Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — D.A. Davidson 22nd Financial Institutions Virtual Conference 2020
48 slides from Glacier Bancorp's conference presentation, May 6, 2020
Slide 1: D.A. Davidson 22nd Financial Institutions Virtual Conference
D.A. DAVIDSON 22ND FINANCIAL INSTITUTIONS VIRTUAL CONFERENCE 05.06.20 — 05.08.20
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: COVID-19 Response Overview
s > COVID-19 Response Overview Increased Support and Resources: > Eliminated co-pay / co-insurance for any screening and testing > Daily meetings between GAC! HR and Bank Divisions Flexible employee schedules Extended employee leave Guidance on high-risk health situations > Review CDC guidelines wee
Slide 4: Glacier Bancorp, Inc. 3/31/2020 Snapshot
RA, Uf Gross Loans Deposits TCBV Per Share Quarterly Dividend Stock Price Market Cap Glacier Bancorp, Inc. 3/31/2020 Snapshot Ticker GBCI Total Assets $15.16 billion $10.09 billion $11.56 billion $16.35 $0.29 $34.01 $3.24 billion 3 GLACIER BANCORP, INC.
Slide 5: Differentiated Bank Model
4 Differentiated Bank Model > Genuine community banking model > Backed by resources and support of Glacier Bancorp > Strategy of growththrough acquisitions and organically
Slide 6: Glacier is a "Company of Banks"
Ss > Glacier is a “Company of Banks” vision of Glacier Bank AG .acieR BANK’ off Fis Security Bank @ walleye ant ADI QS <>, Mountain litizens | WESTERN SECURITY West Bank é je mad aay ‘A Friend You Can Talk To FIRST oF ® & wings eek re: mt SAN First State sae ontana nic aE eee JUANS 5 PEAKS BANK Dino
Slide 7: 2019 Announced Acquisition Highlights
N 2019 Announced Acquisition Highlights FIRS i 5 comity pritage (gure, TANK ank, (att soos bic ‘Transaction Overview 972020 Transaction Value / Tangible Book Value (%) 216% 239% 212% ‘Select Pro Forma Impact Projected 2020 EPS Accretion (% / $ per share) JAUME 1.9% / 80.05 1.0% /80.02 Projected 2021
Slide 8: GBCI Geography
s > Acuacier BANK ok dhe Foothills Bank ~” #3 16 Bank Divisions 23 192 locations «: or381202 GLACIER BANCORP, INC.
Slide 9: Topography of the United States with GBCI Geography
Slide 10: Percent Change in Real GDP by State
RA, N Percent Change in Real GDP by State 2019:Q3 — 2019:Q4 9 Navcux BANCORP, INC.
Slide 11: Price of Inter-State Migration
Price of Inter-State Migration Net gain/loss as % of state's total adjusted gross income (AGI) m Winners: > +0.20% m Losers: <-0.20% m Within +/- 0.20% 0 458 1.10% -0.479, 160% 5 0.53% 65% 9,52, 0.54% ose 105% - Bloomberg analysis of IRS individual filings in 2016 and 2015, and Census data from 2017
Slide 12: Solid Financial Results
4 Solid Financial Results
Slide 13: 5 Year Total Return
RA, Uf 5 Year Total Return 3/31/2015 — 3/31/2020 : “tallttillttitianattiatishatitatittilttitanitl 17 20% 2019 2020 2016 208 —— NASDAQ:GBCI: 60.48% @ NASDAQ:GBCI-Vol —— Russell 2000:-1.23 % —— S&P 500 Commercial Banks: 11.01 % 12 Neracicn BANCORP, INC.
Slide 14: 1 Year Total Return
s > 1 Year Total Return 3/31/2019 — 3/31/2020 oo Dalton dil dad ant, erin ‘e stadt May "19 wD Sep "19 Nov "19 Jan ‘20 Mar'20 —— NASDAQ:GBCI:-1245% @ NASDAQ:GBCI-Vol —— Russell 2000: -23.99 % —— S&P 500 Commercial Banks: -23.83 % 13 GLACIER BANCORP, INC.
Slide 15: Forbes Performance Ranking of America's Largest Banks
RA, Uf Forbes PERFORMANCE RANKING OF America’s 100 Largest Banks NPAs/ CET1 Efficiency Operating ROTCE Assets Ratio Ratio Revenue Sept 30 Rank Company Name (%) 6) (%) (%) __ Growth (%) 2019 9. Glacier Bancorp Inc. 16.8 0.57 126 58 14.0 2018 16 Glacier Bancorp Inc. 14.0 0.79 12.3 55 175 2017 10 Glaci
Slide 16: Bank Director Bank Performance Scorecard
RA, Uf Bank Director BANK PERFORMANCE SCORECARD $5 Billion up to $50 Billion Core Core TCE/ NPAs/ NCOs/ Year ROAA ROAE Tang Assets Loans & Avg Loans Ending Rank Company Name () () () REO (%) (@) 2018 16 Glacier Bancorp Inc. 167 13.21 9.99 091 0.11 2017 17 __ Glacier Bancorp Inc. 144 11.75 10.58 147
Slide 17: Reconciliation of 2017 Non-GAAP Measures to GAAP
December 31 @ollars in thousands, except per share data) 2017 Earnings per share YTD (GAAP) $ 1.50 Tax Act adjustment (GAAP) 0.25 Earnings per share YTD (non-GAAP) _3 1.75 Return on assets (GAAP) 1.20% Tax Act adjustment (GAAP) 0.21% Return on assets (non-GAAP) 1.41% Return on tangible equity (GAAP)
Slide 18: Earnings Per Share
Earnings Per Share 2.38, $2.17 § > First quarter 2020 earnings 7 : $1.75* per share decreased $0.12 per share, or 21%, over $1.80 - g1.54 $1.59 prior year first quarter $1.60 1.48 > First quarter 2020 earnings $1.20 includes: $1.00 0/80 = Credit loss expense of $22.7 $0.58 million due to CECL $0.60
Slide 19: Return on Assets
Return on Assets 1.64% 1.67% 1.65% : 1.59% > ROA in the fourth quarter of 2019 was in the 91st 1.55% percentile among Glacier’s peer group 1.45% 1.41%* 1.36% 1.35% 1.32% 1.25% 1.25% 1.156% <== er J & \. S ) \) Ss PP Ss SF YY LY Si a a OO RG ee * Non-GAAP (see reconciliation on slide 16) * BHCPR as o
Slide 20: Return on Tangible Equity
18.00% 17.00% 16.00% 15.00% 14.00% 13.00% = 12.00% 11.00% 10.00% 4 13.66%’ pas 71% 12.71% * Non-GAAP (see reconciliation on slide 16) > We maintain historically high capital levels which have made it more difficult to produce higher ROTE 19 Nemacin BANCORP, INC.
Slide 21: Net Interest Margin
Net Interest Margin $600 p 4.60% > First quarter 2020 net | 4.50% interest margin of 4.36% increased 2 basis points ; 4.40% over the 2019 first quarter net interest 4.30% margin of 4.34% p 4.20% p 4.10% + 4.00% 3.90% mm Net Interest Income -@ Net Interest Margin 20 @ollars in millions) *Net interest
Slide 22: Efficiency Ratio
Efficiency Ratio > Excluding $18.9 million of expenses(*) incurred in the third quarter of 2019, the 2019 efficiency ratio would be 54.8% 57.8% * $5.4 million of accelerated stock compensation expense from the Heritage acquisition * $3.5 million write-off of deferred prepayment penalties on FHLB adv
Slide 23: Strong Balance Sheet
Ry, a Strong Balance Sheet f 22 Ncuacier Bancorp, INC.
Slide 24: Asset Trends
Asset Trends 1g000 $15,158 > Total assets increased $1.4 $15,000 billion, or 11%, in the first quarter 2020, including $744 $14,000 $13,684 million from State Bank of é Arizona 13,000 - $12,115 $12,000 > Total assets grew $1.6 billion, or 13%, in 2019, $11,000 including $379 million from First Natio
Slide 25: Total Risk Based Capital
> Total risk based capital 15.00% ranks in the 68* percentile among Glacier’s peer group 12.00% 9.00% > Capacity to add $6.0 billion of assets and still maintain 9 A 6.00% an 8% leverage ratio 3.00% A 0.00% T T T t Tierl CETL Tier1 Total Leverage RBC RBC mPeers WGlacier * BHCPR as of 12/31/2019 24 G
Slide 26: Ample Liquidity of $10.1 Billion
Ample Liquidity of $10.1 Billion > Ready access to liquidity totaling $6.7 billion = $4.6 billion in available borrowing capacity o Fed Discount Window: $1.3 billion o Fed PPP Liquidity Facility: $1.1 billion (Based on PPP loans approved as of April 21) o FHLB: $1.8 billion o Correspondent banks: $0
Slide 27: Deposit Trends
Deposit Trends $12,500 > First quarter 2020 deposits $11,558 increased $782 million, or 7%, $11,500 including $603 million from State Bank of Arizona $10,500 > Organic deposit growth for £500 first quarter 2020 was $178 ° million, or 2% eo > Growth in the number of deposit accounts has also $7,500 i
Slide 28: Deposit Composition
— 7” 7 Deposit Composition 3/31/2019 Wholesale CDs aie Non- Interest ae Bearing 18% 32% Savings Mes NOW and DDA 25% 3/31/2020 Wholesale CDs 1% 9% Non- Interest Bearing MMDA am 18% Savings 14% DDA 25% 27 A GLACIER BANCORP, INC.
Slide 29: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits $3,876 (ollars in millions) > Non-interest bearing deposits increased $179 million, or 5%, during first quarter 2020, including $142 million from State Bank of Arizona > Non-interest bearing deposits comprise 33% of total deposits > Organic growth for first quarter 2020
Slide 30: Total Deposit Costs
0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 0.73% ~) oY s » 3 > Total deposit costs have remained stable while Glacier’s peer group costs have increased Core deposits are a competitive advantage and will be a key driver of future performance 29 Nemacin BANCORP, INC.
Slide 31: Loan Trends
RA, Uf $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 Loan Trends giooss * First quarter 2020 gross $4,000 - (ollars in millions) loans increased $575 million, or 6%, including $452 million from State Bank of Arizona Gross loans increased $1.2 billion, or 15%, during 2019, including $245 million
Slide 32: Organic Loan Growth
$601 > Organic loan growth for $600 | $554 first quarter 2020 was $124 ray million, or 5% annualized, compared to $39 million, or $400 546 $364 2% annualized, for first quarter 2019 $300 | $200 | $100 5 im _. = = (Dollars in millions) st GLACIER BANCORP, INC.
Slide 33: Loan Composition
a CRE Loan Composition 3/31/2019 3/31/2020
Slide 34: Geographic Loan Dispersion
s > Geographic Loan Dispersion 2009 Geographic Distribution vaaho 03/31/20 Geographic Distribution Es Montana 33 GLACIER BANCORP, INC.
Slide 35: COVID-19 High Risk Industries
COVID-19 High Risk Industries Enhanced - Monitoring Portfolio Balances as of March 31, 2020 Outstanding Committed % of Portfolio % $ Average (Millions) Balance Balance (outstandingbalance) Modified _ Modified uv Hotel/Motel $433 $467 429% 44% $191 52% Restaurant $149 $154 148% 41% $61 B% Travel/Tour
Slide 36: Loan Modifications and PPP
s > Loan Modifications and PPP Loan Modifications As of April 21 ‘$ Approved ‘Type (Millions) ‘% of Portfolio approved 8,775 PPP loans in the > As of April 21, the Company had Cor ial 660 consi os amount of $1.088 billion Mortgage $50 Total $716 Modifications by Indus PPP Loans bh ate wyoming. 8% Ot
Slide 37: Investment Portfolio Trends
$4,000 $3,500 $3,000 $2,500 $2,000 Investment Portfolio Trends $3,634 (ollars in millions) > First quarter 2020 investment securities made up 24% of total assets > Investments increased $834 million in the first quarter 2020 > Our long-term goal is to maintain investment securities between 20% to 25
Slide 38: Investment Composition
Investment Composition 3/31/2019 3/31/2020 a 37
Slide 39: Improved Credit Quality
Improved Credit Quality
Slide 40: NPAs to Bank Assets
1.25% 1.00% NPAs to Bank Assets > NPAs decreased $12 million in the first quarter 2020 compared to the first quarter of 2019 39 GLACIER BANCORP, INC.
Slide 41: CECL Inputs and Allowance for Credit Losses
lel Inputs > Economic inputs + Unemployment + GDP + ORE Price Index + Home Price Index + BBB Corp Spread to UST 10 yr + Prime Rate > Portfolio credit characteristics * Commercial asset quality ratings + Consumer past due status ACL 2pys ECL Ad (Dollars in millions) d Economies Pandemic F Release dat
Slide 42: Credit Loss Expense
Credit Loss Expense 25,000 § $22,744 $20,000 > Loan portfolio growth and $15,000 credit quality considerations a $10,824 will determine the level of $9,953 credit loss expense $10,000 $5,000 $2,333] $2,284 | a $57 $57 $0 T T == o Oo © S \J J 2 S PSP YD SP PY VY oS Si a a OK Oe > » (Dollars in thousa
Slide 43: Net Charge-Offs
Net Charge-Offs $15,000 $12,500 $10,828 $10,000 > First quarter 2020 net charge- offs as a percent of total loans $7,500 were 0.01% compared to 0.02% for first quarter 2019 $5,000 $2,500 + $0 (Dollars in thousands) ae GLACIER BANCORP, INC.
Slide 44: ACL as a Percent of Loans
‘| 2.55% * BHCPR as of 12/31/2019 ACL as a Percent of Loans > ACL was 434% of non- performing loans at the end of first quarter 2020 compared to 304% at the end of first quarter last year ACL was in the = 86 percentile of Glacier’s peer group for 2019 As credit trends change, expect our allowance to
Slide 45: Shareholder Return
4 Shareholder Return
Slide 46: Dividends Declared
Dividends Declared $1.20 $1.15 > At March 31, 2020, Glacier’s $1.10 dividend yield was 3.41% $1.05 am >» The Company has declared $0.05 140 consecutive quarterly aoa dividends $0.85 $0.80 > In 2019, the Company $0.75 increased its quarterly $0.70 dividend by $0.10, or 10%, $0.65 over 2018 45 GLACIER
Slide 47: Long-Term Performance
Long-Term Performance Since 1984 Compounded Rates > Strong consistent performance over the past 36 years Annual Total Return * 15.2% > Long-term goal is to produce Annual EPS Growth Rate 5.2% double digit dividend growth Annual Dividend Growth Rate 12.5% * Reflects results through 3/31/2020, assumin
Slide 48: Colorado, Arizona & Nevada
Colorado, Arizona & Nevada 3. Washington, Wyo
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