GBCI - Earnings call transcript Q2 2021

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Operator

Good morning, ladies and gentlemen, and welcome to the Glacier Bancorp Second Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Randy Chesler, President and CEO of Glacier Bancorp. Please go ahead, sir.

Randy Chesler

All right. good for -- joining and and the Shalon, you thank us you, morning to and group Thank today. Administrative Don With morning me Pollan, Credit our our Officer; our Tom Officer; Administrator. is this Dose, Chief Chery, Chief Ron Copher, Treasurer; Chief here our Chief Byron in Accounting Officer; Angela Kalispell Dolan, our and Financial growth. We showing strong divisions to see finished our the second quarter of and pleased deposit XXXX loan

year income to recover markets on in all was continues the share year of to quarter. XX% national and into and more subsidiary XX kicks to million year $XX.X basis loan basis show the quarter. XX or $X.XX. quarter delinquencies million, million points the share loans. the and prior quarter of $XXX then basis quarter. points touch from as XX% the second earnings per the annualized XX prior are provide points, $XXX observations quarter during strength increase net or prior XX% and totaled Nonperforming points high from and or percentage annualized or generated of increased XX% XX We over per from Core year's million points the some an $X.XX, of prior assets portfolio, decreased of basis basis Our current and a beginning million assets net quarter. from $XXX in increased highlights Payroll Early-stage the I'll $XX.X season the of Program prior second in second prior quarter X% prior summer $XX.X loans $XX.X XX points second the earnings Diluted increase prior of decreased of year additional million quarter were which loans of million economy and $XX.X year diluted the loans, the gear. basis million. the second an from income on current increased of increased as deposits or XX% Protection XX $X.X million business quarter $XX.X The or excluding quarter of second the compare billion

of Our portfolio in forecast. million, second $X.X quarter. which improvement or prior quarter our $X.X expense benefit only or to million prior the reflected loan was X% loss Noninterest and X% the million the increased economic $X.X increased million and credit from compared $XXX year

the declared company team Overall, XX noninterest $XXX share $XXX Excluding per prior for deferred to wasted a quarter has compensation total Glacier dividend consecutive from second quarter. increase and X-state the an quarter quarter. of In-migration We new quarterly a the strong quarter regular declared compared loans, million the PPP XXX prior in million expense dividend. the residents of increased back over $X.XX times. dividend into was per and of year in second prior has originating current the time X% share, no footprint continued $X.XX or getting and quarterly dividends business. The our delivered to

real were or Montana, PPP growth in visible tough XX% the -- national commercial record weeks all sale see demand. markets activity homes many loan raising prices are We hotels season We the as are increase, annualized real Nevada loans. prices and of lit vacancy is parks markets tourist to summer season growing the loan control Residential the pleased off and Signs estate our across footprint experiencing with of came cars leading solid of for that increased loans. and $XXX find. C&I addition, are and excluding with sign inventory Wyoming everywhere. our X-state In saw were available very all and from low. to almost kicked Rental continue growth for growth million estate to well. no packed, crowd. Restaurants are a had Many to again

X,XXX We from quarter's PPP, loan continue million the to about on this as of part relationships round with coming of commercial new build $XX group. volume customer we this up X of picked

year X excess is All good all third this, construction and Glacier of very Noninterest-bearing the and over deposit help of interest reasonable. quarter $XXX X,XXX year momentum the the prior X% basis loan and more That PPP year grow. million ago. impressive of loan this believe $XXX along million of forgiveness. when or across end end customer we that X points, and deposits We a reinvest new loans are or our $XX.X had and PPP to the or quarter of the quarter growth is second quarter. even core X,XXX over XX% well consider the position million the $XXX regular basis originated government you increased the processing said, quarter from we totaled business. from prior Total team unfunded prior loans sticky and incredibly from Core X% new $XXX the pandemic continue net the billion deposit of our from million success excess down this driven the still over deposits We with to We the importantly, in in XX% we from second X billion $X.X quarter footprint securities over with loans to the increased last pay cost a of at X% growth extremely down the a of new our in billion, due Core strong have new over with at increased of down unprecedented the us loans. lack liquidity being and stable increased points XX% production borrowers and most $X.X was with establishing entered growth low-cost basis deposits full in quarter know or Considering into the growth these and debt for for point of relationships. loans. competition year new as still billion prior level year $X.X quarter. up and substantial $X.X loans spending billion increasing that income using record second to liquidity to headwinds will some the growth stimulus, deposits due by new our quarter to target

net of XXXX. current fully We new total XX% continue to forgiveness the of risk increase deposits, invested purchase was outflows, short approach margin are Debt percentage to the in as quarter high-quality given investments excess liquidity and average XX% deposit of X.XX% some at investments. rates assets securities the core a PPP and at point liquid with in earning low of taking represented result, X.XX% on the last the a excess to current The to X.XX% in quarter. debt quarter tax-equivalent compared SBA and company's securities life loans. and We at second end highly of as cautious compared from with quarter basis deposits prior a XX% the the a targeting interest and the end and year quarter the for a assets of prior

the portfolio yield X.X%, portfolio interest which new Debt prior quarter earning addition Earning The in the of X.XX% the from quarter of $X.X year. was asset Fueling X.XX% securities over and and ended quarter. XX% yield a $XXX or X.XX%, the increased loans. in quarter of interest core was the impact quarter core the around XX% prior in in down yields increase and in with debt the significant decrease prior XX on yields of the securities drove assets from basis portfolio prior margin quarter the loan of securities on the on debt decline start in yields. have and lower-yielding loan net net $X prior decreased second in the the the prior added decrease from in the from down at XX quarter. year to to the quarter. points due yield. the to margin XX% earning a asset points debt the billion core production securities We The decreased rate ended X.XX%, amount at yield new X.XX% the yields The billion of of basis down a million at compared in at combined X%. Our quarter XX% securities debt the the from investment

amount our margin continued interest new income interest net debt substantial experience net and net in our margin Although $X.X PPP of fell. quarter, securities interest to loans, quarter a increased the downward less because while the of million the adding pressure for

loans business reduced in hot our $XX million the quarter, is flat which quarter. the loan second the income. The Core the the The expected $X.X million, $XXX concern And the were longer in in from of be -- good from XX.XX% bit deferred quarter by relatively service to expense loan of the be across sale. prior declined to net they charges housing which or expense by XX% continues primarily less $XX due second of which new X% this only prior and get yield The million focus quarter supply prior minimal quarter making the last and to on including the down $XXX as originating of year efficiency was XX.XX% refinancing forgiveness million expense divisions margins increased hiring for of the $X.X income $X.X interest quarter biggest Noninterest continue the $XX fees compensation Noninterest our steady slowed management gain from on ratio increased normal. growth, or new less do prior our prior PPP XX% incoming available to we the miscellaneous quarter. was sale an prior growth margin Gain-on-sale charges, was and to million homes for to back our and And the Noninterest year million PPP will in remains as year, was the expense growing was in mortgages, are the current flow quarter. residential down the driven markets million in from quarter. the quarter. by Our from million, XX.XX% than impacted footprint. and as market $X was and takes quarter. decreased a to estate curve. the increase deposits, most prior or fees, for an real million from with

to been and in have would quarter second XX.XX% quarter quarter the a ratio year the XX.XX% from compared the in the PPP, current XX.XX% Excluding prior ago.

very is Altabancorp proceeding well. with combination Our

taking Best And Glacier XXXX the year. consecutive Director their honored consecutive also in outstanding end We the the very to finish care Magazine the to sometime performance on bankers the closing for And continuing Their are communities billion job of with and year and of our by a customers part This first business. X a the to been serve second together grow did top the a their Altabank from conversion far Glacier ranking between a of get $X with that growing on Bank I've second of XXXX. $XX the finish. business. top-performing an impressed them hard team planning the State in apart normal other while and focus Bank Utah back was Alta's industry. top had and again of Award working October customers and was once to Glacier in working continues is the for billion. at closely with banks set Bank X honored in

analysts for any I'd line ends like open have. questions remarks, may formal now and that my Shalon So our the that to

Operator

Instructions] question Rulis from [Operator Davidson. line the Your D.A. Jeff from of first comes

JeffRulis

I'll with start of item some line some detail. kind just Randy, maybe

wanes then just walked some down is, a part terms you components the flat? of I tie kind gain But mortgage on on think where the think see that X-part of unit I'm sale. through million, that I how and guess -- Granted, of question, I deployment on is of with on of gain dip focused could to But second trying it's -- you heads. I expense side. run well. there. And rate guess liquidity mortgage pretty kind kind the looking in strategy a other expense at on that expenses the adjusts the there's variability in if if the a the $X.X there sale being expenses

RandyChesler

pleasantly No, were that. coming more lot discussion a doing we in expenses. less we some that And a the cover expenses? little very rate touch a lot with I'm than people see But I in difficulties of Ron, you again, bit had expected. hiring. to ask to do think to about want of of given less, Yes. We run Ron surprised going to is, the on

RonCopher

Yes. is This Ron.

closer be will really rate run $XXX the to think million. we Jeff, So

You that heard ramp and Randy talk about we're looking the to hiring, up.

bit have on equally, So team the salaries. higher business a But additional continuing -- divisions continues expenses to we'll we'll the some the as are more all get development road. out have count, of back head

that, think well. is the we But So as an that appropriate million $XXX run think will we rate. increase

JeffRulis

could I that you is ask is your And think kind And mirroring for of the what group? Okay. showing? forecast kind mortgage the MBA expectations of

RandyChesler

still estimate. Jeff, we're we that's Yes. still a -- good think

we MBA. we with XX%, have the biggest think down XX% homes, our supply of to consistent I said our So short -- XX%, about such concern. Again, a small that's consistent

continues market the well. So to do

responsible are rate well. And this stay houses boom. saw we've, in think, I the -- but with in say, builders. But we kept they're last We very continue building, long. just in-migration, I'd in to market the than don't a, the also more They do much the

contributing a shortage. So to of housing bit also that's a

JeffRulis

one -- provide Okay. on. on And color big came win the Any brought one. one is, the position to how what relationship, the last it could you just you maybe there? asset The and that nonperforming as

RandyChesler

can Yes. you -- I'm going a lot detail. Tom little can But on Tom obviously give spent that. of a We've cover time that. more to

TomDolan

what The liquidation. one it's it's relationship, not is secured. process It's it's of And kind in an now We're issue Jeff, ag one-off. the of is showing relationship. adequately right Yes. market-driven. predominantly we're

think as I not it quarters, next X be So seeing closely. today. But the the at X relationship, material a or least in to sits continuing significant we'll monitor loss it to over I'm

Operator

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

MatthewClark

on the just growth. quarter. core first, Nice here this step-up loan Maybe

the X% I about think Alta, X% ex ex for to in year? do -- well, too. How calls, you PPP, feel you talked prior that ex obviously, about range

RandyChesler

off a the have XXXX balance because rates or pretty "Hey, liquidity. we're The seeing headwind a keep lot a we're year And at of of -- X% lot I strong we fair very the I it can on interest amount had We're first very of full getting a that on can a cash keep bank lot on said, much that. keep they're low with very liquidity that. We and is happy loan." at and seeing of just very, right We're We're excess payoffs just looking saying, on sheet. second -- basis their a Yes. I quarter. pay sticking basis, so a quarter. companies Like this they're that. in to We

with the positive end see just going quarter So caution excess that that probably provides of Matthew, higher we're still the to But the payoff and given of bit liquidity quarter. at little probably more on the businesses, trends just the pandemic government accelerate range, tail going strength this it's we and a very And next given into liquidity. if also to this trend.

MatthewClark

you for financing? segments hotels PPP. and of real warehouse you stuff, give incremental that growth is you're back like this more right I sense way, of on gotten Okay. couple you like estate looked the restaurants? the think projects? then Can of the a behind might us led of ex type the been have And higher-risk that it Have put Or commercial types quarter C&I into a and industrial projects type kind of

RandyChesler

you the the the But I'm -- ask the to to maybe yield. details Tom debt the Tom both we type yields. we that. color on some way quality question, it's risk and duration business. it's quality going quality can strategy. get duration loans. more think -- are not taking nor to Tom, sheet loans stretching on give can keeping I And But balance We're answer We're give good whole loans. a yield debt are and a out on to going on But of to the us -- you securities both on we taking and the on on higher get are the securities,

TomDolan

and all. Sure. We're in -- it the hotels side growth quite where of prices absorption on industrial Yes, projects that to more The well. as seeing. in-migration really the the seeing is warehouse, restaurants, we're in existing with predominantly COVID-sensitive allowing like high. demand that on of not kind at We're Matthew. well, high-risk been any multifamily has markets not average quite growth's more the industry production been some mirrors the the has participate of us and rates Multifamily seeing favorable our home as also become are where And especially some in popular. or

helped with continue. So I there. certainly some buying had say, businesses that's industrial, C&I. some I some We've think equipment that this would will last quarter, then mostly And looking forward, some us expansion

as multifamily In growth addition, some we'll well. see

MatthewClark

Okay. on reserve. Great. And just then the

kind calls, you be of X, coverage and it, on below you are about in whether assumptions XXX. on underlying might updated dip your better talked were ratio prior to around might thoughts January not stabilizing they able that I than or knowing the think What that be XXXX?

RandyChesler

we we've we where -- what economic I It's don't Yes. portfolio and change quarter on given current conditions from set know we reserve the level anticipate really this the the are any today. quality. mean

either barring reserve change at we'll in from level. So material any probably we're forward, where stay I a going think

MatthewClark

just And the that on sold number on Okay. generated margin? a last so give gain-on-sale Can then loans you mortgage for we that amount one me, us into back of can gain sale. just the

RandyChesler

Yes.

sold. -- on you depending it at sold, on were loans I'll just number But X% on a to differently, at measure quarter? gain. lock how loans So we the People it for so about loans whether give you just look based it's

MatthewClark

you you And sold? the that have do volume curious. Okay. I'm just

RandyChesler

million. $XXX About

Operator

from from KBW. question Jackie next Bohlen Your comes

JackieBohlen

you to employment not some today Alta ahead to you the positions and would of expect the -- of wanted see to have you questions. I just the being once. you full be what transaction? But to where into first couple give dig sit one versus them open try that at Randy, of all I'll a

RandyChesler

Yes.

We positions. to a of a new and open -- across markets lot lot has most hiring difficult our have positions, been fill of

around maybe have resumes. or bringing those a folks open, market, so, on. it's And received bit and X positions So somewhere XX% X little X we we're -- just lagging, more, we've

it's -- there you've just slow. So I'm it. sure heard

people difficult. getting the Just is to into back workforce come

JackieBohlen

deal Okay. I'm X-part more of type open Number about what question they're positions? be whether expansion they? obviously when be kind positions bringing to organization here. realizing middle-management-type that those are who great think get some a able fill And to new a potentially but or for will others also the And And I of you, positions, trying Alta entry-level for on to positions folks is displaced? those one, then might

RandyChesler

The -- very Yes. yes, them, in very, out And having with we to the be just And with openings will expect the Alta fit We really operating really probably change. your and for any staff -- The of that would with certainly, people, But folks a what -- but are of our process we're markets the with really those doing as has no know, the there to be are we staff some there we maybe keep question the spread to model, folks -- think positions strong is our -- of continue organization. them in organization. doing. been branches, keep there they're good in be there's change. is the still believe of people. across them great leadership most buy Alta, discussions have won't you the people. most we they're the doing. want the at good We've there good At the of level expect what doing folks some more continue got team. we And impressed of many with quality banks

aspect So of very we're that about transaction. the excited

JackieBohlen

time about, challenges that you people work XQ just million as Okay. And is spoke that you over XQ, see you immediate between in that the bringing to positions? on is that Ron, $XXX that fair wondering to it to layer hire, fill to it could it then that based number wouldn't take bump some up and assume

RonCopher

take up will But will start Jackie, people -- to some time. third. second show in that it will the the have we quarter in It hired

say you open where been And I'm that -- always additional for that's the So looking reported to able it's -- -- Randy not I the hiring. positions. It'll from coming when have to we're we talent. hire

that certainly have the some been quarter able we and So in third up to of second the fill more will during them, then. ramp quarter,

RandyChesler

to XX%. Yes. not open closer the Jackie, just positions, on it's to X%, actually that, the back

So take it's you divisions, across about total opening. closer we're the -- XX right X% if to all now

Operator

from Your Securities. from the next question comes line Brandon King of

BrandonKing

Randy, in-migration you or of So year are I the get remarks, prepared your play slowing you seeing trends dynamic know can in-migration even with how think the over your an to in I sustainable years you this in acceleration? any and just wanted also, footprint, come? sense I And long the of to next to mentioned know out your wanted

RandyChesler

seen Talking amount all letup continues, fair a in also of not to buying in-migration, the it divisions, the is market. have the homes. in lending we current outside a both And people our construction

in getting they're -- the a planting building. market So foot and

So that changed at really all. hasn't

a bit thought off we sure. quarter, and we we just terms In of but little really the actually to for just but a that of actually unabated second it wane more tailing bit continued know expect don't a in of it -- markets trend the we'd unchanged. of normalize, as see I sustainability,

as in-migration, we the country, markets the people it still things just tail bit, off will in at a little point. expect if this So the maybe unknown but across it's would normalize all

BrandonKing

wondering, Okay. from in-migration coming that And also is existing again. kind new was of customer Or coming on some I this strong that is was in deposit customers? And trade, acquisitions? growth from core it of

RandyChesler

Really just before pandemic, in-migration. it I we point both. accelerated good just And the significantly. should Yes. out, Pandemic were experiencing coming from

it's little, matter average. just to still a degree. So even be above of tails U.S. It's going the it a if off

liquidity. with that's customers of new the deposits, the terms yes, In both existing excess

and then talked in-migration. with is up more we're part so picked PPP, customers X,XXX And of with them that I customers, the deposits. new we also about that New the getting coming new this as business loan

with bank reputation as of rated -- we're in lot great the a of the market in market our in bank the bigger best markets. markets in many our a the So

as And so into who the we're should bank name people then Many our I asked, times, with?" the come new "Well, comes up. naturally attracting market and

And picking of that business. a good up so we're amount

BrandonKing

of more the gain-on-sale residential compressed forward? the on last Okay. sheet And know have still quarters. margins the just balance loans Is over I plan going hold lastly, to couple

RandyChesler

Well, that's dynamic a on demand. the

first year. The remain a salable bit bit, less. quite second quarter, most had selling for loans we will Possibly a there, this lot going Probably be see a portfolio our quarter grow part activity creating of to this and for stable those. runoff the but most of on

BrandonKing

And gain compression sale Okay. any are Or less margins? seeing still you on on that is --

RandyChesler

see to bit Starting of pressure a little there.

quarter see so starting price little just We in that -- competition we'll occur we some the going -- there's and to pressure see around little quarter. to X%. that the could more out how could be So there. in ended a probably There's markets, pans a

Operator

next from comes Coffey line [Operator Tim from Janney. of Instructions] the Your question

TimCoffey

that to the and migration info trends. Do the previous mortgage locks and in this quarter relates on point have you time? how on follow-up of the housing quarter-to-date kind Just at

RandyChesler

Yes.

locks are strong. pretty So still

So for quarter, let's the see.

book down million reduced accounting the you we -- gains in we the in from loan. that's as quarter. the we when saw you the part That about think we in locked was lock I quarter. gain last when of what because, the -- this gain And the lock $XXX know, from

TimCoffey

is Right. so pace how quarter locks And looking the the far? of this

RandyChesler

down. They're

a coming quarter. this coming seeing next or but we we're still stronger reduction but into the levels, there quarter pre-pandemic into above still little than we're expected So

TimCoffey

Sure.

was Okay. footprint? as all with the Were quarter? mortgage you to it down the the seeing line I MBA it in-migration know much was in that in -- surprised you're tracking you're but survey your was as with

RandyChesler

supply. Yes. and more like really more A because said, we No, of I our TBD. -- see locks fair it's

and house they're itself. a present locking they quickly does if move because pre-qual getting So to want a

So priced are in-migration purchased. being yes, lasting reasonably of couple weeks But the continues. to a and are properties, they're the market,

is -- low. there's the very So of inventory homes down

right that's our biggest So pressure now. point

TimCoffey

Sure.

longer stays you than don't on-balance liquidity? levers and continue other expect, on on of it have should liquidity. for Say, you credit, guys pull Okay. stretch and some deposits, given grow then are absorb you it And that do to what you there how to just sheet good to growing the

RonCopher

Yes. in as the reiterate. are Tim, it I'll loan would mentioned. the strongly stable we meantime, go Randy those just had loans. But prefer very sticky portfolio. Obviously, into deposits,

So that's rate very for higher the noninterest-bearing, steepen continue we'll income. a interest differently, poised net to on with risk rates. great interest the would yield way again. the growing Said as start to Especially mitigate focus to we're curve

we're Fed, fight the -- and We're the to market. that. going So don't on build continue take fight the relationships to don't

Operator

to questions. there further this comments. At no back it I the are time, like would for to turn speakers any further

Randy Chesler

right. we of in in, Well, everybody lot you the know dialing summer. a the -- a we appreciate All We Friday. activities again, on get of middle

So we a really appreciate you again. dialing in. We hope everybody has terrific you weekend. Thank

Operator

today's conference. concludes you. This Thank

may You now disconnect.

Randy Chesler	President and CEO
Ron Copher	Chief Financial Officer
Angela Dose	Chief Accounting Officer
Byron Pollan	Treasurer
Tom Dolan	Chief Credit Administrator
Don Chery	Chief Administrative Officer
Jeff Rulis	D.A. Davidson
Matthew Clark	Piper Sandler
Jackie Bohlen	KBW
Tim Coffey	Janney
Brandon King	Truist

Glacier Bancorp (GBCI) 23 Jul 212021 Q2 Earnings call transcript