Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Investor Presentation (January 2023)
30 slides from Trico Bancshares's investor presentation, January 2023
Slide 1: Investor Presentation Fourth Quarter 2022
Investor Presentation Fourth Quarter 2022 Richard P. Smith, President & Chief Executive Officer John S. Fleshood, EVP & Chief Operating Officer Peter G. Wiese, EVP & Chief Financial Officer
Slide 2: Safe Harbor Statement
Safe Harbor Statement The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertaintie
Slide 3: Agenda
Agenda Most Recent Quarter Recap Company Overview Lending Overview Deposit Overview Financials 3 Investor Presentation | Fourth Quarter 2022
Slide 4: Most Recent Quarter Highlights
Most Recent Quarter Highlights Operating Leverage • Pre-tax pre-provision ROAA and ROAE were 2.21% and 21.59%, respectively, for the quarter ended and Profitability December 31, 2022, and 1.84% and 15.72%, respectively, for the same quarter in the prior year • Our efficiency ratio was 51.8% for the
Slide 5: Company Overview
Company Overview Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $50.99 Market Cap.: $1.70 Billion Asset Size: $9.93 Billion Loans: $6.45 Billion Deposits: $8.33 Billion Bank Branches: 70 ATMs: 88 Bank ATMs, with access to over 37,000 network ATMs Market Area: TriCo currently serves 31 co
Slide 6: Executive Team
Executive Team Left to right: Judi Giem, SVP & Chief Human Resources Officer Peter Wiese, EVP & Chief Financial Officer Dan Bailey, EVP & Chief Banking Officer Rick Smith, President & Chief Executive Officer John Fleshood, EVP & Chief Operating Officer Craig Carney, EVP & Chief Credit Officer Greg G
Slide 7: Top of Mind for Today and Tomorrow
“Top of Mind for Today and Tomorrow” Key Executive Management Themes and Topics • Capital and Liquidity Planning – the Ability to Remain in a Position of Strength • Maintaining a Vigilant and Proactive Credit Perspective – When and If Exposures May be Observed • The Timing, Pace and Extent of Rate C
Slide 8: Positive Earnings Track Record
Positive Earnings Track Record $40 March 2022 $1.20 Acquired Valley Republic Bancorp ($1.4B assets) $36 July 2018 Acquired FNB Bancorp ($1.2B assets) $32 Earnings (in Millions) $28 $0.80 Qtrly EPS (diluted) $24 $20 $16 $0.40 $12 $8 $4 $0 $0.00 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2
Slide 9: Shareholder Returns
Shareholder Returns Dividends per Share: 10.6% CAGR* Return on Avg. Shareholder Equity 12.10% 11.67% $1.25 Q1 Q2 Q3 Q4 $1.10 10.75% 10.49% $1.00 $0.88 9.47% $0.82 $0.30 $1.00 $0.25 8.10% $0.66 $0.70 7.18% $0.75 $0.60 $0.22 $0.22 $0.19 $0.25 $0.30 $0.15 $0.17 $0.22 $0.50 $0.22 $0.15 $0.17 $0.17 $0.25
Slide 10: Consistent Growth
Consistent Growth Organic Growth and Disciplined Acquisitions CAGR 5 yrs. 10 yrs. Total Assets 15.9% 14.4% Asset Dollars in Billions. 10 Investor Presentation | Fourth Quarter 2022
Slide 11: Loans and Credit Quality
Loans and Credit Quality 11 11 Investor Presentation | Fourth Quarter 2022
Slide 12: Consistent Loan Growth
Consistent Loan Growth 6.50% $6,451 $6,313 $6,097 $6,000 $5,796 $5,000 $4,859 $4,711 $4,739 5.44% $4,610 5.50% $4,381 $4,386 $4,407 $4,443 $4,000 $4,111 $4,022 5.15% 5.10% 5.24% 5.09% 5.23% 4.92% 4.96% 4.88% 5.05% 4.73% $3,000 4.69% 4.86% 4.78% 4.50% $2,000 $1,000 $0 3.50% 2018 2019 Q1 2020 Q2 2020
Slide 13: Gross Production vs. Payoff
Gross Production vs. Payoff Originations and net loan TCBK originated over $0.9 billion In addition to the nearly $0.8 TCBK originated nearly $1.5 growth in 2022 were supportive in loans in 2019, while facing billion in non-PPP loan billion in 2021, while facing of the positive mix shift in headwind
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio CRE Non- Multifamily Occupied Occupied 4Q-2022 $1,896 $257 Owner 4Q-2021 $1,603 4Q-2022 $860 $121 Owner CRE- 4Q-2021 $706 4Q-2022 $927 $17 4Q-2021 $823 4Q-2022 $765 $27 SFR 1-4 Term 4Q-2021 $670 HELOC Commercia Industrial 4Q-2022 $415 $155 Agriculture & Auto & Other l& Far
Slide 15: CRE Collateral Values
CRE Collateral Values Distribution by LTV (1) 90% LTV Range 88% 80% <= 60% > 60% - 75% 78% > 75% 70% 72% 70% 60% 63% 60% 50% 50% 50% 47% 40% 43% 39% 37% 30% 28% 24% 20% 20% 10% 12% 7% 2% 3% 2% 0% 0% 4% 1% 0% Retail Building Office Building Hotel/Motel Light Industrial Self Storage Other Multifamily
Slide 16: Unfunded Loan Commitments
Unfunded Loan Commitments HELOCs – by vintage, with weighted avg. coupon (5.67% total WAC) Outstanding Principal ($MM) 8.00% 7.45% 7.58% 7.36% 7.43% 7.35% $275 6.84% 6.76% 6.83% 6.78% 7.03% 6.74% $250 Unfunded Commitment ($MM) 7.00% 6.35% 6.23% $225 6.00% $150 $200 5.00% 4.54% 4.66% $175 4.00% $150
Slide 17: C&I Utilization
C&I Utilization C&I Utilization by NAICS Industry: 4Q-2022 • C&I utilization is expected to grow 20000% $186 incrementally in 2023 18000% 16000% Outstanding (mln) Unfunded (mln) 14000% $118 $123 12000% $86 • Paired with treasury management 10000% 8000% $71 $53 $80 $68 $50 $43 $51 $45 $39 $37 service
Slide 18: Loan Yield Composition
Floating 14% Loan Yield Composition Fixed 43% 57% Adjustable + Floating 98% of Floating Predominantly benchmarked benchmarked to Prime to 5 Year Treasury Adjustable 1,000 43% 9.00% 900 8.14% 8.00% 7.44% 800 7.09% 6.94% 6.84% 6.93% 7.00% 6.79% 700 6.00% 600 5.29% 4.95% 5.00% 500 4.68% 4.36% 4.22% 4.1
Slide 19: Allowance for Credit Losses Drivers of Change under CECL
Allowance for Credit Losses Drivers of Change under CECL Loan growth of Gross charge offs Increase in Continued low $136 million Q4 $0.174 million Criticized & loss experience 1.64% 1.61% (excluding PPP) Classified loans of and improvement of Total Gross recoveries $18 million in Unemploym
Slide 20: Allowance for Credit Losses Allocation of Allowance by Segment
Allowance for Credit Losses Allocation of Allowance by Segment Municipal loans included in Commercial and industrial segment within the presented table 20 Investor Presentation | Fourth Quarter 2022
Slide 21: Risk Grade Migration
Risk Grade Migration 1.0% 1.1% 0.8% 0.8% 0.9% 1.1% 2.5% 1.6% 2.1% 1.8% 2.0% 2.0% 7.8% 9.5% 9.7% 8.6% 7.9% 9.3% 87.2% 89.6% 87.6% 87.8% 88.5% 89.0% 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 Pass Watch Special Mention Substandard Zero balance in Doubtful and Loss 21 Investor Presentation | Fou
Slide 22: Asset Quality
Asset Quality On a year-to-date basis net Non-Performing Assets as a % of Total Assets recoveries of $322,000 and have 0.73% 0.75% 0.73% TCBK Peers 0.68% been realized. 0.64% 0.58% 0.53% 0.54% 0.55% 0.51% 0.50% 0.47% Over the past three years both the 0.38% 0.38% 0.42% 0.37% 0.38% Bank’s total n
Slide 23: Deposits
Deposits 23 23 Investor Presentation | Fourth Quarter 2022
Slide 24: Deposits: Strength in Funding
Deposits: Strength in Funding Liability Mix 12/31/2022 Loans to Core Deposits (%) Borrowings & Other TCBK Peers 120 Time Subordinated liabilities, Deposits, Debt, 4.1% 2.1% 100 2.5% 80 81.6 81.6 76.9 75.9 75.8 60 72.6 71.8 71.4 70.1 69.1 66.9 66.4 66.0 40 20 0 Non Interest- 2019 2020 2020 2020 2020
Slide 25: Deposits: Strength in Cost of Funds
Deposits: Strength in Cost of Funds 9,000 $8,714 $8,757 $8,656 Relationship focused market share growth. $8,329 Continued best in class total deposit Beta; 8,000 $7,367 (less than 1.5% rate rise cycle to date) $6,992 $7,237 $6,863 7,000 $3,583 $3,604 $6,506 $3,678 $6,248 $6,341 $3,502 6,000 $2,9
Slide 26: Financials
Financials 26 26 Investor Presentation | Fourth Quarter 2022
Slide 27: Net Interest Income (NII) and Margin (NIM)
Net Interest Income (NII) and Margin (NIM) 3Q22 to 4Q22 Reported Net Interest Income (NII) & NIM Walk 120. 0 6.00% NII $ in millions, NIM change in bps, all full taxable equivalent (FTE) NII (FTE) NIM (FTE) NII NIM 5.50% 3Q22 $94.5 4.02% 100. 0 $99.3 Market rate changes - earning 7.2 48 $94.5 5.00%
Slide 28: Current Operating Metrics
Current Operating Metrics Net Interest Margin (FTE) Efficiency Ratio 4.30% 4.47% 4.23% 4.22% 3.96% 3.88% 3.58% 68.7% 65.4% 63.7% 59.7% 58.4% 53.2% 53.0% 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 PPNR as % of Average Assets ROAA 1.43% 1.43% 1.94% 1.91% 1.97% 1.24% 1.28% 1.
Slide 29: Well Capitalized
Well Capitalized Tier 1 Capital Ratio CET1 Ratio 14.4% 14.2% 13.3% 14.0% 13.2% 13.7% 13.7% 12.9% 13.2% 12.5% 12.2% 12.4% 11.7% 11.7% 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Total Risk Based Capital Tangible Capital Ratio 15.4% 10.6% 15.1% 15.2% 14.8% 14.4% 9.3% 9.5% 9.3
Slide 30: XYZ
Pending update – no material change to format XYZ 30 Investor Presentation | Fourth Quarter 2022
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