Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Investor Presentation (November 2024)
50 slides from Glacier Bancorp's investor presentation, Nov 19, 2024
Slide 1: Investor Presentation September 30, 2024
Investor Presentation September 30, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains 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 intentions
Slide 3: Glacier Bancorp 9/30/2024 Snapshot
Glacier Bancorp, Inc. 9/30/2024 Snapshot Ticker GBCI Total Assets $28.21 billion Gross Loans $17.18 billion Deposits $20.71 billion TCBV Per Share $18.86 Dividends $0.33 Stock Price $45.70 Market Cap $5.18 billion 3
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 4
Slide 5: Glacier is a "Company of Banks"
Glacier is a “Company of Banks” 5
Slide 6: Acquisition - Community Financial Group, Inc.
Acquisition - Community Financial Group, Inc. • A new bank division, Wheatland Bank, was formed upon combining with the North Cascades Bank division • Established a market-leading Eastern Washington franchise • The acquisition was consistent with Glacier’s long-term strategy of buying good banks in
Slide 7: Acquisition - Community Financial Group, Inc. fair value estimates
Acquisition - Community Financial Group, Inc. 7 * Excludes $2.34 million of Loans Held for Sale Total assets $777,659 Cash and cash equivalents 12,926 Debt securities 187,183 Loans receivable * 450,403 Non-interest bearing deposits 277,651 Interest bearing deposits 339,304 Borrowings 58,500 Core Dep
Slide 8: Acquisition - Six Montana Branches of HTLF Bank
Acquisition - Six Montana Branches of HTLF Bank 8 • On July 19, 2024, Glacier Bank completed the acquisition of six Montana branch locations of the Rocky Mountain Bank division of HTLF Bank, a wholly owned subsidiary of Heartland Financial USA, Inc. • The six branches Glacier Bank will acquire are l
Slide 9: Acquisition - Six Montana Branches
Acquisition – Six Montana Branches 9 Total assets $403,052 Cash and cash equivalents 76,781 Debt securities - Loans receivable 271,569 Non-interest bearing deposits 93,534 Interest bearing deposits 303,156 Borrowings 4,305 Core Deposit Intangible 9,794 Goodwill 29,794 Fair Value Estimates of Select
Slide 10: Bank Divisions and Locations
WY ID UT AZ NV WA CO MT • 17 Bank Divisions • 232 Locations (as of 9/30/2024) 10
Slide 11: GBCI Acquisition History 2013 through 9/30/2024
$7.9 $8.3 $9.1 $9.5 $9.7 $12.1 $13.7 $18.5 $25.9 $26.6 $27.7 $28.2 $- $5 $10 $15 $20 $25 $30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 9/30/2024 Total Assets ($B) Acquisitions July 2024 Six Montana Branches GBCI Acquisition History – 2013 through 9/30/2024 9 • Long history of adding hig
Slide 12: GBCI Geography: Target Banks
9/30/24 GBCI Geography Total chartered banks 257 Total target banks 196 Assets under $1B 160 Assets $1 – $3.5B 36 12
Slide 13: Solid Financial Results
Solid Financial Results @ Glacier Bancorp 13
Slide 14: 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 $2.38 $2.81 $2.01 $0.55 $0.29 $0.50 $0.39 $0.47 $0.45 $2.74 $1.52 • The decrease in third quarter 2024 EPS over third quarter 2023 EPS was driven primarily by the significant increase in
Slide 15: Return on Assets
0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 1.62%1.64% 1.33% 0.81% 0.83% 0.62% • ROA in the second quarter of 2024 was in the 22nd♦ percentile among Glacier’s peer group 15 Return on Assets ♦BHCPR as of 6/30/2024 1.15%
Slide 16: Return on Tangible Equity
4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 16.15% 15.49% 16.59%16.85% 12.14% 12.27% 8.75% • The Company’s historically high capital levels have made it more difficult to produce higher ROTE. 16 Return on Tangible Equity
Slide 17: Net Interest Income / Margin
$100 $200 $300 $400 $500 $600 $700 $800 $900 $503 $600 $663 $788 $692 $702 $686 4.39% 4.09% 3.42% 3.27% 2.73% YTD 2.79% YTD 2.70% Q2 2.74% Q1 3.08% Q1 2.59% • Net interest income of $686 million, annualized, for the first nine months of 2024 decreased $17 million, or 2.38%, over net interest income
Slide 18: Efficiency Ratio
38.0% 42.0% 46.0% 50.0% 54.0% 58.0% 62.0% 66.0% 70.0% 74.0% 78.0% 57.8% 50.0% 51.4% 54.6% 62.9% YTD 62.1% YTD 69.0% • The efficiency ratio for the first nine months of 2024 was 69.0% compared to 62.1% for the first nine months of 2023 and was primarily due to the increase in interest expense in the
Slide 19: Strong Balance Sheet
Strong Balance Sheet 19
Slide 20: Asset Trends
$13,864 $18,504 $25,941 $26,635 $27,743 $28,206 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 $26,000 $28,000 $30,000 • Total assets organically decreased $718 million, or 3%, during the first nine months of 2024 • Total assets grew $1.107 billion, or 4%, in 2023 • Decreased cash p
Slide 21: CET 1 Capital Relative to Peers
11.00% 12.00% 13.00% CET1 12.1% 12.5% Peers Glacier • Regulatory capital CET1 ratio well above peer median 21 CET 1 Capital Relative to Peers♦ ♦ Proxy Compensation Peer Group Median as of 9/30/2024
Slide 22: Ample Liquidity of $14.8 Billion at September 30, 2024
Ample Liquidity of $14.8 Billion at September 30, 2024 • Ready access to liquidity totaling $9.7 billion • $5.2 billion in available borrowing capacity o Federal Reserve: $1.9 billion o FHLB: $2.7 billion o Correspondent banks: $0.6 billion • $3.5 billion of unpledged marketable securities • Cash of
Slide 23: Strong Core Deposit Base
Strong Core Deposit Base • Our community banking model is customer relationship driven • Uninsured deposits, excluding collateralized public deposits and cash held at the holding company, are 23% of total deposits • 33% of uninsured deposits are with customers that also have a loan relationship with
Slide 24: Strong Core Deposit Base - Continued
Strong Core Deposit Base - Continued • Demand and savings deposit characteristics • Deposit Granularity • Retail: 667,955 accounts ; average balance = $11,440 • Commercial: 163,144 accounts ; average balance = $61,020 • Relationship Length • Weighted average relationship age is 15 years • Compositio
Slide 25: Deposit Trends
$10,776 $14,798 $21,337 $20,607 $19,929 $20,715 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 • During the first nine months of 2024: • total deposits increased $786 million, or 4% • core deposits grew $786 million or 4%, while brokered deposits declined $0.7 million, or 17% • deposits and
Slide 26: Deposit Composition
Non- Interest Bearing 32% NOW and DDA 26% Savings 14% MMDA 15% CDs 13% Wholesale 0% 9/30/2023 Non- Interest Bearing 31% NOW and DDA 26% Savings 13% MMDA 14% CDs 16% Wholesale 0% 9/30/2024 26 Deposit Composition
Slide 27: Non-Interest Bearing Deposits
$3,697 $5,455 $7,779 $7,691 $6,023 $6,408 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 • Non-interest bearing deposits increased $385 million, or 6%, during the first three quarters of 2024 • Non-interest bearing deposits decreased to 31% of total core deposits at September 30, 2024 compared to
Slide 28: Interest-Bearing Deposit Cost Relative to Peers
0.24% 0.15% 0.09% 0.11% 1.22% 1.91% 1.10% 0.53% 0.21% 0.58% 2.49% 3.15% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Glacier Peers • Interest-bearing deposit cost increased to 1.94% at September 30, 2024 due to market dynamics and the competitive rate environment • Total deposit costs increased t
Slide 29: Loan Trends
$9,513 $11,123 $13,432 $15,247 $16,198 $17,181 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 $18,000 • Including the $722 million in loans from the Wheatland and Rocky Mountain acquisitions, gross loans increased $983 million, or 8% annualized, during the first nine months o
Slide 30: Organic Loan Growth
$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $364 $1,158 $419 $1,815 $951 $888 $261 • Organic loan growth for the first nine months of 2024 was $261 million, or 2% annualized, compared to $888 million, or 8% annualized, for the first nine months of 2023 30 Organic Loan Growth (Do
Slide 31: Loan Composition
Residential Real Estate 10% CRE 64% Other Commercial 18% HELOC 5% Other Consumer 3% 9/30/2023 Residential Real Estate 11% CRE 63% Other Commercial 19% HELOC 5% Other Consumer 2% 9/30/2024 31 Loan Composition
Slide 32: Geographic Loan Dispersion
Montana 62% Idaho 22% Utah 2% Washington 1% Wyoming 9% Colorado 4% 12/31/2009 Montana 34% Idaho 13%Utah 15% Washington 8% Wyoming 8% Colorado 9% Arizona 9% Nevada 4% 9/30/2024 32 Geographic Loan Dispersion
Slide 33: Term CRE Portfolio
Term CRE Portfolio * Diversified and Low Risk Portfolio • Total portfolio $7.1 billion (41% of total portfolio) • Non-owner portfolio $3.9 billion (23% of total portfolio) • $881 thousand average loan balance • 58% average LTV • 0.11% past due rate • 0.03% non-performing • 98% of loans have recourse
Slide 34: Office CRE
Office CRE * • $679 thousand average loan balance • 59% average LTV • 0.00% past due • 0.05% non-performing • 98% of loans have recourse through guaranties • Includes $143 million in medical office • 14% of office portfolio matures or reprices prior to 2026 • Limited exposure to loans above $10 mill
Slide 35: Office CRE - Continued
Office CRE - Continued Denver $42 million Phoenix $26 million Salt Lake City $25 million Suburban/Rural $1.39 billion • Highly diversified portfolio across 8 states primarily in rural markets • Portfolio in Denver, Phoenix, and Salt Lake City represent 6% of total office (0.5% of total loans) • $17
Slide 36: Investment Portfolio Trends
$2,800 $5,528 $10,370 $9,022 $8,288 $7,785 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 • Investment securities ended third quarter 2024 at 28% of total assets compared to 30% at the end of third quarter 2023 • Investments decreased $503 million, or 6%, during the first ni
Slide 37: Investment Composition
US Gov't & Federal Agency 16% US Gov't Sponsored Enterprises 4% State & Local Gov'ts 21% Corporate Bonds 0% Residential MBS 46% Commercial MBS 13% 9/30/2023 US Gov't & Federal Agency 17% US Gov't Sponsored Enterprises 4% State & Local Gov'ts 22% Corporate Bonds 0% Residential MBS 44% Commercial MBS
Slide 38: Improved Credit Quality
Improved Credit Quality 38
Slide 39: NPAs to Bank Assets
0.00% 0.10% 0.20% 0.30% 0.40% 0.27% 0.19% 0.12% 0.09% 0.15% 0.10% • NPAs increased $2.5 million during the first nine months of 2024 to 0.10% of Bank assets compared to the $9.5 million increase in the first nine months of 2023 to 0.15% of Bank assets 39 NPAs to Bank Assets 0.26%
Slide 40: CECL and Allowance for Credit Losses (ACL)
CECL and Allowance for Credit Losses (ACL) • Commercial Asset Quality Ratings • Consumer Loan Past Due Status • Additional Qualitative Adjustments • Prepayment Speed Assumptions • Low levels of unemployment • Historical Loss Period Capture 40 (Dollars in millions) Other Key Model Inputs National Eco
Slide 41: Provision For Credit Losses
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $57 $39,765 $23,076 $19,963 $14,795 $11,782 $19,772 • Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts and other environmental factors will determine the future level of
Slide 42: Net Charge-Offs
$0 $2,500 $5,000 $7,500 $10,000 $12,500 $6,806 $7,653 $2,329 $7,815 $10,316 $6,621 $8,728 • For the first nine months of 2024, net charge-offs as a percentage of total loans were 0.05% compared to 0.04% in the first nine months of 2023 42 Net Charge-Offs (Dollars in thousands)
Slide 43: ACL as a Percentage of Loans
1.00% 1.25% 1.50% 1.75% 1.31% 1.42% 1.29% 1.20%1.19% 1.19% 1.19% • ACL was in the 45th♦ percentile of Glacier’s peer group for the second quarter 2024 • The ACL was 1.19% of loans at the end of third quarter 2024 compared to 1.19% at the end of third quarter 2023 • As credit trends change, expect th
Slide 44: Shareholder Return
Shareholder Return @ Glacier Bancorp 44
Slide 45: Dividends Declared
$0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $1.10 $1.20 $1.30 • At September 30, 2024, Glacier’s dividend yield was 2.89% • The Company has declared 158 consecutive quarterly dividends 45 Dividends Declared
Slide 46: Year Total Return 9/30/2014 – 9/30/2024
10 Year Total Return 9/30/2014 – 9/30/2024 46
Slide 47: Year Total Return 9/30/2023 – 9/30/2024
1 Year Total Return 9/30/2023 – 9/30/2024 47
Slide 48: A Definitive Ranking of Publicly Traded Banks
48 A Definitive Ranking of Publicly Traded Banks Every publicly traded bank ranked by all-time total shareholder return * Includes both dividends paid and share price appreciation ** Normalized to account for the time period that each bank has been publicly traded GBCI shares have been publicly trad
Slide 49: Named by Forbes as a World's Best Bank
Named by Forbes as a World’s Best Bank Five consecutive years (2020-2024) 49
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