Q3 2019 Earnings Call
Ladies and gentlemen, see standby Glacier Bancorp third quarter earnings conference call will begin momentarily.
Till the time you lines will begin pretty soon.
I get ladies and gentlemen, thank you for standing by Glacier Bancorp third quarter earnings Conference call will begin momentarily until the time you learn this will begin thing so.
Thank you for your patience.
Good morning, ladies and gentlemen, and welcome the Glacier Bancorp third quarter earnings Conference call.
This time all participants are in listen only mode. Later, we'll conduct a question answer session and instructions will follow what that's fine.
Anyone should the class instance, during the conference. Please press Star then numbers you're on the telephone keypad.
As a reminder, this conference call is being recorded.
Oh don't like to surgical on French somebody Whos, Randy Chesler, President and CEO Mr. Bancorp suggested that the floor is yours alright. Thank you recipe. Good morning, Thanks for joining us today with me here in Kalispell. This morning, as Ron Copher, Our Chief Financial Officer, Don Chery, our chief administrative officer.
Angela dose see our chief accounting officer.
The Johnston, our Chief Credit Officer, Tom to all in our Deputy Chief credit administrator, and Byron, calling our treasurer.
The first thank you all for joining us today and I hope you're all enjoying the fall.
Yesterday, we released our third quarter 2019 results. This was a very strong quarter for us with strong net interest margin excellent deposit growth steady in improving credit performance and good quality loan growth.
As we noted in the last quarter's call. We feel we are very well positioned to navigate through the current interest rate environment and despite the headwinds in the market for banks challenging interest rate curve later innings of a long term recovery.
Glacier team is strong and we're continuing to build the balance sheet and the company for the long haul.
Some highlights from the quarter earnings were 51.6 million, an increase of 2 million or 5% over the prior year third quarter, including current period acquisition related expenses of 2.1 million.
And 5.4 million of stock compensation expense related to the accelerated vesting of options from the heritage Bancorp acquisition.
Without the acquisition expenses net income would have been 56.2 billion an increase from the prior year third quarter of 6.9 million or 14%.
Diluted earnings per share for the quarter were 57 cents a decrease of 2% over the prior year third quarter, but this included the acquisition related expenses.
Organic loan balances increased 84 million or 4% annualized on a full year basis loan balances grew 393 million or 6%.
We also had organic core deposit growth of 302 million or 12% annualized.
Inorganic non interest deposit growth was a very strong $211 million or 26% and realize.
This quarter's deposit growth exceeded our expectations.
Net interest margin for the quarter of 4.42% of earning assets.
Increased nine basis points over the prior quarter, excluding the two basis points from discount accretion and five basis points from non accrual interest. The core net interest margin grew eight basis points in the quarter to for 35 from for 27 in the prior quarter an up 70.
Gene basis points from for 18 in the prior year third quarter.
We're very pleased to be one of the few banks and this earning season has to be able to talk about an expanding margin.
Return on assets was 1.55% for the quarter 14 basis points decrease over the prior quarter as a result of the acquisition related expenses that occurred during the quarter without those expenses are way would have been 1.69% for the quarter.
Tangible book value per share at 15 53.
Quarter and increased 50 cents a share from the prior quarter and increased a $1.90 per share from a year ago.
We also declared a regular dividend of 29 cents per share our 138 consecutive quarterly dividend, which was a 7% increase over the prior quarter.
At the end of July we successfully closed on the acquisition of Heritage Bank Corp in Reno, Nevada.
Heritage became our 16 division and our first entrants into Nevada, and we're very excited to welcome the heritage Bank team to the Glacier team.
And then in late September we also announced the acquisition of State Bank Corp. and Lake have ASU, Arizona with total assets of 677 million.
State Bank will be combined with our Fort Hills Bank Division and continue its over 20 years legacy of serving Arizona communities.
The acquisition of course is subject to regulatory approvals and customary conditions of closing and we're expecting to close that late this year or early next year.
Now for a little more colour on the quarterly results.
Loan production for the first quarter was once again generally well distributed among all divisions.
Loan Paydowns were slightly elevated compared with past third quarters.
The loan portfolio ended the quarter at 9.5 billion.
As a result of the slower third quarter and typically slower fourth quarter, we're anticipating is 6% organic loan grave.
Loan growth rate for the year.
We continue to feel very good about our western markets. We've seen an increase in pay offs with customers taking advantage of the strong markets liquidated liquidity generated from these sales has not been immediately reinvested by sellers. After eight we've seen in the past due to those sellers being a bit more cautious about.
Making new investments. In addition, we've seen a small increase in money center banks, making larger loans to some of our customers at rates, we don't think adequately pay for risk at this point in this cycle.
So we're happy with our rate of growth and we're going to be continue to be disciplined in our approach the lending with arrived on the longer term.
Total investment Securities of 2.6 billion decreased 28 million or 1% during the quarter and our flat compared to the prior year third quarter.
Investment Securities represented 20% of total assets at the ended the quarter compared to 23 at the end of the third quarter a year ago.
Once again, our key credit quality ratios improved internal in almost all categories across the board, reflecting the strength of our loan portfolio.
Early stage delinquencies as a percentage of loans at the end of the third quarter were 31 basis points.
A decrease of 12 basis points from the prior quarter and flat to the prior third quarter in a year ago.
Net charge offs for the quarter were 3.5 billion compared to 2.2 million in the third quarter a year ago.
This increase in net charge offs was primarily centered in one loan with a 1.9 million dollar loss, resulting from a negotiated short sale.
Nonperforming assets as a percentage of subsidiary assets at the end of quarter were 40 basis points, which is one basis point lower than the prior quarter and 21 basis points lower than the prior third.
Prior year third quarter.
At the ended the quarter. The dollar amount of Npis were 55.1 million, an increase of 3.1 million or 6% from the prior quarter.
But the increase was primarily driven by a 2.7 million dollar loan that we expect to resolve early next year.
A number of our divisions and division Chief credit officers officers continue to do an excellent job working through these credits.
We think now as the time to be more proactive with weaker credits and we will continue to do so.
The allowance for loan and lease losses as a percentage of total loans outstanding at the ended this quarter was 1.32%, which is down 14 basis points from the prior quarter and down 31 from the third quarter a year ago.
Provision for loan losses were zero in the current and prior quarters.
This reflects our continued very positive outlook on our portfolio and our markets.
We don't see these one off loan issues as a trend.
Core deposits ended the quarter at 10.7 billion.
Total core deposits were organically up 12% annualized or 302 million, an increased $287 million or 3% from the quarter a year ago.
Non interest bearing deposits were organically up $211 million or 26% annualized and increased 280 million or 9% over the prior years third quarter.
We've been focused on growing our share of non interest deposits for some time now and are really pleased to see the growth trend.
Non interest deposits are now 35% of deposits up from 32% a year ago.
The cost of our core deposits was up slightly.
From 19 basis points to 21, and the current quarter and up five from the prior years third quarter.
We ended the quarter with a loan to deposit ratio of 80.71 down from 90.27 at the end of the prior quarter, resulting from the acquisition and really strong deposit growth.
The total cost of funding for the current quarter was down was 39 basis points. This was down from 45 at the end of the prior quarter and 36 and and.
36 basis points at the end of the prior year third quarter.
The decrease was driven by an increase in low cost deposits.
That was utilized to pay down high cost borrowings.
Net income for the quarter was 131 million, which was up 111.1 million or 9% from the prior quarter and increased $17.7 million or 16% over the prior year third quarter.
Interest income on commercial loans increased 9.2 million or 10% from prior quarter and increased $16.6 million or 21% from the prior year third quarter.
As I noted.
Last quarter there'd been a lot of talk about margin and now fast forward to this earning season in the conversation about margins still continuing.
Going forward in 2019, we continue to.
I believe we'll see a generally stable core margin operating in a tight band around current levels.
Impact on the margin in 20 will depend on the steepness of the interest rate curve at that time, but overall, we feel very well positioned to navigate through this environment.
In early September the company implement a balance sheet strategy to increase its net interest income and net interest margin.
Strategy included early termination of the company's $260 million notional pay fixed interest rate swaps and corresponding data at 3.73%.
Along with the sale of $308 million of available for sale Thats Securities.
Sale of the investment securities during the quarter resulted in a gain of 13.8 milling million offsetting the gain was a $10 million loss recognized on the early termination of the swaps and a $3.5 million write down of deferred penalty payments on federal home loan bank borrowings.
So the net here as we believe this strategy will mitigate the five to seven basis points of margin headwinds that we talked about for the rest of 2019 on our last quarter's call and continue to provide a bit of support under our margin going forward.
Noninterest income for the quarter totaled 43 million that was up 40% or $12 million from the prior quarter and increased 10.6 million or 33% over the same quarter last year.
This increase is primarily attributable to the sale of securities and related to the balance sheet strategy.
Service charges and other fees of 15.1 million decreased 4.9 million or 24% from the prior quarter and this was due to.
To the decrease in interchange fees as a result of the Durbin Amendment.
Notably gain on sale of loans up $10.4 million increased 2.6 million or 34% over the prior quarter, and 3.1 million or 43% over the prior year third quarter.
This was due to increased purchase and refinance activity at very very strong levels.
The company sold $308 million of Securities and recognized a 13.8.
And gain of 13.8 million an increase of 13.7 from the prior quarter. Other income was down 2.3 million from the prior years third quarter and this was a result of a gain of 2.3 million on the sale of a former branch building in the and the prior year third quarter.
Noninterest expense for the quarter was $111 million and this increased 24.5 or 28% from the prior quarter and 27.8 or 34% over the prior year third quarter.
Compensation and employee benefits increased 10.5 million, our 20% and this was primarily due to the $5.4 million stock comp expense related to the acquisition and organic and acquisition growth, which required more employees.
Regulatory assessment insurance decreased $1.3 million, 68% from their prior quarter as a result of the 1.3 million of small bank assessment credits applied by the FDIC during the quarter. Other expenses of 29.1 million increased 13.8, or 90 or 91%.
From the prior quarter. This was driven by the 3.5 million dollar loss in the pay down the federal home loan bank.
And a $10 million loss on the termination of the cash flow hedges.
Acquisition related expenses were 2.1 million during the quarter compared to 1.8 in the prior quarter 1.3, a year ago.
Tax expense was 12.2 million a decrease of 356000 or 3%.
Compared to an increase of 1.4 million or 13% from the prior year third quarter effective tax rate is 19% compared to 18% in the prior year third quarter.
Efficiency ratio impacted by the current quarter.
Unusual events that we've talked about primarily related to the.
Balance sheet strategy and the acquisition.
Excluding those things the efficiency ratio would have been closer to 54.4.
Which keeps us in the range of the 54, 55% that we've been talking about.
So a lot going on.
But we think this third quarter.
Really represents an excellent performance by the company. In addition to delivering strong operating performance for the quarter. The company completed the acquisition of Heritage Bank and announced the acquisition and state Bank of Arizona.
So our 16 division presidents and their teams across our eight states now with Nevada as well as our senior staff continue to produce market, leading results and I would like to thank them all for their commitment and their drive to be the best.
So ready that concludes my form or not remarks, and I'd now like to turn the call back over to you to open the line for any questions that our analysts may have.
Sure so maybe.
GAAP questions at this time.
The number one on the telephone keypad.
Question has been answered or.
Sell them the Q.
Star one that's the question.
We have our first question on the line, Jeff rulings from the Davidson Your line is open.
Thanks, Good morning.
Jeff.
Randy your comments on.
I guess elevated paydowns.
Perhaps a more aggressive.
Competition.
Moderating that growth outlook, a little bit.
We've got your.
And a guide for 20 or excuse me for the through the end of the year, but how does that bleed it.
20.
You see the pay downs is somewhat temporary and.
I guess the balances 20, how would you look at growth.
At this point it looks like free.
Kind of equal segue into 20 at these growth rates.
We.
I don't see you don't expect a huge change in kind of those factors, but 5% to 6% kind of feels like.
What 20 is going to look like at this point.
You do you get the sensitive just when it's not going to the business customers any softening or any behavioral changes given macro events that theyre sort of pulling in the words at all.
On that front.
No we talk to our customers a lot across our western states.
I think a lot of 'em remain very confident.
I did make a note in my comments just as we see some of our long time customers experienced in a lot of our market sell properties I think they're a little more cautious on making reinvestments and thats part of whats taken our growth rate moderating slightly I don't think they.
Have any concerns other than they just want to continue to make good investments is there a little harder to find as the economy has continued to do well over a long period of time.
Got it okay.
Uh huh.
Varies on or someone else can tackle it just.
You guys have it Cecil update to provide and just thoughts on.
That and provisioning levels potentially going forward.
You want Barry you got on Okay.
Part of Jeff.
We have been running parallel run since March we went through about six different.
Ross that weve, compared and numbers with where we're at now were going up.
Based on what we're seeing.
Given the fact that theres still a moving target.
Model isn't.
Total totally.
Structured yet.
The way we want it also we have an acquisition coming up with the state Bank, Arizona that will impact and numbers and of course, there's always the accounting adjustments that impacted numbers, but overall, we feel that.
With Cecil implementation, there will be in increasing the reserve from where we project our reserves to be.
You're right on topic that is still a soft number so.
Just kind of keeping that in our hip pocket until we get closer to year end when we when we run the last.
Last month.
Okay. Thanks, and maybe the one last one just to the mortgage banking kind of gain on sale pretty robust. Obviously, we will expect some seasonality, but any thoughts on how that's going quarter to date and maybe.
Your thoughts on.
Yeah as well.
Yes, no, but we're very happy pretty very very strong record quarter for us in terms of the volume continues to look strong coming into the.
Fourth quarter.
So.
Probably not.
I'm not quite as strong as our third quarter, but pretty good strength across the board. So we see.
We should see some good good strength to continue there.
Okay. Thank you.
All right Thats question.
And we have our next question on the line from that Clark from Piper Jaffray.
Okay.
Martin Matthew.
Good morning.
Maybe first one just on the securities that were sold this quarter can you give us a sense for the kind of a weighted average yield on that.
Portion that was sold just trying to get a sense for what's what rolled off relative to.
Still on the books.
Yes.
Matt It's Ron so the.
Weighted average yield was basically to 94.
So just some of the longer dated Muni has been very few the predominant portion of what we sold was the lower yielding.
Agency Securities, including some of the agencies that we had from the heritage acquisition.
So in terms of reinvesting that.
We're.
Just about halfway.
Done with that and the overall that metric that the portfolio really haven't changed much the yield came down maybe three basis point when you look at it Q3 over Q2, but in terms of.
Duration weighted average life, it's pretty consistent with what we had.
We ended the second quarter.
I would also take note.
We built our cash position.
So we still got that too.
Hopefully reinvest or even pay down some higher costs.
Positively half.
Okay, and then just on deposit costs.
Have you stabilize pricing at this point or you feel like there's still some upward pressure.
In terms of inception pricing.
Yes.
Yes, I would probably say feel pretty stabilized we've seen a lot less request for.
Interest rate exceptions, so I think the market is settle down quite a bit.
There is still all those one off.
Circumstance, but generally Matthew I'd say it's.
Dave lies quite a bit.
Okay, and then just on on charge offs in credit in general the the 1.9 billion dollar loss on the short sale.
Is.
There are more cleanup work to be done here, where we might see some lumpy charge offs or is that process largely complete at this point.
Yes, we don't see.
I don't have a pipeline of.
Of credits to work. This one had been in the portfolio for quite awhile had been trouble in the past and we just at the point I was I made my comments, where we just feel now is the time to get a little more proactive with some of these weaker credits and deal with them.
Kind of continued to kind of work better over a number of years, we just felt.
It was a good time to exit and.
I think on a one off basis, we may see more of those pop up but we don't right now we don't see a lot of that.
But again, our bias now with us with us still have relatively strong economy is to be proactive with weaker credits.
We don't see trends in the portfolio weakness.
But weaker operators are probably the biggest.
Issue right now across the board so if we see.
Folks that that we think can carry the us in the distance will will be a little bit more proactive.
Okay, and then just last one.
The operating efficiency ratio 54 four.
As you kind of work through the budgeting process for next year, you're looking to manage within that range still in a 54 50 Bucks.
On the operating basis Yep, Okay. Thank you. Thank you.
Welcome.
Presti.
Yes, Sir we have our next question from Gordon water from Stephens. Your line is open.
Thank you good morning morning.
So I just wanted to follow up the efficiency question would just how to think about the next quarter expense levels.
If I back out what I would assume for acquisitions.
On the compensation line it looks like the core compensation was about 3 million, which I know you attributed.
So in some new hires but it just seems a little bit elevated I'm wondering whether there was some more unusual items or whether this is decent run rate to look at before cost saves come in.
Yes, no there there were no other unusual items in there and I think you're seeing just the.
Acquisition increases that we brought on with Leighton and then with Heritage Bank.
Pretty close together so.
Should be a good what you have seen now as should be a pretty good run rate than to.
Two for the future.
Thanks, and just to clarify the FDIC small bank assessments credits those are more one time, so I guess the regulatory expense should move back closer to 2 million a quarter once the remaining credits or blood.
We don't know when they're going to give us the credits.
Probably going to be over the next couple of quarters, but really it's up to the FDIC and there.
Fund levels.
So but once it gets depleted then that's the end of it.
Got it.
And last one from me on the loan yields on a core basis. They have been up for four basis points from the first quarter.
Hard for me to see.
What's the underlying impact from the rate environment or just given the acquisitions, which I think came over at higher yields is there yes in key set out and help us think about repricing trends over the next few quarters on a kind of legacy basis.
Let's see so if you look at at the loan yields they are.
They have done pretty well and we did we are getting some lift out of the.
Acquisitions that we brought on both with little bit higher.
Loan yields.
So thats a.
That's a positive on on the repricing.
Ron do you want to comment on that I think the question about the impact of the of the repricing, yes those.
Where the.
We have we have quite a lot of floor.
Protection.
We look at.
Third quarter, and then in the fourth quarter, though we've we've got.
That's holding up.
A lot of what could have reprice, so, but the new production yields are definitely coming in lower are not going to defy gravity.
But keep in mind when you look at the margin you can see that overall loans went up to 523 from 520. So in there you'll see that discount accretion plus the five basis points on non accrual.
Interest recovery.
So, yes I think.
On the floors. The just keep in mind three quarters of the book has a floor is either fixed or has floor protection and then when we look at the fourth quarter.
90% of the portfolio is protected and so one way or the other.
Got it.
Alright. Thank you so ahead.
Yes.
Steve do we have any other questions.
Yes, Sir you have an especially from Michael Young from Suntrust. Your line is open.
Hey, everyone. Thanks for the question.
I wanted to follow up first on the loan yields question I was just ask just on new production, where that new production yields coming on relative to the back book just given the the 150 basis point drop and five year rates since last year.
Yes, so where the we've said in prior quarter call that the we thought the loan production yields would come in just north of 515 actually did pretty well they came in just a.
Clean five of five 510 right in that range, so that held up as well again, we think that's attributed to our floors.
And we'll still see some of that downward pressure. So in terms of the backlog theres very little lift in the vintages going back two or three years ago, just given where the five year federal home loan bank.
Ratestar, which we tend to price off the majority of our portfolio.
Okay. So essentially you're just getting wider spreads on new production.
Yes, where we can't Yep.
Okay. And then also wanted to just follow up on the comments of kind of the slower loan growth with higher pay offs, but it still seems like deposit growth remains very strong. So how are you kind of thinking about that strategically from a mix perspective on the balance sheet is that incremental deposit funding going to go into the securities book or how should we think about that.
Yes, I think we'd we'd like to see.
Incoming deposits funds loan growth.
I think we're seeing that now.
So we're happy to have.
Pretty good balance.
But to the extent now that we have most of the high cost debt.
Terminated and off the balance sheet, yet any kind of access will go towards reinvestment in the portfolio.
Okay. So we could see some margin compression a little bit from mix shift, but it would still be eni dollars positive because the balance you may grow a little faster than loan growth potentially.
Tackling yep.
And then maybe just a last one kind of cleanup question on or an update on the state Bank acquisition, just any update on timing around closing or system conversion.
Yes.
Closing, we have to go through regulatory approval and.
Thats underway and you know I think late this year kind of early next year is probably the right timing.
If that timing works out we would look we have a conversion spot open.
Towards the later ended the first quarter.
And we generally like to do.
Those acquisitions, where we have.
Two banks in the same market sooner rather than later, because when we announced that we have a lot of customers.
From both banks going to the new bank and trying to do transactions. So the sooner we generally like to do those sooner rather than later.
Okay and one last cleanup question for Ron just on the tax rate with the securities restructuring I don't think it'd be a meaningful adjustment, but any any change to the tax rate that we should expect.
I think we're going to hold at 19%.
Saying that it would be 20% has started to move up but.
19% is better and part of that is we've been able to do some more tax credits and Thats had a pretty good benefit.
Okay. Thanks.
Yes. My next question on the line from annually from Sandler O'neill. Your line is open.
Good morning, everyone you've answered nearly all my questions just one quick follow up though.
Curious if you have the dollar amounts of the loan production on the dollar amounts of the pay downs.
We can give you kind of a high level.
Number hears though.
Production was somewhere between 900 Enett billion pay offs, you know kind of.
Between right around 900 kind of in that ballpark.
Gotcha.
Thank you yeah like I said, you've covered everything else. Thanks, so much you.
You bet.
Our next question comes from the line Jackie Bohlen from KBW. Your line is open.
Hi, Good morning, everyone morning, Jackie.
Hi, I'm wondering if you could provide us with an upbeat given some of the fluctuations in the securities portfolio as to where you're thinking about a target range of securities that Ron I know you mentioned, you're going to be purchasing diamond maybe deploying them gas, but just wanted to know where you're thinking that way so going forward.
I don't want to go below the 20% I could see it going up 21%.
No more just.
Bill.
I think thats the number I can give you right now Jackie I am truly hoping that excess cash goes into loans, but you've you've heard the comment.
Okay, So pretty steady from here, yes, and then I just wanted to make sure that I understand all the NIM commentary and how those different options play in with each other.
So essentially the actions that you took in September will have a positive flow through next quarter, because you'll get the full quarters effect and those Lynn.
That some of the other pressures from the adverse freight environment to keep the margin fairly flattish is that the methods.
Exactly right.
Okay.
Thank you.
Thank you.
One broader when I am probably for you Randy So you had an excellent year with M&A just in terms of announcing in closing deals and fairly rapid succession.
Most recently concluded you'll have one closing in Q3 Q4 Q.
How are you feeling about future acquisition.
Everything and you anticipated if that conversion takes place Q1 to be fully integrated and ready to jump into the next one just your updated thoughts on everything.
Yes, no with this so this was a record year in terms of announced transactions for us with the three transactions first national articulating Heritage and now state bank close to $2 billion in assets.
And the team I think has done an incredible job of working on those and closing them and then doing the integration.
I think the we continue to have the doors open we continue to talk to folks.
We feel if there is the right opportunity that Thats something we could act on next year.
But we're going to continue our disciplined approach to the market and just look for the for the best.
Really good banks good markets good people so we.
That may mean that otherwise.
You know is is on the table that it may need meaning that.
We just are seeing what we'd like to see it's just difficult to tell.
At this point.
Terms of the quality of the deal flow, but where the team is.
Muscle memory on acquisitions as sharp and so I think we'll get through the ones we have and.
If something very compelling appears animal we're going to take a hard look at it.
Okay.
And.
The implementation of diesel.
Any effect on how you think about deal announcement tiny in closing.
No we model that out Jackie we've taken a look at.
You know, how these would look with seasonal and without.
And.
Other than the optics of messy quarter, when you make an announcement, it's not going to it doesn't change our longer term strategy and how we feel about acquisitions.
Okay, great thanks to the color.
Welcome.
Our next question comes from the line that's been coffee from Janney. Your line is open.
Thank you good morning, everybody.
Tim really as we go look at your interest bearing deposits.
You have the opportunity to reprice those in the next quarter is it something that the markets, providing you an opportunity to do from a competitive standpoint.
The core deposits I think are pretty stable I think you saw us.
We didn't move a lot when rates went up didn't move a lot when rates came back down and thats kind of our contract with our customers were a steady stable and I don't see really much much change there.
Okay.
And in regards to a loan deposit ratio.
Is there a the level that you want to keep it at because it looks like it's going to be under pressure a little bit here within this next quarter.
But you get into 2020 2021 is there kind of a bottom level that you would like it kind of be able to staff.
Well loan to deposit actually improved this quarter with the addition of heritage. So.
Real happy to see that it's a it's under 90.
And don't see a big change in that going forward, we like kind of the ranges and right now.
Go higher we needed to but.
Probably like to keep it in this range it's in right now.
Okay.
All right the rest of my questions have been answered. Thank you.
You're welcome.
Again, ladies and gentlemen questions at this time superstar the number one on the telephone keypad again that smaller one that's the question.
Our next question comes from the line hub that your Clark from Piper Jaffray. Your line is.
Hey can you just give us the credit mark on the loan portfolio. So we could just switching from gross up the reserve to loan ratio.
I think it was 25.9 million last quarter.
This is angela and that credit Mark for this quarter with 2.9 million.
On the.
With all the acquisitions you've done it's.
Recall that the wondering around 26 million last quarter.
Yes, we want the collateral.
The total about count with 23.6 million, that's what we have left to amortize.
During the quarter with the acquisition of Heritage the credit Mark was 2.9 million, but that portfolio had such great rate.
Matt acquired loan discount with minimal it is only about 8000.
Okay. Yeah, I was looking for the 20 306. Thank you.
Hi.
Ladies and gentlemen, if you have questions at this time seem to press Star then the number one on the telephone Keith.
Again, it's far one.
Yes.
Hello.
Yes.
I would like to turn the call, but back to Randy Chesler, President and CEO Mr. Bank.
All right recipe. Thank you and thank you everybody for on the call for dialing in today really appreciate you taking the time when we hope you all have a wonderful weekend. Thank you for joining us.
Ladies and gentlemen. This concludes today's conference. Thank you joining wonderful day given at all.