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Section 1: 8-K (FORM 8-K)

Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________
FORM 8-K
____________________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 18, 2018 

____________________________________________________________
GLACIER BANCORP, INC.
(Exact name of registrant as specified in its charter)
____________________________________________________________

MONTANA
000-18911
81-0519541
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

49 Commons Loop, Kalispell, Montana
59901
(Address of principal executive offices)
(Zip Code)

(406) 756-4200
Registrant’s telephone number, including area code

Not Applicable
(Former name or former address, if changed since last report)
____________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.






Item 2.02. Results of Operations and Financial Condition

On October 18, 2018, the Company issued a press release announcing its financial results for the quarter ended September 30, 2018. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein in its entirety by reference.

The information in this Item 2.02 and the Exhibit attached hereto is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such document or filing.

Item 9.01. Financial Statements and Exhibits

(d)
Exhibit 99.1 - Press Release dated October 18, 2018, announcing financial results for the quarter ended September 30, 2018.







SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:
October 18, 2018
GLACIER BANCORP, INC.
 
 
 
 
 
 
By:
/s/ Randall M. Chesler
 
 
 
Randall M. Chesler
 
 
 
President and Chief Executive Officer





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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


395398393_gbcilogostatesnewa02.jpg

NEWS RELEASE
October 18, 2018

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

GLACIER BANCORP, INC. ANNOUNCES
RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2018

3rd Quarter 2018 Highlights:
Net income of $49.3 million for the current quarter, an increase of $12.8 million, or 35 percent, over the prior year third quarter net income of $36.5 million. Pre-tax income of $60.1 million for the current quarter, an increase of $12.0 million, or 25 percent, over the prior year third quarter pre-tax income of $48.1 million.
Current quarter diluted earnings per share of $0.58, an increase of 12 percent from the prior quarter, and an increase of 23 percent from the prior year third quarter diluted earnings per share of $0.47.
Current quarter loan growth of $175 million, or 9 percent annualized.
Current quarter core deposits increased $199 million, or 9 percent annualized.
Net interest margin of 4.26 percent as a percentage of earning assets, on a tax equivalent basis, a 9 basis points increase over the prior quarter, and a 15 basis points increase over the prior year third quarter net interest margin of 4.11 percent.
Dividend declared of $0.26 per share. The dividend was the 134th consecutive quarterly dividend.
The Company successfully completed the core system conversion of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado.
Year-to-Date 2018 Highlights:
Net income of $132 million for the first nine months of 2018, an increase of $30.9 million, or 30 percent, over the first nine months of 2017 net income of $101 million. Pre-tax income of $161 million for the first nine months of 2018, an increase of $26.2 million, or 19 percent, over the first nine months of 2017 pre-tax income of $135 million.
Diluted earnings per share of $1.59, an increase of 21 percent from the prior year first nine months diluted earnings per share of $1.31.
Organic loan growth of $563 million, or 11 percent annualized, for the first nine months of the current year.
Net interest margin of 4.18 percent as a percentage of earning assets, on a tax equivalent basis, a 9 basis points increase over the 4.09 percent net interest margin in the first nine months of the prior year.

1



Dividends declared of $0.75 per share, an increase of $0.12 per share, or 19 percent, over the prior year first nine months regular quarterly dividends.
The Company completed the acquisition and core system conversion of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado, with total assets of $551 million.
The Company completed the acquisition and core system conversion of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank in Bozeman, Montana, with total assets of $1.110 billion.

Financial Highlights
 
At or for the Three Months ended
 
At or for the Nine Months Ended
(Dollars in thousands, except per share and market data)
Sep 30,
2018
 
Jun 30,
2018
 
Mar 31,
2018
 
Sep 30,
2017
 
Sep 30,
2018
 
Sep 30,
2017
Operating results
 
 
 
 
 
 
 
 
 
 
 
Net income
$
49,336

 
44,384

 
38,559

 
36,479

 
132,279

 
101,421

Basic earnings per share
$
0.58

 
0.53

 
0.48

 
0.47

 
1.59

 
1.31

Diluted earnings per share
$
0.58

 
0.52

 
0.48

 
0.47

 
1.59

 
1.31

Dividends declared per share 1
$
0.26

 
0.26

 
0.23

 
0.51

 
0.75

 
0.93

Market value per share
 
 
 
 
 
 
 
 
 
 
 
Closing
$
43.09

 
38.68

 
38.38

 
37.76

 
43.09

 
37.76

High
$
46.28

 
41.47

 
41.24

 
37.76

 
46.28

 
38.03

Low
$
38.37

 
35.77

 
36.72

 
31.50

 
35.77

 
31.50

Selected ratios and other data
 
 
 
 
 
 
 
 
 
 
 
Number of common stock shares outstanding
84,521,093

 
84,516,650

 
84,511,472

 
78,006,956

 
84,521,093

 
78,006,956

Average outstanding shares - basic
84,518,407

 
84,514,257

 
80,808,904

 
78,004,450

 
83,294,111

 
77,379,514

Average outstanding shares - diluted
84,593,122

 
84,559,268

 
80,887,135

 
78,065,942

 
83,362,323

 
77,442,944

Return on average assets (annualized)
1.66
%
 
1.53
%
 
1.50
%
 
1.46
%
 
1.57
%
 
1.40
%
Return on average equity (annualized)
13.10
%
 
12.07
%
 
11.90
%
 
11.87
%
 
12.38
%
 
11.49
%
Efficiency ratio
52.26
%
 
55.44
%
 
57.80
%
 
53.44
%
 
55.01
%
 
53.92
%
Dividend payout ratio 1
44.83
%
 
49.06
%
 
47.92
%
 
108.51
%
 
47.17
%
 
70.99
%
Loan to deposit ratio
85.13
%
 
84.92
%
 
81.83
%
 
84.43
%
 
85.13
%
 
84.43
%
Number of full time equivalent employees
2,572

 
2,605

 
2,545

 
2,250

 
2,572

 
2,250

Number of locations
164

 
167

 
166

 
145

 
164

 
145

Number of ATMs
215

 
221

 
223

 
200

 
215

 
200

______________________________
1 
Includes a special dividend declared of $0.30 per share for the three and nine months ended September 30, 2017.

KALISPELL, Mont., Oct 18, 2018 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $49.3 million for the current quarter, an increase of $12.8 million, or 35 percent, from the $36.5 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.58 per share, an increase of $0.11, or 23 percent, from the prior year third quarter diluted earnings per share of $0.47. Included in the current quarter was $1.3 million of acquisition-related expenses. “This was a very strong quarter which highlights the consistent strength of the Glacier team and business model. We saw solid, broad-based growth in quality loans and deposits across the franchise,” said Randy Chesler, President and Chief Executive Officer.

Net income for the nine months ended September 30, 2018 was $132 million, an increase of $30.9 million, or 30 percent, from the $101 million of net income for the first nine months of the prior year. Diluted earnings per share

2



for the first nine months of 2018 was $1.59 per share, an increase of $0.28, or 21 percent, from the diluted earnings per share of $1.31 for the same period in the prior year.

On February 28, 2018, the Company completed the acquisition of Inter-Mountain Bancorp, Inc., the holding company for First Security Bank, a community bank in Bozeman, Montana (collectively, “FSB”). On January 31, 2018, the Company completed the acquisition of Columbine Capital Corp., the holding company for Collegiate Peaks Bank, a community bank in Buena Vista, Colorado (collectively, “Collegiate”). The Company’s results of operations and financial condition include the acquisitions beginning on the acquisition dates and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:

 
FSB
 
Collegiate
 
 
(Dollars in thousands)
February 28,
2018
 
January 31,
2018
 
Total
Total assets
$
1,109,684

 
551,198

 
1,660,882

Debt securities
271,865

 
42,177

 
314,042

Loans receivable
627,767

 
354,252

 
982,019

Non-interest bearing deposits
301,468

 
170,022

 
471,490

Interest bearing deposits
576,118

 
267,149

 
843,267

Borrowings
36,880

 
12,509

 
49,389


Asset Summary
 
 
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands)
Sep 30,
2018
 
Jun 30,
2018
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2018
 
Dec 31,
2017
 
Sep 30,
2017
Cash and cash equivalents
$
307,104

 
368,132

 
200,004

 
220,210

 
(61,028
)
 
107,100

 
86,894

Debt securities, available-for-sale
2,103,619

 
2,177,352

 
1,778,243

 
1,886,517

 
(73,733
)
 
325,376

 
217,102

Debt securities, held-to-maturity
590,915

 
620,409

 
648,313

 
655,128

 
(29,494
)
 
(57,398
)
 
(64,213
)
Total debt securities
2,694,534

 
2,797,761

 
2,426,556

 
2,541,645

 
(103,227
)
 
267,978

 
152,889

Loans receivable
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
862,830

 
835,382

 
720,728

 
734,242

 
27,448

 
142,102

 
128,588

Commercial real estate
4,527,577

 
4,384,781

 
3,577,139

 
3,503,976

 
142,796

 
950,438

 
1,023,601

Other commercial
1,921,955

 
1,940,435

 
1,579,353

 
1,575,514

 
(18,480
)
 
342,602

 
346,441

Home equity
528,404

 
511,043

 
457,918

 
452,291

 
17,361

 
70,486

 
76,113

Other consumer
282,479

 
277,031

 
242,686

 
243,410

 
5,448

 
39,793

 
39,069

Loans receivable
8,123,245

 
7,948,672

 
6,577,824

 
6,509,433

 
174,573

 
1,545,421

 
1,613,812

Allowance for loan and lease losses
(132,535
)
 
(131,564
)
 
(129,568
)
 
(129,576
)
 
(971
)
 
(2,967
)
 
(2,959
)
Loans receivable, net
7,990,710

 
7,817,108

 
6,448,256

 
6,379,857

 
173,602

 
1,542,454

 
1,610,853

Other assets
916,754

 
914,643

 
631,533

 
656,890

 
2,111

 
285,221

 
259,864

Total assets
$
11,909,102

 
11,897,644

 
9,706,349

 
9,798,602

 
11,458

 
2,202,753

 
2,110,500


Total debt securities of $2.695 billion at September 30, 2018 decreased $103 million, or 4 percent, during the current quarter and increased $153 million, or 6 percent, from the prior year third quarter. Debt securities represented 23 percent of total assets at September 30, 2018 compared to 26 percent of total assets at September 30, 2017.


3



The loan portfolio of $8.123 billion increased $175 million, or 9 percent annualized, during the current quarter. The loan category with the largest increase was commercial real estate loans which increased $143 million, or 3 percent. Excluding the FSB and Collegiate acquisitions, the loan portfolio increased $632 million, or 10 percent, since September 30, 2017 and was primarily driven by growth in commercial real estate loans, which increased $406 million, or 12 percent.

Credit Quality Summary
 
At or for the Nine Months ended
 
At or for the Six Months ended
 
At or for the Year ended
 
At or for the Nine Months ended
(Dollars in thousands)
Sep 30,
2018
 
Jun 30,
2018
 
Dec 31,
2017
 
Sep 30,
2017
Allowance for loan and lease losses
 
 
 
 
 
 
 
Balance at beginning of period
$
129,568

 
129,568

 
129,572

 
129,572

Provision for loan losses
8,707

 
5,513

 
10,824

 
7,938

Charge-offs
(11,905
)
 
(7,611
)
 
(19,331
)
 
(14,801
)
Recoveries
6,165

 
4,094

 
8,503

 
6,867

Balance at end of period
$
132,535

 
131,564

 
129,568

 
129,576

Other real estate owned
$
12,399

 
13,616

 
14,269

 
14,359

Accruing loans 90 days or more past due
4,333

 
12,751

 
6,077

 
3,944

Non-accrual loans
55,373

 
58,170

 
44,833

 
46,770

Total non-performing assets
$
72,105

 
84,537

 
65,179

 
65,073

Non-performing assets as a percentage of subsidiary assets
0.61
%
 
0.71
%
 
0.68
%
 
0.67
%
Allowance for loan and lease losses as a percentage of non-performing loans
222
%
 
186
%
 
255
%
 
256
%
Allowance for loan and lease losses as a percentage of total loans
1.63
%
 
1.66
%
 
1.97
%
 
1.99
%
Net charge-offs as a percentage of total loans
0.07
%
 
0.04
%
 
0.17
%
 
0.12
%
Accruing loans 30-89 days past due
$
25,181

 
39,650

 
37,687

 
29,115

Accruing troubled debt restructurings
$
35,080

 
34,991

 
38,491

 
31,093

Non-accrual troubled debt restructurings
$
12,911

 
18,380

 
23,709

 
22,134

U.S. government guarantees included in non-performing assets
$
5,791

 
7,265

 
2,513

 
1,913


Non-performing assets at September 30, 2018 were $72.1 million, a decrease of $12.4 million, or 15 percent, from the prior quarter and an increase of $7.0 million, or 11 percent, from the prior year third quarter. Non-performing assets as a percentage of subsidiary assets at September 30, 2018 was 0.61 percent, a decrease of 10 basis points from the prior quarter, and a decrease of 6 basis points from the prior year third quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $25.2 million at September 30, 2018 decreased $14.5 million from the prior quarter and decreased $3.9 million from the prior year third quarter. Early stage delinquencies as a percentage of loans at September 30, 2018 was 0.31 percent which was a decrease of 19 basis points from the prior quarter and a 14 basis point decrease from prior year third quarter. The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at September 30, 2018 was 1.63 percent, which was a 3 basis points decrease compared to the prior quarter and a decrease of 36 basis points from a year ago. The decrease from the prior year third quarter was primarily driven by the addition of loans from new acquisitions, as they are added to the loan portfolio on a fair value basis with no allowance.


4



Credit Quality Trends and Provision for Loan Losses
(Dollars in thousands)
Provision
for Loan
Losses
 
Net
Charge-Offs
 
ALLL
as a Percent
of Loans
 
Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
 
Non-Performing
Assets to
Total Subsidiary
Assets
Third quarter 2018
$
3,194

 
$
2,223

 
1.63
%
 
0.31
%
 
0.61
%
Second quarter 2018
4,718

 
762

 
1.66
%
 
0.50
%
 
0.71
%
First quarter 2018
795

 
2,755

 
1.66
%
 
0.59
%
 
0.64
%
Fourth quarter 2017
2,886

 
2,894

 
1.97
%
 
0.57
%
 
0.68
%
Third quarter 2017
3,327

 
3,628

 
1.99
%
 
0.45
%
 
0.67
%
Second quarter 2017
3,013

 
2,362

 
2.05
%
 
0.49
%
 
0.70
%
First quarter 2017
1,598

 
1,944

 
2.20
%
 
0.67
%
 
0.75
%
Fourth quarter 2016
1,139

 
4,101

 
2.28
%
 
0.45
%
 
0.76
%

Net charge-offs for the current quarter were $2.2 million compared to $762 thousand for the prior quarter and $3.6 million from the same quarter last year. Current quarter provision for loan losses was $3.2 million, compared to $4.7 million in the prior quarter and $3.3 million in the prior year third quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of the loan loss provision. 

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)
Sep 30,
2018
 
Jun 30,
2018
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2018
 
Dec 31,
2017
 
Sep 30,
2017
Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
$
3,103,112

 
2,914,885

 
2,311,902

 
2,355,983

 
188,227

 
791,210

 
747,129

NOW and DDA accounts
2,346,050

 
2,354,214

 
1,695,246

 
1,733,353

 
(8,164
)
 
650,804

 
612,697

Savings accounts
1,345,163

 
1,330,637

 
1,082,604

 
1,081,056

 
14,526

 
262,559

 
264,107

Money market deposit accounts
1,722,975

 
1,723,681

 
1,512,693

 
1,564,738

 
(706
)
 
210,282

 
158,237

Certificate accounts
932,461

 
927,608

 
817,259

 
846,005

 
4,853

 
115,202

 
86,456

Core deposits, total
9,449,761

 
9,251,025

 
7,419,704

 
7,581,135

 
198,736

 
2,030,057

 
1,868,626

Wholesale deposits
151,421

 
172,550

 
160,043

 
186,019

 
(21,129
)
 
(8,622
)
 
(34,598
)
Deposits, total
9,601,182

 
9,423,575

 
7,579,747

 
7,767,154

 
177,607

 
2,021,435

 
1,834,028

Repurchase agreements
408,754

 
361,515

 
362,573

 
453,596

 
47,239

 
46,181

 
(44,842
)
Federal Home Loan Bank advances
155,328

 
395,037

 
353,995

 
153,685

 
(239,709
)
 
(198,667
)
 
1,643

Other borrowed funds
9,944

 
9,917

 
8,224

 
8,243

 
27

 
1,720

 
1,701

Subordinated debentures
134,055

 
134,058

 
126,135

 
126,099

 
(3
)
 
7,920

 
7,956

Other liabilities
107,227

 
99,550

 
76,618

 
83,624

 
7,677

 
30,609

 
23,603

Total liabilities
$
10,416,490

 
10,423,652

 
8,507,292

 
8,592,401

 
(7,162
)
 
1,909,198

 
1,824,089



5



Core deposits of $9.450 billion as of September 30, 2018 increased $199 million, or 2 percent, from the prior quarter. Excluding acquisitions, core deposits increased $554 million, or 7 percent, from the prior year third quarter. The Company benefited from the increase in non-interest bearing deposits which increased $188 million, or 6 percent from the prior quarter and organically increased $276 million, or 12 percent from the prior year third quarter.

Securities sold under agreements to repurchase (“repurchase agreements”) of $409 million at September 30, 2018 increased $47.2 million, or 13 percent, over the prior quarter and decreased $44.8 million, or 10 percent, over prior year third quarter. Federal Home Loan Bank (“FHLB”) advances of $155 million at September 30, 2018, decreased $240 million over the prior quarter and remained stable from the prior year third quarter. FHLB advances continue to fluctuate to supplement deposit growth and fund loan growth.

Stockholders’ Equity Summary
 
 
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands, except per share data)
Sep 30,
2018
 
Jun 30,
2018
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2018
 
Dec 31,
2017
 
Sep 30,
2017
Common equity
$
1,522,329

 
1,494,274

 
1,201,036

 
1,201,534

 
28,055

 
321,293

 
320,795

Accumulated other comprehensive (loss) income
(29,717
)
 
(20,282
)
 
(1,979
)
 
4,667

 
(9,435
)
 
(27,738
)
 
(34,384
)
Total stockholders’ equity
1,492,612

 
1,473,992

 
1,199,057

 
1,206,201

 
18,620

 
293,555

 
286,411

Goodwill and core deposit intangible, net
(340,508
)
 
(342,243
)
 
(191,995
)
 
(192,609
)
 
1,735

 
(148,513
)
 
(147,899
)
Tangible stockholders’ equity
$
1,152,104

 
1,131,749

 
1,007,062

 
1,013,592

 
20,355

 
145,042

 
138,512

Stockholders’ equity to total assets
12.53
%
 
12.39
%
 
12.35
%
 
12.31
%
 
 
 
 
 
 
Tangible stockholders’ equity to total tangible assets
9.96
%
 
9.79
%
 
10.58
%
 
10.55
%
 
 
 
 
 
 
Book value per common share
$
17.66

 
17.44

 
15.37

 
15.46

 
0.22

 
2.29

 
2.20

Tangible book value per common share
$
13.63

 
13.39

 
12.91

 
12.99

 
0.24

 
0.72

 
0.64


Tangible stockholders’ equity of $1.152 billion at September 30, 2018 increased $20 million compared to the prior quarter which was the result of earnings retention. Tangible stockholders’ equity increased $139 million over the prior year third quarter which was the result of earnings retention and $181 million and $69.8 million of Company stock issued for the acquisitions of FSB and Collegiate, respectively. These increases more than offset the increase in goodwill and core deposit intangibles associated with the acquisitions and the decrease in accumulated other comprehensive income. Tangible book value per common share at quarter end increased $0.24 per share from the prior quarter and increased $0.64 per share from a year ago.

Cash Dividends
On September 26, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend was payable October 18, 2018 to shareholders of record on October 9, 2018. The dividend was the 134th consecutive quarterly dividend. Regular quarterly dividends declared for the first nine months of 2018 were $0.75 per share, an increase of $0.12 per share, or 19 percent, over the same period last year. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.


6



Operating Results for Three Months Ended September 30, 2018 
Compared to June 30, 2018, March 31, 2018 and September 30, 2017

Income Summary
 
Three Months ended
 
$ Change from
(Dollars in thousands)
Sep 30,
2018
 
Jun 30,
2018
 
Mar 31,
2018
 
Sep 30,
2017
 
Jun 30,
2018
 
Mar 31,
2018
 
Sep 30,
2017
Net interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
122,905

 
117,715

 
103,066

 
96,464

 
5,190

 
19,839

 
26,441

Interest expense
9,160

 
9,161

 
7,774

 
7,652

 
(1
)
 
1,386

 
1,508

Total net interest income
113,745

 
108,554

 
95,292

 
88,812

 
5,191

 
18,453

 
24,933

Non-interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
Service charges and other fees
19,504

 
18,804

 
16,871

 
17,307

 
700

 
2,633

 
2,197

Miscellaneous loan fees and charges
1,807

 
2,243

 
1,477

 
1,211

 
(436
)
 
330

 
596

Gain on sale of loans
7,256

 
8,142

 
6,097

 
9,141

 
(886
)
 
1,159

 
(1,885
)
(Loss) gain on sale of investments
(367
)
 
(56
)
 
(333
)
 
77

 
(311
)
 
(34
)
 
(444
)
Other income
4,216

 
2,695

 
1,974

 
3,449

 
1,521

 
2,242

 
767

Total non-interest income
32,416

 
31,828

 
26,086

 
31,185

 
588

 
6,330

 
1,231

Total income
$
146,161

 
140,382

 
121,378

 
119,997

 
5,779

 
24,783

 
26,164

Net interest margin (tax-equivalent)
4.26
%
 
4.17
%
 
4.10
%
 
4.11
%
 
 
 
 
 
 

Net Interest Income
The current quarter interest income of $123 million increased $5.2 million, or 4 percent, from the prior quarter and increased $26.4 million, or 27 percent, over the prior year third quarter with both increases primarily attributable to the increase in interest income from commercial loans. Interest income on commercial loans increased $4.8 million, or 6 percent, from the prior quarter and increased $20.7 million, or 35 percent, from the prior year third quarter.

The current quarter interest expense of $9.2 million remained stable from the prior quarter and increased $1.5 million, or 20 percent, from the prior year third quarter. The total cost of funding (including non-interest bearing deposits) for the current quarter was 36 basis points compared to 36 basis points for the prior quarter and 35 basis points for the prior year third quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.26 percent compared to 4.17 percent in the prior quarter. The 9 basis points increase in the net interest margin was primarily the result of increased yields on the loan portfolio and a 2 basis points increase in loan discount accretion from the fair value adjustments of recently acquired banks. The current quarter net interest margin increased 15 basis points over the prior year third quarter net interest margin of 4.11 percent. Included in the current quarter margin was a 14 basis points decrease due to the reduction in the federal corporate income tax rate in 2018 by the Tax Cut and Jobs Act (“Tax Act”). The increase in the margin from the prior year third quarter resulted from the remix of earning assets to higher yielding loans, increased yields on the loan portfolio, and stable funding costs. “The Bank divisions have done well again in growing their non-interest bearing deposit balances,” said Ron Copher, Chief Financial Officer. “Growth in these balances enable the Company to limit rate increases on interest bearing balances, especially in higher interest rate environments.”

Non-interest Income
Non-interest income for the current quarter totaled $32.4 million, an increase of $588 thousand, or 2 percent, from the prior quarter and an increase of $1.2 million, or 4 percent, over the same quarter last year. Service charges and

7



other fees of $19.5 million for the current quarter, increased $700 thousand, or 4 percent, from the prior quarter and increased $2.2 million, or 13 percent, from the prior year third quarter with such increases primarily due to the increased number of accounts from organic growth and acquisitions. Miscellaneous loan fees and charges decreased $436 thousand, or 19 percent from prior quarter as a result of seasonality and increased $596 thousand, or 49 percent, from the prior year third quarter as a result of the recent acquisitions and increased loan growth. Gain on sale of loans decreased $886 thousand, or 11 percent, from the prior quarter as a result of seasonal activity and decreased $1.9 million, or 21 percent from the prior year third quarter as result of the decrease in purchase and refinance activity. Other income increased $1.5 million, or 56 percent, from the prior quarter and was primarily due to a $2.3 million gain on sale of a former branch building. Compared to the prior year third quarter, other income increased $767 thousand, or 22 percent, due to the sale of the former branch building, which was partially offset by the $1.3 million decrease in gain on sale of other real estate owned (“OREO”).

Non-interest Expense Summary
 
Three Months ended
 
$ Change from
(Dollars in thousands)
Sep 30,
2018
 
Jun 30,
2018
 
Mar 31,
2018
 
Sep 30,
2017
 
Jun 30,
2018
 
Mar 31,
2018
 
Sep 30,
2017
Compensation and employee benefits
$
49,927

 
49,023

 
45,721

 
41,297

 
904

 
4,206

 
8,630

Occupancy and equipment
7,914

 
7,662

 
7,274

 
6,500

 
252

 
640

 
1,414

Advertising and promotions
2,432

 
2,530

 
2,170

 
2,239

 
(98
)
 
262

 
193

Data processing
3,752

 
4,241

 
3,967

 
3,647

 
(489
)
 
(215
)
 
105

Other real estate owned
2,674

 
211

 
72

 
817

 
2,463

 
2,602

 
1,857

Regulatory assessments and insurance
1,277

 
1,329

 
1,206

 
1,214

 
(52
)
 
71

 
63

Core deposit intangibles amortization
1,735

 
1,748

 
1,056

 
640

 
(13
)
 
679

 
1,095

Other expenses
13,118

 
15,051

 
12,161

 
12,198

 
(1,933
)
 
957

 
920

Total non-interest expense
$
82,829

 
81,795

 
73,627

 
68,552

 
1,034

 
9,202

 
14,277


Total non-interest expense of $82.8 million for the current quarter increased $1.0 million, or 1 percent, over the prior quarter and increased $14.3 million, or 21 percent, over the prior year third quarter. Compensation and employee benefits increased by $904 thousand, or 2 percent, from the prior quarter. Compensation and employee benefits increased by $8.6 million, or 21 percent, from the prior year third quarter principally due to the increased number of employees from acquisitions. Occupancy and equipment expense increased $1.4 million, or 22 percent, over the prior year third quarter and was attributable to increased costs from acquisitions. OREO expenses increased $2.5 million from the prior quarter and increased $1.9 million from the prior year third quarter, due to a write down of $2.2 million on a single property. Other expenses decreased $1.9 million, or 13 percent, from the prior quarter and was primarily due to a decrease in acquisition-related expenses. Compared to the prior year third quarter, other expenses increased $920 thousand, or 8 percent. Acquisition-related expenses were $1.3 million during the current quarter compared to $2.9 million in the prior quarter and $245 thousand in the prior year third quarter.

Federal and State Income Tax Expense
Tax expense during the third quarter of 2018 was $10.8 million, which is a decrease of $837 thousand, or 7 percent, from the prior year third quarter and was primarily attributable to the decrease in the federal income tax rate driven by the Tax Act. The effective tax rate in the third quarter of 2018 was 18 percent compared to 24 percent in the prior year third quarter.


8



Efficiency Ratio
The current quarter efficiency ratio was 52.26 percent, a 318 basis points improvement from the prior quarter efficiency ratio of 55.44 percent. The improvement was the result of increases in net interest income and non-interest income, including the $2.3 million gain on the sale of the former branch building. In addition, there was a decrease in acquisition-related expenses and the Company continues to control its operating costs.

Operating Results for Nine Months Ended September 30, 2018
Compared to September 30, 2017

Income Summary
 
Nine Months Ended
 
 
 
 
(Dollars in thousands)
Sep 30,
2018
 
Sep 30,
2017
 
$ Change
 
% Change
Net interest income
 
 
 
 
 
 
 
Interest income
$
343,686

 
$
278,124

 
$
65,562

 
24
 %
Interest expense
26,095

 
22,792

 
3,303

 
14
 %
Total net interest income
317,591

 
255,332

 
62,259

 
24
 %
Non-interest income
 
 
 
 
 
 
 
Service charges and other fees
55,179

 
50,435

 
4,744

 
9
 %
Miscellaneous loan fees and charges
5,527

 
3,283

 
2,244

 
68
 %
Gain on sale of loans
21,495

 
23,031

 
(1,536
)
 
(7
)%
Loss on sale of investments
(756
)
 
(545
)
 
(211
)
 
39
 %
Other income
8,885

 
8,326

 
559

 
7
 %
Total non-interest income
90,330

 
84,530

 
5,800

 
7
 %
 
$
407,921

 
$
339,862

 
$
68,059

 
20
 %
Net interest margin (tax-equivalent)
4.18
%
 
4.09
%
 
 
 
 

Net Interest Income
Interest income for the first nine months of 2018 increased $65.6 million, or 24 percent, from the first nine months of 2017 and was principally due to a $55.9 million increase in interest income from commercial loans. Interest expense of $26.1 million for the first nine months of 2018 increased $3.3 million over the prior year same period. Interest expense on repurchase agreements, FHLB advances, and subordinated debt increased $3.4 million, or 37 percent, over the prior year and was primarily driven by the increase in market interest rates. The Company has maintained stable funding costs through its focus on growing non-interest bearing deposits and continued pricing discipline. The total funding cost was 36 basis points for the first nine months of 2018 and 2017.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first nine months of 2018 was 4.18 percent, a 9 basis points increase from the net interest margin of 4.09 percent for the first nine months of 2017. Included in the current year margin was a 14 basis points decrease compared to the prior year driven by the reduction in the federal corporate income tax rate. The increase in the margin from the prior year resulted from the remix of earning assets to higher yielding loans, increased yields on the loan portfolio, and stable funding costs.


9



Non-interest Income
Non-interest income of $90.3 million for the first nine months of 2018 increased $5.8 million, or 7 percent, over the same period last year. Service charges and other fees of $55.2 million for 2018 increased $4.7 million, or 9 percent, from the prior year as a result of an increased number of deposit accounts from organic growth and acquisitions. Miscellaneous loan fees and charges for the first nine months of 2018 increased $2.2 million, or 68 percent from the prior year as a result of the recent acquisitions and increased loan growth. Gain on sale of loans decreased $1.5 million, or 7 percent, from the prior year first nine months due to the decrease in purchase and refinance activity. Other income of $8.9 million, increased $559 thousand, or 7 percent, from the prior year first nine months with increases of $1.9 million from the sale of bank assets and a decrease of $2.5 million from the gain on sale of OREO.

Non-interest Expense Summary
 
Nine Months Ended
 
 
 
 
(Dollars in thousands)
Sep 30,
2018
 
Sep 30,
2017
 
$ Change
 
% Change
Compensation and employee benefits
$
144,671

 
$
120,041

 
$
24,630

 
21
%
Occupancy and equipment
22,850

 
19,706

 
3,144

 
16
%
Advertising and promotions
7,132

 
6,381

 
751

 
12
%
Data processing
11,960

 
10,180

 
1,780

 
17
%
Other real estate owned
2,957

 
1,532

 
1,425

 
93
%
Regulatory assessments and insurance
3,812

 
3,362

 
450

 
13
%
Core deposit intangibles amortization
4,539

 
1,880

 
2,659

 
141
%
Other expenses
40,330

 
34,123

 
6,207

 
18
%
Total non-interest expense
$
238,251

 
$
197,205

 
$
41,046

 
21
%

Total non-interest expense of $238.3 million for the first nine months of 2018 increased $41.0 million, or 21 percent, over prior year same period. Compensation and employee benefits for the first nine months of 2018 increased $24.6 million, or 21 percent, from the same period last year due to the increased number of employees from acquisitions. Occupancy and equipment expense for the first nine months of 2018 increased $3.1 million, or 16 percent from the prior year as a result of increased costs from acquisitions. Data processing expense for the current year increased $1.8 million, or 17 percent, from the prior year as a result of increased costs from the acquisitions and organic growth. Current year other expenses of $40.3 million increased $6.2 million, or 18 percent, from the prior year due to an increase in acquisition-related expenses. Acquisition-related expenses were $6.1 million during the first nine months of 2018 compared to $1.2 million in the prior year first nine months.

Provision for Loan Losses
The provision for loan losses was $8.7 million for the first nine months of 2018, an increase of $769 thousand from the same period in the prior year. Net charge-offs during the first nine months of 2018 were $5.7 million compared to $7.9 million during the same period in 2017.

Federal and State Income Tax Expense
Tax expense of $28.7 million in the first nine months of 2018 decreased $4.6 million, or 14 percent, over the prior year same period as a result of a decrease in the federal corporate income tax rate by the Tax Act. The effective tax rate in 2018 was 18 percent compared to 25 percent in the prior year.

Efficiency Ratio
The efficiency ratio of 55.01 percent for the first nine months of 2018 increased 109 basis points from the prior year first nine months efficiency ratio of 53.92. The increase included 140 basis points related to the decrease in the federal income tax rate and a 117 basis points increase in acquisition-related expenses.

10



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 management’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 words of similar meaning. 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 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 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, including 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, limit certain sources of revenue, or increase cost of operations;
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.

11



Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, October 19, 2018. The conference call will be accessible by telephone and through the internet. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 8090339. To participate on the webcast, log on to: https://edge.media-server.com/m6/p/rbdz6bvt. 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 8090339 by November 2, 2018.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is the parent company for Glacier Bank, Kalispell and its bank divisions: First Security Bank of Missoula; Valley Bank of Helena; Western Security Bank, Billings; First Bank of Montana, Lewistown; and First Security Bank, Bozeman, all located in Montana; as well as Mountain West Bank, Coeur d’Alene, operating in Idaho, Utah and Washington; First Bank, Powell, operating in Wyoming and Utah; Citizens Community Bank, Pocatello, operating in Idaho; Bank of the San Juans, Durango; and Collegiate Peaks Bank, Buena Vista both operating in Colorado; First State Bank, Wheatland, operating in Wyoming; North Cascades Bank, Chelan, operating in Washington; and The Foothills Bank, Yuma, operating in Arizona.


12



Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition

(Dollars in thousands, except per share data)
September 30,
2018
 
June 30,
2018
 
December 31,
2017
 
September 30,
2017
Assets
 
 
 
 
 
 
 
Cash on hand and in banks
$
171,394

 
174,239

 
139,948

 
136,822

Federal funds sold

 

 

 
210

Interest bearing cash deposits
135,710

 
193,893

 
60,056

 
83,178

Cash and cash equivalents
307,104

 
368,132

 
200,004

 
220,210

Debt securities, available-for-sale
2,103,619

 
2,177,352

 
1,778,243

 
1,886,517

Debt securities, held-to-maturity
590,915

 
620,409

 
648,313

 
655,128

Total debt securities
2,694,534

 
2,797,761

 
2,426,556

 
2,541,645

Loans held for sale, at fair value
50,649

 
53,788

 
38,833

 
48,709

Loans receivable
8,123,245

 
7,948,672

 
6,577,824

 
6,509,433

Allowance for loan and lease losses
(132,535
)
 
(131,564
)
 
(129,568
)
 
(129,576
)
Loans receivable, net
7,990,710

 
7,817,108

 
6,448,256

 
6,379,857

Premises and equipment, net
239,006

 
240,373

 
177,348

 
178,672

Other real estate owned
12,399

 
13,616

 
14,269

 
14,359

Accrued interest receivable
62,248

 
55,973

 
44,462

 
50,492

Deferred tax asset
37,264

 
34,211

 
38,344

 
58,916

Core deposit intangible, net
50,973

 
52,708

 
14,184

 
14,798

Goodwill
289,535

 
289,535

 
177,811

 
177,811

Non-marketable equity securities
16,502

 
26,107

 
29,884

 
21,890

Bank-owned life insurance
81,850

 
81,379

 
59,351

 
58,982

Other assets
76,328

 
66,953

 
37,047

 
32,261

Total assets
$
11,909,102

 
11,897,644

 
9,706,349

 
9,798,602

Liabilities
 
 
 
 
 
 
 
Non-interest bearing deposits
$
3,103,112

 
2,914,885

 
2,311,902

 
2,355,983

Interest bearing deposits
6,498,070

 
6,508,690

 
5,267,845

 
5,411,171

Securities sold under agreements to repurchase
408,754

 
361,515

 
362,573

 
453,596

FHLB advances
155,328

 
395,037

 
353,995

 
153,685

Other borrowed funds
9,944

 
9,917

 
8,224

 
8,243

Subordinated debentures
134,055

 
134,058

 
126,135

 
126,099

Accrued interest payable
4,065

 
3,952

 
3,450

 
3,154

Other liabilities
103,162

 
95,598

 
73,168

 
80,470

Total liabilities
10,416,490

 
10,423,652

 
8,507,292

 
8,592,401

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
845

 
845

 
780

 
780

Paid-in capital
1,050,463

 
1,049,724

 
797,997

 
797,381

Retained earnings - substantially restricted
471,021

 
443,705

 
402,259

 
403,373

Accumulated other comprehensive (loss) income
(29,717
)
 
(20,282
)
 
(1,979
)
 
4,667

Total stockholders’ equity
1,492,612

 
1,473,992

 
1,199,057

 
1,206,201

Total liabilities and stockholders’ equity
$
11,909,102

 
11,897,644

 
9,706,349

 
9,798,602



13



Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

 
Three Months ended
 
Nine Months Ended
(Dollars in thousands, except per share data)
September 30,
2018
 
June 30,
2018
 
September 30,
2017
 
September 30,
2018
 
September 30,
2017
Interest Income
 
 
 
 
 
 
 
 
 
Debt securities
$
21,971

 
22,370

 
19,987

 
64,483

 
63,305

Residential real estate loans
10,356

 
10,149

 
8,326

 
29,290

 
24,594

Commercial loans
80,587

 
75,824

 
59,875

 
221,926

 
166,027

Consumer and other loans
9,991

 
9,372

 
8,276

 
27,987

 
24,198

Total interest income
122,905

 
117,715

 
96,464

 
343,686

 
278,124

Interest Expense
 
 
 
 
 
 
 
 
 
Deposits
4,837

 
4,617

 
4,564

 
13,370

 
13,505

Securities sold under agreements to repurchase
570

 
486

 
537

 
1,541

 
1,362

Federal Home Loan Bank advances
2,132

 
2,513

 
1,398

 
6,734

 
4,642

Other borrowed funds
63

 
26

 
21

 
105

 
55

Subordinated debentures
1,558

 
1,519

 
1,132

 
4,345

 
3,228

Total interest expense
9,160

 
9,161

 
7,652

 
26,095

 
22,792

Net Interest Income
113,745

 
108,554

 
88,812

 
317,591

 
255,332

Provision for loan losses
3,194

 
4,718

 
3,327

 
8,707

 
7,938

Net interest income after provision for loan losses
110,551

 
103,836

 
85,485

 
308,884

 
247,394

Non-Interest Income
 
 
 
 
 
 
 
 
 
Service charges and other fees
19,504

 
18,804

 
17,307

 
55,179

 
50,435

Miscellaneous loan fees and charges
1,807

 
2,243

 
1,211

 
5,527

 
3,283

Gain on sale of loans
7,256

 
8,142

 
9,141

 
21,495

 
23,031

(Loss) gain on sale of debt securities
(367
)
 
(56
)
 
77

 
(756
)
 
(545
)
Other income
4,216

 
2,695

 
3,449

 
8,885

 
8,326

Total non-interest income
32,416

 
31,828

 
31,185

 
90,330

 
84,530

Non-Interest Expense
 
 
 
 
 
 
 
 
 
Compensation and employee benefits
49,927

 
49,023

 
41,297

 
144,671

 
120,041

Occupancy and equipment
7,914

 
7,662

 
6,500

 
22,850

 
19,706

Advertising and promotions
2,432

 
2,530

 
2,239

 
7,132

 
6,381

Data processing
3,752

 
4,241

 
3,647

 
11,960

 
10,180

Other real estate owned
2,674

 
211

 
817

 
2,957

 
1,532

Regulatory assessments and insurance
1,277

 
1,329

 
1,214

 
3,812

 
3,362

Core deposit intangibles amortization
1,735

 
1,748

 
640

 
4,539

 
1,880

Other expenses
13,118

 
15,051

 
12,198

 
40,330

 
34,123

Total non-interest expense
82,829

 
81,795

 
68,552

 
238,251

 
197,205

Income Before Income Taxes
60,138

 
53,869

 
48,118

 
160,963

 
134,719

Federal and state income tax expense
10,802

 
9,485

 
11,639

 
28,684

 
33,298

Net Income
$
49,336

 
44,384

 
36,479

 
132,279

 
101,421


14



Glacier Bancorp, Inc.
Average Balance Sheets

 
Three Months ended
 
September 30, 2018
 
September 30, 2017
(Dollars in thousands)
Average
Balance
 
Interest &
Dividends
 
Average
Yield/
Rate
 
Average
Balance
 
Interest &
Dividends
 
Average
Yield/
Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
Residential real estate loans
$
893,972

 
$
10,356

 
4.63
%
 
$
771,342

 
$
8,326

 
4.32
%
Commercial loans 1
6,361,742

 
81,636

 
5.09
%
 
4,968,989

 
61,560

 
4.92
%
Consumer and other loans
796,558

 
9,991

 
4.98
%
 
688,294

 
8,276

 
4.77
%
Total loans 2
8,052,272

 
101,983

 
5.02
%
 
6,428,625

 
78,162

 
4.82
%
Tax-exempt debt securities 3
1,074,266

 
12,389

 
4.61
%
 
1,106,288

 
15,678

 
5.67
%
Taxable debt securities 4
1,838,949

 
12,425

 
2.70
%
 
1,757,102

 
9,961

 
2.27
%
Total earning assets
10,965,487

 
126,797

 
4.59
%
 
9,292,015

 
103,801

 
4.43
%
Goodwill and intangibles
341,354

 
 
 
 
 
192,937

 
 
 
 
Non-earning assets
476,135

 
 
 
 
 
411,248

 
 
 
 
Total assets
$
11,782,976

 
 
 
 
 
$
9,896,200

 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
$
2,988,562

 
$

 
%
 
$
2,274,387

 
$

 
%
NOW and DDA accounts
2,304,338

 
997

 
0.17
%
 
1,720,374

 
465

 
0.11
%
Savings accounts
1,340,003

 
219

 
0.06
%
 
1,071,674

 
160

 
0.06
%
Money market deposit accounts
1,720,845

 
881

 
0.20
%
 
1,596,170

 
624

 
0.16
%
Certificate accounts
942,417

 
1,728

 
0.73
%
 
866,094

 
1,275

 
0.58
%
Total core deposits
9,296,165

 
3,825

 
0.16
%
 
7,528,699

 
2,524

 
0.13
%
Wholesale deposits 5
166,009

 
1,012

 
2.42
%
 
297,768

 
2,040

 
2.72
%
FHLB advances
209,248

 
2,132

 
3.99
%
 
197,458

 
1,398

 
2.77
%
Repurchase agreements and other borrowed funds
534,384

 
2,191

 
1.63
%
 
562,169

 
1,690

 
1.19
%
Total funding liabilities
10,205,806

 
9,160

 
0.36
%
 
8,586,094

 
7,652

 
0.35
%
Other liabilities
82,621

 
 
 
 
 
89,898

 
 
 
 
Total liabilities
10,288,427

 
 
 
 
 
8,675,992

 
 
 
 
Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
Common stock
845

 
 
 
 
 
780

 
 
 
 
Paid-in capital
1,050,081

 
 
 
 
 
797,011

 
 
 
 
Retained earnings
467,671

 
 
 
 
 
418,034

 
 
 
 
Accumulated other comprehensive (loss) income
(24,048
)
 
 
 
 
 
4,383

 
 
 
 
Total stockholders’ equity
1,494,549

 
 
 
 
 
1,220,208

 
 
 
 
Total liabilities and stockholders’ equity
$
11,782,976

 
 
 
 
 
$
9,896,200

 
 
 
 
Net interest income (tax-equivalent)
 
 
$
117,637

 
 
 
 
 
$
96,149

 
 
Net interest spread (tax-equivalent)
 
 
 
 
4.23
%
 
 
 
 
 
4.08
%
Net interest margin (tax-equivalent)
 
 
 
 
4.26
%
 
 
 
 
 
4.11
%
______________________________
1 
Includes tax effect of $1.0 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended September 30, 2018 and 2017, respectively.
2 
Total loans are gross of the allowance for loan and lease 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 $2.5 million and $5.3 million on tax-exempt debt securities income for the three months ended September 30, 2018 and 2017, respectively.
4 
Includes tax effect of $304 thousand on federal income tax credits for the three months ended September 30, 2018 and 2017.
5 
Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

15



Glacier Bancorp, Inc.
Average Balance Sheets (continued)

 
Nine Months Ended
 
September 30, 2018
 
September 30, 2017
(Dollars in thousands)
Average
Balance
 
Interest &
Dividends
 
Average
Yield/
Rate
 
Average
Balance