Glacier Bancorp, Inc. (NASDAQ:GBCI) Q4 2019 Earnings Conference Call - Final Transcript

Jan 24, 2020 • 11:00 am ET

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Glacier Bancorp, Inc. (NASDAQ:GBCI) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Randall M. Chesler

from the prior year fourth quarter of $9.8 million, or 20%.

On a full year basis, net income was $211 million, a 16% increase over the prior year. Crossing that $200 million income mark on a full year basis was a great milestone to [Phonetic] be achieved at year-end. Diluted earnings per share for the quarter were $0.62. That's an increase of 5% over the prior year fourth quarter, including acquisition-related expenses.

On a full year basis, earnings per share were $2.38, an increase of 10% from the prior year. For the quarter, core organic loan balances were essentially flat decreasing 30 basis points, or $28 million to $9.5 billion. On a full year basis, the loan portfolio grew organically 4% or $364 million.

Core deposit balances for the quarter were essentially flat as well, declining 10 basis points or $10.8 million to $10.7 billion. On a full year basis, core deposits grew 4% or $401 million. Return on assets was 1.67% for the quarter and 1.64% for the full year. That's up five basis points from 2018. Tangible book value per share of $15.61 at quarter end increased $0.08 per share from the prior quarter and increased $1.68 per share from a year ago.

For the full year, tangible equity increased $264 million or 22%. And we declared a regular dividend of $0.29 per share, our 139th consecutive quarterly dividend and declared $1.11 in regular dividends per share for the full year, which was a 10% increase over prior year's regular dividends. We also declared a special dividend of $0.20 per share, which was the 16th special dividend declared.

2019 was a record year for acquisitions too. We announced three transactions with combined assets in excess of $2 billion. We've already closed Heritage Bank of Nevada and First National Bank of Layton, with combined assets totaling $1.4 billion and have received all regulatory approvals to close State Bank of Arizona with assets of $678 million at the end of February.

First National Bank of Layton now named First Community Bank of Utah was converted over to our core processing system in the fourth quarter and the four Glacier branches already in Utah were added to the division as well. We expect to convert State Bank of Arizona and Heritage Bank in the first half of 2020. Our key credit quality ratios improved in almost all categories across the board, reflecting the strength of our loan portfolio. Early stage delinquencies as a percentage of loans at the end of the fourth quarter were 24 basis points, a decrease of seven basis points from the prior quarter and down 17 basis points from the prior year fourth quarter.

Net charge-offs for the quarter were $1 million, compared to $2.5 million in the fourth quarter a year ago. And most notably, non-performing assets as a percentage of subsidiary assets at the end of the fourth quarter were 27 basis points, which is a -- which is 13 basis points lower than the