Business Context and Reporting Period
Company: Glacier Bancorp, Inc.
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: March 31, 2026
Operations: The Company operates as a bank holding company providing retail and business banking services across nine states (Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, Nevada, and Texas) through its subsidiary, Glacier Bank. The Company operates as a single reportable segment.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 | Q4 2025 |
|---|---|---|---|
| Net Income | $82.1 million | $54.6 million | $63.8 million |
| Diluted EPS | $0.63 | $0.48 | $0.49 |
| Total Assets | $31.73 billion | $27.86 billion | $31.98 billion |
| Total Loans Receivable | $21.03 billion | $17.22 billion | $20.93 billion |
| Total Deposits | $24.74 billion | $20.63 billion | $24.59 billion |
| Net Interest Income | $268.7 million | $190.0 million | $266.1 million |
| Net Interest Margin (TE) | 3.80% | 3.04% | 3.58% |
| Efficiency Ratio | 63.05% | 65.49% | 61.04% |
| Return on Average Assets | 1.05% | 0.80% | 0.78% |
| Return on Average Equity | 7.82% | 6.77% | 6.05% |
| Allowance for Credit Losses (Loans) | $255.8 million | $210.4 million | $255.3 million |
| Non-Performing Assets | $79.5 million | $39.3 million | $68.9 million |
Material Changes vs. Prior Periods
- Profitability Surge: Net income increased 51% year-over-year (YoY) and 29% quarter-over-quarter (QoQ). This was driven by a 41% increase in Net Interest Income (NII) YoY, resulting from higher loan yields (6.16% vs. 5.77% YoY) and loan growth, partially offset by higher non-interest expenses.
- Loan Portfolio Growth: Total loans increased $3.8 billion (22%) YoY. Excluding acquisitions (Bank of Idaho and Guaranty Bancshares), organic loan growth was $638 million (4%). Commercial Real Estate (CRE) remains the largest segment at 67% of the portfolio.
- Deposit Expansion: Total deposits grew $4.1 billion (20%) YoY. Non-interest bearing deposits increased $1.3 billion YoY, representing 30% of total deposits.
- Expense Increases: Total non-interest expense rose $49.2 million (33%) YoY, primarily due to acquisition-related costs ($8.9 million in Q1 2026 vs. $0.6 million in Q1 2025) and increased compensation from staffing levels associated with recent acquisitions.
- Asset Quality Trends: Non-performing assets (NPAs) increased to $79.5 million (0.25% of subsidiary assets) from $39.3 million in Q1 2025. Net charge-offs were $3.1 million, including $2.2 million in deposit overdraft charge-offs. The Allowance for Credit Losses (ACL) to total loans ratio remained stable at 1.22%.
Guidance, Outlook, and Risks
- Management Commentary: Management highlighted strong earnings retention and capital generation. The Company paid its 164th consecutive quarterly dividend of $0.33 per share. The increase in NII was attributed to loan yield expansion and a decrease in the total cost of funding.
- Acquisition Integration: The Company is integrating the Bank of Idaho (acquired April 2025) and Guaranty Bancshares (acquired October 2025). A core system conversion for Guaranty loans occurred in Q1 2026, resulting in the reclassification of approximately $236 million of loans from residential to commercial real estate categories.
- Market Risks: The Company faces risks from geopolitical conflicts, tariffs, inflation, and interest rate volatility. Specific attention is paid to the Commercial Real Estate (CRE) sector, particularly office buildings in central business districts, though management notes their portfolio is diversified in suburban/rural markets with strong occupancy.
- Capital Position: The Company maintains a "Well Capitalized" status under regulatory guidelines. Tangible Common Equity (TCE) to tangible assets was 9.15%.
Investor Verification Checklist
- Acquisition Impact: Verify the extent to which Q1 2026 earnings and loan growth are driven by the Bank of Idaho and Guaranty Bancshares acquisitions versus organic performance.
- CRE Exposure: Review the specific breakdown of the $13.9 billion CRE portfolio, particularly the concentration in office and retail sectors, given the noted industry-wide stress in these areas.
- Non-Performing Assets: Investigate the drivers behind the 102% YoY increase in non-performing assets ($79.5 million) and the adequacy of the ACL coverage (328% of non-performing loans).
- Deposit Overdrafts: Assess the sustainability of the $2.2 million in deposit overdraft net charge-offs included in the Q1 2026 provision.
- Interest Rate Sensitivity: Review the Asset Liability Committee (ALCO) sensitivity analysis regarding Net Interest Income exposure to rate shocks, noting the potential for NII decline in downward rate scenarios.