Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Investor Presentation (October 2023)
35 slides from Trico Bancshares's investor presentation, October 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
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
Tri Counties Bank 3 Investor Presentation | Third Quarter 2023
Slide 4: Agenda and Executive Team
Agenda Executive Team (left to right) • Most Recent Quarter Recap • Judi Giem, SVP & Chief Human Resources Officer • Company Overview • Peter Wiese, EVP & Chief Financial Officer • Lending Overview • Dan Bailey, EVP & Chief Banking Officer • Deposit Overview • Rick Smith, President & Chief Executive
Slide 5: Most Recent Quarter Highlights
Most Recent Quarter Highlights Operating Leverage • Pre-tax pre-provision ROAA and ROAE were 1.86% and 16.49%, respectively, for the quarter ended and Profitability September 30, 2023, and 2.16% and 20.41%, respectively, for the same quarter in the prior year • Our efficiency ratio was 55.6% for the
Slide 6: Company Overview
Company Overview 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 Market Area: TriCo currently serves 31 countie
Slide 7: Recurring Critical and Strategic Themes Noted in Recent Executive Discussions
“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 Sha
Slide 8: Positive Earnings Track Record
Positive Earnings Track Record July 2018 2020 March 2022 Acquired FNB Bancorp Elevated ACL Provisioning Acquired Valley Republic Bancorp $40 ($1.2B assets) Associated with COVID ($1.4B assets) $1.20 Related Risks $36 $32 $28 Earnings (in Millions) $0.80 $24 Qtrly EPS (diluted) $20 $16 $0.40 $12 $8 $
Slide 9: Shareholder Returns
Shareholder Returns Dividends per Share: 11.4% CAGR* Return on Avg. Shareholder Equity $1.20 12.10% 11.67% Q1 Q2 Q3 Q4 $1.10 $1.25 10.75% 10.49% 11.06% $1.00 $1.00 $0.88 $0.30 $0.82 8.10% $0.25 $0.66 $0.70 $0.22 7.18% $0.75 $0.22 $0.30 $0.19 $0.25 $0.30 $0.17 $0.22 $0.50 $0.22 $0.30 $0.17 $0.17 $0.2
Slide 10: Consistent Growth
CAGR, Assets 5 yrs. 10 yrs. Consistent Growth 9.4% 14.2% Organic Growth and Disciplined Acquisitions Asset Dollars in Billions. Trailing 10 years Trailing 5 quarters 10 Investor Presentation | Third Quarter 2023
Slide 11: Deposits
Deposits 11 11 Investor Presentation | Third Quarter 2023
Slide 12: Liability Mix: Strength in Funding
Liability Mix: Strength in Funding Liability Mix 09/30/2023 Loans to Core Deposits (%) Other TCBK Peers Borrowings & 120 liabilities, Subordinated 2.0% Debt, 7.2% 100 Time 80 Deposits, 84.0 80.4 79.5 6.7% 76.5 75.9 60 72.6 72.1 71.8 70.1 69.1 66.9 66.4 66.0 40 Non Interest- 20 bearing Demand 0 Depos
Slide 13: Deposits: Strength in Cost of Funds
Deposits: Strength in Cost of Funds Relationship focused pricing for retention 9,000 $8,714 $8,757 $8,656 and acquisition $8,329 $8,095 $8,026 $8,010 Continued best in class total deposit Beta, 8,000 $7,237 $7,367 15.6% cycle to date $6,863 $6,992 7,000 $3,583 $3,604 $6,506 $3,678 $6,341 $3,502
Slide 14: Deposits by Region
800 700 $1.149 billion, total Prior Quarter Deposits by Region 600 500 $544 400 Northern 300 200 $271 100 $141 - $99 $94 800 700 $758 $2.180 billion, total 600 500 Greater Chico 400 $476 $452 300 200 $293 100 $201 - 800 700 Sacramento Valley 600 $1.262 billion, total 500 400 300 $387 200 $265 $283 1
Slide 15: Deposits: Demand & Savings Deposit Mix
Deposits: Demand & Savings Deposit Mix Total Demand & Savings Balance Tier, $ millions [1] Consumer ($ millions exterior, count interior) Business Prior Quarter, Total 391 # 34,960 1,430 Business Consumer $3,342 $3,708 # 203,295 1,622 897 493 305 486 491 454 481 [1] Excludes time deposits, bank owne
Slide 16: Liquidity
TCBK Liquidity Pledged Securities as % of Total Securities [3] Peers 55.9 50.4 43.4 In addition to a strong 40.1 39.6 37.5 37.2 35.7 37.1 36.3 35.7 34.2 deposit base, the bank maintains a variety of 31.6 easily accessible funding 25.2 25.3 25.3 26.5 sources 21.5 21.9 22.8 19.0 17.6 18.6 19.8 21.8
Slide 17: Loans and Credit Quality
Loans and Credit Quality 17 17 Investor Presentation | Third Quarter 2023
Slide 18: Loan Portfolio and Yield
Loan Portfolio and Yield 6.50% $6,709 $6,452 $6,521 $6,422 $6,313 $6,097 $6,000 $5,796 $5,000 $4,859 5.44% $4,711 $4,739 5.50% $4,610 $4,407 $4,443 5.52% 5.24% $4,381 $4,386 $4,000 $4,111 5.15% 5.38% $4,022 5.09% 5.23% 5.21% 4.92% 4.96% 5.10% 5.05% $3,000 4.86% 4.88% 4.78% 4.69% 4.73% 4.50% $2,000 $
Slide 19: Gross Production vs. Payoff
Gross Production vs. Payoff In addition to the nearly $0.8 Originations and net loan billion in non-PPP loan TCBK originated nearly $1.5 growth in 2022 were supportive originations in 2020, TCBK billion in 2021, while facing of the positive mix shift in originated over $0.4 billion in headwinds of a
Slide 20: Diversified Loan Portfolio
Diversified Loan Portfolio CRE Non- Multifamily Occupied Occupied 3Q-2023 $2,172 Owner 3Q-2022 $2,051 3Q-2023 $957 Owner CRE- 3Q-2022 $968 3Q-2023 $959 3Q-2022 $928 3Q-2023 $871 SFR 1-4 Term 3Q-2022 $765 Agriculture & Auto & Other HELOC Commercia Farmland 1% Industrial 3Q-2023 $600 6% Construction l
Slide 21: Office RE Collateral
Office RE Collateral TCBK Community Net Book Balance Wtd Avg Loan Count Commitments Net Book Balance CRE loans secured Banking Regions (Avg) LTV Central Valley 299 $ 318,252,747 $ 289,435,595 $ 968,012 60.4% by office collateral Bay Area 123 179,079,604 167,252,047 1,359,773 50.8% represents 9.5%
Slide 22: CRE Collateral Values
CRE Collateral Values Distribution by LTV (1) 100% LTV Range 90% <= 60% 89% > 60% - 75% 80% > 75% 80% 70% 73% 68% 60% 63% 61% 50% 52% 49% 45% 40% 44% 37% 38% 30% 30% 20% 23% 20% 10% 11% 7% 2% 3% 0% 0% 0% 4% 1% 0% Retail Building Office Building Hotel/Motel Light Industrial Self Storage Other Multifa
Slide 23: Unfunded Loan Commitments
Unfunded Loan Commitments HELOCs – by vintage, with weighted avg. coupon (8.35% total WAC) Outstanding Principal ($MM) 12.00% $250 9.44% 9.71% $225 Unfunded Commitment ($MM) 9.08% 8.68% 8.96% 9.08% 9.22% 8.83% 10.00% 8.75% 8.60% 8.55% 8.70% $200 8.20% 7.60% 7.56% $175 $174 8.00% $150 $160 6.00% $125
Slide 24: C&I Utilization
C&I Utilization C&I Utilization by NAICS Industry: 3Q-2023 C&I yield is expected to grow $210$205 incrementally through the 20000% Outstanding (mln) Unfunded (mln) $171 remainder of 2023. 15000% $90 Paired with treasury 10000% $78 $66 $65 $49 management services, C&I 5000% $43 $32 $44 $31 $24 $4
Slide 25: Loan Yield Composition
Floating 13% Loan Yield Composition Fixed 43% 57% Adjustable + Floating 99% of Floating Predominantly benchmarked benchmarked to Prime to 5 Year Treasury Adjustable 44% 1,000 10.00% 9.18% 900 9.16% 9.00% 800 8.00% 7.91% 7.67% 7.61% 7.46% 7.49% 7.50% 700 7.00% 6.32% 600 6.00% 5.30% 500 5.00% 4.53% 4.
Slide 26: Allowance for Credit Losses Drivers of Change under CECL
Allowance for Credit Losses Drivers of Change under CECL 1.80% of Total Loan portfolio Gross charge-offs Directionally Both Quantitative Loans growth of $188 $5.357 million consistent with and Qualitative 1.73% million in Q3 decrease in reserve rates Gross recoveries of Total Criticized lo
Slide 27: Allowance for Credit Losses Allocation of Allowance by Segment
Allowance for Credit Losses Allocation of Allowance by Segment 27 Investor Presentation | Third Quarter 2023
Slide 28: Risk Grade Migration
Risk Grade Migration 0.8% 0.8% 1.1% 1.0% 1.0% 1.2% 2.1% 1.8% 2.0% 2.0% 2.4% 1.4% 9.5% 9.7% 8.0% 9.2% 8.8% 11.4% 87.6% 87.8% 89.0% 87.8% 87.8% 86.0% 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 Pass Watch Special Mention Substandard Zero balance in Doubtful and Loss 28 Investor Presentation | Th
Slide 29: Asset Quality
Asset Quality The Bank continues to actively and Non-Performing Assets as a % of Total Assets TCBK Peers aggressively address potential 0.75% 0.68% 0.64% credit issues with short resolution 0.58% 0.60% timelines. 0.50% 0.46% 0.37% 0.39% 0.34% 0.34% 0.32% 0.42% Over the past three years both the
Slide 30: Financials
Financials 30 30 Investor Presentation | Third Quarter 2023
Slide 31: Net Interest Income (NII) and Margin (NIM)
Net Interest Income (NII) and Margin (NIM) 2Q23 to 3Q23 Reported Net Interest Income (NII) & NIM Walk 140. 0 7.00% NII $ in millions, NIM change in bps, all full taxable equivalent (FTE) Int Income (FTE) Net Int Income (FTE) NIM (FTE) NII NIM 2Q23 $89.0 3.96% 120. 0 $112.8 6.00% $107.5 Market rate c
Slide 32: Net Interest Income (NII) and Margin (NIM)
Net Interest Income (NII) and Margin (NIM) 3Q22 to 3Q23 Reported Net Interest Income (NII) & NIM Walk 140. 0 7.00% NII $ in millions, NIM change in bps, all full taxable equivalent (FTE) Int Income (FTE) Net Int Income (FTE) NIM (FTE) NII NIM 3Q22 $94.5 4.02% 120. 0 $112.8 6.00% $107.5 Market rate c
Slide 33: Current Operating Metrics
Current Operating Metrics Net Interest Margin (FTE) Efficiency Ratio 4.30% 4.47% 4.22% 3.96% 3.88% 4.01% 3.58% 65.4% 63.7% 59.7% 58.4% 53.2% 53.0% 54.8% 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 PPNR as % of Average Assets ROAA 1.43% 1.43% 1.94% 1.91% 1.97% 1.93% 1.24% 1.
Slide 34: Well Capitalized
Well Capitalized Tier 1 Capital Ratio CET1 Ratio 14.4% 14.2% 13.3% 14.0% 13.2% 13.7% 12.9% 13.2% 12.5% 12.7% 12.0% 12.4% 11.7% 11.7% 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 Total Risk Based Capital Tangible Capital Ratio 15.4% 10.6% 15.1% 15.2% 14.4% 14.5% 9.3% 9.5% 9.3
Slide 35: XYZ
Pending update – no material change to format XYZ 35 Investor Presentation | Third Quarter 2023
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