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1. Company Snapshot

1.a. Company Description

Glacier Bancorp, Inc.operates as the bank holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States.It offers non-interest bearing deposit and interest bearing deposit accounts, such as negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposit, negotiated-rate jumbo certificates, and individual retirement accounts.


The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans.In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; paycheck protection program loans; home equity loans consisting of junior lien mortgages, and first and junior lien lines of credit secured by owner-occupied 1-4 family residences; and agriculture loans.Further, the company provides mortgage origination and loan servicing services.


It has 224 locations, including 188 branches and 36 loan or administration offices in 75 counties within 8 states comprising Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada.The company was founded in 1955 and is headquartered in Kalispell, Montana.

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1.b. Last Insights on GBCI

Glacier Bancorp's recent performance was negatively impacted by its Q2 earnings miss, with quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.47 per share. Although Q3 earnings and revenues surpassed estimates, with earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.61 per share, investors may be concerned about the company's ability to maintain growth. The company's high valuation, trading at a premium of about 20x forward earnings, may also be a concern. Additionally, Vanguard Personalized Indexing Management LLC reduced its holdings in Glacier Bancorp by 7.2% during the quarter.

1.c. Company Highlights

2. Glacier Bancorp's Q3 Earnings Shine with Strong Net Income and Margin Expansion

Glacier Bancorp, Inc. reported a net income of $67.9 million or $0.62 per diluted share for the third quarter, beating analyst estimates of $0.61. The company's pretax pre-provision net revenues increased 45% to $250 million for the first nine months of the year. Net interest income was $225 million, up 9% from the prior quarter and 25% from the same quarter last year. The net interest margin expanded to 3.39%, up 18 basis points from the prior quarter and 56 basis points year over year, marking the seventh consecutive quarter of margin expansion. The loan yield was 5.97%, up 11 basis points from the prior quarter. Byron Pollan stated that they anticipate growing their margin an additional 18 to 20 basis points in the fourth quarter.

Publication Date: Oct -27

📋 Highlights
  • Net Income Growth:: Q3 net income rose 29% QoQ to $67.9M ($0.57/share), up 33% YoY.
  • Loan Portfolio Expansion:: Loan portfolio grew 6% annualized to $18.8B, driven by commercial real estate.
  • Deposits Surge:: Total deposits hit $22B (+4% annualized), with non-interest-bearing deposits at 31% (up 5% annualized).
  • Margin Expansion:: Net interest margin expanded to 3.39% (up 18 bps QoQ; 56 bps YoY), seventh consecutive quarter of growth.
  • Efficiency and Value:: Efficiency ratio held at 62%, tangible book value per share rose 8% YoY to $20.46.

Loan Growth and Deposit Trends

The loan portfolio grew 6% annualized to $18.8 billion, with commercial real estate driving loan growth. Deposits reached $22 billion, up 4% annualized, with non-interest-bearing deposits increasing 5% annualized and representing 31% of total deposits. Tom Dolan noted that loan growth has been solid, with a consistent pipeline and build-back, and that competition is geographic-specific, with more pricing competition in larger markets.

Credit Quality and Risk Management

Credit quality remains strong, with nonperforming assets at 0.19% of total assets and net charge-offs at three basis points of loans. The only industry showing outsized risk is the ag sector, due to depressed grain and hay prices. The company has processes in place to ensure borrowers are doing what they're supposed to be doing, including knowing their customers, being in control of relationships, and having credit administration functions in each division.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of 1.44 and a Dividend Yield of 3.01%, Glacier Bancorp's stock appears reasonably valued. Analysts estimate next year's revenue growth at 25.8%. The company's guidance for the fourth quarter is between $185 million to $189 million, which doesn't incorporate much in terms of cost saves from the Guaranty acquisition.

Outlook and Merger Integration

The company's focus is on delivering a flawless conversion in 2026 and ensuring happy employees and satisfied customers. Randall Chesler mentioned that Guaranty Bank and Trust was a great cultural fit and that they are excited about the long-term opportunities in Texas. The company is modeling a 20% reduction in non-interest expense, with 50% achieved in 2026 and the other 50% in 2027.

3. NewsRoom

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Glacier Bancorp, Inc. $GBCI Shares Sold by Fisher Asset Management LLC

Dec -03

Source: defenseworld.net

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Critical Comparison: Glacier Bancorp (NYSE:GBCI) and Cathay General Bancorp (NASDAQ:CATY)

Dec -02

Source: defenseworld.net

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Creative Planning Buys 7,381 Shares of Glacier Bancorp, Inc. $GBCI

Nov -24

Source: defenseworld.net

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Glacier Bancorp, Inc. Declares Quarterly Dividend

Nov -12

Source: globenewswire.com

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World Investment Advisors Invests $257,000 in Glacier Bancorp, Inc. $GBCI

Nov -05

Source: defenseworld.net

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Hanmi Financial (NASDAQ:HAFC) vs. Glacier Bancorp (NYSE:GBCI) Financial Review

Oct -31

Source: defenseworld.net

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Glacier Bancorp Seems Fairly Valued Considering Its M&A Strategy

Oct -22

Source: seekingalpha.com

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Vanguard Personalized Indexing Management LLC Has $766,000 Position in Glacier Bancorp, Inc. $GBCI

Oct -21

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.00%)

6. Segments

Banking and Related Activities

Expected Growth: 13%

Glacier Bancorp's 13% growth in Banking and Related Activities is driven by strong loan growth, fueled by a robust economy and increasing demand for commercial and residential loans. Additionally, the company's strategic acquisitions, expanded branch network, and enhanced digital banking capabilities have contributed to the growth. Furthermore, a favorable interest rate environment and effective cost management have also supported the segment's growth.

7. Detailed Products

Personal Banking

Glacier Bancorp offers a range of personal banking services, including checking and savings accounts, credit cards, personal loans, and home loans.

Business Banking

Glacier Bancorp provides business banking services, including commercial loans, lines of credit, cash management, and treasury management solutions.

Wealth Management

Glacier Bancorp offers wealth management services, including investment management, financial planning, and trust services.

Mortgage Lending

Glacier Bancorp provides mortgage lending services, including residential and commercial mortgage loans.

Treasury Management

Glacier Bancorp offers treasury management services, including cash management, wire transfers, and account reconciliation.

Online Banking

Glacier Bancorp provides online banking services, including online bill pay, mobile banking, and account access.

8. Glacier Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Glacier Bancorp, Inc. operates in a highly regulated industry, which limits the threat of substitutes. However, the rise of fintech companies and digital banking platforms poses a moderate threat to traditional banking services.

Bargaining Power Of Customers

Glacier Bancorp, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and customer loyalty programs further mitigate this threat.

Bargaining Power Of Suppliers

Glacier Bancorp, Inc. has a strong financial position, which gives it bargaining power over its suppliers. The company's suppliers are also diversified, reducing their bargaining power.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements. This limits the threat of new entrants and gives Glacier Bancorp, Inc. a competitive advantage.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Glacier Bancorp, Inc. faces intense rivalry from other banks and financial institutions, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 59.42%
Debt Cost 3.95%
Equity Weight 40.58%
Equity Cost 7.95%
WACC 5.57%
Leverage 146.45%

11. Quality Control: Glacier Bancorp, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Commerce Bancshares

A-Score: 6.1/10

Value: 5.2

Growth: 5.7

Quality: 6.8

Yield: 4.0

Momentum: 6.0

Volatility: 9.0

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Third Federal

A-Score: 5.7/10

Value: 1.5

Growth: 4.8

Quality: 3.4

Yield: 10.0

Momentum: 5.0

Volatility: 9.7

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Community Bank System

A-Score: 5.7/10

Value: 4.9

Growth: 5.0

Quality: 6.5

Yield: 6.0

Momentum: 4.0

Volatility: 7.7

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Glacier Bancorp

A-Score: 5.5/10

Value: 4.3

Growth: 3.9

Quality: 7.4

Yield: 6.0

Momentum: 5.0

Volatility: 6.3

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First Financial Bankshares

A-Score: 5.4/10

Value: 3.9

Growth: 5.8

Quality: 8.1

Yield: 4.0

Momentum: 3.0

Volatility: 7.7

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ServisFirst Bank

A-Score: 5.2/10

Value: 4.2

Growth: 7.1

Quality: 6.4

Yield: 3.0

Momentum: 4.0

Volatility: 6.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.29$

Current Price

42.29$

Potential

-0.00%

Expected Cash-Flows