Market Overview

Glacier Bancorp, Inc. Announces Results for the Quarter Ended June 30, 2018

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2nd Quarter 2018 Highlights:

  • Net income of $44.4 million for the current quarter, an increase of $10.7 million, or 32 percent, over the prior year second quarter net income of $33.7 million.  Pre-tax income of $53.9 million for the current quarter, an increase of $8.3 million, or 18 percent, over the prior year second quarter pre-tax income of $45.6 million.
  • Current quarter diluted earnings per share of $0.52, an increase of 8 percent from the prior quarter, and an increase of 21 percent from the prior year second quarter diluted earnings per share of $0.43.
  • Current quarter loan growth of $279 million, or 15 percent annualized.
  • Current quarter non-interest bearing deposits increased $103 million, or 15 percent annualized.
  • Net interest margin of 4.17 percent as a percentage of earning assets, on a tax equivalent basis, a 5 basis points increase over the 4.12 percent net interest margin in the prior year second quarter.
  • Dividend declared of $0.26 per share, an increase of $0.03 per share, or 13 percent, over the prior quarter.  The dividend was the 133rd consecutive quarterly dividend.
  • The Company successfully completed the conversion of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank.
  • The Company announced appointment of David C. Boyles as a Director of the Company.  Mr Boyles is a banker with over 45 years of banking experience in Colorado and has served as Chairman of the Board of Columbine Corp. and President of Guarantee Bank and Trust.

First Half of 2018 Highlights:

  • Net income of $82.9 million for the first half of 2018, an increase of $18.0 million, or  28 percent, over the first half of 2017 net income of $64.9 million.  Pre-tax income of $100.8 million for the first half of 2018, an increase of $14.2 million, or 16 percent, over the first half of 2017 pre-tax income of $86.6 million.
  • Diluted earnings per share of $1.00, an increase of 19 percent from the prior year first six months diluted earnings per share of $0.84.
  • Organic loan growth of $389 million, or 12 percent annualized, for the first six months of the current year.
  • Net interest margin of 4.14 percent as a percentage of earning assets, on a tax equivalent basis, a 6 basis points increase over the 4.08 percent net interest margin in the first six months of the prior year.
  • Dividend declared of $0.49 per share, an increase of $0.07 per share, or 17 percent, over the prior year first six months.
  • The Company completed the acquisition of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado, with total assets of $551 million.
  • The Company completed the acquisition of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank in Bozeman, Montana, with total assets of $1.110 billion.

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,
 2018
  Mar 31,
 2018
  Jun 30,
 2017
  Jun 30,
 2018
  Jun 30,
 2017
Operating results                  
Net income $ 44,384   38,559   33,687   82,943   64,942
Basic earnings per share $ 0.53   0.48   0.43   1.00   0.84
Diluted earnings per share $ 0.52   0.48   0.43   1.00   0.84
Dividends declared per share $ 0.26   0.23   0.21   0.49   0.42
Market value per share                  
Closing $ 38.68   38.38   36.61   38.68   36.61
High $ 41.47   41.24   37.41   41.47   38.17
Low $ 35.77   36.72   31.56   35.77   31.56
Selected ratios and other data                  
Number of common stock shares outstanding 84,516,650   84,511,472   78,001,890   84,516,650   78,001,890
Average outstanding shares - basic 84,514,257   80,808,904   77,546,236   82,671,816   77,061,867
Average outstanding shares - diluted 84,559,268   80,887,135   77,592,325   82,734,407   77,125,677
Return on average assets (annualized) 1.53%   1.50%   1.39%   1.52%   1.37%
Return on average equity (annualized) 12.07%   11.90%   11.37%   11.99%   11.28%
Efficiency ratio 55.44%   57.80%   52.89%   56.54%   54.17%
Dividend payout ratio 49.06%   47.92%   48.84%   49.00%   50.00%
Loan to deposit ratio 84.92%   81.83%   81.86%   84.92%   81.86%
Number of full time equivalent employees 2,605   2,545   2,265   2,605   2,265
Number of locations 167   166   145   167   145
Number of ATMs 221   223   199   221   199
                   

KALISPELL, Mont., July 19, 2018 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $44.4 million for the current quarter, an increase of $10.7 million, or 32 percent, from the $33.7 million of net income for the prior year second quarter.  Diluted earnings per share for the current quarter was $0.52 per share, an increase of $0.09, or 21 percent, from the prior year second quarter diluted earnings per share of $0.43.  Included in the current quarter was $2.9 million of acquisition-related expenses.  "We were very pleased to see our business really pick up speed later in the current quarter.  This resulted in strong second quarter and year to date performance across the board.  The strength of our Western markets and the Glacier team once again exceeded expectations," said Randy Chesler, President and Chief Executive Officer.

Net income for the six months ended June 30, 2018 was $82.9 million, an increase of $18.0 million, or 28 percent, from the $64.9 million of net income for the first six months of the prior year.  Diluted earnings per share for the first half of 2018 was $1.00 per share, an increase of $0.16, or 19 percent, from the diluted earnings per share of $0.84 for the same period in the prior year.

On February 28, 2018, the Company completed the acquisition of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank in Bozeman, Montana (collectively, "FSB").  On January 31, 2018, the Company completed the acquisition of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado (collectively, "Collegiate").  The Company's results of operations and financial condition include the acquisitions beginning on the acquisition dates and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:

  FSB   Collegiate    
(Dollars in thousands) February 28,
 2018
  January 31,
 2018
  Total
Total assets $ 1,109,684     551,198     1,660,882  
Debt securities 271,865     42,177     314,042  
Loans receivable 627,767     354,252     982,019  
Non-interest bearing deposits 301,468     170,022     471,490  
Interest bearing deposits 576,118     267,149     843,267  
Borrowings 36,880     12,509     49,389  
                 

Asset Summary

                  $ Change from
(Dollars in thousands) Jun 30,
 2018
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
Cash and cash equivalents $ 368,132     451,048     200,004     237,590     (82,916 )   168,128     130,542  
Debt securities, available-for-sale 2,177,352     2,154,845     1,778,243     2,142,472     22,507     399,109     34,880  
Debt securities, held-to-maturity 620,409     634,413     648,313     659,347     (14,004 )   (27,904 )   (38,938 )
Total debt securities 2,797,761     2,789,258     2,426,556     2,801,819     8,503     371,205     (4,058 )
Loans receivable                          
Residential real estate 835,382     831,021     720,728     712,726     4,361     114,654     122,656  
Commercial real estate 4,384,781     4,251,003     3,577,139     3,393,753     133,778     807,642     991,028  
Other commercial 1,940,435     1,839,293     1,579,353     1,549,067     101,142     361,082     391,368  
Home equity 511,043     489,879     457,918     445,245     21,164     53,125     65,798  
Other consumer 277,031     258,834     242,686     244,971     18,197     34,345     32,060  
Loans receivable 7,948,672     7,670,030     6,577,824     6,345,762     278,642     1,370,848     1,602,910  
Allowance for loan and lease losses (131,564 )   (127,608 )   (129,568 )   (129,877 )   (3,956 )   (1,996 )   (1,687 )
Loans receivable, net 7,817,108     7,542,422     6,448,256     6,215,885     274,686     1,368,852     1,601,223  
 
Other assets 914,643     876,050     631,533     644,200     38,593     283,110     270,443  
Total assets $ 11,897,644     11,658,778     9,706,349     9,899,494     238,866     2,191,295     1,998,150  
 

Total debt securities of $2.798 billion at June 30, 2018 increased $8.5 million, or 30 basis points, during the current quarter and decreased $4.1 million, or 14 basis points, from the prior year second quarter.  Debt securities represented 24 percent of total assets at June 30, 2018 compared to 28 percent of total assets at June 30, 2017.

The Company had a successful quarter in loan growth and the loan portfolio of $7.9 billion increased $279 million, or 15 percent annualized, during the current quarter.  The loan category with the largest increase was commercial real estate loans which increased $134 million, or 3 percent.  Excluding the FSB and Collegiate acquisitions, the loan portfolio increased $621 million, or 10 percent, since June 30, 2017 and was primarily driven by growth in commercial real estate loans, which increased $373 million, or 11 percent.


Credit Quality Summary

  At or for the
Six Months ended
  At or for the
Three Months ended
  At or for the
Year ended
  At or for the
Six Months ended
(Dollars in thousands) Jun 30,
 2018
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
Allowance for loan and lease losses              
Balance at beginning of period $ 129,568     129,568     129,572     129,572  
Provision for loan losses 5,513     795     10,824     4,611  
Charge-offs (7,611 )   (5,007 )   (19,331 )   (8,818 )
Recoveries 4,094     2,252     8,503     4,512  
Balance at end of period $ 131,564     127,608     129,568     129,877  
                         
Other real estate owned $ 13,616     14,132     14,269     18,500  
Accruing loans 90 days or more past due 12,751     5,402     6,077     3,198  
Non-accrual loans 58,170     54,449     44,833     47,183  
Total non-performing assets $ 84,537     73,983     65,179     68,881  
                       
Non-performing assets as a percentage of subsidiary assets 0.71 %   0.64 %   0.68 %   0.70 %
Allowance for loan and lease losses as a percentage of non-performing loans 186 %   213 %   255 %   258 %
Allowance for loan and lease losses as a percentage of total loans 1.66 %   1.66 %   1.97 %   2.05 %
Net charge-offs as a percentage of total loans 0.04 %   0.04 %   0.17 %   0.07 %
Accruing loans 30-89 days past due $ 39,650     44,963     37,687     31,124  
Accruing troubled debt restructurings $ 34,991     41,649     38,491     31,742  
Non-accrual troubled debt restructurings $ 18,380     13,289     23,709     25,418  
U.S. government guarantees included in non-performing assets $ 7,265     4,548     2,513     1,158  
                         

Non-performing assets at June 30, 2018 were $84.5 million, an increase of $10.6 million, or 14 percent, from the prior quarter and an increase of $15.7 million, or 23 percent, from the prior year second quarter.  Non-performing assets as a percentage of subsidiary assets at June 30, 2018 was 0.71 percent, an increase of 7 basis points from the prior quarter, and an increase of 1 basis point from the prior year second quarter.  Early stage delinquencies (accruing loans 30-89 days past due) of $39.7 million at June 30, 2018 decreased $5.3 million from the prior quarter and early stage delinquencies as a percentage of loans at June 30, 2018 was 0.50 percent which was a decrease of 9 basis points from the prior quarter and a 1 basis point increase from prior year second quarter.  The allowance for loan and lease losses ("allowance") as a percent of total loans outstanding at June 30, 2018 was 1.66 percent, which was stable compared to the prior quarter and a decrease of 31 basis points from 1.97 percent at December 31, 2017.  This decrease was primarily driven by the addition of loans from new acquisitions, as they are added to the portfolio on a fair value basis and as a result do not require an allowance.


Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands) Provision
for Loan
Losses
  Net
Charge-Offs
  ALLL
as a Percent
of Loans
  Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
  Non-Performing
Assets to
Total Subsidiary
Assets
Second quarter 2018 $ 4,718   $ 762   1.66%   0.50%   0.71%
First quarter 2018 795   2,755   1.66%   0.59%   0.64%
Fourth quarter 2017 2,886   2,894   1.97%   0.57%   0.68%
Third quarter 2017 3,327   3,628   1.99%   0.45%   0.67%
Second quarter 2017 3,013   2,362   2.05%   0.49%   0.70%
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%
                   

Net charge-offs for the current quarter were $762 thousand compared to $2.8 million for the prior quarter and $2.4 million from the same quarter last year.  Current quarter provision for loan losses was $4.7 million, compared to $795 thousand in the prior quarter and $3.0 million 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,
 2018
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
Deposits                          
Non-interest bearing deposits $ 2,914,885     2,811,469     2,311,902     2,234,058     103,416     602,983     680,827  
NOW and DDA accounts 2,354,214     2,400,693     1,695,246     1,717,351     (46,479 )   658,968     636,863  
Savings accounts 1,330,637     1,328,047     1,082,604     1,059,717     2,590     248,033     270,920  
Money market deposit accounts 1,723,681     1,778,068     1,512,693     1,608,994     (54,387 )   210,988     114,687  
Certificate accounts 927,608     955,105     817,259     886,504     (27,497 )   110,349     41,104  
Core deposits, total 9,251,025     9,273,382     7,419,704     7,506,624     (22,357 )   1,831,321     1,744,401  
Wholesale deposits 172,550     145,463     160,043     291,339     27,087     12,507     (118,789 )
Deposits, total 9,423,575     9,418,845     7,579,747     7,797,963     4,730     1,843,828     1,625,612  
Repurchase agreements 361,515     395,794     362,573     451,050     (34,279 )   (1,058 )   (89,535 )
Federal Home Loan Bank advances 395,037     155,057     353,995     211,505     239,980     41,042     183,532  
Other borrowed funds 9,917     8,204     8,224     5,817     1,713     1,693     4,100  
Subordinated debentures 134,058     134,061     126,135     126,063     (3 )   7,923     7,995  
Other liabilities 99,550     92,793     76,618     97,139     6,757     22,932     2,411  
Total liabilities $ 10,423,652     10,204,754     8,507,292     8,689,537     218,898     1,916,360     1,734,115  
 

Core deposits of $9.251 billion as of June 30, 2018 decreased $22.4 million, or 24 basis points, from the prior quarter.  Excluding acquisitions, core deposits increased $430 million, or 6 percent, from the prior year second quarter.  Non-interest bearing deposits as of June 30, 2018 increased $103 million, or 4 percent from the prior quarter and organically increased $209 million, or 9 percent from the prior year second quarter.

Securities sold under agreements to repurchase of $362 million at June 30, 2018 decreased $34.3 million, or 9 percent, over prior quarter and decreased $89.5 million, or 20 percent, over prior year second quarter.  Federal Home Loan Bank ("FHLB") advances of $395 million at June 30, 2018, increased $240 million over the prior quarter to fund loan growth during the current quarter.


Stockholders' Equity Summary

                  $ Change from
(Dollars in thousands, except per share data) Jun 30,
 2018
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
Common equity $ 1,494,274     1,471,047     1,201,036     1,204,258     23,227     293,238     290,016  
Accumulated other comprehensive (loss) income (20,282 )   (17,023 )   (1,979 )   5,699     (3,259 )   (18,303 )   (25,981 )
Total stockholders' equity 1,473,992     1,454,024     1,199,057     1,209,957     19,968     274,935     264,035  
 
Goodwill and core deposit intangible, net (342,243 )   (343,991 )   (191,995 )   (193,249 )   1,748     (150,248 )   (148,994 )
Tangible stockholders' equity $ 1,131,749     1,110,033     1,007,062     1,016,708     21,716     124,687     115,041  
                                           
Stockholders' equity to total assets   12.39 %   12.47 %   12.35 %   12.22 %                  
                                           
Tangible stockholders' equity to total tangible assets   9.79 %   9.81 %   10.58 %   10.47 %                  
                                                 
Book value per common share $ 17.44     $ 17.21     $ 15.37     $ 15.51     0.23     2.07     1.93  
                                                 
Tangible book value per common share $ 13.39     $ 13.13     $ 12.91     $ 13.03     0.26     0.48     0.36  
                                                 

Tangible stockholders' equity of $1.132 billion at June 30, 2018 increased $22 million compared to the prior quarter which was the result of earnings retention.  Tangible stockholders' equity increased $115 million over the prior year second quarter which was the result of earnings retention, $181 million and $69.8 million of Company stock issued for the acquisitions of FSB and Collegiate, respectively; these increases more than offset the increase in goodwill and core deposit intangibles associated with the acquisitions.  Tangible book value per common share at quarter end increased $0.26 per share from the prior quarter and increased $0.36 per share from a year ago.

Cash Dividends
On June 27, 2018, the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share, an increase of $0.03 per share, or 13 percent from the prior quarter.  The dividend was payable July 19, 2018 to shareholders of record on July 10, 2018.  The dividend was the 133rd consecutive quarterly dividend.  Dividends declared for the first half of 2018 were $0.49 per share, an increase of $0.07 per share, or 17 percent, over the same period last year. 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, 2018
Compared to March 31, 2018 and June 30, 2017

Income Summary

  Three Months ended   $ Change from
(Dollars in thousands) Jun 30,
 2018
  Mar 31,
 2018
  Jun 30,
 2017
  Mar 31,
 2018
  Jun 30,
 2017
Net interest income                  
Interest income $ 117,715     103,066     94,032     14,649     23,683  
Interest expense 9,161     7,774     7,774     1,387     1,387  
Total net interest income 108,554     95,292     86,258     13,262     22,296  
Non-interest income                  
Service charges and other fees 18,804     16,871     17,495     1,933     1,309  
Miscellaneous loan fees and charges 2,243     1,477     1,092     766     1,151  
Gain on sale of loans 8,142     6,097     7,532     2,045     610  
Loss on sale of investments (56 )   (333 )   (522 )   277     466  
Other income 2,695     1,974     2,059     721     636  
Total non-interest income 31,828     26,086     27,656     5,742     4,172  
Total income $ 140,382     121,378     113,914     19,004     26,468  
                         
Net interest margin (tax-equivalent) 4.17 %   4.10 %   4.12 %        
 

Net Interest Income
The current quarter interest income of $118 million increased $14.6 million, or 14 percent, from the prior quarter and increased $23.7 million, or 25 percent, over the prior year second quarter with both increases primarily attributable to the increase in interest income from commercial loans.  Interest income on commercial loans increased $10.3 million, or 16 percent, from the prior quarter and increased $19.6 million, or 35 percent, from the prior year second quarter.

The current quarter interest expense of $9.2 million increased $1.4 million, or 18 percent, from the prior quarter and increased $1.4 million, or 18 percent, from the prior year second quarter.  The total cost of funding (including non-interest bearing deposits) for the current quarter was 36 basis points compared to 35 basis points for the prior quarter and 37 basis points for the prior year second quarter.  The 1 basis point increase from the prior quarter was driven by an increase in deposit rates which was partially offset by the increase in non-interest bearing deposits.

The Company's net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.17 percent compared to 4.10 percent in the prior quarter.  The 7 basis points increase in the net interest margin was primarily the result of increased yields on the loan portfolio and also included a 2 basis points increase in loan discount accretion from the fair value adjustments of recently acquired banks.  The current quarter net interest margin increased 5 basis points over the prior year second quarter net interest margin of 4.12 percent.  Included in the current quarter margin was a 14 basis points decrease due to the reduction in the federal corporate income tax rate in 2018 by the Tax Cut and Jobs Act ("Tax Act").  The increase in the core margin from the prior year second quarter resulted from the remix of earning assets to higher yielding loans, increased yields on the loan portfolio, and stable funding costs.  "The Bank divisions have been excellent in pricing loans at higher yields where possible in the current quarter.  They remain focused on maintaining a quality deposit franchise.  We were especially pleased to see growth in non-interest bearing deposits," said Ron Copher, Chief Financial Officer.

Non-interest Income
Non-interest income for the current quarter totaled $31.8 million, an increase of $5.7 million, or 22 percent, from the prior quarter and an increase of $4.2 million, or 15 percent, over the same quarter last year.  Service charges and other fees of $18.8 million for the current quarter, increased $1.9 million, or 11 percent, from the prior quarter as a result of seasonality and the increased number of accounts, including from acquisitions.  Service charges and other fees increased $1.3 million, 7 percent, from the prior year second quarter primarily due to the increased number of accounts from organic growth and acquisitions.  Miscellaneous loan fees and charges increased $766 thousand, or 52 percent from prior quarter and increased $1.2 million, or 105 percent, from the prior year second quarter as a result of the recent acquisitions and increased loan growth.  Gain on sale of loans increased $2.0 million, or 34 percent, from the prior quarter as a result of seasonality.


Non-interest Expense Summary

  Three Months ended   $ Change from
(Dollars in thousands) Jun 30,
 2018
  Mar 31,
 2018
  Jun 30,
 2017
  Mar 31,
 2018
  Jun 30,
 2017
Compensation and employee benefits $ 49,023     45,721     39,498     3,302     9,525  
Occupancy and equipment 7,662     7,274     6,560     388     1,102  
Advertising and promotions 2,530     2,170     2,169     360     361  
Data processing 4,241     3,967     3,409     274     832  
Other real estate owned 211     72     442     139     (231 )
Regulatory assessments and insurance 1,329     1,206     1,087     123     242  
Core deposit intangibles amortization 1,748     1,056     639     692     1,109  
Other expenses 15,051     12,161     11,505     2,890     3,546  
                               
Total non-interest expense $ 81,795     73,627     65,309     8,168     16,486  
 

Total non-interest expense of $81.8 million for the current quarter increased $8.2 million, or 11 percent, over the prior quarter and increased $16.5 million, or 25 percent, over the prior year second quarter.  Compensation and employee benefits increased by $3.3 million, or 7 percent, from the prior quarter due to the increased number of employees from acquisitions.  Compensation and employee benefits increased by $9.5 million, or 24 percent, from the prior year second quarter due to the increased number of employees from acquisitions and organic growth combined with annual salary increases.  Occupancy and equipment expense increased $388 thousand, or 5 percent, over the prior quarter and increased $1.1 million, or 17 percent, over the prior year second quarter and was attributable to increased costs from acquisitions.  Data processing expense increased $274 thousand, or 7 percent, from the prior quarter and increased $832 thousand, or 24 percent, from the prior year second quarter due to increased expenses from the acquisitions.  Other expenses increased $2.9 million, or 24 percent, from the prior quarter and increased $3.5 million, or 31 percent, from the prior year second quarter primarily from an increase in acquisition-related expenses.  Acquisition-related expenses were $2.9 million during the current quarter compared to $1.8 million in the prior quarter and $867 thousand in the prior year second quarter.

Federal and State Income Tax Expense
Tax expense during the second quarter of 2018 was $9.5 million, which is a decrease of $2.4 million, or 20 percent, from the prior year second quarter and was attributable to the decrease in the federal income tax rate driven by the Tax Act.  The effective tax rate in the second quarter of 2018 was 18 percent compared to 26 percent in the prior year second quarter.

Efficiency Ratio
The current quarter efficiency ratio was 55.44 percent, a 236 basis points improvement from the prior quarter efficiency ratio of 57.80 percent.  The decrease was the result of an increase in interest income and seasonal increases in gain on sale of loans and deposit service charges combined with the Company controlling operating costs.


Operating Results for Six Months Ended June 30, 2018
Compared to June 30, 2017

Income Summary

  Six Months Ended        
(Dollars in thousands) Jun 30,
 2018
  Jun 30,
 2017
  $ Change   % Change
Net interest income              
Interest income $ 220,781     $ 181,660     $ 39,121     22 %
Interest expense 16,935     15,140     1,795     12 %
Total net interest income 203,846     166,520     37,326     22 %
               
Non-interest income              
Service charges and other fees 35,675     33,128     2,547     8 %
Miscellaneous loan fees and charges 3,720     2,072     1,648     80 %
Gain on sale of loans 14,239     13,890     349     3 %
Loss on sale of investments (389 )   (622 )   233     (37)%
Other income 4,669     4,877     (208 )   (4)%
Total non-interest income 57,914     53,345     4,569     9 %
  $ 261,760     $ 219,865     $ 41,895     19 %
                   
Net interest margin (tax-equivalent) 4.14 %   4.08 %        
 

Net Interest Income
Interest income for the the first six months of 2018 increased $39.1 million, or 22 percent, from the first six months of 2017 and was primarily attributable to a $35.2 million increase in interest income from commercial loans.  Interest expense of $16.9 million for the first half of 2018 increased $1.8 million over the prior year same period.  Interest expense on deposits decreased $408 thousand, or 5 percent, from the prior year and was due to the decrease in wholesale deposits.  Interest expense on repurchase agreements, FHLB advances, and subordinated debt increased $2.2 million, or 36 percent, over the prior year and was primarily driven by the increase in interest rates.  The total funding cost (including non-interest bearing deposits) for 2018 was 36 basis points compared to 37 basis points for 2017.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first six months of 2018 was 4.14 percent, a 6 basis points increase from the net interest margin of 4.08 percent for the first half of 2017.  Included in the current year margin was a 14 basis points decrease compared to the prior year driven by the reduction in the federal corporate income tax rate.  The increase in the margin was principally due to a shift in earning assets to higher yielding loans along with an increase in yields on the loan portfolio combined with stable cost of funds.

Non-interest Income
Non-interest income of $57.9 million for the first six months of 2018 increased $4.6 million, or 9 percent, over the same period last year.  Service charges and other fees of $35.7 million for 2018 increased $2.5 million, or 8 percent, from the prior year as a result of an increased number of deposit accounts from organic growth and acquisitions.  Miscellaneous loan fees and charges for the first half of 2018 increased $1.6 million, or 80 percent from the prior year as a result of the recent acquisitions and increased loan growth.


Non-interest Expense Summary

  Six Months Ended        
(Dollars in thousands) Jun 30,
 2018
  Jun 30,
 2017
  $ Change   % Change
Compensation and employee benefits $ 94,744     $ 78,744     $ 16,000     20 %
Occupancy and equipment 14,936     13,206     1,730     13 %
Advertising and promotions 4,700     4,142     558     13 %
Data processing 8,208     6,533     1,675     26 %
Other real estate owned 283     715     (432 )   (60)%
Regulatory assessments and insurance 2,535     2,148     387     18 %
Core deposit intangibles amortization 2,804     1,240     1,564     126 %
Other expenses 27,212     21,925     5,287     24 %
Total non-interest expense $ 155,422     $ 128,653     $ 26,769     21 %
 

Total non-interest expense of $155.4 million for the first half of 2018 increased $26.8 million, or 21 percent, over prior year first half. Compensation and employee benefits for first six months of 2018 increased $16.0 million, or 20 percent, from the same period last year due to the increased number of employees from acquisitions and organic growth combined with annual salary increases. Occupancy and equipment expense for the first half of 2018 increased $1.7 million, or 13 percent from the prior year as a result of increased costs from acquisitions.  Data processing expense for the current year increased $1.7 million, or 26 percent, from the prior year as a result of increased costs from the acquisitions.  Current year other expenses of $27.2 million increased $5.3 million, or 24 percent, from the prior year and was from an increase in acquisition-related expenses.  Acquisition-related expenses were $4.8 million during the first half of 2018 compared to $949 thousand in the prior year first half.

Provision for Loan Losses
The provision for loan losses was $5.5 million for the first half of 2018, an increase of $902 thousand from the same period in the prior year.  Net charge-offs during the first half of 2018 were $3.5 million compared to $4.3 million during the same period in 2017.

Federal and State Income Tax Expense
Tax expense of $17.9 million in the first half of  2018 decreased $3.8 million, or 17 percent, over the prior year same period as a result of a decrease in the federal corporate income tax rate by the Tax Act.  The effective tax rate in 2018 was 18 percent compared to 25 percent in the prior year.

Efficiency Ratio
The efficiency ratio of 56.54 percent for the first six months of 2018 increased 237 basis points from the prior year first six months efficiency ratio of 54.17.  The increase included 280 basis points related to the decrease in the federal income tax rate and the increase in acquisition-related expenses.

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, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
  • 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
The conference call will be accessible by telephone and through the internet. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 6584388. To participate on the webcast, log on to: https://edge.media-server.com/m6/p/ihbz5btx. 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 6584388 by August 3, 2018.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is the parent company for Glacier Bank, Kalispell and its bank divisions: First Security Bank of Missoula; Valley Bank of Helena; Western Security Bank, Billings; First Bank of Montana, Lewistown; and First Security Bank, Bozeman, all located in Montana; as well as Mountain West Bank, Coeur d'Alene, operating in Idaho, Utah and Washington; First Bank, Powell, operating in Wyoming and Utah; Citizens Community Bank, Pocatello, operating in Idaho; Bank of the San Juans, Durango; and Collegiate Peaks Bank, Buena Vista both operating in Colorado; First State Bank, Wheatland, operating in Wyoming; North Cascades Bank, Chelan, operating in Washington; and The Foothills Bank, Yuma, operating in Arizona.

 

 
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
               
(Dollars in thousands, except per share data) June 30,
 2018
  March 31,
 2018
  December 31,
 2017
  June 30,
 2017
Assets              
Cash on hand and in banks $ 174,239     140,625     139,948     163,913  
Federal funds sold     230          
Interest bearing cash deposits 193,893     310,193     60,056     73,677  
Cash and cash equivalents 368,132     451,048     200,004     237,590  
Debt securities, available-for-sale 2,177,352     2,154,845     1,778,243     2,142,472  
Debt securities, held-to-maturity 620,409     634,413     648,313     659,347  
Total debt securities 2,797,761     2,789,258     2,426,556     2,801,819  
Loans held for sale, at fair value 53,788     37,058     38,833     37,726  
Loans receivable 7,948,672     7,670,030     6,577,824     6,345,762  
Allowance for loan and lease losses (131,564 )   (127,608 )   (129,568 )   (129,877 )
Loans receivable, net 7,817,108     7,542,422     6,448,256     6,215,885  
Premises and equipment, net 240,373     238,491     177,348     179,823  
Other real estate owned 13,616     14,132     14,269     18,500  
Accrued interest receivable 55,973     54,376     44,462     46,921  
Deferred tax asset 34,211     32,929     38,344     59,186  
Core deposit intangible, net 52,708     54,456     14,184     15,438  
Goodwill 289,535     289,535     177,811     177,811  
Non-marketable equity securities 26,107     21,910     29,884     23,995  
Bank-owned life insurance 81,379     81,787     59,351     58,612  
Other assets 66,953     51,376     37,047     26,188  
Total assets $ 11,897,644     11,658,778     9,706,349     9,899,494  
Liabilities              
Non-interest bearing deposits $ 2,914,885     2,811,469     2,311,902     2,234,058  
Interest bearing deposits 6,508,690     6,607,376     5,267,845     5,563,905  
Securities sold under agreements to repurchase 361,515     395,794     362,573     451,050  
FHLB advances 395,037     155,057     353,995     211,505  
Other borrowed funds 9,917     8,204     8,224     5,817  
Subordinated debentures 134,058     134,061     126,135     126,063  
Accrued interest payable 3,952     3,740     3,450     3,535  
Other liabilities 95,598     89,053     73,168     93,604  
Total liabilities 10,423,652     10,204,754     8,507,292     8,689,537  
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 845     845     780     780  
Paid-in capital 1,049,724     1,048,860     797,997     796,707  
Retained earnings - substantially restricted 443,705     421,342     402,259     406,771  
Accumulated other comprehensive (loss) income (20,282 )   (17,023 )   (1,979 )   5,699  
Total stockholders' equity 1,473,992     1,454,024     1,199,057     1,209,957  
Total liabilities and stockholders' equity $ 11,897,644     11,658,778     9,706,349     9,899,494  
 

 

 
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 
  Three Months ended   Six Months Ended
(Dollars in thousands, except per share data) June 30,
 2018
  March 31,
 2018
  June 30,
 2017
  June 30,
 2018
  June 30,
 2017
Interest Income                  
Debt securities $ 22,370     20,142     21,379     42,512     43,318  
Residential real estate loans 10,149     8,785     8,350     18,934     16,268  
Commercial loans 75,824     65,515     56,182     141,339     106,152  
Consumer and other loans 9,372     8,624     8,121     17,996     15,922  
Total interest income 117,715     103,066     94,032     220,781     181,660  
Interest Expense                  
Deposits 4,617     3,916     4,501     8,533     8,941  
Securities sold under agreements to repurchase 486     485     443     971     825  
Federal Home Loan Bank advances 2,513     2,089     1,734     4,602     3,244  
Other borrowed funds 26     16     19     42     34  
Subordinated debentures 1,519     1,268     1,077     2,787     2,096  
Total interest expense 9,161     7,774     7,774     16,935     15,140  
Net Interest Income 108,554     95,292     86,258     203,846     166,520  
Provision for loan losses 4,718     795     3,013     5,513     4,611  
Net interest income after provision for loan losses 103,836     94,497     83,245     198,333     161,909  
Non-Interest Income                  
Service charges and other fees 18,804     16,871     17,495     35,675     33,128  
Miscellaneous loan fees and charges 2,243     1,477     1,092     3,720     2,072  
Gain on sale of loans 8,142     6,097     7,532     14,239     13,890  
Loss on sale of debt securities (56 )   (333 )   (522 )   (389 )   (622 )
Other income 2,695     1,974     2,059     4,669     4,877  
Total non-interest income 31,828     26,086     27,656     57,914     53,345  
Non-Interest Expense                  
Compensation and employee benefits 49,023     45,721     39,498     94,744     78,744  
Occupancy and equipment 7,662     7,274     6,560     14,936     13,206  
Advertising and promotions 2,530     2,170     2,169     4,700     4,142  
Data processing 4,241     3,967     3,409     8,208     6,533  
Other real estate owned 211     72     442     283     715  
Regulatory assessments and insurance 1,329     1,206     1,087     2,535     2,148  
Core deposit intangibles amortization 1,748     1,056     639     2,804     1,240  
Other expenses 15,051     12,161     11,505     27,212     21,925  
Total non-interest expense 81,795     73,627     65,309     155,422     128,653  
                             
Income Before Income Taxes 53,869     46,956     45,592     100,825     86,601  
Federal and state income tax expense 9,485     8,397     11,905     17,882     21,659  
Net Income $ 44,384     38,559     33,687     82,943     64,942  
 

 

   
Glacier Bancorp, Inc.
Average Balance Sheets
   
  Three Months ended
  June 30, 2018   June 30, 2017
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 874,839     $ 10,149     4.64 %   $ 738,309     $ 8,350     4.52 %
Commercial loans 1 6,158,095     76,834     5.00 %   4,729,848     57,709     4.89 %
Consumer and other loans 761,751     9,372     4.93 %   680,158     8,121     4.79 %
Total loans 2 7,794,685     96,355     4.96 %   6,148,315     74,180     4.84 %
Tax-exempt debt securities 3 1,085,520     12,634     4.66 %   1,201,746     17,154     5.71 %
Taxable debt securities 4 1,931,846     12,630     2.62 %   1,795,189     10,416     2.32 %
Total earning assets 10,812,051     121,619     4.51 %   9,145,250     101,750     4.46 %
Goodwill and intangibles 343,201             174,857          
Non-earning assets 473,750             393,574          
Total assets $ 11,629,002             $ 9,713,681          
Liabilities                      
Non-interest bearing deposits $ 2,800,719     $     %   $ 2,118,776     $     %
NOW and DDA accounts 2,316,927     1,009     0.17 %   1,624,246     282     0.07 %
Savings accounts 1,319,966     231     0.07 %   1,047,790     154     0.06 %
Money market deposit accounts 1,746,960     856     0.20 %   1,551,009     608     0.16 %
Certificate accounts 941,099     1,592     0.68 %   906,416     1,303     0.58 %
Total core deposits 9,125,671     3,688     0.16 %   7,248,237     2,347     0.13 %
Wholesale deposits 5 153,127     929     2.43 %   313,511     2,154     2.76 %
FHLB advances 290,391     2,513     3.42 %   340,259     1,734     2.02 %
Repurchase agreements and  other borrowed funds 510,636     2,031     1.60 %   552,036     1,539     1.12 %
Total funding liabilities 10,079,825     9,161     0.36 %   8,454,043     7,774     0.37 %
Other liabilities 74,600             71,119          
Total liabilities 10,154,425             8,525,162          
Stockholders' Equity                      
Common stock 845             775          
Paid-in capital 1,049,270             780,891          
Retained earnings 443,607             405,772          
Accumulated other comprehensive (loss) income (19,145 )           1,081          
Total stockholders' equity 1,474,577             1,188,519          
Total liabilities and stockholders' equity $ 11,629,002             $ 9,713,681          
Net interest income (tax-equivalent)     $ 112,458             $ 93,976      
Net interest spread (tax-equivalent)         4.15 %           4.09 %
Net interest margin (tax-equivalent)         4.17 %           4.12 %


______________________________
1        Includes tax effect of $1.0 million and $1.5 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2018 and 2017, respectively.
2   Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale.  Non-accrual loans were included in the average volume for the entire period.
3   Includes tax effect of $2.6 million and $5.9 million on tax-exempt debt securities income for the three months ended June 30, 2018 and 2017, respectively.
4   Includes tax effect of $305 thousand and $339 thousand on federal income tax credits for the three months ended June 30, 2018 and 2017, 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, 2018   June 30, 2017
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 829,579     $ 18,934     4.56 %   $ 723,950     $ 16,268     4.49 %
Commercial loans 1 5,856,533     143,308     4.93 %   4,552,062     109,044     4.83 %
Consumer and other loans 740,569     17,996     4.90 %   676,340     15,922     4.75 %
Total loans 2 7,426,681     180,238     4.89 %   5,952,352     141,234     4.78 %
Tax-exempt debt securities 3 1,089,605     25,429     4.67 %   1,223,431     34,915     5.71 %
Taxable debt securities 4 1,793,849     22,902     2.55 %   1,826,090     20,991     2.30 %
Total earning assets 10,310,135     228,569     4.47 %   9,001,873     197,140     4.42 %
Goodwill and intangibles 281,673             167,017          
Non-earning assets 432,533             381,492          
Total assets $ 11,024,341             $ 9,550,382          
Liabilities                      
Non-interest bearing deposits $ 2,637,342     $     %   $ 2,045,124     $     %
NOW and DDA accounts 2,165,039     1,827     0.17 %   1,600,221     529     0.07 %
Savings accounts 1,252,760     423     0.07 %   1,031,540     300     0.06 %
Money market deposit accounts 1,689,730     1,576     0.19 %   1,520,771     1,173     0.16 %
Certificate accounts 908,940     2,911     0.65 %   929,841     2,636     0.57 %
Total core deposits 8,653,811     6,737     0.16 %   7,127,497     4,638     0.13 %
Wholesale deposits 5 151,362     1,796     2.39 %   322,831     4,303     2.69 %
FHLB advances 257,800     4,602     3.55 %   305,933     3,244     2.11 %
Repurchase agreements and  other borrowed funds 516,108     3,800     1.48 %   557,303     2,955     1.07 %
Total funding liabilities 9,579,081     16,935     0.36 %   8,313,564     15,140     0.37 %
Other liabilities 50,421             76,241          
Total liabilities 9,629,502             8,389,805          
Stockholders' Equity                      
Common stock 827             771          
Paid-in capital 978,046             764,959          
Retained earnings 432,143             397,829          
Accumulated other comprehensive loss (16,177 )           (2,982 )        
Total stockholders' equity 1,394,839             1,160,577          
Total liabilities and stockholders' equity $ 11,024,341             $ 9,550,382          
Net interest income (tax-equivalent)     $ 211,634             $ 182,000      
Net interest spread (tax-equivalent)         4.11 %           4.05 %
Net interest margin (tax-equivalent)         4.14 %           4.08 %


______________________________
1      Includes tax effect of $2.0 million and $2.9 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2018 and 2017, 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 $5.2 million and $11.9 million on tax-exempt investment securities income for the six months ended June 30, 2018 and 2017, respectively.
4   Includes tax effect of $609 thousand and $677 thousand on federal income tax credits for the six months ended June 30, 2018 and 2017, 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,
 2018
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
Custom and owner occupied construction $ 138,171     $ 140,440     $ 109,555     $ 103,816     (2)%   26 %   33%
Pre-sold and spec construction 96,008     100,376     72,160     76,553     (4)%   33 %   25%
Total residential construction 234,179     240,816     181,715     180,369     (3)%   29 %   30%
Land development 108,641     76,528     82,398     80,044     42 %   32 %   36%
Consumer land or lots 110,846     119,469     102,289     107,124     (7)%   8 %   3%
Unimproved land 72,150     68,862     65,753     67,935     5 %   10 %   6%
Developed lots for operative builders 12,708     13,093     14,592     12,337     (3)%   (13)%   3%
Commercial lots 27,661     43,232     23,770     25,675     (36)%   16 %   8%
Other construction 478,037     420,632     391,835     307,547     14 %   22 %   55%
Total land, lot, and other construction 810,043     741,816     680,637     600,662     9 %   19 %   35%
Owner occupied 1,302,737     1,292,206     1,132,833     1,091,119     1 %   15 %   19%
Non-owner occupied 1,495,532     1,449,166     1,186,066     1,148,831     3 %   26 %   30%
Total commercial real estate 2,798,269     2,741,372     2,318,899     2,239,950     2 %   21 %   25%
Commercial and industrial 909,688     865,574     751,221     769,105     5 %   21 %   18%
Agriculture 661,218     620,342     450,616     457,286     7 %   47 %   45%
1st lien 1,072,917     1,014,361     877,335     849,601     6 %   22 %   26%
Junior lien 64,821     66,288     51,155     53,316     (2)%   27 %   22%
Total 1-4 family 1,137,738     1,080,649     928,490     902,917     5 %   23 %   26%
Multifamily residential 218,061     219,310     189,342     172,523     (1)%   15 %   26%
Home equity lines of credit 500,036     481,204     440,105     419,940     4 %   14 %   19%
Other consumer 164,288     162,171     148,247     155,098     1 %   11 %   6%
Total consumer 664,324     643,375     588,352     575,038     3 %   13 %   16%
States and political subdivisions 419,025     421,252     383,252     341,159     (1)%   9 %   23%
Other 149,915     132,582     144,133     144,479     13 %   4 %   4%
Total loans receivable, including  loans held for sale 8,002,460     7,707,088     6,616,657     6,383,488     4 %   21 %   25%
Less loans held for sale 1 (53,788 )   (37,058 )   (38,833 )   (37,726 )   45 %   39 %   43%
Total loans receivable $ 7,948,672     $ 7,670,030     $ 6,577,824     $ 6,345,762     4 %   21 %   25%


______________________________
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,
 2018
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
  Jun 30,
 2018
  Jun 30,
 2018
  Jun 30,
 2018
Custom and owner occupied construction $ 48     48     48     177             48  
Pre-sold and spec construction 492     492     38     272     492          
Total residential construction 540     540     86     449     492         48  
Land development 7,564     7,802     7,888     8,428     901         6,663  
Consumer land or lots 1,593     1,622     1,861     1,868     510         1,083  
Unimproved land 9,962     10,294     10,866     11,933     8,453     28     1,481  
Developed lots for operative builders 126     83     116     116     43         83  
Commercial lots 1,059     1,312     1,312     1,559     13         1,046  
Other construction 155     319     151     151     17         138  
Total land, lot and other construction 20,459     21,432     22,194     24,055     9,937     28     10,494  
Owner occupied 12,891     12,594     13,848     17,757     11,251     113     1,527  
Non-owner occupied 15,337     5,346     4,584     2,791     7,734     7,108     495  
Total commercial real estate 28,228     17,940     18,432     20,548     18,985     7,221     2,022  
Commercial and industrial 7,692     6,313     5,294     4,753     6,577     1,070     45  
Agriculture 10,497     10,476     3,931     2,877     7,946     2,551      
1st lien 9,725     8,717     9,261     9,057     7,964     1,426     335  
Junior lien 3,257     4,271     567     727     3,220     37      
Total 1-4 family 12,982     12,988     9,828     9,784     11,184     1,463     335  
Multifamily residential 634     652             634          
Home equity lines of credit 3,112     3,312     3,292     5,864     2,205     274     633  
Other consumer 393     330     322     551     210     144     39  
Total consumer 3,505     3,642     3,614     6,415     2,415     418     672  
States and political subdivisions         1,800                  
Total $ 84,537     73,983     65,179     68,881     58,170     12,751     13,616  
 


       
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,
 2018
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
Custom and owner occupied construction $ 1,525     $ 611     $ 300     $ 493     150 %   408 %   209 %
Pre-sold and spec construction 721     267     102     155     170 %   607 %   365 %
Total residential construction 2,246     878     402     648     156 %   459 %   247 %
Land development 728     585             24 %   n/m   n/m
Consumer land or lots 471     485     353     808     (3)%   33 %   (42)%
Unimproved land 1,450     889     662     1,115     63 %   119 %   30 %
Developed lots for operative builders     464     7         (100)%   (100)%   n/m
Commercial lots     194     108         (100)%   (100)%   n/m
Other construction     76             (100)%   n/m   n/m
Total land, lot and other construction 2,649     2,693     1,130     1,923     (2)%   134 %   38 %
Owner occupied 3,571     13,904     4,726     5,038     (74)%   (24)%   (29)%
Non-owner occupied 8,414     3,842     2,399     6,533     119 %   251 %   29 %
Total commercial real estate 11,985     17,746     7,125     11,571     (32)%   68 %   4 %
Commercial and industrial 5,745     5,746     6,472     5,825     — %   (11)%   (1)%
Agriculture 5,288     3,845     3,205     1,067     38 %   65 %   396 %
1st lien 5,132     9,597     10,865     2,859     (47)%   (53)%   80 %
Junior lien 989     240     4,348     815     312 %   (77)%   21 %
Total 1-4 family 6,121     9,837     15,213     3,674     (38)%   (60)%   67 %
Multifamily Residential             2,011     n/m   n/m   (100)%
Home equity lines of credit 3,940     2,316     1,962     2,819     70 %   101 %   40 %
Other consumer 1,665     1,849     2,109     1,572     (10)%   (21)%   6 %
Total consumer 5,605     4,165     4,071     4,391     35 %   38 %   28 %
Other 11     53     69     14     (79)%   (84)%   (21)%
Total $ 39,650     $ 44,963     $ 37,687     $ 31,124     (12)%   5 %   27 %


______________________________
1 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,
 2018
  Mar 31,
 2018
  Dec 31,
 2017
  Jun 30,
 2017
  Jun 30,
 2018
  Jun 30,
 2018
Pre-sold and spec construction $ (344 )   (339 )   (23 )   (15 )   17     361  
Total residential construction (344 )   (339 )   (23 )   (15 )   17     361  
Land development (107 )   (5 )   (143 )   (46 )       107  
Consumer land or lots (92 )   (3 )   222     (107 )   206     298  
Unimproved land (144 )   (73 )   (304 )   (110 )       144  
Developed lots for operative builders 33         (107 )   (10 )   33      
Commercial lots 4     (2 )   (6 )   (3 )   7     3  
Other construction         389     390          
Total land, lot and other construction (306 )   (83 )   51     114     246     552  
Owner occupied 1,000     962     3,908     853     1,084     84  
Non-owner occupied (4 )   (47 )   368     (2 )   59     63  
Total commercial real estate 996     915     4,276     851     1,143     147  
Commercial and industrial 1,471     1,430     883     494     1,922     451  
Agriculture 44     (2 )   9     14     50     6  
1st lien (193 )   (65 )   (23 )   (32 )   47     240  
Junior lien (34 )   (29 )   719     746     47     81  
Total 1-4 family (227 )   (94 )   696     714     94     321  
Multifamily residential (6 )   (6 )   (230 )   (229 )       6  
Home equity lines of credit (38 )   (32 )   272     271     19     57  
Other consumer 111     73     505     (8 )   258     147  
Total consumer 73     41     777     263     277     204  
Other 1,816     893     4,389     2,100     3,862     2,046  
Total $ 3,517     2,755     10,828     4,306     7,611     4,094  
 

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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