Glacier Bancorp Q4 Earnings Call Highlights

Core Insights - The company experienced significant growth in net interest margin and net interest income, driven by higher loan yields and lower funding costs [1][2] - 2025 was characterized as a transformative year due to two major acquisitions, record balance sheet growth, and improved profitability metrics [7] Financial Performance - Loan yield increased to 6.09%, up 12 basis points from the previous quarter, while total earning asset yield rose to 5.00%, up 14 basis points sequentially [1] - Tax-equivalent net interest margin reached 3.58%, a 19 basis point increase from the prior quarter and a 61 basis point increase year over year [2] - Net interest income for the quarter was $266 million, up $41 million or 18% sequentially, and $889 million for the full year, up $184 million or 26% year over year [2] - Diluted earnings per share were $0.49 for the quarter and $1.99 for the full year, representing an 18% increase year over year [4] Balance Sheet and Growth - Total assets exceeded $30 billion during the quarter, ending the year at $32 billion, with loans totaling $21 billion, an increase of $2 billion or 11% from the prior quarter [3] - Deposits reached $24.6 billion, increasing $2.7 billion or 12% sequentially [3] Acquisitions and Integration - The company completed two acquisitions in 2025, including Bank of Idaho and Guaranty Bank & Trust, expanding its footprint in Idaho and Texas [6][7] - The integration of Guaranty Bank & Trust is expected to yield cost savings post-conversion in February [18] Expense Management - Non-interest expense totaled $195 million for the quarter, up 16% from the prior quarter, primarily due to acquisition-related costs [9] - Core operating non-interest expense guidance for 2026 is set between $750 million and $766 million [12] Efficiency and Credit Quality - The efficiency ratio improved from 66.7% at the beginning of 2025 to 63% by year-end, with a target of reaching 54% to 55% efficiency [13] - Credit quality remains strong, with non-performing assets at 22 basis points of total assets and net charge-offs at 6 basis points of total loans for the year [16] Future Outlook - The company anticipates reaching a 4% net interest margin in the second half of 2026, supported by asset repricing [8] - Loan growth is targeted at low- to mid-single-digit percentages in 2026, with a strong early-year pipeline [14]