GLACIER BANCORP, INC. 
By KALISPELL, Mont., Jan. 28 /PRNewswire-FirstCall/ --
HIGHLIGHTS:
-- Net earnings for the quarter of $9.474 million and year-to-date of
$34.374 million.
-- Diluted earnings per share of $0.15 for the quarter and $0.56
year-to-date.
-- Acquisition of First National Bank & Trust completed as of October 2,
2009 resulting in a one-time $3.5 million bargain purchase gain.
-- Provision for loan losses increased to $37 million for the quarter and
$125 million for the year bringing the allowance for loan losses to 3.46
percent of loans.
-- Net interest income increased $6 million, or 10 percent, from last
year's fourth quarter and increased $33 million, or 15 percent, from
last year's twelve months.
-- Net interest margin (tax equivalent) of 4.82 percent, up 12 basis
points, from last year's twelve months.
-- Efficiency ratio of 51 percent for the year, an improvement of 1
percentage point from last year, excluding non-recurring items.
Results Summary
($ in thousands, except Three months Twelve months
per share data) ended December 31, ended December 31,
------------------ ------------------
(unaudited) (unaudited) (unaudited) (audited)
2009 2008 2009 2008
---- ---- ---- ----
Net earnings $9,474 $17,014 $34,374 $65,657
Diluted earnings per
share $0.15 $0.29 $0.56 $1.19
Return on average
assets (annualized) 0.62% 1.27% 0.60% 1.31%
Return on average
equity (annualized) 5.43% 11.02% 4.97% 11.63%
Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net earnings of $9.474 million for the fourth quarter, a decrease of $7.540 million, or 44 percent, from the $17.014 million net earnings reported for the fourth quarter of 2008. The diluted earnings per share of $0.15 for the quarter represented a 48 percent decrease from the diluted earnings per share of $0.29 for the same quarter of 2008. Annualized return on average assets and return on average equity for the fourth quarter were 0.62 percent and 5.43 percent, which compares with prior year returns for the fourth quarter of 1.27 percent and 11.02 percent, respectively.
Net earnings for the twelve months ended December 31, 2009 were $34.374 million, which is a decrease of $31.283 million, or 48 percent, over the prior year. Diluted earnings per share of $0.56, is a decrease of 53 percent from the $1.19 earned in 2008.
"It was great to finally complete the transaction with First Company and its subsidiary First National Bank & Trust. We are excited to have the Nelson family and all the staff become a part of Glacier Bancorp, Inc. We expect it to be an excellent addition," said Mick Blodnick, President and Chief Executive Officer. "The transaction however did make for a noisy quarter as the bargain purchase and security gains elevated our earnings." Blodnick said. "Although our earnings were much better than the previous quarter, we were still disappointed with the results. One bright spot however continues to be our pre-tax pre-provision earnings."
The results of operations and financial condition include the acquisition of First Company and its subsidiary First National Bank & Trust ("First National") from October 2, 2009. Cash of $621 thousand and 99,995 shares of the Company's common stock were issued in the acquisition. The Company also contributed $15.3 million in capital to the bank. The acquisition resulted in a $3.5 million one-time bargain purchase gain which was based on the estimated fair value of the assets acquired and liabilities assumed. The following table provides information on the fair value of selected classifications of assets and liabilities acquired.
First National
(Unaudited - $ in thousands) Bank & Trust
------------
Total assets $272,280
Investments, including fed funds 60,802
Loans 160,538
Non-interest bearing deposits 39,221
Interest bearing deposits 197,308
Borrowed funds 26,686
As reflected in the following table, total assets at December 31, 2009 were $6.192 billion, which is $638 million, or 11 percent, greater than the total assets of $5.554 billion at December 31, 2008.
December 31, December 31, $ Change From
2009 2008 December 31,
Assets ($ in thousands) (unaudited) (audited) 2008
----------- --------- ----
Cash on hand and in banks $120,731 $125,123 $(4,392)
Investments, interest bearing
deposits, FHLB stock, FRB
stock, and fed funds 1,596,238 1,000,224 596,014
Loans:
Real estate 797,626 838,375 (40,749)
Commercial 2,613,218 2,575,828 37,390
Consumer and other 719,401 715,990 3,411
------- ------- -----
Total loans 4,130,245 4,130,193 52
Allowance for loan and
lease losses (142,927) (76,739) (66,188)
-------- ------- -------
Total loans net of
allowance for
loan and lease losses 3,987,318 4,053,454 (66,136)
--------- --------- -------
Other assets 487,508 375,169 112,339
------- ------- -------
Total Assets $6,191,795 $5,553,970 $637,825
========== ========== ========
At December 31, 2009, total loans were $4.130 billion, an increase of $84 million over total loans of $4.046 billion at September 30, 2009 and an increase of $52 thousand over total loans at December 31, 2008. Real estate loans increased $10 million, or 1 percent, during the fourth quarter. Consumer loans, which are primarily comprised of home equity loans, increased by $19 million, or 3 percent, and commercial loans increased by $55 million, or 2 percent, during the fourth quarter of 2009. Excluding the loan growth of $153 million attributable to the acquisition of First National, the loan portfolio decreased organically 4 percent for 2009 and 2 percent during the fourth quarter, primarily the result of decreased loan demand.
Investment securities, including interest bearing deposits in other financial institutions and federal funds sold, have increased $334 million, or 26 percent, from September 30, 2009 and increased $596 million, or 60 percent, from December 31, 2008. The increase in investments for the fourth quarter includes $112 million for First National. Investment securities represented 26 percent of total assets at December 31, 2009 versus 18 percent of total assets at December 31, 2008. The Company continues to purchase investment securities when loan originations slow.
December 31, December 31, $ Change From
2009 2008 December 31,
Liabilities ($ in thousands) (unaudited) (audited) 2008
----------- --------- ----
Non-interest bearing deposits $810,550 $747,439 $63,111
Interest bearing deposits 3,289,602 2,515,036 774,566
Advances from Federal Home Loan
Bank 790,367 338,456 451,911
Federal Reserve Bank Discount
Window 225,000 914,000 (689,000)
Securities sold under agreements
to repurchase and other borrowed
funds 226,251 196,731 29,520
Other liabilities 39,147 44,331 (5,184)
Subordinated debentures 124,988 121,037 3,951
------- ------- -----
Total liabilities $5,505,905 $4,877,030 $628,875
========== ========== ========
As of December 31, 2009, non-interest bearing deposits increased $9 million, or 1 percent, since September 30, 2009 and increased $63 million, or 8 percent, since December 31, 2008. Interest bearing deposits of $3.290 billion at December 31, 2009 includes wholesale deposits of $351 million, of which $151 million are issued through the Certificate of Deposit Account Registry System. Interest bearing deposits increased $480 million, or 17 percent from September 30, 2009, of which $117 million is from wholesale deposits. Interest bearing deposits increased $775 million, or 31 percent from December 31, 2008, of which $321 million is from wholesale deposits. The increase in non-interest bearing deposits and interest bearing deposits includes $41 million and $206 million, respectively, for First National as of year end. "One of our strategic initiatives in 2009 was to focus on deposit growth and capture additional market share," Blodnick said. "The banks did an excellent job of not only growing their deposits, but at the same time controlling their cost of funds."
Federal Home Loan Bank ("FHLB") advances increased $150 million, or 23 percent, from September 30, 2009 and increased $452 million, or 134 percent, from December 31, 2008. Federal Reserve Bank Discount Window borrowings decreased $145 million, or 39 percent, from September 30, 2009 and decreased $689 million, or 75 percent, from December 31, 2008. Repurchase agreements and other borrowed funds were $226 million at December 31, 2009, an increase of $668 thousand from September 30, 2009 and an increase of $30 million, or 15 percent, from December 31, 2008.
Stockholders' equity December 31, December 31, $ Change From
($ in thousands except per 2009 2008 December 31,
share data) (unaudited) (audited) 2008
----------- --------- ----
Common equity $686,238 $678,183 $8,055
Accumulated other
comprehensive loss (348) (1,243) 895
---- ------ ---
Total stockholders' equity 685,890 676,940 8,950
Goodwill and core deposit
intangible, net (160,196) (159,765) (431)
-------- -------- ----
Tangible stockholders'
equity $525,694 $517,175 $8,519
======== ======== ======
Stockholders' equity to total
assets 11.08% 12.19%
Tangible stockholders' equity
to total tangible assets 8.72% 9.59%
Book value per common share $11.13 $11.04 $0.09
Tangible book value per
common share $8.53 $8.43 $0.10
Market price per share at end
of period $13.72 $19.02 $(5.30)
Total stockholders' equity and book value per share amounts have increased $9 million and $0.09 per share, respectively, from December 31, 2008, the result of earnings retention, exercised stock options, decrease in accumulated comprehensive loss, and stock issued in connection with the First National acquisition. Tangible stockholders' equity has increased $9 million, or 2 percent since December 31, 2008, with tangible stockholders' equity at 8.72 percent of total tangible assets at December 31, 2009, down from 9.59 percent at December 31, 2008. Accumulated other comprehensive loss, representing net unrealized losses (net of tax) on investment securities designated as available for sale, decreased $1 million from December 31, 2008. "Our capital levels continue to be a real strength for the Company," Blodnick said. "Not only are our capital levels well above the regulatory well capitalized requirements, but during a year of crisis for the banking industry we increased our capital while maintaining the level of our dividend and avoiding the need to participate in the Troubled Asset Relief Program (TARP)."
Operating Results for Three Months Ended December 31, 2009
----------------------------------------------------------
Compared to September 30, 2009 and December 31, 2008
----------------------------------------------------
Revenue summary
($ in thousands) Three months ended
------------------
December 31, September 30, December 31,
2009 2009 2008
(unaudited) (unaudited) (unaudited)
----------- ----------- -----------
Net interest income
Interest income $78,112 $74,430 $76,707
Interest
expense 14,273 13,801 18,599
------ ------ ------
Net interest
income 63,839 60,629 58,108
Non-interest
income
Service charges,
loan fees, and
other fees 12,212 12,103 11,522
Gain on sale
of loans 6,089 5,613 3,195
Gain on sale of
investments 3,328 2,667 -
Other income 4,450 1,317 920
----- ----- ---
Total non-
interest
income 26,079 21,700 15,637
------ ------ ------
$89,918 $82,329 $73,745
======= ======= =======
Tax equivalent net
interest margin 4.70% 4.80% 4.81%
==== ==== ====
($ in thousands) $ Change From $ Change From % Change From % Change From
September 30, December 31, September 30, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Net interest income
Interest income $3,682 $1,405 5% 2%
Interest
expense 472 (4,326) 3% -23%
--- ------
Net interest
income 3,210 5,731 5% 10%
Non-interest
income
Service charges,
loan fees, and
other fees 109 690 1% 6%
Gain on sale of
loans 476 2,894 8% 91%
Gain on sale of
investments 661 3,328 25% n/m
Other income 3,133 3,530 238% 384%
----- -----
Total non-
interest
income 4,379 10,442 20% 67%
----- ------
$7,589 $16,173 9% 22%
====== =======
n/m - not measurable
Net Interest Income
Net interest income for the current quarter increased $3.2 million with interest income increasing $3.7 million, or 5 percent, compared to the prior quarter. Net interest income for the year increased $6 million, or 10 percent, with interest expense decreasing $4 million, or 23 percent, over the same period in 2008. The decrease in total interest expense from the prior year fourth quarter is attributable to rate decreases in interest bearing deposits and lower cost borrowings. The current quarter net interest margin as a percentage of earning assets, on a tax equivalent basis, was 4.70 percent which is 10 basis points lower than the 4.80 percent achieved for the prior quarter, and 11 basis points lower than the 4.81 percent result for the fourth quarter of 2008. "Since hitting a high of 4.92 percent in the first quarter of 2009, our net interest margin as expected has experienced some compression the last three quarters," said Ron Copher, Chief Financial Officer. "Higher levels of non accruing loans and the growth of our investment portfolio that carries lower yields were the main reasons for the reduction."
Non-interest Income
Non-interest income for the current quarter totaled $26 million, an increase of $4 million over the prior quarter. Other income had a $3.5 million one-time bargain purchase gain from the acquisition of First National. Excluding the gain, non-interest income increased $897 thousand, or 4 percent, from the prior quarter, and increased $7.0 million, or 45 percent, over the same period in 2008. Fee income increased $109 thousand, or 1 percent, during the quarter, compared to the increase of $690 thousand, or 6 percent, over the same period last year. Gain on sale of loans increased $476 thousand, or 8 percent, for the quarter, and $2.894 million, or 91 percent, over the same period last year, primarily the result of increased residential loans originated and sold in the secondary market during 2009. Net gain on sale of investments was $3.328 million for the fourth quarter 2009 compared to $2.667 million for the previous quarter, a 25 percent increase.
Non-interest expense
summary Three months ended
------------------
($ in thousands) December 31, September 30, December 31,
2009 2009 2008
(unaudited) (unaudited) (unaudited)
----------- ----------- -----------
Compensation
and employee
benefits $21,376 $20,935 $18,775
Occupancy and
equipment
expense 6,130 5,835 5,923
Advertising and
promotion
expense 1,435 1,596 1,675
Outsourced data
processing 850 830 638
Core deposit
intangibles
amortization 822 758 741
Other expenses 13,720 11,942 8,340
------ ------ -----
Total non-
interest
expense $44,333 $41,896 $36,092
======= ======= =======
($ in thousands) $ Change From $ Change From % Change From % Change From
September 30, December 31, September 30, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Compensation
and employee
benefits $441 $2,601 2% 14%
Occupancy and
equipment
expense 295 207 5% 3%
Advertising and
promotion
expense (161) (240) -10% -14%
Outsourced data
processing 20 212 2% 33%
Core deposit
intangibles
amortization 64 81 8% 11%
Other expenses 1,778 5,380 15% 65%
----- -----
Total non-
interest
expense $2,437 $8,241 6% 23%
====== ======
Non-interest Expense
Non-interest expense for the current quarter increased by $2.4 million, or 6 percent from the prior quarter and increased $8.2 million, or 23 percent, from the prior year's fourth quarter. Compensation and employee benefits increased $441 thousand, or 2 percent, from prior quarter and increased $2.6 million, or 14 percent, from prior year's fourth quarter. The current quarter increase in compensation and employee benefits is primarily a result of the acquisition of First National, and the increase over the prior year quarter is due to the acquisitions of First National and Bank of the San Juans which was acquired December 1, 2008. The number of full-time equivalent employees increased from 1,577 to 1,643 during the quarter, and increased from 1,571 since the end of the 2008, primarily the result of First National which has 75 full-time equivalent employees.
Occupancy and equipment expense has increased $295 thousand, or 5 percent, and $207 thousand, or 3 percent, from the prior quarter and the prior year's fourth quarter, respectively, reflecting the acquisitions of First National and Bank of the San Juans. Advertising and promotion expense decreased $161 thousand, or 10 percent, from prior quarter and decreased $240 thousand, or 14 percent, from the same quarter of 2008 as the banks continue to focus on operating cost reduction. The increase of $1.8 million, or 15 percent, in other expense from the prior quarter includes increases of $413 thousand in expenses associated with repossessed assets, $300 thousand in legal and outside service expenses, the majority of which relate to the acquisition of First National, $240 thousand in FDIC insurance expense, $266 thousand in commercial loan expense, and general increases with the acquisition of First National. The increase of $5.4 million, or 65 percent, in other expense from the prior year's fourth quarter is a result of an increase of $1.5 million in FDIC insurance premiums, $1.5 million of loss from sales of other real estate owned, and $1.2 million in expenses associated with repossessed assets.
Efficiency Ratio
Excluding the bargain purchase gain, the efficiency ratio (non-interest expense / net interest income plus non-interest income) was 51 percent for the quarter, compared to 49 percent for the 2008 fourth quarter. The increase in the efficiency ratio from the prior year fourth quarter is the result of the increase in other expenses primarily from FDIC insurance premiums and other real estate owned expenses and losses.
December 31, September 30, December 31,
Credit Quality Summary 2009 2009 2008
($ in thousands) (unaudited) (unaudited) (audited)
----------- ----------- ---------
Allowance for loan and lease
losses -beginning of year $76,739 76,739 54,413
Provision 124,618 87,905 28,480
Acquisition - - 2,625
Charge-offs (60,896) (40,991) (9,839)
Recoveries 2,466 1,677 1,060
----- ----- -----
Allowance for loan and lease
losses -end of period $142,927 125,330 76,739
======== ======= ======
Real estate and other assets
owned $57,320 54,537 11,539
Accruing loans 90 days or
more overdue 5,537 2,891 8,613
Non-accrual loans 198,281 185,577 64,301
------- ------- ------
Total non-performing
assets $261,138 243,005 84,453
Allowance for loan and lease
losses as a percentage of non-
performing assets 55% 52% 91%
Non-performing assets as a
percentage of total bank
assets 4.13% 4.10% 1.46%
Allowance for loan and lease
losses as a percentage of total
loans 3.46% 3.10% 1.86%
Net charge-offs as a
percentage of total loans (1.415%) (0.972%) (0.213%)
Accruing loans 30-89 days or
more overdue $87,491 43,606 54,787
Allowance for Loan and Lease Losses and Non-performing Assets
At December 31, 2009, the allowance for loan and lease losses was $142.9 million, an increase of $66 million, or 86 percent, from a year ago. The allowance was 3.46 percent of total loans outstanding at December 31, 2009, up from 3.10 percent at the prior quarter end, and up from 1.86 percent at December 31, 2008. The allowance was 55 percent of non-performing assets at December 31, 2009, up from 52 percent for the prior quarter end and down from 91 percent a year ago. Non-performing assets as a percentage of total bank assets at December 31, 2009 were at 4.13 percent, up from 4.10 percent as of prior quarter end, and up from 1.46 percent at December 31, 2008. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of additional provision expense.
Credit Quality Trends
(Unaudited - $ in thousands) Accruing
Loans Non-Performing
Provision ALLL 30-89 days Assets to
for Loan Net as a Percent as a Percent of Total Bank
Losses Charge-Offs of Loans Loans Assets
------ ----------- -------- ----- ------
Q4 2009 $36,713 19,116 3.46% 2.12% 4.13%
Q3 2009 47,050 19,094 3.10% 1.08% 4.10%
Q2 2009 25,140 11,543 2.36% 1.52% 3.06%
Q1 2009 15,715 8,677 2.01% 1.60% 1.97%
Q4 2008 12,223 3,742 1.86% 1.33% 1.46%
Q3 2008 8,715 3,889 1.67% 0.65% 1.30%
Q2 2008 5,042 915 1.59% 0.92% 0.58%
Q1 2008 2,500 233 1.54% 0.87% 0.57%
The current quarter provision for loan loss expense was $37 million, a decrease of $10 million from prior quarter and an increase of $24 million from the same quarter in 2008. Net charged-off loans for the current quarter were $19 million compared to $19 million for the prior quarter and $4 million for the same quarter in 2008. For the quarter, the provision covered net charge-offs 1.9 times. "Although we are seeing some signs of credit quality beginning to stabilize, it's still uncertain if the trend will continue," Blodnick said. "Non-performing assets did not expand at the pace of the prior two quarters, however, they did move higher," Blodnick said. "The two loan categories we have experienced most of the increase in non-performing assets this year were spec residential construction and land development. In the quarter we saw a significant decrease in spec construction non-performing assets and only a moderate increase to land development, but as the economy continues to struggle we did see non-performing assets increase in commercial real estate, C & I, and 1-4 family loans."
For additional information regarding credit quality and a breakout of the loan portfolio by regulatory classification see exhibits at the end of this press release.
Operating Results for Twelve Months Ended December 31, 2009 Compared to
December 31, 2008
Revenue summary
($ in thousands) Twelve months ended
-------------------
December 31, December 31, $ Change From % Change From
2009 2008 December 31, December 31,
(unaudited) (audited) 2008 2008
----------- --------- ---- ----
Net interest income
Interest income $302,494 $302,985 $(491) 0%
Interest expense 57,167 90,372 (33,205) -37%
------ ------ -------
Net interest
income 245,327 212,613 32,714 15%
Non-interest income
Service charges,
loan fees,
and other fees 45,871 47,506 (1,635) -3%
Gain on sale of
loans 26,923 14,849 12,074 81%
Gain (loss) on
investments 5,995 (7,345) 13,340 182%
Other income 7,685 6,024 1,661 28%
----- ----- -----
Total non-
interest
income 86,474 61,034 25,440 42%
------ ------ ------
$331,801 $273,647 $58,154 21%
======== ======== =======
Tax equivalent
net interest margin 4.82% 4.70%
==== ====
Net Interest Income
Net interest income for the current year increased $33 million, or 15 percent, over the same period in 2008. Total interest income decreased $491 thousand, or less than 1 percent, while total interest expense decreased $33 million, or 37 percent. The decrease in total interest expense from prior year is primarily attributable to rate decreases in interest bearing deposits and lower cost borrowings. The net interest margin as a percentage of earning assets, on a tax equivalent basis for the year, was 4.82 percent for the current year, an increase of 12 basis points from the 4.70 percent for the same period in 2008.
Non-interest Income
Total non-interest income increased $25 million, or 42 percent over the same period in 2008. Fee income for the year decreased $1.6 million, or 3 percent, as compared to 2008. Gain on sale of loans increased $12 million, or 81 percent, primarily the result of the increase in purchase and refinance residential loans originated and sold in the secondary market. Gain on investments during 2009 of $6.0 million is the net gain from sales of investment securities. Loss from investments during 2008 included a non-recurring $7.6 million other than temporary impairment charge on investments in Freddie Mac preferred stock and Fannie Mae common stock. Other income of $7.7 million includes a $3.5 million one-time bargain purchase gain from the acquisition of First National in 2009. In 2008 other income of $6.0 million included a $1.7 million gain from the sale and relocation of Mountain West Bank's office facility in Ketchum, Idaho.
Non-interest expense
summary Twelve months ended
-------------------
($ in thousands) December 31, December 31, $ Change From % Change From
2009 2008 December 31, December 31,
(unaudited) (audited) 2008 2008
----------- --------- ---- ----
Compensation and
employee benefits $84,965 $82,027 $2,938 4%
Occupancy and
equipment expense 23,471 21,674 1,797 8%
Advertising and
promotion expense 6,477 6,989 (512) -7%
Outsourced data
processing 3,031 2,508 523 21%
Core deposit
intangibles
amortization 3,116 3,051 65 2%
Other expenses 47,758 29,660 18,098 61%
------ ------ ------
Total non-
interest
expense $168,818 $145,909 $22,909 16%
======== ======== =======
Non-interest Expense
Non-interest expense increased by $23 million, or 16 percent, during 2009. Compensation and employee benefit expense increased $2.9 million, or 4 percent, from 2008, due to the increased number of employees from the acquisition of Bank of the San Juans in December 2008 and First National in October 2009. Occupancy and equipment expense increased $2 million, or 8 percent, reflecting the cost of additional locations and facility upgrades. Advertising and promotion expense decreased $512 thousand, or 7 percent, from 2008 reflecting the banks' continuing focus on reducing operating expenses. Outsourced data processing expenses increased $523 thousand, or 21 percent, from 2008 as a result of additional locations and general operating increases. Other expenses increased $18 million, or 61 percent, from 2008. The increase in other expenses includes $7.3 million in FDIC insurance premiums, $5.2 million loss from sales of other real estate owned, $2.7 million expense associated with repossessed assets and $1.4 million in legal and outside firm expense. Of the increase in FDIC insurance premiums, $2.5 million is attributable to the second quarter asset-based special assessment.
Efficiency Ratio
The efficiency ratio (non-interest expense/net interest income plus non-interest income) was 51 percent for 2009 compared favorably to 52 percent for 2008, excluding non-recurring items. "The banks continue to work hard to improve on all their components of efficiency," Copher said. "Non interest expense in particular is an area the banks have specifically focused their attention."
Allowance for Loan and Lease Losses
The provision for loan loss expense was $125 million for 2009, an increase of $96 million, or 338 percent, from 2008. Net charged-off loans during 2009 was $58 million, an increase of $50 million from 2008.
Recent Acquisition
On October 2, 2009, the Company completed the acquisition of First Company and its subsidiary First National Bank & Trust, a community bank based in Powell, Wyoming. First National Bank & Trust provides community banking services from three branch locations in Powell, Cody, and Lovell, Wyoming. As of the acquisition, First National Bank & Trust had total assets of approximately $272 million. First National Bank & Trust will operate as a separate wholly-owned subsidiary of the Company.
Cash Dividend
On December 15, 2009, the board of directors declared a cash dividend of $.13 per share, payable January 14, 2010 to shareholders of record on January 5, 2010. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality and general economic conditions.
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 Montana banks: Glacier Bank of Kalispell, First Security Bank of Missoula, Valley Bank of Helena, Big Sky Western Bank of Bozeman, Western Security Bank of Billings, First Bank of Montana of Lewistown; as well as Mountain West Bank in Idaho, Utah and Washington; 1st Bank in Wyoming and Utah; First National Bank & Trust in Wyoming; Citizens Community Bank in Idaho; and Bank of the San Juans in Colorado.
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 in
credit quality;
-- increased loan delinquency rates;
-- the risks presented by a continued economic slowdown, which could
adversely affect credit quality, loan collateral values, investment
values, liquidity levels, and loan originations;
-- changes in market interest rates, which could adversely affect our net
interest income and profitability;
-- legislative or regulatory changes that adversely affect our business or
our ability to complete pending or prospective future acquisitions;
-- costs or difficulties related to the integration of acquisitions;
-- 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
--------------------------------------------------------
($ in thousands except per share data) December 31, December 31,
---------------------------------- 2009 2008
---- ----
(unaudited) (audited)
Assets:
Cash on hand and in banks $120,731 125,123
Federal funds sold 87,155 6,480
Interest bearing cash deposits 2,689 3,652
Investment securities, available-for-
sale 1,506,394 990,092
Net loans receivable:
Real estate loans 797,626 838,375
Commercial loans 2,613,218 2,575,828
Consumer and other loans 719,401 715,990
------- -------
Total loans, gross 4,130,245 4,130,193
Allowance for loan and lease losses (142,927) (76,739)
-------- -------
Total loans, net 3,987,318 4,053,454
--------- ---------
Premises and equipment, net 140,921 133,949
Real estate and other assets owned, net 57,320 11,539
Accrued interest receivable 29,729 28,777
Deferred tax asset 41,082 14,292
Core deposit intangible, net 13,937 13,013
Goodwill 146,259 146,752
Other assets 58,260 26,847
------ ------
Total assets $6,191,795 5,553,970
========== =========
Liabilities and stockholders' equity:
Non-interest bearing deposits $810,550 747,439
Interest bearing deposits 3,289,602 2,515,036
Advances from Federal Home Loan Bank 790,367 338,456
Securities sold under agreements to
repurchase 212,506 188,363
Federal Reserve Discount Window 225,000 914,000
Other borrowed funds 13,745 8,368
Accrued interest payable 7,928 9,751
Subordinated debentures 124,988 121,037
Other liabilities 31,219 34,580
------ ------
Total liabilities 5,505,905 4,877,030
--------- ---------
Preferred shares, $.01 par value per
share. 1,000,000 shares authorized
None issued or outstanding - -
Common stock, $.01 par value per
share. 117,187,500 shares authorized 616 613
Paid-in capital 497,493 491,794
Retained earnings - substantially
restricted 188,129 185,776
Accumulated other comprehensive loss (348) (1,243)
---- ------
Total stockholders' equity 685,890 676,940
------- -------
Total liabilities and
stockholders' equity $6,191,795 5,553,970
========== =========
Number of shares outstanding 61,619,803 61,331,273
Book value of equity per share 11.13 11.04
Glacier Bancorp, Inc.
Consolidated Condensed Statements of Operations
-----------------------------------------------
($ in thousands
except per Three months ended Twelve months ended
share data) December 31, December 31,
---------------- ------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
(unaudited) (unaudited) (unaudited) (audited)
Interest income:
Real estate loans $12,956 13,374 54,498 51,166
Commercial loans 39,278 40,274 151,580 165,119
Consumer and
other loans 11,213 11,861 44,844 47,725
Investment
securities and
other 14,665 11,198 51,572 38,975
------ ------ ------ ------
Total interest
income 78,112 76,707 302,494 302,985
------ ------ ------- -------
Interest expense:
Deposits 9,630 12,151 38,429 55,012
Federal Home
Loan Bank
advances 2,194 2,478 7,952 15,355
Securities
sold under
agreements to
repurchase 557 756 2,007 3,823
Subordinated
debentures 1,594 1,852 6,818 7,430
Other borrowed
funds 298 1,362 1,961 8,752
--- ----- ----- -----
Total interest
expense 14,273 18,599 57,167 90,372
------ ------ ------ ------
Net interest income 63,839 58,108 245,327 212,613
Provision for
loan losses 36,713 12,223 124,618 28,480
------ ------ ------- ------
Net interest
income after
provision for
loan losses 27,126 45,885 120,709 184,133
------ ------ ------- -------
Non-interest income:
Service
charges and
other fees 10,627 10,195 40,465 41,550
Miscellaneous
loan fees and
charges 1,585 1,327 5,406 5,956
Gain on sale of
loans 6,089 3,195 26,923 14,849
Gain (loss) on
investments 3,328 - 5,995 (7,345)
Other income 4,450 920 7,685 6,024
----- --- ----- -----
Total non-interest
income 26,079 15,637 86,474 61,034
------ ------ ------ ------
Non-interest expense:
Compensation,
employee benefits
and related
expenses 21,376 18,775 84,965 82,027
Occupancy and
equipment
expense 6,130 5,923 23,471 21,674
Advertising and
promotion
expense 1,435 1,675 6,477 6,989
Outsourced data
processing
expense 850 638 3,031 2,508
Core deposit
intangibles
amortization 822 741 3,116 3,051
Other expenses 13,720 8,340 47,758 29,660
------ ----- ------ ------
Total non-
interest
expense 44,333 36,092 168,818 145,909
------ ------ ------- -------
Earnings before
income taxes 8,872 25,430 38,365 99,258
Federal and
state income
tax (benefit)
expense (602) 8,416 3,991 33,601
---- ----- ----- ------
Net earnings $9,474 17,014 34,374 65,657
====== ====== ====== ======
Basic earnings
per share 0.15 0.30 0.56 1.20
Diluted earnings per
share 0.15 0.29 0.56 1.19
Dividends declared per
share 0.13 0.13 0.52 0.52
Return on average assets
(annualized) 0.62% 1.27% 0.60% 1.31%
Return on average
equity (annualized) 5.43% 11.02% 4.97% 11.63%
Average outstanding
shares - basic 61,619,803 57,458,743 61,529,944 54,851,145
Average outstanding
shares - diluted 61,619,803 57,556,778 61,531,640 55,003,814
Glacier Bancorp, Inc.
Average Balance Sheet
For the three months ended
12-31-09
--------------------------
(Unaudited - $ in thousands) Interest Average
Average and Yield/
ASSETS Balance Dividends Rate
------- --------- ----
Real Estate Loans $818,364 $12,956 6.33%
Commercial Loans 2,642,721 39,278 5.90%
Consumer and Other Loans 703,435 11,213 6.32%
------- ------
Total Loans 4,164,520 63,447 6.04%
Tax -Exempt Investment
Securities (1) 460,512 5,504 4.78%
Other Investment Securities 968,255 9,161 3.78%
------- -----
Total Earning Assets 5,593,287 78,112 5.59%
------
Goodwill and Core Deposit
Intangible 160,674
Other Non-Earning Assets 262,851
-------
TOTAL ASSETS $6,016,812
==========
LIABILITIES
AND STOCKHOLDERS' EQUITY
NOW Accounts $685,340 $756 0.44%
Savings Accounts 304,284 167 0.22%
Money Market Accounts 815,166 2,029 0.99%
Certificates of Deposit 1,046,689 5,833 2.21%
Wholesale Deposits 282,904 845 1.18%
FHLB Advances 649,871 2,194 1.34%
Repurchase Agreements
and Other Borrowed Funds 672,681 2,449 1.44%
------- -----
Total Interest Bearing
Liabilities 4,456,935 14,273 1.27%
------
Non-interest Bearing Deposits 817,677
Other Liabilities 49,661
------
Total Liabilities 5,324,273
---------
Common Stock 616
Paid-In Capital 497,230
Retained Earnings 189,613
Accumulated Other
Comprehensive Gain 5,080
-----
Total Stockholders' Equity 692,539
-------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $6,016,812
==========
Net Interest Income $63,839
=======
Net Interest Spread 4.32%
Net Interest Margin 4.53%
Net Interest Margin (Tax Equivalent) 4.70%
Return on Average Assets (annualized) 0.62%
Return on Average Equity
(annualized) 5.43%
----
For the twelve months ended
12-31-09
---------------------------
(Unaudited - $ in thousands) Interest Average
Average and Yield/
ASSETS Balance Dividends Rate
------- --------- ----
Real Estate Loans $829,348 $54,498 6.57%
Commercial Loans 2,608,961 151,580 5.81%
Consumer and Other Loans 702,232 44,844 6.39%
------- ------
Total Loa
