Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Q1 2023 Earnings Presentation
48 slides from Glacier Bancorp's earnings presentation, May 23, 2023
Slide 1: Investor Presentation March 31, 2023
Investor Presentation March 31, 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. 3/31/2023 Snapshot
Glacier Bancorp, Inc. 3/31/2023 Snapshot Ticker GBCI Total Assets $27.80 billion Gross Loans $15.52 billion Deposits $20.15 billion TCBV Per Share $17.16 Dividends $0.33 Stock Price $42.01 Market Cap $4.66 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: GBCI Acquisition History
GBCI Acquisition History – Last 10 Years 6 $7.7 $7.9 $8.3 $9.1 $9.5 $9.7 $12.1 $13.7 $18.5 $25.9 $26.6 $- $4 $8 $12 $16 $20 $24 $28 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Assets ($B) Acquisitions • Long history of adding high quality community banks that fit the Glacier banking
Slide 7: Bank Divisions and Locations
WY ID UT AZ NV WA CO MT • 17 Bank Divisions • 222 Locations (as of 3/31/2023) 7
Slide 8: GBCI Geography: Target Banks
3/31/23 GBCI Geography Total chartered banks 272 Total target banks 208 Assets under $1B 173 Assets $1 – $3.5B 35 8
Slide 9: Solid Financial Results
Solid Financial Results @® Glacier Bancorp 2
Slide 10: Year Total Return 3/31/2013 – 3/31/2023
10 Year Total Return 3/31/2013 – 3/31/2023 10
Slide 11: Year Total Return 3/31/2022 – 3/31/2023
1 Year Total Return 3/31/2022 – 3/31/2023 11
Slide 12: A Definitive Ranking of Publicly Traded Banks
A Definitive Ranking of Publicly Traded Banks 12 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 13: 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) 13
Slide 14: 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 $2.17 $2.38 $2.74 $0.61 $0.55 $2.86 • The decrease in first quarter 2023 EPS over first quarter 2022 EPS was driven primarily by the significant increase in funding costs from the histor
Slide 15: Return on Assets
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% 1.06% 0.93% • ROA in the fourth quarter of 2022 was in the 47th♦ percentile among Glacier’s peer group 15 Return on Assets ♦BHCPR as of 12/31/2022 1.33%
Slide 16: 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% 13.95% 13.60% • The Company’s historically high capital levels have made it more difficult to produce higher ROTE. 16 Return on Tangible Equity
Slide 17: Net Interest Income / Margin
$100 $200 $300 $400 $500 $600 $700 $800 $900 $433 $503 $600 $663 $788 $753 $755 4.21% 4.39% 4.09% 3.42% 3.27% 3.20% 3.08% • First quarter 2023 net interest income of $755 million increased $3 million, or 0.34%, over net interest income of $753 million for first quarter 2022 • First quarter 2023 net
Slide 18: Efficiency Ratio
44.0% 46.0% 48.0% 50.0% 52.0% 54.0% 56.0% 58.0% 60.0% 62.0% 54.7% 57.8% 50.0% 51.4% 54.6% 57.1% 60.4% • The efficiency ratio for first quarter 2023 was 60.4% compared to 57.1% for first quarter 2022 and was primarily due to the increase in interest expense and non-interest expense in the first quart
Slide 19: Strong Balance Sheet
Strong Balance Sheet @® Glacier Bancorp 19
Slide 20: Asset Trends
$12,115 $13,684 $18,504 $25,941 $26,635 $27,802 $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 organically increased $1.167 billion, or 4%, during first quarter 2023 • Total assets grew $694 million, or 3%, in 2022 • Increased cash posit
Slide 21: CET 1 Capital Relative to Peers
11.00% 12.00% 13.00% CET1 11.0% 12.3% Peers Glacier • Regulatory capital CET1 ratio well above peer median 21 CET 1 Capital Relative to Peers♦ ♦ Proxy Compensation Peer Group Median for 2022
Slide 22: Ample Liquidity of $15.1 Billion at March 31, 2023
Ample Liquidity of $15.1 Billion at March 31, 2023 • Ready access to liquidity totaling $10.5 billion • $6.9 billion in available borrowing capacity o Federal Reserve: $2.5 billion o FHLB: $3.6 billion o Correspondent banks: $0.8 billion • $2.1 billion of unpledged marketable securities • Cash of $1
Slide 23: 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 26% of total deposits • 33% of uninsured deposits are with customers that also have a loan relationship with
Slide 24: Strong Core Deposit Base - Continued
Strong Core Deposit Base - Continued • Demand and savings deposit characteristics • Deposit Granularity • Retail: 638,000 accounts ; average balance = $14,000 • Commercial: 154,000 accounts ; average balance = $63,000 • Relationship Length • Weighted average relationship age is 15 years • Compositio
Slide 25: Deposit Trends
$9,494 $10,776 $14,798 $21,337 $20,607 $20,148 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 • During first quarter 2023, deposits decreased $459 million, or 2% • Banking industry saw record deposit outflows in 2022 • Uninsured deposits, excluding collateralized publi
Slide 26: Deposit Composition
Non- Interest Bearing 37% NOW and DDA 25% Savings 15% MMDA 19% CDs 4% Wholesale 0% 3/31/2022 Non- Interest Bearing 35% NOW and DDA 25% Savings 15% MMDA 17% CDs 6% Wholesale 2% 3/31/2023 26 Deposit Composition
Slide 27: Non-Interest Bearing Deposits
$3,001 $3,697 $5,455 $7,779 $7,691 $7,001 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 • Non-interest bearing deposits decreased $690 million, or 9%, during first quarter 2023 • Non-interest bearing deposits decreased to 35% of total core deposits at March 31, 2023 compared to 37% at year
Slide 28: Interest-Bearing Deposit Cost Relative to Peers
0.23% 0.22% 0.24% 0.15% 0.09% 0.11% 0.52% 0.81% 1.10% 0.53% 0.21% 0.61% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Glacier Peers • Interest-bearing deposit cost increased to 0.36% at March 31, 2023 due to market dynamics and the competitive rate environment. Peer data for March 31, 2023 was not avail
Slide 29: Loan Trends
$8,288 $9,513 $11,123 $13,432 $15,247 $15,519 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 • Gross loans increased $272 million, or 7% annualized, during first quarter 2023 with the largest increase in commercial real estate of $195 million, or 8% annualized • Gross l
Slide 30: 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 $299 $272 • Organic loan growth for first quarter 2023 was $272 million, or 7% annualized, compared to $299 million, or 9% annualized, for first quarter 2022 30 Organic Loan Growth (Dollars in millions)
Slide 31: Loan Composition
Residential Real Estate 8% CRE 65% Other Commercial 19% HELOC 5% Other Consumer 3% 3/31/2022 Residential Real Estate 10% CRE 64% Other Commercial 18% HELOC 5% Other Consumer 3% 3/31/2023 31 Loan Composition
Slide 32: 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% 3/31/2023 32 Geographic Loan Dispersion
Slide 33: Term CRE Portfolio Diversified and Low Risk
Term CRE Portfolio Diversified and Low Risk Portfolio • Total portfolio $6.5 billion (42% of total portfolio) • Non-owner portfolio $3.6 billion (23% of total portfolio) • $832 thousand average loan balance • 59% average LTV • 0.04% past due rate • 0.05% non-performing • $191 million non-recourse (3
Slide 34: Office CRE
Office CRE Total office CRE $1.4 billion (9.6% of total portfolio) Non-owner office CRE $742 million (4.8% of total portfolio) • Includes $163 million in medical office • $676 thousand average loan balance • 59% average LTV • 0.03% past due • 0.03% non-performing • $30 million non-recourse (2% of CR
Slide 35: Office CRE - Continued
Office CRE - Continued Denver $49 million Phoenix $21 million Salt Lake City $51 million Suburban/Rural $1.37 billion • Portfolio in Denver, Phoenix, and Salt Lake City represent 8% of total office • $12 million in large metro central business districts (less than 1% of total Office) • 9% of office
Slide 36: Investment Portfolio Trends
$2,870 $2,800 $5,528 $10,370 $9,022 $8,863 $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 first quarter 2023 at 32% of total assets compared to 39% at the end of first quarter 2022 • Investments decreased $160 million, or 2%, during firs
Slide 37: Investment Composition
US Gov't & Federal Agency 13% US Gov't Sponsored Enterprises 3% State & Local Gov'ts 18% Corporate Bonds 1% Residential MBS 53% Commercial MBS 12% 3/31/2022 US Gov't & Federal Agency 15% US Gov't Sponsored Enterprises 3% State & Local Gov'ts 20% Corporate Bonds 0% Residential MBS 49% Commercial MBS
Slide 38: 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 38 10% 90% 3/31/2022 Tax-Exempt Taxable 13% 87% 3/31/2023 Tax-Exempt Taxable
Slide 39: Improved Credit Quality
Improved Credit Quality @® Glacier Bancorp 39
Slide 40: 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% 0.24% 0.12% • NPAs decreased $763 thousand during first quarter 2023 to 0.12% of Bank assets compared to the $5.2 million decrease in first quarter 2022 to 0.24% of Bank assets 40 NPAs to Bank Assets 0.19%
Slide 41: 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 41 (Dollars in millions) Other Key Model Inputs National Economic Assumptions (December 2
Slide 42: 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 $7,031 $5,470 • Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will determine the future level of cre
Slide 43: Net Charge-Offs
$0 $2,500 $5,000 $7,500 $10,000 $8,282 $6,806 $7,653 $2,329 $7,815 $850 $1,939 • First quarter 2023, net charge-offs as a percentage of total loans were 0.01% compared to 0.01% in first quarter 2022 43 Net Charge-Offs (Dollars in thousands)
Slide 44: ACL as a Percentage of Loans
1.00% 1.25% 1.50% 1.75% 1.58% 1.31% 1.42% 1.29% 1.20% 1.28% 1.20% • ACL was in the 66th♦ percentile of Glacier’s peer group for fourth quarter 2022 • The ACL was 1.20% of loans at the end of first quarter 2023 compared to 1.28% at the end of first quarter 2022 • As credit trends change, expect the A
Slide 45: Shareholder Return
Shareholder Return @® Glacier Bancorp
Slide 46: 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 March 31, 2023, Glacier’s dividend yield was 3.19% • The Company has declared 152 consecutive quarterly dividends • In 2022, the Company increased its quarterly dividend by $0.05, or 3.9%
Slide 47: Long-Term Performance Since 1984
• Strong consistent performance over the past 39 years • Long-term goal is to produce double digit dividend growth 47 Long-Term Performance Since 1984 Annual Total Return * 14.7% Annual EPS Growth Rate 9.2% Annual Dividend Growth Rate 12.0% * Reflects results through 3/31/2023, assuming no reinvestm
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