Glacier Bancorp, Inc. Announces Results For The Quarter And Period Ended March 31, 2024

1st Quarter 2024 Highlights:

  • Net income was $32.6 million for the current quarter, a decrease of $21.7 million, or 40 percent, from the prior quarter net income of $54.3 million and a decrease of $28.6 million, or 47 percent, from the prior year first quarter net income of $61.2 million. The current quarter included a total of $13.3 million related to credit loss expense from the acquisition of Wheatland Bank, acquisition-related expense and increased expense from the Federal Deposit Insurance Corporation (“FDIC”) special assessment.
  • The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.59 percent, an increase of 3 basis points from the prior quarter net interest margin of 2.56 percent.
  • Interest income of $279 million in the current quarter increased $5.9 million, or 2 percent, over the prior quarter and increased $47.5 million, or 20 percent, over the prior year first quarter.
  • The loan portfolio of $16.733 billion increased $534 million, or 3 percent, during the current quarter.
  • The loan yield for the current quarter of 5.46 percent increased 12 basis points compared to 5.34 percent in the prior quarter and increased 44 basis points from the prior year first quarter loan yield of 5.02 percent.
  • Total deposits of $20.428 billion increased $498 million, or 3 percent, during the current quarter and increased $279 million, or 1 percent, from the prior year first quarter.
  • The $2.740 billion of FRB Bank Term Funding (“BTFP”) was paid off during the current quarter through a combination of Federal Home Loan Bank (“FHLB”) advances and cash.
  • Non-performing assets of $25.4 million at March 31, 2024 decreased $206 thousand, or 1 percent, from the prior quarter and decreased $6.6 million, or 20 percent, from the prior year first quarter.
  • Stockholders’ equity of $3.111 billion increased $90.4 million, or 3 percent, during the current quarter and increased $184 million, or 6 percent, over the prior year first quarter.
  • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 156 consecutive quarterly dividends and has increased the dividend 49 times.
  • The Company completed the acquisition and core system conversion of Community Financial Group, Inc., the parent company of Wheatland Bank, a leading eastern Washington community bank headquartered in Spokane with total assets of $778 million.
  • The Company announced a purchase and assumption agreement with Heartland Bank (“HTLF”) to purchase six Montana branches from its Rocky Mountain Bank division including the deposits, loans, owned real estate and fixed assets associated with the branches.

Financial Summary

  At or for the Three Months ended
(Dollars in thousands, except per share and market data) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
Operating results          
Net income $ 32,627     54,316     61,211  
Basic earnings per share $ 0.29     0.49     0.55  
Diluted earnings per share $ 0.29     0.49     0.55  
Dividends declared per share $ 0.33     0.33     0.33  
Market value per share          
Closing $ 40.28     41.32     42.01  
High $ 42.75     44.06     50.03  
Low $ 34.74     27.36     37.07  
Selected ratios and other data          
Number of common stock shares outstanding   113,388,590     110,888,942     110,868,713  
Average outstanding shares – basic   112,492,142     110,884,496     110,824,648  
Average outstanding shares – diluted   112,554,402     110,907,640     110,881,708  
Return on average assets (annualized)   0.47 %   0.77 %   0.93 %
Return on average equity (annualized)   4.25 %   7.40 %   8.54 %
Efficiency ratio   74.41 %   65.20 %   60.39 %
Loan to deposit ratio   82.04 %   81.36 %   77.09 %
Number of full time equivalent employees   3,438     3,294     3,390  
Number of locations   232     221     222  
Number of ATMs   285     275     263  
                   

KALISPELL, Mont., April 18, 2024 (GLOBE NEWSWIRE) — Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $32.6 million for the current quarter, a decrease of $28.6 million, or 47 percent, from the $61.2 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.29 per share, a decrease of 47 percent from the prior year first quarter diluted earnings per share of $0.55. The decrease in net income compared to the prior year first quarter was primarily due to the significant increase in funding costs over the year combined with the increased costs associated with the acquisition of Wheatland Bank. The current quarter included $5.7 million of acquisition-related expense and $6.1 million of credit loss expense from the acquisition of Wheatland Bank. Included in the current quarter non-interest expense was $1.5 million related to the FDIC increased loss estimates from the special assessment pursuant to a systemic risk determination. “We are pleased to see our margin grow in the quarter and believe this positive trend will continue during 2024,” said Randy Chesler, President and Chief Executive Officer. “We remain very confident in the quality of our loan portfolio and were pleased to welcome Wheatland Bank to the Company and announce the acquisition of the six Rocky Mountain Bank branches in Montana from Heartland Financial.”

On January 31, 2024, the Company completed the acquisition of Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, “Wheatland”), headquartered in Spokane, Washington. Wheatland has 14 branches in eastern Washington and was combined with the North Cascades Bank division, with combined operations under the name Wheatland Bank, division of Glacier Bank. The Company’s results of operations and financial condition include the Wheatland acquisition beginning on the acquisition date. The following table discloses the preliminary fair value estimates of select classifications of assets and liabilities acquired:

  Wheatland
(Dollars in thousands) January 31,
2024
Total assets $ 777,659
Debt securities   187,183
Loans receivable   450,403
Non-interest bearing deposits   277,651
Interest bearing deposits   339,304
Borrowings   58,500
     

During the current quarter, the Company announced the signing of a purchase and assumption agreement to purchase six Montana branches from the Rocky Mountain Bank division of HTLF. The branches will join Glacier Bank divisions operating in Montana. The branch acquisition is subject to regulatory approvals and other customary conditions of closing and is expected to be completed in the third quarter of 2024.

Asset Summary

              $ Change from
(Dollars in thousands) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
  Dec 31,
2023
  Mar 31,
2023
Cash and cash equivalents $ 788,660     1,354,342     1,529,534     (565,682 )   (740,874 )
Debt securities, available-for-sale   4,629,073     4,785,719     5,198,313     (156,646 )   (569,240 )
Debt securities, held-to-maturity   3,451,583     3,502,411     3,664,393     (50,828 )   (212,810 )
Total debt securities   8,080,656     8,288,130     8,862,706     (207,474 )   (782,050 )
Loans receivable                  
Residential real estate   1,752,514     1,704,544     1,508,403     47,970     244,111  
Commercial real estate   10,672,269     10,303,306     9,992,019     368,963     680,250  
Other commercial   3,030,608     2,901,863     2,804,104     128,745     226,504  
Home equity   883,062     888,013     829,844     (4,951 )   53,218  
Other consumer   394,049     400,356     384,242     (6,307 )   9,807  
Loans receivable   16,732,502     16,198,082     15,518,612     534,420     1,213,890  
Allowance for credit losses   (198,779 )   (192,757 )   (186,604 )   (6,022 )   (12,175 )
Loans receivable, net   16,533,723     16,005,325     15,332,008     528,398     1,201,715  
Other assets   2,419,131     2,094,832     2,078,186     324,299     340,945  
Total assets $ 27,822,170     27,742,629     27,802,434     79,541     19,736  
                               

The $789 million cash balance at March 31, 2024 decreased $566 million during the current quarter as cash was utilized to partially fund the maturity of the BTFP. Total debt securities of $8.081 billion at March 31, 2024 decreased $207 million during the current quarter and decreased $782 million, or 9 percent, from the prior year end. Debt securities represented 29 percent of total assets at March 31, 2024 compared to 30 percent at December 31, 2023 and 32 percent at March 31, 2023.

The loan portfolio of $16.733 billion at March 31, 2024 increased $534 million, or 3 percent, during the current quarter and increased $1.214 billion, or 8 percent, from the prior year. Excluding the Wheatland acquisition, the loan portfolio increased $84.0 million, or 2 percent annualized, with the largest increase in commercial real estate, which increased $63.9 million, or 2 percent annualized. Excluding the Wheatland acquisition, the loan portfolio increased $763 million, or 5 percent, from the prior year first quarter with the largest increase in commercial real estate loans, which increased $375 million, or 4 percent.

Credit Quality Summary

  At or for the
Three Months
ended
  At or for the
Year ended
  At or for the
Three Months
ended
(Dollars in thousands) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
Allowance for credit losses          
Balance at beginning of period $ 192,757     182,283     182,283  
Acquisitions   3          
Provision for credit losses   9,091     20,790     6,260  
Charge-offs   (4,295 )   (15,095 )   (3,293 )
Recoveries   1,223     4,779     1,354  
Balance at end of period $ 198,779     192,757     186,604  
Provision for credit losses          
Loan portfolio $ 9,091     20,790     6,260  
Unfunded loan commitments   (842 )   (5,995 )   (790 )
Total provision for credit losses $ 8,249     14,795     5,470  
Other real estate owned $ 432     1,032      
Other foreclosed assets   459     471     31  
Accruing loans 90 days or more past due   3,796     3,312     3,545  
Non-accrual loans   20,738     20,816     28,403  
Total non-performing assets $ 25,425     25,631     31,979  
Non-performing assets as a percentage of subsidiary assets   0.09 %   0.09 %   0.12 %
Allowance for credit losses as a percentage of non-performing loans   810 %   799 %   584 %
Allowance for credit losses as a percentage of total loans   1.19 %   1.19 %   1.20 %
Net charge-offs as a percentage of total loans   0.02 %   0.06 %   0.01 %
Accruing loans 30-89 days past due $ 62,423     49,967     24,993  
U.S. government guarantees included in non-performing assets $ 1,490     1,503     2,071  
                   

Non-performing assets of $25.4 million at March 31, 2024 decreased $206 thousand, or 1 percent, over the prior quarter and decreased $6.6 million, or 20 percent, over the prior year first quarter. Non-performing assets as a percentage of subsidiary assets at March 31, 2024 was 0.09 percent compared to 0.09 percent in the prior quarter and 0.12 percent in the prior year first quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $62.4 million at March 31, 2024 increased $12.5 million from the prior quarter and increased $37.4 million from prior year first quarter. The increase over the prior period was primarily isolated to one credit relationship of $18.1 million. Early stage delinquencies as a percentage of loans at March 31, 2024 were 0.37 percent compared to 0.31 percent for the prior quarter end and 0.16 percent for the prior year first quarter.

The current quarter credit loss expense of $8.2 million included $5.3 million of provision for credit losses on loans and $818 thousand of provision for credit loss on unfunded loan commitments from the acquisition of Wheatland. Excluding the acquisition of Wheatland, the current quarter credit loss expense was $2.1 million, including a $3.8 million credit loss expense from loans and $1.7 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 March 31, 2024 and December 31, 2023 was 1.19 percent compared to 1.20 percent at March 31, 2023.

Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio

(Dollars in thousands) Provision for
Credit Losses
Loans
  Net Charge-Offs
(Recoveries)
  ACL
as a Percent
of Loans
  Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
  Non-Performing
Assets to
Total Subsidiary
Assets
First quarter 2024 $ 9,091     $ 3,072   1.19 %   0.37 %   0.09 %
Fourth quarter 2023   4,181       3,695   1.19 %   0.31 %   0.09 %
Third quarter 2023   5,095       2,209   1.19 %   0.09 %   0.15 %
Second 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 %
                               

Net charge-offs for the current quarter were $3.1 million compared to $3.7 million in the prior quarter and $1.9 million for the prior year first quarter. Net charge-offs of $3.1 million included $2.4 million in deposit overdraft net charge-offs and $626 thousand of net loan charge-offs.

Excluding the acquisition of Wheatland, the current quarter provision for credit loss expense for loans was $3.8 million, which was a decrease of $361 thousand from the prior quarter and a $2.4 million decrease from the prior year first 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) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
  Dec 31,
2023
  Mar 31,
2023
Deposits                  
Non-interest bearing deposits $ 6,055,069   6,022,980   7,001,241   32,089     (946,172 )
NOW and DDA accounts   5,376,605   5,321,257   5,156,709   55,348     219,896  
Savings accounts   2,949,908   2,833,887   2,985,351   116,021     (35,443 )
Money market deposit accounts   3,002,942   2,831,624   3,429,123   171,318     (426,181 )
Certificate accounts   3,039,190   2,915,393   1,155,494   123,797     1,883,696  
Core deposits, total   20,423,714   19,925,141   19,727,918   498,573     695,796  
Wholesale deposits   3,809   4,026   420,390   (217 )   (416,581 )
Deposits, total   20,427,523   19,929,167   20,148,308   498,356     279,215  
Repurchase agreements   1,540,008   1,486,850   1,191,323   53,158     348,685  
Deposits and repurchase agreements, total   21,967,531   21,416,017   21,339,631   551,514     627,900  
Federal Home Loan Bank advances   2,140,157     335,000   2,140,157     1,805,157  
FRB Bank Term Funding     2,740,000   2,740,000   (2,740,000 )   (2,740,000 )
Other borrowed funds   88,814   81,695   76,185   7,119     12,629  
Subordinated debentures   132,984   132,943   132,822   41     162  
Other liabilities   381,977   351,693   251,892   30,284     130,085  
Total liabilities $ 24,711,463   24,722,348   24,875,530   (10,885 )   (164,067 )
                         

Total deposits of $20.428 billion at March 31, 2024 increased $498 million, or 3 percent, during the current quarter and increased $279 million, or 1 percent, from the prior year first quarter. Excluding the Wheatland acquisition, total deposits decreased $119 million, or 1 percent, during the current quarter and decreased $338 million, or 2 percent, from the prior year first quarter. Non-interest bearing deposits represented 30 percent of total deposits at both March 31, 2024 and December 31, 2023 compared to 35 percent at March 31, 2023.

Upon maturity in the current quarter, the Company paid off its $2.740 billion BTFP borrowings with a combination of $2.140 billion in FHLB borrowings and cash, resulting in a net reduction of $600 million in borrowings. The FHLB borrowings of $2.140 billion at quarter end included $340 million of overnight borrowings and $1.800 billion in term borrowings that will mature between March of 2025 and March of 2026 at a weighted average rate of 4.75 percent and a FHLB dividend adjusted weighted average rate of 4.41 percent compared to 4.38 percent for the matured BTFP borrowings.

Stockholders’ Equity Summary

              $ Change from
(Dollars in thousands, except per share data) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
  Dec 31,
2023
  Mar 31,
2023
Common equity $ 3,483,012     3,394,394     3,337,132     88,618     145,880  
Accumulated other comprehensive loss   (372,305 )   (374,113 )   (410,228 )   1,808     37,923  
Total stockholders’ equity   3,110,707     3,020,281     2,926,904     90,426     183,803  
Goodwill and core deposit intangible, net   (1,069,808 )   (1,017,263 )   (1,024,545 )   (52,545 )   (45,263 )
Tangible stockholders’ equity $ 2,040,899     2,003,018     1,902,359     37,881     138,540  
Stockholders’ equity to total assets   11.18 %   10.89 %   10.53 %          
Tangible stockholders’ equity to total tangible assets   7.63 %   7.49 %   7.10 %          
Book value per common share $ 27.43     27.24     26.40     0.19     1.03  
Tangible book value per common share $ 18.00     18.06     17.16     (0.06 )   0.84  
                               

Tangible stockholders’ equity of $2.041 billion at March 31, 2024 increased $37.9 million, or 2 percent, compared to the prior quarter and was primarily due to $92.4 million of Company common stock issued for the acquisition of Wheatland. The increase was partially offset by the increase in goodwill and core deposits associated the acquisition of Wheatland. Tangible book value per common share of $18.00 at the current quarter end decreased $0.06 per share, or 33 basis points, from the prior quarter and increased $0.84 per share, or 5 percent, from the prior year first quarter.

Cash Dividends
On March 27, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable April 18, 2024 to shareholders of record on April 9, 2024. The dividend was the Company’s 156th 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 March 31, 2024 
Compared to December 31, 2023, and March 31, 2023
 
Income Summary
 
  Three Months ended   $ Change from
(Dollars in thousands) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
  Dec 31,
2023
  Mar 31,
2023
Net interest income                  
Interest income $ 279,402     273,496     231,888     5,906     47,514  
Interest expense   112,922     107,040     45,696     5,882     67,226  
Total net interest income   166,480     166,456     186,192     24     (19,712 )
Non-interest income                  
Service charges and other fees   18,563     19,115     17,771     (552 )   792  
Miscellaneous loan fees and charges   4,362     4,484     3,967     (122 )   395  
Gain on sale of loans   3,362     2,228     2,400     1,134     962  
Gain (loss) on sale of securities   16     1,712     (114 )   (1,696 )   130  
Other income   3,686     3,326     3,871     360     (185 )
Total non-interest income   29,989     30,865     27,895     (876 )   2,094  
Total income $ 196,469     197,321     214,087     (852 )   (17,618 )
Net interest margin (tax-equivalent)   2.59 %   2.56 %   3.08 %        
                           

Net Interest Income
The current quarter interest income of $279 million increased $5.9 million, or 2 percent, over the prior quarter and increased $47.5 million, or 20 percent, from the prior year first quarter. Both increases were primarily driven by the increase in the loan yields and the increase in average balances of the loan portfolio. The loan yield of 5.46 percent in the current quarter increased 12 basis points from the prior quarter loan yield of 5.34 percent and increased 44 basis points from the prior year first quarter loan yield of 5.02 percent.

The current quarter interest expense of $113 million increased $5.9 million, or 6 percent, over the prior quarter and increased $67.2 million, or 147 percent, over the prior year first quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 1.34 percent for the current quarter compared to 1.24 percent in the prior quarter and 0.23 percent for the prior year first quarter. The increase in core deposit costs during the current quarter of 10 basis points was the smallest increase since the fourth quarter of 2022. The total cost of funding (including non-interest bearing deposits) was 1.84 percent in the current quarter compared to 1.72 percent in the prior quarter and 0.79 percent in the prior year first quarter, which was the result of the increased deposit and borrowing rates.

The current quarter experienced an increase in the net interest margin for the first time since the third quarter of 2022. The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.59 percent compared to 2.56 percent in the prior quarter and was primarily driven by the increase in loan yields outpacing the increase in deposit costs. Excluding the 3 basis points from discount accretion and the 1 basis point from recovery of non-accrual interest, the core net interest margin was 2.55 percent compared to 2.54 in the prior quarter and 3.07 percent in the prior year first quarter.

Non-interest Income
Non-interest income for the current quarter totaled $30.0 million, which was a decrease of $876 thousand, or 3 percent, over the prior quarter. Gain on the sale of residential loans of $3.4 million for the current quarter increased $1.1 million, or 51 percent, compared to the prior quarter and increased $962 thousand, or 40 percent, from the prior year first quarter. Included in the prior quarter gain on sale of securities was $1.7 million of gain on the sale of all of the Company’s Visa class B shares.

Non-interest Expense Summary

  Three Months ended   $ Change from
(Dollars in thousands) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
  Dec 31,
2023
  Mar 31,
2023
Compensation and employee benefits $ 85,789   71,420   81,477   14,369     4,312  
Occupancy and equipment   11,883   10,533   11,665   1,350     218  
Advertising and promotions   3,983   3,410   4,235   573     (252 )
Data processing   9,159   8,511   8,109   648     1,050  
Other real estate owned and foreclosed assets   25   78   12   (53 )   13  
Regulatory assessments and insurance   7,761   12,435   4,903   (4,674 )   2,858  
Core deposit intangibles amortization   2,760   2,427   2,449   333     311  
Other expenses   30,483   23,382   22,132   7,101     8,351  
Total non-interest expense $ 151,843   132,196   134,982   19,647     16,861  
                         

Total non-interest expense of $152 million for the current quarter increased $19.6 million, or 15 percent, over the prior quarter and increased $16.9 million, or 12 percent, over the prior year first quarter. In the prior quarter, the FDIC issued a special assessment for the estimated losses associated with the bank failures in March of 2023 and FDIC loss estimates were again increased by $1.5 million in the current quarter from $6.0 million in the prior quarter. Included in the current quarter was a total of $10.7 million of non-interest expense associated with the Wheatland acquisition, including $5.0 million in operating expenses and $5.7 million in acquisition-related expenses. Excluding the $10.7 million impact of the Wheatland acquisition and the $1.5 million FDIC special assessment, non-interest expense for the current quarter was $139.6 million. Excluding the $6.0 million FDIC special assessment, $459 thousand of acquisition-related expenses, and $6.0 million reduction in accrued performance-related compensation, non-interest expense for the prior quarter was $131.7 million. As adjusted, total non-interest expense of $139.6 million for the current quarter increased $7.9 million, or 6 percent, over the prior quarter non-interest expense of $131.7 million, and an increase of $5.0 million, or 4 percent, over the prior year first quarter.

Compensation and employee benefits expense of $85.8 million for the current quarter increased $14.4 million, or 20 percent, from the prior quarter and increased $4.3 million, or 5 percent, over the prior year first quarter which was driven by the acquisition of Wheatland, annual salary increases and increases in other benefits. Excluding the prior quarter $6.0 million accrual reduction and the $2.2 million compensation from the Wheatland acquisition, compensation and employee benefit expenses for the current quarter increased $6.2 million, or 8 percent over the prior quarter.

Other expense of $30.5 million increased $7.1 million, or 30 percent, from the prior quarter and increased $8.4 million from the prior year first quarter with both increases primarily attributable to increased acquisition-related expenses. Included in other expenses was acquisition-related expenses of $5.7 million in the current quarter, $459 thousand in the prior quarter and $352 thousand in the prior year first quarter. “The Company was excellent in controlling non-interest expenses in a challenging environment including the inflationary pressures that persist,” said Ron Copher, Chief Financial Officer.

Federal and State Income Tax Expense
Tax expense during the first quarter of 2024 was $3.8 million, a decrease of $4.0 million, or 52 percent, compared to the prior quarter and a decrease of $8.7 million, or 70 percent, from the prior year first quarter. The effective tax rate in the current quarter was 10.3 percent compared to 12.6 percent in the prior quarter and 16.9 percent in the prior year first quarter. The current quarter decrease in tax expense and the resulting effective tax rate was the result of a combination of increased federal income tax credits and a decrease in pre-tax income.

Efficiency Ratio
The efficiency ratio was 74.4 percent in the current quarter compared to 65.20 percent in the prior quarter and 60.39 percent in the prior year first quarter. The increase from the prior quarter was principally driven by the increased operating costs, including acquisition-related costs, from the Wheatland acquisition. The increase in the efficiency ratio from prior year first quarter was the combined impact of the expenses related to the Wheatland acquisition and a decrease in net interest income.

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 FDIC insurance rates and assessments, changes in the review and regulation of bank mergers, or increased banking and consumer protection regulations, that may adversely affect the Company’s business and strategies;
  • 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 wars in Ukraine and the Middle East;
  • 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 pending or future 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, April 19, 2024. 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/BId550ca03e5d445a9891dc7564271bdf4. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/ah79xpra. 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), The Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), Western Security Bank (Billings, MT), and Wheatland Bank (Spokane, WA).

 
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
 
(Dollars in thousands, except per share data) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
Assets          
Cash on hand and in banks $ 232,064     246,525     290,960  
Interest bearing cash deposits   556,596     1,107,817     1,238,574  
Cash and cash equivalents   788,660     1,354,342     1,529,534  
Debt securities, available-for-sale   4,629,073     4,785,719     5,198,313  
Debt securities, held-to-maturity   3,451,583     3,502,411     3,664,393  
Total debt securities   8,080,656     8,288,130     8,862,706  
Loans held for sale, at fair value   27,035     15,691     14,461  
Loans receivable   16,732,502     16,198,082     15,518,612  
Allowance for credit losses   (198,779 )   (192,757 )   (186,604 )
Loans receivable, net   16,533,723     16,005,325     15,332,008  
Premises and equipment, net   443,273     421,791     399,740  
Other real estate owned and foreclosed assets   891     1,503     31  
Accrued interest receivable   106,063     94,526     90,642  
Deferred tax asset   161,327     159,070     172,453  
Core deposit intangible, net   46,046     31,870     39,152  
Goodwill   1,023,762     985,393     985,393  
Non-marketable equity securities   111,129     12,755     23,414  
Bank-owned life insurance   186,625     171,101     168,235  
Other assets   312,980     201,132     184,665  
Total assets $ 27,822,170     27,742,629     27,802,434  
Liabilities          
Non-interest bearing deposits $ 6,055,069     6,022,980     7,001,241  
Interest bearing deposits   14,372,454     13,906,187     13,147,067  
Securities sold under agreements to repurchase   1,540,008     1,486,850     1,191,323  
FHLB advances   2,140,157         335,000  
FRB Bank Term Funding       2,740,000     2,740,000  
Other borrowed funds   88,814     81,695     76,185  
Subordinated debentures   132,984     132,943     132,822  
Accrued interest payable   32,584     125,907     8,968  
Other liabilities   349,393     225,786     242,924  
Total liabilities   24,711,463     24,722,348     24,875,530  
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   1,134     1,109     1,109  
Paid-in capital   2,443,584     2,350,104     2,344,514  
Retained earnings – substantially restricted   1,038,294     1,043,181     991,509  
Accumulated other comprehensive loss   (372,305 )   (374,113 )   (410,228 )
Total stockholders’ equity   3,110,707     3,020,281     2,926,904  
Total liabilities and stockholders’ equity $ 27,822,170     27,742,629     27,802,434  
 
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
 
  Three Months ended
(Dollars in thousands, except per share data) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
Interest Income          
Investment securities $ 56,218   57,233     43,642  
Residential real estate loans   20,764   19,820     15,838  
Commercial loans   181,472   175,957     155,682  
Consumer and other loans   20,948   20,486     16,726  
Total interest income   279,402   273,496     231,888  
Interest Expense          
Deposits   67,196   63,484     12,545  
Securities sold under agreements to repurchase   12,598   12,229     4,606  
Federal Home Loan Bank advances   4,249       23,605  
FRB Bank Term Funding   27,097   30,228     3,032  
Other borrowed funds   344   (372 )   496  
Subordinated debentures   1,438   1,471     1,412  
Total interest expense   112,922   107,040     45,696  
Net Interest Income   166,480   166,456     186,192  
Provision for credit losses   8,249   3,013     5,470  
Net interest income after provision for credit losses   158,231   163,443     180,722  
Non-Interest Income          
Service charges and other fees   18,563   19,115     17,771  
Miscellaneous loan fees and charges   4,362   4,484     3,967  
Gain on sale of loans   3,362   2,228     2,400  
Gain (loss) on sale of securities   16   1,712     (114 )
Other income   3,686   3,326     3,871  
Total non-interest income   29,989   30,865     27,895  
Non-Interest Expense          
Compensation and employee benefits   85,789   71,420     81,477  
Occupancy and equipment   11,883   10,533     11,665  
Advertising and promotions   3,983   3,410     4,235  
Data processing   9,159   8,511     8,109  
Other real estate owned and foreclosed assets   25   78     12  
Regulatory assessments and insurance   7,761   12,435     4,903  
Core deposit intangibles amortization   2,760   2,427     2,449  
Other expenses   30,483   23,382     22,132  
Total non-interest expense   151,843   132,196     134,982  
Income Before Income Taxes   36,377   62,112     73,635  
Federal and state income tax expense   3,750   7,796     12,424  
Net Income $ 32,627   54,316     61,211  
 
 Glacier Bancorp, Inc.
Average Balance Sheets
 
  Three Months ended
  March 31, 2024   December 31, 2023
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 1,747,184   $ 20,764   4.75 %   $ 1,700,598   $ 19,820   4.66 %
Commercial loans 1   13,513,426     183,045   5.45 %     13,196,412     177,397   5.33 %
Consumer and other loans   1,283,388     20,948   6.56 %     1,279,626     20,486   6.35 %
Total loans 2   16,543,998     224,757   5.46 %     16,176,636     217,703   5.34 %
Tax-exempt debt securities 3   1,720,370     15,157   3.52 %     1,725,858     14,738   3.42 %
Taxable debt securities 4, 5   8,176,974     43,477   2.13 %     8,466,825     44,665   2.11 %
Total earning assets   26,441,342     283,391   4.31 %     26,369,319     277,106   4.17 %
Goodwill and intangibles   1,051,954             1,018,423        
Non-earning assets   611,550             487,979        
Total assets $ 28,104,846           $ 27,875,721        
Liabilities                      
Non-interest bearing deposits $ 5,966,546   $   %   $ 6,262,801   $   %
NOW and DDA accounts   5,275,703     15,918   1.21 %     5,245,602     14,751   1.12 %
Savings accounts   2,900,649     5,655   0.78 %     2,843,788     4,848   0.68 %
Money market deposit accounts   2,948,294     14,393   1.96 %     2,911,054     13,600   1.85 %
Certificate accounts   3,000,713     31,175   4.18 %     2,872,192     29,563   4.08 %
Total core deposits   20,091,905     67,141   1.34 %     20,135,437     62,762   1.24 %
Wholesale deposits 6   3,965     55   5.50 %     53,841     722   5.32 %
Repurchase agreements   1,513,397     12,598   3.35 %     1,488,419     12,229   3.26 %
FHLB advances   350,754     4,249   4.79 %           %
FRB Bank Term Funding   2,483,077     27,097   4.39 %     2,740,000     30,228   4.38 %
Subordinated debentures and other borrowed funds   218,271     1,782   3.28 %     211,570     1,099   2.06 %
Total funding liabilities   24,661,369     112,922   1.84 %     24,629,267     107,040   1.72 %
Other liabilities   356,554             332,740        
Total liabilities   25,017,923             24,962,007        
Stockholders’ Equity                      
Stockholders’ equity   3,086,923             2,913,714        
Total liabilities and stockholders’ equity $ 28,104,846           $ 27,875,721        
Net interest income (tax-equivalent)     $ 170,469           $ 170,066    
Net interest spread (tax-equivalent)         2.47 %           2.45 %
Net interest margin (tax-equivalent)         2.59 %           2.56 %

______________________________

1   Includes tax effect of $1.6 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2024 and December 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 $2.2 million and $2.0 million on tax-exempt debt securities income for the three months ended March 31, 2024 and December 31, 2023, respectively.
4   Includes interest income of $15.3 million and $17.7 million on average interest-bearing cash balances of $1.12 billion and $1.29 billion for the three months ended March 31, 2024 and December 31, 2023, respectively.
5   Includes tax effect of $215 thousand and $215 thousand on federal income tax credits for the three months ended March 31, 2024 and December 31, 2023, respectively.
6   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
  March 31, 2024   March 31, 2023
(Dollars in thousands) Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
  Average
Balance
  Interest &
Dividends
  Average
Yield/
Rate
Assets                      
Residential real estate loans $ 1,747,184   $ 20,764   4.75 %   $ 1,493,938   $ 15,838   4.24 %
Commercial loans 1   13,513,426     183,045   5.45 %     12,655,551     157,456   5.05 %
Consumer and other loans   1,283,388     20,948   6.56 %     1,207,315     16,726   5.62 %
Total loans 2   16,543,998     224,757   5.46 %     15,356,804     190,020   5.02 %
Tax-exempt debt securities 3   1,720,370     15,157   3.52 %     1,761,533     16,030   3.64 %
Taxable debt securities 4, 5   8,176,974     43,477   2.13 %     8,052,662     31,084   1.54 %
Total earning assets   26,441,342     283,391   4.31 %     25,170,999     237,134   3.82 %
Goodwill and intangibles   1,051,954             1,025,716        
Non-earning assets   611,550             478,962        
Total assets $ 28,104,846           $ 26,675,677        
Liabilities                      
Non-interest bearing deposits $ 5,966,546   $   %   $ 7,274,228   $   %
NOW and DDA accounts   5,275,703     15,918   1.21 %     5,080,175     2,271   0.18 %
Savings accounts   2,900,649     5,655   0.78 %     3,107,559     514   0.07 %
Money market deposit accounts   2,948,294     14,393   1.96 %     3,468,953     5,834   0.68 %
Certificate accounts   3,000,713     31,175   4.18 %     984,770     2,584   1.06 %
Total core deposits   20,091,905     67,141   1.34 %     19,915,685     11,203   0.23 %
Wholesale deposits 6   3,965     55   5.50 %     120,468     1,342   4.52 %
Repurchase agreements   1,513,397     12,598   3.35 %     1,035,582     4,606   1.80 %
FHLB advances   350,754     4,249   4.79 %     1,990,833     23,605   4.74 %
FRB Bank Term Funding   2,483,077     27,097   4.39 %     280,944     3,032   4.32 %
Subordinated debentures and other borrowed funds   218,271     1,782   3.28 %     209,547     1,908   3.69 %
Total funding liabilities   24,661,369     112,922   1.84 %     23,553,059     45,696   0.79 %
Other liabilities   356,554             217,245        
Total liabilities   25,017,923             23,770,304        
Stockholders’ Equity                      
Stockholders’ equity   3,086,923             2,905,373        
Total liabilities and stockholders’ equity $ 28,104,846           $ 26,675,677        
Net interest income (tax-equivalent)     $ 170,469           $ 191,438    
Net interest spread (tax-equivalent)         2.47 %           3.03 %
Net interest margin (tax-equivalent)         2.59 %           3.08 %

______________________________ 

1   Includes tax effect of $1.6 million and $1.8 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2024 and 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 $2.2 million and $3.3 million on tax-exempt debt securities income for the three months ended March 31, 2024 and 2023, respectively.
4   Includes interest income of $15.3 million and $2.1 million on average interest-bearing cash balances of $1.12 billion and $176.9 million for the three months ended March 31, 2024 and 2023, respectively.
5   Includes tax effect of $215 thousand and $215 thousand on federal income tax credits for the three months ended March 31, 2024 and 2023, respectively.
6   Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
 
Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
 
  Loans Receivable, by Loan Type   % Change from
(Dollars in thousands) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
  Dec 31,
2023
  Mar 31,
2023
Custom and owner occupied construction $ 273,835     $ 290,572     $ 295,604     (6 )%   (7 )%
Pre-sold and spec construction   223,294       236,596       312,715     (6 )%   (29 )%
Total residential construction   497,129       527,168       608,319     (6 )%   (18 )%
Land development   215,828       232,966       230,823     (7 )%   (6 )%
Consumer land or lots   188,635       187,545       187,498     1 %   1 %
Unimproved land   103,032       87,739       104,811     17 %   (2 )%
Developed lots for operative builders   47,591       56,142       69,896     (15 )%   (32 )%
Commercial lots   92,748       87,185       91,780     6 %   1 %
Other construction   915,782       900,547       965,244     2 %   (5 )%
Total land, lot, and other construction   1,563,616       1,552,124       1,650,052     1 %   (5 )%
Owner occupied   3,057,348       3,035,768       2,885,798     1 %   6 %
Non-owner occupied   3,920,696       3,742,916       3,631,158     5 %   8 %
Total commercial real estate   6,978,044       6,778,684       6,516,956     3 %   7 %
Commercial and industrial   1,371,201       1,363,479       1,353,919     1 %   1 %
Agriculture   929,420       772,458       715,863     20 %   30 %
1st lien   2,276,638       2,127,989       1,864,294     7 %   22 %
Junior lien   51,579       47,230       42,397     9 %   22 %
Total 1-4 family   2,328,217       2,175,219       1,906,691     7 %   22 %
Multifamily residential   881,117       796,538       649,148     11 %   36 %
Home equity lines of credit   947,652       979,891       893,037     (3 )%   6 %
Other consumer   223,566       229,154       224,125     (2 )%   %
Total consumer   1,171,218       1,209,045       1,117,162     (3 )%   5 %
States and political subdivisions   848,454       834,947       806,878     2 %   5 %
Other   191,121       204,111       208,085     (6 )%   (8 )%
Total loans receivable, including loans held for sale   16,759,537       16,213,773       15,533,073     3 %   8 %
Less loans held for sale 1   (27,035 )     (15,691 )     (14,461 )   72 %   87 %
Total loans receivable $ 16,732,502     $ 16,198,082     $ 15,518,612     3 %   8 %

______________________________ 

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 Type

  Non-
Accrual
Loans
  Accruing
Loans 90
Days
or More Past
Due
  Other real
estate owned
and
foreclosed
assets
(Dollars in thousands) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
  Mar 31,
2024
  Mar 31,
2024
  Mar 31,
2024
Custom and owner occupied construction $ 210   214   220   210    
Pre-sold and spec construction   1,049   763   1,548     1,049  
Total residential construction   1,259   977   1,768   210   1,049  
Land development   28   35   129   28    
Consumer land or lots   144   96   112   144    
Unimproved land       51      
Developed lots for operative builders   608   608   607     608  
Commercial lots   2,205   47   188   2,158   47  
Other construction       12,884      
Total land, lot and other construction   2,985   786   13,971   2,330   655  
Owner occupied   1,501   1,838   2,682   799   270   432
Non-owner occupied   8,853   11,016   4,544   8,596   257  
Total commercial real estate   10,354   12,854   7,226   9,395   527   432
Commercial and Industrial   1,698   1,971   2,001   1,100   447   151
Agriculture   2,855   2,558   2,573   2,426   429  
1st lien   2,930   2,664   2,015   2,540   390  
Junior lien   69   180   111   44   25  
Total 1-4 family   2,999   2,844   2,126   2,584   415  
Multifamily residential   395   395     395    
Home equity lines of credit   1,892   2,043   1,225   1,727   165  
Other consumer   927   1,187   1,062   571   48   308
Total consumer   2,819   3,230   2,287   2,298   213   308
Other   61   16   27     61  
Total $ 25,425   25,631   31,979   20,738   3,796   891
 
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
 
  Accruing 30-89 Days Delinquent Loans, by Loan Type   % Change from
(Dollars in thousands) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
  Dec 31,
2023
  Mar 31,
2023
Custom and owner occupied construction $ 4,784   $ 2,549   $ 1,624   88%   195%
Pre-sold and spec construction   1,181     1,219       (3)%   n/m
Total residential construction   5,965     3,768     1,624   58%   267%
Land development   59     163     946   (64)%   (94)%
Consumer land or lots   332     624     668   (47)%   (50)%
Unimproved land   575           n/m   n/m
Commercial lots   1,225     2,159       (43)%   n/m
Other construction   1,248         5,264   n/m   (76)%
Total land, lot and other construction   3,439     2,946     6,878   17%   (50)%
Owner occupied   2,991     2,222     1,783   35%   68%
Non-owner occupied   18,118     14,471     429   25%   4,123%
Total commercial real estate   21,109     16,693     2,212   26%   854%
Commercial and industrial   14,806     12,905     3,677   15%   303%
Agriculture   3,922     594     947   560%   314%
1st lien   5,626     3,768     3,321   49%   69%
Junior lien   145     1     385   14,400%   (62)%
Total 1-4 family   5,771     3,769     3,706   53%   56%
Multifamily Residential           201   n/m   (100)%
Home equity lines of credit   3,668     4,518     2,804   (19)%   31%
Other consumer   1,948     3,264     1,598   (40)%   22%
Total consumer   5,616     7,782     4,402   (28)%   28%
Other   1,795     1,510     1,346   19%   33%
Total $ 62,423   $ 49,967   $ 24,993   25%   150%

______________________________

n/m – not measurable

 
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
 
  Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan Type
  Charge-Offs   Recoveries
(Dollars in thousands) Mar 31,
2024
  Dec 31,
2023
  Mar 31,
2023
  Mar 31,
2024
  Mar 31,
2024
Pre-sold and spec construction   (4 )   (15 )   (4 )     4
Total residential construction   (4 )   (15 )   (4 )     4
Land development   (1 )   (135 )         1
Consumer land or lots   (1 )   (19 )         1
Other construction       889          
Total land, lot and other construction   (2 )   735           2
Owner occupied   (3 )   (59 )   (68 )     3
Non-owner occupied   (1 )   799     298       1
Total commercial real estate   (4 )   740     230       4
Commercial and industrial   328     364     (382 )   674   346
Agriculture   68             68  
1st lien   (4 )   66     44       4
Junior lien   (5 )   24     (5 )   10   15
Total 1-4 family   (9 )   90     39     10   19
Multifamily residential       (136 )        
Home equity lines of credit   5     (6 )   (39 )   15   10
Other consumer   251     1,097     125     342   91
Total consumer   256     1,091     86     357   101
Other   2,439     7,447     1,970     3,186   747
Total $ 3,072     10,316     1,939     4,295   1,223
                           

Visit our website at www.glacierbancorp.com


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