Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Q4 2020 Earnings Presentation
29 slides from Trico Bancshares's earnings presentation, January 2021
Slide 1: Investor Presentation Fourth Quarter 2020
Investor Presentation Fourth Quarter 2020 January 2021 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 January 2021
Slide 4: Most Recent Quarter Highlights
MOST RECENT QUARTER HIGHLIGHTS Pre-tax pre-provision return on average assets and average equity was 1.96% and 16.33%, respectively and 1.83% and 14.43%, respectively for the three- and twelve-month respective Consistent Profitability periods ended December 31, 2020. Revenues benefited from mort
Slide 5: Company Overview
COMPANY OVERVIEW 5 January 2021
Slide 6: Company Overview
COMPANY OVERVIEW Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $35.28 Market Capitalization: $1.0 Billion Asset Size: $7.6 Billion Deposits: $6.5 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 $24 $0.80 $22 $20 $18 $0.60 Earnings (in Millions) $16 Qtrly EPS (diluted) $14 $12 $0.40 $10 $8 $6 $0.20 $4 $2 $0 Q2'17 Q3'17 Q4'17 * Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 $0.00 Net Income ($MM) $13.6 $11.9 $3.0 $13.9 $15.0 $16.2 $23.2
Slide 9: Shareholder Returns
SHAREHOLDER RETURNS Dividends per Share: 11.1% CAGR Return on Avg. Shareholder Equity Q1 Q2 Q3 Q4 $0.88 10.75% 10.49% $0.82 10.04% 9.47% $0.70 $0.22 8.10% $0.66 $0.22 $0.60 7.18% $0.17 $0.19 $0.52 $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 $0.15 $0.15 $0.17 $
Slide 10: Consistent Organic Growth & Disciplined Acquirer
CONSISTENT ORGANIC GROWTH & DISCIPLINED ACQUIRER Dollars in millions. Total Assets for periods ending 2005 – Q4 2020. 10 January 2021
Slide 11: Top of Mind Themes & Executive Topics
“TOP OF MIND THEMES & EXECUTIVE TOPICS” • Fiscal Policy Changes, Vaccine Distribution, and the Long- Term Timing and Magnitude of Small Business Growth • Leveraging Technologies for Talent and Customer Acquisition • Expansion and Streamlined Execution of PPP…Round II • Building and Growing the Bank
Slide 12: Loans & Credit Quality
LOANS & CREDIT QUALITY 12 January 2021
Slide 13: Consistent Loan Growth
CONSISTENT LOAN GROWTH $5,000 $423 $426 $327 $4,500 6.00% $4,000 $3,500 5.48% 5.50% 5.46% Total Loans (Millions) 5.32% 5.33% $3,000 5.24% 5.23% 5.16% 5.00% 5.05% 5.09% $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 Q4 2020
Slide 14: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO CRE Non-Owner $1,539 Occupied $1,610 CRE-Owner $621 Occupied $546 $639 Multifamily $519 $553 SFR 1-4 Term $515 Commercial & $526 Agriculture & Auto & Other Industrial $246 Farmland 2% 4% $327 Construction SFR HELOC and 6% Junior Liens $362 SFR HELOC and Junior Liens $285 7
Slide 15: CRE Collateral Values
CRE COLLATERAL VALUES 90% 80% 79% <= 60% 70% > 60% - 75% > 75% 64% 60% 62% 62% 55% 54% 50% 50% 47% 44% 44% 40% 42% 40% 37% 38% 30% 31% 20% 21% 10% 8% 0% 5% 2% 2% 1% 4% 6% 0% Hotel/Motel Office Building Retail Building Warehouse Self Storage Other Multifamily CRE Owner Occupied 15 January 2021
Slide 16: Unfunded Loan Commitments
UNFUNDED LOAN COMMITMENTS HELOC - BY VINTAGE Total Unfunded $84 Commitments as of Q4 $88 2020: $1.36 billion* $1,630 $1,557 $372 $40 $27 $542 $535 $20 $0 $28 $0 $254 $221 $223 $643 $628 $530 $522 $556 $557 $523 $62 $359 $45 $324 $288 $247 $251 $11 $64 $197 $179 $76 $80 4Q-2020 4Q-2019 4Q-2020 4Q-201
Slide 17: C&I Utilization
C&I UTILIZATION $600 60% 54.5% 53.3% 52.4% 52.7% 49.3% $500 50% 44.0% 42.9% $400 40% 34.5% Millions of $ $300 30% $235 $219 $207 $221 $254 $262 $249 $248 $243 $247 $265 $273 $372 $200 20% $208 $205 $197 $100 10% $0 0% 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 Outstanding Princi
Slide 18: Loan Yield Composition
LOAN YIELD COMPOSITION • Variable rate loans at their floor have remained steady at 88% of variable loans from Q3 to Q4. • The most prominent index for the variable portfolio is 5 Year Treasury CMT Fixed vs. Variable, Total Loans (ex-PPP) Variable Above Variable Floor At Floor 6% 60% Variable No Flo
Slide 19: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Drivers of Change Under CECL Gross charge offs Rating migration Includes volume Changes in $560 thousand change includes and mix change econometric upgrades and due to originations, factors Gross recoveries downgrades. draws, pay downs, 1.93% $382 thousand Cal
Slide 20: Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES Allocation of Allowance by Segment Dollars in thousands 20 January 2021
Slide 21: Risk Grade Migration
RISK GRADE MIGRATION 0.8% 0.8% 0.9% 1.0% 1.0% 1.0% 1.4% 1.3% 3.0% 3.3% 5.0% 4.8% 14.0% 13.8% 13.6% % of Loan Portfolio Outstanding, by Risk Grade 93.2% 92.9% 83.9% 82.2% 82.1% 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 Pass Watch Special Mention Substandard Zero balance in Doubtful and Loss 21 Januar
Slide 22: Asset Quality Coverage Ratio
ASSET QUALITY Non-Performing Assets as a % of Total Assets 0.77% 0.77% TCBK Peers 0.73% 0.70% 0.64% 0.61% 0.57% 0.58% 0.59% 0.58% 0.53% 0.54% 0.54% 0.53% NPAs have remained below peers 0.47% 0.45% 0.45% while loss coverage has expanded, 0.35% 0.39% with CECL transition and allowance 0.32% 0.30% 0.28
Slide 23: Deposits
DEPOSITS 23 January 2021
Slide 24: Deposits: Strength in Funding
DEPOSITS: STRENGTH IN FUNDING Liability Mix 12/31/2020 Loans to Core Deposits Borrowings & TCBK Peers Subordinated Other 120 Time liabilities, Debt, 1.3% Deposits, 1.8% 100 5.1% 80 81.6 81.6 80.7 80.6 79.1 78.1 76.9 76.9 76.8 76.3 75.9 75.5 60 72.7 40 20 0 Non Interest- 2017 2018 2018 2018 2018 2019
Slide 25: Deposits: Strength in Cost of Funds
DEPOSITS: STRENGTH IN COST OF FUNDS $6,506 $6,248 $6,341 $5,366 $5,430 $5,342 $5,295 $5,367 $5,403 $2,582 Q2 2020 includes $2,487 $2,518 $413 million $1,761 $1,762 $1,780 $1,777 $1,833 $1,883 $4,009 increase QvQ directly attributed $1,368 to PPP borrowers $3,223 $3,363 $3,446 $3,580 2018 include
Slide 26: Financials
F NANCIALS SAY i trico bancshares
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% 59.7% 58.4% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 PPNR as % of Average Assets ROAA 1.43% 1.94% 1.24% 1.79% 1.73% 1.83% 1.70% 1.11% 1.60% 1.02% 0.8
Slide 28: Well Capitalized
WELL CAPITALIZED Tier 1 Capital Ratio CET1 Ratio 14.4% 13.3% 13.8% 14.0% 13.7% 13.7% 12.9% 13.2% 12.5% 12.2% 12.2% 11.7% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 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% 9.3% 14.1% 9.
Slide 29: January 2020 August
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