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Glacier Bancorp, Inc. Announces Results for the Quarter and Year Ended December 31, 2020
ソース: Nasdaq GlobeNewswire / 28 1 2021 15:30:01 America/Chicago
4th Quarter 2020 Highlights:
- Record net income of $81.9 million, an increase of $24.5 million, or 43 percent, over the prior year fourth quarter net income of $57.4 million.
- Diluted earnings per share of $0.86, an increase of 39 percent from the prior year fourth quarter diluted earnings per share of $0.62.
- Gain on sale of loans of $26.2 million, increased $16.1 million, or 159 percent, compared to the prior year fourth quarter.
- Bank loan modifications related to the coronavirus disease of 2019 (“COVID-19”) decreased $371 million from the prior quarter and decreased $1.420 billion from the second quarter to $94.9 million, or 93 basis points of loans excluding the PPP loans.
- Non-performing assets as a percentage of subsidiary assets was 0.19 percent, which compared to 0.25 percent in the prior quarter and 0.27 percent in the prior year fourth quarter.
- Core deposits increased $579 million, or 4 percent.
- The loan portfolio, excluding Payroll Protection Program (“PPP”) loans, organically increased $43.2 million, or 42 basis points, in the current quarter.
- The Company was active in submitting applications to the SBA for PPP loan forgiveness resulting in a $539 million decrease, or 37 percent, in the PPP loan portfolio and a $14.0 million acceleration of net deferred fees included in interest income.
- Declared and paid a regular quarterly dividend of $0.30 per share. The Company has declared 143 consecutive quarterly dividends and has increased the dividend 46 times.
- Declared a special dividend of $0.15 per share. This was the 17th special dividend the Company has declared.
Year 2020 Highlights:
- Record net income of $266 million for 2020, an increase of $55.9 million, or 27 percent, over the prior year net income of $211 million.
- Diluted earnings per share of $2.81, an increase of 18 percent from the prior year diluted earnings per share of $2.38.
- The Company originated U.S. Small Business Administration (“SBA”) PPP loans for businesses in its communities. The Company originated 16,090 PPP loans in the amount of $1.472 billion.
- The loan portfolio organically grew $1.158 billion, or 12 percent, during 2020. Excluding PPP loans, the loan portfolio organically increased $249 million, or 3 percent during the current year.
- Core deposits organically increased $3.4 billion, or 32 percent, during 2020, with non-interest bearing deposit growth of $1.6 billion, or 44 percent.
- A record year for gain on sale of loans of $99.5 million, which increased $65.4 million, or 192 percent, compared to the prior year.
- Dividends declared of $1.33 per share, an increase of $0.02 per share, or 2 percent, over the prior year dividends of $1.31.
- On February 29, 2020, the Company completed the acquisition of State Bank Corp., the parent company of State Bank of Arizona, a community bank based in Lake Havasu City, Arizona with total assets of $745 million.
- During the current year, S&P Dow Jones Indices selected the Company to transition from the S&P SmallCap 600® to the S&P MidCap 400®.
Financial Highlights
At or for the Three Months ended At or for the Year ended (Dollars in thousands, except per share and market data) Dec 31,
2020Sep 30,
2020Jun 30,
2020Mar 31,
2020Dec 31,
2019Dec 31,
2020Dec 31,
2019Operating results Net income $ 81,860 77,757 63,444 43,339 57,410 266,400 210,544 Basic earnings per share $ 0.86 0.81 0.67 0.46 0.62 2.81 2.39 Diluted earnings per share $ 0.86 0.81 0.66 0.46 0.62 2.81 2.38 Dividends declared per share 1 $ 0.45 0.30 0.29 0.29 0.49 1.33 1.31 Market value per share Closing $ 46.01 32.05 35.29 34.01 45.99 46.01 45.99 High $ 47.05 38.13 46.54 46.10 46.51 47.05 46.51 Low $ 31.29 30.05 30.30 26.66 38.99 26.66 37.58 Selected ratios and other data Number of common stock shares outstanding 95,426,364 95,413,743 95,409,061 95,408,274 92,289,750 95,426,364 92,289,750 Average outstanding shares - basic 95,418,958 95,411,656 95,405,493 93,287,670 92,243,133 94,833,864 88,255,290 Average outstanding shares - diluted 95,492,258 95,442,576 95,430,403 93,359,792 92,365,021 94,932,353 88,385,775 Return on average assets (annualized) 1.78 % 1.80 % 1.57 % 1.25 % 1.67 % 1.62 % 1.64 % Return on average equity (annualized) 14.27 % 13.73 % 11.68 % 8.52 % 11.61 % 12.15 % 12.01 % Efficiency ratio 50.34 % 48.05 % 47.54 % 54.65 % 54.90 % 49.97 % 57.78 % Dividend payout ratio 2 52.33 % 37.04 % 43.28 % 63.04 % 79.03 % 47.33 % 54.81 % Loan to deposit ratio 76.29 % 82.29 % 86.45 % 88.10 % 88.92 % 76.29 % 88.92 % Number of full time equivalent employees 2,970 2,946 2,954 2,955 2,826 2,970 2,826 Number of locations 193 193 192 192 181 193 181 Number of ATMs 250 250 251 247 248 250 248 ______________________
1 Includes a special dividend declared of $0.15 and $0.20 per share for the three and twelve months ended December 31, 2020 and December 31, 2019, respectively.
2 Excluding the special dividend, the dividend payout ratio was 34.88 percent and 46.77 percent for the three months ended December 31, 2020 and 2019, respectively and 41.99 percent and 46.44 percent for the twelve months ended December 31, 2020 and 2019, respectively.KALISPELL, Mont., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $81.9 million for the current quarter, an increase of $24.5 million, or 43 percent, from the $57.4 million of net income for the prior year fourth quarter. Diluted earnings per share for the current quarter was $0.86 per share, an increase of 39 percent from the prior year fourth quarter diluted earnings per share of $0.62. “While the pandemic has created a difficult time for the country and our Company, the Glacier Team did an outstanding job managing through the challenges and still delivering excellent results for the quarter and full year,” said Randy Chesler, President and Chief Executive Officer. “We are especially pleased with our credit performance which reflects the strong markets in which we operate as well as our conservative lending culture. We are optimistic about the future and the opportunity for continued profitable growth.”
Net income for 2020 was $266 million, an increase of $55.9 million, or 27 percent, from the $211 million net income from the prior year. Diluted earnings per share for the current year was $2.81 per share, an increase of 18 percent, from the diluted earnings per share of $2.38 for last year.
In order to meet the needs of customers impacted by the pandemic, during the second quarter of 2020 the Company modified 3,054 loans in the amount of $1.515 billion primarily with short-term payment deferrals under six months. The majority of these modified loan deferral periods expired and the loans returned to regular payment status with only $94.9 million loans, or 93 basis points, remaining deferred as of December 31, 2020.
In addition, the Company originated SBA PPP loans primarily for small businesses in its communities. The Company originated 16,090 PPP loans in the amount of $1.472 billion during the current year. The majority of the PPP loans are expected to be forgiven by the SBA resulting in the forgiven loan amounts paid to the Company by the SBA. During the current quarter, the PPP loans provided $21.5 million of interest income (including deferred fees and deferred costs) of which $14.0 million was accelerated by the SBA forgiveness.
On February 29, 2020, the Company completed the acquisition of State Bank Corp., the parent company of State Bank of Arizona, a community bank based in Lake Havasu City, Arizona (collectively, “SBAZ”). SBAZ provides banking services to individuals and businesses in Arizona with ten banking offices located in Bullhead City, Cottonwood, Kingman, Lake Havasu City, Phoenix, Prescott Valley and Prescott. Upon closing of the transaction, SBAZ merged into the Company's Foothills Bank division, which expanded the Company's footprint in Arizona to cover all major markets in the state and established it as a leading community bank in Arizona.
The Company’s results of operations and financial condition include the SBAZ acquisition and the following table discloses the preliminary fair value estimates of selected classifications of assets and liabilities acquired:
State Bank Corp. (Dollars in thousands) February 29,
2020Total assets $ 745,420 Debt securities 142,174 Loans receivable 451,702 Non-interest bearing deposits 141,620 Interest bearing deposits 461,669 Borrowings 10,904 Asset Summary
$ Change from (Dollars in thousands) Dec 31,
2020Sep 30,
2020Dec 31,
2019Sep 30,
2020Dec 31,
2019Cash and cash equivalents $ 633,142 769,879 330,961 (136,737 ) 302,181 Debt securities, available-for-sale 5,337,814 4,125,548 2,575,252 1,212,266 2,762,562 Debt securities, held-to-maturity 189,836 193,509 224,611 (3,673 ) (34,775 ) Total debt securities 5,527,650 4,319,057 2,799,863 1,208,593 2,727,787 Loans receivable Residential real estate 802,508 862,614 926,388 (60,106 ) (123,880 ) Commercial real estate 6,315,895 6,201,817 5,579,307 114,078 736,588 Other commercial 3,054,817 3,593,322 2,094,254 (538,505 ) 960,563 Home equity 636,405 646,850 617,201 (10,445 ) 19,204 Other consumer 313,071 314,128 295,660 (1,057 ) 17,411 Loans receivable 11,122,696 11,618,731 9,512,810 (496,035 ) 1,609,886 Allowance for credit losses (158,243 ) (164,552 ) (124,490 ) 6,309 (33,753 ) Loans receivable, net 10,964,453 11,454,179 9,388,320 (489,726 ) 1,576,133 Other assets 1,378,961 1,382,952 1,164,855 (3,991 ) 214,106 Total assets $ 18,504,206 17,926,067 13,683,999 578,139 4,820,207 Total debt securities of $5.528 billion at December 31, 2020 increased $1.209 billion, or 28 percent, during the current quarter and increased $2.728 billion, or 97 percent, from the prior year end. The Company continues to purchase debt securities with excess liquidity from the increase in core deposits and SBA forgiveness of PPP loans. Debt securities represented 30 percent of total assets at December 31, 2020 compared to 24 percent of total assets at September 30, 2020 and 20 percent of total assets at December 31, 2019.
The loan portfolio of $11.123 billion decreased $496 million, or 4 percent, during the current quarter which was driven by the SBA forgiveness of the PPP loans. Excluding the decrease in the PPP loans, the loan portfolio increased $43.2 million, or 42 basis points, during the current quarter with the largest increase in commercial real estate loans which increased $114 million, or 2 percent. Excluding the PPP loans and the SBAZ acquisition, the loan portfolio increased $249 million, or 3 percent, from the prior year end with the largest increase in commercial real estate loans which increased $401 million, or 7 percent.
Credit Quality Summary
At or for the Year
endedAt or for the Nine
Months endedAt or for the Year
ended(Dollars in thousands) Dec 31,
2020Sep 30,
2020Dec 31,
2019Allowance for credit losses Balance at beginning of period $ 124,490 124,490 131,239 Impact of adopting CECL 3,720 3,720 — Acquisitions 49 49 — Provision for credit losses 37,637 39,165 57 Charge-offs (13,808 ) (7,865 ) (15,178 ) Recoveries 6,155 4,993 8,372 Balance at end of period $ 158,243 164,552 124,490 Other real estate owned $ 1,744 5,361 5,142 Accruing loans 90 days or more past due 1,725 2,952 1,412 Non-accrual loans 31,964 36,350 30,883 Total non-performing assets $ 35,433 44,663 37,437 Non-performing assets as a percentage of subsidiary assets 0.19 % 0.25 % 0.27 % Allowance for credit losses as a percentage of non-performing loans 470 % 419 % 385 % Allowance for credit losses as a percentage of total loans 1.42 % 1.42 % 1.31 % Net charge-offs as a percentage of total loans 0.07 % 0.03 % 0.07 % Accruing loans 30-89 days past due $ 22,721 17,631 23,192 Accruing troubled debt restructurings $ 42,003 39,999 34,055 Non-accrual troubled debt restructurings $ 3,507 7,579 3,346 U.S. government guarantees included in non-performing assets $ 3,011 4,411 1,786 Non-performing assets of $35.4 million at December 31, 2020 decreased $9.2 million, or 21 percent, over the prior quarter and decreased $2.0 million, or 5 percent, over the prior year fourth quarter. Non-performing assets as a percentage of subsidiary assets at December 31, 2020 was 0.19 percent. Excluding the government guaranteed PPP loans, the non-performing assets as a percentage of subsidiary assets at December 31, 2020 was 0.20 percent, a decrease of 7 basis points from the prior quarter and from the prior year end. Early stage delinquencies (accruing loans 30-89 days past due) of $22.7 million at December 31, 2020 increased $5.1 million from the prior quarter and decreased $471 thousand from the prior year fourth quarter. Early stage delinquencies as a percentage of loans at December 31, 2020 was 0.20 percent, which was an increase of 5 basis points from prior quarter and a 4 basis points decrease from prior year fourth quarter. Excluding PPP loans, early stage delinquencies as a percentage of loans at December 31, 2020 was 0.22 percent, which was an increase of 5 basis points from prior quarter and a 2 basis points decrease from prior year fourth quarter.
During the current quarter, the Company reclassified the current year credit loss expense for unfunded loan commitments from non-interest expense to provision for credit losses in the income statement. The Company believes reporting the credit loss expense on unfunded loan commitments together with credit loss expense on the loan portfolio is more appropriate than reporting credit loss expense on unfunded loan commitments as non-interest expense. The current quarter provision for credit loss benefit of $1.5 million included a provision for credit loss benefit of $1.5 million on the loan portfolio and a provision for credit loss benefit of $8 thousand on unfunded loan commitments.
The current quarter provision for credit loss benefit on loans was a decrease of $4.4 million from the prior quarter provision for credit loss expense of $2.9 million. The current year provision for credit loss expense on loans was $37.6 million and primarily attributable to provision for credit losses related to COVID-19 and an additional $4.8 million of provision for credit losses related to the SBAZ acquisition. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at December 31, 2020 was 1.42 percent which remained unchanged compared to the prior quarter. Excluding the PPP loans, the ACL as percentage of loans was 1.55 percent compared to 1.62 percent in as of the prior quarter.
Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio
(Dollars in thousands) Provision for Credit Losses Loans Net
Charge-OffsACL
as a Percent
of LoansAccruing
Loans 30-89
Days Past Due
as a Percent of
LoansNon-Performing
Assets to
Total Subsidiary
AssetsFourth quarter 2020 $ (1,528 ) $ 4,781 1.42 % 0.20 % 0.19 % Third quarter 2020 2,869 826 1.42 % 0.15 % 0.25 % Second quarter 2020 13,552 1,233 1.42 % 0.22 % 0.27 % First quarter 2020 22,744 813 1.49 % 0.41 % 0.26 % Fourth quarter 2019 — 1,045 1.31 % 0.24 % 0.27 % Third quarter 2019 — 3,519 1.32 % 0.31 % 0.40 % Second quarter 2019 — 732 1.46 % 0.43 % 0.41 % First quarter 2019 57 1,510 1.56 % 0.44 % 0.42 % Net charge-offs for the current quarter were $4.8 million compared to $826 thousand for the prior quarter and $1.0 million from the same quarter last year. The current quarter increase was primarily isolated to one credit relationship. The increase in the current 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.
PPP Loans
December 31, 2020 (Dollars in thousands) Number of
PPP LoansAmount of
PPP LoansTotal Loans
Receivable, Net of PPP LoansPPP Loans (Amount) as a Percent of Total Loans
Receivable, Net of PPP LoansResidential real estate — $ — 802,508 — % Commercial real estate and other commercial Real estate rental and leasing 896 37,285 3,484,537 1.07 % Accommodation and food services 1,200 108,273 657,770 16.46 % Healthcare 1,389 210,349 835,642 25.17 % Manufacturing 594 43,798 182,565 23.99 % Retail and wholesale trade 1,166 99,504 471,282 21.11 % Construction 1,607 128,101 758,308 16.89 % Other 4,532 281,863 2,071,435 13.61 % Home equity and other consumer — — 949,476 — % Total 11,384 $ 909,173 10,213,523 8.90 % During the current year, the PPP loan originations generated $55.2 million of SBA processing fees, or an average of 3.75 percent, and $8.9 million of deferred compensation costs for total net deferred fees of $46.3 million. During the current quarter, the Company actively worked with its customers to submit applications to the SBA for PPP loan forgiveness which resulted in a decrease of $539 million, or 37 percent, of the PPP loans.
The Company recognized $38.2 million of interest income (including deferred fees and costs) from the PPP loans in 2020, which included $14.0 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of PPP loans at December 31, 2020 were $17.6 million, which will be recognized into interest income over the remaining life of the loans or when the loans are forgiven in whole or in part by the SBA.
COVID-19 Bank Loan Modifications
December 31, 2020 September 30, 2020 (Dollars in thousands) Total Loans Receivable, Net of PPP Loans Amount of Unexpired Original Loan Modifications Amount of
Re-deferral Loan ModificationsAmount of
Remaining Loan
ModificationsLoan Modifications (Amount) as a Percent of Total Loans
Receivable, Net of PPP LoansAmount of
Remaining Loan
ModificationsLoan Modifications (Amount) as a Percent of Total Loans
Receivable, Net of PPP LoansResidential real estate $ 802,508 4,322 — 4,322 0.54 % $ 28,571 3.31 % Commercial real estate and other commercial Real estate rental and leasing 3,484,537 39,329 3,984 43,313 1.24 % 206,838 6.15 % Accommodation and food services 657,770 8,151 13,903 22,054 3.35 % 82,182 12.75 % Healthcare 835,642 1,043 88 1,131 0.14 % 43,253 5.23 % Manufacturing 182,565 6,806 2,682 9,488 5.20 % 18,559 9.61 % Retail and wholesale trade 471,282 2,655 — 2,655 0.56 % 15,853 3.36 % Construction 758,308 927 — 927 0.12 % 14,525 1.88 % Other 2,071,435 216 10,039 10,255 0.50 % 50,588 2.44 % Home equity and other consumer 949,476 705 — 705 0.07 % 5,767 0.60 % Total $ 10,213,523 64,154 30,696 94,850 0.93 % $ 466,136 4.58 % In response to COVID-19, the Company modified 3,054 loans in the amount of $1.515 billion during the second quarter of 2020. These modifications were primarily short-term payment deferrals under six months. During the second half of 2020, the majority of the modified loan deferral periods expired, and the loans returned to regular payment status. As of December 31, 2020, $94.9 million of the modifications, or 93 basis points of the $10.214 billion of loans, net of the PPP loans, remain in the deferral period, a reduction of $371 million in the current quarter and a reduction of $1.420 billion from the $1.515 billion of the original loan modifications in the second quarter.
In addition to the Bank loan modifications presented above, the state of Montana created the Montana Loan Deferment Program for only Montana-based businesses and was implemented only in the third quarter. Cares Act Funds were used to provide interest payments upfront and directly to lenders on behalf of participating borrowers to convert existing commercial loans to interest only status, resulting in the deferral of principal and interest for a period of six to twelve months. None of the interest payments are required to be repaid by the borrowers, thus providing a grant to the borrowers. This program was unique to Montana, had minimal qualification requirements, and required that participating lenders modify eligible loans to conform to the program in order for borrowers to qualify for the grant. As of December 31, 2020, the Company had $278 million in eligible loans benefiting from this grant program, which was 2.8 percent of total loans receivable, net of PPP loans. Given the unique nature of the Montana only grant program, the $278 million was not included in the Bank loan modifications presented above.
COVID-19 Higher Risk Industries - Enhanced Monitoring
December 31, 2020 September 30, 2020 (Dollars in thousands) Enhanced Monitoring Total Loans Receivable, Net of PPP Loans Percent of Total Loans Receivable, Net of PPP Loans Amount of Unexpired Original
Loan ModificationsAmount of
Re-deferral Loan ModificationsAmount of
Remaining Loan
ModificationsLoan Modifications (Amount) as a Percent of Enhanced Monitoring Loans
Receivable, Net of PPP LoansAmount of
Remaining Loan
ModificationsPercent of Total Loans Receivable, Net of PPP Loans Loan Modifications (Amount) as a Percent of Enhanced Monitoring Loans
Receivable, Net of PPP LoansHotel and motel $ 428,868 4.20 % 6,074 7,958 14,032 3.27 % $ 50,770 4.15 % 12.02 % Restaurant 154,055 1.51 % 2,054 5,945 7,999 5.19 % 19,152 1.37 % 13.78 % Travel and tourism 22,018 0.22 % — — — — % 5,002 0.19 % 25.36 % Gaming 14,220 0.14 % — — — — % 1,101 0.14 % 7.59 % Oil and gas 23,158 0.23 % 494 941 1,435 6.20 % 1,474 0.22 % 6.65 % Total $ 642,319 6.29 % 8,622 14,844 23,466 3.65 % $ 77,499 6.08 % 12.54 %
Excluding the PPP loans, the Company has $642 million, or 6 percent, of its total loan portfolio with direct exposure to industries for which it has identified as higher risk, requiring enhanced monitoring. As of December 31, 2020, $23.5 million, or 3.65 percent, of the loans in the higher risk industries have modifications which was a reduction of $54.0 million, or 70 percent, from the $77.5 million of modifications at the end of the prior quarter. The Company continues to conduct enhanced portfolio reviews and monitoring for potential credit deterioration.Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on regulatory classification is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.
Liability Summary
$ Change from (Dollars in thousands) Dec 31,
2020Sep 30,
2020Dec 31,
2019Sep 30,
2020Dec 31,
2019Deposits Non-interest bearing deposits $ 5,454,539 5,479,311 3,696,627 (24,772 ) 1,757,912 NOW and DDA accounts 3,698,559 3,300,152 2,645,404 398,407 1,053,155 Savings accounts 2,000,174 1,864,143 1,485,487 136,031 514,687 Money market deposit accounts 2,627,336 2,557,294 1,937,141 70,042 690,195 Certificate accounts 978,779 979,857 958,501 (1,078 ) 20,278 Core deposits, total 14,759,387 14,180,757 10,723,160 578,630 4,036,227 Wholesale deposits 38,142 119,131 53,297 (80,989 ) (15,155 ) Deposits, total 14,797,529 14,299,888 10,776,457 497,641 4,021,072 Repurchase agreements 1,004,583 965,668 569,824 38,915 434,759 Federal Home Loan Bank advances — 7,318 38,611 (7,318 ) (38,611 ) Other borrowed funds 33,068 32,967 28,820 101 4,248 Subordinated debentures 139,959 139,918 139,914 41 45 Other liabilities 222,026 225,219 169,640 (3,193 ) 52,386 Total liabilities $ 16,197,165 15,670,978 11,723,266 526,187 4,473,899 Core deposits of $14.759 billion as of December 31, 2020 increased $579 million, or 4 percent, from the prior quarter. Excluding the SBAZ acquisition, core deposits increased $3.433 billion, or 32 percent, from the prior year end, with non-interest bearing deposits increasing $1.616 billion, or 44 percent. The current year significant increase in deposits was attributable to a number of factors including the PPP loan proceeds deposited by customers and the increase in customer savings. Non-interest bearing deposits were 37 percent of total core deposits at December 31, 2020 compared to 39 percent of total core deposits at September 30, 2020 and 34 percent at December 31, 2019.
Wholesale deposits of $38.1 million at December 31, 2020 decreased $81.0 million, or 68 percent, from the prior quarter and decreased $15.2 million, or 28 percent, from the prior year end. The remaining wholesale deposits at December 31, 2020 had contractual maturities. Federal Home Loan Bank (“FHLB”) advances were paid off as of December 31, 2020 which resulted in a decrease of $7.3 million from the prior quarter and a decrease of $38.6 million from the prior year. The reduction in wholesale deposits and FHLB advances were the result of the significant increase in core deposits which funded loans and debt security growth. Wholesale deposits and FHLB advances will continue to fluctuate as necessary for balance sheet growth and to supplement liquidity needs of the Company.
Stockholders’ Equity Summary
$ Change from (Dollars in thousands, except per share data) Dec 31,
2020Sep 30,
2020Dec 31,
2019Sep 30,
2020Dec 31,
2019Common equity $ 2,163,951 2,123,991 1,920,507 39,960 243,444 Accumulated other comprehensive income 143,090 131,098 40,226 11,992 102,864 Total stockholders’ equity 2,307,041 2,255,089 1,960,733 51,952 346,308 Goodwill and core deposit intangible, net (569,522 ) (572,134 ) (519,704 ) 2,612 (49,818 ) Tangible stockholders’ equity $ 1,737,519 1,682,955 1,441,029 54,564 296,490 Stockholders’ equity to total assets 12.47 % 12.58 % 14.33 % Tangible stockholders’ equity to total tangible assets 9.69 % 9.70 % 10.95 % Book value per common share $ 24.18 23.63 21.25 0.55 2.93 Tangible book value per common share $ 18.21 17.64 15.61 0.57 2.60 Tangible stockholders’ equity of $1.738 billion at December 31, 2020 increased $54.6 million, or 3 percent, from the prior quarter and was primarily the result of earnings retention and an increase in other comprehensive income. Tangible stockholders’ equity increased $296 million over the prior year, which was the result of $112 million of Company stock issued for the acquisitions of SBAZ and an increase in other comprehensive income and earnings retention. These increases more than offset the increase in goodwill and core deposit intangible associated with the acquisition. The current year decrease in both the stockholder’s equity to total assets ratio and the tangible stockholders’ equity to total tangible assets ratio was primarily the result of adding $909 million of PPP loans and $2.7 billion in debt securities. Tangible book value per common share of $18.21 at the current quarter end increased $0.57 per share from the prior quarter and increased $2.60 per share from a year ago.
Cash Dividends
On December 29, 2020, the Company’s Board of Directors declared a special cash dividend of $0.15 per share, the 17th special dividend the Company has declared. The special dividend was payable on January 19, 2021 to shareholders of record on January 8, 2021. On November 18, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.30 per share. The regular quarterly dividend was payable December 17, 2020 to shareholders of record on December 8, 2020. The dividend was the 143rd consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.S&P MidCap 400® Index
During the second quarter of 2020, S&P Dow Jones Indices selected the Company to transition from the S&P SmallCap 600® to the S&P MidCap 400®. S&P MidCap 400® index consists of 400 companies that are chosen with regard to market capitalization, liquidity and industry representations.Operating Results for Three Months Ended December 31, 2020
Compared to September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019Income Summary
Three Months ended (Dollars in thousands) Dec 31,
2020Sep 30,
2020Jun 30,
2020Mar 31,
2020Dec 31,
2019Net interest income Interest income $ 171,308 157,487 155,404 142,865 145,281 Interest expense 5,550 6,084 7,185 8,496 8,833 Total net interest income 165,758 151,403 148,219 134,369 136,448 Non-interest income Service charges and other fees 13,713 13,404 11,366 14,020 14,756 Miscellaneous loan fees and charges 2,293 2,084 1,682 1,285 1,379 Gain on sale of loans 26,214 35,516 25,858 11,862 10,135 Gain on sale of investments 124 24 128 863 257 Other income 2,360 2,639 2,190 5,242 1,890 Total non-interest income 44,704 53,667 41,224 33,272 28,417 Total income 210,462 205,070 189,443 167,641 164,865 Net interest margin (tax-equivalent) 4.03 % 3.92 % 4.12 % 4.36 % 4.45 % $ Change from (Dollars in thousands) Sep 30,
2020Jun 30,
2020Mar 31,
2020Dec 31,
2019Net interest income Interest income $ 13,821 15,904 28,443 26,027 Interest expense (534 ) (1,635 ) (2,946 ) (3,283 ) Total net interest income 14,355 17,539 31,389 29,310 Non-interest income Service charges and other fees 309 2,347 (307 ) (1,043 ) Miscellaneous loan fees and charges 209 611 1,008 914 Gain on sale of loans (9,302 ) 356 14,352 16,079 Gain on sale of investments 100 (4 ) (739 ) (133 ) Other income (279 ) 170 (2,882 ) 470 Total non-interest income (8,963 ) 3,480 11,432 16,287 Total income $ 5,392 21,019 42,821 45,597 Net Interest Income
The current quarter net interest income of $166 million increased $14.4 million, or 9 percent, over the prior quarter and increased $29.3 million, or 21 percent, from the prior year fourth quarter. The current quarter interest income of $171 million increased $13.8 million, or 9 percent, compared to the prior quarter and increased $26.0 million, or 18 percent, over the prior year fourth quarter. These increases include increased income from commercial loans (primarily from the PPP loans) and increased income on debt securities. The interest income (which included deferred fees and deferred costs) from the PPP loans was $21.5 million in the current quarter and $9.3 million in the prior quarter.The current quarter interest expense of $5.6 million decreased $534 thousand, or 9 percent, over the prior quarter and decreased $3.3 million, or 37 percent, over the prior year fourth quarter primarily as result of a decrease in deposit rates and borrowing interest rates. During the current quarter, the total cost of funding (including non-interest bearing deposits) declined 2 basis points to 14 basis points compared to 16 basis points for the prior quarter primarily as a result of a decrease in rates on both deposits and borrowings. The total cost of funding decreased 16 basis points from the prior year fourth quarter and was attributable to a decrease in rates and a shift from higher cost borrowings to low cost deposits.
The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.03 percent compared to 3.92 percent in the prior quarter. The core net interest margin, excluding 3 basis points of discount accretion and 24 basis points increase from the PPP loans, was 3.76 percent compared to 4.02 in the prior quarter and 4.33 percent in the prior year fourth quarter. The core net interest margin decreased 11 basis points in the current quarter and decreased 57 basis points from the prior year fourth quarter due to a decrease in earning asset yields that outpaced the decrease in the total cost of funding along with a shift in the earning asset mix from higher yielding loans to lower yielding debt securities.
Non-interest Income
Non-interest income for the current quarter totaled $44.7 million which was a decrease of $9.0 million, or 17 percent, over the prior quarter and an increase of $16.3 million, or 57 percent, over the same quarter last year. Service charges and other fees decreased $1.0 million from the prior year fourth quarter due to the decreased overdraft activity. Gain on the sale of loans of $26.2 million for the current quarter decreased $9.3 million, or 26 percent, compared to the prior quarter as a result of seasonal decreases, although remained at elevated levels as a result of the current low interest rate environment. Gain on sale of loans increased $16.1 million, or 159 percent, from the prior year fourth quarter due to the significant increase in purchase and refinance activity driven by the decrease in interest rates.Non-interest Expense Summary
Three Months ended (Dollars in thousands) Dec 31,
2020Sep 30,
2020Jun 30,
2020Mar 31,
2020Dec 31,
2019Compensation and employee benefits $ 70,540 64,866 57,981 59,660 55,543 Occupancy and equipment 9,728 9,369 9,357 9,219 9,149 Advertising and promotions 2,797 2,779 2,138 2,487 2,747 Data processing 5,211 5,597 5,042 5,282 4,972 Other real estate owned 550 186 75 112 609 Regulatory assessments and insurance 1,034 1,495 1,037 1,090 45 Core deposit intangibles amortization 2,612 2,612 2,613 2,533 2,566 Other expenses 18,715 16,469 16,521 15,104 19,621 Total non-interest expense $ 111,187 103,373 94,764 95,487 95,252 $ Change from (Dollars in thousands) Sep 30,
2020Jun 30,
2020Mar 31,
2020Dec 31,
2019Compensation and employee benefits $ 5,674 12,559 10,880 14,997 Occupancy and equipment 359 371 509 579 Advertising and promotions 18 659 310 50 Data processing (386 ) 169 (71 ) 239 Other real estate owned 364 475 438 (59 ) Regulatory assessments and insurance (461 ) (3 ) (56 ) 989 Core deposit intangibles amortization — (1 ) 79 46 Other expenses 2,246 2,194 3,611 (906 ) Total non-interest expense $ 7,814 16,423 15,700 15,935 Total non-interest expense of $111 million for the current quarter increased $7.8 million, or 8 percent, over the prior quarter and increased $16.0 million, or 17 percent, over the prior year fourth quarter. Compensation and employee benefits increased by $5.7 million, or 9 percent, from the prior quarter which was primarily driven by the increase in accrued expenses for employee benefits due to strong financial performance. Compensation and employee benefits increased $15.0 million, or 27 percent, from the prior year fourth quarter primarily due to an increased number of employees driven by acquisitions and organic growth, increased real estate commissions and increased performance-related compensation. Occupancy and equipment expense increased $579 thousand, or 6 percent, over the prior year fourth quarter primarily as a result of increased costs from acquisitions. Regulatory assessment and insurance decreased $461 thousand from the prior quarter primarily due to an accrual adjustment in the current quarter for waiver of the State of Montana regulatory semi-annual assessment for the second half of 2020. Regulatory assessment and insurance increased $989 thousand from the prior year fourth quarter primarily due to $1.3 million in Small Bank Assessment credits applied in the prior year fourth quarter which more than offset the decrease in the current quarter waiver from the State of Montana assessment.
Other expenses of $18.7 million, increased $2.2 million, or 14 percent, from the prior quarter and decreased $906 thousand, or 5 percent, from the prior year fourth quarter. Current quarter other expenses included acquisition-related expenses of $501 thousand compared to $793 thousand in the prior quarter and $4.4 million in the prior year fourth quarter.
Federal and State Income Tax Expense
Tax expense during the fourth quarter of 2020 was $19.0 million, an increase of $196 thousand, or 1 percent, compared to the prior quarter and an increase of $6.7 million, or 55 percent, from the prior year fourth quarter. The effective tax rate in the current and prior quarter was 19 percent compared to 18 percent in the prior year fourth quarter.Efficiency Ratio
The efficiency ratio was 50.34 percent in the current quarter and 48.05 percent in the prior quarter. Excluding the impact from the PPP loans, the efficiency ratio would have been 55.96 percent in the current quarter, which was a 545 basis points increase from the prior quarter efficiency ratio of 50.51 percent and was the result of the decrease in gain on sale of loans and the increase in non-interest expense during the current quarter. Excluding the current year impact from the PPP loans, the current quarter efficiency ratio of 55.96 was an increase of 106 basis points the prior year fourth quarter efficiency ratio of 54.90 and was primarily the result of the increase in compensation costs that outpaced the increase in gain on sale of loans and net interest income.Operating Results for Year Ended December 31, 2020
Compared to December 31, 2019Income Summary
Year ended (Dollars in thousands) Dec 31,
2020Dec 31,
2019$ Change % Change Net interest income Interest income $ 627,064 $ 546,177 $ 80,887 15 % Interest expense 27,315 42,773 (15,458 ) (36 )% Total net interest income 599,749 503,404 96,345 19 % Non-interest income Service charges and other fees 52,503 67,934 (15,431 ) (23 )% Miscellaneous loan fees and charges 7,344 5,313 2,031 38 % Gain on sale of loans 99,450 34,064 65,386 192 % Gain on sale of investments 1,139 14,415 (13,276 ) (92 )% Other income 12,431 9,048 3,383 37 % Total non-interest income 172,867 130,774 42,093 32 % Total Income $ 772,616 $ 634,178 $ 138,438 22 % Net interest margin (tax-equivalent) 4.09 % 4.39 % Net Interest Income
Net-interest income of $600 million for 2020 increased $96.3 million, or 19 percent, over 2019. Interest income of $627 million for the current year increased $80.9 million, or 15 percent, from the prior year and was primarily attributable to a $67.4 million increase in income from commercial loans, including $38.2 million from the PPP loans. Additionally, interest income on debt securities increased $14.1 million, or 17 percent, over the prior year which resulted from the increased volume of debt securities. Interest expense of $27.3 million for 2020 decreased $15.5 million, or 36 percent over the prior year primarily as a result of decreased higher cost FHLB advances combined with the decrease in the cost of deposits and borrowings. The total funding cost (including non-interest bearing deposits) for 2020 was 19 basis points, which decreased 20 basis points compared to 39 basis points in 2019.The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 2020 was 4.09 percent, a 30 basis points decrease from the net interest margin of 4.39 percent for 2019. The core net interest margin, excluding 3 basis points of discount accretion, 1 basis point of non-accrual interest was 4.05 compared to a core margin of 4.30 percent in the prior year. Although the Company was successful in reducing the total cost of funding, it was not enough to outpace the decrease in yields on loans and debt securities driven by the current interest rate environment and the shift in the earning asset mix to lower yielding debt securities. For the year, the 24 basis points increase in the fourth quarter net interest margin from the PPP loans offset the combined 24 basis points decrease in the net interest margin from the PPP loans that occurred in the second and third quarters of the current year.
Non-interest Income
Non-interest income of $173 million for 2020 increased $42.1 million, or 32 percent, over last year. Service charges and other fees of $52.5 million for 2020 decreased $15.4 million, or 23 percent, from prior year as a result of a decrease in overdraft activity and the impact of the Durbin Amendment which outpaced the additional fees from increased customer accounts. As of July 1, 2019, the Company became subject to the Durbin Amendment which established limits on the amount of interchange fees that can be charged to merchants for debit card processing. Miscellaneous loan fees increased $2.0 million, or 38 percent, driven by increased activity primarily in residential real estate. Gain on the sale of loans of $99.5 million for 2020, increased $65.4 million, or 192 percent, compared to the prior year as a result of a significant increase in purchase and refinance activity driven by the decrease in interest rates. Other income increased $3.4 million from the prior year and was primarily the result of a gain of $2.4 million on the sale of a former branch building in the first quarter of 2020.During the prior year third quarter, the Company terminated $260 million notional pay-fixed interest rate swaps and corresponding debt along with the sale of $308 million of available-for-sale debt securities. Sale of the investment securities resulted in a gain of $13.8 million in the prior year third quarter. Offsetting the gain was a $10 million loss recognized on the early termination of the interest swaps and a $3.5 million write-off of deferred prepayment penalties on FHLB borrowings.
Non-interest Expense Summary
Year ended (Dollars in thousands) Dec 31,
2020Dec 31,
2019$ Change % Change Compensation and employee benefits $ 253,047 $ 222,753 $ 30,294 14 % Occupancy and equipment 37,673 34,497 3,176 9 % Advertising and promotions 10,201 10,621 (420 ) (4 )% Data processing 21,132 17,392 3,740 22 % Other real estate owned 923 1,105 (182 ) (16 )% Regulatory assessments and insurance 4,656 3,771 885 23 % Loss on termination of hedging activities — 13,528 (13,528 ) (100 )% Core deposit intangibles amortization 10,370 8,485 1,885 22 % Other expenses 66,809 62,775 4,034 6 % Total non-interest expense $ 404,811 $ 374,927 $ 29,884 8 % Total non-interest expense of $405 million for 2020 increased $29.9 million, or 8 percent, over the prior year. Compensation and employee benefits for 2020 increased $30.3 million, or 14 percent, from last year due to the increased number of employees from acquisitions and organic growth, increased real estate commissions, increased performance-related compensation and annual salary increases which more than offset the $8.9 million deferral of compensation cost from the PPP loans in the current year and the $5.4 million of stock compensation expense in the prior year from the Heritage Bancorp acquisition. Occupancy and equipment expense for current year increased $3.2 million, or 9 percent from the prior year primarily from increased cost from acquisitions. Data processing expense for the current year increased $3.7 million, or 22 percent, from the prior year as a result of the increased costs from acquisitions along with increased investment in technology infrastructure. Regulatory assessment and insurance for the current year increased $885 thousand from the prior quarter primarily due to $2.5 million in Small Bank Assessment credits applied in 2019 that more than offset the $530 thousand in Small Bank credits applied in 2020 and the current year waiver of the State of Montana regulatory assessment. Other expenses of $66.8 million, increased $4.0 million, or 6 percent, from the prior year, including $1.9 million for third party consulting regarding improvements in technology, product and service offerings. Acquisition-related expenses were $7.8 million in the current year compared to $8.5 million in the prior year.
The prior year $13.5 million loss on termination of hedging activities included a $3.5 million write-off of the remaining unamortized deferred prepayment penalties on FHLB debt and a $10 million loss on the termination of pay-fixed interest rate swaps with notional amount of $260 million in the prior year third quarter.
Provision for Credit Losses
The provision for credit losses was $39.8 million for 2020, including provision for credit losses of $37.6 million on the loan portfolio and $2.1 million of provision for credit losses on unfunded loan commitments. The provision for credit losses of $37.6 million on the loan portfolio in the current year increased $37.6 million over the $57 thousand prior year provision for credit losses on the loan portfolio which was primarily attributable to changes in the economic forecast related to COVID-19. Net charge-offs during the current year were $7.6 million compared to $6.8 million during the prior year.Federal and State Income Tax Expense
Tax expense of $61.6 million in 2020 increased $13.0 million, or 27 percent, over the prior year same period. The effective tax rate for each year was 19 percent.Efficiency Ratio
The efficiency ratio was 49.97 percent for 2020. Excluding the impact from the PPP loans, the efficiency ratio would have been 53.70 percent. The prior year efficiency ratio was 57.78 and excluding the impact from the termination of the cash flow hedges and the accelerated stock compensation expense, the efficiency ratio would have been 54.79 percent. Excluding these adjustments, the current year efficiency ratio decreased 109 basis points from the prior year efficiency ratio which was driven primarily by the combined increased on gain on sale of loans and the increased net interest income that more than offset the decrease in service fee income from the Durbin Amendment and increased compensation expense.Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about management’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations in the forward-looking statements, including those set forth in this news release:- the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio;
- changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability;
- changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation and other third parties;
- legislative or regulatory changes, such as the recently adopted CARES Act addressing the economic effects of the COVID-19 pandemic, as well as increased banking and consumer protection regulation that adversely affect the Company’s business, both generally and as a result of the Company exceeding $10 billion in total consolidated assets;
- ability to complete pending or prospective future acquisitions;
- costs or difficulties related to the completion and integration of acquisitions;
- the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
- reduced demand for banking products and services;
- the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
- competition among financial institutions in the Company's markets may increase significantly;
- the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
- the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
- consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
- dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
- material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
- natural disasters, including fires, floods, earthquakes, and other unexpected events;
- the Company’s success in managing risks involved in the foregoing; and
- the effects of any reputational damage to the Company resulting from any of the foregoing.
The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.
Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, January 29, 2021. The conference call will be accessible by telephone and webcast. Interested individuals are invited to listen to the call by dialing 877-561-2748 and conference ID 6941139. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/ghaqi5ja. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 6941139 by February 12, 2021.About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. (NASDAQ: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: 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).CONTACT: Randall M. Chesler, CEO (406) 751-4722 Ron J. Copher, CFO (406) 751-7706 Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition(Dollars in thousands, except per share data) Dec 31,
2020Sep 30,
2020Dec 31,
2019Assets Cash on hand and in banks $ 227,108 249,245 198,639 Federal funds sold — 590 — Interest bearing cash deposits 406,034 520,044 132,322 Cash and cash equivalents 633,142 769,879 330,961 Debt securities, available-for-sale 5,337,814 4,125,548 2,575,252 Debt securities, held-to-maturity 189,836 193,509 224,611 Total debt securities 5,527,650 4,319,057 2,799,863 Loans held for sale, at fair value 166,572 147,937 69,194 Loans receivable 11,122,696 11,618,731 9,512,810 Allowance for credit losses (158,243 ) (164,552 ) (124,490 ) Loans receivable, net 10,964,453 11,454,179 9,388,320 Premises and equipment, net 325,335 326,925 310,309 Other real estate owned 1,744 5,361 5,142 Accrued interest receivable 75,497 91,393 56,047 Deferred tax asset — — 2,037 Core deposit intangible, net 55,509 58,121 63,286 Goodwill 514,013 514,013 456,418 Non-marketable equity securities 10,023 10,366 11,623 Bank-owned life insurance 123,763 123,095 109,428 Other assets 106,505 105,741 81,371 Total assets $ 18,504,206 17,926,067 13,683,999 Liabilities Non-interest bearing deposits $ 5,454,539 5,479,311 3,696,627 Interest bearing deposits 9,342,990 8,820,577 7,079,830 Securities sold under agreements to repurchase 1,004,583 965,668 569,824 FHLB advances — 7,318 38,611 Other borrowed funds 33,068 32,967 28,820 Subordinated debentures 139,959 139,918 139,914 Accrued interest payable 3,305 3,951 4,686 Deferred tax liability 23,860 17,227 — Other liabilities 194,861 204,041 164,954 Total liabilities 16,197,165 15,670,978 11,723,266 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, 117,187,500 shares authorized 954 954 923 Paid-in capital 1,495,053 1,493,928 1,378,534 Retained earnings - substantially restricted 667,944 629,109 541,050 Accumulated other comprehensive income 143,090 131,098 40,226 Total stockholders’ equity 2,307,041 2,255,089 1,960,733 Total liabilities and stockholders’ equity $ 18,504,206 17,926,067 13,683,999 Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of OperationsThree Months ended Year ended (Dollars in thousands, except per share data) Dec 31,
2020Sep 30,
2020Dec 31,
2019Dec 31,
2020Dec 31,
2019Interest Income Debt securities $ 27,388 25,381 20,904 99,616 85,504 Residential real estate loans 11,176 11,592 12,554 46,392 46,899 Commercial loans 121,956 109,514 100,301 436,497 369,107 Consumer and other loans 10,788 11,000 11,522 44,559 44,667 Total interest income 171,308 157,487 145,281 627,064 546,177 Interest Expense Deposits 3,500 3,952 6,101 17,620 23,280 Securities sold under agreements to repurchase 818 886 1,007 3,601 3,694 Federal Home Loan Bank advances 49 70 86 733 9,023 Other borrowed funds 173 173 92 646 215 Subordinated debentures 1,010 1,003 1,547 4,715 6,561 Total interest expense 5,550 6,084 8,833 27,315 42,773 Net Interest Income 165,758 151,403 136,448 599,749 503,404 Provision for credit losses (1,535 ) 5,186 — 39,765 57 Net interest income after provision for credit losses 167,293 146,217 136,448 559,984 503,347 Non-Interest Income Service charges and other fees 13,713 13,404 14,756 52,503 67,934 Miscellaneous loan fees and charges 2,293 2,084 1,379 7,344 5,313 Gain on sale of loans 26,214 35,516 10,135 99,450 34,064 Gain on sale of debt securities 124 24 257 1,139 14,415 Other income 2,360 2,639 1,890 12,431 9,048 Total non-interest income 44,704 53,667 28,417 172,867 130,774 Non-Interest Expense Compensation and employee benefits 70,540 64,866 55,543 253,047 222,753 Occupancy and equipment 9,728 9,369 9,149 37,673 34,497 Advertising and promotions 2,797 2,779 2,747 10,201 10,621 Data processing 5,211 5,597 4,972 21,132 17,392 Other real estate owned 550 186 609 923 1,105 Regulatory assessments and insurance 1,034 1,495 45 4,656 3,771 Loss on termination of hedging activities — — — — 13,528 Core deposit intangibles amortization 2,612 2,612 2,566 10,370 8,485 Other expenses 18,715 16,469 19,621 66,809 62,775 Total non-interest expense 111,187 103,373 95,252 404,811 374,927 Income Before Income Taxes 100,810 96,511 69,613 328,040 259,194 Federal and state income tax expense 18,950 18,754 12,203 61,640 48,650 Net Income $ 81,860 77,757 57,410 266,400 210,544 Glacier Bancorp, Inc.
Average Balance SheetsThree Months ended December 31, 2020 September 30, 2020 (Dollars in thousands) Average
BalanceInterest &
DividendsAverage
Yield/
RateAverage
BalanceInterest &
DividendsAverage
Yield/
RateAssets Residential real estate loans $ 984,942 $ 11,176 4.54 % $ 1,010,503 $ 11,592 4.59 % Commercial loans 1 9,535,228 123,327 5.15 % 9,636,631 110,847 4.58 % Consumer and other loans 951,379 10,788 4.51 % 957,284 11,000 4.57 % Total loans 2 11,471,549 145,291 5.04 % 11,604,418 133,439 4.57 % Tax-exempt investment securities 2 1,511,725 14,659 3.88 % 1,379,577 13,885 4.03 % Taxable investment securities 4 3,838,896 15,957 1.66 % 2,809,545 14,568 2.07 % Total earning assets 16,822,170 175,907 4.16 % 15,793,540 161,892 4.08 % Goodwill and intangibles 570,771 572,759 Non-earning assets 853,518 794,165 Total assets $ 18,246,459 $ 17,160,464 Liabilities Non-interest bearing deposits $ 5,498,744 $ — — % $ 5,171,984 $ — — % NOW and DDA accounts 3,460,923 607 0.07 % 3,218,536 642 0.08 % Savings accounts 1,935,476 162 0.03 % 1,804,438 166 0.04 % Money market deposit accounts 2,635,653 1,052 0.16 % 2,453,659 1,161 0.19 % Certificate accounts 984,100 1,629 0.66 % 981,385 1,936 0.78 % Total core deposits 14,514,896 3,450 0.09 % 13,630,002 3,905 0.11 % Wholesale deposits 5 100,329 50 0.20 % 86,852 47 0.22 % FHLB advances 6,540 49 2.93 % 21,273 70 1.30 % Repurchase agreements and other borrowed funds 1,142,199 2,001 0.70 % 1,049,002 2,062 0.78 % Total funding liabilities 15,763,964 5,550 0.14 % 14,787,129 6,084 0.16 % Other liabilities 199,771 120,294 Total liabilities 15,963,735 14,907,423 Stockholders’ Equity Common stock 954 954 Paid-in capital 1,494,422 1,493,353 Retained earnings 657,906 622,099 Accumulated other comprehensive income 129,442 136,635 Total stockholders’ equity 2,282,724 2,253,041 Total liabilities and stockholders’ equity $ 18,246,459 $ 17,160,464 Net interest income (tax-equivalent) $ 170,357 $ 155,808 Net interest spread (tax-equivalent) 4.02 % 3.92 % Net interest margin (tax-equivalent) 4.03 % 3.92 % ______________________________
1 Includes tax effect of $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2020 and September 30, 2020, 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 $3.0 million and $2.8 million on tax-exempt debt securities income for the three months ended December 31, 2020 and September 30, 2020, respectively.
4 Includes tax effect of $266 thousand and $266 thousand on federal income tax credits for the three months ended December 31, 2020 and September 30, 2020, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.Glacier Bancorp, Inc.
Average Balance Sheets (continued)Three Months ended December 31, 2020 December 31, 2019 (Dollars in thousands) Average
BalanceInterest &
DividendsAverage
Yield/
RateAverage
BalanceInterest &
DividendsAverage
Yield/
RateAssets Residential real estate loans $ 984,942 $ 11,176 4.54 % $ 1,010,174 $ 12,554 4.97 % Commercial loans 1 9,535,228 123,327 5.15 % 7,617,702 101,619 5.29 % Consumer and other loans 951,379 10,788 4.51 % 911,942 11,522 5.01 % Total loans 2 11,471,549 145,291 5.04 % 9,539,818 125,695 5.23 % Tax-exempt debt securities 3 1,511,725 14,659 3.88 % 853,524 8,983 4.21 % Taxable debt securities 4 3,838,896 15,957 1.66 % 2,064,755 14,033 2.72 % Total earning assets 16,822,170 175,907 4.16 % 12,458,097 148,711 4.74 % Goodwill and intangibles 570,771 521,405 Non-earning assets 853,518 667,505 Total assets $ 18,246,459 $ 13,647,007 Liabilities Non-interest bearing deposits $ 5,498,744 $ — — % $ 3,741,622 $ — — % NOW and DDA accounts 3,460,923 607 0.07 % 2,596,029 1,159 0.18 % Savings accounts 1,935,476 162 0.03 % 1,486,387 265 0.07 % Money market deposit accounts 2,635,653 1,052 0.16 % 1,947,102 1,710 0.35 % Certificate accounts 984,100 1,629 0.66 % 958,133 2,609 1.08 % Total core deposits 14,514,896 3,450 0.09 % 10,729,273 5,743 0.21 % Wholesale deposits 5 100,329 50 0.20 % 72,539 358 1.96 % FHLB advances 6,540 49 2.93 % 15,601 86 2.18 % Repurchase agreements and other borrowed funds 1,142,199 2,001 0.70 % 703,391 2,646 1.49 % Total funding liabilities 15,763,964 5,550 0.14 % 11,520,804 8,833 0.30 % Other liabilities 199,771 164,285 Total liabilities 15,963,735 11,685,089 Stockholders’ Equity Common stock 954 922 Paid-in capital 1,494,422 1,377,013 Retained earnings 657,906 538,620 Accumulated other comprehensive income 129,442 45,363 Total stockholders’ equity 2,282,724 1,961,918 Total liabilities and stockholders’ equity $ 18,246,459 $ 13,647,007 Net interest income (tax-equivalent) $ 170,357 $ 139,878 Net interest spread (tax-equivalent) 4.02 % 4.44 % Net interest margin (tax-equivalent) 4.03 % 4.45 % ______________________________
1 Includes tax effect of $1.4 million and $1.3 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2020 and 2019, 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 $3.0 million and $1.8 million on tax-exempt debt securities income for the three months ended December 31, 2020 and 2019, respectively.
4 Includes tax effect of $266 thousand and $276 thousand on federal income tax credits for the three months ended December 31, 2020 and 2019, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.Glacier Bancorp, Inc.
Average Balance Sheets (continued)Year ended December 31, 2020 December 31, 2019 (Dollars in thousands) Average
BalanceInterest &
DividendsAverage Yield/
RateAverage
BalanceInterest &
DividendsAverage Yield/
RateAssets Residential real estate loans $ 1,006,001 $ 46,392 4.61 % $ 965,553 $ 46,899 4.86 % Commercial loans 1 9,057,210 441,762 4.88 % 7,084,753 373,888 5.28 % Consumer and other loans 948,379 44,559 4.70 % 881,726 44,667 5.07 % Total loans 2 11,011,590 532,713 4.84 % 8,932,032 465,454 5.21 % Tax-exempt debt securities 3 1,306,640 52,201 4.00 % 917,454 38,195 4.16 % Taxable debt securities 4 2,746,855 59,027 2.15 % 1,935,215 56,258 2.91 % Total earning assets 15,065,085 643,941 4.27 % 11,784,701 559,907 4.75 % Goodwill and intangibles 564,603 410,561 Non-earning assets 784,075 611,788 Total assets $ 16,413,763 $ 12,807,050 Liabilities Non-interest bearing deposits $ 4,772,386 $ — — % $ 3,323,641 $ — — % NOW and DDA accounts 3,094,675 2,849 0.09 % 2,447,037 4,196 0.17 % Savings accounts 1,737,272 742 0.04 % 1,420,682 1,022 0.07 % Money market deposit accounts 2,356,508 5,077 0.22 % 1,787,149 5,385 0.30 % Certificate accounts 986,126 8,568 0.87 % 923,840 9,257 1.00 % Total core deposits 12,946,967 17,236 0.13 % 9,902,349 19,860 0.20 % Wholesale deposits 5 78,283 384 0.49 % 137,442 3,420 2.49 % FHLB advances 79,277 733 0.91 % 265,712 9,023 3.35 % Repurchase agreements and other borrowed funds 955,205 8,962 0.94 % 625,242 10,470 1.67 % Total funding liabilities 14,059,732 27,315 0.19 % 10,930,745 42,773 0.39 % Other liabilities 162,079 123,002 Total liabilities 14,221,811 11,053,747 Stockholders’ Equity Common stock 949 883 Paid-in capital 1,474,359 1,208,772 Retained earnings 604,796 510,601 Accumulated other comprehensive income 111,848 33,047 Total stockholders’ equity 2,191,952 1,753,303 Total liabilities and stockholders’ equity $ 16,413,763 $ 12,807,050 Net interest income (tax-equivalent) $ 616,626 $ 517,134 Net interest spread (tax-equivalent) 4.08 % 4.36 % Net interest margin (tax-equivalent) 4.09 % 4.39 % ______________________________
1 Includes tax effect of $5.3 million and $4.8 million on tax-exempt municipal loan and lease income for the year ended December 31, 2020 and 2019, 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 $10.5 million and $7.8 million on tax-exempt debt securities income for the year ended December 31, 2020 and 2019, respectively.
4 Includes tax effect of $1.1 million and $1.1 million on federal income tax credits for the year ended December 31, 2020 and 2019, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.Glacier Bancorp, Inc.
Loan Portfolio by Regulatory ClassificationLoans Receivable, by Loan Type % Change from (Dollars in thousands) Dec 31,
2020Sep 30,
2020Dec 31,
2019Sep 30,
2020Dec 31,
2019Custom and owner occupied construction $ 157,529 $ 166,195 $ 143,479 (5 )% 10 % Pre-sold and spec construction 148,845 157,242 180,539 (5 )% (18 )% Total residential construction 306,374 323,437 324,018 (5 )% (5 )% Land development 102,930 96,814 101,592 6 % 1 % Consumer land or lots 123,747 122,019 125,759 1 % (2 )% Unimproved land 59,500 64,770 62,563 (8 )% (5 )% Developed lots for operative builders 30,449 30,871 17,390 (1 )% 75 % Commercial lots 60,499 62,445 46,408 (3 )% 30 % Other construction 555,375 537,105 478,368 3 % 16 % Total land, lot, and other construction 932,500 914,024 832,080 2 % 12 % Owner occupied 1,945,686 1,889,512 1,667,526 3 % 17 % Non-owner occupied 2,290,512 2,259,062 2,017,375 1 % 14 % Total commercial real estate 4,236,198 4,148,574 3,684,901 2 % 15 % Commercial and industrial 1,850,197 2,308,710 991,580 (20 )% 87 % Agriculture 721,490 747,145 701,363 (3 )% 3 % 1st lien 1,228,867 1,256,111 1,186,889 (2 )% 4 % Junior lien 41,641 43,355 53,571 (4 )% (22 )% Total 1-4 family 1,270,508 1,299,466 1,240,460 (2 )% 2 % Multifamily residential 391,895 359,030 342,498 9 % 14 % Home equity lines of credit 657,626 651,546 617,900 1 % 6 % Other consumer 190,186 191,761 174,643 (1 )% 9 % Total consumer 847,812 843,307 792,543 1 % 7 % States and political subdivisions 575,647 617,624 533,023 (7 )% 8 % Other 156,647 205,351 139,538 (24 )% 12 % Total loans receivable, including loans held for sale 11,289,268 11,766,668 9,582,004 (4 )% 18 % Less loans held for sale 1 (166,572 ) (147,937 ) (69,194 ) 13 % 141 % Total loans receivable $ 11,122,696 $ 11,618,731 $ 9,512,810 (4 )% 17 % ______________________________
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(Dollars in thousands) Dec 31,
2020Sep 30,
2020Dec 31,
2019Dec 31,
2020Dec 31,
2020Dec 31,
2020Custom and owner occupied construction $ 247 249 185 247 — — Pre-sold and spec construction — — 743 — — — Total residential construction 247 249 928 247 — — Land development 342 450 852 93 — 249 Consumer land or lots 201 223 330 74 — 127 Unimproved land 294 417 1,181 214 34 46 Commercial lots 368 682 529 — — 368 Total land, lot and other construction 1,205 1,772 2,892 381 34 790 Owner occupied 6,725 9,077 4,608 6,605 — 120 Non-owner occupied 4,796 4,879 8,229 4,607 189 — Total commercial real estate 11,521 13,956 12,837 11,212 189 120 Commercial and industrial 6,689 8,571 5,297 5,982 152 555 Agriculture 6,313 8,972 2,288 6,164 149 — 1st lien 5,353 6,559 8,671 4,419 934 — Junior lien 301 986 569 301 — — Total 1-4 family 5,654 7,545 9,240 4,720 934 — Multifamily residential — — 201 — — — Home equity lines of credit 2,939 2,903 2,618 2,531 135 273 Other consumer 572 407 837 466 100 6 Total consumer 3,511 3,310 3,455 2,997 235 279 Other 293 288 299 261 32 — Total $ 35,433 44,663 37,437 31,964 1,725 1,744 Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)Accruing 30-89 Days Delinquent Loans, by Loan Type % Change from (Dollars in thousands) Dec 31,
2020Sep 30,
2020Dec 31,
2019Sep 30,
2020Dec 31,
2019Custom and owner occupied construction $ 788 $ 448 $ 637 76 % 24 % Pre-sold and spec construction — — 148 n/m (100 )% Total residential construction 788 448 785 76 % — % Land development 202 — — n/m n/m Consumer land or lots 71 220 672 (68 )% (89 )% Unimproved land 357 381 558 (6 )% (36 )% Developed lots for operative builders 306 — 2 n/m 15,200 % Total land, lot and other construction 936 601 1,232 56 % (24 )% Owner occupied 3,432 3,163 3,052 9 % 12 % Non-owner occupied 149 1,157 1,834 (87 )% (92 )% Total commercial real estate 3,581 4,320 4,886 (17 )% (27 )% Commercial and industrial 1,814 2,354 2,036 (23 )% (11 )% Agriculture 1,553 2,795 4,298 (44 )% (64 )% 1st lien 6,677 2,589 4,711 158 % 42 % Junior lien 55 738 624 (93 )% (91 )% Total 1-4 family 6,732 3,327 5,335 102 % 26 % Home equity lines of credit 2,840 2,200 2,352 29 % 21 % Other consumer 1,054 789 1,187 34 % (11 )% Total consumer 3,894 2,989 3,539 30 % 10 % States and political subdivisions 2,358 — — n/m n/m Other 1,065 797 1,081 34 % (1 )% Total $ 22,721 $ 17,631 $ 23,192 29 % (2 )% ______________________________
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) Dec 31,
2020Sep 30,
2020Dec 31,
2019Dec 31,
2020Dec 31,
2020Custom and owner occupied construction $ (9 ) (9 ) 98 — 9 Pre-sold and spec construction (24 ) (19 ) (18 ) — 24 Total residential construction (33 ) (28 ) 80 — 33 Land development (106 ) (63 ) (30 ) — 106 Consumer land or lots (221 ) (217 ) (138 ) 7 228 Unimproved land (489 ) (489 ) (311 ) — 489 Developed lots for operative builders — — (18 ) — — Commercial lots (55 ) (5 ) (6 ) 22 77 Other construction — — (142 ) — — Total land, lot and other construction (871 ) (774 ) (645 ) 29 900 Owner occupied (168 ) (82 ) (479 ) 57 225 Non-owner occupied 3,030 246 2,015 3,086 56 Total commercial real estate 2,862 164 1,536 3,143 281 Commercial and industrial 1,533 740 1,472 2,278 745 Agriculture 337 309 21 345 8 1st lien 69 (27 ) (12 ) 127 58 Junior lien (211 ) (169 ) (303 ) 27 238 Total 1-4 family (142 ) (196 ) (315 ) 154 296 Multifamily residential (244 ) (244 ) — — 244 Home equity lines of credit 101 79 19 350 249 Other consumer 307 233 603 604 297 Total consumer 408 312 622 954 546 Other 3,803 2,589 4,035 6,905 3,102 Total $ 7,653 2,872 6,806 13,808 6,155 Visit our website at www.glacierbancorp.com