In its recent quarterly earnings report, the bank revealed a notable uptick in its net interest margin, which grew to 3.04% on a tax-equivalent basis. This figure marks a 7 basis point improvement from the previous quarter's margin of 2.97% and a 45 basis point growth from the same quarter last year, which stood at 2.59%.
The financial institution also reported an increase in total deposits, which climbed to $20.634 billion. This reflects an $87.1 million rise, translating to a 2% annualized growth over the most recent quarter. Such performance highlights the bank's robust financial health and growing customer base.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Glacier Bancorp Inc (GBCI, Financial) is $53.83 with a high estimate of $55.00 and a low estimate of $50.00. The average target implies an upside of 26.31% from the current price of $42.62. More detailed estimate data can be found on the Glacier Bancorp Inc (GBCI) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Glacier Bancorp Inc's (GBCI, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Glacier Bancorp Inc (GBCI, Financial) in one year is $48.23, suggesting a upside of 13.16% from the current price of $42.62. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Glacier Bancorp Inc (GBCI) Summary page.
GBCI Key Business Developments
Release Date: January 24, 2025
- Diluted Earnings Per Share: $0.54, up 20% from the prior quarter and 10% from the prior year.
- Net Income: $61.8 million, up 21% from the prior quarter and 14% from the prior year.
- Net Interest Margin: 2.97%, up 14 basis points from the prior quarter and 41 basis points from the prior year.
- Net Interest Income: $191 million, up 6% from the prior quarter and 15% from the prior year.
- Loan Portfolio: $17.3 billion, increased by $81 million or 2% annualized during the current quarter.
- Loan Yield: 5.72%, up 3 basis points from the prior quarter and 38 basis points from the prior year.
- Total Deposits: $20.5 billion, decreased by $168 million or 1% from the prior quarter, increased by $618 million or 3% from the prior year.
- Noninterest Expense: $141 million, decreased by $3.7 million or 3% from the prior quarter.
- Noninterest Income: $31.5 million, decreased by $3.2 million or 9% from the prior quarter, increased by $684,000 or 2% from the prior year.
- Gain on Sale of Residential Loans: $3.9 million, decreased by $972,000 or 20% from the prior quarter, increased by $1.7 million or 76% from the prior year.
- Tangible Stockholders' Equity: $2.1 billion, decreased by $17.4 million or 1% from the prior quarter, increased by $118 million or 6% from the prior year.
- Quarterly Cash Dividend: $0.33 per share, declared in November 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Glacier Bancorp Inc (GBCI, Financial) reported a strong fourth quarter with a 20% increase in diluted earnings per share from the prior quarter.
- Net income for the current quarter increased by 21% from the prior quarter, showcasing robust financial performance.
- The net interest margin improved to 2.97%, marking an increase of 14 basis points from the previous quarter.
- The company successfully completed acquisitions, including the Rocky Mountain branches and Wheatland Bank, enhancing its market presence.
- The proposed acquisition of Bank of Idaho is expected to strategically expand GBCI's footprint in high-growth markets with minimal tangible book value dilution.
Negative Points
- Total deposits decreased by 1% from the prior quarter, indicating potential challenges in deposit growth.
- Noninterest income for the current quarter decreased by 9% over the prior quarter, reflecting a decline in this revenue stream.
- The gain on sale of residential loans decreased by 20% compared to the prior quarter, indicating a slowdown in this area.
- Tangible stockholders' equity decreased by 1% compared to the prior quarter, suggesting a slight decline in shareholder value.
- The company faces increased pricing competition in new loan originations, which could pressure margins.
