Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $32.6
million for the current quarter, a decrease of $28.6 million, or 47
percent, from the $61.2 million of net income for the prior year
first quarter. Diluted earnings per share for the current quarter
was $0.29 per share, a decrease of 47 percent from the prior year
first quarter diluted earnings per share of $0.55. The decrease in
net income compared to the prior year first quarter was primarily
due to the significant increase in funding costs over the year
combined with the increased costs associated with the acquisition
of Wheatland Bank. The current quarter included $5.7 million of
acquisition-related expense and $6.1 million of credit loss expense
from the acquisition of Wheatland Bank. Included in the current
quarter non-interest expense was $1.5 million related to the FDIC
increased loss estimates from the special assessment pursuant to a
systemic risk determination. “We are pleased to see our margin grow
in the quarter and believe this positive trend will continue during
2024,” said Randy Chesler, President and Chief Executive Officer.
“We remain very confident in the quality of our loan portfolio and
were pleased to welcome Wheatland Bank to the Company and announce
the acquisition of the six Rocky Mountain Bank branches in Montana
from Heartland Financial.”
On January 31, 2024, the Company completed the
acquisition of Community Financial Group, Inc., the parent company
of Wheatland Bank (collectively, “Wheatland”), headquartered in
Spokane, Washington. Wheatland has 14 branches in eastern
Washington and was combined with the North Cascades Bank division,
with combined operations under the name Wheatland Bank, division of
Glacier Bank. The Company’s results of operations and financial
condition include the Wheatland acquisition beginning on the
acquisition date. The following table discloses the preliminary
fair value estimates of select classifications of assets and
liabilities acquired:
|
Wheatland |
(Dollars in thousands) |
January 31,2024 |
Total assets |
$ |
777,659 |
Debt securities |
|
187,183 |
Loans receivable |
|
450,403 |
Non-interest bearing
deposits |
|
277,651 |
Interest bearing deposits |
|
339,304 |
Borrowings |
|
58,500 |
|
|
|
During the current quarter, the Company
announced the signing of a purchase and assumption agreement to
purchase six Montana branches from the Rocky Mountain Bank division
of HTLF. The branches will join Glacier Bank divisions operating in
Montana. The branch acquisition is subject to regulatory approvals
and other customary conditions of closing and is expected to be
completed in the third quarter of 2024.
Asset Summary
|
|
|
|
|
|
|
$ Change from |
(Dollars in thousands) |
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
Dec 31,2023 |
|
Mar 31,2023 |
Cash and cash equivalents |
$ |
788,660 |
|
|
1,354,342 |
|
|
1,529,534 |
|
|
(565,682 |
) |
|
(740,874 |
) |
Debt securities,
available-for-sale |
|
4,629,073 |
|
|
4,785,719 |
|
|
5,198,313 |
|
|
(156,646 |
) |
|
(569,240 |
) |
Debt securities,
held-to-maturity |
|
3,451,583 |
|
|
3,502,411 |
|
|
3,664,393 |
|
|
(50,828 |
) |
|
(212,810 |
) |
Total debt securities |
|
8,080,656 |
|
|
8,288,130 |
|
|
8,862,706 |
|
|
(207,474 |
) |
|
(782,050 |
) |
Loans receivable |
|
|
|
|
|
|
|
|
|
Residential real estate |
|
1,752,514 |
|
|
1,704,544 |
|
|
1,508,403 |
|
|
47,970 |
|
|
244,111 |
|
Commercial real estate |
|
10,672,269 |
|
|
10,303,306 |
|
|
9,992,019 |
|
|
368,963 |
|
|
680,250 |
|
Other commercial |
|
3,030,608 |
|
|
2,901,863 |
|
|
2,804,104 |
|
|
128,745 |
|
|
226,504 |
|
Home equity |
|
883,062 |
|
|
888,013 |
|
|
829,844 |
|
|
(4,951 |
) |
|
53,218 |
|
Other consumer |
|
394,049 |
|
|
400,356 |
|
|
384,242 |
|
|
(6,307 |
) |
|
9,807 |
|
Loans receivable |
|
16,732,502 |
|
|
16,198,082 |
|
|
15,518,612 |
|
|
534,420 |
|
|
1,213,890 |
|
Allowance for credit losses |
|
(198,779 |
) |
|
(192,757 |
) |
|
(186,604 |
) |
|
(6,022 |
) |
|
(12,175 |
) |
Loans receivable, net |
|
16,533,723 |
|
|
16,005,325 |
|
|
15,332,008 |
|
|
528,398 |
|
|
1,201,715 |
|
Other assets |
|
2,419,131 |
|
|
2,094,832 |
|
|
2,078,186 |
|
|
324,299 |
|
|
340,945 |
|
Total assets |
$ |
27,822,170 |
|
|
27,742,629 |
|
|
27,802,434 |
|
|
79,541 |
|
|
19,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The $789 million cash balance at March 31, 2024
decreased $566 million during the current quarter as cash was
utilized to partially fund the maturity of the BTFP. Total debt
securities of $8.081 billion at March 31, 2024 decreased $207
million during the current quarter and decreased $782 million, or 9
percent, from the prior year end. Debt securities represented 29
percent of total assets at March 31, 2024 compared to 30 percent at
December 31, 2023 and 32 percent at March 31, 2023.
The loan portfolio of $16.733 billion at March
31, 2024 increased $534 million, or 3 percent, during the current
quarter and increased $1.214 billion, or 8 percent, from the prior
year. Excluding the Wheatland acquisition, the loan portfolio
increased $84.0 million, or 2 percent annualized, with the largest
increase in commercial real estate, which increased $63.9 million,
or 2 percent annualized. Excluding the Wheatland acquisition, the
loan portfolio increased $763 million, or 5 percent, from the prior
year first quarter with the largest increase in commercial real
estate loans, which increased $375 million, or 4 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 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
Allowance for credit
losses |
|
|
|
|
|
Balance at beginning of period |
$ |
192,757 |
|
|
182,283 |
|
|
182,283 |
|
Acquisitions |
|
3 |
|
|
— |
|
|
— |
|
Provision for credit losses |
|
9,091 |
|
|
20,790 |
|
|
6,260 |
|
Charge-offs |
|
(4,295 |
) |
|
(15,095 |
) |
|
(3,293 |
) |
Recoveries |
|
1,223 |
|
|
4,779 |
|
|
1,354 |
|
Balance at end of period |
$ |
198,779 |
|
|
192,757 |
|
|
186,604 |
|
Provision for credit
losses |
|
|
|
|
|
Loan portfolio |
$ |
9,091 |
|
|
20,790 |
|
|
6,260 |
|
Unfunded loan commitments |
|
(842 |
) |
|
(5,995 |
) |
|
(790 |
) |
Total provision for credit losses |
$ |
8,249 |
|
|
14,795 |
|
|
5,470 |
|
Other real estate owned |
$ |
432 |
|
|
1,032 |
|
|
— |
|
Other foreclosed assets |
|
459 |
|
|
471 |
|
|
31 |
|
Accruing loans 90 days or more
past due |
|
3,796 |
|
|
3,312 |
|
|
3,545 |
|
Non-accrual loans |
|
20,738 |
|
|
20,816 |
|
|
28,403 |
|
Total non-performing assets |
$ |
25,425 |
|
|
25,631 |
|
|
31,979 |
|
Non-performing assets as a
percentage of subsidiary assets |
|
0.09 |
% |
|
0.09 |
% |
|
0.12 |
% |
Allowance for credit losses as
a percentage of non-performing loans |
|
810 |
% |
|
799 |
% |
|
584 |
% |
Allowance for credit losses as
a percentage of total loans |
|
1.19 |
% |
|
1.19 |
% |
|
1.20 |
% |
Net charge-offs as a
percentage of total loans |
|
0.02 |
% |
|
0.06 |
% |
|
0.01 |
% |
Accruing loans 30-89 days past
due |
$ |
62,423 |
|
|
49,967 |
|
|
24,993 |
|
U.S. government guarantees
included in non-performing assets |
$ |
1,490 |
|
|
1,503 |
|
|
2,071 |
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets of $25.4 million at March
31, 2024 decreased $206 thousand, or 1 percent, over the prior
quarter and decreased $6.6 million, or 20 percent, over the prior
year first quarter. Non-performing assets as a percentage of
subsidiary assets at March 31, 2024 was 0.09 percent compared to
0.09 percent in the prior quarter and 0.12 percent in the prior
year first quarter.
Early stage delinquencies (accruing loans 30-89
days past due) of $62.4 million at March 31, 2024 increased $12.5
million from the prior quarter and increased $37.4 million from
prior year first quarter. The increase over the prior period was
primarily isolated to one credit relationship of $18.1 million.
Early stage delinquencies as a percentage of loans at March 31,
2024 were 0.37 percent compared to 0.31 percent for the prior
quarter end and 0.16 percent for the prior year first quarter.
The current quarter credit loss expense of $8.2
million included $5.3 million of provision for credit losses on
loans and $818 thousand of provision for credit loss on unfunded
loan commitments from the acquisition of Wheatland. Excluding the
acquisition of Wheatland, the current quarter credit loss expense
was $2.1 million, including a $3.8 million credit loss expense from
loans and $1.7 million of credit loss benefit from unfunded loan
commitments. The allowance for credit losses on loans (“ACL”) as a
percentage of total loans outstanding at March 31, 2024 and
December 31, 2023 was 1.19 percent compared to 1.20 percent at
March 31, 2023.
Credit Quality Trends and Provision for Credit Losses on the
Loan Portfolio
(Dollars in thousands) |
Provision for Credit Losses Loans |
|
Net Charge-Offs(Recoveries) |
|
ACLas a Percentof Loans |
|
AccruingLoans
30-89Days Past Dueas a Percent ofLoans |
|
Non-PerformingAssets toTotal SubsidiaryAssets |
First quarter 2024 |
$ |
9,091 |
|
|
$ |
3,072 |
|
1.19 |
% |
|
0.37 |
% |
|
0.09 |
% |
Fourth quarter 2023 |
|
4,181 |
|
|
|
3,695 |
|
1.19 |
% |
|
0.31 |
% |
|
0.09 |
% |
Third quarter 2023 |
|
5,095 |
|
|
|
2,209 |
|
1.19 |
% |
|
0.09 |
% |
|
0.15 |
% |
Second quarter 2023 |
|
5,254 |
|
|
|
2,473 |
|
1.19 |
% |
|
0.16 |
% |
|
0.12 |
% |
First quarter 2023 |
|
6,260 |
|
|
|
1,939 |
|
1.20 |
% |
|
0.16 |
% |
|
0.12 |
% |
Fourth quarter 2022 |
|
6,060 |
|
|
|
1,968 |
|
1.20 |
% |
|
0.14 |
% |
|
0.12 |
% |
Third quarter 2022 |
|
8,382 |
|
|
|
3,154 |
|
1.20 |
% |
|
0.07 |
% |
|
0.13 |
% |
Second quarter 2022 |
|
(1,353 |
) |
|
|
1,843 |
|
1.20 |
% |
|
0.12 |
% |
|
0.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs for the current quarter were
$3.1 million compared to $3.7 million in the prior quarter and $1.9
million for the prior year first quarter. Net charge-offs of $3.1
million included $2.4 million in deposit overdraft net charge-offs
and $626 thousand of net loan charge-offs.
Excluding the acquisition of Wheatland, the
current quarter provision for credit loss expense for loans was
$3.8 million, which was a decrease of $361 thousand from the prior
quarter and a $2.4 million decrease from the prior year first
quarter. Loan portfolio growth, composition, average loan size,
credit quality considerations, economic forecasts and other
environmental factors will continue to determine the level of the
provision for credit losses for loans.
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 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
Dec 31,2023 |
|
Mar 31,2023 |
Deposits |
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
$ |
6,055,069 |
|
6,022,980 |
|
7,001,241 |
|
32,089 |
|
|
(946,172 |
) |
NOW and DDA accounts |
|
5,376,605 |
|
5,321,257 |
|
5,156,709 |
|
55,348 |
|
|
219,896 |
|
Savings accounts |
|
2,949,908 |
|
2,833,887 |
|
2,985,351 |
|
116,021 |
|
|
(35,443 |
) |
Money market deposit accounts |
|
3,002,942 |
|
2,831,624 |
|
3,429,123 |
|
171,318 |
|
|
(426,181 |
) |
Certificate accounts |
|
3,039,190 |
|
2,915,393 |
|
1,155,494 |
|
123,797 |
|
|
1,883,696 |
|
Core deposits, total |
|
20,423,714 |
|
19,925,141 |
|
19,727,918 |
|
498,573 |
|
|
695,796 |
|
Wholesale deposits |
|
3,809 |
|
4,026 |
|
420,390 |
|
(217 |
) |
|
(416,581 |
) |
Deposits, total |
|
20,427,523 |
|
19,929,167 |
|
20,148,308 |
|
498,356 |
|
|
279,215 |
|
Repurchase agreements |
|
1,540,008 |
|
1,486,850 |
|
1,191,323 |
|
53,158 |
|
|
348,685 |
|
Deposits and repurchase agreements, total |
|
21,967,531 |
|
21,416,017 |
|
21,339,631 |
|
551,514 |
|
|
627,900 |
|
Federal Home Loan Bank advances |
|
2,140,157 |
|
— |
|
335,000 |
|
2,140,157 |
|
|
1,805,157 |
|
FRB Bank Term Funding |
|
— |
|
2,740,000 |
|
2,740,000 |
|
(2,740,000 |
) |
|
(2,740,000 |
) |
Other borrowed funds |
|
88,814 |
|
81,695 |
|
76,185 |
|
7,119 |
|
|
12,629 |
|
Subordinated debentures |
|
132,984 |
|
132,943 |
|
132,822 |
|
41 |
|
|
162 |
|
Other liabilities |
|
381,977 |
|
351,693 |
|
251,892 |
|
30,284 |
|
|
130,085 |
|
Total liabilities |
$ |
24,711,463 |
|
24,722,348 |
|
24,875,530 |
|
(10,885 |
) |
|
(164,067 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits of $20.428 billion at March 31,
2024 increased $498 million, or 3 percent, during the current
quarter and increased $279 million, or 1 percent, from the prior
year first quarter. Excluding the Wheatland acquisition, total
deposits decreased $119 million, or 1 percent, during the current
quarter and decreased $338 million, or 2 percent, from the prior
year first quarter. Non-interest bearing deposits represented 30
percent of total deposits at both March 31, 2024 and December 31,
2023 compared to 35 percent at March 31, 2023.
Upon maturity in the current quarter, the
Company paid off its $2.740 billion BTFP borrowings with a
combination of $2.140 billion in FHLB borrowings and cash,
resulting in a net reduction of $600 million in borrowings. The
FHLB borrowings of $2.140 billion at quarter end included $340
million of overnight borrowings and $1.800 billion in term
borrowings that will mature between March of 2025 and March of 2026
at a weighted average rate of 4.75 percent and a FHLB dividend
adjusted weighted average rate of 4.41 percent compared to 4.38
percent for the matured BTFP borrowings.
Stockholders’ Equity Summary
|
|
|
|
|
|
|
$ Change from |
(Dollars in thousands, except
per share data) |
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
Dec 31,2023 |
|
Mar 31,2023 |
Common equity |
$ |
3,483,012 |
|
|
3,394,394 |
|
|
3,337,132 |
|
|
88,618 |
|
|
145,880 |
|
Accumulated other
comprehensive loss |
|
(372,305 |
) |
|
(374,113 |
) |
|
(410,228 |
) |
|
1,808 |
|
|
37,923 |
|
Total stockholders’ equity |
|
3,110,707 |
|
|
3,020,281 |
|
|
2,926,904 |
|
|
90,426 |
|
|
183,803 |
|
Goodwill and core deposit
intangible, net |
|
(1,069,808 |
) |
|
(1,017,263 |
) |
|
(1,024,545 |
) |
|
(52,545 |
) |
|
(45,263 |
) |
Tangible stockholders’ equity |
$ |
2,040,899 |
|
|
2,003,018 |
|
|
1,902,359 |
|
|
37,881 |
|
|
138,540 |
|
Stockholders’ equity to total assets |
|
11.18 |
% |
|
10.89 |
% |
|
10.53 |
% |
|
|
|
|
|
Tangible stockholders’ equity to total tangible assets |
|
7.63 |
% |
|
7.49 |
% |
|
7.10 |
% |
|
|
|
|
|
Book value per common share |
$ |
27.43 |
|
|
27.24 |
|
|
26.40 |
|
|
0.19 |
|
|
1.03 |
|
Tangible book value per common share |
$ |
18.00 |
|
|
18.06 |
|
|
17.16 |
|
|
(0.06 |
) |
|
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible stockholders’ equity of $2.041 billion
at March 31, 2024 increased $37.9 million, or 2 percent, compared
to the prior quarter and was primarily due to $92.4 million of
Company common stock issued for the acquisition of Wheatland. The
increase was partially offset by the increase in goodwill and core
deposits associated the acquisition of Wheatland. Tangible book
value per common share of $18.00 at the current quarter end
decreased $0.06 per share, or 33 basis points, from the prior
quarter and increased $0.84 per share, or 5 percent, from the prior
year first quarter.
Cash DividendsOn March 27, 2024, the Company’s
Board of Directors declared a quarterly cash dividend of $0.33 per
share. The dividend was payable April 18, 2024 to shareholders of
record on April 9, 2024. The dividend was the Company’s 156th
consecutive regular 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,
2024 Compared to
December 31, 2023, and
March 31, 2023 |
|
Income
Summary |
|
|
Three Months ended |
|
$ Change from |
(Dollars in thousands) |
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
Dec 31,2023 |
|
Mar 31,2023 |
Net interest income |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
279,402 |
|
|
273,496 |
|
|
231,888 |
|
|
5,906 |
|
|
47,514 |
|
Interest expense |
|
112,922 |
|
|
107,040 |
|
|
45,696 |
|
|
5,882 |
|
|
67,226 |
|
Total net interest income |
|
166,480 |
|
|
166,456 |
|
|
186,192 |
|
|
24 |
|
|
(19,712 |
) |
Non-interest income |
|
|
|
|
|
|
|
|
|
Service charges and other fees |
|
18,563 |
|
|
19,115 |
|
|
17,771 |
|
|
(552 |
) |
|
792 |
|
Miscellaneous loan fees and charges |
|
4,362 |
|
|
4,484 |
|
|
3,967 |
|
|
(122 |
) |
|
395 |
|
Gain on sale of loans |
|
3,362 |
|
|
2,228 |
|
|
2,400 |
|
|
1,134 |
|
|
962 |
|
Gain (loss) on sale of securities |
|
16 |
|
|
1,712 |
|
|
(114 |
) |
|
(1,696 |
) |
|
130 |
|
Other income |
|
3,686 |
|
|
3,326 |
|
|
3,871 |
|
|
360 |
|
|
(185 |
) |
Total non-interest income |
|
29,989 |
|
|
30,865 |
|
|
27,895 |
|
|
(876 |
) |
|
2,094 |
|
Total income |
$ |
196,469 |
|
|
197,321 |
|
|
214,087 |
|
|
(852 |
) |
|
(17,618 |
) |
Net interest margin
(tax-equivalent) |
|
2.59 |
% |
|
2.56 |
% |
|
3.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest IncomeThe current quarter interest
income of $279 million increased $5.9 million, or 2 percent, over
the prior quarter and increased $47.5 million, or 20 percent, from
the prior year first quarter. Both increases were primarily driven
by the increase in the loan yields and the increase in average
balances of the loan portfolio. The loan yield of 5.46 percent in
the current quarter increased 12 basis points from the prior
quarter loan yield of 5.34 percent and increased 44 basis points
from the prior year first quarter loan yield of 5.02 percent.
The current quarter interest expense of $113
million increased $5.9 million, or 6 percent, over the prior
quarter and increased $67.2 million, or 147 percent, over the prior
year first quarter primarily the result of an increase in rates on
deposits and borrowings. Core deposit cost (including non-interest
bearing deposits) was 1.34 percent for the current quarter compared
to 1.24 percent in the prior quarter and 0.23 percent for the prior
year first quarter. The increase in core deposit costs during the
current quarter of 10 basis points was the smallest increase since
the fourth quarter of 2022. The total cost of funding (including
non-interest bearing deposits) was 1.84 percent in the current
quarter compared to 1.72 percent in the prior quarter and 0.79
percent in the prior year first quarter, which was the result of
the increased deposit and borrowing rates.
The current quarter experienced an increase in
the net interest margin for the first time since the third quarter
of 2022. The Company’s net interest margin as a percentage of
earning assets, on a tax-equivalent basis, for the current quarter
was 2.59 percent compared to 2.56 percent in the prior quarter and
was primarily driven by the increase in loan yields outpacing the
increase in deposit costs. Excluding the 3 basis points from
discount accretion and the 1 basis point from recovery of
non-accrual interest, the core net interest margin was 2.55 percent
compared to 2.54 in the prior quarter and 3.07 percent in the prior
year first quarter.
Non-interest IncomeNon-interest income for the
current quarter totaled $30.0 million, which was a decrease of $876
thousand, or 3 percent, over the prior quarter. Gain on the sale of
residential loans of $3.4 million for the current quarter increased
$1.1 million, or 51 percent, compared to the prior quarter and
increased $962 thousand, or 40 percent, from the prior year first
quarter. Included in the prior quarter gain on sale of securities
was $1.7 million of gain on the sale of all of the Company’s Visa
class B shares.
Non-interest Expense Summary
|
Three Months ended |
|
$ Change from |
(Dollars in thousands) |
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
Dec 31,2023 |
|
Mar 31,2023 |
Compensation and employee benefits |
$ |
85,789 |
|
71,420 |
|
81,477 |
|
14,369 |
|
|
4,312 |
|
Occupancy and equipment |
|
11,883 |
|
10,533 |
|
11,665 |
|
1,350 |
|
|
218 |
|
Advertising and
promotions |
|
3,983 |
|
3,410 |
|
4,235 |
|
573 |
|
|
(252 |
) |
Data processing |
|
9,159 |
|
8,511 |
|
8,109 |
|
648 |
|
|
1,050 |
|
Other real estate owned and
foreclosed assets |
|
25 |
|
78 |
|
12 |
|
(53 |
) |
|
13 |
|
Regulatory assessments and
insurance |
|
7,761 |
|
12,435 |
|
4,903 |
|
(4,674 |
) |
|
2,858 |
|
Core deposit intangibles
amortization |
|
2,760 |
|
2,427 |
|
2,449 |
|
333 |
|
|
311 |
|
Other expenses |
|
30,483 |
|
23,382 |
|
22,132 |
|
7,101 |
|
|
8,351 |
|
Total non-interest expense |
$ |
151,843 |
|
132,196 |
|
134,982 |
|
19,647 |
|
|
16,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expense of $152 million for
the current quarter increased $19.6 million, or 15 percent, over
the prior quarter and increased $16.9 million, or 12 percent, over
the prior year first quarter. In the prior quarter, the FDIC issued
a special assessment for the estimated losses associated with the
bank failures in March of 2023 and FDIC loss estimates were again
increased by $1.5 million in the current quarter from $6.0 million
in the prior quarter. Included in the current quarter was a total
of $10.7 million of non-interest expense associated with the
Wheatland acquisition, including $5.0 million in operating expenses
and $5.7 million in acquisition-related expenses. Excluding the
$10.7 million impact of the Wheatland acquisition and the $1.5
million FDIC special assessment, non-interest expense for the
current quarter was $139.6 million. Excluding the $6.0 million FDIC
special assessment, $459 thousand of acquisition-related expenses,
and $6.0 million reduction in accrued performance-related
compensation, non-interest expense for the prior quarter was $131.7
million. As adjusted, total non-interest expense of $139.6 million
for the current quarter increased $7.9 million, or 6 percent, over
the prior quarter non-interest expense of $131.7 million, and an
increase of $5.0 million, or 4 percent, over the prior year first
quarter.
Compensation and employee benefits expense of
$85.8 million for the current quarter increased $14.4 million, or
20 percent, from the prior quarter and increased $4.3 million, or 5
percent, over the prior year first quarter which was driven by the
acquisition of Wheatland, annual salary increases and increases in
other benefits. Excluding the prior quarter $6.0 million accrual
reduction and the $2.2 million compensation from the Wheatland
acquisition, compensation and employee benefit expenses for the
current quarter increased $6.2 million, or 8 percent over the prior
quarter.
Other expense of $30.5 million increased $7.1
million, or 30 percent, from the prior quarter and increased $8.4
million from the prior year first quarter with both increases
primarily attributable to increased acquisition-related expenses.
Included in other expenses was acquisition-related expenses of $5.7
million in the current quarter, $459 thousand in the prior quarter
and $352 thousand in the prior year first quarter. “The Company was
excellent in controlling non-interest expenses in a challenging
environment including the inflationary pressures that persist,”
said Ron Copher, Chief Financial Officer.
Federal and State Income Tax ExpenseTax expense
during the first quarter of 2024 was $3.8 million, a decrease of
$4.0 million, or 52 percent, compared to the prior quarter and a
decrease of $8.7 million, or 70 percent, from the prior year first
quarter. The effective tax rate in the current quarter was 10.3
percent compared to 12.6 percent in the prior quarter and 16.9
percent in the prior year first quarter. The current quarter
decrease in tax expense and the resulting effective tax rate was
the result of a combination of increased federal income tax credits
and a decrease in pre-tax income.
Efficiency RatioThe efficiency ratio was 74.4
percent in the current quarter compared to 65.20 percent in the
prior quarter and 60.39 percent in the prior year first quarter.
The increase from the prior quarter was principally driven by the
increased operating costs, including acquisition-related costs,
from the Wheatland acquisition. The increase in the efficiency
ratio from prior year first quarter was the combined impact of the
expenses related to the Wheatland acquisition and a decrease in net
interest income.
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 the Company’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
other comparable words or phrases of a future or forward-looking
nature. 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 based on assumptions
that are subject to change. The following factors, among others,
could cause actual results to differ materially from the
anticipated results (express or implied) or other expectations in
the forward-looking statements, including those made in this news
release:
- risks associated with lending and
potential adverse changes in the credit quality of the Company’s
loan portfolio;
- changes in monetary and fiscal
policies, including interest rate policies of the Federal Reserve
Board, which could adversely affect the Company’s net interest
income and margin, the fair value of its financial instruments,
profitability, and stockholders’ equity;
- legislative or regulatory changes,
including increased FDIC insurance rates and assessments, changes
in the review and regulation of bank mergers, or increased banking
and consumer protection regulations, that may adversely affect the
Company’s business and strategies;
- risks related to overall economic conditions, including the
impact on the economy of a rising interest rate environment,
inflationary pressures, and geopolitical instability, including the
wars in Ukraine and the Middle East;
- risks associated with the Company’s ability to negotiate,
complete, and successfully integrate any future acquisitions;
- costs or difficulties related to
the completion and integration of pending or future
acquisitions;
- impairment of the goodwill recorded
by the Company in connection with acquisitions, which may have an
adverse impact on earnings and capital;
- reduction in demand for banking
products and services, whether as a result of changes in customer
behavior, economic conditions, banking environment, or
competition;
- deterioration of the reputation of
banks and the financial services industry, which could adversely
affect the Company's ability to obtain and maintain customers;
- changes in the competitive
landscape, including as may result from new market entrants or
further consolidation in the financial services industry, resulting
in the creation of larger competitors with greater financial
resources;
- 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 through acquisitions;
- risks associated with dependence on
the Chief Executive Officer, the senior management team and the
Presidents of Glacier Bank’s divisions;
- material failure, potential
interruption or breach in security of the Company’s systems or
changes in technological which could expose the Company to
cybersecurity risks, fraud, system failures, or direct
liabilities;
- risks related to natural disasters,
including droughts, fires, floods, earthquakes, pandemics, and
other unexpected events;
- success in managing risks involved
in the foregoing; and
- 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 InformationA conference call for
investors is scheduled for 11:00 a.m. Eastern Time on Friday, April
19, 2024. Please note that our conference call host no longer
offers a general dial-in number. Investors who would like to join
the call may now register by following this link to obtain dial-in
instructions:
https://register.vevent.com/register/BId550ca03e5d445a9891dc7564271bdf4.
To participate via the webcast, log on to:
https://edge.media-server.com/mmc/p/ah79xpra. If you are unable to
participate during the live webcast, the call will be archived on
our website, www.glacierbancorp.com.
About Glacier Bancorp, Inc.Glacier Bancorp, Inc.
(NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap
400® indices, is the parent company for Glacier Bank and its Bank
divisions located across its eight state Western U.S. footprint:
Altabank (American Fork, UT), Bank of the San Juans (Durango, CO),
Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank
(Buena Vista, CO), First Bank of Montana (Lewistown, MT), First
Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton,
UT), First Security Bank (Bozeman, MT), First Security Bank of
Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier
Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain
West Bank (Coeur d’Alene, ID), The Foothills Bank (Yuma, AZ),
Valley Bank of Helena (Helena, MT), Western Security Bank
(Billings, MT), and Wheatland Bank (Spokane, WA).
|
Glacier Bancorp, Inc.Unaudited Condensed
Consolidated Statements of Financial Condition |
|
(Dollars in thousands, except
per share data) |
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
Assets |
|
|
|
|
|
Cash on hand and in banks |
$ |
232,064 |
|
|
246,525 |
|
|
290,960 |
|
Interest bearing cash deposits |
|
556,596 |
|
|
1,107,817 |
|
|
1,238,574 |
|
Cash and cash equivalents |
|
788,660 |
|
|
1,354,342 |
|
|
1,529,534 |
|
Debt securities, available-for-sale |
|
4,629,073 |
|
|
4,785,719 |
|
|
5,198,313 |
|
Debt securities, held-to-maturity |
|
3,451,583 |
|
|
3,502,411 |
|
|
3,664,393 |
|
Total debt securities |
|
8,080,656 |
|
|
8,288,130 |
|
|
8,862,706 |
|
Loans held for sale, at fair value |
|
27,035 |
|
|
15,691 |
|
|
14,461 |
|
Loans receivable |
|
16,732,502 |
|
|
16,198,082 |
|
|
15,518,612 |
|
Allowance for credit losses |
|
(198,779 |
) |
|
(192,757 |
) |
|
(186,604 |
) |
Loans receivable, net |
|
16,533,723 |
|
|
16,005,325 |
|
|
15,332,008 |
|
Premises and equipment, net |
|
443,273 |
|
|
421,791 |
|
|
399,740 |
|
Other real estate owned and foreclosed assets |
|
891 |
|
|
1,503 |
|
|
31 |
|
Accrued interest receivable |
|
106,063 |
|
|
94,526 |
|
|
90,642 |
|
Deferred tax asset |
|
161,327 |
|
|
159,070 |
|
|
172,453 |
|
Core deposit intangible, net |
|
46,046 |
|
|
31,870 |
|
|
39,152 |
|
Goodwill |
|
1,023,762 |
|
|
985,393 |
|
|
985,393 |
|
Non-marketable equity securities |
|
111,129 |
|
|
12,755 |
|
|
23,414 |
|
Bank-owned life insurance |
|
186,625 |
|
|
171,101 |
|
|
168,235 |
|
Other assets |
|
312,980 |
|
|
201,132 |
|
|
184,665 |
|
Total assets |
$ |
27,822,170 |
|
|
27,742,629 |
|
|
27,802,434 |
|
Liabilities |
|
|
|
|
|
Non-interest bearing deposits |
$ |
6,055,069 |
|
|
6,022,980 |
|
|
7,001,241 |
|
Interest bearing deposits |
|
14,372,454 |
|
|
13,906,187 |
|
|
13,147,067 |
|
Securities sold under agreements to repurchase |
|
1,540,008 |
|
|
1,486,850 |
|
|
1,191,323 |
|
FHLB advances |
|
2,140,157 |
|
|
— |
|
|
335,000 |
|
FRB Bank Term Funding |
|
— |
|
|
2,740,000 |
|
|
2,740,000 |
|
Other borrowed funds |
|
88,814 |
|
|
81,695 |
|
|
76,185 |
|
Subordinated debentures |
|
132,984 |
|
|
132,943 |
|
|
132,822 |
|
Accrued interest payable |
|
32,584 |
|
|
125,907 |
|
|
8,968 |
|
Other liabilities |
|
349,393 |
|
|
225,786 |
|
|
242,924 |
|
Total liabilities |
|
24,711,463 |
|
|
24,722,348 |
|
|
24,875,530 |
|
Commitments and
Contingent Liabilities |
|
|
|
|
|
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, 234,000,000 shares
authorized |
|
1,134 |
|
|
1,109 |
|
|
1,109 |
|
Paid-in capital |
|
2,443,584 |
|
|
2,350,104 |
|
|
2,344,514 |
|
Retained earnings - substantially restricted |
|
1,038,294 |
|
|
1,043,181 |
|
|
991,509 |
|
Accumulated other comprehensive loss |
|
(372,305 |
) |
|
(374,113 |
) |
|
(410,228 |
) |
Total stockholders’ equity |
|
3,110,707 |
|
|
3,020,281 |
|
|
2,926,904 |
|
Total liabilities and stockholders’ equity |
$ |
27,822,170 |
|
|
27,742,629 |
|
|
27,802,434 |
|
|
Glacier Bancorp, Inc.Unaudited Condensed
Consolidated Statements of Operations |
|
|
Three Months ended |
(Dollars in thousands, except
per share data) |
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
Interest
Income |
|
|
|
|
|
Investment securities |
$ |
56,218 |
|
57,233 |
|
|
43,642 |
|
Residential real estate loans |
|
20,764 |
|
19,820 |
|
|
15,838 |
|
Commercial loans |
|
181,472 |
|
175,957 |
|
|
155,682 |
|
Consumer and other loans |
|
20,948 |
|
20,486 |
|
|
16,726 |
|
Total interest income |
|
279,402 |
|
273,496 |
|
|
231,888 |
|
Interest
Expense |
|
|
|
|
|
Deposits |
|
67,196 |
|
63,484 |
|
|
12,545 |
|
Securities sold under agreements to repurchase |
|
12,598 |
|
12,229 |
|
|
4,606 |
|
Federal Home Loan Bank advances |
|
4,249 |
|
— |
|
|
23,605 |
|
FRB Bank Term Funding |
|
27,097 |
|
30,228 |
|
|
3,032 |
|
Other borrowed funds |
|
344 |
|
(372 |
) |
|
496 |
|
Subordinated debentures |
|
1,438 |
|
1,471 |
|
|
1,412 |
|
Total interest expense |
|
112,922 |
|
107,040 |
|
|
45,696 |
|
Net Interest
Income |
|
166,480 |
|
166,456 |
|
|
186,192 |
|
Provision for credit losses |
|
8,249 |
|
3,013 |
|
|
5,470 |
|
Net interest income after provision for credit losses |
|
158,231 |
|
163,443 |
|
|
180,722 |
|
Non-Interest
Income |
|
|
|
|
|
Service charges and other fees |
|
18,563 |
|
19,115 |
|
|
17,771 |
|
Miscellaneous loan fees and charges |
|
4,362 |
|
4,484 |
|
|
3,967 |
|
Gain on sale of loans |
|
3,362 |
|
2,228 |
|
|
2,400 |
|
Gain (loss) on sale of securities |
|
16 |
|
1,712 |
|
|
(114 |
) |
Other income |
|
3,686 |
|
3,326 |
|
|
3,871 |
|
Total non-interest income |
|
29,989 |
|
30,865 |
|
|
27,895 |
|
Non-Interest
Expense |
|
|
|
|
|
Compensation and employee benefits |
|
85,789 |
|
71,420 |
|
|
81,477 |
|
Occupancy and equipment |
|
11,883 |
|
10,533 |
|
|
11,665 |
|
Advertising and promotions |
|
3,983 |
|
3,410 |
|
|
4,235 |
|
Data processing |
|
9,159 |
|
8,511 |
|
|
8,109 |
|
Other real estate owned and foreclosed assets |
|
25 |
|
78 |
|
|
12 |
|
Regulatory assessments and insurance |
|
7,761 |
|
12,435 |
|
|
4,903 |
|
Core deposit intangibles amortization |
|
2,760 |
|
2,427 |
|
|
2,449 |
|
Other expenses |
|
30,483 |
|
23,382 |
|
|
22,132 |
|
Total non-interest expense |
|
151,843 |
|
132,196 |
|
|
134,982 |
|
Income Before Income
Taxes |
|
36,377 |
|
62,112 |
|
|
73,635 |
|
Federal and state income tax expense |
|
3,750 |
|
7,796 |
|
|
12,424 |
|
Net
Income |
$ |
32,627 |
|
54,316 |
|
|
61,211 |
|
|
Glacier Bancorp, Inc.Average Balance
Sheets |
|
|
Three Months ended |
|
March 31, 2024 |
|
December 31, 2023 |
(Dollars in thousands) |
AverageBalance |
|
Interest &Dividends |
|
AverageYield/Rate |
|
AverageBalance |
|
Interest &Dividends |
|
AverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans |
$ |
1,747,184 |
|
$ |
20,764 |
|
4.75 |
% |
|
$ |
1,700,598 |
|
$ |
19,820 |
|
4.66 |
% |
Commercial loans 1 |
|
13,513,426 |
|
|
183,045 |
|
5.45 |
% |
|
|
13,196,412 |
|
|
177,397 |
|
5.33 |
% |
Consumer and other loans |
|
1,283,388 |
|
|
20,948 |
|
6.56 |
% |
|
|
1,279,626 |
|
|
20,486 |
|
6.35 |
% |
Total loans 2 |
|
16,543,998 |
|
|
224,757 |
|
5.46 |
% |
|
|
16,176,636 |
|
|
217,703 |
|
5.34 |
% |
Tax-exempt debt securities 3 |
|
1,720,370 |
|
|
15,157 |
|
3.52 |
% |
|
|
1,725,858 |
|
|
14,738 |
|
3.42 |
% |
Taxable debt securities 4, 5 |
|
8,176,974 |
|
|
43,477 |
|
2.13 |
% |
|
|
8,466,825 |
|
|
44,665 |
|
2.11 |
% |
Total earning assets |
|
26,441,342 |
|
|
283,391 |
|
4.31 |
% |
|
|
26,369,319 |
|
|
277,106 |
|
4.17 |
% |
Goodwill and intangibles |
|
1,051,954 |
|
|
|
|
|
|
1,018,423 |
|
|
|
|
Non-earning assets |
|
611,550 |
|
|
|
|
|
|
487,979 |
|
|
|
|
Total assets |
$ |
28,104,846 |
|
|
|
|
|
$ |
27,875,721 |
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
$ |
5,966,546 |
|
$ |
— |
|
— |
% |
|
$ |
6,262,801 |
|
$ |
— |
|
— |
% |
NOW and DDA accounts |
|
5,275,703 |
|
|
15,918 |
|
1.21 |
% |
|
|
5,245,602 |
|
|
14,751 |
|
1.12 |
% |
Savings accounts |
|
2,900,649 |
|
|
5,655 |
|
0.78 |
% |
|
|
2,843,788 |
|
|
4,848 |
|
0.68 |
% |
Money market deposit accounts |
|
2,948,294 |
|
|
14,393 |
|
1.96 |
% |
|
|
2,911,054 |
|
|
13,600 |
|
1.85 |
% |
Certificate accounts |
|
3,000,713 |
|
|
31,175 |
|
4.18 |
% |
|
|
2,872,192 |
|
|
29,563 |
|
4.08 |
% |
Total core deposits |
|
20,091,905 |
|
|
67,141 |
|
1.34 |
% |
|
|
20,135,437 |
|
|
62,762 |
|
1.24 |
% |
Wholesale deposits 6 |
|
3,965 |
|
|
55 |
|
5.50 |
% |
|
|
53,841 |
|
|
722 |
|
5.32 |
% |
Repurchase agreements |
|
1,513,397 |
|
|
12,598 |
|
3.35 |
% |
|
|
1,488,419 |
|
|
12,229 |
|
3.26 |
% |
FHLB advances |
|
350,754 |
|
|
4,249 |
|
4.79 |
% |
|
|
— |
|
|
— |
|
— |
% |
FRB Bank Term Funding |
|
2,483,077 |
|
|
27,097 |
|
4.39 |
% |
|
|
2,740,000 |
|
|
30,228 |
|
4.38 |
% |
Subordinated debentures and other borrowed funds |
|
218,271 |
|
|
1,782 |
|
3.28 |
% |
|
|
211,570 |
|
|
1,099 |
|
2.06 |
% |
Total funding liabilities |
|
24,661,369 |
|
|
112,922 |
|
1.84 |
% |
|
|
24,629,267 |
|
|
107,040 |
|
1.72 |
% |
Other liabilities |
|
356,554 |
|
|
|
|
|
|
332,740 |
|
|
|
|
Total liabilities |
|
25,017,923 |
|
|
|
|
|
|
24,962,007 |
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
3,086,923 |
|
|
|
|
|
|
2,913,714 |
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
28,104,846 |
|
|
|
|
|
$ |
27,875,721 |
|
|
|
|
Net interest income
(tax-equivalent) |
|
|
$ |
170,469 |
|
|
|
|
|
$ |
170,066 |
|
|
Net interest spread
(tax-equivalent) |
|
|
|
|
2.47 |
% |
|
|
|
|
|
2.45 |
% |
Net interest margin
(tax-equivalent) |
|
|
|
|
2.59 |
% |
|
|
|
|
|
2.56 |
% |
______________________________
1 |
|
Includes tax effect of $1.6 million and $1.4 million on tax-exempt
municipal loan and lease income for the three months ended
March 31, 2024 and December 31, 2023, respectively. |
2 |
|
Total loans are gross of the allowance for credit 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 $2.2 million and $2.0 million on tax-exempt
debt securities income for the three months ended March 31,
2024 and December 31, 2023, respectively. |
4 |
|
Includes interest income of $15.3 million and $17.7 million on
average interest-bearing cash balances of $1.12 billion and $1.29
billion for the three months ended March 31, 2024 and
December 31, 2023, respectively. |
5 |
|
Includes tax effect of $215 thousand and $215 thousand on federal
income tax credits for the three months ended March 31, 2024
and December 31, 2023, respectively. |
6 |
|
Wholesale deposits include brokered deposits classified as NOW,
DDA, money market deposit and certificate accounts with contractual
maturities. |
|
Glacier Bancorp, Inc.Average Balance
Sheets (continued) |
|
|
Three Months ended |
|
March 31, 2024 |
|
March 31, 2023 |
(Dollars in thousands) |
AverageBalance |
|
Interest &Dividends |
|
AverageYield/Rate |
|
AverageBalance |
|
Interest &Dividends |
|
AverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans |
$ |
1,747,184 |
|
$ |
20,764 |
|
4.75 |
% |
|
$ |
1,493,938 |
|
$ |
15,838 |
|
4.24 |
% |
Commercial loans 1 |
|
13,513,426 |
|
|
183,045 |
|
5.45 |
% |
|
|
12,655,551 |
|
|
157,456 |
|
5.05 |
% |
Consumer and other loans |
|
1,283,388 |
|
|
20,948 |
|
6.56 |
% |
|
|
1,207,315 |
|
|
16,726 |
|
5.62 |
% |
Total loans 2 |
|
16,543,998 |
|
|
224,757 |
|
5.46 |
% |
|
|
15,356,804 |
|
|
190,020 |
|
5.02 |
% |
Tax-exempt debt securities 3 |
|
1,720,370 |
|
|
15,157 |
|
3.52 |
% |
|
|
1,761,533 |
|
|
16,030 |
|
3.64 |
% |
Taxable debt securities 4, 5 |
|
8,176,974 |
|
|
43,477 |
|
2.13 |
% |
|
|
8,052,662 |
|
|
31,084 |
|
1.54 |
% |
Total earning assets |
|
26,441,342 |
|
|
283,391 |
|
4.31 |
% |
|
|
25,170,999 |
|
|
237,134 |
|
3.82 |
% |
Goodwill and intangibles |
|
1,051,954 |
|
|
|
|
|
|
1,025,716 |
|
|
|
|
Non-earning assets |
|
611,550 |
|
|
|
|
|
|
478,962 |
|
|
|
|
Total assets |
$ |
28,104,846 |
|
|
|
|
|
$ |
26,675,677 |
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
$ |
5,966,546 |
|
$ |
— |
|
— |
% |
|
$ |
7,274,228 |
|
$ |
— |
|
— |
% |
NOW and DDA accounts |
|
5,275,703 |
|
|
15,918 |
|
1.21 |
% |
|
|
5,080,175 |
|
|
2,271 |
|
0.18 |
% |
Savings accounts |
|
2,900,649 |
|
|
5,655 |
|
0.78 |
% |
|
|
3,107,559 |
|
|
514 |
|
0.07 |
% |
Money market deposit accounts |
|
2,948,294 |
|
|
14,393 |
|
1.96 |
% |
|
|
3,468,953 |
|
|
5,834 |
|
0.68 |
% |
Certificate accounts |
|
3,000,713 |
|
|
31,175 |
|
4.18 |
% |
|
|
984,770 |
|
|
2,584 |
|
1.06 |
% |
Total core deposits |
|
20,091,905 |
|
|
67,141 |
|
1.34 |
% |
|
|
19,915,685 |
|
|
11,203 |
|
0.23 |
% |
Wholesale deposits 6 |
|
3,965 |
|
|
55 |
|
5.50 |
% |
|
|
120,468 |
|
|
1,342 |
|
4.52 |
% |
Repurchase agreements |
|
1,513,397 |
|
|
12,598 |
|
3.35 |
% |
|
|
1,035,582 |
|
|
4,606 |
|
1.80 |
% |
FHLB advances |
|
350,754 |
|
|
4,249 |
|
4.79 |
% |
|
|
1,990,833 |
|
|
23,605 |
|
4.74 |
% |
FRB Bank Term Funding |
|
2,483,077 |
|
|
27,097 |
|
4.39 |
% |
|
|
280,944 |
|
|
3,032 |
|
4.32 |
% |
Subordinated debentures and other borrowed funds |
|
218,271 |
|
|
1,782 |
|
3.28 |
% |
|
|
209,547 |
|
|
1,908 |
|
3.69 |
% |
Total funding liabilities |
|
24,661,369 |
|
|
112,922 |
|
1.84 |
% |
|
|
23,553,059 |
|
|
45,696 |
|
0.79 |
% |
Other liabilities |
|
356,554 |
|
|
|
|
|
|
217,245 |
|
|
|
|
Total liabilities |
|
25,017,923 |
|
|
|
|
|
|
23,770,304 |
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
3,086,923 |
|
|
|
|
|
|
2,905,373 |
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
28,104,846 |
|
|
|
|
|
$ |
26,675,677 |
|
|
|
|
Net interest income
(tax-equivalent) |
|
|
$ |
170,469 |
|
|
|
|
|
$ |
191,438 |
|
|
Net interest spread
(tax-equivalent) |
|
|
|
|
2.47 |
% |
|
|
|
|
|
3.03 |
% |
Net interest margin
(tax-equivalent) |
|
|
|
|
2.59 |
% |
|
|
|
|
|
3.08 |
% |
______________________________
1 |
|
Includes tax effect of $1.6 million and $1.8 million on tax-exempt
municipal loan and lease income for the three months ended
March 31, 2024 and 2023, respectively. |
2 |
|
Total loans are gross of the allowance for credit 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 $2.2 million and $3.3 million on tax-exempt
debt securities income for the three months ended March 31,
2024 and 2023, respectively. |
4 |
|
Includes interest income of $15.3 million and $2.1 million on
average interest-bearing cash balances of $1.12 billion and $176.9
million for the three months ended March 31, 2024 and 2023,
respectively. |
5 |
|
Includes tax effect of $215 thousand and $215 thousand on federal
income tax credits for the three months ended March 31, 2024
and 2023, respectively. |
6 |
|
Wholesale deposits include brokered deposits classified as NOW,
DDA, money market deposit and certificate accounts with contractual
maturities. |
|
Glacier Bancorp, Inc.Loan Portfolio by
Regulatory Classification |
|
|
Loans Receivable, by Loan Type |
|
% Change from |
(Dollars in thousands) |
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
Dec 31,2023 |
|
Mar 31,2023 |
Custom and owner occupied construction |
$ |
273,835 |
|
|
$ |
290,572 |
|
|
$ |
295,604 |
|
|
(6 |
)% |
|
(7 |
)% |
Pre-sold and spec
construction |
|
223,294 |
|
|
|
236,596 |
|
|
|
312,715 |
|
|
(6 |
)% |
|
(29 |
)% |
Total residential construction |
|
497,129 |
|
|
|
527,168 |
|
|
|
608,319 |
|
|
(6 |
)% |
|
(18 |
)% |
Land development |
|
215,828 |
|
|
|
232,966 |
|
|
|
230,823 |
|
|
(7 |
)% |
|
(6 |
)% |
Consumer land or lots |
|
188,635 |
|
|
|
187,545 |
|
|
|
187,498 |
|
|
1 |
% |
|
1 |
% |
Unimproved land |
|
103,032 |
|
|
|
87,739 |
|
|
|
104,811 |
|
|
17 |
% |
|
(2 |
)% |
Developed lots for operative
builders |
|
47,591 |
|
|
|
56,142 |
|
|
|
69,896 |
|
|
(15 |
)% |
|
(32 |
)% |
Commercial lots |
|
92,748 |
|
|
|
87,185 |
|
|
|
91,780 |
|
|
6 |
% |
|
1 |
% |
Other construction |
|
915,782 |
|
|
|
900,547 |
|
|
|
965,244 |
|
|
2 |
% |
|
(5 |
)% |
Total land, lot, and other construction |
|
1,563,616 |
|
|
|
1,552,124 |
|
|
|
1,650,052 |
|
|
1 |
% |
|
(5 |
)% |
Owner occupied |
|
3,057,348 |
|
|
|
3,035,768 |
|
|
|
2,885,798 |
|
|
1 |
% |
|
6 |
% |
Non-owner occupied |
|
3,920,696 |
|
|
|
3,742,916 |
|
|
|
3,631,158 |
|
|
5 |
% |
|
8 |
% |
Total commercial real estate |
|
6,978,044 |
|
|
|
6,778,684 |
|
|
|
6,516,956 |
|
|
3 |
% |
|
7 |
% |
Commercial and
industrial |
|
1,371,201 |
|
|
|
1,363,479 |
|
|
|
1,353,919 |
|
|
1 |
% |
|
1 |
% |
Agriculture |
|
929,420 |
|
|
|
772,458 |
|
|
|
715,863 |
|
|
20 |
% |
|
30 |
% |
1st lien |
|
2,276,638 |
|
|
|
2,127,989 |
|
|
|
1,864,294 |
|
|
7 |
% |
|
22 |
% |
Junior lien |
|
51,579 |
|
|
|
47,230 |
|
|
|
42,397 |
|
|
9 |
% |
|
22 |
% |
Total 1-4 family |
|
2,328,217 |
|
|
|
2,175,219 |
|
|
|
1,906,691 |
|
|
7 |
% |
|
22 |
% |
Multifamily
residential |
|
881,117 |
|
|
|
796,538 |
|
|
|
649,148 |
|
|
11 |
% |
|
36 |
% |
Home equity lines of
credit |
|
947,652 |
|
|
|
979,891 |
|
|
|
893,037 |
|
|
(3 |
)% |
|
6 |
% |
Other consumer |
|
223,566 |
|
|
|
229,154 |
|
|
|
224,125 |
|
|
(2 |
)% |
|
— |
% |
Total consumer |
|
1,171,218 |
|
|
|
1,209,045 |
|
|
|
1,117,162 |
|
|
(3 |
)% |
|
5 |
% |
States and political
subdivisions |
|
848,454 |
|
|
|
834,947 |
|
|
|
806,878 |
|
|
2 |
% |
|
5 |
% |
Other |
|
191,121 |
|
|
|
204,111 |
|
|
|
208,085 |
|
|
(6 |
)% |
|
(8 |
)% |
Total loans receivable, including loans held for sale |
|
16,759,537 |
|
|
|
16,213,773 |
|
|
|
15,533,073 |
|
|
3 |
% |
|
8 |
% |
Less loans held for
sale 1 |
|
(27,035 |
) |
|
|
(15,691 |
) |
|
|
(14,461 |
) |
|
72 |
% |
|
87 |
% |
Total loans receivable |
$ |
16,732,502 |
|
|
$ |
16,198,082 |
|
|
$ |
15,518,612 |
|
|
3 |
% |
|
8 |
% |
______________________________
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-AccrualLoans |
|
AccruingLoans 90Daysor More PastDue |
|
Other real estate owned and foreclosed assets |
(Dollars in thousands) |
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
Mar 31,2024 |
|
Mar 31,2024 |
|
Mar 31,2024 |
Custom and owner occupied construction |
$ |
210 |
|
214 |
|
220 |
|
210 |
|
— |
|
— |
Pre-sold and spec
construction |
|
1,049 |
|
763 |
|
1,548 |
|
— |
|
1,049 |
|
— |
Total residential construction |
|
1,259 |
|
977 |
|
1,768 |
|
210 |
|
1,049 |
|
— |
Land development |
|
28 |
|
35 |
|
129 |
|
28 |
|
— |
|
— |
Consumer land or lots |
|
144 |
|
96 |
|
112 |
|
144 |
|
— |
|
— |
Unimproved land |
|
— |
|
— |
|
51 |
|
— |
|
— |
|
— |
Developed lots for operative
builders |
|
608 |
|
608 |
|
607 |
|
— |
|
608 |
|
— |
Commercial lots |
|
2,205 |
|
47 |
|
188 |
|
2,158 |
|
47 |
|
— |
Other construction |
|
— |
|
— |
|
12,884 |
|
— |
|
— |
|
— |
Total land, lot and other construction |
|
2,985 |
|
786 |
|
13,971 |
|
2,330 |
|
655 |
|
— |
Owner occupied |
|
1,501 |
|
1,838 |
|
2,682 |
|
799 |
|
270 |
|
432 |
Non-owner occupied |
|
8,853 |
|
11,016 |
|
4,544 |
|
8,596 |
|
257 |
|
— |
Total commercial real estate |
|
10,354 |
|
12,854 |
|
7,226 |
|
9,395 |
|
527 |
|
432 |
Commercial and
Industrial |
|
1,698 |
|
1,971 |
|
2,001 |
|
1,100 |
|
447 |
|
151 |
Agriculture |
|
2,855 |
|
2,558 |
|
2,573 |
|
2,426 |
|
429 |
|
— |
1st lien |
|
2,930 |
|
2,664 |
|
2,015 |
|
2,540 |
|
390 |
|
— |
Junior lien |
|
69 |
|
180 |
|
111 |
|
44 |
|
25 |
|
— |
Total 1-4 family |
|
2,999 |
|
2,844 |
|
2,126 |
|
2,584 |
|
415 |
|
— |
Multifamily
residential |
|
395 |
|
395 |
|
— |
|
395 |
|
— |
|
— |
Home equity lines of
credit |
|
1,892 |
|
2,043 |
|
1,225 |
|
1,727 |
|
165 |
|
— |
Other consumer |
|
927 |
|
1,187 |
|
1,062 |
|
571 |
|
48 |
|
308 |
Total consumer |
|
2,819 |
|
3,230 |
|
2,287 |
|
2,298 |
|
213 |
|
308 |
Other |
|
61 |
|
16 |
|
27 |
|
— |
|
61 |
|
— |
Total |
$ |
25,425 |
|
25,631 |
|
31,979 |
|
20,738 |
|
3,796 |
|
891 |
|
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 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
Dec 31,2023 |
|
Mar 31,2023 |
Custom and owner occupied construction |
$ |
4,784 |
|
$ |
2,549 |
|
$ |
1,624 |
|
88% |
|
195% |
Pre-sold and spec
construction |
|
1,181 |
|
|
1,219 |
|
|
— |
|
(3)% |
|
n/m |
Total residential construction |
|
5,965 |
|
|
3,768 |
|
|
1,624 |
|
58% |
|
267% |
Land development |
|
59 |
|
|
163 |
|
|
946 |
|
(64)% |
|
(94)% |
Consumer land or lots |
|
332 |
|
|
624 |
|
|
668 |
|
(47)% |
|
(50)% |
Unimproved land |
|
575 |
|
|
— |
|
|
— |
|
n/m |
|
n/m |
Commercial lots |
|
1,225 |
|
|
2,159 |
|
|
— |
|
(43)% |
|
n/m |
Other construction |
|
1,248 |
|
|
— |
|
|
5,264 |
|
n/m |
|
(76)% |
Total land, lot and other construction |
|
3,439 |
|
|
2,946 |
|
|
6,878 |
|
17% |
|
(50)% |
Owner occupied |
|
2,991 |
|
|
2,222 |
|
|
1,783 |
|
35% |
|
68% |
Non-owner occupied |
|
18,118 |
|
|
14,471 |
|
|
429 |
|
25% |
|
4,123% |
Total commercial real estate |
|
21,109 |
|
|
16,693 |
|
|
2,212 |
|
26% |
|
854% |
Commercial and
industrial |
|
14,806 |
|
|
12,905 |
|
|
3,677 |
|
15% |
|
303% |
Agriculture |
|
3,922 |
|
|
594 |
|
|
947 |
|
560% |
|
314% |
1st lien |
|
5,626 |
|
|
3,768 |
|
|
3,321 |
|
49% |
|
69% |
Junior lien |
|
145 |
|
|
1 |
|
|
385 |
|
14,400% |
|
(62)% |
Total 1-4 family |
|
5,771 |
|
|
3,769 |
|
|
3,706 |
|
53% |
|
56% |
Multifamily
Residential |
|
— |
|
|
— |
|
|
201 |
|
n/m |
|
(100)% |
Home equity lines of
credit |
|
3,668 |
|
|
4,518 |
|
|
2,804 |
|
(19)% |
|
31% |
Other consumer |
|
1,948 |
|
|
3,264 |
|
|
1,598 |
|
(40)% |
|
22% |
Total consumer |
|
5,616 |
|
|
7,782 |
|
|
4,402 |
|
(28)% |
|
28% |
Other |
|
1,795 |
|
|
1,510 |
|
|
1,346 |
|
19% |
|
33% |
Total |
$ |
62,423 |
|
$ |
49,967 |
|
$ |
24,993 |
|
25% |
|
150% |
______________________________
n/m - not measurable
|
Glacier Bancorp, Inc.Credit Quality
Summary by Regulatory Classification (continued) |
|
|
Net Charge-Offs (Recoveries), Year-to-DatePeriod
Ending, By Loan Type |
|
Charge-Offs |
|
Recoveries |
(Dollars in thousands) |
Mar 31,2024 |
|
Dec 31,2023 |
|
Mar 31,2023 |
|
Mar 31,2024 |
|
Mar 31,2024 |
Pre-sold and spec construction |
|
(4 |
) |
|
(15 |
) |
|
(4 |
) |
|
— |
|
4 |
Total residential construction |
|
(4 |
) |
|
(15 |
) |
|
(4 |
) |
|
— |
|
4 |
Land development |
|
(1 |
) |
|
(135 |
) |
|
— |
|
|
— |
|
1 |
Consumer land or lots |
|
(1 |
) |
|
(19 |
) |
|
— |
|
|
— |
|
1 |
Other construction |
|
— |
|
|
889 |
|
|
— |
|
|
— |
|
— |
Total land, lot and other construction |
|
(2 |
) |
|
735 |
|
|
— |
|
|
— |
|
2 |
Owner occupied |
|
(3 |
) |
|
(59 |
) |
|
(68 |
) |
|
— |
|
3 |
Non-owner occupied |
|
(1 |
) |
|
799 |
|
|
298 |
|
|
— |
|
1 |
Total commercial real estate |
|
(4 |
) |
|
740 |
|
|
230 |
|
|
— |
|
4 |
Commercial and
industrial |
|
328 |
|
|
364 |
|
|
(382 |
) |
|
674 |
|
346 |
Agriculture |
|
68 |
|
|
— |
|
|
— |
|
|
68 |
|
— |
1st lien |
|
(4 |
) |
|
66 |
|
|
44 |
|
|
— |
|
4 |
Junior lien |
|
(5 |
) |
|
24 |
|
|
(5 |
) |
|
10 |
|
15 |
Total 1-4 family |
|
(9 |
) |
|
90 |
|
|
39 |
|
|
10 |
|
19 |
Multifamily
residential |
|
— |
|
|
(136 |
) |
|
— |
|
|
— |
|
— |
Home equity lines of
credit |
|
5 |
|
|
(6 |
) |
|
(39 |
) |
|
15 |
|
10 |
Other consumer |
|
251 |
|
|
1,097 |
|
|
125 |
|
|
342 |
|
91 |
Total consumer |
|
256 |
|
|
1,091 |
|
|
86 |
|
|
357 |
|
101 |
Other |
|
2,439 |
|
|
7,447 |
|
|
1,970 |
|
|
3,186 |
|
747 |
Total |
$ |
3,072 |
|
|
10,316 |
|
|
1,939 |
|
|
4,295 |
|
1,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Visit our website at www.glacierbancorp.com
CONTACT: Randall M. Chesler, CEO(406)
751-4722Ron J. Copher, CFO(406) 751-7706
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