Glacier Bancorp Reports Strong Q1 2025 Earnings, Expects Continued Margin Expansion
Glacier Bancorp, a leading regional bank holding company, has reported strong earnings for the first quarter of 2025. In its most recent conference call, Randy Chesler, President and CEO of Glacier Bancorp, highlighted the positive trend of margin expansion driven by lower deposit costs and higher loan yields, which continued in Q1.
Expense control was solid, with noninterest expense remaining flat to last year's first quarter. Noninterest income, on the other hand, increased 9% versus the same period a year ago, reaching $33 million. The company's credit portfolio continues to perform at near record levels, with an allowance for credit loss increasing to 1.22% of total loans from 1.19% in the previous quarter.
Glacier Bancorp's net interest margin (NIM) as a percentage of earning assets on a tax-equivalent basis reached 3.04%, representing a 7-basis-point increase from the prior quarter and a 45-basis-point increase from the same period a year ago. This marks the fifth consecutive quarter of NIM growth and is the highest level seen in two years.
The company's diluted earnings per share (EPS) for Q1 2025 reached $0.48, representing a 66% increase from last year's first-quarter EPS. Net income was $54.6 million, an increase of $21.9 million or 67% from the same period a year ago.
Total deposits reached $20.6 billion, increasing $87.1 million or 2% annualized during the quarter. Total loans decreased by $48 million to $17 billion due to accelerated payoffs. However, Glacier Bancorp remains optimistic about its loan growth outlook for the year and does not expect this trend to continue.
The company's tangible stockholders' equity reached $2.2 billion at the end of Q1 2025, increasing $67 million or 3% from the prior quarter and $147 million or 7% compared to the same period a year ago. Tangible book value per common share increased by $0.57 per share or 3% from the previous quarter and $1.28 per share or 7% from last year's first-quarter.
Glacier Bancorp has also made significant progress in its strategic expansion plans, having closed two transactions through acquisition in 2024, totaling approximately $1.2 billion in assets. The company has now received all regulatory approvals for the proposed acquisition of Bank of Idaho and expects to close this deal at the end of the month, marking a strategic expansion into high-growth markets.
