Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Investor Presentation (October 2024)
37 slides from Trico Bancshares's investor presentation, October 2024
Slide 1: Investor Presentation Third Quarter 2024
Richard P. Smith, President & Chief Executive Officer Investor Presentation Daniel K. Bailey, EVP & Chief Banking Officer Third Quarter 2024 John S. Fleshood, EVP & Chief Operating Officer Peter G. Wiese, EVP & Chief Financial Officer Investor Presentation | Third 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 Forbes Magazine Sacramento Business Journal S&P Global Market Intelligence Cen Cal Business Finance Group America’s Best Banks Best Places to Work Top Community Bank with SBA-504 Lender of the Year 2024 2024 $3 billion to $10 billion in assets 2023 2022, 2023 Sacramento Cali
Slide 4: Executive Team
Executive Team Rick Smith Dan Bailey Craig Carney John Fleshood Bret Funderburgh Greg Gehlmann President & EVP EVP EVP SVP SVP Chief Executive Officer Chief Banking Officer Chief Credit Officer Chief Operating Officer Deputy Chief General Counsel Credit Officer Judi Giem Jason Levingston Scott Myers
Slide 5: Agenda
Agenda Most Recent Quarter Recap Company Overview Lending Overview Deposit Overview Financials Investor Presentation | Third Quarter 2024 5
Slide 6: Most Recent Quarter Highlights
Most Recent Quarter Highlights Pre-tax pre-provision ROAA and ROAE were 1.20% and 9.52%, respectively, for the quarter ended September Operating Leverage 30, 2024, and 1.23% and 10.91%, respectively, for the same quarter in the prior year. Our efficiency ratio was 60.0% for the quarter ended Sep
Slide 7: Company Overview
Company Overview Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $42.65 Market Cap.: $1.41 Billion Asset Size: $9.82 Billion Loans: $6.68 Billion Deposits: $8.04 Billion Bank Branches: 68 ATMs: 84 Bank ATMs, with access to ~ 40,000 in network Market Area: TriCo currently serves 31 countie
Slide 8: Positive Earnings Track Record
Positive Earnings Track Record 2020 March 2022 Elevated ACL Provisioning Acquired Valley Republic Bancorp Associated with COVID ($1.4B assets) $40 Related Risks $1.20 $36 $32 $28 Earnings (in Millions) $0.80 $24 Qtrly EPS (diluted) $20 $16 $0.40 $12 $8 $4 $0 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21
Slide 9: 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 9.67% $1.00 $0.88 $0.30 $0.30 $1.00 $0.82 7.18% $0.70 $0.25 $0.33 $0.75 $0.22 $0.22 $0.30 $0.19 $0.25 $0.30 $0.22 $0.22 $0.33 $0.30 $0.50 $0.17 $0.25
Slide 10: Asset Growth
CAGR, Assets Asset Growth 5 yrs. 10 yrs. 9.0% 13.4% Organic Growth and Disciplined Acquisitions Trailing 10 years Trailing 5 quarters • Asset Dollars in Billions Investor Presentation | Third Quarter 2024 10
Slide 11: Deposits
Deposits Investor Presentation | Third Quarter 2024 11
Slide 12: Liability Mix: Strength in Funding
Liability Mix: Strength in Funding Liability Mix 09/30/2024 Loans to Core Deposits (%) Borrowings & Other TCBK Peers Subordinated liabilities, 120 Debt, 4.3% 2.1% 100 80 87.7 87.7 86.6 86.5 Time 84.0 80.4 79.5 76.5 Deposits, 60 72.1 69.1 66.9 66.4 66.0 12.7% 40 20 Non Interest- bearing Demand 0 Depo
Slide 13: Deposits: Strength in Cost of Funds
Deposits: Strength in Cost of Funds 9,000 $8,714 $8,757 $8,656 $8,329 $8,026 $8,095 $8,010 $7,988 $8,050 $8,037 8,000 $7,834 $7,237 $7,367 7,000 $3,583 $3,604 $3,678 $2,600 $2,557 $2,548 $3,502 $3,073 $2,858 $2,723 $3,237 6,000 $2,943 $2,980 5,000 4,000 $4,415 $4,458 $4,399 $4,414 3,000 $4,783 $4,82
Slide 14: Deposits: Demand & Savings Deposit Mix
Deposits: Demand & Savings Deposit Mix Consumer Total Demand & Savings Balance Tier, $ millions [1] Business ($ millions-exterior, # of accounts-interior) Prior Quarter, Total 348 # 35,247 1,453 Consumer Business $3,238 $3,271 # 199,311 1,496 733 253 407 481 456 447 434 [1] Excludes time deposits, b
Slide 15: Deposits: CD Balance and Maturity Composition
Deposits: CD Balance and Maturity Composition CD Growth $600 CDs by Remaining Maturity 5.00% 5.00% 4.50% 4.40% 4.30% $500 $1,000.00 4.31% $1,041 4.50% 3.99% 4.00% 4.26% 4.15% $979 3.50% $400 4.00% $904 3.00% 3.63% $300 2.50% $800.00 $575 3.50% 3.22% 2.00% $200 1.78% 3.00% $358 1.50% 2.76% 1.00% $600
Slide 16: Liquidity
Liquidity Pledged Securities as % of Total Securities [3] TCBK Peers 56.3 55.7 55.8 54.9 In addition to a strong deposit base, 50.4 52.9 Tri Counties Bank maintains a variety 39.6 of easily accessible funding sources. 35.7 34.9 37.1 36.3 35.7 36.5 37.6 33.6 30.7 25.3 25.3 25.3 21.8 22.8 19.0 17.6 18
Slide 17: Loans and Credit Quality
Loans and Credit Quality 17 Investor Presentation | Third Quarter 2024 17
Slide 18: Loan Portfolio and Yield
Loan Portfolio and Yield $6,795 $6,795 $6,802 $6,743 Total Loans Loan Yield $6,709 $6,686 $6,450 $6,000 5.82% 5.83% 6.00% 5.72% 5.62% 5.64% 5.52% 5.51% $5,000 5.44% 5.44% 5.32% $4,917 5.24% $4,763 5.16% $4,307 $4,000 5.00% $4,022 5.02% 4.97% 4.86% $3,000 $3,015 $2,760 $2,523 $2,000 $2,283 4.00% $1,0
Slide 19: Gross Production vs. Payoff
Gross Production vs. Payoff TCBK originated nearly Originations and net loan Slower pace of originations $1.5 billion in 2021, while growth in 2022 were commensurate with market facing headwinds of an supportive of the positive mix rate changes, liquidity increased $372 million in shift in earning a
Slide 20: Diversified Loan Portfolio
Diversified Loan Portfolio CRE Non- $2,252 Occupied 3Q-2024 Owner 3Q-2023 $2,172 Occupied Multifamily 3Q-2024 $1,020 3Q-2023 $959 CRE-Owner 3Q-2024 $947 3Q-2023 $957 3Q-2024 $868 SFR 1-4 Term 3Q-2023 $871 HELOC and Commercial & Farmland Construction Junior Liens & Industrial 3Q-2024 $485 Agriculture
Slide 21: Office RE Collateral
Office RE Collateral California Office Secured by Region Regions by Collateral Code Regions by Occupancy Type Graph circle size represent total loan Commitments in the Region; regional assignment based upon ZIP code of collateral Investor Presentation | Third Quarter 2024 21
Slide 22: CRE Collateral Values
CRE Collateral Values Distribution by LTV (1) 100% LTV Range 90% <= 60% > 60% - 75% 80% > 75% 78% 79% 70% 73% 69% 60% 64% 56% 50% 54% 50% 40% 43% 43% 43% 36% 30% 30% 20% 24% 22% 21% 10% 1% 3% 0% 0% 0% 3% 1% 7% 0% Retail Building Office Building Hotel/Motel Light Industrial Mixed Use - Retail Other M
Slide 23: Unfunded Loan Commitments
Unfunded Loan Commitments Outstanding Principal ($MM) HELOCs – by vintage, with weighted avg. coupon (9.17% total WAC) Unfunded Commitment ($MM) 10.00% $225 9.73% 9.80% 9.59% $200 9.51% 9.60% 9.37% 9.42% $175 9.31% $158 9.40% 9.21% 9.19% $150 $174 9.09% $125 9.20% 9.02% 8.94% 9.00% 8.85% 8.87% $100
Slide 24: C&I Utilization
C&I Utilization C&I Utilization by NAICS Industry: 3Q-2024 Utilization has remained stable $188 Outstanding (mln) Unfunded (mln) throughout the rising rate environment $180 20000% $164 C&I yields are generally tied to 15000% $106 changes in the Prime Rate. 10000% $61 $63 $58 $57 $51 $44 $49 Pa
Slide 25: Loan Yield Composition
Floating 13% Loan Yield Composition Fixed 38% 62% Adjustable + Floating 99% of Floating Predominantly benchmarked Adjustable benchmarked 1,000 to Prime to 5 Year Treasury 49% 10.00% 900 9.00% 8.81% 8.66% 800 8.00% 700 6.89% 6.94% 7.00% 6.74% 6.53% 6.50% 6.57% 600 6.00% 5.81% 5.33% 5.39% 5.41% 500 5.
Slide 26: Adjustable Rate Loans
Adjustable Rate Loans 7.02% Quarter-over-quarter change $293 6.73% $84 $12 $3,259 $3,259 $3,242 ($52) ($15) ($147) 5.12% 5.07% 5.58% 5.12% 5.66% WAR WAR WAR $3,101 Scaled to $3,000MM 6/30/2024 Originations Payoffs Paydowns 9/30/2024 $3,400 5.12% 5.20% 5.07% 4.80% WAR $3,200 5.00% 4.80% $3,000 4.80%
Slide 27: Fixed Rate Loans
Fixed Rate Loans 4.80% 4.80% $2,750 4.80% $2,700 4.75% $2,650 4.70% 4.62% 4.65% $2,600 Includes 4.60% 7.56% $2,550 principal 4.55% $176 amortization $2,500 4.50% as well as $2,450 4.45% transfers of loans out of $2,400 4.40% construction Balance WAR ($142) $2,700 5.90% 6.89% $40 $2,597 ($22) $2,555
Slide 28: Allowance for Credit Losses
Allowance for Credit Losses Drivers of Change under CECL $127,000 $4,154 $125,000 ($2,399) $123,760 $123,517 $123,000 1.83% ($1,434) 1.85% ($77) of Total of Total $121,000 Loans Loan portfolio Gross charge-offs Driven by specific Primarily driven Loans declined $59 $0.444 million reserve inc
Slide 29: Allowance for Credit Losses
Allowance for Credit Losses Allocation of Allowance by Segment Investor Presentation | Third Quarter 2024 29
Slide 30: Risk Grade Migration
Risk Grade Migration 100% 1.0% 1.2% 1.3% 1.1% 1.6% 1.8% 2.4% 1.4% 1.5% 1.6% 1.5% 1.6% 8.8% 11.4% 12.1% 13.8% 13.3% 14.1% 80% 60% 87.8% 86.0% 85.0% 83.5% 83.6% 82.6% 40% 20% 0% 2Q-2023 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 Pass Watch Special Mention Substandard Zero balance in Doubtful and Loss Inv
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 0.60% 0.53% 0.53% 0.55% issues with short resolution timelines. 0.50% 0.46% 0.48% 0.44% 0.37% 0.38% 0.37% 0.39% 0.34% 0.34% 0.32% 0.35% 0.37% 0.35% Over
Slide 32: Financials
Financials 32 Investor Presentation | Third Quarter 2024 32
Slide 33: Net Interest Income (NII) and Margin (NIM)
Net Interest Income (NII) and Margin (NIM) Investor Presentation | Third Quarter 2024 33
Slide 34: Net Interest Income (NII) and Margin (NIM)
Net Interest Income (NII) and Margin (NIM) Investor Presentation | Third 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% 3.69% 63.7% 59.7% 58.4% 55.8% 59.0% 53.2% 53.0% 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% 14.0% 13.8% 12.9% 13.1% 13.7% 12.5% 12.9% 12.2% 12.4% 11.7% 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 Total Risk Based Capital Tangible Capital Ratio 15.4% 15.6% 10.6% 15.1% 15.2% 14.7% 9.5% 9.7% 14.
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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