Glacier's Net Interest Margin Extends Eleven-Quarter Expansion

The Tip Desk · October 27, 2026 · 4 min read

Tax-equivalent net interest margin reached 4.01% as net interest income rose 5% to $290 million and net income hit a record $104.6 million.

Glacier Bancorp, Inc. (GBCI), the Montana-based regional bank, reported net interest income of $290 million for the three months ended September 30, 2026, up $13.5 million, or 5 percent, from $276 million in the prior quarter, after a $7.8 million, or 3 percent, sequential increase in the second quarter.

The tax-equivalent net interest margin expanded 11 basis points to 4.01 percent from 3.90 percent, the eleventh consecutive quarterly expansion, after a 10 basis point expansion in the prior quarter. The company said the margin move was primarily driven by higher earning-asset yields and lower deposit costs. Earning-asset yield rose 9 basis points to 5.23 percent from 5.14 percent, after a 3 basis point increase in the prior quarter. Core deposit cost, including non-interest bearing deposits, fell 1 basis point to 1.17 percent from 1.18 percent; total funding cost, including non-interest bearing deposits, fell 1 basis point to 1.32 percent from 1.33 percent.

Interest income of $380 million increased $14.8 million, or 4 percent, from the prior quarter and was primarily driven by both increased loans and higher rates on the loan portfolio, the company said. The loan yield rose 10 basis points to 6.22 percent from 6.12 percent, after a 4 basis point increase in the prior quarter. Interest expense of $90.1 million increased $1.3 million, or 1 percent, from the prior quarter.

The loan portfolio of $21.620 billion at September 30, 2026, increased $256 million, or 5 percent annualized, from the prior quarter, after a $330 million, or 6 percent annualized, sequential increase in the second quarter. Commercial real estate loans rose $277 million to $14.432 billion; other commercial, residential real estate, home equity and other consumer loans were roughly unchanged or slightly lower sequentially. Excluding the Guaranty acquisition on October 1, 2025, the loan portfolio increased $726 million, or 4 percent, from the prior year third quarter.

Total deposits of $25.273 billion increased $619 million, or 10 percent annualized, from the prior quarter, after average deposits rose $113 million, or 2 percent annualized, in the second quarter. The company said a temporary quarter-end deposit is expected to largely exit in the fourth quarter; excluding it, total deposits rose $308 million, or 5 percent annualized. Non-interest bearing deposits of $7.702 billion increased $279 million, or 15 percent annualized, from the prior quarter; excluding the temporary deposit, they rose $197 million, or 11 percent annualized. Non-interest bearing deposits were 30 percent of total deposits at both September 30 and June 30, 2026.

Net income was a record $104.6 million, up $6.7 million, or 7 percent, from $97.9 million in the prior quarter and $36.7 million, or 54 percent, from $67.9 million a year earlier. Diluted earnings were $0.80 a share, up $0.05, or 7 percent, from $0.75 in the prior quarter. The quarter included $1.9 million of compensation from acquisition-related employment agreements and $844 thousand of gains from the sale of former branch facilities and disposal of fixed assets. Operating diluted earnings were $0.81 a share.

Non-interest income was $39.9 million, down $1.2 million from $41.1 million in the prior quarter, as other income fell $1.8 million to $3.3 million and gain on sale of loans declined $0.3 million to $4.8 million, while deposit service charges and other fees rose $0.8 million to $17.2 million. The efficiency ratio improved to 56.08 percent from 56.65 percent in the prior quarter.

Net charge-offs were $6.0 million, including $3.5 million of deposit overdraft net charge-offs and $2.5 million of net loan charge-offs, compared with $5.9 million in the prior quarter. Provision for credit losses on loans was $5.6 million versus $10.1 million in the prior quarter; total provision including unfunded commitments was $5.1 million. Non-performing assets of $90.6 million decreased $1.2 million, or 1 percent, from the prior quarter; non-accrual loans fell to $68.2 million from $74.4 million. Early-stage delinquencies of $58.1 million decreased $7.3 million from the prior quarter, to 0.27 percent of loans from 0.31 percent. The allowance for credit losses on loans was 1.20 percent of total loans versus 1.22 percent at June 30.

The board declared a quarterly cash dividend of $0.35 a share, up $0.02, or 6 percent, from $0.33 in the prior quarter, the 166th consecutive regular dividend. Tangible book value per common share was $22.05, up $0.24, or 1 percent, from the prior quarter.

President and Chief Executive Officer Randy Chesler said the company is well positioned to return to historical levels of performance as continued balance-sheet repricing drives improved profitability and the franchise continues to grow.