Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Raymond James 2021 U.S. Bank Conference
43 slides from Glacier Bancorp's conference presentation, Sep 7, 2021
Slide 1: Raymond James 2021 U.S. Bank Conference
RAYMOND JAMES 2021 U.S. BANK CONFERENCE September 8 and 9, 2021
Slide 2: Forward-Looking Statements
1 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 intent
Slide 3: Glacier Bancorp, Inc. 6/30/2021 Snapshot
2 Glacier Bancorp, Inc. 6/30/2021 Snapshot Ticker GBCI Total Assets $20.49 billion Gross Loans $11.24 billion Deposits $16.76 billion TCBV Per Share $18.74 Quarterly Dividend $0.32 Stock Price $55.08 Market Cap $5.26 billion
Slide 4: Differentiated Bank Model
3 Differentiated Bank Model Genuine community banking model Backed by resources and support of Glacier Bancorp Strategy of growth through acquisitions and organically
Slide 5: Glacier is a "Company of Banks"
4 Glacier is a “Company of Banks”
Slide 6: Altabancorp Acquisition Highlights
5 Altabancorp Acquisition Highlights Pro Forma Utah Branch Footprint ALTA Branches FCB Branches 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’
Slide 7: Bank Divisions locations (as of 6/30/2021)
6 WY ID UT AZ NV WA CO MT 16 Bank Divisions 194 locations (as of 6/30/2021)
Slide 8: GBCI Geography and target banks
7 6/30/21 GBCI Geography Total chartered banks 311 Total target banks 216 Assets under $1B 187 Assets $1 – $3.5B 29
Slide 9: Solid Financial Results
mA, 7 Solid Financial Results £3 GLACIER BANCORP, INC.
Slide 10: Total Return 6/30/2016 – 6/30/2021
9 5 Year Total Return 6/30/2016 – 6/30/2021
Slide 11: Total Return 6/30/2020 – 6/30/2021
10 1 Year Total Return 6/30/2020 – 6/30/2021
Slide 12: Forbes Performance Ranking of America's Largest Banks
11 Forbes PERFORMANCE RANKING OF America’s 100 Largest Banks Sept 30 Rank Company Name ROTCE (%) NPAs/ Assets (%) CET1 Ratio (%) Efficiency Ratio (%) Operating Revenue Growth (%) 2020 3 Glacier Bancorp Inc. 16.0 0.33 12.0 51 21.0 2019 9 Glacier Bancorp Inc. 16.8 0.57 12.6 58 14.0 2018 16 Glacier Ban
Slide 13: Bank Director Bank Performance Scorecard
12 Bank Director BANK PERFORMANCE SCORECARD $5 Billion up to $50 Billion Year Ending Rank Company Name Core ROAA (%) Core ROAE (%) TCE/ Tang Assets (%) NPAs/ Loans & REO (%) NCOs/ Avg Loans (%) 2020 4 Glacier Bancorp Inc. 1.69 12.68 9.69 0.30 0.07 2019 4 Glacier Bancorp Inc. 1.78 12.99 10.95 0.35 0.
Slide 14: Reconciliation of 2017 Non-GAAP Measures to GAAP
13 Reconciliation of 2017 Non-GAAP Measures to GAAP In addition to the results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), this presentation contains certain non-GAAP financial measures. The Company believes that providing these non
Slide 15: Diluted Earnings Per Share
14 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 $1.59 $1.75* $2.17 $2.38 $2.81 $0.46 $0.85 $0.66 $0.81 $1.13 Second quarter 2021 earnings per share of $0.81 increased $0.15 per share, or 23%, over prior year second quarter earnings
Slide 16: Return on Assets
15 1.15% 1.25% 1.35% 1.45% 1.55% 1.65% 1.75% 1.85% 1.32% 1.59% 1.41%* 1.64% 1.62% 1.42% 1.64% ROA in the first quarter of 2021 was in the 79th♦ percentile among Glacier’s peer group Return on Assets *Non-GAAP (see reconciliation on slide 13) ♦BHCPR as of 3/31/2021
Slide 17: Return on Tangible Equity
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% 20.00% 12.71% 16.15% 13.66%* 16.42% 16.85% 14.28% 18.49% The Company’s historically high capital levels have made it more difficult to produce higher ROTE * Non-GAAP (see reconciliation on slide 13)
Slide 18: Net Interest Income / Margin
17 Net Interest Income / Margin $100 $200 $300 $400 $500 $600 $700 $800 $315 $345 $433 $503 $600 $568* $630* 4.02% 4.12% 4.21% 4.39% 4.09% 4.23% 3.58% Second quarter 2021 net interest income of $630 million increased $62 million, or 11%, over net interest income of $568 million for second quarter
Slide 19: Efficiency Ratio
18 Efficiency Ratio 44.0% 46.0% 48.0% 50.0% 52.0% 54.0% 56.0% 58.0% 60.0% 55.9% 53.9% 54.7% 57.8% 50.0% 50.8% 48.3% Excluding the impact of PPP, the efficiency ratio would be 53.5 percent for the second quarter 2021 and 53.9 percent for the second quarter of 2020 Excluding the impact of PPP, the
Slide 20: Strong Balance Sheet
AIA, 7 Strong Balance Sheet 4 19 AN GLACIER BANCORP, ING.
Slide 21: Asset Trends
20 Asset Trends $9,451 $9,706 $12,115 $13,684 $18,504 $20,488 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 Total assets increased $2.0 billion, or 11%, during the first half of 2021 Total assets grew $4.8 billion, or 35%, in 2020, including $745 million from the State Bank of A
Slide 22: Capital Ratios Relative to Peers
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 9.2% 12.6% 13.3% 15.4% 9.1% 12.6% 12.6% 14.7% Peers Glacier Total risk-based capital ranks in the 44th percentile among Glacier’s peer group Capacity to add $3.0 billion of
Slide 23: Ample Liquidity of $14.4 Billion
22 Ample Liquidity of $14.4 Billion Ready access to liquidity totaling $10.8 billion $5.2 billion in available borrowing capacity o Fed Discount Window: $1.3 billion o Fed PPP Liquidity Facility: $0.7 billion (Based on PPP loans funded as of June 30, 2021) o FHLB: $2.6 billion o Correspondent ba
Slide 24: Deposit Trends
23 Deposit Trends $7,372 $7,580 $9,494 $10,776 $14,798 $16,761 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 $18,000 Deposits increased $2.0 billion, or 13%, during the first half 2021 Growth in the number of deposit accounts has also increased significantl
Slide 25: Deposit Composition
24 Deposit Composition Non- Interest Bearing 38% NOW and DDA 23% Savings 13% MMDA 18% CDs 7% Wholesale 1% 6/30/2020 Non- Interest Bearing 38% NOW and DDA 25% Savings 14% MMDA 18% CDs 5% Wholesale 0% 6/30/2021
Slide 26: Non-Interest Bearing Deposits
25 Non-Interest Bearing Deposits $2,042 $2,312 $3,001 $3,697 $5,455 $6,308 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 $7,000 Non-interest bearing deposits increased $853 million, or 16%, during the first half 2021 Non-interest bearing deposits comprise 38% of to
Slide 27: Deposit Costs Relative to Peers
26 Deposit Costs Relative to Peers 0.22%0.20% 0.23% 0.14% 0.08%0.07% 0.31% 0.54% 0.79% 0.37% 0.17% 0.15% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% Glacier Peers Total deposit costs have remained stable while Glacier’s peer group costs have experienced greater volatility Core de
Slide 28: Loan Trends
27 Loan Trends $5,684 $6,578 $8,288 $9,513 $11,123 $11,238 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 During the first half 2021, gross loans excluding PPP loans increased $330 million, or 6% annualized Excluding PPP loans, gross loans increased $249 million, or 10% annua
Slide 29: Organic Loan Growth
28 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $554 $601 $728 $364 $1,158 $1,489 $115 Organic loan growth excluding PPP loans for second quarter 2021 was $249 million, or 10% annualized, compared to a decrease of $61.6 million, or 2% annualized, for second quarter 2020 Organic loan growth
Slide 30: Loan Composition
29 Loan Composition Residential Real Estate 8% CRE 53% Other Commerical 31% HELOC 6% Other Consumer 2% 6/30/2020 Residential Real Estate 6% CRE 59% Other Commerical 26% HELOC 6% Other Consumer 3% 6/30/2021
Slide 31: Geographic Loan Dispersion
30 Geographic Loan Dispersion Montana 62% Idaho 22% Utah 2% Washington 1% Wyoming 9% Colorado 4% 12/31/2009 Montana 40% Idaho 15% Utah 3% Washington 7% Wyoming 8% Colorado 11% Arizona 10% Nevada 6% 6/30/2021
Slide 32: Investment Portfolio Trends
31 Investment Portfolio Trends $3,101 $2,427 $2,870 $2,800 $5,528 $7,172 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Investment securities ended second quarter 2021 at 35% of total assets compared to 22% at the end of second quarter 2020 Investments increased $1.644 billion, or 30%, during
Slide 33: Investment Composition
32 Investment Composition US Gov't & Federal Agency 1%US Gov't Sponsored Enterprises 0% State & Local Gov'ts 40% Corporate Bonds 10% Residential MBS 23% Commercial MBS 26% 6/30/2020 US Gov't & Federal Agency 0% US Gov't Sponsored Enterprises 1% State & Local Gov'ts 22% Corporate Bonds 3% Residential
Slide 34: Improved Credit Quality
Improved Credit Quality 33 rN GLACIER BANCORP, INC.
Slide 35: NPAs to Bank Assets
34 NPAs to Bank Assets 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 0.76% 0.68% 0.47% 0.27% 0.19% 0.27% 0.26% NPAs increased $17.6 million during the first half 2021 to 0.26% of Bank assets compared to the $8.5 million increase in the first half 2020 to 0.27% of Bank assets
Slide 36: CECL and Allowance for Credit Losses (ACL)
35 CECL and Allowance for Credit Losses (ACL) (Dollars in millions) Commercial Asset Quality Ratings Consumer Loan Past Due Status Additional Qualitative Adjustments Prepayment Speed Assumptions Historical Loss Period Capture Other Key Model Inputs National Economic Assumptions (June 2021)
Slide 37: Provision For Credit Losses
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 $2,333 $10,824 $9,953 $57 $39,765 $16,929 -$5,653 The second quarter 2021 credit loss benefit related to improvement in the economic forecasts Loan portfolio growth and credi
Slide 38: Net Charge-Offs
37 Net Charge-Offs $0 $2,500 $5,000 $7,500 $10,000 $12,500 $2,458 $10,828 $8,282 $6,806 $7,653 $2,046 $1,561 For the first half 2021, net charge-offs as a percentage of total loans were 0.01% compared to 0.02% in the first half 2020 (Dollars in thousands)
Slide 39: ACL as a Percentage of Loans
38 ACL as a Percentage of Loans 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2.28% 1.97% 1.58% 1.31% 1.42% 1.42% 1.35% ACL was in the 44th♦ percentile of Glacier’s peer group for first quarter 2021 Excluding PPP loans, the ACL was 1.44% of loans at the end of second quarter 2021 compared to 1.62% at the
Slide 40: Shareholder Returns
Shareholder 39 “# GLACIER BANCORP, INC.
Slide 41: Dividends Declared
40 Dividends Declared At June 30, 2021, Glacier’s dividend yield was 2.32% The Company has declared 145 consecutive quarterly dividends In 2020, the Company increased its quarterly dividend by $0.07, or 6.3%, over 2019 $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.
Slide 42: Long-Term Performance Since 1984
41 Long-Term Performance Since 1984 Annual Total Return * 15.9% Annual EPS Growth Rate 10.8% Annual Dividend Growth Rate 12.5% * Reflects results through 6/30/2021, assuming no reinvestment of dividends Compounded Rates Strong consistent performance over the past 37 years Long-term goal is to pr
Slide 43: NW Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada
NW Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada
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