Glacier Bancorp, Inc. · NYSE:GBCI

Glacier Bancorp — Investor Presentation (November 2021)

43 slides from Glacier Bancorp's investor presentation, Nov 17, 2021

  1. Slide 1: Investor Presentation November 17, 2021

    INVESTOR PRESENTATION November 17, 2021

  2. 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

  3. Slide 3: Glacier Bancorp, Inc. 9/30/2021 Snapshot

    2 Glacier Bancorp, Inc. 9/30/2021 Snapshot Ticker GBCI Total Assets $21.31 billion Gross Loans $11.29 billion Deposits $17.50 billion TCBV Per Share $19.11 Quarterly Dividend $0.32 Stock Price $55.35 Market Cap $5.29 billion

  4. 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

  5. Slide 5: Glacier is a "Company of Banks"

    4 Glacier is a “Company of Banks”

  6. Slide 6: Altabancorp Acquisition Highlights

    5 Altabancorp Acquisition Highlights Pro Forma Utah Branch Footprint ALTA Branches FCB Branches  Largest community bank headquartered in Utah, with $3.5 billion in assets  Transaction is consistent with Glacier’s targeted financial metrics and focused M&A strategy  Solidifies and ensures Glacier’

  7. Slide 7: Bank Divisions locations

    6 WY ID UT AZ NV WA CO MT 17 Bank Divisions 225 locations (as of 10/01/2021)

  8. Slide 8: GBCI Geography: Total chartered banks and target banks

    7 6/30/21 GBCI Geography Total chartered banks 311 Total target banks 216 Assets under $1B 187 Assets $1 – $3.5B 29

  9. Slide 9: Solid Financial Results

    mA, 7 Solid Financial Results £3 GLACIER BANCORP, INC.

  10. Slide 10: Total Return 9/30/2016 – 9/30/2021

    9 5 Year Total Return 9/30/2016 – 9/30/2021

  11. Slide 11: Total Return 9/30/2020 – 9/30/2021

    10 1 Year Total Return 9/30/2020 – 9/30/2021

  12. 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

  13. 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 (%) 2020 4 Glacier Bancorp Inc. 1.69 12.68 9.69 0.30 0.07 2019 4 Glacier Bancorp Inc. 1.78 12.99 10.95 0.35 0.

  14. 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

  15. Slide 15: 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 $1.59 $1.75* $2.17 $2.38 $2.81 $0.46 $0.85 $0.66 $0.81 $0.81 $0.79 $1.95  Third quarter 2021 earnings per share of $0.79 decreased $0.02 per share, or -2%, over prior year third quarter

  16. Slide 16: Return on Assets

    15 1.15% 1.25% 1.35% 1.45% 1.55% 1.65% 1.75% 1.32% 1.59% 1.41%* 1.64% 1.62% 1.56% 1.57%  ROA in the third quarter of 2021 was in the 76th♦ percentile among Glacier’s peer group Return on Assets *Non-GAAP (see reconciliation on slide 13) ♦BHCPR as of 6/30/2021

  17. 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% 12.71% 16.15% 13.66%* 16.42% 16.85% 15.90% 17.88%  The Company’s historically high capital levels have made it more difficult to produce higher ROTE * Non-GAAP (see reconciliation on slide 13)

  18. Slide 18: Net Interest Income / Margin

    17 Net Interest Income / Margin $100 $200 $300 $400 $500 $600 $700 $800 $315 $345 $433 $503 $600 $580* $635* 4.02% 4.12% 4.21% 4.39% 4.09% 4.12% 3.52%  Third quarter 2021 net interest income of $635 million increased $55 million, or 10%, over net interest income of $580 million for third quarter 20

  19. 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% 49.8% 48.9%  Excluding the impact of PPP, the efficiency ratio would be 53.6 percent for the third quarter 2021 and 50.5 percent for the third quarter of 2020  Excluding the impact of PPP, the e

  20. Slide 20: Strong Balance Sheet

    AIA, 7 Strong Balance Sheet 4 19 AN GLACIER BANCORP, ING.

  21. Slide 21: Asset Trends

    20 Asset Trends $9,451 $9,706 $12,115 $13,684 $18,504 $21,314 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000  Total assets increased $2.8 billion, or 15%, during the first nine months of 2021  Total assets grew $4.8 billion, or 35%, in 2020, including $745 million from the

  22. 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% 12.7% 13.5% 15.4% 8.8% 12.5% 12.5% 14.5% Peers Glacier  Total risk-based capital ranks in the 36th percentile among Glacier’s peer group  Capacity to add $2.0 billion of

  23. Slide 23: Ample Liquidity of $14.6 Billion

    22 Ample Liquidity of $14.6 Billion  Ready access to liquidity totaling $11.0 billion  $4.8 billion in available borrowing capacity o Fed Discount Window: $1.4 billion o FHLB: $2.8 billion o Correspondent banks: $0.6 billion  $5.9 billion of unpledged marketable securities  Cash of $0.3 billion

  24. Slide 24: Deposit Trends

    23 Deposit Trends $7,372 $7,580 $9,494 $10,776 $14,798 $17,503 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000  Deposits increased $2.7 billion, or 18%, during the first nine months of 2021  Growth in the number of deposit accounts has also increased significantly the past several ye

  25. Slide 25: Deposit Composition

    24 Deposit Composition Non- Interest Bearing 38% NOW and DDA 23% Savings 13% MMDA 18% CDs 7% Wholesale 1% 9/30/2020 Non- Interest Bearing 38% NOW and DDA 25% Savings 14% MMDA 18% CDs 5% Wholesale 0% 9/30/2021

  26. Slide 26: Non-Interest Bearing Deposits

    25 Non-Interest Bearing Deposits $2,042 $2,312 $3,001 $3,697 $5,455 $6,632 $1,500 $2,500 $3,500 $4,500 $5,500 $6,500 $7,500  Non-interest bearing deposits increased $1.177 million, or 22%, during the first nine months of 2021  Non-interest bearing deposits comprise 38% of total deposits (Dollars i

  27. Slide 27: Deposit Costs Relative to Peers

    26 Deposit Costs Relative to Peers 0.22% 0.20% 0.23% 0.14% 0.07%0.06% 0.31% 0.54% 0.79% 0.37% 0.15% 0.13% 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 d

  28. Slide 28: Loan Trends

    27 Loan Trends $5,684 $6,578 $8,288 $9,513 $11,123 $11,294 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000  During the first nine months 2021, gross loans excluding PPP loans increased $711 million, or 9% annualized  Excluding PPP loans, gross loans increased $382 million, or 14

  29. Slide 29: Organic Loan Growth

    28 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $554 $601 $728 $364 $1,158 $1,654 $171  Organic loan growth excluding PPP loans for third quarter 2021 was $382 million, or 14% annualized, compared to $144 million, or 6% annualized, for third quarter 2020  Organic loan growth ex

  30. Slide 30: Loan Composition

    29 Loan Composition Residential Real Estate 7% CRE 53% Other Commerical 31% HELOC 6% Other Consumer 3% 9/30/2020 Residential Real Estate 7% CRE 61% Other Commerical 23% HELOC 6% Other Consumer 3% 9/30/2021

  31. 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 40% Idaho 15% Utah 3% Washington 7% Wyoming 8% Colorado 11% Arizona 10% Nevada 6% 9/30/2021

  32. Slide 32: Investment Portfolio Trends

    31 Investment Portfolio Trends $3,101 $2,427 $2,870 $2,800 $5,528 $8,519 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000  Investment securities ended third quarter 2021 at 40% of total assets compared to 24% at the end of third quarter 2020  Investments increased $2.991 bill

  33. Slide 33: Investment Composition

    32 Investment Composition US Gov't & Federal Agency 1%US Gov't Sponsored Enterprises 0% State & Local Gov'ts 34% Corporate Bonds 8% Residential MBS 30% Commercial MBS 27% 9/30/2020 US Gov't & Federal Agency 0% US Gov't Sponsored Enterprises 1% State & Local Gov'ts 19% Corporate Bonds 2% Residential

  34. Slide 34: Improved Credit Quality

    Improved Credit Quality 33 rN GLACIER BANCORP, INC.

  35. Slide 35: NPAs to Bank Assets

    34 NPAs to Bank Assets 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 0.76% 0.68% 0.47% 0.27% 0.19% 0.25% 0.24%  NPAs increased $15.7 million during the first nine months of 2021 to 0.24% of Bank assets compared to the $7.2 million increase in the first nine months of 2020 to 0.25% of

  36. Slide 36: CECL and Allowance for Credit Losses (ACL)

    35 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  Historical Loss Period Capture Other Key Model Inputs National Economic Assumptions (September

  37. Slide 37: Provision For Credit Losses

    36 Provision For Credit Losses -$10,000 -$5,000 $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 $41,300 -$4,880  The third quarter 2021 credit loss benefit related to improvement in the economic forecasts  Loan portfolio growth and credit

  38. Slide 38: Net Charge-Offs

    37 Net Charge-Offs $0 $2,500 $5,000 $7,500 $10,000 $12,500 $2,458 $10,828 $8,282 $6,806 $7,653 $2,872 $1,713  For the first nine months of 2021, net charge-offs as a percentage of total loans were 0.02% compared to 0.03% in the first nine months of 2020 (Dollars in thousands)

  39. Slide 39: ACL as a Percentage of Loans

    38 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% 1.42% 1.36%  ACL was in the 52nd♦ percentile of Glacier’s peer group for second quarter 2021  Excluding PPP loans, the ACL was 1.40% of loans at the end of third quarter 2021 compared to 1.62% at the

  40. Slide 40: Shareholder

    Shareholder 39 “# GLACIER BANCORP, INC.

  41. Slide 41: Dividends Declared

    40 Dividends Declared  At September 30, 2021, Glacier’s dividend yield was 2.31%  The Company has declared 146 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 $1.0

  42. Slide 42: Long-Term Performance Since 1984

    41 Long-Term Performance Since 1984  Strong consistent performance over the past 38 years  Long-term goal is to produce double digit dividend growth Annual Total Return * 15.8% Annual EPS Growth Rate 10.7% Annual Dividend Growth Rate 12.4% * Reflects results through 9/30/2021, assuming no reinvest

  43. Slide 43: Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada

    NW Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada

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