Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Q2 2023 Earnings Presentation
35 slides from Trico Bancshares's earnings presentation, Jul 26, 2023
Slide 1: Investor Presentation Second Quarter 2023
Investor Presentation Second Quarter 2023 Richard P. Smith, President & Chief Executive Officer Peter G. Wiese, EVP & Chief Financial Officer Dan K. Bailey, EVP & Chief Banking Officer John S. Fleshood, EVP & Chief Operating Officer Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement Investor Presentation | Second Quarter 20232 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 state
Slide 3: Tri Counties Bank
Tri Counties Bank Investor Presentation | Second Quarter 20233
Slide 4: Agenda
Agenda • Most Recent Quarter Recap • Company Overview • Lending Overview • Deposit Overview • Financials 4 • Judi Giem, SVP & Chief Human Resources Officer • Peter Wiese, EVP & Chief Financial Officer • Dan Bailey, EVP & Chief Banking Officer • Rick Smith, President & Chief Executive Officer • John
Slide 5: Most Recent Quarter Highlights
Most Recent Quarter Highlights Investor Presentation | Second Quarter 20235 Operating Leverage and Profitability • Pre-tax pre-provision ROAA and ROAE were 1.76% and 15.54%, respectively, for the quarter ended June 30, 2023, and 1.74% and 15.70%, respectively, for the same quarter in the prior year
Slide 6: Company Overview
Company Overview Investor Presentation | Second Quarter 20236 Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $33.20 Market Cap.: $1.10 Billion Asset Size: $9.85 Billion Loans: $6.52 Billion Deposits: $8.10 Billion Bank Branches: 69 ATMs: 87 Bank ATMs, with access to ~ 40,000 in network M
Slide 7: Key Executive Management Themes and Topics
Key Executive Management Themes and Topics 7 “Top of Mind for Today and Tomorrow” • New Customer Relationships – Offensive Strategies While Seeking to Drive Alpha and Protect Beta • Active Monitoring of Loans for Early Warning Signs While Maintaining Sufficient Reserves • Terminal Interest Rate and
Slide 8: Positive Earnings Track Record
Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Net Income ($MM) $13.9 $15.0 $16.2 $23.2 $22.7 $23.1 $23.4 $22.9 $16.1 $7.4 $17.6 $23.6 $33.6 $28.4 $27.4 $28.2 $20.4 $31.4 $37.3 $36.3 $35.8 $24.9 Qtrly Diluted EPS $0
Slide 9: Shareholder Returns
$0.52 $0.60 $0.74 $0.53 $1.13 $0.67 $1.07 $0.58 $0.65 $0.75 $0.25 $0.95 $0.93 $0.75 $0.51 $0.53 $0.76 $0.59 $0.92 $1.12 $0.76 $0.75 $0.79 $0.94 $1.09 $1.74 $2.54 $3.00 $2.16 $3.94 $3.83 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 2017 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q437
Slide 10: Consistent Growth
Consistent Growth Investor Presentation | Second Quarter 202310 Organic Growth and Disciplined Acquisitions Asset Dollars in Billions. 5 yrs. 10 yrs. 15.2% 13.2% CAGR, Assets Trailing 10 years Trailing 5 quarters
Slide 11: Deposits
11 Investor Presentation | Second Quarter 2023 Deposits 11
Slide 12: Liability Mix: Strength in Funding
Liability Mix: Strength in Funding Investor Presentation | Second Quarter 202312 Total Deposits = $8.10 billion 94.3% of Funding Liabilities Liability Mix 06/30/2023 Peer group consists of 99 closest peers in terms of asset size, range $4.7-11.5 Billion; source: BankRegData.com Net Loans include
Slide 13: Deposits: Strength in Cost of Funds
Deposits: Strength in Cost of Funds Investor Presentation | Second Quarter 202313 Balances presented in millions, end of period Relationship focused pricing for retention and acquisition Continued best in class total deposit Beta, 10.8% cycle to date $399 $376 $345 $328 $324 $327 $298 $349 $32
Slide 14: Deposits by Region
$186 $178 $134 $132 $310 - 100 200 300 400 500 600 700 800 $0-$100k >$100k-$250k >$250k - $500k >$500k - $1mln >$1mln $236 $214 $210 $205 $720 - 100 200 300 400 500 600 700 800 $390 $274 $188 $138 $266 - 100 200 300 400 500 600 700 800 $618 $393 $273 $181 $356 - 100 200 300 400 500 600 700 800 G re
Slide 15: Deposits: Demand & Savings Deposit Mix
# 34,961 # 204,380 Deposits: Demand & Savings Deposit Mix Investor Presentation | Second Quarter 202315 [1] Excludes time deposits, bank owned operational deposits and public funds. 486 495 462 474 1,431 1,656 944 539 308 359 Consumer Business Prior Quarter, Total Balance Tier, $ millions [1]Total D
Slide 16: Liquidity Sources
$2,497 $1,814 $80 Liquidity Sources [1] Total Borrow Capacity Unpledged Securities AFS Cash Liquidity Investor Presentation | Second Quarter 202316 [1] $ millions, as of 6/30/2023, cash based upon total held at or in transit with FRB [2] Based upon estimated uninsured deposits reported in Call Repor
Slide 17: Loans and Credit Quality
Investor Presentation | Second Quarter 2023 Loans and Credit Quality 1717
Slide 18: Loan Portfolio and Yield
Loan Portfolio and Yield Investor Presentation | Second Quarter 202318 Q1 2021 increase includes $98MM Jumbo Mortgage pool purchase End of period balances are presented net of fees and include LHFS. Yields based on average balance and annualized quarterly interest income. Acquired VRB Loans of
Slide 19: Gross Production vs. Payoff
Gross Production vs. Payoff Investor Presentation | Second Quarter 202319 Outstanding Principal in Millions, excludes PPP Includes Q1 2021 increase of $98MM and Q4 2020 increase of $40MM in Jumbo Mortgage pool purchases $800MM in outstanding at close of Q1-2022 related to VRB Acquisitions ($79
Slide 20: Diversified Loan Portfolio
CRE Non-Owner Occupied 33% CRE-Owner Occupied 15%Multifamily 15% SFR 1-4 Term 13% Commercial & Industrial 9% SFR HELOC and Junior Liens 5% Construction 4% Agriculture & Farmland 5% Auto & Other 1% $2,143 $1,997 $972 $926 $952 $870 $830 $720 $576 $500 $364 $384 $278 $318 $338 $324 $59 $58 2Q-2023 2Q-
Slide 21: Office RE Collateral
Office RE Collateral Investor Presentation | Second Quarter 202321 Graph circle size represent total loan Commitments in the Region; regional assignment based upon zip code of collateral CRE loans secured by office collateral represents 9.5% of total Loan Portfolio Commitments. TCBK Community Ba
Slide 22: CRE Collateral Values
70% 51% 79% 62% 89% 71% 39% 48% 28% 46% 21% 38% 11% 25% 60% 45% 2% 3% 0% 0% 0% 4% 1% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Retail Building Office Building Hotel/Motel Light Industrial Self Storage Other Multifamily CRE Owner Occupied <= 60% > 60% - 75% > 75% CRE Collateral Values Investor P
Slide 23: Unfunded Loan Commitments
Unfunded Loan Commitments Investor Presentation | Second Quarter 202323 HELOCs – by vintage, with weighted avg. coupon (7.70% total WAC) Outstanding Principal and Commitments exclude unearned fees and discounts/premiums, Leases, DDA Overdraft, and Credit Cards PPP Excluded from C&I for $0.5 mill
Slide 24: C&I Utilization
C&I Utilization Investor Presentation | Second Quarter 202324 Excludes PPP loans; Outstanding Principal excludes unearned fees and discounts/premiums ($ millions) C&I yield is expected to grow incrementally through the remainder of 2023. Paired with treasury management services, C&I customers
Slide 25: Loan Yield Composition
Loan Yield Composition Investor Presentation | Second Quarter 202325 Dollars in millions, excludes PPP as well as unearned fees and accretion/amortization therein Wtd Avg Rate (weighted average rate) as of 06/30/2023 and based upon outstanding principal; Next Reprice signifies either the next sc
Slide 26: Allowance for Credit Losses
Allowance for Credit Losses Investor Presentation | Second Quarter 202326 Drivers of Change under CECL Loan portfolio growth of $98 million in Q2 Econometric factors for Unemployment and Corporate BBB yield driving increase in reserve rate Gross charge-offs $0.276 million Gross recoveries $0
Slide 27: Allowance for Credit Losses: Allocation by Segment
Allowance for Credit Losses Investor Presentation | Second Quarter 202327 Allocation of Allowance by Segment
Slide 28: Risk Grade Migration
Risk Grade Migration Investor Presentation | Second Quarter 202328 Zero balance in Doubtful and Loss 87.8%87.8%89.0%87.8%87.6%89.6% 8.8%9.2%8.0%9.7%9.5%7.8% 2.4%2.0%2.0%1.8%2.1%1.6% 1.0%1.0%1.1%0.8%0.8%1.1% 2Q-20231Q-20234Q-20223Q-20222Q-20221Q-2022 Pass Watch Special Mention Substandard
Slide 29: Asset Quality
385% 395% 342% 297% 263% 293% 281% 690% 831% 586% 501% 686% 320% 20 2% 19 1% 17 9% 18 7% 19 4% 19 7% 21 0% 21 7% 31 0% 32 2% 30 5% 31 5% 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 TCBK Peers Asset Quality Investor Presentation | Second Qua
Slide 30: Financials
Financials 3030 Investor Presentation | Second Quarter 2023
Slide 31: Net Interest Income (NII) and Margin (NIM)
Net Interest Income (NII) and Margin (NIM) Investor Presentation | Second Quarter 202331
Slide 32: Net Interest Income (NII) and Margin (NIM)
Net Interest Income (NII) and Margin (NIM) Investor Presentation | Second Quarter 202332
Slide 33: Current Operating Metrics
0.89% 1.24% 1.43% 0.91% 1.43% 1.28% 1.24% 2017 2018 2019 2020 2021 2022 2023 1.70% 1.73% 1.94% 1.83% 1.91% 1.97% 1.97% 2017 2018 2019 2020 2021 2022 2023 65.4% 63.7% 59.7% 58.4% 53.2% 53.0% 54.4% 2017 2018 2019 2020 2021 2022 2023 4.22% 4.30% 4.47% 3.96% 3.58% 3.88% 4.08% 2017 2018 2019 2020 2021 20
Slide 34: Well Capitalized
11.7% 12.5% 13.3% 12.9% 13.2% 11.7% 12.0% 2017 2018 2019 2020 2021 2022 2023 13.2% 13.7% 14.4% 14.0% 14.2% 12.4% 12.7% 2017 2018 2019 2020 2021 2022 2023 14.1% 14.4% 15.1% 15.2% 15.4% 14.2% 14.5% 2017 2018 2019 2020 2021 2022 2023 9.3% 9.5% 10.6% 9.3% 9.2% 7.6% 8.1% 2017 2018 2019 2020 2021 2022 202
Slide 35: XYZ 202335 Pending update – no material change to format
XYZ Investor Presentation | Second Quarter 202335 Pending update – no material change to format