Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Investor Presentation (May 2024)
49 slides from Glacier Bancorp's investor presentation, May 8, 2024
Slide 1: Investor Presentation March 31, 2024
Investor Presentation March 31, 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. 3/31/2024 Snapshot
Glacier Bancorp, Inc. 3/31/2024 Snapshot Ticker GBCI Total Assets $27.82 billion Gross Loans $16.73 billion Deposits $20.43 billion TCBV Per Share $18.00 Dividends $0.33 Stock Price $40.28 Market Cap $4.57 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: Community Financial Group, Inc. Acquisition
Community Financial Group, Inc. Acquisition • A new bank division, Wheatland Bank, will be formed upon combining with the North Cascades Bank division • Establishes a market-leading Eastern Washington franchise • The acquisition is consistent with Glacier’s long-term strategy of buying good banks in
Slide 7: Six Montana Branches
Six Montana Branches 7 • February 12, 2024, Glacier Bank entered into a purchase and assumption agreement with HTLF Bank, a wholly owned subsidiary of Heartland Financial USA, Inc., to acquire six Montana branches • The six branches Glacier Bank will acquire are located in : • The branches will join
Slide 8: Bank Divisions and Locations
WY ID UT AZ NV WA CO MT • 17 Bank Divisions • 232 Locations (as of 3/31/2024) 8
Slide 9: GBCI Acquisition History – 2013 through 3/31/2024
$7.9 $8.3 $9.1 $9.5 $9.7 $12.1 $13.7 $18.5 $25.9 $26.6 $27.7 $27.8 $- $5 $10 $15 $20 $25 $30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3/31/2024 Total Assets ($B) Acquisitions Pending* Six Montana Branches GBCI Acquisition History – 2013 through 3/31/2024 • Long history of adding high q
Slide 10: GBCI Geography
3/31/24 GBCI Geography Total chartered banks 260 Total target banks 201 Assets under $1B 165 Assets $1 – $3.5B 36 10
Slide 11: Solid Financial Results
Solid Financial Results @ Glacier Bancorp u
Slide 12: Year Total Return 3/31/2014 – 3/31/2024
10 Year Total Return 3/31/2014 – 3/31/2024 12
Slide 13: Year Total Return 3/31/2023 – 3/31/2024
1 Year Total Return 3/31/2023 – 3/31/2024 13
Slide 14: A Definitive Ranking of Publicly Traded Banks
14 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 15: Named by Forbes as a World's Best Bank
Named by Forbes as a World’s Best Bank Five consecutive years (2020-2024) 15
Slide 16: Diluted Earnings Per Share
16 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 $2.74 • The decrease in first quarter 2024 EPS over first quarter 2023 EPS was driven primarily by the continued increase in funding costs which has outpace
Slide 17: 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% 0.93% 0.47% • ROA in the fourth quarter of 2023 was in the 41st♦ percentile among Glacier’s peer group 17 Return on Assets ♦BHCPR as of 12/31/2023 1.15%
Slide 18: 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% 13.60% 6.86% • The Company’s historically high capital levels have made it more difficult to produce higher ROTE. 18 Return on Tangible Equity
Slide 19: Net Interest Income / Margin
$100 $200 $300 $400 $500 $600 $700 $800 $900 $503 $600 $663 $788 $692 $755 $670 4.39% 4.09% 3.42% 3.27% 2.73% 3.08% 2.59% • Net interest income of $670 million for the first three months of 2024 decreased $86 million, or 11.33%, over net interest income of $755 million for first three months of 2023
Slide 20: 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% 60.4% 74.4% • The efficiency ratio for first quarter of 2024 was 74.4% compared to 60.4% for first quarter 2023 and was primarily due to the increase in interest expense in the first three months of 2024
Slide 21: Strong Balance Sheet
Strong Balance Sheet 21
Slide 22: Asset Trends
$13,864 $18,504 $25,941 $26,635 $27,743 $27,822 $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 $698 million, or 3%, during the first three months of 2024 • Total assets grew $1.107 billion, or 4%, in 2023 • Decreased cash
Slide 23: CET 1 Capital Relative to Peers
11.00% 12.00% 13.00% CET1 12.3% 12.9% Peers Glacier • Regulatory capital CET1 ratio well above peer median 23 CET 1 Capital Relative to Peers♦ ♦ Proxy Compensation Peer Group Median as of 12/31/2023
Slide 24: Ample Liquidity of $14.6 Billion at March 31, 2024
Ample Liquidity of $14.6 Billion at March 31, 2024 • Ready access to liquidity totaling $9.7 billion • $4.9 billion in available borrowing capacity o Federal Reserve: $1.9 billion o FHLB: $2.4 billion o Correspondent banks: $0.6 billion • $4.0 billion of unpledged marketable securities • Cash of $0.
Slide 25: 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 26: Strong Core Deposit Base - Continued
Strong Core Deposit Base - Continued • Demand and savings deposit characteristics • Deposit Granularity • Retail: 655,086 accounts ; average balance = $12,055 • Commercial: 161,149 accounts ; average balance = $59,808 • Relationship Length • Weighted average relationship age is 15 years • Compositio
Slide 27: Deposit Trends
$10,776 $14,798 $21,337 $20,607 $19,929 $20,428 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 • During the first quarter 2024, total deposits increased $498 million, or 3% over 2023 • During the first quarter of 2024, core deposits grew $499 million or 3%, while brokered deposits d
Slide 28: Deposit Composition
Non- Interest Bearing 35% NOW and DDA 25% Savings 15% MMDA 17% CDs 6% Wholesale 2% 3/31/2023 Non- Interest Bearing 30% NOW and DDA 26% Savings 14% MMDA 15% CDs 15% Wholesale 0% 3/31/2024 28 Deposit Composition
Slide 29: Non-Interest Bearing Deposits
$3,697 $5,455 $7,779 $7,691 $6,023 $6,055 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 • Non-interest bearing deposits increased $32 million, or 1%, during the first quarter of 2024 • Non-interest bearing deposits decreased to 30% of total core deposits at March 31, 2024 compared to 35% at March
Slide 30: Interest-Bearing Deposit Cost Relative to Peers
0.22% 0.24% 0.15% 0.09% 0.11% 1.22% 0.81% 1.10% 0.53% 0.21% 0.58% 2.49% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% Glacier Peers • Interest-bearing deposit cost increased to 1.91% at March 31, 2024 due to market dynamics and the competitive rate environment • Total deposit costs increased to 1.34% at
Slide 31: Loan Trends
$9,513 $11,123 $13,432 $15,247 $16,198 $16,733 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 $18,000 • Gross loans increased $534 million, or 13% annualized, during first quarter of 2024 with the largest increase in commercial real estate of $369 million, or 14% annualized 3
Slide 32: 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 $272 $84 • Organic loan growth for first quarter 2024 was $84 million, or 2% annualized, compared to $272 million, or 7% annualized, for first quarter 2023 32 Organic Loan Growth (Dollars in millions)
Slide 33: Loan Composition
Residential Real Estate 10% CRE 64% Other Commercial 18% HELOC 5% Other Consumer 3% 3/31/2023 Residential Real Estate 11% CRE 64% Other Commercial 18% HELOC 5% Other Consumer 2% 3/31/2024 33 Loan Composition
Slide 34: Geographic Loan Dispersion
Montana 62% Idaho 22% Utah 2% Washington 1% Wyoming 9% Colorado 4% 12/31/2009 Montana 34% Idaho 12%Utah 15% Washington 8% Wyoming 8% Colorado 9% Arizona 9% Nevada 5% 3/31/2024 34 Geographic Loan Dispersion
Slide 35: Term CRE Portfolio Diversified and Low Risk
Term CRE Portfolio Diversified and Low Risk Portfolio • Total portfolio $6.9 billion (41% of total portfolio) • Non-owner portfolio $3.9 billion (23% of total portfolio) • $870 thousand average loan balance • 58% average LTV • 0.31% past due rate • 0.14% non-performing • $137 million non-recourse (2
Slide 36: Office CRE
Office CRE • $686 thousand average loan balance • 59% average LTV • 0.03% past due • 0.00% non-performing • 98% of loans have recourse through guaranties • Includes $145 million in medical office • 7% of office portfolio matures prior to 2026 • Limited exposure to loans above $10 million (1% of tota
Slide 37: Office CRE - Continued
Office CRE - Continued Denver $41 million Phoenix $28 million Salt Lake City $26 million Suburban/Rural $1.38 billion • Highly diversified portfolio across 8 states primarily in rural markets • Portfolio in Denver, Phoenix, and Salt Lake City represent 6% of total office (0.6% of total loans) • $15
Slide 38: Investment Portfolio Trends
$2,800 $5,528 $10,370 $9,022 $8,288 $8,081 $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 2024 at 29% of total assets compared to 32% at the end of first quarter 2023 • Investments decreased $207 million, or 3%, during firs
Slide 39: Investment Composition
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 13% 3/31/2023 US Gov't & Federal Agency 16% US Gov't Sponsored Enterprises 4% State & Local Gov'ts 22% Corporate Bonds 0% Residential MBS 45% Commercial MBS
Slide 40: Improved Credit Quality
Improved Credit Quality 40
Slide 41: NPAs to Bank Assets
0.00% 0.10% 0.20% 0.30% 0.40% 0.27% 0.19% 0.12% 0.09% 0.12% 0.09% • NPAs decreased $206 thousand during first quarter 2024 to 0.09% of Bank assets compared to the $763 thousand decrease in first quarter 2023 to 0.12% of Bank assets 41 NPAs to Bank Assets 0.26%
Slide 42: 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 42 (Dollars in millions) Other Key Model Inputs National Eco
Slide 43: 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 $5,470 $8,249 • Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will determine the future level of cr
Slide 44: Net Charge-Offs
$0 $2,500 $5,000 $7,500 $10,000 $12,500 $6,806 $7,653 $2,329 $7,815 $10,316 $1,939 $3,072 • For the first three months of 2024, net charge-offs as a percentage of total loans were 0.02% compared to 0.01% in the first three months of 2023 44 Net Charge-Offs (Dollars in thousands)
Slide 45: ACL as a Percentage of Loans
1.00% 1.25% 1.50% 1.75% 1.31% 1.42% 1.29% 1.20%1.19%1.20%1.19% • ACL was in the 48th♦ percentile of Glacier’s peer group for fourth quarter of 2023 • The ACL was 1.19% of loans at the end of first quarter 2024 compared to 1.20% at the end of first quarter 2023 • As credit trends change, expect the A
Slide 46: Shareholder Return
Shareholder Return @ Glacier Bancorp 46
Slide 47: 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, 2024, Glacier’s dividend yield was 3.30% • The Company has declared 156 consecutive quarterly dividends 47 Dividends Declared
Slide 48: Long-Term Performance Since 1984
Annual Total Return * 14.2% Annual EPS Growth Rate 7.2% Annual Dividend Growth Rate 11.7% * Reflects results through 3/31/2024, assuming no reinvestment of dividends Compounded Rates • Strong consistent performance over the past 40 years • Long-term goal is to produce double digit dividend growth 48
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