Earnings call transcript: Glacier Bancorp Q4 2024 beats EPS forecasts

Glacier Bancorp Inc. (NYSE:GBCI), a $5.63 billion market cap regional bank with a 40-year track record of consistent dividend payments according to InvestingPro, reported its financial results for the fourth quarter of 2024, surpassing analysts’ expectations with an earnings per share (EPS) of $0.54 compared to the forecasted $0.52. Despite the positive earnings surprise, the company’s stock fell by 1.99% in after-hours trading, closing at $50.60. The revenue for the quarter was $222.99 million, slightly below the anticipated $224.93 million.

Key Takeaways

• Glacier Bancorp’s Q4 2024 EPS exceeded expectations, marking a 10% year-over-year increase.
• Revenue slightly missed forecasts, leading to a modest stock price decline.
• The company completed two acquisitions in 2024 and announced a proposed acquisition of Bank of Idaho.
• Net interest margin improved to 2.97%, driven by strategic financial management.
• Guidance indicates potential margin expansion and disciplined cost management in 2025.

Company Performance

Glacier Bancorp demonstrated robust performance in Q4 2024, with a 20% quarter-over-quarter increase in diluted EPS and a 14% rise in net income compared to the previous year. The company’s strategic acquisitions and expansion into high-growth markets contributed to its strong financial results. However, despite these gains, the slight revenue miss and subsequent stock price drop highlight investor sensitivity to revenue expectations.

Financial Highlights

• Revenue: $222.99 million, slightly below forecast
• EPS: $0.54, beating the forecast of $0.52
• Net income: $61.8 million, up 14% year-over-year
• Net interest margin: 2.97%, increased by 41 basis points year-over-year
• Net interest income: $191 million, up 15% year-over-year

Earnings vs. Forecast

Glacier Bancorp’s EPS of $0.54 exceeded the forecasted $0.52, representing a 3.85% positive surprise. This beat is consistent with the company’s historical trend of outperforming earnings expectations. However, revenue fell short of the $224.93 million forecast, which may have contributed to the negative market reaction.

Market Reaction

Following the earnings announcement, Glacier Bancorp’s stock declined by 1.99% in after-hours trading, closing at $50.60. This movement contrasts with the company’s 52-week range, where the stock has fluctuated between $34.35 and $60.67. With a beta of 0.81 and current P/E ratio of 29.33, InvestingPro analysis indicates the stock is currently fairly valued. The market’s reaction appears to be driven by the revenue miss and cautious investor sentiment despite strong EPS performance. Discover more insights and 12+ additional ProTips with an InvestingPro subscription, including detailed analysis of GBCI’s financial health metrics and growth potential.

Outlook & Guidance

Looking forward to 2025, Glacier Bancorp expects its net interest margin to expand to between 3.20% and 3.25%. The company anticipates margin growth through asset repricing and the runoff of its securities portfolio. With a current dividend yield of 2.66% and InvestingPro data showing four analysts revising earnings downward for the upcoming period, investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to subscribers, covering all crucial aspects of GBCI’s financial outlook and competitive position. Additionally, the proposed acquisition of Bank of Idaho is expected to add $9 to $10 million in quarterly expenses, reflecting a strategic move to strengthen its regional presence.

Executive Commentary

"We believe we are very well positioned for a strong 2025," stated Randy Chesler, President and CEO, highlighting the company’s strategic initiatives and financial health. Tom Dolan, Chief Credit Administrator, noted, "We’re looking at low to mid single digit loan growth," emphasizing the company’s growth prospects. Byron Pollan, Treasurer, added, "We expect the repricing to lift those yields 100 basis points to 125 basis points," indicating potential margin improvements.

Risks and Challenges

• Increased pricing competition in new loan originations could pressure margins.
• Seasonal fluctuations in non-interest bearing deposits may impact liquidity.
• Economic uncertainties could affect customer optimism and deal flow.
• Integration risks associated with the Bank of Idaho acquisition.
• Potential regulatory changes affecting the banking sector.

Q&A

During the earnings call, analysts questioned the company’s strategies for margin expansion and the impact of recent acquisitions. Executives reassured that loan repricing and securities runoff would drive margin improvements, while the acquisition of Bank of Idaho would provide immediate accretion despite conservative cost-saving assumptions.

Full transcript - Glacier Bancorp Inc (GBCI) Q4 2024:

Conference Operator: Good day and thank you for standing by. Welcome to the Glacier Bancorp Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Please be advised that today’s conference is being recorded.

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

Randy Chesler, President and CEO, Glacier Bancorp: Good morning and thank you for joining us today. With me here in Kalispell is Ron Cofer, our Chief Financial Officer Byron Pollan, our Treasurer and Tom Dolan, our Chief Credit Administrator. I’d like to point out that the discussion today is subject to the same forward looking considerations outlined starting on Page 14 of our press release, and we encourage you to review this section. Overall, the Glacier team delivered a very strong 4th quarter and full year performance. The positive trend of margin expansion driven by increasing interest income and lower deposit cost continued in the 4th quarter.

Credit performance remains very good, and we believe we are very well positioned for a strong 2025. Diluted earnings per share for the current quarter was $0.54 per share, an increase of 20% from the prior quarter diluted earnings per share of $0.45 and an increase of 10% from the prior year 4th quarter diluted earnings per share. Net income was $61,800,000 for the current quarter, an increase of $10,700,000 or 21% from the prior quarter net income of $51,100,000 and an increase of $7,400,000 or 14 percent from the prior year 4th quarter net income. The net interest margin as a percentage of earning assets on a tax equivalent basis for the current quarter was 2.97 percent, an increase of 14 basis points from the prior quarter net interest margin of 2.83% and an increase of 41 basis points from the prior year 4th quarter net interest margin. Net interest income was $191,000,000 for the current quarter, an increase of $11,200,000 or 6 percent from the prior quarter net interest income of $180,000,000 and an increase of $25,000,000 or 15% from the prior year 4th quarter net interest income.

The loan portfolio of $17,300,000,000 increased $81,000,000 or 2% annualized during the current quarter. The loan yield of 5.72% in the current quarter increased 3 basis points from the prior quarter loan yield of 5.69% and increased 38 basis points from the prior year 4th quarter loan yield. Total (EPA:TTEF) deposits of $20,500,000,000 at the end of the year 2024 decreased $168,000,000 or 1% from the prior quarter and increased $618,000,000 or 3% from the prior year end. Non interest bearing deposits represented 30% of total deposits, which remains unchanged from the prior year end. The total core deposit cost, including non interest bearing deposits, of 1.29 percent in the current quarter decreased 8 basis points from the prior quarter total core deposit cost of 1.37%.

The total cost of funding, also including non interest bearing deposits, of 1.71% in the current quarter decreased 8 basis points from the prior quarter total cost of funding of 1.79%. Noninterest expense was $141,000,000 for the current quarter, a decrease of $3,700,000 or 3% from the prior quarter. Non interest income for the current quarter totaled $31,500,000 which was a decrease of $3,200,000 or 9% over the prior quarter and an increase of $684,000 or 2 percent over the prior year Q4. Gain on sale of residential loans of $3,900,000 for the current quarter decreased $972,000 or 20 percent compared to the prior quarter and increased $1,700,000 or 76% from the prior year 4th quarter. Our credit portfolio continues to perform at near record levels with no material negative trends emerging.

Tangible stockholders’ of $2,100,000,000 at December 31, 2024, decreased $17,400,000 or 1% compared to the prior quarter and increased $118,000,000 or 6% compared to the prior year. On November 20, 2024, the company’s Board of Directors declared a quarterly cash dividend of $0.33 per share paid in December. The dividend was the company’s 159th consecutive regular dividend. The Glacier team has done an excellent job taking care of our customers while growing the business organically and welcoming our new acquisitions. In 2024, we closed and converted 2 transactions during the year.

Our purchase of the Rocky Mountain branches in Montana and the acquisition of Wheatland Bank in Eastern Washington, totaling approximately $1,200,000,000 in assets. And last week, we announced the proposed acquisition of Bank of Idaho, a $1,300,000,000 bank with locations in Eastern Idaho, Boise and Eastern Washington. This is a great transaction for Glacier because it strategically expands our presence in several high growth markets where we already have a presence. Financially, the transaction is very attractive, reflective of our disciplined approach to M and A with minimal tangible book value dilution, immediate accretion, conservative cost savings assumptions and a pay to trade ratio of only 76%. Bank of Idaho has a solid record of high performance.

And this was a negotiated transaction between Glacier and Bank of Idaho. So that ends my formal remarks, and I’d now like to open the line for any questions that our analysts may have.

Conference Operator: And our first question comes from Jeff Rulis with D. A. Davidson. Your line is open.

Jeff Rulis, Analyst, D.A. Davidson: Thanks. Good morning, Randy and team.

Randy Chesler, President and CEO, Glacier Bancorp: Good morning, Jeff.

Jeff Rulis, Analyst, D.A. Davidson: Maybe just to check-in on the margin and maybe loan growth, but first margin, you guys really gave pretty good transparency in 2024 as you approached 3%. And I guess the question is kind of the initial look at the path this year. I’m assuming maybe the December average was north of 3%, but wanted to check-in kind of the guardrails of how you frame up 25% relative to 24%.

Randy Chesler, President and CEO, Glacier Bancorp: Yes, I appreciate that. And we’ve had a lot of discussions about it. So Byron is ready to talk about margin.

Byron Pollan, Treasurer, Glacier Bancorp: Sure, Jeff. One of the things that we see going forward is we do see continued growth. So one of the things that we’re looking at is when we look at Q1, we do expect to see a continued growth, but at a slower pace. If you look back at kind of where we have been recently, Q3 of last year, that was that margin growth was supported by our Rocky Mountain branch acquisition. If you look at Q4, the growth there, the 14 basis points that Randy noted in his remarks, that was supported by Fed rate cuts leading to lower deposit costs.

I think in Q1, as we look ahead, we’re going to lean a little bit more on asset repricing. So we do expect growth in Q1, but at a slower pace. I would say our margin does have the potential the growth does have the potential to accelerate through the rest of the year. And what we’ll see in 2025 is we’ll see increased security runoff from our investment securities portfolio. I think that will be helpful to margin.

We have some high cost FHLB borrowing that will be maturing through the year. So that will be an opportunity for us to lift margins as well. And then of course, we have the Bank of Idaho transaction that will provide a little bit of a boost as well. So when I look at the full year 2025, I think our margin will land somewhere in the range of 3.20 percent to 3.25 percent.

Jeff Rulis, Analyst, D.A. Davidson: Really good color. Thanks, Byron. And then I’m going to chase down the growth side. I believe a little seasonally slower, but also given what the market’s given you, I guess. Any thoughts on the big picture growth?

Maybe any commentary about any shifts in customer demand that you’re seeing? Trying to get a sense for what you guys are budgeting in 2025 on the growth front organically?

Tom Dolan, Chief Credit Administrator, Glacier Bancorp: Yes. Good morning, Jeff. This is Tom. Looking forward, we’re looking at low to mid single digit loan growth. Overall pipelines over the last quarter were stable, but we did see growth in early stage opportunities.

And there’s growing optimism among the customer base, but we’ve yet to see it translate to actual deal flow yet. So what we see today, we’re looking at low to mid single digits for 2025.

Byron Pollan, Treasurer, Glacier Bancorp: Okay. Thanks. I’ll step back.

Conference Operator: Thank you. Our next question comes from Matthew Clark with Piper Sandler. Your line is open.

Matthew Clark, Analyst, Piper Sandler: Hey, good morning.

Randy Chesler, President and CEO, Glacier Bancorp: Good morning.

Matthew Clark, Analyst, Piper Sandler: Just a few more around the margin, the spot rate on deposits at the end of the year and the average margin in the month of December.

Byron Pollan, Treasurer, Glacier Bancorp: Sure, Matthew. This is Byron. Spot rate on deposits, this is total deposits at the end of December was 1.26%. And our December margin, we did have some noise within the quarter. And when you smooth out that noise, our December spot margin was 2.99%.

Matthew Clark, Analyst, Piper Sandler: Okay. And then the guide of 3.20% to 3.25% for the year, that seems like it implies like a 3.40%, 3.45% exit rate in 4Q. Is that fair, 335 to 345?

Byron Pollan, Treasurer, Glacier Bancorp: Okay. Yes. You’re spot on there.

Matthew Clark, Analyst, Piper Sandler: Okay. And then on the loan yields, they were up excluding accretion, they were up 4 bps to 5.65.

Byron Pollan, Treasurer, Glacier Bancorp: Can you just give

Matthew Clark, Analyst, Piper Sandler: us a sense for you’re able to mitigate the rate cuts with the floating portion of your portfolio, which is relatively small. But give us a sense for your outlook on core loan yields or if you want to include accretion, that’s fine too. Just trying to get a sense for whether or not loan yields can continue to expand if we get another rate cut given the back book?

Byron Pollan, Treasurer, Glacier Bancorp: Yes, I do think we’ll continue to see expanding loan yields. One of the things that you noted, we have a relatively small percentage of our loans are floating rate. But one of the things that we are looking at is we’ll have about $2,000,000,000 of loans re pricing in 2025 and there’ll be re pricing based on today’s market environment, there’ll be re pricing up 100 to 125 basis points. And so, I think that repricing dynamic is going to be very helpful plus new production rates, I think we’re going to be healthy as well. So that is our outlook for the those are the drivers behind our outlook for increasing loans.

Matthew Clark, Analyst, Piper Sandler: Great. And last one just on expenses. Ron, you want to take a stab at the run rate even though you beat it again for the year?

Ron Cofer, Chief Financial Officer, Glacier Bancorp: Thank you for the acknowledgment. Always appreciate that. Yes, just to put that into perspective, the report is $141,000,000 and we in the earnings release set forth a couple of adjustments. When you add that back, you get to $143,000,000 We’re just below that low end. And when we gave that guide, we were aware that we would probably need to true up performance related compensation and that was $5,000,000 rounded.

So if you put it all into perspective, it’s $148,000,000 if we had not had that expected performance related deduction. So that’s that. But the guide I’m excluding Bank of Idaho. So the guide for 2025 per quarter will range from $151,000,000 to 100 and $54,000,000 And as you would expect, the Q1 is skewed is typically higher and then, we’ll call that towards $154,000,000 And then as we go through the each of the quarters, it becomes less as we grow into our expense base. And the numbers that I just gave include the cost savings that remain from Wheatland Bank, which I would tell you is about $2,100,000 roughly.

And then the Rocky Mountain Bank acquisition, the majority of that to come in 2025 and that’s about 2,800,000 dollars All in total about $5,000,000 of cost savings that we’ve built in and very much are achievable in 2025.

Matthew Clark, Analyst, Piper Sandler: Great. Thank

Byron Pollan, Treasurer, Glacier Bancorp: you.

Conference Operator: Thank you. Our next question comes from David Feaster with Raymond (NSE:RYMD) James. Your line is open. Hi.

David Feaster, Analyst, Raymond James: Good morning, everybody. Good morning. Maybe touching on the deposit side, I mean you guys have been active reducing deposit costs, working with your clients. You guys are I mean coming off an already low level. But I just wanted to touch on how client reception has been to that and additional opportunities to reduce core deposit costs.

And then just also hoping you could touch on some of the NIB and DDA trends. How much of that was seasonal versus migration between accounts and just thoughts on deposit growth broadly?

Byron Pollan, Treasurer, Glacier Bancorp: Sure, David. This is Byron. I can touch on that. Yes, we’re very pleased with the deposit cost reduction that we saw in the Q4. In terms of customer reception, I think they’ve been understanding of the rate reduction.

I think our customers are aware of the rate environment and that they see the headlines with what the Fed is doing and they also see what other banks are doing as well. And so that I think has gone very well for us. I think in terms of ongoing opportunity, one of the things, one of the places where I think we could see a little bit more progress is in our CD portfolio. Our CD portfolio remains fairly short, over 60% of our CDs will roll over again in Q1. And those renewal rates are coming in around 10 to 20 basis points lower than the maturing rate.

And so by the end of Q1, we’ll be mostly repriced into the current rate environment. But I think that’s a little bit of an opportunity for us as well. When I think about the non interest bearing flows, I do think that those were seasonally influenced. So we typically do see some outflow in the Q4. And so and potentially what we saw was a little bit of an unwind of the inflow that we saw in Q3, but definitely it was directionally consistent with what we typically see in the Q4.

David Feaster, Analyst, Raymond James: Okay, That’s helpful. And just back to the margin, I just want to be clear. So that $320,000,000 to $325,000,000 that is exclusive of Banc of Idaho and that would be additive to that margin guidance, correct?

Byron Pollan, Treasurer, Glacier Bancorp: That guide does include Bank of Item.

David Feaster, Analyst, Raymond James: Okay. That is with Bank of Item. Got it. Got it. Okay.

And then just touching on credit, I mean, obviously, credit is still benign in your book. I’m curious what you’re watching closely, what you’re seeing? Is there anything that’s concerning? We’ve seen some pressure in some other banks on the small business side, but just kind of curious what you’re seeing on the credit front?

Tom Dolan, Chief Credit Administrator, Glacier Bancorp: Yes, David. I don’t think we’ve seen the same pressures that others have. I can’t point to any one specific geography or industry. And even rewinding back a couple of quarters, certain commodities on for our ag growers suffered a little bit in 2024. But quite frankly, I think the end result of the 2024 growing season was stronger than we had anticipated.

Ron Cofer, Chief Financial Officer, Glacier Bancorp: So that’s

Tom Dolan, Chief Credit Administrator, Glacier Bancorp: encouraging. So again, no specific industry, no specific geography that stands out.

Randy Chesler, President and CEO, Glacier Bancorp: The only thing I’d add there, David, is weak operators continues to be the one thing that we see develop. We did a lot of those folks out over the last couple of years. But we still see people struggling in an environment where they shouldn’t be. So more individually focused, not trend related, but operators that struggle in an environment where they really shouldn’t, that’s business. You got good business men and then you have men and women, you have some weaker ones.

So the only thing we’re really seeing is and watching are operators we think are struggling when they shouldn’t be and there’s a few but not many.

Byron Pollan, Treasurer, Glacier Bancorp: Okay.

David Feaster, Analyst, Raymond James: And what about on the competitive landscape? I know you talked about, Tom, just kind of an increased optimism hasn’t necessarily shown up into the pipeline yet. Hopefully, that’s on the come. But just kind of curious, what are you seeing from the competitive landscape from other banks across your footprint and kind of where are new origination yields today?

Tom Dolan, Chief Credit Administrator, Glacier Bancorp: Yes, I’ll start with the new origination yields for the quarter was 7.34. And the trend with that, I think a lot of the competitors are seeing the same thing that we are, growing optimism, but not seeing a lot translate into actual deal flow. And so what that means is those that do, there’s increased pricing competition and that’s what we’re seeing. So we’re having to sharpen the pencil on stronger deals. We’re really not seeing any concerning competition from a structure perspective.

It tends to still be more around the pricing element.

David Feaster, Analyst, Raymond James: Okay. All right. That’s helpful. Thanks everybody.

Ron Cofer, Chief Financial Officer, Glacier Bancorp: Welcome.

Conference Operator: Thank you. Our next question comes from Andrew Terrell with Stephens. Your line is open.

Andrew Terrell, Analyst, Stephens: Hey, good morning.

Randy Chesler, President and CEO, Glacier Bancorp: Good morning.

Andrew Terrell, Analyst, Stephens: I wanted to go back to some of the margin just quickly. Byron, I think you made a comment earlier about experiencing some pickup in securities cash flow and repricing ability in 2025. Can you just rehash that a little bit and maybe if you could talk about just the cash flow you’d expect on a quarterly basis out of the bond book?

Byron Pollan, Treasurer, Glacier Bancorp: Sure. We have been seeing about $250,000,000 per quarter of cash flow that’s principal and interest from the securities portfolio. I do see a little bit of a bump in Q1. I’m going to increase that guy to $275,000,000 in Q1. And then we start to kind of come into some treasury maturities.

We’ll have a $50,000,000 treasury maturity in the 2nd quarter. And then really where we’ll start where we will start to see these treasury maturities will be in the Q4. We have $270,000,000 maturing of treasury in Q4 that would be incremental to the typical $250,000,000 of cash flow that we typically see. And then we will have meaningful quarterly treasury maturities throughout 2026 and into 2027.

Andrew Terrell, Analyst, Stephens: Got it. Okay. So I guess fair to say it kind of segues into what I was going to ask next. Just you’ve got what looks like a really nice margin progression throughout 2025 on this fixed asset repricing dynamic. It seems like that’s even though it’s really good in 2025 kind of set to accelerate in 2026 at least from a fixed asset perspective, correct?

Byron Pollan, Treasurer, Glacier Bancorp: I think that’s fair to say. We really haven’t done much in terms of looking at 26. We’re focused on 25 for now, but those trends, at least from the securities runoff, definitely go into 26.

Andrew Terrell, Analyst, Stephens: Got it. Okay. And not to get maybe too technical, but you did mention a minute ago that the $2,000,000,000 of loans kind of repricing throughout the year. I think you mentioned 100 or 125 basis point pickup. And I’m just curious if I when you said 100 to 125 basis points, do you mean that’s for new origination yields are above current average book yields?

Or I would assume that the pickup just given the move in the 5 year is more than like the back book, front book is more than 100 basis points on some of those loans?

Byron Pollan, Treasurer, Glacier Bancorp: Yes. What we’re looking at there is we’re looking at the yields that those loans are where they currently sit in the portfolio and where they will reprice, we expect the repricing to lift those yields 100 basis points to 125 basis points.

Andrew Terrell, Analyst, Stephens: Okay. Got it. And then I wanted to ask around just some of the non interest bearing deposit flows. If I just look at the end of period versus the average, it looks like a lot of the NIB compression was late in the quarter. I’m just curious if you could speak to trends you’re seeing so far in January?

Byron Pollan, Treasurer, Glacier Bancorp: You are right. A lot of the outflow was late in the quarter. And typically, we are starting to see some of the seasonality come back into the deposit portfolio. I wouldn’t say we’re normal yet, but we’re normalizing or kind of getting back to some of those normal seasonal trends. Q1 is can be somewhat of a mixed bag.

What we typically see is, we typically see a little bit of runoff into January recovery in February, March. And so far, I would say the flows that we’ve seen in December and so far in January have been consistent with those historical

Andrew Terrell, Analyst, Stephens: months. Understood. Okay. Thank you for taking the questions.

Conference Operator: Welcome. Thank you. Our next question comes from Kelly Motta with KBW. Your line is open.

Kelly Motta, Analyst, KBW: Hi, good morning. Thanks for the question.

Randy Chesler, President and CEO, Glacier Bancorp: Good morning.

Kelly Motta, Analyst, KBW: I wanted to get I circled back to your outlook for growth ahead, I believe you said lowtomidsingledigit loan growth. And just a couple of points of clarification, does that include the acquisition, Bank of Idaho in it? Would that be additive to that?

Tom Dolan, Chief Credit Administrator, Glacier Bancorp: Yes. Bank of Idaho would be additive. The low to mid single digits is organic.

Kelly Motta, Analyst, KBW: Got it. And then I think you mentioned that there’s still some FHLB borrowings to be paid down. Putting together kind of your outlook there for the size of the balance sheet and kind of the potential payoff of borrowings and securities roll off. I’m wondering how we should be thinking overall about the size of the balance sheet for the year kind of exiting 2025 given those there’s multiple moving parts in that?

Byron Pollan, Treasurer, Glacier Bancorp: There are multiple moving parts. And so, big picture, some of the things that we see accelerated securities cash flow runoff, we’ve talked about that. We will have above our $1,800,000,000 of FHLB advances, term advances that we currently have outstanding, dollars 1,360,000,000 of those will mature in 2025. And so I do expect that we’ll make meaningful progress in paying down that debt. I don’t know that we’ll pay it all the way off, but I do think we’ll make progress in paying some of that down.

So between the securities runoff, that’s going to give us the cash to pay down the wholesale borrowing. We could see some delevering in the balance sheet. And so organically, we could see a little bit of decline in the size of the overall balance sheet. Once we add Bank of Idaho, then I see us exiting 25 at a with a larger balance sheet than we exited 24. So little bit of runoff, little bit of delevering, and then adding Bank of Idaho will get us back above that bar.

Kelly Motta, Analyst, KBW: Got it. That’s helpful. Thank you. And then I was hoping to clarify, I apologize, I was having trouble following the expense commentary. That $151,000,000 to $154,000,000 per quarter, just to clarify, does that include is that standalone and then Bank of Idaho would be additive to that?

And I think your commentary suggested some higher expenses to start out the year. So I’m hoping you could provide some clarity there.

Ron Cofer, Chief Financial Officer, Glacier Bancorp: Yes. So Ron here. So the guide was per quarter $151 to $154 per quarter. And it’s typical the Q1 was skewed towards the high side of the $154,000,000 and that those savings, as I said, would stair step down as we continue to achieve the savings from that remain for the Wheatland Bank about 2.1 at Rocky Mountain, call it 2.8. It’s about 5,000,000 all in.

And so Boyd, Bank of Idaho, pardon me, is not included in there. We do expect to close the deal in the Q2 of 20 25, and the run rate for that would be say $9,000,000 to $10,000,000 per quarter. And certainly, the Q3 and Q4, again, we’re going to close on June 30 or we’re going to close on April 30. So I’ll let you factor in, yes, per year per quarter, excuse me, to $9,000,000 to $10,000,000 per quarter.

Kelly Motta, Analyst, KBW: Okay. Thank you. I appreciate that.

Conference Operator: Thank you. And our next question comes from Jeff Rulis with D. A. Davidson. Your line is open.

Jeff Rulis, Analyst, D.A. Davidson: Thanks. Just to follow-up on the just wanted to check-in on the credit side. I think the charge offs came up a little bit, but certainly not a big number and given the non performers really comfortable level. Just the pickup in the provision, particularly with a little slower growth, wanted to just check-in on the approach, a conservative view here and anything kind of underfoot that I think maybe the charge offs, there was a few in the construction bucket, just checking back in on the pulse of credit from your view.

Tom Dolan, Chief Credit Administrator, Glacier Bancorp: Yes, Jeff, this is Tom. The charge off, yes, you’re right up a little bit in the Q4. That was primarily end of year cleanup, something we go through on an annual basis. And to your point, nothing overly material there. The change in the provision expense was centered in the unfunded side.

So in the Q3, we had a release on the unfunded side. In the Q4, we had a provision with some new unfunded commitments that were booked. So that’s the driver of the provision expense. On the funded side, no material change in outlook or anything like that.

Jeff Rulis, Analyst, D.A. Davidson: Got you, Tom. So maybe tying together, when we talked about some growth, you kind of said some maybe some early stage relationships developing. Is that tying those 2 together on the unfunded or are those separate entities?

Tom Dolan, Chief Credit Administrator, Glacier Bancorp: Those are separate entities. The unfunded commitments booked in the Q4 primarily on the construction side were primarily deals that we have been working on for a few months prior to the Q4. Those came through, went through underwriting approval booking. So the increased optimism and kind of the growth in that sector of the pipeline is in addition to that.

David Feaster, Analyst, Raymond James: Okay, great. Thank you.

Ron Cofer, Chief Financial Officer, Glacier Bancorp: Welcome.

Conference Operator: Thank you. I’m showing no further questions at this time. I would now like to turn it back to Randy Chesler for closing remarks.

Randy Chesler, President and CEO, Glacier Bancorp: Yes. Thank you, Daniel, and we appreciate everybody dialing in today. Have a great Friday and a fantastic weekend. Thank you.

Conference Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

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