4Q24 Financial
Highlights
- Net income was $29.0 million or $0.88 per
diluted share as compared to $29.1 million or $0.88 per
diluted share in the trailing quarter
- Net interest margin (FTE) was 3.76% in the recent
quarter, an increase of 5 basis points over 3.71% in the
trailing quarter; net interest income (FTE) was $84.4 million, and
increase of $1.5 million over the trailing quarter
- Loan balances increased $84.6 million or 5.1% (annualized)
from the trailing quarter and decreased $25.9 million or 0.4% from
the same quarter of the prior year
- Deposit balances increased $50.5 million or 2.5%
(annualized) from the trailing quarter and increased $253.5 million
or 3.2% from the same quarter of the prior year
- Average yield on earning assets was 5.22%, a decrease of 4
basis points over the 5.26% in the trailing quarter; average yield
on loans was 5.78%, a decrease of 5 basis points over the 5.83% in
the trailing quarter
- Non-interest bearing deposits averaged 31.8% of total
deposits during the quarter
- The average cost of total deposits was 1.46%, a decrease of
6 basis points as compared to 1.52% in the trailing quarter, and an
increase of 41 basis points from 1.05% in the same quarter
of the prior year
TriCo Bancshares (NASDAQ: TCBK):
Executive Commentary:
“With the close of 2024 representing nearly 50 years of strong
and steady value delivery to our stakeholders, we remain focused on
our path forward. The next several years may bring a number of
changes to the financial services industry and to Tri Counties
Bank; however, we believe that these changes will likely create
significant opportunity for us to further differentiate and elevate
our performance," said Rick Smith, President and CEO.
Peter Wiese, EVP and CFO added, “Both net interest margin and
net interest income expanded for the second consecutive quarter
despite three Federal Funds rate cuts totaling 100 basis points
since mid-September. These benefits were realized primarily through
a reduction in funding costs and the deployment of balance sheet
cash into higher yielding earning assets.”
Selected Financial
Highlights
- For the quarter ended December 31, 2024, the Company’s return
on average assets was 1.19%, while the return on average equity was
9.30%; for the trailing quarter ended September 30, 2024, the
Company’s return on average assets was 1.20%, while the return on
average equity was 9.52%
- Diluted earnings per share were $0.88 for the fourth quarter of
2024, compared to $0.88 for the trailing quarter and $0.78 during
the fourth quarter of 2023
- The loan to deposit ratio increased to 83.7% as of December 31,
2024, as compared to 83.2% for the trailing quarter end, as a
result of loan growth outpacing deposit growth during the
quarter
- The efficiency ratio was 59.56% for the quarter ended December
31, 2024, as compared to 60.02% for the trailing quarter
- The provision for credit losses was approximately $1.7 million
during the quarter ended December 31, 2024, as compared to $0.2
million during the trailing quarter end, and was necessitated by
the $84.6 million in loan growth during the quarter
- The allowance for credit losses (ACL) to total loans was 1.85%
as of December 31, 2024, compared to 1.85% as of the trailing
quarter end, and 1.79% as of December 31, 2023. Non-performing
assets to total assets were 0.48% on December 31, 2024, as compared
to 0.45% as of September 30, 2024, and 0.35% at December 31, 2023.
At December 31, 2024, the ACL represented 284% 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-K for the period ended December 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
December 31, 2024
September 30, 2024
(dollars and shares in thousands, except
per share data)
$ Change
% Change
Net interest income
$
84,090
$
82,611
$
1,479
1.8
%
Provision for credit losses
(1,702
)
(220
)
(1,482
)
673.6
%
Noninterest income
16,275
16,495
(220
)
(1.3
)%
Noninterest expense
(59,775
)
(59,487
)
(288
)
0.5
%
Provision for income taxes
(9,854
)
(10,348
)
494
(4.8
)%
Net income
$
29,034
$
29,051
$
(17
)
(0.1
)%
Diluted earnings per share
$
0.88
$
0.88
$
—
—
%
Dividends per share
$
0.33
$
0.33
$
—
—
%
Average common shares
32,994
32,993
1
nm
Average diluted common shares
33,162
33,137
25
0.1
%
Return on average total assets
1.19
%
1.20
%
Return on average equity
9.30
%
9.52
%
Efficiency ratio
59.56
%
60.02
%
Three months ended December
31,
(dollars and shares in thousands, except
per share data)
2024
2023
$ Change
% Change
Net interest income
$
84,090
$
86,617
$
(2,527
)
(2.9
)%
Provision for credit losses
(1,702
)
(5,990
)
4,288
(71.6
)%
Noninterest income
16,275
16,040
235
1.5
%
Noninterest expense
(59,775
)
(60,267
)
492
(0.8
)%
Provision for income taxes
(9,854
)
(10,325
)
471
(4.6
)%
Net income
$
29,034
$
26,075
$
2,959
11.3
%
Diluted earnings per share
$
0.88
$
0.78
$
0.10
12.8
%
Dividends per share
$
0.33
$
0.30
$
0.03
10.0
%
Average common shares
32,994
33,267
(273
)
(0.8
)%
Average diluted common shares
33,162
33,352
(190
)
(0.6
)%
Return on average total assets
1.19
%
1.05
%
Return on average equity
9.30
%
9.43
%
Efficiency ratio
59.56
%
58.71
%
Twelve months ended December
31,
(dollars and shares in thousands)
2024
2023
$ Change
% Change
Net interest income
$
331,434
$
356,677
$
(25,243
)
(7.1
)%
Provision for credit losses
(6,632
)
(23,990
)
17,358
(72.4
)%
Noninterest income
64,407
61,400
3,007
4.9
%
Noninterest expense
(234,105
)
(233,182
)
(923
)
0.4
%
Provision for income taxes
(40,236
)
(43,515
)
3,279
(7.5
)%
Net income
$
114,868
$
117,390
$
(2,522
)
(2.1
)%
Diluted earnings per share
$
3.46
$
3.52
$
(0.06
)
(1.7
)%
Dividends per share
$
1.32
$
1.20
$
0.12
10.0
%
Average common shares
33,088
33,261
(173
)
(0.5
)%
Average diluted common shares
33,230
33,355
(125
)
(0.4
)%
Return on average total assets
1.18
%
1.19
%
Return on average equity
9.57
%
10.65
%
Efficiency ratio
59.14
%
55.77
%
Balance Sheet Data
Total loans outstanding were $6.8 billion as of December 31,
2024, a decrease of $25.9 million or 0.4% over December 31, 2023,
but an increase of $84.6 million or 5.1% annualized as compared to
the trailing quarter ended September 30, 2024. Investments
decreased by $79.9 million and $269.3 million for the three and
twelve month periods ended December 31, 2024, respectively, and
ended the quarter with a balance of $2.04 billion or 21.1% of total
assets. Quarterly average earning assets to quarterly total average
assets was 91.8% on December 31, 2024, compared to 91.6% at
December 31, 2023. The loan-to-deposit ratio was 83.7% on December
31, 2024, as compared to 86.7% at December 31, 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 decreased by $18.1 million during the
quarter ended December 31, 2024, as net income of $29.0 million was
partially offset by a $35.5 million increase 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
declined to $37.03 per share at December 31, 2024, compared to
$37.55 at September 30, 2024. 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 $27.60 per share
at December 31, 2024, as compared to $28.09 at September 30, 2024.
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
December 31, 2024
September 30, 2024
Annualized
% Change
(dollars in thousands)
$ Change
Total assets
$
9,673,728
$
9,823,890
$
(150,162
)
(6.1
)%
Total loans
6,768,523
6,683,891
84,632
5.1
Total investments
2,036,610
2,116,469
(79,859
)
(15.1
)
Total deposits
8,087,576
8,037,091
50,485
2.5
Total other borrowings
89,610
266,767
(177,157
)
(265.6
)
Loans outstanding increased by $84.6 million or 5.1% on an
annualized basis during the quarter ended December 31, 2024. During
the quarter, loan originations/draws totaled approximately $487.9
million while payoffs/repayments of loans totaled $408.5 million,
which compares to originations/draws and payoffs/repayments during
the trailing quarter ended of $351.1 million and $418.8 million,
respectively. Origination volume was elevated relative to the
comparative period in 2023 due in large part to a dip in benchmark
interest rates leading to increased borrower demand. The activity
within loan payoffs/repayments remains spread amongst numerous
borrowers, regions and loan types.
Investment security balances decreased $79.9 million or 15.1% on
an annualized basis during the quarter as a result of net decreases
in the market value of securities of $53.1 million and net
prepayments and maturities, collectively totaling approximating
$91.0 million, offset partially by purchases totaling $64.8
million. There were no investment securities sold during the
quarter. Investment security purchases were comprised of fixed rate
agency mortgage backed securities and fixed rate agency
collateralized mortgage obligations. 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 increased by $50.5 million or 2.5% annualized
during the period, primarily due to increases in interest-bearing
demand deposits and time certificates, partially offset by
decreases in savings deposits.
Average Trailing Quarter Balance Sheet Change
Quarterly average balances for the period ended
December 31, 2024
September 30, 2024
Annualized
% Change
(dollars in thousands)
$ Change
Total assets
$
9,725,643
$
9,666,979
$
58,664
2.4
%
Total loans
6,720,732
6,690,326
30,406
1.8
Total investments
2,066,437
2,108,359
(41,922
)
(8.0
)
Total deposits
8,118,663
8,020,936
97,727
4.9
Total other borrowings
95,202
175,268
(80,066
)
(182.7
)
Year Over Year Balance Sheet Change
Ending balances
As of December 31,
% Change
(dollars in thousands)
2024
2023
$ Change
Total assets
$
9,673,728
$
9,910,089
$
(236,361
)
(2.4
)%
Total loans
6,768,523
6,794,470
(25,947
)
(0.4
)
Total investments
2,036,610
2,305,882
(269,272
)
(11.7
)
Total deposits
8,087,576
7,834,038
253,538
3.2
Total other borrowings
89,610
632,582
(542,972
)
(85.8
)
Primary Sources of
Liquidity
(dollars in thousands)
December 31, 2024
September 30, 2024
December 31, 2023
Borrowing capacity at correspondent banks
and FRB
$
2,821,678
$
2,757,640
$
2,927,065
Less: borrowings outstanding
(75,000
)
(250,000
)
(500,000
)
Unpledged available-for-sale (AFS)
investment securities
1,279,422
1,312,745
1,702,265
Cash held or in transit with FRB
96,395
274,908
72,049
Total primary liquidity
$
4,122,495
$
4,095,293
$
4,201,379
Estimated uninsured deposit balances
$
2,584,265
$
2,513,313
$
2,406,552
On December 31, 2024, the Company's primary sources of liquidity
represented 51% of total deposits and 160% 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 $104.3 million, including approximately $7.5
million in net unrealized losses.
Net Interest Income and Net Interest
Margin
The Company's yield on total loans increased 14 basis points to
5.78% for the three months ended December 31, 2024, from 5.64% for
the three months ended December 31, 2023. The tax equivalent yield
on the Company's investment security portfolio was 3.38% for the
quarter ended December 31, 2024, a decrease of 9 basis points from
the 3.47% for the three months ended December 31, 2023. The cost of
total interest-bearing deposits and total interest-bearing
liabilities increased by 53 basis points and 26 basis points,
respectively, between the three-month periods ended December 31,
2024 and 2023. In September 2024, the FOMC began reducing short
term rates and through December 2024 there were three rate cuts
totaling 100 basis points. Net interest income and net interest
margin increased in both the third and fourth quarters of 2024.
More specifically, the fully tax-equivalent net interest income and
net interest margin was $82.3 million and 3.68%, respectively for
the quarter ended June 30, 2024, and was $84.4 million and 3.76%,
respectively for the quarter ended December 31, 2024.
The Company continues to manage its cost of deposits through the
use of various pricing and product mix strategies. As of December
31, 2024 and December 31, 2023, deposits priced utilizing these
strategies totaled $1.05 billion and $1.3 billion and carried
weighted average rates of 3.59% and 3.60%, respectively.
Three months ended
December 31, 2024
September 30, 2024
(dollars in thousands)
Change
% Change
Interest income
$
116,842
$
117,347
$
(505
)
(0.4
)%
Interest expense
(32,752
)
(34,736
)
1,984
(5.7
)%
Fully tax-equivalent adjustment (FTE)
(1)
266
269
(3
)
(1.1
)%
Net interest income (FTE)
$
84,356
$
82,880
$
1,476
1.8
%
Net interest margin (FTE)
3.76
%
3.71
%
Acquired loans discount accretion,
net:
Amount (included in interest income)
$
1,129
$
1,018
$
111
10.9
%
Net interest margin less effect of
acquired loan discount accretion(1)
3.71
%
3.66
%
0.05
%
Three months ended December
31,
(dollars in thousands)
2024
2023
Change
% Change
Interest income
$
116,842
$
115,909
$
933
0.8
%
Interest expense
(32,752
)
(29,292
)
(3,460
)
11.8
%
Fully tax-equivalent adjustment (FTE)
(1)
266
360
(94
)
(26.1
)%
Net interest income (FTE)
$
84,356
$
86,977
$
(2,621
)
(3.0
)%
Net interest margin (FTE)
3.76
%
3.81
%
Acquired loans discount accretion,
net:
Amount (included in interest income)
$
1,129
$
1,459
$
(330
)
(22.6
)%
Net interest margin less effect of
acquired loan discount accretion(1)
3.71
%
3.75
%
(0.04
)%
Twelve months ended December
31,
(dollars in thousands)
2024
2023
Change
% Change
Interest income
$
466,638
$
438,354
$
28,284
6.5
%
Interest expense
(135,204
)
(81,677
)
(53,527
)
65.5
%
Fully tax-equivalent adjustment (FTE)
(1)
1,085
1,536
(451
)
(29.4
)%
Net interest income (FTE)
$
332,519
$
358,213
$
(25,694
)
(7.2
)%
Net interest margin (FTE)
3.71
%
3.96
%
Acquired loans discount accretion,
net:
Amount (included in interest income)
$
4,329
$
5,651
$
(1,322
)
(23.4
)%
Net interest margin less effect of
acquired loan discount accretion(1)
3.66
%
3.90
%
(0.24
)%
(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)
December 31, 2024
September 30, 2024
December 31, 2023
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Assets
Loans
$
6,720,732
$
97,692
5.78
%
$
6,690,326
$
98,085
5.83
%
$
6,746,153
$
95,841
5.64
%
Investments-taxable
1,932,839
16,413
3.38
%
1,972,859
17,188
3.47
%
2,121,652
18,522
3.46
%
Investments-nontaxable (1)
133,598
1,152
3.43
%
135,500
1,166
3.42
%
173,583
1,561
3.57
%
Total investments
2,066,437
17,565
3.38
%
2,108,359
18,354
3.46
%
2,295,235
20,083
3.47
%
Cash at Fed Reserve and other banks
144,908
1,851
5.08
%
93,538
1,177
5.01
%
23,095
345
5.93
%
Total earning assets
8,932,077
117,108
5.22
%
8,892,223
117,616
5.26
%
9,047,233
116,269
5.09
%
Other assets, net
793,566
774,756
814,872
Total assets
$
9,725,643
$
9,666,979
$
9,879,355
Liabilities and shareholders’ equity
Interest-bearing demand deposits
$
1,723,059
$
5,704
1.32
%
$
1,736,442
$
6,132
1.40
%
$
1,755,900
$
4,714
1.07
%
Savings deposits
2,699,084
12,666
1.87
%
2,686,303
13,202
1.96
%
2,765,679
10,828
1.55
%
Time deposits
1,111,024
11,518
4.12
%
1,055,612
11,354
4.28
%
652,709
5,564
3.38
%
Total interest-bearing deposits
5,533,167
29,888
2.15
%
5,478,357
30,688
2.23
%
5,174,288
21,106
1.62
%
Other borrowings
95,202
1,066
4.45
%
175,268
2,144
4.87
%
515,959
6,394
4.92
%
Junior subordinated debt
101,173
1,798
7.07
%
101,150
1,904
7.49
%
101,087
1,792
7.03
%
Total interest-bearing liabilities
5,729,542
32,752
2.27
%
5,754,775
34,736
2.40
%
5,791,334
29,292
2.01
%
Noninterest-bearing deposits
2,585,496
2,542,579
2,816,705
Other liabilities
169,083
155,115
173,885
Shareholders’ equity
1,241,522
1,214,510
1,097,431
Total liabilities and shareholders’
equity
$
9,725,643
$
9,666,979
$
9,879,355
Net interest rate spread (1) (2)
2.95
%
2.86
%
3.09
%
Net interest income and margin (1) (3)
$
84,356
3.76
%
$
82,880
3.71
%
$
86,977
3.81
%
(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 December
31, 2024, increased $1.5 million or 1.8% to $84.4 million compared
to $82.9 million during the three months ended September 30, 2024.
Net interest margin totaled 3.76% for the three months ended
December 31, 2024, an increase of 5 basis points from the trailing
quarter. The increase in net interest income is primarily
attributed to a $1.1 million decline in interest expense on other
borrowings due to a $80.1 million decrease in the average balance
of borrowings and a $0.8 million decrease in interest expense on
deposits from an improved product rate mix, during the three months
ended December 31, 2024 as compared to the trailing quarter. This
decline in interest expense was partially offset by a decrease in
total interest income from earning assets totaling $0.5 million,
primarily related to a decline in yields on loans and declines in
the average balance of investments totaling $42.0 million, as
compared to the trailing quarter.
As compared to the same quarter in the prior year, average loan
yields increased 14 basis points from 5.64% during the three months
ended December 31, 2023, to 5.78% during the three months ended
December 31, 2024. The accretion of discounts from acquired loans
added 6 basis points and 9 basis points to loan yields during the
quarters ended December 31, 2024 and December 31, 2023,
respectively. The cost of interest-bearing deposits increased by 53
basis points between the quarter ended December 31, 2024, and the
same quarter of the prior year. In addition, the average balance of
noninterest-bearing deposits decreased by $231.2 million from the
three-month average for the period ended December 31, 2023 amidst a
continued migration of customer funds to interest-bearing
products.
For the quarter ended December 31, 2024, the ratio of average
total noninterest-bearing deposits to total average deposits was
31.8%, as compared to 31.7% and 35.2% for the quarters ended
September 30, 2024 and December 31, 2023, respectively.
(dollars in thousands)
Twelve months ended December 31,
2024
Twelve months ended December 31,
2023
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Assets
Loans
$
6,747,072
$
390,491
5.79
%
$
6,557,246
$
356,710
5.44
%
Investments-taxable
2,008,823
68,434
3.41
%
2,272,301
75,203
3.31
%
Investments-nontaxable (1)
136,530
4,700
3.44
%
181,766
6,656
3.66
%
Total investments
2,145,353
73,134
3.41
%
2,454,067
81,859
3.34
%
Cash at Fed Reserve and other banks
80,439
4,098
5.09
%
26,469
1,321
4.99
%
Total earning assets
8,972,864
467,723
5.21
%
9,037,782
439,890
4.87
%
Other assets, net
784,462
832,407
Total assets
$
9,757,326
$
9,870,189
Liabilities and shareholders’ equity
Interest-bearing demand deposits
$
1,734,900
$
22,998
1.33
%
$
1,709,930
$
11,190
0.65
%
Savings deposits
2,677,726
49,028
1.83
%
2,805,424
31,444
1.12
%
Time deposits
999,143
41,100
4.11
%
473,688
12,453
2.63
%
Total interest-bearing deposits
5,411,769
113,126
2.09
%
4,989,042
55,087
1.10
%
Other borrowings
294,318
14,706
5.00
%
430,736
19,712
4.58
%
Junior subordinated debt
101,139
7,372
7.29
%
101,064
6,878
6.81
%
Total interest-bearing liabilities
5,807,226
135,204
2.33
%
5,520,842
81,677
1.48
%
Noninterest-bearing deposits
2,584,904
3,068,839
Other liabilities
165,056
178,072
Shareholders’ equity
1,200,140
1,102,436
Total liabilities and shareholders’
equity
$
9,757,326
$
9,870,189
Net interest rate spread (1) (2)
2.88
%
3.39
%
Net interest income and margin (1) (3)
$
332,519
3.71
%
$
358,213
3.96
%
(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 December 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 December 31, 2024, September 30, 2024, and December
31, 2023, the weighted average coupon on loan production in the
quarter was 6.94%, 7.63% and 7.31%, respectively. Included in the
December 31, 2024, total loans are adjustable rate loans totaling
$4.3 billion, of which, $907.1 million are considered floating
based on the Wall Street Prime index. In addition, the Company
holds certain investment securities with fair values totaling
$355.4 million which are subject to repricing on not less than a
quarterly basis.
Asset Quality and Credit Loss
Provisioning
During the three months ended December 31, 2024, the Company
recorded a provision for credit losses of $1.7 million, as compared
to $0.2 million during the trailing quarter, and $6.0 million
during the fourth quarter of 2023.
Three months ended
Twelve months ended
(dollars in thousands)
December 31, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Addition to allowance for credit
losses
1,812
320
6,040
6,482
22,455
Addition to (reversal of) reserve for
unfunded loan commitments
(110
)
(100
)
(50
)
150
1,535
Total provision for credit losses
1,702
220
5,990
6,632
23,990
The provision for credit losses on loans of $1.8 million during
the current quarter resulted from net charge-offs approximating
$0.2 million and increases in general reserves, for both
qualitative and quantitative factors, as a result of loan growth
and, to a lesser extent, changes in loan risk grades. Changes in
specific reserves on individually evaluated credits were not
meaningful during the quarter.
Three Months Ended December
31,
Twelve months ended December
31,
(dollars in thousands)
2024
2023
2024
2023
Balance, beginning of period
$
123,760
$
115,812
$
121,522
$
105,680
Provision for credit losses
1,812
6,040
6,482
22,455
Loans charged-off
(722
)
(749
)
(4,051
)
(8,140
)
Recoveries of previously charged-off
loans
516
419
1,413
1,527
Balance, end of period
$
125,366
$
121,522
$
125,366
$
121,522
The allowance for credit losses (ACL) was $125.4 million or
1.85% of total loans as of December 31, 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, 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 decreased by $5.2 million during
the quarter ended December 31, 2024, to $32.7 million, as compared
to $37.9 million at September 30, 2024. The majority of loans
identified as past due are well-secured by collateral, and
approximately $13.1 million is less than 90 days delinquent.
Non-performing loans were $44.1 million at December 31, 2024, an
increase of $2.5 million from $41.6 million as of September 30,
2024, and an increase of $12.2 million from $31.9 million as of
December 31, 2023. Management continues to proactively work with
these borrowers to identify actionable and appropriate resolution
strategies which are customary for the industries. Of the $44.1
million loans designated as non-performing as of December 31, 2024,
approximately $13.2 million are current or less than 30 days past
due with respect to payments required under their existing loan
agreements.
December 31,
% of Loans Outstanding
September 30,
% of Loans Outstanding
December 31,
% of Loans Outstanding
(dollars in thousands)
2024
2024
2023
Risk Rating:
Pass
$
6,539,560
96.6
%
$
6,461,451
96.7
%
$
6,603,161
97.2
%
Special Mention
110,935
1.6
%
104,759
1.6
%
103,812
1.5
%
Substandard
118,028
1.7
%
117,681
1.8
%
87,497
1.3
%
Total
$
6,768,523
$
6,683,891
$
6,794,470
Classified loans to total loans
1.74
%
1.76
%
1.29
%
Loans past due 30+ days to total loans
0.48
%
0.57
%
0.29
%
The ratio of classified loans to total loans of 1.74% as of
December 31, 2024, increased 3 basis points from September 30,
2024, and increased 45 basis points from the comparative quarter
ended 2023. The change in classified loans outstanding as compared
to the trailing quarter totaled $6.5 million. Loans with the risk
grade classification substandard increased by $0.3 million over the
trailing quarter without any material changes in the mix of
underlying collateral type. 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 $229.0 million as of
December 31, 2024, an increase of $37.7 million from December 31,
2023.
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 December 31, 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
$2.8 million as of September 30, 2024. Non-performing assets of
$46.9 million at December 31, 2024, represented 0.48% of total
assets, a change from the $44.4 million or 0.45% and $34.6 million
or 0.35% as of September 30, 2024 and December 31, 2023,
respectively.
Allocation of Credit Loss Reserves by Loan Type
As of December 31, 2024
As of September 30, 2024
As of December 31, 2023
(dollars in thousands)
Amount
% of Loans Outstanding
Amount
% of Loans Outstanding
Amount
% of Loans Outstanding
Commercial real estate:
CRE - Non-Owner Occupied
$
37,229
1.60
%
$
36,206
1.61
%
$
35,077
1.58
%
CRE - Owner Occupied
15,747
1.64
%
15,382
1.62
%
15,081
1.58
%
Multifamily
15,913
1.55
%
15,735
1.54
%
14,418
1.52
%
Farmland
3,960
1.49
%
4,016
1.50
%
4,288
1.58
%
Total commercial real estate loans
72,849
1.59
%
71,339
1.59
%
68,864
1.57
%
Consumer:
SFR 1-4 1st Liens
14,227
1.65
%
14,366
1.66
%
14,009
1.59
%
SFR HELOCs and Junior Liens
10,411
2.86
%
10,185
2.87
%
10,273
2.88
%
Other
2,825
4.87
%
2,953
4.70
%
3,171
4.34
%
Total consumer loans
27,463
2.14
%
27,504
2.14
%
27,453
2.09
%
Commercial and Industrial
14,397
3.05
%
14,453
2.98
%
12,750
2.17
%
Construction
7,224
2.58
%
7,119
2.58
%
8,856
2.55
%
Agricultural Production
3,403
2.24
%
3,312
2.30
%
3,589
2.48
%
Leases
30
0.44
%
33
0.44
%
10
0.12
%
Allowance for credit losses
125,366
1.85
%
123,760
1.85
%
121,522
1.79
%
Reserve for unfunded loan commitments
6,000
6,110
5,850
Total allowance for credit losses
$
131,366
$
129,870
1.92
%
$
127,372
1.87
%
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 December 31, 2024, the unamortized discount associated
with acquired loans totaled $20.3 million, which, when combined
with the total allowance for credit losses above, represents 2.24%
of total loans.
Non-interest Income
Three months ended
(dollars in thousands)
December 31, 2024
September 30, 2024
Change
% Change
ATM and interchange fees
$
6,306
$
6,472
$
(166
)
(2.6
)%
Service charges on deposit accounts
4,962
4,979
(17
)
(0.3
)%
Other service fees
1,425
1,224
201
16.4
%
Mortgage banking service fees
434
439
(5
)
(1.1
)%
Change in value of mortgage servicing
rights
(12
)
(332
)
320
(96.4
)%
Total service charges and fees
13,115
12,782
333
2.6
%
Increase in cash value of life
insurance
837
786
51
6.5
%
Asset management and commission income
1,584
1,502
82
5.5
%
Gain on sale of loans
334
549
(215
)
(39.2
)%
Lease brokerage income
78
62
16
25.8
%
Sale of customer checks
300
303
(3
)
(1.0
)%
(Loss) gain on sale or exchange of
investment securities
—
2
(2
)
(100.0
)%
(Loss) gain on marketable equity
securities
(81
)
356
(437
)
(122.8
)%
Other income
108
153
(45
)
(29.4
)%
Total other non-interest income
3,160
3,713
(553
)
(14.9
)%
Total non-interest income
$
16,275
$
16,495
$
(220
)
(1.3
)%
Total non-interest income decreased $0.2 million or 1.3% to
$16.3 million during the three months ended December 31, 2024,
compared to $16.5 million during the quarter ended September 30,
2024. Net gain (loss) from the change in value of equity securities
declined by $0.4 million as compared to the prior quarter, largely
the result of $0.3 million in non-recurring benefit earned in the
trailing quarter from the valuation change in Visa equity
securities. The remaining components of non-interest income are
largely consistent period over period.
Three months ended December
31,
(dollars in thousands)
2024
2023
Change
% Change
ATM and interchange fees
$
6,306
$
6,531
$
(225
)
(3.4
)%
Service charges on deposit accounts
4,962
4,732
230
4.9
%
Other service fees
1,425
1,432
(7
)
(0.5
)%
Mortgage banking service fees
434
444
(10
)
(2.3
)%
Change in value of mortgage servicing
rights
(12
)
(291
)
279
(95.9
)%
Total service charges and fees
13,115
12,848
267
2.1
%
Increase in cash value of life
insurance
837
876
(39
)
(4.5
)%
Asset management and commission income
1,584
1,284
300
23.4
%
Gain on sale of loans
334
283
51
18.0
%
Lease brokerage income
78
109
(31
)
(28.4
)%
Sale of customer checks
300
292
8
2.7
%
(Loss) gain on sale or exchange of
investment securities
—
(120
)
120
(100.0
)%
(Loss) gain on marketable equity
securities
(81
)
117
(198
)
(169.2
)%
Other income
108
351
(243
)
(69.2
)%
Total other non-interest income
3,160
3,192
(32
)
(1.0
)%
Total non-interest income
$
16,275
$
16,040
$
235
1.5
%
Non-interest income increased $0.2 million or 1.5% to $16.3
million during the three months ended December 31, 2024, compared
to $16.0 million during the comparative quarter ended December 31,
2023. Elevated activity and volumes of assets under management
drove an increase in asset management and commission income
totaling $0.3 million or 23.4%.
Twelve months ended December
31,
(dollars in thousands)
2024
2023
Change
% Change
ATM and interchange fees
$
25,319
$
26,459
$
(1,140
)
(4.3
)%
Service charges on deposit accounts
19,451
17,595
1,856
10.5
%
Other service fees
5,301
4,732
569
12.0
%
Mortgage banking service fees
1,739
1,808
(69
)
(3.8
)%
Change in value of mortgage servicing
rights
(480
)
(506
)
26
(5.1
)%
Total service charges and fees
51,330
50,088
1,242
2.5
%
Increase in cash value of life
insurance
3,257
3,150
107
3.4
%
Asset management and commission income
5,573
4,517
1,056
23.4
%
Gain on sale of loans
1,532
1,166
366
31.4
%
Lease brokerage income
455
441
14
3.2
%
Sale of customer checks
1,216
1,383
(167
)
(12.1
)%
(Loss) gain on sale or exchange of
investment securities
(43
)
(284
)
241
(84.9
)%
(Loss) gain on marketable equity
securities
126
36
90
250.0
%
Other income
961
903
58
6.4
%
Total other non-interest income
13,077
11,312
1,765
15.6
%
Total non-interest income
$
64,407
$
61,400
$
3,007
4.9
%
Non-interest income increased $3.0 million or 4.9% to $64.4
million during the twelve months ended December 31, 2024, compared
to $61.4 million during the comparative twelve months ended
December 31, 2023. ATM and interchange fees declined in the 2024
period and resulted in a decrease of $1.1 million as compared to
the twelve months ended December 31, 2024. Meanwhile, service
charges on deposit accounts and other service fees increased by
$1.9 million and $0.6 million, respectively, 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. As
noted above, elevated activity within asset management and the
increases in value of Visa equity securities further contributed to
the overall improvement in income during the year ended 2024.
Non-interest Expense
Three months ended
(dollars in thousands)
December 31, 2024
September 30, 2024
Change
% Change
Base salaries, net of deferred loan
origination costs
$
24,583
$
24,407
$
176
0.7
%
Incentive compensation
4,568
4,361
207
4.7
%
Benefits and other compensation costs
6,175
6,782
(607
)
(9.0
)%
Total salaries and benefits expense
35,326
35,550
(224
)
(0.6
)%
Occupancy
4,206
4,191
15
0.4
%
Data processing and software
5,493
5,258
235
4.5
%
Equipment
1,364
1,374
(10
)
(0.7
)%
Intangible amortization
1,030
1,030
—
—
%
Advertising
1,118
1,152
(34
)
(3.0
)%
ATM and POS network charges
1,791
1,712
79
4.6
%
Professional fees
1,747
1,893
(146
)
(7.7
)%
Telecommunications
477
507
(30
)
(5.9
)%
Regulatory assessments and insurance
1,300
1,256
44
3.5
%
Postage
346
335
11
3.3
%
Operational loss
482
603
(121
)
(20.1
)%
Courier service
538
542
(4
)
(0.7
)%
(Gain) loss on sale or acquisition of
foreclosed assets
(61
)
26
(87
)
(334.6
)%
(Gain) loss on disposal of fixed
assets
7
6
1
16.7
%
Other miscellaneous expense
4,611
4,052
559
13.8
%
Total other non-interest expense
24,449
23,937
512
2.1
%
Total non-interest expense
$
59,775
$
59,487
$
288
0.5
%
Average full-time equivalent staff
1,172
1,161
11
0.9
%
Total non-interest expense for the quarter ended December 31,
2024, increased $0.3 million or 0.5% to $59.8 million as compared
to $59.5 million during the trailing quarter ended September 30,
2024. Total salaries and benefits expense, the largest non-interest
expense component, decreased nominally by $0.2 million or 0.6% as
estimates associated with retirement benefits were reduced by
$513,000 in the quarter. Other miscellaneous expenses increased by
$0.6 million or 13.8% due to several factors, including increased
business travel and elevated expenses on real estate owned.
Three months ended December
31,
(dollars in thousands)
2024
2023
Change
% Change
Base salaries, net of deferred loan
origination costs
$
24,583
$
23,889
$
694
2.9
%
Incentive compensation
4,568
3,894
674
17.3
%
Benefits and other compensation costs
6,175
6,272
(97
)
(1.5
)%
Total salaries and benefits expense
35,326
34,055
1,271
3.7
%
Occupancy
4,206
4,036
170
4.2
%
Data processing and software
5,493
5,017
476
9.5
%
Equipment
1,364
1,322
42
3.2
%
Intangible amortization
1,030
1,216
(186
)
(15.3
)%
Advertising
1,118
875
243
27.8
%
ATM and POS network charges
1,791
1,863
(72
)
(3.9
)%
Professional fees
1,747
2,032
(285
)
(14.0
)%
Telecommunications
477
576
(99
)
(17.2
)%
Regulatory assessments and insurance
1,300
1,297
3
0.2
%
Postage
346
320
26
8.1
%
Operational loss
482
445
37
8.3
%
Courier service
538
537
1
0.2
%
(Gain) loss on sale or acquisition of
foreclosed assets
(61
)
19
(80
)
(421.1
)%
(Gain) loss on disposal of fixed
assets
7
1
6
600.0
%
Other miscellaneous expense
4,611
6,656
(2,045
)
(30.7
)%
Total other non-interest expense
24,449
26,212
(1,763
)
(6.7
)%
Total non-interest expense
$
59,775
$
60,267
$
(492
)
(0.8
)%
Average full-time equivalent staff
1,172
1,211
(39
)
(3.2
)%
Total non-interest expense decreased $0.5 million or 0.8% to
$59.8 million during the three months ended December 31, 2024, as
compared to $60.3 million for the quarter ended December 31, 2023.
Total salaries and benefits expense increased by $1.3 million or
3.7%, reflecting the increase of $0.7 million in salaries, largely
the result of routine merit increases and more recently strategic
hiring focused on loan and deposit production; incentive
compensation costs also increased by $0.7 million, reflecting
changes in the design of those plans.
Twelve months ended December
31,
(dollars in thousands)
2024
2023
Change
% Change
Base salaries, net of deferred loan
origination costs
$
96,862
$
94,564
$
2,298
2.4
%
Incentive compensation
16,897
15,557
1,340
8.6
%
Benefits and other compensation costs
26,822
25,674
1,148
4.5
%
Total salaries and benefits expense
140,581
135,795
4,786
3.5
%
Occupancy
16,411
16,135
276
1.7
%
Data processing and software
20,952
18,933
2,019
10.7
%
Equipment
5,424
5,644
(220
)
(3.9
)%
Intangible amortization
4,120
6,118
(1,998
)
(32.7
)%
Advertising
3,851
3,531
320
9.1
%
ATM and POS network charges
7,151
7,080
71
1.0
%
Professional fees
6,794
7,358
(564
)
(7.7
)%
Telecommunications
2,053
2,547
(494
)
(19.4
)%
Regulatory assessments and insurance
4,951
5,276
(325
)
(6.2
)%
Postage
1,329
1,236
93
7.5
%
Operational loss
1,681
2,444
(763
)
(31.2
)%
Courier service
2,119
1,851
268
14.5
%
(Gain) loss on sale or acquisition of
foreclosed assets
(73
)
(133
)
60
(45.1
)%
(Gain) loss on disposal of fixed
assets
19
23
(4
)
(17.4
)%
Other miscellaneous expense
16,742
19,344
(2,602
)
(13.5
)%
Total other non-interest expense
93,524
97,387
(3,863
)
(4.0
)%
Total non-interest expense
$
234,105
$
233,182
$
923
0.4
%
Average full-time equivalent staff
1,170
1,214
(44
)
(3.6
)%
Total non-interest expense increased $0.9 million or 0.4% to
$234.1 million during the twelve months ended December 31, 2024, as
compared to $233.2 million for the twelve months ended December 31,
2023. This was largely attributed to an increase of $4.8 million or
3.5% in total salaries and benefits expense to $140.6 million, from
routine compensation adjustments and other increases in benefits
and compensation. As noted above, 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 $2.0 million or 10.7% 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 $2.0 million or
32.7% and reductions in operational losses of $0.8 million or 31.2%
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 25.3% for the quarter ended
December 31, 2024, as compared to 26.3% for the quarter ended
September 30, 2024, and 25.9% for the year ended December 31, 2024,
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; current and
future economic and market conditions, including declines 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 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 impact of the 2023 cyber security
ransomware incident, including the pending litigation, on our
operations and reputation; 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; 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 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
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Revenue and Expense Data
Interest income
$
116,842
$
117,347
$
117,032
$
115,417
$
115,909
Interest expense
32,752
34,736
35,035
32,681
29,292
Net interest income
84,090
82,611
81,997
82,736
86,617
Provision for credit losses
1,702
220
405
4,305
5,990
Noninterest income:
Service charges and fees
13,115
12,782
12,796
12,637
12,848
(Loss) gain on sale or exchange of
investment securities
—
2
(45
)
—
(120
)
Other income
3,160
3,711
3,115
3,134
3,312
Total noninterest income
16,275
16,495
15,866
15,771
16,040
Noninterest expense:
Salaries and benefits
35,326
35,550
35,401
34,304
34,055
Occupancy and equipment
5,570
5,565
5,393
5,307
5,358
Data processing and network
7,284
6,970
7,081
6,768
6,880
Other noninterest expense
11,595
11,402
10,464
10,125
13,974
Total noninterest expense
59,775
59,487
58,339
56,504
60,267
Total income before taxes
38,888
39,399
39,119
37,698
36,400
Provision for income taxes
9,854
10,348
10,085
9,949
10,325
Net income
$
29,034
$
29,051
$
29,034
$
27,749
$
26,075
Share Data
Basic earnings per share
$
0.88
$
0.88
$
0.88
$
0.83
$
0.78
Diluted earnings per share
$
0.88
$
0.88
$
0.87
$
0.83
$
0.78
Dividends per share
$
0.33
$
0.33
$
0.33
$
0.33
$
0.30
Book value per common share
$
37.03
$
37.55
$
35.62
$
35.06
$
34.86
Tangible book value per common share
(1)
$
27.60
$
28.09
$
26.13
$
25.60
$
25.39
Shares outstanding
32,970,425
33,000,508
32,989,327
33,168,770
33,268,102
Weighted average shares
32,993,975
32,992,855
33,121,271
33,245,377
33,266,959
Weighted average diluted shares
33,161,715
33,136,858
33,243,955
33,370,118
33,351,737
Credit Quality
Allowance for credit losses to gross
loans
1.85
%
1.85
%
1.83
%
1.83
%
1.79
%
Loans past due 30 days or more
$
32,711
$
37,888
$
30,372
$
16,474
$
19,415
Total nonperforming loans
$
44,096
$
41,636
$
32,774
$
34,242
$
31,891
Total nonperforming assets
$
46,882
$
44,400
$
35,267
$
36,735
$
34,595
Loans charged-off
$
722
$
444
$
1,610
$
1,275
$
749
Loans recovered
$
516
$
367
$
398
$
132
$
419
Selected Financial Ratios
Return on average total assets
1.19
%
1.20
%
1.19
%
1.13
%
1.05
%
Return on average equity
9.30
%
9.52
%
9.99
%
9.50
%
9.43
%
Average yield on loans
5.78
%
5.83
%
5.82
%
5.72
%
5.64
%
Average yield on interest-earning
assets
5.22
%
5.26
%
5.24
%
5.13
%
5.09
%
Average rate on interest-bearing
deposits
2.15
%
2.23
%
2.14
%
1.83
%
1.62
%
Average cost of total deposits
1.46
%
1.52
%
1.45
%
1.21
%
1.05
%
Average cost of total deposits and other
borrowings
1.50
%
1.59
%
1.59
%
1.47
%
1.28
%
Average rate on borrowings &
subordinated debt
5.80
%
5.83
%
5.65
%
5.35
%
5.26
%
Average rate on interest-bearing
liabilities
2.27
%
2.40
%
2.39
%
2.24
%
2.01
%
Net interest margin (fully tax-equivalent)
(1)
3.76
%
3.71
%
3.68
%
3.68
%
3.81
%
Loans to deposits
83.69
%
83.16
%
83.76
%
85.14
%
86.73
%
Efficiency ratio
59.56
%
60.02
%
59.61
%
57.36
%
58.71
%
Supplemental Loan Interest Income
Data
Discount accretion on acquired loans
$
1,129
$
1,018
$
850
$
1,332
$
1,459
All other loan interest income (1)
$
96,563
$
97,067
$
97,379
$
95,153
$
94,382
Total loan interest income (1)
$
97,692
$
98,085
$
98,229
$
96,485
$
95,841
(1)
Non-GAAP measure
TriCo Bancshares—Condensed Consolidated
Financial Data (unaudited)
(dollars in thousands, except per share
data)
Balance Sheet Data
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Cash and due from banks
$
144,956
$
320,114
$
206,558
$
82,836
$
98,701
Securities, available for sale, net
1,907,494
1,981,960
1,946,167
2,076,494
2,155,138
Securities, held to maturity, net
111,866
117,259
122,673
127,811
133,494
Restricted equity securities
17,250
17,250
17,250
17,250
17,250
Loans held for sale
709
1,995
474
1,346
458
Loans:
Commercial real estate
4,577,632
4,487,524
4,461,111
4,443,768
4,394,802
Consumer
1,281,059
1,283,963
1,300,727
1,303,757
1,313,268
Commercial and industrial
471,271
484,763
548,625
549,780
586,455
Construction
279,933
276,095
283,374
348,981
347,198
Agriculture production
151,822
144,123
140,239
145,159
144,497
Leases
6,806
7,423
8,450
9,250
8,250
Total loans, gross
6,768,523
6,683,891
6,742,526
6,800,695
6,794,470
Allowance for credit losses
(125,366
)
(123,760
)
(123,517
)
(124,394
)
(121,522
)
Total loans, net
6,643,157
6,560,131
6,619,009
6,676,301
6,672,948
Premises and equipment
70,287
70,423
70,621
71,001
71,347
Cash value of life insurance
140,149
139,312
138,525
137,695
136,892
Accrued interest receivable
34,810
33,061
35,527
35,783
36,768
Goodwill
304,442
304,442
304,442
304,442
304,442
Other intangible assets
6,432
7,462
8,492
9,522
10,552
Operating leases, right-of-use
23,529
24,716
25,113
26,240
26,133
Other assets
268,647
245,765
246,548
247,046
245,966
Total assets
$
9,673,728
$
9,823,890
$
9,741,399
$
9,813,767
$
9,910,089
Deposits:
Noninterest-bearing demand deposits
$
2,548,613
$
2,547,736
$
2,557,063
$
2,600,448
$
2,722,689
Interest-bearing demand deposits
1,758,629
1,708,726
1,791,466
1,742,875
1,731,814
Savings deposits
2,657,849
2,690,045
2,667,006
2,672,537
2,682,068
Time certificates
1,122,485
1,090,584
1,034,695
971,798
697,467
Total deposits
8,087,576
8,037,091
8,050,230
7,987,658
7,834,038
Accrued interest payable
11,501
11,664
12,018
10,224
8,445
Operating lease liability
25,437
26,668
27,122
28,299
28,261
Other liabilities
137,506
141,521
128,063
131,006
145,982
Other borrowings
89,610
266,767
247,773
392,409
632,582
Junior subordinated debt
101,191
101,164
101,143
101,120
101,099
Total liabilities
8,452,821
8,584,875
8,566,349
8,650,716
8,750,407
Common stock
693,462
693,176
691,878
696,464
697,349
Retained earnings
679,907
662,816
644,687
630,954
615,502
Accumulated other comprehensive loss, net
of tax
(152,462
)
(116,977
)
(161,515
)
(164,367
)
(153,169
)
Total shareholders’ equity
$
1,220,907
$
1,239,015
$
1,175,050
$
1,163,051
$
1,159,682
Quarterly Average Balance Data
Average loans
$
6,720,732
$
6,690,326
$
6,792,303
$
6,785,840
$
6,746,153
Average interest-earning assets
$
8,932,077
$
8,892,223
$
9,001,674
$
9,066,537
$
9,064,483
Average total assets
$
9,725,643
$
9,666,979
$
9,782,228
$
9,855,797
$
9,879,355
Average deposits
$
8,118,663
$
8,020,936
$
8,024,441
$
7,821,044
$
7,990,993
Average borrowings and subordinated
debt
$
196,375
$
276,418
$
426,732
$
685,802
$
617,046
Average total equity
$
1,241,522
$
1,214,510
$
1,169,324
$
1,174,592
$
1,097,431
Capital Ratio Data
Total risk-based capital ratio
15.7
%
15.6
%
15.2
%
15.0
%
14.7
%
Tier 1 capital ratio
14.0
%
13.8
%
13.4
%
13.2
%
12.9
%
Tier 1 common equity ratio
13.2
%
13.1
%
12.7
%
12.5
%
12.2
%
Tier 1 leverage ratio
11.7
%
11.6
%
11.2
%
11.0
%
10.7
%
Tangible capital ratio (1)
9.7
%
9.7
%
9.1
%
8.9
%
8.8
%
(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
Twelve months ended
(dollars in thousands)
December 31, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Net interest margin
Acquired loans discount accretion,
net:
Amount (included in interest income)
$
1,129
$
1,018
$
1,459
$
4,329
$
5,651
Effect on average loan yield
0.06
%
0.06
%
0.09
%
0.07
%
0.09
%
Effect on net interest margin (FTE)
0.05
%
0.05
%
0.06
%
0.05
%
0.06
%
Net interest margin (FTE)
3.76
%
3.71
%
3.81
%
3.71
%
3.96
%
Net interest margin less effect of
acquired loan discount accretion (Non-GAAP)
3.71
%
3.66
%
3.75
%
3.66
%
3.90
%
Three months ended
Twelve months ended
(dollars in thousands)
December 31, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Pre-tax pre-provision return on average
assets or equity
Net income (GAAP)
$
29,034
$
29,051
$
26,075
$
114,868
$
117,390
Exclude provision for income taxes
9,854
10,348
10,325
40,236
43,515
Exclude provision for credit losses
1,702
220
5,990
6,632
23,990
Net income before income tax and provision
expense (Non-GAAP)
$
40,590
$
39,619
$
42,390
$
161,736
$
184,895
Average assets (GAAP)
$
9,725,643
$
9,666,979
$
9,879,355
$
9,757,326
$
9,870,189
Average equity (GAAP)
$
1,241,522
$
1,214,510
$
1,097,431
$
1,200,140
$
1,102,436
Return on average assets (GAAP)
(annualized)
1.19
%
1.20
%
1.05
%
1.18
%
1.19
%
Pre-tax pre-provision return on average
assets (Non-GAAP) (annualized)
1.66
%
1.63
%
1.70
%
1.66
%
1.87
%
Return on average equity (GAAP)
(annualized)
9.30
%
9.52
%
9.43
%
9.57
%
10.65
%
Pre-tax pre-provision return on average
equity (Non-GAAP) (annualized)
13.01
%
12.98
%
15.32
%
13.48
%
16.77
%
Three months ended
Twelve months ended
(dollars in thousands)
December 31, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Return on tangible common
equity
Average total shareholders' equity
$
1,241,522
$
1,214,510
$
1,097,431
$
1,200,140
$
1,102,436
Exclude average goodwill
304,442
304,442
304,442
304,442
304,442
Exclude average other intangibles
7,085
8,093
11,160
8,592
13,611
Average tangible common equity
(Non-GAAP)
$
929,995
$
901,975
$
781,829
$
887,106
$
784,383
Net income (GAAP)
$
29,034
$
29,051
$
26,075
$
114,868
$
117,390
Exclude amortization of intangible assets,
net of tax effect
725
725
857
2,900
4,309
Tangible net income available to common
shareholders (Non-GAAP)
$
29,759
$
29,776
$
26,932
$
117,768
$
121,699
Return on average equity (GAAP)
(annualized)
9.30
%
9.52
%
9.43
%
9.57
%
10.65
%
Return on average tangible common equity
(Non-GAAP)
12.73
%
13.13
%
13.67
%
13.28
%
15.52
%
Three months ended
(dollars in thousands)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Tangible shareholders' equity to
tangible assets
Shareholders' equity (GAAP)
$
1,220,907
$
1,239,015
$
1,175,050
$
1,163,051
$
1,159,682
Exclude goodwill and other intangible
assets, net
310,874
311,904
312,934
313,964
314,994
Tangible shareholders' equity
(Non-GAAP)
$
910,033
$
927,111
$
862,116
$
849,087
$
844,688
Total assets (GAAP)
$
9,673,728
$
9,823,890
$
9,741,399
$
9,813,767
$
9,910,089
Exclude goodwill and other intangible
assets, net
310,874
311,904
312,934
313,964
314,994
Total tangible assets (Non-GAAP)
$
9,362,854
$
9,511,986
$
9,428,465
$
9,499,803
$
9,595,095
Shareholders' equity to total assets
(GAAP)
12.62
%
12.61
%
12.06
%
11.85
%
11.70
%
Tangible shareholders' equity to tangible
assets (Non-GAAP)
9.72
%
9.75
%
9.14
%
8.94
%
8.80
%
Three months ended
(dollars in thousands)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Tangible common shareholders' equity
per share
Tangible shareholders' equity
(Non-GAAP)
$
910,033
$
927,111
$
862,116
$
849,087
$
844,688
Common shares outstanding at end of
period
32,970,425
33,000,508
32,989,327
33,168,770
33,268,102
Common shareholders' equity (book value)
per share (GAAP)
$
37.03
$
37.55
$
35.62
$
35.06
$
34.86
Tangible common shareholders' equity
(tangible book value) per share (Non-GAAP)
$
27.60
$
28.09
$
26.13
$
25.60
$
25.39
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250123220568/en/
Investor Contact Peter G.
Wiese, EVP & CFO, (530) 898-0300
TriCo Bancshares (NASDAQ:TCBK)
과거 데이터 주식 차트
부터 1월(1) 2025 으로 2월(2) 2025
TriCo Bancshares (NASDAQ:TCBK)
과거 데이터 주식 차트
부터 2월(2) 2024 으로 2월(2) 2025
