Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2013

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| Source: Glacier Bancorp, Inc.

HIGHLIGHTS:

  • Current quarter net income of $20.8 million, an increase of 27 percent from the prior year first quarter net income of $16.3 million.
  • Current quarter diluted earnings per share of $0.29, an increase of 26 percent from the prior year first quarter diluted earnings per share of $0.23.
  • Announced the acquisition of First State Bank in Wheatland, Wyoming.
  • Announced the acquisition of North Cascades National Bank in Chelan, Washington.
  • The loan portfolio increased $6.4 million, or 76 basis points annualized, during the current quarter.
  • Non-performing assets of $135 million decreased $8.1 million, or 6 percent, from the prior quarter and decreased $79.2 million, or 37 percent, from the prior year first quarter.
  • Current quarter net interest margin, on a tax-equivalent basis, of 3.14 percent, an increase of 9 basis points from the prior quarter net interest margin of 3.05 percent.
  • Dividend declared of $0.14 per share during the quarter.
Results Summary      
 
  Three Months ended
(Dollars in thousands, except per share data) March 31,
2013
December 31,
2012
March 31,
2012
Net income  $ 20,768   20,758 16,333
Diluted earnings per share  $ 0.29   0.29 0.23
Return on average assets (annualized)  1.11%  1.06%  0.91%
Return on average equity (annualized)  9.20%  9.17%  7.58%

KALISPELL, Mont., April 18, 2013 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (Nasdaq:GBCI) reported net income for the current quarter of $20.8 million, an increase of $4.4 million, or 27 percent, from the $16.3 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.29 per share, an increase of $0.06, or 26 percent, from the prior year first quarter diluted earnings per share of $0.23. "We had a solid first quarter and good start to the year highlighted by the announcement to acquire First State Bank in Wheatland, WY and North Cascades National Bank headquartered in Chelan, WA," said Mick Blodnick, President and Chief Executive Officer. "It's exciting to add this type of talent and diversification to our Company," Blodnick said. "Also, for the first time in a number of years we saw positive results in credit quality, loan growth and our net interest margin all in the same quarter. The quarter brought a long awaited reduction in premium amortization and gives us hope that through the course of this year we could benefit from further reductions."

During the first quarter of 2013, the Company announced the signing of a definitive agreement to acquire First State Bank, a community bank based in Wheatland, Wyoming. As of December 31, 2012, First State Bank had total assets of $281 million, gross loans of $179 million and total deposits of $249 million. The transaction is expected to be completed in the second quarter of 2013. The Company also announced the signing of a definitive agreement to acquire North Cascades National Bank, a community bank based in Chelan, Washington. As of December 31, 2012, North Cascades National Bank had total assets of $347 million, gross loans of $219 million and total deposits of $300 million. The transaction is expected to be completed in the third quarter of 2013.

Asset Summary          
 
        $ Change from $ Change from
(Dollars in thousands) March 31, 2013 December 31, 2012 March 31, 2012 December 31, 2012 March 31, 2012
Cash and cash equivalents  $ 129,057 187,040 131,757 (57,983) (2,700)
Investment securities, available-for-sale 3,658,037 3,683,005 3,239,019 (24,968) 419,018
Loans receivable          
Residential real estate 513,784 516,467 515,405 (2,683) (1,621)
Commercial 2,307,632 2,278,905 2,283,488 28,727 24,144
Consumer and other 582,429 602,053 634,318 (19,624) (51,889)
Loans receivable 3,403,845 3,397,425 3,433,211 6,420 (29,366)
Allowance for loan and lease losses (130,835) (130,854) (136,586) 19 5,751
Loans receivable, net 3,273,010 3,266,571 3,296,625 6,439 (23,615)
Other assets 549,133 610,824 574,444 (61,691) (25,311)
Total assets  $ 7,609,237 7,747,440 7,241,845 (138,203) 367,392

Investment securities decreased $25.0 million, or 1 percent, during the current quarter and increased $419 million, or 13 percent, from March 31, 2012. The Company continued to purchase investment securities during the current quarter to offset the slow loan growth; however, the Company purchased investment securities (net of principal paydowns) at a slower pace than in the past several quarters. Additionally, the Company has moderately shifted the mix of investment securities through purchase activity in an effort to lessen the impact of the elevated premium amortization on collateralized mortgage obligation ("CMO") securities. The investment securities purchased during the current quarter included U.S. Agency mortgage-backed securities, U.S. Agency CMO's, corporate and municipal bonds. Investment securities represent 48 percent of total assets at March 31, 2013 and December 31, 2012 versus 45 percent at March 31, 2012. 

The loan portfolio increased during the current quarter by $6.4 million, or 76 basis points annualized, to a total of $3.404 billion at March 31, 2013. Excluding charge-offs of $3.6 million and loans of $6.7 million transferred to other real estate owned, loans increased $16.7 million from the prior quarter. The loan portfolio decreased $29.4 million, or 86 basis points, from the prior year first quarter. The largest increase was in commercial loans, which increased $28.7 million, or 1.3 percent, over the prior quarter and increased $24.1 million, or 1.1 percent, from the prior year first quarter. The largest decrease was in consumer and other loans which decreased $19.6 million, or 3 percent, from the prior quarter and decreased $51.9 million, or 8 percent, over the prior year first quarter. The decreases in consumer and other loans was primarily attributable to customers paying off home equity lines of credit (HELOC's). Other assets decreased $61.7 million during the current quarter, of which $57.5 million was from the decrease in loans held for sale resulting from a decline in the levels of refinanced residential loans at quarter end.

Credit Quality Summary
       
       
(Dollars in thousands) At or for the
Three Months ended
March 31, 2013
At or for the
Year ended
December 31, 2012
At or for the
Three Months ended
March 31, 2012
Allowance for loan and lease losses      
Balance at beginning of period  $ 130,854 137,516 137,516
Provision for loan losses 2,100 21,525 8,625
Charge-offs (3,614) (34,672) (11,058)
Recoveries 1,495 6,485 1,503
Balance at end of period  $ 130,835 130,854 136,586
Other real estate owned  $ 43,975 45,115 74,337
Accruing loans 90 days or more past due 563 1,479 9,231
Non-accrual loans 90,856 96,933 131,026
Total non-performing assets 1  $ 135,394 143,527 214,594
Non-performing assets as a percentage of subsidiary assets 1.79% 1.87% 2.91%
Allowance for loan and lease losses as a percentage of non-performing loans 143% 133% 97%
Allowance for loan and lease losses as a percentage of total loans 3.84% 3.85% 3.98%
Net charge-offs as a percentage of total loans 0.06% 0.83% 0.28%
Accruing loans 30-89 days past due  $ 32,278 27,097 42,581
       
1 As of March 31, 2013, non-performing assets have not been reduced by U.S. government guarantees of $1.4 million.

In the first quarter of 2013, the Company maintained the positive trend of reducing non-performing assets that was established throughout 2012. Non-performing assets at March 31, 2013 were $135 million, a decrease of $8.1 million, or 6 percent, during the current quarter and a decrease of $79.2 million, or 37 percent, from a year ago. The largest category of non-performing assets was the land, lot and other construction category which was $62.3 million, or 46 percent, of the non-performing assets at March 31, 2013. Included in this category was $28.9 million of land development loans and $17.4 million in unimproved land loans at March 31, 2013. The Company has continued to reduce the land, lot and other construction category over the prior two years and during the current quarter, this category of non-performing assets was further reduced by $4.2 million, or 6 percent. 

The Company's early stage delinquencies (accruing loans 30-89 days past due) of $32.3 million at March 31, 2013 increased $5.2 million, or 19 percent, from the prior quarter and decreased $10.3 million, or 24 percent, from the prior year first quarter early stage delinquencies. "Our goal this year of reducing non-performing assets below $100 million is definitely within reach after the success we recorded in the first quarter," said Blodnick. "We also saw a significant decrease in our credit costs compared to the prior and year ago quarters. The only increase came in early stage delinquencies which was expected and for us is driven each year at this time more by seasonal employment trends due to weather rather than changes in the economy."

At March 31, 2013, the allowance for loan and lease losses ("allowance") was $131 million, a decrease of $19 thousand from the prior quarter and a decrease of $5.8 million from a year ago. The allowance was 3.84 percent of total loans outstanding at March 31, 2013, compared to 3.85 percent at December 31, 2012 and 3.98 percent at March 31, 2012. The allowance was 143 percent of non-performing loans at March 31, 2013, an increase from 133 percent at December 31, 2012 and an increase from 97 percent at March 31, 2012.

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
First quarter 2013  $ 2,100 2,119 3.84% 0.95% 1.79%
Fourth quarter 2012 2,275 8,081 3.85% 0.80% 1.87%
Third quarter 2012 2,700 3,499 4.01% 0.83% 2.33%
Second quarter 2012 7,925 7,052 3.99% 1.41% 2.69%
First quarter 2012 8,625 9,555 3.98% 1.24% 2.91%
Fourth quarter 2011 8,675 9,252 3.97% 1.42% 2.92%
Third quarter 2011 17,175 18,877 3.92% 0.60% 3.49%
Second quarter 2011 19,150 20,184 3.88% 1.14% 3.68%

Net charged-off loans of $2.1 million during the current quarter decreased $6.0 million, or 74 percent, compared to the prior quarter. Although there has been fluctuation in the amount of charged-off loans the past several quarters, the Company continues to see overall better results as credit trends improve.   The current quarter provision for loan losses was $2.1 million, which decreased $175 thousand compared to the $2.3 million provision for loan losses for the prior quarter and decreased $6.5 million from the first quarter of the prior year. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of provision for loan loss expense. 

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 $ Change from
(Dollars in thousands) March 31, 2013 December 31, 2012 March 31, 2012 December 31, 2012 March 31, 2012
Non-interest bearing deposits  $ 1,180,738 1,191,933 1,039,068 (11,195) 141,670
Interest bearing deposits 4,192,477 4,172,528 3,888,750 19,949 303,727
Repurchase agreements 312,505 289,508 259,290 22,997 53,215
FHLB advances 802,004 997,013 995,038 (195,009) (193,034)
Other borrowed funds 10,276 10,032 10,358 244 (82)
Subordinated debentures 125,454 125,418 125,311 36 143
Other liabilities 71,503 60,059 60,033 11,444 11,470
Total liabilities  $ 6,694,957 6,846,491 6,377,848 (151,534) 317,109

The Company's deposits continued to increase and allowed the Company to fund the investment portfolio at lower funding costs. At March 31, 2013, non-interest bearing deposits of $1.181 billion decreased $11.2 million, or 1 percent, since December 31, 2012 and increased $142 million, or 14 percent, since March 31, 2012. Interest bearing deposits of $4.192 billion at March 31, 2013 included $656 million of wholesale deposits (i.e., brokered deposits classified as NOW, money market deposit and certificate accounts). Interest bearing deposits increased $19.9 million, or 48 basis points, since December 31, 2012 and included an increase of $26.6 million in wholesale deposits. Interest bearing deposits increased $304 million, or 8 percent, from March 31, 2012 and included an increase of $181 million in wholesale deposits. Federal Home Loan Bank ("FHLB") advances decreased $195 million from the prior quarter and decreased $193 million since the prior year first quarter as a result of the decrease in total assets and the decreased need for funding.

Stockholders' Equity Summary
 
        $ Change from $ Change from
(Dollars in thousands, except per share data) March 31, 2013 December 31, 2012 March 31, 2012 December 31, 2012 March 31, 2012
Common equity  $ 864,205 852,987 822,488 11,218 41,717
Accumulated other comprehensive income 50,075 47,962 41,509 2,113 8,566
Total stockholders' equity 914,280 900,949 863,997 13,331 50,283
Goodwill and core deposit intangible, net (111,788) (112,274) (113,832) 486 2,044
Tangible stockholders' equity  $ 802,492 788,675 750,165 13,817 52,327
Stockholders' equity to total assets  12.02%  11.63%  11.93%    
Tangible stockholders' equity to total tangible assets  10.70%  10.33%  10.52%    
Book value per common share  $ 12.70  12.52  12.01  0.18  0.69
Tangible book value per common share  $ 11.14  10.96  10.43  0.18  0.71
Market price per share at end of period  $ 18.98  14.71  14.94  4.27  4.04

Tangible stockholders' equity and tangible book value per share increased $13.8 million and $0.18 per share from the prior quarter, resulting in tangible stockholders' equity to tangible assets of 10.70 percent and tangible book value per share of $11.14 as of March 31, 2013.   The increases were from earnings retention and an increase in accumulated other comprehensive income. 

Cash Dividend

On March 27, 2013, the Company's Board of Directors declared a cash dividend of $0.14 per share, payable April 18, 2013 to shareholders of record on April 9, 2013. 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 March 31, 2013 
Compared to December 31, 2012 and March 31, 2012
         
Revenue Summary        
         
  Three Months ended  
(Dollars in thousands) March 31, 2013 December 31, 2012 March 31, 2012  
Net interest income        
Interest income $ 57,955 59,666 67,884  
Interest expense 7,458 8,165 9,598  
Total net interest income 50,497 51,501 58,286  
Non-interest income        
Service charges, loan fees, and other fees 11,675 12,845 11,438  
Gain on sale of loans 9,089 9,164 6,813  
Loss on sale of investments (137)  
Other income 2,323 3,384 2,087  
Total non-interest income 22,950 25,393 20,338  
  $ 73,447 76,894 78,624  
Net interest margin (tax-equivalent) 3.14% 3.05% 3.73%  
         
  $ Change from $ Change from % Change from % Change from
(Dollars in thousands) December 31, 2012 March 31, 2012 December 31, 2012 March 31, 2012
Net interest income        
Interest income $ (1,711) $ (9,929) (3)% (15)%
Interest expense (707) (2,140) (9)% (22)%
Total net interest income (1,004) (7,789) (2)% (13)%
Non-interest income        
Service charges, loan fees, and other fees (1,170) 237 (9)% 2%
Gain on sale of loans (75) 2,276 (1)% 33%
Loss on sale of investments (137) (137) n/m n/m
Other income (1,061) 236 (31)% 11%
Total non-interest income (2,443) 2,612 (10)% 13%
  $ (3,447) $ (5,177) (4)% (7)%

Net Interest Income

The current quarter net interest income of $50.5 million decreased $1.0 million, or 2 percent, over the prior quarter and decreased $7.8 million, or 13 percent, over the prior year first quarter. The current quarter interest income of $58.0 million decreased $1.7 million, or 3 percent, over the prior quarter as a result of the decrease in interest income on the loan portfolio. Included in the current quarter interest income was $21.4 million of premium amortization (net of discount accretion) on investment securities compared to $23.3 million in the prior quarter. The decrease of $1.9 million in premium amortization (net of discount accretion) on investment securities during the current quarter was the first quarterly decrease in seven quarters. The current quarter interest income decreased $9.9 million, or 15 percent, over the prior year first quarter primarily due to an $8.1 million increase in premium amortization (net of discount accretion) on investment securities coupled with a decrease of $4.2 million in loan interest income from the prior year first quarter. The current quarter decrease in interest expense of $707 thousand, or 9 percent, from the prior quarter and the decrease of $2.1 million, or 22 percent, in interest expense from the prior year first quarter was the result of a decrease in interest rates on deposits and a decrease in the amount of borrowings. The cost of total funding (including non-interest bearing deposits) for the current quarter was 46 basis points compared to 48 basis points for the prior quarter and 61 basis points for the prior year first quarter. 

The current quarter net interest margin as a percentage of earning assets, on a tax-equivalent basis, was 3.14 percent, an increase of 9 basis points from the prior quarter net interest margin of 3.05 percent. The increase in the net interest margin during the current quarter was the first increase in seven quarters and was primarily attributable to the increased yield on the investment securities. Of the 13 basis points increase in yield on the investment securities, 12 basis points was due to the decrease in premium amortization. The premium amortization in the current quarter accounted for a 123 basis points reduction in the net interest margin compared to a 128 basis points reduction in the prior quarter and 79 basis points reduction in the net interest margin in the prior year first quarter.   "The welcomed reduction in premium amortization is largely attributable to reduced holdings of U.S. Agency CMO's in favor of increased holdings of investment grade corporate bonds," said Ron Copher, Chief Financial Officer. 

Non-interest Income

Non-interest income for the current quarter totaled $23.0 million, a decrease of $2.4 million over the prior quarter and an increase of $2.6 million over the same quarter last year. Service charge fee income decreased $1.2 million, or 9 percent, from the prior quarter as a result of seasonal activity and fewer days in the quarter. Service charge fee income increased $237 thousand, or 2 percent, from the prior year first quarter. Gain on sale of loans of $9.1 million for the current quarter remained at historically high levels, but decreased $75 thousand, or 1 percent, from the prior quarter. Compared to the prior year period, the Company recorded a $2.3 million increase on the gain on sale of loans. Other income of $2.3 million for the current quarter decreased $1.1 million, or 31 percent, from the prior quarter primarily a result of decreases in income related to other real estate owned and gains on the sale of bank assets. Included in other income was operating revenue of $62 thousand from other real estate owned and gains of $664 thousand on the sale of other real estate owned, which totaled $726 thousand for the current quarter compared to $910 thousand for the prior quarter and $528 thousand for the prior year first quarter.

Non-interest Expense Summary
 
  Three Months ended  
(Dollars in thousands) March 31, 2013 December 31, 2012 March 31, 2012  
Compensation and employee benefits  $ 24,577 24,083 23,560  
Occupancy and equipment 5,825 6,043 5,968  
Advertising and promotions 1,548 1,478 1,402  
Outsourced data processing 825 889 846  
Other real estate owned 884 3,570 6,822  
Federal Deposit Insurance Corporation premiums 1,304 1,306 1,712  
Core deposit intangibles amortization 486 491 552  
Other expense 7,985 10,148 8,183  
Total non-interest expense  $ 43,434 48,008 49,045  
         
  $ Change from $ Change from % Change from % Change from
(Dollars in thousands) December 31, 2012 March 31, 2012 December 31, 2012 March 31, 2012
Compensation and employee benefits  $ 494  $ 1,017 2% 4%
Occupancy and equipment (218) (143) (4)% (2)%
Advertising and promotions 70 146 5% 10%
Outsourced data processing (64) (21) (7)% (2)%
Other real estate owned (2,686) (5,938) (75)% (87)%
Federal Deposit Insurance Corporation premiums (2) (408) —% (24)%
Core deposit intangibles amortization (5) (66) (1)% (12)%
Other expense (2,163) (198) (21)% (2)%
Total non-interest expense $ (4,574) $ (5,611) (10)% (11)%

Non-interest expense of $43.4 million for the current quarter decreased by $4.6 million, or 10 percent, from the prior quarter and decreased by $5.6 million, or 11 percent, from the prior year first quarter primarily driven by the decrease in other real estate owned ("OREO").  OREO expense decreased $2.7 million, or 75 percent, from the prior quarter and decreased $5.9 million, or 87 percent, from the prior year first quarter. The current quarter other real estate owned expense of $884 thousand included $422 thousand of operating expense, $227 thousand of fair value write-downs, and $235 thousand of loss on sale of other real estate owned. Other real estate owned expense will fluctuate as the Company continues to work through non-performing loans and dispose of foreclosed properties.   Compensation and employee benefits increased by $494 thousand, or 2 percent, from the prior quarter and increased $1.0 million, or 4 percent, from the prior year first quarter. Other expense decreased by $2.2 million, or 21 percent, from the prior quarter and decreased by $198 thousand, or 2 percent, from the prior year first quarter and was the result of changes in several miscellaneous categories. 

Efficiency Ratio

The efficiency ratio for the current quarter was 55 percent compared to 51 percent for the prior year first quarter. Although there was an increase in non-interest income during the current quarter, it was not enough to offset the decrease in net interest income.

About Glacier Bancorp, Inc.

Glacier Bancorp, Inc. is a regional bank holding company providing commercial banking services in 60 communities in Montana, Idaho, Utah, Washington, Wyoming and Colorado. Glacier Bancorp, Inc. is headquartered in Kalispell, Montana, and  is the parent company for Glacier Bank, Kalispell and bank divisions First Security Bank of Missoula; Valley Bank of Helena; Big Sky Western Bank, Bozeman; Western Security Bank, Billings; and First Bank of Montana, Lewistown; all operating in Montana; as well as Mountain West Bank, Coeur d'Alene operating in Idaho, Utah and Washington; Citizens Community Bank, Pocatello, operating in Idaho; 1st Bank, Evanston, operating in Wyoming and Utah;  First Bank of Wyoming, Powell, operating in Wyoming; and Bank of the San Juans, Durango, operating in Colorado.

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, including as a result of a slow recovery in the housing and real estate markets in its geographic areas;
  • increased loan delinquency rates;
  • the risks presented by a slow economic recovery, which could adversely affect credit quality, loan collateral values, other real estate owned values, investment values, liquidity and capital levels, dividends and loan originations;
  • changes in market interest rates, which could adversely affect the Company's net interest income and profitability;
  • legislative or regulatory changes 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 additionally impaired, which may have an adverse impact on earnings and capital;
  • reduced demand for banking products and services;
  • the risks presented by public stock market volatility, which could adversely affect the market price of the Company's common stock and the ability to raise additional capital in the future;
  • competition from other financial services companies in the Company's markets;
  • loss of services from the CEO and senior management team;
  • potential interruption or breach in security of the Company's systems; and
  • the Company's success in managing risks involved in the foregoing.

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

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
       
       
(Dollars in thousands, except per share data) March 31, 2013 December 31, 2012 March 31, 2012
Assets      
Cash on hand and in banks  $ 88,132 123,270 95,687
Interest bearing cash deposits 40,925 63,770 36,070
Cash and cash equivalents 129,057 187,040 131,757
Investment securities, available-for-sale 3,658,037 3,683,005 3,239,019
Loans held for sale 88,035 145,501 77,528
Loans receivable 3,403,845 3,397,425 3,433,211
Allowance for loan and lease losses (130,835) (130,854) (136,586)
Loans receivable, net 3,273,010 3,266,571 3,296,625
Premises and equipment, net 159,224 158,989 158,646
Other real estate owned 43,975 45,115 74,337
Accrued interest receivable 39,024 37,770 35,487
Deferred tax asset 17,449 20,394 24,511
Core deposit intangible, net 5,688 6,174 7,732
Goodwill 106,100 106,100 106,100
Non-marketable equity securities 48,812 48,812 49,699
Other assets 40,826 41,969 40,404
Total assets  $ 7,609,237 7,747,440 7,241,845
Liabilities      
Non-interest bearing deposits  $ 1,180,738 1,191,933 1,039,068
Interest bearing deposits 4,192,477 4,172,528 3,888,750
Securities sold under agreements to repurchase 312,505 289,508 259,290
Federal Home Loan Bank advances 802,004 997,013 995,038
Other borrowed funds 10,276 10,032 10,358
Subordinated debentures 125,454 125,418 125,311
Accrued interest payable 4,095 4,675 5,318
Other liabilities 67,408 55,384 54,715
Total liabilities 6,694,957 6,846,491 6,377,848
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 720 719 719
Paid-in capital 642,285 641,737 641,647
Retained earnings - substantially restricted 221,200 210,531 180,122
Accumulated other comprehensive income 50,075 47,962 41,509
Total stockholders' equity 914,280 900,949 863,997
Total liabilities and stockholders' equity  $ 7,609,237 7,747,440 7,241,845
Number of common stock shares issued and outstanding 72,018,617 71,937,222 71,915,073
 
 
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
     
  Three Months ended
(Dollars in thousands, except per share data) March 31, 2013 March 31, 2012
Interest Income    
Residential real estate loans  $ 7,260 7,784
Commercial loans 28,632 31,041
Consumer and other loans 7,864 9,170
Investment securities 14,199 19,889
Total interest income 57,955 67,884
Interest Expense    
Deposits 3,712 4,954
Securities sold under agreements to repurchase 227 299
Federal Home Loan Bank advances 2,651 3,381
Federal funds purchased and other borrowed funds 52 62
Subordinated debentures 816 902
Total interest expense 7,458 9,598
Net Interest Income 50,497 58,286
Provision for loan losses 2,100 8,625
Net interest income after provision for loan losses 48,397 49,661
Non-Interest Income    
Service charges and other fees 10,586 10,492
Miscellaneous loan fees and charges 1,089 946
Gain on sale of loans 9,089 6,813
Loss on sale of investments (137)
Other income 2,323 2,087
Total non-interest income 22,950 20,338
Non-Interest Expense    
Compensation and employee benefits 24,577 23,560
Occupancy and equipment 5,825 5,968
Advertising and promotions 1,548 1,402
Outsourced data processing 825 846
Other real estate owned 884 6,822
Federal Deposit Insurance Corporation premiums 1,304 1,712
Core deposit intangibles amortization 486 552
Other expense 7,985 8,183
Total non-interest expense 43,434 49,045
Income Before Income Taxes 27,913 20,954
Federal and state income tax expense 7,145 4,621
Net Income  $ 20,768 16,333
Basic earnings per share  $ 0.29 0.23
Diluted earnings per share  $ 0.29 0.23
Dividends declared per share  $ 0.14 0.13
Average outstanding shares - basic 71,965,665 71,915,073
Average outstanding shares - diluted 72,013,177 71,915,130
 
 
Glacier Bancorp, Inc.
Average Balance Sheet
 
     
  Three Months ended
March 31, 2013
Three Months ended
March 31, 2012
(Dollars in thousands) Average Balance Interest & Dividends Average Yield/Rate Average Balance Interest & Dividends Average Yield/Rate
Assets            
Residential real estate loans  $ 617,852 7,260 4.70%  $ 584,758 7,784 5.32%
Commercial loans 2,271,070 28,632 5.11% 2,290,236 31,041 5.44%
Consumer and other loans 587,433 7,864 5.43% 639,302 9,170 5.75%
Total loans 1 3,476,355 43,756 5.10% 3,514,296 47,995 5.48%
Tax-exempt investment securities 2 959,728 14,150 5.90% 867,621 13,955 6.43%
Taxable investment securities 3 2,686,727 4,772 0.71% 2,382,119 10,602 1.78%
Total earning assets 7,122,810 62,678 3.57% 6,764,036 72,552 4.30%
Goodwill and intangibles 112,037     114,138    
Non-earning assets 349,000     358,294    
Total assets  $ 7,583,847      $ 7,236,468    
Liabilities            
Non-interest bearing deposits  $ 1,141,181 —%  $ 1,003,604 —%
NOW accounts 965,799 273 0.11% 830,821 369 0.18%
Savings accounts 495,975 73 0.06% 427,129 91 0.09%
Money market deposit accounts 997,088 514 0.21% 874,239 600 0.28%
Certificate accounts 1,082,132 2,426 0.91% 1,071,999 3,285 1.23%
Wholesale deposits 4 579,188 426 0.30% 643,507 609 0.38%
FHLB advances 921,652 2,651 1.17% 1,011,711 3,381 1.34%
Repurchase agreements, federal funds purchased and other borrowed funds 427,693 1,095 1.04% 456,340 1,263 1.11%
Total funding liabilities 6,610,708 7,458 0.46% 6,319,350 9,598 0.61%
Other liabilities 57,767     50,850    
Total liabilities 6,668,475     6,370,200    
Stockholders' Equity            
Common stock 720     719    
Paid-in capital 641,997     642,869    
Retained earnings 220,438     181,972    
Accumulated other comprehensive income 52,217     40,708    
Total stockholders' equity 915,372     866,268    
Total liabilities and stockholders' equity  $ 7,583,847      $ 7,236,468    
Net interest income (tax-equivalent)    $ 55,220      $ 62,954  
Net interest spread (tax-equivalent)     3.11%     3.69%
Net interest margin (tax-equivalent)     3.14%     3.73%
             
1  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.
2  Includes tax effect of $4.3 million and $4.3 million on tax-exempt investment security income for the three months ended March 31, 2013 and 2012, respectively.
3  Includes tax effect of $381 thousand and $386 thousand on investment security tax credits for the three months ended March 31, 2013 and 2012, respectively.
4  Wholesale deposits include brokered deposits classified as NOW, money market deposit and certificate accounts.
 
Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
       
  Loans Receivable, by Loan Type % Change from % Change from
(Dollars in thousands) March 31,
2013
December 31,
2012
March 31,
2012
December 31,
2012
March 31, 
2012
           
Custom and owner occupied construction $ 36,607 40,327 38,540 (9)% (5)%
Pre-sold and spec construction 36,162 34,970 50,699 3% (29)%
Total residential construction 72,769 75,297 89,239 (3)% (18)%
Land development 78,524 80,132 98,315 (2)% (20)%
Consumer land or lots 100,722 104,229 118,689 (3)% (15)%
Unimproved land 49,904 53,459 61,462 (7)% (19)%
Developed lots for operative builders 15,713 16,675 23,910 (6)% (34)%
Commercial lots 17,717 19,654 26,228 (10)% (32)%
Other construction 68,046 56,109 32,503 21% 109%
Total land, lot, and other construction 330,626 330,258 361,107 % (8)%
Owner occupied 705,232 710,161 709,979 (1)% (1)%
Non-owner occupied 466,493 452,966 445,118 3% 5%
Total commercial real estate 1,171,725 1,163,127 1,155,097 1% 1%
Commercial and industrial 428,202 420,459 399,889 2% 7%
1st lien 684,968 738,854 667,341 (7)% 3%
Junior lien 79,549 82,083 92,578 (3)% (14)%
Total 1-4 family 764,517 820,937 759,919 (7)% 1%
Home equity lines of credit 306,606 319,779 342,693 (4)% (11)%
Other consumer 109,047 109,019 107,933 —% 1%
Total consumer 415,653 428,798 450,626 (3)% (8)%
Agriculture 146,606 145,890 146,943 —% —%
Other 161,782 158,160 147,919 2% 9%
Loans held for sale (88,035) (145,501) (77,528) (39)% 14%
Total $ 3,403,845 3,397,425 3,433,211 —% (1)%
 
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification
 
 

Non-performing Assets, by Loan Type
Non-
Accruing
Loans
Accruing
Loans 90  Days
or More Past Due
Other
Real Estate
Owned
(Dollars in thousands) March 31,
2013
December 31,
2012
March 31,
2012
March 31,
2013
March 31,
2013
March 31,
2013
             
Custom and owner occupied construction $ 1,322 1,343 2,688 1,322
Pre-sold and spec construction 1,101 1,603 9,085 778 323
Total residential construction 2,423 2,946 11,773 2,100 323
Land development 28,872 31,471 50,746 16,392 12,480
Consumer land or lots 5,800 6,459 8,271 2,862 37 2,901
Unimproved land 17,407 19,121 31,891 12,963 4,444
Developed lots for operative builders 2,177 2,393 8,918 1,339 838
Commercial lots 2,828 1,959 2,643 327 2,501
Other construction 5,181 5,105 5,128 192 4,989
Total land, lot and other construction 62,265 66,508 107,597 34,075 37 28,153
Owner occupied 14,097 15,662 20,818 8,850 5,247
Non-owner occupied 4,972 4,621 3,645 3,946 1,026
Total commercial real estate 19,069 20,283 24,463 12,796 6,273
Commercial and industrial 5,727 5,970 12,818 5,640 87
1st lien 23,341 25,739 29,199 18,961 172 4,208
Junior lien 6,366 6,660 10,749 6,274 92
Total 1-4 family 29,707 32,399 39,948 25,235 264 4,208
Home equity lines of credit 8,402 8,041 6,607 6,792 247 1,363
Other consumer 520 441 307 293 15 212
Total consumer 8,922 8,482 6,914 7,085 262 1,575
Agriculture 6,213 6,686 10,738 3,110 3,103
Other 1,068 253 343 815 253
Total $ 135,394 143,527 214,594 90,856 563 43,975
 
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
 
  Accruing 30-89 Days Delinquent Loans, by Loan Type % Change from % Change from
(Dollars in thousands) March 31,
2013
December 31,
2012
March 31,
2012
December 31,
2012  
March 31,
2012
           
Custom and owner occupied construction $ — 5 415 (100)% (100)%
Pre-sold and spec construction 394 893 303 (56)% 30%
Total residential construction 394 898 718 (56)% (45)%
Land development 1,437 191 870 652% 65%
Consumer land or lots 1,665 762 3,844 119% (57)%
Unimproved land 915 422 117 117% 682%
Developed lots for operative builders 303 422 253 (28)% 20%
Commercial lots 11 (100)% n/m
Other construction 122 n/m (100)%
Total land, lot and other construction 4,320 1,808 5,206 139% (17)%
Owner occupied 5,524 5,523 12,003 —% (54)%
Non-owner occupied 3,825 2,802 2,116 37% 81%
Total commercial real estate 9,349 8,325 14,119 12% (34)%
Commercial and industrial 3,873 1,905 4,490 103% (14)%
1st lien 8,254 7,352 10,861 12% (24)%
Junior lien 625 732 1,815 (15)% (66)%
Total 1-4 family 8,879 8,084 12,676 10% (30)%
Home equity lines of credit 1,238 4,164 2,609 (70)% (53)%
Other consumer 1,428 1,001 915 43% 56%
Total consumer 2,666 5,165 3,524 (48)% (24)%
Agriculture 2,785 912 1,174 205% 137%
Other 12 674 n/m (98)%
Total $ 32,278 27,097 42,581 19% (24)%
           
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) March 31,
2013 
December 31,
2012
March 31,
2012
March 31,
2013
March 31,
2013
           
Custom and owner occupied construction $ (1) 24 1
Pre-sold and spec construction (7) 2,489 1,919 7
Total residential construction (8) 2,513 1,919 8
Land development 68 3,035 1,236 205 137
Consumer land or lots (38) 4,003 1,195 160 198
Unimproved land 239 636 130 250 11
Developed lots for operative builders (22) 1,802 394 22 44
Commercial lots 242 362 (120) 244 2
Other construction (1) 1
Total land, lot and other construction 488 9,838 2,835 881 393
Owner occupied (305) 1,312 1,372 211 516
Non-owner occupied 12 597 546 30 18
Total commercial real estate (293) 1,909 1,918 241 534
Commercial and industrial 575 2,651 334 836 261
1st lien 181 5,257 893 232 51
Junior lien 71 3,464 1,176 145 74
Total 1-4 family 252 8,721 2,069 377 125
Home equity lines of credit 1,154 2,124 346 1,185 31
Other consumer (47) 262 36 91 138
Total consumer 1,107 2,386 382 1,276 169
Agriculture 3 125 3
Other (5) 44 98 5
Total $ 2,119 28,187 9,555 3,614 1,495

Visit our website at www.glacierbancorp.com

Michael J. Blodnick
(406) 751-4701
Ron J. Copher
(406) 751-7706