4th Quarter 2023 Highlights:
- Net income was
$54.3 million for the current quarter, an increase of$1.9 million , or 4 percent, from the prior quarter net income of$52.4 million . Net income for the current quarter decreased$25.4 million , or 32 percent, from the prior year fourth quarter net income of$79.7 million , which was primarily driven by an increase in cost of funds. - Interest income of
$273 million in the current quarter increased$8.6 million , or 3 percent, over the prior quarter interest income of$265 million . Interest income in the current quarter increased$48.4 million , or 22 percent, over the prior year fourth quarter. - The loan portfolio of
$16.198 billion increased$63.0 million , or 2 percent annualized, during the current quarter. - The loan yield for the current quarter of 5.34 percent, increased 7 basis points, compared to 5.27 percent in the prior quarter and increased 51 basis points from the prior year fourth quarter loan yield of 4.83 percent.
- Non-performing assets of
$25.6 million atDecember 31, 2023 decreased$16.7 million , or 39 percent, over the prior quarter and decreased$7.1 million , or 22 percent, over the prior year end. - Stockholders’ equity of
$3.020 billion increased$146 million , or 5 percent, during the current quarter and increased$177 million , or 6 percent, over the prior year end. - The Company declared a quarterly dividend of
$0.33 per share. The Company has declared 155 consecutive quarterly dividends and has increased the dividend 49 times.
Year 2023 Highlights
- Net income for 2023 was
$223 million , a decrease of$80.3 million , or 26 percent, from$303 million for the prior year. The decrease was primarily attributable to a$96.7 million decrease in net interest income driven by a significant increase in the cost of funds. - Interest income for the current year was
$1.018 billion , an increase of$188 million , or 23 percent over the prior year interest income of$830 million . - The loan portfolio of
$16.198 billion increased$951 million , or 6 percent, during the current year. - The loan yield was 5.19 percent for the current year, an increase of 53 basis points from the prior year loan yield of 4.66 percent.
- Although the banking industry experienced a significant outflow of deposits, the Company’s core deposits and retail repurchase agreements decreased
$108 million , or 50 basis points, from the prior year end. - Dividends declared in 2023 were
$1.32 per share. - The Company announced the signing of a definitive agreement to acquire Community Financial Group, Inc., the parent company of
Wheatland Bank , a leading easternWashington community bank headquartered inSpokane with total assets of$728 million as ofDecember 31, 2023 . The acquisition is expected to be completedJanuary 31, 2024 .
Financial Summary
At or for the Three Months ended | At or for the Year ended | ||||||||||||||||||||
(Dollars in thousands, except per share and market data) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Operating results | |||||||||||||||||||||
Net income | $ | 54,316 | 52,445 | 54,955 | 61,211 | 79,677 | 222,927 | 303,202 | |||||||||||||
Basic earnings per share | $ | 0.49 | 0.47 | 0.50 | 0.55 | 0.72 | 2.01 | 2.74 | |||||||||||||
Diluted earnings per share | $ | 0.49 | 0.47 | 0.50 | 0.55 | 0.72 | 2.01 | 2.74 | |||||||||||||
Dividends declared per share | $ | 0.33 | 0.33 | 0.33 | 0.33 | 0.33 | 1.32 | 1.32 | |||||||||||||
Market value per share | |||||||||||||||||||||
Closing | $ | 41.32 | 28.50 | 31.17 | 42.01 | 49.42 | 41.32 | 49.42 | |||||||||||||
High | $ | 44.06 | 36.45 | 42.21 | 50.03 | 59.70 | 50.03 | 60.69 | |||||||||||||
Low | $ | 27.36 | 26.84 | 26.77 | 37.07 | 48.64 | 26.77 | 44.43 | |||||||||||||
Selected ratios and other data | |||||||||||||||||||||
Number of common stock shares outstanding | 110,888,942 | 110,879,365 | 110,873,887 | 110,868,713 | 110,777,780 | 110,888,942 | 110,777,780 | ||||||||||||||
Average outstanding shares - basic | 110,884,496 | 110,877,534 | 110,870,964 | 110,824,648 | 110,773,084 | 110,864,501 | 110,757,473 | ||||||||||||||
Average outstanding shares - diluted | 110,907,640 | 110,886,959 | 110,875,535 | 110,881,708 | 110,872,127 | 110,890,447 | 110,827,933 | ||||||||||||||
Return on average assets (annualized) | 0.77 | % | 0.75 | % | 0.81 | % | 0.93 | % | 1.19 | % | 0.81 | % | 1.15 | % | |||||||
Return on average equity (annualized) | 7.40 | % | 7.12 | % | 7.52 | % | 8.54 | % | 11.35 | % | 7.64 | % | 10.43 | % | |||||||
Efficiency ratio | 65.20 | % | 63.31 | % | 62.73 | % | 60.39 | % | 53.18 | % | 62.85 | % | 54.64 | % | |||||||
Dividend payout | 67.35 | % | 70.21 | % | 66.00 | % | 60.00 | % | 45.83 | % | 65.67 | % | 48.18 | % | |||||||
Loan to deposit ratio | 81.36 | % | 79.25 | % | 79.92 | % | 77.09 | % | 74.05 | % | 81.36 | % | 74.05 | % | |||||||
Number of full time equivalent employees | 3,294 | 3,314 | 3,369 | 3,390 | 3,390 | 3,294 | 3,390 | ||||||||||||||
Number of locations | 221 | 221 | 222 | 222 | 221 | 221 | 221 | ||||||||||||||
Number of ATMs | 275 | 274 | 274 | 263 | 265 | 275 | 265 | ||||||||||||||
Net income for 2023 was
The Company’s previously announced agreement to acquire Community Financial Group, Inc., the parent company of
Asset Summary
$ Change from | |||||||||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
Cash and cash equivalents | $ | 1,354,342 | 1,672,094 | 401,995 | (317,752 | ) | 952,347 | ||||||||
Debt securities, available-for-sale | 4,785,719 | 4,741,738 | 5,307,307 | 43,981 | (521,588 | ) | |||||||||
Debt securities, held-to-maturity | 3,502,411 | 3,553,805 | 3,715,052 | (51,394 | ) | (212,641 | ) | ||||||||
Total debt securities | 8,288,130 | 8,295,543 | 9,022,359 | (7,413 | ) | (734,229 | ) | ||||||||
Loans receivable | |||||||||||||||
Residential real estate | 1,704,544 | 1,653,777 | 1,446,008 | 50,767 | 258,536 | ||||||||||
Commercial real estate | 10,303,306 | 10,292,446 | 9,797,047 | 10,860 | 506,259 | ||||||||||
Other commercial | 2,901,863 | 2,916,785 | 2,799,668 | (14,922 | ) | 102,195 | |||||||||
Home equity | 888,013 | 869,963 | 822,232 | 18,050 | 65,781 | ||||||||||
Other consumer | 400,356 | 402,075 | 381,857 | (1,719 | ) | 18,499 | |||||||||
Loans receivable | 16,198,082 | 16,135,046 | 15,246,812 | 63,036 | 951,270 | ||||||||||
Allowance for credit losses | (192,757 | ) | (192,271 | ) | (182,283 | ) | (486 | ) | (10,474 | ) | |||||
Loans receivable, net | 16,005,325 | 15,942,775 | 15,064,529 | 62,550 | 940,796 | ||||||||||
Other assets | 2,094,832 | 2,153,149 | 2,146,492 | (58,317 | ) | (51,660 | ) | ||||||||
Total assets | $ | 27,742,629 | 28,063,561 | 26,635,375 | (320,932 | ) | 1,107,254 |
The Company continued to maintain a strong cash position of
The loan portfolio of
Credit Quality Summary
At or for the Year ended | At or for the Nine Months ended | At or for the Year ended | |||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | ||||||
Allowance for credit losses | |||||||||
Balance at beginning of period | $ | 182,283 | 182,283 | 172,665 | |||||
Provision for credit losses | 20,790 | 16,609 | 17,433 | ||||||
Charge-offs | (15,095 | ) | (10,284 | ) | (14,970 | ) | |||
Recoveries | 4,779 | 3,663 | 7,155 | ||||||
Balance at end of period | $ | 192,757 | 192,271 | 182,283 | |||||
Provision for credit losses | |||||||||
Loan portfolio | $ | 20,790 | 16,609 | 17,433 | |||||
Unfunded loan commitments | (5,995 | ) | (4,827 | ) | 2,530 | ||||
Total provision for credit losses | $ | 14,795 | 11,782 | 19,963 | |||||
Other real estate owned | $ | 1,032 | — | — | |||||
Other foreclosed assets | 471 | 48 | 32 | ||||||
Accruing loans 90 days or more past due | 3,312 | 3,855 | 1,559 | ||||||
Non-accrual loans | 20,816 | 38,380 | 31,151 | ||||||
Total non-performing assets | $ | 25,631 | 42,283 | 32,742 | |||||
Non-performing assets as a percentage of subsidiary assets | 0.09 | % | 0.15 | % | 0.12 | % | |||
Allowance for credit losses as a percentage of non-performing loans | 799 | % | 455 | % | 557 | % | |||
Allowance for credit losses as a percentage of total loans | 1.19 | % | 1.19 | % | 1.20 | % | |||
Net charge-offs as a percentage of total loans | 0.06 | % | 0.04 | % | 0.05 | % | |||
Accruing loans 30-89 days past due | $ | 49,967 | 15,253 | 20,967 | |||||
$ | 1,503 | 1,057 | 2,312 |
Non-performing assets of
Early stage delinquencies (accruing loans 30-89 days past due) of
The current quarter credit loss expense of
Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio
(Dollars in thousands) | Provision for Credit Losses Loans | Net Charge-Offs (Recoveries) | ACL as a Percent of Loans | Accruing Loans 30-89 Days Past Due as a Percent of Loans | Non-Performing Assets to Total Subsidiary Assets | ||||||||||
Fourth quarter 2023 | $ | 4,181 | $ | 3,695 | 1.19 | % | 0.31 | % | 0.09 | % | |||||
Third quarter 2023 | 5,095 | 2,209 | 1.19 | % | 0.09 | % | 0.15 | % | |||||||
Second quarter 2023 | 5,254 | 2,473 | 1.19 | % | 0.16 | % | 0.12 | % | |||||||
First quarter 2023 | 6,260 | 1,939 | 1.20 | % | 0.16 | % | 0.12 | % | |||||||
Fourth quarter 2022 | 6,060 | 1,968 | 1.20 | % | 0.14 | % | 0.12 | % | |||||||
Third quarter 2022 | 8,382 | 3,154 | 1.20 | % | 0.07 | % | 0.13 | % | |||||||
Second quarter 2022 | (1,353 | ) | 1,843 | 1.20 | % | 0.12 | % | 0.16 | % | ||||||
First quarter 2022 | 4,344 | 850 | 1.28 | % | 0.12 | % | 0.24 | % |
Net charge-offs for the current quarter were
The current quarter provision for credit loss expense for loans was
Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on regulatory classification is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.
Liability Summary
$ Change from | ||||||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||
Deposits | ||||||||||||
Non-interest bearing deposits | $ | 6,022,980 | 6,465,353 | 7,690,751 | (442,373 | ) | (1,667,771 | ) | ||||
NOW and DDA accounts | 5,321,257 | 5,253,367 | 5,330,614 | 67,890 | (9,357 | ) | ||||||
Savings accounts | 2,833,887 | 2,872,362 | 3,200,321 | (38,475 | ) | (366,434 | ) | |||||
Money market deposit accounts | 2,831,624 | 2,994,631 | 3,472,281 | (163,007 | ) | (640,657 | ) | |||||
Certificate accounts | 2,915,393 | 2,742,017 | 880,589 | 173,376 | 2,034,804 | |||||||
Core deposits, total | 19,925,141 | 20,327,730 | 20,574,556 | (402,589 | ) | (649,415 | ) | |||||
Wholesale deposits | 4,026 | 67,434 | 31,999 | (63,408 | ) | (27,973 | ) | |||||
Deposits, total | 19,929,167 | 20,395,164 | 20,606,555 | (465,997 | ) | (677,388 | ) | |||||
Repurchase agreements | 1,486,850 | 1,499,696 | 945,916 | (12,846 | ) | 540,934 | ||||||
Deposits and repurchase agreements, total | 21,416,017 | 21,894,860 | 21,552,471 | (478,843 | ) | (136,454 | ) | |||||
— | — | 1,800,000 | — | (1,800,000 | ) | |||||||
FRB Bank Term Funding | 2,740,000 | 2,740,000 | — | — | 2,740,000 | |||||||
Other borrowed funds | 81,695 | 73,752 | 77,293 | 7,943 | 4,402 | |||||||
Subordinated debentures | 132,943 | 132,903 | 132,782 | 40 | 161 | |||||||
Other liabilities | 351,693 | 347,452 | 229,524 | 4,241 | 122,169 | |||||||
Total liabilities | $ | 24,722,348 | 25,188,967 | 23,792,070 | (466,619 | ) | 930,278 |
During the current year, the Company experienced unprecedented fluctuations in the deposit balances and higher deposit rates, primarily due to the volatile interest rate environment. As a result of the Company’s focus on diversified deposits and repurchase agreements, core deposits and retail repurchase agreements decreased
The Company’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, and access to diversified borrowing sources. The Company has available liquidity of
Stockholders’ Equity Summary
$ Change from | |||||||||||||
(Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||
Common equity | $ | 3,394,394 | 3,374,961 | 3,312,097 | 19,433 | 82,297 | |||||||
Accumulated other comprehensive loss | (374,113 | ) | (500,367 | ) | (468,792 | ) | 126,254 | 94,679 | |||||
Total stockholders’ equity | 3,020,281 | 2,874,594 | 2,843,305 | 145,687 | 176,976 | ||||||||
(1,017,263 | ) | (1,019,690 | ) | (1,026,994 | ) | 2,427 | 9,731 | ||||||
Tangible stockholders’ equity | $ | 2,003,018 | 1,854,904 | 1,816,311 | 148,114 | 186,707 |
Stockholders’ equity to total assets | 10.89 | % | 10.24 | % | 10.67 | % | |||||||
Tangible stockholders’ equity to total tangible assets | 7.49 | % | 6.86 | % | 7.09 | % | |||||||
Book value per common share | $ | 27.24 | 25.93 | 25.67 | 1.31 | 1.57 | |||||||
Tangible book value per common share | $ | 18.06 | 16.73 | 16.40 | 1.33 | 1.66 |
Tangible stockholders’ equity of
Cash Dividends
On
Operating Results for Three Months Ended
Compared to
Income Summary
Three Months ended | ||||||||||||||||
(Dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||
Net interest income | ||||||||||||||||
Interest income | $ | 273,496 | 264,906 | 247,365 | 231,888 | 225,085 | ||||||||||
Interest expense | 107,040 | 97,852 | 75,385 | 45,696 | 21,026 | |||||||||||
Total net interest income | 166,456 | 167,054 | 171,980 | 186,192 | 204,059 | |||||||||||
Non-interest income | ||||||||||||||||
Service charges and other fees | 19,115 | 19,304 | 18,967 | 17,771 | 18,734 | |||||||||||
Miscellaneous loan fees and charges | 4,484 | 4,322 | 4,162 | 3,967 | 3,905 | |||||||||||
Gain on sale of loans | 2,228 | 4,046 | 3,528 | 2,400 | 2,175 | |||||||||||
Gain (loss) on sale of securities | 1,712 | (65 | ) | (23 | ) | (114 | ) | 519 | ||||||||
Other income | 3,326 | 2,633 | 2,445 | 3,871 | 3,150 | |||||||||||
Total non-interest income | 30,865 | 30,240 | 29,079 | 27,895 | 28,483 | |||||||||||
Total income | $ | 197,321 | 197,294 | 201,059 | 214,087 | 232,542 | ||||||||||
Net interest margin (tax-equivalent) | 2.56 | % | 2.58 | % | 2.74 | % | 3.08 | % | 3.30 | % | ||||||
$ Change from | ||||||||||||||||
(Dollars in thousands) | 2023 | 2023 | 2023 | 2022 | ||||||||||||
Net interest income | ||||||||||||||||
Interest income | $ | 8,590 | 26,131 | 41,608 | 48,411 | |||||||||||
Interest expense | 9,188 | 31,655 | 61,344 | 86,014 | ||||||||||||
Total net interest income | (598 | ) | (5,524 | ) | (19,736 | ) | (37,603 | ) | ||||||||
Non-interest income | ||||||||||||||||
Service charges and other fees | (189 | ) | 148 | 1,344 | 381 | |||||||||||
Miscellaneous loan fees and charges | 162 | 322 | 517 | 579 | ||||||||||||
Gain on sale of loans | (1,818 | ) | (1,300 | ) | (172 | ) | 53 | |||||||||
Gain (loss) on sale of securities | 1,777 | 1,735 | 1,826 | 1,193 | ||||||||||||
Other income | 693 | 881 | (545 | ) | 176 | |||||||||||
Total non-interest income | 625 | 1,786 | 2,970 | 2,382 | ||||||||||||
Total income | $ | 27 | (3,738 | ) | (16,766 | ) | (35,221 | ) |
Net Interest Income
The current quarter interest income of
The current quarter interest expense of
The Company’s net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 2.56 percent compared to 2.58 percent in the prior quarter and 3.30 percent in the prior year fourth quarter. Although the net interest margin has been negatively impacted by the increase in interest rates during the current year, the Company continued to experience a slower pace in the decline in the net interest margin during the current quarter. The current quarter decrease in net interest margin was 2 basis points compared to a decrease of 16 basis points during the prior quarter.
Non-interest Income
Non-interest income for the current quarter totaled
Non-interest Expense Summary
Three Months ended | |||||||||||||||
(Dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||
Compensation and employee benefits | $ | 71,420 | 77,387 | 78,764 | 81,477 | 79,814 | |||||||||
Occupancy and equipment | 10,533 | 10,553 | 10,827 | 11,665 | 10,734 | ||||||||||
Advertising and promotions | 3,410 | 4,052 | 3,733 | 4,235 | 3,558 | ||||||||||
Data processing | 8,511 | 8,730 | 8,402 | 8,109 | 8,079 | ||||||||||
Other real estate owned and foreclosed assets | 78 | 15 | 14 | 12 | 5 | ||||||||||
Regulatory assessments and insurance | 12,435 | 6,060 | 5,314 | 4,903 | 3,425 | ||||||||||
Core deposit intangibles amortization | 2,427 | 2,428 | 2,427 | 2,449 | 2,664 | ||||||||||
Other expenses | 23,382 | 20,351 | 21,123 | 22,132 | 20,700 | ||||||||||
Total non-interest expense | $ | 132,196 | 129,576 | 130,604 | 134,982 | 128,979 | |||||||||
$ Change from | |||||||||||||||
(Dollars in thousands) | 2023 | 2023 | 2023 | 2022 | |||||||||||
Compensation and employee benefits | $ | (5,967 | ) | (7,344 | ) | (10,057 | ) | (8,394 | ) | ||||||
Occupancy and equipment | (20 | ) | (294 | ) | (1,132 | ) | (201 | ) | |||||||
Advertising and promotions | (642 | ) | (323 | ) | (825 | ) | (148 | ) | |||||||
Data processing | (219 | ) | 109 | 402 | 432 | ||||||||||
Other real estate owned and foreclosed assets | 63 | 64 | 66 | 73 | |||||||||||
Regulatory assessments and insurance | 6,375 | 7,121 | 7,532 | 9,010 | |||||||||||
Core deposit intangibles amortization | (1 | ) | — | (22 | ) | (237 | ) | ||||||||
Other expenses | 3,031 | 2,259 | 1,250 | 2,682 | |||||||||||
Total non-interest expense | $ | 2,620 | 1,592 | (2,786 | ) | 3,217 |
Total non-interest expense of
Federal and State Income Tax Expense
Tax expense during the fourth quarter of 2023 was
Efficiency Ratio
The efficiency ratio was 65.2 percent in the current quarter compared to 63.31 percent in the prior quarter and 53.18 percent in the prior year fourth quarter. The increase from the prior quarter was principally driven by the
Operating Results for Year Ended
Compared to
Income Summary
Year ended | |||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ Change | % Change | |||||||||
Net interest income | |||||||||||||
Interest income | $ | 1,017,655 | $ | 829,640 | $ | 188,015 | 23% | ||||||
Interest expense | 325,973 | 41,261 | 284,712 | 690% | |||||||||
Total net interest income | 691,682 | 788,379 | (96,697 | ) | (12)% | ||||||||
Non-interest income | |||||||||||||
Service charges and other fees | 75,157 | 72,124 | 3,033 | 4% | |||||||||
Miscellaneous loan fees and charges | 16,935 | 15,350 | 1,585 | 10% | |||||||||
Gain on sale of loans | 12,202 | 20,032 | (7,830 | ) | (39)% | ||||||||
Gain on sale of securities | 1,510 | 620 | 890 | 144% | |||||||||
Other income | 12,275 | 12,606 | (331 | ) | (3)% | ||||||||
Total non-interest income | 118,079 | 120,732 | (2,653 | ) | (2)% | ||||||||
Total Income | $ | 809,761 | $ | 909,111 | $ | (99,350 | ) | (11)% | |||||
Net interest margin (tax-equivalent) | 2.73 | % | 3.27 | % |
Net Interest Income
Net-interest income of
Interest expense of
The net interest margin as a percentage of earning assets, on a tax-equivalent basis, during 2023 was 2.73 percent, a 54 basis points decrease from the net interest margin of 3.27 percent for the prior year. The core net interest margin, excluding discount accretion, the impact from non-accrual interest and the impact from the Paycheck Protection Program loans, was 2.71 percent for 2023, which was a 49 basis points decrease from the core margin of 3.20 percent in the same period of the prior year.
Non-interest Income
Non-interest income of
Non-interest Expense Summary
Year ended | |||||||||||
(Dollars in thousands) | 2023 | 2022 | $ Change | % Change | |||||||
Compensation and employee benefits | $ | 309,048 | $ | 319,303 | $ | (10,255) | (3)% | ||||
Occupancy and equipment | 43,578 | 43,261 | 317 | 1% | |||||||
Advertising and promotions | 15,430 | 14,324 | 1,106 | 8% | |||||||
Data processing | 33,752 | 30,823 | 2,929 | 10% | |||||||
Other real estate owned and foreclosed assets | 119 | 77 | 42 | 55% | |||||||
Regulatory assessments and insurance | 28,712 | 12,904 | 15,808 | 123% | |||||||
Core deposit intangibles amortization | 9,731 | 10,658 | (927) | (9)% | |||||||
Other expenses | 86,988 | 87,518 | (530) | (1)% | |||||||
Total non-interest expense | $ | 527,358 | $ | 518,868 | $ | 8,490 | 2% |
Total non-interest expense of
Provision for Credit Losses
The provision for credit loss expense was
Federal and State Income Tax Expense
Tax expense of
Efficiency Ratio
The efficiency ratio was 62.85 percent for 2023 compared to 54.64 percent for 2022. The increase from the prior year was primarily attributable to the increase in interest expense in the current year that outpaced the increase in interest income.
Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are based on assumptions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those made in this news release:
- risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
- changes in monetary and fiscal policies, including interest rate policies of the
Federal Reserve Board , which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity; - legislative or regulatory changes, including increased
FDIC insurance rates and assessments or increased banking and consumer protection regulations, that may adversely affect the Company’s business; - risks related to overall economic conditions, including the impact on the economy of a rising interest rate environment, inflationary pressures, and geopolitical instability, including the wars in
Ukraine and theMiddle East ; - risks associated with the Company’s ability to negotiate, complete, and successfully integrate any future acquisitions;
- costs or difficulties related to the completion and integration of pending or future acquisitions;
- impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
- reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
- deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company's ability to obtain and maintain customers;
- changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
- risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;
- risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
- material failure, potential interruption or breach in security of the Company’s systems or changes in technological which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
- risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
- success in managing risks involved in the foregoing; and
- effects of any reputational damage to the Company resulting from any of the foregoing.
The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.
Conference Call Information
A conference call for investors is scheduled for
About
Unaudited Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | ||||||
Assets | |||||||||
Cash on hand and in banks | $ | 246,525 | 264,067 | 300,194 | |||||
Interest bearing cash deposits | 1,107,817 | 1,408,027 | 101,801 | ||||||
Cash and cash equivalents | 1,354,342 | 1,672,094 | 401,995 | ||||||
Debt securities, available-for-sale | 4,785,719 | 4,741,738 | 5,307,307 | ||||||
Debt securities, held-to-maturity | 3,502,411 | 3,553,805 | 3,715,052 | ||||||
Total debt securities | 8,288,130 | 8,295,543 | 9,022,359 | ||||||
Loans held for sale, at fair value | 15,691 | 29,027 | 12,314 | ||||||
Loans receivable | 16,198,082 | 16,135,046 | 15,246,812 | ||||||
Allowance for credit losses | (192,757 | ) | (192,271 | ) | (182,283 | ) | |||
Loans receivable, net | 16,005,325 | 15,942,775 | 15,064,529 | ||||||
Premises and equipment, net | 421,791 | 415,343 | 398,100 | ||||||
Other real estate owned and foreclosed assets | 1,503 | 48 | 32 | ||||||
Accrued interest receivable | 94,526 | 104,476 | 83,538 | ||||||
Deferred tax asset | 159,070 | 203,745 | 193,187 | ||||||
Core deposit intangible, net | 31,870 | 34,297 | 41,601 | ||||||
985,393 | 985,393 | 985,393 | |||||||
Non-marketable equity securities | 12,755 | 11,330 | 82,015 | ||||||
Bank-owned life insurance | 171,101 | 170,175 | 169,068 | ||||||
Other assets | 201,132 | 199,315 | 181,244 | ||||||
Total assets | $ | 27,742,629 | 28,063,561 | 26,635,375 | |||||
Liabilities | |||||||||
Non-interest bearing deposits | $ | 6,022,980 | 6,465,353 | 7,690,751 | |||||
Interest bearing deposits | 13,906,187 | 13,929,811 | 12,915,804 | ||||||
Securities sold under agreements to repurchase | 1,486,850 | 1,499,696 | 945,916 | ||||||
FHLB advances | — | — | 1,800,000 | ||||||
FRB Bank Term Funding | 2,740,000 | 2,740,000 | — | ||||||
Other borrowed funds | 81,695 | 73,752 | 77,293 | ||||||
Subordinated debentures | 132,943 | 132,903 | 132,782 | ||||||
Accrued interest payable | 125,907 | 91,874 | 4,331 | ||||||
Other liabilities | 225,786 | 255,578 | 225,193 | ||||||
Total liabilities | 24,722,348 | 25,188,967 | 23,792,070 | ||||||
Commitments and Contingent Liabilities | |||||||||
Stockholders’ Equity | |||||||||
Preferred shares, | — | — | — | ||||||
Common stock, | 1,109 | 1,109 | 1,108 | ||||||
Paid-in capital | 2,350,104 | 2,348,305 | 2,344,005 | ||||||
Retained earnings - substantially restricted | 1,043,181 | 1,025,547 | 966,984 | ||||||
Accumulated other comprehensive loss | (374,113 | ) | (500,367 | ) | (468,792 | ) | |||
Total stockholders’ equity | 3,020,281 | 2,874,594 | 2,843,305 | ||||||
Total liabilities and stockholders’ equity | $ | 27,742,629 | 28,063,561 | 26,635,375 |
Unaudited Condensed Consolidated Statements of Operations
Three Months ended | Year ended | |||||||||||
(Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||
Interest Income | ||||||||||||
Investment securities | $ | 57,233 | 53,397 | 43,818 | 201,930 | 169,035 | ||||||
Residential real estate loans | 19,820 | 18,594 | 14,964 | 71,328 | 57,243 | |||||||
Commercial loans | 175,957 | 173,437 | 150,462 | 669,663 | 548,969 | |||||||
Consumer and other loans | 20,486 | 19,478 | 15,841 | 74,734 | 54,393 | |||||||
Total interest income | 273,496 | 264,906 | 225,085 | 1,017,655 | 829,640 | |||||||
Interest Expense | ||||||||||||
Deposits | 63,484 | 54,697 | 4,642 | 162,426 | 14,526 | |||||||
Securities sold under agreements to repurchase | 12,229 | 10,972 | 1,765 | 36,414 | 3,200 | |||||||
— | — | 12,689 | 26,910 | 17,317 | ||||||||
FRB Bank Term Funding | 30,228 | 30,229 | — | 93,388 | — | |||||||
Other borrowed funds | (372 | ) | 489 | 464 | 1,056 | 1,329 | ||||||
Subordinated debentures | 1,471 | 1,465 | 1,466 | 5,779 | 4,889 | |||||||
Total interest expense | 107,040 | 97,852 | 21,026 | 325,973 | 41,261 | |||||||
Net Interest Income | 166,456 | 167,054 | 204,059 | 691,682 | 788,379 | |||||||
Provision for credit losses | 3,013 | 3,539 | 6,124 | 14,795 | 19,963 | |||||||
Net interest income after provision for credit losses | 163,443 | 163,515 | 197,935 | 676,887 | 768,416 | |||||||
Non-Interest Income | ||||||||||||
Service charges and other fees | 19,115 | 19,304 | 18,734 | 75,157 | 72,124 | |||||||
Miscellaneous loan fees and charges | 4,484 | 4,322 | 3,905 | 16,935 | 15,350 | |||||||
Gain on sale of loans | 2,228 | 4,046 | 2,175 | 12,202 | 20,032 | |||||||
Gain (loss) on sale of securities | 1,712 | (65 | ) | 519 | 1,510 | 620 | ||||||
Other income | 3,326 | 2,633 | 3,150 | 12,275 | 12,606 | |||||||
Total non-interest income | 30,865 | 30,240 | 28,483 | 118,079 | 120,732 | |||||||
Non-Interest Expense | ||||||||||||
Compensation and employee benefits | 71,420 | 77,387 | 79,814 | 309,048 | 319,303 | |||||||
Occupancy and equipment | 10,533 | 10,553 | 10,734 | 43,578 | 43,261 | |||||||
Advertising and promotions | 3,410 | 4,052 | 3,558 | 15,430 | 14,324 | |||||||
Data processing | 8,511 | 8,730 | 8,079 | 33,752 | 30,823 | |||||||
Other real estate owned and foreclosed assets | 78 | 15 | 5 | 119 | 77 | |||||||
Regulatory assessments and insurance | 12,435 | 6,060 | 3,425 | 28,712 | 12,904 | |||||||
Core deposit intangibles amortization | 2,427 | 2,428 | 2,664 | 9,731 | 10,658 | |||||||
Other expenses | 23,382 | 20,351 | 20,700 | 86,988 | 87,518 | |||||||
Total non-interest expense | 132,196 | 129,576 | 128,979 | 527,358 | 518,868 | |||||||
Income Before Income Taxes | 62,112 | 64,179 | 97,439 | 267,608 | 370,280 | |||||||
Federal and state income tax expense | 7,796 | 11,734 | 17,762 | 44,681 | 67,078 | |||||||
Net Income | $ | 54,316 | 52,445 | 79,677 | 222,927 | 303,202 |
Average Balance Sheets
Three Months ended | |||||||||||||||||
(Dollars in thousands) | Average Balance | Interest & Dividends | Average Yield/ Rate | Average Balance | Interest & Dividends | Average Yield/ Rate | |||||||||||
Assets | |||||||||||||||||
Residential real estate loans | $ | 1,700,598 | $ | 19,820 | 4.66% | $ | 1,649,947 | $ | 18,594 | 4.51% | |||||||
Commercial loans 1 | 13,196,412 | 177,397 | 5.33% | 13,120,479 | 174,822 | 5.29% | |||||||||||
Consumer and other loans | 1,279,626 | 20,486 | 6.35% | 1,263,775 | 19,478 | 6.11% | |||||||||||
Total loans 2 | 16,176,636 | 217,703 | 5.34% | 16,034,201 | 212,894 | 5.27% | |||||||||||
Tax-exempt debt securities 3 | 1,725,858 | 14,738 | 3.42% | 1,732,227 | 14,486 | 3.34% | |||||||||||
Taxable debt securities 4 | 8,466,825 | 44,665 | 2.11% | 8,485,157 | 41,052 | 1.94% | |||||||||||
Total earning assets | 26,369,319 | 277,106 | 4.17% | 26,251,585 | 268,432 | 4.06% | |||||||||||
1,018,423 | 1,020,868 | ||||||||||||||||
Non-earning assets | 487,979 | 528,145 | |||||||||||||||
Total assets | $ | 27,875,721 | $ | 27,800,598 | |||||||||||||
Liabilities | |||||||||||||||||
Non-interest bearing deposits | $ | 6,262,801 | $ | — | —% | $ | 6,461,350 | $ | — | —% | |||||||
NOW and DDA accounts | 5,245,602 | 14,751 | 1.12% | 5,231,741 | 12,906 | 0.98% | |||||||||||
Savings accounts | 2,843,788 | 4,848 | 0.68% | 2,840,620 | 3,492 | 0.49% | |||||||||||
Money market deposit accounts | 2,911,054 | 13,600 | 1.85% | 3,039,177 | 12,646 | 1.65% | |||||||||||
Certificate accounts | 2,872,192 | 29,563 | 4.08% | 2,462,266 | 23,151 | 3.73% | |||||||||||
Total core deposits | 20,135,437 | 62,762 | 1.24% | 20,035,154 | 52,195 | 1.03% | |||||||||||
Wholesale deposits 5 | 53,841 | 722 | 5.32% | 188,523 | 2,502 | 5.27% | |||||||||||
Repurchase agreements | 1,488,419 | 12,229 | 3.26% | 1,401,765 | 10,972 | 3.11% | |||||||||||
FHLB advances | — | — | —% | — | — | —% | |||||||||||
FRB Bank Term Funding | 2,740,000 | 30,228 | 4.38% | 2,740,000 | 30,229 | 4.38% | |||||||||||
Subordinated debentures and other borrowed funds | 211,570 | 1,099 | 2.06% | 208,336 | 1,954 | 3.72% | |||||||||||
Total funding liabilities | 24,629,267 | 107,040 | 1.72% | 24,573,778 | 97,852 | 1.58% | |||||||||||
Other liabilities | 332,740 | 302,564 | |||||||||||||||
Total liabilities | 24,962,007 | 24,876,342 | |||||||||||||||
Stockholders’ Equity | |||||||||||||||||
Common stock | 1,109 | 1,109 | |||||||||||||||
Paid-in capital | 2,349,177 | 2,347,323 | |||||||||||||||
Retained earnings | 1,034,258 | 1,035,276 | |||||||||||||||
Accumulated other comprehensive loss | (470,830 | ) | (459,452 | ) | |||||||||||||
Total stockholders’ equity | 2,913,714 | 2,924,256 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 27,875,721 | $ | 27,800,598 | |||||||||||||
Net interest income (tax-equivalent) | $ | 170,066 | $ | 170,580 | |||||||||||||
Net interest spread (tax-equivalent) | 2.45% | 2.48% | |||||||||||||||
Net interest margin (tax-equivalent) | 2.56% | 2.58% |
______________________________
1 Includes tax effect of
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of
4 Includes tax effect of
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
Average Balance Sheets (continued)
Three Months ended | |||||||||||||||||
(Dollars in thousands) | Average Balance | Interest & Dividends | Average Yield/ Rate | Average Balance | Interest & Dividends | Average Yield/ Rate | |||||||||||
Assets | |||||||||||||||||
Residential real estate loans | $ | 1,700,598 | $ | 19,820 | 4.66% | $ | 1,424,550 | $ | 14,964 | 4.20% | |||||||
Commercial loans 1 | 13,196,412 | 177,397 | 5.33% | 12,419,414 | 152,169 | 4.86% | |||||||||||
Consumer and other loans | 1,279,626 | 20,486 | 6.35% | 1,183,727 | 15,841 | 5.31% | |||||||||||
Total loans 2 | 16,176,636 | 217,703 | 5.34% | 15,027,691 | 182,974 | 4.83% | |||||||||||
Tax-exempt debt securities 3 | 1,725,858 | 14,738 | 3.42% | 1,960,007 | 17,877 | 3.65% | |||||||||||
Taxable debt securities 4 | 8,466,825 | 44,665 | 2.11% | 8,200,203 | 29,717 | 1.45% | |||||||||||
Total earning assets | 26,369,319 | 277,106 | 4.17% | 25,187,901 | 230,568 | 3.63% | |||||||||||
1,018,423 | 1,028,277 | ||||||||||||||||
Non-earning assets | 487,979 | 436,260 | |||||||||||||||
Total assets | $ | 27,875,721 | $ | 26,652,438 | |||||||||||||
Liabilities | |||||||||||||||||
Non-interest bearing deposits | $ | 6,262,801 | $ | — | —% | $ | 8,010,053 | $ | — | —% | |||||||
NOW and DDA accounts | 5,245,602 | 14,751 | 1.12% | 5,388,062 | 1,077 | 0.08% | |||||||||||
Savings accounts | 2,843,788 | 4,848 | 0.68% | 3,255,091 | 355 | 0.04% | |||||||||||
Money market deposit accounts | 2,911,054 | 13,600 | 1.85% | 3,679,866 | 2,168 | 0.23% | |||||||||||
Certificate accounts | 2,872,192 | 29,563 | 4.08% | 882,490 | 834 | 0.37% | |||||||||||
Total core deposits | 20,135,437 | 62,762 | 1.24% | 21,215,562 | 4,434 | 0.08% | |||||||||||
Wholesale deposits 5 | 53,841 | 722 | 5.32% | 22,462 | 208 | 3.69% | |||||||||||
Repurchase agreements | 1,488,419 | 12,229 | 3.26% | 873,819 | 1,765 | 0.80% | |||||||||||
FHLB advances | — | — | —% | 1,291,087 | 12,689 | 3.85% | |||||||||||
FRB Bank Term Funding | 2,740,000 | 30,228 | 4.38% | — | — | —% | |||||||||||
Subordinated debentures and other borrowed funds | 211,570 | 1,099 | 2.06% | 211,953 | 1,930 | 3.61% | |||||||||||
Total funding liabilities | 24,629,267 | 107,040 | 1.72% | 23,614,883 | 21,026 | 0.35% | |||||||||||
Other liabilities | 332,740 | 252,298 | |||||||||||||||
Total liabilities | 24,962,007 | 23,867,181 | |||||||||||||||
Stockholders’ Equity | |||||||||||||||||
Common stock | 1,109 | 1,108 | |||||||||||||||
Paid-in capital | 2,349,177 | 2,343,157 | |||||||||||||||
Retained earnings | 1,034,258 | 946,195 | |||||||||||||||
Accumulated other comprehensive loss | (470,830 | ) | (505,203 | ) | |||||||||||||
Total stockholders’ equity | 2,913,714 | 2,785,257 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 27,875,721 | $ | 26,652,438 | |||||||||||||
Net interest income (tax-equivalent) | $ | 170,066 | $ | 209,542 | |||||||||||||
Net interest spread (tax-equivalent) | 2.45% | 3.28% | |||||||||||||||
Net interest margin (tax-equivalent) | 2.56% | 3.30% |
______________________________
1 Includes tax effect of
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of
4 Includes tax effect of
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
Average Balance Sheets (continued)
Year ended | |||||||||||||||||
(Dollars in thousands) | Average Balance | Interest & Dividends | Average Yield/ Rate | Average Balance | Interest & Dividends | Average Yield/ Rate | |||||||||||
Assets | |||||||||||||||||
Residential real estate loans | $ | 1,603,600 | $ | 71,328 | 4.45% | $ | 1,284,029 | $ | 57,243 | 4.46% | |||||||
Commercial loans 1 | 12,982,708 | 675,549 | 5.20% | 11,902,971 | 555,244 | 4.66% | |||||||||||
Consumer and other loans | 1,247,114 | 74,734 | 5.99% | 1,131,000 | 54,393 | 4.81% | |||||||||||
Total loans 2 | 15,833,422 | 821,611 | 5.19% | 14,318,000 | 666,880 | 4.66% | |||||||||||
Tax-exempt debt securities 3 | 1,740,746 | 59,716 | 3.43% | 1,916,731 | 70,438 | 3.67% | |||||||||||
Taxable debt securities 4 | 8,297,203 | 152,003 | 1.83% | 8,546,792 | 113,952 | 1.33% | |||||||||||
Total earning assets | 25,871,371 | 1,033,330 | 3.99% | 24,781,523 | 851,270 | 3.44% | |||||||||||
1,022,052 | 1,032,263 | ||||||||||||||||
Non-earning assets | 504,698 | 603,401 | |||||||||||||||
Total assets | $ | 27,398,121 | $ | 26,417,187 | |||||||||||||
Liabilities | |||||||||||||||||
Non-interest bearing deposits | $ | 6,642,339 | $ | — | —% | $ | 8,005,821 | $ | — | —% | |||||||
NOW and DDA accounts | 5,167,117 | 37,357 | 0.72% | 5,387,277 | 3,439 | 0.06% | |||||||||||
Savings accounts | 2,908,584 | 9,918 | 0.34% | 3,270,799 | 1,191 | 0.04% | |||||||||||
Money market deposit accounts | 3,166,914 | 42,254 | 1.33% | 3,926,737 | 6,401 | 0.16% | |||||||||||
Certificate accounts | 1,949,206 | 64,176 | 3.29% | 955,829 | 3,249 | 0.34% | |||||||||||
Total core deposits | 19,834,160 | 153,705 | 0.77% | 21,546,463 | 14,280 | 0.07% | |||||||||||
Wholesale deposits 5 | 173,231 | 8,721 | 5.03% | 11,862 | 246 | 2.07% | |||||||||||
Repurchase agreements | 1,301,223 | 36,414 | 2.80% | 920,955 | 3,200 | 0.35% | |||||||||||
FHLB advances | 551,986 | 26,910 | 4.81% | 584,562 | 17,317 | 2.92% | |||||||||||
FRB Bank Term Funding | 2,133,658 | 93,388 | 4.38% | — | — | —% | |||||||||||
Subordinated debentures and other borrowed funds | 209,567 | 6,835 | 3.26% | 196,139 | 6,218 | 3.17% | |||||||||||
Total funding liabilities | 24,203,825 | 325,973 | 1.35% | 23,259,981 | 41,261 | 0.18% | |||||||||||
Other liabilities | 275,359 | 249,832 | |||||||||||||||
Total liabilities | 24,479,184 | 23,509,813 | |||||||||||||||
Stockholders’ Equity | |||||||||||||||||
Common stock | 1,109 | 1,107 | |||||||||||||||
Paid-in capital | 2,346,575 | 2,340,952 | |||||||||||||||
Retained earnings | 1,021,469 | 897,587 | |||||||||||||||
Accumulated other comprehensive loss | (450,216 | ) | (332,272 | ) | |||||||||||||
Total stockholders’ equity | 2,918,937 | 2,907,374 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 27,398,121 | $ | 26,417,187 | |||||||||||||
Net interest income (tax-equivalent) | $ | 707,357 | $ | 810,009 | |||||||||||||
Net interest spread (tax-equivalent) | 2.64% | 3.26% | |||||||||||||||
Net interest margin (tax-equivalent) | 2.73% | 3.27% |
______________________________
1 Includes tax effect of
2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
3 Includes tax effect of
4 Includes tax effect of
5 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
Loan Portfolio by Regulatory Classification
Loans Receivable, by Loan Type | % Change from | ||||||||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
Custom and owner occupied construction | $ | 290,572 | $ | 306,106 | $ | 298,461 | (5)% | (3)% | |||||||
Pre-sold and spec construction | 236,596 | 287,048 | 297,895 | (18)% | (21)% | ||||||||||
Total residential construction | 527,168 | 593,154 | 596,356 | (11)% | (12)% | ||||||||||
Land development | 232,966 | 234,995 | 219,842 | (1)% | 6% | ||||||||||
Consumer land or lots | 187,545 | 184,685 | 206,604 | 2% | (9)% | ||||||||||
Unimproved land | 87,739 | 87,089 | 104,662 | 1% | (16)% | ||||||||||
Developed lots for operative builders | 56,142 | 62,485 | 60,987 | (10)% | (8)% | ||||||||||
Commercial lots | 87,185 | 84,194 | 93,952 | 4% | (7)% | ||||||||||
Other construction | 900,547 | 982,384 | 938,406 | (8)% | (4)% | ||||||||||
Total land, lot, and other construction | 1,552,124 | 1,635,832 | 1,624,453 | (5)% | (4)% | ||||||||||
Owner occupied | 3,035,768 | 2,976,821 | 2,833,469 | 2% | 7% | ||||||||||
Non-owner occupied | 3,742,916 | 3,765,266 | 3,531,673 | (1)% | 6% | ||||||||||
Total commercial real estate | 6,778,684 | 6,742,087 | 6,365,142 | 1% | 6% | ||||||||||
Commercial and industrial | 1,363,479 | 1,363,198 | 1,377,888 | —% | (1)% | ||||||||||
Agriculture | 772,458 | 785,208 | 735,553 | (2)% | 5% | ||||||||||
1st lien | 2,127,989 | 2,054,497 | 1,808,502 | 4% | 18% | ||||||||||
Junior lien | 47,230 | 47,490 | 40,445 | (1)% | 17% | ||||||||||
Total 1-4 family | 2,175,219 | 2,101,987 | 1,848,947 | 3% | 18% | ||||||||||
Multifamily residential | 796,538 | 714,822 | 622,185 | 11% | 28% | ||||||||||
Home equity lines of credit | 979,891 | 950,204 | 872,899 | 3% | 12% | ||||||||||
Other consumer | 229,154 | 233,980 | 220,035 | (2)% | 4% | ||||||||||
Total consumer | 1,209,045 | 1,184,184 | 1,092,934 | 2% | 11% | ||||||||||
States and political subdivisions | 834,947 | 833,618 | 797,656 | —% | 5% | ||||||||||
Other | 204,111 | 209,983 | 198,012 | (3)% | 3% | ||||||||||
Total loans receivable, including loans held for sale | 16,213,773 | 16,164,073 | 15,259,126 | —% | 6% | ||||||||||
Less loans held for sale 1 | (15,691 | ) | (29,027 | ) | (12,314 | ) | (46)% | 27% | |||||||
Total loans receivable | $ | 16,198,082 | $ | 16,135,046 | $ | 15,246,812 | —% | 6% |
______________________________
1 Loans held for sale are primarily 1st lien 1-4 family loans.
Credit Quality Summary by Regulatory Classification
Non-performing Assets, by Loan Type | Non- Accrual Loans | Accruing Loans 90 Days or More Past Due | Other real estate owned and foreclosed assets | |||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | 2023 | 2023 | 2023 | ||||||
Custom and owner occupied construction | $ | 214 | 219 | 224 | 214 | — | — | |||||
Pre-sold and spec construction | 763 | 763 | 389 | — | 763 | — | ||||||
Total residential construction | 977 | 982 | 613 | 214 | 763 | — | ||||||
Land development | 35 | 80 | 138 | 35 | — | — | ||||||
Consumer land or lots | 96 | 314 | 278 | 96 | — | — | ||||||
Unimproved land | — | 36 | 78 | — | — | — | ||||||
Developed lots for operative builders | 608 | 608 | 251 | — | 608 | — | ||||||
Commercial lots | 47 | 188 | — | — | 47 | — | ||||||
Other construction | — | 12,884 | 12,884 | — | — | — | ||||||
Total land, lot and other construction | 786 | 14,110 | 13,629 | 131 | 655 | — | ||||||
Owner occupied | 1,838 | 1,445 | 2,076 | 821 | — | 1,017 | ||||||
Non-owner occupied | 11,016 | 15,105 | 805 | 10,757 | 259 | — | ||||||
Total commercial real estate | 12,854 | 16,550 | 2,881 | 11,578 | 259 | 1,017 | ||||||
Commercial and Industrial | 1,971 | 1,367 | 3,326 | 1,245 | 575 | 151 | ||||||
Agriculture | 2,558 | 2,450 | 2,574 | 2,557 | 1 | — | ||||||
1st lien | 2,664 | 2,766 | 2,678 | 2,533 | 116 | 15 | ||||||
Junior lien | 180 | 363 | 166 | 144 | 36 | — | ||||||
Total 1-4 family | 2,844 | 3,129 | 2,844 | 2,677 | 152 | 15 | ||||||
Multifamily residential | 395 | — | 4,535 | — | 395 | — | ||||||
Home equity lines of credit | 2,043 | 1,612 | 1,393 | 1,778 | 265 | — | ||||||
Other consumer | 1,187 | 942 | 911 | 636 | 231 | 320 | ||||||
Total consumer | 3,230 | 2,554 | 2,304 | 2,414 | 496 | 320 | ||||||
Other | 16 | 1,141 | 36 | — | 16 | — | ||||||
Total | $ | 25,631 | 42,283 | 32,742 | 20,816 | 3,312 | 1,503 |
Credit Quality Summary by Regulatory Classification (continued)
Accruing 30-89 Days Delinquent Loans, by Loan Type | % Change from | |||||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||
Custom and owner occupied construction | $ | 2,549 | $ | — | $ | 1,082 | n/m | 136% | ||||
Pre-sold and spec construction | 1,219 | 599 | 1,712 | 104% | (29)% | |||||||
Total residential construction | 3,768 | 599 | 2,794 | 529% | 35% | |||||||
Land development | 163 | 44 | — | 270% | n/m | |||||||
Consumer land or lots | 624 | 528 | 442 | 18% | 41% | |||||||
Unimproved land | — | 87 | 120 | (100)% | (100)% | |||||||
Developed lots for operative builders | — | — | 958 | n/m | (100)% | |||||||
Commercial lots | 2,159 | 1,245 | 47 | 73% | 4,494% | |||||||
Other construction | — | — | 209 | n/m | (100)% | |||||||
Total land, lot and other construction | 2,946 | 1,904 | 1,776 | 55% | 66% | |||||||
Owner occupied | 2,222 | 652 | 3,478 | 241% | (36)% | |||||||
Non-owner occupied | 14,471 | 213 | 496 | 6,694% | 2,818% | |||||||
Total commercial real estate | 16,693 | 865 | 3,974 | 1,830% | 320% | |||||||
Commercial and industrial | 12,905 | 2,946 | 3,439 | 338% | 275% | |||||||
Agriculture | 594 | 604 | 1,367 | (2)% | (57)% | |||||||
1st lien | 3,768 | 1,006 | 2,174 | 275% | 73% | |||||||
Junior lien | 1 | 355 | 190 | (100)% | (99)% | |||||||
Total 1-4 family | 3,769 | 1,361 | 2,364 | 177% | 59% | |||||||
Multifamily Residential | — | — | 492 | n/m | (100)% | |||||||
Home equity lines of credit | 4,518 | 3,638 | 1,182 | 24% | 282% | |||||||
Other consumer | 3,264 | 1,821 | 1,824 | 79% | 79% | |||||||
Total consumer | 7,782 | 5,459 | 3,006 | 43% | 159% | |||||||
States and political subdivisions | — | — | 28 | n/m | (100)% | |||||||
Other | 1,510 | 1,515 | 1,727 | —% | (13)% | |||||||
Total | $ | 49,967 | $ | 15,253 | $ | 20,967 | 228% | 138% |
______________________________
n/m - not measurable
Credit Quality Summary by Regulatory Classification (continued)
Net Charge-Offs (Recoveries), Year-to-Date Period Ending, By Loan Type | Charge-Offs | Recoveries | |||||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | 2023 | 2023 | ||||||||
Custom and owner occupied construction | $ | — | — | 17 | — | — | |||||||
Pre-sold and spec construction | (15 | ) | (12 | ) | (15 | ) | — | 15 | |||||
Total residential construction | (15 | ) | (12 | ) | 2 | — | 15 | ||||||
Land development | (135 | ) | (134 | ) | (34 | ) | — | 135 | |||||
Consumer land or lots | (19 | ) | (14 | ) | (46 | ) | — | 19 | |||||
Other construction | 889 | — | — | 889 | — | ||||||||
Total land, lot and other construction | 735 | (148 | ) | (80 | ) | 889 | 154 | ||||||
Owner occupied | (59 | ) | (104 | ) | 555 | 66 | 125 | ||||||
Non-owner occupied | 799 | 500 | (242 | ) | 807 | 8 | |||||||
Total commercial real estate | 740 | 396 | 313 | 873 | 133 | ||||||||
Commercial and industrial | 364 | (11 | ) | (70 | ) | 1,040 | 676 | ||||||
Agriculture | — | — | (7 | ) | — | — | |||||||
1st lien | 66 | 98 | (109 | ) | 110 | 44 | |||||||
Junior lien | 24 | 32 | (302 | ) | 49 | 25 | |||||||
Total 1-4 family | 90 | 130 | (411 | ) | 159 | 69 | |||||||
Multifamily residential | (136 | ) | — | 136 | — | 136 | |||||||
Home equity lines of credit | (6 | ) | 20 | (91 | ) | 129 | 135 | ||||||
Other consumer | 1,097 | 816 | 451 | 1,368 | 271 | ||||||||
Total consumer | 1,091 | 836 | 360 | 1,497 | 406 | ||||||||
Other | 7,447 | 5,430 | 7,572 | 10,637 | 3,190 | ||||||||
Total | $ | 10,316 | 6,621 | 7,815 | 15,095 | 4,779 |
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Source:
2024 GlobeNewswire, Inc., source