Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — KBW Winter Financial Services Symposium 2020
32 slides from Trico Bancshares's conference presentation, Feb 13, 2020
Slide 1: KBW Winter Financial Services Symposium
KBW Winter Financial Services Symposium Boca Raton, Florida February 2020 Richard P. Smith – President & Chief Executive Officer John S. Fleshood – EVP & Chief Operating Officer
Slide 2: Safe Harbor Statement
KBW Winter Financial Services Symposium SAFE HARBOR STATEMENT 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 statements
Slide 3: Agenda
KBW Winter Financial Services Symposium AGENDA • Most Recent Quarter Recap • Company Overview • Lending Overview • Deposit Overview • Financials 3 February 2020
Slide 4: Most Recent Quarter Highlights
KBW Winter Financial Services Symposium MOST RECENT QUARTER HIGHLIGHTS • Q4 2019 return on average assets of 1.40% versus 1.46% in Q4 2018 and 1.44% in the linked Earnings Consistency quarter. • Average yield on earning assets of 4.65% in Q4 2019 compared to 4.78% in Q4 2018 and 4.72% in the linked
Slide 5: Company Overview
KBW Winter Financial Services Symposium COMPANY OVERVIEW 5 February 2020
Slide 6: Company Overview
KBW Winter Financial Services Symposium COMPANY OVERVIEW Asset Size: $6.5 Billion Founded: 1975 Deposits: $5.4 Billion Loans (net): $4.3 Billion Bank Branches: 76 ATMs: 99 Market Area: TriCo currently serves 29 counties throughout Northern and Central California. These counties represent over 30% of
Slide 7: Company Overview
KBW Winter Financial Services Symposium COMPANY OVERVIEW Nasdaq: TCBK Stock Price*: $37.79 Market Capitalization: $1.15 billion Price to Book stated: 1.3x Price to TBVPS 1.7x Rank (Total Assets) among CA Publicly Traded Banks: 12 (Source: SNL Financial) ______________________________________________
Slide 8: Executive Team
KBW Winter Financial Services Symposium EXECUTIVE TEAM Rick Smith John Fleshood Peter Wiese President & CEO EVP Chief Operating Officer EVP Chief Financial Officer TriCo since 1993 TriCo since 2016 TriCo since 2018 Craig Carney Dan Bailey EVP Chief Credit Officer EVP Chief Retail Banking Officer Tri
Slide 9: Consistent Earnings Track Record
KBW Winter Financial Services Symposium CONSISTENT EARNINGS TRACK RECORD $0.80 $24 $22 $0.70 $20 $0.60 $18 $16 $0.50 $14 $0.40 $12 $0.30 $10 (Diluted) E.P.S Earnings (in (in Millions) Earnings $8 $0.20 $6 $0.10 $4 $2 $0.00 Q3 Q4 Q1 Q2 Q3 Q4 * Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2017 2017 2017 2017 201
Slide 10: Diluted Earnings Per Share
KBW Winter Financial Services Symposium DILUTED EARNINGS PER SHARE $3.00 $0.75 $2.50 $0.76 $2.00 $0.76 $0.50 $0.54 $0.13 $1.50 $0.53 $0.25 $0.51 $0.55 $0.53 $0.75 $1.00 $0.50 $0.65 $0.58 $0.30 $0.49 $0.41 $0.50 $0.60 $0.74 $0.45 $0.36 $0.46 $0.52 $- 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 10 Febru
Slide 11: Consistent Organic Growth and Disciplined Acquirer
KBW Winter Financial Services Symposium CONSISTENT ORGANIC GROWTH AND DISCIPLINED ACQUIRER CAGR 5 yrs. 10.6% 10 yrs.11.6% *Total Assets for years ending 2002-2019. 11 February 2020
Slide 12: What Keeps Us Up at Night?
KBW Winter Financial Services Symposium WHAT KEEPS US UP AT NIGHT? • Aggressive and Irrational Competitors • Duration of Lower Rate Environment • The Cost of Regulatory Compliance • Technology Costs and Limited Vendor Competition • Domestic Policy and International Relationships 12 February 2020
Slide 13: Loans
KBW Winter Financial Services Symposium LOANS 13 February 2020
Slide 14: Consistent Loan Growth
KBW Winter Financial Services Symposium CONSISTENT LOAN GROWTH $5,000,000 $4,500,000 $4,000,000 6.06% $3,500,000 5.62% ) 5.50% 5.48% 5.46% $3,000,000 5.24% 5.33% 5.52% 5.37% $2,500,000 5.16% $2,000,000 Total Loans Loans (000’s Total $1,500,000 (%) Loans Yield $1,000,000 $500,000 $0 2013 2014 2015 20
Slide 15: Loan Portfolio Mix
KBW Winter Financial Services Symposium LOAN PORTFOLIO MIX: Consumer Loans, $82,657, 2% CRE - Non-Owner 1st Lien Closed-End Occupied, $1,609,556, Loans, $538,094, 13% Argri Production, 39% $32,663, 1% Farmland, $145,067, 3% Commercial & Industrial, $251,074, 6% CRE - Owner Occupied, Total Constructi
Slide 16: Diversified CRE & Construction Portfolio
KBW Winter Financial Services Symposium DIVERSIFIED CRE & CONSTRUCTION PORTFOLIO Gas Station /Convenience, $146,303, 5% Restaurant, Self Storage, $99,615, 3% Loan Size $48,784, 2% Property Type Avg. Loan Amount SFR (1-4/Condo) $54,693 Hospitality $2,679,000 Hospitality 2% $240,840 Light Industrial S
Slide 17: Conservative Construction and CRE Underwriting Culture – LTV Distribution
KBW Winter Financial Services Symposium CONSERVATIVE CONSTRUCTION AND CRE UNDERWRITING CULTURE – LTV DISTRIBUTION 35% 30% 29% Loan to Value Avg. Loan Amount 25% 23% <50% $852,631 20% 51%-60% $660,145 18% 61%-65% $516,384 15% 15% 66%-70% $431,068 % of Portfolio 11% 71%-75% $321.485 10% 76%-80% $86,10
Slide 18: Diversified Geography – CRE & Construction
KBW Winter Financial Services Symposium DIVERSIFIED GEOGRAPHY – CRE & CONSTRUCTION Outstanding Balance Commitments Average Loan Oustanding County Principal City % of CRE-Related (Millions) (Millions) (Millions) SACRAMENTO Sacramento $296,604 $349,552 10% $1,241 SAN FRANCISCO San Francisco $251,611 $
Slide 19: Non-Performing Assets & Net Charge Offs
KBW Winter Financial Services Symposium NON-PERFORMING ASSETS & NET CHARGE OFFS 2.50% 0.25% 0.20% 2.00% 0.15% 0.10% 1.50% 0.10% 0.08% 1.34% 0.06% (annualized) 0.05% 1.01% 0.01% 1.00% 0.00% <-0.03%> 0.58% <-0.05%> 0.53% <Recoveries> Offs 0.50% 0.47% 0.46% <-0.07%> Performing Assets as % of Total Asse
Slide 20: Home Equity Loans Outstanding
KBW Winter Financial Services Symposium HOME EQUITY LOANS OUTSTANDING $400,000 $390,000 $383,898 $380,000 $370,000 $362,854 $360,000 $350,000 $340,000 $334,300 $331,537 $331,719 $330,900 $331,872 $326,577 Loans (000's) $330,000 $318,252 $320,000 $310,000 $300,000 2014 2015 2016 2017 2018 Q1 2019 Q2
Slide 21: Deposits
KBW Winter Financial Services Symposium DEPOSITS 21 February 2020
Slide 22: Consistent and Balanced Core Deposit Funding
KBW Winter Financial Services Symposium CONSISTENT AND BALANCED CORE DEPOSIT FUNDING* Time Deposits 8% Wtd.Avg. Rate - 1.27% Non Interest Bearing Savings 34% 35% Wtd.Avg. Rate - 0.27% Interest Demand 23% Wtd.Avg. Rate - 0.07% *Weighted average costs of deposits for the quarter ended 12/31/2019 22 Fe
Slide 23: Market Share of All Branches Sorted by Zip Code
KBW Winter Financial Services Symposium MARKET SHARE OF ALL BRANCHES SORTED BY ZIP CODE State Deposits Rank Institution Name Charter Market Share (Hdqtrd) ($000) 1 Wells Fargo Bank, N.A. SD Federal $ 35,520,322 27.7% 2 Bank of America NC Federal $ 11,585,002 9.0% 3 U.S. Bank, N.A. Wtd. Avg. OH Feder
Slide 24: Consistent Deposit Growth – Attractive Cost
KBW Winter Financial Services Symposium CONSISTENT DEPOSIT GROWTH – ATTRACTIVE COST $6,000,000 CAGR – TO 12/31/2019 0.50% 5 yrs. 9.7% 10 yrs. 11.4% $5,000,000 0.40% $4,000,000 0.30% 0.23% $3,000,000 0.22% 0.22% 0.20% 0.20% Deposits (000’s) 0.20% $2,000,000 0.15% 0.16% Total 0.12% of Deposits Cost To
Slide 25: Financials
KBW Winter Financial Services Symposium FINANCIALS 25 February 2020
Slide 26: Net Interest Margin – Contribution from Discount Accretion
KBW Winter Financial Services Symposium NET INTEREST MARGIN – CONTRIBUTION FROM DISCOUNT ACCRETION 5.00% 0.12% 0.13% 0.14% 0.16% 0.16% 0.10% 0.14% 0.09% 0.16% 0.06% 0.05% 4.52% 4.50% 4.00% 4.49% 4.39% 4.44% 4.39% 4.30% 4.29% 4.23% 4.27% 3.00% 4.22% 2.00% 1.00% 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 27: Return on Average Assets
KBW Winter Financial Services Symposium RETURN ON AVERAGE ASSETS 1.45% 1.43% 1.44% 1.40% 1.40% 1.24% 1.20% 1.11% 1.03% 1.00% 0.89% 0.80% 0.60% 0.40% 0.20% 0.00% 2015 2016 2017 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 27 February 2020
Slide 28: Return on Average Shareholder's Equity
KBW Winter Financial Services Symposium RETURN ON AVERAGE SHAREHOLDER’S EQUITY 12.00% 10.93% 10.75% 10.68% 10.42% 10.04% 10.03% 10.00% 9.47% 8.10% 8.00% 6.00% 4.00% 2.00% 2015 2016 2017 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 28 February 2020
Slide 29: Efficiency Ratio (Fully Taxable Equivalent)
KBW Winter Financial Services Symposium EFFICIENCY RATIO (FULLY TAXABLE EQUIVALENT) 67.9% 68.0% 65.5% 66.0% 64.7% 63.7% 64.0% 62.0% 60.1% 60.1% 59.9% 60.0% 58.8% 58.0% 56.0% 54.0% 52.0% 50.0% 2015 2016 2017 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 29 February 2020
Slide 30: Dividends Paid
KBW Winter Financial Services Symposium DIVIDENDS PAID $0.90 $0.75 0.22 0.19 $0.60 0.17 0.15 0.22 $0.45 0.15 0.17 0.17 0.11 0.15 $0.30 0.13 0.19 0.11 0.17 0.15 0.17 $0.15 0.11 0.13 0.17 0.19 0.11 0.11 0.15 0.15 $0.00 2014 2015 2016 2017 2018 2019 Annual $0.44 $0.52 $0.60 $0.66 $0.70 $0.82 Dividends
Slide 31: Capital Ratios
KBW Winter Financial Services Symposium CAPITAL RATIOS ($000’S) 15.7% 16.0% 15.1% 15.2% 15.1% 14.8% 14.9% 14.4% 14.4% 14.5% 14.4% 14.1% 14.1% 14.2% 13.8% 13.7% 13.6% 14.0% 13.2% 13.2% 13.4% 13.3% 13.0% 12.5% 12.2% 12.2% 11.7% 11.7% 12.0% 10.6% 10.6% 10.2% 9.5% 9.7% 10.0% 9.1% 9.2% 9.1% 9.3% 8.0% 6.0
Slide 32: TriCo Bancshares Is Committed To
KBW Winter Financial Services Symposium TRICO BANCSHARES IS COMMITTED TO: Improving the financial success and well-being of our shareholders, customers, communities and employees. 32 FebruaryFebruary 2020 2020
TriCo Bancshares — KBW Winter Financial Services Symposium 2020 on 6ix