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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): July 18, 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
____________________________________________________________

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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value
GBCI
NASDAQ

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 July 18, 2019, the Company issued a press release announcing its financial results for the quarter ended June 30, 2019. 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 July 18, 2019, announcing financial results for the quarter ended June 30, 2019.







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:
July 18, 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


398796061_gbcilogostatesnewa04.jpg

NEWS RELEASE
July 18, 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 JUNE 30, 2019

2nd Quarter 2019 Highlights:
Net income of $52.4 million for the current quarter, an increase of $8.0 million, or 18 percent, over the prior year second quarter net income of $44.4 million.
Current quarter diluted earnings per share of $0.61, an increase of 17 percent from the prior year second quarter diluted earnings per share of $0.52.
Current quarter organic loan growth was $270 million, or 13 percent annualized.
Core deposits organically grew $40.1 million, or 2 percent annualized, during the current quarter with non-interest bearing deposit growth of $120 million, or 16 percent annualized.
Net interest margin of 4.33 percent was stable compared to 4.34 percent in the prior quarter and increased 16 basis points over the prior year second quarter. Loan yields increased 2 basis points in the current quarter and the cost of core deposits remained unchanged.
Stable credit quality with non-performing assets as a percentage of subsidiary assets improving to 0.41 percent in the current quarter compared to 0.42 percent for the prior quarter and 0.71 percent from the prior year second quarter.
Dividend declared of $0.27 per share, or 4 percent increase over the prior quarter. The dividend was the 137th consecutive quarterly dividend declared by the Company.
The Company completed the acquisition of FNB Bancorp, the holding company for The First National Bank of Layton, a community bank based in Layton, Utah, with total assets of $379 million.
The Company has received all regulatory approvals for the acquisition of Heritage Bancorp, the parent company of Heritage Bank of Nevada, a community bank based in Reno, Nevada, with total assets of $842 million at June 30, 2019. The acquisition is expected to be completed effective July 31, 2019.

First Half of 2019 Highlights:
Net income of $101.5 million for the first half of 2019, an increase of $18.6 million, or 22 percent, over the first half of 2018 net income of $82.9 million.

1



Diluted earnings per share of $1.19, an increase of 19 percent from the prior year first six months diluted earnings per share of $1.00.
Organic loan growth was $309 million, or 7 percent annualized, for the first half of 2019.
Core deposits organically grew $110 million, or 2 percent annualized, during the current year with non-interest bearing deposit growth of $170 million, or 11 percent annualized.
Dividend declared of $0.53 per share, an increase of $0.04 per share, or 8 percent, over the prior year first six months dividends of $0.49.

Financial Highlights
 
At or for the Three Months ended
 
At or for the Six Months ended
(Dollars in thousands, except per share and market data)
Jun 30,
2019
 
Mar 31,
2019
 
Jun 30,
2018
 
Jun 30,
2019
 
Jun 30,
2018
Operating results
 
 
 
 
 
 
 
 
 
Net income
$
52,392

 
49,132

 
44,384

 
101,524

 
82,943

Basic earnings per share
$
0.61

 
0.58

 
0.53

 
1.19

 
1.00

Diluted earnings per share
$
0.61

 
0.58

 
0.52

 
1.19

 
1.00

Dividends declared per share
$
0.27

 
0.26

 
0.26

 
0.53

 
0.49

Market value per share
 
 
 
 
 
 
 
 
 
Closing
$
40.55

 
40.07

 
38.68

 
40.55

 
38.68

High
$
43.44

 
45.47

 
41.47

 
45.47

 
41.47

Low
$
38.65

 
37.58

 
35.77

 
37.58

 
35.77

Selected ratios and other data
 
 
 
 
 
 
 
 
 
Number of common stock shares outstanding
86,637,394

 
84,588,199

 
84,516,650

 
86,637,394

 
84,516,650

Average outstanding shares - basic
85,826,290

 
84,549,974

 
84,514,257

 
85,191,658

 
82,671,816

Average outstanding shares - diluted
85,858,286

 
84,614,248

 
84,559,268

 
85,241,238

 
82,734,407

Return on average assets (annualized)
1.69
%
 
1.67
%
 
1.53
%
 
1.68
%
 
1.52
%
Return on average equity (annualized)
12.82
%
 
13.02
%
 
12.07
%
 
12.91
%
 
11.99
%
Efficiency ratio
54.50
%
 
55.37
%
 
55.44
%
 
54.93
%
 
56.54
%
Dividend payout ratio
44.26
%
 
44.83
%
 
49.06
%
 
44.54
%
 
49.00
%
Loan to deposit ratio
90.27
%
 
87.14
%
 
84.92
%
 
90.27
%
 
84.92
%
Number of full time equivalent employees
2,703

 
2,634

 
2,605

 
2,703

 
2,605

Number of locations
175

 
169

 
167

 
175

 
167

Number of ATMs
228

 
222

 
221

 
228

 
221



KALISPELL, Mont., Jul 18, 2019 (GLOBE NEWSWIRE) - Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $52.4 million for the current quarter, an increase of $8.0 million, or 18 percent, from the $44.4 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.61 per share, an increase of 17 percent from the prior year second quarter diluted earnings per share of $0.52. Included in the current quarter was $1.8 million of acquisition-related expenses. “We saw excellent loan growth this quarter supported by a stable net interest margin, consistent credit performance and efficiency at targeted levels. Growth in earnings per share and interest income were strong,” said Randy Chesler, President and Chief Executive Officer. “Hats off to the Glacier divisions for delivering another quarter of strong results and we welcome First Community Bank Utah to the Glacier team.”


2



Net income for the first six months ended June 30, 2019 was $101.5 million, an increase of $18.6 million, or 22 percent, from the $82.9 million of net income for the first six months of the prior year. Diluted earnings per share for the first half of the current year was $1.19 per share, an increase of $0.19, or 19 percent, from the diluted earnings per share of $1.00 for the same period in the prior year.

In the second quarter of 2019, the Company announced the signing of a definitive agreement to acquire Heritage Bancorp, the bank holding company for Heritage Bank of Nevada, a community bank based in Reno, Nevada (collectively, “Heritage”). Heritage provides banking services to individuals and businesses throughout Northern Nevada with seven banking offices located in Carson City, Gardnerville, Reno and Sparks. As of June 30, 2019, Heritage had total assets of $842 million, gross loans of $612 million and total deposits of $717 million. The acquisition has received the required regulatory approvals, is subject to other customary conditions of closing and is expected to be completed effective July 31, 2019. Upon closing of the transaction, Heritage will become the Company’s sixteenth Bank division.

On April 30, 2019, the Company completed the acquisition of FNB Bancorp, the holding company for The First National Bank of Layton, a community bank based in Layton, Utah (“FNB”). FNB provides banking services to individuals and businesses throughout Utah with six banking offices located in Layton, Bountiful, Clearfield, and Draper. Upon closing of the transaction, FNB became First Community Bank Utah, the Company’s fifteenth Bank division. The Company’s results of operations and financial condition include the acquisition beginning on the acquisition date and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:

 
FNB
(Dollars in thousands)
April 30,
2019
Total assets
$
379,155

Debt securities
47,247

Loans receivable
245,485

Non-interest bearing deposits
93,647

Interest bearing deposits
180,999

Borrowings
7,273


Asset Summary
 
 
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands)
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Jun 30,
2018
 
Mar 31,
2019
 
Dec 31,
2018
 
Jun 30,
2018
Cash and cash equivalents
$
231,209

 
202,527

 
203,790

 
368,132

 
28,682

 
27,419

 
(136,923
)
Debt securities, available-for-sale
2,470,634

 
2,522,322

 
2,571,663

 
2,177,352

 
(51,688
)
 
(101,029
)
 
293,282

Debt securities, held-to-maturity
252,097

 
255,572

 
297,915

 
620,409

 
(3,475
)
 
(45,818
)
 
(368,312
)
Total debt securities
2,722,731

 
2,777,894

 
2,869,578

 
2,797,761

 
(55,163
)
 
(146,847
)
 
(75,030
)
Loans receivable
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
920,715

 
884,732

 
887,742

 
835,382

 
35,983

 
32,973

 
85,333

Commercial real estate
4,959,863

 
4,686,082

 
4,657,561

 
4,384,781

 
273,781

 
302,302

 
575,082

Other commercial
2,076,605

 
1,909,452

 
1,911,171

 
1,940,435

 
167,153

 
165,434

 
136,170

Home equity
596,041

 
562,381

 
544,688

 
511,043

 
33,660

 
51,353

 
84,998

Other consumer
288,553

 
283,423

 
286,387

 
277,031

 
5,130

 
2,166

 
11,522

Loans receivable
8,841,777

 
8,326,070

 
8,287,549

 
7,948,672

 
515,707

 
554,228

 
893,105

Allowance for loan and lease losses
(129,054
)
 
(129,786
)
 
(131,239
)
 
(131,564
)
 
732

 
2,185

 
2,510

Loans receivable, net
8,712,723

 
8,196,284

 
8,156,310

 
7,817,108

 
516,439

 
556,413

 
895,615

Other assets
1,009,698

 
897,074

 
885,806

 
914,643

 
112,624

 
123,892

 
95,055

Total assets
$
12,676,361

 
12,073,779

 
12,115,484

 
11,897,644

 
602,582

 
560,877

 
778,717



3



Total debt securities of $2.723 billion at June 30, 2019 decreased $55.2 million, or 2 percent, during the current quarter and decreased $75.0 million, or 3 percent, from the prior year second quarter. Debt securities represented 21 percent of total assets at June 30, 2019 compared to 24 percent of total assets at December 31, 2018 and June 30, 2018.

The loan portfolio of $8.842 billion increased $270 million, or 13 percent annualized, during the current quarter excluding the FNB acquisition. The loan category with the largest increase was other commercial loans which increased $114 million, or 6 percent. Excluding the acquisition, the loan portfolio increased $648 million, or 8 percent, since June 30, 2018, with the largest increase in commercial real estate loans, which increased $397 million, or 9 percent.

Credit Quality Summary
 
At or for the Six Months ended
 
At or for the Three Months ended
 
At or for the Year ended
 
At or for the Six Months ended
(Dollars in thousands)
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Jun 30,
2018
Allowance for loan and lease losses
 
 
 
 
 
 
 
Balance at beginning of period
$
131,239

 
131,239

 
129,568

 
129,568

Provision for loan losses
57

 
57

 
9,953

 
5,513

Charge-offs
(6,200
)
 
(3,341
)
 
(17,807
)
 
(7,611
)
Recoveries
3,958

 
1,831

 
9,525

 
4,094

Balance at end of period
$
129,054

 
129,786

 
131,239

 
131,564

Other real estate owned
$
7,281

 
8,125

 
7,480

 
13,616

Accruing loans 90 days or more past due
3,463

 
2,451

 
2,018

 
12,751

Non-accrual loans
41,195

 
40,269

 
47,252

 
58,170

Total non-performing assets
$
51,939

 
50,845

 
56,750

 
84,537

Non-performing assets as a percentage of subsidiary assets
0.41
%
 
0.42
%
 
0.47
%
 
0.71
%
Allowance for loan and lease losses as a percentage of non-performing loans
289
%
 
304
%
 
266
%
 
186
%
Allowance for loan and lease losses as a percentage of total loans
1.46
%
 
1.56
%
 
1.58
%
 
1.66
%
Net charge-offs as a percentage of total loans
0.03
%
 
0.02
%
 
0.10
%
 
0.04
%
Accruing loans 30-89 days past due
$
37,937

 
36,894

 
33,567

 
39,650

Accruing troubled debt restructurings
$
25,019

 
24,468

 
25,833

 
34,991

Non-accrual troubled debt restructurings
$
6,041

 
6,747

 
10,660

 
18,380

U.S. government guarantees included in non-performing assets
$
2,785

 
2,649

 
4,811

 
7,265


Non-performing assets of $51.9 million at June 30, 2019 increased $1.1 million, or 2 percent, over the prior quarter and decreased $32.6 million, or 39 percent, over the prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2019 was 0.41 percent, a decrease of 1 basis point from the prior quarter, and a decrease of 30 basis points from the prior year second quarter. Early stage delinquencies (accruing loans 30-89 days past due) of $37.9 million at June 30, 2019 increased $1.0 million from the prior quarter and decreased $1.7 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2019 was 0.43 percent, which was a decrease of 1 basis point from prior quarter and a decrease of 7 basis points from prior year second quarter. The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at June 30, 2019 was 1.46 percent, which was a 10 basis points decrease compared to the prior quarter and a decrease of 20 basis points from a year ago. The decrease was attributable to stabilizing credit quality and

4



the addition of loans from the FNB acquisition which were added to the portfolio on a fair value basis and as a result did not require an allowance at acquisition date.

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
Second quarter 2019
$

 
$
732

 
1.46
%
 
0.43
%
 
0.41
%
First quarter 2019
57

 
1,510

 
1.56
%
 
0.44
%
 
0.42
%
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
%

Net charge-offs for the current quarter were $732 thousand compared to $1.5 million for the prior quarter and $762 thousand from the same quarter last year. There was no current quarter provision for loan losses compared to $57 thousand in the prior quarter and $4.7 million in the prior year second 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.


5



Liability Summary
 
 
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands)
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Jun 30,
2018
 
Mar 31,
2019
 
Dec 31,
2018
 
Jun 30,
2018
Deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
$
3,265,077

 
3,051,119

 
3,001,178

 
2,914,885

 
213,958

 
263,899

 
350,192

NOW and DDA accounts
2,487,806

 
2,383,806

 
2,391,307

 
2,354,214

 
104,000

 
96,499

 
133,592

Savings accounts
1,412,046

 
1,373,544

 
1,346,790

 
1,330,637

 
38,502

 
65,256

 
81,409

Money market deposit accounts
1,647,372

 
1,689,962

 
1,684,284

 
1,723,681

 
(42,590
)
 
(36,912
)
 
(76,309
)
Certificate accounts
897,625

 
896,731

 
901,484

 
927,608

 
894

 
(3,859
)
 
(29,983
)
Core deposits, total
9,709,926

 
9,395,162

 
9,325,043

 
9,251,025

 
314,764

 
384,883

 
458,901

Wholesale deposits
144,949

 
192,953

 
168,724

 
172,550

 
(48,004
)
 
(23,775
)
 
(27,601
)
Deposits, total
9,854,875

 
9,588,115

 
9,493,767

 
9,423,575

 
266,760

 
361,108

 
431,300

Repurchase agreements
494,651

 
489,620

 
396,151

 
361,515

 
5,031

 
98,500

 
133,136

Federal Home Loan Bank advances
319,996

 
154,683

 
440,175

 
395,037

 
165,313

 
(120,179
)
 
(75,041
)
Other borrowed funds
14,765

 
14,738

 
14,708

 
9,917

 
27

 
57

 
4,848

Subordinated debentures
139,912

 
134,048

 
134,051

 
134,058

 
5,864

 
5,861

 
5,854

Other liabilities
164,786

 
141,725

 
120,778

 
99,550

 
23,061

 
44,008

 
65,236

Total liabilities
$
10,988,985

 
10,522,929

 
10,599,630

 
10,423,652

 
466,056

 
389,355

 
565,333


Excluding the acquisition, core deposits of $9.710 billion as of June 30, 2019 increased $110 million, or 2 percent annualized, from the prior quarter and increased $184 million, or 2 percent, from the prior year second quarter. Non-interest bearing deposits organically increased $120 million, or 16 percent annualized, over the prior quarter and increased $257 million, or 9 percent, over the prior year second quarter.

Federal Home Loan Bank (“FHLB”) advances of $320 million at June 30, 2019, increased $165 million over the prior quarter and decreased $75.0 million over the prior year second quarter. FHLB advances and wholesale deposits will continue to fluctuate to supplement liquidity needs during the year.

Stockholders’ Equity Summary
 
 
 
 
 
 
 
 
 
$ Change from
(Dollars in thousands, except per share data)
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Jun 30,
2018
 
Mar 31,
2019
 
Dec 31,
2018
 
Jun 30,
2018
Common equity
$
1,643,928

 
1,526,963

 
1,525,281

 
1,494,274

 
116,965

 
118,647

 
149,654

Accumulated other comprehensive income (loss)
43,448

 
23,887

 
(9,427
)
 
(20,282
)
 
19,561

 
52,875

 
63,730

Total stockholders’ equity
1,687,376

 
1,550,850

 
1,515,854

 
1,473,992

 
136,526

 
171,522

 
213,384

Goodwill and core deposit intangible, net
(385,533
)
 
(337,134
)
 
(338,828
)
 
(342,243
)
 
(48,399
)
 
(46,705
)
 
(43,290
)
Tangible stockholders’ equity
$
1,301,843

 
1,213,716

 
1,177,026

 
1,131,749

 
88,127

 
124,817

 
170,094

Stockholders’ equity to total assets
13.31
%
 
12.84
%
 
12.51
%
 
12.39
%
 
 
 
 
 
 
Tangible stockholders’ equity to total tangible assets
10.59
%
 
10.34
%
 
9.99
%
 
9.79
%
 
 
 
 
 
 
Book value per common share
$
19.48

 
18.33

 
17.93

 
17.44

 
1.15

 
1.55

 
2.04

Tangible book value per common share
$
15.03

 
14.35

 
13.93

 
13.39

 
0.68

 
1.10

 
1.64


Tangible stockholders’ equity of $1.302 billion at June 30, 2019 increased $88.1 million compared to the prior quarter which was the result of $87.1 million of Company stock issued for the acquisition of FNB, earnings retention

6



and an increase in other comprehensive income; such increases more than offset the increase in goodwill and core deposits associated with the acquisition. Tangible stockholders’ equity increased $170 million over the prior year second quarter which was the result of earnings retention, an increase in other comprehensive income, and the impact from the FNB acquisition which was offset by a decrease of $25.5 million from the cumulative-effect adjustments related to the adoption of new accounting standards. Tangible book value per common share of $15.03 at current quarter end increased $0.68 per share from the prior quarter and increased $1.64 per share from a year ago.

Cash Dividends
On June 25, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.27 per share. The dividend was payable July 18, 2019 to shareholders of record on July 9, 2019. The dividend was the 137th consecutive quarterly dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.


7



Operating Results for Three Months Ended June 30, 2019 
Compared to March 31, 2019, and June 30, 2018

Income Summary
 
Three Months ended
 
$ Change from
(Dollars in thousands)
Jun 30,
2019
 
Mar 31,
2019
 
Jun 30,
2018
 
Mar 31,
2019
 
Jun 30,
2018
Net interest income
 
 
 
 
 
 
 
 
 
Interest income
$
132,385

 
126,116

 
117,715

 
6,269

 
14,670

Interest expense
12,089

 
10,904

 
9,161

 
1,185

 
2,928

Total net interest income
120,296

 
115,212

 
108,554

 
5,084

 
11,742

Non-interest income
 
 
 
 
 
 
 
 
 
Service charges and other fees
20,025

 
18,015

 
18,804

 
2,010

 
1,221

Miscellaneous loan fees and charges
1,192

 
967

 
2,243

 
225

 
(1,051
)
Gain on sale of loans
7,762

 
5,798

 
8,142

 
1,964

 
(380
)
Gain (loss) on sale of investments
134

 
213

 
(56
)
 
(79
)
 
190

Other income
1,721

 
3,481

 
2,695

 
(1,760
)
 
(974
)
Total non-interest income
30,834

 
28,474

 
31,828

 
2,360

 
(994
)
Total income
$
151,130

 
143,686

 
140,382

 
7,444

 
10,748

Net interest margin (tax-equivalent)
4.33
%
 
4.34
%
 
4.17
%
 
 
 
 

Net Interest Income
The current quarter net interest income of $120 million increased $5.1 million, or 4 percent, over the prior quarter and increased $11.7 million, or 11 percent, from the prior year second quarter. The increase in net interest income over the prior quarter and prior year second quarter was primarily driven by an increase in interest income on commercial loans. Interest income on commercial loans increased $4.5 million, or 5 percent, from the prior quarter and increased $12.2 million, or 16 percent, from the prior year second quarter.

The current quarter interest expense of $12.1 million increased $1.2 million, or 11 percent, over the prior quarter which was driven by the increase in FHLB advances which supplemented the liquidity needs during the current quarter. The current quarter interest expense increased $3.0 million, or 32 percent, from the prior year second quarter and was primarily due to the increased amount of deposits and borrowings. The total cost of funding (including non-interest bearing deposits) for the current quarter was 45 basis points compared to 43 basis points for the prior quarter and 36 basis points for the prior year second quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.33 percent compared to 4.34 percent in the prior quarter. The yield on loans increased 2 basis points and was offset by the 2 basis points increase in funding cost related to the increased short-term borrowings while the cost of core deposits remained unchanged. The current quarter net interest margin included 5 basis points of discount accretion on acquired loans compared to 6 basis points in the prior quarter. The current quarter also included 1 basis point from the recovery of interest on loans previously placed on non-accrual compared to 2 basis points in the prior quarter. Excluding the 5 basis points from discount accretion and 1 basis point from non-accrual interest, the core net interest margin was 4.27 percent compared to 4.26 in the prior quarter and 4.11 percent in the prior year ago second quarter. The current quarter net interest margin increased 16 basis points over the prior year second quarter net interest margin of 4.17 percent. The increase in the margin from the prior year second quarter resulted from the remix of earning assets to higher yielding loans and the increased yields on the loan portfolio which more than offset the increase in funding costs. “The stable net interest margin reflects discipline in loan

8



pricing by each of the Bank divisions,” said Ron Copher, Chief Financial Officer. “In addition, the Bank divisions continue to focus on growing a low-cost core deposit base, especially non-interest bearing deposits.”                                                                                                                                               

Non-interest Income
Non-interest income for the current quarter totaled $30.8 million which was an increase of $2.4 million, or 8 percent, over the prior quarter and a decrease of $994 thousand, or 3 percent, over the same quarter last year. Service charges and other fees of $20.0 million for the current quarter increased $2.0 million, or 11 percent, from the prior quarter due primarily to seasonality. Service charges and other fees for the current quarter increased $1.2 million, or 6 percent, from the prior year second quarter which was due to the increased number of accounts driven by organic growth. Gain on the sale of loans of $7.8 million, increased $2.0 million, or 34 percent, compared to the prior quarter as a result of seasonality.

Non-interest Expense Summary
 
Three Months ended
 
$ Change from
(Dollars in thousands)
Jun 30,
2019
 
Mar 31,
2019
 
Jun 30,
2018
 
Mar 31,
2019
 
Jun 30,
2018
Compensation and employee benefits
$
51,973

 
52,728

 
49,023

 
(755
)
 
2,950

Occupancy and equipment
8,180

 
8,437

 
7,662

 
(257
)
 
518

Advertising and promotions
2,767

 
2,388

 
2,530

 
379

 
237

Data processing
4,062

 
3,892

 
4,241

 
170

 
(179
)
Other real estate owned
191

 
139

 
211

 
52

 
(20
)
Regulatory assessments and insurance
1,848

 
1,285

 
1,329

 
563

 
519

Core deposit intangibles amortization
1,865

 
1,694

 
1,748

 
171

 
117

Other expenses
15,284

 
12,267

 
15,051

 
3,017

 
233

Total non-interest expense
$
86,170

 
82,830

 
81,795

 
3,340

 
4,375


Total non-interest expense of $86.2 million for the current quarter increased $3.3 million, or 4 percent, over the prior quarter and increased $4.4 million, or 5 percent, over the prior year second quarter. Compensation and employee benefits increased by $2.9 million, or 6 percent, from the prior year second quarter due to the acquisition and an increased number of employees driven by organic growth. Occupancy and equipment expense increased $518 thousand or 7 percent, over the prior year second quarter as a result of the current year acquisition and general cost increases. Other expenses of $15.3 million, increased $3.0 million, or 25 percent, from the prior quarter and was primarily attributable to acquisition-related expenses. Acquisition-related expenses were $1.8 million during the current quarter compared to $214 thousand in the prior quarter and $2.9 million in the prior year second quarter.

Federal and State Income Tax Expense
Tax expense during the second quarter of 2019 was $12.6 million, an increase of $901 thousand, or 8 percent, compared to the prior quarter and an increase of $3.1 million, or 33 percent, from the prior year second quarter. The effective tax rate in the current and prior quarter was 19 percent which compares to 19 percent in the prior quarter and 18 percent in the prior year second quarter.

Efficiency Ratio
The current quarter efficiency ratio was 54.50 percent, an 87 basis points improvement from the prior quarter efficiency ratio of 55.37 percent and was driven by controlling operating costs combined with the increase in net interest income. The current quarter efficiency ratio improved 94 basis points from the prior year second quarter efficiency ratio of 55.44 percent and was driven by the increase in net interest income that more than offset the increased operating costs as a result of the Company’s growth.

9



Operating Results for Six Months Ended June 30, 2019
Compared to June 30, 2018

Income Summary
 
Six Months ended
 
 
 
 
(Dollars in thousands)
Jun 30,
2019
 
Jun 30,
2018
 
$ Change
 
% Change
Net interest income
 
 
 
 
 
 
 
Interest income
$
258,501

 
$
220,781

 
$
37,720

 
17
 %
Interest expense
22,993

 
16,935

 
6,058

 
36
 %
Total net interest income
235,508

 
203,846

 
31,662

 
16
 %
Non-interest income
 
 
 
 
 
 
 
Service charges and other fees
38,040

 
35,675

 
2,365

 
7
 %
Miscellaneous loan fees and charges
2,159

 
3,720

 
(1,561
)
 
(42
)%
Gain on sale of loans
13,560

 
14,239

 
(679
)
 
(5
)%
Loss on sale of investments
347

 
(389
)
 
736

 
(189
)%
Other income
5,202

 
4,669

 
533

 
11
 %
Total non-interest income
59,308

 
57,914

 
1,394

 
2
 %
 
$
294,816

 
$
261,760

 
$
33,056

 
13
 %
Net interest margin (tax-equivalent)
4.33
%
 
4.14
%
 
 
 
 

Net Interest Income
Net interest income for the the first six months of 2019 increased $31.7 million, or 16 percent, from the first six months of 2018 and was primarily attributable to a $30.2 million increase in interest income from commercial loans. Interest expense of $23.0 million for the first half of 2019 increased $6.1 million, or 36 percent over the prior year same period as a result of increased deposits and borrowings combined with interest rate increases. The total funding cost (including non-interest bearing deposits) for 2019 was 44 basis points compared to 36 basis points for 2018.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first six months of 2019 was 4.33 percent, a 19 basis points increase from the net interest margin of 4.14 percent for the first half of 2018. The increase in the margin was principally due to a shift in earning assets to higher yielding loans along with an increase in yields on the loan portfolio combined with relatively stable cost of funds.

Non-interest Income
Non-interest income of $59.3 million for the first six months of 2019 increased $1.4 million, or 2 percent, over the same period last year. Service charges and other fees of $38.0 million for 2019 increased $2.4 million, or 7 percent, from the prior year as a result of an increased number of deposit accounts from organic growth and acquisitions.


10



Non-interest Expense Summary
 
Six Months ended
 
 
 
 
(Dollars in thousands)
Jun 30,
2019
 
Jun 30,
2018
 
$ Change
 
% Change
Compensation and employee benefits
$
104,701

 
$
94,744

 
$
9,957

 
11
 %
Occupancy and equipment
16,617

 
14,936

 
1,681

 
11
 %
Advertising and promotions
5,155

 
4,700

 
455

 
10
 %
Data processing
7,954

 
8,208

 
(254
)
 
(3
)%
Other real estate owned
330

 
283

 
47

 
17
 %
Regulatory assessments and insurance
3,133

 
2,535

 
598

 
24
 %
Core deposit intangibles amortization
3,559

 
2,804

 
755

 
27
 %
Other expenses
27,551

 
27,212

 
339

 
1
 %
Total non-interest expense
$
169,000

 
$
155,422

 
$
13,578

 
9
 %

Total non-interest expense of $169 million for the first half of 2019 increased $13.6 million, or 9 percent, over the prior year first half. Compensation and employee benefits for the first six months of 2019 increased $10.0 million, or 11 percent, from the same period last year due to the increased number of employees from acquisitions and organic growth combined with annual salary increases. Occupancy and equipment expense for the first half of 2019 increased $1.7 million, or 11 percent from the prior year as a result of increased cost from acquisitions and general cost increases.

Provision for Loan Losses
The provision for loan losses was $57 thousand for the first half of 2019, a decrease of $4.7 million from the same period in the prior year. Net charge-offs during the first half of 2019 were $2.2 million compared to $3.5 million during the same period in 2018.

Federal and State Income Tax Expense
Tax expense of $24.2 million in the first half of 2019 increased $6.4 million, or 36 percent, over the prior year same period. The effective tax rate year-to-date in 2019 was 19 percent compared to 18 percent in the prior year same period.

Efficiency Ratio
The efficiency ratio of 54.93 percent for the first six months of 2019 improved 161 basis points from the prior year first six months efficiency ratio of 56.54 percent and was driven by the increase in net interest income that more than offset the increased operating costs.


11



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;
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.

12




Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, July 19, 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 7382835. To participate on the webcast, log on to: https://edge.media-server.com/m6/p/g6hp4cea. 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 7382835 by August 2, 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 operating 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; The Foothills Bank, Yuma, operating in Arizona; and First Community Bank Utah, Layton, operating in Utah.



13



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

(Dollars in thousands, except per share data)
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
June 30,
2018
Assets
 
 
 
 
 
 
 
Cash on hand and in banks
$
181,526

 
139,333

 
161,782

 
174,239

Federal funds sold

 
115

 

 

Interest bearing cash deposits
49,683

 
63,079

 
42,008

 
193,893

Cash and cash equivalents
231,209

 
202,527

 
203,790

 
368,132

Debt securities, available-for-sale
2,470,634

 
2,522,322

 
2,571,663

 
2,177,352

Debt securities, held-to-maturity
252,097

 
255,572

 
297,915

 
620,409

Total debt securities
2,722,731

 
2,777,894

 
2,869,578

 
2,797,761

Loans held for sale, at fair value
54,711

 
29,389

 
33,156

 
53,788

Loans receivable
8,841,777

 
8,326,070

 
8,287,549

 
7,948,672

Allowance for loan and lease losses
(129,054
)
 
(129,786
)
 
(131,239
)
 
(131,564
)
Loans receivable, net
8,712,723

 
8,196,284

 
8,156,310

 
7,817,108

Premises and equipment, net
296,915

 
277,619

 
241,528

 
240,373

Other real estate owned
7,281

 
8,125

 
7,480

 
13,616

Accrued interest receivable
58,567

 
57,367

 
54,408

 
55,973

Deferred tax asset
3,371

 
12,554

 
23,564

 
34,211

Core deposit intangible, net
54,646

 
47,548

 
49,242

 
52,708

Goodwill
330,887

 
289,586

 
289,586

 
289,535

Non-marketable equity securities
23,031

 
16,435

 
27,871

 
26,107

Bank-owned life insurance
93,543

 
82,819

 
82,320

 
81,379

Other assets
86,746

 
75,632

 
76,651

 
66,953

Total assets
$
12,676,361

 
12,073,779

 
12,115,484

 
11,897,644

Liabilities
 
 
 
 
 
 
 
Non-interest bearing deposits
$
3,265,077

 
3,051,119

 
3,001,178

 
2,914,885

Interest bearing deposits
6,589,798

 
6,536,996

 
6,492,589

 
6,508,690

Securities sold under agreements to repurchase
494,651

 
489,620

 
396,151

 
361,515

FHLB advances
319,996

 
154,683

 
440,175

 
395,037

Other borrowed funds
14,765

 
14,738

 
14,708

 
9,917

Subordinated debentures
139,912

 
134,048

 
134,051

 
134,058

Accrued interest payable
5,091

 
4,709

 
4,252

 
3,952

Other liabilities
159,695

 
137,016

 
116,526

 
95,598

Total liabilities
10,988,985

 
10,522,929

 
10,599,630

 
10,423,652

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
866

 
846

 
845

 
845

Paid-in capital
1,139,289

 
1,051,299

 
1,051,253

 
1,049,724

Retained earnings - substantially restricted
503,773

 
474,818

 
473,183

 
443,705

Accumulated other comprehensive income (loss)
43,448

 
23,887

 
(9,427
)
 
(20,282
)
Total stockholders’ equity
1,687,376

 
1,550,850

 
1,515,854

 
1,473,992

Total liabilities and stockholders’ equity
$
12,676,361

 
12,073,779

 
12,115,484

 
11,897,644



14



Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations

 
Three Months ended
 
Six Months ended
(Dollars in thousands, except per share data)
June 30,
2019
 
March 31,
2019
 
June 30,
2018
 
June 30,
2019
 
June 30,
2018
Interest Income
 
 
 
 
 
 
 
 
 
Debt securities
$
21,892

 
21,351

 
22,370

 
43,243

 
42,512

Residential real estate loans
11,410

 
10,779

 
10,149

 
22,189

 
18,934

Commercial loans
88,043

 
83,539

 
75,824

 
171,582

 
141,339

Consumer and other loans
11,040

 
10,447

 
9,372

 
21,487

 
17,996

Total interest income
132,385

 
126,116

 
117,715

 
258,501

 
220,781

Interest Expense
 
 
 
 
 
 
 
 
 
Deposits
5,624

 
5,341

 
4,617

 
10,965

 
8,533

Securities sold under agreements to repurchase
886

 
802

 
486

 
1,688

 
971

Federal Home Loan Bank advances
3,847

 
3,055

 
2,513

 
6,902

 
4,602

Other borrowed funds
38

 
38

 
26

 
76

 
42

Subordinated debentures
1,694

 
1,668

 
1,519

 
3,362

 
2,787

Total interest expense
12,089

 
10,904

 
9,161

 
22,993

 
16,935

Net Interest Income
120,296

 
115,212

 
108,554

 
235,508

 
203,846

Provision for loan losses

 
57

 
4,718

 
57

 
5,513

Net interest income after provision for loan losses
120,296

 
115,155

 
103,836

 
235,451

 
198,333

Non-Interest Income
 
 
 
 
 
 
 
 
 
Service charges and other fees
20,025

 
18,015

 
18,804

 
38,040

 
35,675

Miscellaneous loan fees and charges
1,192

 
967

 
2,243

 
2,159

 
3,720

Gain on sale of loans
7,762

 
5,798

 
8,142

 
13,560

 
14,239

Gain (loss) on sale of debt securities
134

 
213

 
(56
)
 
347

 
(389
)
Other income
1,721

 
3,481

 
2,695

 
5,202

 
4,669

Total non-interest income
30,834

 
28,474

 
31,828

 
59,308

 
57,914

Non-Interest Expense
 
 
 
 
 
 
 
 
 
Compensation and employee benefits
51,973

 
52,728

 
49,023

 
104,701

 
94,744

Occupancy and equipment
8,180

 
8,437

 
7,662

 
16,617

 
14,936

Advertising and promotions
2,767

 
2,388

 
2,530

 
5,155

 
4,700

Data processing
4,062

 
3,892

 
4,241

 
7,954

 
8,208

Other real estate owned
191

 
139

 
211

 
330

 
283

Regulatory assessments and insurance
1,848

 
1,285

 
1,329

 
3,133

 
2,535

Core deposit intangibles amortization
1,865

 
1,694

 
1,748

 
3,559

 
2,804

Other expenses
15,284

 
12,267

 
15,051

 
27,551

 
27,212

Total non-interest expense
86,170

 
82,830

 
81,795

 
169,000

 
155,422

Income Before Income Taxes
64,960

 
60,799

 
53,869

 
125,759

 
100,825

Federal and state income tax expense
12,568

 
11,667

 
9,485

 
24,235

 
17,882

Net Income
$
52,392

 
49,132

 
44,384

 
101,524

 
82,943


15



Glacier Bancorp, Inc.
Average Balance Sheets

 
Three Months ended
 
6/30/2019
 
3/31/2019
(Dollars in thousands)
Average
Balance
 
Interest &
Dividends
 
Average
Yield/
Rate
 
Average
Balance
 
Interest &
Dividends
 
Average
Yield/
Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
Residential real estate loans
$
938,467

 
$
11,410

 
4.86
%
 
$
917,324

 
$
10,779

 
4.70
%
Commercial loans 1
6,803,541

 
89,191

 
5.26
%
 
6,524,190

 
84,613

 
5.26
%
Consumer and other loans
868,733

 
11,040

 
5.10
%
 
839,011

 
10,447

 
5.05
%
Total loans 2
8,610,741

 
111,641

 
5.20
%
 
8,280,525

 
105,839

 
5.18
%
Tax-exempt debt securities 3
957,177

 
9,982

 
4.17
%
 
960,569

 
9,950

 
4.14
%
Taxable debt securities 4
1,911,173

 
14,246

 
2.98
%
 
1,845,677

 
13,729

 
2.98
%
Total earning assets
11,479,091

 
135,869

 
4.75
%
 
11,086,771

 
129,518

 
4.74
%
Goodwill and intangibles
351,466

 
 
 
 
 
337,963

 
 
 
 
Non-earning assets
584,459

 
 
 
 
 
520,353

 
 
 
 
Total assets
$
12,415,016

 
 
 
 
 
$
11,945,087

 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
$
3,084,404

 
$

 
%
 
$
2,943,770

 
$

 
%
NOW and DDA accounts
2,394,505

 
985

 
0.17
%
 
2,320,928

 
961

 
0.17
%
Savings accounts
1,389,548

 
253

 
0.07
%
 
1,359,807

 
234

 
0.07
%
Money market deposit accounts
1,662,545

 
1,125

 
0.27
%
 
1,690,305

 
1,010

 
0.24
%
Certificate accounts
902,134

 
2,222

 
0.99
%
 
905,005

 
2,014

 
0.90
%
Total core deposits
9,433,136

 
4,585

 
0.19
%
 
9,219,815

 
4,219

 
0.19
%
Wholesale deposits 5
162,495

 
1,039

 
2.56
%
 
169,361

 
1,122

 
2.69
%
FHLB advances
476,204

 
3,847

 
3.20
%
 
352,773

 
3,055

 
3.46
%
Repurchase agreements and other borrowed funds
593,990

 
2,618

 
1.77
%
 
556,325

 
2,508

 
1.83
%
Total funding liabilities
10,665,825

 
12,089

 
0.45
%
 
10,298,274

 
10,904

 
0.43
%
Other liabilities
109,480

 
 
 
 
 
116,143

 
 
 
 
Total liabilities
10,775,305

 
 
 
 
 
10,414,417

 
 
 
 
Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
Common stock
860

 
 
 
 
 
846

 
 
 
 
Paid-in capital
1,110,138

 
 
 
 
 
1,051,261

 
 
 
 
Retained earnings
500,015

 
 
 
 
 
471,626

 
 
 
 
Accumulated other comprehensive income
28,698

 
 
 
 
 
6,937

 
 
 
 
Total stockholders’ equity
1,639,711

 
 
 
 
 
1,530,670

 
 
 
 
Total liabilities and stockholders’ equity
$
12,415,016

 
 
 
 
 
$
11,945,087

 
 
 
 
Net interest income (tax-equivalent)
 
 
$
123,780

 
 
 
 
 
$
118,614

 
 
Net interest spread (tax-equivalent)
 
 
 
 
4.30
%
 
 
 
 
 
4.31
%
Net interest margin (tax-equivalent)
 
 
 
 
4.33
%
 
 
 
 
 
4.34
%
______________________________
1 
Includes tax effect of $1.1 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2019 and March 31, 2019.
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 $2.1 million and $2.0 million on tax-exempt debt securities income for the three months ended June 30, 2019 and March 31, 2019, respectively.
4 
Includes tax effect of $294 thousand and $293 thousand on federal income tax credits for the three months ended June 30, 2019 and March 31, 2019.
5 
Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.



16



Glacier Bancorp, Inc.
Average Balance Sheets (continued)

 
Three Months ended
 
6/30/2019
 
6/30/2018
(Dollars in thousands)
Average
Balance
 
Interest &
Dividends
 
Average
Yield/
Rate
 
Average
Balance
 
Interest &
Dividends
 
Average
Yield/
Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
Residential real estate loans
$
938,467

 
$
11,410

 
4.86
%
 
$
874,839

 
$
10,149

 
4.64
%
Commercial loans 1
6,803,541

 
89,191

 
5.26
%
 
6,158,095

 
76,834

 
5.00
%
Consumer and other loans
868,733

 
11,040

 
5.10
%
 
761,751

 
9,372

 
4.93
%
Total loans 2
8,610,741

 
111,641

 
5.20
%
 
7,794,685

 
96,355

 
4.96
%
Tax-exempt debt securities 3
957,177

 
9,982

 
4.17
%
 
1,085,520

 
12,634

 
4.66
%
Taxable debt securities 4
1,911,173

 
14,246

 
2.98
%
 
1,931,846

 
12,630

 
2.62
%
Total earning assets
11,479,091

 
135,869

 
4.75
%
 
10,812,051

 
121,619

 
4.51
%
Goodwill and intangibles
351,466

 
 
 
 
 
343,201

 
 
 
 
Non-earning assets
584,459

 
 
 
 
 
473,750

 
 
 
 
Total assets
$
12,415,016

 
 
 
 
 
$
11,629,002

 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
$
3,084,404

 
$

 
%
 
$
2,800,719

 
$

 
%
NOW and DDA accounts
2,394,505

 
985