NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: Michael J. Blodnick
(406) 751-4701
Ron J. Copher
(406) 751-7706
GLACIER BANCORP, INC. ANNOUNCES
RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2013
HIGHLIGHTS:
• | Net Income of $26.5 million for the current quarter increased 28 percent from the prior year fourth quarter and net income of $95.6 million for the current year increased 27 percent from the prior year. |
• | Dividend declared of $0.16 per share during the current quarter, the third increase since December 2012, totaling 23 percent. |
• | Glacier Bancorp, Inc. stock price of $29.79 at December 31, 2013 increased 21 percent from the prior quarter and 103 percent from the prior year. |
• | The loan portfolio increased $61.7 million, or 6 percent annualized, during the current quarter. Excluding the acquisitions, the loan portfolio increased $278 million, or 8 percent, during the current year. |
• | Transaction deposit accounts of $3.1 billion increased $103 million, or 14 percent annualized, during the current quarter. |
• | Current quarter net interest margin, on a tax-equivalent basis, of 3.88 percent, an increase of 32 basis points from the prior quarter net interest margin of 3.56 percent. |
• | Interest income for the current quarter of $73.9 million, an increase of 6 percent from the prior quarter, and interest income for the current year of $264 million, an increase of 4 percent from the prior year. |
Results Summary
Three Months ended | Year ended | ||||||||||||||
(Dollars in thousands, except per share data) | December 31, 2013 | September 30, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | ||||||||||
Net income | $ | 26,546 | 25,628 | 20,758 | 95,644 | 75,516 | |||||||||
Diluted earnings per share | $ | 0.36 | 0.35 | 0.29 | 1.31 | 1.05 | |||||||||
Return on average assets (annualized) | 1.33 | % | 1.27 | % | 1.06 | % | 1.23 | % | 1.01 | % | |||||
Return on average equity (annualized) | 10.96 | % | 10.85 | % | 9.17 | % | 10.22 | % | 8.54 | % |
1
KALISPELL, MONTANA, January 23, 2014 - Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net income of $26.5 million for the current quarter, an increase of $5.8 million, or 28 percent, from the $20.8 million of net income for the prior year fourth quarter. Diluted earnings per share for the current quarter was $0.36 per share, an increase of $0.07, or 24 percent, from the prior year fourth quarter diluted earnings per share of $0.29. “The fourth quarter added to what was a very good year for Glacier Bancorp Inc., as stronger than anticipated loan growth and a much higher net interest margin allowed us to continue to deliver better results,” said Mick Blodnick President and Chief Executive Officer. “In the current quarter we were again fortunate to be able to increase our dividend. This was the third time since December of last year the dividend has been raised. During that period we have increased our dividend by a total of 23 percent,” Blodnick said.
Net income for the year ended December 31, 2013 was $95.6 million, an increase of $20.1 million, or 27 percent, from the $75.5 million of net income for the prior year. Diluted earnings per share for the current year was $1.31 per share, an increase of $0.26, or 25 percent, from the diluted earnings per share in the prior year.
On July 31, 2013, the Company completed the acquisition of North Cascades Bancshares, Inc. (“NCBI”), and its subsidiary, North Cascades National Bank and on May 31, 2013 the Company completed the acquisition of Wheatland Bankshares, Inc., and its subsidiary, First State Bank (“Wheatland”). The Company incurred $427 thousand of expense in connection with the acquisitions in the current quarter and $1.5 million for the year ended December 31, 2013. The Company’s results of operations and financial condition include the acquisition of NCBI and the acquisition of Wheatland from the acquisition dates. The following table provides information on the fair value of selected classifications of assets and liabilities acquired:
NCBI | Wheatland | ||||||||||
(Dollars in thousands) | July 31, 2013 | May 31, 2013 | Total | ||||||||
Total assets | $ | 330,028 | $ | 300,541 | $ | 630,569 | |||||
Investment securities, available-for-sale | 48,058 | 75,643 | 123,701 | ||||||||
Loans receivable | 215,986 | 171,199 | 387,185 | ||||||||
Non-interest bearing deposits | 76,105 | 30,758 | 106,863 | ||||||||
Interest bearing deposits | 218,875 | 224,439 | 443,314 | ||||||||
Federal Home Loan Bank advances | — | 5,467 | 5,467 |
2
Asset Summary
$ Change from | $ Change from | ||||||||||||||
(Dollars in thousands) | December 31, 2013 | September 30, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2012 | ||||||||||
Cash and cash equivalents | $ | 155,657 | 254,684 | 187,040 | (99,027 | ) | (31,383 | ) | |||||||
Investment securities, available-for-sale | 3,222,829 | 3,318,953 | 3,683,005 | (96,124 | ) | (460,176 | ) | ||||||||
Loans receivable | |||||||||||||||
Residential real estate | 577,589 | 583,817 | 516,467 | (6,228 | ) | 61,122 | |||||||||
Commercial | 2,901,283 | 2,828,287 | 2,278,905 | 72,996 | 622,378 | ||||||||||
Consumer and other | 583,966 | 588,995 | 602,053 | (5,029 | ) | (18,087 | ) | ||||||||
Loans receivable | 4,062,838 | 4,001,099 | 3,397,425 | 61,739 | 665,413 | ||||||||||
Allowance for loan and lease losses | (130,351 | ) | (130,765 | ) | (130,854 | ) | 414 | 503 | |||||||
Loans receivable, net | 3,932,487 | 3,870,334 | 3,266,571 | 62,153 | 665,916 | ||||||||||
Other assets | 573,377 | 603,959 | 610,824 | (30,582 | ) | (37,447 | ) | ||||||||
Total assets | $ | 7,884,350 | 8,047,930 | 7,747,440 | (163,580 | ) | 136,910 |
Investment securities decreased $96 million, or 3 percent, during the current quarter and decreased $460 million, or 12 percent, from December 31, 2012 as the Company continued to reduce the overall size of the investment portfolio. The continued growth in the loan portfolio provides the Company the opportunity to retain higher yielding assets than what the Company could achieve with investment securities. At December 31, 2013, investment securities represented 41 percent of total assets, down from 48 percent at December 31, 2012.
A positive trend for the four consecutive quarters has been the organic loan growth. Loans receivable increased $61.7 million, or 2 percent, during the current quarter, including growth of $73.0 million in commercial loans. Excluding the loans receivable from the acquisitions, the loan portfolio increased $278 million, or 8 percent, during the current year with increases in both residential real estate and commercial loans. Excluding the acquisitions, the largest dollar increase during the current year was in commercial loans which increased $294 million, or 13 percent, of which $200 million of the increase was in commercial real estate loans. The decreases in consumer and other loans was primarily attributable to customers paying off home equity lines of credit as they refinanced their first mortgage.
3
Credit Quality Summary
At or for the Year ended | At or for the Nine Months ended | At or for the Year ended | |||||||
(Dollars in thousands) | December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||
Allowance for loan and lease losses | |||||||||
Balance at beginning of period | $ | 130,854 | 130,854 | 137,516 | |||||
Provision for loan losses | 6,887 | 5,085 | 21,525 | ||||||
Charge-offs | (13,643 | ) | (8,962 | ) | (34,672 | ) | |||
Recoveries | 6,253 | 3,788 | 6,485 | ||||||
Balance at end of period | $ | 130,351 | 130,765 | 130,854 | |||||
Other real estate owned | $ | 26,860 | 36,531 | 45,115 | |||||
Accruing loans 90 days or more past due | 604 | 174 | 1,479 | ||||||
Non-accrual loans | 81,956 | 88,293 | 96,933 | ||||||
Total non-performing assets 1 | $ | 109,420 | 124,998 | 143,527 | |||||
Non-performing assets as a percentage of subsidiary assets | 1.39 | % | 1.56 | % | 1.87 | % | |||
Allowance for loan and lease losses as a percentage of non-performing loans | 158 | % | 148 | % | 133 | % | |||
Allowance for loan and lease losses as a percentage of total loans | 3.21 | % | 3.27 | % | 3.85 | % | |||
Net charge-offs as a percentage of total loans | 0.18 | % | 0.13 | % | 0.83 | % | |||
Accruing loans 30-89 days past due | $ | 32,116 | 26,401 | 27,097 |
__________
1 As of December 31, 2013, non-performing assets have not been reduced by U.S. government guarantees of $5.4 million.
Non-performing assets at December 31, 2013 were $109 million, a decrease of $15.6 million, or 12 percent, during the current quarter and a decrease of $34.1 million, or 24 percent, from a year ago. The largest category of non-performing assets was the land, lot and other construction category (i.e., regulatory classification) which was $51.6 million, or 47 percent, of the non-performing assets at December 31, 2013. Included in this category was $25.1 million of land development loans and $13.6 million in unimproved land loans at December 31, 2013. The Company has continued to reduce its exposure to land, lot and other construction category over each of the prior two years. The Company’s early stage delinquencies (accruing loans 30-89 days past due) of $32.1 million at December 31, 2013 increased $5.7 million, or 22 percent, from the prior quarter and increased $5.0 million, or 19 percent, from the prior year fourth quarter.
“We made further strides in lowering our non-performing assets as a number of projects were sold or paid off during the current quarter,” said Blodnick. “Net charge-offs have been a pleasant surprise all year as we experienced a significant decline in charge-offs while at the same time recoveries were much better than projected. For the year net charge-offs were back to historical norms after four years at elevated levels,” Blodnick said.
4
At December 31, 2013, the allowance for loan and lease losses (“allowance”) was $130 million, a decrease of $414 thousand, or less than 1 percent from September 30, 2013, and a decrease of $503 thousand, or less than 1 percent from a year ago. The allowance was 3.21 percent of total loans outstanding at December 31, 2013, a decrease of 64 basis points from 3.85 percent at December 31, 2012. Such difference was primarily attributable to no allowance carried over from the acquisitions as a result of the acquired loans recorded at fair value. Excluding the acquired banks, the allowance was 3.54 percent of total loans outstanding at December 31, 2013, a 31 basis points decrease from the 3.85 percent at December 31, 2012. The allowance was 158 percent of non-performing loans at December 31, 2013, an increase from 148 percent at September 30, 2013 and an increase from 133 percent at December 31, 2012.
Credit Quality Trends and Provision for Loan Losses
(Dollars in thousands) | Provision for Loan Losses | Net Charge-Offs | ALLL as a Percent of Loans | Accruing Loans 30-89 Days Past Due as a Percent of Loans | Non-Performing Assets to Total Subsidiary Assets | ||||||||||
Fourth quarter 2013 | $ | 1,802 | 2,216 | 3.21 | % | 0.79 | % | 1.39 | % | ||||||
Third quarter 2013 | 1,907 | 2,025 | 3.27 | % | 0.66 | % | 1.56 | % | |||||||
Second quarter 2013 | 1,078 | 1,030 | 3.56 | % | 0.60 | % | 1.64 | % | |||||||
First quarter 2013 | 2,100 | 2,119 | 3.84 | % | 0.95 | % | 1.79 | % | |||||||
Fourth quarter 2012 | 2,275 | 8,081 | 3.85 | % | 0.80 | % | 1.87 | % | |||||||
Third quarter 2012 | 2,700 | 3,499 | 4.01 | % | 0.83 | % | 2.33 | % | |||||||
Second quarter 2012 | 7,925 | 7,052 | 3.99 | % | 1.41 | % | 2.69 | % | |||||||
First quarter 2012 | 8,625 | 9,555 | 3.98 | % | 1.24 | % | 2.91 | % |
Net charged-off loans of $2.2 million during the current quarter increased $191 thousand, or 9 percent, compared to the prior quarter and decreased $5.9 million, or 73 percent, from the prior year fourth quarter. The current quarter provision for loan losses of $1.8 million decreased $105 thousand from the prior quarter and decreased $473 thousand from the prior year fourth quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of provision for loan loss expense.
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.
5
Liability Summary
$ Change from | $ Change from | ||||||||||||||
(Dollars in thousands) | December 31, 2013 | September 30, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2012 | ||||||||||
Non-interest bearing deposits | $ | 1,374,419 | 1,397,401 | 1,191,933 | (22,982 | ) | 182,486 | ||||||||
Interest bearing deposits | 4,205,548 | 4,215,479 | 4,172,528 | (9,931 | ) | 33,020 | |||||||||
Repurchase agreements | 313,394 | 314,313 | 289,508 | (919 | ) | 23,886 | |||||||||
FHLB advances | 840,182 | 967,382 | 997,013 | (127,200 | ) | (156,831 | ) | ||||||||
Other borrowed funds | 8,387 | 8,466 | 10,032 | (79 | ) | (1,645 | ) | ||||||||
Subordinated debentures | 125,562 | 125,526 | 125,418 | 36 | 144 | ||||||||||
Other liabilities | 53,608 | 71,556 | 60,059 | (17,948 | ) | (6,451 | ) | ||||||||
Total liabilities | $ | 6,921,100 | 7,100,123 | 6,846,491 | (179,023 | ) | 74,609 |
Non-interest bearing deposits of $1.374 billion at December 31, 2013 decreased $23.0 million, or 2 percent, during the current quarter. Excluding the acquisitions, non-interest bearing deposits at December 31, 2013 increased $75.6 million, or 6 percent, during the current year. Interest bearing deposits of $4.206 billion at December 31, 2013 included $205 million of wholesale deposits (i.e., brokered deposits classified as NOW, money market deposit and certificate accounts). Excluding a decrease of $123 million in wholesale deposits during the current quarter, interest bearing deposits at December 31, 2013 increased $113 million, or 3 percent, during the current quarter. Excluding the acquisitions, interest bearing deposits at December 31, 2013 decreased $410 million, or 10 percent, from December 31, 2012 primarily the result of a decrease of $429 million in wholesale deposits. Federal Home Loan Bank (“FHLB”) advances of $840 million at December 31, 2013 decreased $127 million, or 13 percent, during the current quarter and decreased $157 million, or 16 percent, from prior year end and will continue to fluctuate as the need for funding changes.
Stockholders’ Equity Summary
$ Change from | $ Change from | ||||||||||||||
(Dollars in thousands, except per share data) | December 31, 2013 | September 30, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2012 | ||||||||||
Common equity | $ | 953,605 | 937,824 | 852,987 | 15,781 | 100,618 | |||||||||
Accumulated other comprehensive income | 9,645 | 9,983 | 47,962 | (338 | ) | (38,317 | ) | ||||||||
Total stockholders’ equity | 963,250 | 947,807 | 900,949 | 15,443 | 62,301 | ||||||||||
Goodwill and core deposit intangible, net | (139,218 | ) | (139,934 | ) | (112,274 | ) | 716 | (26,944 | ) | ||||||
Tangible stockholders’ equity | $ | 824,032 | 807,873 | 788,675 | 16,159 | 35,357 | |||||||||
Stockholders’ equity to total assets | 12.22 | % | 11.78 | % | 11.63 | % | |||||||||
Tangible stockholders’ equity to total tangible assets | 10.64 | % | 10.22 | % | 10.33 | % | |||||||||
Book value per common share | $ | 12.95 | 12.76 | 12.52 | 0.19 | 0.43 | |||||||||
Tangible book value per common share | $ | 11.08 | 10.87 | 10.96 | 0.21 | 0.12 | |||||||||
Market price per share at end of period | $ | 29.79 | 24.68 | 14.71 | 5.11 | 15.08 |
6
Tangible stockholders’ equity of $824 million at year end increased $16.2 million from the prior quarter and $35.4 million, or 4 percent, from the prior year end. The higher capital levels were the result of $45 million of Company stock issued in connection with the acquisitions and an increase in earnings retention of $51.4 million which were offset by the decrease in accumulated other comprehensive income of $38.3 million. Tangible book value per common share of $11.08 increased $0.12 per share from the prior year end.
Cash Dividend
On November 26, 2013, the Company’s Board of Directors declared a cash dividend of $0.16 per share, payable December 19, 2013 to shareholders of record on December 10, 2013. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.
7
Operating Results for Three Months Ended December 31, 2013
Compared to September 30, 2013 and December 31, 2012
Revenue Summary
Three Months ended | |||||||||||
(Dollars in thousands) | December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||||
Net interest income | |||||||||||
Interest income | $ | 73,939 | 69,531 | 59,666 | |||||||
Interest expense | 6,929 | 7,186 | 8,165 | ||||||||
Total net interest income | 67,010 | 62,345 | 51,501 | ||||||||
Non-interest income | |||||||||||
Service charges, loan fees, and other fees | 14,695 | 15,119 | 12,845 | ||||||||
Gain on sale of loans | 4,935 | 7,021 | 9,164 | ||||||||
Loss on sale of investments | — | (403 | ) | — | |||||||
Other income | 3,372 | 2,136 | 3,384 | ||||||||
Total non-interest income | 23,002 | 23,873 | 25,393 | ||||||||
$ | 90,012 | 86,218 | 76,894 | ||||||||
Net interest margin (tax-equivalent) | 3.88 | % | 3.56 | % | 3.05 | % |
$ Change from | $ Change from | % Change from | % Change from | ||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2012 | |||||||||
Net interest income | |||||||||||||
Interest income | $ | 4,408 | $ | 14,273 | 6 | % | 24 | % | |||||
Interest expense | (257 | ) | (1,236 | ) | (4 | )% | (15 | )% | |||||
Total net interest income | 4,665 | 15,509 | 7 | % | 30 | % | |||||||
Non-interest income | |||||||||||||
Service charges, loan fees, and other fees | (424 | ) | 1,850 | (3 | )% | 14 | % | ||||||
Gain on sale of loans | (2,086 | ) | (4,229 | ) | (30 | )% | (46 | )% | |||||
Loss on sale of investments | 403 | — | (100 | )% | n/m | ||||||||
Other income | 1,236 | (12 | ) | 58 | % | — | % | ||||||
Total non-interest income | (871 | ) | (2,391 | ) | (4 | )% | (9 | )% | |||||
$ | 3,794 | $ | 13,118 | 4 | % | 17 | % |
_______ |
n/m - not measurable |
8
Net Interest Income
The current quarter interest income of $73.9 million increased $4.4 million, or 6 percent, over the prior quarter primarily as a result of the increase in interest income from investments. The current quarter increase in interest income on the investment portfolio was driven by a decrease in premium amortization (net of discount accretion) on the investment securities (“premium amortization”). The Company experienced a decrease in premium amortization for a fourth consecutive quarter, compared to significant increases experienced during the preceding seven quarters. Included in the current quarter’s interest income was $9.0 million of premium amortization on investment securities compares to $15.2 million in the prior quarter. The current quarter’s $6.2 million decrease in premium amortization compared to a decrease of $3.2 million in premium amortization in the prior quarter. The current quarter interest income also increased as a result of increases in interest income on residential real estate loans and commercial loans. The increase in interest income on residential real estate loans during the current quarter resulted from both volume and rate increases and the increase in commercial loan interest income was the result of volume increases.
The current quarter interest income of $73.9 million also increased $14.3 million, or 24 percent, over the prior year fourth quarter and was driven by the increase in interest income on the investment portfolio and the increase in interest income on commercial loans. Interest income on investment securities of $23.5 million increased $9.6 million, or 69 percent, over the prior year fourth quarter as premium amortization decreased $14.3 million. The latest quarters interest income on commercial loans of $34.7 million increased $5.0 million, or 17 percent, over the prior year fourth quarter as a result of increased volume of commercial loans.
In the fourth quarter, interest expense of $6.9 million decreased $257 thousand, or 4 percent, from the prior quarter and decreased $1.2 million, or 15 percent, from the prior year fourth quarter. The decrease in interest expense from the prior quarter and the prior year quarter was the result of decreases in deposit interest rates and a decrease in the volume of borrowings. The cost of total funding (including non-interest bearing deposits) for the current quarter was 40 basis points compared to 41 basis points for the prior quarter and 48 basis points for the prior year fourth quarter.
This quarter’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, was 3.88 percent, an increase of 32 basis points from the prior quarter net interest margin of 3.56 percent. The increase in the net interest margin was driven by the increasing yield on the investment securities and a shift in the earning assets from investment securities to the higher yielding loan portfolio. The current quarter increase in the investment securities yield was primarily attributable to a decrease in the premium amortization which was consistent with the prior quarter. Of the 69 basis points increase in yield on the investment securities during the current quarter, 61 basis points was due to the decrease in premium amortization. The premium amortization in the current quarter accounted for a 51 basis points reduction in the net interest margin compared to a 82 basis points reduction in the prior quarter and 128 basis points reduction in the net interest margin in the prior year fourth quarter. “Growth in the Bank's loan portfolio throughout the year was significant to the improvement in the net interest income and net interest margin for the current quarter and 2013,” said Ron Copher, Chief Financial Officer. “The reduction in premium amortization from investment securities over the course of 2013 was also a significant factor.”
9
Non-interest Income
Non-interest income for the current quarter totaled $23.0 million, a decrease of $871 thousand over the prior quarter and a decrease of $2.4 million over the same quarter last year. Service charge fee income decreased $424 thousand, or 3 percent, from the prior quarter due to seasonal activity. Service charge fee income increased $1.9 million, or 14 percent, from the prior year fourth quarter which was driven by increases in deposit accounts and changes in internal deposit processing. A gain of $4.9 million on the sale of loans in the current quarter was a reduction of $2.1 million, or 30 percent, from the prior quarter and a decrease of $4.2 million, or 46 percent, from the prior year fourth quarter. The Company continued to experience a slowdown in refinance activity as mortgage rates moved up, although, the decrease in gain on sale of loans was more than offset by the decrease in premium amortization on investment securities, both of which were attributable to the continuing slowdown of refinance activity. Other income of $3.4 million for the current quarter increased $1.2 million, or 58 percent, from the prior quarter primarily as a result of an increase in income related to other real estate owned (“OREO”). Included in other income was operating revenue of $153 thousand from OREO and a gain of $1.4 million on the sales of OREO, the combined total of $1.6 million for the most recent quarter compared to $433 thousand for the prior quarter and $910 thousand for the prior year fourth quarter.
Non-interest Expense Summary
Three Months ended | |||||||||||
(Dollars in thousands) | December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||||
Compensation and employee benefits | $ | 27,258 | 27,469 | 24,083 | |||||||
Occupancy and equipment | 6,723 | 6,421 | 6,043 | ||||||||
Advertising and promotions | 1,847 | 1,897 | 1,478 | ||||||||
Outsourced data processing | 1,623 | 1,232 | 889 | ||||||||
Other real estate owned | 2,295 | 1,049 | 3,570 | ||||||||
Regulatory assessments and insurance | 1,519 | 1,677 | 1,637 | ||||||||
Core deposit intangibles amortization | 717 | 693 | 491 | ||||||||
Other expense | 11,052 | 9,930 | 9,817 | ||||||||
Total non-interest expense | $ | 53,034 | 50,368 | 48,008 |
$ Change from | $ Change from | % Change from | % Change from | ||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2012 | |||||||||
Compensation and employee benefits | $ | (211 | ) | $ | 3,175 | (1 | )% | 13 | % | ||||
Occupancy and equipment | 302 | 680 | 5 | % | 11 | % | |||||||
Advertising and promotions | (50 | ) | 369 | (3 | )% | 25 | % | ||||||
Outsourced data processing | 391 | 734 | 32 | % | 83 | % | |||||||
Other real estate owned | 1,246 | (1,275 | ) | 119 | % | (36 | )% | ||||||
Regulatory assessments and insurance | (158 | ) | (118 | ) | (9 | )% | (7 | )% | |||||
Core deposit intangibles amortization | 24 | 226 | 3 | % | 46 | % | |||||||
Other expense | 1,122 | 1,235 | 11 | % | 13 | % | |||||||
Total non-interest expense | $ | 2,666 | $ | 5,026 | 5 | % | 10 | % |
Non-interest expense of $53.0 million for the current quarter increased by $2.7 million, or 5 percent, from the prior quarter and increased by $5.0 million, or 10 percent, from the prior year fourth quarter. Compensation and employee benefits increased by $3.2 million, or 13 percent, from the prior year fourth quarter primarily as a result of the acquisitions. Occupancy and equipment expense increased $302 thousand, or 5 percent, from the prior quarter
10
and increased $680 thousand, or 11 percent, from the prior year fourth quarter as a result of the acquisitions. Outsourced data processing expense increased $391 thousand, or 32 percent, from the prior quarter and increased $734 thousand, or 83 percent, from the prior year fourth quarter again as a result of the acquired banks’ outsourced data processing expense. OREO expense increased $1.2 million, or 119 percent, from the prior quarter and decreased $1.3 million, or 36 percent, from the prior year fourth quarter. The current quarter OREO expense of $2.3 million included $679 thousand of operating expense, $1.3 million of fair value write-downs, and $341 thousand of loss on sale of OREO. OREO expense will fluctuate as the Company continues to work through non-performing loans and dispose of foreclosed properties. Other expense increased by $1.1 million, or 11 percent, over the prior quarter primarily as a result of increases in loan repurchase losses and debit card fraud losses which were partially offset by decreases in professional and outside services expenses. Other expense increased $1.2 million, or 13 percent, from the prior year fourth quarter primarily from debit card fraud losses and other deposit account related losses.
Efficiency Ratio
The efficiency ratio for the current quarter was 54 percent compared to 56 percent for the prior year fourth quarter. The decrease in the efficiency ratio was primarily driven by the increase in net interest income which exceeded the increase non-interest expense.
Operating Results for Year ended December 31, 2013
Compared to December 31, 2012
Revenue Summary
Year ended | ||||||||||||||
(Dollars in thousands) | December 31, 2013 | December 31, 2012 | $ Change | % Change | ||||||||||
Net interest income | ||||||||||||||
Interest income | $ | 263,576 | $ | 253,757 | $ | 9,819 | 4 | % | ||||||
Interest expense | 28,758 | 35,714 | (6,956 | ) | (19 | )% | ||||||||
Total net interest income | 234,818 | 218,043 | 16,775 | 8 | % | |||||||||
Non-interest income | ||||||||||||||
Service charges, loan fees, and other fees | 54,460 | 49,706 | 4,754 | 10 | % | |||||||||
Gain on sale of loans | 28,517 | 32,227 | (3,710 | ) | (12 | )% | ||||||||
Loss on sale of investments | (299 | ) | — | (299 | ) | n/m | ||||||||
Other income | 10,369 | 9,563 | 806 | 8 | % | |||||||||
Total non-interest income | 93,047 | 91,496 | 1,551 | 2 | % | |||||||||
$ | 327,865 | $ | 309,539 | $ | 18,326 | 6 | % | |||||||
Net interest margin (tax-equivalent) | 3.48 | % | 3.37 | % |
_______ |
n/m - not measurable |
11
Net Interest Income
Net interest income for 2013 increased $16.8 million, or 8 percent, over last year. Interest income for the current year increased $9.8 million, or 4 percent, from the prior year and was principally due to the increased volume of commercial loans in addition to the decrease in premium amortization on investment securities, which were partially reduced by the decrease in yields on the loan portfolio. Interest income was reduced by $64.1 million in premium amortization on investment securities during the current year which was a decrease of $7.9 million from the prior year.
Interest expense for 2013 decreased $7.0 million, or 19 percent, from the prior year and was primarily attributable to the decreases in interest rates on interest bearing deposits and borrowings. The funding cost (including non-interest bearing deposits) for the current year was 42 basis points compared to 55 basis points for the prior year.
The net interest margin, on a tax-equivalent basis, for 2013 was 3.48 percent, an 11 basis points increase from the net interest margin of 3.37 percent for 2012. The increase in the net interest margin was driven by the decreased interest rates on deposits and borrowings. The net interest margin was further supported by the continued shift in earning assets from investment securities to the higher yielding loan portfolio and the increased yield on the investment securities. The increased yield on investment securities was driven by lower premium amortization on investment securities. The premium amortization for 2013 accounted for a 90 basis points reduction in the net interest margin, which was a decrease of 14 basis points compared to the 104 basis points reduction in the net interest margin for last year.
Non-interest Income
Non-interest income of $93.0 million for 2013 increased $1.6 million, or 2 percent, over last year. Service charge fee income increased $4.8 million, or 10 percent, from the prior year which was driven by increases in the number of deposit accounts and changes in internal deposit processing. Gains of $28.5 million on the sale of loans for the current year decreased $3.7 million, or 12 percent, from the prior year as a result of the slowdown in refinance activity. Other income for the current year increased $806 thousand, or 8 percent, over the the prior year. Included in other income was operating revenue of $400 thousand from OREO and gains of $3.1 million on the sale of OREO, which combined totaled $3.5 million for the current year compared to $2.4 million for the prior year.
Non-interest Expense Summary
Year ended | ||||||||||||
(Dollars in thousands) | December 31, 2013 | December 31, 2012 | $ Change | % Change | ||||||||
Compensation and employee benefits | $ | 104,221 | 95,373 | 8,848 | 9 | % | ||||||
Occupancy and equipment | 24,875 | 23,837 | 1,038 | 4 | % | |||||||
Advertising and promotions | 6,913 | 6,413 | 500 | 8 | % | |||||||
Outsourced data processing | 4,493 | 3,324 | 1,169 | 35 | % | |||||||
Other real estate owned | 7,196 | 18,964 | (11,768 | ) | (62 | )% | ||||||
Regulatory assessments and insurance | 6,362 | 7,313 | (951 | ) | (13 | )% | ||||||
Core deposit intangibles amortization | 2,401 | 2,110 | 291 | 14 | % | |||||||
Other expense | 38,856 | 36,087 | 2,769 | 8 | % | |||||||
Total non-interest expense | $ | 195,317 | 193,421 | 1,896 | 1 | % |
12
Compensation and employee benefits for 2013 increased $8.8 million, or 9 percent, from the same period last year. Outsourced data processing expense increased $1.2 million, or 35 percent, from the prior year primarily from the acquired banks outsourced data processing expense. OREO expense of $7.2 million in the current year decreased $11.8 million, or 62 percent, from the prior year. The OREO expense for the current year included $2.7 million of operating expenses, $3.6 million of fair value write-downs, and $880 thousand of loss on sale of OREO. Other expense for the current year increased by $2.8 million, or 8 percent, from the prior year and was attributable to the legal and professional expenses associated with the acquisitions, debit card fraud losses and deposit account losses.
Provision for loan losses
The provision for loan losses was $6.9 million for 2013, a decrease of $14.6 million, or 68 percent, from the same period in the prior year. Net charged-off loans during the current year were $7.4 million, a decrease of $20.8 million from the prior year.
Efficiency Ratio
The efficiency ratio was 55 percent for 2013 and 54 percent for 2012. Although there was an increase net interest income during the current year over the prior year, it was not enough to offset the increase in non-interest expense, excluding OREO expense, resulting in the increased efficiency ratio.
About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is a regional bank holding company providing commercial banking services in 72 communities in Montana, Idaho, Utah, Washington, Wyoming and Colorado. Glacier Bancorp, Inc. is headquartered in Kalispell, Montana, and is the parent company for Glacier Bank, Kalispell and bank divisions First Security Bank of Missoula; Valley Bank of Helena; Big Sky Western Bank, Bozeman; Western Security Bank, Billings; and First Bank of Montana, Lewistown; all operating in Montana; as well as Mountain West Bank, Coeur d’Alene operating in Idaho, Utah and Washington; Citizens Community Bank, Pocatello, operating in Idaho; 1st Bank, Evanston, operating in Wyoming and Utah; First Bank of Wyoming, Powell and First State Bank, Wheatland, operating in Wyoming; North Cascades Bank, Chelan, operating in Washington; and Bank of the San Juans, Durango, operating in Colorado.
Forward Looking Statements
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about management’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or words of similar meaning. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations in the forward-looking statements, including those set forth in this news release:
• | the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio, including as a result of a slow recovery in the housing and real estate markets in its geographic areas; |
• | increased loan delinquency rates; |
• | the risks presented by a slow economic recovery, which could adversely affect credit quality, loan collateral values, other real estate owned values, investment values, liquidity and capital levels, dividends and loan originations; |
• | changes in market interest rates, which could adversely affect the Company’s net interest income and profitability; |
13
• | legislative or regulatory changes that adversely affect the Company’s business, ability to complete pending or prospective future acquisitions, limit certain sources of revenue, or increase cost of operations; |
• | costs or difficulties related to the completion and integration of acquisitions; |
• | the goodwill the Company has recorded in connection with acquisitions could become additionally impaired, which may have an adverse impact on earnings and capital; |
• | reduced demand for banking products and services; |
• | the risks presented by public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital in the future; |
• | competition from other financial services companies in the Company’s markets; |
• | loss of services from the CEO and senior management team; |
• | potential interruption or breach in security of the Company’s systems; 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 it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.
14
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data) | December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||
Assets | |||||||||
Cash on hand and in banks | $ | 109,995 | 130,285 | 123,270 | |||||
Federal funds sold | 10,527 | 23,135 | — | ||||||
Interest bearing cash deposits | 35,135 | 101,264 | 63,770 | ||||||
Cash and cash equivalents | 155,657 | 254,684 | 187,040 | ||||||
Investment securities, available-for-sale | 3,222,829 | 3,318,953 | 3,683,005 | ||||||
Loans held for sale | 46,738 | 61,505 | 145,501 | ||||||
Loans receivable | 4,062,838 | 4,001,099 | 3,397,425 | ||||||
Allowance for loan and lease losses | (130,351 | ) | (130,765 | ) | (130,854 | ) | |||
Loans receivable, net | 3,932,487 | 3,870,334 | 3,266,571 | ||||||
Premises and equipment, net | 167,671 | 168,633 | 158,989 | ||||||
Other real estate owned | 26,860 | 36,531 | 45,115 | ||||||
Accrued interest receivable | 41,898 | 44,261 | 37,770 | ||||||
Deferred tax asset | 43,549 | 47,957 | 20,394 | ||||||
Core deposit intangible, net | 9,512 | 10,228 | 6,174 | ||||||
Goodwill | 129,706 | 129,706 | 106,100 | ||||||
Non-marketable equity securities | 52,192 | 52,192 | 48,812 | ||||||
Other assets | 55,251 | 52,946 | 41,969 | ||||||
Total assets | $ | 7,884,350 | 8,047,930 | 7,747,440 | |||||
Liabilities | |||||||||
Non-interest bearing deposits | $ | 1,374,419 | 1,397,401 | 1,191,933 | |||||
Interest bearing deposits | 4,205,548 | 4,215,479 | 4,172,528 | ||||||
Securities sold under agreements to repurchase | 313,394 | 314,313 | 289,508 | ||||||
Federal Home Loan Bank advances | 840,182 | 967,382 | 997,013 | ||||||
Other borrowed funds | 8,387 | 8,466 | 10,032 | ||||||
Subordinated debentures | 125,562 | 125,526 | 125,418 | ||||||
Accrued interest payable | 3,505 | 3,568 | 4,675 | ||||||
Other liabilities | 50,103 | 67,988 | 55,384 | ||||||
Total liabilities | 6,921,100 | 7,100,123 | 6,846,491 | ||||||
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 | 744 | 743 | 719 | ||||||
Paid-in capital | 690,918 | 689,751 | 641,737 | ||||||
Retained earnings - substantially restricted | 261,943 | 247,330 | 210,531 | ||||||
Accumulated other comprehensive income | 9,645 | 9,983 | 47,962 | ||||||
Total stockholders’ equity | 963,250 | 947,807 | 900,949 | ||||||
Total liabilities and stockholders’ equity | $ | 7,884,350 | 8,047,930 | 7,747,440 | |||||
Number of common stock shares issued and outstanding | 74,373,296 | 74,307,951 | 71,937,222 |
15
Glacier Bancorp, Inc.
Unaudited Condensed Consolidated Statements of Operations
Three Months ended | Year ended | ||||||||||||||
(Dollars in thousands, except per share data) | December 31, 2013 | September 30, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | ||||||||||
Interest Income | |||||||||||||||
Residential real estate loans | $ | 7,919 | 7,320 | 7,831 | 29,525 | 30,850 | |||||||||
Commercial loans | 34,662 | 34,291 | 29,661 | 127,450 | 121,425 | ||||||||||
Consumer and other loans | 7,869 | 8,447 | 8,287 | 32,089 | 35,096 | ||||||||||
Investment securities | 23,489 | 19,473 | 13,887 | 74,512 | 66,386 | ||||||||||
Total interest income | 73,939 | 69,531 | 59,666 | 263,576 | 253,757 | ||||||||||
Interest Expense | |||||||||||||||
Deposits | 3,286 | 3,398 | 4,135 | 13,870 | 18,183 | ||||||||||
Securities sold under agreements to repurchase | 221 | 209 | 311 | 867 | 1,308 | ||||||||||
Federal Home Loan Bank advances | 2,581 | 2,730 | 2,851 | 10,610 | 12,566 | ||||||||||
Federal funds purchased and other borrowed funds | 46 | 54 | 53 | 206 | 229 | ||||||||||
Subordinated debentures | 795 | 795 | 815 | 3,205 | 3,428 | ||||||||||
Total interest expense | 6,929 | 7,186 | 8,165 | 28,758 | 35,714 | ||||||||||
Net Interest Income | 67,010 | 62,345 | 51,501 | 234,818 | 218,043 | ||||||||||
Provision for loan losses | 1,802 | 1,907 | 2,275 | 6,887 | 21,525 | ||||||||||
Net interest income after provision for loan losses | 65,208 | 60,438 | 49,226 | 227,931 | 196,518 | ||||||||||
Non-Interest Income | |||||||||||||||
Service charges and other fees | 13,363 | 13,711 | 11,621 | 49,478 | 45,343 | ||||||||||
Miscellaneous loan fees and charges | 1,332 | 1,408 | 1,224 | 4,982 | 4,363 | ||||||||||
Gain on sale of loans | 4,935 | 7,021 | 9,164 | 28,517 | 32,227 | ||||||||||
Loss on sale of investments | — | (403 | ) | — | (299 | ) | — | ||||||||
Other income | 3,372 | 2,136 | 3,384 | 10,369 | 9,563 | ||||||||||
Total non-interest income | 23,002 | 23,873 | 25,393 | 93,047 | 91,496 | ||||||||||
Non-Interest Expense | |||||||||||||||
Compensation and employee benefits | 27,258 | 27,469 | 24,083 | 104,221 | 95,373 | ||||||||||
Occupancy and equipment | 6,723 | 6,421 | 6,043 | 24,875 | 23,837 | ||||||||||
Advertising and promotions | 1,847 | 1,897 | 1,478 | 6,913 | 6,413 | ||||||||||
Outsourced data processing | 1,623 | 1,232 | 889 | 4,493 | 3,324 | ||||||||||
Other real estate owned | 2,295 | 1,049 | 3,570 | 7,196 | 18,964 | ||||||||||
Regulatory assessments and insurance | 1,519 | 1,677 | 1,637 | 6,362 | 7,313 | ||||||||||
Core deposit intangibles amortization | 717 | 693 | 491 | 2,401 | 2,110 | ||||||||||
Other expense | 11,052 | 9,930 | 9,817 | 38,856 | 36,087 | ||||||||||
Total non-interest expense | 53,034 | 50,368 | 48,008 | 195,317 | 193,421 | ||||||||||
Income Before Income Taxes | 35,176 | 33,943 | 26,611 | 125,661 | 94,593 | ||||||||||
Federal and state income tax expense | 8,630 | 8,315 | 5,853 | 30,017 | 19,077 | ||||||||||
Net Income | $ | 26,546 | 25,628 | 20,758 | 95,644 | 75,516 | |||||||||
Basic earnings per share | $ | 0.36 | 0.35 | 0.29 | 1.31 | 1.05 | |||||||||
Diluted earnings per share | $ | 0.36 | 0.35 | 0.29 | 1.31 | 1.05 | |||||||||
Dividends declared per share | $ | 0.16 | 0.15 | 0.14 | 0.60 | 0.53 | |||||||||
Average outstanding shares - basic | 74,341,256 | 73,945,523 | 71,937,222 | 73,191,713 | 71,928,570 | ||||||||||
Average outstanding shares - diluted | 74,417,361 | 74,021,871 | 71,937,286 | 73,260,278 | 71,928,656 |
16
Glacier Bancorp, Inc.
Average Balance Sheet
Three Months ended | Year ended | ||||||||||||||||||||
December 31, 2013 | December 31, 2013 | ||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest & Dividends | Average Yield/ Rate | Average Balance | Interest & Dividends | Average Yield/ Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Residential real estate loans | $ | 645,567 | 7,919 | 4.91 | % | $ | 623,433 | 29,525 | 4.74 | % | |||||||||||
Commercial loans | 2,812,421 | 34,662 | 4.89 | % | 2,542,255 | 127,450 | 5.01 | % | |||||||||||||
Consumer and other loans | 579,440 | 7,869 | 5.39 | % | 586,649 | 32,089 | 5.47 | % | |||||||||||||
Total loans 1 | 4,037,428 | 50,450 | 4.96 | % | 3,752,337 | 189,064 | 5.04 | % | |||||||||||||
Tax-exempt investment securities 2 | 1,159,889 | 16,567 | 5.71 | % | 1,064,457 | 61,924 | 5.82 | % | |||||||||||||
Taxable investment securities 3 | 2,217,332 | 12,386 | 2.23 | % | 2,525,317 | 33,112 | 1.31 | % | |||||||||||||
Total earning assets | 7,414,649 | 79,403 | 4.25 | % | 7,342,111 | 284,100 | 3.87 | % | |||||||||||||
Goodwill and intangibles | 139,609 | 125,315 | |||||||||||||||||||
Non-earning assets | 336,999 | 338,866 | |||||||||||||||||||
Total assets | $ | 7,891,257 | $ | 7,806,292 | |||||||||||||||||
Liabilities | |||||||||||||||||||||
Non-interest bearing deposits | $ | 1,357,572 | — | — | % | $ | 1,244,332 | — | — | % | |||||||||||
NOW accounts | 1,052,779 | 333 | 0.13 | % | 999,288 | 1,217 | 0.12 | % | |||||||||||||
Savings accounts | 591,528 | 76 | 0.05 | % | 540,495 | 276 | 0.05 | % | |||||||||||||
Money market deposit accounts | 1,167,104 | 588 | 0.20 | % | 1,075,625 | 2,169 | 0.20 | % | |||||||||||||
Certificate accounts | 1,122,565 | 2,095 | 0.74 | % | 1,114,010 | 9,039 | 0.81 | % | |||||||||||||
Wholesale deposits 4 | 291,009 | 194 | 0.26 | % | 434,249 | 1,169 | 0.27 | % | |||||||||||||
FHLB advances | 840,860 | 2,581 | 1.22 | % | 971,554 | 10,610 | 1.09 | % | |||||||||||||
Repurchase agreements, federal funds purchased and other borrowed funds | 441,260 | 1,062 | 0.95 | % | 431,046 | 4,278 | 0.99 | % | |||||||||||||
Total funding liabilities | 6,864,677 | 6,929 | 0.40 | % | 6,810,599 | 28,758 | 0.42 | % | |||||||||||||
Other liabilities | 66,015 | 59,497 | |||||||||||||||||||
Total liabilities | 6,930,692 | 6,870,096 | |||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||
Common stock | 743 | 732 | |||||||||||||||||||
Paid-in capital | 690,164 | 667,107 | |||||||||||||||||||
Retained earnings | 256,451 | 239,138 | |||||||||||||||||||
Accumulated other comprehensive income | 13,207 | 29,219 | |||||||||||||||||||
Total stockholders’ equity | 960,565 | 936,196 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,891,257 | $ | 7,806,292 | |||||||||||||||||
Net interest income (tax-equivalent) | $ | 72,474 | $ | 255,342 | |||||||||||||||||
Net interest spread (tax-equivalent) | 3.85 | % | 3.45 | % | |||||||||||||||||
Net interest margin (tax-equivalent) | 3.88 | % | 3.48 | % |
__________
1 | Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period. |
2 | Includes tax effect of $5.1 million and $19.0 million on tax-exempt investment security income for the three months and year ended December 31, 2013, respectively. |
3 | Includes tax effect of $381 thousand and $1.5 million on investment security tax credits for the three months and year ended December 31, 2013, respectively. |
4 | Wholesale deposits include brokered deposits classified as NOW, money market deposit and certificate accounts. |
17
Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification
Loans Receivable, by Loan Type | % Change from | % Change from | |||||||||||||
(Dollars in thousands) | December 31, 2013 | September 30, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2012 | ||||||||||
Custom and owner occupied construction | $ | 50,352 | 40,187 | 40,327 | 25 | % | 25 | % | |||||||
Pre-sold and spec construction | 34,217 | 38,702 | 34,970 | (12 | )% | (2 | )% | ||||||||
Total residential construction | 84,569 | 78,889 | 75,297 | 7 | % | 12 | % | ||||||||
Land development | 73,132 | 75,282 | 80,132 | (3 | )% | (9 | )% | ||||||||
Consumer land or lots | 109,175 | 111,331 | 104,229 | (2 | )% | 5 | % | ||||||||
Unimproved land | 50,422 | 51,986 | 53,459 | (3 | )% | (6 | )% | ||||||||
Developed lots for operative builders | 15,951 | 15,082 | 16,675 | 6 | % | (4 | )% | ||||||||
Commercial lots | 12,585 | 15,707 | 19,654 | (20 | )% | (36 | )% | ||||||||
Other construction | 103,807 | 99,868 | 56,109 | 4 | % | 85 | % | ||||||||
Total land, lot, and other construction | 365,072 | 369,256 | 330,258 | (1 | )% | 11 | % | ||||||||
Owner occupied | 811,479 | 815,401 | 710,161 | — | % | 14 | % | ||||||||
Non-owner occupied | 588,114 | 541,688 | 452,966 | 9 | % | 30 | % | ||||||||
Total commercial real estate | 1,399,593 | 1,357,089 | 1,163,127 | 3 | % | 20 | % | ||||||||
Commercial and industrial | 523,354 | 528,792 | 420,459 | (1 | )% | 24 | % | ||||||||
Agriculture | 279,959 | 283,801 | 145,890 | (1 | )% | 92 | % | ||||||||
1st lien | 733,406 | 738,842 | 738,854 | (1 | )% | (1 | )% | ||||||||
Junior lien | 73,348 | 76,277 | 82,083 | (4 | )% | (11 | )% | ||||||||
Total 1-4 family | 806,754 | 815,119 | 820,937 | (1 | )% | (2 | )% | ||||||||
Multifamily residential | 123,154 | 113,880 | 93,328 | 8 | % | 32 | % | ||||||||
Home equity lines of credit | 298,119 | 298,935 | 319,779 | — | % | (7 | )% | ||||||||
Other consumer | 130,758 | 128,374 | 109,019 | 2 | % | 20 | % | ||||||||
Total consumer | 428,877 | 427,309 | 428,798 | — | % | — | % | ||||||||
Other | 98,244 | 88,469 | 64,832 | 11 | % | 52 | % | ||||||||
Total loans receivable, including loans held for sale | 4,109,576 | 4,062,604 | 3,542,926 | 1 | % | 16 | % | ||||||||
Less loans held for sale 1 | (46,738 | ) | (61,505 | ) | (145,501 | ) | (24 | )% | (68 | )% | |||||
Total loans receivable | $ | 4,062,838 | 4,001,099 | 3,397,425 | 2 | % | 20 | % |
_______ |
1 Loans held for sale are primarily 1st lien 1-4 family loans. |
18
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification
Non-performing Assets, by Loan Type | Non- Accruing Loans | Accruing Loans 90 Days or More Past Due | Other Real Estate Owned | |||||||||||||||
(Dollars in thousands) | December 31, 2013 | September 30, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2013 | December 31, 2013 | ||||||||||||
Custom and owner occupied construction | $ | 1,248 | 1,270 | 1,343 | 1,248 | — | — | |||||||||||
Pre-sold and spec construction | 828 | 1,157 | 1,603 | 403 | — | 425 | ||||||||||||
Total residential construction | 2,076 | 2,427 | 2,946 | 1,651 | — | 425 | ||||||||||||
Land development | 25,062 | 25,834 | 31,471 | 15,213 | — | 9,849 | ||||||||||||
Consumer land or lots | 2,588 | 3,500 | 6,459 | 1,759 | — | 829 | ||||||||||||
Unimproved land | 13,630 | 14,977 | 19,121 | 12,194 | — | 1,436 | ||||||||||||
Developed lots for operative builders | 2,215 | 2,284 | 2,393 | 1,504 | — | 711 | ||||||||||||
Commercial lots | 2,899 | 2,978 | 1,959 | 300 | — | 2,599 | ||||||||||||
Other construction | 5,167 | 5,776 | 5,105 | 178 | — | 4,989 | ||||||||||||
Total land, lot and other construction | 51,561 | 55,349 | 66,508 | 31,148 | — | 20,413 | ||||||||||||
Owner occupied | 14,270 | 19,224 | 15,662 | 12,426 | — | 1,844 | ||||||||||||
Non-owner occupied | 4,301 | 5,453 | 4,621 | 2,908 | — | 1,393 | ||||||||||||
Total commercial real estate | 18,571 | 24,677 | 20,283 | 15,334 | — | 3,237 | ||||||||||||
Commercial and industrial | 6,400 | 7,452 | 5,970 | 6,238 | 160 | 2 | ||||||||||||
Agriculture | 3,529 | 2,488 | 6,686 | 3,064 | — | 465 | ||||||||||||
1st lien | 17,630 | 20,959 | 25,739 | 14,983 | 434 | 2,213 | ||||||||||||
Junior lien | 4,767 | 5,648 | 6,660 | 4,767 | — | — | ||||||||||||
Total 1-4 family | 22,397 | 26,607 | 32,399 | 19,750 | 434 | 2,213 | ||||||||||||
Multifamily residential | — | — | 253 | — | — | — | ||||||||||||
Home equity lines of credit | 4,544 | 5,599 | 8,041 | 4,469 | — | 75 | ||||||||||||
Other consumer | 342 | 399 | 441 | 302 | 10 | 30 | ||||||||||||
Total consumer | 4,886 | 5,998 | 8,482 | 4,771 | 10 | 105 | ||||||||||||
Total | $ | 109,420 | 124,998 | 143,527 | 81,956 | 604 | 26,860 |
19
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
Accruing 30-89 Days Delinquent Loans, by Loan Type | % Change from | % Change from | |||||||||||||
(Dollars in thousands) | December 31, 2013 | September 30, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2012 | ||||||||||
Custom and owner occupied construction | $ | 202 | — | 5 | n/m | 3,940 | % | ||||||||
Pre-sold and spec construction | — | 772 | 893 | (100 | )% | (100 | )% | ||||||||
Total residential construction | 202 | 772 | 898 | (74 | )% | (78 | )% | ||||||||
Land development | — | 917 | 191 | (100 | )% | (100 | )% | ||||||||
Consumer land or lots | 1,716 | 504 | 762 | 240 | % | 125 | % | ||||||||
Unimproved land | 615 | 311 | 422 | 98 | % | 46 | % | ||||||||
Developed lots for operative builders | 8 | 9 | 422 | (11 | )% | (98 | )% | ||||||||
Commercial lots | — | 68 | 11 | (100 | )% | (100 | )% | ||||||||
Total land, lot and other construction | 2,339 | 1,809 | 1,808 | 29 | % | 29 | % | ||||||||
Owner occupied | 5,321 | 7,261 | 5,523 | (27 | )% | (4 | )% | ||||||||
Non-owner occupied | 2,338 | 2,509 | 2,802 | (7 | )% | (17 | )% | ||||||||
Total commercial real estate | 7,659 | 9,770 | 8,325 | (22 | )% | (8 | )% | ||||||||
Commercial and industrial | 3,542 | 4,176 | 1,905 | (15 | )% | 86 | % | ||||||||
Agriculture | 1,366 | 725 | 912 | 88 | % | �� | 50 | % | |||||||
1st lien | 12,386 | 5,142 | 7,352 | 141 | % | 68 | % | ||||||||
Junior lien | 482 | 881 | 732 | (45 | )% | (34 | )% | ||||||||
Total 1-4 family | 12,868 | 6,023 | 8,084 | 114 | % | 59 | % | ||||||||
Multifamily Residential | 1,075 | 226 | — | 376 | % | n/m | |||||||||
Home equity lines of credit | 1,999 | 1,770 | 4,164 | 13 | % | (52 | )% | ||||||||
Other consumer | 1,066 | 1,130 | 1,001 | (6 | )% | 6 | % | ||||||||
Total consumer | 3,065 | 2,900 | 5,165 | 6 | % | (41 | )% | ||||||||
Total | $ | 32,116 | 26,401 | 27,097 | 22 | % | 19 | % |
_______ |
n/m - not measurable |
20
Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)
Net Charge-Offs (Recoveries), Year-to-Date Period Ending, By Loan Type | Charge-Offs | Recoveries | |||||||||||||
(Dollars in thousands) | December 31, 2013 | September 30, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2013 | ||||||||||
Custom and owner occupied construction | $ | (51 | ) | (1 | ) | 24 | — | 51 | |||||||
Pre-sold and spec construction | (10 | ) | 128 | 2,489 | 187 | 197 | |||||||||
Total residential construction | (61 | ) | 127 | 2,513 | 187 | 248 | |||||||||
Land development | (383 | ) | (97 | ) | 3,035 | 664 | 1,047 | ||||||||
Consumer land or lots | 843 | 486 | 4,003 | 1,232 | 389 | ||||||||||
Unimproved land | 715 | 435 | 636 | 770 | 55 | ||||||||||
Developed lots for operative builders | (81 | ) | (36 | ) | 1,802 | 74 | 155 | ||||||||
Commercial lots | 248 | 250 | 362 | 254 | 6 | ||||||||||
Other construction | (473 | ) | (130 | ) | — | — | 473 | ||||||||
Total land, lot and other construction | 869 | 908 | 9,838 | 2,994 | 2,125 | ||||||||||
Owner occupied | 350 | 271 | 1,312 | 1,513 | 1,163 | ||||||||||
Non-owner occupied | 397 | 375 | 597 | 516 | 119 | ||||||||||
Total commercial real estate | 747 | 646 | 1,909 | 2,029 | 1,282 | ||||||||||
Commercial and industrial | 3,096 | 1,382 | 2,651 | 4,386 | 1,290 | ||||||||||
Agriculture | 53 | 21 | 125 | 53 | — | ||||||||||
1st lien | 681 | 347 | 5,257 | 980 | 299 | ||||||||||
Junior lien | 106 | 145 | 3,464 | 352 | 246 | ||||||||||
Total 1-4 family | 787 | 492 | 8,721 | 1,332 | 545 | ||||||||||
Multifamily residential | (39 | ) | (31 | ) | 43 | — | 39 | ||||||||
Home equity lines of credit | 1,606 | 1,516 | 2,124 | 1,918 | 312 | ||||||||||
Other consumer | 324 | 109 | 262 | 731 | 407 | ||||||||||
Total consumer | 1,930 | 1,625 | 2,386 | 2,649 | 719 | ||||||||||
Other | 8 | 4 | 1 | 13 | 5 | ||||||||||
Total | $ | 7,390 | 5,174 | 28,187 | 13,643 | 6,253 |
Visit our website at www.glacierbancorp.com
21