Glacier Bancorp, Inc. (NYSE:GBCI) Q2 2022 Earnings Conference Call July 22, 2022 11:00 AM ET

Company Participants

Randall Chesler - President and Chief Executive Officer

Ron Copher - Chief Financial Officer

Tom Dolan - Chief Credit Administrator

Byron Pollan - Treasurer

Conference Call Participants

Matthew Clark - Piper Sandler

David Feaster - Raymond James

Brandon King - Truist Securities

Andrew Terrell - Stephens

Jeff Rulis - D.A. Davidson

Operator

Good day. And thank you for standing by. Welcome to the Glacier Bancorp Second Quarter Earnings Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Mr. Randy Chesler, President and CEO. Please go ahead.

Randall Chesler

All right. Well, thank you and good morning and thank you for joining us today. With me here in Kalispell this morning is Ron Copher, our Chief Financial Officer; Don Cherry, our Chief Administrative Officer; Angela Dose, our Chief Accounting Officer, Byron Pollen, our treasury and Tom Dolan, our Chief Credit Administrator.

So we ended the quarter, the second quarter feeling very good about the strength and health of our core business. Our leadership position in some of the best high growth markets in the country continues to be a strong tailwind for the company, as we build one of the premier community banks in the Western United States. A few data points about our Community Banking Markets, which include Montana, Idaho, Eastern Washington, Wyoming, Utah, Colorado, and Nevada and Arizona. The Tax Foundation recently published the 2022 tax climate index and all eight of the states in which we operate were in the Top 20 most favorable markets. US Bureau of Economic Analysis measured the gross domestic product growth since 2013 of each of the US states, and seven of the states in which we operate were in the top 20. Once again, our markets continue to distinguish themselves as some of the best places to live and work.

I'll touch on some of the business highlights first, and then provide some additional thoughts on the quarter. Net income for the quarter was $76.4 million, an increase of $8.6 million or 13% from the prior quarter net income of $67.8 million. Pretax pre-provision net revenue was $92.9 million versus prior quarter of $88.8 million, an increase of $3.4 million or 4%. The loan portfolio excluding PPP loans had record organic growth during the quarter of $714 million or 21% annualized. This is a very strong quarter, which we will discuss in detail shortly. Core deposits continued to flow into our divisions, growing organically by $84.5 million or 2% annualized. The cost of core deposits was six basis points, a decrease of one basis points from the prior quarter. This is another area that separates our company from the rest that I will discuss in more detail later.