Trico Bancshares · NASDAQ:TCBK

Trico Bancshares — Q1 2023 Earnings Presentation

35 slides from Trico Bancshares's earnings presentation, Apr 26, 2023

1. Slide 1: Investor Presentation First Quarter 2023

   Investor Presentation First 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

2. Slide 2: Safe Harbor Statement

   Safe Harbor Statement Investor Presentation | First 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 statem

3. Slide 3: Tri Counties Bank

   Tri Counties Bank Investor Presentation | First Quarter 20233

4. 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

5. Slide 5: Most Recent Quarter Highlights

   Most Recent Quarter Highlights Investor Presentation | First Quarter 20235 Operating Leverage and Profitability • Pre-tax pre-provision ROAA and ROAE were 2.18% and 19.83%, respectively, for the quarter ended March 31, 2023, and 1.69% and 14.70%, respectively, for the same quarter in the prior year

6. Slide 6: Company Overview

   Company Overview Investor Presentation | First Quarter 20236 Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $41.59 Market Cap.: $1.38 Billion Asset Size: $9.84 Billion Loans: $6.42 Billion Deposits: $8.03 Billion Bank Branches: 70 ATMs: 88 Bank ATMs, with access to over 37,000 in network

7. Slide 7: Key Executive Management Themes and Topics

   Key Executive Management Themes and Topics 7 “Top of Mind for Today and Tomorrow” • Deposit Granularity and Liquidity – the Ability to Remain in a Position of Strength While Shifts in Money Supply Occur • Active Monitoring of Loans for Early Warning Signs While Maintaining Sufficient Reserves • Dome

8. 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 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 Qtrly Diluted EPS $0.60 $0.65 $0

9. Slide 9: Shareholder Returns

   8.10% 10.75% 10.49% 7.18% 12.10% 11.67% 13.36% 2017 2018 2019 2020 2021 2022 2023 $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 $0.51 $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

10. Slide 10: Consistent Growth

    Consistent Growth Investor Presentation | First Quarter 202310 Organic Growth and Disciplined Acquisitions  Asset Dollars in Billions. 5 yrs. 10 yrs. 15.5% 14.2% CAGR, Assets Trailing 10 years Trailing 5 quarters

11. Slide 11: Deposits

    11 Investor Presentation | First Quarter 2023 Deposits 11

12. Slide 12: Liability Mix: Strength in Funding

    Liability Mix: Strength in Funding Investor Presentation | First Quarter 202312 Total Deposits = $8.03 billion 93.7% of Funding Liabilities Liability Mix 03/31/2023  Peer group consists of 99 closest peers in terms of asset size, range $4.7-11.5 Billion; source: BankRegData.com  Net Loans includes

13. Slide 13: Deposits: Strength in Cost of Funds

    Deposits: Strength in Cost of Funds Investor Presentation | First Quarter 202313  Balances presented in millions, end of period  Relationship focused market share growth.  Continued best in class total deposit Beta; (less than 4.42% rate rise cycle to date) $419 $399 $376 $345 $328 $324 $327 $298

14. Slide 14: Deposits by Region

    Deposits by Region Investor Presentation | First Quarter 202314  Excludes bank owned operational deposits, public funds, and Direct Banking division. $190 $180 $148 $143 $318 - 100 200 300 400 500 600 700 800 $0-$100k >$100k-$250k >$250k-$500k >$500k-$1 mln >$1 mln Ba y Ar ea $236 $216 $220 $206 $5

15. Slide 15: Deposits: Demand & Savings Deposit Mix

    # 34,897 # 209,845 Total Demand & Savings ($ millions exterior, count interior) Business $3,184 Consumer $4,007 Deposits: Demand & Savings Deposit Mix Investor Presentation | First Quarter 202315 [1] Excludes time deposits, bank owned operational deposits and public funds. 479 497 481 472 1,255 1,72

16. Slide 16: Liquidity

    Liquidity Investor Presentation | First Quarter 202316 [1] $ millions, as of 3/31/2023, cash based upon total held at or in transit with FRB [2] Based upon estimated uninsured deposits reported in Call Report schedule RC-O includes demand and time deposits [3] Peer group consists of closest 99 peers

17. Slide 17: Loans and Credit Quality

    Investor Presentation | First Quarter 2023 Loans and Credit Quality 1717

18. Slide 18: Loan Portfolio and Yield

    Loan Portfolio and Yield Investor Presentation | First 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

19. Slide 19: Gross Production vs. Payoff

    Gross Production vs. Payoff Investor Presentation | First 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 ($795

20. Slide 20: Diversified Loan Portfolio

    Diversified Loan Portfolio Investor Presentation | First Quarter 202320  Dollars in millions, Net Book Value at period end, excludes LHFS;  Auto & other includes Leases; Commercial & Industrial includes six Municipality Loans for $21.3 mln. CRE Non- Owner Occupied 34% CRE-Owner Occupied 15% Multif

21. Slide 21: Office RE Collateral

    Office RE Collateral Investor Presentation | First Quarter 202321 California Office Secured by Region Regions by Collateral Code Regions by Occupancy Type  Graph circle size represent total loan Commitments in the Region  CRE loans secured by office collateral represent 9.6% of total Loan Portfoli

22. Slide 22: CRE Collateral Values

    69% 51% 79% 63% 88% 72% 39% 49% 29% 46% 21% 37% 12% 24% 60% 44% 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

23. Slide 23: Unfunded Loan Commitments

    $2,183 $1,914 $952 $845 $373 $360 $549 $460 $979 $860 $806 $715 $307 $229 $327 $325 $60 $52 $162 $158 $55 $46 $646 $558 $628 $557 $60 $36 $288 $307 $263 $121 $9 $8 1Q-2023 1Q-2022 1Q-2023 1Q-2022 1Q-2023 1Q-2022 1Q-2023 1Q-2022 1Q-2023 1Q-2022 1Q-2023 1Q-2022 1Q-2023 1Q-2022 1Q-2023 1Q-2022 1Q-2023

24. Slide 24: C&I Utilization

    C&I Utilization Investor Presentation | First Quarter 202324  Excludes PPP loans; Outstanding Principal excludes unearned fees and discounts/premiums ($ millions)  C&I utilization is expected to grow incrementally through the remainder of 2023.  Paired with treasury management services, C&I custo

25. Slide 25: Loan Yield Composition

    Fixed 44% Adjustable 43% Floating 13% Loan Yield Composition Investor Presentation | First Quarter 202325  Dollars in millions, excludes PPP as well as unearned fees and accretion/amortization therein  Wtd Avg Rate (weighted average rate) as of 03/31/2023 and based upon outstanding principal; Next

26. Slide 26: Allowance for Credit Losses

    Allowance for Credit Losses Investor Presentation | First Quarter 202326 Drivers of Change under CECL  Loan decline of $28 million Q1  Continued low loss experience offset by increases in factors for Unemployment Outlook and US Policy Uncertainty  Gross charge-offs $1.758 million  Gross recoveri

27. Slide 27: Allowance for Credit Losses: Allocation by Segment

    Allowance for Credit Losses Investor Presentation | First Quarter 202327 Allocation of Allowance by Segment  Municipal loans included in Commercial and industrial segment within the presented table

28. Slide 28: Risk Grade Migration

    Risk Grade Migration Investor Presentation | First Quarter 202328  Zero balance in Doubtful and Loss 87.8%89.0%87.8%87.6%89.6%87.2% 9.2%8.0%9.7%9.5%7.8%9.3% 2.0%2.0%1.8%2.1%1.6%2.5% 1.0%1.1%0.8%0.8%1.1%1.0% 1Q-20234Q-20223Q-20222Q-20221Q-20224Q-2021 Pass Watch Special Mention Substandard

29. Slide 29: Asset Quality

    Asset Quality Investor Presentation | First Quarter 202329  Peer group consists of 99 closest peers in terms of asset size, range $6.0-13.7 Billion, source: BankRegData.com  NPA and NPL ratios displayed are net of guarantees Coverage Ratio: Allowance as % of Non-Performing Loans  Net charge offs

30. Slide 30: Financials

    Financials 3030 Investor Presentation | First Quarter 2023

31. Slide 31: 4Q22 to 1Q23 Net Interest Income & NIM Walk

    4Q22 to1Q23 Reported Net Interest Income (NII) & NIM Walk NII $ in millions, NIM change in bps, all full taxable equivalent (FTE) NII NIM 4Q22 $99.3 4.34% Market rate changes - earning assets 3.1 11 Loan balances / mix 0.7 3 Securities portfolio balances / mix (0.3) (1) Loan deferred fees (0.7) (3)

32. Slide 32: 1Q22 to 1Q23 Net Interest Income & NIM Walk

    1Q22 to1Q23 Reported Net Interest Income (NII) & NIM Walk NII $ in millions, NIM change in bps, all full taxable equivalent (FTE) NII NIM 1Q22 $68.2 3.39% Market rate changes - earning assets 19.0 61 Loan balances / mix 15.3 49 Securities portfolio balances / mix 0.8 2 Loan deferred fees (1.0) (3) I

33. Slide 33: Current Operating Metrics

    0.89% 1.24% 1.43% 0.91% 1.43% 1.28% 1.47% 2017 2018 2019 2020 2021 2022 2023 1.70% 1.73% 1.94% 1.83% 1.91% 1.97% 2.18% 2017 2018 2019 2020 2021 2022 2023 65.4% 63.7% 59.7% 58.4% 53.2% 53.0% 50.3% 2017 2018 2019 2020 2021 2022 2023 4.22% 4.30% 4.47% 3.96% 3.58% 3.88% 4.21% 2017 2018 2019 2020 2021 20

34. Slide 34: Well Capitalized

    9.3% 9.5% 10.6% 9.3% 9.2% 7.6% 8.1% 2017 2018 2019 2020 2021 2022 2023 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 14.8% 14.1% 14.4% 15.1% 15.2% 15.4% 14.2% 2016 2017 2018 2019 2020 2021 202

35. Slide 35: Pending update – no material change to format

    XYZ Investor Presentation | First Quarter 202335 Pending update – no material change to format

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