Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Investor Presentation (October 2022)
42 slides from Glacier Bancorp's investor presentation, Oct 31, 2022
Slide 1: Investor Presentation September 30, 2022
Investor Presentation September 30, 2022 Investor Slides
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain 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 management’s plans, objectives, expectations and intentio
Slide 3: Glacier Bancorp, Inc. 9/30/2022 Snapshot
Glacier Bancorp, Inc. 9/30/2022 Snapshot Ticker GBCI Total Assets $26.73 billion Gross Loans $14.85 billion Deposits $21.88 billion TCBV Per Share $15.73 Dividends $0.33 Stock Price $49.13 Market Cap $5.44 billion 2
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 3
Slide 5: Glacier is a "Company of Banks"
Glacier is a “Company of Banks” 4
Slide 6: Altabancorp Acquisition Announcement
Altabancorp Acquisition Announcement 5 • Largest community bank headquartered in Utah, with $3.5 billion in assets • Transaction is consistent with Glacier’s targeted financial metrics and focused M&A strategy • Solidifies and ensures Glacier’s continued leadership position in the Rocky Mountain Wes
Slide 7: Bank Divisions and Locations
6 WY ID UT AZ NV WA CO MT • 17 Bank Divisions • 222 Locations (as of 9/30/2022)
Slide 8: GBCI Geography: Target Banks
7 6/30/22 GBCI Geography Total chartered banks 281 Total target banks 201 Assets under $1B 172 Assets $1 – $3.5B 29
Slide 9: Solid Financial Results
Solid Financial Results —————————— @ Glacier Bancorp 8
Slide 10: Total Return 9/30/2017 – 9/30/2022
5 Year Total Return 9/30/2017 – 9/30/2022 9
Slide 11: Total Return 9/30/2021 – 9/30/2022
1 Year Total Return 9/30/2021 – 9/30/2022 10
Slide 12: Forbes Performance Ranking of America's Largest Banks
Forbes PERFORMANCE RANKING OF America’s 100 Largest Banks 11 Sept 30 Rank Company Name ROTCE (%) NPAs/ Assets (%) CET1 Ratio (%) Efficiency Ratio (%) Operating Revenue Growth (%) 2021 8 Glacier Bancorp Inc. 18.5 0.29 12.2 49 10.1 2020 3 Glacier Bancorp Inc. 16.0 0.33 12.0 51 21.0 2019 9 Glacier Banc
Slide 13: Reconciliation of 2017 Non-GAAP Measures to GAAP
Reconciliation of 2017 Non-GAAP Measures to GAAP 12 (Dollars in thousands, except per share data) December 31 2017 Earnings per share YTD (GAAP) 1.50$ Tax Act adjustment (GAAP) 0.25 Earnings per share YTD (non-GAAP) 1.75$ Return on assets (GAAP) 1.20% Tax Act adjustment (GAAP) 0.21% Return on assets
Slide 14: Diluted Earnings Per Share
13 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 $1.75* $2.17 $2.38 $2.81 $0.85 $0.61 $0.81 $0.69 $0.79 $0.72 $2.45 $2.02 • The decrease in third quarter 2022 EPS over the third quarter 2021 EPS includes: • $38.3 million decrease in PP
Slide 15: Return on Assets
1.00% 1.10% 1.20% 1.30% 1.40% 1.50% 1.60% 1.70% 1.80% 1.59% 1.41%* 1.64% 1.33% 1.57% 1.13% • ROA in the second quarter of 2022 was in the 55th♦ percentile among Glacier’s peer group Return on Assets *Non-GAAP (see reconciliation on slide 12) ♦BHCPR as of 6/30/2022 1.62% 14
Slide 16: Return on Tangible Equity
10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 19.00% 13.66%* 16.15% 16.85% 16.42% 15.49% 17.88% 16.02% • The Company’s historically high capital levels have made it more difficult to produce higher ROTE Return on Tangible Equity * Non-GAAP (see reconciliation on slide 12) 15
Slide 17: Net Interest Income / Margin
$100 $200 $300 $400 $500 $600 $700 $800 $345 $433 $503 $600 $663 $635* $781* 4.12% 4.21% 4.39% 4.09% 3.42% 3.52% 3.26% • Third quarter 2022 net interest income of $781 million increased $146 million, or 23%, over net interest income of $635 million for third quarter 2021 • Third quarter 2022 net int
Slide 18: Efficiency Ratio
44.0% 46.0% 48.0% 50.0% 52.0% 54.0% 56.0% 58.0% 60.0% 53.9% 54.7% 57.8% 50.0% 51.4% 48.9% 55.1% • Excluding acquisition-related expenses, the efficiency ratio would have been 52.39% for third quarter 2022 compared to 49.94% for third quarter 2021 • Higher efficiency ratio driven by: • Increase in no
Slide 19: Strong Balance Sheet
Strong Balance Sheet 18
Slide 20: Asset Trends
$9,706 $12,115 $13,684 $18,504 $25,941 $26,733 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 $26,000 $28,000 $30,000 • Total assets increased $792 million, or 3%, during the first nine months of 2022 • Total assets grew $7.4 billion, or 40%, in 2021, including $4.1 billion f
Slide 21: Capital Ratios Relative to Peers
0.00% 3.00% 6.00% 9.00% 12.00% 15.00% 18.00% Tier 1 Leverage CET1 Tier 1 RBC Total RBC 9.1% 11.9% 12.5% 14.4% 8.6% 12.2% 12.2% 13.9% Peers Glacier • Total risk-based capital ranks in the 45th percentile among Glacier’s peer group • Capacity to add $2.0 billion of assets and still maintain an 8% leve
Slide 22: Ample Liquidity of $17.5 Billion
Ample Liquidity of $17.5 Billion • Ready access to liquidity totaling $12.2 billion • $5.4 billion in available borrowing capacity o Fed Discount Window: $1.8 billion o FHLB: $2.9 billion o Correspondent banks: $0.7 billion • $6.4 billion of unpledged marketable securities • Cash of $0.4 billion • A
Slide 23: Deposit Trends
$7,580 $9,494 $10,776 $14,798 $21,337 $21,880 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 • During the first nine months of 2022, deposits increased $543 million, or 3% • Growth in the number of deposit accounts has also increased significantly the past several year
Slide 24: Deposit Composition
Non- Interest Bearing 38% NOW and DDA 25% Savings 14% MMDA 18% CDs 5% Wholesale 0% 9/30/2021 Non- Interest Bearing 38% NOW and DDA 25% Savings 15% MMDA 18% CDs 4% Wholesale 0% 9/30/2022 Deposit Composition 23
Slide 25: Non-Interest Bearing Deposits
$2,312 $3,001 $3,697 $5,455 $7,779 $8,294 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 • Non-interest bearing deposits increased $515 million, or 7%, during the first nine months of 2022 • Non-interest bearing deposits comprise 38% of total deposits Non-Interest Bearing Deposits (Dollars
Slide 26: Interest-Bearing Deposit Cost Relative to Peers
0.23% 0.22% 0.24% 0.15% 0.09% 0.10% 0.52% 0.81% 1.10% 0.53% 0.21% 0.20% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Glacier Peers • Total deposit costs have remained stable while Glacier’s peer group costs have experienced greater volatility • Core deposits are a competitive advantage and will be a ke
Slide 27: Loan Trends
$6,578 $8,288 $9,513 $11,123 $13,432 $14,851 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 • Gross loans increased $1.4 billion, or 11% annualized, during the first nine months of 2022 • Gross loans increased $2.3 billion, or 21%, during 2021 • Excluding PPP loa
Slide 28: Organic Loan Growth
$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $601 $728 $364 $1,158 $419 $171 $1,419 • Excluding PPP loans, organic loan growth for the first nine months of 2022 was $1.6 billion, or 16% annualized, compared to $171 million, or 2% annualized, for the first nine months of 2021 (Dollars in millio
Slide 29: Loan Composition
Residential Real Estate 7% CRE 61% Other Commercial 23% HELOC 6% Other Consumer 3% 9/30/2021 Residential Real Estate 9% CRE 65% Other Commercial 18% HELOC 5% Other Consumer 3% 9/30/2022 Loan Composition 28
Slide 30: 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% 9/30/2022 Geographic Loan Dispersion 29
Slide 31: Investment Portfolio Trends
$2,427 $2,870 $2,800 $5,528 $10,370 $9,512 $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 third quarter 2022 at 36% of total assets compared to 40% at the end of third quarter 2021 • Investments decreased $858 million, or 8%, during the
Slide 32: Investment Composition
US Gov't & Federal Agency 0% US Gov't Sponsored Enterprises 1% State & Local Gov'ts 19% Corporate Bonds 2% Residential MBS 65% Commercial MBS 13% 9/30/2021 US Gov't & Federal Agency 14% US Gov't Sponsored Enterprises 3% State & Local Gov'ts 22% Corporate Bonds 1% Residential MBS 48% Commercial MBS 1
Slide 33: Improved Credit Quality
Improved Credit Quality 32
Slide 34: NPAs to Bank Assets
0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.68% 0.47% 0.27% 0.19% 0.26% 0.24% 0.13% • NPAs decreased $32.6 million during the first nine months of 2022 to 0.13% of Bank assets compared to the $15.7 million increase in the first nine months of 2021 to 0.24% of Bank assets NPAs to Bank Ass
Slide 35: 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 (Dollars in millions) Other Key Model Inputs National Economic Assumptions (September 2022) CECL and Allowance for Credit Losses (AC
Slide 36: Provision for Credit Losses
-$10,000 -$5,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $10,824 $9,953 $57 $39,765 $23,076 -$4,880 $13,839 • Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will determine the
Slide 37: Net Charge-Offs
$0 $2,500 $5,000 $7,500 $10,000 $12,500 $10,828 $8,282 $6,806 $7,653 $2,329 $1,713 $5,847 • For the first nine months of 2022, net charge- offs as a percentage of total loans were 0.04% compared to 0.02% in the first nine months of 2021 Net Charge-Offs (Dollars in thousands) 36
Slide 38: ACL as a Percentage of Loans
1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 1.97% 1.58% 1.31% 1.42% 1.29% 1.36% 1.20% • ACL was in the 57th♦ percentile of Glacier’s peer group for second quarter 2022 • The ACL was 1.20% of loans at the end of third quarter 2022 compared to 1.36% at the end of third quarter 2021 • As credit trends change,
Slide 39: Shareholder Return
Shareholder Return > yw "ww
Slide 40: 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 September 30, 2022, Glacier’s dividend yield was 2.69% • The Company has declared 150 consecutive quarterly dividends • In 2021, the Company increased its quarterly dividend by $0.09, or
Slide 41: Long-Term Performance Since 1984
Annual Total Return * 15 .2 % Annual EPS Growth Rate 9 .8% Annual Dividend Growth Rate 12 .1 % * Reflects resul ts through 9 /30 /20 22 , assuming no reinvestment of dividends Compounded Rates • Strong consistent performance over the past 38 years • Long-term goal is to produce double digit dividend
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