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Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2022
Source: Nasdaq GlobeNewswire / 21 Apr 2022 15:30:01 America/Chicago
1st Quarter 2022 Highlights:
- The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, organically grew $407 million, or 12 percent annualized, in the current quarter.
- Net income of $67.8 million for the current quarter, an increase of $17.1 million, or 34 percent, from the prior quarter net income of $50.7 million.
- Non-interest expense of $130 million, decreased $3.7 million, or 3 percent, over the prior quarter non-interest expense of $134 million. Excluding the $6.2 million of acquisition-related expenses, non-interest expense was $124 million during the current quarter.
- Net interest income, on a tax-equivalent basis, was $190 million in the current quarter. Excluding the PPP loans, net interest income was $187 million which increased $3.2 million, or 2 percent, over the prior quarter net interest income of $184 million.
- Net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.20 percent compared to 3.21 percent in the prior quarter. The core net interest margin for the current quarter of 3.07 percent, increased 3 basis points from 3.04 percent in the prior quarter.
- Core deposits increased $383 million, or 7 percent annualized, during the current quarter.
- The Company completed the core system conversion of the Altabank division. This conversion was the largest and most complex in the Company’s history.
- Declared a quarterly dividend of $0.33 per share, an increase of $0.01 per share or 3 percent over the prior quarter regular dividend. The Company has declared 148 consecutive quarterly dividends and has increased the dividend 49 times.
Financial Summary
At or for the Three Months ended (Dollars in thousands, except per share and market data) Mar 31,
2022Dec 31,
2021Mar 31,
2021Operating results Net income $ 67,795 50,709 80,802 Basic earnings per share $ 0.61 0.46 0.85 Diluted earnings per share $ 0.61 0.46 0.85 Dividends declared per share1 $ 0.33 0.42 0.31 Market value per share Closing $ 50.28 56.70 57.08 High $ 60.69 60.54 67.35 Low $ 49.61 52.62 44.55 Selected ratios and other data Number of common stock shares outstanding 110,763,316 110,687,533 95,501,819 Average outstanding shares - basic 110,724,655 110,687,365 95,465,801 Average outstanding shares - diluted 110,800,001 110,789,632 95,546,922 Return on average assets (annualized) 1.06 % 0.78 % 1.73 % Return on average equity (annualized) 8.97 % 6.28 % 14.12 % Efficiency ratio 57.11 % 57.68 % 46.75 % Dividend payout ratio2 54.10 % 91.30 % 36.47 % Loan to deposit ratio 63.52 % 63.24 % 70.72 % Number of full time equivalent employees 3,439 3,436 2,994 Number of locations 223 224 193 Number of ATMs 273 273 250 ______________________
1 Includes a special dividend declared of $0.10 per share for the three months ended December 31, 2021.
2 Excluding the special dividend, the dividend payout ratio was 69.57 percent for the three months ended December 31, 2021.KALISPELL, Mont., April 21, 2022 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $67.8 million for the current quarter, a decrease of $13.0 million, or 16 percent, from the $80.8 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.61 per share, a decrease of 28 percent from the prior year first quarter diluted earnings per share of $0.85. The $13.0 million decrease in first quarter earnings over the prior year first quarter was driven primarily by a $15.4 million decrease in the PPP related income, a $12.6 million decrease in gain on the sale of residential loans, an increase of $7.0 million of credit loss expense, and a $6.1 million increase in acquisition-related expenses. For the quarter, the Company experienced a $28.7 million increase, or 18 percent, in net interest income over the prior year first quarter. “The Glacier team started off the year with strong loan growth and earnings momentum,” said Randy Chesler, President and Chief Executive Officer. “While accelerating inflation and higher interest rates may create some economic headwinds, we remain optimistic about the year.”
Asset Summary
$ Change from (Dollars in thousands) Mar 31,
2022Dec 31,
2021Mar 31,
2021Dec 31,
2021Mar 31,
2021Cash and cash equivalents $ 436,805 437,686 878,450 (881 ) (441,645 ) Debt securities, available-for-sale 6,535,763 9,170,849 5,853,315 (2,635,086 ) 682,448 Debt securities, held-to-maturity 3,576,941 1,199,164 588,751 2,377,777 2,988,190 Total debt securities 10,112,704 10,370,013 6,442,066 (257,309 ) 3,670,638 Loans receivable Residential real estate 1,125,648 1,051,883 745,097 73,765 380,551 Commercial real estate 8,865,585 8,630,831 6,474,701 234,754 2,390,884 Other commercial 2,661,048 2,664,190 3,100,584 (3,142 ) (439,536 ) Home equity 715,963 736,288 625,369 (20,325 ) 90,594 Other consumer 362,775 348,839 324,178 13,936 38,597 Loans receivable 13,731,019 13,432,031 11,269,929 298,988 2,461,090 Allowance for credit losses (176,159 ) (172,665 ) (156,446 ) (3,494 ) (19,713 ) Loans receivable, net 13,554,860 13,259,366 11,113,483 295,494 2,441,377 Other assets 1,995,955 1,873,580 1,336,553 122,375 659,402 Total assets $ 26,100,324 25,940,645 19,770,552 159,679 6,329,772
Total debt securities of $10.113 billion at March 31, 2022 decreased $257 million, or 2 percent, during the current quarter and increased $3.671 billion, or 57 percent, from the prior year first quarter. During 2020 and 2021, the Company experienced a sizeable increase in the investment portfolio as a result of the excess liquidity from the increase in core deposits. Debt securities represented 39 percent of total assets at March 31, 2022 compared to 40 percent at December 31, 2021 and 33 percent of total assets at March 31, 2021.During the current quarter, the Company transferred $2.247 billion of available-for-sale (“AFS”) debt securities with a $55.7 million unrealized loss to held-to-maturity (“HTM”) designation after the Company determined it had both the intent and ability to hold such securities until maturity.
The loan portfolio of $13.731 billion at March 31, 2022 increased $299 million, or 2 percent, in the current quarter and increased $2.461 billion, or 22 percent, from the prior year first quarter. Excluding the PPP loans, the loan portfolio increased $407 million, or 12 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $235 million, or 11 percent annualized. Excluding the PPP loans and loans from the acquisition of Altabancorp and its Altabank subsidiary (“Alta”), the loan portfolio increased $1.486 billion, or 14 percent, from the prior year first quarter with the largest dollar increase in commercial real estate loans which increased $988 million, or 15 percent.
Credit Quality Summary
At or for the
Three Months
endedAt or for the
Year endedAt or for the
Three Months
ended(Dollars in thousands) Mar 31,
2022Dec 31,
2021Mar 31,
2021Allowance for credit losses Balance at beginning of period $ 172,665 158,243 158,243 Acquisitions — 371 — Provision for credit losses 4,344 16,380 489 Charge-offs (2,695 ) (11,594 ) (4,246 ) Recoveries 1,845 9,265 1,960 Balance at end of period $ 176,159 172,665 156,446 Provision for credit losses Loan portfolio $ 4,344 16,380 489 Unfunded loan commitments 2,687 6,696 (441 ) Total provision for credit losses $ 7,031 23,076 48 Other real estate owned $ — — 1,839 Other foreclosed assets 43 18 1,126 Accruing loans 90 days or more past due 4,510 17,141 3,733 Non-accrual loans 57,923 50,532 29,887 Total non-performing assets $ 62,476 67,691 36,585 Non-performing assets as a percentage of subsidiary assets 0.24 % 0.26 % 0.19 % Allowance for credit losses as a percentage of non-performing loans 282 % 255 % 465 % Allowance for credit losses as a percentage of total loans 1.28 % 1.29 % 1.39 % Net charge-offs as a percentage of total loans 0.01 % 0.02 % 0.02 % Accruing loans 30-89 days past due $ 16,080 50,566 44,616 Accruing troubled debt restructurings $ 33,702 34,591 41,345 Non-accrual troubled debt restructurings $ 2,501 2,627 4,702 U.S. government guarantees included in non-performing assets $ 5,068 4,028 2,778
Non-performing assets of $62.5 million at March 31, 2022 decreased $5.2 million, or 8 percent, over the prior quarter. Non-performing assets increased $25.9 million, or 71 percent, over the prior year first quarter primarily as a result of the Alta acquisition and two credit relationships. Non-performing assets as a percentage of subsidiary assets at March 31, 2022 was 0.24 percent compared to 0.26 percent in the prior quarter and 0.19 percent in the prior year first quarter.Early stage delinquencies (accruing loans 30-89 days past due) of $16.1 million at March 31, 2022 decreased $34.5 million from the prior quarter with a large portion of the decrease primarily isolated to a single credit relationship. Early stage delinquencies decreased $28.5 million from the prior year first quarter. Early stage delinquencies as a percentage of loans at March 31, 2022 was 0.12 percent, which was a decrease of 26 basis points from prior quarter and an 28 basis points increase from prior year first quarter.
The current quarter credit loss expense of $7.0 million included $4.3 million of credit loss from loans and $2.7 million of credit loss from unfunded loan commitments.
The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at March 31 2022 was 1.28 percent which was a 1 basis point decrease compared to the prior quarter and an 11 basis points decrease from the prior year first quarter.
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 LoansAccruing
Loans 30-89
Days Past Due
as a Percent of
LoansNon-Performing
Assets to
Total Subsidiary
AssetsFirst 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 % First quarter 2021 489 2,286 1.39 % 0.40 % 0.19 % Fourth quarter 2020 (1,528 ) 4,781 1.42 % 0.20 % 0.19 % Third quarter 2020 2,869 826 1.42 % 0.15 % 0.25 % Second quarter 2020 13,552 1,233 1.42 % 0.22 % 0.27 %
The current quarter provision for credit loss expense for loans was $4.3 million which was a decrease of $15.0 million from the prior quarter, which was driven by the prior quarter acquisition of Alta and the requirement to fully fund an allowance for credit loses on loans post-acquisition. Current quarter provision for credit loss expense increased $3.9 million from the prior year first quarter provision for credit loss expense of $489 thousand.Net charge-offs for the current quarter were $850 thousand compared to $616 thousand for the prior quarter and $2.3 million from the same quarter last year. 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.
PPP Loans
At or for the Three Months ended (Dollars in thousands) Mar 31, 2022 Dec 31, 2021 Mar 31, 2021 PPP interest income $ 3,348 8,660 13,523 Deferred compensation on originating PPP loans — — 5,213 Total PPP income impact $ 3,348 8,660 18,736 Total PPP Loans $ 60,680 168,677 975,791 Net remaining fees 1,912 5,077 28,134
The Company continued to actively work with its PPP loan customers to obtain forgiveness from the SBA during the current quarter. The Company received $108 million in PPP loan forgiveness during the current quarter. As of March 31, 2022, the Company had $60.7 million of PPP loans remaining.In the current quarter, the Company recognized $3.3 million of interest income (including deferred fees and costs) from the PPP loans. The income recognized in the current quarter included $3.0 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of the PPP loans at March 31, 2022 was $1.9 million, which will be recognized into interest income over the remaining life of the loans or when the loans are forgiven in whole or in part by the SBA.
Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on regulatory classification is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.
Liability Summary
$ Change from (Dollars in thousands) Mar 31,
2022Dec 31,
2021Mar 31,
2021Dec 31,
2021Mar 31,
2021Deposits Non-interest bearing deposits $ 7,990,003 7,779,288 6,040,440 210,715 1,949,563 NOW and DDA accounts 5,376,881 5,301,832 4,035,455 75,049 1,341,426 Savings accounts 3,287,521 3,180,046 2,206,592 107,475 1,080,929 Money market deposit accounts 4,044,655 4,014,128 2,817,708 30,527 1,226,947 Certificate accounts 995,147 1,036,077 965,986 (40,930 ) 29,161 Core deposits, total 21,694,207 21,311,371 16,066,181 382,836 5,628,026 Wholesale deposits 3,688 25,878 38,143 (22,190 ) (34,455 ) Deposits, total 21,697,895 21,337,249 16,104,324 360,646 5,593,571 Repurchase agreements 958,479 1,020,794 996,878 (62,315 ) (38,399 ) Federal Home Loan Bank advances 80,000 — — 80,000 80,000 Other borrowed funds 57,258 44,094 33,452 13,164 23,806 Subordinated debentures 132,661 132,620 132,499 41 162 Other liabilities 239,838 228,266 208,014 11,572 31,824 Total liabilities $ 23,166,131 22,763,023 17,475,167 403,108 5,690,964
Core deposits of $21.694 billion increased $383 million, or 7 percent annualized, during the current quarter and non-interest bearing deposits increased $211 million, or 11 percent annualized, during the current quarter. Excluding the Alta acquisition, core deposits increased $2.354 billion, or 15 percent, from the prior year first quarter. During 2020 and 2021, the Company experienced unprecedented increases in core deposits as a result of increased customer savings and federal stimulus. During the current quarter, the Company continued to experience a slowing of the deposit growth rates. Non-interest bearing deposits were 37 percent of total core deposits at March 31, 2022 and December 31, 2021 compared to 38 percent at March 31, 2021.Stockholders’ Equity Summary
$ Change from (Dollars in thousands, except per share data) Mar 31,
2022Dec 31,
2021Mar 31,
2021Dec 31,
2021Mar 31,
2021Common equity $ 3,182,002 3,150,263 2,215,465 31,739 966,537 Accumulated other comprehensive (loss) income (247,809 ) 27,359 79,920 (275,168 ) (327,729 ) Total stockholders’ equity 2,934,193 3,177,622 2,295,385 (243,429 ) 638,808 Goodwill and core deposit intangible, net (1,034,987 ) (1,037,652 ) (567,034 ) 2,665 (467,953 ) Tangible stockholders’ equity $ 1,899,206 2,139,970 1,728,351 (240,764 ) 170,855 Stockholders’ equity to total assets 11.24 % 12.25 % 11.61 % Tangible stockholders’ equity to total tangible assets 7.58 % 8.59 % 9.00 % Book value per common share $ 26.49 28.71 24.03 (2.22 ) 2.46 Tangible book value per common share $ 17.15 19.33 18.10 (2.18 ) (0.95 )
Tangible stockholders’ equity of $1.899 billion at Mach 31, 2022 decreased $241 million, or 11 percent, from the prior quarter which was primarily driven by a decrease in the unrealized gain on the AFS debt securities during the current quarter which was driven by an increase in interest rates. Tangible stockholders’ equity at March 31, 2022 increased $171 million, or 10 percent, from the prior year first quarter which largely was the result of $840 million of Company common stock issued for the acquisition of Alta, despite the increase in goodwill and core deposit intangibles associated with the Alta acquisition and a decrease in the unrealized gain on the AFS debt securities. Tangible book value per common share of $17.15 at the current quarter end decreased $2.18 per share, or 11 percent, from the prior quarter and decreased $0.95 per share, or 5 percent, from a year ago primarily as a result of the decrease in unrealized gain on AFS debt securities.Cash Dividends
On March 30, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share, an increase of $0.01 per share or 3 percent over the prior quarter regular dividend. The dividend was payable April 21, 2022 to shareholders of record on April 12, 2022. The dividend was the 148th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.Operating Results for Three Months Ended March 31, 2022
Compared to December 31, 2021, and March 31, 2021Income Summary
Three Months ended $ Change from (Dollars in thousands) Mar 31,
2022Dec 31,
2021Mar 31,
2021Dec 31,
2021Mar 31,
2021Net interest income Interest income $ 190,516 192,825 161,552 (2,309 ) 28,964 Interest expense 4,961 5,203 4,740 (242 ) 221 Total net interest income 185,555 187,622 156,812 (2,067 ) 28,743 Non-interest income Service charges and other fees 17,111 17,576 12,792 (465 ) 4,319 Miscellaneous loan fees and charges 3,555 3,745 2,778 (190 ) 777 Gain on sale of loans 9,015 11,431 21,624 (2,416 ) (12,609 ) Gain (loss) on sale of investments 446 (693 ) 284 1,139 162 Other income 3,436 2,303 2,643 1,133 793 Total non-interest income 33,563 34,362 40,121 (799 ) (6,558 ) Total income 219,118 221,984 196,933 (2,866 ) 22,185 Net interest margin (tax-equivalent) 3.20 % 3.21 % 3.74 %
Net Interest Income
The current quarter net interest income of $186 million decreased $2.1 million, or 1 percent, compared to the prior quarter and increased $28.7 million, or 18 percent, from the prior year first quarter. The current quarter interest income of $191 million decreased $2.3 million, or 1 percent, over the prior quarter and was driven by the decrease of $5.3 million in interest income from the PPP loans. The current quarter interest income increased $29.0 million over the prior year first quarter primarily due to $30.2 million of interest income from Altabank division which more than offset the $10.2 million decrease in interest income from the PPP loans.The current quarter interest expense of $5.0 million decreased $242 thousand, or 5 percent, over the prior quarter. Interest expense increased $221 thousand, or 5 percent, over the prior year first quarter primarily the result of an increase in deposit balances. The total cost of funding (including non-interest bearing deposits) was 9 basis points in the current and prior quarters compared to 12 basis points in the prior year first quarter which was driven by the decrease in rates on deposits and borrowings.
The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.20 percent compared to 3.21 percent in the prior quarter and 3.74 in the prior year first quarter. The core net interest margin, excluding 8 basis points of discount accretion, 1 basis point from non-accrual interest and 4 basis points increase from the PPP loans, was 3.07 percent compared to 3.04 in the prior quarter and 3.56 percent in the prior year first quarter. The core net interest margin increased 3 basis points in the current quarter as a result of increased investment yields that more than offset the decrease in the core loan yields. The core net interest margin decreased 49 basis points from the prior first quarter due to the decrease in core loan yields.
Non-interest Income
Non-interest income for the current quarter totaled $33.6 million which was a decrease of $799 thousand, or 2 percent, over the prior quarter and a decrease of $6.6 million, or 16 percent, over the same quarter last year. Gain on the sale of residential loans of $9.0 million for the current quarter decreased $2.4 million, or 21 percent, compared to the prior quarter and decreased $12.6 million, or 58 percent, from the prior year first quarter. The current quarter mortgage activity was lower than prior periods as a result reduced mortgage purchase and refinance activity after the historic highs the Company recently experienced.Non-interest Expense Summary
Three Months ended $ Change from (Dollars in thousands) Mar 31,
2022Dec 31,
2021Mar 31,
2021Dec 31,
2021Mar 31,
2021Compensation and employee benefits $ 79,074 77,703 62,468 1,371 16,606 Occupancy and equipment 10,964 11,259 9,515 (295 ) 1,449 Advertising and promotions 3,232 3,436 2,371 (204 ) 861 Data processing 7,475 7,468 5,206 7 2,269 Other real estate owned and foreclosed assets — 34 12 (34 ) (12 ) Regulatory assessments and insurance 3,055 2,657 1,879 398 1,176 Core deposit intangibles amortization 2,664 2,807 2,488 (143 ) 176 Other expenses 23,844 28,683 12,646 (4,839 ) 11,198 Total non-interest expense $ 130,308 134,047 96,585 (3,739 ) 33,723
Total non-interest expense of $130 million for the current quarter decreased $3.7 million, or 2.8 percent, over the prior quarter which was driven by a $2.0 million decrease in acquisition-related expenses during the current quarter. Acquisition-related expenses was $6.2 million in the current quarter compared to $8.2 million in the prior quarter and $104 thousand in the prior year first quarter. “Excluding current quarter acquisition-related expense, non-interest expense was $124 million. For the quarter, the Bank divisions have been excellent in controlling non-interest expenses,” said Ron Copher, Chief Financial Officer.Total non-interest expense increased $33.7 million, or 35 percent, over the prior year first quarter which was primarily driven by the acquisition of Alta. Excluding $17.5 million of non-interest expense from the Altabank division, $5.2 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $4.9 million, or 5 percent, from the prior year first quarter. The increase includes $1.7 million from compensation and employee benefits driven by the increased number of employees, annual salary increases and $1.0 million increased expenses associated with equity investment in tax credits.
Federal and State Income Tax Expense
Tax expense during the first quarter of 2022 was $14.0 million, an increase of $4.7 million, or 51 percent, compared to the prior quarter and a decrease of $5.5 million, or 28 percent, from the prior year first quarter. The effective tax rate in the current quarter was 17.1 percent compared to 15.5 percent in the prior quarter with the increase driven by higher taxable income. The effective tax rate in the current quarter of 17.1 percent compared to 19.4 percent in the prior year first quarter with the decrease in the current quarter attributable to lower taxable income.Efficiency Ratio
The efficiency ratio was 57.11 percent in the current quarter compared to 57.68 percent in the prior quarter and 46.75 in the prior year first quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 54.33 percent in the current quarter compared to 54.09 percent in the prior quarter and 46.70 percent in the prior year first quarter. The increase in the efficiency ratio from the prior year first quarter was driven by the decrease in gain on the sale of residential loans, the decrease in income from the PPP loans and the increase in non-interest expense.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 the negative version of those words 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 with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those set forth in this news release:- the risks associated with lending and potential adverse changes on the credit quality of loans in the Company’s portfolio;
- changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin and overall profitability;
- legislative or regulatory changes, such as the those signaled by the Biden Administration, as well as increased banking and consumer protection regulation that adversely affect the Company’s business;
- ability to complete pending or prospective future acquisitions;
- costs or difficulties related to the completion and integration of acquisitions;
- the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
- reduced demand for banking products and services;
- the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
- competition among financial institutions in the Company's markets may increase significantly;
- the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
- the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
- consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
- dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
- material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
- natural disasters, including fires, floods, earthquakes, and other unexpected events;
- the Company’s success in managing risks involved in the foregoing; and
- the effects of any reputational damage to the Company resulting from any of the foregoing.
The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.
Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, April 22, 2022. The conference call will be accessible by telephone and webcast. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 8258327. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/oshci2jh. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 8258327 by April 29, 2022.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).Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition(Dollars in thousands, except per share data) Mar 31,
2022Dec 31,
2021Mar 31,
2021Assets Cash on hand and in banks $ 282,335 198,087 227,745 Interest bearing cash deposits 154,470 239,599 650,705 Cash and cash equivalents 436,805 437,686 878,450 Debt securities, available-for-sale 6,535,763 9,170,849 5,853,315 Debt securities, held-to-maturity 3,576,941 1,199,164 588,751 Total debt securities 10,112,704 10,370,013 6,442,066 Loans held for sale, at fair value 51,284 60,797 118,731 Loans receivable 13,731,019 13,432,031 11,269,929 Allowance for credit losses (176,159 ) (172,665 ) (156,446 ) Loans receivable, net 13,554,860 13,259,366 11,113,483 Premises and equipment, net 373,123 372,597 322,354 Other real estate owned and foreclosed assets 43 18 2,965 Accrued interest receivable 81,467 76,673 79,331 Deferred tax asset 120,025 27,693 — Core deposit intangible, net 49,594 52,259 53,021 Goodwill 985,393 985,393 514,013 Non-marketable equity securities 13,217 10,020 10,022 Bank-owned life insurance 167,298 167,671 122,843 Other assets 154,511 120,459 113,273 Total assets $ 26,100,324 25,940,645 19,770,552 Liabilities Non-interest bearing deposits $ 7,990,003 7,779,288 6,040,440 Interest bearing deposits 13,707,892 13,557,961 10,063,884 Securities sold under agreements to repurchase 958,479 1,020,794 996,878 FHLB advances 80,000 — — Other borrowed funds 57,258 44,094 33,452 Subordinated debentures 132,661 132,620 132,499 Accrued interest payable 2,284 2,409 2,590 Deferred tax liability — — 3,116 Other liabilities 237,554 225,857 202,308 Total liabilities 23,166,131 22,763,023 17,475,167 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, 117,187,500 shares authorized 1,108 1,107 955 Paid-in capital 2,339,405 2,338,814 1,495,438 Retained earnings - substantially restricted 841,489 810,342 719,072 Accumulated other comprehensive (loss) income (247,809 ) 27,359 79,920 Total stockholders’ equity 2,934,193 3,177,622 2,295,385 Total liabilities and stockholders’ equity $ 26,100,324 25,940,645 19,770,552 Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of OperationsThree Months ended (Dollars in thousands, except per share data) Mar 31,
2022Dec 31,
2021Mar 31,
2021Interest Income Debt securities $ 38,654 35,711 27,306 Residential real estate loans 15,515 13,728 10,146 Commercial loans 124,556 131,158 113,541 Consumer and other loans 11,791 12,228 10,559 Total interest income 190,516 192,825 161,552 Interest Expense Deposits 3,464 3,708 3,014 Securities sold under agreements to
repurchase393 467 689 Federal Home Loan Bank advances 12 — — Other borrowed funds 220 184 174 Subordinated debentures 872 844 863 Total interest expense 4,961 5,203 4,740 Net Interest Income 185,555 187,622 156,812 Provision for credit losses 7,031 27,956 48 Net interest income after provision for credit losses 178,524 159,666 156,764 Non-Interest Income Service charges and other fees 17,111 17,576 12,792 Miscellaneous loan fees and charges 3,555 3,745 2,778 Gain on sale of loans 9,015 11,431 21,624 Gain (loss) on sale of debt securities 446 (693 ) 284 Other income 3,436 2,303 2,643 Total non-interest income 33,563 34,362 40,121 Non-Interest Expense Compensation and employee benefits 79,074 77,703 62,468 Occupancy and equipment 10,964 11,259 9,515 Advertising and promotions 3,232 3,436 2,371 Data processing 7,475 7,468 5,206 Other real estate owned and foreclosed
assets— 34 12 Regulatory assessments and insurance 3,055 2,657 1,879 Core deposit intangibles amortization 2,664 2,807 2,488 Other expenses 23,844 28,683 12,646 Total non-interest expense 130,308 134,047 96,585 Income Before Income Taxes 81,779 59,981 100,300 Federal and state income tax expense 13,984 9,272 19,498 Net Income $ 67,795 50,709 80,802 Glacier Bancorp, Inc.
Average Balance SheetsThree Months ended March 31, 2022 December 31, 2021 (Dollars in thousands) Average
BalanceInterest &
DividendsAverage
Yield/
RateAverage
BalanceInterest &
DividendsAverage
Yield/
RateAssets Residential real estate loans $ 1,140,224 $ 15,515 5.44 % $ 1,104,232 $ 13,728 4.97 % Commercial loans 1 11,318,767 125,919 4.51 % 11,184,129 132,561 4.70 % Consumer and other loans 1,075,102 11,791 4.45 % 1,082,341 12,228 4.48 % Total loans 2 13,534,093 153,225 4.59 % 13,370,702 158,517 4.70 % Tax-exempt debt securities 3 1,723,125 15,664 3.64 % 1,693,761 15,552 3.67 % Taxable debt securities 4 8,883,211 26,465 1.19 % 8,709,938 23,555 1.08 % Total earning assets 24,140,429 195,354 3.28 % 23,774,401 197,624 3.30 % Goodwill and intangibles 1,036,315 1,031,002 Non-earning assets 756,422 950,923 Total assets $ 25,933,166 $ 25,756,326 Liabilities Non-interest bearing deposits $ 7,859,706 $ — — % $ 7,955,888 $ — — % NOW and DDA accounts 5,279,984 845 0.06 % 5,120,484 970 0.08 % Savings accounts 3,246,512 332 0.04 % 3,133,654 346 0.04 % Money market deposit accounts 4,030,795 1,381 0.14 % 3,883,818 1,374 0.14 % Certificate accounts 1,019,595 897 0.36 % 1,051,787 1,004 0.38 % Total core deposits 21,436,592 3,455 0.07 % 21,145,631 3,694 0.07 % Wholesale deposits 5 17,191 9 0.22 % 26,104 14 0.21 % Repurchase agreements 970,544 393 0.16 % 1,015,369 467 0.18 % FHLB advances 15,000 12 0.33 % — — — % Subordinated debentures and other borrowed funds 179,725 1,092 2.46 % 167,545 1,028 2.43 % Total funding liabilities 22,619,052 4,961 0.09 % 22,354,649 5,203 0.09 % Other liabilities 249,316 199,207 Total liabilities 22,868,368 22,553,856 Stockholders’ Equity Common stock 1,107 1,107 Paid-in capital 2,338,887 2,338,013 Retained earnings 847,172 815,726 Accumulated other comprehensive (loss) income (122,368 ) 47,624 Total stockholders’ equity 3,064,798 3,202,470 Total liabilities and stockholders’ equity $ 25,933,166 $ 25,756,326 Net interest income (tax-equivalent) $ 190,393 $ 192,421 Net interest spread (tax-equivalent) 3.19 % 3.21 % Net interest margin (tax-equivalent) 3.20 % 3.21 % ______________________________
1 Includes tax effect of $1.4 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2022 and December 31, 2021, 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 $3.2 million on tax-exempt debt securities income for the three months ended March 31, 2022 and December 31, 2021, respectively.
4 Includes tax effect of $225 thousand on federal income tax credits for the three months ended March 31, 2022 and December 31, 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.Glacier Bancorp, Inc.
Average Balance Sheets (continued)Three Months ended March 31, 2022 March 31, 2021 (Dollars in thousands) Average
BalanceInterest &
DividendsAverage
Yield/
RateAverage
BalanceInterest &
DividendsAverage
Yield/
RateAssets Residential real estate loans $ 1,140,224 $ 15,515 5.44 % $ 893,052 $ 10,146 4.54 % Commercial loans 1 11,318,767 125,919 4.51 % 9,412,281 114,928 4.95 % Consumer and other loans 1,075,102 11,791 4.45 % 949,736 10,559 4.51 % Total loans 2 13,534,093 153,225 4.59 % 11,255,069 135,633 4.89 % Tax-exempt debt securities 3 1,723,125 15,664 3.64 % 1,545,484 14,710 3.81 % Taxable debt securities 4 8,883,211 26,465 1.19 % 4,713,936 15,851 1.35 % Total earning assets 24,140,429 195,354 3.28 % 17,514,489 166,194 3.85 % Goodwill and intangibles 1,036,315 568,222 Non-earning assets 756,422 843,305 Total assets $ 25,933,166 $ 18,926,016 Liabilities Non-interest bearing deposits $ 7,859,706 $ — — % $ 5,591,531 $ — — % NOW and DDA accounts 5,279,984 845 0.06 % 3,830,856 570 0.06 % Savings accounts 3,246,512 332 0.04 % 2,092,517 138 0.03 % Money market deposit accounts 4,030,795 1,381 0.14 % 2,719,267 865 0.13 % Certificate accounts 1,019,595 897 0.36 % 971,584 1,422 0.59 % Total core deposits 21,436,592 3,455 0.07 % 15,205,755 2,995 0.08 % Wholesale deposits 5 17,191 9 0.22 % 38,076 19 0.20 % Repurchase agreements 970,544 393 0.16 % 1,001,394 689 0.28 % FHLB advances 15,000 12 0.33 % — — — % Subordinated debentures and other borrowed funds 179,725 1,092 2.46 % 165,830 1,037 2.54 % Total funding liabilities 22,619,052 4,961 0.09 % 16,411,055 4,740 0.12 % Other liabilities 249,316 193,858 Total liabilities 22,868,368 16,604,913 Stockholders’ Equity Common stock 1,107 955 Paid-in capital 2,338,887 1,495,138 Retained earnings 847,172 710,137 Accumulated other comprehensive (loss) income (122,368 ) 114,873 Total stockholders’ equity 3,064,798 2,321,103 Total liabilities and stockholders’ equity $ 25,933,166 $ 18,926,016 Net interest income (tax-equivalent) $ 190,393 $ 161,454 Net interest spread (tax-equivalent) 3.19 % 3.73 % Net interest margin (tax-equivalent) 3.20 % 3.74 % ______________________________
1 Includes tax effect of $1.4 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2022 and 2021, 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 $3.0 million on tax-exempt debt securities income for the three months ended March 31, 2022 and 2021, respectively.
4 Includes tax effect of $225 thousand and $255 thousand on federal income tax credits for the three months ended March 31, 2022 and 2021, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.Glacier Bancorp, Inc.
Loan Portfolio by Regulatory ClassificationLoans Receivable, by Loan Type % Change from (Dollars in thousands) Mar 31,
2022Dec 31,
2021Mar 31,
2021Dec 31,
2021Mar 31,
2021Custom and owner occupied construction $ 265,579 $ 263,758 $ 153,226 1 % 73 % Pre-sold and spec construction 258,429 257,568 154,312 — % 67 % Total residential construction 524,008 521,326 307,538 1 % 70 % Land development 180,270 185,200 103,960 (3 )% 73 % Consumer land or lots 184,217 173,305 133,409 6 % 38 % Unimproved land 90,498 81,064 62,002 12 % 46 % Developed lots for operative builders 61,276 41,840 27,310 46 % 124 % Commercial lots 98,403 99,418 61,289 (1 )% 61 % Other construction 833,218 762,970 604,326 9 % 38 % Total land, lot, and other construction 1,447,882 1,343,797 992,296 8 % 46 % Owner occupied 2,675,681 2,645,841 1,973,309 1 % 36 % Non-owner occupied 3,190,519 3,056,658 2,372,644 4 % 34 % Total commercial real estate 5,866,200 5,702,499 4,345,953 3 % 35 % Commercial and industrial 1,378,500 1,463,022 1,883,438 (6 )% (27 )% Agriculture 731,248 751,185 728,579 (3 )% — % 1st lien 1,466,279 1,393,267 1,130,339 5 % 30 % Junior lien 33,438 34,830 35,230 (4 )% (5 )% Total 1-4 family 1,499,717 1,428,097 1,165,569 5 % 29 % Multifamily residential 545,483 545,001 380,172 — % 43 % Home equity lines of credit 753,362 761,990 664,800 (1 )% 13 % Other consumer 207,827 207,513 191,152 — % 9 % Total consumer 961,189 969,503 855,952 (1 )% 12 % States and political subdivisions 659,742 615,251 546,086 7 % 21 % Other 168,334 153,147 183,077 10 % (8 )% Total loans receivable, including loans held for sale 13,782,303 13,492,828 11,388,660 2 % 21 % Less loans held for sale 1 (51,284 ) (60,797 ) (118,731 ) (16 )% (57 )% Total loans receivable $ 13,731,019 $ 13,432,031 $ 11,269,929 2 % 22 % ______________________________
1 Loans held for sale are primarily 1st lien 1-4 family loans.Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification
Non-performing Assets, by Loan TypeNon-
Accrual
LoansAccruing
Loans 90
Days
or More Past
DueOther real estate owned and foreclosed assets (Dollars in thousands) Mar 31,
2022Dec 31,
2021Mar 31,
2021Mar 31,
2022Mar 31,
2022Mar 31,
2022Custom and owner occupied construction $ 233 237 246 233 — — Land development 240 250 330 240 — — Consumer land or lots 160 309 325 160 — — Unimproved land 128 124 243 113 15 — Commercial lots — — 368 — — — Other construction 12,884 12,884 — 12,884 — — Total land, lot and other construction 13,412 13,567 1,266 13,397 15 — Owner occupied 3,508 3,918 5,272 3,508 — — Non-owner occupied 1,526 6,063 4,615 1,526 — — Total commercial real estate 5,034 9,981 9,887 5,034 — — Commercial and Industrial 4,252 3,066 6,100 3,366 886 — Agriculture 28,801 29,151 8,392 25,641 3,160 — 1st lien 2,015 2,870 4,303 1,996 19 — Junior lien 301 136 290 111 190 — Total 1-4 family 2,316 3,006 4,593 2,107 209 — Multifamily residential 6,469 6,548 — 6,469 — — Home equity lines of credit 1,416 1,563 3,614 1,321 95 — Other consumer 543 460 1,017 355 145 43 Total consumer 1,959 2,023 4,631 1,676 240 43 Other — 112 1,470 — — — Total $ 62,476 67,691 36,585 57,923 4,510 43 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,
2022Dec 31,
2021Mar 31,
2021Dec 31,
2021Mar 31,
2021Custom and owner occupied construction $ 703 $ 1,243 $ 963 (43 )% (27 )% Pre-sold and spec construction — 443 — (100 )% n/m Total residential construction 703 1,686 963 (58 )% (27 )% Land development 317 — — n/m n/m Consumer land or lots 28 149 215 (81 )% (87 )% Unimproved land — 305 334 (100 )% (100 )% Developed lots for operative builders 142 — — n/m n/m Commercial lots 54 — — n/m n/m Other construction — 30,788 1,520 (100 )% (100 )% Total land, lot and other construction 541 31,242 2,069 (98 )% (74 )% Owner occupied 3,778 1,739 1,784 117 % 112 % Non-owner occupied 266 1,558 2,407 (83 )% (89 )% Total commercial real estate 4,044 3,297 4,191 23 % (4 )% Commercial and industrial 3,275 4,732 2,063 (31 )% 59 % Agriculture 162 459 25,458 (65 )% (99 )% 1st lien 2,963 2,197 5,984 35 % (50 )% Junior lien 78 87 18 (10 )% 333 % Total 1-4 family 3,041 2,284 6,002 33 % (49 )% Home equity lines of credit 1,315 1,994 1,223 (34 )% 8 % Other consumer 1,097 1,681 519 (35 )% 111 % Total consumer 2,412 3,675 1,742 (34 )% 38 % States and political subdivisions 21 1,733 375 (99 )% (94 )% Other 1,881 1,458 1,753 29 % 7 % Total $ 16,080 $ 50,566 $ 44,616 (68 )% (64 )% ______________________________
n/m - not measurableGlacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan TypeCharge-Offs Recoveries (Dollars in thousands) Mar 31,
2022Dec 31,
2021Mar 31,
2021Mar 31,
2022Mar 31,
2022Pre-sold and spec construction (4 ) (15 ) (7 ) — 4 Land development (21 ) (233 ) (75 ) — 21 Consumer land or lots (10 ) (165 ) (141 ) — 10 Unimproved land — (241 ) (21 ) — — Total land, lot and other construction (31 ) (639 ) (237 ) — 31 Owner occupied (386 ) (423 ) (54 ) — 386 Non-owner occupied (2 ) (357 ) (505 ) — 2 Total commercial real estate (388 ) (780 ) (559 ) — 388 Commercial and industrial (449 ) 41 80 33 482 Agriculture (2 ) (20 ) (1 ) — 2 1st lien (9 ) (331 ) 5 — 9 Junior lien (78 ) (650 ) (47 ) — 78 Total 1-4 family (87 ) (981 ) (42 ) — 87 Multifamily residential — (40 ) — — — Home equity lines of credit (5 ) (621 ) 25 — 5 Other consumer 55 236 46 122 67 Total consumer 50 (385 ) 71 122 72 Other 1,761 5,148 2,981 2,540 779 Total $ 850 2,329 2,286 2,695 1,845
Visit our website at www.glacierbancorp.comCONTACT: Randall M. Chesler, CEO (406) 751-4722 Ron J. Copher, CFO (406) 751-7706