Glacier Bancorp To Pay Special Dividend; Street Sees Downside Risk

Glacier Bancorp has declared a special cash dividend of $0.15 a share. The commercial banking company will pay the dividend on Jan. 19 to shareholders of record date as of Jan. 8.

Glacier Bancorp (GBCI) said that it “has declared 143 consecutive quarterly dividends and has increased the dividend 46 times.”

The move comes after the company on Dec. 17 paid a regular dividend of $0.30 per share, which translates into an annual dividend of $1.20 per share with a dividend yield of 2.64%.

Glacier Bancorp reported upbeat 3Q results in October, as its earnings of $0.81 jumped 42.1% year-over-year and beat the Street’s estimates of $0.63 per share. The company’s core deposits organically increased 26% year-over-year, while non-interest bearing deposits grew 41%. (See GBCI stock analysis on TipRanks).

On Nov. 16, Raymond James analyst David Feaster maintained a Hold rating on the stock. The analyst said, “While excess liquidity continues to weigh on the NIM [net interest margin] in the short-run, more important is the bank’s ability to drive NII [net interest income] growth ex-PPP [paycheck protection program], and improving pre-tax, pre-provision earnings ex-PPP.”

He added that “as a proven acquirer and the acquirer of choice in most of its markets, we expect the bank to remain active in M&A near-term.”

Overall, the rest of the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 1 Buy and 2 Holds. The average price target stands at $43, which implies downside potential of about 5.5% to current levels. Shares were down 1.1% year-to-date.

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