Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Piper Jaffray Western Banking Symposium 2018
39 slides from Trico Bancshares's conference presentation, Nov 8, 2018
Slide 1: Piper Jaffray Western Banking Symposium
Piper Jaffray Western Banking Symposium Richard P. Smith – President & Chief Executive Officer Peter G. Wiese – EVP – Chief Financial Officer November 8, 2018 Exhibit 99.1
Slide 2: Safe harbor statement
Safe harbor statement Piper Jaffray Western Bank Symposium November 2018 Certain 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.
Slide 3: Agenda
agenda Company Overview Recent Activities & Focus Key Revenue Drivers Challenges & Opportunities Financials Questions Piper Jaffray Western Bank Symposium November 2018
Slide 4: Company overview
COMPANY overview Asset Size:$6.3 Billion Location:Chico, CA Founded:1975 Deposits:$5.1 Billion Loans (net):$4.0 Billion Bank Branches:79 ATMs:99 Piper Jaffray Western Bank Symposium November 2018
Slide 5: Company overview
COMPANY overview Nasdaq:TCBK Stock Price*:$36.72 Market Capitalization:$1.12 billion Price to Book stated:1.4x Price to TBVPS2.0x Rank (Total Assets) among CA Publicly Traded Banks:12 (Source: SNL Financial) Piper Jaffray Western Bank Symposium November 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 Piper Jaffray Western Ba
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 Piper
Slide 11: Key drivers of bank revenues
Key drivers of bank revenues Deposits & Margin Average Cost of Deposits of 0.16% as of 09/30/2018, including approx. $992 million of deposits from FNB Net Interest Margin in Q3 2018 was 4.32% Commercial Loans Commercial Real Estate Diverse portfolio of property types and geographies Commercial & Ind
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 Piper Jaf
Slide 13: Deposit structure
Deposit structure Data as of 09.30.2018 Piper Jaffray Western Bank Symposium November 2018
Slide 14: Total ending deposits
Total ending deposits ($000’s) *Data as of 09.30.2018 inclusive of the 2014 and 2018 mergers Piper Jaffray Western Bank Symposium November 2018 17.1% CAGR* *
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 Piper Jaffray Western B
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 continues to contribute to home equity pay downs and payoffs (re-fi), but production remains solid. $41MM in Q3 2018 HELOC volume
Slide 18: Home equity loans outstanding
Home equity loans outstanding ($000’s) Data as of 09.30.2018 Piper Jaffray Western Bank Symposium November 2018
Slide 19: Loan portfolio by type
Loan portfolio by type November 2018 Piper Jaffray Western Bank Symposium Data as of 09.30.2018
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 Piper Jaffray Western Bank Symposium November 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 Piper Jaffray Western Bank
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 09.30.2018 inclusive of the 2014 and 2018 mergers 20.3% CAGR* Piper Jaffray Western Bank Symposium November 2018
Slide 23: Growth opportunities – TCBK history
Growth opportunities – TCBK HISTORY (000’s) Piper Jaffray Western Bank Symposium November 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? Piper Jaffray Western Bank Symposium November 2018
Slide 25: Financials
Financials Piper Jaffray Western Bank Symposium November 2018
Slide 26: Total assets
Total assets ($000’s) *Data as of 09.30.2018 inclusive of the 2014 and 2018 mergers 19.2% CAGR* Piper Jaffray Western Bank Symposium November 2018
Slide 27: Capital ratios
Capital ratios ($000’s) Data as of 09.30.2018 Piper Jaffray Western Bank Symposium November 2018
Slide 28: Net income
Net income ($000’s) Data as of 09.30.2018 Piper Jaffray Western Bank Symposium November 2018
Slide 29: Net interest margin
Net interest margin Data as of 09.30.2018 Piper Jaffray Western Bank Symposium November 2018
Slide 30: Non-interest income
Non-interest income ($000’s) Data as of 09.30.2018 Piper Jaffray Western Bank Symposium November 2018
Slide 31: Efficiency ratio (fully taxable equivalent)
Efficiency ratio (fully taxable equivalent) Data as of 09.30.2018 Piper Jaffray Western Bank Symposium November 2018
Slide 32: Diluted earnings per share
Diluted earnings per share Data as of 09.30.2018 Piper Jaffray Western Bank Symposium November 2018
Slide 33: Dividends paid
Data as of 09.30.2018 DividendS PAID Piper Jaffray Western Bank Symposium November 2018 12.0% CAGR
Slide 34: Non-performing assets to total assets
non-performing assets to total assets Data as of 09.30.2018 Piper Jaffray Western Bank Symposium November 2018
Slide 35: Allowance for loan losses to total loans
Allowance for loan losses to total loans Data as of 09.30.2018 Piper Jaffray Western Bank Symposium November 2018
Slide 36: Annualized net charge-offs to average loans
Annualized net charge-offs to average loans Data as of 09.30.2018 *0.08% related to ASC 310-30 PCI loan adjustment Piper Jaffray Western Bank Symposium November 2018
Slide 37: Return on average assets
Data as of 09.30.2018 Return on average assets Piper Jaffray Western Bank Symposium November 2018
Slide 38: Return on average shareholder's equity
Data as of 09.30.2018 Return on average shareholder’s equity Piper Jaffray Western Bank Symposium November 2018
Slide 39: TriCo Bancshares is committed to
TriCo Bancshares is committed to: Improving the financial success and well-being of our shareholders, customers, communities and employees. Piper Jaffray Western Bank Symposium July / August 2018
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