Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — West Coast Bank CEO Forum 2020
32 slides from Trico Bancshares's conference presentation, Jan 30, 2020
Slide 1: West Coast Bank CEO Forum, Phoenix, Arizona
West Coast Bank CEO Forum Phoenix, Arizona January 2020 Richard P. Smith – President & Chief Executive Officer John S. Fleshood – EVP & Chief Operating Officer
Slide 2: Safe Harbor Statement
West Coast Bank CEO Forum 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 involve inher
Slide 3: Agenda
West Coast Bank CEO Forum AGENDA • Most Recent Quarter Recap • Company Overview • Lending Overview • Deposit Overview • Financials 3 January 2020
Slide 4: Most Recent Quarter Highlights
West Coast Bank CEO Forum 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 quarter. Net
Slide 5: Company Overview
West Coast Bank CEO Forum COMPANY OVERVIEW 5 January 2020
Slide 6: Company Overview
West Coast Bank CEO Forum 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 California’s
Slide 7: Company Overview
West Coast Bank CEO Forum 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
West Coast Bank CEO Forum 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 TriCo since 1996
Slide 9: Consistent Earnings Track Record
West Coast Bank CEO Forum CONSISTENT EARNINGS TRACK RECORD $0.80 $24 $22 $0.70 $20 $0.60 $18 $16 $0.50 $14 $0.40 $12 $0.30 $10 E.P.S (Diluted) Earnings (inMillions) $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 2018 2018 2018 2018 2019 2019 2
Slide 10: Diluted Earnings Per Share
West Coast Bank CEO Forum 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 January 2020
Slide 11: Consistent Organic Growth and Disciplined Acquirer
West Coast Bank CEO Forum CONSISTENT ORGANIC GROWTH AND DISCIPLINED ACQUIRER CAGR 5 yrs. 10.6% 10 yrs.11.6% *Total Assets for years ending 2002-2019. 11 January 2020
Slide 12: What Keeps Us Up at Night?
West Coast Bank CEO Forum 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 January 2020
Slide 13: Loans
West Coast Bank CEO Forum LOANS 13 January 2020
Slide 14: Consistent Loan Growth
West Coast Bank CEO Forum CONSISTENT LOAN GROWTH $5,000,000 $4,500,000 $4,000,000 6.06% $3,500,000 5.62% ) 5.48% 5.50% 5.46% 5.33% $3,000,000 5.24% 5.52% 5.37% $2,500,000 5.16% $2,000,000 Total (000’sLoans $1,500,000 YieldLoans (%) $1,000,000 $500,000 $0 2013 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4 201
Slide 15: Loan Portfolio Mix
West Coast Bank CEO Forum 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 Construction, $546,435,
Slide 16: Diversified CRE & Construction Portfolio
West Coast Bank CEO Forum 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 Self Storage $2
Slide 17: Conservative Construction and CRE Underwriting Culture – LTV Distribution
West Coast Bank CEO Forum 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 % of Portfolio 11% 71%-75% $321.485 10% 76%-80% $86,103 81%-90%
Slide 18: Diversified Geography – CRE & Construction
West Coast Bank CEO Forum 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 $283,524 9% $1,
Slide 19: Non-Performing Assets & Net Charge Offs
West Coast Bank CEO Forum 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% 0.05% 1.01% 0.01% 1.00% 0.00% -0.01% <-0.03%> 0.58% <-0.05%> 0.53% 0.47% 0.46% 0.50% <-0.07%> 0.34% 0.35% 0.31% <-0.10%> 2015 0.30% -0.10%< > <-0.11% > Non-Performing A
Slide 20: Home Equity Loans Outstanding
West Coast Bank CEO Forum 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 2019 Q3 2019 Q
Slide 21: Deposits
West Coast Bank CEO Forum DEPOSITS 21 January 2020
Slide 22: Consistent and Balanced Core Deposit Funding
West Coast Bank CEO Forum 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 January 2020
Slide 23: Market Share of All Branches Sorted by Zip Code
West Coast Bank CEO Forum 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 Federal $ 10,947,425
Slide 24: Consistent Deposit Growth – Attractive Cost
West Coast Bank CEO Forum 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% 0.20% 0.16% $2,000,000 0.15% Total Deposits (000’s) 0.12% Total Cost Deposits of 0.10% 0.11
Slide 25: Financials
West Coast Bank CEO Forum FINANCIALS 25 January 2020
Slide 26: Net Interest Margin – Contribution from Discount Accretion
West Coast Bank CEO Forum 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 2018 2018 2018
Slide 27: Return on Average Assets
West Coast Bank CEO Forum 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 January 2020
Slide 28: Return on Average Shareholder's Equity
West Coast Bank CEO Forum 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 January 2020
Slide 29: Efficiency Ratio (Fully Taxable Equivalent)
West Coast Bank CEO Forum 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 January 2020
Slide 30: Dividends Paid
West Coast Bank CEO Forum 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 30 January 202
Slide 31: Capital Ratios
West Coast Bank CEO Forum 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% 12.2% 12.2% 12.5% 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% 4.0% 2.0% 0.
Slide 32: TriCo Bancshares Is Committed To
West Coast Bank CEO Forum TRICO BANCSHARES IS COMMITTED TO: Improving the financial success and well-being of our shareholders, customers, communities and employees. 32 JanuaryJanuary 2020 2020