SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 27, 2006
GLACIER BANCORP, INC.
(Exact name of registrant as specified in its charter)
Montana
(State or other jurisdiction of incorporation)
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000-18911 |
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81-0519541 |
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(Commission File Number) |
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(IRS Employer Identification No.) |
49 Commons Loop
Kalispell, MT 59901
(Address of principal executive offices) (zip code)
Registrant’s telephone number, including area code: (406) 756-4200
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act of (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act of (17 CFR 240.13e-4(c)) |
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Item 2.02 Financial Statements and Exhibits
On July 27, 2006, the Company issued a press release announcing its financial results for the quarter ended June 30, 2006. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein in its entirety by reference.
The information in this Item 2.02 and the Exhibit attached hereto is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such document or filing.
Item 9.01 Financial Statements and Exhibits
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(a) |
Financial statements - not applicable. |
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(b) |
Pro forma financial information - not applicable. |
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(d) |
Exhibits |
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99.1 |
Press Release dated July 27, 2006, announcing financial results for the quarter ended June 30, 2006. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 27, 2006
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GLACIER BANCORP, INC. |
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/s/ Michael J. Blodnick |
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Michael J. Blodnick |
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President and Chief Executive Officer |
Exhibit 99.1
Glacier Bancorp, Inc. Earnings for Quarter Ended June 30, 2006
HIGHLIGHTS:
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* |
Record net earnings for the quarter of $14.666 million, up 12 percent from last year’s quarter. |
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* |
Record net earnings year-to-date of $28.295 million, up 15 percent from the same period last year. |
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* |
Diluted quarterly earnings per share of $0.45, up 10 percent from last year’s quarter. |
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* |
Diluted year-to-date earnings per share of $0.86, up 10 percent from the same period last year. |
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* |
Net interest margin 22 basis points greater than the first six months of 2005. |
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* |
Non-interest bearing deposits increased $37 million, or 22 percent annualized, from prior quarter. |
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* |
Loans increased $135 million, or 21 percent annualized, from prior quarter. |
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* |
Cash dividend of $0.16 declared which is an increase of 7 percent over the prior year quarter. |
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* |
Acquisition of First National Bank of Morgan with $70 million in assets announced. |
KALISPELL, Mont., July 27 /PRNewswire-FirstCall/ --
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Earnings Summary |
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Three months ended |
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Six months ended |
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2006 |
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2005 |
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2006 |
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2005 |
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Net earnings |
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$ |
14,666 |
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$ |
13,090 |
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$ |
28,295 |
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$ |
24,610 |
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Diluted earnings per share |
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$ |
0.45 |
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$ |
0.41 |
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$ |
0.86 |
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$ |
0.78 |
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Return on average assets (annualized) |
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1.52 |
% |
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1.52 |
% |
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1.50 |
% |
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1.51 |
% |
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Return on average equity (annualized) |
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16.81 |
% |
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18.03 |
% |
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16.51 |
% |
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17.56 |
% |
Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net quarterly earnings of $14.666 million, an increase of $1.6 million, or 12 percent, over the $13.090 million for the second quarter of 2005. Net quarterly earnings were reduced by $661,000, or $0.02 per share, due to the January 1, 2006 adoption of SFAS 123(R) Share-based Payment which requires recording the estimated fair value of stock options as compensation expense. Diluted earnings per share for the quarter of $0.45 is an increase of 10 percent over the per share earnings of $0.41 for the same quarter of 2005. Excluding the affects of SFAS 123(R), diluted earnings per share would have been $0.47, or an increase of 15 percent over the prior year quarter. “Our banks again produced strong operating earnings in the second quarter,” said Mick Blodnick, President and Chief Executive Officer. “The growth in our loan portfolio, our non interest deposits and our non interest income were all positive developments.” Annualized return on average assets and return on average equity for the quarter were 1.52 percent and 16.81 percent, respectively, which compares with prior year returns for the second quarter of 1.52 percent and 18.03 percent.
Net earnings for the six months ended June 30, 2006 were $28.295 million, which is an increase of $3.685 million, or 15 percent over the prior year. Diluted earnings per share of $0.86 is an increase of 10 percent over the $0.78 earned in the first six months of 2005. Excluding SFAS 123(R) compensation costs of $1.184 million, diluted earnings per share increased 15 percent for the first six months of 2006. The 2006 six month annualized return on average assets and return on average equity was 1.50 percent and 16.51 percent, respectively, which compares with prior year six month returns of 1.51 percent and 17.56 percent.
Net earnings was reduced as a result of the adoption of SFAS 123(R) Share-based Payment beginning January 1, 2006, which requires recording the estimated fair value of stock options as compensation expense. The following table illustrates the affect of the adoption of SFAS 123(R), net of tax affects, if it would not have been adopted in 2006.
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Impact of SFAS 123 ( R ) |
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Three months ended |
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Six months ended |
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2006 |
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2005 |
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2006 |
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2005 |
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Net earnings |
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$ |
14,666 |
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13,090 |
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28,295 |
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24,610 |
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Stock option compensation cost |
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661 |
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— |
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1,184 |
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— |
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Pro forma net operating earnings |
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$ |
15,327 |
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13,090 |
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29,479 |
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24,610 |
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Diluted earnings per share |
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$ |
0.45 |
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0.41 |
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0.86 |
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0.78 |
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Stock option compensation cost |
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0.02 |
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— |
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0.04 |
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— |
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Pro forma net operating earnings |
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$ |
0.47 |
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0.41 |
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0.90 |
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0.78 |
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Assets |
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June 30, |
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December 31, |
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June 30, |
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$ change |
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$ change |
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(unaudited) |
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(audited) |
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(unaudited) |
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Cash on hand and in banks |
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$ |
124,872 |
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111,418 |
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109,402 |
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13,454 |
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15,470 |
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Investments, interest bearing deposits, FHLB stock, FRB stock, and Fed Funds |
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908,899 |
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991,246 |
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1,114,334 |
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(82,347 |
) |
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(205,435 |
) |
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Loans: |
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Real estate |
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697,351 |
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607,627 |
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505,296 |
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89,724 |
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192,055 |
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Commercial |
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1,486,847 |
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1,357,051 |
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1,215,919 |
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129,796 |
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270,928 |
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Consumer and other |
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517,847 |
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471,164 |
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433,900 |
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46,683 |
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83,947 |
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Total loans |
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2,702,045 |
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2,435,842 |
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2,155,115 |
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266,203 |
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546,930 |
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Allowance for loan losses |
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(41,195 |
) |
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(38,655 |
) |
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(32,917 |
) |
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(2,540 |
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(8,278 |
) |
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Total loans net of allowance for losses |
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2,660,850 |
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2,397,187 |
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2,122,198 |
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263,663 |
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538,652 |
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Other assets |
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218,761 |
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206,493 |
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186,001 |
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12,268 |
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32,760 |
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Total Assets |
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$ |
3,913,382 |
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3,706,344 |
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3,531,935 |
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207,038 |
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381,447 |
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At June 30, 2006 total assets were $3.913 billion, which is $207 million, or 6 percent, greater than the December 31, 2005 assets of $3.706 billion, and $381 million, or 11 percent, greater than the June 30, 2005 assets of $3.532 billion.
Total loans have increased $266 million from December 31, 2005, or 11 percent, with the growth occurring in all loan categories. Commercial loans have increased $130 million, or 10 percent, real estate loans gained $90 million, or 15 percent, and consumer loans grew by $47 million, or 10 percent. “Solid loan volume once again this quarter allowed us to continue reshaping our balance sheet mix to earning assets with higher yields,” Blodnick said. Total loans increased $547 million, or 25 percent, with internal loan growth of $435 million from June 30, 2005, with all loan categories showing increases. Including loans acquired, commercial loans increased the most, $271 million, or 22 percent, followed by real estate loans which increased $192 million, or 38 percent, which was the largest percentage gain, and consumer loans, which are primarily comprised of home equity loans, increasing by $84 million, or 19 percent.
Investment securities, including interest bearing deposits in other financial institutions, and federal funds sold have decreased $82 million from December 31, 2005, or 8 percent, and have declined $205 million, or 18 percent, from June 30, 2005. Investment securities at June 30, 2006 represented 23% of total assets versus 32% the prior year, which is a result of the continued use of investment cash flow to fund loan growth.
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Liabilities
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June 30, |
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December 31, |
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June 30, |
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$ change |
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$ change |
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(unaudited) |
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(audited) |
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(unaudited) |
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Non-interest bearing deposits |
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$ |
720,473 |
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667,008 |
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630,983 |
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53,465 |
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89,490 |
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Interest bearing deposits |
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1,972,296 |
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1,867,704 |
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1,576,872 |
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104,592 |
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395,424 |
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Advances from Federal Home Loan Bank |
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435,978 |
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402,191 |
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804,047 |
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33,787 |
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(368,069 |
) |
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Securities sold under agreements to repurchase and other borrowed funds |
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313,394 |
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317,222 |
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100,811 |
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(3,828 |
) |
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212,583 |
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Other liabilities |
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33,411 |
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33,980 |
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36,463 |
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(569 |
) |
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(3,052 |
) |
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Subordinated debentures |
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85,000 |
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85,000 |
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85,000 |
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— |
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— |
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Total liabilities |
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$ |
3,560,552 |
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3,373,105 |
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3,234,176 |
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187,447 |
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326,376 |
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Non-interest bearing deposits have increased $53 million, or 8 percent, since December 31, 2005, and by $89 million, or 14 percent, since June 30, 2005. This low cost of funding continues to be a primary focus of each of our banks. Interest bearing deposits have increased $105 million from December 31, 2005, of which $22 million was in Internet generated National Market CD’s. Since June 30, 2005 interest bearing deposits have increased $395 million, or 25 percent, with $166 million of that amount from broker and Internet sources. Federal Home Loan Bank (FHLB) advances increased $34 million, and repurchase agreements and other borrowed funds decreased $4 million from December 31, 2005. FHLB advances are $368 million less than the June 30, 2005 balances due primarily to the above described increases in deposits and other funding sources including $158 million in U.S. Treasury Tax and Loan Term Auction funds.
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Stockholders’ Equity
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June 30, |
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December 31, |
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June 30, |
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$ change |
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$ change |
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(unaudited) |
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(audited) |
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(unaudited) |
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Common equity |
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$ |
357,308 |
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$ |
332,418 |
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$ |
291,062 |
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24,890 |
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66,246 |
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Accumulated other comprehensive (loss) income |
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(4,478 |
) |
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821 |
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6,697 |
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(5,299 |
) |
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(11,175 |
) |
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Total stockholders’ equity |
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352,830 |
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333,239 |
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297,759 |
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19,591 |
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55,071 |
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Core deposit intangible, net, and goodwill |
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(86,294 |
) |
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(87,114 |
) |
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(80,286 |
) |
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820 |
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(6,008 |
) |
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Tangible stockholders’ equity |
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$ |
266,536 |
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|
246,125 |
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217,473 |
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|
20,411 |
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49,063 |
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Stockholders’ equity to total assets |
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9.02 |
% |
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8.99 |
% |
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8.43 |
% |
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Tangible stockholders’ equity to total tangible assets |
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6.96 |
% |
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6.80 |
% |
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6.30 |
% |
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Book value per common share |
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$ |
10.88 |
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10.36 |
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9.53 |
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|
0.52 |
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|
1.35 |
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Market price per share at end of quarter |
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$ |
29.27 |
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|
30.05 |
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26.13 |
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(0.78 |
) |
|
3.14 |
|
Total equity and book value per share amounts have increased $19.591 million and $0.52 per share, respectively, from December 31, 2005, the result of earnings retention and stock options exercised that outpaced the reduction in other comprehensive income. Accumulated other comprehensive income, representing net unrealized gains (losses) on securities available for sale, decreased $11.175 million from June 30, 2005 and $5.299 million from year end, primarily a function of interest rate changes.
Operating Results for Three Months Ended June 30, 2006 Compared to
June 30, 2005
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Revenue summary |
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Three months ended June 30, |
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2006 |
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2005 |
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$ change |
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% change |
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Net interest income |
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$ |
37,626 |
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$ |
32,087 |
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$ |
5,539 |
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17 |
% |
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Non-interest income |
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Service charges, loan fees, and other fees |
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9,349 |
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7,850 |
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1,499 |
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19 |
% |
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Gain on sale of loans |
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2,770 |
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2,884 |
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(114 |
) |
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-4 |
% |
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Loss on sale of investments |
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— |
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(107 |
) |
|
107 |
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|
-100 |
% |
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Other income |
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|
779 |
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|
886 |
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(107 |
) |
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-12 |
% |
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Total non-interest income |
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|
12,898 |
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|
11,513 |
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|
1,385 |
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12 |
% |
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$ |
50,524 |
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$ |
43,600 |
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$ |
6,924 |
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16 |
% |
|
Tax equivalent net interest margin |
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|
4.34 |
% |
|
4.14 |
% |
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Net Interest Income
Net interest income for the quarter increased $5.539 million, or 17 percent, over the same period in 2005, and $1.318 million from the first quarter of 2006. Total interest income increased $13.388 million from the prior year’s quarter, or 29 percent, while total interest expense increased $7.849 million, or 54 percent. The increase in interest expense is primarily attributable to the volume increase in interest bearing deposits, and increases in short term interest rates during 2005 continuing into 2006. The Federal Reserve Bank has increased the targeted fed funds rate 12 times or 300 basis points, since January 1, 2005. The tax equivalent net interest margin calculation has been changed to an actual 365 day base from a 360 day base. Previously reported net interest margins have been adjusted to reflect the change. The net interest margin as a percentage of earning assets for the quarter, on a tax equivalent basis, was 4.34 percent which was higher than the restated 4.14 percent result for the second quarter of 2005. The margin for the second quarter of 2006 decreased slightly from the first quarter of 2006 restated margin of 4.38 percent (4.32 originally reported), primarily a result of the continued increase in funding costs.
Non-interest Income
Fee income increased $1.499 million, or 19 percent, over the same period last year, driven primarily by an increased number of loan and deposit accounts from internal growth and acquisitions. Gain on sale of loans decreased $114 thousand, or 4 percent, from the second quarter of last year. Loan origination volume in our markets for housing construction continues to remain very active by historical standards and the recent decline was expected with the slow down from unprecedented activity last year and as interest rates continues to rise.
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Non-interest expense summary |
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Three Months Ended June 30, |
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2006 |
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2005 |
|
$ change |
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% change |
|
|||||
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|
|
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|
|
|
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Compensation and employee benefits |
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$ |
15,739 |
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$ |
12,474 |
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$ |
3,265 |
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|
26 |
% |
|
Occupancy and equipment expense |
|
|
3,431 |
|
|
3,152 |
|
|
279 |
|
|
9 |
% |
|
Outsourced data processing |
|
|
678 |
|
|
423 |
|
|
255 |
|
|
60 |
% |
|
Core deposit intangibles amortization |
|
|
400 |
|
|
384 |
|
|
16 |
|
|
4 |
% |
|
Other expenses |
|
|
6,702 |
|
|
6,043 |
|
|
659 |
|
|
11 |
% |
|
Total non-interest expense |
|
$ |
26,950 |
|
$ |
22,476 |
|
$ |
4,474 |
|
|
20 |
% |
Non-interest Expense
Non-interest expense increased by $4.474 million, or 20 percent, from the same quarter of 2005. Compensation and benefit expense increased $3.265 million, or 26 percent, of which $961 thousand was from expensing stock options with the adoption of SFAS 123(R) in 2006. The remaining increase in compensation and benefit expense was primarily attributed to four acquisitions during 2005 and normal compensation increases for job performance and increased cost for benefits. The number of full-time-equivalent employees has increased from 1,057 to 1,171, an 11 percent increase, since June 30, 2005. Occupancy and equipment expense increased $279 thousand, or 9 percent, reflecting the bank acquisitions, cost of additional branch locations and facility upgrades. Other expenses increased $659 thousand, or 11 percent, primarily from acquisitions, additional marketing expenses, and costs associated with new branch offices. The efficiency ratio (non-interest expense/net interest income + non-interest income) was 53 percent for the 2006 quarter, up from 52 percent for the 2005 quarter.
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Credit quality information |
|
June 30, |
|
December 31, |
|
June 30, |
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|||
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|
|||
|
|
|
(unaudited) |
|
(audited) |
|
(unaudited) |
|
|||
|
Allowance for loan losses |
|
$ |
41,195 |
|
$ |
38,655 |
|
$ |
32,917 |
|
|
Non-performing assets |
|
|
8,943 |
|
|
10,089 |
|
|
8,093 |
|
|
Allowance as a percentage of non performing assets |
|
|
461 |
% |
|
383 |
% |
|
407 |
% |
|
Non-performing assets as a percentage of total assets |
|
|
0.23 |
% |
|
0.26 |
% |
|
0.23 |
% |
|
Allowance as a percentage of total loans |
|
|
1.52 |
% |
|
1.59 |
% |
|
1.53 |
% |
|
Net recoveries (charge-offs) as a percentage of loans |
|
|
0.00 |
% |
|
(0.02 |
)% |
|
(0.02 |
)% |
Allowance for Loan Loss and Non-Performing Assets
Non-performing assets as a percentage of total assets at June 30, 2006 were at .23 percent, the same percentage as at June 30, 2005, but decreasing slightly from .26 percent at December 31, 2005. The Company ratios compare favorably to the Federal Reserve Bank Peer Group average of .41 percent at March 31, 2006, the most recent information available. The allowance for loan losses was 461 percent of non-performing assets at June 30, 2006, up from 407 percent a year ago. The allowance, including $2.792 million from 2005 acquisitions, has increased $8.278 million, or 25 percent, from a year ago. The allowance of $41.195 million, is 1.52 percent of June 30, 2006 total loans outstanding, down slightly from the 1.53 percent a year ago. The second quarter provision for loan losses expense was $1.355 million, a decrease of $197 thousand from the same quarter in 2005. Net charge offs remain low at $11 thousand for the second quarter of 2006. Loan growth, average loan size, and credit quality considerations will determine the level of additional provision expense.
Operating Results for Six Months Ended June 30, 2006 Compared to
June 30, 2005
|
Revenue summary |
|
Six Months Ended June 30, |
|
||||||||||
|
|
|
|
|||||||||||
|
|
2006 |
|
2005 |
|
$ change |
|
% change |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
73,934 |
|
$ |
60,543 |
|
$ |
13,391 |
|
|
22 |
% |
|
Non-interest income Service charges, loan fees, and other fees |
|
|
17,566 |
|
|
14,332 |
|
|
3,234 |
|
|
23 |
% |
|
Gain on sale of loans |
|
|
4,960 |
|
|
4,976 |
|
|
(16 |
) |
|
0 |
% |
|
Loss on sale of investments |
|
|
— |
|
|
(137 |
) |
|
137 |
|
|
-100 |
% |
|
Other income |
|
|
1,528 |
|
|
1,450 |
|
|
78 |
|
|
5 |
% |
|
Total non-interest income |
|
|
24,054 |
|
|
20,621 |
|
|
3,433 |
|
|
17 |
% |
|
|
|
$ |
97,988 |
|
$ |
81,164 |
|
$ |
16,824 |
|
|
21 |
% |
|
Tax equivalent net interest margin |
|
|
4.36 |
% |
|
4.14 |
% |
|
|
|
|
|
|
Net Interest Income
Net interest income for the six months increased $13.391 million, or 22 percent, over the same period in 2005. Total interest income increased $28.833 million, or 33 percent, while total interest expense increased $15.442 million, or 58 percent. The increase in interest expense is primarily attributable to the volume increase in interest bearing deposits, and increases in short term interest rates during 2005 and continuing in 2006. The tax equivalent net interest margin calculation has been changed to an actual 365 day base from a 360 day base. Previously reported net interest margins have been adjusted to reflect the change. The net interest margin as a percentage of earning assets, on a tax equivalent basis, was 4.36 percent which was 22 basis points higher than the restated 4.14 percent result for 2005.
Non-interest Income
Total non-interest income increased $3.433 million, or 17 percent in 2006. Fee income increased $3.234 million, or 23 percent, over last year, driven primarily by an increased number of loan and deposit accounts, acquisitions, and additional customer product and services offered. Gain on sale of loans decreased $16 thousand, or less than 1 percent, from the first six months of last year. Loan origination volume in our markets for housing construction continues to remain very active by historical standards and the recent decline was expected with the slow down from unprecedented activity last year and as interest rates continue to rise.
|
Non-interest expense summary |
|
Six Months Ended June 30, |
|
||||||||||
|
|
|
|
|||||||||||
|
|
2006 |
|
2005 |
|
$ change |
|
% change |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
$ |
31,050 |
|
$ |
23,418 |
|
$ |
7,632 |
|
|
33 |
% |
|
Occupancy and equipment expense |
|
|
6,922 |
|
|
6,007 |
|
|
915 |
|
|
15 |
% |
|
Outsourced data processing |
|
|
1,402 |
|
|
655 |
|
|
747 |
|
|
114 |
% |
|
Core deposit intangibles amortization |
|
|
820 |
|
|
667 |
|
|
153 |
|
|
23 |
% |
|
Other expenses |
|
|
12,583 |
|
|
10,803 |
|
|
1,780 |
|
|
16 |
% |
|
Total non-interest expense |
|
$ |
52,777 |
|
$ |
41,550 |
|
$ |
11,227 |
|
|
27 |
% |
Non-interest Expense
Non-interest expense increased by $11.227 million, or 27 percent, from the same six months of 2005. Compensation and benefit expense increased $7.632 million, or 33 percent, of which $1.684 million was from expensing stock options with the adoption of SFAS 123(R) in 2006. The remaining increase in compensation and benefit expense was primarily attributed to four acquisitions during 2005, the addition of four new bank branches in 2006, and normal compensation increases for job performance and increased costs for benefits. Occupancy and equipment expense increased $915 thousand, or 15 percent, reflecting the acquisitions, cost of additional locations and facility upgrades. Other expenses increased $1.780 million, or 16 percent, primarily from acquisitions, additional marketing expenses, and costs associated with new branch offices. The efficiency ratio (non-interest expense/net interest income + non-interest income) increased to 54 percent from 51 percent for the first six months of 2005 largely a result of the recent acquisitions and branch openings.
Allowance for Loan Loss and Non-Performing Assets
The provision for loan losses expense was $2.520 million for the first six months of 2006, a decrease of $522,000, or 17 percent, from the same period in 2005. Recovery of previously charged-off loans exceeded amounts charged-off during the six months ended June 30, 2006 by $20,000.
Cash dividend
On June 28, 2006, the board of directors declared a cash dividend of $0.16 payable July 20, 2006 to shareholders of record on July 11, 2006, which is an increase of 7 percent over the $0.15 dividend declared in the second quarter of last year.
Status of Pending Bank Acquisitions
On April 21, 2006, Glacier announced the signing of a definitive agreement to acquire Citizens Development Company in a transaction valued at approximately $77 million. Citizens is a Billings, Montana-based bank holding company that owns five community banks located throughout Montana, with principal banking offices in Billings, Lewiston, Hamilton, Columbia Falls and Chinook. At March 31, 2006, Citizens had total assets of $410 million, net loans of $285 million, total deposits of $360 million, and stockholders’ equity of $36 million. The acquisition of the Citizens banks will strengthen the Company’s presence in three of Montana’s strongest markets-Billings, the Flathead Valley, and the Bitterroot Valley, while expanding its operations in central Montana.
On May 31, 2006, Glacier announced the signing of a definitive agreement to acquire First National Bank of Morgan in a transaction valued at approximately $20 million. First National Bank of Morgan is a national banking association with its main office in Morgan, Utah and one branch office in Mountain Green, Utah. At March 31, 2006, First National Bank of Morgan had total assets of $70 million, net loans of $44 million, total deposits of $61 million, and stockholders’ equity of $9 million. The acquisition of First National Bank of Morgan will be the Company’s first whole-bank acquisition in Utah, expanding Glacier’s focused community bank strategy in Utah and complementing its two existing Utah branches.
The two announced acquisitions, which are subject to bank regulatory approval, are both presently expected to close in the later part of August, 2006. The transactions are expected to be immediately accretive to Glacier’s earnings per share. “We are excited to complete the First National Bank of Morgan and Citizens Development Company acquisitions,” Blodnick said. “We are adding some very talented and energetic bankers to our Company who will make a positive impact going forward.”
Headquartered in Kalispell, Montana, Glacier Bancorp, Inc. conducts business from Glacier Bank of Kalispell, First Security Bank of Missoula, Glacier Bank of Whitefish, Valley Bank of Helena, Big Sky Western Bank of Bozeman, Western Security Bank of Billings, all located in Montana, Mountain West Bank located in Idaho with two branches in Utah and two in Washington, 1st Bank, Evanston, Wyoming, and Citizens Community Bank, Pocatello, Idaho.
This news release includes forward looking statements, which describe management’s expectations regarding future events and developments such as future operating results, growth in loans and deposits, continued success of the Company’ style of banking and the strength of the local economies in which it operates. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. In addition to discussions about risks and uncertainties set forth from time to time in the Company’s public filings, factors that may cause actual results to differ materially from those contemplated by such forward looking statements include, among others, the following possibilities: (1) local, national and international economic conditions are less favorable than expected or have a more direct and pronounced effect on the Company than expected and adversely affect the company’s ability to continue its internal growth at historical rates and maintain the quality of its earning assets; (2) changes in interest rates reduce interest margins more than expected and negatively affect funding sources; (3) projected business increases following strategic expansion or opening or acquiring new banks and/or branches are lower than expected; (4) costs or difficulties related to the integration of acquisitions are greater than expected; (5) competitive pressure among financial institutions increases significantly; (6) legislation or regulatory requirements or changes adversely affect the businesses in which the Company is engaged.
Visit our website at www.glacierbancorp.com
GLACIER BANCORP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
($ in thousands except per share data)
|
|
|
June 30, |
|
December 31, |
|
June 30, |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
(audited) |
|
(unaudited) |
|
|||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash on hand and in banks |
|
$ |
124,872 |
|
|
111,418 |
|
|
109,402 |
|
|
Federal funds sold |
|
|
4,880 |
|
|
7,537 |
|
|
10,576 |
|
|
Interest bearing cash deposits |
|
|
33,559 |
|
|
15,739 |
|
|
19,657 |
|
|
Investment securities, available-for-sale |
|
|
870,460 |
|
|
967,970 |
|
|
1,084,101 |
|
|
Net loans receivable: |
|
|
|
|
|
|
|
|
|
|
|
Real estate loans |
|
|
697,351 |
|
|
607,627 |
|
|
505,296 |
|
|
Commercial loans |
|
|
1,486,847 |
|
|
1,357,051 |
|
|
1,215,919 |
|
|
Consumer and other loans |
|
|
517,847 |
|
|
471,164 |
|
|
433,900 |
|
|
Allowance for losses |
|
|
(41,195 |
) |
|
(38,655 |
) |
|
(32,917 |
) |
|
Total loans, net |
|
|
2,660,850 |
|
|
2,397,187 |
|
|
2,122,198 |
|
|
Premises and equipment, net |
|
|
88,883 |
|
|
79,952 |
|
|
69,280 |
|
|
Real estate and other assets owned, net |
|
|
605 |
|
|
332 |
|
|
2,319 |
|
|
Accrued interest receivable |
|
|
20,449 |
|
|
19,923 |
|
|
17,820 |
|
|
Deferred tax asset |
|
|
1,199 |
|
|
— |
|
|
— |
|
|
Core deposit intangible, net |
|
|
7,195 |
|
|
8,015 |
|
|
7,904 |
|
|
Goodwill |
|
|
79,099 |
|
|
79,099 |
|
|
72,382 |
|
|
Other assets |
|
|
21,331 |
|
|
19,172 |
|
|
16,296 |
|
|
|
|
$ |
3,913,382 |
|
|
3,706,344 |
|
|
3,531,935 |
|
|
Liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
$ |
720,473 |
|
|
667,008 |
|
|
630,983 |
|
|
Interest bearing deposits |
|
|
1,972,296 |
|
|
1,867,704 |
|
|
1,576,872 |
|
|
Advances from Federal Home Loan Bank of Seattle |
|
|
435,978 |
|
|
402,191 |
|
|
804,047 |
|
|
Securities sold under agreements to repurchase |
|
|
151,098 |
|
|
129,530 |
|
|
95,235 |
|
|
Other borrowed funds |
|
|
162,296 |
|
|
187,692 |
|
|
5,576 |
|
|
Accrued interest payable |
|
|
9,453 |
|
|
7,437 |
|
|
6,574 |
|
|
Deferred tax liability |
|
|
— |
|
|
2,746 |
|
|
9,262 |
|
|
Subordinated debentures |
|
|
85,000 |
|
|
85,000 |
|
|
85,000 |
|
|
Other liabilities |
|
|
23,958 |
|
|
23,797 |
|
|
20,627 |
|
|
Total liabilities |
|
|
3,560,552 |
|
|
3,373,105 |
|
|
3,234,176 |
|
|
Preferred shares, $.01 par value per share. 1,000,000 shares authorized |
|
|
|
|
|
|
|
|
|
|
None issued or outstanding |
|
|
— |
|
|
— |
|
|
— |
|
|
Common stock, $.01 par value per share. 78,125,000 shares authorized |
|
|
324 |
|
|
322 |
|
|
313 |
|
|
Paid-in capital |
|
|
269,340 |
|
|
262,383 |
|
|
238,941 |
|
|
Retained earnings - substantially restricted |
|
|
87,644 |
|
|
69,713 |
|
|
51,808 |
|
|
Accumulated other comprehensive (loss) income |
|
|
(4,478 |
) |
|
821 |
|
|
6,697 |
|
|
Total stockholders’ equity |
|
|
352,830 |
|
|
333,239 |
|
|
297,759 |
|
|
|
|
$ |
3,913,382 |
|
|
3,706,344 |
|
|
3,531,935 |
|
|
Number of shares outstanding |
|
|
32,439,173 |
|
|
32,172,547 |
|
|
31,258,586 |
|
|
Book value of equity per share |
|
|
10.88 |
|
|
10.36 |
|
|
9.53 |
|
GLACIER BANCORP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
($ in thousands except per share data)
|
|
|
Three months ended |
|
Six months ended |
|
||||||||
|
|
|
|
|
|
|
||||||||
|
|
|
2006 |
|
2005 |
|
2006 |
|
2005 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans |
|
$ |
12,242 |
|
|
8,097 |
|
|
23,231 |
|
|
14,712 |
|
|
Commercial loans |
|
|
27,479 |
|
|
19,588 |
|
|
53,004 |
|
|
36,112 |
|
|
Consumer and other loans |
|
|
9,654 |
|
|
7,011 |
|
|
18,519 |
|
|
12,741 |
|
|
Investment securities and other |
|
|
10,558 |
|
|
11,849 |
|
|
21,131 |
|
|
23,487 |
|
|
Total interest income |
|
|
59,933 |
|
|
46,545 |
|
|
115,885 |
|
|
87,052 |
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
13,761 |
|
|
5,582 |
|
|
25,052 |
|
|
9,651 |
|
|
Federal Home Loan Bank of Seattle advances |
|
|
4,417 |
|
|
5,770 |
|
|
9,213 |
|
|
11,013 |
|
|
Securities sold under agreements to repurchase |
|
|
1,471 |
|
|
601 |
|
|
2,761 |
|
|
999 |
|
|
Subordinated debentures |
|
|
1,284 |
|
|
1,629 |
|
|
2,713 |
|
|
3,184 |
|
|
Other borrowed funds |
|
|
1,374 |
|
|
876 |
|
|
2,212 |
|
|
1,662 |
|
|
Total interest expense |
|
|
22,307 |
|
|
14,458 |
|
|
41,951 |
|
|
26,509 |
|
|
Net interest income |
|
|
37,626 |
|
|
32,087 |
|
|
73,934 |
|
|
60,543 |
|
|
Provision for loan losses |
|
|
1,355 |
|
|
1,552 |
|
|
2,520 |
|
|
3,042 |
|
|
Net interest income after provision for loan losses |
|
|
36,271 |
|
|
30,535 |
|
|
71,414 |
|
|
57,501 |
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and other fees |
|
|
7,392 |
|
|
6,241 |
|
|
13,798 |
|
|
11,445 |
|
|
Miscellaneous loan fees and charges |
|
|
1,957 |
|
|
1,609 |
|
|
3,768 |
|
|
2,887 |
|
|
Gain on sale of loans |
|
|
2,770 |
|
|
2,884 |
|
|
4,960 |
|
|
4,976 |
|
|
Loss on sale of investments |
|
|
— |
|
|
(107 |
) |
|
— |
|
|
(137 |
) |
|
Other income |
|
|
779 |
|
|
886 |
|
|
1,528 |
|
|
1,450 |
|
|
Total non-interest income |
|
|
12,898 |
|
|
11,513 |
|
|
24,054 |
|
|
20,621 |
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation, employee benefits and related expenses |
|
|
15,739 |
|
|
12,474 |
|
|
31,050 |
|
|
23,418 |
|
|
Occupancy and equipment expense |
|
|
3,431 |
|
|
3,152 |
|
|
6,922 |
|
|
6,007 |
|
|
Outsourced data processing expense |
|
|
678 |
|
|
423 |
|
|
1,402 |
|
|
655 |
|
|
Core deposit intangibles amortization |
|
|
400 |
|
|
384 |
|
|
820 |
|
|
667 |
|
|
Other expenses |
|
|
6,702 |
|
|
6,043 |
|
|
12,583 |
|
|
10,803 |
|
|
Total non-interest expense |
|
|
26,950 |
|
|
22,476 |
|
|
52,777 |
|
|
41,550 |
|
|
Earnings before income taxes |
|
|
22,219 |
|
|
19,572 |
|
|
42,691 |
|
|
36,572 |
|
|
Federal and state income tax expense |
|
|
7,553 |
|
|
6,482 |
|
|
14,396 |
|
|
11,962 |
|
|
Net earnings |
|
$ |
14,666 |
|
|
13,090 |
|
|
28,295 |
|
|
24,610 |
|
|
Basic earnings per share |
|
|
0.45 |
|
|
0.42 |
|
|
0.87 |
|
|
0.79 |
|
|
Diluted earnings per share |
|
|
0.45 |
|
|
0.41 |
|
|
0.86 |
|
|
0.78 |
|
|
Dividends declared per share |
|
|
0.16 |
|
|
0.15 |
|
|
0.32 |
|
|
0.29 |
|
|
Return on average assets (annualized) |
|
|
1.52 |
% |
|
1.52 |
% |
|
1.50 |
% |
|
1.51 |
% |
|
Return on average equity (annualized) |
|
|
16.81 |
% |
|
18.03 |
% |
|
16.51 |
% |
|
17.56 |
% |
|
Return on average tangible equity (annualized) |
|
|
22.95 |
% |
|
24.66 |
% |
|
22.72 |
% |
|
22.80 |
% |
|
Average outstanding shares - basic |
|
|
32,439,173 |
|
|
31,228,123 |
|
|
32,346,182 |
|
|
30,997,527 |
|
|
Average outstanding shares - diluted |
|
|
32,897,320 |
|
|
31,753,966 |
|
|
32,861,724 |
|
|
31,530,648 |
|
|
|
|
For the Three months ended 06-30-06 |
|
|||||||
|
|
|
|
|
|||||||
|
AVERAGE BALANCE SHEET |
|
Average |
|
Interest |
|
Average |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Real Estate Loans |
|
$ |
671,013 |
|
|
12,242 |
|
|
7.30 |
% |
|
Commercial Loans |
|
|
1,459,494 |
|
|
27,479 |
|
|
7.55 |
% |
|
Consumer and Other Loans |
|
|
504,591 |
|
|
9,654 |
|
|
7.67 |
% |
|
Total Loans |
|
|
2,635,098 |
|
|
49,375 |
|
|
7.52 |
% |
|
Tax -Exempt Investment Securities(1) |
|
|
282,941 |
|
|
3,459 |
|
|
4.89 |
% |
|
Other Investment Securities |
|
|
673,506 |
|
|
7,099 |
|
|
4.22 |
% |
|
Total Earning Assets |
|
|
3,591,545 |
|
|
59,933 |
|
|
6.68 |
% |
|
Goodwill and Core Deposit Intangible |
|
|
86,521 |
|
|
|
|
|
|
|
|
Other Non-Earning Assets |
|
|
193,026 |
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
3,871,092 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
NOW Accounts |
|
$ |
389,133 |
|
|
702 |
|
|
0.72 |
% |
|
Savings Accounts |
|
|
232,209 |
|
|
501 |
|
|
0.86 |
% |
|
Money Market Accounts |
|
|
544,161 |
|
|
3,907 |
|
|
2.88 |
% |
|
Certificates of Deposit |
|
|
882,475 |
|
|
8,651 |
|
|
3.93 |
% |
|
FHLB Advances |
|
|
449,519 |
|
|
4,417 |
|
|
3.94 |
% |
|
Repurchase Agreements and Other Borrowed Funds |
|
|
337,955 |
|
|
4,129 |
|
|
4.90 |
% |
|
Total Interest Bearing Liabilities |
|
|
2,835,452 |
|
|
22,307 |
|
|
3.16 |
% |
|
Non-interest Bearing Deposits |
|
|
653,834 |
|
|
|
|
|
|
|
|
Other Liabilities |
|
|
31,928 |
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
3,521,214 |
|
|
|
|
|
|
|
|
Common Stock |
|
|
324 |
|
|
|
|
|
|
|
|
Paid-In Capital |
|
|
267,148 |
|
|
|
|
|
|
|
|
Retained Earnings |
|
|
83,848 |
|
|
|
|
|
|
|
|
Accumulated Other |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income |
|
|
(1,442 |
) |
|
|
|
|
|
|
|
Total Stockholders’ Equity |
|
|
349,878 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
3,871,092 |
|
|
|
|
|
|
|
|
Net Interest Income |
|
|
|
|
$ |
37,626 |
|
|
|
|
|
Net Interest Spread |
|
|
|
|
|
|
|
|
3.52 |
% |
|
Net Interest Margin on Average Earning Assets |
|
|
|
|
|
|
|
|
4.20 |
% |
|
Return on Average Assets (annualized) |
|
|
|
|
|
|
|
|
1.52 |
% |
|
Return on Average Equity (annualized) |
|
|
|
|
|
|
|
|
16.81 |
% |
|
|
|
|
(1) |
Excludes tax effect on non-taxable investment security income |
|
|
|
For the Six months ended 06-30-06 |
|
|||||||
|
|
|
|
|
|||||||
|
AVERAGE BALANCE SHEET |
|
Average |
|
Interest |
|
Average |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Real Estate Loans |
|
$ |
645,077 |
|
|
23,231 |
|
|
7.20 |
% |
|
Commercial Loans |
|
|
1,428,464 |
|
|
53,004 |
|
|
7.48 |
% |
|
Consumer and Other Loans |
|
|
493,009 |
|
|
18,519 |
|
|
7.57 |
% |
|
Total Loans |
|
|
2,566,550 |
|
|
94,754 |
|
|
7.44 |
% |
|
Tax -Exempt Investment Securities(1) |
|
|
283,325 |
|
|
6,948 |
|
|
4.90 |
% |
|
Other Investment Securities |
|
|
680,194 |
|
|
14,183 |
|
|
4.17 |
% |
|
Total Earning Assets |
|
|
3,530,069 |
|
|
115,885 |
|
|
6.57 |
% |
|
Goodwill and Core Deposit Intangible |
|
|
87,065 |
|
|
|
|
|
|
|
|
Other Non-Earning Assets |
|
|
189,191 |
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
3,806,325 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
NOW Accounts |
|
$ |
368,148 |
|
|
1,172 |
|
|
0.64 |
% |
|
Savings Accounts |
|
|
239,031 |
|
|
1,078 |
|
|
0.91 |
% |
|
Money Market Accounts |
|
|
519,732 |
|
|
6,750 |
|
|
2.62 |
% |
|
Certificates of Deposit |
|
|
856,079 |
|
|
16,052 |
|
|
3.78 |
% |
|
FHLB Advances |
|
|
485,746 |
|
|
9,213 |
|
|
3.82 |
% |
|
Repurchase Agreements and Other Borrowed Funds |
|
|
316,285 |
|
|
7,686 |
|
|
4.90 |
% |
|
Total Interest Bearing Liabilities |
|
|
2,785,021 |
|
|
41,951 |
|
|
3.04 |
% |
|
Non-interest Bearing Deposits |
|
|
642,227 |
|
|
|
|
|
|
|
|
Other Liabilities |
|
|
33,573 |
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
3,460,821 |
|
|
|
|
|
|
|
|
Common Stock |
|
|
323 |
|
|
|
|
|
|
|
|
Paid-In Capital |
|
|
265,354 |
|
|
|
|
|
|
|
|
Retained Earnings |
|
|
79,716 |
|
|
|
|
|
|
|
|
Accumulated Other |
|
|
111 |
|
|
|
|
|
|
|
Comprehensive Income |
|
|
111 |
|
|
|
|
|
|
|
|
Total Stockholders’ Equity |
|
|
345,504 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
3,806,325 |
|
|
|
|
|
|
|
|
Net Interest Income |
|
|
|
|
$ |
73,934 |
|
|
|
|
|
Net Interest Spread |
|
|
|
|
|
|
|
|
3.53 |
% |
|
Net Interest Margin on Average Earning Assets |
|
|
|
|
|
|
|
|
4.22 |
% |
|
Return on Average Assets (annualized) |
|
|
|
|
|
|
|
|
1.50 |
% |
|
Return on Average Equity (annualized) |
|
|
|
|
|
|
|
|
16.51 |
% |
|
|
|
|
(1) |
Excludes tax effect on non-taxable investment security income |
SOURCE Glacier Bancorp, Inc.
-0- 07/27/2006
/CONTACT: Michael J. Blodnick, +1-406-751-4701, or James H. Strosahl, +1-406-751-4702, both of Glacier Bancorp, Inc./
/Web site: http://www.glacierbancorp.com /