GBCI 8-K
Glacier Bancorp, Inc. (GBCI)
8-K
2023-04-20
For: 2023-04-20
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Added on
April 08, 2026
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): April 20, 2023
____________________________________________________________
(Exact name of registrant as specified in its charter)
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| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
| (Registrant’s telephone number, including area code) | |||||||||||
____________________________________________________________
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:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On April 20, 2023, Glacier Bancorp, Inc. ("Company") issued a press release announcing its financial results for the quarter ended March 31, 2023. 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
(d) Exhibits
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
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.
| Dated: | April 20, 2023 | GLACIER BANCORP, INC. | |||||||||
| /s/ Randall M. Chesler | |||||||||||
| By: | Randall M. Chesler | ||||||||||
| President and Chief Executive Officer | |||||||||||
NEWS RELEASE
April 20, 2023
| FOR IMMEDIATE RELEASE | CONTACT: Randall M. Chesler, CEO | ||||
| (406) 751-4722 | |||||
| Ron J. Copher, CFO | |||||
| (406) 751-7706 | |||||
GLACIER BANCORP, INC. ANNOUNCES
RESULTS FOR THE QUARTER ENDED MARCH 31, 2023
1st Quarter 2023 Highlights:
•Net income was $61.2 million for the current quarter, a decrease of $18.5 million, or 23 percent, from the prior quarter net income of $79.7 million. Net income for the current quarter decreased $6.6 million, or 10 percent, from the prior year first quarter net income of $67.8 million.
•Interest income of $232 million in the current quarter increased $6.8 million, or 3 percent, over the prior quarter interest income of $225 million. Interest income in the current quarter increased $41.4 million, or 22 percent, over the prior year first quarter.
•Total deposits and retail repurchase agreements of $21.340 billion at the current quarter end increased $289 million, or 1 percent, during March and decreased $213 million, or 1 percent, during the current quarter.
•The loan portfolio of $15.519 billion, increased $272 million, or 7 percent annualized, during the current quarter.
•The loan yield for the current quarter of 5.02 percent, increased 19 basis points, compared to 4.83 percent in the prior quarter and increased 43 basis points from the prior year first quarter loan yield of 4.59 percent. New loan production yields for the quarter were 6.96 percent.
•The Company increased its cash position by $1.1 billion during the current quarter.
•Available liquidity of $15.1 billion including cash, borrowing capacity from the Federal Home Loan Bank (“FHLB”) and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.
•Non-performing assets as a percentage of subsidiary assets was 0.12 percent in the current and prior quarter, compared to 0.24 percent in the prior year first quarter.
•Stockholders’ equity of $2.927 billion increased $83.6 million, or 3 percent, during the current quarter.
•The Company declared a quarterly dividend of $0.33 per share. The Company has declared 152 consecutive quarterly dividends and has increased the dividend 49 times.
1
Financial Summary
| At or for the Three Months ended | |||||||||||||||||
(Dollars in thousands, except per share and market data) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||
| Operating results | |||||||||||||||||
| Net income | $ | 61,211 | 79,677 | 67,795 | |||||||||||||
| Basic earnings per share | $ | 0.55 | 0.72 | 0.61 | |||||||||||||
| Diluted earnings per share | $ | 0.55 | 0.72 | 0.61 | |||||||||||||
| Dividends declared per share | $ | 0.33 | 0.33 | 0.33 | |||||||||||||
| Market value per share | |||||||||||||||||
| Closing | $ | 42.01 | 49.42 | 50.28 | |||||||||||||
| High | $ | 50.03 | 59.70 | 60.69 | |||||||||||||
| Low | $ | 37.07 | 48.64 | 49.61 | |||||||||||||
| Selected ratios and other data | |||||||||||||||||
Number of common stock shares outstanding | 110,868,713 | 110,777,780 | 110,763,316 | ||||||||||||||
| Average outstanding shares - basic | 110,824,648 | 110,773,084 | 110,724,655 | ||||||||||||||
| Average outstanding shares - diluted | 110,881,708 | 110,872,127 | 110,800,001 | ||||||||||||||
| Return on average assets (annualized) | 0.93 | % | 1.19 | % | 1.06 | % | |||||||||||
| Return on average equity (annualized) | 8.54 | % | 11.35 | % | 8.97 | % | |||||||||||
| Efficiency ratio | 60.39 | % | 53.18 | % | 57.11 | % | |||||||||||
| Dividend payout | 60.00 | % | 45.83 | % | 54.10 | % | |||||||||||
| Loan to deposit ratio | 77.09 | % | 74.05 | % | 63.52 | % | |||||||||||
Number of full time equivalent employees | 3,390 | 3,390 | 3,439 | ||||||||||||||
| Number of locations | 222 | 221 | 223 | ||||||||||||||
| Number of ATMs | 263 | 265 | 273 | ||||||||||||||
KALISPELL, Mont., Apr 20, 2023 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $61.2 million for the current quarter, a decrease of $6.6 million, or 10 percent, from the $67.8 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.55 per share, a decrease of 10 percent from the prior year first quarter diluted earnings per share of $0.61. The decrease in net income versus the prior quarter and prior year first quarter is primarily due to the significant increase in funding costs. “The historic pace of the Federal Reserve interest rate increases and the banking crisis drove borrowing costs up further and impacted our profitability. Our ability to weather these events is a clear demonstration of the strength of our business model and our team,” said Randy Chesler, President and Chief Executive Officer. “We remain confident in the strength of our Company and the dynamic markets and customers we serve.”
2
Asset Summary
| $ Change from | |||||||||||||||||||||||||||||
| (Dollars in thousands) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 1,529,534 | 401,995 | 436,805 | 1,127,539 | 1,092,729 | |||||||||||||||||||||||
| Debt securities, available-for-sale | 5,198,313 | 5,307,307 | 6,535,763 | (108,994) | (1,337,450) | ||||||||||||||||||||||||
| Debt securities, held-to-maturity | 3,664,393 | 3,715,052 | 3,576,941 | (50,659) | 87,452 | ||||||||||||||||||||||||
| Total debt securities | 8,862,706 | 9,022,359 | 10,112,704 | (159,653) | (1,249,998) | ||||||||||||||||||||||||
| Loans receivable | |||||||||||||||||||||||||||||
| Residential real estate | 1,508,403 | 1,446,008 | 1,125,648 | 62,395 | 382,755 | ||||||||||||||||||||||||
| Commercial real estate | 9,992,019 | 9,797,047 | 8,865,585 | 194,972 | 1,126,434 | ||||||||||||||||||||||||
| Other commercial | 2,804,104 | 2,799,668 | 2,661,048 | 4,436 | 143,056 | ||||||||||||||||||||||||
| Home equity | 829,844 | 822,232 | 715,963 | 7,612 | 113,881 | ||||||||||||||||||||||||
| Other consumer | 384,242 | 381,857 | 362,775 | 2,385 | 21,467 | ||||||||||||||||||||||||
| Loans receivable | 15,518,612 | 15,246,812 | 13,731,019 | 271,800 | 1,787,593 | ||||||||||||||||||||||||
Allowance for credit losses | (186,604) | (182,283) | (176,159) | (4,321) | (10,445) | ||||||||||||||||||||||||
| Loans receivable, net | 15,332,008 | 15,064,529 | 13,554,860 | 267,479 | 1,777,148 | ||||||||||||||||||||||||
| Other assets | 2,078,186 | 2,146,492 | 1,995,955 | (68,306) | 82,231 | ||||||||||||||||||||||||
| Total assets | $ | 27,802,434 | 26,635,375 | 26,100,324 | 1,167,059 | 1,702,110 | |||||||||||||||||||||||
Total debt securities of $8.863 billion at March 31, 2023 decreased $160 million, or 2 percent, during the current quarter and decreased $1.250 billion, or 12 percent, from the prior year first quarter. The Company continues to utilize cash flow from the securities portfolio to primarily fund loan growth. Debt securities represented 32 percent of total assets at March 31, 2023 compared to 34 percent at December 31, 2022 and 39 percent at March 31, 2022. In addition, the Company increased its cash position by $1.1 billion during the current quarter to further strengthen its liquidity position.
The loan portfolio of $15.519 billion increased $272 million, or 7 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $195 million, or 8 percent annualized. The loan portfolio increased $1.788 billion, or 13 percent, from the prior year first quarter with the largest dollar increase in commercial real estate loans which increased $1.126 billion, or 13 percent.
3
Credit Quality Summary
| At or for the Three Months ended | At or for the Year ended | At or for the Three Months ended | |||||||||||||||
| (Dollars in thousands) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||
| Allowance for credit losses | |||||||||||||||||
| Balance at beginning of period | $ | 182,283 | 172,665 | 172,665 | |||||||||||||
| Provision for credit losses | 6,260 | 17,433 | 4,344 | ||||||||||||||
| Charge-offs | (3,293) | (14,970) | (2,695) | ||||||||||||||
| Recoveries | 1,354 | 7,155 | 1,845 | ||||||||||||||
| Balance at end of period | $ | 186,604 | 182,283 | 176,159 | |||||||||||||
| Provision for credit losses | |||||||||||||||||
| Loan portfolio | $ | 6,260 | 17,433 | 4,344 | |||||||||||||
| Unfunded loan commitments | (790) | 2,530 | 2,687 | ||||||||||||||
| Total provision for credit losses | $ | 5,470 | 19,963 | 7,031 | |||||||||||||
| Other real estate owned | $ | — | — | — | |||||||||||||
| Other foreclosed assets | 31 | 32 | 43 | ||||||||||||||
| Accruing loans 90 days or more past due | 3,545 | 1,559 | 4,510 | ||||||||||||||
| Non-accrual loans | 28,403 | 31,151 | 57,923 | ||||||||||||||
| Total non-performing assets | $ | 31,979 | 32,742 | 62,476 | |||||||||||||
Non-performing assets as a percentage of subsidiary assets | 0.12 | % | 0.12 | % | 0.24 | % | |||||||||||
Allowance for credit losses as a percentage of non-performing loans | 584 | % | 557 | % | 282 | % | |||||||||||
Allowance for credit losses as a percentage of total loans | 1.20 | % | 1.20 | % | 1.28 | % | |||||||||||
| Net charge-offs as a percentage of total loans | 0.01 | % | 0.05 | % | 0.01 | % | |||||||||||
| Accruing loans 30-89 days past due | $ | 24,993 | 20,967 | 16,080 | |||||||||||||
| U.S. government guarantees included in non-performing assets | $ | 2,071 | 2,312 | 5,068 | |||||||||||||
Non-performing assets of $32.0 million at March 31, 2023 decreased $763 thousand, or 2 percent, over the prior quarter and decreased $30.5 million, or 49 percent, over prior year first quarter. Non-performing assets as a percentage of subsidiary assets at March 31, 2023 was 0.12 percent compared to 0.12 percent in the prior quarter and 0.24 percent in the prior year first quarter.
Early stage delinquencies (accruing loans 30-89 days past due) of $24.9 million at March 31, 2023 increased $3.9 million from the prior quarter and increased $8.8 million from the prior year first quarter. Early stage delinquencies as a percentage of loans at March 31, 2023 was 16 basis points, which compared to 14 basis points in the prior quarter and 12 basis points from prior year first quarter.
The current quarter credit loss expense of $5.5 million included $6.3 million of credit loss expense from loans and $790 thousand of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at March 31, 2023 was 1.20 percent which was the same compared to the prior quarter and an 8 basis points decrease from the prior year first quarter.
4
Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio
| (Dollars in thousands) | Provision for Credit Losses Loans | Net Charge-Offs (Recoveries) | ACL as a Percent of Loans | Accruing Loans 30-89 Days Past Due as a Percent of Loans | Non-Performing Assets to Total Subsidiary Assets | ||||||||||||||||||||||||
| First quarter 2023 | $ | 6,260 | $ | 1,939 | 1.20 | % | 0.16 | % | 0.12 | % | |||||||||||||||||||
| Fourth quarter 2022 | 6,060 | 1,968 | 1.20 | % | 0.14 | % | 0.12 | % | |||||||||||||||||||||
| Third quarter 2022 | 8,382 | 3,154 | 1.20 | % | 0.07 | % | 0.13 | % | |||||||||||||||||||||
| Second quarter 2022 | (1,353) | 1,843 | 1.20 | % | 0.12 | % | 0.16 | % | |||||||||||||||||||||
| First quarter 2022 | 4,344 | 850 | 1.28 | % | 0.12 | % | 0.24 | % | |||||||||||||||||||||
| Fourth quarter 2021 | 19,301 | 616 | 1.29 | % | 0.38 | % | 0.26 | % | |||||||||||||||||||||
| Third quarter 2021 | 2,313 | 152 | 1.36 | % | 0.23 | % | 0.24 | % | |||||||||||||||||||||
| Second quarter 2021 | (5,723) | (725) | 1.35 | % | 0.11 | % | 0.26 | % | |||||||||||||||||||||
Net charge-offs for the current and prior quarter of $2.0 million compared to $850 thousand for the prior year first quarter. Net charge-offs of $2.0 million included $2.0 million in deposit overdraft net charge-offs and $31 thousand of net loan recoveries.
The current quarter provision for credit loss expense for loans was $6.3 million which was an increase of $200 thousand from the prior quarter and a $1.9 million increase from the prior year first quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans.
Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on regulatory classification is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.
5
Liability Summary
| $ Change from | |||||||||||||||||||||||||||||
| (Dollars in thousands) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||
| Non-interest bearing deposits | $ | 7,001,241 | 7,690,751 | 7,990,003 | (689,510) | (988,762) | |||||||||||||||||||||||
| NOW and DDA accounts | 5,156,709 | 5,330,614 | 5,376,881 | (173,905) | (220,172) | ||||||||||||||||||||||||
| Savings accounts | 2,985,351 | 3,200,321 | 3,287,521 | (214,970) | (302,170) | ||||||||||||||||||||||||
Money market deposit accounts | 3,429,123 | 3,472,281 | 4,044,655 | (43,158) | (615,532) | ||||||||||||||||||||||||
| Certificate accounts | 1,155,494 | 880,589 | 995,147 | 274,905 | 160,347 | ||||||||||||||||||||||||
| Core deposits, total | 19,727,918 | 20,574,556 | 21,694,207 | (846,638) | (1,966,289) | ||||||||||||||||||||||||
| Wholesale deposits | 420,390 | 31,999 | 3,688 | 388,391 | 416,702 | ||||||||||||||||||||||||
| Deposits, total | 20,148,308 | 20,606,555 | 21,697,895 | (458,247) | (1,549,587) | ||||||||||||||||||||||||
| Repurchase agreements | 1,191,323 | 945,916 | 958,479 | 245,407 | 232,844 | ||||||||||||||||||||||||
| Deposits and repurchase agreements, total | 21,339,631 | 21,552,471 | 22,656,374 | (212,840) | (1,316,743) | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 335,000 | 1,800,000 | 80,000 | (1,465,000) | 255,000 | ||||||||||||||||||||||||
| FRB Bank Term Funding | 2,740,000 | — | — | 2,740,000 | 2,740,000 | ||||||||||||||||||||||||
| Other borrowed funds | 76,185 | 77,293 | 57,258 | (1,108) | 18,927 | ||||||||||||||||||||||||
| Subordinated debentures | 132,822 | 132,782 | 132,661 | 40 | 161 | ||||||||||||||||||||||||
| Other liabilities | 251,892 | 229,524 | 239,838 | 22,368 | 12,054 | ||||||||||||||||||||||||
| Total liabilities | $ | 24,875,530 | 23,792,070 | 23,166,131 | 1,083,460 | 1,709,399 | |||||||||||||||||||||||
During the current quarter, the Company continued to focus on its diversified deposit and repurchase agreement product offerings. Total deposits and retail repurchase agreements of $21.340 billion at the current quarter end increased $289 million, or 1 percent, during March and decreased $213 million, or 1 percent, during the current quarter. Non-interest bearing deposits were 35 percent of total core deposits at March 31, 2023 compared to 37 percent at December 31, 2022 and March 31, 2022.
During the current quarter, the Company participated in the Bank Term Funding Program of the Federal Reserve Bank (“FRB”) which enabled the Company to pay off higher rate FHLB advances. The FHLB advances decreased $1.465 billion during the current quarter while FRB Bank Term funding increased $2.740 billion and was used to fund the FHLB pay down, support the additional $1.1 billion cash position and the current quarter decrease in deposits. The Company’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. The Company has available liquidity of $15.1 billion including cash, borrowing capacity from the FHLB and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.
6
Stockholders’ Equity Summary
| $ Change from | |||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||||||||||||
| Common equity | $ | 3,337,132 | 3,312,097 | 3,182,002 | 25,035 | 155,130 | |||||||||||||||||||||||
Accumulated other comprehensive loss | (410,228) | (468,792) | (247,809) | 58,564 | (162,419) | ||||||||||||||||||||||||
Total stockholders’ equity | 2,926,904 | 2,843,305 | 2,934,193 | 83,599 | (7,289) | ||||||||||||||||||||||||
Goodwill and core deposit intangible, net | (1,024,545) | (1,026,994) | (1,034,987) | 2,449 | 10,442 | ||||||||||||||||||||||||
Tangible stockholders’ equity | $ | 1,902,359 | 1,816,311 | 1,899,206 | 86,048 | 3,153 | |||||||||||||||||||||||
Stockholders’ equity to total assets | 10.53 | % | 10.67 | % | 11.24 | % | |||||||||||||||||||||||
Tangible stockholders’ equity to total tangible assets | 7.10 | % | 7.09 | % | 7.58 | % | |||||||||||||||||||||||
Book value per common share | $ | 26.40 | 25.67 | 26.49 | 0.73 | (0.09) | |||||||||||||||||||||||
Tangible book value per common share | $ | 17.16 | 16.40 | 17.15 | 0.76 | 0.01 | |||||||||||||||||||||||
Tangible stockholders’ equity of $1.902 billion at March 31, 2023 increased $86.0 million, or 5 percent, from the prior quarter which was primarily due to earnings retention and the decrease in the net unrealized loss (after-tax) on the AFS debt securities. Accumulated other comprehensive income (“AOCI”) includes the net unrealized loss (after-tax) on AFS debt securities. AOCI does not include $278 million of net unrealized loss on HTM debt securities. Tangible book value per common share of $17.16 at the current quarter end increased $0.76 per share, or 5 percent, from the prior quarter. The tangible book value per common share increased $0.01 per share from the prior year first quarter.
Cash Dividends
On March 29, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share The current quarter dividend of $0.33 per share was consistent with the dividend declared in the prior quarter and the prior year first quarter. The dividend was payable April 20, 2023 to shareholders of record on April 11, 2023. The dividend was the Company’s 152nd consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.
7
Operating Results for Three Months Ended March 31, 2023
Compared to December 31, 2022, and March 31, 2022
Income Summary
| Three Months ended | $ Change from | ||||||||||||||||||||||||||||
| (Dollars in thousands) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||||||||||||
| Net interest income | |||||||||||||||||||||||||||||
| Interest income | $ | 231,888 | 225,085 | 190,516 | 6,803 | 41,372 | |||||||||||||||||||||||
| Interest expense | 45,696 | 21,026 | 4,961 | 24,670 | 40,735 | ||||||||||||||||||||||||
| Total net interest income | 186,192 | 204,059 | 185,555 | (17,867) | 637 | ||||||||||||||||||||||||
| Non-interest income | |||||||||||||||||||||||||||||
Service charges and other fees | 17,771 | 18,734 | 17,111 | (963) | 660 | ||||||||||||||||||||||||
| Miscellaneous loan fees and charges | 3,967 | 3,905 | 3,555 | 62 | 412 | ||||||||||||||||||||||||
| Gain on sale of loans | 2,400 | 2,175 | 9,015 | 225 | (6,615) | ||||||||||||||||||||||||
| (Loss) gain on sale of investments | (114) | 519 | 446 | (633) | (560) | ||||||||||||||||||||||||
| Other income | 3,871 | 3,150 | 3,436 | 721 | 435 | ||||||||||||||||||||||||
| Total non-interest income | 27,895 | 28,483 | 33,563 | (588) | (5,668) | ||||||||||||||||||||||||
| Total income | 214,087 | 232,542 | 219,118 | (18,455) | (5,031) | ||||||||||||||||||||||||
Net interest margin (tax-equivalent) | 3.08 | % | 3.30 | % | 3.20 | % | |||||||||||||||||||||||
Net Interest Income
The current quarter interest income of $232 million increased $6.8 million, or 3 percent, over the prior quarter and was driven primarily by the increase in the loan portfolio and an increase in loan yields. The current quarter interest income increased $41.4 million, or 22 percent, over the prior year first quarter also due to loan growth and increased loan yields.
The current quarter interest expense of $45.7 million increased $24.7 million, or 117 percent, over the prior quarter and increased $40.7 million, or 821 percent, over the prior year first quarter primarily the result of an increase in rates on deposits and borrowings along with increased use of borrowing programs. Core deposit cost (including non-interest bearing deposits) was 23 basis points for the current quarter compared to 8 basis points in the prior quarter and 7 basis points for the prior year first quarter. The total cost of funding (including non-interest bearing deposits) was 79 basis points in the current quarter compared to 35 basis points in the prior quarter and 9 basis points in the prior year first quarter which was the result of the increased deposit and borrowing rates.
The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.08 percent compared to 3.30 percent in the prior quarter and 3.20 percent in the prior year first quarter. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 3.07 percent compared to 3.27 percent in the prior quarter and 3.07 percent in the prior year first quarter. The core net interest margin decreased 20 basis points in the current quarter primarily as a result of increased deposit and borrowing rates. The loan yield of 5.02 percent in the current quarter increased 19 basis points from the prior quarter loan yield of 4.83 percent and increased 43 basis points from the prior year first quarter core loan yield of 4.59 percent. New loan production yields for the quarter were 6.96 percent.
8
Non-interest Income
Non-interest income for the current quarter totaled $27.9 million which was a decrease of $588 thousand, or 2 percent, over the prior quarter. Current quarter non-interest income decreased $5.7 million, or 17 percent, over the same quarter last year which was primarily driven by the decrease in gain on sale of residential loans. Gain on the sale of residential loans of $2.4 million for the current quarter increased $225 thousand, or 10 percent, compared to the prior quarter and decreased $6.6 million, or 73 percent, from the prior year first quarter.
Non-interest Expense Summary
| Three Months ended | $ Change from | ||||||||||||||||||||||||||||
| (Dollars in thousands) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||||||||||||
| Compensation and employee benefits | $ | 81,477 | 79,814 | 79,074 | 1,663 | 2,403 | |||||||||||||||||||||||
| Occupancy and equipment | 11,665 | 10,734 | 10,964 | 931 | 701 | ||||||||||||||||||||||||
| Advertising and promotions | 4,235 | 3,558 | 3,232 | 677 | 1,003 | ||||||||||||||||||||||||
| Data processing | 8,109 | 8,079 | 7,475 | 30 | 634 | ||||||||||||||||||||||||
| Other real estate owned and foreclosed assets | 12 | 5 | — | 7 | 12 | ||||||||||||||||||||||||
| Regulatory assessments and insurance | 4,903 | 3,425 | 3,055 | 1,478 | 1,848 | ||||||||||||||||||||||||
| Core deposit intangibles amortization | 2,449 | 2,664 | 2,664 | (215) | (215) | ||||||||||||||||||||||||
| Other expenses | 22,132 | 20,700 | 23,844 | 1,432 | (1,712) | ||||||||||||||||||||||||
| Total non-interest expense | $ | 134,982 | 128,979 | 130,308 | 6,003 | 4,674 | |||||||||||||||||||||||
Total non-interest expense of $135 million for the current quarter increased $6.0 million, or 5 percent, over the prior quarter and increased $4.7 million, or 4 percent, over the prior year first quarter. “In the current quarter, the Company has done well to limit the growth in its non-interest expense given the inflationary pressure across many expense areas,” said Ron Copher, Chief Financial Officer.
Compensation and employee expense of $81.5 million for the current quarter increased $1.7 million, or 2 percent, from the prior quarter and increased $2.4 million, or 3 percent, over the prior year first quarter which was driven primarily by annual salary increases. Regulatory assessments and insurance of $4.9 million, increased $1.5 million, or 43 percent, over the prior quarter and $1.8 million, or 60 percent, over the prior year first quarter and was primarily due to the FDIC uniformly increasing all depository institutions premiums in the current quarter. Other expense of $22.1 million in the current quarter increased $1.4 million, or 7 percent, over prior quarter due to a $2.5 million gain on sale of former branch in the prior quarter. Other expense in the current quarter decreased by $1.7 million, or 7 percent, over the prior year first quarter primarily as a result of a decrease in acquisition-related expense which was partially offset by increases in several miscellaneous expense categories. Acquisition-related expense was $352 thousand in the current quarter compared to $804 thousand in the prior quarter and $6.2 million in the prior year first quarter.
Federal and State Income Tax Expense
Tax expense during the first quarter of 2023 was $12.4 million, a decrease of $5.3 million, or 30 percent, compared to the prior quarter and a decrease of $1.6 million, or 11 percent, from the prior year first quarter. The effective tax rate in the current quarter was 16.9 percent compared to 18.2 percent in the prior quarter and 17.1 percent in the prior year first quarter.
Efficiency Ratio
The efficiency ratio was 60.39 percent in the current quarter compared to 53.18 percent in the prior quarter and 57.11 percent in the prior year first quarter. The increase from prior quarter and prior year first quarter was primarily attributable to the increase in interest expense and non-interest expense in the current quarter.
9
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 the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those made in this news release:
•risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
•changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
•legislative or regulatory changes, including increased banking and consumer protection regulations, that may adversely affect the Company’s business;
•risks related to overall economic conditions, including the impact on the economy of a rising interest rate environment, inflationary pressures, and geopolitical instability, including the war in Ukraine;
•risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;
•costs or difficulties related to the completion and integration of acquisitions;
•impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
•reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
•deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company's ability to obtain and maintain customers;
•changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
•risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;
•risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
•material failure, potential interruption or breach in security of the Company’s systems or changes in technological which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
•risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
•success in managing risks involved in the foregoing; and
•effects of any reputational damage to the Company resulting from any of the foregoing.
The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.
10
Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, April 21, 2023. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BIf72fb20b6829459481a06c788c220716. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/yix5vmcy. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.
About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. (NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions located across its eight state Western U.S. footprint: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), North Cascades Bank (Chelan, WA), The Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), and Western Security Bank (Billings, MT).
11
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
| (Dollars in thousands, except per share data) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||
| Assets | |||||||||||||||||
| Cash on hand and in banks | $ | 290,960 | 300,194 | 282,335 | |||||||||||||
| Interest bearing cash deposits | 1,238,574 | 101,801 | 154,470 | ||||||||||||||
| Cash and cash equivalents | 1,529,534 | 401,995 | 436,805 | ||||||||||||||
| Debt securities, available-for-sale | 5,198,313 | 5,307,307 | 6,535,763 | ||||||||||||||
| Debt securities, held-to-maturity | 3,664,393 | 3,715,052 | 3,576,941 | ||||||||||||||
| Total debt securities | 8,862,706 | 9,022,359 | 10,112,704 | ||||||||||||||
| Loans held for sale, at fair value | 14,461 | 12,314 | 51,284 | ||||||||||||||
| Loans receivable | 15,518,612 | 15,246,812 | 13,731,019 | ||||||||||||||
| Allowance for credit losses | (186,604) | (182,283) | (176,159) | ||||||||||||||
| Loans receivable, net | 15,332,008 | 15,064,529 | 13,554,860 | ||||||||||||||
| Premises and equipment, net | 399,740 | 398,100 | 373,123 | ||||||||||||||
| Other real estate owned and foreclosed assets | 31 | 32 | 43 | ||||||||||||||
| Accrued interest receivable | 90,642 | 83,538 | 81,467 | ||||||||||||||
| Deferred tax asset | 172,453 | 193,187 | 120,025 | ||||||||||||||
| Core deposit intangible, net | 39,152 | 41,601 | 49,594 | ||||||||||||||
| Goodwill | 985,393 | 985,393 | 985,393 | ||||||||||||||
| Non-marketable equity securities | 23,414 | 82,015 | 13,217 | ||||||||||||||
| Bank-owned life insurance | 168,235 | 169,068 | 167,298 | ||||||||||||||
| Other assets | 184,665 | 181,244 | 154,511 | ||||||||||||||
| Total assets | $ | 27,802,434 | 26,635,375 | 26,100,324 | |||||||||||||
| Liabilities | |||||||||||||||||
| Non-interest bearing deposits | $ | 7,001,241 | 7,690,751 | 7,990,003 | |||||||||||||
| Interest bearing deposits | 13,147,067 | 12,915,804 | 13,707,892 | ||||||||||||||
| Securities sold under agreements to repurchase | 1,191,323 | 945,916 | 958,479 | ||||||||||||||
| FHLB advances | 335,000 | 1,800,000 | 80,000 | ||||||||||||||
| FRB Bank Term Funding | 2,740,000 | — | — | ||||||||||||||
| Other borrowed funds | 76,185 | 77,293 | 57,258 | ||||||||||||||
| Subordinated debentures | 132,822 | 132,782 | 132,661 | ||||||||||||||
| Accrued interest payable | 8,968 | 4,331 | 2,284 | ||||||||||||||
| Other liabilities | 242,924 | 225,193 | 237,554 | ||||||||||||||
| Total liabilities | 24,875,530 | 23,792,070 | 23,166,131 | ||||||||||||||
| Commitments and Contingent Liabilities | — | — | — | ||||||||||||||
| Stockholders’ Equity | |||||||||||||||||
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding | — | — | — | ||||||||||||||
Common stock, $0.01 par value per share, 234,000,000 shares authorized at March 31, 2023 and December 31, 2022 and 117,187,500 shares authorized at March 31, 2022 | 1,109 | 1,108 | 1,108 | ||||||||||||||
| Paid-in capital | 2,344,514 | 2,344,005 | 2,339,405 | ||||||||||||||
| Retained earnings - substantially restricted | 991,509 | 966,984 | 841,489 | ||||||||||||||
| Accumulated other comprehensive loss | (410,228) | (468,792) | (247,809) | ||||||||||||||
| Total stockholders’ equity | 2,926,904 | 2,843,305 | 2,934,193 | ||||||||||||||
| Total liabilities and stockholders’ equity | $ | 27,802,434 | 26,635,375 | 26,100,324 | |||||||||||||
12
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
| Three Months ended | |||||||||||||||||
| (Dollars in thousands, except per share data) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||
| Interest Income | |||||||||||||||||
| Investment securities | $ | 43,642 | 43,818 | 38,654 | |||||||||||||
| Residential real estate loans | 15,838 | 14,964 | 15,515 | ||||||||||||||
| Commercial loans | 155,682 | 150,462 | 124,556 | ||||||||||||||
| Consumer and other loans | 16,726 | 15,841 | 11,791 | ||||||||||||||
| Total interest income | 231,888 | 225,085 | 190,516 | ||||||||||||||
| Interest Expense | |||||||||||||||||
| Deposits | 12,545 | 4,642 | 3,464 | ||||||||||||||
Securities sold under agreements to repurchase | 4,606 | 1,765 | 393 | ||||||||||||||
| Federal Home Loan Bank advances | 23,605 | 12,689 | 12 | ||||||||||||||
| FRB Bank Term Funding | 3,032 | — | — | ||||||||||||||
Other borrowed funds | 496 | 464 | 220 | ||||||||||||||
| Subordinated debentures | 1,412 | 1,466 | 872 | ||||||||||||||
| Total interest expense | 45,696 | 21,026 | 4,961 | ||||||||||||||
| Net Interest Income | 186,192 | 204,059 | 185,555 | ||||||||||||||
| Provision for credit losses | 5,470 | 6,124 | 7,031 | ||||||||||||||
Net interest income after provision for credit losses | 180,722 | 197,935 | 178,524 | ||||||||||||||
| Non-Interest Income | |||||||||||||||||
| Service charges and other fees | 17,771 | 18,734 | 17,111 | ||||||||||||||
| Miscellaneous loan fees and charges | 3,967 | 3,905 | 3,555 | ||||||||||||||
| Gain on sale of loans | 2,400 | 2,175 | 9,015 | ||||||||||||||
| (Loss) gain on sale of debt securities | (114) | 519 | 446 | ||||||||||||||
| Other income | 3,871 | 3,150 | 3,436 | ||||||||||||||
| Total non-interest income | 27,895 | 28,483 | 33,563 | ||||||||||||||
| Non-Interest Expense | |||||||||||||||||
| Compensation and employee benefits | 81,477 | 79,814 | 79,074 | ||||||||||||||
| Occupancy and equipment | 11,665 | 10,734 | 10,964 | ||||||||||||||
| Advertising and promotions | 4,235 | 3,558 | 3,232 | ||||||||||||||
| Data processing | 8,109 | 8,079 | 7,475 | ||||||||||||||
| Other real estate owned and foreclosed assets | 12 | 5 | — | ||||||||||||||
Regulatory assessments and insurance | 4,903 | 3,425 | 3,055 | ||||||||||||||
| Core deposit intangibles amortization | 2,449 | 2,664 | 2,664 | ||||||||||||||
| Other expenses | 22,132 | 20,700 | 23,844 | ||||||||||||||
| Total non-interest expense | 134,982 | 128,979 | 130,308 | ||||||||||||||
| Income Before Income Taxes | 73,635 | 97,439 | 81,779 | ||||||||||||||
| Federal and state income tax expense | 12,424 | 17,762 | 13,984 | ||||||||||||||
| Net Income | $ | 61,211 | 79,677 | 67,795 | |||||||||||||
13
Glacier Bancorp, Inc.
Average Balance Sheets
| Three Months ended | |||||||||||||||||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest & Dividends | Average Yield/ Rate | Average Balance | Interest & Dividends | Average Yield/ Rate | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Residential real estate loans | $ | 1,493,938 | $ | 15,838 | 4.24 | % | $ | 1,424,550 | $ | 14,964 | 4.20 | % | |||||||||||||||||||||||
Commercial loans 1 | 12,655,551 | 157,456 | 5.05 | % | 12,419,414 | 152,169 | 4.86 | % | |||||||||||||||||||||||||||
| Consumer and other loans | 1,207,315 | 16,726 | 5.62 | % | 1,183,727 | 15,841 | 5.31 | % | |||||||||||||||||||||||||||
Total loans 2 | 15,356,804 | 190,020 | 5.02 | % | 15,027,691 | 182,974 | 4.83 | % | |||||||||||||||||||||||||||
Tax-exempt debt securities 3 | 1,761,533 | 16,030 | 3.64 | % | 1,960,007 | 17,877 | 3.65 | % | |||||||||||||||||||||||||||
Taxable debt securities 4 | 8,052,662 | 31,084 | 1.54 | % | 8,200,203 | 29,717 | 1.45 | % | |||||||||||||||||||||||||||
| Total earning assets | 25,170,999 | 237,134 | 3.82 | % | 25,187,901 | 230,568 | 3.63 | % | |||||||||||||||||||||||||||
| Goodwill and intangibles | 1,025,716 | 1,028,277 | |||||||||||||||||||||||||||||||||
| Non-earning assets | 478,962 | 436,260 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 26,675,677 | $ | 26,652,438 | |||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | $ | 7,274,228 | $ | — | — | % | $ | 8,010,053 | $ | — | — | % | |||||||||||||||||||||||
| NOW and DDA accounts | 5,080,175 | 2,271 | 0.18 | % | 5,388,062 | 1,077 | 0.08 | % | |||||||||||||||||||||||||||
| Savings accounts | 3,107,559 | 514 | 0.07 | % | 3,255,091 | 355 | 0.04 | % | |||||||||||||||||||||||||||
| Money market deposit accounts | 3,468,953 | 5,834 | 0.68 | % | 3,679,866 | 2,168 | 0.23 | % | |||||||||||||||||||||||||||
| Certificate accounts | 984,770 | 2,584 | 1.06 | % | 882,490 | 834 | 0.37 | % | |||||||||||||||||||||||||||
| Total core deposits | 19,915,685 | 11,203 | 0.23 | % | 21,215,562 | 4,434 | 0.08 | % | |||||||||||||||||||||||||||
Wholesale deposits 5 | 120,468 | 1,342 | 4.52 | % | 22,462 | 208 | 3.69 | % | |||||||||||||||||||||||||||
| Repurchase agreements | 1,035,582 | 4,606 | 1.80 | % | 873,819 | 1,765 | 0.80 | % | |||||||||||||||||||||||||||
| FHLB advances | 1,990,833 | 23,605 | 4.74 | % | 1,291,087 | 12,689 | 3.85 | % | |||||||||||||||||||||||||||
| FRB Bank Term Funding | 280,944 | 3,032 | 4.32 | % | — | — | — | % | |||||||||||||||||||||||||||
| Subordinated debentures and other borrowed funds | 209,547 | 1,908 | 3.69 | % | 211,953 | 1,930 | 3.61 | % | |||||||||||||||||||||||||||
| Total funding liabilities | 23,553,059 | 45,696 | 0.79 | % | 23,614,883 | 21,026 | 0.35 | % | |||||||||||||||||||||||||||
| Other liabilities | 217,245 | 252,298 | |||||||||||||||||||||||||||||||||
| Total liabilities | 23,770,304 | 23,867,181 | |||||||||||||||||||||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
| Common stock | 1,108 | 1,108 | |||||||||||||||||||||||||||||||||
| Paid-in capital | 2,344,301 | 2,343,157 | |||||||||||||||||||||||||||||||||
| Retained earnings | 998,340 | 946,195 | |||||||||||||||||||||||||||||||||
| Accumulated other comprehensive loss | (438,376) | (505,203) | |||||||||||||||||||||||||||||||||
| Total stockholders’ equity | 2,905,373 | 2,785,257 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 26,675,677 | $ | 26,652,438 | |||||||||||||||||||||||||||||||
| Net interest income (tax-equivalent) | $ | 191,438 | $ | 209,542 | |||||||||||||||||||||||||||||||
| Net interest spread (tax-equivalent) | 3.03 | % | 3.28 | % | |||||||||||||||||||||||||||||||
| Net interest margin (tax-equivalent) | 3.08 | % | 3.30 | % | |||||||||||||||||||||||||||||||
______________________________
1 Includes tax effect of $1.8 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2023 and December 31, 2022, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.3 million and $3.6 million on tax-exempt debt securities income for the three months ended March 31, 2023 and December 31, 2022, respectively.
4 Includes tax effect of $215 thousand and $225 thousand on federal income tax credits for the three months ended March 31, 2023 and December 31, 2022, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
14
Glacier Bancorp, Inc.
Average Balance Sheets (continued)
| Three Months ended | |||||||||||||||||||||||||||||||||||
| March 31, 2023 | March 31, 2022 | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest & Dividends | Average Yield/ Rate | Average Balance | Interest & Dividends | Average Yield/ Rate | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Residential real estate loans | $ | 1,493,938 | $ | 15,838 | 4.24 | % | $ | 1,140,224 | $ | 15,515 | 5.44 | % | |||||||||||||||||||||||
Commercial loans 1 | 12,655,551 | 157,456 | 5.05 | % | 11,318,767 | 125,919 | 4.51 | % | |||||||||||||||||||||||||||
| Consumer and other loans | 1,207,315 | 16,726 | 5.62 | % | 1,075,102 | 11,791 | 4.45 | % | |||||||||||||||||||||||||||
Total loans 2 | 15,356,804 | 190,020 | 5.02 | % | 13,534,093 | 153,225 | 4.59 | % | |||||||||||||||||||||||||||
Tax-exempt debt securities 3 | 1,761,533 | 16,030 | 3.64 | % | 1,723,125 | 15,664 | 3.64 | % | |||||||||||||||||||||||||||
Taxable debt securities 4 | 8,052,662 | 31,084 | 1.54 | % | 8,883,211 | 26,465 | 1.19 | % | |||||||||||||||||||||||||||
| Total earning assets | 25,170,999 | 237,134 | 3.82 | % | 24,140,429 | 195,354 | 3.28 | % | |||||||||||||||||||||||||||
| Goodwill and intangibles | 1,025,716 | 1,036,315 | |||||||||||||||||||||||||||||||||
| Non-earning assets | 478,962 | 756,422 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 26,675,677 | $ | 25,933,166 | |||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | $ | 7,274,228 | $ | — | — | % | $ | 7,859,706 | $ | — | — | % | |||||||||||||||||||||||
| NOW and DDA accounts | 5,080,175 | 2,271 | 0.18 | % | 5,279,984 | 845 | 0.06 | % | |||||||||||||||||||||||||||
| Savings accounts | 3,107,559 | 514 | 0.07 | % | 3,246,512 | 332 | 0.04 | % | |||||||||||||||||||||||||||
| Money market deposit accounts | 3,468,953 | 5,834 | 0.68 | % | 4,030,795 | 1,381 | 0.14 | % | |||||||||||||||||||||||||||
| Certificate accounts | 984,770 | 2,584 | 1.06 | % | 1,019,595 | 897 | 0.36 | % | |||||||||||||||||||||||||||
| Total core deposits | 19,915,685 | 11,203 | 0.23 | % | 21,436,592 | 3,455 | 0.07 | % | |||||||||||||||||||||||||||
Wholesale deposits 5 | 120,468 | 1,342 | 4.52 | % | 17,191 | 9 | 0.22 | % | |||||||||||||||||||||||||||
| Repurchase agreements | 1,035,582 | 4,606 | 1.80 | % | 970,544 | 393 | 0.16 | % | |||||||||||||||||||||||||||
| FHLB advances | 1,990,833 | 23,605 | 4.74 | % | 15,000 | 12 | 0.33 | % | |||||||||||||||||||||||||||
| FRB Bank Term Funding | 280,944 | 3,032 | 4.32 | % | — | — | — | % | |||||||||||||||||||||||||||
| Subordinated debentures and other borrowed funds | 209,547 | 1,908 | 3.69 | % | 179,725 | 1,092 | 2.46 | % | |||||||||||||||||||||||||||
| Total funding liabilities | 23,553,059 | 45,696 | 0.79 | % | 22,619,052 | 4,961 | 0.09 | % | |||||||||||||||||||||||||||
| Other liabilities | 217,245 | 249,316 | |||||||||||||||||||||||||||||||||
| Total liabilities | 23,770,304 | 22,868,368 | |||||||||||||||||||||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
| Common stock | 1,108 | 1,107 | |||||||||||||||||||||||||||||||||
| Paid-in capital | 2,344,301 | 2,338,887 | |||||||||||||||||||||||||||||||||
| Retained earnings | 998,340 | 847,172 | |||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (438,376) | (122,368) | |||||||||||||||||||||||||||||||||
| Total stockholders’ equity | 2,905,373 | 3,064,798 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 26,675,677 | $ | 25,933,166 | |||||||||||||||||||||||||||||||
| Net interest income (tax-equivalent) | $ | 191,438 | $ | 190,393 | |||||||||||||||||||||||||||||||
| Net interest spread (tax-equivalent) | 3.03 | % | 3.19 | % | |||||||||||||||||||||||||||||||
| Net interest margin (tax-equivalent) | 3.08 | % | 3.20 | % | |||||||||||||||||||||||||||||||
1 Includes tax effect of $1.8 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2023 and 2022, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $3.3 million and $3.3 million on tax-exempt debt securities income for the three months ended March 31, 2023 and 2022, respectively.
4 Includes tax effect of $215 thousand and $225 thousand on federal income tax credits for the three months ended March 31, 2023 and 2022, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
15
Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
| Loans Receivable, by Loan Type | % Change from | ||||||||||||||||||||||||||||
| (Dollars in thousands) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||||||||||||
Custom and owner occupied construction | $ | 295,604 | $ | 298,461 | $ | 265,579 | (1) | % | 11 | % | |||||||||||||||||||
| Pre-sold and spec construction | 312,715 | 297,895 | 258,429 | 5 | % | 21 | % | ||||||||||||||||||||||
Total residential construction | 608,319 | 596,356 | 524,008 | 2 | % | 16 | % | ||||||||||||||||||||||
| Land development | 230,823 | 219,842 | 180,270 | 5 | % | 28 | % | ||||||||||||||||||||||
| Consumer land or lots | 187,498 | 206,604 | 184,217 | (9) | % | 2 | % | ||||||||||||||||||||||
| Unimproved land | 104,811 | 104,662 | 90,498 | — | % | 16 | % | ||||||||||||||||||||||
Developed lots for operative builders | 69,896 | 60,987 | 61,276 | 15 | % | 14 | % | ||||||||||||||||||||||
| Commercial lots | 91,780 | 93,952 | 98,403 | (2) | % | (7) | % | ||||||||||||||||||||||
| Other construction | 965,244 | 938,406 | 833,218 | 3 | % | 16 | % | ||||||||||||||||||||||
Total land, lot, and other construction | 1,650,052 | 1,624,453 | 1,447,882 | 2 | % | 14 | % | ||||||||||||||||||||||
| Owner occupied | 2,885,798 | 2,833,469 | 2,675,681 | 2 | % | 8 | % | ||||||||||||||||||||||
| Non-owner occupied | 3,631,158 | 3,531,673 | 3,190,519 | 3 | % | 14 | % | ||||||||||||||||||||||
Total commercial real estate | 6,516,956 | 6,365,142 | 5,866,200 | 2 | % | 11 | % | ||||||||||||||||||||||
| Commercial and industrial | 1,353,919 | 1,377,888 | 1,378,500 | (2) | % | (2) | % | ||||||||||||||||||||||
| Agriculture | 715,863 | 735,553 | 731,248 | (3) | % | (2) | % | ||||||||||||||||||||||
| 1st lien | 1,864,294 | 1,808,502 | 1,466,279 | 3 | % | 27 | % | ||||||||||||||||||||||
| Junior lien | 42,397 | 40,445 | 33,438 | 5 | % | 27 | % | ||||||||||||||||||||||
| Total 1-4 family | 1,906,691 | 1,848,947 | 1,499,717 | 3 | % | 27 | % | ||||||||||||||||||||||
| Multifamily residential | 649,148 | 622,185 | 545,483 | 4 | % | 19 | % | ||||||||||||||||||||||
| Home equity lines of credit | 893,037 | 872,899 | 753,362 | 2 | % | 19 | % | ||||||||||||||||||||||
| Other consumer | 224,125 | 220,035 | 207,827 | 2 | % | 8 | % | ||||||||||||||||||||||
| Total consumer | 1,117,162 | 1,092,934 | 961,189 | 2 | % | 16 | % | ||||||||||||||||||||||
| States and political subdivisions | 806,878 | 797,656 | 659,742 | 1 | % | 22 | % | ||||||||||||||||||||||
| Other | 208,085 | 198,012 | 168,334 | 5 | % | 24 | % | ||||||||||||||||||||||
Total loans receivable, including loans held for sale | 15,533,073 | 15,259,126 | 13,782,303 | 2 | % | 13 | % | ||||||||||||||||||||||
Less loans held for sale 1 | (14,461) | (12,314) | (51,284) | 17 | % | (72) | % | ||||||||||||||||||||||
| Total loans receivable | $ | 15,518,612 | $ | 15,246,812 | $ | 13,731,019 | 2 | % | 13 | % | |||||||||||||||||||
______________________________
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 and foreclosed assets | ||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Mar 31, 2023 | Mar 31, 2023 | Mar 31, 2023 | |||||||||||||||||||||||||||||
Custom and owner occupied construction | $ | 220 | 224 | 233 | 220 | — | — | ||||||||||||||||||||||||||||
| Pre-sold and spec construction | 1,548 | 389 | — | — | 1,548 | — | |||||||||||||||||||||||||||||
Total residential construction | 1,768 | 613 | 233 | 220 | 1,548 | — | |||||||||||||||||||||||||||||
| Land development | 129 | 138 | 240 | 129 | — | — | |||||||||||||||||||||||||||||
| Consumer land or lots | 112 | 278 | 160 | 112 | — | — | |||||||||||||||||||||||||||||
| Unimproved land | 51 | 78 | 128 | 51 | — | — | |||||||||||||||||||||||||||||
Developed lots for operative builders | 607 | 251 | — | — | 607 | — | |||||||||||||||||||||||||||||
| Commercial lots | 188 | — | — | 141 | 47 | — | |||||||||||||||||||||||||||||
| Other construction | 12,884 | 12,884 | 12,884 | 12,884 | — | — | |||||||||||||||||||||||||||||
Total land, lot and other construction | 13,971 | 13,629 | 13,412 | 13,317 | 654 | — | |||||||||||||||||||||||||||||
| Owner occupied | 2,682 | 2,076 | 3,508 | 2,424 | 258 | — | |||||||||||||||||||||||||||||
| Non-owner occupied | 4,544 | 805 | 1,526 | 4,539 | 5 | — | |||||||||||||||||||||||||||||
Total commercial real estate | 7,226 | 2,881 | 5,034 | 6,963 | 263 | — | |||||||||||||||||||||||||||||
| Commercial and Industrial | 2,001 | 3,326 | 4,252 | 1,715 | 262 | 24 | |||||||||||||||||||||||||||||
| Agriculture | 2,573 | 2,574 | 28,801 | 2,208 | 365 | — | |||||||||||||||||||||||||||||
| 1st lien | 2,015 | 2,678 | 2,015 | 1,950 | 65 | — | |||||||||||||||||||||||||||||
| Junior lien | 111 | 166 | 301 | 105 | 6 | — | |||||||||||||||||||||||||||||
| Total 1-4 family | 2,126 | 2,844 | 2,316 | 2,055 | 71 | — | |||||||||||||||||||||||||||||
| Multifamily residential | — | 4,535 | 6,469 | — | — | — | |||||||||||||||||||||||||||||
| Home equity lines of credit | 1,225 | 1,393 | 1,416 | 1,042 | 183 | — | |||||||||||||||||||||||||||||
| Other consumer | 1,062 | 911 | 543 | 883 | 172 | 7 | |||||||||||||||||||||||||||||
| Total consumer | 2,287 | 2,304 | 1,959 | 1,925 | 355 | 7 | |||||||||||||||||||||||||||||
| Other | 27 | 36 | — | — | 27 | — | |||||||||||||||||||||||||||||
| Total | $ | 31,979 | 32,742 | 62,476 | 28,403 | 3,545 | 31 | ||||||||||||||||||||||||||||
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) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Dec 31, 2022 | Mar 31, 2022 | ||||||||||||||||||||||||
Custom and owner occupied construction | $ | 1,624 | $ | 1,082 | $ | 703 | 50 | % | 131 | % | |||||||||||||||||||
| Pre-sold and spec construction | — | 1,712 | — | (100) | % | n/m | |||||||||||||||||||||||
Total residential construction | 1,624 | 2,794 | 703 | (42) | % | 131 | % | ||||||||||||||||||||||
| Land development | 946 | — | 317 | n/m | 198 | % | |||||||||||||||||||||||
| Consumer land or lots | 668 | 442 | 28 | 51 | % | 2,286 | % | ||||||||||||||||||||||
| Unimproved land | — | 120 | — | (100) | % | n/m | |||||||||||||||||||||||
Developed lots for operative builders | — | 958 | 142 | (100) | % | (100) | % | ||||||||||||||||||||||
| Commercial lots | — | 47 | 54 | (100) | % | (100) | % | ||||||||||||||||||||||
| Other construction | 5,264 | 209 | — | 2,419 | % | n/m | |||||||||||||||||||||||
Total land, lot and other construction | 6,878 | 1,776 | 541 | 287 | % | 1,171 | % | ||||||||||||||||||||||
| Owner occupied | 1,783 | 3,478 | 3,778 | (49) | % | (53) | % | ||||||||||||||||||||||
| Non-owner occupied | 429 | 496 | 266 | (14) | % | 61 | % | ||||||||||||||||||||||
Total commercial real estate | 2,212 | 3,974 | 4,044 | (44) | % | (45) | % | ||||||||||||||||||||||
| Commercial and industrial | 3,677 | 3,439 | 3,275 | 7 | % | 12 | % | ||||||||||||||||||||||
| Agriculture | 947 | 1,367 | 162 | (31) | % | 485 | % | ||||||||||||||||||||||
| 1st lien | 3,321 | 2,174 | 2,963 | 53 | % | 12 | % | ||||||||||||||||||||||
| Junior lien | 385 | 190 | 78 | 103 | % | 394 | % | ||||||||||||||||||||||
| Total 1-4 family | 3,706 | 2,364 | 3,041 | 57 | % | 22 | % | ||||||||||||||||||||||
| Multifamily Residential | 201 | 492 | — | (59) | % | n/m | |||||||||||||||||||||||
| Home equity lines of credit | 2,804 | 1,182 | 1,315 | 137 | % | 113 | % | ||||||||||||||||||||||
| Other consumer | 1,598 | 1,824 | 1,097 | (12) | % | 46 | % | ||||||||||||||||||||||
| Total consumer | 4,402 | 3,006 | 2,412 | 46 | % | 83 | % | ||||||||||||||||||||||
| States and political subdivisions | — | 28 | 21 | (100) | % | (100) | % | ||||||||||||||||||||||
| Other | 1,346 | 1,727 | 1,881 | (22) | % | (28) | % | ||||||||||||||||||||||
| Total | $ | 24,993 | $ | 20,967 | $ | 16,080 | 19 | % | 55 | % | |||||||||||||||||||
______________________________
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) | Mar 31, 2023 | Dec 31, 2022 | Mar 31, 2022 | Mar 31, 2023 | Mar 31, 2023 | ||||||||||||||||||||||||
Custom and owner occupied construction | $ | — | 17 | — | — | — | |||||||||||||||||||||||
| Pre-sold and spec construction | (4) | (15) | (4) | — | 4 | ||||||||||||||||||||||||
| Total residential construction | (4) | 2 | (4) | — | 4 | ||||||||||||||||||||||||
| Land development | — | (34) | (21) | — | — | ||||||||||||||||||||||||
| Consumer land or lots | — | (46) | (10) | — | — | ||||||||||||||||||||||||
Total land, lot and other construction | — | (80) | (31) | — | — | ||||||||||||||||||||||||
| Owner occupied | (68) | 555 | (386) | — | 68 | ||||||||||||||||||||||||
| Non-owner occupied | 298 | (242) | (2) | 300 | 2 | ||||||||||||||||||||||||
| Total commercial real estate | 230 | 313 | (388) | 300 | 70 | ||||||||||||||||||||||||
| Commercial and industrial | (382) | (70) | (449) | 24 | 406 | ||||||||||||||||||||||||
| Agriculture | — | (7) | (2) | — | — | ||||||||||||||||||||||||
| 1st lien | 44 | (109) | (9) | 47 | 3 | ||||||||||||||||||||||||
| Junior lien | (5) | (302) | (78) | — | 5 | ||||||||||||||||||||||||
| Total 1-4 family | 39 | (411) | (87) | 47 | 8 | ||||||||||||||||||||||||
| Multifamily residential | — | 136 | — | — | — | ||||||||||||||||||||||||
| Home equity lines of credit | (39) | (91) | (5) | 4 | 43 | ||||||||||||||||||||||||
| Other consumer | 125 | 451 | 55 | 160 | 35 | ||||||||||||||||||||||||
| Total consumer | 86 | 360 | 50 | 164 | 78 | ||||||||||||||||||||||||
| Other | 1,970 | 7,572 | 1,761 | 2,758 | 788 | ||||||||||||||||||||||||
| Total | $ | 1,939 | 7,815 | 850 | 3,293 | 1,354 | |||||||||||||||||||||||
Visit our website at www.glacierbancorp.com
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