Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Investor Presentation (April 2024)
37 slides from Trico Bancshares's investor presentation, April 2024
Slide 1: Investor Presentation First Quarter 2024
Richard P. Smith, President & Chief Executive Officer Investor Presentation Daniel K. Bailey, EVP & Chief Banking Officer First Quarter 2024 John S. Fleshood, EVP & Chief Operating Officer Peter G. Wiese, EVP & Chief Financial Officer Investor Presentation | First Quarter 2024
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: Tri Counties Bank Awards
Tri Counties Bank Awards Chico Enterprise Record Sacramento Rainbow Chamber Forbes Magazine Readers' Choice Best Bank of Commerce Best-In-State Bank Won every year from 2019 to Corporate Advocate of the Year 2021 2023 2024 Style Magazine Chico News & Review Gustine Press-Standard Reader's Choice – B
Slide 4: Executive Team
Executive Team Rick Smith Dan Bailey Craig Carney John Fleshood Peter Wiese President & EVP EVP EVP EVP Chief Executive Officer Chief Banking Officer Chief Credit Officer Chief Operating Officer Chief Financial Officer Greg Gehlmann Judi Giem Jason Levingston Angela Rudd Scott Robertson SVP SVP SVP
Slide 5: Agenda
Agenda Most Recent Quarter Recap Company Overview Lending Overview Deposit Overview Financials Investor Presentation | First Quarter 2024 5
Slide 6: Most Recent Quarter Highlights
Most Recent Quarter Highlights Pre-tax pre-provision ROAA and ROAE were 1.71% and 14.38%, respectively, for the quarter ended March 31, Operating Leverage 2024, and 2.18% and 19.83%, respectively, for the same quarter in the prior year Our efficiency ratio was 57.4% for the quarter ended March 3
Slide 7: Company Overview
Company Overview Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $36.78 Market Cap.: $1.22 Billion Asset Size: $9.81 Billion Loans: $6.80 Billion Deposits: $7.99 Billion Bank Branches: 69 ATMs: 86 Bank ATMs, with access to ~ 40,000 in network Market Area: TriCo currently serves 31 countie
Slide 8: Recurring Critical and Strategic Themes Noted in Recent Executive Discussions
“Recurring Critical and Strategic Themes Noted in Recent Executive Discussions” Scaling and Leverage: Regulatory Focus Areas: Finding the right partner(s) at the right time Enterprise Risk Management, Compliance to cross $10 Billion in total assets (including CRA & ESG), CFPB preparedness, and t
Slide 9: Positive Earnings Track Record
Positive Earnings Track Record July 2018 2020 March 2022 $40 Acquired FNB Bancorp Elevated ACL Provisioning Acquired Valley Republic Bancorp $1.20 ($1.2B assets) Associated with COVID ($1.4B assets) Related Risks $36 $32 $28 Earnings (in Millions) $0.80 $24 Qtrly EPS (diluted) $20 $16 $0.40 $12 $8 $
Slide 10: Shareholder Returns
Shareholder Returns Dividends per Share: 10% CAGR* Return on Avg. Shareholder Equity 12.10% 11.67% Q1 Q2 Q3 Q4 $1.20 10.75% 10.49% 10.65% $1.25 $1.10 9.50% $1.00 $0.88 $0.30 $0.82 $0.30 $1.00 $0.25 7.18% $0.70 $0.22 $0.75 $0.22 $0.30 $0.19 $0.25 $0.30 $0.22 $0.22 $0.30 $0.50 $0.17 $0.25 $0.25 $0.19
Slide 11: Asset Growth
CAGR, Assets Asset Growth 5 yrs. 10 yrs. 8.7% 13.5% Organic Growth and Disciplined Acquisitions Trailing 9 years Trailing 5 quarters Asset Dollars in Billions Investor Presentation | First Quarter 2024 11
Slide 12: Deposits
Deposits Investor Presentation | First Quarter 2024 12
Slide 13: Liability Mix: Strength in Funding
Liability Mix: Strength in Funding Liability Mix 03/31/2024 Loans to Core Deposits (%) Borrowings Other Other TCBK Peers Borrowings&& liabilities, liabilities, 120 Subordinated Subordinated Debt, 2.0% 2.1% Debt,5.7% 8.4% 100 Time 80 87.7 87.7 Time 84.0 80.4 Deposits, 79.5 76.5 Deposits, 60 72.1 71.8
Slide 14: Deposits: Strength in Cost of Funds
Deposits: Strength in Cost of Funds Relationship focused pricing for retention and acquisition $8,757 Continued best in class total deposit Beta, $8,714 $8,656 9,000 $8,329 22.3% cycle to date 8,000 $8,026 $8,095 $8,010 $7,834 $7,988 $7,237 $7,367 $6,863 $6,992 7,000 $3,583 $3,604 $3,678 $2,600
Slide 15: Deposits by Region
$0-$100k >$100k-$250k >$250k - $500k >$500k - $1mln >$1mln 800 Prior Quarter Deposits by Region 700 $1.211 billion, total 600 500 $605 400 Northern 300 200 $284 100 $160 - $76 $86 800 700 $840 $2.287 billion, total 600 500 Greater Chico 400 $496 300 $427 200 $309 100 $215 - 800 Sacramento Valley $1.
Slide 16: Deposits: Demand & Savings Deposit Mix
Deposits: Demand & Savings Deposit Mix Total Demand & Savings Balance Tier, $ millions [1] ($ millions exterior, count interior) Consumer Business Prior Quarter, Total # 386 35,208 1,351 Business Consumer $3,149 $3,435 # 200,875 1,582 785 428 255 481 455 426 436 [1] Excludes time deposits, bank owne
Slide 17: Deposits: CD Balance and Maturity Composition
Deposits: CD Balance and Maturity Composition $1,000.00 CD Growth 4.50% CDs by Remaining Maturity $500 5.00% 4.15% $450 4.54% 4.50% $900.00 4.00% $904 $400 4.05% 4.00% 3.63% $350 3.54% 3.50% $800.00 3.50% $300 3.14% 3.00% 3.22% $250 2.50% $700.00 3.00% $200 $411 2.00% 2.76% $312 $630 $150 1.50% $600
Slide 18: Liquidity
Liquidity Pledged Securities as % of Total Securities [3] TCBK Peers 55.9 55.3 50.4 In addition to a strong deposit base, Tri Counties Bank maintains a variety 40.1 37.5 37.2 35.7 37.1 36.3 35.7 39.6 34.2 of easily accessible funding sources. 30.8 25.2 25.3 25.3 25.3 21.5 21.9 21.8 22.8 19.0 17.6 18
Slide 19: Loans and Credit Quality
Loans and Credit Quality 19 Investor Presentation | First Quarter 2024 19
Slide 20: Loan Portfolio and Yield
Loan Portfolio and Yield 6.50% $6,795 $6,802 $6,709 $6,452 $6,521 $6,422 $6,313 $6,000 $6,097 $5,796 $5,000 5.72% 5.44% $4,859 5.64% $4,739 5.50% $4,711 $4,610 5.52% 5.24% $4,381 $4,386 $4,407 $4,443 5.38% $4,000 $4,111 5.15% $4,022 5.09% 5.23% 5.21% 4.92% 4.96% 5.10% 5.05% 4.88% $3,000 4.86% 4.78%
Slide 21: Gross Production vs. Payoff
Gross Production vs. Payoff In addition to the nearly TCBK originated nearly Originations and net loan Slower pace of originations $0.8 billion in non-PPP loan $1.5 billion in 2021, while growth in 2022 were commensurate with market originations in 2020, TCBK facing headwinds of an supportive of the
Slide 22: Diversified Loan Portfolio
Diversified Loan Portfolio CRE Non- $2,221 Multifamily Occupied Occupied 1Q-2024 Owner 1Q-2023 $2,161 1Q-2024 $975 Owner CRE- 1Q-2023 $971 1Q-2024 $982 1Q-2023 $947 1Q-2024 $885 Agriculture Constructio and Junior Commercial SFR 1-4 Term 1Q-2023 $804 & Industrial 1Q-2024 $550 Auto & Other Agriculture
Slide 23: Office RE Collateral
Office RE Collateral CRE loans secured by office collateral represents 9.6% of total Loan Portfolio Commitments. California Office Secured by Region Regions by Collateral Code Regions by Occupancy Type Graph circle size represent total loan Commitments in the Region; regional assignment based upon Z
Slide 24: CRE Collateral Values
CRE Collateral Values Distribution by LTV (1) 100% LTV Range 90% <= 60% > 60% - 75% 80% > 75% 81% 81% 75% 70% 69% 60% 61% 58% 50% 53% 49% 40% 44% 44% 41% 39% 30% 29% 20% 22% 19% 19% 10% 2% 3% 0% 0% 0% 3% 1% 7% 0% Retail Building Office Building Hotel/Motel Light Industrial Mixed Use - Retail Other M
Slide 25: Unfunded Loan Commitments
Unfunded Loan Commitments Outstanding Principal ($MM) Unfunded Commitment ($MM) HELOCs – by vintage, with weighted avg. coupon (9.14% total WAC) 9.80% 9.71% 9.63% 9.67% $225 9.44% $200 9.36% 9.42% 9.60% 9.40% 9.29% 9.23% $175 9.20% 9.04% 8.98% 9.10% $150 $143 9.00% 8.81% $125 $162 8.72% 8.70% 8.80%
Slide 26: C&I Utilization
C&I Utilization C&I Utilization by NAICS Industry: 1Q-2024 Utilization has remained stable $198 Outstanding (mln) Unfunded (mln) throughout the rising rate environment $188 20000% $169 C&I yields are generally tied to 15000% $104 changes in the Prime Rate. 10000% $81 $63 $53 $46 $48 $38 $44 $41
Slide 27: Loan Yield Composition
Floating 14% Loan Yield Composition Fixed 38% 62% Adjustable + Floating 99% of Floating Predominantly benchmarked Adjustable benchmarked to Prime to 5 Year Treasury 48% 1,000 10.00% 9.11% 900 9.07% 9.00% 800 8.00% 7.54% 7.19% 7.34% 7.19% 7.26% 700 7.06% 7.00% 600 6.11% 6.00% 5.40% 500 4.92% 4.79% 5.
Slide 28: Allowance for Credit Losses
Allowance for Credit Losses Drivers of Change under CECL 1.79% 1.83% of Total of Total Loans Loan portfolio Gross charge-offs Driven by specific Primarily driven Loans growth of $6.2 $1.275 million reserve decrease by Qualitative million in Q1 $1.609 million, factors for Gross recoveries p
Slide 29: Allowance for Credit Losses: Allocation by Segment
Allowance for Credit Losses Allocation of Allowance by Segment Investor Presentation | First Quarter 2024 29
Slide 30: Risk Grade Migration
Risk Grade Migration Special Mention (NBV) 1.1% 1.0% 1.0% 1.2% 1.3% 1.1% 100% Q1-2023 Q1-2024 Diff 2.0% 2.0% 2.4% 1.4% 1.5% 1.6% Pool % (mln) # Loans % (mln) # Loans (mln) # Loans 8.0% 9.2% 8.8% 11.4% CRE Non-Ow ner Occupied 2.5% $54.4 29 1.7% $37.6 12 -$16.9 -17 12.1% 13.8% CRE-Ow ner Occupied 2.7%
Slide 31: Asset Quality
Asset Quality Non-Performing Assets as a % of Total Assets The Bank continues to actively and TCBK Peers aggressively address potential credit 0.68% 0.64% issues with short resolution timelines. 0.60% 0.53% 0.50% 0.48% 0.46% Over the past three years, both the 0.38% 0.42% 0.37% 0.38% 0.34% 0.34%
Slide 32: Financials
Financials 32 Investor Presentation | First Quarter 2024 32
Slide 33: Net Interest Income (NII) and Margin (NIM)
Net Interest Income (NII) and Margin (NIM) Investor Presentation | First Quarter 2024 33
Slide 34: Net Interest Income (NII) and Margin (NIM)
Net Interest Income (NII) and Margin (NIM) Investor Presentation | First Quarter 2024 34
Slide 35: Current Operating Metrics
Current Operating Metrics Net Interest Margin (FTE) Efficiency Ratio 4.30% 4.47% 3.96% 3.88% 3.96% 3.58% 3.68% 63.7% 59.7% 58.4% 57.4% 53.2% 53.0% 55.8% 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 PPNR as % of Average Assets ROAA 1.43% 1.43% 1.94% 1.91% 1.97% 1.87% 1.28% 1.
Slide 36: Well Capitalized
Well Capitalized Tier 1 Capital Ratio CET1 Ratio 14.4% 14.2% 13.3% 13.2% 13.7% 14.0% 12.9% 13.2% 12.5% 12.2% 12.5% 12.9% 11.7% 12.4% 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 Total Risk Based Capital Tangible Capital Ratio 15.4% 10.6% 15.1% 15.2% 15.0% 14.4% 14.7% 9.5% 9.
Slide 37: Our Mission, Core Values, Team Ethos
Our Mission Core Values Team Ethos Tri Counties Bank exists for Trust We are one team, aligned, just one purpose: to improve Respect customer-focused and the financial success and collaborative to achieve well-being of our shareholders, Integrity next-level performance. customers, communities and Co
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