Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Investor Presentation (February 2023)
42 slides from Glacier Bancorp's investor presentation, Feb 15, 2023
Slide 1: Investor Presentation December 31, 2022
Investor Presentation December 31, 2022 Investor Slides
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. 12/31/2022 Snapshot
Glacier Bancorp, Inc. 12/31/2022 Snapshot Ticker GBCI Total Assets $26.64 billion Gross Loans $15.25 billion Deposits $20.61 billion TCBV Per Share $16.40 Dividends $1.32 Stock Price $49.42 Market Cap $5.47 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 $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 m
Slide 7: Bank Divisions and Locations
WY ID UT AZ NV WA CO MT • 17 Bank Divisions • 221 Locations (as of 12/31/2022) 7
Slide 8: GBCI Geography
12/31/22 GBCI Geography Total chartered banks 277 Total target banks 209 Assets under $1B 178 Assets $1 – $3.5B 31 8
Slide 9: Solid Financial Results
Solid Financial Results 9
Slide 10: Total Return 12/31/2017 – 12/31/2022
5 Year Total Return 12/31/2017 – 12/31/2022 10
Slide 11: Total Return 12/31/2021 – 12/31/2022
1 Year Total Return 12/31/2021 – 12/31/2022 11
Slide 12: Forbes Performance Ranking of America's Largest Banks
Forbes PERFORMANCE RANKING OF America’s 100 Largest Banks Sept 30 Rank Company Name ROTCE (%) NPAs/ Assets (%) CET1 Ratio (%) Efficiency Ratio (%) Operating Revenue Growth (%) 2021 8 Glacier Bancorp Inc. 18.5 0.29 12.2 49 10.1 2020 3 Glacier Bancorp Inc. 16.0 0.33 12.0 51 21.0 2019 9 Glacier Bancorp
Slide 13: Reconciliation of 2017 Non-GAAP Measures to GAAP
Reconciliation of 2017 Non-GAAP Measures to GAAP (Dollars in thousands, except per share data) December 31 2017 Earnings per share YTD (GAAP) 1.50$ Tax Act adjustment (GAAP) 0.25 Earnings per share YTD (non-GAAP) 1.75$ Return on assets (GAAP) 1.20% Tax Act adjustment (GAAP) 0.21% Return on assets (n
Slide 14: Diluted Earnings Per Share
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 2017 2018 2019 2020 2021 2022 $1.75* $2.17 $2.38 $0.85 $0.61 $0.81 $0.69 $0.79 $0.72 $0.46 $0.72 $2.86 $2.74 • The decrease in 2022 EPS over 2021 EPS includes: • $43.0 million decrease in g
Slide 15: Return on Assets
0.90% 1.00% 1.10% 1.20% 1.30% 1.40% 1.50% 1.60% 1.70% 2017 2018 2019 2020 2021 2022 1.59% 1.41%* 1.64% 1.33% 1.15% • ROA in the fourth quarter of 2022 was in the 47th♦ percentile among Glacier’s peer group Return on Assets *Non-GAAP (see reconciliation on slide 13) ♦BHCPR as of 12/31/2022 1.62% 15
Slide 16: Return on Tangible Equity
10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 2017 2018 2019 2020 2021 2022 13.66%* 16.15% 16.85% 16.42% 15.49% 16.59% • The Company’s historically high capital levels have made it more difficult to produce higher ROTE. Return on Tangible Equity * Non-GAAP (see reconciliation on sli
Slide 17: Net Interest Income / Margin
$100 $200 $300 $400 $500 $600 $700 $800 $900 2017 2018 2019 2020 2021 2022 $345 $433 $503 $600 $663 $788 4.12% 4.21% 4.39% 4.09% 3.42% 3.27% • 2022 net interest income of $788 million increased $125 million, or 19%, over net interest income of $663 million for 2021 • 2022 net interest margin of 3.27
Slide 18: Efficiency Ratio
44.0% 46.0% 48.0% 50.0% 52.0% 54.0% 56.0% 58.0% 60.0% 2017 2018 2019 2020 2021 2022 53.9% 54.7% 57.8% 50.0% 51.4% 54.6% • Excluding the impact from PPP loans and acquisition-related expenses, the efficiency ratio would have been 53.9% for 2022 compared to 53.1% for 2021 • Higher efficiency ratio dri
Slide 19: Strong Balance Sheet
Strong Balance Sheet 19
Slide 20: Asset Trends
$9,706 $12,115 $13,684 $18,504 $25,941 $26,635 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 $26,000 $28,000 $30,000 2017 2018 2019 2020 2021 2022 • Total assets organically increased $694 million, or 3%, during 2022 • Total assets grew $7.4 billion, or 40%, in 2021, includi
Slide 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 9.6% 11.9% 12.3% 14.2% 8.8% 12.3% 12.3% 14.0% Peers Glacier • Total risk-based capital ranks in the 52nd percentile among Glacier’s peer group • Capacity to add $2.6 billion of assets and still maintain an 8% leve
Slide 22: Ample Liquidity of $15.6 Billion
Ample Liquidity of $15.6 Billion • Ready access to liquidity totaling $10.7 billion • $4.9 billion in available borrowing capacity o Fed Discount Window: $1.6 billion o FHLB: $2.5 billion o Correspondent banks: $0.8 billion • $5.4 billion of unpledged marketable securities • Cash of $0.4 billion • A
Slide 23: Deposit Trends
$7,580 $9,494 $10,776 $14,798 $21,337 $20,607 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 2017 2018 2019 2020 2021 2022 • During 2022, deposits decreased $730 million, or 3% • Growth in the number of deposit accounts has also increased significantly the past several
Slide 24: Deposit Composition
Non- Interest Bearing 36% NOW and DDA 25% Savings 15% MMDA 19% CDs 5% Wholesale 0% 12/31/2021 Non- Interest Bearing 37% NOW and DDA 26% Savings 16% MMDA 17% CDs 4% Wholesale 0% 12/31/2022 Deposit Composition 24
Slide 25: Non-Interest Bearing Deposits
$2,312 $3,001 $3,697 $5,455 $7,779 $7,691 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 2017 2018 2019 2020 2021 2022 • Non-interest bearing deposits decreased $89 million, or 1%, during 2022 • Non-interest bearing deposits comprise 37% of total core deposits Non-Interest Bearing Deposits
Slide 26: 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 • Total deposit costs have remained stable while Glacier’s peer group costs have experienced greater volatility • Core deposits are a competitive advantage and will be a ke
Slide 27: Loan Trends
$6,578 $8,288 $9,513 $11,123 $13,432 $15,247 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 2017 2018 2019 2020 2021 2022 • Gross loans increased $1.8 billion, or 14%, during 2022 • Gross loans increased $2.3 billion, or 21%, during 2021 • Excluding PPP loans and
Slide 28: Organic Loan Growth
$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2017 2018 2019 2020 2021 2022 $601 $728 $364 $1,158 $419 $1,815 • Excluding PPP loans, organic loan growth for 2022 was $2.0 billion, or 15% annualized, compared to $1.2 billion, or 11% annualized, for 2021 (Dollars in millions) Organi
Slide 29: Loan Composition
Residential Real Estate 8% CRE 64% Other Commercial 20% HELOC 5% Other Consumer 3% 12/31/2021 Residential Real Estate 10% CRE 64% Other Commercial 18% HELOC 5% Other Consumer 3% 12/31/2022 Loan Composition 29
Slide 30: 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% 12/31/2022 Geographic Loan Dispersion 30
Slide 31: Investment Portfolio Trends
$2,427 $2,870 $2,800 $5,528 $10,370 $9,022 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 2017 2018 2019 2020 2021 2022 • Investment securities ended 2022 at 34% of total assets compared to 40% at the end of 2021 • Investments decreased $1.3 billion, or 13%, during 2
Slide 32: Investment Composition
US Gov't & Federal Agency 13% US Gov't Sponsored Enterprises 2% State & Local Gov'ts 16% Corporate Bonds 2% Residential MBS 55% Commercial MBS 12% 12/31/2021 US Gov't & Federal Agency 14% US Gov't Sponsored Enterprises 3% State & Local Gov'ts 20% Corporate Bonds 0% Residential MBS 50% Commercial MBS
Slide 33: Improved Credit Quality
Improved Credit Quality 33
Slide 34: NPAs to Bank Assets
0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 2017 2018 2019 2020 2021 2022 0.68% 0.47% 0.19% 0.26% 0.12% • NPAs decreased $34.9 million during 2022 to 0.12% of Bank assets compared to the $32.3 million increase in 2021 to 0.26% of Bank assets NPAs to Bank Assets 0.27% 34
Slide 35: 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 (Dollars in millions) Other Key Model Inputs National Economic Assumptions (December 2022) CECL and Allowance for Credit Losses (ACL
Slide 36: Provision For Credit Losses
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 2017 2018 2019 2020 2021 2022 $10,824 $9,953 $57 $39,765 $23,076 $19,963 • Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will determine
Slide 37: Net Charge-Offs
$0 $2,500 $5,000 $7,500 $10,000 $12,500 2017 2018 2019 2020 2021 2022 $10,828 $8,282 $6,806 $7,653 $2,329 $7,815 • For 2022, net charge-offs as a percentage of total loans were 0.05% compared to 0.02% in 2021 Net Charge-Offs (Dollars in thousands) 37
Slide 38: ACL as a Percentage of Loans
1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2017 2018 2019 2020 2021 2022 1.97% 1.58% 1.31% 1.42% 1.29% 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 2022 compared to 1.29% at the end of 2021 • As credit trends change, expe
Slide 39: Shareholder Return
Shareholder Return Se ae
Slide 40: 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 December 31, 2022, Glacier’s dividend yield was 2.67% • The Company has declared 151 consecutive quarterly dividends • In 2022, the Company increased its quarterly dividend by $0.05, or 3
Slide 41: Long-Term Performance Since 1984
An n u al Tota l Re tu rn * 1 5 .1 % An n u al EPS Grow th Rate 9 .8 % An n u al Div id e n d Growth Rate 1 2 .0 % * Re fle c ts re s u lts th rou gh 1 2 /3 1 /2 0 2 2 , as s u m in g n o re in ve s tm e n t o f d iv id e n d s Com p ou n d e d Ra te s • Strong consistent performance over the past 3
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