HIGHLIGHTS:
Glacier Bancorp, Inc. (Nasdaq:GBCI) reported net income of $29.5
million for the current quarter, an increase of $1.4 million, or 5
percent, from the $28.1 million of net income for the prior year
fourth quarter. Diluted earnings per share for the current
quarter was $0.39 per share, an increase of $0.02, or 5 percent,
from the prior year fourth quarter diluted earnings per share of
$0.37. Included in the current quarter was $658 thousand of
one-time acquisition related expenses. “The fourth quarter
capped off another very good year for Glacier Bancorp,” said Mick
Blodnick, President and Chief Executive Officer. “We produced
all time record earnings led by strong loan growth, continued
improvement in our credit quality and a solid and consistent net
interest margin. Collectively, this helped us to once again
this year post some excellent performance metrics, a feat our
entire staff should be very proud of what they helped achieve,”
Blodnick said.
Net income for the twelve months ended December
31, 2015 was a record $116.1 million, an increase of $3.4 million,
or 3 percent, from the $112.8 million of net income for the same
period in the prior year. Diluted earnings per share for the
twelve months ended December 31, 2015 was $1.54 per share, an
increase of $0.03, or 2 percent, from the diluted earnings per
share for the prior year.
On October 31, 2015, the Company completed the
acquisition of Cañon Bank Corporation and its subsidiary Cañon
National Bank (collectively, “Cañon”). Goodwill of $9.8
million resulted from the acquisition which was based on the
estimated fair value of the assets acquired and liabilities
assumed. “With the closing of Cañon National Bank this past
quarter we add another quality financial institution to our
Company,” Blodnick stated. “This new addition not only gains
us access to the “front range” of Colorado with some new and
exciting markets, but more importantly gives us some very talented
bankers which were the real key to this transaction.” On
February 28, 2015, the Company completed the acquisition of Montana
Community Banks, Inc. and its subsidiary, Community Bank, Inc.
(collectively, “CB”) which resulted in goodwill of $1.1
million. The Company incurred $2.3 million of legal and
professional expenses in connection with the CB and Cañon
acquisitions and the CB data conversion and integration during the
current year. The Company’s results of operations and
financial condition include the acquisitions of CB and Cañon from
the acquisition dates and the following table provides information
on the fair value of selected classifications of assets and
liabilities acquired:
|
Cañon |
|
CB |
|
|
|
Oct 31, |
|
Feb 28, |
|
|
(Dollars in
thousands) |
2015 |
|
2015 |
|
Total |
Total assets |
$ |
270,121 |
|
|
175,774 |
|
|
445,895 |
|
Investment securities |
68,486 |
|
|
42,350 |
|
|
110,836 |
|
Loans receivable |
159,759 |
|
|
84,689 |
|
|
244,448 |
|
Non-interest bearing
deposits |
89,083 |
|
|
41,779 |
|
|
130,862 |
|
Interest bearing
deposits |
148,243 |
|
|
105,041 |
|
|
253,284 |
|
Federal Home Loan Bank
advances and other borrowed funds |
— |
|
|
3,292 |
|
|
3,292 |
|
Asset Summary
|
|
|
|
|
|
|
$ Change from |
|
Dec 31, |
|
Sep 30, |
|
Dec 31, |
|
Sep 30, |
|
Dec
31, |
|
(Dollars in
thousands) |
2015 |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Cash and cash
equivalents |
$ |
193,253 |
|
|
242,835 |
|
|
442,409 |
|
|
(49,582 |
) |
|
(249,156 |
) |
Investment securities,
available-for-sale |
2,610,760 |
|
|
2,530,994 |
|
|
2,387,428 |
|
|
79,766 |
|
|
223,332 |
|
Investment securities,
held-to-maturity |
702,072 |
|
|
651,822 |
|
|
520,997 |
|
|
50,250 |
|
|
181,075 |
|
Total investment securities |
3,312,832 |
|
|
3,182,816 |
|
|
2,908,425 |
|
|
130,016 |
|
|
404,407 |
|
Loans receivable |
|
|
|
|
|
|
|
|
|
Residential real estate |
688,912 |
|
|
644,694 |
|
|
611,463 |
|
|
44,218 |
|
|
77,449 |
|
Commercial |
3,733,517 |
|
|
3,581,667 |
|
|
3,263,448 |
|
|
151,850 |
|
|
470,069 |
|
Consumer and other |
656,252 |
|
|
650,058 |
|
|
613,184 |
|
|
6,194 |
|
|
43,068 |
|
Loans receivable |
5,078,681 |
|
|
4,876,419 |
|
|
4,488,095 |
|
|
202,262 |
|
|
590,586 |
|
Allowance for loan and lease
losses |
(129,697 |
) |
|
(130,768 |
) |
|
(129,753 |
) |
|
1,071 |
|
|
56 |
|
Loans receivable, net |
4,948,984 |
|
|
4,745,651 |
|
|
4,358,342 |
|
|
203,333 |
|
|
590,642 |
|
Other assets |
634,163 |
|
|
592,997 |
|
|
597,331 |
|
|
41,166 |
|
|
36,832 |
|
Total assets |
$ |
9,089,232 |
|
|
8,764,299 |
|
|
8,306,507 |
|
|
324,933 |
|
|
782,725 |
|
Total investment securities of $3.313 billion at
December 31, 2015 increased $130 million, or 4 percent, during the
current quarter and increased $404 million, or 14 percent, from
December 31, 2014. The increase in the investment portfolio
from the prior quarter and the prior year fourth quarter was the
result of continuing to selectively purchase investment securities
with the Company’s excess liquidity resulting from the sustained
increase in deposits. Investment securities represented 36
percent of total assets at December 31, 2015 compared to 35 percent
at December 31, 2014.
Excluding the Cañon acquisition, the Company
continues to experience growth in the loan portfolio which
increased $43.0 million, or 1 percent, during the current
quarter. Excluding the acquisition, the loan category with
the largest dollar increase during the current quarter was
commercial real estate loans which increased $25.7 million, or 1
percent. The loan category with the largest percentage
increase was residential construction (i.e., regulatory
classification) which increased $12.4 million or 11 percent over
the prior quarter. Excluding the CB and Cañon acquisitions,
the loan portfolio increased $346 million, or 8 percent, since
December 31, 2014 with $278 million of the increase coming from
growth in commercial loans. “Our organic loan growth was well
beyond our expectation this past year as a very strong first half
of the year gave us the momentum to exceed our loan goal for 2015,”
Blodnick said. “Loan volume in the fourth quarter was much
better than what we historically experience even with the customary
drop in agricultural lending. It was especially encouraging
to again see an increase in residential construction lending.
We have been working very hard this year to improve our totals in
this particular loan category and it’s nice to see it continue to
generate positive results.”
Credit Quality Summary
|
|
|
At or for the |
|
|
|
At or for the |
|
Nine Months |
|
At or for the |
|
Year ended |
|
ended |
|
Year ended |
|
Dec 31, |
|
Sep 30, |
|
Dec 31, |
(Dollars in
thousands) |
2015 |
|
2015 |
|
2014 |
Allowance for loan and
lease losses |
|
|
|
|
|
Balance at beginning of period |
$ |
129,753 |
|
|
129,753 |
|
|
130,351 |
|
Provision for loan losses |
2,284 |
|
|
1,873 |
|
|
1,912 |
|
Charge-offs |
(7,001 |
) |
|
(4,671 |
) |
|
(7,603 |
) |
Recoveries |
4,661 |
|
|
3,813 |
|
|
5,093 |
|
Balance at end of period |
$ |
129,697 |
|
|
130,768 |
|
|
129,753 |
|
Other real estate
owned |
$ |
26,815 |
|
|
26,609 |
|
|
27,804 |
|
Accruing loans 90 days or
more past due |
2,131 |
|
|
3,784 |
|
|
214 |
|
Non-accrual loans |
51,133 |
|
|
54,632 |
|
|
61,882 |
|
Total non-performing assets 1 |
$ |
80,079 |
|
|
85,025 |
|
|
89,900 |
|
Non-performing assets
as a percentage of subsidiary assets |
0.88 |
% |
|
0.97 |
% |
|
1.08 |
% |
Allowance for loan and
lease losses as a percentage of non-performing loans |
244 |
% |
|
224 |
% |
|
209 |
% |
Allowance for loan and
lease losses as a percentage of total loans |
2.55 |
% |
|
2.68 |
% |
|
2.89 |
% |
Net charge-offs as a
percentage of total loans |
0.05 |
% |
|
0.02 |
% |
|
0.06 |
% |
Accruing loans 30-89
days past due |
$ |
19,413 |
|
|
17,822 |
|
|
25,904 |
|
Accruing troubled debt
restructurings |
$ |
63,590 |
|
|
63,638 |
|
|
69,129 |
|
Non-accrual troubled
debt restructurings |
$ |
27,057 |
|
|
27,442 |
|
|
33,714 |
|
__________1 As of December 31, 2015,
non-performing assets have not been reduced by U.S. government
guarantees of $2.3 million.
Non-performing assets at December 31, 2015 were
$80.1 million, a decrease of $4.9 million, or 6 percent, during the
current quarter. Non-performing assets at December 31, 2015
decreased $9.8 million, or 11 percent, from a year ago. Early
stage delinquencies (accruing loans 30-89 days past due) of $19.4
million at December 31, 2015 increased $1.6 million from the prior
quarter and decreased $6.5 million from the prior year fourth
quarter.
The allowance for loan and lease losses
(“allowance”) was $130 million at December 31, 2015 consistent with
prior periods. The allowance was 2.55 percent of total loans
outstanding at December 31, 2015 compared to 2.68 percent at
September 30, 2015 and 2.89 percent at December 31, 2014. The
reduction in the allowance as a percentage of total loans was
driven primarily by loan growth, stabilizing credit quality, and no
allowance carried over from the bank acquisitions as a result of
the acquired loans recorded at fair value.
Credit Quality Trends and Provision for Loan
Losses
|
|
|
|
|
|
|
Accruing |
|
|
|
|
|
|
|
|
|
Loans 30-89 |
|
Non-Performing |
|
Provision |
|
Net |
|
ALLL |
|
Days Past Due |
|
Assets to |
|
for Loan |
|
Charge-Offs |
|
as a Percent |
|
as a Percent of |
|
Total Subsidiary |
(Dollars in
thousands) |
Losses |
|
(Recoveries) |
|
of Loans |
|
Loans |
|
Assets |
Fourth quarter
2015 |
$ |
411 |
|
|
$ |
1,482 |
|
|
2.55 |
% |
|
0.38 |
% |
|
0.88 |
% |
Third quarter 2015 |
826 |
|
|
577 |
|
|
2.68 |
% |
|
0.37 |
% |
|
0.97 |
% |
Second quarter 2015 |
282 |
|
|
(381 |
) |
|
2.71 |
% |
|
0.59 |
% |
|
0.98 |
% |
First quarter 2015 |
765 |
|
|
662 |
|
|
2.77 |
% |
|
0.71 |
% |
|
1.07 |
% |
Fourth quarter 2014 |
191 |
|
|
1,070 |
|
|
2.89 |
% |
|
0.58 |
% |
|
1.08 |
% |
Third quarter 2014 |
360 |
|
|
364 |
|
|
2.93 |
% |
|
0.39 |
% |
|
1.21 |
% |
Second quarter 2014 |
239 |
|
|
332 |
|
|
3.11 |
% |
|
0.44 |
% |
|
1.30 |
% |
First quarter 2014 |
1,122 |
|
|
744 |
|
|
3.20 |
% |
|
1.05 |
% |
|
1.37 |
% |
Net charge-offs of loans for the current quarter
were $1.5 million compared to net charge-offs of $577 thousand for
the prior quarter and net charge-offs of $1.1 million from the same
quarter last year. The current quarter provision for loan
losses of $411 thousand decreased $415 thousand from the prior
quarter and increased $220 thousand from 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 |
|
Dec 31, |
|
Sep 30, |
|
Dec 31, |
|
Sep 30, |
|
Dec 31, |
(Dollars in
thousands) |
2015 |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Non-interest bearing
deposits |
$ |
1,918,310 |
|
|
1,893,723 |
|
|
1,632,403 |
|
|
24,587 |
|
|
285,907 |
|
Interest bearing
deposits |
5,026,698 |
|
|
4,779,456 |
|
|
4,712,809 |
|
|
247,242 |
|
|
313,889 |
|
Repurchase agreements |
423,414 |
|
|
441,041 |
|
|
397,107 |
|
|
(17,627 |
) |
|
26,307 |
|
Federal Home Loan Bank
advances |
394,131 |
|
|
329,299 |
|
|
296,944 |
|
|
64,832 |
|
|
97,187 |
|
Other borrowed funds |
6,602 |
|
|
6,619 |
|
|
7,311 |
|
|
(17 |
) |
|
(709 |
) |
Subordinated
debentures |
125,848 |
|
|
125,812 |
|
|
125,705 |
|
|
36 |
|
|
143 |
|
Other liabilities |
117,579 |
|
|
113,541 |
|
|
106,181 |
|
|
4,038 |
|
|
11,398 |
|
Total liabilities |
$ |
8,012,582 |
|
|
7,689,491 |
|
|
7,278,460 |
|
|
323,091 |
|
|
734,122 |
|
Excluding the Cañon acquisition, non-interest
bearing deposits of $1.918 billion at December 31, 2015, decreased
$64 million, or 3 percent, from the prior quarter which was
primarily from seasonality and timing of deposits of large deposit
customers. Excluding the CB and Cañon acquisitions,
non-interest bearing deposits increased $155 million, or 10
percent, from December 31, 2014. Interest bearing deposits of
$5.027 billion at December 31, 2015 included $230 million of
wholesale deposits (i.e., brokered deposits classified as NOW,
money market deposits and certificate accounts). Excluding
the increase of $39.9 million in wholesale deposits and the Cañon
acquisition, interest bearing deposits at December 31, 2015
increased $59.1 million, or 1 percent, during the current
quarter. Excluding the decrease of $19.5 million in wholesale
deposits and the CB and Cañon acquisitions, core interest bearing
deposits at December 31, 2015 increased $80 million, or 2 percent,
from December 31, 2014.
Securities sold under agreements to repurchase
(“repurchase agreements”) of $423 million at December 31, 2015
decreased $17.6 million, or 4 percent, from the prior quarter and
was primarily the result of timing of deposits in existing
repurchase agreements. Federal Home Loan Bank (“FHLB”)
advances of $394 million at December 31, 2015 increased $64.8
million, or 20 percent, for the current quarter due to seasonal
reduction in deposit balances and increased $97.2 million, or 33
percent, since December 31, 2014 due to deposit fluctuations and
the Company taking advantage of attractive term borrowings that
were available from FHLB of Seattle prior to its merger with FHLB
of Des Moines during the second quarter of 2015.
Stockholders’ Equity Summary
|
|
|
|
|
|
|
|
|
|
$ Change from |
|
|
Dec 31, |
|
Sep 30, |
|
Dec 31, |
|
Sep 30, |
|
Dec
31, |
|
(Dollars in thousands,
except per share data) |
|
2015 |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
Common equity |
$ |
1,074,661 |
|
|
1,066,801 |
|
|
1,010,303 |
|
|
7,860 |
|
|
64,358 |
|
Accumulated other
comprehensive income |
|
1,989 |
|
|
8,007 |
|
|
17,744 |
|
|
(6,018 |
) |
|
(15,755 |
) |
Total stockholders’ equity |
|
1,076,650 |
|
|
1,074,808 |
|
|
1,028,047 |
|
|
1,842 |
|
|
48,603 |
|
Goodwill and core deposit
intangible, net |
|
(155,193 |
) |
|
(141,624 |
) |
|
(140,606 |
) |
|
(13,569 |
) |
|
(14,587 |
) |
Tangible stockholders’ equity |
$ |
921,457 |
|
|
933,184 |
|
|
887,441 |
|
|
(11,727 |
) |
|
34,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity to
total assets |
|
11.85 |
% |
|
12.26 |
% |
|
12.38 |
% |
|
|
|
|
|
|
Tangible stockholders’
equity to total tangible assets |
|
10.31 |
% |
|
10.82 |
% |
|
10.87 |
% |
|
|
|
|
|
|
Book value per common
share |
$ |
14.15 |
|
|
14.23 |
|
|
13.70 |
|
|
(0.08 |
) |
|
0.45 |
|
Tangible book value per
common share |
$ |
12.11 |
|
|
12.35 |
|
|
11.83 |
|
|
(0.24 |
) |
|
0.28 |
|
Market price per share at
end of period |
$ |
26.53 |
|
|
26.39 |
|
|
27.77 |
|
|
0.14 |
|
|
(1.24 |
) |
Tangible stockholders’ equity of $921 million at December 31,
2015 decreased $11.7 million, or 1 percent, from the prior quarter
primarily from a decrease in accumulated other comprehensive income
and an increase in goodwill and intangibles from the Cañon
acquisition, both of which were partially offset by $15.2 million
of Company stock issued in connection with the Cañon
acquisition. Tangible stockholders’ equity increased $34.0
million, or 4 percent, from a year ago, the result of earnings
retention and Company stock issued in connection with the CB and
Cañon acquisitions, both of which offset the decrease in
accumulated other comprehensive income and increases in goodwill
and intangibles from acquisitions. At December 31, 2015, the
tangible book value per common share was $12.11 a decrease of $0.24
per share from $12.35 the prior quarter. The decrease
resulted from shares issued in the Cañon acquisition and the
decrease in accumulated other comprehensive income. Tangible
book value per common share for December 31, 2015, increased $0.28
per share from the prior year fourth quarter.
Cash DividendOn December 30, 2015, the Company’s
Board of Directors declared a special cash dividend of $0.30 per
share, which was the twelfth special dividend approved by the
Company. The dividend was payable January 21, 2016 to
shareholders of record on January 12, 2016. On November 24,
2015, the Company’s Board of Directors declared a regular quarterly
cash dividend of $0.19 per share. The dividend was payable
December 17, 2015 to shareholders of record on December 8,
2015. 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, 2015 |
Compared to September 30, 2015,
June 30, 2015, March 31, 2015 and December 31,
2014 |
|
Income
Summary |
|
|
|
Three Months ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(Dollars in
thousands) |
2015 |
|
2015 |
|
2015 |
|
2015 |
|
2014 |
Net interest income |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
83,211 |
|
|
80,367 |
|
|
78,617 |
|
|
77,486 |
|
|
76,179 |
|
Interest expense |
7,215 |
|
|
7,309 |
|
|
7,369 |
|
|
7,382 |
|
|
7,368 |
|
Total net interest income |
75,996 |
|
|
73,058 |
|
|
71,248 |
|
|
70,104 |
|
|
68,811 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
Service charges, loan fees, and
other fees |
15,966 |
|
|
16,030 |
|
|
15,445 |
|
|
14,156 |
|
|
15,129 |
|
Gain on sale of loans |
6,033 |
|
|
7,326 |
|
|
7,600 |
|
|
5,430 |
|
|
5,424 |
|
Gain (loss) on sale of
investments |
143 |
|
|
(31 |
) |
|
(98 |
) |
|
5 |
|
|
(28 |
) |
Other income |
2,325 |
|
|
2,474 |
|
|
2,855 |
|
|
3,102 |
|
|
3,453 |
|
Total non-interest income |
24,467 |
|
|
25,799 |
|
|
25,802 |
|
|
22,693 |
|
|
23,978 |
|
|
$ |
100,463 |
|
|
98,857 |
|
|
97,050 |
|
|
92,797 |
|
|
92,789 |
|
Net interest margin
(tax-equivalent) |
4.02 |
% |
|
3.96 |
% |
|
3.98 |
% |
|
4.03 |
% |
|
3.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ Change from |
|
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(Dollars in
thousands) |
|
|
2015 |
|
2015 |
|
2015 |
|
2014 |
Net interest income |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
$ |
2,844 |
|
|
4,594 |
|
|
5,725 |
|
|
7,032 |
|
Interest expense |
|
|
(94 |
) |
|
(154 |
) |
|
(167 |
) |
|
(153 |
) |
Total net interest income |
|
|
2,938 |
|
|
4,748 |
|
|
5,892 |
|
|
7,185 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges, loan fees, and
other fees |
|
|
(64 |
) |
|
521 |
|
|
1,810 |
|
|
837 |
|
Gain on sale of loans |
|
|
(1,293 |
) |
|
(1,567 |
) |
|
603 |
|
|
609 |
|
Gain (loss) on sale of
investments |
|
|
174 |
|
|
241 |
|
|
138 |
|
|
171 |
|
Other income |
|
|
(149 |
) |
|
(530 |
) |
|
(777 |
) |
|
(1,128 |
) |
Total non-interest income |
|
|
(1,332 |
) |
|
(1,335 |
) |
|
1,774 |
|
|
489 |
|
|
|
|
$ |
1,606 |
|
|
3,413 |
|
|
7,666 |
|
|
7,674 |
|
Net Interest IncomeIn the current quarter,
interest income of $83.2 million increased $2.8 million, or 4
percent from the prior quarter and was driven primarily by
increases in interest income on investment securities, residential
real estate loans and commercial loans. Interest income
during the current quarter increased $7.0 million, or 9 percent,
over the prior year fourth quarter and was principally due to
higher interest income on commercial loans which increased $5.2
million, or 14 percent, as a result of an increased volume and
yield on commercial loans. Interest income of $23.7 million
on investment securities increased $1.3 million, or 6 percent, over
the prior quarter and increased $1.7 million, or 8 percent, over
the prior year fourth quarter with both increases the result of
higher volume and yield on the investment portfolio.
An interest rate swap with a notional amount of
$100 million and a three and a half year deferred start began
its accrual period in December of 2015 with a fixed interest
rate of 2.498 percent. The interest rate swap expense will be
offset by the maturity of a $75 million term FHLB borrowing in
December with a 3.48 percent rate and was replaced with lower cost
funding. The Company’s total accruing notional amount of
interest rate swaps at year end was $260 million. The current
quarter interest expense of $7.2 million decreased $94 thousand, or
1 percent, from the prior quarter. The current quarter
interest expense decreased $153 thousand from the prior year fourth
quarter. The total cost of funding (including non-interest
bearing deposits) for the current quarter was 37 basis points
compared to 39 basis points for the prior quarter and 42 basis
points in 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 4.02 percent compared to 3.96 percent in the
prior quarter. The 6 basis points increase in the current quarter
net interest margin was primarily driven by a 4 basis points
increase in the yield on the investment portfolio. Included
in the current quarter net interest margin was 2 basis points
related to the recovery of interest on loans previously placed on
non-accrual compared to 4 basis points in the prior quarter.
The Company’s current quarter net interest margin increased
10 basis points from the prior year fourth quarter net interest
margin of 3.92 percent. The increase in the net interest
margin from the prior year fourth quarter was the result of a 5
basis points reduction in cost of funding, increased yield on
investments securities, and increased volume of higher yielding
commercial loans. “Maintaining the stable net interest margin
during the challenging interest rate environment of the current
quarter and year reflects the Bank divisions’ commitment to pricing
loans at higher yields where possible and growing a lower cost
deposit base, especially non-interest bearing deposits,” said Ron
Copher, Chief Financial Officer. “The Bank’s non-interest
bearing deposit base will serve the Bank well across higher
interest rate environments.”
Non-interest IncomeNon-interest income for the
current quarter totaled $24.5 million, a decrease of $1.3 million,
or 5 percent, from the prior quarter and an increase of $489
thousand, or 2 percent, over the same quarter last year.
Service fee income of $16.0 million, increased $837 thousand, or 6
percent, from the prior year fourth quarter driven by the increased
number of deposit accounts. The Company generated $6.0
million on the sale of residential loans in the current quarter a
decrease of $1.3 million, or 18 percent, from the prior quarter as
a result of seasonal fluctuations. Gain on sale of
residential loans for the current quarter increased $609 thousand,
or 11 percent, from the prior year fourth quarter as a result of an
increase in mortgage purchase activity. Other non-interest
income for the current quarter decreased $1.1 million, or 33
percent, over the prior year fourth quarter primarily due to
insurance proceeds recognized in the prior year fourth quarter from
a bank owned life insurance policy. Included in other income
was operating revenue of $28 thousand from OREO and a gain of $211
thousand from the sale of OREO, a combined total of $239 thousand
for the current quarter compared to $129 thousand for the prior
quarter and $442 thousand for the prior year fourth quarter.
Non-interest Expense Summary
|
Three Months ended |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(Dollars in
thousands) |
2015 |
|
2015 |
|
2015 |
|
2015 |
|
2014 |
Compensation and
employee benefits |
$ |
35,902 |
|
|
33,534 |
|
|
32,729 |
|
|
32,244 |
|
|
30,807 |
|
Occupancy and
equipment |
8,090 |
|
|
7,887 |
|
|
7,810 |
|
|
7,362 |
|
|
7,191 |
|
Advertising and
promotions |
2,035 |
|
|
2,459 |
|
|
2,240 |
|
|
1,927 |
|
|
2,046 |
|
Data processing |
1,733 |
|
|
1,258 |
|
|
1,593 |
|
|
1,249 |
|
|
1,815 |
|
Other real estate
owned |
511 |
|
|
1,047 |
|
|
1,377 |
|
|
758 |
|
|
893 |
|
Regulatory assessments and
insurance |
1,494 |
|
|
1,478 |
|
|
1,006 |
|
|
1,305 |
|
|
1,009 |
|
Core deposit intangibles
amortization |
758 |
|
|
720 |
|
|
755 |
|
|
731 |
|
|
716 |
|
Other expenses |
11,680 |
|
|
10,729 |
|
|
12,435 |
|
|
9,921 |
|
|
11,221 |
|
Total non-interest expense |
$ |
62,203 |
|
|
59,112 |
|
|
59,945 |
|
|
55,497 |
|
|
55,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ Change from |
|
|
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
|
Dec 31, |
(Dollars in
thousands) |
|
|
2015 |
|
2015 |
|
2015 |
|
2014 |
Compensation and
employee benefits |
|
|
$ |
2,368 |
|
|
3,173 |
|
|
3,658 |
|
|
5,095 |
|
Occupancy and
equipment |
|
|
203 |
|
|
280 |
|
|
728 |
|
|
899 |
|
Advertising and
promotions |
|
|
(424 |
) |
|
(205 |
) |
|
108 |
|
|
(11 |
) |
Data processing |
|
|
475 |
|
|
140 |
|
|
484 |
|
|
(82 |
) |
Other real estate
owned |
|
|
(536 |
) |
|
(866 |
) |
|
(247 |
) |
|
(382 |
) |
Regulatory assessments and
insurance |
|
|
16 |
|
|
488 |
|
|
189 |
|
|
485 |
|
Core deposit intangibles
amortization |
|
|
38 |
|
|
3 |
|
|
27 |
|
|
42 |
|
Other expense |
|
|
951 |
|
|
(755 |
) |
|
1,759 |
|
|
459 |
|
Total non-interest expense |
|
|
$ |
3,091 |
|
|
2,258 |
|
|
6,706 |
|
|
6,505 |
|
Compensation and employee benefits for the
current quarter increased by $2.4 million, or 7 percent, from the
prior quarter as a result of an increased number of employees from
the Cañon acquisition and benefit accruals from higher performance.
Compensation and employee benefits for the current quarter
increased by $5.1 million, or 17 percent, from the prior year
fourth quarter due to the increased number of employees from the CB
and Cañon acquisitions, annual salary increases, and an increase in
the number of employees. Current quarter occupancy and
equipment expense increased $899 thousand, or 13 percent, from the
prior year fourth quarter as a result of added costs associated
with the CB and Cañon acquisitions and equipment expense related to
additional information technology infrastructure. The current
quarter advertising expense decreased $424 thousand, or 17 percent,
from the prior quarter as a result of timing of advertising
expense. The current quarter data processing expense increased $475
thousand, or 38 percent, from the prior quarter primarily from
outsourced data processing expense from the Cañon
acquisition. The current quarter OREO expense of $511
thousand was a decrease of $536 thousand from the prior quarter and
included $358 thousand of operating expense, $54 thousand of fair
value write-downs, and $99 thousand of loss from the sales of
OREO. Current quarter other expenses of $11.7 million
increased by $951 thousand, or 9 percent, from the prior quarter
primarily from professional expenses associated with the Cañon
acquisition and expenses connected with equity investments in New
Market Tax Credits (“NMTC”) projects. The NMTC expenses were
more than offset by the tax benefits included in federal income tax
expense. Federal and state income tax expense of $8.3 million
in the current quarter decreased $964 thousand from the prior
quarter and was primarily the result of the increase in NMTC
credits recognized during the current quarter.
Efficiency RatioThe efficiency ratio for the
current quarter was 56.52 percent compared to 54.32 percent in the
prior quarter. The 2.20 percent increase in efficiency
ratio was from increased compensation expense from the Cañon
acquisition and increased benefit accruals combined with seasonal
decreases in gain on sale of residential loans, both of which were
higher than the increased interest income the Company experienced
during the current quarter. The current quarter efficiency
ratio of 56.52 percent compares to 55.11 percent in the prior year
fourth quarter. The 1.41 percent increase in efficiency ratio
resulted primarily from increased compensation expense from recent
acquisitions and increased salary and benefits which outpaced the
increases to net interest income and non-interest income for the
same period.
Operating Results for Year ended December 31,
2015 |
Compared to December 31,
2014 |
|
|
|
|
|
|
Income Summary |
|
|
|
|
|
|
Year ended |
|
$ Change |
|
% Change |
(Dollars in
thousands) |
Dec 31, 2015 |
|
Dec 31, 2014 |
|
Net interest
income |
|
|
|
|
|
|
|
Interest income |
$ |
319,681 |
|
|
$ |
299,919 |
|
|
$ |
19,762 |
|
|
7 |
% |
Interest expense |
29,275 |
|
|
26,966 |
|
|
2,309 |
|
|
9 |
% |
Total net interest income |
290,406 |
|
|
272,953 |
|
|
17,453 |
|
|
6 |
% |
Non-interest
income |
|
|
|
|
|
|
|
|
Service charges, loan fees, and
other fees |
61,597 |
|
|
58,785 |
|
|
2,812 |
|
|
5 |
% |
Gain on sale of loans |
26,389 |
|
|
19,797 |
|
|
6,592 |
|
|
33 |
% |
Gain (loss) on sale of
investments |
19 |
|
|
(188 |
) |
|
207 |
|
|
(110 |
)% |
Other income |
10,756 |
|
|
11,908 |
|
|
(1,152 |
) |
|
(10 |
)% |
Total non-interest income |
98,761 |
|
|
90,302 |
|
|
8,459 |
|
|
9 |
% |
|
$ |
389,167 |
|
|
$ |
363,255 |
|
|
$ |
25,912 |
|
|
7 |
% |
Net interest margin
(tax-equivalent) |
4.00 |
% |
|
3.98 |
% |
|
|
|
|
Net Interest IncomeInterest income for 2015
increased $19.8 million, or 7 percent, from the prior year and was
principally due to an increase in income from commercial
loans. Current year interest income of $165 million on
commercial loans increased $19.3 million, or 13 percent, from the
prior year and was primarily the result of an increased volume of
commercial loans. Current year interest income of $91.1
million on investment securities decreased $2.0 million, or 2
percent, over the same period last year, due to a decreased yield
on investment securities. On a tax-equivalent basis,
the current year interest income of $118.8 million on investment
securities increased $2.8 million, or 2 percent, over the prior
year.
Interest expense for 2015 increased $2.3
million, or 9 percent, from the prior year and was primarily due to
the interest expense associated with the interest rate swaps.
Excluding the impact of the interest rate swaps, interest expense
for 2015 decreased by $1.7 million, or 7 percent, from the prior
year. The total funding cost (including non-interest bearing
deposits) for the current year was 40 basis points compared to 39
basis points for the prior year.
The net interest margin as a percentage of
earning assets, on a tax-equivalent basis, for the current year was
4.00 percent, an increase of 2 basis point from the prior year net
interest margin of 3.98 percent. The 2 basis points increase
was attributable to a combination of items including a shift in
earning assets to the higher yielding loan portfolio and an
increased yield on the investment securities portfolio. In
addition, the continued decreased yield on core deposits offset the
increased interest expense from the interest rate swaps.
Excluding the effects of the interest rate swaps, the current year
cost of funds was 33 basis points compared to 38 basis points in
the prior year.
Non-interest IncomeNon-interest income of $98.8
million for the current year increased $8.5 million, or 9 percent,
over the same period last year. Service charges and other
fees of $61.6 million for the current year increased $2.8 million,
or 5 percent, from last year and was driven by the increased number
of deposit accounts and higher usage of deposit services from
legacy customers. The gain of $26.4 million on the sale of
residential loans for the current year increased $6.6 million, or
33 percent, from the prior year which was attributable to an
increase in mortgage refinancing and purchase activity. Other
income of $10.8 million for the current year decreased $1.2
million, or 10 percent, over the prior year due to a decrease in
gain on sale of OREO and insurance proceeds recognized in the prior
year fourth quarter from a bank owned life insurance policy.
Included in other income was operating revenue of $123 thousand
from OREO and gains of $986 thousand from the sales of OREO, which
totaled $1.1 million for 2015 compared to $2.3 million for the same
period in the prior year.
Non-interest Expense Summary
|
Year ended |
|
$ Change |
|
% Change |
(Dollars in
thousands) |
Dec 31, 2015 |
|
Dec 31, 2014 |
|
Compensation and
employee benefits |
$ |
134,409 |
|
|
$ |
118,571 |
|
|
$ |
15,838 |
|
|
13 |
% |
Occupancy and
equipment |
31,149 |
|
|
27,498 |
|
|
3,651 |
|
|
13 |
% |
Advertising and
promotions |
8,661 |
|
|
7,912 |
|
|
749 |
|
|
9 |
% |
Data processing |
5,833 |
|
|
6,607 |
|
|
(774 |
) |
|
(12 |
)% |
Other real estate
owned |
3,693 |
|
|
2,568 |
|
|
1,125 |
|
|
44 |
% |
Regulatory assessments and
insurance |
5,283 |
|
|
5,064 |
|
|
219 |
|
|
4 |
% |
Core deposit intangible
amortization |
2,964 |
|
|
2,811 |
|
|
153 |
|
|
5 |
% |
Other expenses |
44,765 |
|
|
41,648 |
|
|
3,117 |
|
|
7 |
% |
Total non-interest expense |
$ |
236,757 |
|
|
$ |
212,679 |
|
|
$ |
24,078 |
|
|
11 |
% |
Compensation and employee benefits for the
current year increased $15.8 million, or 13 percent, from last year
due to the increased number of employees primarily from the
acquired banks, additional benefit costs and annual salary
increases. Occupancy and equipment expense increased $3.7
million, or 13 percent, as a result of increased costs associated
with acquisitions and equipment expense related to additional
information technology infrastructure. Outsourced data processing
expense decreased $774 thousand, or 12 percent, from the prior year
as a result of a decrease in conversion related expenses and
outsourced data processing expense from an acquired bank.
OREO expense of $3.7 million in the current year increased $1.1
million, or 44 percent, from the prior year. OREO expenses
continue to fluctuate based on the level of activity in various
quarters. OREO expense for 2015 included $1.8 million of
operating expenses, $1.6 million of fair value write-downs, and
$349 thousand of loss from the sales of OREO. OREO expense
for 2014 included $1.4 million of operating expenses, $691 thousand
of fair value write-downs, and $442 thousand of loss from the sales
of OREO. Other expense of $44.8 million for the current year
increased by $3.1 million, or 7 percent, from the prior year
primarily due to increases in conversion and acquisition related
expenses.
Provision for Loan LossesThe provision for loan
losses was $2.3 million for the current year, an increase of $372
thousand, or 19 percent, from the same period in the prior
year. Net charged-off loans during 2015 were $2.3 million, a
decrease of $170 thousand from 2014.
Efficiency RatioThe efficiency ratio was 55.40
percent for 2015 compared to 54.31 percent for 2014. The
increase in the efficiency ratio resulted primarily from
compensation expense from increased acquired bank employees and
salary increases outpacing the increase in net interest income
primarily from commercial loans and non-interest income principally
from the increase in gain on sale of loans.
About Glacier Bancorp, Inc.Glacier Bancorp, Inc.
is a regional bank holding company providing commercial banking
services in 88 communities in Montana, Idaho, Utah, Washington,
Wyoming and Colorado. Glacier Bancorp, Inc. is headquartered
in Kalispell, Montana, and is the parent company for Glacier
Bank, Kalispell and Bank divisions First Security Bank of Missoula;
Valley Bank of Helena; Big Sky Western Bank, Bozeman; Western
Security Bank, Billings; and First Bank of Montana, Lewistown, all
operating in Montana; as well as Mountain West Bank, Coeur d’Alene
operating in Idaho, Utah and Washington; Citizens Community
Bank, Pocatello, operating in Idaho; 1st Bank, Evanston, operating
in Wyoming and Utah; First Bank of Wyoming, Powell and First
State Bank, Wheatland, each operating in Wyoming; North
Cascades Bank, Chelan, operating in Washington; and Bank of the San
Juans, Durango, operating in Colorado.
Forward-Looking StatementsThis 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 market interest rates, which could adversely affect
the Company’s net interest income and profitability;
- legislative or regulatory changes that adversely affect the
Company’s business, ability to complete pending or prospective
future acquisitions, limit certain sources of revenue, or increase
cost of operations;
- costs or difficulties related to the completion and integration
of acquisitions;
- the goodwill the Company has recorded in connection with
acquisitions could become impaired, which may have an adverse
impact on earnings and capital;
- reduced demand for banking products and services;
- the risks presented by public stock market volatility, which
could adversely affect the market price of the Company’s common
stock and the ability to raise additional capital or grow the
Company through acquisitions;
- 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;
- potential interruption or breach in security of the Company’s
systems; and
- the Company’s success in managing risks involved in the
foregoing.
The Company does not undertake any obligation to
publicly correct or update any forward-looking statement if it
later becomes aware that actual results are likely to differ
materially from those expressed in such forward-looking
statement.
Glacier Bancorp, Inc. |
Unaudited Condensed Consolidated Statements of
Financial Condition |
|
|
December 31, |
|
September 30, |
|
December 31, |
(Dollars in thousands,
except per share data) |
2015 |
|
2015 |
|
2014 |
Assets |
|
|
|
|
|
Cash on hand and in banks |
$ |
117,137 |
|
|
104,363 |
|
|
122,834 |
|
Federal funds sold |
6,080 |
|
|
2,210 |
|
|
1,025 |
|
Interest bearing cash deposits |
70,036 |
|
|
136,262 |
|
|
318,550 |
|
Cash and cash equivalents |
193,253 |
|
|
242,835 |
|
|
442,409 |
|
Investment securities,
available-for-sale |
2,610,760 |
|
|
2,530,994 |
|
|
2,387,428 |
|
Investment securities,
held-to-maturity |
702,072 |
|
|
651,822 |
|
|
520,997 |
|
Total investment securities |
3,312,832 |
|
|
3,182,816 |
|
|
2,908,425 |
|
Loans held for sale |
56,514 |
|
|
40,456 |
|
|
46,726 |
|
Loans receivable |
5,078,681 |
|
|
4,876,419 |
|
|
4,488,095 |
|
Allowance for loan and lease
losses |
(129,697 |
) |
|
(130,768 |
) |
|
(129,753 |
) |
Loans receivable, net |
4,948,984 |
|
|
4,745,651 |
|
|
4,358,342 |
|
Premises and equipment, net |
194,030 |
|
|
185,864 |
|
|
179,175 |
|
Other real estate owned |
26,815 |
|
|
26,609 |
|
|
27,804 |
|
Accrued interest receivable |
44,524 |
|
|
46,786 |
|
|
40,587 |
|
Deferred tax asset |
58,475 |
|
|
55,095 |
|
|
41,737 |
|
Core deposit intangible, net |
14,555 |
|
|
10,781 |
|
|
10,900 |
|
Goodwill |
140,638 |
|
|
130,843 |
|
|
129,706 |
|
Non-marketable equity
securities |
27,495 |
|
|
24,905 |
|
|
52,868 |
|
Other assets |
71,117 |
|
|
71,658 |
|
|
67,828 |
|
Total assets |
$ |
9,089,232 |
|
|
8,764,299 |
|
|
8,306,507 |
|
Liabilities |
|
|
|
|
|
Non-interest bearing deposits |
$ |
1,918,310 |
|
|
1,893,723 |
|
|
1,632,403 |
|
Interest bearing deposits |
5,026,698 |
|
|
4,779,456 |
|
|
4,712,809 |
|
Securities sold under agreements to
repurchase |
423,414 |
|
|
441,041 |
|
|
397,107 |
|
FHLB advances |
394,131 |
|
|
329,299 |
|
|
296,944 |
|
Other borrowed funds |
6,602 |
|
|
6,619 |
|
|
7,311 |
|
Subordinated debentures |
125,848 |
|
|
125,812 |
|
|
125,705 |
|
Accrued interest payable |
3,517 |
|
|
3,641 |
|
|
4,155 |
|
Other liabilities |
114,062 |
|
|
109,900 |
|
|
102,026 |
|
Total liabilities |
8,012,582 |
|
|
7,689,491 |
|
|
7,278,460 |
|
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 |
761 |
|
|
755 |
|
|
750 |
|
Paid-in capital |
736,368 |
|
|
720,639 |
|
|
708,356 |
|
Retained earnings - substantially
restricted |
337,532 |
|
|
345,407 |
|
|
301,197 |
|
Accumulated other comprehensive
income |
1,989 |
|
|
8,007 |
|
|
17,744 |
|
Total stockholders’ equity |
1,076,650 |
|
|
1,074,808 |
|
|
1,028,047 |
|
Total liabilities and stockholders’
equity |
$ |
9,089,232 |
|
|
8,764,299 |
|
|
8,306,507 |
|
Number of common stock shares
issued and outstanding |
76,086,288 |
|
|
75,532,082 |
|
|
75,026,092 |
|
Glacier Bancorp, Inc. |
Unaudited Condensed Consolidated Statements of
Operations |
|
|
Three Months ended |
|
Year ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(Dollars in thousands,
except per share data) |
2015 |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Interest
Income |
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
23,731 |
|
|
22,437 |
|
|
22,050 |
|
|
91,086 |
|
|
93,052 |
|
Residential real estate loans |
8,572 |
|
|
7,878 |
|
|
8,464 |
|
|
32,153 |
|
|
30,721 |
|
Commercial loans |
43,109 |
|
|
42,137 |
|
|
37,935 |
|
|
164,966 |
|
|
145,631 |
|
Consumer and other loans |
7,799 |
|
|
7,915 |
|
|
7,730 |
|
|
31,476 |
|
|
30,515 |
|
Total interest income |
83,211 |
|
|
80,367 |
|
|
76,179 |
|
|
319,681 |
|
|
299,919 |
|
Interest
Expense |
|
|
|
|
|
|
|
|
|
Deposits |
3,932 |
|
|
3,947 |
|
|
4,018 |
|
|
16,138 |
|
|
13,195 |
|
Securities sold under agreements to
repurchase |
287 |
|
|
261 |
|
|
238 |
|
|
1,021 |
|
|
865 |
|
Federal Home Loan Bank
advances |
2,156 |
|
|
2,273 |
|
|
2,253 |
|
|
8,841 |
|
|
9,570 |
|
Federal funds purchased and other
borrowed funds |
18 |
|
|
21 |
|
|
64 |
|
|
81 |
|
|
199 |
|
Subordinated debentures |
822 |
|
|
807 |
|
|
795 |
|
|
3,194 |
|
|
3,137 |
|
Total interest expense |
7,215 |
|
|
7,309 |
|
|
7,368 |
|
|
29,275 |
|
|
26,966 |
|
Net Interest
Income |
75,996 |
|
|
73,058 |
|
|
68,811 |
|
|
290,406 |
|
|
272,953 |
|
Provision for loan losses |
411 |
|
|
826 |
|
|
191 |
|
|
2,284 |
|
|
1,912 |
|
Net interest income after provision
for loan losses |
75,585 |
|
|
72,232 |
|
|
68,620 |
|
|
288,122 |
|
|
271,041 |
|
Non-Interest
Income |
|
|
|
|
|
|
|
|
|
Service charges and other fees |
15,044 |
|
|
14,975 |
|
|
14,004 |
|
|
57,321 |
|
|
54,089 |
|
Miscellaneous loan fees and
charges |
922 |
|
|
1,055 |
|
|
1,125 |
|
|
4,276 |
|
|
4,696 |
|
Gain on sale of loans |
6,033 |
|
|
7,326 |
|
|
5,424 |
|
|
26,389 |
|
|
19,797 |
|
Gain (loss) on sale of
investments |
143 |
|
|
(31 |
) |
|
(28 |
) |
|
19 |
|
|
(188 |
) |
Other income |
2,325 |
|
|
2,474 |
|
|
3,453 |
|
|
10,756 |
|
|
11,908 |
|
Total non-interest income |
24,467 |
|
|
25,799 |
|
|
23,978 |
|
|
98,761 |
|
|
90,302 |
|
Non-Interest
Expense |
|
|
|
|
|
|
|
|
|
Compensation and employee
benefits |
35,902 |
|
|
33,534 |
|
|
30,807 |
|
|
134,409 |
|
|
118,571 |
|
Occupancy and equipment |
8,090 |
|
|
7,887 |
|
|
7,191 |
|
|
31,149 |
|
|
27,498 |
|
Advertising and promotions |
2,035 |
|
|
2,459 |
|
|
2,046 |
|
|
8,661 |
|
|
7,912 |
|
Data processing |
1,733 |
|
|
1,258 |
|
|
1,815 |
|
|
5,833 |
|
|
6,607 |
|
Other real estate owned |
511 |
|
|
1,047 |
|
|
893 |
|
|
3,693 |
|
|
2,568 |
|
Regulatory assessments and
insurance |
1,494 |
|
|
1,478 |
|
|
1,009 |
|
|
5,283 |
|
|
5,064 |
|
Core deposit intangibles
amortization |
758 |
|
|
720 |
|
|
716 |
|
|
2,964 |
|
|
2,811 |
|
Other expenses |
11,680 |
|
|
10,729 |
|
|
11,221 |
|
|
44,765 |
|
|
41,648 |
|
Total non-interest expense |
62,203 |
|
|
59,112 |
|
|
55,698 |
|
|
236,757 |
|
|
212,679 |
|
Income Before
Income Taxes |
37,849 |
|
|
38,919 |
|
|
36,900 |
|
|
150,126 |
|
|
148,664 |
|
Federal and state income tax
expense |
8,341 |
|
|
9,305 |
|
|
8,846 |
|
|
33,999 |
|
|
35,909 |
|
Net
Income |
$ |
29,508 |
|
|
29,614 |
|
|
28,054 |
|
|
116,127 |
|
|
112,755 |
|
Basic earnings per
share |
$ |
0.39 |
|
|
0.39 |
|
|
0.37 |
|
|
1.54 |
|
|
1.51 |
|
Diluted earnings per
share |
$ |
0.39 |
|
|
0.39 |
|
|
0.37 |
|
|
1.54 |
|
|
1.51 |
|
Dividends declared per
share |
$ |
0.49 |
|
|
0.19 |
|
|
0.48 |
|
|
1.05 |
|
|
0.98 |
|
Average outstanding shares
- basic |
75,893,521 |
|
|
75,531,923 |
|
|
75,025,201 |
|
|
75,542,455 |
|
|
74,641,957 |
|
Average outstanding shares
- diluted |
75,968,169 |
|
|
75,586,453 |
|
|
75,082,566 |
|
|
75,595,581 |
|
|
74,687,315 |
|
Glacier Bancorp, Inc. |
Average Balance Sheet |
|
|
Three Months ended |
|
Year ended |
|
December 31, 2015 |
|
December 31, 2015 |
|
|
|
|
|
Average |
|
|
|
|
|
Average |
|
Average |
|
Interest & |
|
Yield/ |
|
Average |
|
Interest & |
|
Yield/ |
(Dollars in
thousands) |
Balance |
|
Dividends |
|
Rate |
|
Balance |
|
Dividends |
|
Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans |
$ |
728,346 |
|
|
$ |
8,572 |
|
|
4.71 |
% |
|
$ |
687,013 |
|
|
$ |
32,153 |
|
|
4.68 |
% |
Commercial loans 1 |
3,601,427 |
|
|
43,828 |
|
|
4.83 |
% |
|
3,459,470 |
|
|
167,587 |
|
|
4.84 |
% |
Consumer and other loans |
648,683 |
|
|
7,799 |
|
|
4.77 |
% |
|
631,512 |
|
|
31,476 |
|
|
4.98 |
% |
Total loans 2 |
4,978,456 |
|
|
60,199 |
|
|
4.80 |
% |
|
4,777,995 |
|
|
231,216 |
|
|
4.84 |
% |
Tax-exempt investment securities
3 |
1,361,905 |
|
|
20,173 |
|
|
5.92 |
% |
|
1,328,908 |
|
|
77,199 |
|
|
5.81 |
% |
Taxable investment securities
4 |
1,988,643 |
|
|
11,176 |
|
|
2.25 |
% |
|
1,918,283 |
|
|
41,648 |
|
|
2.17 |
% |
Total earning assets |
8,329,004 |
|
|
91,548 |
|
|
4.36 |
% |
|
8,025,186 |
|
|
350,063 |
|
|
4.36 |
% |
Goodwill and intangibles |
147,572 |
|
|
|
|
|
|
|
143,293 |
|
|
|
|
|
|
Non-earning assets |
400,730 |
|
|
|
|
|
|
|
389,126 |
|
|
|
|
|
|
Total assets |
$ |
8,877,306 |
|
|
|
|
|
|
|
$ |
8,557,605 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
$ |
1,918,399 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
1,756,888 |
|
|
$ |
— |
|
|
— |
% |
NOW accounts |
1,441,615 |
|
|
284 |
|
|
0.08 |
% |
|
1,371,340 |
|
|
1,074 |
|
|
0.08 |
% |
Savings accounts |
811,804 |
|
|
97 |
|
|
0.05 |
% |
|
758,776 |
|
|
360 |
|
|
0.05 |
% |
Money market deposit accounts |
1,372,881 |
|
|
522 |
|
|
0.15 |
% |
|
1,340,967 |
|
|
2,066 |
|
|
0.15 |
% |
Certificate accounts |
1,081,921 |
|
|
1,607 |
|
|
0.59 |
% |
|
1,131,210 |
|
|
6,891 |
|
|
0.61 |
% |
Wholesale deposits 5 |
201,695 |
|
|
1,422 |
|
|
2.80 |
% |
|
206,889 |
|
|
5,747 |
|
|
2.78 |
% |
FHLB advances |
332,910 |
|
|
2,156 |
|
|
2.53 |
% |
|
319,565 |
|
|
8,841 |
|
|
2.73 |
% |
Repurchase agreements and
other borrowed funds |
523,213 |
|
|
1,127 |
|
|
0.85 |
% |
|
509,431 |
|
|
4,296 |
|
|
0.84 |
% |
Total funding liabilities |
7,684,438 |
|
|
7,215 |
|
|
0.37 |
% |
|
7,395,066 |
|
|
29,275 |
|
|
0.40 |
% |
Other liabilities |
94,505 |
|
|
|
|
|
|
91,360 |
|
|
|
|
|
Total liabilities |
7,778,943 |
|
|
|
|
|
|
7,486,426 |
|
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
|
|
|
|
|
Common stock |
759 |
|
|
|
|
|
|
755 |
|
|
|
|
|
Paid-in capital |
730,927 |
|
|
|
|
|
|
720,827 |
|
|
|
|
|
Retained earnings |
358,860 |
|
|
|
|
|
|
336,998 |
|
|
|
|
|
Accumulated other comprehensive
income |
7,817 |
|
|
|
|
|
|
12,599 |
|
|
|
|
|
Total stockholders’ equity |
1,098,363 |
|
|
|
|
|
|
1,071,179 |
|
|
|
|
|
Total liabilities and stockholders’
equity |
$ |
8,877,306 |
|
|
|
|
|
|
$ |
8,557,605 |
|
|
|
|
|
Net interest income
(tax-equivalent) |
|
|
$ |
84,333 |
|
|
|
|
|
|
$ |
320,788 |
|
|
|
Net interest spread
(tax-equivalent) |
|
|
|
|
3.99 |
% |
|
|
|
|
|
3.96 |
% |
Net interest margin
(tax-equivalent) |
|
|
|
|
4.02 |
% |
|
|
|
|
|
4.00 |
% |
__________1 Includes tax
effect of $719 thousand and $2.6 million on tax-exempt municipal
loan and lease income for the three months and year ended
December 31, 2015.2 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 $7.3 million and $26.3 million on tax-exempt
investment security income for the three months and year ended
December 31, 2015.4 Includes tax effect of
$362 thousand and $1.4 million on federal income tax credits for
the three months and year ended December 31,
2015.5 Wholesale deposits include brokered
deposits classified as NOW, money market deposit and certificate
accounts.
Glacier Bancorp, Inc. |
Loan Portfolio by Regulatory
Classification |
|
|
|
|
|
Loans Receivable, by Loan Type |
|
% Change from |
|
Dec 31, |
|
Sep 30, |
|
Dec 31, |
|
Sep 30, |
|
Dec 31, |
(Dollars in
thousands) |
2015 |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Custom and owner
occupied construction |
$ |
75,094 |
|
|
$ |
64,951 |
|
|
$ |
56,689 |
|
|
16 |
% |
|
32 |
% |
Pre-sold and spec
construction |
50,288 |
|
|
46,921 |
|
|
47,406 |
|
|
7 |
% |
|
6 |
% |
Total residential
construction |
125,382 |
|
|
111,872 |
|
|
104,095 |
|
|
12 |
% |
|
20 |
% |
Land development |
62,356 |
|
|
83,756 |
|
|
82,829 |
|
|
(26 |
)% |
|
(25 |
)% |
Consumer land or lots |
97,270 |
|
|
98,490 |
|
|
101,818 |
|
|
(1 |
)% |
|
(4 |
)% |
Unimproved land |
73,844 |
|
|
74,439 |
|
|
86,116 |
|
|
(1 |
)% |
|
(14 |
)% |
Developed lots for
operative builders |
12,336 |
|
|
13,697 |
|
|
14,126 |
|
|
(10 |
)% |
|
(13 |
)% |
Commercial lots |
22,035 |
|
|
22,937 |
|
|
16,205 |
|
|
(4 |
)% |
|
36 |
% |
Other construction |
156,784 |
|
|
122,347 |
|
|
150,075 |
|
|
28 |
% |
|
4 |
% |
Total land, lot, and other
construction |
424,625 |
|
|
415,666 |
|
|
451,169 |
|
|
2 |
% |
|
(6 |
)% |
Owner occupied |
938,625 |
|
|
885,736 |
|
|
849,148 |
|
|
6 |
% |
|
11 |
% |
Non-owner occupied |
774,192 |
|
|
739,057 |
|
|
674,381 |
|
|
5 |
% |
|
15 |
% |
Total commercial
real estate |
1,712,817 |
|
|
1,624,793 |
|
|
1,523,529 |
|
|
5 |
% |
|
12 |
% |
Commercial and
industrial |
649,553 |
|
|
619,688 |
|
|
547,910 |
|
|
5 |
% |
|
19 |
% |
Agriculture |
367,339 |
|
|
386,523 |
|
|
310,785 |
|
|
(5 |
)% |
|
18 |
% |
1st lien |
856,193 |
|
|
801,705 |
|
|
775,785 |
|
|
7 |
% |
|
10 |
% |
Junior lien |
65,383 |
|
|
67,351 |
|
|
68,358 |
|
|
(3 |
)% |
|
(4 |
)% |
Total 1-4
family |
921,576 |
|
|
869,056 |
|
|
844,143 |
|
|
6 |
% |
|
9 |
% |
Multifamily
residential |
201,542 |
|
|
189,944 |
|
|
160,426 |
|
|
6 |
% |
|
26 |
% |
Home equity lines of
credit |
372,039 |
|
|
359,605 |
|
|
334,788 |
|
|
3 |
% |
|
11 |
% |
Other consumer |
150,469 |
|
|
154,095 |
|
|
133,773 |
|
|
(2 |
)% |
|
12 |
% |
Total
consumer |
522,508 |
|
|
513,700 |
|
|
468,561 |
|
|
2 |
% |
|
12 |
% |
Other |
209,853 |
|
|
185,633 |
|
|
124,203 |
|
|
13 |
% |
|
69 |
% |
Total loans receivable, including
loans held for sale |
5,135,195 |
|
|
4,916,875 |
|
|
4,534,821 |
|
|
4 |
% |
|
13 |
% |
Less loans held
for sale 1 |
(56,514 |
) |
|
(40,456 |
) |
|
(46,726 |
) |
|
40 |
% |
|
21 |
% |
Total loans receivable |
$ |
5,078,681 |
|
|
$ |
4,876,419 |
|
|
$ |
4,488,095 |
|
|
4 |
% |
|
13 |
% |
_______ |
1 Loans held for sale
are primarily 1st lien 1-4 family loans. |
Glacier Bancorp, Inc. |
Credit Quality Summary by Regulatory
Classification |
|
|
|
|
|
|
Accruing |
|
|
|
|
|
Non- |
|
Loans 90 Days |
|
Other |
|
|
|
Accrual |
|
or More |
|
Real Estate |
|
Non-performing Assets, by Loan Type |
|
Loans |
|
Past Due |
|
Owned |
|
Dec 31, |
|
Sep 30, |
|
Dec 31, |
|
Dec 31, |
Dec 31, |
Dec 31, |
(Dollars in
thousands) |
2015 |
|
2015 |
|
2014 |
|
2015 |
2015 |
2015 |
Custom and owner occupied
construction |
$ |
1,016 |
|
|
1,048 |
|
|
1,132 |
|
|
1,016 |
|
|
— |
|
|
— |
|
Pre-sold and spec
construction |
— |
|
|
— |
|
|
218 |
|
|
— |
|
|
— |
|
|
— |
|
Total residential
construction |
1,016 |
|
|
1,048 |
|
|
1,350 |
|
|
1,016 |
|
|
— |
|
|
— |
|
Land development |
17,582 |
|
|
17,719 |
|
|
20,842 |
|
|
6,791 |
|
|
— |
|
|
10,791 |
|
Consumer land or lots |
2,250 |
|
|
2,430 |
|
|
3,581 |
|
|
934 |
|
|
20 |
|
|
1,296 |
|
Unimproved land |
12,328 |
|
|
12,055 |
|
|
14,170 |
|
|
8,382 |
|
|
— |
|
|
3,946 |
|
Developed lots for
operative builders |
488 |
|
|
492 |
|
|
1,318 |
|
|
267 |
|
|
— |
|
|
221 |
|
Commercial lots |
1,521 |
|
|
1,631 |
|
|
2,660 |
|
|
241 |
|
|
— |
|
|
1,280 |
|
Other construction |
4,236 |
|
|
4,244 |
|
|
5,151 |
|
|
— |
|
|
— |
|
|
4,236 |
|
Total land, lot and other
construction |
38,405 |
|
|
38,571 |
|
|
47,722 |
|
|
16,615 |
|
|
20 |
|
|
21,770 |
|
Owner occupied |
10,952 |
|
|
12,719 |
|
|
13,574 |
|
|
8,794 |
|
|
— |
|
|
2,158 |
|
Non-owner occupied |
3,446 |
|
|
3,833 |
|
|
3,013 |
|
|
2,634 |
|
|
— |
|
|
812 |
|
Total commercial real
estate |
14,398 |
|
|
16,552 |
|
|
16,587 |
|
|
11,428 |
|
|
— |
|
|
2,970 |
|
Commercial and
industrial |
3,993 |
|
|
5,110 |
|
|
4,375 |
|
|
3,916 |
|
|
20 |
|
|
57 |
|
Agriculture |
3,281 |
|
|
3,114 |
|
|
3,074 |
|
|
2,666 |
|
|
167 |
|
|
448 |
|
1st lien |
10,691 |
|
|
11,953 |
|
|
9,580 |
|
|
9,264 |
|
|
64 |
|
|
1,363 |
|
Junior lien |
668 |
|
|
660 |
|
|
442 |
|
|
668 |
|
|
— |
|
|
— |
|
Total 1-4
family |
11,359 |
|
|
12,613 |
|
|
10,022 |
|
|
9,932 |
|
|
64 |
|
|
1,363 |
|
Multifamily
residential |
113 |
|
|
— |
|
|
440 |
|
|
113 |
|
|
— |
|
|
— |
|
Home equity lines of
credit |
5,486 |
|
|
6,013 |
|
|
6,099 |
|
|
5,338 |
|
|
15 |
|
|
133 |
|
Other consumer |
228 |
|
|
204 |
|
|
231 |
|
|
109 |
|
|
45 |
|
|
74 |
|
Total
consumer |
5,714 |
|
|
6,217 |
|
|
6,330 |
|
|
5,447 |
|
|
60 |
|
|
207 |
|
Other |
1,800 |
|
|
1,800 |
|
|
— |
|
|
— |
|
|
1,800 |
|
|
— |
|
Total |
$ |
80,079 |
|
|
85,025 |
|
|
89,900 |
|
|
51,133 |
|
|
2,131 |
|
|
26,815 |
|
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, 2015 |
|
Sep 30, 2015 |
|
Dec 31, 2014 |
|
Sep 30, 2015 |
|
Dec 31, 2014 |
Custom and owner
occupied construction |
$ |
462 |
|
|
$ |
138 |
|
|
$ |
— |
|
|
235 |
% |
|
n/m |
|
Pre-sold and spec
construction |
181 |
|
|
144 |
|
|
869 |
|
|
26 |
% |
|
(79 |
)% |
Total residential
construction |
643 |
|
|
282 |
|
|
869 |
|
|
128 |
% |
|
(26 |
)% |
Land development |
447 |
|
|
— |
|
|
— |
|
|
n/m |
|
|
n/m |
|
Consumer land or lots |
166 |
|
|
266 |
|
|
391 |
|
|
(38 |
)% |
|
(58 |
)% |
Unimproved land |
774 |
|
|
304 |
|
|
267 |
|
|
155 |
% |
|
190 |
% |
Commercial lots |
— |
|
|
— |
|
|
21 |
|
|
n/m |
|
|
(100 |
)% |
Other construction |
337 |
|
|
— |
|
|
— |
|
|
n/m |
|
|
n/m |
|
Total land, lot and other
construction |
1,724 |
|
|
570 |
|
|
679 |
|
|
202 |
% |
|
154 |
% |
Owner occupied |
2,760 |
|
|
2,497 |
|
|
5,971 |
|
|
11 |
% |
|
(54 |
)% |
Non-owner occupied |
923 |
|
|
5,529 |
|
|
3,131 |
|
|
(83 |
)% |
|
(71 |
)% |
Total commercial real
estate |
3,683 |
|
|
8,026 |
|
|
9,102 |
|
|
(54 |
)% |
|
(60 |
)% |
Commercial and
industrial |
1,968 |
|
|
2,774 |
|
|
2,915 |
|
|
(29 |
)% |
|
(32 |
)% |
Agriculture |
1,014 |
|
|
867 |
|
|
994 |
|
|
17 |
% |
|
2 |
% |
1st lien |
6,272 |
|
|
2,510 |
|
|
6,804 |
|
|
150 |
% |
|
(8 |
)% |
Junior lien |
1,077 |
|
|
228 |
|
|
491 |
|
|
372 |
% |
|
119 |
% |
Total 1-4
family |
7,349 |
|
|
2,738 |
|
|
7,295 |
|
|
168 |
% |
|
1 |
% |
Multifamily
Residential |
662 |
|
|
114 |
|
|
— |
|
|
481 |
% |
|
n/m |
|
Home equity lines of
credit |
1,046 |
|
|
1,599 |
|
|
1,288 |
|
|
(35 |
)% |
|
(19 |
)% |
Other consumer |
1,227 |
|
|
811 |
|
|
928 |
|
|
51 |
% |
|
32 |
% |
Total
consumer |
2,273 |
|
|
2,410 |
|
|
2,216 |
|
|
(6 |
)% |
|
3 |
% |
Other |
97 |
|
|
41 |
|
|
1,834 |
|
|
137 |
% |
|
(95 |
)% |
Total |
$ |
19,413 |
|
|
$ |
17,822 |
|
|
$ |
25,904 |
|
|
9 |
% |
|
(25 |
)% |
_______ |
n/m - not
measurable |
Glacier Bancorp, Inc. |
Credit Quality Summary by Regulatory
Classification (continued) |
|
|
Net Charge-Offs (Recoveries), Year-to-Date |
|
|
|
|
|
Period Ending, By Loan Type |
|
Charge-Offs |
|
Recoveries |
(Dollars in
thousands) |
Dec 31, 2015 |
|
Sep 30, 2015 |
|
Dec 31, 2014 |
|
Dec 31, 2015 |
Dec 31, 2015 |
Pre-sold and
spec construction |
$ |
(53 |
) |
|
(34 |
) |
|
(94 |
) |
|
— |
|
|
53 |
|
Land development |
(288 |
) |
|
(293 |
) |
|
(390 |
) |
|
957 |
|
|
1,245 |
|
Consumer land or lots |
66 |
|
|
(8 |
) |
|
375 |
|
|
512 |
|
|
446 |
|
Unimproved land |
(325 |
) |
|
(152 |
) |
|
52 |
|
|
— |
|
|
325 |
|
Developed lots for
operative builders |
(85 |
) |
|
(72 |
) |
|
(140 |
) |
|
51 |
|
|
136 |
|
Commercial lots |
(26 |
) |
|
(5 |
) |
|
(6 |
) |
|
— |
|
|
26 |
|
Other construction |
(1 |
) |
|
(1 |
) |
|
— |
|
|
— |
|
|
1 |
|
Total land, lot and other
construction |
(659 |
) |
|
(531 |
) |
|
(109 |
) |
|
1,520 |
|
|
2,179 |
|
Owner occupied |
247 |
|
|
249 |
|
|
669 |
|
|
668 |
|
|
421 |
|
Non-owner occupied |
93 |
|
|
105 |
|
|
(162 |
) |
|
116 |
|
|
23 |
|
Total commercial real
estate |
340 |
|
|
354 |
|
|
507 |
|
|
784 |
|
|
444 |
|
Commercial and
industrial |
1,389 |
|
|
1,011 |
|
|
1,069 |
|
|
2,166 |
|
|
777 |
|
Agriculture |
50 |
|
|
(8 |
) |
|
28 |
|
|
59 |
|
|
9 |
|
1st lien |
834 |
|
|
(80 |
) |
|
372 |
|
|
971 |
|
|
137 |
|
Junior lien |
(125 |
) |
|
(106 |
) |
|
183 |
|
|
79 |
|
|
204 |
|
Total 1-4
family |
709 |
|
|
(186 |
) |
|
555 |
|
|
1,050 |
|
|
341 |
|
Multifamily
residential |
(318 |
) |
|
(318 |
) |
|
138 |
|
|
— |
|
|
318 |
|
Home equity lines of
credit |
740 |
|
|
531 |
|
|
190 |
|
|
897 |
|
|
157 |
|
Other consumer |
143 |
|
|
39 |
|
|
226 |
|
|
525 |
|
|
382 |
|
Total
consumer |
883 |
|
|
570 |
|
|
416 |
|
|
1,422 |
|
|
539 |
|
Other |
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
Total |
$ |
2,340 |
|
|
858 |
|
|
2,510 |
|
|
7,001 |
|
|
4,661 |
|
Visit our website at
www.glacierbancorp.com
CONTACT:
Michael J. Blodnick
(406) 751-4701
Ron J. Copher
(406) 751-7706
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