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Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2019
Globe Newswire 18-Apr-2019 4:31 PM
1st Quarter 2019 Highlights:
Net income of $49.1 million for the current quarter, an increase of $10.5 million, or 27 percent, over the prior year first quarter net income of $38.6 million.
Current quarter diluted earnings per share of $0.58, an increase of 21 percent from the prior year first quarter diluted earnings per share of $0.48.
Current quarter loan growth was $38.5 million, or 2 percent annualized.
Core deposits grew $70.1 million, or 3 percent annualized, during the current quarter with non-interest bearing deposit growth of $49.9 million, or 7 percent annualized.
Continued credit quality improvement with non-performing assets declining $5.9 million, or 10 percent from the prior quarter.
Net interest margin of 4.34 percent as a percentage of earning assets, on a tax equivalent basis, a 4 basis points increase over the prior quarter, and a 24 basis points increase over the prior year first quarter net interest margin of 4.10 percent.
Declared and paid a quarterly dividend of $0.26 per share. The dividend was the 136th 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 holding company for The First National Bank of Layton, a community bank based in Layton, Utah, with total assets of $335 million.
On April 3, 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, with total assets of $830 million.
Financial Highlights
At or for the Three Months ended
(Dollars in thousands, except per share and market data)
Mar 31, 2019
Dec 31, 2018
Mar 31, 2018
Operating results
Net income
$
49,132
49,599
38,559
Basic earnings per share
$
0.58
0.59
0.48
Diluted earnings per share
$
0.58
0.59
0.48
Dividends declared per share 1
$
0.26
0.56
0.23
Market value per share
Closing
$
40.07
39.62
38.38
High
$
45.47
47.67
41.24
Low
$
37.58
36.84
36.72
Selected ratios and other data
Number of common stock shares outstanding
84,588,199
84,521,692
84,511,472
Average outstanding shares - basic
84,549,974
84,521,640
80,808,904
Average outstanding shares - diluted
84,614,248
84,610,018
80,887,135
Return on average assets (annualized)
1.67
%
1.66
%
1.50
%
Return on average equity (annualized)
13.02
%
13.08
%
11.90
%
Efficiency ratio
55.37
%
53.93
%
57.80
%
Dividend payout ratio 1
44.83
%
94.92
%
47.92
%
Loan to deposit ratio
87.14
%
87.64
%
81.83
%
Number of full time equivalent employees
2,634
2,623
2,545
Number of locations
169
167
166
Number of ATMs
222
222
223
______________________________ 1 Includes a special dividend declared of $0.30 per share for the three months ended December 31, 2018.
KALISPELL, Mont., April 18, 2019 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $49.1 million for the current quarter, an increase of $10.5 million, or 27 percent, from the $38.6 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.58 per share, an increase of 21 percent from the prior year first quarter diluted earnings per share of $0.48. Included in the current quarter was $214 thousand of acquisition-related expenses. "The Glacier team delivered a great first quarter with solid business performance and the announcement of two acquisitions totaling over $1.1 billion in assets. We continue to selectively grow the business and are pleased to see the continued improvement in our credit quality," said Randy Chesler, President and Chief Executive Officer. "We are all very excited about the prospect of First National Bank of Layton and Heritage Bank joining the Glacier family."
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 six banking offices located in Layton, Bountiful, Clearfield, and Draper. As of December 31, 2018, FNB had total assets of $335 million, total loans of $243 million and total deposits of $285 million. The acquisition has received the required regulatory approvals, is subject to other customary conditions of closing and is expected to be completed during the second quarter of 2019. Upon closing of the transaction, FNB will become the Company's fifteenth Bank Division.
On April 3, 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 December 31, 2018, Heritage had total assets of $830 million, total loans of $596 million and total deposits of $720 million. The acquisition is subject to required regulatory approvals and other customary conditions of closing and is expected to be completed during the third quarter of 2019. Upon closing of the transaction, Heritage will become the Company's sixteenth Bank Division.
Asset Summary
$ Change from
(Dollars in thousands)
Mar 31, 2019
Dec 31, 2018
Mar 31, 2018
Dec 31, 2018
Mar 31, 2018
Cash and cash equivalents
$
202,527
203,790
451,048
(1,263
)
(248,521
)
Debt securities, available-for-sale
2,522,322
2,571,663
2,154,845
(49,341
)
367,477
Debt securities, held-to-maturity
255,572
297,915
634,413
(42,343
)
(378,841
)
Total debt securities
2,777,894
2,869,578
2,789,258
(91,684
)
(11,364
)
Loans receivable
Residential real estate
884,732
887,742
831,021
(3,010
)
53,711
Commercial real estate
4,686,082
4,657,561
4,251,003
28,521
435,079
Other commercial
1,909,452
1,911,171
1,839,293
(1,719
)
70,159
Home equity
562,381
544,688
489,879
17,693
72,502
Other consumer
283,423
286,387
258,834
(2,964
)
24,589
Loans receivable
8,326,070
8,287,549
7,670,030
38,521
656,040
Allowance for loan and lease losses
(129,786
)
(131,239
)
(127,608
)
1,453
(2,178
)
Loans receivable, net
8,196,284
8,156,310
7,542,422
39,974
653,862
Other assets
897,074
885,806
876,050
11,268
21,024
Total assets
$
12,073,779
12,115,484
11,658,778
(41,705
)
415,001
Total debt securities of $2.778 billion at March 31, 2019 decreased $91.7 million, or 3 percent, during the current quarter and decreased $11.4 million, or 41 basis points, from the prior year first quarter. Debt securities represented 23 percent of total assets at March 31, 2019 compared to 24 percent of total assets at December 31, 2018 and March 31, 2018.
The loan portfolio of $8.326 billion increased $38.5 million, or 2 percent annualized, during the current quarter. The loan category with the largest dollar increase was commercial real estate loans which increased $28.5 million, or 61 basis points. The loan category with the largest percentage increase was home equity loans which increased $17.7 million, or 3 percent. The loan portfolio increased $656 million, or 9 percent, since March 31, 2018, with the largest increase in commercial real estate loans, which increased $435 million, or 10 percent.
Credit Quality Summary
At or for the Three Months ended
At or for the Year ended
At or for the Three Months ended
(Dollars in thousands)
Mar 31, 2019
Dec 31, 2018
Mar 31, 2018
Allowance for loan and lease losses
Balance at beginning of period
$
131,239
129,568
129,568
Provision for loan losses
57
9,953
795
Charge-offs
(3,341
)
(17,807
)
(5,007
)
Recoveries
1,831
9,525
2,252
Balance at end of period
$
129,786
131,239
127,608
Other real estate owned
$
8,125
7,480
14,132
Accruing loans 90 days or more past due
2,451
2,018
5,402
Non-accrual loans
40,269
47,252
54,449
Total non-performing assets
$
50,845
56,750
73,983
Non-performing assets as a percentage of subsidiary assets
0.42
%
0.47
%
0.64
%
Allowance for loan and lease losses as a percentage of non-performing loans
304
%
266
%
213
%
Allowance for loan and lease losses as a percentage of total loans
1.56
%
1.58
%
1.66
%
Net charge-offs as a percentage of total loans
0.02
%
0.10
%
0.04
%
Accruing loans 30-89 days past due
$
36,894
33,567
44,963
Accruing troubled debt restructurings
$
24,468
25,833
41,649
Non-accrual troubled debt restructurings
$
6,747
10,660
13,289
U.S. government guarantees included in non-performing assets
$
2,649
4,811
4,548
The current quarter had continued improvement in non-performing assets which ended the current quarter at $50.8 million, which was a decrease of $5.9 million, or 10 percent, from the prior quarter and a decrease of $23.1 million, or 31 percent, from the prior year first quarter. Non-performing assets as a percentage of subsidiary assets at March 31, 2019 was 0.42 percent, a decrease of 5 basis points from the prior quarter, and a decrease of 22 basis points from the prior year first quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $36.9 million at March 31, 2019 increased $3.3 million from prior quarter and decreased $8.1 million from prior year first quarter. Early stage delinquencies as a percentage of loans at March 31, 2019 was 0.44 percent, which was an increase of 3 basis points from prior quarter and was a decrease of 15 basis points from prior year first quarter. The allowance for loan and lease losses ("allowance") as a percent of total loans outstanding at March 31, 2019 was 1.56 percent, which was a 2 basis points decrease compared to the prior quarter and a decrease of 10 basis points from a year ago with such decreases reflective of the stabilizing credit quality.
Credit Quality Trends and Provision for Loan Losses
(Dollars in thousands)
Provision for Loan Losses
Net Charge-Offs
ALLL as a Percent of Loans
Accruing Loans 30-89 Days Past Due as a Percent of Loans
Non-Performing Assets to Total Subsidiary Assets
First quarter 2019
$
57
$
1,510
1.56
%
0.44
%
0.42
%
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
%
Net charge-offs for the current quarter were $1.5 million compared to $2.5 million for the prior quarter and $2.8 million from the same quarter last year. Current quarter provision for loan losses was $57 thousand, compared to $1.2 million in the prior quarter and $795 thousand in the prior year first 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)
Mar 31, 2019
Dec 31, 2018
Mar 31, 2018
Dec 31, 2018
Mar 31, 2018
Deposits
Non-interest bearing deposits
$
3,051,119
3,001,178
2,811,469
49,941
239,650
NOW and DDA accounts
2,383,806
2,391,307
2,400,693
(7,501
)
(16,887
)
Savings accounts
1,373,544
1,346,790
1,328,047
26,754
45,497
Money market deposit accounts
1,689,962
1,684,284
1,778,068
5,678
(88,106
)
Certificate accounts
896,731
901,484
955,105
(4,753
)
(58,374
)
Core deposits, total
9,395,162
9,325,043
9,273,382
70,119
121,780
Wholesale deposits
192,953
168,724
145,463
24,229
47,490
Deposits, total
9,588,115
9,493,767
9,418,845
94,348
169,270
Repurchase agreements
489,620
396,151
395,794
93,469
93,826
Federal Home Loan Bank advances
154,683
440,175
155,057
(285,492
)
(374
)
Other borrowed funds
14,738
14,708
8,204
30
6,534
Subordinated debentures
134,048
134,051
134,061
(3
)
(13
)
Other liabilities
141,725
120,778
92,793
20,947
48,932
Total liabilities
$
10,522,929
10,599,630
10,204,754
(76,701
)
318,175
Core deposits of $9.395 billion as of March 31, 2019 increased $70.1 million, or 3 percent annualized, from the prior quarter and increased $122 million, or 1 percent, from the prior year first quarter. Non-interest bearing deposits increased $49.9 million, or 2 percent, over the prior quarter and increased $240 million, or 9 percent, over the prior year first quarter.
Federal Home Loan Bank ("FHLB") advances of $155 million at March 31, 2019, decreased $285 million over the prior quarter and was stable over the prior year first quarter. FHLB advances and wholesale deposits will continue to fluctuate to supplement liquidity needs as necessary during the year.
Stockholders' Equity Summary
$ Change from
(Dollars in thousands, except per share data)
Mar 31, 2019
Dec 31, 2018
Mar 31, 2018
Dec 31, 2018
Mar 31, 2018
Common equity
$
1,526,963
1,525,281
1,471,047
1,682
55,916
Accumulated other comprehensive income (loss)
23,887
(9,427
)
(17,023
)
33,314
40,910
Total stockholders' equity
1,550,850
1,515,854
1,454,024
34,996
96,826
Goodwill and core deposit intangible, net
(337,134
)
(338,828
)
(343,991
)
1,694
6,857
Tangible stockholders' equity
$
1,213,716
1,177,026
1,110,033
36,690
103,683
Stockholders' equity to total assets
12.84
%
12.51
%
12.47
%
Tangible stockholders' equity to total tangible assets
10.34
%
9.99
%
9.81
%
Book value per common share
$
18.33
17.93
17.21
0.40
1.12
Tangible book value per common share
$
14.35
13.93
13.13
0.42
1.22
Tangible stockholders' equity of $1.214 billion at March 31, 2019 increased $36.7 million compared to the prior quarter which was primarily the result of an increase in other comprehensive income and earnings retention, which was partially offset by a decrease of $25.5 million from the cumulative-effect adjustments related to the adoption of new accounting standards. Tangible stockholders' equity increased $104 million over the prior year first quarter which was the result of earnings retention and an increase in other comprehensive income, which was partially offset by the adoption of the accounting standards. Tangible book value per common share at quarter end increased $0.42 per share from the prior quarter and increased $1.22 per share from a year ago.
Cash Dividends On March 27, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend was payable April 18, 2019 to shareholders of record on April 9, 2019. The dividend was the 136th 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 March 31, 2019 Compared to December 31, 2018, and March 31, 2018
Income Summary
Three Months ended
$ Change from
(Dollars in thousands)
Mar 31, 2019
Dec 31, 2018
Mar 31, 2018
Dec 31, 2018
Mar 31, 2018
Net interest income
Interest income
$
126,116
125,310
103,066
806
23,050
Interest expense
10,904
9,436
7,774
1,468
3,130
Total net interest income
115,212
115,874
95,292
(662
)
19,920
Non-interest income
Service charges and other fees
18,015
19,708
16,871
(1,693
)
1,144
Miscellaneous loan fees and charges
967
1,278
1,477
(311
)
(510
)
Gain on sale of loans
5,798
5,639
6,097
159
(299
)
Gain (loss) on sale of investments
213
(357
)
(333
)
570
546
Other income
3,481
2,226
1,974
1,255
1,507
Total non-interest income
28,474
28,494
26,086
(20
)
2,388
Total income
$
143,686
144,368
121,378
(682
)
22,308
Net interest margin (tax-equivalent)
4.34
%
4.30
%
4.10
%
Net Interest Income The current quarter net interest income of $115 million was stable compared to the prior quarter and increased $19.9 million, or 21 percent, from the prior year first quarter. The increase in net interest income over the prior year first quarter was primarily driven by interest rate increases and an increase in commercial loans. Interest income on commercial loans increased $1.3 million, or 2 percent, from the prior quarter and increased $18.0 million, or 28 percent, from the prior year first quarter.
The current quarter interest expense of $10.9 million increased $1.5 million, or 16 percent, over the prior quarter which was primarily driven by seasonal fluctuations in core deposits, which were supplemented using higher cost borrowings. As deposits increased during the current quarter, FHLB advances were reduced by $285 million to $155 million, the same amount at the end of the prior year first quarter. The current quarter interest expense increased $3.1 million, or 40 percent, from the prior year first quarter and was primarily due to the increased amount of deposits and other funding. The cost of core deposits for the current quarter was 19 basis points compared to 17 basis points for the prior quarter and 15 basis points in the prior year first quarter. The total cost of funding (including non-interest bearing deposits) for the current quarter was 43 basis points compared to 36 basis points for the prior quarter and 35 basis points for the prior year first quarter.
The Company's net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.34 percent compared to 4.30 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 included 2 basis points from the recovery of interest on loans previously placed on non-accrual. The current quarter net interest margin increased 24 basis points over the prior year first quarter net interest margin of 4.10 percent. The increase in the margin from the prior year first quarter resulted from the remix of earning assets to higher yielding loans, increased yields on the loan portfolio which more than offset the increase in funding costs. "The current quarter net interest margin expansion reflects the 10 basis points higher yield on earnings assets, while the cost of core deposit funding increased 2 basis points," said Ron Copher, Chief Financial Officer.
Non-interest Income Non-interest income for the current quarter totaled $28.5 million which was comparable to the prior quarter and an increase of $2.4 million, or 9 percent, over the same quarter last year. Service charges and other fees of $18.0 million for the current quarter decreased $1.7 million, or 9 percent, from the prior quarter due to seasonality. Service charges and other fees for the current quarter increased $1.1 million, or 7 percent, from the prior year first quarter which was due to the increased number of accounts from organic growth and acquisitions. Other income increased $1.3 million from the prior quarter and increased $1.5 million over the prior year first quarter.
Non-interest Expense Summary
Three Months ended
$ Change from
(Dollars in thousands)
Mar 31, 2019
Dec 31, 2018
Mar 31, 2018
Dec 31, 2018
Mar 31, 2018
Compensation and employee benefits
$
52,728
50,385
45,721
2,343
7,007
Occupancy and equipment
8,437
7,884
7,274
553
1,163
Advertising and promotions
2,388
2,434
2,170
(46
)
218
Data processing
3,892
3,951
3,967
(59
)
(75
)
Other real estate owned
139
264
72
(125
)
67
Regulatory assessments and insurance
1,285
1,263
1,206
22
79
Core deposit intangibles amortization
1,694
1,731
1,056
(37
)
638
Other expenses
12,267
13,964
12,161
(1,697
)
106
Total non-interest expense
$
82,830
81,876
73,627
954
9,203
Total non-interest expense of $82.8 million for the current quarter increased $1.0 million, or 1 percent, over the prior quarter and increased $9.2 million, or 13 percent, over the prior year first quarter. Compensation and employee benefits increased by $2.3 million, or 5 percent, from the prior quarter primarily from annual salary increases and benefit adjustments. Compensation and employee benefits increased by $7.0 million, or 15 percent, from the prior year first quarter principally due to the increased number of employees driven by organic growth and the prior year first quarter acquisitions. Occupancy and equipment expense increased $1.2 million, or 16 percent, over the prior year first quarter as a result of the prior year first quarter acquisitions and general cost increases. Other expenses of $12.3 million, decreased $1.7 million, or 12 percent, from the prior quarter which was driven by decreases in several categories including acquisition-related expenses and expenses connected with equity investments in New Market Tax Credit projects. Other expenses increased $106 thousand, or 87 basis points, from the prior year first quarter and included a decrease of $1.6 million in acquisition-related expenses which was offset by a general increase in costs from organic growth and the prior year first quarter acquisitions. Acquisition-related expenses were $214 thousand during the current quarter compared to $520 thousand in the prior quarter and $1.8 million in the prior year first quarter.
Federal and State Income Tax Expense Tax expense during the first quarter of 2019 was $11.7 million, with no change from the prior quarter and an increase of $3.3 million, or 39 percent, from the prior year first quarter. The effective tax rate in the current and prior quarter was 19 percent which compares to 18 percent in the prior year first quarter.
Efficiency Ratio The current quarter efficiency ratio was 55.37 percent, a 144 basis points increase from the prior quarter efficiency ratio of 53.93 percent and was driven by increased operating costs combined with a slight decrease in net interest income. The current quarter efficiency ratio decreased 243 basis points from the prior year first quarter efficiency ratio of 57.80 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 FederalReserve 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, April 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 4067719. To participate on the webcast, log on to:https://edge.media-server.com/m6/p/hd6quiqa. 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 4067719 by May 3, 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)
March 31, 2019
December 31, 2018
March 31, 2018
Assets
Cash on hand and in banks
$
139,333
161,782
140,625
Federal funds sold
115
—
230
Interest bearing cash deposits
63,079
42,008
310,193
Cash and cash equivalents
202,527
203,790
451,048
Debt securities, available-for-sale
2,522,322
2,571,663
2,154,845
Debt securities, held-to-maturity
255,572
297,915
634,413
Total debt securities
2,777,894
2,869,578
2,789,258
Loans held for sale, at fair value
29,389
33,156
37,058
Loans receivable
8,326,070
8,287,549
7,670,030
Allowance for loan and lease losses
(129,786
)
(131,239
)
(127,608
)
Loans receivable, net
8,196,284
8,156,310
7,542,422
Premises and equipment, net
277,619
241,528
238,491
Other real estate owned
8,125
7,480
14,132
Accrued interest receivable
57,367
54,408
54,376
Deferred tax asset
12,554
23,564
32,929
Core deposit intangible, net
47,548
49,242
54,456
Goodwill
289,586
289,586
289,535
Non-marketable equity securities
16,435
27,871
21,910
Bank-owned life insurance
82,819
82,320
81,787
Other assets
75,632
76,651
51,376
Total assets
$
12,073,779
12,115,484
11,658,778
Liabilities
Non-interest bearing deposits
$
3,051,119
3,001,178
2,811,469
Interest bearing deposits
6,536,996
6,492,589
6,607,376
Securities sold under agreements to repurchase
489,620
396,151
395,794
FHLB advances
154,683
440,175
155,057
Other borrowed funds
14,738
14,708
8,204
Subordinated debentures
134,048
134,051
134,061
Accrued interest payable
4,709
4,252
3,740
Other liabilities
137,016
116,526
89,053
Total liabilities
10,522,929
10,599,630
10,204,754
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
846
845
845
Paid-in capital
1,051,299
1,051,253
1,048,860
Retained earnings - substantially restricted
474,818
473,183
421,342
Accumulated other comprehensive income (loss)
23,887
(9,427
)
(17,023
)
Total stockholders' equity
1,550,850
1,515,854
1,454,024
Total liabilities and stockholders' equity
$
12,073,779
12,115,484
11,658,778
Glacier Bancorp, Inc. Unaudited Condensed Consolidated Statements of Operations
Three Months ended
(Dollars in thousands, except per share data)
March 31, 2019
December 31, 2018
March 31, 2018
Interest Income
Debt securities
$
21,351
22,016
20,142
Residential real estate loans
10,779
10,751
8,785
Commercial loans
83,539
82,238
65,515
Consumer and other loans
10,447
10,305
8,624
Total interest income
126,116
125,310
103,066
Interest Expense
Deposits
5,341
4,989
3,916
Securities sold under agreements to repurchase
802
707
485
Federal Home Loan Bank advances
3,055
2,146
2,089
Other borrowed funds
38
(10
)
16
Subordinated debentures
1,668
1,604
1,268
Total interest expense
10,904
9,436
7,774
Net Interest Income
115,212
115,874
95,292
Provision for loan losses
57
1,246
795
Net interest income after provision for loan losses
115,155
114,628
94,497
Non-Interest Income
Service charges and other fees
18,015
19,708
16,871
Miscellaneous loan fees and charges
967
1,278
1,477
Gain on sale of loans
5,798
5,639
6,097
Gain (loss) on sale of debt securities
213
(357
)
(333
)
Other income
3,481
2,226
1,974
Total non-interest income
28,474
28,494
26,086
Non-Interest Expense
Compensation and employee benefits
52,728
50,385
45,721
Occupancy and equipment
8,437
7,884
7,274
Advertising and promotions
2,388
2,434
2,170
Data processing
3,892
3,951
3,967
Other real estate owned
139
264
72
Regulatory assessments and insurance
1,285
1,263
1,206
Core deposit intangibles amortization
1,694
1,731
1,056
Other expenses
12,267
13,964
12,161
Total non-interest expense
82,830
81,876
73,627
Income Before Income Taxes
60,799
61,246
46,956
Federal and state income tax expense
11,667
11,647
8,397
Net Income
$
49,132
49,599
38,559
Glacier Bancorp, Inc. Average Balance Sheets
Three Months ended
March 31, 2019
March 31, 2018
(Dollars in thousands)
Average Balance
Interest & Dividends
Average Yield/ Rate
Average Balance
Interest & Dividends
Average Yield/ Rate
Assets
Residential real estate loans
$
917,324
$
10,779
4.70
%
$
783,817
$
8,785
4.48
%
Commercial loans 1
6,524,190
84,613
5.26
%
5,551,619
66,474
4.86
%
Consumer and other loans
839,011
10,447
5.05
%
719,153
8,624
4.86
%
Total loans 2
8,280,525
105,839
5.18
%
7,054,589
83,883
4.82
%
Tax-exempt debt securities 3
960,569
9,950
4.14
%
1,093,736
12,795
4.68
%
Taxable debt securities 4
1,845,677
13,729
2.98
%
1,654,318
10,273
2.48
%
Total earning assets
11,086,771
129,518
4.74
%
9,802,643
106,951
4.42
%
Goodwill and intangibles
337,963
219,463
Non-earning assets
520,353
390,857
Total assets
$
11,945,087
$
10,412,963
Liabilities
Non-interest bearing deposits
$
2,943,770
$
—
—
%
$
2,472,151
$
—
—
%
NOW and DDA accounts
2,320,928
961
0.17
%
2,011,464
818
0.16
%
Savings accounts
1,359,807
234
0.07
%
1,184,807
193
0.07
%
Money market deposit accounts
1,690,305
1,010
0.24
%
1,631,863
719
0.18
%
Certificate accounts
905,005
2,014
0.90
%
876,425
1,319
0.61
%
Total core deposits
9,219,815
4,219
0.19
%
8,176,710
3,049
0.15
%
Wholesale deposits 5
169,361
1,122
2.69
%
149,577
867
2.35
%
FHLB advances
352,773
3,055
3.46
%
224,847
2,089
3.72
%
Repurchase agreements and other borrowed funds
556,325
2,508
1.83
%
521,641
1,769
1.38
%
Total funding liabilities
10,298,274
10,904
0.43
%
9,072,775
7,774
0.35
%
Other liabilities
116,143
25,973
Total liabilities
10,414,417
9,098,748
Stockholders' Equity
Common stock
846
808
Paid-in capital
1,051,261
906,030
Retained earnings
471,626
420,552
Accumulated other comprehensive loss
6,937
(13,175
)
Total stockholders' equity
1,530,670
1,314,215
Total liabilities and stockholders' equity
$
11,945,087
$
10,412,963
Net interest income (tax-equivalent)
$
118,614
$
99,177
Net interest spread (tax-equivalent)
4.31
%
4.07
%
Net interest margin (tax-equivalent)
4.34
%
4.10
%
______________________________
1
Includes tax effect of $1.1 million and $959 thousand on tax-exempt municipal loan and lease income for the three months ended March 31, 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 March 31, 2019 and 2018, respectively.
4
Includes tax effect of $293 thousand and $304 thousand on federal income tax credits for the three months ended March 31, 2019 and 2018.
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)
Mar 31, 2019
Dec 31, 2018
Mar 31, 2018
Dec 31, 2018
Mar 31, 2018
Custom and owner occupied construction
$
126,820
$
126,595
$
140,440
—
%
(10
)%
Pre-sold and spec construction
135,137
121,938
100,376
11
%
35
%
Total residential construction
261,957
248,533
240,816
5
%
9
%
Land development
126,417
137,814
76,528
(8
)%
65
%
Consumer land or lots
125,818
127,775
119,469
(2
)%
5
%
Unimproved land
75,113
83,579
68,862
(10
)%
9
%
Developed lots for operative builders
16,171
17,061
13,093
(5
)%
24
%
Commercial lots
35,511
34,096
43,232
4
%
(18
)%
Other construction
454,965
520,005
420,632
(13
)%
8
%
Total land, lot, and other construction
833,995
920,330
741,816
(9
)%
12
%
Owner occupied
1,367,530
1,343,563
1,292,206
2
%
6
%
Non-owner occupied
1,662,390
1,605,960
1,449,166
4
%
15
%
Total commercial real estate
3,029,920
2,949,523
2,741,372
3
%
11
%
Commercial and industrial
922,124
907,340
865,574
2
%
7
%
Agriculture
641,146
646,822
620,342
(1
)%
3
%
1st lien
1,102,920
1,108,227
1,014,361
—
%
9
%
Junior lien
54,964
56,689
66,288
(3
)%
(17
)%
Total 1-4 family
1,157,884
1,164,916
1,080,649
(1
)%
7
%
Multifamily residential
268,156
247,457
219,310
8
%
22
%
Home equity lines of credit
557,895
539,938
481,204
3
%
16
%
Other consumer
163,568
165,865
162,171
(1
)%
1
%
Total consumer
721,463
705,803
643,375
2
%
12
%
States and political subdivisions
398,848
404,671
421,252
(1
)%
(5
)%
Other
119,966
125,310
132,582
(4
)%
(10
)%
Total loans receivable, including loans held for sale
8,355,459
8,320,705
7,707,088
—
%
8
%
Less loans held for sale 1
(29,389
)
(33,156
)
(37,058
)
(11
)%
(21
)%
Total loans receivable
$
8,326,070
$
8,287,549
$
7,670,030
—
%
9
%
______________________________ 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)
Mar 31, 2019
Dec 31, 2018
Mar 31, 2018
Mar 31, 2019
Mar 31, 2019
Mar 31, 2019
Custom and owner occupied construction
$
—
—
48
—
—
—
Pre-sold and spec construction
456
463
492
456
—
—
Total residential construction
456
463
540
456
—
—
Land development
2,272
2,166
7,802
713
—
1,559
Consumer land or lots
1,126
1,428
1,622
635
—
491
Unimproved land
9,222
9,338
10,294
7,648
42
1,532
Developed lots for operative builders
67
68
83
42
—
25
Commercial lots
663
1,046
1,312
—
—
663
Other construction
111
120
319
—
—
111
Total land, lot and other construction
13,461
14,166
21,432
9,038
42
4,381
Owner occupied
7,229
5,940
12,594
5,953
42
1,234
Non-owner occupied
7,368
10,567
5,346
7,368
—
—
Total commercial real estate
14,597
16,507
17,940
13,321
42
1,234
Commercial and industrial
3,893
3,914
6,313
3,602
57
234
Agriculture
4,488
7,040
10,476
3,397
941
150
1st lien
10,279
10,290
8,717
7,198
1,193
1,888
Junior lien
582
565
4,271
512
70
—
Total 1-4 family
10,861
10,855
12,988
7,710
1,263
1,888
Multifamily residential
—
—
652
—
—
—
Home equity lines of credit
2,288
2,770
3,312
2,100
—
188
Other consumer
453
456
330
330
73
50
Total consumer
2,741
3,226
3,642
2,430
73
238
Other
348
579
—
315
33
—
Total
$
50,845
56,750
73,983
40,269
2,451
8,125
Glacier Bancorp, Inc. Credit Quality Summary by Regulatory Classification (continued)
Accruing 30-89 Days Delinquent Loans, by Loan Type
% Change from
(Dollars in thousands)
Mar 31, 2019
Dec 31, 2018
Mar 31, 2018
Dec 31, 2018
Mar 31, 2018
Custom and owner occupied construction
$
282
$
1,661
$
611
(83
)%
(54
)%
Pre-sold and spec construction
553
887
267
(38
)%
107
%
Total residential construction
835
2,548
878
(67
)%
(5
)%
Land development
—
228
585
(100
)%
(100
)%
Consumer land or lots
510
200
485
155
%
5
%
Unimproved land
685
579
889
18
%
(23
)%
Developed lots for operative builders
4
122
464
(97
)%
(99
)%
Commercial lots
331
203
194
63
%
71
%
Other construction
1,234
4,170
76
(70
)%
1,524
%
Total land, lot and other construction
2,764
5,502
2,693
(50
)%
3
%
Owner occupied
4,463
2,981
13,904
50
%
(68
)%
Non-owner occupied
6,604
1,245
3,842
430
%
72
%
Total commercial real estate
11,067
4,226
17,746
162
%
(38
)%
Commercial and industrial
4,070
3,374
5,746
21
%
(29
)%
Agriculture
5,709
6,455
3,845
(12
)%
48
%
1st lien
7,179
5,384
9,597
33
%
(25
)%
Junior lien
583
118
240
394
%
143
%
Total 1-4 family
7,762
5,502
9,837
41
%
(21
)%
Home equity lines of credit
2,925
3,562
2,316
(18
)%
26
%
Other consumer
1,357
1,650
1,849
(18
)%
(27
)%
Total consumer
4,282
5,212
4,165
(18
)%
3
%
States and political subdivisions
—
229
—
(100
)%
n/m
Other
405
519
53
(22
)%
664
%
Total
$
36,894
$
33,567
$
44,963
10
%
(18
)%
______________________________ 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
