Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Q1 2022 Earnings Presentation
28 slides from Trico Bancshares's earnings presentation, Apr 28, 2022
Slide 1: Investor Presentation First Quarter 2022
Investor Presentation First Quarter 2022 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
Safe Harbor Statement Investor Presentation | First Quarter 20222 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 statem
Slide 3: Agenda
Investor Presentation | First Quarter 20223 • Most Recent Quarter Recap • Company Overview • Lending Overview • Deposit Overview • Financials Agenda
Slide 4: Most Recent Quarter Highlights
Most Recent Quarter Highlights Investor Presentation | First Quarter 20224 Consistent Profitability • Pre-tax pre-provision ROAA and ROAE were 1.69% and 14.70%, respectively, for the quarter ended March 31, 2022, and 2.13% and 17.65%, respectively, for the same quarter in the prior year • Our effici
Slide 5: Company Overview
Company Overview Investor Presentation | First Quarter 20225 Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $40.03 Market Cap.: $1.4 Billion Asset Size: $10.1 Billion Loans: $5.9 Billion Deposits: $8.7 Billion Bank Branches: 72 ATMs: 86 Bank ATMs, with access to over 37,000 network ATMs
Slide 6: Executive Team
Executive Team 6 Rick Smith President & CEO TriCo since 1993 John Fleshood EVP Chief Operating Officer TriCo since 2016 Dan Bailey EVP Chief Banking Officer TriCo since 2007 Craig Carney EVP Chief Credit Officer TriCo since 1996 Peter Wiese EVP Chief Financial Officer TriCo since 2018 Judi Giem SVP
Slide 7: Positive Earnings Track Record
Positive Earnings Track Record Investor Presentation | First Quarter 20227 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Net Income ($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 Qtrly
Slide 8: Shareholder Returns
Shareholder Returns Investor Presentation | First Quarter 20228 Dividends per Share: 10.6% CAGR* Dividends as % of Earnings Return on Avg. Shareholder Equity Diluted EPS $0.15 $0.15 $0.17 $0.19 $0.22 $0.25 $0.25 $0.15 $0.17 $0.17 $0.19 $0.22 $0.25 $0.15 $0.17 $0.17 $0.22 $0.22 $0.25 $0.15 $0.17 $0.1
Slide 9: Consistent Growth
$2.2 $2.2 $2.6 $2.6 $2.7 $3.9 $4.2 $4.5 $4.8 $6.4 $6.5 $7.6 $8.6 $10.1 11.71 11.62 12.49 13.30 14.59 15.31 16.81 17.77 19.01 18.97 21.69 23.09 25.80 23.04 $0.00 $4.00 $8.00 $12.00 $16.00 $20.00 $24.00 $0 $2 $4 $6 $8 $10 $12 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 Org
Slide 10: Merger – Valley Republic Bancorp
Merger – Valley Republic Bancorp Investor Presentation | First Quarter 202210 Acquisition & Conversion Completed in March 2022 • Market share source: S&P Global • Acquired balance sheet figures exclude purchase accounting Market Overview • Three full-service branches in Bakersfield and one in Delano
Slide 11: Loans and Credit Quality
Loans and Credit Quality 11Investor Presentation | First Quarter 202211
Slide 12: Consistent Loan Growth
Consistent Loan Growth Investor Presentation | First Quarter 202212 • 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 $7
Slide 13: Gross Production vs. Payoff
$144 $200 $229 $349 $178 $199 $165 $250 $464 $285 $303 $412 $396 -$118 -$147 -$139 -$210 -$118 -$139 -$131 -$166 -$241 -$192 -$243 -$250 -$225 -$21 $14 -$15 -$14 $6 -$56 -$20 -$47 -$59 $6 -$33 -$47 $4 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-
Slide 14: Diversified Loan Portfolio
$1,634 $1,558 $716 $637 $819 $765 $669 $641 $272 $186 $362 $331 $242 $222 $227 $187 $62 $71 $243 $136 $19 $33 $165 $12 $62 $89 1Q-2022 1Q-2021 1Q-2022 1Q-2021 1Q-2022 1Q-2021 1Q-2022 1Q-2021 1Q-2022 1Q-2021 1Q-2022 1Q-2021 1Q-2022 1Q-2021 1Q-2022 1Q-2021 1Q-2022 1Q-2021 C R E N o n - O w n e r O cc
Slide 15: Unfunded Loan Commitments
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $0 $25 $50 $75 $100 $125 $150 $175 20222021202020192018201720162015201420132012201120102009>2009 Private Balance (MM) Unfunded (MM) WA Rate 3.79% 3.29% 4.01% 4.40%4.45%4.44%4.37%4.30%4.37%4.60% 4.98% 4.47%4.42%4.62% 3.74% $1,914 $1,575 $845 $769 $360 $328 $4
Slide 16: C&I Utilization
$85 $51 $54 $59 $37 $28 $29 $11 $12 $81$80 $100 $83 $49 $47 $53 $14 $25 $22 $80 52% 34% 40% 55% 44% 35% 67% 30% 36% 50% 0% 2000% 4000% 6000% 8000% 10000% 12000% 14000% 16000% 18000% 20000% Oil & Gas Extraction Construction Consumer Real Estate Wholesale Finance and Insurance Trans and Warehouse Heal
Slide 17: Loan Yield Composition
$800 $310 $228 $301 $427 $666 $617 4.60% 4.63% 5.00% 4.73% 4.29% 4.17% 3.85% 4.33% 4.66% 4.68% 4.92% 5.07% 5.11% 4.34% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 Monthly < 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years Variable Loans
Slide 18: Allowance for Credit Losses
Allowance for Credit Losses Investor Presentation | First Quarter 202218 Drivers of Change under CECL Purchased Credit Deteriorated (PCD) loans totaled $68.5 million from Valley Republic (VRB) [1] Continued improvement in Unemployment Rate and low loss experience drive reduce reserve requirement
Slide 19: Allowance for Credit Losses
Allowance for Credit Losses Investor Presentation | First Quarter 202219 Allocation of Allowance by Segment Municipal loans included in Commercial and industrial segment within the presented table ($ Thousands) Allowance for Credit Losses Loans (Excl LHFS) ACL Amount ACL % of Loans Loans (Excl LHF
Slide 20: Risk Grade Migration
Risk Grade Migration Investor Presentation | First Quarter 202220 Zero balance in Doubtful and Loss 87.6%89.6%87.2%85.0%84.6%82.1% 9.5%7.8% 9.3%11.2%11.4%13.6% 2.1%1.6%2.5%2.6%2.9%3.3% 0.8%1.1%1.0%1.2%1.2%1.0% 1Q-20224Q-20213Q-20212Q-20211Q-20214Q-2020 % o f L o a n P o rt fo lio O u ts ta n d in
Slide 21: Asset Quality
Asset Quality Investor Presentation | First Quarter 202221 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 Coverage Ratio: Allowance as % of Non-Performing Loans NPAs have remained
Slide 22: Deposits
Deposits 22Investor Presentation | First Quarter 202222
Slide 23: Deposits: Strength in Funding
Deposits: Strength in Funding Investor Presentation | First Quarter 202223 Total Deposits = $8.72 billion 98.5% of Funding Liabilities Liability Mix 03/31/2022 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
Slide 24: Deposits: Strength in Cost of Funds
Cost of Deposits Noninterest-Bearing Demand - - - - - - - - - - - - - Int-Bearing Demand & Savings 0.18% 0.20% 0.19% 0.19% 0.16% 0.09% 0.06% 0.05% 0.04% 0.04% 0.05% 0.03% 0.04% Time Deposits 1.18% 1.28% 1.39% 1.27% 1.23% 1.09% 0.89% 0.68% 0.64% 0.55% 0.52% 0.45% 0.36% Total Deposits 0.20% 0.22% 0.23
Slide 25: Financials
Financials 2525 Investor Presentation | First Quarter 2022
Slide 26: Current Operating Metrics
Current Operating Metrics Investor Presentation | First Quarter 202226 Net Interest Margin (FTE) PPNR as % of Average Assets Efficiency Ratio ROAA 4.23% 4.22% 4.30% 4.47% 3.96% 3.58% 3.39% 2016 2017 2018 2019 2020 2021 2022 68.7% 65.4% 63.7% 59.7% 58.4% 53.2% 55.9% 51.1% 2016 2017 2018 2019 2020 202
Slide 27: Well Capitalized
Well Capitalized Investor Presentation | First Quarter 202227 Tier 1 Capital Ratio Total Risk Based Capital CET1 Ratio Tangible Common Equity Ratio 2022 values at quarter ended 3/31/2022 13.7% 13.2% 13.7% 14.4% 14.0% 14.2% 13.1% 2016 2017 2018 2019 2020 2021 2022 12.2% 11.7% 12.5% 13.3% 12.9% 13.2
Slide 28: Pending update – no material change to format
XYZ Investor Presentation | First Quarter 202228 Pending update – no material change to format