NasdaqGS:TCBK

Stock Analysis Report

Executive Summary

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers.

Rewards

Trading at 37.6% below its fair value

Earnings grew by 92.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -1.4% per year for the next 3 years

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Bank of Hawaii

NYSE:BOH

Share Price & News

How has TriCo Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCBK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

TCBK

1.0%

US Banks

0.3%

US Market


1 Year Return

7.0%

TCBK

19.1%

US Banks

18.5%

US Market

Return vs Industry: TCBK underperformed the US Banks industry which returned 19.1% over the past year.

Return vs Market: TCBK underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

TCBKIndustryMarket
7 Day0.9%1.0%0.3%
30 Day1.6%1.0%1.5%
90 Day9.3%12.4%5.7%
1 Year9.3%7.0%22.6%19.1%21.1%18.5%
3 Year20.7%14.1%30.2%21.1%45.9%36.4%
5 Year73.4%57.2%77.5%57.8%71.4%52.5%

Price Volatility Vs. Market

How volatile is TriCo Bancshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TriCo Bancshares undervalued compared to its fair value and its price relative to the market?

37.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCBK ($38.98) is trading below our estimate of fair value ($62.47)

Significantly Below Fair Value: TCBK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TCBK is poor value based on its PE Ratio (12.8x) compared to the Banks industry average (12.7x).

PE vs Market: TCBK is good value based on its PE Ratio (12.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TCBK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TCBK is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is TriCo Bancshares forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCBK's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: TCBK's earnings are forecast to decline over the next 3 years (-1.4% per year).

High Growth Earnings: TCBK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TCBK's revenue (1.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: TCBK's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCBK's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has TriCo Bancshares performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCBK has high quality earnings.

Growing Profit Margin: TCBK's current net profit margins (29.9%) are higher than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: TCBK's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: TCBK's earnings growth over the past year (92.1%) exceeds its 5-year average (20.3% per year).

Earnings vs Industry: TCBK earnings growth over the past year (92.1%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: TCBK's Return on Equity (10.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TriCo Bancshares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: TCBK has a low level of unsold assets or inventory.

Debt Coverage by Assets: TCBK's debt is covered by short term assets (assets are 3.9x debt).


Financial Institutions Analysis

Asset Level: TCBK's level of assets compared to its equity is low.

Allowance for Bad Loans: TCBK has a sufficient allowance for bad loans.

Low Risk Liabilities: TCBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: TCBK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TCBK's loans are broadly funded by customer deposits.

Level of Bad Loans: TCBK has an appropriate level of bad loans (0.44%)


Next Steps

Dividend

What is TriCo Bancshares's current dividend yield, its reliability and sustainability?

2.26%

Current Dividend Yield


Upcoming Dividend Payment

Purchase TriCo Bancshares before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: TCBK's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: TCBK's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: TCBK's dividend payments have been volatile in the past 10 years.

Growing Dividend: TCBK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), TCBK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCBK's dividends in 3 years are forecast to be well covered by earnings (34.2% payout ratio).


Next Steps

Management

What is the CEO of TriCo Bancshares's salary, the management and board of directors tenure and is there insider trading?

6.4yrs

Average management tenure


CEO

Rick Smith (61yo)

20.1yrs

Tenure

US$3,249,147

Compensation

Mr. Richard P. Smith, also known as Rick, has been the Chief Executive Officer of TriCo Bancshares since November 1999. Mr. Smith has also been the Chief Executive Officer of Tri Counties Bank, a subsidiar ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD3.25M) is about average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: Rick's compensation has increased by more than 20% in the past year.


Management Age and Tenure

6.4yrs

Average Tenure

59yo

Average Age

Experienced Management: TCBK's management team is seasoned and experienced (6.4 years average tenure).


Board Age and Tenure

14.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: TCBK's board of directors are seasoned and experienced ( 14.4 years average tenure).


Insider Trading

Insider Buying: TCBK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$186,33812 Sep 19
Craig Carney
EntityIndividual
Role
Other Key Executive
Executive VP & Chief Credit Officer of Tri Counties Bank
Shares5,122
Max PriceUS$36.38
SellUS$191,24519 Aug 19
Craig Carney
EntityIndividual
Role
Other Key Executive
Executive VP & Chief Credit Officer of Tri Counties Bank
Shares5,166
Max PriceUS$37.02
BuyUS$537,45007 Aug 19
C F Koehnen & Sons, Inc
EntityCompany
Shares15,000
Max PriceUS$35.83
SellUS$136,62913 Feb 19
W. Walker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,632
Max PriceUS$37.62
SellUS$71,46020 Dec 18
Cory Giese
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$35.73
SellUS$122,15820 Dec 18
W. Walker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,443
Max PriceUS$35.48

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.2%.


Management Team

  • Rick Smith (61yo)

    President

    • Tenure: 20.1yrs
    • Compensation: US$3.25m
  • Craig Carney (60yo)

    Executive VP & Chief Credit Officer of Tri Counties Bank

    • Tenure: 22.9yrs
    • Compensation: US$604.16k
  • Craig Compton (63yo)

    Corporate Secretary & Director

    • Tenure: 30.9yrs
    • Compensation: US$118.42k
  • John Fleshood (56yo)

    Executive VP & COO

    • Tenure: 3yrs
    • Compensation: US$804.07k
  • Dan Bailey (50yo)

    Executive VP & Chief Banking Officer

    • Tenure: 12.6yrs
    • Compensation: US$660.64k
  • Glenn Hunter (68yo)

    Senior VP & Chief Human Resource Officer

    • Tenure: 6.4yrs
  • Michael Murphy (58yo)

    Vice President and Marketing Director

    • Tenure: 5.9yrs
  • Jason Cove

    Shareholder Relations

    • Tenure: 2.9yrs
  • Bruce Belton

    Vice President

    • Tenure: 0yrs
  • Peter Wiese (44yo)

    EVP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$1.02m

Board Members

  • William Casey (74yo)

    Chairman & Lead Director

    • Tenure: 18.9yrs
    • Compensation: US$144.02k
  • Rick Smith (61yo)

    President

    • Tenure: 20.1yrs
    • Compensation: US$3.25m
  • Craig Compton (63yo)

    Corporate Secretary & Director

    • Tenure: 30.9yrs
    • Compensation: US$118.42k
  • Don Amaral (66yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$124.12k
  • W. Walker (74yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$87.34k
  • Mike Koehnen (58yo)

    Vice Chairman of the Board

    • Tenure: 9.9yrs
    • Compensation: US$206.53k
  • John S. Hasbrook (59yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$200.11k
  • Martin Mariani (62yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$89.93k
  • L. Chrysler (65yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$87.34k
  • Cory Giese (40yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$87.34k

Company Information

TriCo Bancshares's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TriCo Bancshares
  • Ticker: TCBK
  • Exchange: NasdaqGS
  • Founded: 1974
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.163b
  • Shares outstanding: 30.52m
  • Website: https://www.tcbk.com

Number of Employees


Location

  • TriCo Bancshares
  • 63 Constitution Drive
  • Chico
  • California
  • 95973
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCBKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1993

Biography

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. It accepts demand, savings, and money market accou ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:45
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.