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Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2016

HIGHLIGHTS:

  • Net income of $28.7 million for the current quarter, an increase of 4 percent over the prior year first quarter net income of $27.7 million.
  • Current quarter diluted earnings per share of $0.38, an increase of 3 percent from the prior year first quarter diluted earnings per share of $0.37.
  • Loan growth of $119 million, or 9 percent annualized for the current quarter.
  • Net interest margin of 4.01 percent as a percentage of earning assets, on a tax equivalent basis, for the current quarter.
  • Dividend declared of $0.20 per share, an increase of $0.01 per share, or 5 percent, over the prior quarter. The dividend was the 124th consecutive quarterly dividend declared by the Company.
  • The Company successfully completed the first phase of the consolidation of its bank divisions’ core database systems into our new “Gold Bank” core database system.
  • The Company yesterday announced the signing of a definitive agreement to acquire Treasure State Bank, a community bank based in Missoula, Montana. As of December, 31, 2015, Treasure State Bank had total assets of $71 million, total loans of $53 million and total deposits of $58 million.

Financial Highlights

At or for the Three Months ended
(Dollars in thousands, except per share and market data)Mar 31,
2016
Dec 31,
2015
Mar 31,
2015
Operating results
Net income$28,682 29,508 27,670
Basic earnings per share$0.38 0.39 0.37
Diluted earnings per share$0.38 0.39 0.37
Dividends declared per share 1$0.20 0.49 0.18
Market value per share
Closing$25.42 26.53 25.15
High$26.34 29.69 27.47
Low$22.19 25.74 22.27
Selected ratios and other data
Number of common stock shares outstanding76,168,388 76,086,288 75,530,030
Average outstanding shares - basic76,126,251 75,893,521 75,206,348
Average outstanding shares - diluted76,173,417 75,968,169 75,244,959
Return on average assets (annualized)1.28% 1.32% 1.36%
Return on average equity (annualized)10.53% 10.66% 10.72%
Efficiency ratio56.53% 56.52% 54.80%
Dividend payout ratio52.63% 125.64% 48.65%
Loan to deposit ratio74.65% 73.94% 73.42%
Number of full time equivalent employees2,184 2,149 1,995
Number of locations144 144 137
Number of ATMs167 158 158
_______
1 Includes a special dividend declared of $0.30 per share for the three months ended December 31, 2015.

KALISPELL, Mont., April 21, 2016 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (Nasdaq:GBCI) reported net income of $28.7 million for the current quarter, an increase of $1.0 million, or 4 percent, from the $27.7 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.38 per share, an increase of $0.01, or 3 percent, from the prior year first quarter diluted earnings per share of $0.37. Included in the current quarter was $135 thousand from acquisition-related expenses and $831 thousand of expenses related to the Company’s consolidation of its bank divisions’ core database systems (Core Consolidation Project or “CCP”) including expenses related to the re-issuance of debit cards with chip technology. The Company’s Core Consolidation Project will occur throughout the current year and is expected to be completed by year end. “The first quarter was a nice start to the year for us,” said Mick Blodnick, President and Chief Executive Officer. “To produce this level of results at a time when we also had significant costs and time allocated to a number of major internal projects is a testament to the great work by our staff this quarter. Although these projects will run through the rest of the year, in the future they will streamline multiple functions and allow us to operate more efficiently,” Blodnick said.

Asset Summary

$ Change from
(Dollars in thousands)Mar 31,
2016
Dec 31,
2015
Mar 31,
2015
Dec 31,
2015
Mar 31,
2015
Cash and cash equivalents$150,861 193,253 183,466 (42,392) (32,605)
Investment securities, available-for-sale2,604,625 2,610,760 2,544,093 (6,135) 60,532
Investment securities, held-to-maturity691,663 702,072 570,285 (10,409) 121,378
Total investment securities3,296,288 3,312,832 3,114,378 (16,544) 181,910
Loans receivable
Residential real estate685,026 688,912 637,465 (3,886) 47,561
Commercial real estate2,680,691 2,633,953 2,418,843 46,738 261,848
Other commercial1,172,956 1,099,564 1,007,173 73,392 165,783
Home equity423,895 420,901 402,970 2,994 20,925
Other consumer234,625 235,351 221,218 (726) 13,407
Loans receivable5,197,193 5,078,681 4,687,669 118,512 509,524
Allowance for loan and lease losses(130,071) (129,697) (129,856) (374) (215)
Loans receivable, net5,067,122 4,948,984 4,557,813 118,138 509,309
Other assets606,471 634,163 619,439 (27,692) (12,968)
Total assets$9,120,742 9,089,232 8,475,096 31,510 645,646

Total investment securities of $3.296 billion at March 31, 2016 decreased $16.5 million, or 50 basis points, during the current quarter and increased $182 million, or 6 percent, from March 31, 2015. The Company continues to selectively purchase investment securities when the Company has excess liquidity. Investment securities represented 36 percent of total assets at March 31, 2016 compared to 36 percent of total assets at December 31, 2015 and 37 percent at March 31, 2015.

The loan portfolio increased $119 million, or 9 percent annualized, during the current quarter. The loan category with the largest dollar and percentage increase during the current quarter was other commercial loans which increased $73.4 million, or 7 percent, of which $35.6 million of the increase was from municipal and SBA loans. Excluding the acquisition of Cañon National Bank (“Cañon”) in October 2015, the loan portfolio increased $350 million, or 7 percent, since March 31, 2015 with $152 million and $150 million of the increase coming from growth in commercial real estate and other commercial loans, respectively. “Our loan growth in the quarter was exceptional especially considering it came in the first quarter of the year,” Blodnick said. “A substantial portion of the growth came from municipal loans, something all of our Banks have worked extremely hard at generating. Hopefully, we can continue to grow the loan portfolio with more of these solid credits.”

Credit Quality Summary

At or for the
Three Months
ended
At or for the
Year ended
At or for the
Three Months
ended
(Dollars in thousands)Mar 31,
2016
Dec 31,
2015
Mar 31,
2015
Allowance for loan and lease losses
Balance at beginning of period$129,697 129,753 129,753
Provision for loan losses568 2,284 765
Charge-offs(1,163) (7,001) (1,297)
Recoveries969 4,661 635
Balance at end of period$130,071 129,697 129,856
Other real estate owned$22,085 26,815 28,124
Accruing loans 90 days or more past due4,615 2,131 2,357
Non-accrual loans53,523 51,133 60,287
Total non-performing assets 1$80,223 80,079 90,768
Non-performing assets as a percentage of subsidiary assets0.88% 0.88% 1.07%
Allowance for loan and lease losses as a percentage of non-performing loans224% 244% 207%
Allowance for loan and lease losses as a percentage of total loans2.50% 2.55% 2.77%
Net charge-offs as a percentage of total loans% 0.05% 0.01%
Accruing loans 30-89 days past due$23,996 19,413 33,450
Accruing troubled debt restructurings$53,311 63,590 69,397
Non-accrual troubled debt restructurings$23,879 27,057 34,237
__________
1 As of March 31, 2016, non-performing assets have not been reduced by U.S. government guarantees of $2.2 million.


Non-performing assets at March 31, 2016 were $80.2 million, an increase of $144 thousand, or 18 basis points, during the current quarter. Non-performing assets at March 31, 2016 decreased $10.5 million, or 12 percent, from a year ago. Early stage delinquencies (accruing loans 30-89 days past due) of $24.0 million at March 31, 2016 increased $4.6 million from the prior quarter and decreased $9.5 million from the prior year first quarter.

The allowance for loan and lease losses (“allowance”) was $130 million at March 31, 2016, consistent with prior periods. The allowance as a percent of total loans outstanding at March 31, 2016 was 2.50 percent, a slight decrease from 2.55 percent at December 31, 2015. The allowance as a percent of total loans in the current quarter decreased 27 basis points from 2.77 percent at March 31, 2015 which was driven primarily by loan growth, stabilizing credit quality, and no allowance carried over from the Cañon acquisition as a result of the acquired loans recorded at fair value.

Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands)Provision
for Loan
Losses
Net
Charge-Offs
(Recoveries)
ALLL
as a Percent
of Loans
Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
Non-Performing
Assets to
Total Subsidiary
Assets
First quarter 2016$568 $194 2.50% 0.46% 0.88%
Fourth quarter 2015411 1,482 2.55% 0.38% 0.88%
Third quarter 2015826 577 2.68% 0.37% 0.97%
Second quarter 2015282 (381) 2.71% 0.59% 0.98%
First quarter 2015765 662 2.77% 0.71% 1.07%
Fourth quarter 2014191 1,070 2.89% 0.58% 1.08%
Third quarter 2014360 364 2.93% 0.39% 1.21%
Second quarter 2014239 332 3.11% 0.44% 1.30%

Net charge-offs of loans for the current quarter were $194 thousand compared to net charge-offs of $1.5 million for the prior quarter and net charge-offs of $662 thousand from the same quarter last year. The current quarter provision for loan losses of $568 thousand increased $157 thousand from the prior quarter and decreased $197 thousand from the prior year first quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of the loan loss provision.

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

Liability Summary

$ Change from
(Dollars in thousands)Mar 31,
2016
Dec 31,
2015
Mar 31,
2015
Dec 31,
2015
Mar 31,
2015
Deposits
Non-interest bearing deposits$1,887,004 1,918,310 1,675,451 (31,306) 211,553
NOW and DDA accounts1,448,454 1,516,026 1,313,036 (67,572) 135,418
Savings accounts879,541 838,274 748,590 41,267 130,951
Money market deposit accounts1,411,970 1,382,028 1,345,422 29,942 66,548
Certificate accounts1,063,735 1,060,650 1,164,909 3,085 (101,174)
Core deposits, total6,690,704 6,715,288 6,247,408 (24,584) 443,296
Wholesale deposits325,490 229,720 211,384 95,770 114,106
Deposits, total7,016,194 6,945,008 6,458,792 71,186 557,402
Repurchase agreements445,960 423,414 425,652 22,546 20,308
Federal Home Loan Bank advances313,969 394,131 298,148 (80,162) 15,821
Other borrowed funds6,633 6,602 6,703 31 (70)
Subordinated debentures125,884 125,848 125,741 36 143
Other liabilities118,422 117,579 106,536 843 11,886
Total liabilities$8,027,062 8,012,582 7,421,572 14,480 605,490

Non-interest bearing deposits of $1.887 billion at March 31, 2016, decreased $31 million, or 2 percent, from the prior quarter which was driven by seasonal fluctuations. Excluding the Cañon acquisition, non-interest bearing deposits increased $122 million, or 7 percent, from March 31, 2015. Core interest bearing deposits of $4.804 billion at March 31, 2016, increased $6.7 million, or 14 basis points, from the prior quarter. The increase in savings and money market accounts during the current quarter offset the decrease in NOW and DDA accounts. Excluding the Cañon acquisition, core interest bearing deposits at March 31, 2016 increased $83.5 million, or 2 percent, from March 31, 2015. Wholesale deposits (i.e., brokered deposits classified as NOW, DDA, money market deposit and certificate accounts) of $325 million at March 31, 2016 increased $95.8 million over the prior quarter and increased $114 million over the prior year first quarter. A portion of the increases were driven by a need to obtain wholesale deposits necessary for the interest rate swap.

Securities sold under agreements to repurchase (“repurchase agreements”) of $446 million at March 31, 2016 increased $22.5 million, or 5 percent, from the prior quarter and increased $20.3 million, or 5 percent, from the prior year first quarter. Federal Home Loan Bank (“FHLB”) advances of $314 million at March 31, 2016 decreased $80.2 million, or 20 percent, during the current quarter due to stable deposit balances and reduced need for additional borrowings.

Stockholders’ Equity Summary

$ Change from
(Dollars in thousands, except per share data)Mar 31, Dec 31, Mar 31, Dec 31, Mar 31,
20162015201520152015
Common equity$1,088,359 1,074,661 1,035,497 13,698 52,862
Accumulated other comprehensive income5,321 1,989 18,027 3,332 (12,706)
Total stockholders’ equity1,093,680 1,076,650 1,053,524 17,030 40,156
Goodwill and core deposit intangible, net(154,396) (155,193) (143,099) 797 (11,297)
Tangible stockholders’ equity$939,284 921,457 910,425 17,827 28,859
Stockholders’ equity to total assets11.99% 11.85% 12.43%
Tangible stockholders’ equity to total tangible assets10.48% 10.31% 10.93%
Book value per common share$14.36 14.15 13.95 0.21 0.41
Tangible book value per common share$12.33 12.11 12.05 0.22 0.28

Tangible stockholders’ equity of $939 million at March 31, 2016 increased $17.8 million, or 2 percent, from the prior quarter primarily from earnings retention and an increase in accumulated other comprehensive income. Tangible stockholders’ equity increased $28.9 million, or 3 percent, from a year ago, the result of earnings retention and $15.2 million of Company stock issued in connection with the Cañon acquisition. These two items offset the decrease in accumulated other comprehensive income and increases in goodwill and other intangibles from the acquisition. At March 31, 2016, the tangible book value per common share was $12.33 an increase of $0.22 per share from $12.11 the prior quarter principally due to earnings retention. Tangible book value per common share for March 31, 2016, increased $0.28 per share from the prior year first quarter.

Cash Dividend
On March 30, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per share, a $0.01 per share, or 5 percent, increase over the prior quarter dividend. The Company has increased its quarterly dividend 40 times. The dividend was payable April 21, 2016 to shareholders of record April 12, 2016. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended March 31, 2016
Compared to December 31, 2015 and March 31, 2015

Income Summary

Three Months ended $ Change from
(Dollars in thousands)Mar 31,
2016
Dec 31,
2015
Mar 31,
2015
Dec 31,
2015
Mar 31,
2015
Net interest income
Interest income$84,381 83,211 77,486 1,170 6,895
Interest expense7,675 7,215 7,382 460 293
Total net interest income76,706 75,996 70,104 710 6,602
Non-interest income
Service charges and other fees14,331 15,044 12,999 (713) 1,332
Miscellaneous loan fees and charges1,021 922 1,157 99 (136)
Gain on sale of loans5,992 6,033 5,430 (41) 562
Gain on sale of investments108 143 5 (35) 103
Other income2,800 2,325 3,102 475 (302)
Total non-interest income24,252 24,467 22,693 (215) 1,559
$100,958 100,463 92,797 495 8,161
Net interest margin (tax-equivalent)4.01% 4.02% 4.03%

Net Interest Income
In the current quarter, interest income of $84.4 million increased $1.2 million, or 1 percent from the prior quarter and increased $6.9 million, or 9 percent, over the prior year first quarter. The increases in interest income over the prior periods were driven primarily by increases in interest income on commercial loans which increased $1.4 million, or 3 percent, over the prior quarter and increased $5.5 million, or 14 percent, over the prior year first quarter and was the result of an increased volume of commercial loans. Interest income of $23.9 million from investment securities increased $152 thousand, or 1 percent, over the prior quarter and increased $924 thousand, or 4 percent, over the prior year first quarter.

The current quarter interest expense of $7.7 million increased $460 thousand, or 6 percent, from the prior quarter and increased $293 thousand from the prior year first quarter. The increases in interest expense were driven by the increase in wholesale deposits and the additional interest expense for an interest rate swap with a notional $100 million that began its accrual period in December 2015. The total cost of funding (including non-interest bearing deposits) for the current quarter was 39 basis points compared to 37 basis points for the prior quarter and 42 basis points in the prior year first quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.01 percent compared to 4.02 percent in the prior quarter. During the current quarter, the earning asset yield increased by 1 basis point and was the result of a 1 basis point increase in loan yields. The cost of funds increased 2 basis points during the current quarter due to increased wholesale deposits and the higher interest expense from the previously mentioned interest rate swap. The Company’s current quarter net interest margin decreased 2 basis points from the prior year first quarter net interest margin of 4.03 percent. The decrease in the net interest margin from the prior year first quarter was the result of a 4 basis points reduction in the yield on earning assets that outpaced the 3 basis points reduction in cost of funding. The yield on earning assets benefited from the shift in earning assets from the lower yielding investment securities to the higher yielding loans; nevertheless it was outpaced by the overall decreased yield on the loan portfolio. “The Company was pleased to maintain a net interest margin above 4 percent for the quarter given the volatile interest rate environment. The increase in overall loan yields and maintaining the low cost of retail deposits supported the quarterly performance of the net interest margin,” said Ron Copher, Chief Financial Officer.

Non-interest Income
Non-interest income for the current quarter totaled $24.3 million, a decrease of $215 thousand, or 1 percent, from the prior quarter and an increase of $1.6 million, or 7 percent, over the same quarter last year. Service fee income of $14.3 million, increased $1.3 million, or 10 percent, from the prior year first quarter driven by the increased number of deposit accounts. Gain on sale of residential loans for the current quarter increased $562 thousand, or 10 percent, from the prior year first quarter. In the prior year first quarter, the Company experienced a strong quarter for sales of residential loans as a result of the refinance activity and the Company’s resource commitment to this line of business has benefited the Company with an even stronger current year first quarter. Other non-interest income of $2.8 million for the current quarter increased $475 thousand, or 20 percent, over the prior quarter primarily due to annual vendor incentives received and a gain on the sale of a bank building. Other non-interest income for the current quarter decreased $302 thousand from the prior year first quarter due to insurance proceeds received in the prior year first quarter from a bank owned life insurance policy. Included in other income was operating revenue of $11 thousand from OREO and a gain of $203 thousand from the sale of OREO, a combined total of $214 thousand for the current quarter compared to $239 thousand for the prior quarter and $417 thousand for the prior year first quarter.

Non-interest Expense Summary

Three Months ended $ Change from
(Dollars in thousands)Mar 31,
2016
Dec 31,
2015
Mar 31,
2015
Dec 31,
2015
Mar 31,
2015
Compensation and employee benefits$36,941 35,902 32,244 1,039 4,697
Occupancy and equipment6,676 6,579 6,060 97 616
Advertising and promotions2,125 2,035 1,927 90 198
Data processing3,373 3,244 2,551 129 822
Other real estate owned390 511 758 (121) (368)
Regulatory assessments and insurance1,508 1,494 1,305 14 203
Core deposit intangibles amortization797 758 731 39 66
Other expenses10,546 11,680 9,921 (1,134) 625
Total non-interest expense$62,356 62,203 55,497 153 6,859

Compensation and employee benefits for the current quarter increased by $1.0 million, or 3 percent, from the prior quarter as a result of an increased number of employees from the Cañon acquisition and annual salary increases. Compensation and employee benefits for the current quarter increased by $4.7 million, or 15 percent, from the prior year first quarter due to the increased number of employees from the Community Bank, Inc. (“CB”) acquisition in February of 2015 and the Cañon acquisition, annual salary increases, and an increase in the number of employees. Current quarter occupancy and equipment expense increased $616 thousand, or 10 percent, from the prior year first quarter as a result of added costs associated with the acquisitions. The current quarter data processing expense increased $822 thousand, or 32 percent, from the prior year first quarter primarily from expenses associated with CCP and expenses from the Cañon acquisition. The current quarter OREO expense of $390 thousand was a decrease of $368 thousand from the prior year first quarter and included $136 thousand of operating expense, $55 thousand of fair value write-downs, and $199 thousand of loss from the sales of OREO. Current quarter other expenses of $10.6 million decreased by $1.1 million, or 10 percent, from the prior quarter. The prior quarter included professional expenses associated with the Cañon acquisition and expenses connected with equity investments in New Markets Tax Credit (“NMTC”) projects. Federal and state income tax expense of $9.4 million in the current quarter increased $1.0 million from the prior quarter and was primarily the result of the NMTC credits recognized in the prior quarter. Current quarter other expenses increased $625 thousand, or 6 percent, over the prior year first quarter with increases related to CCP and increased expenses from recent acquisitions, albeit several areas experienced decreases including outside services, which decreased as a result of acquisition-related expenses in the prior year first quarter.

Efficiency Ratio
Although there were increased expenses in the current quarter related to CCP, the efficiency ratio for the current quarter of 56.53 percent remained stable compared to 56.52 percent in the prior quarter with minimal changes in the income and expense items related to the efficiency ratio. The current quarter efficiency ratio of 56.53 percent compares to 54.80 percent in the prior year first quarter. The 1.73 percent increase in the efficiency ratio resulted primarily from increased compensation expense from recent acquisitions and increased salaries along with increased expenses related to CCP, which outpaced the increases in net interest income and non-interest income for the same period.

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;
  • legislative or regulatory changes, including increased banking and consumer protection regulation that adversely affect the Company’s business;
  • ability to complete pending or prospective future acquisitions, limit certain sources of revenue, or increase cost of operations;
  • 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 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;
  • 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 CEO, the senior management team and the Presidents of Bank divisions;
  • potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks, fraud or system failures; and
  • the Company’s success in managing risks involved in the foregoing.

The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, April 22, 2016. The conference call will be accessible by telephone and through the Internet. Interested individuals are invited to listen to the call by telephone at 877-561-2748 and the conference ID is 77408162. To participate on the webcast, log on to: http://edge.media-server.com/m/p/8dya659f. If you are unable to participate during the live webcast, the call will be archived on our Web site, www.glacierbancorp.com, or by calling 855-859-2056 with the ID 77408162 until May 5, 2016.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is a regional bank holding company providing commercial banking services in 88 communities in Montana, Idaho, Utah, Washington, Wyoming and Colorado. Glacier Bancorp, Inc. is headquartered in Kalispell, Montana, and is the parent company for Glacier Bank, Kalispell and Bank divisions First Security Bank of Missoula; Valley Bank of Helena; Big Sky Western Bank, Bozeman; Western Security Bank, Billings; and First Bank of Montana, Lewistown, all operating in Montana; as well as Mountain West Bank, Coeur d’Alene operating in Idaho, Utah and Washington; Citizens Community Bank, Pocatello, operating in Idaho; 1st Bank, Evanston, operating in Wyoming and Utah; First Bank of Wyoming, Powell and First State Bank, Wheatland, each operating in Wyoming; North Cascades Bank, Chelan, operating in Washington; and Bank of the San Juans, Durango, operating in Colorado.


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)March 31,
2016
December 31,
2015
March 31,
2015
Assets
Cash on hand and in banks$104,222 117,137 109,746
Federal funds sold1,400 6,080
Interest bearing cash deposits45,239 70,036 73,720
Cash and cash equivalents150,861 193,253 183,466
Investment securities, available-for-sale2,604,625 2,610,760 2,544,093
Investment securities, held-to-maturity691,663 702,072 570,285
Total investment securities3,296,288 3,312,832 3,114,378
Loans held for sale40,484 56,514 54,132
Loans receivable5,197,193 5,078,681 4,687,669
Allowance for loan and lease losses(130,071) (129,697) (129,856)
Loans receivable, net5,067,122 4,948,984 4,557,813
Premises and equipment, net192,951 194,030 187,067
Other real estate owned22,085 26,815 28,124
Accrued interest receivable47,363 44,524 43,260
Deferred tax asset55,773 58,475 41,220
Core deposit intangible, net13,758 14,555 12,256
Goodwill140,638 140,638 130,843
Non-marketable equity securities24,199 27,495 54,277
Other assets69,220 71,117 68,260
Total assets$9,120,742 9,089,232 8,475,096
Liabilities
Non-interest bearing deposits$1,887,004 1,918,310 1,675,451
Interest bearing deposits5,129,190 5,026,698 4,783,341
Federal funds purchased
Securities sold under agreements to repurchase445,960 423,414 425,652
FHLB advances313,969 394,131 298,148
Other borrowed funds6,633 6,602 6,703
Subordinated debentures125,884 125,848 125,741
Accrued interest payable3,608 3,517 3,893
Other liabilities114,814 114,062 102,643
Total liabilities8,027,062 8,012,582 7,421,572
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 authorized762 761 755
Paid-in capital736,664 736,368 719,506
Retained earnings - substantially restricted350,933 337,532 315,236
Accumulated other comprehensive income5,321 1,989 18,027
Total stockholders’ equity1,093,680 1,076,650 1,053,524
Total liabilities and stockholders’ equity$9,120,742 9,089,232 8,475,096



Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
Three Months ended
(Dollars in thousands, except per share data)March 31,
2016
December 31,
2015
March 31,
2015
Interest Income
Investment securities$23,883 23,731 22,959
Residential real estate loans8,285 8,572 7,761
Commercial loans44,503 43,109 39,022
Consumer and other loans7,710 7,799 7,744
Total interest income84,381 83,211 77,486
Interest Expense
Deposits4,795 3,932 4,147
Securities sold under agreements to repurchase318 287 241
Federal Home Loan Bank advances1,652 2,156 2,195
Federal funds purchased and other borrowed funds18 18 27
Subordinated debentures892 822 772
Total interest expense7,675 7,215 7,382
Net Interest Income76,706 75,996 70,104
Provision for loan losses568 411 765
Net interest income after provision for loan losses76,138 75,585 69,339
Non-Interest Income
Service charges and other fees14,331 15,044 12,999
Miscellaneous loan fees and charges1,021 922 1,157
Gain on sale of loans5,992 6,033 5,430
Gain on sale of investments108 143 5
Other income2,800 2,325 3,102
Total non-interest income24,252 24,467 22,693
Non-Interest Expense
Compensation and employee benefits36,941 35,902 32,244
Occupancy and equipment6,676 6,579 6,060
Advertising and promotions2,125 2,035 1,927
Data processing3,373 3,244 2,551
Other real estate owned390 511 758
Regulatory assessments and insurance1,508 1,494 1,305
Core deposit intangibles amortization797 758 731
Other expenses10,546 11,680 9,921
Total non-interest expense62,356 62,203 55,497
Income Before Income Taxes38,034 37,849 36,535
Federal and state income tax expense9,352 8,341 8,865
Net Income$28,682 29,508 27,670


Glacier Bancorp, Inc.
Average Balance Sheet
Three Months ended
March 31, 2016 March 31, 2015
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$726,270 $8,285 4.56% $651,700 $7,761 4.76%
Commercial loans 13,749,929 45,335 4.86% 3,282,867 39,605 4.89%
Consumer and other loans653,839 7,710 4.74% 609,853 7,744 5.15%
Total loans 25,130,038 61,330 4.81% 4,544,420 55,110 4.92%
Tax-exempt investment securities 31,352,683 19,383 5.73% 1,302,174 18,493 5.68%
Taxable investment securities 41,999,000 11,461 2.29% 1,904,835 10,754 2.26%
Total earning assets8,481,721 92,174 4.37% 7,751,429 84,357 4.41%
Goodwill and intangibles154,790 140,726
Non-earning assets390,891 379,581
Total assets$9,027,402 $8,271,736
Liabilities
Non-interest bearing deposits$1,863,389 $ % $1,618,132 $ %
NOW and DDA accounts1,465,181 293 0.08% 1,311,330 268 0.08%
Savings accounts863,764 104 0.05% 713,897 89 0.05%
Money market deposit accounts1,406,718 553 0.16% 1,304,006 517 0.16%
Certificate accounts1,071,055 1,564 0.59% 1,165,483 1,843 0.64%
Wholesale deposits 5335,126 2,281 2.74% 220,382 1,430 2.63%
FHLB advances308,040 1,652 2.12% 299,975 2,195 2.93%
Repurchase agreements and other borrowed funds521,565 1,228 0.95% 503,816 1,040 0.84%
Total funding liabilities7,834,838 7,675 0.39% 7,137,021 7,382 0.42%
Other liabilities96,701 88,143
Total liabilities7,931,539 7,225,164
Stockholders’ Equity
Common stock761 752
Paid-in capital736,398 712,127
Retained earnings351,536 314,004
Accumulated other comprehensive income7,168 19,689
Total stockholders’ equity1,095,863 1,046,572
Total liabilities and stockholders’ equity$9,027,402 $8,271,736
Net interest income (tax-equivalent) $84,499 $76,975
Net interest spread (tax-equivalent) 3.98% 3.99%
Net interest margin (tax-equivalent) 4.01% 4.03%
__________
1 Includes tax effect of $832 thousand and $583 thousand on tax-exempt municipal loan and lease income for the three months ended March 31, 2016 and 2015, respectively.
2 Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of $6.6 million and $5.9 million on tax-exempt investment securities income for the three months ended March 31, 2016 and 2015, respectively.
4 Includes tax effect of $352 thousand and $362 thousand on federal income tax credits for the three months ended March 31, 2016 and 2015, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.


Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
Loans Receivable, by Loan Type % Change from
(Dollars in thousands)Mar 31,
2016
Dec 31,
2015
Mar 31,
2015
Dec 31,
2015
Mar 31,
2015
Custom and owner occupied construction$68,893 $75,094 $51,693 (8)% 33%
Pre-sold and spec construction59,220 50,288 44,865 18% 32%
Total residential construction128,113 125,382 96,558 2% 33%
Land development59,539 62,356 81,488 (5)% (27)%
Consumer land or lots93,922 97,270 97,519 (3)% (4)%
Unimproved land73,791 73,844 80,206 % (8)%
Developed lots for operative builders12,973 12,336 14,210 5% (9)%
Commercial lots23,558 22,035 21,059 7% 12%
Other construction166,378 156,784 148,535 6% 12%
Total land, lot, and other construction430,161 424,625 443,017 1% (3)%
Owner occupied944,411 938,625 877,293 1% 8%
Non-owner occupied806,856 774,192 704,990 4% 14%
Total commercial real estate1,751,267 1,712,817 1,582,283 2% 11%
Commercial and industrial664,855 649,553 585,501 2% 14%
Agriculture372,616 367,339 340,364 1% 9%
1st lien841,848 856,193 796,947 (2)% 6%
Junior lien63,162 65,383 67,217 (3)% (6)%
Total 1-4 family905,010 921,576 864,164 (2)% 5%
Multifamily residential197,267 201,542 177,187 (2)% 11%
Home equity lines of credit379,866 372,039 347,693 2% 9%
Other consumer150,047 150,469 141,347 % 6%
Total consumer529,913 522,508 489,040 1% 8%
Other258,475 209,853 163,687 23% 58%
Total loans receivable, including loans held for sale5,237,677 5,135,195 4,741,801 2% 10%
Less loans held for sale 1(40,484) (56,514) (54,132) (28)% (25)%
Total loans receivable$5,197,193 $5,078,681 $4,687,669 2% 11%
_______
1 Loans held for sale are primarily 1st lien 1-4 family loans.


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification


Non-performing Assets, by Loan Type
Non-
Accrual
Loans
Accruing
Loans 90 Days
or More Past
Due
Other
Real Estate
Owned
(Dollars in thousands)Mar 31,
2016
Dec 31,
2015
Mar 31,
2015
Mar 31,
2016
Mar 31,
2016
Mar 31,
2016
Custom and owner occupied construction$995 1,016 1,101 995
Pre-sold and spec construction 218
Total residential construction995 1,016 1,319 995
Land development18,190 17,582 21,220 5,948 249 11,993
Consumer land or lots1,751 2,250 2,531 923 828
Unimproved land11,651 12,328 13,448 8,252 3,399
Developed lots for operative builders457 488 929 264 193
Commercial lots1,333 1,521 2,496 217 1,116
Other construction 4,236 4,989
Total land, lot and other construction33,382 38,405 45,613 15,604 249 17,529
Owner occupied12,130 10,952 13,121 10,471 1,659
Non-owner occupied4,354 3,446 3,771 2,231 1,311 812
Total commercial real estate16,484 14,398 16,892 12,702 1,311 2,471
Commercial and industrial6,046 3,993 6,367 5,984 62
Agriculture3,220 3,281 2,845 3,005 215
1st lien11,041 10,691 9,502 8,713 832 1,496
Junior lien1,111 668 680 745 366
Total 1-4 family12,152 11,359 10,182 9,458 832 1,862
Multifamily residential432 113 432
Home equity lines of credit5,432 5,486 5,507 5,192 107 133
Other consumer280 228 243 151 39 90
Total consumer5,712 5,714 5,750 5,343 146 223
Other1,800 1,800 1,800 1,800
Total$80,223 80,079 90,768 53,523 4,615 22,085


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
Accruing 30-
89 Days Delinquent Loans, by Loan Type
% Change from
(Dollars in thousands)Mar 31,
2016
Dec 31,
2015
Mar 31,
2015
Dec 31,
2015
Mar 31,
2015
Custom and owner occupied construction$ $462 $ (100)% n/m
Pre-sold and spec construction304 181 68% n/m
Total residential construction304 643 (53)% n/m
Land development198 447 (56)% n/m
Consumer land or lots796 166 365 380% 118%
Unimproved land1,284 774 278 66% 362%
Developed lots for operative builders 19 n/m (100)%
Commercial lots 585 n/m (100)%
Other construction 337 (100)% n/m
Total land, lot and other construction2,278 1,724 1,247 32% 83%
Owner occupied4,552 2,760 4,841 65% (6)%
Non-owner occupied1,466 923 4,327 59% (66)%
Total commercial real estate6,018 3,683 9,168 63% (34)%
Commercial and industrial4,907 1,968 6,600 149% (26)%
Agriculture659 1,014 3,715 (35)% (82)%
1st lien5,896 6,272 7,307 (6)% (19)%
Junior lien759 1,077 384 (30)% 98%
Total 1-4 family6,655 7,349 7,691 (9)% (13)%
Multifamily Residential 662 676 (100)% (100)%
Home equity lines of credit2,528 1,046 3,350 142% (25)%
Other consumer607 1,227 1,003 (51)% (39)%
Total consumer3,135 2,273 4,353 38% (28)%
Other40 97 (59)% n/m
Total$23,996 $19,413 $33,450 24% (28)%
_______
n/m - not measurable


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan Type
Charge-Offs Recoveries
(Dollars in thousands)Mar 31,
2016
Dec 31,
2015
Mar 31,
2015
Mar 31,
2016
Mar 31,
2016
Pre-sold and spec construction$(28) (53) (9) 28
Land development(100) (288) (23) 100
Consumer land or lots(240) 66 (15) 25 265
Unimproved land(34) (325) (50) 34
Developed lots for operative builders(12) (85) (96) 12
Commercial lots23 (26) (1) 24 1
Other construction (1) (1)
Total land, lot and other construction(363) (659) (186) 49 412
Owner occupied(27) 247 316 27
Non-owner occupied(1) 93 82 1
Total commercial real estate(28) 340 398 28
Commercial and industrial69 1,389 426 324 255
Agriculture(1) 50 (4) 1
1st lien47 834 (30) 75 28
Junior lien(15) (125) (54) 15
Total 1-4 family32 709 (84) 75 43
Multifamily residential229 (318) (20) 229
Home equity lines of credit179 740 121 229 50
Other consumer95 143 20 155 60
Total consumer274 883 141 384 110
Other10 (1) 102 92
Total$194 2,340 662 1,163 969


Visit our website at www.glacierbancorp.com

CONTACT: Michael J. Blodnick (406) 751-4701 Ron J. Copher (406) 751-7706

Source:Glacier Bancorp, Inc.