Market Overview

Glacier Bancorp, Inc. Announces Results for the Quarter Ended June 30, 2016

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2nd Quarter 2016 Highlights:

  • Record earnings of $30.5 million for the current quarter, an increase $1.1 million, or 4 percent, over the prior year second quarter net income of $29.3 million.
  • Current quarter diluted earnings per share of $0.40, an increase of 3 percent from the prior year second quarter diluted earnings per share of $0.39.
  • Loan growth of $181 million, or 14 percent annualized for the current quarter.
  • Net interest margin of 4.06 percent as a percentage of earning assets, on a tax equivalent basis, for the current quarter compared to 4.01 percent in the prior quarter.
  • Dividend declared of $0.20 per share, an increase of $0.01 per share, or 5 percent, over the prior year second quarter.  The dividend was the 125th consecutive quarterly dividend declared by the Company.
  • The Company successfully completed the second and third phase of the consolidation of its bank divisions' core database systems into our new "Gold Bank" core database system.
  • The Company announced the signing of a definitive agreement to acquire Treasure State Bank based in Missoula, Montana.

First Half of 2016 Highlights:

  • Net income of $59.1 million for the first half of 2016, an increase of 4 percent over $57.0 million for the same period in the prior year.
  • Diluted earnings per share of $0.78, an increase of 3 percent from the prior year first half diluted earnings per share of $0.76.
  • Loan growth of $300 million, or 12 percent annualized for the for the first half of the current year.
  • Net interest margin of 4.04 percent as a percentage of earning assets, on a tax equivalent basis, for the first six months of the current year compared to 4.00 percent for the same period last year.

Financial Highlights

 At or for the Three Months ended At or for the Six Months ended
(Dollars in thousands, except per share and market data)Jun 30,
 2016
 Mar 31,
 2016
 Jun 30,
 2015
 Jun 30,
 2016
 Jun 30,
 2015
Operating results         
Net income$30,451  28,682  29,335  59,133  57,005 
Basic earnings per share$0.40  0.38  0.39  0.78  0.76 
Diluted earnings per share$0.40  0.38  0.39  0.78  0.76 
Dividends declared per share$0.20  0.20  0.19  0.40  0.37 
Market value per share         
Closing$26.58  25.42  29.42  26.58  29.42 
High$27.68  26.34  30.08  27.68  30.08 
Low$24.31  22.19  24.76  22.19  22.27 
Selected ratios and other data         
Number of common stock shares outstanding 76,171,580  76,168,388  75,531,258  76,171,580  75,531,258 
Average outstanding shares - basic 76,170,734  76,126,251  75,530,591  76,148,493  75,369,366 
Average outstanding shares - diluted 76,205,069  76,173,417  75,565,655  76,191,655  75,407,621 
Return on average assets (annualized)1.34% 1.28% 1.39% 1.31% 1.37%
Return on average equity (annualized)10.99% 10.53% 11.05% 10.76% 10.89%
Efficiency ratio56.10% 56.53% 55.91% 56.31% 55.36%
Dividend payout ratio50.00% 52.63% 48.72% 51.28% 48.68%
Loan to deposit ratio76.92% 74.65% 74.11% 76.92% 74.11%
Number of full time equivalent employees 2,210  2,184  2,058  2,210  2,058 
Number of locations 143  144  135  143  135 
Number of ATMs 167  167  158  167  158 
          

KALISPELL, Mont., July 21, 2016 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net income of $30.5 million for the current quarter, an increase of $1.1 million, or 4 percent, from the $29.3 million of net income for the prior year second quarter.  Diluted earnings per share for the current quarter was $0.40 per share, an increase of $0.01, or 3 percent, from the prior year second quarter diluted earnings per share of $0.39.  Included in the current quarter was $1.0 million of acquisition-related expenses, including conversion expenses, and $1.3 million of expenses related to the Company's consolidation of its bank divisions' core database systems (Core Consolidation Project or "CCP") including expenses related to the re-issuance of debit cards with chip technology.   The Company has completed the CCP conversion project for six of its thirteen bank divisions and is expecting to complete the project by year end.   "It was another very solid quarter on a number of fronts," said Mick Blodnick, President and Chief Executive Officer.  "Our Banks provided a record quarter for earnings and organic loan production at a time when we are in the midst of the largest internal core data project we have ever undertaken.  In addition, our core interest margin remained above 4 percent," Blodnick said.

Net income for the six months ended June 30, 2016 was $59.1 million, an increase of $2.1 million, or 4 percent, from the $57.0 million of net income for the first six months of the prior year.  Diluted earnings per share for the first half of 2016 was $0.78 per share, an increase of $0.02, or 3 percent, from the diluted earnings per share of $0.76 for the first six months of the prior year.

The acquisition of Treasure State Bank marks the Company's 18th acquisition since 2000 and its sixth announced transaction in the past three years.  As of December 31, 2015, Treasure State Bank had total assets of $71.8 million, gross loans of $53.2 million and total deposits of $57.7 million.  The Company has received all regulatory approvals for the transaction.  "We're excited to add Treasure State Bank and a group of talented bankers to our Company," said Blodnick.  "This Bank will fit nicely with First Security Bank and we expect it to be an excellent strategic addition."

Asset Summary

         $ Change from
(Dollars in thousands)Jun 30,
 2016
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
Cash and cash equivalents$160,333  150,861  193,253  355,719  9,472  (32,920) (195,386)
Investment securities, available-for-sale2,487,955  2,604,625  2,610,760  2,361,830  (116,670) (122,805) 126,125 
Investment securities, held-to-maturity680,574  691,663  702,072  593,314  (11,089) (21,498) 87,260 
Total investment securities3,168,529  3,296,288  3,312,832  2,955,144  (127,759) (144,303) 213,385 
Loans receivable             
Residential real estate672,895  685,026  688,912  635,674  (12,131) (16,017) 37,221 
Commercial real estate2,773,298  2,680,691  2,633,953  2,454,369  92,607  139,345  318,929 
Other commercial1,258,227  1,172,956  1,099,564  1,074,905  85,271  158,663  183,322 
Home equity431,659  423,895  420,901  410,708  7,764  10,758  20,951 
Other consumer242,538  234,625  235,351  231,775  7,913  7,187  10,763 
Loans receivable5,378,617  5,197,193  5,078,681  4,807,431  181,424  299,936  571,186 
Allowance for loan and lease losses(132,386) (130,071) (129,697) (130,519) (2,315) (2,689) (1,867)
Loans receivable, net5,246,231  5,067,122  4,948,984  4,676,912  179,109  297,247  569,319 
Other assets624,349  606,471  634,163  602,035  17,878  (9,814) 22,314 
Total assets$9,199,442  9,120,742  9,089,232  8,589,810  78,700  110,210  609,632 
                      

Total investment securities of $3.169 billion at June 30, 2016 decreased $128 million, or 4 percent, during the current quarter.  The decrease in the investment portfolio resulted from the Company redeploying the investment securities portfolio cash flow into the Company's higher yielding loan portfolio.  Investment securities represented 34 percent of total assets at June 30, 2016 compared to 36 percent of total assets at December 31, 2015 and 34 percent at June 30, 2015.

The Company experienced a 14 percent annualized loan growth rate during the current quarter.  The loan portfolio increased $181 million, or 3 percent, during the current quarter.  The loan category with the largest dollar increase was commercial real estate which increased $92.6 million, or 3 percent.  The loan category with the largest percentage increase during the current quarter was other commercial loans which increased $85.3 million, or 7 percent.  Included in other commercial loans are agriculture production, municipal, and other commercial and industrial loans, all of which increased during the current quarter.  Excluding the acquisition of Cañon National Bank ("Cañon") in October 2015, the loan portfolio increased $411 million, or 9 percent, since June 30, 2015 with $209 million and $167 million of the increase coming from growth in commercial real estate and other commercial loans, respectively.  "For the second consecutive quarter we generated outstanding loan growth that exceeded expectations," Blodnick said.  "The growth was well distributed among all our Banks and gives us confidence that we will exceed our loan growth targets for 2016."

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,
 2016
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
Allowance for loan and lease losses       
Balance at beginning of period$129,697  129,697  129,753  129,753 
Provision for loan losses568  568  2,284  1,047 
Charge-offs(2,532) (1,163) (7,001) (2,598)
Recoveries4,653  969  4,661  2,317 
Balance at end of period$132,386  130,071  129,697  130,519 
Other real estate owned$24,370  22,085  26,815  26,686 
Accruing loans 90 days or more past due6,194  4,615  2,131  618 
Non-accrual loans45,017  53,523  51,133  56,918 
Total non-performing assets 1$75,581  80,223  80,079  84,222 
Non-performing assets as a percentage of subsidiary assets0.82% 0.88% 0.88% 0.98%
Allowance for loan and lease losses as a percentage of non-performing loans259% 224% 244% 227%
Allowance for loan and lease losses as a percentage of total loans2.46% 2.50% 2.55% 2.71%
Net (recoveries) charge-offs as a percentage of total loans(0.04)% % 0.05% 0.01%
Accruing loans 30-89 days past due$23,479  23,996  19,413  28,474 
Accruing troubled debt restructurings$50,054  53,311  63,590  64,336 
Non-accrual troubled debt restructurings$23,822  23,879  27,057  32,664 
___________            
1 As of June 30, 2016, non-performing assets have not been reduced by U.S. government guarantees of $2.3 million.
 

Non-performing assets at June 30, 2016 were $75.6 million, a decrease of $4.6 million, or 6 percent, during the current quarter and a decrease of $8.6 million, or 10 percent, from a year ago.  Early stage delinquencies (accruing loans 30-89 days past due) of $23.4 million at June 30, 2016 decreased $517 thousand from the prior quarter.

The allowance loan and lease losses ("allowance") as a percent of total loans outstanding at June 30, 2016 was 2.46 percent, a decrease of 9 basis points from 2.55 percent at December 31, 2015 which was driven by loan growth combined with stabilized credit quality.  The allowance as a percent of total loans in the current quarter decreased 25 basis points from 2.71 percent at June 30, 2015 which was also the result of loan growth and stabilizing credit quality.

Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands)Provision
for Loan
Losses
 Net
(Recoveries)
Charge-Offs
 ALLL
as a Percent
of Loans
 Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
 Non-Performing
Assets to
Total Subsidiary
Assets
Second quarter 2016$  $(2,315) 2.46% 0.44% 0.82%
First quarter 2016568  194  2.50% 0.46% 0.88%
Fourth quarter 2015411  1,482  2.55% 0.38% 0.88%
Third quarter 2015826  577  2.68% 0.37% 0.97%
Second quarter 2015282  (381) 2.71% 0.59% 0.98%
First quarter 2015765  662  2.77% 0.71% 1.07%
Fourth quarter 2014191  1,070  2.89% 0.58% 1.08%
Third quarter 2014360  364  2.93% 0.39% 1.21%
               

Net recoveries for the current quarter were $2.3 million compared to net charge-offs of $194 thousand for the prior quarter and net recoveries of $381 thousand from the same quarter last year.  The net recoveries and charge-offs continue to trend in the right direction with a fair amount of volatility during the quarters.  The Company was fortunate to recover a larger credit during the current quarter that it had been working towards a resolution for some time.  There was no current quarter provision for loan losses, compared to $568 thousand in the prior quarter and $282 thousand in the prior year second quarter.  Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of the loan loss provision.

Supplemental information regarding credit quality and identification of the Company's loan portfolio based on regulatory classification is provided in the exhibits at the end of this press release.  The regulatory classification of loans is based primarily on collateral type while the Company's loan segments presented herein are based on the purpose of the loan.

Liability Summary

         $ Change from
(Dollars in thousands)Jun 30,
 2016
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
Deposits             
Non-interest bearing deposits$1,907,026  1,887,004  1,918,310  1,731,015  20,022  (11,284) 176,011 
NOW and DDA accounts1,495,952  1,448,454  1,516,026  1,396,997  47,498  (20,074) 98,955 
Savings accounts926,865  879,541  838,274  751,519  47,324  88,591  175,346 
Money market deposit accounts1,403,028  1,411,970  1,382,028  1,335,625  (8,942) 21,000  67,403 
Certificate accounts1,017,681  1,063,735  1,060,650  1,146,178  (46,054) (42,969) (128,497)
Core deposits, total6,750,552  6,690,704  6,715,288  6,361,334  59,848  35,264  389,218 
Wholesale deposits338,264  325,490  229,720  197,323  12,774  108,544  140,941 
Deposits, total7,088,816  7,016,194  6,945,008  6,558,657  72,622  143,808  530,159 
Repurchase agreements414,327  445,960  423,414  408,935  (31,633) (9,087) 5,392 
Federal Home Loan Bank advances328,832  313,969  394,131  329,470  14,863  (65,299) (638)
Other borrowed funds4,926  6,633  6,602  6,665  (1,707) (1,676) (1,739)
Subordinated debentures125,920  125,884  125,848  125,776  36  72  144 
Other liabilities111,962  118,422  117,579  103,856  (6,460) (5,617) 8,106 
Total liabilities$8,074,783  8,027,062  8,012,582  7,533,359  47,721  62,201  541,424 
                      

Non-interest bearing deposits of $1.907 billion at June 30, 2016, increased $20 million, or 1 percent, from the prior quarter which was driven by seasonal fluctuations and a strong inflow of new accounts.  Excluding the Cañon acquisition, non-interest bearing deposits increased $86.9 million, or 5 percent, from June 30, 2015.  Core interest bearing deposits of $4.844 billion at June 30, 2016, increased $39.8 million, or 1 percent, from the prior quarter.  Excluding the Cañon acquisition, core interest bearing deposits at June 30, 2016 increased $65.0 million, or 1 percent, from June 30, 2015.  Wholesale deposits (i.e., brokered deposits classified as NOW, DDA, money market deposit and certificate accounts) of $338 million at June  30, 2016 increased $109 million since December 31, 2015 and increased $141 million over the prior year second quarter.  A majority of the increase was driven by a need to obtain wholesale deposits necessary for an interest rate swap.

Securities sold under agreements to repurchase ("repurchase agreements") of $414 million at June 30, 2016 decreased $31.6 million, or 7 percent, from the prior quarter and increased $5.4 million, or 1 percent, from the prior year second quarter.  Repurchase agreements fluctuated as certain customers had significant deposit cash flows.  Federal Home Loan Bank ("FHLB") advances of $329 million at June 30, 2016 increased $14.9 million, or 4 percent, during the current quarter to supplement the need for additional borrowings due to the loan growth in excess of deposit growth.

Stockholders' Equity Summary

         $ Change from
(Dollars in thousands, except per share data)Jun 30,
 2016
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
Common equity$1,104,246  1,088,359  1,074,661  1,051,011  15,887  29,585  53,235 
Accumulated other comprehensive income20,413  5,321  1,989  5,440  15,092  18,424  14,973 
Total stockholders' equity1,124,659  1,093,680  1,076,650  1,056,451  30,979  48,009  68,208 
Goodwill and core deposit intangible, net(153,608) (154,396) (155,193) (142,344) 788  1,585  (11,264)
Tangible stockholders' equity$971,051  939,284  921,457  914,107  31,767  49,594  56,944 
                  
Stockholders' equity to total assets12.23% 11.99% 11.85% 12.30%      
Tangible stockholders' equity to total tangible assets10.73% 10.48% 10.31% 10.82%      
Book value per common share$14.76  14.36  14.15  13.99  0.40  0.61  0.77 
Tangible book value per common share$12.75  12.33  12.11  12.10  0.42  0.64  0.65 
                      

Tangible stockholders' equity of $971 million at June 30, 2016 increased $31.8 million, or 3 percent, from the prior quarter primarily from earnings retention and an increase in accumulated other comprehensive income.  The increase in accumulated other comprehensive income was from an increase in unrealized gains on the available-for-sale investment securities portfolio driven by lower interest rates in the current quarter.  Tangible stockholders' equity increased $56.9 million, or 6 percent, from a year ago, the result of earnings retention, an increase in accumulated other comprehensive income and $15.2 million of Company stock issued in connection with the Cañon acquisition; such increases more than offset the increase in goodwill and other intangibles from the Cañon acquisition.  At June 30, 2016, the tangible book value per common share was $12.75 an increase of $0.42 per share from $12.33 the prior quarter principally due to earnings retention and the increase in accumulated other comprehensive income.  Tangible book value per common share for June 30, 2016, increased $0.65 per share from the prior year second quarter.

Cash Dividend
On June 29, 2016, the Company's Board of Directors declared a quarterly cash dividend of $0.20 per share.  The dividend was payable July 21, 2016 to shareholders of record July 12, 2016.  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, 2016
Compared to March 31, 2016 and June 30, 2015

Income Summary

 Three Months ended $ Change from
(Dollars in thousands)Jun 30,
 2016
 Mar 31,
 2016
 Jun 30,
 2015
 Mar 31,
 2016
 Jun 30,
 2015
Net interest income         
Interest income$86,069  84,381  78,617  1,688  7,452 
Interest expense7,424  7,675  7,369  (251) 55 
Total net interest income78,645  76,706  71,248  1,939  7,397 
Non-interest income         
Service charges and other fees15,772  14,681  15,062  1,091  710 
Miscellaneous loan fees and charges1,163  1,021  1,142  142  21 
Gain on sale of loans8,257  5,992  7,600  2,265  657 
(Loss) gain on sale of investments(220) 108  (98) (328) (122)
Other income1,787  2,450  2,096  (663) (309)
Total non-interest income26,759  24,252  25,802  2,507  957 
 $105,404  100,958  97,050  4,446  8,354 
Net interest margin (tax-equivalent)4.06% 4.01% 3.98%    
             

Net Interest Income
In the current quarter, interest income of $86.1 million increased $1.7 million, or 2 percent from the prior quarter and was primarily driven by the increase in interest income from commercial loans.  Commercial loan income increased $2.5 million, or 6 percent, during the current quarter with $759 thousand attributable to interest income recovered from loans previously placed on non-accrual.  Current quarter interest income increased $7.5 million, or 9 percent, over the prior year second quarter because of increases in interest income on commercial loans which increased $6.3 million, or 15 percent, and increases in investment income which increased $1.1 million, or 5 percent.

The current quarter interest expense of $7.4 million decreased $251 thousand, or 3 percent, from the prior quarter and increased $55 thousand from the prior year second quarter.  The total cost of funding (including non-interest bearing deposits) for the current quarter was 38 basis points compared to 39 basis points for the prior quarter and 40 basis points in the prior year second quarter.

The Company's net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.06 percent compared to 4.01 percent in the prior quarter.  During the current quarter, the earning asset yield increased by 5 basis points and was primarily the result of a 4 basis points increase from the recovery of interest on loans previously placed on non-accrual.  The Company's current quarter net interest margin increased 8 basis points from the prior year second quarter net interest margin of 3.98 percent.  The increase was driven by the shift in earning assets from the lower yielding investment securities to higher yielding loans, the current quarter recovery of interest on loans, and lower funding cost.  "Excluding the impact of the interest recovery, the Company experienced a stable net interest margin of 4.02 percent for the current quarter.  The shift in earning assets from investment securities to the the higher yielding loan portfolio continues to benefit the Company," said Ron Copher, Chief Financial Officer.

Non-interest Income
Non-interest income for the current quarter totaled $26.8 million, an increase of $2.5 million, or 10 percent, from the prior quarter and an increase of $957 thousand, or 4 percent, over the same quarter last year.  Service fee income of $15.8 million, increased $1.1 million, or 7 percent, from the prior quarter as a result of seasonal activity, an increase in the number of deposit accounts, and annual vendor incentives.  Service fee income for the current quarter increased by $710 thousand, or 5 percent, from the prior year second quarter because of the increased number of deposit accounts.  Gain on sale of residential loans for the current quarter increased $2.3 million, or 38 percent, from the prior quarter due to seasonal activity and the low interest rate environment.  Gain on sale of residential loans for the current quarter increased $657 thousand, or 9 percent, from the prior year second quarter as the Company benefited from its focus on residential lending and a beneficial interest rate environment for mortgage loans.  Included in other income was operating revenue of $40 thousand from other real estate owned ("OREO") and a gain of $142 thousand from the sale of OREO, a combined total of $182 thousand for the current quarter compared to $214 thousand for the prior quarter and $323 thousand for the prior year second quarter.

Non-interest Expense Summary

 Three Months ended $ Change from
(Dollars in thousands)Jun 30,
 2016
 Mar 31,
 2016
 Jun 30,
 2015
 Mar 31,
 2016
 Jun 30,
 2015
Compensation and employee benefits$37,560  36,941  32,729  619  4,831 
Occupancy and equipment6,443  6,676  6,432  (233) 11 
Advertising and promotions2,085  2,125  2,240  (40) (155)
Data processing3,938  3,373  2,971  565  967 
Other real estate owned214  390  1,377  (176) (1,163)
Regulatory assessments and insurance1,066  1,508  1,006  (442) 60 
Core deposit intangibles amortization788  797  755  (9) 33 
Other expenses12,367  10,546  12,435  1,821  (68)
Total non-interest expense$64,461  62,356  59,945  2,105  4,516 
                

Compensation and employee benefits for the current quarter increased by $619 thousand, or 2 percent, from the prior quarter as a result of seasonal fluctuations. Compensation and employee benefits for the current quarter increased by $4.8 million, or 15 percent, from the prior year second quarter due to the increased number of employees, including increases from the Cañon acquisition, and annual salary increases.  Current quarter occupancy and equipment expense decreased $233 thousand, or 3 percent, from the prior quarter and increased $11 thousand, or 17 basis points, from the prior year second quarter.  The current quarter data processing expense increased $565 thousand, or 17 percent, from the prior quarter and increased $967 thousand from the prior year second quarter; such increases primarily from expenses associated with CCP.  The current quarter OREO expense of $214 thousand included $145 thousand of operating expense, $24 thousand of fair value write-downs, and $45 thousand of loss from the sales of OREO.  Current quarter other expenses of $12.4 million increased $1.8 million, or 17 percent, from the prior quarter and was driven by increases from acquisition-related expenses, including conversion expenses, and costs associated with CCP.  Current quarter other expenses remained stable in total compared to the prior year second quarter, however several areas experienced increases or decreases related to acquisitions, CCP, and expenses connected with equity investments in New Market Tax Credit ("NMTC") projects.

Efficiency Ratio
The current quarter efficiency ratio was 56.10 percent, a 43 basis points reduction from the prior quarter efficiency ratio of 56.53 percent which was driven by increases in interest income on commercial loans, service charges and gain on sale of residential loans.  The current quarter efficiency ratio of 56.10 percent compared to 55.91 percent in the prior year second quarter.  The 19 basis points increase in the efficiency ratio was the result of additional costs associated with CCP, which was greater than the benefits experienced in net interest income and non-interest income.

Operating Results for Six Months ended June 30, 2016
Compared to June 30, 2015

Income Summary

 Six Months ended $ Change % Change
(Dollars in thousands)June 30,
 2016
 June 30,
 2015
 
Net interest income       
Interest income$170,450  $156,103  $14,347  9%
Interest expense15,099  14,751  348  2%
Total net interest income155,351  141,352  13,999  10%
Non-interest income       
Service charges and other fees30,453  28,511  1,942  7%
Miscellaneous loan fees and charges2,184  2,299  (115) (5)%
Gain on sale of loans14,249  13,030  1,219  9%
(Loss) gain on sale of investments(112) (93) (19) 20%
Other income4,237  4,748  (511) (11)%
Total non-interest income51,011  48,495  2,516  5%
 $206,362  $189,847  $16,515  9%
Net interest margin (tax-equivalent)4.04% 4.00%    
          

Net Interest Income
Net interest income for the first six months of the current year was $155.4 million, an increase of $14.0 million, or 10 percent, over the same period last year.  Interest income for the first six months of the current year increased $14.3 million, or 9 percent, from the prior year first six months and was principally due to an $11.8 million increase in income from commercial loans.  Additional increases included $2.0 million in interest income from investment securities and $706 thousand in interest income from residential loans.

Interest expense of $15.1 million for the first half the current year increased $348 thousand, or 2 percent, over the prior year first half.  Deposit interest expense for the first six months of the current year increased $1.1 million, or 13 percent, from the prior year first six months and was driven by the increase in wholesale deposits and the additional interest expense for an interest rate swap with a notional $100 million that began its accrual period in December 2015.  FHLB interest expense decreased $1.1 million, or 25 percent, which resulted from long-term advances maturing and being replaced by lower rate short-term advances.  The total funding cost (including non-interest bearing deposits) for the first six months of 2016 was 39 basis points compared to 41 basis points for the first six months of 2015.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first six months of 2016 was 4.04 percent, a 4 basis point increase from the net interest margin of 4.00 percent for the first six months of 2015.  The increase in the margin was primarily attributable to a shift in earning assets to higher yielding loans combined with a continued increase in low cost deposits.

Non-interest Income
Non-interest income of $51.0 million for the first half of 2016 increased $2.5 million, or 5 percent, over the same period last year.  Service charges and other fees of $30.5 million for the first six months of 2016 increased $1.9 million, or 7 percent, from the same period last year as a result of an increased number of deposit accounts and increases from recent acquisitions.  The gain of $14.2 million on the sale of residential loans for the first half of 2016 increased $1.2 million, or 9 percent, from the first half of 2015.  Included in other income was operating revenue of $50 thousand from OREO and gains of $345 thousand from the sales of OREO, which totaled $395 thousand for the first half of 2016 compared to $740 thousand for the same period in the prior year.

Non-interest Expense Summary

 Six Months ended $ Change % Change
(Dollars in thousands)June 30,
 2016
 June 30,
 2015
 
Compensation and employee benefits$74,501  $64,973  $9,528  15%
Occupancy and equipment13,119  12,492  627  5%
Advertising and promotions4,210  4,167  43  1%
Data processing7,311  5,522  1,789  32%
Other real estate owned604  2,135  (1,531) (72)%
Regulatory assessments and insurance2,574  2,311  263  11%
Core deposit intangible amortization1,585  1,486  99  7%
Other expenses22,913  22,356  557  2%
Total non-interest expense$126,817  $115,442  $11,375  10%
               

Compensation and employee benefits for the first six months of 2016 increased $9.5 million, or 15 percent, from the same period last year due to expenses related to CCP, the increased number of employees including from the acquired banks, and annual salary increases.  Occupancy and equipment expense of $13.1 million for the first half of 2016 increased $627 thousand, or 5 percent. Outsourced data processing expense increased $1.8 million, or 32 percent, from the prior year first six months as a result of additional costs from CCP.  OREO expense of $604 thousand in the first six months of 2016 decreased $1.5 million, or 72 percent, from the first six months of the prior year.  OREO expense for the first six months of 2016 included $281 thousand of operating expenses, $79 thousand of fair value write-downs, and $244 thousand of loss from the sales of OREO.

Provision for Loan Losses
The provision for loan losses was $568 thousand for the first six months of 2016, a decrease of $479 thousand, or 46 percent, from the same period in the prior year.  Net recovery of loans during the first six months of 2016 was $2.1 million compared to net charge-offs of $281 thousand from the first six months of 2015.

Efficiency Ratio
The efficiency ratio was 56.31 percent for the first six months of 2016 and 55.36 percent for the first six months of 2015.   Although there were increases in both net interest income and non-interest income, such increases were outpaced by the increases in CCP expenses and compensation expenses which contributed to the higher efficiency ratio in 2016.

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;
  • legislative or regulatory changes, including increased banking and consumer protection regulation that adversely affect the Company's business;
  • ability to complete pending or prospective future acquisitions, limit certain sources of revenue, or increase cost of operations;
  • costs or difficulties related to the completion and integration of acquisitions;
  • the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
  • reduced demand for banking products and services;
  • the 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;
  • 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;
  • potential interruption or breach in security of the Company's systems and technological changes which could expose us to new risks, fraud or system failures; and
  • the Company's success in managing risks involved in 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 22, 2016.  The conference call will be accessible by telephone and through the Internet.  Interested individuals are invited to listen to the call by telephone at 877-561-2748 and the conference ID is 41356911.  To participate on the webcast, log on to: http://edge.media-server.com/m/p/grb9rbne. If you are unable to participate during the live webcast, the call will be archived on our Web site, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 41356911 until August 5, 2016.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is a regional bank holding company providing commercial banking services in 88 communities in Montana, Idaho, Utah, Washington, Wyoming and Colorado. Glacier Bancorp, Inc. is headquartered in Kalispell, Montana, and  is the parent company for Glacier Bank, Kalispell and Bank divisions First Security Bank of Missoula; Valley Bank of Helena; Big Sky Western Bank, Bozeman; Western Security Bank, Billings; and First Bank of Montana, Lewistown, all operating in Montana; as well as Mountain West Bank, Coeur d'Alene operating in Idaho, Utah and Washington; Citizens Community Bank, Pocatello, operating in Idaho; 1st Bank, Evanston, operating in Wyoming and Utah;  First Bank of Wyoming, Powell and First State Bank, Wheatland, each operating in Wyoming; North Cascades Bank, Chelan, operating in Washington; and Bank of the San Juans, Durango, operating in Colorado. 

 
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
 
(Dollars in thousands, except per share data)June 30,
 2016
 March 31,
 2016
 December 31,
 2015
 June 30,
 2015
Assets       
Cash on hand and in banks$147,748  104,222  117,137  120,783 
Federal funds sold  1,400  6,080   
Interest bearing cash deposits12,585  45,239  70,036  234,936 
Cash and cash equivalents160,333  150,861  193,253  355,719 
Investment securities, available-for-sale2,487,955  2,604,625  2,610,760  2,361,830 
Investment securities, held-to-maturity680,574  691,663  702,072  593,314 
Total investment securities3,168,529  3,296,288  3,312,832  2,955,144 
Loans held for sale74,140  40,484  56,514  53,201 
Loans receivable5,378,617  5,197,193  5,078,681  4,807,431 
Allowance for loan and lease losses(132,386) (130,071) (129,697) (130,519)
Loans receivable, net5,246,231  5,067,122  4,948,984  4,676,912 
Premises and equipment, net177,911  192,951  194,030  186,858 
Other real estate owned24,370  22,085  26,815  26,686 
Accrued interest receivable47,554  47,363  44,524  44,563 
Deferred tax asset46,488  55,773  58,475  56,571 
Core deposit intangible, net12,970  13,758  14,555  11,501 
Goodwill140,638  140,638  140,638  130,843 
Non-marketable equity securities24,791  24,199  27,495  24,914 
Other assets75,487  69,220  71,117  66,898 
Total assets$9,199,442  9,120,742  9,089,232  8,589,810 
Liabilities       
Non-interest bearing deposits$1,907,026  1,887,004  1,918,310  1,731,015 
Interest bearing deposits5,181,790  5,129,190  5,026,698  4,827,642 
Securities sold under agreements to repurchase414,327  445,960  423,414  408,935 
FHLB advances328,832  313,969  394,131  329,470 
Other borrowed funds4,926  6,633  6,602  6,665 
Subordinated debentures125,920  125,884  125,848  125,776 
Accrued interest payable3,486  3,608  3,517  3,790 
Other liabilities108,476  114,814  114,062  100,066 
Total liabilities8,074,783  8,027,062  8,012,582  7,533,359 
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 authorized762  762  761  755 
Paid-in capital737,379  736,664  736,368  720,073 
Retained earnings - substantially restricted366,105  350,933  337,532  330,183 
Accumulated other comprehensive income20,413  5,321  1,989  5,440 
Total stockholders' equity1,124,659  1,093,680  1,076,650  1,056,451 
Total liabilities and stockholders' equity$9,199,442  9,120,742  9,089,232  8,589,810 


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 
 Three Months ended Six Months ended
(Dollars in thousands, except per share data)June 30,
 2016
 March 31,
 2016
 June 30,
 2015
 June 30,
 2016
 June 30,
 2015
Interest Income         
Investment securities$23,037  23,883  21,959  46,920  44,918 
Residential real estate loans8,124  8,285  7,942  16,409  15,703 
Commercial loans47,002  44,503  40,698  91,505  79,720 
Consumer and other loans7,906  7,710  8,018  15,616  15,762 
Total interest income86,069  84,381  78,617  170,450  156,103 
Interest Expense         
Deposits4,560  4,795  4,112  9,355  8,259 
Securities sold under agreements to repurchase275  318  232  593  473 
Federal Home Loan Bank advances1,665  1,652  2,217  3,317  4,412 
Federal funds purchased and other borrowed funds14  18  15  32  42 
Subordinated debentures910  892  793  1,802  1,565 
Total interest expense7,424  7,675  7,369  15,099  14,751 
Net Interest Income78,645  76,706  71,248  155,351  141,352 
Provision for loan losses  568  282  568  1,047 
Net interest income after provision for loan losses78,645  76,138  70,966  154,783  140,305 
Non-Interest Income         
Service charges and other fees15,772  14,681  15,062  30,453  28,511 
Miscellaneous loan fees and charges1,163  1,021  1,142  2,184  2,299 
Gain on sale of loans8,257  5,992  7,600  14,249  13,030 
(Loss) gain on sale of investments(220) 108  (98) (112) (93)
Other income1,787  2,450  2,096  4,237  4,748 
Total non-interest income26,759  24,252  25,802  51,011  48,495 
Non-Interest Expense         
Compensation and employee benefits37,560  36,941  32,729  74,501  64,973 
Occupancy and equipment6,443  6,676  6,432  13,119  12,492 
Advertising and promotions2,085  2,125  2,240  4,210  4,167 
Data processing3,938  3,373  2,971  7,311  5,522 
Other real estate owned214  390  1,377  604  2,135 
Regulatory assessments and insurance1,066  1,508  1,006  2,574  2,311 
Core deposit intangibles amortization788  797  755  1,585  1,486 
Other expenses12,367  10,546  12,435  22,913  22,356 
Total non-interest expense64,461  62,356  59,945  126,817  115,442 
Income Before Income Taxes40,943  38,034  36,823  78,977  73,358 
Federal and state income tax expense10,492  9,352  7,488  19,844  16,353 
Net Income$30,451  28,682  29,335  59,133  57,005 


Glacier Bancorp, Inc.
Average Balance Sheets
 
 Three Months ended
 June 30, 2016 June 30, 2015
(Dollars in thousands)Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
 Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
Assets           
Residential real estate loans$731,432  $8,124  4.44% $688,214  $7,942  4.62%
Commercial loans 13,902,007  47,956  4.94% 3,439,432  41,343  4.82%
Consumer and other loans666,212  7,906  4.77% 627,847  8,018  5.12%
Total loans 25,299,651  63,986  4.86% 4,755,493  57,303  4.83%
Tax-exempt investment securities 31,348,520  19,274  5.72% 1,315,849  19,022  5.78%
Taxable investment securities 41,915,740  10,686  2.23% 1,848,222  9,655  2.09%
Total earning assets8,563,911  93,946  4.41% 7,919,564  85,980  4.35%
Goodwill and intangibles153,981      142,781     
Non-earning assets390,457      391,562     
Total assets$9,108,349      $8,453,907     
Liabilities           
Non-interest bearing deposits$1,853,649  $  % $1,693,414  $  %
NOW and DDA accounts1,494,950  271  0.07% 1,343,474  258  0.08%
Savings accounts901,367  108  0.05% 744,845  84  0.05%
Money market deposit accounts1,398,230  540  0.16% 1,336,889  513  0.15%
Certificate accounts1,033,866  1,558  0.61% 1,153,143  1,784  0.62%
Wholesale deposits 5326,364  2,083  2.57% 215,138  1,473  2.75%
FHLB advances392,835  1,665  1.68% 315,104  2,217  2.78%
Repurchase agreements and  other borrowed funds498,643  1,199  0.97% 497,638  1,040  0.84%
Total funding liabilities7,899,904  7,424  0.38% 7,299,645  7,369  0.40%
Other liabilities94,220      89,751     
Total liabilities7,994,124      7,389,396     
Stockholders' Equity           
Common stock762      755     
Paid-in capital736,876      719,730     
Retained earnings365,385      329,781     
Accumulated other comprehensive income11,202      14,245     
Total stockholders' equity1,114,225      1,064,511     
Total liabilities and stockholders' equity$9,108,349      $8,453,907     
Net interest income (tax-equivalent)  $86,522      $78,611   
Net interest spread (tax-equivalent)    4.03%     3.95%
Net interest margin (tax-equivalent)    4.06%     3.98%


_______________
1  Includes tax effect of $954 thousand and $645 thousand on tax-exempt municipal loan and lease income for the three months ended June 30, 2016 and 2015, 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 $6.6 million and $6.4 million on tax-exempt investment securities income for the three months ended June 30, 2016 and 2015, respectively.
4  Includes tax effect of $352 thousand and $362 thousand on federal income tax credits for the three months ended June 30, 2016 and 2015, respectively.
5  Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.


Glacier Bancorp, Inc.
Average Balance Sheets (continued)
 
 Six Months ended
 June 30, 2016 June 30, 2015
(Dollars in thousands)Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
 Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
Assets           
Residential real estate loans$728,851  $16,409  4.50% $670,058  $15,703  4.69%
Commercial loans 13,825,968  93,291  4.90% 3,361,582  80,948  4.86%
Consumer and other loans660,025  15,616  4.76% 618,900  15,762  5.14%
Total loans 25,214,844  125,316  4.83% 4,650,540  112,413  4.87%
Tax-exempt investment securities 31,350,601  38,656  5.72% 1,309,049  37,515  5.73%
Taxable investment securities 41,957,370  22,148  2.26% 1,876,372  20,409  2.18%
Total earning assets8,522,815  186,120  4.39% 7,835,961  170,337  4.38%
Goodwill and intangibles154,385      141,759     
Non-earning assets390,675      385,605     
Total assets$9,067,875      $8,363,325     
Liabilities           
Non-interest bearing deposits$1,858,519  $  % $1,655,981  $  %
NOW and DDA accounts1,480,065  564  0.08% 1,327,491  526  0.08%
Savings accounts882,565  212  0.05% 729,456  173  0.05%
Money market deposit accounts1,402,474  1,092  0.16% 1,320,538  1,030  0.16%
Certificate accounts1,052,460  3,123  0.60% 1,159,279  3,627  0.63%
Wholesale deposits 5330,745  4,364  2.65% 217,746  2,903  2.69%
FHLB advances350,438  3,317  1.87% 307,581  4,412  2.85%
Repurchase agreements and  other borrowed funds510,104  2,427  0.96% 500,710  2,080  0.84%
Total funding liabilities7,867,370  15,099  0.39% 7,218,782  14,751  0.41%
Other liabilities95,461      88,952     
Total liabilities7,962,831      7,307,734     
Stockholders' Equity           
Common stock761      754     
Paid-in capital736,637      715,949     
Retained earnings358,461      321,936     
Accumulated other comprehensive income9,185      16,952     
Total stockholders' equity1,105,044      1,055,591     
Total liabilities and stockholders' equity$9,067,875      $8,363,325     
Net interest income (tax-equivalent)  $171,021      $155,586   
Net interest spread (tax-equivalent)    4.00%     3.97%
Net interest margin (tax-equivalent)    4.04%     4.00%


__________
1  Includes tax effect of $1.8 million and $1.2 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2016 and 2015, 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 $13.2 million and $12.3 million on tax-exempt investment securities income for the six months ended June 30, 2016 and 2015, respectively.
4  Includes tax effect of $704 thousand and $724 thousand on federal income tax credits for the six months ended June 30, 2016 and 2015, respectively.
Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.


Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
 
 Loans Receivable, by Loan Type % Change from
(Dollars in thousands)Jun 30,
 2016
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
Custom and owner occupied construction$78,525  $68,893  $75,094  $56,460  14% 5% 39%
Pre-sold and spec construction59,530  59,220  50,288  45,063  1% 18% 32%
Total residential construction138,055  128,113  125,382  101,523  8% 10% 36%
Land development61,803  59,539  62,356  78,059  4% (1)% (21)%
Consumer land or lots95,247  93,922  97,270  98,365  1% (2)% (3)%
Unimproved land70,396  73,791  73,844  76,726  (5)% (5)% (8)%
Developed lots for operative builders13,845  12,973  12,336  13,673  7% 12% 1%
Commercial lots26,084  23,558  22,035  20,047  11% 18% 30%
Other construction206,343  166,378  156,784  126,966  24% 32% 63%
Total land, lot, and other construction473,718  430,161  424,625  413,836  10% 12% 14%
Owner occupied927,237  944,411  938,625  874,651  (2)% (1)% 6%
Non-owner occupied835,272  806,856  774,192  718,024  4% 8% 16%
Total commercial real estate1,762,509  1,751,267  1,712,817  1,592,675  1% 3% 11%
Commercial and industrial705,011  664,855  649,553  635,259  6% 9% 11%
Agriculture421,097  372,616  367,339  374,258  13% 15% 13%
1st lien867,918  841,848  856,193  802,152  3% 1% 8%
Junior lien64,248  63,162  65,383  67,019  2% (2)% (4)%
Total 1-4 family932,166  905,010  921,576  869,171  3% 1% 7%
Multifamily residential198,583  197,267  201,542  195,674  1% (1)% 1%
Home equity lines of credit388,939  379,866  372,039  356,077  2% 5% 9%
Other consumer156,568  150,047  150,469  147,427  4% 4% 6%
Total consumer545,507  529,913  522,508  503,504  3% 4% 8%
Other276,111  258,475  209,853  174,732  7% 32% 58%
Total loans receivable, including  loans held for sale5,452,757  5,237,677  5,135,195  4,860,632  4% 6% 12%
Less loans held for sale 1(74,140) (40,484) (56,514) (53,201) 83% 31% 39%
Total loans receivable$5,378,617  $5,197,193  $5,078,681  $4,807,431  3% 6% 12%
__________
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,
 2016
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
 Jun 30,
 2016
 Jun 30,
 2016
 Jun 30,
 2016
Custom and owner occupied construction$390  995  1,016  1,079  390     
Pre-sold and spec construction      18       
Total residential construction390  995  1,016  1,097  390     
Land development12,830  18,190  17,582  20,405  2,128    10,702 
Consumer land or lots1,656  1,751  2,250  2,647  823    833 
Unimproved land12,147  11,651  12,328  12,580  8,109    4,038 
Developed lots for operative builders176  457  488  848  1    175 
Commercial lots1,979  1,333  1,521  2,050  217    1,762 
Other construction    4,236  4,244       
Total land, lot and other construction28,788  33,382  38,405  42,774  11,278    17,510 
Owner occupied10,503  12,130  10,952  13,057  8,620    1,883 
Non-owner occupied4,055  4,354  3,446  3,179  3,378    677 
Total commercial real estate14,558  16,484  14,398  16,236  11,998    2,560 
Commercial and industrial7,123  6,046  3,993  5,805  5,789  1,313  21 
Agriculture3,979  3,220  3,281  2,769  2,544  1,435   
1st lien11,332  11,041  10,691  9,867  6,171  1,261  3,900 
Junior lien1,489  1,111  668  739  1,349    140 
Total 1-4 family12,821  12,152  11,359  10,606  7,520  1,261  4,040 
Multifamily residential432  432  113    432     
Home equity lines of credit5,413  5,432  5,486  4,742  4,898  382  133 
Other consumer275  280  228  164  168  1  106 
Total consumer5,688  5,712  5,714  4,906  5,066  383  239 
Other1,802  1,800  1,800  29    1,802   
Total$75,581  80,223  80,079  84,222  45,017  6,194  24,370 


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,
 2016
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
Custom and owner occupied construction$375  $  $462  $  n/m  (19)% n/m 
Pre-sold and spec construction304  304  181    % 68% n/m 
Total residential construction679  304  643    123% 6% n/m 
Land development37  198  447    (81)% (92)% n/m 
Consumer land or lots676  796  166  158  (15)% 307% 328%
Unimproved land879  1,284  774  755  (32)% 14% 16%
Developed lots for operative builders166        n/m  n/m  n/m 
Commercial lots      66  n/m  n/m  (100)%
Other construction    337    n/m  (100)% n/m 
Total land, lot and other construction1,758  2,278  1,724  979  (23)% 2% 80%
Owner occupied2,975  4,552  2,760  4,727  (35)% 8% (37)%
Non-owner occupied5,364  1,466  923  8,257  266% 481% (35)%
Total commercial real estate8,339  6,018  3,683  12,984  39% 126% (36)%
Commercial and industrial4,956  4,907  1,968  6,760  1% 152% (27)%
Agriculture804  659  1,014  353  22% (21)% 128%
1st lien2,667  5,896  6,272  2,891  (55)% (57)% (8)%
Junior lien1,251  759  1,077  335  65% 16% 273%
Total 1-4 family3,918  6,655  7,349  3,226  (41)% (47)% 21%
Multifamily Residential    662  671  n/m  (100)% (100)%
Home equity lines of credit2,253  2,528  1,046  2,464  (11)% 115% (9)%
Other consumer736  607  1,227  996  21% (40)% (26)%
Total consumer2,989  3,135  2,273  3,460  (5)% 32% (14)%
Other36  40  97  41  (10)% (63)% (12)%
Total$23,479  $23,996  $19,413  $28,474  (2)% 21% (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)Jun 30,
 2016
 Mar 31,
 2016
 Dec 31,
 2015
 Jun 30,
 2015
 Jun 30,
 2016
 Jun 30,
 2016
Pre-sold and spec construction$(37) (28) (53) (23)   37 
Land development(2,342) (100) (288) (807) 27  2,369 
Consumer land or lots(351) (240) 66  (77) 25  376 
Unimproved land(46) (34) (325) (86)   46 
Developed lots for operative builders(54) (12) (85) (98)   54 
Commercial lots21  23  (26) (3) 24  3 
Other construction    (1) (1)    
Total land, lot and other construction(2,772) (363) (659) (1,072) 76  2,848 
Owner occupied(51) (27) 247  271  8  59 
Non-owner occupied(3) (1) 93  109    3 
Total commercial real estate(54) (28) 340  380  8  62 
Commercial and industrial(112) 69  1,389  1,007  590  702 
Agriculture(1) (1) 50  (7)   1 
1st lien245  47  834  (49) 315  70 
Junior lien(56) (15) (125) (129) 68  124 
Total 1-4 family189  32  709  (178) 383  194 
Multifamily residential229  229  (318) (29) 229   
Home equity lines of credit(25) 179  740  206  145  170 
Other consumer149  95  143  (3) 255  106 
Total consumer124  274  883  203  400  276 
Other313  10  (1)   846  533 
Total$(2,121) 194  2,340  281  2,532  4,653 
                   

Visit our website at www.glacierbancorp.com 

CONTACT:  Michael J. Blodnick (406) 751-4701 Randy Chesler (406) 751-4722 Ron J. Copher (406) 751-7706

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