GBCI - Earnings call transcript Q3 2024

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Operator

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

Randall Chesler

you us thank and morning, for today. joining Good Chief is our Treasurer; on Chief me Chery, Dolan, here Accounting Officer; the Copher, Kalispell in our Don Dose, Administrator; our With phone Financial is joining our Ron Byron Chief Credit Officer Angela Administrative and our Chief us Tom Officer. Pollan,

you Page first subject our to emerged and forward-looking considerations same like point that out the The release, section. to this in pronounced quarters press the starting review to and XX on positive I'd we that through our became more quarter. encourage discussion and today is trends continued of outlined third organic second our

of we the with division, third addition, Bank in X owned its including the the In deposits, Financial totaling estate branches purchase assets. associated Rocky finalized assets in and fixed loans, Mountain Montana quarter, million of $XXX real the Heartland branches from

to closed this over on and July that XX We these transaction Glacier weekend. systems branches converted

quarter, Net net we interest noninterest X.XX%. the income prior quarter XX net grew points or quarter million. interest or the strong from an million Net higher from or XX% X% of current million, and income by $XX.X margin of income. primarily XX% increase growth interest driven was increased $X.XX, $X.X was for quarter, increasing from $XX Net X.XX% the prior basis which million million This income income to EPS interest $XXX of had $XX.X income.

of annualized during the $XX.X quarter quarter XX of $XX.X and current $XXX X.XX% increased from loan current loan quarter core during $XXX X% increased organically the quarter. million during X.XX%. of in The points deposits basis million current increased the million or the X% prior Total the billion X% or $XX.X $XXX during yield annualized yield current current quarter. loan or organically billion million increased the of portfolio increased X% quarter or and The

XX% the Noninterest-bearing deposits quarter million quarter. during annualized organically $XXX during of million increased the or $X.X X% current billion increased current or and $XXX

funding deposits, total cost quarter noninterest-bearing including of of basis points. to X cost point Our the in basis quarter, prior a XXX total of from the funding decreased

deposits, current to Core the expense for of including over million in quarter or quarter. X.XX% million our increasing X% quarter. was compared Total the the prior X.XX% expected $X.X noninterest-bearing deposit $XXX in was quarter within the costs, prior range, noninterest

nonperforming with at charge-offs credit increased While stage to no loans levels delinquencies to our assets and negative near net slightly record trends material perform and to continues bank early emerging. assets average portfolio

The current quarter Bank. credit loss included the of of Mountain acquisition for $X.X million losses from provision Rocky $X million of credit

$XXX,XXX was Excluding the of the acquisition totaled loan credit from prior and million, the or of including was unfunded loss expense over million of credit from $X.X loss loans $XX.X Bank current for expense million, quarter of loss million quarter. Noninterest $X.X X% commitments. Rocky quarter income Mountain current expense an increase credit $X.X the which

primarily the available-for-sale Rocky and equity in on core million increased decrease Bank which of quarter increase to loss was was by result offset compared prior $XX.X stockholders' goodwill X% Tangible deposit the the associated billion and acquisition. a securities, with $X.X partially unrealized an the intangibles the or of debt Mountain

XX has team dividends The a $X.XX dividend XXX company times. declared Glacier The done has share. per quarterly dividend the and has of excellent job an increased also We declared quarterly closed In care XXXX, X the we taking assets. organically and our the customers approximately totaling business billion welcoming growing new while in of year, acquisitions acquisitions. during our converted $X.X and consecutive

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

Operator

Jeff of [Operator from come will Rulis D.A. question Instructions] line the first Davidson. Our from

Jeff Rulis

growth noninterest-bearing the the to on side. wanted touch organic on I

the I simply real in outlier I most quarter double-digit guess what think with show balance, occurred growth? annualized the growth. to a that hold noninterest-bearing looking not and

Byron Pollan

quarter. this growth we Jeff, third organic is Yes, Byron. Yes, were see to pleased the in really that

is strength what Third that. in see And typically we base did and And deliver noninterest-bearing. divisions this particularly time saw in deposit seasonal we a our really our when that's quarter. on quarter

So that to was see. great

are seeing, that at nearly we to a there, say, see We of accounts a that still it's migration interest-bearing year continuing level were not little to bit the ago. is but

do of fourth little. inflow the unwind quarter a that seasonal to terms our a that be in. little of could that In just I came of bit could we think for outlook down for noninterest-bearing, We flat see

Jeff Rulis

maybe the also down. exit Okay. borrowings giving timing helpful. My ultimately that quarter be deposit end the would or of question here. impact I'm and guess The and, cost. of an at a have the the in build And you noninterest-bearing the deposit Maybe Byron, of is, on spot bringing of timing if -- timing the quarter you cost additionally,

Byron Pollan

Sure.

build noninterest-bearing. of month, -- noninterest-bearing saw the of throughout basis the September on our terms the every in growth we August, organic In timing an July, saw quarter,

spread throughout quarter. really the it So very was nicely

our cover overnight the deposits, is of funding questions? rate was XX in did FHLB for of terms quarter. in of that of spot all on this timing our In happen I rate the Did terms July the your earlier And September portion FHLB paydown, total the a spot X.XX%. in our rate,

Jeff Rulis

lot maybe a if Yes, helped I could hop that expenses. -- to

think include really the of guide, costs. I it low think merger at I end and the

rate hesitant of we to kind bit guess ahead? little that I beat seems So run ask It quarter. number a Ron, like the about I'm each

the I quarter. guess terms full in So branches what should we you'd have -- expect a for of

thoughts a expenses missed but on in the any weeks third, of couple ahead? you think I

Ron Copher

Yes.

a controlling yes, stellar expenses very and a job to Just divisions it's and development. did happened. Yes, where pleasant being recognize, on them, focused the hats so to off is really that's

maintained that the gain So you sale expense think on into be $XXX.X the quarter. we M&A, the core can noninterest at if came and the And the exclude do next in million. that,

back driving go what's to need we And and that. really understand

about our picking is Mountain compensation Rocky even the measure spoken in past, an submission. time got day the closing technology. time. our cut We've And on controlled, in up half to It's that each again, well part, the batch a account. from real in branch folks we've see of to that's Bank open very now controlled. is large instead in very I've You'll

The point of we're but things very all well, people. have doing with divisions technology. this embraced is The that the less strongly

talking So and more last to they're theme been that's year. less, do started able really we that a about with

that the or excluding losses, guide the means M&A. it means I continues on understand that so to core say expense. less gain happen it sale noninterest core, then And When will and for will give help I reported

the $X to going So million lower we're each the I'm end. lower going -- to guide guide on by

So $XXX it will for QX. million to be $XXX million

Operator

line come from of KBW. Kelly Motta will Our from next question the

Kelly Motta

Maybe I couple again, question, piggy think. that really of off guiding it's favorably compared for a backing you've quarters, to expense where now been

cut additional expenses what but know it think you we rate your But the -- and as normalized kind of I to the for budget growing the about of like at ahead, look ready not may there? look thoughts with expense are as basis. just seems -- done, a has yet good any on process. Just room what's given company, what's most XXXX been good fat growth be of natural And a we run you you've where in what that rate

Byron Pollan

I getting I than third-party slightly when And continuing control say still consultants out we've last reflects in functions. that's that question. And go Kelly, large our appreciate this measure, there. on having control year That's the had gains heightened what in expectations. the would year. average -- We're using the build with to part, efficiency better Yes. help functions, than regulatory X%. we're

And top coming that, is ahead back as grow X%. to the it. But we of so we're we sure staying make want on staying to of that answer

Kelly Motta

Got helpful. turning And loan to it. then That's growth. maybe

range. you're ex you've been this year, done the deals in You've running single-digit the low

of wondering how if pipeline cuts demand and you've well seeing As pent-up you're seen Just of it opportunities state ahead the through as today? the that? stands think as any in where to rate

Tom Dolan

But the especially was But see sidelines have more recent that's clarity there's the Yes. third the over demand continued until bit keeping from that it we the it next To Tom. Kelly, customers pent-up answer fairly on there's pipeline, to flow. on yet translate of significant think bit is seeing little a this question our the rate We're deal after little reduction. your optimism I uncertainty a still quarter. stable throughout to quarter.

of little slower year, for of is I the quarter the see think agriculture to So particularly for the a the to typically rest due Fourth anyway, probably same. more paydowns. growth going quarter you're

in I I said fourth a the same. the see bit of So probably little think we'll quarter, more like

Operator

Sandler. Piper line Our next of question from come Matthew will the from Clark

question. We'll move on our next to

from Raymond Feaster line next will come the question from of David Our James.

David Feaster

Just you're seeing curious the organic on to what about growth and some drive mean, how was shaping the up, clients that's you behind you're I'm demand of payoffs bit maybe kind where the and pace of a of Maybe or just of a how and weaker hearing growth lighter. much touching growth side. I loan think from higher I opportunity that. the drivers pipeline is function curious forward? kind of paydowns? growth, of mean how organic going

Tom Dolan

still David, the there's pent-up relatively continued quarter. is demand. stable were But optimism. pipelines throughout Yes, Yes, some Tom. this There's

to projects and that growth, into it is sell There's that, bit either on the not out behind some we've little to or is So the of the demand sold of and development asset see. question quite hit both. in or seen secondary these market. then refinanced elevated we would And payoffs, normally addition answer the construction strength your the either as the stabilization drivers was of a

to for replacing seen And see outflow. into are the and the you've either well. term portfolio balances or that's the -- construction why volume come Those not is quarter. just the another So continuing down we're as sold move reason another things that

David Feaster

roll-off base? you in repricing And on And rates just and with the just the earning earning opportunity dynamics there the Okay. the the curious, -- about asset the think in are continue remixing loan asset to roll-off think the book do the then within relative portfolio, term how touching I'm yields base. where do and new to upcoming repricing cash the dynamics securities and And some from loan how there? flows you remix maturities similarly, of near about rates? the maybe to

Randall Chesler

loan move take are part portfolio the let's investment The flows. on then first maybe, thoughts what Byron, -- we Well, to on that. new of and And so and that. cash piece let's the your can

Tom Dolan

Yes.

the mid So yields, loan line top upper to still our production. we're seeing Xs in

off So the pass I'll a on to coming it yield, relation to as Byron.

Byron Pollan

Sure.

flow cash see a remains and good quarters, think, coming million off guide. that, for next X.X%. the The securities I cash yield of strong interest. to our that includes of continue quarter of cash That portfolio. is principal a $XXX flow We flow off about it's couple

that for lot portfolio And the remix as that into that mentioned, we of so and Tom creates us. move repricing momentum that just loan a at lift yields

see I we additional will maturity do to say some in start securities XXXX.

so bonds quarter, to start And we to second in have we -- us. come see back some treasury the

second XXXX. We in XXXX, of the And we $XXX quarter have million quarter fourth mature. of $XX then have million in the

So we year. next pace. that have Look $XXX for increase been running to a pretty consistent million at begin to

David Feaster

just massive but think growth how level, supplementing of and with kind key density and I'm are maybe in then and do driving expansion curious a conversations some organic some markets. just you about markets, growth in really about priorities, think some mean of how you've relative I And right? think other Okay. your smaller you to you of those that on you're where some how broad M&A how do high of about the going? thinking network, footprints got in footprint, maybe kind footprint focused

Ron Copher

Yes.

outlook very, of states good. of are think So we're fastest-growing growth. in the the States I states GDP in is X the in United The very some terms

encouraged very that. So by

it's really -- terms Dave. In both strategies,

an have with few XX looking and opportunities. strategy they're divisions at And a them. organic see division they of across each at expanding where that their we So place the quite markets as takes

growth markets. at grow in looking lot fill to of in these At the M&A we're fast a and time, same opportunities scale

and And some add more more, And at things scale we with are that look we're on we to talk see. the things looking as opportunities, so people see that opportunities to those we and the of divisions existing at. and to build

an markets So but acquisition good into, to don't available at building that them organically. both We markets be then an think it's as just into markets scale there's today. both we're acquisition are for we'll really organic. wait we in in we us, go the go might appear, look to to David, that And

David Feaster

where see to this like density markets point? you'd point the Are in? opportunity there any attractive for or expansion is you maybe most market looks where you at opportunity your that Or at to of this drive more there

Ron Copher

they across all X -- states, interested areas that growing the we'd They're in acquisition. Yes. have through be

one at that that the states. we would So I I of have there's strengths one And have put those we X we that's across is can't say the think multiple top. options

so the in keep we're where something see us good not one for that's And where really particular down you'll those open, go. our look pinned waiting and options X occur, states across opportunities area,

Operator

question [Operator Instructions] will of Davidson. Rulis Our next from from line come the D.A. Jeff

Jeff Rulis

But Just know had some wanted it's in one like to just We're didn't but we're see check other. saw in and of a around. -- on systemic levels. going side, fraction sound looked X-X on to quarter? ag just small Randy, speak think you appears, it the at family low the in and And terms the increase, on I and to I opening comments, hairs bumping splitting kind but these credit and and anything on the of it what anything I your

Tom Dolan

Jeff, outsized as context there's geography from Randy of change. that's level Yes. said, class risk. the I just But specific asset appreciate shown But industry or no very the appreciated. any around

that think strong obviously just signs very asset what we're is continued off a overall We're quality. of of in quality. normalization of seeing I position asset coming

move So take to it needle. the much doesn't

the the market. been basically particulars, now. some with more was into we not getting challenge mentioned The And that one agriculture. kind on for relationship side, you is That time there management of working have

spread the quarters. of of Outside over next well concern. of nothing working couple we'll So particular there's pretty that, through out. that It's be

Operator

any you. I'm back any the remarks. it in I Thank closing queue. questions showing not to for now to like further turn would Randy over

Randall Chesler

much you very Great. dialing in Well, today... thank for

Operator

We Do it? do want have one take question. you to

Randall Chesler

Sure. Absolutely.

Operator

question Matthew Piper Clark Sandler. comes Our from from next

Matthew Clark

in wasn't. I Sorry about the it it was thought and queue that.

is just yields. the on First question core loan

what on book the book cuts loan X.XX% accretion And excluding but XX pressure we floating? your bps get up, much fourth assuming year, next also just are here rate then were the by to in is your they the of how Can of think on with just loan I us benefit you [ into yields ]. back remind additional in some and floating? the quarter and the -- trend thoughts truly

Byron Pollan

Yes, question. Byron. the appreciate this is I

loan We SOFR. In don't portfolio terms floating, indexed of to of index prime. I have is X% truly much about our to really floating,

loan next the a it's back the is that mentioned, year, very powerful the repricing portfolio. and as into So of floating us. for you component is our book Trend of that that be going dynamic to

I are where yield that do think and loan I rates to repricing the continue happens. our our where in so as any reprice expect And rates some given portfolio And will XX% are expect in About lift market at of increase would we year. we they to see loan expectations at repricing that going.

So do lift. continued we see

Matthew Clark

margin average core then either reported? in have just the the September, And of it, Great. if or you month

Byron Pollan

Sure.

was X.XX% September month the ] [ in of margin Our

Operator

questions. Now you. to we don't over Randy, have any further

Randall Chesler

in. right, of a everybody, appreciate joining and well. to Friday the thank dialing this I it. the great I interest. Thanks for Appreciate as wish everybody rest us Victor. day, want morning. And All for you, And weekend

Operator

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

may Everyone, You a now day. disconnect. great have

Glacier Bancorp (GBCI) 25 Oct 242024 Q3 Earnings call transcript