2nd Quarter 2019 Highlights:

  • Net income of $52.4 million for the current quarter, an increase of $8.0 million, or 18 percent, over the prior year second quarter net income of $44.4 million.
  • Current quarter diluted earnings per share of $0.61, an increase of 17 percent from the prior year second quarter diluted earnings per share of $0.52.
  • Current quarter organic loan growth was $270 million, or 13 percent annualized.
  • Core deposits organically grew $40.1 million, or 2 percent annualized, during the current quarter with non-interest bearing deposit growth of $120 million, or 16 percent annualized.
  • Net interest margin of 4.33 percent was stable compared to 4.34 percent in the prior quarter and increased 16 basis points over the prior year second quarter.  Loan yields increased 2 basis points in the current quarter  and the cost of core deposits remained unchanged.
  • Stable credit quality with non-performing assets as a percentage of subsidiary assets improving to 0.41 percent in the current quarter compared to 0.42 percent for the prior quarter and 0.71 percent from the prior year second quarter.
  • Dividend declared of $0.27 per share, or 4 percent increase over the prior quarter.  The dividend was the 137th consecutive quarterly dividend declared by the Company.
  • The Company completed the acquisition of FNB Bancorp, the holding company for The First National Bank of Layton, a community bank based in Layton, Utah, with total assets of $379 million.
  • The Company has received all regulatory approvals for the acquisition of Heritage Bancorp, the parent company of Heritage Bank of Nevada, a community bank based in Reno, Nevada, with total assets of $842 million at June 30, 2019.  The acquisition is expected to be completed effective July 31, 2019.

First Half of 2019 Highlights:

  • Net income of $101.5 million for the first half of 2019, an increase of $18.6 million, or 22 percent, over the first half of 2018 net income of $82.9 million.
  • Diluted earnings per share of $1.19, an increase of 19 percent from the prior year first six months diluted earnings per share of $1.00.
  • Organic loan growth was $309 million, or 7 percent annualized, for the first half of 2019.
  • Core deposits organically grew $110 million, or 2 percent annualized, during the current year with non-interest bearing deposit growth of $170 million, or 11 percent annualized.
  • Dividend declared of $0.53 per share, an increase of $0.04 per share, or 8 percent, over the prior year first six months dividends of $0.49.

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,
2019
 Mar 31,
2019
 Jun 30,
2018
 Jun 30,
2019
 Jun 30,
2018
Operating results         
Net income$52,392  49,132  44,384  101,524  82,943 
Basic earnings per share$0.61  0.58  0.53  1.19  1.00 
Diluted earnings per share$0.61  0.58  0.52  1.19  1.00 
Dividends declared per share$0.27  0.26  0.26  0.53  0.49 
Market value per share         
Closing$40.55  40.07  38.68  40.55  38.68 
High$43.44  45.47  41.47  45.47  41.47 
Low$38.65  37.58  35.77  37.58  35.77 
Selected ratios and other data         
Number of common stock shares outstanding86,637,394 84,588,199 84,516,650 86,637,394 84,516,650
Average outstanding shares - basic85,826,290 84,549,974 84,514,257 85,191,658 82,671,816
Average outstanding shares - diluted85,858,286 84,614,248 84,559,268 85,241,238 82,734,407
Return on average assets (annualized)1.69% 1.67% 1.53% 1.68% 1.52%
Return on average equity (annualized)12.82% 13.02% 12.07% 12.91% 11.99%
Efficiency ratio54.50% 55.37% 55.44% 54.93% 56.54%
Dividend payout ratio44.26% 44.83% 49.06% 44.54% 49.00%
Loan to deposit ratio90.27% 87.14% 84.92% 90.27% 84.92%
Number of full time equivalent employees2,703 2,634 2,605 2,703 2,605
Number of locations175 169 167 175 167
Number of ATMs228 222 221 228 221

KALISPELL, Mont., July 18, 2019 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $52.4 million for the current quarter, an increase of $8.0 million, or 18 percent, from the $44.4 million of net income for the prior year second quarter.  Diluted earnings per share for the current quarter was $0.61 per share, an increase of 17 percent from the prior year second quarter diluted earnings per share of $0.52.  Included in the current quarter was $1.8 million of acquisition-related expenses.  “We saw excellent loan growth this quarter supported by a stable net interest margin, consistent credit performance and efficiency at targeted levels.  Growth in earnings per share and interest income were strong,” said Randy Chesler, President and Chief Executive Officer.  “Hats off to the Glacier divisions for delivering another quarter of strong results and we welcome First Community Bank Utah to the Glacier team.”

Net income for the first six months ended June 30, 2019 was $101.5 million, an increase of $18.6 million, or 22 percent, from the $82.9 million of net income for the first six months of the prior year.  Diluted earnings per share for the first half of the current year was $1.19 per share, an increase of $0.19, or 19 percent, from the diluted earnings per share of $1.00 for the same period in the prior year.

In the second quarter of 2019, the Company announced the signing of a definitive agreement to acquire Heritage Bancorp, the bank holding company for Heritage Bank of Nevada, a community bank based in Reno, Nevada (collectively, “Heritage”).  Heritage provides banking services to individuals and businesses throughout Northern Nevada with seven banking offices located in Carson City, Gardnerville, Reno and Sparks.  As of June 30, 2019, Heritage had total assets of $842 million, gross loans of $612 million and total deposits of $717 million.  The acquisition has received the required regulatory approvals, is subject to other customary conditions of closing and is expected to be completed effective July 31, 2019.  Upon closing of the transaction, Heritage will become the Company’s sixteenth Bank division.

On April 30, 2019, the Company completed the acquisition of FNB Bancorp, the holding company for The First National Bank of Layton, a community bank based in Layton, Utah (“FNB”).  FNB provides banking services to individuals and businesses throughout Utah with six banking offices located in Layton, Bountiful, Clearfield, and Draper.  Upon closing of the transaction, FNB became First Community Bank Utah, the Company’s fifteenth Bank division.  The Company’s results of operations and financial condition include the acquisition beginning on the acquisition date and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:

 FNB
(Dollars in thousands)April 30,
2019
Total assets$379,155 
Debt securities47,247 
Loans receivable245,485 
Non-interest bearing deposits93,647 
Interest bearing deposits180,999 
Borrowings7,273 

Asset Summary

         $ Change from
(Dollars in thousands)Jun 30,
2019
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
Cash and cash equivalents$231,209  202,527  203,790  368,132  28,682  27,419  (136,923)
Debt securities, available-for-sale2,470,634  2,522,322  2,571,663  2,177,352  (51,688) (101,029) 293,282 
Debt securities, held-to-maturity252,097  255,572  297,915  620,409  (3,475) (45,818) (368,312)
Total debt securities2,722,731  2,777,894  2,869,578  2,797,761  (55,163) (146,847) (75,030)
Loans receivable             
Residential real estate920,715  884,732  887,742  835,382  35,983  32,973  85,333 
Commercial real estate4,959,863  4,686,082  4,657,561  4,384,781  273,781  302,302  575,082 
Other commercial2,076,605  1,909,452  1,911,171  1,940,435  167,153  165,434  136,170 
Home equity596,041  562,381  544,688  511,043  33,660  51,353  84,998 
Other consumer288,553  283,423  286,387  277,031  5,130  2,166  11,522 
Loans receivable8,841,777  8,326,070  8,287,549  7,948,672  515,707  554,228  893,105 
Allowance for loan and lease losses(129,054) (129,786) (131,239) (131,564) 732  2,185  2,510 
Loans receivable, net8,712,723  8,196,284  8,156,310  7,817,108  516,439  556,413  895,615 
Other assets1,009,698  897,074  885,806  914,643  112,624  123,892  95,055 
Total assets$12,676,361  12,073,779  12,115,484  11,897,644  602,582  560,877  778,717 

Total debt securities of $2.723 billion at June 30, 2019 decreased $55.2 million, or 2 percent, during the current quarter and decreased $75.0 million, or 3 percent, from the prior year second quarter.   Debt securities represented 21 percent of total assets at June 30, 2019 compared to 24 percent of total assets at December 31, 2018 and June 30, 2018.

The loan portfolio of $8.842 billion increased $270 million, or 13 percent annualized, during the current quarter excluding the FNB acquisition.  The loan category with the largest increase was other commercial loans which increased $114 million, or 6 percent.  Excluding the acquisition, the loan portfolio increased $648 million, or 8 percent, since June 30, 2018, with the largest increase in commercial real estate loans, which increased $397 million, or 9 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,
2019
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
Allowance for loan and lease losses       
Balance at beginning of period$131,239  131,239  129,568  129,568 
Provision for loan losses57  57  9,953  5,513 
Charge-offs(6,200) (3,341) (17,807) (7,611)
Recoveries3,958  1,831  9,525  4,094 
Balance at end of period$129,054  129,786  131,239  131,564 
Other real estate owned$7,281  8,125  7,480  13,616 
Accruing loans 90 days or more past due3,463  2,451  2,018  12,751 
Non-accrual loans41,195  40,269  47,252  58,170 
Total non-performing assets$51,939  50,845  56,750  84,537 
Non-performing assets as a percentage of subsidiary assets0.41% 0.42% 0.47% 0.71%
Allowance for loan and lease losses as a percentage of non-performing loans289% 304% 266% 186%
Allowance for loan and lease losses as a percentage of total loans1.46% 1.56% 1.58% 1.66%
Net charge-offs as a percentage of total loans0.03% 0.02% 0.10% 0.04%
Accruing loans 30-89 days past due$37,937  36,894  33,567  39,650 
Accruing troubled debt restructurings$25,019  24,468  25,833  34,991 
Non-accrual troubled debt restructurings$6,041  6,747  10,660  18,380 
U.S. government guarantees included in non-performing assets$2,785  2,649  4,811  7,265 

Non-performing assets of $51.9 million at June 30, 2019 increased $1.1 million, or 2 percent, over the prior quarter and decreased $32.6 million, or 39 percent, over the prior year second quarter.  Non-performing assets as a percentage of subsidiary assets at June 30, 2019 was 0.41 percent, a decrease of 1 basis point from the prior quarter, and a decrease of 30 basis points from the prior year second quarter.  Early stage delinquencies (accruing loans 30-89 days past due) of $37.9 million at June 30, 2019 increased $1.0 million from the prior quarter and decreased $1.7 million from the prior year second quarter.  Early stage delinquencies as a percentage of loans at June 30, 2019 was 0.43 percent, which was a decrease of 1 basis point from prior quarter and a decrease of 7 basis points from prior year second quarter.  The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at June 30, 2019 was 1.46 percent, which was a 10 basis points decrease compared to the prior quarter and a decrease of 20 basis points from a year ago.  The decrease was attributable to stabilizing credit quality and the addition of loans from the FNB acquisition which were added to the portfolio on a fair value basis and as a result did not require an allowance at acquisition date.

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 2019$  $732  1.46% 0.43% 0.41%
First quarter 201957  1,510  1.56% 0.44% 0.42%
Fourth quarter 20181,246  2,542  1.58% 0.41% 0.47%
Third quarter 20183,194  2,223  1.63% 0.31% 0.61%
Second quarter 20184,718  762  1.66% 0.50% 0.71%
First quarter 2018795  2,755  1.66% 0.59% 0.64%
Fourth quarter 20172,886  2,894  1.97% 0.57% 0.68%
Third quarter 20173,327  3,628  1.99% 0.45% 0.67%

Net charge-offs for the current quarter were $732 thousand compared to $1.5 million for the prior quarter and $762 thousand from the same quarter last year.  There was no current quarter provision for loan losses compared to $57 thousand in the prior quarter and $4.7 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,
2019
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
Deposits             
Non-interest bearing deposits$3,265,077  3,051,119  3,001,178  2,914,885  213,958  263,899  350,192 
NOW and DDA accounts2,487,806  2,383,806  2,391,307  2,354,214  104,000  96,499  133,592 
Savings accounts1,412,046  1,373,544  1,346,790  1,330,637  38,502  65,256  81,409 
Money market deposit accounts1,647,372  1,689,962  1,684,284  1,723,681  (42,590) (36,912) (76,309)
Certificate accounts897,625  896,731  901,484  927,608  894  (3,859) (29,983)
Core deposits, total9,709,926  9,395,162  9,325,043  9,251,025  314,764  384,883  458,901 
Wholesale deposits144,949  192,953  168,724  172,550  (48,004) (23,775) (27,601)
Deposits, total9,854,875  9,588,115  9,493,767  9,423,575  266,760  361,108  431,300 
Repurchase agreements494,651  489,620  396,151  361,515  5,031  98,500  133,136 
Federal Home Loan Bank advances319,996  154,683  440,175  395,037  165,313  (120,179) (75,041)
Other borrowed funds14,765  14,738  14,708  9,917  27  57  4,848 
Subordinated debentures139,912  134,048  134,051  134,058  5,864  5,861  5,854 
Other liabilities164,786  141,725  120,778  99,550  23,061  44,008  65,236 
Total liabilities$10,988,985  10,522,929  10,599,630  10,423,652  466,056  389,355  565,333 

Excluding the acquisition, core deposits of $9.710 billion as of June 30, 2019 increased $110 million, or 2 percent annualized, from the prior quarter and increased $184 million, or 2 percent, from the prior year second quarter.  Non-interest bearing deposits organically increased $120 million, or 16 percent annualized, over the prior quarter and increased $257 million, or 9 percent, over the prior year second quarter.

Federal Home Loan Bank (“FHLB”) advances of $320 million at June 30, 2019, increased $165 million over the prior quarter and decreased $75.0 million over the prior year second quarter.  FHLB advances and wholesale deposits will continue to fluctuate to supplement liquidity needs during the year.

Stockholders’ Equity Summary

         $ Change from
(Dollars in thousands, except per share data)Jun 30,
2019
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
Common equity$1,643,928  1,526,963  1,525,281  1,494,274  116,965  118,647  149,654 
Accumulated other comprehensive  income (loss)43,448  23,887  (9,427) (20,282) 19,561  52,875  63,730 
Total stockholders’ equity1,687,376  1,550,850  1,515,854  1,473,992  136,526  171,522  213,384 
Goodwill and core deposit intangible, net(385,533) (337,134) (338,828) (342,243) (48,399) (46,705) (43,290)
Tangible stockholders’ equity$1,301,843  1,213,716  1,177,026  1,131,749  88,127  124,817  170,094 


Stockholders’ equity to total assets13.31% 12.84% 12.51% 12.39%      
Tangible stockholders’ equity to total tangible assets10.59% 10.34% 9.99% 9.79%      
Book value per common share$19.48  18.33  17.93  17.44  1.15  1.55  2.04 
Tangible book value per common share$15.03  14.35  13.93  13.39  0.68  1.10  1.64 

Tangible stockholders’ equity of $1.302 billion at June 30, 2019 increased $88.1 million compared to the prior quarter which was the result of $87.1 million of Company stock issued for the acquisition of FNB, earnings retention and an increase in other comprehensive income; such increases more than offset the increase in goodwill and core deposits associated with the acquisition.  Tangible stockholders’ equity increased $170 million over the prior year second quarter which was the result of earnings retention, an increase in other comprehensive income, and the impact from the FNB acquisition which was offset by a decrease of $25.5 million from the cumulative-effect adjustments related to the adoption of new accounting standards.  Tangible book value per common share of $15.03 at current quarter end increased $0.68 per share from the prior quarter and increased $1.64 per share from a year ago.

Cash Dividends
On June 25, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.27 per share.  The dividend was payable July 18, 2019 to shareholders of record on July 9, 2019.  The dividend was the 137th consecutive quarterly dividend.  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, 2019
Compared to March 31, 2019, and June 30, 2018

Income Summary

 Three Months ended $ Change from
(Dollars in thousands)Jun 30,
2019
 Mar 31,
2019
 Jun 30,
2018
 Mar 31,
2019
 Jun 30,
2018
Net interest income         
Interest income$132,385  126,116  117,715  6,269  14,670 
Interest expense12,089  10,904  9,161  1,185  2,928 
Total net interest income120,296  115,212  108,554  5,084  11,742 
Non-interest income         
Service charges and other fees20,025  18,015  18,804  2,010  1,221 
Miscellaneous loan fees and charges1,192  967  2,243  225  (1,051)
Gain on sale of loans7,762  5,798  8,142  1,964  (380)
Gain (loss) on sale of investments134  213  (56) (79) 190 
Other income1,721  3,481  2,695  (1,760) (974)
Total non-interest income30,834  28,474  31,828  2,360  (994)
Total income$151,130  143,686  140,382  7,444  10,748 
Net interest margin (tax-equivalent)4.33% 4.34% 4.17%    

Net Interest Income
The current quarter net interest income of $120 million increased $5.1 million, or 4 percent, over the prior quarter and increased $11.7 million, or 11 percent, from the prior year second quarter.  The increase in net interest income over the prior quarter and prior year second quarter was primarily driven by an increase in interest income on commercial loans.  Interest income on commercial loans increased $4.5 million, or 5 percent, from the prior quarter and increased $12.2 million, or 16 percent, from the prior year second quarter.

The current quarter interest expense of $12.1 million increased $1.2 million, or 11 percent, over the prior quarter which was driven by the increase in FHLB advances which supplemented the liquidity needs during the current quarter.  The current quarter interest expense increased $3.0 million, or 32 percent, from the prior year second quarter and was primarily due to the increased amount of deposits and borrowings.  The total cost of funding (including non-interest bearing deposits) for the current quarter was 45 basis points compared to 43 basis points for the prior quarter and 36 basis points for the prior year second quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.33 percent compared to 4.34 percent in the prior quarter.  The yield on loans increased 2 basis points and was offset by the 2 basis points increase in funding cost related to the increased short-term borrowings while the cost of core deposits remained unchanged.  The current quarter net interest margin included 5 basis points of discount accretion on acquired loans compared to 6 basis points in the prior quarter.  The current quarter also included 1 basis point from the recovery of interest on loans previously placed on non-accrual compared to 2 basis points in the prior quarter.  Excluding the 5 basis points from discount accretion and 1 basis point from non-accrual interest, the core net interest margin was 4.27 percent compared to 4.26 in the prior quarter and 4.11 percent in the prior year ago second quarter.  The current quarter net interest margin increased 16 basis points over the prior year second quarter net interest margin of 4.17 percent.  The increase in the margin from the prior year second quarter resulted from the remix of earning assets to higher yielding loans and the increased yields on the loan portfolio which more than offset the increase in funding costs.  “The stable net interest margin reflects discipline in loan pricing by each of the Bank divisions,” said Ron Copher, Chief Financial Officer. “In addition, the Bank divisions continue to focus on growing a low-cost core deposit base, especially non-interest bearing deposits.”

Non-interest Income
Non-interest income for the current quarter totaled $30.8 million which was an increase of $2.4 million, or 8 percent, over the prior quarter and a decrease of $994 thousand, or 3 percent, over the same quarter last year.  Service charges and other fees of $20.0 million for the current quarter increased $2.0 million, or 11 percent, from the prior quarter due primarily to seasonality.  Service charges and other fees for the current quarter increased $1.2 million, or 6 percent, from the prior year second quarter which was due to the increased number of accounts driven by organic growth.  Gain on the sale of loans of $7.8 million, increased $2.0 million, or 34 percent, compared to the prior quarter as a result of seasonality.

Non-interest Expense Summary

 Three Months ended $ Change from
(Dollars in thousands)Jun 30,
2019
 Mar 31,
2019
 Jun 30,
2018
 Mar 31,
2019
 Jun 30,
2018
Compensation and employee benefits$51,973  52,728  49,023  (755) 2,950 
Occupancy and equipment8,180  8,437  7,662  (257) 518 
Advertising and promotions2,767  2,388  2,530  379  237 
Data processing4,062  3,892  4,241  170  (179)
Other real estate owned191  139  211  52  (20)
Regulatory assessments and insurance1,848  1,285  1,329  563  519 
Core deposit intangibles amortization1,865  1,694  1,748  171  117 
Other expenses15,284  12,267  15,051  3,017  233 
Total non-interest expense$86,170  82,830  81,795  3,340  4,375 

Total non-interest expense of $86.2 million for the current quarter increased $3.3 million, or 4 percent, over the prior quarter and increased $4.4 million, or 5 percent, over the prior year second quarter.  Compensation and employee benefits increased by $2.9 million, or 6 percent, from the prior year second quarter due to the acquisition and an increased number of employees driven by organic growth.  Occupancy and equipment expense increased $518 thousand or 7 percent, over the prior year second quarter as a result of the current year acquisition and general cost increases.  Other expenses of $15.3 million, increased $3.0 million, or 25 percent, from the prior quarter and was primarily attributable to acquisition-related expenses.  Acquisition-related expenses were $1.8 million during the current quarter compared to $214 thousand in the prior quarter and $2.9 million in the prior year second quarter.

Federal and State Income Tax Expense
Tax expense during the second quarter of 2019 was $12.6 million, an increase of $901 thousand, or 8 percent, compared to the prior quarter and an increase of $3.1 million, or 33 percent, from the prior year second quarter.  The effective tax rate in the current and prior quarter was 19 percent which compares to 19 percent in the prior quarter and 18 percent in the prior year second quarter.

Efficiency Ratio
The current quarter efficiency ratio was 54.50 percent, an 87 basis points improvement from the prior quarter efficiency ratio of 55.37 percent and was driven by controlling operating costs combined with the increase in net interest income.  The current quarter efficiency ratio improved 94 basis points from the prior year second quarter efficiency ratio of 55.44 percent and was driven by the increase in net interest income that more than offset the increased operating costs as a result of the Company’s growth.


Operating Results for Six Months Ended June 30, 2019
Compared to June 30, 2018

Income Summary

 Six Months ended    
(Dollars in thousands)Jun 30,
2019
 Jun 30,
2018
 $ Change % Change
Net interest income       
Interest income$258,501  $220,781  $37,720  17%
Interest expense22,993  16,935  6,058  36%
Total net interest income235,508  203,846  31,662  16%
Non-interest income       
Service charges and other fees38,040  35,675  2,365  7%
Miscellaneous loan fees and charges2,159  3,720  (1,561) (42)%
Gain on sale of loans13,560  14,239  (679) (5)%
Loss on sale of investments347  (389) 736  (189)%
Other income5,202  4,669  533  11%
Total non-interest income59,308  57,914  1,394  2%
 $294,816  $261,760  $33,056  13%
Net interest margin (tax-equivalent)4.33% 4.14%    

Net Interest Income
Net interest income for the first six months of 2019 increased $31.7 million, or 16 percent, from the first six months of 2018 and was primarily attributable to a $30.2 million increase in interest income from commercial loans.  Interest expense of $23.0 million for the first half of 2019 increased $6.1 million, or 36 percent over the prior year same period as a result of increased deposits and borrowings combined with interest rate increases.  The total funding cost (including non-interest bearing deposits) for 2019 was 44 basis points compared to 36 basis points for 2018.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first six months of 2019 was 4.33 percent, a 19 basis points increase from the net interest margin of 4.14 percent for the first half of 2018.  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 relatively stable cost of funds.

Non-interest Income
Non-interest income of $59.3 million for the first six months of 2019 increased $1.4 million, or 2 percent, over the same period last year.  Service charges and other fees of $38.0 million for 2019 increased $2.4 million, or 7 percent, from the prior year as a result of an increased number of deposit accounts from organic growth and acquisitions.

Non-interest Expense Summary

 Six Months ended    
(Dollars in thousands)Jun 30,
2019
 Jun 30,
 2018
 $ Change % Change
Compensation and employee benefits$104,701  $94,744  $9,957  11%
Occupancy and equipment16,617  14,936  1,681  11%
Advertising and promotions5,155  4,700  455  10%
Data processing7,954  8,208  (254) (3)%
Other real estate owned330  283  47  17%
Regulatory assessments and insurance3,133  2,535  598  24%
Core deposit intangibles amortization3,559  2,804  755  27%
Other expenses27,551  27,212  339  1%
Total non-interest expense$169,000  $155,422  $13,578  9%

Total non-interest expense of $169 million for the first half of 2019 increased $13.6 million, or 9 percent, over the prior year first half.  Compensation and employee benefits for the first six months of 2019 increased $10.0 million, or 11 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 2019 increased $1.7 million, or 11 percent from the prior year as a result of increased cost from acquisitions and general cost increases.

Provision for Loan Losses
The provision for loan losses was $57 thousand for the first half of 2019, a decrease of $4.7 million from the same period in the prior year.  Net charge-offs during the first half of 2019 were $2.2 million compared to $3.5 million during the same period in 2018.

Federal and State Income Tax Expense
Tax expense of $24.2 million in the first half of 2019 increased $6.4 million, or 36 percent, over the prior year same period.  The effective tax rate year-to-date in 2019 was 19 percent compared to 18 percent in the prior year same period.

Efficiency Ratio
The efficiency ratio of 54.93 percent for the first six months of 2019 improved 161 basis points from the prior year first six months efficiency ratio of 56.54 percent and was driven by the increase in net interest income that more than offset the increased operating costs.

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;
  • costs or difficulties related to the completion and integration of acquisitions;
  • the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
  • reduced demand for banking products and services;
  • the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain (and maintain) customers;
  • competition among financial institutions in the Company's markets may increase significantly;
  • the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
  • the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
  • consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
  • dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
  • material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
  • natural disasters, including fires, floods, earthquakes, and other unexpected events;
  • the Company’s success in managing risks involved in the foregoing; and
  • the effects of any reputational damage to the Company resulting from any of the foregoing.

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

Conference Call Information

A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, July 19, 2019. 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 7382835. To participate on the webcast, log on to: https://edge.media-server.com/m6/p/g6hp4cea. 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 7382835 by August 2, 2019.

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 operating 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; The Foothills Bank, Yuma, operating in Arizona; and First Community Bank Utah, Layton, operating in Utah.


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition

(Dollars in thousands, except per share data)June 30,
2019
 March 31,
2019
 December 31,
2018
 June 30,
2018
Assets       
Cash on hand and in banks$181,526  139,333  161,782  174,239 
Federal funds sold  115     
Interest bearing cash deposits49,683  63,079  42,008  193,893 
Cash and cash equivalents231,209  202,527  203,790  368,132 
Debt securities, available-for-sale2,470,634  2,522,322  2,571,663  2,177,352 
Debt securities, held-to-maturity252,097  255,572  297,915  620,409 
Total debt securities2,722,731  2,777,894  2,869,578  2,797,761 
Loans held for sale, at fair value54,711  29,389  33,156  53,788 
Loans receivable8,841,777  8,326,070  8,287,549  7,948,672 
Allowance for loan and lease losses(129,054) (129,786) (131,239) (131,564)
Loans receivable, net8,712,723  8,196,284  8,156,310  7,817,108 
Premises and equipment, net296,915  277,619  241,528  240,373 
Other real estate owned7,281  8,125  7,480  13,616 
Accrued interest receivable58,567  57,367  54,408  55,973 
Deferred tax asset3,371  12,554  23,564  34,211 
Core deposit intangible, net54,646  47,548  49,242  52,708 
Goodwill330,887  289,586  289,586  289,535 
Non-marketable equity securities23,031  16,435  27,871  26,107 
Bank-owned life insurance93,543  82,819  82,320  81,379 
Other assets86,746  75,632  76,651  66,953 
Total assets$12,676,361  12,073,779  12,115,484  11,897,644 
Liabilities       
Non-interest bearing deposits$3,265,077  3,051,119  3,001,178  2,914,885 
Interest bearing deposits6,589,798  6,536,996  6,492,589  6,508,690 
Securities sold under agreements to repurchase494,651  489,620  396,151  361,515 
FHLB advances319,996  154,683  440,175  395,037 
Other borrowed funds14,765  14,738  14,708  9,917 
Subordinated debentures139,912  134,048  134,051  134,058 
Accrued interest payable5,091  4,709  4,252  3,952 
Other liabilities159,695  137,016  116,526  95,598 
Total liabilities10,988,985  10,522,929  10,599,630  10,423,652 
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 authorized866  846  845  845 
Paid-in capital1,139,289  1,051,299  1,051,253  1,049,724 
Retained earnings - substantially restricted503,773  474,818  473,183  443,705 
Accumulated other comprehensive income (loss)43,448  23,887  (9,427) (20,282)
Total stockholders’ equity1,687,376  1,550,850  1,515,854  1,473,992 
Total liabilities and stockholders’ equity$12,676,361  12,073,779  12,115,484  11,897,644 


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

 Three Months ended Six Months ended
(Dollars in thousands, except per share data)June 30,
2019
 March 31,
2019
 June 30,
2018
 June 30,
2019
 June 30,
2018
Interest Income         
Debt securities$21,892  21,351  22,370  43,243  42,512 
Residential real estate loans11,410  10,779  10,149  22,189  18,934 
Commercial loans88,043  83,539  75,824  171,582  141,339 
Consumer and other loans11,040  10,447  9,372  21,487  17,996 
Total interest income132,385  126,116  117,715  258,501  220,781 
Interest Expense         
Deposits5,624  5,341  4,617  10,965  8,533 
Securities sold under agreements to repurchase886  802  486  1,688  971 
Federal Home Loan Bank advances3,847  3,055  2,513  6,902  4,602 
Other borrowed funds38  38  26  76  42 
Subordinated debentures1,694  1,668  1,519  3,362  2,787 
Total interest expense12,089  10,904  9,161  22,993  16,935 
Net Interest Income120,296  115,212  108,554  235,508  203,846 
Provision for loan losses  57  4,718  57  5,513 
Net interest income after provision for loan losses120,296  115,155  103,836  235,451  198,333 
Non-Interest Income         
Service charges and other fees20,025  18,015  18,804  38,040  35,675 
Miscellaneous loan fees and charges1,192  967  2,243  2,159  3,720 
Gain on sale of loans7,762  5,798  8,142  13,560  14,239 
Gain (loss) on sale of debt securities134  213  (56) 347  (389)
Other income1,721  3,481  2,695  5,202  4,669 
Total non-interest income30,834  28,474  31,828  59,308  57,914 
Non-Interest Expense         
Compensation and employee benefits51,973  52,728  49,023  104,701  94,744 
Occupancy and equipment8,180  8,437  7,662  16,617  14,936 
Advertising and promotions2,767  2,388  2,530  5,155  4,700 
Data processing4,062  3,892  4,241  7,954  8,208 
Other real estate owned191  139  211  330  283 
Regulatory assessments and insurance1,848  1,285  1,329  3,133  2,535 
Core deposit intangibles amortization1,865  1,694  1,748  3,559  2,804 
Other expenses15,284  12,267  15,051  27,551  27,212 
Total non-interest expense86,170  82,830  81,795  169,000  155,422 
Income Before Income Taxes64,960  60,799  53,869  125,759  100,825 
Federal and state income tax expense12,568  11,667  9,485  24,235  17,882 
Net Income$52,392  49,132  44,384  101,524  82,943 


Glacier Bancorp, Inc.
Average Balance Sheets

 Three Months ended
 
 6/30/2019 3/31/2019
(Dollars in thousands)
 Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
 Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
Assets           
Residential real estate loans$938,467  $11,410  4.86% $917,324  $10,779  4.70%
Commercial loans 16,803,541  89,191  5.26% 6,524,190  84,613  5.26%
Consumer and other loans868,733  11,040  5.10% 839,011  10,447  5.05%
Total loans 28,610,741  111,641  5.20% 8,280,525  105,839  5.18%
Tax-exempt debt securities 3957,177  9,982  4.17% 960,569  9,950  4.14%
Taxable debt securities 41,911,173  14,246  2.98% 1,845,677  13,729  2.98%
Total earning assets11,479,091  135,869  4.75% 11,086,771  129,518  4.74%
Goodwill and intangibles351,466      337,963     
Non-earning assets584,459      520,353     
Total assets$12,415,016      $11,945,087     
Liabilities           
Non-interest bearing deposits$3,084,404  $  % $2,943,770  $  %
NOW and DDA accounts2,394,505  985  0.17% 2,320,928  961  0.17%
Savings accounts1,389,548  253  0.07% 1,359,807  234  0.07%
Money market deposit accounts1,662,545  1,125  0.27% 1,690,305  1,010  0.24%
Certificate accounts902,134  2,222  0.99% 905,005  2,014  0.90%
Total core deposits9,433,136  4,585  0.19% 9,219,815  4,219  0.19%
Wholesale deposits 5162,495  1,039  2.56% 169,361  1,122  2.69%
FHLB advances476,204  3,847  3.20% 352,773  3,055  3.46%
Repurchase agreements and  other borrowed funds593,990  2,618  1.77% 556,325  2,508  1.83%
Total funding liabilities10,665,825  12,089  0.45% 10,298,274  10,904  0.43%
Other liabilities109,480      116,143     
Total liabilities10,775,305      10,414,417     
Stockholders’ Equity           
Common stock860      846     
Paid-in capital1,110,138      1,051,261     
Retained earnings500,015      471,626     
Accumulated other comprehensive income28,698      6,937     
Total stockholders’ equity1,639,711      1,530,670     
Total liabilities and stockholders’ equity$12,415,016      $11,945,087     
Net interest income (tax-equivalent)  $123,780      $118,614   
Net interest spread (tax-equivalent)    4.30%     4.31%
Net interest margin (tax-equivalent)    4.33%     4.34%

______________________________

1    Includes tax effect of $1.1 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2019 and March 31, 2019.
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 $2.1 million and $2.0 million on tax-exempt debt securities income for the three months ended June 30, 2019 and March 31, 2019, respectively.
4    Includes tax effect of $294 thousand and $293 thousand on federal income tax credits for the three months ended June 30, 2019 and March 31, 2019.
5    Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.
Average Balance Sheets (continued)

 Three Months ended
 
 6/30/2019 6/30/2018
(Dollars in thousands)
 Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
 Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
Assets           
Residential real estate loans$938,467  $11,410  4.86% $874,839  $10,149  4.64%
Commercial loans 16,803,541  89,191  5.26% 6,158,095  76,834  5.00%
Consumer and other loans868,733  11,040  5.10% 761,751  9,372  4.93%
Total loans 28,610,741  111,641  5.20% 7,794,685  96,355  4.96%
Tax-exempt debt securities 3957,177  9,982  4.17% 1,085,520  12,634  4.66%
Taxable debt securities 41,911,173  14,246  2.98% 1,931,846  12,630  2.62%
Total earning assets11,479,091  135,869  4.75% 10,812,051  121,619  4.51%
Goodwill and intangibles351,466      343,201     
Non-earning assets584,459      473,750     
Total assets$12,415,016      $11,629,002     
Liabilities           
Non-interest bearing deposits$3,084,404  $  % $2,800,719  $  %
NOW and DDA accounts2,394,505  985  0.17% 2,316,927  1,009  0.17%
Savings accounts1,389,548  253  0.07% 1,319,966  231  0.07%
Money market deposit accounts1,662,545  1,125  0.27% 1,746,960  856  0.20%
Certificate accounts902,134  2,222  0.99% 941,099  1,592  0.68%
Total core deposits9,433,136  4,585  0.19% 9,125,671  3,688  0.16%
Wholesale deposits 5162,495  1,039  2.56% 153,127  929  2.43%
FHLB advances476,204  3,847  3.20% 290,391  2,513  3.42%
Repurchase agreements and  other borrowed funds593,990  2,618  1.77% 510,636  2,031  1.60%
Total funding liabilities10,665,825  12,089  0.45% 10,079,825  9,161  0.36%
Other liabilities109,480      74,600     
Total liabilities10,775,305      10,154,425     
Stockholders’ Equity           
Common stock860      845     
Paid-in capital1,110,138      1,049,270     
Retained earnings500,015      443,607     
Accumulated other comprehensive  income (loss)28,698      (19,145)    
Total stockholders’ equity1,639,711      1,474,577     
Total liabilities and stockholders’ equity$12,415,016      $11,629,002     
Net interest income (tax-equivalent)  $123,780      $112,458   
Net interest spread (tax-equivalent)    4.30%     4.15%
Net interest margin (tax-equivalent)    4.33%     4.17%

______________________________

1    Includes tax effect of $1.1 million and $1.0 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2019 and 2018, 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 $2.0 million and $2.6 million on tax-exempt debt securities income for the three months ended June 30, 2019 and 2018, respectively.
4    Includes tax effect of $294 thousand and $305 thousand on federal income tax credits for the three months ended June 30, 2019 and 2018.
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
 
 6/30/2019 6/30/2018
(Dollars in thousands)
 Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
 Average
Balance
 Interest &
Dividends
 Average
Yield/
Rate
Assets           
Residential real estate loans$927,953  $22,189  4.78% $829,579  $18,934  4.56%
Commercial loans 16,664,637  173,804  5.26% 5,856,533  143,308  4.93%
Consumer and other loans853,954  21,487  5.07% 740,569  17,996  4.90%
Total loans 28,446,544  217,480  5.19% 7,426,681  180,238  4.89%
Tax-exempt debt securities 3958,864  19,932  4.16% 1,089,605  25,429  4.67%
Taxable debt securities 41,878,606  27,975  2.98% 1,793,849  22,902  2.55%
Total earning assets11,284,014  265,387  4.74% 10,310,135  228,569  4.47%
Goodwill and intangibles344,752      281,673     
Non-earning assets552,583      432,533     
Total assets$12,181,349      $11,024,341     
Liabilities           
Non-interest bearing deposits$3,014,476  $  % $2,637,342  $  %
NOW and DDA accounts2,357,920  1,946  0.17% 2,165,039  1,827  0.17%
Savings accounts1,374,759  487  0.07% 1,252,760  423  0.07%
Money market deposit accounts1,676,348  2,135  0.26% 1,689,730  1,576  0.19%
Certificate accounts903,562  4,236  0.95% 908,940  2,911  0.65%
Total core deposits9,327,065  8,804  0.19% 8,653,811  6,737  0.16%
Wholesale deposits 5165,909  2,161  2.63% 151,362  1,796  2.39%
FHLB advances414,830  6,902  3.31% 257,800  4,602  3.55%
Repurchase agreements and  other borrowed funds575,262  5,126  1.80% 516,108  3,800  1.48%
Total funding liabilities10,483,066  22,993  0.44% 9,579,081  16,935  0.36%
Other liabilities112,793      50,421     
Total liabilities10,595,859      9,629,502     
Stockholders’ Equity           
Common stock853      827     
Paid-in capital1,080,861      978,046     
Retained earnings485,898      432,143     
Accumulated other comprehensive  income (loss)17,878      (16,177)    
Total stockholders’ equity1,585,490      1,394,839     
Total liabilities and stockholders’ equity$12,181,349      $11,024,341     
Net interest income (tax-equivalent)  $242,394      $211,634   
Net interest spread (tax-equivalent)    4.30%     4.11%
Net interest margin (tax-equivalent)    4.33%     4.14%

______________________________

1    Includes tax effect of $2.2 million and $2.0 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2019 and 2018, 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 $4.1 million and $5.2 million on tax-exempt investment securities income for the six months ended June 30, 2019 and 2018, respectively.
4    Includes tax effect of $587 thousand and $609 thousand on federal income tax credits for the six months ended June 30, 2019 and 2018, 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,
2019
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
Custom and owner occupied construction$140,186  $126,820  $126,595  $138,171  11% 11% 1%
Pre-sold and spec construction171,464  135,137  121,938  96,008  27% 41% 79%
Total residential construction311,650  261,957  248,533  234,179  19% 25% 33%
Land development120,052  126,417  137,814  108,641  (5)% (13)% 11%
Consumer land or lots128,544  125,818  127,775  110,846  2% 1% 16%
Unimproved land74,244  75,113  83,579  72,150  (1)% (11)% 3%
Developed lots for operative builders14,117  16,171  17,061  12,708  (13)% (17)% 11%
Commercial lots57,447  35,511  34,096  27,661  62% 68% 108%
Other construction453,782  454,965  520,005  478,037  % (13)% (5)%
Total land, lot, and other construction848,186  833,995  920,330  810,043  2% (8)% 5%
Owner occupied1,418,190  1,367,530  1,343,563  1,302,737  4% 6% 9%
Non-owner occupied1,780,988  1,662,390  1,605,960  1,495,532  7% 11% 19%
Total commercial real estate3,199,178  3,029,920  2,949,523  2,798,269  6% 8% 14%
Commercial and industrial1,024,828  922,124  907,340  909,688  11% 13% 13%
Agriculture697,893  641,146  646,822  661,218  9% 8% 6%
1st lien1,154,221  1,102,920  1,108,227  1,072,917  5% 4% 8%
Junior lien53,055  54,964  56,689  64,821  (3)% (6)% (18)%
Total 1-4 family1,207,276  1,157,884  1,164,916  1,137,738  4% 4% 6%
Multifamily residential278,539  268,156  247,457  218,061  4% 13% 28%
Home equity lines of credit592,355  557,895  539,938  500,036  6% 10% 18%
Other consumer167,964  163,568  165,865  164,288  3% 1% 2%
Total consumer760,319  721,463  705,803  664,324  5% 8% 14%
States and political subdivisions454,085  398,848  404,671  419,025  14% 12% 8%
Other114,534  119,966  125,310  149,915  (5)% (9)% (24)%
Total loans receivable, including  loans held for sale8,896,488  8,355,459  8,320,705  8,002,460  6% 7% 11%
Less loans held for sale 1(54,711) (29,389) (33,156) (53,788) 86% 65% 2%
Total loans receivable$8,841,777  $8,326,070  $8,287,549  $7,948,672  6% 7% 11%

______________________________

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,
2019
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
 Jun 30,
2019
 Jun 30,
2019
 Jun 30,
2019
Custom and owner occupied construction$283      48    283   
Pre-sold and spec construction1,261  456  463  492  1,261     
Total residential construction1,544  456  463  540  1,261  283   
Land development1,272  2,272  2,166  7,564  672    600 
Consumer land or lots1,075  1,126  1,428  1,593  615    460 
Unimproved land8,864  9,222  9,338  9,962  7,332    1,532 
Developed lots for operative builders  67  68  126       
Commercial lots575  663  1,046  1,059      575 
Other construction241  111  120  155    131  110 
Total land, lot and other construction12,027  13,461  14,166  20,459  8,619  131  3,277 
Owner occupied6,998  7,229  5,940  12,891  5,207  219  1,572 
Non-owner occupied7,198  7,368  10,567  15,337  7,198     
Total commercial real estate14,196  14,597  16,507  28,228  12,405  219  1,572 
Commercial and industrial5,690  3,893  3,914  7,692  5,358  118  214 
Agriculture4,228  4,488  7,040  10,497  3,192  886  150 
1st lien10,211  10,279  10,290  9,725  7,077  1,383  1,751 
Junior lien592  582  565  3,257  520    72 
Total 1-4 family10,803  10,861  10,855  12,982  7,597  1,383  1,823 
Multifamily residential      634       
Home equity lines of credit2,474  2,288  2,770  3,112  2,104  182  188 
Other consumer597  453  456  393  352  188  57 
Total consumer3,071  2,741  3,226  3,505  2,456  370  245 
Other380  348  579    307  73   
Total$51,939  50,845  56,750  84,537  41,195  3,463  7,281 

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,
2019
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
Custom and owner occupied construction$49  $282  $1,661  $1,525  (83)% (97)% (97)%
Pre-sold and spec construction219  553  887  721  (60)% (75)% (70)%
Total residential construction268  835  2,548  2,246  (68)% (89)% (88)%
Land development1,990    228  728  n/m 773% 173%
Consumer land or lots206  510  200  471  (60)% 3% (56)%
Unimproved land658  685  579  1,450  (4)% 14% (55)%
Developed lots for operative builders  4  122    (100)% (100)% n/m
Commercial lots  331  203    (100)% (100)% n/m
Other construction  1,234  4,170    (100)% (100)% n/m
Total land, lot and other construction2,854  2,764  5,502  2,649  3% (48)% 8%
Owner occupied5,322  4,463  2,981  3,571  19% 79% 49%
Non-owner occupied11,700  6,604  1,245  8,414  77% 840% 39%
Total commercial real estate17,022  11,067  4,226  11,985  54% 303% 42%
Commercial and industrial3,006  4,070  3,374  5,745  (26)% (11)% (48)%
Agriculture3,125  5,709  6,455  5,288  (45)% (52)% (41)%
1st lien2,776  7,179  5,384  5,132  (61)% (48)% (46)%
Junior lien1,302  583  118  989  123% 1,003% 32%
Total 1-4 family4,078  7,762  5,502  6,121  (47)% (26)% (33)%
Multifamily Residential1,598        n/m n/m n/m
Home equity lines of credit3,931  2,925  3,562  3,940  34% 10% %
Other consumer1,683  1,357  1,650  1,665  24% 2% 1%
Total consumer5,614  4,282  5,212  5,605  31% 8% %
States and political subdivisions    229    n/m (100)% n/m
Other372  405  519  11  (8)% (28)% 3,282%
Total$37,937  $36,894  $33,567  $39,650  3% 13% (4)%

______________________________

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,
2019
 Mar 31,
2019
 Dec 31,
2018
 Jun 30,
2018
 Jun 30,
2019
 Jun 30,
2019
Pre-sold and spec construction$(6) (4) (352) (344)   6 
Land development15  23  (116) (107) 42  27 
Consumer land or lots(2) (20) (146) (92) 37  39 
Unimproved land(54) (9) (445) (144)   54 
Developed lots for operative builders(18)   33  33    18 
Commercial lots(3) (2) 1  4    3 
Other construction(32)   (19)   9  41 
Total land, lot and other construction(94) (8) (692) (306) 88  182 
Owner occupied139  75  1,320  1,000  226  87 
Non-owner occupied7  30  853  (4) 130  123 
Total commercial real estate146  105  2,173  996  356  210 
Commercial and industrial37  (4) 2,449  1,471  555  518 
Agriculture(32) 14  16  44  67  99 
1st lien56  198  577  (193) 298  242 
Junior lien(222) (52) (371) (34) 29  251 
Total 1-4 family(166) 146  206  (227) 327  493 
Multifamily residential    (649) (6)    
Home equity lines of credit(11) (5) (97) (38) 13  24 
Other consumer313  223  261  111  470  157 
Total consumer302  218  164  73  483  181 
Other2,055  1,043  4,967  1,816  4,324  2,269 
Total$2,242  1,510  8,282  3,517  6,200  3,958 

Visit our website at www.glacierbancorp.com 

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