Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Investor Presentation (January 2022)
32 slides from Trico Bancshares's investor presentation, January 2022
Slide 1: Investor Presentation Fourth Quarter 2021
INVESTOR PRESENTATION Fourth Quarter 2021 Richard P. Smith – President & Chief Executive Officer John S. Fleshood – EVP & Chief Operating Officer Peter G. Wiese – EVP & Chief Financial Officer January 2022 Investor Presentation
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 January 2022 Investor Presentation
Slide 4: Most Recent Quarter Highlights
MOST RECENT QUARTER HIGHLIGHTS Consistent Profitability • Pre-tax pre-provision ROAA and ROAE were 1.84% and 15.72%, respectively, for the quarter ended December 31, 2021, and 1.96% and 16.33%, respectively, for the same quarter in the prior year. • Total revenue and EPS growth totaled 4.0% and 19.0
Slide 5: Company Overview
COMPANY OVERVIEW 5 January 2022 Investor Presentation
Slide 6: Company Overview
COMPANY OVERVIEW Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $42.96 Market Cap.: $1.3 Billion Asset Size: $8.6 Billion Loans: $4.9 Billion Deposits: $7.4 Billion Bank Branches: 68 ATMs: 86 Bank ATMs, with access to over 37,000 network ATMs Market Area: TriCo currently serves 31 counti
Slide 7: 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 8: 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 $0.00 Net Income ($MM) $13.9 $15.0 $16.2 $23.2 $22.7 $23.1 $23.4 $22.9 $16.
Slide 9: Shareholder Returns
SHAREHOLDER RETURNS Dividends per Share: 11.5% CAGR* Return on Avg. Shareholder Equity $1.00 12.10% Q1 Q2 Q3 Q4 $0.88 $0.82 10.75% 10.49% $0.25 10.04% $0.70 9.47% $0.66 $0.22 $0.60 $0.22 8.10% $0.52 $0.25 7.18% $0.17 $0.19 $0.15 $0.22 $0.22 $0.15 $0.17 $0.17 $0.15 $0.25 $0.13 $0.22 $0.17 $0.19 $0.15
Slide 10: Consistent Growth
CONSISTENT GROWTH Organic Growth and Disciplined Acquisitions CAGR 5 yrs. 10 yrs. Total Assets 13.8% 12.9% Excluding PPP 13.6% 12.8% 10 January 2022 Investor Presentation
Slide 11: "Top of Mind"
“TOP OF MIND” Executive Management Themes and Topics • Successfully Integrate And Leverage Synergies From The Merger With Valley Republic Bank • Driving Loan and Non-Interest Income Growth / Diversification Through Organic And Acquisition Based Strategies • Challenges To Growth Plans May Be Caused b
Slide 12: Loans and Credit Quality
LOANS AND CREDIT QUALITY 12 January 2022 Investor Presentation
Slide 13: Consistent Loan Growth
CONSISTENT LOAN GROWTH 6.50% $361 $240 $151 $61 $423 $426 $327 $4,739 $4,859 $4,711 $4,610 $4,386 $4,407 $4,443 $4,381 $4,305 $4,182 $4,104 $4,022 $4,038 5.48% 5.50% 5.50% 5.24% 5.46% $3,015 5.33% 5.0… 5.15% 5.23% 5.16% 4.92% 4.96% 5.05% 4.86% 4.78% 4.50% 3.50% 2017 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2
Slide 14: Gross Production vs Payoff
GROSS PRODUCTION VS PAYOFF TCBK originated over $0.9 billion in loans In addition to the nearly $0.8 billion in TCBK originated nearly $1.5 billion in 2021, in 2019, while facing headwinds of non-PPP loan originations in 2020, TCBK compared to nearly $0.8 billion in 2020, outpacing payoffs in excess
Slide 15: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO CRE Non-Owner $1,603 Occupied $1,536 CRE-Owner $706 Occupied $624 $823 Multifamily $639 $670 SFR 1-4 Term $553 Commercial & $259 Agriculture & Farmland Auto & Other Industrial $526 Construction 1% 4% 5% SFR HELOC SFR HELOC and $338 and Junior Junior Liens Liens CRE Non- $3
Slide 16: CRE Collateral Values
CRE COLLATERAL VALUES DISTRIBUTION BY LTV 90% LTV Range 80% <= 60% > 60% - 75% 74% 70% 70% > 75% 60% 62% 61% 60% 58% 55% 50% 46% 47% 40% 40% 40% 37% 38% 38% 30% 26% 20% 22% 10% 4% 5% 2% 2% 0% 4% 2% 7% 0% Hotel/Motel Office Building Retail Building Warehouse Light Industrial Other Multifamily CRE Own
Slide 17: Unfunded Loan Commitments
UNFUNDED LOAN COMMITMENTS HELOCs – by vintage, with weighted avg. coupon 6.00% 5.51% $175 Outstanding Principal ($MM) 4.63% 4.46% 4.69% 4.72% 5.00% 4.34% 4.29% 4.43% 4.48% 4.51% 4.42% $150 4.11% Unfunded Commitment ($MM) 3.62% 3.55% $125 4.00% 3.31% $170 $100 3.00% $88 $75 2.00% $50 1.00% $25 0.00%
Slide 18: C&I Utilization
C&I UTILIZATION $700 60% $600 54.5% 52.4% 52.7% 50% 49.3% $500 44.0% 42.9% 40% $400 Millions of $ 36.4% 36.0% 34.5% 34.5% 32.7% 30% $300 $235 $207 $221 $254 $262 20% $248 $243 $247 $265 $273 $360 $372 $384 $353 $339 $200 $208 $205 $206 $197 $187 $191 $186 10% $100 $0 0% 2Q-2019 3Q-2019 4Q-2019 1Q-20
Slide 19: Loan Yield Composition
LOAN YIELD COMPOSITION • Variable rate loans at their floor as a percentage of total variable loans has remained stable at 88% in Q4-2021. • The most prominent index for the variable portfolio is 5 Year Treasury CMT. Fixed vs. Variable, Total Loans (ex-PPP) Variable At Variable Floor Above 54% Floor
Slide 20: Loan Yield Composition
LOAN YIELD COMPOSITION Loans at Floor by Year of Next Reprice 5.50% Balance WA Rate No Floor WA Rate at Floor 4.87% 5.00% 4.83% 4.59% 4.54% 4.50% 4.29% 4.23% 4.21% 3.94% 4.00% 4.07% 4.02% 4.03% 3.95% 3.98% 3.92% $465 $251 $183 $278 $354 $574 $539 3.50% Monthly < 1 Year 1 - 2 Years 2 - 3 Years 3 - 4
Slide 21: Loan Yield Composition
LOAN YIELD COMPOSITION Loans at Floor by Year of Next Reprice – Commercial Real Estate & Multifamily 5.50% Balance WA Rate No Floor WA Rate At Floor 4.90% 5.00% 4.77% 4.58% 4.48% 4.50% 4.26% 4.26% 4.10% 4.13% 4.23% 4.10% 4.00% 4.09% 4.04% 4.00% 3.97% $98 $197 $160 $220 $288 $480 $416 3.50% Monthly <
Slide 22: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Drivers of Change under CECL Gross charge offs Change in reserve Includes volume Lagging recovery 1.72% 1.74% $0.197 million for all collectively and mix change of California of Total and individually due to originations, Unemployment of Total Gross recoveries a
Slide 23: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Allocation of Allowance by Segment 23 January 2022 Investor Presentation
Slide 24: Risk Grade Migration
RISK GRADE MIGRATION 1.0% 1.0% 1.2% 1.2% 1.0% 1.1% 3.0% 3.3% 2.9% 2.6% 2.5% 1.6% 7.8% 11.2% 9.3% 13.8% 11.4% 13.6% % of Loan Portfolio Outstanding, by Risk Grade 87.2% 89.6% 84.6% 85.0% 82.2% 82.1% 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 Zero balance in Doubtful and Loss Pass Watch Special
Slide 25: Asset Quality
ASSET QUALITY Non-Performing Assets as a % of Total Assets NPAs have remained below peers while loss coverage has expanded, TCBK Peers 0.75% 0.73% first with the adoption of CECL, then 0.73% 0.68% 0.64% 0.64% 0.61% through the on-going concerns of the 0.58% 0.59% 0.54% 0.53% 0.58% pandemic; resultin
Slide 26: Deposits
DEPOSITS 26 January 2022 Investor Presentation
Slide 27: Deposits: Strength in Funding
DEPOSITS: STRENGTH IN FUNDING Liability Mix 12/31/2021 Loans to Core Deposits (%) TCBK Peers Borrowings & 120 Time Subordinated Other Debt, 1.4% Liabilities, 100 Deposits, 3.9% 1.8% 80 81.6 81.6 80.7 80.6 78.1 76.9 76.3 75.9 75.5 60 72.7 71.8 70.2 66.9 66.0 40 20 0 2018 2018 2019 2019 2019 2019 2020
Slide 28: Deposits: Strength in Cost of Funds
DEPOSITS: STRENGTH IN COST OF FUNDS 8,000 $7,367 $7,237 $6,863 $6,992 7,000 Continued growth $6,341 $6,506 $6,248 in the volume of noninterest- 6,000 $2,943 $2,980 $5,430 $5,342 $5,367 $5,403 bearing deposits $5,295 $2,767 $2,844 $2,582 both in terms of 5,000 $2,487 $2,518 dollars and as a $1,762
Slide 29: Financials
FINANCIALS 29 January 2022 Investor Presentation
Slide 30: Consistent Operating Metrics
CONSISTENT OPERATING METRICS Net Interest Margin (FTE) Efficiency Ratio 4.47% 4.32% 4.30% 68.7% 4.23% 4.22% 65.1% 65.4% 3.96% 63.7% 59.7% 58.4% 3.58% 53.2% 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 PPNR as % of Average Assets ROAA 1.43% 1.43% 1.94% 1.91% 1.24% 1.79% 1.73%
Slide 31: Well Capitalized
WELL CAPITALIZED Tier 1 Capital Ratio CET1 Ratio 14.4% 14.2% 13.3% 14.0% 13.2% 13.8% 13.7% 13.7% 12.9% 13.2% 12.5% 12.2% 12.2% 11.7% 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 Total Risk Based Capital Tangible Common Equity Ratio 15.4% 10.6% 15.1% 15.1% 15.2% 14.8% 14.4% 9
Slide 32: January 2022 Investor Presentation
32 January August 2022 2020 Investor Presentation
TriCo Bancshares — Investor Presentation (January 2022) on 6ix