Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Q3 2022 Earnings Presentation
30 slides from Trico Bancshares's earnings presentation, October 2022
Slide 1: Investor Presentation Third Quarter 2022
Investor Presentation Third 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 | Third Quarter 2022
Slide 4: Most Recent Quarter Highlights
Most Recent Quarter Highlights Operating Leverage • Pre-tax pre-provision ROAA and ROAE were 2.16% and 20.41%, respectively, for the quarter ended and Profitability September 30, 2022, and 1.78% and 15.08%, respectively, for the same quarter in the prior year • Our efficiency ratio was 49.6% for the
Slide 5: Company Overview
Company Overview Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $44.65 Market Cap.: $1.49 Billion Asset Size: $9.98 Billion Loans: $6.31 Billion Deposits: $8.66 Billion Bank Branches: 71 ATMs: 89 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 • The Timing, Pace and Extent of Rate Changes – Driving Alpha and Protecting Beta • Capital and Liquidity Planning – the Ability to Remain in a Position of Strength • Maintaining a Vigilant and Proactive Credit Perspecti
Slide 8: Positive Earnings Track Record
Positive Earnings Track Record $40 $1.50 March 2022 Acquired Valley Republic Bancorp ($1.4B assets) $36 July 2018 Acquired FNB Bancorp ($1.2B assets) $32 $1.20 $28 Earnings (in Millions) Qtrly EPS (diluted) $24 $0.90 $20 $16 $0.60 $12 $8 $0.30 $4 $0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1
Slide 9: Shareholder Returns
Shareholder Returns Dividends per Share: 10.6% CAGR* Return on Avg. Shareholder Equity 12.10% Q1 Q2 Q3 Q4 11.25% $1.25 10.75% 10.49% $1.00 $1.00 $0.88 9.47% $0.82 8.10% $0.25 7.18% $0.66 $0.70 $0.22 $0.60 $0.22 $0.75 $0.19 $0.25 $0.30 $0.15 $0.17 $0.22 $0.50 $0.22 $0.15 $0.17 $0.17 $0.25 $0.25 $0.19
Slide 10: Consistent Growth: Organic Growth and Disciplined Acquisitions
Consistent Growth Organic Growth and Disciplined Acquisitions CAGR 5 yrs. 10 yrs. Total Assets 16.5% 14.8% Asset Dollars in Billions. 10 Investor Presentation | Third Quarter 2022
Slide 11: Loans and Credit Quality
Loans and Credit Quality 11 11 Investor Presentation | Third Quarter 2022
Slide 12: Consistent Loan Growth
Consistent Loan Growth 6.50% $6,313 $6,000 $6,097 $5,796 $5,000 $240 $151 $361 $4,859 $423 $426 $327 $4,711 $4,739 $4,610 5.44% $4,407 $4,443 5.50% $4,381 $4,386 $4,000 $4,111 $4,022 5.09% 5.15% 5.24% 5.23% 4.92% 4.96% 4.88% $3,000 5.05% 4.73% 4.86% 4.78% 4.69% 4.50% $2,000 $1,000 $0 3.50% 2018 2019
Slide 13: Gross Production vs. Payoff
Gross Production vs. Payoff TCBK originated over $0.9 billion in In addition to the nearly $0.8 billion TCBK originated nearly $1.5 Originations to date in loans in 2019, while facing in non-PPP loan originations in billion in 2021, while facing 2022 surpass full years headwinds of payoffs in excess
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio CRE Non- Multifamily Occupied Occupied 3Q-2022 $1,803 $248 Owner 3Q-2021 $1,526 3Q-2022 $844 $124 Owner CRE- CRE Non Ow n Loans, net % of CRE # Loans By Collateral ($MM) NOO 3Q-2021 $701 Retail $536 347 26% Office $459 379 22% 3Q-2022 $910 $17 Hotel/Motel $282 91 14% Light
Slide 15: CRE Collateral Values
CRE Collateral Values Avg Loan Outstanding Loan Segment LTV # Loans Size ($MM) (000s) CRE Non Owner Occupied $2,074 53% 1,524 $1,361 Retail Building $540 53% 347 $1,557 Distribution by LTV (1) Office Building Hotel/Motel $464 $286 57% 50% 379 91 $1,225 $3,146 Light Industrial $173 52% 178 $972 90% W
Slide 16: Unfunded Loan Commitments
Unfunded Loan Commitments HELOCs – by vintage, with weighted avg. coupon Outstanding Principal ($MM) 7.00% $225 Unfunded Commitment ($MM) 5.95% 6.00% 5.81% 5.65% 5.79% 6.01% 5.54% 5.62% 5.86% 5.49% 5.48% $200 6.00% 5.28% 5.19% $160 $175 5.00% 4.13% $150 3.87% 4.00% $125 3.00% $100 $75 2.00% $50 $164
Slide 17: C&I Utilization
C&I Utilization C&I Utilization by NAICS Industry: 3Q-2022 • C&I lending is a growing focus 20000% $185 18000% area for our teams 16000% 14000% $118 Outstanding (mln) Unfunded (mln) 12000% $106 • Treasury management service 10000% 8000% $85 $75 $65 $53 $50 $55 $49 $44 $43 $46 $47 integration is key
Slide 18: Loan Yield Composition
Floating 14% Loan Yield Composition Fixed 43% 57% Adjustable + Floating 99% of Floating Predominantly benchmarked Adjustable benchmarked to Prime to 5 Year Treasury 43% 1,000 8.00% 900 6.94% 6.99% 6.88% 7.02% 7.00% 6.77% 6.85% 6.76% 800 6.00% 700 4.99% 5.04% 5.00% 600 4.43% 4.41% 4.28% 500 3.99% 4.0
Slide 19: Allowance for Credit Losses: Drivers of Change under CECL
Allowance for Credit Losses Drivers of Change under CECL 1.61% of Total Loan growth of Gross charge offs Increase in Continued low Loans $217 million Q3 $0.267 million Criticized & loss experience 1.60% (excluding PPP) Classified loans and improvement Gross recoveries of Total of $27.8 mil
Slide 20: Allowance for Credit Losses: Allocation by Segment
Allowance for Credit Losses Allocation of Allowance by Segment CECL Adoption ($ Thousands) January 1, 2020 June 30, 2022 September 30, 2022 Loans ACL ACL % of Loans ACL ACL % of Loans ACL ACL % of Allowance for Credit Losses (Excl LHFS) Amount Loans (Excl LHFS) Amount Loans (Excl LHFS) Amount Loans
Slide 21: Risk Grade Migration
Risk Grade Migration 1.2% 1.0% 1.1% 0.8% 0.8% 0.9% Special Mention (NBV) 1.6% 2.1% 1.8% 2.0% 2.6% 2.5% Q3-2021 Q3-2022 Diff Pool % (mln) # Loans % (mln) # Loans (mln) # Loans CRE Non-Ow ner Occupied 3.0% $45.8 21 1.6% $32.1 23 -$13.7 2 7.8% 9.5% 9.7% 8.6% CRE-Ow ner Occupied 3.4% $23.5 16 2.5% $24.4
Slide 22: Asset Quality
Asset Quality On a year-to-date basis and for the Non-Performing Assets as a % of Total Assets most recent quarter, net recoveries 0.73% 0.75% 0.73% TCBK Peers 0.68% of $430,000 and $44,000 have 0.64% 0.58% been realized. 0.54% 0.53% 0.54% 0.55% 0.51% 0.47% 0.42% 0.38% 0.38% 0.37% 0.38% Over the
Slide 23: Deposits
Deposits 23 23 Investor Presentation | Third Quarter 2022
Slide 24: Deposits: Strength in Funding
Deposits: Strength in Funding Liability Mix 09/30/2022 Loans to Core Deposits (%) Borrowings & Other TCBK Peers Time 120 Subordinated liabilities, Deposits, Debt, 1.6% 2.0% 3.4% 100 80 81.6 81.6 80.6 76.9 75.9 60 72.6 71.8 71.4 70.1 69.1 66.9 66.4 66.0 40 20 0 Non Interest- 2019 2019 2020 2020 2020
Slide 25: Deposits: Strength in Cost of Funds
Deposits: Strength in Cost of Funds $8,714 $8,757 Relationship focused market share growth. $8,656 9,000 8,000 Tempered pricing betas with continued focus on liquidity $7,237 $7,367 strength and balance sheet management. $6,863 $6,992 7,000 $3,583 $3,604 $6,506 $3,678 $6,248 $6,341 6,000 $2,943
Slide 26: Financials
Financials 26 26 Investor Presentation | Third Quarter 2022
Slide 27: Net Interest Income and NIM
Net Interest Income and NIM 2Q22 to 3Q22 Reported Net Interest Income (NII) & NIM Walk 100.0 6. 00% NII $ in millions, NIM change in bps, all full taxable equivalent (FTE) NII (FTE) NIM (FTE) NII NIM 90.0 $94.5 5. 50% 2Q22 $85.4 3.67% 80.0 $85.4 5. 00% Market rate benefit, earning assets 6.8 29 70.0
Slide 28: Current Operating Metrics
Current Operating Metrics Net Interest Margin (FTE) Efficiency Ratio 4.30% 4.47% 4.23% 4.22% 3.96% 3.58% 3.71% 68.7% 65.4% 63.7% 59.7% 58.4% 53.2% 53.4% 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% 1.89% 1.24% 1.23% 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% 12.2% 11.7% 11.4% 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 | Third Quarter 2022