Glacier Bancorp(GBCI)2025-04-25 21:09Financial Data and Key Metrics Changes - Diluted earnings per share for the current quarter was 54.6 million for the current quarter, an increase of 20.6 billion increased by 17 billion decreased by 33 million, which increased 9% versus the first quarter a year ago [9] - Tangible stockholders' equity of 67 million or 3% compared to the prior quarter [11] Business Line Data and Key Metrics Changes - The margin has increased for five consecutive quarters, with expectations for continued growth throughout the year [6] - The total cost of funding, including noninterest-bearing deposits, was 1.68% in the current quarter, decreasing three basis points from the prior quarter [6] - The loan yield of 5.77% in the current quarter increased five basis points from the prior quarter and increased 31 basis points from the prior year first quarter [6] Market Data and Key Metrics Changes - Customers acknowledge uncertainty in the economy but have not indicated plans to pull back on projects [8] - The credit portfolio continues to perform at near record levels, with an allowance for credit loss increased to 1.22% of total loans from 1.19% last quarter [10] Company Strategy and Development Direction - The company is strategically expanding its presence through acquisitions, including the proposed acquisition of Bank of Idaho, which is expected to close at the end of the month [13][14] - The company has demonstrated the ability to find good banks and markets to partner with, regardless of the broader M&A environment [15] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future despite current economic uncertainties and does not expect material credit deterioration [10] - The company expects to maintain a core noninterest expense guide of 152 million per quarter for the remainder of 2025 [31] Other Important Information - The company declared a quarterly dividend of 33¢ per share, marking 60 consecutive quarterly dividends [12] - The company is maintaining a strong pipeline for loan growth, with expectations for low to mid single-digit growth for the year [78] Q&A Session Summary Question: Margin discussion and structural margin progression - Management confirmed that structural drivers for margin growth are still in place, with expectations for continued growth throughout the year [20][24] Question: Bank of Idaho deal and expected margin contribution - The Bank of Idaho is expected to contribute four basis points of margin lift to the organization [26] Question: Expense guidance and performance-based compensation - Core noninterest expense guidance for 2025 is reiterated at 154 million per quarter, with adjustments for the Bank of Idaho acquisition [28][33] Question: M&A discussions in Southwest markets - Management confirmed ongoing conversations in the Southwest and Mountain West regions, with a focus on finding the right partners [36][38] Question: Spot rate on deposits and average margin - The spot rate at March 31 was 1.24%, and the margin for March was 3.05% [44] Question: Nonaccruals and credit issues - Nonaccruals were centered in one relationship, with no expected loss [46] Question: Impact of tariffs on construction activity - Customers are managing costs effectively, and there is no significant distress reported [49][50] Question: FHLB borrowings and balance sheet expectations - Management provided details on FHLB borrowings maturing throughout the year and expectations for using cash flow to pay down borrowings [59][60] Question: Competitive landscape and loan yields - The company maintains good spreads on production and has not seen irrational underwriting practices [100][101]