Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended September 30, 2024
3rd Quarter 2024 Highlights:
Diluted earnings per share for the current quarter was $0.45 per share, an increase of 15 percent from the prior quarter diluted earnings per share of $0.39 per share.
Net income was $51.1 million for the current quarter, an increase of $6.3 million, or 14 percent, from the prior quarter net income of $44.7 million and a decrease of $1.4 million, or 3 percent, from the prior year third quarter net income of $52.4 million.
The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.83 percent, an increase of 15 basis points from the prior quarter net interest margin of 2.68 percent.
Net interest income was $180 million for the current quarter, an increase of $13.8 million, or 8 percent, from the prior quarter net interest income of $166 million and an increase of $13.2 million, or 8 percent, from the prior year third quarter net interest income of $167 million.
The loan portfolio of $17.181 billion increased $329 million, or 2 percent, during the current quarter and organically increased $57.6 million, or 1 percent annualized, during the current quarter.
Total core deposits of $20.711 billion, increased $613 million, or 3 percent, during the current quarter and organically increased $216 million, or 4 percent annualized, during the current quarter.
Non-interest bearing deposits of $6.408 billion, increased $314 million, or 5 percent, during the current quarter and organically increased $221 million, or 14 percent annualized, during the current quarter.
The loan yield of 5.69 percent in the current quarter increased 11 basis points from the prior quarter loan yield of 5.58 percent and increased 42 basis points from the prior year third quarter loan yield of 5.27 percent.
The total cost of funding (including non-interest bearing deposits) of 1.79 percent in the current quarter decreased 1 basis point from the prior quarter total cost of funding of 1.80 percent.
Stockholders' equity of $3.245 billion increased $108 million, or 3 percent, during the current quarter and increased $370 million, or 13 percent, over the prior year third quarter.
The Company declared a quarterly dividend of $0.33 per share. The Company has declared 158 consecutive quarterly dividends and has increased the dividend 49 times.
The Company completed the acquisition and core system conversion of six Montana branch locations of Rocky Mountain Bank division ("RMB") of HTLF Bank, a wholly owned subsidiary of Heartland Financial USA, Inc. with total assets of $403 million, total gross loans of $272 million and total deposits of $397 million.
Year-to-date 2024 Highlights:
Net income for the first nine months of 2024 was $128 million, a decrease of $40.2 million, or 24 percent, from the prior year first nine months net income of $169 million.
Interest income for the first nine months of 2024 was $843 million, an increase of $98.7 million, or 13 percent, over the $744 million of interest income for the first nine months of 2023.
The loan portfolio increased $983 million, or 6 percent, during the first nine months of 2024 and organically increased $261 million, or 2 percent, during the first nine months of 2024.
The $2.740 billion of FRB Bank Term Funding ("BTFP") was paid off during the current year through a combination of Federal Home Loan Bank ("FHLB") advances and cash.
Dividends declared in the first nine months of 2024 were $0.99 per share.
The Company completed the acquisition and core system conversion of Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, "Wheatland"), a leading eastern Washington community bank headquartered in Spokane with total assets of $778 million.
Financial Summary
At or for the Three Months ended
At or for the Nine months ended
(Dollars in thousands, except per share and market data)
Sep 30,2024
Jun 30,2024
Mar 31,2024
Sep 30,2023
Sep 30,2024
Sep 30,2023
Operating results
Net income
$
51,055
44,708
32,627
52,445
128,390
168,611
Basic earnings per share
$
0.45
0.39
0.29
0.47
1.14
1.52
Diluted earnings per share
$
0.45
0.39
0.29
0.47
1.13
1.52
Dividends declared per share
$
0.33
0.33
0.33
0.33
0.99
0.99
Market value per share
Closing
$
45.70
37.32
40.28
28.50
45.70
28.50
High
$
47.71
40.18
42.75
36.45
47.71
50.03
Low
$
35.57
34.35
34.74
26.84
34.35
26.77
Selected ratios and other data
Number of common stock shares outstanding
113,394,786
113,394,092
113,388,590
110,879,365
113,394,786
110,879,365
Average outstanding shares - basic
113,394,758
113,390,539
112,492,142
110,877,534
113,093,583
110,857,788
Average outstanding shares - diluted
113,473,107
113,405,491
112,554,402
110,886,959
113,137,861
110,882,718
Return on average assets (annualized)
0.73
%
0.66
%
0.47
%
0.75
%
0.62
%
0.83
%
Return on average equity (annualized)
6.34
%
5.77
%
4.25
%
7.12
%
5.47
%
7.72
%
Efficiency ratio
64.92
%
67.97
%
74.41
%
63.31
%
68.98
%
62.10
%
Loan to deposit ratio
83.16
%
84.03
%
82.04
%
79.25
%
83.16
%
79.25
%
Number of full time equivalent employees
3,434
3,399
3,438
3,314
3,434
3,314
Number of locations
232
231
232
221
232
221
Number of ATMs
279
286
285
274
279
274
KALISPELL, Mont., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE:GBCI) reported net income of $51.1 million for the current quarter, an increase of $6.3 million, or 14 percent from the prior quarter net income of $44.7 million and a decrease of $1.4 million, or 3 percent, from the $52.4 million of net income for the prior year third quarter. Diluted earnings per share for the current quarter was $0.45 per share, an increase of 15 percent from the prior quarter diluted earnings per share of $0.39 per share and a decrease of 4 percent from the prior year third quarter diluted earnings per share of $0.47. The decrease in net income compared to the prior year third quarter was due to the increase in funding costs and the increased costs associated with the acquisitions of Wheatland and RMB over the prior year third quarter. "Our positive business trends through the third quarter. We were very pleased to see solid earnings, margin and deposit growth," said Randy Chesler, President and Chief Executive Officer. "We finalized the acquisition of the Rocky Mountain Bank Montana branches from Heartland and welcome the employees to the Glacier team."
Net income for the nine months ended September 30, 2024 was $128 million, a decrease of $40.2 million, or 24 percent, from the $169 million net income for the first nine months of the prior year. Diluted earnings per share for the first nine months of 2024 was $1.13 per share, a decrease of $0.39 per share from the prior year first nine months diluted earnings per share of $1.52. The decrease in net income for the first nine months of the current year compared to the prior year first nine months was primarily due to the significant increase in funding costs. In addition, the current year-to-date results included increased operating costs and a $9.7 million provision for credit losses associated with the acquisitions of Wheatland and RMB.
On July 19, 2024, the Company completed the acquisition of six RMB branches in Montana. The branches have been combined with Glacier Bank divisions operating in Montana, including First Bank of Montana, First Security Bank of Bozeman, First Security Bank of Missoula, Valley Bank, and Western Security Bank. On January 31, 2024, the Company completed the acquisition of Wheatland, headquartered in Spokane, Washington. Wheatland had 14 branches in eastern Washington and was combined with the North Cascades Bank division under the name Wheatland Bank, division of Glacier Bank. The Wheatland Bank division now operates with a combined 23 branches in Central and Eastern Washington and is a Top 5 community bank by deposit share in Eastern Washington. The Company's results of operations and financial condition include the Wheatland and RMB acquisitions beginning on the acquisition date of each. The following table discloses the preliminary fair value estimates of select classifications of assets and liabilities acquired:
Wheatland
RMB
(Dollars in thousands)
January 31,2024
July 19,2024
Total
Total assets
$
777,659
$
403,052
$
1,180,711
Cash and cash equivalents
12,926
76,781
89,707
Debt securities
187,183
—
187,183
Loans receivable
450,403
271,569
721,972
Non-interest bearing deposits
277,651
93,534
371,185
Interest bearing deposits
339,304
303,156
642,460
Borrowings
58,500
4,305
62,805
Core deposit intangible
16,936
9,794
26,730
Goodwill
38,369
29,794
68,163
Asset Summary
$ Change from
(Dollars in thousands)
Sep 30,2024
Jun 30,2024
Dec 31,2023
Sep 30,2023
Jun 30,2024
Dec 31,2023
Sep 30,2023
Cash and cash equivalents
$
987,833
800,779
1,354,342
1,672,094
187,054
(366,509
)
(684,261
)
Debt securities, available-for-sale
4,436,578
4,499,541
4,785,719
4,741,738
(62,963
)
(349,141
)
(305,160
)
Debt securities, held-to-maturity
3,348,698
3,400,403
3,502,411
3,553,805
(51,705
)
(153,713
)
(205,107
)
Total debt securities
7,785,276
7,899,944
8,288,130
8,295,543
(114,668
)
(502,854
)
(510,267
)
Loans receivable
Residential real estate
1,837,697
1,771,528
1,704,544
1,653,777
66,169
133,153
183,920
Commercial real estate
10,833,841
10,713,964
10,303,306
10,292,446
119,877
530,535
541,395
Other commercial
3,177,051
3,066,028
2,901,863
2,916,785
111,023
275,188
260,266
Home equity
931,440
905,884
888,013
869,963
25,556
43,427
61,477
Other consumer
401,158
394,587
400,356
402,075
6,571
802
(917
)
Loans receivable
17,181,187
16,851,991
16,198,082
16,135,046
329,196
983,105
1,046,141
Allowance for credit losses
(205,170
)
(200,955
)
(192,757
)
(192,271
)
(4,215
)
(12,413
)
(12,899
)
Loans receivable, net
16,976,017
16,651,036
16,005,325
15,942,775
324,981
970,692
1,033,242
Other assets
2,456,643
2,453,581
2,094,832
2,153,149
3,062
361,811
303,494
Total assets
$
28,205,769
27,805,340
27,742,629
28,063,561
400,429
463,140
142,208
Total debt securities of $7.785 billion at September 30, 2024 decreased $115 million, or 1 percent, during the current quarter and decreased $510 million, or 6 percent, from the prior year third quarter. Debt securities represented 28 percent of total assets at September 30, 2024 compared to 30 percent at December 31, 2023 and 30 percent at September 30, 2023.
The loan portfolio of $17.181 billion at September 30, 2024 increased $329 million, or 2 percent, during the current quarter. Excluding the RMB acquisition, the loan portfolio organically increased $57.6 million, or 1 percent annualized, during the current quarter. Excluding the RMB and Wheatland acquisitions, the loan portfolio organically increased $261 million, or 2 percent, during the first nine months of 2024 and increased $324 million, or 2 percent, from the prior year third quarter.
Credit Quality Summary
At or for the Nine Months ended
At or for the Six Months ended
At or for the Year ended
At or for the Nine Months ended
(Dollars in thousands)
Sep 30,2024
Jun 30,2024
Dec 31,2023
Sep 30,2023
Allowance for credit losses
Balance at beginning of period
$
192,757
192,757
182,283
182,283
Acquisitions
3
3
—
—
Provision for credit losses
21,138
14,157
20,790
16,609
Charge-offs
(12,406
)
(8,430
)
(15,095
)
(10,284
)
Recoveries
3,678
2,468
4,779
3,663
Balance at end of period
$
205,170
200,955
192,757
192,271
Provision for credit losses
Loan portfolio
$
21,138
14,157
20,790
16,609
Unfunded loan commitments
(1,366
)
(2,390
)
(5,995
)
(4,827
)
Total provision for credit losses
$
19,772
11,767
14,795
11,782
Other real estate owned
$
432
432
1,032
—
Other foreclosed assets
201
198
471
48
Accruing loans 90 days or more past due
11,551
4,692
3,312
3,855
Non-accrual loans
15,937
12,686
20,816
38,380
Total non-performing assets
$
28,121
18,008
25,631
42,283
Non-performing assets as a percentage of subsidiary assets
0.10
%
0.06
%
0.09
%
0.15
%
Allowance for credit losses as a percentage of non-performing loans
730
%
1,116
%
799
%
455
%
Allowance for credit losses as a percentage of total loans
1.19
%
1.19
%
1.19
%
1.19
%
Net charge-offs as a percentage of total loans
0.05
%
0.04
%
0.06
%
0.04
%
Accruing loans 30-89 days past due
$
56,213
49,678
49,967
15,253
U.S. government guarantees included in non-performing assets
$
1,802
1,228
1,503
1,057
Non-performing assets as a percentage of subsidiary assets at September 30, 2024 was 0.10 percent compared to 0.06 percent in the prior quarter and 0.15 percent in the prior year third quarter. Non-performing assets of $28.1 million at September 30, 2024 increased $10.1 million, or 56 percent, over the prior quarter and decreased $14.2 million, or 33 percent, over the prior year third quarter.
Early stage delinquencies (accruing loans 30-89 days past due) as a percentage of loans at September 30, 2024 were 0.33 percent compared to 0.29 percent for the prior quarter end and 0.09 percent for the prior year third quarter. Early stage delinquencies of $56.2 million at September 30, 2024 increased $6.5 million from the prior quarter and increased $41.0 million from prior year third quarter.
The current quarter credit loss expense of $8.0 million included $2.8 million of provision for credit losses on loans and $799 thousand of provision for credit losses on unfunded commitments from the acquisition of RMB. Excluding the acquisition of RMB, the current quarter credit loss expense was $4.4 million, including $4.2 million of credit loss expense from loans and $225 thousand of credit loss expense from unfunded loan commitments.
For the first nine months of the current year, the provision for credit losses of $19.8 million included $8.1 million of provision for credit losses on loans and $1.6 million of provision for credit losses on unfunded loan commitments from the acquisitions of Wheatland and RMB.
The allowance for credit losses on loans ("ACL") as a percentage of total loans outstanding at September 30, 2024 was 1.19 percent and remained unchanged from the prior year end and the prior year third 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.
Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio
(Dollars in thousands)
Provision for Credit Losses Loans
Net Charge-Offs
ACLas a Percentof Loans
AccruingLoans 30-89Days Past Dueas a Percent ofLoans
Non-PerformingAssets toTotal SubsidiaryAssets
Third quarter 2024
$
6,981
$
2,766
1.19
%
0.33
%
0.10
%
Second quarter 2024
5,066
2,890
1.19
%
0.29
%
0.06
%
First quarter 2024
9,091
3,072
1.19
%
0.37
%
0.09
%
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
%
Net charge-offs for the current quarter were $2.8 million compared to $2.9 million in the prior quarter and $2.2 million for the prior year third quarter. Net charge-offs of $2.8 million included $1.9 million in deposit overdraft net charge-offs and $815 thousand of net loan charge-offs.
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)
Sep 30,2024
Jun 30,2024
Dec 31,2023
Sep 30,2023
Jun 30,2024
Dec 31,2023
Sep 30,2023
Deposits
Non-interest bearing deposits
$
6,407,728
6,093,430
6,022,980
6,465,353
314,298
384,748
(57,625
)
NOW and DDA accounts
5,363,476
5,219,838
5,321,257
5,253,367
143,638
42,219
110,109
Savings accounts
2,801,077
2,862,034
2,833,887
2,872,362
(60,957
)
(32,810
)
(71,285
)
Money market deposit accounts
2,854,540
2,858,850
2,831,624
2,994,631
(4,310
)
22,916
(140,091
)
Certificate accounts
3,284,609
3,064,613
2,915,393
2,742,017
219,996
369,216
542,592
Core deposits, total
20,711,430
20,098,765
19,925,141
20,327,730
612,665
786,289
383,700
Wholesale deposits
3,334
2,994
4,026
67,434
340
(692
)
(64,100
)
Deposits, total
20,714,764
20,101,759
19,929,167
20,395,164
613,005
785,597
319,600
Repurchase agreements
1,831,501
1,629,504
1,486,850
1,499,696
201,997
344,651
331,805
Deposits and repurchase agreements, total
22,546,265
21,731,263
21,416,017
21,894,860
815,002
1,130,248
651,405
Federal Home Loan Bank advances
1,800,000
2,350,000
—
—
(550,000
)
1,800,000
1,800,000
FRB Bank Term Funding
—
—
2,740,000
2,740,000
—
(2,740,000
)
(2,740,000
)
Other borrowed funds
84,168
88,149
81,695
73,752
(3,981
)
2,473
10,416
Subordinated debentures
133,065
133,024
132,943
132,903
41
122
162
Other liabilities
397,221
365,459
351,693
347,452
31,762
45,528
49,769
Total liabilities
$
24,960,719
24,667,895
24,722,348
25,188,967
292,824
238,371
(228,248
)
Total core deposits of $20.711 billion at September 30, 2024 increased $613 million, or 3 percent, from the prior quarter and increased $786 million, or 4 percent, from the prior year end. Total core deposits organically increased $217 million, or 4 percent annualized, during the current quarter and decreased $227 million, or 1 percent, from the prior year end.
Total non-interest bearing deposits of $6.408 billion, increased $314 million, or 5 percent, from the prior quarter and increased $385 million, or 6 percent, from the prior year end. Non-interest bearing deposits organically increased $221 million, or 14 percent annualized, during the current quarter and increased $13.6 million, or 23 basis points, from the prior year end. Non-interest bearing deposits represented 31 percent of total deposits at June 30, 2024, compared to 30 percent at December 31, 2023 and 32 percent at September 30, 2023.
FHLB borrowings of $1.800 billion decreased $550 million, or 23 percent, during the current quarter. Upon maturity in the first quarter of 2024, the Company paid off its $2.740 billion BTFP borrowings with a combination of $2.140 billion in FHLB borrowings and cash.
Stockholders' Equity Summary
$ Change from
(Dollars in thousands, except per share data)
Sep 30,2024
Jun 30,2024
Dec 31,2023
Sep 30,2023
Jun 30,2024
Dec 31,2023
Sep 30,2023
Common equity
$
3,507,356
3,492,096
3,394,394
3,374,961
15,260
112,962
132,395
Accumulated other comprehensive loss
(262,306
)
(354,651
)
(374,113
)
(500,367
)
92,345
111,807
238,061
Total stockholders' equity
3,245,050
3,137,445
3,020,281
2,874,594
107,605
224,769
370,456
Goodwill and intangibles, net
(1,106,336
)
(1,066,790
)
(1,017,263
)
(1,019,690
)
(39,546
)
(89,073
)
(86,646
)
Tangible stockholders' equity
$
2,138,714
2,070,655
2,003,018
1,854,904
68,059
135,696
283,810
Stockholders' equity to total assets
11.50
%
11.28
%
10.89
%
10.24
%
Tangible stockholders' equity to total tangible assets
7.89
%
7.74
%
7.49
%
6.86
%
Book value per common share
$
28.62
27.67
27.24
25.93
0.95
1.38
2.69
Tangible book value per common share
$
18.86
18.26
18.06
16.73
0.60
0.80
2.13
Tangible stockholders' equity of $2.139 billion at September 30, 2024 increased $68.1 million, or 3 percent, compared to the prior quarter and was primarily the result of a decrease in unrealized loss on the available-for-sale debt securities which was partially offset by the increase in goodwill and core deposit intangibles associated with the acquisition of RMB. Tangible stockholders' equity at September 30, 2024 increased $136 million, or 7 percent, compared to the prior year end and was primarily due to $92.4 million of Company common stock issued for the acquisition of Wheatland and the decrease in the unrealized loss on the available-for-sale securities. The increase was partially offset by the increase in goodwill and core deposits associated with the acquisitions of Wheatland and RMB. Tangible book value per common share of $18.86 at the current quarter end increased $0.80 per share, or 4 percent, from the prior year end and increased $2.13 per share, or 13 percent, from the prior year third quarter.
Cash DividendsOn September 24, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable October 17, 2024 to shareholders of record on October 8, 2024. The dividend was the Company's 158th 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 September 30, 2024 Compared to June 30, 2024, March 31, 2024 and September 30, 2023
Income Summary
Three Months ended
$ Change from
(Dollars in thousands)
Sep 30,2024
Jun 30,2024
Mar 31,2024
Sep 30,2023
Jun 30,2024
Mar 31,2024
Sep 30,2023
Net interest income
Interest income
$
289,578
273,834
279,402
264,906
15,744
10,176
24,672
Interest expense
109,347
107,356
112,922
97,852
1,991
(3,575
)
11,495
Total net interest income
180,231
166,478
166,480
167,054
13,753
13,751
13,177
Non-interest income
Service charges and other fees
20,587
19,422
18,563
19,304
1,165
2,024
1,283
Miscellaneous loan fees and charges
4,970
4,821
4,362
4,322
149
608
648
Gain on sale of loans
4,898
4,669
3,362
4,046
229
1,536
852
Gain (loss) on sale of securities
26
(12
)
16
(65
)
38
10
91
Other income
4,223
3,304
3,686
2,633
919
537
1,590
Total non-interest income
34,704
32,204
29,989
30,240
2,500
4,715
4,464
Total income
$
214,935
198,682
196,469
197,294
16,253
18,466
17,641
Net interest margin (tax-equivalent)
2.83
%
2.68
%
2.59
%
2.58
%
Net Interest IncomeThe current quarter interest income of $290 million increased $15.7 million, or 6 percent, over the prior quarter and increased $24.7 million, or 9 percent, over the prior year third quarter, with both increases being primarily due to the increase in the loan yields and the increase in average balances of the loan portfolio. The loan yield of 5.69 percent in the current quarter increased 11 basis points from the prior quarter loan yield of 5.58 percent and increased 42 basis points from the prior year third quarter loan yield of 5.27 percent.
The current quarter interest expense of $109 million increased $2.0 million, or 2 percent, over the prior quarter and was primarily attributable to the increase in average deposit balances. The current quarter interest expense increased $11.5 million, or 12 percent, over the prior year third quarter and was primarily the result of an increase in rates on deposits and borrowings. Core deposit cost (including non-interest bearing deposits) was 1.37 percent for the current quarter compared to 1.36 percent in the prior quarter and 1.03 percent for the prior year third quarter. The total cost of funding (including non-interest bearing deposits) of 1.79 percent in the current quarter decreased 1 basis point from the prior quarter. The current quarter cost of funds increased 21 basis points from the prior year third quarter which was primarily the result of the increased deposit rates.
The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.83 percent, an increase of 15 basis points from the prior quarter net interest margin of 2.68 percent and was primarily driven by an increase in loan yields. The net interest margin as a percentage of earning assets, on ...
