Glacier Bancorp, Inc. · NYSE:GBCI
Glacier Bancorp — Investor Presentation (March 2020)
46 slides from Glacier Bancorp's investor presentation, Mar 27, 2020
Slide 1: Investor Presentation March 2020
ZN Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona & Nevada INVESTOR PRESENTATION March 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 intentio
Slide 3: Glacier Bancorp, Inc. 12/31/2019 Snapshot
Ticker Total Assets Gross Loans Deposits TCBV Quarterly Dividend* Stock Price Market Cap * Includes a $0.20 special dividend $13.68 Billion $9.51 Billion $10.78 Billion $15.61 $0.49 $45.99 $4.24 Billion Glacier Bancorp, Inc. 12/31/2019 Snapshot GBCI 2 GLACIER BANCORP, INC.
Slide 4: Differentiated Bank Model
4 Differentiated Bank Model > Genuine community banking model > Backed by resources and support of Glacier Bancorp > Strategy of growththrough acquisitions and organically
Slide 5: Glacier is a "Company of Banks"
Ss > Glacier is a “Company of Banks” AG .acieR BANK’ f FirstSecurityBank (Valley) Nee Am A Division of Glacik Qe _ Me eens ie, soins, Mountain ) WESTERN SECURITY West Bank Clink A Friend You Can Talk To 1 Ee SAN Finsteank ily JUANS u COLLEGIATE [) North Cascades Bank al Foothills Bank a PEAKS BANK a
Slide 6: 2019 Announced Acquisition Highlights
NN aN 2019 Announced Acquisition Highlights FIRS itage (gure COMMUNTIY Sank CR of Nevada : it Date v162019 4/3/2019 9/30/2019 . re Late 4Q 2019 or oo ace ccnenma ‘Transaction Value ($million) MMBSCEMIPTItCy $240.7 million $135.3 million Consideration Mix Bena 93% Stock / 7% Cash 90% Stock / 10% Cash
Slide 7: 16 Bank Divisions, 181 locations
s > [north lesBank Aoracier BANK FIRSTBANK” ok dhe Foothills Bank ~” #3 16 Bank Divisions 23 181 locations «12119 GLACIER BANCORP, INC.
Slide 8: GBCI Geography and target banks
Slide 9: Percent Change in Real GDP by State
Percent Change in Real GDP by State 2019:Q2 — 2019:Q3 US. Bureau of Economic Analysis 8 Navcux BANCORP, INC.
Slide 10: Price of Inter-State Migration
Price of Inter-State Migration Net gain/loss as % of state's total adjusted gross income (AGI) m Winners: > +0.20% m Losers: <-0.20% m Within +/- 0.20% 0.3 0.26% 0.45% in zack 1.10% 0.479 1,60% 0.28: 5 0.539% 031% 65% 9.52%, © oss 105% - Bloomberg analysis of IRS individual filings in 2016 and 2015,
Slide 11: Solid Financial Results
4 Solid Financial Results
Slide 12: Total Return (5 Year)
RA, Uf Total Return (4) ot 28 28 5 Year Total Return 12/31/2014 — 12/31/2019 1OM. | | itil Hivtinttit 2015 2016 2017 2018 2020 > NASDAQ:GBCI:98.02% @ NASDAQ:GBCI-Vol —— Russell 2000: 48.49% — S&P 500 Commercial Banks: 80.53 % W Neracier BANCcoRP, INC.
Slide 13: Total Return (1 Year)
RA, Uf Total Return (%6) Volume 1 Year Total Return 12/31/2018 — 12/31/2019 teddies sestneesnnsd Age'i9 Aug 19 oct"19 Dec"19 —— NASDAQ:GBCI:20.09% @ NASDAQ:GBCI-Vol — Russoll 2000: 25.52% — S&P 500 Commercial Banks: 40.63 % 12 Neracier BANcorpP, INC.
Slide 14: Forbes Performance Ranking of America's Largest Banks
RA, Uf Forbes PERFORMANCE RANKING OF America’s 100 Largest Banks NPAs/ CET1 Efficiency Operating ROTCE Assets Ratio Ratio Revenue Sept 30 Rank Company Name (%) 6) (%) (%) __ Growth (%) 2019 9. Glacier Bancorp Inc. 16.8 0.57 126 58 14.0 2018 16 Glacier Bancorp Inc. 14.0 0.79 12.3 55 175 2017 10 Glaci
Slide 15: Bank Director Bank Performance Scorecard
RA, Uf Bank Director BANK PERFORMANCE SCORECARD $5 Billion up to $50 Billion Core Core TCE/ NPAs/ NCOs/ Year ROAA ROAE Tang Assets Loans & Avg Loans Ending Rank Company Name () () () REO (%) (@) 2018 16 Glacier Bancorp Inc. 167 13.21 9.99 091 0.11 2017 17 __ Glacier Bancorp Inc. 144 11.75 10.58 147
Slide 16: Reconciliation of 2017 Non-GAAP Measures to GAAP
December 31 @ollars in thousands, except per share data) 2017 Earnings per share YTD (GAAP) $ 1.50 Tax Act adjustment (GAAP) 0.25 Earnings per share YTD (non-GAAP) _3 1.75 Return on assets (GAAP) 1.20% Tax Act adjustment (GAAP) 0.21% Return on assets (non-GAAP) 1.41% Return on tangible equity (GAAP)
Slide 17: Earnings Per Share
$2.20 $2.00 $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 $1.54 $1.59 $1.75* | i 2017 +2018 2019 * Non-GAAP (see reconciliation on slide 15) Earnings Per Share $2.17 $2.38 Fourth quarter 2019 earnings per share increased $0.03 per share, or 5%, over prior year fourth quarter Earnings p
Slide 18: Return on Assets
Return on Assets 1.64% EG sae >» ROA remains solid through p 2019 1.55% > ROA in the third quarter of 1.45% 1.41%* 2019 was in the 89th ' percentile among Glacier’s aeece peer group 1.35% 1.32% 1.25% | x F r r r 1.15% + 2015 42016 2017 2018 2019 * Non-GAAP (see reconciliation on slide 15) * BHCPR as
Slide 19: Return on Tangible Equity
Return on Tangible Equity 18.00% 5 > We maintain historically which 16.15% high capital levels 16.00% have made it more difficult to produce higher ROTE 15.00% — 200% 13.66%* > ROTE has”) grown’ with ees increased performance » 13.00% | 7% 12.71% 12.00% 11.00% va = i 10.00% 2015 2016 2017 S018 2019
Slide 20: Net Interest Income and Net Interest Margin
$550 r 2015 2016 2017 2018 2019 mm Net Interest Income -@ Net Interest Margin (ollars in millions) 4.50% 4.40% 4.30% 4.20% 4.10% 4.00% 3.90% Net Interest Margin > Net interest margin of 4.39% increased 18 basis points over the prior year The net interest margin for 2018 and 2019 time periods include
Slide 21: Efficiency Ratio
Efficiency Ratio 57.8% 58.0% 57.0% 56.0% 55.0% 54.0% 53.0% T 2015 2016 2017 2018 2019 > Excluding $18.9 million of expenses(*) incurred in the third quarter of 2019, the year to date 2019 efficiency ratio would be 54.8% The 2018 and 2019 efficiency ratios reflect the impact of the decrease in the fe
Slide 22: Strong Balance Sheet
Ry, a Strong Balance Sheet f 21 Ncuacier Bancorp, INC.
Slide 23: Asset Trends
$15,000 $14,000 $13,000 $12,000 $11,000 $10,000 Asset Trends $12,115 $13,684 $9,000 2015 2016 (ollars in millions) 2017 2018 2019 > Total assets increased $1.6 billion, or 13%, during 2019, including $379 million from First Community Bank Utah and $978 from Heritage Bank of Nevada > Total assets gre
Slide 24: Capital Ratios Relative to Peers
Capital Ratios Relative to Peers* 18.00% re 15.0% > Total risk based capital 15.00% calor ranks in the 68* percentile among Glacier’s peer group 12.00% 9.00% > Capacity to add $6.3 billion of assets and still maintain 9 A 6.00% an 8% leverage ratio 3.00% A 0.00% T T T t Tierl CETL Tier1 Total Levera
Slide 25: Deposit Trends
Deposit Trends 411,500 > Total deposits for 2019 $10,776 increased $1.3 billion, or 14%, due in part to the 19,000 acquisitions of First Community Bank Utah and Heritage Bank of Nevada $9,500 - > Organic deposit growth for $8,500 2019 was $286 million, or 3% $7,500 > Growth in the number of deposit
Slide 26: Deposit Composition
— 7” 7 Deposit Composition 12/31/2018 12/31/2019 Wholesale 2% CDs 9% MMDA 18% Non- Interest Non- Interest een 18% Savings Savings 1A 14% NOW and NOWand DDA DDA 25% 25% “a 25 = #NGLaciER BANCcorP, INC.
Slide 27: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits $3,697 2015 2016 (ollars in millions) 2017 2018 2019 > Non-interest bearing deposits increased $695 million, or 23%, during 2019 > Non-interest bearing deposits comprise 34% of total deposits > Organic growth for 2019 was $305 million, or 10%, compared to $218 million,
Slide 28: Total Deposit Costs
0.80% 5 0.73% > 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 27 Nemacin BANCORP, INC.
Slide 29: Loan Trends
RA, Uf Loan Trends $11,000 > Gross loans increased $1.2 $10,000 $9,513 billion, or 15%, during 2019 due in part to the acquisitions of First National Bank of Layton ($245 million) and Heritage Bank of Nevada ($615 million) $9,000 $8,000 $7,000 $6,000 > Gross loans increased $1.7 billion, or 26%, dur
Slide 30: Organic Loan Growth
$800 5 $700 $600 $554 $500 $400 | $346 $300 $200 $100 (ollars in millions) Organic Loan Growth $728 $601 > Organic loan growth for 2019 was $364 million, or 4%, compared to $728 million, or 11%, for 2018 $364 30 EEE 2015 2016 2017 2018 2019 29 GLACIER BANCORP, INC.
Slide 31: CRE Loan Composition
a CRE Loan Composition 12/31/2018 12/31/2019
Slide 32: Geographic Loan Dispersion
s > Geographic Loan Dispersion 2009 Geographic Distribution Wyoming 11% Colorado + 4% . Idaho 27% Montana 58% 2019 Geographic Distribution Navcux BANCORP, 31 Inc.
Slide 33: Hospitality & Tourism Portfolio
RA, Uf Hospitality & Tourism Portfolio ($ in Millions) Gaming |] SS Food/Beverage/Restaurant a $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 $500.0 32 Nemacin BANCORP, INC.
Slide 34: Hotel / Motel Exposure by State
RA, a Hotel / Motel Exposure by State ($ in Millions) > Average LTV under 60% >» Average individual loan size is less than $1.5M > 294 loans > 7 loans in excess of $10M 33 Nemacin BANCORP, INC.
Slide 35: Food & Beverage Exposure by State
(§ in Millions) Food & Beverage Exposure by State > Average LTV under 70% >» Average individual loan size is less than $175,000 AZ co ID MT NV UT WA wy 34 Nemacin BANCORP, INC.
Slide 36: Investment Portfolio Trends
Investment Portfolio Trends $3,500 > > Investment securities at $3,313 year-end were 20% of total assets $3,000 | > Investments decreased $70 million in 2019 > Our long-term goal is to maintain investment $2,427 securities between 20% to 25% of total assets $2,500 + $2,000 - - - - 1 2015 2016 «2017.
Slide 37: Investment Composition
Investment Composition 12/31/2019
Slide 38: Improving Credit Quality
Improving Credit Quality
Slide 39: NPAs to Bank Assets
NPAs to Bank Assets 1.25% 1.00% 0.88% See Z > NPAs decreased $19 million 0.76% from the prior year end to 0.75% 0.68% $37 million 0.47% 0.50% 0.27% 0.25% ‘| 0.00% + - - 7 2015 2016 2017 2018 2019 38 GLACIER BANCORP, INC.
Slide 40: Loan Loss Provision
Loan Loss Provision $15,000 5 $0 + 2015 2016 (@ollars inthousands) 2017 $ 4 $10,000 3 $5,000 $57 | | Meal a _d —_S 2018 > Loan portfolio growth and credit quality considerations will determine the level of provision for loan losses 39 GLACIER BANCORP, INC.
Slide 41: Net Charge-Offs
Net Charge-Offs $15,000 $12,500 $10,828 > For 2019, net charge-offs as a percent of total loans were 0.07% compared to 0.10% for $10,000 $7,500 2018 $5,000 $2,500 $0 < 2015 2016 2017 2018 2019 @ollars in thousands) a0 GLACIER BANCORP, INC.
Slide 42: ALLL as a Percent of Loans
> > ALLL as a Percent of Loans 3.25% 7 3.00% 2.75% ) 9.55% . 2B 2.28% 2.25% 1.97% 2.00% id 1,58% L50% | 1.31% 1.25% 1< . . La 2015 2016 2017 2018 2019 * BHCPR as of 9/30/2019 ALLL was 385% of non- performing loans at year end 2019 compared to 266% at year end 2018 ALLL was in the 86% percentile of G
Slide 43: Shareholder Return
4 Shareholder Return
Slide 44: Dividends Declared
Dividends Declared $1.15 #110 > At December 31, 2019, $1.05 Glacier’s dividend yield was $1.00 2.41% $0.95 $0.00 > The Company has declared ae 139 consecutive quarterly #0:80 dividends 30.75 $0.70 > In 2019, the Company $0.65 increased its quarterly $0.60 dividend by $0.10, or 10%, $0.55 over 2018 4
Slide 45: Long-Term Performance
Long-Term Performance Since 1984 Compounded Rates Annual’ Total Raburn 16.0% > Strong consistent performance over the past 35 years Annual EPS Growth Rate > Long-term goal is to produce double digit dividend growth Annual Dividend Growth Rate * Reflects results through 12/31/2019, assuming no reinve
Slide 46: Colorado, Arizona & Nevada
Colorado, Arizona & Nevada