TriState Capital — Investor Presentation (March 2022)
40 slides from TriState Capital's investor presentation, Mar 8, 2022
Slide 1: Fourth Quarter Ended December 31, 2021 Investor Presentation
1 TRISTATE CAPITAL | INVESTOR PRESENTATION TriState Capital Holdings, Inc. (Nasdaq: TSC) Fourth Quarter Ended December 31, 2021 Investor Presentation
Slide 2: Important Information
2 TRISTATE CAPITAL | INVESTOR PRESENTATION Important Information Financial information and data: Unless noted otherwise herein, income statement data is for the trailing twelve-months ended December 31, 2021, compared to the same TTM period the year prior; and balance sheet data is as of December 31
Slide 3: Raymond James to Acquire TriState Capital
3 TRISTATE CAPITAL | INVESTOR PRESENTATION The strategic deal, which was made to benefit both clients and shareholders, is expected to close in 2022 On October 20, 2021, Raymond James Financial, Inc. (NYSE: RJF) and TriState Capital (Nasdaq: TSC) announced a definitive agreement under which Raymond
Slide 4: Why TSC
4 TRISTATE CAPITAL | INVESTOR PRESENTATION Why TSC Branchless, scalable and capital efficient model Premier private banking, commercial banking and niche investment management products and services to sophisticated corporate, institutional and high-net-worth clients Truly exceptional asset quality U
Slide 5: Three Differentiated Businesses Drive Growth
5 TRISTATE CAPITAL | INVESTOR PRESENTATION Three Differentiated Businesses Drive Growth BUSINESS COMMERCIAL BANKING PRIVATE BANKING INVESTMENT MANAGEMENT MARKETPLACE Regional (primarily PA, OH, NJ, NY) National National SALES Regional loan offices National and inside sales National and inside sales
Slide 6: Sophisticated Client Solutions
6 TRISTATE CAPITAL | INVESTOR PRESENTATION Sophisticated Client Solutions Businesses that are highly scalable with efficient use of capital for strong risk adjusted returns Model provides diversity of revenue and high credit quality reduces risk profile Three premier platforms that complement one an
Slide 7: Middle Market Commercial Lending
7 TRISTATE CAPITAL | INVESTOR PRESENTATION Middle Market Commercial Lending Delivering 13% organic commercial loan growth YOY by sourcing and serving local clients through Mid-Atlantic representative offices 2021 growth reflects true, organic demand, and no PPP lending Bi lli on s Commercial Loans $
Slide 8: Middle Market Commercial Lending Composition
8 TRISTATE CAPITAL | INVESTOR PRESENTATION 25% 26%16% 17% 16% Western PA Eastern PA Ohio New Jersey New York 38% 13% 20% 8% 3% 5% 14% Finance and Insurance Service Real estate Manufacturing Information Transportation All others 49% 9% 24% 1% 17% Non-owner-occupied Owner-occupied Multifamily/apartmen
Slide 9: Private banking loans collateralized by marketable securities
9 TRISTATE CAPITAL | INVESTOR PRESENTATION Private banking loans collateralized by marketable securities • Fastest-growing loan product • Collateral monitored and priced daily through premier relationships by TSC experts and tech • Primarily marketable equity and fixed-income securities collateral •
Slide 10: Fastest Growing Portfolio: Securities-based Lending
10 TRISTATE CAPITAL | INVESTOR PRESENTATION Fastest Growing Portfolio Median LTV <30% Securities-based Lending Marketable securities collateral consist of liquid and primarily well-diversified portfolios Private Banking Loans over-collateralized by marketable securities or cash value life insurance
Slide 11: Private Banking Loans
11 TRISTATE CAPITAL | INVESTOR PRESENTATION Private Banking Loans TSC Network Advisors Unrivaled network of independent financial advisors, trust officers and family office executives seeking to add value for their clients TSC Network Firms Strong executive- and board-level relationships with broker
Slide 12: Independent Provider of Advisor Solutions
12 TRISTATE CAPITAL | INVESTOR PRESENTATION FINANCIAL ADVISORS & their clients Independent Provider of Advisor Solutions Serving those who serve high net worth individuals and families Through our referral network of 351 firms, TSC provides holistic solutions for 60,000+ advisors and, in turn, their
Slide 13: Chartwell Investment Partners
13 TRISTATE CAPITAL | INVESTOR PRESENTATION Investment Strategies 20% 5% 58% 14% Value Equity Growth Equity Conservative Allocation Fixed Income Large Cap Equity Distribution Channels 74% 7% 8% 11% Institutional Subadvisory Mutual Funds Advisory Services/ Managed Accounts Chartwell Investment Partne
Slide 14: Investment Performance
14 TRISTATE CAPITAL | INVESTOR PRESENTATION Investment Performance Investment management fees provide significant income diversification, generating over 15% of total revenue1 and over 60% of non-interest income2 Strong investment performance contributed to positive net inflows of $521M in 2021 and
Slide 15: Non-Interest Income Engine
15 TRISTATE CAPITAL | INVESTOR PRESENTATION Non-Interest Income Engine 1 Non-GAAP financial metric reconciled on slide 36. 2 Non-interest income excludes net gains (losses) on the sale of debt securities. Chartwell contributes significant investment management fee income Back-to-back, loan-level int
Slide 16: Revenue Growth
16 TRISTATE CAPITAL | INVESTOR PRESENTATION Revenue Growth 1 Non-GAAP financial metric reconciled on slide 36. 2 5 year CAGR Organic loan growth drives net interest income Uncorrelated, but complementary, revenue streams enable robust organic growth complemented by strategic investment management ac
Slide 17: Operating Leverage
17 TRISTATE CAPITAL | INVESTOR PRESENTATION Operating Leverage Driven by revenue growth, scalable non-branch model and prudent expense management enable continued investment in growth 2.00% all-in interest & non- interest expense / average deposits TTM, compared to 2.60% for the median peer1 1.30% n
Slide 18: Treasury Management a Strategic Priority
18 TRISTATE CAPITAL | INVESTOR PRESENTATION Investments in best-in- class talent and technology beginning in 2016 are paying off for our clients and our business v v v96% 12 526 12 dedicated & experienced professionals 12 treasury management professionals providing high- touch service across regiona
Slide 19: Treasury Management Deposits
19 TRISTATE CAPITAL | INVESTOR PRESENTATION 15% 17% 15% 16% 14% 3% 8% 4% 4% 3% 1% Lending Client - Operating Accounts Payment Processors Bankruptcy Real Estate (Investments & Services) Financial Entities (Funds, Custody, Trust) Financial Intermediaries Family Offices & Foundations C&I Non-Lending No
Slide 20: Superior Credit Quality
20 TRISTATE CAPITAL | INVESTOR PRESENTATION NCOs / Average Loans 0.39% 0.47% 0.47% 0.45% 0.28% 0.10% 0.02% (0.03)% (0.01)% 0.07% 2017 2018 2019 2020 2021 0.0% 0.2% 0.4% 0.6% 0.8% Commercial Allowance/ Commercial Loans (Excludes Private Bank Loans) 0.67% 0.50% 0.42% 0.95% 0.69% 2017 2018 2019 2020 20
Slide 21: Reserve Expectations
21 TRISTATE CAPITAL | INVESTOR PRESENTATION Reserve Expectations Reflects TSC's focus on high-quality and seasoned commercial borrowers, proactive approach to managing credit risk, and majority of portfolio in private banking loans collateralized by marketable securities 50-105 bps below the year-en
Slide 22: Flexible Balance Sheet
22 TRISTATE CAPITAL | INVESTOR PRESENTATION Floating Rate 95% ~ 85% ~ 10% ~ 5% Indexed to 30-Day LIBOR Indexed to Prime or Other Fixed-rate Flexible Balance Sheet Agile liability pricing ~ 49% ~ 31% ~ 7% ~ 6% ~ 7% Linked to EFF* or other benchmark Rates set at bank discretion Fixed-rate CDs (~5-7 mo
Slide 23: Capital Profile
23 TRISTATE CAPITAL | INVESTOR PRESENTATION Capital Profile 4.58% 9.79% 6.36% 5.21% 11.14% 7.01% 4Q21 Holding Co. Capital Ratios Pro-forma Series C and warrant conversion Tangible common equity ("TCE") to tangible assets TCE ratio ex. private banking loans Tier 1 leverage ratio 0% 5% 10% 15% Strong
Slide 24: Capital Strength Supports High-Growth Strategy
24 TRISTATE CAPITAL | INVESTOR PRESENTATION Capital Strength Supports High-Growth Strategy Raised >$300M in past two years Raised $105M in new capital in 4Q20, issuing common stock, preferred stock and warrants to funds managed by Stone Point Capital, LLC Raised >$97M in new capital in 2Q20 through
Slide 25: Investment Profile
25 TRISTATE CAPITAL | INVESTOR PRESENTATION Investment Profile TSC is well positioned to produce robust earnings as we expand each of our businesses in 2021 and beyond 1 Market data as of January 27, 2022. shares outstanding as of 12/31/21 2 Collective ownership of officers, directors and their affi
Slide 26: Appendix
26 TRISTATE CAPITAL | INVESTOR PRESENTATION Appendix
Slide 27: Average Share Count Estimates
27 TRISTATE CAPITAL | INVESTOR PRESENTATION Average Share Count Estimates (1) Warrants issued on December 30, 2020 granting the right to purchase, subject to certain adjustments, an aggregate of 922,438 shares of TSC common stock at an exercise price of $17.50 per share are antidilutive compared to
Slide 28: Key Performance Ratios
28 TRISTATE CAPITAL | INVESTOR PRESENTATION Key Performance Ratios (1) Net income divided by total average assets. (2) Net income available to common shareholders divided by average common equity. As of and For the Years Ended (Dollars in thousands) December 31, December 31, December 31, December 31
Slide 29: Income Statement
29 TRISTATE CAPITAL | INVESTOR PRESENTATION Income Statement For the Years Ended (Dollars in thousands, except per share data) December 31, December 31, December 31, December 31, December 31, 2021 2020 2019 2018 2017 Income statement data: Interest income $ 231,297 $ 217,095 $ 262,447 $ 199,786 $ 13
Slide 30: Period-End Balance Sheet
30 TRISTATE CAPITAL | INVESTOR PRESENTATION Period-End Balance Sheet As of (Dollars in thousands) December 31, December 31, December 31, December 31, December 31, 2021 2020 2019 2018 2017 Period-end balance sheet data: Cash and cash equivalents $ 452,016 $ 435,442 $ 403,855 $ 189,985 $ 156,153 Total
Slide 31: Capital Ratios
31 TRISTATE CAPITAL | INVESTOR PRESENTATION Capital Ratios As of December 31, December 31, December 31, December 31, December 31, 2021 2020 2019 2018 2017 TSCH capital ratios: Tier 1 leverage ratio 6.36 % 7.29 % 7.54 % 7.28 % 7.25 % Common equity tier 1 risk-based capital ratio 8.96 % 8.99 % 9.32 %
Slide 32: Loan Composition
32 TRISTATE CAPITAL | INVESTOR PRESENTATION Loan Composition (Dollars in thousands) As of Loan and Lease Composition December 31, December 31, December 31, December 31, December 31, 2021 2020 2019 2018 2017 Private banking $ 6,886,498 $ 4,807,800 $ 3,695,402 $ 2,869,543 $ 2,265,737 C&I 1,513,423 1,2
Slide 33: Deposit Composition
33 TRISTATE CAPITAL | INVESTOR PRESENTATION Deposit Composition (Dollars in thousands) As of December 31, December 31, December 31, December 31, December 31, Deposit Composition 2021 2020 2019 2018 2017 Noninterest-bearing checking accounts $ 776,256 $ 456,426 $ 356,102 $ 258,268 $ 248,092 Interest-
Slide 34: Average Balance Sheet
34 TRISTATE CAPITAL | INVESTOR PRESENTATION Average Balance Sheet Years Ended December 31, 2021 2020 2019 (Dollars in thousands) Average Balance Interest Income (1)/ Expense Average Yield/ Rate Average Balance Interest Income (1)/ Expense Average Yield/ Rate Average Balance Interest Income (1)/ Expe
Slide 35: Segments
35 TRISTATE CAPITAL | INVESTOR PRESENTATION Segments Year Ended December 31, 2021 Year Ended December 31, 2020 (Dollars in thousands) Bank Investment Management Parent and Other Consolidated Bank Investment Management Parent and Other Consolidated Income statement data: Interest income $ 231,297 $ —
Slide 36: Reconciliation of Non-GAAP Financial Measures to GAAP Income Statement Items
36 TRISTATE CAPITAL | INVESTOR PRESENTATION Reconciliation of Non-GAAP Financial Measures to GAAP Income Statement Items Revenue, a non-GAAP financial metric that TriState Capital has consistently utilized to provide a greater understanding of its significant fee-generating businesses, is the sum of
Slide 37: Investment Management EBITDA Reconciliation
37 TRISTATE CAPITAL | INVESTOR PRESENTATION For the Years Ended December 31, December 31, December 31, December 31, December 31, (Dollars in thousands) 2021 2020 2019 2018 2017 Investment Management EBITDA: Net income $ 3,786 $ 2,798 $ 2,433 $ 3,851 $ 4,551 Interest expense — — — — — Income tax expe
Slide 38: Reconciliation of Non-GAAP Financial Measures to GAAP Balance Sheet Items
38 TRISTATE CAPITAL | INVESTOR PRESENTATION Reconciliation of Non-GAAP Financial Measures to GAAP Balance Sheet Items As of (Dollars in thousands, except per share data) December 31, December 31, December 31, December 31, December 31, 2021 2020 2019 2018 2017 Tangible book value per common share: Co
Slide 39: Reconciliation of Non-GAAP Financial Measures to GAAP Balance Sheet Items
39 TRISTATE CAPITAL | INVESTOR PRESENTATION Reconciliation of Non-GAAP Financial Measures to GAAP Balance Sheet Items As of (Dollars in thousands, except per share data) December 31, December 31, December 31, December 31, December 31, 2021 2020 2019 2018 2017 Tangible common equity ratio excluding p
Slide 40: Reconciliation of Non-GAAP Financial Measures to GAAP Balance Sheet Items
40 TRISTATE CAPITAL | INVESTOR PRESENTATION Reconciliation of Non-GAAP Financial Measures to GAAP Balance Sheet Items As of (Dollars in thousands) December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 Total Tier 1 Capital $ 788,910 $ 764,932 $ 743,882 $ 723,939 $ 707,71
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