Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Q3 2023 Earnings Presentation
35 slides from Trico Bancshares's earnings presentation, Oct 25, 2023
Slide 1: Investor Presentation Third Quarter 2023
Investor Presentation Third Quarter 2023 Richard P. Smith, President & Chief Executive Officer Dan K. Bailey, EVP & Chief Banking Officer John S. Fleshood, EVP & Chief Operating Officer Peter G. Wiese, EVP & Chief Financial Officer Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement Investor Presentation | Third Quarter 20232 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 statem
Slide 3: Tri Counties Bank
Tri Counties Bank Investor Presentation | Third Quarter 20233
Slide 4: Agenda
Agenda • Most Recent Quarter Recap • Company Overview • Lending Overview • Deposit Overview • Financials 4 • 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
Slide 5: Most Recent Quarter Highlights
Most Recent Quarter Highlights Investor Presentation | Third Quarter 20235 • Pre-tax pre-provision ROAA and ROAE were 1.86% and 16.49%, respectively, for the quarter ended September 30, 2023, and 2.16% and 20.41%, respectively, for the same quarter in the prior year • Our efficiency ratio was 55.6%
Slide 6: Company Overview
Company Overview Investor Presentation | Third Quarter 20236 Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $32.03 Market Cap.: $1.07 Billion Asset Size: $9.90 Billion Loans: $6.71 Billion Deposits: $8.01 Billion Bank Branches: 69 ATMs: 87 Bank ATMs, with access to ~ 40,000 in network Ma
Slide 7: Recurring Critical and Strategic Themes Noted in Recent Executive Discussions
7 “Recurring Critical and Strategic Themes Noted in Recent Executive Discussions” • Continued Identification and Acquisition of New Customer Relationships While Expanding Services to Existing Customers – A Holistic Understanding of Their Balance Sheet and Ours • Capital – Balance of Regulatory and S
Slide 8: Positive Earnings Track Record
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Net Income ($MM) $13.9 $15.0 $16.2 $23.2 $22.7 $23.1 $23.4 $22.9 $16.1 $7.4 $17.6 $23.6 $33.6 $28.4 $27.4 $28.2 $20.4 $31.4 $37.3 $36.3 $35.8 $24.9 $30.6 Qtrly Di
Slide 9: Shareholder Returns
37% 27% 27% 41% 25% 29% 33% 2017 2018 2019 2020 2021 2022 2023 $0.52 $0.60 $0.74 $0.53 $1.13 $0.67 $1.07 $0.58 $0.65 $0.75 $0.25 $0.95 $0.93 $0.75 $0.51 $0.53 $0.76 $0.59 $0.92 $1.12 $0.92 $0.76 $0.75 $0.79 $0.94 $1.09 $1.74 $2.54 $3.00 $2.16 $3.94 $3.83 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.
Slide 10: Consistent Growth
Consistent Growth Investor Presentation | Third Quarter 202310 Organic Growth and Disciplined Acquisitions Asset Dollars in Billions. 10 yrs.5 yrs. 14.2%9.4% CAGR, Assets Trailing 10 years Trailing 5 quarters
Slide 11: Deposits
11 Investor Presentation | Third Quarter 2023 Deposits 11
Slide 12: Liability Mix: Strength in Funding
Liability Mix: Strength in Funding Investor Presentation | Third Quarter 202312 Total Deposits = $8.09 billion 92.6% of Funding Liabilities Liability Mix 09/30/2023 Peer group consists of 99 closest peers in terms of asset size, range $4.7-11.5 Billion; source: BankRegData.com Net Loans includes
Slide 13: Deposits: Strength in Cost of Funds
$376 $345 $328 $324 $327 $298 $349 $327 $304 $224 $346 $492 $588 $3,446 $3,580 $3,769 $3,824 $3,967 $4,090 $4,783 $4,825 $4,674 $4,603 $4,443 $4,530 $4,564 $2,518 $2,582 $2,767 $2,844 $2,943 $2,980 $3,583 $3,604 $3,678 $3,502 $3,237 $3,073 $2,858$6,341 $6,506 $6,863 $6,992 $7,237 $7,367 $8,714 $8,75
Slide 14: Deposits by Region
$186 $170 $132 $126 $287 - 100 200 300 400 500 600 700 800 $0-$100k >$100k-$250k >$250k - $500k >$500k - $1mln >$1mln $233 $207 $203 $210 $705 - 100 200 300 400 500 600 700 800 $387 $265 $178 $149 $283 - 100 200 300 400 500 600 700 800 $758 $476 $293 $201 $452 - 100 200 300 400 500 600 700 800 G re
Slide 15: Deposits: Demand & Savings Deposit Mix
Business $3,342 Consumer $3,708 Deposits: Demand & Savings Deposit Mix Investor Presentation | Third Quarter 202315 [1] Excludes time deposits, bank owned operational deposits and public funds. Balance Tier, $ millions [1]Total Demand & Savings ($ millions exterior, count interior) 486 491 454 481 1
Slide 16: Liquidity Sources
74.0 73.2 72.7 72.5 71.2 70.3 66.3 66.3 66.5 67.6 71.2 68.9 70.0 65.6 64.9 63.8 63.6 63.7 62.8 62.3 62.8 62.9 64.0 68.8 68.5 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Insured Deposits as % of Total Deposits [2][3] TCBK Peers 31.6 25.2 21.5 21.9 19.0 17.6 18.6 19.8 21.8 22.8 25
Slide 17: Loans and Credit Quality
Investor Presentation | Third Quarter 2023 Loans and Credit Quality 1717
Slide 18: Loan Portfolio and Yield
Loan Portfolio and Yield Investor Presentation | Third Quarter 202318 Q1 2021 increase includes $98MM Jumbo Mortgage pool purchase End of period balances are presented net of fees and include LHFS. Yields based on average balance and annualized quarterly interest income. Acquired VRB Loans of
Slide 19: Gross Production vs. Payoff
$178 $199 $165 $250 $464 $285 $303 $412 $396 $473 $446 $250 $159 $170 $247 -$118 -$139 -$131 -$166 -$241 -$192 -$243 -$250 -$225 -$205 -$270 -$110 -$92 -$107 -$77 $6 -$56 -$20 -$47 -$59 $6 -$33 -$47 $4 $33 $42 -$4 -$94 $36 $22 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q
Slide 20: Diversified Loan Portfolio
$2,172 $2,051 $957 $968 $959 $928 $871 $765 $600 $528 $353 $394 $321 $257 $402 $351 $66 $56 3Q-2023 3Q-2022 3Q-2023 3Q-2022 3Q-2023 3Q-2022 3Q-2023 3Q-2022 3Q-2023 3Q-2022 3Q-2023 3Q-2022 3Q-2023 3Q-2022 3Q-2023 3Q-2022 3Q-2023 3Q-2022 C R E N o n - O w n e r O cc u p ie d C R E - O w n e r O cc u p
Slide 21: Office RE Collateral
Office RE Collateral Investor Presentation | Third Quarter 202321 Graph circle size represent total loan Commitments in the Region; regional assignment based upon zip code of collateral CRE loans secured by office collateral represents 9.5% of total Loan Portfolio Commitments. California Office
Slide 22: CRE Collateral Values
68% 52% 80% 63% 89% 73% 38% 49% 30% 45% 20% 37% 11% 23% 61% 44% 2% 3% 0% 0% 0% 4% 1% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Retail Building Office Building Hotel/Motel Light Industrial Self Storage Other Multifamily CRE Owner Occupied <= 60% > 60% - 75% > 75% CRE Collateral Values Investor P
Slide 23: Unfunded Loan Commitments
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 20232022202120202019201820172016201520142013201220112010<2010 Private Balance (MM) Unfunded (MM) WA Rate $2,193 $2,074 $964 $933 $350 $391 $596 $531 $964 $977 $872 $767 $325 $261 $406 $356 $63 $55 $174 $160
Slide 24: C&I Utilization
C&I Utilization Investor Presentation | Third Quarter 202324 Excludes PPP loans; Outstanding Principal excludes unearned fees and discounts/premiums ($ millions) C&I yield is expected to grow incrementally through the remainder of 2023. Paired with treasury management services, C&I customers w
Slide 25: Loan Yield Composition
Fixed 43% Adjustable 44% Floating 13% Loan Yield Composition Investor Presentation | Third Quarter 202325 Dollars in millions, excludes PPP as well as unearned fees and accretion/amortization therein Wtd Avg Rate (weighted average rate) as of 09/30/2023 and based upon outstanding principal; Next
Slide 26: Allowance for Credit Losses
Allowance for Credit Losses Investor Presentation | Third Quarter 202326 Drivers of Change under CECL Loan portfolio growth of $188 million in Q3 Growth driven by Ag production and Construction segments, $62 and $43 million, respectively Both Quantitative and Qualitative reserve rates stabiliz
Slide 27: Allowance for Credit Losses: Allocation of Allowance by Segment
Allowance for Credit Losses Investor Presentation | Third Quarter 202327 Allocation of Allowance by Segment
Slide 28: Risk Grade Migration
Risk Grade Migration Investor Presentation | Third Quarter 202328 Zero balance in Doubtful and Loss 86.0%87.8%87.8%89.0%87.8%87.6% 11.4%8.8%9.2%8.0%9.7%9.5% 1.4%2.4%2.0%2.0%1.8%2.1% 1.4%1.0%1.0%1.1%0.8%0.8% 3Q-20232Q-20231Q-20234Q-20223Q-20222Q-2022 Pass Watch Special Mention Substandard
Slide 29: Asset Quality
395% 342% 297% 263% 293% 281% 690% 831% 586% 501% 686% 320% 401% 19 1% 17 9% 18 7% 19 4% 19 7% 21 0% 21 7% 31 0% 32 2% 30 5% 31 5% 29 8% 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 TCBK Peers Asset Quality Investor Presentation | Third Quar
Slide 30: Financials
Financials 3030 Investor Presentation | Third Quarter 2023
Slide 31: 2Q23 to 3Q23 Net Interest Income & NIM Walk
2Q23 to 3Q23 Reported Net Interest Income (NII) & NIM Walk NII $ in millions, NIM change in bps, all full taxable equivalent (FTE) NII NIM 2Q23 $89.0 3.96% Market rate changes - earning assets 3.4 17 Loan balances / mix and deferred fee earnings 1.5 8 Borrowings 0.3 2 Securities portfolio balances /
Slide 32: 3Q22 to 3Q23 Net Interest Income & NIM Walk
3Q22 to 3Q23 Reported Net Interest Income (NII) & NIM Walk NII $ in millions, NIM change in bps, all full taxable equivalent (FTE) NII NIM 3Q22 $94.5 4.02% Market rate changes - earning assets 16.5 38 Loan balances / mix and deferred fee earnings 3.6 9 Interest-bearing cash & Fed Funds (1.7) (4) Sec
Slide 33: Current Operating Metrics
0.89% 1.24% 1.43% 0.91% 1.43% 1.28% 1.24% 2017 2018 2019 2020 2021 2022 2023 1.70% 1.73% 1.94% 1.83% 1.91% 1.97% 1.93% 2017 2018 2019 2020 2021 2022 2023 65.4% 63.7% 59.7% 58.4% 53.2% 53.0% 54.8% 2017 2018 2019 2020 2021 2022 2023 4.22% 4.30% 4.47% 3.96% 3.58% 3.88% 4.01% 2017 2018 2019 2020 2021 20
Slide 34: Well Capitalized
14.1% 14.4% 15.1% 15.2% 15.4% 14.2% 14.5% 2017 2018 2019 2020 2021 2022 2023 9.3% 9.5% 10.6% 9.3% 9.2% 7.6% 7.9% 2017 2018 2019 2020 2021 2022 2023 11.7% 12.5% 13.3% 12.9% 13.2% 11.7% 12.0% 2017 2018 2019 2020 2021 2022 2023 13.2% 13.7% 14.4% 14.0% 14.2% 12.4% 12.7% 2017 2018 2019 2020 2021 2022 202
Slide 35: XYZ 202335 Pending update – no material change to format
XYZ Investor Presentation | Third Quarter 202335 Pending update – no material change to format