GBCI - Earnings call transcript Q1 2024

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Operator

Thank you for standing by, and welcome to the Glacier Bancorp First Quarter Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Randy Chesler, President and Chief Executive Officer of Glacier Bancorp. Please go ahead, sir.

Randall Chesler

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

primarily to forward-looking Yesterday, release, out Page XX we on quarter time company's the XXXX. equivalent percentage purchase deposit regarding point since to as X an close a quarter today is first basis driven and of quarter net released approval X.XX% like starting in net expected. increase by was to Montana the in welcome encourage the discussion earning outpacing compared sooner the section. margin market. We is the our in increase the considerations result first press than assets a the the a The and review subject I'd that to we costs. we prior you of the quarter announcement and third this arrived our same interest loan This the was an and earnings margin after for on of experienced very of our tax interest in of the increase branches a X.XX% yields, of

and quarter. rates quarter in million that loan We the XX of increased as believe interest income this environment compared basis from for quarter. and are XX increased was prior that yield the X.XX% entering basis we prior prior $XX.X the into appears points for prior year the XX% lower over higher quarter first trend quarter $X.X current the X% over in 'XX a million to year increased increased points X.XX%, the quarter longer The first $XXX our or It throughout Interest the will of and continue is 'XX. rates. for period million or and company good

and during the XX The loan was quarter. X% $XXX or Total increased X% prior of quarter $XX.X The the quarter year points increased quarter. which for or million Bank was core increased during X% current Loan portfolio since smallest of $X.X and the was the fourth which deposit Federal the during million quarter of through or of cash. basis million paid combination increased the first deposits $XX.X $XXX advances Bank billion XXXX. $XXX a of billion from the term X.XX%, funding Federal Home off Reserve increase billion The cost quarter,

or year the quarter Nonperforming the of from $XX quarter. quarter X% million million. net assets $XX.X current decrease was $XX.X million XX% decreased $XX.X a end quarter, million million prior for and income or of first the quarter XX% income or from prior at $XXX,XXX of $X.X Net prior from decreased the

Corporation the expense However, Wheatland loss to Deposit credit Federal expense million Insurance from the increased quarter and from of included current a acquisition acquisition-related related expense total Bank, special $XX.X the assessment. of

leading a core Bank, the of in parent assets with Washington bank Spokane, acquisition Eastern total conversion of million. Group, Financial of and the We Community completed community Wheatland headquartered $XXX

employees divisions an you excellent create the Wheatland on and As to Eastern bringing focusing one Wheatland and brand brand building other consolidated Bank Cascades and together Eastern state. The under Washington. has done remember, Washington the team customers division, may the North we X in been across our job have our combined,

to well-running I'm rare markets includes high-quality we franchise approvals and opportunity this divisional its transaction of Montana with purchase the July. close where in This already branches branch customers. and Bank of assumption announce of from In yesterday leadership regulatory fixed with deposits we is a Rocky loans to the too. received February, knowledge a owned that a loans, in agreement associated estate and Bank we the transaction pleased purchase purchase good very good announced branches and a and deposits, It division, to X expect including a branches. and Mountain real Heartland to employees, all assets have team X great

We expect and close these branches in to July. convert

dividend also per quarterly a dividends declared dividend has We The company declared increased quarterly $X.XX and a of has share. XXX times. the XX

makes And recognition. that now be banks. we're top XX Forbes ranked years retail be to Glacier in consecutive they the U.S. J.D. X Bank world's #X that and the Idaho also best satisfaction Montana, have we very in by And banking quarter, in pleased to announced it Power This as recognized this Washington. of achieved

that Jonathan, questions any to I remarks, have. may for open the ends now my and that line you would formal So analysts our like

Operator

[Operator Instructions] comes David question from Our the Feaster from of James. Raymond first line

David Feaster

on Maybe margin. just starting the

You able the about, quarter-over-quarter. like were margin higher to you talked -- drive core

you vocal just about talked remind the us benefits each calling the freight a rates expectations arise. do cut higher here. that do we're being remix. longer for was the environment for in pretty over then expected. stabilize stay asset been if think hoping of us trajectory through assuming makes I And help just for guess than You've margin earlier sense -- to positive, and higher about the given bottom earning this they year could do and of the the you And able which I environment. then we the longer And course it just

Byron Pollan

can touch of David. say, see to I This margin. quarter. did pleased all, first our margin grow I on in the first would that Byron. is very we're Sure,

than there mentioned, for growth year, the say Fed pushback a year, think whether the a is higher bit upside. a rate longer little good margin little of for but cuts cuts, Fed up environment would would in I sooner do the this better us. as throughout for with give the anticipated. We we cuts the later the do or fewer still not. say we if I are trends I that was And huge. you little in

some of gives acquisition branch our However, back. talked that that Randy about us

net-net, could would year full would same the of pretty does That's fewer margin So say, previous at year. coming and with place, $XXX we're in say can rate our end in through. say, expected this would in the that and and cuts I that the include see branch our much overall, the on guide. is a with caution benefit I low I would deposit of noted. acquisitions even margin deposit million, we noninterest-bearing I headwind if -- that, our is if you balances, would potential we that that I Randy some costs though, see migration. there If a noninterest-bearing comes that pressure outflow --

David Feaster

far, quarter second core the you that you quarter? of And quarter, stronger throughout the saw core thinking early about and into the read on on you're growth trends that how in Could how progressed just especially that just talk about kind on seasonally as NIB Absolutely. months? And the maybe just we deposit kind the so and of a staying enter and topic. deposits

Byron Pollan

Sure. would we perspective. if Yes. did organic outflow, that say, you Noninterest-bearing within from did Noninterest-bearing down the break did balances -- I core balances on a an quarter.

a boost happened noninterest-bearing the Again, All outflow with of March. balances. in Wheatland, by to million our brought of January, a That and of growth in February significant acquisition was slight balance $XXX they the in sheet. followed

to continue in additional think quarters. could we outflow future some see do I

year. we time do -- some seasonal For example, tax tax see outflows of this

of prior and see could as summer years so outflow deposits, very year, that's think consistent think months that well. something I terms little inflows which I seen we trends, with bit be in early fall. we second bit little get in we've April returning we far core in a the as see means of that's the a more we during of Overall, So do strong later do will could the towards outflow. And then seasonal in quarter.

of we see the see some to normal back getting overall year-to-year. that kind of I So seasonality

so ending, close the year where up and for 'XX, that's Wheatland -- organically where is think And the and of to ended we end close I end last of we'll coming of branches. terms where the the in acquisitions we a the growth I at from ended, Overall, that's think with year balance pretty to this see I us. positive

David Feaster

broadly, Okay. That's And just me. color. credit. helpful on really one remains benign. I maybe credit last for mean then Touching pretty

but aggressive on if and you one on it NPAs seeing, what could touch primarily like low, curious you're your thoughts that? just managers did stretch what I'm guys it's watching your delinquencies you're credit. what tick of sounds drove And thoughts credit. on up You closely then still are broadly, more credit book. more as credit are and you your on early-stage

Tom Dolan

primarily the geography said, any stress. quarter not second quarter resolution portfolio, industry, we're increase should showing and trends the some on More on have you that was seeing asset one relationship. transaction. specific that's broadly or this this any -- quarter Yes.like class We

for to portfolio rates. stress we the the still risk in we also trends, economic test yet. interest strong but and be not favorable, cracks portfolio our no So watching. management. continue results We credit material discipline continue in only just keep regularly Certainly, Those

David Feaster

what And so you're that with And sounds it a losses or in? quickly? anything it pretty was no expecting industry like resolution credit,

Tom Dolan

some this Yes. return -- projects, summer. is winter, hospitality. these involved it it, The industry the structure. some out slow other that and and what's back an where to the really are other like more left sponsor behind -- in the the coming type funds and ground typically RV in is of so just it's And its expect there some And normal it's transactions are to in that of to trend instead projects support we cabin

Operator

line question next of Kelly from KBW. from the our And comes Motta

Kelly Motta

looks last quarter. the in just were It you starting with where of Maybe down right like said you came in expenses. you middle

any be if with we well takes, the Bridge Just puts sort Heartland the we cost incorporating Wheatland you ahead, about of should announced. wondering, associated should of if transaction how savings thinking as we as with look any and costs there's be

Ron Copher

the Kelly, We down the there. right thanks Yes, here. Yes, hit middle Ron for it recognition.

that departments, I of pretty on make the million end is good. everybody focus But I divisions, So QX, be I'm stick continues that. that's to the that. the high $XXX for million. The guide to $XXX to corporate to we're on with going want The give to point want going to

And we second quarters out quarter. about I through over expect to have the spread to do be million X there. think $X But Wheatland, another the will those speaking cost as that get ratably. of we'll savings we

that We reason range One $XXX to a of going thing high have of closer X had the end the million. I to and mind, months. only X now in there, Wheatland another in to full months we're keep say why

would that be helps it information. that let Any that on then me there. high questions why end of So at explain the And pause range.

Kelly Motta

I No, well. was Ron. Thanks, think quite that explained

Ron Copher

but acquisition to on we've that going will in the away the we're basis operating, that then months the everybody thing that's factoring -- into that close the share is the got let transaction-related But take quarter. in Rocky of expensed in an of Mountain, X to branch $X.XX Okay. Again, per third in me largely XXXX, the we're operating be get expenses going we're should for July.

So will an on you after-tax X that's $X.XX the operating that the then $X.XXX months, just in expenses say be will. But quarter, if transaction basis, $X.XX. each over

So But about we feel that quarter then little will the that up show very that will in and pretty third in good primarily up quarter. -- expect it. in show I fourth

Kelly Motta

forming, Got of most the what outlook to Can seeing look pipelines how loan through you balance as the provide they're right your of and it. opportunities this look Maybe where helpful. year. That's like an just turning you growth. ahead now, overview you're

Tom Dolan

little to just XXXX. bit. Kelly, much Yes, Yes, Sure. Tom. rewind We a saw pretty the throughout pipelines is clock muted this

stable Now the the full we're our a low first quarter, year, our a around so rates at where guidance little up and -- more that which guidance we're digits. to bit seen little going the going. is interest pick We've for there's in to are mid-single been pipelines still encouraging

to bit some growth little QX, we'll slow. tends think QX, I probably in stronger QX see a be

for the digits. to low year, mid-single overall So

then And industries or across industry of pretty widespread terms it's geography, -- and footprint. in the specific across fairly it's HB our

an nothing is out really as outlier. So standing

Kelly Motta

the on the And me. I helpful. margin then color end That's maybe previously from the expectation around one now your that, it. and lower appreciate that's of range. provided last Got

the ahead, balance flows of Or to is funded Just the this lot there Do still size repayment. growth a mostly year? with of the to expect the should be through securities balance portion? we grow is the And parts just whatnot. you about think the loan sheet of quarter BTFP wondering, as with sheet going balance thinking how we moving and be

Byron Pollan

funded securities loan continue flow do portfolio. I We do $XXX outflow. off million see of think growth to will with of about our be securities coming cash

on fund. Tom side sheet. massive this will loan to a The see I be think growth that's that of going the balance

somewhere cash it you I overall, it the see million. now, will that and maintain range So $XXX $XXX balance million think our between probably in

fairly sheet acquisitions quarter organically. happen that's to see in stable there, add the just ended the branch year. likely And a where So balance we the will from later that

Operator

our from comes Jeff And question D.A. of from the Davidson. Rulis next line

Jeff Rulis

I Byron, sorry margin, the to just get wanted to but back on clarify.

I low million. way talking at think of end We're when kind that trajectory about that correct year-end. that? about Is think at said you $XXX towards to

Byron Pollan

We will it growing full and in million do be think quarter-over-quarter the end area. on $XXX up Yes. that year,

So I here, dynamics of our have in not are we of would structure our Fed balance quarter-over-quarter. assets continued positive and that cut. sheet say growth the dependent lot from And the of a repricing on

of going the see really where in you're the that's to margin the growth And year. rest our so for

Jeff Rulis

exiting talking last about year, could you potentially QX -- I that you were of But quarter Okay. mean, kind have we think X%. the I --

rate included it's that talked better trending be this around some cuts, think rate about that up. and cuts still you understanding maybe I would time that

is I But without of for So if fair am with that right year. full I it's -- out. -- cuts the put cuts, play that thinking that getting even average that way, the at let is that low million with at an guide, end north me not exiting $XXX to if maybe something it the end this X that high million $XXX mean probably year million. that doesn't Is about we're $XXX

Byron Pollan

as be I of branches back we get are what we exit year, with coming the approaching up That's fewer give balance addition of with mentioned, we Fed right. the sheet. cuts, high We'll and to as Xs, Yes. on kind the the that the

but there, grow I the I us takes as and the in be low to And close we'll I think continuing overall, to see guidance, puts mentioned. some year, do previous So that on margin.

Randall Chesler

Byron fourth to reaches be million the almost and that when is to X% you The is -- full low margin Jeff, margin, in is does margin going but closer year that the in what to grow, year then the that's quarter, $XXX closer full the range. the take saying

Jeff Rulis

well discussions, in as call I 'XX Randy, you and correct this on mentioned as as as momentum calls, well. into prior kind And there's prior Okay. that's we think of

Randall Chesler

Yes.

Jeff Rulis

of Okay. run but if to But head Where more of if that whatever about sorry you onetime rate range rate million. the for side, branch And transaction Ron, HTLF of maybe I I terms The appreciate the ex then the in head costs call in to the end that. by. with yes, that kind expense they expenses -- the you quarter get What of follow-ons. some think -- high wanted XQ bring run the does division $XXX deal. just kind saves, in we quarterly third then cost or core? on in does

Ron Copher

Yes.

pick up, first of, Mountain in that we'll months. have for X So quarter, the third branches we the Bank Rocky only

going to but XX% then only got said we're X only you we'll have months. overall, that occur, cost and a XX% we've savings have So of

cost in be respect. the savings So because saves -- show we're it's 'XX big not typical the to in will because away, up have convert cost there that a a right It XXX% to stock of market, in deal. it going won't having being

actually to So going see fourth there deal. quantify want it but I slight some up the what not we quarter, I'm the just be close yet. third, when the but to in will ready get to trending in we're on

Jeff Rulis

question. high bringing the of year those And early removed, in Okay. customers And you of like crisis I peak led back. just the side you the wagons 'XX? level, competitively guess, do kind at of away a are think kind some you've a your reestablished with if maybe in team liquidity Randy. the of sort bank with we're of a from of guess or of the feel just And that. a kind customers where deposit One you I terms 'XX, circle year feeling will. removed terms in kind in on and kind one, late last of It's high-level I of

Randall Chesler

Yes. happened Yes, lot 'XX. has since a

status moving after with of the up some rates an quickly turbulence did back job the you in think back the the back. are team the excellent we're had is bringing -- doing, up moving I the we The are the customers think if relationships of fear holding Valley to fact, there I going current failure. based about on grabs good I we 'XX, the then for banks in a new them in of some other people and the now of go both to good some think and out around kind customers on some market. that very good job that Silicon we and only back the market, to based had all bring team, And but very good customers And right so think of rates Bank market I back want customers. not on with what feel growing done have in, in

very could looks right favorable. But it looks now, overall of favorable. a right Jeff as think now, banking I very fragile. still environment So the bit be

Operator

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

Matthew Clark

close just the margin. on loop to the Maybe

at the average spot could -- end sorry, and the then I'm NIM NIM of and us deposit rate end you the in at March. If then month of the on average the the December of give costs And March?

Byron Pollan

was total was rates of on March the $XXX on And $XXX million. month margin spot million. the Sure. March XX then deposits Spot in

Matthew Clark

$XXX million.

combined those and you somewhat over, margin that range to Heartland it's then and a And help loans related then the can are on expected the balances? come on branch of if deal, Okay. even Great. quantify deposits the

Ron Copher

Jeff, Yes, Ron here.

million, throw we're getting just in mark there repo, for That's that pick on yield up I'll on the I'm the that, to the $XXX million. coupon So accretion going second. a $XXX. in a coming deposits, million the to value deposits secured is and the but $XXX the on get what's fair over. $X we'll

On the million X.XX%. yield $XXX of loans, coming again, in, a

the the retain and X.XX%. had to can deposits, on cost up deposits, order also had On yield in some as They've they've average to price -- is you imagine. migration

the the fully over both and So $XX $XX dollar loan at and amount years. the credit the that mark accretable million, combined million X on amortized rate mark is marks, includes

well. both marks margin the healthy, the purchase pretty should -- be and the as So then with actual accounting

Matthew Clark

ratio. I an of year And Great. efficiency on that next basis, and to XX%. longer-term well just ratio can like Okay. think, XX%, quarter this do efficiency year? sure of operating about above be, think fourth your on it then you you'd I'm higher XX%, It's into goal, your than kind get then by the to Where

Ron Copher

I we're coming say, give to so have can their range, that I Again, just M&A. have that to in, to transaction in, going say those the would we though in you costs fact a factor even factors

will it do. you, range. to tell say, can pull probably would we could be XX%, out And realistically XX% operating, That's all get XX%, the the would I I So best XX% we in. that you is if

Matthew Clark

lower, You if mean excluding... it's

Ron Copher

Lower, yes, yes.

Matthew Clark

Okay.

ex XX%, the the charges? higher than lower not merger XX%, So with

Ron Copher

Yes.

Matthew Clark

Okay.

Ron Copher

right. That's

Matthew Clark

Okay. And year? is you that by next suggesting? thinking that that how you're Or the fourth are quarter this year, -- what is is about

Ron Copher

full It year. for could be the

Matthew Clark

For this year.

Ron Copher

Yes.

Matthew Clark

Okay.

Operator

Stephens. Our Terrell line question [Operator of comes the Instructions] from next from Andrew

Andrew Terrell

want of basis, loaded fully a there a so operating any second XQ? clarify, $XXX I is don't could it on for expenses, million merger any on quarter. I the follow-up million and that GAAP is in merger maybe If kind to know the Or excluding of to if basis? kind of just $XXX that end are on higher just expectations I the quickly charges?

Ron Copher

Yes.

expenses excluding second So in it the the merger-related quarter. is

M&A estimated be $X still than So trailing million we'll to trailing no expenses. more have and some

Andrew Terrell

it don't able operating missed figure. Got had accretion provide it. if should the this, quarter have we expense from branch but the acquisition, might helpful we the there the expense get math, just know, are -- I in would you be I to operating the add but the probably with we expect I can third think And Okay. then

Ron Copher

will would be to with a additional just go going again, $X up it's from including million time. I savings, limited pick because of say would the that. I matter cost Yes, expense noninterest it's

Andrew Terrell

with helpful. the looks to was, quarter, Okay. can yields of yields taxable March I it maybe a at securities you I should securities in for normalized share If X.XX%, appreciate If yield of think position briefly. XX the lot trend but it. some I back BTFP like how go kind it or repayment. in the at second that's the the I just margin cash just Can look the securities the just expectations quarter. provide reported the spot

Randall Chesler

double the $X the Byron Ron give you. just here We're at to checking expenses of you -- million the is that Yes. is just branch checking gave end And that the for for till while the to acquisition numbers year.

Ron Copher

the Right. the through of XX from X July end the year, months.

Andrew Terrell

Okay.

it. So got

Byron Pollan

investment to back at taxable our yields at X.XX% X.XX% on the our circling yield. investments tax are securities And and exempt

Andrew Terrell

X.XX%.

repricing the Okay. much Perfect. side. loan how on book remind And reminder cash the you story bond on a there? us just side, expect the just in then maybe kind understand flow quarterly the on of you just Can

Byron Pollan

getting quarter We're down principal $XXX securities includes interest our and Yes. portfolio. payments. on in million about cash pay a That

Operator

question KBW. question our And is Motta line from a from of Kelly the next follow-up

Kelly Motta

just I on follow-up the margin. to questions related X wanted

on the this can and over next? coming fixed repricing remind First, year course you loan of us the off

Byron Pollan

quick a me here. second Give Sure.

million fixed year, would fixed well, loans rate XX to I in are XX, just loans under So December maturing say, $XXX this from maturing. rate -- March of

Kelly Motta

no last longer, to Got understanding that guidance you make make call on to Or rate in of, when million, the assuming said want -- higher I correctly. And expect horse, it. the assuming sure you dead want is me, provided assumed a you just low guidance Is sure I'm it, for just I at $XXX the end last beat here? quarter, helpful. rates and understanding margin question the I change That cuts. of that that. X is for then to hate range I'm provided now Byron,

Byron Pollan

will be I there in assume one lag would we in do guide, have margin forecast. cuts when in that and our getting pricing that one September, do be Sure. from a a December. come say when will benefit able of our that Fed the between Sure. a September, deposit down. current forecast, in we In cut lot We're cuts because not X to December

that point this difference and or cut at cuts no between is the September, It's big higher our So point. X in for December model. basis longer, a not

Operator

you. does This Randy of session question-and-answer back the the to conclude remarks. for to I'd Thank program. today's hand like further any Chesler program

Randall Chesler

to right, Jonathan, the great We a for want All Friday call a thank everybody into Have great you. today. thank and dialing weekend. Thank you.

Operator

Thank conference. you, your in ladies conclude for the and gentlemen, participation today's program. This does

now Good day. may You disconnect.

Glacier Bancorp (GBCI) 19 Apr 242024 Q1 Earnings call transcript