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Glacier Bancorp, Inc. Announces Results for the Quarter Ended December 31, 2018
Globe Newswire 24-Jan-2019 4:31 PM
4th Quarter 2018 Highlights:
Net income of $49.6 million for the current quarter, an increase of $14.9 million, or 43 percent, over the prior year fourth quarter net income of $34.7 million, excluding the impact of the revaluation of the net deferred tax asset in prior year. In prior year fourth quarter, the Company recognized a one-time tax expense of $19.7 million from the revaluation of the net deferred tax asset as a result of the Tax Cuts and Jobs Act ("Tax Act"). The Company believes that the financial results are more comparable excluding the impact of the revaluation of the net deferred tax asset, so we have included a Non-GAAP Financial Measures section within the earnings release that shows certain key business measures without the impact of the one-time tax adjustments.
Pre-tax income of $61.2 million for the current quarter, an increase of $14.9 million, or 32 percent, over the prior year fourth quarter pre-tax income of $46.3 million.
Current quarter diluted earnings per share of $0.59, an increase of 2 percent from the prior quarter, and an increase of 34 percent from the prior year fourth quarter diluted earnings per share of $0.44, excluding the revaluation of the net deferred tax asset.
Current quarter loan growth of $164 million, or 8 percent annualized.
Net interest margin of 4.30 percent as a percentage of earning assets, on a tax equivalent basis, a 4 basis points increase over the prior quarter, and a 7 basis points increase over the prior year fourth quarter net interest margin of 4.23 percent.
Declared a special dividend of $0.30 per share. This was the 15th special dividend the Company has declared.
Declared and paid a regular quarterly dividend of $0.26 per share. The dividend was the 135th consecutive quarterly dividend declared by the Company.
On January 16, 2019, the Company announced the signing of a definitive agreement to acquire FNB Bancorp, the bank holding company for The First National Bank of Layton, a community bank based in Layton, Utah, with total assets of $326 million.
Year 2018 Highlights:
Net income of $182 million for 2018, an increase of $45.8 million, or 34 percent, over the prior year net income of $136 million excluding the revaluation of the net deferred tax asset.
Pre-tax income of $222 million for the current year, an increase of $41.2 million, or 23 percent, over the prior year.
Diluted earnings per share of $2.17, an increase of 24 percent from the prior year diluted earnings per share of $1.75, excluding the revaluation of the net deferred tax asset.
Total loan growth of $1.710 billion, or 26 percent, for the current year. Organic loan growth of $728 million, or 11 percent, for the current year.
Total core deposit growth of $1.905 billion, or 26 percent, for the current year. Organic core deposit growth of $195 million, or 3 percent, for the current year.
Net interest margin of 4.21 percent as a percentage of earning assets, on a tax equivalent basis, a 9 basis points increase over the 4.12 percent net interest margin in the prior year.
Dividends declared of $1.31 per share, an increase of $0.17 per share, or 15 percent, over the prior year.
The Company completed the acquisition and core system conversion of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado, with total assets of $551 million.
The Company completed the acquisition and core system conversion of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank in Bozeman, Montana, with total assets of $1.110 billion.
Non-GAAP Financial Measures - Tax Cuts and Jobs Act In addition to the results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), this press release contains certain non-GAAP financial measures. The Company believes that providing these non-GAAP financial measures provides investors with information useful in understanding the Company's financial performance, performance trends, and financial position. While the Company uses these non-GAAP measures in its analysis of the Company's performance, this information should not be considered an alternative to measurements required by GAAP.
The following table provides a reconciliation of certain GAAP financial measures to non-GAAP financial measures. The reconciling item between the GAAP and non-GAAP financial measures was the prior year fourth quarter one-time net tax expense of $19.7 million. The one-time net tax expense was driven by the Tax Act and the change in the federal marginal rate of 35 percent to 21 percent effective January 1, 2018, which resulted in this revaluation of its deferred tax assets and deferred tax liabilities ("net deferred tax asset") as of December 31, 2017. The Company believes that the financial results are more comparable excluding the impact of the revaluation of the net deferred tax asset.
Three Months ended
Year ended
(Dollars in thousands, except per share data)
Dec 31, 2018
Sep 30, 2018
Jun 30, 2018
Mar 31, 2018
Dec 31, 2017
Dec 31, 2018
Dec 31, 2017
Net income (GAAP)
$
49,599
49,336
44,384
38,559
14,956
181,878
116,377
Tax Act adjustment (GAAP)
—
—
—
—
19,699
—
19,699
Net income (non-GAAP)
$
49,599
49,336
44,384
38,559
34,655
181,878
136,076
Basic earnings per share (GAAP)
$
0.59
0.58
0.53
0.48
0.19
2.18
1.50
Tax Act adjustment (GAAP)
—
—
—
—
0.25
—
0.25
Basic earnings per share (non-GAAP)
$
0.59
0.58
0.53
0.48
0.44
2.18
1.75
Diluted earnings per share (GAAP)
$
0.59
0.58
0.52
0.48
0.19
2.17
1.50
Tax Act adjustment (GAAP)
—
—
—
—
0.25
—
0.25
Diluted earnings per share (non-GAAP)
$
0.59
0.58
0.52
0.48
0.44
2.17
1.75
Return on average assets (annualized) (GAAP)
1.66
%
1.66
%
1.53
%
1.50
%
0.61
%
1.59
%
1.20
%
Tax Act adjustment (GAAP)
—
%
—
%
—
%
—
%
0.81
%
—
%
0.21
%
Return on average assets (annualized) (non-GAAP)
1.66
%
1.66
%
1.53
%
1.50
%
1.42
%
1.59
%
1.41
%
Return on average equity (annualized) (GAAP)
13.08
%
13.10
%
12.07
%
11.90
%
4.91
%
12.56
%
9.80
%
Tax Act adjustment (GAAP)
—
%
—
%
—
%
—
%
6.47
%
—
%
1.66
%
Return on average equity (annualized) (non-GAAP)
13.08
%
13.10
%
12.07
%
11.90
%
11.38
%
12.56
%
11.46
%
Dividend payout ratio (annualized) (GAAP)
94.92
%
44.83
%
49.06
%
47.92
%
110.53
%
60.09
%
76.00
%
Tax Act adjustment (GAAP)
—
%
—
%
—
%
—
%
(62.80
)%
—
%
(10.86
)%
Dividend payout ratio (annualized) (non-GAAP)
94.92
%
44.83
%
49.06
%
47.92
%
47.73
%
60.09
%
65.14
%
Effective tax rate (GAAP)
19.02
%
17.96
%
17.61
%
17.88
%
67.69
%
18.15
%
35.70
%
Tax Act adjustment (GAAP)
—
%
—
%
—
%
—
%
(42.57
)%
—
%
(10.88
)%
Effective tax rate (non-GAAP)
19.02
%
17.96
%
17.61
%
17.88
%
25.12
%
18.15
%
24.82
%
Financial Highlights
At or for the Three Months ended
At or for the Year ended
(Dollars in thousands, except per share and market data)
Dec 31, 2018
Sep 30, 2018
Jun 30, 2018
Mar 31, 2018
Dec 31, 2017
Dec 31, 2018
Dec 31, 2017
Operating results
Net income 1
$
49,599
49,336
44,384
38,559
34,655
181,878
136,076
Basic earnings per share 1
$
0.59
0.58
0.53
0.48
0.44
2.18
1.75
Diluted earnings per share 1
$
0.59
0.58
0.52
0.48
0.44
2.17
1.75
Dividends declared per share 2
$
0.56
0.26
0.26
0.23
0.21
1.31
1.14
Market value per share
Closing
$
39.62
43.09
38.68
38.38
39.39
39.62
39.39
High
$
47.67
46.28
41.47
41.24
40.31
47.67
40.31
Low
$
36.84
38.37
35.77
36.72
36.01
35.77
31.50
Selected ratios and other data
Number of common stock shares outstanding
84,521,692
84,521,093
84,516,650
84,511,472
78,006,956
84,521,692
78,006,956
Average outstanding shares - basic
84,521,640
84,518,407
84,514,257
80,808,904
78,006,956
83,603,515
77,537,664
Average outstanding shares - diluted
84,610,018
84,593,122
84,559,268
80,887,135
78,094,494
83,677,185
77,607,605
Return on average assets (annualized) 1
1.66
%
1.66
%
1.53
%
1.50
%
1.42
%
1.59
%
1.41
%
Return on average equity (annualized) 1
13.08
%
13.10
%
12.07
%
11.90
%
11.38
%
12.56
%
11.46
%
Efficiency ratio
53.93
%
52.26
%
55.44
%
57.80
%
54.02
%
54.73
%
53.94
%
Dividend payout ratio 1,2
94.92
%
44.83
%
49.06
%
47.92
%
47.73
%
60.09
%
65.14
%
Loan to deposit ratio
87.64
%
85.13
%
84.92
%
81.83
%
87.29
%
87.64
%
87.29
%
Number of full time equivalent employees
2,623
2,572
2,605
2,545
2,278
2,623
2,278
Number of locations
167
164
167
166
145
167
145
Number of ATMs
216
215
221
223
200
216
200
1 Excludes a one time revaluation of the deferred tax assets and deferred tax liabilities as a result of the Tax Act for the three months and year ended December 31, 2017. For additional information on the revaluation, see the "Non-GAAP Financial Measures - Tax Cuts and Jobs Act" section above.
2 Includes a special dividend declared of $0.30 per share for the three months ended December 31, 2018 and for the years ended December 31, 2018 and 2017.
KALISPELL, Mont., Jan. 24, 2019 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $49.6 million for the current quarter, an increase of $14.9 million, or 43 percent, from the $34.7 million of net income for the prior year fourth quarter, excluding the revaluation of the net deferred tax asset. Diluted earnings per share for the current quarter was $0.59 per share, an increase of 34 percent from the prior year fourth quarter diluted earnings per share of $0.44, excluding the revaluation of the net deferred tax asset. Included in the current quarter was $520 thousand of acquisition-related expenses and $357 thousand of loss on sale of investments. "The Glacier team delivered very strong results in the fourth quarter and for the full year in 2018. We are pleased to see all aspects of the business performing so well. We thank our employees for their many contributions to the company during the year and our customers for their continued business," said Randy Chesler, President and Chief Executive Officer. "We are also pleased to see our on-going acquisition strategy combined with organic growth continues to provide enhanced results."
Net income of $182 million for 2018, an increase of $45.8 million, or 34 percent, over the prior year net income of $136 million, excluding the revaluation of the net deferred tax asset. Diluted earnings per share of $2.17, an increase of 24 percent from the prior year diluted earnings per share of $1.75, excluding the revaluation of the net deferred tax asset.
On January 16, 2019, the Company announced the signing of a definitive agreement to acquire FNB Bancorp, the holding company for The First National Bank of Layton, a community bank based in Layton, Utah (collectively, "FNB"). FNB provides banking services to individuals and businesses throughout Utah with banking offices located in Layton, Bountiful, Clearfield, and Draper. As of September 30, 2018, FNB had total assets of $326 million, total loans of $243 million and total deposits of $278 million. The acquisition marks the Company's 21st acquisition since 2000 and its tenth transaction in the past six years. The acquisition is subject to required regulatory approvals and other customary conditions of closing and is expected to be completed during the second quarter of 2019.
On February 28, 2018, the Company completed the acquisition of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank in Bozeman, Montana (collectively, "FSB"). On January 31, 2018, the Company completed the acquisition of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado (collectively, "Collegiate"). The Company's results of operations and financial condition include the acquisitions beginning on the acquisition dates and the following table discloses the fair value estimates of selected classifications of assets and liabilities acquired:
FSB
Collegiate
(Dollars in thousands)
February 28, 2018
January 31, 2018
Total
Total assets
$
1,109,684
551,198
1,660,882
Debt securities
271,865
42,177
314,042
Loans receivable
627,767
354,252
982,019
Non-interest bearing deposits
301,468
170,022
471,490
Interest bearing deposits
576,118
267,149
843,267
Borrowings
36,880
12,509
49,389
Asset Summary
$ Change from
(Dollars in thousands)
Dec 31, 2018
Sep 30, 2018
Dec 31, 2017
Sep 30, 2018
Dec 31, 2017
Cash and cash equivalents
$
203,790
307,104
200,004
(103,314)
3,786
Debt securities, available-for-sale
2,571,663
2,103,619
1,778,243
468,044
793,420
Debt securities, held-to-maturity
297,915
590,915
648,313
(293,000)
(350,398)
Total debt securities
2,869,578
2,694,534
2,426,556
175,044
443,022
Loans receivable
Residential real estate
887,742
862,830
720,728
24,912
167,014
Commercial real estate
4,657,561
4,527,577
3,577,139
129,984
1,080,422
Other commercial
1,911,171
1,921,955
1,579,353
(10,784)
331,818
Home equity
544,688
528,404
457,918
16,284
86,770
Other consumer
286,387
282,479
242,686
3,908
43,701
Loans receivable
8,287,549
8,123,245
6,577,824
164,304
1,709,725
Allowance for loan and lease losses
(131,239)
(132,535)
(129,568)
1,296
(1,671)
Loans receivable, net
8,156,310
7,990,710
6,448,256
165,600
1,708,054
Other assets
885,806
916,754
631,533
(30,948)
254,273
Total assets
$
12,115,484
11,909,102
9,706,349
206,382
2,409,135
Total debt securities of $2.870 billion at December 31, 2018 increased $175 million, or 7 percent, during the current quarter and increased $443 million, or 18 percent, from the prior year fourth quarter. Debt securities represented 24 percent of total assets at December 31, 2018 compared to 25 percent of total assets at December 31, 2017.
The loan portfolio of $8.288 billion increased $164 million, or 8 percent annualized, during the current quarter. The loan category with the largest increase was commercial real estate loans which increased $130 million, or 3 percent. Excluding the $982 million of loans from the FSB and Collegiate acquisitions, the loan portfolio increased $728 million, or 11 percent, since December 31, 2017, with the largest increase in commercial real estate loans, which increased $463 million, or 13 percent.
Credit Quality Summary
At or for the Year ended
At or for the Nine Months ended
At or for the Year ended
(Dollars in thousands)
Dec 31, 2018
Sep 30, 2018
Dec 31, 2017
Allowance for loan and lease losses
Balance at beginning of period
$
129,568
129,568
129,572
Provision for loan losses
9,953
8,707
10,824
Charge-offs
(17,807
)
(11,905
)
(19,331
)
Recoveries
9,525
6,165
8,503
Balance at end of period
$
131,239
132,535
129,568
Other real estate owned
$
7,480
12,399
14,269
Accruing loans 90 days or more past due
2,018
4,333
6,077
Non-accrual loans
47,252
55,373
44,833
Total non-performing assets
$
56,750
72,105
65,179
Non-performing assets as a percentage of subsidiary assets
0.47
%
0.61
%
0.68
%
Allowance for loan and lease losses as a percentage of non-performing loans
266
%
222
%
255
%
Allowance for loan and lease losses as a percentage of total loans
1.58
%
1.63
%
1.97
%
Net charge-offs as a percentage of total loans
0.10
%
0.07
%
0.17
%
Accruing loans 30-89 days past due
$
33,567
25,181
37,687
Accruing troubled debt restructurings
$
25,833
35,080
38,491
Non-accrual troubled debt restructurings
$
10,660
12,911
23,709
U.S. government guarantees included in non-performing assets
$
4,811
5,791
2,513
The Company benefited this quarter from the Bank divisions continued focus on reducing non-performing assets and resolving specific troubled credits. Non-performing assets at December 31, 2018 were $56.8 million, a decrease of $15.4 million, or 21 percent, from the prior quarter and a decrease of $8.4 million, or 13 percent, from the prior year fourth quarter. Non-performing assets as a percentage of subsidiary assets at December 31, 2018 was 0.47 percent, a decrease of 14 basis points from the prior quarter, and a decrease of 21 basis points from the prior year fourth quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $33.6 million at December 31, 2018 decreased $4.1 million from prior year end. Early stage delinquencies as a percentage of loans at December 31, 2018 was 0.41 percent which was a decrease of 16 basis points from prior year end. The allowance for loan and lease losses ("allowance") as a percent of total loans outstanding at December 31, 2018 was 1.58 percent, which was a 5 basis points decrease compared to the prior quarter and a decrease of 39 basis points from a year ago. The decrease from the prior year end was driven by stabilizing credit quality and the addition of loans from new acquisitions, as they are added to the loan portfolio on a fair value basis with no allowance.
Credit Quality Trends and Provision for Loan Losses
(Dollars in thousands)
Provision for Loan Losses
Net Charge-Offs
ALLL as a Percent of Loans
Accruing Loans 30-89 Days Past Due as a Percent of Loans
Non-Performing Assets to Total Subsidiary Assets
Fourth quarter 2018
$
1,246
$
2,542
1.58
%
0.41
%
0.47
%
Third quarter 2018
3,194
2,223
1.63
%
0.31
%
0.61
%
Second quarter 2018
4,718
762
1.66
%
0.50
%
0.71
%
First quarter 2018
795
2,755
1.66
%
0.59
%
0.64
%
Fourth quarter 2017
2,886
2,894
1.97
%
0.57
%
0.68
%
Third quarter 2017
3,327
3,628
1.99
%
0.45
%
0.67
%
Second quarter 2017
3,013
2,362
2.05
%
0.49
%
0.70
%
First quarter 2017
1,598
1,944
2.20
%
0.67
%
0.75
%
Net charge-offs for the current quarter were $2.5 million compared to $2.2 million for the prior quarter and $2.9 million from the same quarter last year. Current quarter provision for loan losses was $1.2 million, compared to $3.2 million in the prior quarter and $2.9 million in the prior year fourth 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)
Dec 31, 2018
Sep 30, 2018
Dec 31, 2017
Sep 30, 2018
Dec 31, 2017
Deposits
Non-interest bearing deposits
$
3,001,178
3,103,112
2,311,902
(101,934
)
689,276
NOW and DDA accounts
2,391,307
2,346,050
1,695,246
45,257
696,061
Savings accounts
1,346,790
1,345,163
1,082,604
1,627
264,186
Money market deposit accounts
1,684,284
1,722,975
1,512,693
(38,691
)
171,591
Certificate accounts
901,484
932,461
817,259
(30,977
)
84,225
Core deposits, total
9,325,043
9,449,761
7,419,704
(124,718
)
1,905,339
Wholesale deposits
168,724
151,421
160,043
17,303
8,681
Deposits, total
9,493,767
9,601,182
7,579,747
(107,415
)
1,914,020
Repurchase agreements
396,151
408,754
362,573
(12,603
)
33,578
Federal Home Loan Bank advances
440,175
155,328
353,995
284,847
86,180
Other borrowed funds
14,708
9,944
8,224
4,764
6,484
Subordinated debentures
134,051
134,055
126,135
(4
)
7,916
Other liabilities
120,778
107,227
76,618
13,551
44,160
Total liabilities
$
10,599,630
10,416,490
8,507,292
183,140
2,092,338
Core deposits of $9.325 billion as of December 31, 2018 decreased $125 million, or 1 percent, from the prior quarter. The Company added back $395 million deposits during the first quarter of 2018 that were previously moved off the balance sheet as part of its strategy to say below $10 billion in total assets through December 31, 2017. Excluding the $1.315 billion of core deposits from the acquisitions and deposits moved back onto the balance sheet, core deposits increased $195 million, or 3 percent, from the prior year end.
Federal Home Loan Bank ("FHLB") advances of $440 million at December 31, 2018, increased $285 million over the prior quarter and increased $86 million over the prior year fourth quarter to assist in funding asset growth.
Stockholders' Equity Summary
$ Change from
(Dollars in thousands, except per share data)
Dec 31, 2018
Sep 30, 2018
Dec 31, 2017
Sep 30, 2018
Dec 31, 2017
Common equity
$
1,525,281
1,522,329
1,201,036
2,952
324,245
Accumulated other comprehensive (loss) income
(9,427
)
(29,717
)
(1,979
)
20,290
(7,448
)
Total stockholders' equity
1,515,854
1,492,612
1,199,057
23,242
316,797
Goodwill and core deposit intangible, net
(338,828
)
(340,508
)
(191,995
)
1,680
(146,833
)
Tangible stockholders' equity
$
1,177,026
1,152,104
1,007,062
24,922
169,964
Stockholders' equity to total assets
12.51
%
12.53
%
12.35
%
Tangible stockholders' equity to total tangible assets
9.99
%
9.96
%
10.58
%
Book value per common share
$
17.93
17.66
15.37
0.27
2.56
Tangible book value per common share
$
13.93
13.63
12.91
0.30
1.02
Tangible stockholders' equity of $1.177 billion at December 31, 2018 increased $25 million compared to the prior quarter which was primarily the result of an increase in other comprehensive income. Tangible stockholders' equity increased $170 million over the prior year fourth quarter which was the result of earnings retention and $181 million and $69.8 million of Company stock issued for the acquisitions of FSB and Collegiate, respectively. These increases more than offset the increase in goodwill and core deposit intangibles associated with the acquisitions and the decrease in accumulated other comprehensive income. Tangible book value per common share at quarter end increased $0.30 per share from the prior quarter and increased $1.02 per share from a year ago.
Cash Dividends On December 27, 2018, the Company's Board of Directors declared a special cash dividend of $0.30 per share, the 15th special dividend the Company has declared. The dividend was payable January 17, 2019 to shareholders of record on January 8, 2019. On November 13, 2018, the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend was payable December 20, 2018 to shareholders of record on December 11, 2018. The dividend was the 135th consecutive quarterly dividend. Regular quarterly dividends declared for 2018 were $1.01 per share, an increase of $0.17 per share, or 20 percent, compared to prior year quarterly dividends of $0.84 per share. 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 December 31, 2018 Compared to September 30, 2018, June 30, 2018 and March 31, 2018
Income Summary
Three Months ended
(Dollars in thousands)
Dec 31, 2018
Sep 30, 2018
Jun 30, 2018
Mar 31, 2018
Dec 31, 2017
Net interest income
Interest income
$
125,310
122,905
117,715
103,066
96,898
Interest expense
9,436
9,160
9,161
7,774
7,072
Total net interest income
115,874
113,745
108,554
95,292
89,826
Non-interest income
Service charges and other fees
19,708
19,504
18,804
16,871
17,282
Miscellaneous loan fees and charges
1,278
1,807
2,243
1,477
1,077
Gain on sale of loans
5,639
7,256
8,142
6,097
7,408
Loss on sale of investments
(357
)
(367
)
(56
)
(333
)
(115
)
Other income
2,226
4,216
2,695
1,974
2,057
Total non-interest income
28,494
32,416
31,828
26,086
27,709
Total income
$
144,368
146,161
140,382
121,378
117,535
Net interest margin (tax-equivalent)
4.30
%
4.26
%
4.17
%
4.10
%
4.23
%
$ Change from
(Dollars in thousands)
Sep 30, 2018
Jun 30, 2018
Mar 31, 2018
Dec 31, 2017
Net interest income
Interest income
$
2,405
7,595
22,244
28,412
Interest expense
276
275
1,662
2,364
Total net interest income
2,129
7,320
20,582
26,048
Non-interest income
Service charges and other fees
204
904
2,837
2,426
Miscellaneous loan fees and charges
(529
)
(965
)
(199
)
201
Gain on sale of loans
(1,617
)
(2,503
)
(458
)
(1,769
)
Loss on sale of investments
10
(301
)
(24
)
(242
)
Other income
(1,990
)
(469
)
252
169
Total non-interest income
(3,922
)
(3,334
)
2,408
785
Total income
$
(1,793
)
3,986
22,990
26,833
Net Interest Income The current quarter interest income of $125 million increased $2.4 million, or 2 percent, from the prior quarter and increased $28.4 million, or 29 percent, over the prior year fourth quarter with both increases primarily attributable to the increase in interest income from commercial loans. Interest income on commercial loans increased $1.7 million, or 2 percent, from the prior quarter and increased $20.9 million, or 34 percent, from the prior year fourth quarter.
The current quarter interest expense of $9.4 million remained stable from the prior quarter and increased $2.4 million, or 33 percent, from the prior year fourth quarter. The total cost of funding (including non-interest bearing deposits) for the current quarter was 36 basis points compared to 36 basis points for the prior quarter and 33 basis points for the prior year fourth quarter.
The Company's net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.30 percent compared to 4.26 percent in the prior quarter. The 4 basis points increase in the net interest margin was primarily the result of increased yields on the loan portfolio. The current quarter net interest margin increased 7 basis points over the prior year fourth quarter net interest margin of 4.23 percent. Included in the current quarter margin was a 14 basis points decrease due to the reduction in the federal corporate income tax rate in 2018 by the Tax Cut and Jobs Act ("Tax Act"). The increase in the margin from the prior year fourth quarter resulted from the remix of earning assets to higher yielding loans, increased yields on the loan portfolio, and relatively stable funding costs. "During the quarter and throughout the year, the Bank divisions maintained good discipline in their deposit and loan pricing," said Ron Copher, Chief Financial Officer. "The net interest margin expansion during each quarter reflected the increased yields on earnings assets combined with stable funding costs each quarter."
Non-interest Income Non-interest income for the current quarter totaled $28.5 million, a decrease of $3.9 million, or 12 percent, from the prior quarter and an increase of $785 thousand, or 3 percent, over the same quarter last year. Service charges and other fees of $19.7 million for the current quarter increased $2.4 million, or 14 percent, from the prior year fourth quarter with such increases primarily due to the increased number of accounts from organic growth and acquisitions. Gain on sale of loans decreased $1.6 million, or 22 percent, from the prior quarter as a result of seasonal activity and decreased $1.8 million, or 24 percent from the prior year fourth quarter as result of the decrease in purchase and refinance activity. Other income decreased $2.0 million, or 47 percent, from the prior quarter and was primarily due to the prior quarter $2.3 million gain on sale of a former branch building.
Non-interest Expense Summary
Three Months ended
(Dollars in thousands)
Dec 31, 2018
Sep 30, 2018
Jun 30, 2018
Mar 31, 2018
Dec 31, 2017
Compensation and employee benefits
$
50,385
49,927
49,023
45,721
40,465
Occupancy and equipment
7,884
7,914
7,662
7,274
6,925
Advertising and promotions
2,434
2,432
2,530
2,170
2,024
Data processing
3,951
3,752
4,241
3,967
3,970
Other real estate owned
264
2,674
211
72
377
Regulatory assessments and insurance
1,263
1,277
1,329
1,206
1,069
Core deposit intangibles amortization
1,731
1,735
1,748
1,056
614
Other expenses
13,964
13,118
15,051
12,161
12,922
Total non-interest expense
$
81,876
82,829
81,795
73,627
68,366
$ Change from
(Dollars in thousands)
Sep 30, 2018
Jun 30, 2018
Mar 31, 2018
Dec 31, 2017
Compensation and employee benefits
$
458
1,362
4,664
9,920
Occupancy and equipment
(30
)
222
610
959
Advertising and promotions
2
(96
)
264
410
Data processing
199
(290
)
(16
)
(19
)
Other real estate owned
(2,410
)
53
192
(113
)
Regulatory assessments and insurance
(14
)
(66
)
57
194
Core deposit intangibles amortization
(4
)
(17
)
675
1,117
Other expense
846
(1,087
)
1,803
1,042
Total non-interest expense
$
(953
)
81
8,249
13,510
Total non-interest expense of $81.9 million for the current quarter decreased $1.0 million, or 1 percent, over the prior quarter and increased $13.5 million, or 20 percent, over the prior year fourth quarter. Compensation and employee benefits increased by $458 thousand, or 1 percent, from the prior quarter. Compensation and employee benefits increased by $9.9 million, or 25 percent, from the prior year fourth quarter principally due to the increased number of employees from acquisitions. Occupancy and equipment expense increased $959 thousand, or 14 percent, over the prior year fourth quarter and was attributable to increased costs from acquisitions. OREO expenses decreased $2.4 million from the prior quarter, due to a write down of $2.2 million on a single property during the third quarter of 2018. Acquisition-related expenses were $520 thousand during the current quarter compared to $1.3 million in the prior quarter and $936 thousand in the prior year fourth quarter.
Federal and State Income Tax Expense Tax expense during the fourth quarter of 2018 was $11.6 million, which is a decrease of $19.7 million, from the prior year fourth quarter and was primarily attributable to the revaluation of the net deferred tax asset in the prior year which was partially offset by the decrease in the federal income tax rate driven by the Tax Act. The effective tax rate in the fourth quarter of 2018 was 19 percent compared to 25 percent in the prior year fourth quarter, excluding the revaluation of the net deferred tax asset.
Efficiency Ratio The current quarter efficiency ratio was 53.93 percent, a 167 basis points increase from the prior quarter efficiency ratio of 52.26 percent. Excluding the prior quarter gain from the sale of the former branch building, the prior quarter efficiency ratio would have been 53.06 percent. The current quarter efficiency ratio was also higher than the prior quarter efficiency ratio due to the $1.6 million seasonal decrease in the gain on sale of loans during the current quarter.
Operating Results for Year ended December 31, 2018 Compared to December 31, 2017
Income Summary
Year ended
(Dollars in thousands)
Dec 31, 2018
Dec 31, 2017
$ Change
% Change
Net interest income
Interest income
$
468,996
$
375,022
$
93,974
25
%
Interest expense
35,531
29,864
5,667
19
%
Total net interest income
433,465
345,158
88,307
26
%
Non-interest income
Service charges and other fees
74,887
67,717
7,170
11
%
Miscellaneous loan fees and charges
6,805
4,360
2,445
56
%
Gain on sale of loans
27,134
30,439
(3,305
)
(11
)%
Loss on sale of investments
(1,113
)
(660
)
(453
)
69
%
Other income
11,111
10,383
728
7
%
Total non-interest income
118,824
112,239
6,585
6
%
Total income
$
552,289
$
457,397
$
94,892
21
%
Net interest margin (tax-equivalent)
4.21
%
4.12
%
Net Interest Income Interest income of $469 million for 2018 increased $94.0 million, or 25 percent, from 2017 and was principally due to a $76.8 million increase in interest income from commercial loans. Interest expense of $35.5 million for the current year increased $5.7 million over the prior year same period. The Company has maintained stable funding costs through its focus on growing non-interest bearing deposits and continued pricing discipline. The total funding cost for 2018 and 2017 was 36 basis points.
The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for 2018 was 4.21 percent, a 9 basis points increase from the net interest margin of 4.12 percent for 2017. Included in the current year margin was a 14 basis points decrease compared to the prior year driven by the reduction in the federal corporate income tax rate. The increase in the margin from the prior year resulted from the remix of earning assets to higher yielding loans, increased yields on the loan portfolio, and stable funding costs.
Non-interest Income Non-interest income of $119 million for the current year increased $6.6 million, or 6 percent, over the prior year. Service charges and other fees of $74.9 million for 2018 increased $7.2 million, or 11 percent, from the prior year as a result of an increased number of deposit accounts from organic growth and acquisitions. Miscellaneous loan fees and charges for 2018 increased $2.4 million, or 56 percent from the prior year as a result of the recent acquisitions and increased loan growth. Gain on sale of loans for the current year decreased $3.3 million, or 11 percent, from the prior year due to the decrease in purchase and refinance activity. Other income of $11.1 million, increased $728 thousand, or 7 percent, from the prior year with increases of $1.9 million from the sale of bank assets and a decrease of $2.1 million from the gain on sale of OREO.
Non-interest Expense Summary
Year ended
(Dollars in thousands)
Dec 31, 2018
Dec 31, 2017
$ Change
% Change
Compensation and employee benefits
$
195,056
$
160,506
$
34,550
22
%
Occupancy and equipment
30,734
26,631
4,103
15
%
Advertising and promotions
9,566
8,405
1,161
14
%
Data processing
15,911
14,150
1,761
12
%
Other real estate owned
3,221
1,909
1,312
69
%
Regulatory assessments and insurance
5,075
4,431
644
15
%
Core deposit intangibles amortization
6,270
2,494
3,776
151
%
Other expenses
54,294
47,045
7,249
15
%
Total non-interest expense
$
320,127
$
265,571
$
54,556
21
%
Total non-interest expense of $320 million for 2018 increased $54.6 million, or 21 percent, over the prior year. Compensation and employee benefits for 2018 increased $34.6 million, or 22 percent, from the same period last year primarily due to the increased number of employees from acquisitions. Occupancy and equipment expense for 2018 increased $4.1 million, or 15 percent from the prior year primarily as a result of increased costs from acquisitions. Data processing expense for the current year increased $1.8 million, or 12 percent, from the prior year as a result of increased costs from the acquisitions and organic growth. Current year other expenses of $54.3 million increased $7.2 million, or 15 percent, from the prior year due to an increase in acquisition-related expenses and increased costs from acquired banks and organic growth. Acquisition-related expenses were $6.6 million during 2018 compared to $2.1 million in 2017.
Provision for Loan Losses The provision for loan losses was $10.0 million for 2018, a decrease of $871 thousand from 2017 provision for loan loss of $10.8 million. Net charge-offs during the 2018 were $8.3 million compared to $10.8 million during 2017.
Federal and State Income Tax Expense Tax expense of $40.3 million in 2018 decreased $24.3 million, or 38 percent, over the prior year same period as a result of a the revaluation of the net deferred tax asset and the decrease in the federal corporate income tax rate by the Tax Act. The effective tax rate in 2018 was 18 percent compared to 25 percent in the prior year, excluding the revaluation of the net deferred tax asset.
Efficiency Ratio For 2018, the efficiency ratio was 54.73, a 79 basis points increase over the prior year efficiency ratio of 53.94. Applying the same 35 percent federal corporate income tax rate as in effect during the prior year, the efficiency ratio would be 53.77 percent for 2018, or 17 basis points lower than 2017.
Forward-Looking Statements This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about management's plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "should," "projects," "seeks," "estimates" or words of similar meaning. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations in the forward-looking statements, including those set forth in this news release:
the risks associated with lending and potential adverse changes of the credit quality of loans in the Company's portfolio;
changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company's net interest income and profitability;
changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties;
legislative or regulatory changes, including increased banking and consumer protection regulation that adversely affect the Company's business, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
ability to complete pending or prospective future acquisitions, limit certain sources of revenue, or increase cost of operations;
costs or difficulties related to the completion and integration of acquisitions;
the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
reduced demand for banking products and services;
the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain (and maintain) customers;
competition among financial institutions in the Company's markets may increase significantly;
the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company's common stock and the ability to raise additional capital or grow the Company through acquisitions;
the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
consolidation in the financial services industry in the Company's markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
material failure, potential interruption or breach in security of the Company's systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
natural disasters, including fires, floods, earthquakes, and other unexpected events;
the Company's success in managing risks involved in the foregoing; and
the effects of any reputational damage to the Company resulting from any of the foregoing.
The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.
Conference Call Information A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, January 25, 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 3053399. To participate on the webcast, log on to: https://edge.media-server.com/m6/p/ddsz3whh. 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 3053399 by February 8, 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 located in Montana; as well as Mountain West Bank, Coeur d'Alene, operating in Idaho, Utah and Washington; First Bank, Powell, operating in Wyoming and Utah; Citizens Community Bank, Pocatello, operating in Idaho; Bank of the San Juans, Durango; and Collegiate Peaks Bank, Buena Vista both operating in Colorado; First State Bank, Wheatland, operating in Wyoming; North Cascades Bank, Chelan, operating in Washington; and The Foothills Bank, Yuma, operating in Arizona.
Glacier Bancorp, Inc. Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)
December 31, 2018
September 30, 2018
December 31, 2017
Assets
Cash on hand and in banks
$
161,782
171,394
139,948
Federal funds sold
—
—
—
Interest bearing cash deposits
42,008
135,710
60,056
Cash and cash equivalents
203,790
307,104
200,004
Debt securities, available-for-sale
2,571,663
2,103,619
1,778,243
Debt securities, held-to-maturity
297,915
590,915
648,313
Total debt securities
2,869,578
2,694,534
2,426,556
Loans held for sale, at fair value
33,156
50,649
38,833
Loans receivable
8,287,549
8,123,245
6,577,824
Allowance for loan and lease losses
(131,239
)
(132,535
)
(129,568
)
Loans receivable, net
8,156,310
7,990,710
6,448,256
Premises and equipment, net
241,528
239,006
177,348
Other real estate owned
7,480
12,399
14,269
Accrued interest receivable
54,408
62,248
44,462
Deferred tax asset
23,564
37,264
38,344
Core deposit intangible, net
49,242
50,973
14,184
Goodwill
289,586
289,535
177,811
Non-marketable equity securities
27,871
16,502
29,884
Bank-owned life insurance
82,320
81,850
59,351
Other assets
76,651
76,328
37,047
Total assets
$
12,115,484
11,909,102
9,706,349
Liabilities
Non-interest bearing deposits
$
3,001,178
3,103,112
2,311,902
Interest bearing deposits
6,492,589
6,498,070
5,267,845
Securities sold under agreements to repurchase
396,151
408,754
362,573
FHLB advances
440,175
155,328
353,995
Other borrowed funds
14,708
9,944
8,224
Subordinated debentures
134,051
134,055
126,135
Accrued interest payable
4,252
4,065
3,450
Other liabilities
116,526
103,162
73,168
Total liabilities
10,599,630
10,416,490
8,507,292
Stockholders' Equity
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding
—
—
—
Common stock, $0.01 par value per share, 117,187,500 shares authorized
845
845
780
Paid-in capital
1,051,253
1,050,463
797,997
Retained earnings - substantially restricted
473,183
471,021
402,259
Accumulated other comprehensive loss
(9,427
)
(29,717
)
(1,979
)
Total stockholders' equity
1,515,854
1,492,612
1,199,057
Total liabilities and stockholders' equity
$
12,115,484
11,909,102
9,706,349
Glacier Bancorp, Inc. Unaudited Condensed Consolidated Statements of Operations
Three Months ended
Year ended
(Dollars in thousands, except per share data)
December 31, 2018
September 30, 2018
December 31, 2017
December 31, 2018
December 31, 2017
Interest Income
Debt securities
$
22,016
21,971
18,663
86,499
81,968
Residential real estate loans
10,751
10,356
8,520
40,041
33,114
Commercial loans
82,238
80,587
61,329
304,164
227,356
Consumer and other loans
10,305
9,991
8,386
38,292
32,584
Total interest income
125,310
122,905
96,898
468,996
375,022
Interest Expense
Deposits
4,989
4,837
3,288
18,359
16,793
Securities sold under agreements to repurchase
707
570
496
2,248
1,858
Federal Home Loan Bank advances
2,146
2,132
2,106
8,880
6,748
Other borrowed funds
(10)
63
24
95
79
Subordinated debentures
1,604
1,558
1,158
5,949
4,386
Total interest expense
9,436
9,160
7,072
35,531
29,864
Net Interest Income
115,874
113,745
89,826
433,465
345,158
Provision for loan losses
1,246
3,194
2,886
9,953
10,824
Net interest income after provision for loan losses
114,628
110,551
86,940
423,512
334,334
Non-Interest Income
Service charges and other fees
19,708
19,504
17,282
74,887
67,717
Miscellaneous loan fees and charges
1,278
1,807
1,077
6,805
4,360
Gain on sale of loans
5,639
7,256
7,408
27,134
30,439
Loss on sale of debt securities
(357
)
(367
)
(115
)
(1,113
)
(660
)
Other income
2,226
4,216
2,057
11,111
10,383
Total non-interest income
28,494
32,416
27,709
118,824
112,239
Non-Interest Expense
Compensation and employee benefits
50,385
49,927
40,465
195,056
160,506
Occupancy and equipment
7,884
7,914
6,925
30,734
26,631
Advertising and promotions
2,434
2,432
2,024
9,566
8,405
Data processing
3,951
3,752
3,970
15,911
14,150
Other real estate owned
264
2,674
377
3,221
1,909
Regulatory assessments and insurance
1,263
1,277
1,069
5,075
4,431
Core deposit intangibles amortization
1,731
1,735
614
6,270
2,494
Other expenses
13,964
13,118
12,922
54,294
47,045
Total non-interest expense
81,876
82,829
68,366
320,127
265,571
Income Before Income Taxes
61,246
60,138
46,283
222,209
181,002
Federal and state income tax expense
11,647
10,802
31,327
40,331
64,625
Net Income
$
49,599
49,336
14,956
181,878
116,377
Glacier Bancorp, Inc. Average Balance Sheets
Three Months ended
December 31, 2018
December 31, 2017
(Dollars in thousands)
Average Balance
Interest & Dividends
Average Yield/ Rate
Average Balance
Interest & Dividends
Average Yield/ Rate
Assets
Residential real estate loans
$
919,468
$
10,751
4.68
%
$
758,180
$
8,520
4.50
%
Commercial loans 1
6,452,215
83,319
5.12
%
5,089,922
63,140
4.92
%
Consumer and other loans
820,439
10,305
4.98
%
695,288
8,386
4.79
%
Total loans 2
8,192,122
104,375
5.05
%
6,543,390
80,046
4.85
%
Tax-exempt debt securities 3
1,082,702
12,421
4.59
%
1,089,640
15,485
5.68
%
Taxable debt securities 4
1,783,881
12,444
2.79
%
1,483,157
8,774
2.37
%
Total earning assets
11,058,705
129,240
4.64
%
9,116,187
104,305
4.54
%
Goodwill and intangibles
339,617
192,663
Non-earning assets
471,696
402,802
Total assets
$
11,870,018
$
9,711,652
Liabilities
Non-interest bearing deposits
$
3,050,140
$
—
—
%
$
2,334,103
$
—
—
%
NOW and DDA accounts
2,334,785
1,038
0.18
%
1,704,799
408
0.10
%
Savings accounts
1,348,907
220
0.06
%
1,087,212
164
0.06
%
Money market deposit accounts
1,716,296
920
0.21
%
1,552,045
610
0.16
%
Certificate accounts
916,786
1,858
0.80
%
831,107
1,203
0.57
%
Total core deposits
9,366,914
4,036
0.17
%
7,509,266
2,385
0.13
%
Wholesale deposits 5
155,203
953
2.44
%
161,320
903
2.22
%
FHLB advances
200,654
2,146
4.18
%
226,334
2,106
3.64
%
Repurchase agreements and other borrowed funds
539,548
2,301
1.69
%
512,780
1,678
1.30
%
Total funding liabilities
10,262,319
9,436
0.36
%
8,409,700
7,072
0.33
%
Other liabilities
103,441
93,335
Total liabilities
10,365,760
8,503,035
Stockholders' Equity
Common stock
845
780
Paid-in capital
1,050,872
797,607
Retained earnings
479,347
410,836
Accumulated other comprehensive loss
(26,806
)
(606
)
Total stockholders' equity
1,504,258
1,208,617
Total liabilities and stockholders' equity
$
11,870,018
$
9,711,652
Net interest income (tax-equivalent)
$
119,804
$
97,233
Net interest spread (tax-equivalent)
4.28
%
4.21
%
Net interest margin (tax-equivalent)
4.30
%
4.23
%
______________________________
1 Includes tax effect of $1.1 million and $1.8 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2018 and 2017, respectively. 2 Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period. 3 Includes tax effect of $2.5 million and $5.3 million on tax-exempt debt securities income for the three months ended December 31, 2018 and 2017, respectively. 4 Includes tax effect of $304 thousand on federal income tax credits for the three months ended December 31, 2018 and 2017. 5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.
Glacier Bancorp, Inc. Average Balance Sheets (continued)
Year ended
December 31, 2018
December 31, 2017
(Dollars in thousands)
Average Balance
Interest & Dividends
Average Yield/ Rate
Average Balance
Interest & Dividends
Average Yield/ Rate
Assets
Residential real estate loans
$
868,467
$
40,041
4.61
%
$
744,523
$
33,114
4.45
%
Commercial loans 1
6,134,018
308,263
5.03
%
4,792,720
233,744
4.88
%
Consumer and other loans
774,813
38,292
4.94
%
684,129
32,584
4.76
%
Total loans 2
7,777,298
386,596
4.97
%
6,221,372
299,442
4.81
%
Tax-exempt debt securities 3
1,083,999
50,239
4.63
%
1,160,182
66,077
5.70
%
Taxable debt securities 4
1,802,704
47,771
2.65
%
1,722,264
39,727
2.31
%
Total earning assets
10,664,001
484,606
4.54
%
9,103,818
405,246
4.45
%
Goodwill and intangibles
311,321
180,014
Non-earning assets
453,394
394,363
Total assets
$
11,428,716
$
9,678,195
Liabilities
Non-interest bearing deposits
$
2,829,916
$
—
—
%
$
2,175,750
$
—
—
%
NOW and DDA accounts
2,242,935
3,862
0.17
%
1,656,865
1,402
0.08
%
Savings accounts
1,298,985
862
0.07
%
1,055,688
624
0.06
%
Money market deposit accounts
1,704,269
3,377
0.20
%
1,547,659
2,407
0.16
%
Certificate accounts
919,356
6,497
0.71
%
888,887
5,114
0.58
%
Total core deposits
8,995,461
14,598
0.16
%
7,324,849
9,547
0.13
%
Wholesale deposits 5
156,022
3,761
2.41
%
275,804
7,246
2.63
%
FHLB advances
231,158
8,880
3.79
%
258,528
6,748
2.57
%
Repurchase agreements and other borrowed funds
526,623
8,292
1.57
%
547,307
6,323
1.16
%
Total funding liabilities
9,909,264
35,531
0.36
%
8,406,488
29,864
0.36
%
Other liabilities
71,901
83,991
Total liabilities
9,981,165
8,490,479
Stockholders' Equity
Common stock
836
775
Paid-in capital
1,014,559
781,267
Retained earnings
452,996
406,200
Accumulated other comprehensive loss
(20,840
)
(526
)
Total stockholders' equity
1,447,551
1,187,716
Total liabilities and stockholders' equity
$
11,428,716
$
9,678,195
Net interest income (tax-equivalent)
$
449,075
$
375,382
Net interest spread (tax-equivalent)
4.18
%
4.09
%
Net interest margin (tax-equivalent)
4.21
%
4.12
%
______________________________
1 Includes tax effect of $4.1 million and $6.4 million on tax-exempt municipal loan and lease income for the year ended December 31, 2018 and 2017, respectively. 2 Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period. 3 Includes tax effect of $10.3 million and $22.5 million on tax-exempt investment securities income for the year ended December 31, 2018 and 2017, respectively. 4 Includes tax effect of $1,217 thousand and $1,294 thousand on federal income tax credits for the year ended December 31, 2018 and 2017, respectively. 5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.
Glacier Bancorp, Inc. Loan Portfolio by Regulatory Classification
Loans Receivable, by Loan Type
% Change from
(Dollars in thousands)
Dec 31, 2018
Sep 30, 2018
Dec 31, 2017
Sep 30, 2018
Dec 31, 2017
Custom and owner occupied construction
$
126,595
$
123,369
$
109,555
3
%
16
%
Pre-sold and spec construction
121,938
109,214
72,160
12
%
69
%
Total residential construction
248,533
232,583
181,715
7
%
37
%
Land development
137,814
125,272
82,398
10
%
67
%
Consumer land or lots
127,775
123,979
102,289
3
%
25
%
Unimproved land
83,579
75,183
65,753
11
%
27
%
Developed lots for operative builders
17,061
14,922
14,592
14
%
17
%
Commercial lots
34,096
30,255
23,770
13
%
43
%
Other construction
520,005
487,428
391,835
7
%
33
%
Total land, lot, and other construction
920,330
857,039
680,637
7
%
35
%
Owner occupied
1,343,563
1,330,024
1,132,833
1
%
19
%
Non-owner occupied
1,605,960
1,564,182
1,186,066
3
%
35
%
Total commercial real estate
2,949,523
2,894,206
2,318,899
2
%
27
%
Commercial and industrial
907,340
884,414
751,221
3
%
21
%
Agriculture
646,822
672,916
450,616
(4
)%
44
%
1st lien
1,108,227
1,109,308
877,335
—
%
26
%
Junior lien
56,689
59,345
51,155
(4
)%
11
%
Total 1-4 family
1,164,916
1,168,653
928,490
—
%
25
%
Multifamily residential
247,457
222,647
189,342
11
%
31
%
Home equity lines of credit
539,938
521,778
440,105
3
%
23
%
Other consumer
165,865
166,788
148,247
(1
)%
12
%
Total consumer
705,803
688,566
588,352
3
%
20
%
States and political subdivisions
404,671
429,409
383,252
(6
)%
6
%
Other
125,310
123,461
144,133
1
%
(13
)%
Total loans receivable, including loans held for sale
8,320,705
8,173,894
6,616,657
2
%
26
%
Less loans held for sale 1
(33,156
)
(50,649
)
(38,833
)
(35
)%
(15
)%
Total loans receivable
$
8,287,549
$
8,123,245
$
6,577,824
2
%
26
%
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)
Dec 31, 2018
Sep 30, 2018
Dec 31, 2017
Dec 31, 2018
Dec 31, 2018
Dec 31, 2018
Custom and owner occupied construction
$
—
1,599
48
—
—
—
Pre-sold and spec construction
463
474
38
463
—
—
Total residential construction
463
2,073
86
463
—
—
Land development
2,166
5,147
7,888
786
—
1,380
Consumer land or lots
1,428
1,592
1,861
675
—
753
Unimproved land
9,338
9,815
10,866
7,806
—
1,532
Developed lots for operative builders
68
68
116
43
—
25
Commercial lots
1,046
1,046
1,312
—
—
1,046
Other construction
120
147
151
9
—
111
Total land, lot and other construction
14,166
17,815
22,194
9,319
—
4,847
Owner occupied
5,940
11,246
13,848
4,706
—
1,234
Non-owner occupied
10,567
10,847
4,584
10,294
—
273
Total commercial real estate
16,507
22,093
18,432
15,000
—
1,507
Commercial and industrial
3,914
5,615
5,294
3,462
210
242
Agriculture
7,040
7,856
3,931
6,682
208
150
1st lien
10,290
9,543
9,261
8,992
788
510
Junior lien
565
2,610
567
531
34
—
Total 1-4 family
10,855
12,153
9,828
9,523
822
510
Multifamily residential
—
613
—
—
—
—
Home equity lines of credit
2,770
3,470
3,292
2,188
394
188
Other consumer
456
417
322
338
82
36
Total consumer
3,226
3,887
3,614
2,526
476
224
States and political subdivisions
—
—
1,800
—
—
—
Other
579
—
—
277
302
—
Total
$
56,750
72,105
65,179
47,252
2,018
7,480
Glacier Bancorp, Inc. Credit Quality Summary by Regulatory Classification (continued)
Accruing 30-89 Days Delinquent Loans, by Loan Type
% Change from
(Dollars in thousands)
Dec 31, 2018
Sep 30, 2018
Dec 31, 2017
Sep 30, 2018
Dec 31, 2017
Custom and owner occupied construction
$
1,661
$
4,502
$
300
(63
)%
454
%
Pre-sold and spec construction
887
494
102
80
%
770
%
Total residential construction
2,548
4,996
402
(49
)%
534
%
Land development
228
516
—
(56
)%
n/m
Consumer land or lots
200
235
353
(15
)%
(43
)%
Unimproved land
579
629
662
(8
)%
(13
)%
Developed lots for operative builders
122
—
7
n/m
1,643
%
Commercial lots
203
—
108
n/m
88
%
Other construction
4,170
—
—
n/m
n/m
Total land, lot and other construction
5,502
1,380
1,130
299
%
387
%
Owner occupied
2,981
2,872
4,726
4
%
(37
)%
Non-owner occupied
1,245
1,131
2,399
10
%
(48
)%
Total commercial real estate
4,226
4,003
7,125
6
%
(41
)%
Commercial and industrial
3,374
4,791
6,472
(30
)%
(48
)%
Agriculture
6,455
1,332
3,205
385
%
101
%
1st lien
5,384
3,795
10,865
42
%
(50
)%
Junior lien
118
420
4,348
(72
)%
(97
)%
Total 1-4 family
5,502
4,215
15,213
31
%
(64
)%
Multifamily Residential
—
—
—
n/m
n/m
Home equity lines of credit
3,562
2,467
1,962
44
%
82
%
Other consumer
1,650
1,903
2,109
(13
)%
(22
)%
Total consumer
5,212
4,370
4,071
19
%
28
%
States and political subdivisions
229
—
—
n/m
n/m
Other
519
94
69
452
%
652
%
Total
$
33,567
$
25,181
$
37,687
33
%
(11
)%
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
