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Press release from PR Newswire

Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 2012

Thursday, April 19, 2012

Glacier Bancorp, Inc. Announces Results for the Quarter Ended March 31, 201216:30 EDT Thursday, April 19, 2012KALISPELL, Mont., April 19, 2012 /PRNewswire/ --HIGHLIGHTS: Net income for the quarter increased 59 percent to $16.3 million and diluted earnings per share increased 64 percent to $0.23 from the prior year first quarter. Annualized return on average equity was 7.58 percent for the current quarter compared to 4.95 percent for the prior year first quarter. Non-interest deposits increased $28.2 million, or 11 percent annualized, during the current quarter from the prior quarter. Dividend declared of $0.13 per share during the quarter.  Results SummaryThree Months ended(Unaudited - Dollars in thousands, March 31,March 31, except per share data)20122011Net income$16,33310,285Diluted earnings per share$0.230.14Return on average assets (annualized)0.91%0.62%Return on average equity (annualized)7.58%4.95%Glacier Bancorp, Inc. (Nasdaq GS: GBCI) reported net income for the current quarter of $16.3 million, an increase of $6.0 million, or 59 percent, compared to $10.3 million for the prior year first quarter.  Diluted earnings per share for the current quarter was $0.23 per share, an increase of 64 percent from the prior year first quarter earnings per share of $0.14.  "Our performance continues to move in the right direction, although loan growth remains a formidable challenge for us." said Mick Blodnick, President and Chief Executive Officer.  "The reduction in our credit costs was the main driver that led to better earnings this quarter, a trend that we expect should continue this year,"  Blodnick said.Asset Summary$ Change from$ Change fromMarch 31,December 31,March 31,December 31,March 31,(Unaudited - Dollars in thousands)20122011201120112011Cash and cash equivalents$    131,757128,03298,1043,72533,653Investment securities, available-for-sale3,239,0193,126,7432,705,709112,276533,310Loans receivable     Residential real estate515,405516,807543,229(1,402)(27,824)     Commercial 2,283,4882,295,9272,404,731(12,439)(121,243)     Consumer and other634,318653,401699,026(19,083)(64,708)          Loans receivable3,433,2113,466,1353,646,986(32,924)(213,775)     Allowance for loan and lease losses(136,586)(137,516)(140,829)9304,243          Loans receivable, net3,296,6253,328,6193,506,157(31,994)(209,532)Other assets574,444604,512599,894(30,068)(25,450)          Total assets$ 7,241,8457,187,9066,909,86453,939331,981Investment securities increased $112 million, or 4 percent, during the current quarter and increased $533 million, or 20 percent, from March 31, 2011.  During the current quarter and previous twelve months, the Company purchased investment securities to primarily offset the lack of loan growth and to maintain interest income.  The increase in investment securities for the current quarter occurred primarily in corporate and municipal bonds.  Investment securities represent 45 percent of total assets at March 31, 2012 versus 44 percent at December 31, 2011 and 39 percent at March 31, 2011.  At March 31, 2012, the loan portfolio was $3.433 billion, a decrease of $32.9 million, or 1 percent, during the current quarter.  During the past twelve months, the loan portfolio decreased $214 million, or 6 percent, from total loans of $3.647 billion at March 31, 2011.  The continued downturn in the economy and resulting lack of loan demand were the primary reasons for the decrease in the loan portfolio.  Although there was a decrease in the loan portfolio during the current quarter, the Company was encouraged by the slowing rate of decline which hasn't occurred since 2009.  The largest decrease in dollars and percentage decrease during the current quarter was in consumer and other loans which decreased $19.1 million, or 3 percent, from December 31, 2011.  The decrease in consumer and other loans was primarily driven by the Company reducing its exposure to consumer land and lot loans in combination with customers paying down their lines of credit and reducing other debt.  Excluding net charge-offs of $9.6 million and loans transferred to other real estate owned of $11.0 million, loans decreased $12.3 million, or .4 percent, during the current quarter.  The Company continues to reduce its exposure to land, lot and other construction loans which totaled $361 million as of March 31, 2012, a decrease of $139 million, or 28 percent, since the prior year first quarter.  Credit Quality SummaryAt or for the ThreeAt or for theAt or for the ThreeMonths endedYear endedMonths ended(Unaudited - Dollars in thousands)March 31, 2012December 31, 2011March 31, 2011Allowance for loan and lease lossesBalance at beginning of period$137,516137,107137,107Provision for loan losses8,62564,50019,500Charge-offs(11,058)(69,366)(16,504)Recoveries1,5035,275726Balance at end of period$136,586137,516140,829Other real estate owned$74,33778,35482,594Accruing loans 90 days or more past due9,2311,4136,578Non-accrual loans131,026133,689178,402Total non-performing assets (1)$214,594213,456267,574Non-performing assets as a percentageof subsidiary assets2.91%2.92%3.78%Allowance for loan and lease losses as a percentage of non-performing loans97%102%76%Allowance for loan and lease losses as a percentage of total loans3.98%3.97%3.86%Net charge-offs as a percentage of total loans0.28%1.85%0.43%Accruing loans 30-89 days past due$42,58149,08652,402(1) As of March 31, 2012, non-performing assets have not been reduced by U.S. government guarantees of $3.2 million.At March 31, 2012, the allowance for loan and lease losses ("allowance") was $137 million, a decrease of $930 thousand from the prior quarter and a decrease of $4.2 million from a year ago.  The allowance was 3.98 percent of total loans outstanding at March 31, 2012, compared to 3.97 percent at December 31, 2011.  The allowance was 97 percent of non-performing loans at March 31, 2012, a decrease from 102 percent at the prior quarter end and an increase from 76 percent from the prior year first quarter.  The non-performing assets of $215 million remained stable compared to the prior quarter and decreased $53.0 million, or 20 percent, from the prior year first quarter.  The Company's early stage delinquencies (accruing loans 30-89 days past due) of $42.6 million at March 31, 2012 decreased from the prior quarter early stage delinquencies of $49.1 million and early stage delinquencies of $52.4 million at March 31, 2011.  The banks continue to actively manage the disposition of non-performing assets.The largest category of non-performing assets was the land, lot and other construction category which was $108 million, or 50 percent, of the non-performing assets at March 31, 2012.  Included in this category was $50.7 million of land development assets and $31.9 million in unimproved land assets at March 31, 2012.  Although land, lot and other construction assets have historically put pressure on the Company's credit quality, the Company has continued to reduce this category.  During the current quarter, land, lot and other construction non-performing assets were reduced by $9.4 million, or 8 percent.  Credit Quality Trends and Provision for Loan LossesAccruingLoans 30-89 Non-PerformingProvisionALLL Days Past Due Assets to(Unaudited - for LoanNetas a Percent as a Percent of Total Subsidiary Dollars in thousands)LossesCharge-Offsof Loans LoansAssets Q1 2012$8,6259,5553.98%1.24%2.91%Q4 20118,6759,2523.97%1.42%2.92%Q3 201117,17518,8773.92%0.60%3.49%Q2 201119,15020,1843.88%1.14%3.68%Q1 201119,50015,7783.86%1.44%3.78%Q4 201027,37524,5253.66%1.21%3.91%Q3 201019,16226,5703.47%1.06%4.03%Q2 201017,24619,1813.58%0.92%4.01%Net charged-off loans during the current quarter of $9.6 million remained stable compared to the prior quarter and decreased $6.2 million, or 39 percent, compared to the prior year first quarter.   The current quarter provision for loan losses was $8.6 million, which was nearly the same as the prior quarter and a decrease of $10.9 million from the first quarter of 2011.  Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of additional provision for loan loss expense.  "As expected, non-performing assets stayed flat this past quarter after a substantial reduction in the prior quarter," Blodnick said.  "This past quarter our banks spent most of their time and effort working to position properties for sale and queuing them up in order to resume the disposition of OREO properties along with non-performing loans."  For additional information regarding credit quality and identification of the loan portfolio by regulatory classification, see the exhibits at the end of this press release.Liability Summary$ Change from$ Change fromMarch 31,December 31,March 31,December 31,March 31,(Unaudited - Dollars in thousands)20122011201120112011Non-interest bearing deposits$ 1,039,0681,010,899888,31128,169150,757Interest bearing deposits3,888,7503,810,3143,663,99978,436224,751Repurchase agreements259,290258,643250,9326478,358FHLB advances995,0381,069,046960,097(74,008)34,941Other borrowed funds10,3589,99514,135363(3,777)Subordinated debentures125,311125,275125,16736144Other liabilities60,03353,507167,3346,526(107,301)Total liabilities$ 6,377,8486,337,6796,069,97540,169307,873At March 31, 2012, non-interest bearing deposits of $1.039 billion increased $28.2 million, or 3 percent, since December 31, 2011 and increased $151 million, or 17 percent, since March  31, 2011.  Interest bearing deposits of $3.889 billion at March 31, 2012 included  $649 million of wholesale deposits of which $117 million were reciprocal deposits (e.g., Certificate of Deposit Account Registry System deposits).  In addition to reciprocal deposits, wholesale deposits include brokered deposits classified as NOW, money market deposit and certificate accounts.  Interest bearing deposits increased $78.4 million, or 2 percent, since December 31, 2011 and included an increase of $41.2 million in wholesale deposits.  Interest bearing deposits increased $225 million, or 6 percent, from March 31, 2011 and included an increase of $75.7 million in wholesale deposits.  The increase in deposits during the current quarter and throughout 2011 has been driven by the banks' success in generating new personal and business customer relationships, as well as existing customers retaining cash deposits for liquidity purposes due to the continued uncertainty in the current economic environment.  These deposit increases have been beneficial to the Company in funding the investment securities portfolio growth at low costs over the prior twelve months.  The Company's level of borrowings has fluctuated as needed to supplement deposit growth and to fund the growth in investment securities.  Since the prior quarter end, Federal Home Loan Bank ("FHLB") advances decreased $74.0 million and have increased $34.9 million since March 31, 2011.  Included in the other liabilities at March 31, 2011 was a $129 million obligation for securities purchased on March 31, 2011 which were settled in April of 2011. Stockholders' Equity Summary$ Change from$ Change from(Unaudited - Dollars in thousands, except March 31,December 31,March 31,December 31,March 31,per share data)20122011201120112011Common equity$ 822,488816,740837,5955,748(15,107)Accumulated other comprehensive income41,50933,4872,2948,02239,215Total stockholders' equity863,997850,227839,88913,77024,108Goodwill and core deposit intangible, net(113,832)(114,384)(156,289)55242,457Tangible stockholders' equity$ 750,165735,843683,60014,32266,565Stockholders' equity to total assets11.93%11.83%12.15%Tangible stockholders' equity to total tangible assets10.52%10.40%10.12%Book value per common share$ 12.0111.8211.680.190.33Tangible book value per common share$ 10.4310.239.510.200.92Market price per share at end of period$ 14.9412.0315.052.91(0.11)Tangible stockholders' equity and book value per share increased $14.3 million and $0.20 per share from the prior year end, resulting in tangible stockholders' equity to tangible assets of 10.52 percent and tangible book value per share of $10.43 as of March 31, 2012.    The increases came from earnings retention and an increase in accumulated other comprehensive income.  Tangible stockholders' equity increased $66.6 million, or $0.92 per share since March 31, 2011, primarily a result of an increase in accumulated other comprehensive income.  The $15.1 million decrease in common equity from March 31, 2011 included a third quarter 2011 goodwill impairment charge (net of tax) of $32.6 million.Cash DividendOn March 28, 2012, the Company's Board of Directors declared a cash dividend of $0.13 per share, payable April 19, 2012 to shareholders of record on April 10, 2012.  Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.Operating Results for Three Months Ended March 31, 2012 Compared to December 31, 2011 and March 31, 2011Revenue SummaryThree Months endedMarch 31,December 31,March 31,(Unaudited - Dollars in thousands)201220112011Net interest incomeInterest income$ 67,88468,74168,373Interest expense9,59810,19711,669Total net interest income58,28658,54456,704Non-interest incomeService charges, loan fees, and other fees11,43812,13411,185Gain on sale of loans6,8137,0264,694Gain on sale of investments--124Other income2,0872,8571,392Total non-interest income20,33822,01717,395$ 78,62480,56174,099Net interest margin (tax-equivalent)3.73%3.74%3.91%$ Change from$ Change from% Change from% Change fromDecember 31,March 31,December 31,March 31,(Unaudited - Dollars in thousands)2011201120112011Net interest incomeInterest income$ (857)$ (489)-1%-1%Interest expense(599)(2,071)-6%-18%Total net interest income(258)1,5820%3%Non-interest incomeService charges, loan fees, and other fees(696)253-6%2%Gain on sale of loans(213)2,119-3%45%Gain on sale of investments-(124)n/m-100%Other income(770)695-27%50%Total non-interest income(1,679)2,943-8%17%$ (1,937)$ 4,525-2%6%Net Interest IncomeThe current quarter net interest income of $58.3 million decreased $258 thousand, or .4 percent, over the prior quarter and increased $1.6 million, or 3 percent, over the prior year first quarter.   In spite of the significant collateralized mortgage obligation ("CMO") premium amortization (net of discount accretion) in the current quarter, interest income has remained relatively stable with only small decreases compared to the prior quarter and the prior year first quarter.  The current quarter CMO premium amortization was $12.8 million, an increase of $1.3 million over the prior quarter and an increase of $3.2 million over the prior year first quarter.  The decrease in interest expense of $599 thousand, or 6 percent, from the prior quarter and the decrease of $2.1 million, or 18 percent, in interest expense from the prior year first quarter was primarily driven by the decrease in interest rates on deposits as a result of the bank subsidiaries' continued focus on reducing funding costs.  The funding cost for the current quarter was 72 basis points compared to 77 basis points for the prior quarter and 96 basis points for the prior year first quarter.  The current quarter net interest margin as a percentage of earning assets, on a tax-equivalent basis, was 3.73 percent, a decrease of 1 basis point from the prior quarter net interest margin of 3.74 percent and a decrease of 18 basis points from the prior year first quarter net interest margin of 3.91 percent.  Such decreases were a result of the reduction in yields on earning assets, the majority of which was from lower yielding investment securities and the increase in CMO premium amortization during the current quarter.  The CMO premium amortization in the current quarter accounted for a 76 basis point reduction in the net interest margin compared to a 69 basis point reduction in the prior quarter and 63 basis point reduction in the net interest margin in the prior year first quarter.  As a result of fewer loans moving to non-accrual status and the greater dispositions of existing non-accrual loans, the reversal of interest income on non-accrual loans accounted for only a 1 basis point reduction in the net interest margin during the current quarter.  "Once again, the banks continue to do a great job of lowering their funding cost, but it was not enough to offset the contraction in asset yields and the CMO premium amortization," said Ron J. Copher, Chief Financial Officer.  Non-interest IncomeNon-interest income for the current quarter totaled $20.3 million, a decrease of $1.7 million over the prior quarter and an increase of $2.9 million over the same quarter last year.  Gain on sale of loans decreased $213 thousand, or 3 percent, over the prior quarter as there was a slight reduction in origination volume.  However, gain on sale of loans increased $2.1 million, or 45 percent, over the same quarter last year, the result of an increase in refinance activity during the first quarter of 2012 compared to the first quarter of 2011.  Service charge fee income decreased $696 thousand from the linked quarter, the majority of which was from lower overdraft fees driven by the increased regulatory restrictions.  Service charge fee income increased $253 thousand from the prior year first quarter primarily due to the gain in debit card income as a result of the larger number of deposit accounts and greater volume of transactions.  Other income of $2.1 million for the current quarter was a decrease of $770 thousand from the prior quarter and an increase of $695 thousand from the prior year first quarter.  Included in other income was operating revenue of $51.2 thousand from other real estate owned and gains of $477 thousand on the sale of other real estate owned, which total $528 thousand for the current quarter compared to $822 thousand for the prior quarter and $268 thousand for the prior year first quarter. Non-interest Expense SummaryThree Months endedMarch 31, December 31,March 31,(Unaudited - Dollars in thousands)201220112011Compensation and employee benefits$ 23,56021,31121,603Occupancy and equipment5,9685,8905,954Advertising and promotions1,4021,5881,484Outsourced data processing846849773Other real estate owned6,82212,8962,099Federal Deposit Insurance Corporation premiums1,7122,0102,324Core deposit intangibles amortization552557727Other expense8,18310,0297,512Total non-interest expense$ 49,04555,13042,476$ Change from$ Change from% Change from % Change from December 31,March 31,December 31,March 31,(Unaudited - Dollars in thousands)2011201120112011Compensation and employee benefits$ 2,249$ 1,95711%9%Occupancy and equipment78141%0%Advertising and promotions(186)(82)-12%-6%Outsourced data processing(3)730%9%Other real estate owned(6,074)4,723-47%225%Federal Deposit Insurance Corporation premiums(298)(612)-15%-26%Core deposit intangibles amortization(5)(175)-1%-24%Other expense(1,846)671-18%9%Total non-interest expense$ (6,085)$ 6,569-11%15%Non-interest expense of $49.0 million for the current quarter decreased by $6.1 million, or 11 percent, from the prior quarter and increased by $6.6 million, or 15 percent, from the prior year first quarter.  The changes over the prior quarter and the prior year first quarter were driven primarily by other real estate owned expense.  Other real estate owned expense decreased $6.1 million, or 47 percent, from the prior quarter and increased $4.7 million, or 225 percent, from the prior year first quarter.  The current quarter other real estate owned expense of $6.8 million included $864 thousand of operating expense, $5.4 million of fair value write-downs, and $549 thousand of loss on sale of other real estate owned.  Other real estate owned expense will fluctuate as the Company continues to work through non-performing loans and  dispose of foreclosure properties.Excluding other real estate owned expense, non-interest expense decreased $11 thousand, or 3 basis points, from the prior quarter and increased $1.8 million, or 5 percent, from the prior year first quarter.  Compensation and employee benefits increased by $2.2 million, or 11 percent, from the prior quarter and increased $2.0 million, or 9 percent, from the prior year first quarter.  Such increases were attributable to a revised Company incentive program and the restoration in 2012 of certain compensation cuts made in 2011.  Other expense decreased $1.8 million, or 18 percent, from the prior quarter as a result of decreases in several categories including loan expenses, outside service expense, and expenses associated with New Markets Tax Credit Investments.  The banks continue to work diligently in reducing expenses in areas where they have direct control.Efficiency RatioThe efficiency ratio for the current quarter was 51 percent compared to 53 percent for the prior year first quarter.  The lower efficiency ratio was the result of an increase in net interest income and non-interest income which more than offset the increase in non-interest expense.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 banks domiciled in Montana - Glacier Bank of Kalispell, First Security Bank of Missoula, Valley Bank of Helena, Big Sky Western Bank of Bozeman, Western Security Bank of Billings, and First Bank of Montana of Lewistown; two banks domiciled in Idaho - Mountain West Bank of Coeur d'Alene and Citizens Community Bank of Pocatello; two banks domiciled in Wyoming - 1st Bank of Evanston and First Bank of Wyoming; and one bank domiciled in Colorado - Bank of the San Juans of Durango.On January 18, 2012, the Company announced it's plans to combine its eleven bank subsidiaries into a single commercial bank.  The bank subsidiaries will operate as separate divisions of Glacier Bank under the same names and management teams as before the consolidation.  As part of the consolidation, the Company has filed with the appropriate federal and state bank regulators the application to merge the bank subsidiaries.  The resulting bank Board of Directors and executive officers will be the Board of Directors and senior management team of Glacier Bancorp, Inc.  The consolidation is expected to be completed in early second quarter 2012, following regulatory approvals.  Forward Looking StatementsThis 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 of the credit quality of loans in the Company's portfolio, including as a result of declines in the housing and real estate markets in its geographic areas; increased loan delinquency rates; the risks presented by a continued economic downturn, which could adversely affect credit quality, loan collateral values, other real estate owned values, investment values, liquidity and capital levels, dividends and loan originations; changes in market interest rates, which could adversely affect the Company's net interest income and profitability; legislative or regulatory changes that adversely affect the Company's business, ability to complete pending or prospective future acquisitions, limit certain sources of revenue, or increase cost of operations; costs or difficulties related to the integration of acquisitions; the goodwill we have recorded in connection with acquisitions could become impaired, which may have an adverse impact on our earnings and capital; reduced demand for banking products and services; the risks presented by public stock market volatility, which could adversely affect the market price of our common stock and our ability to raise additional capital in the future; competition from other financial services companies in our markets;  loss of services from the senior management team; 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 it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.Visit our website at www.glacierbancorp.com Glacier Bancorp, Inc.Unaudited Condensed Consolidated Statements of Financial ConditionMarch 31,December 31,March 31,(Dollars in thousands, except per share data)201220112011AssetsCash on hand and in banks$95,687104,67475,471Interest bearing cash deposits36,07023,35822,633Cash and cash equivalents131,757128,03298,104Investment securities, available-for-sale3,239,0193,126,7432,705,709Loans held for sale77,52895,45723,904Loans receivable3,433,2113,466,1353,646,986Allowance for loan and lease losses(136,586)(137,516)(140,829)Loans receivable, net3,296,6253,328,6193,506,157Premises and equipment, net158,646158,872152,922Other real estate owned74,33778,35482,594Accrued interest receivable35,48734,96133,707Deferred tax asset24,51131,08137,962Core deposit intangible, net7,7328,28410,030Goodwill106,100106,100146,259Non-marketable equity securities49,69949,69465,040Other assets40,40441,70947,476Total assets$7,241,8457,187,9066,909,864LiabilitiesNon-interest bearing deposits$1,039,0681,010,899888,311Interest bearing deposits3,888,7503,810,3143,663,999Securities sold under agreements to repurchase259,290258,643250,932Federal Home Loan Bank advances995,0381,069,046960,097Other borrowed funds10,3589,99514,135Subordinated debentures125,311125,275125,167Accrued interest payable5,3185,8256,790Other liabilities54,71547,682160,544Total liabilities6,377,8486,337,6796,069,975Stockholders' EquityPreferred shares, $0.01 par value per share, 1,000,000shares authorized, none issued or outstanding---Common stock, $0.01 par value per share, 117,187,500shares authorized719719719Paid-in capital641,647642,882642,876Retained earnings - substantially restricted180,122173,139194,000Accumulated other comprehensive income41,50933,4872,294Total stockholders' equity863,997850,227839,889Total liabilities and stockholders' equity$7,241,8457,187,9066,909,864Number of common stock shares issued and outstanding71,915,07371,915,07371,915,073 Glacier Bancorp, Inc.Unaudited Condensed Consolidated Statements of OperationsThree Months ended March 31,(Dollars in thousands, except per share data)20122011Interest IncomeResidential real estate loans$7,7848,716Commercial loans31,04133,058Consumer and other loans9,17010,450Investment securities19,88916,149     Total interest income67,88468,373Interest ExpenseDeposits4,9547,088Securities sold under agreements to repurchase299357Federal Home Loan Bank advances3,3812,548Federal funds purchased and other borrowed funds6233Subordinated debentures9021,643     Total interest expense9,59811,669Net Interest Income58,28656,704Provision for loan losses8,62519,500     Net interest income after provision for loan losses49,66137,204Non-Interest IncomeService charges and other fees10,49210,208Miscellaneous loan fees and charges946977Gain on sale of loans6,8134,694Gain on sale of investments-124Other income2,0871,392     Total non-interest income20,33817,395Non-Interest ExpenseCompensation and employee benefits23,56021,603Occupancy and equipment5,9685,954Advertising and promotions1,4021,484Outsourced data processing846773Other real estate owned6,8222,099Federal Deposit Insurance Corporation premiums1,7122,324Core deposit intangibles amortization552727Other expense8,1837,512     Total non-interest expense49,04542,476Income Before Income Taxes20,95412,123Federal and state income tax expense4,6211,838Net Income$16,33310,285Basic earnings per share$0.230.14Diluted earnings per share$0.230.14Dividends declared per share$0.130.13Average outstanding shares - basic71,915,07371,915,073Average outstanding shares - diluted71,915,13071,915,073  Glacier Bancorp, Inc.  Average Balance Sheet Three Months ended 3/31/12Three Months ended 3/31/11AverageAverageAverageInterest &Yield/AverageInterest &Yield/(Unaudited - Dollars in thousands)BalanceDividendsRateBalanceDividendsRateAssetsResidential real estate loans$       584,7587,7845.32%$       601,6408,7165.79%Commercial loans2,290,23631,0415.44%2,411,84633,0585.56%Consumer and other loans639,3029,1705.75%702,24810,4506.03%Total loans (1)       3,514,29647,9955.48%3,715,73452,2245.70%Tax-exempt investment securities (2)867,6219,6734.46%583,9046,7784.64%Taxable investment securities (3)2,382,11910,2161.72%1,936,3169,3711.94%Total earning assets6,764,03667,8844.03%6,235,95468,3734.45%Goodwill and intangibles114,138156,703Non-earning assets358,294284,631Total assets$    7,236,468$    6,677,288LiabilitiesNOW accounts$       830,8213690.18%$       748,0585250.28%Savings accounts427,129910.09%374,0311480.16%Money market deposit accounts874,2396000.28%878,3911,1060.51%Certificate accounts1,071,9993,2851.23%1,082,0834,4831.68%Wholesale deposits (4)643,5076090.38%537,0088260.62%FHLB advances1,011,7113,3811.34%946,9972,5481.09%Repurchase agreements  and other borrowed funds456,3401,2631.11%387,0602,0332.13%Total interest bearing liabilities5,315,7469,5980.72%4,953,62811,6690.96%Non-interest bearing deposits1,003,604851,900Other liabilities50,85029,436Total liabilities6,370,2005,834,964Stockholders' EquityCommon stock719719Paid-in capital642,869643,937Retained earnings181,972194,596Accumulated other  comprehensive income40,7083,072Total stockholders' equity866,268842,324Total liabilities and  stockholders' equity$    7,236,468$    6,677,288Net interest income$   58,286$   56,704Net interest spread3.31%3.49%Net interest margin      3.46%3.69%Net interest margin (tax-equivalent)3.73%3.91%(1)  Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale.  Non-accrual loans were included in the average volume for the entire period.(2)  Excludes tax effect of $4,282,000 and $3,001,000 on tax-exempt investment security income for the three months ended March 31, 2012 and 2011, respectively.(3)  Excludes tax effect of $386,000 and $392,000 on investment security tax credits   for the three months ended March 31, 2012 and 2011, respectively.(4)  Wholesale deposits include brokered deposits classified as NOW, money market deposit and certificate accounts,  including reciprocal deposits. Glacier Bancorp, Inc.Loan Portfolio by Regulatory ClassificationLoans Receivable, by Loan Type% Change% ChangeBalanceBalanceBalancefrom from (Unaudited - Dollars in thousands)3/31/1212/31/113/31/1112/31/113/31/11Custom and owner  occupied construction$38,54035,42237,8419%2%Pre-sold and spec construction50,69958,81155,817-14%-9%     Total residential construction89,23994,23393,658-5%-5%Land development98,315103,881172,134-5%-43%Consumer land or lots118,689125,396144,885-5%-18%Unimproved land61,46266,07479,234-7%-22%Developed lots for operative builders23,91025,18029,543-5%-19%Commercial lots26,22826,62129,334-1%-11%Other construction32,50334,34644,588-5%-27%     Total land, lot, and other construction361,107381,498499,718-5%-28%Owner occupied709,979697,131685,4842%4%Non-owner occupied445,118436,021434,1792%3%     Total commercial real estate1,155,0971,133,1521,119,6632%3%Commercial and industrial399,889408,054416,343-2%-4%1st lien667,341688,455659,480-3%1%Junior lien92,57895,50899,898-3%-7%     Total 1-4 family759,919783,963759,378-3%0%Home equity lines of credit342,693350,229374,949-2%-9%Other consumer107,933109,235112,499-1%-4%     Total consumer450,626459,464487,448-2%-8%Agriculture146,943151,031149,689-3%-2%Other147,919150,197144,993-2%2%Loans held for sale(77,528)(95,457)(23,904)-19%224%     Total$3,433,2113,466,1353,646,986-1%-6% Glacier Bancorp, Inc.Credit Quality Summary Non-  Accruing OtherNon-performing Assets, by Loan Type Accruing  Loans 90 Days  Real Estate (Unaudited - BalanceBalanceBalance Loans  or More Past Due  Owned Dollars in thousands)3/31/1212/31/113/31/113/31/123/31/123/31/12Custom and owner  occupied construction$2,6881,5312,3621,825-863Pre-sold and spec construction9,0855,50612,4105,6273583,100     Total residential construction11,7737,03714,7727,4523583,963Land development50,74656,15282,46526,5442,38521,817Consumer land or lots8,2718,87812,7632,5673045,400Unimproved land31,89135,77142,75518,80725512,829Developed lots for operative  builders8,9189,0017,0796,4386521,828Commercial lots2,6432,0322,6305484491,646Other construction5,1285,1334,302217-4,911     Total land, lot and       other construction107,597116,967151,99455,1214,04548,431Owner occupied20,81823,93123,10411,4791,2878,052Non-owner occupied3,6454,89712,6942,211-1,434     Total commercial real estate24,46328,82835,79813,6901,2879,486Commercial and industrial12,81812,85517,57711,9153715321st lien29,19931,08330,33620,6431568,400Junior lien10,7492,5062,56810,749--     Total 1-4 family39,94833,58932,90431,3921568,400Home equity lines of credit6,6076,3615,6976,195154258Other consumer3073606412071288     Total consumer6,9146,7216,3386,402166346Agriculture10,7387,0107,1124,9642,8482,926Other3434491,07990-253     Total$214,594213,456267,574131,0269,23174,337Accruing 30-89 Days Delinquent Loans, by Loan Type(Unaudited - BalanceBalanceBalanceDollars in thousands)3/31/1212/31/113/31/11Custom and owner  occupied construction$415--Pre-sold and spec construction3032502,968     Total residential construction7182502,968Land development8704582,874Consumer land or lots3,8441,8016,294Unimproved land1171,3423,473Developed lots for operative  builders2531,336324Commercial lots--403Other construction122-525     Total land, lot and       other construction5,2064,93713,893Owner occupied12,0038,1876,027Non-owner occupied2,1161,791711     Total commercial real estate14,1199,9786,738Commercial and industrial4,4904,6373,7121st lien10,86114,40519,590Junior lien1,8156,471477     Total 1-4 family12,67620,87620,067Home equity lines of credit2,6093,4162,862Other consumer9151,1721,308     Total consumer3,5244,5884,170Agriculture1,1743,428776Other67439278     Total$42,58149,08652,402 Glacier Bancorp, Inc.Credit Quality Summary (continued)Net Charge-Offs (Recoveries), Year-to-Date Period Ending, By Loan Type(Unaudited - BalanceBalanceBalance Charge-Offs  Recoveries Dollars in thousands)3/31/1212/31/113/31/113/31/123/31/12Custom and owner  occupied construction$-20697--Pre-sold and spec construction1,9194,0692,7352,01394     Total residential construction1,9194,2752,8322,01394Land development1,23617,0553,5111,467231Consumer land or lots1,1957,4561,7511,304109Unimproved land1304,0471,776321191Developed lots for operative  builders3949431293973Commercial lots(120)237267-120Other construction-1,568---     Total land, lot and       other construction2,83531,3067,4343,489654Owner occupied1,3723,8158901,40432Non-owner occupied5463,861-5493     Total commercial real estate1,9187,6768901,95335Commercial and industrial3347,8711,3446913571st lien8937,0312,30995158Junior lien1,1761,6636151,335159     Total 1-4 family2,0698,6942,9242,286217Home equity lines of credit3463,26128537125Other consumer3661531151115     Total consumer3823,876316522140Agriculture-134(1)--Other98259391046     Total$9,55564,09115,77811,0581,503 SOURCE Glacier Bancorp, Inc.For further information: Michael J. Blodnick, +1-406-751-4701, or Ron J. Copher, +1-406-751-7706, both for Glacier Bancorp, Inc.