Glacier Bancorp, Inc. (NASDAQ:GBCI) reported net income of $81.9
million for the current quarter, an increase of $24.5 million, or
43 percent, from the $57.4 million of net income for the prior year
fourth quarter. Diluted earnings per share for the
current quarter was $0.86 per share, an increase of 39 percent from
the prior year fourth quarter diluted earnings per share of $0.62.
“While the pandemic has created a difficult time for the country
and our Company, the Glacier Team did an outstanding job managing
through the challenges and still delivering excellent results for
the quarter and full year,” said Randy Chesler, President and Chief
Executive Officer. “We are especially pleased with our credit
performance which reflects the strong markets in which we operate
as well as our conservative lending culture. We are optimistic
about the future and the opportunity for continued profitable
growth.”
Net income for 2020 was $266 million, an
increase of $55.9 million, or 27 percent, from the $211 million net
income from the prior year. Diluted earnings per share for the
current year was $2.81 per share, an increase of 18 percent, from
the diluted earnings per share of $2.38 for last year.
In order to meet the needs of customers impacted
by the pandemic, during the second quarter of 2020 the Company
modified 3,054 loans in the amount of $1.515 billion primarily with
short-term payment deferrals under six months. The majority of
these modified loan deferral periods expired and the loans returned
to regular payment status with only $94.9 million loans, or 93
basis points, remaining deferred as of
December 31, 2020.
In addition, the Company originated SBA PPP
loans primarily for small businesses in its communities. The
Company originated 16,090 PPP loans in the amount of $1.472 billion
during the current year. The majority of the PPP loans are expected
to be forgiven by the SBA resulting in the forgiven loan amounts
paid to the Company by the SBA. During the current quarter, the PPP
loans provided $21.5 million of interest income (including deferred
fees and deferred costs) of which $14.0 million was accelerated by
the SBA forgiveness.
On February 29, 2020, the Company completed the
acquisition of State Bank Corp., the parent company of State Bank
of Arizona, a community bank based in Lake Havasu City, Arizona
(collectively, “SBAZ”). SBAZ provides banking services to
individuals and businesses in Arizona with ten banking offices
located in Bullhead City, Cottonwood, Kingman, Lake Havasu City,
Phoenix, Prescott Valley and Prescott. Upon closing of the
transaction, SBAZ merged into the Company's Foothills Bank
division, which expanded the Company's footprint in Arizona to
cover all major markets in the state and established it as a
leading community bank in Arizona.
The Company’s results of operations and
financial condition include the SBAZ acquisition and the following
table discloses the preliminary fair value estimates of selected
classifications of assets and liabilities acquired:
|
State Bank Corp. |
(Dollars in thousands) |
February 29,2020 |
Total assets |
$ |
745,420 |
Debt securities |
142,174 |
Loans receivable |
451,702 |
Non-interest bearing deposits |
141,620 |
Interest bearing deposits |
461,669 |
Borrowings |
10,904 |
Asset Summary
|
|
|
|
|
|
|
$ Change from |
(Dollars in thousands) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Dec 31,2019 |
|
Sep 30,2020 |
|
Dec 31,2019 |
Cash and cash equivalents |
$ |
633,142 |
|
|
769,879 |
|
|
330,961 |
|
|
(136,737 |
) |
|
302,181 |
|
Debt securities, available-for-sale |
5,337,814 |
|
|
4,125,548 |
|
|
2,575,252 |
|
|
1,212,266 |
|
|
2,762,562 |
|
Debt securities, held-to-maturity |
189,836 |
|
|
193,509 |
|
|
224,611 |
|
|
(3,673 |
) |
|
(34,775 |
) |
Total debt securities |
5,527,650 |
|
|
4,319,057 |
|
|
2,799,863 |
|
|
1,208,593 |
|
|
2,727,787 |
|
Loans receivable |
|
|
|
|
|
|
|
|
|
Residential real estate |
802,508 |
|
|
862,614 |
|
|
926,388 |
|
|
(60,106 |
) |
|
(123,880 |
) |
Commercial real estate |
6,315,895 |
|
|
6,201,817 |
|
|
5,579,307 |
|
|
114,078 |
|
|
736,588 |
|
Other commercial |
3,054,817 |
|
|
3,593,322 |
|
|
2,094,254 |
|
|
(538,505 |
) |
|
960,563 |
|
Home equity |
636,405 |
|
|
646,850 |
|
|
617,201 |
|
|
(10,445 |
) |
|
19,204 |
|
Other consumer |
313,071 |
|
|
314,128 |
|
|
295,660 |
|
|
(1,057 |
) |
|
17,411 |
|
Loans receivable |
11,122,696 |
|
|
11,618,731 |
|
|
9,512,810 |
|
|
(496,035 |
) |
|
1,609,886 |
|
Allowance for credit losses |
(158,243 |
) |
|
(164,552 |
) |
|
(124,490 |
) |
|
6,309 |
|
|
(33,753 |
) |
Loans receivable, net |
10,964,453 |
|
|
11,454,179 |
|
|
9,388,320 |
|
|
(489,726 |
) |
|
1,576,133 |
|
Other assets |
1,378,961 |
|
|
1,382,952 |
|
|
1,164,855 |
|
|
(3,991 |
) |
|
214,106 |
|
Total assets |
$ |
18,504,206 |
|
|
17,926,067 |
|
|
13,683,999 |
|
|
578,139 |
|
|
4,820,207 |
|
Total debt securities of $5.528 billion at
December 31, 2020 increased $1.209 billion, or 28 percent, during
the current quarter and increased $2.728 billion, or 97 percent,
from the prior year end. The Company continues to purchase debt
securities with excess liquidity from the increase in core deposits
and SBA forgiveness of PPP loans. Debt securities represented 30
percent of total assets at December 31, 2020 compared to 24
percent of total assets at September 30, 2020 and 20 percent of
total assets at December 31, 2019.
The loan portfolio of $11.123 billion decreased
$496 million, or 4 percent, during the current quarter which was
driven by the SBA forgiveness of the PPP loans. Excluding the
decrease in the PPP loans, the loan portfolio increased $43.2
million, or 42 basis points, during the current quarter with the
largest increase in commercial real estate loans which increased
$114 million, or 2 percent. Excluding the PPP loans and the SBAZ
acquisition, the loan portfolio increased $249 million, or 3
percent, from the prior year end with the largest increase in
commercial real estate loans which increased $401 million, or 7
percent.
Credit Quality Summary
|
At or for the Yearended |
|
At or for the NineMonths ended |
|
At or for the Yearended |
(Dollars in thousands) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Dec 31,2019 |
Allowance for credit losses |
|
|
|
|
|
Balance at beginning of period |
$ |
124,490 |
|
|
124,490 |
|
|
131,239 |
|
Impact of adopting CECL |
3,720 |
|
|
3,720 |
|
|
— |
|
Acquisitions |
49 |
|
|
49 |
|
|
— |
|
Provision for credit losses |
37,637 |
|
|
39,165 |
|
|
57 |
|
Charge-offs |
(13,808 |
) |
|
(7,865 |
) |
|
(15,178 |
) |
Recoveries |
6,155 |
|
|
4,993 |
|
|
8,372 |
|
Balance at end of period |
$ |
158,243 |
|
|
164,552 |
|
|
124,490 |
|
Other real estate owned |
$ |
1,744 |
|
|
5,361 |
|
|
5,142 |
|
Accruing loans 90 days or more past due |
1,725 |
|
|
2,952 |
|
|
1,412 |
|
Non-accrual loans |
31,964 |
|
|
36,350 |
|
|
30,883 |
|
Total non-performing assets |
$ |
35,433 |
|
|
44,663 |
|
|
37,437 |
|
Non-performing assets as a
percentage of subsidiary assets |
0.19 |
% |
|
0.25 |
% |
|
0.27 |
% |
Allowance for credit losses as
a percentage of non-performing loans |
470 |
% |
|
419 |
% |
|
385 |
% |
Allowance for credit losses as
a percentage of total loans |
1.42 |
% |
|
1.42 |
% |
|
1.31 |
% |
Net charge-offs as a percentage of total loans |
0.07 |
% |
|
0.03 |
% |
|
0.07 |
% |
Accruing loans 30-89 days past due |
$ |
22,721 |
|
|
17,631 |
|
|
23,192 |
|
Accruing troubled debt restructurings |
$ |
42,003 |
|
|
39,999 |
|
|
34,055 |
|
Non-accrual troubled debt restructurings |
$ |
3,507 |
|
|
7,579 |
|
|
3,346 |
|
U.S. government guarantees included in non-performing assets |
$ |
3,011 |
|
|
4,411 |
|
|
1,786 |
|
Non-performing assets of $35.4 million at
December 31, 2020 decreased $9.2 million, or 21 percent, over the
prior quarter and decreased $2.0 million, or 5 percent, over the
prior year fourth quarter. Non-performing assets as a percentage of
subsidiary assets at December 31, 2020 was 0.19 percent. Excluding
the government guaranteed PPP loans, the non-performing assets as a
percentage of subsidiary assets at December 31, 2020 was 0.20
percent, a decrease of 7 basis points from the prior quarter and
from the prior year end. Early stage delinquencies (accruing loans
30-89 days past due) of $22.7 million at December 31, 2020
increased $5.1 million from the prior quarter and decreased $471
thousand from the prior year fourth quarter. Early stage
delinquencies as a percentage of loans at December 31, 2020 was
0.20 percent, which was an increase of 5 basis points from prior
quarter and a 4 basis points decrease from prior year fourth
quarter. Excluding PPP loans, early stage delinquencies as a
percentage of loans at December 31, 2020 was 0.22 percent, which
was an increase of 5 basis points from prior quarter and a 2 basis
points decrease from prior year fourth quarter.
During the current quarter, the Company
reclassified the current year credit loss expense for unfunded loan
commitments from non-interest expense to provision for credit
losses in the income statement. The Company believes reporting the
credit loss expense on unfunded loan commitments together with
credit loss expense on the loan portfolio is more appropriate than
reporting credit loss expense on unfunded loan commitments as
non-interest expense. The current quarter provision for
credit loss benefit of $1.5 million included a provision for credit
loss benefit of $1.5 million on the loan portfolio and a provision
for credit loss benefit of $8 thousand on unfunded loan
commitments.
The current quarter provision for credit loss
benefit on loans was a decrease of $4.4 million from the prior
quarter provision for credit loss expense of $2.9 million. The
current year provision for credit loss expense on loans was $37.6
million and primarily attributable to provision for credit losses
related to COVID-19 and an additional $4.8 million of provision for
credit losses related to the SBAZ acquisition. The allowance for
credit losses on loans (“ACL”) as a percentage of total loans
outstanding at December 31, 2020 was 1.42 percent which
remained unchanged compared to the prior quarter. Excluding the PPP
loans, the ACL as percentage of loans was 1.55 percent compared to
1.62 percent in as of the prior quarter.
Credit Quality Trends and Provision for Credit
Losses on the Loan Portfolio
(Dollars in thousands) |
Provision for Credit Losses Loans |
|
NetCharge-Offs |
|
ACLas a Percentof Loans |
|
AccruingLoans
30-89Days Past Dueas a Percent ofLoans |
|
Non-PerformingAssets toTotal SubsidiaryAssets |
Fourth quarter 2020 |
$ |
(1,528 |
) |
|
$ |
4,781 |
|
1.42 |
% |
|
0.20 |
% |
|
0.19 |
% |
Third quarter 2020 |
2,869 |
|
|
826 |
|
1.42 |
% |
|
0.15 |
% |
|
0.25 |
% |
Second quarter 2020 |
13,552 |
|
|
1,233 |
|
1.42 |
% |
|
0.22 |
% |
|
0.27 |
% |
First quarter 2020 |
22,744 |
|
|
813 |
|
1.49 |
% |
|
0.41 |
% |
|
0.26 |
% |
Fourth quarter 2019 |
— |
|
|
1,045 |
|
1.31 |
% |
|
0.24 |
% |
|
0.27 |
% |
Third quarter 2019 |
— |
|
|
3,519 |
|
1.32 |
% |
|
0.31 |
% |
|
0.40 |
% |
Second quarter 2019 |
— |
|
|
732 |
|
1.46 |
% |
|
0.43 |
% |
|
0.41 |
% |
First quarter 2019 |
57 |
|
|
1,510 |
|
1.56 |
% |
|
0.44 |
% |
|
0.42 |
% |
Net charge-offs for the current quarter were
$4.8 million compared to $826 thousand for the prior quarter and
$1.0 million from the same quarter last year. The
current quarter increase was primarily isolated to one credit
relationship. The increase in the current quarter loan portfolio
growth, composition, average loan size, credit quality
considerations, economic forecasts and other environmental factors
will continue to determine the level of the provision for credit
losses.
PPP Loans
|
December 31, 2020 |
(Dollars in thousands) |
Number of PPP Loans |
|
Amount of PPP Loans |
|
Total LoansReceivable, Net of PPP Loans |
|
PPP Loans (Amount) as a Percent of Total LoansReceivable, Net of
PPP Loans |
Residential real estate |
— |
|
$ |
— |
|
802,508 |
|
— |
% |
Commercial real estate and other commercial |
|
|
|
|
|
|
|
Real estate rental and leasing |
896 |
|
37,285 |
|
3,484,537 |
|
1.07 |
% |
Accommodation and food services |
1,200 |
|
108,273 |
|
657,770 |
|
16.46 |
% |
Healthcare |
1,389 |
|
210,349 |
|
835,642 |
|
25.17 |
% |
Manufacturing |
594 |
|
43,798 |
|
182,565 |
|
23.99 |
% |
Retail and wholesale trade |
1,166 |
|
99,504 |
|
471,282 |
|
21.11 |
% |
Construction |
1,607 |
|
128,101 |
|
758,308 |
|
16.89 |
% |
Other |
4,532 |
|
281,863 |
|
2,071,435 |
|
13.61 |
% |
Home equity and other consumer |
— |
|
— |
|
949,476 |
|
— |
% |
Total |
11,384 |
|
$ |
909,173 |
|
10,213,523 |
|
8.90 |
% |
During the current year, the PPP loan
originations generated $55.2 million of SBA processing fees, or an
average of 3.75 percent, and $8.9 million of deferred compensation
costs for total net deferred fees of $46.3 million. During the
current quarter, the Company actively worked with its customers to
submit applications to the SBA for PPP loan forgiveness which
resulted in a decrease of $539 million, or 37 percent, of the PPP
loans.
The Company recognized $38.2 million of interest
income (including deferred fees and costs) from the PPP loans in
2020, which included $14.0 million acceleration of net deferred
fees in interest income resulting from the SBA forgiveness of
loans. Net deferred fees remaining on the balance of PPP loans at
December 31, 2020 were $17.6 million, which will be recognized into
interest income over the remaining life of the loans or when the
loans are forgiven in whole or in part by the SBA.
COVID-19 Bank Loan Modifications
|
December 31, 2020 |
|
September 30, 2020 |
(Dollars in thousands) |
Total Loans Receivable, Net of PPP Loans |
|
Amount of Unexpired Original Loan Modifications |
|
Amount of Re-deferral Loan Modifications |
|
Amount of Remaining Loan Modifications |
|
Loan Modifications (Amount) as a Percent of Total LoansReceivable,
Net of PPP Loans |
|
Amount of Remaining Loan Modifications |
|
Loan Modifications (Amount) as a Percent of Total LoansReceivable,
Net of PPP Loans |
Residential real estate |
$ |
802,508 |
|
|
4,322 |
|
|
— |
|
|
4,322 |
|
|
0.54 |
% |
|
$ |
28,571 |
|
|
3.31 |
% |
Commercial real estate and other commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate rental and leasing |
3,484,537 |
|
|
39,329 |
|
|
3,984 |
|
|
43,313 |
|
|
1.24 |
% |
|
206,838 |
|
|
6.15 |
% |
Accommodation and food services |
657,770 |
|
|
8,151 |
|
|
13,903 |
|
|
22,054 |
|
|
3.35 |
% |
|
82,182 |
|
|
12.75 |
% |
Healthcare |
835,642 |
|
|
1,043 |
|
|
88 |
|
|
1,131 |
|
|
0.14 |
% |
|
43,253 |
|
|
5.23 |
% |
Manufacturing |
182,565 |
|
|
6,806 |
|
|
2,682 |
|
|
9,488 |
|
|
5.20 |
% |
|
18,559 |
|
|
9.61 |
% |
Retail and wholesale trade |
471,282 |
|
|
2,655 |
|
|
— |
|
|
2,655 |
|
|
0.56 |
% |
|
15,853 |
|
|
3.36 |
% |
Construction |
758,308 |
|
|
927 |
|
|
— |
|
|
927 |
|
|
0.12 |
% |
|
14,525 |
|
|
1.88 |
% |
Other |
2,071,435 |
|
|
216 |
|
|
10,039 |
|
|
10,255 |
|
|
0.50 |
% |
|
50,588 |
|
|
2.44 |
% |
Home equity and other consumer |
949,476 |
|
|
705 |
|
|
— |
|
|
705 |
|
|
0.07 |
% |
|
5,767 |
|
|
0.60 |
% |
Total |
$ |
10,213,523 |
|
|
64,154 |
|
|
30,696 |
|
|
94,850 |
|
|
0.93 |
% |
|
$ |
466,136 |
|
|
4.58 |
% |
In response to COVID-19, the Company modified
3,054 loans in the amount of $1.515 billion during the second
quarter of 2020. These modifications were primarily short-term
payment deferrals under six months. During the second half of 2020,
the majority of the modified loan deferral periods expired, and the
loans returned to regular payment status. As of December 31, 2020,
$94.9 million of the modifications, or 93 basis points of the
$10.214 billion of loans, net of the PPP loans, remain in the
deferral period, a reduction of $371 million in the current quarter
and a reduction of $1.420 billion from the $1.515 billion of the
original loan modifications in the second quarter.
In addition to the Bank loan modifications
presented above, the state of Montana created the Montana Loan
Deferment Program for only Montana-based businesses and was
implemented only in the third quarter. Cares Act Funds were used to
provide interest payments upfront and directly to lenders on behalf
of participating borrowers to convert existing commercial loans to
interest only status, resulting in the deferral of principal and
interest for a period of six to twelve months. None of the interest
payments are required to be repaid by the borrowers, thus providing
a grant to the borrowers. This program was unique to Montana, had
minimal qualification requirements, and required that participating
lenders modify eligible loans to conform to the program in order
for borrowers to qualify for the grant. As of December 31, 2020,
the Company had $278 million in eligible loans benefiting from this
grant program, which was 2.8 percent of total loans receivable, net
of PPP loans. Given the unique nature of the Montana only grant
program, the $278 million was not included in the Bank loan
modifications presented above.
COVID-19 Higher Risk Industries - Enhanced
Monitoring
|
December 31, 2020 |
|
September 30, 2020 |
(Dollars in thousands) |
Enhanced Monitoring Total Loans Receivable, Net of PPP Loans |
|
Percent of Total Loans Receivable, Net of PPP Loans |
|
Amount of Unexpired Original Loan Modifications |
|
Amount of Re-deferral Loan Modifications |
|
Amount of Remaining Loan Modifications |
|
Loan Modifications (Amount) as a Percent of Enhanced Monitoring
LoansReceivable, Net of PPP Loans |
|
Amount of Remaining Loan Modifications |
|
Percent of Total Loans Receivable, Net of PPP Loans |
|
Loan Modifications (Amount) as a Percent of Enhanced Monitoring
LoansReceivable, Net of PPP Loans |
Hotel and motel |
$ |
428,868 |
|
4.20 |
% |
|
6,074 |
|
7,958 |
|
14,032 |
|
3.27 |
% |
|
$ |
50,770 |
|
4.15 |
% |
|
12.02 |
% |
Restaurant |
154,055 |
|
1.51 |
% |
|
2,054 |
|
5,945 |
|
7,999 |
|
5.19 |
% |
|
19,152 |
|
1.37 |
% |
|
13.78 |
% |
Travel and tourism |
22,018 |
|
0.22 |
% |
|
— |
|
— |
|
— |
|
— |
% |
|
5,002 |
|
0.19 |
% |
|
25.36 |
% |
Gaming |
14,220 |
|
0.14 |
% |
|
— |
|
— |
|
— |
|
— |
% |
|
1,101 |
|
0.14 |
% |
|
7.59 |
% |
Oil and gas |
23,158 |
|
0.23 |
% |
|
494 |
|
941 |
|
1,435 |
|
6.20 |
% |
|
1,474 |
|
0.22 |
% |
|
6.65 |
% |
Total |
$ |
642,319 |
|
6.29 |
% |
|
8,622 |
|
14,844 |
|
23,466 |
|
3.65 |
% |
|
$ |
77,499 |
|
6.08 |
% |
|
12.54 |
% |
Excluding the PPP loans, the Company has $642
million, or 6 percent, of its total loan portfolio with direct
exposure to industries for which it has identified as higher risk,
requiring enhanced monitoring. As of December 31, 2020, $23.5
million, or 3.65 percent, of the loans in the higher risk
industries have modifications which was a reduction of $54.0
million, or 70 percent, from the $77.5 million of modifications at
the end of the prior quarter. The Company continues to
conduct enhanced portfolio reviews and monitoring for potential
credit deterioration.
Supplemental information regarding credit
quality and identification of the Company’s loan portfolio based on
regulatory classification is provided in the exhibits at the end of
this press release. The regulatory classification of loans is based
primarily on collateral type while the Company’s loan segments
presented herein are based on the purpose of the loan.
Liability Summary
|
|
|
|
|
|
|
$ Change from |
(Dollars in thousands) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Dec 31,2019 |
|
Sep 30,2020 |
|
Dec 31,2019 |
Deposits |
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
$ |
5,454,539 |
|
|
5,479,311 |
|
|
3,696,627 |
|
|
(24,772 |
) |
|
1,757,912 |
|
NOW and DDA accounts |
3,698,559 |
|
|
3,300,152 |
|
|
2,645,404 |
|
|
398,407 |
|
|
1,053,155 |
|
Savings accounts |
2,000,174 |
|
|
1,864,143 |
|
|
1,485,487 |
|
|
136,031 |
|
|
514,687 |
|
Money market deposit accounts |
2,627,336 |
|
|
2,557,294 |
|
|
1,937,141 |
|
|
70,042 |
|
|
690,195 |
|
Certificate accounts |
978,779 |
|
|
979,857 |
|
|
958,501 |
|
|
(1,078 |
) |
|
20,278 |
|
Core deposits, total |
14,759,387 |
|
|
14,180,757 |
|
|
10,723,160 |
|
|
578,630 |
|
|
4,036,227 |
|
Wholesale deposits |
38,142 |
|
|
119,131 |
|
|
53,297 |
|
|
(80,989 |
) |
|
(15,155 |
) |
Deposits, total |
14,797,529 |
|
|
14,299,888 |
|
|
10,776,457 |
|
|
497,641 |
|
|
4,021,072 |
|
Repurchase agreements |
1,004,583 |
|
|
965,668 |
|
|
569,824 |
|
|
38,915 |
|
|
434,759 |
|
Federal Home Loan Bank advances |
— |
|
|
7,318 |
|
|
38,611 |
|
|
(7,318 |
) |
|
(38,611 |
) |
Other borrowed funds |
33,068 |
|
|
32,967 |
|
|
28,820 |
|
|
101 |
|
|
4,248 |
|
Subordinated debentures |
139,959 |
|
|
139,918 |
|
|
139,914 |
|
|
41 |
|
|
45 |
|
Other liabilities |
222,026 |
|
|
225,219 |
|
|
169,640 |
|
|
(3,193 |
) |
|
52,386 |
|
Total liabilities |
$ |
16,197,165 |
|
|
15,670,978 |
|
|
11,723,266 |
|
|
526,187 |
|
|
4,473,899 |
|
Core deposits of $14.759 billion as of December
31, 2020 increased $579 million, or 4 percent, from the prior
quarter. Excluding the SBAZ acquisition, core deposits increased
$3.433 billion, or 32 percent, from the prior year end, with
non-interest bearing deposits increasing $1.616 billion, or 44
percent. The current year significant increase in deposits was
attributable to a number of factors including the PPP loan proceeds
deposited by customers and the increase in customer
savings. Non-interest bearing deposits were 37 percent
of total core deposits at December 31, 2020 compared to 39 percent
of total core deposits at September 30, 2020 and 34 percent at
December 31, 2019.
Wholesale deposits of $38.1 million at December
31, 2020 decreased $81.0 million, or 68 percent, from the prior
quarter and decreased $15.2 million, or 28 percent, from the prior
year end. The remaining wholesale deposits at December 31, 2020 had
contractual maturities. Federal Home Loan Bank (“FHLB”) advances
were paid off as of December 31, 2020 which resulted in a decrease
of $7.3 million from the prior quarter and a decrease of $38.6
million from the prior year. The reduction in wholesale deposits
and FHLB advances were the result of the significant increase in
core deposits which funded loans and debt security growth.
Wholesale deposits and FHLB advances will continue to fluctuate as
necessary for balance sheet growth and to supplement liquidity
needs of the Company.
Stockholders’ Equity Summary
|
|
|
|
|
|
|
$ Change from |
(Dollars in thousands, except
per share data) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Dec 31,2019 |
|
Sep 30,2020 |
|
Dec 31,2019 |
Common equity |
$ |
2,163,951 |
|
|
2,123,991 |
|
|
1,920,507 |
|
|
39,960 |
|
|
243,444 |
|
Accumulated other
comprehensive income |
143,090 |
|
|
131,098 |
|
|
40,226 |
|
|
11,992 |
|
|
102,864 |
|
Total stockholders’ equity |
2,307,041 |
|
|
2,255,089 |
|
|
1,960,733 |
|
|
51,952 |
|
|
346,308 |
|
Goodwill and core deposit
intangible, net |
(569,522 |
) |
|
(572,134 |
) |
|
(519,704 |
) |
|
2,612 |
|
|
(49,818 |
) |
Tangible stockholders’ equity |
$ |
1,737,519 |
|
|
1,682,955 |
|
|
1,441,029 |
|
|
54,564 |
|
|
296,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity to total
assets |
|
12.47 |
% |
|
12.58 |
% |
|
14.33 |
% |
|
|
|
|
|
|
Tangible stockholders’ equity
to total tangible assets |
|
9.69 |
% |
|
9.70 |
% |
|
10.95 |
% |
|
|
|
|
|
|
Book value per common
share |
$ |
24.18 |
|
|
23.63 |
|
|
21.25 |
|
|
0.55 |
|
|
2.93 |
|
Tangible book value per common
share |
$ |
18.21 |
|
|
17.64 |
|
|
15.61 |
|
|
0.57 |
|
|
2.60 |
|
Tangible stockholders’ equity of $1.738 billion
at December 31, 2020 increased $54.6 million, or 3 percent, from
the prior quarter and was primarily the result of earnings
retention and an increase in other comprehensive income. Tangible
stockholders’ equity increased $296 million over the prior year,
which was the result of $112 million of Company stock issued for
the acquisitions of SBAZ and an increase in other comprehensive
income and earnings retention. These increases more than offset the
increase in goodwill and core deposit intangible associated with
the acquisition. The current year decrease in both the
stockholder’s equity to total assets ratio and the tangible
stockholders’ equity to total tangible assets ratio was primarily
the result of adding $909 million of PPP loans and $2.7 billion in
debt securities. Tangible book value per common share
of $18.21 at the current quarter end increased $0.57 per share from
the prior quarter and increased $2.60 per share from a year
ago.
Cash DividendsOn December 29, 2020, the
Company’s Board of Directors declared a special cash dividend of
$0.15 per share, the 17th special dividend the Company has
declared. The special dividend was payable on January 19, 2021 to
shareholders of record on January 8, 2021. On November 18, 2020,
the Company’s Board of Directors declared a quarterly cash dividend
of $0.30 per share. The regular quarterly dividend was payable
December 17, 2020 to shareholders of record on December 8,
2020. The dividend was the 143rd consecutive dividend. Future cash
dividends will depend on a variety of factors, including net
income, capital, asset quality, general economic conditions and
regulatory considerations.
S&P MidCap 400® IndexDuring the second quarter
of 2020, S&P Dow Jones Indices selected the Company to
transition from the S&P SmallCap 600® to the S&P MidCap
400®. S&P MidCap 400® index consists of 400 companies that are
chosen with regard to market capitalization, liquidity and industry
representations.
Operating Results for Three Months Ended
December 31, 2020 Compared to
September 30, 2020, June 30, 2020, March 31, 2020, and
December 31, 2019
Income Summary
|
Three Months ended |
(Dollars in thousands) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Jun 30,2020 |
|
Mar 31,2020 |
|
Dec 31,2019 |
Net interest income |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
171,308 |
|
|
157,487 |
|
|
155,404 |
|
|
142,865 |
|
|
145,281 |
|
Interest expense |
5,550 |
|
|
6,084 |
|
|
7,185 |
|
|
8,496 |
|
|
8,833 |
|
Total net interest income |
165,758 |
|
|
151,403 |
|
|
148,219 |
|
|
134,369 |
|
|
136,448 |
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
Service charges and other fees |
13,713 |
|
|
13,404 |
|
|
11,366 |
|
|
14,020 |
|
|
14,756 |
|
Miscellaneous loan fees and charges |
2,293 |
|
|
2,084 |
|
|
1,682 |
|
|
1,285 |
|
|
1,379 |
|
Gain on sale of loans |
26,214 |
|
|
35,516 |
|
|
25,858 |
|
|
11,862 |
|
|
10,135 |
|
Gain on sale of investments |
124 |
|
|
24 |
|
|
128 |
|
|
863 |
|
|
257 |
|
Other income |
2,360 |
|
|
2,639 |
|
|
2,190 |
|
|
5,242 |
|
|
1,890 |
|
Total non-interest income |
44,704 |
|
|
53,667 |
|
|
41,224 |
|
|
33,272 |
|
|
28,417 |
|
Total income |
210,462 |
|
|
205,070 |
|
|
189,443 |
|
|
167,641 |
|
|
164,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(tax-equivalent) |
4.03 |
% |
|
3.92 |
% |
|
4.12 |
% |
|
4.36 |
% |
|
4.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ Change from |
(Dollars in thousands) |
|
|
Sep 30,2020 |
|
Jun 30,2020 |
|
Mar 31,2020 |
|
Dec 31,2019 |
Net interest income |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
$ |
13,821 |
|
|
15,904 |
|
|
28,443 |
|
|
26,027 |
|
Interest expense |
|
|
(534 |
) |
|
(1,635 |
) |
|
(2,946 |
) |
|
(3,283 |
) |
Total net interest income |
|
|
14,355 |
|
|
17,539 |
|
|
31,389 |
|
|
29,310 |
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
Service charges and other fees |
|
|
309 |
|
|
2,347 |
|
|
(307 |
) |
|
(1,043 |
) |
Miscellaneous loan fees and charges |
|
|
209 |
|
|
611 |
|
|
1,008 |
|
|
914 |
|
Gain on sale of loans |
|
|
(9,302 |
) |
|
356 |
|
|
14,352 |
|
|
16,079 |
|
Gain on sale of investments |
|
|
100 |
|
|
(4 |
) |
|
(739 |
) |
|
(133 |
) |
Other income |
|
|
(279 |
) |
|
170 |
|
|
(2,882 |
) |
|
470 |
|
Total non-interest income |
|
|
(8,963 |
) |
|
3,480 |
|
|
11,432 |
|
|
16,287 |
|
Total income |
|
|
$ |
5,392 |
|
|
21,019 |
|
|
42,821 |
|
|
45,597 |
|
Net Interest IncomeThe current quarter net
interest income of $166 million increased $14.4 million, or 9
percent, over the prior quarter and increased $29.3 million, or 21
percent, from the prior year fourth quarter. The current quarter
interest income of $171 million increased $13.8 million, or 9
percent, compared to the prior quarter and increased $26.0 million,
or 18 percent, over the prior year fourth quarter. These increases
include increased income from commercial loans (primarily from the
PPP loans) and increased income on debt securities. The
interest income (which included deferred fees and deferred costs)
from the PPP loans was $21.5 million in the current quarter and
$9.3 million in the prior quarter.
The current quarter interest expense of $5.6
million decreased $534 thousand, or 9 percent, over the prior
quarter and decreased $3.3 million, or 37 percent, over the prior
year fourth quarter primarily as result of a decrease in deposit
rates and borrowing interest rates. During the current quarter, the
total cost of funding (including non-interest bearing deposits)
declined 2 basis points to 14 basis points compared to 16 basis
points for the prior quarter primarily as a result of a decrease in
rates on both deposits and borrowings. The total cost of funding
decreased 16 basis points from the prior year fourth quarter and
was attributable to a decrease in rates and a shift from higher
cost borrowings to low cost deposits.
The Company’s net interest margin as a
percentage of earning assets, on a tax-equivalent basis, for the
current quarter was 4.03 percent compared to 3.92 percent in the
prior quarter. The core net interest margin, excluding 3 basis
points of discount accretion and 24 basis points increase from the
PPP loans, was 3.76 percent compared to 4.02 in the prior quarter
and 4.33 percent in the prior year fourth quarter. The core net
interest margin decreased 11 basis points in the current quarter
and decreased 57 basis points from the prior year fourth quarter
due to a decrease in earning asset yields that outpaced the
decrease in the total cost of funding along with a shift in the
earning asset mix from higher yielding loans to lower yielding debt
securities.
Non-interest IncomeNon-interest income for the
current quarter totaled $44.7 million which was a decrease of $9.0
million, or 17 percent, over the prior quarter and an increase of
$16.3 million, or 57 percent, over the same quarter last year.
Service charges and other fees decreased $1.0 million from the
prior year fourth quarter due to the decreased overdraft activity.
Gain on the sale of loans of $26.2 million for the current quarter
decreased $9.3 million, or 26 percent, compared to the prior
quarter as a result of seasonal decreases, although remained at
elevated levels as a result of the current low interest rate
environment. Gain on sale of loans increased $16.1
million, or 159 percent, from the prior year fourth quarter due to
the significant increase in purchase and refinance activity driven
by the decrease in interest rates.
Non-interest Expense Summary
|
Three Months ended |
(Dollars in thousands) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Jun 30,2020 |
|
Mar 31,2020 |
|
Dec 31,2019 |
Compensation and employee benefits |
$ |
70,540 |
|
|
64,866 |
|
|
57,981 |
|
|
59,660 |
|
|
55,543 |
|
Occupancy and equipment |
9,728 |
|
|
9,369 |
|
|
9,357 |
|
|
9,219 |
|
|
9,149 |
|
Advertising and promotions |
2,797 |
|
|
2,779 |
|
|
2,138 |
|
|
2,487 |
|
|
2,747 |
|
Data processing |
5,211 |
|
|
5,597 |
|
|
5,042 |
|
|
5,282 |
|
|
4,972 |
|
Other real estate owned |
550 |
|
|
186 |
|
|
75 |
|
|
112 |
|
|
609 |
|
Regulatory assessments and insurance |
1,034 |
|
|
1,495 |
|
|
1,037 |
|
|
1,090 |
|
|
45 |
|
Core deposit intangibles amortization |
2,612 |
|
|
2,612 |
|
|
2,613 |
|
|
2,533 |
|
|
2,566 |
|
Other expenses |
18,715 |
|
|
16,469 |
|
|
16,521 |
|
|
15,104 |
|
|
19,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expense |
$ |
111,187 |
|
|
103,373 |
|
|
94,764 |
|
|
95,487 |
|
|
95,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ Change from |
(Dollars in thousands) |
|
|
Sep 30,2020 |
|
Jun 30,2020 |
|
Mar 31,2020 |
|
Dec 31,2019 |
Compensation and employee benefits |
|
|
$ |
5,674 |
|
|
12,559 |
|
|
10,880 |
|
|
14,997 |
|
Occupancy and equipment |
|
|
359 |
|
|
371 |
|
|
509 |
|
|
579 |
|
Advertising and promotions |
|
|
18 |
|
|
659 |
|
|
310 |
|
|
50 |
|
Data processing |
|
|
(386 |
) |
|
169 |
|
|
(71 |
) |
|
239 |
|
Other real estate owned |
|
|
364 |
|
|
475 |
|
|
438 |
|
|
(59 |
) |
Regulatory assessments and insurance |
|
|
(461 |
) |
|
(3 |
) |
|
(56 |
) |
|
989 |
|
Core deposit intangibles amortization |
|
|
— |
|
|
(1 |
) |
|
79 |
|
|
46 |
|
Other expenses |
|
|
2,246 |
|
|
2,194 |
|
|
3,611 |
|
|
(906 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expense |
|
|
$ |
7,814 |
|
|
16,423 |
|
|
15,700 |
|
|
15,935 |
|
Total non-interest expense of $111 million for
the current quarter increased $7.8 million, or 8 percent, over the
prior quarter and increased $16.0 million, or 17 percent, over the
prior year fourth quarter. Compensation and employee benefits
increased by $5.7 million, or 9 percent, from the prior quarter
which was primarily driven by the increase in accrued expenses for
employee benefits due to strong financial performance. Compensation
and employee benefits increased $15.0 million, or 27 percent, from
the prior year fourth quarter primarily due to an increased number
of employees driven by acquisitions and organic growth, increased
real estate commissions and increased performance-related
compensation. Occupancy and equipment expense increased $579
thousand, or 6 percent, over the prior year fourth quarter
primarily as a result of increased costs from acquisitions.
Regulatory assessment and insurance decreased $461 thousand from
the prior quarter primarily due to an accrual adjustment in the
current quarter for waiver of the State of Montana regulatory
semi-annual assessment for the second half of 2020. Regulatory
assessment and insurance increased $989 thousand from the prior
year fourth quarter primarily due to $1.3 million in Small Bank
Assessment credits applied in the prior year fourth quarter which
more than offset the decrease in the current quarter waiver from
the State of Montana assessment.
Other expenses of $18.7 million, increased $2.2
million, or 14 percent, from the prior quarter and decreased $906
thousand, or 5 percent, from the prior year fourth quarter. Current
quarter other expenses included acquisition-related expenses of
$501 thousand compared to $793 thousand in the prior quarter and
$4.4 million in the prior year fourth quarter.
Federal and State Income Tax ExpenseTax expense
during the fourth quarter of 2020 was $19.0 million, an increase of
$196 thousand, or 1 percent, compared to the prior quarter and an
increase of $6.7 million, or 55 percent, from the prior year fourth
quarter. The effective tax rate in the current and prior quarter
was 19 percent compared to 18 percent in the prior year fourth
quarter.
Efficiency RatioThe efficiency ratio was 50.34
percent in the current quarter and 48.05 percent in the prior
quarter. Excluding the impact from the PPP loans, the efficiency
ratio would have been 55.96 percent in the current quarter, which
was a 545 basis points increase from the prior quarter efficiency
ratio of 50.51 percent and was the result of the decrease in gain
on sale of loans and the increase in non-interest expense during
the current quarter. Excluding the current year impact from the PPP
loans, the current quarter efficiency ratio of 55.96 was an
increase of 106 basis points the prior year fourth quarter
efficiency ratio of 54.90 and was primarily the result of the
increase in compensation costs that outpaced the increase in gain
on sale of loans and net interest income.
Operating Results for Year Ended
December 31, 2020Compared to
December 31, 2019
Income Summary
|
Year ended |
|
|
|
|
(Dollars in thousands) |
Dec 31,2020 |
|
Dec 31,2019 |
|
$ Change |
|
% Change |
Net interest income |
|
|
|
|
|
|
|
Interest income |
$ |
627,064 |
|
|
$ |
546,177 |
|
|
$ |
80,887 |
|
|
15 |
% |
Interest expense |
27,315 |
|
|
42,773 |
|
|
(15,458 |
) |
|
(36 |
)% |
Total net interest income |
599,749 |
|
|
503,404 |
|
|
96,345 |
|
|
19 |
% |
|
|
|
|
|
|
|
|
Non-interest income |
|
|
|
|
|
|
|
Service charges and other fees |
52,503 |
|
|
67,934 |
|
|
(15,431 |
) |
|
(23 |
)% |
Miscellaneous loan fees and charges |
7,344 |
|
|
5,313 |
|
|
2,031 |
|
|
38 |
% |
Gain on sale of loans |
99,450 |
|
|
34,064 |
|
|
65,386 |
|
|
192 |
% |
Gain on sale of investments |
1,139 |
|
|
14,415 |
|
|
(13,276 |
) |
|
(92 |
)% |
Other income |
12,431 |
|
|
9,048 |
|
|
3,383 |
|
|
37 |
% |
Total non-interest income |
172,867 |
|
|
130,774 |
|
|
42,093 |
|
|
32 |
% |
Total Income |
$ |
772,616 |
|
|
$ |
634,178 |
|
|
$ |
138,438 |
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest margin (tax-equivalent) |
4.09 |
% |
|
4.39 |
% |
|
|
|
|
Net Interest IncomeNet-interest income of $600
million for 2020 increased $96.3 million, or 19 percent, over 2019.
Interest income of $627 million for the current year increased
$80.9 million, or 15 percent, from the prior year and was primarily
attributable to a $67.4 million increase in income from commercial
loans, including $38.2 million from the PPP loans. Additionally,
interest income on debt securities increased $14.1 million, or 17
percent, over the prior year which resulted from the increased
volume of debt securities. Interest expense of $27.3 million for
2020 decreased $15.5 million, or 36 percent over the prior year
primarily as a result of decreased higher cost FHLB advances
combined with the decrease in the cost of deposits and borrowings.
The total funding cost (including non-interest bearing deposits)
for 2020 was 19 basis points, which decreased 20 basis points
compared to 39 basis points in 2019.
The net interest margin as a percentage of
earning assets, on a tax-equivalent basis, during 2020 was 4.09
percent, a 30 basis points decrease from the net interest margin of
4.39 percent for 2019. The core net interest margin, excluding 3
basis points of discount accretion, 1 basis point of non-accrual
interest was 4.05 compared to a core margin of 4.30 percent in the
prior year. Although the Company was successful in reducing the
total cost of funding, it was not enough to outpace the decrease in
yields on loans and debt securities driven by the current interest
rate environment and the shift in the earning asset mix to lower
yielding debt securities. For the year, the 24 basis points
increase in the fourth quarter net interest margin from the PPP
loans offset the combined 24 basis points decrease in the net
interest margin from the PPP loans that occurred in the second and
third quarters of the current year.
Non-interest IncomeNon-interest income of $173
million for 2020 increased $42.1 million, or 32 percent, over last
year. Service charges and other fees of $52.5 million for 2020
decreased $15.4 million, or 23 percent, from prior year as a result
of a decrease in overdraft activity and the impact of the Durbin
Amendment which outpaced the additional fees from increased
customer accounts. As of July 1, 2019, the Company became subject
to the Durbin Amendment which established limits on the amount of
interchange fees that can be charged to merchants for debit card
processing. Miscellaneous loan fees increased $2.0 million, or 38
percent, driven by increased activity primarily in residential real
estate. Gain on the sale of loans of $99.5 million for 2020,
increased $65.4 million, or 192 percent, compared to the prior year
as a result of a significant increase in purchase and refinance
activity driven by the decrease in interest rates. Other income
increased $3.4 million from the prior year and was primarily the
result of a gain of $2.4 million on the sale of a former branch
building in the first quarter of 2020.
During the prior year third quarter, the Company
terminated $260 million notional pay-fixed interest rate swaps and
corresponding debt along with the sale of $308 million of
available-for-sale debt securities. Sale of the investment
securities resulted in a gain of $13.8 million in the prior year
third quarter. Offsetting the gain was a $10 million loss
recognized on the early termination of the interest swaps and a
$3.5 million write-off of deferred prepayment penalties on FHLB
borrowings.
Non-interest Expense Summary
|
Year ended |
|
|
|
|
(Dollars in thousands) |
Dec 31,2020 |
|
Dec 31,2019 |
|
$ Change |
|
% Change |
Compensation and employee benefits |
$ |
253,047 |
|
|
$ |
222,753 |
|
|
$ |
30,294 |
|
|
14 |
% |
Occupancy and equipment |
37,673 |
|
|
34,497 |
|
|
3,176 |
|
|
9 |
% |
Advertising and promotions |
10,201 |
|
|
10,621 |
|
|
(420 |
) |
|
(4 |
)% |
Data processing |
21,132 |
|
|
17,392 |
|
|
3,740 |
|
|
22 |
% |
Other real estate owned |
923 |
|
|
1,105 |
|
|
(182 |
) |
|
(16 |
)% |
Regulatory assessments and insurance |
4,656 |
|
|
3,771 |
|
|
885 |
|
|
23 |
% |
Loss on termination of hedging activities |
— |
|
|
13,528 |
|
|
(13,528 |
) |
|
(100 |
)% |
Core deposit intangibles amortization |
10,370 |
|
|
8,485 |
|
|
1,885 |
|
|
22 |
% |
Other expenses |
66,809 |
|
|
62,775 |
|
|
4,034 |
|
|
6 |
% |
Total non-interest expense |
$ |
404,811 |
|
|
$ |
374,927 |
|
|
$ |
29,884 |
|
|
8 |
% |
Total non-interest expense of $405 million for
2020 increased $29.9 million, or 8 percent, over the prior year.
Compensation and employee benefits for 2020 increased $30.3
million, or 14 percent, from last year due to the increased number
of employees from acquisitions and organic growth, increased real
estate commissions, increased performance-related compensation and
annual salary increases which more than offset the $8.9 million
deferral of compensation cost from the PPP loans in the current
year and the $5.4 million of stock compensation expense in the
prior year from the Heritage Bancorp acquisition. Occupancy and
equipment expense for current year increased $3.2 million, or 9
percent from the prior year primarily from increased cost from
acquisitions. Data processing expense for the current year
increased $3.7 million, or 22 percent, from the prior year as a
result of the increased costs from acquisitions along with
increased investment in technology infrastructure. Regulatory
assessment and insurance for the current year increased $885
thousand from the prior quarter primarily due to $2.5 million in
Small Bank Assessment credits applied in 2019 that more than offset
the $530 thousand in Small Bank credits applied in 2020 and the
current year waiver of the State of Montana regulatory assessment.
Other expenses of $66.8 million, increased $4.0 million, or 6
percent, from the prior year, including $1.9 million for third
party consulting regarding improvements in technology, product and
service offerings. Acquisition-related expenses were
$7.8 million in the current year compared to $8.5 million in the
prior year.
The prior year $13.5 million loss on termination
of hedging activities included a $3.5 million write-off of the
remaining unamortized deferred prepayment penalties on FHLB debt
and a $10 million loss on the termination of pay-fixed interest
rate swaps with notional amount of $260 million in the prior year
third quarter.
Provision for Credit LossesThe provision for credit
losses was $39.8 million for 2020, including provision for credit
losses of $37.6 million on the loan portfolio and $2.1 million of
provision for credit losses on unfunded loan commitments. The
provision for credit losses of $37.6 million on the loan portfolio
in the current year increased $37.6 million over the $57 thousand
prior year provision for credit losses on the loan portfolio which
was primarily attributable to changes in the economic forecast
related to COVID-19. Net charge-offs during the current year were
$7.6 million compared to $6.8 million during the prior year.
Federal and State Income Tax ExpenseTax expense
of $61.6 million in 2020 increased $13.0 million, or 27 percent,
over the prior year same period. The effective tax rate for each
year was 19 percent.
Efficiency RatioThe efficiency ratio was 49.97
percent for 2020. Excluding the impact from the PPP loans, the
efficiency ratio would have been 53.70 percent. The prior year
efficiency ratio was 57.78 and excluding the impact from the
termination of the cash flow hedges and the accelerated stock
compensation expense, the efficiency ratio would have been 54.79
percent. Excluding these adjustments, the current year efficiency
ratio decreased 109 basis points from the prior year efficiency
ratio which was driven primarily by the combined increased on gain
on sale of loans and the increased net interest income that more
than offset the decrease in service fee income from the Durbin
Amendment and increased compensation expense.
Forward-Looking Statements This news
release may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to,
statements about management’s plans, objectives, expectations and
intentions that are not historical facts, and other statements
identified by words such as “expects,” “anticipates,” “intends,”
“plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or
words of similar meaning. These forward-looking statements are
based on current beliefs and expectations of management and are
inherently subject to significant business, economic and
competitive uncertainties and contingencies, many of which are
beyond the Company’s control. In addition, these forward-looking
statements are subject to assumptions with respect to future
business strategies and decisions that are subject to change. The
following factors, among others, could cause actual results to
differ materially from the anticipated results or other
expectations in the forward-looking statements, including those set
forth in this news release:
- the risks associated with lending
and potential adverse changes of the credit quality of loans in the
Company’s portfolio;
- changes in trade, monetary and
fiscal policies and laws, including interest rate policies of the
Board of Governors of the Federal Reserve System or the Federal
Reserve Board, which could adversely affect the Company’s net
interest income and profitability;
- changes in the cost and scope of
insurance from the Federal Deposit Insurance Corporation and other
third parties;
- legislative or regulatory changes,
such as the recently adopted CARES Act addressing the economic
effects of the COVID-19 pandemic, as well as increased banking and
consumer protection regulation that adversely affect the Company’s
business, both generally and as a result of the Company exceeding
$10 billion in total consolidated assets;
- ability to complete pending or
prospective future acquisitions;
- costs or difficulties related to
the completion and integration of acquisitions;
- the goodwill the Company has
recorded in connection with acquisitions could become impaired,
which may have an adverse impact on earnings and capital;
- reduced demand for banking products
and services;
- the reputation of banks and the
financial services industry could deteriorate, which could
adversely affect the Company's ability to obtain and maintain
customers;
- competition among financial
institutions in the Company's markets may increase
significantly;
- the risks presented by continued
public stock market volatility, which could adversely affect the
market price of the Company’s common stock and the ability to raise
additional capital or grow the Company through acquisitions;
- the projected business and
profitability of an expansion or the opening of a new branch could
be lower than expected;
- consolidation in the financial
services industry in the Company’s markets resulting in the
creation of larger financial institutions who may have greater
resources could change the competitive landscape;
- dependence on the Chief Executive
Officer, the senior management team and the Presidents of Glacier
Bank divisions;
- material failure, potential
interruption or breach in security of the Company’s systems and
technological changes which could expose us to new risks (e.g.,
cybersecurity), fraud or system failures;
- natural disasters, including fires,
floods, earthquakes, and other unexpected events;
- the Company’s success in managing
risks involved in the foregoing; and
- the effects of any reputational
damage to the Company resulting from any of the foregoing.
The Company does not undertake any obligation to
publicly correct or update any forward-looking statement if it
later becomes aware that actual results are likely to differ
materially from those expressed in such forward-looking
statement.
Conference Call InformationA conference call for
investors is scheduled for 11:00 a.m. Eastern Time on Friday,
January 29, 2021. The conference call will be accessible by
telephone and webcast. Interested individuals are invited to listen
to the call by dialing 877-561-2748 and conference ID 6941139. To
participate on the webcast, log on to:
https://edge.media-server.com/mmc/p/ghaqi5ja. If you are unable to
participate during the live webcast, the call will be archived on
our website, www.glacierbancorp.com, or by calling 855-859-2056
with the ID 6941139 by February 12, 2021.
About Glacier Bancorp, Inc.Glacier Bancorp, Inc.
(NASDAQ:GBCI), a member of the Russell 2000® and the S&P MidCap
400® indices, is the parent company for Glacier Bank and its Bank
divisions: Bank of the San Juans (Durango, CO), Citizens Community
Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO),
First Bank of Montana (Lewistown, MT), First Bank of Wyoming
(Powell, WY), First Community Bank Utah (Layton, UT), First
Security Bank (Bozeman, MT), First Security Bank of Missoula
(Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank
(Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West
Bank (Coeur d’Alene, ID), North Cascades Bank (Chelan, WA), The
Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), and
Western Security Bank (Billings, MT).
CONTACT: |
Randall M. Chesler, CEO |
|
(406) 751-4722 |
|
Ron J. Copher, CFO |
|
(406) 751-7706 |
Glacier Bancorp,
Inc.Unaudited Condensed Consolidated Statements of
Financial Condition
(Dollars in thousands, except per share data) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Dec 31,2019 |
Assets |
|
|
|
|
|
Cash on hand and in banks |
$ |
227,108 |
|
|
249,245 |
|
|
198,639 |
|
Federal funds sold |
— |
|
|
590 |
|
|
— |
|
Interest bearing cash deposits |
406,034 |
|
|
520,044 |
|
|
132,322 |
|
Cash and cash equivalents |
633,142 |
|
|
769,879 |
|
|
330,961 |
|
Debt securities, available-for-sale |
5,337,814 |
|
|
4,125,548 |
|
|
2,575,252 |
|
Debt securities, held-to-maturity |
189,836 |
|
|
193,509 |
|
|
224,611 |
|
Total debt securities |
5,527,650 |
|
|
4,319,057 |
|
|
2,799,863 |
|
Loans held for sale, at fair value |
166,572 |
|
|
147,937 |
|
|
69,194 |
|
Loans receivable |
11,122,696 |
|
|
11,618,731 |
|
|
9,512,810 |
|
Allowance for credit losses |
(158,243 |
) |
|
(164,552 |
) |
|
(124,490 |
) |
Loans receivable, net |
10,964,453 |
|
|
11,454,179 |
|
|
9,388,320 |
|
Premises and equipment, net |
325,335 |
|
|
326,925 |
|
|
310,309 |
|
Other real estate owned |
1,744 |
|
|
5,361 |
|
|
5,142 |
|
Accrued interest receivable |
75,497 |
|
|
91,393 |
|
|
56,047 |
|
Deferred tax asset |
— |
|
|
— |
|
|
2,037 |
|
Core deposit intangible, net |
55,509 |
|
|
58,121 |
|
|
63,286 |
|
Goodwill |
514,013 |
|
|
514,013 |
|
|
456,418 |
|
Non-marketable equity securities |
10,023 |
|
|
10,366 |
|
|
11,623 |
|
Bank-owned life insurance |
123,763 |
|
|
123,095 |
|
|
109,428 |
|
Other assets |
106,505 |
|
|
105,741 |
|
|
81,371 |
|
Total assets |
$ |
18,504,206 |
|
|
17,926,067 |
|
|
13,683,999 |
|
Liabilities |
|
|
|
|
|
Non-interest bearing deposits |
$ |
5,454,539 |
|
|
5,479,311 |
|
|
3,696,627 |
|
Interest bearing deposits |
9,342,990 |
|
|
8,820,577 |
|
|
7,079,830 |
|
Securities sold under agreements to repurchase |
1,004,583 |
|
|
965,668 |
|
|
569,824 |
|
FHLB advances |
— |
|
|
7,318 |
|
|
38,611 |
|
Other borrowed funds |
33,068 |
|
|
32,967 |
|
|
28,820 |
|
Subordinated debentures |
139,959 |
|
|
139,918 |
|
|
139,914 |
|
Accrued interest payable |
3,305 |
|
|
3,951 |
|
|
4,686 |
|
Deferred tax liability |
23,860 |
|
|
17,227 |
|
|
— |
|
Other liabilities |
194,861 |
|
|
204,041 |
|
|
164,954 |
|
Total liabilities |
16,197,165 |
|
|
15,670,978 |
|
|
11,723,266 |
|
Commitments and Contingent Liabilities |
|
|
|
|
|
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 |
954 |
|
|
954 |
|
|
923 |
|
Paid-in capital |
1,495,053 |
|
|
1,493,928 |
|
|
1,378,534 |
|
Retained earnings - substantially restricted |
667,944 |
|
|
629,109 |
|
|
541,050 |
|
Accumulated other comprehensive income |
143,090 |
|
|
131,098 |
|
|
40,226 |
|
Total stockholders’ equity |
2,307,041 |
|
|
2,255,089 |
|
|
1,960,733 |
|
Total liabilities and stockholders’ equity |
$ |
18,504,206 |
|
|
17,926,067 |
|
|
13,683,999 |
|
Glacier Bancorp,
Inc.Unaudited Condensed Consolidated Statements of
Operations
|
Three Months ended |
|
Year ended |
(Dollars in thousands, except per share data) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Dec 31,2019 |
|
Dec 31,2020 |
|
Dec 31,2019 |
Interest Income |
|
|
|
|
|
|
|
|
|
Debt securities |
$ |
27,388 |
|
|
25,381 |
|
|
20,904 |
|
|
99,616 |
|
|
85,504 |
|
Residential real estate loans |
11,176 |
|
|
11,592 |
|
|
12,554 |
|
|
46,392 |
|
|
46,899 |
|
Commercial loans |
121,956 |
|
|
109,514 |
|
|
100,301 |
|
|
436,497 |
|
|
369,107 |
|
Consumer and other loans |
10,788 |
|
|
11,000 |
|
|
11,522 |
|
|
44,559 |
|
|
44,667 |
|
Total interest income |
171,308 |
|
|
157,487 |
|
|
145,281 |
|
|
627,064 |
|
|
546,177 |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
Deposits |
3,500 |
|
|
3,952 |
|
|
6,101 |
|
|
17,620 |
|
|
23,280 |
|
Securities sold under agreements to repurchase |
818 |
|
|
886 |
|
|
1,007 |
|
|
3,601 |
|
|
3,694 |
|
Federal Home Loan Bank advances |
49 |
|
|
70 |
|
|
86 |
|
|
733 |
|
|
9,023 |
|
Other borrowed funds |
173 |
|
|
173 |
|
|
92 |
|
|
646 |
|
|
215 |
|
Subordinated debentures |
1,010 |
|
|
1,003 |
|
|
1,547 |
|
|
4,715 |
|
|
6,561 |
|
Total interest expense |
5,550 |
|
|
6,084 |
|
|
8,833 |
|
|
27,315 |
|
|
42,773 |
|
Net Interest Income |
165,758 |
|
|
151,403 |
|
|
136,448 |
|
|
599,749 |
|
|
503,404 |
|
Provision for credit losses |
(1,535 |
) |
|
5,186 |
|
|
— |
|
|
39,765 |
|
|
57 |
|
Net interest income after provision for credit losses |
167,293 |
|
|
146,217 |
|
|
136,448 |
|
|
559,984 |
|
|
503,347 |
|
Non-Interest Income |
|
|
|
|
|
|
|
|
|
Service charges and other fees |
13,713 |
|
|
13,404 |
|
|
14,756 |
|
|
52,503 |
|
|
67,934 |
|
Miscellaneous loan fees and charges |
2,293 |
|
|
2,084 |
|
|
1,379 |
|
|
7,344 |
|
|
5,313 |
|
Gain on sale of loans |
26,214 |
|
|
35,516 |
|
|
10,135 |
|
|
99,450 |
|
|
34,064 |
|
Gain on sale of debt securities |
124 |
|
|
24 |
|
|
257 |
|
|
1,139 |
|
|
14,415 |
|
Other income |
2,360 |
|
|
2,639 |
|
|
1,890 |
|
|
12,431 |
|
|
9,048 |
|
Total non-interest income |
44,704 |
|
|
53,667 |
|
|
28,417 |
|
|
172,867 |
|
|
130,774 |
|
Non-Interest Expense |
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
70,540 |
|
|
64,866 |
|
|
55,543 |
|
|
253,047 |
|
|
222,753 |
|
Occupancy and equipment |
9,728 |
|
|
9,369 |
|
|
9,149 |
|
|
37,673 |
|
|
34,497 |
|
Advertising and promotions |
2,797 |
|
|
2,779 |
|
|
2,747 |
|
|
10,201 |
|
|
10,621 |
|
Data processing |
5,211 |
|
|
5,597 |
|
|
4,972 |
|
|
21,132 |
|
|
17,392 |
|
Other real estate owned |
550 |
|
|
186 |
|
|
609 |
|
|
923 |
|
|
1,105 |
|
Regulatory assessments and insurance |
1,034 |
|
|
1,495 |
|
|
45 |
|
|
4,656 |
|
|
3,771 |
|
Loss on termination of hedging activities |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
13,528 |
|
Core deposit intangibles amortization |
2,612 |
|
|
2,612 |
|
|
2,566 |
|
|
10,370 |
|
|
8,485 |
|
Other expenses |
18,715 |
|
|
16,469 |
|
|
19,621 |
|
|
66,809 |
|
|
62,775 |
|
Total non-interest expense |
111,187 |
|
|
103,373 |
|
|
95,252 |
|
|
404,811 |
|
|
374,927 |
|
Income Before Income Taxes |
100,810 |
|
|
96,511 |
|
|
69,613 |
|
|
328,040 |
|
|
259,194 |
|
Federal and state income tax expense |
18,950 |
|
|
18,754 |
|
|
12,203 |
|
|
61,640 |
|
|
48,650 |
|
Net Income |
$ |
81,860 |
|
|
77,757 |
|
|
57,410 |
|
|
266,400 |
|
|
210,544 |
|
Glacier Bancorp,
Inc.Average Balance Sheets
|
Three Months ended |
|
December 31, 2020 |
|
September 30, 2020 |
(Dollars in thousands) |
AverageBalance |
|
Interest &Dividends |
|
AverageYield/Rate |
|
AverageBalance |
|
Interest &Dividends |
|
AverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans |
$ |
984,942 |
|
|
$ |
11,176 |
|
|
4.54 |
% |
|
$ |
1,010,503 |
|
|
$ |
11,592 |
|
|
4.59 |
% |
Commercial loans 1 |
9,535,228 |
|
|
123,327 |
|
|
5.15 |
% |
|
9,636,631 |
|
|
110,847 |
|
|
4.58 |
% |
Consumer and other loans |
951,379 |
|
|
10,788 |
|
|
4.51 |
% |
|
957,284 |
|
|
11,000 |
|
|
4.57 |
% |
Total loans 2 |
11,471,549 |
|
|
145,291 |
|
|
5.04 |
% |
|
11,604,418 |
|
|
133,439 |
|
|
4.57 |
% |
Tax-exempt investment securities 2 |
1,511,725 |
|
|
14,659 |
|
|
3.88 |
% |
|
1,379,577 |
|
|
13,885 |
|
|
4.03 |
% |
Taxable investment securities 4 |
3,838,896 |
|
|
15,957 |
|
|
1.66 |
% |
|
2,809,545 |
|
|
14,568 |
|
|
2.07 |
% |
Total earning assets |
16,822,170 |
|
|
175,907 |
|
|
4.16 |
% |
|
15,793,540 |
|
|
161,892 |
|
|
4.08 |
% |
Goodwill and intangibles |
570,771 |
|
|
|
|
|
|
572,759 |
|
|
|
|
|
Non-earning assets |
853,518 |
|
|
|
|
|
|
794,165 |
|
|
|
|
|
Total assets |
$ |
18,246,459 |
|
|
|
|
|
|
$ |
17,160,464 |
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
$ |
5,498,744 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
5,171,984 |
|
|
$ |
— |
|
|
— |
% |
NOW and DDA accounts |
3,460,923 |
|
|
607 |
|
|
0.07 |
% |
|
3,218,536 |
|
|
642 |
|
|
0.08 |
% |
Savings accounts |
1,935,476 |
|
|
162 |
|
|
0.03 |
% |
|
1,804,438 |
|
|
166 |
|
|
0.04 |
% |
Money market deposit accounts |
2,635,653 |
|
|
1,052 |
|
|
0.16 |
% |
|
2,453,659 |
|
|
1,161 |
|
|
0.19 |
% |
Certificate accounts |
984,100 |
|
|
1,629 |
|
|
0.66 |
% |
|
981,385 |
|
|
1,936 |
|
|
0.78 |
% |
Total core deposits |
14,514,896 |
|
|
3,450 |
|
|
0.09 |
% |
|
13,630,002 |
|
|
3,905 |
|
|
0.11 |
% |
Wholesale deposits 5 |
100,329 |
|
|
50 |
|
|
0.20 |
% |
|
86,852 |
|
|
47 |
|
|
0.22 |
% |
FHLB advances |
6,540 |
|
|
49 |
|
|
2.93 |
% |
|
21,273 |
|
|
70 |
|
|
1.30 |
% |
Repurchase agreements and other borrowed funds |
1,142,199 |
|
|
2,001 |
|
|
0.70 |
% |
|
1,049,002 |
|
|
2,062 |
|
|
0.78 |
% |
Total funding liabilities |
15,763,964 |
|
|
5,550 |
|
|
0.14 |
% |
|
14,787,129 |
|
|
6,084 |
|
|
0.16 |
% |
Other liabilities |
199,771 |
|
|
|
|
|
|
120,294 |
|
|
|
|
|
Total liabilities |
15,963,735 |
|
|
|
|
|
|
14,907,423 |
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Common stock |
954 |
|
|
|
|
|
|
954 |
|
|
|
|
|
Paid-in capital |
1,494,422 |
|
|
|
|
|
|
1,493,353 |
|
|
|
|
|
Retained earnings |
657,906 |
|
|
|
|
|
|
622,099 |
|
|
|
|
|
Accumulated other comprehensive income |
129,442 |
|
|
|
|
|
|
136,635 |
|
|
|
|
|
Total stockholders’ equity |
2,282,724 |
|
|
|
|
|
|
2,253,041 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
18,246,459 |
|
|
|
|
|
|
$ |
17,160,464 |
|
|
|
|
|
Net interest income (tax-equivalent) |
|
|
$ |
170,357 |
|
|
|
|
|
|
$ |
155,808 |
|
|
|
Net interest spread (tax-equivalent) |
|
|
|
|
4.02 |
% |
|
|
|
|
|
3.92 |
% |
Net interest margin (tax-equivalent) |
|
|
|
|
4.03 |
% |
|
|
|
|
|
3.92 |
% |
______________________________1 Includes tax effect
of $1.4 million and $1.3 million on tax-exempt municipal loan and
lease income for the three months ended December 31, 2020 and
September 30, 2020, respectively.2 Total loans are gross of
the allowance for credit losses, net of unearned income and include
loans held for sale. Non-accrual loans were included in the average
volume for the entire period.3 Includes tax effect of $3.0 million
and $2.8 million on tax-exempt debt securities income for the three
months ended December 31, 2020 and September 30, 2020,
respectively.4 Includes tax effect of $266 thousand and $266
thousand on federal income tax credits for the three months ended
December 31, 2020 and September 30, 2020, respectively.5
Wholesale deposits include brokered deposits classified as NOW,
DDA, money market deposit and certificate accounts.
Glacier Bancorp,
Inc.Average Balance Sheets
(continued)
|
Three Months ended |
|
December 31, 2020 |
|
December 31, 2019 |
(Dollars in thousands) |
AverageBalance |
|
Interest &Dividends |
|
AverageYield/Rate |
|
AverageBalance |
|
Interest &Dividends |
|
AverageYield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans |
$ |
984,942 |
|
|
$ |
11,176 |
|
|
4.54 |
% |
|
$ |
1,010,174 |
|
|
$ |
12,554 |
|
|
4.97 |
% |
Commercial loans 1 |
9,535,228 |
|
|
123,327 |
|
|
5.15 |
% |
|
7,617,702 |
|
|
101,619 |
|
|
5.29 |
% |
Consumer and other loans |
951,379 |
|
|
10,788 |
|
|
4.51 |
% |
|
911,942 |
|
|
11,522 |
|
|
5.01 |
% |
Total loans 2 |
11,471,549 |
|
|
145,291 |
|
|
5.04 |
% |
|
9,539,818 |
|
|
125,695 |
|
|
5.23 |
% |
Tax-exempt debt securities 3 |
1,511,725 |
|
|
14,659 |
|
|
3.88 |
% |
|
853,524 |
|
|
8,983 |
|
|
4.21 |
% |
Taxable debt securities 4 |
3,838,896 |
|
|
15,957 |
|
|
1.66 |
% |
|
2,064,755 |
|
|
14,033 |
|
|
2.72 |
% |
Total earning assets |
16,822,170 |
|
|
175,907 |
|
|
4.16 |
% |
|
12,458,097 |
|
|
148,711 |
|
|
4.74 |
% |
Goodwill and intangibles |
570,771 |
|
|
|
|
|
|
521,405 |
|
|
|
|
|
Non-earning assets |
853,518 |
|
|
|
|
|
|
667,505 |
|
|
|
|
|
Total assets |
$ |
18,246,459 |
|
|
|
|
|
|
$ |
13,647,007 |
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
$ |
5,498,744 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
3,741,622 |
|
|
$ |
— |
|
|
— |
% |
NOW and DDA accounts |
3,460,923 |
|
|
607 |
|
|
0.07 |
% |
|
2,596,029 |
|
|
1,159 |
|
|
0.18 |
% |
Savings accounts |
1,935,476 |
|
|
162 |
|
|
0.03 |
% |
|
1,486,387 |
|
|
265 |
|
|
0.07 |
% |
Money market deposit accounts |
2,635,653 |
|
|
1,052 |
|
|
0.16 |
% |
|
1,947,102 |
|
|
1,710 |
|
|
0.35 |
% |
Certificate accounts |
984,100 |
|
|
1,629 |
|
|
0.66 |
% |
|
958,133 |
|
|
2,609 |
|
|
1.08 |
% |
Total core deposits |
14,514,896 |
|
|
3,450 |
|
|
0.09 |
% |
|
10,729,273 |
|
|
5,743 |
|
|
0.21 |
% |
Wholesale deposits 5 |
100,329 |
|
|
50 |
|
|
0.20 |
% |
|
72,539 |
|
|
358 |
|
|
1.96 |
% |
FHLB advances |
6,540 |
|
|
49 |
|
|
2.93 |
% |
|
15,601 |
|
|
86 |
|
|
2.18 |
% |
Repurchase agreements and other borrowed funds |
1,142,199 |
|
|
2,001 |
|
|
0.70 |
% |
|
703,391 |
|
|
2,646 |
|
|
1.49 |
% |
Total funding liabilities |
15,763,964 |
|
|
5,550 |
|
|
0.14 |
% |
|
11,520,804 |
|
|
8,833 |
|
|
0.30 |
% |
Other liabilities |
199,771 |
|
|
|
|
|
|
164,285 |
|
|
|
|
|
Total liabilities |
15,963,735 |
|
|
|
|
|
|
11,685,089 |
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Common stock |
954 |
|
|
|
|
|
|
922 |
|
|
|
|
|
Paid-in capital |
1,494,422 |
|
|
|
|
|
|
1,377,013 |
|
|
|
|
|
Retained earnings |
657,906 |
|
|
|
|
|
|
538,620 |
|
|
|
|
|
Accumulated other comprehensive income |
129,442 |
|
|
|
|
|
|
45,363 |
|
|
|
|
|
Total stockholders’ equity |
2,282,724 |
|
|
|
|
|
|
1,961,918 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
18,246,459 |
|
|
|
|
|
|
$ |
13,647,007 |
|
|
|
|
|
Net interest income (tax-equivalent) |
|
|
$ |
170,357 |
|
|
|
|
|
|
$ |
139,878 |
|
|
|
Net interest spread (tax-equivalent) |
|
|
|
|
4.02 |
% |
|
|
|
|
|
4.44 |
% |
Net interest margin (tax-equivalent) |
|
|
|
|
4.03 |
% |
|
|
|
|
|
4.45 |
% |
______________________________1 Includes tax effect
of $1.4 million and $1.3 million on tax-exempt municipal loan and
lease income for the three months ended December 31, 2020 and
2019, respectively.2 Total loans are gross of the allowance for
credit losses, net of unearned income and include loans held for
sale. Non-accrual loans were included in the average volume for the
entire period.3 Includes tax effect of $3.0 million and $1.8
million on tax-exempt debt securities income for the three months
ended December 31, 2020 and 2019, respectively.4 Includes tax
effect of $266 thousand and $276 thousand on federal income tax
credits for the three months ended December 31, 2020 and 2019,
respectively.5 Wholesale deposits include brokered deposits
classified as NOW, DDA, money market deposit and certificate
accounts.
Glacier Bancorp,
Inc.Average Balance Sheets
(continued)
|
Year ended |
|
December 31, 2020 |
|
December 31, 2019 |
(Dollars in thousands) |
AverageBalance |
|
Interest &Dividends |
|
Average Yield/Rate |
|
AverageBalance |
|
Interest &Dividends |
|
Average Yield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Residential real estate loans |
$ |
1,006,001 |
|
|
$ |
46,392 |
|
|
4.61 |
% |
|
$ |
965,553 |
|
|
$ |
46,899 |
|
|
4.86 |
% |
Commercial loans 1 |
9,057,210 |
|
|
441,762 |
|
|
4.88 |
% |
|
7,084,753 |
|
|
373,888 |
|
|
5.28 |
% |
Consumer and other loans |
948,379 |
|
|
44,559 |
|
|
4.70 |
% |
|
881,726 |
|
|
44,667 |
|
|
5.07 |
% |
Total loans 2 |
11,011,590 |
|
|
532,713 |
|
|
4.84 |
% |
|
8,932,032 |
|
|
465,454 |
|
|
5.21 |
% |
Tax-exempt debt securities 3 |
1,306,640 |
|
|
52,201 |
|
|
4.00 |
% |
|
917,454 |
|
|
38,195 |
|
|
4.16 |
% |
Taxable debt securities 4 |
2,746,855 |
|
|
59,027 |
|
|
2.15 |
% |
|
1,935,215 |
|
|
56,258 |
|
|
2.91 |
% |
Total earning assets |
15,065,085 |
|
|
643,941 |
|
|
4.27 |
% |
|
11,784,701 |
|
|
559,907 |
|
|
4.75 |
% |
Goodwill and intangibles |
564,603 |
|
|
|
|
|
|
410,561 |
|
|
|
|
|
Non-earning assets |
784,075 |
|
|
|
|
|
|
611,788 |
|
|
|
|
|
Total assets |
$ |
16,413,763 |
|
|
|
|
|
|
$ |
12,807,050 |
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
$ |
4,772,386 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
3,323,641 |
|
|
$ |
— |
|
|
— |
% |
NOW and DDA accounts |
3,094,675 |
|
|
2,849 |
|
|
0.09 |
% |
|
2,447,037 |
|
|
4,196 |
|
|
0.17 |
% |
Savings accounts |
1,737,272 |
|
|
742 |
|
|
0.04 |
% |
|
1,420,682 |
|
|
1,022 |
|
|
0.07 |
% |
Money market deposit accounts |
2,356,508 |
|
|
5,077 |
|
|
0.22 |
% |
|
1,787,149 |
|
|
5,385 |
|
|
0.30 |
% |
Certificate accounts |
986,126 |
|
|
8,568 |
|
|
0.87 |
% |
|
923,840 |
|
|
9,257 |
|
|
1.00 |
% |
Total core deposits |
12,946,967 |
|
|
17,236 |
|
|
0.13 |
% |
|
9,902,349 |
|
|
19,860 |
|
|
0.20 |
% |
Wholesale deposits 5 |
78,283 |
|
|
384 |
|
|
0.49 |
% |
|
137,442 |
|
|
3,420 |
|
|
2.49 |
% |
FHLB advances |
79,277 |
|
|
733 |
|
|
0.91 |
% |
|
265,712 |
|
|
9,023 |
|
|
3.35 |
% |
Repurchase agreements and other borrowed funds |
955,205 |
|
|
8,962 |
|
|
0.94 |
% |
|
625,242 |
|
|
10,470 |
|
|
1.67 |
% |
Total funding liabilities |
14,059,732 |
|
|
27,315 |
|
|
0.19 |
% |
|
10,930,745 |
|
|
42,773 |
|
|
0.39 |
% |
Other liabilities |
162,079 |
|
|
|
|
|
|
123,002 |
|
|
|
|
|
Total liabilities |
14,221,811 |
|
|
|
|
|
|
11,053,747 |
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Common stock |
949 |
|
|
|
|
|
|
883 |
|
|
|
|
|
Paid-in capital |
1,474,359 |
|
|
|
|
|
|
1,208,772 |
|
|
|
|
|
Retained earnings |
604,796 |
|
|
|
|
|
|
510,601 |
|
|
|
|
|
Accumulated other comprehensive income |
111,848 |
|
|
|
|
|
|
33,047 |
|
|
|
|
|
Total stockholders’ equity |
2,191,952 |
|
|
|
|
|
|
1,753,303 |
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
16,413,763 |
|
|
|
|
|
|
$ |
12,807,050 |
|
|
|
|
|
Net interest income (tax-equivalent) |
|
|
$ |
616,626 |
|
|
|
|
|
|
$ |
517,134 |
|
|
|
Net interest spread (tax-equivalent) |
|
|
|
|
4.08 |
% |
|
|
|
|
|
4.36 |
% |
Net interest margin (tax-equivalent) |
|
|
|
|
4.09 |
% |
|
|
|
|
|
4.39 |
% |
______________________________1 Includes tax effect
of $5.3 million and $4.8 million on tax-exempt municipal loan and
lease income for the year ended December 31, 2020 and 2019,
respectively.2 Total loans are gross of the allowance for credit
losses, net of unearned income and include loans held for sale.
Non-accrual loans were included in the average volume for the
entire period.3 Includes tax effect of $10.5 million and $7.8
million on tax-exempt debt securities income for the year ended
December 31, 2020 and 2019, respectively.4 Includes tax effect
of $1.1 million and $1.1 million on federal income tax credits for
the year ended December 31, 2020 and 2019, respectively.5
Wholesale deposits include brokered deposits classified as NOW,
DDA, money market deposit and certificate accounts.
Glacier Bancorp,
Inc.Loan Portfolio by Regulatory
Classification
|
Loans Receivable, by Loan Type |
% Change from |
(Dollars in thousands) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Dec 31,2019 |
|
Sep 30,2020 |
|
Dec 31,2019 |
Custom and owner occupied construction |
$ |
157,529 |
|
|
$ |
166,195 |
|
|
$ |
143,479 |
|
|
(5 |
)% |
|
10 |
% |
Pre-sold and spec construction |
148,845 |
|
|
157,242 |
|
|
180,539 |
|
|
(5 |
)% |
|
(18 |
)% |
Total residential construction |
306,374 |
|
|
323,437 |
|
|
324,018 |
|
|
(5 |
)% |
|
(5 |
)% |
Land development |
102,930 |
|
|
96,814 |
|
|
101,592 |
|
|
6 |
% |
|
1 |
% |
Consumer land or lots |
123,747 |
|
|
122,019 |
|
|
125,759 |
|
|
1 |
% |
|
(2 |
)% |
Unimproved land |
59,500 |
|
|
64,770 |
|
|
62,563 |
|
|
(8 |
)% |
|
(5 |
)% |
Developed lots for operative
builders |
30,449 |
|
|
30,871 |
|
|
17,390 |
|
|
(1 |
)% |
|
75 |
% |
Commercial lots |
60,499 |
|
|
62,445 |
|
|
46,408 |
|
|
(3 |
)% |
|
30 |
% |
Other construction |
555,375 |
|
|
537,105 |
|
|
478,368 |
|
|
3 |
% |
|
16 |
% |
Total land, lot, and other construction |
932,500 |
|
|
914,024 |
|
|
832,080 |
|
|
2 |
% |
|
12 |
% |
Owner occupied |
1,945,686 |
|
|
1,889,512 |
|
|
1,667,526 |
|
|
3 |
% |
|
17 |
% |
Non-owner occupied |
2,290,512 |
|
|
2,259,062 |
|
|
2,017,375 |
|
|
1 |
% |
|
14 |
% |
Total commercial real estate |
4,236,198 |
|
|
4,148,574 |
|
|
3,684,901 |
|
|
2 |
% |
|
15 |
% |
Commercial and industrial |
1,850,197 |
|
|
2,308,710 |
|
|
991,580 |
|
|
(20 |
)% |
|
87 |
% |
Agriculture |
721,490 |
|
|
747,145 |
|
|
701,363 |
|
|
(3 |
)% |
|
3 |
% |
1st lien |
1,228,867 |
|
|
1,256,111 |
|
|
1,186,889 |
|
|
(2 |
)% |
|
4 |
% |
Junior lien |
41,641 |
|
|
43,355 |
|
|
53,571 |
|
|
(4 |
)% |
|
(22 |
)% |
Total 1-4 family |
1,270,508 |
|
|
1,299,466 |
|
|
1,240,460 |
|
|
(2 |
)% |
|
2 |
% |
Multifamily residential |
391,895 |
|
|
359,030 |
|
|
342,498 |
|
|
9 |
% |
|
14 |
% |
Home equity lines of credit |
657,626 |
|
|
651,546 |
|
|
617,900 |
|
|
1 |
% |
|
6 |
% |
Other consumer |
190,186 |
|
|
191,761 |
|
|
174,643 |
|
|
(1 |
)% |
|
9 |
% |
Total consumer |
847,812 |
|
|
843,307 |
|
|
792,543 |
|
|
1 |
% |
|
7 |
% |
States and political subdivisions |
575,647 |
|
|
617,624 |
|
|
533,023 |
|
|
(7 |
)% |
|
8 |
% |
Other |
156,647 |
|
|
205,351 |
|
|
139,538 |
|
|
(24 |
)% |
|
12 |
% |
Total loans receivable, including loans held for sale |
11,289,268 |
|
|
11,766,668 |
|
|
9,582,004 |
|
|
(4 |
)% |
|
18 |
% |
Less loans held for sale 1 |
(166,572 |
) |
|
(147,937 |
) |
|
(69,194 |
) |
|
13 |
% |
|
141 |
% |
Total loans receivable |
$ |
11,122,696 |
|
|
$ |
11,618,731 |
|
|
$ |
9,512,810 |
|
|
(4 |
)% |
|
17 |
% |
______________________________1 Loans held for sale
are primarily 1st lien 1-4 family loans.
Glacier Bancorp,
Inc.Credit Quality Summary by Regulatory
Classification
|
Non-performing Assets, by Loan Type |
Non-AccrualLoans |
|
AccruingLoans 90Daysor More PastDue |
|
OtherReal EstateOwned |
(Dollars in thousands) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Dec 31,2019 |
|
Dec 31,2020 |
|
Dec 31,2020 |
|
Dec 31,2020 |
Custom and owner occupied construction |
$ |
247 |
|
|
249 |
|
|
185 |
|
|
247 |
|
|
— |
|
|
— |
|
Pre-sold and spec construction |
— |
|
|
— |
|
|
743 |
|
|
— |
|
|
— |
|
|
— |
|
Total residential construction |
247 |
|
|
249 |
|
|
928 |
|
|
247 |
|
|
— |
|
|
— |
|
Land development |
342 |
|
|
450 |
|
|
852 |
|
|
93 |
|
|
— |
|
|
249 |
|
Consumer land or lots |
201 |
|
|
223 |
|
|
330 |
|
|
74 |
|
|
— |
|
|
127 |
|
Unimproved land |
294 |
|
|
417 |
|
|
1,181 |
|
|
214 |
|
|
34 |
|
|
46 |
|
Commercial lots |
368 |
|
|
682 |
|
|
529 |
|
|
— |
|
|
— |
|
|
368 |
|
Total land, lot and other construction |
1,205 |
|
|
1,772 |
|
|
2,892 |
|
|
381 |
|
|
34 |
|
|
790 |
|
Owner occupied |
6,725 |
|
|
9,077 |
|
|
4,608 |
|
|
6,605 |
|
|
— |
|
|
120 |
|
Non-owner occupied |
4,796 |
|
|
4,879 |
|
|
8,229 |
|
|
4,607 |
|
|
189 |
|
|
— |
|
Total commercial real estate |
11,521 |
|
|
13,956 |
|
|
12,837 |
|
|
11,212 |
|
|
189 |
|
|
120 |
|
Commercial and industrial |
6,689 |
|
|
8,571 |
|
|
5,297 |
|
|
5,982 |
|
|
152 |
|
|
555 |
|
Agriculture |
6,313 |
|
|
8,972 |
|
|
2,288 |
|
|
6,164 |
|
|
149 |
|
|
— |
|
1st lien |
5,353 |
|
|
6,559 |
|
|
8,671 |
|
|
4,419 |
|
|
934 |
|
|
— |
|
Junior lien |
301 |
|
|
986 |
|
|
569 |
|
|
301 |
|
|
— |
|
|
— |
|
Total 1-4 family |
5,654 |
|
|
7,545 |
|
|
9,240 |
|
|
4,720 |
|
|
934 |
|
|
— |
|
Multifamily residential |
— |
|
|
— |
|
|
201 |
|
|
— |
|
|
— |
|
|
— |
|
Home equity lines of credit |
2,939 |
|
|
2,903 |
|
|
2,618 |
|
|
2,531 |
|
|
135 |
|
|
273 |
|
Other consumer |
572 |
|
|
407 |
|
|
837 |
|
|
466 |
|
|
100 |
|
|
6 |
|
Total consumer |
3,511 |
|
|
3,310 |
|
|
3,455 |
|
|
2,997 |
|
|
235 |
|
|
279 |
|
Other |
293 |
|
|
288 |
|
|
299 |
|
|
261 |
|
|
32 |
|
|
— |
|
Total |
$ |
35,433 |
|
|
44,663 |
|
|
37,437 |
|
|
31,964 |
|
|
1,725 |
|
|
1,744 |
|
Glacier Bancorp,
Inc.Credit Quality Summary by Regulatory
Classification (continued)
|
Accruing 30-89 Days Delinquent Loans,
by Loan Type |
% Change from |
(Dollars in thousands) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Dec 31,2019 |
|
Sep 30,2020 |
|
Dec 31,2019 |
Custom and owner occupied construction |
$ |
788 |
|
|
$ |
448 |
|
|
$ |
637 |
|
|
76 |
% |
|
24 |
% |
Pre-sold and spec construction |
— |
|
|
— |
|
|
148 |
|
|
n/m |
|
(100 |
)% |
Total residential construction |
788 |
|
|
448 |
|
|
785 |
|
|
76 |
% |
|
— |
% |
Land development |
202 |
|
|
— |
|
|
— |
|
|
n/m |
|
n/m |
Consumer land or lots |
71 |
|
|
220 |
|
|
672 |
|
|
(68 |
)% |
|
(89 |
)% |
Unimproved land |
357 |
|
|
381 |
|
|
558 |
|
|
(6 |
)% |
|
(36 |
)% |
Developed lots for operative
builders |
306 |
|
|
— |
|
|
2 |
|
|
n/m |
|
15,200 |
% |
Total land, lot and other construction |
936 |
|
|
601 |
|
|
1,232 |
|
|
56 |
% |
|
(24 |
)% |
Owner occupied |
3,432 |
|
|
3,163 |
|
|
3,052 |
|
|
9 |
% |
|
12 |
% |
Non-owner occupied |
149 |
|
|
1,157 |
|
|
1,834 |
|
|
(87 |
)% |
|
(92 |
)% |
Total commercial real estate |
3,581 |
|
|
4,320 |
|
|
4,886 |
|
|
(17 |
)% |
|
(27 |
)% |
Commercial and industrial |
1,814 |
|
|
2,354 |
|
|
2,036 |
|
|
(23 |
)% |
|
(11 |
)% |
Agriculture |
1,553 |
|
|
2,795 |
|
|
4,298 |
|
|
(44 |
)% |
|
(64 |
)% |
1st lien |
6,677 |
|
|
2,589 |
|
|
4,711 |
|
|
158 |
% |
|
42 |
% |
Junior lien |
55 |
|
|
738 |
|
|
624 |
|
|
(93 |
)% |
|
(91 |
)% |
Total 1-4 family |
6,732 |
|
|
3,327 |
|
|
5,335 |
|
|
102 |
% |
|
26 |
% |
Home equity lines of credit |
2,840 |
|
|
2,200 |
|
|
2,352 |
|
|
29 |
% |
|
21 |
% |
Other consumer |
1,054 |
|
|
789 |
|
|
1,187 |
|
|
34 |
% |
|
(11 |
)% |
Total consumer |
3,894 |
|
|
2,989 |
|
|
3,539 |
|
|
30 |
% |
|
10 |
% |
States and political subdivisions |
2,358 |
|
|
— |
|
|
— |
|
|
n/m |
|
n/m |
Other |
1,065 |
|
|
797 |
|
|
1,081 |
|
|
34 |
% |
|
(1 |
)% |
Total |
$ |
22,721 |
|
|
$ |
17,631 |
|
|
$ |
23,192 |
|
|
29 |
% |
|
(2 |
)% |
______________________________n/m - not
measurable
Glacier Bancorp,
Inc.Credit Quality Summary by Regulatory
Classification (continued)
|
Net Charge-Offs (Recoveries), Year-to-DatePeriod
Ending, By Loan Type |
|
Charge-Offs |
|
Recoveries |
(Dollars in thousands) |
Dec 31,2020 |
|
Sep 30,2020 |
|
Dec 31,2019 |
|
Dec 31,2020 |
|
Dec 31,2020 |
Custom and owner occupied construction |
$ |
(9 |
) |
|
(9 |
) |
|
98 |
|
|
— |
|
|
9 |
|
Pre-sold and spec construction |
(24 |
) |
|
(19 |
) |
|
(18 |
) |
|
— |
|
|
24 |
|
Total residential construction |
(33 |
) |
|
(28 |
) |
|
80 |
|
|
— |
|
|
33 |
|
Land development |
(106 |
) |
|
(63 |
) |
|
(30 |
) |
|
— |
|
|
106 |
|
Consumer land or lots |
(221 |
) |
|
(217 |
) |
|
(138 |
) |
|
7 |
|
|
228 |
|
Unimproved land |
(489 |
) |
|
(489 |
) |
|
(311 |
) |
|
— |
|
|
489 |
|
Developed lots for operative
builders |
— |
|
|
— |
|
|
(18 |
) |
|
— |
|
|
— |
|
Commercial lots |
(55 |
) |
|
(5 |
) |
|
(6 |
) |
|
22 |
|
|
77 |
|
Other construction |
— |
|
|
— |
|
|
(142 |
) |
|
— |
|
|
— |
|
Total land, lot and other construction |
(871 |
) |
|
(774 |
) |
|
(645 |
) |
|
29 |
|
|
900 |
|
Owner occupied |
(168 |
) |
|
(82 |
) |
|
(479 |
) |
|
57 |
|
|
225 |
|
Non-owner occupied |
3,030 |
|
|
246 |
|
|
2,015 |
|
|
3,086 |
|
|
56 |
|
Total commercial real estate |
2,862 |
|
|
164 |
|
|
1,536 |
|
|
3,143 |
|
|
281 |
|
Commercial and industrial |
1,533 |
|
|
740 |
|
|
1,472 |
|
|
2,278 |
|
|
745 |
|
Agriculture |
337 |
|
|
309 |
|
|
21 |
|
|
345 |
|
|
8 |
|
1st lien |
69 |
|
|
(27 |
) |
|
(12 |
) |
|
127 |
|
|
58 |
|
Junior lien |
(211 |
) |
|
(169 |
) |
|
(303 |
) |
|
27 |
|
|
238 |
|
Total 1-4 family |
(142 |
) |
|
(196 |
) |
|
(315 |
) |
|
154 |
|
|
296 |
|
Multifamily residential |
(244 |
) |
|
(244 |
) |
|
— |
|
|
— |
|
|
244 |
|
Home equity lines of credit |
101 |
|
|
79 |
|
|
19 |
|
|
350 |
|
|
249 |
|
Other consumer |
307 |
|
|
233 |
|
|
603 |
|
|
604 |
|
|
297 |
|
Total consumer |
408 |
|
|
312 |
|
|
622 |
|
|
954 |
|
|
546 |
|
Other |
3,803 |
|
|
2,589 |
|
|
4,035 |
|
|
6,905 |
|
|
3,102 |
|
Total |
$ |
7,653 |
|
|
2,872 |
|
|
6,806 |
|
|
13,808 |
|
|
6,155 |
|
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