Glacier Bancorp(US:GBCI)2023-07-21 17:35Financial Data and Key Metrics Changes - Total deposits and retail purchase agreements reached $21.3 billion, increasing by $25.5 million or 12 basis points during the current quarter [37] - Interest income for the current quarter was $247 million, an increase of $15.5 million or 7% from the prior quarter [38] - Net income for the current quarter was $55 million, a decrease of $6.2 million or 10% from the prior quarter [38] - Total non-interest expense was $131 million, a decrease of $4.4 million or 3% from the prior quarter [39] - Non-interest income totaled $29.1 million, an increase of $1.2 million or 4% over the prior quarter [39] - The loan portfolio increased to $15.9 billion, up $436 million or 11% annualized during the current quarter [40] - Stockholder equity increased by $83.2 million or 3% during the first six months of the current year [41] - Tangible book value per common share was $17.16, an increase of 2 basis points from the prior quarter [42] Business Line Data and Key Metrics Changes - Loan yield for the current quarter was 5.12%, an increase of 10 basis points from the prior quarter [40] - New loan production yields for the quarter were 7.37%, up 41 basis points from the last quarter [40] - The company maintained a concentration of greater than 30% in non-interest bearing total deposits [28] Market Data and Key Metrics Changes - The company reported a strong liquidity position with over $15 billion available, including cash borrowing capacity from various sources [42] - The Federal Reserve's rate increases have influenced deposit behavior, with a through-the-cycle beta for core deposits at 10% [45] Company Strategy and Development Direction - The company remains optimistic about its long-term position despite industry headwinds, leveraging its banking model and M&A expertise [35] - Focus on maintaining and growing deposits through attractive rate options and technology-driven marketing strategies [43] - The company aims to continue strong loan growth, particularly in residential and construction loans [47] Management's Comments on Operating Environment and Future Outlook - Management expects net interest margin (NIM) pressure to moderate, with higher loan yields contributing to interest income growth [46] - The company anticipates a slight increase in total assets by year-end due to loan growth and deposit expectations [21] - Management expressed confidence in the dynamic Western markets served and the effectiveness of their business model [49] Other Important Information - The company declared a $0.33 per share dividend, marking the 153rd consecutive quarterly dividend [42] - The company has reduced full-time employees (FTE) by 70 year-over-year, reflecting a focus on efficiency [60] Q&A Session Summary Question: What are the expectations for deposit betas? - Management indicated that the through-the-cycle beta for total deposits is now estimated at 25% due to changes in the Fed's rate outlook [64] Question: What is the outlook for net interest income (NII)? - Management stated that NII stabilization is expected once the Fed's rate hikes conclude, with a potential lag of a quarter or two [122] Question: How is the company managing expenses? - Management confirmed that there were no one-time expenses in the current quarter's operating costs, and they are focused on mindful hiring [60] Question: What is the status of the construction loan portfolio? - Management noted that the majority of loan growth was due to construction draws, with expectations for a deceleration in growth as projects complete [101] Question: How is the company addressing deposit growth? - Management highlighted the success in attracting new accounts and emphasized the importance of deposit relationships with loan customers [96]