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

Jul 19, 2019 • 11:00 am ET


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


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Good day, ladies and gentlemen, and welcome to the Glacier Bancorp Second Quarter Earnings Conference Call. [Operator Instructions] I would now like to introduce your host for today's conference, Mr. Randy Chesler, President and CEO. Sir, you may begin.

Randall M. Chesler

All right. Thank you, Joelle, and good morning, and thank you for joining us today. With me here in Kalispell this morning is Ron Copher, our Chief Financial Officer; Don Cherry, our Chief Administrative Officer; Angela Dose, our Chief Accounting Officer; Tom Dolan, our Deputy Chief Credit Administrator; and joining us by phone is Barry Johnston, our Chief Credit Administrator.

So let me first thank you all for joining us today, and hope you all enjoying the summer. Yesterday, we released our second quarter 2019 results. This was a very strong quarter for us with well-balanced performance across the business.

Some highlights and details from the quarter. Earnings were $52.4 million, which was an $8 million or 18% increase over the prior-year second quarter. Diluted earnings per share for the quarter were $0.61, an increase of 17% over the prior-year second quarter. Organic loan balances increased $270 million or 13% annualized. We also had organic core deposit growth of $40.1 million or 2% annualized. Organic non-interest deposit growth was a very strong $120 million or 16% annualized. Net interest margin for the quarter was 4.33% of earning assets, which was stable, down just 1 basis point over the prior quarter. Our loan yields increased 2 basis points from the prior quarter to 5.20% and our cost of core deposits was unchanged. The net interest margin was up 16 basis points over the second quarter a year ago.

Return on assets was a very strong 1.69% for the quarter, a 2 basis points increase over the prior quarter. Tangible book value per share of $15.03 at quarter end increased $0.68 per share from the prior quarter and $1.64 per share from a year ago. We also declared a regular dividend of $0.27 per share, our 137th consecutive quarterly dividend, which was a 4% increase over the prior quarter. And at the end of April, we successfully closed on the acquisition of First National Bank in Layton, Utah, now named First Community Bank of Utah. This is our 15th division and our first standalone division in Utah. We now have a leading market position in Davis County and a strong team to help us grow, and we're very excited to welcome First Community Bank to the Glacier team.

We also received all regulatory approvals on our acquisition of Heritage Bank in Reno, Nevada. This is a great community bank, one of the best performers in the industry with a great team and a stable, low-cost deposit base with excellent high-quality, high-margin loans. We expect to close this transaction at the end of July.

Loan production for the first quarter was $990 million, which was once again generally well distributed among all our divisions. Loan pay-downs were $719 million, which is consistent with past seasonality.