Executive Summary

Q1 2025 EPS was $0.48, up 66% YoY and down 11% QoQ; EPS beat S&P consensus of $0.464 by ~$0.02 as NIM expanded for a fifth straight quarter to 3.04% on higher loan yields and lower funding costs . EPS estimate: $0.464*; actual: $0.4843*.
Revenue definition diverges: company “Total income” was $222.6M (+13.3% YoY; flat QoQ) while S&P “Revenue” actual was $212.7M vs $227.1M consensus, implying a revenue miss on the S&P basis despite solid company-reported income . Revenue estimates/actuals: $227.14M* est vs $212.73M* actual.
Credit remained benign overall; NPAs rose to 0.14% of assets (from 0.10% in Q4) due to one C&I relationship (management issue, well-secured, no loss expected) .
2025 setup: management reaffirmed full‑year NIM guide of ~3.20–3.25% and targets a ~3.40% exit (potentially ~3.45% including Bank of Idaho), with margin lift driven by loan repricing, securities runoff, and FHLB paydowns—not Fed dependent . Operating expense guide maintained at $151–$154M per quarter ex‑M&A, with BOID adding ~$6M in Q2 and $9–$10M in Q3–Q4 .
Key catalysts: continued margin expansion, expense discipline, and BOID integration (regulatory approvals obtained Apr 9; closed May 1) .

What Went Well and What Went Wrong

What Went Well

Margin expansion continued for the fifth consecutive quarter; NIM (TE) rose 7 bps QoQ to 3.04% on higher loan yields and lower funding costs; core deposit cost fell to 1.25% and total cost of funding to 1.68% .
Management expects margin trajectory to improve through 2025 on loan repricing, accelerated securities runoff, and FHLB paydowns; “our margin trajectory is not Fed dependent” (Byron Pollan) .
Non‑interest income grew 9% YoY to $32.6M; gain on mortgage sales improved; other income benefited from bank‑owned life insurance and equity gains .

What Went Wrong

On S&P’s revenue basis, the company missed consensus as S&P “Revenue” actual was below estimates, even as company “Total income” was stable QoQ; expense rose QoQ due to higher compensation . Revenue est/actual: $227.14M* vs $212.73M*; Total income: $222.6M .
NPAs increased to 0.14% (from 0.10% QoQ) primarily due to a single C&I relationship; early‑stage delinquencies rose QoQ to 0.27% of loans (still below prior‑year) .
Net interest income dipped 1% QoQ on fewer days and lower average interest‑bearing cash balances; non‑interest expense increased 7% QoQ (performance‑related comp; integration costs) .

Financial Results

Earnings and Revenue vs Prior Periods and Estimates

Metric	Q1 2024	Q4 2024	Q1 2025
Diluted EPS ($)	$0.29	$0.54	$0.48
EPS Consensus Mean ($)	$0.3357*	$0.5183*	$0.4640*
EPS Surprise ($)	+$0.00*	+$0.03*	+$0.02*
S&P Revenue (USD)	$185.95M*	$214.35M*	$212.73M*
S&P Revenue Consensus (USD)	$202.67M*	$224.99M*	$227.14M*
Company “Total income” (USD)	$196.47M	$222.99M	$222.62M
Net Interest Income (USD)	$166.48M	$191.44M	$189.98M
Non‑interest Income (USD)	$29.99M	$31.55M	$32.64M
Non‑interest Expense (USD)	$151.84M	$140.97M	$151.32M
Provision for Credit Losses (USD)	$8.25M	$8.53M	$7.81M
Net Interest Margin % (TE)	2.59%	2.97%	3.04%

Note: Company “Total income” = Net interest income + Non‑interest income (company definition); S&P “Revenue” is S&P’s banking revenue construct and differs from company presentation.

Key KPIs

KPI	Q1 2024	Q4 2024	Q1 2025
Loan Yield	5.46%	5.72%	5.77%
Total Earning Asset Yield	4.31%	4.57%	4.61%
Core Deposit Cost	1.34%	1.29%	1.25%
Total Cost of Funding	1.84%	1.71%	1.68%
Total Deposits	$20.428B	$20.547B	$20.634B
Non‑interest Bearing % of Deposits	30%	30%	30%
FHLB Advances	$2.140B	$1.800B	$1.520B
ACL % of Loans	1.19%	1.19%	1.22%
NPAs / Subsidiary Assets	0.09%	0.10%	0.14%
Net Charge‑offs / Loans	0.02%	0.08%	0.01%

Loan Mix (Period‑End, Loans Receivable)

Category (USD)	Mar 31, 2024	Dec 31, 2024	Mar 31, 2025
Commercial Real Estate (Total)	$6.978B	$7.251B	$7.237B
Commercial & Industrial	$1.371B	$1.396B	$1.392B
1–4 Family (Total)	$2.328B	$2.558B	$2.585B
Multifamily Residential	$0.881B	$0.895B	$0.874B
Consumer (Total)	$1.171B	$1.215B	$1.177B
States & Political Subdivisions	$0.848B	$0.984B	$1.001B
Total Loans (incl. HFS)	$16.760B	$17.295B	$17.259B
Total Loans Receivable	$16.733B	$17.262B	$17.219B

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Margin (full‑year)	FY 2025	~3.20%–3.25% (incl. BOID)	Reaffirmed ~3.20%–3.25%	Maintained
Exit NIM (run‑rate)	Q4 2025 exit	~3.35%–3.45% implied	~3.40% (≈3.45% incl. BOID)	Maintained/clarified
Core Non‑interest Expense (ex‑M&A)	FY 2025	$151M–$154M per quarter; skew to $154M in Q1	Maintained; Q1 core ~$152M (after ~$1.2M gain and ~$0.6M merger costs)	Maintained
Non‑interest Expense (BOID impact)	Q2 2025	N/A	+~$6M add‑on in Q2	New detail
Non‑interest Expense (BOID impact)	Q3–Q4 2025	N/A	+~$9–$10M per quarter in Q3–Q4	New detail
Loan Growth (organic)	FY 2025	Low‑to‑mid single digits	Reaffirmed low‑to‑mid single digits	Maintained
Borrowing Reduction Plan	FY 2025	N/A	FHLB maturities: $300M (Q2), $360M (Q3), $420M (Q4); use securities cash flow to pay down	New detail
Dividend	Quarterly	$0.33/share	$0.33/share declared Mar 26; paid Apr 17	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q1 2025)	Trend
NIM trajectory	Targeting 3% by YE’24; 2025 full‑year NIM ~3.20–3.25%; December spot margin ~2.99%	NIM 3.04%; reaffirmed ~3.20–3.25% FY; exit ~3.40% (≈3.45% incl. BOID)	Improving
Funding costs/deposit pricing	Core deposit cost 1.37% (Q3); 1.29% (Q4); customer acceptance of lower rates; CD renewals lower	Core deposit cost 1.25%; spot deposit rate 1.24% at Mar 31	Improving
Loan growth pipeline	Stable pipelines; low‑to‑mid single‑digit organic growth outlook	Q1 shrinkage from elevated payoffs; pipeline firming; reaffirmed low‑to‑mid single‑digit growth	Stabilizing
Credit quality	Benign; slight normalization; watching weaker operators; QoQ provision drivers explained	NPAs up to 0.14% from one C&I; no loss expected; exit by year‑end	Normalizing but solid
Balance sheet deleveraging	Use securities cash flow to reduce FHLB; stable organic balance sheet; Rocky added scale	Plan to use accelerated securities runoff to pay down FHLB maturities through 2025	Deleveraging
M&A and integration	Rocky Mountain branches closed; BOID announced; disciplined M&A focus	BOID regulatory approvals (Apr 9); conversion targeted early September; close Apr 30	Executing
Macro/tariffs	Deposit headwinds easing; cautious on pass‑through of rate cuts	Canadian lumber tariffs manageable; customers adapting	Manageable
Operating expenses	Focused discipline; 3% normalized growth target; lowered Q4 guide	2025 core guide reiterated; BOID incremental detail	Controlled

Management Commentary

“All of the structural drivers … will drive margin expansion regardless of Fed activity.” — Byron Pollan, Treasurer .
“Bank of Idaho … could see … contributing 4 basis points of margin lift to the entire organization.” — Byron Pollan .
“Core noninterest expense guide for 2025 is $151–$154 million per quarter… add ~$6 million in Q2 and $9–$10 million in Q3 and Q4 for Bank of Idaho.” — Ron Copher, CFO .
“The uptick in nonaccruals … was centered in one [C&I] relationship… well secured… no loss expected and we should be out of the deal by the end of the year.” — Tom Dolan, Chief Credit Administrator .

Q&A Highlights

Margin outlook and drivers: management reiterated structural, non‑Fed‑dependent tailwinds (loan repricing, securities runoff, FHLB paydowns), with BOID adding ~4 bps to NIM; exit ~3.40–3.45% discussed .
Expense trajectory: 2025 core guide maintained; BOID adds ~$6M in Q2 and ~$9–$10M in Q3–Q4; Q1 core came in ~$2M below high end due to slower hiring and lower consulting spend .
Credit update: single C&I drove nonaccrual increase; well secured; no losses expected; normalization otherwise benign .
Balance sheet and funding: securities cash flows to pay down FHLB ($300M Q2, $360M Q3, $420M Q4); aim for stable organic balance sheet ex‑M&A .
Macro and tariffs: potential Canadian lumber tariff impact viewed as manageable by customer base; contingency in construction budgets noted .

Estimates Context

EPS: Q1 2025 EPS was $0.48 vs S&P consensus $0.464 (beat ~$0.02); Q4 2024 $0.55 vs $0.518 (beat); Q1 2024 $0.34 vs $0.336 (in line) (EPS actuals from S&P data closely align to company‑reported) . EPS est/actual: 0.464*/0.4843* (Q1’25); 0.5183*/0.55* (Q4’24); 0.3357*/0.34*.
Revenue: On S&P’s basis, Q1 2025 revenue was $212.7M vs $227.1M consensus (miss), while company‑reported “Total income” was $222.6M; S&P’s bank revenue construct can differ from company “Total income” . Revenue est/actual: 227.14M*/212.73M* (Q1’25); 224.99M*/214.35M* (Q4’24); 202.67M*/185.95M* (Q1’24).
Implications: Given reaffirmed margin guide, lower funding costs, and BOID contribution, forward NIM/Net interest income estimates may drift higher; short‑term S&P revenue variance reflects taxonomy differences and modest QoQ dip in net interest income (days effect) .

Values with * retrieved from S&P Global.

Key Takeaways for Investors

Margin expansion continues with structural tailwinds; management reaffirmed ~3.20–3.25% FY NIM and targets ~3.40% exit (≈3.45% incl. BOID), independent of Fed policy .
Funding costs are trending lower (core 1.25%; spot deposit 1.24% at 3/31); FHLB paydowns scheduled across 2025 should further support NIM .
Credit remains solid despite higher NPAs, attributable to a single well‑secured C&I credit; ACL rose to 1.22% of loans; net charge‑offs remained very low .
Expense discipline intact (core guide maintained); near‑term expense uptick from BOID is quantified, improving visibility for modeling .
Loan growth outlook (low‑to‑mid single digits) remains intact; Q1 softness driven by elevated payoffs should abate as construction draws pick up seasonally .
S&P revenue miss vs consensus should be viewed in context of definitional differences and stable company “Total income”; EPS beat underscores earnings durability .
Catalysts ahead: integration of BOID (closed May 1), securities runoff and FHLB paydowns, and continued deposit cost relief—each supportive of further NIM/earnings progression .

All company-reported figures and quotes are sourced to GBCI’s Q1 2025 8‑K/press release and earnings call transcripts.

GLACIER BANCORP, INC. (GBCI)·Q1 2025 Earnings Summary