Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Investor Presentation (July 2021)
29 slides from Trico Bancshares's investor presentation, July 2021
Slide 1: Investor Presentation Second Quarter 2021
INVESTOR PRESENTATION Second Quarter 2021 Richard P. Smith – President & Chief Executive Officer John S. Fleshood – EVP & Chief Operating Officer Peter G. Wiese – EVP & Chief Financial Officer July 2021 Investor Presentation
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 July 2021 Investor Presentation
Slide 4: Most Recent Quarter Highlights
MOST RECENT QUARTER HIGHLIGHTS Consistent Profitability • Pre-tax pre-provision ROAA and ROAE were 1.94% and 16.42%, respectively, for the quarter ended June 30, 2021, and 1.76% and 14.05%, respectively, for the same quarter in the prior year. • Management remains focused on disciplined expense mana
Slide 5: Company Overview
COMPANY OVERVIEW 5 July 2021 Investor Presentation
Slide 6: Company Overview
COMPANY OVERVIEW Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $42.58 Market Cap.: $1.3 Billion Asset Size: $8.2 Billion Loans: $4.9 Billion Deposits: $7.0 Billion Bank Branches: 70 ATMs: 93 Market Area: TriCo currently serves 28 counties throughout Northern and Central California. * As
Slide 7: Executive Team
EXECUTIVE TEAM Rick Smith John Fleshood Peter Wiese President & CEO EVP Chief Operating Officer EVP Chief Financial Officer TriCo since 1993 TriCo since 2016 TriCo since 2018 Greg Gehlmann Craig Carney Dan Bailey Judi Giem SVP General Counsel EVP Chief Credit Officer EVP Chief Banking Officer SVP Ch
Slide 8: Positive Earnings Track Record
POSITIVE EARNINGS TRACK RECORD $36 $1.20 $32 $28 Earnings (in Millions) $24 $0.80 Qtrly EPS (diluted) $20 $16 $12 $0.40 $8 $4 $0 Q3'17 Q4'17 * Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 $0.00 Net Income ($MM) $11.9 $3.0 $13.9 $15.0 $16.2 $23.2 $22.7 $23.1 $23
Slide 9: Shareholder Returns
SHAREHOLDER RETURNS Dividends per Share: 11.5% CAGR* Return on Avg. Shareholder Equity $1.00 13.16% Q1 Q2 Q3 Q4 $0.88 $0.82 10.75% 10.49% 10.04% 9.47% $0.66 $0.70 $0.22 $0.60 $0.22 8.10% $0.52 $0.19 7.18% $0.17 $0.22 $0.15 $0.22 $0.15 $0.17 $0.15 $0.17 $0.25 $0.13 $0.22 $0.17 $0.19 $0.15 $0.17 $0.13
Slide 10: Consistent Growth
CONSISTENT GROWTH Organic Growth and Disciplined Acquisitions CAGR 5 yrs. 10 yrs. Total Assets 13.4% 14.1% Excluding PPP 12.8% 13.8% 10 July 2021 Investor Presentation
Slide 11: Top of Mind
“TOP OF MIND” Executive Management Themes and Topics • Lending in Low and Flat Rate Environment; Transitory Versus Longer Term Impacts of Inflation; and the Timing of Fed Tapering and its Impact on Excess Market Liquidity, Consumer Spending, and Future Deposit Flows • Fiscal Policy Changes – Tax Rat
Slide 12: Loans and Credit Quality
LOANS AND CREDIT QUALITY 12 July 2021 Investor Presentation
Slide 13: Consistent Loan Growth
CONSISTENT LOAN GROWTH • 2018 includes acquisition of FNB Bancorp (Loan Yield was 5.04%) • End of period balances are presented net of fees and include LHFS. Yields based on average balance and annualized quarterly interest income. 13 July 2021 Investor Presentation
Slide 14: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO CRE Non-Owner $1,534 Occupied $1,597 CRE-Owner $660 Occupied $579 $828 Multifamily $577 $660 SFR 1-4 Term $514 Commercial & $452 Agriculture & Auto & Industrial $631 Farmland Other Construction 4% 2% 4% SFR HELOC and $325 SFR HELOC and Junior Liens $357 Junior Liens 7% CRE
Slide 15: CRE Collateral Values
CRE COLLATERAL VALUES 90% LTV Range 80% <= 60% 79% > 60% - 75% 70% > 75% 71% 60% 63% 58% 59% 58% 55% 50% 47% 45% 40% 40% 39% 41% 41% 36% 30% 26% 20% 21% 10% 8% 0% 5% 2% 2% 0% 4% 2% 0% Hotel/Motel Office Building Retail Building Warehouse Light Industrial Other Multifamily CRE Owner Occupied CRE Non
Slide 16: Unfunded Loan Commitments
UNFUNDED LOAN COMMITMENTS HELOCs – by vintage, with weighted avg. coupon Outstanding Principal ($MM) Unfunded Commitment ($MM) $99 $119 $43 $1,616 $1,551 $265 $30 $550 $365 $22 $31 $513 $2 $833 $224 $645 $666 $662 $203 $581 $588 $521 $66 $457 $63 $322 $354 $282 $203 $215 $188 $9 $56 $68 $79 2Q-2021
Slide 17: C&I Utilization
C&I UTILIZATION $700 60% 54.5% 53.3% 52.7% 52.4% $600 49.3% 50% 44.0% 42.9% $500 40% 36.4% 34.5% $400 32.7% $360 Millions of $ $254 $235 $372 $219 $207 $221 $384 30% $265 $273 $300 20% $200 $249 $248 $243 $247 $262 10% $100 $208 $205 $197 $206 $187 $0 0% 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 2Q-20
Slide 18: Loan Yield Composition
LOAN YIELD COMPOSITION • Variable rate loans at their floor as a percentage of total variable loans has risen marginally since the Q4-2020 total of 88% to 89% in Q2-2021. • The most prominent index for the variable portfolio is 5 Year Treasury CMT Fixed vs. Variable, Total Loans (ex-PPP) Variable Va
Slide 19: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Drivers of Change under CECL Gross charge offs Change in reserve Includes volume California $387 thousand for all collectively and mix change Unemployment and individually due to originations, remains the Gross recoveries analyzed loans draws, pay downs, largest
Slide 20: Allowance for Credit Losses: Allocation by Segment
ALLOWANCE FOR CREDIT LOSSES Allocation of Allowance by Segment 20 July 2021 Investor Presentation
Slide 21: Risk Grade Migration
RISK GRADE MIGRATION 0.8% 0.9% 1.0% 1.0% 1.2% 1.2% 1.4% 1.3% 3.0% 3.3% 2.9% 2.6% 4.8% 14.0% 11.4% 11.2% 13.8% 13.6% % of Loan Portfolio Outstanding, by Risk Grade 92.9% 83.9% 84.6% 85.0% 82.2% 82.1% 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 Zero balance in Doubtful and Loss Pass Watch Specia
Slide 22: Asset Quality
ASSET QUALITY NPAs have remained below Non-Performing Assets as a % of Total Assets TCBK Peers peers while loss coverage has 0.77% 0.73% 0.75% 0.73% expanded, first with the 0.64% 0.58% 0.59% 0.61% 0.58% 0.54% 0.54% 0.53% adoption of CECL, then 0.45% 0.45% 0.47% 0.43% 0.39% 0.39% through the on-goin
Slide 23: Deposits
DEPOSITS 23 July 2021 Investor Presentation
Slide 24: Deposits: Strength in Funding
DEPOSITS: STRENGTH IN FUNDING Liability Mix 06/30/2021 Loans to Core Deposits Borrowings & TCBK Peers Other 120 Time Subordinated liabilities, Deposits, Debt, 1.4% 1.6% 100 4.5% 80 81.6 81.6 80.7 80.6 79.1 78.1 76.8 76.9 76.3 75.9 75.5 60 72.7 71.8 70.2 40 20 0 Non Interest- 2018 2018 2018 2018 2019
Slide 25: Deposits: Strength in Cost of Funds
DEPOSITS: STRENGTH IN COST OF FUNDS $6,863 $6,992 $6,506 $6,248 $6,341 $5,366 $5,430 $5,342 $5,367 $5,403 $5,295 $2,767 $2,844 $2,582 Continued growth $2,487 $2,518 in the volume of $1,761 $1,762 $1,780 $1,777 $1,833 $1,883 non-interest bearing deposits both in terms of dollars and as a percent of
Slide 26: Financials
FINANCIALS 26 July 2021 Investor Presentation
Slide 27: Consistent Operating Metrics
CONSISTENT OPERATING METRICS Net Interest Margin (FTE) Efficiency Ratio 4.47% 4.32% 4.30% 68.7% 4.23% 4.22% 65.1% 65.4% 3.96% 63.7% 59.7% 58.4% 3.66% 51.8% 2015 2016 2017 2018 2019 2020 Q2 2021 2015 2016 2017 2018 2019 2020 Q2 2021 PPNR as % of Average Assets ROAA 1.57% 1.94% 2.02% 1.43% 1.79% 1.73%
Slide 28: Well Capitalized
WELL CAPITALIZED Tier 1 Capital Ratio CET1 Ratio 14.4% 13.3% 14.0% 14.1% 13.8% 13.7% 13.7% 12.9% 13.0% 13.2% 12.5% 12.2% 12.2% 11.7% 2015 2016 2017 2018 2019 2020 Q2 2021 2015 2016 2017 2018 2019 2020 Q2 2021 Total Risk Based Capital Tangible Common Equity Ratio 10.6% 15.1% 15.1% 15.2% 15.3% 14.8% 1
Slide 29: July Investor Presentation August
29 July 20212020 August Investor Presentation