GLACIER BANCORP, INC. Q1 FY2025 earnings call

• Margin expansion continued with net interest margin at 3.04%, up 45 basis points from prior year, and expected to continue. - Expense control was solid with noninterest expense flat to prior year first quarter. - Credit performance excellent but allowance for credit loss increased to 1.22% of total loans due to economic uncertainty. - Acquisitions: Closed two in 2024, acquired Rocky Mountain Bank branches and Wheatland Bank, and expect to close Bank of Idaho acquisition end of April. - Declared a quarterly dividend of 33¢ per share, 60 consecutive quarterly dividends declared.

Net income for the current quarter was $54.6 million, an increase of $21.9 million or 67% from the prior year first quarter. Diluted earnings per share was $0.48 per share, an increase of 66% from the prior year first quarter. Net interest margin as a percentage of earning assets on a tax-equivalent basis was 3.04%, an increase of 45 basis points from the prior year first quarter. Total deposits were $20.6 billion, increasing $87.1 million or 2% annualized. Total loans were $17 billion, decreasing $48 million from the prior quarter due to accelerated payoffs. Noninterest expense was $153 million, flat to prior year first quarter. Noninterest income was $33 million, increasing 9% versus prior year first quarter. Allowance for credit loss increased to 1.22% of total loans from 1.19% last quarter. Tangible stockholders' equity was $2.2 billion, increasing $147 million or 7% compared to prior year first quarter. Tangible book value per common share was $19.28, increasing $1.28 per share or 7% from prior year first quarter.

• Margin expected to continue increasing with full-year guide 3.20-3.25%. - Bank of Idaho acquisition expected to contribute 4 basis points to margin. - Core noninterest expense guide: $151-154 million per quarter, with Bank of Idaho closing affecting second, third, fourth quarters. - Loan growth outlook: low to mid single digits, pipeline strong.

• Economic uncertainty posing potential credit deterioration. - Impact of tariffs on construction activity, though customers reporting manageable impact so far.

Q: Reorient on margin discussion, loan repricing, structural margin progression.

A: Byron Pollan discussed margin growth continuing, elevated runoff, FHLB borrowings paydown, loan repricing, and Bank of Idaho contribution.

Q: Bank of Idaho deal, core margin and accretion.

A: Byron Pollan stated Bank of Idaho expected to contribute 4 basis points, with accretion ballpark.

Q: Expense guide, Bank of Idaho closing impact.

A: Ron Copher talked about core noninterest expense guide and Bank of Idaho closing date change affecting second, third, fourth quarters.

Q: Southwest M&A interest.

A: Randy Chesler mentioned ongoing conversations in Southwest and Mountain West.

Q: Spot rate on deposits, nonaccruals, tariffs on Canadian lumber.

A: Byron on spot rate, Tom Dolan on nonaccruals, Randy Chesler on tariffs impact.

Q: FHLB borrowings maturity, Bank of Idaho integration date, M&A in Southwest.

A: Byron on FHLB maturities, Randy on Bank of Idaho conversion date, Randy on M&A strategy.

Q: Margin exit, loan growth.

A: Byron on margin exit, Tom Dolan on loan growth pipeline.

Q: Underwriting in uncertain times, M&A optimism.

A: Tom Dolan on underwriting through-the-cycle, Randy Chesler on M&A optimism.

Q: Segments watching, competitive landscape.

A: Tom Dolan on segments, Tom Dolan on competitive spreads.