Glacier Bancorp Beats Q2 EPS Estimate

Key Points

• - Second quarter (Q2 2025) diluted EPS came in at $0.45, beating the analyst estimate by 18.4%.

• - Revenue for Q2 2025 missed expectations, coming in below the estimated $242.02 million.

• - Non-performing assets increased sharply, up 170% year over year, raising asset quality concerns.

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Glacier Bancorp (NYSE:GBCI), a regional banking company focused on the Rocky Mountain and Western states, released its results on July 24, 2025. The most notable update was the strong outperformance in earnings per share (EPS), which reached $0.45—well above the $0.38 analyst estimate. However, revenue was $208 million, below the $242.02 million consensus. The quarter was marked by robust growth in key banking metrics, but also by a sharp increase in non-performing assets, which will be an important area for future monitoring. Overall, the results highlight both the successes and new risks emerging for the company as it pursues aggressive expansion and integration strategies.

Estimate column reflects analyst consensus for Q2 2025; all other values are actual results.

About Glacier Bancorp: Business Overview and Focus Areas

Glacier Bancorp operates as a community-focused regional bank. Its primary activities are offering traditional banking products such as loans, deposits, and treasury services through a network of branches across eight states, including Montana, Idaho, and Utah. The company has a longstanding strategy of expanding its service area through targeted acquisitions and organic growth, making it one of the larger players in the Rocky Mountain region.

In recent years, its focus has been on acquiring banks in adjacent geographies, such as the closure of the Bank of Idaho purchase in April 2025. These acquisitions supported growth in loans and deposits. Vigilance on credit quality, expense control, and regulatory compliance are critical success factors for Glacier. It also prioritizes technological adaptation to meet increasing demands for digital banking.

Quarter Highlights: Financial Trends, Acquisitions, and Key Metrics

The second quarter featured both strong operating performance and the integration of major acquisitions. Diluted EPS growth of 15% over the prior year was a highlight, bolstered by higher net interest margins—a measure showing the difference between what a bank earns on its loans and pays on deposits. Net interest margin rose sharply to 3.21%, up from 2.68% a year earlier, reflecting better returns on lending activities and managed costs of funding.

Loan growth was pronounced, with the loan portfolio reaching $18.5 billion, up 10% from the prior year and $1.3 billion higher than the prior quarter ended March 31, 2025. Total deposits also grew, advancing 8.0% compared to the prior year, reaching $21.63 billion. These increases resulted in a broader and more profitable banking base, partly due to the completed acquisition of Bank of Idaho, which added assets and expanded Glacier’s reach. In addition, non-interest-bearing deposits—a key source of low-cost funds—were steady at about 30% of total deposits at June 30, 2025, December 31, 2024, and June 30, 2024.

The company managed to contain its total non-interest expense growth to 10% above the prior year’s second quarter, despite acquisition costs and inflationary impacts. Integration expenses from Bank of Idaho amounted to $3.2 million, and acquisition-related credit loss provision contributed $16.7 million to credit costs. Operating efficiency improved with an efficiency ratio of 62.08% compared to 67.97% in the prior year, reflecting increased productivity relative to expenses.

Notably, there was a significant increase in non-performing assets (NPAs), which rose 170% year over year to $48.6 million. These are assets where borrowers are not making scheduled payments, and a rise here can be a warning sign for future loan losses. The provision for credit losses—an expense set aside for potential bad loans—remained elevated, but most of this was tied to recent acquisitions. Despite higher NPAs, the allowance for credit losses as a proportion of loans remained steady at 1.22%. Management reported that key credit metrics outside of NPAs have not shown clear signs of deterioration, but the trend will be carefully watched in the coming quarters.

This period also included the announcement of a pending acquisition in Texas. Glacier is set to acquire Guaranty Bancshares, a $3.1 billion asset bank as of June 30, 2025, in a deal expected to close by year-end. This marks the company's entry into Texas and fits into its long-term market-expansion strategy.

Look Ahead: Management Guidance and Areas to Monitor

Looking ahead, management projects a net interest margin in the range of 3.20% to 3.25%, potentially rising as high as 3.40% or more by year-end, factoring in contributions from recent acquisitions. Loan growth is expected to continue in the low- to mid-single-digit percentage range, supported by a healthy pipeline and planned integration activities. Expense guidance calls for core costs around $151–$152 million per quarter, plus increases as new acquisitions close.

No explicit revenue or EPS targets were provided for upcoming quarters. Management has indicated that credit quality and integration costs, particularly from sizable transactions such as the Texas expansion, will be important things to monitor. Investors should keep an eye on trends in non-performing assets, credit loss provisions, and how well the company maintains its margin levels as it expands into larger and more competitive markets. The quarterly dividend was $0.33 per share, marking the 161st consecutive quarterly dividend payment.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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