1Q24 Financial
Highlights
- Net income was $27.7 million compared to $26.1 million in
the trailing quarter; pre-tax pre-provision net revenue was $42.0
million compared to $42.4 million in the trailing quarter
- Deposit balances increased $153.6 million or 7.8%
(annualized) from the trailing quarter, respectively
- Average yield on earning assets was 5.13%, an increase of 4
basis points over the 5.09% in the trailing quarter
- Net interest margin was 3.68% in the recent quarter,
narrowing 13 basis points from 3.81% in the trailing quarter;
management expects that net interest margin will reach an
inflection point in the second half of 2024
- Non-interest bearing deposits averaged 33.8% of total
deposits during the first quarter of 2024
- The average cost of total deposits was 1.21%, an increase of
16 basis points as compared to 1.05% in the trailing quarter, and
an increase of 96 basis points from 0.25% in the same quarter of
the prior year; the Company's total cost of deposits have increased
117 basis points since FOMC rate actions began in March 2022, which
translates to a cycle-to-date deposit beta of 22.3%
TriCo Bancshares (NASDAQ: TCBK):
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."
Selected Financial
Highlights
- For the quarter ended March 31, 2024, the Company’s return on
average assets was 1.13%, while the return on average equity was
9.50%; for the trailing quarter ended December 31, 2023, the
Company’s return on average assets was 1.05%, while the return on
average equity was 9.43%.
- Diluted earnings per share were $0.83 for the first quarter of
2024, compared to $0.78 for the trailing quarter and $1.07 during
the first quarter of 2023.
- The loan to deposit ratio decreased to 85.1% as of March 31,
2024, as compared to 86.7% for the trailing quarter end, as a
result of deposit growth during the quarter.
- The efficiency ratio improved to 57.36% for the quarter ended
March 31, 2024, as compared to 58.71% for the trailing quarter end,
due to management's focus on expense control as well as the absence
of non-recurring costs in the quarter.
- The provision for credit losses was approximately $4.3 million
during the quarter ended March 31, 2024, as compared to $6.0
million during the trailing quarter end, reflecting the risks
associated with general economic trends and forecasts.
- The allowance for credit losses (ACL) to total loans was 1.83%
as of March 31, 2024, compared to 1.79% as of the trailing quarter
end, and 1.69% as of March 31, 2023. Non-performing assets to total
assets were 0.37% on March 31, 2024, as compared to 0.35% as of
December 31, 2023, and 0.20% at March 31, 2023. At March 31, 2024,
the ACL represented 363% of non-performing loans.
Financial results reported in this document are preliminary and
unaudited. Final financial results and other disclosures will be
reported on Form 10-Q for the period ended March 31, 2024, and may
differ materially from the results and disclosures in this document
due to, among other things, the completion of final review
procedures, the occurrence of subsequent events, or the discovery
of additional information.
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,
(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
Total loans outstanding was $6.8 billion as of March 31, 2024,
an organic increase of 5.9% over March 31, 2023. As compared to
December 31, 2023, total loans outstanding increased during the
quarter by $6.2 million or 0.4% annualized. As the Company
continued with its balance sheet augmentation strategies,
investments decreased by $84.3 million and $356.2 million for the
three and twelve month periods ended March 31, 2024 and ending the
quarter with a balance of $2.22 billion or 22.6% of total assets.
Quarterly average earning assets to quarterly total average assets
was 92.0% on March 31, 2024, compared to 91.6% at March 31, 2023.
The loan-to-deposit ratio was 85.1% on March 31, 2024, as compared
to 80.0% at March 31, 2023. The Company did not utilize brokered
deposits during 2024 or 2023 and continues to rely on organic
deposit growth and short-term borrowings to fund cash flow timing
differences.
Total shareholders' equity increased by $3.4 million during the
quarter ended March 31, 2024, as net income of $27.7 million was
partially offset by a $11.2 million change in accumulated other
comprehensive losses, and cash dividend payments on common stock of
approximately $10.9 million. As a result, the Company’s book value
grew to $35.06 per share at March 31, 2024, compared to $32.84 at
March 31, 2023. The Company’s tangible book value per share, a
non-GAAP measure, calculated by subtracting goodwill and other
intangible assets from total shareholders’ equity and dividing that
sum by total shares outstanding, was $25.60 per share at March 31,
2024, as compared to $23.22 at March 31, 2023. As noted above,
changes in the fair value of available-for-sale investment
securities, net of deferred taxes continue to create moderate
levels of volatility in tangible book value per share.
Trailing Quarter Balance Sheet Change
Ending balances
March 31,
December 31,
Annualized
% Change
(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
)
Loans outstanding increased by $6.2 million or 0.4% on an
annualized basis during the quarter ended March 31, 2024. During
the quarter, loan originations/draws totaled approximately $325.5
million while payoffs/repayments of loans totaled $321.3 million,
which compares to originations/draws and payoffs/repayments during
the trailing quarter ended of $450.0 million and $368.0 million,
respectively. While origination volume decreased from the previous
quarter, activity levels continue to be lower relative to the
comparative period in 2023 due in part to disciplined pricing and
underwriting, as well as decreased borrower demand given economic
uncertainties. Investment security balances decreased $84.3 million
or 14.6% on an annualized basis as the result of net prepayments,
and maturities, collectively totaling approximating $66.4 million,
in addition to net decreases in the market value of securities of
$15.9 million. For the foreseeable future, management intends to
utilize cash flows from the investment security portfolio and
organic deposit growth to support loan growth or reduce borrowings,
thus driving an improved mix of earning assets. Deposit balances
increased by $153.6 million or 7.8% annualized during the period,
led by growth within time deposits. Proceeds from the call or
maturity of investment securities, and growth in deposits, during
the quarter supported a net decrease of $240.2 million in
short-term borrowings, which totaled $392.4 million at March 31,
2024.
Average Trailing Quarter Balance Sheet Change
Quarterly average balances for the period
ended
March 31,
December 31,
Annualized
% Change
(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
)
Loan balances increased as a result of organic activities by
approximately $378.3 million or 5.9% during the twelve-month period
ending March 31, 2024. Over the same period deposit balances have
declined by $38.2 million or 0.5%. The Company has offset these
declines through the deployment of excess cash balances, runoff of
investment security balances, and proceeds from short-term Federal
Home Loan Bank (FHLB) borrowings.
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
1,435,990
1,558,506
1,883,353
Cash held or in transit with FRB
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
On March 31, 2024, the Company's primary sources of liquidity
represented 50% of total deposits and 163% of estimated total
uninsured (excluding collateralized municipal deposits and
intercompany balances) deposits, respectively. As secondary sources
of liquidity, the Company's held-to-maturity investment securities
had a fair value of $118.5 million, including approximately $9.3
million in net unrealized losses.
Net Interest Income and Net Interest
Margin
During the twelve-month period ended March 31, 2024, the Federal
Open Market Committee's (FOMC) actions have resulted in an increase
in the Fed Funds Rate by approximately 50 basis points. During the
same period the Company's yield on total loans increased 51 basis
points to 5.72% for the three months ended March 31, 2024, from
5.21% for the three months ended March 31, 2023. The tax equivalent
yield on the Company's investment security portfolio was 3.38% for
the quarter ended March 31, 2024, an increase of 17 basis points
from the 3.21% for the three months ended March 31, 2023. The cost
of total interest-bearing deposits and total interest-bearing
liabilities increased by 140 basis points and 150 basis points,
respectively, between the three-month periods ended March 31, 2024
and 2023. Since FOMC rate actions began in March 2022, the
Company's cost of total deposits has increased 117 basis points
which translates to a cycle to date deposit beta of 22.3%.
The Company continues to manage its cost of deposits through the
use of various pricing and product mix strategies. As of March 31,
2024, December 31, 2023, and March 31, 2023, deposits priced
utilizing these strategies totaled $1.4 billion, $1.3 billion and
$0.7 billion, respectively, and carried weighted average rates of
3.75%, 3.60%, and 2.68%, respectively.
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)
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)
3.62
%
3.75
%
(0.13
)%
Three months ended
March 31,
(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)
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)
3.62
%
4.14
%
(0.52
)%
(1)
Certain information included herein is
presented on a fully tax-equivalent (FTE) basis and / or to present
additional financial details which may be desired by users of this
financial information. The Company believes the use of these
non-generally accepted accounting principles (non-GAAP) measures
provide additional clarity in assessing its results, and the
presentation of these measures are common practice within the
banking industry. See additional information related to non-GAAP
measures at the back of this document.
Analysis Of Change In Net Interest
Margin On Earning Assets
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
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)
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)
2.89
%
3.08
%
3.89
%
Net interest income and margin (1) (3)
$
83,011
3.68
%
$
86,977
3.81
%
$
93,728
4.20
%
(1)
Fully taxable equivalent (FTE). All yields
and rates are calculated using specific day counts for the period
and year as applicable.
(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 March
31, 2024, decreased $4.0 million or 4.6% to $83.0 million compared
to $87.0 million during the three months ended December 31, 2023.
In addition, net interest margin declined 13 basis points to 3.68%,
compared to the trailing quarter. The decrease in net interest
income is primarily attributed to an additional $2.4 million or
11.5% in deposit interest expense due to changes in product mix as
customers continue to be drawn towards higher yielding term deposit
accounts. Deposit cost increases during the current quarter were
also influenced by continued competitive pricing pressures. Net
interest income for the quarter was also impacted by an increase of
$1.0 million in other borrowings costs and declines in investment
income totaling $1.0 million, with a partial offset from increased
loan income of $0.6 million.
As compared to the same quarter in the prior year, average loan
yields increased 51 basis points from 5.21% during the three months
ended March 31, 2023, to 5.72% during the three months ended March
31, 2024. The accretion of discounts from acquired loans added 6
basis points to loan yields during each of the quarters ended March
31, 2024 and March 31, 2023. The rates paid on interest bearing
deposits increased by 21 basis points during the quarter ended
March 31, 2024, compared to the trailing quarter. The cost of
interest-bearing deposits increased by 140 basis points between the
quarter ended March 31, 2024, and the same quarter of the prior
year. In addition, the average balance of noninterest-bearing
deposits decreased by $170.3 million quarter over quarter and
decreased by $725.8 million from three-month average for the period
ended March 31, 2023 amidst a continued migration of customer funds
to interest-bearing products. As of March 31, 2024, the ratio of
average total noninterest-bearing deposits to total average
deposits was 33.8%, as compared to 35.2% and 41.0% on December 31,
2023 and March 31, 2023, respectively.
Interest Rates and Earning Asset
Composition
As of March 31, 2024, the Company's loan portfolio consisted of
approximately $6.8 billion in outstanding principal with a weighted
average coupon rate of 5.47%. During the three-month periods ending
March 31, 2024, December 31, 2023, and March 31, 2023, the weighted
average coupon on loan production in the quarter was 7.78%, 7.54%
and 6.91%, respectively. Included in the March 31, 2024 total loans
are adjustable rate loans totaling $3.6 billion, of which, $974.1
million are considered floating based on the Wall Street Prime
index. In addition, the Company holds certain investment securities
with fair values totaling $345.6 million which are subject to
repricing on not less than a quarterly basis.
Asset Quality and Credit Loss
Provisioning
During the three months ended March 31, 2024, the Company
recorded a provision for credit losses of $4.3 million, as compared
to $6.0 million during the trailing quarter, and $4.2 million
during the first quarter of 2023.
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
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
The allowance for credit losses (ACL) was $124.4 million or
1.83% of total loans as of March 31, 2024. The provision for credit
losses on loans of $4.0 million during the recent quarter was the
net effect of charge-offs and increases in reserves for qualitative
factors and changes in quantitative reserves under the cohort
model, inclusive of a $1.6 million decrease in specific reserves
for individually evaluated credits. Similar to prior quarters, the
provision for credit losses of $4.3 million during the three months
ended March 31, 2024, was largely attributed to risks associated
with the qualitative components of the ACL model as compared to any
significant deterioration in credit quality. For the current
quarter, the qualitative components of the ACL that contributed to
a net increase in required reserves primarily related to trends in
unemployment and general economic trends that are inconsistent with
those desired by the FOMC. The quantitative components of the ACL
collectively decreased reserve requirements by approximately $1.4
million over the trailing quarter, primarily attributed to the
charge-off or improvement in risk grades for credits previously
associated with specific reserves.
The Company utilizes a forecast period of approximately eight
quarters and obtains the forecast data from publicly available
sources as of the balance sheet date. This forecast data continues
to evolve and includes improving shifts in the magnitude of changes
for both the unemployment and GDP factors leading up to the balance
sheet date. Despite continued declines on a year over year
comparative basis, core inflation remains elevated from wage
pressures, and higher living costs such as housing, energy and food
prices. Management notes the rapid intervals of rate increases by
the Federal Reserve may create repricing risk for certain borrowers
and continued inversion of the yield curve, creates informed
expectations of the US potentially entering a recession within 12
months. While projected cuts in interest rates from the Federal
Reserve during 2024 may improve this outlook, the uncertainty
associated with the extent and timing of these potential reductions
has inhibited a change to forecasted reserve levels. As a result,
management continues to believe that certain credit weaknesses are
likely present in the overall economy and that it is appropriate to
maintain a reserve level that incorporates such risk factors.
Loans past due 30 days or more decreased by $2.9 million during
the quarter ended March 31, 2024, to $16.5 million, as compared to
$19.4 million at December 31, 2023. Of the total $16.5 million in
loans identified as past due, approximately $4.7 million is less
than 90 days past due, the majority of which is well-secured.
Non-performing loans were $34.2 million at March 31, 2024, an
increase of $2.4 million from $31.9 million as of December 31,
2023, and an increase of $18.2 million from $16.0 million as of
March 31, 2023. The increase in non-performing loans as compared to
the trailing quarter is concentrated between non-owner occupied
commercial real estate and agriculture lending, specifically the
result of declines in commodity prices and therefore, expected
revenue available to borrowers from harvest proceeds. Management
continues to proactively work with these borrowers to identify
actionable and appropriate resolution strategies which are
customary for the industries. Of the $34.2 million loans designated
as non-performing as of March 31, 2024, approximately $21.3 million
are current with respect to payments required under their original
loan agreements.
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
%
The ratio of classified loans to total loans of 1.12% as of
March 31, 2024 decreased 17 basis points from December 31, 2023 and
increased 12 basis points from the comparative quarter ended 2023.
The improvement in classified loans outstanding was spread amongst
several substandard relationships primarily within commercial real
estate. As a percentage of total loans outstanding, classified
assets remain consistent with volumes experienced prior to the
recent quantitative easing cycle spurred by the COVID pandemic and
reflect management's historically conservative approach to credit
risk monitoring. Further, management has taken action to
proactively assess the repayment capacity of borrowers that will
likely be subject to rate resets in the near term. To date this
analysis as well as management's observations of loans that have
experienced a rate reset, have not resulted in the need to provide
any concessions to borrowers. The Company's combined criticized
loan balances decreased during the quarter by $6.9 million to
$184.4 million as of March 31, 2024, and management believes the
associated credit risk has been adequately reserved against.
As of March 31, 2024, other real estate owned consisted of 10
properties with a carrying value of approximately $2.5 million, a
decrease of $0.2 million from the trailing quarter as a result of
deterioration in property values.
Non-performing assets of $36.7 million at March 31, 2024,
represented 0.37% of total assets, a change from the $34.6 million
or 0.35% and $19.5 million or 0.20% as of December 31, 2023 and
March 31, 2023, respectively.
Allocation of Credit Loss Reserves by Loan Type
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
%
In addition to the allowance for credit losses above, the
Company has acquired various performing loans whose fair value as
of the acquisition date was determined to be less than the
principal balance owed on those loans. This difference represents
the collective discount of credit, interest rate and liquidity
measurements which is expected to be amortized over the life of the
loans. As of March 31, 2024, the unamortized discount associated
with acquired loans totaled $23.3 million, which, when combined
with the total allowance for credit losses above, represents 2.26%
of total loans.
Non-interest Income
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
)%
Non-interest income decreased $0.3 million or 1.7% to $15.8
million during the three months ended March 31, 2024, compared to
$16.0 million during the quarter ended December 31, 2023. The value
of mortgage servicing rights changed by $0.3 million or 103.8%
attributed to an increase in the reference rates during the
quarter. Other income increased by $0.1 million or 41.6% attributed
to $0.2 million in realized gains on alternative investments.
However, these benefits were offset by fewer transactions that
drive interchange and service fee income, where revenues from these
sources declined by $0.5 million.
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
%
Non-interest income increased $2.1 million or 15.7% to $15.8
million during the three months ended March 31, 2024, compared to
$13.6 million during the comparative quarter ended March 31, 2023.
Service charges on deposit accounts increased by $1.2 million or
35.9% as compared to the equivalent period in 2023 following $0.9
million in waived or reversed fees as a courtesy to customers in
the prior year.
Non-interest Expense
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
)%
Non-interest expense for the quarter ended March 31, 2024,
decreased $3.8 million or 6.2% to $56.5 million as compared to
$60.3 million during the trailing quarter ended December 31, 2023.
Total salaries and benefits expense increased by $0.2 million or
0.7%, reflecting the reduction of $0.6 million in incentive
compensation paid on production and sales volumes, offset by an
increase of $0.8 million in benefits and other routine compensation
expenses as it is common to observe seasonally higher benefit costs
in the first quarter of any calendar year. Professional fees
declined by $0.7 million or 34.1%, primarily due to timing
differences related to legal and consulting projects. Other
miscellaneous expenses decreased by $2.5 million or 38.0% to a more
normalized quarterly run rate following several non-recurring
expenses during the fourth quarter of 2023.
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
)%
Non-interest expense increased $2.7 million or 5.0% to $56.5
million during the three months ended March 31, 2024, as compared
to $53.8 million for the quarter ended March 31, 2023. Total
salaries and benefits expense increased by $1.7 million or 5.3% to
$34.3 million, largely from annual compensation adjustments and
other routine increases in benefits and compensation. Salaries
expense was also impacted by an increase in average compensation
per employee as various strategic talent acquisitions were made in
order to further prepare the Company to execute its growth
objectives beyond $10 billion in total assets. Data processing and
software expenses increased by $1.1 million or 26.7% related to
ongoing investments in the Company's data management and security
infrastructure. Regulatory assessment charges increased $0.5
million or 58.0% following the increase in assessment rates
beginning in the second quarter of 2023.
Provision for Income
Taxes
The Company’s effective tax rate was 26.4% for the quarter and
year ended March 31, 2024, as compared to 28.4% for the year ended
December 31, 2023. Differences between the Company's effective tax
rate and applicable federal and state blended statutory rate of
approximately 29.6% are due to the proportion of non-taxable
revenues, non-deductible expenses, and benefits from tax credits as
compared to the levels of pre-tax earnings.
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 and loan production offices in communities throughout
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 ATMs,
online and mobile banking access. Brokerage services are provided
by Tri Counties Advisors through affiliation with Raymond James
Financial Services, Inc. Visit www.TriCountiesBank.com to learn
more.
Forward-Looking
Statements
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. 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 conditions of
the United States economy in general and the strength of the local
economies in which we conduct operations; the impact of any future
federal government shutdown and uncertainty regarding the federal
government’s debt limit or changes in, trade, monetary and fiscal
policies and laws, including interest rate policies of the Board of
Governors of the Federal Reserve System; the impacts of inflation,
interest rate, market and monetary fluctuations on the Company's
business condition and financial operating results; the impact of
changes in financial services industry policies, laws and
regulations; regulatory restrictions affecting our ability to
successfully market and price our products to consumers; the risks
related to the development, implementation, use and management of
emerging technologies, including artificial intelligence and
machine learning; extreme weather, natural disasters and other
catastrophic events that may or may not be caused by climate change
and their effects on the Company's customers and the economic and
business environments in which the Company operates; the impact of
a slowing U.S. economy, decreases in housing and commercial real
estate prices, and potentially increased unemployment on the
performance of our loan portfolio, the market value of our
investment securities and possible other-than-temporary impairment
of securities held by us due to changes in credit quality or rates;
the availability of, and cost of, sources of funding and the demand
for our products; adverse developments with respect to U.S. or
global economic conditions and other uncertainties, including the
impact of supply chain disruptions, commodities prices,
inflationary pressures and labor shortages on the economic recovery
and our business; the impacts of international hostilities, wars,
terrorism or geopolitical events; adverse developments in the
financial services industry generally such as the recent bank
failures and any related impact on depositor behavior or investor
sentiment; risks related to the sufficiency of liquidity; the
possibility that our recorded goodwill could become impaired, which
may have an adverse impact on our earnings and capital; the costs
or effects of mergers, acquisitions or dispositions we may make, as
well as whether we are able to obtain any required governmental
approvals in connection with any such activities, or identify and
complete favorable transactions in the future, and/or realize the
anticipated financial and business benefits; the regulatory and
financial impacts associated with exceeding $10 billion in total
assets; the negative impact on our reputation and profitability in
the event customers experience economic harm or in the event that
regulatory violations are identified; the ability to execute our
business plan in new markets; the future operating or financial
performance of the Company, including our outlook for future growth
and changes in the level and direction of our nonperforming assets
and charge-offs; the appropriateness of the allowance for credit
losses, including the assumptions made under our current expected
credit losses model; any deterioration in values of California real
estate, both residential and commercial; the effectiveness of the
Company's asset management activities managing the mix of earning
assets and in improving, resolving or liquidating lower-quality
assets; the effect of changes in the financial performance and/or
condition of our borrowers; changes in accounting standards and
practices; changes in consumer spending, borrowing and savings
habits; our ability to attract and maintain deposits and other
sources of liquidity; the effects of changes in the level or cost
of checking or savings account deposits on our funding costs and
net interest margin; increasing noninterest expense and its impact
on our financial performance; competition and innovation with
respect to financial products and services by banks, financial
institutions and non-traditional competitors including retail
businesses and technology companies; the challenges of attracting,
integrating and retaining key employees; the vulnerability of the
Company's operational or security systems or infrastructure, the
systems of third-party vendors or other service providers with whom
the Company contracts, and the Company's customers to unauthorized
access, computer viruses, phishing schemes, spam attacks, human
error, natural disasters, power loss and data/security breaches and
the cost to defend against and respond to such incidents; the
impact of the 2023 cyber security ransomware incident on our
operations and reputation; increased data security risks due to
work from home arrangements and email vulnerability; failure to
safeguard personal information, and any resulting litigation; the
effect of a fall in stock market prices on our brokerage and wealth
management businesses; the transition from the LIBOR to new
interest rate benchmarks; the emergence or continuation of
widespread health emergencies or pandemics; 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. There can be no assurance that future developments
affecting us will be the same as those anticipated by management.
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, 2023, which has been
filed with the Securities and Exchange Commission (the “SEC”) and
all subsequent filings with the SEC under Sections 13(a), 13(c),
14, and 15(d) of the Securities Act of 1934, as amended. Such
filings are also 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. We undertake no obligation (and expressly disclaim
any such obligation) to update or alter our forward-looking
statements, whether as a result of new information, future events,
or otherwise, except as required by law.
TriCo Bancshares—Condensed Consolidated Financial Data
(unaudited)
(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
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
(1) Non-GAAP measure
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
%
(1) Non-GAAP measure
TriCo Bancshares—Non-GAAP Financial
Measures (unaudited)
In addition to results presented in
accordance with generally accepted accounting principles in the
United States of America (GAAP), this press release contains
certain non-GAAP financial measures. Management has presented these
non-GAAP financial measures in this press release because it
believes that they provide useful and comparative information to
assess trends in the Company's core operations reflected in the
current quarter's results and facilitate the comparison of our
performance with the performance of our peers. However, these
non-GAAP financial measures are supplemental and are not a
substitute for any analysis based on GAAP. Where applicable,
comparable earnings information using GAAP financial measures is
also presented. Because not all companies use the same
calculations, our presentation may not be comparable to other
similarly titled measures as calculated by other companies. For a
reconciliation of these non-GAAP financial measures, see the tables
below:
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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425962539/en/
Investor Contact Peter G.
Wiese, EVP & CFO, (530) 898-0300
Grafico Azioni TriCo Bancshares (NASDAQ:TCBK)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni TriCo Bancshares (NASDAQ:TCBK)
Storico
Da Feb 2024 a Feb 2025
