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

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TriCo Bancshares (TCBK) reported Q4 2024 net income of $29.0 million, or $0.88 per diluted share, consistent with the previous quarter's $29.1 million. The company's net interest margin increased to 3.76%, up 5 basis points from 3.71% in Q3, with net interest income rising to $84.4 million.

Loan balances grew by $84.6 million (5.1% annualized) from Q3, while deposits increased by $50.5 million (2.5% annualized). Year-over-year, deposits rose by $253.5 million (3.2%), though loans decreased slightly by $25.9 million (0.4%).

The bank's efficiency ratio improved to 59.56% from 60.02% in Q3. The provision for credit losses increased to $1.7 million from $0.2 million in Q3, driven by loan growth. Non-performing assets to total assets were 0.48%, up from 0.45% in Q3 and 0.35% year-over-year.

TriCo Bancshares (TCBK) ha riportato un reddito netto nel Q4 2024 di $29,0 milioni, ovvero $0,88 per azione totalmente diluita, in linea con i $29,1 milioni del trimestre precedente. Il margine di interesse netto dell'azienda è aumentato al 3,76%, in crescita di 5 punti base rispetto al 3,71% del Q3, con un reddito da interessi netti che è salito a $84,4 milioni.

I saldi dei prestiti sono aumentati di $84,6 milioni (5,1% annualizzato) rispetto al Q3, mentre i depositi sono aumentati di $50,5 milioni (2,5% annualizzato). Su base annua, i depositi sono aumentati di $253,5 milioni (3,2%), sebbene i prestiti siano leggermente diminuiti di $25,9 milioni (0,4%).

Il rapporto di efficienza della banca è migliorato al 59,56% rispetto al 60,02% del Q3. Il fondo per perdite su crediti è aumentato a $1,7 milioni da $0,2 milioni nel Q3, sostenuto dalla crescita dei prestiti. Gli attivi non performanti rispetto agli attivi totali erano dello 0,48%, in aumento dallo 0,45% del Q3 e dallo 0,35% su base annua.

TriCo Bancshares (TCBK) reportó un ingreso neto de $29,0 millones en el cuarto trimestre de 2024, o $0,88 por acción diluida, consistente con los $29,1 millones del trimestre anterior. El margen de interés neto de la compañía aumentó al 3,76%, subiendo 5 puntos base desde el 3,71% en el Q3, con un ingreso por intereses netos que se elevó a $84,4 millones.

Los saldos de los préstamos crecieron en $84,6 millones (5,1% anualizado) en comparación con el Q3, mientras que los depósitos aumentaron en $50,5 millones (2,5% anualizado). En comparación con el año anterior, los depósitos subieron en $253,5 millones (3,2%), aunque los préstamos disminuyeron ligeramente en $25,9 millones (0,4%).

El ratio de eficiencia del banco mejoró al 59,56% desde el 60,02% en el Q3. La provisión para pérdidas crediticias aumentó a $1,7 millones desde $0,2 millones en el Q3, impulsada por el crecimiento de los préstamos. Los activos no productivos respecto a los activos totales fueron del 0,48%, en comparación con el 0,45% en el Q3 y el 0,35% interanual.

TriCo Bancshares (TCBK)는 2024년 4분기에 순이익이 2,900만 달러, 즉 희석주당 0.88달러라고 보고했습니다. 이는 이전 분기 2,910만 달러와 일치합니다. 회사의 순이자 마진은 3.76%로 증가하여 Q3의 3.71%보다 5bps 상승했으며, 순이자수익은 8,440만 달러로 증가했습니다.

대출 잔고는 Q3에서 8460만 달러(연율 5.1%) 증가했으며, 예금은 5050만 달러(연율 2.5%) 증가했습니다. 전년 대비 예금은 2억 5,350만 달러(3.2%) 증가했지만 대출은 2,590만 달러(0.4%) 감소했습니다.

은행의 효율성 비율은 Q3의 60.02%에서 59.56%로 개선되었습니다. 대손충당금은 Q3의 20만 달러에서 170만 달러로 증가했으며, 이는 대출 증가에 기인합니다. 비실행 자산 비율은 총 자산의 0.48%로 Q3의 0.45% 및 전년 대비 0.35%에서 상승했습니다.

TriCo Bancshares (TCBK) a annoncé un revenu net de 29,0 millions de dollars pour le quatrième trimestre de 2024, soit 0,88 dollar par action diluée, en ligne avec les 29,1 millions de dollars du trimestre précédent. La marge d'intérêt nette de l'entreprise a augmenté à 3,76 %, en hausse de 5 points de base par rapport à 3,71 % au T3, avec un revenu d'intérêts nets qui a grimpé à 84,4 millions de dollars.

Les soldes de prêts ont augmenté de 84,6 millions de dollars (5,1 % annualisé) par rapport au T3, tandis que les dépôts ont augmenté de 50,5 millions de dollars (2,5 % annualisé). D'une année à l'autre, les dépôts ont augmenté de 253,5 millions de dollars (3,2 %), bien que les prêts aient légèrement diminué de 25,9 millions de dollars (0,4 %).

Le ratio d'efficacité de la banque s'est amélioré à 59,56 % contre 60,02 % au T3. Les provisions pour pertes de crédit ont augmenté à 1,7 million de dollars contre 0,2 million de dollars au T3, en raison de la croissance des prêts. Les actifs non performants par rapport aux actifs totaux s'élevaient à 0,48 %, en hausse par rapport à 0,45 % au T3 et 0,35 % d'une année sur l'autre.

TriCo Bancshares (TCBK) meldete für das 4. Quartal 2024 ein Nettoeinkommen von 29,0 Millionen USD, oder 0,88 USD pro verwässerter Aktie, was im Einklang mit den 29,1 Millionen USD des vorherigen Quartals steht. Die Nettozinsmarge des Unternehmens stieg auf 3,76%, was einem Anstieg von 5 Basispunkten gegenüber 3,71% im Q3 entspricht, wobei die Nettozins Einkommen auf 84,4 Millionen USD anstieg.

Die Darlehenssalden stiegen im Vergleich zum Q3 um 84,6 Millionen USD (annualisiert 5,1%), während die Einlagen um 50,5 Millionen USD (annualisiert 2,5%) zunahmen. Im Jahresvergleich stiegen die Einlagen um 253,5 Millionen USD (3,2%), während die Darlehen leicht um 25,9 Millionen USD (0,4%) zurückgingen.

Die Effizienzquote der Bank verbesserte sich auf 59,56% von 60,02% im Q3. Die Rückstellungen für Kreditverluste stiegen von 0,2 Millionen USD im Q3 auf 1,7 Millionen USD, was auf das Wachstum der Darlehen zurückzuführen ist. Der Anteil der notleidenden Anlagen an den Gesamtanlagen betrug 0,48%, ein Anstieg von 0,45% im Q3 und 0,35% im Jahresvergleich.

Positive
  • Net interest margin increased to 3.76%, up 5 basis points from previous quarter
  • Quarterly loan growth of $84.6 million (5.1% annualized)
  • Year-over-year deposit growth of $253.5 million (3.2%)
  • Efficiency ratio improved to 59.56% from 60.02% in previous quarter
Negative
  • Year-over-year loan decrease of $25.9 million (0.4%)
  • Provision for credit losses increased to $1.7 million from $0.2 million in Q3
  • Non-performing assets ratio increased to 0.48% from 0.35% year-over-year
  • Net income slightly decreased to $29.0 million from $29.1 million in Q3

Insights

TCBK delivered a solid Q4 2024 with stable earnings of $29.0 million ($0.88 per share) and encouraging operational trends despite a challenging rate environment. The bank demonstrated remarkable resilience in its net interest margin, which expanded to 3.76% - particularly impressive given three Fed rate cuts totaling 100 basis points during the quarter.

Key strengths emerged in several areas:

  • Strong loan growth at 5.1% annualized, driven by increased borrower demand as rates declined
  • Efficient deposit management with cost of deposits decreasing 6 basis points to 1.46%
  • Robust liquidity position with primary sources covering 160% of uninsured deposits
  • Healthy capital levels supporting a 9.30% return on equity

However, some caution flags warrant monitoring:

  • Credit quality metrics showed slight deterioration with NPAs increasing to 0.48% of assets
  • Continued pressure on the securities portfolio with $53.1 million in market value declines
  • Efficiency ratio at 59.56% remains elevated compared to historical levels

Looking ahead, TCBK appears well-positioned to navigate the changing rate environment with its strong core deposit base (non-interest bearing deposits at 31.8%) and disciplined balance sheet management. The bank's ability to expand margins while reducing funding costs demonstrates solid execution capabilities that should support continued steady performance.

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

CHICO, Calif.--(BUSINESS WIRE)-- 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

 

Investor Contact

Peter G. Wiese, EVP & CFO, (530) 898-0300

Source: TriCo Bancshares

FAQ

What was TCBK's earnings per share (EPS) in Q4 2024?

TCBK reported diluted earnings per share of $0.88 in Q4 2024, unchanged from Q3 2024 and up from $0.78 in Q4 2023.

How much did TCBK's loan portfolio grow in Q4 2024?

TCBK's loan balances increased by $84.6 million or 5.1% annualized in Q4 2024 compared to Q3 2024.

What was TCBK's net interest margin in Q4 2024?

TCBK's net interest margin was 3.76% in Q4 2024, an increase of 5 basis points from 3.71% in Q3 2024.

How did TCBK's deposit base change in Q4 2024?

Deposits increased by $50.5 million or 2.5% annualized in Q4 2024, and grew by $253.5 million or 3.2% year-over-year.

What was TCBK's efficiency ratio in Q4 2024?

TCBK's efficiency ratio was 59.56% in Q4 2024, improving from 60.02% in Q3 2024.

Stock TCBK logo
Trico Bancshares

NASDAQ:TCBK

TCBK Rankings

#2280 Ranked by Market Cap
#1043 Ranked by Dividends

TCBK Latest News

Nov 25, 2024
TriCo Bancshares Announces Quarterly Cash Dividend
Oct 30, 2024
Tri Counties Bank and FHLBank San Francisco Donate $200,000 to Black Homeownership
Oct 24, 2024
TriCo Bancshares Reports Third Quarter 2024 Net Income of $29.1 Million, Diluted EPS of $0.88
Sep 10, 2024
Scott Myers Joins Tri Counties Bank as Head of Wholesale Banking
Aug 23, 2024
TriCo Bancshares Announces Quarterly Cash Dividend

TCBK Stock Data

1.41B
30.32M
8.05%
64.48%
0.86%
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