TriCo Bancshares Announces Quarterly and Annual Results

CHICO, Calif.--()--TriCo Bancshares (NASDAQ: TCBK) (the "Company"), parent company of Tri Counties Bank, today announced earnings of $12,533,000, or $0.54 per diluted share, for the three months ended December 31, 2016. For the three months ended December 31, 2015 the Company reported earnings of $11,422,000, or $0.50 per diluted share. Diluted shares outstanding were 23,115,708 and 23,055,900 for the three months ended December 31, 2016 and 2015, respectively.

For the year ended December 31, 2016 the Company reported earnings of $44,811,000, or $1.94 per diluted share.
For the year ended December 31, 2015 the Company reported earnings of $43,818,000, or $1.91 per diluted share.

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    
December 31,
(dollars and shares in thousands)   2016       2015  

$ Change

% Change
Net Interest Income $ 43,155 $ 41,141 $ 2,014 4.9 %
Reversal of provision for loan losses 1,433 908 525
Noninterest income 12,462 11,445 1,017 8.9 %
Noninterest expense (36,563 ) (34,684 ) (1,879 ) 5.4 %
Provision for income taxes   (7,954 )   (7,388 )   (566 ) 7.7 %
Net income $ 12,533   $ 11,422   $ 1,111   9.7 %
 
Average common shares 22,846 22,770 76 0.3 %
Average diluted common shares 23,116 23,056 60 0.3 %
 

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

Ending balances   As of December 31,    
($'s in thousands) 2016   2015  

$ Change

  % Change
Total assets $ 4,517,968   $ 4,220,722 $ 297,246 7.0 %
Total loans 2,759,593 2,522,937 236,656 9.4 %
Total investments 1,169,725 1,148,371 21,354 1.9 %
Total deposits $ 3,895,560 $ 3,631,266 $ 264,294 7.3 %
 
 
Qtrly Avg balances As of December 31,
($'s in thousands) 2016   2015  

$ Change

  % Change
Total assets $ 4,445,310 $ 4,115,369 $ 329,941 8.0 %
Total loans 2,695,743 2,489,406 206,337 8.3 %
Total investments 1,174,705 1,112,992 61,713 5.5 %
Total deposits $ 3,820,773 $ 3,543,423 $ 277,350 7.8 %
 

Included in the period ending balances and quarterly average balances is 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 December 31, 2016 is the impact of the sale on December 28, 2016, of twenty performing loans with recorded book value of $1,975,000, and 49 nonperforming loans with recorded book value, including pre-sale write downs and purchase discounts, of approximately $2,709,000. The loans sold on December 28, 2016 had contractual amounts outstanding of $7,100,000. Net sale proceeds of $5,851,000 resulted in the recovery of loan balances previously charged off of $692,000, additional loan charge offs of $316,000, interest income of $586,000 from the recovery of interest payments previously applied to principal balances, and gain on sale of $205,000. In addition, associated with the loans sold on December 28, 2016 were specific allowances for loan loss of $503,000 on September 30, 2016 that were no longer necessary at December 31, 2016; and had these loans not been sold, it is expected that the allowance for loan losses would have been approximately $503,000 higher than reported at December 31, 2016, and the reversal of provision for loan losses for the three months ended December 31, 2016 would have been approximately $503,000 less than reported.

Also included in the Company’s results of operations for the three and twelve months ended December 31, 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 twelve months ended December 31, 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.

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    
December 31,
(dollars and shares in thousands)   2016       2015  

$ Change

% Change
Interest income $ 44,615 $ 42,490 $ 2,125 5.0 %
Interest expense (1,460 ) (1,349 ) (111 ) 8.2 %
FTE adjustment   619     315     304   96.5 %
Net interest income (FTE) $ 43,774   $ 41,456   $ 2,318   5.6 %
Net interest margin (FTE)   4.28 %   4.39 %
 
Purchased loan discount accretion:
Amount $ 1,778 $ 2,267
Effect on average loan yield 0.27 % 0.37 %
Effect on net interest margin (FTE) 0.17 % 0.24 %
Interest income recovered via loan sales:
Amount $ 586 $ 0
Effect on average loan yield 0.09 % 0.00 %
Effect on net interest margin (FTE) 0.06 % 0.00 %
 

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

December 31, 2016

September 30, 2016

December 31, 2015

Average   Income/   Yield/ Average   Income/   Yield/ Average   Income/   Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
Assets
Earning assets
Loans $ 2,695,743 $ 36,241 5.38 % $ 2,669,954 $ 35,769 5.36 % $ 2,489,406 $ 34,838 5.60 %
Investments - taxable 1,042,763 7,026 2.70 % 1,073,030 6,687 2.49 % 1,044,063 6,983 2.68 %
Investments - nontaxable 131,942 1,650 5.00 % 126,910 1,565 4.93 % 68,929 841 4.88 %
Cash at Federal Reserve and other banks   223,564     317   0.57 %   185,552     275   0.59 %   174,746     143   0.33 %
Total earning assets 4,094,012   45,234   4.42 % 4,055,446   44,296   4.37 % 3,777,144   42,805   4.53 %
Other assets, net   351,298   351,875   338,225
Total assets $ 4,445,310 $ 4,407,322 $ 4,115,369
Liabilities and shareholders' equity
Interest-bearing
Demand deposits $ 887,671 94 0.04 % $ 888,377 111 0.05 % $ 830,172 118 0.06 %
Savings deposits 1,374,059 439 0.13 % 1,357,359 426 0.13 % 1,231,687 388 0.13 %
Time deposits 339,766 339 0.40 % 340,709 338 0.40 % 347,742 337 0.39 %
Other borrowings 19,036 2 0.04 % 18,951 2 0.05 % 10,189 1 0.04 %
Trust preferred securities   56,615     586   4.14 %   56,584     562   3.97 %   56,345     505   3.59 %
Total interest-bearing liabilities 2,677,147   1,460   0.22 % 2,661,981   1,439   0.22 % 2,476,135   1,349   0.22 %
Noninterest-bearing deposits 1,219,276 1,198,302 1,133,822
Other liabilities 69,894 66,464 54,999
Shareholders' equity   478,993   480,575   450,413
Total liabilities and shareholders' equity $ 4,445,310 $ 4,407,322 $ 4,115,369
Net interest rate spread 4.20 % 4.15 % 4.31 %
Net interest income/net interest margin (FTE)   43,774   4.28 %   42,857   4.23 %   41,456   4.39 %
FTE adjustment   ($619 )   (587 )   (315 )
Net interest income (not FTE) $ 43,155   $ 42,270   $ 41,141  
 

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.

Net interest income (FTE) during the three months ended December 31, 2016 increased $2,318,000 (5.6%) from the same period in 2015 to $43,774,000. The increase in net interest income (FTE) was primarily due to a $206,337,000 (8.3%) increase in the average balance of loans to $2,695,743,000, and a $63,013,000 (91.4%) increase in the average balance of investments - nontaxable to $131,942,000 that were partially offset by a 22 basis point decrease in the average yield on loans from 5.60% during the three months ended December 31, 2015 to 5.38% during the three months ended December 31, 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, and despite 25 basis point increases in the Prime lending rate in each of December 2015 and December 2016. The increases in average loan and investments - nontaxable balances added $2,889,000 and $769,000, respectively, to net interest income (FTE) while the decrease in average loan yield reduced net interest income (FTE) by $1,486,000 compared to the year-ago quarter. Included in interest income from loans during the three months ended December 31, 2016 was $1,778,000 of discount accretion from purchased loans compared to $2,267,000 of discount accretion from purchased loans during the three months ended December 31, 2015. Included in interest income from loans during the three months ended December 31, 2016 was $586,000 of interest income that was previously applied to the principal balance of loans in nonaccrual status that were sold during the three months ended December 31, 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 Company recorded a reversal of provision for loan losses of $1,433,000 during the three months ended December 31, 2016 compared to a reversal of provision for loan losses of $908,000 during the three months ended December 31, 2015. The $1,433,000 reversal of provision for loan losses during the three months ended December 31, 2016 was primarily due to net loan recoveries of $376,000 associated with the sale of loans on December 28, 2016, additional net loan recoveries of $76,000 during the three months ended December 31, 2016, net credit quality upgrades, payoffs, and sale of substandard performing loans, and continued low historical loan loss experience, that were partially offset by the effect of a $47,367,000 (1.8%) increase in loan balances during the three months ended December 31, 2016.

During the three months ended December 31, 2016 nonperforming loans decreased $824,000 (3.9%) to $20,128,000, or 0.73% of loans outstanding as of December 31, 2016, and represented a decrease from 0.77% of loans outstanding at September 30, 2016, and a decrease from 1.47% of loans outstanding as of December 31, 2015. The decrease in nonperforming loans during the three months ended December 31, 2016 was due primarily to the sale of $2,709,000 of nonperforming loans on December 28, 2016 that was partially offset by a net increase of $1,885,000 in other nonperforming loans.

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

  Three months ended    
December 31,
(dollars in thousands)   2016       2015  

$ Change

% Change
Service charges on deposit accounts $ 3,816 $ 3,397 $ 419 12.3 %
ATM fees and interchange 4,723 3,635 1,088 29.9 %
Other service fees 752 712 40 5.6 %
Mortgage banking service fees 495 581 (86 ) (14.8 %)
Change in value of mortgage servicing rights   14     (131 )   145   (110.7 %)
Total service charges and fees   9,800     8,194     1,606   19.6 %
 
Gain on sale of loans 1,392 883 509 57.6 %
Commission on NDIP 439 788 (349 ) (44.3 %)
Increase in cash value of life insurance 631 665 (34 ) (5.1 %)
Change in indemnification asset (219 ) (59 ) (160 ) 271.2 %
Gain on sale of foreclosed assets 44 209 (165 ) (78.9 %)
Other noninterest income   375     765     (390 ) (51.0 %)
Total other noninterest income   2,662     3,251     (589 ) (18.1 %)
Total noninterest income $ 12,462   $ 11,445   $ 1,017   8.9 %
 

Noninterest income increased $1,017,000 (8.9%) to $12,462,000 during the three months ended December 31, 2016 compared to the three months ended December 31, 2015. The increase in noninterest income was primarily due to a $1,088,000 increase in ATM fees and interchange income, a $509,000 increase in gain on sale of loans, and a $419,000 increase in service charges on deposit accounts, that were partially offset by a $390,000 decrease in other noninterest income, and a $349,000 decrease in commissions on nondeposit investment products.

The $1,088,000 increase in ATM fees and interchange revenue was due primarily 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 $509,000 increase in gain on sale of loans was due primarily to increased gain on sale of loans originated for sale, and a $205,000 gain on sale of other loans sold on December 28, 2016. The increase in gain on sale of loans originated for sale was due primarily to increased market refinance activity and focus by the Company in this area during the three months ended December 31, 2016 compared to the year-ago period. The $419,000 increase in service charges on deposit accounts was due primarily to increases in certain deposit account fees that were instituted by the Company during the three months ended December 31, 2016, and the effect of service charges on the deposit accounts acquired through the branch purchase on March 18, 2016. The $390,000 decrease in other noninterest income was due primarily to $155,000 of life insurance proceeds in excess of cash value, and a $4,000 loss on disposal of fixed assets recorded during the three months ended December 31, 2015 compared to no life insurance proceeds in excess of cash value, and a $95,000 loss on disposal of fixed assets recorded during the three months ended December 31, 2016.

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

  Three months ended    
December 31,
(dollars in thousands)   2016     2015

$ Change

% Change
Base salaries, overtime and temporary help, net of deferred loan origination costs $ 14,074 $ 12,014 $ 2,060 17.1 %
Commissions and incentives 1,864 2,304 (440 ) (19.1 %)
Employee benefits   4,616     4,212   404   9.6 %
Total salaries and benefits expense   20,554     18,530   2,024   10.9 %
 
Occupancy 2,635 2,569 66 2.6 %
Equipment 1,760 1,639 121 7.4 %
Change in reserve for unfunded commitments (189 ) 390 (579 ) (148.5 %)
Data processing and software 2,580 2,015 565 28.0 %
Telecommunications 664 678 (14 ) (2.1 %)
ATM network charges 1,076 1,097 (21 ) (1.9 %)
Professional fees 2,226 1,392 834 59.9 %
Advertising and marketing 808 1,256 (448 ) (35.7 %)
Postage 417 340 77 22.6 %
Courier service 182 350 (168 ) (48.0 %)
Intangible amortization 360 290 70 24.1 %
Operational losses 558 263 295 112.2 %
Provision for foreclosed asset losses 100 155 (55 ) (35.5 %)
Foreclosed asset expense 69 185 (116 ) (62.7 %)
Assessments 241 585 (344 ) (58.8 %)
Miscellaneous other expense   2,522     2,950   (428 ) (14.5 %)
Total other noninterest expense   16,009     16,154   (145 ) (0.9 %)
Total noninterest expense $ 36,563   $ 34,684 $ 1,879   5.4 %
 
Average full time equivalent employees 1,008 952 56 5.9 %
 

Salary and benefit expenses increased $2,024,000 (10.9%) to $20,554,000 during the three months ended December 31, 2016 compared to $18,530,000 during the three months ended December 31, 2015. Base salaries, overtime and temporary help, net of deferred loan origination costs increased $2,060,000 (17.1%) to $14,074,000. Base salaries, net of deferred loan origination costs increased $1,773,000 (15.2%) to $13,452,000 primarily due to annual merit increases, and an increase in average full-time equivalent employees of 56 (5.9%) to 1,008 for the three months ended December 31, 2016. Overtime expense increased $33,000 to $345,000 during the three months ended December 31, 2016. Temporary help expense increased $255,000 to $278,000 during the three months ended December 31, 2016.

Commissions and incentive compensation decreased $440,000 (19.1%) to $1,864,000 during the three months ended December 31, 2016. All categories of incentive compensation expense were lower than the year-ago quarter except commission expense related to the sale of consumer and small business banking products and services.

Benefits & other compensation expense increased $404,000 (9.6%) to $4,616,000 during the three months ended December 31, 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 decreased $145,000 (0.9%) to $16,009,000 during the three months ended December 31, 2016 compared to the three months ended December 31, 2015. The $145,000 decrease in other noninterest expense was due primarily to decreases in change in reserve for unfunded commitments, advertising and marketing, miscellaneous expense, and assessments of $579,000, $448,000, $428,000, and $344,000, respectively. These decreases from the year-ago period were partially offset by increases in professional fees, data processing and software, and operational losses of $834,000, $565,000, and $295,000, respectively.

The $579,000 decrease in change in reserve for unfunded commitments was due primarily to reduction in construction and other loan commitments during the three months ended December 31, 2016 compared to an increase in such commitments during the year ago period. The $448,000 decrease in advertising and marketing expense was due to less activity in this area compared to the year-ago period. The $428,000 decrease in miscellaneous other noninterest expense was due primarily to small decreases in numerous other types of expenses such as travel and entertainment. The $344,000 decrease in assessments was due to a decrease in FDIC deposit insurance rates during the three months ended December 31, 2016.

The $834,000 increase in professional fees was due to increased consulting fees that were partially offset by decreases in legal and accounting fees. The increase in consulting fees was due primarily to consulting fees related to the Company’s system conversion that was substantially completed during the three months ended December 31, 2016. The $565,000 increase in data processing and software expense was due primarily to increased use of outsourced data processing services. The $295,000 increase in operational losses was primarily due to an increase in losses from fraudulent ATM and point of sale transactions.

The changes in noninterest income and noninterest expense noted above also include the effects from the operation of three branches, including $161,231,000 of deposits, acquired from Bank of America on March 18, 2016.

Richard Smith, President and CEO of the Company commented, “2016 was another busy and successful year for the Company. We are pleased with our quarterly and annual results for the year. Loan growth continues at a strong pace and our acquisition of 3 branches from Bank of America in the second quarter provided added deposits and new loan growth opportunities for the Company. Our credit quality remains very strong. The Bank also completed many significant technology projects throughout the year. These technology solutions provide us with the necessary infrastructure for future growth and expansion. We will continue to look for new opportunities to grow through both internal opportunities and strategic acquisitions when appropriate.”

Smith added, “Key to our success is our talented and diligent workforce. During the 4th quarter, we added two new members to our management team. John Fleshood, our new EVP - Chief Operating Officer and Mark Davis, our new SVP of Deposit Operations bring significant banking experience to our Company. Our management team remains motivated and enthusiastic going into 2017.”

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
December 31,   September 30,   June 30,   March 31,   December 31,
  2016       2016       2016       2016       2015  
Statement of Income Data
Interest income $ 44,615 $ 43,709 $ 42,590 $ 42,794 $ 42,490
Interest expense 1,460 1,439 1,430 1,392 1,349
Net interest income 43,155 42,270 41,160 41,402 41,141
(Benefit from reversal of) provision for loan losses (1,433 ) (3,973 ) (773 ) 209 (908 )
Noninterest income:
Service charges and fees 9,800 8,022 8,099 7,305 8,194
Other income 2,662 3,044 3,146 2,485 3,251
Total noninterest income 12,462 11,066 11,245 9,790 11,445
Noninterest expense:

Base salaries net of deferred loan origination costs

14,074 13,419 12,968 12,708 12,014
Incentive compensation expense 1,864 2,798 2,471 1,739 2,304

Employee benefits and other compensation expense

4,616 4,644 4,606 4,818 4,212
Total salaries and benefits expense 20,554 20,861 20,045 19,265 18,530
Other noninterest expense 16,009 16,555 18,222 14,486 16,154
Total noninterest expense 36,563 37,416 38,267 33,751 34,684
Income before taxes 20,487 19,893 14,911 17,232 18,810
Net income $ 12,533 $ 12,199 $ 9,405 $ 10,674 $ 11,422
Share Data
Basic earnings per share $ 0.55 $ 0.53 $ 0.41 $ 0.47 $ 0.50
Diluted earnings per share $ 0.54 $ 0.53 $ 0.41 $ 0.46 $ 0.50
Book value per common share $ 20.87 $ 21.11 $ 20.76 $ 20.34 $ 19.85
Tangible book value per common share $ 17.77 $ 17.99 $ 17.63 $ 17.18 $ 16.81
Shares outstanding 22,867,802 22,827,277 22,822,325 22,785,173 22,775,173
Weighted average shares 22,845,623 22,824,868 22,802,653 22,782,865 22,769,793
Weighted average diluted shares 23,115,708 23,098,534 23,070,151 23,046,165 23,055,900
Credit Quality
Nonperforming originated loans $ 12,894 $ 13,083 $ 10,022 $ 12,660 $ 22,824
Total nonperforming loans 20,128 20,952 19,977 24,034 37,119
Foreclosed assets, net of allowance 3,986 4,124 3,842 4,471 5,369
Loans charged-off 635 664 641 1,289 380
Loans recovered $ 1,087 $ 2,612 $ 536 $ 1,457 $ 781
Selected Financial Ratios
Return on average total assets 1.13 % 1.11 % 0.86 % 1.01 % 1.11 %
Return on average equity 10.47 % 10.15 % 7.98 % 9.25 % 10.14 %
Average yield on loans 5.38 % 5.36 % 5.32 % 5.48 % 5.60 %
Average yield on interest-earning assets 4.42 % 4.37 % 4.28 % 4.47 % 4.53 %
Average rate on interest-bearing liabilities 0.22 % 0.22 % 0.21 % 0.22 % 0.22 %
Net interest margin (fully tax-equivalent) 4.28 % 4.23 % 4.13 % 4.33 % 4.39 %
Supplemental Loan Interest Income Data:
Discount accretion PCI - cash basis loans $ 483 $ 777 $ 426 $ 269 $ 302
Discount accretion PCI - other loans 658 569 415 (45 ) 1,392
Discount accretion PNCI loans 637 883 1,459 868 573
All other loan interest income $ 34,463 33,540 32,038 33,646 32,571
Total loan interest income $ 36,241 $ 35,769 $ 34,338 $ 34,738 $ 34,838
 
TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA
(Unaudited. Dollars in thousands)
 
  Three months ended
December 31,   September 30,   June 30,   March 31,   December 31,
Balance Sheet Data   2016       2016       2016       2016       2015  
Cash and due from banks $ 305,612 $ 315,088 $ 216,786 $ 388,878 $ 303,461
Securities, available for sale 550,233 510,209 529,017 477,454 404,885
Securities, held to maturity 602,536 641,149 674,412 705,133 726,530
Restricted equity securities 16,956 16,956 16,956 16,956 16,956
Loans held for sale 2,998 7,777 2,904 2,240 1,873
Loans:
Commercial loans 218,002 217,110 209,840 197,695 194,913
Consumer loans 375,629 377,016 381,114 401,076 395,283
Real estate mortgage loans 2,043,543 1,998,913 1,913,024 1,813,933 1,811,832
Real estate construction loans 122,419 119,187 149,652 128,843 120,909
Total loans, gross 2,759,593 2,712,226 2,653,630 2,541,547 2,522,937
Allowance for loan losses (32,503 ) (33,484 ) (35,509 ) (36,388 ) (36,011 )
Foreclosed assets 3,986 4,124 3,842 4,471 5,369
Premises and equipment 48,406 49,448 51,728 51,522 43,811
Cash value of life insurance 95,912 95,281 94,572 95,256 94,560
Goodwill 64,311 64,311 64,311 64,311 63,462
Other intangible assets 6,563 6,923 7,282 7,641 5,894
Mortgage servicing rights 6,595 6,208 6,720 7,140 7,618
Accrued interest receivable 12,027 10,819 11,602 11,075 10,786
Other assets 74,743 60,096 54,239 57,720 48,591
Total assets $ 4,517,968 4,467,131 4,352,492 4,394,956 4,220,722
Deposits:
Noninterest-bearing demand deposits 1,275,745 1,221,503 1,181,702 1,178,001 1,155,695
Interest-bearing demand deposits 887,625 910,638 867,638 884,638 853,961
Savings deposits 1,397,036 1,366,892 1,346,269 1,368,644 1,281,540
Time certificates 335,154 336,979 345,787 353,757 340,070
Total deposits 3,895,560 3,836,012 3,741,396 3,785,040 3,631,266
Accrued interest payable 818 774 727 751 774
Reserve for unfunded commitments 2,719 2,908 2,883 2,475 2,475
Other liabilities 67,364 69,695 57,587 68,064 65,293
Other borrowings 17,493 19,235 19,464 18,671 12,328
Junior subordinated debt 56,667 56,617 56,567 56,519 56,470
Total liabilities 4,040,621 3,985,241 3,878,624 3,931,520 3,768,606
Total shareholders' equity 477,347 481,890 473,868 463,436 452,116

Accumulated other comprehensive gain (loss)

(7,913 ) 4,953 6,073 1,772 (1,778 )
Average loans 2,695,743 2,669,954 2,579,774 2,537,574 2,489,406
Average interest-earning assets 4,094,011 4,055,446 4,038,728 3,876,786 3,777,144
Average total assets 4,445,310 4,407,322 4,387,950 4,212,388 4,115,369
Average deposits 3,820,773 3,784,748 3,778,436 3,616,618 3,543,423
Average total equity $ 478,993 $ 480,575 $ 471,362 $ 461,520 $ 450,413
Total risk based capital ratio 14.6 % 14.7 % 14.7 % 15.1 % 15.1 %
Tier 1 capital ratio 13.6 % 13.6 % 13.6 % 13.9 % 13.8 %
Tier 1 common equity ratio 12.0 % 12.0 % 12.0 % 12.3 % 12.2 %
Tier 1 leverage ratio 10.6 % 10.6 % 10.4 % 10.7 % 10.8 %
Tangible capital ratio 9.1 % 9.3 % 9.4 % 9.1 % 9.2 %

Contacts

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

Release Summary

TriCo Bancshares Announces Quarterly and Annual Results

Contacts

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