Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Investor Presentation (August 2024)
49 slides from Glacier Bancorp's investor presentation, Aug 14, 2024
Slide 1: Investor Presentation June 30, 2024
Investor Presentation June 30, 2024
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. 6/30/2024 Snapshot
Glacier Bancorp, Inc. 6/30/2024 Snapshot Ticker GBCI Total Assets $27.81 billion Gross Loans $16.85 billion Deposits $20.10 billion TCBV Per Share $18.26 Dividends $0.33 Stock Price $37.32 Market Cap $4.23 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: Acquisition - Community Financial Group, Inc.
Acquisition - Community Financial Group, Inc. • A new bank division, Wheatland Bank, was formed upon combining with the North Cascades Bank division • Established a market-leading Eastern Washington franchise • The acquisition was consistent with Glacier’s long-term strategy of buying good banks in
Slide 7: Acquisition - Community Financial Group, Inc.
Acquisition - Community Financial Group, Inc. 7 * Excludes $2.34 million of Loans Held for Sale Total assets 777,659 Cash and cash equivalents 31,674 Debt securities 187,183 Loans receivable * 450,403 Non-interest bearing deposits 277,651 Interest bearing deposits 339,304 Borrowings 58,500 Core Depo
Slide 8: Acquisition - Six Montana Branches of HTLF Bank
Acquisition - Six Montana Branches of HTLF Bank 8 • On July 19, 2024, Glacier Bank completed the acquisition of six Montana branch locations of the Rocky Mountain Bank division of HTLF Bank, a wholly owned subsidiary of Heartland Financial USA, Inc. • The six branches Glacier Bank will acquire are l
Slide 9: Bank Divisions and Locations
WY ID UT AZ NV WA CO MT • 17 Bank Divisions • 231 Locations (as of 6/30/2024) 9
Slide 10: GBCI Acquisition History – 2013 through 6/30/2024
$7.9 $8.3 $9.1 $9.5 $9.7 $12.1 $13.7 $18.5 $25.9 $26.6 $27.7 $28.2 $- $5 $10 $15 $20 $25 $30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 6/30/2024* Total Assets ($B) Acquisitions July 2024 Six Montana Branches GBCI Acquisition History – 2013 through 6/30/2024 10 • Long history of adding h
Slide 11: GBCI Geography
6/30/24 GBCI Geography Total chartered banks 258 Total target banks 198 Assets under $1B 162 Assets $1 – $3.5B 36 11
Slide 12: Solid Financial Results
Solid Financial Results @® Glacier Bancorp 12
Slide 13: 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 $2.38 $2.81 $2.01 $0.55 $0.29 $0.50 $0.39 $2.74 $1.05 • The decrease in second quarter 2024 EPS over second quarter 2023 EPS was driven primarily by the significant increase in funding c
Slide 14: Return on Assets
0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 1.62%1.64% 1.33% 0.81% 0.87% 0.56% • ROA in the first quarter of 2024 was in the 15th♦ percentile among Glacier’s peer group 14 Return on Assets ♦BHCPR as of 3/31/2024 1.15%
Slide 15: Return on Tangible Equity
4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 16.15% 15.49% 16.59%16.85% 12.14% 12.75% 8.04% • The Company’s historically high capital levels have made it more difficult to produce higher ROTE. 15 Return on Tangible Equity
Slide 16: Net Interest Income / Margin
$100 $200 $300 $400 $500 $600 $700 $800 $900 $503 $600 $663 $788 $692 $722 $670 4.39% 4.09% 3.42% 3.27% 2.73% YTD 2.91% YTD 2.64%Q2 2.74% Q1 3.08% Q1 2.59% • Net interest income of $670 million, annualized, for the first half of 2024 decreased $53 million, or 7.30%, over net interest income of $722
Slide 17: Efficiency Ratio
38.0% 42.0% 46.0% 50.0% 54.0% 58.0% 62.0% 66.0% 70.0% 74.0% 78.0% 57.8% 50.0% 51.4% 54.6% 62.9% YTD 61.5% YTD 71.2% • The efficiency ratio for the first half of 2024 was 71.2% compared to 61.5% for the first half of 2023 and was primarily due to the increase in interest expense in the first six mont
Slide 18: Strong Balance Sheet
Strong Balance Sheet 18
Slide 19: Asset Trends
$13,864 $18,504 $25,941 $26,635 $27,743 $27,805 $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 decreased $715 million, or 3%, during the first six months of 2024 • Total assets grew $1.107 billion, or 4%, in 2023 • Decreased cash po
Slide 20: CET 1 Capital Relative to Peers
11.00% 12.00% 13.00% CET1 11.7% 12.7% Peers Glacier • Regulatory capital CET1 ratio well above peer median 20 CET 1 Capital Relative to Peers♦ ♦ Proxy Compensation Peer Group Median as of 3/31/2024
Slide 21: Ample Liquidity of $14.2 Billion at June 30, 2024
Ample Liquidity of $14.2 Billion at June 30, 2024 • Ready access to liquidity totaling $9.3 billion • $4.7 billion in available borrowing capacity o Federal Reserve: $2.0 billion o FHLB: $2.1 billion o Correspondent banks: $0.6 billion • $3.8 billion of unpledged marketable securities • Cash of $0.8
Slide 22: 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 24% of total deposits • 32% of uninsured deposits are with customers that also have a loan relationship with
Slide 23: Strong Core Deposit Base - Continued
Strong Core Deposit Base - Continued • Demand and savings deposit characteristics • Deposit Granularity • Retail: 656,682 accounts ; average balance of $11,571 • Commercial: 161,745 accounts ; average balance of $59,341 • Relationship Length • Weighted average relationship age is 15 years • Composit
Slide 24: Deposit Trends
$10,776 $14,798 $21,337 $20,607 $19,929 $20,102 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 • During the first half of 2024: • total deposits increased $173 million, or 1% • core deposits grew $174 million or 1%, while brokered deposits declined $1.0 million, or 26% • deposits and repurc
Slide 25: Deposit Composition
Non- Interest Bearing 32% NOW and DDA 26% Savings 14% MMDA 16% CDs 10% Wholesale 2% 6/30/2023 Non- Interest Bearing 31% NOW and DDA 26% Savings 14% MMDA 14% CDs 15% Wholesale 0% 6/30/2024 25 Deposit Composition
Slide 26: Non-Interest Bearing Deposits
$3,697 $5,455 $7,779 $7,691 $6,023 $6,093 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 • Non-interest bearing deposits increased $70 million, or 1%, during the first half of 2024 • Non-interest bearing deposits remained at 30% of total core deposits at June 30, 2024 compared to 33% at June 30, 2
Slide 27: Interest-Bearing Deposit Cost Relative to Peers
0.24% 0.15% 0.09% 0.11% 1.22% 1.90% 1.10% 0.53% 0.21% 0.58% 2.49% 3.11% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Glacier Peers • Interest-bearing deposit cost increased to 1.92% at June 30, 2024 due to market dynamics and the competitive rate environment • Total deposit costs increased to 1.3
Slide 28: Loan Trends
$9,513 $11,123 $13,432 $15,247 $16,198 $16,852 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 $18,000 • Including the $450 million in loans from the Wheatland acquisition, gross loans increased $654 million, or 8% annualized, during the first half of 2024 with the largest inc
Slide 29: Organic Loan Growth
$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $364 $1,158 $419 $1,815 $951 $708 $204 • Organic loan growth for the first half of 2024 was $204 million, or 3% annualized, compared to $708 million, or 9% annualized, for the first half of 2023 29 Organic Loan Growth (Dollars in milli
Slide 30: Loan Composition
Residential Real Estate 10% CRE 64% Other Commercial 18% HELOC 5% Other Consumer 3% 6/30/2023 Residential Real Estate 11% CRE 64% Other Commercial 18% HELOC 5% Other Consumer 2% 6/30/2024 30 Loan Composition
Slide 31: Geographic Loan Dispersion
Montana 62% Idaho 22% Utah 2% Washington 1% Wyoming 9% Colorado 4% 12/31/2009 Montana 33% Idaho 13%Utah 15% Washington 8% Wyoming 8% Colorado 9% Arizona 9% Nevada 5% 6/30/2024 31 Geographic Loan Dispersion
Slide 32: Term CRE Portfolio
Term CRE Portfolio * Diversified and Low Risk Portfolio • Total portfolio $7.0 billion (42% of total portfolio) • Non-owner portfolio $3.9 billion (23% of total portfolio) • $879 thousand average loan balance • 58% average LTV • 0.04% past due rate • 0.01% non-performing • 98% of loans have recourse
Slide 33: Office CRE
Office CRE * • $671 thousand average loan balance • 59% average LTV • 0.02% past due • 0.00% non-performing • 98% of loans have recourse through guaranties • Includes $138 million in medical office • 16% of office portfolio matures or reprices prior to 2026 • Limited exposure to loans above $10 mill
Slide 34: Office CRE - Continued
Office CRE - Continued Denver $42 million Phoenix $29 million Salt Lake City $26 million Suburban/Rural $1.36 billion • Highly diversified portfolio across 8 states primarily in rural markets • Portfolio in Denver, Phoenix, and Salt Lake City represent 7% of total office (0.6% of total loans) • $17
Slide 35: Investment Portfolio Trends
$2,800 $5,528 $10,370 $9,022 $8,288 $7,900 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 • Investment securities ended second quarter 2024 at 28% of total assets compared to 31% at the end of second quarter 2023 • Investments decreased $388 million, or 5%, during the first
Slide 36: Investment Composition
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 13% 6/30/2023 US Gov't & Federal Agency 17% US Gov't Sponsored Enterprises 4% State & Local Gov'ts 22% Corporate Bonds 0% Residential MBS 44% Commercial MBS
Slide 37: Improved Credit Quality
Improved Credit Quality @ Glacier Bancorp 37
Slide 38: NPAs to Bank Assets
0.00% 0.10% 0.20% 0.30% 0.40% 0.27% 0.19% 0.12% 0.09% 0.12% 0.06% • NPAs decreased $7.6 million during the first half of 2024 to 0.06% of Bank assets compared to the $720 thousand decrease in the first half of 2023 to 0.12% of Bank assets 38 NPAs to Bank Assets 0.26%
Slide 39: 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 • Low levels of unemployment • Historical Loss Period Capture 39 (Dollars in millions) Other Key Model Inputs National Eco
Slide 40: Provision For Credit Losses
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $57 $39,765 $23,076 $19,963 $14,795 $8,243 $11,767 • Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will determine the future level of c
Slide 41: Net Charge-Offs
$0 $2,500 $5,000 $7,500 $10,000 $12,500 $6,806 $7,653 $2,329 $7,815 $10,316 $4,412 $5,962 • For the first six months of 2024, net charge-offs as a percentage of total loans were 0.04% compared to 0.03% in the first six months of 2023 41 Net Charge-Offs (Dollars in thousands)
Slide 42: ACL as a Percentage of Loans
1.00% 1.25% 1.50% 1.75% 1.31% 1.42% 1.29% 1.20%1.19% 1.19% 1.19% • ACL was in the 46th♦ percentile of Glacier’s peer group for first quarter of 2024 • The ACL was 1.19% of loans at the end of second quarter 2024 compared to 1.19% at the end of second quarter 2023 • As credit trends change, expect th
Slide 43: Shareholder Return
Shareholder Return @® Glacier Bancorp 43
Slide 44: Dividends Declared
$0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $1.10 $1.20 $1.30 • At June 30, 2024, Glacier’s dividend yield was 3.54% • The Company has declared 157 consecutive quarterly dividends 44 Dividends Declared
Slide 45: Total Return 6/30/2014 – 6/30/2024
10 Year Total Return 6/30/2014 – 6/30/2024 45
Slide 46: Total Return 6/30/2023 – 6/30/2024
1 Year Total Return 6/30/2023 – 6/30/2024 46
Slide 47: A Definitive Ranking of Publicly Traded Banks
47 A Definitive Ranking of Publicly Traded Banks 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 48: Named by Forbes as a World's Best Bank
Named by Forbes as a World’s Best Bank Five consecutive years (2020-2024) 48
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