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Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended June 30, 2023
Источник: Nasdaq GlobeNewswire / 20 июл 2023 15:30:02 America/Chicago
2nd Quarter 2023 Highlights:
- Net income was $55.0 million for the current quarter, a decrease of $6.2 million, or 10 percent, from the prior quarter net income of $61.2 million. Net income for the current quarter decreased $21.4 million, or 28 percent, from the prior year second quarter net income of $76.4 million.
- Interest income of $247 million in the current quarter increased $15.5 million, or 7 percent, over the prior quarter interest income of $232 million. Interest income in the current quarter increased $47.7 million, or 24 percent, over the prior year second quarter.
- Total deposits and retail repurchase agreements of $21.365 billion at the current quarter end increased $25.5 million, or 12 basis points, during the current quarter.
- The loan portfolio of $15.955 billion, increased $436 million, or 11 percent annualized, during the current quarter.
- The loan yield for the current quarter of 5.12 percent, increased 10 basis points, compared to 5.02 percent in the prior quarter and increased 60 basis points from the prior year second quarter loan yield of 4.52 percent.
- Non-performing assets as a percentage of subsidiary assets was 0.12 percent in the current and prior quarter, compared to 0.16 percent in the prior year second quarter.
- The Company declared a quarterly dividend of $0.33 per share. The Company has declared 153 consecutive quarterly dividends and has increased the dividend 49 times.
First Half 2023 Highlights
- Net Income for the first half of 2023 was $116 million, a decrease of $28.0 million, or 19 percent, from the $144 million net income for the first half of the prior year.
- Interest income for the first six months of 2023 was $479 million, an increase of $89.1 million, or 23 percent over the first half of the prior year interest income of $390 million.
- The loan portfolio of $15.955 billion, increased $708 million, or 9 percent annualized, during the first half of the current year. The loan portfolio, excluding the Paycheck Protection Program (“PPP”) loans, increased $1.121 billion, or 17 percent annualized, during the first half of the prior year.
- The loan yield was 5.07 percent for the first half of the current year, an increase of 51 basis points from the first half of the prior year loan yield of 4.56 percent.
- Stockholders’ equity of $2.927 billion increased $83.2 million, or 3 percent, during the first six months of the current year.
- Dividends declared in the first half of 2023 were $0.66 per share.
Financial Summary
At or for the Three Months ended At or for the Six Months ended (Dollars in thousands, except per share and market data) Jun 30,
2023Mar 31,
2023Jun 30,
2022Jun 30,
2023Jun 30,
2022Operating results Net income $ 54,955 61,211 76,392 116,166 144,187 Basic earnings per share $ 0.50 0.55 0.69 1.05 1.30 Diluted earnings per share $ 0.50 0.55 0.69 1.05 1.30 Dividends declared per share $ 0.33 0.33 0.33 0.66 0.66 Market value per share Closing $ 31.17 42.01 47.42 31.17 47.42 High $ 42.21 50.03 51.40 50.03 60.69 Low $ 26.77 37.07 44.43 26.77 44.43 Selected ratios and other data Number of common stock shares outstanding 110,873,887 110,868,713 110,766,287 110,873,887 110,766,287 Average outstanding shares - basic 110,870,964 110,824,648 110,765,379 110,847,806 110,745,017 Average outstanding shares - diluted 110,875,535 110,881,708 110,794,982 110,879,654 110,799,368 Return on average assets (annualized) 0.81% 0.93% 1.16% 0.87% 1.11% Return on average equity (annualized) 7.52% 8.54% 10.55% 8.03% 9.76% Efficiency ratio 62.73% 60.39% 55.74% 61.52% 56.42% Dividend payout 66.00% 60.00% 47.83% 62.86% 50.77% Loan to deposit ratio 79.92% 77.09% 66.26% 79.92% 66.26% Number of full time equivalent employees 3,369 3,390 3,439 3,369 3,439 Number of locations 222 222 224 222 224 Number of ATMs 274 263 274 274 274 KALISPELL, Mont., July 20, 2023 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $55.0 million for the current quarter, a decrease of $21.4 million, or 28 percent, from the $76.4 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.50 per share, a decrease of 28 percent from the prior year second quarter diluted earnings per share of $0.69. The decrease in net income compared to the prior quarter and prior year second quarter is primarily due to the continued increase in funding costs. “The growth in total deposits and repurchase agreements this quarter underscores the effectiveness of our team in successfully meeting the needs of local deposit relationships in this highly competitive environment,” said Randy Chesler, President and Chief Executive Officer. “Our deep local relationships, strong capital position and consistent financial performance helped set the stage for this growth.”
Net income for the six months ended June 30, 2023 was $116 million, a decrease of $28.0 million, or 19 percent, from the $144 million for the first six months in the prior year. Diluted earnings per share for the first half of 2023 was $1.05 per share, a decrease of 19 percent from the prior year first half diluted earnings per share of $1.30.
Asset Summary
$ Change from (Dollars in thousands) Jun 30,
2023Mar 31,
2023Dec 31,
2022Jun 30,
2022Mar 31,
2023Dec 31,
2022Jun 30,
2022Cash and cash equivalents $ 1,051,320 1,529,534 401,995 415,406 (478,214 ) 649,325 635,914 Debt securities, available-for-sale 4,999,820 5,198,313 5,307,307 6,209,199 (198,493 ) (307,487 ) (1,209,379 ) Debt securities, held-to-maturity 3,608,289 3,664,393 3,715,052 3,788,486 (56,104 ) (106,763 ) (180,197 ) Total debt securities 8,608,109 8,862,706 9,022,359 9,997,685 (254,597 ) (414,250 ) (1,389,576 ) Loans receivable Residential real estate 1,588,175 1,508,403 1,446,008 1,261,119 79,772 142,167 327,056 Commercial real estate 10,220,751 9,992,019 9,797,047 9,310,070 228,732 423,704 910,681 Other commercial 2,888,810 2,804,104 2,799,668 2,685,392 84,706 89,142 203,418 Home equity 862,240 829,844 822,232 773,582 32,396 40,008 88,658 Other consumer 394,986 384,242 381,857 369,592 10,744 13,129 25,394 Loans receivable 15,954,962 15,518,612 15,246,812 14,399,755 436,350 708,150 1,555,207 Allowance for credit losses (189,385 ) (186,604 ) (182,283 ) (172,963 ) (2,781 ) (7,102 ) (16,422 ) Loans receivable, net 15,765,577 15,332,008 15,064,529 14,226,792 433,569 701,048 1,538,785 Other assets 2,102,673 2,078,186 2,146,492 2,050,122 24,487 (43,819 ) 52,551 Total assets $ 27,527,679 27,802,434 26,635,375 26,690,005 (274,755 ) 892,304 837,674 Total debt securities of $8.608 billion at June 30, 2023 decreased $255 million, or 3 percent, during the current quarter and decreased $1.390 billion, or 14 percent, from the prior year second quarter. The Company continues to utilize cash flow from the securities portfolio to primarily fund loan growth. Debt securities represented 31 percent of total assets at June 30, 2023, compared to 34 percent at December 31, 2022, and 37 percent at June 30, 2022.
The loan portfolio of $15.955 billion increased $436 million, or 11 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $229 million, or 9 percent annualized. The loan portfolio increased $1.555 billion, or 11 percent, from the prior year second quarter with the largest dollar increase in commercial real estate loans which increased $911 million, or 10 percent.
Credit Quality Summary
At or for the Six
Months endedAt or for the Three
Months endedAt or for the
Year endedAt or for the Six
Months ended(Dollars in thousands) Jun 30,
2023Mar 31,
2023Dec 31,
2022Jun 30,
2022Allowance for credit losses Balance at beginning of period $ 182,283 182,283 172,665 172,665 Provision for credit losses 11,514 6,260 17,433 2,991 Charge-offs (7,083 ) (3,293 ) (14,970 ) (7,040 ) Recoveries 2,671 1,354 7,155 4,347 Balance at end of period $ 189,385 186,604 182,283 172,963 Provision for credit losses Loan portfolio $ 11,514 6,260 17,433 2,991 Unfunded loan commitments (3,271 ) (790 ) 2,530 2,507 Total provision for credit losses $ 8,243 5,470 19,963 5,498 Other real estate owned $ — — — — Other foreclosed assets 52 31 32 379 Accruing loans 90 days or more past due 3,876 3,545 1,559 5,064 Non-accrual loans 28,094 28,403 31,151 38,523 Total non-performing assets $ 32,022 31,979 32,742 43,966 Non-performing assets as a percentage of subsidiary assets 0.12 % 0.12 % 0.12 % 0.16 % Allowance for credit losses as a percentage of non-performing loans 592 % 584 % 557 % 393 % Allowance for credit losses as a percentage of total loans 1.19 % 1.20 % 1.20 % 1.20 % Net charge-offs as a percentage of total loans 0.03 % 0.01 % 0.05 % 0.02 % Accruing loans 30-89 days past due $ 24,863 24,993 20,967 16,588 U.S. government guarantees included in non-performing assets $ 1,035 2,071 2,312 5,888 Non-performing assets of $32.0 million at June 30, 2023 decreased $11.9 million, or 27 percent, over the prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2023 and March 31, 2023 was 0.12 percent compared to 0.16 percent in the prior year second quarter.
Early stage delinquencies (accruing loans 30-89 days past due) of $24.9 million at June 30, 2023 increased $8.3 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2023 and March 31, 2023 was 0.16 percent, which compared to 0.12 percent from prior year second quarter.
The current quarter credit loss expense of $2.8 million included $5.3 million of credit loss expense from loans and $2.5 million of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at June 30, 2023 was 1.19 percent, compared to 1.20 percent in the prior quarter and the prior year second quarter.
Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio
(Dollars in thousands) Provision for
Credit Losses
LoansNet Charge-Offs
(Recoveries)ACL
as a Percent
of LoansAccruing
Loans 30-89
Days Past Due
as a Percent of
LoansNon-Performing
Assets to
Total Subsidiary
AssetsSecond quarter 2023 $ 5,254 $ 2,473 1.19 % 0.16 % 0.12 % First quarter 2023 6,260 1,939 1.20 % 0.16 % 0.12 % Fourth quarter 2022 6,060 1,968 1.20 % 0.14 % 0.12 % Third quarter 2022 8,382 3,154 1.20 % 0.07 % 0.13 % Second quarter 2022 (1,353 ) 1,843 1.20 % 0.12 % 0.16 % First quarter 2022 4,344 850 1.28 % 0.12 % 0.24 % Fourth quarter 2021 19,301 616 1.29 % 0.38 % 0.26 % Third quarter 2021 2,313 152 1.36 % 0.23 % 0.24 % Net charge-offs for the current quarter were $2.5 million compared to $2.0 million in the prior quarter and $1.8 million for the prior year second quarter. Net charge-offs of $2.5 million included $1.7 million in deposit overdraft net charge-offs and $773 thousand of net loan charge-offs.
The current quarter provision for credit loss expense for loans was $5.3 million which was a decrease of $1.0 million from the prior quarter and a $6.6 million increase from the prior year second quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans.
Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on regulatory classification is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.
Liability Summary
$ Change from (Dollars in thousands) Jun 30,
2023Mar 31,
2023Dec 31,
2022Jun 30,
2022Mar 31,
2023Dec 31,
2022Jun 30,
2022Deposits Non-interest bearing deposits $ 6,458,394 7,001,241 7,690,751 8,061,304 (542,847 ) (1,232,357 ) (1,602,910 ) NOW and DDA accounts 5,154,442 5,156,709 5,330,614 5,432,333 (2,267 ) (176,172 ) (277,891 ) Savings accounts 2,808,571 2,985,351 3,200,321 3,296,561 (176,780 ) (391,750 ) (487,990 ) Money market deposit accounts 3,094,302 3,429,123 3,472,281 4,021,102 (334,821 ) (377,979 ) (926,800 ) Certificate accounts 2,014,104 1,155,494 880,589 968,382 858,610 1,133,515 1,045,722 Core deposits, total 19,529,813 19,727,918 20,574,556 21,779,682 (198,105 ) (1,044,743 ) (2,249,869 ) Wholesale deposits 478,417 420,390 31,999 4,001 58,027 446,418 474,416 Deposits, total 20,008,230 20,148,308 20,606,555 21,783,683 (140,078 ) (598,325 ) (1,775,453 ) Repurchase agreements 1,356,862 1,191,323 945,916 968,197 165,539 410,946 388,665 Deposits and repurchase agreements, total 21,365,092 21,339,631 21,552,471 22,751,880 25,461 (187,379 ) (1,386,788 ) Federal Home Loan Bank advances — 335,000 1,800,000 580,000 (335,000 ) (1,800,000 ) (580,000 ) FRB Bank Term Funding 2,740,000 2,740,000 — — — 2,740,000 2,740,000 Other borrowed funds 75,819 76,185 77,293 66,200 (366 ) (1,474 ) 9,619 Subordinated debentures 132,863 132,822 132,782 132,701 41 81 162 Other liabilities 287,379 251,892 229,524 262,985 35,487 57,855 24,394 Total liabilities $ 24,601,153 24,875,530 23,792,070 23,793,766 (274,377 ) 809,083 807,387 During the current quarter, the Company continued to focus on its diversified deposit and repurchase agreement product offerings. Total deposits and retail repurchase agreements of $21.365 billion at the current quarter end increased $25.5 million, or 12 basis points, during the current quarter. Non-interest bearing deposits were 33 percent of total core deposits at June 30, 2023 compared to 37 percent at December 31, 2022 and June 30, 2022.
During the current quarter, the Company fully paid off its higher rate Federal Home Loan Bank (“FHLB”) advances. The Company’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. The Company has available liquidity of $15.1 billion including cash, borrowing capacity from the FHLB and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.
Stockholders’ Equity Summary
$ Change from (Dollars in thousands, except per share data) Jun 30,
2023Mar 31,
2023Dec 31,
2022Jun 30,
2022Mar 31,
2023Dec 31,
2022Jun 30,
2022Common equity $ 3,357,313 3,337,132 3,312,097 3,223,451 20,181 45,216 133,862 Accumulated other comprehensive loss (430,787 ) (410,228 ) (468,792 ) (327,212 ) (20,559 ) 38,005 (103,575 ) Total stockholders’ equity 2,926,526 2,926,904 2,843,305 2,896,239 (378 ) 83,221 30,287 Goodwill and core deposit intangible, net (1,022,118 ) (1,024,545 ) (1,026,994 ) (1,032,323 ) 2,427 4,876 10,205 Tangible stockholders’ equity $ 1,904,408 1,902,359 1,816,311 1,863,916 2,049 88,097 40,492 Stockholders’ equity to total assets 10.63 % 10.53 % 10.67 % 10.85 % Tangible stockholders’ equity to total tangible assets 7.18 % 7.10 % 7.09 % 7.26 % Book value per common share $ 26.40 26.40 25.67 26.15 — 0.73 0.25 Tangible book value per common share $ 17.18 17.16 16.40 16.83 0.02 0.78 0.35 Tangible stockholders’ equity was $1.904 billion at June 30, 2023 increased $2.0 million, or 1 basis point, compared to the prior quarter and increased $88.0 million, or 5 percent, from the prior year end, which was primarily due to earnings retention and the decrease in the net unrealized loss (after-tax) on the AFS debt securities. Tangible book value per common share of $17.18 at the current quarter end increased $0.78 per share, or 5 percent, from the prior year end. The tangible book value per common share increased $0.35 per share from the prior year second quarter.
Cash Dividends
On June 28, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The current quarter dividend of $0.33 per share was consistent with the dividend declared in the prior quarter and the prior year second quarter. The dividend was payable July 20, 2023 to shareholders of record on July 11, 2023. The dividend was the Company’s 153rd consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.Operating Results for Three Months Ended June 30, 2023
Compared to March 31, 2023, and June 30, 2022Income Summary
Three Months ended $ Change from (Dollars in thousands) Jun 30,
2023Mar 31,
2023Jun 30,
2022Mar 31,
2023Jun 30,
2022Net interest income Interest income $ 247,365 231,888 199,637 15,477 47,728 Interest expense 75,385 45,696 6,199 29,689 69,186 Total net interest income 171,980 186,192 193,438 (14,212 ) (21,458 ) Non-interest income Service charges and other fees 18,967 17,771 17,309 1,196 1,658 Miscellaneous loan fees and charges 4,162 3,967 3,850 195 312 Gain on sale of loans 3,528 2,400 4,996 1,128 (1,468 ) Loss on sale of debt securities (23 ) (114 ) (260 ) 91 237 Other income 2,445 3,871 2,385 (1,426 ) 60 Total non-interest income 29,079 27,895 28,280 1,184 799 Total income 201,059 214,087 221,718 (13,028 ) (20,659 ) Net interest margin (tax-equivalent) 2.74 % 3.08 % 3.23 % Net Interest Income
The current quarter interest income of $247 million increased $15.5 million, or 7 percent, over the prior quarter and was driven primarily by the increase in the loan portfolio and an increase in loan yields. The current quarter interest income increased $47.7 million, or 24 percent, over the prior year second quarter also due to loan growth and increased loan yields. The loan yield of 5.12 percent in the current quarter increased 10 basis points from the prior quarter loan yield of 5.02 percent and increased 60 basis points from the prior year second quarter loan yield of 4.52 percent.The current quarter interest expense of $75.4 million increased $29.7 million, or 65 percent, over the prior quarter and increased $69.2 million, or 1,116 percent, over the prior year second quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 0.57 percent for the current quarter compared to 0.23 percent in the prior quarter and 0.06 percent for the prior year second quarter. The total cost of funding (including non-interest bearing deposits) was 1.26 percent in the current quarter compared to 0.79 percent in the prior quarter and 0.11 percent in the prior year second quarter which was the result of the increased deposit and borrowing rates.
The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.74 percent compared to 3.08 percent in the prior quarter and 3.23 percent in the prior year second quarter. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.72 percent compared to 3.07 percent in the prior quarter and 3.16 percent in the prior year second quarter. The core net interest margin decreased 35 basis points in the current quarter primarily as a result of increased deposit and borrowing rates.
Non-interest Income
Non-interest income for the current quarter totaled $29.1 million which was an increase of $1.2 million, or 4 percent, over the prior quarter which was primarily driven by an increase in service charges and gain on the sale of residential loans. Gain on the sale of residential loans of $3.5 million for the current quarter increased $1.1 million, or 47 percent, compared to the prior quarter and decreased $1.5 million, or 29 percent, from the prior year second quarter. Service charges and other fees of $19.0 million in the current quarter increased $1.2 million, or 7 percent, over the prior quarter and increased $1.7 million, or 10 percent, over the prior year second quarter.Non-interest Expense Summary
Three Months ended $ Change from (Dollars in thousands) Jun 30,
2023Mar 31,
2023Jun 30,
2022Mar 31,
2023Jun 30,
2022Compensation and employee benefits $ 78,764 81,477 79,803 (2,713 ) (1,039 ) Occupancy and equipment 10,827 11,665 10,766 (838 ) 61 Advertising and promotions 3,733 4,235 3,766 (502 ) (33 ) Data processing 8,402 8,109 7,553 293 849 Other real estate owned and foreclosed assets 14 12 6 2 8 Regulatory assessments and insurance 5,314 4,903 3,085 411 2,229 Core deposit intangibles amortization 2,427 2,449 2,665 (22 ) (238 ) Other expenses 21,123 22,132 21,877 (1,009 ) (754 ) Total non-interest expense $ 130,604 134,982 129,521 (4,378 ) 1,083 Total non-interest expense of $131 million for the current quarter decreased $4.4 million, or 3 percent, over the prior quarter and increased $1.1 million, or 1 percent, over the prior year second quarter. Compensation and employee benefits expense of $78.8 million for the current quarter decreased $2.7 million, or 3 percent, from the prior quarter and decreased $1.0 million, or 1 percent, over the prior year second quarter which was driven primarily by decreases in accrued expenses for employee benefits. Regulatory assessments and insurance of $5.3 million, increased $2.2 million, or 72 percent, over the prior year second quarter and was primarily due to the FDIC uniformly increasing all depository institutions premiums beginning in the prior quarter. “The current quarter reduction in non-interest expense is primarily due to reductions in compensation and related benefits as the Company continues to closely monitor staffing levels and improve operating efficiencies,” said Ron Copher, Chief Financial Officer.
Federal and State Income Tax Expense
Tax expense during the second quarter of 2023 was $12.7 million, a decrease of $303 thousand, or 2 percent, compared to the prior quarter and a decrease of $4.6 million, or 27 percent, from the prior year second quarter. The effective tax rate in the current quarter was 18.8 percent compared to 16.9 percent in the prior quarter and 18.5 percent in the prior year second quarter.Efficiency Ratio
The efficiency ratio was 62.73 percent in the current quarter compared to 60.39 percent in the prior quarter and 55.74 percent in the prior year second quarter. The increase the from prior quarter and prior year second quarter was primarily attributable to the increase in interest expense in the current quarter.Operating Results for Six Months Ended June 30, 2023
Compared to June 30, 2022Income Summary
Six Months ended (Dollars in thousands) Jun 30,
2023Jun 30,
2022$ Change % Change Net interest income Interest income $ 479,253 $ 390,153 $ 89,100 23 % Interest expense 121,081 11,160 109,921 985 % Total net interest income 358,172 378,993 (20,821 ) (5 )% Non-interest income Service charges and other fees 36,738 34,420 2,318 7 % Miscellaneous loan fees and charges 8,129 7,405 724 10 % Gain on sale of loans 5,928 14,011 (8,083 ) (58 )% (Loss) gain on sale of debt securities (137 ) 186 (323 ) (174 )% Other income 6,316 5,821 495 9 % Total non-interest income 56,974 61,843 (4,869 ) (8 )% Total Income $ 415,146 $ 440,836 $ (25,690 ) (6 )% Net interest margin (tax-equivalent) 2.91 % 3.21 % Net Interest Income
Net-interest income of $358 million for the first half of 2023 decreased $20.8 million, or 5 percent, over the same period of 2022 and was primarily driven by increased interest expense. Interest income of $479 million for the first six months in the current year increased $89.1 million, or 23 percent, from the same period in the prior year and was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The loan yield was 5.07 percent for the first half of the current year, an increase of 51 basis points from the first half of the prior year loan yield of 4.56 percent.Interest expense of $121.1 million for the first half of 2023 increased $110 million, or 985 percent, over the same period in the prior year and was the result of increased borrowings and higher interest rates on borrowings and deposits. Core deposit cost (including non-interest bearing deposits) was 0.40 percent for the first half of 2023 compared to 0.06 percent for the same period in 2022. The total funding cost (including non-interest bearing deposits) for the first six months of the current year was 1.03 percent, which was an increase of 93 basis points over the prior year first half of 0.10 percent.
The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2023 was 2.91 percent, a 30 basis points decrease from the net interest margin of 3.21 percent for the same period in the prior year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the PPP loans, was 2.90 percent, which was a 21 basis points decrease from the core margin of 3.11 percent in the prior year.
Non-interest Income
Non-interest income of $57.0 million for the first half of 2023 decreased $4.9 million, or 8 percent, over the same period last year and was principally due to the decrease in gain on sale of residential loans which was partially offset by the increase in service charges and other fees.
Non-interest Expense SummarySix Months ended (Dollars in thousands) Jun 30,
2023Jun 30,
2022$ Change % Change Compensation and employee benefits $ 160,241 $ 158,877 $ 1,364 1 % Occupancy and equipment 22,492 21,730 762 4 % Advertising and promotions 7,968 6,998 970 14 % Data processing 16,511 15,028 1,483 10 % Other real estate owned and foreclosed assets 26 6 20 333 % Regulatory assessments and insurance 10,217 6,140 4,077 66 % Core deposit intangibles amortization 4,876 5,329 (453 ) (9 )% Other expenses 43,255 45,721 (2,466 ) (5 )% Total non-interest expense $ 265,586 $ 259,829 $ 5,757 2 % Total non-interest expense of $266 million for the first six months of 2023 increased $5.8 million, or 2 percent, over the same period in the prior year. Regulatory assessments and insurance of $10.2 million for the first half of 2023 increased $4.1 million, or 66 percent, over the prior year and was primarily due to the FDIC uniformly increasing all depository institutions premiums beginning in 2023. Other expense of $43.3 million for the first half of 2023 decreased $2.5 million, or 5 percent, from the first half of the prior year and was primarily due to the decrease in acquisition-related expenses along with changes in several miscellaneous categories. Acquisition-related expenses were $563 thousand in the first half of the current year compared to $8.3 million in the same period of last year.
Provision for Credit Losses
The provision for credit loss expense was $8.2 million for the first half of 2023 increased $2.7 million, or 50 percent, over the same period of the prior year. The provision for credit loss expense for the first half of 2023 included provision for credit loss expense of $11.5 million on the loan portfolio and credit loss benefit of $3.3 million on the unfunded loan commitments. Net charge-offs during the first half of the current year were $4.4 million compared to $2.7 million during the same period of the prior year.Federal and State Income Tax Expense
Tax expense of $25.2 million for the first half of 2023 decreased $6.2 million, or 20 percent, over the first six months of the prior year. The effective tax rate for first half of 2023 was 17.8 percent compared to 17.8 percent for the first half of 2022.Efficiency Ratio
The efficiency ratio was 61.52 percent for the first six months of 2023 compared to 56.42 percent for the same period last year. The increase from the prior year was primarily attributable to the increase in interest expense in the current year.Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are based on assumptions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those made in this news release:- risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
- changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
- legislative or regulatory changes, including increased banking and consumer protection regulations, that may adversely affect the Company’s business;
- risks related to overall economic conditions, including the impact on the economy of a rising interest rate environment, inflationary pressures, and geopolitical instability, including the war in Ukraine;
- risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;
- costs or difficulties related to the completion and integration of acquisitions;
- impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
- reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
- deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company's ability to obtain and maintain customers;
- changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
- 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 through acquisitions;
- risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
- material failure, potential interruption or breach in security of the Company’s systems or changes in technological which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
- risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
- success in managing risks involved in the foregoing; and
- effects of any reputational damage to the Company resulting from any of the foregoing.
The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.
Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, July 21, 2023. Please note that our conference call host no longer offers a general dial-in number. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BI19db5b01086643a5bde0e9f301e797ea. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/6gianovu. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. (NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions located across its eight state Western U.S. footprint: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), North Cascades Bank (Chelan, WA), The Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), and Western Security Bank (Billings, MT).Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition(Dollars in thousands, except per share data) Jun 30,
2023Mar 31,
2023Dec 31,
2022Jun 30,
2022Assets Cash on hand and in banks $ 285,920 290,960 300,194 293,541 Interest bearing cash deposits 765,400 1,238,574 101,801 121,865 Cash and cash equivalents 1,051,320 1,529,534 401,995 415,406 Debt securities, available-for-sale 4,999,820 5,198,313 5,307,307 6,209,199 Debt securities, held-to-maturity 3,608,289 3,664,393 3,715,052 3,788,486 Total debt securities 8,608,109 8,862,706 9,022,359 9,997,685 Loans held for sale, at fair value 35,006 14,461 12,314 33,837 Loans receivable 15,954,962 15,518,612 15,246,812 14,399,755 Allowance for credit losses (189,385 ) (186,604 ) (182,283 ) (172,963 ) Loans receivable, net 15,765,577 15,332,008 15,064,529 14,226,792 Premises and equipment, net 405,407 399,740 398,100 386,198 Other real estate owned and foreclosed assets 52 31 32 379 Accrued interest receivable 88,351 90,642 83,538 80,339 Deferred tax asset 179,815 172,453 193,187 147,263 Core deposit intangible, net 36,725 39,152 41,601 46,930 Goodwill 985,393 985,393 985,393 985,393 Non-marketable equity securities 10,014 23,414 82,015 33,215 Bank-owned life insurance 169,195 168,235 169,068 168,231 Other assets 192,715 184,665 181,244 168,337 Total assets $ 27,527,679 27,802,434 26,635,375 26,690,005 Liabilities Non-interest bearing deposits $ 6,458,394 7,001,241 7,690,751 8,061,304 Interest bearing deposits 13,549,836 13,147,067 12,915,804 13,722,379 Securities sold under agreements to repurchase 1,356,862 1,191,323 945,916 968,197 FHLB advances — 335,000 1,800,000 580,000 FRB Bank Term Funding 2,740,000 2,740,000 — — Other borrowed funds 75,819 76,185 77,293 66,200 Subordinated debentures 132,863 132,822 132,782 132,701 Accrued interest payable 47,742 8,968 4,331 2,334 Other liabilities 239,637 242,924 225,193 260,651 Total liabilities 24,601,153 24,875,530 23,792,070 23,793,766 Commitments and Contingent Liabilities — — — — Stockholders’ Equity Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding — — — — Common stock, $0.01 par value per share, 234,000,000 shares authorized 1,109 1,109 1,108 1,108 Paid-in capital 2,346,422 2,344,514 2,344,005 2,341,097 Retained earnings - substantially restricted 1,009,782 991,509 966,984 881,246 Accumulated other comprehensive loss (430,787 ) (410,228 ) (468,792 ) (327,212 ) Total stockholders’ equity 2,926,526 2,926,904 2,843,305 2,896,239 Total liabilities and stockholders’ equity $ 27,527,679 27,802,434 26,635,375 26,690,005 Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of OperationsThree Months ended Six Months ended (Dollars in thousands, except per share data) Jun 30,
2023Mar 31,
2023Jun 30,
2022Jun 30,
2023Jun 30,
2022Interest Income Investment securities $ 47,658 43,642 42,841 91,300 81,495 Residential real estate loans 17,076 15,838 13,026 32,914 28,541 Commercial loans 164,587 155,682 131,259 320,269 255,815 Consumer and other loans 18,044 16,726 12,511 34,770 24,302 Total interest income 247,365 231,888 199,637 479,253 390,153 Interest Expense Deposits 31,700 12,545 3,141 44,245 6,605 Securities sold under agreements to
repurchase8,607 4,606 367 13,213 760 Federal Home Loan Bank advances 3,305 23,605 1,298 26,910 1,310 FRB Bank Term Funding 29,899 3,032 — 32,931 — Other borrowed funds 443 496 264 939 484 Subordinated debentures 1,431 1,412 1,129 2,843 2,001 Total interest expense 75,385 45,696 6,199 121,081 11,160 Net Interest Income 171,980 186,192 193,438 358,172 378,993 Provision for credit losses 2,773 5,470 (1,533 ) 8,243 5,498 Net interest income after provision for credit losses 169,207 180,722 194,971 349,929 373,495 Non-Interest Income Service charges and other fees 18,967 17,771 17,309 36,738 34,420 Miscellaneous loan fees and charges 4,162 3,967 3,850 8,129 7,405 Gain on sale of loans 3,528 2,400 4,996 5,928 14,011 (Loss) gain on sale of debt securities (23 ) (114 ) (260 ) (137 ) 186 Other income 2,445 3,871 2,385 6,316 5,821 Total non-interest income 29,079 27,895 28,280 56,974 61,843 Non-Interest Expense Compensation and employee benefits 78,764 81,477 79,803 160,241 158,877 Occupancy and equipment 10,827 11,665 10,766 22,492 21,730 Advertising and promotions 3,733 4,235 3,766 7,968 6,998 Data processing 8,402 8,109 7,553 16,511 15,028 Other real estate owned and foreclosed assets 14 12 6 26 6 Regulatory assessments and insurance 5,314 4,903 3,085 10,217 6,140 Core deposit intangibles amortization 2,427 2,449 2,665 4,876 5,329 Other expenses 21,123 22,132 21,877 43,255 45,721 Total non-interest expense 130,604 134,982 129,521 265,586 259,829 Income Before Income Taxes 67,682 73,635 93,730 141,317 175,509 Federal and state income tax expense 12,727 12,424 17,338 25,151 31,322 Net Income $ 54,955 61,211 76,392 116,166 144,187 Glacier Bancorp, Inc.
Average Balance SheetsThree Months ended June 30, 2023 March 31, 2023 (Dollars in thousands) Average
BalanceInterest &
DividendsAverage
Yield/
RateAverage
BalanceInterest &
DividendsAverage
Yield/
RateAssets Residential real estate loans $ 1,567,136 $ 17,076 4.36 % $ 1,493,938 $ 15,838 4.24 % Commercial loans 1 12,950,934 165,874 5.14 % 12,655,551 157,456 5.05 % Consumer and other loans 1,236,763 18,044 5.85 % 1,207,315 16,726 5.62 % Total loans 2 15,754,833 200,994 5.12 % 15,356,804 190,020 5.02 % Tax-exempt debt securities 3 1,743,852 14,462 3.32 % 1,761,533 16,030 3.64 % Taxable debt securities 4 8,177,551 35,202 1.72 % 8,052,662 31,084 1.54 % Total earning assets 25,676,236 250,658 3.92 % 25,170,999 237,134 3.82 % Goodwill and intangibles 1,023,291 1,025,716 Non-earning assets 523,349 478,962 Total assets $ 27,222,876 $ 26,675,677 Liabilities Non-interest bearing deposits $ 6,584,082 $ — — % $ 7,274,228 $ — — % NOW and DDA accounts 5,108,421 7,429 0.58 % 5,080,175 2,271 0.18 % Savings accounts 2,846,015 1,064 0.15 % 3,107,559 514 0.07 % Money market deposit accounts 3,256,007 10,174 1.25 % 3,468,953 5,834 0.68 % Certificate accounts 1,451,218 8,878 2.45 % 984,770 2,584 1.06 % Total core deposits 19,245,743 27,545 0.57 % 19,915,685 11,203 0.23 % Wholesale deposits 5 330,655 4,155 5.04 % 120,468 1,342 4.52 % Repurchase agreements 1,273,045 8,607 2.71 % 1,035,582 4,606 1.80 % FHLB advances 245,055 3,305 5.33 % 1,990,833 23,605 4.74 % FRB Bank Term Funding 2,740,000 29,899 4.38 % 280,944 3,032 4.32 % Subordinated debentures and other borrowed funds 208,804 1,874 3.60 % 209,547 1,908 3.69 % Total funding liabilities 24,043,302 75,385 1.26 % 23,553,059 45,696 0.79 % Other liabilities 247,319 217,245 Total liabilities 24,290,621 23,770,304 Stockholders’ Equity Common stock 1,108 1,108 Paid-in capital 2,345,438 2,344,301 Retained earnings 1,017,456 998,340 Accumulated other comprehensive loss (431,747 ) (438,376 ) Total stockholders’ equity 2,932,255 2,905,373 Total liabilities and stockholders’ equity $ 27,222,876 $ 26,675,677 Net interest income (tax-equivalent) $ 175,273 $ 191,438 Net interest spread (tax-equivalent) 2.66 % 3.03 % Net interest margin (tax-equivalent) 2.74 % 3.08 % ______________________________
1 Includes tax effect of $1.3 million and $1.8 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2023 and March 31, 2023, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $1.8 million and $3.3 million on tax-exempt debt securities income for the three months ended June 30, 2023 and March 31, 2023, respectively.
4 Includes tax effect of $214 thousand and $215 thousand on federal income tax credits for the three months ended June 30, 2023 and March 31, 2023, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.Glacier Bancorp, Inc.
Average Balance Sheets (continued)Three Months ended June 30, 2023 June 30, 2022 (Dollars in thousands) Average
BalanceInterest &
DividendsAverage
Yield/
RateAverage
BalanceInterest &
DividendsAverage
Yield/
RateAssets Residential real estate loans $ 1,567,136 $ 17,076 4.36 % $ 1,229,013 $ 13,026 4.24 % Commercial loans 1 12,950,934 165,874 5.14 % 11,712,381 132,799 4.55 % Consumer and other loans 1,236,763 18,044 5.85 % 1,107,396 12,511 4.53 % Total loans 2 15,754,833 200,994 5.12 % 14,048,790 158,336 4.52 % Tax-exempt debt securities 3 1,743,852 14,462 3.32 % 1,979,865 18,413 3.72 % Taxable debt securities 4 8,177,551 35,202 1.72 % 8,685,641 28,473 1.31 % Total earning assets 25,676,236 250,658 3.92 % 24,714,296 205,222 3.33 % Goodwill and intangibles 1,023,291 1,033,601 Non-earning assets 523,349 619,671 Total assets $ 27,222,876 $ 26,367,568 Liabilities Non-interest bearing deposits $ 6,584,082 $ — — % $ 7,991,993 $ — — % NOW and DDA accounts 5,108,421 7,429 0.58 % 5,405,470 723 0.05 % Savings accounts 2,846,015 1,064 0.15 % 3,261,798 244 0.03 % Money market deposit accounts 3,256,007 10,174 1.25 % 3,999,582 1,369 0.14 % Certificate accounts 1,451,218 8,878 2.45 % 982,397 797 0.33 % Total core deposits 19,245,743 27,545 0.57 % 21,641,240 3,133 0.06 % Wholesale deposits 5 330,655 4,155 5.04 % 3,877 8 0.71 % Repurchase agreements 1,273,045 8,607 2.71 % 923,459 367 0.16 % FHLB advances 245,055 3,305 5.33 % 476,978 1,298 1.08 % FRB Bank Term Funding 2,740,000 29,899 4.38 % — — — % Subordinated debentures and other borrowed funds 208,804 1,874 3.60 % 190,072 1,393 2.94 % Total funding liabilities 24,043,302 75,385 1.26 % 23,235,626 6,199 0.11 % Other liabilities 247,319 235,814 Total liabilities 24,290,621 23,471,440 Stockholders’ Equity Common stock 1,108 1,108 Paid-in capital 2,345,438 2,340,059 Retained earnings 1,017,456 875,276 Accumulated other comprehensive loss (431,747 ) (320,315 ) Total stockholders’ equity 2,932,255 2,896,128 Total liabilities and stockholders’ equity $ 27,222,876 $ 26,367,568 Net interest income (tax-equivalent) $ 175,273 $ 199,023 Net interest spread (tax-equivalent) 2.66 % 3.22 % Net interest margin (tax-equivalent) 2.74 % 3.23 % ______________________________
1 Includes tax effect of $1.3 million and $1.5 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2023 and 2022, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $1.8 million and $3.8 million on tax-exempt debt securities income for the three months ended June 30, 2023 and 2022, respectively.
4 Includes tax effect of $214 thousand and $226 thousand on federal income tax credits for the three months ended June 30, 2023 and 2022, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.Glacier Bancorp, Inc.
Average Balance Sheets (continued)Six Months ended June 30, 2023 June 30, 2022 (Dollars in thousands) Average
BalanceInterest &
DividendsAverage
Yield/
RateAverage
BalanceInterest &
DividendsAverage
Yield/
RateAssets Residential real estate loans $ 1,530,739 $ 32,914 4.30 % $ 1,184,864 $ 28,541 4.82 % Commercial loans 1 12,804,058 323,330 5.09 % 11,516,661 258,718 4.53 % Consumer and other loans 1,222,121 34,770 5.74 % 1,091,338 24,302 4.49 % Total loans 2 15,556,918 391,014 5.07 % 13,792,863 311,561 4.56 % Tax-exempt debt securities 3 1,752,644 30,492 3.48 % 1,852,204 34,077 3.68 % Taxable debt securities 4 8,115,452 66,286 1.63 % 8,783,881 54,938 1.25 % Total earning assets 25,425,014 487,792 3.87 % 24,428,948 400,576 3.31 % Goodwill and intangibles 1,024,497 1,034,951 Non-earning assets 501,278 687,668 Total assets $ 26,950,789 $ 26,151,567 Liabilities Non-interest bearing deposits $ 6,927,248 $ — — % $ 7,926,215 $ — — % NOW and DDA accounts 5,094,376 9,700 0.38 % 5,343,074 1,568 0.06 % Savings accounts 2,976,065 1,578 0.11 % 3,254,197 576 0.04 % Money market deposit accounts 3,361,892 16,008 0.96 % 4,015,102 2,750 0.14 % Certificate accounts 1,219,282 11,462 1.90 % 1,000,893 1,694 0.34 % Total core deposits 19,578,863 38,748 0.40 % 21,539,481 6,588 0.06 % Wholesale deposits 5 226,142 5,497 4.90 % 10,497 17 0.31 % Repurchase agreements 1,154,970 13,213 2.31 % 946,872 760 0.16 % FHLB advances 1,113,122 26,910 4.81 % 247,265 1,310 1.05 % FRB Bank Term Funding 1,517,265 32,931 4.38 % — — — % Subordinated debentures and other borrowed funds 209,174 3,782 3.65 % 184,927 2,485 2.71 % Total funding liabilities 23,799,536 121,081 1.03 % 22,929,042 11,160 0.10 % Other liabilities 232,365 242,528 Total liabilities 24,031,901 23,171,570 Stockholders’ Equity Common stock 1,108 1,107 Paid-in capital 2,344,872 2,339,476 Retained earnings 1,007,951 861,302 Accumulated other comprehensive income (435,043 ) (221,888 ) Total stockholders’ equity 2,918,888 2,979,997 Total liabilities and stockholders’ equity $ 26,950,789 $ 26,151,567 Net interest income (tax-equivalent) $ 366,711 $ 389,416 Net interest spread (tax-equivalent) 2.84 % 3.21 % Net interest margin (tax-equivalent) 2.91 % 3.21 % ______________________________
1 Includes tax effect of $3.1 million and $2.9 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2023 and 2022, respectively.
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $5.0 million and $7.1 million on tax-exempt debt securities income for the six months ended June 30, 2023 and 2022, respectively.
4 Includes tax effect of $429 thousand and $451 thousand on federal income tax credits for the six months ended June 30, 2023 and 2022, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.Glacier Bancorp, Inc.
Loan Portfolio by Regulatory ClassificationLoans Receivable, by Loan Type % Change from (Dollars in thousands) Jun 30,
2023Mar 31,
2023Dec 31,
2022Jun 30,
2022Mar 31,
2023Dec 31,
2022Jun 30,
2022Custom and owner occupied construction $ 315,651 $ 295,604 $ 298,461 $ 282,916 7 % 6 % 12 % Pre-sold and spec construction 306,440 312,715 297,895 269,568 (2 )% 3 % 14 % Total residential construction 622,091 608,319 596,356 552,484 2 % 4 % 13 % Land development 238,897 230,823 219,842 201,607 3 % 9 % 18 % Consumer land or lots 182,251 187,498 206,604 197,394 (3 )% (12 )% (8 )% Unimproved land 91,157 104,811 104,662 101,266 (13 )% (13 )% (10 )% Developed lots for operative builders 65,134 69,896 60,987 68,087 (7 )% 7 % (4 )% Commercial lots 94,334 91,780 93,952 95,958 3 % — % (2 )% Other construction 1,039,192 965,244 938,406 931,000 8 % 11 % 12 % Total land, lot, and other construction 1,710,965 1,650,052 1,624,453 1,595,312 4 % 5 % 7 % Owner occupied 2,934,724 2,885,798 2,833,469 2,747,152 2 % 4 % 7 % Non-owner occupied 3,714,531 3,631,158 3,531,673 3,333,915 2 % 5 % 11 % Total commercial real estate 6,649,255 6,516,956 6,365,142 6,081,067 2 % 4 % 9 % Commercial and industrial 1,370,393 1,353,919 1,377,888 1,353,248 1 % (1 )% 1 % Agriculture 770,378 715,863 735,553 758,394 8 % 5 % 2 % 1st lien 1,956,205 1,864,294 1,808,502 1,596,878 5 % 8 % 23 % Junior lien 46,616 42,397 40,445 34,149 10 % 15 % 37 % Total 1-4 family 2,002,821 1,906,691 1,848,947 1,631,027 5 % 8 % 23 % Multifamily residential 664,859 649,148 622,185 562,480 2 % 7 % 18 % Home equity lines of credit 940,048 893,037 872,899 820,721 5 % 8 % 15 % Other consumer 231,519 224,125 220,035 213,943 3 % 5 % 8 % Total consumer 1,171,567 1,117,162 1,092,934 1,034,664 5 % 7 % 13 % States and political subdivisions 812,688 806,878 797,656 695,396 1 % 2 % 17 % Other 214,951 208,085 198,012 169,520 3 % 9 % 27 % Total loans receivable, including
loans held for sale15,989,968 15,533,073 15,259,126 14,433,592 3 % 5 % 11 % Less loans held for sale 1 (35,006 ) (14,461 ) (12,314 ) (33,837 ) 142 % 184 % 3 % Total loans receivable $ 15,954,962 $ 15,518,612 $ 15,246,812 $ 14,399,755 3 % 5 % 11 % ______________________________
1 Loans held for sale are primarily 1st lien 1-4 family loans.Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification
Non-performing Assets, by Loan TypeNon-
Accrual
LoansAccruing
Loans 90
Days
or More Past
DueOther real
estate owned
and
foreclosed
assets(Dollars in thousands) Jun 30,
2023Mar 31,
2023Dec 31,
2022Jun 30,
2022Jun 30,
2023Jun 30,
2023Jun 30,
2023Custom and owner occupied construction $ 219 220 224 230 219 — — Pre-sold and spec construction 1,548 1,548 389 389 — 1,548 — Total residential construction 1,767 1,768 613 619 219 1,548 — Land development 118 129 138 197 118 — — Consumer land or lots 239 112 278 157 106 133 — Unimproved land 43 51 78 107 43 — — Developed lots for operative builders 608 607 251 260 — 608 — Commercial lots 188 188 — — 141 47 — Other construction 12,884 12,884 12,884 12,884 12,884 — — Total land, lot and other construction 14,080 13,971 13,629 13,605 13,292 788 — Owner occupied 2,251 2,682 2,076 4,013 2,132 119 — Non-owner occupied 4,450 4,544 805 1,491 4,450 — — Total commercial real estate 6,701 7,226 2,881 5,504 6,582 119 — Commercial and Industrial 1,339 2,001 3,326 5,741 827 505 7 Agriculture 2,564 2,573 2,574 9,169 2,564 — — 1st lien 2,794 2,015 2,678 2,196 2,686 108 — Junior lien 273 111 166 200 53 220 — Total 1-4 family 3,067 2,126 2,844 2,396 2,739 328 — Multifamily residential — — 4,535 4,765 — — — Home equity lines of credit 1,256 1,225 1,393 1,684 1,045 211 — Other consumer 1,116 1,062 911 466 826 245 45 Total consumer 2,372 2,287 2,304 2,150 1,871 456 45 Other 132 27 36 17 — 132 — Total $ 32,022 31,979 32,742 43,966 28,094 3,876 52 Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)Accruing 30-89 Days Delinquent Loans, by Loan Type % Change from (Dollars in thousands) Jun 30,
2023Mar 31,
2023Dec 31,
2022Jun 30,
2022Mar 31,
2023Dec 31,
2022Jun 30,
2022Custom and owner occupied construction $ 324 $ 1,624 $ 1,082 $ 2,046 (80 )% (70 )% (84 )% Pre-sold and spec construction 129 — 1,712 602 n/m (92 )% (79 )% Total residential construction 453 1,624 2,794 2,648 (72 )% (84 )% (83 )% Land development 244 946 — 365 (74 )% n/m (33 )% Consumer land or lots 565 668 442 337 (15 )% 28 % 68 % Unimproved land — — 120 590 n/m (100 )% (100 )% Developed lots for operative builders — — 958 — n/m (100 )% n/m Commercial lots 3,404 — 47 — n/m 7,143 % n/m Other construction 1,114 5,264 209 — (79 )% 433 % n/m Total land, lot and other construction 5,327 6,878 1,776 1,292 (23 )% 200 % 312 % Owner occupied 1,053 1,783 3,478 1,560 (41 )% (70 )% (33 )% Non-owner occupied 8,595 429 496 123 1,903 % 1,633 % 6,888 % Total commercial real estate 9,648 2,212 3,974 1,683 336 % 143 % 473 % Commercial and industrial 2,096 3,677 3,439 5,969 (43 )% (39 )% (65 )% Agriculture 871 947 1,367 851 (8 )% (36 )% 2 % 1st lien 1,115 3,321 2,174 329 (66 )% (49 )% 239 % Junior lien 385 385 190 105 — % 103 % 267 % Total 1-4 family 1,500 3,706 2,364 434 (60 )% (37 )% 246 % Multifamily Residential — 201 492 — (100 )% (100 ) n/m Home equity lines of credit 2,021 2,804 1,182 1,071 (28 )% 71 % 89 % Other consumer 1,714 1,598 1,824 1,140 7 % (6 )% 50 % Total consumer 3,735 4,402 3,006 2,211 (15 )% 24 % 69 % States and political subdivisions — — 28 7 n/m (100 )% (100 )% Other 1,233 1,346 1,727 1,493 (8 )% (29 )% (17 )% Total $ 24,863 $ 24,993 $ 20,967 $ 16,588 (1 )% 19 % 50 % ______________________________
n/m - not measurableGlacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan TypeCharge-Offs Recoveries (Dollars in thousands) Jun 30,
2023Mar 31,
2023Dec 31,
2022Jun 30,
2022Jun 30,
2023Jun 30,
2023Custom and owner occupied construction $ — — 17 — — — Pre-sold and spec construction (8 ) (4 ) (15 ) (8 ) — 8 Total residential construction (8 ) (4 ) 2 (8 ) — 8 Land development (132 ) — (34 ) (21 ) — 132 Consumer land or lots (14 ) — (46 ) (10 ) — 14 Unimproved land — — — (1 ) — — Total land, lot and other construction (146 ) — (80 ) (32 ) — 146 Owner occupied (76 ) (68 ) 555 229 16 92 Non-owner occupied 299 298 (242 ) (3 ) 305 6 Total commercial real estate 223 230 313 226 321 98 Commercial and industrial (18 ) (382 ) (70 ) (458 ) 523 541 Agriculture — — (7 ) (4 ) — — 1st lien 101 44 (109 ) (56 ) 111 10 Junior lien 38 (5 ) (302 ) (297 ) 49 11 Total 1-4 family 139 39 (411 ) (353 ) 160 21 Multifamily residential — — 136 — — — Home equity lines of credit 56 (39 ) (91 ) (51 ) 102 46 Other consumer 401 125 451 166 531 130 Total consumer 457 86 360 115 633 176 Other 3,765 1,970 7,572 3,207 5,446 1,681 Total $ 4,412 1,939 7,815 2,693 7,083 2,671
Visit our website at www.glacierbancorp.comCONTACT: Randall M. Chesler, CEO
(406) 751-4722
Ron J. Copher, CFO
(406) 751-7706