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Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended June 30, 2022

2nd Quarter 2022 Highlights:

  • Net income was $76.4 million for the current quarter, an increase of $8.6 million, or 13 percent, from the prior quarter net income of $67.8 million.
  • The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, grew $714 million, or 21 percent annualized, in the current quarter.
  • Net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.23 percent compared to 3.20 percent in the prior quarter. The core net interest margin for the current quarter of 3.16 percent, increased 9 basis points from 3.07 percent in the prior quarter.
  • Net interest income, on a tax-equivalent basis, was $199 million in the current quarter which increased $8.6 million, or 5 percent, over the prior quarter net interest income of $190 million.
  • Core deposits increased $85.5 million, or 2 percent annualized, during the current quarter.
  • Non-interest bearing deposits increased $71.3 million, or 4 percent, annualized during the current quarter.
  • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 149 consecutive quarterly dividends and has increased the dividend 49 times.

First Half 2022 Highlights:

  • The loan portfolio, excluding the PPP loans, organically grew $1.121 billion, or 17 percent annualized, in the first half of 2022.
  • Net interest income, on a tax-equivalent basis, was $389 million in the first half of 2022. Excluding the PPP loans, net interest income was $384 million which increased $86.8 million, or 29 percent, over the prior year first half net interest income of $298 million.
  • Core deposits increased $468 million, or 4 percent annualized, during the first six months of 2022.
  • Dividends declared in the first half of 2022 of $0.66 per share, an increase of $0.03 per share, or 5 percent, over the prior year dividends of $0.63.

Financial Summary  

    At or for the Three Months ended   At or for the Six Months ended
(Dollars in thousands, except per share and market data)   Jun 30,

2022
  Mar 31,

2022
  Jun 30,

2021
  Jun 30,

2022
  Jun 30,

2021
Operating results                    
Net income   $ 76,392     67,795     77,627     144,187     158,429  
Basic earnings per share   $ 0.69     0.61     0.81     1.30     1.66  
Diluted earnings per share   $ 0.69     0.61     0.81     1.30     1.66  
Dividends declared per share   $ 0.33     0.33     0.32     0.66     0.63  
Market value per share                    
Closing   $ 47.42     50.28     55.08     47.42     55.08  
High   $ 51.40     60.69     63.05     60.69     67.35  
Low   $ 44.43     49.61     52.99     44.43     44.55  
Selected ratios and other data                    
Number of common stock shares outstanding     110,766,287     110,763,316     95,507,234     110,766,287     95,507,234  
Average outstanding shares – basic     110,765,379     110,724,655     95,505,877     110,745,017     95,485,839  
Average outstanding shares – diluted     110,794,982     110,800,001     95,580,904     110,799,368     95,565,591  
Return on average assets (annualized)     1.16 %   1.06 %   1.55 %   1.11 %   1.64 %
Return on average equity (annualized)     10.55 %   8.97 %   13.25 %   9.76 %   13.68 %
Efficiency ratio     55.74 %   57.11 %   49.92 %   56.42 %   48.31 %
Dividend payout     47.83 %   54.10 %   39.51 %   50.77 %   37.95 %
Loan to deposit ratio     66.26 %   63.52 %   67.64 %   66.26 %   67.64 %
Number of full time equivalent employees     3,439     3,439     2,987     3,439     2,987  
Number of locations     224     223     194     224     194  
Number of ATMs     274     273     250     274     250  
                                 

KALISPELL, Mont., July 21, 2022 (GLOBE NEWSWIRE) — Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $76.4 million for the current quarter, a decrease of $1.2 million, or 2 percent, from the $77.6 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.69 per share, a decrease of 15 percent from the prior year second quarter diluted earnings per share of $0.81. The $1.2 million decrease in second quarter earnings over the prior year second quarter was driven primarily by a $11.1 million decrease in gain on the sale of residential loans, a $10.3 million decrease in the PPP related income, an increase of $4.1 million of provision for credit loss, and a $976 thousand increase in acquisition-related expenses. For the quarter, the Company experienced a $38.0 million increase, or 24 percent, in net interest income and a $29.4 million increase, or 29 percent, in non-interest expense over the prior year second quarter which was driven by the acquisition of Altabancorp and its Altabank subsidiary (“Alta”). “We were very pleased to see the high quality loan and deposit growth we achieved this quarter,” said Randy Chesler, President and Chief Executive Officer. “We remain prepared to manage through economic headwinds if the economy experiences a recession and are confident in the long term resiliency of our markets and our core business.”

Net income for the six month ended June 30, 2022 was $144.2 million, a decrease of $14.2 million, or 9 percent, from the $158.4 million net income for the first six months in the prior year. Diluted earnings per share for the first half of 2022 was $1.30 per share, a decrease of 22 percent from the prior year first half earnings per share of $1.66. The $14.2 million decrease in net income over the prior year first half was driven primarily by a $25.7 million decrease in the PPP related income, a $23.7 million decrease in gain on the sale of residential loans, an increase of $11.1 million of provision for credit loss, and a $7.1 million increase in acquisition-related expenses.

Asset Summary

                    $ Change from
(Dollars in thousands)   Jun 30,

2022
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
Cash and cash equivalents   $ 415,406     436,805     437,686     921,207     (21,399 )   (22,280 )   (505,801 )
Debt securities, available-for-sale     6,209,199     6,535,763     9,170,849     6,147,143     (326,564 )   (2,961,650 )   62,056  
Debt securities, held-to-maturity     3,788,486     3,576,941     1,199,164     1,024,730     211,545     2,589,322     2,763,756  
Total debt securities     9,997,685     10,112,704     10,370,013     7,171,873     (115,019 )   (372,328 )   2,825,812  
Loans receivable                            
Residential real estate     1,261,119     1,125,648     1,051,883     734,838     135,471     209,236     526,281  
Commercial real estate     9,310,070     8,865,585     8,630,831     6,584,322     444,485     679,239     2,725,748  
Other commercial     2,685,392     2,661,048     2,664,190     2,932,419     24,344     21,202     (247,027 )
Home equity     773,582     715,963     736,288     648,800     57,619     37,294     124,782  
Other consumer     369,592     362,775     348,839     337,669     6,817     20,753     31,923  
Loans receivable     14,399,755     13,731,019     13,432,031     11,238,048     668,736     967,724     3,161,707  
Allowance for credit losses     (172,963 )   (176,159 )   (172,665 )   (151,448 )   3,196     (298 )   (21,515 )
Loans receivable, net     14,226,792     13,554,860     13,259,366     11,086,600     671,932     967,426     3,140,192  
Other assets     2,050,122     1,995,955     1,873,580     1,308,353     54,167     176,542     741,769  
Total assets   $ 26,690,005     26,100,324     25,940,645     20,488,033     589,681     749,360     6,201,972  
 

Total debt securities of $9.998 billion at June 30, 2022 decreased $115 million, or 1 percent, during the current quarter and increased $2.826 billion, or 39 percent, from the prior year second quarter. Debt securities represented 37 percent of total assets at June 30, 2022 compared to 40 percent at December 31, 2021 and 35 percent of total assets at June 30, 2021.

The loan portfolio of $14.400 billion at June 30, 2022 increased $669 million, or 5 percent, in the current quarter and increased $3.162 billion, or 28 percent, from the prior year second quarter. Excluding the PPP loans, the loan portfolio increased $714 million, or 21 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $444 million, or 20 percent annualized. Excluding the PPP loans and loans from the acquisition of Alta, the loan portfolio increased $1.950 billion, or 19 percent, from the prior year second quarter with the largest dollar increase in commercial real estate loans which increased $1.323 billion, or 20 percent.

The Company received $44.5 million in PPP loan forgiveness during the current quarter. As of June 30, 2022, the Company had $15.7 million of PPP loans remaining. In the current quarter, the Company recognized $1.6 million of interest income (including deferred fees and costs) from the PPP loans. The income recognized in the current quarter included $1.4 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of the PPP loans at June 30, 2022 was $416 thousand, 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.

Credit Quality Summary

    At or for the Six

Months ended
  At or for the

Three Months

ended
  At or for the

Year ended
  At or for the Six

Months ended
(Dollars in thousands)   Jun 30,

2022
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
Allowance for credit losses                
Balance at beginning of period   $ 172,665     172,665     158,243     158,243  
Acquisitions             371      
Provision for credit losses     2,991     4,344     16,380     (5,234 )
Charge-offs     (7,040 )   (2,695 )   (11,594 )   (5,946 )
Recoveries     4,347     1,845     9,265     4,385  
Balance at end of period   $ 172,963     176,159     172,665     151,448  
Provision for credit losses                
Loan portfolio   $ 2,991     4,344     16,380     (5,234 )
Unfunded loan commitments     2,507     2,687     6,696     (371 )
Total provision for credit losses   $ 5,498     7,031     23,076     (5,605 )
Other real estate owned   $             705  
Other foreclosed assets     379     43     18     66  
Accruing loans 90 days or more past due     5,064     4,510     17,141     4,220  
Non-accrual loans     38,523     57,923     50,532     48,050  
Total non-performing assets   $ 43,966     62,476     67,691     53,041  
Non-performing assets as a percentage of subsidiary assets     0.16 %   0.24 %   0.26 %   0.26 %
Allowance for credit losses as a percentage of non-performing loans     393 %   282 %   255 %   290 %
Allowance for credit losses as a percentage of total loans     1.20 %   1.28 %   1.29 %   1.35 %
Net charge-offs as a percentage of total loans     0.02 %   0.01 %   0.02 %   0.01 %
Accruing loans 30-89 days past due   $ 16,588     16,080     50,566     12,076  
Accruing troubled debt restructurings   $ 33,859     33,702     34,591     37,667  
Non-accrual troubled debt restructurings   $ 2,427     2,501     2,627     3,179  
U.S. government guarantees included in non-performing assets   $ 5,888     5,068     4,028     4,186  
                           

Non-performing assets of $44.0 million at June 30, 2022 decreased $18.5 million, or 30 percent, over the prior quarter and decreased $9.1 million, or 17 percent, over prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2022 was 0.16 percent compared to 0.24 percent in the prior quarter and 0.26 percent in the prior year second quarter.

Early stage delinquencies (accruing loans 30-89 days past due) of $16.6 million at June 30, 2022 increased $508 thousand from the prior quarter and increased $4.5 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2022 was 12 basis points, which compared to 12 basis points in the prior quarter and 11 basis points from prior year second quarter.

The current quarter credit loss benefit of $1.5 million included $1.4 million of credit loss benefit from loans and $179 thousand of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at June 30, 2022 was 1.20 percent which was an 8 basis point decrease compared to the prior quarter and a 15 basis points decrease from the prior year second quarter.

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
Second quarter 2022   $ (1,353 )   $ 1,843     1.20 %   0.12 %   0.16 %
First quarter 2022     4,344       850     1.28 %   0.12 %   0.24 %
Fourth quarter 2021     19,301       616     1.29 %   0.38 %   0.26 %
Third quarter 2021     2,313       152     1.36 %   0.23 %   0.24 %
Second quarter 2021     (5,723 )     (725 )   1.35 %   0.11 %   0.26 %
First quarter 2021     489       2,286     1.39 %   0.40 %   0.19 %
Fourth quarter 2020     (1,528 )     4,781     1.42 %   0.20 %   0.19 %
Third quarter 2020     2,869       826     1.42 %   0.15 %   0.25 %
                                   

The current quarter provision for credit loss benefit for loans was $1.4 million which was a decrease of $5.7 million from the prior quarter which was driven by the continued improvement in the credit quality and the Company’s increased comfort with the economic forecasts. Current quarter provision for credit loss benefit for loans decreased $4.3 million from the prior year second quarter provision for credit loss benefit of $5.7 million.

Net charge-offs for the current quarter were $1.8 million compared to $850 thousand for the prior quarter and recoveries of $725 thousand from the same quarter last year. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on regulatory classification is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.

Liability Summary

                    $ Change from
(Dollars in thousands)   Jun 30,

2022
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
Deposits                            
Non-interest bearing deposits   $ 8,061,304   7,990,003   7,779,288   6,307,794   71,301     282,016     1,753,510  
NOW and DDA accounts     5,432,333   5,376,881   5,301,832   4,151,264   55,452     130,501     1,281,069  
Savings accounts     3,296,561   3,287,521   3,180,046   2,346,129   9,040     116,515     950,432  
Money market deposit accounts     4,021,102   4,044,655   4,014,128   2,990,021   (23,553 )   6,974     1,031,081  
Certificate accounts     968,382   995,147   1,036,077   939,563   (26,765 )   (67,695 )   28,819  
Core deposits, total     21,779,682   21,694,207   21,311,371   16,734,771   85,475     468,311     5,044,911  
Wholesale deposits     4,001   3,688   25,878   26,121   313     (21,877 )   (22,120 )
Deposits, total     21,783,683   21,697,895   21,337,249   16,760,892   85,788     446,434     5,022,791  
Repurchase agreements     968,197   958,479   1,020,794   995,201   9,718     (52,597 )   (27,004 )
Federal Home Loan Bank advances     580,000   80,000       500,000     580,000     580,000  
Other borrowed funds     66,200   57,258   44,094   33,556   8,942     22,106     32,644  
Subordinated debentures     132,701   132,661   132,620   132,540   40     81     161  
Other liabilities     262,985   239,838   228,266   211,889   23,147     34,719     51,096  
Total liabilities   $ 23,793,766   23,166,131   22,763,023   18,134,078   627,635     1,030,743     5,659,688  
 

Core deposits of $21.780 billion increased $85.5 million, or 2 percent annualized, during the current quarter and non-interest bearing deposits increased $71.3 million, or 4 percent annualized, during the current quarter. Excluding the Alta acquisition, core deposits increased $1.771 billion, or 11 percent, from the prior year second quarter. During 2020 and 2021, the Company experienced unprecedented increases in core deposits as a result of increased customer savings and federal stimulus. Non-interest bearing deposits were 37 percent of total core deposits at June 30, 2022 and December 31, 2021 compared to 38 percent at June 30, 2021.

Federal Home Loan Bank (“FHLB”) advances increased $500 million during the current quarter to support the liquidity needs driven by the increase in the loan portfolio. The FHLB advances will continue to fluctuate to supplement the liquidity needs during the year.

Stockholders’ Equity Summary

                    $ Change from
(Dollars in thousands, except per share data)   Jun 30,

2022
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
Common equity   $ 3,223,451     3,182,002     3,150,263     2,263,513     41,449     73,188     959,938  
Accumulated other comprehensive (loss) income     (327,212 )   (247,809 )   27,359     90,442     (79,403 )   (354,571 )   (417,654 )
Total stockholders’ equity     2,896,239     2,934,193     3,177,622     2,353,955     (37,954 )   (281,383 )   542,284  
Goodwill and core deposit intangible, net     (1,032,323 )   (1,034,987 )   (1,037,652 )   (564,546 )   2,664     5,329     (467,777 )
Tangible stockholders’ equity   $ 1,863,916     1,899,206     2,139,970     1,789,409     (35,290 )   (276,054 )   74,507  
Stockholders’ equity to total assets     10.85 %   11.24 %   12.25 %   11.49 %            
Tangible stockholders’ equity to total tangible assets     7.26 %   7.58 %   8.59 %   8.98 %            
Book value per common share   $ 26.15     26.49     28.71     24.65     (0.34 )   (2.56 )   1.50  
Tangible book value per common share   $ 16.83     17.15     19.33     18.74     (0.32 )   (2.50 )   (1.91 )
                                             

Tangible stockholders’ equity of $1.864 billion at June 30, 2022 decreased $35.3 million, or 2 percent, from the prior quarter which was primarily driven by an increase in the unrealized loss on the available-for-sale (“AFS”) debt securities during the current quarter which was driven by an increase in interest rates. Tangible stockholders’ equity at June 30, 2022 increased $74.5 million, or 4 percent, from the prior year second quarter which largely was the result of $840 million of Company common stock issued for the acquisition of Alta, despite the increase in goodwill and core deposit intangibles associated with the Alta acquisition and an increase in the unrealized loss on the AFS debt securities. Tangible book value per common share of $16.83 at the current quarter end decreased $0.32 per share, or 2 percent, from the prior quarter and decreased $1.91 per share, or 10 percent, from the prior year second quarter primarily as a result of the increase in the unrealized loss on AFS debt securities.

Cash Dividends

On June 29, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable July 21, 2022 to shareholders of record on July 12, 2022. The dividend was the Company’s 149th consecutive dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended June 30, 2022 

Compared to March 31, 2022, and June 30, 2021

Income Summary

    Three Months ended   $ Change from
(Dollars in thousands)   Jun 30,

2022
  Mar 31,

2022
  Jun 30,

2021
  Mar 31,

2022
  Jun 30,

2021
Net interest income                    
Interest income   $ 199,637     190,516     159,956     9,121     39,681  
Interest expense     6,199     4,961     4,487     1,238     1,712  
     Total net interest income     193,438     185,555     155,469     7,883     37,969  
Non-interest income                    
Service charges and other fees     17,309     17,111     13,795     198     3,514  
Miscellaneous loan fees and charges     3,850     3,555     2,923     295     927  
Gain on sale of loans     4,996     9,015     16,106     (4,019 )   (11,110 )
(Loss) Gain on sale of investments     (260 )   446     (61 )   (706 )   (199 )
Other income     2,385     3,436     2,759     (1,051 )   (374 )
     Total non-interest income     28,280     33,563     35,522     (5,283 )   (7,242 )
     Total income     221,718     219,118     190,991     2,600     30,727  
Net interest margin (tax-equivalent)     3.23 %   3.20 %   3.44 %        
 

Net Interest Income

The current quarter net interest income of $193 million increased $7.9 million, or 4 percent, compared to the prior quarter and increased $38.0 million, or 24 percent, from the prior year second quarter. The current quarter interest income of $200 million increased $9.1 million, or 5 percent, over the prior quarter and was driven by the increase in the loan portfolio and an increase in investment yields, both of which more than offset the decrease of $1.8 million in interest income from the PPP loans. The current quarter interest income increased $39.7 million over the prior year second quarter primarily due to $28.7 million of interest income from Altabank division and organic loan growth, which more than offset the $8.8 million decrease in interest income from the PPP loans.

The current quarter interest expense of $6.2 million increased $1.2 million, or 25 percent, over the prior quarter and increased $1.7 million, or 38 percent, over the prior year second quarter primarily the result of an increase in borrowings to support the Company’s liquidity needs. Core deposit cost was 6 basis points in the current quarter compared to 7 basis points in the prior quarter and the prior year second quarter. The total cost of funding (including non-interest bearing deposits) was 11 basis points in the current quarter compared to 9 basis points in the prior quarter and 10 basis points in the prior year second quarter which was driven by the increased borrowings.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.23 percent compared to 3.20 percent in the prior quarter and 3.44 percent in the prior year second quarter. The core net interest margin, excluding 4 basis points of discount accretion, 1 basis point from non-accrual interest and 2 basis points increase from the PPP loans, was 3.16 percent compared to 3.07 in the prior quarter and 3.33 percent in the prior year second quarter. The core net interest margin increased 9 basis points in the current quarter as a result of increased core loan yields and investment yields. The core loan yield of 4.41 percent in the current quarter increased 7 basis points from the prior quarter core loan yield of 4.34 percent. “We are pleased with the growth in our net interest income in the current quarter. The Bank divisions remain focused on growing a low-cost core deposit base, especially non-interest bearing deposits, in a rising rate environment,” said Ron Copher, Chief Financial Officer.

Non-interest Income

Non-interest income for the current quarter totaled $28.3 million which was a decrease of $5.3 million, or 16 percent, over the prior quarter and a decrease of $7.2 million, or 20 percent, over the same quarter last year with both decreases primarily driven by the decrease in gain on sale of residential loans. Gain on the sale of residential loans of $5.0 million for the current quarter decreased $4.0 million, or 45 percent, compared to the prior quarter and decreased $11.1 million, or 69 percent, from the prior year second quarter. The current quarter mortgage activity was lower than prior periods as a result of the continued reduction in residential purchase and refinance activity as mortgage rates continued to rise.

Non-interest Expense Summary

    Three Months ended   $ Change from
(Dollars in thousands)   Jun 30,

2022
  Mar 31,

2022
  Jun 30,

2021
  Mar 31,

2022
  Jun 30,

2021
Compensation and employee benefits   $ 79,803   79,074   64,109   729     15,694  
Occupancy and equipment     10,766   10,964   9,208   (198 )   1,558  
Advertising and promotions     3,766   3,232   2,906   534     860  
Data processing     7,553   7,475   5,661   78     1,892  
Other real estate owned and foreclosed

assets
    6     48   6     (42 )
Regulatory assessments and insurance     3,085   3,055   1,702   30     1,383  
Core deposit intangibles amortization     2,665   2,664   2,488   1     177  
Other expenses     21,877   23,844   13,960   (1,967 )   7,917  
Total non-interest expense   $ 129,521   130,308   100,082   (787 )   29,439  
 

Total non-interest expense of $130 million for the current quarter decreased $787 thousand, or 60 basis points, over the prior quarter which was driven by a decrease in acquisition-related expenses during the current quarter. Acquisition-related expenses was $2.1 million in the current quarter compared to $6.2 million in the prior quarter and $1.1 million in the prior year second quarter.

Total non-interest expense increased $29.4 million, or 29 percent, over the prior year second quarter which was primarily driven by the acquisition of Alta. Excluding $18.3 million of non-interest expense from the Altabank division, $1.5 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $8.7 million, or 9 percent, from the prior year second quarter. The increase includes $5.2 million from compensation and employee benefits driven by the increased number of employees, annual salary increases and a $2.1 million increase in outside service expenses associated with technology infrastructure improvements.

Federal and State Income Tax Expense

Tax expense during the second quarter of 2022 was $17.3 million, an increase of $3.4 million, or 24 percent, compared to the prior quarter and a decrease of $1.6 million, or 8 percent, from the prior year second quarter. The effective tax rate in the current quarter was 18.5 percent compared to 17.1 percent in the prior quarter with the increase driven by higher taxable income. The effective tax rate in the current quarter of 18.5 percent compared to 19.6 percent in the prior year second quarter with the decrease in the current quarter attributable to lower taxable income.

Efficiency Ratio

The efficiency ratio was 55.74 percent in the current quarter compared to 57.11 percent in the prior quarter and 49.92 in the prior year second quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 54.84 percent in the current quarter compared to 54.33 percent in the prior quarter and 49.37 percent in the prior year second quarter. The increase in the efficiency ratio from the prior year second quarter was driven by the decrease in gain on the sale of residential loans, the decrease in income from the PPP loans and the increase in non-interest expense.

Operating Results for Six Months Ended June 30, 2022

Compared to June 30, 2021

Income Summary

    Six Months ended    
(Dollars in thousands)   Jun 30,

2022
  Jun 30,

2021
  $ Change   % Change
Net interest income                
Interest income   $ 390,153     $ 321,508     $ 68,645     21 %
Interest expense     11,160       9,227       1,933     21 %
     Total net interest income     378,993       312,281       66,712     21 %
Non-interest income                
Service charges and other fees     34,420       26,587       7,833     29 %
Miscellaneous loan fees and charges     7,405       5,701       1,704     30 %
Gain on sale of loans     14,011       37,730       (23,719 )   (63) %
Gain on sale of investments     186       223       (37 )   (17) %
Other income     5,821       5,402       419     8 %
     Total non-interest income     61,843       75,643       (13,800 )   (18) %
     Total Income   $ 440,836     $ 387,924     $ 52,912     14 %
Net interest margin (tax-equivalent)     3.21 %     3.58 %        
 

Net Interest Income

Net-interest income of $379 million for the first half of 2022 increased $66.7 million, or 21 percent, over the same period in 2021. Interest income of $390 million for the first six months of the current year increased $68.6 million, or 21 percent, from the prior year and was primarily attributable to $58.9 million of interest income from Alta division and organic growth. Interest expense of $11.2 million for the first half of 2022 increased $1.9 million, or 21 percent over the prior year. The total funding cost (including non-interest bearing deposits) for the first six months of 2022 was 10 basis points, which decreased 1 basis point compared to 11 basis points in first six months of 2021.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2022 was 3.21 percent, a 37 basis points decrease from the net interest margin of 3.58 percent for the same period in the prior year. The core net interest margin, excluding 6 basis points of discount accretion, 1 basis point of non-accrual interest and 3 basis points increase from the PPP loans, was 3.11 which was a 32 basis point decrease from the core margin of 3.43 percent in the prior year.

Non-interest Income

Non-interest income of $61.8 million for the first half of 2022 decreased $13.8 million, or 18 percent, over the same period last year and was primarily attributable to the $23.7 million, or 63 percent, decrease in gain on sale of residential loans. Service charges and other fees of $34.4 million for the first six months of 2022 increased $7.8 million, or 29 percent, from prior year as a result of additional fees from increased customer accounts, transaction activity and the acquisition of Alta. Miscellaneous loan fees and charges increased $1.7 million, or 30 percent, primarily driven by increases in credit card interchange fees due to increased activity.

Non-interest Expense Summary

    Six Months ended        
(Dollars in thousands)   Jun 30,

2022
  Jun 30,

2021
  $ Change   % Change
Compensation and employee benefits   $ 158,877   $ 126,577   $ 32,300     26 %
Occupancy and equipment     21,730     18,723     3,007     16 %
Advertising and promotions     6,998     5,277     1,721     33 %
Data processing     15,028     10,867     4,161     38 %
Other real estate owned and foreclosed assets     6     60     (54 )   (90) %
Regulatory assessments and insurance     6,140     3,581     2,559     71 %
Core deposit intangibles amortization     5,329     4,976     353     7 %
Other expenses     45,721     26,606     19,115     72 %
Total non-interest expense   $ 259,829   $ 196,667   $ 63,162     32 %
 

Total non-interest expense of $260 million for the first half of 2022 increased $63.2 million, or 32 percent, over the prior year first half. Excluding $41.6 million of non-interest expense from the Altabank division, $6.7 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $14.8 million, or 8 percent, from the prior year first half. Excluding the Alta division, compensation and employee benefits increased $13.5 million, or 11 percent, from prior year due to increased number of employees and annual salary increases. Other expenses increased $19.1 million and was primarily driven by expenses related to the Alta division and a $7.1 million increase in acquisition related expenses. Acquisition-related expenses were $8.3 million in the current year compared to $1.2 million in the prior year.

Provision for Credit Losses 

The provision for credit loss expense was $5.5 million for the first six months of 2022, including provision for credit loss expense of $3.0 million on the loan portfolio and credit loss expense of $2.5 million on unfunded loan commitments. The provision for credit loss expense of $3.0 million on the loan portfolio in the current year increased $8.2 million over the provision for credit loss benefit of $5.2 million in the prior year which was primarily attributable to organic loan growth. Net charge-offs during the current year were $2.7 million compared to $1.6 million during the prior year.

Federal and State Income Tax Expense

Tax expense of $31.3 million in the first six months of 2022 decreased $7.1 million, or 19 percent, over the prior year same period. The effective tax rate for 2022 was 17.8 percent compared to 19.5 percent in the prior year.

Efficiency Ratio

The efficiency ratio was 56.42 percent for the first six months of 2022 compared to 48.31 percent for the same period last year. Excluding the impact from the PPP loans and acquisition related expenses, the efficiency ratio was 55.19 in 2022 compared to 52.89 in 2021 with the increase driven by the decrease in gain on the sale of residential loans and the increase in non-interest 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 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 the negative version of those words 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 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 (express or implied) 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 in 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 Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin and overall profitability;
  • legislative or regulatory changes, such as the those signaled by the Biden Administration, as well as increased banking and consumer protection regulation, that may adversely affect the Company’s business;
  • 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, July 22, 2022. The conference call will be accessible by telephone and webcast. Investors who would like to call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BI5ae3db12b0eb47b58e17e4348de70584. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/8mhnune6. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.

About Glacier Bancorp, Inc.

Glacier Bancorp, Inc. (NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions located across its eight state Western U.S. footprint: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), North Cascades Bank (Chelan, WA), The Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), and Western Security Bank (Billings, MT).

Glacier Bancorp, Inc.

Unaudited Condensed Consolidated Statements of Financial Condition

(Dollars in thousands, except per share data)   Jun 30,

2022
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
Assets                
Cash on hand and in banks   $ 293,541     282,335     198,087     272,363  
Interest bearing cash deposits     121,865     154,470     239,599     648,844  
     Cash and cash equivalents     415,406     436,805     437,686     921,207  
Debt securities, available-for-sale     6,209,199     6,535,763     9,170,849     6,147,143  
Debt securities, held-to-maturity     3,788,486     3,576,941     1,199,164     1,024,730  
     Total debt securities     9,997,685     10,112,704     10,370,013     7,171,873  
Loans held for sale, at fair value     33,837     51,284     60,797     98,410  
Loans receivable     14,399,755     13,731,019     13,432,031     11,238,048  
Allowance for credit losses     (172,963 )   (176,159 )   (172,665 )   (151,448 )
     Loans receivable, net     14,226,792     13,554,860     13,259,366     11,086,600  
Premises and equipment, net     386,198     373,123     372,597     315,573  
Other real estate owned and foreclosed assets     379     43     18     771  
Accrued interest receivable     80,339     81,467     76,673     70,452  
Deferred tax asset     147,263     120,025     27,693      
Core deposit intangible, net     46,930     49,594     52,259     50,533  
Goodwill     985,393     985,393     985,393     514,013  
Non-marketable equity securities     33,215     13,217     10,020     10,019  
Bank-owned life insurance     168,231     167,298     167,671     123,035  
Other assets     168,337     154,511     120,459     125,547  
     Total assets   $ 26,690,005     26,100,324     25,940,645     20,488,033  
Liabilities                
Non-interest bearing deposits   $ 8,061,304     7,990,003     7,779,288     6,307,794  
Interest bearing deposits     13,722,379     13,707,892     13,557,961     10,453,098  
Securities sold under agreements to repurchase     968,197     958,479     1,020,794     995,201  
FHLB advances     580,000     80,000          
Other borrowed funds     66,200     57,258     44,094     33,556  
Subordinated debentures     132,701     132,661     132,620     132,540  
Accrued interest payable     2,334     2,284     2,409     2,433  
Deferred tax liability                 6,463  
Other liabilities     260,651     237,554     225,857     202,993  
     Total liabilities     23,793,766     23,166,131     22,763,023     18,134,078  
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     1,108     1,108     1,107     955  
Paid-in capital     2,341,097     2,339,405     2,338,814     1,496,488  
Retained earnings – substantially restricted     881,246     841,489     810,342     766,070  
Accumulated other comprehensive (loss) income     (327,212 )   (247,809 )   27,359     90,442  
     Total stockholders’ equity     2,896,239     2,934,193     3,177,622     2,353,955  
     Total liabilities and stockholders’ equity   $ 26,690,005     26,100,324     25,940,645     20,488,033  
 
 

Glacier Bancorp, Inc.

Unaudited Condensed Consolidated Statements of Operations

    Three Months ended   Six Months ended
(Dollars in thousands, except per share data)   Jun 30,

2022
  Mar 31,

2022
  Jun 30,

2021
  Jun 30,

2022
  Jun 30,

2021
Interest Income                    
Debt securities   $ 42,841     38,654   28,730     81,495   56,036  
Residential real estate loans     13,026     15,515   9,541     28,541   19,687  
Commercial loans     131,259     124,556   110,829     255,815   224,370  
Consumer and other loans     12,511     11,791   10,856     24,302   21,415  
     Total interest income     199,637     190,516   159,956     390,153   321,508  
Interest Expense                    
Deposits     3,141     3,464   2,804     6,605   5,818  
Securities sold under agreements to

repurchase
    367     393   651     760   1,340  
Federal Home Loan Bank advances     1,298     12       1,310    
Other borrowed funds     264     220   177     484   351  
Subordinated debentures     1,129     872   855     2,001   1,718  
     Total interest expense     6,199     4,961   4,487     11,160   9,227  
Net Interest Income     193,438     185,555   155,469     378,993   312,281  
Provision for credit losses     (1,533 )   7,031   (5,653 )   5,498   (5,605 )
     Net interest income after provision for credit losses     194,971     178,524   161,122     373,495   317,886  
Non-Interest Income                    
Service charges and other fees     17,309     17,111   13,795     34,420   26,587  
Miscellaneous loan fees and charges     3,850     3,555   2,923     7,405   5,701  
Gain on sale of loans     4,996     9,015   16,106     14,011   37,730  
(Loss) Gain on sale of debt securities     (260 )   446   (61 )   186   223  
Other income     2,385     3,436   2,759     5,821   5,402  
     Total non-interest income     28,280     33,563   35,522     61,843   75,643  
Non-Interest Expense                    
Compensation and employee benefits     79,803     79,074   64,109     158,877   126,577  
Occupancy and equipment     10,766     10,964   9,208     21,730   18,723  
Advertising and promotions     3,766     3,232   2,906     6,998   5,277  
Data processing     7,553     7,475   5,661     15,028   10,867  
Other real estate owned and foreclosed

assets
    6       48     6   60  
Regulatory assessments and insurance     3,085     3,055   1,702     6,140   3,581  
Core deposit intangibles amortization     2,665     2,664   2,488     5,329   4,976  
Other expenses     21,877     23,844   13,960     45,721   26,606  
     Total non-interest expense     129,521     130,308   100,082     259,829   196,667  
Income Before Income Taxes     93,730     81,779   96,562     175,509   196,862  
Federal and state income tax expense     17,338     13,984   18,935     31,322   38,433  
Net Income   $ 76,392     67,795   77,627     144,187   158,429  
 
 

Glacier Bancorp, Inc.

Average Balance Sheets

    Three Months ended
    June 30, 2022   March 31, 2022
(Dollars in thousands)   Average

Balance
  Interest &

Dividends
  Average

Yield/

Rate
  Average

Balance
  Interest &

Dividends
  Average

Yield/

Rate
Assets                        
Residential real estate loans   $ 1,229,013     $ 13,026   4.24 %   $ 1,140,224     $ 15,515   5.44 %
Commercial loans 1     11,712,381       132,799   4.55 %     11,318,767       125,919   4.51 %
Consumer and other loans     1,107,396       12,511   4.53 %     1,075,102       11,791   4.45 %
Total loans 2     14,048,790       158,336   4.52 %     13,534,093       153,225   4.59 %
Tax-exempt debt securities 3     1,979,865       18,413   3.72 %     1,723,125       15,664   3.64 %
Taxable debt securities 4     8,685,641       28,473   1.31 %     8,883,211       26,465   1.19 %
Total earning assets     24,714,296       205,222   3.33 %     24,140,429       195,354   3.28 %
Goodwill and intangibles     1,033,601               1,036,315          
Non-earning assets     619,671               756,422          
Total assets   $ 26,367,568             $ 25,933,166          
Liabilities                        
Non-interest bearing deposits   $ 7,991,993     $   %   $ 7,859,706     $   %
NOW and DDA accounts     5,405,470       723   0.05 %     5,279,984       845   0.06 %
Savings accounts     3,261,798       244   0.03 %     3,246,512       332   0.04 %
Money market deposit accounts     3,999,582       1,369   0.14 %     4,030,795       1,381   0.14 %
Certificate accounts     982,397       797   0.33 %     1,019,595       897   0.36 %
Total core deposits     21,641,240       3,133   0.06 %     21,436,592       3,455   0.07 %
Wholesale deposits 5     3,877       8   0.71 %     17,191       9   0.22 %
Repurchase agreements     923,459       367   0.16 %     970,544       393   0.16 %
FHLB advances     476,978       1,298   1.08 %     15,000       12   0.33 %
Subordinated debentures and other borrowed funds     190,072       1,393   2.94 %     179,725       1,092   2.46 %
Total funding liabilities     23,235,626       6,199   0.11 %     22,619,052       4,961   0.09 %
Other liabilities     235,814               249,316          
Total liabilities     23,471,440               22,868,368          
Stockholders’ Equity                        
Common stock     1,108               1,107          
Paid-in capital     2,340,059               2,338,887          
Retained earnings     875,276               847,172          
Accumulated other comprehensive (loss) income     (320,315 )             (122,368 )        
Total stockholders’ equity     2,896,128               3,064,798          
  Total liabilities and stockholders’ equity   $ 26,367,568             $ 25,933,166          
Net interest income (tax-equivalent)       $ 199,023           $ 190,393    
Net interest spread (tax-equivalent)           3.22 %           3.19 %
Net interest margin (tax-equivalent)           3.23 %           3.20 %

______________________________

1 Includes tax effect of $1.5 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2022 and March 31, 2022, respectively.

2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.

3 Includes tax effect of $3.8 million and $3.3 million on tax-exempt debt securities income for the three months ended June 30, 2022 and March 31, 2022, respectively.

4 Includes tax effect of $226 thousand and $225 thousand on federal income tax credits for the three months ended June 30, 2022 and March 31, 2022, respectively.

5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.

Average Balance Sheets (continued)

    Three Months ended
    June 30, 2022   June 30, 2021
(Dollars in thousands)   Average

Balance
  Interest &

Dividends
  Average

Yield/

Rate
  Average

Balance
  Interest &

Dividends
  Average

Yield/

Rate
Assets                        
Residential real estate loans   $ 1,229,013     $ 13,026   4.24 %   $ 825,467   $ 9,541   4.62 %
Commercial loans 1     11,712,381       132,799   4.55 %     9,520,603     112,226   4.73 %
Consumer and other loans     1,107,396       12,511   4.53 %     964,415     10,856   4.51 %
Total loans 2     14,048,790       158,336   4.52 %     11,310,485     132,623   4.70 %
Tax-exempt debt securities 3     1,979,865       18,413   3.72 %     1,548,323     14,740   3.81 %
Taxable debt securities 4     8,685,641       28,473   1.31 %     5,810,800     17,251   1.19 %
Total earning assets     24,714,296       205,222   3.33 %     18,669,608     164,614   3.54 %
Goodwill and intangibles     1,033,601               565,749        
Non-earning assets     619,671               804,897        
Total assets   $ 26,367,568             $ 20,040,254        
Liabilities                        
Non-interest bearing deposits   $ 7,991,993     $   %   $ 6,100,872   $   %
NOW and DDA accounts     5,405,470       723   0.05 %     4,073,819     600   0.06 %
Savings accounts     3,261,798       244   0.03 %     2,295,334     141   0.02 %
Money market deposit accounts     3,999,582       1,369   0.14 %     2,921,642     861   0.12 %
Certificate accounts     982,397       797   0.33 %     955,694     1,181   0.50 %
Total core deposits     21,641,240       3,133   0.06 %     16,347,361     2,783   0.07 %
Wholesale deposits 5     3,877       8   0.71 %     34,301     21   0.24 %
Repurchase agreements     923,459       367   0.16 %     974,744     651   0.27 %
FHLB advances     476,978       1,298   1.08 %           %
Subordinated debentures and other borrowed funds     190,072       1,393   2.94 %     166,002     1,032   2.49 %
Total funding liabilities     23,235,626       6,199   0.11 %     17,522,408     4,487   0.10 %
Other liabilities     235,814               168,613        
Total liabilities     23,471,440               17,691,021        
Stockholders’ Equity                        
Common stock     1,108               955        
Paid-in capital     2,340,059               1,495,886        
Retained earnings     875,276               756,561        
Accumulated other comprehensive (loss) income     (320,315 )             95,831        
Total stockholders’ equity     2,896,128               2,349,233        
Total liabilities and stockholders’ equity   $ 26,367,568             $ 20,040,254        
Net interest income (tax-equivalent)       $ 199,023           $ 160,127    
Net interest spread (tax-equivalent)           3.22 %           3.44 %
Net interest margin (tax-equivalent)           3.23 %           3.44 %

______________________________

1 Includes tax effect of $1.5 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2022 and 2021, 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 $3.8 million and $3.0 million on tax-exempt debt securities income for the three months ended June 30, 2022 and 2021, respectively.

4 Includes tax effect of $226 thousand and $255 thousand on federal income tax credits for the three months ended June 30, 2022 and 2021, respectively.

5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.

Average Balance Sheets (continued)

    Six Months ended
    June 30, 2022   June 30, 2021
(Dollars in thousands)   Average

Balance
  Interest &

Dividends
  Average

Yield/

Rate
  Average

Balance
  Interest &

Dividends
  Average

Yield/

Rate
Assets                        
Residential real estate loans   $ 1,184,864     $ 28,541   4.82 %   $ 859,073   $ 19,687   4.58 %
Commercial loans 1     11,516,661       258,718   4.53 %     9,466,763     227,154   4.84 %
Consumer and other loans     1,091,338       24,302   4.49 %     957,116     21,415   4.51 %
Total loans 2     13,792,863       311,561   4.56 %     11,282,952     268,256   4.79 %
Tax-exempt debt securities 3     1,852,204       34,077   3.68 %     1,546,912     29,450   3.81 %
Taxable debt securities 4     8,783,881       54,938   1.25 %     5,265,398     33,102   1.26 %
Total earning assets     24,428,948       400,576   3.31 %     18,095,262     330,808   3.69 %
Goodwill and intangibles     1,034,951               566,979        
Non-earning assets     687,668               823,973        
Total assets   $ 26,151,567             $ 19,486,214        
Liabilities                        
Non-interest bearing deposits   $ 7,926,215     $   %   $ 5,847,608   $   %
NOW and DDA accounts     5,343,074       1,568   0.06 %     3,953,009     1,170   0.06 %
Savings accounts     3,254,197       576   0.04 %     2,194,485     279   0.03 %
Money market deposit accounts     4,015,102       2,750   0.14 %     2,821,014     1,726   0.12 %
Certificate accounts     1,000,893       1,694   0.34 %     963,595     2,603   0.54 %
Total core deposits     21,539,481       6,588   0.06 %     15,779,711     5,778   0.07 %
Wholesale deposits 5     10,497       17   0.31 %     36,178     40   0.22 %
Repurchase agreements     946,872       760   0.16 %     987,995     1,340   0.27 %
FHLB advances     247,265       1,310   1.05 %           %
Subordinated debentures and other borrowed funds     184,927       2,485   2.71 %     165,917     2,069   2.51 %
Total funding liabilities     22,929,042       11,160   0.10 %     16,969,801     9,227   0.11 %
Other liabilities     242,528               181,166        
Total liabilities     23,171,570               17,150,967        
Stockholders’ Equity                        
Common stock     1,107               955        
Paid-in capital     2,339,476               1,495,514        
Retained earnings     861,302               733,478        
Accumulated other comprehensive income     (221,888 )             105,300        
Total stockholders’ equity     2,979,997               2,335,247        
Total liabilities and stockholders’ equity   $ 26,151,567             $ 19,486,214        
Net interest income (tax-equivalent)       $ 389,416           $ 321,581    
Net interest spread (tax-equivalent)           3.21 %           3.58 %
Net interest margin (tax-equivalent)           3.21 %           3.58 %

______________________________

1 Includes tax effect of $2.9 million and $2.8 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2022 and 2021, 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 $7.1 million and $6.0 million on tax-exempt debt securities income for the six months ended June 30, 2022 and 2021, respectively.

4 Includes tax effect of $451 thousand and $510 thousand on federal income tax credits for the six months ended June 30, 2022 and 2021, respectively.

5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.

Loan Portfolio by Regulatory Classification

    Loans Receivable, by Loan Type   % Change from
(Dollars in thousands)   Jun 30,

2022
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
Custom and owner occupied construction   $ 282,916     $ 265,579     $ 263,758     $ 158,405     7 %   7 %   79 %
Pre-sold and spec construction     269,568       258,429       257,568       163,740     4 %   5 %   65 %
Total residential construction     552,484       524,008       521,326       322,145     5 %   6 %   72 %
Land development     201,607       180,270       185,200       111,736     12 %   9 %   80 %
Consumer land or lots     197,394       184,217       173,305       138,292     7 %   14 %   43 %
Unimproved land     101,266       90,498       81,064       63,469     12 %   25 %   60 %
Developed lots for operative builders     68,087       61,276       41,840       27,143     11 %   63 %   151 %
Commercial lots     95,958       98,403       99,418       64,664     (2 )%   (3 )%   48 %
Other construction     931,000       833,218       762,970       554,548     12 %   22 %   68 %
Total land, lot, and other construction     1,595,312       1,447,882       1,343,797       959,852     10 %   19 %   66 %
Owner occupied     2,747,152       2,675,681       2,645,841       2,019,860     3 %   4 %   36 %
Non-owner occupied     3,333,915       3,190,519       3,056,658       2,436,672     4 %   9 %   37 %
Total commercial real estate     6,081,067       5,866,200       5,702,499       4,456,532     4 %   7 %   36 %
Commercial and industrial     1,353,248       1,378,500       1,463,022       1,654,237     (2 )%   (8 )%   (18 )%
Agriculture     758,394       731,248       751,185       746,678     4 %   1 %   2 %
1st lien     1,596,878       1,466,279       1,393,267       1,105,579     9 %   15 %   44 %
Junior lien     34,149       33,438       34,830       38,029     2 %   (2 )%   (10 )%
Total 1-4 family     1,631,027       1,499,717       1,428,097       1,143,608     9 %   14 %   43 %
Multifamily residential     562,480       545,483       545,001       398,499     3 %   3 %   41 %
Home equity lines of credit     820,721       753,362       761,990       693,135     9 %   8 %   18 %
Other consumer     213,943       207,827       207,513       201,336     3 %   3 %   6 %
Total consumer     1,034,664       961,189       969,503       894,471     8 %   7 %   16 %
States and political subdivisions     695,396       659,742       615,251       631,199     5 %   13 %   10 %
Other     169,520       168,334       153,147       129,237     1 %   11 %   31 %
Total loans receivable, including loans held for sale     14,433,592       13,782,303       13,492,828       11,336,458     5 %   7 %   27 %
Less loans held for sale 1     (33,837 )     (51,284 )     (60,797 )     (98,410 )   (34 )%   (44 )%   (66 )%
Total loans receivable   $ 14,399,755     $ 13,731,019     $ 13,432,031     $ 11,238,048     5 %   7 %   28 %

______________________________

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)   Jun 30,

2022
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
  Jun 30,

2022
  Jun 30,

2022
  Jun 30,

2022
Custom and owner occupied construction   $ 230   233   237   243   230    
Land development     197   240   250   279   197    
Consumer land or lots     157   160   309   190   157    
Unimproved land     107   128   124   178   107    
Developed lots for operative builders     260         260    
Commercial lots           368      
Other construction     12,884   12,884   12,884     12,884    
Total land, lot and other construction     13,605   13,412   13,567   1,015   13,605    
Owner occupied     4,013   3,508   3,918   3,747   3,809   204  
Non-owner occupied     1,491   1,526   6,063   1,892   1,491    
Total commercial real estate     5,504   5,034   9,981   5,639   5,300   204  
Commercial and Industrial     5,741   4,252   3,066   6,046   4,331   1,051   359
Agriculture     9,169   28,801   29,151   31,742   5,878   3,291  
1st lien     2,196   2,015   2,870   4,186   2,016   180  
Junior lien     200   301   136   272   145   55  
Total 1-4 family     2,396   2,316   3,006   4,458   2,161   235  
Multifamily residential     4,765   6,469   6,548     4,765    
Home equity lines of credit     1,684   1,416   1,563   2,653   1,601   83  
Other consumer     466   543   460   542   263   183   20
Total consumer     2,150   1,959   2,023   3,195   1,864   266   20
Other     17     112   703     17  
Total   $ 43,966   62,476   67,691   53,041   38,523   5,064   379
 
 

Glacier Bancorp, Inc.

Credit Quality Summary by Regulatory Classification (continued)

    Accruing 30-89 Days Delinquent Loans,  by Loan Type   % Change from
(Dollars in thousands)   Jun 30,

2022
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
Custom and owner occupied construction   $ 2,046   $ 703   $ 1,243   $   191 %   65 %   n/m  
Pre-sold and spec construction     602         443     70   n/m     36 %   760 %
Total residential construction     2,648     703     1,686     70   277 %   57 %   3,683 %
Land development     365     317           15 %   n/m     n/m  
Consumer land or lots     337     28     149       1,104 %   126 %   n/m  
Unimproved land     590         305     307   n/m     93 %   92 %
Developed lots for operative builders         142           (100 )%   n/m     n/m  
Commercial lots         54           (100 )%   n/m     n/m  
Other construction             30,788       n/m     (100 )%   n/m  
Total land, lot and other construction     1,292     541     31,242     307   139 %   (96 )%   321 %
Owner occupied     1,560     3,778     1,739     2,243   (59 )%   (10 )%   (30 )%
Non-owner occupied     123     266     1,558     574   (54 )%   (92 )%   (79 )%
Total commercial real estate     1,683     4,044     3,297     2,817   (58 )%   (49 )%   (40 )%
Commercial and industrial     5,969     3,275     4,732     2,947   82 %   26 %   103 %
Agriculture     851     162     459     837   425 %   85 %   2 %
1st lien     329     2,963     2,197     736   (89 )%   (85 )%   (55 )%
Junior lien     105     78     87     106   35 %   21 %   (1 )%
Total 1-4 family     434     3,041     2,284     842   (86 )%   (81 )%   (48 )%
Home equity lines of credit     1,071     1,315     1,994     1,942   (19 )%   (46 )%   (45 )%
Other consumer     1,140     1,097     1,681     919   4 %   (32 )%   24 %
Total consumer     2,211     2,412     3,675     2,861   (8 )%   (40 )%   (23 )%
States and political subdivisions     7     21     1,733       (67 )%   (100 )%   n/m  
Other     1,493     1,881     1,458     1,395   (21 )%   2 %   7 %
Total   $ 16,588   $ 16,080   $ 50,566   $ 12,076   3 %   (67 )%   37 %

______________________________

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)   Jun 30,

2022
  Mar 31,

2022
  Dec 31,

2021
  Jun 30,

2021
  Jun 30,

2022
  Jun 30,

2022
Custom and owner occupied construction   $                  
Pre-sold and spec construction     (8 )   (4 )   (15 )   (8 )     8
Total residential construction     (8 )   (4 )   (15 )   (8 )     8
Land development     (21 )   (21 )   (233 )   (77 )     21
Consumer land or lots     (10 )   (10 )   (165 )   (164 )     10
Unimproved land     (1 )       (241 )   (21 )     1
Developed lots for operative builders                      
Commercial lots                      
Other construction                      
Total land, lot and other construction     (32 )   (31 )   (639 )   (262 )     32
Owner occupied     229     (386 )   (423 )   (70 )   1,642   1,413
Non-owner occupied     (3 )   (2 )   (357 )   (503 )     3
Total commercial real estate     226     (388 )   (780 )   (573 )   1,642   1,416
Commercial and industrial     (458 )   (449 )   41     (218 )   308   766
Agriculture     (4 )   (2 )   (20 )   (6 )     4
1st lien     (56 )   (9 )   (331 )   (237 )     56
Junior lien     (297 )   (78 )   (650 )   (475 )     297
Total 1-4 family     (353 )   (87 )   (981 )   (712 )     353
Multifamily residential             (40 )   (40 )    
Home equity lines of credit     (51 )   (5 )   (621 )   (23 )   44   95
Other consumer     166     55     236     74     298   132
Total consumer     115     50     (385 )   51     342   227
States and political subdivisions                      
Other     3,207     1,761     5,148     3,329     4,748   1,541
Total   $ 2,693     850     2,329     1,561     7,040   4,347
 

Visit our website at www.glacierbancorp.com

CONTACT: Randall M. Chesler, CEO
(406) 751-4722
Ron J. Copher, CFO
(406) 751-7706

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