Glacier Bancorp Q2 2025 Earnings Report

Glacier Bancorp EPS Results

• Actual EPS: $0.45
• Consensus EPS: $0.49
• Beat/Miss: Missed by -$0.04
• One Year Ago EPS: $0.39

Glacier Bancorp Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Glacier Bancorp Announcement Details

• Quarter: Q2 2025
• Date: 7/24/2025
• Time: After Market Closes
• Conference Call Date: Friday, July 25, 2025
• Conference Call Time: 11:00AM ET

Glacier Bancorp (NYSE:GBCI) is a regional bank holding company headquartered in Kalispell, Montana. Through its banking subsidiaries and community banking divisions, the company provides financial services to individuals, families, businesses and organizations, with a focus on relationship-based community banking.

Its products and services include checking and savings accounts, certificates of deposit, residential and commercial real estate lending, consumer loans, commercial and agricultural loans, online and mobile banking, treasury management and other business banking services. The company also offers wealth management and trust-related services in select markets.

Glacier Bancorp traces its history to the founding of Glacier Bank in 1955. The company serves communities across the Rocky Mountain and Pacific Northwest regions, including markets in Montana, Idaho, Wyoming, Utah and Washington. Its banking operations are conducted through locally branded divisions intended to preserve community-level decision-making while benefiting from the resources of a larger financial institution.

Randy Chesler serves as Glacier Bancorp’s president and chief executive officer. The company is listed on the New York Stock Exchange under the symbol GBCI.

Glacier Bancorp Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Completed the acquisition of Bank of Idaho, adding $1.4 billion in assets and expanding the franchise in Idaho and Eastern Washington.
• Positive Sentiment: Announced a definitive agreement to acquire Guaranty Bancshares, Inc. ($3.1 billion in assets), marking Glacier’s entry into Texas and broadening its Southwest footprint.
• Positive Sentiment: Loan portfolio rose 8% quarter-over-quarter to $18.5 billion, with 6% annualized organic growth led by commercial real estate.
• Positive Sentiment: Net interest margin expanded to 3.21% (up 17 bps from Q1), reflecting higher loan yields and lower funding costs—six straight quarters of margin improvement.
• Negative Sentiment: Net income of $52.8 million (EPS $0.45) declined 3% from the prior quarter due to $19.9 million in credit-loss and acquisition-related charges.

Presentation

[Operator]

Good day and thank you for standing by. Welcome to the Glacier Bancorp second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the. Conference over to your speaker today, Randy Chesler, President and CEO of Glacier Bancorp. Please go ahead.

[Randy Chesler, President and CEO at Glacier Bancorp]

Good morning and thank you for joining us today. With me here in Kalispell is Ron Copher, our Chief Financial Officer, Tom Dolan, our Chief Credit Administrator, Angela Dossey, our Chief Accounting Officer, and Byron Pollan, our Treasurer. I'd like to point out that the discussion today is subject to the same forward-looking considerations outlined starting on page 13 of our press release, and we encourage you to review this section. We delivered an excellent quarter, continuing our momentum with higher loan yields, lower deposit cost, increasing margin, solid growth, and disciplined expense management. We successfully completed the acquisition of Bank of Idaho, adding $1.4 billion in assets and expanding our presence in Idaho and Eastern Washington. The integration is progressing very smoothly, and we're excited about the long-term opportunities this brings.

[Randy Chesler, President and CEO at Glacier Bancorp]

We also announced a definitive agreement to acquire Guaranty Bancshares, a $3.1 billion bank headquartered in Mount Pleasant, Texas. This marks our first entry into the state and represents a significant step for our company and in our strategic expansion of our Southwest presence. We reported net income of $52.8 million for the second quarter, or $0.45 per diluted share. Our results include $19.9 million in credit loss expense and acquisition-related expenses, primarily from the completion of the Bank of Idaho acquisition. While the second quarter net income represents a decline of 3% from the prior quarter due to acquisition expenses, it reflects an 18% increase in net income and a 15% increase in earnings per share compared to the same quarter last year. Our loan portfolio grew $1.3 billion to $18.5 billion, an 8% increase from the prior quarter, with $239 million or 6% annualized in organic growth.

[Randy Chesler, President and CEO at Glacier Bancorp]

Commercial real estate continues to be a key driver of loan growth. Deposits also grew, reaching $21.6 billion, up 5% quarter over quarter. Notably, noninterest-bearing deposits increased 8% and continue to represent 30% of total deposits. Deposits and repurchase agreements organically increased by $43 million or 1% annualized from the prior quarter. We reported net interest income of $208 million, up $17.6 million or 9% from the prior quarter and up $41.1 million or 25% from the same quarter last year. This growth was driven by higher average loan balances, improved loan yields, and declining funding costs. Our net interest margin on a tax-adjusted basis expanded to 3.21%, up 17 basis points from the first quarter and up 53 basis points year-over-year.

[Randy Chesler, President and CEO at Glacier Bancorp]

This marks our sixth consecutive quarter of margin expansion, reflecting the strength of our loan portfolio repricing, our ability to get good margin on new loans, and our continued focus on managing funding costs. The loan yield of 5.86% in the current quarter increased 9 basis points from the prior quarter loan yield and increased 28 basis points from the prior year. In the second quarter, the total earning asset yield of 4.73% in the current quarter increased 12 basis points from the prior quarter and increased 36 basis points from the prior year. Second quarter total funding cost declined to 1.63%, down 5 basis points from the prior quarter as we reduced higher-cost Federal Home Loan Bank borrowings by $265 million in the quarter. Core deposit cost remained stable at 1.25%. On the expense side, noninterest expense was $155 million, up 3% from the prior quarter.

[Randy Chesler, President and CEO at Glacier Bancorp]

This includes $3.2 million in acquisition-related cost. Compensation and benefits rose due to increased headcount from the Bank of Idaho acquisition and annual merit increases. Noninterest income totaled $32.9 million in the current quarter, up slightly from the first quarter and up 2% year-over-year. Service charges and fees increased 8% from the prior quarter while gains on loans remained steady. Our efficiency ratio improved to 62.08%, down from 65.49% in the prior quarter and 67.97% a year ago, reflecting positive operating leverage. Credit quality remains very strong. Our nonperforming assets remain low at 0.17% of total assets and net charge-offs were just $1.6 million for the quarter. Our allowance for credit losses remains at 1.22% of loans, reflecting our conservative approach to risk management. We recorded a provision for credit loss of $20.3 million, which includes $16.7 million related to the Bank of Idaho.

[Randy Chesler, President and CEO at Glacier Bancorp]

acquisition. Excluding that, our core provision for credit loss was $3.6 million. We continue to maintain a strong capital position. Tangible book value per share increased to $19.79, up 8% year-over-year, and we declared our 161st consecutive quarterly dividend of $0.33 per share, underscoring our commitment to delivering consistent shareholder returns. We are very pleased with our performance this quarter. Our expanding footprint, unique business model, strong business performance, disciplined credit culture, and strong capital base provide a solid foundation for future growth. That ends my formal remarks, and I would now like the conference call operator to open the line for any questions our analysts may have.

[Operator]

As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q and A roster. Our first question comes from Jeff Rulis with D.A. Davidson. Your line is open.

[Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson]

Thanks. Good morning.

[Randy Chesler, President and CEO at Glacier Bancorp]

Morning Jeff.

[Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson]

I wanted to check in on the margin. Certainly seems to be tracking really well to the guide. I think you've talked about it, a 3.50% exit towards the end of the year. Just wanted to see if there's anything in the current quarter on kind of one-timer or accretion bump, or is that all-in number kind of again stair stepping towards that exit, kind of pre-Guaranty.

[Byron Pollan, Treasurer and SVP at Glacier Bancorp]

Yes Jeff, this is Byron. I can address the margin. Yes, we do think that we'll see continued growth. We did see great traction in the second quarter from the NIM drivers that we've discussed in the past and we do think that we can continue this pace of increase at least for the next couple of quarters. Our margin grew 17 basis points in the second quarter and we think we can repeat that level of growth in Q3 and Q4. To put a range on it, maybe we grow 15 to 17 basis points per quarter. Keep in mind that does include the impact from the Bank of Idaho. This does represent a little bit of an increase from our prior margin guide. We did see better than expected lift from the Bank of Idaho.

[Byron Pollan, Treasurer and SVP at Glacier Bancorp]

We also saw stronger than expected loan growth in the second quarter which helped lift our margin. There is some variability around that outlook depending on what happens with loans between now and the end of the year. What happens with deposits between now and the end of the year could drive some variability there. Also with Guaranty and the announced acquisition there, depending on the timing of when we close that acquisition, I think Guaranty could add an additional 6 to 7 basis points on top of what we just discussed.

[Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson]

Byron, thank you.

[Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson]

Really detailed. Appreciate it.

[Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson]

It sounds really positive on the expense side, Ron. You know, maybe we start applying at 80% of your expense guide, but I guess the bank's been pretty efficient.

[Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson]

I guess, ex merger costs, if we.

[Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson]

Think about the third quarter, we get a little pause between deals potentially, I guess, ex merger costs and getting a full quarter of Bank of Idaho, kind of getting into that $155 million. Maybe that's a little skinny. If you could just course correct on where you think expenses plus growth head from here.

[Ron Copher, CFO at Glacier Bancorp]

Okay, thank you. Just let me go back for the benefit of everyone that $153.5 million Randy covered in his opening remarks, $3.5 million below second quarter guide of $157 million-$158 million for core noninterest expense. Just want to remind everyone that that guide included $6 million for Bank of Idaho for the two months after its April 30 acquisition. Think back to the first quarter, the second quarter had the same environment in that we remain cautious in spending given the continuing economic uncertainty, market volatility. I think we're all aware of the noise in Washington, etc. Of that $3.5 million, $500,000, half a million, is attributable to Bank of Idaho coming in lower than the $6 million. They're not yet converted. That will happen later, but nonetheless came in lower by $500,000.

[Ron Copher, CFO at Glacier Bancorp]

Of that remaining $3 million, $1.2 million is due to lower third party outside consulting services. Another $300,000 is lower occupancy and facilities expense. In part you noticed last year in.

[Ron Copher, CFO at Glacier Bancorp]

This quarter as well, we had the.

[Ron Copher, CFO at Glacier Bancorp]

Number of sales of former branch facilities. It's getting more efficient there. The remainder of that $1.5 million was really spread across many other expenses. Collectively, including Bank of Idaho, our Corporate Department, each of the bank divisions have done a great job in controlling their expenses. Of that $1.5 million, there was no category greater than $250,000. It really was pretty widespread. Looking ahead to the second half of 2025, the previous guide I gave in April for core noninterest expense was $160 million-$162 million for each of the third and fourth quarters. Recall that higher guide reflects the $9 million-$10 million increase because we're going to have three months of the Bank of Idaho versus the $6 million that was there only for the two months in quarter two. That's an increase of $3 million to $4 million on each side of that guide.

[Ron Copher, CFO at Glacier Bancorp]

For the third quarter, we're going to reduce the core noninterest expense guide to $159 to $161 million. For the fourth quarter, the guide will go to $161 to $163 million. I do want to point out that increase. We had $153.5 million. If you compare that back to the $152 million we had for Q1, that represents a 1% increase. Just to add perspective for quarter three, the midpoint I want to focus on is $160 million on the new guide. That represents an increase of $6.5 million over the $153 million operating expenses for Q2. That $6.5 million includes incrementally $3.5 million for the Bank of Idaho acquisition. The remainder is $3 million from all the other division Corporate Departments. I want to add perspective in that $3 million.

[Ron Copher, CFO at Glacier Bancorp]

Aside from Bank of Idaho, that represents a 2% increase when you compare that to the base of $153.5 million for Q2.

[Ron Copher, CFO at Glacier Bancorp]

We are. Going to see some increase in that $3 million because we've had some pretty strong deferred expenses. Back in Q1, as a reminder, third party consulting came in lower by almost $800,000. Here, as I said a moment ago, third party consulting came in $1.2 million. Add that together, $2 million. We are expecting some additional hiring in the third quarter and some of that deferred consulting will show up, the bulk of it. There will be other increases, but that's.

[Ron Copher, CFO at Glacier Bancorp]

The bulk of it.

[Ron Copher, CFO at Glacier Bancorp]

Looking to the fourth quarter, the midpoint for the Q4 guide is $162 million, which is $2 million more.

[Ron Copher, CFO at Glacier Bancorp]

Over the third quarter estimate.

[Ron Copher, CFO at Glacier Bancorp]

To put that into perspective, that $2 million over the Q3 base midpoint, $160 million, that's a 1.25% increase. My point is that we're going to have a step up in Q3, but overall we continue to moderate the growth in our operating expenses. Just as a reminder, operating core means it's including M&A and any gain or losses on the sale of branches, anything else that's really unique here. Let me just so I don't forget, assuming we're going to close on Guaranty and say October 31st, you would add $14 million to the guide I gave for the fourth quarter to include Guaranty. With that, let me ask for any questions.

[Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson]

No, Ron, very thorough.

[Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson]

I appreciate it.

[Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson]

Thanks for walking me through that.

[Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson]

I'll step back.

[Operator]

Thank you. Our next question comes from Matthew Clark with Piper Sandler. Your line is open.

[Matthew Clark, Managing Director at Piper Sandler]

Hey, thanks. Good morning, everyone.

[Randy Chesler, President and CEO at Glacier Bancorp]

Good morning.

[Matthew Clark, Managing Director at Piper Sandler]

Just going back to the loan yield expansion, can you quantify just how much in purchase accounting accretion contributed to interest income this quarter versus last quarter? I'm just trying to get a handle on the core loan yield trends.

[Randy Chesler, President and CEO at Glacier Bancorp]

I think it's right around 4 basis points for this quarter.

[Matthew Clark, Managing Director at Piper Sandler]

Okay. Last quarter, do you recall?

[Randy Chesler, President and CEO at Glacier Bancorp]

Yeah, that was closer to eight.

[Matthew Clark, Managing Director at Piper Sandler]

Okay, thank you. Great. On your interest-bearing deposit costs, I think they were up one basis point this quarter. Trying to get a sense for if that was from Bank of Idaho inflating that number a little bit or if there is. I know the Fed been on hold. You guys have probably been pretty steady in terms of your rates out there, just trying to get a sense for any impact from the deal and what you're seeing on the pricing front.

[Byron Pollan, Treasurer and SVP at Glacier Bancorp]

Yeah, Matthew, that was from the acquisition of Bank of Idaho. I think from here, in terms of deposit cost, I would see our cost as being fairly stable, kind of moving sideways. A catalyst for change or additional cost reduction would be another Fed cut. If we do get that, I would say that's on our cost of deposits. I would say on our cost of funds, we do expect that to continue to come down as we expect it to continue to pay down our higher cost FHLB borrowings.

[Matthew Clark, Managing Director at Piper Sandler]

Got it. If you had the spot.

[Matthew Clark, Managing Director at Piper Sandler]

Rate on deposits at the end of June.

[Matthew Clark, Managing Director at Piper Sandler]

I'll take it. What was the average margin in the month of June?

[Byron Pollan, Treasurer and SVP at Glacier Bancorp]

Yes spot rate at the end of June on deposits was 1.25%. The spot margin, adjusted for timing differences within the quarter, spot margin in June was $330 million.

[Matthew Clark, Managing Director at Piper Sandler]

Okay, $330 million for the month, not the end of June.

[Byron Pollan, Treasurer and SVP at Glacier Bancorp]

Correct.

[Matthew Clark, Managing Director at Piper Sandler]

Okay, thank you.

[Byron Pollan, Treasurer and SVP at Glacier Bancorp]

Welcome.

[Operator]

Thank you. Our next question comes from David Feaster with Raymond James & Associates Inc.Your line is now open.

[David Feaster, Director at Raymond James]

Hey, good morning, everybody.

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

Morning.

[Matthew Clark, Managing Director at Piper Sandler]

I wanted to touch on the organic growth side. Obviously, we got a couple deals going on. There's a lot of focus there, but your organic loan growth was solid. I'm curious maybe how pipelines are shaping up today, the pulse of your clients with maybe tariff uncertainty abating a bit, and just maybe the competitive landscape from your perspective.

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

Yeah, David, this is Tom. We were quite happy with the organic growth. You know, second quarter is generally seasonally stronger.

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

In addition to that, not.

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

Only from a top line perspective, but also we enter the construction and the agriculture season, we see stronger line utilization, which is a tailwind as well. As you mentioned, production levels were seasonally strong as well, particularly in theory. From a pipeline perspective, we continue to see good and consistent deal flow, and customers continue to be optimistic.

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

I think the instances of us hearing.

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

From a customer that they're tapping the brakes and waiting for more clarity.

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

Fewer and farther between.

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

Certainly more so today than from the beginning of the quarter. I think when you look at the whole year, second quarter is generally the strongest. Third quarter also shows some strength, a little bit less so in first quarter and fourth quarter. We've got some tailwinds as well.

[David Feaster, Director at Raymond James]

Okay, can you maybe touch on the competitive side? Anecdotally, we hear across the industry that competition is increasing, especially on the pricing front. Are you seeing that, and have you seen anything beyond pricing? Are you seeing competition maybe increase on structure and underwriting?

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

Yes, I think it is.

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

We're not really seeing that much competition on the structure side, which is encouraging. We're glad to see that. We do see it on the pricing a little bit in some of the larger markets, but areas where we have more of a commanding market share.

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

We tend to get pretty strong margins. If you look at just margins overall, we're still seeing really strong production yields. I mean, for the quarter we were at 7.35% average production yield for the quarter, which is still a pretty good spread.

[David Feaster, Director at Raymond James]

Okay, that's great.

[David Feaster, Director at Raymond James]

You touched on some hiring that you guys are looking at potentially here in the third quarter. I'm curious, where are you seeing opportunities? Are these revenue producers or more back office, and then just again high level, it's still early. I'm curious maybe your thoughts on potential opportunities in Texas just given the additional M&A that's come after your deal with announced and whether the Guaranty team might be looking at opportunities to add talent there from that potential disruption.

[Randy Chesler, President and CEO at Glacier Bancorp]

Yeah, the hiring that we've been.

[Randy Chesler, President and CEO at Glacier Bancorp]

Very slow to kind of fill positions, and so Dave, some of this is just infrastructure back office to support some of the growth that's. We've stretched a couple places, so we're going to fill those. There is some revenue expansion hiring in there as well, but the bulk of it is more operational across the 17 divisions in the holding company that Texas. Yeah, there's a lot going on down there. We've been talking to the Guaranty folks, and they are all over these changes, and so I think there will be some opportunity as some of those transactions pan out. That being said, we've got a great staff down there. Ty and his team have a great lending staff already in place. I think they'll be very selective. There could be some opportunities given some of the transactions that have been announced.

[David Feaster, Director at Raymond James]

Okay, that's helpful. Thanks, everybody. You're welcome.

[Operator]

Thank you. As a reminder, to ask a question, please press star one one on your telephone. Again, that is star one one to ask a question. Our next question comes from Andrew Terrell with Stephens. Your line is open.

[Andrew Terrell, Stephens]

Hey, good morning.

[Randy Chesler, President and CEO at Glacier Bancorp]

Morning.

[Andrew Terrell, Stephens]

Wanted to stick on loan growth for a bit. The production and kind of pipeline commentary all sounds pretty solid and good to hear. You guys are getting some good pricing as well. I know that in the first quarter there were some heavier payoffs. To the extent you guys do have kind of line of sight into that, do you feel like the payoff pressure is somewhat abated for you, kind of moving into the back half of the year? Just kind of rounding out the loan growth, do you feel like this kind of mid single digit organic pace of growth is kind of achievable at least in the near term?

[Tom Dolan, Chief Credit Officer at Glacier Bancorp]

Yeah, the payoff pressure, we still saw that in the second quarter. Especially when you're looking at some of the multifamily stuff where we did construction and stabilization, and then the asset either sold or went to a secondary provider, that was still present in the second quarter. I do see that possibly abating somewhat towards the end of the year, just looking at the volume and the cadence of those projects coming around. I think the growth in the second quarter was boosted by a couple of different factors: one, some increase in top line production, and then also better line utilization as we entered the construction and agc. I think for the full year, that low to mid single digits is still where we're comfortable.

[Andrew Terrell, Stephens]

Got it.

[Andrew Terrell, Stephens]

Okay, thank you.

[Andrew Terrell, Stephens]

Maybe for the margin.

[Andrew Terrell, Stephens]

I'm. Looking at the borrowing position, you guys are obviously doing a good job in deleveraging. I'm curious as you kind of give the margin expectations, and I appreciate all the color there. How should we think about the pace of borrowing reduction that we could see over the balance of 2025? Is $250 million or so off this quarter on the FHLB advances, is that kind of a fair run rate, or does it more match securities cash flow? Just how should we think about the borrowing reduction, just size of the balance sheet?

[Byron Pollan, Treasurer and SVP at Glacier Bancorp]

Yeah, we put a ladder of term FHLB advances in place some time ago, and those mature on a quarterly basis, and the quarterly maturities do increase. I think we had a $300 million maturity in Q2 that was offset. We did inherit $35 million of advances from Bank of Idaho. In terms of the third quarter, I think we'll see north of $300 million. In terms of FHLB maturity, Q4, I think somewhere in the $400 million-$440 million range. In terms of maturities, I do expect that we'll be able to pay down most, if not all, of those maturities. We'll evaluate what the lending opportunities are on Tom's side of the balance sheet, what deposits are doing. To answer your question, in terms of maturity, we do have progressively increasing maturities, and the final maturity will land in the first quarter of next year.

[Byron Pollan, Treasurer and SVP at Glacier Bancorp]

At that point, those term advances will have matured.

[Andrew Terrell, Stephens]

Understood. Okay, maybe a slightly increasing pace, and I'm assuming that's kind of fully reflected in the margin details, the margin guidance you gave earlier.

[Byron Pollan, Treasurer and SVP at Glacier Bancorp]

Yes, it is.

[Andrew Terrell, Stephens]

Okay, great.

[Andrew Terrell, Stephens]

The rest of mine have been addressed.

[Andrew Terrell, Stephens]

Thanks for taking the questions.

[Operator]

Welcome. Thank you. Our next question comes from Kelly Motta with KBW. Your line is now open.

[Kelly Motta, Director and Equity Research at KBW]

Hey, good morning. Thanks for the question.

[Randy Chesler, President and CEO at Glacier Bancorp]

Morning.

[Kelly Motta, Director and Equity Research at KBW]

I did want to stick on the margin. It's great expansion this quarter. Nice, nice loan growth. It seems like the trajectory remains quite strong as we look to next year. Are there any other factors in terms of either an acceleration or slowdown of back book pricing that would mitigate some of the really strong pickup we saw this year? Maybe said another way, pre-pandemic, you were 4% plus. Is there anything structurally different that would prohibit you from continuing to make progress towards that level?

[Byron Pollan, Treasurer and SVP at Glacier Bancorp]

Kelly, I do think that we'll continue to see margin growth throughout 2026. I don't want to put any numbers on it, but yes, I do think that the tailwinds that we're feeling now will persist and kind of carry us through the end of next year. From a margin growth perspective, I don't see anything that would prohibit us from kind of getting back to some of our historic margin norms maybe by the end of next year.

[Kelly Motta, Director and Equity Research at KBW]

Okay, that's really helpful and I appreciate all the color. Ron, on the expense moving parts at a higher level, as you guys kind of grow and scale up through the real success you've had with acquisitions, are there any other areas of technology or within the organization that you're looking to strengthen in order to continue to support your really nice growth that you've been having these past couple years?

[Randy Chesler, President and CEO at Glacier Bancorp]

The technology, Kelly, in terms of, we are looking at it in a number of places. It's making us more efficient. You're seeing some of that in the reduction in the efficiency.

[Randy Chesler, President and CEO at Glacier Bancorp]

You know.

[Randy Chesler, President and CEO at Glacier Bancorp]

We're continuing on those things. Implementation of a commercial loan platform across the entire company is really delivering really, really strong results. That's also welcomed by the folks that we're acquiring. They get excited about the more advanced technology and the capabilities to do a lot of things that make their lives easier. I think ultimately the customer has a better experience. Our treasury platform, we're upgrading that and pushing that out right now. That's going really well. That gives better tools to customers where they can manage their account and their finances more effectively. Those are just a couple of things. We continue to look at our roadmap and look for ways to enhance things. There's more behind that. We just tend to wait until they're out and getting traction before we really get into detail and describe them.

[Kelly Motta, Director and Equity Research at KBW]

Thanks, Randy.

[Kelly Motta, Director and Equity Research at KBW]

I'll step back.

[Randy Chesler, President and CEO at Glacier Bancorp]

Welcome.

[Operator]

Thank you. I'm showing no further questions at this time. I would now like to turn it back to Randy Chesler for closing remarks.

[Randy Chesler, President and CEO at Glacier Bancorp]

Thank you everyone for joining us today. We appreciate your interest, as always. If you have any questions, give us a ring and have a fantastic weekend. Thanks again.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Tom Dolan, Chief Credit Officer
• Randy Chesler, President and CEO
• Byron Pollan, Treasurer and SVP

Analysts

• Jeff Rulis, Managing Director and Senior Research Analyst at D.A. Davidson
• Kelly Motta, Director and Equity Research at KBW
• David Feaster, Director at Raymond James
• Ron Copher, CFO at Glacier Bancorp
• Andrew Terrell, Stephens
• Matthew Clark, Managing Director at Piper Sandler