Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Raymond James US Bank Conference 2018
44 slides from Trico Bancshares's conference presentation, Sep 5, 2018
Slide 1: Raymond James US Bank Conference
Raymond James US Bank Conference Richard P. Smith – President & CEO John S. Fleshood – Executive Vice President & COO September 5, 2018 Exhibit 99.1
Slide 2: Safe harbor statement
Safe harbor statement Raymond James US Bank Conference September 2018 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
agenda Company Overview Recent Activities & Focus Key Revenue Drivers Challenges & Opportunities Financials Questions Raymond James US Bank Conference September 2018
Slide 4: Company overview
COMPANY overview* Asset Size:$6.1 Billion Location:Chico, CA Founded:1975 Deposits:$5.1 Billion Loans (net):$4.0 Billion Bank Branches:79 ATMs:99 _____________________________________________________________________________ * Data includes FNB Bancorp acquisition completed on July 6, 2018 Raymond Ja
Slide 5: Company overview
COMPANY overview* Nasdaq:TCBK Stock Price:$39.09 Market Capitalization:$1.19 billion Price to Book stated:1.8x Price to TBVPS2.0x Rank (Total Assets) among CA Publicly Traded Banks:12 (Source: SNL Financial) Raymond James US Bank Conference September 2018 ____________________________________________
Slide 6: Executive Team
Executive Team Rick Smith President & CEO TriCo since 1993 John Fleshood EVP Chief Operating Officer TriCo since 2016 Dan Bailey EVP Chief Retail Banking Officer TriCo since 2007 Craig Carney EVP Chief Credit Officer TriCo since 1996 Peter Wiese EVP Chief Financial Officer TriCo since 2018 Richard O
Slide 7: 2018 Accomplishments
2018 ACCOMPLISHMENTS Consistently strong growth in corporate treasury management service charges and deposit balances Technology projects Corporate treasury management products Support for consumer, mortgage, and small business lending products Continuing to leverage 2016 core conversion investment
Slide 8: Positioned for today, prepared for the future
Positioned for today, prepared for the future Strong and growing bank capital Competitive product set to compete with banks both large and small - #1 Community Bank alternative in Northern California and on the San Francisco Peninsula Superior reputation versus large bank competitors Continue to see
Slide 9: Strong focus on risk management and new regulatory realities
Strong focus on risk management and new regulatory realities Enterprise Risk Strong Focus on CRA & Compliance HMDA Reporting Fair Lending Experienced project teams, well prepared for continued growth through acquisition Positioned for today, prepared for the future continued Raymond James US Bank Co
Slide 10: What is long term success?
What is long term success? Rewarding our shareholders A winning culture with a motivated and talented work force (good people) Significant and growing market share Low cost core deposit base Strong credit culture Diversified revenue sources Efficient operations Strong risk management practices Raymo
Slide 11: Key drivers of bank revenues
Key drivers of bank revenues Deposits & Margin Average Cost of Deposits of 0.12% as of 06/30/2018 Net Interest Margin in Q2 2018 was 4.14% Commercial Loans Commercial Real Estate Diverse portfolio of property types and geographies Commercial & Industry Lines and Loans & Leases Agricultural Loans Ass
Slide 12: Key drivers of bank revenues continued
Key drivers of bank revenues continued Consumer Loans – Home Equity Lines/Loans Rising rates a positive for growth – Small Business Growth Opportunities – Wealth Management – Bank Managed Program Raymond James as Broker-Dealer – Mortgage Banking – Merchant Card Processing Fee Opportunities Raymond J
Slide 13: Deposit structure
Deposit structure Data as of 06.30.2018 Raymond James US Bank Conference September 2018
Slide 14: Total ending deposits
Total ending deposits ($000’s) *Data as of 06.30.2018 Raymond James US Bank Conference September 2018
Slide 15: Market share of all branches sorted by zip code
Market share of all branches sorted by zip code Rank Institution Name State (Hdqtrd) Charter Deposits ($000) Market Share 1 U.S. Bank National Association OH Federal 9,893,012 21.2% 2 Wells Fargo & Company SD Federal 8,782,186 18.8% 3 Bank of America, National Association NC Federal 6,017,267 12.9%
Slide 16: Non-interest income
Non-interest income Consistently Represents Approximately 20%+ of total revenues Wealth Management – recurring fee AUM model Deposit and Card products - Higher revenues from service charges and interchange income Corporate Treasury Management product fees continue to increase Raymond James US Bank C
Slide 17: Consumer loans
Consumer loans Increased demand for consumer loans Home equity values continue to increase Borrowers using refinance of 1st mortgage to pay down debt Low rate environment led to historically high refi activity $43MM in Q2 2018 HELOC volume resulted in $1.0MM increase in outstandings This is compared
Slide 18: Home equity loans outstanding
Home equity loans outstanding ($000’s) Data as of 06.30.2018 Raymond James US Bank Conference September 2018
Slide 19: Loan portfolio by type
Loan portfolio by type Loan Segments (000’s) CRE – Non-Owner Occupied $1,184,947 CRE – Owner Occupied $444,050 Residential 1-4 $384,692 Home Equity $327,422 CRE – Multifamily $283,911 Commercial & Industrial $212,566 Construction $156,729 Farmland $103,440 Agri. Production $25,053 Consumer – Other $
Slide 20: Commercial banking
Commercial banking Target loans of $2,000,000 to $15,000,000 Personalized banking Assigned Relationship Managers Assigned Cash Management Officers In-market lending Competition is as fierce and diverse as it has ever been Raymond James US Bank Conference September 2018
Slide 21: Commercial banking continued
Commercial banking continued Agricultural lending Drought risk has subsided Commodity prices have stabilized Loans <$1,000,000 served through alternate channel Business Relationship Managers Credit scoring combined with traditional underwriting SBA 7(a) program now offered Raymond James US Bank Conf
Slide 22: Total loans net of unamortized deferred loan fees and discounts
Total loans net of unamortized deferred loan fees and discounts ($000’s) Data as of 06.30.2018 15.1% CAGR Raymond James US Bank Conference September 2018
Slide 23: Growth opportunities – TCBK history
Growth opportunities – TCBK HISTORY (000’s) Raymond James US Bank Conference September 2018
Slide 24: What keeps us up at night?
Deposit Betas Ability to Increase Loan Yields Interest Rate Risk Aggressive Competitors Compliance Regulations The Cost of Compliance with New Regulations Dysfunction in Washington What keeps us up at night? Raymond James US Bank Conference September 2018
Slide 25: Financials
Financials Raymond James US Bank Conference September 2018
Slide 26: Total assets
Total assets ($000’s) Data as of 06.30.2018 13.6% CAGR Raymond James US Bank Conference September 2018
Slide 27: Capital ratios
Capital ratios ($000’s) Data as of 06.30.2018 Raymond James US Bank Conference September 2018
Slide 28: Net income
Net income ($000’s) Data as of 06.30.2018 Raymond James US Bank Conference September 2018
Slide 29: Net interest margin
Net interest margin Data as of 06.30.2018 Raymond James US Bank Conference September 2018
Slide 30: Non-interest income
Non-interest income ($000’s) Data as of 06.30.2018 Raymond James US Bank Conference September 2018
Slide 31: Efficiency ratio (fully taxable equivalent)
Efficiency ratio (fully taxable equivalent) Data as of 06.30.2018 Raymond James US Bank Conference September 2018
Slide 32: Diluted earnings per share
Diluted earnings per share Data as of 06.30.2018 Raymond James US Bank Conference September 2018
Slide 33: Dividends paid
Data as of 06.30.2018 DividendS PAID Raymond James US Bank Conference September 2018 12.0% CAGR
Slide 34: Non-performing assets to total assets
non-performing assets to total assets Data as of 06.30.2018 Raymond James US Bank Conference September 2018
Slide 35: Allowance for loan losses to total loans
Allowance for loan losses to total loans Data as of 06.30.2018 Raymond James US Bank Conference September 2018
Slide 36: Annualized net charge-offs to average loans
Annualized net charge-offs to average loans Data as of 06.30.2018 *0.08% related to ASC 310-30 PCI loan adjustment Raymond James US Bank Conference September 2018
Slide 37: Return on average assets
Data as of 06.30.2018 Return on average assets Raymond James US Bank Conference September 2018
Slide 38: Return on average shareholder's equity
Data as of 06.30.2018 Return on average shareholder’s equity Raymond James US Bank Conference September 2018
Slide 39: Acquisition of FNB Bancorp
Acquisition of FNB Bancorp Announced December 11, 2017 Keefe, Bruyette & Woods Community Bank Investor Conference
Slide 40: Premier Norcal Community bank
Premier Norcal Community bank TCBK has an extensive presence throughout Northern California and the Central Valley with 67 branches FNBG’s twelve branches across the SF Peninsula provide scale in a key Northern California market FNBG adds an established presence with a 50+ year history serving the S
Slide 41: Market position in Norcal
Market position in Norcal FNBG (SF Peninsula) FNBG and TriCo will create the largest Northern California-based community bank at over $6bn in assets TriCo currently has a dominant market share in several Northern California markets #1 ranked deposit market share in Chico and Redding MSAs (~25% of to
Slide 42: The Bay Area economy
The Bay Area’s $780 billion economy would rank 5th among all US states and 18th globally among all countries The Bay Area economy grew 5.2% in 2016, ~3x faster than the US rate At 3.3% unemployment the area is significantly below national averages The Bay Area is the #1 region in the U.S. for ventur
Slide 43: Pro forma loan and deposit mix
Source: SNL Financial. TCBK and FNBG information for the quarter ended 9/30/2017. (1) Pro forma does not include purchase accounting or merger related adjustments. Pro forma loan & Deposit Mix Loan Portfolio Highly Similar Lending Focus, Shared Credit Culture Deposit Base Maintains An Attractive Low
Slide 44: TriCo Bancshares is committed to
TriCo Bancshares is committed to: Improving the financial success and well-being of our shareholders, customers, communities and employees. Raymond James US Bank Conference July / August 2018
TriCo Bancshares — Raymond James US Bank Conference 2018 on 6ix