Glacier Bancorp, Inc. (NASDAQ:GBCI) Q2 2019 Earnings Conference Call - Final Transcript

Jul 19, 2019 • 11:00 am ET

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Glacier Bancorp, Inc. (NASDAQ:GBCI) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Randall M. Chesler

And the loan portfolio ended the quarter at $8.8 billion.

We still feel good about our 8% loan growth target for the year as our western markets remain healthy and active and our unique business model remains extremely effective. Total investment securities of $2.7 billion, decreased $55 million or 2% during the current quarter and decreased $75 million or 3% from the prior-year second quarter. Investment securities represent 21% of total assets at the end of the quarter compared to 24% at the end of the second quarter a year ago.

Once again, our key credit quality ratios improved in almost all categories across the board. Our talented team of credit professionals continued to do a great job in this area. Early stage delinquencies, as a percentage of loans, at the end of the second quarter were 43 basis points, a decrease of 7 basis points from the prior-year second quarter. Net charge-offs for the quarter were $732,000 compared to $762,000 in the second quarter a year ago. Non-performing assets as a percentage of subsidiary assets at the end of the second quarter were 41 basis points, which is 1 basis point lower than the prior quarter and 30 basis points lower than the prior-year second quarter. At the end of the quarter, the dollar amount of NPAs were $51.9 million, an increase of $1.1 million or 2% from the prior quarter, but the increase was primarily driven by the acquisition that was added in the quarter.

Number of our divisions and divisions' Presidents did an excellent job working through these difficult credits and we expect NPAs to remain stable around this level as we move forward. Of course, there is always the potential for a one-off surprise addition but we remain confident and being able to maintain the low current level.

The allowance for loan and lease losses as a percentage of total loans outstanding at the end of the quarter was 1.46%, which is down 10 basis points from the prior quarter and down 20 basis points from the second quarter a year ago. Provision for loan losses was $0 versus $57,000 in the prior quarter. This reflects our continued very positive outlook on the portfolio and our markets.

Core deposits ended the quarter at $9.7 billion. Total core deposits were organically up 2% annualized or $40 million and increased $184 million or 2% from the quarter a year ago. Non-interest bearing deposits organically were up $120 million or 16% annualized and increased $257 million or 9% over the prior-year second quarter. We've been focusing on growing our share of non-interest deposits for some time now and are pleased to see the growth trend. The cost of our core deposits was stable at 19 basis points unchanged compared to the prior quarter and up 3 basis points from the prior-year second quarter.

We ended the quarter with a loan to deposit ratio of 90.27%, up from 87.14% at the end of the prior quarter. The total cost of