Exhibit 99.1
Glacier Bancorp, Inc. Earnings for Quarter and Nine Months Ended
September 30, 2004
HIGHLIGHTS:
* Total assets exceed a record $3 billion.
* Net earnings for quarter a record $11.680 million, up 20 percent from
last year's quarter.
* Net earnings for nine months $33.053 million, up $4.576 million, or
16 percent from last year.
* Diluted quarterly earnings per share of $.47, up 21 percent from last
year's quarter.
* Diluted earnings per share for nine months of $1.33, up 14 percent
from last year.
* Loans outstanding increased $231 million, or 16 percent, since
December 31, 2003.
* Non-interest bearing deposits increased $70 million, or 19 percent,
since December 31, 2003.
* Cash dividend of $.17 declared, resulting in year-to-date dividends of
$.51, which is an increase of $.07, or 16 percent over the prior
year-to-date.
KALISPELL, Mont., Oct. 21 /PRNewswire-FirstCall/ --
Earnings Summary
(Unaudited - $ in thousands, Three months ended Nine months ended
except per share data) September 30, September 30,
2004 2003 2004 2003
Net earnings $11,680 $9,697 $33,053 $28,477
Diluted earnings per share $0.47 $0.39 $1.33 $1.17
Return on average
assets (annualized) 1.57% 1.49% 1.54% 1.58%
Return on average
equity (annualized) 18.12% 17.10% 17.74% 17.00%
Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net quarterly earnings of
$11.680 million, an increase of $1.983 million, or 20 percent, over the $9.697
million for the third quarter of 2003. Diluted earnings per share for the
quarter of $.47, is an increase of 21 percent over the per share earnings of
$.39 for the same quarter of 2003. "We are very pleased with our performance
for the quarter and year-to-date, as all seven banks performed at a high
level. We are especially pleased with the excellent loan and low cost deposit
growth we continue to experience," said Mick Blodnick, President and Chief
Executive Officer. Return on average assets and return on average equity for
the quarter were 1.57 percent and 18.12 percent, respectively, which compares
with prior year returns of 1.49 percent and 17.10 percent.
Net earnings for the nine months ended September 30, 2004 were $33.053
million, which is an increase of $4.576 million, or 16 percent over the same
period of the prior year. Without the 2003 gain on sale of securities, net
year-to-date earnings increased $5.419 million, or 20 percent. Diluted
earnings per share of $1.33, is an increase of 14 percent over the $1.17
earned in the first nine months of 2003. The 2004 nine month return on
average assets and return on average equity were 1.54 percent and 17.74
percent, respectively, which compares with the prior year nine month returns
of 1.58 percent and 17.00 percent.
Assets $ change $ change
(Unaudited from from
- $ in Sept. 30, Dec. 31, Sept. 30, Dec. 31, Sept. 30,
thousands) 2004 2003 2003 2003 2003
Cash on hand
and in banks $69,625 77,093 67,538 (7,468) 2,087
Investments,
interest bearing
deposits, FHLB
stock, and
FRB stock 1,145,667 1,106,001 1,046,446 39,666 99,221
Loans:
Real estate 373,662 317,774 345,091 55,888 28,571
Commercial 973,869 841,306 829,513 132,563 144,356
Consumer 338,158 295,275 292,516 42,883 45,642
Total loans 1,685,689 1,454,355 1,467,120 231,334 218,569
Allowance for
loan losses (26,075) (23,990) (23,920) (2,085) (2,155)
Total loans
net of
allowance
for losses 1,659,614 1,430,365 1,443,200 229,249 216,414
Other assets 127,793 126,174 125,890 1,619 1,903
Total Assets $3,002,699 2,739,633 2,683,074 263,066 319,625
At September 30, 2004 total assets were $3.003 billion which is $320
million greater than the September 30, 2003 assets of $2.683 billion, an
increase of 12 percent, and $263 million greater than the December 31, 2003
assets of $2.740 billion, a 10 percent increase.
Total loans have increased $219 million from September 30, 2003 and $231
million from December 31, 2003, an increase of 16 percent. Since year end
2003, commercial loans have increased $133 million, or 16 percent, and real
estate loans gained $56 million, or 18 percent. Consumer loans have increased
$43 million, or 15 percent, primarily from increases in home equity loans
which continue to be the primary source of our consumer loan originations.
Our banks continue to generate impressive loan volume. For the past two
quarters our loan growth has far exceeded our anticipated growth.
Investment securities, including interest bearing deposits in other
financial institutions, have increased $99 million from September 30, 2003,
and are $40 million more than at December 31, 2003. Additional investments
were made to utilize excess funding liquidity, and to capture the value of the
spread between short term funding rates and the rates on two-to-five year
maturity assets.
Liabilities $ change $ change
(Unaudited - from from
$ in Sept. 30, Dec. 31, Sept. 30, Dec. 31, Sept. 30,
thousands) 2004 2003 2003 2003 2003
Non-interest
bearing
deposits $438,578 369,052 392,746 69,526 45,832
Interest
bearing
deposits 1,249,543 1,228,573 1,225,653 20,970 23,890
Advances
from Federal
Home Loan
Bank 854,056 777,294 714,837 76,762 139,219
Securities
sold under
agreements
to repurchase
and other
borrowed
funds 82,686 64,986 58,787 17,700 23,899
Other
liabilities 34,858 26,889 27,946 7,969 6,912
Subordinated
debentures 80,000 35,000 35,000 45,000 45,000
Total
liabilities $2,739,721 2,501,794 2,454,969 237,927 284,752
Non-interest bearing deposits have increased $70 million, or 19 percent,
since December 31, 2003 and are $46 million, or 12 percent, greater than the
September 30, 2003 balance. This continues to be a primary focus of our banks
and the programs we have initiated this past year continue to gain momentum.
Total deposits have increased $70 million from the September 30, 2003 balances
and $90 million from December 31, 2003. This growth in deposits, a low cost
stable funding source, gives us increased flexibility in managing our asset
mix. Federal Home Loan Bank advances have also increased, $77 million from
December 31, 2003, and $139 million from September 30, 2003, as we continue to
take advantage of the flexibility of that funding source in this current
period of low interest rates. Repurchase agreements and other borrowed funds
also have increased from the prior year and from year end 2003 as we continue
to use these cost effective sources of funding. 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. The proceeds
were used for general corporate purposes.
Stockholders' equity
(Unaudited - $ change $ change
$ in thousands from from
except per Sept. 30, Dec. 31, Sept. 30, Dec. 31, Sept. 30,
share data) 2004 2003 2003 2003 2003
Common equity $254,897 231,223 224,149 23,674 30,748
Net unrealized
gain on
securities 8,081 6,616 3,956 1,465 4,125
Total
stockholders'
equity $262,978 237,839 228,105 25,139 34,873
Stockholders'
equity to
total assets 8.76% 8.68% 8.50%
Book value
per common share $10.73 9.83 9.44 0.90 1.29
Market price
per share at
end of quarter $29.16 25.98 21.94 3.18 7.22
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 available for sale of
$8 million at September 30, 2004 is greater than the $7 million at year end
2003 and the $4 million at September 30, 2003, and is primarily a function of
interest rate changes.
Operating Results for Three Months Ended September 30, 2004 Compared to
September 30, 2003
Operating results include amounts related to the operation of the three
branches acquired with the Pend Oreille Bank as of July 15, 2003 and the Ione,
Washington branch as of June 4, 2004.
Revenue summary
(Unaudited -
$ in thousands)
Three months ended September 30,
2004 2003 $ change % change
Net interest income $27,385 $23,664 $3,721 16%
Non-interest income
Service charges, loan
fees, and other fees 6,437 5,172 1,265 24%
Gain on sale of loans 2,211 3,258 (1,047) -32%
Gain on sale of
investments, net of
impairment charge -- 5 (5) -100%
Other income 489 478 11 2%
Total non-interest
income 9,137 8,913 224 3%
$36,522 $32,577 $3,945 12%
Tax equivalent
net interest margin 4.11% 4.12%
Net Interest Income
Net interest income for the quarter increased $3.721 million, or 16
percent, over the same period in 2003. Total interest income increased $4.537
million, or 14 percent, while total interest expense was $816 thousand higher.
"Premium amortization on our investments was reduced significantly from the
second quarter due to a substantial reduction in the level of mortgage
prepayments which resulted in higher returns on our investments," said
Blodnick. The investment portfolio generated approximately 64 percent of the
increase in interest income with the remainder coming from the increase in
loans outstanding. The increase in interest expense is primarily attributed
to the increase in non-interest bearing deposits and a reduction in rates on
maturing fixed term interest bearing deposits. The net interest margin as a
percentage of earning assets, on a tax equivalent basis, was 4.11 percent
which was near the 4.12 percent result for the third quarter of 2003. The
margin for the third quarter increased from the 4.04 percent experienced for
the second quarter of 2004. Premium amortization on mortgage related
investments for the third quarter was $2.722 million, a decrease of $745
thousand from the second quarter and a decrease of $1.254 million from the
third quarter of last year. "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," said Blodnick.
Non-interest Income
Fee income increased $1.265 million, or 24 percent, over the same period
last year, driven primarily by an increased number of loan and deposit
accounts and additional customer services offered. Gain on sale of loans
decreased $1.047 million from the third quarter of last year, because of
greatly reduced refinance activity, but increased $185 thousand from this
years' second quarter which was $255 thousand higher than the first quarter.
Loan origination activity for housing purchases remains quite strong in our
markets, with $176 million in residential loans originated in the third
quarter and $488 million year to date.
Non-interest expense summary
(Unaudited - $ in thousands) Three months ended September 30,
2004 2003 $ change % change
Compensation and
employee benefits $10,067 $9,448 $619 7%
Occupancy and
equipment expense 2,662 2,536 126 5%
Outsourced data
processing 346 393 (47) -12%
Core deposit intangibles
amortization 265 308 (43) -14%
Other expenses 4,649 4,362 287 7%
Total non-interest
expense $17,989 $17,047 $942 6%
Non-interest Expense
Non-interest expense increased by $942 thousand, or 6 percent, from the
same quarter of 2003 including expenses from the Ione branch acquisition, two
additional branches in Boise, Idaho, and a new branch in downtown Bozeman,
Montana. Compensation and benefit expense increased $619 thousand, or 7
percent from the third quarter of 2003, with the additional bank branches,
normal compensation increases for job performance and increased cost for
benefits tied to Company performance, accounting for the majority of the
increase. Occupancy and equipment expense increased $126 thousand, or 5
percent, reflecting the cost of the additional locations. Outsourced data
processing expense decreased by $47 thousand. Other expenses increased $287
thousand, or 7 percent, primarily from additional marketing expenses, and
costs associated with new branch offices. The efficiency ratio (non-interest
expense/net interest income + non-interest income) was 49 percent for the 2004
quarter which is a significant improvement from the 52 percent for the 2003
quarter.
Credit quality information Sept. 30, Dec. 31, Sept. 30,
(Unaudited - $ in thousands) 2004 2003 2003
Allowance for loan losses $26,075 $23,990 $23,920
Non-performing assets 12,308 13,068 10,489
Allowance as a percentage
of non performing assets 212% 184% 228%
Non-performing assets
as a percentage of
total assets 0.41% 0.48% 0.39%
Allowance as a percentage
of total loans 1.55% 1.65% 1.63%
Net charge-offs as a
percentage of loans 0.054% 0.118% 0.075%
Allowance for Loan Loss and Non-Performing Assets
Non-performing assets as a percentage of total assets at September 30,
2004 were at .41 percent, a decrease from .48 percent at December 31, 2003 but
a slight increase from .39 percent at September 30, 2003 and .37 percent at
June 30, 2004. This compares favorably to the Federal Reserve Bank Peer Group
average of .59 percent at June 30, 2004, the most recent information
available. The allowance for loan losses was 212 percent of non-performing
assets at September 30, 2004, compared to 228 percent a year ago. The
allowance has increased $2.155 million, or 9 percent, from a year ago to
$26.075 million, which is 1.55 percent of September 30, 2004 total loans
outstanding, down slightly from the 1.63 percent a year ago. The third quarter
provision expense for loan losses was $1.200 million, a decrease of $21
thousand from the same quarter in 2003.
Operating Results for Nine Months Ended September 30, 2004 Compared to
September 30, 2003
Operating results include amounts related to the operation of the three
branches acquired with the Pend Oreille Bank as of July 15, 2003 and the Ione,
Washington branch as of June 4, 2004.
Revenue summary
(Unaudited - $ in thousands)
Nine months ended September 30,
2004 2003 $ change % change
Net interest income $79,553 $67,465 $12,088 18%
Non-interest income
Service charges,
loan fees, and
other fees 17,851 14,769 3,082 21%
Gain on sale of loans 6,008 8,740 (2,732) -31%
Gain on sale of
investments, net of
impairment charge -- 1,253 (1,253) -100%
Other income 1,537 1,477 60 4%
Total non-interest
income 25,396 26,239 (843) -3%
$104,949 $93,704 $11,245 12%
Tax equivalent net
interest margin 4.15% 4.21%
Net Interest Income
Net interest income for the first nine months increased $12.088 million,
or 18 percent, over the same period in 2003. Total interest income was
$11.768 million, or 12 percent higher than the same period in 2003, while
total interest expense was $320 thousand lower. The investment portfolio
generated approximately 76 percent of the increase in interest income.
Additional interest income from the large increase in loans outstanding was
partially offset by lower rates on the loan portfolio due to refinancing, and
re-pricing of existing loans. The decrease in interest expense is primarily
attributed to the increase in non-interest bearing deposits and a reduction in
rates on maturing fixed term interest bearing deposits and Federal Home Loan
Bank borrowings. The interest expense on the subordinated debentures issued
in March 2004 partially offset the above described reductions. The net
interest margin as a percentage of earning assets, on a tax equivalent basis,
was 4.15 percent which was a decrease from 4.21 percent for the same period in
2003.
Non-interest Income
Fee income increased $3.082 million, or 21 percent, over the same period
last year, driven primarily by an increased number of loan and deposit
accounts and the fee income associated with this growth in accounts. Gain on
sale of loans decreased $2.732 million, or 31 percent, from last year, because
of greatly reduced refinance activity. Loan origination activity for housing
purchases remains quite strong in our markets. In 2003 gains on sale of
investments, net of impairment charge, of $1.253 million were recorded and
zero gains were realized in 2004.
Non-interest expense summary
(Unaudited - $ in thousands)
Nine months ended September 30,
2004 2003 $ change % change
Compensation and
employee benefits $29,724 $26,477 $3,247 12%
Occupancy and equipment
expense 8,026 7,266 760 10%
Outsourced data processing 1,127 1,221 (94) -8%
Core deposit intangibles
amortization 810 937 (127) -14%
Other expenses 13,736 12,354 1,382 11%
Total non-interest
expense $53,423 $48,255 $5,168 11%
Non-interest Expense
Non-interest expense increased by $5.168 million, or 11 percent, from 2003
including expenses from the acquisitions, 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 $3.247 million, or 12
percent, with the additional bank branches, normal compensation increases for
job performance and increased cost for benefits tied to Company performance,
accounting for the majority of the increase. Occupancy and equipment expense
increased $760 thousand, or 10 percent, reflecting the cost of the additional
locations. Outsourced data processing expense decreased by $94 thousand, the
result of bringing all core processing onto our in-house data systems, offset
somewhat by increased item capture expenses for Mountain West Bank resulting
from increased volumes. Other expenses increased $1.382 million, or 11
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 new branch offices and the
acquisitions. The efficiency ratio (non-interest expense/net interest income
+ non-interest income) was 51 percent, improving slightly from the 52 percent
in 2003, excluding the gain on sale of securities.
Allowance for Loan Loss and Non-Performing Assets
The provision expense for loan losses was $2.995 million, which is a
decrease of $118 thousand from the prior year's provision. Net charge offs as
a percentage of loans outstanding were .054 percent year-to-date, or .072
percent annualized, for 2004 which is down from .118 percent for the full year
in 2003.
Cash dividend
On September 29, 2004, the board of directors declared a cash dividend of
$.17 payable October 21, 2004 to shareholders of record on October 12, 2004.
This was a $.01 increase from the same quarter's dividend in 2003, a 6 percent
increase, and is a $.07 increase in dividends declared for the year, a 16
percent increase.
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 two 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) September 30, December 31, September 30,
2004 2003 2003
Assets:
Cash on hand and in banks $69,625 77,093 67,538
Interest bearing cash deposits 9,001 9,047 27,517
Cash and cash equivalents 78,626 86,140 95,055
Investment securities,
available-for-sale 1,086,862 1,050,311 973,098
Net loans receivable:
Real estate loans 373,662 317,774 345,091
Commercial Loans 973,869 841,306 829,513
Consumer and other loans 338,158 295,275 292,516
Allowance for losses (26,075) (23,990) (23,920)
Total Loans, net 1,659,614 1,430,365 1,443,200
Premises and equipment, net 54,244 53,251 53,025
Real estate and other assets
owned, net 493 587 577
Federal Home Loan Bank of
Seattle stock, at cost 44,004 41,235 40,581
Federal Reserve Bank stock, at
cost 5,800 5,408 5,250
Accrued interest receivable 15,494 14,941 14,204
Core deposit intangible, net 5,204 5,865 6,171
Goodwill, net 37,376 36,951 36,909
Other assets 14,982 14,579 15,004
$3,002,699 2,739,633 2,683,074
Liabilities and stockholders'
equity:
Non-interest bearing deposits $438,578 369,052 392,746
Interest bearing deposits 1,249,543 1,228,573 1,225,653
Advances from Federal Home
Loan Bank of Seattle 854,056 777,294 714,837
Securities sold under
agreements to repurchase 73,074 56,968 53,047
Other borrowed funds 9,612 8,018 5,740
Accrued interest payable 5,439 4,353 4,779
Current income taxes 4,175 826 1,731
Deferred tax liability 8,375 7,369 4,916
Subordinated debentures 80,000 35,000 35,000
Other liabilities 16,869 14,341 16,520
Total liabilities 2,739,721 2,501,794 2,454,969
Preferred shares, 1,000,000
shares authorized.
None outstanding -- -- --
Common stock, $.01 par value
per share. 50,000,000 shares
authorized 245 242 241
Paid-in capital 225,647 222,588 221,168
Retained earnings -
substantially restricted 29,005 8,393 2,740
Accumulated other
comprehensive income 8,081 6,616 3,956
Total stockholders' equity 262,978 237,839 228,105
$3,002,699 2,739,633 2,683,074
Number of shares outstanding 24,507,345 24,203,338 24,167,481
Book value of equity per
share 10.73 9.83 9.44
GLACIER BANCORP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited - $ in
thousands except Three months ended Nine months ended
per share data) September 30, September 30,
2004 2003 2004 2003
Interest income:
Real estate loans $5,865 6,016 16,554 18,117
Commercial loans 14,744 13,137 41,682 37,116
Consumer and other
loans 5,166 4,999 14,914 15,131
Investment securities
and other 11,865 8,951 35,396 26,414
Total interest
income 37,640 33,103 108,546 96,778
Interest expense:
Deposits 3,510 4,102 10,406 13,480
FHLB Advances 4,787 4,252 13,723 12,551
Securities sold under
agreements to
repurchase 231 157 565 490
Subordinated
debentures 1,547 903 4,064 2,711
Other borrowed funds 180 25 235 81
Total interest
expense 10,255 9,439 28,993 29,313
Net interest income 27,385 23,664 79,553 67,465
Provision for
loan losses 1,200 1,221 2,995 3,113
Net Interest income
after provision for
loan losses 26,185 22,443 76,558 64,352
Non-interest income:
Service charges
and other fees 5,331 4,088 14,386 11,523
Miscellaneous loan
fees and charges 1,106 1,084 3,465 3,246
Gain on sale of loans 2,211 3,258 6,008 8,740
Gain on sale of
investments, net of
impairment charge -- 5 -- 1,253
Other income 489 478 1,537 1,477
Total fees and
other income 9,137 8,913 25,396 26,239
Non-interest expense:
Compensation,
employee benefits
and related
expenses 10,067 9,448 29,724 26,477
Occupancy and
equipment expense 2,662 2,536 8,026 7,266
Outsourced data
processing expense 346 393 1,127 1,221
Core deposit
intangibles
amortization 265 308 810 937
Other expenses 4,649 4,362 13,736 12,354
Total non-interest
expense 17,989 17,047 53,423 48,255
Earnings before
income taxes 17,333 14,309 48,531 42,336
Federal and state
income tax expense 5,653 4,612 15,478 13,859
Net earnings $11,680 9,697 33,053 28,477
Basic earnings per
share 0.48 0.40 1.35 1.18
Diluted earnings
per share 0.47 0.39 1.33 1.17
Dividends declared
per share 0.17 0.16 0.51 0.44
Return on average
assets
(annualized) 1.57% 1.49% 1.54% 1.58%
Return on average
equity
(annualized) 18.12% 17.10% 17.74% 17.00%
Average outstanding
shares - basic 24,480,327 24,138,173 24,428,437 24,056,071
Average outstanding
shares - diluted 24,931,616 24,584,529 24,858,965 24,448,030
SOURCE Glacier Bancorp, Inc.
-0- 10/21/2004
/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
IN: FIN
SU: ERN DIV