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Form 8-K GLACIER BANCORP INC For: Jul 23

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July 23, 2015 5:19 PM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________
FORM 8-K
____________________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 23, 2015 

____________________________________________________________
Glacier Bancorp, Inc.
(Exact name of registrant as specified in its charter)

Montana
000-18911
81-0519541
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

49 Commons Loop, Kalispell, Montana
59901
(Address of principal executive offices)
(Zip Code)

(406) 756-4200
Registrant's telephone number, including area code

Not Applicable
(Former name or former address, if changed since last report)

____________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
[   ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[   ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[   ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[   ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 2.02. Results of Operations and Financial Condition

On July 23, 2015, the Company issued a press release announcing its financial results for the quarter ended June 30, 2015. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein in its entirety by reference.

The information in this Item 2.02 and the Exhibit attached hereto is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such document or filing.

Item 9.01. Financial Statements and Exhibits

(a)    Financial statements of businesses acquired - not applicable.

(b)    Pro forma financial information - not applicable.

(d)
Exhibit 99.1 - Press Release dated July 23, 2015, announcing financial results for the quarter ended June 30, 2015.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
Glacier Bancorp, Inc.
 
 
(Registrant)
July 23, 2015
 
/s/   MICHAEL J. BLODNICK
(Date)
 
Michael J. Blodnick
President and Chief Executive Officer






NEWS RELEASE

FOR IMMEDIATE RELEASE
CONTACT: Michael J. Blodnick
(406) 751-4701
Ron J. Copher
(406) 751-7706

GLACIER BANCORP, INC. ANNOUNCES
RESULTS FOR THE QUARTER ENDED JUNE 30, 2015

HIGHLIGHTS:
•
Net income of $29.3 million for the current quarter, an increase of 6 percent from the prior quarter $27.7 million net income and an increase of 2 percent from the prior year second quarter net income of $28.7 million.
•
Current quarter diluted earnings per share of $0.39, an increase of 5 percent from the prior quarter $0.37 diluted earnings per share and an increase of 3 percent from the prior year second quarter diluted earnings per share of $0.38.
•
The loan portfolio increased $120 million, or 10 percent annualized, during the current quarter.
•
Non-interest bearing deposits of $1.731 billion, increased $55.6 million, or 13 percent annualized, during the current quarter.
•
Gain of $7.6 million on the sale of residential real estate loans in the current quarter increased $2.2 million, or 40 percent, over the prior quarter and $2.8 million, or 59 percent, over the prior year second quarter.
•
Dividend declared of $0.19 per share, an increase of $0.01 per share, or 6 percent, over the prior quarter. The dividend was the 121st consecutive quarterly dividend declared by the Company.
•
Announced Randall (“Randy”) M. Chesler to become president of Glacier Bank and to succeed Mick Blodnick as Chief Executive Officer of Glacier Bancorp, Inc. in 2017.
•
The Company successfully converted Community Bank, Inc.’s core system over to the Company’s core system during the current quarter.


1


Results Summary
 
Three Months ended
 
Six Months ended
(Dollars in thousands, except per share data)
Jun 30,
2015
 
Mar 31,
2015
 
Jun 30,
2014
 
Jun 30,
2015
 
Jun 30,
2014
Net income
$
29,335

 
27,670

 
28,677

 
57,005

 
55,407

Diluted earnings per share
$
0.39

 
0.37

 
0.38

 
0.76

 
0.74

Return on average assets (annualized)
1.39
%
 
1.36
%
 
1.47
%
 
1.37
%
 
1.43
%
Return on average equity (annualized)
11.05
%
 
10.72
%
 
11.45
%
 
10.89
%
 
11.25
%

KALISPELL, MONTANA, July 23, 2015 - Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net income of $29.3 million for the current quarter, an increase of $658 thousand, or 2 percent, from the $28.7 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.39 per share, an increase of $0.01, or 3 percent, from the prior year second quarter diluted earnings per share of $0.38. Included in the current quarter non-interest expense was $1.4 million of one-time expenses including conversion related expenses. “It was another very strong quarter for earnings especially in the area of non-interest income as we exceeded our projections in most categories,” said Mick Blodnick, President and Chief Executive Officer.  “We generated excellent organic loan growth, once again allowing us to reduce the investment portfolio and still increase net interest income.  Hopefully, the pace of loan growth we achieved in the first half of the year can be carried through the last half,” Blodnick said.

Net income for the six months ended June 30, 2015 was $57.0 million, an increase of $1.6 million, or 3 percent, from the $55.4 million of net income for the same period in the prior year. Diluted earnings per share for the six months ended June 30, 2015 was $0.76 per share, an increase of $0.02, or 3 percent, from the diluted earnings per share for the same period in the prior year.
 
On February 28, 2015, the Company completed the acquisition of Montana Community Banks, Inc. and its subsidiary, Community Bank, Inc. (collectively, “CB”). The Company successfully converted CB’s core system over to the Company’s core system during the current quarter. The Company incurred $833 thousand of legal and professional expenses in connection with the CB acquisition and conversion during the current year. Goodwill of $1.1 million resulted from the acquisition which was based on the estimated fair value of the assets acquired and liabilities assumed. The Company’s results of operations and financial condition include the acquisition of CB from the acquisition date and the following table provides information on the fair value of selected classifications of assets and liabilities acquired:

(Dollars in thousands)
February 28,
2015
Total assets
$
175,774

Investment securities
42,350

Loans receivable
84,689

Non-interest bearing deposits
41,779

Interest bearing deposits
105,041

Federal Home Loan Bank advances and other borrowed funds
3,292



2


Asset Summary
 
 
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands)
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
Cash and cash equivalents
$
355,719

 
183,466

 
442,409

 
202,358

 
172,253

 
(86,690
)
 
153,361

Investment securities, available-for-sale
2,361,830

 
2,544,093

 
2,387,428

 
2,559,411

 
(182,263
)
 
(25,598
)
 
(197,581
)
Investment securities, held-to-maturity
593,314

 
570,285

 
520,997

 
483,557

 
23,029

 
72,317

 
109,757

Total investment securities
2,955,144

 
3,114,378

 
2,908,425

 
3,042,968

 
(159,234
)
 
46,719

 
(87,824
)
Loans receivable
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
635,674

 
637,465

 
611,463

 
587,340

 
(1,791
)
 
24,211

 
48,334

Commercial
3,529,274

 
3,426,016

 
3,263,448

 
3,023,915

 
103,258

 
265,826

 
505,359

Consumer and other
642,483

 
624,188

 
613,184

 
592,024

 
18,295

 
29,299

 
50,459

Loans receivable
4,807,431

 
4,687,669

 
4,488,095

 
4,203,279

 
119,762

 
319,336

 
604,152

Allowance for loan and lease losses
(130,519
)
 
(129,856
)
 
(129,753
)
 
(130,636
)
 
(663
)
 
(766
)
 
117

Loans receivable, net
4,676,912

 
4,557,813

 
4,358,342

 
4,072,643

 
119,099

 
318,570

 
604,269

Other assets
602,035

 
619,439

 
597,331

 
572,125

 
(17,404
)
 
4,704

 
29,910

Total assets
$
8,589,810

 
8,475,096

 
8,306,507

 
7,890,094

 
114,714

 
283,303

 
699,716


Total investment securities decreased $159 million, or 5 percent, during the current quarter and decreased $88 million, or 3 percent, from June 30, 2014. The decrease in the investment portfolio during the current quarter was the result of the Company redeploying security payments into the loan portfolio, although the Company continues to selectively purchase investment securities in the volatile market with its excess liquidity. Investment securities represented 34 percent of total assets at June 30, 2015 compared to 35 percent at December 31, 2014 and 39 percent at June 30, 2014.

The loan portfolio increased $120 million, or 3 percent, during the current quarter. The loan category with the largest dollar and percent increase during the current quarter was commercial loans which increased $103 million, or 3 percent. Excluding the CB acquisition and the First National Bank of the Rockies (“FNBR”) acquisition in August 2014, the loan portfolio increased $382 million, or 9 percent, since June 30, 2014 with $322 million of the increase coming from growth in commercial loans.

During the current quarter, the merger of the Federal Home Loan Bank (“FHLB”) of Seattle and the FHLB of Des Moines was completed with minimal disruption to the Company. As a result of the merger, FHLB of Seattle stock of $29.4 million was redeemed by FHLB of Des Moines.


3


Credit Quality Summary
 
At or for the Six Months ended
 
At or for the Three Months ended
 
At or for the Year ended
 
At or for the Six Months ended
(Dollars in thousands)
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
Allowance for loan and lease losses
 
 
 
 
 
 
 
Balance at beginning of period
$
129,753

 
129,753

 
130,351

 
130,351

Provision for loan losses
1,047

 
765

 
1,912

 
1,361

Charge-offs
(2,598
)
 
(1,297
)
 
(7,603
)
 
(3,324
)
Recoveries
2,317

 
635

 
5,093

 
2,248

Balance at end of period
$
130,519

 
129,856

 
129,753

 
130,636

Other real estate owned
$
26,686

 
28,124

 
27,804

 
26,338

Accruing loans 90 days or more past due
618

 
2,357

 
214

 
980

Non-accrual loans
56,918

 
60,287

 
61,882

 
75,147

Total non-performing assets 1
$
84,222

 
90,768

 
89,900

 
102,465

Non-performing assets as a percentage of subsidiary assets
0.98
%
 
1.07
%
 
1.08
%
 
1.30
%
Allowance for loan and lease losses as a percentage of non-performing loans
227
%
 
207
%
 
209
%
 
172
%
Allowance for loan and lease losses as a percentage of total loans
2.71
%
 
2.77
%
 
2.89
%
 
3.11
%
Net charge-offs as a percentage of total loans
0.01
%
 
0.01
%
 
0.06
%
 
0.03
%
Accruing loans 30-89 days past due
$
28,474

 
33,450

 
25,904

 
18,592

Accruing troubled debt restructurings
$
64,336

 
69,397

 
69,129

 
73,981

Non-accrual troubled debt restructurings
$
32,664

 
34,237

 
33,714

 
35,786

__________ 
1 As of June 30, 2015, non-performing assets have not been reduced by U.S. government guarantees of $5.0 million.

Non-performing assets at June 30, 2015 were $84.2 million, a decrease of $6.5 million, or 7 percent, during the current quarter. Non-performing assets at June 30, 2015 decreased $18.2 million, or 18 percent, from a year ago. Land, lot and other construction loans (i.e., regulatory classification) continues to be the largest category and was $42.8 million, or 51 percent, of the non-performing assets at June 30, 2015. The Company has continued to make progress by reducing this category the past few years and the category decreased $2.8 million, or 6 percent, from the prior quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $28.5 million at June 30, 2015 decreased $5.0 million from the prior quarter and increased $9.9 million from the prior year second quarter.

The allowance for loan and lease losses (“allowance”) was $131 million at June 30, 2015 and continued to remain stable compared to the prior periods. The allowance was 2.71 percent of total loans outstanding at June 30, 2015 compared to 2.89 percent at December 31, 2014 and 3.11 percent for the same quarter last year. 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 bank acquisitions as a result of the acquired loans recorded at fair value.


4


Credit Quality Trends and Provision for Loan Losses
(Dollars in thousands)
Provision
for Loan
Losses
 
Net
(Recoveries) Charge-Offs
 
ALLL
as a Percent
of Loans
 
Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
 
Non-Performing
Assets to
Total Subsidiary
Assets
Second quarter 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
%
Fourth quarter 2013
1,802

 
2,216

 
3.21
%
 
0.79
%
 
1.39
%
Third quarter 2013
1,907

 
2,025

 
3.27
%
 
0.66
%
 
1.56
%

Net recoveries of loans for the current quarter were $381 thousand compared to net charge-offs of $662 thousand for the prior quarter and $332 thousand from the same quarter last year. The current quarter provision for loan losses of $282 thousand decreased $483 thousand from the prior quarter and increased $43 thousand from the prior year second quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of the loan loss provision. 

Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on regulatory classification is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.

Liability Summary
 
 
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands)
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
Non-interest bearing deposits
$
1,731,015

 
1,675,451

 
1,632,403

 
1,464,938

 
55,564

 
98,612

 
266,077

Interest bearing deposits
4,827,642

 
4,783,341

 
4,712,809

 
4,280,898

 
44,301

 
114,833

 
546,744

Repurchase agreements
408,935

 
425,652

 
397,107

 
315,240

 
(16,717
)
 
11,828

 
93,695

Federal Home Loan Bank advances
329,470

 
298,148

 
296,944

 
607,305

 
31,322

 
32,526

 
(277,835
)
Other borrowed funds
6,665

 
6,703

 
7,311

 
7,367

 
(38
)
 
(646
)
 
(702
)
Subordinated debentures
125,776

 
125,741

 
125,705

 
125,633

 
35

 
71

 
143

Other liabilities
103,856

 
106,536

 
106,181

 
78,698

 
(2,680
)
 
(2,325
)
 
25,158

Total liabilities
$
7,533,359

 
7,421,572

 
7,278,460

 
6,880,079

 
111,787

 
254,899

 
653,280


Non-interest bearing deposits of $1.731 billion at June 30, 2015, increased $55.6 million, or 3 percent, from the prior quarter. Excluding the CB and FNBR acquisitions, non-interest bearing deposits increased $144 million, or 10 percent, from June 30, 2014. Interest bearing deposits of $4.828 billion at June 30, 2015 included $197 million of wholesale deposits (i.e., brokered deposits classified as NOW, money market deposits and certificate accounts). Excluding the $14.1 million decrease in wholesale deposits, interest bearing deposits at June 30, 2015 increased $58.4 million, or 1 percent, during the current quarter. Excluding the CB and FNBR acquisitions and the decrease of $18.1 million in wholesale deposits, interest bearing deposits at June 30, 2015 increased $230 million, or 6 percent, from June 30, 2014.

5


FHLB advances of $329 million at June 30, 2015 increased $31.3 million, or 11 percent, during the current quarter as the Company took advantage of attractive term borrowings that were available from the FHLB of Seattle prior to the merger with FHLB of Des Moines. FHLB advances as of June 30, 2015, decreased $278 million, or 46 percent, from June 30, 2014 as growth in deposits and continued balance sheet restructuring reduced the need for additional borrowings.

Stockholders’ Equity Summary
 
 
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands, except per share data)
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
Common equity
$
1,051,011

 
1,035,497

 
1,010,303

 
985,809

 
15,514

 
40,708

 
65,202

Accumulated other comprehensive income
5,440

 
18,027

 
17,744

 
24,206

 
(12,587
)
 
(12,304
)
 
(18,766
)
Total stockholders’ equity
1,056,451

 
1,053,524

 
1,028,047

 
1,010,015

 
2,927

 
28,404

 
46,436

Goodwill and core deposit intangible, net
(142,344
)
 
(143,099
)
 
(140,606
)
 
(137,815
)
 
755

 
(1,738
)
 
(4,529
)
Tangible stockholders’ equity
$
914,107

 
910,425

 
887,441

 
872,200

 
3,682

 
26,666

 
41,907

Stockholders’ equity to total assets
12.30
%
 
12.43
%
 
12.38
%
 
12.80
%
 
 
 
 
 
 
Tangible stockholders’ equity to total tangible assets
10.82
%
 
10.93
%
 
10.87
%
 
11.25
%
 
 
 
 
 
 
Book value per common share
$
13.99

 
13.95

 
13.70

 
13.56

 
0.04

 
0.29

 
0.43

Tangible book value per common share
$
12.10

 
12.05

 
11.83

 
11.71

 
0.05

 
0.27

 
0.39

Market price per share at end of period
$
29.42

 
25.15

 
27.77

 
28.38

 
4.27

 
1.65

 
1.04


Tangible stockholders’ equity of $914 million at June 30, 2015 increased $3.7 million, or less than 1 percent, from the prior quarter which was primarily the result of earnings retention which offset the decrease in accumulated other comprehensive income. Tangible stockholders’ equity increased $41.9 million from a year ago as the result of earnings retention and Company stock issued in connection with the CB and FNBR acquisitions, both of which offset the decrease in accumulated other comprehensive income. Tangible book value per common share of $12.10 increased $0.05 per share from the prior quarter and increased $0.39 per share from the prior year second quarter.

Cash Dividend
On June 30, 2015, the Company’s Board of Directors declared a cash dividend of $0.19 per share, an increase of $0.01 per share, or 6 percent, over the prior quarter. The dividend was payable July 16, 2015 to shareholders of record on July 10, 2015. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.


6


Operating Results for Three Months Ended June 30, 2015 
Compared to March 31, 2015 and June 30, 2014

Income Summary
 
Three Months ended
 
$ Change from
(Dollars in thousands)
Jun 30,
2015
 
Mar 31,
2015
 
Jun 30,
2014
 
Mar 31,
2015
 
Jun 30,
2014
Net interest income
 
 
 
 
 
 
 
 
 
Interest income
$
78,617

 
77,486

 
73,963

 
1,131

 
4,654

Interest expense
7,369

 
7,382

 
6,528

 
(13
)
 
841

Total net interest income
71,248

 
70,104

 
67,435

 
1,144

 
3,813

Non-interest income
 
 
 
 
 
 
 
 
 
Service charges, loan fees, and other fees
15,445

 
14,156

 
14,747

 
1,289

 
698

Gain on sale of loans
7,600

 
5,430

 
4,778

 
2,170

 
2,822

(Loss) gain on sale of investments
(98
)
 
5

 
(48
)
 
(103
)
 
(50
)
Other income
2,855

 
3,102

 
3,027

 
(247
)
 
(172
)
Total non-interest income
25,802

 
22,693

 
22,504

 
3,109

 
3,298

 
$
97,050

 
92,797

 
89,939

 
4,253

 
7,111

Net interest margin (tax-equivalent)
3.98
%
 
4.03
%
 
3.99
%
 
 
 
 

Net Interest Income
In the current quarter, interest income of $78.6 million increased $1.1 million, or 1 percent from the prior quarter. The current quarter increase in interest income was primarily driven by increases in interest income on commercial loans. Income on commercial loans of $40.7 million increased $1.7 million, or 4 percent, from the prior quarter. In addition, interest income increased $4.7 million, or 6 percent, over the prior year second quarter and was also attributable to higher interest income on commercial loans. The current quarter interest income on commercial loans increased $5.4 million, or 15 percent, over the prior year second quarter primarily the result of an increased volume in commercial loans. Interest income on investment securities of $22.0 million decreased $1.0 million, or 4 percent, over the prior quarter and decreased $1.9 million, or 8 percent, over the prior year second quarter principally due to a decreased volume of investment securities.

The current quarter interest expense of $7.4 million decreased $13 thousand, or less than 1 percent, from the prior quarter. The current quarter interest expense increased $841 thousand from the prior year second quarter, such increase attributed to the interest expense associated with the interest rate swap which started interest expense accruals in the fourth quarter of 2014. The total cost of funding (including non-interest bearing deposits) for the current quarter was 40 basis points compared to 42 basis points for the prior quarter and 39 basis points in the prior year second quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.98 percent compared to 4.03 percent in the prior quarter. The 5 basis points decrease in the current quarter net interest margin was primarily driven by an 8 basis points reduction attributable to the investment portfolio. The reduction in the investment portfolio coupled with additional liquidity caused the cash balance to build through the quarter. The Company’s current quarter net interest margin decreased 1 basis point from the prior year second quarter net interest margin of 3.99 percent. “The Bank divisions continue to achieve strong growth in their non-interest bearing deposit balances as well as low-cost interest bearing deposit balances,” said

7


Ron Copher, Chief Financial Officer. “Moreover, the Bank divisions maintained discipline over the pricing of their interest bearing balances,” Copher said.

Non-interest Income
Non-interest income for the current quarter totaled $25.8 million, an increase of $3.1 million, or 14 percent, over the prior quarter and an increase of $3.3 million, or 15 percent, over the same quarter last year. Service fee income of $15.4 million, increased $1.3 million, or 9 percent, from the prior quarter as a result of seasonal activity and increased $698 thousand, or 5 percent, from the prior year second quarter as a result of the increased number of deposit accounts. “Fee income has been exceptional through the first six months of the year, but especially the most recent quarter,” said Blodnick.  “All the hard work our banks have done the past five years to build their customer base is paying off. A larger customer base allows us more engagement with these individuals and businesses and the opportunity to provide more products and services resulting in greater revenue.” Gain of $7.6 million on the sale of the residential loans in the current quarter increased $2.2 million, or 40 percent, from the prior quarter and increased $2.8 million, or 59 percent, from the prior year second quarter as a result of an increase in mortgage refinancing and purchase activity. Other non-interest income for the current quarter decreased $247 thousand, or 8 percent, over the prior quarter and decreased $172 thousand, or 6 percent, over the prior year second quarter. Included in other income was operating revenue of $5 thousand from other real estate owned (“OREO”) and a gain of $318 thousand from the sale of OREO, a combined total of $323 thousand for the current quarter compared to $417 thousand for the prior quarter and $615 thousand for the prior year second quarter.

Non-interest Expense Summary
 
Three Months ended
 
$ Change from
(Dollars in thousands)
Jun 30,
2015
 
Mar 31,
2015
 
Jun 30,
2014
 
Mar 31,
2015
 
Jun 30,
2014
Compensation and employee benefits
$
32,729

 
32,244

 
28,988

 
485

 
3,741

Occupancy and equipment
7,810

 
7,362

 
6,733

 
448

 
1,077

Advertising and promotions
2,240

 
1,927

 
1,948

 
313

 
292

Data processing
1,593

 
1,249

 
2,032

 
344

 
(439
)
Other real estate owned
1,377

 
758

 
566

 
619

 
811

Regulatory assessments and insurance
1,006

 
1,305

 
1,028

 
(299
)
 
(22
)
Core deposit intangibles amortization
755

 
731

 
693

 
24

 
62

Other expenses
12,435

 
9,921

 
10,685

 
2,514

 
1,750

Total non-interest expense
$
59,945

 
55,497

 
52,673

 
4,448

 
7,272


Compensation and employee benefits for the current quarter increased by $485 thousand, or 2 percent, from the prior quarter due to the increased number of employees from the CB acquisition. Compensation and employee benefits for the current quarter increased by $3.7 million from the prior year second quarter due to of the increased number of employees from the CB and FNBR acquisitions and salary increases. Current quarter occupancy and equipment expense increased $1.1 million, or 16 percent, from the prior year second quarter as a result of added costs associated with the CB and FNBR acquisitions. The current quarter advertising expense increased $313 thousand, or 16 percent, from the prior quarter and increased $292 thousand, or 15 percent, as a result of the Company actively marketing to its customer base. The current quarter data processing expense increased $344 thousand, or 28 percent, from the prior quarter as a result of conversion related expenses and general increases during the current quarter. The current quarter data processing expense decreased $439 thousand, or 22 percent, from the prior year second quarter as a result of conversion related expenses in the prior year second quarter. The current quarter OREO expense of $1.4 million included $437 thousand of operating expense, $846 thousand of fair value write-downs, and $93 thousand of loss from the sales of OREO. Current quarter other expenses of $12.4 million increased by $2.5 million, or 25 percent, from the prior quarter primarily from expenses connected with

8


equity investments in New Market Tax Credits (“NMTC”) projects and conversion related expenses. The NMTC expenses are more than offset by the tax benefits included in federal income tax expense. Current quarter other expense increased $1.8 million, or 16 percent, from the prior year second quarter due to conversion related expenses.

Efficiency Ratio
The efficiency ratio for the current quarter was 55.91 percent and the prior year second quarter was 54.73 percent. The 1.18 percent increase in efficiency ratio resulted from increases in non-interest expense driven by increased compensation and other operational expenses, which exceeded the increases in net interest income from an increase in earning assets and increases in non-interest income from greater mortgage refinancing activity. The efficiency ratio was also negatively impacted by the higher efficiency ratios from the recently acquired banks; however, the Company expects synergies to be realized in the near term.

Operating Results for Six Months ended June 30, 2015
Compared to June 30, 2014

Income Summary
 
Six Months ended
 
$ Change
 
% Change
(Dollars in thousands)
Jun 30,
2015
 
Jun 30,
2014
 
Net interest income
 
 
 
 
 
 
 
Interest income
$
156,103

 
$
148,050

 
$
8,053

 
5
 %
Interest expense
14,751

 
13,168

 
1,583

 
12
 %
Total net interest income
141,352

 
134,882

 
6,470

 
5
 %
Non-interest income
 
 
 
 
 
 
 
Service charges, loan fees, and other fees
29,601

 
27,995

 
1,606

 
6
 %
Gain on sale of loans
13,030

 
8,373

 
4,657

 
56
 %
Loss on sale of investments
(93
)
 
(99
)
 
6

 
(6
)%
Other income
5,957

 
5,623

 
334

 
6
 %
Total non-interest income
48,495

 
41,892

 
6,603

 
16
 %
 
$
189,847

 
$
176,774

 
$
13,073

 
7
 %
Net interest margin (tax-equivalent)
4.00
%
 
4.01
%
 
 
 
 


9


Net Interest Income
Net interest income for the first six months of the current year was $141 million, an increase of $6.5 million, or 5 percent, over the same period last year. Interest income for the first six months of the current year increased $8.1 million, or 5 percent, from the prior year first six months and was principally due to an increase in income from commercial loans. Current year interest income of $79.7 million on commercial loans increased $9.4 million, or 13 percent, from the first half of last year and was primarily the result of an increased volume of commercial loans. Current year interest income of $44.9 million on investment securities decreased $3.3 million, or 7 percent, over the same period last year, as a result of a combined decreased rate on investment securities and decreased volume of investment securities.

Interest expense for the first six months of the current year increased $1.6 million, or 12 percent, from the prior year first six months and was due to the interest expense associated with the interest rate swap which started interest expense accruals in the fourth quarter of 2014. The total funding cost (including non-interest bearing deposits) for the first six months of 2015 was 41 basis points compared to 39 basis points for the first six months of 2014. 

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first six months of 2015 was 4.00 percent, a 1 basis point decrease from the net interest margin of 4.01 percent for the first six months of 2014.

Non-interest Income
Non-interest income of $48.5 million for the first half of 2015 increased $6.6 million, or 16 percent, over the same period last year. Service charges and other fees of $29.6 million for the first six months of 2015 increased $1.6 million, or 6 percent, from the same period last year driven by the increased number of deposit accounts and increases from recent acquisitions. The gains of $13.0 million on the sale of residential loans for the first half of 2015 increased $4.7 million, or 56 percent, from the first half of 2014 resulting from a pickup in mortgage refinancing and purchase activity. Included in other income was operating revenue of $75 thousand from OREO and gains of $665 thousand from the sales of OREO, which totaled $740 thousand for the first half of 2015 compared to $1.4 million for the same period in the prior year.

Non-interest Expense Summary
 
Six Months ended
 
$ Change
 
% Change
(Dollars in thousands)
Jun 30,
2015
 
Jun 30,
2014
 
Compensation and employee benefits
$
64,973

 
$
57,622

 
$
7,351

 
13
 %
Occupancy and equipment
15,172

 
13,346

 
1,826

 
14
 %
Advertising and promotions
4,167

 
3,725

 
442

 
12
 %
Data processing
2,842

 
3,320

 
(478
)
 
(14
)%
Other real estate owned
2,135

 
1,073

 
1,062

 
99
 %
Regulatory assessments and insurance
2,311

 
2,620

 
(309
)
 
(12
)%
Core deposit intangible amortization
1,486

 
1,403

 
83

 
6
 %
Other expenses
22,356

 
19,634

 
2,722

 
14
 %
Total non-interest expense
$
115,442

 
$
102,743

 
$
12,699

 
12
 %

Compensation and employee benefits for the first six months of 2015 increased $7.4 million, or 13 percent, from the same period last year due to the increased number of employees from the acquired banks, additional benefit costs and annual salary increases. Occupancy and equipment expense increased $1.8 million, or 14 percent, as a result of increased costs associated with the CB and FNBR acquisitions. Outsourced data processing expense decreased $478 thousand, or 14 percent, from the prior year first six months as a result of a decrease in conversion

10


related expenses. OREO expense of $2.1 million in the first six months of 2015 increased $1.1 million, or 99 percent, from the first six months of the prior year. OREO expense for the first six months of 2015 included $851 thousand of operating expenses, $1.1 million of fair value write-downs, and $214 thousand of loss from the sales of OREO. OREO expenses tend to fluctuate based on the level of activity in various quarters. Other expense of $22.4 million for the first half of 2015 increased by $2.7 million, or 14 percent, from the first half of the prior year primarily from increases in conversion related expenses.

Provision for Loan Losses
The provision for loan losses was $1.0 million for the first six months of 2015, a decrease of $314 thousand, or 23 percent, from the same period in the prior year. Net charged-off loans during the first six months of 2015 was $281 thousand, a decrease of $795 thousand from the first six months of 2014.

Efficiency Ratio
The efficiency ratio was 55.36 percent for the first six months of 2015 and 54.11 percent for the first six months of 2014. The increase in the efficiency ratio resulted from compensation expense and increased costs from acquisitions outpacing the increase in net interest income and increases in gains on sale of loans.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is a regional bank holding company providing commercial banking services in 82 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 Statements
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about management’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations in the forward-looking statements, including those set forth in this news release:
•
the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio;
•
changes in 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;

11


•
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 the 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.

12


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

(Dollars in thousands, except per share data)
June 30,
2015
 
March 31,
2015
 
December 31,
2014
 
June 30,
2014
Assets
 
 
 
 
 
 
 
Cash on hand and in banks
$
120,783

 
109,746

 
122,834

 
130,114

Federal funds sold
—

 
—

 
1,025

 
2,852

Interest bearing cash deposits
234,936

 
73,720

 
318,550

 
69,392

Cash and cash equivalents
355,719

 
183,466

 
442,409

 
202,358

Investment securities, available-for-sale
2,361,830

 
2,544,093

 
2,387,428

 
2,559,411

Investment securities, held-to-maturity
593,314

 
570,285

 
520,997

 
483,557

Total investment securities
2,955,144

 
3,114,378

 
2,908,425

 
3,042,968

Loans held for sale
53,201

 
54,132

 
46,726

 
56,021

Loans receivable
4,807,431

 
4,687,669

 
4,488,095

 
4,203,279

Allowance for loan and lease losses
(130,519
)
 
(129,856
)
 
(129,753
)
 
(130,636
)
Loans receivable, net
4,676,912

 
4,557,813

 
4,358,342

 
4,072,643

Premises and equipment, net
186,858

 
187,067

 
179,175

 
167,741

Other real estate owned
26,686

 
28,124

 
27,804

 
26,338

Accrued interest receivable
44,563

 
43,260

 
40,587

 
41,765

Deferred tax asset
56,571

 
41,220

 
41,737

 
34,505

Core deposit intangible, net
11,501

 
12,256

 
10,900

 
8,109

Goodwill
130,843

 
130,843

 
129,706

 
129,706

Non-marketable equity securities
24,914

 
54,277

 
52,868

 
52,715

Other assets
66,898

 
68,260

 
67,828

 
55,225

Total assets
$
8,589,810

 
8,475,096

 
8,306,507

 
7,890,094

Liabilities
 
 
 
 
 
 
 
Non-interest bearing deposits
$
1,731,015

 
1,675,451

 
1,632,403

 
1,464,938

Interest bearing deposits
4,827,642

 
4,783,341

 
4,712,809

 
4,280,898

Securities sold under agreements to repurchase
408,935

 
425,652

 
397,107

 
315,240

FHLB advances
329,470

 
298,148

 
296,944

 
607,305

Other borrowed funds
6,665

 
6,703

 
7,311

 
7,367

Subordinated debentures
125,776

 
125,741

 
125,705

 
125,633

Accrued interest payable
3,790

 
3,893

 
4,155

 
3,163

Other liabilities
100,066

 
102,643

 
102,026

 
75,535

Total liabilities
7,533,359

 
7,421,572

 
7,278,460

 
6,880,079

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
755

 
755

 
750

 
745

Paid-in capital
720,073

 
719,506

 
708,356

 
692,343

Retained earnings - substantially restricted
330,183

 
315,236

 
301,197

 
292,721

Accumulated other comprehensive income
5,440

 
18,027

 
17,744

 
24,206

Total stockholders’ equity
1,056,451

 
1,053,524

 
1,028,047

 
1,010,015

Total liabilities and stockholders’ equity
$
8,589,810

 
8,475,096

 
8,306,507

 
7,890,094

Number of common stock shares issued and outstanding
75,531,258

 
75,530,030

 
75,026,092

 
74,467,908



13


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

 
Three Months ended
 
Six Months ended
(Dollars in thousands, except per share data)
June 30,
2015
 
March 31,
2015
 
June 30,
2014
 
June 30,
2015
 
June 30,
2014
Interest Income
 
 
 
 
 
 
 
 
 
Residential real estate loans
$
7,942

 
7,761

 
7,220

 
15,703

 
14,307

Commercial loans
40,698

 
39,022

 
35,267

 
79,720

 
70,309

Consumer and other loans
8,018

 
7,744

 
7,583

 
15,762

 
15,226

Investment securities
21,959

 
22,959

 
23,893

 
44,918

 
48,208

Total interest income
78,617

 
77,486

 
73,963

 
156,103

 
148,050

Interest Expense
 
 
 
 
 
 
 
 
 
Deposits
4,112

 
4,147

 
3,061

 
8,259

 
6,150

Securities sold under agreements to repurchase
232

 
241

 
192

 
473

 
402

Federal Home Loan Bank advances
2,217

 
2,195

 
2,447

 
4,412

 
4,961

Federal funds purchased and other borrowed funds
15

 
27

 
48

 
42

 
101

Subordinated debentures
793

 
772

 
780

 
1,565

 
1,554

Total interest expense
7,369

 
7,382

 
6,528

 
14,751

 
13,168

Net Interest Income
71,248

 
70,104

 
67,435

 
141,352

 
134,882

Provision for loan losses
282

 
765

 
239

 
1,047

 
1,361

Net interest income after provision for loan losses
70,966

 
69,339

 
67,196

 
140,305

 
133,521

Non-Interest Income
 
 
 
 
 
 
 
 
 
Service charges and other fees
14,303

 
12,999

 
13,547

 
27,302

 
25,766

Miscellaneous loan fees and charges
1,142

 
1,157

 
1,200

 
2,299

 
2,229

Gain on sale of loans
7,600

 
5,430

 
4,778

 
13,030

 
8,373

(Loss) gain on sale of investments
(98
)
 
5

 
(48
)
 
(93
)
 
(99
)
Other income
2,855

 
3,102

 
3,027

 
5,957

 
5,623

Total non-interest income
25,802

 
22,693

 
22,504

 
48,495

 
41,892

Non-Interest Expense
 
 
 
 
 
 
 
 
 
Compensation and employee benefits
32,729

 
32,244

 
28,988

 
64,973

 
57,622

Occupancy and equipment
7,810

 
7,362

 
6,733

 
15,172

 
13,346

Advertising and promotions
2,240

 
1,927

 
1,948

 
4,167

 
3,725

Data processing
1,593

 
1,249

 
2,032

 
2,842

 
3,320

Other real estate owned
1,377

 
758

 
566

 
2,135

 
1,073

Regulatory assessments and insurance
1,006

 
1,305

 
1,028

 
2,311

 
2,620

Core deposit intangibles amortization
755

 
731

 
693

 
1,486

 
1,403

Other expenses
12,435

 
9,921

 
10,685

 
22,356

 
19,634

Total non-interest expense
59,945

 
55,497

 
52,673

 
115,442

 
102,743

Income Before Income Taxes
36,823

 
36,535

 
37,027

 
73,358

 
72,670

Federal and state income tax expense
7,488

 
8,865

 
8,350

 
16,353

 
17,263

Net Income
$
29,335

 
27,670

 
28,677

 
57,005

 
55,407

Basic earnings per share
$
0.39

 
0.37

 
0.38

 
0.76

 
0.74

Diluted earnings per share
$
0.39

 
0.37

 
0.38

 
0.76

 
0.74

Dividends declared per share
$
0.19

 
0.18

 
0.17

 
0.37

 
0.33

Average outstanding shares - basic
75,530,591

 
75,206,348

 
74,467,576

 
75,369,366

 
74,452,568

Average outstanding shares - diluted
75,565,655

 
75,244,959

 
74,499,660

 
75,407,621

 
74,491,459


14


Glacier Bancorp, Inc.
Average Balance Sheet

 
Three Months ended
 
Six Months ended
 
June 30, 2015
 
June 30, 2015
(Dollars in thousands)
Average
Balance
 
Interest &
Dividends
 
Average
Yield/
Rate
 
Average
Balance
 
Interest &
Dividends
 
Average
Yield/
Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
Residential real estate loans
$
688,214

 
$
7,942

 
4.62
%
 
$
670,058

 
$
15,703

 
4.69
%
Commercial loans 1
3,439,432

 
41,343

 
4.82
%
 
3,361,582

 
80,948

 
4.86
%
Consumer and other loans
627,847

 
8,018

 
5.12
%
 
618,900

 
15,762

 
5.14
%
Total loans 2
4,755,493

 
57,303

 
4.83
%
 
4,650,540

 
112,413

 
4.87
%
Tax-exempt investment securities 3
1,315,849

 
19,022

 
5.78
%
 
1,309,049

 
37,515

 
5.73
%
Taxable investment securities 4
1,848,222

 
9,655

 
2.09
%
 
1,876,372

 
20,409

 
2.18
%
Total earning assets
7,919,564

 
85,980

 
4.35
%
 
7,835,961

 
170,337

 
4.38
%
Goodwill and intangibles
142,781

 
 
 
 
 
141,759

 
 
 
 
Non-earning assets
391,562

 
 
 
 
 
385,605

 
 
 
 
Total assets
$
8,453,907

 
 
 
 
 
$
8,363,325

 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
$
1,693,414

 
$
—

 
—
%
 
$
1,655,981

 
$
—

 
—
%
NOW accounts
1,343,474

 
258

 
0.08
%
 
1,327,491

 
526

 
0.08
%
Savings accounts
744,845

 
84

 
0.05
%
 
729,456

 
173

 
0.05
%
Money market deposit accounts
1,336,889

 
513

 
0.15
%
 
1,320,538

 
1,030

 
0.16
%
Certificate accounts
1,153,143

 
1,784

 
0.62
%
 
1,159,279

 
3,627

 
0.63
%
Wholesale deposits 5
215,138

 
1,473

 
2.75
%
 
217,746

 
2,903

 
2.69
%
FHLB advances
315,104

 
2,217

 
2.78
%
 
307,581

 
4,412

 
2.85
%
Repurchase agreements and other borrowed funds
497,638

 
1,040

 
0.84
%
 
500,710

 
2,080

 
0.84
%
Total funding liabilities
7,299,645

 
7,369

 
0.40
%
 
7,218,782

 
14,751

 
0.41
%
Other liabilities
89,751

 
 
 
 
 
88,952

 
 
 
 
Total liabilities
7,389,396

 
 
 
 
 
7,307,734

 
 
 
 
Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
Common stock
755

 
 
 
 
 
754

 
 
 
 
Paid-in capital
719,730

 
 
 
 
 
715,949

 
 
 
 
Retained earnings
329,781

 
 
 
 
 
321,936

 
 
 
 
Accumulated other comprehensive income
14,245

 
 
 
 
 
16,952

 
 
 
 
Total stockholders’ equity
1,064,511

 
 
 
 
 
1,055,591

 
 
 
 
Total liabilities and stockholders’ equity
$
8,453,907

 
 
 
 
 
$
8,363,325

 
 
 
 
Net interest income (tax-equivalent)
 
 
$
78,611

 
 
 
 
 
$
155,586

 
 
Net interest spread (tax-equivalent)
 
 
 
 
3.95
%
 
 
 
 
 
3.97
%
Net interest margin (tax-equivalent)
 
 
 
 
3.98
%
 
 
 
 
 
4.00
%
__________ 
1 
Includes tax effect of $645 thousand and $1.2 million on tax-exempt municipal loan and lease income for the three and six months ended June 30, 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 $6.4 million and $12.3 million on tax-exempt investment security income for the three and six months ended June 30, 2015.
4 
Includes tax effect of $362 thousand and $724 thousand on federal income tax credits for the three and six months ended June 30, 2015.
5 
Wholesale deposits include brokered deposits classified as NOW, money market deposit and certificate accounts.

15


Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification

 
Loans Receivable, by Loan Type
 
% Change from
(Dollars in thousands)
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
Custom and owner occupied construction
$
56,460

 
$
51,693

 
$
56,689

 
$
51,497

 
9
 %
 
—
 %
 
10
 %
Pre-sold and spec construction
45,063

 
44,865

 
47,406

 
34,114

 
—
 %
 
(5
)%
 
32
 %
Total residential construction
101,523

 
96,558

 
104,095

 
85,611

 
5
 %
 
(2
)%
 
19
 %
Land development
78,059

 
81,488

 
82,829

 
81,589

 
(4
)%
 
(6
)%
 
(4
)%
Consumer land or lots
98,365

 
97,519

 
101,818

 
101,042

 
1
 %
 
(3
)%
 
(3
)%
Unimproved land
76,726

 
80,206

 
86,116

 
51,457

 
(4
)%
 
(11
)%
 
49
 %
Developed lots for operative builders
13,673

 
14,210

 
14,126

 
15,123

 
(4
)%
 
(3
)%
 
(10
)%
Commercial lots
20,047

 
21,059

 
16,205

 
17,238

 
(5
)%
 
24
 %
 
16
 %
Other construction
126,966

 
148,535

 
150,075

 
112,081

 
(15
)%
 
(15
)%
 
13
 %
Total land, lot, and other construction
413,836

 
443,017

 
451,169

 
378,530

 
(7
)%
 
(8
)%
 
9
 %
Owner occupied
874,651

 
877,293

 
849,148

 
816,859

 
—
 %
 
3
 %
 
7
 %
Non-owner occupied
718,024

 
704,990

 
674,381

 
617,693

 
2
 %
 
6
 %
 
16
 %
Total commercial real estate
1,592,675

 
1,582,283

 
1,523,529

 
1,434,552

 
1
 %
 
5
 %
 
11
 %
Commercial and industrial
635,259

 
585,501

 
547,910

 
549,143

 
8
 %
 
16
 %
 
16
 %
Agriculture
374,258

 
340,364

 
310,785

 
288,555

 
10
 %
 
20
 %
 
30
 %
1st lien
802,152

 
796,947

 
775,785

 
757,954

 
1
 %
 
3
 %
 
6
 %
Junior lien
67,019

 
67,217

 
68,358

 
73,130

 
—
 %
 
(2
)%
 
(8
)%
Total 1-4 family
869,171

 
864,164

 
844,143

 
831,084

 
1
 %
 
3
 %
 
5
 %
Multifamily residential
195,674

 
177,187

 
160,426

 
152,169

 
10
 %
 
22
 %
 
29
 %
Home equity lines of credit
356,077

 
347,693

 
334,788

 
309,282

 
2
 %
 
6
 %
 
15
 %
Other consumer
147,427

 
141,347

 
133,773

 
134,414

 
4
 %
 
10
 %
 
10
 %
Total consumer
503,504

 
489,040

 
468,561

 
443,696

 
3
 %
 
7
 %
 
13
 %
Other
174,732

 
163,687

 
124,203

 
95,960

 
7
 %
 
41
 %
 
82
 %
Total loans receivable, including loans held for sale
4,860,632

 
4,741,801

 
4,534,821

 
4,259,300

 
3
 %
 
7
 %
 
14
 %
Less loans held for sale 1
(53,201
)
 
(54,132
)
 
(46,726
)
 
(56,021
)
 
(2
)%
 
14
 %
 
(5
)%
Total loans receivable
$
4,807,431

 
$
4,687,669

 
$
4,488,095

 
$
4,203,279

 
3
 %
 
7
 %
 
14
 %
_______
1 Loans held for sale are primarily 1st lien 1-4 family loans.


16


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification

 
 
Non-performing Assets, by Loan Type
 
Non-
Accrual
Loans
 
Accruing
Loans 90  Days or  More Past  Due
 
Other
Real Estate
Owned
(Dollars in thousands)
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
 
Jun 30,
2015
Jun 30,
2015
Jun 30,
2015
Custom and owner occupied construction
$
1,079

 
1,101

 
1,132

 
1,196

 
1,079

 
—

 
—

Pre-sold and spec construction
18

 
218

 
218

 
609

 
18

 
—

 
—

Total residential construction
1,097

 
1,319

 
1,350

 
1,805

 
1,097

 
—

 
—

Land development
20,405

 
21,220

 
20,842

 
23,718

 
10,301

 
—

 
10,104

Consumer land or lots
2,647

 
2,531

 
3,581

 
2,804

 
1,062

 
177

 
1,408

Unimproved land
12,580

 
13,448

 
14,170

 
12,421

 
10,579

 
—

 
2,001

Developed lots for operative builders
848

 
929

 
1,318

 
2,186

 
436

 
201

 
211

Commercial lots
2,050

 
2,496

 
2,660

 
2,787

 
241

 
—

 
1,809

Other construction
4,244

 
4,989

 
5,151

 
5,156

 
—

 
—

 
4,244

Total land, lot and other construction
42,774

 
45,613

 
47,722

 
49,072

 
22,619

 
378

 
19,777

Owner occupied
13,057

 
13,121

 
13,574

 
14,595

 
9,781

 
11

 
3,265

Non-owner occupied
3,179

 
3,771

 
3,013

 
3,956

 
1,577

 
164

 
1,438

Total commercial real estate
16,236

 
16,892

 
16,587

 
18,551

 
11,358

 
175

 
4,703

Commercial and industrial
5,805

 
6,367

 
4,375

 
5,850

 
5,698

 
22

 
85

Agriculture
2,769

 
2,845

 
3,074

 
3,506

 
2,321

 
—

 
448

1st lien
9,867

 
9,502

 
9,580

 
17,240

 
8,210

 
31

 
1,626

Junior lien
739

 
680

 
442

 
1,146

 
739

 
—

 
—

Total 1-4 family
10,606

 
10,182

 
10,022

 
18,386

 
8,949

 
31

 
1,626

Multifamily residential
—

 
—

 
440

 
729

 
—

 
—

 
—

Home equity lines of credit
4,742

 
5,507

 
6,099

 
4,289

 
4,742

 
—

 
—

Other consumer
164

 
243

 
231

 
277

 
105

 
12

 
47

Total consumer
4,906

 
5,750

 
6,330

 
4,566

 
4,847

 
12

 
47

Other
29

 
1,800

 
—

 
—

 
29

 
—

 
—

Total
$
84,222

 
90,768

 
89,900

 
102,465

 
56,918

 
618

 
26,686



17


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)

 
Accruing 30-89 Days Delinquent Loans,  by Loan Type
 
% Change from
(Dollars in thousands)
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
Pre-sold and spec construction
$
—

 
$
—

 
$
869

 
$
144

 
n/m

 
(100
)%
 
(100
)%
Consumer land or lots
158

 
365

 
391

 
267

 
(57
)%
 
(60
)%
 
(41
)%
Unimproved land
755

 
278

 
267

 
899

 
172
 %
 
183
 %
 
(16
)%
Developed lots for operative builders
—

 
19

 
—

 
—

 
(100
)%
 
n/m

 
n/m

Commercial lots
66

 
585

 
21

 
—

 
(89
)%
 
214
 %
 
n/m

Total land, lot and other construction
979

 
1,247

 
679

 
1,166

 
(21
)%
 
44
 %
 
(16
)%
Owner occupied
4,727

 
4,841

 
5,971

 
6,125

 
(2
)%
 
(21
)%
 
(23
)%
Non-owner occupied
8,257

 
4,327

 
3,131

 
1,665

 
91
 %
 
164
 %
 
396
 %
Total commercial real estate
12,984

 
9,168

 
9,102

 
7,790

 
42
 %
 
43
 %
 
67
 %
Commercial and industrial
6,760

 
6,600

 
2,915

 
2,528

 
2
 %
 
132
 %
 
167
 %
Agriculture
353

 
3,715

 
994

 
497

 
(90
)%
 
(64
)%
 
(29
)%
1st lien
2,891

 
7,307

 
6,804

 
2,408

 
(60
)%
 
(58
)%
 
20
 %
Junior lien
335

 
384

 
491

 
536

 
(13
)%
 
(32
)%
 
(38
)%
Total 1-4 family
3,226

 
7,691

 
7,295

 
2,944

 
(58
)%
 
(56
)%
 
10
 %
Multifamily Residential
671

 
676

 
—

 
689

 
(1
)%
 
n/m

 
(3
)%
Home equity lines of credit
2,464

 
3,350

 
1,288

 
1,839

 
(26
)%
 
91
 %
 
34
 %
Other consumer
996

 
1,003

 
928

 
938

 
(1
)%
 
7
 %
 
6
 %
Total consumer
3,460

 
4,353

 
2,216

 
2,777

 
(21
)%
 
56
 %
 
25
 %
Other
41

 
—

 
1,834

 
57

 
n/m

 
(98
)%
 
(28
)%
Total
$
28,474

 
$
33,450

 
$
25,904

 
$
18,592

 
(15
)%
 
10
 %
 
53
 %
_______
n/m - not measurable


18


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)

 
Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan Type
 
Charge-Offs
 
Recoveries
(Dollars in thousands)
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
Jun 30,
2014
 
Jun 30,
2015
Jun 30,
2015
Pre-sold and spec construction
$
(23
)
 
(9
)
 
(94
)
 
(39
)
 
—

 
23

Land development
(807
)
 
(23
)
 
(390
)
 
(333
)
 
256

 
1,063

Consumer land or lots
(77
)
 
(15
)
 
375

 
97

 
71

 
148

Unimproved land
(86
)
 
(50
)
 
52

 
(126
)
 
—

 
86

Developed lots for operative builders
(98
)
 
(96
)
 
(140
)
 
(117
)
 
13

 
111

Commercial lots
(3
)
 
(1
)
 
(6
)
 
(3
)
 
—

 
3

Other construction
(1
)
 
(1
)
 
—

 
—

 
—

 
1

Total land, lot and other construction
(1,072
)
 
(186
)
 
(109
)
 
(482
)
 
340

 
1,412

Owner occupied
271

 
316

 
669

 
(7
)
 
349

 
78

Non-owner occupied
109

 
82

 
(162
)
 
(184
)
 
116

 
7

Total commercial real estate
380

 
398

 
507

 
(191
)
 
465

 
85

Commercial and industrial
1,007

 
426

 
1,069

 
1,343

 
1,272

 
265

Agriculture
(7
)
 
(4
)
 
28

 
—

 
—

 
7

1st lien
(49
)
 
(30
)
 
372

 
298

 
19

 
68

Junior lien
(129
)
 
(54
)
 
183

 
91

 
29

 
158

Total 1-4 family
(178
)
 
(84
)
 
555

 
389

 
48

 
226

Multifamily residential
(29
)
 
(20
)
 
138

 
1

 
—

 
29

Home equity lines of credit
206

 
121

 
190

 
(120
)
 
227

 
21

Other consumer
(3
)
 
20

 
226

 
175

 
246

 
249

Total consumer
203

 
141

 
416

 
55

 
473

 
270

Total
$
281

 
662

 
2,510

 
1,076

 
2,598

 
2,317

















Visit our website at www.glacierbancorp.com

19

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