Glacier Bancorp, Inc. · NYSE:GBCI

Glacier Bancorp — Investor Presentation (February 2021)

45 slides from Glacier Bancorp's investor presentation, Feb 3, 2021

  1. Slide 1: February Investor Presentation

    FEBRUARY INVESTOR PRESENTATION February 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 12/31/2020 Snapshot

    2 Glacier Bancorp, Inc. 12/31/2020 Snapshot Ticker GBCI Total Assets $18.50 billion Gross Loans $11.12 billion Deposits $14.80 billion TCBV Per Share $18.21 Quarterly Dividend $1.33 Stock Price $46.01 Market Cap $4.39 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: Recent Acquisition Highlights

    5 Recent Acquisition Highlights

  7. Slide 7: Bank Divisions locations (as of 12/31/2020)

    6 WY ID UT AZ NV WA CO MT 16 Bank Divisions 193 locations (as of 12/31/2020)

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

    7 12/31/20 GBCI Geography Total chartered banks 314 Total target banks 217 Assets under $1B 192 Assets $1 – $3.5B 25

  9. Slide 9: Solid Financial Results

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

  10. Slide 10: Total Return 12/31/2015 – 12/31/2020

    9 5 Year Total Return 12/31/2015 – 12/31/2020

  11. Slide 11: Total Return 12/31/2019 – 12/31/2020

    10 1 Year Total Return 12/31/2019 – 12/31/2020

  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 (%) 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

  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 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2015 2016 2017 2018 2019 2020 $1.54 $1.59 $1.75* $2.17 $0.58 $0.46 $0.61 $0.66 $0.57 $0.81 $0.62 $0.86 $2.38  2020 earnings per share of $2.81 increased $0.43 per share, or 18%, over prior year earnings per share of $2.38  202

  16. Slide 16: Return on Assets

    15 1.15% 1.25% 1.35% 1.45% 1.55% 1.65% 2015 2016 2017 2018 2019 2020 1.36% 1.32% 1.41%* 1.59% 1.64% 1.62%  ROA in the third quarter of 2020 was in the 94th♦ percentile among Glacier’s peer group Return on Assets *Non-GAAP (see reconciliation on slide 13) ♦BHCPR as of 9/30/2020

  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% 2015 2016 2017 2018 2019 2020 12.71% 12.71% 13.66%* 16.42% 16.15% 16.85%  The Company’s historically high capital levels have made it more difficult to produce higher ROTE *Non-GAAP (see reconciliation on sl

  18. Slide 18: Net Interest Income / Margin

    17 Net Interest Income / Margin $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 2015 2016 2017 2018 2019 2020 $290 $315 $345 $433 $503 $600 4.00% 4.02% 4.12% 4.21% 4.39% 4.09%  2020 net interest income of $600 million increased $97 million, or 19%, over net interest income of $503 million for 201

  19. Slide 19: Efficiency Ratio

    18 Efficiency Ratio 49.0% 50.0% 51.0% 52.0% 53.0% 54.0% 55.0% 56.0% 57.0% 58.0% 59.0% 60.0% 2015 2016 2017 2018 2019 2020 55.4% 55.9% 53.9% 54.7% 57.8% 50.0%  The efficiency ratio improvement in 2020 was driven primarily by the combined increases in gain on sale of loans and net interest income tha

  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 $9,089 $9,451 $9,706 $12,115 $13,684 $18,504 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 $18,000 $19,000 $20,000 2015 2016 2017 2018 2019 2020  Total assets increased $4.8 billion, or 35%, during 2020, including $745 million from State Bank of Arizona  To

  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% 12.3% 13.0% 15.1% 9.5% 12.5% 12.5% 14.8% Peers Glacier  Total risk-based capital ranks in the 53rd percentile among Glacier’s peer group  Capacity to add $3.0 billion of

  23. Slide 23: Ample Liquidity of $12.2 Billion

    22 Ample Liquidity of $12.2 Billion  Ready access to liquidity totaling $9.0 billion  $5.1 billion in available borrowing capacity o Fed Discount Window: $1.2 billion o Fed PPP Liquidity Facility: $0.9 billion (Based on PPP loans funded as of December 31, 2020) o FHLB: $2.4 billion o Correspondent

  24. Slide 24: Deposit Trends

    23 Deposit Trends $6,945 $7,372 $7,580 $9,494 $10,776 $14,798 $6,500 $7,500 $8,500 $9,500 $10,500 $11,500 $12,500 $13,500 $14,500 $15,500 2015 2016 2017 2018 2019 2020  During 2020 deposits increased $4.0 billion, or 37%, including $603 million from State Bank of Arizona  Organic deposit growth du

  25. Slide 25: Deposit Composition

    24 Deposit Composition Non- Interest Bearing 34% NOW and DDA 25% Savings 14% MMDA 18% CDs 9% Wholesale 0% 12/31/2019 Non- Interest Bearing 37% NOW and DDA 25% Savings 13% MMDA 18% CDs 7% Wholesale 0% 12/31/2020

  26. Slide 26: Non-Interest Bearing Deposits

    25 Non-Interest Bearing Deposits $1,918 $2,042 $2,312 $3,001 $3,697 $5,455 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 2015 2016 2017 2018 2019 2020  Non-interest bearing deposits increased $1.8 billion, or 48%, during 2020, including $142 million from State Bank of Arizon

  27. 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

  28. Slide 28: Loan Trends

    27 Loan Trends $5,079 $5,684 $6,578 $8,288 $9,513 $11,123 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 2015 2016 2017 2018 2019 2020  Gross loans increased $1.610 billion, or 17%, during 2020 including $452 million from State Bank of Arizona  Excluding $909.2 million of PPP lo

  29. Slide 29: Organic Loan Growth

    28 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2015 2016 2017 2018 2019 2020 $346 $554 $601 $728 $364 $1,158  Organic loan growth for 2020 was $1.158 billion, or 12%, compared to $364 million, or 4%, for 2019 Organic Loan Growth (Dollars in millions)

  30. Slide 30: Loan Composition

    29 Loan Composition Residential Real Estate 10% CRE 59% Other Commerical 22% HELOC 6% Other Consumer 3% 12/31/2019 Residential Real Estate 7% CRE 57% Other Commerical 27% HELOC 6% Other Consumer 3% 12/31/2020

  31. Slide 31: Geographic Loan Dispersion

    30 Geographic Loan Dispersion 12/31/202012/31/2009

  32. 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  $23 million of modifications made in the enhanced-monitoring loan portfolio  25% of total modifications of $95 million (Dollars in Thousands) Hotel

  33. Slide 33: COVID-19 Bank Loan Modifications

    32 COVID-19 Bank Loan Modifications (Dollars in Thousands) Residential real estate 802,508$ 4,322 - 4,322 0.54% 28,571$ 3.31% Commercial real estate and other commercial Real estate rental and leasing 3,484,537 39,329 3,984 43,313 1.24% 206,838 6.15% Accommodation and food services 657,770 8,151 13,

  34. Slide 34: Investment Portfolio Trends

    33 Investment Portfolio Trends $3,313 $3,101 $2,427 $2,870 $2,800 $5,528 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 2015 2016 2017 2018 2019 2020  Investment securities ended 2020 at 30% of total assets compared to 20% at year end 2019  Investments increased $2.728 billion, or

  35. Slide 35: Investment Composition

    34 Investment Composition US Gov't & Federal Agency 1% US Gov't Sponsored Enterprises 1% State & Local Gov'ts 33% Corporate Bonds 6% Residential MBS 26% Commercial MBS 33% 12/31/2019 US Gov't & Federal Agency 1% US Gov't Sponsored Enterprises 0% State & Local Gov'ts 29% Corporate Bonds 6% Residentia

  36. Slide 36: Improved Credit Quality

    Improved Credit Quality 35 rN GLACIER BANCORP, INC.

  37. Slide 37: NPAs to Bank Assets

    36 NPAs to Bank Assets 0.00% 0.25% 0.50% 0.75% 1.00% 2015 2016 2017 2018 2019 2020 0.88% 0.76% 0.68% 0.47% 0.27% 0.19%  NPAs decreased $2 million during 2020 to 0.19% of Bank assets compared to the $19 million decrease in 2019 to 0.27% of Bank assets

  38. Slide 38: CECL and Allowance for Credit Losses

    37 CECL and Allowance for Credit Losses (ACL) (Dollars in millions)  Commercial Asset Quality Ratings  Consumer Loan Past Due Status  Additional Qualitative Adjustments  Prepayment Assumptions Other Key Model Inputs National Economic Assumptions (December 2020) 3Q20 4Q20 1Q21 2021 2022 GDP Chang

  39. 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 2015 2016 2017 2018 2019 2020 $2,284 $2,333 $10,824 $9,953 $57 $37,637 $2,128  Loan portfolio growth and credit quality considerations will determine the level of credit loss expense (Dollars in thousan

  40. Slide 40: Net Charge-Offs

    39 Net Charge-Offs $0 $2,500 $5,000 $7,500 $10,000 $12,500 2015 2016 2017 2018 2019 2020 $2,340 $2,458 $10,828 $8,282 $6,806 $7,653  For 2020, net charge-offs as a percentage of total loans were 0.07% which was the same for 2019 (Dollars in thousands)

  41. 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% 2.75% 3.00% 2015 2016 2017 2018 2019 2020 2.55% 2.28% 1.97% 1.58% 1.31% 1.42%  ACL was in the 43rd♦ percentile of Glacier’s peer group for 2020  Excluding PPP loans, the ACL was 1.55% of loans at year end 2020 compared to 1.31% at

  42. Slide 42: Shareholder

    Shareholder 41 “# GLACIER BANCORP, INC.

  43. Slide 43: Dividends Declared

    42 Dividends Declared  At December 31, 2020, Glacier’s dividend yield was 2.56%  The Company has declared 143 consecutive quarterly dividends  In 2020, the Company increased its quarterly dividend by $0.07, or 6.3%, over 2019 $0.45 $0.50 $0.55 $0.60 $0.65 $0.70 $0.75 $0.80 $0.85 $0.90 $0.95 $1.00

  44. Slide 44: Long-Term Performance Since 1984

    43 Long-Term Performance Since 1984  Strong consistent performance over the past 36 years  Long-term goal is to produce double digit dividend growth Annual Total Return * 15.7% Annual EPS Growth Rate 10.5% Annual Dividend Growth Rate 12.2% * Reflects results through 12/31/2020, assuming no reinves

  45. Slide 45: NW Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada

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

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