Glacier Bancorp(US:GBCI)2020-11-01 11:16Financial Data and Key Metrics Changes - The company reported a net income of $11.3 million for Q3 2020, compared to $10.3 million in Q2 2020 and $11.1 million in Q3 2019 [30] - Diluted earnings per share were $0.60 for Q3 2020, up from $0.55 in Q2 2020 and $0.59 in Q3 2019 [31] - Total assets grew by $731 million or 30% year-over-year to $3.2 billion at the end of the quarter [34] - Total deposits increased by $615 million or 29% to $2.72 billion at September 30 [34] Business Line Data and Key Metrics Changes - Loans held for investment grew by $22 million or 1.3% to $1.7 billion at September 30 [37] - Non-interest income increased by $1.7 million or 37% to $6.1 million for Q3 compared to $4.5 million for the same period a year earlier, primarily due to a significant increase in mortgage banking income [60] - Non-interest expense was $16.9 million for Q3, compared to $16.1 million for the same period a year earlier [63] Market Data and Key Metrics Changes - The unemployment rate in Utah was 5% at September 30, significantly lower than the national rate of 7.9% [27] - Nationally, total jobs decreased by 6.4% year-over-year at September 30, while Utah jobs decreased only 0.9% [28] Company Strategy and Development Direction - The company aims to continue providing financial relief to clients impacted by the pandemic and plans to participate in additional funding for SBA PPP loans [7] - There is a focus on enhancing technology and operational efficiency to improve client experience and reduce costs [66] - The company is actively looking for acquisition opportunities to leverage its platform and expand its market presence [91] Management's Comments on Operating Environment and Future Outlook - Management expects asset quality trends to deteriorate and charge-offs to increase beginning in 2021 as government stimulus effects wane [22] - The company believes its allowance for credit losses is adequate to cover expected losses, but will continue to monitor macroeconomic conditions closely [23] - Management expressed confidence in the strength of the balance sheet and the ability to withstand the negative effects of the pandemic [24] Other Important Information - The Board of Directors declared a quarterly dividend payment of $0.15 per common share, continuing a trend of over 50 years of dividend payments [32] - The allowance for credit losses increased by $11 million or 36% to $41.5 million at September 30 [38] Q&A Session Summary Question: What was the average rate on new loans for this quarter? - The average rate on new loans was around 5% for the quarter [75] Question: What is the outlook for loan growth and pipeline heading into the fourth quarter? - The company has enhanced its credit process and expects to see continued production growth, although the fourth quarter is typically slower [78] Question: How does the company plan to drive operating leverage while maintaining a high-touch client experience? - The company is committed to technology investments and believes that expanding its commercial lending platform will help drive growth [88] Question: What are the company's thoughts on capital return and buybacks? - The company is focused on organic growth first, followed by acquisitions, and will consider buybacks as credit conditions stabilize [104]