Glacier Bancorp(US:GBCI)2021-10-22 21:17Financial Data and Key Metrics Changes - Net income for the first nine months of the year was $234 million, an increase of $50 million or 27% from the $185 million in the first nine months of the prior year [6] - Pre-tax pre-provision income was $285 million for the first nine months of the current year, an increase of $18 million or 7% compared to the $266 million in the prior year [6] - Net interest income, excluding PPP loans for the current quarter, was $154 million, an increase of $4.6 million or 3% from the prior quarter [7] - Efficiency ratio for the current quarter was 50.17%, compared to 49.92% in the prior quarter [20] Business Line Data and Key Metrics Changes - The loan portfolio, excluding Payroll Protection Program loans, had strong growth of $382 million or 14% annualized [5] - Core deposits grew $742 million or 18% during the quarter and $2.7 billion or 25% annualized from the beginning of the year [5] - Non-performing assets decreased $1.9 million or 4% from the prior quarter, ending the quarter at $51.2 million [8] Market Data and Key Metrics Changes - Excellent loan growth was observed in Wyoming, Arizona, and Idaho, with total market growth of $382 million or 14% annualized, excluding PPP loans [10] - Non-interest bearing deposits increased $325 million or 5% over the last quarter and $1.2 billion or 21% from the prior year third quarter [15] Company Strategy and Development Direction - The company is focused on disciplined lending and risk management strategies while avoiding a race to the bottom on credit [12] - The merger with Altabancorp is proceeding well, with a focus on integration and leveraging Altabancorp's technology platform [21][22] - The company aims to maintain a strong pipeline of new loans and is optimistic about closing out 2021 with growth closer to 8% to 10% [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan growth momentum entering the fourth quarter and the strong pipeline of new loans [13][23] - The company is optimistic about 2022, citing strong market conditions and business formation trends in their footprint [50] Other Important Information - The company declared a quarterly dividend of $0.32 a share, marking 146 consecutive quarterly dividends [9] - The net interest margin for the current quarter was 3.39%, down from 3.44% in the prior quarter [17] Q&A Session Summary Question: Health of the portfolio at Altabancorp - The portfolio is healthy, with non-performing assets at 15 basis points, and the credit cultures of both banks are similar, facilitating integration [29] Question: Growth potential of Altabancorp - Altabancorp is well-positioned for growth, leveraging Glacier's resources and the strong economic environment in Utah [30][31] Question: Expense outlook post-merger - Excluding merger-related expenses, the estimated run rate for the fourth quarter is $122 million to $125 million, with potential cost savings in 2022 [32] Question: Trends in mortgage business - The mortgage business is expected to perform well, with a forecasted decline in origination volumes being less severe than industry predictions due to the addition of Altabancorp [39] Question: Competition in commercial real estate - There is strong competition in pricing, especially in larger metro markets, but the company maintains a focus on credit quality [43] Question: Business formation trends - There is an increase in business relocations and expansions within the footprint, particularly in Arizona, which is attracting businesses from California [49]