Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Investor Presentation (September 2022)
42 slides from Glacier Bancorp's investor presentation, Sep 7, 2022
Slide 1: Investor Presentation As of June 30, 2022
INVESTOR PRESENTATION As of June 30, 2022
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 the Company’s plans, objectives, expectations and inten
Slide 3: Glacier Bancorp, Inc. 6/30/2022 Snapshot
2 Glacier Bancorp, Inc. 6/30/2022 Snapshot Ticker GBCI Total Assets $26.69 billion Gross Loans $14.40 billion Deposits $21.78 billion TCBV Per Share $16.83 Dividends $0.33 Stock Price $47.42 Market Cap $5.25 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: Altabancorp Acquisition Announcement
5 Altabancorp Acquisition Announcement 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 Glacie
Slide 7: Bank Divisions Locations (as of 6/30/2022)
6 WY ID UT AZ NV WA CO MT 17 Bank Divisions 224 locations (as of 6/30/2022)
Slide 8: GBCI Geography: Total Chartered Banks and Target Banks
7 6/30/22 GBCI Geography Total chartered banks 281 Total target banks 201 Assets under $1B 172 Assets $1 – $3.5B 29
Slide 9: Solid Financial Results
8 Solid Financial Results
Slide 10: Year Total Return 6/30/2017 – 6/30/2022
9 5 Year Total Return 6/30/2017 – 6/30/2022
Slide 11: Year Total Return 6/30/2021 – 6/30/2022
10 1 Year Total Return 6/30/2021 – 6/30/2022
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 (%) 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 Banc
Slide 13: Reconciliation of 2017 Non-GAAP Measures to GAAP
12 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 14: Diluted Earnings Per Share
13 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 $1.75* $2.17 $2.38 $2.81 $0.85 $0.61 $0.81 $0.69 $1.66 $1.30 The decrease in second quarter 2022 EPS over the second quarter 2021 EPS includes: $11.1 million decrease in gain on sale
Slide 15: Return on Assets
14 1.00% 1.10% 1.20% 1.30% 1.40% 1.50% 1.60% 1.70% 1.80% 1.59% 1.41%* 1.64% 1.33% 1.64% 1.11% ROA in the first quarter of 2022 was in the 51st♦ percentile among Glacier’s peer group Return on Assets *Non-GAAP (see reconciliation on slide 12) ♦BHCPR as of 3/31/2022 1.62%
Slide 16: Return on Tangible Equity
15 Return on Tangible Equity 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 19.00% 13.66%* 16.15% 16.85% 16.42% 15.49% 18.49% 15.36% The Company’s historically high capital levels have made it more difficult to produce higher ROTE * Non-GAAP (see reconciliation on slide 12)
Slide 17: Net Interest Income / Margin
16 Net Interest Income / Margin $100 $200 $300 $400 $500 $600 $700 $800 $345 $433 $503 $600 $663 $630* $764* 4.12% 4.21% 4.39% 4.09% 3.42% 3.58% 3.21% Second quarter 2022 net interest income of $764 million increased $134 million, or 21%, over net interest income of $630 million for second quarter
Slide 18: Efficiency Ratio
17 Efficiency Ratio 44.0% 46.0% 48.0% 50.0% 52.0% 54.0% 56.0% 58.0% 60.0% 53.9% 54.7% 57.8% 50.0% 51.4% 48.3% 56.4% Excluding acquisition-related expenses, the efficiency ratio would have been 54.84% for second quarter 2022 compared to 49.37% for second quarter 2021 Higher efficiency ratio drive
Slide 19: Strong Balance Sheet
SN 7 / Strong Balance Sheet ‘4 18 Reinciun BANCORP, INC.
Slide 20: Asset Trends
19 Asset Trends $9,706 $12,115 $13,684 $18,504 $25,941 $26,690 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 $26,000 $28,000 $30,000 Total assets increased $749 million, or 3%, during the first six months of 2022 Total assets grew $7.4 billion, or 40%, in 2021, including
Slide 21: Capital Ratios Relative to Peers
20 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% 12.2% 12.9% 14.7% 8.6% 12.2% 12.2% 13.9% Peers Glacier Total risk-based capital ranks in the 39th percentile among Glacier’s peer group Capacity to add $2.0 billion of
Slide 22: Ample Liquidity of $18.2 Billion
21 Ample Liquidity of $18.2 Billion Ready access to liquidity totaling $12.9 billion $5.2 billion in available borrowing capacity o Fed Discount Window: $1.8 billion o FHLB: $2.8 billion o Correspondent banks: $0.6 billion $7.3 billion of unpledged marketable securities Cash of $0.4 billion
Slide 23: Deposit Trends
22 Deposit Trends $7,580 $9,494 $10,776 $14,798 $21,337 $21,784 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 During the first six months of 2022, deposits increased $447 million, or 2% Growth in the number of deposit accounts has also increased significantly the
Slide 24: Deposit Composition
23 Deposit Composition Non- Interest Bearing 38% NOW and DDA 25% Savings 14% MMDA 18% CDs 5% Wholesale 0% 6/30/2021 Non- Interest Bearing 37% NOW and DDA 25% Savings 15% MMDA 19% CDs 4% Wholesale 0% 6/30/2022
Slide 25: Non-Interest Bearing Deposits
24 Non-Interest Bearing Deposits $2,312 $3,001 $3,697 $5,455 $7,779 $8,061 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Non-interest bearing deposits increased $282 million, or 4%, during the first six months of 2022 Non-interest bearing deposits comprise 37% of total deposits (Dollar
Slide 26: Interest-Bearing Deposit Cost Relative to Peers
25 Interest-Bearing Deposit Cost Relative to Peers 0.23% 0.22% 0.24% 0.15% 0.09% 0.10% 0.52% 0.81% 1.10% 0.53% 0.21% 0.16% 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 de
Slide 27: Loan Trends
26 Loan Trends $6,578 $8,288 $9,513 $11,123 $13,432 $14,400 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 Gross loans increased $968 million, or 15% annualized, during the first six months of 2022 Gross loans increased $2.3 billion, or 21%, during 2021 Exc
Slide 28: Organic Loan Growth
27 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $601 $728 $364 $1,158 $419 $115 $968 Excluding PPP loans, organic loan growth for the first six months of 2022 was $1.1 billion, or 17% annualized, compared to $249 million, or 10% annualized, for the first six months of 2021 Organic Loan Growth (Doll
Slide 29: Loan Composition
28 Loan Composition Residential Real Estate 6% CRE 59% Other Commerical 26% HELOC 6% Other Consumer 3% 6/30/2021 Residential Real Estate 9% CRE 65% Other Commerical 19% HELOC 5% Other Consumer 2% 6/30/2022
Slide 30: Geographic Loan Dispersion
29 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% 6/30/2022
Slide 31: Investment Portfolio Trends
30 Investment Portfolio Trends $2,427 $2,870 $2,800 $5,528 $10,370 $9,998 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 Investment securities ended second quarter 2022 at 37% of total assets compared to 35% at the end of second quarter 2021 Investments decreased
Slide 32: Investment Composition
31 Investment Composition US Gov't & Federal Agency 0% US Gov't Sponsored Enterprises 1% State & Local Gov'ts 22% Corporate Bonds 3% Residential MBS 58% Commercial MBS 16% 6/30/2021 US Gov't & Federal Agency 13% US Gov't Sponsored Enterprises 3% State & Local Gov'ts 21% Corporate Bonds 1% Residentia
Slide 33: Improved Credit Quality
32 Improved Credit Quality
Slide 34: NPAs to Bank Assets
33 NPAs to Bank Assets 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 0.68% 0.47% 0.27% 0.19% 0.26% 0.26% 0.16% NPAs decreased $23.7 million during the first six months of 2022 to 0.16% of Bank assets compared to the $17.6 million increase in the first six months of 2021 to 0.26% of B
Slide 35: CECL and Allowance for Credit Losses (ACL)
34 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 (June 2022)
Slide 36: Provision For Credit Losses
35 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 $10,824 $9,953 $57 $39,765 $23,076 -$5,653 -$1,533 Loan portfolio growth and credit quality considerations will determine the future level of credit loss expense or benefit (Do
Slide 37: Net Charge-Offs
36 Net Charge-Offs $0 $2,500 $5,000 $7,500 $10,000 $12,500 $10,828 $8,282 $6,806 $7,653 $2,329 $1,561 $2,693 For the first six months of 2022, net charge-offs as a percentage of total loans were 0.02% compared to 0.01% in the first six months of 2021 (Dollars in thousands)
Slide 38: ACL as a Percentage of Loans
37 ACL as a Percentage of Loans 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 1.97% 1.58% 1.31% 1.42% 1.29% 1.35% 1.20% ACL was in the 62nd♦ percentile of Glacier’s peer group for first quarter 2022 The ACL was 1.20% of loans at the end of second quarter 2022 compared to 1.35% at the end of second quarter
Slide 39: Shareholder Return
38 Shareholder Return
Slide 40: Dividends Declared
39 Dividends Declared At June 30, 2022, Glacier’s dividend yield was 2.78% The Company has declared 149 consecutive quarterly dividends In 2021, the Company increased its quarterly dividend by $0.09, or 7.6%, over 2020 $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 41: Long-Term Performance Since 1984
40 Long-Term Performance Since 1984 Annual Total Return * 15.2% Annual EPS Growth Rate 9.8% Annual Dividend Growth Rate 12.2% * Reflects results through 6/30/2022, assuming no reinvestment of dividends Compounded Rates Strong consistent performance over the past 38 years Long-term goal is to pro
Slide 42: y Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada
N y Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada
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