GBCI - Earnings call transcript Q2 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Glacier Bancorp, Second Quarter Earnings Conference Call. At this time all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today’s conference is being recorded. Instructions]. [Operator like Randy conference Chesler, now speaker to hand today, for CEO to would over the your I and President.

begin. may You

Randy Chesler

Alright, Copher, Administrative our Officer; and morning Financial Officer; today. in Wanda. Dose, our for Chief this you Chief Chery, Kalispell Ron us here With our thank is morning Angela Don joining me thank you Good Chief today review our and Credit Administrator. Accounting state Chief second XXXX company Officer; financial our quarter Byron and to Tom results. Pollan, Dolan we're earnings of the and our the we released ready Treasurer the Yesterday

pandemic. very and the company despite team was quarter second of of our core and the stiff the headwinds The the our strength solid COVID-XX highlights caused model, strong by business and global the

pandemic their service their We and Glacier through well the of to I'm to and their proud navigate commitment leadership team, the extremely communities. and exceptionally continue

As and pandemic I almost last from covers our franchise. that miles Montana call, impact franchise Glacier the earnings the noted different across in to of Arizona X,XXX is the

suits business the Our with over local communities a serving XXX XX communities our that divisions customers different us in way best with respond market. and capability provides employees, to unique model to that unique

in-lobby of to in a more advantage Despite by are model to how to of our and with average, continue and in have are time below well national the we our of We take but appointment. with amazed carrying to changing mortality active response with today eight the to testing. This increase rates virus in seeing customers resurgence conditions. Most of on locations states business. meetings our drive well pandemic, are many had at service adjusted cases markets. have circumstances to through the still the cases respond our quickly is most this At the of moved back

pick our beginning lending mortgage record and business new volume purchases, refinancing to levels solid up of increased customers our at the business and home commercial report Our is many is with activity.

has markets the rebounded desire to and to lot As a expected, out of travel. of well due generally very house western in tourism pent-up our get

interest for the with $X.XX, XX%. Our living, low seeing driven that or $X.X distancing core quarter. high we're business income the on $XX.X to by some second the and end were in which pre-provision the increased given XX earnings and cost of in cost the of billion or company's our drop results portfolio were now prior Core the from see dropped core during second reported quarter core by year organically on up the $XX.X add XX quarter, total strength to prior loan of deposits or from the bearing borrowings $XXX from bank the second loan we balance the of of federal was quarter and prior to billion the the points and Net prior this XX our flow quarter. quarter. at Non-interest second of growth Once was year cost of deposits $X.X We loan billion the is increased to of the our quarter the And continue the deposits The or to in of of to points XX% over a again was reduced highlighted quarter. XX% million year friendly core will of year end net the And sheet, current life, that strong of X% $X.XX an was most highlighting significantly home loans. ago. the $X.X compared the XX% revenue from the attractiveness total quarter for markets. XX% were XX into consistent our deposit environments our which second so business. the and protection natural more $X.X Deposits quarter pleased at quarter. quarter. in an increase markets prior the the focus quarter signs results million, our We quarter decline prior quality rates. funding with deposits growth increase quarter strength million, before XX% pre-tax, our share bearing to All $XX.X or and earnings from growth or XX% XX% prior an the of $XX about due increased basis comes cost billion basis the deposit non-interest from million rural million markets pandemic, paycheck social per the additional of really in put and year deposits or to PPP reducing to program the

for approved loans $X.X these with PPP have We closed XX,XXX and funds most accounts about over us. billion deposited in with of

million about earn from $XX these to loans. fee income expect in We

around our the quarter's and dragged forgiveness quarter XXX rates about production XXX. debt The was this customers hold also in Federal effort, of prior with averaged from over a securities part yields who program. X,XXX struggling accelerated XX% the drop number of $XXX million in of was of This XXX down to to So saw Last quarter on upon will X.XX% received quarters, at versus totaling new basis prior margin XXX forgiveness. fee a the income in next to PPP in offering margin the core second PPP XXX ending be quarter our ago. the Pricing we better pace as rate last quarter could of year XXX margin today, us interest Reserve the the million reduction were to The from the X.XX% looked new quarter. point we due of the that loans loans. tough by it PPP as production $XXX acquired X% help as $X.X XXX. late quarter or increased or Total from and few March. portfolio close competitors $X Net by short the increased billion verses was term new during loans during year billion

and year the mid-August. Now prior $XX expected year last which refinance booked very was the on or million XXX% how prior getting XXX% over the $X likely forgiveness increase X million and we which to shows year up our over points a term to from million, most to prior to quarter on prior Mortgage quarter same X.XX% Longer were XX quarter. continues of on sale continue quarter an night over ago. points Non-performing the purchase or be XX% total $X the increase was and increased well, of loans submit applications million, ago. the a but will business million, Delinquent security $XX the with the prior XX lower $XX million debt strong margin. was points of which started over still than was ago. points number at when forward This the basis and quarter and which basis addition The out-of-state of driven as and the up our at the $XX securities on basis income quarter loans strong XX local than loans the and $X.X prior expect basis issued about a SBA the pressure in with less our the a the basis X Debt in of to XX we of or our though, according downward were was net and some quarter. seen of started in record level from quarter taken assets, better production. was actions we basis of an gain income points ending on returns. points rates process, demand. charge-offs million to X effectiveness we've quarter. Credit Non-interest direction performance put versus uptick look have was held mortgage a XX up will buyers maintain return to the last investment assets We year of portfolio loans, by XX% SBA

We've excluding loan points excluding For PPP loans. $X.X representing also the modifications our XX basis about over loans the X,XXX over on been made billion, of have portfolio, quarter, would XX% totaling of NPA's assets. PPP loans,

PPP additional support. We’ve business. busy PPP in handling to we quarter, bit closing the loan excess modification the many modified that loans number make help loans. hopefully We help also modification short received for customers $XXX of made provide customers business a through the will sheets, with but finalized very back disruption seeing. were Both regulatory build the these to to get loans they are we're severe, and maintain term balance there We get good their to record of a million of now like the customers these and later modifications as in PPP requests way in flexibility second and have triple while loans

renewal we'll modifications weeks. While are to a majority them begin see up months, most the of for few of in the more three for come

We the expect that go good modification agreed. loans performing as were to to to number of a of these before receive modification. note agreed gave see paying all that back the important It's as these we customers them

up our inherent the the under have pose good The that three portfolio. due risk enhanced you relying largest X.X% we increased materially hotels loans the loans industries monitoring in higher portfolio, monitoring model of process or of million in to largest out X.XX% the to smaller while solid exposure and totaling they and and XXX,XXX addition with less Most loans of X.X% In XX%. Many future. think not for us into to the is the of includes following are these comprised portfolio. loss our group risk of $XX.X quarter. wait loans our risk of have lower are an a than a and with loan $XXX that COVID-XX on of to in increase of impact restaurants, to portfolio, forecast, by or strength Hotel/motel the these group on loans for we a restaurants, enhanced oil over these is with million travel, This not our million continue of million operators. of of operating credit of X.XX% many pandemic. guaranteed. loans the expense equity, the $XXX take a loans shifting the our so tourism, to portfolio. This basis enhanced of loans, XXX% debt total to for translates are plan million size hotel This or amount is quarter the the these XX over the LTV higher loan Credit the average under the Hotel/motel, of The which which industries, is amount of have in burden. new position substantial for started generally including increase a in foreseeable loan owners $X.X the loans of $XXX not an PPP deterioration Similar smaller loans last The Most portfolio brings gaming point to portfolio. implemented $XX.X We fully. years, industries a primarily economic for X.XX% next of our reopen increased have of million driven we've already of know and underlying gas. totaling by these is adapt and ability monitoring year to hotel industry

million quarter, very credit the quarter stands increased $XX.X and loss or was circumstances. $X.X adequate uncertain which XX% million $XX ago. million, X% a expense we is prior which allowance for year given non-interest and a increased amount at prudent over Total million, the over believe Our or the $XXX.X

efficiency the quarter compared efficiency improvement quarter ratio prior was XX.XX%, to ratio the the an XX.XX%. of For

the from The XX.XX% up end of quarter the book increased $XX.XX per year-to-date year. year the improving was half and quarter year's XX.XX%, company's to and at quarter. Tangible end On prior second ratio XX.XX% from at remained ending the $XX.XX ago. up basis compared from a efficiency XX.XX% the the first share with quarter of the increase XX.XX% at of quarter from $XX.XX company's prior from quarter, end second the and the ratio was of the value from very the the strong CETX last for capital at efficiency levels the prior

in end Our in with This $X.X of to in Bank. the an $XXX at to Federal the Federal Loan remains liquidity Bank, $X.X liquidity $X.X over securities in is billion at growth Federal capacity Home billion core company borrowing million second $XX and access million. facility securities eligible $XXX of increase $X.X deposits and Reserve access robust Loan in and and additional billion quarter to in billion liquidity Home capacity the pledging An the PPP correspondent for cash, billion unused borrowing includes broker At other the un-pledged discount liquidity. with the loans had of due capacity addition $X.X at sources, capacity. of window and banks, over and available to including marketable billion at pledged deposits, from borrowing

Glacier we So, strategy our With at in have one we declared been capital dividend. change And robust of comments. of completed management went see Heritage I any We the XXXst and a don't Reno, position, our our to our few I'm and pleased operational Dividends items March end dividend remain this consecutive the preferred become time. that Small-Cap excess Heritage liquidity this in before conversion Scorecard my strategies. Bank Glacier we capital and have conversion to the and to bank in XXX. published and smoothly, it report in moved a important company's quite excellent teams S&P finally, rankings XXXX to platform. an selected the the of very the a Bank a Heritage And week the for on Bank up part XXX, Director core thanks will from just My bit. up be good MidCap director moving and conversion.

the XX last nationally, banks and we number are in up For number $XX between assets X, Top year. $X that's with from X, billion billion

my overall, that line may the formal from an outstanding any ends open the for So performance questions Wanda ask And not you That I’d team. to remarks. have.

Operator

[Operator you. Instructions]. Thank

a The first from of question Young comes with SunTrust. line Michael

open. is line Your

Michael Young

Hey, good morning.

Randy Chesler

Good morning, Michael.

Michael Young

PPP, on deferred the rather. the obviously starting expenses just guys Maybe expenses or recognized have you

to fees just the you of back we the expenses as figure into the kind kind so and cadence how to the And I move both flow trying expect statement income of forward? was of out

Randy Chesler

So, year we earn fees that total a we've period. been over amortizing the expect to two

that So in that started in financials. the the second see quarter, can you

to and mean direction SBA as that's paperwork the I going applications, going get that around XX to of probably quarter. night spilling gave the so have are going forgiveness most, to just how that fair first of You noted. turn us days we They loan uncertain we quarter, fourth to about for do a know amount just over activity the in so probably mid-August. expect into to in that's the then those accelerated. to how little change; it pace start I the on see believe and last submit We a

know that's the those subject the So they of two still happen quarters outlined some that acceleration to sticking will loans SBA and night. in those to you process last

Michael Young

maybe broader maybe And business just and thanks. of Okay, question, the demand. climate overall kind loan a on

banks. You a obviously guys a very have broad foot print with lot of different, subsidiary

just be weakness about, of what may to you areas may think pop-up various So kind you trying issues or any? credit some strength if in what see driving and know areas

Randy Chesler

example, And customer virus of level on starting owners a well footprint, builds one the in the and very, is surprised that's but of activity market, where going say Yeah, Arizona back-to-business press about for across roads. of there see that surprising I'm there. the business strong the to total a lot I'd and consistency you talking issues, very in our

business they investment. all infrastructure have are ever they’re the know more with they You doing than backlogged;

the – one pace cars can't Another in of business, enough get sell. to car

and So new know activity builders see up. home activity, weakness areas surprising we reporting of you real on so amount lot a of of a no homes, popping

you the of up similar Utah If all Montana. north way into moves kind go, story; further into it Nevada,

concerned really starting and area So to risk an are enhanced surface that than already that that is this we other are the point at as are areas areas business is to our about. customers that mentioned resuming nothing the from hearing bubble we that

Michael Young

maybe just then one for me. Okay. last And

kind of we of expect kind spreads in this maybe and not widening refinances what imagine of books. may some has the within turn decline the I'd yields. there faster and noted loan not You loan been

an on do that or kind like pressure just core be around going feel that, yields basis, there's So there loan new around hold you a is ability XXX there? yields you think incremental to do of to from level loan

Randy Chesler

still the flat fighting little and a softening but the this Fed bit, markets and curve. and You're growing spread right we're the about the

XXX we is rate – looking or in on if think So quarter I range kind little XXX probably it you a better new production, to is of the that more where interest going a what's curve. function really on that and it whether you're at know holds think in of you know holds this on today, gets

Michael Young

back Okay, now. thanks. I’ll step for

Operator

Thank you.

a of comes question next Our from line D.A. Rulis Jeffrey Davidson. with

is line Your open.

Jeffrey Rulis

Thanks, good morning.

Randy Chesler

Good morning.

Jeffrey Rulis

hoped Maybe how quarter full QX trying all, based overall stops late take I margin guess strength us the think. third on I’m if it maybe just moves certainly made you securities and – into recall, maybe the in question brought I the margin. does to the second the in – further yields Maybe that remind [ph] at support the and quarter.

noted of shakes out, see maybe a got you but the liquidity how of moving lot and the, lot You pieces? loan a to pressure, want that just yield

Randy Chesler

been at Yeah, there work that has and the so the showed through securities, it. lot and looking time Ron on we've a spent of of this doing I debt quarter strength in securities, think a lot

Ron, a more color want around debt security? you So do to little give the

Ron Copher

we put so the X.XX%. muni’s quality deals and equivalent on munis, the those million yield of we bought the great tax got, there late high about was the and Yeah, $XXX were XX% March

bought XX% the which J.P. also set the of corporate you names banks, that know large We Morgan, were through were million it, etc. $XXX

things blended based we will So that those long a and are on really showed with very and munis a called, up in yield XXX quarter, second were those what today. and we all XXX, so the continue have the that's till call

really but costs, down as we're that those able an certainly his to funded been that you to we’ve about We Randy so pending, and financing year nicely. remarks, pay now so deposit know that. in came good list, borrowing very talked feel those about FHLB, will this be think under we through and next So initially down at continue

So helped. have week were the both just up the Fannie, a it what mortgage just we has – towards corporate securities, on latter XX securities. sides XX% structured And points. liquidity, excess MBSs XX% and really which of about Freddie, been ago, then combined $XXX residential doing just backed purchased really basis of million showed were we June, the with of the half yield,

the So market that's where just come. has

really that opportunistically why what that, March in pulled that's that’s want bought able late why otherwise. forward three to were described, things when days I because buy know you have – So we to that we we would I

Jeffrey Rulis

Any the what these increase that kind of sort in or thanks. in non-accruals, the pre-COVID detail at the, Okay, stressed grouping where on of was uptick.

Randy Chesler

Yeah, I’m the but those. very give to ask going slight to Tom, around Tom a uptick, little more you color

Tom Dolan

of for half slight uptick, was Yeah, the was CRE, about part little, the Ag. other it a

All of pre-pandemic were these weaker credits.

know side, were certainly up the all may But the kind in hyper anyway. On that drive. pandemic pre-pandemic have the CRE issues would you issues the have these likely of ended here put

Jeffrey Rulis

one on was sense last just three Okay, months deferrals if and were the or a then for nicks XX% months, deferral. you've I the what think to Randy a deferral time trying in in breakdown. the got of you XXX% just mentioned a but get three line. predominantly timelines know on I don't of

Randy Chesler

It’s about XX, three month XX.

Jeffrey Rulis

come vast vast comment expired, majority those – in, I’d come have seek have a extension? and the three guess majority and end those that or in your you’ve not a billion at $X.X on those Okay on, deferral seen quarter date, I months to hoping as get

Randy Chesler

pointed quarter, second tell, month draw just you so because I very months, so come to conclusions. you finalize out, few I and the three we to forward, later the know early we've in know to Little seen hate start as these

seen we've on what early put but we burner odds with were, bit and encouraging, PPP in later production, to the so we our it's got them because a is quarter. busy little the just back think I them

Jeffrey Rulis

I you. see, okay. Well, thank

Randy Chesler

You're welcome.

Operator

you. Thank

line James. from comes question David next of Feaster Raymond Our with the

Your line is open.

David Feaster

good everybody. morning Hey,

Randy Chesler

Good morning.

David Feaster

Just heavy done. just that? about guess most and redeferrals up I has we how follow builds on mean any I it potential thoughts as topic been you lifting some, commentary, forward downgrades? rating think some reserve you do just wanted from risk like might to know redeferral implications and kind of the of reserve. on for sounds your going get the I

Randy Chesler

– know did into think what and get you that, to Yeah, answer. give you a are to what just will I’m your expense could sure ask be you to asking David for you or Tom question, insight the, tuned we maybe little specifically but you also your going make you're

David Feaster

migration incorporating – to you just most what’s of economic whether most guess thoughts I or credit versus going you sounds the thoughts back – additional the you be builds loans just to reserve on – potential forward I just year thoughts the completed on rating in your or thoughts know how interested your on downgrade, mean going Probably and half as of is just by the credit reserve based driven only about, already it implication. like get in going risk reserve Yeah, forward. deterioration. builds know build any plan the scenarios commentary redeferred from on

Tom Dolan

Yeah, this Tom. Dave is

the material but higher little I today, pointing with the the or credit know deterioration a or of positive, But it's pretty especially early we're early, footprint tourism heavy we're probably of portfolio, early. any know the you where I world with it's know agree know little forecasts you all is borrowing a signs think that lifting areas in done. at. comfortable given in would that you with lot our still But deterioration we

David Feaster

appreciate and acquire X,XXX the able the then you on PPP of to new from customers I Okay, the were that commentary program.

then this been translated curious, maybe And from might into how that interested lenders have at similarly, a competitive is in a might of or at larger Just frustrated be bank opportunities non-PPP be bank making growth. hiring change opportunity for who increased a creating and a you’ll? much there

Randy Chesler

been slow and I one customers. very we was came their anxiety they this broke That money the and that banks them, people turn of clock for response of – to a you on around camel's a to business number amount this back and customers, had wanted do in and the calling there started, these if lot PPP, some a our to the tell of center the straw when of X,XXX the were a of of of were we the years and then number the the with them you first that that was that's that start fair of would know a back me let people were we've so Yeah, you get into over to a the those divisions fair center and and banks. X,XXX fair been bank amount portion money with that to looking with.

And so require so to the relationship a year one know that is, we step have for you do a all with all is accounts them, think next those us, – and we They to have with PPP. deeper established deepen open, now did now, project the the – our I that is we relationships. for be

we So about specifically – we deepen and a half an talking all month to now our meeting how with a deck spent talking to on had about all-hands relationships customers how for it's just last that relationships divisions, a day an X,XXX bank, are the small we opportunity. acquisition think us. you the and it, lending new have if Its bank, about them in like that into all those the

we'll how do. see So we

over on one the we good relationships now. bank are sitting focused We year, on to-do list deepen next and those the another in and things that’s it is the that's very have business further of for our right pull

good there – But I in I that of and as think well on those have want of But present a short months In who know markets on you staffed. to we’re our always we XX terms we'd join good of pretty I a new know take time focus people X,XXX think of deepen have people it. right or most list is opportunities and is Glacier, now over – we over really relationship lenders, of next mean commercial how our but advantage customers to to themselves, to you generally the us like know maintain is list when the right. we we new so. come

David Feaster

great. then And more, talked commitment dividend. that's you the just to about the Okay, one

performance, a to when think return? capital of you think return if you much thoughts strong maybe and raise on can you get have do pushed hearing dividend You you’d Do just regulators? growth? dividend where and from overall or you you know capital any try your back deployment you credit What now capital there’s as are thoughts, your to the excess

Randy Chesler

we're has Yeah, in you position initially the thankful continue pay to bigger banks, while other some been than we're around dividend that of discussion very there industry this, it and a slow was know a a lot pay there down. direction to some a got dividend, of to

I think it solid just – be very smart need view, have of about point and and solid capital from very to to maintain our liquidity you is keep which a very push guess payout your think point ratio don't all a capital reasonable out in a range, that dividend. it at this legitimate concern it's retain regulatory and sure banks because through I make to I

little the pay really a make that all you to less paying So regulatory we're percentage of it's think on standpoint ensure don't higher going issue, with an able I so steps to dividend. become from – I know don't we capital, standpoint, to take think it’s are out sensitive, front to I but our an we're that may want we be more burner. of earnings companies it But an issue proactive industry a to from be for sure

David Feaster

great, you. That's thank

Operator

Thank you.

Our Matthew comes next question Piper the Clark from of line with Sandler.

Your open. line is

Matthew Clark

Hey, good morning guys.

Randy Chesler

Good morning.

Matthew Clark

On benefited so. PPP, or the cost, stuff expense, $X.X deferred Fed the million origination about the you on from XX the comp

$XX of You so strong this we to rate run about close the expense, quarter. some should probably of production think guess, that masked on also added the how that I relief. million comp mortgage side,

Randy Chesler

about of production increased mortgage we’re Yeah, expense, play so level with right the that deferral in you're having. comp due dynamics of you to the there underneath the is kind and know then record

you view rate maybe to Ron that run there. we're So see can the little we of kind Matthew give think a going of

Ron Copher

not that continue, So $X.X bended, million higher compensation know to. that's to and alluded you certainly have going benefit, expense did was Mathew, but right, we you a that’s

included million we in So some noticed think and the would roughly know compensation would $XX we be where people, quarter for that rate third you be expense added I would so the the you for that compensation. higher run

income, know higher that. production you had a – we body on and all great but paid banking we that the mortgage then count, we based in so had As so that’s

Matthew Clark

$X.X then that you went focused just looks atleast That’s risk of okay, the there toward that on. high the thank portfolio, needed? the PPP, more of from Is other perspective may lease given that support portion industries just know it that great, know billion, million had an on they PPP you. concern be And some your you of $XXX that the from you're only the that industry you

Randy Chesler

of. mean know aware it widespread. did. match has gone a you Tom PPP we at up but I a any? know certainly I I'm the and PPP pretty There was don’t was that look the of if with have bit Not where you mods,

don't So that? you do Tom, on any have know I thoughts

Tom Dolan

No, you the risk There's that I we portfolio. think nothing see enhanced gives then we’ll immediate are of the know. mean PPP pretty outside that widespread industries what have I concerns the any me in

right busy, keeping with some and now that back through through existed for overly know has you We're that shutdown had PPP, and Outside elective pretty remained at is when you healthcare, summer plans a good. know the did in contractors Mathew industries vacation also example providers its state Construction the busy had things that receive So our some of know very up, the pandemic I you of providers know – over. very construction. that once pent you of opened concern. very and of you and our know looking widespread up procedures of lot demand the were the you strong very, lot medical really are the is are some a and we look conversations nothing our healthcare

Matthew Clark

rate And how but move you you through as I process, just you these of of for like you. some I deferrals like now, feel have migration any on going just we you you're credit then be yet this it the Okay, sounds mean thank through – going seen up some come there and a to renewal. might migration, as deferrals on kind guess are or risk

Ron Copher

this some higher but of risk know I out, would modifications yet portfolios. as haven't seen expect in migration Matthew, we any We these you especially certainly some roll

to a I serious, deterioration, detailed not you those So expect know or credit I perspective, atleast we each credits through anything at very yet. expect as would but continue dig don't as you some of significant know

Matthew Clark

Thank great. guys. Okay, you

Randy Chesler

welcome. You’re

Operator

you. Thank

Our comes next Stephens. from the Gordon question of with McGuire line

line Your open. is

Gordon McGuire

morning. Good

Randy Chesler

morning. Good

Gordon McGuire

hoping in rate out Can release an we help of the round state you line I credit the mentioned was run The assessment a credit I item? adjustment. helped. for about think guess that couple has or regulatory Ron, expenses. past the FERC could us quarters the

Ron Copher

that nice to the a go is number, rebate $XXX,XXX for first not back – state the way, not it so that will Yeah, to up It’s they not have then a but rebate the what… what have was had and year, the expense the of – by ruled wait half. the second big for the out part you what a to but stated about and is, see we'll but remainder other was

Gordon McGuire

said and I to $XXX,XXX think what to was a for the I assessment quarter $X.X rate a trying I you it. gauge addition was expense think get regulatory was million. run in for that the

Ron Copher

here, I one was me Angela, number? what’s – Let that X. – look second.

Angela Dose

$X.X million.

Ron Copher

million pardon Yeah, per $X.X quarter, me.

change. have you’ll think to I

Gordon McGuire

color provide more you into quarter. outlook hoping heading third quarter margins the Then I could little origination volumes in the the into there what's a mortgage, this was and

Ron Copher

loan the of origination the On then?

Randy Chesler

mortgage were the are activity. the of way obviously terms was of Talk] level the above yeah, where year Yeah, in substantial and we – just in [Cross we prior

be price it’s double now very a We've from but the of almost of to concern a level quarter. there's it's a you about there. people the activity dependent nicely. in of know the be – the almost of our is state activity, coupled of shortage that's at on is able with as the those those so of what houses builders been inventory, lot almost line for you if outside of is, lot out because demand. spread it purchase of your strong build quarter, weren't increase that it's know in was services, market, volume the the the XX% I first obviously You seeing That going maintained the going surprised noted, like on going where now know and we're first to pricing quarter is purchase of so. market is the to know you question The are another holding to there, Future on really look

Gordon McGuire

brought you costs bring X%. balance a Ron, still to repo then there yielding I relative the this it's total still to And but is good. down smaller those guess down costs Okay, around customer quarter, opportunity balance the but sheet, lower?

Ron Copher

There some dropped is, our categories we definitely. so and look you still bearing all One all thing out, know at wholesale, interest deposits, certainly liabilities, room. point to got of – you the funding even when

book the to come know CD’s, that off, then repo’s the down You here point, your [inaudible]. definitely will and rolls that

Gordon McGuire

you. thank Good,

Ron Copher

Sure.

Operator

Thank you.

of with Our from Bohlen the next line question Jackie KBW. comes

open. Your line is

Jackie Bohlen

Hi, everyone. morning good

Randy Chesler

Jackie. morning, Good

Jackie Bohlen

bit the going unfunded I was you in line then other and on can a driver wondering was just provide little the what the your what items forward? commitment in non-interest was and are on color quarter if expense, of that expense expectations the

Randy Chesler

is reduce net with you get now expectations kind Yeah, accounting to what the know little answer on you our I’m your volatility what has time and our entered little that the about and can none rules, about to that. so That's Tom going has talk to way are. accounts to a color ask maybe there a new a kind landscape is how talked in occurred been and frustrating maybe more of and of we've

Tom Dolan

we quarter. So yeah, Jackie increase the had reasons are an there two primary in

newer. allowance you is, forecast of it. of for of liability from their our well, on sheets a increases, similar quarter. seen the can made unfunded lines know have with and actually as average their unfunded you chair and in for lack and of mentioned, loans changes borrowed are weighted and And lives But it’s then to unfunded the significant the revolvers, balances which using construction change. unfunded a you less we've the balance to economic Randy as funded the side volatile can speaks and the the more less, and secondly, First, it bit that of know rates know as little that is negative the longer the also credit. current utilization fairly to have the strength there my are a They Customers loss, up loans construction funds. is reduction of goes side It's combination sensitive of revolving along the in been of be need lines you – over know credit

So get in know the the into expectations we're future, starting to Ag growing portfolio. you season on the

the I We’ll some of think utilization there. those also some draws see see continue. as construction portfolio we'll seasoning

think out, not the volatility quarter. quite we maybe So I certainly it’s this project expect it to difficult little a we’d saw but

Jackie Bohlen

if you Okay, wide thinking was I'm $X.X about to expense because not this amount maybe of properly, but me correct unfunded lower related those had the down. go a offsetting, commitments an and there provision in balances million

meaning lower So utilization increased properly? requirement. Am declines a committed declined, commercial your balances about then I but as requirement, because had unfunded reserve that that your that you thinking

Randy Chesler

properly. from know But Yeah, to it to you that shifts as think behind funded mean about I between the you're know thinking the decrease the side. have the I don’t a you its you – unfunded the I it, logic was what number nail down I difference can't follows know two. balances

Jackie Bohlen

I was variance else the the But in expenses it around charges of to million that low swing that quarter-to-quarter, there. that’s of outside others, caused there pulled for lower? and that which so other adjust item roughly quarter if and merger were unfunded out it unusual anything commitments, looked maybe and $XX.X the like was Okay be

Randy Chesler

No.

Jackie Bohlen

Right.

you it’s pretty would good So a commitments outside runway of unfunded say?

Randy Chesler

$X.X PPP with from of the million Jackie, coming you’ve origination. the deferred dealt comp

Jackie Bohlen

at item looking speaking yeah. line there. quarterly the specifically variances to I’m Yeah, and then expense the just other

Randy Chesler

that’s correct. Yeah,

Jackie Bohlen

we've you. loan does providing detail, there? on last When one, that of level closed PPP costs then loans again I look once bit the offset just that fees in and at origination you Okay, thank And one the a sorry thank little technical. the that for include

Randy Chesler

you fees, for I what the the in so there the at gross table are looking it believe those Is release? PPP. are

Jackie Bohlen

the in release. was It

I now in from. I where sure $X.X just model, the I’m so It’s got right Sorry, my not it million. it pulled

Randy Chesler

Oh! For the quarter, $X.X million.

Jackie Bohlen

net wondering that’s loan origination number the I’m just of costs? or if deferred gross if already in Yeah, the that’s

Randy Chesler

Yeah. the That’s net number.

Jackie Bohlen

Okay, perfect.

Randy Chesler

Yeah quoted by XX, the gross number, not the netted in that's I number my anything. out

Jackie Bohlen

you. thank great, Okay,

being for technical. so Sorry

Randy Chesler

good. that’s No,

welcome. You’re

Operator

Thank you.

Tim comes Janney. next Our from question Coffey of the line with

line is Your open.

Tim Coffey

Great! Thanks. everybody. Good morning

Randy Chesler

Good morning.

Tim Coffey

opportunity with it enhanced right What's be kind the look of kind with would portfolio looks like your at that content Randy, monitoring in open you're you Is categories? like it, actively what a of approach or or of bit it these managing we something the that quarter-over-quarter. portfolio? have down come it's as down to to

Randy Chesler

carved – COVID-XX the have area That’s due make to early thought to we out ask risk. a we as going I'm that Tom to on comment that. most the the that would

does that proven it's think you to think area we risk. the an I know be have

managing it want some are we you to how of give that. terms In on Tom, insight

Tom Dolan

say very a closely. would we're I that’s great Tim, Yeah question. it managing

the itself. in the on depends originations, downs may of were risk we're as the so know the actively credit revolving which reductions, wouldn't of and And It I exception portfolio, say really individual side, or amortization that portfolio. normal we combination to there credits, increase but credits in there You and some I the of the are terms anything, new mentioned then stronger enhanced weaker had just be are and looking there restaurant a pay hotel earlier, here of like from on the portion and just there.

Tim Coffey

fair then those many portfolio modifications quarter, of to a Okay. prior comparing that there the think are reported day – the when amount No, the of on coming expiration? at on that’s helpful. I you And How was also in up in XX May.

Tom Dolan

between You know and about we a as have Randy split XX/XX days [inaudible]. mentioned, XX

starting We weeks will course within months so six the longer. of are is and hit XX then see now just to six exploration, four those the be be probably next the to days going to

we the together. of risk throughout frame is on know are enhanced them all time the You the kind and writing – dispersed enhanced modifications the

Tim Coffey

then I of okay, loans, XXX,XXX? do you those are an have under percentage And Sure, of PPP understand. the on idea what

Randy Chesler

$XXX,XXX. is below average our Well,

of one the ones. have We more granular

that what total is what number. do under Ron, have are that we’ve – our terms loans In what percentage the there did – has got we with…? of of $XXX,XXX, Ron we

Ron Copher

in is total below Of its roughly the that of $XXX range the million, $XXX,XXX.

Randy Chesler

so, Okay the million is $XXX,XXX. to it below [Inaudible], $XXX

Tim Coffey

year. Alright, banking, mortgage congratulations a on and then on record

Randy Chesler

you. Thank

Tim Coffey

organic or know if the like you putting these they loan starts into would portfolio down of the stall growth to Yeah, elevated if more slide in you volumes half? have, consider second stay

Randy Chesler

we portfolio rate where it No, is. like our

engine, help that customers. way, but as a as with don't at to branch maintain the fit know just customers relationships a growth box. the realtors our there You way We don't portfolio a quite is with to look as it and

a look So that at as we grow. way to don't significantly

a has think flat, stayed of I about our actually portfolio little. percentage shrunk a

We’re right very is. with keeping happy where it it

Tim Coffey

Okay. costs, on deposit what And deposit XX? costs June at then were

Randy Chesler

– or you total core are costs looking deposit or funding total costs? So, deposit at costs

Tim Coffey

core deposit cost. take I’ll

Randy Chesler

go back want you if to So the quarter, Ron, this so… to end of

Ron Copher

were Yeah, end… talking right you the just for the at –

Randy Chesler

the end June. of At

Ron Copher

the points But time is. That there we time, April over so because again Yeah, to are definitely XX from May of basis again that is deposit what XX not includes points steady dropped and it is XX that CDs, to there basis sure, were, course. June. and

Tim Coffey

appreciate Those are it. all you. great! questions. I my Thank Okay,

Randy Chesler

You’re welcome.

Operator

Thank we follow-up McGuire you. with have a Stephens. from Gordon And

Your line is open.

Gordon McGuire

XX? quarter the for or Hi, run up. is the thanks for compensation rate the expenses bringing I that did back follow-up. third apologize say you Ron, XX for

Ron Copher

XX.

Gordon McGuire

mortgage XQ. assume XX, and are does similar that and a commissions strong level to at

Ron Copher

it Yeah, does.

Gordon McGuire

fourth number. So had moved that lower that expectation from the would quarter probably be

Ron Copher

for sale, yeah variable decline. expense commissions the decline, Yeah similarly would the that the the extent the to on gain

Gordon McGuire

you. Thank Okay.

Ron Copher

Yeah.

Operator

Thank over showing I further the no management turn like you. to would to back questions. for closing call remarks. I'm

Randy Chesler

dialing for it. you, today We a day have appreciate Thank weekend. fantastic us. your in and to wish great Thank call to summer want Wanda, want thank and of I with We to spending on part everyone the a and you. everybody

Operator

participation. Ladies for today's you this your concludes and gentlemen, conference. Thank

You may have a Everyone now day! wonderful disconnect.

Glacier Bancorp (GBCI) 24 Jul 202020 Q2 Earnings call transcript