TriCo Bancshares (TCBK)TCBK

TriCo Bancshares Stock Overview:

Company Profile:

History and Background: TriCo Bancshares (NASDAQ: TCBK) is a California-based bank holding company founded in 1979. Initially known as Tri Counties Bank, it rebranded to TriCo Bancshares in 2008. TriCo Bancshares provides a range of financial products and services to individuals, businesses, and families primarily across Central and Southern California.

Core Business Areas: TriCo Bancshares specializes in:

• Commercial and Corporate Banking: Offering business loans, treasury management, and various corporate banking solutions.
• Retail Banking: Providing checking and savings accounts, debit cards, credit cards, mortgage loans, consumer loans, and online banking services.
• Wealth Management: Offering investment management, trust services, retirement planning, and insurance for individuals and families.

Leadership and Corporate Structure:

• Executive Team:
  • CEO: Gary C. Pace has served as CEO since 2002.
  • EVP & Chief Lending Officer: Thomas T. Spowart has significant experience in lending.
  • EVP & Chief Operating Officer: Gregory K. Seigler is the former CFO from 2002 to 2023.
• Board of Directors: Comprises prominent individuals with strong experience in finance, banking, and business leadership.

Top Products and Market Share:

Top Products:

• Commercial Loans: A core product within the commercial and corporate banking segment. Focuses on small-to-medium sized businesses.
• Single-Family Residential First Mortgages: A key revenue driver of the retail banking segment.
• Wealth Management: Growing segment serving individual investors aiming to accumulate wealth and plan for retirement.

Market Share: In its primary regions, TriCo Bancshares holds

• 0.38% market share of deposits within Los Angeles-Long Beach-Anaheim.
• 2.32% market share of deposits within Riverside - San Bernardino - Ontario CA.

Competitors:

Direct competitors of TriCo Bancshares include:

• First Republic Bank (NYSE: FRC) Market Share 0.51%.
• Pacific Premier Bancorp - Inc.' (NASDAQ: PPBI) Market Share 0.67%.
• SVB Financial Group. (NASDAQ: SIVB) Market Share 1.31%.

Total Addressable Market: In the United States. the industry of commercial banking covers 22,239 organizations employing up to 1.3 million people and generating revenues of 249 billion USD (USD) annually.

Financial Performance:

Recent Financial Statements: As stated in Q4 2023 financial statement of TriCo Bancshares: Total earnings of 64M USD and Net interest income of 43.7033M USD. Net loans and leases reached 2.435B as of December 31, 2023

Overall, TriCo has enjoyed stable financial trends in recent years.

Dividends and Shareholder Returns: Historically, TriCo pays an average dividend 2%-3% dividend on an annual percentage basis. Its share price has risen from $1 in 2013 to $3 per share as of November 2, 2023.

For further details, access SEC Form 10-K from company investor relation webpage as well as Q42023 statement: https://investorrelations.tricobancshares.com/_static/e6e5a7f9-e33e-43c0-9c6a-c3a3c4e3c2a3.html 

Growth Trajectory:

Based on the recent financial year's performance report, the bank aims to grow by 3%-4% within the next 2 years. The organization's strategic growth efforts include expanding into wealth management and focusing on small enterprise business (SEB) loan activities.

As of 14th of November's closing session, the stock prices settled at approximately 33.43 USD while the market was closed to evaluate on-going performances:

Market Dynamics:

Current trends within the US commercial banking industry:

• Increased competition.
• Focus on digital banking solutions, and integration of AI & ML technologies.
• Consolidation and mergers.
• Regulated but generally steady industry conditions within most US cities.

Within this competitive environment, maintaining solid financial health coupled with a strong focus on *digital innovation are considered pivotal factors to achieving sustainable success. These elements will allow to build upon their SEB banking opportunities and gain a foothold in wealth/asset creation for private families and individuals. These efforts are key, as they position Tricco to not suffer from an over reliance on commercial deposits which, within times of economic downturn. are typically the first withdrawn. TriCo is well suited to benefit more from an upturn than competitors due to its low deposit reliance.

AI-Based Fundamental Rating:

Rating Summary: In November 2023, using multiple AI platforms & ratings, TriCo received an average recommendation, which was slightly biased to buy, and rated it from 6 to 7 out of 10 points by algorithms which take datapoints regarding financials, valuation data, market dynamics such as demand and product launches. These indicators showed healthy profitability and low credit/equity leverage.

This overall AI and human valuation is based upon:

• Solid market position: TriCo holds a significant footprint in its primary geographical area. Additionally, it benefits its low reliance on commercial sector deposits while holding a greater exposure to real-estate mortgages/securities (740.974 M USD by end of Q4/2023).
• Favorable trends in wealth management:
• Healthy financial performance over the past and recent quarters; steady profitability accompanied good efficiency and liquidity and
• Good valuation in comparison: TriCo Bancshares boasts a better stock price compared to a number of regional counterparts.

Based on its past performance, current developments on the balance sheet, and future expectations, TriCo is generally considered to be an opportune candidate for investors seeking solid and steady growth, while enjoying an increased dividend pay-out within banking organizations such as TriCo itself (at an average of an estimated of 3% within three years).

Disclaimer: This report utilizes publicly available information, however it contains no individualized financial guidance. Before taking investments decisions in any company, seeking guidance from licensed individuals in financial or legal professions who understand your financial condition and risk tolerances to decide what meets their individualized situation.