Trico Bancshares · NASDAQ:TCBK
Trico Bancshares — Shareholder Meeting (May 2018)
26 slides from Trico Bancshares's shareholder meeting presentation, May 22, 2018
Slide 1: TriCo Bancshares Annual Meeting of Shareholders
TRICO BANCSHARES Annual Meeting of Shareholders May 22, 2018 Richard P. Smith – President & CEO
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Certain comments included in this presentation may involve forward-looking statements, for which TriCo Bancshares (“TriCo” or the “Company”) claims the protection of the “safe harbor” provisions credited by Federal securities laws. Such forward-looking statements are subject to
Slide 3: Agenda
AGENDA • Company Overview • Key Revenue Drivers • Deposits & Loans Overview • Financial Overview • Questions 3 | May 2018
Slide 4: Company Overview
COMPANY OVERVIEW Asset Size: $4.8 Billion Location: Chico, CA Founded: 1975 Deposits: $4.1 Billion Loans (net): $3.0 Billion Customers: ~190,000 Bank Branches: 67* ATMs: 84 _____________________________________________________________________________ *includes our telephone banking center 4 | May 20
Slide 5: Company Overview
COMPANY OVERVIEW Nasdaq: TCBK *Stock Price: $39.31 Market Capitalization: $902 million *Price to Book stated: 1.8x *Price to TBVPS 2.1x **TCBK Asset Size Rank of CA Publicly Traded Banks: 16 Pro Forma TCBK+FNBG Rank: 13 *Valuation Information as of market close 05/21/2018 **Ranking as of 12/31/2017
Slide 6: Key Drivers of Bank Revenues
KEY DRIVERS OF BANK REVENUES • Deposits & Margin – Average Cost of Deposits of 0.11% as of 03/31/2018 – Net Interest Margin in Q1 2018 was 4.14% • Commercial Loans – Commercial Real Estate • Diverse portfolio of property types and geographies – Commercial & Industry Lines and Loans & Leases – Agricu
Slide 7: Deposit Structure
DEPOSIT STRUCTURE Time Deposits 8% Savings Wtd. Avg. Non Interest 34% Rate – 0.62% Bearing Wtd. Avg. Rate – 0.12% 33% Interest Demand 25% Wtd. Avg. Rate – 0.08% Data as of 03.31.2018 7 | May 2018
Slide 8: Total Ending Deposits
TOTAL ENDING DEPOSITS $4,084,404 $4,009,131 $3,895,560 $4,000,000 $3,631,266 $3,380,423 $3,500,000 $3,000,000 $2,410,483 $2,500,000 $2,000,000 2013 2014 2015 2016 2017 Q1 2018 Data as of 03.31.2018 8 | May 2018
Slide 9: Market Share of All Branches
MARKET SHARE OF ALL BRANCHES SORTED BY ZIP CODE Rank Institution Name State Charter Deposits Market Share (Hdqtrd) ($000) 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 10: Loan Portfolio by Type
LOAN PORTFOLIO BY TYPE Construction - RE Construction - Commercial 3% Commercial 2% Consumer - Other 7% 1% Secured by RE - Residential 1-4 Consumer - Home 13% Consumer - Equity 1% HELOCS 9% Secured By Commercial Real Estate 64% Data as of 03.31.2018 10 | May 2018
Slide 11: Total Loans
TOTAL LOANS NET OF UNAMORTIZED DEFERRED LOAN FEES AND DISCOUNTS ($000’S) $3,015,165 $3,069,733 $3,100,000 $2,900,000 $2,759,593 $2,700,000 $2,522,937 $2,500,000 $2,282,524 $2,300,000 $2,100,000 $1,900,000 $1,672,007 $1,700,000 $1,500,000 2013 2014 2015 2016 2017 Q1 2018 Data as of 03.31.2018 11 | Ma
Slide 12: Financials
FINANCIALS ® trico bancshares
Slide 13: Total Assets
TOTAL ASSETS ($000’S) $5,000,000 $4,761,315 $4,779,957 $4,517,968 $4,500,000 $4,220,722 $3,912,358 $4,000,000 $3,500,000 $3,000,000 $2,744,066 $2,500,000 $2,000,000 2013 2014 2015 2016 2017 Q1 2018 Data as of 03.31.2018 13 | May 2018
Slide 14: Capital Ratios
CAPITAL RATIOS ($000’S) 15.6% 0.16 14.8% 15.1% 14.8% 14.4% 14.1% 13.8% 13.7% 13.9% 13.5% 13.2% 13.0% 0.14 12.2% 12.2% 11.6% 11.7% 0.12 0.1 9.1% 9.2% 9.1% 9.2% 9.1% 8.6% 0.08 0.06 0.04 0.02 0 2013 2014 2015 2016 2017 Q1 2018 Common Equity Tier 1 Tier 1 Total Risk Based Tangible Common Data as of 03.3
Slide 15: Net Income
NET INCOME ($000’S) $45,000 $40,000 $2,989 $11,422 $12,533 $35,000 $11,897 $30,000 $12,694 $12,199 $25,000 $5,236 $5,650 $20,000 $7,361 $13,589 $8,234 $9,405 $15,000 $11,366 $6,325 $10,000 $4,859 $12,079 $13,910 $5,000 $10,674 $8,477 $7,365 $8,336 $- 2013 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Data as
Slide 16: Net Interest Margin
NET INTEREST MARGIN 5.00% 4.00% 3.00% 4.18% 4.17% 4.39% 4.23% 4.22% 4.14% 2.00% 1.00% 0.00% 0.15% 0.12% 0.10% 0.09% 0.10% 0.11% 2013 2014 2015 2016 2017 Q1 2018 Wtd. Avg. Deposit Rate Net Interest Margin Data as of 03.31.2018 16 | May 2018
Slide 17: Diluted Earnings Per Share
DILUTED EARNINGS PER SHARE $2.00 $1.75 $0.50 $0.54 $0.13 $1.50 $0.32 $0.25 $0.51 $1.25 $0.45 $0.55 $0.53 $1.00 $0.50 $0.58 $0.75 $0.39 $0.41 $0.30 $0.49 $0.50 $0.53 $0.52 $0.60 $0.25 $0.45 $0.46 $0.36 $- 2013 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Data as of 03.31.2018 18 | May 2018
Slide 18: Dividends Paid
DIVIDENDS PAID $0.66 $0.70 $0.60 $0.60 $0.52 0.17 $0.44 0.15 $0.50 $0.42 0.15 0.17 $0.40 0.11 0.15 0.11 0.13 $0.30 0.11 0.11 0.15 0.17 $0.20 0.11 0.13 0.11 $0.10 0.15 0.15 0.17 0.09 0.11 0.11 $0.00 2013 2014 2015 2016 2017 2018 Data as of 03.31.2018 Q1 Q2 Q3 Q4 19 | May 2018
Slide 19: Non-Performing Assets to Total Assets
NON-PERFORMING ASSETS TO TOTAL ASSETS 2.50% 2.17% 2.00% 1.34% 1.50% 1.01% 1.00% 0.53% 0.58% 0.54% 0.50% 0.00% 2013 2014 2015 2016 2017 Q1 2018 Data as of 03.31.2018 20 | May 2018
Slide 20: Return on Average Assets
RETURN ON AVERAGE ASSETS 1.40% 1.17% 1.11% 1.20% 1.04% 1.03% 1.00% 0.87% 0.89% 0.80% 0.60% 0.40% 0.20% 0.00% 2013 2014 2015 2016 2017 Q1 2018 Data as of 03.31.2018 21 | May 2018
Slide 21: Return on Average Shareholder's Equity
RETURN ON AVERAGE SHAREHOLDER’S EQUITY 11.34% 12.00% 11.00% 10.04% 9.47% 10.00% 8.67% 8.10% 8.00% 6.00% 4.00% 2.00% 0.00% 2013 2014 2015 2016 2017 Q1 2018 Data as of 03.31.2018 22| May 2018
Slide 22: Acquisition of FNB Bancorp
Acquisition of FNB Bancorp Announced December 11, 2017
Slide 23: Premier NorCal Community Bank
PREMIER NORCAL COMMUNITY BANK • TCBK has an extensive presence throughout Northern California and the Central Valley with 66 FNBG (12) 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 histo
Slide 24: Market Position in NorCal
MARKET POSITION IN NORCAL • FNBG and TriCo will create the largest Northern California- Largest Northern California Based Banks based community bank at over $6bn in assets Community MRQ Total Assets • TriCo currently has a dominant market share in several Rank Bank Rank Institution ($mm) 1 Wells Far
Slide 25: Pro Forma Loan & Deposit Mix
PRO FORMA LOAN & DEPOSIT MIX TCBK FNBG Pro Forma(1) 1.0% 7.8% 3.7% 1.3% 6.2% 1.1% 7.4% 9.9% 17.0% 8.5% Loan Portfolio 14.9% 15.3% 5.9% Highly Similar 5.2% Lending Focus, 5.0% 61.5% 65.9% 62.5% Shared Credit Culture C&I CRE Construction & Land Residential Mortgage Home Equity Consumer & Other $2.9B L
Slide 26: TriCo Bancshares Is Committed To
TRICO BANCSHARES IS COMMITTED TO: Improving the financial success and well-being of our shareholders, customers, communities and employees.