Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Investor Presentation (April 2021)
29 slides from Trico Bancshares's investor presentation, April 2021
Slide 1: Investor Presentation First Quarter 2021
INVESTOR PRESENTATION First Quarter 2021 Richard P. Smith – President & Chief Executive Officer John S. Fleshood – EVP & Chief Operating Officer Peter G. Wiese – EVP & Chief Financial Officer April 2021 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 April 2021 Investor Presentation
Slide 4: Most Recent Quarter Highlights
MOST RECENT QUARTER HIGHLIGHTS Consistent Profitability • Pre-tax pre-provision return on average assets and average equity were 2.13% and 17.65%, respectively, for the quarter ended March 31, 2021, and 1.96% and 16.33%, respectively, for the trailing quarter. • Expense management strategies and dis
Slide 5: Company Overview
COMPANY OVERVIEW 5 April 2021 Investor Presentation
Slide 6: Company Overview
COMPANY OVERVIEW Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $47.37 Market Cap.: $1.4 Billion Asset Size: $8.0 Billion Loans: $5.0 Billion Deposits: $6.9 Billion Bank Branches: 73 ATMs: 97 Market Area: TriCo currently serves 29 counties throughout Northern and Central California. Thes
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 April 2021 Investor Presentation
Slide 9: Shareholder Returns
SHAREHOLDER RETURNS Dividends per Share: 11.5% CAGR* Return on Avg. Shareholder Equity $1.00 14.51% Q1 Q2 Q3 Q4 $0.88 $0.82 $0.70 10.75% 10.49% $0.66 $0.22 10.04% 9.47% $0.60 $0.22 8.10% $0.52 $0.17 $0.19 7.18% $0.15 $0.22 $0.22 $0.15 $0.17 $0.15 $0.17 $0.13 $0.22 $0.17 $0.19 $0.15 $0.17 $0.13 $0.19
Slide 10: Consistent Growth
CONSISTENT GROWTH Organic Growth and Disciplined Acquisitions CAGR 5 yrs. 10 yrs. Total Assets 12.8% 13.8% Excluding PPP 11.8% 13.3% 10 April 2021 Investor Presentation
Slide 11: Top of Mind
“TOP OF MIND” Executive Management Themes and Topics • Fiscal Policy Changes – Tax Rates, Timing and Duration of Personal Spending and Consumption, Drivers of Small Business Growth and Competitive Pressures • Leveraging Technologies for Talent and Customer Acquisition • Life beyond $10 Billion - Bui
Slide 12: Loans and Credit Quality
LOANS AND CREDIT QUALITY 12 April 2021 Investor Presentation
Slide 13: Consistent Loan Growth
CONSISTENT LOAN GROWTH $5,000 $361 $423 $426 $327 $4,500 6.00% $4,000 $3,500 5.48% 5.50% 5.46% Total Loans (Millions) 5.33% 5.09% 5.15% $3,000 5.24% 5.23% 5.16% 5.00% 5.05% $2,500 4.78% $2,000 $1,500 4.00% $1,000 $500 $0 3.00% 2017 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Slide 14: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO CRE Non-Owner $1,555 Occupied $1,634 CRE-Owner $641 Occupied $553 CRE Non Ow n Loans, net % of CRE # Loans By Collateral ($MM) NOO $765 Retail $417 342 27% Multifamily Off ice $388 385 25% $559 Hotel/Motel $223 83 14% Warehouse $147 183 9% $641 Self Storage $82 40 5% SFR 1
Slide 15: CRE Collateral Values
CRE COLLATERAL VALUES LTV Range 79% <= 60% > 60% - 75% > 75% 70% 65% 63% 59% 58% 53% 46% 46% 41% 40% 38% 35% 34% 26% 21% 2% 3% 3% 8% 0% 5% 2% 1% Hotel/Motel Office Building Retail Building Warehouse Self Storage Other Multifamily CRE Owner Occupied 15 April 2021 Investor Presentation
Slide 16: Unfunded Loan Commitments
UNFUNDED LOAN COMMITMENTS HELOCs – by vintage, with weighted avg. coupon Outstanding Principal ($MM) Unfunded Commitment ($MM) $82 $113 $1,653 $35 $1,575 $384 $36 $1 $550 $31 $20 $511 $235 $769 $644 $643 $226 $204 $557 $563 $563 $516 $63 $57 $328 $365 $262 $225 $244 $11 $66 $188 $168 $70 $80 1Q-2021
Slide 17: C&I Utilization
C&I UTILIZATION $700 60% 54.5% 53.3% 52.7% 52.4% $600 49.3% 50% 44.0% 42.9% $500 40% 34.5% 32.7% Millions of $ $400 $254 $235 $372 $219 $207 $221 $384 30% $265 $273 $300 20% $200 $249 $248 $247 $262 $243 10% $100 $208 $205 $197 $187 $0 0% 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-20
Slide 18: Loan Yield Composition
LOAN YIELD COMPOSITION • Variable rate loans at their floor have remained steady at 88% of variable loans from Q4-2020 to Q1-2021. • The most prominent index for the variable portfolio is 5 Year Treasury CMT Fixed vs. Variable, Total Loans (ex-PPP) Variable Variable Above At Floor Floor 58% 6% Varia
Slide 19: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Drivers of Change under CECL Gross charge offs Change in reserve Includes volume Changes in $226 thousand for all collectively and mix change econometric and individually due to originations, factors reflect Gross recoveries analyzed loans draws, pay downs, impr
Slide 20: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Allocation of Allowance by Segment ($ Thousands) March 31, 2020 December 31, 2020 March 31, 2021 % of Credit % of Credit % of Credit % of Credit Allowance for Credit Losses Amount Amount Amount excluding Outstanding Outstanding Outstanding PPP Loans Commercial real estate
Slide 21: Risk Grade Migration
RISK GRADE MIGRATION 0.8% 0.8% 0.9% 1.0% 1.0% 1.2% 1.0% 1.4% 1.3% 3.0% 3.3% 2.9% 5.0% 4.8% 14.0% 11.4% 13.8% 13.6% % of Loan Portfolio Outstanding, by Risk Grade 93.2% 92.9% 83.9% 82.2% 82.1% 84.6% 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 Zero balance in Doubtful and Loss Pass Watch Special
Slide 22: Asset Quality
ASSET QUALITY NPAs have remained below Non-Performing Assets as a % of Total Assets TCBK Peers 0.77% 0.77% peers while loss coverage 0.73% 0.75% 0.64% has expanded, with CECL 0.58% 0.59% 0.61% 0.54% 0.53% 0.58% 0.53% 0.54% transition and allowance 0.45% 0.45% 0.47% 0.39% 0.39% build up resulting in
Slide 23: Deposits
DEPOSITS 23 April 2021 Investor Presentation
Slide 24: Deposits: Strength in Funding
DEPOSITS: STRENGTH IN FUNDING Liability Mix 3/31/2021 Loans to Core Deposits TCBK Peers Borrowings & 120 Subordinated Other Time Debt, 1.3% liabilities, 100 Deposits, 1.9% 80 4.6% 81.6 81.6 80.7 80.6 79.1 78.1 76.9 76.8 76.3 75.9 75.5 60 72.7 71.8 40 20 0 2018 2018 2018 2018 2019 2019 2019 2019 2020
Slide 25: Deposits: Strength in Cost of Funds
DEPOSITS: STRENGTH IN COST OF FUNDS $6,506 $6,863 $6,248 $6,341 $5,366 $5,430 $5,342 $5,295 $5,367 $5,403 As of Q1-2021, $2,767 $544 million in $2,518 $2,582 $2,487 deposits directly $1,761 $1,762 $1,780 $1,777 $1,833 $1,883 related to phase 1 & 2 PPP combined Q2-2020 increase includes $413 $3,7
Slide 26: Financials
FINANCIALS 26 April 2021 Investor Presentation
Slide 27: 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% 3.74% 59.7% 58.4% 50.4% 2015 2016 2017 2018 2019 2020 Q1 2021 2015 2016 2017 2018 2019 2020 Q1 2021 PPNR as % of Average Assets ROAA 2.13% 1.75% 1.94% 1.79% 1.73% 1.83%
Slide 28: Well Capitalized
WELL CAPITALIZED Tier 1 Capital Ratio CET1 Ratio 14.4% 14.0% 13.3% 13.8% 13.7% 13.7% 13.9% 12.9% 12.9% 13.2% 12.5% 12.2% 12.2% 11.7% 2015 2016 2017 2018 2019 2020 Q1 2021 2015 2016 2017 2018 2019 2020 Q1 2021 Total Risk Based Capital Tangible Common Equity Ratio 10.6% 15.1% 15.1% 15.2% 15.1% 14.8% 1
Slide 29: April Investor Presentation August
29 April 2021 August Investor Presentation 2020
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