Glacier Bancorp Q4 Earnings Call Highlights
Glacier Bancorp NYSE: GBCI executives told investors that 2025 marked a “transformative year” for the company, driven by two acquisitions, record balance sheet growth, and expanding profitability metrics. Speaking on the company’s earnings call, President and CEO Randy Chesler highlighted the closing of Bank of Idaho in April and Guaranty Bank & Trust in October, calling 2025 the largest acquisition year in the company’s history with more than $4.7 billion acquired.
Chesler said the deals broadened Glacier’s footprint in fast-growing Idaho and expanded its Southwest region to include Texas. The company converted Bank of Idaho’s operating platform in September and plans to convert Guaranty Bank & Trust in February.
Financial performance and balance sheet growth
Glacier reported net income of $63.8 million for the quarter, which included $36 million of expenses related to the two 2025 acquisitions. Full-year 2025 net income was $239 million, up $48.9 million, or 26%, from the prior year, which management attributed to the acquisitions and efforts to increase net interest margin.
Diluted earnings per share were $0.49 for the quarter and $1.99 for the full year, representing an 18% increase year over year. Pre-tax, pre-provision net revenues totaled $362 million for 2025, up $107 million, or 42%, from the prior year.
Chesler also noted balance sheet expansion to record levels. Total assets exceeded $30 billion during the quarter and ended the year at $32 billion. Loans totaled $21 billion at year-end 2025, rising $2 billion, or 11%, from the prior quarter and $3.7 billion, or 21%, for the full year. Deposits reached $24.6 billion, increasing $2.7 billion, or 12%, sequentially and $4 billion, or 20%, over 2025.
Margin expansion and funding trends
The company emphasized progress in net interest margin, with the tax-equivalent net interest margin on earning assets reaching 3.58% for the quarter. That marked a 19 basis point increase from the prior quarter and a 61 basis point increase from the prior-year quarter. Net interest income was $266 million for the quarter, up $41 million, or 18%, sequentially, and $889 million for 2025, up $184 million, or 26%, year over year.
Management said higher loan yields and lower funding costs contributed to the improvement. The quarter’s loan yield was 6.09%, up 12 basis points from the prior quarter, while the total earning asset yield was 5.00%, up 14 basis points sequentially. Total cost of funding, including non-interest-bearing deposits, was 1.52%, down 6 basis points from the prior quarter and down 19 basis points from the prior-year quarter.
Treasurer Byron Pollan said the company expects to reach a 4% net interest margin “at some point later this year,” which he framed as likely in the second half of 2026. He said the company’s margin outlook is supported by “programmatic structural repricing drivers” and is “not in any way Fed-dependent.” On asset repricing, management said it expects “north of $2 billion” of assets to reprice in 2026, with a projected gain of 75 to 100 basis points on that balance, and Pollan indicated 2027 repricing could be comparable, “$2.5 billion somewhere in that neighborhood.”
Pollan also discussed securities portfolio cash flows, estimating about $425 million of cash flow from the securities book per quarter in 2026, with roll-off yields in the low-to-mid 1% range. He said Glacier expects to fully pay off remaining Federal Home Loan Bank advances later in the first quarter, with “mid-March” cited for payoff timing, funded by securities cash flow. After paying off the remaining $440 million, he said wholesale funding would largely be eliminated, with excess cash flows expected to be redeployed back into the bond book.
Expenses, integration, and efficiency ratio
Non-interest expense totaled $195 million for the quarter, up 16% from the prior quarter, which the company linked primarily to acquisition-related costs. Management said non-interest expense included $24 million from the Guaranty Bank & Trust acquisition and $3 million related to vacating leased branch locations. Non-interest income was $40 million, up 14% sequentially, with service charges and fees increasing 14% from the prior quarter and 20% from the prior-year quarter.
Chief Financial Officer Ron Copher provided additional detail on the quarter’s expense levels and the outlook for 2026. He said reported non-interest expense was $194.6 million, but after adjusting for one-time items (including $5.8 million of M&A-related costs, $3 million related to three leased branches, and an $827,000 reversal of FDIC assessment), core operating non-interest expense was $186.6 million, within the company’s prior guidance of $185 million to $189 million.
For 2026, Copher guided to core non-interest expense of $189 million to $193 million for the first quarter, describing the typical first-quarter seasonal step-up tied to merit increases and employment taxes. He said he expects Q2 through Q4 to range between $187 million and $192 million per quarter. On a full-year basis, Copher said that equates to core operating expense guidance of $750 million to $766 million.
Management also pointed to efficiency improvements, noting the efficiency ratio fell from 66.7% at the beginning of 2025 to 63% by year-end. Copher said the company believes it can reach its “traditional range” of 54% to 55% efficiency, and suggested the mid-50% level could be achieved in the second half of 2026.
Loan growth outlook, credit quality, and capital
On loan growth, Chief Credit Administrator Tom Dolan said fourth quarter and first quarter are seasonally slower due to agricultural and construction cycles, including paydowns following harvest and lower line utilization later in the year. Looking ahead, Dolan said management is targeting low- to mid-single-digit loan growth in 2026, noting the company has an early-year pipeline at record levels, though he cautioned it is too early to determine sustainability. He also said construction lending has become a growing portion of production and could provide “tailwinds” into the stronger seasonal quarters.
Management addressed loan pricing and competitive conditions. Dolan said the bank continued to see “good spreads,” citing roughly 300 basis points over the index used, with new production yields around 6.8% in the fourth quarter and improving into late December and January. Executives also referenced getting closer to a 3% margin on new loan pricing entering 2026, while noting uncertainty about whether the trend will persist.
On credit, Glacier said credit quality remains historically low. Non-performing assets were 22 basis points of total assets, with a slight increase from the prior quarter, which management attributed primarily to the Guaranty acquisition. Net charge-offs were 6 basis points of total loans for the year, compared with 8 basis points in the prior year. The allowance for credit losses stood at 1.22% of total loans. Management characterized a fourth-quarter rise in net charge-offs (noted by an analyst as 12 basis points) as normal year-end cleanup and said there was nothing outsized or unusual.
Chesler said tangible stockholders’ equity increased $609 million, or 29%, in 2025, while tangible book value per share rose 12% year over year to $21. He also noted the declaration of the company’s 163rd consecutive quarterly dividend of $0.33 per share in November.
On the Guaranty Bank & Trust integration, Chesler said Glacier’s operating model—keeping the bank’s name and people—helps minimize disruption in the Texas market. He said the credit culture fit has been strong, that Guaranty is already integrated into Glacier’s credit system, and that the franchise is positioned in East Texas and growth markets including Dallas-Fort Worth, College Station, Houston, and Austin. He also reiterated that cost saves associated with Guaranty are expected to “really take hold after the conversion” in February, and said the deal’s tangible book value payback period remains six months.
About Glacier Bancorp NYSE: GBCI
Glacier Bancorp, Inc is a bank holding company headquartered in Kalispell, Montana. Through its network of community banks, the company delivers commercial and retail banking services to individuals, small and medium-sized businesses, and agricultural clients. With a commitment to relationship-driven banking, Glacier Bancorp combines local market expertise with regional scale to offer customized financial solutions that address the unique needs of the communities it serves.
Established in 1955 as Glacier Bank, the company has expanded both organically and through targeted acquisitions to build a presence across the Mountain West and into the Upper Midwest and Southwest.
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