Earnings call transcript Q1 2023

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Operator

Good day and thank you for standing by. Welcome to the Glacier Bancorp First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there'll be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to conference like speaker to now Mr. today, would hand over the your I and Glacier CEO President Chesler, Randy of Bancorp.

You may begin.

Randy Chesler

Tom All us here and all is Pollan, Angela Administrator. right, good morning, Administrative Chery, Chief Officer; Byron Dose, our and Credit Catherine, and thank Financial Officer; thank Ron Officer; our Copher, for today. Dolan, Kalispell in joining me Chief With this morning our our Chief Accounting you, Don you Treasurer; Chief

the release discussion forward-looking review that is encourage like subject Page same out I'd to to the today considerations XX to point you section. this of and on found our press we

report and lot excellent an Glacier managing failure our Silicon the weeks, team through Overall, about job The model environment changing believe well. the we few last unique to month the industry. past Signature business of Valley over weathered the concerns and very created the a Bank did banking of rapidly pleased Bank storm I'm

relationship based Our proved extremely approach be banking local stable. to community to

operating banking the from system stress. during and eight further under provided Our XX outside states Western and started, when bank insulation the across locations in events was the which markets. distinct Deposits XXX March, our period unfolding grew most when crisis was the separate was brands the

know many were trust most and they with resolved safety concerned banker of about their their the While who customers it deposits, talking about of concerns.

balance degree granularity. high deposit of and base a has Our

metro about markets, states, We an with XX,XXX. rural five the average balance are of us over spread of in and relationships over XX% with have balance an XX% over with retail XX% accounts XXX,XXX XXX,XXX accounts with years. accounts eight commercial XX,XXX, average over markets These in of out

than us XX to our liquidity these provide most Our this increase and strong ready cash to if we over an abundance we confirmed enough quarter with channels. used we liquidity. liquidity cash tested $X caution, billion, And of ability of channels, their on of more to to with status Out so hand billion available operational multiple close had through available is needed.

amount a billion. significant have only don't about We totaling uninsured of $X.X XX%, deposits,

you collateralized it's with from are to number, investments this closer funds XX%. remove If high public that quality

than balances more XXX% still minimum in capital exceed ready cover excess have of liquidity of We to and enough requirements. these regulatory

shorter investment to Our portfolio and generate is structured cash duration be flow. to in

to the held exceed regulatory both reduce result, portfolio to this As enough million in for our which to and And finance growth. absorbed tax a wanted expected portfolios the cash a current held-for-sale sell investment be totaling on would laws investments borrowing, produces the event unrealized capital $XXX still lending after these we by minimums. could

XX level are points is Our capital basis XX listed and in credit. in banks our record real proxy. to been with points little capital Credit There's XX.XX%. from than greater continues in We the some the to of CETX basis about at quarter strong estate XXX peer prior larger believe cities. deteriorating of we and growing this commercial average concern exposure primarily see industry, than signs more the levels increasing the perform levels of

estate average Our an $XXX,XXX. loan properties with amount real city the commercial centers is of outside primarily comprised of portfolio of small

the we the U.S. the are impacting While we the about company. have among number of current are the presence optimistic strongest a position markets headwinds a in The economies there of banking industry, which are in

of portfolio, high this quality now We sensitive, loan current a balance have take ample a more that sheet model, bias liquidity a primed and and environment. M&A very to that banking proven being towards expertise a is liability has advantage

$XX.XX me. common include the share, or $X.X at – X% the during Tangible excuse or stockholders’ share quarter the quarter. the quarter highlights specific billion, increased for first value increased from the of [indiscernible] X% $X.XX current million or per of share quarter current $XX.X prior book of equity per end Some common

yield in Interest deposits prior increased XX first X% decreased quarter. X% million of portfolio just agreements The XX% basis $XXX at and $XXX annualized current increased million the income to and or during X% quarter. over or during over compared of The prior $XX.X $XXX Total the loan year the current million prior quarter. of the $XXX the of from basis during quarter points, or quarter retail X.XX%, quarter. points $XX.X million current the or billion, first quarter the the year $X.X repurchase end million quarter of and increased increased loan or increased the for quarter billion and $XX.X March the current million increased X% XX current prior

the yields liquidity other quarter. $XX.X for capacity Bank Federal production from were up last X.XX%, securities, New sources. Home points the and of XX Reserve brokered facilities, quarter cash, basis deposits, unpledged Federal the Loan including from billion Available and borrowing

as quarter year to assets continued percentage to a as percentage charge-offs X.XX% was the XX% was Net quality points first compared X.XX – a quarter. and the and basis assets the Non-performing point. record levels. in subsidiary in to current improve quarter or of Credit in basis loans one of current prior

quarterly in of consecutive and deposit declared XX dividend declared has the liabilities the XX end and company XX% a at dividend compared XX% deposits funding quarter. at bearing XXX funding of the the ended $X.XX were core XX% eight Noninterest The almost basis the quarterly quarter, a billion, of to dividends deposits points increased total prior basis prior Core in quarter. quarter share $XX times. per company of in quarter points of the versus cost

XXXX quarters forward cash the second our outflow the our portfolio. by quarter them cost to to some to and more from going to with second for primarily the deposits of will we the and plan retain and anticipate expect And growth followed borrowings quarterly throughout trends perform to slowly increase. growth historic continue deposits by and third investment with still attract in and fourth growth for using some the year, Competition decline consistent the quarter. year We in fund flow

our serve first business focus another continue The dynamic their job and So deliver market confident customers, Despite again markets once excellent in they did western to quarter. results. the unique we and the remain shareholders, on team Glacier strong kept in model we turmoil, the to communities.

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

Operator

question David [Operator you. Instructions] James. with Our Feaster from Thank first Raymond comes

Your open. line is

David Feaster

good Hey, everybody. morning,

Randy Chesler

David. Good morning,

David Feaster

higher could isolated about Are the was to deposit this outflows so, that are quarter, how the again of debt fallout we to of talking case much, start primarily some the versus side, failures? or some is some just quarter versus or recent retail purchases or the how maybe looking from clients capital if this just could on – actual from flow you bank quarter? flows Maybe seasonality paying borrowers know for XXX rates the last talk down normal clients the drivers about the higher costs much of just I top

Randy Chesler

Sure. Yes.

spent time So a outflows. lot looking deposits inflows lot obviously, at there. and studying and Byron of of we’ve a analysis has done

So some your walk Byron kind of I’m your to of to it to going over questions. responding you through to hand

ahead. go Byron, So,

Byron Pollan

Appreciate David. the question. Sure,

of flow, funding, Those they are retail one this not They These we a So deposit retail talk we be collateralized wholesale accounts flows, deposit I’ll our repo core including when repo are about I’ll at discussion. things are our include the core our look relationships. accounts. that customers. repo, when in are

retail I of when So this a account, relationship be I’ll discussion. think core including repo in

the this improvement January, million. I’ll So over the March. was a roughly break declined month in decline track in what core give And between is in quarter. February, down sense $XXX deposits our a and That I’ll the of quarter, happened and tremendous and kind the fourth what repo you for do

fourth that in than rate in was continuation became those was proactive our end more we pricing This and of XX% saw retention $XXX toward what kind purely in of outflow So happened We balances. quarter. of million adjust driven. strategies of defending did January the and much This a the more January.

balances we volatility happened Valley core face repo deposits that grew. and in in March, – the so that, actually and with noise March our and the did all balances of noise Bank. our was Silicon deposit all in the in February. was And once that month And that from that repo of in stabilized And

So stabilizing February divisions of in environment. and difficult did very a a deposits fantastic job in actually our growing deposits

the show of going up. see up cost They’re on that you’ll impact deposits. of and rise our in Now, clearly the

the So, in quarter. first typical March. drivers to some we say that in in February the in that would and to stop a normal grew accelerated of We do I seasonality some see some by – we was actually put of see outflow kind for rate January. month that’s did us

hopefully So addresses question. your that

David Feaster

to persist in into into trend that’s you core very I grow? second what seen here have balances early deposit the early second helpful. that you quarter? Just no, is, read seen guess, continue curious quarter? the Yes, Have the early

Byron Pollan

Very related typical flows. tax

had outflows little So then to couple bit tax related and some April, increase a weeks of payment. of first

So nothing see April. outside from ordinary we the typically in what

David Feaster

the do do sounds I just core little timing balances sheet out maybe at you here? the the you about kind think And a from plays April’s, more deposit mean, do and the are So of of you like tax of think of you how ultimately, pay how the course But trough? expect, maybe how do seasonal you outflows borrowings? deposit balance issues. I the year? bit the guess would about it Or downs It think a through trajectory think from of some

Byron Pollan

right trough a is I Yes, would, good now. word

I think right. that’s

we’ll normal I for sets Fall of here good. And the on strong revert Summertime some some see is flows. our think we to winter really as then is from pretty still back outflows. in, deposit probably us historic front.

kind anticipate influencing So factors I balance. or look of I to of some those would seasonal our deposit would

at range. grow typical the I to X% headwinds, for us of you given somewhere put a at range end low would look X%, the in year where that we of If us

and I my And a number now potentially to had on be so put would X% it the we between of end the grow estimation. year, could if

David Feaster

thinking built earnest balance X% come do liquidity early, until so the dynamics, way book, probably or about and we start growth, in maintaining you about of some then, other don’t the that How the really side, predominantly late that up Is growth, the think excess we some some just the XXXX about, just see of maybe securities probably And about of the really thinking and liquidity. year. think flows sheet borrowings in Okay. down just about from to deposit loan like it? again, talking cash kind obviously, don’t funding the right were with

Byron Pollan

so. think I

As caution. out of of we built mentioned, Randy cash abundance an a balance

settle I starting things to think down. are

securities of And out, our portfolio continuing of this you some release down us You some funding. the cash could the see pointed off that cash wholesale flow pay as would fund help growth. to us of loan that then,

So through just but this a away little I maybe just wholesale we see bit, some then release if dent chipping the could from in it’s there could put a that funding, of of rest the year. cash our

David Feaster

could right pace? securities the the talked And cash million. Is us about think $XXX you still Okay. we remind flows, that of I

Byron Pollan

still I year. of number comfortable for Yes, for think I’m with rest quarterly the the that

David Feaster

Okay. Thanks, everybody.

Operator

One you. our next Thank question. moment for

Our from Kelly Motta comes KBW. question from next

Your line is open.

Kelly Motta

good morning. Hi, Thanks for question. the

Randy Chesler

Kelly. Good morning,

Kelly Motta

is spinning my kind model sorry, Okay, me. on of

some got quarter. good this guys loan You growth

So slowdown decent returns you’re seeing. talk here this risk areas with best even your was from pretty pipeline you What’s adjusted been seeing about and the stage? we’ve at which can the

Randy Chesler

closely. well, area, looking very at That’s time of as studied spent another we a it and lot Tom has Sure.

question going to I’m growth. ask cover your So to Tom on

Tom Dolan

and strength I Kelly, borrowers a the that to we we And the to balance than I to quarter Both strong in Yes, that’s say I sheets addition markets that, a in expect officers was banks we of quarters. continue think though state certainly operate would continuing on are we credit to would to our continue reflective coming slow And provision our and be that stronger [ph] footprint. continued cautious. customers I our expected. through little that – our think the see. growth say first would in

year, we’re the on end the of low for digit say mid-single would I the range. probably So

good part provides second areas seen show been the Multi-family a that the a little And we’re though of us to us of segment the pricing. and then the an for good portfolio bit. question some now. some that’s has structures. warehouse lot strength. in providing the prime especially growth Certainly half we’ve industrial last drivers And in and year some a very your as last, the of a down And healthy terms some return, of of been probably good even a has as getting well, that where slow certainly operating are lines very agriculture based continues

Kelly Motta

How stellar of as reserve remarks are? should we watching of should and we Thanks. feel the appreciate where basis and the you’re to credit all be portfolio in as of ahead? expecting What Credit be you to XXX and prepared granularity I you well continues the seeing. look normalization what from kind And we be color the about here? point do anything the in terms year with

Tom Dolan

in Barring significant portfolio changes any changes any don’t forecast the change really or economic the asset or Sure. in in mix changes – quality, of in a percent as loans. model expect much I

keep we evaluated We it. quarter. close a So, eye on every

closely. model haven’t we’ve yet. as to well there deterioration really got We that. material We’re in watching the And seen the overlays certainly, reflect forecast some

much of And so, in now, I the expect way change. as of don’t

Kelly Motta

you provide commentary has the banking going do it it you additional about still as it. the headwinds then, – your in starting pretty somewhat right And Can prepared industry potential Got color or motivate some you had to some but constructive. slow? is activity seems stands expect what’s environment and the – on M&A, in remarks, now

Randy Chesler

their Sure, difficult certain see. to companies. yes, It things But wait But and slow kind on And we be need Couple these position some now, think it’ll be people’s right, feel for that that to a course of is you’re a right will we of Kelly. good time good going it’s headwinds you and make experience a sellers us. time. decisions with to and that no, hold better very to M&A our probably buyers strategy, for long it’s and for our on in will of weigh how little and feel like I absolutely happen.

important ability I of the expense. of think will that as scale will in be with these bring together headwinds the some folks industry

strengths a then think headwinds present regulatory good areas some expense in play and and I and little And our opportunities cost. for more those Will cost, deposit very so to us.

M&A And business. so, we’re for open

a feel some be some industry. good like in a having conversations during positive to way we where some income a there’s period and are continue headwinds certainly good and We that for – us very the growth will

Kelly Motta

question Thanks. me. Maybe last for

that securities margin, commentary of additional will have apologize missed from expansion we X.XX% and in and the funding On But here? downward your and you’re I quarters? at off to some kind of to as should kind the it. the I Or pressures these be flows, going some margin this next couple pressure if maybe thinking fund trough continue of

Randy Chesler

will that’s where Yes. I Sure. to mean, tied that margin, obviously see around And little we that really the and Byron money margin. update more you color the a going. give detail cost or

Byron Pollan

Sure, Kelly.

the March. saw, guide look in quarter the in give would to you came the margin can you be the X.XX% on first at our from at margin As that best quarter for here I

If you just X.XX%. within the isolate that margin March quarter, was

from here, that’s close think trough. And think stable. I Now going to the I to be would

end of in the the margin. to think in area you would terms we X% If net range, to year me interest full X.XX% on a pin would down I had somewhere

Kelly Motta

step all will appreciate color. I the back. Right. I

Operator

Thank One next our question. for you. moment

Rulis next question Our from from comes D.A. Jeff Davidson.

open. is line Your

Jeff Rulis

Thanks. Good morning.

Randy Chesler

Good Jeff. morning,

Jeff Rulis

on one I last to I guess, understand that occurs wanted sources. the with of off it’s assumption the the of noncore near margin a funding what jump comment X%.

Just of sources wean the terms those course of year? the how the off backdrop of in over what you much is

Byron Pollan

Sure.

we course that this we’ll think balances, on funding put of have terms for of But it bring wholesale do don’t number at modest lot our that point. the So would of to news funding some BTFP it. for down a The with you estimate over I our an I is the is in wholesale the cost of the rest think year that decline in participation year. year. of locked essentially a wholesale in and the the now end program, funding a good in be between the

So wholesale point does remain Fed left, on. rates fairly our additional the regardless costs have hike of this if funding some from steady should

Jeff Rulis

strategy, it abundance to an see in need maybe try about it got not to what talked you’ve to caution. but to just all of, of for clear, the that to kind you operating sense that And Okay. understand is just you’ve

time the to real the see have really news of non reactionary balances day. your You of what sort deposit done,

to strength, to trying lean begin hesitation is see be you kind would you get know, amongst the what to deposit just run So a what as ratio that it you – for up of a into outflows, loan sense franchise ramping costs. peers, see

go to those trying prop maybe what quicker wholesale to to for you need a Just of see get to borrowings a maybe the up bit? top line sense off do

Byron Pollan

going ratio. order way could about funding of with XXs clearly requirements the and there. I – loan to We’ll funding those look deposit zone. opportunities lending it’s into just see the Back for what talked in opportunities present. loan internally in We’ve regard us up. us really to have deposit and on lending to the our end high And see comfort like ratio, there what that’ll from get the to the determine strategy to

Randy Chesler

clear on going driver of will of the that's be think that. a to in in moving of how our a cash, deposits. I about terms the for whistle know talked of well when just determinant liquidity bigger And to And of historic that. as the We much the end lower range balance competition there’s be been you Jeff, deposit a as of flows more of big some form view sheet the blows, seeing target. they Yes, to be that's going return lot all

second we're actually think about that good feeling so, quarter. And the I

really go, events other by think on change flows. So I funding the answer deposit where that. balances driven question your we'll see how – to going But that any to if be that that the there's wholesale external do

Jeff Rulis

Okay.

Thanks. Okay.

please, growth course just that keeping the release expense in topic, to but that the inflation wanted backdrop the the through like, kind for over to managed. the year run of rate, get sounds one for would expectations expense QX, of management other you a Expectations the helpful. – given Just seasonal hop be

Ron Copher

the Ron. Yes, appreciate this question. is We

the that I and why XXX. to our I'll lower quarter credit So XXX we guide it give to, divisions and the fourth XXX, the coming to came expecting in it backdrop new call was towards gave of to want give particularly. be higher but you out guidance,

quarter will the quarters million guide million. XXX remaining me components be year, expense. non-interest for the to XXX on current the of And let So focus this of

the compensation biggest So is our XX% it. component, of

on FTE then when that release, the you at And to look And you the FTE we're our was earnings ago, X can XX. flat. year of see Page our compared down

And is so reflects better reflects are realizing, levels getting the Again, doing from come over efficiencies, with the time staffing what we with we're we year-over-year as The do same operational less, it that less. XX. platform. efficiencies period, down our has that technology more really can headcount everybody

They're So want I Again, right no that a think the good making primary comment to the divisions our expense, just non-interest very handle. the EBIT decisions market. came on us. regulatory Again, compensation being have of from are for their the assessments. I very, driver

and about very expenses, across the just only uniform. it's then it's certainly so feel up good pretty expense, non-interest our while very, The because from in FDIC still were inflationary caught well. excluding the other there. I'm as banks, where lastly, I XX%, various mean, the a is and guide it we we're That's accounts XXX to of that at XXX. all And expenses, we're controlling for leaving X% pretty M&A, that has expense while pressures, I really good the for categories, so that seeing say so adjusted flat, that I

Jeff Rulis

thank Okay, you.

Ron Copher

Sure.

Operator

moment One you. for next question. Thank our

question Truist King Our comes Brandon from with Securities. next

is Your line open.

Brandon King

Hey, good morning.

Randy Chesler

morning, Good Brandon.

Brandon King

a deposit strategically? costs is are know and of not far just being give get optically, process tapping instead Could always the case, peers thought just pricing better than of of what kind of you I there lower aggressive your just much higher deposits funding historically us thinking the morning. but your core around as and been wanted wholesale sense more thought cost that's as Good process to

Randy Chesler

a step can memory to think give want grew. competing for guess I terms rates, had and my to was the some to Byron commentary Byron's and we of And thoughts zero I then it, may Sure. extent I just low context, decade the if to to what we there stabilized back to in and so a to went a January said be and deposit through you muscle little add that's developed saw once some we fourth week actually enough and deposits. in quarter of within that in

simple for as keep been we're to in them shifted as and our deposits I It So relationships. and think mode retain now environment. had I think operating pretty Brandon squarely decade quickly and We with in a the a is and defend one of out that.

Brandon King

And was spot Okay. share you care the what of at to quarter? would end deposit rate the the

Ron Copher

average the rate for of I basis can XX give you points. month March the was

Brandon King

I almost Okay. been from here prevalent. and know about growing home consternation question, And kind from ending work of of final trend as there's the kind being not

how trends could So sense And based and just footprint? any migration trends there's what increases in of the there the especially last there if us you years over on the an of performed also in has a just update of couple post-pandemic? off give are notable housing your

Randy Chesler

to people a still that not number have return see return And see markets. work, think in staying work. to put. some I down, move of we continue to slowed but decided we it's to folks the made continuing. across all It's The migration our the Yes,

have any pretty in almost not Prices material We held have our of shortage kind We all outflow. across markets. housing seen stable. still have

we to work disruption the those dynamics. So bigger not work of lot there see has return materially don't really of kind a despite – changed

Brandon King

questions. my taking for Thanks Okay.

Randy Chesler

Welcome.

Operator

from Thank a we have question you. Terrell Andrew from And Stephens.

line is Your open.

Andrew Terrell

morning. good Hey,

Randy Chesler

Good morning, Andrew.

Andrew Terrell

and around well, but deposit performed like all color past, I get really in deposits the I maybe maybe I on that could the a Thanks XX% kind total through expectation. from sense of deposit the the I wanted expectations. pricing know around beta the you there. it just helpful. questions. think to all cycle, and around we've the kind appreciate strategy felt beta the talked of on as It's I for just taking Byron, If start margin

through sense just pricing were cycle a get recently, take just come hoping you of or if deposit XX% the still whether that? there's was that you chance made thought above betas I could a the kind the in total still you of changes given for XX% expectation if

Randy Chesler

Sure. total that's good We rates, It Reserve happens deposits. We're the still that for if think where see for balances. that I from still higher retain XX% to a using depends estimate. clearly XX% and through deposit cycle what push a here really beta think through is what of the on scenario, we Federal kind longer, we'll have to beta

to If beta you and half could maintain scenario believe begins towards this to market think and expectations back XX% Fed we that's of hold the cut year, I the number. where that a

it So using still number in the we're what what we're here. that But estimate. from our XX% does depends Fed really on using,

Andrew Terrell

Yes.

bias rate think, mentioned point on Okay. sensitive, Randy, the they into the And might cuts? contemplate and that to cuts starting this early could next you maybe this around think balance like just I as on prepared out how baked bit the sheet later margin late when year, point start we have following then a do maybe know there's that, lot in there's maybe we of finer I put parts, but look as out year, response liability and a we up year, of obviously moving just but the you in of look of forward curve, being some remarks a

Randy Chesler

liability well we neutral. it's about shocks. XX at things the with our sensitive. the did the talk just do sensitive, we models March year-end, for model of think will that cuts, when one and were make When rate an margin modestly our with to We adjustment rate ran fairly we I liability

XX% again, our guide, in the lot good up kind case, but that I a deposit has had base. used so the still And have our we deposit of capacity been do that is of in a recognize think base lag we

XXX XXX, to here, And I if talking be more will we're costs so about those from up deposit think our hikes. up sensitive

dial those the overall sensitivity we're so in shocks, sensitive did up talking shock beta we our creating about scenarios, And result. when liability

Andrew Terrell

Yes.

that Okay. beta Makes to does well? clarify, sense. repo the And include that does customer total XX% just as deposits the expectation,

Ron Copher

I No, excludes the that's clarification. you. total repo and deposit Thank account. costs appreciate the

Andrew Terrell

and I the and And could yield, Thanks. production rate two tax quick if average just it. average or expectations loan on forward? quarter, weighted ask new you then – the modeling moving then the also the the kind related questions. Got have of this Do incremental loan more weighted yields, loan

Randy Chesler

the for QX, was Yes, Andrew, it X.XX. on production rates

Ron Copher

And then Andrew, here. Ron

So on I the was quarter, this rate I this tax know would XX%, expecting would but I XX%. use build, low to use it

Andrew Terrell

Very guys for the questions. Okay. you Thank good. taking

Randy Chesler

welcome. You're

Operator

you. One moment for Thank question.

Co. with Matthew comes Clark from Piper question Our & Sandler

Your line is open.

Matthew Clark

morning everyone. Hey, good

Randy Chesler

Good morning.

Matthew Clark

XX%, when Just on expenses ratio maybe that range overall retain deposits given feel compete the some not culturally more pay environment? with of or there seem that little I or be think you this of be going to of realistic environments – is and deposits do just this kind going need it you up rate year, the to but efficiency, to kind about given like, XX%, in that we're new like mean, just might the in just on a change, have targeted efficiency longer term doesn't forward

Randy Chesler

some But way right right I comments. the looking you're you're Yes, have now. absolutely at it

are and number I think a we've the about spoken there them.

efficiency through of have lot We technology a we're of number that with. spending time initiatives our platforms a

that's add ability want though that anything? XX% do next going is think And some beneficial. your tools think outlook in that get have there. get I which our to year. That's this still And year. range, to a we're really back to probably on goal. We question that into for really to that's dialing did be you I XX%, Ron,

Ron Copher

Byron rate the do to component, it. rate we cuts the income. sensitive this be on, or more will get hikes, the it saying interest net impactful bigger get because was was depends Well, quarter the component do further we

be it's driven And doing it'll yes, largely that. ratio. great elevated so by year, this the while efficiency the we're non-interest expense, on But

Matthew Clark

Can And still shifting uncertainty insulated, reserve gears probably on than term. then what just little just more exposure. I there exposure? longer and Okay. how think to so to quantify the a guys most and a in highlight around like rural some does associated office are rural you lot characteristics that any you'd is office your know more markets but exposure you I

Tom Dolan

Total scattered there's Yes, small, exposures is district. as business that's running that's about downtown X.X% Tom. of Matthew, portfolio average states Randy immaterial exposure to across eight the it’s and the mentioned, the total but XXX,XXX all quite

the downtown the in of, impact the unknown office the goes you I some So term of valuations of forward? long say in it will locating But mentioned underwriting terms that requirement an office to be sideways, addition larger or the years on I additional book, kind these value cost with think business service on, what's theory, ago is is, that's this districts. the I've think what and implemented ratio. cascading lesser I debt coverage That'll mentioned effect impact, to, longer four going what long-term If yet about be and – question before, that's we answered.

that XX%. also for We typically office, threshold and yield, to meaning office, by that underwrite and varies for in debt class, it asset but geography minimum

through that as coming came rates cap down this dictated equity was cycle, purchases. into what so cash And more

book market So insulated below is well in point, disruption. XX%. your to fairly I to Average that think it's LTV

on type some it's We now, Right city had mentioned, have. pretty center outperforming eye far of positive disruptions book. I thus we effect And monitoring keep that a And rest office it. the our of a this as keep on theory the we offices close it. of in

dynamic the unique past over it's been quarters. few a So

Matthew Clark

Okay. Great. Thank you.

Operator

our And next Kelly from is a from KBW. Motta question follow-up you. Thank

is Your line open.

Kelly Motta

asked me the letting answered queue, you appreciate questions are back at I but in this and point. Hi, my

Operator

like back no to Thank other call I'm the for management closing queue. remarks. in you. And to questions any I'd the showing turn

Randy Chesler

everybody great want Catherine, great a you you. a thank We We our for to weekend. very dialing call again today. hope Friday thank has everyone and much. into Thank right, All

Operator

This you conference concludes participating. call. today's for Thank

You disconnect. may now

Glacier Bancorp (GBCI) 21 Apr 232023 Q1 Earnings call transcript