Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Q1 2021 Earnings Presentation
30 slides from Trico Bancshares's earnings presentation, Apr 28, 2021
Slide 1: First Quarter 2021 Investor Presentation
April 2021 Investor Presentation 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 Exhibit 99.2
Slide 2: Safe Harbor Statement
April 2021 Investor Presentation 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 involv
Slide 3: Agenda
April 2021 Investor Presentation AGENDA • Most Recent Quarter Recap • Company Overview • Lending Overview • Deposit Overview • Financials 3
Slide 4: Most Recent Quarter Highlights
April 2021 Investor Presentation MOST RECENT QUARTER HIGHLIGHTS 4 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. • Ex
Slide 5: Company Overview
April 2021 Investor Presentation COMPANY OVERVIEW 5
Slide 6: Company Overview
April 2021 Investor Presentation 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 Nort
Slide 7: Executive Team
April 2021 Investor Presentation EXECUTIVE TEAM 7 Rick Smith President & CEO TriCo since 1993 John Fleshood EVP Chief Operating Officer TriCo since 2016 Dan Bailey EVP Chief Banking Officer TriCo since 2007 Craig Carney EVP Chief Credit Officer TriCo since 1996 Peter Wiese EVP Chief Financial Office
Slide 8: Positive Earnings Track Record
April 2021 Investor Presentation POSITIVE EARNINGS TRACK RECORD 8 * Impact of the Tax Cut and Jobs Act results in adjusted quarterly diluted EPS of $0.45.
Slide 9: Shareholder Returns
April 2021 Investor Presentation SHAREHOLDER RETURNS 9 Dividends per Share: 11.5% CAGR* Dividends as % of Earnings Return on Avg. Shareholder Equity Diluted EPS $0.11 $0.15 $0.15 $0.17 $0.19 $0.22 $0.25 $0.13 $0.15 $0.17 $0.17 $0.19 $0.22 $0.13 $0.15 $0.17 $0.17 $0.22 $0.22 $0.15 $0.15 $0.17 $0.19 $
Slide 10: Consistent Growth
April 2021 Investor Presentation CONSISTENT GROWTH Organic Growth and Disciplined Acquisitions 10 CAGR 5 yrs. 10 yrs. Total Assets 12.8% 13.8% Excluding PPP 11.8% 13.3%
Slide 11: "Top of Mind" Executive Management Themes and Topics
April 2021 Investor Presentation “TOP OF MIND” Executive Management Themes and Topics 11 • 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 Acquisi
Slide 12: Loans and Credit Quality
April 2021 Investor Presentation LOANS AND CREDIT QUALITY 12
Slide 13: Consistent Loan Growth
April 2021 Investor Presentation CONSISTENT LOAN GROWTH 13 $423 $426 $327 $361 5.16% 5.24% 5.48% 5.50% 5.46% 5.33% 5.23% 5.05% 4.78% 5.09% 5.15% 3.00% 4.00% 5.00% 6.00% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 2017 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3
Slide 14: Diversified Loan Portfolio
April 2021 Investor Presentation DIVERSIFIED LOAN PORTFOLIO 14 $1,555 $641 $765 $641 $551 $331 $222 $187 $73 $1,634 $553 $559 $510 $261 $367 $242 $167 $81 CRE Non-Owner Occupied CRE-Owner Occupied Multifamily SFR 1-4 Term Commercial & Industrial SFR HELOC and Junior Liens Construction Agriculture &
Slide 15: CRE Collateral Values
April 2021 Investor Presentation CRE COLLATERAL VALUES 15 79% 53% 58% 63% 65% 70% 38% 46% 21% 41% 40% 35% 34% 26% 59% 46% 0% 5% 2% 2% 1% 3% 3% 8% Hotel/Motel Office Building Retail Building Warehouse Self Storage Other Multifamily CRE Owner Occupied <= 60% > 60% - 75% > 75% LTV Range
Slide 16: HELOCs and Unfunded Loan Commitments
April 2021 Investor Presentation HELOCs – by vintage, with weighted avg. coupon UNFUNDED LOAN COMMITMENTS 16 $1,575 $1,653 $557 $262 $328 $365 $769 $563 $644 $563 $643 $516 $225 $244 $188 $168 $70 $80 $113 $82 $384 $235 $511 $550 $35 $31 $36 $20 $1 $226 $204 $63 $57 $11 $66 1Q-2021 1Q-2020 1Q-2021 1
Slide 17: C&I Utilization
April 2021 Investor Presentation C&I UTILIZATION 17 $249 $248 $243 $247 $262 $208 $205 $197 $187 $219 $207 $221 $254 $235 $265 $273 $372 $384 53.3% 54.5% 52.4% 49.3% 52.7% 44.0% 42.9% 34.5% 32.7% 0% 10% 20% 30% 40% 50% 60% $0 $100 $200 $300 $400 $500 $600 $700 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020
Slide 18: Loan Yield Composition
April 2021 Investor Presentation LOAN YIELD COMPOSITION 18 Fixed 35% Variable At Floor 58% Variable Above Floor 6% Variable No Floor 1% Fixed vs. Variable, Total Loans (ex-PPP) Dollars in millions, Wtd Avg Rate (weighted average rate) as of 03/31/2021 and based upon outstanding principal; excludes
Slide 19: Allowance for Credit Losses
April 2021 Investor Presentation ALLOWANCE FOR CREDIT LOSSES 19 Drivers of Change under CECL Change in reserve for all collectively and individually analyzed loans rated criticized or worse Changes in econometric factors reflect improving outlook California Unemployment remains the largest dri
Slide 20: Allowance for Credit Losses: Allocation by Segment
April 2021 Investor Presentation ALLOWANCE FOR CREDIT LOSSES 20 Allocation of Allowance by Segment ($ Thousands) Allowance for Credit Losses Amount % of Credit Outstanding Amount % of Credit Outstanding Amount % of Credit Outstanding % of Credit excluding PPP Loans Commercial real estate: CRE non-ow
Slide 21: Risk Grade Migration
April 2021 Investor Presentation RISK GRADE MIGRATION 21 84.6%82.1%82.2%83.9% 92.9%93.2% 11.4% 13.6%13.8% 14.0% 4.8%5.0% 2.9%3.3%3.0%1.3%1.4% 1.0% 1.2%1.0%1.0%0.9%0.8%0.8% 1Q-20214Q-20203Q-20202Q-20201Q-20204Q-2019 % o f L o a n P o rt fo lio O u ts ta n d in g , b y R is k G ra d e Pass Watch Speci
Slide 22: Asset Quality
April 2021 Investor Presentation ASSET QUALITY 22 Peer group consists of 99 closest peers in terms of asset size, range $4.1-11.5 Billion source: BankRegData.com NPA and NPL ratios displayed are net of guarantees 0.53% 0.54% 0.45% 0.45% 0.32% 0.35% 0.30% 0.28% 0.30% 0.31% 0.33% 0.39% 0.39% 0.77%
Slide 23: Deposits
April 2021 Investor Presentation DEPOSITS 23
Slide 24: Deposits: Strength in Funding
April 2021 Investor Presentation DEPOSITS: STRENGTH IN FUNDING 24 Total Deposits = $6.86 billion 96.8% of Total Liabilities Liability Mix 3/31/2021 Peer group consists of 99 closest peers in terms of asset size, range $4.7-11.5 Billion; source: BankRegData.com Net Loans includes LHFS and Allowan
Slide 25: Deposits: Strength in Cost of Funds
April 2021 Investor Presentation Cost of Deposits FY 2018 QTD Q1'19 QTD Q2'19 QTD Q3'19 QTD Q4'19 QTD Q1'20 QTD Q2'20 QTD Q3'20 QTD Q4'20 QTD Q1'21 Noninterest-Bearing Demand - - - - - - - - - - Int-Bearing Demand & Savings 0.14% 0.18% 0.20% 0.19% 0.19% 0.16% 0.09% 0.06% 0.05% 0.05% Time Deposits 0.
Slide 26: Financials
April 2021 Investor Presentation FINANCIALS 26
Slide 27: Consistent Operating Metrics
April 2021 Investor Presentation 1.11% 1.02% 0.89% 1.24% 1.43% 0.91% 1.75% 2015 2016 2017 2018 2019 2020 Q1 2021 1.79% 1.60% 1.70% 1.73% 1.94% 1.83% 2.13% 2015 2016 2017 2018 2019 2020 Q1 2021 4.32% 4.23% 4.22% 4.30% 4.47% 3.96% 3.74% 2015 2016 2017 2018 2019 2020 Q1 2021 65.1% 68.7% 65.4% 63.7% 59.
Slide 28: Well Capitalized
April 2021 Investor Presentation WELL CAPITALIZED 28 Tier 1 Capital Ratio Total Risk Based Capital CET1 Ratio Tangible Common Equity Ratio 9.2% 9.1% 9.3% 9.5% 10.6% 9.3% 9.1% 2015 2016 2017 2018 2019 2020 Q1 2021 13.8% 13.7% 13.2% 13.7% 14.4% 14.0% 13.9% 2015 2016 2017 2018 2019 2020 Q1 2021 12.2% 1
Slide 29: August 2020
April 2021 Investor Presentation29 August 2020
Slide 30: Strategic Operating Expense
April 2021 Investor Presentation STRATEGIC OPERATING EXPENSE 30 3.04 2.95 2.91 2.86 2.87 2.85 2.77 2.68 2.56 2.40 1.50 1.70 1.90 2.10 2.30 2.50 2.70 2.90 3.10 3.30 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 Operating Expense Ratio to Average Assets (vs. UBPR Peer