Market Overview

Glacier Bancorp, Inc. Announces Results for the Quarter Ended June 30, 2017

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2nd Quarter 2017 Highlights:

  • Net income of $33.7 million for the current quarter, an increase of $3.2 million, or 11 percent, over the prior year second quarter net income of $30.5 million.
  • Current quarter diluted earnings per share of $0.43, an increase of 8 percent from the prior year second quarter diluted earnings per share of $0.40.
  • Organic loan growth of $176 million, or 12 percent annualized, for the current quarter.
  • Net interest margin of 4.12 percent as a percentage of earning assets, on a tax equivalent basis, a 6 basis point increase over the 4.06 percent net interest margin in the second quarter of the prior year.
  • Dividend declared of $0.21 per share, an increase of $0.01 per share, or 5 percent, over the prior year second quarter.  The dividend was the 129th consecutive quarterly dividend.
  • The Company completed the acquisition of TFB Bancorp, Inc., the holding company for The Foothills Bank, a community bank based in Yuma, Arizona with total assets of $386 million.
  • The Company announced the signing of a definitive agreement to acquire Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado with total assets of $466 million.

First Half of 2017 Highlights:

  • Net income of $64.9 million for the first half of 2017, an increase of $5.8 million, or 10 percent, over the first half of 2016 net income of $59.1 million.
  • Diluted earnings per share of $0.84, an increase of 8 percent from the prior year first six months diluted earnings per share of $0.78.
  • Organic loan growth of $369 million, or 13 percent annualized, for the first six months of the current year.
  • Net interest margin of 4.08 percent as a percentage of earning assets, on a tax equivalent basis, a 4 basis point increase over the 4.04 percent net interest margin in the first six months of the prior 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,
 2017
  Mar 31,
 2017
  Jun 30,
 2016
  Jun 30,
 2017
  Jun 30,
 2016
Operating results                    
Net income   $ 33,687     31,255     30,451     64,942     59,133  
Basic earnings per share   $ 0.43     0.41     0.40     0.84     0.78  
Diluted earnings per share   $ 0.43     0.41     0.40     0.84     0.78  
Dividends declared per share   $ 0.21     0.21     0.20     0.42     0.40  
Market value per share                    
Closing   $ 36.61     33.93     26.58     36.61     26.58  
High   $ 36.72     38.03     27.68     38.03     27.68  
Low   $ 32.06     32.47     24.31     32.06     22.19  
Selected ratios and other data                    
Number of common stock shares outstanding   78,001,890   76,619,952   76,171,580   78,001,890   76,171,580
Average outstanding shares - basic   77,546,236   76,572,116   76,170,734   77,061,867   76,148,493
Average outstanding shares - diluted   77,592,325   76,633,283   76,205,069   77,125,677   76,191,655
Return on average assets (annualized)   1.39 %   1.35 %   1.34 %   1.37 %   1.31 %
Return on average equity (annualized)   11.37 %   11.19 %   10.99 %   11.28 %   10.76 %
Efficiency ratio   52.89 %   55.57 %   56.10 %   54.17 %   56.31 %
Dividend payout ratio   48.84 %   51.22 %   50.00 %   50.00 %   51.28 %
Loan to deposit ratio   81.86 %   78.91 %   76.92 %   81.86 %   76.92 %
Number of full time equivalent employees   2,265   2,224   2,210   2,265   2,210
Number of locations   145   142   143   145   143
Number of ATMs   165   161   167   165   167

KALISPELL, Mont., July 20, 2017 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $33.7 million for the current quarter, an increase of $3.2 million, or 11 percent, from the $30.5 million of net income for the prior year second quarter.  Diluted earnings per share for the current quarter was $0.43 per share, an increase of $0.03, or 8 percent, from the prior year second quarter diluted earnings per share of $0.40.  Included in the current quarter was $867 thousand of acquisition-related expenses.   "Our 14 divisions, supported by our senior staff, continue to post impressive operating results.  It's great to see our strong momentum continue,," said Randy Chesler, President and Chief Executive Officer.  "We are very pleased to welcome The Foothills Bank into the Glacier family.  We think they are a great addition and we are excited to enter the Arizona market," Chesler said.

Net income for the six months ended June 30, 2017 was $64.9 million, an increase of $5.8 million, or 10 percent, from the $59.1 million of net income for the first six months of the prior year.  Diluted earnings per share for the first half of 2017 was $0.84 per share, an increase of $0.06, or 8 percent, from the diluted earnings per share of $0.78 for the same period in the prior year.

On June 6, 2017, the Company announced the signing of a definitive agreement to acquire Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado (collectively, "Collegiate").  As of June 30, 2017, Collegiate had total assets of $466 million, gross loans of $337 million and total deposits of $399 million.  The acquisition marks the Company's 19th acquisition since 2000, its eighth transaction in the past five years, and its fourth transaction in the state of Colorado.  The acquisition is subject to required regulatory approvals and other customary conditions of closing and is expected to completed during the first quarter of 2018.

On April 30, 2017, the Company completed the acquisition of TFB Bancorp, Inc., the holding company for The Foothills Bank, a community bank based in Yuma, Arizona (collectively, "Foothills").  The Company's results of operations and financial condition include the acquisition of Foothills from the acquisition date and the following table provides information on the fair value of selected classifications of assets and liabilities acquired:

(Dollars in thousands)   April 30,
 2017
Total assets   $ 385,839  
Investment securities   25,420  
Loans receivable   292,529  
Non-interest bearing deposits   97,527  
Interest bearing deposits   199,233  
Federal Home Loan Bank advances   22,800  


Asset Summary

                    $ Change from
(Dollars in thousands)   Jun 30,
 2017
  Mar 31,
 2017
  Dec 31,
 2016
  Jun 30,
 2016
  Mar 31,
 2017
  Dec 31,
 2016
  Jun 30,
 2016
Cash and cash equivalents   $ 237,590     234,004     152,541     160,333     3,586     85,049     77,257  
Investment securities, available-for-sale   2,142,472     2,314,521     2,425,477     2,487,955     (172,049 )   (283,005 )   (345,483 )
Investment securities, held-to-maturity   659,347     667,388     675,674     680,574     (8,041 )   (16,327 )   (21,227 )
Total investment securities   2,801,819     2,981,909     3,101,151     3,168,529     (180,090 )   (299,332 )   (366,710 )
Loans receivable                            
Residential real estate   712,726     685,458     674,347     672,895     27,268     38,379     39,831  
Commercial real estate   3,393,753     3,056,372     2,990,141     2,773,298     337,381     403,612     620,455  
Other commercial   1,549,067     1,462,110     1,342,250     1,258,227     86,957     206,817     290,840  
Home equity   445,245     433,554     434,774     431,659     11,691     10,471     13,586  
Other consumer   244,971     239,480     242,951     242,538     5,491     2,020     2,433  
Loans receivable   6,345,762     5,876,974     5,684,463     5,378,617     468,788     661,299     967,145  
Allowance for loan and lease losses   (129,877 )   (129,226 )   (129,572 )   (132,386 )   (651 )   (305 )   2,509  
Loans receivable, net   6,215,885     5,747,748     5,554,891     5,246,231     468,137     660,994     969,654  
Other assets   644,200     590,247     642,017     624,349     53,953     2,183     19,851  
Total assets   $ 9,899,494     9,553,908     9,450,600     9,199,442     345,586     448,894     700,052  

Total investment securities of $2.802 billion at June 30, 2017 decreased $180 million, or 6 percent, during the current quarter and decreased $367 million, or 12 percent, from the prior year second quarter.  The decrease in the investment portfolio resulted from the Company continuing to redeploy the investment securities portfolio cash flow into the Company's higher yielding loan portfolio.  Investment securities represented 28 percent of total assets at June 30, 2017 compared to 33 percent of total assets at December 31, 2016 and 34 percent of total assets at June 30, 2016.

Excluding the Foothills acquisition, the Company experienced another strong quarter for loan growth with an increase of $176 million, or 12 percent annualized, during the current quarter.  The loan category with the largest dollar increase was commercial real estate loans which increased $107 million, or 4 percent.  Excluding the Foothills acquisition and the acquisition of Treasure State Bank ("TSB") in August of 2016, the loan portfolio increased $623 million, or 12 percent, since June 30, 2016 with the primary increases coming from growth in commercial real estate and other commercial loans of $365 million and $255 million, respectively.  "We are very comfortable with our solid growth for the quarter and first half of the year.  Our unique business model continues to generate good quality loans with good margins across all of our divisions," Chesler said.


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,
 2017
  Mar 31,
 2017
  Dec 31,
 2016
  Jun 30,
 2016
Allowance for loan and lease losses                
Balance at beginning of period   $ 129,572     129,572     129,697     129,697  
Provision for loan losses   4,611     1,598     2,333     568  
Charge-offs   (8,818 )   (4,229 )   (11,496 )   (2,532 )
Recoveries   4,512     2,285     9,038     4,653  
Balance at end of period   $ 129,877     129,226     129,572     132,386  
Other real estate owned   $ 18,500     17,771     20,954     24,370  
Accruing loans 90 days or more past due   3,198     3,028     1,099     6,194  
Non-accrual loans   47,183     50,674     49,332     45,017  
Total non-performing assets   $ 68,881     71,473     71,385     75,581  
Non-performing assets as a percentage of subsidiary assets   0.70 %   0.75 %   0.76 %   0.82 %
Allowance for loan and lease losses as a percentage of non-performing loans   258 %   241 %   257 %   259 %
Allowance for loan and lease losses as a percentage of total loans   2.05 %   2.20 %   2.28 %   2.46 %
Net charge-offs as a percentage of total loans   0.07 %   0.03 %   0.04 %   (0.04 )%
Accruing loans 30-89 days past due   $ 31,124     39,160     25,617     23,479  
Accruing troubled debt restructurings   $ 31,742     38,955     52,077     50,054  
Non-accrual troubled debt restructurings   $ 25,418     19,479     21,693     23,822  
U.S. government guarantees included in non-performing assets   $ 1,158     1,690     1,746     2,281  

Non-performing assets at June 30, 2017 were $68.9 million, a decrease of $2.6 million, or 4 percent, from the prior quarter and a decrease of  $6.7 million, or 9 percent, from a year ago.  Non-performing assets as a percentage of subsidiary assets at June 30, 2017 was 0.70 percent which was a decrease of 12 basis points from the prior year second quarter of 0.82 percent.  Early stage delinquencies (accruing loans 30-89 days past due) of $31.1 million at June 30, 2017 decreased $8.0 million from the prior quarter and increased $7.6 million from the prior year  second quarter.   The allowance for loan and lease losses ("allowance") as a percent of total loans outstanding at June 30, 2017 was 2.05 percent, a decrease of 23 basis points from 2.28 percent at December 31, 2016 which was driven by loan growth, stabilizing credit quality, and no allowance carried over from the Foothills acquisition as a result of the acquired loans recorded at fair value.

Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands)   Provision
for Loan
Losses
  Net
Charge-Offs
(Recoveries)
  ALLL
as a Percent
of Loans
  Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
  Non-Performing
Assets to
Total Subsidiary
Assets
Second quarter 2017   $ 3,013     $ 2,362     2.05 %   0.49 %   0.70 %
First quarter 2017   1,598     1,944     2.20 %   0.67 %   0.75 %
Fourth quarter 2016   1,139     4,101     2.28 %   0.45 %   0.76 %
Third quarter 2016   626     478     2.37 %   0.49 %   0.84 %
Second quarter 2016       (2,315 )   2.46 %   0.44 %   0.82 %
First quarter 2016   568     194     2.50 %   0.46 %   0.88 %
Fourth quarter 2015   411     1,482     2.55 %   0.38 %   0.88 %
Third quarter 2015   826     577     2.68 %   0.37 %   0.97 %

Net charge-offs for the current quarter were $2.4 million compared to $1.9 million for the prior quarter and net recoveries of $2.3 million from the same quarter last year.  There was $3.0 million of current quarter provision for loan losses, compared to $1.6 million in the prior quarter and no provision 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,
 2017
  Mar 31,
 2017
  Dec 31,
 2016
  Jun 30,
 2016
  Mar 31,
 2017
  Dec 31,
 2016
  Jun 30,
 2016
Deposits                            
Non-interest bearing deposits   $ 2,234,058     2,049,476     2,041,852     1,907,026     184,582     192,206     327,032  
NOW and DDA accounts   1,717,351     1,596,353     1,588,550     1,495,952     120,998     128,801     221,399  
Savings accounts   1,059,717     1,035,023     996,061     926,865     24,694     63,656     132,852  
Money market deposit accounts   1,608,994     1,516,731     1,464,415     1,403,028     92,263     144,579     205,966  
Certificate accounts   886,504     941,628     948,714     1,017,681     (55,124 )   (62,210 )   (131,177 )
Core deposits, total   7,506,624     7,139,211     7,039,592     6,750,552     367,413     467,032     756,072  
Wholesale deposits   291,339     340,946     332,687     338,264     (49,607 )   (41,348 )   (46,925 )
Deposits, total   7,797,963     7,480,157     7,372,279     7,088,816     317,806     425,684     709,147  
Repurchase agreements   451,050     497,187     473,650     414,327     (46,137 )   (22,600 )   36,723  
Federal Home Loan Bank advances   211,505     211,627     251,749     328,832     (122 )   (40,244 )   (117,327 )
Other borrowed funds   5,817     8,894     4,440     4,926     (3,077 )   1,377     891  
Subordinated debentures   126,063     126,027     125,991     125,920     36     72     143  
Other liabilities   97,139     94,776     105,622     111,962     2,363     (8,483 )   (14,823 )
Total liabilities   $ 8,689,537     8,418,668     8,333,731     8,074,783     270,869     355,806     614,754  

Excluding the Foothills acquisition, core deposits increased $70.7 million, or 1 percent, from the prior quarter with an increase of $87 million, or 4 percent, in non-interest bearing deposits.  Excluding the Foothills and TSB acquisitions, core deposits increased $401 million, or 6 percent, from June 30, 2016 with the primary increase in non-interest bearing deposits which grew $217 million.

Securities sold under agreements to repurchase ("repurchase agreements") of $451 million at June 30, 2017 decreased $46.1 million, or 9 percent, from the prior quarter and increased $36.7 million, or 9 percent, from the prior year second quarter.  Federal Home Loan Bank ("FHLB") advances of $212 million at June 30, 2017 was stable compared to the prior quarter and decreased $117 million, or 36 percent, from the prior year second quarter due to the increase in deposits.


Stockholders' Equity Summary

                    $ Change from
(Dollars in thousands, except per share data)   Jun 30,   Mar 31,   Dec 31,   Jun 30,   Mar 31,   Dec 31,   Jun 30,
  2017 2017 2016 2016 2017 2016 2016
Common equity   $ 1,204,258     1,139,652     1,124,251     1,104,246     64,606     80,007     100,012  
Accumulated other comprehensive  income (loss)   5,699     (4,412 )   (7,382 )   20,413     10,111     13,081     (14,714 )
Total stockholders' equity   1,209,957     1,135,240     1,116,869     1,124,659     74,717     93,088     85,298  
Goodwill and core deposit intangible, net   (193,249 )   (158,799 )   (159,400 )   (153,608 )   (34,450 )   (33,849 )   (39,641 )
Tangible stockholders' equity   $ 1,016,708     976,441     957,469     971,051     40,267     59,239     45,657  
 
Stockholders' equity to total assets   12.22 %   11.88 %   11.82 %   12.23 %            
Tangible stockholders' equity to total tangible assets   10.47 %   10.39 %   10.31 %   10.73 %            
Book value per common share   $ 15.51     14.82     14.59     14.76     0.69     0.92     0.75  
Tangible book value per common share   $ 13.03     12.74     12.51     12.75     0.29     0.52     0.28  

Tangible stockholders' equity of $1.017 billion at June 30, 2017 increased $40.3 million, or 4 percent, from the prior quarter primarily as a result of earnings retention, $46.7 million of Company stock issued in connection with the Foothills acquisition and an increase in accumulated other comprehensive income.  Tangible stockholders' equity increased $45.7 million, or 5 percent, from a year ago, the result of earnings retention and $57.1 million of Company stock issued in connection with the Foothills and TSB acquisitions; such increases more than offset the increase in goodwill and core deposit intangibles and the decrease in accumulated other comprehensive income.  Tangible book value per common share at quarter end increased $0.29 per share from the prior quarter and increased $0.28 per share from a year ago.

Cash Dividend
On June 28, 2017, the Company's Board of Directors declared a quarterly cash dividend of $0.21 per share, an increase of $0.01 per share, or 5 percent, over the prior year second quarter.  The dividend is payable July 21, 2017 to shareholders of record on July 12, 2017.  Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.


Operating Results for Three Months Ended June 30, 2017
Compared to March 31, 2017 and June 30, 2016

Income Summary

    Three Months ended   $ Change from
(Dollars in thousands)   Jun 30,
 2017
  Mar 31,
 2017
  Jun 30,
 2016
  Mar 31,
 2017
  Jun 30,
 2016
Net interest income                    
Interest income   $ 94,032     87,628     86,069     6,404     7,963  
Interest expense   7,774     7,366     7,424     408     350  
Total net interest income   86,258     80,262     78,645     5,996     7,613  
Non-interest income                    
Service charges and other fees   17,495     15,633     15,772     1,862     1,723  
Miscellaneous loan fees and charges   1,092     980     1,163     112     (71 )
Gain on sale of loans   7,532     6,358     8,257     1,174     (725 )
Loss on sale of investments   (522 )   (100 )   (220 )   (422 )   (302 )
Other income   2,059     2,818     1,787     (759 )   272  
Total non-interest income   27,656     25,689     26,759     1,967     897  
    $ 113,914     105,951     105,404     7,963     8,510  
Net interest margin (tax-equivalent)   4.12 %   4.03 %   4.06 %        

Net Interest Income
In the current quarter, interest income of $94.0 million increased $6.4 million, or 7 percent, from the prior quarter with the primary increase from commercial loans which increased $6.2 million, or 12 percent.   Current quarter interest income increased $8.0 million, or 9 percent, over the prior year second quarter.   Current quarter interest income on commercial loans increased $9.2 million, or 20 percent, from the prior year second quarter which more than offset the $1.7 million decrease in investment interest income.

The current quarter interest expense of $7.8 million increased $408 thousand, or 6 percent, from the prior quarter and increased $350 thousand, or 5 percent, from the prior year second quarter.  The total cost of funding (including non-interest bearing deposits) for the current quarter was 37 basis points compared to 37 basis points for the prior quarter and 38 basis points for the prior year second quarter.

The Company's net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.12 percent compared to 4.03 percent in the prior quarter.  The 9 basis points increase in the net interest margin included a 5 basis point increase from discount accretion on acquired loans.  The increase in margin was also attributable to an increase in loan yields and the continuing shift of lower yielding investments to higher yielding loans.  The current quarter net interest margin increased 6 basis points over the prior year second quarter net interest margin of 4.06 percent, due to a decrease in cost of funds and the remix of earning assets to higher yielding loans. "The bank divisions have done well in pricing their interest bearing funding balances while growing their non-interest bearing deposit base as well," said Ron Copher, Chief Financial Officer.  "The increase in the non-interest bearing accounts and deposits will help offset higher interest rate environments."

Non-interest Income
Non-interest income for the current quarter totaled $27.7 million, an increase of $2.0 million, or 8 percent, from the prior quarter and an increase of $897 thousand, or 3 percent, over the same quarter last year.  Service charges and other fees of $17.5 million, increased by $1.9 million, or 12 percent, from the prior quarter primarily from seasonal activity and increased $1.7 million, or 11 percent, from the prior year second quarterly from the increased number of accounts.  Gain on sale of loans for the current quarter increased $1.2 million, or 18 percent, from the prior quarter as a result of seasonal activity.  Gain on sale of loans for the current quarter decreased $725 thousand, or 9 percent, from the prior year second quarter primarily due to less mortgage refinance activity.  Other income of $2.1 million, decreased $759 thousand, or 27 percent, over the prior quarter principally due to the prior quarter gain on sale of other real estate owned.

Non-interest Expense Summary

    Three Months ended   $ Change from
(Dollars in thousands)   Jun 30,
 2017
  Mar 31,
 2017
  Jun 30,
 2016
  Mar 31,
 2017
  Jun 30,
 2016
Compensation and employee benefits   $ 39,498     39,246     37,560     252     1,938  
Occupancy and equipment   6,560     6,646     6,443     (86 )   117  
Advertising and promotions   2,169     1,973     2,085     196     84  
Data processing   3,411     3,124     3,938     287     (527 )
Other real estate owned   442     273     214     169     228  
Regulatory assessments and insurance   1,087     1,061     1,066     26     21  
Core deposit intangibles amortization   639     601     788     38     (149 )
Other expenses   11,503     10,420     12,367     1,083     (864 )
Total non-interest expense   $ 65,309     63,344     64,461     1,965     848  

During 2016, the Company consolidated its Bank divisions' individual core database systems into a single core database and re-issued debit cards with chip technology (the Core Consolidation Project or "CCP").  Expenses related to CCP were $1.3 million during the second quarter of 2016. Excluding CCP expenses, non-interest expense for the current quarter increased $2.2 million, or 3 percent, over the prior year second quarter.

Compensation and employee benefits for the current quarter increased by $1.9 million, or 5 percent, from the prior year second quarter due to salary increases and the increased number of employees from acquisitions.  Outsourced data processing expense increased $287 thousand, or 9 percent, from the prior quarter due to Foothills which will not be converted to the Company's core system until fourth quarter of 2017.  Outsourced data processing expense decreased $527, or 13 percent, from the prior year second quarter as a result of decreased costs associated with CCP.  The current quarter other expenses increased  $1.1 million over the prior quarter primarily from expenses connected with equity investments in New Markets Tax Credit projects.  Current quarter other expenses decreased $864 thousand, or 7 percent, from the prior year second quarter which was due to decreased costs from CCP.

Efficiency Ratio
The current quarter efficiency ratio was 52.89 percent, a 268 basis points decrease from the prior quarter efficiency ratio of 55.57 percent and a decrease of 321 basis points from the prior year second quarter ratio of 56.10 percent.  The decrease in the efficiency ratio compared to the prior quarter and the prior year was primarily attributable to the increase in net interest income primarily due to higher commercial interest income.


Operating Results for Six Months ended June 30, 2017
Compared to June 30, 2016

Income Summary

    Six Months ended        
(Dollars in thousands)   Jun 30,
 2017
  Jun 30,
 2016
  $ Change   % Change
Net interest income                
Interest income   $ 181,660     $ 170,450     $ 11,210     7 %
Interest expense   15,140     15,099     41     %
Total net interest income   166,520     155,351     11,169     7 %
Non-interest income                
Service charges and other fees   33,128     30,453     2,675     9 %
Miscellaneous loan fees and charges   2,072     2,184     (112 )   (5 )%
Gain on sale of loans   13,890     14,249     (359 )   (3 )%
Loss on sale of investments   (622 )   (112 )   (510 )   455 %
Other income   4,877     4,237     640     15 %
Total non-interest income   53,345     51,011     2,334     5 %
    $ 219,865     $ 206,362     $ 13,503     7 %
Net interest margin (tax-equivalent)   4.08 %   4.04 %        

Net Interest Income
Interest income for the first six months of the current year increased $11.2 million, or 7 percent, from the prior year first six months and was principally due to a $14.6 million increase in income from commercial loans which more than offset the decrease of $3.6 million in interest income on investments.

Interest expense of $15.1 million for the first six months of the current year increased $41 thousand over the the same period in the prior year.  The total funding cost (including non-interest bearing deposits) for the first six months of 2017 was 37 basis points compared to 39 basis points for the first six months of 2016.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first six months of 2017 was 4.08 percent, a 4 basis point increase from the net interest margin of 4.04 percent for the first six months of 2016.  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 $53.3 million for the first six months of 2017 increased $2.3 million, or 5 percent, over the same period last year.  Service charges and other fees of $33.1 million for the first six months of 2017 increased $2.7 million, or 9 percent, from the same period last year as a result of an increased number of deposit accounts.  The gain on sale of loans of $13.9 million for the first six months of 2017 decreased $359 thousand, or 3 percent, from the same period last year which was due to a lower volume of refinanced mortgages.  Other income of $4.9 million for the first half of 2017 increased $640 thousand, or 15 percent, over the same period last year and was primarily the result of gain on sale of other real estate owned.

Non-interest Expense Summary

    Six Months ended        
(Dollars in thousands)   Jun 30,
 2017
  Jun 30,
 2016
  $ Change   % Change
Compensation and employee benefits   $ 78,744     $ 74,501     $ 4,243     6 %
Occupancy and equipment   13,206     13,119     87     1 %
Advertising and promotions   4,142     4,210     (68 )   (2 )%
Data processing   6,535     7,311     (776 )   (11 )%
Other real estate owned   715     604     111     18 %
Regulatory assessments and insurance   2,148     2,574     (426 )   (17 )%
Core deposit intangibles amortization   1,240     1,585     (345 )   (22 )%
Other expenses   21,923     22,913     (990 )   (4 )%
Total non-interest expense   $ 128,653     $ 126,817     $ 1,836     1 %

Expenses related to CCP were $2.2 million during the first six months of 2016. Excluding CCP expenses, non-interest expense for the current quarter increased $4.0 million, or 3 percent, over the prior year same period.  Compensation and employee benefits for the first six months of 2017 increased $4.2 million, or 6 percent, from the same period last year due to salary increases, vesting of restricted stock awards, and the increased number of employees from the acquired banks.  Outsourced data processing expense decreased $776, or 11 percent, from the prior year first six months as a result of decreased costs associated with CCP.  Current year other expenses of $21.9 million decreased $990 thousand, or 4 percent, from the prior year and was principally driven by decreased costs associated with CCP.

Provision for Loan Losses
The provision for loan losses was $4.6 million for the first six months of 2017, an increase of $4.0 million from the same period in the prior year.  Net charge-offs during the first six months of 2017 were $4.3 million compared to net recoveries of $2.1 million from the first six months of 2016.

Efficiency Ratio
The efficiency ratio of 54.17 percent for the first six months of 2017 decreased 214 basis points from the prior year efficiency ratio of 56.31 percent for the first six months of 2016 which resulted from the increase in net interest income largely due to higher interest income on commercial loans.

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

  • the risks associated with lending and potential adverse changes of the credit quality of loans in the Company's portfolio;
  • changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company's net interest income and profitability;
  • changes in the cost and scope of insurance from the FDIC and other third parties;
  • legislative or regulatory changes, including increased banking and consumer protection regulation that adversely affect the Company's business;
  • ability to complete pending or prospective future acquisitions, limit certain sources of revenue, or increase cost of operations;
  • costs or difficulties related to the completion and integration of acquisitions;
  • the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
  • reduced demand for banking products and services;
  • the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain (and maintain) customers;
  • competition among financial institutions in the Company's markets may increase significantly;
  • the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company's common stock and the ability to raise additional capital or grow the Company through acquisitions;
  • the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
  • consolidation in the financial services industry in the Company's markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
  • dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
  • material failure, potential interruption or breach in security of the Company's systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
  • natural disasters, including fires, floods, earthquakes, and other unexpected events;
  • the Company's success in managing risks involved in the foregoing; and
  • the effects of any reputational damage to the Company resulting from any of the foregoing.

The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, July 21, 2017.  The conference call will be accessible by telephone and through the Internet. Interested individuals are invited to listen to the call by telephone at 877-561-2748 and the conference ID is 43848059.  To participate on the webcast, log on to: http://edge.media-server.com/m/p/gmpa7phe. 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 43848059 by August 4, 2017.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is a regional bank holding company providing commercial banking services in 90 communities in Montana, Idaho, Utah, Washington, Wyoming, Colorado and Arizona.  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; Bank of the San Juans, Durango, operating in Colorado; and The Foothills Bank, Yuma, operating in Arizona.


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
                 
(Dollars in thousands, except per share data)   June 30,
 2017
  March 31,
 2017
  December 31,
 2016
  June 30,
 2016
Assets                
Cash on hand and in banks   $ 163,913     124,501     135,268     147,748  
Federal funds sold       190          
Interest bearing cash deposits   73,677     109,313     17,273     12,585  
Cash and cash equivalents   237,590     234,004     152,541     160,333  
Investment securities, available-for-sale   2,142,472     2,314,521     2,425,477     2,487,955  
Investment securities, held-to-maturity   659,347     667,388     675,674     680,574  
Total investment securities   2,801,819     2,981,909     3,101,151     3,168,529  
Loans held for sale   37,726     25,649     72,927     74,140  
Loans receivable   6,345,762     5,876,974     5,684,463     5,378,617  
Allowance for loan and lease losses   (129,877 )   (129,226 )   (129,572 )   (132,386 )
Loans receivable, net   6,215,885     5,747,748     5,554,891     5,246,231  
Premises and equipment, net   179,823     175,283     176,198     177,911  
Other real estate owned   18,500     17,771     20,954     24,370  
Accrued interest receivable   46,921     48,043     45,832     47,554  
Deferred tax asset   59,186     64,575     67,121     46,488  
Core deposit intangible, net   15,438     11,746     12,347     12,970  
Goodwill   177,811     147,053     147,053     140,638  
Non-marketable equity securities   23,995     23,944     25,550     24,791  
Other assets   84,800     76,183     74,035     75,487  
Total assets   $ 9,899,494     9,553,908     9,450,600     9,199,442  
Liabilities                
Non-interest bearing deposits   $ 2,234,058     2,049,476     2,041,852     1,907,026  
Interest bearing deposits   5,563,905     5,430,681     5,330,427     5,181,790  
Securities sold under agreements to repurchase   451,050     497,187     473,650     414,327  
FHLB advances   211,505     211,627     251,749     328,832  
Other borrowed funds   5,817     8,894     4,440     4,926  
Subordinated debentures   126,063     126,027     125,991     125,920  
Accrued interest payable   3,535     3,467     3,584     3,486  
Other liabilities   93,604     91,309     102,038     108,476  
Total liabilities   8,689,537     8,418,668     8,333,731     8,074,783  
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   780     766     765     762  
Paid-in capital   796,707     749,381     749,107     737,379  
Retained earnings - substantially restricted   406,771     389,505     374,379     366,105  
Accumulated other comprehensive income (loss)   5,699     (4,412 )   (7,382 )   20,413  
Total stockholders' equity   1,209,957     1,135,240     1,116,869     1,124,659  
Total liabilities and stockholders' equity   $ 9,899,494     9,553,908     9,450,600     9,199,442  



Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 
    Three Months ended   Six Months ended
(Dollars in thousands, except per share data)   June 30,
 2017
  March 31,
 2017
  June 30,
 2016
  June 30,
 2017
  June 30,
 2016
Interest Income                    
Investment securities   $ 21,379     21,939     23,037     43,318     46,920  
Residential real estate loans   8,350     7,918     8,124     16,268     16,409  
Commercial loans   56,182     49,970     47,002     106,152     91,505  
Consumer and other loans   8,121     7,801     7,906     15,922     15,616  
Total interest income   94,032     87,628     86,069     181,660     170,450  
Interest Expense                    
Deposits   4,501     4,440     4,560     8,941     9,355  
Securities sold under agreements to repurchase   443     382     275     825     593  
Federal Home Loan Bank advances   1,734     1,510     1,665     3,244     3,317  
Federal funds purchased and  other borrowed funds   19     15     14     34     32  
Subordinated debentures   1,077     1,019     910     2,096     1,802  
Total interest expense   7,774     7,366     7,424     15,140     15,099  
Net Interest Income   86,258     80,262     78,645     166,520     155,351  
Provision for loan losses   3,013     1,598         4,611     568  
Net interest income after provision for loan losses   83,245     78,664     78,645     161,909     154,783  
Non-Interest Income                    
Service charges and other fees   17,495     15,633     15,772     33,128     30,453  
Miscellaneous loan fees and charges   1,092     980     1,163     2,072     2,184  
Gain on sale of loans   7,532     6,358     8,257     13,890     14,249  
Loss on sale of investments   (522 )   (100 )   (220 )   (622 )   (112 )
Other income   2,059     2,818     1,787     4,877     4,237  
Total non-interest income   27,656     25,689     26,759     53,345     51,011  
Non-Interest Expense                    
Compensation and employee benefits   39,498     39,246     37,560     78,744     74,501  
Occupancy and equipment   6,560     6,646     6,443     13,206     13,119  
Advertising and promotions   2,169     1,973     2,085     4,142     4,210  
Data processing   3,411     3,124     3,938     6,535     7,311  
Other real estate owned   442     273     214     715     604  
Regulatory assessments and insurance   1,087     1,061     1,066     2,148     2,574  
Core deposit intangibles amortization   639     601     788     1,240     1,585  
Other expenses   11,503     10,420     12,367     21,923     22,913  
Total non-interest expense   65,309     63,344     64,461     128,653     126,817  
Income Before Income Taxes   45,592     41,009     40,943     86,601     78,977  
Federal and state income tax expense   11,905     9,754     10,492     21,659     19,844  
Net Income   $ 33,687     31,255     30,451     64,942     59,133  




Glacier Bancorp, Inc.
Average Balance Sheets
     
    Three Months ended
    June 30, 2017   June 30, 2016
(Dollars in thousands)   Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                        
Residential real estate loans   $ 738,309     $ 8,350     4.52 %   $ 731,432     $ 8,124     4.44 %
Commercial loans 1   4,729,848     57,709     4.89 %   3,902,007     47,956     4.94 %
Consumer and other loans   680,158     8,121     4.79 %   666,212     7,906     4.77 %
Total loans 2   6,148,315     74,180     4.84 %   5,299,651     63,986     4.86 %
Tax-exempt investment securities 3   1,201,746     17,154     5.71 %   1,348,520     19,274     5.72 %
Taxable investment securities 4   1,795,189     10,416     2.32 %   1,915,740     10,686     2.23 %
Total earning assets   9,145,250     101,750     4.46 %   8,563,911     93,946     4.41 %
Goodwill and intangibles   174,857             153,981          
Non-earning assets   393,574             390,457          
Total assets   $ 9,713,681             $ 9,108,349          
Liabilities                        
Non-interest bearing deposits   $ 2,118,776     $     %   $ 1,853,649     $     %
NOW and DDA accounts   1,624,246     282     0.07 %   1,494,950     271     0.07 %
Savings accounts   1,047,790     154     0.06 %   901,367     108     0.05 %
Money market deposit accounts   1,551,009     608     0.16 %   1,398,230     540     0.16 %
Certificate accounts   906,416     1,303     0.58 %   1,033,866     1,558     0.61 %
Wholesale deposits 5   313,511     2,154     2.76 %   326,364     2,083     2.57 %
FHLB advances   340,259     1,734     2.02 %   392,835     1,665     1.68 %
Repurchase agreements and  other borrowed funds   552,036     1,539     1.12 %   498,643     1,199     0.97 %
Total funding liabilities   8,454,043     7,774     0.37 %   7,899,904     7,424     0.38 %
Other liabilities   71,119             94,220          
Total liabilities   8,525,162             7,994,124          
Stockholders' Equity                        
Common stock   775             762          
Paid-in capital   780,891             736,876          
Retained earnings   405,772             365,385          
Accumulated other comprehensive income   1,081             11,202          
Total stockholders' equity   1,188,519             1,114,225          
Total liabilities and stockholders' equity   $ 9,713,681             $ 9,108,349          
Net interest income (tax-equivalent)       $ 93,976             $ 86,522      
Net interest spread (tax-equivalent)           4.09 %           4.03 %
Net interest margin (tax-equivalent)           4.12 %           4.06 %

__________
1    Includes tax effect of $1.5 million and $954 thousand on tax-exempt municipal loan and lease income for the three months ended June 30, 2017 and 2016, respectively.
2   Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale.  Non-accrual loans were included in the average volume for the entire period.
3    Includes tax effect of $5.9 million and $6.6 million on tax-exempt investment securities income for the three months ended June 30, 2017 and 2016, respectively.
4    Includes tax effect of $339 thousand and $352 thousand on federal income tax credits for the three months ended June 30, 2017 and 2016, 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, 2017
   June 30, 2016
(Dollars in thousands)   Average
Balance
  Interest &
Dividends
   Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
   Average
Yield/
Rate
Assets                        
Residential real estate loans   $ 723,950     $ 16,268     4.49 %   $ 728,851     $ 16,409     4.50 %
Commercial loans 1   4,552,062     109,044     4.83 %   3,825,968     93,291     4.90 %
Consumer and other loans   676,340     15,922     4.75 %   660,025     15,616     4.76 %
Total loans 2   5,952,352     141,234     4.78 %   5,214,844     125,316     4.83 %
Tax-exempt investment securities 3   1,223,431     34,915     5.71 %   1,350,601     38,656     5.72 %
Taxable investment securities 4   1,826,090     20,991     2.30 %   1,957,370     22,148     2.26 %
Total earning assets   9,001,873     197,140     4.42 %   8,522,815     186,120     4.39 %
Goodwill and intangibles   167,017             154,385          
Non-earning assets   381,492             390,675          
Total assets   $ 9,550,382             $ 9,067,875          
Liabilities                        
Non-interest bearing deposits   $ 2,045,124     $     %   $ 1,858,519     $     %
NOW and DDA accounts   1,600,221     529     0.07 %   1,480,065     564     0.08 %
Savings accounts   1,031,540     300     0.06 %   882,565     212     0.05 %
Money market deposit accounts   1,520,771     1,173     0.16 %   1,402,474     1,092     0.16 %
Certificate accounts   929,841     2,636     0.57 %   1,052,460     3,123     0.60 %
Wholesale deposits 5   322,831     4,303     2.69 %   330,745     4,364     2.65 %
FHLB advances   305,933     3,244     2.11 %   350,438     3,317     1.87 %
Repurchase agreements and other borrowed funds   557,303     2,955     1.07 %   510,104     2,427     0.96 %
Total funding liabilities   8,313,564     15,140     0.37 %   7,867,370     15,099     0.39 %
Other liabilities   76,241             95,461          
Total liabilities   8,389,805             7,962,831          
Stockholders' Equity                        
Common stock   771             761          
Paid-in capital   764,959             736,637          
Retained earnings   397,829             358,461          
Accumulated other comprehensive (loss) income   (2,982 )           9,185          
Total stockholders' equity   1,160,577             1,105,044          
Total liabilities and stockholders' equity   $ 9,550,382             $ 9,067,875          
Net interest income (tax-equivalent)       $ 182,000             $ 171,021      
Net interest spread (tax-equivalent)           4.05 %           4.00 %
Net interest margin (tax-equivalent)           4.08 %           4.04 %

__________
1    Includes tax effect of $2.9 million and $1.8 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2017 and 2016, respectively.
2   Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale.  Non-accrual loans were included in the average volume for the entire period.
3    Includes tax effect of $11.9 million and $13.2 million on tax-exempt investment securities income for the six months ended June 30, 2017 and 2016, respectively.
4    Includes tax effect of $677 thousand and $704 thousand on federal income tax credits for the six months ended June 30, 2017 and 2016, respectively.
5    Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.



Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
 
    Loans Receivable, by Loan Type   % Change from
(Dollars in thousands)   Jun 30,
 2017
  Mar 31,
 2017
  Dec 31,
 2016
  Jun 30,
 2016
  Mar 31,
 2017
  Dec 31,
 2016
  Jun 30,
 2016
Custom and owner occupied construction   $ 103,816     $ 92,835     $ 86,233     $ 78,525     12 %   20 %   32 %
Pre-sold and spec construction   76,553     68,736     66,184     59,530     11 %   16 %   29 %
Total residential construction   180,369     161,571     152,417     138,055     12 %   18 %   31 %
Land development   80,044     78,042     75,078     61,803     3 %   7 %   30 %
Consumer land or lots   107,124     94,840     97,449     95,247     13 %   10 %   12 %
Unimproved land   67,935     66,857     69,157     70,396     2 %   (2 )%   (3 )%
Developed lots for operative builders   12,337     13,046     13,254     13,845     (5 )%   (7 )%   (11 )%
Commercial lots   25,675     26,639     30,523     26,084     (4 )%   (16 )%   (2 )%
Other construction   307,547     272,184     257,769     206,343     13 %   19 %   49 %
Total land, lot, and other construction   600,662     551,608     543,230     473,718     9 %   11 %   27 %
Owner occupied   1,091,119     988,544     977,932     927,237     10 %   12 %   18 %
Non-owner occupied   1,148,831     964,913     929,729     835,272     19 %   24 %   38 %
Total commercial real estate   2,239,950     1,953,457     1,907,661     1,762,509     15 %   17 %   27 %
Commercial and industrial   769,105     739,475     686,870     705,011     4 %   12 %   9 %
Agriculture   457,286     411,094     407,208     421,097     11 %   12 %   9 %
1st lien   849,601     839,387     877,893     867,918     1 %   (3 )%   (2 )%
Junior lien   53,316     54,801     58,564     64,248     (3 )%   (9 )%   (17 )%
Total 1-4 family   902,917     894,188     936,457     932,166     1 %   (4 )%   (3 )%
Multifamily residential   172,523     162,636     184,068     198,583     6 %   (6 )%   (13 )%
Home equity lines of credit   419,940     405,309     402,614     388,939     4 %   4 %   8 %
Other consumer   155,098     153,159     155,193     156,568     1 %   %   (1 )%
Total consumer   575,038     558,468     557,807     545,507     3 %   3 %   5 %
Other   485,638     470,126     381,672     276,111     3 %   27 %   76 %
Total loans receivable, including  loans held for sale   6,383,488     5,902,623     5,757,390     5,452,757     8 %   11 %   17 %
Less loans held for sale 1   (37,726 )   (25,649 )   (72,927 )   (74,140 )   47 %   (48 )%   (49 )%
Total loans receivable   $ 6,345,762     $ 5,876,974     $ 5,684,463     $ 5,378,617     8 %   12 %   18 %
                                                   

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,
 2017
  Mar 31,
 2017
  Dec 31,
 2016
  Jun 30,
 2016
  Jun 30,
 2017
  Jun 30,
 2017
  Jun 30,
 2017
Custom and owner occupied construction   $ 177             390         177      
Pre-sold and spec construction   272     227     226         272          
Total residential construction   449     227     226     390     272     177      
Land development   8,428     8,856     9,864     12,830     1,202         7,226  
Consumer land or lots   1,868     1,728     2,137     1,656     543     324     1,001  
Unimproved land   11,933     12,017     11,905     12,147     8,098     52     3,783  
Developed lots for operative builders   116     116     175     176             116  
Commercial lots   1,559     1,255     1,466     1,979     115     258     1,186  
Other construction   151                         151  
Total land, lot and other construction   24,055     23,972     25,547     28,788     9,958     634     13,463  
Owner occupied   17,757     17,956     18,749     10,503     16,164         1,593  
Non-owner occupied   2,791     3,194     3,426     4,055     2,565         226  
Total commercial real estate   20,548     21,150     22,175     14,558     18,729         1,819  
Commercial and industrial   4,753     4,466     5,184     7,123     4,214     493     46  
Agriculture   2,877     1,878     1,615     3,979     2,877          
1st lien   9,057     10,047     9,186     11,332     7,444     966     647  
Junior lien   727     1,335     1,167     1,489     341     80     306  
Total 1-4 family   9,784     11,382     10,353     12,821     7,785     1,046     953  
Multifamily residential       388     400     432              
Home equity lines of credit   5,864     6,008     5,494     5,413     3,253     419     2,192  
Other consumer   551     202     391     275     95     429     27  
Total consumer   6,415     6,210     5,885     5,688     3,348     848     2,219  
Other       1,800         1,802              
Total   $ 68,881     71,473     71,385     75,581     47,183     3,198     18,500  



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,
 2017
  Mar 31,
 2017
  Dec 31,
 2016
  Jun 30,
 2016
  Mar 31,
 2017
  Dec 31,
 2016
  Jun 30,
 2016
Custom and owner occupied construction $ 493     $ 380     $ 1,836     $ 375     30 %   (73 )%   31 %
Pre-sold and spec construction 155     488         304     (68 )%   n/m   (49 )%
Total residential construction 648     868     1,836     679     (25 )%   (65 )%   (5 )%
Land development         154     37     n/m   (100 )%   (100 )%
Consumer land or lots 808     432     638     676     87 %   27 %   20 %
Unimproved land 1,115     938     1,442     879     19 %   (23 )%   27 %
Developed lots for operative builders             166     n/m   n/m   (100 )%
Commercial lots     258             (100 )%   n/m   n/m
Other construction     7,125             (100 )%   n/m   n/m
Total land, lot and other construction 1,923     8,753     2,234     1,758     (78 )%   (14 )%   9 %
Owner occupied 5,038     6,686     2,307     2,975     (25 )%   118 %   69 %
Non-owner occupied 6,533     405     1,689     5,364     1,513 %   287 %   22 %
Total commercial real estate 11,571     7,091     3,996     8,339     63 %   190 %   39 %
Commercial and industrial 5,825     6,796     3,032     4,956     (14 )%   92 %   18 %
Agriculture 1,067     3,567     1,133     804     (70 )%   (6 )%   33 %
1st lien 2,859     7,132     7,777     2,667     (60 )%   (63 )%   7 %
Junior lien 815     848     1,016     1,251     (4 )%   (20 )%   (35 )%
Total 1-4 family 3,674     7,980     8,793     3,918     (54 )%   (58 )%   (6 )%
Multifamily Residential 2,011     2,028     10         (1 )%   20,010 %   n/m
Home equity lines of credit 2,819     703     1,537     2,253     301 %   83 %   25 %
Other consumer 1,572     1,317     1,180     736     19 %   33 %   114 %
Total consumer 4,391     2,020     2,717     2,989     117 %   62 %   47 %
Other 14     57     1,866     36     (75 )%   (99 )%   (61 )%
Total $ 31,124     $ 39,160     $ 25,617     $ 23,479     (21 )%   21 %   33 %
                                                 
                                                 

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,
 2017
  Mar 31,
 2017
  Dec 31,
 2016
  Jun 30,
 2016
  Jun 30,
 2017
  Jun 30,
 2017
Custom and owner occupied construction   $         (1 )            
Pre-sold and spec construction   (15 )   (11 )   786     (37 )       15  
Total residential construction   (15 )   (11 )   785     (37 )       15  
Land development   (46 )   (33 )   (2,661 )   (2,342 )       46  
Consumer land or lots   (107 )   (57 )   (688 )   (351 )       107  
Unimproved land   (110 )   (96 )   (184 )   (46 )       110  
Developed lots for operative builders   (10 )   (5 )   (27 )   (54 )       10  
Commercial lots   (3 )   (2 )   27     21         3  
Other construction   390                 390      
Total land, lot and other construction   114     (193 )   (3,533 )   (2,772 )   390     276  
Owner occupied   853     795     1,196     (51 )   988     135  
Non-owner occupied   (2 )   (1 )   44     (3 )       2  
Total commercial real estate   851     794     1,240     (54 )   988     137  
Commercial and industrial   494     344     (370 )   (112 )   803     309  
Agriculture   14     (3 )   50     (1 )   17     3  
1st lien   (32 )   (15 )   487     245     44     76  
Junior lien   746     (16 )   60     (56 )   803     57  
Total 1-4 family   714     (31 )   547     189     847     133  
Multifamily residential   (229 )       229     229         229  
Home equity lines of credit   271     12     611     (25 )   421     150  
Other consumer   (8 )   (11 )   257     149     202     210  
Total consumer   263     1     868     124     623     360  
Other   2,100     1,043     2,642     313     5,150     3,050  
Total   $ 4,306     1,944     2,458     (2,121 )   8,818     4,512  


Visit our website at
www.glacierbancorp.com

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

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