Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2022

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,
2022
  Dec 31,
2021
  Mar 31,
2021
Operating 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,
2022
  Dec 31,
2021
  Mar 31,
2021
  Dec 31,
2021
  Mar 31,
2021
Cash 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
ended
  At or for the
Year ended
  At or for the
Three Months
ended
(Dollars in thousands) Mar 31,
2022
  Dec 31,
2021
  Mar 31,
2021
Allowance 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 Loans
  Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
  Non-Performing
Assets to
Total Subsidiary
Assets
First quarter 2022 $ 4,344     $ 850     1.28 %   0.12 %   0.24 %
Fourth quarter 2021   19,301       616     1.29 %   0.38 %   0.26 %
Third quarter 2021   2,313       152     1.36 %   0.23 %   0.24 %
Second quarter 2021   (5,723 )     (725 )   1.35 %   0.11 %   0.26 %
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,
2022
  Dec 31,
2021
    Mar 31,
2021
    Dec 31,
2021
  Mar 31,
2021
Deposits                      
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,
2022
  Dec 31,
2021
  Mar 31,
2021
  Dec 31,
2021
  Mar 31,
2021
Common 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, 2021

Income Summary

  Three Months ended   $ Change from
(Dollars in thousands) Mar 31,
2022
  Dec 31,
2021
  Mar 31,
2021
  Dec 31,
2021
  Mar 31,
2021
Net 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,
2022
  Dec 31,
2021
  Mar 31,
2021
  Dec 31,
2021
  Mar 31,
2021
Compensation 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,
2022
  Dec 31,
2021
  Mar 31,
2021
Assets          
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 Operations

  Three Months ended
(Dollars in thousands, except per share data) Mar 31,
2022
  Dec 31,
2021
  Mar 31,
2021 
Interest 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
repurchase
  393     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 Sheets

  Three Months ended
  March 31, 2022   December 31, 2021
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
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
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
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 Classification

  Loans Receivable, by Loan Type   % Change from
(Dollars in thousands) Mar 31,
2022
  Dec 31,
2021
  Mar 31,
2021
  Dec 31,
2021
  Mar 31,
2021
Custom 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 Type

  Non-
Accrual
Loans
    Accruing
Loans 90
Days
or More Past
Due
    Other real estate owned and foreclosed assets  
(Dollars in thousands) Mar 31,
2022
  Dec 31,
2021
    Mar 31,
2021
    Mar 31,
2022
    Mar 31,
2022
    Mar 31,
2022
 
Custom 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,
2022
  Dec 31,
2021
  Mar 31,
2021
  Dec 31,
2021
  Mar 31,
2021
Custom 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 measurable


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

  Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan Type
  Charge-Offs     Recoveries  
(Dollars in thousands) Mar 31,
2022
  Dec 31,
2021
  Mar 31,
2021
  Mar 31,
2022
    Mar 31,
2022
 
Pre-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.com


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

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