Q1 2025 Glacier Bancorp Inc Earnings Call
Dr. Rulis, Matthew Clark, David Feaster, Kelly Motta
Thank you for watching!
Speaker Change: Well good morning, and thank you for joining us today with me here in Kalispell is Ron Copher, our Chief Financial Officer Tom.
Tom Dolan, our chief credit administrator.
Angela dose, our Chief Accounting Officer, Jeff Meredith, our Chief investment officer, and joining us on the phone as Byron Pollan, our treasurer.
Speaker Change: I'd like to point out that the discussion today is subject to the same forward looking considerations outlined starting on page nine of our press release.
Speaker Change: We encourage you to review this section.
The positive trend of margin expansion, driven by lower deposit costs and higher loan yields continued in the first quarter.
Speaker Change: Expense control was solid credit performance continued to be excellent.
Speaker Change: Diluted earnings per share for the current quarter was 48 cents per share an increase of 66% from the prior year first quarter diluted earnings per share.
Speaker Change: Net income was $54 6 million for the current quarter, an increase of $21 9 million or 67% from the prior year first quarter net income.
Speaker Change: The net interest margin as a percentage of earning assets on a tax equivalent basis for the current quarter was 3.04% an.
Speaker Change: An increase of seven basis points from the prior quarter net interest margin and an increase of 45 basis points from the prior year first quarter net interest margin of 259%.
Speaker Change: The margin has increased five quarters in a row and this is the first time the margin is north of 3% in the last two years, we expect this trend to continue throughout the year.
Speaker Change: The total cost of funding, including noninterest bearing deposits of 168% in the current quarter decreased three basis points from the prior quarter.
Speaker Change: The total core deposit cost, including noninterest bearing deposits of $1 two 5% in the current quarter decreased four basis points from the prior quarter.
Speaker Change: The loan yield of 577% in the current quarter increased five basis points from the prior quarter loan yield increased 31 basis points from the prior year first quarter.
Speaker Change: Total deposits of 26 billion increased $87 1 million or 2% annualized during the current quarter.
Speaker Change: Total loans of $17 billion decreased $48 million from the prior quarter due to accelerated payoffs.
Speaker Change: So we don't expect this trend to continue and still feel good about our loan growth outlook for the year, our customers acknowledged a certain amount of uncertainty in the economy, but most have not indicated they're going to pull back on projects.
Speaker Change: We had solid expense control in the quarter with noninterest expense of $153 million, which is just about flat to the first quarter a year ago.
Speaker Change: Non interest income ended the quarter at 33 million, which increased 9% versus the first quarter a year ago.
Speaker Change: While our credit portfolio continues to perform at near record levels.
Speaker Change: We increased our allowance for credit loss to 122% of total loans from 119% last quarter.
Speaker Change: Now we did this out of an abundance of caution given the current uncertain economic environment.
Speaker Change: We don't expect to see material credit deterioration in 2025 and remain optimistic about the future, but wanted to be prepared if conditions change.
Speaker Change: At this point, we don't expect to increase our allowance for credit loss above 122%.
Speaker Change: Yeah.
Speaker Change: Tangible stockholders' equity of $2 2 billion at the end of the quarter increased $67 million or 3% compared to the prior quarter and increased $147 million or 7% compared to the prior year first quarter.
Speaker Change: Tangible book value per common share of $19 and 28.
Speaker Change: The current quarter and increased 57 cents per share or 3% from the prior quarter and increased by $1 28 per share or 7% from the prior year first quarter.
Speaker Change: And we declared a quarterly dividend of 33 cents per share.
Speaker Change: We have declared a 160 consecutive quarterly dividends and increased the dividend 49 times.
Speaker Change: The Glacier team continues to do an excellent job taking care of our existing customers and welcoming our new customers and acquisitions.
Speaker Change: In 2024, we closed and converted two transactions during the year, our purchase of the Rocky Mountain Bank branches in Montana, and the acquisition of Wheatland Bank in Eastern Washington, totaling approximately $1 2 billion in assets.
Speaker Change: And in the beginning of this quarter, we announced the proposed acquisition of bank of Idaho, a one $3 billion bank with locations in eastern Idaho, Boise and Eastern Washington.
Speaker Change: This is a great acquisition for glacier, because it's strategically expands our presence in several high growth markets, where we already have a presence.
Speaker Change: We have now received all regulatory approvals and expect to close this acquisition at the end of this month.
Speaker Change: Moving from announcement to closing in under four months.
Speaker Change: Over the last few years, we have demonstrated that we can find good banks in good markets to partner with regardless of the broader M&A environment and quickly get regulatory approvals and move to closing with certainty.
Speaker Change: We believe this will work to our advantage in times like the present, where fewer buyers have a strong currency to offer a fair deal and the M&A experience to provide the confidence of getting to closing.
Speaker Change: So that ends my formal remarks, and now I would like to turn the call back over to the operator to open the line for any questions that are analysts may have.
Thank you.
Speaker Change: To ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, one moment as we move to our first question.
Speaker Change: Okay.
Jeff: Our first question comes from the line of Jeff <unk> with D. A Davidson. Your line is open. Please go ahead. Thanks.
Speaker Change: Thanks, Good morning.
Speaker Change: Good morning, Jeff.
Speaker Change: Just wanted to reorient on on the margin discussion you guys had laid it out pretty well I think you mentioned previously you had close to $2 billion in loans repricing. This year end and rolling off some higher cost funding and sort of just checking in on that structural margin progression Randy caught your comments about momentum.
Speaker Change: Expected to continue but.
Speaker Change: More detail on the margin front would be would be great.
Speaker Change: We have a bearing on the phone so Byron do you want to talk about the margin trajectory.
Speaker Change: Sure. Jeff. This is Byron I would say, we do continue to see growth throughout the year all of the structural drivers that you mentioned of our upward margin trajectory are still in place.
Speaker Change: We see elevated securities runoff in 2025, we will have more low yielding investment investments maturing. This year that will help margin, we see the potential to pay down high cost <unk> borrowings. We did we did pay off $280 million that matured in March we have a little over $1 billion.
Speaker Change: More maturing before the end of this year that will be very helpful. We had the loan repricing that you noted earlier.
Speaker Change: And we've got a new loan production rates are fairly strong right now I would say in addition to that bank of Idaho Thats. That's coming on will also provide some margin lift and so all of the structural drivers that we see are still in place. Those are very strong dynamics that will be improving our margins throughout the year.
Speaker Change: I do think it's important to point out here that our margin trajectory is not fed dependent.
Speaker Change: All of the things that I, just mentioned will drive margin expansion regardless.
Speaker Change: That activity. So that's I think an important thing to understand about.
Speaker Change: The trajectory of our margin we did talk on the last call about our full year guide and in the area of $3 20 to $3 25, I still feel very comfortable with that guide I think we will I think will end up in that range all told.
Speaker Change: For the full year.
Speaker Change: And Byron I appreciate that that's great.
Speaker Change: Thank you Mike when you referenced the bank of Idaho deal are you talking about.
Speaker Change: Both their core margin, but also accretion.
Speaker Change: I guess to clarify that do you have that.
Speaker Change: We expect a discount accretion.
Speaker Change: Have you released that number.
Speaker Change: We don't have the all the discount accretions, yet, but just just ballpark. It I do think bank of Idaho, just just with their kind of core margin plus the accretion that will be that will be helpful. Our estimate right now and of course this could change once.
Speaker Change: Once the discounts and everything come in and are finalized, but right now I could see bank of auto contributing four basis points of margin lift.
Speaker Change: To the entire organization. So that's that will be very helpful.
Speaker Change: Great. Thank you.
Speaker Change: I guess, maybe check back in with Bryan on the expense guide.
Speaker Change: Once again kind of on that on the low side I think you mentioned there is some variable performance based comp that maybe the loan growth.
Speaker Change: Being modest.
Speaker Change: Helped on that but again, just an update on that expense.
Brian: Yes, Jeff Brian here I appreciate that.
Brian: Just to put everybody on the same starting point just want to reiterate our core non interest expense guide for 2025.
Brian: The range of $1 $51 million to $154 million per quarter.
Brian: In the January call.
Brian: Lean towards $154 million in there.
Brian: The first quarter, and then stepping down $1 51 to $1 52 per barrel.
Brian: In the quarter and for the first quarter, We did report a 151.
Brian: 3 million, but that included as we've identified in the earnings release of $1 $2 million favorable gain on the sale of a former branch.
Brian: $600000 of merger related expenses.
Brian: So when you wear bird those two items out.
Brian: Frank our core noninterest expense to about $152 million for the third quarter and Thats a difference of $2 million.
Brian: Compared to the guide of 154.
Brian: Two primary reasons for that we slowed our hiring in the first quarter, we added only 17 FTE.
Brian: We also had about.
Brian: About $800000 less extent than in.
Brian: Anticipated.
Brian: For third party consulting.
Brian: We continue to be cautious in spending due to the market volatility the economic uncertainties that.
Brian: Within that first.
Brian: Third quarter.
Brian: Let me continue.
Brian: So just to repeat before we consider the impact of the bank of Idaho.
Brian: For the remainder of 2025 to three quarter, we are maintaining our core organic noninterest expense guide of 151 to $1 $52 million per quarter now.
Brian: Layer on bank of Idaho.
Brian: We said back in January our bank of Idaho would add $9 million to $10 million per quarter of non.
Brian: Non interest expense that is after the savings that we modeled in.
Brian: We are going to close instead of June 30, we're going to close on April 30 back when well complete the legal acquisition.
Brian: So far the second quarter.
Brian: Non interest expense.
Brian: Ed you want to add for your model of $6 million to that Guy. So in combination the guide would be $157 million to $158 million for the second quarter.
Speaker Change: And then for the third and fourth quarter of each.
Speaker Change: You would want to add $9 million to $10 million per quarter for the guide.
Speaker Change: And so combined the guide then.
Speaker Change: Q3, and Q4, each would be a range of $160 million to $162 million and just as one more reminder.
Speaker Change: Core non interest expense that would exclude merger related expenses.
Speaker Change: Their unique items and if we had any additional gains on.
Speaker Change: Dale a former branch building.
Speaker Change: Okay very thorough Ron thank you.
Randy: Sorry, if I could squeeze one more in there Randy.
Randy: You've added a more detailed kind of southwest footprint and potential M&A interest in your deck I guess any any development on discussions in Oklahoma and Texas on that end.
Randy: Yes, no I appreciate.
Randy: You kind of referencing the clarification that we put in the investor deck, we been in the southwest since 2017 with our acquisition of foothills Bank expanded at five years later with the state Bank of Arizona. We're now one of the largest community banks in the market.
Randy: So very very happy with our experience down there, but given all the questions. We had at the beginning of the year around M&A and the expectations, we clarified that in our investor deck. So we have our mountain west.
Randy: Our region as well as southwest.
Randy: Within the southwest and we have conversations.
Randy: Going in both of those areas right now and so we've looked at in the southwest.
Randy: Those other states over the years have not found.
The right partner for us but.
Randy: We do have ongoing conversations there is a lot of really good banks in really good markets in the south southwest and mountain West So Jeff where.
Randy: As you know.
Randy: Wheatland was a negotiated transaction bank of Idaho was a negotiated transaction as a result of building relationships over a period of time and we continue to do that in both those areas.
Randy: Thanks Randy.
Speaker Change: Thank you one moment as we move on to our next question.
Speaker Change: And our next question is going to come from the line of Matthew Clark with Piper Sandler. Your line is open. Please go ahead.
Matthew Clark: Hey, good morning, everyone.
Good morning.
Matthew Clark: Couple more questions on maybe more of a near term margin.
Matthew Clark: Just the spot rate on deposits at the end of March.
Matthew Clark: The average margin in the month of March we had it.
Matthew Clark: Okay.
Matthew Clark: Sure Matthew the spot rate at the end of March at March 31 was one 4%.
Matthew Clark: And the margin for the month of March was 3.0% to 5%.
Matthew Clark: Okay.
Matthew Clark: Got it.
Matthew Clark: And then the uptick in non accruals this quarter. It looked like it was a C&I credit can you just provide some color there.
Hey, Matthew this is Tom it was centered in one relationship.
Matthew Clark: The issue with the credit was not market or economic base, there was a management issue.
Matthew Clark: And it's.
Matthew Clark: It's well secured including real estate, there's no loss expected.
We should be out of the deal by the end of the year.
Speaker Change: Okay. Thank you and then.
Matthew Clark: Final one for me just around tariffs.
Speaker Change: Any thoughts on.
Speaker Change: Tariffs going up on Canadian lumber and what that might do for you.
Speaker Change: Construction.
Activity that you tend to help out with.
Speaker Change: On the resi and commercial side.
Speaker Change: Yeah.
Speaker Change: Let me I'll start on that and we'll have Tom give you some color.
Speaker Change: <unk>.
Speaker Change: The best way to get to the to the what we see happening is talking to our customers and we've been doing a lot of that in.
Speaker Change: It's been very interesting that the impact.
Speaker Change: The impact seems to be a much more manageable with our customers. We're just not hearing a lot of.
Speaker Change: Distress over pricing moving way outside of what they can handle and so.
Speaker Change: So far all of the discussions.
Speaker Change: Plans are still in place people are moving forward. They recognize that costs are going to go up in some area.
Speaker Change: But.
Speaker Change: When we talk to the most.
Speaker Change: Specifically answer your question kind of wood.
Speaker Change: Dependent industries homebuilding construction.
Speaker Change: They feel like they can manage those costs within reason on the projects and so.
Speaker Change: If you have to really report that those have hit them, they may or anticipate them theyre very.
Speaker Change: Good thing about our customer base is.
Speaker Change: We tend to bank smaller operators, they're very nimble very reactive and they're looking for alternatives.
Speaker Change: As well so.
Speaker Change: It's obviously on everybody's mind, but they're just not seeing material impact that would disrupt plans at this point Tom do you want to add anything to that Matt. The only thing I'd add is when we're seeing budgets come in on construction requests were seeing more conservatism in certain line items, which certainly would be expected in <unk>.
Speaker Change: We're also adding some conservatism in our contingency line items on construction as well to be able to.
Speaker Change: Offset any.
Speaker Change: Any fluctuation in prices and ultimately what that's led to is just additional cash equity into the deals upfront.
Speaker Change: Okay, great. Thanks again.
Speaker Change: We welcome you and one moment as we move on to the next question.
Speaker Change: Our next question comes from the line of Andrew <unk> with Stephens. Your line is open. Please go ahead.
Andrew: Hey, good morning.
Speaker Change: Yeah.
Speaker Change: I apologize I missed the number.
Speaker Change: In the remarks earlier, but Byron.
Speaker Change: Can you remind us that the FHA will be.
Speaker Change: Borrowings mature throughout the remainder of this year and then just balance sheet size question I understand you got a lot of kind of securities cash flow picking up in 'twenty five but also into 2026, I guess should the expectation.
Speaker Change: Barring a material step up in loan growth be that.
Speaker Change: Cash flow from that goes to pay down the borrowing position or just how should we think about the size of the balance sheet.
Speaker Change: Okay.
Speaker Change: Sure I'll also circle back to the FHA advances so we have quarterly maturities.
Speaker Change: The rest of the year, we have $300 million maturing in.
Speaker Change: Q2, we have $360 million maturing in Q3 and $420 million maturing in Q4.
Speaker Change: In terms of our expectations around pain.
Speaker Change: Paydowns, we do as I mentioned expect to see some some accelerating.
Speaker Change: Investment Securities cash flow, we do anticipate for the most part we will be using that cash flow to pay down or pay off those FHL be advances we'll remain flexible.
Speaker Change: With.
Speaker Change: With with what the market opportunities reflect at the time, but that I would say is our base case expectation overall in terms of how I think about the balance sheet.
Speaker Change: Let's let's separate bank of Idaho for a second and just talk about the organic.
Speaker Change: Balance sheet going forward.
Speaker Change: Or it is stable and flat through the rest of the year, we might see a little bit of a.
Speaker Change: A downtick in Q4 with some accelerated.
Speaker Change: Investment Securities maturities.
Speaker Change: But for the most part I would think about the balance sheet.
Speaker Change: Stable organic growth coming from bank of Idaho acquisition.
Speaker Change: Understood Okay.
Speaker Change: And on the on the bank of Idaho deal.
Speaker Change: I guess, Greg Great work by you guys on accelerating some of the closing date. There do you have an integration data conversion date set for that yet.
Speaker Change: Yes at this point, we're we're targeting early September.
Speaker Change: To do the conversion so.
Speaker Change: <unk>.
Speaker Change: That's all on track and starting to move towards that once we get this closing at the end of the month.
Speaker Change: Understood.
Speaker Change: Just back to one of the questions around.
Speaker Change: Mark kind of southwest markets.
Speaker Change: As you guys think about M&A and what would complement your franchise going forward and maybe specifically if you are looking to extend into more kind of contiguous markets do you feel that do you feel like that alters the size of the acquisition you would look to do just achieve.
Speaker Change: Critical mass in a newer market or is it should we should we think that it's really no change to that typical kind of size of acquisition you would like to do.
Speaker Change: Yes.
Speaker Change: Our targeting.
Speaker Change: <unk> House.
Speaker Change: We always talk about 1 billion to three to five somewhere in that range really hasnt changed I think if we enter a new market our preference would be to lean into a little bit larger.
Really.
Andrew: Andrew the market.
Speaker Change: With some scale.
Speaker Change: But that's that's.
Speaker Change: Dependent on the quality of the bank and the opportunity that we see there so I wouldn't.
Speaker Change: I don't really see it changing our strategy other than to say, we had our preference we'd probably leans a little higher end of that range.
Speaker Change: But all that being said, it's still driven by finding a great bank and a great market with great people.
Speaker Change: Understood. Okay. Thank you very much for the questions.
Speaker Change: Youre welcome.
Speaker Change: Thank you and one moment for our next question.
Speaker Change: Next question is going to come from the line of Kelly Motta with <unk>.
Speaker Change: <unk> W. Your line is open. Please go ahead.
Kelly Motta: Hey, good morning, Thanks for the question.
Speaker Change: Morning.
Speaker Change: I would love to circle back to the margin I believe in the past you've talked about.
Speaker Change: An exit for key 25 margin.
Speaker Change: I appreciate the dynamics Byron, but wondering that.
Speaker Change: To get to that 323, 25 range and pilot pretty meaningful step up from that 305 in March. So I'm wondering if you have any.
Speaker Change: Any thoughts on where margin could exit for this year.
Speaker Change: Four basis points Lithia from bank of Idaho.
Speaker Change: Sure Kelly I do see fourth quarter margin.
Speaker Change: Exiting somewhere in the neighborhood of $3 40.
If we can include bank of Idaho, and that it might move it closer to $3 45, but $3 40, I think is a good exit number for us.
Coming out of the year.
Speaker Change: Got it that's helpful.
Then a question on loan growth.
Speaker Change: Appreciate the color that be.
Speaker Change: Uncertainty weighed on growth this quarter, but it sounds like the pipeline is.
Speaker Change: Solid ahead, and you expect some some nice growth here wondering.
Speaker Change: The factors puts and takes.
Speaker Change: That you guys are seeing in the customer conversations you're having with your customers that gives you some optimism that.
Speaker Change: Net group growth Ken Raskin here. Thank you.
Speaker Change: Sure Kelly this is Tom.
Speaker Change: Generally first quarter is seasonally slower for overall production, but we actually saw comparatively strong topline production, especially in the last half of the quarter in March in particular.
Speaker Change: Larger component of the first quarter production was in the construction segment.
Speaker Change: We really haven't seen over the past several quarters and of course, those loans do not fully advanced at origination.
Speaker Change: We continued to see elevated payoffs in the first quarter as well with multiple commercial real estate and multifamily projects as Steve achieving stabilization and either refinancing into the secondary market as originally planned or opportunistically selling.
Speaker Change: I think the change that we've seen is those headwinds we saw in the first quarter appear to be abating somewhat in April and we're also coming into seasonally stronger months, which should provide some tailwind we've seen construction draws materially increase and also agriculture production is entering a more seasonally positive period. So.
Speaker Change: And then the comment on the pipeline it does remain strong.
Speaker Change: Being early stage pipeline growth after some good pull through in February and March. So we're still confident in our low to mid single digit guide for the year.
Speaker Change: Great. Thank you for the color I will step back.
Speaker Change: Thank you one moment for our next question.
Speaker Change: The next question is going to come from the line of Tim Coffey with Janney. Your line is open. Please go ahead.
Speaker Change: Thank you and good morning, gentlemen, good morning.
Speaker Change: Tom if we can.
Speaker Change: Kind of circle back on the.
Speaker Change: Underwriting questions in a little while ago.
Speaker Change: Can you can describe how the process and the thought process changes and so on.
Speaker Change: Certain economic times like we're in as well as can you kind of talk about what message youre, sending to the lending team right now so that they are not bringing applications that might not fit reality.
Speaker Change: Yes.
Speaker Change: I wouldn't say, we've necessarily changed our underwriting we always underwrite with a through the cycle wins that really can.
Speaker Change: Best protect the bank and really any economic cycle I think if I was going to say one difference that we have changed is.
Speaker Change: Specially when we're working with borrowers were looking at projections.
Speaker Change: On the construction side when we're looking at construction budgets, let's just make sure there is some conservatism.
Speaker Change: Built in there too with Dan, maybe any uncertainty or any fluctuations that they may see but.
Speaker Change: There haven't been any material policy changes.
Speaker Change: To discourage underwriting.
Speaker Change: Okay, Great and then Randy less 24, 48 hours, we're starting to see some M&A deals and the other executives I've spoken to.
Speaker Change: Are somewhat optimistic given that we're starting to see some prints do you share that optimism as well.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: I think we'll see more I'm not sure we'll see the level of activity that people were looking for at the beginning of the year.
Speaker Change: So I do think it is picking up.
Speaker Change: I think for us conversations continue.
Speaker Change: And I think as far as we're concerned we have demonstrated that really regardless of the general environment, We can get a deal done with the right partner.
Speaker Change: So yes, I think it's it's picking up a little bit.
But I still think it's a bit muted due to stock prices and kind of general uncertainty.
Speaker Change: Alright, great. Those are my questions. Thank you very much.
Speaker Change: Youre welcome. Thank you and again, if you would like to ask a question at this time. Please press star one on your telephone.
Speaker Change: Our next question is going to come from the line of David Feaster with Raymond James Your line is open. Please go ahead.
David Feaster: Hey, good morning, everybody.
Speaker Change: Good morning.
David Feaster: I just wanted to follow up maybe along the same lines.
David Feaster: Broader uncertainty the trade wars does immigration reform, you'll be touched on lumber and construction.
David Feaster: I'm curious are there any other segments that you're watching closely obviously adds a smaller segment for you all but something that folks are watching I'm just kind of curious.
David Feaster: Is there anything that.
David Feaster: You're watching more closely or.
David Feaster: Cautious on.
Tom Dolan: Yes, David This is Tom we our portfolio is now comprised of multi multinational companies.
Tom Dolan: So really what we're keeping a close eye on is what happens to domestic prices and how thats going to affect our borrowers and even in the AG segment. When we talk to our growers, there's a very limited export.
Tom Dolan: Components of their revenue stream so.
Tom Dolan: I think ultimately it's too early to really assess what the ultimate impact, especially to domestic prices is going to be.
Tom Dolan: When we talk to our customers and our consumer and our commercial lenders certainly theres overall uncertainty of the economic impact of the trade policy that optimism is still there and a consistent theme in our discussions is that the uncertainty they're experiencing its not stopping borrowers from moving forward.
Tom Dolan: May reassess they may inject additional cash equity they may add conservatism to projections, but ultimately theyre moving forward.
Tom Dolan: One of the things we've been talking with our bank divisions. The laws that they are seeing a lot of evidence of projects or any type of significant capital expansion just completely being canceled and we're just not seeing that it's very isolated it's not widespread and our borrowers are still seeing demand and still thing.
Tom Dolan: Good revenue trends.
Tom Dolan: Okay.
Tom Dolan: And then maybe just last one from me maybe touch on the competitive landscape I appreciate the commentary about the loan growth outlook.
Speaker Change: Pipelines I am curious what are you seeing on the competition side kind of how new loan yields have been trending you've always done a great job getting paid for the risk that youre, taking and maintaining spreads, but just kind of curious what youre seeing on that front.
Tom Dolan: Yes, we are still maintaining very good spreads on production.
Tom Dolan: You know one of the benefits of our footprint is when we tend to have a leading market share in a given market. We can generally set the pricing where we run into some pretty significant competition is usually in the larger markets, where there's more competition.
Tom Dolan: We've definitely been seeing some competition on pricing.
Tom Dolan: And as you would expect especially for stronger deals.
Tom Dolan: And I think that mix of production between more of the larger markets and the smaller rural markets, we're still able to compete everywhere and maintain our spreads from an overall perspective.
Tom Dolan: We still haven't seen any type of irrational structure, our underwriting we haven't seen that yet which is encouraging.
Tom Dolan: Somewhere we would really be willing to compete.
Tom Dolan: So, but certainly it's something we keep in Ireland.
Tom Dolan: Where are you seeing new spreads today, and maybe how our newer rates origination yields trending.
Tom Dolan: So we're still getting about 300 basis points spreads over the five year part of the curve.
Tom Dolan: So for the first quarter were about 740, that's a little north of 300, and as we've seen that middle part of the curve kind of fluctuating we've seen our production yields fluctuate with it.
Tom Dolan: That's great that's great. Thanks.
Tom Dolan: Thanks, everybody.
Tom Dolan: Welcome.
Tom Dolan: Thank you and I'm showing no further questions at this time and I would like to hand, the conference back over to Randy Chesler for closing remarks.
Randy Chesler: Alright, Thank you Michele I want to thank everyone for dialing in to our call today I want to wish everyone, a great Friday and a great weekend. Thank you.
Speaker Change: This concludes today's conference call. Thank you for participating and you may now disconnect everyone have a great day.
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