GLACIER BANCORP, INC. 
By KALISPELL, Mont., Jan. 27, 2011 /PRNewswire/ --
Earnings Summary - unaudited Three months Twelve months
($ in thousands, except per ended December
share data) 31, ended December 31,
--------------- ------------------
2010 2009 2010 2009
---- ---- ---- ----
Net earnings $9,593 9,474 $42,330 34,374
Diluted earnings per share $0.13 0.15 $0.61 0.56
Return on average assets
(annualized) 0.58% 0.62% 0.67% 0.60%
Return on average equity
(annualized) 4.47% 5.43% 5.18% 4.97%
Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net earnings of $9.6 million for the fourth quarter of 2010, an increase of $119 thousand, or 1 percent, from the $9.5 million for the fourth quarter of 2009. The diluted earnings per share of $0.13 for the quarter represented a 13 percent decrease from the diluted earnings per share of $0.15 for the same quarter of 2009. This quarter's earnings per share includes $0.02 per share from the gain on sale of investments, net of tax. Annualized return on average assets and return on average equity for the fourth quarter were 0.58 percent and 4.47 percent, respectively, which compares with prior year returns for the fourth quarter of 0.62 percent and 5.43 percent, respectively.
Net earnings for the year ended December 31, 2010 were $42.3 million, which is an increase of $8.0 million or 23 percent, over the prior year. Diluted earnings per share of $0.61 is an increase of 9 percent over $0.56 earned in 2009.
"Fourth quarter earnings were in line with what we anticipated; however, our performance for the year was again below what we have achieved in the past and expect to deliver in the future," said Mick Blodnick, President and Chief Executive Officer. "Although the economy is showing some signs of improvement and asset quality looks to be stabilizing, the current rate environment will continue to challenge our net interest margin as it has the past seven quarters," Blodnick said. "Hopefully in 2011 loan demand will improve which would really help our margin. Until that time we will continue to deploy our excess liquidity by purchasing short duration agency mortgage-backed-securities. Unfortunately this type of structure with its low return places further stress on our asset yield."
December September December
Assets 31, 30, 31,
(Unaudited -$ in
thousands) 2010 2010 2009
---- ---- ----
Cash on hand and in banks $71,465 83,684 120,731
Investments, interest
bearing deposits,
FHLB stock, FRB stock, and
fed funds 2,494,513 1,856,989 1,596,238
Loans:
Residential real estate 709,090 787,335 797,626
Commercial 2,451,091 2,515,767 2,613,218
Consumer and other 665,321 680,858 719,401
------- ------- -------
Loans receivable, gross 3,825,502 3,983,960 4,130,245
Allowance for loan and
lease losses (137,107) (134,257) (142,927)
-------- -------- --------
Loans receivable, net 3,688,395 3,849,703 3,987,318
--------- --------- ---------
Other assets 504,914 482,283 487,508
------- ------- -------
Total assets $6,759,287 6,272,659 6,191,795
========== ========= =========
Assets $Change from $Change from
September December
30, 31,
(Unaudited -$ in
thousands) 2010 2009
---- ----
Cash on hand and in banks (12,219) (49,266)
Investments, interest
bearing deposits,
FHLB stock, FRB stock, and
fed funds 637,524 898,275
Loans:
Residential real estate (78,245) (88,536)
Commercial (64,676) (162,127)
Consumer and other (15,537) (54,080)
------- -------
Loans receivable, gross (158,458) (304,743)
Allowance for loan and
lease losses (2,850) 5,820
------ -----
Loans receivable, net (161,308) (298,923)
-------- --------
Other assets 22,631 17,406
------ ------
Total assets 486,628 567,492
======= =======
Total assets at December 31, 2010 were $6.759 billion, which is $487 million, or 8 percent greater than total assets of $6.273 billion at September 30, 2010 and $567 million, or 9 percent greater than total assets of $6.192 billion at December 31, 2009.
Investment securities, including interest bearing deposits, FHLB and FRB stock, and federal funds sold, have increased $638 million, or 34 percent, from September 30, 2010 and increased $898 million, or 56 percent, since December 31, 2009. "This quarter we were successful in purchasing a sufficient amount of investment securities to help offset the reduction of our loan portfolio and the increased amount of amortization of our agency mortgage-backed securities portfolio," Blodnick said. "It has been a challenge this year finding the specific investment structures we desire in any significant quantity. Fortunately that market opened up some in the latest quarter and we took advantage of it," Blodnick said. The Company continues to purchase investment securities as loan originations slow, such purchases predominately mortgage-backed securities issued by Freddie Mac and Fannie Mae with short weighted-average-lives. While mitigating against extension-risk, such securities have lower yields. These security purchases allow the Company to create incremental yield without taking any long-term interest rate risk. The Company also continues to selectively purchase tax-exempt investment securities. Investment securities represent 37 percent of total assets at December 31, 2010 versus 26 percent of total assets at December 31, 2009.
At December 31, 2010, gross loans were $3.826 billion, a decrease of $158 million over gross loans of $3.984 billion at September 30, 2010. Gross loans decreased $305 million, or 7 percent, over gross loans of $4.130 billion at December 31, 2009. The largest decrease in dollars was in commercial loans which decreased $162 million, or 6 percent, from December 31, 2009. The largest percentage decrease was in residential real estate loans which decreased $89 million, or 11 percent, from December 31, 2009. The decrease in each loan category is due to slower loan demand within the Company's market areas. Excluding net charge-offs of $91 million, loans transferred to other real estate of $72 million, and an increase in loans held for sale of $10 million, loans decreased $152 million, or 4 percent from December 31, 2009.
December September December
Credit Quality Summary 31, 30, 31,
(Unaudited - $ in thousands) 2010 2010 2009
---- ---- ----
Allowance for loan and lease losses -
beginning of year $142,927 142,927 76,739
Provision expense 84,693 57,318 124,618
Charge-offs (93,950) (68,868) (60,896)
Recoveries 3,437 2,880 2,466
Allowance for loan and lease losses -
end of period $137,107 134,257 142,927
======== ======= =======
Other real estate owned $73,485 63,440 57,320
Accruing loans 90 days or more
overdue 4,531 5,335 5,537
Non-accrual loans 192,505 192,695 198,281
Total non-performing assets $270,521 261,470 261,138
======== ======= =======
Allowance for loan and lease losses
as a percentage of non-performing
assets 51% 51% 55%
Non-performing assets as a
percentage of subsidiary assets 3.91% 4.03% 4.13%
Allowance for loan and lease losses
as a percentage of total loans 3.58% 3.37% 3.46%
Net charge-offs as a percentage of
total loans 2.37% 1.66% 1.42%
Accruing loans 30-89 days overdue $45,497 40,923 87,491
Credit Quality
At December 31, 2010, the allowance for loan and lease losses ("allowance") was $137.1 million, an increase of $2.9 million from the prior quarter and a decrease of $5.8 million from prior year end. The allowance was 3.58 percent of total loans outstanding at December 31, 2010, with such percentage up from the 3.37 percent at September 30, 2010 and the 3.46 percent at December 31, 2009. "Sales activity slowed down significantly in the fourth quarter which was not a big surprise given that winter is traditionally a difficult time to generate much interest in the sale of real estate lots and land development projects," Blodnick said. "We hope that as spring approaches the activity level experienced last year will improve further and provide an opportunity to again dispose of some of these troubled assets. In the mean time, we continue to reduce our exposure to the types of loans that have caused us the most loss, mainly land lot and other construction," Blodnick said. The allowance was 51 percent of non-performing assets at December 31, 2010, compared to 51 percent at the prior quarter and down slightly from 55 percent a year ago. Non-performing assets as a percentage of total subsidiary assets at December 31, 2010 were at 3.91 percent, down from 4.03 percent as of prior quarter, and down from 4.13 percent at prior year end. Early stage delinquencies (accruing 30-89 days past due) of $45.5 million at December 31, 2010 increased slightly from prior quarter's $40.9 million, but improved from prior year's $87.5 million. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of additional provision for loan loss expense at each subsidiary bank.
Credit Quality Trends
(Unaudited -$ in
thousands)
Provision ALLL
as a
for Loan Net Percent
Charge-
Losses Offs of Loans
------ ------- --------
Q4 2010 $27,375 24,525 3.58%
Q3 2010 19,162 26,570 3.37%
Q2 2010 17,246 19,181 3.51%
Q1 2010 20,910 20,237 3.53%
Q4 2009 36,713 19,116 3.46%
Q3 2009 47,050 19,094 3.10%
Q2 2009 25,140 11,543 2.36%
Q1 2009 15,715 8,677 2.01%
Credit Quality Trends
(Unaudited -$ in
thousands) Accruing
Non-
Loans 30-89 Performing
Days
Overdue Assets to
as a Total
Percent of Subsidiary
Loans Assets
----- ------
Q4 2010 1.19% 3.91%
Q3 2010 1.03% 4.03%
Q2 2010 0.90% 4.01%
Q1 2010 1.50% 4.19%
Q4 2009 2.12% 4.13%
Q3 2009 1.08% 4.10%
Q2 2009 1.52% 3.06%
Q1 2009 1.60% 1.97%
Allowance for Loan and Lease Losses
The current quarter provision for loan loss expense was $27.4 million, an increase of $8.2 million from the prior quarter and a decrease of $9.3 million from the fourth quarter in 2009. Net charged-off loans for the current quarter were $24.5 million compared to $26.6 million for the prior quarter and $19.1 million for the same quarter in 2009.
During the second quarter of 2010, the Company formed a wholly owned subsidiary, GBCI Other Real Estate ("GORE") to isolate bank foreclosed properties for legal protection and administrative purposes. During the year, foreclosed properties were transferred to the new entity from bank subsidiaries at fair market value and such properties are currently held for sale.
For additional information regarding credit quality and a breakout of the loan portfolio by regulatory classification, see the exhibits at the end of this press release.
December September December
Liabilities 31, 30, 31,
(Unaudited - $ in thousands) 2010 2010 2009
---- ---- ----
Non-interest bearing deposits $855,829 887,637 810,550
Interest bearing deposits 3,666,073 3,530,204 3,289,602
Federal Home Loan Bank
advances 965,141 579,184 790,367
Federal Reserve Bank discount
window - - 225,000
Securities sold under
agreements to repurchase and
other borrowed funds 269,408 254,995 226,251
Other liabilities 39,500 41,889 39,147
Subordinated debentures 125,132 125,096 124,988
------- ------- -------
Total liabilities $5,921,083 5,419,005 5,505,905
========== ========= =========
$Change from $Change from
September December
Liabilities 30, 31,
(Unaudited - $ in thousands) 2010 2009
---- ----
Non-interest bearing deposits (31,808) 45,279
Interest bearing deposits 135,869 376,471
Federal Home Loan Bank
advances 385,957 174,774
Federal Reserve Bank discount
window - (225,000)
Securities sold under
agreements to repurchase and
other borrowed funds 14,413 43,157
Other liabilities (2,389) 353
Subordinated debentures 36 144
Total liabilities 502,078 415,178
======= =======
As of December 31, 2010, non-interest bearing deposits of $856 million decreased $32 million, or 4 percent, since September 30, 2010 and increased $45 million, or 6 percent, since December 31, 2009. Interest bearing deposits of $3.666 billion at December 31, 2010 include $203 million issued through the Certificate of Deposit Account Registry System ("CDARS"). Interest bearing deposits increased $136 million, or 4 percent, from September 30, 2010 and $376 million, or 11 percent from December 31, 2009. The increase in interest bearing deposits from September 30, 2010 and December 31, 2009 includes $51 million and $226 million, respectively, from wholesale deposits, including CDARS. The increase in non-interest bearing deposits from prior year end and the increase in interest bearing deposits from the prior quarter and prior year end was driven by a greater number of personal and business customers, as well as existing customers retaining cash deposits because of the uncertainty in the current interest rate environment and for liquidity purposes. The decrease in non-interest bearing deposits from the prior quarter resulted primarily from seasonal decreases that typically occur during the fourth quarter.
Increases in deposits have reduced the Company's reliance on the amount of borrowings necessary to fund investment security growth over the prior quarter and prior year end. Federal Home Loan Bank advances increased $386 million, or 67 percent, from September 30, 2010 and increased $175 million, or 22 percent, from December 31, 2009. There were no Federal Reserve Bank borrowings through the Term Auction Facility ("TAF") program at December 31, 2010 or September 30, 2010 due to cessation of the TAF program by the Federal Reserve. Repurchase agreements and other borrowed funds were $269 million at December 31, 2010, an increase of $43 million, or 19 percent, from December 31, 2009.
December September December
Stockholders' equity - unaudited 31, 30, 31,
($ in thousands except per share
data) 2010 2010 2009
---- ---- ----
Common equity $837,676 837,212 686,238
Accumulated other comprehensive
income (loss) 528 16,442 (348)
--- ------ ----
Total stockholders' equity 838,204 853,654 685,890
Goodwill and core deposit
intangible, net (157,016) (157,774) (160,196)
-------- -------- --------
Tangible stockholders' equity $681,188 695,880 525,694
======== ======= =======
Stockholders' equity to total
assets 12.40% 13.61% 11.08%
Tangible stockholders' equity to
total tangible assets 10.32% 11.38% 8.72%
Book value per common share $11.66 11.87 11.13
Tangible book value per common
share $9.47 9.68 8.53
Market price per share at end of
period $15.11 14.59 13.72
$Change from $Change from
September December
Stockholders' equity - unaudited 30, 31,
($ in thousands except per share
data) 2010 2009
---- ----
Common equity 464 151,438
Accumulated other comprehensive
income (loss) (15,914) 876
------- ---
Total stockholders' equity (15,450) 152,314
Goodwill and core deposit
intangible, net 758 3,180
--- -----
Tangible stockholders' equity (14,692) 155,494
======= =======
Stockholders' equity to total
assets
Tangible stockholders' equity to
total tangible assets
Book value per common share (0.21) 0.53
Tangible book value per common
share (0.21) 0.94
Market price per share at end of
period 0.52 1.39
Total stockholders' equity and book value per share decreased $15 million and $0.21 per share, respectively, from the prior quarter resulting from the decrease in accumulated other comprehensive income representing net unrealized gains or losses (net of tax) on the securities portfolio. Total stockholders' equity and book value per share increased $152 million and $0.53 per share, respectively, from December 31, 2009, the increase largely the result of the $146 million in net proceeds from the Company's March equity offering of 10.291 million shares. Tangible stockholders' equity has increased $155 million, or 30 percent, since December 31, 2009 with tangible stockholders' equity to tangible assets at 10.32 percent and 8.72 percent as of December 31, 2010 and December 31, 2009, respectively.
Cash Dividend
On December 29, 2010, the board of directors declared a cash dividend of $0.13 per share, payable January 20, 2011 to shareholders of record on January 11, 2011. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality and general economic conditions.
Operating Results for Three Months Ended December 31, 2010
----------------------------------------------------------
Compared to September 30, 2010 and December 31, 2009
----------------------------------------------------
Revenue summary
(Unaudited -$ in
thousands) Three months ended
------------------
December September December
31, 30, 31,
2010 2010 2009
---- ---- ----
Net interest income
Interest income $69,083 72,103 78,112
Interest expense 12,420 13,581 14,273
------ ------ ------
Total net interest income 56,663 58,522 63,839
Non-interest income
Service charges, loan
fees, and other fees 12,178 13,222 12,212
Gain on sale of loans 9,842 7,367 6,089
Gain on sale of
investments 2,225 2,041 3,328
Other income 1,715 1,355 4,450
----- ----- -----
Total non-interest
income 25,960 23,985 26,079
------ ------ ------
$82,623 82,507 89,918
======= ====== ======
Net interest margin (tax-
equivalent) 3.91% 4.19% 4.70%
==== ==== ====
($ in thousands) $Change from $Change from
September December
30, 31,
2010 2009
---- ----
Net interest income
Interest income $(3,020) (9,029)
Interest expense (1,161) (1,853)
------ ------
Total net interest income (1,859) (7,176)
Non-interest income
Service charges, loan fees, and
other fees (1,044) (34)
Gain on sale of loans 2,475 3,753
Gain on sale of investments 184 (1,103)
Other income 360 (2,735)
Total non-interest income 1,975 (119)
----- ----
$116 (7,295)
==== ======
% Change % Change
($ in thousands) from from
September December
30, 31,
2010 2009
---- ----
Net interest income
Interest income -4% -12%
Interest expense -9% -13%
Total net interest income -3% -11%
Non-interest income
Service charges, loan fees, and
other fees -8% 0%
Gain on sale of loans 34% 62%
Gain on sale of investments 9% -33%
Other income 27% -61%
Total non-interest income 8% 0%
0% -8%
Net Interest Income
Net interest income decreased $1.9 million from the prior quarter and decreased $7.2 million over prior year's fourth quarter. The current quarter net interest margin as a percentage of earning assets, on a tax-equivalent basis, was 3.91 percent which is 28 basis points lower than the 4.19 percent for the prior quarter which includes a 6 basis points reduction from the reversal of interest on non-accrual loans. The net interest margin for the current quarter is 79 basis points lower than the 4.70 percent result for the fourth quarter of 2009.
The decrease in interest income is primarily due to a lower yield and volume of loans. In addition, the Company purchased a significant amount of investment securities, 82 percent of which were U.S. Agency-issued mortgage-backed securities, such securities purchased at a premium in order to achieve the structure desired. The recent increase in refinance activity caused a significant increase in premium amortization of the mortgage-backed securities portfolio during the quarter, the effect of which caused a decrease in interest income and a significant drop in the net interest margin. As the refinance activity funnels through the mortgage-backed securities portfolio, the premium amortization is expected to slow. The decrease in interest expense is primarily attributable to the rate decreases on interest bearing deposits and lower cost borrowings. "The additional premium amortization in the quarter resulted in a 28 basis point reduction in the net interest margin compared to the prior quarter and a 56 basis point reduction from the year ago quarter," said Ron Copher, Chief Financial Officer.
Non-interest Income
Non-interest income for the quarter totaled $26.0 million, an increase of $2.0 million over the prior quarter and a decrease of $119 thousand over the same quarter last year. Fee income of $12.2 million decreased $1.0 million, or 8 percent, during the quarter. The decrease from the prior quarter was primarily due to seasonal factors and higher volumes occurring in the third quarter historically. Gain on sale of loans increased $2.5 million, or 34 percent, over the prior quarter and $3.8 million, or 62 percent, over prior year's fourth quarter, primarily the result of significant mortgage purchase and refinance activity during the fourth quarter of 2010. "The banks continued to focus on their mortgage lending activity during the recent refinancing 'boomlet' as reflected in the strong mortgage fee income achieved for the quarter," said Ron Copher, Chief Financial Officer. Net gain on sale of investments was $2.2 million for the current quarter compared to $2.0 million for the previous quarter and $3.3 million for the prior year's fourth quarter. Such sales were executed with the proceeds used to purchase securities that enable the investment portfolio to perform well across varying interest rate scenarios. Other income of $1.7 million for the current quarter is an increase of $360 thousand from the prior quarter, such increase includes the $194 thousand gain in the fourth quarter sale of 1(st) Bank's merchant card servicing portfolio. Other income in the prior year's fourth quarter included a $3.5 million one-time bargain purchase gain from the acquisition of First National Bank and Trust ("First National"). Excluding the bargain purchase gain, other income increased $747 thousand from the prior year's fourth quarter.
Non-interest expense
summary Three months ended
------------------
(Unaudited -$ in December September December
thousands) 31, 30, 31,
2010 2010 2009
---- ---- ----
Compensation and employee
benefits and related
expense $22,485 $22,235 $21,376
Occupancy and equipment
expense 6,291 6,034 6,130
Advertising and promotions 1,683 1,912 1,435
Outsourced data processing
expense 852 750 850
Core deposit intangibles
amortization 758 801 822
Other real estate owned
expense 2,847 9,655 3,370
Federal Deposit Insurance
premiums 2,123 2,633 1,940
Other expenses 8,697 7,995 8,410
----- ----- -----
Total non-interest expense $45,736 $52,015 $44,333
======= ======= =======
(Unaudited -$ in
thousands) $Change from $Change from
September December
30, 31,
2010 2009
---- ----
Compensation and employee
benefits and related
expense $250 $1,109
Occupancy and equipment
expense 257 161
Advertising and promotions (229) 248
Outsourced data processing
expense 102 2
Core deposit intangibles
amortization (43) (64)
Other real estate owned
expense (6,808) (523)
Federal Deposit Insurance
premiums (510) 183
Other expenses 702 287
---
Total non-interest expense $(6,279) $1,403
======= ======
(Unaudited -$ in % Change % Change
thousands) from from
September December
30, 31,
2010 2009
---- ----
Compensation and employee
benefits and related
expense 1% 5%
Occupancy and equipment
expense 4% 3%
Advertising and promotions -12% 17%
Outsourced data processing
expense 14% 0%
Core deposit intangibles
amortization -5% -8%
Other real estate owned
expense -71% -16%
Federal Deposit Insurance
premiums -19% 9%
Other expenses 9% 3%
Total non-interest expense -12% 3%
Non-interest Expense
Non-interest expense of $45.7 million for the quarter decreased by $6.3 million, or 12 percent, from the prior quarter and increased $1.4 million, or 3 percent, from the prior year fourth quarter. Compensation and employee benefits of $22.5 million increased $1.1 million, or 5 percent, from the prior year fourth quarter and is primarily due to the increased number of full-time equivalent employees, which increased from 1,643 to 1,674 since the end of the 2009 fourth quarter.
Occupancy and equipment expense increased $257 thousand, or 4 percent, from the prior quarter and increased $161 thousand, or 3 percent, from the prior year fourth quarter. Advertising and promotion expense decreased $229 thousand, or 12 percent, from the prior quarter. The third quarters advertising expense was abnormally high due to the aggressive marketing relating to the other real estate owned. Advertising and promotion expense increased $248 thousand, or 17 percent, from the fourth quarter of 2009. Other real estate owned expenses decreased $6.8 million, or 71 percent, from the prior quarter which included $6.4 million in fair value write-downs. Other real estate owned expenses decreased $523 thousand, or 16 percent, from prior year fourth quarter. The current quarter other real estate owned expense of $2.8 million included $1.7 million of operating expenses, $707 thousand of fair value write-downs, and $365 thousand of loss on sale of other real estate owned. FDIC premiums decreased $510 thousand, or 19 percent, from prior quarter and increased $183 thousand, or 9 percent, from the prior year fourth quarter. Other expenses increased $702 thousand, or 9 percent, from the prior quarter and increased $287 thousand, or 3 percent, from the prior year fourth quarter.
Efficiency Ratio
In 2010, the Company revised the efficiency ratio calculation to be consistent with industry reporting by SNL Financial and has also revised the efficiency ratio reported for all prior periods. The efficiency ratio is now calculated as non-interest expense before other real estate owned expenses, core deposit intangible amortization, and non-recurring expense items as a percentage of fully taxable equivalent net interest income and non-interest income, excluding gains and losses on sale of investment securities, other real estate owned income, and non-recurring income items. The efficiency ratio for the quarter was 52 percent compared to 47 percent for the prior year fourth quarter. The increase resulted from continuing pressure on net interest income in the current low interest rate environment coupled with increases in operating expenses.
Operating Results for Twelve Months Ended December 31, 2010 Compared to
-----------------------------------------------------------------------
December 31, 2009
-----------------
Revenue summary Twelve months ended
-------------------
December December
(Unaudited - $ in thousands) 31, 31,
2010 2009
---- ----
Net interest income
Interest income $288,402 $302,494
Interest expense 53,634 57,167
------ ------
Net interest income 234,768 245,327
Non-interest income
Service charges, loan fees, and
other fees 47,946 45,871
Gain on sale of loans 27,233 26,923
Gain on sale of investments 4,822 5,995
Other income 7,545 7,685
----- -----
Total non-interest income 87,546 86,474
------ ------
$322,314 $331,801
======== ========
Net interest margin (tax-
equivalent) 4.21% 4.82%
==== ====
% Change
Revenue summary $Change From From
December December
(Unaudited - $ in thousands) 31, 31,
2009 2009
---- ----
Net interest income
Interest income $(14,092) -5%
Interest expense (3,533) -6%
------
Net interest income (10,559) -4%
Non-interest income
Service charges, loan fees, and
other fees 2,075 5%
Gain on sale of loans 310 1%
Gain on sale of investments (1,173) -20%
Other income (140) -2%
----
Total non-interest income 1,072 1%
-----
$(9,487) -3%
=======
Net interest margin (tax-equivalent)
Net Interest Income
Net interest income for the year decreased $10.6 million, or 4 percent, over 2009. Total interest income decreased $14 million, or 5 percent, while total interest expense decreased $3.5 million, or 6 percent. The net interest margin as a percentage of earning assets, on a tax equivalent basis, decreased 61 basis points from 4.82 percent for 2009 to 4.21 percent for 2010 which includes a 6 basis points reduction from the reversal of interest on non-accrual loans. As previously discussed, the continuing decrease in lower yield and volume loans coupled with an increase in lower yielding investment securities continues to put pressure on both the interest income and net interest margin.
Non-interest Income
Non-interest income increased for the year by $1.0 million over the same period in 2009. Fee income for 2010 increased $2.1 million, or 5 percent, compared to the prior year primarily from an increase in debit card income. Gain on sale of loans has remained at historical highs of $27.2 million for the year, which is an increase of $310 thousand, or 1 percent, over last year. Included in current year other income is $2.0 million in one-time gains on merchant card servicing portfolios and included in prior year other income is $3.5 million in a one-time bargain purchase gain from the acquisition of First National. Excluding one-time gains, other income increased $1.3 million over the same period in 2009, much of which related to income and gain on sale of other real estate owned.
Non-interest expense
summary Twelve months ended
-------------------
(Unaudited -$ in December December
thousands) 31, 31,
2010 2009
---- ----
Compensation and employee
benefits and related
expense $87,728 $84,965
Occupancy and equipment
expense 24,261 23,471
Advertising and promotions 6,831 6,477
Outsourced data processing
expense 3,057 3,031
Core deposit intangibles
amortization 3,180 3,116
Other real estate owned
expense 22,193 9,092
Federal Deposit Insurance
premiums 9,121 8,639
Other expenses 31,577 30,027
------ ------
Total non-interest expense $187,948 $168,818
======== ========
Non-interest expense % Change
summary $Change From From
(Unaudited -$ in December December
thousands) 31, 31,
2009 2009
---- ----
Compensation and employee
benefits and related
expense $2,763 3%
Occupancy and equipment
expense 790 3%
Advertising and promotions 354 5%
Outsourced data processing
expense 26 1%
Core deposit intangibles
amortization 64 2%
Other real estate owned
expense 13,101 144%
Federal Deposit Insurance
premiums 482 6%
Other expenses 1,550 5%
-----
Total non-interest expense $19,130 11%
=======
Non-interest Expense
Non-interest expense for 2010 increased by $19.1 million, or 11 percent, from the same period last year. Compensation and employee benefits increased $2.8 million, or 3 percent, from 2009 which relates to the increase in full-time equivalent employees including the addition of First National employees in October 2009. Occupancy and equipment expense increased $790 thousand, or 3 percent, from 2009. Advertising and promotion expense increased by $354 thousand, or 5 percent, from 2009. The primary category that saw much higher expense was the other real estate owned which increased $13.1 million, or 144 percent, from the prior year. The other real estate owned expenses of $22.2 million for 2010 included $5.1 million of operating expenses, $10.4 million of fair value write-downs, and $6.7 million of loss on sale of other real estate owned. FDIC premiums increased $482 thousand, or 6 percent, from the prior year which included a second quarter special assessment of $2.5 million. Other expense increased $1.6 million, or 5 percent, from the prior year.
Allowance for Loan and Lease Losses
The provision for loan loss expense was $84.7 million for 2010, a decrease of $39.9 million, or 32 percent, from the same period in 2009. Net charged-off loans during the year ended December 31, 2010 was $90.5 million, an increase of $32.1 million from the same period in 2009.
Efficiency Ratio
The efficiency ratio for 2010 was 50 percent compared to 46 percent for 2009. The increase in efficiency ratio resulted from continuing pressure on net interest income in the current low interest rate environment coupled with small increases in operating expenses.
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 National Bank & Trust of Powell; and one bank domiciled in Colorado - Bank of the San Juans of Durango.
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 recorded in connection with acquisitions could become
impaired, which may have an adverse impact on the Company's earnings and
capital;
-- reduced demand for banking products and services;
-- the risks presented by public stock market volatility, which could
adversely affect the Company's stock value and the ability to raise
capital in the future;
-- competition from other financial services companies in our markets; 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.
Consolidated Condensed Statements of Financial Condition
(Unaudited -$ in thousands except per December December
share data) 31, 31,
-------------------------------------
2010 2009
---- ----
Assets:
Cash on hand and in banks $71,465 120,731
Federal funds sold - 87,155
Interest bearing cash deposits 33,394 2,689
------ -----
Cash and cash equivalents 104,859 210,575
Investment securities, available-for-
sale 2,461,119 1,506,394
Loans held for sale 76,213 66,330
Loans receivable 3,749,289 4,063,915
Allowance for loan and lease losses (137,107) (142,927)
-------- --------
Loans receivable, net 3,688,395 3,987,318
--------- ---------
Premises and equipment, net 152,492 140,921
Other real estate owned 73,485 57,320
Accrued interest receivable 30,246 29,729
Deferred tax asset 40,284 41,082
Core deposit intangible, net 10,757 13,937
Goodwill 146,259 146,259
Other assets 51,391 58,260
------ ------
Total assets $6,759,287 6,191,795
========== =========
Liabilities:
Non-interest bearing deposits $855,829 810,550
Interest bearing deposits 3,666,073 3,289,602
Federal Home Loan Bank advances 965,141 790,367
Securities sold under agreements to
repurchase 249,403 212,506
Federal Reserve Bank discount window - 225,000
Other borrowed funds 20,005 13,745
Accrued interest payable 7,245 7,928
Subordinated debentures 125,132 124,988
Other liabilities 32,255 31,219
------ ------
Total liabilities 5,921,083 5,505,905
--------- ---------
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 719 616
Paid-in capital 643,894 497,493
Retained earnings -substantially
restricted 193,063 188,129
Accumulated other comprehensive income
(loss) 528 (348)
--- ----
Total stockholders' equity 838,204 685,890
------- -------
Total liabilities and stockholders' equity $6,759,287 6,191,795
========== =========
Number of shares outstanding 71,915,073 61,619,803
Book value of equity per share 11.66 11.13
Glacier Bancorp, Inc.
Consolidated Condensed Statements of Operations
(Unaudited -$ in thousands except Three months ended
per share data) December 31,
--------------------------------- ------------------
2010 2009
---- ----
Interest income:
Residential real estate loans $10,780 12,956
Commercial loans 34,452 39,278
Consumer and other loans 10,171 11,213
Investment securities 13,680 14,665
------ ------
Total interest income 69,083 78,112
------ ------
Interest expense:
Deposits 7,903 9,630
Federal Home Loan Bank advances 2,440 2,194
Securities sold under agreements
to repurchase 380 557
Subordinated debentures 1,655 1,594
Other borrowed funds 42 298
--- ---
Total interest expense 12,420 14,273
------ ------
Net interest income 56,663 63,839
Provision for loan losses 27,375 36,713
------ ------
Net interest income after
provision for loan losses 29,288 27,126
------ ------
Non-interest income:
Service charges and other fees 10,923 10,627
Miscellaneous loan fees and
charges 1,255 1,585
Gain on sale of loans 9,842 6,089
Gain on sale of investments 2,225 3,328
Other income 1,715 4,450
----- -----
Total non-interest income 25,960 26,079
------ ------
Non-interest expense:
Compensation, employee benefits
and related expense 22,485 21,376
Occupancy and equipment expense 6,291 6,130
Advertising and promotions 1,683 1,435
Outsourced data processing expense 852 850
Core deposit intangibles
amortization 758 822
Other real estate owned expense 2,847 3,370
Federal Deposit Insurance
Corporation premiums 2,123 1,940
Other expenses 8,697 8,410
----- -----
Total non-interest expense 45,736 44,333
------ ------
Earnings before income taxes 9,512 8,872
Federal and state income tax
(benefit) expense (81) (602)
--- ----
Net earnings $9,593 9,474
====== =====
Basic earnings per share 0.13 0.15
Diluted earnings per share 0.13 0.15
Dividends declared per share 0.13 0.13
Return on average assets
(annualized) 0.58% 0.62%
Return on average equity
(annualized) 4.47% 5.43%
Average outstanding shares -basic 71,915,073 61,619,803
Average outstanding shares -
diluted 71,915,073 61,619,803
(Unaudited -$ in thousands Twelve months ended
except per share data) December 31,
-------------------------- -------------------
2010 2009
---- ----
Interest income:
Residential real estate loans 45,401 54,498
Commercial loans 143,861 151,580
Consumer and other loans 42,130 44,844
Investment securities 57,010 51,572
------
Total interest income 288,402 302,494
------- -------
Interest expense:
Deposits 35,598 38,429
Federal Home Loan Bank advances 9,523 7,952
Securities sold under agreements
to repurchase 1,607 2,007
Subordinated debentures 6,622 6,818
Other borrowed funds 284 1,961
---
Total interest expense 53,634 57,167
------ ------
Net interest income 234,768 - 245,327
Provision for loan losses 84,693 124,618
------ -------
Net interest income after
provision for loan losses 150,075 120,709
------- -------
Non-interest income:
Service charges and other fees 43,040 40,465
Miscellaneous loan fees and
charges 4,906 5,406
Gain on sale of loans 27,233 26,923
Gain on sale of investments 4,822 5,995
Other income 7,545 7,685
-----
Total non-interest income 87,546 86,474
------ ------
Non-interest expense:
Compensation, employee benefits
and related expense 87,728 84,965
Occupancy and equipment expense 24,261 23,471
Advertising and promotions 6,831 6,477
Outsourced data processing
expense 3,057 3,031
Core deposit intangibles
amortization 3,180 3,116
Other real estate owned expense 22,193 9,092
Federal Deposit Insurance
Corporation premiums 9,121 8,639
Other expenses 31,577 30,027
------
Total non-interest expense 187,948 168,818
------- -------
Earnings before income taxes 49,673 38,365
Federal and state income tax
(benefit) expense 7,343 3,991
-----
Net earnings 42,330 34,374
====== ======
Basic earnings per share 0.61 0.56
Diluted earnings per share 0.61 0.56
Dividends declared per share 0.52 0.52
Return on average assets
(annualized) 0.67% 0.60%
Return on average equity
(annualized) 5.18% 4.97%
Average outstanding shares -
basic 69,657,980 61,529,944
Average outstanding shares -
diluted 69,660,345 61,531,640
Glacier Bancorp, Inc.
Average Balance Sheet
For the Three months
ended 12/31/10
--------------
(Unaudited -$ in
thousands) Interest Average
Average and Yield/
Assets: Balance Dividends Rate
------- --------- ----
Residential real estate
loans $763,474 $10,780 5.65%
Commercial loans 2,445,281 34,452 5.59%
Consumer and other loans 665,105 10,171 6.07%
------- ------
Total loans 3,873,860 55,403 5.67%
Tax-exempt investment
securities (1) 495,415 5,941 4.80%
Other investment
securities (2) 1,692,494 7,739 1.83%
--------- -----
Total Earning Assets 6,061,769 69,083 4.52%
------
Goodwill and core deposit
intangible 157,446
Non-earning assets 317,743
-------
Total assets $6,536,958
==========
Liabilities:
NOW accounts $734,571 $516 0.28%
Savings accounts 360,645 157 0.17%
Money market accounts 874,934 1,313 0.60%
Certificates accounts 1,088,345 5,021 1.83%
Wholesale deposits (3) 533,626 896 0.67%
FHLB advances 793,666 2,440 1.22%
Repurchase agreements
and other borrowed funds 387,571 2,077 2.13%
------- -----
Total interest bearing
liabilities 4,773,358 12,420 1.03%
------
Non-interest bearing
deposits 882,367
Other liabilities 30,479
------
Total Liabilities 5,686,204
---------
Stockholders' equity:
Common stock 719
Paid-in capital 643,758
Retained earnings 197,013
Accumulated other
comprehensive income 9,264
-----
Total stockholders' equity 850,754
-------
Total liabilities and
stockholders' equity $6,536,958
==========
Net interest income $56,663
=======
Net interest spread 3.49%
Net interest margin 3.71%
Net interest margin (tax-
equivalent) 3.91%
----
For the Year ended
12/31/10
--------
(Unaudited -$ in
thousands) Interest Average
Average and Yield/
Assets: Balance Dividends Rate
------- --------- ----
Residential real estate
loans $772,074 $45,401 5.88%
Commercial loans 2,542,186 143,861 5.66%
Consumer and other loans 684,752 42,130 6.15%
------- ------
Total loans 3,999,012 231,392 5.79%
Tax-exempt investment
securities (1) 479,640 23,351 4.87%
Other investment
securities (2) 1,378,468 33,659 2.44%
--------- ------
Total Earning Assets 5,857,120 288,402 4.92%
-------
Goodwill and core deposit
intangible 158,636
Non-earning assets 291,284
-------
Total assets $6,307,040
==========
Liabilities:
NOW accounts $718,175 $2,545 0.35%
Savings accounts 345,297 725 0.21%
Money market accounts 848,495 6,975 0.82%
Certificates accounts 1,082,428 21,016 1.94%
Wholesale deposits (3) 533,476 4,337 0.81%
FHLB advances 691,969 9,523 1.38%
Repurchase agreements
and other borrowed funds 407,516 8,513 2.09%
------- -----
Total interest bearing
liabilities 4,627,356 53,634 1.16%
------
Non-interest bearing
deposits 830,513
Other liabilities 31,675
------
Total Liabilities 5,489,544
---------
Stockholders' equity:
Common stock 697
Paid-in capital 611,577
Retained earnings 196,785
Accumulated other
comprehensive income 8,437
-----
Total stockholders' equity 817,496
-------
Total liabilities and
stockholders' equity $6,307,040
==========
Net interest income $234,768
========
Net interest spread 3.76%
Net interest margin 4.01%
Net interest margin (tax-
equivalent) 4.21%
----
(1) Excludes tax effect of $2,630,000 and $10,338,000 on tax-exempt
investment security income for the quarter and year ended December
31, 2010 respectively.
(2) Excludes tax effect of $396,000 and $1,503,000 on investment
security tax credits for the quarter and year ended December 31,
2010 respectively.
(3) Wholesale deposits include brokered deposits classified as NOW,
money market demand, and CD's.
Glacier Bancorp, Inc.
Loan Portfolio - by Regulatory Classification
(Unaudited - $ in thousands)
Loans Receivable, Gross by Bank
-------------------------------
Balance Balance Balance
12/31/2010 9/30/2010 12/31/2009
---------- --------- ----------
Glacier $866,097 891,508 942,254
Mountain West 821,135 884,648 957,451
First
Security 571,925 575,980 566,713
Western 305,977 322,452 323,375
1st Bank 266,505 275,650 296,913
Valley 183,003 194,705 187,283
Big Sky 249,593 259,474 270,970
First
National 143,224 151,134 153,058
Citizens 168,972 173,941 166,049
First Bank -
MT 109,310 114,665 117,017
San Juans 143,574 143,616 149,162
Eliminations (3,813) (3,813) -
Total $3,825,502 3,983,960 4,130,245
========== ========= =========
% Change % Change
from from
9/30/2010 12/31/2009
--------- ----------
Glacier -3% -8%
Mountain West -7% -14%
First
Security -1% 1%
Western -5% -5%
1st Bank -3% -10%
Valley -6% -2%
Big Sky -4% -8%
First
National -5% -6%
Citizens -3% 2%
First Bank -
MT -5% -7%
San Juans 0% -4%
Eliminations 0% n/m
Total -4% -7%
Land, Lot and Other
Construction Loans by Bank
--------------------------
Balance Balance Balance
12/31/2010 9/30/2010 12/31/2009
---------- --------- ----------
Glacier $148,319 150,167 165,734
Mountain West 147,991 173,543 217,078
First Security 72,409 74,168 71,404
Western 29,535 30,552 32,045
1st Bank 29,714 29,520 36,888
Valley 12,816 13,423 14,704
Big Sky 53,648 56,440 71,365
First National 12,341 12,630 10,247
Citizens 12,187 12,622 13,263
First Bank - MT 830 799 1,010
San Juans 30,187 31,389 39,621
Total $549,977 585,253 673,359
======== ======= =======
% Change % Change
from from
9/30/2010 12/31/2009
--------- ----------
Glacier -1% -11%
Mountain West -15% -32%
First Security -2% 1%
Western -3% -8%
1st Bank 1% -19%
Valley -5% -13%
Big Sky -5% -25%
First National -2% 20%
Citizens -3% -8%
First Bank - MT 4% -18%
San Juans -4% -24%
Total -6% -18%
Land, Lot and Other Construction
Loans by Bank, by Type at 12/31/10
--------------------------------------
Consumer
Land Land or Unimproved
Development Lot Land
----------- --- ----
Glacier $62,719 27,686 40,032
Mountain West 32,250 61,338 12,225
First Security 26,258 6,666 19,327
Western 14,815 5,234 3,929
1st Bank 7,486 9,920 3,494
Valley 2,142 4,925 1,063
Big Sky 19,714 16,115 8,807
First National 1,879 3,906 1,634
Citizens 2,690 2,155 2,438
First Bank - MT - 83 747
San Juans 3,431 15,881 2,163
Total $173,384 153,909 95,859
======== ======= ======
Land, Lot and Other Construction
Loans by Bank, by Type at 12/31/10
------------------------------------------
Developed Commercial
Lots for Developed Other
Operative
Builders Lot Construction
---------- --- ------------
Glacier 8,901 6,686 2,295
Mountain West 18,488 8,609 15,081
First Security 4,510 497 15,151
Western 589 1,815 3,153
1st Bank 281 2,046 6,487
Valley 55 3,381 1,250
Big Sky 651 2,354 6,007
First National 407 2,138 2,377
Citizens 50 682 4,172
First Bank - MT - - -
San Juans - 7,628 1,084
Total 33,932 35,836 57,057
====== ====== ======
Residential Construction Loans
by Bank, by Type
------------------------------
Balance Balance Balance
12/31/2010 9/30/2010 12/31/2009
---------- --------- ----------
Glacier $34,526 42,975 57,183
Mountain West 21,375 22,829 57,437
First Security 10,123 12,375 19,664
Western 1,350 1,294 2,245
1st Bank 6,611 10,037 17,633
Valley 4,950 5,550 5,170
Big Sky 11,004 13,724 20,679
First National 1,958 2,105 2,612
Citizens 9,441 11,175 13,211
First Bank - MT 502 135 234
San Juans 7,018 8,421 13,811
Total $108,858 130,620 209,879
======== ======= =======
% Change % Change
from from
9/30/2010 12/31/2009
--------- ----------
Glacier -20% -40%
Mountain West -6% -63%
First Security -18% -49%
Western 4% -40%
1st Bank -34% -63%
Valley -11% -4%
Big Sky -20% -47%
First National -7% -25%
Citizens -16% -29%
First Bank - MT 272% 115%
San Juans -17% -49%
Total -17% -48%
Custom &
Owner Pre-Sold
Occupied & Spec
12/31/2010 12/31/2010
---------- ----------
Glacier $6,993 27,533
Mountain West 7,718 13,657
First Security 3,890 6,233
Western 622 728
1st Bank 4,342 2,269
Valley 3,708 1,242
Big Sky 459 10,545
First National 1,474 484
Citizens 4,425 5,016
First Bank - MT 502 -
San Juans 6,896 122
Total $41,029 67,829
======= ======
n/m - not measurable
Glacier Bancorp, Inc.
Loan Portfolio - by Regulatory Classification (continued)
(Unaudited - $ in thousands)
Single Family Residential Loans by Bank, by Type
------------------------------------------------
Balance Balance Balance
12/31/2010 9/30/2010 12/31/2009
---------- --------- ----------
Glacier $187,683 193,110 204,789
Mountain West 282,429 297,676 278,158
First Security 92,011 93,629 82,141
Western 42,070 56,914 50,502
1st Bank 59,337 59,102 65,555
Valley 60,085 66,344 66,644
Big Sky 32,496 34,895 33,308
First National 13,948 15,169 19,239
Citizens 19,885 25,940 20,937
First Bank -MT 8,618 9,314 10,003
San Juans 29,124 29,164 22,811
------ ------ ------
Total $827,686 881,257 854,087
======== ======= =======
% Change % Change
from from
9/30/2010 12/31/2009
--------- ----------
Glacier -3% -8%
Mountain West -5% 2%
First Security -2% 12%
Western -26% -17%
1st Bank 0% -9%
Valley -9% -10%
Big Sky -7% -2%
First National -8% -28%
Citizens -23% -5%
First Bank -MT -7% -14%
San Juans 0% 28%
Total -6% -3%
1st Junior
Lien Lien
12/31/2010 12/31/2010
---------- ----------
Glacier 166,370 21,313
Mountain West 243,890 38,539
First Security 78,208 13,803
Western 39,909 2,161
1st Bank 54,686 4,651
Valley 49,773 10,312
Big Sky 29,239 3,257
First National 10,678 3,270
Citizens 18,254 1,631
First Bank -MT 7,509 1,109
San Juans 27,260 1,864
------ -----
Total 725,776 101,910
======= =======
Commercial Real Estate Loans
by Bank, by Type
----------------------------
Balance Balance Balance
12/31/2010 9/30/2010 12/31/2009
---------- --------- ----------
Glacier $224,215 228,090 232,552
Mountain West 206,732 221,761 230,383
First Security 227,662 225,806 224,425
Western 103,443 104,052 107,173
1st Bank 58,353 61,460 64,008
Valley 50,325 51,985 48,144
Big Sky 88,135 90,337 82,303
First National 27,609 28,336 26,703
Citizens 61,737 60,070 55,660
First Bank - MT 17,492 17,095 18,827
San Juans 50,066 49,530 47,838
Total $1,115,769 1,138,522 1,138,016
========== ========= =========
%
Change % Change
from from
9/30/2010 12/31/2009
--------- ----------
Glacier -2% -4%
Mountain West -7% -10%
First Security 1% 1%
Western -1% -3%
1st Bank -5% -9%
Valley -3% 5%
Big Sky -2% 7%
First National -3% 3%
Citizens 3% 11%
First Bank - MT 2% -7%
San Juans 1% 5%
Total -2% -2%
Non-
Owner Owner
Occupied Occupied
12/31/2010 12/31/2010
---------- ----------
Glacier 117,371 106,844
Mountain West 132,051 74,681
First Security 152,844 74,818
Western 56,767 46,676
1st Bank 43,725 14,628
Valley 31,779 18,546
Big Sky 53,420 34,715
First National 21,967 5,642
Citizens 44,914 16,823
First Bank - MT 11,085 6,407
San Juans 29,519 20,547
Total 695,442 420,327
======= =======
Consumer Loans by Bank, by
Type
--------------------------
Balance Balance Balance
12/31/2010 9/30/2010 12/31/2009
---------- --------- ----------
Glacier $150,082 155,150 162,723
Mountain West 70,304 71,818 71,702
First Security 71,677 74,765 78,345
Western 43,081 46,772 48,946
1st Bank 40,021 41,937 46,455
Valley 23,745 25,204 24,625
Big Sky 27,733 27,462 28,903
First National 24,217 26,416 27,320
Citizens 29,040 30,566 29,253
First Bank - MT 8,005 7,937 7,650
San Juans 14,848 13,900 14,189
Total $502,753 521,927 540,111
======== ======= =======
%
Change % Change
from from
9/30/2010 12/31/2009
--------- ----------
Glacier -3% -8%
Mountain West -2% -2%
First Security -4% -9%
Western -8% -12%
1st Bank -5% -14%
Valley -6% -4%
Big Sky 1% -4%
First National -8% -11%
Citizens -5% -1%
First Bank - MT 1% 5%
San Juans 7% 5%
Total -4% -7%
Home
Equity Other
Line of
Credit Consumer
12/31/2010 12/31/2010
---------- ----------
Glacier 136,626 13,456
Mountain West 61,935 8,369
First Security 46,368 25,309
Western 30,382 12,699
1st Bank 16,566 23,455
Valley 14,780 8,965
Big Sky 24,605 3,128
First National 14,948 9,269
Citizens 23,002 6,038
First Bank - MT 3,940 4,065
San Juans 13,683 1,165
Total 386,835 115,918
======= =======
Glacier Bancorp, Inc.
Credit Quality Summary
(Unaudited - $ in thousands)
Non-Performing Assets, by
Loan Type
-------------------------
Balance Balance Balance
12/31/2010 9/30/2010 12/31/2009
---------- --------- ----------
Custom & owner occupied
construction $2,575 4,126 3,281
Pre-sold & spec
construction 16,071 19,628 29,580
Land development 83,989 81,505 88,488
Consumer land or lots 12,543 11,488 10,120
Unimproved land 44,116 40,082 32,453
Developed lots for
operative builders 7,429 8,721 11,565
Commercial lots 3,110 3,219 909
Other construction 3,837 3,485 -
Commercial real estate 36,978 30,107 32,300
Commercial & industrial 13,127 14,005 12,271
Agriculture loans 5,253 5,645 283
1-4 Family 34,791 31,782 30,868
Home equity line of credits 4,805 5,446 6,234
Consumer 446 746 1,042
Other 1,451 1,485 1,744
----- ----- -----
Total $270,521 261,470 261,138
======== ======= =======
Non- Accruing Other
Loans 90 Days Real
Accruing or Estate
Loans More Overdue Owned
12/31/2010 12/31/2010 12/31/2010
---------- ---------- ----------
Custom & owner occupied
construction 1,908 - 667
Pre-sold & spec
construction 10,577 - 5,494
Land development 55,938 - 28,051
Consumer land or lots 8,150 40 4,353
Unimproved land 28,958 - 15,158
Developed lots for
operative builders 5,378 - 2,051
Commercial lots 2,933 - 177
Other construction 3,837 - -
Commercial real estate 26,522 731 9,725
Commercial & industrial 10,997 1,906 224
Agriculture loans 4,723 125 405
1-4 Family 28,479 878 5,434
Home equity line of credits 3,371 788 646
Consumer 150 24 272
Other 584 39 828
--- --- ---
Total 192,505 4,531 73,485
======= ===== ======
Accruing 30-89 Days
Delinquent Loans and
Non-Performing Assets, by
Bank
-------------------------
Balance Balance Balance
12/31/2010 9/30/2010 12/31/2009
---------- --------- ----------
Glacier $75,869 77,144 97,666
Mountain West 83,872 71,780 109,187
First Security 59,770 55,627 59,351
Western 11,237 10,293 9,315
1st Bank 16,686 18,166 21,117
Valley 1,900 1,916 2,542
Big Sky 21,739 23,882 31,711
First National 9,901 10,519 9,290
Citizens 8,000 7,989 5,340
First Bank - MT 553 669 800
San Juans 6,549 5,252 2,310
GORE 19,942 19,156 -
------
Total $316,018 302,393 348,629
======== ======= =======
Non-Accrual &
Accruing Accruing Loans Other
Real
30-89 Days 90 Days or Estate
Overdue More Overdue Owned
12/31/2010 12/31/2010 12/31/2010
---------- ---------- ----------
Glacier 10,188 57,659 8,022
Mountain West 9,830 65,170 8,872
First Security 11,493 35,782 12,495
Western 1,917 6,209 3,111
1st Bank 4,349 3,468 8,869
Valley 723 1,049 128
Big Sky 3,143 10,068 8,528
First National 694 9,188 19
Citizens 1,216 4,936 1,848
First Bank - MT 299 254 -
San Juans 1,645 3,253 1,651
GORE - - 19,942
Total 45,497 197,036 73,485
====== ======= ======
Allowance for Loan and Lease
Losses
----------------------------
Balance Balance Balance
12/31/2010 9/30/2010 12/31/2009
---------- --------- ----------
Glacier $34,701 34,936 38,978
Mountain West 35,064 28,963 37,551
First Security 19,046 19,007 18,242
Western 7,606 8,719 8,762
1st Bank 10,467 11,224 10,895
Valley 4,651 4,752 4,367
Big Sky 9,963 10,450 10,536
First National 2,527 2,498 1,679
Citizens 5,502 6,000 4,865
First Bank - MT 3,020 3,070 2,904
San Juans 4,560 4,638 4,148
Total $137,107 134,257 142,927
======== ======= =======
Provision for
Provision the Year-to-
for Date ALLL
Year-to- as a
Date Ended 12/31/10 Percent
Ended Over Net of Loans
12/31/2010 Charge-Offs 12/31/2010
---------- ----------- ----------
Glacier 20,050 0.8 4.01%
Mountain West 45,000 0.9 4.27%
First Security 8,100 1.1 3.33%
Western 950 0.5 2.49%
1st Bank 2,150 0.8 3.93%
Valley 500 2.3 2.54%
Big Sky 3,475 0.9 3.99%
First National 1,453 2.4 1.76%
Citizens 2,000 1.5 3.26%
First Bank - MT 265 1.8 2.76%
San Juans 750 2.2 3.18%
Total 84,693 0.9 3.58%
======
Glacier Bancorp, Inc.
Credit Quality Summary (continued)
(Unaudited - $ in thousands)
Net Charge-Offs, Year-to-Date Period Ending,
By Bank
--------------------------------------------
12/31/2010 9/30/2010 12/31/2009
---------- --------- ----------
Glacier $24,327 22,342 12,012
Mountain
West 47,487 31,888 28,931
First
Security 7,296 4,335 3,745
Western 2,106 743 1,500
1st Bank 2,578 1,821 5,917
Valley 216 115 414
Big Sky 4,048 2,986 4,896
First
National 605 634 4
Citizens 1,363 765 656
First Bank -
MT 149 99 26
San Juans 338 260 329
Total $90,513 65,988 58,430
======= ====== ======
Charge-Offs Recoveries
12/31/2010 12/31/2010
---------- ----------
Glacier 24,783 456
Mountain
West 48,221 734
First
Security 8,509 1,213
Western 2,202 96
1st Bank 3,176 598
Valley 229 13
Big Sky 4,216 168
First
National 681 76
Citizens 1,379 16
First Bank -
MT 165 16
San Juans 389 51
Total 93,950 3,437
====== =====
Net Charge-Offs (Recoveries), Year-to-Date
Period Ending, By Loan Type
---------------------------
12/31/2010 9/30/2010 12/31/2009
---------- --------- ----------
Residential
construction $7,147 6,248 13,455
Land, lot and other
construction 51,580 37,456 28,310
Commercial real estate 10,181 7,965 1,187
Commercial and
industrial 5,612 4,010 3,610
1-4 Family 9,897 6,771 7,242
Home equity lines of
credit 4,496 2,987 2,357
Consumer 951 583 1,895
Other 649 (32) 374
---
Total $90,513 65,988 58,430
======= ====== ======
Charge-Offs Recoveries
12/31/2010 12/31/2010
---------- ----------
Residential
construction 7,432 285
Land, lot and other
construction 52,671 1,091
Commercial real estate 10,404 223
Commercial and
industrial 6,490 878
1-4 Family 10,414 517
Home equity lines of
credit 4,535 39
Consumer 1,312 361
Other 692 43
Total 93,950 3,437
====== =====
SOURCE Glacier Bancorp, Inc.
