Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended December 31, 2023
4th Quarter 2023 Highlights:· Net income was $54.3 million for the current quarter, an increase of $1.9 million, or 4 percent, from the prior quarter net income of $52.4 million. Net income for the current quarter decreased $25.4 million, or 32 percent, from the prior year fourth quarter net income of $79.7 million, which was primarily driven by an increase in cost of funds.
· Interest income of $273 million in the current quarter increased $8.6 million, or 3 percent, over the prior quarter interest income of $265 million. Interest income in the current quarter increased $48.4 million, or 22 percent, over the prior year fourth quarter.
· The loan portfolio of $16.198 billion increased $63.0 million, or 2 percent annualized, during the current quarter.
· The loan yield for the current quarter of 5.34 percent, increased 7 basis points, compared to 5.27 percent in the prior quarter and increased 51 basis points from the prior year fourth quarter loan yield of 4.83 percent.
· Non-performing assets of $25.6 million at December 31, 2023 decreased $16.7 million, or 39 percent, over the prior quarter and decreased $7.1 million, or 22 percent, over the prior year end.
· Stockholders’ equity of $3.020 billion increased $146 million, or 5 percent, during the current quarter and increased $177 million, or 6 percent, over the prior year end.
· The Company declared a quarterly dividend of $0.33 per share. The Company has declared 155 consecutive quarterly dividends and has increased the dividend 49 times.Year 2023 Highlights
· Net income for 2023 was $223 million, a decrease of $80.3 million, or 26 percent, from $303 million for the prior year. The decrease was primarily attributable to a $96.7 million decrease in net interest income driven by a significant increase in the cost of funds.
· Interest income for the current year was $1.018 billion, an increase of $188 million, or 23 percent over the prior year interest income of $830 million.
· The loan portfolio of $16.198 billion increased $951 million, or 6 percent, during the current year.
· The loan yield was 5.19 percent for the current year, an increase of 53 basis points from the prior year loan yield of 4.66 percent.
· Although the banking industry experienced a significant outflow of deposits, the Company’s core deposits and retail repurchase agreements decreased $108 million, or 50 basis points, from the prior year end.
· Dividends declared in 2023 were $1.32 per share.
· The Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank, a leading eastern Washington community bank headquartered in Spokane with total assets of $728 million as of December 31, 2023. The acquisition is expected to be completed January 31, 2024.Financial Summary
At or for the Three Months ended At or for the Year ended
(Dollars in thousands, except per share and market data) Dec 31,
2023 Sep 30,
2023 Jun 30,
2023 Mar 31,
2023 Dec 31,
2022 Dec 31,
2023 Dec 31,
2022
Operating results
Net income $ 54,316 52,445 54,955 61,211 79,677 222,927 303,202
Basic earnings per share $ 0.49 0.47 0.50 0.55 0.72 2.01 2.74
Diluted earnings per share $ 0.49 0.47 0.50 0.55 0.72 2.01 2.74
Dividends declared per share $ 0.33 0.33 0.33 0.33 0.33 1.32 1.32
Market value per share
Closing $ 41.32 28.50 31.17 42.01 49.42 41.32 49.42
High $ 44.06 36.45 42.21 50.03 59.70 50.03 60.69
Low $ 27.36 26.84 26.77 37.07 48.64 26.77 44.43
Selected ratios and other data
Number of common stock shares outstanding 110,888,942 110,879,365 110,873,887 110,868,713 110,777,780 110,888,942 110,777,780
Average outstanding shares - basic 110,884,496 110,877,534 110,870,964 110,824,648 110,773,084 110,864,501 110,757,473
Average outstanding shares - diluted 110,907,640 110,886,959 110,875,535 110,881,708 110,872,127 110,890,447 110,827,933
Return on average assets (annualized) 0.77 % 0.75 % 0.81 % 0.93 % 1.19 % 0.81 % 1.15 %
Return on average equity (annualized) 7.40 % 7.12 % 7.52 % 8.54 % 11.35 % 7.64 % 10.43 %
Efficiency ratio 65.20 % 63.31 % 62.73 % 60.39 % 53.18 % 62.85 % 54.64 %
Dividend payout 67.35 % 70.21 % 66.00 % 60.00 % 45.83 % 65.67 % 48.18 %
Loan to deposit ratio 81.36 % 79.25 % 79.92 % 77.09 % 74.05 % 81.36 % 74.05 %
Number of full time equivalent employees 3,294 3,314 3,369 3,390 3,390 3,294 3,390
Number of locations 221 221 222 222 221 221 221
Number of ATMs 275 274 274 263 265 275 265
KALISPELL, Mont., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $54.3 million for the current quarter, a decrease of $25.4 million, or 32 percent, from the $79.7 million of net income for the prior year fourth quarter. Diluted earnings per share for the current quarter was $0.49 per share, a decrease of 32 percent from the prior year fourth quarter diluted earnings per share of $0.72. The decrease in net income compared to the prior year fourth quarter was primarily due to the increase in funding costs, which outpaced the increase in interest income. Included in the current quarter non-interest expense was $6.0 million related to the Federal Deposit Insurance Corporation (“FDIC”) special assessment pursuant to a systemic risk determination. “The Glacier team wrapped up a strong fourth quarter and 2023 despite industry turmoil throughout the year. We are pleased to see many positive business trends developing in all our Divisions and we are well positioned to grow in 2024 and beyond” said Randy Chesler, President and Chief Executive Officer.
Net income for 2023 was $223 million, a decrease of $80.3 million, or 26 percent, from $303 million for the prior year, which was primarily driven by the increase in cost of funds outpacing the increase in interest income. Diluted earnings per share for 2023 was $2.01 per share, a decrease of 27 percent from the prior year diluted earnings per share of $2.74.
The Company’s previously announced agreement to acquire Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, “Wheatland”), headquartered in Spokane, Washington, has received all required regulatory and shareholder approvals and is expected to be completed January 31, 2024. Wheatland has 14 branches in eastern Washington with total assets of $728 million, total loans of $469 million and total deposits of $623 million as of December 31, 2023.
Asset Summary
$ Change from
(Dollars in thousands) Dec 31,
2023 Sep 30,
2023 Dec 31,
2022 Sep 30,
2023 Dec 31,
2022
Cash and cash equivalents $ 1,354,342 1,672,094 401,995 (317,752 ) 952,347
Debt securities, available-for-sale 4,785,719 4,741,738 5,307,307 43,981 (521,588 )
Debt securities, held-to-maturity 3,502,411 3,553,805 3,715,052 (51,394 ) (212,641 )
Total debt securities 8,288,130 8,295,543 9,022,359 (7,413 ) (734,229 )
Loans receivable
Residential real estate 1,704,544 1,653,777 1,446,008 50,767 258,536
Commercial real estate 10,303,306 10,292,446 9,797,047 10,860 506,259
Other commercial 2,901,863 2,916,785 2,799,668 (14,922 ) 102,195
Home equity 888,013 869,963 822,232 18,050 65,781
Other consumer 400,356 402,075 381,857 (1,719 ) 18,499
Loans receivable 16,198,082 16,135,046 15,246,812 63,036 951,270
Allowance for credit losses (192,757 ) (192,271 ) (182,283 ) (486 ) (10,474 )
Loans receivable, net 16,005,325 15,942,775 15,064,529 62,550 940,796
Other assets 2,094,832 2,153,149 2,146,492 (58,317 ) (51,660 )
Total assets $ 27,742,629 28,063,561 26,635,375 (320,932 ) 1,107,254 The Company continued to maintain a strong cash position of $1.354 billion at December 31, 2023 which was an increase of $952 million over the prior year end. Total debt securities of $8.288 billion at December 31, 2023 decreased $7.4 million during the current quarter and decreased $734 million, or 8 percent, from the prior year end. Debt securities represented 30 percent of total assets at December 31, 2023, compared to 34 percent at December 31, 2022
The loan portfolio of $16.198 billion increased $63.0 million, or 2 percent annualized, during the current quarter with the largest dollar increase in residential real estate, which increased $50.8 million, or 3 percent. The loan portfolio increased $951 million, or 6 percent, from the prior year end with the largest dollar increase in commercial real estate loans, which increased $506 million, or 5 percent.
Credit Quality Summary
At or for the
Year ended At or for the
Nine Months
ended At or for the
Year ended
(Dollars in thousands) Dec 31,
2023 Sep 30,
2023 Dec 31,
2022
Allowance for credit losses
Balance at beginning of period $ 182,283 182,283 172,665
Provision for credit losses 20,790 16,609 17,433
Charge-offs (15,095 ) (10,284 ) (14,970 )
Recoveries 4,779 3,663 7,155
Balance at end of period $ 192,757 192,271 182,283
Provision for credit losses
Loan portfolio $ 20,790 16,609 17,433
Unfunded loan commitments (5,995 ) (4,827 ) 2,530
Total provision for credit losses $ 14,795 11,782 19,963
Other real estate owned $ 1,032 — —
Other foreclosed assets 471 48 32
Accruing loans 90 days or more past due 3,312 3,855 1,559
Non-accrual loans 20,816 38,380 31,151
Total non-performing assets $ 25,631 42,283 32,742
Non-performing assets as a percentage of subsidiary assets 0.09 % 0.15 % 0.12 %
Allowance for credit losses as a percentage of non-performing loans 799 % 455 % 557 %
Allowance for credit losses as a percentage of total loans 1.19 % 1.19 % 1.20 %
Net charge-offs as a percentage of total loans 0.06 % 0.04 % 0.05 %
Accruing loans 30-89 days past due $ 49,967 15,253 20,967
U.S. government guarantees included in non-performing assets $ 1,503 1,057 2,312 Non-performing assets of $25.6 million at December 31, 2023 decreased $16.7 million, or 39 percent, over the prior quarter and increased $7.1 million, or 22 percent, over the prior year end. Non-performing assets as a percentage of subsidiary assets at December 31, 2023 was 0.09 percent compared to 0.15 percent in the prior quarter and 0.12 percent in the prior year fourth quarter.
Early stage delinquencies (accruing loans 30-89 days past due) of $50.0 million at December 31, 2023 increased $34.7 million from the prior quarter and increased $29.0 million from prior year end. The current quarter increase included a $13 million loan that was brought current shortly after quarter end. The remaining early stage delinquencies was driven by seasonality and a few isolated loans. Early stage delinquencies as a percentage of loans at December 31, 2023 were 0.31 percent compared to 0.09 percent for the prior quarter end and 0.14 percent for the prior year end.
The current quarter credit loss expense of $3.0 million included $4.2 million of credit loss expense from loans and $1.2 million of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at December 31, 2023 was 1.19 percent compared to 1.20 percent in the prior year fourth quarter.
Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio
(Dollars in thousands) Provision for
Credit Losses
Loans Net Charge-Offs
(Recoveries) ACL
as a Percent
of Loans Accruing
Loans 30-89
Days Past Due
as a Percent of
Loans Non-Performing
Assets to
Total Subsidiary
Assets
Fourth quarter 2023 $ 4,181 $ 3,695 1.19 % 0.31 % 0.09 %
Third quarter 2023 5,095 2,209 1.19 % 0.09 % 0.15 %
Second quarter 2023 5,254 2,473 1.19 % 0.16 % 0.12 %
First quarter 2023 6,260 1,939 1.20 % 0.16 % 0.12 %
Fourth quarter 2022 6,060 1,968 1.20 % 0.14 % 0.12 %
Third quarter 2022 8,382 3,154 1.20 % 0.07 % 0.13 %
Second quarter 2022 (1,353 ) 1,843 1.20 % 0.12 % 0.16 %
First quarter 2022 4,344 850 1.28 % 0.12 % 0.24 %Net charge-offs for the current quarter were $3.7 million compared to $2.2 million in the prior quarter and $2.0 million for the prior year fourth quarter. Net charge-offs of $3.7 million included $2.0 million in deposit overdraft net charge-offs and $1.7 million of net loan charge-offs.
The current quarter provision for credit loss expense for loans was $4.2 million, which was a decrease of $914 thousand from the prior quarter and a $1.9 million decrease from the prior year fourth quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will continue to determine the level of the provision for credit losses for loans.
Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on regulatory classification is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.
Liability Summary
$ Change from
(Dollars in thousands) Dec 31,
2023 Sep 30,
2023 Dec 31,
2022 Sep 30,
2023 Dec 31,
2022
Deposits
Non-interest bearing deposits $ 6,022,980 6,465,353 7,690,751 (442,373 ) (1,667,771 )
NOW and DDA accounts 5,321,257 5,253,367 5,330,614 67,890 (9,357 )
Savings accounts 2,833,887 2,872,362 3,200,321 (38,475 ) (366,434 )
Money market deposit accounts 2,831,624 2,994,631 3,472,281 (163,007 ) (640,657 )
Certificate accounts 2,915,393 2,742,017 880,589 173,376 2,034,804
Core deposits, total 19,925,141 20,327,730 20,574,556 (402,589 ) (649,415 )
Wholesale deposits 4,026 67,434 31,999 (63,408 ) (27,973 )
Deposits, total 19,929,167 20,395,164 20,606,555 (465,997 ) (677,388 )
Repurchase agreements 1,486,850 1,499,696 945,916 (12,846 ) 540,934
Deposits and repurchase agreements, total 21,416,017 21,894,860 21,552,471 (478,843 ) (136,454 )
Federal Home Loan Bank advances — — 1,800,000 — (1,800,000 )
FRB Bank Term Funding 2,740,000 2,740,000 — — 2,740,000
Other borrowed funds 81,695 73,752 77,293 7,943 4,402
Subordinated debentures 132,943 132,903 132,782 40 161
Other liabilities 351,693 347,452 229,524 4,241 122,169
Total liabilities $ 24,722,348 25,188,967 23,792,070 (466,619 ) 930,278 During the current year, the Company experienced unprecedented fluctuations in the deposit balances and higher deposit rates, primarily due to the volatile interest rate environment. As a result of the Company’s focus on diversified deposits and repurchase agreements, core deposits and retail repurchase agreements decreased $108 million, or 50 basis points, from the prior year end. Total core deposits of $19.9 billion at the current quarter end decreased $403 million, or 2 percent, during the current quarter. Non-interest bearing deposits represented 30 percent of total core deposits at December 31, 2023 compared to 37 percent at December 31, 2022.
The Company’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. The Company has available liquidity of $15.0 billion including cash, borrowing capacity from the FHLB and Federal Reserve facilities, unpledged securities, brokered deposits, and other sources.
Stockholders’ Equity Summary
$ Change from
(Dollars in thousands, except per share data) Dec 31,
2023 Sep 30,
2023 Dec 31,
2022 Sep 30,
2023 Dec 31,
2022
Common equity $ 3,394,394 3,374,961 3,312,097 19,433 82,297
Accumulated other comprehensive loss (374,113 ) (500,367 ) (468,792 ) 126,254 94,679
Total stockholders’ equity 3,020,281 2,874,594 2,843,305 145,687 176,976
Goodwill and core deposit intangible, net (1,017,263 ) (1,019,690 ) (1,026,994 ) 2,427 9,731
Tangible stockholders’ equity $ 2,003,018 1,854,904 1,816,311 148,114 186,707
Stockholders’ equity to total assets 10.89 % 10.24 % 10.67 %
Tangible stockholders’ equity to total tangible assets 7.49 % 6.86 % 7.09 %
Book value per common share $ 27.24 25.93 25.67 1.31 1.57
Tangible book value per common share $ 18.06 16.73 16.40 1.33 1.66Tangible stockholders’ equity of $2.003 billion at December 31, 2023 increased $148 million, or 8 percent, compared to the prior quarter and was primarily due to a decrease in net unrealized losses (after-tax) on available-for-sale (“AFS”) debt securities during the current quarter. Tangible stockholders’ equity increased $187 million, or 10 percent, from December 31, 2022, which was primarily due to earnings retention and a decrease in net unrealized losses (after-tax) on AFS debt securities. Tangible book value per common share of $18.06 at the current quarter end increased $1.33 per share, or 8 percent, from the prior quarter. The tangible book value per common share increased $1.66 per share, or 10 percent, from the prior year end.
Cash Dividends
On November 15, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The current quarter dividend of $0.33 per share was consistent with the dividend declared in the prior quarter and the prior year fourth quarter. The dividend was payable December 14, 2023 to shareholders of record on December 5, 2023. The dividend was the Company’s 155th consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.
*Operating Results for Three Months Ended **December 31, 2023** *
*Compared to **September 30, 2023**, **June 30, 2023**, **March 31, 2023**, and **December 31, 2022*
Income Summary
Three Months ended
(Dollars in thousands) Dec 31,
2023 Sep 30,
2023 Jun 30,
2023 Mar 31,
2023 Dec 31,
2022
Net interest income
Interest income $ 273,496 264,906 247,365 231,888 225,085
Interest expense 107,040 97,852 75,385 45,696 21,026
Total net interest income 166,456 167,054 171,980 186,192 204,059
Non-interest income
Service charges and other fees 19,115 19,304 18,967 17,771 18,734
Miscellaneous loan fees and charges 4,484 4,322 4,162 3,967 3,905
Gain on sale of loans 2,228 4,046 3,528 2,400 2,175
Gain (loss) on sale of securities 1,712 (65 ) (23 ) (114 ) 519
Other income 3,326 2,633 2,445 3,871 3,150
Total non-interest income 30,865 30,240 29,079 27,895 28,483
Total income $ 197,321 197,294 201,059 214,087 232,542
Net interest margin (tax-equivalent) 2.56 % 2.58 % 2.74 % 3.08 % 3.30 % $ Change from
(Dollars in thousands) Sep 30,
2023 Jun 30,
2023 Mar 31,
2023 Dec 31,
2022
Net interest income
Interest income $ 8,590 26,131 41,608 48,411
Interest expense 9,188 31,655 61,344 86,014
Total net interest income (598 ) (5,524 ) (19,736 ) (37,603 )
Non-interest income
Service charges and other fees (189 ) 148 1,344 381
Miscellaneous loan fees and charges 162 322 517 579
Gain on sale of loans (1,818 ) (1,300 ) (172 ) 53
Gain (loss) on sale of securities 1,777 1,735 1,826 1,193
Other income 693 881 (545 ) 176
Total non-interest income 625 1,786 2,970 2,382
Total income $ 27 (3,738 ) (16,766 ) (35,221 )Net Interest Income
The current quarter interest income of $273 million increased $8.6 million, or 3 percent, over the prior quarter and was driven primarily by the increase in the loan yields and an increase in average balances of the loan portfolio and interest-bearing cash. The current quarter interest income increased $48.4 million, or 22 percent, over the prior year fourth quarter and was principally due to loan growth and increased loan yields. The loan yield of 5.34 percent in the current quarter increased 7 basis points from the prior quarter loan yield of 5.27 percent and increased 51 basis points from the prior year fourth quarter loan yield of 4.83 percent.
The current quarter interest expense of $107 million increased $9.2 million, or 9 percent, over the prior quarter and increased $86.0 million, or 409 percent, over the prior year fourth quarter primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 1.24 percent for the current quarter compared to 1.03 percent in the prior quarter and 0.08 percent for the prior year fourth quarter. The total cost of funding (including non-interest bearing deposits) was 1.72 percent in the current quarter compared to 1.58 percent in the prior quarter and 0.35 percent in the prior year fourth quarter, which was the result of the increased deposit and borrowing rates.
The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.56 percent compared to 2.58 percent in the prior quarter and 3.30 percent in the prior year fourth quarter. Although the net interest margin has been negatively impacted by the increase in interest rates during the current year, the Company continued to experience a slower pace in the decline in the net interest margin during the current quarter. The current quarter decrease in net interest margin was 2 basis points compared to a decrease of 16 basis points during the prior quarter.
Non-interest Income
Non-interest income for the current quarter totaled $30.9 million, which was an increase of $625 thousand, or 2 percent, over the prior quarter. Gain on the sale of residential loans of $2.2 million for the current quarter decreased $1.8 million, or 45 percent, compared to the prior quarter and increased $53 thousand, or 2 percent, from the prior year fourth quarter. Included in the current quarter gain on sale of securities was $1.7 million of gain on the sale of all of the Company’s Visa class B shares.
Non-interest Expense Summary
Three Months ended
(Dollars in thousands) Dec 31,
2023 Sep 30,
2023 Jun 30,
2023 Mar 31,
2023 Dec 31,
2022
Compensation and employee benefits $ 71,420 77,387 78,764 81,477 79,814
Occupancy and equipment 10,533 10,553 10,827 11,665 10,734
Advertising and promotions 3,410 4,052 3,733 4,235 3,558
Data processing 8,511 8,730 8,402 8,109 8,079
Other real estate owned and foreclosed assets 78 15 14 12 5
Regulatory assessments and insurance 12,435 6,060 5,314 4,903 3,425
Core deposit intangibles amortization 2,427 2,428 2,427 2,449 2,664
Other expenses 23,382 20,351 21,123 22,132 20,700
Total non-interest expense $ 132,196 129,576 130,604 134,982 128,979 $ Change from
(Dollars in thousands) Sep 30,
2023 Jun 30,
2023 Mar 31,
2023 Dec 31,
2022
Compensation and employee benefits $ (5,967 ) (7,344 ) (10,057 ) (8,394 )
Occupancy and equipment (20 ) (294 ) (1,132 ) (201 )
Advertising and promotions (642 ) (323 ) (825 ) (148 )
Data processing (219 ) 109 402 432
Other real estate owned and foreclosed assets 63 64 66 73
Regulatory assessments and insurance 6,375 7,121 7,532 9,010
Core deposit intangibles amortization (1 ) — (22 ) (237 )
Other expenses 3,031 2,259 1,250 2,682
Total non-interest expense $ 2,620 1,592 (2,786 ) 3,217 Total non-interest expense of $132 million for the current quarter increased $2.6 million, or 2 percent, over the prior quarter and increased $3.2 million, or 2 percent, over the prior year fourth quarter. Compensation and employee benefits expense of $71.4 million for the current quarter decreased $6.0 million, or 8 percent, from the prior quarter and decreased $8.4 million, or 11 percent, over the prior year fourth quarter, which was driven primarily by a decrease in performance-related compensation including in real estate commissions. The Company has also benefited during the year from increased operating efficiencies and a decrease in staffing. Included in the current quarter regulatory assessment and insurance expense was a $6.0 million expense related to the FDIC special assessment pursuant to a systemic risk determination. Excluding the FDIC special assessment, the $6.4 million regulatory assessments and insurance expense in the current quarter increased $3.0 million, or 88 percent, over the prior year fourth quarter and was primarily due to the FDIC uniformly increasing all depository institutions premiums at the beginning of the current year. Other expense of $23.4 million, increased $3.0 million, or 15 percent, from the prior quarter and was driven by several miscellaneous category increases. Other expense for the current quarter increased $2.7 million, or 13 percent, from the prior year fourth quarter and was primarily attributable to a $2.5 million gain on the sale of a former branch building in the prior year fourth quarter. “The reduction in non-interest expense in the current quarter was primarily due to the reduction in accrued performance-based compensation. In addition, the Company continues to improve operating efficiencies while monitoring staffing levels,” said Ron Copher, Chief Financial Officer.
Federal and State Income Tax Expense
Tax expense during the fourth quarter of 2023 was $7.8 million, a decrease of $3.9 million, or 34 percent, compared to the prior quarter and a decrease of $10.0 million, or 56 percent, from the prior year fourth quarter. The effective tax rate in the current quarter was 12.6 percent compared to 18.3 percent in the prior quarter and 18.2 percent in the prior year fourth quarter. The current quarter decrease in tax expense and the resulting effective tax rate was the result of a combination of increased federal tax credits and a decrease in the blended state tax rate.
Efficiency Ratio
The efficiency ratio was 65.2 percent in the current quarter compared to 63.31 percent in the prior quarter and 53.18 percent in the prior year fourth quarter. The increase from the prior quarter was principally driven by the FDIC special assessment and the decrease in the gain on the sale of residential loans. The increase from the prior year fourth quarter was primarily attributable to the increase in interest expense, which outpaced the increase in interest income.
*Operating Results for Year Ended December 31, 2023*
*Compared to December 31, 2022*
Income Summary
Year ended
(Dollars in thousands) Dec 31,
2023 Dec 31,
2022 $ Change % Change
Net interest income
Interest income $ 1,017,655 $ 829,640 $ 188,015 23%
Interest expense 325,973 41,261 284,712 690%
Total net interest income 691,682 788,379 (96,697 ) (12)%
Non-interest income
Service charges and other fees 75,157 72,124 3,033 4%
Miscellaneous loan fees and charges 16,935 15,350 1,585 10%
Gain on sale of loans 12,202 20,032 (7,830 ) (39)%
Gain on sale of securities 1,510 620 890 144%
Other income 12,275 12,606 (331 ) (3)%
Total non-interest income 118,079 120,732 (2,653 ) (2)%
Total Income $ 809,761 $ 909,111 $ (99,350 ) (11)%
Net interest margin (tax-equivalent) 2.73 % 3.27 % Net Interest Income
Net-interest income of $692 million for 2023 decreased $96.7 million, or 12 percent, over 2022 and was primarily driven by increased interest expense. Interest income of $1.018 billion for 2023 increased $188 million, or 23 percent, from the prior year and was primarily attributable to the increase in the loan portfolio and an increase in loan yields. The loan yield was 5.19 percent for 2023, an increase of 53 basis points from the prior year loan yield of 4.66 percent.
Interest expense of $326 million for 2023 increased $285 million, or 690 percent, over the same period in the prior year and was the result of increased borrowings and higher interest rates on borrowings and deposits. Core deposit cost (including non-interest bearing deposits) was 0.77 percent for 2023 compared to 0.07 percent for the prior year. The total funding cost (including non-interest bearing deposits) for 2023 was 1.35 percent, which was an increase of 117 basis points over the prior year funding cost of 0.18 percent.
The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 2023 was 2.73 percent, a 54 basis points decrease from the net interest margin of 3.27 percent for the prior year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the Paycheck Protection Program loans, was 2.71 percent for 2023, which was a 49 basis points decrease from the core margin of 3.20 percent in the same period of the prior year.
Non-interest Income
Non-interest income of $118 million for 2023 decreased $2.7 million, or 2 percent, over the same period last year and was primarily due to the decrease in gain on sale of residential loans, which was partially offset by the increase in service charges and other fees. Miscellaneous loan fees of $16.9 million increased $1.6 million for 2023, or 10 percent, which was primarily driven by increased credit card interchange fees due to increased activity. Gain on sale of residential loans of $12.2 million in 2023 decreased by $7.8 million, or 39 percent, over the prior year, primarily as result of the reduction in residential purchase and refinance activity as mortgage rates significantly increased during 2023.
Non-interest Expense Summary
Year ended
(Dollars in thousands) Dec 31,
2023 Dec 31,
2022 $ Change % Change
Compensation and employee benefits $ 309,048 $ 319,303 $ (10,255) (3)%
Occupancy and equipment 43,578 43,261 317 1%
Advertising and promotions 15,430 14,324 1,106 8%
Data processing 33,752 30,823 2,929 10%
Other real estate owned and foreclosed assets 119 77 42 55%
Regulatory assessments and insurance 28,712 12,904 15,808 123%
Core deposit intangibles amortization 9,731 10,658 (927) (9)%
Other expenses 86,988 87,518 (530) (1)%
Total non-interest expense $ 527,358 $ 518,868 $ 8,490 2%Total non-interest expense of $527 million for 2023 increased $8.5 million, or 2 percent, over the same period in the prior year. Compensation and employee benefits expense of $309 million in 2023 decreased $10.3 million, or 3 percent, over the prior year and was driven by a decrease in accrued performance-related compensation and a decrease in real estate commissions. Regulatory assessments and insurance of $28.7 million for 2023 increased $15.8 million, or 123 percent, over the prior year and was primarily due to the $6.0 million FDIC special assessment and the FDIC uniformly increasing all depository institutions premiums beginning in 2023. Other expense of $87.0 million for 2023 decreased $530 thousand, or 1 percent, from the prior year and included changes in several miscellaneous categories. Acquisition-related expenses were $1.3 million in 2023 compared to $10.0 million in 2022.
Provision for Credit Losses
The provision for credit loss expense was $14.8 million for 2023, a decrease of $5.2 million, or 26 percent, over the same period in the prior year. The provision for credit loss expense for 2023 included provision for credit loss expense of $20.8 million on the loan portfolio and credit loss benefit of $6.0 million on the unfunded loan commitments. Net charge-offs during 2023 were $10.3 million compared to $7.8 million during 2022.
Federal and State Income Tax Expense
Tax expense of $44.7 million for 2023 decreased $22.4 million, or 33 percent, over the prior year. The effective tax rate for 2023 was 16.7 percent compared to 18.1 percent for the prior year. The decrease in tax expense and the resulting effective tax rate was the result of a combination of a decrease in the pre-tax income, an increase in federal tax credits and a decrease in the blended state tax rate.
Efficiency Ratio
The efficiency ratio was 62.85 percent for 2023 compared to 54.64 percent for 2022. The increase from the prior year was primarily attributable to the increase in interest expense in the current year that outpaced the increase in interest income.
Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’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 other comparable words or phrases of a future or forward-looking nature. 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 based on assumptions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those made in this news release:
· risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
· changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
· legislative or regulatory changes, including increased FDIC insurance rates and assessments or increased banking and consumer protection regulations, that may adversely affect the Company’s business;
· risks related to overall economic conditions, including the impact on the economy of a rising interest rate environment, inflationary pressures, and geopolitical instability, including the wars in Ukraine and the Middle East;
· risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;
· costs or difficulties related to the completion and integration of pending or future acquisitions;
· impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
· reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
· deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company's ability to obtain and maintain customers;
· changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
· risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;
· risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
· material failure, potential interruption or breach in security of the Company’s systems or changes in technological which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
· risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
· success in managing risks involved in the foregoing; and
· effects of any reputational damage to the Company resulting from any of the foregoing.
The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.
Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, January 26, 2024. Please note that our conference call host no longer offers a general dial-in number. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BI418b19026885468085e5f5ca09a5f67e. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/2w5869im. If you are unable to participate during the live webcast, the call will be archived on our website, www.glacierbancorp.com.
About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. (NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions located across its eight state Western U.S. footprint: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), North Cascades Bank (Chelan, WA), The Foothills Bank (Yuma, AZ), Valley Bank of Helena (Helena, MT), and Western Security Bank (Billings, MT).
*Glacier Bancorp, Inc.*
*Unaudited Condensed Consolidated Statements of Financial Condition*
(Dollars in thousands, except per share data) Dec 31,
2023 Sep 30,
2023 Dec 31,
2022
*Assets*
Cash on hand and in banks $ 246,525 264,067 300,194
Interest bearing cash deposits 1,107,817 1,408,027 101,801
Cash and cash equivalents 1,354,342 1,672,094 401,995
Debt securities, available-for-sale 4,785,719 4,741,738 5,307,307
Debt securities, held-to-maturity 3,502,411 3,553,805 3,715,052
Total debt securities 8,288,130 8,295,543 9,022,359
Loans held for sale, at fair value 15,691 29,027 12,314
Loans receivable 16,198,082 16,135,046 15,246,812
Allowance for credit losses (192,757 ) (192,271 ) (182,283 )
Loans receivable, net 16,005,325 15,942,775 15,064,529
Premises and equipment, net 421,791 415,343 398,100
Other real estate owned and foreclosed assets 1,503 48 32
Accrued interest receivable 94,526 104,476 83,538
Deferred tax asset 159,070 203,745 193,187
Core deposit intangible, net 31,870 34,297 41,601
Goodwill 985,393 985,393 985,393
Non-marketable equity securities 12,755 11,330 82,015
Bank-owned life insurance 171,101 170,175 169,068
Other assets 201,132 199,315 181,244
Total assets $ 27,742,629 28,063,561 26,635,375
*Liabilities*
Non-interest bearing deposits $ 6,022,980 6,465,353 7,690,751
Interest bearing deposits 13,906,187 13,929,811 12,915,804
Securities sold under agreements to repurchase 1,486,850 1,499,696 945,916
FHLB advances — — 1,800,000
FRB Bank Term Funding 2,740,000 2,740,000 —
Other borrowed funds 81,695 73,752 77,293
Subordinated debentures 132,943 132,903 132,782
Accrued interest payable 125,907 91,874 4,331
Other liabilities 225,786 255,578 225,193
Total liabilities 24,722,348 25,188,967 23,792,070
*Commitments and Contingent Liabilities*
*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, 234,000,000 shares authorized 1,109 1,109 1,108
Paid-in capital 2,350,104 2,348,305 2,344,005
Retained earnings - substantially restricted 1,043,181 1,025,547 966,984
Accumulated other comprehensive loss (374,113 ) (500,367 ) (468,792 )
Total stockholders’ equity 3,020,281 2,874,594 2,843,305
Total liabilities and stockholders’ equity $ 27,742,629 28,063,561 26,635,375
*
*
*Glacier Bancorp, Inc.*
*Unaudited Condensed Consolidated Statements of Operations*
Three Months ended Year ended
(Dollars in thousands, except per share data) Dec 31,
2023 Sep 30,
2023 Dec 31,
2022 Dec 31,
2023 Dec 31,
2022
*Interest Income*
Investment securities $ 57,233 53,397 43,818 201,930 169,035
Residential real estate loans 19,820 18,594 14,964 71,328 57,243
Commercial loans 175,957 173,437 150,462 669,663 548,969
Consumer and other loans 20,486 19,478 15,841 74,734 54,393
Total interest income 273,496 264,906 225,085 1,017,655 829,640
*Interest Expense*
Deposits 63,484 54,697 4,642 162,426 14,526
Securities sold under agreements to repurchase 12,229 10,972 1,765 36,414 3,200
Federal Home Loan Bank advances — — 12,689 26,910 17,317
FRB Bank Term Funding 30,228 30,229 — 93,388 —
Other borrowed funds (372 ) 489 464 1,056 1,329
Subordinated debentures 1,471 1,465 1,466 5,779 4,889
Total interest expense 107,040 97,852 21,026 325,973 41,261
*Net Interest Income* 166,456 167,054 204,059 691,682 788,379
Provision for credit losses 3,013 3,539 6,124 14,795 19,963
Net interest income after provision for credit losses 163,443 163,515 197,935 676,887 768,416
*Non-Interest Income*
Service charges and other fees 19,115 19,304 18,734 75,157 72,124
Miscellaneous loan fees and charges 4,484 4,322 3,905 16,935 15,350
Gain on sale of loans 2,228 4,046 2,175 12,202 20,032
Gain (loss) on sale of securities 1,712 (65 ) 519 1,510 620
Other income 3,326 2,633 3,150 12,275 12,606
Total non-interest income 30,865 30,240 28,483 118,079 120,732
*Non-Interest Expense*
Compensation and employee benefits 71,420 77,387 79,814 309,048 319,303
Occupancy and equipment 10,533 10,553 10,734 43,578 43,261
Advertising and promotions 3,410 4,052 3,558 15,430 14,324
Data processing 8,511 8,730 8,079 33,752 30,823
Other real estate owned and foreclosed assets 78 15 5 119 77
Regulatory assessments and insurance 12,435 6,060 3,425 28,712 12,904
Core deposit intangibles amortization 2,427 2,428 2,664 9,731 10,658
Other expenses 23,382 20,351 20,700 86,988 87,518
Total non-interest expense 132,196 129,576 128,979 527,358 518,868
*Income Before Income Taxes* 62,112 64,179 97,439 267,608 370,280
Federal and state income tax expense 7,796 11,734 17,762 44,681 67,078
*Net Income* $ 54,316 52,445 79,677 222,927 303,202
*
*
*Glacier Bancorp, Inc.*
*Average Balance Sheets*
Three Months ended December 31, 2023 September 30, 2023
(Dollars in thousands) Average
Balance Interest &
Dividends Average
Yield/
Rate Average
Balance Interest &
Dividends Average
Yield/
Rate
*Assets*
Residential real estate loans $ 1,700,598 $ 19,820 4.66% $ 1,649,947 $ 18,594 4.51%
Commercial loans ^1 13,196,412 177,397 5.33% 13,120,479 174,822 5.29%
Consumer and other loans 1,279,626 20,486 6.35% 1,263,775 19,478 6.11%
Total loans ^2 16,176,636 217,703 5.34% 16,034,201 212,894 5.27%
Tax-exempt debt securities ^3 1,725,858 14,738 3.42% 1,732,227 14,486 3.34%
Taxable debt securities ^4 8,466,825 44,665 2.11% 8,485,157 41,052 1.94%
Total earning assets 26,369,319 277,106 4.17% 26,251,585 268,432 4.06%
Goodwill and intangibles 1,018,423 1,020,868
Non-earning assets 487,979 528,145
Total assets $ 27,875,721 $ 27,800,598
*Liabilities*
Non-interest bearing deposits $ 6,262,801 $ — —% $ 6,461,350 $ — —%
NOW and DDA accounts 5,245,602 14,751 1.12% 5,231,741 12,906 0.98%
Savings accounts 2,843,788 4,848 0.68% 2,840,620 3,492 0.49%
Money market deposit accounts 2,911,054 13,600 1.85% 3,039,177 12,646 1.65%
Certificate accounts 2,872,192 29,563 4.08% 2,462,266 23,151 3.73%
Total core deposits 20,135,437 62,762 1.24% 20,035,154 52,195 1.03%
Wholesale deposits ^5 53,841 722 5.32% 188,523 2,502 5.27%
Repurchase agreements 1,488,419 12,229 3.26% 1,401,765 10,972 3.11%
FHLB advances — — —% — — —%
FRB Bank Term Funding 2,740,000 30,228 4.38% 2,740,000 30,229 4.38%
Subordinated debentures and other borrowed funds 211,570 1,099 2.06% 208,336 1,954 3.72%
Total funding liabilities 24,629,267 107,040 1.72% 24,573,778 97,852 1.58%
Other liabilities 332,740 302,564
Total liabilities 24,962,007 24,876,342
*Stockholders’ Equity*
Common stock 1,109 1,109
Paid-in capital 2,349,177 2,347,323
Retained earnings 1,034,258 1,035,276
Accumulated other comprehensive loss (470,830 ) (459,452 )
Total stockholders’ equity 2,913,714 2,924,256
Total liabilities and stockholders’ equity $ 27,875,721 $ 27,800,598
Net interest income (tax-equivalent) $ 170,066 $ 170,580
Net interest spread (tax-equivalent) 2.45% 2.48%
Net interest margin (tax-equivalent) 2.56% 2.58%
______________________________
^1 Includes tax effect of $1.4 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2023 and September 30, 2023, respectively.
^2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
^3 Includes tax effect of $2.0 million and $1.9 million on tax-exempt debt securities income for the three months ended December 31, 2023 and September 30, 2023, respectively.
^4 Includes tax effect of $215 thousand and $215 thousand on federal income tax credits for the three months ended December 31, 2023 and September 30, 2023, respectively.
^5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
*
*
*Glacier Bancorp, Inc.*
*Average Balance Sheets (continued)*
Three Months ended December 31, 2023 December 31, 2022
(Dollars in thousands) Average
Balance Interest &
Dividends Average
Yield/
Rate Average
Balance Interest &
Dividends Average
Yield/
Rate
*Assets*
Residential real estate loans $ 1,700,598 $ 19,820 4.66% $ 1,424,550 $ 14,964 4.20%
Commercial loans ^1 13,196,412 177,397 5.33% 12,419,414 152,169 4.86%
Consumer and other loans 1,279,626 20,486 6.35% 1,183,727 15,841 5.31%
Total loans ^2 16,176,636 217,703 5.34% 15,027,691 182,974 4.83%
Tax-exempt debt securities ^3 1,725,858 14,738 3.42% 1,960,007 17,877 3.65%
Taxable debt securities ^4 8,466,825 44,665 2.11% 8,200,203 29,717 1.45%
Total earning assets 26,369,319 277,106 4.17% 25,187,901 230,568 3.63%
Goodwill and intangibles 1,018,423 1,028,277
Non-earning assets 487,979 436,260
Total assets $ 27,875,721 $ 26,652,438
*Liabilities*
Non-interest bearing deposits $ 6,262,801 $ — —% $ 8,010,053 $ — —%
NOW and DDA accounts 5,245,602 14,751 1.12% 5,388,062 1,077 0.08%
Savings accounts 2,843,788 4,848 0.68% 3,255,091 355 0.04%
Money market deposit accounts 2,911,054 13,600 1.85% 3,679,866 2,168 0.23%
Certificate accounts 2,872,192 29,563 4.08% 882,490 834 0.37%
Total core deposits 20,135,437 62,762 1.24% 21,215,562 4,434 0.08%
Wholesale deposits ^5 53,841 722 5.32% 22,462 208 3.69%
Repurchase agreements 1,488,419 12,229 3.26% 873,819 1,765 0.80%
FHLB advances — — —% 1,291,087 12,689 3.85%
FRB Bank Term Funding 2,740,000 30,228 4.38% — — —%
Subordinated debentures and other borrowed funds 211,570 1,099 2.06% 211,953 1,930 3.61%
Total funding liabilities 24,629,267 107,040 1.72% 23,614,883 21,026 0.35%
Other liabilities 332,740 252,298
Total liabilities 24,962,007 23,867,181
*Stockholders’ Equity*
Common stock 1,109 1,108
Paid-in capital 2,349,177 2,343,157
Retained earnings 1,034,258 946,195
Accumulated other comprehensive loss (470,830 ) (505,203 )
Total stockholders’ equity 2,913,714 2,785,257
Total liabilities and stockholders’ equity $ 27,875,721 $ 26,652,438
Net interest income (tax-equivalent) $ 170,066 $ 209,542
Net interest spread (tax-equivalent) 2.45% 3.28%
Net interest margin (tax-equivalent) 2.56% 3.30%
______________________________
^1 Includes tax effect of $1.4 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended December 31, 2023 and 2022, respectively.
^2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
^3 Includes tax effect of $2.0 million and $3.6 million on tax-exempt debt securities income for the three months ended December 31, 2023 and 2022, respectively.
^4 Includes tax effect of $215 thousand and $225 thousand on federal income tax credits for the three months ended December 31, 2023 and 2022, respectively.
^5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
*
*
*Glacier Bancorp, Inc.*
*Average Balance Sheets (continued)*
Year ended December 31, 2023 December 31, 2022
(Dollars in thousands) Average
Balance Interest &
Dividends Average
Yield/
Rate Average
Balance Interest &
Dividends Average
Yield/
Rate
*Assets*
Residential real estate loans $ 1,603,600 $ 71,328 4.45% $ 1,284,029 $ 57,243 4.46%
Commercial loans ^1 12,982,708 675,549 5.20% 11,902,971 555,244 4.66%
Consumer and other loans 1,247,114 74,734 5.99% 1,131,000 54,393 4.81%
Total loans ^2 15,833,422 821,611 5.19% 14,318,000 666,880 4.66%
Tax-exempt debt securities ^3 1,740,746 59,716 3.43% 1,916,731 70,438 3.67%
Taxable debt securities ^4 8,297,203 152,003 1.83% 8,546,792 113,952 1.33%
Total earning assets 25,871,371 1,033,330 3.99% 24,781,523 851,270 3.44%
Goodwill and intangibles 1,022,052 1,032,263
Non-earning assets 504,698 603,401
Total assets $ 27,398,121 $ 26,417,187
*Liabilities*
Non-interest bearing deposits $ 6,642,339 $ — —% $ 8,005,821 $ — —%
NOW and DDA accounts 5,167,117 37,357 0.72% 5,387,277 3,439 0.06%
Savings accounts 2,908,584 9,918 0.34% 3,270,799 1,191 0.04%
Money market deposit accounts 3,166,914 42,254 1.33% 3,926,737 6,401 0.16%
Certificate accounts 1,949,206 64,176 3.29% 955,829 3,249 0.34%
Total core deposits 19,834,160 153,705 0.77% 21,546,463 14,280 0.07%
Wholesale deposits ^5 173,231 8,721 5.03% 11,862 246 2.07%
Repurchase agreements 1,301,223 36,414 2.80% 920,955 3,200 0.35%
FHLB advances 551,986 26,910 4.81% 584,562 17,317 2.92%
FRB Bank Term Funding 2,133,658 93,388 4.38% — — —%
Subordinated debentures and other borrowed funds 209,567 6,835 3.26% 196,139 6,218 3.17%
Total funding liabilities 24,203,825 325,973 1.35% 23,259,981 41,261 0.18%
Other liabilities 275,359 249,832
Total liabilities 24,479,184 23,509,813
*Stockholders’ Equity*
Common stock 1,109 1,107
Paid-in capital 2,346,575 2,340,952
Retained earnings 1,021,469 897,587
Accumulated other comprehensive loss (450,216 ) (332,272 )
Total stockholders’ equity 2,918,937 2,907,374
Total liabilities and stockholders’ equity $ 27,398,121 $ 26,417,187
Net interest income (tax-equivalent) $ 707,357 $ 810,009
Net interest spread (tax-equivalent) 2.64% 3.26%
Net interest margin (tax-equivalent) 2.73% 3.27%
______________________________
^1 Includes tax effect of $5.9 million and $6.3 million on tax-exempt municipal loan and lease income for the year ended December 31, 2023 and 2022, respectively.
^2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
^3 Includes tax effect of $8.9 million and $14.5 million on tax-exempt debt securities income for the year ended December 31, 2023 and 2022, respectively.
^4 Includes tax effect of $859 thousand and $901 thousand on federal income tax credits for the year ended December 31, 2023 and 2022, respectively.
^5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
*
*
*Glacier Bancorp, Inc.*
*Loan Portfolio by Regulatory Classification*
Loans Receivable, by Loan Type % Change from
(Dollars in thousands) Dec 31,
2023 Sep 30,
2023 Dec 31,
2022 Sep 30,
2023 Dec 31,
2022
Custom and owner occupied construction $ 290,572 $ 306,106 $ 298,461 (5)% (3)%
Pre-sold and spec construction 236,596 287,048 297,895 (18)% (21)%
*Total residential construction* *527,168* *593,154* *596,356* *(11)**%* *(12)**%*
Land development 232,966 234,995 219,842 (1)% 6%
Consumer land or lots 187,545 184,685 206,604 2% (9)%
Unimproved land 87,739 87,089 104,662 1% (16)%
Developed lots for operative builders 56,142 62,485 60,987 (10)% (8)%
Commercial lots 87,185 84,194 93,952 4% (7)%
Other construction 900,547 982,384 938,406 (8)% (4)%
*Total land, lot, and other construction* *1,552,124* *1,635,832* *1,624,453* *(5)**%* *(4)**%*
Owner occupied 3,035,768 2,976,821 2,833,469 2% 7%
Non-owner occupied 3,742,916 3,765,266 3,531,673 (1)% 6%
*Total commercial real estate* *6,778,684* *6,742,087* *6,365,142* *1**%* *6**%*
*Commercial and industrial* *1,363,479* *1,363,198* *1,377,888* *—**%* *(1)**%*
*Agriculture* *772,458* *785,208* *735,553* *(2)**%* *5**%*
1st lien 2,127,989 2,054,497 1,808,502 4% 18%
Junior lien 47,230 47,490 40,445 (1)% 17%
*Total 1-4 family* *2,175,219* *2,101,987* *1,848,947* *3**%* *18**%*
*Multifamily residential* *796,538* *714,822* *622,185* *11**%* *28**%*
Home equity lines of credit 979,891 950,204 872,899 3% 12%
Other consumer 229,154 233,980 220,035 (2)% 4%
*Total consumer* *1,209,045* *1,184,184* *1,092,934* *2**%* *11**%*
*States and political subdivisions* *834,947* *833,618* *797,656* *—**%* *5**%*
*Other* *204,111* *209,983* *198,012* *(3)**%* *3**%*
Total loans receivable, including loans held for sale 16,213,773 16,164,073 15,259,126 —% 6%
*Less loans held for sale *^*1* *(15,691* *)* *(29,027* *)* *(12,314* *)* *(46)**%* *27**%*
Total loans receivable $ 16,198,082 $ 16,135,046 $ 15,246,812 —% 6%
______________________________
^1 Loans held for sale are primarily 1st lien 1-4 family loans.
*
*
*Glacier Bancorp, Inc.*
*Credit Quality Summary by Regu