Investor Presentation | Fourth Quarter 2023
LO
5
Most Recent Quarter Highlights
Operating Leverage
and Profitability
Net Interest Income and
Margin
Balance Sheet
Management
Liquidity
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Credit Quality
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Diverse Deposit Base
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Capital Strategies
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Pre-tax pre-provision ROAA and ROAE were 1.70% and 15.32%, respectively, for the quarter ended
December 31, 2023, and 2.21% and 21.59%, respectively, for the same quarter in the prior year
Our efficiency ratio was 58.7% for the quarter ended December 31, 2023, compared to 55.6% and 51.8% for
the quarters ended September 30, 2023 and December 31, 2022, respectively
Net interest margin (FTE) of 3.81%, compared to 3.88% in the trailing quarter, and 4.34% in the quarter
ended December 31, 2022, was influenced by the rising rate environment and balance sheet augmentation
Average yield on earning assets (FTE) of 5.10% was 16 basis points higher than the 4.94% in the trailing
quarter, while the cost of interest-bearing liabilities increased 30 basis points to 2.01% from 1.71%
Total loans grew by an annualized 5.1% while deposits declined by an annualized 8.8%
Loan to deposit ratio has grown to 86.7% at December 31, 2023 compared to 77.4% a year ago
Cash flows generated from investment securities were elevated during the current quarter with the sale of
available-for-sale investment securities resulting in a pre-tax realized loss of $120,000 and an expected earn
back period of less than 9-months
Readily available and unused funding sources, which total approximately $3.9 billion and represent 50% of
total deposits and 166% of total estimated uninsured deposits.
No reliance on brokered deposits or FRB borrowing facilities during the 2023 or 2022
The allowance for credit losses to total loans was 1.79% as of December 31, 2023, compared to 1.73% as of
September 30, 2023, and 1.64% as of December 31, 2022
We remain proactive in our approach to our allowance and the management of our loan portfolio but are not
seeing systemic weakness and overall levels of non-performing loans remain historically low
Overall portfolio credit trends remain below historic averages with loans past due 30+ days to total loans
remaining less than 0.30% at quarter end
Non-interest-bearing deposits comprised 34.8% of total deposits
Deposit betas remain low with a cycle-to-date deposit beta of 19.2%
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Quarterly dividend of $0.30 or $1.20 annually
Approximately 1.2 million shares remain as being authorized for repurchase
Tangible capital ratio of 8.8% at December 31, 2023, an increase from 7.9% at September 30, 2023, due to
both the retention of earnings as well as a reduction in the level of unrealized losses on A-F-S securities
Strength in core earnings is key to self-financed and self-funded growth
All regulatory capital ratios have grown year-over-year
Investor Presentation | Fourth Quarter 2023
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