Saturday, 31 July 2021 10:23 GMT

Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended June 30, 2021


( MENAFN - GlobeNewsWire - Nasdaq 2n)d Quarter 2021 Highlights:

  • Net income of $77.6 million, an increase of $14.2 million, or 22 percent, over the prior year second quarter net income of $63.4 million.
  • Diluted earnings per share of $0.81, an increase of 23 percent from the prior year second quarter diluted earnings per share of $0.66.
  • Total assets crossed $20 billion during the current quarter ending at $20.488 billion at June 30, 2021.
  • The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, increased $249 million, or 10 percent annualized, in the current quarter.
  • Core deposits increased $669 million, or 17 percent annualized, during the current quarter.
  • Early stage delinquencies (accruing loans 30-89 days past due) of $12.1 million at June 30, 2021 decreased $32.5 million from the prior quarter and decreased $13.1 million from the prior year second quarter.
  • An improved economic outlook drove a credit loss benefit of $5.7 million in the current quarter.
  • The Company funded 1,947 new PPP loans for $67.6 million during the current quarter.
  • The Company received $350 million in PPP loan forgiveness from the U.S. Small Business Administration (“SBA”) during the current quarter.
  • Declared a quarterly dividend of $0.32 per share, an increase of $0.01 per share, or 3 percent, over the prior quarter regular dividend. The Company has declared 145 consecutive quarterly dividends and has increased the dividend 48 times.
  • The Company announced the signing of definitive agreement to acquire Altabancorp, the parent company of Altabank, a community bank based in American Fork, Utah, with total assets of $3.522 billion. Altabank, was recently honored with the prestigious Utah Best of State Bank Award in the Community Banking category which marked its second consecutive year for receiving the award. This will be the largest Bank acquisition in the Company's history and its 24th acquisition since 2000.

First Half 2021 Highlights:

  • Net income of $158 million for the first half of 2021, an increase of $51.6 million, or 48 percent, over the prior year first half of 2020 net income of $107 million.
  • Diluted earnings per share of $1.66, an increase of 47 percent from the prior year first six months diluted earnings per share of $1.13.
  • The loan portfolio, excluding the PPP loans, increased $330 million, or 6 percent annualized, in the first half of 2021.
  • Core deposits increased $1.975 billion, or 27 percent annualized, during the first six months of 2021.
  • The Company funded 8,525 PPP loans in the amount of $555 million during the first half of 2021.
  • The Company received $776 million in PPP loan forgiveness from the U.S. Small Business Administration (“SBA”) during the first half of 2021.
  • Dividends declared in the first half of 2021 of $0.63 per share, an increase of $0.05 per share, or 9 percent, over the prior year dividends of $0.58 per share.

Financial Summary

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,
2021
Mar 31,
2021
Jun 30,
2020
Jun 30,
2021
Jun 30,
2020
Operating results
Net income $ 77,627 80,802 63,444 158,429 106,783
Basic earnings per share $ 0.81 0.85 0.67 1.66 1.13
Diluted earnings per share $ 0.81 0.85 0.66 1.66 1.13
Dividends declared per share $ 0.32 0.31 0.29 0.63 0.58
Market value per share
Closing $ 55.08 57.08 35.29 55.08 35.29
High $ 63.05 67.35 46.54 67.35 46.54
Low $ 52.99 44.55 30.30 44.55 26.66
Selected ratios and other data
Number of common stock shares outstanding 95,507,234 95,501,819 95,409,061 95,507,234 95,409,061
Average outstanding shares - basic 95,505,877 95,465,801 95,405,493 95,485,839 94,346,582
Average outstanding shares - diluted 95,580,904 95,546,922 95,430,403 95,565,591 94,395,930
Return on average assets (annualized) 1.55 % 1.73 % 1.57 % 1.64 % 1.42 %
Return on average equity (annualized) 13.25 % 14.12 % 11.68 % 13.68 % 10.15 %
Efficiency ratio 49.92 % 46.75 % 47.54 % 48.31 % 50.86 %
Dividend payout ratio 39.51 % 36.47 % 43.28 % 37.95 % 51.33 %
Loan to deposit ratio 67.64 % 70.72 % 86.45 % 67.64 % 86.45 %
Number of full time equivalent employees 2,987 2,994 2,954 2,987 2,954
Number of locations 194 193 192 194 192
Number of ATMs 250 250 251 250 251

KALISPELL, Mont., July 22, 2021 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $77.6 million for the current quarter, an increase of $14.2 million, or 22 percent, from the $63.4 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.81 per share, an increase of 23 percent from the prior year second quarter diluted earnings per share of $0.66.“We are pleased to see solid loan and deposit growth with an improving economic outlook,” said Randy Chesler, President and Chief Executive Officer.“The Glacier team has done an excellent job getting back to business and taking care of customers as our markets see increased activity with our summer season in full swing.”

Net income for the six months ended June 30, 2021 was $158.4 million, an increase of $51.6 million, or 48 percent, from the $106.8 million net income from the first six months in the prior year. Diluted earnings per share for the first half of the current year was $1.66 per share, an increase of 47 percent, from the diluted earnings per share of $1.13 for the same period last year.

In May 2021, the Company announced the signing of definitive agreement to acquire Altabancorp, the parent company of Altabank, a community bank based in American Fork, Utah (collectively,“Alta”). Alta provides banking services to individuals and businesses in Utah with twenty-five banking offices from Preston, Idaho to St. George, Utah. As of March 31, 2021, Alta had total assets of $3.522 billion, total loans of $1.797 billion and total deposits of $3.159 billion. The acquisition is subject to required regulatory approvals and other customary conditions of closing and is expected to be completed in the fourth quarter of 2021. Upon closing of the transaction, Alta will become the Company's seventeenth Bank division.

Asset Summary

$ Change from
(Dollars in thousands) Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Cash and cash equivalents $ 921,207 878,450 633,142 547,610 42,757 288,065 373,597
Debt securities, available-for-sale 6,147,143 5,853,315 5,337,814 3,533,950 293,828 809,329 2,613,193
Debt securities, held-to-maturity 1,024,730 588,751 189,836 203,275 435,979 834,894 821,455
Total debt securities 7,171,873 6,442,066 5,527,650 3,737,225 729,807 1,644,223 3,434,648
Loans receivable
Residential real estate 734,838 745,097 802,508 903,198 (10,259 ) (67,670 ) (168,360 )
Commercial real estate 6,584,322 6,474,701 6,315,895 6,047,692 109,621 268,427 536,630
Other commercial 2,932,419 3,100,584 3,054,817 3,547,249 (168,165 ) (122,398 ) (614,830 )
Home equity 648,800 625,369 636,405 654,392 23,431 12,395 (5,592 )
Other consumer 337,669 324,178 313,071 300,847 13,491 24,598 36,822
Loans receivable 11,238,048 11,269,929 11,122,696 11,453,378 (31,881 ) 115,352 (215,330 )
Allowance for credit losses (151,448 ) (156,446 ) (158,243 ) (162,509 ) 4,998 6,795 11,061
Loans receivable, net 11,086,600 11,113,483 10,964,453 11,290,869 (26,883 ) 122,147 (204,269 )
Other assets 1,308,353 1,336,553 1,378,961 1,330,944 (28,200 ) (70,608 ) (22,591 )
Total assets $ 20,488,033 19,770,552 18,504,206 16,906,648 717,481 1,983,827 3,581,385

Total debt securities of $7.172 billion at June 30, 2021 increased $730 million, or 11 percent, during the current quarter and increased $3.435 billion, or 92 percent, from the prior year second quarter. The Company continues to purchase debt securities with excess liquidity from the increase in core deposits and SBA forgiveness of PPP loans. Debt securities represented 35 percent of total assets at June 30, 2021 compared to 30 percent of total assets at December 30, 2020 and 22 percent of total assets at June 30, 2020.

The loan portfolio of $11.238 billion at June 30, 2021 decreased $31.9 million, or 28 basis points, in the current quarter. Excluding the PPP loans, the loan portfolio increased $249 million, or 10 percent annualized, during the current quarter with the largest increase in other commercial loans which increased $113 million.

The loan portfolio decreased $215 million, or 2 percent, from the prior year second quarter. Excluding the PPP loans, the loan portfolio increased $517 million, or 5 percent, from the prior year second quarter with the largest increase in commercial real estate loans which increased $537 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,
2021
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Allowance for credit losses
Balance at beginning of period $ 158,243 158,243 124,490 124,490
Impact of adopting CECL 3,720 3,720
Acquisitions 49 49
Provision for credit losses (5,234 ) 489 37,637 36,296
Charge-offs (5,946 ) (4,246 ) (13,808 ) (5,235 )
Recoveries 4,385 1,960 6,155 3,189
Balance at end of period $ 151,448 156,446 158,243 162,509
Provision for credit losses
Loan portfolio $ (5,234 ) 489 37,637 36,296
Unfunded loan commitments (371 ) (441 ) 2,128 (182 )
Total provision for credit losses $ (5,605 ) 48 39,765 36,114
Other real estate owned $ 771 2,965 1,744 4,743
Accruing loans 90 days or more past due 4,220 3,733 1,725 6,071
Non-accrual loans 48,050 29,887 31,964 35,157
Total non-performing assets $ 53,041 36,585 35,433 45,971
Non-performing assets as a percentage of subsidiary assets 0.26 % 0.19 % 0.19 % 0.27 %
Allowance for credit losses as a percentage of non-performing loans 290 % 465 % 470 % 394 %
Allowance for credit losses as a percentage of total loans 1.35 % 1.39 % 1.42 % 1.42 %
Net charge-offs as a percentage of total loans 0.01 % 0.02 % 0.07 % 0.02 %
Accruing loans 30-89 days past due $ 12,076 44,616 22,721 25,225
Accruing troubled debt restructurings $ 37,667 41,345 42,003 41,759
Non-accrual troubled debt restructurings $ 3,179 4,702 3,507 8,204
U.S. government guarantees included in non-performing assets $ 4,186 2,778 3,011 3,305

Non-performing assets of $53.0 million at June 30, 2021 increased $16.5 million, over the prior quarter and was primarily isolated to one credit relationship. Non-performing assets increased $7.1 million, or 15 percent, over the prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2021 was 0.26 percent. Excluding the government guaranteed PPP loans, the non-performing assets as a percentage of subsidiary assets at June 30, 2021 was 0.27 percent, an increase of 8 basis points from the prior quarter and 3 basis points decrease from the prior year second quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $12.1 million at June 30, 2021 decreased $32.5 million from the prior quarter with a large portion of the decrease primarily isolated to one credit relationship which moved to non-accrual at June 30, 2021. Early stage delinquencies decreased $13.1 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2021 was 0.11 percent, which was a decrease of 29 basis points from prior quarter and an 11 basis points decrease from prior year second quarter. Excluding PPP loans, early stage delinquencies as a percentage of loans at June 30, 2021 was 0.11 percent, which was a decrease of 32 basis points from prior quarter and a 14 basis points decrease from prior year second quarter.

The current quarter provision for credit loss benefit on loans of $5.7 million was a decrease of $6.2 million from the prior quarter provision for credit loss expense of $489 thousand and a $19.3 million decrease from the prior year second quarter provision for credit loss expense of $13.6 million. The higher levels of provision for credit losses in the prior year second quarter were driven by negative economic forecasts due to COVID-19. The lower levels in the current quarter related to improvement in the economic forecasts.

The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at June 30, 2021 was 1.35 percent which was a 4 basis points decrease compared to the prior quarter. Excluding the PPP loans, the ACL as percentage of loans was 1.43 percent compared to 1.51 percent in the prior quarter and 1.62 percent in the prior year second quarter.

Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio

(Dollars in thousands) Provision for Credit Losses Loans Net (Recoveries)
Charge-Offs
ACL
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 2021 $ (5,723 ) $ (725 ) 1.35 % 0.11 % 0.26 %
First quarter 2021 489 2,286 1.39 % 0.40 % 0.19 %
Fourth quarter 2020 (1,528 ) 4,781 1.42 % 0.20 % 0.19 %
Third quarter 2020 2,869 826 1.42 % 0.15 % 0.25 %
Second quarter 2020 13,552 1,233 1.42 % 0.22 % 0.27 %
First quarter 2020 22,744 813 1.49 % 0.41 % 0.26 %
Fourth quarter 2019 1,045 1.31 % 0.24 % 0.27 %
Third quarter 2019 3,519 1.32 % 0.31 % 0.40 %

Net recoveries for the current quarter were $725 thousand compared to net charge-offs of $2.3 million for the prior quarter and net charge-offs $1.2 million from the same quarter last year. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

In response to COVID-19, the Company modified 3,054 for $1.515 billion during the second quarter of 2020. These modifications were primarily short-term payment deferrals under six months. During the second half of 2020, the majority of the modified loan deferral periods expired, and the loans returned to regular payment status. As of June 30, 2021, $46.7 million of the modifications remain in the deferral period. In addition the state of Montana created the Montana Loan Deferment Program for only Montana-based businesses and was implemented only in the third quarter of 2020. Cares Act Funds were used to provide interest payments upfront and directly to lenders on behalf of participating borrowers to convert existing commercial loans to interest only status, resulting in the deferral of principal and interest for a period of six to twelve months. As of June 30, 2021, the Company had $105 million in eligible loans benefiting from this grant program compared to $272 million in the prior quarter.

PPP Loans

Three Months ended Six Months ended
(Dollars in thousands) Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Jun 30, 2021 Jun 30, 2020
PPP interest income $ 10,328 13,523 7,304 23,851 7,304
Deferred compensation on originating PPP loans 1,522 5,213 8,412 6,735 8,412
Total PPP income impact $ 11,850 18,736 15,716 30,586 15,716


(Dollars in thousands) Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Jun 30, 2020
PPP Round 1 loans $ 176,498 489,208 909,173 1,426,746
PPP Round 2 loans 518,107 486,583
Total PPP loans 694,605 975,791 909,173 1,426,746
Net remaining fees - Round 1 1,313 6,244 17,605 40,590
Net remaining fees - Round 2 22,694 21,890
Total net remaining fees $ 24,007 28,134 17,605 40,590

The SBA Round 2 PPP program ended in early May after the available funds were fully drawn upon. During the current quarter, the Company originated $67.6 million of Round 2 PPP loans which generated $5.6 million of SBA deferred processing fees and $1.5 million of deferred compensation costs for total net deferred fees of $4.1 million. During the first half of 2021, the Company originated $555 million of Round 2 PPP loans which generated $33.2 million of SBA deferred processing fees and $6.7 million of deferred compensation costs for total net deferred fees of $26.5 million.

During the current year, the SBA processing fees received on Round 2 averaged 5.99 percent which compared to the average of 3.75 percent received on Round 1 in the prior year. The increase in the fees received was the result of an increase in the number of smaller loans which receive a higher percentage fee and the change in the SBA fee schedule for loans under $50 thousand.

The Company continued to submit applications to the SBA for Round 1 PPP loan forgiveness and also began submitting forgiveness applications for Round 2. As of June 30, 2021, the Company had $176 million or 12 percent of the $1.472 billion of Round 1 PPP loans originated in the prior year and had $518 million or 93 percent of the $555 million of Round 2 PPP loans originated in the current year.

The Company recognized $10.3 million of interest income (including deferred fees and costs) from the Round 1 and Round 2 PPP loans in the current quarter. The income recognized in the current quarter included $6.0 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of the PPP loans at June 30, 2021 were $24.0 million, which will be recognized into interest income over the remaining life of the loans or when the loans are forgiven in whole or in part by the SBA.

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,
2021
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Deposits
Non-interest bearing deposits $ 6,307,794 6,040,440 5,454,539 5,043,704 267,354 853,255 1,264,090
NOW and DDA accounts 4,151,264 4,035,455 3,698,559 3,113,863 115,809 452,705 1,037,401
Savings accounts 2,346,129 2,206,592 2,000,174 1,756,503 139,537 345,955 589,626
Money market deposit accounts 2,990,021 2,817,708 2,627,336 2,403,641 172,313 362,685 586,380
Certificate accounts 939,563 965,986 978,779 995,536 (26,423 ) (39,216 ) (55,973 )
Core deposits, total 16,734,771 16,066,181 14,759,387 13,313,247 668,590 1,975,384 3,421,524
Wholesale deposits 26,121 38,143 38,142 68,285 (12,022 ) (12,021 ) (42,164 )
Deposits, total 16,760,892 16,104,324 14,797,529 13,381,532 656,568 1,963,363 3,379,360
Repurchase agreements 995,201 996,878 1,004,583 881,227 (1,677 ) (9,382 ) 113,974
Federal Home Loan Bank advances 37,963 (37,963 )
Other borrowed funds 33,556 33,452 33,068 32,546 104 488 1,010
Subordinated debentures 132,540 132,499 139,959 139,917 41 (7,419 ) (7,377 )
Other liabilities 211,889 208,014 222,026 229,748 3,875 (10,137 ) (17,859 )
Total liabilities $ 18,134,078 17,475,167 16,197,165 14,702,933 658,911 1,936,913 3,431,145

Core deposits of $16.735 billion as of June 30, 2021 increased $669 million, or 17 percent annualized, from the prior quarter and increased $3.422 billion, or 26 percent, from the prior year second quarter. Non-interest bearing deposits of $6.308 billion as of June 30, 2021 increased $267 million, or 4 percent, from the prior quarter and increased $1.264 billion, or 25 percent, from the prior year second quarter. The last fifteen months unprecedented increase in deposits resulted from a number of factors including the PPP loan proceeds deposited by customers, federal stimulus deposits and the increase in customer savings. Non-interest bearing deposits were 38 percent of total core deposits at June 30, 2021 compared to 37 percent of total core deposits at December 31, 2020 and 38 percent at June 30, 2020.

During the prior quarter, the Company paid off $7.5 million of subordinated debt. The low levels of borrowings, including wholesale deposits and Federal Home Loan Bank (“FHLB”) advances, reflected the significant increase in core deposits which funded the asset growth.

Stockholders' Equity Summary

$ Change from
(Dollars in thousands, except per share data) Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Common equity $ 2,263,513 2,215,465 2,163,951 2,073,806 48,048 99,562 189,707
Accumulated other comprehensive income 90,442 79,920 143,090 129,909 10,522 (52,648 ) (39,467 )
Total stockholders' equity 2,353,955 2,295,385 2,307,041 2,203,715 58,570 46,914 150,240
Goodwill and core deposit intangible, net (564,546 ) (567,034 ) (569,522 ) (574,088 ) 2,488 4,976 9,542
Tangible stockholders' equity $ 1,789,409 1,728,351 1,737,519 1,629,627 61,058 51,890 159,782


Stockholders' equity to total assets 11.49 % 11.61 % 12.47 % 13.03 %
Tangible stockholders' equity to total tangible assets 8.98 % 9.00 % 9.69 % 9.98 %
Book value per common share $ 24.65 24.03 24.18 23.10 0.62 0.47 1.55
Tangible book value per common share $ 18.74 18.10 18.21 17.08 0.64 0.53 1.66

Tangible stockholders' equity of $1.789 billion at June 30, 2021 increased $61.1 million, or 4 percent, from the prior quarter and was the result of earnings retention coupled with an increase in other comprehensive income. Tangible stockholders' equity of at June 30, 2021 increased $160 million, or 10 percent, from the prior year second quarter and was due to earnings retention that more than offset the decrease in other comprehensive income. Tangible book value per common share of $18.74 at the current quarter end increased $0.64 per share, or 4 percent, from the prior quarter and increased $1.66 per share, or 10 percent, from a year ago.

Cash Dividends
On June 30, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.32 per share, an increase of $0.01 per share, or 3 percent, over the prior quarter regular dividend. The dividend was payable July 22, 2021 to shareholders of record on July 13, 2021. The dividend was the 145th consecutive 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, 2021
Compared to March 31, 2021, and June 30, 2020

Income Summary

Three Months ended $ Change from
(Dollars in thousands) Jun 30,
2021
Mar 31,
2021
Jun 30,
2020
Mar 31,
2021
Jun 30,
2020
Net interest income
Interest income $ 159,956 161,552 155,404 (1,596 ) 4,552
Interest expense 4,487 4,740 7,185 (253 ) (2,698 )
Total net interest income 155,469 156,812 148,219 (1,343 ) 7,250
Non-interest income
Service charges and other fees 13,795 12,792 11,366 1,003 2,429
Miscellaneous loan fees and charges 2,923 2,778 1,682 145 1,241
Gain on sale of loans 16,106 21,624 25,858 (5,518 ) (9,752 )
(Loss) gain on sale of investments (61 ) 284 128 (345 ) (189 )
Other income 2,759 2,643 2,190 116 569
Total non-interest income 35,522 40,121 41,224 (4,599 ) (5,702 )
Total income 190,991 196,933 189,443 (5,942 ) 1,548
Net interest margin (tax-equivalent) 3.44 % 3.74 % 4.12 %

Net Interest Income
The current quarter net interest income of $155 million decreased $1.3 million, or 86 basis points, over the prior quarter and increased $7.3 million, or 5 percent, from the prior year second quarter. The current quarter interest income of $160 million decreased $1.6 million, or 1 percent, compared to the prior quarter due to a decrease in interest income from the PPP loans. The current quarter interest income increased $4.6 million, or 3 percent, over the prior year second quarter due to an increase in interest income from the PPP loans and debt securities. The interest income (which included deferred fees and deferred costs) from the PPP loans was $10.3 million in the current quarter and $13.5 million in the prior quarter and $7.3 million in the prior year second quarter. Excluding the PPP loans, net interest income was $150 million in the current quarter compared to $148 million in the prior quarter and $145 million in the prior year second quarter.

The current quarter interest expense of $4.5 million decreased $253 thousand, or 5 percent, over the prior quarter and decreased $2.7 million, or 38 percent, over the prior year second quarter primarily as result of a decrease in deposit rates along with a shift in funding liabilities to low cost deposits. During the current quarter, the total cost of funding (including non-interest bearing deposits) of 10 basis points declined 2 basis points from the prior quarter and declined 10 basis points from the prior year second quarter with both decreases driven by a decrease in rates in deposits and borrowings.

The Company's net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.44 percent compared to 3.74 percent in the prior quarter and 4.12 in the prior year second quarter. The core net interest margin, excluding 3 basis points of discount accretion, 1 basis point from non-accrual interest and 7 basis points increase from the PPP loans, was 3.33 percent compared to 3.56 in the prior quarter and 4.21 percent in the prior year second quarter. The core net interest margin decreased 23 basis points in the current quarter and decreased 88 basis points from the prior year second quarter due to a decrease in earning asset yields. Earning asset yields have decreased due to the combined impact of the significant increase in the debt securities and the decrease in yields on both loans and debt securities. Debt securities comprised 39.4 percent of the earning assets during the current quarter compared to 35.7 percent in the prior quarter and 24.6 percent in the prior year second quarter.

Non-interest Income
Non-interest income for the current quarter totaled $35.5 million which was a decrease of $4.6 million, or 11 percent, over the prior quarter and a decrease of $5.7 million, or 14 percent, over the same quarter last year. Service charges and other fees increased $1.0 million from the prior quarter and increased $2.4 million from the prior year second quarter as a result of increased customer accounts and transaction activity. Miscellaneous loan fees and charges of $2.9 million in the current quarter increased $1.2 million, or 74 percent, from the prior year second quarter and was primarily driven by increases in loan servicing income and credit card interchange fees due to increased activity.

Gain on the sale of loans of $16.1 million for the current quarter decreased $5.5 million, or 26 percent, compared to the prior quarter and decreased $9.8 million, or 38 percent, from the prior year second quarter. The current quarter mortgage activity was lower than prior periods, but still remained at historically elevated levels.

Non-interest Expense Summary

Three Months ended $ Change from
(Dollars in thousands) Jun 30,
2021
Mar 31,
2021
Jun 30,
2020
Mar 31,
2021
Jun 30,
2020
Compensation and employee benefits $ 64,109 62,468 57,981 1,641 6,128
Occupancy and equipment 9,208 9,515 9,357 (307 ) (149 )
Advertising and promotions 2,906 2,371 2,138 535 768
Data processing 5,661 5,206 5,042 455 619
Other real estate owned 48 12 75 36 (27 )
Regulatory assessments and insurance 1,702 1,879 1,037 (177 ) 665
Core deposit intangibles amortization 2,488 2,488 2,613 (125 )
Other expenses 13,960 12,646 16,521 1,314 (2,561 )
Total non-interest expense $ 100,082 96,585 94,764 3,497 5,318

Total non-interest expense of $100 million for the current quarter increased $3.5 million, or 4 percent, over the prior quarter and increased $5.3 million, or 6 percent, over the prior year second quarter. Excluding deferred compensation from originating PPP loans, total non-interest expense was $102 million for the current and prior quarter compared to $103 million in the prior year second quarter. Compensation and employee benefits increased $1.6 million, or 3 percent, from the prior quarter and increased $6.1 million from the prior year second quarter which was primarily driven by the decrease in deferred compensation on originating PPP loans. Deferred compensation from originating PPP loans was $1.5 million in the current quarter compared to $5.2 million in the prior quarter and $8.4 million in the prior year second quarter.

Regulatory assessment and insurance increased $665 thousand from the prior year second quarter primarily due to an accrual adjustment for the State of Montana regulatory semi-annual assessment which was waived for the first half of 2020. Other expenses of $14.0 million, increased $1.3 million, or 10 percent, from the prior quarter and decreased $2.6 million, or 16 percent, from the prior year second quarter with such changes driven by acquisition-related expenses. Current quarter other expenses included acquisition-related expenses of $1.1 million in the current quarter compared to $104 thousand in the prior quarter and $3.7 million in the prior year second quarter.

Federal and State Income Tax Expense
Tax expense during the second quarter of 2021 was $18.9 million, a decrease of $563 thousand, or 3 percent, compared to the prior quarter and an increase of $4.6 million, or 32 percent, from the prior year second quarter. The effective tax rate in the current quarter was 19.6 compared to 19.4 in the prior quarter and 18.4 percent in the prior year second quarter.

Efficiency Ratio
The efficiency ratio was 49.92 percent in the current quarter and 46.75 percent in the prior quarter and 47.54 in the prior year second quarter.“Once again, the Bank divisions were excellent in controlling non-interest expenses,” said Ron Copher, Chief Financial Officer. Excluding the impact from the PPP loans, the efficiency ratio would have been 53.53 percent in the current quarter compared to 52.89 percent in the prior quarter. The 64 basis points increase from the prior quarter was due to the decrease in gain on sale of loans in the current quarter. Excluding the impact of PPP loans, the current quarter efficiency ratio was a decrease of 39 basis points from the prior year second quarter efficiency ratio of 53.92 percent.

Operating Results for Six Months Ended June 30, 2021
Compared to June 30, 2020

Income Summary

Six Months ended
(Dollars in thousands) Jun 30,
2021
Jun 30,
2020
$ Change % Change
Net interest income
Interest income $ 321,508 $ 298,269 $ 23,239 8 %
Interest expense 9,227 15,681 (6,454 ) (41 )%
Total net interest income 312,281 282,588 29,693 11 %
Non-interest income
Service charges and other fees 26,587 25,386 1,201 5 %
Miscellaneous loan fees and charges 5,701 2,967 2,734 92 %
Gain on sale of loans 37,730 37,720 10 %
Gain on sale of investments 223 991 (768 ) (77 )%
Other income 5,402 7,432 (2,030 ) (27 )%
Total non-interest income 75,643 74,496 1,147 2 %
Total Income $ 387,924 $ 357,084 $ 30,840 9 %
Net interest margin (tax-equivalent) 3.58 % 4.23 %

Net Interest Income
Net-interest income of $312 million for the first half of 2021 increased $29.7 million, or 11 percent, over the same period in 2020. Interest income of $322 million for the first six months of the current year increased $23.2 million, or 8 percent, from the prior year and was primarily attributable to a $19.3 million increase in income from commercial loans, including $16.5 million from the PPP loans. Additionally, interest income on debt securities increased $9.2 million, or 20 percent, over the prior year which resulted from the increased volume of debt securities. Interest expense of $9.2 million for the first half of 2021 decreased $6.5 million, or 41 percent over the prior year primarily as a result of a decrease in the cost of deposits. The total funding cost (including non-interest bearing deposits) for the first six months of 2021 was 11 basis points, which decreased 14 basis points compared to 25 basis points in first six months of 2020.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2021 was 3.58 percent, a 65 basis points decrease from the net interest margin of 4.23 percent for the same period in the prior year. The core net interest margin, excluding 4 basis points of discount accretion, 1 basis point of non-accrual interest and 10 basis points increase from the PPP loans, was 3.43 which was an 83 basis point decrease from the core margin of 4.26 percent in the prior year. Although the Company was successful in reducing the total cost of funding, it was not enough to outpace the decrease in yields on loans and debt securities driven by the current interest rate environment and the shift in the earning asset mix to lower yielding debt securities.

Non-interest Income
Non-interest income of $75.6 million for the first half of 2021 increased $1.1 million, or 2 percent, over the same period last year. Service charges and other fees of $26.6 million for the first six months of 2021 increased $1.2 million, or 5 percent, from prior year as a result of additional fees from increased customer accounts and transaction activity. Miscellaneous loan fees and charges increased $2.7 million, or 92 percent, driven by increases in loan servicing income and credit card interchange fees due to increased activity. Other income of $5.4 million decreased $2.0 million from the prior year and was primarily the result of a gain of $2.4 million on the sale of a former branch building in the first quarter of 2020.

Non-interest Expense Summary

Six Months ended
(Dollars in thousands) Jun 30,
2021
Jun 30,
2020
$ Change % Change
Compensation and employee benefits $ 126,577 $ 117,641 $ 8,936 8 %
Occupancy and equipment 18,723 18,576 147 1 %
Advertising and promotions 5,277 4,625 652 14 %
Data processing 10,867 10,324 543 5 %
Other real estate owned 60 187 (127 ) (68 )%
Regulatory assessments and insurance 3,581 2,127 1,454 68 %
Core deposit intangibles amortization 4,976 5,146 (170 ) (3 )%
Other expenses 26,606 31,625 (5,019 ) (16 )%
Total non-interest expense $ 196,667 $ 190,251 $ 6,416 3 %

Total non-interest expense of $197 million for the first half of 2021 increased $6.4 million, or 3 percent, over the prior year first half. Compensation and employee benefits for the first six months of 2021 increased $8.9 million, or 8 percent, from last year due to the increased number of employees from organic growth, increased real estate commissions, increased performance-related compensation and annual salary increases. Regulatory assessment and insurance for the first half of 2021 increased $1.5 million from the prior year same period primarily as a result of the State of Montana waiving the first semi-annual regulatory assessment of 2020 and Small Bank assessment credits applied by the FDIC in the first quarter of 2020. Other expenses of $26.6 million, decreased $5.0 million, or 16 percent, from the prior year, primarily from a decrease in acquisition-related expenses. Acquisition-related expenses were $1.1 million in the current year compared to $6.5 million in the prior year.

Provision for Credit Losses

The provision for credit loss benefit was $5.6 million for the first six months of 2021, including provision for credit loss benefit of $5.2 million on the loan portfolio and credit loss benefit of $371 thousand on unfunded loan commitments. The provision for credit loss benefit of $5.2 million on the loan portfolio in the current year decreased $41.5 million over the provision for credit loss expense of $36.3 million in the prior year which was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the current year were $1.6 million compared to $2.0 million during the prior year.

Federal and State Income Tax Expense
Tax expense of $38.4 million in the first six months of 2021 increased $14.5 million, or 61 percent, over the prior year same period. The effective tax rate for 2021 was 19.5 percent compared to 18.3 percent in the prior year.

Efficiency Ratio
The efficiency ratio was 48.31 percent for the first six months of 2021 compared to 50.86 percent for the same period last year. Excluding the impact from the PPP loans, the efficiency ratio was 53.21 in 2021 compared to 54.21 in 2020 with the improvement driven by an increase in investment interest income and a decrease in deposit interest expense.

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

  • the risks associated with lending and potential adverse changes of the credit quality of loans in the Company's portfolio;
  • changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company's net interest income and profitability;
  • changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties;
  • legislative or regulatory changes, such as the those signaled by the Biden Administration, as well as 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 23, 2021. The conference call will be accessible by telephone and webcast. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 7591544. To participate on the webcast, log on to: If you are unable to participate during the live webcast, the call will be archived on our website, or by calling 855-859-2056 with the ID 7591544 by July 30, 2021.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. (NASDAQ:GBCI), a member of the Russell 2000® and the S & P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions: Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d'Alene, ID), North Cascades Bank (Chelan, WA), The Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), and Western Security Bank (Billings, MT).

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


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

(Dollars in thousands, except per share data) Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Assets
Cash on hand and in banks $ 272,363 227,745 227,108 212,681
Interest bearing cash deposits 648,844 650,705 406,034 334,929
Cash and cash equivalents 921,207 878,450 633,142 547,610
Debt securities, available-for-sale 6,147,143 5,853,315 5,337,814 3,533,950
Debt securities, held-to-maturity 1,024,730 588,751 189,836 203,275
Total debt securities 7,171,873 6,442,066 5,527,650 3,737,225
Loans held for sale, at fair value 98,410 118,731 166,572 115,345
Loans receivable 11,238,048 11,269,929 11,122,696 11,453,378
Allowance for credit losses (151,448 ) (156,446 ) (158,243 ) (162,509 )
Loans receivable, net 11,086,600 11,113,483 10,964,453 11,290,869
Premises and equipment, net 315,573 322,354 325,335 326,005
Other real estate owned 771 2,965 1,744 4,743
Accrued interest receivable 70,452 79,331 75,497 77,363
Core deposit intangible, net 50,533 53,021 55,509 60,733
Goodwill 514,013 514,013 514,013 513,355
Non-marketable equity securities 10,019 10,022 10,023 11,592
Bank-owned life insurance 123,035 122,843 123,763 122,388
Other assets 125,547 113,273 106,505 99,420
Total assets $ 20,488,033 19,770,552 18,504,206 16,906,648
Liabilities
Non-interest bearing deposits $ 6,307,794 6,040,440 5,454,539 5,043,704
Interest bearing deposits 10,453,098 10,063,884 9,342,990 8,337,828
Securities sold under agreements to repurchase 995,201 996,878 1,004,583 881,227
FHLB advances 37,963
Other borrowed funds 33,556 33,452 33,068 32,546
Subordinated debentures 132,540 132,499 139,959 139,917
Accrued interest payable 2,433 2,590 3,305 4,211
Deferred tax liability 6,463 3,116 23,860 25,213
Other liabilities 202,993 202,308 194,861 200,324
Total liabilities 18,134,078 17,475,167 16,197,165 14,702,933
Commitments and Contingent Liabilities
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 955 955 954 954
Paid-in capital 1,496,488 1,495,438 1,495,053 1,492,817
Retained earnings - substantially restricted 766,070 719,072 667,944 580,035
Accumulated other comprehensive income 90,442 79,920 143,090 129,909
Total stockholders' equity 2,353,955 2,295,385 2,307,041 2,203,715
Total liabilities and stockholders' equity $ 20,488,033 19,770,552 18,504,206 16,906,648


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

Three Months ended Six Months ended
(Dollars in thousands, except per share data) Jun 30,
2021
Mar 31,
2021
Jun 30,
2020
Jun 30,
2021
Jun 30,
2020
Interest Income
Debt securities $ 28,730 27,306 25,833 56,036 46,847
Residential real estate loans 9,541 10,146 12,098 19,687 23,624
Commercial loans 110,829 113,541 106,343 224,370 205,027
Consumer and other loans 10,856 10,559 11,130 21,415 22,771
Total interest income 159,956 161,552 155,404 321,508 298,269
Interest Expense
Deposits 2,804 3,014 4,587 5,818 10,168
Securities sold under agreements to
repurchase
651 689 908 1,340 1,897
Federal Home Loan Bank advances 268 614
Other borrowed funds 177 174 172 351 300
Subordinated debentures 855 863 1,250 1,718 2,702
Total interest expense 4,487 4,740 7,185 9,227 15,681
Net Interest Income 155,469 156,812 148,219 312,281 282,588
Provision for credit losses (5,653 ) 48 16,929 (5,605 ) 36,114
Net interest income after provision for credit losses 161,122 156,764 131,290 317,886 246,474
Non-Interest Income
Service charges and other fees 13,795 12,792 11,366 26,587 25,386
Miscellaneous loan fees and charges 2,923 2,778 1,682 5,701 2,967
Gain on sale of loans 16,106 21,624 25,858 37,730 37,720
(Loss) gain on sale of debt securities (61 ) 284 128 223 991
Other income 2,759 2,643 2,190 5,402 7,432
Total non-interest income 35,522 40,121 41,224 75,643 74,496
Non-Interest Expense
Compensation and employee benefits 64,109 62,468 57,981 126,577 117,641
Occupancy and equipment 9,208 9,515 9,357 18,723 18,576
Advertising and promotions 2,906 2,371 2,138 5,277 4,625
Data processing 5,661 5,206 5,042 10,867 10,324
Other real estate owned 48 12 75 60 187
Regulatory assessments and insurance 1,702 1,879 1,037 3,581 2,127
Core deposit intangibles amortization 2,488 2,488 2,613 4,976 5,146
Other expenses 13,960 12,646 16,521 26,606 31,625
Total non-interest expense 100,082 96,585 94,764 196,667 190,251
Income Before Income Taxes 96,562 100,300 77,750 196,862 130,719
Federal and state income tax expense 18,935 19,498 14,306 38,433 23,936
Net Income $ 77,627 80,802 63,444 158,429 106,783


Glacier Bancorp, Inc.
Average Balance Sheets

Three Months ended
June 30, 2021 March 31, 2021
(Dollars in thousands) Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans $ 825,467 $ 9,541 4.62 % $ 893,052 $ 10,146 4.54 %
Commercial loans 1 9,520,603 112,226 4.73 % 9,412,281 114,928 4.95 %
Consumer and other loans 964,415 10,856 4.51 % 949,736 10,559 4.51 %
Total loans 2 11,310,485 132,623 4.70 % 11,255,069 135,633 4.89 %
Tax-exempt debt securities 2 1,548,323 14,740 3.81 % 1,545,484 14,710 3.81 %
Taxable debt securities 4 5,810,800 17,251 1.19 % 4,713,936 15,851 1.35 %
Total earning assets 18,669,608 164,614 3.54 % 17,514,489 166,194 3.85 %
Goodwill and intangibles 565,749 568,222
Non-earning assets 804,897 843,305
Total assets $ 20,040,254 $ 18,926,016
Liabilities
Non-interest bearing deposits $ 6,100,872 $ % $ 5,591,531 $ %
NOW and DDA accounts 4,073,819 600 0.06 % 3,830,856 570 0.06 %
Savings accounts 2,295,334 141 0.02 % 2,092,517 138 0.03 %
Money market deposit accounts 2,921,642 861 0.12 % 2,719,267 865 0.13 %
Certificate accounts 955,694 1,181 0.50 % 971,584 1,422 0.59 %
Total core deposits 16,347,361 2,783 0.07 % 15,205,755 2,995 0.08 %
Wholesale deposits 5 34,301 21 0.24 % 38,076 19 0.20 %
Repurchase agreements 974,744 651 0.27 % 1,001,394 689 0.28 %
FHLB advances % %
Subordinated debentures and other borrowed funds 166,002 1,032 2.49 % 165,830 1,037 2.54 %
Total funding liabilities 17,522,408 4,487 0.10 % 16,411,055 4,740 0.12 %
Other liabilities 168,613 193,858
Total liabilities 17,691,021 16,604,913
Stockholders' Equity
Common stock 955 955
Paid-in capital 1,495,886 1,495,138
Retained earnings 756,561 710,137
Accumulated other comprehensive income 95,831 114,873
Total stockholders' equity 2,349,233 2,321,103
Total liabilities and stockholders' equity $ 20,040,254 $ 18,926,016
Net interest income (tax-equivalent) $ 160,127 $ 161,454
Net interest spread (tax-equivalent) 3.44 % 3.73 %
Net interest margin (tax-equivalent) 3.44 % 3.74 %

______________________________
1 Includes tax effect of $1.4 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2021 and March 31, 2021, respectively.
2 Total loans are gross of the allowance for credit 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 $3.0 million and $3.0 million on tax-exempt debt securities income for the three months ended June 30, 2021 and March 31, 2021, respectively.
4 Includes tax effect of $255 thousand and $255 thousand on federal income tax credits for the three months ended June 30, 2021 and March 31, 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


Glacier Bancorp, Inc.
Average Balance Sheets (continued)

Three Months ended
June 30, 2021 June 30, 2020
(Dollars in thousands) Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans $ 825,467 $ 9,541 4.62 % $ 1,048,095 $ 12,098 4.62 %
Commercial loans 1 9,520,603 112,226 4.73 % 9,235,881 107,632 4.69 %
Consumer and other loans 964,415 10,856 4.51 % 957,798 11,130 4.67 %
Total loans 2 11,310,485 132,623 4.70 % 11,241,774 130,860 4.68 %
Tax-exempt debt securities 3 1,548,323 14,740 3.81 % 1,401,603 14,248 4.07 %
Taxable debt securities 4 5,810,800 17,251 1.19 % 2,266,707 14,730 2.60 %
Total earning assets 18,669,608 164,614 3.54 % 14,910,084 159,838 4.31 %
Goodwill and intangibles 565,749 575,296
Non-earning assets 804,897 797,403
Total assets $ 20,040,254 $ 16,282,783
Liabilities
Non-interest bearing deposits $ 6,100,872 $ % $ 4,733,485 $ %
NOW and DDA accounts 4,073,819 600 0.06 % 3,018,706 687 0.09 %
Savings accounts 2,295,334 141 0.02 % 1,687,448 175 0.04 %
Money market deposit accounts 2,921,642 861 0.12 % 2,300,787 1,240 0.22 %
Certificate accounts 955,694 1,181 0.50 % 1,013,188 2,408 0.96 %
Total core deposits 16,347,361 2,783 0.07 % 12,753,614 4,510 0.14 %
Wholesale deposits 5 34,301 21 0.24 % 68,503 77 0.46 %
Repurchase agreements 974,744 651 0.27 % 740,748 908 0.49 %
FHLB advances % 182,061 268 0.58 %
Subordinated debentures and other borrowed funds 166,002 1,032 2.49 % 172,996 1,422 3.31 %
Total funding liabilities 17,522,408 4,487 0.10 % 13,917,922 7,185 0.21 %
Other liabilities 168,613 180,935
Total liabilities 17,691,021 14,098,857
Stockholders' Equity
Common stock 955 954
Paid-in capital 1,495,886 1,492,230
Retained earnings 756,561 575,455
Accumulated other comprehensive income 95,831 115,287
Total stockholders' equity 2,349,233 2,183,926
Total liabilities and stockholders' equity $ 20,040,254 $ 16,282,783
Net interest income (tax-equivalent) $ 160,127 $ 152,653
Net interest spread (tax-equivalent) 3.44 % 4.10 %
Net interest margin (tax-equivalent) 3.44 % 4.12 %

______________________________
1 Includes tax effect of $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2021 and 2020, respectively.
2 Total loans are gross of the allowance for credit 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 $3.0 million and $2.9 million on tax-exempt debt securities income for the three months ended June 30, 2021 and 2020, respectively.
4 Includes tax effect of $255 thousand and $266 thousand on federal income tax credits for the three months ended June 30, 2021 and 2020, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


Glacier Bancorp, Inc.
Average Balance Sheets (continued)

Six Months ended
June 30, 2021 June 30, 2020
(Dollars in thousands) Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans $ 859,073 $ 19,687 4.58 % $ 1,014,371 $ 23,624 4.66 %
Commercial loans 1 9,466,763 227,154 4.84 % 8,522,681 207,588 4.90 %
Consumer and other loans 957,116 21,415 4.51 % 942,361 22,771 4.86 %
Total loans 2 11,282,952 268,256 4.79 % 10,479,413 253,983 4.87 %
Tax-exempt debt securities 3 1,546,912 29,450 3.81 % 1,166,102 23,657 4.06 %
Taxable debt securities 4 5,265,398 33,102 1.26 % 2,163,144 28,502 2.64 %
Total earning assets 18,095,262 330,808 3.69 % 13,808,659 306,142 4.46 %
Goodwill and intangibles 566,979 557,363
Non-earning assets 823,973 743,871
Total assets $ 19,486,214 $ 15,109,893
Liabilities
Non-interest bearing deposits $ 5,847,608 $ % $ 4,203,222 $ %
NOW and DDA accounts 3,953,009 1,170 0.06 % 2,846,928 1,602 0.11 %
Savings accounts 2,194,485 279 0.03 % 1,603,129 414 0.05 %
Money market deposit accounts 2,821,014 1,726 0.12 % 2,166,293 2,864 0.27 %
Certificate accounts 963,595 2,603 0.54 % 989,548 5,003 1.02 %
Total core deposits 15,779,711 5,778 0.07 % 11,809,120 9,883 0.17 %
Wholesale deposits 5 36,178 40 0.22 % 62,806 285 0.91 %
Repurchase agreements 987,995 1,340 0.27 % 641,785 1,897 0.59 %
FHLB advances % 145,366 614 0.84 %
Subordinated debentures and other borrowed funds 165,917 2,069 2.51 % 171,481 3,002 3.52 %
Total funding liabilities 16,969,801 9,227 0.11 % 12,830,558 15,681 0.25 %
Other liabilities 181,166 164,148
Total liabilities 17,150,967 12,994,706
Stockholders' Equity
Common stock 955 944
Paid-in capital 1,495,514 1,454,617
Retained earnings 733,478 569,203
Accumulated other comprehensive income 105,300 90,423
Total stockholders' equity 2,335,247 2,115,187
Total liabilities and stockholders' equity $ 19,486,214 $ 15,109,893
Net interest income (tax-equivalent) $ 321,581 $ 290,461
Net interest spread (tax-equivalent) 3.58 % 4.21 %
Net interest margin (tax-equivalent) 3.58 % 4.23 %

______________________________
1 Includes tax effect of $2.8 million and $2.6 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2021 and 2020, respectively.
2 Total loans are gross of the allowance for credit 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 $6.0 million and $4.8 million on tax-exempt debt securities income for the six months ended June 30, 2021 and 2020, respectively.
4 Includes tax effect of $510 thousand and $532 thousand on federal income tax credits for the six months ended June 30, 2021 and 2020, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.


Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification

Loans Receivable, by Loan Type % Change from
(Dollars in thousands) Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Custom and owner occupied construction $ 158,405 $ 153,226 $ 157,529 $ 177,172 3 % 1 % (11 )%
Pre-sold and spec construction 163,740 154,312 148,845 161,964 6 % 10 % 1 %
Total residential construction 322,145 307,538 306,374 339,136 5 % 5 % (5 )%
Land development 111,736 103,960 102,930 94,667 7 % 9 % 18 %
Consumer land or lots 138,292 133,409 123,747 120,015 4 % 12 % 15 %
Unimproved land 63,469 62,002 59,500 63,459 2 % 7 % %
Developed lots for operative builders 27,143 27,310 30,449 26,647 (1 )% (11 )% 2 %
Commercial lots 64,664 61,289 60,499 60,563 6 % 7 % 7 %
Other construction 554,548 604,326 555,375 477,922 (8 )% % 16 %
Total land, lot, and other construction 959,852 992,296 932,500 843,273 (3 )% 3 % 14 %
Owner occupied 2,019,860 1,973,309 1,945,686 1,855,994 2 % 4 % 9 %
Non-owner occupied 2,436,672 2,372,644 2,290,512 2,238,586 3 % 6 % 9 %
Total commercial real estate 4,456,532 4,345,953 4,236,198 4,094,580 3 % 5 % 9 %
Commercial and industrial 1,654,237 1,883,438 1,850,197 2,342,081 (12 )% (11 )% (29 )%
Agriculture 746,678 728,579 721,490 714,227 2 % 3 % 5 %
1st lien 1,105,579 1,130,339 1,228,867 1,227,514 (2 )% (10 )% (10 )%
Junior lien 38,029 35,230 41,641 47,121 8 % (9 )% (19 )%
Total 1-4 family 1,143,608 1,165,569 1,270,508 1,274,635 (2 )% (10 )% (10 )%
Multifamily residential 398,499 380,172 391,895 343,870 5 % 2 % 16 %
Home equity lines of credit 693,135 664,800 657,626 655,492 4 % 5 % 6 %
Other consumer 201,336 191,152 190,186 181,402 5 % 6 % 11 %
Total consumer 894,471 855,952 847,812 836,894 5 % 6 % 7 %
States and political subdivisions 631,199 546,086 575,647 581,673 16 % 10 % 9 %
Other 129,237 183,077 156,647 198,354 (29 )% (17 )% (35 )%
Total loans receivable, including
loans held for sale
11,336,458 11,388,660 11,289,268 11,568,723 % % (2 )%
Less loans held for sale 1 (98,410 ) (118,731 ) (166,572 ) (115,345 ) (17 )% (41 )% (15 )%
Total loans receivable $ 11,238,048 $ 11,269,929 $ 11,122,696 $ 11,453,378 % 1 % (2 )%

______________________________
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,
2021
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Jun 30,
2021
Jun 30,
2021
Jun 30,
2021
Custom and owner occupied construction $ 243 246 247 440 243
Land development 279 330 342 659 31 248
Consumer land or lots 190 325 201 427 190
Unimproved land 178 243 294 663 178
Commercial lots 368 368 368 529 368
Total land, lot and other construction 1,015 1,266 1,205 2,278 399 616
Owner occupied 3,747 5,272 6,725 9,424 3,716 31
Non-owner occupied 1,892 4,615 4,796 5,482 1,892
Total commercial real estate 5,639 9,887 11,521 14,906 5,608 31
Commercial and Industrial 6,046 6,100 6,689 5,039 5,419 597 30
Agriculture 31,742 8,392 6,313 11,087 28,787 2,955
1st lien 4,186 4,303 5,353 7,634 3,754 432
Junior lien 272 290 301 746 247 25
Total 1-4 family 4,458 4,593 5,654 8,380 4,001 457
Multifamily residential 92
Home equity lines of credit 2,653 3,614 2,939 3,048 2,529 36 88
Other consumer 542 1,017 572 412 406 99 37
Total consumer 3,195 4,631 3,511 3,460 2,935 135 125
Other 703 1,470 293 289 658 45
Total $ 53,041 36,585 35,433 45,971 48,050 4,220 771


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

Accruing 30-89 Days Delinquent Loans, by Loan Type % Change from
(Dollars in thousands) Jun 30,
2021
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Custom and owner occupied construction $ $ 963 $ 788 $ (100 )% (100 )% n/m
Pre-sold and spec construction 70 n/m n/m n/m
Total residential construction 70 963 788 (93 )% (91 )% n/m
Land development 202 n/m (100 )% n/m
Consumer land or lots 215 71 248 (100 )% (100 )% (100 )%
Unimproved land 307 334 357 411 (8 )% (14 )% (25 )%
Developed lots for operative builders 306 n/m (100 )% n/m
Commercial lots 153 n/m n/m (100 )%
Other construction 1,520 (100 )% n/m n/m
Total land, lot and other construction 307 2,069 936 812 (85 )% (67 )% (62 )%
Owner occupied 2,243 1,784 3,432 1,512 26 % (35 )% 48 %
Non-owner occupied 574 2,407 149 966 (76 )% 285 % (41 )%
Total commercial real estate 2,817 4,191 3,581 2,478 (33 )% (21 )% 14 %
Commercial and industrial 2,947 2,063 1,814 4,127 43 % 62 % (29 )%
Agriculture 837 25,458 1,553 12,084 (97 )% (46 )% (93 )%
1st lien 736 5,984 6,677 656 (88 )% (89 )% 12 %
Junior lien 106 18 55 160 489 % 93 % (34 )%
Total 1-4 family 842 6,002 6,732 816 (86 )% (87 )% 3 %
Home equity lines of credit 1,942 1,223 2,840 3,330 59 % (32 )% (42 )%
Other consumer 919 519 1,054 739 77 % (13 )% 24 %
Total consumer 2,861 1,742 3,894 4,069 64 % (27 )% (30 )%
States and political subdivisions 375 2,358 124 (100 )% (100 )% (100 )%
Other 1,395 1,753 1,065 715 (20 )% 31 % 95 %
Total $ 12,076 $ 44,616 $ 22,721 $ 25,225 (73 )% (47 )% (52 )%

______________________________
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,
2021
Mar 31,
2021
Dec 31,
2020
Jun 30,
2020
Jun 30,
2021
Jun 30,
2021
Custom and owner occupied construction $ (9 )
Pre-sold and spec construction (8 ) (7 ) (24 ) (12 ) 8
Total residential construction (8 ) (7 ) (33 ) (12 ) 8
Land development (77 ) (75 ) (106 ) (50 ) 77
Consumer land or lots (164 ) (141 ) (221 ) (17 ) 3 167
Unimproved land (21 ) (21 ) (489 ) (287 ) 21
Commercial lots (55 ) (3 )
Total land, lot and other construction (262 ) (237 ) (871 ) (357 ) 3 265
Owner occupied (70 ) (54 ) (168 ) (49 ) 41 111
Non-owner occupied (503 ) (505 ) 3,030 115 503
Total commercial real estate (573 ) (559 ) 2,862 66 41 614
Commercial and industrial (218 ) 80 1,533 576 262 480
Agriculture (6 ) (1 ) 337 33 4 10
1st lien (237 ) 5 69 42 279
Junior lien (475 ) (47 ) (211 ) (129 ) 475
Total 1-4 family (712 ) (42 ) (142 ) (129 ) 42 754
Multifamily residential (40 ) (244 ) (43 ) 40
Home equity lines of credit (23 ) 25 101 24 41 64
Other consumer 74 46 307 161 241 167
Total consumer 51 71 408 185 282 231
Other 3,329 2,981 3,803 1,727 5,312 1,983
Total $ 1,561 2,286 7,653 2,046 5,946 4,385

Visit our website at

MENAFN22072021004107003653ID1102494624


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.