Q4 2021 Glacier Bancorp Inc Earnings Call
[music].
Thank you for standing by and welcome to the Glacier Bancorp's fourth quarter earnings Conference call. At this time all participants are in a listen only mode. After the speaker presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your telephone.
Please be advised that today's conference is being recorded should you require any further assistance. Please press star zero I would now like to hand, the conference over to your host President and CEO of Glacier Bancorp Randy Chesler, Sir. Please go ahead.
Alright. Thank you Rajeev good morning, and thank you for joining US today with me here in Kalispell. This morning is Ron Copher, our Chief Financial Officer, Angela dose, our Chief Accounting Officer, Byron Pollan, our treasurer.
Tom Dolan, our chief credit administrator.
We closed out the fourth quarter and full year 2021 encouraged extremely.
Extremely strong loan and net interest income growth.
<unk> were better than what we expected and clearly shows that we are in some of the best long term growth markets in the country.
The glacier team and our unique business model enable us to build solid customer relationships and produce very strong results in all of our divisions as we continue to build one of the premier regional banks in the west.
I'll touch on some of the business highlights first and then provide some additional thoughts on the quarter and full year.
The loan portfolio, excluding payroll protection program loans had strong organic growth of $448 million or 16% annualized.
Our loan portfolio organically grew $1 2 billion or 11% annualized from the beginning of the year.
This was a record level of growth quarterly growth for the company.
Net interest income in the quarter on.
On a tax equivalent basis, and excluding triple P loans.
184 million, an increase of $29 4 million or 19%.
From the prior quarter.
On a full year basis.
Net interest income was $636 million.
An increase of 57 5 million or 10% over the prior year.
Core deposits continue to flow into our divisions organically growing $560 million or 13% during the quarter and growing three 3 billion or 22% annualized for the year.
Net income for the year was $285 million, an increase of $18 4 million or 7% from $266 million in the prior year.
Earnings per share for the year was a record $2 86 and.
Increase of 2% from the prior year.
Credit continued to demonstrate strength in all measures.
Ended the year with no real estate owned by the bank remarkable for a bank with a $13 $5 billion loan portfolio.
We declared dividends of $1 37 per share an increase of <unk> <unk> per share or 3% over the prior year.
The company has declared 147 consecutive quarterly regular dividend and has increased the regular dividend 48 times.
We completed the acquisition of all the Bancorp with assets of $4 1 billion, the largest community bank in Utah and the number one rated growth market in the country and the largest acquisition in the company's history.
In December we transfer the listing of our common stock to the New York stock exchange consistent with our longer term growth plans and outlook.
And finally, we are close to wrapping up the Triple T program that began in early 2020.
During that time, we've made almost 24000 loans for $2 1 billion.
At the end of 2021, only add $169 million of loans that have not been forgiven.
We expect most of these remaining loans with $5 million of net deferred fees remain to.
Can be forgiven in early 2022.
We saw excellent loan growth in all markets, with Utah, Arizona, and Colorado, leading the growth across our eight state footprint.
We're pleased to see the strong performance in commercial real estate lending growing organically $175 million in the quarter.
New loan production for the quarter was robust with a record $1 9 billion in new loans originated.
We updated our full year 2021 growth target last quarter to 8% to 10% and we're very pleased to end the year topping that range coming in at 11%.
We're starting 2020 with excellent momentum and a strong pipeline of new loans.
Core deposits continue growth continues to be surprisingly strong across our footprint driven by access with customer liquidity due to the unprecedented government stimulus reduced spending due to the pandemic.
Our success in establishing new deposit relationships.
As a result customers and businesses are beginning 2022 with very strong balance sheet.
More importantly, the stable and sticky core deposits.
Cost of seven basis points down six basis points from a year ago.
Noninterest bearing deposits increased $2 3 billion or 43% over the prior year and are now 37% of core deposits.
Total debt securities of $10 4 billion increased almost $5 billion or 88% from the prior year.
We continue to purchase debt securities with the excess liquidity from the increase in core deposits.
Net securities represented 40% of total assets at year end compared to 30% at the end of 2020.
We fully invest excess deposits.
The highly liquid and high quality investments with shorter duration, given the low but increasing rates with a plan of putting these deposits to work into loans as we continue to grow.
The company's net interest margin as a percentage of earning assets on a tax equivalent basis for the current quarter was $3 two 1% compared to $3 three 9% in the prior quarter.
The core net interest margin for the quarter less triple P less discount accretion and nonaccrual interest was three or 4% compared to $3 one 7% in the prior quarter.
Asset yields have decreased from the combined impact of the significant increase in the amount of debt securities and the decrease in yields on both debt securities and core loans.
The yield on debt securities ended the quarter at one 5% compared to 162% in the prior quarter.
New investments in debt Securities were added at $1, two 6% quarter.
It appears that we are close to a positive inflection point.
When the improving yields on new debt securities.
<unk> exceed the portfolio yield.
Yeah.
The yield on the loan portfolio ended the quarter at four 7% down 16 basis points from the prior quarter. We added $1 9 billion in new core loan production with yields around 4%, which drove the total loan portfolio yield down.
Not noninterest income of $34 4 million declined 453000, or 1% from the prior quarter and decreased $10 3 million or 23% from the same quarter last year due primarily to the reduced gain on sale income.
From residential mortgage.
The hot housing market, and refinancings slowed down a bit across our footprint.
Our biggest concern in the real estate business remains the supply of homes available for sale and the increasing cost of housing.
Noninterest expense includes $17 million of expense from all the Bank Division eight.
$8 2 million of acquisition related expenses.
806000 of increased compensation and employee benefits due to incremental overtime given staffing shortages in several bank divisions.
$1 1 million of expenses, primarily due the branch upgrades and 600000 of increased loan expense due to the strong loan growth.
Excluding the Alta Bank Division and acquisition related expenses non interest income non interest expense increased $5 $3 million or 5% from the prior quarter and decreased $1 8 million or 2% from the prior year.
Fourth quarter.
While the Triple T program is in its final stages of winding down with most of the remaining loans expected to be forgiven in early 2022.
I would like to recognize all of the glacier team for the exceptional work. They did on the Triple program over the last two years.
I'm very proud of how the team responded so quickly in order to help our many customers who are frightened and concern about their businesses at the outset of the pandemic.
It's a great reminder of the responsiveness of our model and our focus and commitment to main street businesses across the west.
Our combination revolve. The Bancorp continues to proceed very well we closed on that transaction October one and we continue to work closely with the Ulta team on the planning for our core processing conversion in mid March of 2022.
We are on track to achieve the targeted cost saves in 2022 that we identified when we announced the transaction in may of 2021.
All of that is a very good technology platform and we are studying many of the products that may be a good fit for our other divisions.
Tangible book value per share for the company increased in the quarter from $19 11.
To $19 33, 1%.
On a full year basis tangible book value increased 6%.
The glacier team accomplished a lot in the fourth quarter.
We had to deal with Covid in many markets and close all the bank the largest acquisition in our history and the team still achieved record results.
The loan growth, we experienced in the quarter was great to see.
And we think we are very well positioned to grow in 2022.
And in December we were pleased to be recognized as one of the best emerging regional banks.
By Bank Director magazine as part of its 2022 ranking banking study.
Which identifies the best banks in the United States based on quantitative metrics as well as a qualitative analysis of innovation and leadership.
So without let's keep that ends my formal remarks, and I would now like to turn the call back over to you to open the line for any questions that our analysts may have.
Yes, Sir as a reminder to ask a question you will need to press star one on your Touchtone telephone to withdraw your question press the pound key again Thats star one on your touched on telephone to ask a question. Please standby, while we compile the Q&A roster.
Our first question comes from the line of David Feaster of Raymond James. Please go ahead.
Hey, good morning, everybody.
Morning, David.
It was great to see the strong growth in the quarter and hear the commentary around the increased production.
I'm curious some of the puts and takes with that.
How much has also contributed to that and.
Maybe kind of what youre seeing a promote or economic standpoint, just the pulse of your local economies.
Just kind of how you think about growth into 'twenty, two and the composition of your pipeline and what segments, you're expecting to drive growth.
Sure.
Yes, it was very broad based across the footprint and as I noted, Utah had very strong growth.
This is all organic growth so.
They are.
We do very well they did very well that as I noted as well number one growth market in the country. So we're seeing.
Very very strong trends there, Arizona continues to benefit from the in migration from California. So that was very positive.
And so we.
We.
We like to see that Colorado continues their economy continues to do very well so.
I think that.
David the eight states that we're in are all doing very well the western United States continues to benefit from.
Lower cost of living.
Business friendly environment high quality of life, those things continue to draw people in.
On the lending side.
We continue to see people very confident to move forward with plans for buying properties in our markets.
As well as expanding addition, their existing businesses. So all those things are really kind of combined led to the type of growth that we were able to propose for the quarter.
Okay. That's helpful and then.
We hear a lot about inflationary pressures just kind of weigh in on expenses.
The industry you somewhat have a luxury of the altra deal, which provides some flexibility could you just maybe walk us through.
Some of the puts and takes with expenses as we head into this year.
With the upcoming conversion and some of the synergies from that as well as other investments that you might have come in just what do you think a good core run rate is.
How do you think about expense growth just cognizant.
Seasonally higher first quarter.
Yeah, and I'm going to ask Ron to comment on expenses.
Youre right there is.
A lot of a lot of moving parts, especially this quarter with the acquisition of Alta.
And.
I think we have a we have a good view of what we see that expense run rate looking like one do you want to comment on that yes, Hey, David.
So when you.
Call that we had the 134.
Noninterest expense and as Randy said in March eight $8 2 million of that with the acquisition related.
Yet.
That out of there than we are at a 120 $506 million and so.
We are estimating for the first quarter run rate.
Centers would be say, a $128 million maximum would be $1 30, but I think it'll be closer to the to the 128.
And so.
That's the run rate recognized in the.
Fourth quarter in mid March we're going to have the conversion.
For the Alta onto our system until there'll be some elevated merger related expenses that will identify but putting that aside the run rate for the first quarter of $1 28.
Okay. That's helpful. Thank you and then just kind of touching on new loan yields in the competitive landscape.
How is pricing trending on new loan yield do you think.
I mean has add on rates starting to trough or even potentially improve just given the move in the 10 year. It sounds like we're seeing it on the security side.
And then just any other comments from the competitive landscape are you seeing more pressure on structures or standards or is it just mostly on the pricing front and do you find yourself, maybe passing on more deals.
Sure. Let me just comment at a high level on loan pricing and that can.
To provide a little more color to your some of the other parts of your question overall so.
Loan rates are under pressure, so what we see happening we anticipate rates going up as expected.
Five year will re price a lot of our loans as a whole can point really hasnt moved it stayed relatively flat, we're hoping to see some movement there, but we also think with the excess liquidity in the market and the level of competition out there.
That any kind of increase it's going to be there'll be a delayed ability to.
So you get a full take full advantage of a rate increase because of the amount of competition.
Out there with the amount of liquidity that people have to put to work. So we're we feel that we're going to see those that improve its just going to take longer than it normally does when rates start to go up Tom did you want to comment on loan pricing and some of the second part of Davids question. The only thing.
I'll add to the loan pricing is.
The pressure seemed to be somewhat geographic balance some of the larger markets, we see greater pricing and structure pressure and it also depends on the size of the deal. So the larger the deal that we're looking at we generally see some some pressures there and then on the answer.
To answer the second part of your question on the structures.
We are seeing a.
An increase in competitive pressure on the structure side.
We especially in the larger markets on the larger deals we're seeing more of our competitors are operating non recourse and longer interest only periods. We're just not going to play and that we have.
<unk> passed on a number of deals to answer your question in the past couple of quarters that were due to structure and not pricing. So.
We will continue to.
To maintain our strong credit culture.
Okay. That's helpful and just kind of following up Randy just on the comments on potential fed hikes do you have.
Your updated asset sensitivity and pro forma for Alta and maybe how you might expect the margin to benefit.
And the first rate hike or two.
Sure so.
I'm going to environment comment on asset sensitivity, we've spent a lot of time.
Starting to look at that in anticipation of these rate increases. So Byron do you want to you want to comment on that sure.
We're optimistic about the rate environment, we are asset sensitive and we are more asset sensitive than we had been.
<unk> also moved yet.
In that direction, given their shorter duration and theyre greater concentration.
Prime based loans, if you look at our overall loan portfolio roughly 25% of our loans will mature or reprice. This year and then.
Addition to that we have a lot of cash flow coming off of our securities portfolio and that will give us the option to.
Either remix that cash flow into the loan portfolio or putting to work at a higher rate environment that we anticipate and so theres no question higher rate will be helpful to our bottom line complemented by all of that.
And our expected level.
That's helpful. Thank you.
Thank you. Our next question comes from Jeff <unk> of D. A Davidson your question. Please.
Thanks, Good morning.
Morning, Jeff.
Looking at the mortgage gain on sale, maybe a little lighter than I had expected I was wondering if.
Also had been running around a couple million dollars a quarter.
Was there any strategic change with that.
<unk>.
That platform or I'm, just trying to get a sense for what.
Glacier legacy.
Came in on gain of sale.
Outside and if there were any pivots to their book of business as you brought it in.
Yes, they've got a very very good mortgage business.
The change there Jeff is really just a reflection of what's going on in the overall market.
Originations just were down in Utah.
A lot of it is the issue of supply we are just getting to a point, where the housing is very difficult to find the England.
More realtors than houses in most of our markets right now so that just gives you some idea of the level of.
Our houses on the market. It gives you an idea of the level of the of the market. So really nothing more than we just saw a downturn in.
We have the platforms are up they're doing great.
It's just the amount of business that's out there to be done.
Was significantly off and the and the <unk>.
Fourth quarter, and Thats, primarily supply driven.
Yes.
Randy any thoughts on 'twenty two.
Backdrop for gain on sale.
Well, we we like our mortgage business, we really like the ultimate mortgage business and how they're positioned.
Some of the technology and they did.
Deploy we are going to rollout to the rest of the of our divisions. So very excited about that.
We still at this point.
Look at the MBA forecast there are calling for the market to be down about 30% over year over year will probably fall in line with that maybe do a little better.
We think we're in better markets, the new overall, United States and only the eight states where in our leaders in terms of <unk>.
Amount of activity in the housing and they are also leaders in housing appreciation price appreciation. So that's been.
And that goes back to the supply.
And the <unk>.
The number of units that come on the market. So refis are probably going to be dialed back a bit given rates are going to move up and purchases were in strong markets, but limited by the amount of supply that are going to be out there for sale.
Okay, and then just the.
Wanted to touch on credit.
You had a decent sized.
90 days past due balance that increased.
I think you've referenced what you brought over also added to that.
Yeah.
So first question is does that.
Balance <unk>.
A quicker resolution.
Resolution with that and then the second part credit related as you did see.
An increase in the 30 to 89 days of the early delinquency so any color on on that bucket.
Yes, Tom can cover that.
Really two things happening there that movement in NPA, which was really related to the acquisition and delinquency. So Tom do you want to comment on it yes, the over 90 and the increase in $30 million to $80 million was predominantly due to one relationship multiple credits on one relationship.
But I expect to be resolved this quarter, it's more of an administrative past it and we are in the final stages of resolving that.
I would expect that to be resolved here.
Fairly quickly.
Yeah.
Okay. So I think about $25 million in the 30 to 89 days and then even the 90 day past due that brought over from <unk>.
Out debt.
Again resolution expected in the first quarter.
Yes.
Okay.
That was it for me thanks.
Welcome.
Thank you. Our next question comes from Brandon King of tourists Securities. Your line is open.
Hey, good morning, good morning.
Brandon.
Hey, So first I wanted to touch on loan growth.
A strong year in 2021, a lot of your competitors are now expecting even stronger growth in 2022. So I just wanted to know how.
How confident are you were achieving similar growth of 11% in 2022.
Yes, Brendan this is Tom.
Tom.
We're looking towards.
Low double digits for 2022.
Pending some headwind.
Yourself.
The industry overall is really facing right now supply chain.
Increase in construction costs.
Elevated payoffs compared to historical averages all of those things are still headwinds, but we're fairly confident in the low double digits for 2002.
Okay, and just within that with the CRE, specifically I know higher rates could potentially mean lower payoffs is that kind of reflected in that outlook as well based off of what you're seeing with your customers.
Yes, I think theres, a theres a component there that certainly has an impact rates are so low today.
I'm not sure what difference 25, or 50 basis points increase with the may have on that but there's certainly an element of that that should help us logos payoffs down.
Okay.
And then deposit growth was also very strong in the quarter I was wondering what sort of deposit growth assumption is your current dissipating in 2022 and at the peak.
Loans will outpace deposit growth.
In 2022.
Yes, we do we think.
<unk> growth is going to be probably in the high single digits, where we see loan growth in the <unk>.
Low double digit so yes, we think there is things will slowdown has been an incredible year with the amount of deposits and every quarter. When we think it's just got to stop it continues but we're starting to see some signs that that's going to throttle back so probably around.
In the high single digits in 2022.
Okay, and then I guess, all that put together with that assumption I guess, we would.
Not much growth in the Securities book, correct deploying that cash more to loans is that a good assumption.
We hope so yes.
We're still going to see our investment portfolio grow Theres just enough cash coming in.
To do that.
But.
Our hope is that.
Given the strong growth rate <unk> seen in the fourth quarter and the full year 'twenty, one we carry that into 'twenty two.
As Byron noted, we've got the investment portfolio fully invested but short and high quality. So as those things roll off as those investments roll off and as new deposits come in we would love to put those to work at the higher yielding loans and Thats the plan.
Okay.
And then lastly regarding MMA closing with also bank transaction.
How likely could we see a mobile deal this year.
Based off of what you're seeing and your appetite.
Sure so.
We are so we continue to talk to folks we always keep the door open our focus right now though is to get all the bank closed and converted we closed it now we want to convert it in mid March.
And the EPS lift we get from doing that well is significant so we're going to stay focused on that I wouldn't expect that.
Anything in the M&A at the earliest and announcements.
The later part of this year late third quarter fourth quarter, if if at all this year. So we're we're keeping the conversations going we are.
Pushing the timing out because we want to make sure we get it all done right.
It's going really well and there's a lot of earnings there for us to recognize so we wanted to get that behind us and then.
If if the.
<unk> work out for us the probably the earliest you would hear an announcement nothing would I don't see anything closing in this year, but the earliest you'd seen announcement would be kind of in the late third quarter or fourth quarter.
Okay, and nothing has changed as far as what type of potential targets.
You will consider.
Absolutely not.
Sure.
We're still out we've got a wide range of.
Prospects that we look at from.
$300 million of $3 billion as we've said, we we went very large with Alta.
But that was a great opportunity.
<unk> put in front of us so I would expect.
Our traditional or historical wheelhouse around 752 1 billion five is where we're going to be focused but again, if something larger comes along that fits our strategic view, we're going to take a hard look at it and it's something a little smaller comes along that.
We think we can do very well with we'll take a look at that as well.
Alright, thanks for all the answers.
Welcome.
Thank you. Our next question comes from Kelly Motta of <unk>.
<unk> W. Your question please.
Hi, good morning. Thank you so much for the question.
I wanted to circle back.
Fences with also closing sorry converting in March.
<unk>.
So multiple clean clean quarter expense wise.
Any help with that.
Okay.
Correct.
Thanks.
Okay.
How that kind of nets out.
Maybe some of the inflationary pressure you're seeing in your markets.
I appreciate that that color on <unk>.
But I'm trying to ask.
That kind of straight away.
Yes.
Sure. So I think Ron gave the color on one Q. So we're expecting $1 20, a kind of a ceiling of 130 on the expenses for the first quarter.
Not including the M&A expenses.
Are the cost savings so when we announced the deal.
We did back in May of 'twenty, one we did identify 80% of the cost savings of 17, 5% of their noninterest expense.
We're on track to achieve those those are going to be more weighted towards the end of the year. So I think as you look at the third quarter.
We get the conversion done in March and then we'll start to see some of those things.
Start to show up in the second quarter and third quarter. So those are kind of more weighted towards the middle middle to end of the year Kelly as we see those.
Really kind of coming to fruition, we feel really good about achieving them.
Just we have to get through the conversion and some of those expenses that take place after that.
Got it understood and then I believe in your prepared remarks, you talked a little bit about how also had.
Some technology that anywhere.
Looking into other.
Other division just wondering if you could speak more broadly about cutting back.
Kind of the appetite for like Youre looking to do and how that kind of factors.
Okay. Thanks Terry.
Yes.
Okay.
Additional.
Increases.
Yes.
Thank you.
Yes.
Let me first start with the platform.
That alter brought to us and the technology there.
So we're taking advantage of a great opportunity for us at Jack Henry Bank, where a Jack Henry Bank.
Very good third party applications bolt it onto the Jack Henry core.
Where we can see this technology and evaluated in real time.
That's very.
That's been great for us and so there's a number of things.
But we do intend to rollout we're in the process of.
Focusing on the conversion and then be focusing on how to take those things out to our 17 divisions 16 divisions, not including Alta. So there are things Kelly like a commercial loan origination system that automates the loan process.
In a way that will result in some savings for us in 'twenty three.
Those are things.
Like a construction lending platform that will allow us to more efficiently administer construction lending.
<unk>.
How we process payments at the Teller line with.
A teller capture system.
That's going to be something that will reduce in less staffing needs in the branch.
So.
These are all things that we're looking at I would tell you in terms of meaningful investment.
<unk>.
A lot of this is the.
The upfront costs as part of the M&A expense and so we are because by buying this bank we have to.
Figure out what to do with these technologies a lot of that expense will not be recognized as if.
And in circumstances, if we didn't have a.
A deal or two a transaction to do so a lot of the you won't see a big Cliff expense in technology I think is probably what is underpinning your question.
Most of that is and has been included in our deal expenses in terms of the benefit of the technology. There will be some expense in 'twenty three we don't see any of that pushing us out of our 50, 455% efficiency range.
Be careful to maintain that.
But we also think depending on how these technologies are implemented there's probably some pretty good cost savings that we would see generally really starting to show in 'twenty three.
Got it. Thank you so much that was really helpful I'll step back.
Youre welcome.
Thank you again to ask a question. Please press star one on your Touchtone telephone again Thats Star one on your Touchtone telephone to ask a question.
Our next question comes from the line of Matthew Clark of Piper Sandler Your question. Please.
Hey, good morning, gentlemen.
I'm wondering.
First one for me just on the loan growth this quarter on an organic basis.
Within that commercial real estate can you give us a sense for.
Where the larger.
Contributions came from within your footprint or with by affiliate.
<unk>.
And whether or not there was any.
Larger deals embedded in there just trying to get a sense for.
I wouldn't say concentrations, but just whether or not there are a few larger credits that helped drive that incremental growth and maybe another way to ask it is what was the size of the what was the size of the largest three loans that you booked in the quarter.
Sure, Yes, there was.
Good broad based growth with Tom can give you a little more color on us specifically to your question about the makeup of the growth.
Sure Matthew.
On the CRE book, we're still seeing a lot of demand for industrial warehouse growth.
The business moves have followed a lot of.
And migration of the population. So we're seeing that we also saw some nice multifamily growth.
Construction related to CRE and multifamily as well in the quarter.
In terms of the size of the production.
Nothing out of line from what we've done over the past several years certainly there were some.
Eight figure credits that came through in the quarter.
But no individual credits.
Kind of that $20 million area. So for the most part.
The average loan size in the CRE book is about 600000 and that really Hasnt moved a tremendous amount I don't really anticipate us moving that much either.
Okay.
Very helpful. Thank you.
And then the.
Randy you had mentioned kind of maintaining that efficiency ratio in that 50, Florida 50.
The 5% range I think for this year correct me if I'm wrong.
But you've got a step up in expenses based on the guide you have got to 80% of the cost saves coming through by the end of the year.
You have seasonally lower.
Mortgage.
I heard you on the loan growth, maybe that that's kind of making up for some of it kind of low double digit loan growth and I don't know if you hit on the NIM outlook, but if any and I apologize if I missed it got a couple of calls at the same time here, but any kind of comments around the near term margin outlook.
No problem.
I'll ask Ron to talk about the margin, but you got it right.
We anticipate very very solid growth.
<unk>.
Still maintaining our target $54 55 efficiency range.
We see staying in that range in 2018 bonds as you want to comment on the margin yes.
Hi, Matthew.
The outlook for the margin, particularly in the first quarter is that we've had declining margin and we see it flowing particularly for the reasons that we've said.
Double low double digit loan growth and then with the high single digits.
Deposits coming in.
To put that to work at higher rates than what we did in the fourth quarter.
Fourth quarter.
To put on the <unk>.
Investment Securities again high quality short.
Four to seven year on them and the treasury predominantly what we brought those bonds. If they are 125 basis point.
Just with the rate movement that the U S Treasury curve.
System.
Last 60 days, we picked up 45 basis points.
And higher.
Higher rate so that.
Showing up that we're able to put on securities in the 170 to 180.
Range and Thats very incremental too.
Our margin so again, we want to put it into the loan portfolio, but in the meantime, we can put it into the securities portfolio. So.
The guide I would give on the margin the reported margin it should be somewhere between phase III.
305, and $3 10 somewhere in that range.
We're starting to see the embers of an inflection in <unk>.
We're optimistic.
Should continue again with low double digit growth in the loan.
The slowdown in the deposit they came across in 'twenty.
One.
We're starting to see that inflection point, all bodes very well for us to have good net interest income and stay in line with our efficiency ratio, 54% to 55%.
Great. Thank you and then just housekeeping on the tax rate.
Kind of moving around a little bit but.
Should we assume for the outlook this year.
Okay. Yeah, I was going to say, we're glad you asked about taxes, because we did want to comment on that because there was there was very high in.
EMEA and the consensus there was a very high tax rate in there. So as you know taxes are near and Dear to Ron's heart. So do you want to comment on those routes.
Thank you.
Yes, so it'll ramp up.
In the first quarter I would use 18, 5%, but it's going to ramp up throughout the year towards high at 1919, 5% and for the full year I would say it will be closer to that.
19% rate.
Given the.
The economy that we're in the growth that we're seeing.
As we've discussed.
Great. Thanks for the color.
Yes.
Thank you at this time I would like to turn the call back over to Randy Chesler for closing remarks, Sir.
Alright, Thank you Latif.
We want to thank everybody again for dialing in today, we know theres a lot of <unk>.
Activity towards at the end of this month and we appreciate you taking time to dial in today.
We wish everybody have a great a great Friday and a great weekend and thank you again for spending part of the morning with us.
And this concludes today's conference call. Thank you for participating you may now disconnect.
Okay.
Okay.
Hum.
Yes.
Okay.
[music].
Okay.
For the year.
[music].
Sure.
Okay.
Yes.
Okay.
Yes.
Okay.
Yes.
Yes.
Okay.
Yes.
Thanks.
Okay.
Yes.
Sure.
Yes.
[music].
Sure.
Okay.
Yes.
Okay.
Okay.
Yes.
Okay.
Yes.
Okay.
Sure.
[music].
Yes.
[music].
Yes.
Yes.
[music].
Okay.
[music].
[music].
[music].