Glacier Bancorp, Inc. Announces Results for the Quarter Ended June 30, 2018

2nd Quarter 2018 Highlights:

• Net income of $44.4 million for the current quarter, an increase of $10.7 million, or 32 percent, over the prior year second quarter net income of $33.7 million.  Pre-tax income of $53.9 million for the current quarter, an increase of $8.3 million, or 18 percent, over the prior year second quarter pre-tax income of $45.6 million.
• Current quarter diluted earnings per share of $0.52, an increase of 8 percent from the prior quarter, and an increase of 21 percent from the prior year second quarter diluted earnings per share of $0.43.
• Current quarter loan growth of $279 million, or 15 percent annualized.
• Current quarter non-interest bearing deposits increased $103 million, or 15 percent annualized.
• Net interest margin of 4.17 percent as a percentage of earning assets, on a tax equivalent basis, a 5 basis points increase over the 4.12 percent net interest margin in the prior year second quarter.
• Dividend declared of $0.26 per share, an increase of $0.03 per share, or 13 percent, over the prior quarter.  The dividend was the 133rd consecutive quarterly dividend.
• The Company successfully completed the conversion of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank.
• The Company announced appointment of David C. Boyles as a Director of the Company.  Mr Boyles is a banker with over 45 years of banking experience in Colorado and has served as Chairman of the Board of Columbine Corp. and President of Guarantee Bank and Trust.

First Half of 2018 Highlights:

• Net income of $82.9 million for the first half of 2018, an increase of $18.0 million, or  28 percent, over the first half of 2017 net income of $64.9 million.  Pre-tax income of $100.8 million for the first half of 2018, an increase of $14.2 million, or 16 percent, over the first half of 2017 pre-tax income of $86.6 million.
• Diluted earnings per share of $1.00, an increase of 19 percent from the prior year first six months diluted earnings per share of $0.84.
• Organic loan growth of $389 million, or 12 percent annualized, for the first six months of the current year.
• Net interest margin of 4.14 percent as a percentage of earning assets, on a tax equivalent basis, a 6 basis points increase over the 4.08 percent net interest margin in the first six months of the prior year.
• Dividend declared of $0.49 per share, an increase of $0.07 per share, or 17 percent, over the prior year first six months.
• The Company completed the acquisition of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado, with total assets of $551 million.
• The Company completed the acquisition of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank in Bozeman, Montana, with total assets of $1.110 billion.

Financial Highlights

	At or for the Three Months ended							At or for the Six Months Ended
(Dollars in thousands, except per share and market data)	Jun 30,  2018			Mar 31,  2018		Jun 30,  2017		Jun 30,  2018		Jun 30,  2017
Operating results
Net income	$	44,384		38,559		33,687		82,943		64,942
Basic earnings per share	$	0.53		0.48		0.43		1.00		0.84
Diluted earnings per share	$	0.52		0.48		0.43		1.00		0.84
Dividends declared per share	$	0.26		0.23		0.21		0.49		0.42
Market value per share
Closing	$	38.68		38.38		36.61		38.68		36.61
High	$	41.47		41.24		37.41		41.47		38.17
Low	$	35.77		36.72		31.56		35.77		31.56
Selected ratios and other data
Number of common stock shares outstanding	84,516,650			84,511,472		78,001,890		84,516,650		78,001,890
Average outstanding shares - basic	84,514,257			80,808,904		77,546,236		82,671,816		77,061,867
Average outstanding shares - diluted	84,559,268			80,887,135		77,592,325		82,734,407		77,125,677
Return on average assets (annualized)	1.53%			1.50%		1.39%		1.52%		1.37%
Return on average equity (annualized)	12.07%			11.90%		11.37%		11.99%		11.28%
Efficiency ratio	55.44%			57.80%		52.89%		56.54%		54.17%
Dividend payout ratio	49.06%			47.92%		48.84%		49.00%		50.00%
Loan to deposit ratio	84.92%			81.83%		81.86%		84.92%		81.86%
Number of full time equivalent employees	2,605			2,545		2,265		2,605		2,265
Number of locations	167			166		145		167		145
Number of ATMs	221			223		199		221		199

KALISPELL, Mont., July 19, 2018 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ: GBCI) reported net income of $44.4 million for the current quarter, an increase of $10.7 million, or 32 percent, from the $33.7 million of net income for the prior year second quarter.  Diluted earnings per share for the current quarter was $0.52 per share, an increase of $0.09, or 21 percent, from the prior year second quarter diluted earnings per share of $0.43.  Included in the current quarter was $2.9 million of acquisition-related expenses.  “We were very pleased to see our business really pick up speed later in the current quarter.  This resulted in strong second quarter and year to date performance across the board.  The strength of our Western markets and the Glacier team once again exceeded expectations,” said Randy Chesler, President and Chief Executive Officer.

Net income for the six months ended June 30, 2018 was $82.9 million, an increase of $18.0 million, or 28 percent, from the $64.9 million of net income for the first six months of the prior year.  Diluted earnings per share for the first half of 2018 was $1.00 per share, an increase of $0.16, or 19 percent, from the diluted earnings per share of $0.84 for the same period in the prior year.

On February 28, 2018, the Company completed the acquisition of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank in Bozeman, Montana (collectively, “FSB”).  On January 31, 2018, the Company completed the acquisition of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado (collectively, “Collegiate”).  The Company’s results of operations and financial condition include the acquisitions beginning on the acquisition dates and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:

	FSB				Collegiate
(Dollars in thousands)	February 28,  2018				January 31,  2018			Total
Total assets	$	1,109,684			551,198			1,660,882
Debt securities	271,865				42,177			314,042
Loans receivable	627,767				354,252			982,019
Non-interest bearing deposits	301,468				170,022			471,490
Interest bearing deposits	576,118				267,149			843,267
Borrowings	36,880				12,509			49,389

Asset Summary

														$ Change from
(Dollars in thousands)	Jun 30,  2018				Mar 31,  2018			Dec 31,  2017			Jun 30,  2017			Mar 31,  2018			Dec 31,  2017			Jun 30,  2017
Cash and cash equivalents	$	368,132			451,048			200,004			237,590			(82,916	)		168,128			130,542
Debt securities, available-for-sale	2,177,352				2,154,845			1,778,243			2,142,472			22,507			399,109			34,880
Debt securities, held-to-maturity	620,409				634,413			648,313			659,347			(14,004	)		(27,904	)		(38,938	)
Total debt securities	2,797,761				2,789,258			2,426,556			2,801,819			8,503			371,205			(4,058	)
Loans receivable
Residential real estate	835,382				831,021			720,728			712,726			4,361			114,654			122,656
Commercial real estate	4,384,781				4,251,003			3,577,139			3,393,753			133,778			807,642			991,028
Other commercial	1,940,435				1,839,293			1,579,353			1,549,067			101,142			361,082			391,368
Home equity	511,043				489,879			457,918			445,245			21,164			53,125			65,798
Other consumer	277,031				258,834			242,686			244,971			18,197			34,345			32,060
Loans receivable	7,948,672				7,670,030			6,577,824			6,345,762			278,642			1,370,848			1,602,910
Allowance for loan and lease losses	(131,564		)		(127,608	)		(129,568	)		(129,877	)		(3,956	)		(1,996	)		(1,687	)
Loans receivable, net	7,817,108				7,542,422			6,448,256			6,215,885			274,686			1,368,852			1,601,223
Other assets	914,643				876,050			631,533			644,200			38,593			283,110			270,443
Total assets	$	11,897,644			11,658,778			9,706,349			9,899,494			238,866			2,191,295			1,998,150

Total debt securities of $2.798 billion at June 30, 2018 increased $8.5 million, or 30 basis points, during the current quarter and decreased $4.1 million, or 14 basis points, from the prior year second quarter.  Debt securities represented 24 percent of total assets at June 30, 2018 compared to 28 percent of total assets at June 30, 2017.

The Company had a successful quarter in loan growth and the loan portfolio of $7.9 billion increased $279 million, or 15 percent annualized, during the current quarter.  The loan category with the largest increase was commercial real estate loans which increased $134 million, or 3 percent.  Excluding the FSB and Collegiate acquisitions, the loan portfolio increased $621 million, or 10 percent, since June 30, 2017 and was primarily driven by growth in commercial real estate loans, which increased $373 million, or 11 percent.

Credit Quality Summary

	At or for theSix Months ended				At or for theThree Months ended			At or for theYear ended			At or for theSix Months ended
(Dollars in thousands)	Jun 30,  2018				Mar 31,  2018			Dec 31,  2017			Jun 30,  2017
Allowance for loan and lease losses
Balance at beginning of period	$	129,568			129,568			129,572			129,572
Provision for loan losses	5,513				795			10,824			4,611
Charge-offs	(7,611		)		(5,007	)		(19,331	)		(8,818	)
Recoveries	4,094				2,252			8,503			4,512
Balance at end of period	$	131,564			127,608			129,568			129,877
Other real estate owned	$	13,616			14,132			14,269			18,500
Accruing loans 90 days or more past due	12,751				5,402			6,077			3,198
Non-accrual loans	58,170				54,449			44,833			47,183
Total non-performing assets	$	84,537			73,983			65,179			68,881
Non-performing assets as a percentage of subsidiary assets	0.71		%		0.64	%		0.68	%		0.70	%
Allowance for loan and lease losses as a percentage of non-performing loans	186		%		213	%		255	%		258	%
Allowance for loan and lease losses as a percentage of total loans	1.66		%		1.66	%		1.97	%		2.05	%
Net charge-offs as a percentage of total loans	0.04		%		0.04	%		0.17	%		0.07	%
Accruing loans 30-89 days past due	$	39,650			44,963			37,687			31,124
Accruing troubled debt restructurings	$	34,991			41,649			38,491			31,742
Non-accrual troubled debt restructurings	$	18,380			13,289			23,709			25,418
U.S. government guarantees included in non-performing assets	$	7,265			4,548			2,513			1,158

Non-performing assets at June 30, 2018 were $84.5 million, an increase of $10.6 million, or 14 percent, from the prior quarter and an increase of $15.7 million, or 23 percent, from the prior year second quarter.  Non-performing assets as a percentage of subsidiary assets at June 30, 2018 was 0.71 percent, an increase of 7 basis points from the prior quarter, and an increase of 1 basis point from the prior year second quarter.  Early stage delinquencies (accruing loans 30-89 days past due) of $39.7 million at June 30, 2018 decreased $5.3 million from the prior quarter and early stage delinquencies as a percentage of loans at June 30, 2018 was 0.50 percent which was a decrease of 9 basis points from the prior quarter and a 1 basis point increase from prior year second quarter.  The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at June 30, 2018 was 1.66 percent, which was stable compared to the prior quarter and a decrease of 31 basis points from 1.97 percent at December 31, 2017.  This decrease was primarily driven by the addition of loans from new acquisitions, as they are added to the portfolio on a fair value basis and as a result do not require an allowance.

Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands)	Provisionfor LoanLosses			Net Charge-Offs			ALLLas a Percentof Loans		AccruingLoans 30-89Days Past Dueas a Percent ofLoans		Non-PerformingAssets toTotal SubsidiaryAssets
Second quarter 2018	$	4,718		$	762		1.66%		0.50%		0.71%
First quarter 2018	795			2,755			1.66%		0.59%		0.64%
Fourth quarter 2017	2,886			2,894			1.97%		0.57%		0.68%
Third quarter 2017	3,327			3,628			1.99%		0.45%		0.67%
Second quarter 2017	3,013			2,362			2.05%		0.49%		0.70%
First quarter 2017	1,598			1,944			2.20%		0.67%		0.75%
Fourth quarter 2016	1,139			4,101			2.28%		0.45%		0.76%
Third quarter 2016	626			478			2.37%		0.49%		0.84%

Net charge-offs for the current quarter were $762 thousand compared to $2.8 million for the prior quarter and $2.4 million from the same quarter last year.  Current quarter provision for loan losses was $4.7 million, compared to $795 thousand in the prior quarter and $3.0 million in 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,  2018				Mar 31,  2018			Dec 31,  2017			Jun 30,  2017			Mar 31,  2018			Dec 31,  2017			Jun 30,  2017
Deposits
Non-interest bearing deposits	$	2,914,885			2,811,469			2,311,902			2,234,058			103,416			602,983			680,827
NOW and DDA accounts	2,354,214				2,400,693			1,695,246			1,717,351			(46,479	)		658,968			636,863
Savings accounts	1,330,637				1,328,047			1,082,604			1,059,717			2,590			248,033			270,920
Money market deposit accounts	1,723,681				1,778,068			1,512,693			1,608,994			(54,387	)		210,988			114,687
Certificate accounts	927,608				955,105			817,259			886,504			(27,497	)		110,349			41,104
Core deposits, total	9,251,025				9,273,382			7,419,704			7,506,624			(22,357	)		1,831,321			1,744,401
Wholesale deposits	172,550				145,463			160,043			291,339			27,087			12,507			(118,789	)
Deposits, total	9,423,575				9,418,845			7,579,747			7,797,963			4,730			1,843,828			1,625,612
Repurchase agreements	361,515				395,794			362,573			451,050			(34,279	)		(1,058	)		(89,535	)
Federal Home Loan Bank advances	395,037				155,057			353,995			211,505			239,980			41,042			183,532
Other borrowed funds	9,917				8,204			8,224			5,817			1,713			1,693			4,100
Subordinated debentures	134,058				134,061			126,135			126,063			(3	)		7,923			7,995
Other liabilities	99,550				92,793			76,618			97,139			6,757			22,932			2,411
Total liabilities	$	10,423,652			10,204,754			8,507,292			8,689,537			218,898			1,916,360			1,734,115

Core deposits of $9.251 billion as of June 30, 2018 decreased $22.4 million, or 24 basis points, from the prior quarter.  Excluding acquisitions, core deposits increased $430 million, or 6 percent, from the prior year second quarter.  Non-interest bearing deposits as of June 30, 2018 increased $103 million, or 4 percent from the prior quarter and organically increased $209 million, or 9 percent from the prior year second quarter.

Securities sold under agreements to repurchase of $362 million at June 30, 2018 decreased $34.3 million, or 9 percent, over prior quarter and decreased $89.5 million, or 20 percent, over prior year second quarter.  Federal Home Loan Bank (“FHLB”) advances of $395 million at June 30, 2018, increased $240 million over the prior quarter to fund loan growth during the current quarter.

Stockholders’ Equity Summary

																	$ Change from
(Dollars in thousands, except per share data)	Jun 30,  2018				Mar 31,  2018				Dec 31,  2017				Jun 30,  2017				Mar 31,  2018			Dec 31,  2017			Jun 30,  2017
Common equity	$	1,494,274			1,471,047				1,201,036				1,204,258				23,227			293,238			290,016
Accumulated other comprehensive (loss) income	(20,282		)		(17,023		)		(1,979		)		5,699				(3,259	)		(18,303	)		(25,981	)
Total stockholders’ equity	1,473,992				1,454,024				1,199,057				1,209,957				19,968			274,935			264,035
Goodwill and core deposit intangible, net	(342,243		)		(343,991		)		(191,995		)		(193,249		)		1,748			(150,248	)		(148,994	)
Tangible stockholders’ equity	$	1,131,749			1,110,033				1,007,062				1,016,708				21,716			124,687			115,041
Stockholders’ equity to total assets		12.39	%		12.47		%		12.35		%		12.22		%
Tangible stockholders’ equity to total tangible assets		9.79	%		9.81		%		10.58		%		10.47		%
Book value per common share	$	17.44			$	17.21			$	15.37			$	15.51			0.23			2.07			1.93
Tangible book value per common share	$	13.39			$	13.13			$	12.91			$	13.03			0.26			0.48			0.36

Tangible stockholders’ equity of $1.132 billion at June 30, 2018 increased $22 million compared to the prior quarter which was the result of earnings retention.  Tangible stockholders’ equity increased $115 million over the prior year second quarter which was the result of earnings retention, $181 million and $69.8 million of Company stock issued for the acquisitions of FSB and Collegiate, respectively; these increases more than offset the increase in goodwill and core deposit intangibles associated with the acquisitions.  Tangible book value per common share at quarter end increased $0.26 per share from the prior quarter and increased $0.36 per share from a year ago.

Cash DividendsOn June 27, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share, an increase of $0.03 per share, or 13 percent from the prior quarter.  The dividend was payable July 19, 2018 to shareholders of record on July 10, 2018.  The dividend was the 133rd consecutive quarterly dividend.  Dividends declared for the first half of 2018 were $0.49 per share, an increase of $0.07 per share, or 17 percent, over the same period last year. 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 June 30, 2018Compared to March 31, 2018 and June 30, 2017

Income Summary

	Three Months ended										$ Change from
(Dollars in thousands)	Jun 30,  2018				Mar 31,  2018			Jun 30,  2017			Mar 31,  2018			Jun 30,  2017
Net interest income
Interest income	$	117,715			103,066			94,032			14,649			23,683
Interest expense	9,161				7,774			7,774			1,387			1,387
Total net interest income	108,554				95,292			86,258			13,262			22,296
Non-interest income
Service charges and other fees	18,804				16,871			17,495			1,933			1,309
Miscellaneous loan fees and charges	2,243				1,477			1,092			766			1,151
Gain on sale of loans	8,142				6,097			7,532			2,045			610
Loss on sale of investments	(56		)		(333	)		(522	)		277			466
Other income	2,695				1,974			2,059			721			636
Total non-interest income	31,828				26,086			27,656			5,742			4,172
Total income	$	140,382			121,378			113,914			19,004			26,468
Net interest margin (tax-equivalent)	4.17		%		4.10	%		4.12	%

Net Interest IncomeThe current quarter interest income of $118 million increased $14.6 million, or 14 percent, from the prior quarter and increased $23.7 million, or 25 percent, over the prior year second quarter with both increases primarily attributable to the increase in interest income from commercial loans.  Interest income on commercial loans increased $10.3 million, or 16 percent, from the prior quarter and increased $19.6 million, or 35 percent, from the prior year second quarter.

The current quarter interest expense of $9.2 million increased $1.4 million, or 18 percent, from the prior quarter and increased $1.4 million, or 18 percent, from the prior year second quarter.  The total cost of funding (including non-interest bearing deposits) for the current quarter was 36 basis points compared to 35 basis points for the prior quarter and 37 basis points for the prior year second quarter.  The 1 basis point increase from the prior quarter was driven by an increase in deposit rates which was partially offset by the increase in non-interest bearing deposits.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.17 percent compared to 4.10 percent in the prior quarter.  The 7 basis points increase in the net interest margin was primarily the result of increased yields on the loan portfolio and also included a 2 basis points increase in loan discount accretion from the fair value adjustments of recently acquired banks.  The current quarter net interest margin increased 5 basis points over the prior year second quarter net interest margin of 4.12 percent.  Included in the current quarter margin was a 14 basis points decrease due to the reduction in the federal corporate income tax rate in 2018 by the Tax Cut and Jobs Act (“Tax Act”).  The increase in the core margin from the prior year second quarter resulted from the remix of earning assets to higher yielding loans, increased yields on the loan portfolio, and stable funding costs.  “The Bank divisions have been excellent in pricing loans at higher yields where possible in the current quarter.  They remain focused on maintaining a quality deposit franchise.  We were especially pleased to see growth in non-interest bearing deposits,” said Ron Copher, Chief Financial Officer.

Non-interest IncomeNon-interest income for the current quarter totaled $31.8 million, an increase of $5.7 million, or 22 percent, from the prior quarter and an increase of $4.2 million, or 15 percent, over the same quarter last year.  Service charges and other fees of $18.8 million for the current quarter, increased $1.9 million, or 11 percent, from the prior quarter as a result of seasonality and the increased number of accounts, including from acquisitions.  Service charges and other fees increased $1.3 million, 7 percent, from the prior year second quarter primarily due to the increased number of accounts from organic growth and acquisitions.  Miscellaneous loan fees and charges increased $766 thousand, or 52 percent from prior quarter and increased $1.2 million, or 105 percent, from the prior year second quarter as a result of the recent acquisitions and increased loan growth.  Gain on sale of loans increased $2.0 million, or 34 percent, from the prior quarter as a result of seasonality.

Non-interest Expense Summary

	Three Months ended										$ Change from
(Dollars in thousands)	Jun 30,  2018				Mar 31,  2018			Jun 30,  2017			Mar 31,  2018			Jun 30,  2017
Compensation and employee benefits	$	49,023			45,721			39,498			3,302			9,525
Occupancy and equipment	7,662				7,274			6,560			388			1,102
Advertising and promotions	2,530				2,170			2,169			360			361
Data processing	4,241				3,967			3,409			274			832
Other real estate owned	211				72			442			139			(231	)
Regulatory assessments and insurance	1,329				1,206			1,087			123			242
Core deposit intangibles amortization	1,748				1,056			639			692			1,109
Other expenses	15,051				12,161			11,505			2,890			3,546
Total non-interest expense	$	81,795			73,627			65,309			8,168			16,486

Total non-interest expense of $81.8 million for the current quarter increased $8.2 million, or 11 percent, over the prior quarter and increased $16.5 million, or 25 percent, over the prior year second quarter.  Compensation and employee benefits increased by $3.3 million, or 7 percent, from the prior quarter due to the increased number of employees from acquisitions.  Compensation and employee benefits increased by $9.5 million, or 24 percent, from the prior year second quarter due to the increased number of employees from acquisitions and organic growth combined with annual salary increases.  Occupancy and equipment expense increased $388 thousand, or 5 percent, over the prior quarter and increased $1.1 million, or 17 percent, over the prior year second quarter and was attributable to increased costs from acquisitions.  Data processing expense increased $274 thousand, or 7 percent, from the prior quarter and increased $832 thousand, or 24 percent, from the prior year second quarter due to increased expenses from the acquisitions.  Other expenses increased $2.9 million, or 24 percent, from the prior quarter and increased $3.5 million, or 31 percent, from the prior year second quarter primarily from an increase in acquisition-related expenses.  Acquisition-related expenses were $2.9 million during the current quarter compared to $1.8 million in the prior quarter and $867 thousand in the prior year second quarter.

Federal and State Income Tax ExpenseTax expense during the second quarter of 2018 was $9.5 million, which is a decrease of $2.4 million, or 20 percent, from the prior year second quarter and was attributable to the decrease in the federal income tax rate driven by the Tax Act.  The effective tax rate in the second quarter of 2018 was 18 percent compared to 26 percent in the prior year second quarter.

Efficiency RatioThe current quarter efficiency ratio was 55.44 percent, a 236 basis points improvement from the prior quarter efficiency ratio of 57.80 percent.  The decrease was the result of an increase in interest income and seasonal increases in gain on sale of loans and deposit service charges combined with the Company controlling operating costs.

Operating Results for Six Months Ended June 30, 2018Compared to June 30, 2017

Income Summary

	Six Months Ended
(Dollars in thousands)	Jun 30,  2018				Jun 30,  2017				$ Change				% Change
Net interest income
Interest income	$	220,781			$	181,660			$	39,121			22 %
Interest expense	16,935				15,140				1,795				12 %
Total net interest income	203,846				166,520				37,326				22 %
Non-interest income
Service charges and other fees	35,675				33,128				2,547				8 %
Miscellaneous loan fees and charges	3,720				2,072				1,648				80 %
Gain on sale of loans	14,239				13,890				349				3 %
Loss on sale of investments	(389		)		(622		)		233				(37)%
Other income	4,669				4,877				(208		)		(4)%
Total non-interest income	57,914				53,345				4,569				9 %
	$	261,760			$	219,865			$	41,895			19 %
Net interest margin (tax-equivalent)	4.14		%		4.08		%

Net Interest IncomeInterest income for the the first six months of 2018 increased $39.1 million, or 22 percent, from the first six months of 2017 and was primarily attributable to a $35.2 million increase in interest income from commercial loans.  Interest expense of $16.9 million for the first half of 2018 increased $1.8 million over the prior year same period.  Interest expense on deposits decreased $408 thousand, or 5 percent, from the prior year and was due to the decrease in wholesale deposits.  Interest expense on repurchase agreements, FHLB advances, and subordinated debt increased $2.2 million, or 36 percent, over the prior year and was primarily driven by the increase in interest rates.  The total funding cost (including non-interest bearing deposits) for 2018 was 36 basis points compared to 37 basis points for 2017.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first six months of 2018 was 4.14 percent, a 6 basis points increase from the net interest margin of 4.08 percent for the first half of 2017.  Included in the current year margin was a 14 basis points decrease compared to the prior year driven by the reduction in the federal corporate income tax rate.  The increase in the margin was principally due to a shift in earning assets to higher yielding loans along with an increase in yields on the loan portfolio combined with stable cost of funds.

Non-interest IncomeNon-interest income of $57.9 million for the first six months of 2018 increased $4.6 million, or 9 percent, over the same period last year.  Service charges and other fees of $35.7 million for 2018 increased $2.5 million, or 8 percent, from the prior year as a result of an increased number of deposit accounts from organic growth and acquisitions.  Miscellaneous loan fees and charges for the first half of 2018 increased $1.6 million, or 80 percent from the prior year as a result of the recent acquisitions and increased loan growth.

Non-interest Expense Summary

	Six Months Ended
(Dollars in thousands)	Jun 30,  2018				Jun 30,  2017				$ Change				% Change
Compensation and employee benefits	$	94,744			$	78,744			$	16,000			20 %
Occupancy and equipment	14,936				13,206				1,730				13 %
Advertising and promotions	4,700				4,142				558				13 %
Data processing	8,208				6,533				1,675				26 %
Other real estate owned	283				715				(432		)		(60)%
Regulatory assessments and insurance	2,535				2,148				387				18 %
Core deposit intangibles amortization	2,804				1,240				1,564				126 %
Other expenses	27,212				21,925				5,287				24 %
Total non-interest expense	$	155,422			$	128,653			$	26,769			21 %

Total non-interest expense of $155.4 million for the first half of 2018 increased $26.8 million, or 21 percent, over prior year first half. Compensation and employee benefits for first six months of 2018 increased $16.0 million, or 20 percent, from the same period last year due to the increased number of employees from acquisitions and organic growth combined with annual salary increases. Occupancy and equipment expense for the first half of 2018 increased $1.7 million, or 13 percent from the prior year as a result of increased costs from acquisitions.  Data processing expense for the current year increased $1.7 million, or 26 percent, from the prior year as a result of increased costs from the acquisitions.  Current year other expenses of $27.2 million increased $5.3 million, or 24 percent, from the prior year and was from an increase in acquisition-related expenses.  Acquisition-related expenses were $4.8 million during the first half of 2018 compared to $949 thousand in the prior year first half.

Provision for Loan LossesThe provision for loan losses was $5.5 million for the first half of 2018, an increase of $902 thousand from the same period in the prior year.  Net charge-offs during the first half of 2018 were $3.5 million compared to $4.3 million during the same period in 2017.

Federal and State Income Tax ExpenseTax expense of $17.9 million in the first half of  2018 decreased $3.8 million, or 17 percent, over the prior year same period as a result of a decrease in the federal corporate income tax rate by the Tax Act.  The effective tax rate in 2018 was 18 percent compared to 25 percent in the prior year.

Efficiency RatioThe efficiency ratio of 56.54 percent for the first six months of 2018 increased 237 basis points from the prior year first six months efficiency ratio of 54.17.  The increase included 280 basis points related to the decrease in the federal income tax rate and the increase in acquisition-related expenses.

Forward-Looking StatementsThis news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements include, but are not limited to, statements about management’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or words of similar meaning.  These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control.  In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.  The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations in the forward-looking statements, including those set forth in this news release:

• the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio;
• changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability;
• changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties;
• legislative or regulatory changes, including increased banking and consumer protection regulation that adversely affect the Company’s business, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
• ability to complete pending or prospective future acquisitions, limit certain sources of revenue, or increase cost of operations;
• costs or difficulties related to the completion and integration of acquisitions;
• the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
• reduced demand for banking products and services;
• the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain (and maintain) customers;
• competition among financial institutions in the Company's markets may increase significantly;
• the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
• the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
• consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
• dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
• material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
• natural disasters, including fires, floods, earthquakes, and other unexpected events;
• the Company’s success in managing risks involved in the foregoing; and
• the effects of any reputational damage to the Company resulting from any of the foregoing.

The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.

Conference Call InformationThe conference call will be accessible by telephone and through the internet. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 6584388. To participate on the webcast, log on to: https://edge.media-server.com/m6/p/ihbz5btx. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 6584388 by August 3, 2018.

About Glacier Bancorp, Inc.Glacier Bancorp, Inc. is the parent company for Glacier Bank, Kalispell and its bank divisions: First Security Bank of Missoula; Valley Bank of Helena; Western Security Bank, Billings; First Bank of Montana, Lewistown; and First Security Bank, Bozeman, all located in Montana; as well as Mountain West Bank, Coeur d’Alene, operating in Idaho, Utah and Washington; First Bank, Powell, operating in Wyoming and Utah; Citizens Community Bank, Pocatello, operating in Idaho; Bank of the San Juans, Durango; and Collegiate Peaks Bank, Buena Vista both operating in Colorado; First State Bank, Wheatland, operating in Wyoming; North Cascades Bank, Chelan, operating in Washington; and The Foothills Bank, Yuma, operating in Arizona.

 

Glacier Bancorp, Inc.Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)	June 30,  2018				March 31,  2018			December 31,  2017			June 30,  2017
Assets
Cash on hand and in banks	$	174,239			140,625			139,948			163,913
Federal funds sold	—				230			—			—
Interest bearing cash deposits	193,893				310,193			60,056			73,677
Cash and cash equivalents	368,132				451,048			200,004			237,590
Debt securities, available-for-sale	2,177,352				2,154,845			1,778,243			2,142,472
Debt securities, held-to-maturity	620,409				634,413			648,313			659,347
Total debt securities	2,797,761				2,789,258			2,426,556			2,801,819
Loans held for sale, at fair value	53,788				37,058			38,833			37,726
Loans receivable	7,948,672				7,670,030			6,577,824			6,345,762
Allowance for loan and lease losses	(131,564		)		(127,608	)		(129,568	)		(129,877	)
Loans receivable, net	7,817,108				7,542,422			6,448,256			6,215,885
Premises and equipment, net	240,373				238,491			177,348			179,823
Other real estate owned	13,616				14,132			14,269			18,500
Accrued interest receivable	55,973				54,376			44,462			46,921
Deferred tax asset	34,211				32,929			38,344			59,186
Core deposit intangible, net	52,708				54,456			14,184			15,438
Goodwill	289,535				289,535			177,811			177,811
Non-marketable equity securities	26,107				21,910			29,884			23,995
Bank-owned life insurance	81,379				81,787			59,351			58,612
Other assets	66,953				51,376			37,047			26,188
Total assets	$	11,897,644			11,658,778			9,706,349			9,899,494
Liabilities
Non-interest bearing deposits	$	2,914,885			2,811,469			2,311,902			2,234,058
Interest bearing deposits	6,508,690				6,607,376			5,267,845			5,563,905
Securities sold under agreements to repurchase	361,515				395,794			362,573			451,050
FHLB advances	395,037				155,057			353,995			211,505
Other borrowed funds	9,917				8,204			8,224			5,817
Subordinated debentures	134,058				134,061			126,135			126,063
Accrued interest payable	3,952				3,740			3,450			3,535
Other liabilities	95,598				89,053			73,168			93,604
Total liabilities	10,423,652				10,204,754			8,507,292			8,689,537
Stockholders’ Equity
Preferred shares, $0.01 par value per share, 1,000,000  shares authorized, none issued or outstanding	—				—			—			—
Common stock, $0.01 par value per share, 117,187,500  shares authorized	845				845			780			780
Paid-in capital	1,049,724				1,048,860			797,997			796,707
Retained earnings - substantially restricted	443,705				421,342			402,259			406,771
Accumulated other comprehensive (loss) income	(20,282		)		(17,023	)		(1,979	)		5,699
Total stockholders’ equity	1,473,992				1,454,024			1,199,057			1,209,957
Total liabilities and stockholders’ equity	$	11,897,644			11,658,778			9,706,349			9,899,494

 

Glacier Bancorp, Inc.Unaudited Condensed Consolidated Statements of Operations
	Three Months ended										Six Months Ended
(Dollars in thousands, except per share data)	June 30,  2018				March 31,  2018			June 30,  2017			June 30,  2018			June 30,  2017
Interest Income
Debt securities	$	22,370			20,142			21,379			42,512			43,318
Residential real estate loans	10,149				8,785			8,350			18,934			16,268
Commercial loans	75,824				65,515			56,182			141,339			106,152
Consumer and other loans	9,372				8,624			8,121			17,996			15,922
Total interest income	117,715				103,066			94,032			220,781			181,660
Interest Expense
Deposits	4,617				3,916			4,501			8,533			8,941
Securities sold under agreements to repurchase	486				485			443			971			825
Federal Home Loan Bank advances	2,513				2,089			1,734			4,602			3,244
Other borrowed funds	26				16			19			42			34
Subordinated debentures	1,519				1,268			1,077			2,787			2,096
Total interest expense	9,161				7,774			7,774			16,935			15,140
Net Interest Income	108,554				95,292			86,258			203,846			166,520
Provision for loan losses	4,718				795			3,013			5,513			4,611
Net interest income after provision for loan losses	103,836				94,497			83,245			198,333			161,909
Non-Interest Income
Service charges and other fees	18,804				16,871			17,495			35,675			33,128
Miscellaneous loan fees and charges	2,243				1,477			1,092			3,720			2,072
Gain on sale of loans	8,142				6,097			7,532			14,239			13,890
Loss on sale of debt securities	(56		)		(333	)		(522	)		(389	)		(622	)
Other income	2,695				1,974			2,059			4,669			4,877
Total non-interest income	31,828				26,086			27,656			57,914			53,345
Non-Interest Expense
Compensation and employee benefits	49,023				45,721			39,498			94,744			78,744
Occupancy and equipment	7,662				7,274			6,560			14,936			13,206
Advertising and promotions	2,530				2,170			2,169			4,700			4,142
Data processing	4,241				3,967			3,409			8,208			6,533
Other real estate owned	211				72			442			283			715
Regulatory assessments and insurance	1,329				1,206			1,087			2,535			2,148
Core deposit intangibles amortization	1,748				1,056			639			2,804			1,240
Other expenses	15,051				12,161			11,505			27,212			21,925
Total non-interest expense	81,795				73,627			65,309			155,422			128,653
Income Before Income Taxes	53,869				46,956			45,592			100,825			86,601
Federal and state income tax expense	9,485				8,397			11,905			17,882			21,659
Net Income	$	44,384			38,559			33,687			82,943			64,942

 

Glacier Bancorp, Inc.Average Balance Sheets
	Three Months ended
	June 30, 2018											June 30, 2017
(Dollars in thousands)	AverageBalance				Interest &Dividends				AverageYield/Rate			AverageBalance				Interest &Dividends				AverageYield/Rate
Assets
Residential real estate loans	$	874,839			$	10,149			4.64	%		$	738,309			$	8,350			4.52	%
Commercial loans 1	6,158,095				76,834				5.00	%		4,729,848				57,709				4.89	%
Consumer and other loans	761,751				9,372				4.93	%		680,158				8,121				4.79	%
Total loans 2	7,794,685				96,355				4.96	%		6,148,315				74,180				4.84	%
Tax-exempt debt securities 3	1,085,520				12,634				4.66	%		1,201,746				17,154				5.71	%
Taxable debt securities 4	1,931,846				12,630				2.62	%		1,795,189				10,416				2.32	%
Total earning assets	10,812,051				121,619				4.51	%		9,145,250				101,750				4.46	%
Goodwill and intangibles	343,201											174,857
Non-earning assets	473,750											393,574
Total assets	$	11,629,002										$	9,713,681
Liabilities
Non-interest bearing deposits	$	2,800,719			$	—			—	%		$	2,118,776			$	—			—	%
NOW and DDA accounts	2,316,927				1,009				0.17	%		1,624,246				282				0.07	%
Savings accounts	1,319,966				231				0.07	%		1,047,790				154				0.06	%
Money market deposit accounts	1,746,960				856				0.20	%		1,551,009				608				0.16	%
Certificate accounts	941,099				1,592				0.68	%		906,416				1,303				0.58	%
Total core deposits	9,125,671				3,688				0.16	%		7,248,237				2,347				0.13	%
Wholesale deposits 5	153,127				929				2.43	%		313,511				2,154				2.76	%
FHLB advances	290,391				2,513				3.42	%		340,259				1,734				2.02	%
Repurchase agreements and  other borrowed funds	510,636				2,031				1.60	%		552,036				1,539				1.12	%
Total funding liabilities	10,079,825				9,161				0.36	%		8,454,043				7,774				0.37	%
Other liabilities	74,600											71,119
Total liabilities	10,154,425											8,525,162
Stockholders’ Equity
Common stock	845											775
Paid-in capital	1,049,270											780,891
Retained earnings	443,607											405,772
Accumulated other comprehensive (loss) income	(19,145		)									1,081
Total stockholders’ equity	1,474,577											1,188,519
Total liabilities and stockholders’ equity	$	11,629,002										$	9,713,681
Net interest income (tax-equivalent)					$	112,458										$	93,976
Net interest spread (tax-equivalent)									4.15	%										4.09	%
Net interest margin (tax-equivalent)									4.17	%										4.12	%

______________________________
1		Includes tax effect of $1.0 million and $1.5 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2018 and 2017, respectively.
2		Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale.  Non-accrual loans were included in the average volume for the entire period.
3		Includes tax effect of $2.6 million and $5.9 million on tax-exempt debt securities income for the three months ended June 30, 2018 and 2017, respectively.
4		Includes tax effect of $305 thousand and $339 thousand on federal income tax credits for the three months ended June 30, 2018 and 2017, respectively.
5		Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

 

Glacier Bancorp, Inc.Average Balance Sheets (continued)
	Six Months Ended
	June 30, 2018											June 30, 2017
(Dollars in thousands)	Average Balance				Interest & Dividends				Average Yield/ Rate			Average Balance				Interest & Dividends				Average Yield/ Rate
Assets
Residential real estate loans	$	829,579			$	18,934			4.56	%		$	723,950			$	16,268			4.49	%
Commercial loans 1	5,856,533				143,308				4.93	%		4,552,062				109,044				4.83	%
Consumer and other loans	740,569				17,996				4.90	%		676,340				15,922				4.75	%
Total loans 2	7,426,681				180,238				4.89	%		5,952,352				141,234				4.78	%
Tax-exempt debt securities 3	1,089,605				25,429				4.67	%		1,223,431				34,915				5.71	%
Taxable debt securities 4	1,793,849				22,902				2.55	%		1,826,090				20,991				2.30	%
Total earning assets	10,310,135				228,569				4.47	%		9,001,873				197,140				4.42	%
Goodwill and intangibles	281,673											167,017
Non-earning assets	432,533											381,492
Total assets	$	11,024,341										$	9,550,382
Liabilities
Non-interest bearing deposits	$	2,637,342			$	—			—	%		$	2,045,124			$	—			—	%
NOW and DDA accounts	2,165,039				1,827				0.17	%		1,600,221				529				0.07	%
Savings accounts	1,252,760				423				0.07	%		1,031,540				300				0.06	%
Money market deposit accounts	1,689,730				1,576				0.19	%		1,520,771				1,173				0.16	%
Certificate accounts	908,940				2,911				0.65	%		929,841				2,636				0.57	%
Total core deposits	8,653,811				6,737				0.16	%		7,127,497				4,638				0.13	%
Wholesale deposits 5	151,362				1,796				2.39	%		322,831				4,303				2.69	%
FHLB advances	257,800				4,602				3.55	%		305,933				3,244				2.11	%
Repurchase agreements and  other borrowed funds	516,108				3,800				1.48	%		557,303				2,955				1.07	%
Total funding liabilities	9,579,081				16,935				0.36	%		8,313,564				15,140				0.37	%
Other liabilities	50,421											76,241
Total liabilities	9,629,502											8,389,805
Stockholders’ Equity
Common stock	827											771
Paid-in capital	978,046											764,959
Retained earnings	432,143											397,829
Accumulated other comprehensive loss	(16,177		)									(2,982		)
Total stockholders’ equity	1,394,839											1,160,577
Total liabilities and stockholders’ equity	$	11,024,341										$	9,550,382
Net interest income (tax-equivalent)					$	211,634										$	182,000
Net interest spread (tax-equivalent)									4.11	%										4.05	%
Net interest margin (tax-equivalent)									4.14	%										4.08	%

______________________________
1		Includes tax effect of $2.0 million and $2.9 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2018 and 2017, respectively.
2		Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale.  Non-accrual loans were included in the average volume for the entire period.
3		Includes tax effect of $5.2 million and $11.9 million on tax-exempt investment securities income for the six months ended June 30, 2018 and 2017, respectively.
4		Includes tax effect of $609 thousand and $677 thousand on federal income tax credits for the six months ended June 30, 2018 and 2017, respectively.
5		Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

 

Glacier Bancorp, Inc.Loan Portfolio by Regulatory Classification
	Loans Receivable, by Loan Type																% Change from
(Dollars in thousands)	Jun 30,  2018				Mar 31,  2018				Dec 31,  2017				Jun 30,  2017				Mar 31,  2018		Dec 31,  2017		Jun 30,  2017
Custom and owner occupied construction	$	138,171			$	140,440			$	109,555			$	103,816			(2)%		26 %		33%
Pre-sold and spec construction	96,008				100,376				72,160				76,553				(4)%		33 %		25%
Total residential construction	234,179				240,816				181,715				180,369				(3)%		29 %		30%
Land development	108,641				76,528				82,398				80,044				42 %		32 %		36%
Consumer land or lots	110,846				119,469				102,289				107,124				(7)%		8 %		3%
Unimproved land	72,150				68,862				65,753				67,935				5 %		10 %		6%
Developed lots for operative builders	12,708				13,093				14,592				12,337				(3)%		(13)%		3%
Commercial lots	27,661				43,232				23,770				25,675				(36)%		16 %		8%
Other construction	478,037				420,632				391,835				307,547				14 %		22 %		55%
Total land, lot, and other construction	810,043				741,816				680,637				600,662				9 %		19 %		35%
Owner occupied	1,302,737				1,292,206				1,132,833				1,091,119				1 %		15 %		19%
Non-owner occupied	1,495,532				1,449,166				1,186,066				1,148,831				3 %		26 %		30%
Total commercial real estate	2,798,269				2,741,372				2,318,899				2,239,950				2 %		21 %		25%
Commercial and industrial	909,688				865,574				751,221				769,105				5 %		21 %		18%
Agriculture	661,218				620,342				450,616				457,286				7 %		47 %		45%
1st lien	1,072,917				1,014,361				877,335				849,601				6 %		22 %		26%
Junior lien	64,821				66,288				51,155				53,316				(2)%		27 %		22%
Total 1-4 family	1,137,738				1,080,649				928,490				902,917				5 %		23 %		26%
Multifamily residential	218,061				219,310				189,342				172,523				(1)%		15 %		26%
Home equity lines of credit	500,036				481,204				440,105				419,940				4 %		14 %		19%
Other consumer	164,288				162,171				148,247				155,098				1 %		11 %		6%
Total consumer	664,324				643,375				588,352				575,038				3 %		13 %		16%
States and political subdivisions	419,025				421,252				383,252				341,159				(1)%		9 %		23%
Other	149,915				132,582				144,133				144,479				13 %		4 %		4%
Total loans receivable, including  loans held for sale	8,002,460				7,707,088				6,616,657				6,383,488				4 %		21 %		25%
Less loans held for sale 1	(53,788		)		(37,058		)		(38,833		)		(37,726		)		45 %		39 %		43%
Total loans receivable	$	7,948,672			$	7,670,030			$	6,577,824			$	6,345,762			4 %		21 %		25%

______________________________
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			AccruingLoans90 Daysor MorePast  Due			OtherReal EstateOwned
(Dollars in thousands)	Jun 30,  2018				Mar 31,  2018			Dec 31,  2017			Jun 30,  2017			Jun 30,  2018			Jun 30,  2018			Jun 30,  2018
Custom and owner occupied construction	$	48			48			48			177			—			—			48
Pre-sold and spec construction	492				492			38			272			492			—			—
Total residential construction	540				540			86			449			492			—			48
Land development	7,564				7,802			7,888			8,428			901			—			6,663
Consumer land or lots	1,593				1,622			1,861			1,868			510			—			1,083
Unimproved land	9,962				10,294			10,866			11,933			8,453			28			1,481
Developed lots for operative builders	126				83			116			116			43			—			83
Commercial lots	1,059				1,312			1,312			1,559			13			—			1,046
Other construction	155				319			151			151			17			—			138
Total land, lot and other construction	20,459				21,432			22,194			24,055			9,937			28			10,494
Owner occupied	12,891				12,594			13,848			17,757			11,251			113			1,527
Non-owner occupied	15,337				5,346			4,584			2,791			7,734			7,108			495
Total commercial real estate	28,228				17,940			18,432			20,548			18,985			7,221			2,022
Commercial and industrial	7,692				6,313			5,294			4,753			6,577			1,070			45
Agriculture	10,497				10,476			3,931			2,877			7,946			2,551			—
1st lien	9,725				8,717			9,261			9,057			7,964			1,426			335
Junior lien	3,257				4,271			567			727			3,220			37			—
Total 1-4 family	12,982				12,988			9,828			9,784			11,184			1,463			335
Multifamily residential	634				652			—			—			634			—			—
Home equity lines of credit	3,112				3,312			3,292			5,864			2,205			274			633
Other consumer	393				330			322			551			210			144			39
Total consumer	3,505				3,642			3,614			6,415			2,415			418			672
States and political subdivisions	—				—			1,800			—			—			—			—
Total	$	84,537			73,983			65,179			68,881			58,170			12,751			13,616

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,  2018				Mar 31,  2018				Dec 31,  2017				Jun 30,  2017				Mar 31,  2018		Dec 31,  2017		Jun 30,  2017
Custom and owner occupied construction	$	1,525			$	611			$	300			$	493			150 %		408 %		209 %
Pre-sold and spec construction	721				267				102				155				170 %		607 %		365 %
Total residential construction	2,246				878				402				648				156 %		459 %		247 %
Land development	728				585				—				—				24 %		n/m		n/m
Consumer land or lots	471				485				353				808				(3)%		33 %		(42)%
Unimproved land	1,450				889				662				1,115				63 %		119 %		30 %
Developed lots for operative builders	—				464				7				—				(100)%		(100)%		n/m
Commercial lots	—				194				108				—				(100)%		(100)%		n/m
Other construction	—				76				—				—				(100)%		n/m		n/m
Total land, lot and other construction	2,649				2,693				1,130				1,923				(2)%		134 %		38 %
Owner occupied	3,571				13,904				4,726				5,038				(74)%		(24)%		(29)%
Non-owner occupied	8,414				3,842				2,399				6,533				119 %		251 %		29 %
Total commercial real estate	11,985				17,746				7,125				11,571				(32)%		68 %		4 %
Commercial and industrial	5,745				5,746				6,472				5,825				— %		(11)%		(1)%
Agriculture	5,288				3,845				3,205				1,067				38 %		65 %		396 %
1st lien	5,132				9,597				10,865				2,859				(47)%		(53)%		80 %
Junior lien	989				240				4,348				815				312 %		(77)%		21 %
Total 1-4 family	6,121				9,837				15,213				3,674				(38)%		(60)%		67 %
Multifamily Residential	—				—				—				2,011				n/m		n/m		(100)%
Home equity lines of credit	3,940				2,316				1,962				2,819				70 %		101 %		40 %
Other consumer	1,665				1,849				2,109				1,572				(10)%		(21)%		6 %
Total consumer	5,605				4,165				4,071				4,391				35 %		38 %		28 %
Other	11				53				69				14				(79)%		(84)%		(21)%
Total	$	39,650			$	44,963			$	37,687			$	31,124			(12)%		5 %		27 %

______________________________
1	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)	Jun 30,  2018				Mar 31,  2018			Dec 31,  2017			Jun 30,  2017			Jun 30,  2018			Jun 30,  2018
Pre-sold and spec construction	$	(344	)		(339	)		(23	)		(15	)		17			361
Total residential construction	(344		)		(339	)		(23	)		(15	)		17			361
Land development	(107		)		(5	)		(143	)		(46	)		—			107
Consumer land or lots	(92		)		(3	)		222			(107	)		206			298
Unimproved land	(144		)		(73	)		(304	)		(110	)		—			144
Developed lots for operative builders	33				—			(107	)		(10	)		33			—
Commercial lots	4				(2	)		(6	)		(3	)		7			3
Other construction	—				—			389			390			—			—
Total land, lot and other construction	(306		)		(83	)		51			114			246			552
Owner occupied	1,000				962			3,908			853			1,084			84
Non-owner occupied	(4		)		(47	)		368			(2	)		59			63
Total commercial real estate	996				915			4,276			851			1,143			147
Commercial and industrial	1,471				1,430			883			494			1,922			451
Agriculture	44				(2	)		9			14			50			6
1st lien	(193		)		(65	)		(23	)		(32	)		47			240
Junior lien	(34		)		(29	)		719			746			47			81
Total 1-4 family	(227		)		(94	)		696			714			94			321
Multifamily residential	(6		)		(6	)		(230	)		(229	)		—			6
Home equity lines of credit	(38		)		(32	)		272			271			19			57
Other consumer	111				73			505			(8	)		258			147
Total consumer	73				41			777			263			277			204
Other	1,816				893			4,389			2,100			3,862			2,046
Total	$	3,517			2,755			10,828			4,306			7,611			4,094

Visit our website at www.glacierbancorp.com

 

CONTACT:Randall M. Chesler, CEO(406) 751-4722Ron J. Copher, CFO(406) 751-7706

Source: Glacier Bancorp, Inc.