Glacier Bancorp, Inc.

Thank you for standing by, and welcome to the Glacier Bank Corp First Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. If your question has been answered, and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Randy Chesler, President and CEO. Please go ahead, sir.

Good morning, and thank you for joining us today. With me here in Kalispell is Ron Cofer, our Chief Financial Officer, Tom Dolan, our Chief Credit Administrator, Angela Dosey, our Chief Accounting Officer, and Byron Pollin, our Treasurer. I'd like to point out that the discussion today is subject to the same forward-looking considerations outlined starting on page nine of our press release, and we encourage you to review this section. Last night, we issued our earnings release for the first quarter of 2026, and we believe it represents a great start to the year with another quarter of strong results. Net income was $82.1 million. an increase of $18.4 million or 29% from the prior quarter and an increase of $27.6 million or 51% from the prior year first quarter. Diluted earnings per share was $0.63 per share, an increase of $0.14 per share or 29% from the prior quarter and an increase of 15 cents per share or 31% from the prior year first quarter. A key driver of our performance continues to be margin expansion. The net interest margin as a percentage of earning assets on a tax equivalent basis was 3.80%, an increase of 22 basis points from the prior quarter and an increase of 76 basis points from the prior year first quarter. The loan yield of 6.16% in the current quarter increased seven basis points from the prior quarter and increased 39 basis points from the prior year first quarter. The total earning assets yield of 5.11% in the current quarter increased 11 basis points from the prior quarter and increased 50 basis points from the prior year first quarter. The total cost of funding of 1.4% in the current quarter decreased 12 basis points from the prior quarter and decreased 28 basis points from the prior year first quarter. Turning to balance sheet trends, the loan portfolio of 21 billion at the end of the quarter increased 106 million or 2% annualized from the prior quarter. The Southwest region, which includes Arizona and Texas, grew in excess of 7% annualized during the current quarter, underscoring the strength of our diversified geographic footprint. On the funding side, Total deposits of 24.7 billion at quarter end increased 151 million or 2% annualized from the prior quarter. Non-interest bearing deposits of 7.4 billion increased 113 million or 6% annualized from the prior quarter. Looking past the quarterly acquisition-related expenses, the non-GAAP operating results show the core strength of the business without acquisition expenses. Operating EPS was 70 cents per share. Operating expenses were $188.2 million for the quarter, demonstrating consistent cost control. Our credit portfolio continues to perform very well. Non-performing assets remain low at 25 basis points of total assets with a slight increase from the prior quarter. Net charge-offs declined to two basis points of total loans, down from six basis points in the prior quarter. Our allowance for credit remains at 1.22% of total loans, reflecting our conservative approach to risk management. We also executed well on integration and operations. During the quarter, we completed the core conversion of Guaranty Bank, which we acquired in October of 2025. And I want to thank our teams for their excellent work and focus on our customers throughout the conversion. As always, we remain committed to consistent shareholder returns. In March, we declared our quarterly dividend of 33 cents per share. representing our 164th consecutive quarterly dividend. We are very encouraged with the business performance in the first quarter and look forward to a strong 2026. Our exceptional team, expanding footprint, unique business model, strong business performance, disciplined credit culture, and strong capital base continue to provide a solid foundation for future growth. That ends my formal remarks. And now I would like the operator to please open the line for any questions that our analysts may have.

Certainly. And our first question for today comes from the line of Jeff Rulis from DA Davidson. Your question, please.