Glacier Bancorp, Inc. (NASDAQ:GBCI) Q3 2019 Earnings Conference Call - Final Transcript
Oct 18, 2019 • 11:00 am ET
one, just the mortgage banking kind of gain on sale, pretty robust. Obviously, we're -- we'll expect some seasonality, but any thoughts on how that's going quarter-to-date and maybe your thoughts on the out-year as well?
Yes, no, we're very happy, pretty -- very, very strong record quarter for us in terms of the volume, continues to look strong coming into the fourth quarter. So, probably not quite as strong as our third quarter, but pretty good strength across the board. So, we see -- we should see, some good -- good strength continue there.
Okay, thank you.
All right, you bet.
Sir, we have our next question on the line from Matthew Clark from Piper Jaffray. Your line is open.
Good morning, Matthew.
Good morning. Maybe first one just on the securities that were sold this quarter. Can you give us a sense for the kind of the weighted average yield on that portion that was sold just trying to get a sense for what's rolled off relative to what's -- what still on the books?
Yes, Matt, it's Ron. So, the weighted average yield was basically 2.94%. We sold just some of the longer-dated munis, but very few, the predominant portion of what we sold was the lower yielding agency securities including some of the agencies that we had from the Heritage acquisition. So in terms of reinvesting that, we're just about halfway done with that and the -- overall, the metrics of the portfolio really haven't changed much. The yield came down maybe 3 basis points when you look at it Q3 over Q2. But in terms of duration weighted average life, it's pretty consistent with what we had at the end of the second quarter. I would also take note that we've built our cash position, so we still got that to hopefully reinvest or even pay down some higher cost deposits we have.
Okay. And then just on deposit costs, have you stabilized pricing at this point? Or do you feel like there's still some upward pressure in terms of exception pricing in deposit rates?
Yes, I would probably say, feel pretty stabilized, we've seen a lot less request for interest rate exceptions. So I think the market has settled down quite a bit. There is still always the one-off kind of circumstance, but generally, Matthew, I'd say it's stabilized quite a bit.
Okay. And then just on charge-offs and credit in general, the $1.9 million loss on the short sale. Is there more clean-up work to be done here, where we might see some lumpy charge-offs or is that process largely complete at this point?
Yes, they are -- we don't see. We don't have a pipeline of credits to work. This one had been in the portfolio for quite a while, had been troubled in the past and we just -- the point I was -- I made in my comments were, we just feel now is the time to get a little