Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Investor Presentation (January 2025)
37 slides from Trico Bancshares's investor presentation, January 2025
Slide 1: Investor Presentation Fourth Quarter 2024
Richard P. Smith, President & Chief Executive Officer Investor Presentation Daniel K. Bailey, EVP & Chief Banking Officer Fourth Quarter 2024 John S. Fleshood, EVP & Chief Operating Officer Peter G. Wiese, EVP & Chief Financial Officer Investor Presentation | Fourth 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 | Fourth Quarter 2024 5
Slide 6: Most Recent Quarter Highlights
Most Recent Quarter Highlights Pre-tax pre-provision ROAA and ROAE were 1.66% and 13.01%, respectively, for the quarter ended December Operating Leverage 31, 2024, and 1.70% and 15.32%, respectively, for the same quarter in the prior year. Our efficiency ratio was 59.6% for the quarter ended Dec
Slide 7: Company Overview
Company Overview Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $43.70 Market Cap.: $1.44 Billion Asset Size: $9.67 Billion Loans: $6.77 Billion Deposits: $8.09 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 $1.00 $32 $28 Earnings (in Millions) $0.80 $24 Qtrly EPS (diluted) $20 $0.60 $16 $0.40 $12 $8 $0.20 $4 $0 Q4'19 Q1'20 Q2'20 Q3'20
Slide 9: Shareholder Returns
Shareholder Returns Dividends per Share: 10% CAGR* Return on Avg. Shareholder Equity $1.32 12.10% 11.67% Q1 Q2 Q3 Q4 $1.20 10.75% 10.49% 10.65% $1.25 $1.10 9.57% $1.00 $0.33 $0.88 $0.30 $0.82 $0.30 $1.00 $0.25 7.18% $0.70 $0.22 $0.33 $0.75 $0.22 $0.30 $0.19 $0.25 $0.30 $0.22 $0.22 $0.33 $0.30 $0.50
Slide 10: Asset Growth
CAGR, Assets Asset Growth 5 yrs. 10 yrs. 8.4% 9.5% Organic Growth and Disciplined Acquisitions Trailing 10 years 4 Quarters of 2024 • Asset Dollars in Billions Investor Presentation | Fourth Quarter 2024 10
Slide 11: Deposits
Deposits Investor Presentation | Fourth Quarter 2024 11
Slide 12: Liability Mix: Strength in Funding
Liability Mix: Strength in Funding Liability Mix 12/31/2024 Loans to Core Deposits (%) Borrowings & Other TCBK Peers Subordinated liabilities, 120 Debt, 4.4% 2.1% 100 80 87.7 87.7 87.2 86.6 86.5 84.0 80.4 79.5 76.5 60 72.1 69.1 66.4 66.0 Time 40 Deposits, 20 13.3% 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 $8,088 8,000 $7,834 $7,367 7,000 $3,583 $3,604 $3,678 $2,600 $2,557 $2,548 $2,549 $3,502 $3,073 $2,858 $2,723 $3,237 6,000 $2,980 5,000 4,000 $4,458 $4,399 $4,416 $4,416 $4,414 3,000 $4,53
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 399 1,452 # 35,276 Consumer Business $3,290 $3,234 # 198,397 1,487 751 248 405 473 438 449 421 [1] Excludes time deposits, b
Slide 15: Deposits: CD Balance and Maturity Composition
Deposits: CD Balance and Maturity Composition CD Growth 4.50% $600 4.24% 5.00% 3.97% 4.00% $500 3.50% $1,000.00 3.33% 4.31% 4.26% 4.50% 4.15% $400 3.00% 4.05% 4.00% $672 2.50% 3.63% $300 2.23% $800.00 2.00% 3.50% 3.22% $200 1.50% 3.00% $318 1.00% 2.76% $100 $600.00 0.50% 2.50% $1,074 $44 $1,041 $40
Slide 16: Liquidity
Liquidity TCBK Pledged Securities as % of Total Securities [3] Peers 56.3 55.7 55.8 54.9 In addition to a strong deposit base, 50.4 52.9 52.5 Tri Counties Bank maintains a variety 39.6 of easily accessible funding sources. 34.9 37.1 36.3 35.7 36.5 36.3 36.6 33.6 30.7 25.3 25.3 25.3 21.8 22.8 17.6 18
Slide 17: Loans and Credit Quality
Loans and Credit Quality 17 Investor Presentation | Fourth Quarter 2024 17
Slide 18: Loan Portfolio and Yield
Loan Portfolio and Yield Total Loans Loan Yield $6,795 $6,795 $6,802 $6,743 $6,686 $6,769 $6,450 $6,000 5.82% 5.83% 6.00% 5.78% 5.72% 5.62% 5.64% 5.52% $5,000 5.44% 5.44% 5.32% 5.79% full year 2024 $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,
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- $2,323 Occupied 4Q-2024 Owner 4Q-2023 $2,218 Occupied Multifamily 4Q-2024 $1,028 4Q-2023 $950 CRE-Owner 4Q-2024 $961 4Q-2023 $956 4Q-2024 $860 SFR 1-4 Term 4Q-2023 $884 HELOC and Commercial & Farmland Construction Junior Liens & Industrial 4Q-2024 $471 Agriculture
Slide 21: Office RE Collateral
Office RE Collateral California Office Secured by Region Regions by Collateral Code Regions by Occupancy Type Graph circle size represent total loan Commitments in the Region; regional assignment based upon ZIP code of collateral Investor Presentation | Fourth Quarter 2024 21
Slide 22: CRE Collateral Values
CRE Collateral Values Distribution by LTV (1) 100% LTV Range 90% <= 60% > 60% - 75% 80% > 75% 79% 78% 76% 70% 70% 60% 60% 57% 50% 54% 50% 45% 40% 43% 40% 40% 30% 29% 20% 22% 21% 21% 10% 1% 3% 0% 0% 0% 3% 1% 7% 0% Retail Building Office Building Hotel/Motel Light Industrial Mixed Use - Retail Other M
Slide 23: Unfunded Loan Commitments
Unfunded Loan Commitments Outstanding Principal ($MM) HELOCs – by vintage, with weighted avg. coupon (8.46% total WAC) Unfunded Commitment ($MM) 9.20% 9.00% $225 9.00% 8.89% $200 8.76% 8.69% $175 8.80% 8.60% 8.52% 8.52% 8.60% 8.38% $150 8.36% 8.31% $159 8.40% 8.23% $125 8.09% 8.13% $151 8.20% 8.03%
Slide 24: C&I Utilization
C&I Utilization C&I Utilization by NAICS Industry: 4Q-2024 Utilization has remained stable Outstanding (mln) Unfunded (mln) throughout the rising rate environment 20000% $169 $158 C&I yields are generally tied to 15000% $95 $96 changes in the Prime Rate. 10000% $67 $61 $70 $57 $49 $37 $46 Pair
Slide 25: Loan Yield Composition
Floating 13% Fixed Loan Yield Composition 37% 63% Adjustable + Floating 99% of Floating Predominantly benchmarked Adjustable benchmarked to Prime to 5 Year Treasury 50% 1,000 9.00% 8.24% 900 8.15% 8.00% 7.41% 800 7.12% 7.16% 7.06% 7.12% 6.95% 7.00% 700 6.00% 5.73% 5.68% 600 5.54% 5.26% 5.00% 4.76% 5
Slide 26: Adjustable Rate Loans
Adjustable Rate Loans $391 Quarter-over-quarter change 6.58% 5.63% $199 6.22% 5.58% ($211) $3,358 $3,358 ($27) ($85) ($16) 5.21% 5.21% WAR $3,259 WAR $3,204 5.12% WAR Scaled to 4.93% $3,100MM WAR 9/30/2024 Originations Payoffs Paydowns 12/31/2024 $3,400 5.30% 5.21% 5.20% 5.12% $3,300 5.10% Year-over
Slide 27: Fixed Rate Loans
Fixed Rate Loans $2,650 5.00% $2,600 4.90% 4.82% 4.80% Year-over-year $2,550 4.80% change $2,500 4.67% 4.70% $172 $2,450 4.60% $2,400 4.50% 7.29% 6.18% Fixed Rate Loans WAR ($132) $2,700 4.62% Quarter-over-quarter WAR change Includes principal amortization as $40 well as transfers 6.80% 3.00% $2,555
Slide 28: Allowance for Credit Losses
Allowance for Credit Losses $127,000 Drivers of Change under CECL $126,000 $274 $317 $125,366 $125,000 $1,221 ($206) $124,000 $123,760 1.85% of Total Loans $123,000 Loan portfolio Gross charge-offs Net risk grade Incremental grew $84.6 million $0.722 million migration with increases in 1.85%
Slide 29: Allowance for Credit Losses
Allowance for Credit Losses Allocation of Allowance by Segment CECL Adoption ($ Thousands) January 1, 2020 September 30, 2024 December 31, 2024 Loans ACL ACL % of Loans ACL ACL % Loans ACL ACL % of Allowance for Credit Losses (Excl LHFS) Amount Loans (Excl LHFS) Amount of Loans (Excl LHFS) Amount Lo
Slide 30: Risk Grade Migration
Risk Grade Migration 100% 1.2% 1.3% 1.1% 1.6% 1.8% 1.8% 1.4% 1.5% 1.6% 1.5% 1.6% 1.6% 11.4% 12.1% 13.8% 13.3% 14.1% 14.5% 80% 60% 86.0% 85.0% 83.6% 40% 83.5% 82.6% 82.1% 20% 0% 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 Pass Watch Special Mention Substandard Zero balance in Doubtful and Loss In
Slide 31: Asset Quality
Asset Quality Non-Performing Assets as a % of Total Assets The Bank continues to actively and TCBK Peers 0.57% 0.53% 0.53% 0.55% aggressively address potential credit 0.50% 0.46% 0.48% 0.48% 0.44% issues with short resolution timelines. 0.38% 0.37% 0.39% 0.34% 0.34% 0.32% 0.35% 0.37% 0.35% 0.40% 0
Slide 32: Financials
Financials 32 Investor Presentation | Fourth Quarter 2024 32
Slide 33: Net Interest Income (NII) and Margin (NIM)
Net Interest Income (NII) and Margin (NIM) Investor Presentation | Fourth Quarter 2024 33
Slide 34: Net Interest Income (NII) and Margin (NIM)
Net Interest Income (NII) and Margin (NIM) Investor Presentation | Fourth 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% 3.71% 63.7% 59.7% 58.4% 59.1% 53.2% 53.0% 55.8% 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% 13.2% 13.7% 14.0% 14.0% 12.9% 12.5% 12.2% 12.9% 11.7% 12.4% 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 Total Risk Based Capital Tangible Capital Ratio 15.4% 15.7% 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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