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GLACIER BANCORP, INC. (GBCI)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 delivered accelerating profitability: net income rose 29% QoQ and 33% YoY to $67.9M as NIM expanded 18 bps sequentially to 3.39% on higher loan yields and lower funding costs; GAAP diluted EPS was $0.57 (vs $0.45 in Q2 and Q3’24) .
  • Versus S&P Global consensus, EPS modestly beat while “revenue” (S&P-defined) missed: EPS $0.62* vs $0.62* est (slight beat), revenue $251.5M* vs $261.0M* est (miss); total company “total income” was $260.7M, up sharply QoQ and YoY .
  • Balance sheet trends constructive: loans +$258M QoQ to $18.79B; deposits +$242M QoQ to $21.87B; FHLB advances cut by $360M QoQ to $895M, supporting lower funding costs .
  • Management guided to further NIM expansion in Q4 (+18–20 bps) and raised expense color with Q4 core non-interest expense of $185–$189M including a full quarter of Guaranty; Guaranty conversion planned for Q1’26 with 20% cost saves phased 50% in 2026 and 50% in 2027 .
  • Catalysts: continued quarterly NIM gains and expense synergy realization post-Guaranty conversion; watch credit normalization (NPAs 0.19% of assets) and ag-sector pressures, though overall credit quality remains strong .

What Went Well and What Went Wrong

  • What Went Well

    • Sustained margin expansion on both sides of the spread: NIM rose to 3.39% (+18 bps QoQ; +56 bps YoY) as loan yield increased to 5.97% and total cost of funding fell to 1.58% .
    • Funding mix improved: non-interest-bearing deposits grew to $6.67B (31% of deposits) and FHLB advances fell to $895M (−29% QoQ), reducing wholesale reliance and cost .
    • Management conviction and execution on M&A: BOID core conversion completed in Q3; Guaranty closed Oct 1 and is “the best cultural fit in 10 years,” with a Q1’26 conversion target to unlock cost saves (“our focus is on delivering a flawless conversion”) .

  • What Went Wrong

    • S&P revenue miss: S&P-defined “revenue” of $251.5M* came in below the $261.0M* consensus despite strong net interest income; definition differences matter as company “total income” was $260.7M .
    • Expense pressure from M&A: non-interest expense rose to $167.8M (+8% QoQ), including $7.0M of acquisition-related costs; Q4 core opex will step up further with a full quarter of Guaranty .
    • Credit normalization: NPAs increased to 0.19% of assets (from 0.17% in Q2 and 0.10% in Q3’24); management notes ag-sector pricing remains a watch area, though losses and delinquencies remain low .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Diluted EPS ($)$0.45 $0.48 $0.45 $0.57
Net Income ($M)$51.1 $54.6 $52.8 $67.9
Net Interest Income ($M)$180.2 $190.0 $207.6 $225.4
Non-Interest Income ($M)$34.7 $32.6 $32.9 $35.4
Total Income ($M)$214.9 $222.6 $240.6 $260.7
Provision for Credit Losses ($M)$8.0 $7.8 $20.3 $7.7
Loans (end, $B)$17.18 $17.22 $18.53 $18.79
Deposits (end, $B)$20.71 $20.63 $21.63 $21.87

Margins and Ratios

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Net Interest Margin (tax-eq, %)2.83 3.04 3.21 3.39
Loan Yield (%)5.69 5.77 5.86 5.97
Earning Asset Yield (%)4.52 4.61 4.73 4.86
Total Cost of Funding (%)1.79 1.68 1.63 1.58
Efficiency Ratio (%)64.92 65.49 62.08 62.05
ROA (annualized, %)0.73 0.80 0.74 0.93
ROE (annualized, %)6.34 6.77 6.13 7.52

KPIs and Credit

KPIQ3 2024Q1 2025Q2 2025Q3 2025
Non-interest-bearing Deposits ($B)$6.41 $6.10 $6.59 $6.67
FHLB Advances ($B)$1.80 $1.52 $1.26 $0.90
Tangible Book Value/Share ($)$18.86 $19.28 $19.79 $20.46
NPAs / Subsidiary Assets (%)0.10 0.14 0.17 0.19
ACL / Loans (%)1.19 1.22 1.22 1.22
Net Charge-offs / Loans (%)0.05 (YTD) 0.01 (Q) 0.02 (YTD) 0.03 (YTD)

S&P Global Consensus vs Actuals

MetricQ1 2025Q2 2025Q3 2025
EPS (Primary) – Estimate$0.464*$0.485*$0.615*
EPS (Primary) – Actual$0.484*$0.589*$0.619*
Revenue – Estimate ($M)$227.1*$242.7*$261.0*
Revenue – Actual ($M)$212.7*$221.6*$251.5*
EPS – # of Estimates5*6*6*
Revenue – # of Estimates5*4*4*

Values retrieved from S&P Global.*

Segment/Portfolio Snapshot (end of period)

Loan Type ($B)Jun 30, 2025Sep 30, 2025QoQ Δ
Commercial Real Estate (CRE)7.814 7.904 +0.091
Other Commercial3.304 3.451 +0.147
Residential RE1.932 1.926 −0.005
Home Equity0.975 0.980 +0.005
Consumer0.387 0.387 ~0.000
Total Loans18.533 18.791 +0.258

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest Margin (tax-eq)Q4 2025Prior Q2 call context referenced as +15–17 bps plus 5–7 bps from Guaranty (analyst recap) +18–20 bps vs Q3; continued growth through 2026 but moderating pace Raised vs prior context
Core Non-Interest ExpenseQ3 2025 run-rate$159–$161M (delivered ~$160M core) Q4 2025 core: $185–$189M incl. full-quarter Guaranty and ~$3M core deposit intangible amortization Higher near term
Tax RateQ4 2025N/AUse Q3 effective rate (~20.4%) for Q4; some merger costs non-deductible New color
Deposit Beta (down-cycle)ForwardMid-teens prior15–20% combined (Guaranty slightly higher beta); with lag to cuts Slightly higher
Guaranty Cost Saves2026–2027N/A~20% NIE reduction; ~50% realized in 2026, ~50% in 2027 (post Q1’26 conversion) New
Guaranty ConversionQ1 2026N/AConversion targeted Q1 2026 New
Quarterly DividendOngoing$0.33/share declared Sep 22 for Oct 16 payment $0.33/share declared Nov 12 for Dec 18 payment; 163 consecutive dividends Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
Net Interest Margin trajectoryQ1: NIM +7 bps to 3.04% on higher loan yields, lower deposit costs . Q2: NIM 3.21% (+17 bps) on loan yield lift and FHLB reduction .NIM 3.39% (+18 bps QoQ); guide +18–20 bps in Q4; continued 2026 growth but moderating pace .Improving, likely moderating in 2026
Funding/funding costQ1: FHLB −$280M QoQ . Q2: FHLB −$265M QoQ .FHLB −$360M QoQ to $895M; cost of funding 1.58% (−5 bps QoQ) .Lower-cost funding mix
Deposits/NIBQ1: total deposits +$87M; NIB 30% . Q2: deposits +$994M; NIB $6.59B (30%) .Deposits +$242M; NIB $6.67B (31%) .Slightly improving mix
Credit qualityQ1 NPAs 0.14% (normalizing) . Q2 NPAs 0.17% .NPAs 0.19%; ag sector monitored; net charge-offs low (3 bps) .Gradual normalization from low base
M&A/IntegrationBOID closed Apr 30 .Guaranty closed Oct 1; conversion Q1’26; strong cultural fit .Expansion with synergy runway
ExpensesQ1 opex up on comp; low acq. costs . Q2 opex +3% QoQ; acq. costs $3.2M .Q3 opex +8% QoQ; acq. costs $7.0M; Q4 core $185–$189M with full Guaranty .Near-term step-up, post-conversion saves

Management Commentary

  • “We delivered another excellent quarter, continuing our momentum with strong margin expansion, higher loan yields, lower deposit costs, and solid, high-quality loan growth… We successfully closed the acquisition of Guaranty Bank and Trust, adding $3.1 billion in assets” (Randy Chesler, CEO) .
  • “The continued remix of lower yield securities cash flow into higher yield loans combined with the continued reduction in the cost of deposits and wholesale funding were a primary driver of the 18 basis points increase in the net interest margin for the current quarter” (Ron Copher, CFO) .
  • “Guaranty may be the best cultural fit of any acquisition we've done in the last 10 years… our focus right now is on getting Guaranty converted in Q1 and making sure that goes extremely well” (CEO) .
  • “It wouldn’t surprise me towards the end of next year if we see a full handle on our net interest margin” (CFO, on potential to reach ~4%) .

Q&A Highlights

  • Margin outlook: Treasury expects Q4 NIM to expand a further 18–20 bps (includes Guaranty), with continued gains through 2026 but at a moderating pace as FHLB paydowns largely finish by Q1’26 and the 5-year point of the curve softens .
  • Deposit beta: Spot deposit cost at Sept 30 was 1.22%; forward down-rate beta expected 15–20% for the combined entity, with lagged pass-through to deposit costs .
  • Expenses: Q3 reported NIE $167.8M included $7.0M merger costs and $0.8M write-down; Q4 core NIE guided to $185–$189M with a full quarter of Guaranty and ~$3M core deposit intangible amortization .
  • Tax rate: Use the Q3 effective rate (~20.4%) again for Q4; elevation partly reflects non-deductible merger costs .
  • Credit: Overall benign; some pressure in ag due to low grain/hay prices, but exposures are secured with experienced lenders; no outsized risks beyond normalization trends .

Estimates Context

  • S&P Global EPS slightly beat in Q3: $0.619* vs $0.615* est (6 estimates). Company-reported GAAP diluted EPS was $0.57 (includes ~$7.0M acquisition-related expense), which can explain differences versus S&P “Primary EPS” basis .
  • S&P Global revenue missed: $251.5M* vs $261.0M* est (4 estimates). Note that banks’ “revenue” definitions vary; company “total income” was $260.7M (NII + non-interest income), up 8% QoQ .
  • Estimate revisions likely bias: upward on NIM and NII given Q4 NIM guide and Guaranty full-quarter inclusion; expenses also step up near-term, moderating post-conversion in 2026 .
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Margin momentum intact: seven consecutive quarters of NIM expansion, with Q4 guided to another +18–20 bps; primary drivers are higher loan yields and structurally lower funding costs from reduced FHLB borrowings and better deposit mix .
  • Near-term expense step-up, then synergy cadence: Q4 core NIE rises with a full-quarter Guaranty, followed by 20% cost saves phased 50% in 2026 and 50% in 2027 post Q1’26 conversion—key to 2026–27 EPS trajectory .
  • Credit still benign amid normalization: NPAs at 0.19% of assets and net charge-offs at de minimis levels; ag-sector watched but manageable per underwriting and collateralization .
  • Balance sheet positives: QoQ growth in loans and deposits alongside NIB mix improvement (31%) and a sizable reduction in FHLB advances to $895M lower funding cost sensitivity .
  • Estimate framework: Expect EPS tailwind from NIM and Guaranty accretion offset by near-term opex; S&P EPS beat vs revenue miss underscores importance of bank-specific revenue definitions; focus on NII and NIM as primary stock drivers .
  • M&A as strategic lever: Completed BOID and Guaranty in 2025; management cites strong cultural fit and optionality across Mountain West and Texas, suggesting medium-term inorganic upside post-conversion .
  • Dividend consistency: $0.33/share maintained (163rd consecutive), underpinned by improving tangible equity and TBV per share .

Appendix: Additional Document References

  • Q3’25 8-K (Press Release and full exhibits, Oct 16, 2025) .
  • Q3’25 Earnings Call Transcript (Oct 17, 2025) .
  • Q2’25 8-K (Press Release, July 24, 2025) .
  • Q1’25 8-K (Press Release, Apr 24, 2025) .
  • Guaranty Acquisition Closing Press Release (Oct 1, 2025) .
  • Dividend Declaration Press Release (Nov 12, 2025) .