Glacier Bancorp(US:GBCI)2024-01-26 20:18Financial Data and Key Metrics Changes - Earnings per share for Q4 2023 was $0.49, an increase of $0.02 from the prior quarter [5] - Net income for the current quarter was $54.3 million, up $1.9 million or 4% from the prior quarter [5] - Interest income reached $273 million, increasing by $8.6 million or 3% over the prior quarter [5] - Total non-interest expense was $132 million, including a one-time $6 million FDIC special assessment, which increased by $2.6 million or 2% from the prior quarter [6] - Stockholders' equity increased by $146 million for the quarter, or 5%, totaling $3 billion [10] Business Line Data and Key Metrics Changes - Portfolio loan yield increased to 5.34%, up 7 basis points from the prior quarter [6] - New loan production yields were 8.24%, up 32 basis points from the last quarter [6] - Non-performing assets decreased by $16.7 million, or 39%, to 9 basis points of assets [7] Market Data and Key Metrics Changes - Core deposits and retail purchase agreements decreased by $108 million, or 50 basis points from the prior year-end [9] - The company ended the year with $1.3 billion in cash, an increase of $952 million over the prior year-end [9] Company Strategy and Development Direction - The company received regulatory approvals for the acquisition of Wheatland Bank, which will be its 25th acquisition since 2000 [11] - The management expressed confidence in being well-positioned for a strong 2024 despite industry volatility [12] Management's Comments on Operating Environment and Future Outlook - Management noted significant volatility in the banking industry in 2023 but emphasized strong customer care and community support [12] - The company expects to see stabilization in net interest margin (NIM) and anticipates an inflection point in Q2 2024 [62] - The outlook for 2024 NII is projected to be between $280 million and $290 million, assuming three rate cuts throughout the year [63] Other Important Information - The allowance for credit losses as a percentage of total loans outstanding was 1.19%, unchanged from the prior quarter [8] - The company declared a quarterly dividend of $0.33 per share, marking 155 consecutive quarterly dividends [10] Q&A Session Summary Question: Can you speak to the run rate of expenses going forward? - Management indicated that the guidance for Q1, excluding Wheatland, would be $138 million to $140 million, with a total including Wheatland at $144 million to $146 million [17][66] Question: What are your expectations for deposit flows? - The company expects total deposits to remain flat in 2024, with some seasonal outflows anticipated in Q1 [34][100] Question: How do you view loan growth going forward? - Management noted that loan growth has slowed due to a more selective approach and cautious borrowers, projecting low to mid-single-digit growth for 2024 [51] Question: What are your plans regarding the $2.7 billion BTFP? - The company plans to refinance $940 million of BTFP balances in March, with options available for the remaining amount [58] Question: How do you expect the margin to trend in 2024? - Management expects continued stabilization in Q1, with potential growth in NIM later in the year, particularly with the acquisition of Wheatland [62][63]