Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Investor Presentation (May 2021)
45 slides from Glacier Bancorp's investor presentation, May 5, 2021
Slide 1: Investor Presentation May 2021
INVESTOR PRESENTATION MAY 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. 3/31/2021 Snapshot
2 Glacier Bancorp, Inc. 3/31/2021 Snapshot Ticker GBCI Total Assets $19.77 billion Gross Loans $11.27 billion Deposits $16.10 billion TCBV Per Share $18.10 Quarterly Dividend $0.31 Stock Price $57.08 Market Cap $5.45 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: Recent Acquisition Highlights
5 Recent Acquisition Highlights
Slide 7: Bank Divisions Locations (as of 3/31/2021)
6 WY ID UT AZ NV WA CO MT 16 Bank Divisions 193 locations (as of 3/31/2021)
Slide 8: GBCI Geography: Total Target Banks
7 3/31/21 GBCI Geography Total chartered banks 313 Total target banks 216 Assets under $1B 186 Assets $1 – $3.5B 30
Slide 9: Solid Financial Results
mA, 7 Solid Financial Results £3 GLACIER BANCORP, INC.
Slide 10: Year Total Return 3/31/2016 – 3/31/2021
9 5 Year Total Return 3/31/2016 – 3/31/2021
Slide 11: Year Total Return 3/31/2020 – 3/31/2021
10 1 Year Total Return 3/31/2020 – 3/31/2021
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 (%) 2019 4 Glacier Bancorp Inc. 1.78 12.99 10.95 0.35 0.08 2018 16 Glacier Bancorp Inc. 1.67 13.21 9.99 0.91 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 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2016 2017 2018 2019 2020 2020 2021 $1.59 $1.75* $2.17 $2.38 $2.81 $0.46 $0.85 First quarter 2021 earnings per share of $0.85 increased $0.39 per share, or 85%, over prior year first quarter earnings per share of $0.46 First
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% 1.25% 1.73% ROA in the fourth quarter of 2020 was in the 96th♦ percentile among Glacier’s peer group Return on Assets *Non-GAAP (see reconciliation on slide 13) ♦BHCPR as of 12/31/2020
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% 12.07% 19.12% 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 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $315 $345 $433 $503 $600 $537* $627* 4.02% 4.12% 4.21% 4.39% 4.09% 4.36% 3.74% First quarter 2021 net interest income of $627 million increased $90 million, or 17%, over net interest income of $537 million for first
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% 54.7% 46.8% Excluding the impact of PPP, the efficiency ratio for 2020 would have been 53.7 percent which was driven by the increase in gain on sale of loans and increased net interest income.
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 $19,771 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 Total assets increased $1.3 billion, or 7%, during first quarter 2021 Total assets grew $4.8 billion, or 35%, in 2020, including $745 million from State Bank of Arizona (S
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 9.1% 12.4% 13.1% 15.3% 9.1% 12.4% 12.4% 14.6% Peers Glacier Total risk-based capital ranks in the 47th percentile among Glacier’s peer group Capacity to add $3.0 billion of
Slide 23: Ample Liquidity of $13.6 Billion
22 Ample Liquidity of $13.6 Billion Ready access to liquidity totaling $10.1 billion $5.3 billion in available borrowing capacity o Fed Discount Window: $1.3 billion o Fed PPP Liquidity Facility: $0.9 billion (Based on PPP loans funded as of March 31, 2020) o FHLB: $2.5 billion o Correspondent b
Slide 24: Deposit Trends
23 Deposit Trends $7,372 $7,580 $9,494 $10,776 $14,798 $16,104 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 First quarter 2021 deposits increased $1.3 billion, or 9% Growth in the number of deposit accounts has also increased significantly the past several
Slide 25: Deposit Composition
24 Deposit Composition Non- Interest Bearing 33% NOW and DDA 25% Savings 14% MMDA 18% CDs 9% Wholesale 1% 3/31/2020 Non- Interest Bearing 38% NOW and DDA 25% Savings 14% MMDA 17% CDs 6% Wholesale 0% 3/31/2021
Slide 26: Non-Interest Bearing Deposits
25 Non-Interest Bearing Deposits $2,042 $2,312 $3,001 $3,697 $5,455 $6,040 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 Non-interest bearing deposits increased $585 million, or 11%, during first quarter 2021 Non-interest bearing deposits comprise 38% of total depo
Slide 27: Deposit Costs Relative to Peers
26 Deposit Costs Relative to Peers 0.22% 0.20% 0.23% 0.11% 0.09% 0.31% 0.54% 0.79% 0.28% 0.20% 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 deposits are
Slide 28: Loan Trends
27 Loan Trends $5,684 $6,578 $8,288 $9,513 $11,123 $11,270 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 First quarter 2021 gross loans increased $147 million, or 5% annualized Gross loans increased $1.610 billion, or 17%, during 2021 Excluding PPP loans and the SBAZ acquisition,
Slide 29: Organic Loan Growth
28 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $554 $601 $728 $364 $1,158 $124 $147 Organic loan growth for first quarter 2021 was $147 million, or 5% annualized, compared to $124 million, or 5% annualized, for first quarter 2020 Organic Loan Growth (Dollars in millions)
Slide 30: Loan Composition
29 Loan Composition Residential Real Estate 10% CRE 59% Other Commerical 22% HELOC 6% Other Consumer 3% 3/31/2020 Residential Real Estate 7% CRE 57% Other Commerical 27% HELOC 6% Other Consumer 3% 3/31/2021
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 39% Idaho 15%Utah 4% Washington 7% Wyoming 8% Colorado 11% Arizona 10% Nevada 6% 3/31/2021
Slide 32: COVID-19 High Risk Industries Enhanced-Monitoring
31 COVID-19 High Risk Industries Enhanced-Monitoring Conducting ongoing portfolio reviews and monitoring for potential credit impacts from COVID-19 $15 million of modifications made in the enhanced-monitoring loan portfolio 18% of total modifications of $81 million (Dollars in Thousands) Hotel
Slide 33: COVID-19 Bank Loan Modifications
32 COVID-19 Bank Loan Modifications (Dollars in Thousands) Residential real estate 745,097$ 2,080 3,840 5,920 0.79% 4,322$ 0.54% Commercial real estate and other commercial Real estate rental and leasing 3,614,584 32,889 4,333 37,222 1.03% 43,313 1.24% Accommodation and food services 664,115 269 14,
Slide 34: Investment Portfolio Trends
33 Investment Portfolio Trends $3,101 $2,427 $2,870 $2,800 $5,528 $6,442 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 $7,000 Investment securities ended first quarter 2021 at 33% of total assets compared to 24% at the end of first quarter 2020 Investments increased $914
Slide 35: Investment Composition
34 Investment Composition US Gov't & Federal Agency 1% US Gov't Sponsored Enterprises 1% State & Local Gov'ts 40% Corporate Bonds 9% Residential MBS 22% Commercial MBS 27% 3/31/2020 US Gov't & Federal Agency 1% US Gov't Sponsored Enterprises 0% State & Local Gov'ts 24% Corporate Bonds 5% Residential
Slide 36: Improved Credit Quality
Improved Credit Quality 35 rN GLACIER BANCORP, INC.
Slide 37: NPAs to Bank Assets
36 NPAs to Bank Assets 0.00% 0.25% 0.50% 0.75% 1.00% 0.76% 0.68% 0.47% 0.27% 0.19% 0.26% 0.19% NPAs increased $1.2 million during first quarter 2021 to 0.19% of Bank assets compared to the $1.9 million increase in first quarter 2020 to 0.26% of Bank assets
Slide 38: CECL and Allowance for Credit Losses (ACL)
37 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 Other Key Model Inputs National Economic Assumptions (December 2020) 4Q20 1Q21 2Q21 2021 2022 GDP
Slide 39: Credit Loss Expense
38 Credit Loss Expense $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 $19,185 $48 Loan portfolio growth and credit quality considerations will determine the level of credit loss expense (Dollars in thousands)
Slide 40: Net Charge-Offs
39 Net Charge-Offs $0 $2,500 $5,000 $7,500 $10,000 $12,500 $2,458 $10,828 $8,282 $6,806 $7,653 $813 $2,286 First quarter 2021, net charge- offs as a percentage of total loans were 0.02% compared to 0.01% in first quarter 2020 (Dollars in thousands)
Slide 41: ACL as a Percentage of Loans
40 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% 1.49% 1.39% ACL was in the 42nd♦ percentile of Glacier’s peer group for 2020 Excluding PPP loans, the ACL was 1.51% of loans at the end of first quarter 2021 compared to 1.49% at the end of first qu
Slide 42: Shareholder Returns
Shareholder 41 “# GLACIER BANCORP, INC.
Slide 43: Dividends Declared
42 Dividends Declared At March 31, 2021, Glacier’s dividend yield was 2.17% The Company has declared 144 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 44: Long-Term Performance Since 1984
43 Long-Term Performance Since 1984 Strong consistent performance over the past 37 years Long-term goal is to produce double digit dividend growth Annual Total Return * 16.1% Annual EPS Growth Rate 11.0% Annual Dividend Growth Rate 12.4% * Reflects results through 3/31/2021, assuming no reinvest
Slide 45: Glacier Bancorp Footprint: Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada
NW Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada