TriCo Bancshares Reports Fourth Quarter 2024 Net Income of $29.0 Million, Diluted EPS of $0.88
TCBK
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
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
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
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
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
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