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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): January 24, 2019 

____________________________________________________________
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 January 24, 2019, the Company issued a press release announcing its financial results for the quarter ended December 31, 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 January 24, 2019, announcing financial results for the quarter ended December 31, 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:
January 24, 2019
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


396484474_gbcilogostatesnewa02.jpg

NEWS RELEASE
January 24, 2019

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 DECEMBER 31, 2018

4th Quarter 2018 Highlights:
Net income of $49.6 million for the current quarter, an increase of $14.9 million, or 43 percent, over the prior year fourth quarter net income of $34.7 million, excluding the impact of the revaluation of the net deferred tax asset in prior year. In prior year fourth quarter, the Company recognized a one-time tax expense of $19.7 million from the revaluation of the net deferred tax asset as a result of the Tax Cuts and Jobs Act (“Tax Act”). The Company believes that the financial results are more comparable excluding the impact of the revaluation of the net deferred tax asset, so we have included a Non-GAAP Financial Measures section within the earnings release that shows certain key business measures without the impact of the one-time tax adjustments.
Pre-tax income of $61.2 million for the current quarter, an increase of $14.9 million, or 32 percent, over the prior year fourth quarter pre-tax income of $46.3 million.
Current quarter diluted earnings per share of $0.59, an increase of 2 percent from the prior quarter, and an increase of 34 percent from the prior year fourth quarter diluted earnings per share of $0.44, excluding the revaluation of the net deferred tax asset.
Current quarter loan growth of $164 million, or 8 percent annualized.
Net interest margin of 4.30 percent as a percentage of earning assets, on a tax equivalent basis, a 4 basis points increase over the prior quarter, and a 7 basis points increase over the prior year fourth quarter net interest margin of 4.23 percent.
Declared a special dividend of $0.30 per share. This was the 15th special dividend the Company has declared.
Declared and paid a regular quarterly dividend of $0.26 per share. The dividend was the 135th consecutive quarterly dividend declared by the Company.
On January 16, 2019, the Company announced the signing of a definitive agreement to acquire FNB Bancorp, the bank holding company for The First National Bank of Layton, a community bank based in Layton, Utah, with total assets of $326 million.


1



Year 2018 Highlights:
Net income of $182 million for 2018, an increase of $45.8 million, or 34 percent, over the prior year net income of $136 million excluding the revaluation of the net deferred tax asset.
Pre-tax income of $222 million for the current year, an increase of $41.2 million, or 23 percent, over the prior year.
Diluted earnings per share of $2.17, an increase of 24 percent from the prior year diluted earnings per share of $1.75, excluding the revaluation of the net deferred tax asset.
Total loan growth of $1.710 billion, or 26 percent, for the current year. Organic loan growth of $728 million, or 11 percent, for the current year.
Total core deposit growth of $1.905 billion, or 26 percent, for the current year. Organic core deposit growth of $195 million, or 3 percent, for the current year.
Net interest margin of 4.21 percent as a percentage of earning assets, on a tax equivalent basis, a 9 basis points increase over the 4.12 percent net interest margin in the prior year.
Dividends declared of $1.31 per share, an increase of $0.17 per share, or 15 percent, over the prior year.
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.

Non-GAAP Financial Measures - Tax Cuts and Jobs Act
In addition to the results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), this press release contains certain non-GAAP financial measures. The Company believes that providing these non-GAAP financial measures provides investors with information useful in understanding the Company's financial performance, performance trends, and financial position. While the Company uses these non-GAAP measures in its analysis of the Company's performance, this information should not be considered an alternative to measurements required by GAAP.

The following table provides a reconciliation of certain GAAP financial measures to non-GAAP financial measures. The reconciling item between the GAAP and non-GAAP financial measures was the prior year fourth quarter one-time net tax expense of $19.7 million. The one-time net tax expense was driven by the Tax Act and the change in the federal marginal rate of 35 percent to 21 percent effective January 1, 2018, which resulted in this revaluation of its deferred tax assets and deferred tax liabilities (“net deferred tax asset”) as of December 31, 2017. The Company believes that the financial results are more comparable excluding the impact of the revaluation of the net deferred tax asset.

2




 
Three Months ended
 
Year ended
(Dollars in thousands, except per share data)
Dec 31,
2018
 
Sep 30,
2018
 
Jun 30,
2018
 
Mar 31,
2018
 
Dec 31,
2017
 
Dec 31,
2018
 
Dec 31,
2017
Net income (GAAP)
$
49,599

 
49,336

 
44,384

 
38,559

 
14,956

 
181,878

 
116,377

Tax Act adjustment (GAAP)

 

 

 

 
19,699

 

 
19,699

Net income (non-GAAP)
$
49,599

 
49,336

 
44,384

 
38,559

 
34,655

 
181,878

 
136,076

Basic earnings per share (GAAP)
$
0.59

 
0.58

 
0.53

 
0.48

 
0.19

 
2.18

 
1.50

Tax Act adjustment (GAAP)

 

 

 

 
0.25

 

 
0.25

Basic earnings per share (non-GAAP)
$
0.59

 
0.58

 
0.53

 
0.48

 
0.44

 
2.18

 
1.75

Diluted earnings per share (GAAP)
$
0.59

 
0.58

 
0.52

 
0.48

 
0.19

 
2.17

 
1.50

Tax Act adjustment (GAAP)

 

 

 

 
0.25

 

 
0.25

Diluted earnings per share (non-GAAP)
$
0.59

 
0.58

 
0.52

 
0.48

 
0.44

 
2.17

 
1.75

Return on average assets (annualized) (GAAP)
1.66
%
 
1.66
%
 
1.53
%
 
1.50
%
 
0.61
 %
 
1.59
%
 
1.20
 %
Tax Act adjustment (GAAP)
%
 
%
 
%
 
%
 
0.81
 %
 
%
 
0.21
 %
Return on average assets (annualized) (non-GAAP)
1.66
%
 
1.66
%
 
1.53
%
 
1.50
%
 
1.42
 %
 
1.59
%
 
1.41
 %
Return on average equity (annualized) (GAAP)
13.08
%
 
13.10
%
 
12.07
%
 
11.90
%
 
4.91
 %
 
12.56
%
 
9.80
 %
Tax Act adjustment (GAAP)
%
 
%
 
%
 
%
 
6.47
 %
 
%
 
1.66
 %
Return on average equity (annualized) (non-GAAP)
13.08
%
 
13.10
%
 
12.07
%
 
11.90
%
 
11.38
 %
 
12.56
%
 
11.46
 %
Dividend payout ratio (annualized) (GAAP)
94.92
%
 
44.83
%
 
49.06
%
 
47.92
%
 
110.53
 %
 
60.09
%
 
76.00
 %
Tax Act adjustment (GAAP)
%
 
%
 
%
 
%
 
(62.80
)%
 
%
 
(10.86
)%
Dividend payout ratio (annualized) (non-GAAP)
94.92
%
 
44.83
%
 
49.06
%
 
47.92
%
 
47.73
 %
 
60.09
%
 
65.14
 %
Effective tax rate (GAAP)
19.02
%
 
17.96
%
 
17.61
%
 
17.88
%
 
67.69
 %
 
18.15
%
 
35.70
 %
Tax Act adjustment (GAAP)
%
 
%
 
%
 
%
 
(42.57
)%
 
%
 
(10.88
)%
Effective tax rate (non-GAAP)
19.02
%
 
17.96
%
 
17.61
%
 
17.88
%
 
25.12
 %
 
18.15
%
 
24.82
 %


3




Financial Highlights
 
At or for the Three Months ended
 
At or for the Year ended
(Dollars in thousands, except per share and market data)
Dec 31,
2018
 
Sep 30,
2018
 
Jun 30,
2018
 
Mar 31,
2018
 
Dec 31,
2017
 
Dec 31,
2018
 
Dec 31,
2017
Operating results
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income 1
$
49,599

 
49,336

 
44,384

 
38,559

 
34,655

 
181,878

 
136,076

Basic earnings per share 1
$
0.59

 
0.58

 
0.53

 
0.48

 
0.44

 
2.18

 
1.75

Diluted earnings per share 1
$
0.59

 
0.58

 
0.52

 
0.48

 
0.44

 
2.17

 
1.75

Dividends declared per share 2
$
0.56

 
0.26

 
0.26

 
0.23

 
0.21

 
1.31

 
1.14

Market value per share
 
 
 
 
 
 
 
 
 
 
 
 
 
Closing
$
39.62

 
43.09

 
38.68

 
38.38

 
39.39

 
39.62

 
39.39

High
$
47.67

 
46.28

 
41.47

 
41.24

 
40.31

 
47.67

 
40.31

Low
$
36.84

 
38.37

 
35.77

 
36.72

 
36.01

 
35.77

 
31.50

Selected ratios and other data
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of common stock shares outstanding
84,521,692

 
84,521,093

 
84,516,650

 
84,511,472

 
78,006,956

 
84,521,692

 
78,006,956

Average outstanding shares - basic
84,521,640

 
84,518,407

 
84,514,257

 
80,808,904

 
78,006,956

 
83,603,515

 
77,537,664

Average outstanding shares - diluted
84,610,018

 
84,593,122

 
84,559,268

 
80,887,135

 
78,094,494

 
83,677,185

 
77,607,605

Return on average assets (annualized) 1
1.66
%
 
1.66
%
 
1.53
%
 
1.50
%
 
1.42
%
 
1.59
%
 
1.41
%
Return on average equity (annualized) 1
13.08
%
 
13.10
%
 
12.07
%
 
11.90
%
 
11.38
%
 
12.56
%
 
11.46
%
Efficiency ratio
53.93
%
 
52.26
%
 
55.44
%
 
57.80
%
 
54.02
%
 
54.73
%
 
53.94
%
Dividend payout ratio 1,2
94.92
%
 
44.83
%
 
49.06
%
 
47.92
%
 
47.73
%
 
60.09
%
 
65.14
%
Loan to deposit ratio
87.64
%
 
85.13
%
 
84.92
%
 
81.83
%
 
87.29
%
 
87.64
%
 
87.29
%
Number of full time equivalent employees
2,623

 
2,572

 
2,605

 
2,545

 
2,278

 
2,623

 
2,278

Number of locations
167

 
164

 
167

 
166

 
145

 
167

 
145

Number of ATMs
216

 
215

 
221

 
223

 
200

 
216

 
200

______________________________
1 
Excludes a one time revaluation of the deferred tax assets and deferred tax liabilities as a result of the Tax Act for the three months and year ended December 31, 2017. For additional information on the revaluation, see the “Non-GAAP Financial Measures - Tax Cuts and Jobs Act” section above.
2 Includes a special dividend declared of $0.30 per share for the three months ended December 31, 2018 and for the years ended December 31, 2018 and 2017.

KALISPELL, Mont., Jan 24, 2019 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $49.6 million for the current quarter, an increase of $14.9 million, or 43 percent, from the $34.7 million of net income for the prior year fourth quarter, excluding the revaluation of the net deferred tax asset. Diluted earnings per share for the current quarter was $0.59 per share, an increase of 34 percent from the prior year fourth quarter diluted earnings per share of $0.44, excluding the revaluation of the net deferred tax asset. Included in the current quarter was $520 thousand of acquisition-related expenses and $357 thousand of loss on sale of investments. “The Glacier team delivered very strong results in the fourth quarter and for the full year in 2018.  We are pleased to see all aspects of the business performing so well.  We thank our employees for their many contributions to the company during the year and our customers for their continued business,” said Randy Chesler, President and Chief Executive Officer. “We are also pleased to see our on-going acquisition strategy combined with organic growth continues to provide enhanced results.”

Net income of $182 million for 2018, an increase of $45.8 million, or 34 percent, over the prior year net income of $136 million, excluding the revaluation of the net deferred tax asset. Diluted earnings per share of $2.17, an increase of 24 percent from the prior year diluted earnings per share of $1.75, excluding the revaluation of the net deferred tax asset.

4




On January 16, 2019, the Company announced the signing of a definitive agreement to acquire FNB Bancorp, the holding company for The First National Bank of Layton, a community bank based in Layton, Utah (collectively, “FNB”). FNB provides banking services to individuals and businesses throughout Utah with banking offices located in Layton, Bountiful, Clearfield, and Draper. As of September 30, 2018, FNB had total assets of $326 million, total loans of $243 million and total deposits of $278 million. The acquisition marks the Company’s 21st acquisition since 2000 and its tenth transaction in the past six years. The acquisition is subject to required regulatory approvals and other customary conditions of closing and is expected to be completed during the second quarter of 2019.

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 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



5



Asset Summary
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands)
Dec 31,
2018
 
Sep 30,
2018
 
Dec 31,
2017
 
Sep 30,
2018
 
Dec 31,
2017
Cash and cash equivalents
$
203,790

 
307,104

 
200,004

 
(103,314
)
 
3,786

Debt securities, available-for-sale
2,571,663

 
2,103,619

 
1,778,243

 
468,044

 
793,420

Debt securities, held-to-maturity
297,915

 
590,915

 
648,313

 
(293,000
)
 
(350,398
)
Total debt securities
2,869,578

 
2,694,534

 
2,426,556

 
175,044

 
443,022

Loans receivable
 
 
 
 
 
 
 
 
 
Residential real estate
887,742

 
862,830

 
720,728

 
24,912

 
167,014

Commercial real estate
4,657,561

 
4,527,577

 
3,577,139

 
129,984

 
1,080,422

Other commercial
1,911,171

 
1,921,955

 
1,579,353

 
(10,784
)
 
331,818

Home equity
544,688

 
528,404

 
457,918

 
16,284

 
86,770

Other consumer
286,387

 
282,479

 
242,686

 
3,908

 
43,701

Loans receivable
8,287,549

 
8,123,245

 
6,577,824

 
164,304

 
1,709,725

Allowance for loan and lease losses
(131,239
)
 
(132,535
)
 
(129,568
)
 
1,296

 
(1,671
)
Loans receivable, net
8,156,310

 
7,990,710

 
6,448,256

 
165,600

 
1,708,054

Other assets
885,806

 
916,754

 
631,533

 
(30,948
)
 
254,273

Total assets
$
12,115,484

 
11,909,102

 
9,706,349

 
206,382

 
2,409,135


Total debt securities of $2.870 billion at December 31, 2018 increased $175 million, or 7 percent, during the current quarter and increased $443 million, or 18 percent, from the prior year fourth quarter. Debt securities represented 24 percent of total assets at December 31, 2018 compared to 25 percent of total assets at December 31, 2017.

The loan portfolio of $8.288 billion increased $164 million, or 8 percent annualized, during the current quarter. The loan category with the largest increase was commercial real estate loans which increased $130 million, or 3 percent. Excluding the $982 million of loans from the FSB and Collegiate acquisitions, the loan portfolio increased $728 million, or 11 percent, since December 31, 2017, with the largest increase in commercial real estate loans, which increased $463 million, or 13 percent.


6



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

 
129,568

 
129,572

Provision for loan losses
9,953

 
8,707

 
10,824

Charge-offs
(17,807
)
 
(11,905
)
 
(19,331
)
Recoveries
9,525

 
6,165

 
8,503

Balance at end of period
$
131,239

 
132,535

 
129,568

Other real estate owned
$
7,480

 
12,399

 
14,269

Accruing loans 90 days or more past due
2,018

 
4,333

 
6,077

Non-accrual loans
47,252

 
55,373

 
44,833

Total non-performing assets
$
56,750

 
72,105

 
65,179

Non-performing assets as a percentage of subsidiary assets
0.47
%
 
0.61
%
 
0.68
%
Allowance for loan and lease losses as a percentage of non-performing loans
266
%
 
222
%
 
255
%
Allowance for loan and lease losses as a percentage of total loans
1.58
%
 
1.63
%
 
1.97
%
Net charge-offs as a percentage of total loans
0.10
%
 
0.07
%
 
0.17
%
Accruing loans 30-89 days past due
$
33,567

 
25,181

 
37,687

Accruing troubled debt restructurings
$
25,833

 
35,080

 
38,491

Non-accrual troubled debt restructurings
$
10,660

 
12,911

 
23,709

U.S. government guarantees included in non-performing assets
$
4,811

 
5,791

 
2,513


The Company benefited this quarter from the Bank divisions continued focus on reducing non-performing assets and resolving specific troubled credits. Non-performing assets at December 31, 2018 were $56.8 million, a decrease of $15.4 million, or 21 percent, from the prior quarter and a decrease of $8.4 million, or 13 percent, from the prior year fourth quarter. Non-performing assets as a percentage of subsidiary assets at December 31, 2018 was 0.47 percent, a decrease of 14 basis points from the prior quarter, and a decrease of 21 basis points from the prior year fourth quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $33.6 million at December 31, 2018 decreased $4.1 million from prior year end. Early stage delinquencies as a percentage of loans at December 31, 2018 was 0.41 percent which was a decrease of 16 basis points from prior year end. The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at December 31, 2018 was 1.58 percent, which was a 5 basis points decrease compared to the prior quarter and a decrease of 39 basis points from a year ago. The decrease from the prior year end was driven by stabilizing credit quality and the addition of loans from new acquisitions, as they are added to the loan portfolio on a fair value basis with no allowance.


7



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
Fourth quarter 2018
$
1,246

 
$
2,542

 
1.58
%
 
0.41
%
 
0.47
%
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
%

Net charge-offs for the current quarter were $2.5 million compared to $2.2 million for the prior quarter and $2.9 million from the same quarter last year. Current quarter provision for loan losses was $1.2 million, compared to $3.2 million in the prior quarter and $2.9 million in the prior year fourth 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)
Dec 31,
2018
 
Sep 30,
2018
 
Dec 31,
2017
 
Sep 30,
2018
 
Dec 31,
2017
Deposits
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
$
3,001,178

 
3,103,112

 
2,311,902

 
(101,934
)
 
689,276

NOW and DDA accounts
2,391,307

 
2,346,050

 
1,695,246

 
45,257

 
696,061

Savings accounts
1,346,790

 
1,345,163

 
1,082,604

 
1,627

 
264,186

Money market deposit accounts
1,684,284

 
1,722,975

 
1,512,693

 
(38,691
)
 
171,591

Certificate accounts
901,484

 
932,461

 
817,259

 
(30,977
)
 
84,225

Core deposits, total
9,325,043

 
9,449,761

 
7,419,704

 
(124,718
)
 
1,905,339

Wholesale deposits
168,724

 
151,421

 
160,043

 
17,303

 
8,681

Deposits, total
9,493,767

 
9,601,182

 
7,579,747

 
(107,415
)
 
1,914,020

Repurchase agreements
396,151

 
408,754

 
362,573

 
(12,603
)
 
33,578

Federal Home Loan Bank advances
440,175

 
155,328

 
353,995

 
284,847

 
86,180

Other borrowed funds
14,708

 
9,944

 
8,224

 
4,764

 
6,484

Subordinated debentures
134,051

 
134,055

 
126,135

 
(4
)
 
7,916

Other liabilities
120,778

 
107,227

 
76,618

 
13,551

 
44,160

Total liabilities
$
10,599,630

 
10,416,490

 
8,507,292

 
183,140

 
2,092,338



8



Core deposits of $9.325 billion as of December 31, 2018 decreased $125 million, or 1 percent, from the prior quarter. The Company added back $395 million deposits during the first quarter of 2018 that were previously moved off the balance sheet as part of its strategy to say below $10 billion in total assets through December 31, 2017. Excluding the $1.315 billion of core deposits from the acquisitions and deposits moved back onto the balance sheet, core deposits increased $195 million, or 3 percent, from the prior year end.

Federal Home Loan Bank (“FHLB”) advances of $440 million at December 31, 2018, increased $285 million over the prior quarter and increased $86 million over the prior year fourth quarter to assist in funding asset growth.

Stockholders’ Equity Summary
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands, except per share data)
Dec 31,
2018
 
Sep 30,
2018
 
Dec 31,
2017
 
Sep 30,
2018
 
Dec 31,
2017
Common equity
$
1,525,281

 
1,522,329

 
1,201,036

 
2,952

 
324,245

Accumulated other comprehensive (loss) income
(9,427
)
 
(29,717
)
 
(1,979
)
 
20,290

 
(7,448
)
Total stockholders’ equity
1,515,854

 
1,492,612

 
1,199,057

 
23,242

 
316,797

Goodwill and core deposit intangible, net
(338,828
)
 
(340,508
)
 
(191,995
)
 
1,680

 
(146,833
)
Tangible stockholders’ equity
$
1,177,026

 
1,152,104

 
1,007,062

 
24,922

 
169,964

Stockholders’ equity to total assets
12.51
%
 
12.53
%
 
12.35
%
 
 
 
 
Tangible stockholders’ equity to total tangible assets
9.99
%
 
9.96
%
 
10.58
%
 
 
 
 
Book value per common share
$
17.93

 
17.66

 
15.37

 
0.27

 
2.56

Tangible book value per common share
$
13.93

 
13.63

 
12.91

 
0.30

 
1.02


Tangible stockholders’ equity of $1.177 billion at December 31, 2018 increased $25 million compared to the prior quarter which was primarily the result of an increase in other comprehensive income. Tangible stockholders’ equity increased $170 million over the prior year fourth 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 $0.30 per share from the prior quarter and increased $1.02 per share from a year ago.

Cash Dividends
On December 27, 2018, the Company’s Board of Directors declared a special cash dividend of $0.30 per share, the 15th special dividend the Company has declared. The dividend was payable January 17, 2019 to shareholders of record on January 8, 2019. On November 13, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend was payable December 20, 2018 to shareholders of record on December 11, 2018. The dividend was the 135th consecutive quarterly dividend. Regular quarterly dividends declared for 2018 were $1.01 per share, an increase of $0.17 per share, or 20 percent, compared to prior year quarterly dividends of $0.84 per share. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.


9



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

Income Summary
 
Three Months ended
(Dollars in thousands)
Dec 31,
2018
 
Sep 30,
2018
 
Jun 30,
2018
 
Mar 31,
2018
 
Dec 31,
2017
Net interest income
 
 
 
 
 
 
 
 
 
Interest income
$
125,310

 
122,905

 
117,715

 
103,066

 
96,898

Interest expense
9,436

 
9,160

 
9,161

 
7,774

 
7,072

Total net interest income
115,874

 
113,745

 
108,554

 
95,292

 
89,826

Non-interest income
 
 
 
 
 
 
 
 
 
Service charges and other fees
19,708

 
19,504

 
18,804

 
16,871

 
17,282

Miscellaneous loan fees and charges
1,278

 
1,807

 
2,243

 
1,477

 
1,077

Gain on sale of loans
5,639

 
7,256

 
8,142

 
6,097

 
7,408

Loss on sale of investments
(357
)
 
(367
)
 
(56
)
 
(333
)
 
(115
)
Other income
2,226

 
4,216

 
2,695

 
1,974

 
2,057

Total non-interest income
28,494

 
32,416

 
31,828

 
26,086

 
27,709

Total income
$
144,368

 
146,161

 
140,382

 
121,378

 
117,535

Net interest margin (tax-equivalent)
4.30
%
 
4.26
%
 
4.17
%
 
4.10
%
 
4.23
%
 
 
 
 
 
 
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands)
 
 
Sep 30,
2018
 
Jun 30,
2018
 
Mar 31,
2018
 
Dec 31,
2017
Net interest income
 
 
 
 
 
 
 
 
 
Interest income
 
 
$
2,405

 
7,595

 
22,244

 
28,412

Interest expense
 
 
276

 
275

 
1,662

 
2,364

Total net interest income
 
 
2,129

 
7,320

 
20,582

 
26,048

Non-interest income
 
 
 
 
 
 
 
 
 
Service charges and other fees
 
 
204

 
904

 
2,837

 
2,426

Miscellaneous loan fees and charges
 
 
(529
)
 
(965
)
 
(199
)
 
201

Gain on sale of loans
 
 
(1,617
)
 
(2,503
)
 
(458
)
 
(1,769
)
Loss on sale of investments
 
 
10

 
(301
)
 
(24
)
 
(242
)
Other income
 
 
(1,990
)
 
(469
)
 
252

 
169

Total non-interest income
 
 
(3,922
)
 
(3,334
)
 
2,408

 
785

Total income
 
 
$
(1,793
)
 
3,986

 
22,990

 
26,833


Net Interest Income
The current quarter interest income of $125 million increased $2.4 million, or 2 percent, from the prior quarter and increased $28.4 million, or 29 percent, over the prior year fourth quarter with both increases primarily attributable to the increase in interest income from commercial loans. Interest income on commercial loans increased $1.7 million, or 2 percent, from the prior quarter and increased $20.9 million, or 34 percent, from the prior year fourth quarter.

The current quarter interest expense of $9.4 million remained stable from the prior quarter and increased $2.4 million, or 33 percent, from the prior year fourth quarter. The total cost of funding (including non-interest bearing

10



deposits) for the current quarter was 36 basis points compared to 36 basis points for the prior quarter and 33 basis points for the prior year fourth quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.30 percent compared to 4.26 percent in the prior quarter. The 4 basis points increase in the net interest margin was primarily the result of increased yields on the loan portfolio. The current quarter net interest margin increased 7 basis points over the prior year fourth quarter net interest margin of 4.23 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 fourth quarter resulted from the remix of earning assets to higher yielding loans, increased yields on the loan portfolio, and relatively stable funding costs. “During the quarter and throughout the year, the Bank divisions maintained good discipline in their deposit and loan pricing,” said Ron Copher, Chief Financial Officer. “The net interest margin expansion during each quarter reflected the increased yields on earnings assets combined with stable funding costs each quarter.”

Non-interest Income
Non-interest income for the current quarter totaled $28.5 million, a decrease of $3.9 million, or 12 percent, from the prior quarter and an increase of $785 thousand, or 3 percent, over the same quarter last year. Service charges and other fees of $19.7 million for the current quarter increased $2.4 million, or 14 percent, from the prior year fourth quarter with such increases primarily due to the increased number of accounts from organic growth and acquisitions. Gain on sale of loans decreased $1.6 million, or 22 percent, from the prior quarter as a result of seasonal activity and decreased $1.8 million, or 24 percent from the prior year fourth quarter as result of the decrease in purchase and refinance activity. Other income decreased $2.0 million, or 47 percent, from the prior quarter and was primarily due to the prior quarter $2.3 million gain on sale of a former branch building.


11



Non-interest Expense Summary
 
Three Months ended
(Dollars in thousands)
Dec 31,
2018
 
Sep 30,
2018
 
Jun 30,
2018
 
Mar 31,
2018
 
Dec 31,
2017
Compensation and employee benefits
$
50,385

 
49,927

 
49,023

 
45,721

 
40,465

Occupancy and equipment
7,884

 
7,914

 
7,662

 
7,274

 
6,925

Advertising and promotions
2,434

 
2,432

 
2,530

 
2,170

 
2,024

Data processing
3,951

 
3,752

 
4,241

 
3,967

 
3,970

Other real estate owned
264

 
2,674

 
211

 
72

 
377

Regulatory assessments and insurance
1,263

 
1,277

 
1,329

 
1,206

 
1,069

Core deposit intangibles amortization
1,731

 
1,735

 
1,748

 
1,056

 
614

Other expenses
13,964

 
13,118

 
15,051

 
12,161

 
12,922

Total non-interest expense
$
81,876

 
82,829

 
81,795

 
73,627

 
68,366

 
 
 
 
 
 
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands)
 
 
Sep 30,
2018
 
Jun 30,
2018
 
Mar 31,
2018
 
Dec 31,
2017
Compensation and employee benefits
 
 
$
458

 
1,362

 
4,664

 
9,920

Occupancy and equipment
 
 
(30
)
 
222

 
610

 
959

Advertising and promotions
 
 
2

 
(96
)
 
264

 
410

Data processing
 
 
199

 
(290
)
 
(16
)
 
(19
)
Other real estate owned
 
 
(2,410
)
 
53

 
192

 
(113
)
Regulatory assessments and insurance
 
 
(14
)
 
(66
)
 
57

 
194

Core deposit intangibles amortization
 
 
(4
)
 
(17
)
 
675

 
1,117

Other expense
 
 
846

 
(1,087
)
 
1,803

 
1,042

Total non-interest expense
 
 
$
(953
)
 
81

 
8,249

 
13,510


Total non-interest expense of $81.9 million for the current quarter decreased $1.0 million, or 1 percent, over the prior quarter and increased $13.5 million, or 20 percent, over the prior year fourth quarter. Compensation and employee benefits increased by $458 thousand, or 1 percent, from the prior quarter. Compensation and employee benefits increased by $9.9 million, or 25 percent, from the prior year fourth quarter principally due to the increased number of employees from acquisitions. Occupancy and equipment expense increased $959 thousand, or 14 percent, over the prior year fourth quarter and was attributable to increased costs from acquisitions. OREO expenses decreased $2.4 million from the prior quarter, due to a write down of $2.2 million on a single property during the third quarter of 2018. Acquisition-related expenses were $520 thousand during the current quarter compared to $1.3 million in the prior quarter and $936 thousand in the prior year fourth quarter.

Federal and State Income Tax Expense
Tax expense during the fourth quarter of 2018 was $11.6 million, which is a decrease of $19.7 million, from the prior year fourth quarter and was primarily attributable to the revaluation of the net deferred tax asset in the prior year which was partially offset by the decrease in the federal income tax rate driven by the Tax Act. The effective tax rate in the fourth quarter of 2018 was 19 percent compared to 25 percent in the prior year fourth quarter, excluding the revaluation of the net deferred tax asset.


12



Efficiency Ratio
The current quarter efficiency ratio was 53.93 percent, a 167 basis points increase from the prior quarter efficiency ratio of 52.26 percent. Excluding the prior quarter gain from the sale of the former branch building, the prior quarter efficiency ratio would have been 53.06 percent. The current quarter efficiency ratio was also higher than the prior quarter efficiency ratio due to the $1.6 million seasonal decrease in the gain on sale of loans during the current quarter.


Operating Results for Year ended December 31, 2018
Compared to December 31, 2017

Income Summary
 
Year ended
 
 
 
 
(Dollars in thousands)
Dec 31,
2018
 
Dec 31,
2017
 
$ Change
 
% Change
Net interest income
 
 
 
 
 
 
 
Interest income
$
468,996

 
$
375,022

 
$
93,974

 
25
 %
Interest expense
35,531

 
29,864

 
5,667

 
19
 %
Total net interest income
433,465

 
345,158

 
88,307

 
26
 %
Non-interest income
 
 
 
 
 
 
 
Service charges and other fees
74,887

 
67,717

 
7,170

 
11
 %
Miscellaneous loan fees and charges
6,805

 
4,360

 
2,445

 
56
 %
Gain on sale of loans
27,134

 
30,439

 
(3,305
)
 
(11
)%
Loss on sale of investments
(1,113
)
 
(660
)
 
(453
)
 
69
 %
Other income
11,111

 
10,383

 
728

 
7
 %
Total non-interest income
118,824

 
112,239

 
6,585

 
6
 %
                Total income
$
552,289

 
$
457,397

 
$
94,892

 
21
 %
Net interest margin (tax-equivalent)
4.21
%
 
4.12
%
 
 
 
 

Net Interest Income
Interest income of $469 million for 2018 increased $94.0 million, or 25 percent, from 2017 and was principally due to a $76.8 million increase in interest income from commercial loans. Interest expense of $35.5 million for the current year increased $5.7 million over the prior year same period. The Company has maintained stable funding costs through its focus on growing non-interest bearing deposits and continued pricing discipline. The total funding cost for 2018 and 2017 was 36 basis points.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for 2018 was 4.21 percent, a 9 basis points increase from the net interest margin of 4.12 percent for 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.


13



Non-interest Income
Non-interest income of $119 million for the current year increased $6.6 million, or 6 percent, over the prior year. Service charges and other fees of $74.9 million for 2018 increased $7.2 million, or 11 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 2018 increased $2.4 million, or 56 percent from the prior year as a result of the recent acquisitions and increased loan growth. Gain on sale of loans for the current year decreased $3.3 million, or 11 percent, from the prior year due to the decrease in purchase and refinance activity. Other income of $11.1 million, increased $728 thousand, or 7 percent, from the prior year with increases of $1.9 million from the sale of bank assets and a decrease of $2.1 million from the gain on sale of OREO.

Non-interest Expense Summary
 
Year ended
 
 
 
 
(Dollars in thousands)
Dec 31,
2018
 
Dec 31,
2017
 
$ Change
 
% Change
Compensation and employee benefits
$
195,056

 
$
160,506

 
$
34,550

 
22
%
Occupancy and equipment
30,734

 
26,631

 
4,103

 
15
%
Advertising and promotions
9,566

 
8,405

 
1,161

 
14
%
Data processing
15,911

 
14,150

 
1,761

 
12
%
Other real estate owned
3,221

 
1,909

 
1,312

 
69
%
Regulatory assessments and insurance
5,075

 
4,431

 
644

 
15
%
Core deposit intangibles amortization
6,270

 
2,494

 
3,776

 
151
%
Other expenses
54,294

 
47,045

 
7,249

 
15
%
Total non-interest expense
$
320,127

 
$
265,571

 
$
54,556

 
21
%

Total non-interest expense of $320 million for 2018 increased $54.6 million, or 21 percent, over the prior year. Compensation and employee benefits for 2018 increased $34.6 million, or 22 percent, from the same period last year primarily due to the increased number of employees from acquisitions. Occupancy and equipment expense for 2018 increased $4.1 million, or 15 percent from the prior year primarily as a result of increased costs from acquisitions. Data processing expense for the current year increased $1.8 million, or 12 percent, from the prior year as a result of increased costs from the acquisitions and organic growth. Current year other expenses of $54.3 million increased $7.2 million, or 15 percent, from the prior year due to an increase in acquisition-related expenses and increased costs from acquired banks and organic growth. Acquisition-related expenses were $6.6 million during 2018 compared to $2.1 million in 2017.

Provision for Loan Losses
The provision for loan losses was $10.0 million for 2018, a decrease of $871 thousand from 2017 provision for loan loss of $10.8 million. Net charge-offs during the 2018 were $8.3 million compared to $10.8 million during 2017.

Federal and State Income Tax Expense
Tax expense of $40.3 million in 2018 decreased $24.3 million, or 38 percent, over the prior year same period as a result of a the revaluation of the net deferred tax asset and the 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, excluding the revaluation of the net deferred tax asset.

Efficiency Ratio
For 2018, the efficiency ratio was 54.73, a 79 basis points increase over the prior year efficiency ratio of 53.94. Applying the same 35 percent federal corporate income tax rate as in effect during the prior year, the efficiency ratio would be 53.77 percent for 2018, or 17 basis points lower than 2017.

14



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.

15



Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, January 25, 2019. 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 3053399. To participate on the webcast, log on to: https://edge.media-server.com/m6/p/ddsz3whh. 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 3053399 by February 8, 2019.

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.


16



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

(Dollars in thousands, except per share data)
December 31,
2018
 
September 30,
2018
 
December 31,
2017
Assets
 
 
 
 
 
Cash on hand and in banks
$
161,782

 
171,394

 
139,948

Federal funds sold

 

 

Interest bearing cash deposits
42,008

 
135,710

 
60,056

Cash and cash equivalents
203,790

 
307,104

 
200,004

Debt securities, available-for-sale
2,571,663

 
2,103,619

 
1,778,243

Debt securities, held-to-maturity
297,915

 
590,915

 
648,313

Total debt securities
2,869,578

 
2,694,534

 
2,426,556

Loans held for sale, at fair value
33,156

 
50,649

 
38,833

Loans receivable
8,287,549

 
8,123,245

 
6,577,824

Allowance for loan and lease losses
(131,239
)
 
(132,535
)
 
(129,568
)
Loans receivable, net
8,156,310

 
7,990,710

 
6,448,256

Premises and equipment, net
241,528

 
239,006

 
177,348

Other real estate owned
7,480

 
12,399

 
14,269

Accrued interest receivable
54,408

 
62,248

 
44,462

Deferred tax asset
23,564

 
37,264

 
38,344

Core deposit intangible, net
49,242

 
50,973

 
14,184

Goodwill
289,586

 
289,535

 
177,811

Non-marketable equity securities
27,871

 
16,502

 
29,884

Bank-owned life insurance
82,320

 
81,850

 
59,351

Other assets
76,651

 
76,328

 
37,047

Total assets
$
12,115,484

 
11,909,102

 
9,706,349

Liabilities
 
 
 
 
 
Non-interest bearing deposits
$
3,001,178

 
3,103,112

 
2,311,902

Interest bearing deposits
6,492,589

 
6,498,070

 
5,267,845

Securities sold under agreements to repurchase
396,151

 
408,754

 
362,573

FHLB advances
440,175

 
155,328

 
353,995

Other borrowed funds
14,708

 
9,944

 
8,224

Subordinated debentures
134,051

 
134,055

 
126,135

Accrued interest payable
4,252

 
4,065

 
3,450

Other liabilities
116,526

 
103,162

 
73,168

Total liabilities
10,599,630

 
10,416,490

 
8,507,292

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

Paid-in capital
1,051,253

 
1,050,463

 
797,997

Retained earnings - substantially restricted
473,183

 
471,021

 
402,259

Accumulated other comprehensive loss
(9,427
)
 
(29,717
)
 
(1,979
)
Total stockholders’ equity
1,515,854

 
1,492,612

 
1,199,057

Total liabilities and stockholders’ equity
$
12,115,484

 
11,909,102

 
9,706,349



17



Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

 
Three Months ended
 
Year ended
(Dollars in thousands, except per share data)
December 31,
2018
 
September 30,
2018
 
December 31,
2017
 
December 31,
2018
 
December 31,
2017
Interest Income
 
 
 
 
 
 
 
 
 
Debt securities
$
22,016

 
21,971

 
18,663

 
86,499

 
81,968

Residential real estate loans
10,751

 
10,356

 
8,520

 
40,041

 
33,114

Commercial loans
82,238

 
80,587

 
61,329

 
304,164

 
227,356

Consumer and other loans
10,305

 
9,991

 
8,386

 
38,292

 
32,584

Total interest income
125,310

 
122,905

 
96,898

 
468,996

 
375,022

Interest Expense
 
 
 
 
 
 
 
 
 
Deposits
4,989

 
4,837

 
3,288

 
18,359

 
16,793

Securities sold under agreements to repurchase
707

 
570

 
496

 
2,248

 
1,858

Federal Home Loan Bank advances
2,146

 
2,132

 
2,106

 
8,880

 
6,748

Other borrowed funds
(10
)
 
63

 
24

 
95

 
79

Subordinated debentures
1,604

 
1,558

 
1,158

 
5,949

 
4,386

Total interest expense
9,436

 
9,160

 
7,072

 
35,531

 
29,864

Net Interest Income
115,874

 
113,745

 
89,826

 
433,465

 
345,158

Provision for loan losses
1,246

 
3,194

 
2,886

 
9,953

 
10,824

Net interest income after provision for loan losses
114,628

 
110,551

 
86,940

 
423,512

 
334,334

Non-Interest Income
 
 
 
 
 
 
 
 
 
Service charges and other fees
19,708

 
19,504

 
17,282

 
74,887

 
67,717

Miscellaneous loan fees and charges
1,278

 
1,807

 
1,077

 
6,805

 
4,360

Gain on sale of loans
5,639

 
7,256

 
7,408

 
27,134

 
30,439

Loss on sale of debt securities
(357
)
 
(367
)
 
(115
)
 
(1,113
)
 
(660
)
Other income
2,226

 
4,216

 
2,057

 
11,111

 
10,383

Total non-interest income
28,494

 
32,416

 
27,709

 
118,824

 
112,239

Non-Interest Expense
 
 
 
 
 
 
 
 
 
Compensation and employee benefits
50,385

 
49,927

 
40,465

 
195,056

 
160,506

Occupancy and equipment
7,884

 
7,914

 
6,925

 
30,734

 
26,631

Advertising and promotions
2,434

 
2,432

 
2,024

 
9,566

 
8,405

Data processing
3,951

 
3,752

 
3,970

 
15,911

 
14,150

Other real estate owned
264

 
2,674

 
377

 
3,221

 
1,909

Regulatory assessments and insurance
1,263

 
1,277

 
1,069

 
5,075

 
4,431

Core deposit intangibles amortization
1,731

 
1,735

 
614

 
6,270

 
2,494

Other expenses
13,964

 
13,118

 
12,922

 
54,294

 
47,045

Total non-interest expense
81,876

 
82,829

 
68,366

 
320,127

 
265,571

Income Before Income Taxes
61,246

 
60,138

 
46,283

 
222,209

 
181,002

Federal and state income tax expense
11,647

 
10,802

 
31,327

 
40,331

 
64,625

Net Income
$
49,599

 
49,336

 
14,956

 
181,878

 
116,377


18



Glacier Bancorp, Inc.
Average Balance Sheets

 
Three Months ended
 
December 31, 2018
 
December 31, 2017
(Dollars in thousands)
Average
Balance
 
Interest &
Dividends
 
Average
Yield/
Rate
 
Average
Balance
 
Interest &
Dividends
 
Average
Yield/
Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
Residential real estate loans
$
919,468

 
$
10,751

 
4.68
%
 
$
758,180

 
$
8,520

 
4.50
%
Commercial loans 1
6,452,215

 
83,319

 
5.12
%
 
5,089,922

 
63,140

 
4.92
%
Consumer and other loans
820,439

 
10,305

 
4.98
%
 
695,288

 
8,386

 
4.79
%
Total loans 2
8,192,122

 
104,375

 
5.05
%
 
6,543,390

 
80,046

 
4.85
%
Tax-exempt debt securities 3
1,082,702

 
12,421

 
4.59
%
 
1,089,640

 
15,485

 
5.68
%
Taxable debt securities 4
1,783,881

 
12,444

 
2.79
%
 
1,483,157

 
8,774

 
2.37
%
Total earning assets
11,058,705

 
129,240

 
4.64
%
 
9,116,187

 
104,305

 
4.54
%
Goodwill and intangibles
339,617

 
 
 
 
 
192,663

 
 
 
 
Non-earning assets
471,696

 
 
 
 
 
402,802

 
 
 
 
Total assets
$
11,870,018

 
 
 
 
 
$
9,711,652

 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
$
3,050,140

 
$

 
%
 
$
2,334,103