Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Q2 2020 Earnings Presentation
28 slides from Trico Bancshares's earnings presentation, August 2020
Slide 1: Investor Presentation Second Quarter 2020
Investor Presentation Second Quarter 2020 August 2020 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 August 2020
Slide 4: Most Recent Quarter Highlights
MOST RECENT QUARTER HIGHLIGHTS Inclusive of loan provisioning of $22.1 million, Q2 2020 return on average assets was 0.43%, as Consistent Profitability compared to Q1 2020 of 1.00% including a provision of $8.3 million. The Company’s efficiency ratio remained stable at 59.89% and 59.75% for the
Slide 5: Company Overview
COMPANY OVERVIEW 5 August 2020
Slide 6: Company Overview
COMPANY OVERVIEW Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $29.14 Market Capitalization: $867 Million Asset Size: $7.4 Billion Deposits: $6.3 Billion Loans: $4.8 Billion Bank Branches: 75 ATMs: 98 Market Area: TriCo currently serves 29 counties throughout Northern and Central Califo
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 * Impact of the Tax Cut and Jobs Act results in adjusted quarterly diluted EPS of $0.45. 8 August 2020
Slide 9: Shareholder Returns
SHAREHOLDER RETURNS Dividends per Share: 11.1% CAGR Return on Avg. Shareholder Equity 10.75% 10.49% Q1 Q2 Q3 Q4 10.04% $0.88* 9.47% $0.82 8.10% $0.66 $0.70 $0.60 $0.22 $0.52 $0.19 5.29% $0.17 $0.15 $0.22 $0.15 $0.17 $0.17 $0.15 $0.13 $0.22 $0.17 $0.19 $0.15 $0.17 $0.13 $0.15 $0.15 $0.17 $0.19 $0.22
Slide 10: Consistent Organic Growth & Disciplined Acquirer
CONSISTENT ORGANIC GROWTH & DISCIPLINED ACQUIRER Dollars in millions. Total Assets for periods ending 2005 – Q2 2020. 10 August 2020
Slide 11: Monday Morning Executive Topics
“MONDAY MORNING EXECUTIVE TOPICS” • Monitoring the Needs of Our Borrowers • Continuation & Effectiveness of Government Economic Stimulus and Economic Mitigation Efforts • Opportunities - Identification of New Markets and Customers • Leveraging Current Technologies for Greater Efficiency and Cost Red
Slide 12: Loans & Credit Quality
LOANS & CREDIT QUALITY 12 August 2020
Slide 13: Consistent Loan Growth
CONSISTENT LOAN GROWTH $5,000 $423 $4,500 6.00% $4,000 $3,500 5.52% 5.48% 5.50% 5.17% 5.46% Total Loans (Millions) 5.32% 5.33% $3,000 5.24% 5.23% 5.16% 5.00% 5.05% $2,500 $2,000 $1,500 4.00% $1,000 $500 $0 3.00% 2015 2016 2017 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Total Loans PPP Loan
Slide 14: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO CRE Non - $1,597 Owner Occupied $1,634 Commercial & $634 CRE Non Own Loans, net % of CRE Industrial # Loans $265 by Collateral ($MM) NOO Office $408 405 26% CRE - Owner $579 Retail $399 353 25% Occupied $553 Hotel/Motel $231 92 14% Warehouse $177 213 11% $577 Multifamily S
Slide 15: CRE Collateral Values
CRE COLLATERAL VALUES 35.0% Outstanding Avg Loan Size Loan Segment LTV # Loans ($MM) (000s) CRE Non-Owner Occupied $1,597 56% 1,536 $1,040 30.0% CRE Owner Occupied 579 59% 936 619 Multifamily 577 60% 500 1,154 Percent of Loan Segment by LTV Range Total $2,754 57% 2,972 $927 25.0% 20.0% 15.0% 10.0% 5
Slide 16: Unfunded Loan Commitments
UNFUNDED LOAN COMMITMENTS Total Unfunded Commitments HELOC - BY VINTAGE as of Q2 2020: $1.31 billion* 6.00% 5.51% 5.49% $200 5.10% 4.84% 4.80% 4.77% 4.66% 4.65% 4.79% $175 4.55% 4.61% 5.00% 4.16% 4.29% $99 $150 3.79% 3.62% 4.00% $125 3.00% $100 2.00% $75 $50 1.00% $25 0.00% $0 >2007 2007 2008 2009 2
Slide 17: Loan Yield Composition
Loans, Outstanding LOAN YIELD COMPOSITION Wtd Avg Rate Fixed vs. Variable ($MM) Fixed excl PPP $1,433 4.75% Variable $2,984 4.68% • Over 86% of the variable rate loans are Variable At Floor 2,582 4.60% already at floors as of Q2 2020 Variable Above Floor 324 5.20% Variable No Floor 78 4.86% • The mo
Slide 18: At-Risk Industries
AT-RISK INDUSTRIES Credit Exposure in At-Risk Industries Hotel, Recreation and Leisure Composition $244 Hotel, Recreation and Leisure 3% 2% 2% $226 3% $106 Healthcare $65 Hotels and Motels $93 Casino Hotels Retail $74 Fitness Centers $61 Restaurant, Bars and Catering Sporting Goods $56 Other $53 90%
Slide 19: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Drivers of Change Under CECL Changes in 1.66% Gross charge offs Rating migration Includes volume $491 thousand change includes and mix change econometric of Total upgrades and due to originations, factors Loans Gross recoveries draws, pay downs, downgrades. Cu
Slide 20: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Allocation of Allowance by Segment January 1, 2020 ($ Thousands) CECL Adoption March 31, 2020 June 30, 2020 % of Credit % of Credit % of Credit % of Credit Allowance for Credit Losses Amount Amount Amount excluding Outstanding Outstanding Outstanding PPP Loans Commercial
Slide 21: Asset Quality and Coverage Ratio
ASSET QUALITY Non-Performing Assets as a % of Total Assets 0.75% 0.77% 0.77% TCBK 0.73% Peers 0.70% 0.70% 0.64% 0.61% 0.57% 0.58% 0.59% 0.53% 0.53% 0.54% 0.54% NPAs have remained below peers 0.46% 0.45% 0.45% 0.47% while loss coverage has expanded, 0.32% 0.35% 0.30% 0.28% 0.30% 0.31% with CECL trans
Slide 22: Deposits
DEPOSITS 22 August 2020
Slide 23: Deposits: Strength in Funding
DEPOSITS: STRENGTH IN FUNDING Liability Mix 6/30/2020 Loans to Core Deposits (%) TCBK Peers 120 Borrowings & Subordinated 100 Debt, 1.5% Other liabilities, 80 Time 2.0% 81.6 81.6 80.7 80.6 79.1 78.9 78.1 76.9 76.8 76.4 76.3 Deposits, 75.5 74.6 60 6.2% 40 20 - 2017 2017 2017 2018 2018 2018 2018 2019
Slide 24: Deposits: Strength in Cost of Funds
DEPOSITS: STRENGTH IN COST OF FUNDS $6,248 $5,366 $5,430 $5,342 $5,295 $5,367 $5,403 $2,487 Q2 2020 includes $1,761 $1,762 $1,883 $413 million $4,009 Wtd.Avg. $1,780 $1,777 $1,833 Rate - 1.23% increase QvQ directly attributed $1,368 to PPP borrowers $3,174 $3,223 $3,121 $3,067 $3,094 $3,101 $3,363
Slide 25: Financials
F NANCIALS SAY i trico bancshares 25 August 2020
Slide 26: Consistent Operating Metrics
CONSISTENT OPERATING METRICS Net Interest Margin (FTE) Efficiency Ratio 4.47% 4.32% 4.30% 68.7% 4.23% 4.22% 4.22% 65.1% 65.4% 63.7% 59.7% 59.8% 2015 2016 2017 2018 2019 YTD 2020 2015 2016 2017 2018 2019 YTD 2020 PPNR as % of Average Assets ROAA 1.43% 1.94% 1.24% 1.79% 1.73% 1.81% 1.11% 1.70% 1.60% 1
Slide 27: Well Capitalized
WELL CAPITALIZED Tier 1 Capital Ratio CET1 Ratio 14.4% 13.3% 13.8% 13.7% 13.7% 13.9% 12.8% 13.2% 12.5% 12.2% 12.2% 11.7% 2015 2016 2017 2018 2019 2Q'20 2015 2016 2017 2018 2019 2Q'20 Total Risk Based Capital Ratio Tangible Common Equity Ratio 10.6% 15.1% 15.1% 15.1% 14.8% 14.4% 9.3% 9.5% 14.1% 9.2%
Slide 28: August 2020
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