 Includes a special dividend declared of $0.30 per share for the three months ended December 31, 2018.
KALISPELL, Mont., April 18, 2019 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ: GBCI ) reported net income of $49.1 million for the current quarter, an increase of $10.5 million, or 27 percent, from the $38.6 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.58 per share, an increase of 21 percent from the prior year first quarter diluted earnings per share of $0.48. Included in the current quarter was $214 thousand of acquisition-related expenses. 'The Glacier team delivered a great first quarter with solid business performance and the announcement of two acquisitions totaling over $1.1 billion in assets. We continue to selectively grow the business and are pleased to see the continued improvement in our credit quality,' said Randy Chesler, President and Chief Executive Officer. 'We are all very excited about the prospect of First National Bank of Layton and Heritage Bank joining the Glacier family.'
On January 16, 2019, the Company announced the signing of a definitive agreement to acquire FNB Bancorp, the holding company for The First National Bank of Layton, a community bank based in Layton, Utah (collectively, 'FNB'). FNB provides banking services to individuals and businesses throughout Utah with six banking offices located in Layton, Bountiful, Clearfield, and Draper. As of December 31, 2018, FNB had total assets of $335 million, total loans of $243 million and total deposits of $285 million. The acquisition has received the required regulatory approvals, is subject to other customary conditions of closing and is expected to be completed during the second quarter of 2019. Upon closing of the transaction, FNB will become the Company's fifteenth Bank Division.
On April 3, 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 December 31, 2018, Heritage had total assets of $830 million, total loans of $596 million and total deposits of $720 million. The acquisition is subject to required regulatory approvals and other customary conditions of closing and is expected to be completed during the third quarter of 2019. Upon closing of the transaction, Heritage will become the Company's sixteenth Bank Division.
Asset Summary
$ Change from
(Dollars in thousands) Mar 31,
2019 Dec 31,
2018 Mar 31,
2018 Dec 31,
2018 Mar 31,
2018
Cash and cash equivalents $ 202,527 203,790 451,048 (1,263 ) (248,521 )
Debt securities, available-for-sale 2,522,322 2,571,663 2,154,845 (49,341 ) 367,477
Debt securities, held-to-maturity 255,572 297,915 634,413 (42,343 ) (378,841 )
Total debt securities 2,777,894 2,869,578 2,789,258 (91,684 ) (11,364 )
Loans receivable
Residential real estate 884,732 887,742 831,021 (3,010 ) 53,711
Commercial real estate 4,686,082 4,657,561 4,251,003 28,521 435,079
Other commercial 1,909,452 1,911,171 1,839,293 (1,719 ) 70,159
Home equity 562,381 544,688 489,879 17,693 72,502
Other consumer 283,423 286,387 258,834 (2,964 ) 24,589
Loans receivable 8,326,070 8,287,549 7,670,030 38,521 656,040
Allowance for loan and lease losses (129,786 ) (131,239 ) (127,608 ) 1,453 (2,178 )
Loans receivable, net 8,196,284 8,156,310 7,542,422 39,974 653,862
Other assets 897,074 885,806 876,050 11,268 21,024
Total assets $ 12,073,779 12,115,484 11,658,778 (41,705 ) 415,001
Total debt securities of $2.778 billion at March 31, 2019 decreased $91.7 million, or 3 percent, during the current quarter and decreased $11.4 million, or 41 basis points, from the prior year first quarter. Debt securities represented 23 percent of total assets at March 31, 2019 compared to 24 percent of total assets at December 31, 2018 and March 31, 2018. The loan portfolio of $8.326 billion increased $38.5 million, or 2 percent annualized, during the current quarter. The loan category with the largest dollar increase was commercial real estate loans which increased $28.5 million, or 61 basis points. The loan category with the largest percentage increase was home equity loans which increased $17.7 million, or 3 percent. The loan portfolio increased $656 million, or 9 percent, since March 31, 2018, with the largest increase in commercial real estate loans, which increased $435 million, or 10 percent.
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,
2019 Dec 31,
2018 Mar 31,
2018
Allowance for loan and lease losses
Balance at beginning of period $ 131,239 129,568 129,568
Provision for loan losses 57 9,953 795
Charge-offs (3,341 ) (17,807 ) (5,007 )
Recoveries 1,831 9,525 2,252
Balance at end of period $ 129,786 131,239 127,608
Other real estate owned $ 8,125 7,480 14,132
Accruing loans 90 days or more past due 2,451 2,018 5,402
Non-accrual loans 40,269 47,252 54,449
Total non-performing assets $ 50,845 56,750 73,983
Non-performing assets as a percentage of subsidiary assets 0.42 % 0.47 % 0.64 %
Allowance for loan and lease losses as a percentage of non-performing loans 304 % 266 % 213 %
Allowance for loan and lease losses as a percentage of total loans 1.56 % 1.58 % 1.66 %
Net charge-offs as a percentage of total loans 0.02 % 0.10 % 0.04 %
Accruing loans 30-89 days past due $ 36,894 33,567 44,963
Accruing troubled debt restructurings $ 24,468 25,833 41,649
Non-accrual troubled debt restructurings $ 6,747 10,660 13,289
U.S. government guarantees included in non-performing assets $ 2,649 4,811 4,548
The current quarter had continued improvement in non-performing assets which ended the current quarter at $50.8 million, which was a decrease of $5.9 million, or 10 percent, from the prior quarter and a decrease of $23.1 million, or 31 percent, from the prior year first quarter. Non-performing assets as a percentage of subsidiary assets at March 31, 2019 was 0.42 percent, a decrease of 5 basis points from the prior quarter, and a decrease of 22 basis points from the prior year first quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $36.9 million at March 31, 2019 increased $3.3 million from prior quarter and decreased $8.1 million from prior year first quarter. Early stage delinquencies as a percentage of loans at March 31, 2019 was 0.44 percent, which was an increase of 3 basis points from prior quarter and was a decrease of 15 basis points from prior year first quarter. The allowance for loan and lease losses ('allowance') as a percent of total loans outstanding at March 31, 2019 was 1.56 percent, which was a 2 basis points decrease compared to the prior quarter and a decrease of 10 basis points from a year ago with such decreases reflective of the stabilizing credit quality.
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
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 %
Second quarter 2017 3,013 2,362 2.05 % 0.49 % 0.70 %
Net charge-offs for the current quarter were $1.5 million compared to $2.5 million for the prior quarter and $2.8 million from the same quarter last year. Current quarter provision for loan losses was $57 thousand, compared to $1.2 million in the prior quarter and $795 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,
2019 Dec 31,
2018 Mar 31,
2018 Dec 31,
2018 Mar 31,
2018
Deposits
Non-interest bearing deposits $ 3,051,119 3,001,178 2,811,469 49,941 239,650
NOW and DDA accounts 2,383,806 2,391,307 2,400,693 (7,501 ) (16,887 )
Savings accounts 1,373,544 1,346,790 1,328,047 26,754 45,497
Money market deposit accounts 1,689,962 1,684,284 1,778,068 5,678 (88,106 )
Certificate accounts 896,731 901,484 955,105 (4,753 ) (58,374 )
Core deposits, total 9,395,162 9,325,043 9,273,382 70,119 121,780
Wholesale deposits 192,953 168,724 145,463 24,229 47,490
Deposits, total 9,588,115 9,493,767 9,418,845 94,348 169,270
Repurchase agreements 489,620 396,151 395,794 93,469 93,826
Federal Home Loan Bank advances 154,683 440,175 155,057 (285,492 ) (374 )
Other borrowed funds 14,738 14,708 8,204 30 6,534
Subordinated debentures 134,048 134,051 134,061 (3 ) (13 )
Other liabilities 141,725 120,778 92,793 20,947 48,932
Total liabilities $ 10,522,929 10,599,630 10,204,754 (76,701 ) 318,175
Core deposits of $9.395 billion as of March 31, 2019 increased $70.1 million, or 3 percent annualized, from the prior quarter and increased $122 million, or 1 percent, from the prior year first quarter. Non-interest bearing deposits increased $49.9 million, or 2 percent, over the prior quarter and increased $240 million, or 9 percent, over the prior year first quarter. Federal Home Loan Bank ('FHLB') advances of $155 million at March 31, 2019, decreased $285 million over the prior quarter and was stable over the prior year first quarter. FHLB advances and wholesale deposits will continue to fluctuate to supplement liquidity needs as necessary during the year.
Stockholders' Equity Summary
$ Change from
(Dollars in thousands, except per share data) Mar 31,
2019 Dec 31,
2018 Mar 31,
2018 Dec 31,
2018 Mar 31,
2018
Common equity $ 1,526,963 1,525,281 1,471,047 1,682 55,916
Accumulated other comprehensive income (loss) 23,887 (9,427 ) (17,023 ) 33,314 40,910
Total stockholders' equity 1,550,850 1,515,854 1,454,024 34,996 96,826
Goodwill and core deposit intangible, net (337,134 ) (338,828 ) (343,991 ) 1,694 6,857
Tangible stockholders' equity $ 1,213,716 1,177,026 1,110,033 36,690 103,683
Stockholders' equity to total assets 12.84 % 12.51 % 12.47 %
Tangible stockholders' equity to total tangible assets 10.34 % 9.99 % 9.81 %
Book value per common share $ 18.33 17.93 17.21 0.40 1.12
Tangible book value per common share $ 14.35 13.93 13.13 0.42 1.22
Tangible stockholders' equity of $1.214 billion at March 31, 2019 increased $36.7 million compared to the prior quarter which was primarily the result of an increase in other comprehensive income and earnings retention, which was partially offset by a decrease of $25.5 million from the cumulative-effect adjustments related to the adoption of new accounting standards. Tangible stockholders' equity increased $104 million over the prior year first quarter which was the result of earnings retention and an increase in other comprehensive income, which was partially offset by the adoption of the accounting standards. Tangible book value per common share at quarter end increased $0.42 per share from the prior quarter and increased $1.22 per share from a year ago.
Cash Dividends
On March 27, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend was payable April 18, 2019 to shareholders of record on April 9, 2019. The dividend was the 136th 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 March 31, 2019
Compared to December 31, 2018, and March 31, 2018
Income Summary
Three Months ended $ Change from
(Dollars in thousands) Mar 31,
2019 Dec 31,
2018 Mar 31,
2018 Dec 31,
2018 Mar 31,
2018
Net interest income
Interest income $ 126,116 125,310 103,066 806 23,050
Interest expense 10,904 9,436 7,774 1,468 3,130
Total net interest income 115,212 115,874 95,292 (662 ) 19,920
Non-interest income
Service charges and other fees 18,015 19,708 16,871 (1,693 ) 1,144
Miscellaneous loan fees and charges 967 1,278 1,477 (311 ) (510 )
Gain on sale of loans 5,798 5,639 6,097 159 (299 )
Gain (loss) on sale of investments 213 (357 ) (333 ) 570 546
Other income 3,481 2,226 1,974 1,255 1,507
Total non-interest income 28,474 28,494 26,086 (20 ) 2,388
Total income $ 143,686 144,368 121,378 (682 ) 22,308
Net interest margin (tax-equivalent) 4.34 % 4.30 % 4.10 %
Net Interest Income
The current quarter net interest income of $115 million was stable compared to the prior quarter and increased $19.9 million, or 21 percent, from the prior year first quarter. The increase in net interest income over the prior year first quarter was primarily driven by interest rate increases and an increase in commercial loans. Interest income on commercial loans increased $1.3 million, or 2 percent, from the prior quarter and increased $18.0 million, or 28 percent, from the prior year first quarter.
The current quarter interest expense of $10.9 million increased $1.5 million, or 16 percent, over the prior quarter which was primarily driven by seasonal fluctuations in core deposits, which were supplemented using higher cost borrowings. As deposits increased during the current quarter, FHLB advances were reduced by $285 million to $155 million, the same amount at the end of the prior year first quarter. The current quarter interest expense increased $3.1 million, or 40 percent, from the prior year first quarter and was primarily due to the increased amount of deposits and other funding. The cost of core deposits for the current quarter was 19 basis points compared to 17 basis points for the prior quarter and 15 basis points in the prior year first quarter. The total cost of funding (including non-interest bearing deposits) for the current quarter was 43 basis points compared to 36 basis points for the prior quarter and 35 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 4.34 percent compared to 4.30 percent in the prior quarter. The 4 basis points increase in the net interest margin was primarily the result of increased yields on the loan portfolio. The current quarter net interest margin included 2 basis points from the recovery of interest on loans previously placed on non-accrual. The current quarter net interest margin increased 24 basis points over the prior year first quarter net interest margin of 4.10 percent. The increase in the margin from the prior year first quarter resulted from the remix of earning assets to higher yielding loans, increased yields on the loan portfolio which more than offset the increase in funding costs. 'The current quarter net interest margin expansion reflects the 10 basis points higher yield on earnings assets, while the cost of core deposit funding increased 2 basis points,' said Ron Copher, Chief Financial Officer.
Non-interest Income
Non-interest income for the current quarter totaled $28.5 million which was comparable to the prior quarter and an increase of $2.4 million, or 9 percent, over the same quarter last year. Service charges and other fees of $18.0 million for the current quarter decreased $1.7 million, or 9 percent, from the prior quarter due to seasonality. Service charges and other fees for the current quarter increased $1.1 million, or 7 percent, from the prior year first quarter which was due to the increased number of accounts from organic growth and acquisitions. Other income increased $1.3 million from the prior quarter and increased $1.5 million over the prior year first quarter.
Non-interest Expense Summary
Three Months ended $ Change from
(Dollars in thousands) Mar 31,
2019 Dec 31,
2018 Mar 31,
2018 Dec 31,
2018 Mar 31,
2018
Compensation and employee benefits $ 52,728 50,385 45,721 2,343 7,007
Occupancy and equipment 8,437 7,884 7,274 553 1,163
Advertising and promotions 2,388 2,434 2,170 (46 ) 218
Data processing 3,892 3,951 3,967 (59 ) (75 )
Other real estate owned 139 264 72 (125 ) 67
Regulatory assessments and insurance 1,285 1,263 1,206 22 79
Core deposit intangibles amortization 1,694 1,731 1,056 (37 ) 638
Other expenses 12,267 13,964 12,161 (1,697 ) 106
Total non-interest expense $ 82,830 81,876 73,627 954 9,203
Total non-interest expense of $82.8 million for the current quarter increased $1.0 million, or 1 percent, over the prior quarter and increased $9.2 million, or 13 percent, over the prior year first quarter. Compensation and employee benefits increased by $2.3 million, or 5 percent, from the prior quarter primarily from annual salary increases and benefit adjustments. Compensation and employee benefits increased by $7.0 million, or 15 percent, from the prior year first quarter principally due to the increased number of employees driven by organic growth and the prior year first quarter acquisitions. Occupancy and equipment expense increased $1.2 million, or 16 percent, over the prior year first quarter as a result of the prior year first quarter acquisitions and general cost increases. Other expenses of $12.3 million, decreased $1.7 million, or 12 percent, from the prior quarter which was driven by decreases in several categories including acquisition-related expenses and expenses connected with equity investments in New Market Tax Credit projects. Other expenses increased $106 thousand, or 87 basis points, from the prior year first quarter and included a decrease of $1.6 million in acquisition-related expenses which was offset by a general increase in costs from organic growth and the prior year first quarter acquisitions. Acquisition-related expenses were $214 thousand during the current quarter compared to $520 thousand in the prior quarter and $1.8 million in the prior year first quarter. Federal and State Income Tax Expense
Tax expense during the first quarter of 2019 was $11.7 million, with no change from the prior quarter and an increase of $3.3 million, or 39 percent, from the prior year first quarter. The effective tax rate in the current and prior quarter was 19 percent which compares to 18 percent in the prior year first quarter.
Efficiency Ratio
The current quarter efficiency ratio was 55.37 percent, a 144 basis points increase from the prior quarter efficiency ratio of 53.93 percent and was driven by increased operating costs combined with a slight decrease in net interest income. The current quarter efficiency ratio decreased 243 basis points from the prior year first quarter efficiency ratio of 57.80 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 FederalReserve 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, April 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 4067719. To participate on the webcast, log on to:https://edge.media-server.com/m6/p/hd6quiqa. 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 4067719 by May 3, 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 located 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; and The Foothills Bank, Yuma, operating in Arizona.
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data) March 31,
2019 December 31,
2018 March 31,
2018
Assets
Cash on hand and in banks $ 139,333 161,782 140,625
Federal funds sold 115 — 230
Interest bearing cash deposits 63,079 42,008 310,193
Cash and cash equivalents 202,527 203,790 451,048
Debt securities, available-for-sale 2,522,322 2,571,663 2,154,845
Debt securities, held-to-maturity 255,572 297,915 634,413
Total debt securities 2,777,894 2,869,578 2,789,258
Loans held for sale, at fair value 29,389 33,156 37,058
Loans receivable 8,326,070 8,287,549 7,670,030
Allowance for loan and lease losses (129,786 ) (131,239 ) (127,608 )
Loans receivable, net 8,196,284 8,156,310 7,542,422
Premises and equipment, net 277,619 241,528 238,491
Other real estate owned 8,125 7,480 14,132
Accrued interest receivable 57,367 54,408 54,376
Deferred tax asset 12,554 23,564 32,929
Core deposit intangible, net 47,548 49,242 54,456
Goodwill 289,586 289,586 289,535
Non-marketable equity securities 16,435 27,871 21,910
Bank-owned life insurance 82,819 82,320 81,787
Other assets 75,632 76,651 51,376
Total assets $ 12,073,779 12,115,484 11,658,778
Liabilities
Non-interest bearing deposits $ 3,051,119 3,001,178 2,811,469
Interest bearing deposits 6,536,996 6,492,589 6,607,376
Securities sold under agreements to repurchase 489,620 396,151 395,794
FHLB advances 154,683 440,175 155,057
Other borrowed funds 14,738 14,708 8,204
Subordinated debentures 134,048 134,051 134,061
Accrued interest payable 4,709 4,252 3,740
Other liabilities 137,016 116,526 89,053
Total liabilities 10,522,929 10,599,630 10,204,754
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 846 845 845
Paid-in capital 1,051,299 1,051,253 1,048,860
Retained earnings - substantially restricted 474,818 473,183 421,342
Accumulated other comprehensive income (loss) 23,887 (9,427 ) (17,023 )
Total stockholders' equity 1,550,850 1,515,854 1,454,024
Total liabilities and stockholders' equity $ 12,073,779 12,115,484 11,658,778
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
Three Months ended
(Dollars in thousands, except per share data) March 31,
2019 December 31,
2018 March 31,
2018
Interest Income
Debt securities $ 21,351 22,016 20,142
Residential real estate loans 10,779 10,751 8,785
Commercial loans 83,539 82,238 65,515
Consumer and other loans 10,447 10,305 8,624
Total interest income 126,116 125,310 103,066
Interest Expense
Deposits 5,341 4,989 3,916
Securities sold under agreements to repurchase 802 707 485
Federal Home Loan Bank advances 3,055 2,146 2,089
Other borrowed funds 38 (10 ) 16
Subordinated debentures 1,668 1,604 1,268
Total interest expense 10,904 9,436 7,774
Net Interest Income 115,212 115,874 95,292
Provision for loan losses 57 1,246 795
Net interest income after provision for loan losses 115,155 114,628 94,497
Non-Interest Income
Service charges and other fees 18,015 19,708 16,871
Miscellaneous loan fees and charges 967 1,278 1,477
Gain on sale of loans 5,798 5,639 6,097
Gain (loss) on sale of debt securities 213 (357 ) (333 )
Other income 3,481 2,226 1,974
Total non-interest income 28,474 28,494 26,086
Non-Interest Expense
Compensation and employee benefits 52,728 50,385 45,721
Occupancy and equipment 8,437 7,884 7,274
Advertising and promotions 2,388 2,434 2,170
Data processing 3,892 3,951 3,967
Other real estate owned 139 264 72
Regulatory assessments and insurance 1,285 1,263 1,206
Core deposit intangibles amortization 1,694 1,731 1,056
Other expenses 12,267 13,964 12,161
Total non-interest expense 82,830 81,876 73,627
Income Before Income Taxes 60,799 61,246 46,956
Federal and state income tax expense 11,667 11,647 8,397
Net Income $ 49,132 49,599 38,559
Glacier Bancorp, Inc.
Average Balance Sheets
Three Months ended
March 31, 2019 March 31, 2018
(Dollars in thousands) Average
Balance Interest &
Dividends Average
Yield/
Rate Average
Balance Interest &
Dividends Average
Yield/
Rate
Assets
Residential real estate loans $ 917,324 $ 10,779 4.70 % $ 783,817 $ 8,785 4.48 %
Commercial loans 1 6,524,190 84,613 5.26 % 5,551,619 66,474 4.86 %
Consumer and other loans 839,011 10,447 5.05 % 719,153 8,624 4.86 %
Total loans 2 8,280,525 105,839 5.18 % 7,054,589 83,883 4.82 %
Tax-exempt debt securities 3 960,569 9,950 4.14 % 1,093,736 12,795 4.68 %
Taxable debt securities 4 1,845,677 13,729 2.98 % 1,654,318 10,273 2.48 %
Total earning assets 11,086,771 129,518 4.74 % 9,802,643 106,951 4.42 %
Goodwill and intangibles 337,963 219,463
Non-earning assets 520,353 390,857
Total assets $ 11,945,087 $ 10,412,963
Liabilities
Non-interest bearing deposits $ 2,943,770 $ — — % $ 2,472,151 $ — — %
NOW and DDA accounts 2,320,928 961 0.17 % 2,011,464 818 0.16 %
Savings accounts 1,359,807 234 0.07 % 1,184,807 193 0.07 %
Money market deposit accounts 1,690,305 1,010 0.24 % 1,631,863 719 0.18 %
Certificate accounts 905,005 2,014 0.90 % 876,425 1,319 0.61 %
Total core deposits 9,219,815 4,219 0.19 % 8,176,710 3,049 0.15 %
Wholesale deposits 5 169,361 1,122 2.69 % 149,577 867 2.35 %
FHLB advances 352,773 3,055 3.46 % 224,847 2,089 3.72 %
Repurchase agreements and other borrowed funds 556,325 2,508 1.83 % 521,641 1,769 1.38 %
Total funding liabilities 10,298,274 10,904 0.43 % 9,072,775 7,774 0.35 %
Other liabilities 116,143 25,973
Total liabilities 10,414,417 9,098,748
Stockholders' Equity
Common stock 846 808
Paid-in capital 1,051,261 906,030
Retained earnings 471,626 420,552
Accumulated other comprehensive loss 6,937 (13,175 )
Total stockholders' equity 1,530,670 1,314,215
Total liabilities and stockholders' equity $ 11,945,087 $ 10,412,963
Net interest income (tax-equivalent) $ 118,614 $ 99,177
Net interest spread (tax-equivalent) 4.31 % 4.07 %
Net interest margin (tax-equivalent) 4.34 % 4.10 %
______________________________
1 Includes tax effect of $1.1 million and $959 thousand on tax-exempt municipal loan and lease income for the three months ended March 31, 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 March 31, 2019 and 2018, respectively.
4 Includes tax effect of $293 thousand and $304 thousand on federal income tax credits for the three months ended March 31, 2019 and 2018.
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) Mar 31,
2019 Dec 31,
2018 Mar 31,
2018 Dec 31,
2018 Mar 31,
2018
Custom and owner occupied construction $ 126,820 $ 126,595 $ 140,440 — % (10 )%
Pre-sold and spec construction 135,137 121,938 100,376 11 % 35 %
Total residential construction 261,957 248,533 240,816 5 % 9 %
Land development 126,417 137,814 76,528 (8 )% 65 %
Consumer land or lots 125,818 127,775 119,469 (2 )% 5 %
Unimproved land 75,113 83,579 68,862 (10 )% 9 %
Developed lots for operative builders 16,171 17,061 13,093 (5 )% 24 %
Commercial lots 35,511 34,096 43,232 4 % (18 )%
Other construction 454,965 520,005 420,632 (13 )% 8 %
Total land, lot, and other construction 833,995 920,330 741,816 (9 )% 12 %
Owner occupied 1,367,530 1,343,563 1,292,206 2 % 6 %
Non-owner occupied 1,662,390 1,605,960 1,449,166 4 % 15 %
Total commercial real estate 3,029,920 2,949,523 2,741,372 3 % 11 %
Commercial and industrial 922,124 907,340 865,574 2 % 7 %
Agriculture 641,146 646,822 620,342 (1 )% 3 %
1st lien 1,102,920 1,108,227 1,014,361 — % 9 %
Junior lien 54,964 56,689 66,288 (3 )% (17 )%
Total 1-4 family 1,157,884 1,164,916 1,080,649 (1 )% 7 %
Multifamily residential 268,156 247,457 219,310 8 % 22 %
Home equity lines of credit 557,895 539,938 481,204 3 % 16 %
Other consumer 163,568 165,865 162,171 (1 )% 1 %
Total consumer 721,463 705,803 643,375 2 % 12 %
States and political subdivisions 398,848 404,671 421,252 (1 )% (5 )%
Other 119,966 125,310 132,582 (4 )% (10 )%
Total loans receivable, including loans held for sale 8,355,459 8,320,705 7,707,088 — % 8 %
Less loans held for sale 1 (29,389 ) (33,156 ) (37,058 ) (11 )% (21 )%
Total loans receivable $ 8,326,070 $ 8,287,549 $ 7,670,030 — % 9 %
______________________________
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,
2019 Dec 31,
2018 Mar 31,
2018 Mar 31,
2019 Mar 31,
2019 Mar 31,
2019
Custom and owner occupied construction $ — — 48 — — —
Pre-sold and spec construction 456 463 492 456 — —
Total residential construction 456 463 540 456 — —
Land development 2,272 2,166 7,802 713 — 1,559
Consumer land or lots 1,126 1,428 1,622 635 — 491
Unimproved land 9,222 9,338 10,294 7,648 42 1,532
Developed lots for operative builders 67 68 83 42 — 25
Commercial lots 663 1,046 1,312 — — 663
Other construction 111 120 319 — — 111
Total land, lot and other construction 13,461 14,166 21,432 9,038 42 4,381
Owner occupied 7,229 5,940 12,594 5,953 42 1,234
Non-owner occupied 7,368 10,567 5,346 7,368 — —
Total commercial real estate 14,597 16,507 17,940 13,321 42 1,234
Commercial and industrial 3,893 3,914 6,313 3,602 57 234
Agriculture 4,488 7,040 10,476 3,397 941 150
1st lien 10,279 10,290 8,717 7,198 1,193 1,888
Junior lien 582 565 4,271 512 70 —
Total 1-4 family 10,861 10,855 12,988 7,710 1,263 1,888
Multifamily residential — — 652 — — —
Home equity lines of credit 2,288 2,770 3,312 2,100 — 188
Other consumer 453 456 330 330 73 50
Total consumer 2,741 3,226 3,642 2,430 73 238
Other 348 579 — 315 33 —
Total $ 50,845 56,750 73,983 40,269 2,451 8,125
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,
2019 Dec 31,
2018 Mar 31,
2018 Dec 31,
2018 Mar 31,
2018
Custom and owner occupied construction $ 282 $ 1,661 $ 611 (83 )% (54 )%
Pre-sold and spec construction 553 887 267 (38 )% 107 %
Total residential construction 835 2,548 878 (67 )% (5 )%
Land development — 228 585 (100 )% (100 )%
Consumer land or lots 510 200 485 155 % 5 %
Unimproved land 685 579 889 18 % (23 )%
Developed lots for operative builders 4 122 464 (97 )% (99 )%
Commercial lots 331 203 194 63 % 71 %
Other construction 1,234 4,170 76 (70 )% 1,524 %
Total land, lot and other construction 2,764 5,502 2,693 (50 )% 3 %
Owner occupied 4,463 2,981 13,904 50 % (68 )%
Non-owner occupied 6,604 1,245 3,842 430 % 72 %
Total commercial real estate 11,067 4,226 17,746 162 % (38 )%
Commercial and industrial 4,070 3,374 5,746 21 % (29 )%
Agriculture 5,709 6,455 3,845 (12 )% 48 %
1st lien 7,179 5,384 9,597 33 % (25 )%
Junior lien 583 118 240 394 % 143 %
Total 1-4 family 7,762 5,502 9,837 41 % (21 )%
Home equity lines of credit 2,925 3,562 2,316 (18 )% 26 %
Other consumer 1,357 1,650 1,849 (18 )% (27 )%
Total consumer 4,282 5,212 4,165 (18 )% 3 %
States and political subdivisions — 229 — (100 )% n/m
Other 405 519 53 (22 )% 664 %
Total $ 36,894 $ 33,567 $ 44,963 10 % (18 )%
______________________________
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,
2019 Dec 31,
2018 Mar 31,
2018 Mar 31,
2019 Mar 31,
2019
Pre-sold and spec construction $ (4 ) (352 ) (339 ) — 4
Land development 23 (116 ) (5 ) 42 19
Consumer land or lots (20 ) (146 ) (3 ) 15 35
Unimproved land (9 ) (445 ) (73 ) — 9
Developed lots for operative builders — 33 — — —
Commercial lots (2 ) 1 (2 ) — 2
Other construction — (19 ) — 9 9
Total land, lot and other construction (8 ) (692 ) (83 ) 66 74
Owner occupied 75 1,320 962 118 43
Non-owner occupied 30 853 (47 ) 130 100
Total commercial real estate 105 2,173 915 248 143
Commercial and industrial (4 ) 2,449 1,430 244 248
Agriculture 14 16 (2 ) 17 3
1st lien 198 577 (65 ) 298 100
Junior lien (52 ) (371 ) (29 ) — 52
Total 1-4 family 146 206 (94 ) 298 152
Multifamily residential — (649 ) (6 ) — —
Home equity lines of credit (5 ) (97 ) (32 ) 7 12
Other consumer 223 261 73 305 82
Total consumer 218 164 41 312 94
Other 1,043 4,967 893 2,156 1,113
Total $ 1,510 8,282 2,755 3,341 1,831
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