Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Investor Presentation (November 2020)
45 slides from Glacier Bancorp's investor presentation, Nov 12, 2020
Slide 1: Investor Presentation November 2020
INVESTOR PRESENTATION November 2020
Slide 2: Forward-Looking Statements
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 intenti
Slide 3: Glacier Bancorp 9/30/2020 Snapshot
Glacier Bancorp, Inc. 9/30/2020 Snapshot Ticker GBCI Total Assets $17.93 billion Gross Loans $11.62 billion Deposits $14.30 billion TCBV Per Share $17.64 Quarterly Dividend $0.30 Stock Price $32.05 Market Cap $3.06 billion 2
Slide 4: Differentiated Bank Model
Differentiated Bank Model Genuine community banking model Backed by resources and support of Glacier Bancorp Strategy of growth through acquisitions and organically 3
Slide 5: Glacier is a “Company of Banks”
Glacier is a “Company of Banks” 4
Slide 6: 2019 Announced Acquisition Highlights
2019 Announced Acquisition Highlights Announcement Date 1/16/2019 4/3/2019 9/30/2019 Closing Date 4/30/2019 7/31/2019 2/29/2020 Transaction Overview Transaction Value ($million) $85.0 million $240.7 million $135.3 million Consideration Mix 100% Stock 93% Stock / 7% Cash 90% Stock / 10% Cash Transact
Slide 7: Bank Divisions locations
WA MT ID WY NV UT CO AZ 16 Bank Divisions 193 locations (as of 9/30/2020) 6
Slide 8: GBCI Geography: Target Banks
9/30/20 GBCI Geography Total chartered banks 314 Total target banks 215 Assets under $1B 188 Assets $1 – $3.5B 27 7
Slide 9: Solid Financial Results
Solid Financial Results 8
Slide 10: Total Return 9/30/2015 – 9/30/2020
5 Year Total Return 9/30/2015 – 9/30/2020 9
Slide 11: Total Return 9/30/2019 – 9/30/2020
1 Year Total Return 9/30/2019 – 9/30/2020 10
Slide 12: Forbes Performance Ranking of America’s Largest Banks
Forbes PERFORMANCE RANKING OF America’s 100 Largest Banks NP As/ CET1 Efficiency Operating ROTCE Assets Ratio Ratio Revenue Sept 30 Rank Company Name (%) (%) (%) (%) Grow th (%) 2019 9 Glacier Bancorp Inc. 16.8 0.57 12.6 58 14.0 2018 16 Glacier Bancorp Inc. 14.0 0.79 12.3 55 17.5 2017 10 Glacier Ban
Slide 13: Bank Director Bank Performance Scorecard
Bank Director BANK PERFORMANCE SCORECARD $5 Billion up to $50 Billion Core Core TCE/ NP As/ NCOs/ Year ROAA ROAE Tang Assets Loans & Avg Loans Ending Rank Company Name (%) (%) (%) REO (%) (%) 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 0.1
Slide 14: Reconciliation of 2017 Non-GAAP Measures to GAAP
Reconciliation of 2017 Non-GAAP Measures to GAAP December 31 In addition to the results presented in accordance with accounting (Dollars in thousands, except per share data) 2017 principles generally accepted in the United States of America (“GAAP”), this presentation contains certain non-GAAP finan
Slide 15: Diluted Earnings Per Share
Diluted Earnings Per Share $2.17 $2.38 $2.20 Third quarter 2020 earnings per share decreased $0.24 per share, $2.00 $1.95 or 42%, over prior year third $1.75* $1.76 $1.80 $1.59 quarter $1.54 $1.60 $0.81 $1.40 $0.57 First nine months of 2020 $1.20 earnings includes: $1.00 $0.66 . Credit loss expe
Slide 16: Return on Assets
Return on Assets 1.64% 1.65% 1.63% 1.59% 1.56% 1.55% ROA in the second quarter of th♦ 1.45% 1.41%* 2020 was in the 94 percentile among Glacier’s peer group 1.36% 1.35% 1.32% 1.25% 1.15% *Non-GAAP (see reconciliation on slide 13) ♦BHCPR as of 6/30/2020 15
Slide 17: Return on Tangible Equity
Return on Tangible Equity 18.00% 16.42% 17.00% 16.15% 16.08% 15.90% 16.00% 15.00% We maintain historically high capital levels which have made it 14.00% 13.66%* more difficult to produce higher 12.71% 13.00% 12.71% ROTE 12.00% 11.00% 10.00% *Non-GAAP (see reconciliation on slide 13) 16
Slide 18: Net Interest Margin
Net Interest Margin $600 $580* $550 $503 $491* $500 First nine months of 2020 net $433 $450 interest margin of 4.12% 4.39% $400 decreased 24 basis points over 4.36% $345 the net interest margin of 4.36% $350 for the first nine months of 2019 $315 4.21% $290 4.12% $300 4.12% 4.02% $250 4.00% $200 (
Slide 19: Efficiency Ratio
Efficiency Ratio 60.0% First nine months of 2020 efficiency 58.8% 59.0% ratio improvement was driven by 57.8% 58.0% increases in gain on sale of loans 57.0% and commercial loan interest 55.9% income that more than offset the 56.0% 55.4% 54.7% decreases in service fee income 55.0% 53.9% from the Du
Slide 20: Strong Balance Sheet
4 Strong Balance Sheet 4 19 rN GLACIER BANCORP, INC.
Slide 21: Asset Trends
Asset Trends $19,000 $17,926 Total assets increased $4.2 billion, $18,000 or 31%, in the first nine months of $17,000 2020, including $744 million from $16,000 State Bank of Arizona $15,000 $14,000 $13,684 Total assets grew $1.6 billion, or 13%, in 2019, including $379 $13,000 $12,115 million fr
Slide 22: Capital Ratios Relative to Peers
Capital Ratios Relative to Peers♦ 18.00% 14.8% 14.7% Total risk based capital ranks in 15.00% th 12.7% the 57 percentile among 12.4% 12.4% 12.0% Glacier’s peer group 12.00% 9.7% 9.0% 9.00% Capacity to add $3.2 billion of assets and still maintain an 8% 6.00% leverage ratio 3.00% 0.00% Tier 1 CET
Slide 23: Ample Liquidity of $12.4 Billion
Ample Liquidity of $12.4 Billion Ready access to liquidity totaling $8.9 billion . $5.9 billion in available borrowing capacity o Fed Discount Window: $1.3 billion o Fed PPP Liquidity Facility: $1.4 billion (Based on PPP loans funded as of September 30, 2020) o FHLB: $2.6 billion o Correspondent b
Slide 24: Deposit Trends
Deposit Trends $15,500 First nine months of 2020 deposits $14,300 $14,500 increased $3.5 billion, or 33%, including $603 million from State $13,500 Bank of Arizona $12,500 Organic deposit growth for the first $11,500 $10,776 nine months of 2020 was $2.9 $10,500 billion, or 27% $9,494 $9,500 Gr
Slide 25: Deposit Composition
Deposit Composition 9/30/2019 9/30/2020 Wholesale Wholesale CDs 1% CDs 1% 9% 7% Non-Interest MMDA Non-Interest MMDA Bearing 18% Bearing 18% 38% 35% Savings Savings 13% 13% NOW and DDA NOW and 24% DDA 23% 24
Slide 26: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits $5,479 $5,500 Non-interest bearing deposits $5,000 increased $1.8 billion, or 48%, during first the first nine months of $4,500 2020, including $142 million from $4,000 State Bank of Arizona $3,697 $3,500 Non-interest bearing deposits $3,001 comprise 38% of total de
Slide 27: Deposit Costs Relative to Peers
Deposit Costs Relative to Peers 0.90% Total deposit costs have remained 0.79% 0.80% stable while Glacier’s peer group costs have experienced greater 0.70% volatility 0.60% 0.54% 0.50% Core deposits are a competitive advantage and will be a key driver 0.40% of future performance 0.31% 0.35% 0.30%
Slide 28: Loan Trends
Loan Trends $13,000 First nine months of 2020 gross $11,619 $12,000 loans increased $2.106 billion, or $11,000 22%, including $452 million from State Bank of Arizona $10,000 $9,513 $9,000 $8,288 Excluding $1.448 billion of PPP $8,000 loans, the loan portfolio increased $143.7 million, or 143 bas
Slide 29: Organic Loan Growth
Organic Loan Growth $1,800 $1,654 $1,600 $1,400 Organic loan growth for the first $1,200 nine months of 2020 was $1.654 $1,000 billion, or 23% annualized, compared to $393 million, or 6% $800 $728 $601 annualized, for the first nine $554 $600 months of 2019 $393 $346 $364 $400 $200 $0 (Dollars in
Slide 30: Loan Composition
Loan Composition 9/30/2019 9/30/2020 Other Other Commerical Commerical 31% 23% CRE 58% CRE 53% HELOC HELOC 6% 6% Other Other Consumer Consumer 3% Residential 3% Residential Real Estate Real Estate 10% 7% 29
Slide 31: Geographic Loan Dispersion
Geographic Loan Dispersion 2009 9/30/2020 Nevada 7% Arizona 10% Montana 38% Colorado 12% Wyoming 7% Uta Washington 6% h Idaho 16% 4% 30
Slide 32: COVID-19 High Risk Industries
COVID-19 High Risk Industries Enhanced-Monitoring September 30, 2020 June 30, 2020 Loan Loan Modifications Modifications (Amount) as a (Amount) as a Percent of Percent of Enhanced Enhanced Enhanced Monitoring Percent of Amount of Monitoring Percent of Monitoring Loans Total Loans Unexpired Amount of
Slide 33: COVID-19 Bank Loan Modifications
COVID-19 Bank Loan Modifications September 30, 2020 June 30, 2020 Loan Loan Modifications Modifications (Amount) as a (Amount) as a Amount of Percent of Percent of Total Loans Unexpired Amount of Amount of Total Loans Amount of Total Loans Receivable, Original Re-deferral Remaining Receivable, Remai
Slide 34: Investment Portfolio Trends
Investment Portfolio Trends $5,000 First nine months of 2020 investment securities made up 24% $4,500 $4,319 of total assets $4,000 Investments increased $1.519 billion in the first nine months of $3,500 $3,313 2020 $3,101 $3,000 $2,870 Our long-term goal is to maintain $2,800 investment secur
Slide 35: Investment Composition
Investment Composition 9/30/2019 9/30/2020 Residential MBS Residential MBS 29% 30% Commercial Commercial MBS MBS 27% Corporate Bonds 27% 5% Corporate Bonds 8% US Gov't & State & Local US Gov't & Federal Agency US Gov't Gov'ts US Gov't Federal Agency 5% Sponsored Sponsored State & Local 1% 32% Enterp
Slide 36: Improved Credit Quality
Improved Credit Quality 35
Slide 37: NPAs to Bank Assets
NPAs to Bank Assets 1.25% 1.00% 0.88% 0.76% 0.75% 0.68% NPAs increased $7.2 million year- 0.47% to-date 2020, compared to the 2019 0.50% 0.40% year-to-date decrease of $1.7 million 0.27% 0.25% 0.25% 0.00% 36
Slide 38: CECL and Allowance for Credit Losses
CECL and Allowance for Credit Losses (ACL) National Economic Assumptions (September 2020) 2Q20 3Q20 4Q20 2021 2022 GDP Change -9.1% 7.3% 1.1% 2.9% 2.6% Unemployment Rate 13.0% 9.0% 7.8% 6.9% 5.5% Other Key Model Inputs Commercial Asset Quality Ratings Consumer Loan Past Due Status Additional Q
Slide 39: Credit Loss Expense
Credit Loss Expense $45,000 $39,165 $40,000 $35,000 $30,000 $25,000 Loan portfolio growth and credit quality considerations will determine $20,000 the level of credit loss expense $15,000 $10,824 $9,953 $10,000 $2,333 $5,000 $2,284 $57 $57 $0 (Dollars in thousands) 38
Slide 40: Net Charge-Offs
Net Charge-Offs $15,000 $12,500 $10,828 $10,000 First nine months of 2020 net charge- $8,282 offs as a percent of total loans were $7,500 $6,806 0.03% compared to 0.06% for first $5,761 nine months of 2019 $5,000 $2,458 $2,872 $2,340 $2,500 $0 (Dollars in thousands) 39
Slide 41: ACL as a Percent of Loans
ACL as a Percent of Loans 3.00% ACL was 419% of non-performing 2.75% 2.55% loans at the end of the first nine months of 2020 compared to 262% 2.50% 2.28% at the end of the first nine months of 2019 2.25% 1.97% 2.00% ACL was in the 50th♦ percentile of Glacier’s peer group for the first 1.75% 1.58
Slide 42: Shareholder Return
Shareholder Return 41 AN 31
Slide 43: Dividends Declared
Dividends Declared $1.20 $1.15 At September 30, 2020, Glacier’s $1.10 dividend yield was 3.67% $1.05 $1.00 The Company has declared 142 $0.95 consecutive quarterly dividends $0.90 $0.85 In 2019, the Company increased $0.80 its quarterly dividend by $0.10, or $0.75 10%, over 2018 $0.70 $0.65 $0
Slide 44: Long-Term Performance Since 1984
Long-Term Performance Since 1984 Compounded Rates Strong consistent performance over the past 36 years Annual Total Return * 15.0% Long-term goal is to produce double Annual EPS Growth Rate 10.3% digit dividend growth Annual Dividend Growth Rate 12.3% * Reflects results through 9/30/2020, assumi
Slide 45: Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada
Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada
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