GBCI - Earnings call transcript Q2 2024

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Operator

Good day, and thank you for standing by, and welcome to the Glacier Bancorp Second Quarter Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your speaker today, Randy Chesler, President and CEO of Glacier Bancorp. Please go ahead.

Randall Chesler

All right. Justin. you, Thank and in Financial here our morning Ron Chief Administrative is Credit is the With Dose, Angela Byron Kalispell Pollan, Chief our Officer Chief our Officer; Don Officer. Dolan, us our Copher, on Administrator; phone me Accounting Cherry, this joining Treasurer; Chief Tom review considerations that and XX Page of press release point I'd today subject on like out to to starting is encourage this you to we discussion the the section. same forward-looking our were that sharper second trends The our into in positive quarter came evident focus first in quarter. the

to driven strong interest lower Net had from points EPS $XXX.X income margin for $XX.X We Net growth $XX.X the the in at million, for XX% X.XX% was and expense. the interest the quarter, grew quarter prior loss X to or which X.XX%. Net increased ended quarter, million of by basis income credit was quarter, prior quarter million million. million, the noninterest Fed interest the end at income from quarter. the and in prior compared was the quarter, earn a a which decrease This in quarter. primarily decrease we using due of onto prior at down deposit which the drove borrowings expense cash, flat of to pay driven which $X.X X.X% interest the in by $X.X

basis prior into XX The points from yield increased for basis loan We quarter. expect quarter year quarter from to fourth X.XX%. and see second net the interest prior It income XXXX. XX and quarters the growth in X.XX% the the and increased third was in current points

basis the of driven borrowings. ending points. a of the at decreased funding basis noninterest-bearing of XXX basis a X funding total in quarter points, in cost including cost funding deposits Our to X reduction deposit increased from basis points quarter quarter, XXX cost prior Core points, by total the

quarter. We during X% but of increased why XX noninterest see expense were increased the deposits basis points, million quarter. which is pleased balance $X the annualized interest or $XXX decreased the by borrowing million, to for costs average billion Borrowing decreased $XX.X

of core prior prior essentially $XX the versus quarter. flat excluding deposits Wheatland down they While the billion were to the year acquisition, were second quarter,

includes credit in expense For provision the and the which $X.X we loss $X.X million credit loss from of reserved million million quarter, unfunded reserve. commitments $X.X of expense, expense loan

last We kept X.XX%. the the percentage essentially to quarter provision loans flat of to at

X.XX% Early-stage million performance decreased Early-stage average credit be to well. were to stable. as the assets very from loans continued assets, bank $XX.X percentage Our delinquencies versus primarily very X.XX% the in and of expenses Noninterest a with $XX.X the in net $XX.X regulatory delinquencies performed of prior million to quarter. loans million Nonperforming or the versus a quarter, charge-offs expense credit investments. at tax ended expenses quarter down million, due associated reduction X% prior assessments, acquisition-related quarter. the and $XXX prior

quarter. over loans. billion $X.X million current equity Stockholders' X% and during and gain Additionally, increased growth. onetime $XX.X X% billion during quarter the the in or The expenses. million of reflecting prior $XX.X our million, portfolio the or $XXX the of steady, was on a at disciplined we had branch in year quarter, Noninterest $XX.X summer, the $X.X $XXX increased both annualized beginning service of for increases that building quarter income the gains of charges pickup or including of reflecting increased million loan the million good continued, sale X% quarter residential sale second reduced

consecutive assets X the deposits, its fixed including branches. associated loans, agreement has division, owned We with estate announced and exit We the declared market. increased Montana per Montana share. the a to a XXx. real of quarterly XXX The purchased assumption decided and purchase quarterly Bank company of branches also Rocky dividend dividend we $X.XX with In had Heartland dividends who the has Bank, declared mid-February, Mountain and

franchise it purchase branches of X noted, rare previously well-running divisional the of a markets to is good and I customers. where opportunity good branch we in knowledge leadership As a a already have

This too. transaction and team deposits and a loans of high-quality great includes employees,

close this transaction the to day welcome and to this the Mountain over Glacier branches of today to Bancorp. these expect and weekend. their We at customers end Glacier We new Rocky our systems teammates convert Bank

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

Operator

Instructions] [Operator

Clark Matthew from comes question first from Sandler. our And Piper

Matthew Clark

balances? just coming this Heartland the loans me, you that us deposits evening. on over those and for one are First update on Can just

Randall Chesler

up the through -- Sure. what totaling you today. to do are we numbers just want the Ron, go

believe million $XXX So loans deposits and were were I where we in ended run finally... up

Ron Copher

million. $XXX About

Randall Chesler

$XXX loans. in million

Matthew Clark

on accretion the that think $XX Got Any through, just was be assumed expected X And years then over it to I previously. to million number? come that's Okay. it. update to

Ron Copher

is Yes. over million, positive. estimate [short] It just very $XX still current estimate -- X -- years

Matthew Clark

your here, what's you is which of have for to started can trim Okay. I -- upcoming trick a you to And Do like here? You the like slowed feel deposit guess higher? you you increase the little there see. good costs, is then feel outlook stabilize deposit quarter? might kind rates? on the Or

Byron Pollan

of is in stabilize our Matthew, this costs. can Yes, we Yes, address did I continuing and have lot deposit that. success Byron, a to

we think that. hold can I

rates. we -- continue from of acceptance to customer lower So we do here, test are

see We little able I cases. be We success to overall, think our we of But stabilization kind see headwind a in a so are there. still to continue cost. in having deposit some will rate overall that's total some cost of bit migration,

Matthew Clark

does that true? guide Okay. And hold then just the NIM to update still XQ, on X% for

Byron Pollan

Yes.

In are in we much place. same before still the the terms discussed drivers pretty I We're same of there. think margin,

On Mountain asset as top dynamics, so momentum that is today, we the including of that, there. settled provide We still very repricing boost. said, have Randy that acquisition strong some Rocky will that, have branch

be in go and the we'll So think through as neighborhood expecting are to we growth of I as we year, X%. see the year, do we exit the --

Matthew Clark

on just And Okay. then securities repricing.

just reprices you and that Can bigger I at? and amount when have next quantify yield year. slug occurs what that that's that think you a

Byron Pollan

somewhere the quarter fourth of beginning We them securities but have yield next that, treasury consider neighborhood Yes. to will in some $XXX do year. on in have of don't low. be that chunkier I you million. for a the really mature

Matthew Clark

Yes.

some estimate. parts refund And on quarter, branch think insurance there then this relative a just sale FDIC moving expenses, was prior on the Okay. gain, to I your there

X or like adjusted normalize it the when You've It got performance was the it least going run million. the around you updated in the XQ? on guidance rate for at adjustment. this merger charges Any rate $XXX.X comp and then thoughts run forward maybe seems and quarter, here

Ron Copher

here. audience how through there. get just our me Yes, take we Matthew, let Ron

we million quarter. So in had second $XXX the

the And expenses gain $XXX,XXX you $X.X the then If the end less, subtract the million. what at $XXX,XXX we but add $X.X but previously there. in out then reduction so of branch the QX, former what million. of mentioned, of million at FDIC, guided, that sale you on compensation you back million $XXX.X the we million, million, The $XXX performance-based $X.X the merger-related back accrued had adding of which $X.X we're million up $XXX I low in about added to

divisions. the to complements again, So

as said, All multiyear eyes that that is there $XXX million still in pressure it. on the are inflationary regard. in much being for headwinds That renewal branches, With -- QX mind, contracts still we're guide obviously, to for focused come for is will you to have though And picking million. X will, reason some we're there units. consolidation, branch be the going that, if the there $XXX more be up to even will very

to we're expense continuing So that business invest combination, in but noninterest we'll have then from functions. coming some our control additional

And so if we just keep important, up. that

million $XXX for So million QX. again, repeating to $XXX

Operator

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

Jeff Rulis

Byron, go back I just the wanted margin. to to

like the sure quarter. you just that, got Is double right? see that's the to acceleration margin point. make the to want So sequential QX to get increase to that X, of an of I we jump-off from second the --

Byron Pollan

some and into see well. right I is quarter we acceleration third momentum here. about fourth some carrying do acceleration to Yes. the some doubling quarter way We in the don't the but if know it, think see as do

Jeff Rulis

Okay. margin you average? And have exit the or maybe to do June

Byron Pollan

the of XXX June June. was margin The I for have. month

Jeff Rulis

Great.

So up, interested gain miscellaneous of to maybe that some of to That up it Or fee or impressive income from that Randy not see just seasonal full the going leg the quarter. sort rate? quarter a to about as in the tailwinds. in is wanted unpack sale is on comfortability that sustainability Anyway, your thoughts forward. I fees, growth side. checking said, rate pretty of charge, service trying the hop and Wheatland on of maybe over was that growth that

Ron Copher

say still Tourism here. sustainable. Service for accounts. It's active it' I new Yes. our Ron very Yes, communities. would charges, is

checking continue to very on We opening accounts. be focused

that of All a is positive.

pretty will positive. sale on gain the flat reference, of point there, overall, of just thing be the but that Just

Jeff Rulis

Okay. there. And Ron would expect

QX So up we pretty maybe robust, and maybe first it a softens quarter, but and is into like sounds a bit QX strong or... get

Ron Copher

would you Exactly as expect.

Jeff Rulis

just one, the go the touch growth. other in be interested forward. would the that of one more I And decline to kind balances, projects guess, loan segment. Is of refilling? on as guess the for in My Okay. finished is pipeline construction a What outlook on second kind and, the half

that's digit, been to You've see second into seeing low all but with to in wanted changed mid-single the the you're if what consistent pretty half. at

Tom Dolan

And through on, digits Tom. just the we're too. I the you're there's some seasonality there, it's we Jeff, mid-single what carry where we're Low to to see of is changing. that think Yes, year. discussing don't like going end effect

to expect additional drilling headwind. once loans usually would the cycle start the end bit I -- some of maybe maybe ag fourth some show third their strength we So at have a in of quarter the quarter production back pay show that's a

firm, the And construction your saw of exactly the the out migration right. in the second we on That's that's quarter. then what construction, question in

overall, saw has second the pipeline quarter. the constant quarter, in of lift remained pipeline nice terms some In really that lift first throughout we in the

of deals pipeline, of that so comprise types a and side. that But construction development in less on terms bit the the little probably

this development at not construction the and loans point, we're side. moving firm fast over So they're as the as to replacing

Operator

James. comes question our from And Feaster from David next Raymond

David Feaster

your do of on the mix. have as side with any asset opt loan have duration going It into kind deposit I stronger would or and growth go excess the about you're I'm core earning to for period. touch type of excess reinvest seems reduce maybe we growth to on of any somewhat to runoff wanted securities liquidity, if earning fund think noncore securities asset let you thoughts maintain cash funding enough it you the kind of curious borrowings into to plans seasonally kind like specially flows side. and with or potential you for how shorter a

size mix. if sheet forward going think of kind the the of balance the Just curious about you and

Randall Chesler

Yes.

chip to on funding away at any our do first if that have I to sheet, would liquidity terms excess think we of In builds be wholesale thing our the balance. do balance

So we we'll have chip away some FHLB those overnight at advances, and do borrowings.

the of of terms think, the aside do deal In all, From sheet closing perspective, the that's let's, and organic -- balance end from overall and first see size, fairly today. I a do an the of stable year. I Rocky through M&A set

add transaction. we're incremental we the loans that, would to that the from Now Rocky getting

So stable the balance I is Rocky for I about the plus say rest how think our sheet would of overall, would year.

David Feaster

expectations early maybe to July. that seasonally impressive. want a given the even and makes deposit And trending? switch core pricing of a more right, throughout perspective And in the trends honestly, core buffer quarter. But that is bit And you just saw through into going general saw quarter quarter, NIV from then the you payments to the deposit I walk growth, deposit growth tax just forward you Obviously how maybe early side. some and for also could the

Ron Copher

Sure. Yes.

quarter, exactly look If kind you're the driven by payments. you was It April of flows at right. tax throughout our

in overcome our to put wasn't when look you total the outflow. it together, you outflow and if an June slight we So April a May April. had increase, And at deposits, enough

So the growth tax yes. kind of there. was would We really see saw sorry, it encouraging. -- story noninterest-bearing in really April, I'm did we say was day a I outflow

way cost does that we growth earlier. is that and stabilization June. And in a noninterest-bearing April, long helping growth that in the about us with towards a really outflow encouraging. So that go talked And little May bit in

the same The is At facing is different. this headwinds the industry deposit we kind of and seasonally, on front, some time, strength. see we're no

balance see quarter, a strength I we the beyond outlook And flat look fourth that's little the we'll bit if some would say of rest our And the headwinds, overall probably from you see the quarter do in deposits up. there. through But our the year. how in historical industry put against I terms think seasonal up when I of some growth. of third so

David Feaster

Okay. front. And of me. you're then an what Curious footprint. M&A choice across last you're That's on Obviously, helpful. kind just your acquirer of seeing X for the

to And But you're this of if expectations to or thoughts your acquisition that. you're closing in the branch near deal now. on and got increased on size kind given You've any in if that interest pace having asset your conversations of appetite focus curious larger and consolidation I'm term, transactions still just the expecting you've billion participate sub-$X the got pulse maybe for scale?

Randall Chesler

branch Yes. over The and it's one, today have -- the the of and Wheatland closed well will doing which end now so weekend, to really, -- the acquisition happy at number beginning branch the done, really and we're Heartland converted year acquisition. at the a of given

issue. in an forward. bank But moderate activity. number we'll to pace bank the run-up going We're that, still the will say, of having discussions. of I'd Recently, prior stocks repositioning see the have terms general increase in In a or

would banks, an I holds there. the so mids -- more you'll stock regional price expect increased increase you'll see And for if see

do More our deal now do people currency, can deal. but strength that. can more We people the could prior a of given pencil out a

disciplined really pick activity what just under if our see And $X billion, the terms to be want we to scale, calls, want very we a strategic be look will to where at I on key and lot that get targets buy. mean to lot things from looks. we of there again, us. It's billion we $X-plus in a changed. the up. little we to And might on I very to hasn't expect get And banks is probably of a stay So to think billion available. it's depending $X -- of

Operator

comes Motta question from next KBW. Kelly our from And

Kelly Motta

fair of sounded net-net, to the to expenses. as headwinds saves you branch quarter to left expect so of just the to you it around I inflationary the circle are as It and say quarters? color might that remarks your that saves cost carry acquisition from wanted what as Wheatland some flow least have some at like wondering to forward is QX I outlook. still. should the of how you takes that good look puts for we probably understanding from next there. parts appreciate kind Or And the through? base range of couple remind moving us Heartland ahead there's well is back from that cost and cost Can the the

Randall Chesler

Yes.

me the call let save Wheatland in and start repeating basically So said in XX% what remember, I with I'd cost in back earlier April. see XXXX. say, We'll --

in XX% so And XXXX.

very $X see and wasn't much saves with There in doing and we'll runaway, very, added QX. but So we a when cost show up well again, that. million QX, QX

X in saves, -- to Then months Wheatland, speak Rocky no come pencil the change there got acting terms the I acquisition, XXXX, but Bank Mountain it. only with So X to in line. XX% bottom we'll in cost that XX of I got XX% would only of but get

X% we up will about what expense. it's in noninterest pick of So

account, we'll in million about $X.X see in from of pickup expense in QX, want point just into quarters. And the $X QX, of in then $X.X X consolidation. that that. estimating million next combined noninterest branch to And a have million, we taking out, to So total

up can $XXX that have a any branches put none So million gains assure say, have of the any expecting may million that couple branches I my any But in losses. in while. be sale, a of losses, I or I'm on not some factored XXX for not for any months, gains but we'll includes will that. sale, take of guide you to

Kelly Motta

cuts That's assuming we through as next. either ahead, helpful. or and some late get rate year we look it. this And Got super

there's Just wondering way I'm that? guys how that any some the deposit to job anticipating a costs encouraging to in done managing good obviously react you're on if change up. moderating. on curious, of it's just You have see cost But those

that? you're Just with expecting curious what

Randall Chesler

I of to transfer think kind they're any expecting right pretty to on reductions, the customers. to cautious going relative Yes, rate that we're

different we to away. have that they built much expectations assumptions talk know they into is on off their I can that, pass banks, to about if take expectations way point that different So around I certainty you pretty move customers conservative while guess right of it's it's our have that Kelly. that a long people rates going up how to a that continue. those view to been given our and feel like and to to this going the And are

Kelly Motta

helpful. me. That's for it. Got Maybe last

have do what cost picking you're of up, deposits that incremental the you funding the is? With

Randall Chesler

are amount they're second. me that. Yes. it get nominal here. One to find Kelly, I'll Kelly, the just what a over give here. back second with deposits The charging, me let coming

It's Here what is is. at. X.XX% over is it coming

again, that's last backfill They've with when that, rate TDs retain to order have at the had particular because and were they're XXX. had you've they the premium they I in as quarter, a so XXX And receive. at deposits in well, now because they'll in guided to that to seen increase

to they've good retain So done I job deposits. think a

Tom Dolan

You're talking the Rocky. about

Kelly Motta

Rocky The Rocky. -- is this Yes.

Operator

comes next Our question from King Instructions] [Operator Truist. from Brandon

Brandon King

understand, margin I Heartland including that X% to with sheet, balance you levels? flattish net as hit that branches? interest So is I from the are these And guess, expecting

Ron Copher

I the say include And does Rocky. organic That flat, without that's branches. Heartland when

coming Rocky So the alone. from acquisition there some be would of growth

Brandon King

debt Okay. $XX securities, dropped income the million. me average And could it reconcile, basis pretty meaningful from guess, on help you movement the cash $X average also then was I in to taxable and an drop million a

there? Is could there anything to So out reconcile that? you call just help me

Ron Copher

Sure.

think in have talk to go the we balances AEA, the looking had. and quarter I to the back first the about we to at when we change that were BTFP

late very happened that in and balances, BTFP down pay the did we So quarter.

and with FHLB but advances, that off around a somewhere March XX the we so that BTFP lesser amount. at paid we replaced And

the that on mentioned, sheet, had of the we and some we excess Randy funding. wholesale so And we paid down balance took as

it And influence all that much And X. QX it so done was very by it that didn't paid -- the QX the because off, of it the we we with course, average of FHLB we that because put got did influence BTFP was the average replace happened But -- that April time in we didn't advances. quarter, the amount as late much. to

So I QX. QX with the seeing in think averages that's to the from what change you're

Brandon King

Okay.

Is So $X I of be kind little guess higher I fair? that cash continue should guess, million. maybe to that a interest running, than

Ron Copher

day-to-day will deposits, as And for QX fluctuate QX. QX It we consistent loans flat cash the and when in at be and the average look cash. cetera. stable and But comment of et inflows of outflows That's should made to that earlier. I kind fairly

Operator

next question comes Andrew our Stephens. from Terrell from And

Andrew Terrell

a recent saw against kind in the billion question the positions about I added of I bond the you around had guys was disclosure Q $X.X most last portfolio think swap year. I kind that on were the swaps that late of of have

any one, benefit strategy? is, of talk question the more realized the incremental broadly, derivative guess can about in from And hedging this And swaps you your you that added XQ? just then then I do So kind or have saw you swaps quarter? the

Ron Copher

we Yes, put on did billion put did we $X.X Sure. -- in in swaps QX.

then. haven't done anything new We since

that we curve balance We're at front rate a for end from is Are the market potential And positioned inflection at how a at of sheet. of liability-sensitive least. the so looking at overall, things one terms cuts. the looking of in potential we're point the we're expectations

Mount. projections for acquisition growth deposits, and on from looking the we're our coming loans at Rocky so in And that's

of on the don't new term to any that those to together. an in from pulling any and have add the put things near we All swaps haven't plans additional perspective, interest swaps book. rate kind risk any But of

Andrew Terrell

over ask appreciate the couple around acquisition. could the I deposits a I coming Okay. branch with more And it. if

if pressure split be have about decline or we I I in think the Or said the anything that I And last specific million is those quarter, seeing the noninterest-bearing million. sequentially If wouldn't you acquired it helpful. recall, the deposits, $XXX it One, think just across deposits? so. of like deposit you then curious, kind of of broadly kind industry? of kind also, more just $XXX talked driving we're

Randall Chesler

just there What's of some also some going on the going on sorting on some what's industry, headwinds and deposits is in out.

sorted think the worked some and being the we net probably There We up number, of with customers with was branches. buyer So some Heartland a a other the that and gross other actually off branches. through of that ended we started I banked were with at one.

well. we so out as those And sorted

we normal it to convert expect, finish kind would of as accelerated it weekend. So plus runoff, once and happy a today branch little you that's -- sale, runoff we're this that maybe why close

I that sorted what accounts relationships little would Andrew, the arms get But of we'll went and And purchaser both. call then between branches branches what our the I other Montana. the a industry was deposit headwinds where. few we of it around think both and go of remaining a Rocky that. in sorting that with out

Andrew Terrell

Yes.

of Okay. fair? expectations this closed. But would presumably, the post guess of more that, guess, -- I you is attrition acquisition the versus around Is about I post that any if net a kind deposit feel so better of gross your number, kind

Randall Chesler

Yes. Yes.

I -- the -- think be that Bancorp we've to that seen. close Glacier the much behavior now we will behavior GB it similar

Andrew Terrell

do then you the And noninterest-bearing split? have Okay.

Ron Copher

they're It Ron but deposits. It's here. at bit, little Yes, pretty good fluctuates a gathering XX%.

Operator

to further turn Randy for now I showing would closing over no the am call back like And to remarks. I questions.

Randall Chesler

Thank and everyone for have us we today, a great appreciate reach really thank Well, you Friday the thank wish other there's joining we Justin, questions right. that dialing summer you, All it. today. you everybody in if have. out enjoy for and any to And

Operator

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

may You disconnect. now

Glacier Bancorp (GBCI) 19 Jul 242024 Q2 Earnings call transcript