Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Glacier Bancorp Inc (GBCI, Financial) reported a significant increase in diluted earnings per share, up 66% from the prior year.
- Net income for the quarter rose by 67% compared to the previous year, reaching $54.6 million.
- The net interest margin improved for the fifth consecutive quarter, surpassing 3% for the first time in two years.
- The company declared a quarterly dividend of $0.33 per share, marking 160 consecutive quarterly dividends.
- Glacier Bancorp Inc (GBCI) successfully closed and converted two acquisitions in 2024, expanding its asset base by approximately $1.2 billion.
Negative Points
- Total loans decreased by $48 million from the prior quarter due to accelerated payoffs.
- The allowance for credit loss was increased to 1.22% of total loans due to economic uncertainty.
- Non-interest expense remained flat compared to the previous year, indicating limited cost reduction.
- The company experienced an uptick in non-accruals, primarily due to a management issue in a C&I credit.
- There is ongoing uncertainty in the economy, which could impact future loan growth and project developments.
Q & A Highlights
Q: Can you provide more detail on the margin progression and the impact of the Bank of Idaho acquisition?
A: Byron Pollan, Treasurer and Senior Vice President, explained that the structural drivers for margin growth remain strong, including elevated securities runoff and loan repricing. The Bank of Idaho acquisition is expected to contribute approximately 4 basis points of margin lift. The margin trajectory is not dependent on Federal Reserve actions, and the full-year guidance remains at $320 million to $325 million.
Q: What is the outlook for non-interest expenses, especially with the Bank of Idaho acquisition?
A: Ron Copher, Chief Financial Officer, stated that the core non-interest expense guide for 2025 is $151 million to $154 million per quarter. The Bank of Idaho will add $9 million to $10 million per quarter in expenses. For the second quarter, an additional $6 million should be added to the guidance, resulting in a range of $157 million to $158 million.
Q: Can you provide insights into the recent uptick in non-accruals?
A: Tom Dolan, Chief Credit Officer, noted that the increase was due to one commercial and industrial (C&I) credit, which was a management issue rather than market-based. The credit is well-secured, and no loss is expected, with an anticipated resolution by year-end.
Q: How are tariffs on Canadian lumber affecting your construction activity?
A: Randall Chesler, President and CEO, mentioned that while costs are expected to rise, customers have not indicated significant distress. They are managing costs within reason, and construction projects are continuing as planned. Tom Dolan added that construction budgets are showing more conservatism, with additional cash equity being injected upfront.
Q: What is the competitive landscape for new loan yields and spreads?
A: Tom Dolan stated that Glacier Bancorp maintains good spreads on loan production, particularly in markets where they have a leading market share. While there is competition in larger markets, they have not seen irrational underwriting practices. New origination yields are trending around 300 basis points over the 5-year part of the curve.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
