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

3rd Quarter 2016 Highlights:

  • Record earnings of $31.0 million for the current quarter, an increase $1.4 million, or 5 percent, over the prior year third quarter net income of $29.6 million.
  • Current quarter diluted earnings per share of $0.40, an increase of 3 percent from the prior year third quarter diluted earnings per share of $0.39.
  • Organic loan growth of $165 million, or 12 percent annualized for the current quarter.
  • Net interest margin of 4.00 percent as a percentage of earning assets, on a tax equivalent basis, for the current quarter compared to 3.96 percent in the prior year third quarter.
  • Dividend declared of $0.20 per share, an increase of $0.01 per share, or 5 percent, over the prior year third quarter. The dividend was the 126th consecutive quarterly dividend declared by the Company.
  • The Company successfully completed the fourth phase of the consolidation of its bank divisions’ core database systems into our new “Gold Bank” core database system.
  • The Company completed the acquisition of Treasure State Bank based in Missoula, Montana.

Year-to-Date 2016 Highlights:

  • Net income of $90.1 million for the first nine months of 2016, an increase of 4 percent over $86.6 million for the same period in the prior year.
  • Diluted earnings per share of $1.18, an increase of 3 percent from the first nine months of the prior year diluted earnings per share of $1.15.
  • Organic loan growth of $465 million, or 12 percent annualized for the first nine months of the current year.
  • Net interest margin of 4.02 percent as a percentage of earning assets, on a tax equivalent basis, for the first nine months of the current year compared to 3.99 percent for the same period last year.

Financial Highlights

At or for the Three Months ended At or for the Nine Months
ended
(Dollars in thousands, except per share and market data) Sep 30,
2016
Jun 30,
2016
Mar 31,
2016
Sep 30,
2015
Sep 30,
2016
Sep 30,
2015
Operating results
Net income $30,957 30,451 28,682 29,614 90,090 86,619
Basic earnings per share $0.40 0.40 0.38 0.39 1.18 1.15
Diluted earnings per share $0.40 0.40 0.38 0.39 1.18 1.15
Dividends declared per share $0.20 0.20 0.20 0.19 0.60 0.56
Market value per share
Closing $28.52 26.58 25.42 26.39 28.52 26.39
High $29.99 27.68 26.34 29.88 29.99 30.08
Low $25.49 24.31 22.19 24.33 22.19 22.27
Selected ratios and other data
Number of common stock shares outstanding 76,525,402 76,171,580 76,168,388 75,532,082 76,525,402 75,532,082
Average outstanding shares - basic 76,288,640 76,170,734 76,126,251 75,531,923 76,195,550 75,424,147
Average outstanding shares - diluted 76,350,873 76,205,069 76,173,417 75,586,453 76,247,051 75,469,355
Return on average assets (annualized) 1.34% 1.34% 1.28% 1.36% 1.32% 1.37%
Return on average equity (annualized) 10.80% 10.99% 10.53% 10.93% 10.77% 10.90%
Efficiency ratio 55.84% 56.10% 56.53% 54.32% 56.15% 55.01%
Dividend payout ratio 50.00% 50.00% 52.63% 48.72% 50.85% 48.70%
Loan to deposit ratio 77.53% 76.92% 74.65% 73.68% 77.53% 73.68%
Number of full time equivalent employees 2,207 2,210 2,184 2,040 2,207 2,040
Number of locations 142 143 144 133 142 133
Number of ATMs 166 167 167 158 166 158

KALISPELL, Mont., Oct. 20, 2016 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (Nasdaq:GBCI) reported net income of $31.0 million for the current quarter, an increase of $1.4 million, or 5 percent, from the $29.6 million of net income for the prior year third 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 third quarter diluted earnings per share of $0.39. Included in the current quarter was $228 thousand of acquisition-related expenses and $1.4 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. As of September 30, 2016, the Company had completed the CCP conversion project for ten of its thirteen bank divisions. “We again delivered a very good quarter as we reported record earnings, excellent organic loan growth, and a 4 percent net interest margin,” said Mick Blodnick, President and Chief Executive Officer. “In addition, we are in the final stage of our two year core consolidation project and will have all our Banks, including Treasure State Bank on our new ‘Gold Bank’ platform by the end of October,” Blodnick said.

Net income for the nine months ended September 30, 2016 was $90.1 million, an increase of $3.5 million, or 4 percent, from the $86.6 million of net income for the first nine months of the prior year. Diluted earnings per share for the first nine months of 2016 was $1.18 per share, an increase of $0.03, or 3 percent, from the diluted earnings per share of $1.15 for the same period in the prior year.

On August 31, 2016, the Company completed the acquisition of Treasure State Bank (“TSB”) based in Missoula, Montana which marks the Company’s 18th acquisition since 2000 and its sixth announced transaction in the past three years.

The Company’s results of operations and financial condition include the acquisition of TSB from the acquisition date and the following table provides information on the fair value of selected classifications of assets and liabilities acquired:

(Dollars in thousands) August 31,
2016
Total assets $76,165
Loans receivable 51,875
Non-interest bearing deposits 13,005
Interest bearing deposits 45,359
Federal Home Loan Bank advances 3,260

Asset Summary

$ Change from
(Dollars in thousands) Sep 30,
2016
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Cash and cash equivalents $251,413 160,333 193,253 242,835 91,080 58,160 8,578
Investment securities, available-for-sale 2,292,079 2,487,955 2,610,760 2,530,994 (195,876) (318,681) (238,915)
Investment securities, held-to-maturity 679,707 680,574 702,072 651,822 (867) (22,365) 27,885
Total investment securities 2,971,786 3,168,529 3,312,832 3,182,816 (196,743) (341,046) (211,030)
Loans receivable
Residential real estate 696,817 672,895 688,912 644,694 23,922 7,905 52,123
Commercial real estate 2,919,415 2,773,298 2,633,953 2,500,952 146,117 285,462 418,463
Other commercial 1,303,241 1,258,227 1,099,564 1,080,715 45,014 203,677 222,526
Home equity 435,935 431,659 420,901 412,256 4,276 15,034 23,679
Other consumer 240,554 242,538 235,351 237,802 (1,984) 5,203 2,752
Loans receivable 5,595,962 5,378,617 5,078,681 4,876,419 217,345 517,281 719,543
Allowance for loan and lease losses (132,534) (132,386) (129,697) (130,768) (148) (2,837) (1,766)
Loans receivable, net 5,463,428 5,246,231 4,948,984 4,745,651 217,197 514,444 717,777
Other assets 630,248 624,349 634,163 592,997 5,899 (3,915) 37,251
Total assets $9,316,875 9,199,442 9,089,232 8,764,299 117,433 227,643 552,576

Total investment securities of $2.972 billion at September 30, 2016 decreased $197 million, or 6 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 32 percent of total assets at September 30, 2016 compared to 36 percent of total assets at December 31, 2015 and 36 percent at September 30, 2015.

Excluding the acquisition of TSB, the loan portfolio grew $165 million, or 12 percent annualized, during the current quarter. Excluding the acquisition, the loan category with the largest increase was commercial real estate which increased $121 million, or 4 percent. Excluding the TSB acquisition and the acquisition of Cañon National Bank (“Cañon”) in October 2015, the loan portfolio increased $508 million, or 10 percent, since September 30, 2015 with $283 million and $198 million of the increase coming from growth in commercial real estate and other commercial loans, respectively. “Loan growth in the third quarter continued at a solid pace led by increases in commercial construction and commercial real estate loans,” Blodnick said. “During the quarter we continued to add to our residential construction portfolio something we've been working hard at the past couple of years. We were also pleased that with the exception of commercial and industrial loans all other loan categories increased this quarter.”

Credit Quality Summary

(Dollars in thousands) At or for the
Nine Months
ended
Sep 30,
2016
At or for the
Six Months
ended
Jun 30,
2016
At or for the
Year ended
Dec 31,
2015
At or for the
Nine Months
ended
Sep 30,
2015
Allowance for loan and lease losses
Balance at beginning of period $129,697 129,697 129,753 129,753
Provision for loan losses 1,194 568 2,284 1,873
Charge-offs (5,332) (2,532) (7,001) (4,671)
Recoveries 6,975 4,653 4,661 3,813
Balance at end of period $132,534 132,386 129,697 130,768
Other real estate owned $22,662 24,370 26,815 26,609
Accruing loans 90 days or more past due 3,299 6,194 2,131 3,784
Non-accrual loans 52,280 45,017 51,133 54,632
Total non-performing assets 1 $78,241 75,581 80,079 85,025
Non-performing assets as a percentage of subsidiary assets 0.84% 0.82% 0.88% 0.97%
Allowance for loan and lease losses as a percentage of non-performing loans 238% 259% 244% 224%
Allowance for loan and lease losses as a percentage of total loans 2.37% 2.46% 2.55% 2.68%
Net (recoveries) charge-offs as a percentage of total loans (0.03)% (0.04)% 0.05% 0.02%
Accruing loans 30-89 days past due $27,384 23,479 19,413 17,822
Accruing troubled debt restructurings $52,578 50,054 63,590 63,638
Non-accrual troubled debt restructurings $23,427 23,822 27,057 27,442
__________
1 As of September 30, 2016, non-performing assets have not been reduced by U.S. government guarantees of $1.5 million.

Non-performing assets at September 30, 2016 were $78.2 million, an increase of $2.7 million, or 4 percent, during the current quarter and a decrease of $6.8 million, or 8 percent, from a year ago. Early stage delinquencies (accruing loans 30-89 days past due) of $27.4 million at September 30, 2016 increased $3.9 million from the prior quarter.

The allowance loan and lease losses (“allowance”) as a percent of total loans outstanding at September 30, 2016 was 2.37 percent, a decrease of 18 basis points from 2.55 percent at December 31, 2015 and a decrease of 31 basis points from 2.68 percent at September 30, 2015 which was driven by loan growth combined with stabilized credit quality.

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
Third quarter 2016 $626 $478 2.37% 0.49% 0.84%
Second quarter 2016 (2,315) 2.46% 0.44% 0.82%
First quarter 2016 568 194 2.50% 0.46% 0.88%
Fourth quarter 2015 411 1,482 2.55% 0.38% 0.88%
Third quarter 2015 826 577 2.68% 0.37% 0.97%
Second quarter 2015 282 (381) 2.71% 0.59% 0.98%
First quarter 2015 765 662 2.77% 0.71% 1.07%
Fourth quarter 2014 191 1,070 2.89% 0.58% 1.08%

Net charge-offs for the current quarter were $478 thousand compared to net recoveries of $2.3 million for the prior quarter and net charge-offs of $577 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. There was $626 thousand of current quarter provision for loan losses, compared to no provision in the prior quarter and $826 thousand in the prior year third 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) Sep 30,
2016
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Deposits
Non-interest bearing deposits $2,098,747 1,907,026 1,918,310 1,893,723 191,721 180,437 205,024
NOW and DDA accounts 1,514,330 1,495,952 1,516,026 1,373,295 18,378 (1,696) 141,035
Savings accounts 938,547 926,865 838,274 771,719 11,682 100,273 166,828
Money market deposit accounts 1,442,602 1,403,028 1,382,028 1,350,098 39,574 60,574 92,504
Certificate accounts 975,521 1,017,681 1,060,650 1,094,565 (42,160) (85,129) (119,044)
Core deposits, total 6,969,747 6,750,552 6,715,288 6,483,400 219,195 254,459 486,347
Wholesale deposits 339,572 338,264 229,720 189,779 1,308 109,852 149,793
Deposits, total 7,309,319 7,088,816 6,945,008 6,673,179 220,503 364,311 636,140
Repurchase agreements 401,243 414,327 423,414 441,041 (13,084) (22,171) (39,798)
Federal Home Loan Bank advances 211,833 328,832 394,131 329,299 (116,999) (182,298) (117,466)
Other borrowed funds 5,956 4,926 6,602 6,619 1,030 (646) (663)
Subordinated debentures 125,956 125,920 125,848 125,812 36 108 144
Other liabilities 114,789 111,962 117,579 113,541 2,827 (2,790) 1,248
Total liabilities $8,169,096 8,074,783 8,012,582 7,689,491 94,313 156,514 479,605

Excluding the TSB acquisition, non-interest bearing deposits increased $179 million, or 9 percent, from the prior quarter which was driven by seasonal fluctuations and a strong inflow of new accounts. Excluding the TSB and Cañon acquisitions, non-interest bearing deposits increased $103 million, or 5 percent, from September 30, 2015. Excluding the TSB acquisition, core interest bearing deposits decreased $17.9 million, or 37 basis points, from the prior quarter. Excluding the TSB and Cañon acquisitions, core interest bearing deposits at September 30, 2016 increased $88 million, or 2 percent, from September 30, 2015. Wholesale deposits (i.e., brokered deposits classified as NOW, DDA, money market deposit and certificate accounts) of $340 million at September 30, 2016 increased $110 million since December 31, 2015 and increased $150 million over the prior year third 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 $401 million at September 30, 2016 decreased $13.1 million, or 3 percent, from the prior quarter and decreased $39.8 million, or 9 percent, from the prior year third quarter. Repurchase agreements fluctuated as certain customers had significant deposit cash flows. Federal Home Loan Bank (“FHLB”) advances of $212 million at September 30, 2016 decreased $117 million, or 36 percent, during the current quarter as the Company’s funding needs decreased because of the increase in non-interest deposits during the current quarter.

Stockholders’ Equity Summary

$ Change from
(Dollars in thousands, except per share data) Sep 30,
2016
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Common equity $1,130,941 1,104,246 1,074,661 1,066,801 26,695 56,280 64,140
Accumulated other comprehensive income 16,838 20,413 1,989 8,007 (3,575) 14,849 8,831
Total stockholders’ equity 1,147,779 1,124,659 1,076,650 1,074,808 23,120 71,129 72,971
Goodwill and core deposit intangible, net (160,008) (153,608) (155,193) (141,624) (6,400) (4,815) (18,384)
Tangible stockholders’ equity $987,771 971,051 921,457 933,184 16,720 66,314 54,587
Stockholders’ equity to total assets 12.32% 12.23% 11.85% 12.26%
Tangible stockholders’ equity to total tangible assets 10.79% 10.73% 10.31% 10.82%
Book value per common share $15.00 14.76 14.15 14.23 0.24 0.85 0.77
Tangible book value per common share $12.91 12.75 12.11 12.35 0.16 0.80 0.56

Tangible stockholders’ equity of $988 million at September 30, 2016 increased $16.7 million, or 2 percent, from the prior quarter primarily from earnings retention and $10.5 million of Company stock issued in connection with the TSB acquisition, both of which more than offset the decrease in accumulated other comprehensive income and the increase in intangibles from the acquisition of TSB. Tangible stockholders’ equity increased $54.6 million, or 6 percent, from a year ago, the result of earnings retention, an increase in accumulated other comprehensive income and $25.6 million of Company stock issued in connection with the TSB and Cañon acquisitions; such increases more than offset the increase in goodwill and other intangibles from the acquisitions. Tangible book value per common share at quarter end increased $0.16 per share from the prior quarter and increased $0.56 per share from the prior year third quarter and was principally due to earnings retention.

Cash Dividend
On September 28, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 per share. The dividend was payable October 20, 2016 to shareholders of record October 11, 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 September 30, 2016
Compared to June 30, 2016, March 31, 2016 and September 30, 2015

Income Summary

Three Months ended $ Change from
(Dollars in thousands) Sep 30,
2016
Jun 30,
2016
Mar 31,
2016
Sep 30,
2015
Jun 30,
2016
Mar 31,
2016
Sep 30,
2015
Net interest income
Interest income $85,944 86,069 84,381 80,367 (125) 1,563 5,577
Interest expense 7,318 7,424 7,675 7,309 (106) (357) 9
Total net interest income 78,626 78,645 76,706 73,058 (19) 1,920 5,568
Non-interest income
Service charges and other fees 16,307 15,772 14,681 15,357 535 1,626 950
Miscellaneous loan fees and charges 1,195 1,163 1,021 1,055 32 174 140
Gain on sale of loans 9,592 8,257 5,992 7,326 1,335 3,600 2,266
(Loss) gain on sale of investments (594) (220) 108 (31) (374) (702) (563)
Other income 1,793 1,787 2,450 2,092 6 (657) (299)
Total non-interest income 28,293 26,759 24,252 25,799 1,534 4,041 2,494
$106,919 105,404 100,958 98,857 1,515 5,961 8,062
Net interest margin (tax-equivalent) 4.00% 4.06% 4.01% 3.96%

Net Interest Income
In the current quarter, interest income of $85.9 million decreased $125 thousand, or 15 basis points, from the prior quarter and was primarily driven by the decrease in interest income from investment securities. As a result of loan growth, commercial loan interest income increased $692 thousand, or 1 percent, during the current quarter and residential real estate loan income increased $414 thousand, or 5 percent, during the current quarter. Current quarter interest income increased $5.6 million, or 7 percent, over the prior year third quarter because of increases in interest income on commercial loans which increased $5.6 million, or 13 percent. As a result of the decreased investment portfolio, the investment income decreased during the current quarter by $1.2 million and decreased $610 thousand compared to the prior year third quarter.

The current quarter interest expense of $7.3 million decreased $106 thousand, or 1 percent, from the prior quarter and increased $9 thousand from the prior year third quarter. The total cost of funding (including non-interest bearing deposits) for the current quarter was 37 basis points compared to 38 basis points for the prior quarter and 39 basis points in the prior year third quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.00 percent compared to 4.06 percent in the prior quarter. During the current quarter, the earning asset yield decreased by 8 basis points and was primarily driven by a 4 basis point decrease from the recovery of interest on loans previously placed on non-accrual and a 4 basis point decrease in discount accretion associated with the fair value of previously acquired loans. The Company’s current quarter net interest margin increased 4
basis points from the prior year third quarter net interest margin of 3.96 percent. The increase was driven by the shift in earning assets from the lower yielding investment securities to higher yielding loans and lower funding cost. “During the quarter, the bank divisions achieved excellent growth in their non-interest bearing deposits,” said Ron Copher, Chief Financial Officer. “The continuing shift in earning assets from investment securities to the higher yielding loan portfolio has benefited the Company.”

Non-interest Income
Non-interest income for the current quarter totaled $28.3 million, an increase of $1.5 million, or 6 percent, from the prior quarter and an increase of $2.5 million, or 10 percent, over the same quarter last year. Service fee income of $16.3 million, increased $535 thousand, or 3 percent, from the prior quarter. Service fee income for the current quarter increased by $950 thousand, or 6 percent, from the prior year third quarter because of the increased number of deposit accounts. Gain on sale of residential loans for the current quarter increased $1.3 million, or 16 percent, from the prior quarter due to the third quarter traditionally experiencing stronger mortgage loan originations. Gain on sale of residential loans for the current quarter increased $2.3 million, or 31 percent, from the prior year third quarter as a result of the housing market continuing to strengthen during the current year coupled with the low interest rate environment. Included in other income was operating revenue of $34 thousand from other real estate owned (“OREO”) and a gain of $134 thousand from the sale of OREO, a combined total of $168 thousand for the current quarter compared to $182 thousand for the prior quarter and $129 thousand for the prior year third quarter.

Non-interest Expense Summary

Three Months ended $ Change from
(Dollars in thousands) Sep 30,
2016
Jun 30,
2016
Mar 31,
2016
Sep 30,
2015
Jun 30,
2016
Mar 31,
2016
Sep 30,
2015
Compensation and employee benefits $38,370 37,560 36,941 33,534 810 1,429 4,836
Occupancy and equipment 6,168 6,443 6,676 6,435 (275) (508) (267)
Advertising and promotions 2,098 2,085 2,125 2,459 13 (27) (361)
Data processing 4,080 3,938 3,373 2,710 142 707 1,370
Other real estate owned 215 214 390 1,047 1 (175) (832)
Regulatory assessments and insurance 1,158 1,066 1,508 1,478 92 (350) (320)
Core deposit intangibles amortization 777 788 797 720 (11) (20) 57
Other expenses 12,314 12,367 10,546 10,729 (53) 1,768 1,585
Total non-interest expense $65,180 64,461 62,356 59,112 719 2,824 6,068

Compensation and employee benefits for the current quarter increased by $810 thousand, or 2 percent, from the prior quarter. Compensation and employee benefits for the current quarter increased by $4.8 million, or 14 percent, from the prior year third 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 $275 thousand, or 4 percent, from the prior quarter and decreased $267 thousand, or 4 percent, from the prior year third quarter. The current quarter data processing expense increased $142 thousand, or 4 percent, from the prior quarter. The current quarter data processing expense increased $1.4 million from the prior year third quarter; such increases primarily from expenses associated with CCP. The current quarter OREO expense of $215 thousand included $162 thousand of operating expense, $13 thousand of fair value write-downs, and $40 thousand of loss from the sales of OREO. Current quarter other expenses of $12.3 million remained stable in total compared to the prior quarter, however several areas experienced increases or decreases related to acquisitions, CCP, and expenses connected with equity investments in New Markets Tax Credit (“NMTC”) projects. Current quarter other expenses increased $1.6 million, or 15 percent, from the prior year third quarter and was primarily driven by increases from costs associated with CCP.

Efficiency Ratio
The current quarter efficiency ratio was 55.84 percent, a 26 basis points decrease from the prior quarter efficiency ratio of 56.10 percent which was driven by the increase in gain on sale of residential loans which outpaced the increase in operating expenses. The current quarter efficiency ratio of 55.84 percent compared to 54.32 percent in the prior year third quarter. The 1.52 percent increase in the efficiency ratio was the result of additional costs associated with CCP and increased compensation expense, which was greater than the benefits experienced in net interest income and non-interest income.

Operating Results for Nine Months ended September 30, 2016
Compared to September 30, 2015

Income Summary

Nine Months ended $ Change % Change
(Dollars in thousands) September 30,
2016
September 30,
2015
Net interest income
Interest income $256,394 $236,470 $19,924 8%
Interest expense 22,417 22,060 357 2%
Total net interest income 233,977 214,410 19,567 9%
Non-interest income
Service charges and other fees 46,760 43,868 2,892 7%
Miscellaneous loan fees and charges 3,379 3,354 25 1%
Gain on sale of loans 23,841 20,356 3,485 17%
Loss on sale of investments (706) (124) (582) 469%
Other income 6,030 6,840 (810) (12)%
Total non-interest income 79,304 74,294 5,010 7%
$313,281 $288,704 $24,577 9%
Net interest margin (tax-equivalent) 4.02% 3.99%

Net Interest Income
Net interest income for the first nine months of the current year was $234 million, an increase of $19.6 million, or 9 percent, over the same period last year. Interest income for the first nine months of the current year increased $19.9 million, or 8 percent, from the prior year first nine months and was principally due to a $17.3 million increase in income from commercial loans. Additional increases included $1.4 million in interest income from investment securities and $1.4 million in interest income from residential loans.

Interest expense of $22.4 million for the first nine months of the current year increased $357 thousand, or 2 percent, over the same period in the prior year. Deposit interest expense for the first nine months of the current year increased $1.7 million, or 14 percent, from the prior year first nine 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 $1.8 million, or 28 percent, which resulted from long-term advances maturing which were replaced by lower rate short-term advances. The total funding cost (including non-interest bearing deposits) for the first nine months of 2016 was 38 basis points compared to 40 basis points for the first nine months of 2015.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the first nine months of 2016 was 4.02 percent, a 3 basis point increase from the net interest margin of 3.99 percent for the first nine 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 $79.3 million for the first nine months of 2016 increased $5.0 million, or 7 percent, over the same period last year. Service charges and other fees of $46.8 million for the first nine months of 2016 increased $2.9 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 $23.8 million on the sale of residential loans for the first nine months of 2016 increased $3.5 million, or 17 percent, from the first nine months of 2015 which was attributable to the stronger housing market and the low interest rate environment. Included in other income was operating revenue of $84 thousand from OREO and gains of $479 thousand from the sales of OREO, which totaled $563 thousand for the first nine months of 2016 compared to $869 thousand for the same period in the prior year.

Non-interest Expense Summary

Nine Months ended $ Change % Change
(Dollars in thousands) September 30,
2016
September 30,
2015
Compensation and employee benefits $112,871 $98,507 $14,364 15%
Occupancy and equipment 19,287 18,927 360 2%
Advertising and promotions 6,308 6,626 (318) (5)%
Data processing 11,391 8,232 3,159 38%
Other real estate owned 819 3,182 (2,363) (74)%
Regulatory assessments and insurance 3,732 3,789 (57) (2)%
Core deposit intangible amortization 2,362 2,206 156 7%
Other expenses 35,227 33,085 2,142 6%
Total non-interest expense $191,997 $174,554 $17,443 10%

Compensation and employee benefits for the first nine months of 2016 increased $14.4 million, or 15 percent, from the same period due to the increased number of employees including from the acquired banks and annual salary increases. Occupancy and equipment expense of $19.3 million for the first nine months of 2016 increased $360 thousand, or 2 percent. Outsourced data processing expense increased $3.2 million, or 38 percent, from the prior year first nine months as a result of additional costs from CCP. OREO expense of $819 thousand in the first nine months of 2016 decreased $2.4 million, or 74 percent, from the first nine months of the prior year. OREO expense for the first nine months of 2016 included $443 thousand of operating expenses, $92 thousand of fair value write-downs, and $284 thousand of loss from the sales of OREO. Current year other expenses of $35.2 million increased $2.1 million, or 6 percent, from the prior year and was driven by increases from costs associated with CCP which were partially offset by decreases in expenses connected with the equity investments in NMTC projects.

Provision for Loan Losses
The provision for loan losses was $1.2 million for the first nine months of 2016, a decrease of $679 thousand, or 36 percent, from the same period in the prior year. Net recovery of loans during the first nine months of 2016 was $1.6 million compared to net charge-offs of $858 thousand from the first nine months of 2015.

Efficiency Ratio
The efficiency ratio was 56.15 percent for the first nine months of 2016 and 55.01 percent for the first nine 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, October 21, 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 91975601. To participate on the webcast, log on to: http://edge.media-server.com/m/p/hgo5vjek. 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 91975601 until November 4, 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) September 30,
2016
June 30,
2016
December 31,
2015
September 30,
2015
Assets
Cash on hand and in banks $129,727 147,748 117,137 104,363
Federal funds sold 225 6,080 2,210
Interest bearing cash deposits 121,461 12,585 70,036 136,262
Cash and cash equivalents 251,413 160,333 193,253 242,835
Investment securities, available-for-sale 2,292,079 2,487,955 2,610,760 2,530,994
Investment securities, held-to-maturity 679,707 680,574 702,072 651,822
Total investment securities 2,971,786 3,168,529 3,312,832 3,182,816
Loans held for sale 71,069 74,140 56,514 40,456
Loans receivable 5,595,962 5,378,617 5,078,681 4,876,419
Allowance for loan and lease losses (132,534) (132,386) (129,697) (130,768)
Loans receivable, net 5,463,428 5,246,231 4,948,984 4,745,651
Premises and equipment, net 178,638 177,911 194,030 185,864
Other real estate owned 22,662 24,370 26,815 26,609
Accrued interest receivable 50,138 47,554 44,524 46,786
Deferred tax asset 51,757 46,488 58,475 55,095
Core deposit intangible, net 12,955 12,970 14,555 10,781
Goodwill 147,053 140,638 140,638 130,843
Non-marketable equity securities 20,103 24,791 27,495 24,905
Other assets 75,873 75,487 71,117 71,658
Total assets $9,316,875 9,199,442 9,089,232 8,764,299
Liabilities
Non-interest bearing deposits $2,098,747 1,907,026 1,918,310 1,893,723
Interest bearing deposits 5,210,572 5,181,790 5,026,698 4,779,456
Securities sold under agreements to repurchase 401,243 414,327 423,414 441,041
FHLB advances 211,833 328,832 394,131 329,299
Other borrowed funds 5,956 4,926 6,602 6,619
Subordinated debentures 125,956 125,920 125,848 125,812
Accrued interest payable 3,439 3,486 3,517 3,641
Other liabilities 111,350 108,476 114,062 109,900
Total liabilities 8,169,096 8,074,783 8,012,582 7,689,491
Stockholders’ Equity
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding
Common stock, $0.01 par value per share, 117,187,500 shares authorized 765 762 761 755
Paid-in capital 748,463 737,379 736,368 720,639
Retained earnings - substantially restricted 381,713 366,105 337,532 345,407
Accumulated other comprehensive income 16,838 20,413 1,989 8,007
Total stockholders’ equity 1,147,779 1,124,659 1,076,650 1,074,808
Total liabilities and stockholders’ equity $9,316,875 9,199,442 9,089,232 8,764,299


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
Three Months ended Nine Months ended
(Dollars in thousands, except per share data) September 30,
2016
June 30,
2016
September 30,
2015
September 30,
2016
September 30,
2015
Interest Income
Investment securities $21,827 23,037 22,437 68,747 67,355
Residential real estate loans 8,538 8,124 7,878 24,947 23,581
Commercial loans 47,694 47,002 42,137 139,199 121,857
Consumer and other loans 7,885 7,906 7,915 23,501 23,677
Total interest income 85,944 86,069 80,367 256,394 236,470
Interest Expense
Deposits 4,550 4,560 3,947 13,905 12,206
Securities sold under agreements to repurchase 289 275 261 882 734
Federal Home Loan Bank advances 1,527 1,665 2,273 4,844 6,685
Federal funds purchased and other borrowed funds 17 14 21 49 63
Subordinated debentures 935 910 807 2,737 2,372
Total interest expense 7,318 7,424 7,309 22,417 22,060
Net Interest Income 78,626 78,645 73,058 233,977 214,410
Provision for loan losses 626 826 1,194 1,873
Net interest income after provision for loan losses 78,000 78,645 72,232 232,783 212,537
Non-Interest Income
Service charges and other fees 16,307 15,772 15,357 46,760 43,868
Miscellaneous loan fees and charges 1,195 1,163 1,055 3,379 3,354
Gain on sale of loans 9,592 8,257 7,326 23,841 20,356
Loss on sale of investments (594) (220) (31) (706) (124)
Other income 1,793 1,787 2,092 6,030 6,840
Total non-interest income 28,293 26,759 25,799 79,304 74,294
Non-Interest Expense
Compensation and employee benefits 38,370 37,560 33,534 112,871 98,507
Occupancy and equipment 6,168 6,443 6,435 19,287 18,927
Advertising and promotions 2,098 2,085 2,459 6,308 6,626
Data processing 4,080 3,938 2,710 11,391 8,232
Other real estate owned 215 214 1,047 819 3,182
Regulatory assessments and insurance 1,158 1,066 1,478 3,732 3,789
Core deposit intangibles amortization 777 788 720 2,362 2,206
Other expenses 12,314 12,367 10,729 35,227 33,085
Total non-interest expense 65,180 64,461 59,112 191,997 174,554
Income Before Income Taxes 41,113 40,943 38,919 120,090 112,277
Federal and state income tax expense 10,156 10,492 9,305 30,000 25,658
Net Income $30,957 30,451 29,614 90,090 86,619


Glacier Bancorp, Inc.
Average Balance Sheets
Three Months ended
September 30, 2016 September 30, 2015
(Dollars in thousands) Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans $752,723 $8,538 4.54% $679,037 $7,878 4.64%
Commercial loans 1 4,092,627 48,817 4.75% 3,510,098 42,811 4.84%
Consumer and other loans 678,415 7,885 4.62% 639,155 7,915 4.91%
Total loans 2 5,523,765 65,240 4.70% 4,828,290 58,604 4.82%
Tax-exempt investment securities 3 1,311,616 18,764 5.72% 1,334,980 19,511 5.85%
Taxable investment securities 4 1,774,209 9,813 2.21% 1,930,378 10,063 2.09%
Total earning assets 8,609,590 93,817 4.33% 8,093,648 88,178 4.32%
Goodwill and intangibles 155,347 142,031
Non-earning assets 398,463 384,452
Total assets $9,163,400 $8,620,131
Liabilities
Non-interest bearing deposits $1,973,648 $ % $1,793,899 $ %
NOW and DDA accounts 1,501,944 244 0.06% 1,387,334 264 0.08%
Savings accounts 934,911 119 0.05% 763,430 90 0.05%
Money market deposit accounts 1,425,655 543 0.15% 1,349,244 514 0.15%
Certificate accounts 986,411 1,482 0.60% 1,125,276 1,657 0.58%
Wholesale deposits 5 345,287 2,162 2.49% 190,724 1,422 2.96%
FHLB advances 259,216 1,527 2.30% 329,797 2,273 2.70%
Repurchase agreements and other borrowed funds 502,391 1,241 0.98% 512,807 1,089 0.84%
Total funding liabilities 7,929,463 7,318 0.37% 7,452,511 7,309 0.39%
Other liabilities 93,250 92,955
Total liabilities 8,022,713 7,545,466
Stockholders’ Equity
Common stock 762 755
Paid-in capital 741,072 720,325
Retained earnings 381,197 344,768
Accumulated other comprehensive income 17,656 8,817
Total stockholders’ equity 1,140,687 1,074,665
Total liabilities and stockholders’ equity $9,163,400 $8,620,131
Net interest income (tax-equivalent) $86,499 $80,869
Net interest spread (tax-equivalent) 3.96% 3.93%
Net interest margin (tax-equivalent) 4.00% 3.96%
__________
1 Includes tax effect of $1.1 million and $674 thousand on tax-exempt municipal loan and lease income for the three months ended September 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 $6.4 million and $6.8 million on tax-exempt investment securities income for the three months ended September 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 September 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)
Nine Months ended
September 30, 2016 September 30, 2015
(Dollars in thousands) Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans $736,866 $24,947 4.51% $673,084 $23,581 4.67%
Commercial loans 1 3,915,503 142,108 4.85% 3,411,631 123,759 4.85%
Consumer and other loans 666,200 23,501 4.71% 625,726 23,677 5.06%
Total loans 2 5,318,569 190,556 4.79% 4,710,441 171,017 4.85%
Tax-exempt investment securities 3 1,337,511 57,420 5.72% 1,317,788 57,026 5.77%
Taxable investment securities 4 1,895,871 31,961 2.25% 1,894,572 30,472 2.14%
Total earning assets 8,551,951 279,937 4.37% 7,922,801 258,515 4.36%
Goodwill and intangibles 154,708 141,851
Non-earning assets 393,290 385,216
Total assets $9,099,949 $8,449,868
Liabilities
Non-interest bearing deposits $1,897,176 $ % $1,702,459 $ %
NOW and DDA accounts 1,487,413 808 0.07% 1,347,658 790 0.08%
Savings accounts 900,141 331 0.05% 740,905 263 0.05%
Money market deposit accounts 1,410,257 1,635 0.15% 1,330,212 1,544 0.16%
Certificate accounts 1,030,283 4,605 0.60% 1,147,820 5,284 0.62%
Wholesale deposits 5 335,628 6,526 2.60% 208,640 4,325 2.77%
FHLB advances 319,808 4,844 1.99% 315,068 6,685 2.80%
Repurchase agreements and other borrowed funds 507,514 3,668 0.97% 504,787 3,169 0.84%
Total funding liabilities 7,888,220 22,417 0.38% 7,297,549 22,060 0.40%
Other liabilities 94,718 90,300
Total liabilities 7,982,938 7,387,849
Stockholders’ Equity
Common stock 762 754
Paid-in capital 738,126 717,424
Retained earnings 366,094 329,630
Accumulated other comprehensive income 12,029 14,211
Total stockholders’ equity 1,117,011 1,062,019
Total liabilities and stockholders’ equity $9,099,949 $8,449,868
Net interest income (tax-equivalent) $257,520 $236,455
Net interest spread (tax-equivalent) 3.99% 3.96%
Net interest margin (tax-equivalent) 4.02% 3.99%
__________
1 Includes tax effect of $2.9 million and $1.9 million on tax-exempt municipal loan and lease income for the nine months ended September 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 $19.6 million and $19.1 million on tax-exempt investment securities income for the nine months ended September 30, 2016 and 2015, respectively.
4 Includes tax effect of $1.1 million and $1.1 million on federal income tax credits for the nine months ended September 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) Sep 30,
2016
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Custom and owner occupied construction $82,935 $78,525 $75,094 $64,951 6% 10% 28%
Pre-sold and spec construction 66,812 59,530 50,288 46,921 12% 33% 42%
Total residential construction 149,747 138,055 125,382 111,872 8% 19% 34%
Land development 68,597 61,803 62,356 83,756 11% 10% (18)%
Consumer land or lots 96,798 95,247 97,270 98,490 2% % (2)%
Unimproved land 69,880 70,396 73,844 74,439 (1)% (5)% (6)%
Developed lots for operative builders 13,256 13,845 12,336 13,697 (4)% 7% (3)%
Commercial lots 27,512 26,084 22,035 22,937 5% 25% 20%
Other construction 246,753 206,343 156,784 122,347 20% 57% 102%
Total land, lot, and other construction 522,796 473,718 424,625 415,666 10% 23% 26%
Owner occupied 963,063 927,237 938,625 885,736 4% 3% 9%
Non-owner occupied 890,981 835,272 774,192 739,057 7% 15% 21%
Total commercial real estate 1,854,044 1,762,509 1,712,817 1,624,793 5% 8% 14%
Commercial and industrial 697,598 705,011 649,553 619,688 (1)% 7% 13%
Agriculture 425,645 421,097 367,339 386,523 1% 16% 10%
1st lien 883,034 867,918 856,193 801,705 2% 3% 10%
Junior lien 61,788 64,248 65,383 67,351 (4)% (5)% (8)%
Total 1-4 family 944,822 932,166 921,576 869,056 1% 3% 9%
Multifamily residential 204,395 198,583 201,542 189,944 3% 1% 8%
Home equity lines of credit 399,446 388,939 372,039 359,605 3% 7% 11%
Other consumer 154,547 156,568 150,469 154,095 (1)% 3% %
Total consumer 553,993 545,507 522,508 513,700 2% 6% 8%
Other 313,991 276,111 209,853 185,633 14% 50% 69%
Total loans receivable, including loans held for sale 5,667,031 5,452,757 5,135,195 4,916,875 4% 10% 15%
Less loans held for sale 1 (71,069) (74,140) (56,514) (40,456) (4)% 26% 76%
Total loans receivable $5,595,962 $5,378,617 $5,078,681 $4,876,419 4% 10% 15%
_______
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) Sep 30,
2016
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Sep 30,
2016
Sep 30,
2016
Sep 30,
2016
Custom and owner occupied construction $375 390 1,016 1,048 375
Pre-sold and spec construction 250 250
Total residential construction 625 390 1,016 1,048 625
Land development 11,717 12,830 17,582 17,719 1,588 10,129
Consumer land or lots 2,196 1,656 2,250 2,430 766 1,430
Unimproved land 12,068 12,147 12,328 12,055 7,980 4,088
Developed lots for operative builders 175 176 488 492 175
Commercial lots 2,165 1,979 1,521 1,631 216 1,949
Other construction 4,236 4,244
Total land, lot and other construction 28,321 28,788 38,405 38,571 10,550 17,771
Owner occupied 19,970 10,503 10,952 12,719 18,190 1,780
Non-owner occupied 4,005 4,055 3,446 3,833 3,328 677
Total commercial real estate 23,975 14,558 14,398 16,552 21,518 2,457
Commercial and industrial 5,175 7,123 3,993 5,110 5,002 160 13
Agriculture 2,329 3,979 3,281 3,114 2,145 184
1st lien 9,333 11,332 10,691 11,953 6,267 817 2,249
Junior lien 1,335 1,489 668 660 1,160 35 140
Total 1-4 family 10,668 12,821 11,359 12,613 7,427 852 2,389
Multifamily residential 432 432 113 432
Home equity lines of credit 4,734 5,413 5,486 6,013 4,445 289
Other consumer 182 275 228 204 136 14 32
Total consumer 4,916 5,688 5,714 6,217 4,581 303 32
Other 1,800 1,802 1,800 1,800 1,800
Total $78,241 75,581 80,079 85,025 52,280 3,299 22,662


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
Accruing 30-89 Days Delinquent Loans, by Loan Type % Change from
(Dollars in thousands) Sep 30,
2016
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Custom and owner occupied construction $65 $375 $462 $138 (83)% (86)% (53)%
Pre-sold and spec construction 304 181 144 (100)% (100)% (100)%
Total residential construction 65 679 643 282 (90)% (90)% (77)%
Land development 37 447 (100)% (100)% n/m
Consumer land or lots 130 676 166 266 (81)% (22)% (51)%
Unimproved land 857 879 774 304 (3)% 11% 182%
Developed lots for operative builders 166 (100)% n/m n/m
Other construction 7,125 337 n/m 2,014% n/m
Total land, lot and other construction 8,112 1,758 1,724 570 361% 371% 1,323%
Owner occupied 586 2,975 2,760 2,497 (80)% (79)% (77)%
Non-owner occupied 5,830 5,364 923 5,529 9% 532% 5%
Total commercial real estate 6,416 8,339 3,683 8,026 (23)% 74% (20)%
Commercial and industrial 4,038 4,956 1,968 2,774 (19)% 105% 46%
Agriculture 989 804 1,014 867 23% (2)% 14%
1st lien 3,439 2,667 6,272 2,510 29% (45)% 37%
Junior lien 977 1,251 1,077 228 (22)% (9)% 329%
Total 1-4 family 4,416 3,918 7,349 2,738 13% (40)% 61%
Multifamily Residential 662 114 n/m (100)% (100)%
Home equity lines of credit 2,383 2,253 1,046 1,599 6% 128% 49%
Other consumer 943 736 1,227 811 28% (23)% 16%
Total consumer 3,326 2,989 2,273 2,410 11% 46% 38%
Other 22 36 97 41 (39)% (77)% (46)%
Total $27,384 $23,479 $19,413 $17,822 17% 41% 54%
_______
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) Sep 30,
2016
Jun 30,
2016
Dec 31,
2015
Sep 30,
2015
Sep 30,
2016
Sep 30,
2016
Pre-sold and spec construction $(39) (37) (53) (34) 39
Land development (2,372) (2,342) (288) (293) 29 2,401
Consumer land or lots (487) (351) 66 (8) 25 512
Unimproved land (114) (46) (325) (152) 114
Developed lots for operative builders (23) (54) (85) (72) 15 38
Commercial lots 29 21 (26) (5) 33 4
Other construction (1) (1)
Total land, lot and other construction (2,967) (2,772) (659) (531) 102 3,069
Owner occupied (354) (51) 247 249 32 386
Non-owner occupied 9 (3) 93 105 13 4
Total commercial real estate (345) (54) 340 354 45 390
Commercial and industrial (643) (112) 1,389 1,011 761 1,404
Agriculture (29) (1) 50 (8) 25 54
1st lien 132 245 834 (80) 327 195
Junior lien (15) (56) (125) (106) 137 152
Total 1-4 family 117 189 709 (186) 464 347
Multifamily residential 229 229 (318) (318) 229
Home equity lines of credit 450 (25) 740 531 696 246
Other consumer 255 149 143 39 409 154
Total consumer 705 124 883 570 1,105 400
Other 1,329 313 (1) 2,601 1,272
Total $(1,643) (2,121) 2,340 858 5,332 6,975

Visit our website at www.glacierbancorp.com

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

Source:Glacier Bancorp, Inc.