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Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2017

1st Quarter 2017 Highlights:

  • Net income of $31.3 million for the current quarter, an increase of $2.6 million, or 9 percent, over the prior year first quarter net income of $28.7 million.
  • Current quarter diluted earnings per share of $0.41, an increase of 8 percent from the prior year first quarter diluted earnings per share of $0.38.
  • Loan growth of $193 million, or 14 percent annualized, for the current quarter.
  • Core deposits increased $99.6 million, or 6 percent annualized, during the current quarter.
  • Net interest margin of 4.03 percent as a percentage of earning assets, on a tax equivalent basis, a 2 basis point increase over the 4.01 net interest margin in the first quarter of the prior year.
  • Dividend declared of $0.21 per share, an increase of $0.01 per share, or 5 percent, over the prior quarter. The dividend was the 128th consecutive quarterly dividend.

Financial Highlights

At or for the Three Months ended
(Dollars in thousands, except per share and market data)Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Operating results
Net income$31,255 31,041 28,682
Basic earnings per share$0.41 0.41 0.38
Diluted earnings per share$0.41 0.41 0.38
Dividends declared per share 1$0.21 0.50 0.20
Market value per share
Closing$33.93 36.23 25.42
High$38.03 37.66 26.34
Low$32.47 27.50 22.19
Selected ratios and other data
Number of common stock shares outstanding76,619,952 76,525,402 76,168,388
Average outstanding shares - basic76,572,116 76,525,402 76,126,251
Average outstanding shares - diluted76,633,283 76,615,272 76,173,417
Return on average assets (annualized)1.35% 1.33% 1.28%
Return on average equity (annualized)11.19% 10.82% 10.53%
Efficiency ratio55.57% 55.08% 56.53%
Dividend payout ratio 151.22% 121.95% 52.63%
Loan to deposit ratio78.91% 78.10% 74.65%
Number of full time equivalent employees2,224 2,222 2,184
Number of locations142 142 144
Number of ATMs161 166 167
__________
1 Includes a special dividend declared of $0.30 per share for the three months ended December 31, 2016.

KALISPELL, Mont., April 20, 2017 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (Nasdaq:GBCI) reported net income of $31.3 million for the current quarter, an increase of $2.6 million, or 9 percent, from the $28.7 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.41 per share, an increase of $0.03, or 8 percent, from the prior year first quarter diluted earnings per share of $0.38. “This strong first quarter performance is a great start to 2017 for Glacier Bancorp,” said Randy Chesler, President and Chief Executive Officer. “Our 13 Bank divisions and the supporting staff groups did an excellent job,” Chesler said.

Asset Summary

$ Change from
(Dollars in thousands)Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Dec 31,
2016
Mar 31,
2016
Cash and cash equivalents$234,004 152,541 150,861 81,463 83,143
Investment securities, available-for-sale 2,314,521 2,425,477 2,604,625 (110,956) (290,104)
Investment securities, held-to-maturity667,388 675,674 691,663 (8,286) (24,275)
Total investment securities2,981,909 3,101,151 3,296,288 (119,242) (314,379)
Loans receivable
Residential real estate685,458 674,347 685,026 11,111 432
Commercial real estate3,056,372 2,990,141 2,680,691 66,231 375,681
Other commercial1,462,110 1,342,250 1,172,956 119,860 289,154
Home equity433,554 434,774 423,895 (1,220) 9,659
Other consumer239,480 242,951 234,625 (3,471) 4,855
Loans receivable5,876,974 5,684,463 5,197,193 192,511 679,781
Allowance for loan and lease losses(129,226) (129,572) (130,071) 346 845
Loans receivable, net5,747,748 5,554,891 5,067,122 192,857 680,626
Other assets590,247 642,017 606,471 (51,770) (16,224)
Total assets$9,553,908 9,450,600 9,120,742 103,308 433,166

Total investment securities of $2.982 billion at March 31, 2017 decreased $119 million, or 4 percent, during the current quarter and decreased $314 million, or 10 percent, from the prior year first 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 31 percent of total assets at March 31, 2017 compared to 33 percent of total assets at December 31, 2016 and 36 percent of total assets at March 31, 2016.

The Company experienced another strong quarter for loan growth with an increase of $193 million, or 14 percent annualized, during the current quarter. The loan category with the largest increase was other commercial loans which increased $120 million, or 9 percent, and included an increase of $42 million from municipal loans. Excluding the acquisition of Treasure State Bank (“TSB”), the loan portfolio increased $628 million, or 12 percent, since March 31, 2016 with the primary increase coming from growth in commercial real estate and other commercial loans of $351 million and $281 million, respectively. “First quarter loan growth was strong, driven by municipal lending growth and broad based activity across our thirteen Bank divisions,” Chesler said.

Credit Quality Summary

At or for the
Three Months
ended
At or for the
Year ended
At or for the
Three Months
ended
(Dollars in thousands)Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Allowance for loan and lease losses
Balance at beginning of period$129,572 129,697 129,697
Provision for loan losses1,598 2,333 568
Charge-offs(4,229) (11,496) (1,163)
Recoveries2,285 9,038 969
Balance at end of period$129,226 129,572 130,071
Other real estate owned$17,771 20,954 22,085
Accruing loans 90 days or more past due3,028 1,099 4,615
Non-accrual loans50,674 49,332 53,523
Total non-performing assets$71,473 71,385 80,223
Non-performing assets as a percentage of subsidiary assets0.75% 0.76% 0.88%
Allowance for loan and lease losses as a percentage of non-performing loans 241% 257% 224%
Allowance for loan and lease losses as a percentage of total loans2.20% 2.28% 2.50%
Net charge-offs as a percentage of total loans0.03% 0.04% %
Accruing loans 30-89 days past due$39,160 25,617 23,996
Accruing troubled debt restructurings$38,955 52,077 53,311
Non-accrual troubled debt restructurings$19,479 21,693 23,879
U.S. government guarantees included in non-performing assets$1,690 1,746 2,247

Non-performing assets at March 31, 2017 were $71.5 million, with a slight increase from the prior quarter and a decrease of $8.8 million, or 11 percent, from a year ago. Non-performing assets as a percentage of subsidiary assets at March 31, 2017 was 0.75 percent, which was a decrease of 13 basis points from the prior year first quarter of 0.88 percent. Early stage delinquencies (accruing loans 30-89 days past due) of $39.2 million at March 31, 2017 increased $13.5 million from the prior quarter and increased $15.2 million from the prior year first quarter with half of the increase from one loan that the Company is currently in the process of evaluating. The allowance for loan and lease losses (“allowance”) as a percent of total loans outstanding at March 31, 2017 was 2.20 percent, a decrease of 8 basis points from 2.28 percent at December 31, 2016.

Credit Quality Trends and Provision for Loan Losses

(Dollars in thousands) Provision
for Loan
Losses
Net
Charge-Offs
(Recoveries)
ALLL
as a Percent
of Loans
Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans
Non-Performing
Assets to
Total Subsidiary
Assets
First quarter 2017$1,598 $1,944 2.20% 0.67% 0.75%
Fourth quarter 20161,139 4,101 2.28% 0.45% 0.76%
Third quarter 2016626 478 2.37% 0.49% 0.84%
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%

Net charge-offs for the current quarter were $1.9 million compared to $4.1 million for the prior quarter and $194 thousand from the same quarter last year. The quarterly net charge-offs continue to experience a fair amount of volatility on a quarterly basis. There was $1.6 million of current quarter provision for loan losses, compared to $1.1 million in the prior quarter and $568 thousand in the prior year first quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of the loan loss provision.

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

Liability Summary

$ Change from
(Dollars in thousands)Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Dec 31,
2016
Mar 31,
2016
Deposits
Non-interest bearing deposits$2,049,476 2,041,852 1,887,004 7,624 162,472
NOW and DDA accounts1,596,353 1,588,550 1,448,454 7,803 147,899
Savings accounts1,035,023 996,061 879,541 38,962 155,482
Money market deposit accounts1,516,731 1,464,415 1,411,970 52,316 104,761
Certificate accounts941,628 948,714 1,063,735 (7,086) (122,107)
Core deposits, total7,139,211 7,039,592 6,690,704 99,619 448,507
Wholesale deposits340,946 332,687 325,490 8,259 15,456
Deposits, total7,480,157 7,372,279 7,016,194 107,878 463,963
Repurchase agreements497,187 473,650 445,960 23,537 51,227
Federal Home Loan Bank advances 211,627 251,749 313,969 (40,122) (102,342)
Other borrowed funds8,894 4,440 6,633 4,454 2,261
Subordinated debentures126,027 125,991 125,884 36 143
Other liabilities94,776 105,622 118,422 (10,846) (23,646)
Total liabilities$8,418,668 8,333,731 8,027,062 84,937 391,606

The Company benefited from the current quarter growth in core deposits which increased $99.6 million, or 6 percent annualized, from the prior quarter. Excluding the TSB acquisition, core deposits increased $390 million, or 6 percent, from March 31, 2016. Non-interest bearing deposits of $2.049 billion at March 31, 2017 increased $7.6 million, or 37 basis points, from the prior quarter. Excluding the TSB acquisition, non-interest bearing deposits increased $149 million, or 8 percent, from March 31, 2016.

Securities sold under agreements to repurchase (“repurchase agreements”) of $497 million at March 31, 2017 increased $23.5 million, or 5 percent, from the prior quarter and increased $51.2 million, or 11 percent, from the prior year first quarter. Federal Home Loan Bank (“FHLB”) advances of $212 million at March 31, 2017 decreased $40.1 million, or 16 percent, from the prior quarter and decreased $102 million, or 33 percent, from the prior year first quarter due to the increase in deposits.

Stockholders’ Equity Summary

$ Change from
(Dollars in thousands, except per share data)Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Dec 31,
2016
Mar 31,
2016
Common equity$1,139,652 1,124,251 1,088,359 15,401 51,293
Accumulated other comprehensive (loss) income (4,412) (7,382) 5,321 2,970 (9,733)
Total stockholders’ equity1,135,240 1,116,869 1,093,680 18,371 41,560
Goodwill and core deposit intangible, net(158,799) (159,400) (154,396) 601 (4,403)
Tangible stockholders’ equity$976,441 957,469 939,284 18,972 37,157


Stockholders’ equity to total assets11.88% 11.82% 11.99%
Tangible stockholders’ equity to total tangible assets 10.39% 10.31% 10.48%
Book value per common share$14.82 14.59 14.36 0.23 0.46
Tangible book value per common share$12.74 12.51 12.33 0.23 0.41

Tangible stockholders’ equity of $976 million at March 31, 2017 increased $19.0 million, or 2 percent, from the prior quarter primarily as a result of earnings retention and an increase in accumulated other comprehensive income. Tangible stockholders’ equity increased $37.2 million, or 4 percent, from a year ago, the result of earnings retention and $10.5 million of Company stock issued in connection with the TSB acquisition; such increases more than offset the increase in goodwill and other intangibles from the acquisition and the decrease in accumulated other comprehensive income. Tangible book value per common share at quarter end increased $0.23 per share from the prior quarter and increased $0.41 per share from a year ago.

Cash Dividend
On March 29, 2017, the Company’s Board of Directors declared a quarterly cash dividend of $0.21 per share, an increase of $0.01 per share, or 5 percent. The dividend was payable April 20, 2017 to shareholders of record April 11, 2017. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended March 31, 2017
Compared to December 31, 2016 and March 31, 2016

Income Summary

Three Months ended $ Change from
(Dollars in thousands)Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Dec 31,
2016
Mar 31,
2016
Net interest income
Interest income$87,628 87,759 84,381 (131) 3,247
Interest expense7,366 7,214 7,675 152 (309)
Total net interest income80,262 80,545 76,706 (283) 3,556
Non-interest income
Service charges and other fees15,633 15,645 14,681 (12) 952
Miscellaneous loan fees and charges 980 1,234 1,021 (254) (41)
Gain on sale of loans6,358 9,765 5,992 (3,407) 366
(Loss) gain on sale of investments(100) (757) 108 657 (208)
Other income2,818 2,127 2,450 691 368
Total non-interest income25,689 28,014 24,252 (2,325) 1,437
$105,951 108,559 100,958 (2,608) 4,993
Net interest margin (tax-equivalent)4.03% 4.02% 4.01%

Net Interest Income
In the current quarter, interest income of $87.6 million decreased $131 thousand, or 15 basis points, from the prior quarter which was primarily attributable to two less days during the current quarter. Current quarter interest income increased $3.2 million, or 4 percent, over the prior year first quarter. Current quarter interest income on commercial loans increased $5.5 million, or 12 percent, from the prior year first quarter which more than offset the $1.9 million decrease in investment interest income.

The current quarter interest expense of $7.4 million increased $152 thousand, or 2 percent, from the prior quarter and decreased $309 thousand, or 4 percent, from the prior year first quarter. The total cost of funding (including non-interest bearing deposits) for the current quarter was 37 basis points compared to 36 basis points for the prior quarter and 39 basis points for the prior year first quarter.

The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 4.03 percent compared to 4.02 percent in the prior quarter which was attributable to an increase in the earning asset yields from the continuing shift of lower yielding investments to higher yielding loans. The current quarter net interest margin increased 2 basis points over the prior year first quarter net interest margin of 4.01 percent, due to a 2 basis points decrease in cost of funds and the remix of earning assets to higher yielding loans. “The Bank divisions’ focus on growing core deposits combined with the shift of cash flow from the investment portfolio into higher yielding loans supported the current quarter’s 4.03 percent net interest margin,” said Ron Copher, Chief Financial Officer.

Non-interest Income
Non-interest income for the current quarter totaled $25.7 million, a decrease of $2.3 million, or 8 percent, from the prior quarter and an increase of $1.4 million, or 6 percent, over the same quarter last year. Service fee income of $15.6 million, increased by $952 thousand, or 6 percent, from the prior year first quarter as a result of the increased number of accounts. Gain on sale of loans for the current quarter decreased $3.4 million, or 35 percent, from the prior quarter and was driven by the seasonal activity. Gain on sale of loans for the current quarter increased $366 thousand, or 6 percent, from the prior year first quarter. Other income of $2.8 million, increased $691 thousand, or 32 percent, over the prior quarter and increased $368 thousand, or 15 percent, over the prior year first quarter principally due to the current quarter gain on sale of other real estate owned (“OREO”). Other income included a gain of $967 thousand from the sale of OREO and operating revenue of $15 thousand from OREO, a combined total of $982 thousand for the current quarter compared to $481 thousand for the prior quarter and $214 thousand for the prior year first quarter.

Non-interest Expense Summary

Three Months ended $ Change from
(Dollars in thousands)Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Dec 31,
2016
Mar 31,
2016
Compensation and employee benefits$39,246 38,826 36,941 420 2,305
Occupancy and equipment6,646 6,692 6,676 (46) (30)
Advertising and promotions1,973 2,125 2,125 (152) (152)
Data processing3,124 3,409 3,373 (285) (249)
Other real estate owned273 2,076 390 (1,803) (117)
Regulatory assessments and insurance 1,061 1,048 1,508 13 (447)
Core deposit intangibles amortization601 608 797 (7) (196)
Other expenses10,420 11,933 10,546 (1,513) (126)
Total non-interest expense$63,344 66,717 62,356 (3,373) 988

The Company consolidated its Bank divisions’ individual core database systems into a single core database and re-issued debit cards with chip technology during 2016 (the Core Consolidation Project or “CCP”). Expenses related to the CCP were $741 thousand in the fourth quarter of 2016 and $834 thousand during the first quarter of 2016. Excluding CCP expenses, non-interest expense for the current quarter decreased $2.6 million, or 4 percent, over the prior quarter and increased $1.8 million, or 4 percent, over the prior year first quarter.

Compensation and employee benefits for the current quarter increased by $2.3 million, or 6 percent, from the prior year first quarter due to salary increases, vesting of restricted stock awards and the increased number of employees, including increases from the TSB acquisition. The current quarter OREO expense of $273 thousand included $234 thousand of operating expense, $21 thousand of fair value write-downs, and $18 thousand of loss from the sales of OREO. The current quarter other expenses decreased $1.5 million over the prior quarter primarily from decreases related to CCP, acquisition related expenses, and expenses connected with equity investments in New Market Tax Credit projects. Current quarter other expenses decreased $126 thousand, or 1 percent, from the prior year first quarter which was driven by decreased costs from CCP.

Efficiency Ratio
The current quarter efficiency ratio was 55.57 percent, a 49 basis points increase from the prior quarter efficiency ratio of 55.08 percent. Although there was a reduction in expenses, the decrease in gain on sale of loans during the current quarter drove the increase in the efficiency ratio from the prior quarter. The current quarter efficiency ratio decreased 96 basis points from the prior year first quarter ratio of 56.53 percent resulting from the increase in interest income on commercial loans, which was greater than the increase in non-interest expense.

Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about management’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations in the forward-looking statements, including those set forth in this news release:

  • the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio;
  • changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability;
  • changes in the cost and scope of insurance from the FDIC and other third parties;
  • 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 reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain (and maintain) customers;
  • competition among financial institutions in the Company's markets may increase significantly;
  • the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions;
  • the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
  • consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
  • dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
  • material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
  • natural disasters, including fires, floods, earthquakes, and other unexpected events;
  • the Company’s success in managing risks involved in the foregoing; and
  • the effects of any reputational damage to the Company resulting from any of the foregoing.

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

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, April 21, 2017. 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 5756292. To participate on the webcast, log on to: http://edge.media-server.com/m/p/bi5xib4n. 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 5756292 until May 5, 2017.

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

Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data)March 31,
2017
December 31,
2016
March 31,
2016
Assets
Cash on hand and in banks$124,501 135,268 104,222
Federal funds sold190 1,400
Interest bearing cash deposits109,313 17,273 45,239
Cash and cash equivalents234,004 152,541 150,861
Investment securities, available-for-sale2,314,521 2,425,477 2,604,625
Investment securities, held-to-maturity667,388 675,674 691,663
Total investment securities2,981,909 3,101,151 3,296,288
Loans held for sale25,649 72,927 40,484
Loans receivable5,876,974 5,684,463 5,197,193
Allowance for loan and lease losses(129,226) (129,572) (130,071)
Loans receivable, net5,747,748 5,554,891 5,067,122
Premises and equipment, net175,283 176,198 192,951
Other real estate owned17,771 20,954 22,085
Accrued interest receivable48,043 45,832 47,363
Deferred tax asset64,575 67,121 55,773
Core deposit intangible, net11,746 12,347 13,758
Goodwill147,053 147,053 140,638
Non-marketable equity securities23,944 25,550 24,199
Other assets76,183 74,035 69,220
Total assets$9,553,908 9,450,600 9,120,742
Liabilities
Non-interest bearing deposits$2,049,476 2,041,852 1,887,004
Interest bearing deposits5,430,681 5,330,427 5,129,190
Securities sold under agreements to repurchase497,187 473,650 445,960
FHLB advances211,627 251,749 313,969
Other borrowed funds8,894 4,440 6,633
Subordinated debentures126,027 125,991 125,884
Accrued interest payable3,467 3,584 3,608
Other liabilities91,309 102,038 114,814
Total liabilities8,418,668 8,333,731 8,027,062
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 authorized766 765 762
Paid-in capital749,381 749,107 736,664
Retained earnings - substantially restricted389,505 374,379 350,933
Accumulated other comprehensive (loss) income(4,412) (7,382) 5,321
Total stockholders’ equity1,135,240 1,116,869 1,093,680
Total liabilities and stockholders’ equity$9,553,908 9,450,600 9,120,742


Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
Three Months ended
(Dollars in thousands, except per share data)March 31,
2017
December 31,
2016
March 31,
2016
Interest Income
Investment securities$21,939 21,645 23,883
Residential real estate loans7,918 8,463 8,285
Commercial loans49,970 49,750 44,503
Consumer and other loans7,801 7,901 7,710
Total interest income87,628 87,759 84,381
Interest Expense
Deposits4,440 4,497 4,795
Securities sold under agreements to repurchase382 325 318
Federal Home Loan Bank advances1,510 1,377 1,652
Federal funds purchased and other borrowed funds15 18 18
Subordinated debentures1,019 997 892
Total interest expense7,366 7,214 7,675
Net Interest Income80,262 80,545 76,706
Provision for loan losses1,598 1,139 568
Net interest income after provision for loan losses78,664 79,406 76,138
Non-Interest Income
Service charges and other fees15,633 15,645 14,681
Miscellaneous loan fees and charges980 1,234 1,021
Gain on sale of loans6,358 9,765 5,992
(Loss) gain on sale of investments(100) (757) 108
Other income2,818 2,127 2,450
Total non-interest income25,689 28,014 24,252
Non-Interest Expense
Compensation and employee benefits39,246 38,826 36,941
Occupancy and equipment6,646 6,692 6,676
Advertising and promotions1,973 2,125 2,125
Data processing3,124 3,409 3,373
Other real estate owned273 2,076 390
Regulatory assessments and insurance1,061 1,048 1,508
Core deposit intangibles amortization601 608 797
Other expenses10,420 11,933 10,546
Total non-interest expense63,344 66,717 62,356
Income Before Income Taxes41,009 40,703 38,034
Federal and state income tax expense9,754 9,662 9,352
Net Income$31,255 31,041 28,682



Glacier Bancorp, Inc.
Average Balance Sheets
Three Months ended
March 31, 2017 March 31, 2016
(Dollars in thousands)Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Average
Balance
Interest &
Dividends
Average
Yield/
Rate
Assets
Residential real estate loans$709,432 $7,918 4.46% $726,270 $8,285 4.56%
Commercial loans 14,372,299 51,335 4.76% 3,749,929 45,335 4.86%
Consumer and other loans672,480 7,801 4.70% 653,839 7,710 4.74%
Total loans 25,754,211 67,054 4.73% 5,130,038 61,330 4.81%
Tax-exempt investment securities 31,245,358 17,761 5.70% 1,352,683 19,383 5.73%
Taxable investment securities 41,857,335 10,575 2.28% 1,999,000 11,461 2.29%
Total earning assets8,856,904 95,390 4.37% 8,481,721 92,174 4.37%
Goodwill and intangibles159,089 154,790
Non-earning assets369,274 390,891
Total assets$9,385,267 $9,027,402
Liabilities
Non-interest bearing deposits$1,970,654 $ % $1,863,389 $ %
NOW and DDA accounts1,575,928 247 0.06% 1,465,181 293 0.08%
Savings accounts1,015,108 146 0.06% 863,764 104 0.05%
Money market deposit accounts1,490,198 565 0.15% 1,406,718 553 0.16%
Certificate accounts953,527 1,333 0.57% 1,071,055 1,564 0.59%
Wholesale deposits 5332,255 2,149 2.62% 335,126 2,281 2.74%
FHLB advances271,225 1,510 2.23% 308,040 1,652 2.12%
Repurchase agreements and other borrowed funds562,628 1,416 1.02% 521,565 1,228 0.95%
Total funding liabilities8,171,523 7,366 0.37% 7,834,838 7,675 0.39%
Other liabilities81,419 96,701
Total liabilities8,252,942 7,931,539
Stockholders’ Equity
Common stock766 761
Paid-in capital748,851 736,398
Retained earnings389,798 351,536
Accumulated other comprehensive (loss) income(7,090) 7,168
Total stockholders’ equity1,132,325 1,095,863
Total liabilities and stockholders’ equity$9,385,267 $9,027,402
Net interest income (tax-equivalent) $88,024 $84,499
Net interest spread (tax-equivalent) 4.00% 3.98%
Net interest margin (tax-equivalent) 4.03% 4.01%
_____________
1 Includes tax effect of $1.4 million and $832 thousand on tax-exempt municipal loan and lease income for the three months ended March 31, 2017 and 2016, 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 $6.1 million and $6.6 million on tax-exempt investment securities income for the three months ended March 31, 2017 and 2016, respectively.
4 Includes tax effect of $338 thousand and $352 thousand on federal income tax credits for the three months ended March 31, 2017 and 2016, respectively.
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts.

Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
Loans Receivable, by Loan Type % Change from
(Dollars in thousands)Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Dec 31,
2016
Mar 31,
2016
Custom and owner occupied construction$92,835 $86,233 $68,893 8% 35%
Pre-sold and spec construction68,736 66,184 59,220 4% 16%
Total residential construction161,571 152,417 128,113 6% 26%
Land development78,042 75,078 59,539 4% 31%
Consumer land or lots94,840 97,449 93,922 (3)% 1%
Unimproved land66,857 69,157 73,791 (3)% (9)%
Developed lots for operative builders13,046 13,254 12,973 (2)% 1%
Commercial lots26,639 30,523 23,558 (13)% 13%
Other construction272,184 257,769 166,378 6% 64%
Total land, lot, and other construction551,608 543,230 430,161 2% 28%
Owner occupied988,544 977,932 944,411 1% 5%
Non-owner occupied964,913 929,729 806,856 4% 20%
Total commercial real estate1,953,457 1,907,661 1,751,267 2% 12%
Commercial and industrial739,475 686,870 664,855 8% 11%
Agriculture411,094 407,208 372,616 1% 10%
1st lien839,387 877,893 841,848 (4)% %
Junior lien54,801 58,564 63,162 (6)% (13)%
Total 1-4 family894,188 936,457 905,010 (5)% (1)%
Multifamily residential162,636 184,068 197,267 (12)% (18)%
Home equity lines of credit405,309 402,614 379,866 1% 7%
Other consumer153,159 155,193 150,047 (1)% 2%
Total consumer558,468 557,807 529,913 % 5%
Other470,126 381,672 258,475 23% 82%
Total loans receivable, including loans held for sale 5,902,623 5,757,390 5,237,677 3% 13%
Less loans held for sale 1(25,649) (72,927) (40,484) (65)% (37)%
Total loans receivable$5,876,974 $5,684,463 $5,197,193 3% 13%
_________
1 Loans held for sale are primarily 1st lien 1-4 family loans.



Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification


Non-performing Assets, by Loan Type
Non-
Accrual
Loans
Accruing
Loans 90 Days
or More Past Due
Other
Real Estate
Owned
(Dollars in thousands)Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Mar 31,
2017
Mar 31,
2017
Mar 31,
2017
Custom and owner occupied construction$ 995
Pre-sold and spec construction227 226 227
Total residential construction227 226 995 227
Land development8,856 9,864 18,190 1,482 7,374
Consumer land or lots1,728 2,137 1,751 754 974
Unimproved land12,017 11,905 11,651 8,137 3,880
Developed lots for operative builders116 175 457 116
Commercial lots1,255 1,466 1,333 1,255
Total land, lot and other construction 23,972 25,547 33,382 10,373 13,599
Owner occupied17,956 18,749 12,130 16,109 148 1,699
Non-owner occupied3,194 3,426 4,354 3,194
Total commercial real estate21,150 22,175 16,484 19,303 148 1,699
Commercial and industrial4,466 5,184 6,046 4,298 65 103
Agriculture1,878 1,615 3,220 1,488 390
1st lien10,047 9,186 11,041 8,037 296 1,714
Junior lien1,335 1,167 1,111 1,286 49
Total 1-4 family11,382 10,353 12,152 9,323 345 1,714
Multifamily residential388 400 432 388
Home equity lines of credit6,008 5,494 5,432 5,136 232 640
Other consumer202 391 280 138 48 16
Total consumer6,210 5,885 5,712 5,274 280 656
Other1,800 1,800 1,800
Total$71,473 71,385 80,223 50,674 3,028 17,771

Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
Accruing 30-89 Days Delinquent Loans,
by Loan Type
% Change from
(Dollars in thousands)Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Dec 31,
2016
Mar 31,
2016
Custom and owner occupied construction$380 $1,836 $ (79)% n/m
Pre-sold and spec construction488 304 n/m 61%
Total residential construction868 1,836 304 (53)% 186%
Land development 154 198 (100)% (100)%
Consumer land or lots432 638 796 (32)% (46)%
Unimproved land938 1,442 1,284 (35)% (27)%
Commercial lots258 n/m n/m
Other construction7,125 n/m n/m
Total land, lot and other construction 8,753 2,234 2,278 292% 284%
Owner occupied6,686 2,307 4,552 190% 47%
Non-owner occupied405 1,689 1,466 (76)% (72)%
Total commercial real estate7,091 3,996 6,018 77% 18%
Commercial and industrial6,796 3,032 4,907 124% 38%
Agriculture3,567 1,133 659 215% 441%
1st lien7,132 7,777 5,896 (8)% 21%
Junior lien848 1,016 759 (17)% 12%
Total 1-4 family7,980 8,793 6,655 (9)% 20%
Multifamily Residential2,028 10 20,180% n/m
Home equity lines of credit703 1,537 2,528 (54)% (72)%
Other consumer1,317 1,180 607 12% 117%
Total consumer2,020 2,717 3,135 (26)% (36)%
Other57 1,866 40 (97)% 43%
Total$39,160 $25,617 $23,996 53% 63%
__________
n/m - not measurable


Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan Type
Charge-Offs Recoveries
(Dollars in thousands)Mar 31,
2017
Dec 31,
2016
Mar 31,
2016
Mar 31,
2017
Mar 31,
2017
Custom and owner occupied construction$ (1)
Pre-sold and spec construction(11) 786 (28) 11
Total residential construction(11) 785 (28) 11
Land development(33) (2,661) (100) 33
Consumer land or lots(57) (688) (240) 57
Unimproved land(96) (184) (34) 96
Developed lots for operative builders(5) (27) (12) 5
Commercial lots(2) 27 23 2
Total land, lot and other construction (193) (3,533) (363) 193
Owner occupied795 1,196 (27) 888 93
Non-owner occupied(1) 44 (1) 1
Total commercial real estate794 1,240 (28) 888 94
Commercial and industrial344 (370) 69 470 126
Agriculture(3) 50 (1) 3
1st lien(15) 487 47 44 59
Junior lien(16) 60 (15) 16
Total 1-4 family(31) 547 32 44 75
Multifamily residential 229 229
Home equity lines of credit12 611 179 75 63
Other consumer(11) 257 95 73 84
Total consumer1 868 274 148 147
Other1,043 2,642 10 2,679 1,636
Total$1,944 2,458 194 4,229 2,285


Visit our website at www.glacierbancorp.com

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

Source:Glacier Bancorp, Inc.