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

stable and low-cost core funding foundation will continue to support us very well with increasing net income even if our NIM is slightly reduced.

Non-interest income for the quarter totaled $30.8 million, up 8% or $2.4 million from the prior quarter and decreased $994,000 or 3% over the same quarter last year. We had some one-time items last year, which caused a decrease compared to the prior year. Service charges and other fees of $20 million increased $2 million or 11% from the prior quarter, primarily due to seasonality. Gain on sale of loans of $7.8 million increased $2 million or 4% due to seasonality as the second quarter generally marks the beginning of the peak real estate activity in our markets.

Non-interest expense for the quarter of $86.2 million increased $3.3 million or 4% from the prior quarter and increased $4.4 million or 5% from the prior-year second quarter. Comp and employee benefits were up $2.9 million or 6% from the prior year, primarily due to acquisitions and organic growth, which required more employees. Other expenses of $15.3 million increased $3 million or 25% from the prior quarter, primarily due to acquisition-related expenses. Acquisition-related expenses were $1.8 million during the current quarter compared to $214,000 in the prior quarter and $2.9 million in the prior quarter -- in the prior-year second quarter.

Tax expense for the quarter was $12.6 million, an increase of $900,000 or 8% compared to the prior quarter and $3.1 million or 33% from the prior-year second quarter. Our effective tax rate in the second quarter was 19% compared to 18% in the prior-year second quarter. The current quarter efficiency ratio was 54.5%, an 87 basis point improvement over the prior quarter efficiency ratio and a 94 basis point improvement over the prior quarter a year ago. We believe we're on track to meet our full-year efficiency ratio targeted between 54% and 55%.

So the second quarter represents another excellent performance by the Company. In addition, delivering -- to delivering a solid performance for the quarter, the Company announced the acquisition of Heritage Bank of Reno, Nevada, and as I previously noted, Heritage Bank and First National Bank of Layton, which closed at the end of April, will add over $1.1 billion in assets in 2019. We have received all regulatory approvals to proceed with the closing in the Heritage Bank of Reno, which will occur as planned at the end of this month.

Our 15 division Presidents and their teams across our seven states, as well as our senior staff continue to produce market-leading results and I would like to thank them all for their commitment and drive to be the best.

So, Joelle, that ends my formal remarks, and I'd like to now ask you to open the line for any questions that our analysts may have.