Glacier’s NIM Surges 61 BPS YOY—No Longer Dependent on Fed Cuts

Date of Call: Jan 23, 2026

Financials Results

• Revenue: Net interest income $266M for Q4, up 18% YOY; Pretax pre-provision net revenues $362M for 2025, up 42% YOY
• EPS: Diluted EPS $0.49 per share for Q4; $1.99 per share for 2025, up 18% YOY
• Gross Margin: Net interest margin 3.58% for Q4, up 19 bps QOQ and 61 bps YOY

Guidance:

• Net interest margin expected to reach 4% in the second half of 2026.
• Core noninterest expense guided at $189M-$193M for Q1, stepping down through the year.
• Efficiency ratio expected to improve to mid-50s (54%-55%) in 2026.
• Loan growth expected in low to mid-single digits for 2026.
• Full year core operating expense guide of $750M-$766M.
• Securities cash flow expected at ~$425M per quarter in 2026.
• Expect repricing of ~$2B of assets in 2026, gaining 75-100 bps.
• FHLB advances payoff expected in Q1 2026.
• New loan pricing margins approaching 3% in early 2026.

Business Commentary:

Transformative Growth through Acquisitions:

• Glacier Bancorp achieved record total assets of $32 billion, with net income for 2025 reaching $239 million, a 26% increase from the prior year.
• The growth was driven by the strategic acquisitions of Bank of Idaho and Guaranty Bank & Trust, adding over $4.7 billion in assets, the largest acquisition year in the company's history.

Strong Financial Performance and Margin Expansion:

• The company reported a net interest margin of 3.58% for the quarter, an increase of 19 basis points from the prior quarter and 61 basis points from the prior year fourth quarter.
• This improvement was due to a disciplined approach to increasing the net interest margin and strong performance in the loan portfolio, which saw a 21% increase during 2025.

Loan and Deposit Growth:

• The loan portfolio reached $21 billion at the end of 2025, a 21% increase from the prior year, while total deposits increased by 20%, reaching $24.6 billion.
• Growth in loans and deposits was supported by strong seasonal demand and the integration of new markets through acquisitions.

Efficiency and Expense Management:

• Glacier Bancorp's efficiency ratio improved from 66.7% to 63% in 2025, indicating better cost management.
• The company attributed this improvement to increased adoption of technology and strategic cost-saving measures, despite expenses related to acquisitions.

Credit Quality and Capital Position:

• Nonperforming assets remained low at 22 basis points of total assets, and the allowance for credit was maintained at 1.22% of total loans.
• The company's strong capital position was underscored by a 29% increase in tangible stockholders' equity, supporting continued growth and shareholder returns.

Sentiment Analysis:

Overall Tone: Positive

• Management stated: '2025 was a transformative year,' 'delivered strong financial results,' 'exceptional team,' 'solid foundation for future growth,' and 'green lights ahead' for margin expansion. Credit quality remains 'historically low levels' and capital position is 'strong.'

Q&A:

• Question from David Feaster (Raymond James): Concerns about loan growth being slower than expected in Q4 and the contribution timeline from the Guaranty acquisition.
  Response: Growth was seasonally slower due to end of ag and construction seasons, but pipeline is at a record level. Guaranty is expected to contribute meaningfully starting immediately.

• Question from David Feaster (Raymond James): Follow-up on margin trajectory and dependence on Fed cuts.
  Response: Confident in reaching 4% NIM in second half 2026, not Fed-dependent, driven by structural repricing and asset growth.

• Question from David Feaster (Raymond James): Inquiry on core expense run rate and potential investments/hiring.
  Response: Core expenses guided at $189M-$193M for Q1, stepping down through the year. No material increase in expense for hiring; focus on efficiency via technology.

• Question from Andrew Terrell (Stephens): Request for full-year expense expectations and clarification on quarterly guides.
  Response: Core expenses estimated at $187M-$192M per quarter for Q2-Q4, leading to full-year guide of $750M-$766M.

• Question from Andrew Terrell (Stephens): Questions on new loan origination yields and competition.
  Response: New loan spreads are around 300 bps over index, with margins improving to nearly 3% in early 2026; repricing of ~$2B assets expected to add 75-100 bps.

• Question from Andrew Terrell (Stephens): Request for update on Guaranty's tangible dilution and payback period.
  Response: Tangible book value payback period remains six months as previously stated.

• Question from Kelly Motta (KBW): Clarification on expense guide and efficiency ratio drivers.
  Response: Higher expenses expected with revenue growth and talent additions; efficiency ratio improving due to expense control and revenue growth.

• Question from Kelly Motta (KBW): Inquiry on new loan pricing trends and their impact.
  Response: Encouraged by new loan margins approaching 3% in early 2026; trend may continue.

• Question from Kelly Motta (KBW): Request for securities cash flow cadence and yields.
  Response: ~$425M cash flow per quarter from securities in 2026, with yields in low to mid-1% range.

• Question from Jeff Rulis (D.A. Davidson): Questions on organic loan growth drivers and credit-related balance sheet adjustments.
  Response: Tailwinds include construction funding and seasonal line utilization; headwinds were early term payoffs and low CRE cap rates.

• Question from Jeff Rulis (D.A. Davidson): Inquiry on M&A outlook in new regions.
  Response: M&A environment is good with ongoing conversations; focus currently on completing Guaranty conversion.

• Question from Andrew Terrell (Stephens) - follow-up: Request for repricing figures for 2027 and FHLB payoff timing/cash flow uses.
  Response: Repricing in 2027 expected to be comparable to 2026 (~$2B-$2.5B). FHLB payoff expected in Q1 2026, funded by securities cash flow; excess cash to be redeployed into bond book.

• Question from David Feaster (Raymond James) - follow-up: Early read on Guaranty integration and future potential.
  Response: Integration is going well with minimal disruption; excited about expanded balance sheet, sophisticated tools, and growth opportunities in Texas markets.

• Question from David Feaster (Raymond James) - follow-up: Long-term net interest margin outlook beyond 2026.
  Response: Expect continued expansion beyond 4% in 2027, building on current momentum.

• Question from Matthew Clark (Piper Sandler): Clarification on expense guide for upcoming quarter.
  Response: Q1 core noninterest expense guide is $189M-$193M.

• Question from Matthew Clark (Piper Sandler): Inquiry on deposit cost increase and future trend.
  Response: Deposit cost uptick was due to Guaranty acquisition; expected to trend down going forward.

• Question from Matthew Clark (Piper Sandler): Timing of cost savings from Guaranty acquisition.
  Response: Cost savings will take hold after conversion in February; integration is progressing well.

• Question from Matthew Clark (Piper Sandler): Inquiry on Q4 net charge-off increase and its nature.
  Response: Increase was normal year-end cleanup, not outsized or unusual.

Contradiction Point 1

Net Interest Margin (NIM) Trajectory and Achievability

Contradiction on whether NIM is on track to reach 4% and the dependency on external factors.

Is the net interest margin (NIM) on track to reach 4% this year? What factors support this outlook and how reliant is it on Fed rate cuts? - David Feaster (Raymond James & Associates, Inc., Research Division)

2025Q4: Yes, NIM progress is strong with structural repricing drivers that are not Fed-dependent. The company expects to reach 4% in the second half of 2026. - [Byron Pollan](Senior VP & Treasurer)

Is a net interest margin exceeding 4% achievable in the short term? - David Feaster (Raymond James & Associates, Inc., Research Division)

2025Q3: Reaching a 4% net interest margin is considered a matter of 'when, not if'... It's possible the margin could reach a full handle (4.00%) by the end of 2026. - [Byron Pollan](Senior VP & Treasurer)

Contradiction Point 2

Expense Guidance and Moderation Timeline

Contradiction on the timing and mechanism for achieving expense savings from the Guaranty acquisition.

What is the core expense run rate heading into the new year, and how do you expect expenses to trend, including any plans for investments or hiring? - David Feaster (Raymond James & Associates, Inc., Research Division)

2025Q4: Q1 core expense guide is $189M-$193M, then stepping down through the year. - [Byron Pollan](Senior VP & Treasurer)

Will Q4 expenses of $185-189 million moderate by 2026 due to Guaranty conversion cost savings? - Andrew Terrell (Stephens Inc., Research Division)

2025Q3: Cost savings will begin to kick in after the Q1 2026 conversion, leading to moderation in noninterest expenses. - [Ron Copher](Executive VP, CFO & Secretary)

Contradiction Point 3

Guaranty Acquisition Integration and Contribution

Contradiction on the timing of meaningful contribution and cost savings from the Guaranty acquisition.

What factors contributed to slower-than-expected loan growth, what are expectations for future growth, and when is Guaranty expected to contribute meaningfully? - David Feaster (Raymond James & Associates, Inc., Research Division)

2025Q4: Guaranty has already started contributing meaningfully since the acquisition. - [Tom Dolan](Senior VP & Chief Credit Officer)

How are organic loan pipelines shaping up, and where are hiring opportunities, particularly in Texas post-Guaranty deal announcements? - David Pipkin Feaster (Raymond James & Associates)

2025Q2: The Guaranty team is already well-staffed but will be selective. - [Randall M. Chesler](CEO)

Contradiction Point 4

Net Interest Margin (NIM) Trajectory and Achievement

Contradiction on NIM growth drivers and timeline to reach specific milestones.

Is the net interest margin (NIM) on track to reach 4% this year, and what factors support this confidence, particularly regarding reliance on Fed cuts? - David Feaster (Raymond James & Associates, Inc., Research Division)

2025Q4: Yes, NIM progress is strong with structural repricing drivers that are not Fed-dependent. The company expects to reach 4% in the second half of 2026. - [Byron Pollan](Senior VP & Treasurer)

Will the strong margin trajectory continue into next year, and are there structural factors hindering progress toward pre-pandemic levels? - Kelly Ann Motta (Keefe, Bruyette, & Woods)

2025Q2: The Guaranty acquisition could add an additional 6-7 bps... Continued growth is expected throughout 2026. returning to historic margin norms is possible by year-end 2026. - [Byron J. Pollan](Senior VP & Treasurer)

Contradiction Point 5

Core Expense Guidance and Cadence

Contradiction on the quarterly cadence and full-year range for core operating expenses.

What is the full-year expense guidance for 2026? - Andrew Terrell (Stephens Inc., Research Division)

2025Q4: Core operating expenses for Q2-Q4 are expected to be $187M-$192M per quarter. The full-year core expense guide is $750M-$766M. - [Ron Copher](Executive VP, CFO & Secretary)

Can you detail the margin trajectory and structural changes, including the impact of the Bank of Idaho acquisition? Also, clarify the expected discount accretion and provide an update on the expense guidance? - Jeff Rulis (D.A. Davidson)

2025Q1: The core noninterest expense guide for 2025 is **$151–$154 million per quarter**, with Q1 core expense adjusted to **$152 million** after removing one-time items. For Q2, add **$6 million** due to the Bank of Idaho... for Q3 and Q4, add **$9–$10 million** each quarter. - [Ron Copher](Executive VP, CFO & Secretary)