KALISPELL, Mont., Jan. 26, 2012 /PRNewswire/ --
HIGHLIGHTS:
-- Net earnings for the quarter increased 50 percent to $14.3 million and diluted earnings per share increased 54 percent to $0.20 from the prior year fourth quarter. -- Excluding a goodwill impairment charge (net of tax) of $32.6 million, net operating earnings for 2011 was $50.1 million, an increase of $7.8 million, or 18 percent from the prior year. -- Non-performing assets of $213 million decreased $35.9 million, or 14 percent, from the prior quarter. -- Net charged-off loans of $9.3 million for the quarter decreased $9.6 million, or 51 percent, from the prior quarter net charged-off loans. -- Non-interest bearing deposits surpassed $1 billion for the first time. -- Dividend declared of $0.13 per share during the quarter. -- Announced the internal restructuring of the bank subsidiaries to bank divisions.
Results Summary
Three Months ended Year ended ------------------ ---------- (Unaudited -Dollars in December December December December thousands, 31 31 31 31 except per share data) 2011 2010 2011 2010 ---------------------- ---- ---- ---- ---- Net earnings (GAAP) $14,348 9,593 17,471 42,330 Add goodwill impairment charge, net of tax - - 32,613 - --- --- ------ --- Operating earnings (non- GAAP) $14,348 9,593 50,084 42,330 ======= ===== ====== ====== Diluted earnings per share (GAAP) $0.20 0.13 0.24 0.61 Add goodwill impairment charge, net of tax - - 0.46 - --- --- ---- --- Diluted earnings per share (non-GAAP) $0.20 0.13 0.70 0.61 ===== ==== ==== ==== Return on average assets (annualized) (GAAP) 0.80% 0.58% 0.25% 0.67% Add goodwill impairment charge, net of tax -0.01% - 0.47% - ----- --- ---- --- Return on average assets (annualized) (non-GAAP) 0.79% 0.58% 0.72% 0.67% ==== ==== ==== ==== Return on average equity (annualized) (GAAP) 6.69% 4.47% 2.04% 5.18% Add goodwill impairment charge, net of tax -0.24% - 3.74% - ----- --- ---- --- Return on average equity (annualized) (non-GAAP) 6.45% 4.47% 5.78% 5.18% ==== ==== ==== ====
Glacier Bancorp, Inc. (Nasdaq GS: GBCI) reported earnings for the current quarter of $14.3 million, an increase of $4.8 million, or 50 percent, compared to $9.6 million for the prior year fourth quarter. Diluted earnings per share for the current quarter was $0.20 per share, an increase of 54 percent from the prior year fourth quarter of $0.13 per share. "Although revenue growth is still challenging, we gained momentum in a number of fronts this past quarter." said Mick Blodnick, President and Chief Executive Officer. "Earnings continued to improve and credit costs decreased. However, those positions were partially offset by a steep increase in premium amortization which had a significant impact on our net interest income and consequently our net interest margin," Blodnick said.
Excluding the goodwill impairment charge, operating earnings for 2011 was $50.1 million versus $42.3 million for the prior year. Diluted operating earnings per share for 2011 was $0.70 per share, an increase of 15 percent from the prior year earnings per share of $0.61. Operating earnings is considered a non-GAAP financial measure and additional information regarding this measurement and reconciliation is provided herein. Including the goodwill impairment charge, net earnings was $17.5 million or $0.24 per share for the year ended December 31, 2011.
Non-GAAP Financial Measures
In addition to the results presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), this press release contains certain non-GAAP financial measures. The Company believes that providing these non-GAAP financial measures provides investors with information useful in understanding the Company's financial performance, performance trends, and financial position. While the Company uses these non-GAAP measures in its analysis of the Company's performance, this information should not be considered an alternative to measurements required by GAAP.
The preceding results summary table provides a reconciliation of certain GAAP financial measures to non-GAAP financial measures. The reconciling item between the GAAP and non-GAAP financial measures was the third quarter of 2011 goodwill impairment charge (net of tax) of $32.6 million.
-- The goodwill impairment charge was $40.2 million with a tax benefit of $7.6 million which resulted in a goodwill impairment charge (net of tax) of $32.6 million. The tax benefit applied only to the $19.4 million of goodwill associated with taxable acquisitions and was determined based on the Company's marginal income tax rate of 38.9 percent. -- The diluted earnings per share reconciling item was determined based on the goodwill impairment charge (net of tax) divided by the weighted average diluted shares of 71,915,073. -- The goodwill impairment charge (net of tax) was included in determining earnings for both the GAAP return on average assets and GAAP return on average equity. The average assets used in the GAAP return on average assets ratios were $7.128 billion and $6.923 billion for the three and twelve month periods, respectively. The average assets used in the non-GAAP return on average assets ratios were $7.161 billion and $6.931 billion for the three and twelve month periods, respectively. The average equity used in the GAAP return on average equity ratios were $850 million and $858 million for the three and twelve month periods, respectively. The average equity used in the non-GAAP return on average equity ratios were $883 million and $866 million for the three and twelve month periods, respectively.
Asset Summary
Assets $Change from $Change from December September December September December 31, 30, 31, 30, 31, (Unaudited - Dollars in thousands) 2011 2011 2010 2011 2010 ---------- ---- ---- ---- ---- ---- Cash on hand and in banks $104,674 98,151 71,465 6,523 33,209 Investment securities and interest bearing cash deposits 3,150,101 2,970,631 2,429,473 179,470 720,628 Loans receivable Residential real estate 516,807 518,786 632,877 (1,979) (116,070) Commercial 2,295,927 2,336,744 2,451,091 (40,817) (155,164) Consumer and other 653,401 668,052 665,321 (14,651) (11,920) ------- ------- ------- ------- ------- Loans receivable 3,466,135 3,523,582 3,749,289 (57,447) (283,154) Allowance for loan and lease losses (137,516) (138,093) (137,107) 577 (409) -------- -------- -------- --- ---- Loans receivable, net 3,328,619 3,385,489 3,612,182 (56,870) (283,563) --------- --------- --------- ------- -------- Other assets 604,512 588,418 646,167 16,094 (41,655) ------- ------- ------- ------ ------- Total assets $7,187,906 7,042,689 6,759,287 145,217 428,619 ========== ========= ========= ======= =======
Total assets at December 31, 2011 were $7.188 billion, which was $145 million, or 2 percent, greater than total assets of $7.043 billion at September 30, 2011, and $429 million, or 6 percent, greater than total assets of $6.759 billion at December 31, 2010.
Investment securities, including interest bearing deposits and federal funds sold, increased $179 million, or 6 percent, during the quarter and increased $721 million, or 30 percent, from December 31, 2010. During the year, the Company purchased investment securities to primarily offset the lack of loan growth and to maintain interest income. The investment securities purchased during the current quarter were predominately U.S. Agency Collateralized Mortgage Obligations ("CMO") with short weighted-average-lives. Investment securities represent 44 percent of total assets at December 31, 2011 versus 42 percent at September 30, 2011 and 36 percent at December 31, 2010.
At December 31, 2011, the loan portfolio was $3.466 billion, a decrease of $57.4 million, or 2 percent, during the quarter. Excluding net charge-offs of $9.3 million and loans transferred to other real estate owned of $14.8 million, loans decreased $33.3 million, or 1 percent, during the current quarter. During the year, the loan portfolio decreased $283 million, or 8 percent, from total loans of $3.749 billion at December 31, 2010. Excluding net charge-offs of $64.1 million and loans transferred to other real estate owned of $79.3 million, loans decreased $140 million, or 4 percent, from December 31, 2010. During the year, the largest decrease in dollars was in commercial loans which decreased $155 million, or 6 percent, from December 31, 2010. The largest percentage decrease was in real estate loans which decreased $116 million, or 18 percent, from December 31, 2010. The Company continues to reduce its exposure to land, lot and other construction loans which totaled $381 million as of December 31, 2011 and have decreased $168 million, or 31 percent, since the prior year end. The continued downturn in the economy and resulting lack of loan demand were the primary reasons for the decrease in the loan portfolio.
As a result of the third quarter 2011 goodwill impairment charge (net of tax) of $32.6 million, other assets decreased $41.7 million from December 31, 2010.
Credit Quality Summary
At or for At or for At or for the the Nine the Year ended Months ended Year ended (Unaudited -Dollars in December 31, September December 31, thousands) 2011 30, 2011 2010 ---------- ------------ ---------- ------------ Allowance for loan and lease losses Balance at beginning of period $137,107 137,107 142,927 Provision for loan losses 64,500 55,825 84,693 Charge- offs (69,366) (58,298) (93,950) Recoveries 5,275 3,459 3,437 Balance at end of period $137,516 138,093 137,107 ======== ======= ======= Other real estate owned $78,354 93,649 73,485 Accruing loans 90 days or more past due 1,413 4,002 4,531 Non- accrual loans 133,689 151,753 192,505 Total non- performing assets (1) $213,456 249,404 270,521 ======== ======= ======= Non- performing assets as a percentage of subsidiary assets 2.92% 3.49% 3.91% Allowance for loan and lease losses as a percentage of non- performing loans 102% 89% 70% Allowance for loan and lease losses as a percentage of total loans 3.97% 3.92% 3.66% Net charge- offs as a percentage of total loans 1.85% 1.56% 2.41% Accruing loans 30-89 days past due $49,086 21,130 45,497 ( 1) As of December 31, 2011, non-performing assets have not been reduced by U.S. government guarantees of $2.7 million.
At December 31, 2011, the allowance for loan and lease losses ("allowance") was $138 million and remained stable compared to the prior quarter end and the prior year end. The allowance was 3.97 percent of total loans outstanding at December 31, 2011, compared to 3.66 percent at December 31, 2010. The allowance was 102 percent of non-performing loans at December 31, 2011, an increase from 89 percent at the prior quarter end and an increase from 70 percent from the prior year end. There was a sizeable decrease in non-performing assets during the current quarter due to a decrease in other real estate owned of $15.3 million, or 16 percent, and a decrease in non-performing loans of $20.7 million, or 13 percent. The momentum of reducing non-performing assets continued from the third quarter into the fourth quarter with each bank subsidiary actively managing the disposition of non-performing assets. Throughout the year, the Company has maintained an adequate allowance for loan losses while working to reduce non-performing assets. The improvement in the credit quality ratios during the current quarter and the year are a product of this effort.
The Company's early stage delinquencies (accruing loans 30-89 days past due) of $49.1 million at December 31, 2011, increased from the prior quarter early stage delinquencies of $21.1 million and the prior year end early stage delinquencies of $45.5 million. The increase in early stage delinquencies from the prior quarter was reflective of a 31 day month with 25 percent of early stage delinquencies exactly 30 days past due.
The largest category of non-performing assets was land, lot and other construction which was $117 million, or 55 percent, of non-performing assets at December 31, 2011. Included in this category was $56.2 million of land development assets and $35.8 million in unimproved land at December 31, 2011. Although land, lot and other construction assets have historically put pressure on the Company's credit quality, the Company has diligently reduced this category of non-performing assets by $38.1 million, or 25 percent, since the prior year end. Other notable categories of non-performing assets at December 31, 2011 were commercial real estate of $28.9 million and 1-4 family of $33.6 million, both categories of which have decreased since prior year end.
Credit Quality Trends and Provision for Loan Losses
Accruing Non- Loans 30-89 Performing Days Past Provision ALLL Due Assets to as a as a Total for Loan Net Percent Percent of Subsidiary (Dollars in thousands) Losses Charge-Offs of Loans Loans Assets ----------- ------ ----------- -------- ----- ------ Q4 2011 $8,675 9,252 3.97% 1.42% 2.92% Q3 2011 17,175 18,877 3.92% 0.60% 3.49% Q2 2011 19,150 20,184 3.88% 1.14% 3.68% Q1 2011 19,500 15,778 3.86% 1.44% 3.78% Q4 2010 27,375 24,525 3.66% 1.21% 3.91% Q3 2010 19,162 26,570 3.47% 1.06% 4.03% Q2 2010 17,246 19,181 3.58% 0.92% 4.01% Q1 2010 20,910 20,237 3.58% 1.53% 4.19%
Another bright spot for the current quarter was the net charged-off loans which decreased to $9.3 million compared to $18.9 million for the prior quarter and $24.5 million for the fourth quarter of 2010. The current quarter provision for loan losses was $8.7 million, a decrease of $8.5 million from the prior quarter and a decrease of $18.7 million from the fourth quarter of 2010. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of additional provision for loan loss expense at each subsidiary bank. "The fourth quarter saw a continuation of some encouraging credit trends," Blodnick said. "Specifically, the progress we made reducing our non-performing assets this quarter and the reduction in credit costs were key areas of improvement. As we begin the new year, we expect to make additional headway reducing our problem assets ."
For additional information regarding credit quality and identification of the loan portfolio by regulatory classification, see the exhibits at the end of this press release.
Liability Summary
Liabilities $Change from $Change from December September December September December 31, 30, 31, 30, 31, (Unaudited - Dollars in thousands) 2011 2011 2010 2011 2010 ------------ ---- ---- ---- ---- ---- Non- interest bearing deposits $1,010,899 996,265 855,829 14,634 155,070 Interest bearing deposits 3,810,314 3,774,263 3,666,073 36,051 144,241 Federal funds purchased - 45,000 - (45,000) - Repurchase agreements 258,643 301,820 249,403 (43,177) 9,240 FHLB advances 1,069,046 889,053 965,141 179,993 103,905 Other borrowed funds 9,995 14,792 20,005 (4,797) (10,010) Subordinated debentures 125,275 125,239 125,132 36 143 Other liabilities 53,507 44,869 39,500 8,638 14,007 ------ ------ ------ Total liabilities $6,337,679 6,191,301 5,921,083 146,378 416,596 ========== ========= ========= ======= =======
At December 31, 2011, non-interest bearing deposits of $1.011 billion increased $14.6 million, or 1 percent, since September 30, 2011 and increased $155 million, or 18 percent, since December 31, 2010. The increase in non-interest bearing deposits during the year was driven by the continued growth in the number of personal and business customers, as well as existing customers retaining cash deposits for liquidity purposes due to the uncertainty in the current economic environment. Interest bearing deposits of $3.810 billion at December 31, 2011 included $170 million of reciprocal deposits (e.g., Certificate of Deposit Account Registry System deposits). Interest bearing deposits increased $36.1 million, or 1 percent, since September 30, 2011 and included a decrease of $38.7 million in wholesale deposits including reciprocal deposits. Interest bearing deposits increased $144 million, or 4 percent, from the prior year end and included an increase of $31.1 million in wholesale deposits, including reciprocal deposits. These deposit increases have been beneficial to the Company in funding the investment securities portfolio growth at low costs over the prior twelve months. Borrowings through repurchase agreements were $259 million at December 31, 2011, a decrease of $43.2 million, or 14 percent, from September 30, 2011 and an increase of $9.2 million, or 4 percent, from December 31, 2010.
To fund growth in the investment securities portfolio, the Company's level of borrowings has increased as needed to supplement deposit growth. Since the prior quarter end, Federal Home Loan Bank ("FHLB") advances have increased $180 million which was partially offset by the decrease in Federal funds purchased of $45.0 million. FHLB advances increased $104 million since December 31, 2010.
Stockholders' Equity Summary
Stockholders' Equity $Change from $Change from December September December September 31, 30, 31, 30, December 31, (Unaudited -Dollars in thousands, except per share data) 2011 2011 2010 2011 2010 ---------------------------- ---- ---- ---- ---- ---- Common equity $816,740 811,738 837,676 5,002 (20,936) Accumulated other comprehensive income 33,487 39,650 528 (6,163) 32,959 ------ ------ --- ------ ------ Total stockholders' equity 850,227 851,388 838,204 (1,161) 12,023 Goodwill and core deposit intangible, net (114,384) (114,941) (157,016) 557 42,632 -------- -------- -------- --- ------ Tangible stockholders' equity $735,843 736,447 681,188 (604) 54,655 ======== ======= ======= ==== ====== Stockholders' equity to total assets 11.83% 12.09% 12.40% Tangible stockholders' equity to total tangible assets 10.40% 10.63% 10.32% Book value per common share $11.82 11.84 11.66 (0.02) 0.16 Tangible book value per common share $10.23 10.24 9.47 (0.01) 0.76 Market price per share at end of period $12.03 9.37 15.11 2.66 (3.08)
Total stockholders' equity and book value per share increased $12.0 million and $0.16 per share from the prior year end. The increase came primarily from accumulated other comprehensive income representing net unrealized gains or losses (net of tax) on the investment securities portfolio which was largely offset by the third quarter 2011 goodwill impairment charge (net of tax) of $32.6 million. Tangible stockholders' equity increased $54.7 million, or $0.76 per share since December 31, 2010 resulting in tangible stockholders' equity to tangible assets of 10.40 percent and tangible book value per share of $10.23 as of December 31, 2011.
Cash Dividend
On December 28, 2011, the Company's Board of Directors declared a cash dividend of $0.13 per share, payable January 19, 2012 to shareholders of record on January 10, 2012. For 2011, cash dividends declared were $0.52 per share. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.
Operating Results for Three Months Ended December 31, 2011
Compared to September 30, 2011 and December 30, 2010
Revenue Summary
Three Months ended ------------------ December December 31, September 30, 31, (Unaudited - Dollars in thousands) 2011 2011 2010 ---------- ---- ---- ---- Net interest income Interest income $68,741 71,433 69,083 Interest expense 10,197 11,297 12,420 ------ ------ ------ Total net interest income 58,544 60,136 56,663 Non- interest income Service charges, loan fees, and other fees 12,134 12,536 12,178 Gain on sale of loans 7,026 5,121 9,842 Gain on sale of investments - 813 2,225 Other income 2,857 2,466 1,715 ----- ----- ----- Total non- interest income 22,017 20,936 25,960 ------ ------ ------ $80,561 81,072 82,623 ======= ====== ====== Net interest margin (tax- equivalent) 3.74% 3.92% 3.91% ==== ==== ==== % Change % Change $Change from $Change from from from September September 30, December 31, 30, December 31, (Unaudited - Dollars in thousands) 2011 2010 2011 2010 ---------- ---- ---- ---- ---- Net interest income Interest income $(2,692) $(342) -4% 0% Interest expense (1,100) (2,223) -10% -18% ------ ------ Total net interest income (1,592) 1,881 -3% 3% Non- interest income Service charges, loan fees, and other fees (402) (44) -3% 0% Gain on sale of loans 1,905 (2,816) 37% -29% Gain on sale of investments (813) (2,225) -100% -100% Other income 391 1,142 16% 67% --- ----- Total non- interest income 1,081 (3,943) 5% -15% ----- ------ $(511) $(2,062) -1% -2% ===== =======
Net Interest Income
The current quarter net interest income of $58.5 million decreased $1.6 million, or 3 percent, over the prior quarter and increased $1.9 million, or 3 percent, over the prior year fourth quarter. The current quarter interest income included $11.5 million of premium amortization (net of discount accretion) on CMOs, such amount an increase of $4.0 million over the prior quarter and an increase of $2.9 million over the prior year fourth quarter premium amortization. The decrease in interest expense of $1.1 million, or 10 percent, from the prior quarter and the decrease of $2.2 million, or 18 percent, in interest expense from the prior year fourth quarter was primarily driven by the decrease in interest rates on deposits as a result of the bank subsidiaries continued focus on reducing funding cost. The funding cost for the current quarter was 77 basis points compared to 87 basis points for the prior quarter and 103 basis points for the prior year fourth quarter.
The current quarter net interest margin as a percentage of earning assets, on a tax-equivalent basis, was 3.74 percent, a decrease of 18 basis points from the prior quarter net interest margin of 3.92 percent and a decrease of 17 basis points from the prior year fourth quarter net interest margin of 3.91. Such decreases were a result of the decrease in yields on earning assets, most of which was from lower yielding investment securities and the increase in premium amortization during the current quarter. The CMO premium amortization in the current quarter accounted for a 69 basis point reduction in the net interest margin compared to a 46 basis point reduction in the prior quarter and 56 basis point reduction in the net interest margin in the prior year fourth quarter. "The banks continue to do a great job of lowering their funding cost, but it was not enough to offset the contraction in asset yields and the increase in premium amortization," said Ron J. Copher, Chief Financial Officer. The current quarter net interest margin included a 2 basis points reduction from the reversal of interest on non-accrual loans.
Non-interest Income
Non-interest income for the current quarter totaled $22.0 million, an increase of $1.1 million over the prior quarter and a decrease of $3.9 million over the same quarter last year. Gain on sale of loans increased $1.9 million, or 37 percent, over the prior quarter and decreased $2.8 million, or 29 percent, over the same quarter last year. Such changes were the result of an increase in refinance activity during the fourth quarter of 2011, although at much lower levels than the refinance volume in the fourth quarter of 2010. There were no sales of investment securities during the current quarter which compared to an $813 thousand gain on sale of investment securities for the prior quarter and a $2.2 million gain in the prior year fourth quarter. Other income of $2.9 million for the current quarter was an increase of $391 thousand from the prior quarter and an increase of $1.1 million from the prior year fourth quarter. Included in other income was operating revenue from other real estate owned and gain on the sale of other real estate owned aggregating $822 thousand for the current quarter compared to $903 thousand for the prior quarter and $313 thousand for the prior year fourth quarter.
Non-interest Expense Summary
Three Months ended ------------------ December September 31, 30, December 31, (Unaudited -Dollars in thousands) 2011 2011 2010 ----------- ---- ---- ---- Compensation, employee benefits and related expense $21,311 21,607 22,485 Occupancy and equipment expense 5,890 6,027 6,291 Advertising and promotions 1,588 1,762 1,683 Outsourced data processing expense 849 740 852 Other real estate owned expense 12,896 7,198 2,847 Federal Deposit Insurance Corporation premiums 2,010 1,638 2,123 Core deposit intangibles amortization 557 599 758 Other expense 10,029 8,568 8,697 ------ ----- ----- Total non- interest expense before goodwill impairment charge 55,130 48,139 45,736 Goodwill impairment charge - 40,159 - Total non- interest expense $55,130 88,298 45,736 ======= ====== ====== % Change % Change $Change from $Change from from from September December September December 30, 31, 30, 31, (Unaudited -Dollars in thousands) 2011 2010 2011 2010 ----------- ---- ---- ---- ---- Compensation, employee benefits and related expense $(296) $(1,174) -1% -5% Occupancy and equipment expense (137) (401) -2% -6% Advertising and promotions (174) (95) -10% -6% Outsourced data processing expense 109 (3) 15% 0% Other real estate owned expense 5,698 10,049 79% 353% Federal Deposit Insurance Corporation premiums 372 (113) 23% -5% Core deposit intangibles amortization (42) (201) -7% -27% Other expense 1,461 1,332 17% 15% ----- ----- Total non- interest expense before goodwill impairment charge 6,991 9,394 15% 21% Goodwill impairment charge (40,159) - -100% n/m Total non- interest expense $(33,168) $9,394 -38% 21% ======== ======
Excluding the goodwill impairment charge, non-interest expense of $55.1 million for the current quarter increased by $7.0 million, or 15 percent, from the prior quarter and increased by $9.4 million, or 21 percent, from the prior year fourth quarter. The increases over the linked quarter and the prior year quarter were driven primarily by higher other real estate owned expense. Other real estate owned expense increased $5.7 million, or 79 percent, from the prior quarter and increased $10.0 million, or 353 percent, from the prior year fourth quarter. The current quarter other real estate owned expense of $12.9 million included $1.8 million of operating expense, $9.4 million of fair value write-downs, and $1.7 million of loss on sale of other real estate owned. Other real estate owned expense will fluctuate as the Company continues to work through non-performing loans and dispose of foreclosure properties.
Excluding other real estate owned expense, non-interest expense increased $1.3 million, or 3 percent, from prior quarter and decreased $655 thousand, or 2 percent, from the prior year fourth quarter. Compensation and employee benefits decreased by $296 thousand, or 1 percent, from the prior quarter and decreased $1.2 million, or 5 percent, from the prior year fourth quarter. Other expense increased $1.5 million, or 17 percent, from the prior quarter and increased $1.3 million, or 15 percent, from the same quarter last year as a result of changes in several categories.
Efficiency Ratio
The efficiency ratio for the current quarter was 50 percent compared to 51 percent for the prior year fourth quarter. The lower efficiency ratio was primarily the result of an increase in interest income from investment securities.
Operating Results for Years Ended December 31, 2011 Compared to December 31, 2010
Revenue Summary
Years ended December 31, ------------------------ (Unaudited - Dollars in thousands) 2011 2010 $Change % Change ------------ ---- ---- ------- -------- Net interest income Interest income $280,109 $288,402 $(8,293) -3% Interest expense 44,494 53,634 (9,140) -17% ------ ------ ------ Total net interest income 235,615 234,768 847 0% Non-interest income Service charges, loan fees, and other fees 48,113 47,946 167 0% Gain on sale of loans 21,132 27,233 (6,101) -22% Gain on sale of investments 346 4,822 (4,476) -93% Other income 8,608 7,545 1,063 14% ----- ----- ----- Total non- interest income 78,199 87,546 (9,347) -11% ------ ------ ------ $313,814 $322,314 $(8,500) -3% ======== ======== ======= Net interest margin (tax- equivalent) 3.89% 4.21% ==== ====
Net Interest Income
Net interest income for 2011 remained stable compared to 2010. During 2011, interest income decreased $8.3 million, or 3 percent, while interest expense decreased $9.1 million, or 17 percent from 2010. The decrease in interest income from the prior year resulted from the increase in premium amortization (as interest rates declined) coupled with the reduction in loan balances, the combination of which put further pressure on earning asset yields. Interest income also continues to reflect the Company's purchase of a significant amount of investment securities over the course of several quarters at lower yields than the loans they replaced. Interest income included $35.8 million in premium amortization (net of discount accretion) on CMOs which was an increase of $18.1 million from the prior year. This increase was the result of both the increased purchases of CMOs combined with the continued refinance activity. The decrease in interest expense in 2011 was primarily attributable to the rate decreases on interest bearing deposits. The funding cost for 2011 was 87 basis points compared to 116 basis points for 2010.
The net interest margin decreased 32 basis points from 4.21 percent for 2010 to 3.89 for 2011. The reduction was attributable to a lower yield and volume of loans coupled with an increase in lower yielding investment securities and higher CMO premium amortization. The premium amortization in 2011 accounted for a 56 basis point reduction in the net interest margin compared to a 30 basis point reduction in the net interest margin for the same period last year.
Non-interest Income
Non-interest income of $78.2 million for 2011 decreased $9.3 million, or 11 percent, over non-interest income of $87.5 million for 2010. Gain on sale of loans for 2011 decreased $6.1 million, or 22 percent, from 2010 due to a significant reduction in refinance activity. Excluding the prior year $2.0 million gain on the sale of merchant card servicing portfolio, other income for 2011 increased $3.1 million, or 56 percent, over 2010 of which $1.7 million was from debit card income and $1.3 million was from the combination of operating revenue from other real estate owned and gain on sale of other real estate owned.
Non-interest Expense Summary
Years ended December 31, ------------------------ (Unaudited -Dollars in thousands) 2011 2010 $Change % Change ------------------- ---- ---- ------- -------- Compensation, employee benefits and related expense $85,691 $87,728 $(2,037) -2% Occupancy and equipment expense 23,599 24,261 (662) -3% Advertising and promotions 6,469 6,831 (362) -5% Outsourced data processing expense 3,153 3,057 96 3% Other real estate owned expense 27,255 22,193 5,062 23% Federal Deposit Insurance Corporation premiums 8,169 9,121 (952) -10% Core deposit intangibles amortization 2,473 3,180 (707) -22% Other expense 35,156 31,577 3,579 11% ------ ------ ----- Total non-interest expense before goodwill impairment charge 191,965 187,948 4,017 2% Goodwill impairment charge 40,159 - 40,159 n/m Total non-interest expense $232,124 $187,948 $44,176 24% ======== ======== =======
Excluding the goodwill impairment charge, non-interest expense for 2011 increased by $4.0 million, or 2 percent, from 2010. Compensation and employee benefits for 2011 decreased $2.0 million, or 2 percent, and was the result of the reduction in full time equivalent employees. Occupancy and equipment expense decreased $662 thousand, or 3 percent, from the prior year. Other real estate owned expense of $27.3 million increased $5.1 million, or 23 percent, from the prior year. The other real estate owned expense for 2011 included $5.8 million of operating expenses, $16.3 million of fair value write-downs, and $5.2 million of loss on sale of other real estate owned. FDIC premium expense decreased $952 thousand, or 10 percent, from the prior year as a result of a change in the FDIC assessment calculation. Other expense increased $3.6 million, or 11 percent, from the prior year and was primarily driven by increases in debit card expenses and expenses associated with New Market Tax Credit investments.
Provision for loan losses
The Company provisioned slightly more than the amount of net charged-off loans during 2011. The provision for loan losses was $64.5 million for 2011, a decrease of $20.2 million, or 24 percent, from the prior year. Net charged-off loans during 2011 was $64.1 million, a decrease of $26.4 million from 2010. The largest category of net-charge offs was in land, lot and other construction loans which had net-charge offs of $31.3 million, or 49 percent of total net charged-off loans.
Efficiency Ratio
The efficiency ratio was 50 percent for both 2011 and 2010. There was a notable decrease in gain on sale of loans for 2011 compared to 2010 as refinance activity slowed during 2011. The decrease in gain on sale of loans was offset by increases in tax-exempt investment security income.
About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. is a regional multi-bank holding company providing commercial banking services in 60 communities in Montana, Idaho, Utah, Washington, Wyoming and Colorado. Glacier Bancorp, Inc. is headquartered in Kalispell, Montana, and conducts its operations principally through eleven community bank subsidiaries. These subsidiaries include: six banks domiciled in Montana - Glacier Bank of Kalispell, First Security Bank of Missoula, Valley Bank of Helena, Big Sky Western Bank of Bozeman, Western Security Bank of Billings, and First Bank of Montana of Lewistown; two banks domiciled in Idaho - Mountain West Bank of Coeur d'Alene and Citizens Community Bank of Pocatello; two banks domiciled in Wyoming - 1st Bank of Evanston and First Bank of Wyoming; and one bank domiciled in Colorado - Bank of the San Juans of Durango.
On January 18, 2012, the Company announced that it plans to combine its eleven bank subsidiaries into a single commercial bank. The bank subsidiaries will operate as separate divisions of Glacier Bank under the same names, management teams and divisions as before the consolidation. As part of the consolidation, the Company will file with the appropriate federal and state bank regulators an application to merge the bank subsidiaries. The resulting bank Board of Directors and executive officers will be the Board of Directors and senior management team of Glacier Bancorp, Inc. The consolidation is expected to be completed in early second quarter 2012, following regulatory approvals.
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 declines in the housing and real estate markets in its geographic areas; -- increased loan delinquency rates; -- the risks presented by a continued economic downturn, 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; -- 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 integration of acquisitions; -- the goodwill the Company has recorded in connection with acquisitions could become additionally impaired, which may have an adverse impact on our 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 our common stock and our ability to raise additional capital in the future; -- competition from other financial services companies in our markets; -- loss of services from the senior management team; and -- the Company's success in managing risks involved in the foregoing.
The Company does not undertake any obligation to publicly correct or update any forward-looking statement if we later become aware that it is not likely to be achieved.
Visit our website at www.glacierbancorp.com
Glacier Bancorp, Inc. Unaudited Condensed Consolidated Statements of Financial Condition December 31, ------------ (Dollars in thousands, except per share data) 2011 2010 ----------------------- ---- ---- Assets Cash on hand and in banks $104,674 71,465 Interest bearing cash deposits 23,358 33,626 ------ ------ Cash and cash equivalents 128,032 105,091 Investment securities, available-for-sale 3,126,743 2,395,847 Loans held for sale 95,457 76,213 Loans receivable 3,466,135 3,749,289 Allowance for loan and lease losses (137,516) (137,107) -------- -------- Loans receivable, net 3,328,619 3,612,182 Premises and equipment, net 158,872 152,492 Other real estate owned 78,354 73,485 Accrued interest receivable 34,961 30,246 Deferred tax asset 31,081 40,284 Core deposit intangible, net 8,284 10,757 Goodwill 106,100 146,259 Non-marketable equity securities 49,694 65,040 Other assets 41,709 51,391 Total assets $7,187,906 6,759,287 ========== ========= Liabilities Non-interest bearing deposits $1,010,899 855,829 Interest bearing deposits 3,810,314 3,666,073 Securities sold under agreements to repurchase 258,643 249,403 Federal Home Loan Bank advances 1,069,046 965,141 Other borrowed funds 9,995 20,005 Subordinated debentures 125,275 125,132 Accrued interest payable 5,825 7,245 Other liabilities 47,682 32,255 ------ ------ Total liabilities 6,337,679 5,921,083 --------- --------- 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 719 719 Paid-in capital 642,882 643,894 Retained earnings - substantially restricted 173,139 193,063 Accumulated other comprehensive income 33,487 528 ------ --- Total stockholders' equity 850,227 838,204 Total liabilities and stockholders' equity $7,187,906 6,759,287 ========== ========= Number of common stock shares issued and outstanding 71,915,073 71,915,073
Glacier Bancorp, Inc. Unaudited Condensed Consolidated Statements of Operations Three Months ended December 31, Year ended December 31, ---------------------------- ----------------------- (Dollars in thousands, except per share data) 2011 2010 2011 2010 ----------------------- ---- ---- ---- ---- Interest Income Residential real estate loans $8,198 10,780 33,060 45,401 Commercial loans 31,629 34,452 130,249 143,861 Consumer and other loans 9,653 10,171 40,538 42,130 Investment securities, available-for-sale 19,261 13,680 76,262 57,010 Total interest income 68,741 69,083 280,109 288,402 ------ ------ ------- ------- Interest Expense Deposits 5,379 7,903 25,269 35,598 Securities sold under agreements to repurchase 320 2,440 1,353 1,607 Federal Home Loan Bank advances 3,555 380 12,687 9,523 Federal funds purchased and other borrowed funds 69 1,655 224 284 Subordinated debentures 874 42 4,961 6,622 Total interest expense 10,197 12,420 44,494 53,634 ------ ------ ------ ------ Net Interest Income 58,544 56,663 235,615 234,768 Provision for loan losses 8,675 27,375 64,500 84,693 Net interest income after provision for loan losses 49,869 29,288 171,115 150,075 ------ ------ ------- ------- Non-Interest Income Service charges and other fees 11,093 10,923 44,194 43,040 Miscellaneous loan fees and charges 1,041 1,255 3,919 4,906 Gain on sale of loans 7,026 9,842 21,132 27,233 Gain on sale of investments - 2,225 346 4,822 Other income 2,857 1,715 8,608 7,545 Total non-interest income 22,017 25,960 78,199 87,546 ------ ------ ------ ------ Non-Interest Expense Compensation, employee benefits and related expense 21,311 22,485 85,691 87,728 Occupancy and equipment expense 5,890 6,291 23,599 24,261 Advertising and promotions 1,588 1,683 6,469 6,831 Outsourced data processing expense 849 852 3,153 3,057 Other real estate owned expense 12,896 2,847 27,255 22,193 Federal Deposit Insurance Corporation premiums 2,010 2,123 8,169 9,121 Core deposit intangibles amortization 557 758 2,473 3,180 Goodwill impairment charge - - 40,159 - Other expense 10,029 8,697 35,156 31,577 ------ ----- ------ Total non-interest expense 55,130 45,736 232,124 187,948 ------ ------ ------- ------- Earnings Before Income Taxes 16,756 9,512 17,190 49,673 Federal and state income tax expense (benefit) 2,408 (81) (281) 7,343 Net Earnings $14,348 9,593 17,471 42,330 ======= ===== ====== ====== Basic earnings per share $0.20 0.13 0.24 0.61 Diluted earnings per share $0.20 0.13 0.24 0.61 Dividends declared per share $0.13 0.13 0.52 0.52 Average outstanding shares -basic 71,915,073 71,915,073 71,915,073 69,657,980 Average outstanding shares -diluted 71,915,073 71,915,073 71,915,073 69,660,345
Glacier Bancorp, Inc. Average Balance Sheet Three Months ended 12/31/11 Year ended 12/31/11 --------------------------- ------------------- Average Average Average Interest & Yield/ Average Interest & Yield/ (Unaudited - Dollars in thousands) Balance Dividends Rate Balance Dividends Rate -------------- ------- --------- ---- ------- --------- ---- Assets Residential real estate loans $602,142 8,198 5.45% $581,644 33,060 5.68% Commercial loans 2,294,707 31,629 5.47% 2,364,115 130,249 5.51% Consumer and other loans 657,369 9,653 5.83% 680,032 40,538 5.96% ------- ----- ------- ------ Total loans and loans held for sale 3,554,218 49,480 5.52% 3,625,791 203,847 5.62% Tax-exempt investment securities (1) 794,606 8,630 4.34% 705,548 31,420 4.45% Taxable investment securities (2) 2,301,708 10,631 1.85% 2,115,779 44,842 2.12% --------- ------ --------- ------ Total earning assets 6,650,532 68,741 4.10% 6,447,118 280,109 4.34% --------- ------ --------- ------- Goodwill and intangibles 114,678 145,623 Non-earning assets 362,679 330,075 ------- ------- Total assets $7,127,889 $6,922,816 ========== ========== Liabilities NOW accounts $798,040 360 0.18% $775,383 1,906 0.25% Savings accounts 398,146 89 0.09% 387,921 511 0.13% Money market deposit accounts 875,252 671 0.30% 875,127 3,667 0.42% Certificate accounts 1,094,490 3,686 1.34% 1,085,293 16,332 1.50% Wholesale deposits (3) 642,973 573 0.35% 622,808 2,853 0.46% FHLB advances 965,918 3,555 1.46% 942,651 12,687 1.35% Repurchase agreements, federal funds purchased and other borrowed funds 455,438 1,263 1.10% 418,626 6,538 1.56% ------- ----- ------- ----- Total interest bearing liabilities 5,230,257 10,197 0.77% 5,107,809 44,494 0.87% --------- ------ --------- ------ Non-interest bearing deposits 1,006,744 923,039 Other liabilities 40,403 34,343 ------ ------ Total liabilities 6,277,404 6,065,191 --------- --------- Stockholders' Equity Common stock 719 719 Paid-in capital 642,881 643,140 Retained earnings 175,959 195,301 Accumulated other comprehensive income 30,926 18,465 ------ ------ Total stockholders' equity 850,485 857,625 ------- ------- Total liabilities and stockholders' equity $7,127,889 $6,922,816 ========== ========== Net interest income $58,544 $235,615 ======= ======== Net interest spread 3.33% 3.47% Net interest margin 3.49% 3.65% Net interest margin (tax- equivalent) 3.74% 3.89% (1) Excludes tax effect of $3,820,000 and $13,911,000 on tax-exempt investment security income for the three months and year ended December 31, 2011, respectively. (2) Excludes tax effect of $392,000 and $1,568,000 on investment security tax credits for the three months and year ended December 31, 2011, respectively. (3) Wholesale deposits include brokered deposits classified as NOW, money market deposit and certificate accounts, including reciprocal deposits.
Glacier Bancorp, Inc. Loan Portfolio - by Regulatory Classification - Unaudited Loans Receivable by Bank % Change % Change ------------------------ Balance Balance Balance from from (Dollars in thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10 ----------- -------- ------- -------- ------- -------- Glacier $797,530 799,292 866,097 0% -8% Mountain West 707,442 706,589 821,135 0% -14% First Security 575,254 584,172 571,925 -2% 1% Western 272,681 280,683 305,977 -3% -11% 1st Bank 243,216 249,674 266,505 -3% -9% Valley 195,395 192,531 183,003 1% 7% Big Sky 229,640 232,053 249,593 -1% -8% First Bank-WY 130,766 134,952 143,224 -3% -9% Citizens 166,777 164,740 168,972 1% -1% First Bank-MT 112,390 119,308 109,310 -6% 3% San Juans 135,516 134,592 143,574 1% -6% Eliminations and other (5,015) (7,128) (3,813) -30% 32% Loans held for sale (95,457) (67,876) (76,213) 41% 25% Total $3,466,135 3,523,582 3,749,289 -2% -8% ========== ========= ========= Land, Lot and Other Construction Loans by Bank % Change % Change --------------------------------------- Balance Balance Balance from from (Dollars in thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10 ----------- -------- ------- -------- ------- -------- Glacier $101,429 108,291 148,319 -6% -32% Mountain West 91,275 95,794 147,991 -5% -38% First Security 46,899 51,531 72,409 -9% -35% Western 20,216 20,444 29,535 -1% -32% 1st Bank 20,422 22,054 29,714 -7% -31% Valley 13,755 14,046 12,816 -2% 7% Big Sky 43,548 45,514 53,648 -4% -19% First Bank-WY 6,924 7,363 12,341 -6% -44% Citizens 7,905 9,095 12,187 -13% -35% First Bank-MT 731 745 830 -2% -12% San Juans 24,114 24,566 30,187 -2% -20% Other 4,280 2,166 - 98% n/m Total $381,498 401,609 549,977 -5% -31% ======== ======= ======= Land, Lot and Other Construction Loans by Bank, by Type at 12/31/11 ------------------------------------------------------------------- Consumer Developed Commercial Land Land or Unimproved Lots for Developed Other (Dollars in Operative thousands) Development Lot Land Builders Lot Construction ----------- ----------- --- ---- --------- --- ------------ Glacier $37,516 23,026 25,581 6,978 4,889 3,439 Mountain West 12,771 49,785 5,076 12,485 3,283 7,875 First Security 19,915 5,961 15,013 3,447 698 1,865 Western 9,710 4,241 3,157 534 1,649 925 1st Bank 5,060 7,063 2,655 199 1,273 4,172 Valley 1,984 4,495 1,383 - 3,582 2,311 Big Sky 12,275 13,671 7,960 955 2,748 5,939 First Bank-WY 1,758 3,336 784 582 80 384 Citizens 1,977 1,005 1,910 - 621 2,392 First Bank-MT - 56 618 - 57 - San Juans 915 12,757 1,937 - 7,741 764 Other - - - - - 4,280 Total $103,881 125,396 66,074 25,180 26,621 34,346 ======== ======= ====== ====== ====== ====== Custom & Residential Construction Loans by Bank, by Type % Change % Change Owner Pre-Sold ---------------------------------------- Balance Balance Balance from from Occupied & Spec (Dollars in thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10 12/31/11 12/31/11 ----------- -------- ------- -------- ------- -------- -------- -------- Glacier $31,239 31,846 34,526 -2% -10% $8,385 22,854 Mountain West 13,519 12,592 21,375 7% -37% 6,858 6,661 First Security 9,065 8,526 10,123 6% -10% 4,009 5,056 Western 819 1,378 1,350 -41% -39% 302 517 1st Bank 3,295 3,381 6,611 -3% -50% 1,628 1,667 Valley 3,696 3,405 4,950 9% -25% 3,361 335 Big Sky 10,494 10,607 11,004 -1% -5% 971 9,523 First Bank-WY 2,827 2,718 1,958 4% 44% 2,827 - Citizens 7,010 7,946 9,441 -12% -26% 3,280 3,730 First Bank-MT 199 109 502 83% -60% 156 43 San Juans 12,070 6,897 7,018 75% 72% 3,645 8,425 Total $94,233 89,405 108,858 5% -13% $35,422 58,811 ======= ====== ======= ======= ====== n/m - not measurable
Glacier Bancorp, Inc. Loan Portfolio - by Regulatory Classification - Unaudited (continued) Single Family Residential Loans by Bank, by Type % Change % Change 1st Junior -------------------------------------------- Balance Balance Balance from from Lien Lien (Dollars in thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10 12/31/11 12/31/11 ----------- -------- ------- -------- ------- -------- -------- -------- Glacier $174,928 171,245 187,683 2% -7% $155,354 19,574 Mountain West 263,499 260,207 282,429 1% -7% 227,763 35,736 First Security 93,776 89,462 92,011 5% 2% 79,543 14,233 Western 42,124 40,388 42,070 4% 0% 40,216 1,908 1st Bank 53,385 54,647 59,337 -2% -10% 48,953 4,432 Valley 57,068 57,514 60,085 -1% -5% 47,820 9,248 Big Sky 31,275 29,196 32,496 7% -4% 28,253 3,022 First Bank-WY 12,195 12,728 13,948 -4% -13% 8,592 3,603 Citizens 23,722 22,304 19,885 6% 19% 22,487 1,235 First Bank-MT 7,737 8,322 8,618 -7% -10% 6,892 845 San Juans 24,254 27,550 29,124 -12% -17% 22,582 1,672 Total $783,963 773,563 827,686 1% -5% $688,455 95,508 ======== ======= ======= ======== ====== Commercial Real Estate Loans by Bank, by Type % Change % Change Owner Non-Owner ----------------------------------------- Balance Balance Balance from from Occupied Occupied (Dollars in thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10 12/31/11 12/31/11 ----------- -------- ------- -------- ------- -------- -------- -------- Glacier $225,548 219,948 224,215 3% 1% $113,421 112,127 Mountain West 193,495 190,744 206,732 1% -6% 120,162 73,333 First Security 259,396 263,478 227,662 -2% 14% 176,866 82,530 Western 99,900 108,688 103,443 -8% -3% 59,752 40,148 1st Bank 57,445 56,655 58,353 1% -2% 42,347 15,098 Valley 58,392 56,410 50,325 4% 16% 36,127 22,265 Big Sky 84,048 84,681 88,135 -1% -5% 55,399 28,649 First Bank-WY 23,986 25,105 27,609 -4% -13% 18,360 5,626 Citizens 60,754 59,387 61,737 2% -2% 36,716 24,038 First Bank-MT 19,891 17,183 17,492 16% 14% 9,440 10,451 San Juans 50,297 50,963 50,066 -1% 0% 28,541 21,756 Total $1,133,152 1,133,242 1,115,769 0% 2% $697,131 436,021 ========== ========= ========= ======== ======= Consumer Loans by Bank, by Type % Change % Change Home Equity Other ------------------------------- Line of Balance Balance Balance from from Credit Consumer (Dollars in thousands) 12/31/11 9/30/11 12/31/10 9/30/11 12/31/10 12/31/11 12/31/11 ----------- -------- ------- -------- ------- -------- -------- -------- Glacier $134,725 138,174 150,082 -2% -10% $120,794 13,931 Mountain West 63,902 65,800 70,304 -3% -9% 56,515 7,387 First Security 66,549 68,188 71,677 -2% -7% 42,946 23,603 Western 37,657 40,441 43,081 -7% -13% 26,695 10,962 1st Bank 35,567 37,174 40,021 -4% -11% 14,006 21,561 Valley 24,634 23,703 23,745 4% 4% 14,663 9,971 Big Sky 26,229 27,473 27,733 -5% -5% 22,515 3,714 First Bank-WY 22,504 22,658 24,217 -1% -7% 13,372 9,132 Citizens 27,273 28,081 29,040 -3% -6% 22,973 4,300 First Bank-MT 7,093 7,513 8,005 -6% -11% 3,402 3,691 San Juans 13,331 13,800 14,848 -3% -10% 12,348 983 Total $459,464 473,005 502,753 -3% -9% $350,229 109,235 ======== ======= ======= ======== =======
Glacier Bancorp, Inc. Credit Quality Summary - Unaudited Non- Accruing Other Loans 90 Non-performing Assets, by Loan Type Accruing Days Real Estate ----------------------------------- or More Past Balance Balance Balance Loans Due Owned (Dollars in thousands) 12/31/11 9/30/11 12/31/10 12/31/11 12/31/11 12/31/11 ---------- -------- ------- -------- -------- -------- -------- Custom and owner occupied construction $1,531 2,440 2,575 783 - 748 Pre- sold and spec construction 5,506 10,375 16,071 1,098 - 4,408 Land development 56,152 73,550 83,989 31,184 - 24,968 Consumer land or lots 8,878 10,128 12,543 3,942 27 4,909 Unimproved land 35,771 39,925 44,116 19,194 713 15,864 Developed lots for operative builders 9,001 4,195 7,429 7,084 - 1,917 Commercial lots 2,032 2,211 3,110 297 - 1,735 Other construction 5,133 4,832 3,837 4,305 - 828 Commercial real estate 28,828 32,287 36,978 19,181 - 9,647 Commercial and industrial 12,855 14,982 13,127 12,213 342 300 Agriculture loans 7,010 7,115 5,253 6,391 - 619 1-4 family 33,589 39,934 34,791 21,602 292 11,695 Home equity lines of credit 6,361 6,622 4,805 5,749 37 575 Consumer 360 322 446 217 2 141 Other 449 486 1,451 449 - - --- --- ----- --- --- --- Total $213,456 249,404 270,521 133,689 1,413 78,354 ======== ======= ======= ======= ===== ====== Non-Accrual & Accruing Accruing Accruing Loans 30-89 Days Past Due and Loans Loans Other Non-Performing Assets, by Bank 30-89 Days 90 Days or Real Estate ------------------------------ More Past Balance Balance Balance Past Due Due Owned (Dollars in thousands) 12/31/11 9/30/11 12/31/10 12/31/11 12/31/11 12/31/11 ---------- -------- ------- -------- -------- -------- -------- Glacier $69,324 74,783 75,869 10,176 49,042 10,106 Mountain West 60,593 58,264 83,872 16,402 25,117 19,074 First Security 59,713 54,310 59,770 13,648 28,339 17,726 Western 7,651 8,652 11,237 1,937 448 5,266 1st Bank 18,158 19,096 16,686 3,693 9,302 5,163 Valley 2,444 1,951 1,900 863 728 853 Big Sky 19,795 20,911 21,739 410 11,549 7,836 First Bank- WY 8,965 10,335 9,901 321 6,910 1,734 Citizens 5,992 5,906 8,000 1,175 3,126 1,691 First Bank- MT 397 116 553 119 278 - San Juans 3,180 5,059 6,549 342 263 2,575 GORE 6,330 11,151 19,942 - - 6,330 Total $262,542 270,534 316,018 49,086 135,102 78,354 ======== ======= ======= ====== ======= ====== Provision for Provision for Year-to-Date ALLL Year-to- Ended as a Allowance for Loan and Lease Losses Date 12/31/11 Percent ----------------------------------- Balance Balance Balance Ended Over Net of Loans (Dollars in thousands) 12/31/11 9/30/11 12/31/10 12/31/11 Charge-Offs 12/31/11 ---------- -------- ------- -------- -------- ----------- -------- Glacier $35,336 35,854 34,701 16,800 1.0 4.51% Mountain West 36,167 35,437 35,064 30,100 1.0 5.38% First Security 22,457 21,898 19,046 9,950 1.5 3.96% Western 7,320 7,459 7,606 550 0.7 2.87% 1st Bank 8,572 8,998 10,467 1,950 0.5 3.55% Valley 4,216 4,227 4,651 - - 2.23% Big Sky 8,860 8,883 9,963 2,350 0.7 3.90% First Bank- WY 2,180 2,712 2,527 700 0.7 1.67% Citizens 5,325 5,272 5,502 1,300 0.9 3.43% First Bank- MT 2,894 3,022 3,020 - - 2.58% San Juans 4,189 4,331 4,560 800 0.7 3.09% Total $137,516 138,093 137,107 64,500 1.0 3.97% ======== ======= ======= ======
Glacier Bancorp, Inc. Credit Quality Summary - Unaudited (continued) Net Charge-Offs (Recoveries), Year-to-Date Period Ending, By Bank ---------------------- Balance Balance Balance Charge-Offs Recoveries (Dollars in thousands) 12/31/11 9/30/11 12/31/10 12/31/11 12/31/11 ---------- -------- ------- -------- -------- -------- Glacier $16,165 14,547 24,327 17,579 1,414 Mountain West 28,997 25,627 47,487 31,535 2,538 First Security 6,539 4,398 7,296 6,971 432 Western 836 697 2,106 1,010 174 1st Bank 3,845 3,294 2,578 4,287 442 Valley 435 424 216 460 25 Big Sky 3,453 3,180 4,048 3,581 128 First Bank- WY 1,047 315 605 1,067 20 Citizens 1,477 1,330 1,363 1,562 85 First Bank- MT 126 (2) 149 141 15 San Juans 1,171 1,029 338 1,173 2 Total $64,091 54,839 90,513 69,366 5,275 ======= ====== ====== ====== ===== Net Charge-Offs, Year-to-Date Period Ending, By Loan Type --------------------------- Balance Balance Balance Charge-Offs Recoveries (Dollars in thousands) 12/31/11 9/30/11 12/31/10 12/31/11 12/31/11 ---------- -------- ------- -------- -------- -------- Residential construction $4,275 4,950 7,147 5,168 893 Land, lot and other construction 31,306 26,341 51,580 33,162 1,856 Commercial real estate 7,676 6,875 10,181 8,278 602 Commercial and industrial 7,871 7,365 5,612 8,424 553 Agriculture loans 134 134 - 136 2 1-4 family 8,694 6,082 9,897 9,260 566 Home equity lines of credit 3,261 2,343 4,496 3,698 437 Consumer 615 454 951 914 299 Other 259 295 649 326 67 --- Total $64,091 54,839 90,513 69,366 5,275 ======= ====== ====== ====== =====
SOURCE Glacier Bancorp, Inc.