What factors influence GBCI's earnings surprises?

Glacier Bancorp (GBCI) has experienced earnings surprises, with recent results surpassing Wall Street expectations. Factors contributing to these surprises include:

1. **Strong Loan Growth**: Glacier Bancorp has seen a 3% annualized increase in its loan portfolio, reaching $16.9 billion. This growth in loans, particularly in the fourth quarter, has contributed to higher interest income and, consequently, higher earnings.
2. **Efficient Cost Management**: The bank has managed to keep its total cost of funding at 180 basis points, with a core deposit funding cost of 136 basis points. This efficient cost management has allowed the bank to maintain profitability despite competitive pressures.
3. **Strategic Acquisitions**: The bank's strategic use of small bank mergers and acquisitions has boosted its market position and enhanced its earnings potential. For instance, the acquisition of Bank of Idaho Holding Co. has expanded GBCI's footprint and market share.
4. **Stable Deposit Costs**: Despite a slight increase in core deposits, the bank has maintained a stable deposit cost environment. This stability in funding costs has allowed GBCI to better manage its net interest margin and earnings.
5. **Improvement in Net Interest Margin**: The bank's net interest margin has improved by 9 basis points to 2.68%, driven by higher loan yields and better asset yields. This improvement has directly contributed to higher earnings.

In summary, GBCI's earnings surprises can be attributed to strong loan growth, efficient cost management, strategic acquisitions, stable deposit costs, and improvement in net interest margin. These factors, combined with effective banking strategies, have enabled the bank to surpass Wall Street expectations and deliver robust financial performance.