Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Investor Presentation (October 2020)
29 slides from Trico Bancshares's investor presentation, October 2020
Slide 1: Investor Presentation Third Quarter 2020
Investor Presentation Third Quarter 2020 October 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 October 2020
Slide 4: Most Recent Quarter Highlights
MOST RECENT QUARTER HIGHLIGHTS Pre-tax pre-provision return on average assets and average equity was 1.72% and 14.11%, Consistent Profitability respectively and 1.78% and 13.84%, respectively for the three- and nine-month respective periods ended September 30, 2020. Focus on expense management s
Slide 5: Company Overview
COMPANY OVERVIEW 5 October 2020
Slide 6: Company Overview
COMPANY OVERVIEW Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $24.49 Market Capitalization: $729 Million Asset Size: $7.4 Billion Deposits: $6.3 Billion Loans: $4.8 Billion Bank Branches: 75 ATMs: 97 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 October 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 6.13% $0.17 $0.19 $0.15 $0.22 $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
Slide 10: Consistent Organic Growth & Disciplined Acquirer
CONSISTENT ORGANIC GROWTH & DISCIPLINED ACQUIRER Dollars in millions. Total Assets for periods ending 2005 – Q3 2020. 10 October 2020
Slide 11: Monday Morning Executive Topics
“MONDAY MORNING EXECUTIVE TOPICS” • Fiscal Policy Changes and the Effectiveness of Economic Stimulus Measures…if any • Opportunities - Identification of New Markets, Along with Talent and Customer Acquisition Strategy Execution • Digital Banking - Service and the Customer Experience with Fewer Branc
Slide 12: Loans & Credit Quality
LOANS & CREDIT QUALITY 12 October 2020
Slide 13: Consistent Loan Growth
CONSISTENT LOAN GROWTH $5,000 $423 $423 $4,500 6.00% $4,000 $3,500 5.48% 5.50% 5.46% 5.17% Total Loans (Millions) 5.32% 5.33% $3,000 5.24% 5.23% 5.02% 5.16% 5.00% 5.05% $2,500 4.78% $2,000 $1,500 4.00% $1,000 $500 $0 3.00% 2016 2017 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Total
Slide 14: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO CRE Non - $1,600 Owner Occupied $1,610 Commercial & $634 CRE Non Own Loans, net % of CRE # Loans Industrial $250 by Collateral ($MM) NOO Retail $408 348 26% CRE - Owner $581 Office $406 399 25% Occupied $546 Hotel/Motel $227 88 14% Warehouse $174 210 11% $602 Self Storage
Slide 15: CRE Collateral Values
Outstanding # Avg Loan Size CRE COLLATERAL VALUES Loan Segment LTV ($MM) Loans (000s) CRE Non Owner Occupied $1,600 57% 1,525 $1,049 Retail Building $408 55% 348 $1,174 90% Office Building $406 59% 399 $1,017 Hotel/Motel $227 49% 88 $2,576 <= 60% Warehouse $174 58% 210 $829 80% > 60% - 75% Self Stor
Slide 16: Unfunded Loan Commitments
UNFUNDED LOAN COMMITMENTS HELOC - BY VINTAGE Total Unfunded 6.00% 5.53% 5.59% $200 4.99% $104 Commitments as of Q3 4.65% 4.81% 4.78% 4.74% 4.66% 4.66% 4.83% 4.56% $175 5.00% 4.26% 4.26% $85 2020: $1.27 billion* 3.82% 3.69% $150 4.00% $125 3.00% $100 2.00% $75 $50 1.00% $25 0.00% $0 >2007 2007 2008 2
Slide 17: C&I Utilization
C&I UTILIZATION C&I balance and utilization peaked in the months leading up to the pandemic taking hold in the US and prior to the CARES Act and launch of the PPP loan program. $600 60% 52.4% 52.5% 52.2% 52.7% 50.9% 50.5% 49.3% 49.4% $500 48.4% 50% 44.0% 44.1% 43.3% 42.9% $400 40% Millions of $ $300
Slide 18: Loan Yield Composition
LOAN YIELD COMPOSITION Loans, Fixed vs. Variable Outstanding ($MM) Wtd Avg Rate Fixed excl PPP $1,440 4.72% • Nearly 88% of the variable rate loans are Variable $2,991 4.64% already at floors as of Q3 2020 Variable At Floor 2,622 4.58% Variable Above Floor 293 5.14% • The most prominent index for th
Slide 19: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Drivers of Change Under CECL Gross charge offs Rating migration Includes volume Changes in $194 thousand change includes and mix change econometric upgrades and due to originations, factors Gross recoveries downgrades. draws, pay downs, 1.81% $380 thousand Cal
Slide 20: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Allocation of Allowance by Segment January 1, 2020 ($ Thousands) CECL Adoption June 30, 2020 September 30, 2020 % of Credit % of Credit % of Credit % of Credit Allowance for Credit Losses Amount Amount Amount excluding Outstanding Outstanding Outstanding PPP Loans Commerc
Slide 21: Risk Grade Migration
RISK GRADE MIGRATION 0.8% 0.9% 0.9% 1.0% Special Mention (NBV) 1.0% 1.4% 1.3% 3.1% 5.0% 4.8% Q4-2019 Q3-2020 Diff Pool % (mln) # Loans % (mln) # Loans (mln) # Loans 13.9% 13.7% CRE Ow ner Occupied 0.8% $4.6 16 2.3% $13.3 18 $8.7 2 CRE NOO 0.8% $12.2 12 4.1% $65.3 33 $53.1 21 Multifamily 0.5% $2.6 2
Slide 22: Asset Quality Coverage Ratio
ASSET QUALITY Non-Performing Assets as a % of Total Assets 0.77% 0.77% TCBK 0.73% Peers 0.70% 0.70% 0.64% 0.61% 0.58% 0.59% 0.57% 0.54% 0.53% 0.53% 0.54% 0.53% NPAs have remained below peers 0.45% 0.45% 0.47% while loss coverage has expanded, 0.35% 0.32% 0.33% with CECL transition and allowance 0.30
Slide 23: Deposits
DEPOSITS 23 October 2020
Slide 24: Deposits: Strength in Funding
DEPOSITS: STRENGTH IN FUNDING Liability Mix 9/30/2020 Net Loans to Core Deposits * Borrowings & TCBK Peers 120 Subordinated Other Time Debt, 1.5% liabilities, 100 Deposits, 2.0% 80 6.2% 81.6 81.6 80.7 80.6 79.1 78.1 76.9 76.9 76.8 76.4 76.3 75.9 75.5 60 40 20 - 2017 2017 2018 2018 2018 2018 2019 201
Slide 25: Deposits: Strength in Cost of Funds
DEPOSITS: STRENGTH IN COST OF FUNDS $6,248 $6,341 $5,366 $5,430 $5,342 $5,295 $5,367 $5,403 Q2 2020 includes $2,487 $2,518 $413 million $1,761 Wtd.Avg. $1,762 $1,780 $1,833 $1,883 Rate - 1.23% $1,777 increase QvQ $4,009 directly attributed $1,368 to PPP borrowers $3,363 $3,446 2018 includes $3,1
Slide 26: Financials
F NANCIALS SAY i trico bancshares 26 October 2020
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% 4.04% 63.7% 59.7% 59.6% 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% 1.70% 1.73% 1.78% 1.11% 1.60% 1
Slide 28: Well Capitalized
WELL CAPITALIZED Tier 1 Capital Ratio CET1 Ratio 14.4% 14.0% 13.3% 13.8% 13.7% 13.7% 12.9% 13.2% 12.5% 12.2% 12.2% 11.7% 2015 2016 2017 2018 2019 3Q'20 2015 2016 2017 2018 2019 3Q'20 Total Risk Based Capital Ratio Tangible Common Equity Ratio 10.6% 15.1% 15.1% 15.2% 14.8% 14.4% 9.3% 9.5% 14.1% 9.2%
Slide 29: October August
> commit Trico e) mproving the tinancial succe and well-being of our sha communities a
TriCo Bancshares — Investor Presentation (October 2020) on 6ix