Unassociated Document

KALISPELL, MONTANA - Glacier Bancorp, Inc. (Nasdaq GS: GBCI) reported a net loss of $1.531 million for the third quarter, a decrease of $14.316 million, or 112 percent, from the $12.785 million net income reported for the third quarter of 2008. The diluted loss per share of $.03 for the quarter represented a 113 percent decrease from the diluted earnings per share of $.24 for the same quarter of 2008. Annualized return on average assets and return on average equity for the third quarter were (.11) percent and (.88) percent, which compares with prior year returns for the third quarter of 1.01 percent and 9.15 percent, respectively.

Net earnings for the nine months ended September 30, 2009 were $24.900 million, which is a decrease of $23.743 million, or 49 percent, over the prior year. Diluted earnings per share of $.40, is a decrease of 56 percent from the $.90 earned in 2008. “We continued in the third quarter to aggressively deal with our credit challenges,” said Mick Blodnick, President and Chief Executive Officer. “Although our operating income posted another all time record high, it was not enough to offset the $47 million we provisioned for loan losses in the quarter. This allowed us to cover our net charge-offs by 2.5 times and took our allowance for loan and lease loss to 3.10 percent,” Blodnick said. “We will continue to monitor our credit quality closely, proactively identify our problems and take appropriate steps to assure our loan loss reserve is adequate to cover the exposure in our loan portfolio.”

	September 30,			December 31,			September 30,			$ change from			$ change from
	2009			2008			2008			December 31,			September 30,
Assets ($ in thousands)	(unaudited)			(audited)			(unaudited)			2008			2008

Cash on hand and in banks	$	93,728		$	125,123		$	94,865		$	(31,395	)		(1,137	)
Investments, interest bearing deposits,
FHLB stock, FRB stock, and Fed Funds		1,245,898			1,000,224			867,366			245,674			378,532
Loans:
Real estate		787,911			838,375			769,860			(50,464	)		18,051
Commercial		2,558,270			2,575,828			2,452,102			(17,558	)		106,168
Consumer and other		700,069			715,990			700,658			(15,921	)		(589	)
Total loans		4,046,250			4,130,193			3,922,620			(83,943	)		123,630
Allowance for loan and lease losses		(125,330	)		(76,739	)		(65,633	)		(48,591	)		(59,697	)
Total loans net of allowance for loan and lease losses		3,920,920			4,053,454			3,856,987			(132,534	)		63,933
Other assets		437,633			375,169			353,891			62,464			83,742
Total Assets	$	5,698,179		$	5,553,970			5,173,109		$	144,209			525,070

At September 30, 2009, total loans were $4.046 billion, a decrease of $84 million, over total loans of $4.130 billion at December 31, 2008, primarily the result of decreased loan demand. Real estate loans decreased $50 million, or 6 percent, from the fourth quarter of 2008. Consumer loans, which are primarily comprised of home equity loans, decreased by $16 million, or 2 percent, while commercial loans decreased $18 million, or less than 1 percent, during the first nine months of 2009. Total loans increased $124 million, or 3 percent from September 30, 2008. Since September 30, 2008, commercial loans increased $106 million, or 4 percent, real estate loans grew by $18 million, or 2 percent, and consumer loans decreased $589 thousand, or less than 1 percent.

Investment securities, including interest bearing deposits in other financial institutions and federal funds sold, have increased $246 million, or 25 percent, from December 31, 2008 and increased $379 million, or 44 percent, from September 30, 2008. Investment securities represented 22 percent of total assets at September 30, 2009 versus 17 percent of total assets at September 30, 2008. The Company continues to purchase investment securities when high quality loan originations slow.

	September 30,		December 31,		September 30,		$ change from			$ change from
	2009		2008		2008		December 31,			September 30,
Liabilities ($ in thousands)	(unaudited)		(audited)		(unaudited)		2008			2008

Non-interest bearing deposits	$	801,261	$	747,439	$	754,623	$	53,822		$	46,638
Interest bearing deposits		2,809,756		2,515,036		2,282,147		294,720			527,609
Advances from Federal Home Loan Bank		640,735		338,456		727,243		302,279			(86,508	)
Federal Reserve Bank Discount Window		370,000		914,000		140,500		(544,000	)		229,500
U.S. Treasury Tax & Loan		3,009		6,067		357,095		(3,058	)		(354,086	)
Securities sold under agreements to repurchase and other borrowed funds		222,574		190,664		191,938		31,910			30,636
Other liabilities		42,696		44,331		42,013		(1,635	)		683
Subordinated debentures		120,167		121,037		118,559		(870	)		1,608
Total liabilities	$	5,010,198	$	4,877,030		4,614,118	$	133,168		$	396,080

As of September 30, 2009, non-interest bearing deposits increased $54 million, or 7 percent, since December 31, 2008 and increased $47 million, or 6 percent, since September 30, 2008. Interest bearing deposits of $2.810 billion at September 30, 2009 includes brokered deposits of $233 million, of which $173 million are issued through the Certificate of Deposit Account Registry System. Interest bearing deposits increased $295 million, or 12 percent from December 31, 2008, of which $203 million is from brokered deposits. Since September 30, 2008, interest bearing deposits increased $528 million, or 23 percent, resulting from the banks’ continued focus on attracting and retaining low cost core deposits. Federal Home Loan Bank (“FHLB”) advances increased $302 million, or 89 percent, from December 31, 2008 and decreased $87 million, or 12 percent, from September 30, 2008. Federal Reserve Bank Discount Window borrowings decreased $544 million, or 60 percent, from December 31, 2008 and increased $230 million, or 163 percent, from September 30, 2008. U.S. Treasury Tax and Loan funds decreased $3 million and $354 million from December 31, 2008 and September 30, 2008, respectively, resulting from the decrease in availability of the treasury investment option term funds. Repurchase agreements and other borrowed funds were $223 million at September 30, 2009, an increase of $32 million from December 31, 2008 and an increase of $31 million, or 16 percent, from September 30, 2008.

	September 30,			December 31,			September 30,			$ change from			$ change from
Stockholders' equity	2009			2008			2008			December 31,			September 30,
($ in thousands except per share data)	(unaudited)			(audited)			(unaudited)			2008			2008

Common equity	$	682,956		$	678,183		$	564,612		$	4,773		$	118,344
Accumulated other comprehensive gain (loss)		5,025			(1,243	)		(5,621	)		6,268			10,646
Total stockholders' equity		687,981			676,940			558,991			11,041			128,990
Core deposit intangible, net, and goodwill		(156,978	)		(159,765	)		(151,954	)		2,787			(5,024	)
Tangible stockholders' equity	$	531,003		$	517,175		$	407,037		$	13,828		$	123,966

Stockholders' equity to total assets		12.07	%		12.19	%		10.81	%
Tangible stockholders' equity to total tangible assets		9.58	%		9.59	%		8.11	%
Book value per common share	$	11.18		$	11.04		$	10.29		$	0.14		$	0.89
Tangible book value per common share	$	8.63		$	8.43		$	7.49		$	0.20		$	1.14
Market price per share at end of period	$	14.94		$	19.02		$	24.77		$	(4.08	)	$	(9.83	)

Total stockholders’ equity and book value per share amounts have increased $129 million and $.89 per share, respectively, from September 30, 2008, the result of earnings retention and exercised stock options, increase in accumulated comprehensive gains, stock issued in connection with the Bank of the San Juans acquisition, and $94 million in net proceeds from the Company’s November 2008 equity offering of 6,325,000 shares of common stock at a price of $15.50 per share. Tangible stockholders’ equity has increased $124 million, or 30 percent since September 30, 2008, with tangible stockholders’ equity at 9.58 percent of total tangible assets at September 30, 2009, up from 8.11 percent at September 30, 2008. Accumulated other comprehensive income (loss), representing net unrealized gains or losses (net of tax) on investment securities designated as available for sale, increased $11 million from September 30, 2008. “Our strong capital position continues to provide us with the resources and flexibility to manage through this difficult economic environment,” Blodnick said. “With tangible common equity of 10 percent, our capital levels remain at historical highs.”

Revenue summary
($ in thousands)	Three months ended
	September 30,			June 30,			September 30,
	2009			2009			2008
	(unaudited)			(unaudited)			(unaudited)
Net interest income
Interest income	$	74,430		$	74,420		$	75,689
Interest expense		13,801			13,939			22,113
Net interest income		60,629			60,481			53,576

Non-interest income
Service charges, loan fees, and other fees		12,103			11,377			12,800
Gain on sale of loans		5,613			9,071			3,529
Gain (loss) on investments		2,667			-			(7,593	)
Other income		1,317			870			3,018
Total non-interest income		21,700			21,318			11,754
	$	82,329		$	81,799		$	65,330

Tax equivalent net interest margin		4.80	%		4.87	%		4.65	%

($ in thousands)	$ change from			$ change from			% change from			% change from
	June 30,			September 30,			June 30,			September 30,
	2009			2008			2009			2008
Net interest income
Interest income	$	10		$	(1,259	)		0	%		-2	%
Interest expense		(138	)		(8,312	)		-1	%		-38	%
Net interest income		148			7,053			0	%		13	%

Non-interest income
Service charges, loan fees, and other fees		726			(697	)		6	%		-5	%
Gain on sale of loans		(3,458	)		2,084			-38	%		59	%
Gain (loss) on investments		2,667			10,260			n/m			135	%
Other income		447			(1,701	)		51	%		-56	%
Total non-interest income		382			9,946			2	%		85	%
	$	530		$	16,999			1	%		26	%

n/m - not measurable

Net interest income for the quarter increased $7 million, or 13 percent, with interest expense decreasing $8 million, or 38 percent, over the same period in 2008. Net interest income for the current quarter increased $148 thousand with interest expense decreasing $138 thousand, or 1 percent, compared to the prior quarter. The decrease in total interest expense is primarily attributable to rate decreases in interest bearing deposits and lower cost borrowings. The net interest margin as a percentage of earning assets, on a tax equivalent basis, was 4.80 percent which is 7 basis points lower than the 4.87 percent achieved for the prior quarter; however 15 basis points higher than the 4.65 percent result for the third quarter of 2008. “We had minimal net interest margin compression in the third quarter with most of the reduction resulting from the growth in our investment portfolio which lead to a lower yield on our earning assets,” said Ron Copher, Chief Financial Officer.

Non-interest Income

Non-interest income for the quarter increased $382 thousand, or 2 percent, from the prior quarter, and increased $10 million, or 85 percent, over the same period in 2008. Fee income increased $726 thousand, or 6 percent, during the quarter, compared to the decrease of $697 thousand, or 5 percent, over the same period last year. Gain on sale of loans decreased $3.5 million, or 38 percent, for the quarter a result of the slowdown in refinance activity from a very active second quarter. Gain on sale of loans from the prior year increased $2 million, or 59 percent, primarily the result of increased refinancing of residential loans originated and sold in the secondary market. Investments sold during the quarter resulted in a $2.7 million gain compared to the prior year loss of $7.6 million from an other than temporary impairment on investments in Federal Home Loan Mortgage Corporation (“Freddie Mac”) preferred stock and Federal National Mortgage Association (“Fannie Mae”) common stock. Other income decreased $1.7 million from prior year, the result of a $1.7 million gain from the sale and relocation of Mountain West Bank’s office facility in Ketchum, Idaho during the third quarter of 2008.

Non-interest expense summary	Three months ended
($ in thousands)	September 30,		June 30,		September 30,
	2009		2009		2008
	(unaudited)		(unaudited)		(unaudited)

Compensation and employee benefits	$	20,935	$	20,710	$	21,188
Occupancy and equipment expense		5,835		5,611		5,502
Advertising and promotion expense		1,596		1,722		1,942
Outsourced data processing		830		680		556
Core deposit intangibles amortization		758		762		764
Other expenses		11,942		13,478		7,809
Total non-interest expense	$	41,896	$	42,963	$	37,761

($ in thousands)	$ change from			$ change from			% change from			% change from
	June 30,			September 30,			June 30,			September 30,
	2009			2008			2009			2008

Compensation and employee benefits	$	225		$	(253	)		1	%		-1	%
Occupancy and equipment expense		224			333			4	%		6	%
Advertising and promotion expense		(126	)		(346	)		-7	%		-18	%
Outsourced data processing		150			274			22	%		49	%
Core deposit intangibles amortization		(4	)		(6	)		-1	%		-1	%
Other expenses		(1,536	)		4,133			-11	%		53	%
Total non-interest expense	$	(1,067	)	$	4,135			-2	%		11	%

Non-interest expense decreased by $1 million, or 2 percent from the prior quarter and increased $4 million, or 11 percent, from prior year’s third quarter. Compensation and employee benefits increased $225 thousand, or 1 percent, from prior quarter and decreased $253 thousand, or 1 percent, from prior year’s third quarter. The current quarter increase in compensation and employee benefits is a result of prior quarter’s significant reductions in bonuses and employee benefits tied to Company performance. The number of full-time equivalent employees decreased from 1,597 to 1,577 during the quarter, and increased from 1,539 since the end of the 2008 third quarter. Occupancy and equipment expense has increased $224 thousand, or 4 percent, and $333 thousand, or 6 percent, from prior quarter and prior year’s third quarter, respectively, reflecting the cost of additional branch locations and facility upgrades. Advertising and promotion expense decreased $126 thousand, or 7 percent, from prior quarter and decreased $346 thousand, or 18 percent, from the same quarter of 2008. The decrease of $1.5 million, or 11 percent, in other expense from prior quarter is a result of a decrease in $2.1 million in FDIC insurance and an increase of $565 thousand in expenses associated with repossessed assets. The increase of $4.1 million, or 53 percent, in other expense from prior year’s third quarter is a result of an increase of $1.3 million in FDIC insurance, $1.8 million of loss from sales of other real estate owned, and $830 thousand in expenses associated with repossessed assets.

	September 30,			June 30,			December 31,			September 30,
Credit quality information	2009			2009			2008			2008
($ in thousands)	(unaudited)			(unaudited)			(audited)			(unaudited)

Allowance for loan and lease losses - beginning of year	$	76,739			76,739			54,413			54,413
Provision		87,905			40,855			28,480			16,257
Acquisition		-			-			2,625			-
Charge-offs		(40,991	)		(21,246	)		(9,839	)		(5,765	)
Recoveries		1,677			1,026			1,060			728
Allowance for loan and lease losses - end of period	$	125,330			97,374			76,739			65,633

Real estate and other assets owned	$	54,537			47,424			11,539			9,506
Accruing loans 90 days or more overdue		2,891			10,086			8,613			4,924
Non-accrual loans		185,577			116,362			64,301			56,322
Total non-performing assets	$	243,005			173,872			84,453			70,752

Allowance for loan and lease losses as a percentage of non-performing assets		52	%		56	%		91	%		93	%

Non-performing assets as a percentage of total bank assets		4.10	%		3.06	%		1.46	%		1.30	%

Allowance for loan and lease losses as a percentage of total loans		3.10	%		2.36	%		1.86	%		1.67	%

Net charge-offs as a percentage of total loans		(0.972	)%		(0.490	)%		(0.213	)%		(0.128	)%

Accruing loans 30-89 days or more overdue	$	43,606			62,637			54,787			25,690

Allowance for Loan and Lease Losses and Non-performing Assets

At September 30, 2009, the allowance for loan and lease losses was $125.33 million, an increase of $60 million, or 91 percent, from a year ago. The current quarter provision for loan loss expense was $47 million, an increase of $38 million from the same quarter in 2008. Net charged-off loans for the quarter were $19 million. Loan portfolio growth, composition, average loan size, credit quality considerations, and other environmental factors will continue to determine the level of additional provision expense.

The allowance was 3.10 percent of total loans outstanding at September 30, 2009, up from 2.36 percent at the prior quarter end, and up from 1.67 percent at September 30, 2008. The allowance was 52 percent of non-performing assets at September 30, 2009, down from 56 percent for the prior quarter end and down from 93 percent a year ago. Non-performing assets as a percentage of total bank assets at September 30, 2009 were at 4.10 percent, up from 3.06 percent as of prior quarter end, and up from 1.30 percent at September 30, 2008. “In the third quarter we again saw a noticeable increase in our non-performing assets as we moved nearly $70 million of loans to non-accrual status,” Blodnick said. “Most of our credit issues continue to be centered around residential construction and land development loans. With this year’s selling season over for the most part, we chose to take many of the projects that lacked sales and place them on non-accrual even if they were not delinquent. Our net charge-offs were higher than the $10 to $12 million per quarter we had expected,” Blodnick said. “The difference was a $7.5 million write down on a North Idaho development that we recently had re-evaluated.”

Operating Results for Nine Months Ended September 30, 2009 Compared to

September 30, 2008

Revenue summary
($ in thousands)	Nine months ended
	September 30,			September 30,			$ change from			% change from
	2009			2008			September 30,			September 30,
	(unaudited)			(unaudited)			2008			2008
Net interest income
Interest income	$	224,382		$	226,278		$	(1,896	)		-1	%
Interest expense		42,894			71,773			(28,879	)		-40	%
Net interest income		181,488			154,505			26,983			17	%

Non-interest income
Service charges, loan fees, and other fees		33,659			35,984			(2,325	)		-6	%
Gain on sale of loans		20,834			11,654			9,180			79	%
Gain (loss) on investments		2,667			(7,345	)		10,012			136	%
Other income		3,235			5,104			(1,869	)		-37	%
Total non-interest income		60,395			45,397			14,998			33	%
	$	241,883		$	199,902		$	41,981			21	%

Tax equivalent net interest margin		4.87	%		4.65	%

Net interest income for the nine months increased $27 million, or 17 percent, over the same period in 2008. Total interest income decreased $1.9 million, or 1 percent, while total interest expense decreased $29 million, or 40 percent. The decrease in interest expense is primarily attributable to the rate decreases on interest bearing deposits and lower cost borrowings. The net interest margin as a percentage of earning assets, on a tax equivalent basis, was 4.87 percent, an increase of 22 basis points from the 4.65 percent for the same period in 2008.

Total non-interest income for the nine months increased $15 million, or 33 percent over the same period in 2008. Fee income for the year decreased $2.3 million, or 6 percent, as compared to 2008. Gain on sale of loans increased $9 million, or 79 percent, from the first nine months of last year, primarily the result of increased refinancing of residential loans originated and sold in the secondary market. Gain on investments during 2009 included a $2.7 million gain on sale of securities. Loss from investments during 2008 included a $7.6 million other than temporary impairment on investments in Freddie Mac preferred stock and Fannie Mae common stock and a $248 thousand combined gain from the sale of Principal Financial Group stock and mandatory redemption of a portion of Visa, Inc. Other income decreased $1.9 million from prior year, the result of a $1.7 million gain from the sale and relocation of Mountain West Bank’s office facility in Ketchum, Idaho during the third quarter of 2008.

Non-interest expense summary	Nine months ended
($ in thousands)	September 30,		September 30,		$ change from			% change from
	2009		2008		September 30,			September 30,
	(unaudited)		(unaudited)		2008			2008

Compensation and employee benefits	$	63,589	$	63,252	$	337			1	%
Occupancy and equipment expense		17,341		15,751		1,590			10	%
Advertising and promotion expense		5,042		5,314		(272	)		-5	%
Outsourced data processing		2,181		1,870		311			17	%
Core deposit intangibles amortization		2,294		2,310		(16	)		-1	%
Other expenses		34,038		21,320		12,718			60	%
Total non-interest expense	$	124,485	$	109,817	$	14,668			13	%

Non-interest expense increased by $15 million, or 13 percent, from the first nine months of 2008. Compensation and employee benefit expense increased $337 thousand, or 1 percent, from the first nine months of 2008, due to the increased number of employees added since September 30, 2008, which was partially offset by the reductions in bonuses and employee benefits. Occupancy and equipment expense increased $2 million, or 10 percent, reflecting the cost of additional locations and facility upgrades. Advertising and promotion expense decreased $272 thousand, or 5 percent, from 2008. Other expenses increased $13 million, or 60 percent, since September 30, 2008. The increase in other expenses includes $5.7 million in FDIC insurance premiums, $1.3 million in outside legal, accounting, and audit firm expense, $3.8 million loss from sales of other real estate owned, and $1.5 million expense associated with repossessed assets. Of the increase in FDIC insurance premiums year-to-date, $2.5 million is attributable to the second quarter asset-based special assessment. The efficiency ratio (non-interest expense/net interest income plus non-interest income) was 51 percent for 2009 compared favorably to 55 percent for 2008.

On October 2, 2009, the Company completed the acquisition of First Company and its subsidiary First National Bank & Trust, a community bank based in Powell, Wyoming. First National Bank & Trust provides community banking services from three branch locations in Powell, Cody, and Lovell, Wyoming. As of the acquisition, First National Bank & Trust had total assets of approximately $267 million. First National Bank & Trust will operate as a separate wholly-owned subsidiary of the Company.

Glacier Bancorp, Inc. is a regional multi-bank holding company providing commercial banking services in 57 communities as of September 30, 2009 in Montana, Idaho, Utah, Washington, Wyoming and Colorado. Glacier Bancorp, Inc. is headquartered in Kalispell, Montana, and conducts its operations principally through ten community bank subsidiaries. These subsidiaries include six Montana banks: Glacier Bank of Kalispell, First Security Bank of Missoula, Valley Bank of Helena, Big Sky Western Bank of Bozeman, Western Security Bank of Billings, First Bank of Montana of Lewistown; as well as Mountain West Bank in Idaho, Utah and Washington; 1st Bank in Wyoming and Utah, Citizens Community Bank in Idaho, and Bank of the San Juans in Colorado.

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

($ in thousands except per share data)	September 30,			December 31,			September 30,
	2009			2008			2008
	(unaudited)			(audited)			(unaudited)
Assets:
Cash on hand and in banks	$	93,728			125,123			94,865
Federal funds sold		47,025			6,480			-
Interest bearing cash deposits		2,570			3,652			25,018

Investment securities, available-for-sale		1,196,303			990,092			842,348

Net loans receivable:
Real estate loans		787,911			838,375			769,860
Commercial loans		2,558,270			2,575,828			2,452,102
Consumer and other loans		700,069			715,990			700,658
Allowance for loan and lease losses		(125,330	)		(76,739	)		(65,633	)
Total loans, net		3,920,920			4,053,454			3,856,987

Premises and equipment, net		136,617			133,949			123,218
Real estate and other assets owned, net		54,537			11,539			9,506
Accrued interest receivable		29,489			28,777			29,486
Deferred tax asset		29,204			14,292			8,832
Core deposit intangible, net		10,719			13,013			11,653
Goodwill		146,259			146,752			140,301
Other assets		30,808			26,847			30,895
Total assets	$	5,698,179			5,553,970			5,173,109

Liabilities and stockholders' equity:
Non-interest bearing deposits	$	801,261			747,439			754,623
Interest bearing deposits		2,809,756			2,515,036			2,282,147
Advances from Federal Home Loan Bank		640,735			338,456			727,243
Securities sold under agreements to repurchase		210,519			188,363			189,816
Federal Reserve Discount Window		370,000			914,000			140,500
U.S. Treasury Tax & Loan		3,009			6,067			357,095
Other borrowed funds		12,055			2,301			2,122
Accrued interest payable		8,015			9,751			9,810
Subordinated debentures		120,167			121,037			118,559
Other liabilities		34,681			34,580			32,203
Total liabilities		5,010,198			4,877,030			4,614,118

Preferred shares, $.01 par value per share. 1,000,000 shares authorized
None issued or outstanding		-			-			-
Common stock, $.01 par value per share. 117,187,500 shares authorized		615			613			543
Paid-in capital		495,663			491,794			387,331
Retained earnings - substantially restricted		186,678			185,776			176,738
Accumulated other comprehensive gain (loss)		5,025			(1,243	)		(5,621	)
Total stockholders' equity		687,981			676,940			558,991
Total liabilities and stockholders' equity	$	5,698,179			5,553,970			5,173,109
Number of shares outstanding		61,519,808			61,331,273			54,332,527
Book value of equity per share		11.18			11.04			10.29

($ in thousands except per share data)	Three months ended September 30,						Nine months ended September 30,
	2009			2008			2009			2008
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Interest income:
Real estate loans	$	13,330			12,801			41,542			37,792
Commercial loans		36,739			41,212			112,302			124,845
Consumer and other loans		11,150			11,967			33,631			35,864
Investment securities and other		13,211			9,709			36,907			27,777
Total interest income		74,430			75,689			224,382			226,278

Interest expense:
Deposits		9,232			12,518			28,799			42,861
Federal Home Loan Bank advances		2,087			2,337			5,758			12,876
Securities sold under agreements to repurchase		447			919			1,450			3,068
Subordinated debentures		1,641			1,852			5,224			5,578
Other borrowed funds		394			4,487			1,663			7,390
Total interest expense		13,801			22,113			42,894			71,773

Net interest income		60,629			53,576			181,488			154,505
Provision for loan losses		47,050			8,715			87,905			16,257
Net interest income after provision for loan losses		13,579			44,861			93,583			138,248

Non-interest income:
Service charges and other fees		10,604			11,285			29,838			31,355
Miscellaneous loan fees and charges		1,499			1,515			3,821			4,629
Gain on sale of loans		5,613			3,529			20,834			11,654
Gain (loss) on investments		2,667			(7,593	)		2,667			(7,345	)
Other income		1,317			3,018			3,235			5,104
Total non-interest income		21,700			11,754			60,395			45,397
Non-interest expense:
Compensation, employee benefits
and related expenses		20,935			21,188			63,589			63,252
Occupancy and equipment expense		5,835			5,502			17,341			15,751
Advertising and promotion expense		1,596			1,942			5,042			5,314
Outsourced data processing expense		830			556			2,181			1,870
Core deposit intangibles amortization		758			764			2,294			2,310
Other expenses		11,942			7,809			34,038			21,320
Total non-interest expense		41,896			37,761			124,485			109,817
(Loss) earnings before income taxes		(6,617	)		18,854			29,493			73,828

Federal and state income tax (benefit) expense		(5,086	)		6,069			4,593			25,185
Net (loss) earnings	$	(1,531	)		12,785			24,900			48,643

Basic (loss) earings per share		(0.03	)		0.23			0.40			0.90
Diluted (loss) earnings per share		(0.03	)		0.24			0.40			0.90
Dividends declared per share		0.13			0.13			0.39			0.39
Return on average assets (annualized		(0.11	)%		1.01	%		0.60	%		1.32	%
Return on average equity (annualized		(0.88	)%		9.15	%		4.81	%		11.85	%
Average outstanding shares - basic		61,519,808			54,104,560			61,499,662			53,975,602
Average outstanding shares - diluted		61,519,808			54,305,005			61,502,073			54,148,583

AVERAGE BALANCE SHEET	For the three months ended 9-30-09								For the nine months ended 9-30-09
(Unaudited - $ in thousands)				Interest		Average					Interest		Average
	Average			and		Yield/			Average		and		Yield/
	Balance			Dividends		Rate			Balance		Dividends		Rate
ASSETS
Real Estate Loans	$	796,781		$	13,330		6.69	%	$	833,049	$	41,542		6.65	%
Commercial Loans		2,583,367			36,739		5.64	%		2,597,585		112,302		5.78	%
Consumer and Other Loans		697,015			11,150		6.35	%		701,827		33,631		6.41	%
Total Loans		4,077,163			61,219		5.96	%		4,132,461		187,475		6.07	%
Tax -Exempt Investment Securities (1)		441,309			5,623		5.10	%		439,856		16,692		5.06	%
Other Investment Securities		693,217			7,588		4.38	%		619,041		20,215		4.35	%
Total Earning Assets		5,211,689			74,430		5.67	%		5,191,358		224,382		5.78	%
Goodwill and Core Deposit Intangible		157,407								158,297
Other Non-Earning Assets		244,808								232,789
TOTAL ASSETS	$	5,613,904							$	5,582,444

LIABILITIES AND STOCKHOLDERS' EQUITY
NOW Accounts	$	557,003		$	496		0.35	%	$	534,329	$	1,520		0.38	%
Savings Accounts		325,367			258		0.31	%		303,628		780		0.34	%
Money Market Accounts		756,171			1,938		1.02	%		756,821		6,423		1.13	%
Certificates of Deposit		1,071,346			6,540		2.42	%		1,010,269		20,076		2.66	%
FHLB Advances		533,976			2,087		1.55	%		413,446		5,758		1.86	%
Repurchase Agreements and Other Borrowed Funds		892,581			2,482		1.10	%		1,103,629		8,337		1.01	%
Total Interest Bearing Liabilities		4,136,444			13,801		1.32	%		4,122,122		42,894		1.39	%
Non-interest Bearing Deposits		755,682								734,060
Other Liabilities		27,956								34,548
Total Liabilities		4,920,082								4,890,730

Common Stock		615								615
Paid-In Capital		495,410								494,703
Retained Earnings		198,475								195,443
Accumulated Other
Comprehensive (Loss) Gain		(678	)							953
Total Stockholders' Equity		693,822								691,714
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,613,904							$	5,582,444

Net Interest Income				$	60,629						$	181,488
Net Interest Spread							4.35	%						4.39	%
Net Interest Margin							4.62	%						4.67	%
Net Interest Margin (Tax Equivalent)							4.80	%						4.87	%
Return on Average Assets (annualized)							(0.11	)%						0.60	%
Return on Average Equity (annualized)							(0.88	)%						4.81	%

FOR IMMEDIATE RELEASE	Contact: Michael J. Blodnick
	(406) 751-4701
	Ron J. Copher
	(406) 751-7706

Results Summary	Three months						Nine months
($ in thousands, except per share data)	ended September 30,						ended September 30,
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
	2009			2008			2009			2008

Net (loss) earnings	$	(1,531	)	$	12,785		$	24,900		$	48,643
Diluted (loss) earnings per share	$	(0.03	)	$	0.24		$	0.40		$	0.90
Return on average assets (annualized)		(0.11	)%		1.01	%		0.60	%		1.32	%
Return on average equity (annualized)		(0.88	)%		9.15	%		4.81	%		11.85	%