TriCo Bancshares Announces Quarterly Results

CHICO, Calif.--()--TriCo Bancshares (NASDAQ: TCBK) (the "Company"), parent company of Tri Counties Bank, today announced net income of $23,061,000 for the quarter ended June 30, 2019, compared to $22,726,000 during the trailing quarter ended March 31, 2019 and $15,029,000 during the quarter ended June 30, 2018. Diluted earnings per share were $0.75 for the second quarter of 2019, compared to $0.74 for the first quarter of 2019 and $0.65 for the second quarter of 2018.

Financial Highlights

Performance highlights and other developments for the Company as of or for the three and six months ended June 30, 2019 included the following:

  • For the three and six months ended June 30, 2019, the Company’s return on average assets was 1.44% and 1.43%, respectively, and the return on average equity was 10.65% and 10.71%, respectively.
  • As of June 30, 2019, the Company reported total loans, total assets and total deposits of $4.10 billion, $6.40 billion and $5.34 billion, respectively.
  • The loan to deposit ratio was 76.8% as of June 30, 2019 as compared to 74.3% at March 31, 2019 and 77.2% at June 30, 2018.
  • Net interest margin grew 34 basis points to 4.48% on a tax equivalent basis as compared to 4.14% in the quarter ended June 30, 2018 and increased 2 basis points from the trailing quarter.
  • Non-interest bearing deposits as a percentage of total deposits were 33.3% at June 30, 2019, as compared to 32.4% at March 31, 2019 and 33.6% at June 30, 2018.
  • The average rate of interest paid on deposits, including noninterest-bearing deposits, remained low but increased slightly to 0.22% for the second quarter of 2019 as compared with 0.20% for the trailing quarter, and an increase of 10 basis points from the average rate paid during the same quarter of the prior year.
  • Non-performing assets to total assets were 0.35% at June 30, 2019 as compared to 0.34% as of March 31, 2019 and 0.47% at December 31, 2018.
  • The balance of nonperforming loans increased by $1.0 million, however recoveries on previously charged-off loans were $0.3 million and loans past due thirty days or more decreased by $2.18 million during the quarter.
  • The efficiency ratio remained flat at 60.15% as compared to the trailing quarter, which had an efficiency ratio of 60.10%.

President and CEO, Rick Smith commented, “We are pleased with our second quarter operating results which were benefited by organic loan growth of nearly 7.0% on an annualized basis as well as our ability to hold operating costs not associated with incentive compensation flat. The strength and depth of our lending team continues to grow and we look forward to further expansion of both new and existing markets. We previously announced that Richard O’Sullivan, our EVP Chief Commercial Lending Officer, will be retiring after 35 years of dedicated service this month. I would like to thank Richard for all that he has done for the Bank, our shareholders and our customers. As part of our succession management efforts we now look toward Dan Bailey, our EVP Chief Banking Officer, to continue to drive our positive momentum and performance levels into the future.”

Summary Results

The following is a summary of the components of the Company’s operating results and performance ratios for the periods indicated:

 

Three months ended

 

 

 

 

June 30,

 

March 31,

 

 

 

 

(dollars and shares in thousands)

2019

 

2019

 

$ Change

 

% Change

Net interest income

$

64,315

$

63,870

$

445

0.7%

(Provision for) reversal of loan losses

 

(537)

 

1,600

 

(2,137)

nm
Noninterest income

 

13,578

 

11,864

 

1,714

14.4%

Noninterest expense

 

(46,852)

 

(45,513)

 

(1,339)

2.9%

Provision for income taxes

 

(7,443)

 

(9,095)

 

1,652

(18.2%)

Net income

$

23,061

$

22,726

$

335

1.5%

 
Diluted earnings per share

$

0.75

$

0.74

$

0.01

1.4%

Dividends per share

$

0.19

$

0.19

 

-

0.0%

Average common shares

 

30,458

 

30,424

 

34

0.1%

Average diluted common shares

 

30,643

 

30,658

 

(15)

(0.0%)

 
Return on average total assets

 

1.44%

 

1.41%

Return on average equity

 

10.65%

 

10.78%

Efficiency ratio

 

60.15%

 

60.10%

 

Three months ended June 30,

 

 

 

 

(dollars and shares in thousands)

2019

 

2018

 

$ Change

 

% Change

Net interest income

$

64,315

$

45,869

$

18,446

40.2%

(Provision for) reversal of loan losses

 

(537)

 

638

 

(1,175)

nm
Noninterest income

 

13,578

 

12,174

 

1,404

11.5%

Noninterest expense

 

(46,852)

 

(37,870)

 

(8,982)

23.7%

Provision for income taxes

 

(7,443)

 

(5,782)

 

(1,661)

28.7%

Net income

$

23,061

$

15,029

$

8,032

53.4%

 
Diluted earnings per share

$

0.75

$

0.65

$

0.10

15.4%

Dividends per share

$

0.19

$

0.17

$

0.02

11.8%

Average common shares

 

30,458

 

22,983

 

7,475

32.5%

Average diluted common shares

 

30,643

 

23,276

 

7,367

31.7%

 
Return on average total assets

 

1.44%

 

1.25%

Return on average equity

 

10.65%

 

11.78%

Efficiency ratio

 

60.15%

 

65.24%

 
Six months ended June 30,
(dollars and shares in thousands)

2019

2018

$ Change % Change
Net interest income

$

128,185

$

90,855

$

37,330

41.1%

Benefit from reversal of provision
for loan losses

 

1,063

 

874

 

189

nm

Noninterest income

 

25,442

 

24,464

 

978

4.0%

Noninterest expense

 

(92,365)

 

(76,032)

 

(16,333)

21.5%

Provision for income taxes

 

(16,538)

 

(11,222)

 

(5,316)

47.4%

Net income

$

45,787

$

28,939

$

16,848

58.2%

 
Diluted earnings per share

$

1.49

$

1.24

$

0.25

20.2%

Dividends per share

$

0.19

$

0.17

$

0.02

11.8%

Average common shares

 

30,441

 

22,970

 

7,471

32.5%

Average diluted common shares

 

30,650

 

23,280

 

7,370

31.7%

 
Return on average total assets

 

1.43%

 

1.21%

Return on average equity

 

10.71%

 

11.39%

Efficiency ratio

 

60.12%

 

65.93%

Balance Sheet

Loan growth of $69,356,000 or 6.9% on an annualized basis during the second quarter of 2019 provided benefit to the yield on earning assets and net interest margin as excess liquidity maintained at the Federal Reserve was utilized to fund loans and facilitate seasonal fluctuations in interest-bearing deposit balances.

Trailing Quarter Balance Sheet Change

 

Annualized

Ending balances

As of June 30,

 

As of March 31,

 

Organic

 

Organic

($'s in thousands)

2019

 

2019

 

$ Change

 

% Change

 
Total assets

$

6,395,172

$

6,471,852

$

(76,680

)

(4.7

%)

Total loans

 

4,103,687

 

4,034,331

 

69,356

 

6.9

%

Total investments

 

1,566,720

 

1,564,692

 

2,028

 

0.5

%

Total deposits

$

5,342,173

$

5,430,262

$

(88,089

)

(6.5

%)

The growth in average loans of $20,180,000 or 2.0% on an annualized basis during the second quarter was less than the end of period growth as nearly all of the quarterly growth occurred during the last month of the quarter.

 

Average Trailing Quarter Balance Sheet Change

 

 

 

 

 

 

 

Annualized

Qtrly avg balances

As of June 30,

 

As of March 31,

 

Organic

 

Organic

($'s in thousands)

2019

 

2019

 

$ Change

 

% Change

 
Total assets

$

6,385,889

$

6,426,227

$

(40,338

)

(2.5

%)

Total loans

 

4,044,044

 

4,023,864

 

20,180

 

2.0

%

Total investments

 

1,573,112

 

1,567,584

 

5,528

 

1.4

%

Total deposits

$

5,370,879

$

5,387,079

$

(16,200

)

(1.2

%)

In addition to the balance sheet changes which resulted from the acquisition of FNB Bancorp in July 2018, total assets have grown by $68,819,000 or 1.4% between June 2018 and June 2019. This growth was led by $122,691,000 or 3.9% in organic loan growth which was funded by $273,016,000 or 6.7% in organic deposit growth.

 
Year Over Year Balance Sheet Change
Ending balances

As of June 30,

 

 

 

Acquired

 

Organic

 

Organic

($'s in thousands)

2019

 

2018

 

$ Change

 

Balances

 

$ Change

 

% Change

 
Total assets

$

6,395,172

$

4,863,153

$

1,532,019

$

1,463,200

$

68,819

 

1.4

%

Total loans

 

4,103,687

 

3,146,313

 

957,374

 

834,683

 

122,691

 

3.9

%

Total investments

 

1,566,720

 

1,251,776

 

314,944

 

335,667

 

(20,723

)

(1.7

%)

Total deposits

$

5,342,173

$

4,077,222

$

1,264,951

$

991,935

$

273,016

 

6.7

%

Total equity increased to $875,886,000 at June 30, 2019 as compared to $853,278,000 at March 31, 2019 and inclusive of $2,198,000 and $8,927,000 in accumulated other comprehensive loss at the same periods, respectively. As a result, the Company’s book value per share increased to $28.71 at June 30, 2019 from $28.04 per share at March 31, 2019. The Company’s tangible book value per share, calculated by subtracting goodwill and other intangible assets from total shareholders’ equity and dividing that sum by total shares outstanding, increased to $20.60 per share at June 30, 2019 from $19.86 per share March 31, 2019. Excluding accumulated other comprehensive losses from total equity for both quarters, tangible book value per share increased to $20.68 at June 30, 2019 from $20.16 at March 31, 2019.

Net Interest Income and Net Interest Margin

The following is a summary of the components of net interest income for the periods indicated:

 

Three months ended

 

 

 

 

June 30,

 

March 31,

 

 

 

 

(dollars in thousands)

2019

 

2019

 

$ Change

 

% Change

Interest income

$

68,180

 

$

67,457

 

$

723

 

1.1

%

Interest expense

 

(3,865

)

 

(3,587

)

 

(278

)

7.8

%

Fully tax-equivalent adjustment (FTE) (1)

 

298

 

 

322

 

 

(24

)

(7.5

%)

Net interest income (FTE)

$

64,613

 

$

64,192

 

$

421

 

0.7

%

Net interest margin (FTE)

 

4.48

%

 

4.46

%

Acquired loans discount accretion, net:
Amount (included in interest income)

$

1,904

 

$

1,655

 

$

249

 

15.0

%

Effect on average loan yield

 

0.19

%

 

0.17

%

 

0.02

%

Effect on net interest margin (FTE)

 

0.13

%

 

0.12

%

 

0.01

%

Three months ended June 30,

 

 

 

 

(dollars in thousands)

2019

 

2018

 

$ Change

 

% Change

Interest income

$

68,180

 

$

48,478

 

$

19,702

 

40.6

%

Interest expense

 

(3,865

)

 

(2,609

)

 

(1,256

)

48.1

%

Fully tax-equivalent adjustment (FTE) (1)

 

298

 

 

313

 

 

(15

)

(4.8

%)

Net interest income (FTE)

$

64,613

 

$

46,182

 

$

18,431

 

39.9

%

Net interest margin (FTE)

 

4.48

%

 

4.14

%

Acquired loans discount accretion, net:
Amount (included in interest income)

$

1,904

 

$

559

 

$

1,345

 

240.6

%

Effect on average loan yield

 

0.19

%

 

0.07

%

 

0.12

%

Effect on net interest margin (FTE)

 

0.13

%

 

0.05

%

 

0.08

%

Six months ended June 30,

 

 

 

 

(dollars in thousands)

2019

 

2018

 

$ Change

 

% Change

Interest income

$

135,637

 

$

95,599

 

$

40,038

 

41.9

%

Interest expense

 

(7,452

)

 

(4,744

)

 

(2,708

)

57.1

%

Fully tax-equivalent adjustment (FTE) (1)

 

619

 

 

625

 

 

(6

)

(1.0

%)

Net interest income (FTE)

$

128,804

 

$

91,480

 

$

37,324

 

40.8

%

Net interest margin (FTE)

 

4.47

%

 

4.14

%

Acquired loans discount accretion, net:
Amount (included in interest income)

$

3,559

 

$

1,191

 

$

2,368

 

198.8

%

Effect on average loan yield

 

0.18

%

 

0.08

%

 

0.10

%

Effect on net interest margin (FTE)

 

0.12

%

 

0.05

%

 

0.07

%

(1) Information is presented on a fully tax-equivalent (FTE) basis. The Company believes the use of this non-generally accepted accounting principles (non-GAAP) measure provides additional clarity in assessing its results, and the presentation of these measures on a FTE basis is a common practice within the banking industry.

Loans may be acquired at a premium or discount to par value, in which case, the premium is amortized (subtracted from) or accreted (added to) 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. During the three months ended June 30, 2019, March 31, 2019 and December 31, 2018, purchased loan discount accretion was $1,904,000, $1,655,000, and $1,982,000, respectively. During the three months ended March 31, 2019, loans purchased at net premiums several years ago were repaid prior to expected maturity resulting in approximately $259,000 of accelerated amortization.

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

 

June 30, 2019

 

March 31, 2019

 

June 30, 2018

 

Average

 

Income/

Yield/

 

Average

 

Income/

Yield/

 

Average

 

Income/

Yield/

 

Balance

 

Expense

Rate

 

Balance

 

Expense

Rate

 

Balance

 

Expense

Rate

Assets
Loans

$

4,044,044

$

55,491

5.49

%

$

4,023,864

$

54,398

5.41

%

$

3,104,126

$

39,304

5.06

%

Investments - taxable

 

1,432,550

 

10,762

3.00

%

 

1,425,352

 

10,915

3.06

%

 

1,122,534

 

7,736

2.76

%

Investments - nontaxable (1)

 

140,562

 

1,358

3.86

%

 

142,232

 

1,395

3.92

%

 

136,126

 

1,355

3.98

%

Total investments

 

1,573,112

 

12,120

3.08

%

 

1,567,584

 

12,310

3.14

%

 

1,258,660

 

9,091

2.89

%

Cash at Federal Reserve and other banks

 

147,810

 

866

2.34

%

 

168,518

 

1,071

2.54

%

 

94,874

 

396

1.67

%

Total earning assets

 

5,764,966

 

68,477

4.75

%

 

5,759,966

 

67,779

4.71

%

 

4,457,660

 

48,791

4.38

%

Other assets, net

 

620,923

 

666,261

 

356,863

Total assets

$

6,385,889

$

6,426,227

$

4,814,523

Liabilities and shareholders' equity
Interest-bearing demand deposits

$

1,276,388

 

289

0.09

%

$

1,273,376

 

287

0.09

%

$

995,528

$

214

0.09

%

Savings deposits

 

1,888,234

 

1,306

0.28

%

 

1,927,120

 

1,133

0.24

%

 

1,393,121

 

427

0.12

%

Time deposits

 

441,116

 

1,403

1.27

%

 

441,778

 

1,299

1.18

%

 

313,556

 

593

0.76

%

Total interest-bearing deposits

 

3,605,738

 

2,998

0.33

%

 

3,642,274

 

2,719

0.30

%

 

2,702,205

 

1,234

0.18

%

Other borrowings

 

17,963

 

37

0.82

%

 

15,509

 

13

0.34

%

 

139,307

 

586

1.68

%

Junior subordinated debt

 

57,222

 

829

5.79

%

 

56,950

 

855

6.01

%

 

56,928

 

789

5.54

%

Total interest-bearing liabilities

 

3,680,923

 

3,864

0.42

%

 

3,714,733

 

3,587

0.39

%

 

2,898,440

 

2,609

0.36

%

Noninterest-bearing deposits

 

1,765,141

 

1,744,805

 

1,339,905

Other liabilities

 

73,541

 

123,599

 

65,745

Shareholders' equity

 

866,284

 

843,090

 

510,433

Total liabilities and shareholders' equity

$

6,385,889

$

6,426,227

$

4,814,523

Net interest rate spread (1) (2)

4.33

%

4.32

%

4.02

%

Net interest income and net interest margin (1) (3)

$

64,613

4.48

%

$

64,192

4.46

%

$

46,182

4.14

%

(1) Fully taxable equivalent (FTE)
(2) Net interest spread is the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.
(3) Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets.

Net interest income (FTE) during the three months ended June 30, 2019 increased $421,000 or 0.7% to $64,613,000 compared to $64,192,000 during the three months ended March 31, 2019. The increase in net interest income (FTE) was due primarily to a shift in average balances from excess liquidity maintained with the Federal Reserve yielding 2.34% during the second quarter to loans which yielded 5.49% during the same period. The yield on interest earning assets was 4.75% for the quarter ended June 30, 2019, which represents an increase of 4 basis points over the trailing quarter and an increase of 37 basis points over the same quarter in the prior year.

The index utilized in a significant portion of the Company’s variable rate loans, Wall Street Journal Prime, has increased by 50 basis points to 5.50% at June 30, 2019 as compared to 5.00% at June 30, 2018. The most recent increase of the index was during December 2018, with an increase of 25 basis points. As such, there were minimal changes to loan yields as compared to the trailing quarter. However, as compared to the same quarter in the prior year, average loan yields increased 43 basis points from 5.06% during the three months ended June 30, 2018 to 5.49% during the three months ended June 30, 2019. Of the 43 basis point increase in yields on loans, 31 basis points was attributable to increases in market rates while 12 basis points was from increased accretion of purchased loans.

Despite decreases in the average balances of savings deposits, these benefits to interest income were partially offset by a 3 basis point increase in the cost of interest bearing liabilities which were 0.42% for the second quarter of 2019. The impact of changes in rates and volumes of interest bearing liabilities resulted in an increase in interest expense of $278,000 during the current quarter. Comparing the quarter ended June 30, 2019 to the trailing quarter, the cost of interest bearing deposits increased by 3 basis points to 0.33% and increased 15 basis points from the same quarter in the prior year due in part to differences in market rates associated with deposits acquired from FNB Bancorp and also due to ongoing competitive pressures associated with deposit accounts in many of the markets we serve.

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

 

ANALYSIS OF CHANGE IN NET INTEREST MARGIN ON EARNING ASSETS

(unaudited, dollars in thousands)

 

Six Months Ended

Six Months Ended

 

June 30, 2019

 

June 30, 2018

 

Average

 

Income/

 

Yield/

 

Average

 

Income/

 

Yield/

 

Balance

 

Expense

 

Rate

 

Balance

 

Expense

 

Rate

Assets
Loans

$

4,033,954

$

109,889

5.45

%

$

3,066,152

$

77,353

5.05

%

Investments - taxable

 

1,428,951

 

21,677

3.03

%

 

1,123,964

 

15,394

2.74

%

Investments - nontaxable (1)

 

141,397

 

2,753

3.89

%

 

136,143

 

2,708

3.98

%

Total investments

 

1,570,348

 

24,430

3.11

%

 

1,260,107

 

18,102

2.87

%

Cash at Federal Reserve and other banks

 

158,164

 

1,937

2.45

%

 

92,869

 

769

1.66

%

Total earning assets

 

5,762,466

 

136,256

4.73

%

 

4,419,128

 

96,224

4.35

%

Other assets, net

 

643,592

 

358,747

Total assets

$

6,406,058

$

4,777,875

Liabilities and shareholders' equity
Interest-bearing demand deposits

$

1,274,882

 

576

0.09

%

$

994,867

 

425

0.09

%

Savings deposits

 

1,907,677

 

2,439

0.26

%

 

1,382,249

 

838

0.12

%

Time deposits

 

441,447

 

2,703

1.22

%

 

310,035

 

1,067

0.69

%

Total interest-bearing deposits

 

3,624,006

 

5,718

0.32

%

 

2,687,151

 

2,330

0.17

%

Other borrowings

 

16,736

 

50

0.60

%

 

123,544

 

928

1.50

%

Junior subordinated debt

 

57,086

 

1,684

5.90

%

 

56,905

 

1,486

5.22

%

Total interest-bearing liabilities

 

3,697,828

 

7,452

0.40

%

 

2,867,600

 

4,744

0.33

%

Noninterest-bearing deposits

 

1,754,973

 

1,336,070

Other liabilities

 

98,570

 

65,982

Shareholders' equity

 

854,687

 

508,223

Total liabilities and shareholders' equity

$

6,406,058

$

4,777,875

Net interest rate spread (1) (2)

4.33

%

4.02

%

Net interest income and net interest margin (1) (3)

$

128,804

4.47

%

$

91,480

4.14

%

(1) Fully taxable equivalent (FTE)
(2) Net interest spread is the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.
(3) Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets.

Net interest income (FTE) during the six months ended June 30, 2019 increased $37,324,000 or 40.8% to $128,804,000 compared to $91,480,000 during the six months ended June 30, 2018. The increases were nearly all attributable to changes in volume of earning assets which were acquired from FNB Bancorp in July 2018. The yield on interest earning assets was 4.73% and 4.35% for the six months ended June 30, 2019 and 2018, respectively. This 38 basis point increase in earning asset yields were primarily attributable to a 40 basis point increase in loan yields and a 24 basis point increase in yields on investments. Of the 40 basis point increase in yields on loans, 30 basis points was attributable to increases in market rates while 10 basis points was from increased accretion of purchased loans.

The increases in yields on earning assets were partially offset by increased funding costs as the costs of total interest bearing liabilities increased 7 basis points to 0.40% for the first half of 2019 as compared to 0.33% for the first half of 2018. During the same period, costs associated with interest bearing deposits increased by 15 basis points to 0.32% as compared to 0.17% in the prior year. The decline in interest expense for the first half of 2019 as compared to the prior period was due entirely to the decreases in volume associated with overnight borrowings.

Asset Quality and Loan Loss Provisioning

The Company recorded provision for loan losses of $537,000 during the three months ended June 30, 2019 as compared to benefits from the reversal of provisions of $1,600,000 for the trailing quarter as well as $638,000 in the same quarter of the prior year. The need for a provision for loan losses during the quarter ended June 30, 2019 was driven by loan growth of $69,356,000 and a slight increase in total nonperforming loans of $1,020,000 but partially offset by net recoveries of $267,000 and a decline in past due loans of $2,181,000. For the six month ended June 30, 2019 the Company recorded a benefit from the reversal of loan losses of $1,063,000. While year to date loan growth in 2019 totaled $81,673,000, nonperforming loans decreased by $6,909,000, past due loans decreased by $2,788,000 and net recoveries were $1,349,000 during the same period.

Provision for Income Taxes

The Company’s effective tax rate was 24.4% for the quarter ended June 30, 2019 as compared to 27.8% for the same quarter in the prior year. During the second quarter of 2019 the Company received a $696,000 non-taxable death benefit from life insurance proceeds. In addition, the ratio of non-deductible expenses to pre-tax income declined in the year over year comparable second quarter periods.

Non-interest Income

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

 

Three months ended

 

 

June 30,

 

March 31,

 

 

(dollars in thousands)

2019

 

2019

 

$ Change

 

% Change

ATM and interchange fees

$

 

5,404

 

$

 

4,581

 

$

 

823

 

18.0

%

Service charges on deposit accounts

4,182

 

3,880

 

302

 

7.8

%

Other service fees

619

 

771

 

(152

)

(19.7

%)

Mortgage banking service fees

475

 

483

 

(8

)

(1.7

%)

Change in value of mortgage servicing rights

(552

)

(645

)

93

 

(14.4

%)

 
Total service charges and fees

10,128

 

9,070

 

1,058

 

11.7

%

 
Increase in cash value of life insurance

746

 

775

 

(29

)

(3.7

%)

Asset management and commission income

739

 

642

 

97

 

15.1

%

Gain on sale of loans

575

 

412

 

163

 

39.6

%

Lease brokerage income

239

 

220

 

19

 

8.6

%

Sale of customer checks

135

 

140

 

(5

)

(3.6

%)

Gain on sale of foreclosed assets

197

 

99

 

98

 

99.0

%

Gain (loss) on marketable equity securities

42

 

36

 

6

 

16.7

%

Loss on disposal of fixed assets

(42

)

(38

)

(4

)

10.5

%

Other

819

 

508

 

311

 

61.2

%

 
Total other noninterest income

3,450

 

2,794

 

656

 

23.5

%

 
Total noninterest income

$

 

13,578

 

$

 

11,864

 

$

 

1,714

 

14.4

%

Noninterest income increased $1,714,000 (14.4%) to $13,578,000 during the three months ended June 30, 2019 compared to the trailing quarter March 31, 2019. The increase in noninterest income was due primarily to a $823,000 (18.0%) increase in ATM and interchange fees which was the result of increased usage. Other noninterest income includes $696,000 and $32,000 in death benefit insurance proceeds during the second and first quarters of 2019, respectively. The declining interest rate environment provided a $163,000 benefit associated with loan sale gains in the second quarter of 2019 as compared to the trailing quarter. However, the fair value of the mortgage servicing asset continued to decrease during the second quarter due to changes in the assumptions utilized in determining the fair value. Specifically, further increases in prepayment speeds resulting from decreases in the 15 and 30 year mortgage rates continued to be the largest contributors to the decline in fair value of the mortgage servicing asset.

 

Three months ended June 30,

 

 

(dollars in thousands)

2019

 

2018

 

$ Change

 

% Change

ATM and interchange fees

$

 

5,404

 

$

 

4,510

 

$

 

894

 

19.8

%

Service charges on deposit accounts

4,182

 

3,613

 

569

 

15.7

%

Other service fees

619

 

630

 

(11

)

(1.7

%)

Mortgage banking service fees

475

 

511

 

(36

)

(7.0

%)

Change in value of mortgage servicing rights

(552

)

(36

)

(516

)

1433.3

%

 
Total service charges and fees

10,128

 

9,228

 

900

 

9.8

%

 
Increase in cash value of life insurance

746

 

656

 

90

 

13.7

%

Asset management and commission income

739

 

810

 

(71

)

(8.8

%)

Gain on sale of loans

575

 

666

 

(91

)

(13.7

%)

Lease brokerage income

239

 

200

 

39

 

19.5

%

Sale of customer checks

135

 

138

 

(3

)

(2.2

%)

Gain on sale of foreclosed assets

197

 

17

 

180

 

1058.8

%

Gain (loss) on marketable equity securities

42

 

(23

)

65

 

(282.6

%)

Loss on disposal of fixed assets

(42

)

(41

)

(1

)

2.4

%

Other

819

 

523

 

296

 

56.6

%

 
Total other noninterest income

3,450

 

2,946

 

504

 

17.1

%

 
Total noninterest income

$

 

13,578

 

$

 

12,174

 

$

 

1,404

 

11.5

%

With the exception of the following items the differences in noninterest income for the three months ended June 30, 2019 and 2018 were largely attributable to the acquisition of FNB Bancorp in July 2018. As noted previously, other noninterest income includes $696,000 and $32,000 in death benefit insurance proceeds during the second and first quarters of 2019, respectively.

 

Six months ended June 30,

 

 

(dollars in thousands)

2019

 

2018

 

$ Change

 

% Change

ATM and interchange fees

$

 

9,985

 

$

 

8,745

 

$

 

1,240

 

14.2

%

Service charges on deposit accounts

8,062

 

7,392

 

670

 

9.1

%

Other service fees

1,390

 

1,344

 

46

 

3.4

%

Mortgage banking service fees

958

 

1,028

 

(70

)

(6.8

%)

Change in value of mortgage servicing rights

(1,197

)

75

 

(1,272

)

(1696.0

%)

 
Total service charges and fees

19,198

 

18,584

 

614

 

3.3

%

 
Increase in cash value of life insurance

1,521

 

1,264

 

257

 

20.3

%

Asset management and commission income

1,381

 

1,686

 

(305

)

(18.1

%)

Gain on sale of loans

987

 

1,292

 

(305

)

(23.6

%)

Lease brokerage income

459

 

328

 

131

 

39.9

%

Sale of customer checks

275

 

239

 

36

 

15.1

%

Gain on sale of foreclosed assets

296

 

388

 

(92

)

(23.7

%)

Gain (loss) on marketable equity securities

78

 

(70

)

148

 

(211.4

%)

Loss on disposal of fixed assets

(80

)

(54

)

(26

)

48.1

%

Other

1,327

 

807

 

520

 

64.4

%

 
Total other noninterest income

6,244

 

5,880

 

364

 

6.2

%

 
Total noninterest income

$

 

25,442

 

$

 

24,464

 

$

 

978

 

4.0

%

Noninterest income increased $978,000 (4.0%) to $25,442,000 during the six months ended June 30, 2019 compared to the comparable six month period in 2018. In addition to the impacts resulting from the FNB Bancorp acquisition, noninterest income for the first half of 2019 as compared to the first half of 2018 were impacted by changes in the fair value of the Company’s mortgage servicing assets which contributed to a $1,272,000 decline, death benefits from life insurance policies contributed to a $728,000 increase in other, and changes in the value of equity securities contributed to a $148,000 increase in noninterest income.

Non-interest Expense

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

 

Three months ended

 

 

June 30,

 

March 31,

 

 

2019

 

2019

 

$ Change

 

% Change

 
Base salaries, net of deferred loan origination costs

$

 

17,211

$

 

16,757

$

 

454

 

2.7

%

Incentive compensation

3,706

2,567

1,139

 

44.4

%

Benefits and other compensation costs

5,802

5,804

(2

)

(0.0

%)

 
Total salaries and benefits expense

26,719

25,128

1,591

 

6.3

%

 
Occupancy

3,738

3,774

(36

)

(1.0

%)

Data processing and software

3,354

3,349

5

 

0.1

%

Equipment

1,752

1,867

(115

)

(6.2

%)

Intangible amortization

1,431

1,431

-

 

0.0

%

Advertising

1,533

1,331

202

 

15.2

%

ATM and POS network charges

1,270

1,323

(53

)

(4.0

%)

Professional fees

1,057

839

218

 

26.0

%

Telecommunications

773

797

(24

)

(3.0

%)

Regulatory assessments and insurance

490

511

(21

)

(4.1

%)

Merger and acquisition expense

-

-

-

 

nm

Postage

315

310

5

 

1.6

%

Operational losses

226

225

1

 

0.4

%

Courier service

412

270

142

 

52.6

%

Other miscellaneous expense

3,782

4,358

(576

)

(13.2

%)

 
Total other noninterest expense

20,133

20,385

(252

)

(1.2

%)

 
Total noninterest expense

$

 

46,852

$

 

45,513

$

 

1,339

 

2.9

%

 
Average full time equivalent staff

1,138

1,138

-

 

0.0

%

Noninterest expense for the quarter ended June 30, 2019 increased $1,339,000 or 2.9% to $46,852,000 as compared to $45,513,000 for the quarter ended March 31, 2019. Increases in salaries were primarily attributable to annual merit increases, and to a lesser extent temporary labor also contributed to the $454,000 or 2.7% increase over the trailing quarter. The increase in incentive compensation cost contributed a $1,139,000 increase in noninterest expense as compared to the trailing quarter and relates directly to loan originations and net loan growth realized the latter half of the second quarter. While other miscellaneous expenses declined by $576,000 in the second quarter of 2019 as compared to the trailing quarter, there were no singularly significant items other than donations expense which decreased by $125,000 during the current period.

 

Three months ended June 30,

 

 

 

 

 

2019

 

2018

 

$ Change

 

% Change

 
Base salaries, net of deferred loan origination costs

$

 

17,211

$

 

14,429

$

 

2,782

 

19.3

%

Incentive compensation

3,706

2,159

1,547

 

71.7

%

Benefits and other compensation costs

5,802

4,865

937

 

19.3

%

 
Total salaries and benefits expense

26,719

21,453

5,266

 

24.5

%

 
Occupancy

3,738

2,720

1,018

 

37.4

%

Data processing and software

3,354

2,679

675

 

25.2

%

Equipment

1,752

1,637

115

 

7.0

%

Intangible amortization

1,431

339

1,092

 

322.1

%

Advertising

1,533

1,035

498

 

48.1

%

ATM and POS network charges

1,270

1,437

(167

)

(11.6

%)

Professional fees

1,057

774

283

 

36.6

%

Telecommunications

773

681

92

 

13.5

%

Regulatory assessments and insurance

490

417

73

 

17.5

%

Merger and acquisition expense

-

601

(601

)

(100.0

%)

Postage

315

301

14

 

4.7

%

Operational losses

226

252

(26

)

(10.3

%)

Courier service

412

224

188

 

83.9

%

Other miscellaneous expense

3,782

3,320

462

 

13.9

%

 
Total other noninterest expense

20,133

16,417

3,716

 

22.6

%

 
Total noninterest expense

$

 

46,852

$

 

37,870

$

 

8,982

 

23.7

%

 
Average full time equivalent staff

1,138

1,001

137

 

13.7

%

Salary and benefit expenses increased $5,266,000 (24.5%) to $26,719,000 during the three months ended June 30, 2019 compared to $21,453,000 during the three months ended June 30, 2018. Base salaries, net of deferred loan origination costs increased $2,782,000 (19.3%) to $17,211,000. The increase in base salaries was due primarily to a 13.6% increase in average full time equivalent employees to 1,138 from 1,002 in the year-ago quarter. Commissions and incentive compensation increased $1,547,000 (71.7%) to $3,706,000 during the three months ended June 30, 2019 compared to the year-ago quarter due primarily to organic loan and deposit growth. Benefits and other compensation expense increased $937,000 (19.3%) to $5,802,000 during the three months ended June 30, 2019 due primarily to increases in the average full time equivalent employees, related to the acquisition of FNB Bancorp in July 2018.

 

Six months ended June 30,

 

 

2019

 

2018

 

$ Change

 

% Change

 
Base salaries, net of deferred loan origination costs

$

33,968

$

28,391

$

5,577

19.6%

Incentive compensation

6,273

4,611

1,662

36.0%

Benefits and other compensation costs

11,606

10,103

1,503

14.9%

 
Total salaries and benefits expense

51,847

43,105

8,742

20.3%

 
Occupancy

7,512

5,401

2,111

39.1%

Data processing and software

6,703

5,193

1,510

29.1%

Equipment

3,619

3,188

431

13.5%

Intangible amortization

2,862

678

2,184

322.1%

Advertising

2,864

1,873

991

52.9%

ATM and POS network charges

2,593

2,663

(70)

(2.6%)

Professional fees

1,896

1,546

350

22.6%

Telecommunications

1,570

1,382

188

13.6%

Regulatory assessments and insurance

1,001

847

154

18.2%

Merger and acquisition expense

-

1,077

(1,077)

(100.0%)

Postage

625

659

(34)

(5.2%)

Operational losses

451

546

(95)

(17.4%)

Courier service

682

491

191

38.9%

Other miscellaneous expense

8,140

7,383

757

10.3%

 
Total other noninterest expense

40,518

32,927

7,591

23.1%

 
Total noninterest expense

$

92,365

$

76,032

$

16,333

21.5%

 
Average full time equivalent staff

1,138

1,001

137

13.7%

 

Noninterest expense increased by $16,333,000 or 21.5% to $92,365,000 during the six months ended June 30, 2019 as compared to the $76,032,000 for the six months ended June 30, 2018. Nearly all of this increase was due to the acquisition of FNB Bancorp, in addition to the aforementioned annual merit increases and incentive compensation costs.

About TriCo Bancshares

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.

Forward-Looking Statement

The statements contained herein that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond our control. There can be no assurance that future developments affecting us will be the same as those anticipated by management. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; the impact of changes in financial services policies, laws and regulations; technological changes; mergers and acquisitions; changes in the level of our nonperforming assets and charge-offs; any deterioration in values of California real estate, both residential and commercial; the effect of changes in accounting standards and practices; possible other-than-temporary impairment of securities held by us; changes in consumer spending, borrowing and savings habits; our ability to attract deposits and other sources of liquidity; changes in the financial performance and/or condition of our borrowers; the impact of competition from other financial service providers; the possibility that any of the anticipated benefits of our recent merger with FNBB will not be realized or will not be realized within the expected time period, or that integration of FNBB’s operations will be more costly or difficult than expected; the challenges of integrating and retaining key employees; unanticipated regulatory or judicial proceedings; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; and our ability to manage the risks involved in the foregoing. Additional factors that could cause results to differ materially from those described above can be found in our Annual Report on Form 10-K for the year ended December 31, 2018, which is on file with the Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of our website, https://www.tcbk.com/investor-relations and in other documents we file with the SEC. Annualized, pro forma, projections and estimates are not forecasts and may not reflect actual results.

 

TRICO BANCSHARES - CONDENSED CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands, except share data)

 

Three months ended

 

June 30,

March 31,

December 31,

September 30,

June 30,

 

2019

 

2019

 

2018

 

2018

 

2018

Revenue and Expense Data
Interest income

$

68,180

 

$

67,457

 

$

68,065

 

$

64,554

 

$

48,478

 

Interest expense

 

3,865

 

 

3,587

 

 

4,063

 

 

4,065

 

 

2,609

 

Net interest income

 

64,315

 

 

63,870

 

 

64,002

 

 

60,489

 

 

45,869

 

Provision for (benefit from) loan losses

 

537

 

 

(1,600

)

 

806

 

 

2,651

 

 

(638

)

Noninterest income:
Service charges and fees

 

10,128

 

 

9,070

 

 

10,132

 

 

9,743

 

 

9,228

 

Gain on sale of investment securities

 

-

 

 

-

 

 

-

 

 

207

 

 

-

 

Other income

 

3,450

 

 

2,794

 

 

2,502

 

 

2,236

 

 

2,946

 

Total noninterest income

 

13,578

 

 

11,864

 

 

12,634

 

 

12,186

 

 

12,174

 

Noninterest expense:
Salaries and benefits

 

26,719

 

 

25,128

 

 

25,014

 

 

25,823

 

 

21,453

 

Occupancy and equipment

 

5,490

 

 

5,641

 

 

5,278

 

 

5,056

 

 

4,357

 

Data processing and network

 

4,624

 

 

4,672

 

 

4,455

 

 

3,981

 

 

4,116

 

Other noninterest expense

 

10,019

 

 

10,072

 

 

10,538

 

 

12,518

 

 

7,944

 

Total noninterest expense

 

46,852

 

 

45,513

 

 

45,285

 

 

47,378

 

 

37,870

 

Total income before taxes

 

30,504

 

 

31,821

 

 

30,545

 

 

22,646

 

 

20,811

 

Provision for income taxes

 

7,443

 

 

9,095

 

 

7,334

 

 

6,476

 

 

5,782

 

Net income

$

23,061

 

$

22,726

 

$

23,211

 

$

16,170

 

$

15,029

 

Share Data
Basic earnings per share

$

0.76

 

$

0.75

 

$

0.76

 

$

0.54

 

$

0.65

 

Diluted earnings per share

$

0.75

 

$

0.74

 

$

0.76

 

$

0.53

 

$

0.65

 

Dividends per share

$

0.19

 

$

0.19

 

$

0.19

 

$

0.17

 

$

0.17

 

Book value per common share

$

28.71

 

$

28.04

 

$

27.20

 

$

26.37

 

$

22.27

 

Tangible book value per common share (1)

$

20.60

 

$

19.86

 

$

18.97

 

$

18.10

 

$

19.28

 

Shares outstanding

 

30,502,757

 

 

30,432,419

 

 

30,417,223

 

 

30,417,818

 

 

23,004,153

 

Weighted average shares

 

30,458,427

 

 

30,424,184

 

 

30,422,687

 

 

30,011,307

 

 

22,983,439

 

Weighted average diluted shares

 

30,642,518

 

 

30,657,833

 

 

30,671,723

 

 

30,291,225

 

 

23,276,471

 

Credit Quality
Loans past due 30 days or more

$

14,580

 

$

16,761

 

$

17,368

 

$

13,218

 

$

11,626

 

Nonperforming originated loans

 

14,087

 

 

13,737

 

 

19,416

 

 

17,087

 

 

17,077

 

Total nonperforming loans

 

20,585

 

 

19,565

 

 

27,494

 

 

27,148

 

 

25,420

 

Total nonperforming assets

 

22,133

 

 

21,880

 

 

29,774

 

 

28,980

 

 

26,794

 

Loans charged-off

 

293

 

 

726

 

 

424

 

 

1,142

 

 

318

 

Loans recovered

$

560

 

$

1,808

 

$

596

 

$

570

 

$

507

 

Selected Financial Ratios
Return on average total assets

 

1.44

%

 

1.41

%

 

1.47

%

 

1.05

%

 

1.25

%

Return on average equity

 

10.65

%

 

10.78

%

 

11.43

%

 

9.11

%

 

11.78

%

Average yield on loans

 

5.49

%

 

5.41

%

 

5.53

%

 

5.27

%

 

5.06

%

Average yield on interest-earning assets

 

4.75

%

 

4.71

%

 

4.82

%

 

4.61

%

 

4.38

%

Average rate on interest-bearing deposits

 

0.33

%

 

0.30

%

 

0.30

%

 

0.25

%

 

0.18

%

Average cost of total deposits

 

0.22

%

 

0.20

%

 

0.20

%

 

0.16

%

 

0.12

%

Average rate on borrowings and subordinated debt

 

4.61

%

 

4.79

%

 

3.27

%

 

2.63

%

 

2.80

%

Average rate on interest-bearing liabilities

 

0.42

%

 

0.39

%

 

0.44

%

 

0.44

%

 

0.36

%

Net interest margin (fully tax-equivalent)

 

4.48

%

 

4.46

%

 

4.53

%

 

4.32

%

 

4.14

%

Loans to deposits

 

76.82

%

 

74.29

%

 

74.95

%

 

79.08

%

 

77.17

%

Efficiency ratio

 

60.15

%

 

60.10

%

 

59.09

%

 

65.19

%

 

65.24

%

Supplemental Loan Interest Income Data
Discount accretion on acquired loans

$

1,904

 

$

1,655

 

$

1,982

 

$

2,098

 

$

559

 

All other loan interest income

 

53,587

 

 

52,743

 

 

53,680

 

 

51,004

 

 

38,745

 

Total loan interest income

$

55,491

 

$

54,398

 

$

55,662

 

$

53,102

 

$

39,304

 

(1) Tangible book value per share is calculated by subtracting goodwill and other intangible assets from total shareholders' equity and
dividing that result by the shares outstanding at the end of the period. Management believes that tangible book value per common share
is meaningful because it is a measure that the Company and investors commonly use to assess shareholder value.

TRICO BANCSHARES - CONDENSED CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands)

 

Three months ended

 

June 30,

March 31,

December 31,

September 30,

June 30,

Balance Sheet Data

2019

2019

2018

2018

2018

Cash and due from banks

$

175,582

 

$

318,708

 

$

227,533

 

$

226,543

 

$

184,062

 

Securities, available for sale

 

1,136,946

 

 

1,116,426

 

 

1,117,910

 

 

1,058,806

 

 

757,075

 

Securities, held to maturity

 

412,524

 

 

431,016

 

 

444,936

 

 

459,897

 

 

477,745

 

Restricted equity securities

 

17,250

 

 

17,250

 

 

17,250

 

 

17,250

 

 

16,956

 

Loans held for sale

 

5,875

 

 

5,410

 

 

3,687

 

 

3,824

 

 

3,601

 

Loans:
Commercial loans

 

276,045

 

 

269,163

 

 

276,548

 

 

289,645

 

 

237,619

 

Consumer loans

 

434,388

 

 

418,352

 

 

418,982

 

 

421,287

 

 

350,925

 

Real estate mortgage loans

 

3,178,730

 

 

3,129,339

 

 

3,143,100

 

 

3,132,202

 

 

2,401,040

 

Real estate construction loans

 

214,524

 

 

217,477

 

 

183,384

 

 

184,302

 

 

156,729

 

Total loans, gross

 

4,103,687

 

 

4,034,331

 

 

4,022,014

 

 

4,027,436

 

 

3,146,313

 

Allowance for loan losses

 

(32,868

)

 

(32,064

)

 

(32,582

)

 

(31,603

)

 

(29,524

)

Total loans, net

 

4,070,819

 

 

4,002,267

 

 

3,989,432

 

 

3,995,833

 

 

3,116,789

 

Premises and equipment

 

88,534

 

 

89,275

 

 

89,347

 

 

89,290

 

 

59,014

 

Cash value of life insurance

 

116,606

 

 

117,841

 

 

117,318

 

 

116,596

 

 

99,047

 

Accrued interest receivable

 

20,990

 

 

20,431

 

 

19,412

 

 

19,592

 

 

14,253

 

Goodwill

 

220,972

 

 

220,972

 

 

220,972

 

 

220,972

 

 

64,311

 

Other intangible assets

 

26,418

 

 

27,849

 

 

29,280

 

 

30,711

 

 

4,496

 

Operating leases, right-of-use

 

30,030

 

 

30,942

 

 

-

 

 

-

 

 

-

 

Other assets

 

72,626

 

 

73,465

 

 

75,364

 

 

79,551

 

 

65,804

 

Total assets

$

6,395,172

 

$

6,471,852

 

$

6,352,441

 

$

6,318,865

 

$

4,863,153

 

Deposits:
Noninterest-bearing demand deposits

$

1,780,339

 

$

1,761,559

 

$

1,760,580

 

$

1,710,505

 

$

1,369,834

 

Interest-bearing demand deposits

 

1,263,635

 

 

1,297,672

 

 

1,252,366

 

 

1,152,705

 

 

1,006,331

 

Savings deposits

 

1,856,749

 

 

1,925,168

 

 

1,921,324

 

 

1,801,087

 

 

1,385,268

 

Time certificates

 

441,450

 

 

445,863

 

 

432,196

 

 

428,820

 

 

315,789

 

Total deposits

 

5,342,173

 

 

5,430,262

 

 

5,366,466

 

 

5,093,117

 

 

4,077,222

 

Accrued interest payable

 

2,665

 

 

2,195

 

 

1,997

 

 

1,729

 

 

1,175

 

Operating lease liability

 

29,434

 

 

30,204

 

 

-

 

 

-

 

 

-

 

Other liabilities

 

74,590

 

 

86,362

 

 

83,724

 

 

82,077

 

 

62,623

 

Other borrowings

 

13,292

 

 

12,466

 

 

15,839

 

 

282,831

 

 

152,839

 

Junior subordinated debt

 

57,132

 

 

57,085

 

 

57,042

 

 

56,996

 

 

56,950

 

Total liabilities

$

5,519,286

 

$

5,618,574

 

$

5,525,068

 

$

5,516,750

 

$

4,350,809

 

Common stock

 

542,939

 

 

542,340

 

 

541,762

 

 

541,519

 

 

256,590

 

Retained earnings

 

335,145

 

 

319,865

 

 

303,490

 

 

287,555

 

 

276,877

 

Accumulated other comprehensive loss

 

(2,198

)

 

(8,927

)

 

(17,879

)

 

(26,959

)

 

(21,123

)

Total shareholders' equity

$

875,886

 

$

853,278

 

$

827,373

 

$

802,115

 

$

512,344

 

Average Balance Data
Average loans

$

4,044,044

 

$

4,023,864

 

$

4,026,569

 

$

4,028,462

 

$

3,104,126

 

Average interest-earning assets

$

5,764,966

 

$

5,759,966

 

$

5,679,845

 

$

5,638,162

 

$

4,457,660

 

Average total assets

$

6,385,889

 

$

6,426,227

 

$

6,316,337

 

$

6,168,344

 

$

4,814,523

 

Average deposits

$

5,370,879

 

$

5,387,079

 

$

5,242,139

 

$

5,068,841

 

$

4,042,110

 

Average borrowings and subordinated debt

$

75,185

 

$

72,459

 

$

179,774

 

$

303,610

 

$

196,235

 

Average total equity

$

866,284

 

$

843,090

 

$

812,525

 

$

709,762

 

$

510,433

 

Capital Ratio Data
Total risk based capital ratio

 

14.9

%

 

14.4

%

 

14.4

%

 

13.9

%

 

13.9

%

Tier 1 capital ratio

 

14.2

%

 

13.6

%

 

13.7

%

 

13.2

%

 

13.1

%

Tier 1 common equity ratio

 

13.0

%

 

12.5

%

 

12.5

%

 

12.0

%

 

11.7

%

Tier 1 leverage ratio

 

11.1

%

 

10.6

%

 

10.7

%

 

10.7

%

 

10.9

%

Tangible capital ratio (1)

 

10.2

%

 

9.7

%

 

9.5

%

 

9.1

%

 

9.3

%

(1) Tangible capital ratio is calculated by subtracting goodwill and other intangible assets from total shareholders' equity and total assets
and then dividing the adjusted assets by the adjusted equity. Management believes that the tangible capital ratio is meaningful
because it is a measure that the Company and investors commonly use to assess capital adequacy.

 

Contacts

Richard P. Smith
President & CEO (530) 898-0300

Release Summary

TriCo Bancshares Announces Results for Quarter Ended 6/30/19

$Cashtags

Contacts

Richard P. Smith
President & CEO (530) 898-0300