Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended June 30, 2021
07/22/2021 - 04:30 PM
2nd Quarter 2021 Highlights:
Net income of $77.6 million , an increase of $14.2 million , or 22 percent, over the prior year second quarter net income of $63.4 million . Diluted earnings per share of $0.81, an increase of 23 percent from the prior year second quarter diluted earnings per share of $0.66. Total assets crossed $20 billion during the current quarter ending at $20.488 billion at June 30, 2021. The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, increased $249 million , or 10 percent annualized, in the current quarter. Core deposits increased $669 million , or 17 percent annualized, during the current quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $12.1 million at June 30, 2021 decreased $32.5 million from the prior quarter and decreased $13.1 million from the prior year second quarter. An improved economic outlook drove a credit loss benefit of $5.7 million in the current quarter. The Company funded 1,947 new PPP loans for $67.6 million during the current quarter. The Company received $350 million in PPP loan forgiveness from the U.S. Small Business Administration (“SBA”) during the current quarter. Declared a quarterly dividend of $0.32 per share, an increase of $0.01 per share, or 3 percent, over the prior quarter regular dividend. The Company has declared 145 consecutive quarterly dividends and has increased the dividend 48 times. The Company announced the signing of definitive agreement to acquire Altabancorp, the parent company of Altabank, a community bank based in American Fork, Utah, with total assets of $3.522 billion . Altabank, was recently honored with the prestigious Utah Best of State Bank Award in the Community Banking category which marked its second consecutive year for receiving the award. This will be the largest Bank acquisition in the Company’s history and its 24th acquisition since 2000. First Half 2021 Highlights:
Net income of $158 million for the first half of 2021, an increase of $51.6 million , or 48 percent, over the prior year first half of 2020 net income of $107 million . Diluted earnings per share of $1.66, an increase of 47 percent from the prior year first six months diluted earnings per share of $1.13. The loan portfolio, excluding the PPP loans, increased $330 million , or 6 percent annualized, in the first half of 2021. Core deposits increased $1.975 billion , or 27 percent annualized, during the first six months of 2021. The Company funded 8,525 PPP loans in the amount of $555 million during the first half of 2021. The Company received $776 million in PPP loan forgiveness from the U.S. Small Business Administration (“SBA”) during the first half of 2021. Dividends declared in the first half of 2021 of $0.63 per share, an increase of $0.05 per share, or 9 percent, over the prior year dividends of $0.58 per share. Financial Summary
At or for the Three Months ended At or for the Six Months ended (Dollars in thousands, except per share and market data) Jun 30, Mar 31, Jun 30, Jun 30, Jun 30, Operating results Net income $ 77,627 80,802 63,444 158,429 106,783 Basic earnings per share $ 0.81 0.85 0.67 1.66 1.13 Diluted earnings per share $ 0.81 0.85 0.66 1.66 1.13 Dividends declared per share $ 0.32 0.31 0.29 0.63 0.58 Market value per share Closing $ 55.08 57.08 35.29 55.08 35.29 High $ 63.05 67.35 46.54 67.35 46.54 Low $ 52.99 44.55 30.30 44.55 26.66 Selected ratios and other data Number of common stock shares outstanding 95,507,234 95,501,819 95,409,061 95,507,234 95,409,061 Average outstanding shares - basic 95,505,877 95,465,801 95,405,493 95,485,839 94,346,582 Average outstanding shares - diluted 95,580,904 95,546,922 95,430,403 95,565,591 94,395,930 Return on average assets (annualized) 1.55 % 1.73 % 1.57 % 1.64 % 1.42 % Return on average equity (annualized) 13.25 % 14.12 % 11.68 % 13.68 % 10.15 % Efficiency ratio 49.92 % 46.75 % 47.54 % 48.31 % 50.86 % Dividend payout ratio 39.51 % 36.47 % 43.28 % 37.95 % 51.33 % Loan to deposit ratio 67.64 % 70.72 % 86.45 % 67.64 % 86.45 % Number of full time equivalent employees 2,987 2,994 2,954 2,987 2,954 Number of locations 194 193 192 194 192 Number of ATMs 250 250 251 250 251
KALISPELL, Mont., July 22, 2021 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $77.6 million for the current quarter, an increase of $14.2 million , or 22 percent, from the $63.4 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.81 per share, an increase of 23 percent from the prior year second quarter diluted earnings per share of $0.66. “We are pleased to see solid loan and deposit growth with an improving economic outlook,” said Randy Chesler, President and Chief Executive Officer. “The Glacier team has done an excellent job getting back to business and taking care of customers as our markets see increased activity with our summer season in full swing.”
Net income for the six months ended June 30, 2021 was $158.4 million , an increase of $51.6 million , or 48 percent, from the $106.8 million net income from the first six months in the prior year. Diluted earnings per share for the first half of the current year was $1.66 per share, an increase of 47 percent, from the diluted earnings per share of $1.13 for the same period last year.
In May 2021, the Company announced the signing of definitive agreement to acquire Altabancorp, the parent company of Altabank, a community bank based in American Fork, Utah (collectively, “Alta”). Alta provides banking services to individuals and businesses in Utah with twenty-five banking offices from Preston, Idaho to St. George, Utah. As of March 31, 2021, Alta had total assets of $3.522 billion , total loans of $1.797 billion and total deposits of $3.159 billion . The acquisition is subject to required regulatory approvals and other customary conditions of closing and is expected to be completed in the fourth quarter of 2021. Upon closing of the transaction, Alta will become the Company’s seventeenth Bank division.
Asset Summary
$ Change from (Dollars in thousands) Jun 30, Mar 31, Dec 31, Jun 30, Mar 31, Dec 31, Jun 30, Cash and cash equivalents $ 921,207 878,450 633,142 547,610 42,757 288,065 373,597 Debt securities, available-for-sale 6,147,143 5,853,315 5,337,814 3,533,950 293,828 809,329 2,613,193 Debt securities, held-to-maturity 1,024,730 588,751 189,836 203,275 435,979 834,894 821,455 Total debt securities 7,171,873 6,442,066 5,527,650 3,737,225 729,807 1,644,223 3,434,648 Loans receivable Residential real estate 734,838 745,097 802,508 903,198 (10,259 ) (67,670 ) (168,360 ) Commercial real estate 6,584,322 6,474,701 6,315,895 6,047,692 109,621 268,427 536,630 Other commercial 2,932,419 3,100,584 3,054,817 3,547,249 (168,165 ) (122,398 ) (614,830 ) Home equity 648,800 625,369 636,405 654,392 23,431 12,395 (5,592 ) Other consumer 337,669 324,178 313,071 300,847 13,491 24,598 36,822 Loans receivable 11,238,048 11,269,929 11,122,696 11,453,378 (31,881 ) 115,352 (215,330 ) Allowance for credit losses (151,448 ) (156,446 ) (158,243 ) (162,509 ) 4,998 6,795 11,061 Loans receivable, net 11,086,600 11,113,483 10,964,453 11,290,869 (26,883 ) 122,147 (204,269 ) Other assets 1,308,353 1,336,553 1,378,961 1,330,944 (28,200 ) (70,608 ) (22,591 ) Total assets $ 20,488,033 19,770,552 18,504,206 16,906,648 717,481 1,983,827 3,581,385
Total debt securities of $7.172 billion at June 30, 2021 increased $730 million , or 11 percent, during the current quarter and increased $3.435 billion , or 92 percent, from the prior year second quarter. The Company continues to purchase debt securities with excess liquidity from the increase in core deposits and SBA forgiveness of PPP loans. Debt securities represented 35 percent of total assets at June 30, 2021 compared to 30 percent of total assets at December 30, 2020 and 22 percent of total assets at June 30, 2020.
The loan portfolio of $11.238 billion at June 30, 2021 decreased $31.9 million , or 28 basis points, in the current quarter. Excluding the PPP loans, the loan portfolio increased $249 million , or 10 percent annualized, during the current quarter with the largest increase in other commercial loans which increased $113 million .
The loan portfolio decreased $215 million , or 2 percent, from the prior year second quarter. Excluding the PPP loans, the loan portfolio increased $517 million , or 5 percent, from the prior year second quarter with the largest increase in commercial real estate loans which increased $537 million , or 9 percent.
Credit Quality Summary
At or for the Six Months ended At or for the Three Months ended At or for the Year ended At or for the Six Months ended (Dollars in thousands) Jun 30, Mar 31, Dec 31, Jun 30, Allowance for credit losses Balance at beginning of period $ 158,243 158,243 124,490 124,490 Impact of adopting CECL — — 3,720 3,720 Acquisitions — — 49 49 Provision for credit losses (5,234 ) 489 37,637 36,296 Charge-offs (5,946 ) (4,246 ) (13,808 ) (5,235 ) Recoveries 4,385 1,960 6,155 3,189 Balance at end of period $ 151,448 156,446 158,243 162,509 Provision for credit losses Loan portfolio $ (5,234 ) 489 37,637 36,296 Unfunded loan commitments (371 ) (441 ) 2,128 (182 ) Total provision for credit losses $ (5,605 ) 48 39,765 36,114 Other real estate owned $ 771 2,965 1,744 4,743 Accruing loans 90 days or more past due 4,220 3,733 1,725 6,071 Non-accrual loans 48,050 29,887 31,964 35,157 Total non-performing assets $ 53,041 36,585 35,433 45,971 Non-performing assets as a percentage of subsidiary assets 0.26 % 0.19 % 0.19 % 0.27 % Allowance for credit losses as a percentage of non-performing loans 290 % 465 % 470 % 394 % Allowance for credit losses as a percentage of total loans 1.35 % 1.39 % 1.42 % 1.42 % Net charge-offs as a percentage of total loans 0.01 % 0.02 % 0.07 % 0.02 % Accruing loans 30-89 days past due $ 12,076 44,616 22,721 25,225 Accruing troubled debt restructurings $ 37,667 41,345 42,003 41,759 Non-accrual troubled debt restructurings $ 3,179 4,702 3,507 8,204 U.S. government guarantees included in non-performing assets $ 4,186 2,778 3,011 3,305
Non-performing assets of $53.0 million at June 30, 2021 increased $16.5 million , over the prior quarter and was primarily isolated to one credit relationship. Non-performing assets increased $7.1 million , or 15 percent, over the prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2021 was 0.26 percent. Excluding the government guaranteed PPP loans, the non-performing assets as a percentage of subsidiary assets at June 30, 2021 was 0.27 percent, an increase of 8 basis points from the prior quarter and 3 basis points decrease from the prior year second quarter.
Early stage delinquencies (accruing loans 30-89 days past due) of $12.1 million at June 30, 2021 decreased $32.5 million from the prior quarter with a large portion of the decrease primarily isolated to one credit relationship which moved to non-accrual at June 30, 2021. Early stage delinquencies decreased $13.1 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2021 was 0.11 percent, which was a decrease of 29 basis points from prior quarter and an 11 basis points decrease from prior year second quarter. Excluding PPP loans, early stage delinquencies as a percentage of loans at June 30, 2021 was 0.11 percent, which was a decrease of 32 basis points from prior quarter and a 14 basis points decrease from prior year second quarter.
The current quarter provision for credit loss benefit on loans of $5.7 million was a decrease of $6.2 million from the prior quarter provision for credit loss expense of $489 thousand and a $19.3 million decrease from the prior year second quarter provision for credit loss expense of $13.6 million . The higher levels of provision for credit losses in the prior year second quarter were driven by negative economic forecasts due to COVID-19. The lower levels in the current quarter related to improvement in the economic forecasts.
The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at June 30, 2021 was 1.35 percent which was a 4 basis points decrease compared to the prior quarter. Excluding the PPP loans, the ACL as percentage of loans was 1.43 percent compared to 1.51 percent in the prior quarter and 1.62 percent in the prior year second quarter.
Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio
(Dollars in thousands) Provision for Credit Losses Loans Net (Recoveries) ACL Accruing Non-Performing 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 % First quarter 2020 22,744 813 1.49 % 0.41 % 0.26 % Fourth quarter 2019 — 1,045 1.31 % 0.24 % 0.27 % Third quarter 2019 — 3,519 1.32 % 0.31 % 0.40 %
Net recoveries for the current quarter were $725 thousand compared to net charge-offs of $2.3 million for the prior quarter and net charge-offs $1.2 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.
In response to COVID-19, the Company modified 3,054 for $1.515 billion during the second quarter of 2020. These modifications were primarily short-term payment deferrals under six months. During the second half of 2020, the majority of the modified loan deferral periods expired, and the loans returned to regular payment status. As of June 30, 2021, $46.7 million of the modifications remain in the deferral period. In addition the state of Montana created the Montana Loan Deferment Program for only Montana-based businesses and was implemented only in the third quarter of 2020. Cares Act Funds were used to provide interest payments upfront and directly to lenders on behalf of participating borrowers to convert existing commercial loans to interest only status, resulting in the deferral of principal and interest for a period of six to twelve months. As of June 30, 2021, the Company had $105 million in eligible loans benefiting from this grant program compared to $272 million in the prior quarter.
PPP Loans
Three Months ended Six Months ended (Dollars in thousands) Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Jun 30, 2021 Jun 30, 2020 PPP interest income $ 10,328 13,523 7,304 23,851 7,304 Deferred compensation on originating PPP loans 1,522 5,213 8,412 6,735 8,412 Total PPP income impact $ 11,850 18,736 15,716 30,586 15,716
(Dollars in thousands) Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Jun 30, 2020 PPP Round 1 loans $ 176,498 489,208 909,173 1,426,746 PPP Round 2 loans 518,107 486,583 — — Total PPP loans 694,605 975,791 909,173 1,426,746 Net remaining fees - Round 1 1,313 6,244 17,605 40,590 Net remaining fees - Round 2 22,694 21,890 — — Total net remaining fees $ 24,007 28,134 17,605 40,590
The SBA Round 2 PPP program ended in early May after the available funds were fully drawn upon. During the current quarter, the Company originated $67.6 million of Round 2 PPP loans which generated $5.6 million of SBA deferred processing fees and $1.5 million of deferred compensation costs for total net deferred fees of $4.1 million . During the first half of 2021, the Company originated $555 million of Round 2 PPP loans which generated $33.2 million of SBA deferred processing fees and $6.7 million of deferred compensation costs for total net deferred fees of $26.5 million .
During the current year, the SBA processing fees received on Round 2 averaged 5.99 percent which compared to the average of 3.75 percent received on Round 1 in the prior year. The increase in the fees received was the result of an increase in the number of smaller loans which receive a higher percentage fee and the change in the SBA fee schedule for loans under $50 thousand .
The Company continued to submit applications to the SBA for Round 1 PPP loan forgiveness and also began submitting forgiveness applications for Round 2. As of June 30, 2021, the Company had $176 million or 12 percent of the $1.472 billion of Round 1 PPP loans originated in the prior year and had $518 million or 93 percent of the $555 million of Round 2 PPP loans originated in the current year.
The Company recognized $10.3 million of interest income (including deferred fees and costs) from the Round 1 and Round 2 PPP loans in the current quarter. The income recognized in the current quarter included $6.0 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 June 30, 2021 were $24.0 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) Jun 30, Mar 31, Dec 31, Jun 30, Mar 31, Dec 31, Jun 30, Deposits Non-interest bearing deposits $ 6,307,794 6,040,440 5,454,539 5,043,704 267,354 853,255 1,264,090 NOW and DDA accounts 4,151,264 4,035,455 3,698,559 3,113,863 115,809 452,705 1,037,401 Savings accounts 2,346,129 2,206,592 2,000,174 1,756,503 139,537 345,955 589,626 Money market deposit accounts 2,990,021 2,817,708 2,627,336 2,403,641 172,313 362,685 586,380 Certificate accounts 939,563 965,986 978,779 995,536 (26,423 ) (39,216 ) (55,973 ) Core deposits, total 16,734,771 16,066,181 14,759,387 13,313,247 668,590 1,975,384 3,421,524 Wholesale deposits 26,121 38,143 38,142 68,285 (12,022 ) (12,021 ) (42,164 ) Deposits, total 16,760,892 16,104,324 14,797,529 13,381,532 656,568 1,963,363 3,379,360 Repurchase agreements 995,201 996,878 1,004,583 881,227 (1,677 ) (9,382 ) 113,974 Federal Home Loan Bank advances — — — 37,963 — — (37,963 ) Other borrowed funds 33,556 33,452 33,068 32,546 104 488 1,010 Subordinated debentures 132,540 132,499 139,959 139,917 41 (7,419 ) (7,377 ) Other liabilities 211,889 208,014 222,026 229,748 3,875 (10,137 ) (17,859 ) Total liabilities $ 18,134,078 17,475,167 16,197,165 14,702,933 658,911 1,936,913 3,431,145
Core deposits of $16.735 billion as of June 30, 2021 increased $669 million , or 17 percent annualized, from the prior quarter and increased $3.422 billion , or 26 percent, from the prior year second quarter. Non-interest bearing deposits of $6.308 billion as of June 30, 2021 increased $267 million , or 4 percent, from the prior quarter and increased $1.264 billion , or 25 percent, from the prior year second quarter. The last fifteen months unprecedented increase in deposits resulted from a number of factors including the PPP loan proceeds deposited by customers, federal stimulus deposits and the increase in customer savings. Non-interest bearing deposits were 38 percent of total core deposits at June 30, 2021 compared to 37 percent of total core deposits at December 31, 2020 and 38 percent at June 30, 2020.
During the prior quarter, the Company paid off $7.5 million of subordinated debt. The low levels of borrowings, including wholesale deposits and Federal Home Loan Bank (“FHLB”) advances, reflected the significant increase in core deposits which funded the asset growth.
Stockholders’ Equity Summary
$ Change from (Dollars in thousands, except per share data) Jun 30, Mar 31, Dec 31, Jun 30, Mar 31, Dec 31, Jun 30, Common equity $ 2,263,513 2,215,465 2,163,951 2,073,806 48,048 99,562 189,707 Accumulated other comprehensive income 90,442 79,920 143,090 129,909 10,522 (52,648 ) (39,467 ) Total stockholders’ equity 2,353,955 2,295,385 2,307,041 2,203,715 58,570 46,914 150,240 Goodwill and core deposit intangible, net (564,546 ) (567,034 ) (569,522 ) (574,088 ) 2,488 4,976 9,542 Tangible stockholders’ equity $ 1,789,409 1,728,351 1,737,519 1,629,627 61,058 51,890 159,782
Stockholders’ equity to total assets 11.49 % 11.61 % 12.47 % 13.03 % Tangible stockholders’ equity to total tangible assets 8.98 % 9.00 % 9.69 % 9.98 % Book value per common share $ 24.65 24.03 24.18 23.10 0.62 0.47 1.55 Tangible book value per common share $ 18.74 18.10 18.21 17.08 0.64 0.53 1.66
Tangible stockholders’ equity of $1.789 billion at June 30, 2021 increased $61.1 million , or 4 percent, from the prior quarter and was the result of earnings retention coupled with an increase in other comprehensive income. Tangible stockholders’ equity of at June 30, 2021 increased $160 million , or 10 percent, from the prior year second quarter and was due to earnings retention that more than offset the decrease in other comprehensive income. Tangible book value per common share of $18.74 at the current quarter end increased $0.64 per share, or 4 percent, from the prior quarter and increased $1.66 per share, or 10 percent, from a year ago.
Cash Dividends
Operating Results for Three Months Ended June 30, 2021 Compared to March 31, 2021, and June 30, 2020
Income Summary
Three Months ended $ Change from (Dollars in thousands) Jun 30, Mar 31, Jun 30, Mar 31, Jun 30, Net interest income Interest income $ 159,956 161,552 155,404 (1,596 ) 4,552 Interest expense 4,487 4,740 7,185 (253 ) (2,698 ) Total net interest income 155,469 156,812 148,219 (1,343 ) 7,250 Non-interest income Service charges and other fees 13,795 12,792 11,366 1,003 2,429 Miscellaneous loan fees and charges 2,923 2,778 1,682 145 1,241 Gain on sale of loans 16,106 21,624 25,858 (5,518 ) (9,752 ) (Loss) gain on sale of investments (61 ) 284 128 (345 ) (189 ) Other income 2,759 2,643 2,190 116 569 Total non-interest income 35,522 40,121 41,224 (4,599 ) (5,702 ) Total income 190,991 196,933 189,443 (5,942 ) 1,548 Net interest margin (tax-equivalent) 3.44 % 3.74 % 4.12 %
Net Interest Income $155 million decreased $1.3 million , or 86 basis points, over the prior quarter and increased $7.3 million , or 5 percent, from the prior year second quarter. The current quarter interest income of $160 million decreased $1.6 million , or 1 percent, compared to the prior quarter due to a decrease in interest income from the PPP loans. The current quarter interest income increased $4.6 million , or 3 percent, over the prior year second quarter due to an increase in interest income from the PPP loans and debt securities. The interest income (which included deferred fees and deferred costs) from the PPP loans was $10.3 million in the current quarter and $13.5 million in the prior quarter and $7.3 million in the prior year second quarter. Excluding the PPP loans, net interest income was $150 million in the current quarter compared to $148 million in the prior quarter and $145 million in the prior year second quarter.
The current quarter interest expense of $4.5 million decreased $253 thousand , or 5 percent, over the prior quarter and decreased $2.7 million , or 38 percent, over the prior year second quarter primarily as result of a decrease in deposit rates along with a shift in funding liabilities to low cost deposits. During the current quarter, the total cost of funding (including non-interest bearing deposits) of 10 basis points declined 2 basis points from the prior quarter and declined 10 basis points from the prior year second quarter with both decreases driven by a decrease in rates in 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 3.44 percent compared to 3.74 percent in the prior quarter and 4.12 in the prior year second quarter. The core net interest margin, excluding 3 basis points of discount accretion, 1 basis point from non-accrual interest and 7 basis points increase from the PPP loans, was 3.33 percent compared to 3.56 in the prior quarter and 4.21 percent in the prior year second quarter. The core net interest margin decreased 23 basis points in the current quarter and decreased 88 basis points from the prior year second quarter due to a decrease in earning asset yields. Earning asset yields have decreased due to the combined impact of the significant increase in the debt securities and the decrease in yields on both loans and debt securities. Debt securities comprised 39.4 percent of the earning assets during the current quarter compared to 35.7 percent in the prior quarter and 24.6 percent in the prior year second quarter.
Non-interest Income $35.5 million which was a decrease of $4.6 million , or 11 percent, over the prior quarter and a decrease of $5.7 million , or 14 percent, over the same quarter last year. Service charges and other fees increased $1.0 million from the prior quarter and increased $2.4 million from the prior year second quarter as a result of increased customer accounts and transaction activity. Miscellaneous loan fees and charges of $2.9 million in the current quarter increased $1.2 million , or 74 percent, from the prior year second quarter and was primarily driven by increases in loan servicing income and credit card interchange fees due to increased activity.
Gain on the sale of loans of $16.1 million for the current quarter decreased $5.5 million , or 26 percent, compared to the prior quarter and decreased $9.8 million , or 38 percent, from the prior year second quarter. The current quarter mortgage activity was lower than prior periods, but still remained at historically elevated levels.
Non-interest Expense Summary
Three Months ended $ Change from (Dollars in thousands) Jun 30, Mar 31, Jun 30, Mar 31, Jun 30, Compensation and employee benefits $ 64,109 62,468 57,981 1,641 6,128 Occupancy and equipment 9,208 9,515 9,357 (307 ) (149 ) Advertising and promotions 2,906 2,371 2,138 535 768 Data processing 5,661 5,206 5,042 455 619 Other real estate owned 48 12 75 36 (27 ) Regulatory assessments and insurance 1,702 1,879 1,037 (177 ) 665 Core deposit intangibles amortization 2,488 2,488 2,613 — (125 ) Other expenses 13,960 12,646 16,521 1,314 (2,561 ) Total non-interest expense $ 100,082 96,585 94,764 3,497 5,318
Total non-interest expense of $100 million for the current quarter increased $3.5 million , or 4 percent, over the prior quarter and increased $5.3 million , or 6 percent, over the prior year second quarter. Excluding deferred compensation from originating PPP loans, total non-interest expense was $102 million for the current and prior quarter compared to $103 million in the prior year second quarter. Compensation and employee benefits increased $1.6 million , or 3 percent, from the prior quarter and increased $6.1 million from the prior year second quarter which was primarily driven by the decrease in deferred compensation on originating PPP loans. Deferred compensation from originating PPP loans was $1.5 million in the current quarter compared to $5.2 million in the prior quarter and $8.4 million in the prior year second quarter.
Regulatory assessment and insurance increased $665 thousand from the prior year second quarter primarily due to an accrual adjustment for the State of Montana regulatory semi-annual assessment which was waived for the first half of 2020. Other expenses of $14.0 million , increased $1.3 million , or 10 percent, from the prior quarter and decreased $2.6 million , or 16 percent, from the prior year second quarter with such changes driven by acquisition-related expenses. Current quarter other expenses included acquisition-related expenses of $1.1 million in the current quarter compared to $104 thousand in the prior quarter and $3.7 million in the prior year second quarter.
Federal and State Income Tax Expense $18.9 million , a decrease of $563 thousand , or 3 percent, compared to the prior quarter and an increase of $4.6 million , or 32 percent, from the prior year second quarter. The effective tax rate in the current quarter was 19.6 compared to 19.4 in the prior quarter and 18.4 percent in the prior year second quarter.
Efficiency Ratio
Operating Results for Six Months Ended June 30, 2021 Compared to June 30, 2020
Income Summary
Six Months ended (Dollars in thousands) Jun 30, Jun 30, $ Change % Change Net interest income Interest income $ 321,508 $ 298,269 $ 23,239 8 % Interest expense 9,227 15,681 (6,454 ) (41 )% Total net interest income 312,281 282,588 29,693 11 % Non-interest income Service charges and other fees 26,587 25,386 1,201 5 % Miscellaneous loan fees and charges 5,701 2,967 2,734 92 % Gain on sale of loans 37,730 37,720 10 — % Gain on sale of investments 223 991 (768 ) (77 )% Other income 5,402 7,432 (2,030 ) (27 )% Total non-interest income 75,643 74,496 1,147 2 % Total Income $ 387,924 $ 357,084 $ 30,840 9 % Net interest margin (tax-equivalent) 3.58 % 4.23 %
Net Interest Income $312 million for the first half of 2021 increased $29.7 million , or 11 percent, over the same period in 2020. Interest income of $322 million for the first six months of the current year increased $23.2 million , or 8 percent, from the prior year and was primarily attributable to a $19.3 million increase in income from commercial loans, including $16.5 million from the PPP loans. Additionally, interest income on debt securities increased $9.2 million , or 20 percent, over the prior year which resulted from the increased volume of debt securities. Interest expense of $9.2 million for the first half of 2021 decreased $6.5 million , or 41 percent over the prior year primarily as a result of a decrease in the cost of deposits. The total funding cost (including non-interest bearing deposits) for the first six months of 2021 was 11 basis points, which decreased 14 basis points compared to 25 basis points in first six months of 2020.
The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2021 was 3.58 percent, a 65 basis points decrease from the net interest margin of 4.23 percent for the same period in the prior year. The core net interest margin, excluding 4 basis points of discount accretion, 1 basis point of non-accrual interest and 10 basis points increase from the PPP loans, was 3.43 which was an 83 basis point decrease from the core margin of 4.26 percent in the prior year. Although the Company was successful in reducing the total cost of funding, it was not enough to outpace the decrease in yields on loans and debt securities driven by the current interest rate environment and the shift in the earning asset mix to lower yielding debt securities.
Non-interest Income $75.6 million for the first half of 2021 increased $1.1 million , or 2 percent, over the same period last year. Service charges and other fees of $26.6 million for the first six months of 2021 increased $1.2 million , or 5 percent, from prior year as a result of additional fees from increased customer accounts and transaction activity. Miscellaneous loan fees and charges increased $2.7 million , or 92 percent, driven by increases in loan servicing income and credit card interchange fees due to increased activity. Other income of $5.4 million decreased $2.0 million from the prior year and was primarily the result of a gain of $2.4 million on the sale of a former branch building in the first quarter of 2020.
Non-interest Expense Summary
Six Months ended (Dollars in thousands) Jun 30, Jun 30, $ Change % Change Compensation and employee benefits $ 126,577 $ 117,641 $ 8,936 8 % Occupancy and equipment 18,723 18,576 147 1 % Advertising and promotions 5,277 4,625 652 14 % Data processing 10,867 10,324 543 5 % Other real estate owned 60 187 (127 ) (68 )% Regulatory assessments and insurance 3,581 2,127 1,454 68 % Core deposit intangibles amortization 4,976 5,146 (170 ) (3 )% Other expenses 26,606 31,625 (5,019 ) (16 )% Total non-interest expense $ 196,667 $ 190,251 $ 6,416 3 %
Total non-interest expense of $197 million for the first half of 2021 increased $6.4 million , or 3 percent, over the prior year first half. Compensation and employee benefits for the first six months of 2021 increased $8.9 million , or 8 percent, from last year due to the increased number of employees from organic growth, increased real estate commissions, increased performance-related compensation and annual salary increases. Regulatory assessment and insurance for the first half of 2021 increased $1.5 million from the prior year same period primarily as a result of the State of Montana waiving the first semi-annual regulatory assessment of 2020 and Small Bank assessment credits applied by the FDIC in the first quarter of 2020. Other expenses of $26.6 million , decreased $5.0 million , or 16 percent, from the prior year, primarily from a decrease in acquisition-related expenses. Acquisition-related expenses were $1.1 million in the current year compared to $6.5 million in the prior year.
Provision for Credit Losses
The provision for credit loss benefit was $5.6 million for the first six months of 2021, including provision for credit loss benefit of $5.2 million on the loan portfolio and credit loss benefit of $371 thousand on unfunded loan commitments. The provision for credit loss benefit of $5.2 million on the loan portfolio in the current year decreased $41.5 million over the provision for credit loss expense of $36.3 million in the prior year which was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the current year were $1.6 million compared to $2.0 million during the prior year.
Federal and State Income Tax Expense $38.4 million in the first six months of 2021 increased $14.5 million , or 61 percent, over the prior year same period. The effective tax rate for 2021 was 19.5 percent compared to 18.3 percent in the prior year.
Efficiency Ratio
Forward-Looking Statements
the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio; changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability; changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties; legislative or regulatory changes, 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, both generally and as a result of the Company exceeding $10 billion in total consolidated assets; 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
About Glacier Bancorp, Inc.
CONTACT: Randall M. Chesler, CEO (406) 751-4722 Ron J. Copher, CFO (406) 751-7706
Glacier Bancorp, Inc. Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data) Jun 30, Mar 31, Dec 31, Jun 30, Assets Cash on hand and in banks $ 272,363 227,745 227,108 212,681 Interest bearing cash deposits 648,844 650,705 406,034 334,929 Cash and cash equivalents 921,207 878,450 633,142 547,610 Debt securities, available-for-sale 6,147,143 5,853,315 5,337,814 3,533,950 Debt securities, held-to-maturity 1,024,730 588,751 189,836 203,275 Total debt securities 7,171,873 6,442,066 5,527,650 3,737,225 Loans held for sale, at fair value 98,410 118,731 166,572 115,345 Loans receivable 11,238,048 11,269,929 11,122,696 11,453,378 Allowance for credit losses (151,448 ) (156,446 ) (158,243 ) (162,509 ) Loans receivable, net 11,086,600 11,113,483 10,964,453 11,290,869 Premises and equipment, net 315,573 322,354 325,335 326,005 Other real estate owned 771 2,965 1,744 4,743 Accrued interest receivable 70,452 79,331 75,497 77,363 Core deposit intangible, net 50,533 53,021 55,509 60,733 Goodwill 514,013 514,013 514,013 513,355 Non-marketable equity securities 10,019 10,022 10,023 11,592 Bank-owned life insurance 123,035 122,843 123,763 122,388 Other assets 125,547 113,273 106,505 99,420 Total assets $ 20,488,033 19,770,552 18,504,206 16,906,648 Liabilities Non-interest bearing deposits $ 6,307,794 6,040,440 5,454,539 5,043,704 Interest bearing deposits 10,453,098 10,063,884 9,342,990 8,337,828 Securities sold under agreements to repurchase 995,201 996,878 1,004,583 881,227 FHLB advances — — — 37,963 Other borrowed funds 33,556 33,452 33,068 32,546 Subordinated debentures 132,540 132,499 139,959 139,917 Accrued interest payable 2,433 2,590 3,305 4,211 Deferred tax liability 6,463 3,116 23,860 25,213 Other liabilities 202,993 202,308 194,861 200,324 Total liabilities 18,134,078 17,475,167 16,197,165 14,702,933 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 955 955 954 954 Paid-in capital 1,496,488 1,495,438 1,495,053 1,492,817 Retained earnings - substantially restricted 766,070 719,072 667,944 580,035 Accumulated other comprehensive income 90,442 79,920 143,090 129,909 Total stockholders’ equity 2,353,955 2,295,385 2,307,041 2,203,715 Total liabilities and stockholders’ equity $ 20,488,033 19,770,552 18,504,206 16,906,648
Glacier Bancorp, Inc. Unaudited Condensed Consolidated Statements of Operations
Three Months ended Six Months ended (Dollars in thousands, except per share data) Jun 30, Mar 31, Jun 30, Jun 30, Jun 30, Interest Income Debt securities $ 28,730 27,306 25,833 56,036 46,847 Residential real estate loans 9,541 10,146 12,098 19,687 23,624 Commercial loans 110,829 113,541 106,343 224,370 205,027 Consumer and other loans 10,856 10,559 11,130 21,415 22,771 Total interest income 159,956 161,552 155,404 321,508 298,269 Interest Expense Deposits 2,804 3,014 4,587 5,818 10,168 Securities sold under agreements to 651 689 908 1,340 1,897 Federal Home Loan Bank advances — — 268 — 614 Other borrowed funds 177 174 172 351 300 Subordinated debentures 855 863 1,250 1,718 2,702 Total interest expense 4,487 4,740 7,185 9,227 15,681 Net Interest Income 155,469 156,812 148,219 312,281 282,588 Provision for credit losses (5,653 ) 48 16,929 (5,605 ) 36,114 Net interest income after provision for credit losses 161,122 156,764 131,290 317,886 246,474 Non-Interest Income Service charges and other fees 13,795 12,792 11,366 26,587 25,386 Miscellaneous loan fees and charges 2,923 2,778 1,682 5,701 2,967 Gain on sale of loans 16,106 21,624 25,858 37,730 37,720 (Loss) gain on sale of debt securities (61 ) 284 128 223 991 Other income 2,759 2,643 2,190 5,402 7,432 Total non-interest income 35,522 40,121 41,224 75,643 74,496 Non-Interest Expense Compensation and employee benefits 64,109 62,468 57,981 126,577 117,641 Occupancy and equipment 9,208 9,515 9,357 18,723 18,576 Advertising and promotions 2,906 2,371 2,138 5,277 4,625 Data processing 5,661 5,206 5,042 10,867 10,324 Other real estate owned 48 12 75 60 187 Regulatory assessments and insurance 1,702 1,879 1,037 3,581 2,127 Core deposit intangibles amortization 2,488 2,488 2,613 4,976 5,146 Other expenses 13,960 12,646 16,521 26,606 31,625 Total non-interest expense 100,082 96,585 94,764 196,667 190,251 Income Before Income Taxes 96,562 100,300 77,750 196,862 130,719 Federal and state income tax expense 18,935 19,498 14,306 38,433 23,936 Net Income $ 77,627 80,802 63,444 158,429 106,783
Glacier Bancorp, Inc. Average Balance Sheets
Three Months ended June 30, 2021 March 31, 2021 (Dollars in thousands) Average Interest & Average Average Interest & Average Assets Residential real estate loans $ 825,467 $ 9,541 4.62 % $ 893,052 $ 10,146 4.54 % Commercial loans 1 9,520,603 112,226 4.73 % 9,412,281 114,928 4.95 % Consumer and other loans 964,415 10,856 4.51 % 949,736 10,559 4.51 % Total loans 2 11,310,485 132,623 4.70 % 11,255,069 135,633 4.89 % Tax-exempt debt securities 2 1,548,323 14,740 3.81 % 1,545,484 14,710 3.81 % Taxable debt securities 4 5,810,800 17,251 1.19 % 4,713,936 15,851 1.35 % Total earning assets 18,669,608 164,614 3.54 % 17,514,489 166,194 3.85 % Goodwill and intangibles 565,749 568,222 Non-earning assets 804,897 843,305 Total assets $ 20,040,254 $ 18,926,016 Liabilities Non-interest bearing deposits $ 6,100,872 $ — — % $ 5,591,531 $ — — % NOW and DDA accounts 4,073,819 600 0.06 % 3,830,856 570 0.06 % Savings accounts 2,295,334 141 0.02 % 2,092,517 138 0.03 % Money market deposit accounts 2,921,642 861 0.12 % 2,719,267 865 0.13 % Certificate accounts 955,694 1,181 0.50 % 971,584 1,422 0.59 % Total core deposits 16,347,361 2,783 0.07 % 15,205,755 2,995 0.08 % Wholesale deposits 5 34,301 21 0.24 % 38,076 19 0.20 % Repurchase agreements 974,744 651 0.27 % 1,001,394 689 0.28 % FHLB advances — — — % — — — % Subordinated debentures and other borrowed funds 166,002 1,032 2.49 % 165,830 1,037 2.54 % Total funding liabilities 17,522,408 4,487 0.10 % 16,411,055 4,740 0.12 % Other liabilities 168,613 193,858 Total liabilities 17,691,021 16,604,913 Stockholders’ Equity Common stock 955 955 Paid-in capital 1,495,886 1,495,138 Retained earnings 756,561 710,137 Accumulated other comprehensive income 95,831 114,873 Total stockholders’ equity 2,349,233 2,321,103 Total liabilities and stockholders’ equity $ 20,040,254 $ 18,926,016 Net interest income (tax-equivalent) $ 160,127 $ 161,454 Net interest spread (tax-equivalent) 3.44 % 3.73 % Net interest margin (tax-equivalent) 3.44 % 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 June 30, 2021 and March 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 $3.0 million and $3.0 million on tax-exempt debt securities income for the three months ended June 30, 2021 and March 31, 2021, respectively.4 Includes tax effect of $255 thousand and $255 thousand on federal income tax credits for the three months ended June 30, 2021 and March 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 June 30, 2021 June 30, 2020 (Dollars in thousands) Average Interest & Average Average Interest & Average Assets Residential real estate loans $ 825,467 $ 9,541 4.62 % $ 1,048,095 $ 12,098 4.62 % Commercial loans 1 9,520,603 112,226 4.73 % 9,235,881 107,632 4.69 % Consumer and other loans 964,415 10,856 4.51 % 957,798 11,130 4.67 % Total loans 2 11,310,485 132,623 4.70 % 11,241,774 130,860 4.68 % Tax-exempt debt securities 3 1,548,323 14,740 3.81 % 1,401,603 14,248 4.07 % Taxable debt securities 4 5,810,800 17,251 1.19 % 2,266,707 14,730 2.60 % Total earning assets 18,669,608 164,614 3.54 % 14,910,084 159,838 4.31 % Goodwill and intangibles 565,749 575,296 Non-earning assets 804,897 797,403 Total assets $ 20,040,254 $ 16,282,783 Liabilities Non-interest bearing deposits $ 6,100,872 $ — — % $ 4,733,485 $ — — % NOW and DDA accounts 4,073,819 600 0.06 % 3,018,706 687 0.09 % Savings accounts 2,295,334 141 0.02 % 1,687,448 175 0.04 % Money market deposit accounts 2,921,642 861 0.12 % 2,300,787 1,240 0.22 % Certificate accounts 955,694 1,181 0.50 % 1,013,188 2,408 0.96 % Total core deposits 16,347,361 2,783 0.07 % 12,753,614 4,510 0.14 % Wholesale deposits 5 34,301 21 0.24 % 68,503 77 0.46 % Repurchase agreements 974,744 651 0.27 % 740,748 908 0.49 % FHLB advances — — — % 182,061 268 0.58 % Subordinated debentures and other borrowed funds 166,002 1,032 2.49 % 172,996 1,422 3.31 % Total funding liabilities 17,522,408 4,487 0.10 % 13,917,922 7,185 0.21 % Other liabilities 168,613 180,935 Total liabilities 17,691,021 14,098,857 Stockholders’ Equity Common stock 955 954 Paid-in capital 1,495,886 1,492,230 Retained earnings 756,561 575,455 Accumulated other comprehensive income 95,831 115,287 Total stockholders’ equity 2,349,233 2,183,926 Total liabilities and stockholders’ equity $ 20,040,254 $ 16,282,783 Net interest income (tax-equivalent) $ 160,127 $ 152,653 Net interest spread (tax-equivalent) 3.44 % 4.10 % Net interest margin (tax-equivalent) 3.44 % 4.12 %
______________________________1 Includes tax effect of $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2021 and 2020, 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 $3.0 million and $2.9 million on tax-exempt debt securities income for the three months ended June 30, 2021 and 2020, respectively.4 Includes tax effect of $255 thousand and $266 thousand on federal income tax credits for the three months ended June 30, 2021 and 2020, 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)
Six Months ended June 30, 2021 June 30, 2020 (Dollars in thousands) Average Interest & Average Average Interest & Average Assets Residential real estate loans $ 859,073 $ 19,687 4.58 % $ 1,014,371 $ 23,624 4.66 % Commercial loans 1 9,466,763 227,154 4.84 % 8,522,681 207,588 4.90 % Consumer and other loans 957,116 21,415 4.51 % 942,361 22,771 4.86 % Total loans 2 11,282,952 268,256 4.79 % 10,479,413 253,983 4.87 % Tax-exempt debt securities 3 1,546,912 29,450 3.81 % 1,166,102 23,657 4.06 % Taxable debt securities 4 5,265,398 33,102 1.26 % 2,163,144 28,502 2.64 % Total earning assets 18,095,262 330,808 3.69 % 13,808,659 306,142 4.46 % Goodwill and intangibles 566,979 557,363 Non-earning assets 823,973 743,871 Total assets $ 19,486,214 $ 15,109,893 Liabilities Non-interest bearing deposits $ 5,847,608 $ — — % $ 4,203,222 $ — — % NOW and DDA accounts 3,953,009 1,170 0.06 % 2,846,928 1,602 0.11 % Savings accounts 2,194,485 279 0.03 % 1,603,129 414 0.05 % Money market deposit accounts 2,821,014 1,726 0.12 % 2,166,293 2,864 0.27 % Certificate accounts 963,595 2,603 0.54 % 989,548 5,003 1.02 % Total core deposits 15,779,711 5,778 0.07 % 11,809,120 9,883 0.17 % Wholesale deposits 5 36,178 40 0.22 % 62,806 285 0.91 % Repurchase agreements 987,995 1,340 0.27 % 641,785 1,897 0.59 % FHLB advances — — — % 145,366 614 0.84 % Subordinated debentures and other borrowed funds 165,917 2,069 2.51 % 171,481 3,002 3.52 % Total funding liabilities 16,969,801 9,227 0.11 % 12,830,558 15,681 0.25 % Other liabilities 181,166 164,148 Total liabilities 17,150,967 12,994,706 Stockholders’ Equity Common stock 955 944 Paid-in capital 1,495,514 1,454,617 Retained earnings 733,478 569,203 Accumulated other comprehensive income 105,300 90,423 Total stockholders’ equity 2,335,247 2,115,187 Total liabilities and stockholders’ equity $ 19,486,214 $ 15,109,893 Net interest income (tax-equivalent) $ 321,581 $ 290,461 Net interest spread (tax-equivalent) 3.58 % 4.21 % Net interest margin (tax-equivalent) 3.58 % 4.23 %
______________________________1 Includes tax effect of $2.8 million and $2.6 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2021 and 2020, 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 $6.0 million and $4.8 million on tax-exempt debt securities income for the six months ended June 30, 2021 and 2020, respectively.4 Includes tax effect of $510 thousand and $532 thousand on federal income tax credits for the six months ended June 30, 2021 and 2020, 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) Jun 30, Mar 31, Dec 31, Jun 30, Mar 31, Dec 31, Jun 30, Custom and owner occupied construction $ 158,405 $ 153,226 $ 157,529 $ 177,172 3 % 1 % (11 )% Pre-sold and spec construction 163,740 154,312 148,845 161,964 6 % 10 % 1 % Total residential construction 322,145 307,538 306,374 339,136 5 % 5 % (5 )% Land development 111,736 103,960 102,930 94,667 7 % 9 % 18 % Consumer land or lots 138,292 133,409 123,747 120,015 4 % 12 % 15 % Unimproved land 63,469 62,002 59,500 63,459 2 % 7 % — % Developed lots for operative builders 27,143 27,310 30,449 26,647 (1 )% (11 )% 2 % Commercial lots 64,664 61,289 60,499 60,563 6 % 7 % 7 % Other construction 554,548 604,326 555,375 477,922 (8 )% — % 16 % Total land, lot, and other construction 959,852 992,296 932,500 843,273 (3 )% 3 % 14 % Owner occupied 2,019,860 1,973,309 1,945,686 1,855,994 2 % 4 % 9 % Non-owner occupied 2,436,672 2,372,644 2,290,512 2,238,586 3 % 6 % 9 % Total commercial real estate 4,456,532 4,345,953 4,236,198 4,094,580 3 % 5 % 9 % Commercial and industrial 1,654,237 1,883,438 1,850,197 2,342,081 (12 )% (11 )% (29 )% Agriculture 746,678 728,579 721,490 714,227 2 % 3 % 5 % 1st lien 1,105,579 1,130,339 1,228,867 1,227,514 (2 )% (10 )% (10 )% Junior lien 38,029 35,230 41,641 47,121 8 % (9 )% (19 )% Total 1-4 family 1,143,608 1,165,569 1,270,508 1,274,635 (2 )% (10 )% (10 )% Multifamily residential 398,499 380,172 391,895 343,870 5 % 2 % 16 % Home equity lines of credit 693,135 664,800 657,626 655,492 4 % 5 % 6 % Other consumer 201,336 191,152 190,186 181,402 5 % 6 % 11 % Total consumer 894,471 855,952 847,812 836,894 5 % 6 % 7 % States and political subdivisions 631,199 546,086 575,647 581,673 16 % 10 % 9 % Other 129,237 183,077 156,647 198,354 (29 )% (17 )% (35 )% Total loans receivable, including 11,336,458 11,388,660 11,289,268 11,568,723 — % — % (2 )% Less loans held for sale 1 (98,410 ) (118,731 ) (166,572 ) (115,345 ) (17 )% (41 )% (15 )% Total loans receivable $ 11,238,048 $ 11,269,929 $ 11,122,696 $ 11,453,378 — % 1 % (2 )%
______________________________1 Loans held for sale are primarily 1st lien 1-4 family loans.
Glacier Bancorp, Inc. Credit Quality Summary by Regulatory Classification
Non- Accruing Other (Dollars in thousands) Jun 30, Mar 31, Dec 31, Jun 30, Jun 30, Jun 30, Jun 30, Custom and owner occupied construction $ 243 246 247 440 243 — — Land development 279 330 342 659 31 — 248 Consumer land or lots 190 325 201 427 190 — — Unimproved land 178 243 294 663 178 — — Commercial lots 368 368 368 529 — — 368 Total land, lot and other construction 1,015 1,266 1,205 2,278 399 — 616 Owner occupied 3,747 5,272 6,725 9,424 3,716 31 — Non-owner occupied 1,892 4,615 4,796 5,482 1,892 — — Total commercial real estate 5,639 9,887 11,521 14,906 5,608 31 — Commercial and Industrial 6,046 6,100 6,689 5,039 5,419 597 30 Agriculture 31,742 8,392 6,313 11,087 28,787 2,955 — 1st lien 4,186 4,303 5,353 7,634 3,754 432 — Junior lien 272 290 301 746 247 25 — Total 1-4 family 4,458 4,593 5,654 8,380 4,001 457 — Multifamily residential — — — 92 — — — Home equity lines of credit 2,653 3,614 2,939 3,048 2,529 36 88 Other consumer 542 1,017 572 412 406 99 37 Total consumer 3,195 4,631 3,511 3,460 2,935 135 125 Other 703 1,470 293 289 658 45 — Total $ 53,041 36,585 35,433 45,971 48,050 4,220 771
Glacier Bancorp, Inc. Credit Quality Summary by Regulatory Classification (continued)
Accruing 30-89 Days Delinquent Loans, by Loan Type % Change from (Dollars in thousands) Jun 30, Mar 31, Dec 31, Jun 30, Mar 31, Dec 31, Jun 30, Custom and owner occupied construction $ — $ 963 $ 788 $ — (100 )% (100 )% n/m Pre-sold and spec construction 70 — — — n/m n/m n/m Total residential construction 70 963 788 — (93 )% (91 )% n/m Land development — — 202 — n/m (100 )% n/m Consumer land or lots — 215 71 248 (100 )% (100 )% (100 )% Unimproved land 307 334 357 411 (8 )% (14 )% (25 )% Developed lots for operative builders — — 306 — n/m (100 )% n/m Commercial lots — — — 153 n/m n/m (100 )% Other construction — 1,520 — — (100 )% n/m n/m Total land, lot and other construction 307 2,069 936 812 (85 )% (67 )% (62 )% Owner occupied 2,243 1,784 3,432 1,512 26 % (35 )% 48 % Non-owner occupied 574 2,407 149 966 (76 )% 285 % (41 )% Total commercial real estate 2,817 4,191 3,581 2,478 (33 )% (21 )% 14 % Commercial and industrial 2,947 2,063 1,814 4,127 43 % 62 % (29 )% Agriculture 837 25,458 1,553 12,084 (97 )% (46 )% (93 )% 1st lien 736 5,984 6,677 656 (88 )% (89 )% 12 % Junior lien 106 18 55 160 489 % 93 % (34 )% Total 1-4 family 842 6,002 6,732 816 (86 )% (87 )% 3 % Home equity lines of credit 1,942 1,223 2,840 3,330 59 % (32 )% (42 )% Other consumer 919 519 1,054 739 77 % (13 )% 24 % Total consumer 2,861 1,742 3,894 4,069 64 % (27 )% (30 )% States and political subdivisions — 375 2,358 124 (100 )% (100 )% (100 )% Other 1,395 1,753 1,065 715 (20 )% 31 % 95 % Total $ 12,076 $ 44,616 $ 22,721 $ 25,225 (73 )% (47 )% (52 )%
______________________________
Glacier Bancorp, Inc. Credit Quality Summary by Regulatory Classification (continued)
Net Charge-Offs (Recoveries), Year-to-Date Charge-Offs Recoveries (Dollars in thousands) Jun 30, Mar 31, Dec 31, Jun 30, Jun 30, Jun 30, Custom and owner occupied construction $ — — (9 ) — — — Pre-sold and spec construction (8 ) (7 ) (24 ) (12 ) — 8 Total residential construction (8 ) (7 ) (33 ) (12 ) — 8 Land development (77 ) (75 ) (106 ) (50 ) — 77 Consumer land or lots (164 ) (141 ) (221 ) (17 ) 3 167 Unimproved land (21 ) (21 ) (489 ) (287 ) — 21 Commercial lots — — (55 ) (3 ) — — Total land, lot and other construction (262 ) (237 ) (871 ) (357 ) 3 265 Owner occupied (70 ) (54 ) (168 ) (49 ) 41 111 Non-owner occupied (503 ) (505 ) 3,030 115 — 503 Total commercial real estate (573 ) (559 ) 2,862 66 41 614 Commercial and industrial (218 ) 80 1,533 576 262 480 Agriculture (6 ) (1 ) 337 33 4 10 1st lien (237 ) 5 69 — 42 279 Junior lien (475 ) (47 ) (211 ) (129 ) — 475 Total 1-4 family (712 ) (42 ) (142 ) (129 ) 42 754 Multifamily residential (40 ) — (244 ) (43 ) — 40 Home equity lines of credit (23 ) 25 101 24 41 64 Other consumer 74 46 307 161 241 167 Total consumer 51 71 408 185 282 231 Other 3,329 2,981 3,803 1,727 5,312 1,983 Total $ 1,561 2,286 7,653 2,046 5,946 4,385
Visit our website at www.glacierbancorp.com
