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Glacier Bancorp, Inc. Announces Results for the Quarter Ended June 30, 2016

2nd Quarter 2016 Highlights:

  • Record earnings of $30.5 million for the current quarter, an increase $1.1 million, or 4 percent, over the prior year second quarter net income of $29.3 million.
  • Current quarter diluted earnings per share of $0.40, an increase of 3 percent from the prior year second quarter diluted earnings per share of $0.39.
  • Loan growth of $181 million, or 14 percent annualized for the current quarter.
  • Net interest margin of 4.06 percent as a percentage of earning assets, on a tax equivalent basis, for the current quarter compared to 4.01 percent in the prior quarter.
  • Dividend declared of $0.20 per share, an increase of $0.01 per share, or 5 percent, over the prior year second quarter. The dividend was the 125th consecutive quarterly dividend declared by the Company.
  • The Company successfully completed the second and third phase of the consolidation of its bank divisions’ core database systems into our new “Gold Bank” core database system.
  • The Company announced the signing of a definitive agreement to acquire Treasure State Bank based in Missoula, Montana.

First Half of 2016 Highlights:

  • Net income of $59.1 million for the first half of 2016, an increase of 4 percent over $57.0 million for the same period in the prior year.
  • Diluted earnings per share of $0.78, an increase of 3 percent from the prior year first half diluted earnings per share of $0.76.
  • Loan growth of $300 million, or 12 percent annualized for the for the first half of the current year.
  • Net interest margin of 4.04 percent as a percentage of earning assets, on a tax equivalent basis, for the first six months of the current year compared to 4.00 percent for the same period last year.

Financial Highlights

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,
2016
Mar 31,
2016
Jun 30,
2015
Jun 30,
2016
Jun 30,
2015
Operating results
Net income$30,451 28,682 29,335 59,133 57,005
Basic earnings per share$0.40 0.38 0.39 0.78 0.76
Diluted earnings per share$0.40 0.38 0.39 0.78 0.76
Dividends declared per share$0.20 0.20 0.19 0.40 0.37
Market value per share
Closing$26.58 25.42 29.42 26.58 29.42
High$27.68 26.34 30.08 27.68 30.08
Low$24.31 22.19 24.76 22.19 22.27
Selected ratios and other data
Number of common stock shares outstanding 76,171,580 76,168,388 75,531,258 76,171,580 75,531,258
Average outstanding shares - basic 76,170,734 76,126,251 75,530,591 76,148,493 75,369,366
Average outstanding shares - diluted 76,205,069 76,173,417 75,565,655 76,191,655 75,407,621
Return on average assets (annualized)1.34% 1.28% 1.39% 1.31% 1.37%
Return on average equity (annualized)10.99% 10.53% 11.05% 10.76% 10.89%
Efficiency ratio56.10% 56.53% 55.91% 56.31% 55.36%
Dividend payout ratio50.00% 52.63% 48.72% 51.28% 48.68%
Loan to deposit ratio76.92% 74.65% 74.11% 76.92% 74.11%
Number of full time equivalent employees 2,210 2,184 2,058 2,210 2,058
Number of locations 143 144 135 143 135
Number of ATMs 167 167 158 167 158

KALISPELL, Mont., July 21, 2016 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (Nasdaq:GBCI) reported net income of $30.5 million for the current quarter, an increase of $1.1 million, or 4 percent, from the $29.3 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.40 per share, an increase of $0.01, or 3 percent, from the prior year second quarter diluted earnings per share of $0.39. Included in the current quarter was $1.0 million of acquisition-related expenses, including conversion expenses, and $1.3 million 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 has completed the CCP conversion project for six of its thirteen bank divisions and is expecting to complete the project by year end. “It was another very solid quarter on a number of fronts,” said Mick Blodnick, President and Chief Executive Officer. “Our Banks provided a record quarter for earnings and organic loan production at a time when we are in the midst of the largest internal core data project we have ever undertaken. In addition, our core interest margin remained above 4 percent,” Blodnick said.

Net income for the six months ended June 30, 2016 was $59.1 million, an increase of $2.1 million, or 4 percent, from the $57.0 million of net income for the first six months of the prior year. Diluted earnings per share for the first half of 2016 was $0.78 per share, an increase of $0.02, or 3 percent, from the diluted earnings per share of $0.76 for the first six months of the prior year.

The acquisition of Treasure State Bank marks the Company’s 18th acquisition since 2000 and its sixth announced transaction in the past three years. As of December 31, 2015, Treasure State Bank had total assets of $71.8 million, gross loans of $53.2 million and total deposits of $57.7 million. The Company has received all regulatory approvals for the transaction. “We’re excited to add Treasure State Bank and a group of talented bankers to our Company,” said Blodnick. “This Bank will fit nicely with First Security Bank and we expect it to be an excellent strategic addition.”

Asset Summary

$ Change from
(Dollars in thousands)Jun 30,
2016
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Cash and cash equivalents$160,333 150,861 193,253 355,719 9,472 (32,920) (195,386)
Investment securities, available-for-sale2,487,955 2,604,625 2,610,760 2,361,830 (116,670) (122,805) 126,125
Investment securities, held-to-maturity680,574 691,663 702,072 593,314 (11,089) (21,498) 87,260
Total investment securities3,168,529 3,296,288 3,312,832 2,955,144 (127,759) (144,303) 213,385
Loans receivable
Residential real estate672,895 685,026 688,912 635,674 (12,131) (16,017) 37,221
Commercial real estate2,773,298 2,680,691 2,633,953 2,454,369 92,607 139,345 318,929
Other commercial1,258,227 1,172,956 1,099,564 1,074,905 85,271 158,663 183,322
Home equity431,659 423,895 420,901 410,708 7,764 10,758 20,951
Other consumer242,538 234,625 235,351 231,775 7,913 7,187 10,763
Loans receivable5,378,617 5,197,193 5,078,681 4,807,431 181,424 299,936 571,186
Allowance for loan and lease losses(132,386) (130,071) (129,697) (130,519) (2,315) (2,689) (1,867)
Loans receivable, net5,246,231 5,067,122 4,948,984 4,676,912 179,109 297,247 569,319
Other assets624,349 606,471 634,163 602,035 17,878 (9,814) 22,314
Total assets$9,199,442 9,120,742 9,089,232 8,589,810 78,700 110,210 609,632

Total investment securities of $3.169 billion at June 30, 2016 decreased $128 million, or 4 percent, during the current quarter. The decrease in the investment portfolio resulted from the Company redeploying the investment securities portfolio cash flow into the Company’s higher yielding loan portfolio. Investment securities represented 34 percent of total assets at June 30, 2016 compared to 36 percent of total assets at December 31, 2015 and 34 percent at June 30, 2015.

The Company experienced a 14 percent annualized loan growth rate during the current quarter. The loan portfolio increased $181 million, or 3 percent, during the current quarter. The loan category with the largest dollar increase was commercial real estate which increased $92.6 million, or 3 percent. The loan category with the largest percentage increase during the current quarter was other commercial loans which increased $85.3 million, or 7 percent. Included in other commercial loans are agriculture production, municipal, and other commercial and industrial loans, all of which increased during the current quarter. Excluding the acquisition of Cañon National Bank (“Cañon”) in October 2015, the loan portfolio increased $411 million, or 9 percent, since June 30, 2015 with $209 million and $167 million of the increase coming from growth in commercial real estate and other commercial loans, respectively. “For the second consecutive quarter we generated outstanding loan growth that exceeded expectations,” Blodnick said. “The growth was well distributed among all our Banks and gives us confidence that we will exceed our loan growth targets for 2016.”

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,
2016
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Allowance for loan and lease losses
Balance at beginning of period$129,697 129,697 129,753 129,753
Provision for loan losses568 568 2,284 1,047
Charge-offs(2,532) (1,163) (7,001) (2,598)
Recoveries4,653 969 4,661 2,317
Balance at end of period$132,386 130,071 129,697 130,519
Other real estate owned$24,370 22,085 26,815 26,686
Accruing loans 90 days or more past due6,194 4,615 2,131 618
Non-accrual loans45,017 53,523 51,133 56,918
Total non-performing assets 1$75,581 80,223 80,079 84,222
Non-performing assets as a percentage of subsidiary assets0.82% 0.88% 0.88% 0.98%
Allowance for loan and lease losses as a percentage of non-performing loans259% 224% 244% 227%
Allowance for loan and lease losses as a percentage of total loans2.46% 2.50% 2.55% 2.71%
Net (recoveries) charge-offs as a percentage of total loans(0.04)% % 0.05% 0.01%
Accruing loans 30-89 days past due$23,479 23,996 19,413 28,474
Accruing troubled debt restructurings$50,054 53,311 63,590 64,336
Non-accrual troubled debt restructurings$23,822 23,879 27,057 32,664
___________
1 As of June 30, 2016, non-performing assets have not been reduced by U.S. government guarantees of $2.3 million.

Non-performing assets at June 30, 2016 were $75.6 million, a decrease of $4.6 million, or 6 percent, during the current quarter and a decrease of $8.6 million, or 10 percent, from a year ago. Early stage delinquencies (accruing loans 30-89 days past due) of $23.4 million at June 30, 2016 decreased $517 thousand from the prior quarter.

The allowance loan and lease losses (“allowance”) as a percent of total loans outstanding at June 30, 2016 was 2.46 percent, a decrease of 9 basis points from 2.55 percent at December 31, 2015 which was driven by loan growth combined with stabilized credit quality. The allowance as a percent of total loans in the current quarter decreased 25 basis points from 2.71 percent at June 30, 2015 which was also the result of loan growth and stabilizing credit quality.

Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands)Provision
for Loan
Losses
Net
(Recoveries)
Charge-Offs
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
Second quarter 2016$ $(2,315) 2.46% 0.44% 0.82%
First quarter 2016568 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%

Net recoveries for the current quarter were $2.3 million compared to net charge-offs of $194 thousand for the prior quarter and net recoveries of $381 thousand from the same quarter last year. The net recoveries and charge-offs continue to trend in the right direction with a fair amount of volatility during the quarters. The Company was fortunate to recover a larger credit during the current quarter that it had been working towards a resolution for some time. There was no current quarter provision for loan losses, compared to $568 thousand in the prior quarter and $282 thousand in the prior year second 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)Jun 30,
2016
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Deposits
Non-interest bearing deposits$1,907,026 1,887,004 1,918,310 1,731,015 20,022 (11,284) 176,011
NOW and DDA accounts1,495,952 1,448,454 1,516,026 1,396,997 47,498 (20,074) 98,955
Savings accounts926,865 879,541 838,274 751,519 47,324 88,591 175,346
Money market deposit accounts1,403,028 1,411,970 1,382,028 1,335,625 (8,942) 21,000 67,403
Certificate accounts1,017,681 1,063,735 1,060,650 1,146,178 (46,054) (42,969) (128,497)
Core deposits, total6,750,552 6,690,704 6,715,288 6,361,334 59,848 35,264 389,218
Wholesale deposits338,264 325,490 229,720 197,323 12,774 108,544 140,941
Deposits, total7,088,816 7,016,194 6,945,008 6,558,657 72,622 143,808 530,159
Repurchase agreements414,327 445,960 423,414 408,935 (31,633) (9,087) 5,392
Federal Home Loan Bank advances328,832 313,969 394,131 329,470 14,863 (65,299) (638)
Other borrowed funds4,926 6,633 6,602 6,665 (1,707) (1,676) (1,739)
Subordinated debentures125,920 125,884 125,848 125,776 36 72 144
Other liabilities111,962 118,422 117,579 103,856 (6,460) (5,617) 8,106
Total liabilities$8,074,783 8,027,062 8,012,582 7,533,359 47,721 62,201 541,424

Non-interest bearing deposits of $1.907 billion at June 30, 2016, increased $20 million, or 1 percent, from the prior quarter which was driven by seasonal fluctuations and a strong inflow of new accounts. Excluding the Cañon acquisition, non-interest bearing deposits increased $86.9 million, or 5 percent, from June 30, 2015. Core interest bearing deposits of $4.844 billion at June 30, 2016, increased $39.8 million, or 1 percent, from the prior quarter. Excluding the Cañon acquisition, core interest bearing deposits at June 30, 2016 increased $65.0 million, or 1 percent, from June 30, 2015. Wholesale deposits (i.e., brokered deposits classified as NOW, DDA, money market deposit and certificate accounts) of $338 million at June 30, 2016 increased $109 million since December 31, 2015 and increased $141 million over the prior year second quarter. A majority of the increase was driven by a need to obtain wholesale deposits necessary for an interest rate swap.

Securities sold under agreements to repurchase (“repurchase agreements”) of $414 million at June 30, 2016 decreased $31.6 million, or 7 percent, from the prior quarter and increased $5.4 million, or 1 percent, from the prior year second quarter. Repurchase agreements fluctuated as certain customers had significant deposit cash flows. Federal Home Loan Bank (“FHLB”) advances of $329 million at June 30, 2016 increased $14.9 million, or 4 percent, during the current quarter to supplement the need for additional borrowings due to the loan growth in excess of deposit growth.

Stockholders’ Equity Summary

$ Change from
(Dollars in thousands, except per share data)Jun 30,
2016
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Common equity$1,104,246 1,088,359 1,074,661 1,051,011 15,887 29,585 53,235
Accumulated other comprehensive income20,413 5,321 1,989 5,440 15,092 18,424 14,973
Total stockholders’ equity1,124,659 1,093,680 1,076,650 1,056,451 30,979 48,009 68,208
Goodwill and core deposit intangible, net(153,608) (154,396) (155,193) (142,344) 788 1,585 (11,264)
Tangible stockholders’ equity$971,051 939,284 921,457 914,107 31,767 49,594 56,944
Stockholders’ equity to total assets12.23% 11.99% 11.85% 12.30%
Tangible stockholders’ equity to total tangible assets10.73% 10.48% 10.31% 10.82%
Book value per common share$14.76 14.36 14.15 13.99 0.40 0.61 0.77
Tangible book value per common share$12.75 12.33 12.11 12.10 0.42 0.64 0.65

Tangible stockholders’ equity of $971 million at June 30, 2016 increased $31.8 million, or 3 percent, from the prior quarter primarily from earnings retention and an increase in accumulated other comprehensive income. The increase in accumulated other comprehensive income was from an increase in unrealized gains on the available-for-sale investment securities portfolio driven by lower interest rates in the current quarter. Tangible stockholders’ equity increased $56.9 million, or 6 percent, from a year ago, the result of earnings retention, an increase in accumulated other comprehensive income and $15.2 million of Company stock issued in connection with the Cañon acquisition; such increases more than offset the increase in goodwill and other intangibles from the Cañon acquisition. At June 30, 2016, the tangible book value per common share was $12.75 an increase of $0.42 per share from $12.33 the prior quarter principally due to earnings retention and the increase in accumulated other comprehensive income. Tangible book value per common share for June 30, 2016, increased $0.65 per share from the prior year second quarter.

Cash Dividend
On June 29, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per share. The dividend was payable July 21, 2016 to shareholders of record July 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 June 30, 2016
Compared to March 31, 2016 and June 30, 2015

Income Summary

Three Months ended $ Change from
(Dollars in thousands)Jun 30,
2016
Mar 31,
2016
Jun 30,
2015
Mar 31,
2016
Jun 30,
2015
Net interest income
Interest income$86,069 84,381 78,617 1,688 7,452
Interest expense7,424 7,675 7,369 (251) 55
Total net interest income78,645 76,706 71,248 1,939 7,397
Non-interest income
Service charges and other fees15,772 14,681 15,062 1,091 710
Miscellaneous loan fees and charges1,163 1,021 1,142 142 21
Gain on sale of loans8,257 5,992 7,600 2,265 657
(Loss) gain on sale of investments(220) 108 (98) (328) (122)
Other income1,787 2,450 2,096 (663) (309)
Total non-interest income26,759 24,252 25,802 2,507 957
$105,404 100,958 97,050 4,446 8,354
Net interest margin (tax-equivalent)4.06% 4.01% 3.98%

Net Interest Income
In the current quarter, interest income of $86.1 million increased $1.7 million, or 2 percent from the prior quarter and was primarily driven by the increase in interest income from commercial loans. Commercial loan income increased $2.5 million, or 6 percent, during the current quarter with $759 thousand attributable to interest income recovered from loans previously placed on non-accrual. Current quarter interest income increased $7.5 million, or 9 percent, over the prior year second quarter because of increases in interest income on commercial loans which increased $6.3 million, or 15 percent, and increases in investment income which increased $1.1 million, or 5 percent.

The current quarter interest expense of $7.4 million decreased $251 thousand, or 3 percent, from the prior quarter and increased $55 thousand from the prior year second quarter. The total cost of funding (including non-interest bearing deposits) for the current quarter was 38 basis points compared to 39 basis points for the prior quarter and 40 basis points in the prior year second quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.06 percent compared to 4.01 percent in the prior quarter. During the current quarter, the earning asset yield increased by 5 basis points and was primarily the result of a 4 basis points increase from the recovery of interest on loans previously placed on non-accrual. The Company’s current quarter net interest margin increased 8 basis points from the prior year second quarter net interest margin of 3.98 percent. The increase was driven by the shift in earning assets from the lower yielding investment securities to higher yielding loans, the current quarter recovery of interest on loans, and lower funding cost. “Excluding the impact of the interest recovery, the Company experienced a stable net interest margin of 4.02 percent for the current quarter. The shift in earning assets from investment securities to the the higher yielding loan portfolio continues to benefit the Company,” said Ron Copher, Chief Financial Officer.

Non-interest Income
Non-interest income for the current quarter totaled $26.8 million, an increase of $2.5 million, or 10 percent, from the prior quarter and an increase of $957 thousand, or 4 percent, over the same quarter last year. Service fee income of $15.8 million, increased $1.1 million, or 7 percent, from the prior quarter as a result of seasonal activity, an increase in the number of deposit accounts, and annual vendor incentives. Service fee income for the current quarter increased by $710 thousand, or 5 percent, from the prior year second quarter because of the increased number of deposit accounts. Gain on sale of residential loans for the current quarter increased $2.3 million, or 38 percent, from the prior quarter due to seasonal activity and the low interest rate environment. Gain on sale of residential loans for the current quarter increased $657 thousand, or 9 percent, from the prior year second quarter as the Company benefited from its focus on residential lending and a beneficial interest rate environment for mortgage loans. Included in other income was operating revenue of $40 thousand from other real estate owned (“OREO”) and a gain of $142 thousand from the sale of OREO, a combined total of $182 thousand for the current quarter compared to $214 thousand for the prior quarter and $323 thousand for the prior year second quarter.

Non-interest Expense Summary

Three Months ended $ Change from
(Dollars in thousands)Jun 30,
2016
Mar 31,
2016
Jun 30,
2015
Mar 31,
2016
Jun 30,
2015
Compensation and employee benefits$37,560 36,941 32,729 619 4,831
Occupancy and equipment6,443 6,676 6,432 (233) 11
Advertising and promotions2,085 2,125 2,240 (40) (155)
Data processing3,938 3,373 2,971 565 967
Other real estate owned214 390 1,377 (176) (1,163)
Regulatory assessments and insurance1,066 1,508 1,006 (442) 60
Core deposit intangibles amortization788 797 755 (9) 33
Other expenses12,367 10,546 12,435 1,821 (68)
Total non-interest expense$64,461 62,356 59,945 2,105 4,516

Compensation and employee benefits for the current quarter increased by $619 thousand, or 2 percent, from the prior quarter as a result of seasonal fluctuations. Compensation and employee benefits for the current quarter increased by $4.8 million, or 15 percent, from the prior year second quarter due to the increased number of employees, including increases from the Cañon acquisition, and annual salary increases. Current quarter occupancy and equipment expense decreased $233 thousand, or 3 percent, from the prior quarter and increased $11 thousand, or 17 basis points, from the prior year second quarter. The current quarter data processing expense increased $565 thousand, or 17 percent, from the prior quarter and increased $967 thousand from the prior year second quarter; such increases primarily from expenses associated with CCP. The current quarter OREO expense of $214 thousand included $145 thousand of operating expense, $24 thousand of fair value write-downs, and $45 thousand of loss from the sales of OREO. Current quarter other expenses of $12.4 million increased $1.8 million, or 17 percent, from the prior quarter and was driven by increases from acquisition-related expenses, including conversion expenses, and costs associated with CCP. Current quarter other expenses remained stable in total compared to the prior year second quarter, however several areas experienced increases or decreases related to acquisitions, CCP, and expenses connected with equity investments in New Market Tax Credit (“NMTC”) projects.

Efficiency Ratio
The current quarter efficiency ratio was 56.10 percent, a 43 basis points reduction from the prior quarter efficiency ratio of 56.53 percent which was driven by increases in interest income on commercial loans, service charges and gain on sale of residential loans. The current quarter efficiency ratio of 56.10 percent compared to 55.91 percent in the prior year second quarter. The 19 basis points increase in the efficiency ratio was the result of additional costs associated with CCP, which was greater than the benefits experienced in net interest income and non-interest income.

Operating Results for Six Months ended June 30, 2016
Compared to June 30, 2015

Income Summary

Six Months ended $ Change % Change
(Dollars in thousands)June 30,
2016
June 30,
2015
Net interest income
Interest income$170,450 $156,103 $14,347 9%
Interest expense15,099 14,751 348 2%
Total net interest income155,351 141,352 13,999 10%
Non-interest income
Service charges and other fees30,453 28,511 1,942 7%
Miscellaneous loan fees and charges2,184 2,299 (115) (5)%
Gain on sale of loans14,249 13,030 1,219 9%
(Loss) gain on sale of investments(112) (93) (19) 20%
Other income4,237 4,748 (511) (11)%
Total non-interest income51,011 48,495 2,516 5%
$206,362 $189,847 $16,515 9%
Net interest margin (tax-equivalent)4.04% 4.00%

Net Interest Income
Net interest income for the first six months of the current year was $155.4 million, an increase of $14.0 million, or 10 percent, over the same period last year. Interest income for the first six months of the current year increased $14.3 million, or 9 percent, from the prior year first six months and was principally due to an $11.8 million increase in income from commercial loans. Additional increases included $2.0 million in interest income from investment securities and $706 thousand in interest income from residential loans.

Interest expense of $15.1 million for the first half the current year increased $348 thousand, or 2 percent, over the prior year first half. Deposit interest expense for the first six months of the current year increased $1.1 million, or 13 percent, from the prior year first six months and was 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. FHLB interest expense decreased $1.1 million, or 25 percent, which resulted from long-term advances maturing and being replaced by lower rate short-term advances. The total funding cost (including non-interest bearing deposits) for the first six months of 2016 was 39 basis points compared to 41 basis points for the first six months of 2015.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first six months of 2016 was 4.04 percent, a 4 basis point increase from the net interest margin of 4.00 percent for the first six months of 2015. The increase in the margin was primarily attributable to a shift in earning assets to higher yielding loans combined with a continued increase in low cost deposits.

Non-interest Income
Non-interest income of $51.0 million for the first half of 2016 increased $2.5 million, or 5 percent, over the same period last year. Service charges and other fees of $30.5 million for the first six months of 2016 increased $1.9 million, or 7 percent, from the same period last year as a result of an increased number of deposit accounts and increases from recent acquisitions. The gain of $14.2 million on the sale of residential loans for the first half of 2016 increased $1.2 million, or 9 percent, from the first half of 2015. Included in other income was operating revenue of $50 thousand from OREO and gains of $345 thousand from the sales of OREO, which totaled $395 thousand for the first half of 2016 compared to $740 thousand for the same period in the prior year.

Non-interest Expense Summary

Six Months ended $ Change % Change
(Dollars in thousands)June 30,
2016
June 30,
2015
Compensation and employee benefits$74,501 $64,973 $9,528 15%
Occupancy and equipment13,119 12,492 627 5%
Advertising and promotions4,210 4,167 43 1%
Data processing7,311 5,522 1,789 32%
Other real estate owned604 2,135 (1,531) (72)%
Regulatory assessments and insurance2,574 2,311 263 11%
Core deposit intangible amortization1,585 1,486 99 7%
Other expenses22,913 22,356 557 2%
Total non-interest expense$126,817 $115,442 $11,375 10%

Compensation and employee benefits for the first six months of 2016 increased $9.5 million, or 15 percent, from the same period last year due to expenses related to CCP, the increased number of employees including from the acquired banks, and annual salary increases. Occupancy and equipment expense of $13.1 million for the first half of 2016 increased $627 thousand, or 5 percent. Outsourced data processing expense increased $1.8 million, or 32 percent, from the prior year first six months as a result of additional costs from CCP. OREO expense of $604 thousand in the first six months of 2016 decreased $1.5 million, or 72 percent, from the first six months of the prior year. OREO expense for the first six months of 2016 included $281 thousand of operating expenses, $79 thousand of fair value write-downs, and $244 thousand of loss from the sales of OREO.

Provision for Loan Losses
The provision for loan losses was $568 thousand for the first six months of 2016, a decrease of $479 thousand, or 46 percent, from the same period in the prior year. Net recovery of loans during the first six months of 2016 was $2.1 million compared to net charge-offs of $281 thousand from the first six months of 2015.

Efficiency Ratio
The efficiency ratio was 56.31 percent for the first six months of 2016 and 55.36 percent for the first six months of 2015. Although there were increases in both net interest income and non-interest income, such increases were outpaced by the increases in CCP expenses and compensation expenses which contributed to the higher efficiency ratio in 2016.

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 Chief Executive Officer, the senior management team and the Presidents of Glacier 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, July 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 41356911. To participate on the webcast, log on to: http://edge.media-server.com/m/p/grb9rbne. 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 41356911 until August 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)June 30,
2016
March 31,
2016
December 31,
2015
June 30,
2015
Assets
Cash on hand and in banks$147,748 104,222 117,137 120,783
Federal funds sold 1,400 6,080
Interest bearing cash deposits12,585 45,239 70,036 234,936
Cash and cash equivalents160,333 150,861 193,253 355,719
Investment securities, available-for-sale2,487,955 2,604,625 2,610,760 2,361,830
Investment securities, held-to-maturity680,574 691,663 702,072 593,314
Total investment securities3,168,529 3,296,288 3,312,832 2,955,144
Loans held for sale74,140 40,484 56,514 53,201
Loans receivable5,378,617 5,197,193 5,078,681 4,807,431
Allowance for loan and lease losses(132,386) (130,071) (129,697) (130,519)
Loans receivable, net5,246,231 5,067,122 4,948,984 4,676,912
Premises and equipment, net177,911 192,951 194,030 186,858
Other real estate owned24,370 22,085 26,815 26,686
Accrued interest receivable47,554 47,363 44,524 44,563
Deferred tax asset46,488 55,773 58,475 56,571
Core deposit intangible, net12,970 13,758 14,555 11,501
Goodwill140,638 140,638 140,638 130,843
Non-marketable equity securities24,791 24,199 27,495 24,914
Other assets75,487 69,220 71,117 66,898
Total assets$9,199,442 9,120,742 9,089,232 8,589,810
Liabilities
Non-interest bearing deposits$1,907,026 1,887,004 1,918,310 1,731,015
Interest bearing deposits5,181,790 5,129,190 5,026,698 4,827,642
Securities sold under agreements to repurchase414,327 445,960 423,414 408,935
FHLB advances328,832 313,969 394,131 329,470
Other borrowed funds4,926 6,633 6,602 6,665
Subordinated debentures125,920 125,884 125,848 125,776
Accrued interest payable3,486 3,608 3,517 3,790
Other liabilities108,476 114,814 114,062 100,066
Total liabilities8,074,783 8,027,062 8,012,582 7,533,359
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 762 761 755
Paid-in capital737,379 736,664 736,368 720,073
Retained earnings - substantially restricted366,105 350,933 337,532 330,183
Accumulated other comprehensive income20,413 5,321 1,989 5,440
Total stockholders’ equity1,124,659 1,093,680 1,076,650 1,056,451
Total liabilities and stockholders’ equity$9,199,442 9,120,742 9,089,232 8,589,810


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
Three Months ended Six Months ended
(Dollars in thousands, except per share data)June 30,
2016
March 31,
2016
June 30,
2015
June 30,
2016
June 30,
2015
Interest Income
Investment securities$23,037 23,883 21,959 46,920 44,918
Residential real estate loans8,124 8,285 7,942 16,409 15,703
Commercial loans47,002 44,503 40,698 91,505 79,720
Consumer and other loans7,906 7,710 8,018 15,616 15,762
Total interest income86,069 84,381 78,617 170,450 156,103
Interest Expense
Deposits4,560 4,795 4,112 9,355 8,259
Securities sold under agreements to repurchase275 318 232 593 473
Federal Home Loan Bank advances1,665 1,652 2,217 3,317 4,412
Federal funds purchased and other borrowed funds14 18 15 32 42
Subordinated debentures910 892 793 1,802 1,565
Total interest expense7,424 7,675 7,369 15,099 14,751
Net Interest Income78,645 76,706 71,248 155,351 141,352
Provision for loan losses 568 282 568 1,047
Net interest income after provision for loan losses78,645 76,138 70,966 154,783 140,305
Non-Interest Income
Service charges and other fees15,772 14,681 15,062 30,453 28,511
Miscellaneous loan fees and charges1,163 1,021 1,142 2,184 2,299
Gain on sale of loans8,257 5,992 7,600 14,249 13,030
(Loss) gain on sale of investments(220) 108 (98) (112) (93)
Other income1,787 2,450 2,096 4,237 4,748
Total non-interest income26,759 24,252 25,802 51,011 48,495
Non-Interest Expense
Compensation and employee benefits37,560 36,941 32,729 74,501 64,973
Occupancy and equipment6,443 6,676 6,432 13,119 12,492
Advertising and promotions2,085 2,125 2,240 4,210 4,167
Data processing3,938 3,373 2,971 7,311 5,522
Other real estate owned214 390 1,377 604 2,135
Regulatory assessments and insurance1,066 1,508 1,006 2,574 2,311
Core deposit intangibles amortization788 797 755 1,585 1,486
Other expenses12,367 10,546 12,435 22,913 22,356
Total non-interest expense64,461 62,356 59,945 126,817 115,442
Income Before Income Taxes40,943 38,034 36,823 78,977 73,358
Federal and state income tax expense10,492 9,352 7,488 19,844 16,353
Net Income$30,451 28,682 29,335 59,133 57,005


Glacier Bancorp, Inc.
Average Balance Sheets
Three Months ended
June 30, 2016 June 30, 2015
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$731,432 $8,124 4.44% $688,214 $7,942 4.62%
Commercial loans 13,902,007 47,956 4.94% 3,439,432 41,343 4.82%
Consumer and other loans666,212 7,906 4.77% 627,847 8,018 5.12%
Total loans 25,299,651 63,986 4.86% 4,755,493 57,303 4.83%
Tax-exempt investment securities 31,348,520 19,274 5.72% 1,315,849 19,022 5.78%
Taxable investment securities 41,915,740 10,686 2.23% 1,848,222 9,655 2.09%
Total earning assets8,563,911 93,946 4.41% 7,919,564 85,980 4.35%
Goodwill and intangibles153,981 142,781
Non-earning assets390,457 391,562
Total assets$9,108,349 $8,453,907
Liabilities
Non-interest bearing deposits$1,853,649 $ % $1,693,414 $ %
NOW and DDA accounts1,494,950 271 0.07% 1,343,474 258 0.08%
Savings accounts901,367 108 0.05% 744,845 84 0.05%
Money market deposit accounts1,398,230 540 0.16% 1,336,889 513 0.15%
Certificate accounts1,033,866 1,558 0.61% 1,153,143 1,784 0.62%
Wholesale deposits 5326,364 2,083 2.57% 215,138 1,473 2.75%
FHLB advances392,835 1,665 1.68% 315,104 2,217 2.78%
Repurchase agreements and other borrowed funds498,643 1,199 0.97% 497,638 1,040 0.84%
Total funding liabilities7,899,904 7,424 0.38% 7,299,645 7,369 0.40%
Other liabilities94,220 89,751
Total liabilities7,994,124 7,389,396
Stockholders’ Equity
Common stock762 755
Paid-in capital736,876 719,730
Retained earnings365,385 329,781
Accumulated other comprehensive income11,202 14,245
Total stockholders’ equity1,114,225 1,064,511
Total liabilities and stockholders’ equity$9,108,349 $8,453,907
Net interest income (tax-equivalent) $86,522 $78,611
Net interest spread (tax-equivalent) 4.03% 3.95%
Net interest margin (tax-equivalent) 4.06% 3.98%


_______________
1 Includes tax effect of $954 thousand and $645 thousand on tax-exempt municipal loan and lease income for the three months ended June 30, 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 $6.4 million on tax-exempt investment securities income for the three months ended June 30, 2016 and 2015, respectively.
4 Includes tax effect of $352 thousand and $362 thousand on federal income tax credits for the three months ended June 30, 2016 and 2015, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.


Glacier Bancorp, Inc.
Average Balance Sheets (continued)
Six Months ended
June 30, 2016 June 30, 2015
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$728,851 $16,409 4.50% $670,058 $15,703 4.69%
Commercial loans 13,825,968 93,291 4.90% 3,361,582 80,948 4.86%
Consumer and other loans660,025 15,616 4.76% 618,900 15,762 5.14%
Total loans 25,214,844 125,316 4.83% 4,650,540 112,413 4.87%
Tax-exempt investment securities 31,350,601 38,656 5.72% 1,309,049 37,515 5.73%
Taxable investment securities 41,957,370 22,148 2.26% 1,876,372 20,409 2.18%
Total earning assets8,522,815 186,120 4.39% 7,835,961 170,337 4.38%
Goodwill and intangibles154,385 141,759
Non-earning assets390,675 385,605
Total assets$9,067,875 $8,363,325
Liabilities
Non-interest bearing deposits$1,858,519 $ % $1,655,981 $ %
NOW and DDA accounts1,480,065 564 0.08% 1,327,491 526 0.08%
Savings accounts882,565 212 0.05% 729,456 173 0.05%
Money market deposit accounts1,402,474 1,092 0.16% 1,320,538 1,030 0.16%
Certificate accounts1,052,460 3,123 0.60% 1,159,279 3,627 0.63%
Wholesale deposits 5330,745 4,364 2.65% 217,746 2,903 2.69%
FHLB advances350,438 3,317 1.87% 307,581 4,412 2.85%
Repurchase agreements and other borrowed funds510,104 2,427 0.96% 500,710 2,080 0.84%
Total funding liabilities7,867,370 15,099 0.39% 7,218,782 14,751 0.41%
Other liabilities95,461 88,952
Total liabilities7,962,831 7,307,734
Stockholders’ Equity
Common stock761 754
Paid-in capital736,637 715,949
Retained earnings358,461 321,936
Accumulated other comprehensive income9,185 16,952
Total stockholders’ equity1,105,044 1,055,591
Total liabilities and stockholders’ equity$9,067,875 $8,363,325
Net interest income (tax-equivalent) $171,021 $155,586
Net interest spread (tax-equivalent) 4.00% 3.97%
Net interest margin (tax-equivalent) 4.04% 4.00%


__________
1 Includes tax effect of $1.8 million and $1.2 million on tax-exempt municipal loan and lease income for the six months ended June 30, 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 $13.2 million and $12.3 million on tax-exempt investment securities income for the six months ended June 30, 2016 and 2015, respectively.
4 Includes tax effect of $704 thousand and $724 thousand on federal income tax credits for the six months ended June 30, 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)Jun 30,
2016
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Custom and owner occupied construction$78,525 $68,893 $75,094 $56,460 14% 5% 39%
Pre-sold and spec construction59,530 59,220 50,288 45,063 1% 18% 32%
Total residential construction138,055 128,113 125,382 101,523 8% 10% 36%
Land development61,803 59,539 62,356 78,059 4% (1)% (21)%
Consumer land or lots95,247 93,922 97,270 98,365 1% (2)% (3)%
Unimproved land70,396 73,791 73,844 76,726 (5)% (5)% (8)%
Developed lots for operative builders13,845 12,973 12,336 13,673 7% 12% 1%
Commercial lots26,084 23,558 22,035 20,047 11% 18% 30%
Other construction206,343 166,378 156,784 126,966 24% 32% 63%
Total land, lot, and other construction473,718 430,161 424,625 413,836 10% 12% 14%
Owner occupied927,237 944,411 938,625 874,651 (2)% (1)% 6%
Non-owner occupied835,272 806,856 774,192 718,024 4% 8% 16%
Total commercial real estate1,762,509 1,751,267 1,712,817 1,592,675 1% 3% 11%
Commercial and industrial705,011 664,855 649,553 635,259 6% 9% 11%
Agriculture421,097 372,616 367,339 374,258 13% 15% 13%
1st lien867,918 841,848 856,193 802,152 3% 1% 8%
Junior lien64,248 63,162 65,383 67,019 2% (2)% (4)%
Total 1-4 family932,166 905,010 921,576 869,171 3% 1% 7%
Multifamily residential198,583 197,267 201,542 195,674 1% (1)% 1%
Home equity lines of credit388,939 379,866 372,039 356,077 2% 5% 9%
Other consumer156,568 150,047 150,469 147,427 4% 4% 6%
Total consumer545,507 529,913 522,508 503,504 3% 4% 8%
Other276,111 258,475 209,853 174,732 7% 32% 58%
Total loans receivable, including loans held for sale5,452,757 5,237,677 5,135,195 4,860,632 4% 6% 12%
Less loans held for sale 1(74,140) (40,484) (56,514) (53,201) 83% 31% 39%
Total loans receivable$5,378,617 $5,197,193 $5,078,681 $4,807,431 3% 6% 12%
__________
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)Jun 30,
2016
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Jun 30,
2016
Jun 30,
2016
Jun 30,
2016
Custom and owner occupied construction$390 995 1,016 1,079 390
Pre-sold and spec construction 18
Total residential construction390 995 1,016 1,097 390
Land development12,830 18,190 17,582 20,405 2,128 10,702
Consumer land or lots1,656 1,751 2,250 2,647 823 833
Unimproved land12,147 11,651 12,328 12,580 8,109 4,038
Developed lots for operative builders176 457 488 848 1 175
Commercial lots1,979 1,333 1,521 2,050 217 1,762
Other construction 4,236 4,244
Total land, lot and other construction28,788 33,382 38,405 42,774 11,278 17,510
Owner occupied10,503 12,130 10,952 13,057 8,620 1,883
Non-owner occupied4,055 4,354 3,446 3,179 3,378 677
Total commercial real estate14,558 16,484 14,398 16,236 11,998 2,560
Commercial and industrial7,123 6,046 3,993 5,805 5,789 1,313 21
Agriculture3,979 3,220 3,281 2,769 2,544 1,435
1st lien11,332 11,041 10,691 9,867 6,171 1,261 3,900
Junior lien1,489 1,111 668 739 1,349 140
Total 1-4 family12,821 12,152 11,359 10,606 7,520 1,261 4,040
Multifamily residential432 432 113 432
Home equity lines of credit5,413 5,432 5,486 4,742 4,898 382 133
Other consumer275 280 228 164 168 1 106
Total consumer5,688 5,712 5,714 4,906 5,066 383 239
Other1,802 1,800 1,800 29 1,802
Total$75,581 80,223 80,079 84,222 45,017 6,194 24,370


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,
2016
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Custom and owner occupied construction$375 $ $462 $ n/m (19)% n/m
Pre-sold and spec construction304 304 181 % 68% n/m
Total residential construction679 304 643 123% 6% n/m
Land development37 198 447 (81)% (92)% n/m
Consumer land or lots676 796 166 158 (15)% 307% 328%
Unimproved land879 1,284 774 755 (32)% 14% 16%
Developed lots for operative builders166 n/m n/m n/m
Commercial lots 66 n/m n/m (100)%
Other construction 337 n/m (100)% n/m
Total land, lot and other construction1,758 2,278 1,724 979 (23)% 2% 80%
Owner occupied2,975 4,552 2,760 4,727 (35)% 8% (37)%
Non-owner occupied5,364 1,466 923 8,257 266% 481% (35)%
Total commercial real estate8,339 6,018 3,683 12,984 39% 126% (36)%
Commercial and industrial4,956 4,907 1,968 6,760 1% 152% (27)%
Agriculture804 659 1,014 353 22% (21)% 128%
1st lien2,667 5,896 6,272 2,891 (55)% (57)% (8)%
Junior lien1,251 759 1,077 335 65% 16% 273%
Total 1-4 family3,918 6,655 7,349 3,226 (41)% (47)% 21%
Multifamily Residential 662 671 n/m (100)% (100)%
Home equity lines of credit2,253 2,528 1,046 2,464 (11)% 115% (9)%
Other consumer736 607 1,227 996 21% (40)% (26)%
Total consumer2,989 3,135 2,273 3,460 (5)% 32% (14)%
Other36 40 97 41 (10)% (63)% (12)%
Total$23,479 $23,996 $19,413 $28,474 (2)% 21% (18)%
___________
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,
2016
Mar 31,
2016
Dec 31,
2015
Jun 30,
2015
Jun 30,
2016
Jun 30,
2016
Pre-sold and spec construction$(37) (28) (53) (23) 37
Land development(2,342) (100) (288) (807) 27 2,369
Consumer land or lots(351) (240) 66 (77) 25 376
Unimproved land(46) (34) (325) (86) 46
Developed lots for operative builders(54) (12) (85) (98) 54
Commercial lots21 23 (26) (3) 24 3
Other construction (1) (1)
Total land, lot and other construction(2,772) (363) (659) (1,072) 76 2,848
Owner occupied(51) (27) 247 271 8 59
Non-owner occupied(3) (1) 93 109 3
Total commercial real estate(54) (28) 340 380 8 62
Commercial and industrial(112) 69 1,389 1,007 590 702
Agriculture(1) (1) 50 (7) 1
1st lien245 47 834 (49) 315 70
Junior lien(56) (15) (125) (129) 68 124
Total 1-4 family189 32 709 (178) 383 194
Multifamily residential229 229 (318) (29) 229
Home equity lines of credit(25) 179 740 206 145 170
Other consumer149 95 143 (3) 255 106
Total consumer124 274 883 203 400 276
Other313 10 (1) 846 533
Total$(2,121) 194 2,340 281 2,532 4,653

Visit our website at www.glacierbancorp.com

CONTACT: Michael J. Blodnick (406) 751-4701 Randy Chesler (406) 751-4722 Ron J. Copher (406) 751-7706

Source:Glacier Bancorp, Inc.