Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Q2 2023 Earnings Presentation
49 slides from Glacier Bancorp's earnings presentation, Aug 22, 2023
Slide 1: Investor Presentation June 30, 2023
Investor Presentation June 30, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions
Slide 3: Glacier Bancorp, Inc. 6/30/2023 Snapshot
Glacier Bancorp, Inc. 6/30/2023 Snapshot Ticker GBCI Total Assets $27.53 billion Gross Loans $15.95 billion Deposits $20.01 billion TCBV Per Share $17.18 Dividends $0.33 Stock Price $31.17 Market Cap $3.46 billion 3
Slide 4: Differentiated Bank Model
Differentiated Bank Model • Genuine community banking model • Backed by resources and support of Glacier Bancorp • Strategy of growth through acquisitions and organically 4
Slide 5: Glacier is a "Company of Banks"
Glacier is a “Company of Banks” 5
Slide 6: Community Financial Group, Inc. Acquisition Announcement
Community Financial Group, Inc. Acquisition Announcement Pro Forma Washington Branch Footprint• Acquisition is consistent with Glacier’s long-term strategy of buying good banks in good markets with good people • Establishes a market-leading Eastern Washington franchise • A new bank division, Wheatla
Slide 7: GBCI Acquisition History – Last 10 Years
$7.9 $8.3 $9.1 $9.5 $9.7 $12.1 $13.7 $18.5 $25.9 $26.6 $28.3 $- $5 $10 $15 $20 $25 $30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 6/30/2023* Total Assets ($B) Acquisitions GBCI Acquisition History – Last 10 Years 5 • Long history of adding high quality community banks that fit the Glacier ban
Slide 8: Bank Divisions and Locations
WY ID UT AZ NV WA CO MT • 17 Bank Divisions • 222 Locations (as of 6/30/2023) 8
Slide 9: GBCI Geography: Target Banks
6/30/23 GBCI Geography Total chartered banks 269 Total target banks 205 Assets under $1B 169 Assets $1 – $3.5B 36 9
Slide 10: Solid Financial Results
Solid Financial Results @ Glacier Bancorp 10
Slide 11: 10 Year Total Return 6/30/2013 – 6/30/2023
10 Year Total Return 6/30/2013 – 6/30/2023 11
Slide 12: 1 Year Total Return 6/30/2022 – 6/30/2023
1 Year Total Return 6/30/2022 – 6/30/2023 12
Slide 13: A Definitive Ranking of Publicly Traded Banks
A Definitive Ranking of Publicly Traded Banks 13 Every publicly traded bank ranked by all-time total shareholder return * Includes both dividends paid and share price appreciation ** Normalized to account for the time period that each bank has been publicly traded GBCI shares have been publicly trad
Slide 14: Forbes Best Banks
Forbes Best Banks Ranked #1 in Montana Ranked #18 in America Eight consecutive years (2016-2023) in Top 20 Named as a World’s Best Bank Four consecutive years (2020-2023) 14
Slide 15: Diluted Earnings Per Share
15 Diluted Earnings Per Share $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 $2.75 $3.00 $3.25 $2.17 $2.38 $2.74 $0.61 $0.55 $0.69 $0.50 $2.86 • The decrease in second quarter 2023 EPS over second quarter 2022 EPS was driven primarily by the significant increase in funding costs f
Slide 16: Return on Assets
0.70% 0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 1.40% 1.50% 1.60% 1.70% 1.64% 1.59% 1.62% 1.73% 1.11% 0.87% • ROA in the first quarter of 2023 was in the 35th♦ percentile among Glacier’s peer group 16 Return on Assets ♦BHCPR as of 3/31/2023 1.33%
Slide 17: Return on Tangible Equity
10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 16.42% 16.85% 15.49% 16.15% 16.59% 15.36% 12.75% • The Company’s historically high capital levels have made it more difficult to produce higher ROTE. 17 Return on Tangible Equity
Slide 18: Net Interest Income / Margin
$100 $200 $300 $400 $500 $600 $700 $800 $900 $433 $503 $600 $663 $788 $764 $722 4.21% 4.39% 4.09% 3.42% 3.27% 3.21% 2.91% • Net interest income of $722 million for the first half of 2023 decreased $42 million, or 5.49%, over net interest income of $764 million for the first half of 2022 • Net intere
Slide 19: Efficiency Ratio
44.0% 46.0% 48.0% 50.0% 52.0% 54.0% 56.0% 58.0% 60.0% 62.0% 64.0% 54.7% 57.8% 50.0% 51.4% 54.6% 55.7% 62.7% • The efficiency ratio for the second quarter of 2023 was 62.7% compared to 55.7% for second quarter of 2022 and was primarily due to the increase in interest expense in the second quarter of
Slide 20: Strong Balance Sheet
Strong Balance Sheet 20
Slide 21: Asset Trends
$12,115 $13,684 $18,504 $25,941 $26,635 $27,528 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 $26,000 $28,000 $30,000 • Total assets organically increased $892 million, or 3%, during the first six months of 2023 • Total assets grew $695 million, or 3%, in 2022 • Increased cash posi
Slide 22: CET 1 Capital Relative to Peers
11.00% 12.00% 13.00% CET1 11.3% 12.4% Peers Glacier • Regulatory capital CET1 ratio well above peer median 22 CET 1 Capital Relative to Peers♦ ♦ 2023 Proxy Compensation Peer Group median as of 6/30/23
Slide 23: Ample Liquidity of $15.2 Billion at June 30, 2023
Ample Liquidity of $15.2 Billion at June 30, 2023 • Ready access to liquidity totaling $11.0 billion • $7.5 billion in available borrowing capacity o Federal Reserve: $2.3 billion o FHLB: $4.4 billion o Correspondent banks: $0.8 billion • $2.5 billion of unpledged marketable securities • Cash of $1.
Slide 24: Strong Core Deposit Base
Strong Core Deposit Base • Our community banking model is customer relationship driven • Uninsured deposits, excluding collateralized public deposits and cash held at the holding company, are 23% of total deposits • 31% of uninsured deposits are with customers that also have a loan relationship with
Slide 25: Strong Core Deposit Base - Continued
Strong Core Deposit Base - Continued • Demand and savings deposit characteristics • Deposit Granularity • Retail: 641,000 accounts ; average balance = $13,000 • Commercial: 156,000 accounts ; average balance = $61,000 • Relationship Length • Weighted average relationship age is 15 years • Compositio
Slide 26: Deposit Trends
$9,494 $10,776 $14,798 $21,337 $20,607 $20,008 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 • During the second quarter of 2023, deposits decreased $140 million, or 0.7%, compared to $458 million, or 2%, in the first quarter of 2023 • In April 2023, seasonal deposit outflow
Slide 27: Deposit Composition
Non- Interest Bearing 37% NOW and DDA 25% Savings 15% MMDA 19% CDs 4% Wholesale 0% 6/30/2022 Non- Interest Bearing 32% NOW and DDA 26% Savings 14% MMDA 16% CDs 10% Wholesale 2% 6/30/2023 27 Deposit Composition
Slide 28: Non-Interest Bearing Deposits
$3,001 $3,697 $5,455 $7,779 $7,691 $6,458 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 • During the second quarter of 2023, the pace of non-interest bearing deposit outflows slowed • Non-interest bearing deposits decreased to 33% of total core deposits at June 30, 2023 compared to 37% at
Slide 29: Interest-Bearing Deposit Cost Relative to Peers
0.22% 0.24% 0.15% 0.09% 0.11% 0.39% 0.81% 1.10% 0.53% 0.21% 0.61% 1.80% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% Glacier Peers • Interest-bearing deposit cost increased to 0.62% at June 30, 2023 due to market dynamics and the competitive rate environment. • Total deposit cos
Slide 30: Loan Trends
$8,288 $9,513 $11,123 $13,432 $15,247 $15,955 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 • Gross loans increased $708 million, or 9% annualized, during the first six months of 2023 with the largest increase in commercial real estate of $424 million, or 9% an
Slide 31: Organic Loan Growth
$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $728 $364 $1,158 $419 $1,815 $968 $708 • Organic loan growth for the first six months of 2023 was $708 million, or 9% annualized, compared to $968 million, or 15% annualized, for the first six months of 2022 31 Organic Loan Growth (Dol
Slide 32: Loan Composition
Residential Real Estate 9% CRE 65% Other Commercial 19% HELOC 5% Other Consumer 2% 6/30/2022 Residential Real Estate 10% CRE 64% Other Commercial 18% HELOC 5% Other Consumer 3% 6/30/2023 32 Loan Composition
Slide 33: Geographic Loan Dispersion
Montana 62% Idaho 22% Utah 2% Washington 1% Wyoming 9% Colorado 4% 12/31/2009 Montana 34% Idaho 13%Utah 16% Washington 5% Wyoming 8% Colorado 10% Arizona 9% Nevada 5% 6/30/2023 33 Geographic Loan Dispersion
Slide 34: Term CRE Portfolio Diversified and Low Risk
Term CRE Portfolio Diversified and Low Risk Portfolio • Total portfolio $6.6 billion (42% of total portfolio) • Non-owner portfolio $3.7 billion (23% of total portfolio) • $850 thousand average loan balance • 59% average LTV • 0.15% past due rate • 0.10% non-performing • $189 million non-recourse (2
Slide 35: Office CRE
Office CRE • $681 thousand average loan balance • 59% average LTV • 0.57% past due • 0.03% non-performing • 98% of loans have recourse through guaranties • Includes $171 million in medical office • 9% of office portfolio matures prior to 2026 • Limited exposure to loans above $10 million (1% of tota
Slide 36: Office CRE - Continued
Office CRE - Continued Denver $50 million Phoenix $21 million Salt Lake City $44 million Suburban/Rural $1.38 billion • Highly diversified portfolio across 8 states primarily in rural markets • Portfolio in Denver, Phoenix, and Salt Lake City represent 8% of total office (0.7% of total loans) • $12
Slide 37: Investment Portfolio Trends
$2,870 $2,800 $5,528 $10,370 $9,022 $8,608 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 • Investment securities ended second quarter 2023 at 31% of total assets compared to 37% at the end of second quarter 2022 • Investments decreased $414 million, or 5%, during th
Slide 38: Investment Composition
US Gov't & Federal Agency 13% US Gov't Sponsored Enterprises 3% State & Local Gov'ts 21% Corporate Bonds 1% Residential MBS 50% Commercial MBS 12% 6/30/2022 US Gov't & Federal Agency 15% US Gov't Sponsored Enterprises 3% State & Local Gov'ts 21% Corporate Bonds 0% Residential MBS 48% Commercial MBS
Slide 39: Investment Composition – Agency Commercial MBS
• All Commercial MBS securities are guaranteed by Fannie Mae or Freddie Mac. • Underlying collateral consists of multi-family housing properties. Investment Composition – Agency Commercial MBS 39 11% 89% 6/30/2022 Tax-Exempt Taxable 13% 87% 6/30/2023 Tax-Exempt Taxable
Slide 40: Improved Credit Quality
Improved Credit Quality 40
Slide 41: NPAs to Bank Assets
0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.47% 0.27% 0.26% 0.12% 0.16% 0.12% • NPAs decreased $720 thousand during the first six months of 2023 to 0.12% of Bank assets compared to the $23.7 million decrease in the first six months of 2022 to 0.16% of Bank assets 41 NPAs to Bank Assets 0.19%
Slide 42: CECL and Allowance for Credit Losses (ACL)
CECL and Allowance for Credit Losses (ACL) • Commercial Asset Quality Ratings • Consumer Loan Past Due Status • Additional Qualitative Adjustments • Prepayment Speed Assumptions • Historical Loss Period Capture 42 (Dollars in millions) Other Key Model Inputs National Economic Assumptions (June 2023)
Slide 43: Provision For Credit Losses
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $9,953 $57 $39,765 $23,076 $19,963 $5,498 $8,243 • Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will determine the future level of cre
Slide 44: Net Charge-Offs
$0 $2,500 $5,000 $7,500 $10,000 $8,282 $6,806 $7,653 $2,329 $7,815 $2,693 $4,412 • For the first six months of 2023, net charge-offs as a percentage of total loans were 0.03% compared to 0.02% in first six months of 2022 44 Net Charge-Offs (Dollars in thousands)
Slide 45: ACL as a Percentage of Loans
1.00% 1.25% 1.50% 1.75% 1.58% 1.31% 1.42% 1.29% 1.20% 1.20%1.19% • ACL was in the 55th♦ percentile of Glacier’s peer group for first quarter of 2023 • The ACL was 1.19% of loans at the end of second quarter of 2023 compared to 1.20% at the end of second quarter of 2022 • As credit trends change, exp
Slide 46: Shareholder Return
Shareholder Return SS @ Glacier Bancorp 6
Slide 47: Dividends Declared
$0.50 $0.55 $0.60 $0.65 $0.70 $0.75 $0.80 $0.85 $0.90 $0.95 $1.00 $1.05 $1.10 $1.15 $1.20 $1.25 $1.30 $1.35 • At June 30, 2023, Glacier’s dividend yield was 4.23% • The Company has declared 153 consecutive quarterly dividends • In 2022, the Company increased its quarterly dividend by $0.05, or 3.9%,
Slide 48: Long-Term Performance Since 1984
Annual Total Return * 14.0% Annual EPS Growth Rate 7.2% Annual Dividend Growth Rate 11.9% * Reflects results through 6/30/2023, assuming no reinvestment of dividends Compounded Rates • Strong consistent performance over the past 39 years • Long-term goal is to produce double digit dividend growth 48
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