KALISPELL, Mont., Jan. 28 /PRNewswire-FirstCall/ -- HIGHLIGHTS: -- Net earnings for the quarter of $9.474 million and year-to-date of $34.374 million. -- Diluted earnings per share of $0.15 for the quarter and $0.56 year-to-date. -- Acquisition of First National Bank & Trust completed as of October 2, 2009 resulting in a one-time $3.5 million bargain purchase gain. -- Provision for loan losses increased to $37 million for the quarter and $125 million for the year bringing the allowance for loan losses to 3.46 percent of loans. -- Net interest income increased $6 million, or 10 percent, from last year's fourth quarter and increased $33 million, or 15 percent, from last year's twelve months. -- Net interest margin (tax equivalent) of 4.82 percent, up 12 basis points, from last year's twelve months. -- Efficiency ratio of 51 percent for the year, an improvement of 1 percentage point from last year, excluding non-recurring items. Results Summary ($ in thousands, except Three months Twelve months per share data) ended December 31, ended December 31, ------------------ ------------------ (unaudited) (unaudited) (unaudited) (audited) 2009 2008 2009 2008 ---- ---- ---- ---- Net earnings $9,474 $17,014 $34,374 $65,657 Diluted earnings per share $0.15 $0.29 $0.56 $1.19 Return on average assets (annualized) 0.62% 1.27% 0.60% 1.31% Return on average equity (annualized) 5.43% 11.02% 4.97% 11.63% Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net earnings of $9.474 million for the fourth quarter, a decrease of $7.540 million, or 44 percent, from the $17.014 million net earnings reported for the fourth quarter of 2008. The diluted earnings per share of $0.15 for the quarter represented a 48 percent decrease from the diluted earnings per share of $0.29 for the same quarter of 2008. Annualized return on average assets and return on average equity for the fourth quarter were 0.62 percent and 5.43 percent, which compares with prior year returns for the fourth quarter of 1.27 percent and 11.02 percent, respectively. Net earnings for the twelve months ended December 31, 2009 were $34.374 million, which is a decrease of $31.283 million, or 48 percent, over the prior year. Diluted earnings per share of $0.56, is a decrease of 53 percent from the $1.19 earned in 2008. "It was great to finally complete the transaction with First Company and its subsidiary First National Bank & Trust. We are excited to have the Nelson family and all the staff become a part of Glacier Bancorp, Inc. We expect it to be an excellent addition," said Mick Blodnick, President and Chief Executive Officer. "The transaction however did make for a noisy quarter as the bargain purchase and security gains elevated our earnings." Blodnick said. "Although our earnings were much better than the previous quarter, we were still disappointed with the results. One bright spot however continues to be our pre-tax pre-provision earnings." The results of operations and financial condition include the acquisition of First Company and its subsidiary First National Bank & Trust ("First National") from October 2, 2009. Cash of $621 thousand and 99,995 shares of the Company's common stock were issued in the acquisition. The Company also contributed $15.3 million in capital to the bank. The acquisition resulted in a $3.5 million one-time bargain purchase gain which was based on the estimated fair value of the assets acquired and liabilities assumed. The following table provides information on the fair value of selected classifications of assets and liabilities acquired. First National (Unaudited - $ in thousands) Bank & Trust ------------ Total assets $272,280 Investments, including fed funds 60,802 Loans 160,538 Non-interest bearing deposits 39,221 Interest bearing deposits 197,308 Borrowed funds 26,686 As reflected in the following table, total assets at December 31, 2009 were $6.192 billion, which is $638 million, or 11 percent, greater than the total assets of $5.554 billion at December 31, 2008. December 31, December 31, $ Change From 2009 2008 December 31, Assets ($ in thousands) (unaudited) (audited) 2008 ----------- --------- ---- Cash on hand and in banks $120,731 $125,123 $(4,392) Investments, interest bearing deposits, FHLB stock, FRB stock, and fed funds 1,596,238 1,000,224 596,014 Loans: Real estate 797,626 838,375 (40,749) Commercial 2,613,218 2,575,828 37,390 Consumer and other 719,401 715,990 3,411 ------- ------- ----- Total loans 4,130,245 4,130,193 52 Allowance for loan and lease losses (142,927) (76,739) (66,188) -------- ------- ------- Total loans net of allowance for loan and lease losses 3,987,318 4,053,454 (66,136) --------- --------- ------- Other assets 487,508 375,169 112,339 ------- ------- ------- Total Assets $6,191,795 $5,553,970 $637,825 ========== ========== ======== At December 31, 2009, total loans were $4.130 billion, an increase of $84 million over total loans of $4.046 billion at September 30, 2009 and an increase of $52 thousand over total loans at December 31, 2008. Real estate loans increased $10 million, or 1 percent, during the fourth quarter. Consumer loans, which are primarily comprised of home equity loans, increased by $19 million, or 3 percent, and commercial loans increased by $55 million, or 2 percent, during the fourth quarter of 2009. Excluding the loan growth of $153 million attributable to the acquisition of First National, the loan portfolio decreased organically 4 percent for 2009 and 2 percent during the fourth quarter, primarily the result of decreased loan demand. Investment securities, including interest bearing deposits in other financial institutions and federal funds sold, have increased $334 million, or 26 percent, from September 30, 2009 and increased $596 million, or 60 percent, from December 31, 2008. The increase in investments for the fourth quarter includes $112 million for First National. Investment securities represented 26 percent of total assets at December 31, 2009 versus 18 percent of total assets at December 31, 2008. The Company continues to purchase investment securities when loan originations slow. December 31, December 31, $ Change From 2009 2008 December 31, Liabilities ($ in thousands) (unaudited) (audited) 2008 ----------- --------- ---- Non-interest bearing deposits $810,550 $747,439 $63,111 Interest bearing deposits 3,289,602 2,515,036 774,566 Advances from Federal Home Loan Bank 790,367 338,456 451,911 Federal Reserve Bank Discount Window 225,000 914,000 (689,000) Securities sold under agreements to repurchase and other borrowed funds 226,251 196,731 29,520 Other liabilities 39,147 44,331 (5,184) Subordinated debentures 124,988 121,037 3,951 ------- ------- ----- Total liabilities $5,505,905 $4,877,030 $628,875 ========== ========== ======== As of December 31, 2009, non-interest bearing deposits increased $9 million, or 1 percent, since September 30, 2009 and increased $63 million, or 8 percent, since December 31, 2008. Interest bearing deposits of $3.290 billion at December 31, 2009 includes wholesale deposits of $351 million, of which $151 million are issued through the Certificate of Deposit Account Registry System. Interest bearing deposits increased $480 million, or 17 percent from September 30, 2009, of which $117 million is from wholesale deposits. Interest bearing deposits increased $775 million, or 31 percent from December 31, 2008, of which $321 million is from wholesale deposits. The increase in non-interest bearing deposits and interest bearing deposits includes $41 million and $206 million, respectively, for First National as of year end. "One of our strategic initiatives in 2009 was to focus on deposit growth and capture additional market share," Blodnick said. "The banks did an excellent job of not only growing their deposits, but at the same time controlling their cost of funds." Federal Home Loan Bank ("FHLB") advances increased $150 million, or 23 percent, from September 30, 2009 and increased $452 million, or 134 percent, from December 31, 2008. Federal Reserve Bank Discount Window borrowings decreased $145 million, or 39 percent, from September 30, 2009 and decreased $689 million, or 75 percent, from December 31, 2008. Repurchase agreements and other borrowed funds were $226 million at December 31, 2009, an increase of $668 thousand from September 30, 2009 and an increase of $30 million, or 15 percent, from December 31, 2008. Stockholders' equity December 31, December 31, $ Change From ($ in thousands except per 2009 2008 December 31, share data) (unaudited) (audited) 2008 ----------- --------- ---- Common equity $686,238 $678,183 $8,055 Accumulated other comprehensive loss (348) (1,243) 895 ---- ------ --- Total stockholders' equity 685,890 676,940 8,950 Goodwill and core deposit intangible, net (160,196) (159,765) (431) -------- -------- ---- Tangible stockholders' equity $525,694 $517,175 $8,519 ======== ======== ====== Stockholders' equity to total assets 11.08% 12.19% Tangible stockholders' equity to total tangible assets 8.72% 9.59% Book value per common share $11.13 $11.04 $0.09 Tangible book value per common share $8.53 $8.43 $0.10 Market price per share at end of period $13.72 $19.02 $(5.30) Total stockholders' equity and book value per share amounts have increased $9 million and $0.09 per share, respectively, from December 31, 2008, the result of earnings retention, exercised stock options, decrease in accumulated comprehensive loss, and stock issued in connection with the First National acquisition. Tangible stockholders' equity has increased $9 million, or 2 percent since December 31, 2008, with tangible stockholders' equity at 8.72 percent of total tangible assets at December 31, 2009, down from 9.59 percent at December 31, 2008. Accumulated other comprehensive loss, representing net unrealized losses (net of tax) on investment securities designated as available for sale, decreased $1 million from December 31, 2008. "Our capital levels continue to be a real strength for the Company," Blodnick said. "Not only are our capital levels well above the regulatory well capitalized requirements, but during a year of crisis for the banking industry we increased our capital while maintaining the level of our dividend and avoiding the need to participate in the Troubled Asset Relief Program (TARP)." Operating Results for Three Months Ended December 31, 2009 ---------------------------------------------------------- Compared to September 30, 2009 and December 31, 2008 ---------------------------------------------------- Revenue summary ($ in thousands) Three months ended ------------------ December 31, September 30, December 31, 2009 2009 2008 (unaudited) (unaudited) (unaudited) ----------- ----------- ----------- Net interest income Interest income $78,112 $74,430 $76,707 Interest expense 14,273 13,801 18,599 ------ ------ ------ Net interest income 63,839 60,629 58,108 Non-interest income Service charges, loan fees, and other fees 12,212 12,103 11,522 Gain on sale of loans 6,089 5,613 3,195 Gain on sale of investments 3,328 2,667 - Other income 4,450 1,317 920 ----- ----- --- Total non- interest income 26,079 21,700 15,637 ------ ------ ------ $89,918 $82,329 $73,745 ======= ======= ======= Tax equivalent net interest margin 4.70% 4.80% 4.81% ==== ==== ==== ($ in thousands) $ Change From $ Change From % Change From % Change From September 30, December 31, September 30, December 31, 2009 2008 2009 2008 ---- ---- ---- ---- Net interest income Interest income $3,682 $1,405 5% 2% Interest expense 472 (4,326) 3% -23% --- ------ Net interest income 3,210 5,731 5% 10% Non-interest income Service charges, loan fees, and other fees 109 690 1% 6% Gain on sale of loans 476 2,894 8% 91% Gain on sale of investments 661 3,328 25% n/m Other income 3,133 3,530 238% 384% ----- ----- Total non- interest income 4,379 10,442 20% 67% ----- ------ $7,589 $16,173 9% 22% ====== ======= n/m - not measurable Net Interest Income Net interest income for the current quarter increased $3.2 million with interest income increasing $3.7 million, or 5 percent, compared to the prior quarter. Net interest income for the year increased $6 million, or 10 percent, with interest expense decreasing $4 million, or 23 percent, over the same period in 2008. The decrease in total interest expense from the prior year fourth quarter is attributable to rate decreases in interest bearing deposits and lower cost borrowings. The current quarter net interest margin as a percentage of earning assets, on a tax equivalent basis, was 4.70 percent which is 10 basis points lower than the 4.80 percent achieved for the prior quarter, and 11 basis points lower than the 4.81 percent result for the fourth quarter of 2008. "Since hitting a high of 4.92 percent in the first quarter of 2009, our net interest margin as expected has experienced some compression the last three quarters," said Ron Copher, Chief Financial Officer. "Higher levels of non accruing loans and the growth of our investment portfolio that carries lower yields were the main reasons for the reduction." Non-interest Income Non-interest income for the current quarter totaled $26 million, an increase of $4 million over the prior quarter. Other income had a $3.5 million one-time bargain purchase gain from the acquisition of First National. Excluding the gain, non-interest income increased $897 thousand, or 4 percent, from the prior quarter, and increased $7.0 million, or 45 percent, over the same period in 2008. Fee income increased $109 thousand, or 1 percent, during the quarter, compared to the increase of $690 thousand, or 6 percent, over the same period last year. Gain on sale of loans increased $476 thousand, or 8 percent, for the quarter, and $2.894 million, or 91 percent, over the same period last year, primarily the result of increased residential loans originated and sold in the secondary market during 2009. Net gain on sale of investments was $3.328 million for the fourth quarter 2009 compared to $2.667 million for the previous quarter, a 25 percent increase. Non-interest expense summary Three months ended ------------------ ($ in thousands) December 31, September 30, December 31, 2009 2009 2008 (unaudited) (unaudited) (unaudited) ----------- ----------- ----------- Compensation and employee benefits $21,376 $20,935 $18,775 Occupancy and equipment expense 6,130 5,835 5,923 Advertising and promotion expense 1,435 1,596 1,675 Outsourced data processing 850 830 638 Core deposit intangibles amortization 822 758 741 Other expenses 13,720 11,942 8,340 ------ ------ ----- Total non- interest expense $44,333 $41,896 $36,092 ======= ======= ======= ($ in thousands) $ Change From $ Change From % Change From % Change From September 30, December 31, September 30, December 31, 2009 2008 2009 2008 ---- ---- ---- ---- Compensation and employee benefits $441 $2,601 2% 14% Occupancy and equipment expense 295 207 5% 3% Advertising and promotion expense (161) (240) -10% -14% Outsourced data processing 20 212 2% 33% Core deposit intangibles amortization 64 81 8% 11% Other expenses 1,778 5,380 15% 65% ----- ----- Total non- interest expense $2,437 $8,241 6% 23% ====== ====== Non-interest Expense Non-interest expense for the current quarter increased by $2.4 million, or 6 percent from the prior quarter and increased $8.2 million, or 23 percent, from the prior year's fourth quarter. Compensation and employee benefits increased $441 thousand, or 2 percent, from prior quarter and increased $2.6 million, or 14 percent, from prior year's fourth quarter. The current quarter increase in compensation and employee benefits is primarily a result of the acquisition of First National, and the increase over the prior year quarter is due to the acquisitions of First National and Bank of the San Juans which was acquired December 1, 2008. The number of full-time equivalent employees increased from 1,577 to 1,643 during the quarter, and increased from 1,571 since the end of the 2008, primarily the result of First National which has 75 full-time equivalent employees. Occupancy and equipment expense has increased $295 thousand, or 5 percent, and $207 thousand, or 3 percent, from the prior quarter and the prior year's fourth quarter, respectively, reflecting the acquisitions of First National and Bank of the San Juans. Advertising and promotion expense decreased $161 thousand, or 10 percent, from prior quarter and decreased $240 thousand, or 14 percent, from the same quarter of 2008 as the banks continue to focus on operating cost reduction. The increase of $1.8 million, or 15 percent, in other expense from the prior quarter includes increases of $413 thousand in expenses associated with repossessed assets, $300 thousand in legal and outside service expenses, the majority of which relate to the acquisition of First National, $240 thousand in FDIC insurance expense, $266 thousand in commercial loan expense, and general increases with the acquisition of First National. The increase of $5.4 million, or 65 percent, in other expense from the prior year's fourth quarter is a result of an increase of $1.5 million in FDIC insurance premiums, $1.5 million of loss from sales of other real estate owned, and $1.2 million in expenses associated with repossessed assets. Efficiency Ratio Excluding the bargain purchase gain, the efficiency ratio (non-interest expense / net interest income plus non-interest income) was 51 percent for the quarter, compared to 49 percent for the 2008 fourth quarter. The increase in the efficiency ratio from the prior year fourth quarter is the result of the increase in other expenses primarily from FDIC insurance premiums and other real estate owned expenses and losses. December 31, September 30, December 31, Credit Quality Summary 2009 2009 2008 ($ in thousands) (unaudited) (unaudited) (audited) ----------- ----------- --------- Allowance for loan and lease losses -beginning of year $76,739 76,739 54,413 Provision 124,618 87,905 28,480 Acquisition - - 2,625 Charge-offs (60,896) (40,991) (9,839) Recoveries 2,466 1,677 1,060 ----- ----- ----- Allowance for loan and lease losses -end of period $142,927 125,330 76,739 ======== ======= ====== Real estate and other assets owned $57,320 54,537 11,539 Accruing loans 90 days or more overdue 5,537 2,891 8,613 Non-accrual loans 198,281 185,577 64,301 ------- ------- ------ Total non-performing assets $261,138 243,005 84,453 Allowance for loan and lease losses as a percentage of non- performing assets 55% 52% 91% Non-performing assets as a percentage of total bank assets 4.13% 4.10% 1.46% Allowance for loan and lease losses as a percentage of total loans 3.46% 3.10% 1.86% Net charge-offs as a percentage of total loans (1.415%) (0.972%) (0.213%) Accruing loans 30-89 days or more overdue $87,491 43,606 54,787 Allowance for Loan and Lease Losses and Non-performing Assets At December 31, 2009, the allowance for loan and lease losses was $142.9 million, an increase of $66 million, or 86 percent, from a year ago. The allowance was 3.46 percent of total loans outstanding at December 31, 2009, up from 3.10 percent at the prior quarter end, and up from 1.86 percent at December 31, 2008. The allowance was 55 percent of non-performing assets at December 31, 2009, up from 52 percent for the prior quarter end and down from 91 percent a year ago. Non-performing assets as a percentage of total bank assets at December 31, 2009 were at 4.13 percent, up from 4.10 percent as of prior quarter end, and up from 1.46 percent at December 31, 2008. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of additional provision expense. Credit Quality Trends (Unaudited - $ in thousands) Accruing Loans Non-Performing Provision ALLL 30-89 days Assets to for Loan Net as a Percent as a Percent of Total Bank Losses Charge-Offs of Loans Loans Assets ------ ----------- -------- ----- ------ Q4 2009 $36,713 19,116 3.46% 2.12% 4.13% Q3 2009 47,050 19,094 3.10% 1.08% 4.10% Q2 2009 25,140 11,543 2.36% 1.52% 3.06% Q1 2009 15,715 8,677 2.01% 1.60% 1.97% Q4 2008 12,223 3,742 1.86% 1.33% 1.46% Q3 2008 8,715 3,889 1.67% 0.65% 1.30% Q2 2008 5,042 915 1.59% 0.92% 0.58% Q1 2008 2,500 233 1.54% 0.87% 0.57% The current quarter provision for loan loss expense was $37 million, a decrease of $10 million from prior quarter and an increase of $24 million from the same quarter in 2008. Net charged-off loans for the current quarter were $19 million compared to $19 million for the prior quarter and $4 million for the same quarter in 2008. For the quarter, the provision covered net charge-offs 1.9 times. "Although we are seeing some signs of credit quality beginning to stabilize, it's still uncertain if the trend will continue," Blodnick said. "Non-performing assets did not expand at the pace of the prior two quarters, however, they did move higher," Blodnick said. "The two loan categories we have experienced most of the increase in non-performing assets this year were spec residential construction and land development. In the quarter we saw a significant decrease in spec construction non-performing assets and only a moderate increase to land development, but as the economy continues to struggle we did see non-performing assets increase in commercial real estate, C & I, and 1-4 family loans." For additional information regarding credit quality and a breakout of the loan portfolio by regulatory classification see exhibits at the end of this press release. Operating Results for Twelve Months Ended December 31, 2009 Compared to December 31, 2008 Revenue summary ($ in thousands) Twelve months ended ------------------- December 31, December 31, $ Change From % Change From 2009 2008 December 31, December 31, (unaudited) (audited) 2008 2008 ----------- --------- ---- ---- Net interest income Interest income $302,494 $302,985 $(491) 0% Interest expense 57,167 90,372 (33,205) -37% ------ ------ ------- Net interest income 245,327 212,613 32,714 15% Non-interest income Service charges, loan fees, and other fees 45,871 47,506 (1,635) -3% Gain on sale of loans 26,923 14,849 12,074 81% Gain (loss) on investments 5,995 (7,345) 13,340 182% Other income 7,685 6,024 1,661 28% ----- ----- ----- Total non- interest income 86,474 61,034 25,440 42% ------ ------ ------ $331,801 $273,647 $58,154 21% ======== ======== ======= Tax equivalent net interest margin 4.82% 4.70% ==== ==== Net Interest Income Net interest income for the current year increased $33 million, or 15 percent, over the same period in 2008. Total interest income decreased $491 thousand, or less than 1 percent, while total interest expense decreased $33 million, or 37 percent. The decrease in total interest expense from prior year 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 for the year, was 4.82 percent for the current year, an increase of 12 basis points from the 4.70 percent for the same period in 2008. Non-interest Income Total non-interest income increased $25 million, or 42 percent over the same period in 2008. Fee income for the year decreased $1.6 million, or 3 percent, as compared to 2008. Gain on sale of loans increased $12 million, or 81 percent, primarily the result of the increase in purchase and refinance residential loans originated and sold in the secondary market. Gain on investments during 2009 of $6.0 million is the net gain from sales of investment securities. Loss from investments during 2008 included a non-recurring $7.6 million other than temporary impairment charge on investments in Freddie Mac preferred stock and Fannie Mae common stock. Other income of $7.7 million includes a $3.5 million one-time bargain purchase gain from the acquisition of First National in 2009. In 2008 other income of $6.0 million included a $1.7 million gain from the sale and relocation of Mountain West Bank's office facility in Ketchum, Idaho. Non-interest expense summary Twelve months ended ------------------- ($ in thousands) December 31, December 31, $ Change From % Change From 2009 2008 December 31, December 31, (unaudited) (audited) 2008 2008 ----------- --------- ---- ---- Compensation and employee benefits $84,965 $82,027 $2,938 4% Occupancy and equipment expense 23,471 21,674 1,797 8% Advertising and promotion expense 6,477 6,989 (512) -7% Outsourced data processing 3,031 2,508 523 21% Core deposit intangibles amortization 3,116 3,051 65 2% Other expenses 47,758 29,660 18,098 61% ------ ------ ------ Total non- interest expense $168,818 $145,909 $22,909 16% ======== ======== ======= Non-interest Expense Non-interest expense increased by $23 million, or 16 percent, during 2009. Compensation and employee benefit expense increased $2.9 million, or 4 percent, from 2008, due to the increased number of employees from the acquisition of Bank of the San Juans in December 2008 and First National in October 2009. Occupancy and equipment expense increased $2 million, or 8 percent, reflecting the cost of additional locations and facility upgrades. Advertising and promotion expense decreased $512 thousand, or 7 percent, from 2008 reflecting the banks' continuing focus on reducing operating expenses. Outsourced data processing expenses increased $523 thousand, or 21 percent, from 2008 as a result of additional locations and general operating increases. Other expenses increased $18 million, or 61 percent, from 2008. The increase in other expenses includes $7.3 million in FDIC insurance premiums, $5.2 million loss from sales of other real estate owned, $2.7 million expense associated with repossessed assets and $1.4 million in legal and outside firm expense. Of the increase in FDIC insurance premiums, $2.5 million is attributable to the second quarter asset-based special assessment. Efficiency Ratio The efficiency ratio (non-interest expense/net interest income plus non-interest income) was 51 percent for 2009 compared favorably to 52 percent for 2008, excluding non-recurring items. "The banks continue to work hard to improve on all their components of efficiency," Copher said. "Non interest expense in particular is an area the banks have specifically focused their attention." Allowance for Loan and Lease Losses The provision for loan loss expense was $125 million for 2009, an increase of $96 million, or 338 percent, from 2008. Net charged-off loans during 2009 was $58 million, an increase of $50 million from 2008. Recent Acquisition On October 2, 2009, the Company completed the acquisition of First Company and its subsidiary First National Bank & Trust, a community bank based in Powell, Wyoming. First National Bank & Trust provides community banking services from three branch locations in Powell, Cody, and Lovell, Wyoming. As of the acquisition, First National Bank & Trust had total assets of approximately $272 million. First National Bank & Trust will operate as a separate wholly-owned subsidiary of the Company. Cash Dividend On December 15, 2009, the board of directors declared a cash dividend of $.13 per share, payable January 14, 2010 to shareholders of record on January 5, 2010. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality and general economic conditions. 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 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; First National Bank & Trust in Wyoming; 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) December 31, December 31, ---------------------------------- 2009 2008 ---- ---- (unaudited) (audited) Assets: Cash on hand and in banks $120,731 125,123 Federal funds sold 87,155 6,480 Interest bearing cash deposits 2,689 3,652 Investment securities, available-for- sale 1,506,394 990,092 Net loans receivable: Real estate loans 797,626 838,375 Commercial loans 2,613,218 2,575,828 Consumer and other loans 719,401 715,990 ------- ------- Total loans, gross 4,130,245 4,130,193 Allowance for loan and lease losses (142,927) (76,739) -------- ------- Total loans, net 3,987,318 4,053,454 --------- --------- Premises and equipment, net 140,921 133,949 Real estate and other assets owned, net 57,320 11,539 Accrued interest receivable 29,729 28,777 Deferred tax asset 41,082 14,292 Core deposit intangible, net 13,937 13,013 Goodwill 146,259 146,752 Other assets 58,260 26,847 ------ ------ Total assets $6,191,795 5,553,970 ========== ========= Liabilities and stockholders' equity: Non-interest bearing deposits $810,550 747,439 Interest bearing deposits 3,289,602 2,515,036 Advances from Federal Home Loan Bank 790,367 338,456 Securities sold under agreements to repurchase 212,506 188,363 Federal Reserve Discount Window 225,000 914,000 Other borrowed funds 13,745 8,368 Accrued interest payable 7,928 9,751 Subordinated debentures 124,988 121,037 Other liabilities 31,219 34,580 ------ ------ Total liabilities 5,505,905 4,877,030 --------- --------- 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 616 613 Paid-in capital 497,493 491,794 Retained earnings - substantially restricted 188,129 185,776 Accumulated other comprehensive loss (348) (1,243) ---- ------ Total stockholders' equity 685,890 676,940 ------- ------- Total liabilities and stockholders' equity $6,191,795 5,553,970 ========== ========= Number of shares outstanding 61,619,803 61,331,273 Book value of equity per share 11.13 11.04 Glacier Bancorp, Inc. Consolidated Condensed Statements of Operations ----------------------------------------------- ($ in thousands except per Three months ended Twelve months ended share data) December 31, December 31, ---------------- ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- (unaudited) (unaudited) (unaudited) (audited) Interest income: Real estate loans $12,956 13,374 54,498 51,166 Commercial loans 39,278 40,274 151,580 165,119 Consumer and other loans 11,213 11,861 44,844 47,725 Investment securities and other 14,665 11,198 51,572 38,975 ------ ------ ------ ------ Total interest income 78,112 76,707 302,494 302,985 ------ ------ ------- ------- Interest expense: Deposits 9,630 12,151 38,429 55,012 Federal Home Loan Bank advances 2,194 2,478 7,952 15,355 Securities sold under agreements to repurchase 557 756 2,007 3,823 Subordinated debentures 1,594 1,852 6,818 7,430 Other borrowed funds 298 1,362 1,961 8,752 --- ----- ----- ----- Total interest expense 14,273 18,599 57,167 90,372 ------ ------ ------ ------ Net interest income 63,839 58,108 245,327 212,613 Provision for loan losses 36,713 12,223 124,618 28,480 ------ ------ ------- ------ Net interest income after provision for loan losses 27,126 45,885 120,709 184,133 ------ ------ ------- ------- Non-interest income: Service charges and other fees 10,627 10,195 40,465 41,550 Miscellaneous loan fees and charges 1,585 1,327 5,406 5,956 Gain on sale of loans 6,089 3,195 26,923 14,849 Gain (loss) on investments 3,328 - 5,995 (7,345) Other income 4,450 920 7,685 6,024 ----- --- ----- ----- Total non-interest income 26,079 15,637 86,474 61,034 ------ ------ ------ ------ Non-interest expense: Compensation, employee benefits and related expenses 21,376 18,775 84,965 82,027 Occupancy and equipment expense 6,130 5,923 23,471 21,674 Advertising and promotion expense 1,435 1,675 6,477 6,989 Outsourced data processing expense 850 638 3,031 2,508 Core deposit intangibles amortization 822 741 3,116 3,051 Other expenses 13,720 8,340 47,758 29,660 ------ ----- ------ ------ Total non- interest expense 44,333 36,092 168,818 145,909 ------ ------ ------- ------- Earnings before income taxes 8,872 25,430 38,365 99,258 Federal and state income tax (benefit) expense (602) 8,416 3,991 33,601 ---- ----- ----- ------ Net earnings $9,474 17,014 34,374 65,657 ====== ====== ====== ====== Basic earnings per share 0.15 0.30 0.56 1.20 Diluted earnings per share 0.15 0.29 0.56 1.19 Dividends declared per share 0.13 0.13 0.52 0.52 Return on average assets (annualized) 0.62% 1.27% 0.60% 1.31% Return on average equity (annualized) 5.43% 11.02% 4.97% 11.63% Average outstanding shares - basic 61,619,803 57,458,743 61,529,944 54,851,145 Average outstanding shares - diluted 61,619,803 57,556,778 61,531,640 55,003,814 Glacier Bancorp, Inc. Average Balance Sheet For the three months ended 12-31-09 -------------------------- (Unaudited - $ in thousands) Interest Average Average and Yield/ ASSETS Balance Dividends Rate ------- --------- ---- Real Estate Loans $818,364 $12,956 6.33% Commercial Loans 2,642,721 39,278 5.90% Consumer and Other Loans 703,435 11,213 6.32% ------- ------ Total Loans 4,164,520 63,447 6.04% Tax -Exempt Investment Securities (1) 460,512 5,504 4.78% Other Investment Securities 968,255 9,161 3.78% ------- ----- Total Earning Assets 5,593,287 78,112 5.59% ------ Goodwill and Core Deposit Intangible 160,674 Other Non-Earning Assets 262,851 ------- TOTAL ASSETS $6,016,812 ========== LIABILITIES AND STOCKHOLDERS' EQUITY NOW Accounts $685,340 $756 0.44% Savings Accounts 304,284 167 0.22% Money Market Accounts 815,166 2,029 0.99% Certificates of Deposit 1,046,689 5,833 2.21% Wholesale Deposits 282,904 845 1.18% FHLB Advances 649,871 2,194 1.34% Repurchase Agreements and Other Borrowed Funds 672,681 2,449 1.44% ------- ----- Total Interest Bearing Liabilities 4,456,935 14,273 1.27% ------ Non-interest Bearing Deposits 817,677 Other Liabilities 49,661 ------ Total Liabilities 5,324,273 --------- Common Stock 616 Paid-In Capital 497,230 Retained Earnings 189,613 Accumulated Other Comprehensive Gain 5,080 ----- Total Stockholders' Equity 692,539 ------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $6,016,812 ========== Net Interest Income $63,839 ======= Net Interest Spread 4.32% Net Interest Margin 4.53% Net Interest Margin (Tax Equivalent) 4.70% Return on Average Assets (annualized) 0.62% Return on Average Equity (annualized) 5.43% ---- For the twelve months ended 12-31-09 --------------------------- (Unaudited - $ in thousands) Interest Average Average and Yield/ ASSETS Balance Dividends Rate ------- --------- ---- Real Estate Loans $829,348 $54,498 6.57% Commercial Loans 2,608,961 151,580 5.81% Consumer and Other Loans 702,232 44,844 6.39% ------- ------ Total Loans 4,140,541 250,922 6.06% Tax -Exempt Investment Securities (1) 445,063 22,196 4.99% Other Investment Securities 707,062 29,376 4.15% ------- ------ Total Earning Assets 5,292,666 302,494 5.72% ------- Goodwill and Core Deposit Intangible 158,896 Other Non-Earning Assets 240,367 ------- TOTAL ASSETS $5,691,929 ========== LIABILITIES AND STOCKHOLDERS' EQUITY NOW Accounts $572,260 $2,275 0.40% Savings Accounts 303,794 947 0.31% Money Market Accounts 768,939 8,436 1.10% Certificates of Deposit 960,403 24,719 2.57% Wholesale Deposits 133,083 2,052 1.54% FHLB Advances 473,038 7,952 1.68% Repurchase Agreements and Other Borrowed Funds 995,006 10,786 1.08% ------- ------ Total Interest Bearing Liabilities 4,206,523 57,167 1.36% ------ Non-interest Bearing Deposits 755,128 Other Liabilities 38,356 ------ Total Liabilities 5,000,007 --------- Common Stock 615 Paid-In Capital 495,340 Retained Earnings 193,973 Accumulated Other Comprehensive Gain 1,994 ----- Total Stockholders' Equity 691,922 ------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,691,929 ========== Net Interest Income $245,327 ======== Net Interest Spread 4.36% Net Interest Margin 4.64% Net Interest Margin (Tax Equivalent) 4.82% Return on Average Assets (annualized) 0.60% Return on Average Equity (annualized) 4.97% ---- (1) Excludes tax effect of $9,827,000 and $2,437,000 on non- taxable investment security income for the year to date and quarter ended December 31, 2009, respectively. Glacier Bancorp, Inc. Loan Portfolio - by Regulatory Classification (Unaudited - $ in thousands) Loans Receivable, Gross ----------------------- % Change % Change Balance Balance Balance From From 12/31/2009 9/30/2009 12/31/2008 9/30/2009 12/31/2008 ---------- --------- ---------- --------- ---------- Glacier $942,254 950,000 982,098 -1% -4% Mountain West 957,451 971,240 971,468 -1% -1% First Security 566,713 574,371 573,228 -1% -1% 1st Bank 296,913 299,095 326,381 -1% -9% Western 323,375 332,709 361,261 -3% -10% Big Sky 270,970 283,110 293,626 -4% -8% Valley 187,283 188,221 199,085 0% -6% First National 153,058 - - n/m n/m Citizens 166,049 172,769 162,133 -4% 2% First Bank - MT 117,017 123,846 116,122 -6% 1% San Juans 149,162 150,889 144,791 -1% 3% ------- ------- ------- Total $4,130,245 4,046,250 4,130,193 2% 0% ========== ========= ========= Land, Lot and Other Construction Loans ------------------- % Change % Change Balance Balance Balance From From 12/31/2009 9/30/2009 12/31/2008 9/30/2009 12/31/2008 ---------- --------- ---------- --------- ---------- Glacier $165,734 164,448 204,479 1% -19% Mountain West 217,078 238,268 249,916 -9% -13% First Security 71,404 73,432 95,960 -3% -26% 1st Bank 36,888 39,218 41,667 -6% -11% Western 32,045 37,887 45,457 -15% -30% Big Sky 71,365 73,944 81,869 -3% -13% Valley 14,704 15,450 17,918 -5% -18% First National 10,303 - - n/m n/m Citizens 13,263 21,816 14,827 -39% -11% First Bank - MT 1,010 5,804 4,507 -83% -78% San Juans 39,621 36,202 36,793 9% 8% ------ ------ ------ Total $673,415 706,469 793,393 -5% -15% ======== ======= ======= Land, Lot and Other Construction Loans at 12/31/09 -------------------------------- Consumer Land Land or Unimproved Development Lot Land --------------- ------- -------- Glacier $80,881 33,025 29,850 Mountain West 55,908 74,914 29,684 First Security 30,569 7,208 26,372 1st Bank 14,447 12,223 4,448 Western 16,309 7,823 5,159 Big Sky 22,909 18,882 9,925 Valley 2,597 5,867 4,513 First National 1,961 2,990 733 Citizens 2,868 2,633 2,652 First Bank - MT - 65 820 San Juans 417 26,838 45 --- ------ -- Total $228,866 192,468 114,201 ======== ======= ======= Land, Lot and Other Construction Loans at 12/31/09 -------------------------------------------------- Developed Commercial Lots for Developed Other Operative Builders Lot Construction ---------------------- ------- ---------------- Glacier $8,625 13,353 - Mountain West 31,655 10,664 14,253 First Security 4,525 518 2,212 1st Bank 225 2,513 3,032 Western 587 1,914 253 Big Sky 1,992 8,420 9,237 Valley 159 349 1,219 First National 250 2,245 2,124 Citizens 506 655 3,949 First Bank - MT - - 125 San Juans - 3,878 8,443 --- ----- ----- Total $48,524 44,509 44,847 ======= ====== ====== Residential Construction Loans ------------------------------ Balance Balance Balance 12/31/2009 9/30/2009 12/31/2008 ---------- --------- ---------- Glacier $57,183 72,828 84,161 Mountain West 57,437 63,572 100,289 First Security 19,664 15,981 19,910 1st Bank 17,633 18,783 30,742 Western 2,245 3,709 6,993 Big Sky 20,679 27,803 28,356 Valley 5,170 5,380 8,265 First National 2,612 - - Citizens 13,211 16,705 17,909 First Bank - MT 234 179 1,384 San Juans 13,811 13,549 11,425 ------ ------ ------ Total $209,879 238,489 309,434 ======== ======= ======= Custom & % Change % Change Owner Pre-Sold From From Occupied & Spec 9/30/2009 12/31/2008 12/31/2009 12/31/2009 --------- ---------- ---------- ---------- Glacier -21% -32% $9,762 47,421 Mountain West -10% -43% 23,606 33,831 First Security 23% -1% 9,985 9,679 1st Bank -6% -43% 11,010 6,623 Western -39% -68% 1,830 415 Big Sky -26% -27% 3,169 17,510 Valley -4% -37% 4,222 948 First National n/m n/m 1,505 1,107 Citizens -21% -26% 6,619 6,592 First Bank - MT 31% -83% 174 60 San Juans 2% 21% 6,753 7,058 ----- ----- Total -12% -32% $78,635 131,244 ======= ======= n/m - not measurable Glacier Bancorp, Inc. Loan Portfolio - by Regulatory Classification (continued) (Unaudited - $ in thousands) Single Family Residential Loans ------------------------------- Balance Balance Balance 12/31/2009 9/30/2009 12/31/2008 ---------- --------- ---------- Glacier $204,789 205,203 198,654 Mountain West 278,158 275,936 274,119 First Security 82,141 82,349 79,107 1st Bank 65,555 63,893 62,954 Western 50,502 45,764 56,789 Big Sky 33,308 33,840 29,493 Valley 66,644 65,261 70,935 First National 19,239 - - Citizens 20,937 21,659 18,903 First Bank - MT 10,003 10,592 10,341 San Juans 22,811 22,790 23,605 ------ ------ ------ Total $854,087 827,287 824,900 ======== ======= ======= % Change % Change 1st Junior From From Lien Lien 9/30/2009 12/31/2008 12/31/2009 12/31/2009 --------- ---------- ---------- ---------- Glacier 0% 3% 183,647 21,142 Mountain West 1% 1% 236,962 41,196 First Security 0% 4% 68,266 13,875 1st Bank 3% 4% 60,566 4,989 Western 10% -11% 48,099 2,403 Big Sky -2% 13% 29,482 3,826 Valley 2% -6% 54,255 12,389 First National n/m n/m 16,150 3,089 Citizens -3% 11% 18,695 2,242 First Bank - MT -6% -3% 8,536 1,467 San Juans 0% -3% 21,305 1,506 ------ ----- Total 3% 4% 745,963 108,124 ======= ======= Commercial Real Estate Loans ---------------------------- Balance Balance Balance 12/31/2009 9/30/2009 12/31/2008 ---------- --------- ---------- Glacier $232,552 235,576 223,449 Mountain West 230,383 212,865 180,215 First Security 224,425 223,756 192,352 1st Bank 64,008 66,924 67,249 Western 107,173 104,450 98,290 Big Sky 82,303 83,489 80,053 Valley 48,144 48,202 46,850 First National 26,647 - - Citizens 55,660 53,424 53,813 First Bank - MT 18,827 13,772 17,397 San Juans 47,838 54,525 50,925 ------ ------ ------ Total $1,137,960 1,096,983 1,010,593 ========== ========= ========= % Change % Change Owner Non-Owner From From Occupied Occupied 9/30/2009 12/31/2008 12/31/2009 12/31/2009 --------- ---------- ---------- ---------- Glacier -1% 4% 117,243 115,309 Mountain West 8% 28% 164,625 65,758 First Security 0% 17% 150,733 73,692 1st Bank -4% -5% 54,852 9,156 Western 3% 9% 54,113 53,060 Big Sky -1% 3% 50,699 31,604 Valley 0% 3% 31,353 16,791 First National n/m n/m 18,329 8,318 Citizens 4% 3% 42,786 12,874 First Bank - MT 37% 8% 12,597 6,230 San Juans -12% -6% 27,306 20,532 ------ ------ Total 4% 13% 724,636 413,324 ======= ======= Consumer Loans -------------- Balance Balance Balance 12/31/2009 9/30/2009 12/31/2008 ---------- --------- ---------- Glacier $162,723 161,416 170,713 Mountain West 71,702 72,696 72,584 First Security 78,345 80,444 85,646 1st Bank 46,455 46,686 50,723 Western 48,946 49,912 55,714 Big Sky 28,903 28,906 33,147 Valley 24,625 25,753 25,802 First National 27,320 - - Citizens 29,253 28,276 28,633 First Bank - MT 7,650 7,699 7,251 San Juans 14,189 13,935 12,204 ------ ------ ------ Total $540,111 515,723 542,417 ======== ======= ======= % Change % Change Home Equity Other From From Line of Credit Consumer 9/30/2009 12/31/2008 12/31/2009 12/31/2009 --------- ---------- ---------- ---------- Glacier 1% -5% 145,377 17,346 Mountain West -1% -1% 61,896 9,806 First Security -3% -9% 51,110 27,235 1st Bank 0% -8% 17,575 28,880 Western -2% -12% 33,679 15,267 Big Sky 0% -13% 25,569 3,334 Valley -4% -5% 15,938 8,687 First National n/m n/m 16,803 10,517 Citizens 3% 2% 22,872 6,381 First Bank - MT -1% 6% 3,777 3,873 San Juans 2% 16% 12,439 1,750 ------ ----- Total 5% 0% 407,035 133,076 ======= ======= n/m - not measurable Glacier Bancorp, Inc. Credit Quality Summary (Unaudited - $ in thousands) Non-Performing Assets, Net of Govt. Guarantees By Loan Type ------------ Balance Balance Balance 12/31/2009 9/30/2009 12/31/2008 ---------- --------- ---------- Custom & Owner Occupied Construction $3,281 1,131 451 Pre-Sold & Spec Construction 29,580 39,812 21,903 Land Development 88,488 84,929 23,597 Consumer Land or Lots 10,120 12,092 1,511 Unimproved land 32,453 29,779 8,920 Developed Lots for Operative Builders 11,565 10,909 5,567 Commercial Lots 909 1,011 280 Other Construction - - 2,668 Commercial Real Estate 32,300 21,475 3,391 Commercial & Industrial 12,271 9,235 6,983 1-4 Family 30,868 24,615 6,666 Home Equity Line of Credits 6,234 5,539 1,807 Consumer 1,042 923 602 Other 2,027 1,555 107 ----- ----- --- Total $261,138 243,005 84,453 ======== ======= ====== Non- Accruing Other Accruing Loans 90 Real Estate Loans Days or More Owned 12/31/2009 12/31/2009 12/31/2009 ---------- ---------- ---------- Custom & Owner Occupied Construction $2,499 - 782 Pre-Sold & Spec Construction 20,849 420 8,311 Land Development 70,277 - 18,211 Consumer Land or Lots 6,161 54 3,905 Unimproved land 20,303 135 12,015 Developed Lots for Operative Builders 6,350 114 5,101 Commercial Lots 909 - - Other Construction - - - Commercial Real Estate 29,859 144 2,297 Commercial & Industrial 11,669 565 37 1-4 Family 22,596 2,750 5,522 Home Equity Line of Credits 4,711 1,183 340 Consumer 476 172 394 Other 1,622 - 405 ----- --- --- Total $198,281 5,537 57,320 ======== ===== ====== Accruing 30 - 89 Days Delinquent Loans and Non-Performing Assets, Net of Govt. Guarantees by Bank -------------------------------------------------- Balance Balance Balance 12/31/2009 9/30/2009 12/31/2008 ---------- --------- ---------- Glacier $97,666 99,792 41,691 Mountain West 109,187 76,073 41,415 First Security 59,351 46,321 18,793 1st Bank 21,117 19,744 14,355 Western 9,315 8,917 3,364 Big Sky 31,711 26,941 10,978 Valley 2,542 1,638 2,855 First National 9,290 - - Citizens 5,340 5,653 5,080 First Bank - MT 800 538 563 San Juans 2,310 994 146 ----- --- --- Total $348,629 286,611 139,240 ======== ======= ======= Accruing Non-Accrual & Other 30-89 Days Accruing Loans 90 Real Estate Delinquent Days or More Owned 12/31/2009 12/31/2009 12/31/2009 ---------- ---------- ---------- Glacier $18,677 72,157 6,832 Mountain West 32,506 62,855 13,826 First Security 14,934 31,665 12,752 1st Bank 4,210 7,673 9,234 Western 1,796 3,295 4,224 Big Sky 5,280 17,908 8,523 Valley 1,783 679 80 First National 5,744 3,407 139 Citizens 1,910 1,873 1,557 First Bank - MT 608 39 153 San Juans 43 2,267 - --- ----- --- Total $87,491 203,818 57,320 ======= ======= ====== Allowance for Loan and Lease Losses ----------------------------------- Balance Balance Balance 12/31/2009 9/30/2009 12/31/2008 ---------- --------- ---------- Glacier $38,978 35,835 18,990 Mountain West 37,551 32,686 15,982 First Security 18,242 15,673 11,537 1st Bank 10,895 10,038 6,012 Western 8,762 8,020 7,062 Big Sky 10,536 8,862 6,232 Valley 4,367 4,132 3,581 First National 1,679 - - Citizens 4,865 4,064 2,721 First Bank - MT 2,904 2,699 1,945 San Juans 4,148 3,321 2,677 ----- ----- ----- Total $142,927 125,330 76,739 ======== ======= ====== Provision for Provision the Year ALLL for Year Ended 12/31/09 as a Percent Ended Over Net of Loans 12/31/2009 Charge-Offs 12/31/2009 ---------- ----------- ---------- Glacier $32,000 2.7 4.14% Mountain West 50,500 1.7 3.92% First Security 10,450 2.8 3.22% 1st Bank 10,800 1.8 3.67% Western 3,200 2.1 2.71% Big Sky 9,200 1.9 3.89% Valley 1,200 2.9 2.33% First National 1,683 420.8 1.10% Citizens 2,800 4.3 2.93% First Bank - MT 985 37.9 2.48% San Juans 1,800 5.5 2.78% ----- Total $124,618 2.1 3.46% ======== Net Charge-Offs, Year-to-Date Period Ending Charge-Offs Recoveries ------------------------------ 12/31/2009 9/30/2009 12/31/2008 12/31/2009 12/31/2009 ---------- --------- ---------- ---------- ---------- Glacier $12,012 4,155 1,121 12,117 105 Mountain West 28,931 21,296 5,557 29,766 835 First Security 3,745 1,889 425 3,931 186 1st Bank 5,917 5,024 347 6,215 298 Western 1,500 1,342 282 1,896 396 Big Sky 4,896 4,370 600 5,433 537 Valley 414 349 127 457 43 First National 4 - - 4 - Citizens 656 532 302 683 27 First Bank - MT 26 31 17 57 31 San Juans 329 326 1 337 8 --- --- - --- --- Total $58,430 39,314 8,779 60,896 2,466 ======= ====== ===== ====== ===== 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/

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