TriState Capital — Investor Presentation (December 2021)
42 slides from TriState Capital's investor presentation, Dec 2, 2021
Slide 1: TriState Capital Investor Presentation Third Quarter 2021
1 TRISTATE CAPITAL | INVESTOR PRESENTATION TriState Capital Holdings, Inc. (Nasdaq: TSC) Third Quarter Ended September 30, 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 (TTM) ended September 30, 2021, compared to the same TTM period the year prior; and balance sheet data is as of Sept
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 15% 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 Diversification
8 TRISTATE CAPITAL | INVESTOR PRESENTATION 25% 25% 17% 17% 16% Western PA Eastern PA Ohio New Jersey New York 33% 14%22% 9% 3% 19% Finance & Insurance Service Real Estate Manufacturing Information All others 48% 9% 23% 1% 19% Non-owner-occupied Owner-occupied Multifamily/apartment Land Development C
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 322 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% 59% 14% Value Equity Growth Equity Conservative Allocation Fixed Income Large Cap Equity Distribution Channels 74% 7% 9% 10% 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 17% of total revenue1 and over 60% of non-interest income2 Strong investment performance contributed to positive net inflows of $499M for the firs
Slide 15: Non-Interest Income Engine
15 TRISTATE CAPITAL | INVESTOR PRESENTATION Non-Interest Income Engine 1 Non-GAAP financial metric reconciled on slide 38. 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 38. Organic loan growth drives net interest income Uncorrelated, but complementary, revenue streams enable robust organic growth complemented by strategic investment management acquisitions 12%
Slide 17: Operating Leverage
17 TRISTATE CAPITAL | INVESTOR PRESENTATION Superior Revenue/ Employee $708K TSC $10B-$20B Bank Median 2017 2018 2019 2020 3Q21 $100K $200K $300K $400K $500K $600K $700K $800K Operating Leverage Driven by revenue growth, scalable non-branch model and prudent expense management enable continued inves
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 v82% 12 511 12 dedicated & experienced professionals 12 treasury management professionals providing high- touch service across regiona
Slide 19: Treasury Management Deposits
19 TRISTATE CAPITAL | INVESTOR PRESENTATION 20% 18% 13%7% 5% 8% 15% 4% Lending Client - Operating Accounts Payment Processors Real Estate (Investments & Services) Financial Entities (Funds, Custody, Trust) Financial Intermediaries Family Offices & Foundations Bankruptcy C&I Non-Lending Non-Profit Or
Slide 20: Superior Credit Quality
20 TRISTATE CAPITAL | INVESTOR PRESENTATION Commercial Allowance/ Commercial Loans (Excludes Private Bank Loans) 0.67% 0.50% 0.42% 0.95% 0.82% 2017 2018 2019 2020 3Q21 0.0% 0.4% 0.8% 1.2% 1.6% Designed to maintain low annual credit costs relative to peers Superior Credit Quality NPLs / Total Loans $
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 39-98 bps below the year-end
Slide 22: Flexible Balance Sheet
22 TRISTATE CAPITAL | INVESTOR PRESENTATION Floating Rate 94% ~ 87% ~ 8% ~ 5% Indexed to 30-Day LIBOR Indexed to Prime or Other Fixed-rate Flexible Balance Sheet Agile liability pricing ~ 49% ~ 31% ~ 8% ~ 6% ~ 6% Linked to EFF* or other benchmark Rates set at bank discretion Fixed-rate CDs (~5-7 mon
Slide 23: Capital Profile
23 TRISTATE CAPITAL | INVESTOR PRESENTATION Capital Profile 4.72% 9.69% 6.61% 5.39% 11.06% 7.31% 3Q21 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, convertible preferred stock and warrants to funds managed by Stone Point Capital, LLC Raised >$97M in new capital in 2
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 October 21, 2021, shares outstanding as of 9/30/21 2 Collective ownership of officers, directors and their affil
Slide 26: Appendix
26 TRISTATE CAPITAL | INVESTOR PRESENTATION Appendix
Slide 27: Average Share Count
27 TRISTATE CAPITAL | INVESTOR PRESENTATION Average Share Count Actual Actual Actual Estimate Estimate For basic and diluted EPS calculations 1Q21 2Q21 3Q21 4Q21 2021 Diluted earnings per common share $ 0.35 0.41 0.44 Number of Weighted Average Basic Shares Outstanding Basic common shares outstandin
Slide 28: Key Performance Ratios
28 TRISTATE CAPITAL | INVESTOR PRESENTATION Key Performance Ratios As of and For the Three Months Ended As of and For the Years Ended (Dollars in thousands) September 30, June 30, March 31, December 31, September 30, December 31, December 31, 2021 2021 2021 2020 2020 2020 2019 Performance ratios: Re
Slide 29: Income Statement
29 TRISTATE CAPITAL | INVESTOR PRESENTATION Income Statement For the Three Months Ended For the Years Ended (Dollars in thousands, except per share data) September 30, June 30, March 31, December 31, September 30, December 31, December 31, 2021 2021 2021 2020 2020 2020 2019 Income statement data: In
Slide 30: Period-End Balance Sheet
30 TRISTATE CAPITAL | INVESTOR PRESENTATION Period-End Balance Sheet As of (Dollars in thousands) September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020 Period-end balance sheet data: Cash and cash equivalents $ 469,932 $ 529,453 $ 446,484 $ 435,442 $ 608,302 Total inve
Slide 31: Capital Ratios
31 TRISTATE CAPITAL | INVESTOR PRESENTATION Capital Ratios As of September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020 TSCH capital ratios: Tier 1 leverage ratio 6.61 % 6.86 % 7.13 % 7.29 % 6.23 % Common equity tier 1 risk-based capital ratio 9.01 % 9.06 % 9.10 % 8.99
Slide 32: Loan Composition
32 TRISTATE CAPITAL | INVESTOR PRESENTATION Loan Composition (Dollars in thousands) As of September 30, June 30, March 31, December 31, September 30, Loan and Lease Composition 2021 2021 2021 2020 2020 Private banking $ 6,204,009 $ 5,713,562 $ 5,053,621 $ 4,807,800 $ 4,458,767 C&I 1,340,817 1,240,91
Slide 33: Deposit Composition
33 TRISTATE CAPITAL | INVESTOR PRESENTATION Deposit Composition (Dollars in thousands) As of September 30, June 30, March 31, December 31, September 30, Deposit Composition 2021 2021 2021 2020 2020 Noninterest-bearing checking accounts $ 593,342 $ 513,529 $ 496,818 $ 456,426 $ 439,878 Interest-beari
Slide 34: Average Balance Sheet
34 TRISTATE CAPITAL | INVESTOR PRESENTATION Average Balance Sheet Three Months Ended September 30, 2021 June 30, 2021 September 30, 2020 (Dollars in thousands) Average Balance Interest Income (1)/ Expense Average Yield/ Rate Average Balance Interest Income (1)/ Expense Average Yield/ Rate Average Ba
Slide 35: Average Balance Sheet Years Ended December 31, 2020
35 TRISTATE CAPITAL | INVESTOR PRESENTATION Average Balance Sheet Years Ended December 31, 2020 2019 (Dollars in thousands) Average Balance Interest Income (1)/ Expense Average Yield/ Rate Average Balance Interest Income (1)/ Expense Average Yield/ Rate Assets Interest-earning deposits $ 775,276 $ 2
Slide 36: Segments Three Months Ended September 30, 2021
36 TRISTATE CAPITAL | INVESTOR PRESENTATION Segments Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 (Dollars in thousands) Bank Investment Management Parent and Other Consolidated Bank Investment Management Parent and Other Consolidated Income statement data: Interest in
Slide 37: Segments Nine Months Ended September 30, 2021
37 TRISTATE CAPITAL | INVESTOR PRESENTATION Segments Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 (Dollars in thousands) Bank Investment Management Parent and Other Consolidated Bank Investment Management Parent and Other Consolidated Income statement data: Interest inco
Slide 38: Reconciliation of Non-GAAP Measures to GAAP Income Statement Items
38 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 39: Investment Management EBITDA Reconciliation
39 TRISTATE CAPITAL | INVESTOR PRESENTATION For the Three Months Ended For the Years Ended September 30, June 30, March 31, December 31, September 30, December 31, December 31, (Dollars in thousands) 2021 2021 2021 2020 2020 2020 2019 Investment Management EBITDA: Net income $ 1,677 $ 1,196 $ 1,025
Slide 40: Reconciliation to GAAP Balance Sheet Items: Tangible Book Value
40 TRISTATE CAPITAL | INVESTOR PRESENTATION Reconciliation of Non-GAAP Financial Measures to GAAP Balance Sheet Items As of (Dollars in thousands, except per share data) September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020 Tangible book value per common share: Common
Slide 41: Reconciliation: Tangible Common Equity Ratio
41 TRISTATE CAPITAL | INVESTOR PRESENTATION Reconciliation of Non-GAAP Financial Measures to GAAP Balance Sheet Items As of (Dollars in thousands, except per share data) September 30, June 30, March 31, December 31, September 30, 2021 2021 2020 2020 2020 Tangible common equity ratio excluding privat
Slide 42: Reconciliation: Tier 1 Leverage Ratio
42 TRISTATE CAPITAL | INVESTOR PRESENTATION Reconciliation of Non-GAAP Financial Measures to GAAP Balance Sheet Items As of (Dollars in thousands) September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020 Total Tier 1 Capital $ 764,932 $ 743,882 $ 723,939 $ 707,711 $ 589,1
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