3Q24 Financial
Highlights
- Net income was $29.1 million or $0.88 per
diluted share as compared to $29.0 million or $0.87 per
diluted share in the trailing quarter
- Deposit balances decreased $13.1 million or 0.7%
(annualized) from the trailing quarter and have increased $27.4
million or 0.3% (annualized) from the same quarter of the prior
year
- Average yield on earning assets was 5.26%, an increase of 2
basis points over the 5.24% in the trailing quarter
- Net interest margin (FTE) was 3.71% in the recent
quarter, an increase of 3 basis points over 3.68% in the
trailing quarter
- Non-interest bearing deposits averaged 31.7% of total
deposits during the quarter
- The average cost of total deposits was 1.52%, an increase of
7 basis points as compared to 1.45% in the trailing quarter, and an
increase of 66 basis points from 0.86% in the same quarter
of the prior year; the Company's total cost of deposits have
increased 148 basis points since FOMC rate actions began in March
2022, which translates to a cycle-to-date deposit beta of
31.2%
TriCo Bancshares (NASDAQ: TCBK):
Executive Commentary:
“Our financial performance for the third quarter demonstrates
the effectiveness and strength of adhering to a long term plan and
our teams' consistent ability to execute. In addition, recent
strategic hires have been transitioning at an accelerated pace and
we are looking forward to their more meaningful impact in 2025,"
said Rick Smith, President and CEO.
Peter Wiese, EVP and CFO added, “While both net interest margin
and net interest income expanded during the quarter, we continue to
execute incremental balance sheet strategies to minimize the
forecasted impacts of recent and anticipated interest rate cuts.
More notably, the reshaping of the yield curve with less inversion
will likely provide longer term benefits to revenue and earnings
per share growth.”
Selected Financial
Highlights
- For the quarter ended September 30, 2024, the Company’s return
on average assets was 1.20%, while the return on average equity was
9.52%; for the trailing quarter ended June 30, 2024, the Company’s
return on average assets was 1.19%, while the return on average
equity was 9.99%
- Diluted earnings per share were $0.88 for the third quarter of
2024, compared to $0.87 for the trailing quarter and $0.92 during
the third quarter of 2023
- The loan to deposit ratio decreased to 83.2% as of September
30, 2024, as compared to 83.8% for the trailing quarter end, as a
result of loan contraction during the quarter
- The efficiency ratio was 60.02% for the quarter ended September
30, 2024, as compared to 59.61% for the trailing quarter
- The provision for credit losses was approximately $0.2 million
during the quarter ended September 30, 2024, as compared to $0.4
million during the trailing quarter end, with reserves on
individually analyzed loans increasing during the current
quarter
- The allowance for credit losses (ACL) to total loans was 1.85%
as of September 30, 2024, compared to 1.83% as of the trailing
quarter end, and 1.73% as of September 30, 2023. Non-performing
assets to total assets were 0.45% on September 30, 2024, as
compared to 0.36% as of June 30, 2024, and 0.33% at September 30,
2023. At September 30, 2024, the ACL represented 297% of
non-performing loans
The 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 September 30, 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
September 30, 2024
June 30, 2024
(dollars and shares in thousands, except
per share data)
$ Change
% Change
Net interest income
$
82,611
$
81,997
$
614
0.7
%
Provision for credit losses
(220
)
(405
)
185
(45.7
)%
Noninterest income
16,495
15,866
629
4.0
%
Noninterest expense
(59,487
)
(58,339
)
(1,148
)
2.0
%
Provision for income taxes
(10,348
)
(10,085
)
(263
)
2.6
%
Net income
$
29,051
$
29,034
$
17
0.1
%
Diluted earnings per share
$
0.88
$
0.87
$
0.01
1.1
%
Dividends per share
$
0.33
$
0.33
$
—
—
%
Average common shares
32,993
33,121
(128
)
(0.4
)%
Average diluted common shares
33,137
33,244
(107
)
(0.3
)%
Return on average total assets
1.20
%
1.19
%
Return on average equity
9.52
%
9.99
%
Efficiency ratio
60.02
%
59.61
%
Three months ended September
30,
(dollars and shares in thousands, except
per share data)
2024
2023
$ Change
% Change
Net interest income
$
82,611
$
88,123
$
(5,512
)
(6.3
)%
Provision for credit losses
(220
)
(4,155
)
3,935
(94.7
)%
Noninterest income
16,495
15,984
511
3.2
%
Noninterest expense
(59,487
)
(57,878
)
(1,609
)
2.8
%
Provision for income taxes
(10,348
)
(11,484
)
1,136
(9.9
)%
Net income
$
29,051
$
30,590
$
(1,539
)
(5.0
)%
Diluted earnings per share
$
0.88
$
0.92
$
(0.04
)
(4.3
)%
Dividends per share
$
0.33
$
0.30
$
0.03
10.0
%
Average common shares
32,993
33,263
(270
)
(0.8
)%
Average diluted common shares
33,137
33,319
(182
)
(0.5
)%
Return on average total assets
1.20
%
1.23
%
Return on average equity
9.52
%
10.91
%
Efficiency ratio
60.02
%
55.59
%
Nine months ended September
30,
(dollars and shares in thousands)
2024
2023
$ Change
% Change
Net interest income
$
247,344
$
270,060
$
(22,716
)
(8.4
)%
Provision for credit losses
(4,930
)
(18,000
)
13,070
(72.6
)%
Noninterest income
48,132
45,360
2,772
6.1
%
Noninterest expense
(174,330
)
(172,915
)
(1,415
)
0.8
%
Provision for income taxes
(30,382
)
(33,190
)
2,808
(8.5
)%
Net income
$
85,834
$
91,315
$
(5,481
)
(6.0
)%
Diluted earnings per share
$
2.58
$
2.74
$
(0.16
)
(5.8
)%
Dividends per share
$
0.99
$
0.90
$
0.09
10.0
%
Average common shares
33,119
33,259
(140
)
(0.4
)%
Average diluted common shares
33,251
33,356
(105
)
(0.3
)%
Return on average total assets
1.17
%
1.24
%
Return on average equity
9.67
%
11.06
%
Efficiency ratio
59.00
%
54.82
%
Balance Sheet Data
Total loans outstanding were $6.7 billion as of September 30,
2024, a decrease of $24.8 million or 0.4% over September 30, 2023,
and decreased by $58.6 million or 3.5% annualized as compared to
the trailing quarter ended June 30, 2024. Investments increased by
$30.4 million and decreased by $216.7 million for the three and
twelve month periods ended September 30, 2024, and ended the
quarter with a balance of $2.12 billion or 21.5% of total assets.
Quarterly average earning assets to quarterly total average assets
was 92.0% on September 30, 2024, compared to 91.7% at September 30,
2023. The loan-to-deposit ratio was 83.2% on September 30, 2024, as
compared to 83.8% at September 30, 2023. The Company did not
utilize brokered deposits during 2024 or 2023 and continues to rely
on organic deposit customers and short-term borrowings to fund cash
flow timing differences.
Total shareholders' equity increased by $64.0 million during the
quarter ended September 30, 2024, as net income of $29.1 million
and a $44.5 million decrease in accumulated other comprehensive
losses was partially offset by cash dividend payments on common
stock of approximately $10.9 million. As a result, the Company’s
book value grew to $37.55 per share at September 30, 2024, compared
to $32.18 at September 30, 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 $28.09 per share
at September 30, 2024, as compared to $22.67 at September 30, 2023.
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
September 30, 2024
June 30, 2024
Annualized % Change
(dollars in thousands)
$ Change
Total assets
$
9,823,890
$
9,741,399
$
82,491
3.4
%
Total loans
6,683,891
6,742,526
(58,635
)
(3.5
)
Total investments
2,116,469
2,086,090
30,379
5.8
Total deposits
8,037,091
8,050,230
(13,139
)
(0.7
)
Total other borrowings
266,767
247,773
18,994
30.7
Loans outstanding decreased by $58.6 million or 3.5% on an
annualized basis during the quarter ended September 30, 2024.
During the quarter, loan originations/draws totaled approximately
$351.5 million while payoffs/repayments of loans totaled $418.8
million, which compares to originations/draws and
payoffs/repayments during the trailing quarter ended of $310.1
million and $368.7 million, respectively. Origination volume and
activity levels remain slightly 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.
The increase in payoffs/repayments as compared to the trailing
quarter was spread amongst numerous borrowers, regions and loan
types.
Investment security balances increased $30.4 million or 5.8% on
an annualized basis during the quarter as a result of security
purchases totaling $69.4 million, in addition to net increases in
the market value of securities of $63.2 million, partially offset
by net prepayments, and maturities, collectively totaling
approximating $99.3 million and, to a lesser extent, sales totaling
$3.0 million. Investment security purchases were comprised of
floating rate instruments tied to SOFR with an initial weighted
average coupon of 6.68% and a weighted average life of 5.9 years.
While management intends to primarily utilize cash flows from the
investment security portfolio and organic deposit growth to support
loan growth, excess liquidity will be utilized for purchases of
investment securities to support net interest income growth and net
interest margin expansion.
Deposit balances decreased by $13.1 million or 0.7% annualized
during the period, primarily due to declines in interest-bearing
demand deposits, partially offset by increases in time certificates
and savings deposits.
Other borrowings totaled $266.8 million at September 30, 2024,
representing a net increase of $19.0 million from the trailing
quarter. However, on balance sheet liquidity increased during the
quarter by $113.6 million to $320.1 million as of September 30,
2024.
Average Trailing Quarter Balance Sheet Change
Quarterly average balances for the period
ended
September 30, 2024
June 30, 2024
Annualized
% Change
(dollars in thousands)
$ Change
Total assets
$
9,666,979
$
9,782,228
$
(115,249
)
(4.7
)%
Total loans
6,690,326
6,792,303
(101,977
)
(6.0
)
Total investments
2,108,359
2,141,291
(32,932
)
(6.2
)
Total deposits
8,020,936
8,024,441
(3,505
)
(0.2
)
Total other borrowings
175,268
325,604
(150,336
)
(184.7
)
Year Over Year Balance Sheet Change
Ending balances
As of September 30,
% Change
(dollars in thousands)
2024
2023
$ Change
Total assets
$
9,823,890
$
9,897,006
$
(73,116
)
(0.7
)%
Total loans
6,683,891
6,708,666
(24,775
)
(0.4
)
Total investments
2,116,469
2,333,162
(216,693
)
(9.3
)
Total deposits
8,037,091
8,009,643
27,448
0.3
Total other borrowings
266,767
537,975
(271,208
)
(50.4
)
Primary Sources of
Liquidity
(dollars in thousands)
September 30, 2024
June 30, 2024
September 30, 2023
Borrowing capacity at correspondent banks
and FRB
$
2,757,640
$
2,998,009
$
2,927,065
Less: borrowings outstanding
(250,000
)
(225,000
)
(500,000
)
Unpledged available-for-sale (AFS)
investment securities
1,312,745
1,285,185
1,702,265
Cash held or in transit with FRB
274,908
163,809
72,049
Total primary liquidity
$
4,095,293
$
4,222,003
$
4,201,379
Estimated uninsured deposit balances
$
2,513,313
$
2,486,910
$
2,406,552
On September 30, 2024, the Company's primary sources of
liquidity represented 51% 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 $112.0 million, including approximately $5.3
million in net unrealized losses.
Net Interest Income and Net Interest
Margin
During the twelve-month period ended September 30, 2024, the
Company's yield on total loans increased 32 basis points to 5.83%
for the three months ended September 30, 2024, from 5.51% for the
three months ended September 30, 2023. The tax equivalent yield on
the Company's investment security portfolio was 3.46% for the
quarter ended September 30, 2024, an increase of 7 basis points
from the 3.39% for the three months ended September 30, 2023. The
cost of total interest-bearing deposits and total interest-bearing
liabilities increased by 87 basis points and 69 basis points,
respectively, between the three-month periods ended September 30,
2024 and 2023. Since FOMC rate actions began in March 2022, the
Company's cost of total deposits has increased 148 basis points
which translates to a cycle to date deposit beta of 31.2%.
The Company continues to manage its cost of deposits through the
use of various pricing and product mix strategies. As of September
30, 2024, December 31, 2023, and September 30, 2023, deposits
priced utilizing these strategies totaled $1.4 billion, $1.3
billion and $1.2 billion, respectively, and carried weighted
average rates of 3.80%, 3.80%, and 3.53%, respectively.
Three months ended
September 30, 2024
June 30, 2024
(dollars in thousands)
Change
% Change
Interest income
$
117,347
$
117,032
$
315
0.3
%
Interest expense
(34,736
)
(35,035
)
299
(0.9
)%
Fully tax-equivalent adjustment (FTE)
(1)
269
275
(6
)
(2.2
)%
Net interest income (FTE)
$
82,880
$
82,272
$
608
0.7
%
Net interest margin (FTE)
3.71
%
3.68
%
Acquired loans discount accretion,
net:
Amount (included in interest income)
$
1,018
$
850
$
168
19.8
%
Net interest margin less effect of
acquired loan discount accretion(1)
3.66
%
3.64
%
0.02
%
Three months ended September
30,
(dollars in thousands)
2024
2023
Change
% Change
Interest income
$
117,347
$
112,380
$
4,967
4.4
%
Interest expense
(34,736
)
(24,257
)
(10,479
)
43.2
%
Fully tax-equivalent adjustment (FTE)
(1)
269
405
(136
)
(33.6
)%
Net interest income (FTE)
$
82,880
$
88,528
$
(5,648
)
(6.4
)%
Net interest margin (FTE)
3.71
%
3.88
%
Acquired loans discount accretion,
net:
Amount (included in interest income)
$
1,018
$
1,324
$
(306
)
(23.1
)%
Net interest margin less effect of
acquired loan discount accretion(1)
3.66
%
3.82
%
(0.16
)%
Nine months ended September
30,
(dollars in thousands)
2024
2023
Change
% Change
Interest income
$
349,796
$
322,445
$
27,351
8.5
%
Interest expense
(102,452
)
(52,385
)
(50,067
)
95.6
%
Fully tax-equivalent adjustment (FTE)
(1)
819
1,176
(357
)
(30.4
)%
Net interest income (FTE)
$
248,163
$
271,236
$
(23,073
)
(8.5
)%
Net interest margin (FTE)
3.69
%
4.01
%
Acquired loans discount accretion,
net:
Amount (included in interest income)
$
3,200
$
4,192
$
(992
)
(23.7
)%
Net interest margin less effect of
acquired loan discount accretion(1)
3.64
%
3.95
%
(0.31
)%
(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)
September 30, 2024
June 30, 2024
September 30, 2023
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Assets
Loans
$
6,690,326
$
98,085
5.83
%
$
6,792,303
$
98,229
5.82
%
$
6,597,400
$
91,707
5.51
%
Investments-taxable
1,972,859
17,188
3.47
%
2,003,124
17,004
3.41
%
2,246,569
18,990
3.35
%
Investments-nontaxable (1)
135,500
1,166
3.42
%
138,167
1,190
3.46
%
182,766
1,755
3.81
%
Total investments
2,108,359
18,354
3.46
%
2,141,291
18,194
3.42
%
2,429,335
20,745
3.39
%
Cash at Fed Reserve and other banks
93,538
1,177
5.01
%
68,080
884
5.22
%
26,654
333
4.96
%
Total earning assets
8,892,223
117,616
5.26
%
9,001,674
117,307
5.24
%
9,053,389
112,785
4.94
%
Other assets, net
774,756
780,554
820,851
Total assets
$
9,666,979
$
9,782,228
$
9,874,240
Liabilities and shareholders’ equity
Interest-bearing demand deposits
$
1,736,442
$
6,132
1.40
%
$
1,769,370
$
6,215
1.41
%
$
1,751,625
$
3,916
0.89
%
Savings deposits
2,686,303
13,202
1.96
%
2,673,272
12,260
1.84
%
2,790,197
9,526
1.35
%
Time deposits
1,055,612
11,354
4.28
%
1,016,190
10,546
4.17
%
535,715
3,937
2.92
%
Total interest-bearing deposits
5,478,357
30,688
2.23
%
5,458,832
29,021
2.14
%
5,077,537
17,379
1.36
%
Other borrowings
175,268
2,144
4.87
%
325,604
4,118
5.09
%
449,274
5,106
4.51
%
Junior subordinated debt
101,150
1,904
7.49
%
101,128
1,896
7.54
%
101,070
1,772
6.96
%
Total interest-bearing liabilities
5,754,775
34,736
2.40
%
5,885,564
35,035
2.39
%
5,627,881
24,257
1.71
%
Noninterest-bearing deposits
2,542,579
2,565,609
2,965,564
Other liabilities
155,115
161,731
168,391
Shareholders’ equity
1,214,510
1,169,324
1,112,404
Total liabilities and shareholders’
equity
$
9,666,979
$
9,782,228
$
9,874,240
Net interest rate spread (1) (2)
2.86
%
2.85
%
3.23
%
Net interest income and margin (1) (3)
$
82,880
3.71
%
$
82,272
3.68
%
$
88,528
3.88
%
(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
September 30, 2024, increased $0.6 million or 0.7% to $82.9 million
compared to $82.3 million during the three months ended June 30,
2024. Net interest margin totaled 3.71% for the three months ended
September 30, 2024, an increase of 3 basis points from the trailing
quarter. The increase in net interest income is primarily
attributed to a $2.0 million decline in interest expense on
borrowings due to a $150.3 million decrease in the average balance
of borrowings during the three months ended September 30, 2024
compared to the trailing quarter. This decline in borrowing expense
was partially offset by an increase in deposit interest expense
totaling $1.7 million related to changes in product mix, as
customers continued to migrate towards higher yielding term deposit
accounts during the quarter. Deposit cost increases during the
current quarter were also influenced by continued competitive
pricing pressures.
As compared to the same quarter in the prior year, average loan
yields increased 32 basis points from 5.51% during the three months
ended September 30, 2023, to 5.83% during the three months ended
September 30, 2024. The accretion of discounts from acquired loans
added 6 basis points and 8 basis points to loan yields during the
quarters ended September 30, 2024 and September 30, 2023,
respectively. The cost of interest-bearing deposits increased by 87
basis points between the quarter ended September 30, 2024, and the
same quarter of the prior year. In addition, the average balance of
noninterest-bearing deposits decreased by $423.0 million from the
three-month average for the period ended September 30, 2023 amidst
a continued migration of customer funds to interest-bearing
products.
For the quarter ended September 30, 2024, the ratio of average
total noninterest-bearing deposits to total average deposits was
31.7%, as compared to 32.0% and 36.9% for the quarters ended June
30, 2024 and September 30, 2023, respectively.
(dollars in thousands)
Nine months ended September 30,
2024
Nine months ended September 30,
2023
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Assets
Loans
$
6,755,916
$
292,799
5.79
%
$
6,493,585
$
260,868
5.37
%
Investments-taxable
2,034,336
52,021
3.42
%
2,328,883
56,681
3.25
%
Investments-nontaxable (1)
137,515
3,548
3.45
%
184,524
5,096
3.69
%
Total investments
2,171,851
55,569
3.42
%
2,513,407
61,777
3.29
%
Cash at Fed Reserve and other banks
58,792
2,247
5.11
%
27,606
976
4.73
%
Total earning assets
8,986,559
350,615
5.21
%
9,034,598
323,621
4.79
%
Other assets, net
781,406
832,501
Total assets
$
9,767,965
$
9,867,099
Liabilities and shareholders’ equity
Interest-bearing demand deposits
$
1,738,876
$
17,294
1.33
%
$
1,694,438
$
6,476
0.51
%
Savings deposits
2,670,555
36,362
1.82
%
2,818,817
20,616
0.98
%
Time deposits
961,577
29,582
4.11
%
413,359
6,889
2.23
%
Total interest-bearing deposits
5,371,008
83,238
2.07
%
4,926,614
33,981
0.92
%
Other borrowings
361,175
13,640
5.04
%
402,016
13,318
4.43
%
Junior subordinated debt
101,128
5,574
7.36
%
101,057
5,086
6.73
%
Total interest-bearing liabilities
5,833,311
102,452
2.35
%
5,429,687
52,385
1.29
%
Noninterest-bearing deposits
2,584,705
3,153,807
Other liabilities
163,704
179,483
Shareholders’ equity
1,186,245
1,104,122
Total liabilities and shareholders’
equity
$
9,767,965
$
9,867,099
Net interest rate spread (1) (2)
2.86
%
3.50
%
Net interest income and margin (1) (3)
$
248,163
3.69
%
$
271,236
4.01
%
(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.
Interest Rates and Earning Asset
Composition
As of September 30, 2024, the Company's loan portfolio consisted
of approximately $6.7 billion in outstanding principal with a
weighted average coupon rate of 5.49%. During the three-month
periods ending September 30, 2024, June 30, 2024, and September 30,
2023, the weighted average coupon on loan production in the quarter
was 7.63%, 7.98% and 7.31%, respectively. Included in the September
30, 2024, total loans are adjustable rate loans totaling $4.2
billion, of which, $891.6 million are considered floating based on
the Wall Street Prime index. In addition, the Company holds certain
investment securities with fair values totaling $371.1 million
which are subject to repricing on not less than a quarterly
basis.
Asset Quality and Credit Loss
Provisioning
During the three months ended September 30, 2024, the Company
recorded a provision for credit losses of $0.2 million, as compared
to $0.4 million during the trailing quarter, and $4.2 million
during the third quarter of 2023.
Three months ended
Nine months ended
(dollars in thousands)
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Addition to allowance for credit
losses
320
335
3,120
4,670
16,415
Addition to (reversal of) reserve for
unfunded loan commitments
(100
)
70
1,035
260
1,585
Total provision for credit losses
220
405
4,155
4,930
18,000
The provision for credit losses on loans of $0.3 million during
the recent quarter was the result of net charge-offs approximating
$0.1 million and decreases in reserves for qualitative factors due
to improved concentration levels and overall lower loan balances,
offset by a $3.7 million increase in specific reserves for
individually evaluated credits within the commercial and industrial
portfolio.
Three Months Ended September
30,
Nine months ended September
30,
(dollars in thousands)
2024
2023
2024
2023
Balance, beginning of period
$
123,517
$
117,329
$
121,522
$
105,680
Provision for credit losses
320
3,120
4,670
16,415
Loans charged-off
(444
)
(5,357
)
(3,329
)
(7,391
)
Recoveries of previously charged-off
loans
367
720
897
1,108
Balance, end of period
$
123,760
$
115,812
$
123,760
$
115,812
The allowance for credit losses (ACL) was $123.8 million or
1.85% of total loans as of September 30, 2024. 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.
Core inflation is slowing but prices remain elevated relative to
wage increases, as reflected by higher living costs such as
housing, energy and general services. Actions by the Federal
Reserve to cut rates during 2024 and beyond may help improve this
outlook overall, but the uncertainty associated with the extent and
timing of these potential reductions has inhibited a material
change to forecasted reserve levels. Furthermore, geopolitical
risks remain elevated and appear to be getting worse, which may
lead to further negative effects on domestic economic outcomes. As
a result, management continues to believe that certain credit
weaknesses are 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 increased by $7.5 million during
the quarter ended September 30, 2024, to $37.9 million, as compared
to $30.4 million at June 30, 2024. The majority of loans identified
as past due are well-secured by collateral, and approximately $16.3
million is less than 90 days delinquent. Non-performing loans were
$41.6 million at September 30, 2024, an increase of $8.9 million
from $32.8 million as of June 30, 2024, and an increase of $11.8
million from $29.8 million as of September 30, 2023. Management
continues to proactively work with these borrowers to identify
actionable and appropriate resolution strategies which are
customary for the industries. Of the $41.6 million loans designated
as non-performing as of September 30, 2024, approximately $10.0
million are current or less than 30 days past due with respect to
payments required under their existing loan agreements.
September 30,
% of Loans Outstanding
June 30,
% of Loans Outstanding
September 30,
% of Loans Outstanding
(dollars in thousands)
2024
2024
2023
Risk Rating:
Pass
$
6,461,451
96.7
%
$
6,536,223
96.9
%
$
6,532,424
97.4
%
Special Mention
104,759
1.6
%
101,324
1.5
%
94,614
1.4
%
Substandard
117,681
1.8
%
104,979
1.6
%
81,628
1.2
%
Total
$
6,683,891
$
6,742,526
$
6,708,666
Classified loans to total loans
1.76
%
1.56
%
1.22
%
Loans past due 30+ days to total loans
0.57
%
0.45
%
0.12
%
The ratio of classified loans to total loans of 1.76% as of
September 30, 2024, increased 20 basis points from June 30, 2024,
and increased 55 basis points from the comparative quarter ended
2023. The change in classified loans outstanding as compared to the
trailing quarter totaled $16.1 million. Loans with the risk grade
classification substandard increased by $12.7 million over the
trailing quarter and relate primarily to the commercial and
industrial portfolio. 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. The Company's combined
criticized loan balances totaled $222.4 million as of September 30,
2024, an increase of $46.2 million from September 30, 2023.
Outstanding balances on construction loans, which have
historically been associated with elevated levels of risk,
experienced balance reductions of $7.3 million during the current
quarter and $44.9 million since September 30, 2023. These
reductions were primarily associated with balances that were
converted to term loans upon the completion of construction and
achievement of stabilized occupancy, and were partially offset by
new draws or originations.
Management continues to proactively assess the repayment
capacity of borrowers that will 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
resulted in an insignificant need to provide concessions to
borrowers.
As of September 30, 2024, other real estate owned consisted of
10 properties with a carrying value of approximately $2.8 million,
compared to 10 properties with a carrying value of approximately
$2.5 million as of June 30, 2024. Non-performing assets of $44.4
million at September 30, 2024, represented 0.45% of total assets, a
change from the $35.3 million or 0.36% and $32.7 million or 0.33%
as of June 30, 2024 and September 30, 2023, respectively.
Allocation of Credit Loss Reserves by Loan Type
As of September 30, 2024
As of June 30, 2024
As of September 30, 2023
(dollars in thousands)
Amount
% of Loans Outstanding
Amount
% of Loans Outstanding
Amount
% of Loans Outstanding
Commercial real estate:
CRE - Non-Owner Occupied
$
36,206
1.61
%
$
37,155
1.66
%
$
33,723
1.55
%
CRE - Owner Occupied
15,382
1.62
%
15,873
1.67
%
14,503
1.51
%
Multifamily
15,735
1.54
%
15,973
1.60
%
14,239
1.48
%
Farmland
4,016
1.50
%
4,031
1.52
%
4,210
1.51
%
Total commercial real estate loans
71,339
1.59
%
73,032
1.64
%
66,675
1.53
%
Consumer:
SFR 1-4 1st Liens
14,366
1.66
%
14,604
1.65
%
13,535
1.56
%
SFR HELOCs and Junior Liens
10,185
2.87
%
10,087
2.91
%
10,163
2.88
%
Other
2,953
4.70
%
2,983
4.30
%
2,920
4.44
%
Total consumer loans
27,504
2.14
%
27,674
2.13
%
26,618
2.07
%
Commercial and Industrial
14,453
2.98
%
12,128
2.21
%
12,290
2.05
%
Construction
7,119
2.58
%
7,466
2.63
%
8,097
2.52
%
Agricultural Production
3,312
2.30
%
3,180
2.27
%
2,125
1.72
%
Leases
33
0.44
%
37
0.44
%
7
0.09
%
Allowance for credit losses
123,760
1.85
%
123,517
1.83
%
115,812
1.73
%
Reserve for unfunded loan commitments
6,110
6,210
5,900
Total allowance for credit losses
$
129,870
1.92
%
$
129,727
1.92
%
$
121,712
1.81
%
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 September 30, 2024, the unamortized discount
associated with acquired loans totaled $21.4 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)
September 30, 2024
June 30, 2024
Change
% Change
ATM and interchange fees
$
6,472
$
6,372
$
100
1.6
%
Service charges on deposit accounts
4,979
4,847
132
2.7
%
Other service fees
1,224
1,286
(62
)
(4.8
)%
Mortgage banking service fees
439
438
1
0.2
%
Change in value of mortgage servicing
rights
(332
)
(147
)
(185
)
125.9
%
Total service charges and fees
12,782
12,796
(14
)
(0.1
)%
Increase in cash value of life
insurance
786
831
(45
)
(5.4
)%
Asset management and commission income
1,502
1,359
143
10.5
%
Gain on sale of loans
549
388
161
41.5
%
Lease brokerage income
62
154
(92
)
(59.7
)%
Sale of customer checks
303
301
2
0.7
%
(Loss) gain on sale or exchange of
investment securities
2
(45
)
47
(104.4
)%
(Loss) gain on marketable equity
securities
356
(121
)
477
(394.2
)%
Other income
153
203
(50
)
(24.6
)%
Total other non-interest income
3,713
3,070
643
20.9
%
Total non-interest income
$
16,495
$
15,866
$
629
4.0
%
Total non-interest income increased $0.6 million or 4.0% to
$16.5 million during the three months ended September 30, 2024,
compared to $15.9 million during the quarter ended June 30, 2024.
Net gains on the change in value of equity securities totaled $0.4
million during the quarter and included $0.3 million in benefit
from the valuation change in Visa equity securities, which were
also disposed of during the quarter. The remaining various
components of non-interest income are largely consistent period
over period.
Three months ended September
30,
(dollars in thousands)
2024
2023
Change
% Change
ATM and interchange fees
$
6,472
$
6,728
$
(256
)
(3.8
)%
Service charges on deposit accounts
4,979
4,851
128
2.6
%
Other service fees
1,224
1,142
82
7.2
%
Mortgage banking service fees
439
445
(6
)
(1.3
)%
Change in value of mortgage servicing
rights
(332
)
(91
)
(241
)
264.8
%
Total service charges and fees
12,782
13,075
(293
)
(2.2
)%
Increase in cash value of life
insurance
786
684
102
14.9
%
Asset management and commission income
1,502
1,141
361
31.6
%
Gain on sale of loans
549
382
167
43.7
%
Lease brokerage income
62
160
(98
)
(61.3
)%
Sale of customer checks
303
396
(93
)
(23.5
)%
(Loss) gain on sale or exchange of
investment securities
2
—
2
—
%
(Loss) gain on marketable equity
securities
356
(81
)
437
(539.5
)%
Other income
153
227
(74
)
(32.6
)%
Total other non-interest income
3,713
2,909
804
27.6
%
Total non-interest income
$
16,495
$
15,984
$
511
3.2
%
Non-interest income increased $0.5 million or 3.2% to $16.5
million during the three months ended September 30, 2024, compared
to $16.0 million during the comparative quarter ended September 30,
2023. Elevated activity and volumes of assets under management
drove an increase in asset management and commission income, in
addition to the benefit mentioned above related to Visa stock.
These increases were partially offset by a decline in interchange
fees earned related to decreased customer activity in the third
quarter of 2024 as compared to the equivalent quarter in 2023.
Nine months ended September
30,
(dollars in thousands)
2024
2023
Change
% Change
ATM and interchange fees
$
19,013
$
19,928
$
(915
)
(4.6
)%
Service charges on deposit accounts
14,489
12,863
1,626
12.6
%
Other service fees
3,876
3,300
576
17.5
%
Mortgage banking service fees
1,305
1,364
(59
)
(4.3
)%
Change in value of mortgage servicing
rights
(468
)
(215
)
(253
)
117.7
%
Total service charges and fees
38,215
37,240
975
2.6
%
Increase in cash value of life
insurance
2,420
2,274
146
6.4
%
Asset management and commission income
3,989
3,233
756
23.4
%
Gain on sale of loans
1,198
883
315
35.7
%
Lease brokerage income
377
332
45
13.6
%
Sale of customer checks
916
1,091
(175
)
(16.0
)%
(Loss) gain on sale or exchange of
investment securities
(43
)
(164
)
121
(73.8
)%
(Loss) gain on marketable equity
securities
207
(81
)
288
(355.6
)%
Other income
853
552
301
54.5
%
Total other non-interest income
9,917
8,120
1,797
22.1
%
Total non-interest income
$
48,132
$
45,360
$
2,772
6.1
%
Non-interest income increased $2.8 million or 6.1% to $48.1
million during the nine months ended September 30, 2024, compared
to $45.4 million during the comparative nine months ended September
30, 2023. As noted above, interchange fees as driven by customer
activities was elevated in the 2023 period and resulted in a
decrease of $0.9 million as compared to the nine months ended
September 30, 2024. Meanwhile, service charges on deposit accounts
increased by $1.6 million or 12.6% as compared to the equivalent
period in 2023 following $0.9 million in waived or reversed fees as
a courtesy to customers in the 2023 year. As noted above, elevated
activity within asset management and the gain on Visa stock further
contributed to the overall improvement.
Non-interest Expense
Three months ended
(dollars in thousands)
September 30, 2024
June 30, 2024
Change
% Change
Base salaries, net of deferred loan
origination costs
$
24,407
$
23,852
$
555
2.3
%
Incentive compensation
4,361
4,711
(350
)
(7.4
)%
Benefits and other compensation costs
6,782
6,838
(56
)
(0.8
)%
Total salaries and benefits expense
35,550
35,401
149
0.4
%
Occupancy
4,191
4,063
128
3.2
%
Data processing and software
5,258
5,094
164
3.2
%
Equipment
1,374
1,330
44
3.3
%
Intangible amortization
1,030
1,030
—
—
%
Advertising
1,152
819
333
40.7
%
ATM and POS network charges
1,712
1,987
(275
)
(13.8
)%
Professional fees
1,893
1,814
79
4.4
%
Telecommunications
507
558
(51
)
(9.1
)%
Regulatory assessments and insurance
1,256
1,144
112
9.8
%
Postage
335
340
(5
)
(1.5
)%
Operational loss
603
244
359
147.1
%
Courier service
542
559
(17
)
(3.0
)%
(Gain) loss on sale or acquisition of
foreclosed assets
26
—
26
—
%
(Gain) loss on disposal of fixed
assets
6
1
5
500.0
%
Other miscellaneous expense
4,052
3,955
97
2.5
%
Total other non-interest expense
23,937
22,938
999
4.4
%
Total non-interest expense
$
59,487
$
58,339
$
1,148
2.0
%
Average full-time equivalent staff
1,161
1,160
1
0.1
%
Total non-interest expense for the quarter ended September 30,
2024, increased $1.1 million or 2.0% to $59.5 million as compared
to $58.3 million during the trailing quarter ended June 30, 2024.
Total salaries and benefits expense increased by $0.1 million or
0.4%, reflecting the increase of $0.6 million in salaries,
partially offset by a decline of $0.4 million in incentive
compensation accruals related to production volumes of both loans
and deposits. Advertising expense increased by $0.3 million as
compared to the trailing quarter following increased spend on
promotional activities, and operational losses increased by $0.4
million during the same period from increases in volume of fraud
and robbery losses.
Three months ended September
30,
(dollars in thousands)
2024
2023
Change
% Change
Base salaries, net of deferred loan
origination costs
$
24,407
$
23,616
$
791
3.3
%
Incentive compensation
4,361
4,391
(30
)
(0.7
)%
Benefits and other compensation costs
6,782
6,456
326
5.0
%
Total salaries and benefits expense
35,550
34,463
1,087
3.2
%
Occupancy
4,191
3,948
243
6.2
%
Data processing and software
5,258
5,246
12
0.2
%
Equipment
1,374
1,503
(129
)
(8.6
)%
Intangible amortization
1,030
1,590
(560
)
(35.2
)%
Advertising
1,152
881
271
30.8
%
ATM and POS network charges
1,712
1,606
106
6.6
%
Professional fees
1,893
1,752
141
8.0
%
Telecommunications
507
567
(60
)
(10.6
)%
Regulatory assessments and insurance
1,256
1,194
62
5.2
%
Postage
335
306
29
9.5
%
Operational loss
603
474
129
27.2
%
Courier service
542
492
50
10.2
%
(Gain) loss on sale or acquisition of
foreclosed assets
26
(152
)
178
(117.1
)%
(Gain) loss on disposal of fixed
assets
6
4
2
50.0
%
Other miscellaneous expense
4,052
4,004
48
1.2
%
Total other non-interest expense
23,937
23,415
522
2.2
%
Total non-interest expense
$
59,487
$
57,878
$
1,609
2.8
%
Average full-time equivalent staff
1,161
1,215
(54
)
(4.4
)%
Total non-interest expense increased $1.6 million or 2.8% to
$59.5 million during the three months ended September 30, 2024, as
compared to $57.9 million for the quarter ended September 30, 2023.
Total salaries and benefits expense increased by $1.1 million or
3.2%, reflecting the increase of $0.8 million in salaries and $0.3
million in benefits and other costs.
Nine months ended September
30,
(dollars in thousands)
2024
2023
Change
% Change
Base salaries, net of deferred loan
origination costs
$
72,279
$
70,675
$
1,604
2.3
%
Incentive compensation
12,329
11,663
666
5.7
%
Benefits and other compensation costs
20,647
19,402
1,245
6.4
%
Total salaries and benefits expense
105,255
101,740
3,515
3.5
%
Occupancy
12,205
12,099
106
0.9
%
Data processing and software
15,459
13,916
1,543
11.1
%
Equipment
4,060
4,322
(262
)
(6.1
)%
Intangible amortization
3,090
4,902
(1,812
)
(37.0
)%
Advertising
2,733
2,656
77
2.9
%
ATM and POS network charges
5,360
5,217
143
2.7
%
Professional fees
5,047
5,326
(279
)
(5.2
)%
Telecommunications
1,576
1,971
(395
)
(20.0
)%
Regulatory assessments and insurance
3,651
3,979
(328
)
(8.2
)%
Postage
983
916
67
7.3
%
Operational loss
1,199
1,999
(800
)
(40.0
)%
Courier service
1,581
1,314
267
20.3
%
(Gain) loss on sale or acquisition of
foreclosed assets
(12
)
(152
)
140
(92.1
)%
(Gain) loss on disposal of fixed
assets
12
22
(10
)
(45.5
)%
Other miscellaneous expense
12,131
12,688
(557
)
(4.4
)%
Total other non-interest expense
69,075
71,175
(2,100
)
(3.0
)%
Total non-interest expense
$
174,330
$
172,915
$
1,415
0.8
%
Average full-time equivalent staff
1,170
1,215
(45
)
(3.7
)%
Total non-interest expense increased $1.4 million or 0.8% to
$174.3 million during the nine months ended September 30, 2024, as
compared to $172.9 million for the nine months ended September 30,
2023. This was largely attributed to an increase of $3.5 million or
3.5% in total salaries and benefits expense to $105.3 million, 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. Additionally, data processing and software expenses
increased by $1.5 million or 11.1% related to ongoing investments
in the Company's data management and security infrastructure. These
increases were partially offset by declines in non-cash intangible
amortization expense of $1.8 million or 37.0% and reductions in
operational losses of $0.8 million or 40.0% due to non-recurring
ATM burglary expenses totaling $0.7 million in the comparative
period.
Provision for Income
Taxes
The Company’s effective tax rate was 26.3% for the quarter ended
September 30, 2024, as compared to 25.8% for the quarter ended June
30, 2024, and 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, including
the pending litigation, 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
Company’s potential judgments, orders, settlements, penalties,
fines and reputational damage resulting from pending or future
litigation and regulatory investigations, proceedings and
enforcement actions; 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
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
Revenue and Expense Data
Interest income
$
117,347
$
117,032
$
115,417
$
115,909
$
112,380
Interest expense
34,736
35,035
32,681
29,292
24,257
Net interest income
82,611
81,997
82,736
86,617
88,123
Provision for credit losses
220
405
4,305
5,990
4,155
Noninterest income:
Service charges and fees
12,782
12,796
12,637
12,848
13,075
(Loss) gain on sale or exchange of
investment securities
2
(45
)
—
(120
)
—
Other income
3,711
3,115
3,134
3,312
2,909
Total noninterest income
16,495
15,866
15,771
16,040
15,984
Noninterest expense:
Salaries and benefits
35,550
35,401
34,304
34,055
34,463
Occupancy and equipment
5,565
5,393
5,307
5,358
5,451
Data processing and network
6,970
7,081
6,768
6,880
6,852
Other noninterest expense
11,402
10,464
10,125
13,974
11,112
Total noninterest expense
59,487
58,339
56,504
60,267
57,878
Total income before taxes
39,399
39,119
37,698
36,400
42,074
Provision for income taxes
10,348
10,085
9,949
10,325
11,484
Net income
$
29,051
$
29,034
$
27,749
$
26,075
$
30,590
Share Data
Basic earnings per share
$
0.88
$
0.88
$
0.83
$
0.78
$
0.92
Diluted earnings per share
$
0.88
$
0.87
$
0.83
$
0.78
$
0.92
Dividends per share
$
0.33
$
0.33
$
0.33
$
0.30
$
0.30
Book value per common share
$
37.55
$
35.62
$
35.06
$
34.86
$
32.18
Tangible book value per common share
(1)
$
28.09
$
26.13
$
25.60
$
25.39
$
22.67
Shares outstanding
33,000,508
32,989,327
33,168,770
33,268,102
33,263,324
Weighted average shares
32,992,855
33,121,271
33,245,377
33,266,959
33,262,798
Weighted average diluted shares
33,136,858
33,243,955
33,370,118
33,351,737
33,319,291
Credit Quality
Allowance for credit losses to gross
loans
1.85
%
1.83
%
1.83
%
1.79
%
1.73
%
Loans past due 30 days or more
$
37,888
$
30,372
$
16,474
$
19,415
$
8,072
Total nonperforming loans
$
41,636
$
32,774
$
34,242
$
31,891
$
29,799
Total nonperforming assets
$
44,400
$
35,267
$
36,735
$
34,595
$
32,651
Loans charged-off
$
444
$
1,610
$
1,275
$
749
$
5,357
Loans recovered
$
367
$
398
$
132
$
419
$
720
Selected Financial Ratios
Return on average total assets
1.20
%
1.19
%
1.13
%
1.05
%
1.23
%
Return on average equity
9.52
%
9.99
%
9.50
%
9.43
%
10.91
%
Average yield on loans
5.83
%
5.82
%
5.72
%
5.64
%
5.52
%
Average yield on interest-earning
assets
5.26
%
5.24
%
5.13
%
5.09
%
4.94
%
Average rate on interest-bearing
deposits
2.23
%
2.14
%
1.83
%
1.62
%
1.36
%
Average cost of total deposits
1.52
%
1.45
%
1.21
%
1.05
%
0.86
%
Average cost of total deposits and other
borrowings
1.59
%
1.59
%
1.47
%
1.28
%
1.05
%
Average rate on borrowings &
subordinated debt
5.83
%
5.65
%
5.35
%
5.26
%
4.96
%
Average rate on interest-bearing
liabilities
2.40
%
2.39
%
2.24
%
2.01
%
1.71
%
Net interest margin (fully tax-equivalent)
(1)
3.71
%
3.68
%
3.68
%
3.81
%
3.88
%
Loans to deposits
83.16
%
83.76
%
85.14
%
86.73
%
83.76
%
Efficiency ratio
60.02
%
59.61
%
57.36
%
58.71
%
55.59
%
Supplemental Loan Interest Income
Data
Discount accretion on acquired loans
$
1,018
$
850
$
1,332
$
1,459
$
1,324
All other loan interest income (1)
$
97,067
$
97,379
$
95,153
$
94,382
$
90,383
Total loan interest income (1)
$
98,085
$
98,229
$
96,485
$
95,841
$
91,707
(1)
Non-GAAP measure
TriCo Bancshares—Condensed Consolidated
Financial Data (unaudited)
(dollars in thousands, except per share
data)
Balance Sheet Data
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
Cash and due from banks
$
320,114
$
206,558
$
82,836
$
98,701
$
111,099
Securities, available for sale, net
1,981,960
1,946,167
2,076,494
2,155,138
2,176,854
Securities, held to maturity, net
117,259
122,673
127,811
133,494
139,058
Restricted equity securities
17,250
17,250
17,250
17,250
17,250
Loans held for sale
1,995
474
1,346
458
644
Loans:
Commercial real estate
4,487,524
4,461,111
4,443,768
4,394,802
4,367,445
Consumer
1,283,963
1,300,727
1,303,757
1,313,268
1,288,810
Commercial and industrial
484,763
548,625
549,780
586,455
599,757
Construction
276,095
283,374
348,981
347,198
320,963
Agriculture production
144,123
140,239
145,159
144,497
123,472
Leases
7,423
8,450
9,250
8,250
8,219
Total loans, gross
6,683,891
6,742,526
6,800,695
6,794,470
6,708,666
Allowance for credit losses
(123,760
)
(123,517
)
(124,394
)
(121,522
)
(115,812
)
Total loans, net
6,560,131
6,619,009
6,676,301
6,672,948
6,592,854
Premises and equipment
70,423
70,621
71,001
71,347
71,760
Cash value of life insurance
139,312
138,525
137,695
136,892
136,016
Accrued interest receivable
33,061
35,527
35,783
36,768
34,595
Goodwill
304,442
304,442
304,442
304,442
304,442
Other intangible assets
7,462
8,492
9,522
10,552
11,768
Operating leases, right-of-use
24,716
25,113
26,240
26,133
27,363
Other assets
245,765
246,548
247,046
245,966
273,303
Total assets
$
9,823,890
$
9,741,399
$
9,813,767
$
9,910,089
$
9,897,006
Deposits:
Noninterest-bearing demand deposits
$
2,547,736
$
2,557,063
$
2,600,448
$
2,722,689
$
2,857,512
Interest-bearing demand deposits
1,708,726
1,791,466
1,742,875
1,731,814
1,746,882
Savings deposits
2,690,045
2,667,006
2,672,537
2,682,068
2,816,816
Time certificates
1,090,584
1,034,695
971,798
697,467
588,433
Total deposits
8,037,091
8,050,230
7,987,658
7,834,038
8,009,643
Accrued interest payable
11,664
12,018
10,224
8,445
6,688
Operating lease liability
26,668
27,122
28,299
28,261
29,527
Other liabilities
141,521
128,063
131,006
145,982
141,692
Other borrowings
266,767
247,773
392,409
632,582
537,975
Junior subordinated debt
101,164
101,143
101,120
101,099
101,080
Total liabilities
8,584,875
8,566,349
8,650,716
8,750,407
8,826,605
Common stock
693,176
691,878
696,464
697,349
696,369
Retained earnings
662,816
644,687
630,954
615,502
599,448
Accumulated other comprehensive loss, net
of tax
(116,977
)
(161,515
)
(164,367
)
(153,169
)
(225,416
)
Total shareholders’ equity
$
1,239,015
$
1,175,050
$
1,163,051
$
1,159,682
$
1,070,401
Quarterly Average Balance Data
Average loans
$
6,690,326
$
6,792,303
$
6,785,840
$
6,746,153
$
6,597,400
Average interest-earning assets
$
8,892,223
$
9,001,674
$
9,066,537
$
9,064,483
$
9,053,389
Average total assets
$
9,666,979
$
9,782,228
$
9,855,797
$
9,879,355
$
9,874,240
Average deposits
$
8,020,936
$
8,024,441
$
7,821,044
$
7,990,993
$
8,043,101
Average borrowings and subordinated
debt
$
276,418
$
426,732
$
685,802
$
617,046
$
550,344
Average total equity
$
1,214,510
$
1,169,324
$
1,174,592
$
1,097,431
$
1,112,404
Capital Ratio Data
Total risk-based capital ratio
15.6
%
15.2
%
15.0
%
14.7
%
14.5
%
Tier 1 capital ratio
13.8
%
13.4
%
13.2
%
12.9
%
12.7
%
Tier 1 common equity ratio
13.1
%
12.7
%
12.5
%
12.2
%
12.0
%
Tier 1 leverage ratio
11.6
%
11.2
%
11.0
%
10.7
%
10.6
%
Tangible capital ratio (1)
9.7
%
9.1
%
8.9
%
8.8
%
7.9
%
(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
Nine months ended
(dollars in thousands)
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Net interest margin
Acquired loans discount accretion,
net:
Amount (included in interest income)
$
1,018
$
850
$
1,324
$
3,200
$
4,192
Effect on average loan yield
0.06
%
0.05
%
0.08
%
0.06
%
0.09
%
Effect on net interest margin (FTE)
0.05
%
0.04
%
0.06
%
0.05
%
0.06
%
Net interest margin (FTE)
3.71
%
3.68
%
3.88
%
3.69
%
4.01
%
Net interest margin less effect of
acquired loan discount accretion (Non-GAAP)
3.66
%
3.64
%
3.82
%
3.64
%
3.95
%
Three months ended
Nine months ended
(dollars in thousands)
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Pre-tax pre-provision return on average
assets or equity
Net income (GAAP)
$
29,051
$
29,034
$
30,590
$
85,834
$
91,315
Exclude provision for income taxes
10,348
10,085
11,484
30,382
33,190
Exclude provision for credit losses
220
405
4,155
4,930
18,000
Net income before income tax and provision
expense (Non-GAAP)
$
39,619
$
39,524
$
46,229
$
121,146
$
142,505
Average assets (GAAP)
$
9,666,979
$
9,782,228
$
9,874,240
$
9,767,965
$
9,867,099
Average equity (GAAP)
$
1,214,510
$
1,169,324
$
1,112,404
$
1,186,245
$
1,104,122
Return on average assets (GAAP)
(annualized)
1.20
%
1.19
%
1.23
%
1.17
%
1.24
%
Pre-tax pre-provision return on average
assets (Non-GAAP) (annualized)
1.63
%
1.63
%
1.86
%
1.66
%
1.93
%
Return on average equity (GAAP)
(annualized)
9.52
%
9.99
%
10.91
%
9.67
%
11.06
%
Pre-tax pre-provision return on average
equity (Non-GAAP) (annualized)
12.98
%
13.59
%
16.49
%
13.64
%
17.26
%
Three months ended
Nine months ended
(dollars in thousands)
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Return on tangible common
equity
Average total shareholders' equity
$
1,214,510
$
1,169,324
$
1,112,404
$
1,186,245
$
1,104,122
Exclude average goodwill
304,442
304,442
304,442
304,442
304,442
Exclude average other intangibles
8,093
9,007
12,563
9,098
14,219
Average tangible common equity
(Non-GAAP)
$
901,975
$
855,875
$
795,399
$
872,705
$
785,461
Net income (GAAP)
$
29,051
$
29,034
$
30,590
$
85,834
$
91,315
Exclude amortization of intangible assets,
net of tax effect
725
725
1,120
2,175
3,453
Tangible net income available to common
shareholders (Non-GAAP)
$
29,776
$
29,759
$
31,710
$
88,009
$
94,768
Return on average equity (GAAP)
(annualized)
9.52
%
9.99
%
10.91
%
9.67
%
11.06
%
Return on average tangible common equity
(Non-GAAP)
13.13
%
13.98
%
15.82
%
13.47
%
16.13
%
Three months ended
(dollars in thousands)
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
Tangible shareholders' equity to
tangible assets
Shareholders' equity (GAAP)
$
1,239,015
$
1,175,050
$
1,163,051
$
1,159,682
$
1,070,401
Exclude goodwill and other intangible
assets, net
311,904
312,934
313,964
314,994
316,210
Tangible shareholders' equity
(Non-GAAP)
$
927,111
$
862,116
$
849,087
$
844,688
$
754,191
Total assets (GAAP)
$
9,823,890
$
9,741,399
$
9,813,767
$
9,910,089
$
9,897,006
Exclude goodwill and other intangible
assets, net
311,904
312,934
313,964
314,994
316,210
Total tangible assets (Non-GAAP)
$
9,511,986
$
9,428,465
$
9,499,803
$
9,595,095
$
9,580,796
Shareholders' equity to total assets
(GAAP)
12.61
%
12.06
%
11.85
%
11.70
%
10.82
%
Tangible shareholders' equity to tangible
assets (Non-GAAP)
9.75
%
9.14
%
8.94
%
8.80
%
7.87
%
Three months ended
(dollars in thousands)
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
Tangible common shareholders' equity
per share
Tangible shareholders' equity
(Non-GAAP)
$
927,111
$
862,116
$
849,087
$
844,688
$
754,191
Common shares outstanding at end of
period
33,000,508
32,989,327
33,168,770
33,268,102
33,263,324
Common shareholders' equity (book value)
per share (GAAP)
$
37.55
$
35.62
$
35.06
$
34.86
$
32.18
Tangible common shareholders' equity
(tangible book value) per share (Non-GAAP)
$
28.09
$
26.13
$
25.60
$
25.39
$
22.67
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241024306434/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
