Exhibit 99.1
Glacier Bancorp, Inc. Earnings for Quarter Ended March 31, 2004
Five-For-Four Stock Split
NOTE - All per share amounts for 2004 and 2003 have been restated to
reflect the effects of the five-for-four stock split declared.
HIGHLIGHTS:
* Earnings for quarter a record $10.610 million, up 20 percent from last
year's quarter.
* Diluted earnings per share of $.43, up 19 percent from last year's
quarter.
* Loans outstanding increased $178 million, or 14 percent,
over a year ago.
* Non-interest bearing deposits increased $59 million, or 19 percent,
over last year.
* Issued Trust Preferred securities of $45 million.
* Cash dividend of $.17 declared; which is an increase of $.04, or
31 percent over the $.13 for the same quarter last year.
* Five-for-four stock split approved by board of directors at April 28
meeting.
* Branch acquisition in Ione, Washington announced.
KALISPELL, Mont., April 28 /PRNewswire-FirstCall/ --
Earnings Summary
(Unaudited - $ in thousands, Three months
except per share data) ended March 31,
2004 2003
Net earnings $10,610 $8,848
Diluted earnings per share $0.43 $0.36
Return on average assets 1.55% 1.58%
Return on average equity 17.28% 16.41%
Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net quarterly earnings of
$10.610 million which is an increase of $1.762 million, or 20 percent, over
the $8.848 million for the first quarter of 2003. Diluted earnings per share
of $.43, is an increase of 19 percent over the per share earnings of $.36 for
the same quarter of 2003. "The first quarter was a good start to 2004," said
Mick Blodnick, President and Chief Executive Officer. "All seven of our banks
exceeded their earnings targets. Hopefully we can maintain this momentum
through the rest of the year."
Return on average assets and return on average equity for the quarter were
1.55 percent and 17.28 percent, respectively, which compares with prior year
returns of 1.58 percent and 16.41 percent.
Assets (Unaudited - March 31,
$ in thousands) 2004 2003 $ change % change
Cash on hand and in
banks $53,213 $71,092 $(17,879) -25%
Investment securities
and interest bearing
deposits 1,184,959 843,408 341,551 40%
Loans:
Real estate 316,227 323,311 (7,084) -2%
Commercial 873,743 704,751 168,992 24%
Consumer 300,743 284,804 15,939 6%
Total loans 1,490,713 1,312,866 177,847 14%
Allowance for
loan losses (24,569) (21,627) (2,942) 14%
Total loans net
of allowance
for loan losses 1,466,144 1,291,239 174,905 14%
Other assets 124,725 116,767 7,958 7%
Total Assets $2,829,041 $2,322,506 $506,535 22%
At March 31, 2004 total assets were $2.829 billion which is $507 million
greater than the March 31, 2003 assets of $2.323 billion, an increase of
22 percent. In addition to the internal growth, the third quarter 2003 Pend
Oreille Bank (POB) acquisition added $66 million to the asset base.
Total loans have increased $178 million from March 31, 2003, of which
$50 million was from the POB acquisition. Commercial loans have increased
$169 million, or 24 percent, and continue to be the focus of our lending.
Real estate loan volume was at record levels through much of 2003, with
$805 million originated for the year, up from $588 million in 2002. The
majority of the real estate loan production was sold with loans held in the
loan portfolio increasing by only $14 million. Loans held for sale declined
$21 million from the March 31, 2003 total resulting in a net reduction of
$7 million in real estate loan balances at March 31, 2004. Consumer loans
have increased $16 million resulting from increases in home equity loans.
Home-equity loans continue to be the primary source of our consumer loan
originations and have increased approximately $28 million from a year ago.
"Loan growth has been a top priority for us this past year," said Blodnick.
"We continue to operate in good markets that have demonstrated solid and
consistent growth. This growth has created opportunities for us to increase
our loan portfolio. Our banks have done a good job of taking advantage of
these strong markets."
Investment securities, including interest bearing deposits in other
financial institutions, have increased $342 million from March 31, 2003.
Additional investments were made to utilize funding liquidity that exceeded
loan growth opportunities, and to capture the value of the spread between
short term funding rates and the rate on two-to-five year maturity assets.
Liabilities (Unaudited - March 31,
$ in thousands) 2004 2003 $ change % change
Non-interest bearing
deposits $366,277 $307,659 $58,618 19%
Interest-bearing
deposits 1,225,169 1,168,443 56,726 5%
Advances from
Federal Home Loan
Bank 801,679 500,425 301,254 60%
Securities sold
under agreements to
repurchase and
other borrowed funds 68,575 61,875 6,700 11%
Other liabilities 34,440 29,326 5,114 17%
Subordinated debentures 80,000 35,000 45,000 129%
Total liabilities $2,576,140 $2,102,728 $473,412 23%
Total deposits have increased $115 million from the March 31, 2003
balances of which $59 million came with the POB acquisition. There was an
increase of $59 million, or 19 percent, in non-interest bearing deposits.
This growth in low cost stable funding gives us increased flexibility in
managing our asset mix. Interest-bearing deposits are up $57 million, or
5 percent, of which $49 million was added by the POB acquisition. Federal
Home Loan Bank advances have also increased $301 million as we continue to
take advantage of the flexibility of that funding source in this current
period of low interest rates. On March 24, 2004 subordinated debentures in
the form of trust preferred securities of $45 million, with an interest rate
of 5.79 percent, were issued by the Company. The proceeds will be used for
general corporate purposes.
Stockholders' equity
(Unaudited - $ in thousands
except per share data) March 31,
2004 2003 $ change % change
Common equity $240,730 $210,979 $29,751 14%
Net unrealized gain
on securities 12,171 8,799 3,372 38%
Total stockholders'
equity $252,901 $219,778 $33,123 15%
Stockholders' equity to
total assets 8.94% 9.46%
Tangible equity to
total assets 7.55% 7.89%
Book value per
common share $10.34 $9.14 $1.20 13%
Tangible book value
per common share $8.60 $7.49 $1.11 15%
Market price per share
at end of quarter $25.80 $19.46 $6.34 33%
Total equity and book value per share amounts have increased substantially
from the prior year, primarily the result of earnings retention, and stock
options exercised. Net unrealized gains on securities increased $3.4 million
from a year ago primarily the result of intermediate term interest rate
changes.
Operating Results for Three Months Ended March 31, 2004 Compared to March
31, 2003
Operating results for the three months ended March 31, 2004 include
amounts related to the operation of the three branches from the POB
acquisition as of July 15, 2003.
Revenue summary
(Unaudited -
$ in thousands) Three months ended March 31,
2004 2003 $ change % change
Net interest income $26,389 $21,832 $4,557 21%
Fees and other revenue:
Service charges, loan
fees, and other fees 5,092 4,619 473 10%
Gain on sale of loans 1,771 2,271 (500) -22%
Gain on sale of
investments, net of
impairment charge -- (437) 437 -100%
Other income 548 560 (12) -2%
Total non-interest
income 7,411 7,013 398 6%
Total revenue $33,800 $28,845 $4,955 17%
Tax equivalent net
interest margin 4.29% 4.35%
Net Interest Income
Net interest income for the quarter increased $4.557 million, or
21 percent, over the same period in 2003. Total interest income was
$3.403 million, or 11 percent higher than the same quarter in 2003, while
total interest expense was $1.154 million or 11 percent lower. The decrease
in interest expense is partly attributed to the increase in non-interest
bearing deposits which reduced the need to borrow funds. The net interest
margin as a percentage of earning assets, on a tax equivalent basis, decreased
from 4.35 percent for the 2003 quarter to 4.29 percent for the first quarter
of 2004. The net interest margin increased from the 4.17 percent for the
fourth quarter of 2003 and was higher than any of the last three quarters of
2003. Premium amortization on mortgage related investments for the current
quarter was $2.553 million, down from the $3.884 million during the fourth
quarter of 2003, and approximately the same level as last year's quarter.
Mortgage security prepayments have slowed resulting in less amortization
expense allowing our net interest margin to stabilize. We continue to deploy
a strategy of investing in short term securities that carry lower current
yields. We believe it is inappropriate in this rate environment to extend
maturities in order to achieve higher yields.
Non-interest Income
Fee income increased 10 percent over the same period last year, driven
primarily by an increased number of loan and deposit accounts. Gain on sale
of loans decreased $500 thousand from the first quarter of last year and
$163 thousand from the fourth quarter of 2003, reflecting the reduced mortgage
loan refinancing activity. Other income, which includes a variety of
activities, was $12 thousand lower than the prior year's quarter. In the
first quarter of 2003 a valuation impairment charge of $454 thousand, due to
rapid prepayment of mortgage-backed securities, was netted against a
$17 thousand gain on sale of investments and recorded as a net loss on sale of
investments. There were no realized gains or losses on investments in the
first quarter of 2004.
Non-interest expense summary
(Unaudited - $ in thousands) Three months ended March 31,
2004 2003 $ change % change
Compensation and employee
benefits $9,806 $7,979 $1,827 23%
Occupancy and equipment
expense 2,631 2,435 196 8%
Outsourced data processing 413 562 (149) -27%
Core deposit intangibles
amortization 294 338 (44) -13%
Other expenses 4,282 3,569 713 20%
Total non-interest
expense $17,426 $14,883 $2,543 17%
Non-interest Expense
Non-interest expense increased by $2.543 million, or 17 percent, from the
same quarter of 2003. Current year includes expenses of the three branches
from the POB acquisition, two additional branches in Boise, Idaho, and a new
branch in downtown Bozeman, one of the fastest growing cities in Montana.
Compensation and benefit expense increased $1.827 million, or 23 percent from
the first quarter of 2003 with the additional bank branches, and normal
compensation increases for job performance, accounting for the majority of the
increase. Outsourced data processing expense decreased by $149 thousand, the
result of bringing the core processing for all subsidiaries onto our in-house
data system. Other expenses increased $713 thousand, or 20 percent, primarily
from start up expenses on implementing the High Performance Checking program
at the four banks not previously on the program, additional advertising
expense, and costs associated with the new branch offices. The efficiency
ratio (non-interest expense/net interest income + non-interest income) was
52 percent for the 2004 quarter the same as the 2003 quarter.
Credit quality information March 31, December 31, March 31,
(Unaudited - $ in thousands) 2004 2003 2003
Allowance for loan losses $24,569 $23,990 $21,627
Non-performing assets 11,641 13,068 10,026
Allowance as a percentage of
non performing assets 211% 184% 216%
Non-performing assets as a
percentage of total assets 0.42% 0.48% 0.43%
Allowance as a percentage
of total loans 1.65% 1.65% 1.65%
Net charge-offs as a
percentage of loans 0.017% 0.118% 0.012%
Allowance for Loan Loss and Non-Performing Assets
Non-performing assets as a percentage of total assets at March 31, 2004
were at .42 percent, a decrease from .43 percent at March 31, 2003 and from
48 percent at December 31, 2003. This compares to the Peer Group average of
62 percent at December 31, 2003, the most recent information available. The
allowance for loan losses was 211 percent of non-performing assets at March
31, 2004, compared to 216 percent a year ago. The allowance has increased
$2.942 million, or 14 percent, from a year ago to $24.569 million, remaining
at 1.65 percent of total loans outstanding. The first quarter provision for
loan losses was $830 thousand, a decrease of $11 thousand from the same
quarter in 2003.
Cash dividend
On March 10, 2004 the board of directors declared a cash dividend of
$.17 payable April 22, 2004 to shareholders of record on April 13, 2004. This
was a $.04 increase from the same quarter of the prior year's dividend of
$.13 in 2003, or a 31 percent increase.
Stock dividend
At today's meeting of the board of directors a five-for-four stock split
payable May 20, 2004 to owners of record on May 11, 2004 was authorized.
Fractional shares will be paid by the Company in cash. The stock split
increases the number of shares outstanding as of March 31, 2004, by 25 percent
or 4,890,141 shares, resulting in total shares outstanding of 24,450,706.
Branch purchase agreement
On April 1, 2004 the Company Subsidiary Mountain West Bank announced an
agreement to acquire the Ione, Washington branch of American West Bank. This
branch is in the vicinity of the Mountain West branch in Newport, Washington
which was acquired in 2003.
Headquartered in Kalispell, Montana, Glacier Bancorp, Inc. conducts
business from Glacier Bank of Kalispell, First Security Bank of Missoula,
Glacier Bank of Whitefish, Valley Bank of Helena, Big Sky Western Bank of
Bozeman, Western Security Bank of Billings, all located in Montana, and
Mountain West Bank located in Idaho with two branches in Utah and one in
Washington.
Visit our website at www.glacierbancorp.com
GLACIER BANCORP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Unaudited - $ in thousands except
per share data) March 31, March 31,
2004 2003
Assets:
Cash on hand and in banks $53,213 71,092
Interest bearing cash deposits 27,432 15,536
Cash and cash equivalents 80,645 86,628
Investment securities, available-for-sale 1,109,585 783,897
Federal Home Loan Bank of Seattle stock,
at cost 42,113 38,922
Federal Reserve Bank stock, at cost 5,829 5,053
Net loans receivable 1,449,535 1,253,730
Loans held for sale 16,609 37,509
Premises and equipment, net 52,936 48,436
Real estate and other assets owned 516 1,077
Accrued interest receivable 14,187 12,403
Core deposit intangible, net 5,571 6,484
Goodwill, net 36,951 33,189
Other assets 14,564 15,178
$2,829,041 2,322,506
Liabilities and stockholders' equity:
Non-interest bearing deposits $366,277 307,659
Interest bearing deposits 1,225,169 1,168,443
Advances from Federal Home Loan Bank
of Seattle 801,679 500,425
Securities sold under agreements to
repurchase 63,453 59,518
Other borrowed funds 5,122 2,357
Accrued interest payable 5,080 5,425
Current income taxes 5,661 3,818
Deferred taxes 10,983 7,839
Subordinated debentures 80,000 35,000
Other liabilities 12,716 12,244
Total liabilities 2,576,140 2,102,728
Preferred shares, 1,000,000 shares
authorized.
None outstanding -- --
Common stock, $.01 par value per share.
50,000,000 shares authorized 245 241
Paid-in capital 225,597 220,078
Retained earnings (deficit) - substantially
restricted 14,888 (9,340)
Accumulated other comprehensive income 12,171 8,799
Total stockholders' equity 252,901 219,778
$2,829,041 2,322,506
Number of shares outstanding 24,450,706 24,056,473
Book value of equity per share 10.34 9.14
Tangible book value per share 8.60 7.49
GLACIER BANCORP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited - $ in thousands
except per share data)
Three months ended March 31,
2004 2003
Interest income:
Real estate loans $5,281 6,252
Commercial loans 13,223 11,617
Consumer and other loans 4,836 5,102
Investment securities and other 12,125 9,091
Total interest income 35,465 32,062
Interest expense:
Deposits 3,483 4,947
FHLB Advances 4,445 4,212
Securities sold under agreements
to repurchase 157 158
Subordinated debentures 962 904
Other borrowed funds 29 9
Total interest expense 9,076 10,230
Net interest income 26,389 21,832
Provision for loan losses 830 841
Net Interest income after provision
for loan losses 25,559 20,991
Non-interest income:
Service charges and other fees 4,073 3,589
Miscellaneous loan fees and charges 1,019 1,030
Gain on sale of loans 1,771 2,271
Gain on sale of investments, net -- (437)
Other income 548 560
Total fees and other income 7,411 7,013
Non-interest expense:
Compensation, employee benefits and
related expenses 9,806 7,979
Occupancy and equipment expense 2,631 2,435
Outsourced data processing expense 413 562
Core deposit intangibles amortization 294 338
Other expenses 4,282 3,569
Total non-interest expense 17,426 14,883
Earnings before income taxes 15,544 13,121
Federal and state income tax expense 4,934 4,273
Net earnings $10,610 8,848
Basic earnings per share 0.44 0.37
Diluted earnings per share 0.43 0.36
Dividends declared per share 0.17 0.13
Return on average assets (annualized) 1.55% 1.58%
Return on average equity (annualized) 17.28% 16.41%
Return on tangible average equity
(annualized) 20.89% 20.08%
Average outstanding shares - basic 24,346,473 23,943,456
Average outstanding shares - diluted 24,768,669 24,272,608
SOURCE Glacier Bancorp, Inc.
-0- 04/28/2004
/CONTACT: Michael J. Blodnick, +1-406-751-4701, or James H. Strosahl,
+1-406-751-4702, both of Glacier Bancorp, Inc./
/Web site: http://www.glacierbancorp.com/
(GBCI)
CO: Glacier Bancorp, Inc.
ST: Montana, Washington
IN: FIN
SU: ERN STS DIV