KALISPELL, Mont., July 23 /PRNewswire-FirstCall/ -- HIGHLIGHTS: --
Net earnings for the quarter of $10.652 million and year-to-date of
$26.431 million. -- Diluted earnings per share of $.17 for the
quarter and $.43 year-to-date. -- Deposit growth of $92 million for
the quarter, or 11 percent annualized. -- Tangible stockholders'
equity increased $135 million, up 34 percent from last year's
second quarter. -- Net interest income increased $8 million, or 16
percent, from last year's second quarter and increased $20 million,
or 20 percent, from last year's first six months. -- Non-interest
income increased $4 million, or 23 percent, from last year's second
quarter and increased $5 million, or 15 percent, from last year's
first six months. -- Net interest margin (tax equivalent) of 4.87
percent, up 12 basis points from last year's second quarter. --
Efficiency ratio of 52 percent for the first six months, an
improvement of 2 percentage points from last year's first half.
Earnings Summary ($ in thousands, except per share Three months Six
months data) ended June 30, ended June 30, --------------
-------------- (unaudited) (unaudited) (unaudited) (unaudited) 2009
2008 2009 2008 ---- ---- ---- ---- Net earnings $10,652 $18,459
$26,431 $35,858 Diluted earnings per share $0.17 $0.34 $0.43 $0.66
Return on average assets (annualized) 0.77% 1.51% 0.96% 1.48%
Return on average equity (annualized) 6.18% 13.51% 7.72% 13.25%
Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net earnings of
$10.652 million for the second quarter, a decrease of $7.807
million, or 42 percent, from the $18.459 million for the second
quarter of 2008. Diluted earnings per share of $.17 for the quarter
decreased 50 percent from the diluted earnings per share of $.34
for the same quarter of 2008. Annualized return on average assets
and return on average equity for the second quarter were .77
percent and 6.18 percent, which compares with prior year returns
for the second quarter of 1.51 percent and 13.51 percent,
respectively. Net earnings for the six months ended June 30, 2009
were $26.431 million, which is a decrease of $9.427 million, or 26
percent, over the prior year. Diluted earnings per share of $.43,
is a decrease of 35 percent from the $.66 earned in 2008. "Our
operating income set an all time record during the second quarter
and first six months of 2009," said Mick Blodnick, President and
Chief Executive Officer. "However, net results again were
negatively impacted as we continued to increase the provision for
loan loss and grow the loan loss reserve to cover higher levels of
non-performing assets and net charge-offs," Blodnick said.
"Offsetting the higher provision was strong non-interest income, a
stable net interest margin and excellent expense control if the
FDIC special assessment is excluded." As reflected in the following
table, total assets at June 30, 2009 were $5.638 billion, which is
$84 million, or 2 percent, greater than the total assets of $5.554
billion at December 31, 2008 and an increase of $611 million, or 12
percent, over the total assets of $5.028 billion at June 30, 2008.
$ change $ change from from June 30, December 31, June 30, December
June Assets ($ in 2009 2008 2008 31, 30, thousands) (unaudited)
(audited) (unaudited) 2008 2008 ----------- --------- -----------
---- ---- Cash on hand and in banks $100,773 $125,123 $123,545
$(24,350) (22,772) Investments, interest bearing deposits, FHLB
stock, FRB stock, and Fed Funds 1,081,160 1,000,224 800,206 80,936
280,954 Loans: Real estate 836,917 838,375 746,193 (1,458) 90,724
Commercial 2,591,149 2,575,828 2,396,098 15,321 195,051 Consumer
and other 700,693 715,990 678,661 (15,297) 22,032 ----------
---------- --------- ------- ------- Total loans 4,128,759
4,130,193 3,820,952 (1,434) 307,807 Allowance for loan and lease
losses (97,374) (76,739) (60,807) (20,635) (36,567) ----------
---------- --------- ------- ------- Total loans net of allowance
for loan and lease losses 4,031,385 4,053,454 3,760,145 (22,069)
271,240 ---------- ---------- --------- ------- ------- Other
assets 425,106 375,169 343,972 49,937 81,134 ---------- ----------
--------- ------- ------- Total Assets $5,638,424 $5,553,970
5,027,868 $84,454 610,556 ========== ========== ========= =======
======= At June 30, 2009, total loans were $4.129 billion, a
decrease of $1 million, over total loans of $4.130 billion at
December 31, 2008. Commercial loans increased $15 million, or 59
basis points, during the first six months of 2009. Consumer loans,
which are primarily comprised of home equity loans, decreased by
$15 million, or 2 percent, while real estate loans decreased $1
million, or 17 basis points, from the fourth quarter of 2008. Total
loans increased $308 million, or 8 percent from June 30, 2008.
Since June 30, 2008, commercial loans increased $195 million, or 8
percent, real estate loans grew by $91 million, or 12 percent, and
consumer loans increased $22 million, or 3 percent. Investment
securities, including interest bearing deposits in other financial
institutions and federal funds sold, have increased $281 million,
or 35 percent, from June 30, 2008, and have increased $81 million,
or 8 percent, from December 31, 2008. Investment securities
represented 19 percent of total assets at June 30, 2009 versus 16
percent of total assets at June 30, 2008. $ change $ change from
from Liabilities June 30, December 31, June 30, December June ($ in
2009 2008 2008 31, 30, thousands) (unaudited) (audited) (unaudited)
2008 2008 ----------- --------- ----------- ---- ---- Non-interest
bearing deposits $754,844 $747,439 $778,786 $7,405 (23,942)
Interest bearing deposits 2,631,599 2,515,036 2,347,137 116,563
284,462 Advances from Federal Home Loan Bank 613,478 338,456
658,211 275,022 (44,733) Federal Reserve Bank Discount Window
587,000 914,000 144,000 (327,000) 443,000 Securities sold under
agreements to repurchase and other borrowed funds 197,971 196,731
387,648 1,240 (189,677) Other liabilities 43,711 44,331 43,884
(620) (173) Subordinated debentures 120,157 121,037 118,559 (880)
1,598 ------- ------- ------- ---- ----- Total liabilities
$4,948,760 $4,877,030 4,478,225 $71,730 470,535 ==========
========== ========= ======= ======= As of June 30, 2009,
non-interest bearing deposits decreased $24 million, or 3 percent,
since June 30, 2008, and increased $7 million, or 1 percent, since
December 31, 2008. Interest bearing deposits increased $117
million, or 5 percent from December 31, 2008. Since June 30, 2008,
interest bearing deposits increased $284 million, or 12 percent,
resulting from the banks' continued focus on attracting and
retaining low cost deposits. Federal Home Loan Bank ("FHLB")
advances at June 30, 2009 decreased $45 million, or 7 percent, from
June 30, 2008, and increased $275 million, or 81 percent, from
December 31, 2008. Federal Reserve Bank Discount Window borrowings
decreased $327 million and increased $443 million from December 31,
2008 and June 30, 2008, respectively. Repurchase agreements and
other borrowed funds were $198 million at June 30, 2009, a decrease
of $190 million, or 49 percent, from June 30, 2008, and an increase
of $1 million from December 31, 2008. Included in this latter
category are U.S. Treasury Tax and Loan funds of $5 million at June
30, 2009, a decrease of $204 million from June 30, 2008, and a
decrease of $947 thousand from December 31, 2008. Stockholders'
equity $ change $ change ($ in from from thousands June 30,
December 31, June 30, December June except per 2009 2008 2008 31,
30, share data) (unaudited) (audited) (unaudited) 2008 2008
----------- --------- ----------- ---- ---- Common equity $692,046
$678,183 $551,718 $13,863 140,328 Accumulated other comprehensive
loss (2,382) (1,243) (2,075) (1,139) (307) ------ ------ ------
------ ---- Total stockholders' equity 689,664 676,940 549,643
12,724 140,021 Core deposit intangible, net, and goodwill (157,736)
(159,765) (152,717) 2,029 (5,019) -------- -------- -------- -----
------ Tangible stockholders' equity $531,928 $517,175 $396,926
$14,753 135,002 ======== ======== ======== ======= =======
Stockholders' equity to total assets 12.23% 12.19% 10.93% Tangible
stockholders' equity to total tangible assets 9.71% 9.59% 8.14%
Book value per common share $11.21 $11.04 $10.18 $0.17 1.03
Tangible book value per common share $8.65 $8.43 $7.35 $0.22 1.30
Market price per share at end of period $14.77 $19.02 $15.99
$(4.25) (1.22) Total stockholders' equity and book value per share
amounts have increased $140 million and $1.03 per share,
respectively, from June 30, 2008, the result of earnings retention
and exercised stock options, stock issued in connection with the
Bank of the San Juans acquisition, and $94 million in net proceeds
from the Company's November 2008 equity offering of 6,325,000
shares of common stock at a price of $15.50 per share. Tangible
stockholders' equity has increased $135 million, or 34 percent
since June 30, 2008, with tangible stockholders' equity at 9.71
percent of total tangible assets at June 30, 2009, up from 8.14
percent at June 30, 2008. Accumulated other comprehensive income
(loss), representing net unrealized gains or losses (net of tax) on
investment securities designated as available for sale, decreased
$307 thousand from June 30, 2008. "One real bright spot has been
the growth in capital this past quarter and year," Blodnick said.
"Every capital ratio increased further from the already strong
build over the past four years." Operating Results for Three Months
Ended June 30, 2009 Compared to March 31, 2009 and June 30, 2008
Revenue summary ($ in thousands) Three months ended
------------------ June 30, March 31, June 30, 2009 2009 2008
(unaudited) (unaudited) (unaudited) ----------- -----------
----------- Net interest income Interest income $74,420 $75,532
$74,573 Interest expense 13,939 15,154 22,273 ------- -------
------- Net interest income 60,481 60,378 52,300 Non-interest
income Service charges, loan fees, and other fees 11,377 10,179
12,223 Gain on sale of loans 9,071 6,150 4,245 Other income 870
1,048 913 ------- ------- ------- Total non-interest income 21,318
17,377 17,381 ------- ------- ------- $81,799 $77,755 $69,681
======= ======= ======= Tax equivalent net interest margin 4.87%
4.92% 4.75% ======= ======= ======= $ change $ change % change %
change ($ in thousands) from from from from March 31, June 30,
March 31, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net
interest income Interest income $(1,112) $(153) -1% 0% Interest
expense $(1,215) $(8,334) -8% -37% ------- ------- Net interest
income 103 8,181 0% 16% Non-interest income Service charges, loan
fees, and other fees 1,198 (846) 12% -7% Gain on sale of loans
2,921 4,826 47% 114% Other income (178) (43) -17% -5% -------
------- Total non-interest income 3,941 3,937 23% 23% -------
------- $4,044 $12,118 5% 17% ======= ======= Net Interest Income
Net interest income for the quarter increased $8 million, or 16
percent, with interest expense decreasing $8 million, or 37
percent, over the same period in 2008. Interest income for the
current quarter decreased $1 million, or 1 percent, with interest
expense also decreasing $1 million, or 8 percent, compared to the
prior quarter. The decrease in total interest expense is primarily
attributable to rate decreases in interest bearing deposits and
lower cost borrowings. The net interest margin as a percentage of
earning assets, on a tax equivalent basis, was 4.87 percent which
is 5 basis points lower than the 4.92 percent achieved for the
prior quarter and 12 basis points higher than the 4.75 percent
result for the second quarter of 2008. "The strong net interest
margin for the current quarter reflects the banks' maintaining
lower funding costs in a highly competitive environment," said Ron
Copher, Chief Financial Officer. Non-interest Income Non-interest
income for the quarter increased $4 million, or 23 percent, from
the prior quarter, and increased $4 million, or 23 percent, over
the same period in 2008. Gain on sale of loans increased $3
million, or 47 percent, for the quarter and increased $5 million,
or 114 percent, over the same period last year, primarily the
result of increased refinancing of residential loans originated and
sold in the secondary market. Fee income increased $1 million, or
12 percent, during the quarter, compared to the decrease of $846
thousand, or 7 percent, over the same period last year.
Non-interest expense summary Three months ended ------------------
($ in thousands) June 30, March 31, June 30, 2009 2009 2008
(unaudited) (unaudited) (unaudited) ----------- -----------
----------- Compensation and employee benefits $20,710 $21,944
$20,967 Occupancy and equipment expense 5,611 5,895 5,116
Advertising and promotion expense 1,722 1,724 1,833 Outsourced data
processing 680 671 647 Core deposit intangibles amortization 762
774 767 Other expenses 13,478 8,618 7,113 ------- ------- -------
Total non-interest expense $42,963 $39,626 $36,443 ======= =======
======= $ change $ change % change % change ($ in thousands) from
from from from March 31, June 30, March 31, June 30, 2009 2008 2009
2008 ---- ---- ---- ---- Compensation and employee benefits
$(1,234) $(257) -6% -1% Occupancy and equipment expense (284) 495
-5% 10% Advertising and promotion expense (2) (111) 0% -6%
Outsourced data processing 9 33 1% 5% Core deposit intangibles
amortization (12) (5) -2% -1% Other expenses 4,860 6,365 56% 89%
------ ------ Total non-interest expense $3,337 $6,520 8% 18%
====== ====== Non-interest Expense Non-interest expense increased
by $3 million, or 8 percent from the prior quarter. Compensation
and employee benefits decreased $1 million, or 6 percent, from
prior quarter and $257 thousand, or 1 percent from prior year's
second quarter. The current quarter compensation and employee
benefits included significant reductions in bonuses and employee
benefits tied to Company performance. The current quarter decrease
in compensation and employee benefits also reflects decreased
staffing with the number of full-time equivalent employees
decreasing from 1,610 to 1,597 during the quarter, and increasing
from 1,537 since the end of the 2008 second quarter. The increase
of $5 million in other expenses includes increases of $2.7 million
in FDIC insurance premiums, $362 thousand in outside legal,
accounting, and audit firm expense, $1.5 million of loss from sales
of other real estate owned, and $288 thousand in expenses
associated with repossessed assets. Non-interest expense increased
by $7 million, or 18 percent from the same quarter of 2008,
including a $6 million, or 89 percent increase in other expenses.
The increase in other expenses includes $3.5 million in FDIC
insurance premiums, $749 thousand in outside legal, accounting, and
audit firm expense, $1.8 million of loss from sales of other real
estate owned, and $451 thousand of expense associated with
repossessed assets. Occupancy and equipment expense has increased
$495 thousand, or 10 percent, since June 30, 2008, reflecting the
cost of additional branch locations and facility upgrades.
Advertising and promotion expense decreased $111 thousand, or 6
percent, from the same quarter of 2008. In the second quarter of
2009, the FDIC increased the deposit insurance premiums for all
financial institutions and also imposed a special premium insurance
assessment based on financial institutions' total assets as of June
30, 2009. Of the increase in FDIC insurance premiums, $2.5 million
is attributable to the second quarter asset-based special
assessment. The Company expects the heightened FDIC deposit
insurance premiums to continue, and the FDIC has indicated that
another special assessment is probable in the fourth quarter of the
current year. Efficiency Ratio Excluding the $2.5 million special
FDIC insurance assessment, the efficiency ratio (non-interest
expense / net interest income plus non-interest income) was 49
percent for the quarter, compared to 52 percent for the 2008 second
quarter, a three percentage point improvement. "The banks continue
to do an excellent job of monitoring and controlling operating
expenses," said Copher. Credit quality June 30, March 31, December
31, June 30, information 2009 2009 2008 2008 ($ in thousands)
(unaudited) (unaudited) (audited) (unaudited) Allowance for loan
and lease losses - beginning of period $76,739 76,739 54,413 54,413
Provision 40,855 15,715 28,480 7,542 Acquisition - - 2,625 -
Charge-offs (21,246) (8,994) (9,839) (1,498) Recoveries 1,026 317
1,060 350 ----- --- ----- --- Allowance for loan and lease losses -
end of period $97,374 83,777 76,739 60,807 ======= ====== ======
====== Real estate and other assets owned $47,424 18,985 11,539
$6,523 Accruing loans 90 days or more overdue 10,086 4,439 8,613
3,700 Non-accrual loans 116,362 92,288 64,301 19,674 ------- ------
------ ------ Total non- performing assets $173,872 115,712 84,453
$29,897 Allowance for loan and lease losses as a percentage of
non-performing assets 56% 72% 91% 203% Non-performing assets as a
percentage of total bank assets 3.06% 1.97% 1.46% 0.58% Allowance
for loan and lease losses as a percentage of total loans 2.36%
2.01% 1.86% 1.59% Net charge-offs as a percentage of total loans
(0.490%) (0.209%) (0.213%) (0.030%) Accruing loans 30-89 days or
more overdue $62,637 66,534 54,787 $35,017 Allowance for Loan and
Lease Losses and Non-performing Assets At June 30, 2009, the
allowance for loan and lease losses was $97.374 million, an
increase of $37 million, or 60 percent, from a year ago. The
current quarter provision for loan loss expense was $25 million, an
increase of $20 million from the same quarter in 2008. Charged-off
loans for the current quarter exceeded recoveries of previously
charged-off loans by $12 million. Loan portfolio growth,
composition, average loan size, credit quality considerations, and
other environmental factors will determine the level of additional
provision expense. Most of the Company's non-performing assets are
secured by real estate. Based on the most current information
available to management, including updated appraisals where
appropriate, the Company believes the value of the underlying real
estate collateral is adequate to minimize significant charge-offs
or loss to the Company. For collateral dependent loans, impairment
is measured by the fair value of the collateral. The allowance was
2.36 percent of total loans outstanding at June 30, 2009, up from
2.01 percent at the prior quarter end, and up from 1.59 percent at
June 30, 2008. The allowance was 56 percent of non-performing
assets at June 30, 2009, down from 72 percent for the prior quarter
end and down from 203 percent a year ago. Non-performing assets as
a percentage of total bank assets at June 30, 2009 were at 3.06
percent, up from 1.97 percent as of prior quarter end, and up from
.58 percent at June 30, 2008. "During the quarter we saw a
significant increase in non-performing assets as two large credits
totaling $35 million were placed in Other Real Estate Owned and
non-accrual status. Net charge-offs as a percent of loans for the
first half of 2009 were .49 percent or .99 percent annualized,"
Blodnick said. "Hopefully we can keep net charge-offs at that level
or lower through the remaining half of the year." Operating Results
for Six Months Ended June 30, 2009 Compared to June 30, 2008
Revenue summary ($ in thousands) Six months ended ----------------
$ change % change June 30, June 30, from from 2009 2008 June 30,
June 30, (unaudited) (unaudited) 2008 2008 ----------- -----------
---- ---- Net interest income Interest income $149,952 $150,589
$(637) 0% Interest expense 29,093 49,660 $(20,567) -41% --------
-------- ------- Net interest income 120,859 100,929 19,930 20%
Non-interest income Service charges, loan fees, and other fees
21,556 23,184 (1,628) -7% Gain on sale of loans 15,221 8,125 7,096
87% Gain on sale of investments - 248 (248) -100% Other income
1,918 2,086 (168) -8% -------- -------- ------- Total non-interest
income 38,695 33,643 5,052 15% -------- -------- ------- $159,554
$134,572 $24,982 19% ======== ======== ======= Tax equivalent net
interest margin 4.90% 4.65% ======== ======== Net Interest Income
Net interest income for the six months increased $20 million, or 20
percent, over the same period in 2008. Total interest income
decreased $637 thousand, or 42 basis points, while total interest
expense decreased $21 million, or 41 percent. The decrease in
interest expense is primarily attributable to the rate decreases on
interest bearing deposits and lower cost borrowings. The net
interest margin as a percentage of earning assets, on a tax
equivalent basis, was 4.90 percent, an increase of 25 basis points
from the 4.65 percent for the same period in 2008. Non-interest
Income Total non-interest income increased $5 million, or 15
percent in 2009. Fee income for the first half of 2009 decreased $2
million, or 7 percent, over the first half of 2008. Gain on sale of
loans increased $7 million, or 87 percent, from the first six
months of last year, primarily the result of increased refinancing
of residential loans originated and sold in the secondary market.
Gain from the sale of investments during the first half of 2008
included a first quarter mandatory redemption of a portion of Visa,
Inc. shares from its initial public offering, and the sale of
shares in Principal Financial Group (PFG). Non-interest expense
summary Six months ended ---------------- $ change % change ($ in
thousands) June 30, June 30, from from 2009 2008 June 30, June 30,
(unaudited) (unaudited) 2008 2008 ----------- ----------- ---- ----
Compensation and employee benefits $42,654 $42,064 $590 1%
Occupancy and equipment expense 11,506 10,249 1,257 12% Advertising
and promotion expense 3,446 3,372 74 2% Outsourced data processing
1,351 1,314 37 3% Core deposit intangibles amortization 1,536 1,546
(10) -1% Other expenses 22,096 13,511 8,585 64% ------- -------
------- Total non-interest expense $82,589 $72,056 $10,533 15%
======= ======= ======= Non-interest Expense Non-interest expense
increased by $11 million, or 15 percent, from the first six months
of 2008. Compensation and employee benefit expense increased $590
thousand, or 1 percent, from the first half of 2008, due to the
increased number of employees added since June 30, 2008, which was
partially offset by the reductions in bonuses and employee
benefits. Occupancy and equipment expense increased $1 million, or
12 percent, reflecting the cost of additional locations and
facility upgrades. Advertising and promotion expense increased $74
thousand, or 2 percent, from the first half of 2008. Other expenses
increased $9 million, or 64 percent, since June 30, 2008. The
increase in other expenses includes $4.4 million in FDIC insurance
premiums, $1.1 million in outside legal, accounting, and audit firm
expense, $2 million loss from sales of other real estate owned, and
$641 thousand expense associated with repossessed assets. Of the
increase in FDIC insurance premiums year-to-date, $2.5 million is
attributable to the second quarter asset-based special assessment.
The efficiency ratio (non-interest expense/net interest income plus
non-interest income) was 52 percent for the first half of 2009
compared favorably to 54 percent for the first six months of 2008.
Allowance for Loan and Lease Losses The provision for loan loss
expense was $41 million for the first six months of 2009, an
increase of $33 million, or 442 percent, from the same period in
2008. Net charged-off loans during the six months ended June 30,
2009 was $20 million, an increase of $19 million from the same
period in 2008. Pending Acquisition On February 9, 2009, the
Company announced a definitive agreement (the "agreement") to
acquire First Company and its subsidiary First National Bank &
Trust, a community bank based in Powell, Wyoming. First National
Bank & Trust has three branch locations in Powell, Cody, and
Lovell, Wyoming. As of June 30, 2009, First National Bank &
Trust had total assets of $272 million. Upon completion of the
transaction, which is subject to regulatory approval and other
customary conditions of closing, First National Bank & Trust
will become a wholly-owned subsidiary of the Company. The agreement
was recently extended to September 15, 2009. The transaction is now
targeted to close in the third quarter. Merger of Bank Subsidiaries
On February 1, 2009, First National Bank of Morgan merged into 1st
Bank resulting in operations being conducted under the 1st Bank
charter. Prior period activity of Morgan has been combined and
included in 1st Bank's historical results. The merger was accounted
for as a combination of two wholly-owned subsidiaries without
acquisition accounting. Cash Dividend On June 24, 2009, the board
of directors declared a cash dividend of $.13 per share, payable
July 16, 2009 to shareholders of record on July 7, 2009. About
Glacier Bancorp, Inc. Glacier Bancorp, Inc. is a regional
multi-bank holding company providing commercial banking services in
57 communities in Montana, Idaho, Utah, Washington, Wyoming and
Colorado. Glacier Bancorp, Inc. is headquartered in Kalispell,
Montana, and conducts its operations principally through ten
community bank subsidiaries. These subsidiaries include six Montana
banks: Glacier Bank of Kalispell, First Security Bank of Missoula,
Valley Bank of Helena, Big Sky Western Bank of Bozeman, Western
Security Bank of Billings, First Bank of Montana of Lewistown; as
well as Mountain West Bank in Idaho, Utah and Washington; 1st Bank
in Wyoming and Utah, Citizens Community Bank in Idaho, and Bank of
the San Juans in Colorado. 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 in
credit quality; -- increased loan delinquency rates; -- the risks
presented by a continued economic slowdown, which could adversely
affect credit quality, loan collateral values, investment values,
liquidity levels, and loan originations; -- changes in market
interest rates, which could adversely affect our net interest
income and profitability; -- legislative or regulatory changes that
adversely affect our business or our ability to complete pending or
prospective future acquisitions; -- costs or difficulties related
to the integration of acquisitions; -- reduced demand for banking
products and services; -- the risks presented by public stock
market volatility, which could adversely affect the Company's stock
value and the ability to raise capital in the future; --
competition from other financial services companies in our markets;
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 http://www.glacierbancorp.com/ GLACIER BANCORP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION ($ in
thousands except per share data) June 30, December 31, June 30,
2009 2008 2008 ---------- --------- --------- (unaudited) (audited)
(unaudited) Assets: Cash on hand and in banks $100,773 125,123
123,545 Federal funds sold 62,405 6,480 135 Interest bearing cash
deposits 24,608 3,652 26,654 Investment securities,
available-for-sale 994,147 990,092 773,417 Net loans receivable:
Real estate loans 836,917 838,375 746,193 Commercial loans
2,591,149 2,575,828 2,396,098 Consumer and other loans 700,693
715,990 678,661 Allowance for loan and lease losses (97,374)
(76,739) (60,807) ---------- --------- --------- Total loans, net
4,031,385 4,053,454 3,760,145 ---------- --------- ---------
Premises and equipment, net 135,902 133,949 125,398 Real estate and
other assets owned, net 47,424 11,539 6,523 Accrued interest
receivable 30,346 28,777 28,128 Deferred tax asset 14,890 14,292
3,624 Core deposit intangible, net 11,477 13,013 12,416 Goodwill
146,259 146,752 140,301 Other assets 38,808 26,847 27,582
---------- --------- --------- Total assets $5,638,424 5,553,970
5,027,868 ========== ========= ========= Liabilities and
stockholders' equity: Non-interest bearing deposits $754,844
747,439 778,786 Interest bearing deposits 2,631,599 2,515,036
2,347,137 Advances from Federal Home Loan Bank 613,478 338,456
658,211 Securities sold under agreements to repurchase 180,779
188,363 176,211 Federal Reserve Discount Window 587,000 914,000
144,000 U.S. Treasury Tax & Loan 5,120 6,067 209,298 Other
borrowed funds 12,072 2,301 2,139 Accrued interest payable 8,421
9,751 11,922 Deferred tax liability - - - Subordinated debentures
120,157 121,037 118,559 Other liabilities 35,290 34,580 31,962
---------- --------- --------- Total liabilities 4,948,760
4,877,030 4,478,225 ---------- --------- --------- Preferred
shares, $.01 par value per share. 1,000,000 shares authorized None
issued or outstanding - - - Common stock, $.01 par value per share.
117,187,500 shares authorized 615 613 540 Paid-in capital 495,223
491,794 380,161 Retained earnings - substantially restricted
196,208 185,776 171,017 Accumulated other comprehensive loss
(2,382) (1,243) (2,075) ---------- --------- --------- Total
stockholders' equity 689,664 676,940 549,643 ---------- ---------
--------- Total liabilities and stockholders' equity $5,638,424
5,553,970 5,027,868 ========== ========= ========= Number of shares
outstanding 61,519,808 61,331,273 53,985,813 Book value of equity
per share 11.21 11.04 10.18 GLACIER BANCORP, INC. CONSOLIDATED
STATEMENT OF OPERATIONS ($ in thousands except per share data)
Three months ended Six months ended June 30, June 30,
------------------- ----------------- 2009 2008 2009 2008 -------
------ ------ ------ (unaudited) (unaudited) (unaudited)
(unaudited) Interest income: Real estate loans $13,871 12,399
28,212 24,991 Commercial loans 37,597 41,100 75,563 83,633 Consumer
and other loans 11,142 11,790 22,481 23,897 Investment securities
and other 11,810 9,284 23,696 18,068 ------- ------ ------ ------
Total interest income 74,420 74,573 149,952 150,589 ------- ------
------ ------ Interest expense: Deposits 9,433 13,474 19,567 30,343
Federal Home Loan Bank advances 1,852 4,821 3,671 10,539 Securities
sold under agreements to repurchase 409 808 1,003 2,149
Subordinated debentures 1,676 1,853 3,583 3,726 Other borrowed
funds 569 1,317 1,269 2,903 ------- ------ ------ ------ Total
interest expense 13,939 22,273 29,093 49,660 ------- ------ ------
------ Net interest income 60,481 52,300 120,859 100,929 Provision
for loan losses 25,140 5,042 40,855 7,542 ------- ------ ------
------ Net interest income after provision for loan losses 35,341
47,258 80,004 93,387 ------- ------ ------ ------ Non-interest
income: Service charges and other fees 10,215 10,599 19,234 20,070
Miscellaneous loan fees and charges 1,162 1,624 2,322 3,114 Gain on
sale of loans 9,071 4,245 15,221 8,125 Gain on sale of investments
- - - 248 Other income 870 913 1,918 2,086 ------- ------ ------
------ Total non-interest income 21,318 17,381 38,695 33,643
------- ------ ------ ------ Non-interest expense: Compensation,
employee benefits and related expenses 20,710 20,967 42,654 42,064
Occupancy and equipment expense 5,611 5,116 11,506 10,249
Advertising and promotion expense 1,722 1,833 3,446 3,372
Outsourced data processing expense 680 647 1,351 1,314 Core deposit
intangibles amortization 762 767 1,536 1,546 Other expenses 13,478
7,113 22,096 13,511 ------- ------ ------ ------ Total non-interest
expense 42,963 36,443 82,589 72,056 ------- ------ ------ ------
Earnings before income taxes 13,696 28,196 36,110 54,974 Federal
and state income tax expense 3,044 9,737 9,679 19,116 -------
------ ------ ------ Net earnings $10,652 18,459 26,431 35,858
======= ====== ====== ====== Basic earnings per share 0.17 0.35
0.43 0.67 Diluted earnings per share 0.17 0.34 0.43 0.66 Dividends
declared per share 0.13 0.13 0.26 0.26 Return on average assets
(annualized) 0.77% 1.51% 0.96% 1.48% Return on average equity
(annualized) 6.18% 13.51% 7.72% 13.25% Average outstanding shares -
basic 61,515,946 53,971,220 61,489,422 53,910,414 Average
outstanding shares - diluted 61,518,289 54,151,290 61,493,266
54,084,193 AVERAGE BALANCE SHEET For the three months ended 6-30-09
--------------------------- (Unaudited - $ in thousands) Interest
Average Average and Yield/ ASSETS Balance Dividends Rate -------
--------- ---- Real Estate Loans $846,969 13,871 6.55% Commercial
Loans 2,616,008 37,597 5.76% Consumer and Other Loans 701,320
11,142 6.37% ---------- ------- Total Loans 4,164,297 62,610 6.03%
Tax-Exempt Investment Securities (1) 452,801 5,739 5.07% Other
Investment Securities 575,647 6,071 4.22% ---------- ------- Total
Earning Assets 5,192,745 74,420 5.75% ------- Goodwill and Core
Deposit Intangible 158,163 Other Non-Earning Assets 225,056
---------- TOTAL ASSETS $5,575,964 ========== LIABILITIES AND
STOCKHOLDERS' EQUITY NOW Accounts $537,496 466 0.35% Savings
Accounts 297,648 251 0.34% Money Market Accounts 754,475 2,073
1.10% Certificates of Deposit 1,010,597 6,643 2.64% FHLB Advances
367,407 1,852 2.02% Repurchase Agreements and Other Borrowed Funds
1,153,122 2,654 0.92% ---------- ------- Total Interest Bearing
Liabilities 4,120,745 13,939 1.36% ------- Non-interest Bearing
Deposits 727,798 Other Liabilities 36,076 ---------- Total
Liabilities 4,884,619 ---------- Common Stock 615 Paid-In Capital
495,084 Retained Earnings 196,569 Accumulated Other Comprehensive
(Loss) Gain (923) ---------- Total Stockholders' Equity 691,345
---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,575,964
========== Net Interest Income $60,481 ======= Net Interest Spread
4.39% Net Interest Margin 4.67% Net Interest Margin (Tax
Equivalent) 4.87% Return on Average Assets (annualized) 0.77%
Return on Average Equity (annualized) 6.18% AVERAGE BALANCE SHEET
For the six months ended 6-30-09 -------------------------
(Unaudited - $ in thousands) Interest Average Average and Yield/
ASSETS Balance Dividends Rate ------- --------- ---- Real Estate
Loans $851,484 28,212 6.63% Commercial Loans 2,604,811 75,563 5.85%
Consumer and Other Loans 704,273 22,481 6.44% ---------- --------
Total Loans 4,160,568 126,256 6.12% Tax-Exempt Investment
Securities (1) 439,118 11,070 5.04% Other Investment Securities
581,338 12,626 4.34% ---------- -------- Total Earning Assets
5,181,024 149,952 5.84% -------- Goodwill and Core Deposit
Intangible 158,749 Other Non-Earning Assets 226,680 ----------
TOTAL ASSETS $5,566,453 ========== LIABILITIES AND STOCKHOLDERS'
EQUITY NOW Accounts $522,805 1,024 0.39% Savings Accounts 292,579
522 0.36% Money Market Accounts 757,151 4,485 1.19% Certificates of
Deposit 979,225 13,536 2.79% FHLB Advances 352,183 3,671 2.10%
Repurchase Agreements and Other Borrowed Funds 1,210,902 5,855
0.98% ---------- -------- Total Interest Bearing Liabilities
4,114,845 29,093 1.43% -------- Non-interest Bearing Deposits
723,070 Other Liabilities 37,896 ---------- Total Liabilities
4,875,811 ---------- Common Stock 615 Paid-In Capital 494,344
Retained Earnings 193,900 Accumulated Other Comprehensive (Loss)
Gain 1,783 ---------- Total Stockholders' Equity 690,642 ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,566,453 ==========
Net Interest Income $120,859 ======== Net Interest Spread 4.41% Net
Interest Margin 4.70% Net Interest Margin (Tax Equivalent) 4.90%
Return on Average Assets (annualized) 0.96% Return on Average
Equity (annualized) 7.72% (1) Excludes tax effect of $4,901,000 and
$2,541,000 on non-taxable investment security income for the year
to date and quarter ended June 30, 2009, respectively. DATASOURCE:
Glacier Bancorp, Inc. CONTACT: Michael J. Blodnick,
+1-406-751-4701, or Ron J. Copher, +1-406-751-7706, both of Glacier
Bancorp, Inc. Web Site: http://www.glacierbancorp.com/
Copyright