Oct 23, 2026 earnings call — Record quarterly net income and margin expansion
Glacier reported record net income of $105 million and a net interest margin of 4.01% in the third quarter.
Revenue $0.3B (est $0.3B) · EPS $0.81 (est $0.79)
Key quotes
"Loan repricing, approximately $3.5 billion of loans currently in portfolio will reprice up 125 to 150 basis points in the next 12 months."
"Noninterest-bearing deposits increased $279 million or 15% annualized to $7.7 billion and represented 30% of total deposits at quarter end."
"I would say overall origination activity remains solid."
Analyst Q&A 5
Southwest growth and margin drivers
Q (Jeff Rulis · D.A. Davidson): He asked about growth in the quarter, specifically Texas/Southwest performance and outlook for Southwest and Rocky Mountain. He also asked about the components and outlook for further asset repricing and margin drivers into 2027.
A: The Southwest division outperformed the bank and had about 8% annualized growth, with a healthy pipeline and deal flow in both Southwest and Mountain footprints. Management said origination activity is solid, especially in commercial real estate and construction, and they remain comfortable with a low to mid-single-digit outlook. They also said asset repricing has momentum: investments reinvesting roughly 350 basis points higher, about $3.5 billion of loans will reprice 125 to 150 basis points, and new loan yields in the high 6s will lift margin through '27.
"We do have some meaningful momentum on the asset repricing, and that's going to carry us through with increasing margin through '27." — Byron Pollan (CFO)
Normalized margin and deposit beta
Q (Matthew Clark · Piper Sandler): He asked if 4.50% is a realistic long-term normalized margin and whether that is a 2027 target. He also asked the spot deposit rate at September 30 and what deposit beta to assume for future hikes, and separately asked about buyback appetite.
A: They said they have good visibility into 2027 but will wait to speak to 2028, and that a historical margin range is 4% to 4.5% and 4.5% is reachable over time though timing is uncertain. The spot deposit rate at September 30 was 1.20%, and deposit beta is expected to be in the 20% to 25% range, nearer 20% early in the cycle. On capital returns, management said they will review all options, including special dividends and share buybacks, as capital accumulates.
"I think of our margin in terms of a historical range, 4% to 4.5% is typically where we have been historically." — Byron Pollan (CFO)
Deposit strength, loan pipeline, asset sensitivity
Q (David Feaster · Raymond James): He asked what drove the strong deposit quarter, whether any markets showed notable strength, and how competition and marginal funding costs look. He also asked if deals are dropping out of the pipeline with higher rates and how the balance sheet's asset sensitivity is being managed.
A: They said the quarter showed broad-based deposit growth across products, divisions and geographies, with a notable increase in noninterest-bearing balances and seasonally strong results. They have not seen material deals fall out of the pipeline due to rates; projects may be slightly scaled back with more equity but originations remain solid. Management described the bank as modestly asset sensitive, expecting asset repricing and higher reinvestment yields to more than offset funding cost pressure, and they are reinvesting runoff cautiously into securities while preserving flexibility to fund loans.
"The real highlight this quarter was our growth in our noninterest-bearing balances." — Byron Pollan (CFO)
Quarterly margin lift and expense guide
Q (Andrew Terrell · Stephens): He asked whether the recent 10–12 basis point quarterly margin lifts could repeat in Q4. He also asked for a refresh on Q4 expense expectations and the path to a 54%–55% efficiency ratio.
A: They said deposit costs may drift up if the Fed is active, which could reduce the magnitude of quarterly margin lifts. On expenses, operating core expenses in Q3 were about $190.8 million (reported $191.9 million with adjustments) and $4.4 million of the quarter was higher performance-based compensation; they will stick with the $187 million to $192 million Q4 guide and expect to be toward the high end. Management is confident they can reach a 54% to 55% efficiency ratio in Q4.
"And we're going to stick with the guide of $187 million to $192 million in the fourth quarter, as I said back in July." — Ron Copher (CFO)
Production yields, deposit cost, reinvestment, fees, tax rate
Q (Kelly Motta · KBW): She asked to confirm the 20%–25% deposit beta applies to total deposits and asked where new loan production yields and incremental funding costs are. She also asked how they plan to reinvest securities cash flows, whether the $40 million in other fees is a run rate, and what the tax rate is.
A: They confirmed the 20% to 25% beta applies to total deposits. In Q3, production yields were 6.74%, and new deposit accounts are opening at about 2.25% to 2.5% interest cost. They plan to reinvest roughly the amount of securities runoff quarter-to-quarter, said the $40 million in other fees is a good run rate (with about $1 million of the Q3 decline nonrepeatable), and they expect a tax rate around 21% in Q4 and for the full year.
"In the third quarter, production yields were 6.74%." — Tom Dolan