TriCo Bancshares Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
Is TriCo Bancshares a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $1.66b | Revenue (TTM) = $437.09m
Market Cap = $1.66b | Estimated Revenue = $459.79m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $1.71b | Revenue (TTM) = $437.09m
Enterprise Value = $1.71b | Forward Revenue = $459.79m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
TriCo Bancshares Stock Analysis
Analyst Opinions
10 Analysts have issued a TriCo Bancshares forecast:
Analyst Opinions
10 Analysts have issued a TriCo Bancshares forecast:
TriCo Bancshares Events
Past Events
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JUL
13
First Hawaiian, Inc., TriCo Bancshares - M&A Call
3 months ago
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StocksGuide Free
TriCo Bancshares — First Hawaiian, Inc., TriCo Bancshares - M&A Call
1. Management Discussion
Good day, and thank you for standing by. Welcome to the First Hawaiian Bank Investor Call. [Operator Instructions] Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Kevin Haseyama, Investor Relations Manager. Please go ahead.
Thank you. Good morning, everyone, and thank you for joining us on short notice. Earlier today, First Hawaiian and TriCo Bancshares announced that they have entered into a definitive agreement to combine in an all-stock transaction. With me today is Bob Harrison, Chairman, President and CEO of First Hawaiian; Jamie Moses, Chief Financial Officer of First Hawaiian; and Rick Smith, Chairman, President and CEO of TriCo Bancshares.
We have prepared a slide presentation we will refer to in our remarks today. The presentation is available for downloading and viewing on our website at fhb.com in the Investor Relations section. During today's call, we will be making forward-looking statements. Please refer to the forward-looking statements on Slide 2 of the presentation as well as the additional information on Slide 3 and in the joint press release and our SEC filings. We may also discuss certain non-GAAP financial measures. The appendix to this presentation contains reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. And now I'll turn the call over to Bob.
Thank you, Kevin. Good morning, everyone. Today is a very important day for First Hawaiian. We are pleased to announce our partnership with TriCo Bancshares, a high-performing California institution that we have long respected. This combination creates a leading Pacific banking franchise that is well positioned to capture the growth opportunities in California and broader West Coast. I want to begin by welcoming Rick Smith and the TriCo employees, customers, communities and shareholders. TriCo is an organization that emphasizes relationships, possesses deep local roots, a differentiated deposit franchise, experienced management team and disciplined credit culture. Those characteristics matter to us because they are the same characteristics that define First Hawaiian.
I'd also like to share my personal excitement for this combination. Over the last year, I've been asked what we would look for in a Mainland acquisition opportunity, but I believe we have found the ideal partner in TriCo. I look forward to working with Rick, the leadership of TriCo and all the colleagues across the company to build the leading Pacific banking franchise. Before we continue, I'd like to invite Rick Smith to share a few thoughts. He and the entire TriCo team have built an exceptional business, and we're excited about what we'll accomplish together. Rick, over to you.
Thank you, Bob, and good morning, everybody. I'm really pleased to be here and be part of today's announcement.
For more than 50 years, Tri Counties Bank has built -- has been built by one relationship at a time by outstanding employees serving customers and communities across California.
Our mission has always been straightforward: to improve the financial success and well-being of our shareholders, customers, communities and employees. I'm incredibly proud of what our team has accomplished and everything that we bring to this partnership reflects their hard work and dedication. Over the past 2 years, I've spent a lot of time thinking about how we can create the right kind of scale for our bank.
We look carefully at a number of strategic options to strengthen our company and position it for the future, including acquisitions where we could be either the buyer or the seller. What makes Tri Counties Bank special is the balance of our franchise. We serve customers and businesses in nearly equal measure, and we've built a large community bank with a very strong operating culture.
So any partnership with another financial institution had to be the right fit. As we evaluated this combination, what really stood out was how much we have in common with First Hawaiian.
We share the same values, putting relationships first, maintaining a disciplined credit culture, building a high-quality, low-cost core funded deposit franchise and staying deeply committed to the communities we serve. Bob and his team has earned our respect, and that cultural alignment gives me real confidence that First Hawaiian is the right banking partner for Tri Counties Bank. For our customers and our bankers, this is a meaningful step forward.
By joining First Hawaiian, we gain a larger balance sheet and a broader set of products and capabilities. That means our bankers will be able to do even more for our customers and communities that have trusted us for decades. We also have a strong track record of successful integrations, and I'm confident that we can deliver a smooth transition to our customers, our employees and our new partners at First Hawaiian Bank. Bob, I'll turn it back to you.
Thank you, Rick. Turning to Slide 4. The combined company will have approximately $34 billion of assets, $22 billion of loans, $29 billion of deposits and 117 branches. We're bringing together 2 banks with deep community ties, exceptional customer relationships, low-cost funding and balance sheet flexibility to drive top quartile results.
On a combined basis, we will retain a best-in-class deposit franchise, have ample liquidity and capital and generate top quartile financial returns. Jamie will provide more details on that shortly. I'd like to emphasize that this partnership does not change our commitment to Hawaii. Hawaii remains the foundation of our franchise, and we will continue to be central to our identity.
This transaction strengthens First Hawaiian by creating greater diversification, opportunities for growth and robust capital generation. This will allow us to continue investing in our customers, employees and communities, both in Hawaii and on the Mainland. Slide 5 lays out the strategic rationale of this transaction. First, TriCo is in many of the California markets where we have operated for decades.
As the sixth largest bank headquartered in the Western U.S., we will have the scale and retail footprint to offer a full product suite to both First Hawaiian and TriCo clients. Second, like us, TriCo has a premier deposit franchise, ensuring we will maintain our funding advantage and balance sheet strength to support growth and profitability.
Third, as I said previously, we wanted to partner with a proven leadership team to help us realize the opportunity in the Mainland. I'm excited to have Rick join our Board and invite other senior executives to join our leadership team. This will ensure a smooth integration process and more importantly, drive the Mainland business going forward.
Fourth, the transaction provides immediate shareholder value creation through earnings per share accretion and top quartile profitability metrics while providing manageable tangible book value per share dilution and associated earnback. And finally, we will continue to generate excess capital with clear priorities of how to deploy that capital over time.
Turning to Slide 6. For those of you who do not know TriCo, they are an exceptional bank operating with a retail network throughout Northern California and the Central Valley with additional banking offices in 3 major Southern California markets.
Similar to us, they have a pristine credit history and a high-quality, low-cost deposit franchise. Their loan portfolio adds diversification to us, both in terms of geography and commercial products. On Slide 7, I want to reiterate how TriCo is the right partner for First Hawaiian. It's been clear on our recent earnings calls what we would look for in a partner, and TriCo checks all of the boxes.
They have a complementary culture, scale and most importantly, a team ready to deliver on the growth opportunity afforded by having a larger balance sheet and full product suite on the Mainland. To underscore the point on shared culture, Slide 8 shows our commitment to communities. We both have a long history of putting all stakeholders at the forefront of what we do. We plan to continue the investments TriCo has made in the communities they serve.
Moving to Slide 9. First Hawaiian has decades of experience in California. We began lending here in 1995. And today, nearly 1/4 of our loan portfolio is based in the Mainland. The Mainland is an area of focus given the relative growth opportunity and diversification it provides.
What we have lacked since separation from Bank of the West is a branch network to expand client relationships and offer a full suite of product offerings. This is why we've been focused on finding the right partner to further build our Mainland platform. California is the world's fourth largest economy by GDP and the opportunity is substantial.
This transaction adds scale, local leadership and retail funding in attractive markets where we have experienced and seen meaningful long-term growth. Slide 10 highlights the full breadth of capabilities and products that will now be available on the Mainland. Clients will have access to our complete set of lending products, treasury and wealth solutions as well as commercial and consumer cards to compete with the largest banks while we continue to differentiate ourselves as local relationship-first bankers.
Going to Slide 11 and before I hand it over to Jamie, I want to reiterate the quality of the deposit bases of both First Hawaiian and TriCo. As you can see on the chart on the left, both First Hawaiian and TriCo have achieved meaningful cost of deposit advantage versus the banking industry. On a combined basis, we will have top decile deposit costs, no brokered balances and excess liquidity. With that, I'll pass it over to Jamie.
Thank you, Bob, and good morning, everyone. I'll start on Slide 12 with the transaction structure. Under the terms of the fixed exchange ratio agreement, TriCo shareholders will receive 2.095 shares of First Hawaiian common stock for each share of TriCo common stock. The transaction is structured as 100% common stock consideration.
Based on First Hawaiian's closing price as of July 10, 2026, this represents approximately $2 billion of aggregate transaction value. At closing, First Hawaiian shareholders are expected to own approximately 65% of the combined company and TriCo shareholders approximately 35%. The transaction is priced at 1.98x tangible book value and 14.4x 2027 earnings or 10.7x fully synergized earnings with our expected 25% cost saves.
Four TriCo directors, including Rick Smith, are expected to join the First Hawaiian Board. Tri Counties Bank will retain its brand in California, and we do not anticipate any branch closures.
Rick will also be an adviser to the CEO with additional senior leadership positions for Dan Bailey and Peter Wiese. The transaction will be subject to shareholder and regulatory approvals, and we expect to close in the fourth quarter of this year. Turning to Slide 13. The financial impact of this transaction is highly compelling. Using conservative assumptions summarized on this page, we expect run rate top quartile returns and efficiency as a combined company.
Our shareholders will realize significant value creation with 6% EPS accretion and a high teens IRR with manageable tangible book value per share dilution of less than 5% and an earnback of 2.8 years. Our pro forma CET1 ratio of 12.4% provides optionality going forward.
Importantly, these financial metrics are not dependent on branch closures or modeled revenue synergies. On Slide 14, I want to highlight the earnings power of the combined company and significant capital generation. This will provide flexibility to meet our capital allocation priorities, funding organic growth, maintaining our leading dividend profile and pursuing opportunistic share repurchases.
Finally, on Slide 15, I want to cover the comprehensive due diligence process we performed to ensure we have full confidence in our ability to deliver what has been presented. We performed a thorough review across all focus areas and want to thank the tireless efforts of the First Hawaiian and TriCo employees participating in this process as well as the team of third-party advisers who helped us along the way.
As Bob said, TriCo is the right partner because of our similarities, operating as a relationship-based bank with a disciplined credit culture in communities they serve holistically. Our diligence process only reinforced our excitement of what we can achieve together. I'll now hand it back to Bob for some closing remarks.
Thank you, Jamie. On Slide 16, you see the key points we want you to take away from today's announcement. First, this is a disciplined extension of First Hawaiian's strategy. The combination provides a larger, more diversified platform in markets we already have relationships, capabilities and experience.
Second, TriCo is the right partner. They are well managed, relationship-oriented and conservatively run. They bring a very attractive California deposit franchise, experienced local leadership, strong community ties and a culture that is highly compatible with First Hawaiian. Lastly, the transaction creates meaningful shareholder value. It is expected to be accretive to earnings per share, generate an attractive IRR, produce manageable book value dilution and earn back and maintain robust capital levels with significant ongoing capital generation.
We have a lot of work ahead, and we'll move forward with the same discipline that has guided First Hawaiian for many years. We are committed to working very closely with Rick and the TriCo team to maintain customer relationships, retain local leadership, support our employees and communities and progress through integration.
We are excited to welcome TriCo's employees, customers, communities and shareholders to First Hawaiian, and we look forward to building the leading Pacific banking franchise together. Turning to Slide 17. While the partnership with TriCo is a focus of today's discussion, I'll just briefly touch on our preliminary second quarter 2026 results.
We had strong results with solid profitability, continued net interest margin expansion, tangible value per share growth. We are pleased to see continued execution across our franchise, including disciplined expense management, positive momentum in core operating metrics. And while we're happy to answer any questions on our preliminary results, we'll have a more detailed Q2 2026 earnings release discussion on July 24.
And now we're ready to answer any of your questions.
[Operator Instructions]
Our first question comes from Jared Shaw with Barclays.
2. Question Answer
Yes. So congratulations on the deal.
As we look out, do you anticipate being able to do bigger loans in the Mainland now with the bigger balance sheet? And I guess, how should we think about the risk profile of the bank migrating after this?
Yes, Jared, this is Bob. And maybe I'll touch on that and ask others to join in as they want to. We're not really looking to change our risk profile at this time. We've got 2 very good operating banks. We feel strongly that the first focus is on the integration and making sure we get that right.
As we go through that and work more closely with Rick and his team, opportunities will present themselves, but we will have more capital, more liquidity should we decide to relook at our risk profile. But that's not really baked into why we're doing the transaction.
And then -- go ahead, sorry.
No, I agree with Bob saying. I don't think we have to change anything we're doing. I think it just gives us the ability to have more scale and mass and do more volume, not necessarily bigger deals.
Okay. And then not being as familiar with TriCo, just looking at the 1.8% credit mark that's assumed in the deal and comparing that against sort of the historical charge-off levels. Is there something in the portfolio that's driving that higher credit loss assumption?
No, Jared, this is Jamie. This is just their ACL coming over as part of the deal. We're just making that assumption as part of the deal modeling.
Okay. Got it. And then I guess just finally for me, how should we think about the buyback over the course of '26 as the deal is pending?
Yes. So we retain that flexibility to buy back shares. The model itself anticipates no share buybacks until through 2027, but the flexibility is there if we need it.
Our next question comes from David Feaster with Raymond James.
Congratulations on the deal. Obviously, it's financially and strategically compelling. I mean these are 2 good banks that we're putting together. I guess the concern is going to be on the integration and the conversion.
Glad to see the branding staying the same, key leadership from TriCo staying on. Could you maybe walk through the time line for the conversion? What guardrails you have in place to help minimize disruption and just make sure this is as smooth as possible.
Yes. Dave, maybe I'll start and then hand it over to Rick or anybody else who wants to comment. First of all, we're going through the regulatory and shareholder process. So that will take some time, and that will put us out sometime later this year. During that time frame, while we're waiting for those approvals to come in, we'll be working with our technology partners to find the right date for a conversion at some point to work through that.
And I think that's specifically what you're asking on part of your question. But as far as the integration more broadly, we haven't done an acquisition in a while, but we did do a core conversion not that many years ago, and we learned a lot about ourselves and our technology in that process.
Rick and his team, and I'll let him speak for himself in a second, have done a number of conversions over time. And we've already started talking about that. We already have people identified that we'll be working together to make that happen. So it is a big part of making this work and get off on the right foot, but it's not like we haven't done difficult things in the past. But Rick, do you want to comment?
Yes, David. Good question. Certainly, it comes into our head when we think about combining with another institution. We do have a pretty good track record of doing deals and integrating them in quickly. And so I think we bring to the table a lot of experience in that. And I think that will be of great assistance to First Hawaiian.
So in my mind, it's -- just as your question came out first, I think it is one of the first priorities to evaluate and deal with, and it's -- it was also part of the decision-making process. So it's not lost on us.
Okay. That's helpful. Maybe touching on the loan growth side. I assume that this deal solves for the need for you all to do SNCs in Mainland CRE participations going forward. Is that -- first of all, is that a fair characterization?
And secondarily, have you all partnered with TriCo on participations previously, maybe that can give you extra comfort with their underwriting and the compatibility of your credit departments?
Maybe to answer the last question first. I don't believe we have partnered on deals in the past. We certainly are aware of them, but they have worked at different markets. They do offer one of the things that we really like about the transaction as well, they're lending in different verticals than we are. So it gives us some not only geographic, but also industry type diversification in the loan portfolio.
We have done a lot of due diligence and met the team and know the team, and they're very conservative, very good underwriters, very much like we are in that respect. So I think there's a very high degree of alignment in credit process and how we're going to look at deals going forward. Generally, their deals have been a little more granular than ours. So I think that as we work together, we'll try to leverage the best of both to make sure we can support them with capital and liquidity to do all the deals they want to do in their space.
And some of the larger deals they've looked at that they might have said maybe this is a little bit too much for us, we'll work on that together and see if it makes sense for us to do that on a go-forward basis. But Rick, anything to add to that?
No, I think that says it. I think we're -- if we could do enough volume and do more volume than what we've been doing, I'm sure Bob would be real happy not to do more SNCs.
I hope I can provide that to them. That would be great.
That's great. And last one for me. Look, the good news is TriCo's balance sheet was in pretty good shape, fortunately, but marking that will give you a lot of financial flexibility. I'm just curious, how do you think about potential optimization strategies, I guess, both on the First Hawaiian or TriCo side? And if any of that is included in these pro forma financial targets?
Dave, it's Jamie. None of that is included in the pro forma financial targets that you see on here. We'll start looking at that and thinking more about that as we go forward. But the focus for today is the great deal that this is and bringing these 2 companies together, and we're very proud of that.
Our next question comes from Kelly Motta with KBW.
Hi, good morning or good middle of the night to our fellows in Hawaii there. Congrats on the deal. Having covered both of you guys for a while now, I think strategically, we can -- the deal makes a lot of sense. It was good to see that you have key executives locked down.
Clearly, the strength of a bank is the people. Can you provide any color or commentary on how you guys are thinking about ensuring the retention you need on the TriCo side to complete the vision ahead?
Kelly, this is Bob. First of all, we're all together in Rick's conference room. So we're not three hours earlier.
It's good to hear.
It's 6 a.m. for all of us, almost. So that's the good news. We've just -- over the last 1.5 years, I've gotten to know Rick much better and got to know the many on the management team better.
We are really making sure that we have the right team in place and make sure that the team Rick has created and has stays around. And of course, there's going to be some retention associated with that, which will be more, I think, better detailed in the proxy and all that information when it comes out, but it's not really appropriate to talk about now. Rick, anything you'd like to add?
No, I think the fact that we're also keeping the institution intact, not closing branches. All those things really matter when you talk about retention of key people to make the organization go forward. That was important to me, and I think it was important to Bob also. And so that will go a long way to addressing some of the risk of losing important people in your organization.
Yes. And good point. I mean that's one of the key things we're looking for that we talked about for a year plus now is making sure we have a good partner that has a strong management team that wants to stay because we don't have a management team to replace them with. So we want to make real sure that we found the right partner as we have with TriCo for that reason.
Got it. That's helpful. Maybe as a follow-up, since you are retaining key people, not closing any branches, with regards to the 25% cost saves, can you walk through some of the components of that and what makes you comfortable with that number given some of the easier cost takeout like branch closures aren't a factor in that?
Yes, Kelly, it's Jamie. So I think there's a lot of things that you can look at besides branch closures to get to the numbers. So we're at the low end of sort of the expected range around cost saves of 25%. And you have IT contracts, you've got -- there will be some vendor consolidation. There's a whole lot in there to get to it, and we're confident we can get to a 25% number. We think that's very doable.
Got it. That's helpful. Maybe a last one for me, specifically for -- that follows at First Hawaiian with the preliminary Q2 results. It looks like a nice beat here. The one thing was is the -- on the deposit side, the contraction was a bit more than I had expected. Understanding we'll get more on the earnings call.
Do you have kind of the drivers of what you saw on the deposit side that account for what was a bigger decline than I think we've seen in recent quarters?
Yes, Kelly, it's Jamie. We don't want to get too deep into the weeds on this, but that was mostly public deposits that are fairly volatile for us, as you know. And so we'll get more into that on the 24th, but that was -- I'll just sort of leave it with that.
Our next question comes from Andrew Terrell with Stephens.
I wanted to just ask on -- I know we've talked a lot in the past about a potential acquisition for you guys, and you were looking for maybe a little bit of incremental growth out of a potential partner, a maybe quicker growth rate relative to legacy First Hawaiian.
So I guess as you're contemplating those or modeling out the acquisition, what type of growth rate are you expecting from the TriCo franchise? And then any loan portfolio segments you're more excited about leaning into and any you're deemphasizing?
Yes, maybe I'll start, Andrew. This is Bob. Really, the first thing we're looking for was the right partner, and we strongly believe we found that. And part of what TriCo has been doing is growing at the rate they felt was appropriate.
When we looked at growth, which Jamie will get into the numbers on a little bit, we know that's going to happen over time. We are in a number of verticals already that they are not, and they are in verticals that we have historically not been in. So the first step will be to learn from each other and see how we can better support those verticals. We aren't really looking to do anything new that neither one of us has done to date.
That's not part of what we're looking to do. It's really do more of what we do today collectively and do it better. But Jamie, maybe you can speak to the numbers.
Yes. I mean I think what we want to do is we want TriCo to be TriCo. They've been doing a great job for a long time, and we want to have them continue to do that. From a financial modeling perspective, the growth numbers that you see in there are based on historical earnings growth.
So that's what we're going to -- that's what we have baked into the model. And so we just want them to continue to do what they do.
There's some enhancements, potential enhancements, potential revenue synergies that are not contemplated in the model. As we've talked about in the past, a bigger balance sheet may be able to allow bigger holds and that kind of thing as we go forward. And possibly, there's some cross-sell opportunities that we can do together that we wouldn't have been able to do alone.
So I think -- yes, I don't think that we're expecting some massive shift in how we behave together. But I think that there's opportunity there to have slightly better growth rates than we've had in the past.
Yes. Got it. Okay. And then just kind of looking at the math, heavier in Central and Northern California. TriCo had recently made a bit of a push into Southern California. You guys obviously now have post the acquisition, a lot of density and a good platform in California. Just would love to hear your thoughts on how you think about scaling the California business over time, interest in continuing to build in Southern California as well.
Well, certainly, Rick and I will be working closely on that. But the first step is really focusing on the integration, getting the various approvals, focusing on the integration. We are going to continue to support Rick and the team and the growth they have had to date to Jamie's comments.
And if that turns into more growth in Southern California, where, say, we have an office in Pasadena doing our car dealer business, sure, great. But that's not built into our model, and that's not a requirement for -- we feel a requirement for success.
Our next question comes from Janet Lee with TD Cowen.
This is [Brad Del Sandro] on for Janet Lee. Question on deposit pricing really. So the combined company should have one of the lower deposit cost franchises. Does that change how you think about pricing and competitiveness going forward? Or do you expect the -- to maintain a similar level of pricing discipline while still retaining and growing client relationships?
Yes. I mean, yes, we definitely want to continue to operate the way we have in the past. Both of us are relationship-based in how we do things. And that's been part of our ability to be able to maintain this type of deposit franchise. So I think what we want to do is to operate the way that we've always operated, continue to have strong relationships with our customers and our communities. And so I wouldn't anticipate any changes in that, Brad.
Yes. And just to add to that, Brad, this is Bob. Our noninterest-bearing is still going to be on a pro forma basis over 30%, and that's really working with customers, both consumers and businesses on their core checking accounts, operating accounts and supporting them really broadly across everything they do. And that's, I know, very important for both of our banks.
Great. And then on capital, so you highlight the ability to generate more than $325 million of capital annually post close. Just going forward, how are you thinking about balancing organic growth and share repurchases and other capital deployment opportunities? And should we expect a similar pace of buybacks moving forward that we've seen in recent years?
Yes. Maybe just to start and hand it off to Jamie or Rick. clearly, we want to support organic growth. That's our #1 goal. And any capital we generate that we can then put into supporting the communities we serve and the customers that we're privileged to work with. That's our first priority. And then after that, we do have a strong dividend, which will remain. We're not changing that. And so that's the first step of that capital return. And then opportunistically, we'll be looking at share repurchase or other things. But Jamie or Rick, anything to add to that?
I don't have anything, Bob.
Our next question comes from Anthony Elian with JPMorgan.
Bob, if I look at the historical First Hawaiian franchise, it's been about a low to maybe mid-single digits balance sheet growth this year. Do you have a sense with TriCo post conversion, what the organic growth profile -- organic balance sheet growth profile of the company would look like?
Yes. So what we're -- as Jamie mentioned, what we have in the model is really putting together our 2 historical growth profiles, and I'll let him speak to what that turns out to be, but we aren't modeling anything in excess of what we've been able to achieve historically. Of course, we'd like to do that, but that's not what we're anticipating in this transaction.
But Jamie, what does that come out to be?
I would just -- I guess I would just add, Tony, that we're not anticipating any changes in our growth rates in this modeling. If we can do a little bit better, which I think we all believe we can do a little bit better than we have in the past, then that is additive to the numbers you see here for the company.
And then is everything built on the back-end technology infrastructure side to support TriCo coming on board? I know there's recently the core conversion, but are there any incremental investments needed around the edges on any back-end platforms?
Yes. A good question, and we're going to be going through that during the integration process. I can speak to the core provider, the systems we're using support banks much larger than ours. And so certainly larger than our combined bank at $34 billion. So it wouldn't be a core provider issue. It's certainly I'm kicking through my head, most of the key technology that I can think of that we use.
And in fact, many of the systems we both use, so to be more of a mapping over rather than converting over is scales to much larger organizations than ourselves. So we'll be going through that in the integration planning and laying all that out. But there's nothing on the surface that says we have to do something dramatic to be able to combine the 2 banks from a technology perspective.
Tony, are you still there?
Our next question comes from Matthew Clark with Piper Sandler.
Just to follow up on an earlier question and just confirm that there's no plan to prune any of your legacy assets or portfolios, either legacy First Hawaiian or TriCo before or after the deal closes this year?
No, no plans for that. Again, we're planning on keeping the TriCo brand in the markets it serves. And while we'll be going through a conversion at some point, we're happy with all the business lines we're in. Over time, those will ebb and flow based on what the market needs are and what our customers need, but no plans at this time.
Yes, Matt, from a balance sheet perspective, we don't have any plans at the moment. We'll be looking at things to potentially do over time and as we get through integration and such. But right now, our model is built off of nothing like that. So anything that we might consider doing there would probably be additive to the pro forma.
Got it. And then I know it's early days and you want to get -- execute on the integration first. But any updated thoughts on future M&A in terms of size range or geography? Is there a desire to be a top 3 or top 5 player in the Western region?
Yes. Great question. We're not really focused on that right now. We're really just focused on going through the approval process for this with both the shareholders and the regulators and then the integration afterwards. But we have plenty of time for those conversations at a later date.
Okay. And was this a negotiated deal or an auction?
It was a little bit of both, I would say, right? I think Bob and Rick spent a lot of time together over the past couple of years, and I think that's...
And you'll see more of the details in the proxy and all that comes out.
Yes. And then just a couple of housekeeping items. Are you opting out of the CECL double count at closing?
Yes.
Okay. And then the pro forma tax rate we should use?
27%.
Our next question comes from Jeff Rulis with D.A. Davidson.
No doubt a partnership with a solid franchise in TriCo. But any sort of initiatives in place for securing or the employees, customers in the state of Hawaii, I guess, as the attention sort of flips to securing or integrating the transaction. Anything kind of to defend that position? Or is it simply you're able to do both? And just any initial thoughts on the Hawaii-centric piece?
Sure. This is Bob. Nice to meet you. We're going to be very focused on our bankers being out there to communicate with their customers. And first of all, we'll be communicating internally, and that's already started to our employees and then giving them the tools that they need to reach out to their customers and explain what's happening that I mentioned, I think, in the prepared remarks, but it's certainly worth reiterating. Hawaii is still home.
It is still the core of what we're doing as a combined basis. It's very important to us. We are not stepping back or stepping away from Hawaii. This will actually allow us to continue to grow and build capital and invest now in 2 places, not only Hawaii, but also in California. So it's not stepping back from either, but really being able to do more in both markets.
Our next question comes from Brandon Berman with Bank of America.
The first one quickly, I'm not too familiar with TriCo, but it does look like they screen liability sensitive. I know you guys have previously mentioned looking at floors to neutralize the downside risk from rates. Does this change the plans? I guess, ultimately, what I'm trying to understand is how you guys think about the interest rate sensitivity of the pro forma institution?
Yes. Thanks, Brandon. It's Jamie. So they do screen as liability sensitive, and that will help us with our asset sensitivity to bring that down a little bit. When we fully get together, we'll continue to look at that and make decisions around our interest rate risk profile. But that is one of the nice things about this transaction is it does -- it helps us from an asset liability management perspective.
Got you. And then just one more for me. I appreciate that both banks have similar underwriting or credit performance. Do the banks have similar loan approval processes? I'm just curious if there are any changes that will need to be made on that front.
This is Bob. We've spent a lot of time -- Rick and I have been spending a lot of time talking about that. Our teams have been spending a lot of time talking about it. It's generally the same.
You have lenders have individual limits, credit officers have higher limits and then there's a committee structure for the largest deals. They're not identical. So there will be some -- nothing changes -- nothing needs to change right away, but there over time, will probably be harmonization on that just to find out what works best for both markets.
Our next question comes from Andrew Liesch with StoneX Group.
Congratulations. Bob, it sounds like you guys have really first started talking 1.5 years, a couple of years ago, better than before there have been some discussion of you expanding to the Mainland in a deal at least in earnest. I guess what initially attracted you to TriCo all that time ago? Did you think at that point that, yes, this might be someone we'd like to acquire if the opportunity ever came about?
Well, no, I mean, maybe to back up, we've been thinking about this for a very long time. We've been talking about it to you and investors and others for a year plus. But we certainly started this journey long before a year ago. And in getting out there and meeting more people and getting to know folks Rick and I got to know each other and got along quite well. And I think part of that was the similarities of not only our life experiences in banking, but also in just the way we look at customers and relationships and employees and community support and all of that.
There is a high degree of alignment on that. And so when you're talking to a bunch of people, the TriCo model, the people themselves really stuck out as a lot like us and a good partner to see if we could -- a good potential partner to see if we could come to a conclusion on, and I'm just very happy that it's worked out.
That concludes today's question-and-answer session. I'd like to turn the call back to Bob Harrison for closing remarks.
Thank you. I really appreciate your time today and your interest in this partnership. We're very excited about the opportunity ahead and are focused on executing a successful integration process. And we're certainly available for any follow-up questions and look forward to speaking with you again on July 24, next week, Friday. So thank you, everybody. Appreciate it.
This concludes today's conference call. Thank you for participating. You may now disconnect.
TriCo Bancshares — First Hawaiian, Inc., TriCo Bancshares - M&A Call
Financial data from TriCo Bancshares
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 437 437 |
9%
9%
100%
|
|
| - Interest Income | 367 367 |
9%
9%
84%
|
|
| - Non-Interest Income | 70 70 |
7%
7%
16%
|
|
| Interest Expense | 112 112 |
13%
13%
26%
|
|
| Non-Interest Expense | -242 -242 |
1%
1%
-55%
|
|
| Loan Loss Provisions | 9.65 9.65 |
6%
6%
2%
|
|
| Net Profit | 136 136 |
21%
21%
31%
|
|
In millions USD.
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TriCo Bancshares Stock News
Company Profile
TriCo Bancshares is a bank holding company, which engages in the provision of banking services to retail customers and small to medium-sized businesses. It offers personal and business accounts; personal and business loans and credit; and personal and business services. The company was founded on October 13, 1981 and is headquartered in Chico, CA.
StocksGuide Premium
| Head office | United States |
| CEO | Mr. Smith |
| Employees | 1,117 |
| Founded | 1981 |
| Website | www.tcbk.com |


