Richard P. Smith, President & CEO Thomas J. Reddish ......Sep 15, 2015 · Raymond James 2015 U.S. Bank Conference Richard P. Smith, President & CEO Thomas J. Reddish, Executive Vice

Raymond James 2015 U.S. Bank Conference

Richard P. Smith, President & CEO Thomas J. Reddish, Executive Vice President & CFO

September 9, 2015

TRICO BANCSHARES

SAFE HARBOR STATEMENT Certain comments included in this presentation may involve forward-looking statements, for which TriCo claims the protection of the “safe harbor” provisions credited by Federal securities laws. Such forward-looking statements are subject to risks and uncertainties which may cause TriCo’s actual results to differ materially from those contemplated by such statements. Additional information concerning certain of these risks and uncertainties are described in TriCo’s Annual Report of Form 10-K for the fiscal year ended December 31, 2014 and TriCo’s Quarterly Reports on Form 10-Q as filed with the SEC in fiscal 2015.


2 | September 2015

AGENDA • Company Overview • Recent Activities & Focus • Key Revenue Drivers • Challenges & Opportunities • Financials • Questions


3 | September 2015

OVERVIEW Asset Size: $3.9 Billion Location: Chico, CA Founded: 1975 Deposits: $3.3 Billion Loans (net): $2.4 Billion Customers: 190,000 Bank Branches: 68 ATMs: 79


4 | September 2015

OVERVIEW Nasdaq: TCBK Stock Price: $24.05 Market Capitalization: $550,000,000 *Price to TBVPS: 1.51x **Asset Size Rank of CA Publicly Traded Banks: 15


5 | September 2015

*Valuation Information as of Market Close 06/30/2015 **Ranking as of 06/30/2015 – Source: SNL Financial


6 | September 2015

EXECUTIVE TEAM

Rick Smith President & CEO TriCo since 1993

Tom Reddish EVP Chief Financial Officer

TriCo since 1994

Dan Bailey EVP Retail Banking TriCo since 2007

Craig Carney EVP Chief Credit Officer

TriCo since 1996

Carol Ward EVP- Chief

Operating Officer TriCo since 2012

Michael Cushman EVP Strategic Initiatives

TriCo since 2014

Richard O’Sullivan EVP Commercial

Banking TriCo since 1984

Glenn Hunter Sr. VP Chief Human Resources Officer TriCo since 2013

RECENT ACTIVITIES • Completed merger & systems integration with North Valley

Bancorp - October 2014 • Acquired 2 banks through FDIC bidding process – Granite Community Bank, Granite Bay, CA in 2011 – Citizens Bank of N. California, Nevada City, CA in 2012 • Closed 16 branches since 2011 • Opening of new branch in Colusa, CA • Significant investments in technology – Mobile and On-line Banking – Cash Management Software – Data Security and Disaster Recovery


7 | September 2015

TRANSACTION HIGHLIGHTS • Creates the Premier Community Bank in

Northern California (1)

– $3.9 billion in total assets – Approximately 80 branches from Bakersfield to the Oregon Border;

expands the Tri Counties brand into Humboldt, Trinity, and Sonoma counties

– Top 3 deposit market share rank in 15 of TriCo’s 26 pro forma counties of operation (2)

• Similar community banks with strong core deposit bases


9 | September 2015

(1) Based on 6/30/2013 deposit market share data per FDIC. (2) Among community banks.

• Strong and growing bank capital • Competitive product set to compete with banks both

large and small • Superior reputation versus large bank competitors • Continue to see organic growth in current environment • Strong focus on risk management and new regulatory

realities • Experienced project teams well prepared for continued

growth through acquisition


10 | September 2015

POSITIONED FOR TODAY, PREPARED FOR THE FUTURE


12 | September 2015

WHAT IS LONG TERM SUCCESS?

• A winning culture with a motivated and talented work force

• Significant and growing market share • Low cost core deposit base • Diversified revenue sources • Efficient operations • Strong risk management practices • Rewarding our shareholders

KEY DRIVERS OF BANK REVENUES • Deposits & Margin – Average Cost of Deposits of .15% as of 06/30/2015 – Net Interest Margin at 06/30/2015 is 4.35% • Non-Interest Income – Mortgage Finance – Service Charge & Fee Income – Bank Wealth Management Program • Consumer Loans

– Home Equity Lines/Loans – Installment Lending – Small Business


13 | September 2015

KEY DRIVERS OF BANK REVENUES continued • Commercial Loans – Commercial Real Estate – Commercial & Industry Lines and Loans & Leases – Agricultural Loans – Asset Based Loans

• Growth Opportunities –Wealth Management – Bank Managed Program – Raymond James as Broker-Dealer – Merchant Fee Opportunities – Growth Opportunity with North Valley Bank


14 | September 2015


15 | September 2015

DEPOSIT STRUCTURE

Non Interest Bearing

32%

Interest Demand 23%

Savings 35%

Time Deposits 10%

Wtd. Avg. Rate – 0.12%



Data as of 06.30.2015


16 | September 2015

TOTAL ENDING DEPOSITS

$1,200,000

$1,700,000

$2,200,000

$2,700,000

$3,200,000

$3,700,000

2010 2011 2012 2013 2014 Q2 2015

$1,852,173

$2,190,536 $2,289,702

$2,410,483

$3,380,423 $3,341,682

Data as of 06.30.2015


17 | September 2015

MARKET SHARE OF ALL BRANCHES SORTED BY ZIP CODE

Rank Institution Name State (Hdqtrd)

Charter Deposit ($000)

Market Share

1 Wells Fargo Bank, National Association

SD Federal 6,367,673 21.93%

2 Bank of America, National Association

NC Federal 3,823,853 13.17%

3 Rabobank, National Association CA Federal 2,921,974 10.06%

4 Tri Counties Bank CA State 2,377,310 8.19%

12 North Valley Bank CA State 431,253 1.49%

4 Tri Counties Bank - Consolidated CA State 2,808,563 9.68%

5 JP Morgan Chase Bank, National Association

OH Federal 2,237,731 7.71%

6 Umpqua Bank OR State 1,234,794 4.25%

7 U.S. Bank National Association OH Federal 1,232,016 4.24%

Source: FDIC Summary of Deposits, June 2014 Total Deposits 06/30/2015: $3,895,680

NON-INTEREST INCOME

• Consistently Represents Approximately 25+% of Total Bank Revenues

• Residential Home Mortgage Lending – Refinances remain consistent

– Increasing numbers of purchase transactions and increasing overall activity for home loans


18 | September 2015

NON-INTEREST INCOME continued

• Wealth Management Revenues – New opportunities with North Valley Bank

• Lower revenues from service charges but increased interchange income

• Cash Management fees continue to increase following merger integration

• Merchant Card Services – $326,000 Q2 2015


19 | September 2015

CONSUMER LOANS • Increased Demand for Consumer Loans

– Home equity values have increased – Economic uncertainty improving – Reluctance to borrow (job security concerns) – Underperforming job market

• Low rate environment led to historically high refi activity – $38MM in Q1 2015 HELOC volume resulted in $6MM reduction in

outstandings

• Auto loans demand constant • North Valley Bank customer base represents

tremendous opportunity for consumer cross-sale


20 | September 2015


21 | September 2015

HOME EQUITY LOANS OUTSTANDING

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2010 2011 2012 2013 2014 Q2 2015

$376,485 $372,149 $355,582 $354,454

$383,898 $378,687

Data as of 06.30.2015


22 | September 2015

HOME EQUITY LINES OF CREDIT <80% LTV AT ORIGINATION

03/31/08 12/31/11 12/31/14 Q1 2015 Prod.

Avg CB Score 757 754 755 770

Avg Loan Commitment to Value at Origination

62% 61% 58% 59%

Avg LTV to current value N/A 92% 58% N/A

Utilization Rate 49% 48% 50% 42%

Data as of 03.31.2015


23 | September 2015

LOAN PORTFOLIO BY TYPE

Secured by RE - Residential 1-4

12.18%

Secured by RE - Com'l

58.28%

Consumer - HELOCS 14.38%

Consumer - Home Eq

1.40%

Consumer - Other 1.38%

Commercial 8.18%

Construction - RE 1.75%

Construction - Commercial

2.41%

Data as of 06.30.2015


24 | September 2015

COMMERCIAL LOANS

Total Commercial 70.62%

Total Consumer 29.38%

Data as of 06.30.2015

COMMERCIAL BANKING

• Target loans of $2,000,000 to $10,000,000 • Personalized banking

• Assigned Relationship Managers • Assigned Cash Management Officers

• In-market lending • Competition is as fierce

and diverse as it has ever been • $121 million in CRE & C&I production resulted in $31 million in net

growth - Q1


25 | September 2015

COMMERCIAL BANKING continued

• Agricultural lending • Loans <$1,000,000 served through alternate

channel • Business Relationship Managers • Credit scoring combined with traditional underwriting

• SBA 7A program now offered


26 | September 2015


27 | September 2015

COMMERCIAL REAL ESTATE PORTFOLIO AS OF 03.31.2015

Real Estate Loan Type # of Loans

Outstandings* % to Total Loans

Avg. Commitment Amount

Office 559 278,521,000 12% 513,000

Retail 403 272,933,000 12% 705,000

Multi-Family 291 182,446,000 8% 668,000

Special Purpose Gas Station, Mini Storage, Hotel/Motel, Restaurant

149 130,035,000 6% 906,000

Other Warehouse, Manufacturing, Bare Land, Agricultural Land + Structures

1,178 630,580,000 27% 452,000

Totals 2,580 1,364,480,000 59% -

Averages - - - 555,000

* RE Loan Type segment totals do not include all purchase discount adjustments Data as of 03.31.2015

AG PORTFOLIO AS OF 03.31.2015


28 | September 2015

• Agricultural Loans (excluding RE secured) total $72.6 million in total commitments with $26 million outstanding

• The highest crop concentrations by commitments are:

Multiple Crop $22.2 million 24 loans $925,000 Avg. Commitment

Rice $21.9 million 58 loans $378,000 Avg. Commitment

Almonds $6.3 million 11 loans $573,000 Avg. Commitment

Dairy $3.4 million 10 loans $340,000 Avg. Commitment

Beef $2.8 million 10 loans $280,000 Avg. Commitment

Data as of 03.31.2015

• Construction lending totals approximately $99,616,000 outstanding with $138,486,000 in commitments

• Residential construction approx. $41,958,000 • Commercial construction approx. $57,658,000 • Total construction, land development and land

acquisition loans represent 4.2% of total loans outstanding


29 | September 2015

CONSTRUCTION AND A&D

Data as of 06.30.2015


30 | September 2015

TOTAL LOANS NET OF UNAMORTIZED DEFERRED LOAN FEES AND DISCOUNTS ($000’S)

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2010 2011 2012 2013 2014 Q2 2015

$1,419,571 $1,551,032 $1,564,823 $1,672,007

$2,282,524 $2,393,763

Data as of 06.30.2015

• Mergers and Acquisitions – North Valley Bancorp 2014 – Citizens Bank of Northern California 2011 – Granite Community Bank 2010 – North State National Bank 2003 – 9 Branch purchase Wells Fargo 1997 – Sutter Butte Savings 1996 – Country National Bank 1993 – Branch purchase from Wells Fargo 1987 – Shasta County Bank 1981


31 | September 2015

GROWTH OPPORTUNITIES

• Low Interest Rate Environment • Aggressive Competitors for loans • Bank Regulation • The Cost of Compliance with New Regulations • Interest Rate Risk • Global Economics • Slow Industry Consolidation • Dysfunction in Washington


32 | September 2015

WHAT KEEPS US UP AT NIGHT?

• Big Banks – Aggressive banking in Community Bank space – Bad Reputations

• Technology and Banking – New competitors like Google and Apple – Non bank lenders

• Bank Operations and Efficiency – Managing multiple delivery channels

• Enterprise Risk Management – Many threats, so little time


33 | September 2015

CHALLENGES WITHIN BANK STRATEGIES


34 | September 2015

FINANCIALS


35 | September 2015

TOTAL ASSETS ($000’S)

$1,200,000

$1,700,000

$2,200,000

$2,700,000

$3,200,000

$3,700,000

$4,200,000

2010 2011 2012 2013 2014 Q2 2015

$2,189,789

$2,555,597 $2,609,269 $2,744,066

$3,912,358 $3,893,855

Data as of 06.30.2015


36 | September 2015

CAPITAL RATIOS ($000’S)

Data as of 06.30.2015

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

2010 2011 2012 2013 2014 Q2 2015

12.10% 12.90% 12.70% 13.30% 13.50% 14.40%

13.90% 14.20% 13.90% 14.50% 14.80%

15.60% 15.20%

8.50% 7.90% 8.20% 8.60%

9.00% 9.40%

Common Equity Tier 1 Tier 1 Total Risk Based Tangible Common


37 | September 2015

NET INCOME ($000’S)

Data as of 06.30.2015

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2010 2011 2012 2013 2014 2015 $1,558 $2,800 $3,931

$8,477 $7,365 $8,336 $1,320

$2,771

$5,321

$6,325 $4,859

$11,366

$1

$6,470

$5,020

$7,361

$8,234

$3,126

$6,549 $4,722

$5,236 $5,650

Q1 Q2 Q3 Q4


38 | September 2015

NET INTEREST MARGIN

Data as of 06.30.2015

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

2010 2011 2012 2013 2014 Q2 2015

0.56% 0.34% 0.20% 0.15% 0.12% 0.15%

4.45% 4.43%

4.32% 4.18% 4.17% 4.35%

Wtd. Avg. Deposit Rate Net Interest Margin


39 | September 2015

NON INTEREST INCOME ($000’S)

Data as of 06.30.2015

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

2010 2011 2012 2013 2014 2015

$7,547 $9,350 $8,265 $7,352 $8,295 $10,180

$7,872 $8,251 $10,577

$9,127 $7,877

$12,080

$7,163 $7,198

$9,127 $10,131

$8,589

$9,881

$10,489

$10,011 $10,219

$9,755

Q1 Q2 Q3 Q4

*2010 & 2011 have been adjusted to remove Bargain Purchase Gains


40 | September 2015

EFFICIENCY RATIO (FULLY TAXABLE EQUIVALENT)

Data as of 06.30.2015

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

2010 2011 2012 2013 2014 Q2 2015

62.5% 60.9%

70.2%

67.3%

71.2%

62.4%


41 | September 2015

DILUTED EARNINGS PER SHARE

Data as of 06.30.2015

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

2010 2011 2012 2013 2014 2015 $0.10 $0.17 $0.25

$0.53 $0.45 $0.36 $0.08 $0.17

$0.33

$0.39 $0.30 $0.49

$0.40

$0.31

$0.45

$0.50

$0.20

$0.41 $0.29

$0.32

$0.25

Q1 Q2 Q3 Q4


42 | September 2015

DIVIDENDS PER SHARE

Data as of 06.30.2015

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

2010 2011 2012 2013 2014 2015

0.13 0.09 0.09 0.09 0.11 0.11

0.09

0.09 0.09 0.11 0.11 0.13

0.09

0.09 0.09 0.11

0.11

0.09

0.09 0.09

0.11 0.11

Q1 Q2 Q3 Q4


43 | September 2015

NON-PERFORMING ASSETS TO TOTAL ASSETS

Data as of 06.30.2015

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

2010 2011 2012 2013 2014 Q2 2015

3.92% 3.99%

3.07%

2.17%

1.34% 1.16%


44 | September 2015

ALLOWANCE FOR LOAN LOSSES TO TOTAL LOANS

Data as of 06.30.2015

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2010 2011 2012 2013 2014 Q2 2015

3.00% 2.96% 2.73%

2.29%

1.60% 1.48%


45 | September 2015

ORIGINATED ALLL TO TOTAL ORIGINATED LOANS

Data as of 06.30.2015

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2010 2011 2012 2013 2014 Q2 2015

3.07% 3.10%

2.54%

2.11% 1.85%

1.66%


46 | September 2015

ANNUALIZED NET CHARGE-OFFS TO AVG LOANS

Data as of 06.30.2015 -0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

2010 2011 2012 2013 2014 Q2 2015

2.07%

1.35%

0.82%

0.23% -0.13% 0.07%


47 | September 2015

Data as of 06.30.2015

RETURN ON AVERAGE ASSETS

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

2010 2011 2012 2013 2014 Q2 2015

0.27%

0.82% 0.75%

1.04%

0.87%

1.17%


48 | September 2015

Data as of 06.30.2015

RETURN ON AVERAGE SHAREHOLDER’S EQUITY

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2010 2011 2012 2013 2014 Q2 2015

2.94%

8.93% 8.44%

11.34%

8.67%

10.56%

TRICO BANCSHARES IS COMMITTED TO:

Improving the financial success and well-being of our shareholders, customers,

communities and employees.

Documents

Richard P. Smith, President & CEO Thomas J. Reddish ......Sep 15, 2015 · Raymond James 2015 U.S. Bank Conference Richard P. Smith, President & CEO Thomas J. Reddish, Executive Vice