04/25/2024 | Press release | Distributed by Public on 04/25/2024 04:06
TriCo Bancshares reports first quarter 2024 net income of $27.7 million, diluted EPS of $0.83
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1Q24 Financial Highlights
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Executive Commentary:
"The start of the second quarter of 2024 also represents the start of Tri Counties Bank's 50th year of operations. Thinking back to our humble beginnings, we have achieved great success through our consistent delivery of Service with Solutions® and we are thankful to be recognized as an industry leading Community Bank in California. Amidst a challenging operating and economic environment, our financial results for the first quarter clearly illustrate our resilience and ability to create shareholder value," explained Rick Smith, President and Chief Executive Officer.
Peter Wiese, EVP and Chief Financial Officer added, "As changing economic forecasts created short term volatility, we continued to execute a variety of balance sheet and operationally focused strategies which, during the first quarter of 2024, resulted in our ability to grow deposits, reduce borrowings, and improve our efficiency ratio. As the balance of 2024 unfolds, we anticipate that the incremental repricing of earning assets will provide an increasing level of benefit to revenues."
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Selected Financial Highlights |
Operating Results and Performance Ratios |
Three months ended | ||||||||
March 31, | December 31, | |||||||
(dollars and shares in thousands, except per share data) | 2024 | 2023 | $ Change | % Change | ||||
Net interest income | $ | 82,736 | $ | 86,617 | $ | (3,881) | (4.5) | % |
Provision for credit losses | (4,305) | (5,990) | 1,685 | (28.1) | % | |||
Noninterest income | 15,771 | 16,040 | (269) | (1.7) | % | |||
Noninterest expense | (56,504) | (60,267) | 3,763 | (6.2) | % | |||
Provision for income taxes | (9,949) | (10,325) | 376 | (3.6) | % | |||
Net income | $ | 27,749 | $ | 26,075 | $ | 1,674 | 6.4 | % |
Diluted earnings per share | $ | 0.83 | $ | 0.78 | $ | 0.05 | 6.4 | % |
Dividends per share | $ | 0.33 | $ | 0.30 | $ | 0.03 | 10.0 | % |
Average common shares | 33,245 | 33,267 | (22) | (0.1) | % | |||
Average diluted common shares | 33,370 | 33,352 | 18 | 0.1 | % | |||
Return on average total assets | 1.13 | % | 1.05 | % | ||||
Return on average equity | 9.50 | % | 9.43 | % | ||||
Efficiency ratio | 57.36 | % | 58.71 | % |
Three months ended March 31, |
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(dollars and shares in thousands, except per share data) | 2024 | 2023 | $ Change | % Change | ||||
Net interest income | $ | 82,736 | $ | 93,336 | $ | (10,600) | (11.4) | % |
Provision for credit losses | (4,305) | (4,195) | (110) | 2.6 | % | |||
Noninterest income | 15,771 | 13,635 | 2,136 | 15.7 | % | |||
Noninterest expense | (56,504) | (53,794) | (2,710) | 5.0 | % | |||
Provision for income taxes | (9,949) | (13,149) | 3,200 | (24.3) | % | |||
Net income | $ | 27,749 | $ | 35,833 | $ | (8,084) | (22.6) | % |
Diluted earnings per share | $ | 0.83 | $ | 1.07 | $ | (0.24) | (22.4) | % |
Dividends per share | $ | 0.33 | $ | 0.30 | $ | 0.03 | 10.0 | % |
Average common shares | 33,245 | 33,296 | (51) | (0.2) | % | |||
Average diluted common shares | 33,370 | 33,438 | (68) | (0.2) | % | |||
Return on average total assets | 1.13 | % | 1.47 | % | ||||
Return on average equity | 9.50 | % | 13.36 | % | ||||
Efficiency ratio | 57.36 | % | 50.29 | % |
Balance Sheet Data |
Trailing Quarter Balance Sheet Change |
Ending balances | March 31, | December 31, |
Annualized % Change |
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(dollars in thousands) | 2024 | 2023 | $ Change | |||||
Total assets | $ | 9,813,767 | $ | 9,910,089 | $ | (96,322) | (3.9) | % |
Total loans | 6,800,695 | 6,794,470 | 6,225 | 0.4 | ||||
Total investments | 2,221,555 | 2,305,882 | (84,327) | (14.6) | ||||
Total deposits | 7,987,658 | 7,834,038 | 153,620 | 7.8 | ||||
Total other borrowings | 392,409 | 632,582 | (240,173) | (151.9) |
Average Trailing Quarter Balance Sheet Change |
Quarterly average balances for the period ended | March 31, | December 31, |
Annualized % Change |
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(dollars in thousands) | 2024 | 2023 | $ Change | |||||
Total assets | $ | 9,855,797 | $ | 9,879,355 | $ | (23,558) | (1.0) | % |
Total loans | 6,785,840 | 6,746,153 | 39,687 | 2.4 | ||||
Total investments | 2,266,320 | 2,295,235 | (28,915) | (5.0) | ||||
Total deposits | 7,821,044 | 7,990,993 | (169,949) | (8.5) | ||||
Total other borrowings | 584,696 | 515,959 | 68,737 | 53.3 |
Year Over Year Balance Sheet Change |
Ending balances | As of March 31, | % Change | ||||||
(dollars in thousands) | 2024 | 2023 | $ Change | |||||
Total assets | $ | 9,813,767 | $ | 9,842,394 | $ | (28,627) | (0.3) | % |
Total loans | 6,800,695 | 6,422,421 | 378,274 | 5.9 | ||||
Total investments | 2,221,555 | 2,577,769 | (356,214) | (13.8) | ||||
Total deposits | 7,987,658 | 8,025,865 | (38,207) | (0.5) | ||||
Total other borrowings | 392,409 | 434,140 | (41,731) | (9.6) |
Primary Sources of Liquidity |
(dollars in thousands) | March 31, 2024 | December 31, 2023 | March 31, 2023 | |||
Borrowing capacity at correspondent banks and FRB | $ | 2,882,859 | $ | 2,921,525 | $ | 2,853,219 |
Less: borrowings outstanding | (367,000) | (600,000) | (394,095) | |||
Unpledged available-for-sale (AFS) investment securities
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1,435,990 | 1,558,506 | 1,883,353 | |||
Cash held or in transit with FRB
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41,541 | 51,253 | 67,468 | |||
Total primary liquidity | $ | 3,993,390 | $ | 3,931,284 | $ | 4,409,945 |
Estimated uninsured deposit balances | $ | 2,450,179 | $ | 2,371,000 | $ | 2,113,000 |
Net Interest Income and Net Interest Margin
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Three months ended | ||||||||
March 31, | December 31, | |||||||
(dollars in thousands) | 2024 | 2023 | Change | % Change | ||||
Interest income | $ | 115,417 | $ | 115,909 | $ | (492) | (0.4) | % |
Interest expense | (32,681) | (29,292) | (3,389) | 11.6 | % | |||
Fully tax-equivalent adjustment (FTE) (1)
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275 | 360 | (85) | (23.6) | % | |||
Net interest income (FTE) | $ | 83,011 | $ | 86,977 | $ | (3,966) | (4.6) | % |
Net interest margin (FTE) | 3.68 | % | 3.81 | % | ||||
Acquired loans discount accretion, net: | ||||||||
Amount (included in interest income) | $ | 1,332 | $ | 1,459 | $ | (127) | (8.7) | % |
Net interest margin less effect of acquired loan discount accretion(1)
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3.62 | % | 3.75 | % | (0.13) | % |
Three months ended March 31, |
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(dollars in thousands) | 2024 | 2023 | Change | % Change | ||||
Interest income | $ | 115,417 | $ | 102,907 | $ | 12,510 | 12.2 | % |
Interest expense | (32,681) | (9,571) | (23,110) | 241.5 | % | |||
Fully tax-equivalent adjustment (FTE) (1)
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275 | 392 | (117) | (29.8) | % | |||
Net interest income (FTE) | $ | 83,011 | $ | 93,728 | $ | (10,717) | (11.4) | % |
Net interest margin (FTE) | 3.68 | % | 4.20 | % | ||||
Acquired loans discount accretion, net: | ||||||||
Amount (included in interest income) | $ | 1,332 | $ | 1,397 | $ | (65) | (4.7) | % |
Net interest margin less effect of acquired loan discount accretion(1)
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3.62 | % | 4.14 | % | (0.52) | % |
Three months ended March 31, |
Analysis Of Change In Net Interest Margin On Earning Assets
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Three months ended | Three months ended | Three months ended | ||||||||||||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
Average Balance |
Income/ Expense |
Yield/ Rate |
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Assets | ||||||||||||||||||
Loans | $ | 6,785,840 | $ | 96,485 | 5.72 | % | $ | 6,746,153 | $ | 95,841 | 5.64 | % | $ | 6,413,958 | $ | 82,415 | 5.21 | % |
Investments-taxable | 2,127,420 | 17,829 | 3.37 | % | 2,121,652 | 18,522 | 3.46 | % | 2,415,485 | 18,916 | 3.18 | % | ||||||
Investments-nontaxable (1)
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138,900 | 1,192 | 3.45 | % | 173,583 | 1,561 | 3.57 | % | 189,050 | 1,699 | 3.64 | % | ||||||
Total investments | 2,266,320 | 19,021 | 3.38 | % | 2,295,235 | 20,083 | 3.47 | % | 2,604,535 | 20,615 | 3.21 | % | ||||||
Cash at Fed Reserve and other banks | 14,377 | 186 | 5.20 | % | 23,095 | 345 | 5.93 | % | 26,818 | 269 | 4.07 | % | ||||||
Total earning assets | 9,066,537 | 115,692 | 5.13 | % | 9,064,483 | 116,269 | 5.09 | % | 9,045,311 | 103,299 | 4.63 | % | ||||||
Other assets, net | 789,260 | 814,872 | 850,866 | |||||||||||||||
Total assets | $ | 9,855,797 | $ | 9,879,355 | $ | 9,878,927 | ||||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||
Interest-bearing demand deposits | $ | 1,710,844 | $ | 4,947 | 1.16 | % | $ | 1,755,900 | $ | 4,714 | 1.07 | % | $ | 1,673,114 | $ | 387 | 0.09 | % |
Savings deposits | 2,651,917 | 10,900 | 1.65 | % | 2,765,679 | 10,828 | 1.55 | % | 2,898,463 | 4,154 | 0.58 | % | ||||||
Time deposits | 811,894 | 7,682 | 3.81 | % | 652,709 | 5,564 | 3.38 | % | 274,805 | 604 | 0.89 | % | ||||||
Total interest-bearing deposits | 5,174,655 | 23,529 | 1.83 | % | 5,174,288 | 21,106 | 1.62 | % | 4,846,382 | 5,145 | 0.43 | % | ||||||
Other borrowings | 584,696 | 7,378 | 5.08 | % | 515,959 | 6,394 | 4.92 | % | 277,632 | 2,809 | 4.10 | % | ||||||
Junior subordinated debt | 101,106 | 1,774 | 7.06 | % | 101,087 | 1,792 | 7.03 | % | 101,044 | 1,617 | 6.49 | % | ||||||
Total interest-bearing liabilities | 5,860,457 | 32,681 | 2.24 | % | 5,791,334 | 29,292 | 2.01 | % | 5,225,058 | 9,571 | 0.74 | % | ||||||
Noninterest-bearing deposits | 2,646,389 | 2,816,705 | 3,372,194 | |||||||||||||||
Other liabilities | 174,359 | 173,885 | 194,202 | |||||||||||||||
Shareholders' equity | 1,174,592 | 1,097,431 | 1,087,473 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 9,855,797 | $ | 9,879,355 | $ | 9,878,927 | ||||||||||||
Net interest rate spread (1) (2)
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2.89 | % | 3.08 | % | 3.89 | % | ||||||||||||
Net interest income and margin (1) (3)
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$ | 83,011 | 3.68 | % | $ | 86,977 | 3.81 | % | $ | 93,728 | 4.20 | % |
Three months ended March 31, 2024 | Three months ended March 31, 2023 |
Interest Rates and Earning Asset Composition
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Asset Quality and Credit Loss Provisioning
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Three months ended | ||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | March 31, 2023 | |||
Addition to allowance for credit losses | $ | 4,015 | $ | 6,040 | $ | 4,315 |
Addition to (reversal of) reserve for unfunded loan commitments
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290 | (50) | (120) | |||
Total provision for credit losses | $ | 4,305 | $ | 5,990 | $ | 4,195 |
Three months ended | ||||
(dollars in thousands) | March 31, 2024 | March 31, 2023 | ||
Balance, beginning of period | $ | 121,522 | $ | 105,680 |
Provision for credit losses | 4,015 | 4,315 | ||
Loans charged-off | (1,275) | (1,758) | ||
Recoveries of previously charged-off loans | 132 | 170 | ||
Balance, end of period | $ | 124,394 | $ | 108,407 |
March 31, | % of Loans Outstanding | December 31, | % of Loans Outstanding | March 31 | % of Loans Outstanding | |||||||
(dollars in thousands) | 2024 | 2023 | 2023 | |||||||||
Risk Rating: | ||||||||||||
Pass | $ | 6,616,294 | 97.3 | % | $ | 6,603,161 | 97.2 | % | $ | 6,232,962 | 97.0 | % |
Special Mention | 108,073 | 1.6 | % | 103,812 | 1.5 | % | 125,492 | 2.0 | % | |||
Substandard | 76,328 | 1.1 | % | 87,497 | 1.3 | % | 63,967 | 1.0 | % | |||
Total | $ | 6,800,695 | $ | 6,794,470 | $ | 6,422,421 | ||||||
Classified loans to total loans | 1.12 | % | 1.29 | % | 1.00 | % | ||||||
Loans past due 30+ days to total loans | 0.24 | % | 0.29 | % | 0.12 | % |
As of March 31, 2024 | As of December 31, 2023 | As of March 31, 2023 | ||||||||||
(dollars in thousands) | Amount | % of Loans Outstanding | Amount | % of Loans Outstanding | Amount | % of Loans Outstanding | ||||||
Commercial real estate: | ||||||||||||
CRE - Non Owner Occupied | $ | 36,687 | 1.65 | % | $ | 35,077 | 1.58 | % | $ | 32,963 | 1.53 | % |
CRE - Owner Occupied | 16,111 | 1.65 | % | 15,081 | 1.58 | % | 14,559 | 1.50 | % | |||
Multifamily | 15,682 | 1.60 | % | 14,418 | 1.52 | % | 13,873 | 1.47 | % | |||
Farmland | 3,695 | 1.39 | % | 4,288 | 1.58 | % | 3,542 | 1.29 | % | |||
Total commercial real estate loans | 72,175 | 1.62 | % | 68,864 | 1.57 | % | 64,937 | 1.49 | % | |||
Consumer: | ||||||||||||
SFR 1-4 1st Liens | 14,140 | 1.60 | % | 14,009 | 1.59 | % | 11,920 | 1.48 | % | |||
SFR HELOCs and Junior Liens | 9,942 | 2.88 | % | 10,273 | 2.88 | % | 10,914 | 2.91 | % | |||
Other | 3,359 | 4.48 | % | 3,171 | 4.34 | % | 2,062 | 3.76 | % | |||
Total consumer loans | 27,441 | 2.10 | % | 27,453 | 2.09 | % | 24,896 | 2.02 | % | |||
Commercial and Industrial | 11,867 | 2.16 | % | 12,750 | 2.17 | % | 12,069 | 2.18 | % | |||
Construction | 9,162 | 2.63 | % | 8,856 | 2.55 | % | 5,655 | 2.50 | % | |||
Agricultural Production | 3,708 | 2.55 | % | 3,589 | 2.48 | % | 833 | 1.77 | % | |||
Leases | 41 | 0.44 | % | 10 | 0.12 | % | 17 | 0.20 | % | |||
Allowance for credit losses | 124,394 | 1.83 | % | 121,522 | 1.79 | % | 108,407 | 1.69 | % | |||
Reserve for unfunded loan commitments | 6,140 | 5,850 | 4,195 | |||||||||
Total allowance for credit losses | $ | 130,534 | 1.92 | % | $ | 127,372 | 1.87 | % | $ | 112,602 | 1.75 | % |
Non-interest Income
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Three months ended | ||||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | Change | % Change | ||||
ATM and interchange fees | $ | 6,169 | $ | 6,531 | $ | (362) | (5.5) | % |
Service charges on deposit accounts | 4,663 | 4,732 | (69) | (1.5) | % | |||
Other service fees | 1,366 | 1,432 | (66) | (4.6) | % | |||
Mortgage banking service fees | 428 | 444 | (16) | (3.6) | % | |||
Change in value of mortgage servicing rights | 11 | (291) | 302 | (103.8) | % | |||
Total service charges and fees | 12,637 | 12,848 | (211) | (1.6) | % | |||
Increase in cash value of life insurance | 803 | 876 | (73) | (8.3) | % | |||
Asset management and commission income | 1,128 | 1,284 | (156) | (12.1) | % | |||
Gain on sale of loans | 261 | 283 | (22) | (7.8) | % | |||
Lease brokerage income | 161 | 109 | 52 | 47.7 | % | |||
Sale of customer checks | 312 | 292 | 20 | 6.8 | % | |||
Loss on sale of investment securities | - | (120) | 120 | n/m | ||||
(Loss) gain on marketable equity securities | (28) | 117 | (145) | (123.9) | % | |||
Other income | 497 | 351 | 146 | 41.6 | % | |||
Total other non-interest income | 3,134 | 3,192 | (58) | (1.8) | % | |||
Total non-interest income | $ | 15,771 | $ | 16,040 | $ | (269) | (1.7) | % |
Three months ended March 31, | ||||||||
(dollars in thousands) | 2024 | 2023 | Change | % Change | ||||
ATM and interchange fees | $ | 6,169 | $ | 6,344 | $ | (175) | (2.8) | % |
Service charges on deposit accounts | 4,663 | 3,431 | 1,232 | 35.9 | % | |||
Other service fees | 1,366 | 1,166 | 200 | 17.2 | % | |||
Mortgage banking service fees | 428 | 465 | (37) | (8.0) | % | |||
Change in value of mortgage servicing rights | 11 | (209) | 220 | (105.3) | % | |||
Total service charges and fees | 12,637 | 11,197 | 1,440 | 12.9 | % | |||
Increase in cash value of life insurance | 803 | 802 | 1 | 0.1 | % | |||
Asset management and commission income | 1,128 | 934 | 194 | 20.8 | % | |||
Gain on sale of loans | 261 | 206 | 55 | 26.7 | % | |||
Lease brokerage income | 161 | 98 | 63 | 64.3 | % | |||
Sale of customer checks | 312 | 288 | 24 | 8.3 | % | |||
Loss on sale of investment securities | - | (164) | 164 | n/m | ||||
Gain on marketable equity securities | (28) | 42 | (70) | (166.7) | % | |||
Other income | 497 | 232 | 265 | 114.2 | % | |||
Total other non-interest income | 3,134 | 2,438 | 696 | 28.5 | % | |||
Total non-interest income | $ | 15,771 | $ | 13,635 | $ | 2,136 | 15.7 | % |
Three months ended March 31, |
Non-interest Expense
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Three months ended | ||||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | Change | % Change | ||||
Base salaries, net of deferred loan origination costs | $ | 24,020 | $ | 23,889 | $ | 131 | 0.5 | % |
Incentive compensation | 3,257 | 3,894 | (637) | (16.4) | % | |||
Benefits and other compensation costs | 7,027 | 6,272 | 755 | 12.0 | % | |||
Total salaries and benefits expense | 34,304 | 34,055 | 249 | 0.7 | % | |||
Occupancy | 3,951 | 4,036 | (85) | (2.1) | % | |||
Data processing and software | 5,107 | 5,017 | 90 | 1.8 | % | |||
Equipment | 1,356 | 1,322 | 34 | 2.6 | % | |||
Intangible amortization | 1,030 | 1,216 | (186) | (15.3) | % | |||
Advertising | 762 | 875 | (113) | (12.9) | % | |||
ATM and POS network charges | 1,661 | 1,863 | (202) | (10.8) | % | |||
Professional fees | 1,340 | 2,032 | (692) | (34.1) | % | |||
Telecommunications | 511 | 576 | (65) | (11.3) | % | |||
Regulatory assessments and insurance | 1,251 | 1,297 | (46) | (3.5) | % | |||
Postage | 308 | 320 | (12) | (3.8) | % | |||
Operational loss | 352 | 445 | (93) | (20.9) | % | |||
Courier service | 480 | 537 | (57) | (10.6) | % | |||
(Gain) loss on sale or acquisition of foreclosed assets | (38) | 19 | (57) | (300.0) | % | |||
Loss on disposal of fixed assets | 5 | 1 | 4 | 400.0 | % | |||
Other miscellaneous expense | 4,124 | 6,656 | (2,532) | (38.0) | % | |||
Total other non-interest expense | 22,200 | 26,212 | (4,012) | (15.3) | % | |||
Total non-interest expense | $ | 56,504 | $ | 60,267 | $ | (3,763) | (6.2) | % |
Average full-time equivalent staff | 1,188 | 1,211 | (23) | (1.9) | % |
Three months ended March 31, | ||||||||
(dollars in thousands) | 2024 | 2023 | Change | % Change | ||||
Base salaries, net of deferred loan origination costs | $ | 24,020 | $ | 23,000 | $ | 1,020 | 4.4 | % |
Incentive compensation | 3,257 | 2,895 | 362 | 12.5 | % | |||
Benefits and other compensation costs | 7,027 | 6,668 | 359 | 5.4 | % | |||
Total salaries and benefits expense | 34,304 | 32,563 | 1,741 | 5.3 | % | |||
Occupancy | 3,951 | 4,160 | (209) | (5.0) | % | |||
Data processing and software | 5,107 | 4,032 | 1,075 | 26.7 | % | |||
Equipment | 1,356 | 1,383 | (27) | (2.0) | % | |||
Intangible amortization | 1,030 | 1,656 | (626) | (37.8) | % | |||
Advertising | 762 | 759 | 3 | 0.4 | % | |||
ATM and POS network charges | 1,661 | 1,709 | (48) | (2.8) | % | |||
Professional fees | 1,340 | 1,589 | (249) | (15.7) | % | |||
Telecommunications | 511 | 595 | (84) | (14.1) | % | |||
Regulatory assessments and insurance | 1,251 | 792 | 459 | 58.0 | % | |||
Postage | 308 | 299 | 9 | 3.0 | % | |||
Operational loss | 352 | 435 | (83) | (19.1) | % | |||
Courier service | 480 | 339 | 141 | 41.6 | % | |||
Gain on sale or acquisition of foreclosed assets | (38) | - | (38) | n/m | ||||
Loss on disposal of fixed assets | 5 | - | 5 | n/m | ||||
Other miscellaneous expense | 4,124 | 3,483 | 641 | 18.4 | % | |||
Total other non-interest expense | 22,200 | 21,231 | 969 | 4.6 | % | |||
Total non-interest expense | $ | 56,504 | $ | 53,794 | $ | 2,710 | 5.0 | % |
Average full-time equivalent staff | 1,188 | 1,219 | (31) | (2.5) | % |
Three months ended March 31, |
Provision for Income Taxes
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Investor Contact
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About TriCo Bancshares
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Forward-Looking Statements
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TriCo Bancshares-Condensed Consolidated Financial Data (unaudited)
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(dollars in thousands, except per share data) | Three months ended | |||||||||
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
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Revenue and Expense Data | ||||||||||
Interest income | $ | 115,417 | $ | 115,909 | $ | 112,380 | $ | 107,158 | $ | 102,907 |
Interest expense | 32,681 | 29,292 | 24,257 | 18,557 | 9,571 | |||||
Net interest income | 82,736 | 86,617 | 88,123 | 88,601 | 93,336 | |||||
Provision for credit losses | 4,305 | 5,990 | 4,155 | 9,650 | 4,195 | |||||
Noninterest income: | ||||||||||
Service charges and fees | 12,637 | 12,848 | 13,075 | 12,968 | 11,197 | |||||
Loss on sale of investment securities | - | (120) | - | - | (164) | |||||
Other income | 3,134 | 3,312 | 2,909 | 2,773 | 2,602 | |||||
Total noninterest income | 15,771 | 16,040 | 15,984 | 15,741 | 13,635 | |||||
Noninterest expense: | ||||||||||
Salaries and benefits | 34,304 | 34,055 | 34,463 | 34,714 | 32,563 | |||||
Occupancy and equipment | 5,307 | 5,358 | 5,451 | 5,427 | 5,543 | |||||
Data processing and network | 6,768 | 6,880 | 6,852 | 6,540 | 5,741 | |||||
Other noninterest expense | 10,125 | 13,974 | 11,112 | 14,562 | 9,947 | |||||
Total noninterest expense | 56,504 | 60,267 | 57,878 | 61,243 | 53,794 | |||||
Total income before taxes | 37,698 | 36,400 | 42,074 | 33,449 | 48,982 | |||||
Provision for income taxes | 9,949 | 10,325 | 11,484 | 8,557 | 13,149 | |||||
Net income | $ | 27,749 | $ | 26,075 | $ | 30,590 | $ | 24,892 | $ | 35,833 |
Share Data | ||||||||||
Basic earnings per share | $ | 0.83 | $ | 0.78 | $ | 0.92 | $ | 0.75 | $ | 1.08 |
Diluted earnings per share | $ | 0.83 | $ | 0.78 | $ | 0.92 | $ | 0.75 | $ | 1.07 |
Dividends per share | $ | 0.33 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 |
Book value per common share | $ | 35.06 | $ | 34.86 | $ | 32.18 | $ | 32.86 | $ | 32.84 |
Tangible book value per common share (1) | $ | 25.60 | $ | 25.39 | $ | 22.67 | $ | 23.28 | $ | 23.22 |
Shares outstanding | 33,168,770 | 33,268,102 | 33,263,324 | 33,259,260 | 33,195,250 | |||||
Weighted average shares | 33,245,377 | 33,266,959 | 33,262,798 | 33,219,168 | 33,295,750 | |||||
Weighted average diluted shares | 33,370,118 | 33,351,737 | 33,319,291 | 33,301,548 | 33,437,680 | |||||
Credit Quality | ||||||||||
Allowance for credit losses to gross loans | 1.83 | % | 1.79 | % | 1.73 | % | 1.80 | % | 1.69 | % |
Loans past due 30 days or more | $ | 16,474 | $ | 19,415 | $ | 8,072 | $ | 9,483 | $ | 7,891 |
Total nonperforming loans | $ | 34,242 | $ | 31,891 | $ | 29,799 | $ | 37,592 | $ | 16,025 |
Total nonperforming assets | $ | 36,735 | $ | 34,595 | $ | 32,651 | $ | 40,506 | $ | 19,464 |
Loans charged-off | $ | 1,275 | $ | 749 | $ | 5,357 | $ | 276 | $ | 1,758 |
Loans recovered | $ | 132 | $ | 419 | $ | 720 | $ | 218 | $ | 170 |
Selected Financial Ratios | ||||||||||
Return on average total assets | 1.13 | % | 1.05 | % | 1.23 | % | 1.01 | % | 1.47 | % |
Return on average equity | 9.50 | % | 9.43 | % | 10.91 | % | 8.98 | % | 13.36 | % |
Average yield on loans | 5.72 | % | 5.64 | % | 5.52 | % | 5.38 | % | 5.21 | % |
Average yield on interest-earning assets | 5.13 | % | 5.09 | % | 4.94 | % | 4.78 | % | 4.63 | % |
Average rate on interest-bearing deposits | 1.83 | % | 1.62 | % | 1.36 | % | 0.95 | % | 0.43 | % |
Average cost of total deposits | 1.21 | % | 1.05 | % | 0.86 | % | 0.58 | % | 0.25 | % |
Average cost of total deposits and other borrowings | 1.47 | % | 1.28 | % | 1.05 | % | 0.80 | % | 0.38 | % |
Average rate on borrowings & subordinated debt | 5.35 | % | 5.26 | % | 4.96 | % | 4.92 | % | 4.74 | % |
Average rate on interest-bearing liabilities | 2.24 | % | 2.01 | % | 1.71 | % | 1.37 | % | 0.74 | % |
Net interest margin (fully tax-equivalent) (1) | 3.68 | % | 3.81 | % | 3.88 | % | 3.96 | % | 4.20 | % |
Loans to deposits | 85.14 | % | 86.73 | % | 83.76 | % | 80.55 | % | 80.02 | % |
Efficiency ratio | 57.36 | % | 58.71 | % | 55.59 | % | 58.69 | % | 50.29 | % |
Supplemental Loan Interest Income Data | ||||||||||
Discount accretion on acquired loans | $ | 1,332 | $ | 1,459 | $ | 1,324 | $ | 1,471 | $ | 1,397 |
All other loan interest income (1) | $ | 95,153 | $ | 94,382 | $ | 90,383 | $ | 85,276 | $ | 81,018 |
Total loan interest income (1) | $ | 96,485 | $ | 95,841 | $ | 91,707 | $ | 86,747 | $ | 82,415 |
TriCo Bancshares-Condensed Consolidated Financial Data (unaudited)
|
(dollars in thousands, except per share data) | ||||||||||
Balance Sheet Data |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
|||||
Cash and due from banks | $ | 82,836 | $ | 98,701 | $ | 111,099 | $ | 118,792 | $ | 110,335 |
Securities, available for sale, net | 2,076,494 | 2,155,138 | 2,176,854 | 2,323,011 | 2,408,452 | |||||
Securities, held to maturity, net | 127,811 | 133,494 | 139,058 | 145,117 | 152,067 | |||||
Restricted equity securities | 17,250 | 17,250 | 17,250 | 17,250 | 17,250 | |||||
Loans held for sale | 1,346 | 458 | 644 | 1,058 | 226 | |||||
Loans: | ||||||||||
Commercial real estate | 4,443,768 | 4,394,802 | 4,367,445 | 4,343,924 | 4,353,959 | |||||
Consumer | 1,303,757 | 1,313,268 | 1,288,810 | 1,252,225 | 1,233,797 | |||||
Commercial and industrial | 549,780 | 586,455 | 599,757 | 576,247 | 553,098 | |||||
Construction | 348,981 | 347,198 | 320,963 | 278,425 | 225,996 | |||||
Agriculture production | 145,159 | 144,497 | 123,472 | 61,337 | 47,062 | |||||
Leases | 9,250 | 8,250 | 8,219 | 8,582 | 8,509 | |||||
Total loans, gross | 6,800,695 | 6,794,470 | 6,708,666 | 6,520,740 | 6,422,421 | |||||
Allowance for credit losses | (124,394) | (121,522) | (115,812) | (117,329) | (108,407) | |||||
Total loans, net | 6,676,301 | 6,672,948 | 6,592,854 | 6,403,411 | 6,314,014 | |||||
Premises and equipment | 71,001 | 71,347 | 71,760 | 72,619 | 72,096 | |||||
Cash value of life insurance | 137,695 | 136,892 | 136,016 | 135,332 | 134,544 | |||||
Accrued interest receivable | 35,783 | 36,768 | 34,595 | 32,835 | 31,388 | |||||
Goodwill | 304,442 | 304,442 | 304,442 | 304,442 | 304,442 | |||||
Other intangible assets | 9,522 | 10,552 | 11,768 | 13,358 | 15,014 | |||||
Operating leases, right-of-use | 26,240 | 26,133 | 27,363 | 29,140 | 30,000 | |||||
Other assets | 247,046 | 245,966 | 273,303 | 257,056 | 252,566 | |||||
Total assets | $ | 9,813,767 | $ | 9,910,089 | $ | 9,897,006 | $ | 9,853,421 | $ | 9,842,394 |
Deposits: | ||||||||||
Noninterest-bearing demand deposits | $ | 2,600,448 | $ | 2,722,689 | $ | 2,857,512 | $ | 3,073,353 | $ | 3,236,696 |
Interest-bearing demand deposits | 1,742,875 | 1,731,814 | 1,746,882 | 1,751,998 | 1,635,706 | |||||
Savings deposits | 2,672,537 | 2,682,068 | 2,816,816 | 2,778,118 | 2,807,796 | |||||
Time certificates | 971,798 | 697,467 | 588,433 | 491,896 | 345,667 | |||||
Total deposits | 7,987,658 | 7,834,038 | 8,009,643 | 8,095,365 | 8,025,865 | |||||
Accrued interest payable | 10,224 | 8,445 | 6,688 | 3,655 | 1,643 | |||||
Operating lease liability | 28,299 | 28,261 | 29,527 | 31,377 | 32,228 | |||||
Other liabilities | 131,006 | 145,982 | 141,692 | 136,464 | 157,222 | |||||
Other borrowings | 392,409 | 632,582 | 537,975 | 392,714 | 434,140 | |||||
Junior subordinated debt | 101,120 | 101,099 | 101,080 | 101,065 | 101,051 | |||||
Total liabilities | 8,650,716 | 8,750,407 | 8,826,605 | 8,760,640 | 8,752,149 | |||||
Common stock | 696,464 | 697,349 | 696,369 | 695,305 | 695,168 | |||||
Retained earnings | 630,954 | 615,502 | 599,448 | 578,852 | 564,538 | |||||
Accumulated other comprehensive loss, net of tax | (164,367) | (153,169) | (225,416) | (181,376) | (169,461) | |||||
Total shareholders' equity | $ | 1,163,051 | $ | 1,159,682 | $ | 1,070,401 | $ | 1,092,781 | $ | 1,090,245 |
Quarterly Average Balance Data | ||||||||||
Average loans | $ | 6,785,840 | $ | 6,746,153 | $ | 6,597,400 | $ | 6,467,381 | $ | 6,413,958 |
Average interest-earning assets | $ | 9,066,537 | $ | 9,064,483 | $ | 9,070,639 | $ | 9,039,314 | $ | 9,045,311 |
Average total assets | $ | 9,855,797 | $ | 9,879,355 | $ | 9,874,240 | $ | 9,848,191 | $ | 9,878,927 |
Average deposits | $ | 7,821,044 | $ | 7,990,993 | $ | 8,043,101 | $ | 7,981,515 | $ | 8,218,576 |
Average borrowings and subordinated debt | $ | 685,802 | $ | 617,046 | $ | 550,344 | $ | 578,312 | $ | 378,676 |
Average total equity | $ | 1,174,592 | $ | 1,097,431 | $ | 1,112,404 | $ | 1,112,223 | $ | 1,087,473 |
Capital Ratio Data | ||||||||||
Total risk-based capital ratio | 15.0 | % | 14.7 | % | 14.5 | % | 14.5 | % | 14.5 | % |
Tier 1 capital ratio | 13.2 | % | 12.9 | % | 12.7 | % | 12.7 | % | 12.7 | % |
Tier 1 common equity ratio | 12.5 | % | 12.2 | % | 12.0 | % | 12.0 | % | 12.0 | % |
Tier 1 leverage ratio | 11.0 | % | 10.7 | % | 10.6 | % | 10.4 | % | 10.2 | % |
Tangible capital ratio (1) | 8.9 | % | 8.8 | % | 7.9 | % | 8.1 | % | 8.1 | % |
TriCo Bancshares-Non-GAAP Financial Measures (unaudited)
|
Three months ended | ||||||
(dollars in thousands) |
March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
|||
Net interest margin | ||||||
Acquired loans discount accretion, net: | ||||||
Amount (included in interest income) | $1,332 | $1,459 | $1,397 | |||
Effect on average loan yield | 0.08 | % | 0.09 | % | 0.09 | % |
Effect on net interest margin (FTE) | 0.06 | % | 0.06 | % | 0.06 | % |
Net interest margin (FTE) | 3.68 | % | 3.81 | % | 4.20 | % |
Net interest margin less effect of acquired loan discount accretion (Non-GAAP) | 3.62 | % | 3.75 | % | 4.14 | % |
Three months ended | ||||||
(dollars in thousands) |
March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
|||
Pre-tax pre-provision return on average assets or equity | ||||||
Net income (GAAP) | $27,749 | $26,075 | $35,833 | |||
Exclude provision for income taxes | 9,949 | 10,325 | 13,149 | |||
Exclude provision for credit losses | 4,305 | 5,990 | 4,195 | |||
Net income before income tax and provision expense (Non-GAAP) | $42,003 | $42,390 | $53,177 | |||
Average assets (GAAP) | $9,855,797 | $9,879,355 | $9,878,927 | |||
Average equity (GAAP) | $1,174,592 | $1,097,431 | $1,087,473 | |||
Return on average assets (GAAP) (annualized) | 1.13 | % | 1.05 | % | 1.47 | % |
Pre-tax pre-provision return on average assets (Non-GAAP) (annualized) | 1.71 | % | 1.70 | % | 2.18 | % |
Return on average equity (GAAP) (annualized) | 9.50 | % | 9.43 | % | 13.36 | % |
Pre-tax pre-provision return on average equity (Non-GAAP) (annualized) | 14.38 | % | 15.32 | % | 19.83 | % |
Three months ended | ||||||
(dollars in thousands) |
March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
|||
Return on tangible common equity | ||||||
Average total shareholders' equity | $1,174,592 | $1,097,431 | $1,087,473 | |||
Exclude average goodwill | 304,442 | 304,442 | 304,442 | |||
Exclude average other intangibles | 10,037 | 11,160 | 15,842 | |||
Average tangible common equity (Non-GAAP) | $860,113 | $781,829 | $767,189 | |||
Net income (GAAP) | $27,749 | $26,075 | $35,833 | |||
Exclude amortization of intangible assets, net of tax effect | 725 | 857 | 1,166 | |||
Tangible net income available to common shareholders (Non-GAAP) | $28,474 | $26,932 | $36,999 | |||
Return on average equity (GAAP) (annualized) | 9.50 | % | 9.43 | % | 13.36 | % |
Return on average tangible common equity (Non-GAAP) | 13.31 | % | 13.67 | % | 19.56 | % |
Three months ended | ||||||||||
(dollars in thousands) |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
|||||
Tangible shareholders' equity to tangible assets | ||||||||||
Shareholders' equity (GAAP) | $1,163,051 | $1,159,682 | $1,070,401 | $1,092,781 | $1,090,245 | |||||
Exclude goodwill and other intangible assets, net | 313,964 | 314,994 | 316,210 | 317,800 | 319,456 | |||||
Tangible shareholders' equity (Non-GAAP) | $849,087 | $844,688 | $754,191 | $774,981 | $770,789 | |||||
Total assets (GAAP) | $9,813,767 | $9,910,089 | $9,897,006 | $9,853,421 | $9,842,394 | |||||
Exclude goodwill and other intangible assets, net | 313,964 | 314,994 | 316,210 | 317,800 | 319,456 | |||||
Total tangible assets (Non-GAAP) | $9,499,803 | $9,595,095 | $9,580,796 | $9,535,621 | $9,522,938 | |||||
Shareholders' equity to total assets (GAAP) | 11.85 | % | 11.70 | % | 10.82 | % | 11.09 | % | 11.08 | % |
Tangible shareholders' equity to tangible assets (Non-GAAP) | 8.94 | % | 8.80 | % | 7.87 | % | 8.13 | % | 8.09 | % |
Three months ended | |||||
(dollars in thousands) |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
Tangible common shareholders' equity per share | |||||
Tangible shareholders' equity (Non-GAAP) | $849,087 | $844,688 | $754,191 | $774,981 | $770,789 |
Common shares outstanding at end of period | 33,168,770 | 33,268,102 | 33,263,324 | 33,259,260 | 33,195,250 |
Common shareholders' equity (book value) per share (GAAP) | $35.06 | $34.86 | $32.18 | $32.86 | $32.84 |
Tangible common shareholders' equity (tangible book value) per share (Non-GAAP) | $25.60 | $25.39 | $22.67 | $23.30 | $23.22 |