Glacier Bancorp(US:GBCI)2022-04-22 18:51Financial Data and Key Metrics Changes - Net income for the quarter was $67.8 million, an increase of $17.1 million or 34% from the prior quarter's net income of $50.7 million [6] - Pre-tax pre-provision net revenue was $88.8 million, compared to the prior quarter of $87.9 million, an increase of $900,000 or 1% [6] - Earnings per share for the quarter was $0.61, versus $0.46 in the prior quarter [9] - Non-interest expense of $130 million decreased by $3.7 million or 3% from the prior quarter [8] - Non-interest income of $33.6 million declined by $799,000 or 2% from the prior quarter and decreased by $6.6 million or 16% from the same quarter last year [16] Business Line Data and Key Metrics Changes - The loan portfolio, excluding PPP loans, had strong organic growth during the quarter, up $407 million or 12% annualized [6] - Net interest income on a tax-equivalent basis was $190 million, with net interest income excluding PPP loans at $187 million, an increase of $3.2 million or 2% from the prior quarter [7] - Core deposits grew organically by $383 million or 7% during the quarter, with non-interest bearing deposits increasing by $211 million or 11% annualized [11] Market Data and Key Metrics Changes - Total debt securities of $10.1 billion decreased by $257 million or 2% from the prior quarter but increased by $3.7 billion or 57% from the prior year first quarter [12] - The yield on the loan portfolio ended the quarter at 4.59%, down 11 basis points from the prior quarter [14] - Non-performing assets improved to 24 basis points from 26 in the prior quarter [13] Company Strategy and Development Direction - The company aims for low double-digit growth outlook and is cautiously optimistic about future performance despite economic uncertainties [16] - The acquisition of Alta Bank is progressing well, with successful conversion to the core banking system and targeted cost savings expected to be realized in 2022 [19][20] - The company continues to focus on responsible growth with a through-the-cycle underwriting lens, particularly in commercial real estate lending [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic uncertainty caused by rising interest rates and inflation has not yet materially impacted growth outside of the residential mortgage market [16] - Concerns regarding the real estate market include the supply of homes available for sale and the impact of increasing interest rates on affordability [17][48] - Management remains comfortable with credit quality and has tightened underwriting guidelines in response to market conditions [35] Other Important Information - The company declared a regular dividend of $0.33 per share, an increase of 3% over the prior quarter [10] - The allowance for credit loss reserves remained flat at 1.28% of total loans, reflecting strong credit metrics [9] Q&A Session Summary Question: What drove the lower expenses this quarter? - Management attributed the lower expenses to controlled compensation growth and effective expense management by divisions [23][24] Question: What are the loan yields and outlook? - New loan production yields were around 4.20%, which is about 20 basis points better than the last quarter [25][26] Question: How is organic growth shaping up? - Management indicated strong growth in commercial real estate and noted that Utah remains a key growth area [30][31] Question: What are the concerns regarding credit quality? - Management is closely monitoring the consumer book due to inflationary pressures but feels prepared for the uncertain market [32][34] Question: How does the company view deposit growth going forward? - Management expects deposit growth to slow but believes the foundation of relationship accounts will remain stable [36][38] Question: What is the appetite for M&A? - Management indicated no changes in M&A appetite and remains focused on the current integration of Alta Bank [60] Question: What is the expected tax rate for the year? - The expected tax rate is projected to be between 19% and 20% [61] Question: Is there a qualitative adjustment in the reserve? - Management confirmed there is a qualitative component but does not expect significant adjustments [62]