Market Overview

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

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3rd Quarter 2017 Highlights:

  • Net income of $36.5 million for the current quarter, an increase of $5.5 million, or 18 percent, over the prior year third quarter net income of $31.0 million.
  • Current quarter diluted earnings per share of $0.47, an increase of 18 percent from the prior year third quarter diluted earnings per share of $0.40.
  • Loan growth of $164 million, or 10 percent annualized, for the current quarter.
  • Net interest margin of 4.11 percent as a percentage of earning assets, on a tax equivalent basis, an 11 basis point increase over the 4.00 percent net interest margin in the third quarter of the prior year.
  • Declared and paid a special dividend of $0.30 per share.  This was the 14th special dividend the Company has declared.
  • Declared and paid a regular quarterly dividend of $0.21 per share.  The dividend was the 130th consecutive quarterly dividend.
  • The Company announced the appointment of George R. Sutton as a Director of the Company.  Mr. Sutton is an experienced financial services attorney, a past board member of Synchrony Bank and the former Commissioner of the Utah Department of Financial Institutions.

Year-to-Date 2017 Highlights:

  • Net income of $101.4 million for the first nine months of 2017, an increase of $11.3 million, or 13 percent, over the first nine months of 2016 net income of $90.1 million.
  • Diluted earnings per share of $1.31, an increase of 11 percent from the prior year first nine months diluted earnings per share of $1.18.
  • Organic loan growth of $532 million, or 13 percent annualized, for the first nine months of the current year.
  • Net interest margin of 4.09 percent as a percentage of earning assets, on a tax equivalent basis, a 7 basis point increase over the 4.02 percent net interest margin in the first nine months of the prior year.
Financial Highlights        
    At or for the Three Months ended   At or for the Nine Months ended
(Dollars in thousands, except per share and market data)   Sep 30,
 2017
  Jun 30,
 2017
  Mar 31,
 2017
  Sep 30,
 2016
  Sep 30,
 2017
  Sep 30,
 2016
Operating results                        
Net income   $ 36,479     33,687     31,255     30,957     101,421     90,090  
Basic earnings per share   $ 0.47     0.43     0.41     0.40     1.31     1.18  
Diluted earnings per share   $ 0.47     0.43     0.41     0.40     1.31     1.18  
Dividends declared per share 1   $ 0.51     0.21     0.21     0.20     0.93     0.60  
Market value per share                        
Closing   $ 37.76     36.61     33.93     28.52     37.76     28.52  
High   $ 37.76     36.72     38.03     29.99     38.03     29.99  
Low   $ 31.50     32.06     32.47     25.49     31.50     22.19  
Selected ratios and other data                        
Number of common stock shares outstanding     78,006,956     78,001,890     76,619,952     76,525,402     78,006,956     76,525,402  
Average outstanding shares - basic     78,004,450     77,546,236     76,572,116     76,288,640     77,379,514     76,195,550  
Average outstanding shares - diluted     78,065,942     77,592,325     76,633,283     76,350,873     77,442,944     76,247,051  
Return on average assets (annualized)   1.46 %   1.39 %   1.35 %   1.34 %   1.40 %   1.32 %
Return on average equity (annualized)   11.87 %   11.37 %   11.19 %   10.80 %   11.49 %   10.77 %
Efficiency ratio   53.44 %   52.89 %   55.57 %   55.84 %   53.92 %   56.15 %
Dividend payout ratio 1   108.51 %   48.84 %   51.22 %   50.00 %   70.99 %   50.85 %
Loan to deposit ratio   84.43 %   81.86 %   78.91 %   77.53 %   84.43 %   77.53 %
Number of full time equivalent employees     2,250     2,265     2,224     2,207     2,250     2,207  
Number of locations     145     145     142     142     145     142  
Number of ATMs     200     199     195     200     200     200  
                         
             
                       
1 Includes a special dividend declared of $0.30 per share for the three and nine months ended September 30, 2017.
 

KALISPELL, Mont., Oct. 19, 2017 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $36.5 million for the current quarter, an increase of $5.5 million, or 18 percent, from the $31.0 million of net income for the prior year third quarter.  Diluted earnings per share for the current quarter was $0.47 per share, an increase of $0.07, or 18 percent, from the prior year third quarter diluted earnings per share of $0.40.  Included in the current quarter was $245 thousand of acquisition-related expenses.  "We are very pleased to see the strong results posted by our bank Divisions.  Our dedicated employees, across the Company, turned in a strong quarter with broad based growth," said Randy Chesler, President and Chief Executive Officer.

Net income for the nine months ended September 30, 2017 was $101.4 million, an increase of $11.3 million, or 13 percent, from the $90.1 million of net income for the first nine months of the prior year.  Diluted earnings per share for the first nine months of 2017 was $1.31 per share, an increase of $0.13, or 11 percent, from the diluted earnings per share of $1.18 for the same period in the prior year.

During the second quarter of  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 September 30, 2017, Collegiate had total assets of $536 million, gross loans of $331 million and total deposits of $460 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 be 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) Sep 30,
 2017
  Jun 30,
 2017
  Dec 31,
 2016
  Sep 30,
 2016
  Jun 30,
 2017
  Dec 31,
 2016
  Sep 30,
 2016
Cash and cash equivalents $ 220,210     237,590     152,541     251,413     (17,380 )   67,669     (31,203 )
Investment securities, available-for-sale 1,886,517     2,142,472     2,425,477     2,292,079     (255,955 )   (538,960 )   (405,562 )
Investment securities, held-to-maturity 655,128     659,347     675,674     679,707     (4,219 )   (20,546 )   (24,579 )
Total investment securities 2,541,645     2,801,819     3,101,151     2,971,786     (260,174 )   (559,506 )   (430,141 )
Loans receivable                          
Residential real estate 734,242     712,726     674,347     696,817     21,516     59,895     37,425  
Commercial real estate 3,503,976     3,393,753     2,990,141     2,919,415     110,223     513,835     584,561  
Other commercial 1,575,514     1,549,067     1,342,250     1,303,241     26,447     233,264     272,273  
Home equity 452,291     445,245     434,774     435,935     7,046     17,517     16,356  
Other consumer 243,410     244,971     242,951     240,554     (1,561 )   459     2,856  
Loans receivable 6,509,433     6,345,762     5,684,463     5,595,962     163,671     824,970     913,471  
Allowance for loan and lease losses (129,576 )   (129,877 )   (129,572 )   (132,534 )   301     (4 )   2,958  
Loans receivable, net 6,379,857     6,215,885     5,554,891     5,463,428     163,972     824,966     916,429  
Other assets 656,890     644,200     642,017     630,248     12,690     14,873     26,642  
Total assets $ 9,798,602     9,899,494     9,450,600     9,316,875     (100,892 )   348,002     481,727  
                                           

The Company is managing its asset size to stay below $10 billion through the remainder of the current year to delay the impact of the Durbin Amendment for one additional year.  The Company is accomplishing this strategy by redeploying investment cash flow selectively and selling securities into the higher yielding loan portfolio.  The Durbin Amendment, which was passed as part of Dodd-Frank, establishes limits on the amount of interchange fees that can be charged to merchants for debit card processing and will reduce the Company's service charges fee income in the future.

Total investment securities of $2.542 billion at September 30, 2017 decreased $260 million, or 9 percent, during the current quarter and decreased $430 million, or 14 percent, from the prior year third quarter.  Investment securities represented 26 percent of total assets at September 30, 2017 compared to 33 percent of total assets at December 31, 2016 and 32 percent of total assets at September 30, 2016.

The Company experienced another strong quarter for loan growth with an increase of $164 million, or 10 percent annualized, during the current quarter.  The loan category with the largest increase was commercial real estate loans which increased $110 million, or 3 percent.  Excluding the Foothills acquisition, the loan portfolio increased $621 million, or 11 percent, since September 30, 2016 with the primary increases coming from growth in commercial real estate and other commercial loans of $354 million and $244 million, respectively.

Credit Quality Summary              
  At or for the
Nine Months ended
  At or for the
Six Months ended
  At or for the
Year ended
  At or for the
Nine Months ended
(Dollars in thousands) Sep 30,
 2017
  Jun 30,
 2017
  Dec 31,
 2016
  Sep 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 7,938     4,611     2,333     1,194  
Charge-offs (14,801 )   (8,818 )   (11,496 )   (5,332 )
Recoveries 6,867     4,512     9,038     6,975  
Balance at end of period $ 129,576     129,877     129,572     132,534  
Other real estate owned $ 14,359     18,500     20,954     22,662  
Accruing loans 90 days or more past due 3,944     3,198     1,099     3,299  
Non-accrual loans 46,770     47,183     49,332     52,280  
Total non-performing assets $ 65,073     68,881     71,385     78,241  
Non-performing assets as a percentage of subsidiary assets 0.67 %   0.70 %   0.76 %   0.84 %
Allowance for loan and lease losses as a percentage of non-performing loans 256 %   258 %   257 %   238 %
Allowance for loan and lease losses as a percentage of total loans 1.99 %   2.05 %   2.28 %   2.37 %
Net charge-offs (recoveries) as a percentage of total loans 0.12 %   0.07 %   0.04 %   (0.03 )%
Accruing loans 30-89 days past due $ 29,115     31,124     25,617     27,384  
Accruing troubled debt restructurings $ 31,093     31,742     52,077     52,578  
Non-accrual troubled debt restructurings $ 22,134     25,418     21,693     23,427  
U.S. government guarantees included in non-performing assets $ 1,913     1,158     1,746     1,487  
                         

Non-performing assets at September 30, 2017 were $65.1 million, a decrease of $3.8 million, or 6 percent, from the prior quarter and a decrease of $13.2 million, or 17 percent, from a year ago.  Non-performing assets as a percentage of subsidiary assets at September 30, 2017 was 0.67 percent which was a decrease of 17 basis points from the prior year third quarter of 0.84 percent.  Early stage delinquencies (accruing loans 30-89 days past due) of $29.1 million at September 30, 2017 decreased $2.0 million from the prior quarter and increased $1.7 million from the prior year third quarter.  The allowance for loan and lease losses ("allowance") as a percent of total loans outstanding at September 30, 2017 was 1.99 percent, a decrease of 29 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
Third quarter 2017 $ 3,327     $ 3,628     1.99 %   0.45 %   0.67 %
Second quarter 2017 3,013     2,362     2.05 %   0.49 %   0.70 %
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 %
                             

Net charge-offs for the current quarter were $3.6 million compared to $2.4 million for the prior quarter and $478 thousand from the same quarter last year.  There was $3.3 million of current quarter provision for loan losses, compared to $3.0 million in the prior quarter and $626 thousand in the prior year third 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) Sep 30,
 2017
  Jun 30,
 2017
  Dec 31,
 2016
  Sep 30,
 2016
  Jun 30,
 2017
  Dec 31,
 2016
  Sep 30,
 2016
Deposits                          
Non-interest bearing deposits $ 2,355,983     2,234,058     2,041,852     2,098,747     121,925     314,131     257,236  
NOW and DDA accounts 1,733,353     1,717,351     1,588,550     1,514,330     16,002     144,803     219,023  
Savings accounts 1,081,056     1,059,717     996,061     938,547     21,339     84,995     142,509  
Money market deposit accounts 1,564,738     1,608,994     1,464,415     1,442,602     (44,256 )   100,323     122,136  
Certificate accounts 846,005     886,504     948,714     975,521     (40,499 )   (102,709 )   (129,516 )
Core deposits, total 7,581,135     7,506,624     7,039,592     6,969,747     74,511     541,543     611,388  
Wholesale deposits 186,019     291,339     332,687     339,572     (105,320 )   (146,668 )   (153,553 )
Deposits, total 7,767,154     7,797,963     7,372,279     7,309,319     (30,809 )   394,875     457,835  
Repurchase agreements 453,596     451,050     473,650     401,243     2,546     (20,054 )   52,353  
Federal Home Loan Bank advances 153,685     211,505     251,749     211,833     (57,820 )   (98,064 )   (58,148 )
Other borrowed funds 8,243     5,817     4,440     5,956     2,426     3,803     2,287  
Subordinated debentures 126,099     126,063     125,991     125,956     36     108     143  
Other liabilities 83,624     97,139     105,622     114,789     (13,515 )   (21,998 )   (31,165 )
Total liabilities $ 8,592,401     8,689,537     8,333,731     8,169,096     (97,136 )   258,670     423,305  
                                           

Core deposits increased $74.5 million, or 1 percent, from the prior quarter, with the largest increase in non-interest bearing deposits which increased $121.9 million, or 5 percent.  As part of the strategy to stay below $10 billion, the Company reduced the amount of wholesale deposits during the current quarter which decreased $105 million, or 36 percent, over the prior quarter.  Excluding the Foothills acquisition, core deposits increased $315 million, or 5 percent, from September 30, 2016.

Securities sold under agreements to repurchase ("repurchase agreements") of $454 million at September 30, 2017 increased $2.5 million, or 1 percent, from the prior quarter and increased $52.4 million, or 13 percent, from the prior year third quarter.  Federal Home Loan Bank ("FHLB") advances of $154 million at September 30, 2017 decreased $57.8 million from the prior quarter as a result of the Company prepaying $50 million of higher cost advances.

Stockholders' Equity Summary                  
                  $ Change from
(Dollars in thousands, except per share data) Sep 30,   Jun 30,   Dec 31,   Sep 30,   Jun 30,   Dec 31,   Sep 30,
2017 2017 2016 2016 2017 2016 2016
Common equity $ 1,201,534     1,204,258     1,124,251     1,130,941     (2,724 )   77,283     70,593  
Accumulated other comprehensive income (loss) 4,667     5,699     (7,382 )   16,838     (1,032 )   12,049     (12,171 )
Total stockholders' equity 1,206,201     1,209,957     1,116,869     1,147,779     (3,756 )   89,332     58,422  
Goodwill and core deposit intangible, net (192,609 )   (193,249 )   (159,400 )   (160,008 )   640     (33,209 )   (32,601 )
Tangible stockholders' equity $ 1,013,592     1,016,708     957,469     987,771     (3,116 )   56,123     25,821  
                                           
Stockholders' equity to total assets 12.31 %   12.22 %   11.82 %   12.32 %            
Tangible stockholders' equity to total tangible assets 10.55 %   10.47 %   10.31 %   10.79 %            
Book value per common share $ 15.46     15.51     14.59     15.00     (0.05 )   0.87     0.46  
Tangible book value per common share $ 12.99     13.03     12.51     12.91     (0.04 )   0.48     0.08  
                                           

Tangible stockholders' equity of $1.014 billion at September 30, 2017 was stable compared to the prior quarter which was the result of the Company declaring a special and regular quarterly dividend which offset the current quarter net income.  Tangible stockholders' equity increased $25.8 million, or 3 percent, from a year ago, the result of earnings retention and $46.7 million of Company stock issued in connection with the Foothills acquisition; 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 decreased $0.04 per share from the prior quarter and increased $0.08 per share from a year ago.

Cash Dividend
On September 11, 2017, the Company's Board of Directors declared a quarterly cash dividend of $0.21 per share and a special cash dividend of $0.30 per share.  The quarterly dividend was payable September 28, 2017 to shareholders of record on September 21, 2017.  The special dividend was payable September 29, 2017 to shareholders of record on September 22, 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 September 30, 2017
Compared to June 30, 2017, March 31, 2017 and September 30, 2016
 
Income Summary      
  Three Months ended   $ Change from
(Dollars in thousands) Sep 30,
 2017
  Jun 30,
 2017
  Mar 31,
 2017
  Sep 30,
 2016
  Jun 30,
 2017
  Mar 31,
 2017
  Sep 30,
 2016
Net interest income                          
Interest income $ 96,464     94,032     87,628     85,944     2,432     8,836     10,520  
Interest expense 7,652     7,774     7,366     7,318     (122 )   286     334  
Total net interest income 88,812     86,258     80,262     78,626     2,554     8,550     10,186  
Non-interest income                          
Service charges and other fees 17,307     17,495     15,633     16,307     (188 )   1,674     1,000  
Miscellaneous loan fees and charges 1,211     1,092     980     1,195     119     231     16  
Gain on sale of loans 9,141     7,532     6,358     9,592     1,609     2,783     (451 )
Gain (loss) on sale of investments 77     (522 )   (100 )   (594 )   599     177     671  
Other income 3,449     2,059     2,818     1,793     1,390     631     1,656  
Total non-interest income 31,185     27,656     25,689     28,293     3,529     5,496     2,892  
  $ 119,997     113,914     105,951     106,919     6,083     14,046     13,078  
Net interest margin (tax-equivalent) 4.11 %   4.12 %   4.03 %   4.00 %            
                                   

Net Interest Income
In the current quarter, interest income of $96.5 million increased $2.4 million, or 3 percent, from the prior quarter and increased $10.5 million, or 12 percent, over the prior year third quarter with both increases attributable to the increase in interest from commercial loans.  Interest income on commercial loans increased $3.7 million, or 7 percent, from the prior quarter and increased $12.2 million, or 26 percent, from the prior year third quarter.  As a result of the shrinking investment portfolio, interest income from investments decreased $1.4 million from the prior quarter and $1.8 million from the prior year third quarter.

The current quarter interest expense of $7.7 million decreased $122 thousand, or 2 percent, from the prior quarter and increased $334 thousand, or 5 percent, from the prior year third quarter.  The total cost of funding (including non-interest bearing deposits) for the current quarter was 35 basis points compared to 37 basis points for the prior quarter and 37 basis points for the prior year third quarter.

The Company's net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.11 percent compared to 4.12 percent in the prior quarter.  The 1 basis points decrease in the net interest margin was the result of a 3 basis points reduction on the earning asset yield which was partially offset by a 2 basis point reduction in cost of funds.  The decrease in earning asset yield was primarily driven by the decrease in higher yielding securities and the decrease in cost of funds was driven by an increase in non-interest bearing deposits and a decrease in borrowings.  The current quarter net interest margin increased 11 basis points over the prior year third quarter net interest margin of 4.00 percent, due to the remix of earning assets to higher yielding loans. "The Bank divisions have remained focused each quarter on increasing the number of checking accounts along with higher core deposit balances," said Ron Copher, Chief Financial Officer.  "Commercial loan growth at higher yields combined with increased non-interest bearing deposits helped to improve the net interest income and net interest margin in the current year."

Non-interest Income
Non-interest income for the current quarter totaled $31.2 million, an increase of $3.5 million, or 13 percent, from the prior quarter and an increase of $2.9 million, or 10 percent, over the same quarter last year.  Service charges and other fees of $17.3 million, decreased by $188 thousand, or 1 percent, from the prior quarter primarily from seasonal activity and increased $1.0 million, or 6 percent, from the prior year third quarter which was driven by the increased number of accounts.  Gain on sale of loans for the current quarter increased $1.6 million, or 21 percent, from the prior quarter and decreased $451 thousand, or 5 percent, from the prior year third quarter.  Other income of $3.4 million, increased $1.4 million, or 68 percent, over the prior quarter and increased $1.7 million, or 92 percent over the prior year third quarter principally due to the increase in gain on sale of other real estate owned ("OREO").  Gain on sale of OREO during the third quarter of 2017 was $1.5 million compared to $369 thousand in the prior quarter and $134 thousand in the prior year third quarter.

Non-interest Expense Summary    
  Three Months ended   $ Change from
(Dollars in thousands) Sep 30,
 2017
  Jun 30,
 2017
  Mar 31,
 2017
  Sep 30,
 2016
  Jun 30,
 2017
  Mar 31,
 2017
  Sep 30,
 2016
Compensation and employee benefits $ 41,297     39,498     39,246     38,370     1,799     2,051     2,927  
Occupancy and equipment 6,500     6,560     6,646     6,168     (60 )   (146 )   332  
Advertising and promotions 2,239     2,169     1,973     2,098     70     266     141  
Data processing 3,647     3,409     3,124     3,982     238     523     (335 )
Other real estate owned 817     442     273     215     375     544     602  
Regulatory assessments and insurance 1,214     1,087     1,061     1,158     127     153     56  
Core deposit intangibles amortization 640     639     601     777     1     39     (137 )
Other expenses 12,198     11,505     10,420     12,412     693     1,778     (214 )
Total non-interest expense $ 68,552     65,309     63,344     65,180     3,243     5,208     3,372  
                                           

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 $1.4 million during the third quarter of 2016. Excluding CCP expenses, non-interest expense for the current quarter increased $4.8 million, or 7 percent, over the prior year third quarter.

Compensation and employee benefits for the current quarter increased $1.8 million, or 5 percent, from the prior quarter as a result of increased cost of benefits, the Foothills acquisition, and a reduction in deferred compensation from loan production.  Compensation and employee benefits increased by $2.9 million, or 8 percent, from the prior year third quarter due to salary increases and the increased number of employees from acquisitions.  Data processing expense increased $238 thousand, or 7 percent, from the prior quarter.  Data processing expense decreased $335, or 8 percent, from the prior year third quarter as a result of decreased costs associated with CCP.  Other expenses increased $693 thousand, or 6 percent from the prior quarter with changes in several categories.  Other expense decreased $214 thousand, or 2 percent, from the prior year third quarter as a result of decreased costs associated with CCP.

Efficiency Ratio
The current quarter efficiency ratio was 53.44 percent, a 55 basis points increase from the prior quarter efficiency ratio of 52.89 percent which was the result of an increase in operating expenses that outpaced the increase in net interest income and non-interest income.  The current quarter efficiency ratio decreased 240 basis points from the prior year third quarter ratio of 55.84 percent and was attributable to the increase in net interest income primarily due to higher interest income on commercial loans.

Operating Results for Nine Months ended September 30, 2017
Compared to September 30, 2016
 
Income Summary
  Nine Months ended        
(Dollars in thousands) Sep 30,
 2017
  Sep 30,
 2016
  $ Change   % Change
Net interest income              
Interest income $ 278,124     $ 256,394     $ 21,730     8 %
Interest expense 22,792     22,417     375     2 %
Total net interest income 255,332     233,977     21,355     9 %
Non-interest income              
Service charges and other fees 50,435     46,760     3,675     8 %
Miscellaneous loan fees and charges 3,283     3,379     (96 )   (3 )%
Gain on sale of loans 23,031     23,841     (810 )   (3 )%
Loss on sale of investments (545 )   (706 )   161     (23 )%
Other income 8,326     6,030     2,296     38 %
Total non-interest income 84,530     79,304     5,226     7 %
  $ 339,862     $ 313,281     $ 26,581     8 %
Net interest margin (tax-equivalent) 4.09 %   4.02 %        
                   

Net Interest Income
Interest income for the first nine months of the current year increased $21.7 million, or 8 percent, from the prior year first nine months and was principally due to a $26.8 million increase in income from commercial loans which more than offset the decrease of $5.4 million in interest income on investments.

Interest expense of $22.8 million for the first nine months of the current year increased $375 thousand over the the same period in the prior year.  The total funding cost (including non-interest bearing deposits) for the first nine months of 2017 was 36 basis points compared to 38 basis points for the first nine months of 2016.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first nine months of 2017 was 4.09 percent, a 7 basis point increase from the net interest margin of 4.02 percent for the first nine 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 $84.5 million for the first nine months of 2017 increased $5.2 million, or 7 percent, over the same period last year.  Service charges and other fees of $50.4 million for the first nine months of 2017 increased $3.7 million, or 8 percent, from the same period last year as a result of an increased number of deposit accounts.  The gain on sale of loans of $23.0 million for the first nine months of 2017 decreased $810 thousand, or 3 percent, from the same period last year which was due to a lower volume of refinanced mortgages.  Other income of $8.3 million for the first nine months of 2017 increased $2.3 thousand, or 38 percent, over the same period last year and was the result of an increase on gain on sale of OREO.

Non-interest Expense Summary    
  Nine Months ended        
(Dollars in thousands) Sep 30,
 2017
  Sep 30,
 2016
  $ Change   % Change
Compensation and employee benefits $ 120,041     $ 112,871     $ 7,170     6 %
Occupancy and equipment 19,706     19,287     419     2 %
Advertising and promotions 6,381     6,308     73     1 %
Data processing 10,180     10,982     (802 )   (7 )%
Other real estate owned 1,532     819     713     87 %
Regulatory assessments and insurance 3,362     3,732     (370 )   (10 )%
Core deposit intangibles amortization 1,880     2,362     (482 )   (20 )%
Other expenses 34,123     35,636     (1,513 )   (4 )%
Total non-interest expense $ 197,205     $ 191,997     $ 5,208     3 %
                             

Expenses related to CCP were $3.6 million during the first nine months of 2016. Excluding CCP expenses, non-interest expense for the current year increased $8.8 million, or 5 percent, over the prior year.  Compensation and employee benefits for the first nine months of 2017 increased $7.2 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.  Data processing expense decreased $802 thousand, or 7 percent, from the prior year first nine months as a result of decreased costs associated with CCP.  Current year other expenses of $34.1 million decreased $1.5 million, 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 $7.9 million for the first nine months of 2017, an increase of $6.7 million from the same period in the prior year.  Net charge-offs during the first nine months of 2017 were $7.9 million compared to net recoveries of $1.6 million from the first nine months of 2016.

Efficiency Ratio
The efficiency ratio of 53.92 percent for the first nine months of 2017 decreased 223 basis points from the prior year efficiency ratio of 56.15 percent for the first nine 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 Federal Deposit Insurance Corporation and other third parties;
  • legislative or regulatory changes, including increased banking and consumer protection regulation that adversely affect the Company's business;
  • 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, October 20, 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 85315870.  To participate on the webcast, log on to: https://edge.media-server.com/m6/p/8udautgt. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 85315870 by November 3, 2017.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. 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, with operations in Idaho, Utah and Washington; 1st Bank, Evanston, operating in Wyoming and Utah; Citizens Community Bank, Pocatello, operating in Idaho; Bank of the San Juans, Durango, operating in Colorado; First Bank of Wyoming, Powell, and First State Bank, Wheatland, both operating in Wyoming; North Cascades Bank, Chelan, with operations in Washington; and The Foothills Bank, Yuma, with operations in Arizona.

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
 
(Dollars in thousands, except per share data) September 30,
 2017
  June 30,
 2017
  December 31,
 2016
  September 30,
 2016
Assets              
Cash on hand and in banks $ 136,822     163,913     135,268     129,727  
Federal funds sold 210             225  
Interest bearing cash deposits 83,178     73,677     17,273     121,461  
Cash and cash equivalents 220,210     237,590     152,541     251,413  
Investment securities, available-for-sale 1,886,517     2,142,472     2,425,477     2,292,079  
Investment securities, held-to-maturity 655,128     659,347     675,674     679,707  
Total investment securities 2,541,645     2,801,819     3,101,151     2,971,786  
Loans held for sale 48,709     37,726     72,927     71,069  
Loans receivable 6,509,433     6,345,762     5,684,463     5,595,962  
Allowance for loan and lease losses (129,576 )   (129,877 )   (129,572 )   (132,534 )
Loans receivable, net 6,379,857     6,215,885     5,554,891     5,463,428  
Premises and equipment, net 178,672     179,823     176,198     178,638  
Other real estate owned 14,359     18,500     20,954     22,662  
Accrued interest receivable 50,492     46,921     45,832     50,138  
Deferred tax asset 58,916     59,186     67,121     51,757  
Core deposit intangible, net 14,798     15,438     12,347     12,955  
Goodwill 177,811     177,811     147,053     147,053  
Non-marketable equity securities 21,890     23,995     25,550     20,103  
Other assets 91,243     84,800     74,035     75,873  
Total assets $ 9,798,602     9,899,494     9,450,600     9,316,875  
Liabilities              
Non-interest bearing deposits $ 2,355,983     2,234,058     2,041,852     2,098,747  
Interest bearing deposits 5,411,171     5,563,905     5,330,427     5,210,572  
Securities sold under agreements to repurchase 453,596     451,050     473,650     401,243  
FHLB advances 153,685     211,505     251,749     211,833  
Other borrowed funds 8,243     5,817     4,440     5,956  
Subordinated debentures 126,099     126,063     125,991     125,956  
Accrued interest payable 3,154     3,535     3,584     3,439  
Other liabilities 80,470     93,604     102,038     111,350  
Total liabilities 8,592,401     8,689,537     8,333,731     8,169,096  
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     780     765     765  
Paid-in capital 797,381     796,707     749,107     748,463  
Retained earnings - substantially restricted 403,373     406,771     374,379     381,713  
Accumulated other comprehensive income (loss) 4,667     5,699     (7,382 )   16,838  
Total stockholders' equity 1,206,201     1,209,957     1,116,869     1,147,779  
Total liabilities and stockholders' equity $ 9,798,602     9,899,494     9,450,600     9,316,875  


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 
  Three Months ended   Nine Months ended
(Dollars in thousands, except per share data) September 30,
 2017
  June 30,
 2017
  September 30,
 2016
  September 30,
 2017
  September 30,
 2016
Interest Income                  
Investment securities $ 19,987     21,379     21,827     63,305     68,747  
Residential real estate loans 8,326     8,350     8,538     24,594     24,947  
Commercial loans 59,875     56,182     47,694     166,027     139,199  
Consumer and other loans 8,276     8,121     7,885     24,198     23,501  
Total interest income 96,464     94,032     85,944     278,124     256,394  
Interest Expense                  
Deposits 4,564     4,501     4,550     13,505     13,905  
Securities sold under agreements to repurchase 537     443     289     1,362     882  
Federal Home Loan Bank advances 1,398     1,734     1,527     4,642     4,844  
Federal funds purchased and other borrowed funds 21     19     17     55     49  
Subordinated debentures 1,132     1,077     935     3,228     2,737  
Total interest expense 7,652     7,774     7,318     22,792     22,417  
Net Interest Income 88,812     86,258     78,626     255,332     233,977  
Provision for loan losses 3,327     3,013     626     7,938     1,194  
Net interest income after provision for loan losses 85,485     83,245     78,000     247,394     232,783  
Non-Interest Income                  
Service charges and other fees 17,307     17,495     16,307     50,435     46,760  
Miscellaneous loan fees and charges 1,211     1,092     1,195     3,283     3,379  
Gain on sale of loans 9,141     7,532     9,592     23,031     23,841  
Gain (loss) on sale of investments 77     (522 )   (594 )   (545 )   (706 )
Other income 3,449     2,059     1,793     8,326     6,030  
Total non-interest income 31,185     27,656     28,293     84,530     79,304  
Non-Interest Expense                  
Compensation and employee benefits 41,297     39,498     38,370     120,041     112,871  
Occupancy and equipment 6,500     6,560     6,168     19,706     19,287  
Advertising and promotions 2,239     2,169     2,098     6,381     6,308  
Data processing 3,647     3,409     3,982     10,180     10,982  
Other real estate owned 817     442     215     1,532     819  
Regulatory assessments and insurance 1,214     1,087     1,158     3,362     3,732  
Core deposit intangibles amortization 640     639     777     1,880     2,362  
Other expenses 12,198     11,505     12,412     34,123     35,636  
Total non-interest expense 68,552     65,309     65,180     197,205     191,997  
Income Before Income Taxes 48,118     45,592     41,113     134,719     120,090  
Federal and state income tax expense 11,639     11,905     10,156     33,298     30,000  
Net Income $ 36,479     33,687     30,957     101,421     90,090  


Glacier Bancorp, Inc.
Average Balance Sheets
 
  Three Months ended
  September 30, 2017   September 30, 2016
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 771,342     $ 8,326     4.32 %   $ 752,723     $ 8,538     4.54 %
Commercial loans 1 4,968,989     61,560     4.92 %   4,092,627     48,817     4.75 %
Consumer and other loans 688,294     8,276     4.77 %   678,415     7,885     4.62 %
Total loans 2 6,428,625     78,162     4.82 %   5,523,765     65,240     4.70 %
Tax-exempt investment securities 3 1,106,288     15,678     5.67 %   1,311,616     18,764     5.72 %
Taxable investment securities 4 1,757,102     9,961     2.27 %   1,774,209     9,813     2.21 %
Total earning assets 9,292,015     103,801     4.43 %   8,609,590     93,817     4.33 %
Goodwill and intangibles 192,937             155,347          
Non-earning assets 411,248             398,463          
Total assets $ 9,896,200             $ 9,163,400          
Liabilities                      
Non-interest bearing deposits $ 2,274,387     $     %   $ 1,973,648     $     %
NOW and DDA accounts 1,720,374     465     0.11 %   1,501,944     244     0.06 %
Savings accounts 1,071,674     160     0.06 %   934,911     119     0.05 %
Money market deposit accounts 1,596,170     624     0.16 %   1,425,655     543     0.15 %
Certificate accounts 866,094     1,275     0.58 %   986,411     1,482     0.60 %
Wholesale deposits 5 297,768     2,040     2.72 %   345,287     2,162     2.49 %
FHLB advances 197,458     1,398     2.77 %   259,216     1,527     2.30 %
Repurchase agreements and other borrowed funds 562,169     1,690     1.19 %   502,391     1,241     0.98 %
Total funding liabilities 8,586,094     7,652     0.35 %   7,929,463     7,318     0.37 %
Other liabilities 89,898             93,250          
Total liabilities 8,675,992             8,022,713          
Stockholders' Equity                      
Common stock 780             762          
Paid-in capital 797,011             741,072          
Retained earnings 418,034             381,197          
Accumulated other comprehensive income 4,383             17,656          
Total stockholders' equity 1,220,208             1,140,687          
Total liabilities and stockholders' equity $ 9,896,200             $ 9,163,400          
Net interest income (tax-equivalent)     $ 96,149             $ 86,499      
Net interest spread (tax-equivalent)         4.08 %           3.96 %
Net interest margin (tax-equivalent)         4.11 %           4.00 %
                 
                         
Includes tax effect of $1.7 million and $1.1 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2017 and 2016, respectively.
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.
Includes tax effect of $5.3 million and $6.4 million on tax-exempt investment securities income for the three months ended September 30, 2017 and 2016, respectively.
Includes tax effect of $304 thousand and $352 thousand on federal income tax credits for the three months ended September 30, 2017 and 2016, respectively.
Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.
 


Glacier Bancorp, Inc.
Average Balance Sheets (continued)
 
  Nine Months ended
  September 30, 2017   September 30, 2016
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 739,921     $ 24,594     4.43 %   $ 736,866     $ 24,947     4.51 %
Commercial loans 1 4,692,565     170,604     4.86 %   3,915,503     142,108     4.85 %
Consumer and other loans 680,368     24,198     4.76 %   666,200     23,501     4.71 %
Total loans 2 6,112,854     219,396     4.80 %   5,318,569     190,556     4.79 %
Tax-exempt investment securities 3 1,183,954     50,593     5.70 %   1,337,511     57,420     5.72 %
Taxable investment securities 4 1,802,842     30,952     2.29 %   1,895,871     31,961     2.25 %
Total earning assets 9,099,650     300,941     4.42 %   8,551,951     279,937     4.37 %
Goodwill and intangibles 175,752             154,708          
Non-earning assets 391,519             393,290          
Total assets $ 9,666,921             $ 9,099,949          
Liabilities                      
Non-interest bearing deposits $ 2,122,385     $     %   $ 1,897,176     $     %
NOW and DDA accounts 1,640,712     994     0.08 %   1,487,413     808     0.07 %
Savings accounts 1,045,065     460     0.06 %   900,141     331     0.05 %
Money market deposit accounts 1,546,181     1,797     0.16 %   1,410,257     1,635     0.15 %
Certificate accounts 908,359     3,911     0.58 %   1,030,283     4,605     0.60 %
Wholesale deposits 5 314,385     6,343     2.70 %   335,628     6,526     2.60 %
FHLB advances 269,377     4,642     2.27 %   319,808     4,844     1.99 %
Repurchase agreements and other borrowed funds 558,943     4,645     1.11 %   507,514     3,668     0.97 %
Total funding liabilities 8,405,407     22,792     0.36 %   7,888,220     22,417     0.38 %
Other liabilities 80,841             94,718          
Total liabilities 8,486,248             7,982,938          
Stockholders' Equity                      
Common stock 774             762          
Paid-in capital 775,761             738,126          
Retained earnings 404,638             366,094          
Accumulated other comprehensive (loss) income (500 )           12,029          
Total stockholders' equity 1,180,673             1,117,011          
Total liabilities and stockholders' equity $ 9,666,921             $ 9,099,949          
Net interest income (tax-equivalent)     $ 278,149             $ 257,520      
Net interest spread (tax-equivalent)         4.06 %           3.99 %
Net interest margin (tax-equivalent)         4.09 %           4.02 %
             
                         
Includes tax effect of $4.6 million and $2.9 million on tax-exempt municipal loan and lease income for the nine months ended September 30, 2017 and 2016, respectively.
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.
Includes tax effect of $17.3 million and $19.6 million on tax-exempt investment securities income for the nine months ended September 30, 2017 and 2016, respectively.
Includes tax effect of $981 thousand and $1.1 million on federal income tax credits for the nine months ended September 30, 2017 and 2016, 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) Sep 30,
 2017
  Jun 30,
 2017
  Dec 31,
 2016
  Sep 30,
 2016
  Jun 30,
 2017
  Dec 31,
 2016
  Sep 30,
 2016
Custom and owner occupied construction $ 106,615     $ 103,816     $ 86,233     $ 82,935     3 %   24 %   29 %
Pre-sold and spec construction 82,023     76,553     66,184     66,812     7 %   24 %   23 %
Total residential construction 188,638     180,369     152,417     149,747     5 %   24 %   26 %
Land development 83,414     80,044     75,078     68,597     4 %   11 %   22 %
Consumer land or lots 99,866     107,124     97,449     96,798     (7 )%   2 %   3 %
Unimproved land 64,610     67,935     69,157     69,880     (5 )%   (7 )%   (8 )%
Developed lots for operative builders 12,830     12,337     13,254     13,256     4 %   (3 )%   (3 )%
Commercial lots 25,984     25,675     30,523     27,512     1 %   (15 )%   (6 )%
Other construction 367,060     307,547     257,769     246,753     19 %   42 %   49 %
Total land, lot, and other construction 653,764     600,662     543,230     522,796     9 %   20 %   25 %
Owner occupied 1,109,796     1,091,119     977,932     963,063     2 %   13 %   15 %
Non-owner occupied 1,180,976     1,148,831     929,729     890,981     3 %   27 %   33 %
Total commercial real estate 2,290,772     2,239,950     1,907,661     1,854,044     2 %   20 %   24 %
Commercial and industrial 766,970     769,105     686,870     697,598     %   12 %   10 %
Agriculture 468,168     457,286     407,208     425,645     2 %   15 %   10 %
1st lien 873,061     849,601     877,893     883,034     3 %   (1 )%   (1 )%
Junior lien 53,337     53,316     58,564     61,788     %   (9 )%   (14 )%
Total 1-4 family 926,398     902,917     936,457     944,822     3 %   (1 )%   (2 )%
Multifamily residential 185,891     172,523     184,068     204,395     8 %   1 %   (9 )%
Home equity lines of credit 429,483     419,940     402,614     399,446     2 %   7 %   8 %
Other consumer 153,363     155,098     155,193     154,547     (1 )%   (1 )%   (1 )%
Total consumer 582,846     575,038     557,807     553,993     1 %   4 %   5 %
Other 494,695     485,638     381,672     313,991     2 %   30 %   58 %
Total loans receivable, including loans held for sale 6,558,142     6,383,488     5,757,390     5,667,031     3 %   14 %   16 %
Less loans held for sale 1 (48,709 )   (37,726 )   (72,927 )   (71,069 )   29 %   (33 )%   (31 )%
Total loans receivable $ 6,509,433     $ 6,345,762     $ 5,684,463     $ 5,595,962     3 %   15 %   16 %
 
               
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) Sep 30,
 2017
  Jun 30,
 2017
  Dec 31,
 2016
  Sep 30,
 2016
  Sep 30,
 2017
  Sep 30,
 2017
  Sep 30,
 2017
Custom and owner occupied construction $ 177     177         375         177      
Pre-sold and spec construction 267     272     226     250     267          
Total residential construction 444     449     226     625     267     177      
Land development 8,116     8,428     9,864     11,717     1,118         6,998  
Consumer land or lots 2,451     1,868     2,137     2,196     1,517     44     890  
Unimproved land 10,320     11,933     11,905     12,068     8,086         2,234  
Developed lots for operative builders 116     116     175     175             116  
Commercial lots 1,374     1,559     1,466     2,165     258         1,116  
Other construction 151     151                     151  
Total land, lot and other construction 22,528     24,055     25,547     28,321     10,979     44     11,505  
Owner occupied 14,207     17,757     18,749     19,970     12,435     400     1,372  
Non-owner occupied 4,251     2,791     3,426     4,005     3,863         388  
Total commercial real estate 18,458     20,548     22,175     23,975     16,298     400     1,760  
Commercial and industrial 5,190     4,753     5,184     5,175     5,033     111     46  
Agriculture 3,998     2,877     1,615     2,329     3,352     646      
1st lien 7,688     9,057     9,186     9,333     6,868     523     297  
Junior lien 591     727     1,167     1,335     448     94     49  
Total 1-4 family 8,279     9,784     10,353     10,668     7,316     617     346  
Multifamily residential         400     432              
Home equity lines of credit 4,151     5,864     5,494     4,734     3,381     130     640  
Other consumer 225     551     391     182     144     19     62  
Total consumer 4,376     6,415     5,885     4,916     3,525     149     702  
Other 1,800             1,800         1,800      
Total $ 65,073     68,881     71,385     78,241     46,770     3,944     14,359  


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
 
  Accruing 30-89 Days Delinquent Loans, by Loan Type   % Change from
(Dollars in thousands) Sep 30,
 2017
  Jun 30,
 2017
  Dec 31,
 2016
  Sep 30,
 2016
  Jun 30,
 2017
  Dec 31,
 2016
  Sep 30,
 2016
Custom and owner occupied construction $ 415     $ 493     $ 1,836     $ 65     (16 )%   (77 )%   538 %
Pre-sold and spec construction 451     155             191 %   n/m     n/m  
Total residential construction 866     648     1,836     65     34 %   (53 )%   1,232 %
Land development 5         154         n/m     (97 )%   n/m  
Consumer land or lots 615     808     638     130     (24 )%   (4 )%   373 %
Unimproved land 621     1,115     1,442     857     (44 )%   (57 )%   (28 )%
Commercial lots 15                 n/m     n/m     n/m  
Other construction             7,125     n/m     n/m     (100 )%
Total land, lot and other construction 1,256     1,923     2,234     8,112     (35 )%   (44 )%   (85 )%
Owner occupied 4,450     5,038     2,307     586     (12 )%   93 %   659 %
Non-owner occupied 5,502     6,533     1,689     5,830     (16 )%   226 %   (6 )%
Total commercial real estate 9,952     11,571     3,996     6,416     (14 )%   149 %   55 %
Commercial and industrial 5,784     5,825     3,032     4,038     (1 )%   91 %   43 %
Agriculture 780     1,067     1,133     989     (27 )%   (31 )%   (21 )%
1st lien 2,973     2,859     7,777     3,439     4 %   (62 )%   (14 )%
Junior lien 3,463     815     1,016     977     325 %   241 %   254 %
Total 1-4 family 6,436     3,674     8,793     4,416     75 %   (27 )%   46 %
Multifamily Residential 237     2,011     10         (88 )%   2,270 %   n/m  
Home equity lines of credit 2,065     2,819     1,537     2,383     (27 )%   34 %   (13 )%
Other consumer 1,735     1,572     1,180     943     10 %   47 %   84 %
Total consumer 3,800     4,391     2,717     3,326     (13 )%   40 %   14 %
Other 4     14     1,866     22     (71 )%   (100 )%   (82 )%
Total $ 29,115     $ 31,124     $ 25,617     $ 27,384     (6 )%   14 %   6 %
 
           
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) Sep 30,
 2017
  Jun 30,
 2017
  Dec 31,
 2016
  Sep 30,
 2016
  Sep 30,
 2017
  Sep 30,
 2017
Custom and owner occupied construction $ 58         (1 )       62     4  
Pre-sold and spec construction (19 )   (15 )   786     (39 )       19  
Total residential construction 39     (15 )   785     (39 )   62     23  
Land development (67 )   (46 )   (2,661 )   (2,372 )       67  
Consumer land or lots (150 )   (107 )   (688 )   (487 )   6     156  
Unimproved land (177 )   (110 )   (184 )   (114 )       177  
Developed lots for operative builders (16 )   (10 )   (27 )   (23 )       16  
Commercial lots (4 )   (3 )   27     29         4  
Other construction 390     390             390      
Total land, lot and other construction (24 )   114     (3,533 )   (2,967 )   396     420  
Owner occupied 3,416     853     1,196     (354 )   4,036     620  
Non-owner occupied 214     (2 )   44     9     217     3  
Total commercial real estate 3,630     851     1,240     (345 )   4,253     623  
Commercial and industrial 429     494     (370 )   (643 )   875     446  
Agriculture (11 )   14     50     (29 )   17     28  
1st lien (201 )   (32 )   487     132     100     301  
Junior lien 746     746     60     (15 )   812     66  
Total 1-4 family 545     714     547     117     912     367  
Multifamily residential (229 )   (229 )   229     229         229  
Home equity lines of credit 262     271     611     450     436     174  
Other consumer 98     (8 )   257     255     369     271  
Total consumer 360     263     868     705     805     445  
Other 3,195     2,100     2,642     1,329     7,481     4,286  
Total $ 7,934     4,306     2,458     (1,643 )   14,801     6,867  
                                     

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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