Glacier Bancorp, Inc. Announces Results for Quarter and Year Ended December 31, 2009

Jan 28, 2010, 19:00 ET from Glacier Bancorp, Inc.

KALISPELL, Mont., Jan. 28 /PRNewswire-FirstCall/ --

HIGHLIGHTS:

  • Net earnings for the quarter of $9.474 million and year-to-date of $34.374 million.
  • Diluted earnings per share of $0.15 for the quarter and $0.56 year-to-date.
  • Acquisition of First National Bank & Trust completed as of October 2, 2009 resulting in a one-time $3.5 million bargain purchase gain.
  • Provision for loan losses increased to $37 million for the quarter and $125 million for the year bringing the allowance for loan losses to 3.46 percent of loans.
  • Net interest income increased $6 million, or 10 percent, from last year's fourth quarter and increased $33 million, or 15 percent, from last year's twelve months.
  • Net interest margin (tax equivalent) of 4.82 percent, up 12 basis points, from last year's twelve months.
  • Efficiency ratio of 51 percent for the year, an improvement of 1 percentage point from last year, excluding non-recurring items.

    
    
    Results Summary                    
    ($ in thousands, except        Three months             Twelve months
     per share data)            ended December 31,       ended December 31,   
                                ------------------       ------------------   
                              (unaudited)  (unaudited)  (unaudited)  (audited)
                                  2009         2008         2009       2008 
                                  ----         ----         ----       ---- 
                                                                             
    Net earnings                 $9,474      $17,014      $34,374    $65,657 
    Diluted earnings per                                                     
     share                        $0.15        $0.29        $0.56      $1.19 
    Return on average                                                        
     assets (annualized)           0.62%        1.27%        0.60%      1.31%
    Return on average                                                        
     equity (annualized)           5.43%       11.02%        4.97%     11.63%

Glacier Bancorp, Inc. (Nasdaq: GBCI) reported net earnings of $9.474 million for the fourth quarter, a decrease of $7.540 million, or 44 percent, from the $17.014 million net earnings reported for the fourth quarter of 2008.  The diluted earnings per share of $0.15 for the quarter represented a 48 percent decrease from the diluted earnings per share of $0.29 for the same quarter of 2008. Annualized return on average assets and return on average equity for the fourth quarter were 0.62 percent and 5.43 percent, which compares with prior year returns for the fourth quarter of 1.27 percent and 11.02 percent, respectively.

Net earnings for the twelve months ended December 31, 2009 were $34.374 million, which is a decrease of $31.283 million, or 48 percent, over the prior year.  Diluted earnings per share of $0.56, is a decrease of 53 percent from the $1.19 earned in 2008.  

"It was great to finally complete the transaction with First Company and its subsidiary First National Bank & Trust.  We are excited to have the Nelson family and all the staff become a part of Glacier Bancorp, Inc.  We expect it to be an excellent addition," said Mick Blodnick, President and Chief Executive Officer.  "The transaction however did make for a noisy quarter as the bargain purchase and security gains elevated our earnings." Blodnick said.  "Although our earnings were much better than the previous quarter, we were still disappointed with the results.  One bright spot however continues to be our pre-tax pre-provision earnings."

The results of operations and financial condition include the acquisition of First Company and its subsidiary First National Bank & Trust ("First National") from October 2, 2009.  Cash of $621 thousand and 99,995 shares of the Company's common stock were issued in the acquisition.  The Company also contributed $15.3 million in capital to the bank.  The acquisition resulted in a $3.5 million one-time bargain purchase gain which was based on the estimated fair value of the assets acquired and liabilities assumed.  The following table provides information on the fair value of selected classifications of assets and liabilities acquired.

    
    
                                      First National
    (Unaudited - $ in thousands)       Bank & Trust 
                                       ------------ 
                                                   
    Total assets                           $272,280
    Investments, including fed funds         60,802
    Loans                                   160,538
    Non-interest bearing deposits            39,221
    Interest bearing deposits               197,308
    Borrowed funds                           26,686

As reflected in the following table, total assets at December 31, 2009 were $6.192 billion, which is $638 million, or 11 percent, greater than the total assets of $5.554 billion at December 31, 2008.

    
    
                                   December 31,   December 31,  $ Change From
                                       2009          2008         December 31,
    Assets  ($ in thousands)       (unaudited)     (audited)          2008 
                                   -----------     ---------          ---- 
                                                                            
    Cash on hand and in banks         $120,731      $125,123        $(4,392)
    Investments, interest bearing                                           
     deposits, FHLB stock, FRB
     stock, and fed funds            1,596,238     1,000,224        596,014 
    Loans:                                                                  
       Real estate                     797,626       838,375        (40,749)
       Commercial                    2,613,218     2,575,828         37,390 
       Consumer and other              719,401       715,990          3,411 
                                       -------       -------          ----- 
          Total loans                4,130,245     4,130,193             52 
       Allowance for loan and                                               
        lease losses                  (142,927)      (76,739)       (66,188)
                                      --------       -------        ------- 
          Total loans net of                                                
           allowance for                                                    
           loan and lease losses     3,987,318     4,053,454        (66,136)
                                     ---------     ---------        ------- 
    Other assets                       487,508       375,169        112,339 
                                       -------       -------        ------- 
       Total Assets                 $6,191,795    $5,553,970       $637,825 
                                    ==========    ==========       ======== 

At December 31, 2009, total loans were $4.130 billion, an increase of $84 million over total loans of $4.046 billion at September 30, 2009 and an increase of $52 thousand over total loans at December 31, 2008.  Real estate loans increased $10 million, or 1 percent, during the fourth quarter.  Consumer loans, which are primarily comprised of home equity loans, increased by $19 million, or 3 percent, and commercial loans increased by $55 million, or 2 percent, during the fourth quarter of 2009.  Excluding the loan growth of $153 million attributable to the acquisition of First National, the loan portfolio decreased organically 4 percent for 2009 and 2 percent during the fourth quarter, primarily the result of decreased loan demand.  

Investment securities, including interest bearing deposits in other financial institutions and federal funds sold, have increased $334 million, or 26 percent, from September 30, 2009 and increased $596 million, or 60 percent, from December 31, 2008.  The increase in investments for the fourth quarter includes $112 million for First National.  Investment securities represented 26 percent of total assets at December 31, 2009 versus 18 percent of total assets at December 31, 2008. The Company continues to purchase investment securities when loan originations slow.

    
    
                                      December 31,  December 31, $ Change From
                                          2009          2008      December 31,
    Liabilities  ($ in thousands)     (unaudited)    (audited)        2008 
                                      -----------    ---------        ---- 
                                                                             
    Non-interest bearing deposits        $810,550     $747,439       $63,111 
    Interest bearing deposits           3,289,602    2,515,036       774,566 
    Advances from Federal Home Loan                                          
     Bank                                 790,367      338,456       451,911 
    Federal Reserve Bank Discount                                            
     Window                               225,000      914,000      (689,000)
    Securities sold under agreements                                         
     to repurchase and other borrowed                                         
     funds                                226,251      196,731        29,520 
    Other liabilities                      39,147       44,331        (5,184)
    Subordinated debentures               124,988      121,037         3,951 
                                          -------      -------         ----- 
         Total liabilities             $5,505,905   $4,877,030      $628,875 
                                       ==========   ==========      ======== 

As of December 31, 2009, non-interest bearing deposits increased $9 million, or 1 percent, since September 30, 2009 and increased $63 million, or 8 percent, since December 31, 2008.  Interest bearing deposits of $3.290 billion at December 31, 2009 includes wholesale deposits of $351 million, of which $151 million are issued through the Certificate of Deposit Account Registry System.  Interest bearing deposits increased $480 million, or 17 percent from September 30, 2009, of which $117 million is from wholesale deposits.  Interest bearing deposits increased $775 million, or 31 percent from December 31, 2008, of which $321 million is from wholesale deposits.  The increase in non-interest bearing deposits and interest bearing deposits includes $41 million and $206 million, respectively, for First National as of year end.  "One of our strategic initiatives in 2009 was to focus on deposit growth and capture additional market share," Blodnick said.  "The banks did an excellent job of not only growing their deposits, but at the same time controlling their cost of funds."

Federal Home Loan Bank ("FHLB") advances increased $150 million, or 23 percent, from September 30, 2009 and increased $452 million, or 134 percent, from December 31, 2008.  Federal Reserve Bank Discount Window borrowings decreased $145 million, or 39 percent, from September 30, 2009 and decreased $689 million, or 75 percent, from December 31, 2008.  Repurchase agreements and other borrowed funds were $226 million at December 31, 2009, an increase of $668 thousand from September 30, 2009 and an increase of $30 million, or 15 percent, from December 31, 2008.  

    
    
                                  
    Stockholders' equity           December 31,   December 31,   $ Change From
    ($ in thousands except per         2009           2008        December 31,
     share data)                   (unaudited)     (audited)          2008 
                                   -----------     ---------          ---- 
                                                                            
    Common equity                     $686,238      $678,183         $8,055 
    Accumulated other                                                       
     comprehensive loss                   (348)       (1,243)           895 
                                          ----        ------            --- 
       Total stockholders' equity      685,890       676,940          8,950 
    Goodwill and core deposit                                               
     intangible, net                  (160,196)     (159,765)          (431)
                                      --------      --------           ---- 
       Tangible stockholders'                                               
        equity                        $525,694      $517,175         $8,519 
                                      ========      ========         ====== 
                                                                            
    Stockholders' equity to total                                           
     assets                              11.08%        12.19%               
    Tangible stockholders' equity                                           
     to total tangible assets             8.72%         9.59%               
    Book value per common share         $11.13        $11.04          $0.09 
    Tangible book value per                                                 
     common share                        $8.53         $8.43          $0.10 
    Market price per share at end                                           
     of period                          $13.72        $19.02         $(5.30)

Total stockholders' equity and book value per share amounts have increased $9 million and $0.09 per share, respectively, from December 31, 2008, the result of earnings retention, exercised stock options, decrease in accumulated comprehensive loss, and stock issued in connection with the First National acquisition.  Tangible stockholders' equity has increased $9 million, or 2 percent since December 31, 2008, with tangible stockholders' equity at 8.72 percent of total tangible assets at December 31, 2009, down from 9.59 percent at December 31, 2008.  Accumulated other comprehensive loss, representing net unrealized losses (net of tax) on investment securities designated as available for sale, decreased $1 million from December 31, 2008.  "Our capital levels continue to be a real strength for the Company," Blodnick said.  "Not only are our capital levels well above the regulatory well capitalized requirements, but during a year of crisis for the banking industry we increased our capital while maintaining the level of our dividend and avoiding the need to participate in the Troubled Asset Relief Program (TARP)."

    
    
    
        Operating Results for Three Months Ended December 31, 2009
        ----------------------------------------------------------
           Compared to September 30, 2009 and December 31, 2008
           ----------------------------------------------------
    
    Revenue summary                                      
    ($ in thousands)             Three months ended      
                                 ------------------      
                      December 31,  September 30,  December 31,            
                          2009          2009          2008                
                      (unaudited)   (unaudited)   (unaudited)             
                      -----------   -----------   -----------              
    Net interest income     
       Interest income  $78,112        $74,430      $76,707                
       Interest                                                            
        expense          14,273         13,801       18,599                
                         ------         ------       ------                
          Net interest      
           income        63,839         60,629       58,108                
                                                                           
    Non-interest  
     income                                                                
       Service charges,
        loan fees, and        
        other fees       12,212         12,103       11,522                
       Gain on sale                                                        
        of loans          6,089          5,613        3,195                
       Gain on sale of                                                     
        investments       3,328          2,667            -                
       Other income       4,450          1,317          920                
                          -----          -----          ---                
          Total non-                                                       
           interest
           income        26,079         21,700       15,637                
                         ------         ------       ------                
                        $89,918        $82,329      $73,745                
                        =======        =======      =======                
                                                                           
    Tax equivalent net                                                     
     interest margin       4.70%          4.80%        4.81%               
                           ====           ====         ====                
                                                                           
                                                                           
    ($ in thousands) $ Change From  $ Change From % Change From  % Change From
                      September 30,  December 31,  September 30,  December 31,
                           2009          2008           2009          2008 
                           ----          ----           ----          ---- 
    Net interest income                                                     
       Interest income   $3,682         $1,405            5%             2%
       Interest                                                             
        expense             472         (4,326)           3%           -23%
                            ---         ------                             
          Net interest     
           income         3,210          5,731            5%            10%
                                                                           
    Non-interest                                                          
     income                                                                
       Service charges, 
        loan fees, and     
        other fees          109            690            1%             6%
       Gain on sale of 
        loans               476          2,894            8%            91%
       Gain on sale of                                                     
        investments         661          3,328           25%           n/m 
       Other income       3,133          3,530          238%           384%
                          -----          -----                             
          Total non-                                                       
           interest
           income         4,379         10,442           20%            67%
                          -----         ------                             
                         $7,589        $16,173            9%            22%
                         ======        =======                             
        n/m - not measurable                                               

Net Interest Income

Net interest income for the current quarter increased $3.2 million with interest income increasing $3.7 million, or 5 percent, compared to the prior quarter.  Net interest income for the year increased $6 million, or 10 percent, with interest expense decreasing $4 million, or 23 percent, over the same period in 2008.  The decrease in total interest expense from the prior year fourth quarter is attributable to rate decreases in interest bearing deposits and lower cost borrowings.  The current quarter net interest margin as a percentage of earning assets, on a tax equivalent basis, was 4.70 percent which is 10 basis points lower than the 4.80 percent achieved for the prior quarter, and 11 basis points lower than the 4.81 percent result for the fourth quarter of 2008.  "Since hitting a high of 4.92 percent in the first quarter of 2009, our net interest margin as expected has experienced some compression the last three quarters," said Ron Copher, Chief Financial Officer. "Higher levels of non accruing loans and the growth of our investment portfolio that carries lower yields were the main reasons for the reduction."

Non-interest Income

Non-interest income for the current quarter totaled $26 million, an increase of $4 million over the prior quarter.  Other income had a $3.5 million one-time bargain purchase gain from the acquisition of First National.  Excluding the gain, non-interest income increased $897 thousand, or 4 percent, from the prior quarter, and increased $7.0 million, or 45 percent, over the same period in 2008.  Fee income increased $109 thousand, or 1 percent, during the quarter, compared to the increase of $690 thousand, or 6 percent, over the same period last year.  Gain on sale of loans increased $476 thousand, or 8 percent, for the quarter, and $2.894 million, or 91 percent, over the same period last year, primarily the result of increased residential loans originated and sold in the secondary market during 2009.  Net gain on sale of investments was $3.328 million for the fourth quarter 2009 compared to $2.667 million for the previous quarter, a 25 percent increase.  

    
    
    Non-interest expense 
     summary                     Three months ended              
                                 ------------------              
    ($ in thousands)  December 31,  September 30,    December 31, 
                          2009           2009            2008        
                      (unaudited)    (unaudited)     (unaudited) 
                      -----------    -----------     ----------- 
                                                                 
    Compensation 
     and employee 
     benefits           $21,376        $20,935      $18,775     
    Occupancy and                                               
     equipment                                                  
     expense              6,130          5,835        5,923     
    Advertising and  
     promotion                                                  
     expense              1,435          1,596        1,675     
    Outsourced data                                             
     processing             850            830          638     
    Core deposit                                                
     intangibles                                                
     amortization           822            758          741     
    Other expenses       13,720         11,942        8,340     
                         ------         ------        -----     
          Total non-                                            
           interest                                             
           expense      $44,333        $41,896      $36,092     
                        =======        =======      =======     
                             
                             
    ($ in thousands) $ Change From  $ Change From % Change From  % Change From
                      September 30,  December 31,  September 30,  December 31,
                           2009          2008           2009          2008 
                           ----          ----           ----          ---- 
                                                    
    Compensation                                     
     and employee                                    
     benefits              $441         $2,601            2%            14%
    Occupancy and          
     equipment             
     expense                295            207            5%             3%
    Advertising and                
     promotion             
     expense               (161)          (240)         -10%           -14%
    Outsourced data        
     processing              20            212            2%            33%
    Core deposit           
     intangibles           
     amortization            64             81            8%            11%
    Other expenses        1,778          5,380           15%            65%
                          -----          -----                          
          Total non-       
           interest        
           expense       $2,437         $8,241            6%            23%
                         ======         ======                            

Non-interest Expense

Non-interest expense for the current quarter increased by $2.4 million, or 6 percent from the prior quarter and increased $8.2 million, or 23 percent, from the prior year's fourth quarter.  Compensation and employee benefits increased $441 thousand, or 2 percent, from prior quarter and increased $2.6 million, or 14 percent, from prior year's fourth quarter.  The current quarter increase in compensation and employee benefits is primarily a result of the acquisition of First National, and the increase over the prior year quarter is due to the acquisitions of First National and Bank of the San Juans which was acquired December 1, 2008.  The number of full-time equivalent employees increased from 1,577 to 1,643 during the quarter, and increased from 1,571 since the end of the 2008, primarily the result of First National which has 75 full-time equivalent employees.  

Occupancy and equipment expense has increased $295 thousand, or 5 percent, and $207 thousand, or 3 percent, from the prior quarter and the prior year's fourth quarter, respectively, reflecting the acquisitions of First National and Bank of the San Juans.  Advertising and promotion expense decreased $161 thousand, or 10 percent, from prior quarter and decreased $240 thousand, or 14 percent, from the same quarter of 2008 as the banks continue to focus on operating cost reduction.  The increase of $1.8 million, or 15 percent, in other expense from the prior quarter includes increases of $413 thousand in expenses associated with repossessed assets, $300 thousand in legal and outside service expenses, the majority of which relate to the acquisition of First National, $240 thousand in FDIC insurance expense, $266 thousand in commercial loan expense, and general increases with the acquisition of First National.  The increase of $5.4 million, or 65 percent, in other expense from the prior year's fourth quarter is a result of an increase of $1.5 million in FDIC insurance premiums, $1.5 million of loss from sales of other real estate owned, and $1.2 million in expenses associated with repossessed assets.

Efficiency Ratio

Excluding the bargain purchase gain, the efficiency ratio (non-interest expense / net interest income plus non-interest income) was 51 percent for the quarter, compared to 49 percent for the 2008 fourth quarter.  The increase in the efficiency ratio from the prior year fourth quarter is the result of the increase in other expenses primarily from FDIC insurance premiums and other real estate owned expenses and losses.

    
    
                                  December 31,   September 30,  December 31,  
    Credit Quality Summary            2009            2009          2008  
    ($ in thousands)              (unaudited)     (unaudited)     (audited)   
                                  -----------     -----------     ---------   
                                                                              
    Allowance for loan and lease                                              
     losses -beginning of year        $76,739          76,739         54,413  
      Provision                       124,618          87,905         28,480  
      Acquisition                           -               -          2,625  
      Charge-offs                     (60,896)        (40,991)        (9,839) 
      Recoveries                        2,466           1,677          1,060  
                                        -----           -----          -----  
    Allowance for loan and lease                                              
     losses -end of period           $142,927         125,330         76,739  
                                     ========         =======         ======  
                                                                              
    Real estate and other assets                                              
     owned                            $57,320          54,537         11,539  
    Accruing loans 90 days or                                                 
     more overdue                       5,537           2,891          8,613  
    Non-accrual loans                 198,281         185,577         64,301  
                                      -------         -------         ------  
        Total non-performing                                                  
         assets                      $261,138         243,005         84,453  
                                                                              
    Allowance for loan and lease                                              
     losses as a percentage of non-     
     performing assets                     55%             52%            91% 
                                                                              
    Non-performing assets as a                                                
     percentage of total bank                                                 
     assets                              4.13%           4.10%          1.46% 
                                                                              
    Allowance for loan and lease                                              
     losses as a percentage of total 
     loans                               3.46%           3.10%          1.86% 
                                                                              
    Net charge-offs as a                                                      
     percentage of total loans         (1.415%)        (0.972%)       (0.213%)
                                                                              
    Accruing loans 30-89 days or                                              
     more overdue                     $87,491          43,606         54,787  

Allowance for Loan and Lease Losses and Non-performing Assets

At December 31, 2009, the allowance for loan and lease losses was $142.9 million, an increase of $66 million, or 86 percent, from a year ago.  The allowance was 3.46 percent of total loans outstanding at December 31, 2009, up from 3.10 percent at the prior quarter end, and up from 1.86 percent at December 31, 2008.  The allowance was 55 percent of non-performing assets at December 31, 2009, up from 52 percent for the prior quarter end and down from 91 percent a year ago.  Non-performing assets as a percentage of total bank assets at December 31, 2009 were at 4.13 percent, up from 4.10 percent as of prior quarter end, and up from 1.46 percent at December 31, 2008.  Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of additional provision expense.  

    
    
    Credit Quality Trends 
    (Unaudited - $ in thousands)                  Accruing    
                                                    Loans      Non-Performing 
            Provision                ALLL        30-89 days      Assets to   
            for Loan     Net     as a Percent  as a Percent of   Total Bank  
             Losses  Charge-Offs   of Loans         Loans          Assets    
             ------  -----------   --------         -----          ------   
    Q4 2009  $36,713    19,116       3.46%           2.12%           4.13%
    Q3 2009   47,050    19,094       3.10%           1.08%           4.10%
    Q2 2009   25,140    11,543       2.36%           1.52%           3.06%
    Q1 2009   15,715     8,677       2.01%           1.60%           1.97%
    Q4 2008   12,223     3,742       1.86%           1.33%           1.46%
    Q3 2008    8,715     3,889       1.67%           0.65%           1.30%
    Q2 2008    5,042       915       1.59%           0.92%           0.58%
    Q1 2008    2,500       233       1.54%           0.87%           0.57%

The current quarter provision for loan loss expense was $37 million, a decrease of $10 million from prior quarter and an increase of $24 million from the same quarter in 2008.  Net charged-off loans for the current quarter were $19 million compared to $19 million for the prior quarter and $4 million for the same quarter in 2008.  For the quarter, the provision covered net charge-offs 1.9 times. "Although we are seeing some signs of credit quality beginning to stabilize, it's still uncertain if the trend will continue," Blodnick said.  "Non-performing assets did not expand at the pace of the prior two quarters, however, they did move higher," Blodnick said.  "The two loan categories we have experienced most of the increase in non-performing assets this year were spec residential construction and land development.  In the quarter we saw a significant decrease in spec construction non-performing assets and only a moderate increase to land development, but as the economy continues to struggle we did see non-performing assets increase in commercial real estate, C & I, and 1-4 family loans."

For additional information regarding credit quality and a breakout of the loan portfolio by regulatory classification see exhibits at the end of this press release.

    
    
     Operating Results for Twelve Months Ended December 31, 2009 Compared to
                                 December 31, 2008
    
    Revenue summary     
    ($ in thousands)      Twelve months ended     
                          -------------------     
                       December 31,  December 31, $ Change From  % Change From 
                           2009          2008      December 31,   December 31, 
                       (unaudited)    (audited)        2008           2008 
                       -----------    ---------        ----           ---- 
    Net interest income         
       Interest income    $302,494    $302,985          $(491)          0%
       Interest expense     57,167      90,372        (33,205)        -37%
                            ------      ------        -------             
          Net interest                                                    
           income          245,327     212,613         32,714          15%
                                                                          
    Non-interest income 
       Service charges,    
        loan fees,                                                        
        and other fees      45,871      47,506         (1,635)         -3%
       Gain on sale of 
        loans               26,923      14,849         12,074          81%
       Gain (loss) on                                                     
        investments          5,995      (7,345)        13,340         182%
       Other income          7,685       6,024          1,661          28%
                             -----       -----          -----             
          Total non-                                                      
           interest                                                       
           income           86,474      61,034         25,440          42%
                            ------      ------         ------             
                          $331,801    $273,647        $58,154          21%
                          ========    ========        =======             
                      
    Tax equivalent    
     net interest margin      4.82%       4.70%     
                              ====        ====      

Net Interest Income

Net interest income for the current year increased $33 million, or 15 percent, over the same period in 2008.  Total interest income decreased $491 thousand, or less than 1 percent, while total interest expense decreased $33 million, or 37 percent.  The decrease in total interest expense from prior year is primarily attributable to rate decreases in interest bearing deposits and lower cost borrowings.  The net interest margin as a percentage of earning assets, on a tax equivalent basis for the year, was 4.82 percent for the current year, an increase of 12 basis points from the 4.70 percent for the same period in 2008.  

Non-interest Income

Total non-interest income increased $25 million, or 42 percent over the same period in 2008.  Fee income for the year decreased $1.6 million, or 3 percent, as compared to 2008.  Gain on sale of loans increased $12 million, or 81 percent, primarily the result of the increase in purchase and refinance residential loans originated and sold in the secondary market.  Gain on investments during 2009 of $6.0 million is the net gain from sales of investment securities.  Loss from investments during 2008 included a non-recurring $7.6 million other than temporary impairment charge on investments in Freddie Mac preferred stock and Fannie Mae common stock.  Other income of $7.7 million includes a $3.5 million one-time bargain purchase gain from the acquisition of First National in 2009.  In 2008 other income of $6.0 million included a $1.7 million gain from the sale and relocation of Mountain West Bank's office facility in Ketchum, Idaho.

    
    
    Non-interest expense
     summary                Twelve months ended    
                            -------------------    
    ($ in thousands)     December 31, December 31, $ Change From % Change From
                             2009         2008      December 31,  December 31,
                         (unaudited)   (audited)        2008          2008 
                         -----------   ---------        ----          ---- 
                             
    Compensation and         
     employee benefits     $84,965      $82,027        $2,938            4%
    Occupancy and                                                          
     equipment expense      23,471       21,674         1,797            8%
    Advertising and                                                        
     promotion expense       6,477        6,989          (512)          -7%
    Outsourced data                                                        
     processing              3,031        2,508           523           21%
    Core deposit                                                           
     intangibles                                                           
     amortization            3,116        3,051            65            2%
    Other expenses          47,758       29,660        18,098           61%
                            ------       ------        ------              
          Total non-                                                       
           interest                                                        
           expense        $168,818     $145,909       $22,909           16%
                          ========     ========       =======              

Non-interest Expense

Non-interest expense increased by $23 million, or 16 percent, during 2009.  Compensation and employee benefit expense increased $2.9 million, or 4 percent, from 2008, due to the increased number of employees from the acquisition of Bank of the San Juans in December 2008 and First National in October 2009.  Occupancy and equipment expense increased $2 million, or 8 percent, reflecting the cost of additional locations and facility upgrades.  Advertising and promotion expense decreased $512 thousand, or 7 percent, from 2008 reflecting the banks' continuing focus on reducing operating expenses.  Outsourced data processing expenses increased $523 thousand, or 21 percent, from 2008 as a result of additional locations and general operating increases.  Other expenses increased $18 million, or 61 percent, from 2008.  The increase in other expenses includes $7.3 million in FDIC insurance premiums, $5.2 million loss from sales of other real estate owned, $2.7 million expense associated with repossessed assets and $1.4 million in legal and outside firm expense.  Of the increase in FDIC insurance premiums, $2.5 million is attributable to the second quarter asset-based special assessment.  

Efficiency Ratio

The efficiency ratio (non-interest expense/net interest income plus non-interest income) was 51 percent for 2009 compared favorably to 52 percent for 2008, excluding non-recurring items.  "The banks continue to work hard to improve on all their components of efficiency," Copher said.  "Non interest expense in particular is an area the banks have specifically focused their attention."

Allowance for Loan and Lease Losses

The provision for loan loss expense was $125 million for 2009, an increase of $96 million, or 338 percent, from 2008.  Net charged-off loans during 2009 was $58 million, an increase of $50 million from 2008.

Recent Acquisition

On October 2, 2009, the Company completed the acquisition of First Company and its subsidiary First National Bank & Trust, a community bank based in Powell, Wyoming.  First National Bank & Trust provides community banking services from three branch locations in Powell, Cody, and Lovell, Wyoming.  As of the acquisition, First National Bank & Trust had total assets of approximately $272 million.  First National Bank & Trust will operate as a separate wholly-owned subsidiary of the Company.

Cash Dividend

On December 15, 2009, the board of directors declared a cash dividend of $.13 per share, payable January 14, 2010 to shareholders of record on January 5, 2010.  Future cash dividends will depend on a variety of factors, including net income, capital, asset quality and general economic conditions.

About Glacier Bancorp, Inc.

Glacier Bancorp, Inc. is a regional multi-bank holding company providing commercial banking services in 60 communities in Montana, Idaho, Utah, Washington, Wyoming and Colorado.  Glacier Bancorp, Inc. is headquartered in Kalispell, Montana, and conducts its operations principally through eleven community bank subsidiaries.  These subsidiaries include six Montana banks: Glacier Bank of Kalispell, First Security Bank of Missoula, Valley Bank of Helena, Big Sky Western Bank of Bozeman, Western Security Bank of Billings, First Bank of Montana of Lewistown; as well as Mountain West Bank in Idaho, Utah and Washington; 1st Bank in Wyoming and Utah; First National Bank & Trust in Wyoming; Citizens Community Bank in Idaho; and Bank of the San Juans in Colorado.

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements include, but are not limited to, statements about management's plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "should," "projects," "seeks," "estimates" or words of similar meaning. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations in the forward-looking statements, including those set forth in this news release:

  • the risks associated with lending and potential adverse changes in credit quality;
  • increased loan delinquency rates;
  • the risks presented by a continued economic slowdown, which could adversely affect credit quality, loan collateral values, investment values, liquidity levels, and loan originations;
  • changes in market interest rates, which could adversely affect our net interest income and profitability;
  • legislative or regulatory changes that adversely affect our business or our ability to complete pending or prospective future acquisitions;
  • costs or difficulties related to the integration of acquisitions;
  • reduced demand for banking products and services;
  • the risks presented by public stock market volatility, which could adversely affect the Company's stock value and the ability to raise capital in the future;
  • competition from other financial services companies in our markets; and
  • the Company's success in managing risks involved in the foregoing.

The Company does not undertake any obligation to publicly correct or update any forward-looking statement if we later become aware that it is not likely to be achieved.

Visit our website at www.glacierbancorp.com

    
    
                              Glacier Bancorp, Inc.                          
             Consolidated Condensed Statements of Financial Condition        
             --------------------------------------------------------
    ($ in thousands except per share data)       December 31,    December 31,
    ----------------------------------               2009            2008 
                                                     ----            ---- 
                                                 (unaudited)      (audited)  
     Assets:                                                                 
       Cash on hand and in banks                    $120,731         125,123 
       Federal funds sold                             87,155           6,480 
       Interest bearing cash deposits                  2,689           3,652 
                                                                             
       Investment securities, available-for-                                 
        sale                                       1,506,394         990,092 
                                                                             
       Net loans receivable:                                                 
         Real estate loans                           797,626         838,375 
         Commercial loans                          2,613,218       2,575,828 
         Consumer and other loans                    719,401         715,990 
                                                     -------         ------- 
              Total loans, gross                   4,130,245       4,130,193 
          Allowance for loan and lease losses       (142,927)        (76,739)
                                                    --------         ------- 
              Total loans, net                     3,987,318       4,053,454 
                                                   ---------       --------- 
                                                                             
       Premises and equipment, net                   140,921         133,949 
       Real estate and other assets owned, net        57,320          11,539 
       Accrued interest receivable                    29,729          28,777 
       Deferred tax asset                             41,082          14,292 
       Core deposit intangible, net                   13,937          13,013 
       Goodwill                                      146,259         146,752 
       Other assets                                   58,260          26,847 
                                                      ------          ------ 
         Total assets                             $6,191,795       5,553,970 
                                                  ==========       ========= 
                                                                             
       Liabilities and stockholders' equity:    
         Non-interest bearing deposits              $810,550         747,439 
         Interest bearing deposits                 3,289,602       2,515,036 
         Advances from Federal Home Loan Bank        790,367         338,456 
         Securities sold under agreements to                                 
          repurchase                                 212,506         188,363 
         Federal Reserve Discount Window             225,000         914,000 
         Other borrowed funds                         13,745           8,368 
         Accrued interest payable                      7,928           9,751 
         Subordinated debentures                     124,988         121,037 
         Other liabilities                            31,219          34,580 
                                                      ------          ------ 
           Total liabilities                       5,505,905       4,877,030 
                                                   ---------       --------- 
                                                                             
         Preferred shares, $.01 par value per
          share. 1,000,000 shares authorized   
          None issued or outstanding                       -               - 
         Common stock, $.01 par value per                                    
          share. 117,187,500 shares authorized           616             613 
         Paid-in capital                             497,493         491,794 
         Retained earnings - substantially                                   
          restricted                                 188,129         185,776 
         Accumulated other comprehensive loss           (348)         (1,243)
                                                        ----          ------ 
           Total stockholders' equity                685,890         676,940 
                                                     -------         ------- 
           Total liabilities and                                           
            stockholders' equity                  $6,191,795       5,553,970 
                                                  ==========       ========= 
         Number of shares outstanding             61,619,803      61,331,273 
         Book value of equity per share                11.13           11.04 
    
    
    
                                    Glacier Bancorp, Inc.  
                    Consolidated Condensed Statements of Operations        
                    -----------------------------------------------
    ($ in thousands 
     except per                Three months ended       Twelve months ended  
     share data)                   December 31,             December 31,      
    ----------------               ------------             ------------  
                                2009         2008         2009        2008 
                                ----         ----         ----        ---- 
                            (unaudited)  (unaudited)  (unaudited)   (audited) 
      Interest income:      
        Real estate loans      $12,956       13,374       54,498      51,166 
        Commercial loans        39,278       40,274      151,580     165,119 
        Consumer and                                                        
         other loans            11,213       11,861       44,844      47,725 
        Investment                                                          
         securities and                                                      
         other                  14,665       11,198       51,572      38,975 
                                ------       ------       ------      ------ 
               Total interest  
               income           78,112       76,707      302,494     302,985 
                                ------       ------      -------     ------- 
                                                                             
      Interest expense:     
        Deposits                 9,630       12,151       38,429      55,012 
        Federal Home                                                        
         Loan Bank                                                           
         advances                2,194        2,478        7,952      15,355 
        Securities                                                         
         sold under                                                         
         agreements to   
         repurchase                557          756        2,007       3,823 
        Subordinated                                                         
         debentures              1,594        1,852        6,818       7,430 
        Other borrowed    
         funds                     298        1,362        1,961       8,752 
                                   ---        -----        -----       ----- 
               Total interest   
                expense         14,273       18,599       57,167      90,372 
                                ------       ------       ------      ------ 
                                                                             
      Net interest income       63,839       58,108      245,327     212,613 
        Provision for                                                       
         loan losses            36,713       12,223      124,618      28,480 
                                ------       ------      -------      ------ 
      Net interest                                                         
       income after                                                         
       provision for                                                        
       loan losses              27,126       45,885      120,709     184,133 
                                ------       ------      -------     ------- 
                                                                             
      Non-interest income:     
        Service                                                             
         charges and                                                         
         other fees             10,627       10,195       40,465      41,550 
        Miscellaneous                                                       
         loan fees and                                                       
         charges                 1,585        1,327        5,406       5,956 
        Gain on sale of     
         loans                   6,089        3,195       26,923      14,849 
        Gain (loss) on                                                       
         investments             3,328            -        5,995      (7,345)
        Other income             4,450          920        7,685       6,024 
                                 -----          ---        -----       ----- 
              Total non-interest 
               income           26,079       15,637       86,474      61,034 
                                ------       ------       ------      ------ 
      Non-interest expense:    
        Compensation,                                                        
         employee benefits                                                    
         and related                                                   
         expenses               21,376       18,775       84,965      82,027 
        Occupancy and                                                       
         equipment                                                           
         expense                 6,130        5,923       23,471      21,674 
        Advertising and  
         promotion                                                           
         expense                 1,435        1,675        6,477       6,989 
        Outsourced data   
         processing                                                          
         expense                   850          638        3,031       2,508 
        Core deposit                                                        
         intangibles                                                         
         amortization              822          741        3,116       3,051 
        Other expenses          13,720        8,340       47,758      29,660 
                                ------        -----       ------      ------ 
              Total non-                                                     
              interest                                                       
              expense           44,333       36,092      168,818     145,909 
                                ------       ------      -------     ------- 
      Earnings before   
       income taxes              8,872       25,430       38,365      99,258 
                                                                             
      Federal and                                                          
       state income                                                         
       tax (benefit)                                                        
       expense                    (602)       8,416        3,991      33,601 
                                  ----        -----        -----      ------ 
      Net earnings              $9,474       17,014       34,374      65,657 
                                ======       ======       ======      ====== 
                                                                             
      Basic earnings                                                         
       per share                  0.15         0.30         0.56        1.20 
      Diluted earnings per 
       share                      0.15         0.29         0.56        1.19 
      Dividends declared per   
       share                      0.13         0.13         0.52        0.52 
      Return on average assets   
       (annualized)               0.62%        1.27%        0.60%       1.31%
      Return on average   
       equity (annualized)        5.43%       11.02%        4.97%      11.63%
      Average outstanding  
       shares - basic       61,619,803   57,458,743   61,529,944  54,851,145 
      Average outstanding 
       shares - diluted     61,619,803   57,556,778   61,531,640  55,003,814 
    
    
    
                           Glacier Bancorp, Inc.                      
                           Average Balance Sheet                      
                                                                      
                                           For the three months ended 
                                                    12-31-09          
                                           -------------------------- 
    (Unaudited - $ in thousands)                     Interest Average 
                                           Average     and     Yield/ 
    ASSETS                                 Balance  Dividends   Rate  
                                           -------  ---------   ----  
      Real Estate Loans                    $818,364   $12,956    6.33%
      Commercial Loans                    2,642,721    39,278    5.90%
      Consumer and Other Loans              703,435    11,213    6.32%
                                            -------    ------         
        Total Loans                       4,164,520    63,447    6.04%
      Tax -Exempt Investment
       Securities (1)                       460,512     5,504    4.78%
      Other Investment Securities           968,255     9,161    3.78%
                                            -------     -----         
        Total Earning Assets              5,593,287    78,112    5.59%
                                                       ------         
      Goodwill and Core Deposit                                       
       Intangible                           160,674                   
      Other Non-Earning Assets              262,851                   
                                            -------                   
        TOTAL ASSETS                     $6,016,812                   
                                         ==========                   
                                                                      
    LIABILITIES                                                       
    AND STOCKHOLDERS' EQUITY                                          
      NOW Accounts                         $685,340      $756    0.44%
      Savings Accounts                      304,284       167    0.22%
      Money Market Accounts                 815,166     2,029    0.99%
      Certificates of Deposit             1,046,689     5,833    2.21%
      Wholesale Deposits                    282,904       845    1.18%
      FHLB Advances                         649,871     2,194    1.34%
      Repurchase Agreements                                           
       and Other Borrowed Funds             672,681     2,449    1.44%
                                            -------     -----         
        Total Interest Bearing                                        
         Liabilities                      4,456,935    14,273    1.27%
                                                       ------         
      Non-interest Bearing Deposits         817,677                   
      Other Liabilities                      49,661                   
                                             ------                   
        Total Liabilities                 5,324,273                   
                                          ---------                   
                                                                      
      Common Stock                              616                   
      Paid-In Capital                       497,230                   
      Retained Earnings                     189,613                   
      Accumulated Other                                               
        Comprehensive Gain                    5,080                   
                                              -----                   
        Total Stockholders' Equity          692,539                   
                                            -------                   
        TOTAL LIABILITIES AND                                         
        STOCKHOLDERS' EQUITY             $6,016,812                   
                                         ==========                   
                                                                      
                                                                      
      Net Interest Income                             $63,839         
                                                      =======         
      Net Interest Spread                                        4.32%
      Net Interest Margin                                        4.53%
      Net Interest Margin (Tax Equivalent)                       4.70%
      Return on Average Assets  (annualized)                     0.62%
      Return on Average Equity                                        
       (annualized)                                              5.43%
                                                                 ---- 
                                                                      
                                                                      
                                                                      
                                                                      
                                          For the twelve months ended 
                                                    12-31-09          
                                          --------------------------- 
    (Unaudited - $ in thousands)                     Interest Average 
                                           Average     and     Yield/ 
    ASSETS                                 Balance  Dividends   Rate  
                                           -------  ---------   ----  
      Real Estate Loans                    $829,348   $54,498    6.57%
      Commercial Loans                    2,608,961   151,580    5.81%
      Consumer and Other Loans              702,232    44,844    6.39%
                                            -------    ------         
        Total Loans                       4,140,541   250,922    6.06%
      Tax -Exempt Investment
       Securities (1)                       445,063    22,196    4.99%
      Other Investment Securities           707,062    29,376    4.15%
                                            -------    ------         
        Total Earning Assets              5,292,666   302,494    5.72%
                                                      -------         
      Goodwill and Core Deposit                                       
       Intangible                           158,896                   
      Other Non-Earning Assets              240,367                   
                                            -------                   
        TOTAL ASSETS                     $5,691,929                   
                                         ==========                   
                                                                      
    LIABILITIES                                                       
    AND STOCKHOLDERS' EQUITY                                          
      NOW Accounts                         $572,260    $2,275    0.40%
      Savings Accounts                      303,794       947    0.31%
      Money Market Accounts                 768,939     8,436    1.10%
      Certificates of Deposit               960,403    24,719    2.57%
      Wholesale Deposits                    133,083     2,052    1.54%
      FHLB Advances                         473,038     7,952    1.68%
      Repurchase Agreements                                           
       and Other Borrowed Funds             995,006    10,786    1.08%
                                            -------    ------         
        Total Interest Bearing                                        
         Liabilities                      4,206,523    57,167    1.36%
                                                       ------         
      Non-interest Bearing Deposits         755,128                   
      Other Liabilities                      38,356                   
                                             ------                   
        Total Liabilities                 5,000,007                   
                                          ---------                   
                                                                      
      Common Stock                              615                   
      Paid-In Capital                       495,340                   
      Retained Earnings                     193,973                   
      Accumulated Other                                               
        Comprehensive Gain                    1,994                   
                                              -----                   
        Total Stockholders' Equity          691,922                   
                                            -------                   
        TOTAL LIABILITIES AND                                         
        STOCKHOLDERS' EQUITY             $5,691,929                   
                                         ==========                   
                                                                      
                                                                      
      Net Interest Income                            $245,327         
                                                     ========         
      Net Interest Spread                                        4.36%
      Net Interest Margin                                        4.64%
      Net Interest Margin (Tax Equivalent)                       4.82%
      Return on Average Assets  (annualized)                     0.60%
      Return on Average Equity                                        
       (annualized)                                              4.97%
                                                                 ---- 
                                                                      
     (1) Excludes tax effect of $9,827,000 and $2,437,000 on non- taxable 
         investment security income for the year to date and quarter 
         ended December 31, 2009, respectively. 
    
    
    
    
    
                             Glacier Bancorp, Inc.                        
                 Loan Portfolio - by Regulatory Classification            
                         (Unaudited - $ in thousands)                     
                                                                          
                        Loans Receivable, Gross         
                        -----------------------      % Change   % Change
                      Balance   Balance    Balance    From        From    
                    12/31/2009 9/30/2009 12/31/2008 9/30/2009  12/31/2008 
                    ---------- --------- ---------- ---------  ---------- 
    Glacier           $942,254   950,000    982,098        -1%         -4%
    Mountain West      957,451   971,240    971,468        -1%         -1%
    First Security     566,713   574,371    573,228        -1%         -1%
    1st Bank           296,913   299,095    326,381        -1%         -9%
    Western            323,375   332,709    361,261        -3%        -10%
    Big Sky            270,970   283,110    293,626        -4%         -8%
    Valley             187,283   188,221    199,085         0%         -6%
    First National     153,058         -          -       n/m         n/m 
    Citizens           166,049   172,769    162,133        -4%          2%
    First Bank - MT    117,017   123,846    116,122        -6%          1%
    San Juans          149,162   150,889    144,791        -1%          3%
                       -------   -------    -------                       
       Total        $4,130,245 4,046,250  4,130,193         2%          0%
                    ========== =========  =========                       
                                                                          
                          Land, Lot and Other                             
                           Construction Loans          
                          -------------------        % Change   % Change
                      Balance   Balance    Balance    From        From    
                    12/31/2009 9/30/2009 12/31/2008 9/30/2009  12/31/2008 
                    ---------- --------- ---------- ---------  ---------- 
    Glacier           $165,734   164,448    204,479         1%        -19%
    Mountain West      217,078   238,268    249,916        -9%        -13%
    First Security      71,404    73,432     95,960        -3%        -26%
    1st Bank            36,888    39,218     41,667        -6%        -11%
    Western             32,045    37,887     45,457       -15%        -30%
    Big Sky             71,365    73,944     81,869        -3%        -13%
    Valley              14,704    15,450     17,918        -5%        -18%
    First National      10,303         -          -       n/m         n/m 
    Citizens            13,263    21,816     14,827       -39%        -11%
    First Bank - MT      1,010     5,804      4,507       -83%        -78%
    San Juans           39,621    36,202     36,793         9%          8%
                        ------    ------     ------                       
       Total          $673,415   706,469    793,393        -5%        -15%
                      ========   =======    =======                       
    
    
    
                                                       
                      Land, Lot and Other Construction 
                              Loans at 12/31/09        
                      -------------------------------- 
                                    Consumer           
                          Land       Land or Unimproved
                      Development      Lot      Land   
                    ---------------  -------  -------- 
    Glacier                 $80,881   33,025     29,850
    Mountain West            55,908   74,914     29,684
    First Security           30,569    7,208     26,372
    1st Bank                 14,447   12,223      4,448
    Western                  16,309    7,823      5,159
    Big Sky                  22,909   18,882      9,925
    Valley                    2,597    5,867      4,513
    First National            1,961    2,990        733
    Citizens                  2,868    2,633      2,652
    First Bank - MT               -       65        820
    San Juans                   417   26,838         45
                                ---   ------         --
       Total               $228,866  192,468    114,201
                           ========  =======    =======
    
    
    
                    Land, Lot and Other Construction Loans at 12/31/09
                    --------------------------------------------------
                           Developed       Commercial                 
                           Lots for         Developed       Other     
                      Operative Builders       Lot      Construction  
                    ----------------------   -------  ----------------
    Glacier                  $8,625            13,353            -
    Mountain West            31,655            10,664       14,253
    First Security            4,525               518        2,212
    1st Bank                    225             2,513        3,032
    Western                     587             1,914          253
    Big Sky                   1,992             8,420        9,237
    Valley                      159               349        1,219
    First National              250             2,245        2,124
    Citizens                    506               655        3,949
    First Bank - MT               -                 -          125
    San Juans                     -             3,878        8,443
                                ---             -----        -----
       Total                $48,524            44,509       44,847
                            =======            ======       ======
    
    
    
                                                   
                                                   
                     Residential Construction Loans
                     ------------------------------
                      Balance   Balance    Balance 
                    12/31/2009 9/30/2009 12/31/2008
                    ---------- --------- ----------
    Glacier            $57,183    72,828     84,161
    Mountain West       57,437    63,572    100,289
    First Security      19,664    15,981     19,910
    1st Bank            17,633    18,783     30,742
    Western              2,245     3,709      6,993
    Big Sky             20,679    27,803     28,356
    Valley               5,170     5,380      8,265
    First National       2,612         -          -
    Citizens            13,211    16,705     17,909
    First Bank - MT        234       179      1,384
    San Juans           13,811    13,549     11,425
                        ------    ------     ------
       Total          $209,879   238,489    309,434
                      ========   =======    =======
    
    
    
                                               Custom &             
                       % Change   % Change       Owner     Pre-Sold 
                        From        From       Occupied     & Spec  
                      9/30/2009  12/31/2008   12/31/2009  12/31/2009
                      ---------  ----------   ----------  ----------
    Glacier               -21%        -32%       $9,762     47,421
    Mountain West         -10%        -43%       23,606     33,831
    First Security         23%         -1%        9,985      9,679
    1st Bank               -6%        -43%       11,010      6,623
    Western               -39%        -68%        1,830        415
    Big Sky               -26%        -27%        3,169     17,510
    Valley                 -4%        -37%        4,222        948
    First National        n/m         n/m         1,505      1,107
    Citizens              -21%        -26%        6,619      6,592
    First Bank - MT        31%        -83%          174         60
    San Juans               2%         21%        6,753      7,058
                                                  -----      -----
       Total              -12%        -32%      $78,635    131,244
                                                =======    =======
                                                                    
        n/m - not measurable                                        
    
    
    
    
    
                       Glacier Bancorp, Inc.                        
           Loan Portfolio - by Regulatory Classification            
                            (continued)                            
                   (Unaudited - $ in thousands)                    
                                                               
                     Single Family Residential Loans           
                     -------------------------------           
                      Balance    Balance     Balance           
                    12/31/2009  9/30/2009  12/31/2008          
                    ----------  ---------  ----------          
    Glacier           $204,789    205,203     198,654          
    Mountain West      278,158    275,936     274,119          
    First Security      82,141     82,349      79,107          
    1st Bank            65,555     63,893      62,954          
    Western             50,502     45,764      56,789          
    Big Sky             33,308     33,840      29,493          
    Valley              66,644     65,261      70,935          
    First National      19,239          -           -          
    Citizens            20,937     21,659      18,903          
    First Bank - MT     10,003     10,592      10,341          
    San Juans           22,811     22,790      23,605          
                        ------     ------      ------          
       Total          $854,087    827,287     824,900          
                      ========    =======     =======          
                                                               
                                                               
                     % Change    % Change       1st         Junior
                       From        From         Lien         Lien  
                     9/30/2009  12/31/2008   12/31/2009   12/31/2009 
                     ---------  ----------   ----------   ---------- 
                                                              
    Glacier                0%         3%      183,647        21,142
    Mountain West          1%         1%      236,962        41,196
    First Security         0%         4%       68,266        13,875
    1st Bank               3%         4%       60,566         4,989
    Western               10%       -11%       48,099         2,403
    Big Sky               -2%        13%       29,482         3,826
    Valley                 2%        -6%       54,255        12,389
    First National       n/m        n/m        16,150         3,089
    Citizens              -3%        11%       18,695         2,242
    First Bank - MT       -6%        -3%        8,536         1,467
    San Juans              0%        -3%       21,305         1,506
                                               ------         -----
       Total               3%         4%      745,963       108,124
                                              =======       =======
    
    
    
                                                                     
                        Commercial Real Estate Loans                 
                        ----------------------------                 
                      Balance     Balance      Balance               
                    12/31/2009   9/30/2009   12/31/2008              
                    ----------   ---------   ----------              
    Glacier           $232,552     235,576       223,449             
    Mountain West      230,383     212,865       180,215             
    First Security     224,425     223,756       192,352             
    1st Bank            64,008      66,924        67,249             
    Western            107,173     104,450        98,290             
    Big Sky             82,303      83,489        80,053             
    Valley              48,144      48,202        46,850             
    First National      26,647           -             -             
    Citizens            55,660      53,424        53,813             
    First Bank - MT     18,827      13,772        17,397             
    San Juans           47,838      54,525        50,925             
                        ------      ------        ------             
       Total        $1,137,960   1,096,983     1,010,593             
                    ==========   =========     =========             
                                                                     
                                                                     
                                                                     
                     % Change    % Change       Owner      Non-Owner 
                       From        From       Occupied     Occupied  
                     9/30/2009  12/31/2008   12/31/2009   12/31/2009 
                     ---------  ----------   ----------   ---------- 
    Glacier               -1%          4%      117,243      115,309
    Mountain West          8%         28%      164,625       65,758
    First Security         0%         17%      150,733       73,692
    1st Bank              -4%         -5%       54,852        9,156
    Western                3%          9%       54,113       53,060
    Big Sky               -1%          3%       50,699       31,604
    Valley                 0%          3%       31,353       16,791
    First National       n/m         n/m        18,329        8,318
    Citizens               4%          3%       42,786       12,874
    First Bank - MT       37%          8%       12,597        6,230
    San Juans            -12%         -6%       27,306       20,532
                                                ------       ------
       Total               4%         13%      724,636      413,324
                                               =======      =======
    
    
    
                                                                             
                                    Consumer Loans                           
                                    --------------                           
                        Balance     Balance         Balance                  
                      12/31/2009   9/30/2009      12/31/2008                 
                      ----------   ---------      ----------                 
    Glacier             $162,723     161,416         170,713             
    Mountain West         71,702      72,696          72,584             
    First Security        78,345      80,444          85,646             
    1st Bank              46,455      46,686          50,723             
    Western               48,946      49,912          55,714             
    Big Sky               28,903      28,906          33,147             
    Valley                24,625      25,753          25,802             
    First National        27,320           -               -             
    Citizens              29,253      28,276          28,633             
    First Bank - MT        7,650       7,699           7,251             
    San Juans             14,189      13,935          12,204             
                          ------      ------          ------             
       Total            $540,111     515,723         542,417             
                        ========     =======         =======             
                                                                             
                                                                             
                                                                             
                       % Change    % Change       Home Equity        Other   
                         From        From       Line of Credit     Consumer  
                       9/30/2009  12/31/2008      12/31/2009      12/31/2009 
                       ---------  ----------      ----------      ---------- 
    Glacier                  1%         -5%         145,377          17,346
    Mountain West           -1%         -1%          61,896           9,806
    First Security          -3%         -9%          51,110          27,235
    1st Bank                 0%         -8%          17,575          28,880
    Western                 -2%        -12%          33,679          15,267
    Big Sky                  0%        -13%          25,569           3,334
    Valley                  -4%         -5%          15,938           8,687
    First National         n/m         n/m           16,803          10,517
    Citizens                 3%          2%          22,872           6,381
    First Bank - MT         -1%          6%           3,777           3,873
    San Juans                2%         16%          12,439           1,750
                                                     ------           -----
       Total                 5%          0%         407,035         133,076
                                                    =======         =======
                                                                             
                                                                             
                                                                             
        n/m - not measurable                                                 
    
    
    
                               Glacier Bancorp, Inc.                          
                              Credit Quality Summary                          
                           (Unaudited - $ in thousands)                       
                                                                              
                                      Non-Performing Assets, Net of Govt.     
                                                   Guarantees                 
                                                  By Loan Type                
                                                  ------------                
                                    Balance        Balance         Balance    
                                  12/31/2009      9/30/2009       12/31/2008  
                                  ----------      ---------       ----------  
    Custom & Owner Occupied                                                   
     Construction                    $3,281          1,131              451
    Pre-Sold & Spec Construction     29,580         39,812           21,903
    Land Development                 88,488         84,929           23,597
    Consumer Land or Lots            10,120         12,092            1,511
    Unimproved land                  32,453         29,779            8,920
    Developed Lots for Operative                                          
     Builders                        11,565         10,909            5,567
    Commercial Lots                     909          1,011              280
    Other Construction                    -              -            2,668
    Commercial Real Estate           32,300         21,475            3,391
    Commercial & Industrial          12,271          9,235            6,983
    1-4 Family                       30,868         24,615            6,666
    Home Equity Line of Credits       6,234          5,539            1,807
    Consumer                          1,042            923              602
    Other                             2,027          1,555              107
                                      -----          -----              ---
       Total                       $261,138        243,005           84,453
                                   ========        =======           ======
                                                                              
                                                                              
                                                                              
                                     Non-         Accruing          Other     
                                   Accruing       Loans 90       Real Estate  
                                     Loans      Days or More        Owned     
                                  12/31/2009     12/31/2009       12/31/2009  
                                  ----------     ----------       ----------  
    Custom & Owner Occupied                                                   
     Construction                    $2,499              -              782
    Pre-Sold & Spec Construction     20,849            420            8,311
    Land Development                 70,277              -           18,211
    Consumer Land or Lots             6,161             54            3,905
    Unimproved land                  20,303            135           12,015
    Developed Lots for Operative                                           
     Builders                         6,350            114            5,101
    Commercial Lots                     909              -                -
    Other Construction                    -              -                -
    Commercial Real Estate           29,859            144            2,297
    Commercial & Industrial          11,669            565               37
    1-4 Family                       22,596          2,750            5,522
    Home Equity Line of Credits       4,711          1,183              340
    Consumer                            476            172              394
    Other                             1,622              -              405
                                      -----            ---              ---
       Total                       $198,281          5,537           57,320
                                   ========          =====           ======
    
    
    
                                                                        
                         Accruing 30 - 89 Days Delinquent Loans and     
                     Non-Performing Assets, Net of Govt. Guarantees by  
                                             Bank                       
                     -------------------------------------------------- 
                        Balance           Balance            Balance    
                      12/31/2009         9/30/2009          12/31/2008  
                      ----------         ---------          ----------  
    Glacier             $97,666            99,792              41,691
    Mountain West       109,187            76,073              41,415
    First Security       59,351            46,321              18,793
    1st Bank             21,117            19,744              14,355
    Western               9,315             8,917               3,364
    Big Sky              31,711            26,941              10,978
    Valley                2,542             1,638               2,855
    First National        9,290                 -                   -
    Citizens              5,340             5,653               5,080
    First Bank - MT         800               538                 563
    San Juans             2,310               994                 146
                          -----               ---                 ---
       Total           $348,629           286,611             139,240
                       ========           =======             =======
                                                                        
                                                                        
                                                                        
                       Accruing        Non-Accrual &          Other     
                      30-89 Days     Accruing Loans 90     Real Estate  
                      Delinquent        Days or More          Owned     
                      12/31/2009         12/31/2009         12/31/2009  
                      ----------         ----------         ----------  
    Glacier             $18,677             72,157              6,832
    Mountain West        32,506             62,855             13,826
    First Security       14,934             31,665             12,752
    1st Bank              4,210              7,673              9,234
    Western               1,796              3,295              4,224
    Big Sky               5,280             17,908              8,523
    Valley                1,783                679                 80
    First National        5,744              3,407                139
    Citizens              1,910              1,873              1,557
    First Bank - MT         608                 39                153
    San Juans                43              2,267                  -
                            ---              -----                ---
       Total            $87,491            203,818             57,320
                        =======            =======             ======
    
    
    
                                                                      
                                                                      
                                                                      
                            Allowance for Loan and Lease Losses       
                            -----------------------------------       
                       Balance          Balance           Balance     
                      12/31/2009       9/30/2009        12/31/2008    
                      ----------       ---------        ----------    
    Glacier             $38,978          35,835            18,990 
    Mountain West        37,551          32,686            15,982 
    First Security       18,242          15,673            11,537 
    1st Bank             10,895          10,038             6,012 
    Western               8,762           8,020             7,062 
    Big Sky              10,536           8,862             6,232 
    Valley                4,367           4,132             3,581 
    First National        1,679               -                 - 
    Citizens              4,865           4,064             2,721 
    First Bank - MT       2,904           2,699             1,945 
    San Juans             4,148           3,321             2,677 
                          -----           -----             ----- 
       Total           $142,927         125,330            76,739 
                       ========         =======            ====== 
                                                                      
                                                                      
                                                                      
                                     Provision for                    
                      Provision        the Year            ALLL       
                       for Year     Ended 12/31/09     as a Percent   
                        Ended          Over Net          of Loans     
                      12/31/2009      Charge-Offs       12/31/2009    
                      ----------      -----------       ----------    
    Glacier             $32,000              2.7             4.14%
    Mountain West        50,500              1.7             3.92%
    First Security       10,450              2.8             3.22%
    1st Bank             10,800              1.8             3.67%
    Western               3,200              2.1             2.71%
    Big Sky               9,200              1.9             3.89%
    Valley                1,200              2.9             2.33%
    First National        1,683            420.8             1.10%
    Citizens              2,800              4.3             2.93%
    First Bank - MT         985             37.9             2.48%
    San Juans             1,800              5.5             2.78%
                          -----                                   
       Total           $124,618              2.1             3.46%
                       ========                                   
    
    
    
                                                                              
                     Net Charge-Offs, Year-to-Date                            
                              Period Ending          Charge-Offs   Recoveries 
                     ------------------------------                           
                    12/31/2009 9/30/2009 12/31/2008   12/31/2009   12/31/2009 
                    ---------- --------- ----------   ----------   ---------- 
    Glacier            $12,012     4,155      1,121        12,117          105
    Mountain West       28,931    21,296      5,557        29,766          835
    First Security       3,745     1,889        425         3,931          186
    1st Bank             5,917     5,024        347         6,215          298
    Western              1,500     1,342        282         1,896          396
    Big Sky              4,896     4,370        600         5,433          537
    Valley                 414       349        127           457           43
    First National           4         -          -             4            -
    Citizens               656       532        302           683           27
    First Bank - MT         26        31         17            57           31
    San Juans              329       326          1           337            8
                           ---       ---          -           ---          ---
       Total           $58,430    39,314      8,779        60,896        2,466
                       =======    ======      =====        ======        =====
    
    
    

SOURCE Glacier Bancorp, Inc.



RELATED LINKS

http://www.glacierbancorp.com