Glacier Bancorp, Inc. (NYSE:GBCI) Q1 2023 Earnings Call Transcript

So in terms of, you mentioned kind of the long-term impact, I think that’s the unknown with the office book, what impact is some of this larger office theory, locating these downtown business districts. If that goes sideways, what’s the long term cascading effect on, on valuations going forward? That’ll be the – that’s the question yet to be answered. But what I will say is, and I think I’ve mentioned it before, about four years ago we implemented an additional underwriting requirement in addition to, lesser longer value or cost and debt service coverage ratio.We also underwrite to debt yield, meaning that and for office, and it varies by geography in asset class, but typically for office, that minimum threshold 10%. And so as cap rates came down through this cycle, what that dictated was more cash equity coming into purchases.

So to your point, I think it’s fairly well insulated to market disruption. Average LTV in that book is below 60%.And we keep a pretty close eye on it. We keep monitoring it. Right now, it’s outperforming the rest of theory book. And as I mentioned, some of this disruptions in the city center offices thus far had a positive effect on our type of office that we have. So it’s been a unique dynamic over the past few quarters.Matthew Clark Okay. Great. Thank you.Operator Thank you. And our next question is a follow-up from Kelly Motta from KBW. Your line is open.Kelly Motta Hi, I appreciate you letting me back in the queue, but my questions are asked and answered at this point.Operator Thank you. And I’m showing no other questions in the queue. I’d like to turn the call back to management for any closing remarks.Randy Chesler All right, Catherine, thank you very much.

We want to thank everybody again for dialing into our call today. We hope everyone has a great Friday and a great weekend. Thank you.Operator This concludes today’s conference call. Thank you for participating. You may now disconnect.