Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Investor Presentation (July 2022)
27 slides from Trico Bancshares's investor presentation, July 2022
Slide 1: Investor Presentation Second Quarter 2022
Investor Presentation Second Quarter 2022 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 Investor Presentation | Second Quarter 2022
Slide 4: Most Recent Quarter Highlights
Most Recent Quarter Highlights Consistent Profitability • Pre-tax pre-provision ROAA and ROAE were 1.79% and 16.61%, respectively, for the quarter ended June 30, 2022, and 1.92% and 16.24%, respectively, for the same quarter in the prior year • Our efficiency ratio was 55.4% for the quarter ended Ju
Slide 5: Company Overview
Company Overview Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $45.64 Market Cap.: $1.5 Billion Asset Size: $10.1 Billion Loans: $6.1 Billion Deposits: $8.8 Billion Bank Branches: 71 ATMs: 89 Bank ATMs, with access to over 37,000 network ATMs Market Area: TriCo currently serves 31 count
Slide 6: 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 Dan Bailey Craig Carney Greg Gehlmann Judi Giem EVP Chief Banking Officer EVP Chief Credit Officer SVP General Counsel SVP Ch
Slide 7: Positive Earnings Track Record
Positive Earnings Track Record $36 $1.20 March 2022 Acquired Valley Republic Bancorp ($1.4B assets) $32 July 2018 Acquired FNB Bancorp ($1.2B assets) $28 Earnings (in Millions) $24 $0.80 Qtrly EPS (diluted) $20 $16 $12 $0.40 $8 $4 $0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
Slide 8: Shareholder Returns
Shareholder Returns Dividends per Share: 10.6% CAGR* Return on Avg. Shareholder Equity 12.10% Q1 Q2 Q3 Q4 $1.25 $1.00 10.75% 10.49% 9.47% 9.93% $1.00 $0.88 $0.82 $0.25 8.10% $0.66 $0.70 $0.22 7.18% $0.60 $0.22 $0.75 $0.17 $0.19 $0.25 $0.15 $0.22 $0.50 $0.22 $0.15 $0.17 $0.17 $0.25 $0.25 $0.19 $0.22
Slide 9: Consistent Growth: Organic Growth and Disciplined Acquisitions
Consistent Growth Organic Growth and Disciplined Acquisitions CAGR 5 yrs. 10 yrs. Total Assets 16.8% 14.9% • Asset Dollars in Billions. 9 Investor Presentation | Second Quarter 2022
Slide 10: Loans and Credit Quality
Loans and Credit Quality 10 10 Investor Presentation | Second Quarter 2022
Slide 11: Consistent Loan Growth
Consistent Loan Growth 6.50% $6,000 $6,097 $5,796 $5,000 $61 $361 $240 $151 $426 $4,859 $423 $327 $4,711 $4,739 $4,610 $4,111 $4,381 $4,386 $4,407 $4,443 5.50% $4,000 $4,022 5.44% 5.09% 5.15% 5.24% 5.23% 4.92% 4.96% $3,000 5.05% 4.73% 4.86% 4.78% 4.69% $2,000 4.50% $1,000 $0 3.50% 2018 2019 Q1 2020
Slide 12: Gross Production vs. Payoff
Gross Production vs. Payoff Originations to date in TCBK originated over $0.9 billion in In addition to the nearly $0.8 billion in TCBK originated nearly $1.5 billion 2022 surpass all of loans in 2019, while facing headwinds non-PPP loan originations in 2020, in 2021, while facing headwinds of 2020
Slide 13: Diversified Loan Portfolio
Diversified Loan Portfolio CRE Non- 2Q-2022 $1,760 $242 Occupied Owner 2Q-2021 $1,534 CRE-Owner 2Q-2022 $796 $130 Occupied 2Q-2021 $660 Multifamily 2Q-2022 $852 $18 2Q-2021 $828 2Q-2022 $689 $31 SFR 1-4 Term 2Q-2021 $660 and Junior Commercial & Industrial 2Q-2022 $277 $164 2Q-2021 $448 Agriculture &
Slide 14: Unfunded Loan Commitments
Unfunded Loan Commitments HELOCs – by vintage, with weighted avg. coupon 6.00% $175 Outstanding Principal ($MM) 4.77% 4.96% 4.84% 5.00% 4.64% 4.71% 4.63% 4.68% 4.80% $150 Unfunded Commitment ($MM) 5.00% 4.55% 4.58% 4.54% 4.12% 3.68% $125 4.00% 3.43% $170 $100 3.00% $75 2.00% $50 1.00% $25 $119 0.00%
Slide 15: C&I Utilization
C&I Utilization 20000% C&I Utilization by NAICS Industry: 2Q-2022 • Benefits of the VRB merger 18000% 16000% include increased actual and 14000% Outstanding (mln) Unfunded (mln) $115 potential utilization rate and 12000% $98 $90 $82 $82 10000% balance growth 8000% $59 $70 $54 $49 $53 6000% $45 $42 $
Slide 16: Loan Yield Composition
Floating Loan Yield Composition 14% Fixed 57% 43% Adjustable + Floating 99% of Floating Adjustable Predominantly benchmarked 43% 1,000 benchmarked to Prime to 5 Year Treasury 7.00% 900 5.81% 5.94% 5.92% 6.00% 5.80% 5.76% 5.79% 800 5.46% 700 5.00% 5.00% 4.73% 4.57% 600 4.26% 4.23% 3.97% 4.00% 500 3.0
Slide 17: Allowance for Credit Losses: Drivers of Change under CECL
Allowance for Credit Losses Drivers of Change under CECL 1.60% of Total Gross charge offs Reduction in Continued Loans Loan growth of $261 million Q2 $0.401 million Criticized & improvement in 1.64% Classified loans unemployment Gross recoveries of Total of $17.5 million rate and low loss
Slide 18: Allowance for Credit Losses: Allocation of Allowance by Segment
Allowance for Credit Losses Allocation of Allowance by Segment Municipal loans included in Commercial and industrial segment within the presented table 18 Investor Presentation | Second Quarter 2022
Slide 19: Risk Grade Migration
Risk Grade Migration 1.2% 1.2% 1.0% 1.1% 0.8% 0.8% 1.6% 2.1% 1.8% 2.9% 2.6% 2.5% 7.8% 9.5% 9.7% % of Loan Portfolio Outstanding, by Risk Grade 9.3% 11.4% 11.2% 89.6% 87.2% 87.6% 87.8% 84.6% 85.0% 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 Pass Watch Special Mention Substandard Zero balance in
Slide 20: Asset Quality
Asset Quality NPAs have remained below peers Non-Performing Assets as a % of Total Assets while loss coverage has expanded, TCBK 0.75% 0.73% 0.73% first with the adoption of CECL and 0.68% 0.64% 0.59% 0.61% expanded during the pandemic, 0.54% 0.53% 0.58% 0.54% 0.54% forward-looking qualitative facto
Slide 21: Deposits
Deposits 21 21 Investor Presentation | Second Quarter 2022
Slide 22: Deposits: Strength in Funding
Deposits: Strength in Funding Liability Mix 06/30/2022 Loans to Core Deposits (%) Borrowings & Other TCBK Peers Time 120 Subordinated liabilities, Deposits, Debt, 1.5% 2.0% 100 3.6% 80 81.6 81.6 80.6 78.1 76.9 75.9 60 72.6 71.8 70.1 68.3 66.9 66.4 66.0 40 20 0 Non Interest- 2019 2019 2019 2020 2020
Slide 23: Deposits: Strength in Cost of Funds
Deposits: Strength in Cost of Funds 9,000 $8,714 $8,757 Successful transition and 8,000 retention of $7,237 $7,367 $6,992 acquired VRB 7,000 $6,863 $3,583 $3,604 $6,506 deposits. $6,248 $6,341 6,000 $2,943 $2,980 $5,342 $5,367 $5,403 Industry leading $5,295 $2,767 $2,844 $2,518 $2,582 cost of to
Slide 24: Financials
Financials 24 24 Investor Presentation | Second Quarter 2022
Slide 25: Current Operating Metrics
Current Operating Metrics Net Interest Margin (FTE) Efficiency Ratio 4.30% 4.47% Adjusted for Merger 4.23% 4.22% 3.96% 3.58% 3.54% 68.7% 65.4% 63.7% 59.7% 58.4% 53.2% 55.7% 52.3% 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 PPNR as % of Average Assets ROAA 1.43% 1.43% 1.94%
Slide 26: Well Capitalized
Well Capitalized Tier 1 Capital Ratio CET1 Ratio 14.4% 14.2% 13.3% 14.0% 13.2% 13.7% 13.7% 12.9% 13.2% 12.5% 12.2% 12.3% 11.7% 11.5% 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Total Risk Based Capital Tangible Capital Ratio 15.4% 10.6% 15.1% 15.2% 14.8% 14.4% 9.3% 9.5% 9.3
Slide 27: XYZ
Pending update – no material change to format XYZ 27 Investor Presentation | Second Quarter 2022