Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Investor Presentation (April 2022)
28 slides from Trico Bancshares's investor presentation, April 2022
Slide 1: Investor Presentation First Quarter 2022
Investor Presentation First 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 | First Quarter 2022
Slide 4: Most Recent Quarter Highlights
Most Recent Quarter Highlights Consistent Profitability • Pre-tax pre-provision ROAA and ROAE were 1.69% and 14.70%, respectively, for the quarter ended March 31, 2022, and 2.13% and 17.65%, respectively, for the same quarter in the prior year • Our efficiency ratio was 56.0% for the quarter ended M
Slide 5: Company Overview
Company Overview Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $40.03 Market Cap.: $1.4 Billion Asset Size: $10.1 Billion Loans: $5.9 Billion Deposits: $8.7 Billion Bank Branches: 72 ATMs: 86 Bank ATMs, with access to over 37,000 network ATMs Market Area: TriCo currently serves 31 count
Slide 6: 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 7: 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 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 Q3'21 Q4'21 Q1'22 $0.00 Net Income ($MM) $13.9 $15.0 $16.2 $23.2 $22.7 $23.1 $23.4 $22.
Slide 8: Shareholder Returns
Shareholder Returns Dividends per Share: 10.6% CAGR* Return on Avg. Shareholder Equity 12.10% Q1 Q2 Q3 Q4 10.75% 10.49% $1.25 $1.00 9.47% $0.82 $0.88 8.19% 8.10% $1.00 $0.70 $0.25 7.18% $0.60 $0.66 $0.22 $0.22 $0.75 $0.17 $0.19 $0.25 $0.50 $0.15 $0.22 $0.22 $0.15 $0.17 $0.17 $0.25 $0.19 $0.22 $0.25
Slide 9: Consistent Growth
Consistent Growth Organic Growth and Disciplined Acquisitions March 2022 Acquired Valley Republic Bancorp ($1.4B assets) CAGR 5 yrs. 10 yrs. 25.80 July 2018 Total Assets 17.4% 14.9% Acquired FNB Bancorp ($1.2B assets) $12 March 2016 23.09 23.04 $24.00 Acquired 3 Branches January 2014 from BofA 21.69
Slide 10: Merger – Valley Republic Bancorp
Merger – Valley Republic Bancorp Acquisition & Conversion Completed in March 2022 Market Overview • Three full-service branches in Bakersfield and one in Delano, each converted to a Tri Counties Bank branch • One loan production office in Fresno that will be incorporated into existing overlapping Tr
Slide 11: Loans and Credit Quality
Loans and Credit Quality 11 11 Investor Presentation | First Quarter 2022
Slide 12: Consistent Loan Growth
Consistent Loan Growth $6,000 $57 $5,796 6.50% $5,000 $361 $240 $151 $61 $423 $426 $327 $4,859 $4,711 $4,739 $4,610 $4,381 $4,386 $4,407 $4,443 $4,111 $4,000 $4,022 5.50% 5.24% 5.44% 5.09% 5.15% $3,000 5.23% 4.92% 4.96% 5.05% 4.86% 4.78% $2,000 4.69% 4.50% $1,000 $0 3.50% 2018 2019 Q1 2020 Q2 2020 Q
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 in TCBK originated nearly $1.5 billion loans in 2019, while facing headwinds non-PPP loan originations in 2020, in 2021, compared to nearly $0.8 of outpacing payoffs in excess of $0.6 TCBK origina
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio CRE Non- Multifamily Occupied Occupied 1Q-2022 $1,634 $243 Owner 1Q-2021 $1,558 1Q-2022 $716 $136 Owner CRE- 1Q-2021 $637 1Q-2022 $819 $19 1Q-2021 $765 1Q-2022 $669 SFR 1-4 $33 Term 1Q-2021 $641 HELOC Commerci Industrial 1Q-2022 $272 $165 al & 1Q-2021 $186 Agriculture & Au
Slide 15: Unfunded Loan Commitments
Unfunded Loan Commitments HELOCs – by vintage, with weighted avg. coupon Outstanding Principal ($MM) 6.00% $175 Unfunded Commitment ($MM) 4.98% 4.62% 4.42% 4.47% 4.60% $150 5.00% 4.37% 4.30% 4.37% 4.44% 4.45% 4.40% 4.01% 3.74% 3.79% $125 4.00% 3.29% $158 $100 3.00% $75 2.00% $50 $113 1.00% $25 0.00%
Slide 16: C&I Utilization
C&I Utilization 20000% C&I Utilization by NAICS Industry: 1Q-2022 • Benefits of the VRB merger 18000% Outstanding (mln) Unfunded (mln) include increased actual and 16000% 14000% potential utilization rate and 12000% $100 $85 $80 balance growth $83 10000% $81 $80 8000% $54 $59 6000% $51 $49 $47 $53 •
Slide 17: Loan Yield Composition
$3,350 $2,534 Variable Fixed Loan Yield Composition 57% 43% 40% of loans repricing 72% of variable loans repricing Loans repricing or maturing in the next monthly are at floor 1-2 yrs. are at rate floors, 2-5 present upside in yield as exhibited rates, 99% are and 77% are benchmarked to 5 in the dif
Slide 18: Allowance for Credit Losses Drivers of Change under CECL
Allowance for Credit Losses Drivers of Change under CECL Continued improvement in 1.64% Unemployment of Total Rate and low loss experience drive Loans reduce reserve requirements, offset by Non-PCD loan uncertainty risks acquired from in US Policy and Valley Republic of Global Economy Gross ch
Slide 19: Allowance for Credit Losses Allocation of Allowance by Segment
Allowance for Credit Losses Allocation of Allowance by Segment CECL Adoption ($ Thousands) January 1, 2020 December 31, 2021 March 31, 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 20: Risk Grade Migration
Risk Grade Migration 1.0% 1.2% 1.2% 1.0% 1.1% 0.8% Special Mention (NBV) 3.3% 2.9% 2.6% 2.5% 1.6% 2.1% Q1-2021 Q1-2022 Diff 7.8% 9.5% Pool % (mln) # Loans % (mln) # Loans (mln) # Loans 11.2% 9.3% 11.4% 13.6% CRE Non-Ow ner Occupied 3.9% $61.2 24 1.9% $35.3 24 -$25.9 0 CRE-Ow ner Occupied 2.6% $16.4
Slide 21: Asset Quality
Asset Quality Non-Performing Assets as a % of Total Assets NPAs have remained below peers TCBK Peers while loss coverage has expanded, 0.73% 0.75% 0.73% 0.68% first with the adoption of CECL, then 0.58% 0.59% 0.61% 0.58% 0.64% 0.54% through the on-going concerns of the 0.47% 0.53% 0.53% 0.45% pandem
Slide 22: Deposits
Deposits 22 22 Investor Presentation | First Quarter 2022
Slide 23: Deposits: Strength in Funding
Deposits: Strength in Funding Liability Mix 03/31/2022 Loans to Core Deposits (%) Borrowings & TCBK Peers Other 120 Time Subordinated liabilities, Deposits, Debt, 1.5% 1.7% 100 3.9% 80 81.6 81.6 80.6 78.1 76.9 75.9 75.5 60 72.6 71.8 70.1 66.9 66.9 66.0 40 20 0 Non Interest- 2019 2019 2019 2019 2020
Slide 24: Deposits: Strength in Cost of Funds
Deposits: Strength in Cost of Funds 9,000 $8,714 Continued growth in the volume of 8,000 $7,367 noninterest- $6,992 $7,237 $6,863 bearing deposits $3,583 7,000 $6,506 $6,248 $6,341 both in terms of dollars and as a $2,980 6,000 $5,430 $5,342 $5,367 $5,403 $2,943 $5,295 $2,767 $2,844 percent of tot
Slide 25: Financials
Financials 25 25 Investor Presentation | First Quarter 2022
Slide 26: Current Operating Metrics
Current Operating Metrics Net Interest Margin (FTE) Efficiency Ratio 4.47% Adjusted for Merger 4.23% 4.30% 68.7% 4.22% 65.4% 3.96% 63.7% 59.7% 58.4% 3.58% 55.9% 3.39% 53.2% 51.1% 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%
Slide 27: 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% 13.1% 12.5% 12.3% 12.2% 11.7% 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Total Risk Based Capital Tangible Common Equity Ratio 15.4% 10.6% 15.1% 15.2% 15.0% 14.8% 14.4% 9
Slide 28: XYZ
Pending update – no material change to format XYZ 28 Investor Presentation | First Quarter 2022
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