Glacier Bancorp Q2 Earnings Call Highlights

Glacier Bancorp reported strong second-quarter results, with net income rising 85% year over year to $97.9 million and diluted EPS up 67% to $0.75, helped by margin expansion and higher net interest income. The bank’s net interest margin expanded to 3.90%, and management expects it to reach 4% early in Q4 2026 and potentially exceed that level by year-end as funding costs stay stable and loan growth continues. Credit quality remained solid and loan growth was broad-based, while the company also kept expenses in check and maintained its quarterly dividend at $0.33 per share for the 165th consecutive payout. Glacier Bancorp NYSE: GBCI reported second-quarter net income of $97.9 million, up 19% from the prior quarter and 85% from a year earlier, as net interest income and margin expansion supported earnings growth. Diluted earnings per share totaled $0.75, increasing 19% sequentially and 67% year over year. President and CEO Randall Chesler said the company’s tax-equivalent net interest margin expanded to 3.90%, up 10 basis points from the first quarter and 69 basis points from the second quarter of 2025. Net interest income rose 3% from the first quarter and 33% from the prior-year period to $276 million. Pretax, pre-provision net revenue was $130.8 million, rising 23% sequentially and 53% year over year. Funding Costs Decline, Deposit Base Remains Stable Glacier’s total cost of funding declined to 1.33%, down 7 basis points from the first quarter and 30 basis points from a year ago. Core deposit costs, including noninterest-bearing deposits, were 1.18%, down 2 basis points sequentially. Noninterest-bearing deposits represented 30% of total deposits, unchanged from both the preceding quarter and the year-earlier period. Treasurer Byron Pollan said the June 30 deposit cost was also 1.18% and said deposit costs should remain stable if the Federal Reserve holds interest rates steady. Chesler added that Glacier’s footprint is about 75% rural and 25% urban, and said the company’s emphasis on core customer relationships contributes to its lower-cost funding profile. Average deposits were $24.5 billion during the second quarter, up $112 million from the first quarter on a 2% annualized basis. Period-end deposits were $24.7 billion, down slightly from the prior quarter. Chesler said deposit levels remained stable and continued to support the company’s liquidity and funding strategy. Loan Growth Broad-Based Across Operating Regions Loans ended the quarter at $21.4 billion, increasing $330 million from the first quarter, or 6% on an annualized basis. Chesler described growth as broad-based and attributed it to disciplined production in attractive markets. The company operates across Southwest and Mountain West regions. Chesler said the Southwest continued to perform well and was rebuilding its pipeline after a strong first quarter, while the Mountain West posted a strong second quarter. Chief Credit Administrator Tom Dolan said the second and third quarters have generally been the company’s stronger seasonal lending periods. He said loan pipelines remained healthy, with continued pull-through and back-build activity, as well as tailwinds from construction draws and the agricultural growth season. Glacier continued to generate new loan production yields above 6.5% during the quarter, Dolan said. He characterized pricing as the primary competitive factor, particularly in larger metropolitan markets, while saying the company had not observed substantial competitive pressure on underwriting discipline or loan structure.