Credit quality remains strong with nonperforming assets at 0.17% of total assets and net charge-offs of $1.6 million; allowance for credit losses at 1.22% of loans.
Declared 161st consecutive quarterly dividend of $0.33 per share.
Deposits grew to $21.6 billion, up 5% quarter-over-quarter, with noninterest-bearing deposits increasing 8% and representing 30% of total deposits.
Efficiency ratio improved to 62.08%, down from 65.49% in prior quarter and 67.97% a year ago.
Glacier Bancorp reported net income of $52.8 million for Q2 2025, or $0.45 per diluted share, reflecting an 18% increase in net income and a 15% increase in earnings per share compared to the same quarter last year.
Loan portfolio grew $1.3 billion to $18.5 billion, an 8% increase from the prior quarter with $239 million or 6% annualized in organic growth.
Loan yield increased to 5.86%, up 9 basis points from prior quarter and 28 basis points year-over-year.
Net interest income was $208 million, up 9% from the prior quarter and 25% year-over-year, driven by higher average loan balances, improved loan yields, and declining funding costs.
Net interest margin expanded to 3.21%, up 17 basis points from Q1 and 53 basis points year-over-year, marking six consecutive quarters of margin expansion.
Noninterest expense was $155 million, up 3% from prior quarter, including $3.2 million in acquisition-related costs; compensation and benefits rose due to increased headcount and merit increases.
Noninterest income totaled $32.9 million, up slightly from Q1 and 2% year-over-year; service charges and fees increased 8%.
Provision for credit loss was $20.3 million, including $16.7 million related to Bank of Idaho acquisition; core provision was $3.6 million excluding acquisition impact.
Tangible book value per share increased to $19.79, up 8% year-over-year.
Total funding cost declined to 1.63%, down 5 basis points from prior quarter; core deposit costs remained stable at 1.25%.
Adjusted operating income was $378 million, flat from prior quarter, driven by lower compensation expenses offset by Western outflows and lower average AUM.
Assets under management ended the quarter at $1.61 trillion, increased from the prior quarter due to positive markets and strengthening flows, partially offset by long-term outflows at Western Asset Management.
Equity net outflows were $645 million, impacted by market volatility affecting growth strategies; positive net flows into large cap value, international, and emerging market strategies.
Fixed income net outflows improved to $1.3 billion; excluding Western, fixed income net inflows were $3.5 billion, driven by Franklin Templeton Fixed Income and Brandywine Global.
Institutional pipeline of 1 but unfunded mandates rose by net $4 billion to a record $24.4 billion, including $14.8 billion in new wins across all asset classes and multiple regions.
Long-term net outflows totaled $9.3 billion, an improvement from the prior quarter's $26.2 billion outflows; excluding Western Asset Management, long-term net inflows were $7.8 billion this quarter.
Multi-asset and alternatives generated combined $4.3 billion in positive net flows; multi-asset flows have been positive for 16 consecutive quarters.
Over half of mutual fund AUM outperformed peer median across 3-, 5-, and 10-year periods; mutual fund investment performance increased in 3-, 5-, and 10-year periods but declined in 1-year period due to a large yield fund.
Western net outflows moderated to the lowest since September 2024; money market balances grew with cash management net inflows for 4 of the last 5 quarters, increasing cash management AUM to $72 billion.
Dafinchi