3rd Quarter 2024 Highlights:
- Diluted earnings per share for the current quarter was $0.45 per share, an increase of 15 percent from the prior quarter diluted earnings per share of $0.39 per share.
- Net income was $51.1 million for the current quarter, an increase of $6.3 million, or 14 percent, from the prior quarter net income of $44.7 million and a decrease of $1.4 million, or 3 percent, from the prior year third quarter net income of $52.4 million.
- The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.83 percent, an increase of 15 basis points from the prior quarter net interest margin of 2.68 percent.
- Net interest income was $180 million for the current quarter, an increase of $13.8 million, or 8 percent, from the prior quarter net interest income of $166 million and an increase of $13.2 million, or 8 percent, from the prior year third quarter net interest income of $167 million.
- The loan portfolio of $17.181 billion increased $329 million, or 2 percent, during the current quarter and organically increased $57.6 million, or 1 percent annualized, during the current quarter.
- Total core deposits of $20.711 billion, increased $613 million, or 3 percent, during the current quarter and organically increased $216 million, or 4 percent annualized, during the current quarter.
- Non-interest bearing deposits of $6.408 billion, increased $314 million, or 5 percent, during the current quarter and organically increased $221 million, or 14 percent annualized, during the current quarter.
- The loan yield of 5.69 percent in the current quarter increased 11 basis points from the prior quarter loan yield of 5.58 percent and increased 42 basis points from the prior year third quarter loan yield of 5.27 percent.
- The total cost of funding (including non-interest bearing deposits) of 1.79 percent in the current quarter decreased 1 basis point from the prior quarter total cost of funding of 1.80 percent.
- Stockholders' equity of $3.245 billion increased $108 million, or 3 percent, during the current quarter and increased $370 million, or 13 percent, over the prior year third quarter.
- The Company declared a quarterly dividend of $0.33 per share. The Company has declared 158 consecutive quarterly dividends and has increased the dividend 49 times.
- The Company completed the acquisition and core system conversion of six Montana branch locations of Rocky Mountain Bank division ("RMB”) of HTLF Bank, a wholly owned subsidiary of Heartland Financial USA, Inc. with total assets of $403 million, total gross loans of $272 million and total deposits of $397 million.
- Net income for the first nine months of 2024 was $128 million, a decrease of $40.2 million, or 24 percent, from the prior year first nine months net income of $169 million.
- Interest income for the first nine months of 2024 was $843 million, an increase of $98.7 million, or 13 percent, over the $744 million of interest income for the first nine months of 2023.
- The loan portfolio increased $983 million, or 6 percent, during the first nine months of 2024 and organically increased $261 million, or 2 percent, during the first nine months of 2024.
- The $2.740 billion of FRB Bank Term Funding ("BTFP”) was paid off during the current year through a combination of Federal Home Loan Bank ("FHLB”) advances and cash.
- Dividends declared in the first nine months of 2024 were $0.99 per share.
- The Company completed the acquisition and core system conversion of Community Financial Group, Inc., the parent company of Wheatland Bank (collectively, "Wheatland”), a leading eastern Washington community bank headquartered in Spokane with total assets of $778 million.
| At or for the Three Months ended | At or for the Nine months ended | |||||||||||||||||
| (Dollars in thousands, except per share and market data) | Sep 30, 2024 | Jun 30,
2024 | Mar 31, 2024 | Sep 30,
2023 | Sep 30, 2024 | Sep 30,
2023 | ||||||||||||
| Operating results | ||||||||||||||||||
| Net income | $ | 51,055 | 44,708 | 32,627 | 52,445 | 128,390 | 168,611 | |||||||||||
| Basic earnings per share | $ | 0.45 | 0.39 | 0.29 | 0.47 | 1.14 | 1.52 | |||||||||||
| Diluted earnings per share | $ | 0.45 | 0.39 | 0.29 | 0.47 | 1.13 | 1.52 | |||||||||||
| Dividends declared per share | $ | 0.33 | 0.33 | 0.33 | 0.33 | 0.99 | 0.99 | |||||||||||
| Market value per share | ||||||||||||||||||
| Closing | $ | 45.70 | 37.32 | 40.28 | 28.50 | 45.70 | 28.50 | |||||||||||
| High | $ | 47.71 | 40.18 | 42.75 | 36.45 | 47.71 | 50.03 | |||||||||||
| Low | $ | 35.57 | 34.35 | 34.74 | 26.84 | 34.35 | 26.77 | |||||||||||
| Selected ratios and other data | ||||||||||||||||||
| Number of common stock shares outstanding | 113,394,786 | 113,394,092 | 113,388,590 | 110,879,365 | 113,394,786 | 110,879,365 | ||||||||||||
| Average outstanding shares - basic | 113,394,758 | 113,390,539 | 112,492,142 | 110,877,534 | 113,093,583 | 110,857,788 | ||||||||||||
| Average outstanding shares - diluted | 113,473,107 | 113,405,491 | 112,554,402 | 110,886,959 | 113,137,861 | 110,882,718 | ||||||||||||
| Return on average assets (annualized) | 0.73 | % | 0.66 | % | 0.47 | % | 0.75 | % | 0.62 | % | 0.83 | % | ||||||
| Return on average equity (annualized) | 6.34 | % | 5.77 | % | 4.25 | % | 7.12 | % | 5.47 | % | 7.72 | % | ||||||
| Efficiency ratio | 64.92 | % | 67.97 | % | 74.41 | % | 63.31 | % | 68.98 | % | 62.10 | % | ||||||
| Loan to deposit ratio | 83.16 | % | 84.03 | % | 82.04 | % | 79.25 | % | 83.16 | % | 79.25 | % | ||||||
| Number of full time equivalent employees | 3,434 | 3,399 | 3,438 | 3,314 | 3,434 | 3,314 | ||||||||||||
| Number of locations | 232 | 231 | 232 | 221 | 232 | 221 | ||||||||||||
| Number of ATMs | 279 | 286 | 285 | 274 | 279 | 274 | ||||||||||||
Net income for the nine months ended September 30, 2024 was $128 million, a decrease of $40.2 million, or 24 percent, from the $169 million net income for the first nine months of the prior year. Diluted earnings per share for the first nine months of 2024 was $1.13 per share, a decrease of $0.39 per share from the prior year first nine months diluted earnings per share of $1.52. The decrease in net income for the first nine months of the current year compared to the prior year first nine months was primarily due to the significant increase in funding costs. In addition, the current year-to-date results included increased operating costs and a $9.7 million provision for credit losses associated with the acquisitions of Wheatland and RMB.
On July 19, 2024, the Company completed the acquisition of six RMB branches in Montana. The branches have been combined with Glacier Bank divisions operating in Montana, including First Bank of Montana, First Security Bank of Bozeman, First Security Bank of Missoula, Valley Bank, and Western Security Bank. On January 31, 2024, the Company completed the acquisition of Wheatland, headquartered in Spokane, Washington. Wheatland had 14 branches in eastern Washington and was combined with the North Cascades Bank division under the name Wheatland Bank, division of Glacier Bank. The Wheatland Bank division now operates with a combined 23 branches in Central and Eastern Washington and is a Top 5 community bank by deposit share in Eastern Washington. The Company's results of operations and financial condition include the Wheatland and RMB acquisitions beginning on the acquisition date of each. The following table discloses the preliminary fair value estimates of select classifications of assets and liabilities acquired:
| Wheatland | RMB | |||||||
| (Dollars in thousands) | January 31,
2024 | July 19, 2024 | Total | |||||
| Total assets | $ | 777,659 | $ | 403,052 | $ | 1,180,711 | ||
| Cash and cash equivalents | 12,926 | 76,781 | 89,707 | |||||
| Debt securities | 187,183 | - | 187,183 | |||||
| Loans receivable | 450,403 | 271,569 | 721,972 | |||||
| Non-interest bearing deposits | 277,651 | 93,534 | 371,185 | |||||
| Interest bearing deposits | 339,304 | 303,156 | 642,460 | |||||
| Borrowings | 58,500 | 4,305 | 62,805 | |||||
| Core deposit intangible | 16,936 | 9,794 | 26,730 | |||||
| Goodwill | 38,369 | 29,794 | 68,163 | |||||
| $ Change from | |||||||||||||||||||||
| (Dollars in thousands) | Sep 30,
2024 | Jun 30, 2024 | Dec 31, 2023 | Sep 30,
2023 | Jun 30, 2024 | Dec 31, 2023 | Sep 30, 2023 | ||||||||||||||
| Cash and cash equivalents | $ | 987,833 | 800,779 | 1,354,342 | 1,672,094 | 187,054 | (366,509 | ) | (684,261 | ) | |||||||||||
| Debt securities, available-for-sale | 4,436,578 | 4,499,541 | 4,785,719 | 4,741,738 | (62,963 | ) | (349,141 | ) | (305,160 | ) | |||||||||||
| Debt securities, held-to-maturity | 3,348,698 | 3,400,403 | 3,502,411 | 3,553,805 | (51,705 | ) | (153,713 | ) | (205,107 | ) | |||||||||||
| Total debt securities | 7,785,276 | 7,899,944 | 8,288,130 | 8,295,543 | (114,668 | ) | (502,854 | ) | (510,267 | ) | |||||||||||