Glacier Bancorp(US:GBCI)2023-04-21 19:01Financial Data and Key Metrics Changes - Stockholders' equity increased by $83.6 million or 3% to $2.9 billion during the current quarter [11] - Tangible book value per common share rose by $0.76 or 5% to $17.16 from the prior quarter [11] - Interest income for the quarter was $232 million, up $6.8 million or 3% from the prior quarter and increased by $41.4 million or 22% year-over-year [17] - The loan portfolio increased by $272 million or 7% annualized during the current quarter, reaching $15.5 billion [17] - Non-performing assets as a percentage of subsidiary assets improved to 0.12% from 0.24% in the prior year [18] Business Line Data and Key Metrics Changes - Core deposit funding totaled $20 billion, accounting for almost 85% of total funding liabilities, with a cost of 23 basis points compared to 8 basis points in the prior quarter [13] - New production yields for the quarter were 6.96%, up 62 basis points from the last quarter [12] Market Data and Key Metrics Changes - The company reported a strong liquidity position with $15.1 billion available through various channels [12] - Deposits grew during March, despite the banking crisis, indicating stability in the company's deposit base [6] Company Strategy and Development Direction - The company aims to leverage its unique business model and strong local relationships to navigate the current banking environment [5] - Management expressed confidence in the dynamic western markets served and the potential for M&A opportunities due to current industry headwinds [16][43] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality continues to perform at record levels with little signs of deterioration [16] - The company anticipates some growth in deposits in the second and third quarters, followed by potential outflows in the fourth quarter [19] - Management expects to fund growth primarily through cash flow from the investment portfolio [19] Other Important Information - The company declared a quarterly dividend of $0.33 per share, marking 152 consecutive quarterly dividends [13] - The investment portfolio is structured to generate cash flow and is designed to be shorter in duration [10] Q&A Session Summary Question: Deposit flow drivers and outflows - Management indicated that $600 million of core deposits and repo declined, primarily due to rate-driven factors in January, but stabilized and grew in March [26][27] Question: Early second quarter deposit trends - Management noted typical tax-related flows with some increases in early April, followed by outflows related to tax payments [30] Question: Loan growth expectations - Management expects loan growth to slow in the coming quarters, projecting growth on the low end of the mid-single digit range for the year [40] Question: M&A activity in the banking industry - Management believes current headwinds in the banking industry may motivate M&A activity, presenting opportunities for the company [43] Question: Margin expectations - Management indicated that the margin for the first quarter was 3.08%, with expectations for stability moving forward [44] Question: Expense management expectations - Management provided guidance for non-interest expenses to be between $135 million and $137 million for the remaining quarters of the year [57] Question: Office exposure and underwriting standards - Management reported that total office exposure is about 9.6% of the total portfolio, with a focus on maintaining conservative underwriting standards [93]