Glacier Bancorp, Inc. Announces Results for the Quarter and Period Ended June 30, 2022
Published
2nd Quarter 2022 Highlights:· Net income was $76.4 million for the current quarter, an increase of $8.6 million, or 13 percent, from the prior quarter net income of $67.8 million.
· The loan portfolio, excluding the Payroll Protection Program (“PPP”) loans, grew $714 million, or 21 percent annualized, in the current quarter.
· Net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.23 percent compared to 3.20 percent in the prior quarter. The core net interest margin for the current quarter of 3.16 percent, increased 9 basis points from 3.07 percent in the prior quarter.
· Net interest income, on a tax-equivalent basis, was $199 million in the current quarter which increased $8.6 million, or 5 percent, over the prior quarter net interest income of $190 million.
· Core deposits increased $85.5 million, or 2 percent annualized, during the current quarter.
· Non-interest bearing deposits increased $71.3 million, or 4 percent, annualized during the current quarter.
· The Company declared a quarterly dividend of $0.33 per share. The Company has declared 149 consecutive quarterly dividends and has increased the dividend 49 times.First Half 2022 Highlights:
· The loan portfolio, excluding the PPP loans, organically grew $1.121 billion, or 17 percent annualized, in the first half of 2022.
· Net interest income, on a tax-equivalent basis, was $389 million in the first half of 2022. Excluding the PPP loans, net interest income was $384 million which increased $86.8 million, or 29 percent, over the prior year first half net interest income of $298 million.
· Core deposits increased $468 million, or 4 percent annualized, during the first six months of 2022.
· Dividends declared in the first half of 2022 of $0.66 per share, an increase of $0.03 per share, or 5 percent, over the prior year dividends of $0.63.
Financial Summary
At or for the Three Months ended At or for the Six Months ended
(Dollars in thousands, except per share and market data) Jun 30,
2022 Mar 31,
2022 Jun 30,
2021 Jun 30,
2022 Jun 30,
2021
Operating results
Net income $ 76,392 67,795 77,627 144,187 158,429
Basic earnings per share $ 0.69 0.61 0.81 1.30 1.66
Diluted earnings per share $ 0.69 0.61 0.81 1.30 1.66
Dividends declared per share $ 0.33 0.33 0.32 0.66 0.63
Market value per share
Closing $ 47.42 50.28 55.08 47.42 55.08
High $ 51.40 60.69 63.05 60.69 67.35
Low $ 44.43 49.61 52.99 44.43 44.55
Selected ratios and other data
Number of common stock shares outstanding 110,766,287 110,763,316 95,507,234 110,766,287 95,507,234
Average outstanding shares - basic 110,765,379 110,724,655 95,505,877 110,745,017 95,485,839
Average outstanding shares - diluted 110,794,982 110,800,001 95,580,904 110,799,368 95,565,591
Return on average assets (annualized) 1.16 % 1.06 % 1.55 % 1.11 % 1.64 %
Return on average equity (annualized) 10.55 % 8.97 % 13.25 % 9.76 % 13.68 %
Efficiency ratio 55.74 % 57.11 % 49.92 % 56.42 % 48.31 %
Dividend payout 47.83 % 54.10 % 39.51 % 50.77 % 37.95 %
Loan to deposit ratio 66.26 % 63.52 % 67.64 % 66.26 % 67.64 %
Number of full time equivalent employees 3,439 3,439 2,987 3,439 2,987
Number of locations 224 223 194 224 194
Number of ATMs 274 273 250 274 250
KALISPELL, Mont., July 21, 2022 (GLOBE NEWSWIRE) -- Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $76.4 million for the current quarter, a decrease of $1.2 million, or 2 percent, from the $77.6 million of net income for the prior year second quarter. Diluted earnings per share for the current quarter was $0.69 per share, a decrease of 15 percent from the prior year second quarter diluted earnings per share of $0.81. The $1.2 million decrease in second quarter earnings over the prior year second quarter was driven primarily by a $11.1 million decrease in gain on the sale of residential loans, a $10.3 million decrease in the PPP related income, an increase of $4.1 million of provision for credit loss, and a $976 thousand increase in acquisition-related expenses. For the quarter, the Company experienced a $38.0 million increase, or 24 percent, in net interest income and a $29.4 million increase, or 29 percent, in non-interest expense over the prior year second quarter which was driven by the acquisition of Altabancorp and its Altabank subsidiary (“Alta”). “We were very pleased to see the high quality loan and deposit growth we achieved this quarter,” said Randy Chesler, President and Chief Executive Officer. “We remain prepared to manage through economic headwinds if the economy experiences a recession and are confident in the long term resiliency of our markets and our core business.”
Net income for the six month ended June 30, 2022 was $144.2 million, a decrease of $14.2 million, or 9 percent, from the $158.4 million net income for the first six months in the prior year. Diluted earnings per share for the first half of 2022 was $1.30 per share, a decrease of 22 percent from the prior year first half earnings per share of $1.66. The $14.2 million decrease in net income over the prior year first half was driven primarily by a $25.7 million decrease in the PPP related income, a $23.7 million decrease in gain on the sale of residential loans, an increase of $11.1 million of provision for credit loss, and a $7.1 million increase in acquisition-related expenses.
Asset Summary
$ Change from
(Dollars in thousands) Jun 30,
2022 Mar 31,
2022 Dec 31,
2021 Jun 30,
2021 Mar 31,
2022 Dec 31,
2021 Jun 30,
2021
Cash and cash equivalents $ 415,406 436,805 437,686 921,207 (21,399 ) (22,280 ) (505,801 )
Debt securities, available-for-sale 6,209,199 6,535,763 9,170,849 6,147,143 (326,564 ) (2,961,650 ) 62,056
Debt securities, held-to-maturity 3,788,486 3,576,941 1,199,164 1,024,730 211,545 2,589,322 2,763,756
Total debt securities 9,997,685 10,112,704 10,370,013 7,171,873 (115,019 ) (372,328 ) 2,825,812
Loans receivable
Residential real estate 1,261,119 1,125,648 1,051,883 734,838 135,471 209,236 526,281
Commercial real estate 9,310,070 8,865,585 8,630,831 6,584,322 444,485 679,239 2,725,748
Other commercial 2,685,392 2,661,048 2,664,190 2,932,419 24,344 21,202 (247,027 )
Home equity 773,582 715,963 736,288 648,800 57,619 37,294 124,782
Other consumer 369,592 362,775 348,839 337,669 6,817 20,753 31,923
Loans receivable 14,399,755 13,731,019 13,432,031 11,238,048 668,736 967,724 3,161,707
Allowance for credit losses (172,963 ) (176,159 ) (172,665 ) (151,448 ) 3,196 (298 ) (21,515 )
Loans receivable, net 14,226,792 13,554,860 13,259,366 11,086,600 671,932 967,426 3,140,192
Other assets 2,050,122 1,995,955 1,873,580 1,308,353 54,167 176,542 741,769
Total assets $ 26,690,005 26,100,324 25,940,645 20,488,033 589,681 749,360 6,201,972
Total debt securities of $9.998 billion at June 30, 2022 decreased $115 million, or 1 percent, during the current quarter and increased $2.826 billion, or 39 percent, from the prior year second quarter. Debt securities represented 37 percent of total assets at June 30, 2022 compared to 40 percent at December 31, 2021 and 35 percent of total assets at June 30, 2021.
The loan portfolio of $14.400 billion at June 30, 2022 increased $669 million, or 5 percent, in the current quarter and increased $3.162 billion, or 28 percent, from the prior year second quarter. Excluding the PPP loans, the loan portfolio increased $714 million, or 21 percent annualized, during the current quarter with the largest dollar increase in commercial real estate which increased $444 million, or 20 percent annualized. Excluding the PPP loans and loans from the acquisition of Alta, the loan portfolio increased $1.950 billion, or 19 percent, from the prior year second quarter with the largest dollar increase in commercial real estate loans which increased $1.323 billion, or 20 percent.
The Company received $44.5 million in PPP loan forgiveness during the current quarter. As of June 30, 2022, the Company had $15.7 million of PPP loans remaining. In the current quarter, the Company recognized $1.6 million of interest income (including deferred fees and costs) from the PPP loans. The income recognized in the current quarter included $1.4 million acceleration of net deferred fees in interest income resulting from the SBA forgiveness of loans. Net deferred fees remaining on the balance of the PPP loans at June 30, 2022 was $416 thousand, which will be recognized into interest income over the remaining life of the loans or when the loans are forgiven in whole or in part by the SBA.
Credit Quality Summary
At or for the Six
Months ended At or for the
Three Months
ended At or for the
Year ended At or for the Six
Months ended
(Dollars in thousands) Jun 30,
2022 Mar 31,
2022 Dec 31,
2021 Jun 30,
2021
Allowance for credit losses
Balance at beginning of period $ 172,665 172,665 158,243 158,243
Acquisitions — — 371 —
Provision for credit losses 2,991 4,344 16,380 (5,234 )
Charge-offs (7,040 ) (2,695 ) (11,594 ) (5,946 )
Recoveries 4,347 1,845 9,265 4,385
Balance at end of period $ 172,963 176,159 172,665 151,448
Provision for credit losses
Loan portfolio $ 2,991 4,344 16,380 (5,234 )
Unfunded loan commitments 2,507 2,687 6,696 (371 )
Total provision for credit losses $ 5,498 7,031 23,076 (5,605 )
Other real estate owned $ — — — 705
Other foreclosed assets 379 43 18 66
Accruing loans 90 days or more past due 5,064 4,510 17,141 4,220
Non-accrual loans 38,523 57,923 50,532 48,050
Total non-performing assets $ 43,966 62,476 67,691 53,041
Non-performing assets as a percentage of subsidiary assets 0.16 % 0.24 % 0.26 % 0.26 %
Allowance for credit losses as a percentage of non-performing loans 393 % 282 % 255 % 290 %
Allowance for credit losses as a percentage of total loans 1.20 % 1.28 % 1.29 % 1.35 %
Net charge-offs as a percentage of total loans 0.02 % 0.01 % 0.02 % 0.01 %
Accruing loans 30-89 days past due $ 16,588 16,080 50,566 12,076
Accruing troubled debt restructurings $ 33,859 33,702 34,591 37,667
Non-accrual troubled debt restructurings $ 2,427 2,501 2,627 3,179
U.S. government guarantees included in non-performing assets $ 5,888 5,068 4,028 4,186
Non-performing assets of $44.0 million at June 30, 2022 decreased $18.5 million, or 30 percent, over the prior quarter and decreased $9.1 million, or 17 percent, over prior year second quarter. Non-performing assets as a percentage of subsidiary assets at June 30, 2022 was 0.16 percent compared to 0.24 percent in the prior quarter and 0.26 percent in the prior year second quarter.
Early stage delinquencies (accruing loans 30-89 days past due) of $16.6 million at June 30, 2022 increased $508 thousand from the prior quarter and increased $4.5 million from the prior year second quarter. Early stage delinquencies as a percentage of loans at June 30, 2022 was 12 basis points, which compared to 12 basis points in the prior quarter and 11 basis points from prior year second quarter.
The current quarter credit loss benefit of $1.5 million included $1.4 million of credit loss benefit from loans and $179 thousand of credit loss benefit from unfunded loan commitments. The allowance for credit losses on loans (“ACL”) as a percentage of total loans outstanding at June 30, 2022 was 1.20 percent which was an 8 basis point decrease compared to the prior quarter and a 15 basis points decrease from the prior year second 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
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 %
Fourth quarter 2021 19,301 616 1.29 % 0.38 % 0.26 %
Third quarter 2021 2,313 152 1.36 % 0.23 % 0.24 %
Second quarter 2021 (5,723 ) (725 ) 1.35 % 0.11 % 0.26 %
First quarter 2021 489 2,286 1.39 % 0.40 % 0.19 %
Fourth quarter 2020 (1,528 ) 4,781 1.42 % 0.20 % 0.19 %
Third quarter 2020 2,869 826 1.42 % 0.15 % 0.25 %
The current quarter provision for credit loss benefit for loans was $1.4 million which was a decrease of $5.7 million from the prior quarter which was driven by the continued improvement in the credit quality and the Company’s increased comfort with the economic forecasts. Current quarter provision for credit loss benefit for loans decreased $4.3 million from the prior year second quarter provision for credit loss benefit of $5.7 million.
Net charge-offs for the current quarter were $1.8 million compared to $850 thousand for the prior quarter and recoveries of $725 thousand from the same quarter last year. 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) Jun 30,
2022 Mar 31,
2022 Dec 31,
2021 Jun 30,
2021 Mar 31,
2022 Dec 31,
2021 Jun 30,
2021
Deposits
Non-interest bearing deposits $ 8,061,304 7,990,003 7,779,288 6,307,794 71,301 282,016 1,753,510
NOW and DDA accounts 5,432,333 5,376,881 5,301,832 4,151,264 55,452 130,501 1,281,069
Savings accounts 3,296,561 3,287,521 3,180,046 2,346,129 9,040 116,515 950,432
Money market deposit accounts 4,021,102 4,044,655 4,014,128 2,990,021 (23,553 ) 6,974 1,031,081
Certificate accounts 968,382 995,147 1,036,077 939,563 (26,765 ) (67,695 ) 28,819
Core deposits, total 21,779,682 21,694,207 21,311,371 16,734,771 85,475 468,311 5,044,911
Wholesale deposits 4,001 3,688 25,878 26,121 313 (21,877 ) (22,120 )
Deposits, total 21,783,683 21,697,895 21,337,249 16,760,892 85,788 446,434 5,022,791
Repurchase agreements 968,197 958,479 1,020,794 995,201 9,718 (52,597 ) (27,004 )
Federal Home Loan Bank advances 580,000 80,000 — — 500,000 580,000 580,000
Other borrowed funds 66,200 57,258 44,094 33,556 8,942 22,106 32,644
Subordinated debentures 132,701 132,661 132,620 132,540 40 81 161
Other liabilities 262,985 239,838 228,266 211,889 23,147 34,719 51,096
Total liabilities $ 23,793,766 23,166,131 22,763,023 18,134,078 627,635 1,030,743 5,659,688
Core deposits of $21.780 billion increased $85.5 million, or 2 percent annualized, during the current quarter and non-interest bearing deposits increased $71.3 million, or 4 percent annualized, during the current quarter. Excluding the Alta acquisition, core deposits increased $1.771 billion, or 11 percent, from the prior year second quarter. During 2020 and 2021, the Company experienced unprecedented increases in core deposits as a result of increased customer savings and federal stimulus. Non-interest bearing deposits were 37 percent of total core deposits at June 30, 2022 and December 31, 2021 compared to 38 percent at June 30, 2021.
Federal Home Loan Bank (“FHLB”) advances increased $500 million during the current quarter to support the liquidity needs driven by the increase in the loan portfolio. The FHLB advances will continue to fluctuate to supplement the liquidity needs during the year.
Stockholders’ Equity Summary
$ Change from
(Dollars in thousands, except per share data) Jun 30,
2022 Mar 31,
2022 Dec 31,
2021 Jun 30,
2021 Mar 31,
2022 Dec 31,
2021 Jun 30,
2021
Common equity $ 3,223,451 3,182,002 3,150,263 2,263,513 41,449 73,188 959,938
Accumulated other comprehensive (loss) income (327,212 ) (247,809 ) 27,359 90,442 (79,403 ) (354,571 ) (417,654 )
Total stockholders’ equity 2,896,239 2,934,193 3,177,622 2,353,955 (37,954 ) (281,383 ) 542,284
Goodwill and core deposit intangible, net (1,032,323 ) (1,034,987 ) (1,037,652 ) (564,546 ) 2,664 5,329 (467,777 )
Tangible stockholders’ equity $ 1,863,916 1,899,206 2,139,970 1,789,409 (35,290 ) (276,054 ) 74,507
Stockholders’ equity to total assets 10.85 % 11.24 % 12.25 % 11.49 %
Tangible stockholders’ equity to total tangible assets 7.26 % 7.58 % 8.59 % 8.98 %
Book value per common share $ 26.15 26.49 28.71 24.65 (0.34 ) (2.56 ) 1.50
Tangible book value per common share $ 16.83 17.15 19.33 18.74 (0.32 ) (2.50 ) (1.91 )
Tangible stockholders’ equity of $1.864 billion at June 30, 2022 decreased $35.3 million, or 2 percent, from the prior quarter which was primarily driven by an increase in the unrealized loss on the available-for-sale (“AFS”) debt securities during the current quarter which was driven by an increase in interest rates. Tangible stockholders’ equity at June 30, 2022 increased $74.5 million, or 4 percent, from the prior year second quarter which largely was the result of $840 million of Company common stock issued for the acquisition of Alta, despite the increase in goodwill and core deposit intangibles associated with the Alta acquisition and an increase in the unrealized loss on the AFS debt securities. Tangible book value per common share of $16.83 at the current quarter end decreased $0.32 per share, or 2 percent, from the prior quarter and decreased $1.91 per share, or 10 percent, from the prior year second quarter primarily as a result of the increase in the unrealized loss on AFS debt securities.
Cash Dividends
On June 29, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable July 21, 2022 to shareholders of record on July 12, 2022. The dividend was the Company’s 149th consecutive 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 June 30, 2022 *
*Compared to March 31, 2022, and June 30, 2021 *
Income Summary
Three Months ended $ Change from
(Dollars in thousands) Jun 30,
2022 Mar 31,
2022 Jun 30,
2021 Mar 31,
2022 Jun 30,
2021
Net interest income
Interest income $ 199,637 190,516 159,956 9,121 39,681
Interest expense 6,199 4,961 4,487 1,238 1,712 Total net interest income 193,438 185,555 155,469 7,883 37,969
Non-interest income
Service charges and other fees 17,309 17,111 13,795 198 3,514
Miscellaneous loan fees and charges 3,850 3,555 2,923 295 927
Gain on sale of loans 4,996 9,015 16,106 (4,019 ) (11,110 )
(Loss) Gain on sale of investments (260 ) 446 (61 ) (706 ) (199 )
Other income 2,385 3,436 2,759 (1,051 ) (374 ) Total non-interest income 28,280 33,563 35,522 (5,283 ) (7,242 ) Total income 221,718 219,118 190,991 2,600 30,727
Net interest margin (tax-equivalent) 3.23 % 3.20 % 3.44 %
Net Interest Income
The current quarter net interest income of $193 million increased $7.9 million, or 4 percent, compared to the prior quarter and increased $38.0 million, or 24 percent, from the prior year second quarter. The current quarter interest income of $200 million increased $9.1 million, or 5 percent, over the prior quarter and was driven by the increase in the loan portfolio and an increase in investment yields, both of which more than offset the decrease of $1.8 million in interest income from the PPP loans. The current quarter interest income increased $39.7 million over the prior year second quarter primarily due to $28.7 million of interest income from Altabank division and organic loan growth, which more than offset the $8.8 million decrease in interest income from the PPP loans.
The current quarter interest expense of $6.2 million increased $1.2 million, or 25 percent, over the prior quarter and increased $1.7 million, or 38 percent, over the prior year second quarter primarily the result of an increase in borrowings to support the Company’s liquidity needs. Core deposit cost was 6 basis points in the current quarter compared to 7 basis points in the prior quarter and the prior year second quarter. The total cost of funding (including non-interest bearing deposits) was 11 basis points in the current quarter compared to 9 basis points in the prior quarter and 10 basis points in the prior year second quarter which was driven by the increased borrowings.
The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.23 percent compared to 3.20 percent in the prior quarter and 3.44 percent in the prior year second quarter. The core net interest margin, excluding 4 basis points of discount accretion, 1 basis point from non-accrual interest and 2 basis points increase from the PPP loans, was 3.16 percent compared to 3.07 in the prior quarter and 3.33 percent in the prior year second quarter. The core net interest margin increased 9 basis points in the current quarter as a result of increased core loan yields and investment yields. The core loan yield of 4.41 percent in the current quarter increased 7 basis points from the prior quarter core loan yield of 4.34 percent. “We are pleased with the growth in our net interest income in the current quarter. The Bank divisions remain focused on growing a low-cost core deposit base, especially non-interest bearing deposits, in a rising rate environment,” said Ron Copher, Chief Financial Officer.
Non-interest Income
Non-interest income for the current quarter totaled $28.3 million which was a decrease of $5.3 million, or 16 percent, over the prior quarter and a decrease of $7.2 million, or 20 percent, over the same quarter last year with both decreases primarily driven by the decrease in gain on sale of residential loans. Gain on the sale of residential loans of $5.0 million for the current quarter decreased $4.0 million, or 45 percent, compared to the prior quarter and decreased $11.1 million, or 69 percent, from the prior year second quarter. The current quarter mortgage activity was lower than prior periods as a result of the continued reduction in residential purchase and refinance activity as mortgage rates continued to rise.
Non-interest Expense Summary
Three Months ended $ Change from
(Dollars in thousands) Jun 30,
2022 Mar 31,
2022 Jun 30,
2021 Mar 31,
2022 Jun 30,
2021
Compensation and employee benefits $ 79,803 79,074 64,109 729 15,694
Occupancy and equipment 10,766 10,964 9,208 (198 ) 1,558
Advertising and promotions 3,766 3,232 2,906 534 860
Data processing 7,553 7,475 5,661 78 1,892
Other real estate owned and foreclosed
assets 6 — 48 6 (42 )
Regulatory assessments and insurance 3,085 3,055 1,702 30 1,383
Core deposit intangibles amortization 2,665 2,664 2,488 1 177
Other expenses 21,877 23,844 13,960 (1,967 ) 7,917
Total non-interest expense $ 129,521 130,308 100,082 (787 ) 29,439
Total non-interest expense of $130 million for the current quarter decreased $787 thousand, or 60 basis points, over the prior quarter which was driven by a decrease in acquisition-related expenses during the current quarter. Acquisition-related expenses was $2.1 million in the current quarter compared to $6.2 million in the prior quarter and $1.1 million in the prior year second quarter.
Total non-interest expense increased $29.4 million, or 29 percent, over the prior year second quarter which was primarily driven by the acquisition of Alta. Excluding $18.3 million of non-interest expense from the Altabank division, $1.5 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $8.7 million, or 9 percent, from the prior year second quarter. The increase includes $5.2 million from compensation and employee benefits driven by the increased number of employees, annual salary increases and a $2.1 million increase in outside service expenses associated with technology infrastructure improvements.
Federal and State Income Tax Expense
Tax expense during the second quarter of 2022 was $17.3 million, an increase of $3.4 million, or 24 percent, compared to the prior quarter and a decrease of $1.6 million, or 8 percent, from the prior year second quarter. The effective tax rate in the current quarter was 18.5 percent compared to 17.1 percent in the prior quarter with the increase driven by higher taxable income. The effective tax rate in the current quarter of 18.5 percent compared to 19.6 percent in the prior year second quarter with the decrease in the current quarter attributable to lower taxable income.
Efficiency Ratio
The efficiency ratio was 55.74 percent in the current quarter compared to 57.11 percent in the prior quarter and 49.92 in the prior year second quarter. Excluding acquisition-related expenses, the efficiency ratio would have been 54.84 percent in the current quarter compared to 54.33 percent in the prior quarter and 49.37 percent in the prior year second quarter. The increase in the efficiency ratio from the prior year second quarter was driven by the decrease in gain on the sale of residential loans, the decrease in income from the PPP loans and the increase in non-interest expense.
*Operating Results for Six Months Ended June 30, 2022*
*Compared to June 30, 2021*
Income Summary
Six Months ended
(Dollars in thousands) Jun 30,
2022 Jun 30,
2021 $ Change % Change
Net interest income
Interest income $ 390,153 $ 321,508 $ 68,645 21 %
Interest expense 11,160 9,227 1,933 21 % Total net interest income 378,993 312,281 66,712 21 %
Non-interest income
Service charges and other fees 34,420 26,587 7,833 29 %
Miscellaneous loan fees and charges 7,405 5,701 1,704 30 %
Gain on sale of loans 14,011 37,730 (23,719 ) (63) %
Gain on sale of investments 186 223 (37 ) (17) %
Other income 5,821 5,402 419 8 % Total non-interest income 61,843 75,643 (13,800 ) (18) % Total Income $ 440,836 $ 387,924 $ 52,912 14 %
Net interest margin (tax-equivalent) 3.21 % 3.58 %
Net Interest Income
Net-interest income of $379 million for the first half of 2022 increased $66.7 million, or 21 percent, over the same period in 2021. Interest income of $390 million for the first six months of the current year increased $68.6 million, or 21 percent, from the prior year and was primarily attributable to $58.9 million of interest income from Alta division and organic growth. Interest expense of $11.2 million for the first half of 2022 increased $1.9 million, or 21 percent over the prior year. The total funding cost (including non-interest bearing deposits) for the first six months of 2022 was 10 basis points, which decreased 1 basis point compared to 11 basis points in first six months of 2021.
The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during the first half of 2022 was 3.21 percent, a 37 basis points decrease from the net interest margin of 3.58 percent for the same period in the prior year. The core net interest margin, excluding 6 basis points of discount accretion, 1 basis point of non-accrual interest and 3 basis points increase from the PPP loans, was 3.11 which was a 32 basis point decrease from the core margin of 3.43 percent in the prior year.
Non-interest Income
Non-interest income of $61.8 million for the first half of 2022 decreased $13.8 million, or 18 percent, over the same period last year and was primarily attributable to the $23.7 million, or 63 percent, decrease in gain on sale of residential loans. Service charges and other fees of $34.4 million for the first six months of 2022 increased $7.8 million, or 29 percent, from prior year as a result of additional fees from increased customer accounts, transaction activity and the acquisition of Alta. Miscellaneous loan fees and charges increased $1.7 million, or 30 percent, primarily driven by increases in credit card interchange fees due to increased activity.
Non-interest Expense Summary
Six Months ended
(Dollars in thousands) Jun 30,
2022 Jun 30,
2021 $ Change % Change
Compensation and employee benefits $ 158,877 $ 126,577 $ 32,300 26 %
Occupancy and equipment 21,730 18,723 3,007 16 %
Advertising and promotions 6,998 5,277 1,721 33 %
Data processing 15,028 10,867 4,161 38 %
Other real estate owned and foreclosed assets 6 60 (54 ) (90) %
Regulatory assessments and insurance 6,140 3,581 2,559 71 %
Core deposit intangibles amortization 5,329 4,976 353 7 %
Other expenses 45,721 26,606 19,115 72 %
Total non-interest expense $ 259,829 $ 196,667 $ 63,162 32 %
Total non-interest expense of $260 million for the first half of 2022 increased $63.2 million, or 32 percent, over the prior year first half. Excluding $41.6 million of non-interest expense from the Altabank division, $6.7 million from deferred compensation on the PPP loans in the prior year, and acquisition-related expenses, non-interest expense increased $14.8 million, or 8 percent, from the prior year first half. Excluding the Alta division, compensation and employee benefits increased $13.5 million, or 11 percent, from prior year due to increased number of employees and annual salary increases. Other expenses increased $19.1 million and was primarily driven by expenses related to the Alta division and a $7.1 million increase in acquisition related expenses. Acquisition-related expenses were $8.3 million in the current year compared to $1.2 million in the prior year.
Provision for Credit Losses
The provision for credit loss expense was $5.5 million for the first six months of 2022, including provision for credit loss expense of $3.0 million on the loan portfolio and credit loss expense of $2.5 million on unfunded loan commitments. The provision for credit loss expense of $3.0 million on the loan portfolio in the current year increased $8.2 million over the provision for credit loss benefit of $5.2 million in the prior year which was primarily attributable to organic loan growth. Net charge-offs during the current year were $2.7 million compared to $1.6 million during the prior year.
Federal and State Income Tax Expense
Tax expense of $31.3 million in the first six months of 2022 decreased $7.1 million, or 19 percent, over the prior year same period. The effective tax rate for 2022 was 17.8 percent compared to 19.5 percent in the prior year.
Efficiency Ratio
The efficiency ratio was 56.42 percent for the first six months of 2022 compared to 48.31 percent for the same period last year. Excluding the impact from the PPP loans and acquisition related expenses, the efficiency ratio was 55.19 in 2022 compared to 52.89 in 2021 with the increase driven by the decrease in gain on the sale of residential loans and the increase in non-interest expense.
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 the negative version of those words 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 subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those set forth in this news release:
· the risks associated with lending and potential adverse changes in the credit quality of loans in the Company’s portfolio;
· changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin and overall profitability;
· legislative or regulatory changes, such as the those signaled by the Biden Administration, as well as increased banking and consumer protection regulation, that may adversely affect the Company’s business;
· ability to complete pending or prospective future acquisitions;
· costs or difficulties related to the completion and integration of acquisitions;
· the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital;
· reduced demand for banking products and services;
· the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain and maintain customers;
· competition among financial institutions in the Company's markets may increase significantly;
· the 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 the Company through acquisitions;
· the projected business and profitability of an expansion or the opening of a new branch could be lower than expected;
· consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape;
· dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank divisions;
· material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures;
· natural disasters, including fires, floods, earthquakes, and other unexpected events;
· the Company’s success in managing risks involved in the foregoing; and
· the 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, July 22, 2022. The conference call will be accessible by telephone and webcast. Investors who would like to call may now register by following this link to obtain dial-in instructions: https://register.vevent.com/register/BI5ae3db12b0eb47b58e17e4348de70584. To participate on the webcast, log on to: https://edge.media-server.com/mmc/p/8mhnune6. 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) Jun 30,
2022 Mar 31,
2022 Dec 31,
2021 Jun 30,
2021
*Assets*
Cash on hand and in banks $ 293,541 282,335 198,087 272,363
Interest bearing cash deposits 121,865 154,470 239,599 648,844 Cash and cash equivalents 415,406 436,805 437,686 921,207
Debt securities, available-for-sale 6,209,199 6,535,763 9,170,849 6,147,143
Debt securities, held-to-maturity 3,788,486 3,576,941 1,199,164 1,024,730 Total debt securities 9,997,685 10,112,704 10,370,013 7,171,873
Loans held for sale, at fair value 33,837 51,284 60,797 98,410
Loans receivable 14,399,755 13,731,019 13,432,031 11,238,048
Allowance for credit losses (172,963 ) (176,159 ) (172,665 ) (151,448 ) Loans receivable, net 14,226,792 13,554,860 13,259,366 11,086,600
Premises and equipment, net 386,198 373,123 372,597 315,573
Other real estate owned and foreclosed assets 379 43 18 771
Accrued interest receivable 80,339 81,467 76,673 70,452
Deferred tax asset 147,263 120,025 27,693 —
Core deposit intangible, net 46,930 49,594 52,259 50,533
Goodwill 985,393 985,393 985,393 514,013
Non-marketable equity securities 33,215 13,217 10,020 10,019
Bank-owned life insurance 168,231 167,298 167,671 123,035
Other assets 168,337 154,511 120,459 125,547 Total assets $ 26,690,005 26,100,324 25,940,645 20,488,033
*Liabilities*
Non-interest bearing deposits $ 8,061,304 7,990,003 7,779,288 6,307,794
Interest bearing deposits 13,722,379 13,707,892 13,557,961 10,453,098
Securities sold under agreements to repurchase 968,197 958,479 1,020,794 995,201
FHLB advances 580,000 80,000 — —
Other borrowed funds 66,200 57,258 44,094 33,556
Subordinated debentures 132,701 132,661 132,620 132,540
Accrued interest payable 2,334 2,284 2,409 2,433
Deferred tax liability — — — 6,463
Other liabilities 260,651 237,554 225,857 202,993 Total liabilities 23,793,766 23,166,131 22,763,023 18,134,078
*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 1,108 1,108 1,107 955
Paid-in capital 2,341,097 2,339,405 2,338,814 1,496,488
Retained earnings - substantially restricted 881,246 841,489 810,342 766,070
Accumulated other comprehensive (loss) income (327,212 ) (247,809 ) 27,359 90,442 Total stockholders’ equity 2,896,239 2,934,193 3,177,622 2,353,955 Total liabilities and stockholders’ equity $ 26,690,005 26,100,324 25,940,645 20,488,033
*Glacier Bancorp, Inc.*
*Unaudited Condensed Consolidated Statements of Operations*
Three Months ended Six Months ended
(Dollars in thousands, except per share data) Jun 30,
2022 Mar 31,
2022 Jun 30,
2021 Jun 30,
2022 Jun 30,
2021
*Interest Income*
Debt securities $ 42,841 38,654 28,730 81,495 56,036
Residential real estate loans 13,026 15,515 9,541 28,541 19,687
Commercial loans 131,259 124,556 110,829 255,815 224,370
Consumer and other loans 12,511 11,791 10,856 24,302 21,415 Total interest income 199,637 190,516 159,956 390,153 321,508
*Interest Expense*
Deposits 3,141 3,464 2,804 6,605 5,818
Securities sold under agreements to
repurchase 367 393 651 760 1,340
Federal Home Loan Bank advances 1,298 12 — 1,310 —
Other borrowed funds 264 220 177 484 351
Subordinated debentures 1,129 872 855 2,001 1,718 Total interest expense 6,199 4,961 4,487 11,160 9,227
*Net Interest Income* 193,438 185,555 155,469 378,993 312,281
Provision for credit losses (1,533 ) 7,031 (5,653 ) 5,498 (5,605 ) Net interest income after provision for credit losses 194,971 178,524 161,122 373,495 317,886
*Non-Interest Income*
Service charges and other fees 17,309 17,111 13,795 34,420 26,587
Miscellaneous loan fees and charges 3,850 3,555 2,923 7,405 5,701
Gain on sale of loans 4,996 9,015 16,106 14,011 37,730
(Loss) Gain on sale of debt securities (260 ) 446 (61 ) 186 223
Other income 2,385 3,436 2,759 5,821 5,402 Total non-interest income 28,280 33,563 35,522 61,843 75,643
*Non-Interest Expense*
Compensation and employee benefits 79,803 79,074 64,109 158,877 126,577
Occupancy and equipment 10,766 10,964 9,208 21,730 18,723
Advertising and promotions 3,766 3,232 2,906 6,998 5,277
Data processing 7,553 7,475 5,661 15,028 10,867
Other real estate owned and foreclosed
assets 6 — 48 6 60
Regulatory assessments and insurance 3,085 3,055 1,702 6,140 3,581
Core deposit intangibles amortization 2,665 2,664 2,488 5,329 4,976
Other expenses 21,877 23,844 13,960 45,721 26,606 Total non-interest expense 129,521 130,308 100,082 259,829 196,667
*Income Before Income Taxes* 93,730 81,779 96,562 175,509 196,862
Federal and state income tax expense 17,338 13,984 18,935 31,322 38,433
*Net Income* $ 76,392 67,795 77,627 144,187 158,429
*Glacier Bancorp, Inc.*
*Average Balance Sheets*
Three Months ended June 30, 2022 March 31, 2022
(Dollars in thousands) Average
Balance Interest &
Dividends Average
Yield/
Rate Average
Balance Interest &
Dividends Average
Yield/
Rate
*Assets*
Residential real estate loans $ 1,229,013 $ 13,026 4.24 % $ 1,140,224 $ 15,515 5.44 %
Commercial loans ^1 11,712,381 132,799 4.55 % 11,318,767 125,919 4.51 %
Consumer and other loans 1,107,396 12,511 4.53 % 1,075,102 11,791 4.45 %
Total loans ^2 14,048,790 158,336 4.52 % 13,534,093 153,225 4.59 %
Tax-exempt debt securities ^3 1,979,865 18,413 3.72 % 1,723,125 15,664 3.64 %
Taxable debt securities ^4 8,685,641 28,473 1.31 % 8,883,211 26,465 1.19 %
Total earning assets 24,714,296 205,222 3.33 % 24,140,429 195,354 3.28 %
Goodwill and intangibles 1,033,601 1,036,315
Non-earning assets 619,671 756,422
Total assets $ 26,367,568 $ 25,933,166
*Liabilities*
Non-interest bearing deposits $ 7,991,993 $ — — % $ 7,859,706 $ — — %
NOW and DDA accounts 5,405,470 723 0.05 % 5,279,984 845 0.06 %
Savings accounts 3,261,798 244 0.03 % 3,246,512 332 0.04 %
Money market deposit accounts 3,999,582 1,369 0.14 % 4,030,795 1,381 0.14 %
Certificate accounts 982,397 797 0.33 % 1,019,595 897 0.36 %
Total core deposits 21,641,240 3,133 0.06 % 21,436,592 3,455 0.07 %
Wholesale deposits ^5 3,877 8 0.71 % 17,191 9 0.22 %
Repurchase agreements 923,459 367 0.16 % 970,544 393 0.16 %
FHLB advances 476,978 1,298 1.08 % 15,000 12 0.33 %
Subordinated debentures and other borrowed funds 190,072 1,393 2.94 % 179,725 1,092 2.46 %
Total funding liabilities 23,235,626 6,199 0.11 % 22,619,052 4,961 0.09 %
Other liabilities 235,814 249,316
Total liabilities 23,471,440 22,868,368
*Stockholders’ Equity*
Common stock 1,108 1,107
Paid-in capital 2,340,059 2,338,887
Retained earnings 875,276 847,172
Accumulated other comprehensive (loss) income (320,315 ) (122,368 )
Total stockholders’ equity 2,896,128 3,064,798 Total liabilities and stockholders’ equity $ 26,367,568 $ 25,933,166
Net interest income (tax-equivalent) $ 199,023 $ 190,393
Net interest spread (tax-equivalent) 3.22 % 3.19 %
Net interest margin (tax-equivalent) 3.23 % 3.20 %
______________________________
^1 Includes tax effect of $1.5 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2022 and March 31, 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 $3.8 million and $3.3 million on tax-exempt debt securities income for the three months ended June 30, 2022 and March 31, 2022, respectively.
^4 Includes tax effect of $226 thousand and $225 thousand on federal income tax credits for the three months ended June 30, 2022 and March 31, 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)*
Three Months ended June 30, 2022 June 30, 2021
(Dollars in thousands) Average
Balance Interest &
Dividends Average
Yield/
Rate Average
Balance Interest &
Dividends Average
Yield/
Rate
*Assets*
Residential real estate loans $ 1,229,013 $ 13,026 4.24 % $ 825,467 $ 9,541 4.62 %
Commercial loans ^1 11,712,381 132,799 4.55 % 9,520,603 112,226 4.73 %
Consumer and other loans 1,107,396 12,511 4.53 % 964,415 10,856 4.51 %
Total loans ^2 14,048,790 158,336 4.52 % 11,310,485 132,623 4.70 %
Tax-exempt debt securities ^3 1,979,865 18,413 3.72 % 1,548,323 14,740 3.81 %
Taxable debt securities ^4 8,685,641 28,473 1.31 % 5,810,800 17,251 1.19 %
Total earning assets 24,714,296 205,222 3.33 % 18,669,608 164,614 3.54 %
Goodwill and intangibles 1,033,601 565,749
Non-earning assets 619,671 804,897
Total assets $ 26,367,568 $ 20,040,254
*Liabilities*
Non-interest bearing deposits $ 7,991,993 $ — — % $ 6,100,872 $ — — %
NOW and DDA accounts 5,405,470 723 0.05 % 4,073,819 600 0.06 %
Savings accounts 3,261,798 244 0.03 % 2,295,334 141 0.02 %
Money market deposit accounts 3,999,582 1,369 0.14 % 2,921,642 861 0.12 %
Certificate accounts 982,397 797 0.33 % 955,694 1,181 0.50 %
Total core deposits 21,641,240 3,133 0.06 % 16,347,361 2,783 0.07 %
Wholesale deposits ^5 3,877 8 0.71 % 34,301 21 0.24 %
Repurchase agreements 923,459 367 0.16 % 974,744 651 0.27 %
FHLB advances 476,978 1,298 1.08 % — — — %
Subordinated debentures and other borrowed funds 190,072 1,393 2.94 % 166,002 1,032 2.49 %
Total funding liabilities 23,235,626 6,199 0.11 % 17,522,408 4,487 0.10 %
Other liabilities 235,814 168,613
Total liabilities 23,471,440 17,691,021
*Stockholders’ Equity*
Common stock 1,108 955
Paid-in capital 2,340,059 1,495,886
Retained earnings 875,276 756,561
Accumulated other comprehensive (loss) income (320,315 ) 95,831
Total stockholders’ equity 2,896,128 2,349,233
Total liabilities and stockholders’ equity $ 26,367,568 $ 20,040,254
Net interest income (tax-equivalent) $ 199,023 $ 160,127
Net interest spread (tax-equivalent) 3.22 % 3.44 %
Net interest margin (tax-equivalent) 3.23 % 3.44 %
______________________________
^1 Includes tax effect of $1.5 million and $1.4 million on tax-exempt municipal loan and lease income for the three months ended June 30, 2022 and 2021, 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 $3.8 million and $3.0 million on tax-exempt debt securities income for the three months ended June 30, 2022 and 2021, respectively.
^4 Includes tax effect of $226 thousand and $255 thousand on federal income tax credits for the three months ended June 30, 2022 and 2021, 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)*
Six Months ended June 30, 2022 June 30, 2021
(Dollars in thousands) Average
Balance Interest &
Dividends Average
Yield/
Rate Average
Balance Interest &
Dividends Average
Yield/
Rate
*Assets*
Residential real estate loans $ 1,184,864 $ 28,541 4.82 % $ 859,073 $ 19,687 4.58 %
Commercial loans ^1 11,516,661 258,718 4.53 % 9,466,763 227,154 4.84 %
Consumer and other loans 1,091,338 24,302 4.49 % 957,116 21,415 4.51 %
Total loans ^2 13,792,863 311,561 4.56 % 11,282,952 268,256 4.79 %
Tax-exempt debt securities ^3 1,852,204 34,077 3.68 % 1,546,912 29,450 3.81 %
Taxable debt securities ^4 8,783,881 54,938 1.25 % 5,265,398 33,102 1.26 %
Total earning assets 24,428,948 400,576 3.31 % 18,095,262 330,808 3.69 %
Goodwill and intangibles 1,034,951 566,979
Non-earning assets 687,668 823,973
Total assets $ 26,151,567 $ 19,486,214
*Liabilities*
Non-interest bearing deposits $ 7,926,215 $ — — % $ 5,847,608 $ — — %
NOW and DDA accounts 5,343,074 1,568 0.06 % 3,953,009 1,170 0.06 %
Savings accounts 3,254,197 576 0.04 % 2,194,485 279 0.03 %
Money market deposit accounts 4,015,102 2,750 0.14 % 2,821,014 1,726 0.12 %
Certificate accounts 1,000,893 1,694 0.34 % 963,595 2,603 0.54 %
Total core deposits 21,539,481 6,588 0.06 % 15,779,711 5,778 0.07 %
Wholesale deposits ^5 10,497 17 0.31 % 36,178 40 0.22 %
Repurchase agreements 946,872 760 0.16 % 987,995 1,340 0.27 %
FHLB advances 247,265 1,310 1.05 % — — — %
Subordinated debentures and other borrowed funds 184,927 2,485 2.71 % 165,917 2,069 2.51 %
Total funding liabilities 22,929,042 11,160 0.10 % 16,969,801 9,227 0.11 %
Other liabilities 242,528 181,166
Total liabilities 23,171,570 17,150,967
*Stockholders’ Equity*
Common stock 1,107 955
Paid-in capital 2,339,476 1,495,514
Retained earnings 861,302 733,478
Accumulated other comprehensive income (221,888 ) 105,300
Total stockholders’ equity 2,979,997 2,335,247
Total liabilities and stockholders’ equity $ 26,151,567 $ 19,486,214
Net interest income (tax-equivalent) $ 389,416 $ 321,581
Net interest spread (tax-equivalent) 3.21 % 3.58 %
Net interest margin (tax-equivalent) 3.21 % 3.58 %
______________________________
^1 Includes tax effect of $2.9 million and $2.8 million on tax-exempt municipal loan and lease income for the six months ended June 30, 2022 and 2021, 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 $7.1 million and $6.0 million on tax-exempt debt securities income for the six months ended June 30, 2022 and 2021, respectively.
^4 Includes tax effect of $451 thousand and $510 thousand on federal income tax credits for the six months ended June 30, 2022 and 2021, 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) Jun 30,
2022 Mar 31,
2022 Dec 31,
2021 Jun 30,
2021 Mar 31,
2022 Dec 31,
2021 Jun 30,
2021
Custom and owner occupied construction $ 282,916 $ 265,579 $ 263,758 $ 158,405 7 % 7 % 79 %
Pre-sold and spec construction 269,568 258,429 257,568 163,740 4 % 5 % 65 %
*Total residential construction* *552,484* *524,008* *521,326* *322,145* *5* *%* *6* *%* *72* *%*
Land development 201,607 180,270 185,200 111,736 12 % 9 % 80 %
Consumer land or lots 197,394 184,217 173,305 138,292 7 % 14 % 43 %
Unimproved land 101,266 90,498 81,064 63,469 12 % 25 % 60 %
Developed lots for operative builders 68,087 61,276 41,840 27,143 11 % 63 % 151 %
Commercial lots 95,958 98,403 99,418 64,664 (2 )% (3 )% 48 %
Other construction 931,000 833,218 762,970 554,548 12 % 22 % 68 %
*Total land, lot, and other construction* *1,595,312* *1,447,882* *1,343,797* *959,852* *10* *%* *19* *%* *66* *%*
Owner occupied 2,747,152 2,675,681 2,645,841 2,019,860 3 % 4 % 36 %
Non-owner occupied 3,333,915 3,190,519 3,056,658 2,436,672 4 % 9 % 37 %
*Total commercial real estate* *6,081,067* *5,866,200* *5,702,499* *4,456,532* *4* *%* *7* *%* *36* *%*
*Commercial and industrial* *1,353,248* *1,378,500* *1,463,022* *1,654,237* *(2* *)*%** *(8* *)*%** *(18* *)*%**
*Agriculture* *758,394* *731,248* *751,185* *746,678* *4* *%* *1* *%* *2* *%*
1st lien 1,596,878 1,466,279 1,393,267 1,105,579 9 % 15 % 44 %
Junior lien 34,149 33,438 34,830 38,029 2 % (2 )% (10 )%
*Total 1-4 family* *1,631,027* *1,499,717* *1,428,097* *1,143,608* *9* *%* *14* *%* *43* *%*
*Multifamily residential* *562,480* *545,483* *545,001* *398,499* *3* *%* *3* *%* *41* *%*
Home equity lines of credit 820,721 753,362 761,990 693,135 9 % 8 % 18 %
Other consumer 213,943 207,827 207,513 20