Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Investor Presentation (September 2020)
45 slides from Glacier Bancorp's investor presentation, Sep 10, 2020
Slide 1: Investor Presentation September 2020
Investor Presentation September 2020 Exhibit 99.1
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 intentio
Slide 3: Glacier Bancorp 6/30/2020 Snapshot
Glacier Bancorp, Inc. 6/30/2020 Snapshot Ticker GBCI Total Assets $16.91 billion Gross Loans $11.45 billion Deposits $13.38 billion TCBV Per Share $17.08 Quarterly Dividend $0.29 Stock Price $35.29 Market Cap $3.37 billion
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
Slide 5: Glacier is a "Company of Banks"
Glacier is a “Company of Banks”
Slide 6: 2019 Announced Acquisition Highlights
2019 Announced Acquisition Highlights
Slide 7: Bank Divisions locations (as of 6/30/2020)
WY ID UT AZ NV WA CO MT 16 Bank Divisions 192 locations (as of 6/30/2020)
Slide 8: GBCI Geography: Total chartered banks and target banks
3/31/20 GBCI Geography Total chartered banks 315 Total target banks 206 Assets under $1B 185 Assets $1 – $3.5B 21
Slide 9: Solid Financial Results
V7 2 Solid Financial Results Ra
Slide 10: Total Return 6/30/2015 – 6/30/2020
5 Year Total Return 6/30/2015 – 6/30/2020
Slide 11: Total Return 6/30/2019 – 6/30/2020
1 Year Total Return 6/30/2019 – 6/30/2020
Slide 12: Forbes Performance Ranking of America's Largest Banks
Forbes Performance Ranking of America’s 100 Largest Banks
Slide 13: Bank Director Bank Performance Scorecard
Bank Director Bank Performance Scorecard $5 Billion up to $50 Billion
Slide 14: Reconciliation of 2017 Non-GAAP Measures to GAAP
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-GA
Slide 15: Diluted Earnings Per Share
Diluted Earnings Per Share Second quarter 2020 earnings per share decreased $0.05 per share, or 8%, over prior year second quarter First half 2020 earnings includes: Credit loss expense of $36.3 million largely due to CECL Acquisition-related expenses of $6.5 million Gain of $2.3 million from sale o
Slide 16: Return on Assets
ROA in the first quarter of 2020 was in the 92nd* percentile among Glacier’s peer group Return on Assets * Non-GAAP (see reconciliation on slide 16) * BHCPR as of 3/31/2020
Slide 17: Return on Tangible Equity
Return on Tangible Equity We maintain historically high capital levels which have made it more difficult to produce higher ROTE * Non-GAAP (see reconciliation on slide 16)
Slide 18: Net Interest Margin
Net Interest Margin First half of 2020 net interest margin of 4.23% decreased 10 basis points over the 2019 second quarter net interest margin of 4.33% (Dollars in millions) *Net interest income and margin is annualized
Slide 19: Efficiency Ratio
Efficiency Ratio First half of 2020 efficiency ratio improvement was driven by increases in gain on sale of loans and commercial loan interest income that more than offset the decreases in service fee income from the Durbin amendment and increases in compensation expenses Excluding $18.9 million of
Slide 20: Strong Balance Sheet
Strong Balance Sheet 4 19 BRoracier BANCcoRP, INC.
Slide 21: Asset Trends
Asset Trends Total assets increased $3.2 billion, or 24%, in the first half of 2020, including $744 million from State Bank of Arizona Total assets grew $1.6 billion, or 13%, in 2019, including $379 million from First National Bank of Layton and $978 million from Heritage Bank of Nevada (Dollars in
Slide 22: Capital Ratios Relative to Peers
Capital Ratios Relative to Peers* Total risk based capital ranks in the 68th percentile among Glacier’s peer group Capacity to add $5.1 billion of assets and still maintain an 8% leverage ratio * BHCPR as of 3/31/2020
Slide 23: Ample Liquidity of $11.2 Billion
Ample Liquidity of $11.2 Billion Ready access to liquidity totaling $7.7 billion $5.6 billion in available borrowing capacity Fed Discount Window: $1.2 billion Fed PPP Liquidity Facility: $1.4 billion (Based on PPP loans funded as of June 30, 2020) FHLB: $2.6 billion Correspondent banks: $0.4 billio
Slide 24: Deposit Trends
Deposit Trends First half 2020 deposits increased $2.6 billion, or 24%, including $603 million from State Bank of Arizona Organic deposit growth for the first half 2020 was $2.0 billion, or 19% Growth in the number of deposit accounts has also increased significantly the past several years (Dollars
Slide 25: Deposit Composition
V7 2 Deposit Composition 6/30/2019 6/30/2020 Wholesale 2% Wholesale CDs 1% 1% CDs 9% Non- Interest MMDA Interest we Bearing 18% Bearing wre 33% 2 Savings 14% A 24 GLACIER BANCORP, INC.
Slide 26: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits Non-interest bearing deposits increased $1.3 billion, or 36%, during first half 2020, including $142 million from State Bank of Arizona Non-interest bearing deposits comprise 38% of total deposits Organic growth for the first half 2020 was $1.2 billion, or 33% (Dollars
Slide 27: Deposit Costs Relative to Peers
Deposit Costs Relative to Peers Total deposit costs have remained stable while Glacier’s peer group costs have increased Core deposits are a competitive advantage and will be a key driver of future performance
Slide 28: Loan Trends
Loan Trends First half of 2020 gross loans increased $1.940 billion, or 20%, including $452 million from State Bank of Arizona Excluding $1.427 billion of PPP loans, the loan portfolio decreased $61.4 million, or 61 basis points, during the current quarter (Dollars in millions)
Slide 29: Organic Loan Growth
Organic Loan Growth Organic loan growth for second quarter 2020 was $1.489 billion, or 31% annualized, compared to $309 million, or 8% annualized, for second quarter 2019 (Dollars in millions)
Slide 30: Loan Composition
V7 2 Loan Composition 6/30/2019 6/30/2020 CRE 56"
Slide 31: Geographic Loan Dispersion
Geographic Loan Dispersion 06/30/20 2009
Slide 32: COVID-19 High Risk Industries Enhanced-Monitoring
COVID-19 High Risk Industries Enhanced-Monitoring Conducting ongoing portfolio reviews and monitoring for potential credit impacts from COVID-19 $401 million of modifications made in the enhanced-monitoring loan portfolio 26% of total modifications of $1.515 billion
Slide 33: COVID-19 Total Loan Modifications and PPP Loans
COVID-19 Total Loan Modifications and PPP Loans
Slide 34: Investment Portfolio Trends
Investment Portfolio Trends First half 2020 investment securities made up 22% of total assets Investments increased $937 million in the first half 2020 Our long-term goal is to maintain investment securities between 20% to 25% of total assets (Dollars in millions)
Slide 35: Investment Composition
V7 2 Investment Composition 6/30/2019 6/30/2020
Slide 36: Improved Credit Quality
V7 2 Improved Credit Quality KN
Slide 37: NPAs to Bank Assets
NPAs to Bank Assets NPAs decreased $6 million in the first half 2020 compared to the first half of 2019
Slide 38: CECL and Allowance for Credit Losses (ACL)
CECL and Allowance for Credit Losses (ACL) (Dollars in millions) Commercial Asset Quality Ratings Consumer Loan Past Due Status Additional Qualitative Adjustments Prepayment Speed Other Key Model Inputs National Economic Assumptions (June 2020)
Slide 39: Credit Loss Expense
Credit Loss Expense Loan portfolio growth and credit quality considerations will determine the level of credit loss expense (Dollars in thousands)
Slide 40: Net Charge-Offs
Net Charge-Offs First half 2020 net charge-offs as a percent of total loans were 0.02% compared to 0.03% for first half 2019 (Dollars in thousands)
Slide 41: ACL as a Percent of Loans
ACL as a Percent of Loans ACL was 394% of non-performing loans at the end of first half 2020 compared to 289% at the end of first half last year ACL was in the 70th* percentile of Glacier’s peer group for first quarter 2020 As credit trends change, expect our allowance to adjust accordingly * BHCPR
Slide 42: Shareholder Return
V7 2 Shareholder Return KN
Slide 43: Dividends Declared
Dividends Declared At June 30, 2020, Glacier’s dividend yield was 3.31% The Company has declared 141 consecutive quarterly dividends In 2019, the Company increased its quarterly dividend by $0.10, or 10%, over 2018
Slide 44: Long-Term Performance Since 1984
Long-Term Performance Since 1984 Strong consistent performance over the past 36 years Long-term goal is to produce double digit dividend growth
Slide 45: Montana, Idaho, Utah, Washington, Wy
Ma Montana, Idaho, Utah, Washington, Wy
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