Glacier Bancorp Holds Q4 Expense Outlook, Sees 54% to 55% Efficiency Ratio

Glacier Bancorp, Inc. expects a 54% to 55% efficiency ratio in the fourth quarter while holding its expense range at $187 million to $192 million, setting a year-end benchmark for operating costs.

Chief Financial Officer Ron Copher reaffirmed the outlook on Oct. 23 and said expenses could approach the range’s upper end if discretionary spending resumes. Glacier set the range in July.

Third-quarter noninterest expense totaled $191.884 million, up from $186.700 million in the second quarter. The GAAP efficiency ratio was 56.08%, down from 56.65% in the second quarter. The non-GAAP operating efficiency ratio was 55.75%, compared with 56.21% in the prior quarter.

The GAAP ratio declined from 62.05% a year earlier. Glacier attributed the improvement to net interest income growing faster than noninterest expense. Third-quarter net income was $104.562 million, up 54% from a year earlier, and net interest income was $290 million.

Copher did not specify whether the fourth-quarter forecast refers to the GAAP efficiency ratio or the non-GAAP operating efficiency ratio. An efficiency ratio compares a bank’s expenses with its revenue.