Q1 2021 Glacier Bancorp Inc Earnings Call
Ladies and gentlemen, please standby Glacier Bancorp first quarter earnings conference call will begin momentarily again. Please standby your conference call will begin in two minutes. Thank you.
[music].
Okay.
Good morning, and welcome to the Glacier Bancorp first quarter earnings Conference call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time, Inc.
If anyone should require assistance during the conference. Please press star zero on your Touchtone telephone.
And as a reminder, this conference call is being recorded.
I would now like to turn the conference over to your host Randy Chesler, President and CEO. Please go ahead.
Alright, Thank you Carol and good morning, and thank you all for joining us today.
With me here in Snowy Kalispell is Ron Copher, our Chief Financial Officer, Angela dose, our Chief Accounting Officer, Byron Pollan, our treasurer.
Tom Dolan, our chief credit administrator, and Don Chery, our chief administrative officer.
Yesterday, we released our first quarter 2021 earnings and today, we are ready to review them.
We finished the first quarter of 2021, well positioned for the rest of the year.
We do business from some of the strongest markets in the country.
Record liquidity and our business model and people continue to attract new customers on.
I'm also happy to report that most of our 193 locations are now fully opened for business across our eight state footprint as COVID-19 cases decline and vaccination rates increase.
I'll touch on.
Some of the business highlights and then provide additional observations on the quarter.
Net income of $80 8 million, an increase of $37 5 million or 86% over the prior year first quarter net income of $43 3 million.
Diluted earnings per share up 85 cents, an increase of 85% from the prior year first quarter diluted earnings per share of <unk> 46 cents.
Gain on sale of loans of $21 6 million, an increase of $9 8 million or 82% compared to the prior year first quarter.
Non interest expense of $96 6 million, a decrease of $14 6 million or 13% compared to the prior quarter.
And an increase of $1 1 million or 1% from the prior year first quarter.
Bank loan modifications related to COVID-19 decreased $13 5 million from the prior quarter and decreased one 4 billion from the second quarter of 2020 to $81 3 million or 79 basis points.
Loans, excluding the payroll protection or Triple P loans.
Non performing assets as a percentage of subsidiary assets was 19 basis points, which compared to 19 basis points in the prior quarter and 26 basis points in the prior year first quarter.
Core deposits increased one 3 billion or 35% annualized during the current quarter and increased $4 5 billion or 40% from the prior year first quarter.
The loan portfolio increased $147 million or 5% annualized in the current quarter and increased $1 1 billion or 12% from the prior year first quarter.
Yeah.
The company funded 6500 Triple P loans, and the amount of $487 million during the current quarter.
The company received $426 million in Triple P loan forgiveness on 6800 loans from the U S small business administration during the corn current quarter.
We declared a quarterly dividend of 31 per share an increase of <unk> <unk> per share or 3% over the prior quarter regular dividend.
The company has declared 144 consecutive quarterly dividends and has increased the dividend 47 times.
Further highlighting the company's core strength pretax pre provision net revenue for the quarter was $100 million, which was up from the prior quarter of $99 million and up 28 million on 39% from the first quarter a year ago.
We think this is a very good measure of the health of our core franchise.
We saw loan growth on most of our markets with Montana, Wyoming, and Washington, leading the way we are trending to our 46.
Growth forecast that we've talked about previously.
Our pipeline of customer relationships larger than $5 million grew significantly in the first quarter and now stands at almost twice the level. It did at the end of the first quarter a year ago.
As I noted the loan portfolio.
11, 2 billion grew $147 million or 5% annualized in the current quarter.
If you exclude the liquidation of our residential mortgage portfolio the loan portfolio grew $252 million or 9%.
We continue to build on the 3000, new customer relationships, we picked up as part of round one triple P with about $135 million on this quarter's commercial loan volume coming from this group.
All of this growth is even more impressive when you consider that the glacier team processed over 4300 regular loans and over 13000, triple P loans, including new and those forgiven.
Core deposit growth was incredibly strong driven by excess liquidity due to the unprecedented government stimulus and the lack of spending due to the pandemic.
Core deposits increased $1 3 billion and at the end of the quarter totaled 16 billion. Most importantly at a cost of eight basis points down one basis points from the prior quarter.
Noninterest bearing deposits increased $586 million or 11% over the last quarter. We know that there is substantial growth in low cost core deposits will continue to add to our net interest income and position us extremely well to reinvest in new loans as the economy recovers.
Total debt securities of $6 4 billion increased $900 million or 17% from the prior quarter and are up $2 8 billion or 77% from the prior year first quarter.
We continue to purchase debt securities with the excess liquidity from the increase in core deposits and their forgiveness of Triple P loans.
Debt Securities represented 30% of total assets compared to 30% at the end of 2020, and 24% a year ago.
The return on our debt securities reflected the impact of lower for longer on interest rates ending the quarter at 181% down from 2.12% at the end of the prior quarter due to purchasing new securities at lower market rates.
Net security income was $27 3 million, which is about flat to the prior quarter.
We continue to fully invest excess deposits taking on cost as a cautious approach to new investments given current low rates and risk at some point of deposit outflows and as a result, our targeting a short average lives with high quality and highly liquid investments.
Non interest income was strong due to our better than expected mortgage business performance. The hot housing market and refinancings continued at a stronger than expected pace across our footprint.
It was a record first quarter for new lock volume and our gain on sale margin was up slightly over the prior quarter.
We expect those margins to decline in the next quarter slightly based on interest rate trends our biggest concern.
Our mortgage business.
Is the availability of an ample supply of homes for sale.
Noninterest expense was lower than expected due to the $5 2 million of deferred compensation expense from new Triple P loans and good expense management by our divisions.
Some of our expense saves were due to COVID-19, we have been we have open positions.
Do not able to find a ready supply of new hires on our travel on branch expenses reflect less activity, but we expect these saves that subside and expenses to return to.
A more normal run rate as the economy gets back to normal.
The company's net margin interest margin as a percent of earning assets on a tax equivalent basis for the current year was 374%.
Compared to four point <unk>, 3% in the prior year and the prior quarter and 436% in the prior year first quarter.
The core net interest margin of 356% compared to 376% in the prior quarter and four 3% in the prior year first quarter.
Core net interest margin decreased due to a decrease in earning asset yields and earning asset yields have decreased from the combined impact of the significant increase in lower yielding debt securities and a decrease in yields on both loans and debt securities.
Debt securities comprised almost 36% of earning assets during the current quarter.
<unk> to 32% in the prior quarter and 24% in the prior year first quarter.
Going forward, our margin will continue to be dependent on the incoming flow of new deposits loan growth and the yield curve.
The efficiency ratio was $46 seven 5% in the current quarter and 53, 4% in the prior quarter.
Excluding triple P. The ratio would've been $52 eight 9% in the current quarter, which was a 300 basis point decrease from the prior quarter efficiency ratio of $55 96.
So the glacier team all 3000 from Montana to Arizona once again demonstrated the commitment strength leadership and performance that sets them far apart from other bankers in their communities and in the industry.
So that ends my formal remarks today and I'd now like Carol to please open the line for any questions that you may have.
Randy if you have a question at this time. Please press Star then the number one key on your Touchtone telephone. If your question has been answered or you wish to remove yourself from the queue. Please.
Please press the pound key.
And we'll pause for just a moment.
The roster.
Your first question comes from the line of Mike Yeung with true list.
Okay.
Hey, Randy how does it go on Corning good.
I wanted to start maybe just with the high level trends you kind of touched on it a little bit with the.
Mortgage commentary, but just big picture you guys saw a lot of influx of activity and in migration as a result of the pandemic and the cash.
On the closing down of the West Coast.
Have you seen any of that sort of flow back the other way or is it still pretty strong enduring trend even at the reopening starts to take place.
You know from everything we can see at this point that trend seems to be sticky. We just have not seen the housing market as I noted.
<unk> the home sale market homes continue to be in very short supply when they do come on they're snapped up pretty quickly.
And so you know a fair amount on that is still.
Outside buyers as we would say not from the end market coming in and buying homes. So we've we've yet to see really any kind of a re trade where people decide they want to go back to the markets in which they came here from but.
So watching it but I'd have to say in the first quarter no. We did not see any signs of that happening.
Okay, and then I guess secondly, just on the you know.
From a large amount of deposit growth and liquidity flowing into the bank just curious from what the conversations you've had with other market presidents et cetera does it seem like permanent liquidity or temporary liquidity and then how are you guys thinking about.
Pulling that and leveraging that.
Going forward.
Yeah.
Well, let me.
Let me just kind of talk about our outlook there on I'll have Ron talk about our investment strategy.
Tied to that because obviously, we see this liquidity I think the team has done a very good job taking advantage of it and.
And.
Getting some nice interest net interest income growth on it.
On.
But.
We so we you know we had an incredible quarter of growth on deposits, we think thats, probably going to tail off a bit because.
On the stimulus payments that fueled a fair amount of that.
Or look to be at their end.
We're seeing the triple P forgiveness come in which is building on it yet as the economy gets stronger.
Excuse me and people have more.
You know places to spend money and feel more comfortable taking trips and doing other things.
We expect to see some of that flow out a bit.
In terms of but overall I'd say it's weak.
We feel it's very sticky most of that that's why I stress the core relationships or the core deposits are in our core what we would call core deposits. So we feel like theyre on the relationship accounts.
So any if there is a slow slower growth rate. There I think we will see that overtime and Ron do you want to comment on the you know the.
Our investment strategy with those excess deposits right, Yeah, Hi, Michael.
Just to be clear, we strongly prefer loan growth.
No.
But in the meantime, as deposits are flowing in.
We will park them into the investment securities portfolio.
And so that as you've seen the dollar increase.
Because thats where.
That's the best deal, we can get other than through the.
Loan portfolio. So the yields that were getting were slightly higher than what we were getting in the fourth quarter.
We're up to 110 to 115 basis points and we're also thinking.
In the residential mortgage backed security agency back.
We've moved off the 10 year into the 15 year on.
On a short weighted average life and that's really key to the strategy going forward. So we're getting cash flow off of that and as rates rise on that they rise more we can all predict what that will look like over the course of the year.
We think we will bode well by what we put to work one thing I want to point out is we're not trying to time the market, we're not holding back large amounts of cash.
Timing of the market you get lucky or you can even think that we're pretty pleased with that one thing I'll point out with the cash flow the federal stimulus that came in.
We were in the month of March put seven.
$750 million to work only had 15 days of that so we think that'll bode well for the fourth quarter.
Next next quarter.
Okay. So it sounds like just assume sort of a ratable deployment of that.
Excess liquidity flow then.
There's a willingness basically or theres no hesitancy about kind of the margin compression that'll be associated with that.
No we are.
I mean, I'm not thrilled with that but that's the result of what we're doing and we're much more focused on.
Net interest income to grow earnings to grow EPS ultimately fund dividends. So that's.
That's where we are on.
I cant defy gravity I think I've said that the last four quarters. So I'll just keep repeating that.
Fair enough.
Okay.
Your next question comes from the line of Jeff <unk> with D. A Davidson.
Thanks, Good morning, good morning, Jeff.
Randy maybe I'll, just kind of dip into the market's a little bit you mentioned that the Montana, Wyoming, Washington kind of leading the charge.
That is if your other states.
Economic Laggards, However, you think nationally.
Maybe it's just a timing thing but.
On the back Nevada, Utah, Colorado.
Do you feel like it's just a again.
A few of those states leading but.
I guess the balance of the footprint.
What else are you seeing on a on a growth perspective.
The footprint is extremely healthy.
If you look at Idaho, Montana, Utah, Arizona, Washington, There 1234, and six in terms of home price appreciation.
And so we think we're in some of the best states in the country to be doing business. The leadership of those states that surprised us.
One we talked about it internally we think.
It's probably knock on a hold I think it was a first quarter event, but a fair amount of that is because those states probably came out of COVID-19.
Much quicker than the rest of our footprint in that.
They were open.
Sooner they had less restrictions going through it and I think that's why we're seeing the loan growth the leading in the first quarter coming from those states.
Got it yeah, particularly I guess eastern Washington versus the western side, So Zach.
Exactly.
On a related front.
I guess, you mentioned real estate and typically.
Bank M&A could can follow that that.
That activity as well and I guess as we've seen deals in the southeast in California have been pretty active I guess are you surprised that the Rocky mountain has been.
The region has been less active and I know theres less charters, but your thoughts on on M&A.
You guys had been quiet for a bit but.
Any thoughts on <unk> on the acquisition outlook.
Yeah.
So I'd start the timeframe because of the pandemic in 2020, we lost a year or so.
We previously commented you know really started to pick things back up in the December timeframe.
I I think you know.
I don't think Youll see much difference over time that the west.
You'll see a fair amount of activity.
Measured by the amount of <unk>.
Phone calls that we've received and people who want to talk.
About transactions.
It's very busy.
So.
I think some on the other parts of the country.
Maybe moved a little quicker.
But.
I just think thats timing.
I think maybe the <unk>.
Maybe the folks some of the folks on the West we're just a little less.
In a hurry and wanted to see the full result of get fully comfortable with the outlook.
Due to COVID-19 and making sure that you know.
You could not only.
There's two sides to this there is the buyers being comfortable that they can assess.
You know a a good quality bank and understand the risk and the sellers interest in making sure that they sell at a time when they can get closer to their full full value. So I think those two things are coming together have come together here recently and I think over time over this year I would expect you will.
Don't see a big difference between the west and the rest of the country.
Got it okay, and maybe last one just a housekeeping and maybe for Ron.
The deferred comp there.
The release says, it's an increase of $5 2 million was that what was the total and maybe what is your generally historical level.
There just to try to peg I got your comments on total expenses maybe a.
A return to more of a normal rate.
COVID-19 impacted I.
I guess benefit to the cost side, but first the deferred comp and then maybe just kind of overall expense levels.
Yes, so on the deferred comp as we originate these PPP loans.
Because of their.
A bit unique how we have to comply with all the FDA rule.
Find the cost to the origination of those and so if you take the.
$5 2 million.
By by the units, you'll see what what we basically.
Out there on average so PPP has its own unique.
Unique set of loans.
When you then look at any other loans that we have.
Commercial real estate named our category we have.
Compensation charge that we defer over a long lived assets and that as that happens every month.
All banks do that except for the very very small bank.
So thats on Ron I'm trying to get Okay. Go ahead no go ahead.
Just I am trying to.
Understood the mechanics, there, but the.
Increased $5 million I'm, assuming it was heavy PPP impact but.
I guess, what was that last quarter I'm trying to get a level of generally historical deferred comp.
On the PPP runs away.
What is that.
Level Robert too.
Ballpark.
So.
Great.
Yes.
Just looking at the PTP, if I'm understanding your question.
On the fourth quarter since we didnt really originate any PPP loans there was zero.
Our comp associated with that.
But are you looking beyond the PPP.
No I guess that helps.
If you basically say deferred comp related to PPP was.
<unk> zero last quarter.
You saw a $5 million increase which was largely Pvp then.
The other deferred comp thats in the number but don't really to mention that but.
So thats basically the piece that would effectively normalized going forward.
<unk> Yep Yep, exactly alright, and then on the.
<unk> expense.
Everybody thought our noninterest expense went down.
Just to get to the bottom line. So we're.
Estimating a normal run rate of $105 million give or take a little bit either side by 105 would be a good run rate and so the way I get there just for everybody's benefit.
You take the.
I'm looking at our non interest expense summary, the comp and employee benefits went down to $62 5 million will add $505 too so let's call that $67 million 67 five.
I think that that will hold because in that number we had an increase in head count during the first quarter of 14.
Those salaries were Frontloaded, we were able to put people on to work.
At the start of the year you also notice that we had the FTE count went up by 24% that reflects the overtime pay you heard Randy talk about that.
The work we've been doing on the PPP won forgiveness round two.
Getting the new loans, then from the conference we picked up from a round number one so everybody has been really busy plus.
We've had the higher FICA higher employment taxes.
So with all that said I am comfortable with 6700 $68 million run rate for comp.
I'm going to move to the other expense line.
The 6 million dollar reduction there.
<unk>.
$3 million about half of that.
Not sustainable.
Part of that is <unk>.
So busy taking care of our customers on PPP round, one round to that.
And then just think about that just the COVID-19 impact. So we haven't spent as much money on what I would call the business development side of the house the travel.
Third party consulting we have been just very very busy.
Doing that keep in mind also in the fourth quarter last year, we talked about in January we did a lot of year end cleanup. So we could start the year clean for 'twenty one.
But of that $6 million on other III.
Only about $3 million of that will occur again.
I wanted to go back for a second on comp and employee benefit because we were down $8 1 million I've explained five to that remaining two nine or $3 million that is not sustainable because that really relates to the fact in the fourth quarter, we had higher accrued expenses for the really good performance that we're seeing.
That won't.
Won't happen again, so when you boil that all down that just leaves all of those other expenses advertising on occupancy.
We think though.
Are the right level health day, there everybody can see that other real estate on its only $12. We don't have a lot of <unk> that that's a real blessing.
And then I'll leave it there but 105.
Is the real run rate, we think everybody should go with.
Great Thanks, Ron and Randy I appreciate it.
Welcome.
Your next question comes from the line of Matthew Clark with Piper Sandler.
Hey, good morning.
Good morning, Matthew.
I just wanted to circle back to the.
On the balance sheet growth related question.
I think 4% to 6%.
Loan growth X P. P is still the guide for the year on your kind of on pace for that.
But what I'm trying to get at is just your overall thoughts on NII growth whether it's on.
On a reported basis overall with PPP or without.
Yeah, Matthew it's Ron here so.
Basically net interest income was pretty much flat compared to the fourth quarter.
So we see that we're going to be able to hold the loan yields to stay around $4 20 for new production.
But as well.
When we put more dollars to work in the investment Securities portfolio. We think that's the way we're going to be able to maintain the.
Net interest income as I mentioned, we put a lot of money to work in the third quarter, but excuse me in the third month March.
So well pick up that benefit as well, but.
No we feel comfortable that we'll be able to maintain grow I should say our net interest income.
Okay.
And then.
Can you remind us.
Just how much in the way of round, one PPP fees left that.
You have left and how much in a room to just not sure what the kind of growth coupon there or maybe net coupon.
Okay. So that.
The net deferred fees remaining.
PPP round one at the end of March is roughly call it on a quarter million $6 5 million.
Brown won.
And then.
On round two.
We've got just under $22 million.
The remaining.
Thank you and that's over a longer lifestyle right.
Yes.
Okay, and then just lastly on the mortgage banking piece.
Can you.
Give us the amount of loans sold in the quarter.
This quarter and maybe last I'm trying to get at a gain on sale margin and just wanted to also verify if there were any MSR related marks in there I can't remember if you guys doing servicing.
So Ron do you want to talk about the MSR and then I'll cover the.
The sale.
Yes on the.
On the MSR.
Reused on lower cost or market. So we're not.
Writing those off but.
Fee associated with that is for 25 basis points in the margin calculation.
So that that's been pretty pretty steady for us.
Again, some bank mark to market.
Quarterly we have not made that election law.
And in terms of loans sold from the corner.
Residential loans, so that was about $490 million from the quarter.
And how does that compare to last quarter I guess from look trying to get.
Our gain on sale margin was up slightly so just slightly yeah, we sold last quarter, just about $680 million.
Okay. Thank you.
Your next question comes from the line of Jackie Bohlen with K B W.
Good morning, Jackie.
I noticed that you repaid just a real small amount of sub debt in the quarter. So just wanted to get the thoughts behind that and if you might look to do any other pieces.
So the only sub debt, we paid was up $7 $5 million and really with tier two that it was about hunting week.
Picked up when we acquired inner Mountain Bancorp first security bank in Bozeman.
Hi.
<unk> had a very high coupon.
And five eight so we.
Paid that off on January the fourth I'm happy to report that with $500000, we will not pay out.
Because we were able to to retired it got to the call date and so we promptly.
Paid at the all of the other sub debt is really trust preferred security.
Dirt cheap capital by any stretch.
So we're going to keep that of course and that really is a liability for GAAP purposes on our financial statements but.
Tier two capital remember it used to be tier one, but because we crossed $15 billion. Then we did an acquisition it got reclassified tier two but its still in our total risk.
Our risk based capital.
Okay, great. Thank you for the color and that's it from me.
Your next question comes from the line of David Feaster with Raymond James.
Hi, Good morning, one I just wanted to start on.
The increasing in demand and just the trends in the pipeline just curious how much of this is from existing clients that are just more confident in the economic improvement starting from advanced versus new customer acquisition from from new hires and maybe just on.
On the migration.
New clients from the PPP program.
Sure Tom.
Tom do you want to cover that sure on the existing.
<unk> pipeline.
Little difficult to nail down an exact but I would say about two thirds of the pipeline is existing customers.
Last year there were.
<unk> that were put on hold until you know on.
Customers got more comfortable with what they were seeing on the markets and all that.
With everything for the most part are reopened.
Customers comfortable spending capital.
That's what we talked to you about.
About two thirds, one third split on the Triple P. We've made some nice volume there of the 3000 customers, we've we've been able to.
Bring over a pretty large share of that.
Total loans to date on those customers that we've been able to bring over with realm on triple B, It's about $207 million total since the start of the program.
Okay. That's great and then just Randy following up on your commentary about the pipeline of customer relationships over $5 million being up pretty significantly.
I'm just curious how much did that strategic looking to go maybe upstream a bit versus just market demand and some fallout from some of the larger banks not servicing the lower end of that middle market well.
On customer migration from PPP.
Yes.
There is not a change in strategy I think is just a reflection of.
The activity levels in the market.
And we are.
Picking up some good loans from some of the other players in the market.
Some of the larger banks continue to.
Be distracted so that's been very good for us as well so really no change there.
Just something we talked about this quarter because of how significantly.
That particular area has grown so it's almost double when you look at that pipeline, where it was a year ago and I think it's more a reflection of the strength of growing strength of the markets than it is a change in our direction.
Okay.
And then just wanted to touch on any upcoming investments that you might have whether on the technology fraud or just any other projects.
Talked on the past about it kind of on ATM upgrade and deploy more Atms.
I wanted to get an update maybe where you were at on that and any other strategic investments or opportunities that you might have on the horizon.
Sure well I mean, we continue to make strategic investments specifically in technology, we do that.
Trying to keep.
Without the Triple P <unk>.
<unk> $54 55 range on the efficiency. So we feather those investments in and we'd like to keep our efficiency stable and non experienced any kind of cliff effect of big investments at one time and also because we believe these projects are better executed and a bite size fashion than just me.
Aching big bets on technology.
Well, we call immuno have raised a curtain strategy, where everything is put together. So it's worked very well for us.
We are evaluating investments in the ATM fleet.
<unk>.
That's underway I think we are going to bring some consistency there and I think positioning ourselves well for the future that distribution outlet.
Pretty generic today, but we want to make sure as things change, we're well positioned to use that distribution more strategically if the need arises.
So that's that's one area, we've talked about our commercial card business. The investments we've made there that's continuing to grow very nicely.
Very strong rate.
Yes.
We really penetrate existing customers with that product.
Rather than brand new business line. We're just go into customers. We already have in displacing people, who are offering that product to them. So that investment has gone well.
The third big one is.
Our account opening process we.
Launched a virtual account opening process in the middle of the last year very well received we are now going to roll that out too.
Our branch system.
Deploy that so I think that that's another area.
But again, David we do all these against the backdrop on managing to that 50, 455% efficiency and that will continue doing that.
Okay, that's great color. Thank you.
Welcome.
Your next question comes from the line of Tim Coffey with Janney.
Great. Thanks, good morning, everybody.
Morning, Tim.
Randy can you maybe provide a little bit color on the forward direction of your on balance sheet residential mortgages.
Yes.
So.
We do service, we both the portfolio and we service for the agencies.
We've been very opportunistic in how we've grown that.
And it's really based on our assessment of when we originate loans whats the best most economic favorable economics for us on how to deploy that mortgage so whether we hold it whether we sell it or whether we sell servicing retained really just drives.
But that portfolio.
Okay.
Alright, Thanks, that's helpful.
And then just.
What kind of answer. This question has been asked a couple of different times on this call.
Kind of curious about how long you think the current air pocket that we're in in terms of say stronger loan growth.
On balance sheet excess liquidity, how long do you think that period last.
Well I would the first part.
<unk>.
The growth aspect.
Don't view that as an air pocket.
We view that as a very.
Longer lasting trend.
So we'll get back up and look at the strength of the markets that we're in and again this is relative to our geographic footprint.
We have.
A lot of activity on our eight states that's very positive.
All the way from Arizona up to Montana, Arizona.
Fifth in the nation and tech job growth, that's what they're projecting Utah economy ranked number one among all 50 States U S News and World report.
Reno was ranked number 425 best performing large cities.
So five of the eight states, where in the unemployment rates lower than the U S. Average so all those things I think bode extremely well for growth.
And migration on population and we think the business investment follows that to serve a bigger population and so.
That's a longer lasting multiyear dynamic that we feel very good about on.
On the deposits.
I think that's probably going to be the certainly the quarter. We had this quarter was exceptional that kind of deposit growth. We just see that tailing off over the next.
Couple of quarters a bit.
Because the stimulus payments arent coming in that was part of what fuel than deposit growth.
We are we got a tape over quarter of $1 billion of of stimulus payments.
And.
As part of that.
And also that the pent up.
Demand is there and I think as people have more ways, both businesses and consumers have more ways to spend their money.
I think youre going to see some of that outflow. So those the deposits probably we do see that trending down a bit.
On the market growth rate as I said, we feel good about over a long period of time here.
Okay, and then on just kind of on the deposit side.
So far this month have you seen any change in the velocity within those deposit accounts.
Just in April.
I'd say from what we can see at this point you know the we have not seen a big change.
But I think it's a bit it's a bit early.
And I think as for the factors I cited were likely to see a bit of a downshift.
Right. Okay. Okay. Those are all my questions. Thank you very much. Thank you welcome.
And once again, if you have a question at this time. Please press Star then the number one on your Touchtone telephone. If your question has been answered or you wish to remove yourself from the queue. Please price per pound key we have a follow up question from the line of Matthew Clark with Piper Sandler.
Hey, just a quick one on the on the round two of the PPP fees are you guys, assuming a five year life are you assuming something shorter more something maybe more realistic.
So round two we put those on a five year schedule.
Okay. Thank you, yes, you bet.
Yes.
Okay, and I'm not seeing any questions in the queue. At this time, so I'll turn the call back over to Randy for any closing remarks.
Well, thank you Carol for managing the call today.
And I want to thank everybody, who dialed in for for spending some time with us today and have a great day on a wonderful weekend. Thank you.
Ladies and gentlemen, thank you for participating.
And have a wonderful day.
Ill disconnect at this time.
[music].
Yes.
Moving on.
Hum.
Yes.
Okay.
Good day.
[music].
Yes.