Published: January 26, 2012
Glacier Bancorp, Inc. Announces Results for Quarter Ended December 31, 2011
KALISPELL, Mont., Jan. 26, 2012 /PRNewswire/ --
HIGHLIGHTS:
-- Net earnings for the quarter increased 50 percent to $14.3 million and
diluted earnings per share increased 54 percent to $0.20 from the prior
year fourth quarter.
-- Excluding a goodwill impairment charge (net of tax) of $32.6 million,
net operating earnings for 2011 was $50.1 million, an increase of $7.8
million, or 18 percent from the prior year.
-- Non-performing assets of $213 million decreased $35.9 million, or 14
percent, from the prior quarter.
-- Net charged-off loans of $9.3 million for the quarter decreased $9.6
million, or 51 percent, from the prior quarter net charged-off loans.
-- Non-interest bearing deposits surpassed $1 billion for the first time.
-- Dividend declared of $0.13 per share during the quarter.
-- Announced the internal restructuring of the bank subsidiaries to bank
divisions.
Results Summary
Three Months ended Year ended
------------------ ----------
(Unaudited -Dollars in December December December December
thousands, 31 31 31 31
except per share data) 2011 2010 2011 2010
---------------------- ---- ---- ---- ----
Net earnings (GAAP) $14,348 9,593 17,471 42,330
Add goodwill impairment
charge, net of tax - - 32,613 -
--- --- ------ ---
Operating earnings (non-
GAAP) $14,348 9,593 50,084 42,330
======= ===== ====== ======
Diluted earnings per
share (GAAP) $0.20 0.13 0.24 0.61
Add goodwill impairment
charge, net of tax - - 0.46 -
--- --- ---- ---
Diluted earnings per
share (non-GAAP) $0.20 0.13 0.70 0.61
===== ==== ==== ====
Return on average assets
(annualized) (GAAP) 0.80% 0.58% 0.25% 0.67%
Add goodwill impairment
charge, net of tax -0.01% - 0.47% -
----- --- ---- ---
Return on average assets
(annualized) (non-GAAP) 0.79% 0.58% 0.72% 0.67%
==== ==== ==== ====
Return on average equity
(annualized) (GAAP) 6.69% 4.47% 2.04% 5.18%
Add goodwill impairment
charge, net of tax -0.24% - 3.74% -
----- --- ---- ---
Return on average equity
(annualized) (non-GAAP) 6.45% 4.47% 5.78% 5.18%
==== ==== ==== ====
Glacier Bancorp, Inc. (Nasdaq GS: GBCI) reported earnings for the current quarter of $14.3 million, an increase of $4.8 million, or 50 percent, compared to $9.6 million for the prior year fourth quarter. Diluted earnings per share for the current quarter was $0.20 per share, an increase of 54 percent from the prior year fourth quarter of $0.13 per share. "Although revenue growth is still challenging, we gained momentum in a number of fronts this past quarter." said Mick Blodnick, President and Chief Executive Officer. "Earnings continued to improve and credit costs decreased. However, those positions were partially offset by a steep increase in premium amortization which had a significant impact on our net interest income and consequently our net interest margin," Blodnick said.
Excluding the goodwill impairment charge, operating earnings for 2011 was $50.1 million versus $42.3 million for the prior year. Diluted operating earnings per share for 2011 was $0.70 per share, an increase of 15 percent from the prior year earnings per share of $0.61. Operating earnings is considered a non-GAAP financial measure and additional information regarding this measurement and reconciliation is provided herein. Including the goodwill impairment charge, net earnings was $17.5 million or $0.24 per share for the year ended December 31, 2011.
Non-GAAP Financial Measures
In addition to the results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), this press release contains certain non-GAAP financial measures. The Company believes that providing these non-GAAP financial measures provides investors with information useful in understanding the Company's financial performance, performance trends, and financial position. While the Company uses these non-GAAP measures in its analysis of the Company's performance, this information should not be considered an alternative to measurements required by GAAP.
The preceding results summary table provides a reconciliation of certain GAAP financial measures to non-GAAP financial measures. The reconciling item between the GAAP and non-GAAP financial measures was the third quarter of 2011 goodwill impairment charge (net of tax) of $32.6 million.
-- The goodwill impairment charge was $40.2 million with a tax benefit of
$7.6 million which resulted in a goodwill impairment charge (net of tax)
of $32.6 million. The tax benefit applied only to the $19.4 million of
goodwill associated with taxable acquisitions and was determined based
on the Company's marginal income tax rate of 38.9 percent.
-- The diluted earnings per share reconciling item was determined based on
the goodwill impairment charge (net of tax) divided by the weighted
average diluted shares of 71,915,073.
-- The goodwill impairment charge (net of tax) was included in determining
earnings for both the GAAP return on average assets and GAAP return on
average equity. The average assets used in the GAAP return on average
assets ratios were $7.128 billion and $6.923 billion for the three and
twelve month periods, respectively. The average assets used in the
non-GAAP return on average assets ratios were $7.161 billion and $6.931
billion for the three and twelve month periods, respectively. The
average equity used in the GAAP return on average equity ratios were
$850 million and $858 million for the three and twelve month periods,
respectively. The average equity used in the non-GAAP return on average
equity ratios were $883 million and $866 million for the three and
twelve month periods, respectively.
Asset Summary
Assets
$Change from $Change from
December September December September December
31, 30, 31, 30, 31,
(Unaudited
-
Dollars
in
thousands) 2011 2011 2010 2011 2010
---------- ---- ---- ---- ---- ----
Cash
on
hand
and
in
banks $104,674 98,151 71,465 6,523 33,209
Investment
securities
and
interest
bearing
cash
deposits 3,150,101 2,970,631 2,429,473 179,470 720,628
Loans
receivable
Residential
real
estate 516,807 518,786 632,877 (1,979) (116,070)
Commercial 2,295,927 2,336,744 2,451,091 (40,817) (155,164)
Consumer
and
other 653,401 668,052 665,321 (14,651) (11,920)
------- ------- ------- ------- -------
Loans
receivable 3,466,135 3,523,582 3,749,289 (57,447) (283,154)
Allowance
for
loan
and
lease
losses (137,516) (138,093) (137,107) 577 (409)
-------- -------- -------- --- ----
Loans
receivable,
net 3,328,619 3,385,489 3,612,182 (56,870) (283,563)
--------- --------- --------- ------- --------
Other
assets 604,512 588,418 646,167 16,094 (41,655)
------- ------- ------- ------ -------
Total
assets $7,187,906 7,042,689 6,759,287 145,217 428,619
========== ========= ========= ======= =======
Total assets at December 31, 2011 were $7.188 billion, which was $145 million, or 2 percent, greater than total assets of $7.043 billion at September 30, 2011, and $429 million, or 6 percent, greater than total assets of $6.759 billion at December 31, 2010.
Investment securities, including interest bearing deposits and federal funds sold, increased $179 million, or 6 percent, during the quarter and increased $721 million, or 30 percent, from December 31, 2010. During the year, the Company purchased investment securities to primarily offset the lack of loan growth and to maintain interest income. The investment securities purchased during the current quarter were predominately U.S. Agency Collateralized Mortgage Obligations ("CMO") with short weighted-average-lives. Investment securities represent 44 percent of total assets at December 31, 2011 versus 42 percent at September 30, 2011 and 36 percent at December 31, 2010.
At December 31, 2011, the loan portfolio was $3.466 billion, a decrease of $57.4 million, or 2 percent, during the quarter. Excluding net charge-offs of $9.3 million and loans transferred to other real estate owned of $14.8 million, loans decreased $33.3 million, or 1 percent, during the current quarter. During the year, the loan portfolio decreased $283 million, or 8 percent, from total loans of $3.749 billion at December 31, 2010. Excluding net charge-offs of $64.1 million and loans transferred to other real estate owned of $79.3 million, loans decreased $140 million, or 4 percent, from December 31, 2010. During the year, the largest decrease in dollars was in commercial loans which decreased $155 million, or 6 percent, from December 31, 2010. The largest percentage decrease was in real estate loans which decreased $116 million, or 18 percent, from December 31, 2010. The Company continues to reduce its exposure to land, lot and other construction loans which totaled $381 million as of December 31, 2011 and have decreased $168 million, or 31 percent, since the prior year end. The continued downturn in the economy and resulting lack of loan demand were the primary reasons for the decrease in the loan portfolio.
As a result of the third quarter 2011 goodwill impairment charge (net of tax) of $32.6 million, other assets decreased $41.7 million from December 31, 2010.
Credit Quality Summary
At or for At or for At or for
the the Nine the
Year ended Months ended Year ended
(Unaudited
-Dollars
in December 31, September December 31,
thousands) 2011 30, 2011 2010
---------- ------------ ---------- ------------
Allowance
for loan
and lease
losses
Balance at
beginning
of period $137,107 137,107 142,927
Provision
for loan
losses 64,500 55,825 84,693
Charge-
offs (69,366) (58,298) (93,950)
Recoveries 5,275 3,459 3,437
Balance at
end of
period $137,516 138,093 137,107
======== ======= =======
Other real
estate
owned $78,354 93,649 73,485
Accruing
loans 90
days or
more past
due 1,413 4,002 4,531
Non-
accrual
loans 133,689 151,753 192,505
Total non-
performing
assets
(1) $213,456 249,404 270,521
======== ======= =======
Non-
performing
assets as
a
percentage
of
subsidiary
assets 2.92% 3.49% 3.91%
Allowance
for loan
and lease
losses as
a
percentage
of non-
performing
loans 102% 89% 70%
Allowance
for loan
and lease
losses as
a
percentage
of total
loans 3.97% 3.92% 3.66%
Net
charge-
offs as a
percentage
of total
loans 1.85% 1.56% 2.41%
Accruing
loans
30-89
days past
due $49,086 21,130 45,497
( 1) As of December 31, 2011, non-performing assets
have not been reduced by U.S. government guarantees of
$2.7 million.
At December 31, 2011, the allowance for loan and lease losses ("allowance") was $138 million and remained stable compared to the prior quarter end and the prior year end. The allowance was 3.97 percent of total loans outstanding at December 31, 2011, compared to 3.66 percent at December 31, 2010. The allowance was 102 percent of non-performing loans at December 31, 2011, an increase from 89 percent at the prior quarter end and an increase from 70 percent from the prior year end. There was a sizeable decrease in non-performing assets during the current quarter due to a decrease in other real estate owned of $15.3 million, or 16 percent, and a decrease in non-performing loans of $20.7 million, or 13 percent. The momentum of reducing non-performing assets continued from the third quarter into the fourth quarter with each bank subsidiary actively managing the disposition of non-performing assets. Throughout the year, the Company has maintained an adequate allowance for loan losses while working to reduce non-performing assets. The improvement in the credit quality ratios during the current quarter and the year are a product of this effort.
The Company's early stage delinquencies (accruing loans 30-89 days past due) of $49.1 million at December 31, 2011, increased from the prior quarter early stage delinquencies of $21.1 million and the prior year end early stage delinquencies of $45.5 million. The increase in early stage delinquencies from the prior quarter was reflective of a 31 day month with 25 percent of early stage delinquencies exactly 30 days past due.
The largest category of non-performing assets was land, lot and other construction which was $117 million, or 55 percent, of non-performing assets at December 31, 2011. Included in this category was $56.2 million of land development assets and $35.8 million in unimproved land at December 31, 2011. Although land, lot and other construction assets have historically put pressure on the Company's credit quality, the Company has diligently reduced this category of non-performing assets by $38.1 million, or 25 percent, since the prior year end. Other notable categories of non-performing assets at December 31, 2011 were commercial real estate of $28.9 million and 1-4 family of $33.6 million, both categories of which have decreased since prior year end.
Credit Quality Trends and Provision for Loan Losses
Accruing
Non-
Loans 30-89 Performing
Days Past
Provision ALLL Due Assets to
as a as a Total
for Loan Net Percent Percent of Subsidiary
(Dollars in
thousands) Losses Charge-Offs of Loans Loans Assets
----------- ------ ----------- -------- ----- ------
Q4 2011 $8,675 9,252 3.97% 1.42% 2.92%
Q3 2011 17,175 18,877 3.92% 0.60% 3.49%
Q2 2011 19,150 20,184 3.88% 1.14% 3.68%
Q1 2011 19,500 15,778 3.86% 1.44% 3.78%
Q4 2010 27,375 24,525 3.66% 1.21% 3.91%
Q3 2010 19,162 26,570 3.47% 1.06% 4.03%
Q2 2010 17,246 19,181 3.58% 0.92% 4.01%
Q1 2010 20,910 20,237 3.58% 1.53% 4.19%
Another bright spot for the current quarter was the net charged-off loans which decreased to $9.3 million compared to $18.9 million for the prior quarter and $24.5 million for the fourth quarter of 2010. The current quarter provision for loan losses was $8.7 million, a decrease of $8.5 million from the prior quarter and a decrease of $18.7 million from the fourth quarter of 2010. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of additional provision for loan loss expense at each subsidiary bank. "The fourth quarter saw a continuation of some encouraging credit trends," Blodnick said. "Specifically, the progress we made reducing our non-performing assets this quarter and the reduction in credit costs were key areas of improvement. As we begin the new year, we expect to make additional headway reducing our problem assets ."
For additional information regarding credit quality and identification of the loan portfolio by regulatory classification, see the exhibits at the end of this press release.
Liability Summary
Liabilities
$Change from $Change from
December September December September December
31, 30, 31, 30, 31,
(Unaudited -
Dollars in
thousands) 2011 2011 2010 2011 2010
------------ ---- ---- ---- ---- ----
Non-
interest
bearing
deposits $1,010,899 996,265 855,829 14,634 155,070
Interest
bearing
deposits 3,810,314 3,774,263 3,666,073 36,051 144,241
Federal
funds
purchased - 45,000 - (45,000) -
Repurchase
agreements 258,643 301,820 249,403 (43,177) 9,240
FHLB
advances 1,069,046 889,053 965,141 179,993 103,905
Other
borrowed
funds 9,995 14,792 20,005 (4,797) (10,010)
Subordinated
debentures 125,275 125,239 125,132 36 143
Other
liabilities 53,507 44,869 39,500 8,638 14,007
------ ------ ------
Total
liabilities $6,337,679 6,191,301 5,921,083 146,378 416,596
========== ========= ========= ======= =======
At December 31, 2011, non-interest bearing deposits of $1.011 billion increased $14.6 million, or 1 percent, since September 30, 2011 and increased $155 million, or 18 percent, since December 31, 2010. The increase in non-interest bearing deposits during the year was driven by the continued growth in the number of personal and business customers, as well as existing customers retaining cash deposits for liquidity purposes due to the uncertainty in the current economic environment. Interest bearing deposits of $3.810 billion at December 31, 2011 included $170 million of reciprocal deposits (e.g., Certificate of Deposit Account Registry System deposits). Interest bearing deposits increased $36.1 million, or 1 percent, since September 30, 2011 and included a decrease of $38.7 million in wholesale deposits including reciprocal deposits. Interest bearing deposits increased $144 million, or 4 percent, from the prior year end and included an increase of $31.1 million in wholesale deposits, including reciprocal deposits. These deposit increases have been beneficial to the Company in funding the investment securities portfolio growth at low costs over the prior twelve months. Borrowings through repurchase agreements were $259 million at December 31, 2011, a decrease of $43.2 million, or 14 percent, from September 30, 2011 and an increase of $9.2 million, or 4 percent, from December 31, 2010.
To fund growth in the investment securities portfolio, the Company's level of borrowings has increased as needed to supplement deposit growth. Since the prior quarter end, Federal Home Loan Bank ("FHLB") advances have increased $180 million which was partially offset by the decrease in Federal funds purchased of $45.0 million. FHLB advances increased $104 million since December 31, 2010.
Stockholders' Equity Summary
Stockholders' Equity
$Change from $Change from
December September December September
31, 30, 31, 30, December 31,
(Unaudited -Dollars in
thousands, except per share
data) 2011 2011 2010 2011 2010
---------------------------- ---- ---- ---- ---- ----
Common equity $816,740 811,738 837,676 5,002 (20,936)
Accumulated other
comprehensive income 33,487 39,650 528 (6,163) 32,959
------ ------ --- ------ ------
Total stockholders' equity 850,227 851,388 838,204 (1,161) 12,023
Goodwill and core deposit
intangible, net (114,384) (114,941) (157,016) 557 42,632
-------- -------- -------- --- ------
Tangible stockholders'
equity $735,843 736,447 681,188 (604) 54,655
======== ======= ======= ==== ======
Stockholders' equity to
total assets 11.83% 12.09% 12.40%
Tangible stockholders'
equity to total tangible
assets 10.40% 10.63% 10.32%
Book value per common share $11.82 11.84 11.66 (0.02) 0.16
Tangible book value per
common share $10.23 10.24 9.47 (0.01) 0.76
Market price per share at
end of period $12.03 9.37 15.11 2.66 (3.08)
Total stockholders' equity and book value per share increased $12.0 million and $0.16 per share from the prior year end. The increase came primarily from accumulated other comprehensive income representing net unrealized gains or losses (net of tax) on the investment securities portfolio which was largely offset by the third quarter 2011 goodwill impairment charge (net of tax) of $32.6 million. Tangible stockholders' equity increased $54.7 million, or $0.76 per share since December 31, 2010 resulting in tangible stockholders' equity to tangible assets of 10.40 percent and tangible book value per share of $10.23 as of December 31, 2011.
Cash Dividend
On December 28, 2011, the Company's Board of Directors declared a cash dividend of $0.13 per share, payable January 19, 2012 to shareholders of record on January 10, 2012. For 2011, cash dividends declared were $0.52 per share. 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 December 31, 2011
Compared to September 30, 2011 and December 30, 2010
Revenue Summary
Three Months ended
------------------
December December
31, September 30, 31,
(Unaudited
-
Dollars
in
thousands) 2011 2011 2010
---------- ---- ---- ----
Net
interest
income
Interest
income $68,741 71,433 69,083
Interest
expense 10,197 11,297 12,420
------ ------ ------
Total
net
interest
income 58,544 60,136 56,663
Non-
interest
income
Service
charges,
loan
fees,
and
other
fees 12,134 12,536 12,178
Gain
on
sale
of
loans 7,026 5,121 9,842
Gain
on
sale
of
investments - 813 2,225
Other
income 2,857 2,466 1,715
----- ----- -----
Total
non-
interest
income 22,017 20,936 25,960
------ ------ ------
$80,561 81,072 82,623
======= ====== ======
Net
interest
margin
(tax-
equivalent) 3.74% 3.92% 3.91%
==== ==== ====
% Change % Change
$Change from $Change from from from
September September
30, December 31, 30, December 31,
(Unaudited
-
Dollars
in
thousands) 2011 2010 2011 2010
---------- ---- ---- ---- ----
Net
interest
income
Interest
income $(2,692) $(342) -4% 0%
Interest
expense (1,100) (2,223) -10% -18%
------ ------
Total
net
interest
income (1,592) 1,881 -3% 3%
Non-
interest
income
Service
charges,
loan
fees,
and
other
fees (402) (44) -3% 0%
Gain
on
sale
of
loans 1,905 (2,816) 37% -29%
Gain
on
sale
of
investments (813) (2,225) -100% -100%
Other
income 391 1,142 16% 67%
--- -----
Total
non-
interest
income 1,081 (3,943) 5% -15%
----- ------
$(511) $(2,062) -1% -2%
===== =======
Net Interest Income
The current quarter net interest income of $58.5 million decreased $1.6 million, or 3 percent, over the prior quarter and increased $1.9 million, or 3 percent, over the prior year fourth quarter. The current quarter interest income included $11.5 million of premium amortization (net of discount accretion) on CMOs, such amount an increase of $4.0 million over the prior quarter and an increase of $2.9 million over the prior year fourth quarter premium amortization. The decrease in interest expense of $1.1 million, or 10 percent, from the prior quarter and the decrease of $2.2 million, or 18 percent, in interest expense from the prior year fourth quarter was primarily driven by the decrease in interest rates on deposits as a result of the bank subsidiaries continued focus on reducing funding cost. The funding cost for the current quarter was 77 basis points compared to 87 basis points for the prior quarter and 103 basis points for the prior year fourth quarter.
The current quarter net interest margin as a percentage of earning assets, on a tax-equivalent basis, was 3.74 percent, a decrease of 18 basis points from the prior quarter net interest margin of 3.92 percent and a decrease of 17 basis points from the prior year fourth quarter net interest margin of 3.91. Such decreases were a result of the decrease in yields on earning assets, most of which was from lower yielding investment securities and the increase in premium amortization during the current quarter. The CMO premium amortization in the current quarter accounted for a 69 basis point reduction in the net interest margin compared to a 46 basis point reduction in the prior quarter and 56 basis point reduction in the net interest margin in the prior year fourth quarter. "The banks continue to do a great job of lowering their funding cost, but it was not enough to offset the contraction in asset yields and the increase in premium amortization," said Ron J. Copher, Chief Financial Officer. The current quarter net interest margin included a 2 basis points reduction from the reversal of interest on non-accrual loans.
Non-interest Income
Non-interest income for the current quarter totaled $22.0 million, an increase of $1.1 million over the prior quarter and a decrease of $3.9 million over the same quarter last year. Gain on sale of loans increased $1.9 million, or 37 percent, over the prior quarter and decreased $2.8 million, or 29 percent, over the same quarter last year. Such changes were the result of an increase in refinance activity during the fourth quarter of 2011, although at much lower levels than the refinance volume in the fourth quarter of 2010. There were no sales of investment securities during the current quarter which compared to an $813 thousand gain on sale of investment securities for the prior quarter and a $2.2 million gain in the prior year fourth quarter. Other income of $2.9 million for the current quarter was an increase of $391 thousand from the prior quarter and an increase of $1.1 million from the prior year fourth quarter. Included in other income was operating revenue from other real estate owned and gain on the sale of other real estate owned aggregating $822 thousand for the current quarter compared to $903 thousand for the prior quarter and $313 thousand for the prior year fourth quarter.
Non-interest Expense Summary
Three Months ended
------------------
December September
31, 30, December 31,
(Unaudited
-Dollars
in
thousands) 2011 2011 2010
----------- ---- ---- ----
Compensation,
employee
benefits
and
related
expense $21,311 21,607 22,485
Occupancy
and
equipment
expense 5,890 6,027 6,291
Advertising
and
promotions 1,588 1,762 1,683
Outsourced
data
processing
expense 849 740 852
Other real
estate
owned
expense 12,896 7,198 2,847
Federal
Deposit
Insurance
Corporation
premiums 2,010 1,638 2,123
Core
deposit
intangibles
amortization 557 599 758
Other
expense 10,029 8,568 8,697
------ ----- -----
Total non-
interest
expense
before
goodwill
impairment
charge 55,130 48,139 45,736
Goodwill
impairment
charge - 40,159 -
Total non-
interest
expense $55,130 88,298 45,736
======= ====== ======
% Change % Change
$Change from $Change from from from
September December September December
30, 31, 30, 31,
(Unaudited
-Dollars
in
thousands) 2011 2010 2011 2010
----------- ---- ---- ---- ----
Compensation,
employee
benefits
and
related
expense $(296) $(1,174) -1% -5%
Occupancy
and
equipment
expense (137) (401) -2% -6%
Advertising
and
promotions (174) (95) -10% -6%
Outsourced
data
processing
expense 109 (3) 15% 0%
Other real
estate
owned
expense 5,698 10,049 79% 353%
Federal
Deposit
Insurance
Corporation
premiums 372 (113) 23% -5%
Core
deposit
intangibles
amortization (42) (201) -7% -27%
Other
expense 1,461 1,332 17% 15%
----- -----
Total non-
interest
expense
before
goodwill
impairment
charge 6,991 9,394 15% 21%
Goodwill
impairment
charge (40,159) - -100% n/m
Total non-
interest
expense $(33,168) $9,394 -38% 21%
======== ======
Excluding the goodwill impairment charge, non-interest expense of $55.1 million for the current quarter increased by $7.0 million, or 15 percent, from the prior quarter and increased by $9.4 million, or 21 percent, from the prior year fourth quarter. The increases over the linked quarter and the prior year quarter were driven primarily by higher other real estate owned expense. Other real estate owned expense increased $5.7 million, or 79 percent, from the prior quarter and increased $10.0 million, or 353 percent, from the prior year fourth quarter. The current quarter other real estate owned expense of $12.9 million included $1.8 million of operating expense, $9.4 million of fair value write-downs, and $1.7 million of loss on sale of other real estate owned. Other real estate owned expense will fluctuate as the Company continues to work through non-performing loans and dispose of foreclosure properties.
Excluding other real estate owned expense, non-interest expense increased $1.3 million, or 3 percent, from prior quarter and decreased $655 thousand, or 2 percent, from the prior year fourth quarter. Compensation and employee benefits decreased by $296 thousand, or 1 percent, from the prior quarter and decreased $1.2 million, or 5 percent, from the prior year fourth quarter. Other expense increased $1.5 million, or 17 percent, from the prior quarter and increased $1.3 million, or 15 percent, from the same quarter last year as a result of changes in several categories.
Efficiency Ratio
The efficiency ratio for the current quarter was 50 percent compared to 51 percent for the prior year fourth quarter. The lower efficiency ratio was primarily the result of an increase in interest income from investment securities.
Operating Results for Years Ended December 31, 2011 Compared to December 31, 2010
Revenue Summary
Years ended December 31,
------------------------
(Unaudited -
Dollars in
thousands) 2011 2010 $Change % Change
------------ ---- ---- ------- --------
Net interest
income
Interest income $280,109 $288,402 $(8,293) -3%
Interest
expense 44,494 53,634 (9,140) -17%
------ ------ ------
Total net
interest
income 235,615 234,768 847 0%
Non-interest
income
Service
charges, loan
fees, and
other fees 48,113 47,946 167 0%
Gain on sale of
loans 21,132 27,233 (6,101) -22%
Gain on sale of
investments 346 4,822 (4,476) -93%
Other income 8,608 7,545 1,063 14%
----- ----- -----
Total non-
interest
income 78,199 87,546 (9,347) -11%
------ ------ ------
$313,814 $322,314 $(8,500) -3%
======== ======== =======
Net interest
margin (tax-
equivalent) 3.89% 4.21%
==== ====
Net Interest Income
Net interest income for 2011 remained stable compared to 2010. During 2011, interest income decreased $8.3 million, or 3 percent, while interest expense decreased $9.1 million, or 17 percent from 2010. The decrease in interest income from the prior year resulted from the increase in premium amortization (as interest rates declined) coupled with the reduction in loan balances, the combination of which put further pressure on earning asset yields. Interest income also continues to reflect the Company's purchase of a significant amount of investment securities over the course of several quarters at lower yields than the loans they replaced. Interest income included $35.8 million in premium amortization (net of discount accretion) on CMOs which was an increase of $18.1 million from the prior year. This increase was the result of both the increased purchases of CMOs combined with the continued refinance activity. The decrease in interest expense in 2011 was primarily attributable to the rate decreases on interest bearing deposits. The funding cost for 2011 was 87 basis points compared to 116 basis points for 2010.
The net interest margin decreased 32 basis points from 4.21 percent for 2010 to 3.89 for 2011. The reduction was attributable to a lower yield and volume of loans coupled with an increase in lower yielding investment securities and higher CMO premium amortization. The premium amortization in 2011 accounted for a 56 basis point reduction in the net interest margin compared to a 30 basis point reduction in the net interest margin for the same period last year.
Non-interest Income
Non-interest income of $78.2 million for 2011 decreased $9.3 million, or 11 percent, over non-interest income of $87.5 million for 2010. Gain on sale of loans for 2011 decreased $6.1 million, or 22 percent, from 2010 due to a significant reduction in refinance activity. Excluding the prior year $2.0 million gain on the sale of merchant card servicing portfolio, other income for 2011 increased $3.1 million, or 56 percent, over 2010 of which $1.7 million was from debit card income and $1.3 million was from the combination of operating revenue from other real estate owned and gain on sale of other real estate owned.
Non-interest Expense Summary
Years ended December 31,
------------------------
(Unaudited -Dollars
in thousands) 2011 2010 $Change % Change
------------------- ---- ---- ------- --------
Compensation,
employee benefits
and related expense $85,691 $87,728 $(2,037) -2%
Occupancy and
equipment expense 23,599 24,261 (662) -3%
Advertising and
promotions 6,469 6,831 (362) -5%
Outsourced data
processing expense 3,153 3,057 96 3%
Other real estate
owned expense 27,255 22,193 5,062 23%
Federal Deposit
Insurance
Corporation premiums 8,169 9,121 (952) -10%
Core deposit
intangibles
amortization 2,473 3,180 (707) -22%
Other expense 35,156 31,577 3,579 11%
------ ------ -----
Total non-interest
expense before
goodwill impairment
charge 191,965 187,948 4,017 2%
Goodwill impairment
charge 40,159 - 40,159 n/m
Total non-interest
expense $232,124 $187,948 $44,176 24%
======== ======== =======
Excluding the goodwill impairment charge, non-interest expense for 2011 increased by $4.0 million, or 2 percent, from 2010. Compensation and employee benefits for 2011 decreased $2.0 million, or 2 percent, and was the result of the reduction in full time equivalent employees. Occupancy and equipment expense decreased $662 thousand, or 3 percent, from the prior year. Other real estate owned expense of $27.3 million increased $5.1 million, or 23 percent, from the prior year. The other real estate owned expense for 2011 included $5.8 million of operating expenses, $16.3 million of fair value write-downs, and $5.2 million of loss on sale of other real estate owned. FDIC premium expense decreased $952 thousand, or 10 percent, from the prior year as a result of a change in the FDIC assessment calculation. Other expense increased $3.6 million, or 11 percent, from the prior year and was primarily driven by increases in debit card expenses and expenses associated with New Market Tax Credit investments.
Provision for loan losses
The Company provisioned slightly more than the amount of net charged-off loans during 2011. The provision for loan losses was $64.5 million for 2011, a decrease of $20.2 million, or 24 percent, from the prior year. Net charged-off loans during 2011 was $64.1 million, a decrease of $26.4 million from 2010. The largest category of net-charge offs was in land, lot and other construction loans which had net-charge offs of $31.3 million, or 49 percent of total net charged-off loans.
Efficiency Ratio
The efficiency ratio was 50 percent for both 2011 and 2010. There was a notable decrease in gain on sale of loans for 2011 compared to 2010 as refinance activity slowed during 2011. The decrease in gain on sale of loans was offset by increases in tax-exempt investment security income.
About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is a regional multi-bank holding company providing commercial banking services in 60 communities in Montana, Idaho, Utah, Washington, Wyoming and Colorado. Glacier Bancorp, Inc. is headquartered in Kalispell, Montana, and conducts its operations principally through eleven community bank subsidiaries. These subsidiaries include: six banks domiciled in Montana - Glacier Bank of Kalispell, First Security Bank of Missoula, Valley Bank of Helena, Big Sky Western Bank of Bozeman, Western Security Bank of Billings, and First Bank of Montana of Lewistown; two banks domiciled in Idaho - Mountain West Bank of Coeur d'Alene and Citizens Community Bank of Pocatello; two banks domiciled in Wyoming - 1st Bank of Evanston and First Bank of Wyoming; and one bank domiciled in Colorado - Bank of the San Juans of Durango.
On January 18, 2012, the Company announced that it plans to combine its eleven bank subsidiaries into a single commercial bank. The bank subsidiaries will operate as separate divisions of Glacier Bank under the same names, management teams and divisions as before the consolidation. As part of the consolidation, the Company will file with the appropriate federal and state bank regulators an application to merge the bank subsidiaries. The resulting bank Board of Directors and executive officers will be the Board of Directors and senior management team of Glacier Bancorp, Inc. The consolidation is expected to be completed in early second quarter 2012, following regulatory approvals.
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, including as a
result of declines in the housing and real estate markets in its
geographic areas;
-- increased loan delinquency rates;
-- the risks presented by a continued economic downturn, which could
adversely affect credit quality, loan collateral values, other real
estate owned values, investment values, liquidity and capital levels,
dividends and loan originations;
-- changes in market interest rates, which could adversely affect the
Company's net interest income and profitability;
-- legislative or regulatory changes 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 integration of acquisitions;
-- the goodwill the Company has recorded in connection with acquisitions
could become additionally impaired, which may have an adverse impact on
our earnings and capital;
-- reduced demand for banking products and services;
-- the risks presented by public stock market volatility, which could
adversely affect the market price of our common stock and our ability to
raise additional capital in the future;
-- competition from other financial services companies in our markets;
-- loss of services from the senior management team; 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 we later become aware that it is not likely to be achieved.
Visit our website at www.glacierbancorp.com
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial
Condition
December 31,
------------
(Dollars in thousands,
except per share data) 2011 2010
----------------------- ---- ----
Assets
Cash on hand and in banks $104,674 71,465
Interest bearing cash
deposits 23,358 33,626
------ ------
Cash and cash equivalents 128,032 105,091
Investment securities,
available-for-sale 3,126,743 2,395,847
Loans held for sale 95,457 76,213
Loans receivable 3,466,135 3,749,289
Allowance for loan and
lease losses (137,516) (137,107)
-------- --------
Loans receivable, net 3,328,619 3,612,182
Premises and equipment, net 158,872 152,492
Other real estate owned 78,354 73,485
Accrued interest receivable 34,961 30,246
Deferred tax asset 31,081 40,284
Core deposit intangible,
net 8,284 10,757
Goodwill 106,100 146,259
Non-marketable equity
securities 49,694 65,040
Other assets 41,709 51,391
Total assets $7,187,906 6,759,287
========== =========
Liabilities
Non-interest bearing
deposits $1,010,899 855,829
Interest bearing deposits 3,810,314 3,666,073
Securities sold under
agreements to repurchase 258,643 249,403
Federal Home Loan Bank
advances 1,069,046 965,141
Other borrowed funds 9,995 20,005
Subordinated debentures 125,275 125,132
Accrued interest payable 5,825 7,245
Other liabilities 47,682 32,255
------ ------
Total liabilities 6,337,679 5,921,083
--------- ---------
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 719 719
Paid-in capital 642,882 643,894
Retained earnings -
substantially restricted 173,139 193,063
Accumulated other
comprehensive income 33,487 528
------ ---
Total stockholders' equity 850,227 838,204
Total liabilities and
stockholders' equity $7,187,906 6,759,287
========== =========
Number of common stock
shares issued and
outstanding 71,915,073 71,915,073
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
Three Months ended December
31, Year ended December 31,
---------------------------- -----------------------
(Dollars in thousands,
except per share data) 2011 2010 2011 2010
----------------------- ---- ---- ---- ----
Interest Income
Residential real estate
loans $8,198 10,780 33,060 45,401
Commercial loans 31,629 34,452 130,249 143,861
Consumer and other loans 9,653 10,171 40,538 42,130
Investment securities,
available-for-sale 19,261 13,680 76,262 57,010
Total interest income 68,741 69,083 280,109 288,402
------ ------ ------- -------
Interest Expense
Deposits 5,379 7,903 25,269 35,598
Securities sold under
agreements to repurchase 320 2,440 1,353 1,607
Federal Home Loan Bank
advances 3,555 380 12,687 9,523
Federal funds purchased and
other borrowed funds 69 1,655 224 284
Subordinated debentures 874 42 4,961 6,622
Total interest expense 10,197 12,420 44,494 53,634
------ ------ ------ ------
Net Interest Income 58,544 56,663 235,615 234,768
Provision for loan losses 8,675 27,375 64,500 84,693
Net interest income after
provision for loan losses 49,869 29,288 171,115 150,075
------ ------ ------- -------
Non-Interest Income
Service charges and other
fees 11,093 10,923 44,194 43,040
Miscellaneous loan fees and
charges 1,041 1,255 3,919 4,906
Gain on sale of loans 7,026 9,842 21,132 27,233
Gain on sale of investments - 2,225 346 4,822
Other income 2,857 1,715 8,608 7,545
Total non-interest income 22,017 25,960 78,199 87,546
------ ------ ------ ------
Non-Interest Expense
Compensation, employee
benefits and related
expense 21,311 22,485 85,691 87,728
Occupancy and equipment
expense 5,890 6,291 23,599 24,261
Advertising and promotions 1,588 1,683 6,469 6,831
Outsourced data processing
expense 849 852 3,153 3,057
Other real estate owned
expense 12,896 2,847 27,255 22,193
Federal Deposit Insurance
Corporation premiums 2,010 2,123 8,169 9,121
Core deposit intangibles
amortization 557 758 2,473 3,180
Goodwill impairment charge - - 40,159 -
Other expense 10,029 8,697 35,156 31,577
------ ----- ------
Total non-interest expense 55,130 45,736 232,124 187,948
------ ------ ------- -------
Earnings Before Income
Taxes 16,756 9,512 17,190 49,673
Federal and state income
tax expense (benefit) 2,408 (81) (281) 7,343
Net Earnings $14,348 9,593 17,471 42,330
======= ===== ====== ======
Basic earnings per share $0.20 0.13 0.24 0.61
Diluted earnings per share $0.20 0.13 0.24 0.61
Dividends declared per
share $0.13 0.13 0.52 0.52
Average outstanding shares
-basic 71,915,073 71,915,073 71,915,073 69,657,980
Average outstanding shares
-diluted 71,915,073 71,915,073 71,915,073 69,660,345
Glacier Bancorp, Inc.
Average Balance Sheet
Three Months ended 12/31/11 Year ended 12/31/11
--------------------------- -------------------
Average Average
Average Interest & Yield/ Average Interest & Yield/
(Unaudited -
Dollars in
thousands) Balance Dividends Rate Balance Dividends Rate
-------------- ------- --------- ---- ------- --------- ----
Assets
Residential real
estate loans $602,142 8,198 5.45% $581,644 33,060 5.68%
Commercial loans 2,294,707 31,629 5.47% 2,364,115 130,249 5.51%
Consumer and other
loans 657,369 9,653 5.83% 680,032 40,538 5.96%
------- ----- ------- ------
Total loans and
loans held for
sale 3,554,218 49,480 5.52% 3,625,791 203,847 5.62%
Tax-exempt
investment
securities (1) 794,606 8,630 4.34% 705,548 31,420 4.45%
Taxable investment
securities (2) 2,301,708 10,631 1.85% 2,115,779 44,842 2.12%
--------- ------ --------- ------
Total earning
assets 6,650,532 68,741 4.10% 6,447,118 280,109 4.34%
--------- ------ --------- -------
Goodwill and
intangibles 114,678 145,623
Non-earning
assets 362,679 330,075
------- -------
Total assets $7,127,889 $6,922,816
========== ==========
Liabilities
NOW accounts $798,040 360 0.18% $775,383 1,906 0.25%
Savings accounts 398,146 89 0.09% 387,921 511 0.13%
Money market
deposit accounts 875,252 671 0.30% 875,127 3,667 0.42%
Certificate
accounts 1,094,490 3,686 1.34% 1,085,293 16,332 1.50%
Wholesale
deposits (3) 642,973 573 0.35% 622,808 2,853 0.46%
FHLB advances 965,918 3,555 1.46% 942,651 12,687 1.35%
Repurchase
agreements,
federal funds
purchased and
other borrowed
funds 455,438 1,263 1.10% 418,626 6,538 1.56%
------- ----- ------- -----
Total interest
bearing
liabilities 5,230,257 10,197 0.77% 5,107,809 44,494 0.87%
--------- ------ --------- ------
Non-interest
bearing deposits 1,006,744 923,039
Other
liabilities 40,403 34,343
------ ------
Total
liabilities 6,277,404 6,065,191
--------- ---------
Stockholders'
Equity
Common stock 719 719
Paid-in capital 642,881 643,140
Retained
earnings 175,959 195,301
Accumulated
other
comprehensive
income 30,926 18,465
------ ------
Total
stockholders'
equity 850,485 857,625
------- -------
Total liabilities
and
stockholders'
equity $7,127,889 $6,922,816
========== ==========
Net interest
income $58,544 $235,615
======= ========
Net interest
spread 3.33% 3.47%
Net interest
margin 3.49% 3.65%
Net interest
margin (tax-
equivalent) 3.74% 3.89%
(1) Excludes tax effect of $3,820,000 and $13,911,000 on tax-exempt investment security income
for the three months and year ended December 31, 2011, respectively.
(2) Excludes tax effect of $392,000 and $1,568,000 on investment security tax credits for the
three months and year ended December 31, 2011, respectively.
(3) Wholesale deposits include brokered deposits classified as NOW, money market deposit and
certificate accounts, including reciprocal deposits.
Glacier Bancorp, Inc.
Loan Portfolio - by Regulatory Classification - Unaudited
Loans Receivable by Bank % Change % Change
------------------------
Balance Balance Balance from from
(Dollars in
thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10
----------- -------- ------- -------- ------- --------
Glacier $797,530 799,292 866,097 0% -8%
Mountain West 707,442 706,589 821,135 0% -14%
First Security 575,254 584,172 571,925 -2% 1%
Western 272,681 280,683 305,977 -3% -11%
1st Bank 243,216 249,674 266,505 -3% -9%
Valley 195,395 192,531 183,003 1% 7%
Big Sky 229,640 232,053 249,593 -1% -8%
First Bank-WY 130,766 134,952 143,224 -3% -9%
Citizens 166,777 164,740 168,972 1% -1%
First Bank-MT 112,390 119,308 109,310 -6% 3%
San Juans 135,516 134,592 143,574 1% -6%
Eliminations and
other (5,015) (7,128) (3,813) -30% 32%
Loans held for
sale (95,457) (67,876) (76,213) 41% 25%
Total $3,466,135 3,523,582 3,749,289 -2% -8%
========== ========= =========
Land, Lot and Other Construction Loans
by Bank % Change % Change
---------------------------------------
Balance Balance Balance from from
(Dollars in
thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10
----------- -------- ------- -------- ------- --------
Glacier $101,429 108,291 148,319 -6% -32%
Mountain West 91,275 95,794 147,991 -5% -38%
First Security 46,899 51,531 72,409 -9% -35%
Western 20,216 20,444 29,535 -1% -32%
1st Bank 20,422 22,054 29,714 -7% -31%
Valley 13,755 14,046 12,816 -2% 7%
Big Sky 43,548 45,514 53,648 -4% -19%
First Bank-WY 6,924 7,363 12,341 -6% -44%
Citizens 7,905 9,095 12,187 -13% -35%
First Bank-MT 731 745 830 -2% -12%
San Juans 24,114 24,566 30,187 -2% -20%
Other 4,280 2,166 - 98% n/m
Total $381,498 401,609 549,977 -5% -31%
======== ======= =======
Land, Lot and Other Construction Loans by Bank, by Type at 12/31/11
-------------------------------------------------------------------
Consumer Developed Commercial
Land Land or Unimproved Lots for Developed Other
(Dollars in Operative
thousands) Development Lot Land Builders Lot Construction
----------- ----------- --- ---- --------- --- ------------
Glacier $37,516 23,026 25,581 6,978 4,889 3,439
Mountain West 12,771 49,785 5,076 12,485 3,283 7,875
First Security 19,915 5,961 15,013 3,447 698 1,865
Western 9,710 4,241 3,157 534 1,649 925
1st Bank 5,060 7,063 2,655 199 1,273 4,172
Valley 1,984 4,495 1,383 - 3,582 2,311
Big Sky 12,275 13,671 7,960 955 2,748 5,939
First Bank-WY 1,758 3,336 784 582 80 384
Citizens 1,977 1,005 1,910 - 621 2,392
First Bank-MT - 56 618 - 57 -
San Juans 915 12,757 1,937 - 7,741 764
Other - - - - - 4,280
Total $103,881 125,396 66,074 25,180 26,621 34,346
======== ======= ====== ====== ====== ======
Custom &
Residential Construction Loans by Bank,
by Type % Change % Change Owner Pre-Sold
----------------------------------------
Balance Balance Balance from from Occupied & Spec
(Dollars in
thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10 12/31/11 12/31/11
----------- -------- ------- -------- ------- -------- -------- --------
Glacier $31,239 31,846 34,526 -2% -10% $8,385 22,854
Mountain West 13,519 12,592 21,375 7% -37% 6,858 6,661
First Security 9,065 8,526 10,123 6% -10% 4,009 5,056
Western 819 1,378 1,350 -41% -39% 302 517
1st Bank 3,295 3,381 6,611 -3% -50% 1,628 1,667
Valley 3,696 3,405 4,950 9% -25% 3,361 335
Big Sky 10,494 10,607 11,004 -1% -5% 971 9,523
First Bank-WY 2,827 2,718 1,958 4% 44% 2,827 -
Citizens 7,010 7,946 9,441 -12% -26% 3,280 3,730
First Bank-MT 199 109 502 83% -60% 156 43
San Juans 12,070 6,897 7,018 75% 72% 3,645 8,425
Total $94,233 89,405 108,858 5% -13% $35,422 58,811
======= ====== ======= ======= ======
n/m - not measurable
Glacier Bancorp, Inc.
Loan Portfolio - by Regulatory Classification - Unaudited (continued)
Single Family Residential Loans by Bank, by
Type % Change % Change 1st Junior
--------------------------------------------
Balance Balance Balance from from Lien Lien
(Dollars in
thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10 12/31/11 12/31/11
----------- -------- ------- -------- ------- -------- -------- --------
Glacier $174,928 171,245 187,683 2% -7% $155,354 19,574
Mountain West 263,499 260,207 282,429 1% -7% 227,763 35,736
First Security 93,776 89,462 92,011 5% 2% 79,543 14,233
Western 42,124 40,388 42,070 4% 0% 40,216 1,908
1st Bank 53,385 54,647 59,337 -2% -10% 48,953 4,432
Valley 57,068 57,514 60,085 -1% -5% 47,820 9,248
Big Sky 31,275 29,196 32,496 7% -4% 28,253 3,022
First Bank-WY 12,195 12,728 13,948 -4% -13% 8,592 3,603
Citizens 23,722 22,304 19,885 6% 19% 22,487 1,235
First Bank-MT 7,737 8,322 8,618 -7% -10% 6,892 845
San Juans 24,254 27,550 29,124 -12% -17% 22,582 1,672
Total $783,963 773,563 827,686 1% -5% $688,455 95,508
======== ======= ======= ======== ======
Commercial Real Estate Loans by Bank, by
Type % Change % Change Owner Non-Owner
-----------------------------------------
Balance Balance Balance from from Occupied Occupied
(Dollars in
thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10 12/31/11 12/31/11
----------- -------- ------- -------- ------- -------- -------- --------
Glacier $225,548 219,948 224,215 3% 1% $113,421 112,127
Mountain West 193,495 190,744 206,732 1% -6% 120,162 73,333
First Security 259,396 263,478 227,662 -2% 14% 176,866 82,530
Western 99,900 108,688 103,443 -8% -3% 59,752 40,148
1st Bank 57,445 56,655 58,353 1% -2% 42,347 15,098
Valley 58,392 56,410 50,325 4% 16% 36,127 22,265
Big Sky 84,048 84,681 88,135 -1% -5% 55,399 28,649
First Bank-WY 23,986 25,105 27,609 -4% -13% 18,360 5,626
Citizens 60,754 59,387 61,737 2% -2% 36,716 24,038
First Bank-MT 19,891 17,183 17,492 16% 14% 9,440 10,451
San Juans 50,297 50,963 50,066 -1% 0% 28,541 21,756
Total $1,133,152 1,133,242 1,115,769 0% 2% $697,131 436,021
========== ========= ========= ======== =======
Consumer Loans by Bank, by Type % Change % Change Home Equity Other
-------------------------------
Line of
Balance Balance Balance from from Credit Consumer
(Dollars in
thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10 12/31/11 12/31/11
----------- -------- ------- -------- ------- -------- -------- --------
Glacier $134,725 138,174 150,082 -2% -10% $120,794 13,931
Mountain West 63,902 65,800 70,304 -3% -9% 56,515 7,387
First Security 66,549 68,188 71,677 -2% -7% 42,946 23,603
Western 37,657 40,441 43,081 -7% -13% 26,695 10,962
1st Bank 35,567 37,174 40,021 -4% -11% 14,006 21,561
Valley 24,634 23,703 23,745 4% 4% 14,663 9,971
Big Sky 26,229 27,473 27,733 -5% -5% 22,515 3,714
First Bank-WY 22,504 22,658 24,217 -1% -7% 13,372 9,132
Citizens 27,273 28,081 29,040 -3% -6% 22,973 4,300
First Bank-MT 7,093 7,513 8,005 -6% -11% 3,402 3,691
San Juans 13,331 13,800 14,848 -3% -10% 12,348 983
Total $459,464 473,005 502,753 -3% -9% $350,229 109,235
======== ======= ======= ======== =======
Glacier Bancorp, Inc.
Credit Quality Summary - Unaudited
Non- Accruing Other
Loans 90
Non-performing Assets, by Loan Type Accruing Days Real Estate
-----------------------------------
or More Past
Balance Balance Balance Loans Due Owned
(Dollars
in
thousands) 12/31/11 9/30/11 12/31/10 12/31/11 12/31/11 12/31/11
---------- -------- ------- -------- -------- -------- --------
Custom
and
owner
occupied
construction $1,531 2,440 2,575 783 - 748
Pre-
sold
and
spec
construction 5,506 10,375 16,071 1,098 - 4,408
Land
development 56,152 73,550 83,989 31,184 - 24,968
Consumer
land
or
lots 8,878 10,128 12,543 3,942 27 4,909
Unimproved
land 35,771 39,925 44,116 19,194 713 15,864
Developed
lots
for
operative
builders 9,001 4,195 7,429 7,084 - 1,917
Commercial
lots 2,032 2,211 3,110 297 - 1,735
Other
construction 5,133 4,832 3,837 4,305 - 828
Commercial
real
estate 28,828 32,287 36,978 19,181 - 9,647
Commercial
and
industrial 12,855 14,982 13,127 12,213 342 300
Agriculture
loans 7,010 7,115 5,253 6,391 - 619
1-4
family 33,589 39,934 34,791 21,602 292 11,695
Home
equity
lines
of
credit 6,361 6,622 4,805 5,749 37 575
Consumer 360 322 446 217 2 141
Other 449 486 1,451 449 - -
--- --- ----- --- --- ---
Total $213,456 249,404 270,521 133,689 1,413 78,354
======== ======= ======= ======= ===== ======
Non-Accrual
&
Accruing Accruing
Accruing Loans 30-89 Days Past Due and Loans Loans Other
Non-Performing Assets, by Bank 30-89 Days 90 Days or Real Estate
------------------------------
More Past
Balance Balance Balance Past Due Due Owned
(Dollars
in
thousands) 12/31/11 9/30/11 12/31/10 12/31/11 12/31/11 12/31/11
---------- -------- ------- -------- -------- -------- --------
Glacier $69,324 74,783 75,869 10,176 49,042 10,106
Mountain
West 60,593 58,264 83,872 16,402 25,117 19,074
First
Security 59,713 54,310 59,770 13,648 28,339 17,726
Western 7,651 8,652 11,237 1,937 448 5,266
1st
Bank 18,158 19,096 16,686 3,693 9,302 5,163
Valley 2,444 1,951 1,900 863 728 853
Big Sky 19,795 20,911 21,739 410 11,549 7,836
First
Bank-
WY 8,965 10,335 9,901 321 6,910 1,734
Citizens 5,992 5,906 8,000 1,175 3,126 1,691
First
Bank-
MT 397 116 553 119 278 -
San
Juans 3,180 5,059 6,549 342 263 2,575
GORE 6,330 11,151 19,942 - - 6,330
Total $262,542 270,534 316,018 49,086 135,102 78,354
======== ======= ======= ====== ======= ======
Provision
for
Provision for Year-to-Date ALLL
Year-to- Ended as a
Allowance for Loan and Lease Losses Date 12/31/11 Percent
-----------------------------------
Balance Balance Balance Ended Over Net of Loans
(Dollars
in
thousands) 12/31/11 9/30/11 12/31/10 12/31/11 Charge-Offs 12/31/11
---------- -------- ------- -------- -------- ----------- --------
Glacier $35,336 35,854 34,701 16,800 1.0 4.51%
Mountain
West 36,167 35,437 35,064 30,100 1.0 5.38%
First
Security 22,457 21,898 19,046 9,950 1.5 3.96%
Western 7,320 7,459 7,606 550 0.7 2.87%
1st
Bank 8,572 8,998 10,467 1,950 0.5 3.55%
Valley 4,216 4,227 4,651 - - 2.23%
Big Sky 8,860 8,883 9,963 2,350 0.7 3.90%
First
Bank-
WY 2,180 2,712 2,527 700 0.7 1.67%
Citizens 5,325 5,272 5,502 1,300 0.9 3.43%
First
Bank-
MT 2,894 3,022 3,020 - - 2.58%
San
Juans 4,189 4,331 4,560 800 0.7 3.09%
Total $137,516 138,093 137,107 64,500 1.0 3.97%
======== ======= ======= ======
Glacier Bancorp, Inc.
Credit Quality Summary - Unaudited (continued)
Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Bank
----------------------
Balance Balance Balance Charge-Offs Recoveries
(Dollars
in
thousands) 12/31/11 9/30/11 12/31/10 12/31/11 12/31/11
---------- -------- ------- -------- -------- --------
Glacier $16,165 14,547 24,327 17,579 1,414
Mountain
West 28,997 25,627 47,487 31,535 2,538
First
Security 6,539 4,398 7,296 6,971 432
Western 836 697 2,106 1,010 174
1st
Bank 3,845 3,294 2,578 4,287 442
Valley 435 424 216 460 25
Big
Sky 3,453 3,180 4,048 3,581 128
First
Bank-
WY 1,047 315 605 1,067 20
Citizens 1,477 1,330 1,363 1,562 85
First
Bank-
MT 126 (2) 149 141 15
San
Juans 1,171 1,029 338 1,173 2
Total $64,091 54,839 90,513 69,366 5,275
======= ====== ====== ====== =====
Net Charge-Offs, Year-to-Date
Period Ending, By Loan Type
---------------------------
Balance Balance Balance Charge-Offs Recoveries
(Dollars
in
thousands) 12/31/11 9/30/11 12/31/10 12/31/11 12/31/11
---------- -------- ------- -------- -------- --------
Residential
construction $4,275 4,950 7,147 5,168 893
Land,
lot
and
other
construction 31,306 26,341 51,580 33,162 1,856
Commercial
real
estate 7,676 6,875 10,181 8,278 602
Commercial
and
industrial 7,871 7,365 5,612 8,424 553
Agriculture
loans 134 134 - 136 2
1-4
family 8,694 6,082 9,897 9,260 566
Home
equity
lines
of
credit 3,261 2,343 4,496 3,698 437
Consumer 615 454 951 914 299
Other 259 295 649 326 67
---
Total $64,091 54,839 90,513 69,366 5,275
======= ====== ====== ====== =====
SOURCE Glacier Bancorp, Inc.
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