What caused GBCI's earnings to miss forecasts?

Glacier Bancorp Inc. (GBCI) reported actual earnings per share (EPS) of $0.54 and revenue of $222.99 million for the period ending December 31, 2024. While these figures surpassed Wall Street expectations for EPS, the revenue fell short of forecasts. The bank's net income for the quarter was $61.8 million, which reflected a 37% increase from the prior quarter and a 14% increase from the prior year's fourth quarter. Here are the key factors that may have contributed to the revenue shortfall relative to expectations: |code|Ticker|Name|Date|Revenue Surprise|EPS Surprise|market_code| |---|---|---|---|---|---|---| |GBCI|GBCI.N|Glacier Bancorp|2024 Q1|-5070000|-0.04|169| |GBCI|GBCI.N|Glacier Bancorp|2024 Q2|-1.3422E7|0.02|169| |GBCI|GBCI.N|Glacier Bancorp|2024 Q3|-6709000|0.03|169| |GBCI|GBCI.N|Glacier Bancorp|2024 Q4|-1940000|0.02|169| 1. **Non-Interest Income**: The bank's non-interest income was $32.2 million, which reflected increases in service charges and gains on the sale of residential loans. This indicates that while there was growth in certain non-interest income areas, it may not have been sufficient to offset other factors affecting revenue. 2. **Loan Portfolio Growth**: The loan portfolio increased by $119 million or 3% annualized during the quarter. This growth in loans could potentially lead to higher interest income, which may have been partly offset by the lower-than-expected revenue. 3. **Deposit Costs**: The total core deposit cost, including non-interest bearing deposits, was 1.29%. This suggests that the bank's deposit costs were stable or slightly increasing, which could have impacted net interest income and, consequently, total revenue. 4. **Market Conditions**: General market conditions and economic factors, such as interest rates and economic growth, can affect bank revenues. It is possible that broader economic conditions had an impact on GBCI's revenue, although this would be difficult to quantify. In summary, while GBCI's revenue fell short of forecasts, the bank's strategic initiatives, such as increasing loan yields and growing its loan portfolio, suggest that the revenue shortfall may have been partly offset by these factors. However, the exact reasons for the revenue miss would require a more detailed analysis of the bank's financial performance and market conditions at the time.