GBCI 8-K
Glacier Bancorp, Inc. (GBCI)
8-K
2023-10-19
For: 2023-10-19
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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): October 19, 2023
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(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 October 19, 2023, Glacier Bancorp, Inc. ("Company") issued a press release announcing its financial results for the quarter ended September 30, 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
99.1 Glacier Bancorp, Inc. Announces Results for the Quarter and Year Ended September 30, 2023
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: | October 19, 2023 | GLACIER BANCORP, INC. | |||||||||
| /s/ Randall M. Chesler | |||||||||||
| By: | Randall M. Chesler | ||||||||||
| President and Chief Executive Officer | |||||||||||
NEWS RELEASE
October 19, 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 AND PERIOD ENDED SEPTEMBER 30, 2023
3rd Quarter 2023 Highlights:
•Net income was $52.4 million for the current quarter, a decrease of $2.6 million, or 5 percent, from the prior quarter net income of $55.0 million. Net income for the current quarter decreased $26.9 million, or 34 percent, from the prior year third quarter net income of $79.3 million.
•Interest income of $265 million in the current quarter increased $17.5 million, or 7 percent, over the prior quarter interest income of $247 million. Interest income in the current quarter increased $50.5 million, or 24 percent, over the prior year third quarter.
•Total deposits and retail repurchase agreements of $21.895 billion at the current quarter end increased $530 million, or 10 percent annualized, during the current quarter.
•Non-interest bearing deposits remained stable in the current quarter with a $7.0 million increase over the prior quarter.
•The loan portfolio of $16.135 billion increased $180 million, or 5 percent annualized, during the current quarter.
•The loan yield for the current quarter of 5.27 percent, increased 15 basis points, compared to 5.12 percent in the prior quarter and increased 60 basis points from the prior year third quarter loan yield of 4.67 percent.
•Early stage delinquencies (accruing loans 30-89 days past due) of $15.3 million at September 30, 2023 decreased $9.6 million from the prior quarter.
•The Company declared a quarterly dividend of $0.33 per share. The Company has declared 154 consecutive quarterly dividends and has increased the dividend 49 times.
•The Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank, a leading eastern Washington community bank headquartered in Spokane with total assets of $763 million as of September 30, 2023. This will be the Company’s 25th acquisition since 2000.
Year-to-date 2023 Highlights
•Net Income for the first nine months of 2023 was $169 million, a decrease of $54.9 million, or 25 percent, from the $224 million for the prior year first nine months net income.
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•Interest income for the first nine months of 2023 was $744 million, an increase of $139 million, or 23 percent over the first nine months of the prior year interest income of $605 million.
•Total core deposits and retail repurchase agreements of $21.827 billion at the current quarter end increased $307 million, or 1 percent, during the first nine months of 2023.
•The loan portfolio of $16.135 billion increased $888 million, or 8 percent annualized, during the first nine months of the current year. The loan portfolio, excluding the Paycheck Protection Program (“PPP”) loans, increased $1.578 billion, or 16 percent annualized, during the first nine months of the prior year.
•The loan yield was 5.14 percent for the first nine months of the current year, an increase of 54 basis points from the first nine months of the prior year loan yield of 4.60 percent.
•Stockholders’ equity of $2.875 billion increased $31.3 million, or 1 percent, during the first nine months of the current year.
•Dividends declared in the first nine months of 2023 were $0.99 per share.
Financial Summary
| At or for the Three Months ended | At or for the Nine Months ended | ||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share and market data) | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||||||||||||
| Operating results | |||||||||||||||||||||||||||||||||||
| Net income | $ | 52,445 | 54,955 | 61,211 | 79,338 | 168,611 | 223,525 | ||||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.47 | 0.50 | 0.55 | 0.72 | 1.52 | 2.02 | ||||||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.47 | 0.50 | 0.55 | 0.72 | 1.52 | 2.02 | ||||||||||||||||||||||||||||
| Dividends declared per share | $ | 0.33 | 0.33 | 0.33 | 0.33 | 0.99 | 0.99 | ||||||||||||||||||||||||||||
| Market value per share | |||||||||||||||||||||||||||||||||||
| Closing | $ | 28.50 | 31.17 | 42.01 | 49.13 | 28.50 | 49.13 | ||||||||||||||||||||||||||||
| High | $ | 36.45 | 42.21 | 50.03 | 56.10 | 50.03 | 60.69 | ||||||||||||||||||||||||||||
| Low | $ | 26.84 | 26.77 | 37.07 | 46.08 | 26.77 | 44.43 | ||||||||||||||||||||||||||||
| Selected ratios and other data | |||||||||||||||||||||||||||||||||||
Number of common stock shares outstanding | 110,879,365 | 110,873,887 | 110,868,713 | 110,766,954 | 110,879,365 | 110,766,954 | |||||||||||||||||||||||||||||
| Average outstanding shares - basic | 110,877,534 | 110,870,964 | 110,824,648 | 110,766,502 | 110,857,788 | 110,752,231 | |||||||||||||||||||||||||||||
| Average outstanding shares - diluted | 110,886,959 | 110,875,535 | 110,881,708 | 110,833,594 | 110,882,718 | 110,811,267 | |||||||||||||||||||||||||||||
| Return on average assets (annualized) | 0.75 | % | 0.81 | % | 0.93 | % | 1.18 | % | 0.83 | % | 1.13 | % | |||||||||||||||||||||||
| Return on average equity (annualized) | 7.12 | % | 7.52 | % | 8.54 | % | 10.94 | % | 7.72 | % | 10.14 | % | |||||||||||||||||||||||
| Efficiency ratio | 63.31 | % | 62.73 | % | 60.39 | % | 52.76 | % | 62.10 | % | 55.14 | % | |||||||||||||||||||||||
| Dividend payout | 70.21 | % | 66.00 | % | 60.00 | % | 45.83 | % | 65.13 | % | 49.01 | % | |||||||||||||||||||||||
| Loan to deposit ratio | 79.25 | % | 79.92 | % | 77.09 | % | 67.98 | % | 79.25 | % | 67.98 | % | |||||||||||||||||||||||
Number of full time equivalent employees | 3,314 | 3,369 | 3,390 | 3,396 | 3,314 | 3,396 | |||||||||||||||||||||||||||||
| Number of locations | 221 | 222 | 222 | 222 | 221 | 222 | |||||||||||||||||||||||||||||
| Number of ATMs | 274 | 274 | 263 | 272 | 274 | 272 | |||||||||||||||||||||||||||||
KALISPELL, Mont., Oct 19, 2023 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $52.4 million for the current quarter, a decrease of $26.9 million, or 34 percent, from the $79.3 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.47 per share, a decrease of 35 percent from the prior year third quarter diluted earnings per share of $0.72. The decrease in net income compared to the prior quarter and prior year third quarter was primarily due to the
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continued increase in funding costs, which has outpaced the increase in interest income. “Our strong core deposit growth in the quarter shows the strength of our business model and employees. We were able to significantly grow deposits this quarter by leveraging existing banking relationships across all of our divisions,” said Randy Chesler, President and Chief Executive Officer. “We were also pleased to see the increase in interest income for the quarter, reflecting higher yields on loans and investments.”
Net income for the nine months ended September 30, 2023 was $169 million, a decrease of $54.9 million, or 25 percent, from the $224 million for the first nine months in the prior year, which was primarily driven by the increase in funding costs outpacing the increase in interest income. Diluted earnings per share for the first nine months of 2023 was $1.52 per share, a decrease of 25 percent from the prior year first nine months diluted earnings per share of $2.02.
On August 8 2023, the Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, “Wheatland”), headquartered in Spokane, Washington. Wheatland has 14 branches in eastern Washington with total assets of $763 million, total loans of $491 million and total deposits of $609 million as of September 30, 2023. The acquisition is subject to required regulatory and shareholder approvals and other customary conditions of closing and is expected to be completed in the fourth quarter of 2023.
Asset Summary
| $ Change from | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 1,672,094 | 1,051,320 | 401,995 | 425,212 | 620,774 | 1,270,099 | 1,246,882 | |||||||||||||||||||||||||||||||||
| Debt securities, available-for-sale | 4,741,738 | 4,999,820 | 5,307,307 | 5,755,076 | (258,082) | (565,569) | (1,013,338) | ||||||||||||||||||||||||||||||||||
| Debt securities, held-to-maturity | 3,553,805 | 3,608,289 | 3,715,052 | 3,756,634 | (54,484) | (161,247) | (202,829) | ||||||||||||||||||||||||||||||||||
| Total debt securities | 8,295,543 | 8,608,109 | 9,022,359 | 9,511,710 | (312,566) | (726,816) | (1,216,167) | ||||||||||||||||||||||||||||||||||
| Loans receivable | |||||||||||||||||||||||||||||||||||||||||
| Residential real estate | 1,653,777 | 1,588,175 | 1,446,008 | 1,368,368 | 65,602 | 207,769 | 285,409 | ||||||||||||||||||||||||||||||||||
| Commercial real estate | 10,292,446 | 10,220,751 | 9,797,047 | 9,582,989 | 71,695 | 495,399 | 709,457 | ||||||||||||||||||||||||||||||||||
| Other commercial | 2,916,785 | 2,888,810 | 2,799,668 | 2,729,717 | 27,975 | 117,117 | 187,068 | ||||||||||||||||||||||||||||||||||
| Home equity | 869,963 | 862,240 | 822,232 | 793,556 | 7,723 | 47,731 | 76,407 | ||||||||||||||||||||||||||||||||||
| Other consumer | 402,075 | 394,986 | 381,857 | 376,603 | 7,089 | 20,218 | 25,472 | ||||||||||||||||||||||||||||||||||
| Loans receivable | 16,135,046 | 15,954,962 | 15,246,812 | 14,851,233 | 180,084 | 888,234 | 1,283,813 | ||||||||||||||||||||||||||||||||||
Allowance for credit losses | (192,271) | (189,385) | (182,283) | (178,191) | (2,886) | (9,988) | (14,080) | ||||||||||||||||||||||||||||||||||
| Loans receivable, net | 15,942,775 | 15,765,577 | 15,064,529 | 14,673,042 | 177,198 | 878,246 | 1,269,733 | ||||||||||||||||||||||||||||||||||
| Other assets | 2,153,149 | 2,102,673 | 2,146,492 | 2,122,990 | 50,476 | 6,657 | 30,159 | ||||||||||||||||||||||||||||||||||
| Total assets | $ | 28,063,561 | 27,527,679 | 26,635,375 | 26,732,954 | 535,882 | 1,428,186 | 1,330,607 | |||||||||||||||||||||||||||||||||
Total debt securities of $8.296 billion at September 30, 2023 decreased $313 million, or 4 percent, during the current quarter and decreased $1.216 billion, or 13 percent, from the prior year third quarter. The Company continues to utilize cash flow from the securities portfolio to primarily fund loan growth and maintain a strong cash position. The Company increased its cash position by $621 million during the current quarter to further strengthen its liquidity position. Debt securities represented 30 percent of total assets at September 30, 2023, compared to 34 percent at December 31, 2022, and 36 percent at September 30, 2022.
The loan portfolio of $16.135 billion increased $180 million, or 5 percent annualized, during the current quarter with the largest dollar increase in commercial real estate, which increased $71.7 million, or 3 percent
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annualized. The loan portfolio increased $1.284 billion, or 9 percent, from the prior year third quarter with the largest dollar increase in commercial real estate loans, which increased $709 million, or 7 percent.
Credit Quality Summary
| At or for the Nine Months ended | At or for the Six Months ended | At or for the Year ended | At or for the Nine Months ended | ||||||||||||||||||||
| (Dollars in thousands) | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | |||||||||||||||||||
| Allowance for credit losses | |||||||||||||||||||||||
| Balance at beginning of period | $ | 182,283 | 182,283 | 172,665 | 172,665 | ||||||||||||||||||
| Provision for credit losses | 16,609 | 11,514 | 17,433 | 11,373 | |||||||||||||||||||
| Charge-offs | (10,284) | (7,083) | (14,970) | (10,905) | |||||||||||||||||||
| Recoveries | 3,663 | 2,671 | 7,155 | 5,058 | |||||||||||||||||||
| Balance at end of period | $ | 192,271 | 189,385 | 182,283 | 178,191 | ||||||||||||||||||
| Provision for credit losses | |||||||||||||||||||||||
| Loan portfolio | $ | 16,609 | 11,514 | 17,433 | 11,373 | ||||||||||||||||||
| Unfunded loan commitments | (4,827) | (3,271) | 2,530 | 2,466 | |||||||||||||||||||
| Total provision for credit losses | $ | 11,782 | 8,243 | 19,963 | 13,839 | ||||||||||||||||||
| Other real estate owned | $ | — | — | — | — | ||||||||||||||||||
| Other foreclosed assets | 48 | 52 | 32 | 42 | |||||||||||||||||||
| Accruing loans 90 days or more past due | 3,855 | 3,876 | 1,559 | 2,524 | |||||||||||||||||||
| Non-accrual loans | 38,380 | 28,094 | 31,151 | 32,493 | |||||||||||||||||||
| Total non-performing assets | $ | 42,283 | 32,022 | 32,742 | 35,059 | ||||||||||||||||||
Non-performing assets as a percentage of subsidiary assets | 0.15 | % | 0.12 | % | 0.12 | % | 0.13 | % | |||||||||||||||
Allowance for credit losses as a percentage of non-performing loans | 455 | % | 592 | % | 557 | % | 508 | % | |||||||||||||||
Allowance for credit losses as a percentage of total loans | 1.19 | % | 1.19 | % | 1.20 | % | 1.20 | % | |||||||||||||||
| Net charge-offs as a percentage of total loans | 0.04 | % | 0.03 | % | 0.05 | % | 0.04 | % | |||||||||||||||
| Accruing loans 30-89 days past due | $ | 15,253 | 24,863 | 20,967 | 10,922 | ||||||||||||||||||
| U.S. government guarantees included in non-performing assets | $ | 1,057 | 1,035 | 2,312 | 4,930 | ||||||||||||||||||
Non-performing assets of $42.3 million at September 30, 2023 increased $10.3 million, or 32 percent, over the quarter and increased $7.2 million, or 21 percent, over the prior year third quarter. Non-performing assets as a percentage of subsidiary assets at September 30, 2023 was 0.15 percent compared to 0.12 percent in the prior quarter and 0.13 percent in the prior year third quarter.
Early stage delinquencies (accruing loans 30-89 days past due) of $15.3 million at September 30, 2023 decreased $9.6 million from the prior quarter and decreased $5.7 million from prior year end. Early stage delinquencies as a percentage of loans at September 30, 2023 was 0.09 percent compared to 0.16 for the prior quarter end and 0.14 percent for the prior year end.
The current quarter credit loss expense of $3.5 million included $5.1 million of credit loss expense from loans and $1.6 million of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at September 30, 2023 was 1.19 percent compared to 1.20 percent in the prior year third quarter.
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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 | ||||||||||||||||||||||||
| Third quarter 2023 | $ | 5,095 | $ | 2,209 | 1.19 | % | 0.09 | % | 0.15 | % | |||||||||||||||||||
| Second quarter 2023 | 5,254 | 2,473 | 1.19 | % | 0.16 | % | 0.12 | % | |||||||||||||||||||||
| First quarter 2023 | 6,260 | 1,939 | 1.20 | % | 0.16 | % | 0.12 | % | |||||||||||||||||||||
| Fourth quarter 2022 | 6,060 | 1,968 | 1.20 | % | 0.14 | % | 0.12 | % | |||||||||||||||||||||
| Third quarter 2022 | 8,382 | 3,154 | 1.20 | % | 0.07 | % | 0.13 | % | |||||||||||||||||||||
| Second quarter 2022 | (1,353) | 1,843 | 1.20 | % | 0.12 | % | 0.16 | % | |||||||||||||||||||||
| First quarter 2022 | 4,344 | 850 | 1.28 | % | 0.12 | % | 0.24 | % | |||||||||||||||||||||
| Fourth quarter 2021 | 19,301 | 616 | 1.29 | % | 0.38 | % | 0.26 | % | |||||||||||||||||||||
Net charge-offs for the current quarter were $2.2 million compared to $2.5 million in the prior quarter and $3.2 million for the prior year third quarter. Net charge-offs of $2.2 million included $1.7 million in deposit overdraft net charge-offs and $544 thousand of net loan charge-offs.
The current quarter provision for credit loss expense for loans was $5.1 million, which was a decrease of $160 thousand from the prior quarter and a $3.3 million decrease from the prior year third 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.
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Liability Summary
| $ Change from | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||||||||||||||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | $ | 6,465,353 | 6,458,394 | 7,690,751 | 8,294,363 | 6,959 | (1,225,398) | (1,829,010) | |||||||||||||||||||||||||||||||||
| NOW and DDA accounts | 5,253,367 | 5,154,442 | 5,330,614 | 5,462,707 | 98,925 | (77,247) | (209,340) | ||||||||||||||||||||||||||||||||||
| Savings accounts | 2,872,362 | 2,808,571 | 3,200,321 | 3,305,333 | 63,791 | (327,959) | (432,971) | ||||||||||||||||||||||||||||||||||
Money market deposit accounts | 2,994,631 | 3,094,302 | 3,472,281 | 3,905,676 | (99,671) | (477,650) | (911,045) | ||||||||||||||||||||||||||||||||||
| Certificate accounts | 2,742,017 | 2,014,104 | 880,589 | 907,560 | 727,913 | 1,861,428 | 1,834,457 | ||||||||||||||||||||||||||||||||||
| Core deposits, total | 20,327,730 | 19,529,813 | 20,574,556 | 21,875,639 | 797,917 | (246,826) | (1,547,909) | ||||||||||||||||||||||||||||||||||
| Wholesale deposits | 67,434 | 478,417 | 31,999 | 4,003 | (410,983) | 35,435 | 63,431 | ||||||||||||||||||||||||||||||||||
| Deposits, total | 20,395,164 | 20,008,230 | 20,606,555 | 21,879,642 | 386,934 | (211,391) | (1,484,478) | ||||||||||||||||||||||||||||||||||
| Repurchase agreements | 1,499,696 | 1,356,862 | 945,916 | 887,483 | 142,834 | 553,780 | 612,213 | ||||||||||||||||||||||||||||||||||
| Deposits and repurchase agreements, total | 21,894,860 | 21,365,092 | 21,552,471 | 22,767,125 | 529,768 | 342,389 | (872,265) | ||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | — | — | 1,800,000 | 705,000 | — | (1,800,000) | (705,000) | ||||||||||||||||||||||||||||||||||
| FRB Bank Term Funding | 2,740,000 | 2,740,000 | — | — | — | 2,740,000 | 2,740,000 | ||||||||||||||||||||||||||||||||||
| Other borrowed funds | 73,752 | 75,819 | 77,293 | 77,671 | (2,067) | (3,541) | (3,919) | ||||||||||||||||||||||||||||||||||
| Subordinated debentures | 132,903 | 132,863 | 132,782 | 132,742 | 40 | 121 | 161 | ||||||||||||||||||||||||||||||||||
| Other liabilities | 347,452 | 287,379 | 229,524 | 278,059 | 60,073 | 117,928 | 69,393 | ||||||||||||||||||||||||||||||||||
| Total liabilities | $ | 25,188,967 | 24,601,153 | 23,792,070 | 23,960,597 | 587,814 | 1,396,897 | 1,228,370 | |||||||||||||||||||||||||||||||||
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 $21.895 billion at the current quarter end increased $530 million, or 10 percent annualized, during the current quarter. With the increased core deposits, the Company allowed $411 million of higher cost wholesale deposits to mature. Excluding wholesale deposits, core deposits and retail repurchase agreements increased $941 million, or 18 annualized percent, during the current quarter. Non-interest bearing deposits increased $7.0 million over the prior quarter, representing 32 percent of total core deposits at September 30, 2023 compared to 37 percent at December 31, 2022 and 38 percent at September 30, 2022.
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 $14.8 billion including cash, borrowing capacity from the FHLB and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.
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Stockholders’ Equity Summary
| $ Change from | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||||||||||||||||||||||||||||||||||
| Common equity | $ | 3,374,961 | 3,357,313 | 3,312,097 | 3,267,505 | 17,648 | 62,864 | 107,456 | |||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (500,367) | (430,787) | (468,792) | (495,148) | (69,580) | (31,575) | (5,219) | ||||||||||||||||||||||||||||||||||
Total stockholders’ equity | 2,874,594 | 2,926,526 | 2,843,305 | 2,772,357 | (51,932) | 31,289 | 102,237 | ||||||||||||||||||||||||||||||||||
Goodwill and core deposit intangible, net | (1,019,690) | (1,022,118) | (1,026,994) | (1,029,658) | 2,428 | 7,304 | 9,968 | ||||||||||||||||||||||||||||||||||
Tangible stockholders’ equity | $ | 1,854,904 | 1,904,408 | 1,816,311 | 1,742,699 | (49,504) | 38,593 | 112,205 | |||||||||||||||||||||||||||||||||
Stockholders’ equity to total assets | 10.24 | % | 10.63 | % | 10.67 | % | 10.37 | % | |||||||||||||||||||||||||||||||||
Tangible stockholders’ equity to total tangible assets | 6.86 | % | 7.18 | % | 7.09 | % | 6.78 | % | |||||||||||||||||||||||||||||||||
Book value per common share | $ | 25.93 | 26.40 | 25.67 | 25.03 | (0.47) | 0.26 | 0.90 | |||||||||||||||||||||||||||||||||
Tangible book value per common share | $ | 16.73 | 17.18 | 16.40 | 15.73 | (0.45) | 0.33 | 1.00 | |||||||||||||||||||||||||||||||||
Tangible stockholders’ equity of $1.855 billion at September 30, 2023 decreased $49.5 million, or 3 percent, compared to the prior quarter and was due to an increase in net unrealized losses (after-tax) on available-for-sale debt securities during the current quarter. Tangible stockholders’ equity increased $112 million, or 6 percent, from September 30, 2022, which was primarily due to earnings retention. Tangible book value per common share of $16.73 at the current quarter end increased $0.33 per share, or 2 percent, from the prior year end. The tangible book value per common share increased $1.00 per share from the prior year third quarter.
Cash Dividends
On September 27, 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 third quarter. The dividend was payable October 19, 2023 to shareholders of record on October 10, 2023. The dividend was the Company’s 154th 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 September 30, 2023
Compared to June 30, 2023, March 31, 2023 and September 30, 2022
Income Summary
| Three Months ended | $ Change from | ||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Sep 30, 2022 | Jun 30, 2023 | Mar 31, 2023 | Sep 30, 2022 | ||||||||||||||||||||||||||||||||||
| Net interest income | |||||||||||||||||||||||||||||||||||||||||
| Interest income | $ | 264,906 | 247,365 | 231,888 | 214,402 | 17,541 | 33,018 | 50,504 | |||||||||||||||||||||||||||||||||
| Interest expense | 97,852 | 75,385 | 45,696 | 9,075 | 22,467 | 52,156 | 88,777 | ||||||||||||||||||||||||||||||||||
| Total net interest income | 167,054 | 171,980 | 186,192 | 205,327 | (4,926) | (19,138) | (38,273) | ||||||||||||||||||||||||||||||||||
| Non-interest income | |||||||||||||||||||||||||||||||||||||||||
Service charges and other fees | 19,304 | 18,967 | 17,771 | 18,970 | 337 | 1,533 | 334 | ||||||||||||||||||||||||||||||||||
| Miscellaneous loan fees and charges | 4,322 | 4,162 | 3,967 | 4,040 | 160 | 355 | 282 | ||||||||||||||||||||||||||||||||||
| Gain on sale of loans | 4,046 | 3,528 | 2,400 | 3,846 | 518 | 1,646 | 200 | ||||||||||||||||||||||||||||||||||
| Loss on sale of debt securities | (65) | (23) | (114) | (85) | (42) | 49 | 20 | ||||||||||||||||||||||||||||||||||
| Other income | 2,633 | 2,445 | 3,871 | 3,635 | 188 | (1,238) | (1,002) | ||||||||||||||||||||||||||||||||||
| Total non-interest income | 30,240 | 29,079 | 27,895 | 30,406 | 1,161 | 2,345 | (166) | ||||||||||||||||||||||||||||||||||
| Total income | $ | 197,294 | 201,059 | 214,087 | 235,733 | (3,765) | (16,793) | (38,439) | |||||||||||||||||||||||||||||||||
Net interest margin (tax-equivalent) | 2.58 | % | 2.74 | % | 3.08 | % | 3.34 | % | |||||||||||||||||||||||||||||||||
Net Interest Income
The current quarter interest income of $265 million increased $17.5 million, or 7 percent, over the prior quarter and was driven primarily by the increase in the loan yields and an increase in interest-bearing cash. The current quarter interest income increased $50.5 million, or 24 percent, over the prior year third quarter and was principally due to loan growth and increased loan yields. The loan yield of 5.27 percent in the current quarter increased 15 basis points from the prior quarter loan yield of 5.12 percent and increased 60 basis points from the prior year third quarter loan yield of 4.67 percent.
The current quarter interest expense of $97.9 million increased $22.5 million, or 30 percent, over the prior quarter and increased $88.8 million, or 978 percent, over the prior year third quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 1.03 percent for the current quarter compared to 0.57 percent in the prior quarter and 0.06 percent for the prior year third quarter. The total cost of funding (including non-interest bearing deposits) was 1.58 percent in the current quarter compared to 1.26 percent in the prior quarter and 0.15 percent in the prior year third 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 2.58 percent compared to 2.74 percent in the prior quarter and 3.34 percent in the prior year third quarter. Although the net interest margin has been negatively impacted by the increase in interest rates in the current year, the Company experienced a slower pace in the decline in the net interest margin during the current quarter. The current quarter decrease in net interest margin was 16 basis points compared to a decrease of 34 basis points in the prior quarter and a decrease of 22 basis points in the first quarter of the current year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.55 percent compared to 2.72 percent in the prior quarter and 3.29 percent in the prior year third quarter.
8
Non-interest Income
Non-interest income for the current quarter totaled $30.2 million, which was an increase of $1.2 million, or 4 percent, over the prior quarter. Gain on the sale of residential loans of $4.0 million for the current quarter increased $518 thousand, or 15 percent, compared to the prior quarter and increased $200 thousand, or 5 percent, from the prior year third quarter. Service charges and other fees of $19.3 million in the current quarter increased $337 thousand, or 2 percent, over the prior quarter and increased $334 thousand, or 2 percent, over the prior year third quarter.
Non-interest Expense Summary
| Three Months ended | $ Change from | ||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Sep 30, 2022 | Jun 30, 2023 | Mar 31, 2023 | Sep 30, 2022 | ||||||||||||||||||||||||||||||||||
| Compensation and employee benefits | $ | 77,387 | 78,764 | 81,477 | 80,612 | (1,377) | (4,090) | (3,225) | |||||||||||||||||||||||||||||||||
| Occupancy and equipment | 10,553 | 10,827 | 11,665 | 10,797 | (274) | (1,112) | (244) | ||||||||||||||||||||||||||||||||||
| Advertising and promotions | 4,052 | 3,733 | 4,235 | 3,768 | 319 | (183) | 284 | ||||||||||||||||||||||||||||||||||
| Data processing | 8,730 | 8,402 | 8,109 | 7,716 | 328 | 621 | 1,014 | ||||||||||||||||||||||||||||||||||
| Other real estate owned and foreclosed assets | 15 | 14 | 12 | 66 | 1 | 3 | (51) | ||||||||||||||||||||||||||||||||||
| Regulatory assessments and insurance | 6,060 | 5,314 | 4,903 | 3,339 | 746 | 1,157 | 2,721 | ||||||||||||||||||||||||||||||||||
| Core deposit intangibles amortization | 2,428 | 2,427 | 2,449 | 2,665 | 1 | (21) | (237) | ||||||||||||||||||||||||||||||||||
| Other expenses | 20,351 | 21,123 | 22,132 | 21,097 | (772) | (1,781) | (746) | ||||||||||||||||||||||||||||||||||
| Total non-interest expense | $ | 129,576 | 130,604 | 134,982 | 130,060 | (1,028) | (5,406) | (484) | |||||||||||||||||||||||||||||||||
Total non-interest expense of $130 million for the current quarter decreased $1.0 million, or 79 basis points, over the prior quarter and decreased $484 thousand, or 37 basis points, over the prior year third quarter. Compensation and employee benefits expense of $77.4 million for the current quarter decreased $1.4 million, or 2 percent, from the prior quarter and decreased $3.2 million, or 4 percent, over the prior year third quarter, which was driven primarily by decreases in accrued expenses for employee benefits. Regulatory assessments and insurance of $6.1 million, increased $2.7 million, or 81 percent, over the prior year third quarter and was primarily due to the Federal Deposit Insurance Corporation (“FDIC”) uniformly increasing all depository institutions premiums at the beginning of the current year. “The reduction in non-interest expense reflects the Company’s continued focus on staffing levels and containing costs in other areas,” said Ron Copher, Chief Financial Officer.
Federal and State Income Tax Expense
Tax expense during the third quarter of 2023 was $11.7 million, a decrease of $993 thousand, or 8 percent, compared to the prior quarter and a decrease of $6.3 million, or 35 percent, from the prior year third quarter. The effective tax rate in the current quarter was 18.3 percent compared to 18.8 percent in the prior quarter and 18.5 percent in the prior year third quarter.
Efficiency Ratio
The efficiency ratio was 63.31 percent in the current quarter compared to 62.73 percent in the prior quarter and 52.76 percent in the prior year third quarter. The increase from prior quarter and prior year third quarter was primarily attributable to the increase in interest expense in the current quarter that outpaced the increase in interest income.
9
Operating Results for Nine Months Ended September 30, 2023
Compared to September 30, 2022
Income Summary
| Nine Months ended | |||||||||||||||||||||||
| (Dollars in thousands) | Sep 30, 2023 | Sep 30, 2022 | $ Change | % Change | |||||||||||||||||||
| Net interest income | |||||||||||||||||||||||
| Interest income | $ | 744,159 | $ | 604,555 | $ | 139,604 | 23 | % | |||||||||||||||
| Interest expense | 218,933 | 20,235 | 198,698 | 982 | % | ||||||||||||||||||
| Total net interest income | 525,226 | 584,320 | (59,094) | (10) | % | ||||||||||||||||||
| Non-interest income | |||||||||||||||||||||||
| Service charges and other fees | 56,042 | 53,390 | 2,652 | 5 | % | ||||||||||||||||||
| Miscellaneous loan fees and charges | 12,451 | 11,445 | 1,006 | 9 | % | ||||||||||||||||||
| Gain on sale of loans | 9,974 | 17,857 | (7,883) | (44) | % | ||||||||||||||||||
| (Loss) gain on sale of debt securities | (202) | 101 | (303) | (300) | % | ||||||||||||||||||
| Other income | 8,949 | 9,456 | (507) | (5) | % | ||||||||||||||||||
| Total non-interest income | 87,214 | 92,249 | (5,035) | (5) | % | ||||||||||||||||||
| Total Income | $ | 612,440 | $ | 676,569 | $ | (64,129) | (9) | % | |||||||||||||||
| Net interest margin (tax-equivalent) | 2.79 | % | 3.26 | % | |||||||||||||||||||
Net Interest Income
Net-interest income of $525 million for the first nine months of 2023 decreased $59.1 million, or 10 percent, over the same period of 2022 and was primarily driven by increased interest expense. Interest income of $744 million for the first nine months in the current year increased $139.6 million, or 23 percent, from the same period in the prior year and was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The loan yield was 5.14 percent for the first nine months of the current year, an increase of 54 basis points from the first nine months of the prior year loan yield of 4.60 percent.
Interest expense of $218.9 million for the first nine months of 2023 increased $199 million, or 982 percent, over the same period in the prior year and was the result of increased borrowings and higher interest rates on borrowings and deposits. Core deposit cost (including non-interest bearing deposits) was 0.62 percent for the nine months of 2023 compared to 0.06 percent for the same period in 2022. The total funding cost (including non-interest bearing deposits) for the first nine months of the current year was 1.22 percent, which was an increase of 110 basis points over the prior year first nine months of 0.12 percent.
The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first nine months of 2023 was 2.79 percent, a 47 basis points decrease from the net interest margin of 3.26 percent for the same period in the prior year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.77 percent for the first nine months of the current year, which was a 41 basis points decrease from the core margin of 3.18 percent in the same period of the prior year.
10
Non-interest Income
Non-interest income of $87.2 million for the first nine months of 2023 decreased $5.0 million, or 5 percent, over the same period last year and was primarily due to the decrease in gain on sale of residential loans, which was partially offset by the increase in service charges and other fees. Gain on sale of residential loans of $10.0 million in the current year decreased by $7.9 million, or 44 percent, over the prior year as result of the reduction in residential purchase and refinance activity as mortgage rates significantly increased during the current year. Miscellaneous loan fees of $12.5 million, increased $1.0 million, or 9 percent, which was primarily driven by increased credit card interchange fees due to increased activity.
Non-interest Expense Summary
| Nine Months ended | |||||||||||||||||||||||
| (Dollars in thousands) | Sep 30, 2023 | Sep 30, 2022 | $ Change | % Change | |||||||||||||||||||
| Compensation and employee benefits | $ | 237,628 | $ | 239,489 | $ | (1,861) | (1) | % | |||||||||||||||
| Occupancy and equipment | 33,045 | 32,527 | 518 | 2 | % | ||||||||||||||||||
| Advertising and promotions | 12,020 | 10,766 | 1,254 | 12 | % | ||||||||||||||||||
| Data processing | 25,241 | 22,744 | 2,497 | 11 | % | ||||||||||||||||||
| Other real estate owned and foreclosed assets | 41 | 72 | (31) | (43) | % | ||||||||||||||||||
| Regulatory assessments and insurance | 16,277 | 9,479 | 6,798 | 72 | % | ||||||||||||||||||
| Core deposit intangibles amortization | 7,304 | 7,994 | (690) | (9) | % | ||||||||||||||||||
| Other expenses | 63,606 | 66,818 | (3,212) | (5) | % | ||||||||||||||||||
| Total non-interest expense | $ | 395,162 | $ | 389,889 | $ | 5,273 | 1 | % | |||||||||||||||
Total non-interest expense of $395 million for the first nine months of 2023 increased $5.3 million, or 1 percent, over the same period in the prior year. Regulatory assessments and insurance of $16.3 million for the first nine months of 2023 increased $6.8 million, or 72 percent, over the prior year and was primarily due to the FDIC uniformly increasing all depository institutions premiums beginning in 2023. Other expense of $63.6 million for the first nine months of 2023 decreased $3.2 million, or 5 percent, from the first nine months of the prior year and was primarily due to the decrease in acquisition-related expenses along with changes in several miscellaneous categories. Acquisition-related expenses were $842 thousand in the first nine months of the current year compared to $9.2 million in the same period of last year.
Provision for Credit Losses
The provision for credit loss expense was $11.8 million for the first nine months of 2023 and decreased $2.1 million, or 15 percent, over the same period of the prior year. The provision for credit loss expense for the first nine months of 2023 included provision for credit loss expense of $16.6 million on the loan portfolio and credit loss benefit of $4.8 million on the unfunded loan commitments. Net charge-offs during the first nine months of the current year were $6.6 million compared to $5.8 million during the same period of the prior year.
Federal and State Income Tax Expense
Tax expense of $36.9 million for the first nine months of 2023 decreased $12.4 million, or 25 percent, over the first nine months of the prior year. The effective tax rate for first nine months of 2023 was 17.9 percent compared to 18.1 percent for the first nine months of 2022.
Efficiency Ratio
The efficiency ratio was 62.10 percent for the first nine months of 2023 compared to 55.14 percent for the same period last year. The increase from the prior year was primarily attributable to the increase in interest expense in the current year that outpaced the increase in interest income.
11
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 based on assumptions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those made in this news release:
•risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
•changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
•legislative or regulatory changes, including increased 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 wars in Ukraine and the Middle East;
•risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;
•costs or difficulties related to the completion and integration of 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.
12
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 Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, October 20, 2023. Please note that our conference call host no longer offers a general dial-in number. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BIbe718214dea94214b3ab02d160926dd0. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/w8zz3hr8. 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).
13
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
| (Dollars in thousands, except per share data) | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | |||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash on hand and in banks | $ | 264,067 | 285,920 | 300,194 | 260,456 | ||||||||||||||||||
| Interest bearing cash deposits | 1,408,027 | 765,400 | 101,801 | 164,756 | |||||||||||||||||||
| Cash and cash equivalents | 1,672,094 | 1,051,320 | 401,995 | 425,212 | |||||||||||||||||||
| Debt securities, available-for-sale | 4,741,738 | 4,999,820 | 5,307,307 | 5,755,076 | |||||||||||||||||||
| Debt securities, held-to-maturity | 3,553,805 | 3,608,289 | 3,715,052 | 3,756,634 | |||||||||||||||||||
| Total debt securities | 8,295,543 | 8,608,109 | 9,022,359 | 9,511,710 | |||||||||||||||||||
| Loans held for sale, at fair value | 29,027 | 35,006 | 12,314 | 21,720 | |||||||||||||||||||
| Loans receivable | 16,135,046 | 15,954,962 | 15,246,812 | 14,851,233 | |||||||||||||||||||
| Allowance for credit losses | (192,271) | (189,385) | (182,283) | (178,191) | |||||||||||||||||||
| Loans receivable, net | 15,942,775 | 15,765,577 | 15,064,529 | 14,673,042 | |||||||||||||||||||
| Premises and equipment, net | 415,343 | 405,407 | 398,100 | 395,639 | |||||||||||||||||||
| Other real estate owned and foreclosed assets | 48 | 52 | 32 | 42 | |||||||||||||||||||
| Accrued interest receivable | 104,476 | 88,351 | 83,538 | 93,300 | |||||||||||||||||||
| Deferred tax asset | 203,745 | 179,815 | 193,187 | 204,351 | |||||||||||||||||||
| Core deposit intangible, net | 34,297 | 36,725 | 41,601 | 44,265 | |||||||||||||||||||
| Goodwill | 985,393 | 985,393 | 985,393 | 985,393 | |||||||||||||||||||
| Non-marketable equity securities | 11,330 | 10,014 | 82,015 | 38,215 | |||||||||||||||||||
| Bank-owned life insurance | 170,175 | 169,195 | 169,068 | 168,187 | |||||||||||||||||||
| Other assets | 199,315 | 192,715 | 181,244 | 171,878 | |||||||||||||||||||
| Total assets | $ | 28,063,561 | 27,527,679 | 26,635,375 | 26,732,954 | ||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Non-interest bearing deposits | $ | 6,465,353 | 6,458,394 | 7,690,751 | 8,294,363 | ||||||||||||||||||
| Interest bearing deposits | 13,929,811 | 13,549,836 | 12,915,804 | 13,585,279 | |||||||||||||||||||
| Securities sold under agreements to repurchase | 1,499,696 | 1,356,862 | 945,916 | 887,483 | |||||||||||||||||||
| FHLB advances | — | — | 1,800,000 | 705,000 | |||||||||||||||||||
| FRB Bank Term Funding | 2,740,000 | 2,740,000 | — | — | |||||||||||||||||||
| Other borrowed funds | 73,752 | 75,819 | 77,293 | 77,671 | |||||||||||||||||||
| Subordinated debentures | 132,903 | 132,863 | 132,782 | 132,742 | |||||||||||||||||||
| Accrued interest payable | 91,874 | 47,742 | 4,331 | 2,740 | |||||||||||||||||||
| Other liabilities | 255,578 | 239,637 | 225,193 | 275,319 | |||||||||||||||||||
| Total liabilities | 25,188,967 | 24,601,153 | 23,792,070 | 23,960,597 | |||||||||||||||||||
| Commitments and Contingent Liabilities | |||||||||||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||||||
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding | — | — | — | — | |||||||||||||||||||
Common stock, $0.01 par value per share, 234,000,000 shares authorized | 1,109 | 1,109 | 1,108 | 1,108 | |||||||||||||||||||
| Paid-in capital | 2,348,305 | 2,346,422 | 2,344,005 | 2,342,452 | |||||||||||||||||||
| Retained earnings - substantially restricted | 1,025,547 | 1,009,782 | 966,984 | 923,945 | |||||||||||||||||||
| Accumulated other comprehensive loss | (500,367) | (430,787) | (468,792) | (495,148) | |||||||||||||||||||
| Total stockholders’ equity | 2,874,594 | 2,926,526 | 2,843,305 | 2,772,357 | |||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 28,063,561 | 27,527,679 | 26,635,375 | 26,732,954 | ||||||||||||||||||
14
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
| Three Months ended | Nine Months ended | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||||||||||||
| Interest Income | |||||||||||||||||||||||||||||||||||
| Investment securities | $ | 53,397 | 47,658 | 43,642 | 43,722 | 144,697 | 125,217 | ||||||||||||||||||||||||||||
| Residential real estate loans | 18,594 | 17,076 | 15,838 | 13,738 | 51,508 | 42,279 | |||||||||||||||||||||||||||||
| Commercial loans | 173,437 | 164,587 | 155,682 | 142,692 | 493,706 | 398,507 | |||||||||||||||||||||||||||||
| Consumer and other loans | 19,478 | 18,044 | 16,726 | 14,250 | 54,248 | 38,552 | |||||||||||||||||||||||||||||
| Total interest income | 264,906 | 247,365 | 231,888 | 214,402 | 744,159 | 604,555 | |||||||||||||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||||||||||||||
| Deposits | 54,697 | 31,700 | 12,545 | 3,279 | 98,942 | 9,884 | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 10,972 | 8,607 | 4,606 | 675 | 24,185 | 1,435 | |||||||||||||||||||||||||||||
| Federal Home Loan Bank advances | — | 3,305 | 23,605 | 3,318 | 26,910 | 4,628 | |||||||||||||||||||||||||||||
| FRB Bank Term Funding | 30,229 | 29,899 | 3,032 | — | 63,160 | — | |||||||||||||||||||||||||||||
Other borrowed funds | 489 | 443 | 496 | 214 | 1,428 | 698 | |||||||||||||||||||||||||||||
| Subordinated debentures | 1,465 | 1,431 | 1,412 | 1,589 | 4,308 | 3,590 | |||||||||||||||||||||||||||||
| Total interest expense | 97,852 | 75,385 | 45,696 | 9,075 | 218,933 | 20,235 | |||||||||||||||||||||||||||||
| Net Interest Income | 167,054 | 171,980 | 186,192 | 205,327 | 525,226 | 584,320 | |||||||||||||||||||||||||||||
| Provision for credit losses | 3,539 | 2,773 | 5,470 | 8,341 | 11,782 | 13,839 | |||||||||||||||||||||||||||||
Net interest income after provision for credit losses | 163,515 | 169,207 | 180,722 | 196,986 | 513,444 | 570,481 | |||||||||||||||||||||||||||||
| Non-Interest Income | |||||||||||||||||||||||||||||||||||
| Service charges and other fees | 19,304 | 18,967 | 17,771 | 18,970 | 56,042 | 53,390 | |||||||||||||||||||||||||||||
| Miscellaneous loan fees and charges | 4,322 | 4,162 | 3,967 | 4,040 | 12,451 | 11,445 | |||||||||||||||||||||||||||||
| Gain on sale of loans | 4,046 | 3,528 | 2,400 | 3,846 | 9,974 | 17,857 | |||||||||||||||||||||||||||||
| (Loss) gain on sale of debt securities | (65) | (23) | (114) | (85) | (202) | 101 | |||||||||||||||||||||||||||||
| Other income | 2,633 | 2,445 | 3,871 | 3,635 | 8,949 | 9,456 | |||||||||||||||||||||||||||||
| Total non-interest income | 30,240 | 29,079 | 27,895 | 30,406 | 87,214 | 92,249 | |||||||||||||||||||||||||||||
| Non-Interest Expense | |||||||||||||||||||||||||||||||||||
| Compensation and employee benefits | 77,387 | 78,764 | 81,477 | 80,612 | 237,628 | 239,489 | |||||||||||||||||||||||||||||
| Occupancy and equipment | 10,553 | 10,827 | 11,665 | 10,797 | 33,045 | 32,527 | |||||||||||||||||||||||||||||
| Advertising and promotions | 4,052 | 3,733 | 4,235 | 3,768 | 12,020 | 10,766 | |||||||||||||||||||||||||||||
| Data processing | 8,730 | 8,402 | 8,109 | 7,716 | 25,241 | 22,744 | |||||||||||||||||||||||||||||
| Other real estate owned and foreclosed assets | 15 | 14 | 12 | 66 | 41 | 72 | |||||||||||||||||||||||||||||
Regulatory assessments and insurance | 6,060 | 5,314 | 4,903 | 3,339 | 16,277 | 9,479 | |||||||||||||||||||||||||||||
| Core deposit intangibles amortization | 2,428 | 2,427 | 2,449 | 2,665 | 7,304 | 7,994 | |||||||||||||||||||||||||||||
| Other expenses | 20,351 | 21,123 | 22,132 | 21,097 | 63,606 | 66,818 | |||||||||||||||||||||||||||||
| Total non-interest expense | 129,576 | 130,604 | 134,982 | 130,060 | 395,162 | 389,889 | |||||||||||||||||||||||||||||
| Income Before Income Taxes | 64,179 | 67,682 | 73,635 | 97,332 | 205,496 | 272,841 | |||||||||||||||||||||||||||||
| Federal and state income tax expense | 11,734 | 12,727 | 12,424 | 17,994 | 36,885 | 49,316 | |||||||||||||||||||||||||||||
| Net Income | $ | 52,445 | 54,955 | 61,211 | 79,338 | 168,611 | 223,525 | ||||||||||||||||||||||||||||
15
Glacier Bancorp, Inc.
Average Balance Sheets
| Three Months ended | |||||||||||||||||||||||||||||||||||
| September 30, 2023 | June 30, 2023 | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest & Dividends | Average Yield/ Rate | Average Balance | Interest & Dividends | Average Yield/ Rate | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Residential real estate loans | $ | 1,649,947 | $ | 18,594 | 4.51 | % | $ | 1,567,136 | $ | 17,076 | 4.36 | % | |||||||||||||||||||||||
Commercial loans 1 | 13,120,479 | 174,822 | 5.29 | % | 12,950,934 | 165,874 | 5.14 | % | |||||||||||||||||||||||||||
| Consumer and other loans | 1,263,775 | 19,478 | 6.11 | % | 1,236,763 | 18,044 | 5.85 | % | |||||||||||||||||||||||||||
Total loans 2 | 16,034,201 | 212,894 | 5.27 | % | 15,754,833 | 200,994 | 5.12 | % | |||||||||||||||||||||||||||
Tax-exempt debt securities 3 | 1,732,227 | 14,486 | 3.34 | % | 1,743,852 | 14,462 | 3.32 | % | |||||||||||||||||||||||||||
Taxable debt securities 4 | 8,485,157 | 41,052 | 1.94 | % | 8,177,551 | 35,202 | 1.72 | % | |||||||||||||||||||||||||||
| Total earning assets | 26,251,585 | 268,432 | 4.06 | % | 25,676,236 | 250,658 | 3.92 | % | |||||||||||||||||||||||||||
| Goodwill and intangibles | 1,020,868 | 1,023,291 | |||||||||||||||||||||||||||||||||
| Non-earning assets | 528,145 | 523,349 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 27,800,598 | $ | 27,222,876 | |||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | $ | 6,461,350 | $ | — | — | % | $ | 6,584,082 | $ | — | — | % | |||||||||||||||||||||||
| NOW and DDA accounts | 5,231,741 | 12,906 | 0.98 | % | 5,108,421 | 7,429 | 0.58 | % | |||||||||||||||||||||||||||
| Savings accounts | 2,840,620 | 3,492 | 0.49 | % | 2,846,015 | 1,064 | 0.15 | % | |||||||||||||||||||||||||||
| Money market deposit accounts | 3,039,177 | 12,646 | 1.65 | % | 3,256,007 | 10,174 | 1.25 | % | |||||||||||||||||||||||||||
| Certificate accounts | 2,462,266 | 23,151 | 3.73 | % | 1,451,218 | 8,878 | 2.45 | % | |||||||||||||||||||||||||||
| Total core deposits | 20,035,154 | 52,195 | 1.03 | % | 19,245,743 | 27,545 | 0.57 | % | |||||||||||||||||||||||||||
Wholesale deposits 5 | 188,523 | 2,502 | 5.27 | % | 330,655 | 4,155 | 5.04 | % | |||||||||||||||||||||||||||
| Repurchase agreements | 1,401,765 | 10,972 | 3.11 | % | 1,273,045 | 8,607 | 2.71 | % | |||||||||||||||||||||||||||
| FHLB advances | — | — | — | % | 245,055 | 3,305 | 5.33 | % | |||||||||||||||||||||||||||
| FRB Bank Term Funding | 2,740,000 | 30,229 | 4.38 | % | 2,740,000 | 29,899 | 4.38 | % | |||||||||||||||||||||||||||
| Subordinated debentures and other borrowed funds | 208,336 | 1,954 | 3.72 | % | 208,804 | 1,874 | 3.60 | % | |||||||||||||||||||||||||||
| Total funding liabilities | 24,573,778 | 97,852 | 1.58 | % | 24,043,302 | 75,385 | 1.26 | % | |||||||||||||||||||||||||||
| Other liabilities | 302,564 | 247,319 | |||||||||||||||||||||||||||||||||
| Total liabilities | 24,876,342 | 24,290,621 | |||||||||||||||||||||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
| Common stock | 1,109 | 1,108 | |||||||||||||||||||||||||||||||||
| Paid-in capital | 2,347,323 | 2,345,438 | |||||||||||||||||||||||||||||||||
| Retained earnings | 1,035,276 | 1,017,456 | |||||||||||||||||||||||||||||||||
| Accumulated other comprehensive loss | (459,452) | (431,747) | |||||||||||||||||||||||||||||||||
| Total stockholders’ equity | 2,924,256 | 2,932,255 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 27,800,598 | $ | 27,222,876 | |||||||||||||||||||||||||||||||
| Net interest income (tax-equivalent) | $ | 170,580 | $ | 175,273 | |||||||||||||||||||||||||||||||
| Net interest spread (tax-equivalent) | 2.48 | % | 2.66 | % | |||||||||||||||||||||||||||||||
| Net interest margin (tax-equivalent) | 2.58 | % | 2.74 | % | |||||||||||||||||||||||||||||||
______________________________
1 Includes tax effect of $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2023 and June 30, 2023, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $1.9 million and $1.8 million on tax-exempt debt securities income for the three months ended September 30, 2023 and June 30, 2023, respectively.
4 Includes tax effect of $215 thousand and $214 thousand on federal income tax credits for the three months ended September 30, 2023 and June 30, 2023, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
16
Glacier Bancorp, Inc.
Average Balance Sheets (continued)
| Three Months ended | |||||||||||||||||||||||||||||||||||
| September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest & Dividends | Average Yield/ Rate | Average Balance | Interest & Dividends | Average Yield/ Rate | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Residential real estate loans | $ | 1,649,947 | $ | 18,594 | 4.51 | % | $ | 1,338,606 | $ | 13,738 | 4.11 | % | |||||||||||||||||||||||
Commercial loans 1 | 13,120,479 | 174,822 | 5.29 | % | 12,146,551 | 144,357 | 4.72 | % | |||||||||||||||||||||||||||
| Consumer and other loans | 1,263,775 | 19,478 | 6.11 | % | 1,156,305 | 14,250 | 4.89 | % | |||||||||||||||||||||||||||
Total loans 2 | 16,034,201 | 212,894 | 5.27 | % | 14,641,462 | 172,345 | 4.67 | % | |||||||||||||||||||||||||||
Tax-exempt debt securities 3 | 1,732,227 | 14,486 | 3.34 | % | 2,000,404 | 18,484 | 3.70 | % | |||||||||||||||||||||||||||
Taxable debt securities 4 | 8,485,157 | 41,052 | 1.94 | % | 8,426,933 | 29,297 | 1.39 | % | |||||||||||||||||||||||||||
| Total earning assets | 26,251,585 | 268,432 | 4.06 | % | 25,068,799 | 220,126 | 3.48 | % | |||||||||||||||||||||||||||
| Goodwill and intangibles | 1,020,868 | 1,030,961 | |||||||||||||||||||||||||||||||||
| Non-earning assets | 528,145 | 604,754 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 27,800,598 | $ | 26,704,514 | |||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | $ | 6,461,350 | $ | — | — | % | $ | 8,158,207 | $ | — | — | % | |||||||||||||||||||||||
| NOW and DDA accounts | 5,231,741 | 12,906 | 0.98 | % | 5,473,458 | 794 | 0.06 | % | |||||||||||||||||||||||||||
| Savings accounts | 2,840,620 | 3,492 | 0.49 | % | 3,319,167 | 260 | 0.03 | % | |||||||||||||||||||||||||||
| Money market deposit accounts | 3,039,177 | 12,646 | 1.65 | % | 3,999,758 | 1,483 | 0.15 | % | |||||||||||||||||||||||||||
| Certificate accounts | 2,462,266 | 23,151 | 3.73 | % | 940,507 | 722 | 0.30 | % | |||||||||||||||||||||||||||
| Total core deposits | 20,035,154 | 52,195 | 1.03 | % | 21,891,097 | 3,259 | 0.06 | % | |||||||||||||||||||||||||||
Wholesale deposits 5 | 188,523 | 2,502 | 5.27 | % | 3,946 | 20 | 2.05 | % | |||||||||||||||||||||||||||
| Repurchase agreements | 1,401,765 | 10,972 | 3.11 | % | 917,104 | 675 | 0.29 | % | |||||||||||||||||||||||||||
| FHLB advances | — | — | — | % | 541,630 | 3,318 | 2.40 | % | |||||||||||||||||||||||||||
| FRB Bank Term Funding | 2,740,000 | 30,229 | 4.38 | % | — | — | — | % | |||||||||||||||||||||||||||
| Subordinated debentures and other borrowed funds | 208,336 | 1,954 | 3.72 | % | 202,383 | 1,803 | 3.54 | % | |||||||||||||||||||||||||||
| Total funding liabilities | 24,573,778 | 97,852 | 1.58 | % | 23,556,160 | 9,075 | 0.15 | % | |||||||||||||||||||||||||||
| Other liabilities | 302,564 | 261,735 | |||||||||||||||||||||||||||||||||
| Total liabilities | 24,876,342 | 23,817,895 | |||||||||||||||||||||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
| Common stock | 1,109 | 1,108 | |||||||||||||||||||||||||||||||||
| Paid-in capital | 2,347,323 | 2,341,648 | |||||||||||||||||||||||||||||||||
| Retained earnings | 1,035,276 | 920,372 | |||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (459,452) | (376,509) | |||||||||||||||||||||||||||||||||
| Total stockholders’ equity | 2,924,256 | 2,886,619 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 27,800,598 | $ | 26,704,514 | |||||||||||||||||||||||||||||||
| Net interest income (tax-equivalent) | $ | 170,580 | $ | 211,051 | |||||||||||||||||||||||||||||||
| Net interest spread (tax-equivalent) | 2.48 | % | 3.33 | % | |||||||||||||||||||||||||||||||
| Net interest margin (tax-equivalent) | 2.58 | % | 3.34 | % | |||||||||||||||||||||||||||||||
1 Includes tax effect of $1.4 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended September 30, 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 $1.9 million and $3.8 million on tax-exempt debt securities income for the three months ended September 30, 2023 and 2022, respectively.
4 Includes tax effect of $215 thousand and $225 thousand on federal income tax credits for the three months ended September 30, 2023 and 2022, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
17
Glacier Bancorp, Inc.
Average Balance Sheets (continued)
| Nine Months ended | |||||||||||||||||||||||||||||||||||
| September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest & Dividends | Average Yield/ Rate | Average Balance | Interest & Dividends | Average Yield/ Rate | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Residential real estate loans | $ | 1,570,911 | $ | 51,508 | 4.37 | % | $ | 1,236,674 | $ | 42,279 | 4.56 | % | |||||||||||||||||||||||
Commercial loans 1 | 12,910,691 | 498,152 | 5.16 | % | 11,728,932 | 403,075 | 4.59 | % | |||||||||||||||||||||||||||
| Consumer and other loans | 1,236,158 | 54,248 | 5.87 | % | 1,113,232 | 38,552 | 4.63 | % | |||||||||||||||||||||||||||
Total loans 2 | 15,717,760 | 603,908 | 5.14 | % | 14,078,838 | 483,906 | 4.60 | % | |||||||||||||||||||||||||||
Tax-exempt debt securities 3 | 1,745,764 | 44,978 | 3.44 | % | 1,902,147 | 52,561 | 3.68 | % | |||||||||||||||||||||||||||
Taxable debt securities 4 | 8,240,041 | 107,338 | 1.74 | % | 8,663,590 | 84,235 | 1.30 | % | |||||||||||||||||||||||||||
| Total earning assets | 25,703,565 | 756,224 | 3.93 | % | 24,644,575 | 620,702 | 3.37 | % | |||||||||||||||||||||||||||
| Goodwill and intangibles | 1,023,274 | 1,033,606 | |||||||||||||||||||||||||||||||||
| Non-earning assets | 510,332 | 659,727 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 27,237,171 | $ | 26,337,908 | |||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | $ | 6,770,242 | $ | — | — | % | $ | 8,004,395 | $ | — | — | % | |||||||||||||||||||||||
| NOW and DDA accounts | 5,140,668 | 22,606 | 0.59 | % | 5,387,013 | 2,362 | 0.06 | % | |||||||||||||||||||||||||||
| Savings accounts | 2,930,420 | 5,070 | 0.23 | % | 3,276,092 | 836 | 0.03 | % | |||||||||||||||||||||||||||
| Money market deposit accounts | 3,253,138 | 28,654 | 1.18 | % | 4,009,931 | 4,233 | 0.14 | % | |||||||||||||||||||||||||||
| Certificate accounts | 1,638,163 | 34,613 | 2.82 | % | 980,543 | 2,416 | 0.33 | % | |||||||||||||||||||||||||||
| Total core deposits | 19,732,631 | 90,943 | 0.62 | % | 21,657,974 | 9,847 | 0.06 | % | |||||||||||||||||||||||||||
Wholesale deposits 5 | 213,465 | 7,999 | 5.01 | % | 8,290 | 37 | 0.59 | % | |||||||||||||||||||||||||||
| Repurchase agreements | 1,238,139 | 24,185 | 2.61 | % | 936,840 | 1,435 | 0.20 | % | |||||||||||||||||||||||||||
| FHLB advances | 738,004 | 26,910 | 4.81 | % | 346,465 | 4,628 | 1.76 | % | |||||||||||||||||||||||||||
| FRB Bank Term Funding | 1,929,322 | 63,160 | 4.38 | % | — | — | — | % | |||||||||||||||||||||||||||
| Subordinated debentures and other borrowed funds | 208,891 | 5,737 | 3.67 | % | 190,810 | 4,288 | 3.00 | % | |||||||||||||||||||||||||||
| Total funding liabilities | 24,060,452 | 218,934 | 1.22 | % | 23,140,379 | 20,235 | 0.12 | % | |||||||||||||||||||||||||||
| Other liabilities | 256,022 | 249,001 | |||||||||||||||||||||||||||||||||
| Total liabilities | 24,316,474 | 23,389,380 | |||||||||||||||||||||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
| Common stock | 1,109 | 1,107 | |||||||||||||||||||||||||||||||||
| Paid-in capital | 2,345,698 | 2,340,208 | |||||||||||||||||||||||||||||||||
| Retained earnings | 1,017,159 | 881,208 | |||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (443,269) | (273,995) | |||||||||||||||||||||||||||||||||
| Total stockholders’ equity | 2,920,697 | 2,948,528 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 27,237,171 | $ | 26,337,908 | |||||||||||||||||||||||||||||||
| Net interest income (tax-equivalent) | $ | 537,290 | $ | 600,467 | |||||||||||||||||||||||||||||||
| Net interest spread (tax-equivalent) | 2.71 | % | 3.25 | % | |||||||||||||||||||||||||||||||
| Net interest margin (tax-equivalent) | 2.79 | % | 3.26 | % | |||||||||||||||||||||||||||||||
______________________________
1 Includes tax effect of $4.4 million and $4.6 million on tax-exempt municipal loan and lease income for the nine months ended September 30, 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 $7.0 million and $10.9 million on tax-exempt debt securities income for the nine months ended September 30, 2023 and 2022, respectively.
4 Includes tax effect of $644 thousand and $676 thousand on federal income tax credits for the nine months ended September 30, 2023 and 2022, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
18
Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
| Loans Receivable, by Loan Type | % Change from | ||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||||||||||||||||||||||||||||||||||
Custom and owner occupied construction | $ | 306,106 | $ | 315,651 | $ | 298,461 | $ | 288,977 | (3) | % | 3 | % | 6 | % | |||||||||||||||||||||||||||
| Pre-sold and spec construction | 287,048 | 306,440 | 297,895 | 291,146 | (6) | % | (4) | % | (1) | % | |||||||||||||||||||||||||||||||
Total residential construction | 593,154 | 622,091 | 596,356 | 580,123 | (5) | % | (1) | % | 2 | % | |||||||||||||||||||||||||||||||
| Land development | 234,995 | 238,897 | 219,842 | 217,878 | (2) | % | 7 | % | 8 | % | |||||||||||||||||||||||||||||||
| Consumer land or lots | 184,685 | 182,251 | 206,604 | 204,241 | 1 | % | (11) | % | (10) | % | |||||||||||||||||||||||||||||||
| Unimproved land | 87,089 | 91,157 | 104,662 | 101,684 | (4) | % | (17) | % | (14) | % | |||||||||||||||||||||||||||||||
Developed lots for operative builders | 62,485 | 65,134 | 60,987 | 62,800 | (4) | % | 2 | % | (1) | % | |||||||||||||||||||||||||||||||
| Commercial lots | 84,194 | 94,334 | 93,952 | 94,395 | (11) | % | (10) | % | (11) | % | |||||||||||||||||||||||||||||||
| Other construction | 982,384 | 1,039,192 | 938,406 | 893,846 | (5) | % | 5 | % | 10 | % | |||||||||||||||||||||||||||||||
Total land, lot, and other construction | 1,635,832 | 1,710,965 | 1,624,453 | 1,574,844 | (4) | % | 1 | % | 4 | % | |||||||||||||||||||||||||||||||
| Owner occupied | 2,976,821 | 2,934,724 | 2,833,469 | 2,811,614 | 1 | % | 5 | % | 6 | % | |||||||||||||||||||||||||||||||
| Non-owner occupied | 3,765,266 | 3,714,531 | 3,531,673 | 3,448,044 | 1 | % | 7 | % | 9 | % | |||||||||||||||||||||||||||||||
Total commercial real estate | 6,742,087 | 6,649,255 | 6,365,142 | 6,259,658 | 1 | % | 6 | % | 8 | % | |||||||||||||||||||||||||||||||
| Commercial and industrial | 1,363,198 | 1,370,393 | 1,377,888 | 1,308,272 | (1) | % | (1) | % | 4 | % | |||||||||||||||||||||||||||||||
| Agriculture | 785,208 | 770,378 | 735,553 | 770,282 | 2 | % | 7 | % | 2 | % | |||||||||||||||||||||||||||||||
| 1st lien | 2,054,497 | 1,956,205 | 1,808,502 | 1,738,151 | 5 | % | 14 | % | 18 | % | |||||||||||||||||||||||||||||||
| Junior lien | 47,490 | 46,616 | 40,445 | 36,677 | 2 | % | 17 | % | 29 | % | |||||||||||||||||||||||||||||||
| Total 1-4 family | 2,101,987 | 2,002,821 | 1,848,947 | 1,774,828 | 5 | % | 14 | % | 18 | % | |||||||||||||||||||||||||||||||
| Multifamily residential | 714,822 | 664,859 | 622,185 | 574,366 | 8 | % | 15 | % | 24 | % | |||||||||||||||||||||||||||||||
| Home equity lines of credit | 950,204 | 940,048 | 872,899 | 841,143 | 1 | % | 9 | % | 13 | % | |||||||||||||||||||||||||||||||
| Other consumer | 233,980 | 231,519 | 220,035 | 219,036 | 1 | % | 6 | % | 7 | % | |||||||||||||||||||||||||||||||
| Total consumer | 1,184,184 | 1,171,567 | 1,092,934 | 1,060,179 | 1 | % | 8 | % | 12 | % | |||||||||||||||||||||||||||||||
| States and political subdivisions | 833,618 | 812,688 | 797,656 | 776,875 | 3 | % | 5 | % | 7 | % | |||||||||||||||||||||||||||||||
| Other | 209,983 | 214,951 | 198,012 | 193,526 | (2) | % | 6 | % | 9 | % | |||||||||||||||||||||||||||||||
Total loans receivable, including loans held for sale | 16,164,073 | 15,989,968 | 15,259,126 | 14,872,953 | 1 | % | 6 | % | 9 | % | |||||||||||||||||||||||||||||||
Less loans held for sale 1 | (29,027) | (35,006) | (12,314) | (21,720) | (17) | % | 136 | % | 34 | % | |||||||||||||||||||||||||||||||
| Total loans receivable | $ | 16,135,046 | $ | 15,954,962 | $ | 15,246,812 | $ | 14,851,233 | 1 | % | 6 | % | 9 | % | |||||||||||||||||||||||||||
______________________________
1 Loans held for sale are primarily 1st lien 1-4 family loans.
19
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) | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2023 | Sep 30, 2023 | ||||||||||||||||||||||||||||||||||
Custom and owner occupied construction | $ | 219 | 219 | 224 | 227 | 219 | — | — | |||||||||||||||||||||||||||||||||
| Pre-sold and spec construction | 763 | 1,548 | 389 | 1,016 | — | 763 | — | ||||||||||||||||||||||||||||||||||
Total residential construction | 982 | 1,767 | 613 | 1,243 | 219 | 763 | — | ||||||||||||||||||||||||||||||||||
| Land development | 80 | 118 | 138 | 149 | 80 | — | — | ||||||||||||||||||||||||||||||||||
| Consumer land or lots | 314 | 239 | 278 | 285 | 314 | — | — | ||||||||||||||||||||||||||||||||||
| Unimproved land | 36 | 43 | 78 | 94 | 36 | — | — | ||||||||||||||||||||||||||||||||||
Developed lots for operative builders | 608 | 608 | 251 | 255 | — | 608 | — | ||||||||||||||||||||||||||||||||||
| Commercial lots | 188 | 188 | — | — | 141 | 47 | — | ||||||||||||||||||||||||||||||||||
| Other construction | 12,884 | 12,884 | 12,884 | 12,884 | 12,884 | — | — | ||||||||||||||||||||||||||||||||||
Total land, lot and other construction | 14,110 | 14,080 | 13,629 | 13,667 | 13,455 | 655 | — | ||||||||||||||||||||||||||||||||||
| Owner occupied | 1,445 | 2,251 | 2,076 | 2,687 | 1,326 | 119 | — | ||||||||||||||||||||||||||||||||||
| Non-owner occupied | 15,105 | 4,450 | 805 | 820 | 15,105 | — | — | ||||||||||||||||||||||||||||||||||
Total commercial real estate | 16,550 | 6,701 | 2,881 | 3,507 | 16,431 | 119 | — | ||||||||||||||||||||||||||||||||||
| Commercial and Industrial | 1,367 | 1,339 | 3,326 | 3,453 | 907 | 460 | — | ||||||||||||||||||||||||||||||||||
| Agriculture | 2,450 | 2,564 | 2,574 | 4,102 | 2,449 | 1 | — | ||||||||||||||||||||||||||||||||||
| 1st lien | 2,766 | 2,794 | 2,678 | 2,149 | 2,644 | 107 | 15 | ||||||||||||||||||||||||||||||||||
| Junior lien | 363 | 273 | 166 | 139 | 147 | 216 | — | ||||||||||||||||||||||||||||||||||
| Total 1-4 family | 3,129 | 3,067 | 2,844 | 2,288 | 2,791 | 323 | 15 | ||||||||||||||||||||||||||||||||||
| Multifamily residential | — | — | 4,535 | 4,635 | — | — | — | ||||||||||||||||||||||||||||||||||
| Home equity lines of credit | 1,612 | 1,256 | 1,393 | 1,550 | 1,402 | 210 | — | ||||||||||||||||||||||||||||||||||
| Other consumer | 942 | 1,116 | 911 | 555 | 726 | 183 | 33 | ||||||||||||||||||||||||||||||||||
| Total consumer | 2,554 | 2,372 | 2,304 | 2,105 | 2,128 | 393 | 33 | ||||||||||||||||||||||||||||||||||
| Other | 1,141 | 132 | 36 | 59 | — | 1,141 | — | ||||||||||||||||||||||||||||||||||
| Total | $ | 42,283 | 32,022 | 32,742 | 35,059 | 38,380 | 3,855 | 48 | |||||||||||||||||||||||||||||||||
20
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
| Accruing 30-89 Days Delinquent Loans, by Loan Type | % Change from | ||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||||||||||||||||||||||||||||||||||
Custom and owner occupied construction | $ | — | $ | 324 | $ | 1,082 | $ | 427 | (100) | % | (100) | % | (100) | % | |||||||||||||||||||||||||||
| Pre-sold and spec construction | 599 | 129 | 1,712 | — | 364 | % | (65) | % | n/m | ||||||||||||||||||||||||||||||||
Total residential construction | 599 | 453 | 2,794 | 427 | 32 | % | (79) | % | 40 | % | |||||||||||||||||||||||||||||||
| Land development | 44 | 244 | — | 596 | (82) | % | n/m | (93) | % | ||||||||||||||||||||||||||||||||
| Consumer land or lots | 528 | 565 | 442 | — | (7) | % | 19 | % | n/m | ||||||||||||||||||||||||||||||||
| Unimproved land | 87 | — | 120 | 36 | n/m | (28) | % | 142 | % | ||||||||||||||||||||||||||||||||
Developed lots for operative builders | — | — | 958 | 30 | n/m | (100) | % | (100) | % | ||||||||||||||||||||||||||||||||
| Commercial lots | 1,245 | 3,404 | 47 | 2,158 | (63) | % | 2,549 | % | (42) | % | |||||||||||||||||||||||||||||||
| Other construction | — | 1,114 | 209 | — | (100) | % | (100) | % | n/m | ||||||||||||||||||||||||||||||||
Total land, lot and other construction | 1,904 | 5,327 | 1,776 | 2,820 | (64) | % | 7 | % | (32) | % | |||||||||||||||||||||||||||||||
| Owner occupied | 652 | 1,053 | 3,478 | 527 | (38) | % | (81) | % | 24 | % | |||||||||||||||||||||||||||||||
| Non-owner occupied | 213 | 8,595 | 496 | — | (98) | % | (57) | % | n/m | ||||||||||||||||||||||||||||||||
Total commercial real estate | 865 | 9,648 | 3,974 | 527 | (91) | % | (78) | % | 64 | % | |||||||||||||||||||||||||||||||
| Commercial and industrial | 2,946 | 2,096 | 3,439 | 2,087 | 41 | % | (14) | % | 41 | % | |||||||||||||||||||||||||||||||
| Agriculture | 604 | 871 | 1,367 | 641 | (31) | % | (56) | % | (6) | % | |||||||||||||||||||||||||||||||
| 1st lien | 1,006 | 1,115 | 2,174 | 761 | (10) | % | (54) | % | 32 | % | |||||||||||||||||||||||||||||||
| Junior lien | 355 | 385 | 190 | 72 | (8) | % | 87 | % | 393 | % | |||||||||||||||||||||||||||||||
| Total 1-4 family | 1,361 | 1,500 | 2,364 | 833 | (9) | % | (42) | % | 63 | % | |||||||||||||||||||||||||||||||
| Multifamily Residential | — | — | 492 | — | n/m | (100) | % | n/m | |||||||||||||||||||||||||||||||||
| Home equity lines of credit | 3,638 | 2,021 | 1,182 | 1,004 | 80 | % | 208 | % | 262 | % | |||||||||||||||||||||||||||||||
| Other consumer | 1,821 | 1,714 | 1,824 | 1,089 | 6 | % | — | % | 67 | % | |||||||||||||||||||||||||||||||
| Total consumer | 5,459 | 3,735 | 3,006 | 2,093 | 46 | % | 82 | % | 161 | % | |||||||||||||||||||||||||||||||
| States and political subdivisions | — | — | 28 | — | n/m | (100) | % | n/m | |||||||||||||||||||||||||||||||||
| Other | 1,515 | 1,233 | 1,727 | 1,494 | 23 | % | (12) | % | 1 | % | |||||||||||||||||||||||||||||||
| Total | $ | 15,253 | $ | 24,863 | $ | 20,967 | $ | 10,922 | (39) | % | (27) | % | 40 | % | |||||||||||||||||||||||||||
______________________________
n/m - not measurable
21
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) | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||||||
Custom and owner occupied construction | $ | — | — | 17 | 17 | — | — | ||||||||||||||||||||||||||||
| Pre-sold and spec construction | (12) | (8) | (15) | (12) | — | 12 | |||||||||||||||||||||||||||||
| Total residential construction | (12) | (8) | 2 | 5 | — | 12 | |||||||||||||||||||||||||||||
| Land development | (134) | (132) | (34) | (24) | — | 134 | |||||||||||||||||||||||||||||
| Consumer land or lots | (14) | (14) | (46) | (46) | — | 14 | |||||||||||||||||||||||||||||
| Unimproved land | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total land, lot and other construction | (148) | (146) | (80) | (70) | — | 148 | |||||||||||||||||||||||||||||
| Owner occupied | (104) | (76) | 555 | 229 | 16 | 120 | |||||||||||||||||||||||||||||
| Non-owner occupied | 500 | 299 | (242) | (4) | 507 | 7 | |||||||||||||||||||||||||||||
| Total commercial real estate | 396 | 223 | 313 | 225 | 523 | 127 | |||||||||||||||||||||||||||||
| Commercial and industrial | (11) | (18) | (70) | 395 | 616 | 627 | |||||||||||||||||||||||||||||
| Agriculture | — | — | (7) | (5) | — | — | |||||||||||||||||||||||||||||
| 1st lien | 98 | 101 | (109) | (99) | 111 | 13 | |||||||||||||||||||||||||||||
| Junior lien | 32 | 38 | (302) | (303) | 49 | 17 | |||||||||||||||||||||||||||||
| Total 1-4 family | 130 | 139 | (411) | (402) | 160 | 30 | |||||||||||||||||||||||||||||
| Multifamily residential | — | — | 136 | — | — | — | |||||||||||||||||||||||||||||
| Home equity lines of credit | 20 | 56 | (91) | (98) | 102 | 82 | |||||||||||||||||||||||||||||
| Other consumer | 816 | 401 | 451 | 257 | 999 | 183 | |||||||||||||||||||||||||||||
| Total consumer | 836 | 457 | 360 | 159 | 1,101 | 265 | |||||||||||||||||||||||||||||
| Other | 5,430 | 3,765 | 7,572 | 5,540 | 7,884 | 2,454 | |||||||||||||||||||||||||||||
| Total | $ | 6,621 | 4,412 | 7,815 | 5,847 | 10,284 | 3,663 | ||||||||||||||||||||||||||||
Visit our website at www.glacierbancorp.com
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