TriCo Bancshares Announces Quarterly Results

CHICO, Calif.--()--TriCo Bancshares (NASDAQ: TCBK) (the "Company"), parent company of Tri Counties Bank, today announced earnings of $12,199,000, or $0.53 per diluted share, for the three months ended September 30, 2016. For the three months ended September 30, 2015 the Company reported earnings of $12,694,000, or $0.55 per diluted share. Diluted shares outstanding were 23,098,534 and 23,005,980 for the three months ended September 30, 2016 and 2015, respectively.

The following is a summary of the components of the Company’s consolidated net income, average common shares, and average diluted common shares outstanding for the periods indicated:

    Three months ended        
September 30,
(dollars and shares in thousands) 2016     2015

$ Change

% Change
Net Interest Income $ 42,270 $ 39,993 $ 2,277 5.7 %
Reversal of provision for loan losses 3,973 866 3,107
Noninterest income 11,066 11,642 (576 ) (4.9 %)
Noninterest expense (37,416 ) (31,439 ) (5,977 ) 19.0 %
Provision for income taxes   (7,694 )   (8,368 )   674   (8.1 %)
Net income $ 12,199   $ 12,694  

$

(495

) (3.9 %)
 
Average common shares 22,825 22,757 68 0.3 %
Average diluted common shares 23,099 23,006 93 0.4 %
 

The following is a summary of certain of the Company’s consolidated assets and deposits as of the dates indicated:

Ending balances     As of September 30,        
($'s in thousands) 2016     2015    

$ Change

    % Change
Total assets $ 4,467,131     $ 4,021,628 $ 445,503 11.1 %
Total loans 2,712,226 2,469,566 242,660 9.8 %
Total investments 1,168,314 1,097,368 70,946 6.5 %
Total deposits $ 3,836,012 $ 3,457,872 $ 378,140 10.9 %
 
 
Qtrly Avg balances As of September 30,
($'s in thousands) 2016     2015    

$ Change

    % Change
Total assets $ 4,407,322 $ 3,953,292 $ 454,030 11.5 %
Total loans 2,669,954 2,427,670 242,284 10.0 %
Total investments 1,199,941 1,093,845 106,096 9.7 %
Total deposits $ 3,784,748 $ 3,390,229 $ 394,519 11.6 %
 

Included in the period ending balances and quarterly average balances is the addition of a $45 million certificate of deposit from the State of California on September 16, 2015, bringing the total of such certificates of deposit from the State of California to $50 million, and the addition of deposits from the acquisition of three bank branches from Bank of America, that totaled $161 million on the date of acquisition, March 18, 2016. These three acquired branches are located in the cities of Arcata, Eureka, and Fortuna in Humboldt County, California. The Bank paid $3,204,000 for deposit relationships with balances of $161,231,000, loans with balances of $289,000, premises and equipment valued at $1,590,000, other assets valued at $141,000, and recorded a core deposit intangible asset of $2,046,000 and goodwill of $849,000.

Also included in the Company’s results of operations for the three months ended September 30, 2016 is the impact of the sale on August 22, 2016, of two performing loans with recorded book value of $166,000, and 48 nonperforming loans with recorded book value, including pre-sale write downs and purchase discounts, of approximately $2,757,000. The loans sold on August 22, 2016 had contractual amounts outstanding of $6,558,000. Net sale proceeds of $4,980,000 resulted in the recovery of loan balances previously charged off of $1,727,000, additional loan charge offs of $159,000, and interest income of $488,000 from the recovery of interest payments previously applied to principal balances.

Also included in the Company’s results of operations for the three and nine months ended September 30, 2016 is the impact of the purchase, on May 19, 2016 of seven performing multi-family commercial real estate loans valued at $22,503,000, and the sale, on March 31, 2016, of twenty-seven nonperforming loans, nine substandard performing loans, and three purchased credit impaired loans with total recorded book value of approximately $24,810,000.

Loans acquired through purchase, or acquisition of other banks, are classified by the Company as Purchased Not Credit Impaired (PNCI), Purchased Credit Impaired – cash basis (PCI – cash basis), or Purchased Credit Impaired – other (PCI – other). Loans not acquired in an acquisition or otherwise “purchased” are classified as “originated”. Often, such purchased loans are purchased at a discount to face value, and part of this discount is accreted into (added to) interest income over the remaining life of the loan. A loan may also be purchased at a premium to face value, in which case, the premium is amortized into (subtracted from) interest income over the remaining life of the loan. Generally, as time goes on, the effects of loan discount accretion and loan premium amortization decrease as the purchased loans mature or pay off early. Upon the early pay off of a loan, any remaining (unaccreted) discount or (unamortized) premium is immediately taken into interest income; and as loan payoffs may vary significantly from quarter to quarter, so may the impact of discount accretion and premium amortization on interest income. Further details regarding interest income from loans, including fair value discount accretion, may be found under the heading “Supplemental Loan Interest Income Data” in the Consolidated Financial Data table at the end of this press release.

The Company’s primary source of revenue is net interest income, or the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities. Included in the Company’s net interest income is interest income from municipal bonds that is almost entirely exempt from Federal income tax. These municipal bonds are classified as investments – nontaxable, and the Company may present the interest income from these bonds on a fully tax equivalent (FTE) basis. Following is a summary of the components of net interest income for the periods indicated (dollars in thousands):

    Three months ended        
September 30,
(dollars and shares in thousands) 2016     2015

$ Change

% Change
Interest income $ 43,709 $ 41,332 $ 2,377 5.8 %
Interest expense (1,439 ) (1,339 ) (100 ) 7.5 %
FTE adjustment   587     299     287   96.1 %
Net interest income (FTE) $ 42,857   $ 40,292   $ 2,564   6.4 %
Net interest margin (FTE)   4.23 %   4.46 %
 
Purchased loan discount accretion:
Amount $ 2,229 $ 3,125
Effect on average loan yield 0.34 % 0.51 %
Effect on net interest margin (FTE) 0.22 % 0.35 %
Interest income recovered via loan sales:
Amount $ 488 $ 0
Effect on average loan yield 0.07 % 0.00 %
Effect on net interest margin (FTE) 0.05 % 0.00 %
 

Net interest income (FTE) during the three months ended September 30, 2016 increased $2,564,000 (6.4%) from the same period in 2015 to $42,857,000. The increase in net interest income (FTE) was primarily due to a $242,284,000 (10.0%) increase in the average balance of loans to $2,669,954,000, and a $61,996,000 (95.5%) increase in the average balance of investments – nontaxable to $126,910,000 that were partially offset by a 21 basis point decrease in the average yield on loans from 5.57% during the three months ended September 30, 2015 to 5.36% during the three months ended September 30, 2016, and a 20 basis point decrease in the average yield on investments – taxable from 2.69% during the three months ended September 30, 2015 to 2.49% during the three months ended September 30, 2016. The decrease in average loan yields is primarily due to declines in market yields on new and renewed loans compared to yields on repricing, maturing, and paid off loans. The decrease in the average yield of investments - taxable is primarily due to declines in market yields on new investments compared to yields on existing investments, and to recent declines in mortgage rates that lead to an increase in mortgage refinancing activity that in turn lead to faster estimated mortgage prepayment speeds and an accelerated level of interest income-reducing premium amortization on existing mortgage backed investment securities. The increases in average loan and investments - nontaxable balances added $3,374,000 and $761,000, respectively, to net interest income (FTE) while the decreases in average loan and investments- taxable yields reduced net interest income (FTE) by $1,419,000 and $533,000, respectively, when compared to the year-ago quarter. Included in interest income from loans during the three months ended September 30, 2016 was $2,229,000 of discount accretion from purchased loans compared to $3,125,000 of discount accretion from purchased loans during the three months ended September 30, 2015. Included in interest income from loans during the three months ended September 30, 2016 was $488,000 of interest income that was previously applied to the principal balance of loans in nonaccrual status that were sold during the three months ended September 30, 2016. For more information related to loan interest income, including loan purchase discount accretion, see the Supplemental Loan Interest Income Data in the tables at the end of this announcement.

The following table shows the components of net interest income and net interest margin on a fully tax-equivalent (FTE) basis for the periods indicated:

ANALYSIS OF CHANGE IN NET INTEREST MARGIN ON EARNING ASSETS
(unaudited, dollars in thousands)
   

Three Months Ended

   

Three Months Ended

   

Three Months Ended

September 30, 2016

June 30, 2016

September 30, 2015

Average     Income/     Yield/ Average     Income/     Yield/ Average     Income/     Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
Assets
Earning assets
Loans $ 2,669,954 $ 35,769 5.36 % $ 2,579,774 $ 34,338 5.32 % $ 2,427,670 $ 33,814 5.57 %
Investments - taxable 1,073,030 6,687 2.49 % 1,085,230 6,945 2.56 % 1,028,931 6,923 2.69 %
Investments - nontaxable 126,910 1,565 4.93 % 126,326 1,560 4.94 % 64,914 797 4.91 %
Cash at Federal Reserve and other banks   185,552       275   0.59 %   247,398       332   0.54 %   95,397       97   0.41 %
Total earning assets 4,055,446   44,296   4.37 % 4,038,728   43,175   4.28 % 3,616,912   41,631   4.60 %
Other assets, net   351,875   349,222   336,380
Total assets $ 4,407,322 $ 4,387,950 $ 3,953,292
Liabilities and shareholders' equity
Interest-bearing
Demand deposits $ 888,377 111 0.05 % $ 886,417 120 0.05 % $ 813,581 117 0.06 %
Savings deposits 1,357,359 426 0.13 % 1,354,846 423 0.12 % 1,178,684 368 0.12 %
Time deposits 340,709 338 0.40 % 350,215 338 0.39 % 324,427 353 0.44 %
Other borrowings 18,951 2 0.05 % 19,152 3 0.06 % 6,994 1 0.05 %
Trust preferred securities   56,584       562   3.97 %   56,544       546   3.86 %   56,394       500   3.55 %
Total interest-bearing liabilities 2,661,981   1,439   0.22 % 2,667,174   1,430   0.21 % 2,380,081   1,339   0.23 %
Noninterest-bearing deposits 1,198,302 1,186,958 1,073,537
Other liabilities 66,464 62,456 60,314
Shareholders' equity   480,575   471,362   439,360
Total liabilities and shareholders' equity $ 4,407,322 $ 4,387,950 $ 3,953,292
Net interest rate spread 4.15 % 4.07 % 4.37 %
Net interest income/net interest margin (FTE)   42,857   4.23 %   41,745   4.13 %   40,292   4.46 %
FTE adjustment   (587 )   (585 )   (299 )
Net interest income (not FTE) $ 42,270   $ 41,160   $ 39,993  
 

The Company recorded a reversal of provision for loan losses of $3,973,000 during the three months ended September 30, 2016 compared to a reversal of provision for loan losses of $866,000 during the three months ended September 30, 2015. The $3,973,000 reversal of provision for loan losses during the three months ended September 30, 2016 was primarily due to net loan recoveries of $1,568,000 associated with the sale of loans on August 22, 2016, additional net loan recoveries of $380,000 during the three months ended September 30, 2016, net credit quality upgrades of substandard performing loans, and continued low historical loan loss experience, that were partially offset by the effect of a $58,596,000 (2.2%) increase in loan balances during the three months ended September 30, 2016. A $30,465,000 (20.4%) decrease in construction loans outstanding during the three months ended September 30, 2016 also contributed to a decrease in the required allowance for loan losses at September 30, 2016, and the reversal of provision for loan losses during the three months ended September 30, 2016.

During the three months ended September 30, 2016 nonperforming loans increased $975,000 (4.9%) to $20,952,000, and represented a decrease from 1.47% of loans outstanding as of December 31, 2015, and an increase from 0.75% of loans outstanding at June 30, 2016, to 0.77% of loans outstanding as of September 30, 2016. The increase in nonperforming loans during the three months ended September 30, 2016 was due primarily to a $5,200,000 commercial real estate loan being put on nonaccrual status that was partially offset by the sale of $2,757,000 of nonperforming loans on August 22, 2016. The $5,200,000 commercial real estate loan referred to above is located in Central California, and is an owner-occupied SBA 504 loan collateralized by an industrial warehouse building.

The following table presents the key components of noninterest income for the periods indicated:

    Three months ended        
September 30,
(dollars in thousands) 2016     2015

$ Change

% Change
Service charges on deposit accounts $ 3,641 $ 3,642

$

(1

) (0.0 %)
ATM fees and interchange 3,851 3,344 507 15.2 %
Other service fees 792 772 20 2.6 %
Mortgage banking service fees 537 521 16 3.1 %
Change in value of mortgage servicing rights   (799 )   (585 )   (214 ) 36.6 %
Total service charges and fees   8,022     7,694     328   4.3 %
 
Gain on sale of loans 953 722 231 32.0 %
Commission on NDIP 747 812 (65 ) (8.0 %)
Increase in cash value of life insurance 709 770 (61 ) (7.9 %)
Change in indemnification asset (10 ) (26 ) 16 (61.5 %)
Gain on sale of foreclosed assets 69 356 (287 ) (80.6 %)
Other noninterest income   576     1,314     (738 ) (56.2 %)
Total other noninterest income   3,044     3,948     (904 ) (22.9 %)
Total noninterest income $ 11,066   $ 11,642  

$

(576

) (4.9 %)
 

Noninterest income decreased $576,000 (4.9%) to $11,066,000 during the three months ended September 30, 2016 compared to the three months ended September 30, 2015. The decrease in noninterest income was primarily due to a $738,000 decrease in other noninterest income, a $287,000 decrease in gain on sale of foreclosed assets, and a $214,000 decrease in change in value of mortgage servicing rights, that were partially offset by a $507,000 increase in ATM fees and interchange revenue, and a $231,000 increase in gain on sale of loans. The $738,000 decrease in other noninterest income was primarily due to the recovery, during the three months ended September 30, 2015, of $870,000 of recoveries of loans from acquired institutions that were charged off prior to acquisition of those institutions by the Company. As such, these “pre-acquisition charge offs” were properly not recorded by the Company, and any related recoveries are recorded in other noninterest income by the Company. Such recoveries are unusual, and none occurred during the three months ended September 30, 2016. The $287,000 decrease in gain on sale of foreclosed assets was due to a decrease in the number and balance of foreclosed assets, and the relative valuations of foreclosed assets during the three months ended September 30, 2016 compared to the three months ended September 30, 2015. The $214,000 decrease in change in value of mortgage servicing rights (MSRs) is primarily due to a change in the required rate of return on MSRs by market participants that reduced the value of such MSRs during the three months ended September 30, 2016 compared to a smaller decrease in the value of MSRs during the three months ended September 30, 2015 that was primarily due to a decrease in estimated future MSR cash flows as a result of reduced mortgage rates and higher rates of early mortgage payoffs from mortgage refinancing. The $507,000 increase in ATM fees and interchange revenue was primarily due to the Company’s increased focus in this area, including the introduction of new services in this area during the quarter ended March 31, 2016. The $231,000 increase in gain on sale of loans was due to continued high levels of refinance and home purchase activity, and increased focus in this area by the Company when compared to the year-ago quarter. The changes in noninterest income include the effects from the operation of three branches, including $161,231,000 of deposits, acquired from Bank of America on March 18, 2016.

The following table presents the key components of the Company’s noninterest expense for the periods indicated:

    Three months ended        
September 30,
(dollars in thousands) 2016     2015

$ Change

% Change

Base salaries, overtime and temporary help, net of deferred loan origination costs

$ 13,419 $ 11,562 $ 1,857 16.1 %
Commissions and incentives 2,798 1,674 1,124 67.1 %
Employee benefits   4,644   4,297     347   8.1 %
Total salaries and benefits expense   20,861   17,533     3,328   19.0 %
 
Occupancy 2,667 2,599 68 2.6 %
Equipment 1,607 1,417 190 13.4 %
Change in reserve for unfunded commitments 25 (40 ) 65 (162.5 %)
Data processing and software 2,068 1,869 199 10.6 %
Telecommunications 702 658 44 6.7 %
ATM network charges 1,133 757 376 49.7 %
Professional fees 1,018 999 19 1.9 %
Advertising and marketing 1,049 926 123 13.3 %
Postage 381 314 67 21.3 %
Courier service 280 303 (23 ) (7.6 %)
Intangible amortization 359 290 69 23.8 %
Operational losses 497 201 296 147.3 %
Provision for foreclosed asset losses 9 106 (97 ) (91.5 %)
Foreclosed asset expense 37 105 (68 ) (64.8 %)
Assessments 654 642 12 1.9 %
Write down of fixed asset 716 - 716
Miscellaneous other expense   3,353   2,760     593   21.5 %
Total other noninterest expense   16,555   13,906     2,649   19.0 %
Total noninterest expense $ 37,416 $ 31,439   $ 5,977   19.0 %
 
Average full time equivalent employees 1,022 934 88 9.4 %
 

Salary and benefit expenses increased $3,328,000 (19.0%) to $20,861,000 during the three months ended September 30, 2016 compared to $17,533,000 during the three months ended September 30, 2015. Base salaries, overtime and temporary help, net of deferred loan origination costs increased $1,857,000 (16.1%) to $13,419,000. Base salaries, net of deferred loan origination costs increased $1,502,000 (13.4%) to $12,747,000 primarily due to annual merit increases, and an increase in average full-time equivalent employees of 88 (9.4%) to 1,022 for the three months ended September 30, 2016. Overtime expense increased $107,000 to $405,000 during the three months ended September 30, 2016. Temporary help expense increased $248,000 to $267,000 during the three months ended September 30, 2016. During the three months ended September 30, 2016, the Company incurred $109,000 of nonrecurring overtime expense and $179,000 of nonrecurring temporary help expense related to various information and customer service system conversions. These system conversions were initiated during the three months ended September 2016, and were completed on October 24, 2016.

Commissions and incentive compensation increased $1,124,000 (67.1%) to $2,798,000 during the three months ended September 30, 2016. All categories of incentive compensation expense were higher than the year-ago quarter except commission expense related to the sale of nondeposit investment products. The increases in the other categories of incentive compensation, compared to the year-ago quarter, were primarily due to increased loan production and other performance measures to which incentive compensation is tied compared to such measures in the year-ago quarter.

Benefits & other compensation expense increased $347,000 (8.1%) to $4,644,000 during the three months ended September 30, 2016 primarily due to the increases in average full-time equivalent employees and salaries expense, and their effects on group insurance and employer payroll tax expenses.

Other noninterest expense increased $2,649,000 (19.0%) to $16,555,000 during the three months ended September 30, 2016 compared to the three months ended September 30, 2015. The $2,649,000 increase in other noninterest expense was primarily due to a $716,000 expense related to a closed branch building, the value of which was written down to current market value, and subsequently sold during the three months ended September 30, 2016, a $593,000 increase in miscellaneous other expense, a $376,000 increase in ATM network charges, a $296,000 increase in operational losses, a $199,000 increase in data processing and software expense, and a $190,000 increase in Equipment expense.

The $593,000 increase in miscellaneous other noninterest expense included a $126,000 (69.8%) increase in debit card production and transaction processing expense, and a $98,000 (30.4%) increase in business meals and travel expense. Small increases in many other types of miscellaneous other noninterest expense accounted for the rest of the $593,000 increase in miscellaneous other noninterest expense. Included in miscellaneous other noninterest expense for the three months ended September 30, 2016 were $25,000 of nonrecurring training and business travel expenses related to the system conversions noted above. Included in other noninterest expense for the three months ended September 30, 2016 were $36,000 of nonrecurring ATM network charges related to the system conversions noted above.

The $296,000 increase in operational losses was primarily due to an increase in losses from fraudulent ATM and point of sale transactions.

The $199,000 increase in data processing and software expense was primarily due to increased use of outsourced data processing services. The $190,000 increase in equipment expense was primarily due to increased depreciation and rental expense from recently purchased and rented equipment and furniture.

Richard Smith, President and CEO of the Company commented, “We are pleased with the operating results in the quarter. During the third quarter many significant projects were implemented which were necessary to build out our technology infrastructure to facilitate our growth and expansion. We transferred our core system software to an outsourced solution along with our debit and ATM card services, and introduced a new business online and mobile banking solution for our customers. These system changes are major steps in our efforts to provide competitive new solutions and operating efficiencies for our company.”

Smith added, “While technology projects dominated our workload during the quarter, core banking activities remained very active. Loan demand and loan balances continue to increase at a strong annual pace. In addition, our strong deposit market share continues to increase in the majority of the counties we serve in Northern California.”

In addition to the historical information contained herein, this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to various uncertainties and risks that could affect their outcome. The Company’s actual results could differ materially. Factors that could cause or contribute to such differences include, but are not limited to, variances in the actual versus projected growth in assets, return on assets, interest rate fluctuations, economic conditions in the Company's primary market area, demand for loans, regulatory and accounting changes, loan losses, expenses, rates charged on loans and earned on securities investments, rates paid on deposits, competitive effects, fee and other noninterest income earned, the outcome of litigation, as well as other factors detailed in the Company's reports filed with the Securities and Exchange Commission which are incorporated herein by reference, including the Form 10-K for the year ended December 31, 2015. These reports and this entire press release should be read to put such forward-looking statements in context and to gain a more complete understanding of the uncertainties and risks involved in the Company's business. The Company does not intend to update any of the forward-looking statements after the date of this release.

Established in 1975, Tri Counties Bank is a wholly-owned subsidiary of TriCo Bancshares (NASDAQ: TCBK) headquartered in Chico, California, providing a unique brand of customer Service with Solutions available in traditional stand-alone and in-store bank branches in communities throughout Northern and Central California. Tri Counties Bank provides an extensive and competitive breadth of consumer, small business and commercial banking financial services, along with convenient around-the-clock ATM, online and mobile banking access. Brokerage services are provided by the Bank’s investment services through affiliation with Raymond James Financial Services, Inc. Visit www.TriCountiesBank.com to learn more.

   
TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA
(Unaudited. Dollars in thousands, except share data)
Three months ended
September 30,     June 30,     March 31,     December 31,     September 30,
2016     2016     2016     2015     2015
Statement of Income Data
Interest income $ 43,709 $ 42,590 $ 42,794 $ 42,490 $ 41,332
Interest expense 1,439 1,430 1,392 1,349 1,339
Net interest income 42,270 41,160 41,402 41,141 39,993
(Benefit from reversal of) provision for loan losses (3,973 ) (773 ) 209 (908 ) (866 )
Noninterest income:
Service charges and fees 8,022 8,099 7,305 7,935 7,694
Other income 3,044 3,146 2,485 3,510 3,948
Total noninterest income 11,066 11,245 9,790 11,445 11,642
Noninterest expense:

Base salaries net of deferred loan origination costs

13,419 12,968 12,708 12,014 11,562
Incentive compensation expense 2,798 2,471 1,739 2,304 1,674

Employee benefits and other compensation expense

4,644 4,606 4,818 4,212 4,297
Total salaries and benefits expense 20,861 20,045 19,265 18,530 17,533
Other noninterest expense 16,555 18,222 14,486 16,154 13,906
Total noninterest expense 37,416 38,267 33,751 34,684 31,439
Income before taxes 19,893 14,911 17,232 18,810 21,062
Net income $ 12,199 $ 9,405 $ 10,674 $ 11,422 $ 12,694
Share Data
Basic earnings per share $ 0.53 $ 0.41 $ 0.47 $ 0.50 $ 0.56
Diluted earnings per share $ 0.53 $ 0.41 $ 0.46 $ 0.50 $ 0.55
Book value per common share $ 21.11 $ 20.76 $ 20.34 $ 19.85 $ 19.48
Tangible book value per common share $ 17.99 $ 17.63 $ 17.18 $ 16.81 $ 16.42
Shares outstanding 22,827,277 22,822,325 22,785,173 22,775,173 22,764,295
Weighted average shares 22,824,868 22,802,653 22,782,865 22,769,793 22,757,453
Weighted average diluted shares 23,098,534 23,070,151 23,046,165 23,055,900 23,005,980
Credit Quality
Nonperforming originated loans $ 13,083 $ 10,022 $ 12,660 $ 22,824 $ 24,052
Total nonperforming loans 20,952 19,977 24,034 37,119 38,898
Foreclosed assets, net of allowance 4,124 3,842 4,471 5,369 5,285
Loans charged-off 664 641 1,289 380 687
Loans recovered $ 2,612 $ 536 $ 1,457 $ 781 $ 2,616
Selected Financial Ratios
Return on average total assets 1.11 % 0.86 % 1.01 % 1.11 % 1.28 %
Return on average equity 10.15 % 7.98 % 9.25 % 10.14 % 11.56 %
Average yield on loans 5.36 % 5.32 % 5.48 % 5.60 % 5.57 %
Average yield on interest-earning assets 4.37 % 4.28 % 4.47 % 4.53 % 4.60 %
Average rate on interest-bearing liabilities 0.22 % 0.21 % 0.22 % 0.22 % 0.23 %
Net interest margin (fully tax-equivalent) 4.23 % 4.13 % 4.33 % 4.39 % 4.46 %
Supplemental Loan Interest Income Data:
Discount accretion PCI - cash basis loans $ 777 $ 426 $ 269 $ 302 $ 445
Discount accretion PCI - other loans 569 415 (45 ) 1,392 1,090
Discount accretion PNCI loans 883 1,459 868 573 1,590
All other loan interest income $ 33,540 32,038 33,646 32,571 30,689
Total loan interest income $ 35,769 $ 34,338 $ 34,738 $ 34,838 $ 33,814
 
   
TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA
(Unaudited. Dollars in thousands)
Three months ended
September 30,     June 30,     March 31,     December 31,     September 30,
Balance Sheet Data 2016     2016     2016     2015     2015
Cash and due from banks $ 315,088 $ 216,786 $ 388,878 $ 303,461 $ 209,298
Securities, available for sale 510,209 529,017 477,454 404,885 329,361
Securities, held to maturity 641,149 674,412 705,133 726,530 751,051
Restricted equity securities 16,956 16,956 16,956 16,956 16,956
Loans held for sale 7,777 2,904 2,240 1,873 5,152
Loans:
Commercial loans 217,110 209,840 197,695 194,913 199,330
Consumer loans 377,016 381,114 401,076 395,283 403,081
Real estate mortgage loans 1,998,913 1,913,024 1,813,933 1,811,832 1,757,082
Real estate construction loans 119,187 149,652 128,843 120,909 110,073
Total loans, gross 2,712,226 2,653,630 2,541,547 2,522,937 2,469,566
Allowance for loan losses (33,484 ) (35,509 ) (36,388 ) (36,011 ) (36,518 )
Foreclosed assets 4,124 3,842 4,471 5,369 5,285
Premises and equipment 49,448 51,728 51,522 43,811 42,334
Cash value of life insurance 95,281 94,572 95,256 94,560 94,458
Goodwill 64,311 64,311 64,311 63,462 63,462
Other intangible assets 6,923 7,282 7,641 5,894 6,184
Mortgage servicing rights 6,208 6,720 7,140 7,618 7,467
Accrued interest receivable 10,819 11,602 11,075 10,786 10,212
Other assets 60,096 54,239 57,720 48,591 47,360
Total assets $ 4,467,131 4,352,492 4,394,956 4,220,722 4,021,628
Deposits:
Noninterest-bearing demand deposits 1,221,503 1,181,702 1,178,001 1,155,695 1,100,607
Interest-bearing demand deposits 910,638 867,638 884,638 853,961 817,034
Savings deposits 1,366,892 1,346,269 1,368,644 1,281,540 1,187,238
Time certificates 336,979 345,787 353,757 340,070 352,993
Total deposits 3,836,012 3,741,396 3,785,040 3,631,266 3,457,872
Accrued interest payable 774 727 751 774 795
Reserve for unfunded commitments 2,908 2,883 2,475 2,475 2,085
Other liabilities 69,695 57,587 68,064 65,293 53,681
Other borrowings 19,235 19,464 18,671 12,328 6,859
Junior subordinated debt 56,617 56,567 56,519 56,470 56,991
Total liabilities 3,985,241 3,878,624 3,931,520 3,768,606 3,578,283
Total shareholders' equity 481,890 473,868 463,436 452,116 443,345

Accumulated other comprehensive gain (loss)

4,953 6,073 1,772 (1,778 ) (2,298 )
Average loans 2,669,954 2,579,774 2,537,574 2,489,406 2,427,670
Average interest-earning assets 4,055,446 4,038,728 3,876,786 3,777,144 3,616,912
Average total assets 4,407,322 4,387,950 4,212,388 4,115,369 3,953,292
Average deposits 3,784,748 3,778,436 3,616,618 3,543,423 3,390,229
Average total equity $ 480,575 $ 471,362 $ 461,520 $ 450,413 $ 439,360
Total risk based capital ratio 14.7 % 14.7 % 15.1 % 15.1 % 15.2 %
Tier 1 capital ratio 13.6 % 13.6 % 13.9 % 13.8 % 13.9 %
Tier 1 common equity ratio 12.0 % 12.0 % 12.3 % 12.2 % 12.3 %
Tier 1 leverage ratio 10.6 % 10.4 % 10.7 % 10.8 % 11.0 %
Tangible capital ratio 9.3 % 9.4 % 9.1 % 9.2 % 9.5 %

Contacts

TriCo Bancshares
Richard P. Smith, 530-898-0300
President & CEO

Release Summary

TriCo Bancshares Announces Quarterly Results

Contacts

TriCo Bancshares
Richard P. Smith, 530-898-0300
President & CEO