Glacier Bancorp Inc., the Kalispell, Mont.-based holding company with 11 bank subsidiaries, including Coeur d'Alene-based Mountain West Bank, has reported 2011 net income of $17.5 million, or 24 cents a diluted share, down from $42.3 million, or 61 cents a share, in 2010.

Glacier says 2011 earnings were encumbered by a one-time goodwill impairment charge of $32.6 million. That charge was related to some acquisitions completed more than 10 years ago and to overall volatility in bank stock prices nationwide since then, Glacier says.

Excluding the goodwill impairment charge, operating earnings for 2011 were $50.1 million, says Mick Blodnick, Glacier's CEO, in a news release detailing the company's financial performance for the year.

Glacier's loans totaled $3.5 billion as of Dec. 31, down from $3.7 billion a year earlier.

For Mountain West Bank, the second-largest lender among Glacier's individual holdings, loans totaled $707.4 million as of Dec. 31, down from $821.1 million at the end of 2010. Mountain West's 14 percent drop in loan value was the largest decline in terms of percentages among all of Glacier's holdings, which had an average decline of 8 percent at year-end, compared with a year earlier.

Mountain West, like many banks, has experienced some reduction in loan value due to selloffs, payouts, and normal amortization, as well as "moving a few problem assets out the door," says Russ Porter, Mountain West's president and chief operations officer.

"The challenge behind banking is to build those loan portfolios back up," Porter says.

Mountain West's deposits grew in 2011, he says.

Glacier didn't release separate deposit and asset figures for its individual banks, but its deposits totaled $4.8 billion companywide as of Dec. 31, up from $4.5 billion a year earlier.

The company reported total assets of $7.2 billion as of Dec. 31, up from $6.8 billion a year earlier.

Glacier declared dividends of 52 cents a share in 2011, unchanged from 2010.

The company, which is consolidating all of its banks under one charter in a change that's expected to be completed this spring, operates 102 branches through its holdings in the western U.S.