Glacier Bancorp, Inc. (NASDAQ:GBCI) Q3 2020 Earnings Conference Call - Final Transcript

Oct 23, 2020 • 11:00 am ET

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Glacier Bancorp, Inc. (NASDAQ:GBCI) Q3 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Our first question comes from Jeff Rulis of D.A. Davidson. Your line is open.

Analyst
Jeffrey Rulis

Good morning.

Executive
Randall M. Chesler

Good morning, Jeff.

Analyst
Jeffrey Rulis

Randy, maybe I'll just follow up on the last bit there. Clearly a unique year and certainly M&A is quiet for the time being, or maybe not. But looking at the dividend last couple of years, you've put out a special in the fourth quarter. So, again, a different year. But any thoughts of entertaining that and noting that the penny increase to the regular dividend that's on the special and any sort of M&A that could be percolating?

Executive
Randall M. Chesler

Sure. So the special that's early, that's all is evaluated at the end of the year by our Board and that's a decision they make, and I'd say in this environment, you know, we're going to have to just see what the landscape looks like at that point in terms of our current capital levels, the feeling of how we're feeling about going forward. So I think that's, you know, a Board review decision that will certainly take place at the end of the year. But difficult to tell and especially this year, Jeff, with so much uncertainty, we'll just have to see at that time.

We were pleased to increase the dividend a penny a share to 3.4% and you can see our dividend payout ratio is quite low. So we're very comfortable where we are and as I noted, dividends will continue to be a very important part of our excess capital management approach. As it relates to M&A, you're correct that, you know, the pause button was hit earlier this year across the board. I think that we're beginning to reopen dialogue with a number of interested folks and we are hopeful that in the beginning, kind of middle of next year will be in a better position to hopefully move forward or make an announcement. We just don't know, it's still a little bit early, but I think there's a lot of encouraging signs.

We feel a lot more comfortable with our understanding of our own portfolio and our ability to evaluate a potential seller's portfolio. So, those conversations are beginning to reopen, and we'll see where they lead us where. What hasn't changed is our very disciplined approach to M&A and targets. And so we'll pick up where we left off almost a year ago now.

Analyst
Jeffrey Rulis

Okay, and a question on the mortgage side. The NBA forecast has got volumes down maybe 20%-ish next year. Any reason to think that your experience will be any different in '21? Seems like pretty good demand. It's a different dynamic in the footprint, just starts on the mortgage outlook next year.

Executive
Randall M. Chesler

Yeah, I think that the overall trend in the industry is going to be down a bit after an incredible year this year, and especially for us. I think we'll see that, but probably maybe less so than the national because of our footprint and our location and