EX-99.1 2 d393338dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

PRESS RELEASE     Contact:                 Richard P. Smith   
For Immediate Release     President & CEO (530) 898-0300   

TRICO BANCSHARES ANNOUNCES QUARTERLY RESULTS

CHICO, Calif. – (July 28, 2016) – TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank, today announced earnings of $9,405,000, or $0.41 per diluted share, for the three months ended June 30, 2016. For the three months ended June 30, 2015 the Company reported earnings of $11,366,000, or $0.49 per diluted share. Diluted shares outstanding were 23,070,151 and 22,980,033 for the three months ended June 30, 2016 and 2015, respectively.

The Company’s results for the three months ended June 30, 2016 include an accrual of $1,450,000 in expenses associated with employment-related legal proceedings previously disclosed by the Company under the heading “Legal Proceedings” in several of the Company’s recent periodic reports filed with the U.S. Securities and Exchange Commission. Also included in the results of the Company for the three months ended June 30, 2016 was $162,000 of nonrecurring noninterest expense related to the Company’s acquisition of three bank branches from Bank of America on March 18, 2016. Excluding the legal proceedings expense and nonrecurring merger related expense noted above, diluted earnings per share for the three months ended June 30, 2016 would have been higher by $0.04 than reported above, and earnings would have been $10,340,000 for the three months ended June 30, 2016. There were no nonrecurring expenses recorded during the three months ended June 30, 2015. In addition to the legal proceedings expense and nonrecurring merger related expense noted above, there were other expense and revenue items during the three months ended June 30, 2016 and 2015 that may be considered nonrecurring, and these items are described below in various sections of this announcement.

The following is a summary of the components of the Company’s consolidated net income, average common shares, and average diluted common shares outstanding for the periods indicated:

 

     Three months ended
June 30,
               
(dollars and shares in thousands)    2016      2015      $ Change      % Change  

Net Interest Income

   $ 41,160       $ 38,521       $ 2,639         6.9

Reversal of provision for loan losses

     773         633         140      

Noninterest income

     11,245         12,080         (835      (6.9 %) 

Noninterest expense

     (38,267      (32,436      (5,831      18.0

Provision for income taxes

     (5,506      (7,432      1,926         (25.9 %) 
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 9,405       $ 11,366       ($ 1,961      (17.3 %) 
  

 

 

    

 

 

    

 

 

    

 

 

 

Average common shares

     22,803         22,745         58         0.3

Average diluted common shares

     23,070         22,980         90         0.4


The following is a summary of certain of the Company’s consolidated assets and deposits as of the dates indicated:

 

Ending balances    As of June 30,                
($ ‘s in thousands)    2016      2015      $ Change      % Change  

Total assets

   $ 4,352,492       $ 3,893,855       $ 458,637         11.8

Total loans

     2,653,630         2,393,762         259,868         10.9

Total investments

     1,220,385         1,077,669         142,716         13.2

Total deposits

   $ 3,741,396       $ 3,341,682       $ 399,714         12.0
Qtrly Avg balances    As of June 30,                
($ ‘s in thousands)    2016      2015      $ Change      % Change  

Total assets

   $ 4,387,950       $ 3,894,196       $ 493,754         12.7

Total loans

     2,579,774         2,355,864         223,910         9.5

Total investments

     1,211,556         1,064,142         147,414         13.9

Total deposits

   $ 3,778,436       $ 3,347,874       $ 430,562         12.9

Included in the changes in the Company’s deposits from June 30, 2015 to June 30, 2016 is the addition of a $45 million certificate of deposit from the State of California on September 16, 2015, bringing the total of such certificates of deposit from the State of California to $50 million, and the addition of deposits from the acquisition of three bank branches from Bank of America, that totaled $161 million on the date of acquisition, March 18, 2016.

On March 18, 2016, Tri Counties Bank acquired three branches from Bank of America. The branches are located in the cities of Arcata, Eureka, and Fortuna in Humboldt County, California. The Bank paid $3,204,000 for deposit relationships with balances of $161,231,000 and loans with balances of $289,000.

The following table discloses the fair value of consideration transferred, the total identifiable net assets acquired and the resulting goodwill relating to the acquisition of three branch banking offices and certain deposits from Bank of America on March 18, 2016:

 

(in thousands)    March 18, 2016  

Fair value of consideration transferred:

  

Cash consideration

   $ 3,204   
  

 

 

 

Total fair value of consideration

     3,204   
  

 

 

 

Asset acquired:

  

Cash and cash equivalents

     159,520   

Loans

     289   

Premises and equipment

     1,590   

Core deposit intangible

     2,046   

Other assets

     141   
  

 

 

 

Total assets acquired

     163,586   
  

 

 

 

Liabilities assumed:

  

Deposits

     161,231   
  

 

 

 

Total liabilities assumed

     161,231   
  

 

 

 

Total net assets acquired

     2,355   
  

 

 

 

Goodwill recognized

   $ 849   
  

 

 

 

Also impacting the Company’s results of operations for the three months ended June 30, 2016 is the impact of the sale, on March 31, 2016, of twenty-seven nonperforming loans, nine substandard performing loans, and three purchased credit impaired loans with total recorded book value of approximately $24,810,000, and the purchase, on May 19, 2016 of seven performing multi-family commercial real estate loans valued at $22,503,000.

Loans acquired through purchase, or acquisition of other banks, are classified by the Company as Purchased Not Credit Impaired (PNCI), Purchased Credit Impaired – cash basis (PCI – cash basis), or Purchased Credit Impaired – other (PCI – other). Loans not acquired in an acquisition or otherwise “purchased” are classified as “originated”. Often, such purchased loans are purchased at a discount to face value, and part of this discount is accreted into


(added to) interest income over the remaining life of the loan. A loans may also be purchased at a premium to face value, in which case, the premium is amortized into (subtracted from) interest income over the remaining life of the loan. Generally, as time goes on, the effects of loan discount accretion and loan premium amortization decrease as the purchased loans mature or pay off early. Upon the early pay off of a loan, any remaining (unaccreted) discount or (unamortized) premium is immediately taken into interest income; and as loan payoffs may vary significantly from quarter to quarter, so may the impact of discount accretion and premium amortization on interest income. Further details regarding interest income from loans, including fair value discount accretion, may be found under the heading “Supplemental Loan Interest Income Data” in the Consolidated Financial Data table at the end of this press release.

The Company’s primary source of revenue is net interest income, or the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities. Following is a summary of the components of net interest income for the periods indicated (dollars in thousands):

 

     Three months ended  
     June 30,  
     2016     2015  

Interest income

   $ 42,590      $ 39,867   

Interest expense

     (1,430     (1,346

FTE adjustment

     585        194   
  

 

 

   

 

 

 

Net interest income (FTE)

   $ 41,745      $ 38,715   
  

 

 

   

 

 

 

Net interest margin (FTE)

     4.13     4.35
  

 

 

   

 

 

 

Purchased loan discount accretion

   $ 2,300      $ 2,133   

Effect of purchased loan discount accretion on net interest margin (FTE)

     0.23     0.24

Net interest income (FTE) during the three months ended June 30, 2016 increased $3,030,000 (7.8%) from the same period in 2015 to $41,745,000. The increase in net interest income (FTE) was primarily due to a $223,910,000 (9.5%) increase in the average balance of loans to $2,579,774,000, and a $147,414,000 (13.9%) increase in the average balance of investments to $1,211,556,000 that were partially offset by a 12 basis point decrease in the average yield on loans from 5.44% during the three months ended June 30, 2015 to 5.32% during the three months ended June 30, 2016, and an 16 basis point decrease in the average yield on investments from 2.97% during the three months ended June 30, 2015 to 2.81% during the three months ended June 30, 2016. The decrease in average loan yields is primarily due to declines in market yields on new and renewed loans compared to yields on repricing, maturing, and paid off loans. The decrease in average investment yields is primarily due to declines in market yields on new investments compared to yields on existing investments, and to recent declines in mortgage rates that lead to an increase in mortgage refinancing activity that in turn lead to faster estimated mortgage prepayment speeds and an accelerated level of interest income-reducing premium amortization on existing mortgage backed investment securities. The increases in average loan and investment balances added $3,045,000 and $1,457,000, respectively, to net interest income (FTE) while the decreases in average loan and investment yields reduced net interest income (FTE) by $726,000 and $850,000, respectively, when compared to the year-ago quarter. Included in interest income during the three months ended June 30, 2015 was a special cash dividend of $626,000 from the Company’s investment in Federal Home Loan Bank stock, and $2,133,000 of discount accretion from purchased loans compared to $2,300,000 of discount accretion from purchased loans during the three months ended June 30, 2016. For more information related to loan interest income, including loan purchase discount accretion, see the Supplemental Loan Interest Income Data in the tables at the end of this announcement.


The following table shows the components of net interest income and net interest margin on a fully tax-equivalent (FTE) basis for the periods indicated:

ANALYSIS OF CHANGE IN NET INTEREST MARGIN ON EARNING ASSETS

 

    (unaudited, dollars in thousands)                    
    Three Months Ended
June 30, 2016
    Three Months Ended
March 31, 2016
    Three Months Ended
June 30, 2015
 
    Average
Balance
    Income/
Expense
    Yield/
Rate
    Average
Balance
    Income/
Expense
    Yield/
Rate
    Average
Balance
    Income/
Expense
    Yield/
Rate
 

Assets

                 

Earning assets

                 

Loans

  $ 2,579,774      $ 34,338        5.32   $ 2,537,574      $ 34,738        5.48   $ 2,355,864      $ 32,019        5.44

Investments - taxable

    1,085,230        6,945        2.56     1,068,018        6,920        2.59     1,020,806        7,380        2.89

Investments - nontaxable

    126,326        1,560        4.94     116,088        1,435        4.94     43,336        518        4.78

Cash at Federal Reserve and other banks

    247,398        332        0.54     155,106        239        0.62     143,919        144        0.40
 

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

Total earning assets

    4,038,728        43,175        4.28     3,876,786        43,332        4.47     3,563,925        40,061        4.50
   

 

 

       

 

 

       

 

 

   

Other assets, net

    349,222            335,602            330,271       
 

 

 

       

 

 

       

 

 

     

Total assets

  $ 4,387,950          $ 4,212,388          $ 3,894,196       
 

 

 

       

 

 

       

 

 

     

Liabilities and shareholders’ equity

                 

Interest-bearing

                 

Demand deposits

  $ 886,417        120        0.05   $ 846,189        116        0.05   $ 796,958        116        0.06

Savings deposits

    1,354,846        423        0.12     1,274,868        397        0.12     1,165,530        362        0.12

Time deposits

    350,215        338        0.39     340,847        342        0.40     336,212        376        0.45

Other borrowings

    19,152        3        0.06     18,264        2        0.04     7,894        1        0.06

Trust preferred securities

    56,544        546        3.86     56,494        535        3.79     56,344        491        3.49
 

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

Total interest-bearing liabilities

    2,667,174        1,430        0.21     2,536,662        1,392        0.22     2,362,938        1,346        0.23
 

 

 

   

 

 

       

 

 

       

 

 

   

Noninterest-bearing deposits

    1,186,958            1,154,714            1,049,174       

Other liabilities

    62,456            59,492            51,483       

Shareholders’ equity

    471,362            461,520            430,601       
 

 

 

       

 

 

       

 

 

     

Total liabilities and shareholders’ equity

  $ 4,387,950          $ 4,212,388          $ 3,894,196       
 

 

 

       

 

 

       

 

 

     

Net interest rate spread

        4.07         4.25         4.27

Net interest income/net interest margin (FTE)

      41,745        4.13       41,940        4.33       38,715        4.35
   

 

 

       

 

 

       

 

 

   

FTE adjustment

      (585         (538         (194  
   

 

 

       

 

 

       

 

 

   

Net interest income (not FTE)

    $ 41,160          $ 41,402          $ 38,521     
   

 

 

       

 

 

       

 

 

   


The Company recorded a reversal of provision for loan losses of $773,000 during the three months ended June 30, 2016 compared to a reversal of provision for loan losses of $633,000 during the three months ended June 30, 2015. The $773,000 reversal of provision for loan losses during the three months ended June 30, 2016 was due to a $879,000 decrease in the required allowance for loan losses from $36,388,000 at March 31, 2016 to $35,509,000 at June 30, 2016 that was partially offset by net loan charge offs of $106,000. The decrease in the required allowance for loan losses from March 31, 2016 to June 30, 2016 was primarily due to pay downs on certain nonperforming loans that had significant loss allowances assigned to them, and are now no longer required or are significantly reduced; that was partially offset by a $112,083,000 increase in loan balances from $2,541,547,000 at March 31, 2016 to $2,653,630,000 at June 30, 2016. During the three months ended June 30, 2016 nonperforming loans decreased $4,057,000 (16.9%) to $19,977,000, and represented a decrease from 1.47% of loans outstanding as of December 31, 2015, and 0.95% of loans outstanding at March 31, 2016, to 0.75% of loans outstanding as of June 30, 2016. The decrease in nonperforming loans was primarily due to the sale of nonperforming loans during the three months ended March 31, 2016, and the pay down of nonperforming loans during the three months ended June 30, 2016.

The following table presents the key components of noninterest income for the periods indicated:

 

     Three months ended
June 30,
               
(dollars in thousands)    2016      2015      $ Change      % Change  

Service charges on deposit accounts

   $ 3,543       $ 3,637       ($ 94      (2.6 %) 

ATM fees and interchange

     3,892         3,383         509         15.0

Other service fees

     849         779         70         9.0

Mortgage banking service fees

     516         528         (12      (2.3 %) 

Change in value of mortgage servicing rights

     (701      521         (1,222      (234.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

 

Total service charges and fees

     8,099         8,848         (749      (8.5 %) 
  

 

 

    

 

 

    

 

 

    

 

 

 

Gain on sale of loans

     889         837         52         6.2

Commission on NDIP

     611         784         (173      (22.1 %) 

Increase in cash value of life insurance

     681         675         6         0.9

Change in indemnification asset

     (149      (57      (92      161.4

Gain on sale of foreclosed assets

     57         115         (58      (50.4 %) 

Other noninterest income

     1,057         878         179         20.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other noninterest income

     3,146         3,232         (86      (2.7 %) 
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest income

   $ 11,245       $ 12,080       ($ 835      (6.9 %) 
  

 

 

    

 

 

    

 

 

    

 

 

 

Noninterest income decreased $835,000 (6.9%) to $11,245,000 during the three months ended June 30, 2016 compared to the three months ended June 30, 2015. The decrease in noninterest income was primarily due to a $1,222,000 decrease in change in value of mortgage servicing rights (MSRs) to a negative $701,000 from a positive $521,000 in the year-ago quarter. A decrease in interest rates during the three months ended June 30, 2016 resulted in an increase in estimated prepayment speeds of serviced loans, that in turn resulted in a decrease in expected servicing cash flows, and thus, a lower value of such servicing rights. In the year-ago quarter, an increase in interest rates resulted in a decrease in estimated prepayment speeds of serviced loans that in turn resulted in an increase in expected servicing cash flows, and thus, a higher value of such servicing rights. Partially offsetting the decrease in change in value of mortgage servicing rights was a $509,000 (15.0%) increase in ATM fees and interchange revenue. The increase in ATM fees and interchange revenue was primarily due to the Company’s increased focus in this area, including the introduction of new services in this area during the quarter ended March 31, 2016. Other noninterest interest income increased $179,000 (20.4%) to $1,057,000 due to life insurance death benefits in excess of cash value of $238,000 that was partially offset by decreases in other items in this category during the three months ended June 30, 2016. The changes in noninterest income include the effects from the operation of three branches, including $161,231,000 of deposits, acquired from Bank of America on March 18, 2016.


The following table presents the key components of the Company’s noninterest expense for the periods indicated:

 

     Three months ended
June 30,
               
(dollars in thousands)    2016      2015      $ Change      % Change  

Base salaries, overtime and temporary help, net of deferred loan orgination costs

   $ 12,968       $ 11,502       $ 1,466         12.7

Commissions and incentives

     2,471         1,390         1,081         77.8

Employee benefits

     4,606         4,350         256         5.9
  

 

 

    

 

 

    

 

 

    

 

 

 

Total salaries and benefits expense

     20,045         17,242         2,803         16.3
  

 

 

    

 

 

    

 

 

    

 

 

 

Occupancy

     2,529         2,541         (12      (0.5 %) 

Equipment

     1,844         1,527         317         20.8

Change in reserve for unfunded commitments

     408         110         298         270.9

Data processing and software

     2,355         1,834         521         28.4

Telecommunications

     698         785         (87      (11.1 %) 

ATM network charges

     1,002         985         17         1.7

Professional fees

     1,356         1,035         321         31.0

Advertising and marketing

     1,077         1,002         75         7.5

Postage

     342         330         12         3.6

Courier service

     265         253         12         4.7

Intangible amortization

     359         289         70         24.2

Operational losses

     345         149         196         131.5

Provision for foreclosed asset losses

     42         174         (132      (75.9 %) 

Foreclosed asset expense

     114         102         12         11.8

Assessments

     578         694         (116      (16.7 %) 

Merger and acquisition expense

     162         —           162      

Legal settlement

     1,450         —           1,450      

Miscellaneous other expense

     3,296         3,384         (88      (2.6 %) 
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other noninterest expense

     18,222         15,194         3,028         19.9
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest expense

   $ 38,267       $ 32,436       $ 5,831         18.0
  

 

 

    

 

 

    

 

 

    

 

 

 

Average full time equivalent employees

     1,001         944         57         6.0

Salary and benefit expenses increased $2,803,000 (16.3%) to $20,045,000 during the three months ended June 30, 2016 compared to $17,242,000 during the three months ended June 30, 2015. Base salaries, overtime and temporary help, net of deferred loan origination costs increased $1,466,000 (12.7%) to $12,968,000 of which base salaries and overtime, net of deferred loan origination costs increased $1,276,000 (11.1%) to $12,774,000 primarily due to annual merit increases, and an increase in average full-time equivalent employees of 57 (6.0%) to 1,001 for the three months ended June 30, 2016. Temporary help expense increased $189,000 to $194,000 during the three months ended June 30, 2016. The increase in temporary help was primarily due to the use of temporary help in the Company’s customer service call center during the three months ended June 30, 2016. Incentive compensation increased 1,081,000 (77.8%) to $2,471,000 during the three months ended June 30, 2016. All categories of incentive compensation expense were higher than the year-ago quarter except commission expense related to the sale of nondeposit investment products. The increases in the other categories of incentive compensation, compared to the year-ago quarter, were primarily due to increased loan production and other performance measures to which incentive compensation is tied compared to such measures in the year-ago quarter. Benefits & other compensation expense increased 256,000 (5.9%) to $4,606,000 during the three months ended June 30, 2016 primarily due to the increases in average full-time equivalent employees and salaries expense, and their effects on group insurance and employer payroll tax expenses.

Other noninterest expense increased $3,028,000 (19.9%) to $18,222,000 during the three months ended June 30, 2016 compared to the three months ended June 30, 2015. Included in other noninterest expense for the three months ended June 30, 2016 was the legal settlement expense of $1,450,000 as described above. Also contributing to the increase in other noninterest expense during the three months ended June 30, 2016 compared to the three months ended June 30, 2015 were a $521,000 (28.4%) increase in data processing and software expense, a


$321,000 (31.0%) increase in professional fees, a $317,000 (20.8%) increase in equipment expense, and a $298,000 (271%) increase in provision for losses on unfunded commitments. The increase in data processing and software expense was primarily due to increased use of outside data processing services. The increase in professional fees was primarily due to increased consulting expense. The increase in equipment expense was primarily due to increase maintenance and repair expense associated with facilities maintenance. The increase in provision for losses on unfunded commitments was primarily due to a larger increase in unfunded construction loan commitments from March 31, 2016 to June 30, 2016 than from March 31, 2015 to June 30, 2015. Merger related expenses during the three months ended June 30, 2016 were $162,000, and consisted of consulting expenses related to the acquisition of three bank branches from B of A on March 18, 2016. There were no merger related expenses during the three months ended June 30, 2015.

Richard Smith, President and CEO of the Company commented, “While net income was negatively affected by recognition of legal expenses related to previously disclosed pending litigation, changes in mortgage servicing income due to lower interest rates, expenses related to core systems conversions and expenses related to our acquisition of three Bank of America branches, we experienced many positives from the quarter. Ending year over year balances were strong positives for the quarter. Total assets increased by 11.8% from a June 30, 2015 to June 30, 2016. Total loans increased year over year by over 10.9%. Loan quality also improved as nonperforming loans decreased from $39,880,000 on June 30, 2015 to $19,997,000 on June 30, 2016. Bank deposits, including deposits from the Bank of America branch acquisition, increased year over year by 12%.

Smith added, “We continue to move forward with our ambitious technology plans to upgrade our on-line products and core processing systems to better serve our customers. Completion of these projects is expected in the fall of 2016. This investment into new computer solutions will improve operational efficiencies and provide customers with added convenience and improved self-service banking options.”

In addition to the historical information contained herein, this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to various uncertainties and risks that could affect their outcome. The Company’s actual results could differ materially. Factors that could cause or contribute to such differences include, but are not limited to, variances in the actual versus projected growth in assets, return on assets, interest rate fluctuations, economic conditions in the Company’s primary market area, demand for loans, regulatory and accounting changes, loan losses, expenses, rates charged on loans and earned on securities investments, rates paid on deposits, competitive effects, fee and other noninterest income earned, the outcome of litigation, as well as other factors detailed in the Company’s reports filed with the Securities and Exchange Commission which are incorporated herein by reference, including the Form 10-K for the year ended December 31, 2015. These reports and this entire press release should be read to put such forward-looking statements in context and to gain a more complete understanding of the uncertainties and risks involved in the Company’s business. The Company does not intend to update any of the forward-looking statements after the date of this release.

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 in communities throughout Northern and Central 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 ATM, online and mobile banking access. Brokerage services are provided by the Bank’s investment services through affiliation with Raymond James Financial Services, Inc. Visit www.TriCountiesBank.com to learn more.


TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands, except share data)

 

     Three months ended  
     June 30,
2016
    March 31,
2016
    December 31,
2015
    September 30,
2015
    June 30,
2015
 

Statement of Income Data

          

Interest income

   $ 42,590      $ 42,794      $ 42,490      $ 41,332      $ 39,867   

Interest expense

     1,430        1,392        1,349        1,339        1,346   

Net interest income

     41,160        41,402        41,141        39,993        38,521   

(Benefit from reversal of) provision for loan losses

     (773     209        (908     (866     (633

Noninterest income:

          

Service charges and fees

     8,099        7,305        7,935        7,694        8,848   

Other income

     3,146        2,485        3,510        3,948        3,232   

Total noninterest income

     11,245        9,790        11,445        11,642        12,080   

Noninterest expense:

          

Base salaries net of deferred loan origination costs

     12,968        12,708        12,014        11,562        11,502   

Incentive compensation expense

     2,471        1,739        2,304        1,674        1,390   

Employee benefits and other compensation expense

     4,606        4,818        4,212        4,297        4,350   

Total salaries and benefits expense

     20,045        19,265        18,530        17,533        17,242   

Other noninterest expense

     18,222        14,486        16,154        13,906        15,194   

Total noninterest expense

     38,267        33,751        34,684        31,439        32,436   

Income before taxes

     14,911        17,232        18,810        21,062        18,798   

Net income

   $ 9,405      $ 10,674      $ 11,422      $ 12,694      $ 11,366   

Share Data

          

Basic earnings per share

   $ 0.41      $ 0.47      $ 0.50      $ 0.56      $ 0.50   

Diluted earnings per share

   $ 0.41      $ 0.46      $ 0.50      $ 0.55      $ 0.49   

Book value per common share

   $ 20.76      $ 20.34      $ 19.85      $ 19.48      $ 18.95   

Tangible book value per common share

   $ 17.63      $ 17.18      $ 16.81      $ 16.42      $ 15.88   

Shares outstanding

     22,822,325        22,785,173        22,775,173        22,764,295        22,749,523   

Weighted average shares

     22,802,653        22,782,865        22,769,793        22,757,453        22,744,926   

Weighted average diluted shares

     23,070,151        23,046,165        23,055,900        23,005,980        22,980,033   

Credit Quality

          

Nonperforming originated loans

   $ 10,022      $ 12,660      $ 22,824      $ 24,052      $ 23,812   

Total nonperforming loans

     19,977        24,034        37,119        38,898        39,880   

Foreclosed assets, net of allowance

     3,842        4,471        5,369        5,285        5,393   

Loans charged-off

     641        1,289        380        687        514   

Loans recovered

   $ 536      $ 1,457      $ 781      $ 2,616      $ 547   

Selected Financial Ratios

          

Return on average total assets

     0.86     1.01     1.11     1.28     1.17

Return on average equity

     7.98     9.25     10.14     11.56     10.56

Average yield on loans

     5.32     5.48     5.60     5.57     5.44

Average yield on interest-earning assets

     4.28     4.47     4.53     4.60     4.50

Average rate on interest-bearing liabilities

     0.21     0.22     0.22     0.23     0.23

Net interest margin (fully tax-equivalent)

     4.13     4.33     4.39     4.46     4.35

Supplemental Loan Interest Income Data:

          

Discount accretion PCI - cash basis loans

   $ 426      $ 269      $ 302      $ 445      $ 404   

Discount accretion PCI - other loans

     415        (45     1,392        1,090        907   

Discount accretion PNCI loans

     1,459        868        573        1,590        822   

All other loan interest income

     32,038        33,646        32,571        30,689        29,886   

Total loan interest income

   $ 34,338      $ 34,738      $ 34,838      $ 33,814      $ 32,019   


TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands)

 

     Three months ended  
     June 30, 2016     March 31,
2016
    December 31,
2015
    September
30, 2015
    June 30, 2015  

Balance Sheet Data

          

Cash and due from banks

   $ 216,786      $ 388,878      $ 303,461      $ 209,298      $ 169,503   

Securities, available for sale

     529,017        477,454        404,885        329,361        284,430   

Securities, held to maturity

     674,412        705,133        726,530        751,051        776,283   

Restricted equity securities

     16,956        16,956        16,956        16,956        16,956   

Loans held for sale

     2,904        2,240        1,873        5,152        4,630   

Loans:

          

Commercial loans

     209,840        197,695        194,913        199,330        195,791   

Consumer loans

     381,114        401,076        395,283        403,081        411,788   

Real estate mortgage loans

     1,913,024        1,813,933        1,811,832        1,757,082        1,686,567   

Real estate construction loans

     149,652        128,843        120,909        110,073        99,616   

Total loans, gross

     2,653,630        2,541,547        2,522,937        2,469,566        2,393,762   

Allowance for loan losses

     (35,509     (36,388     (36,011     (36,518     (35,455

Foreclosed assets

     3,842        4,471        5,369        5,285        5,393   

Premises and equipment

     51,728        51,522        43,811        42,334        42,056   

Cash value of life insurance

     94,572        95,256        94,560        94,458        93,687   

Goodwill

     64,311        64,311        63,462        63,462        63,462   

Other intangible assets

     7,282        7,641        5,894        6,184        6,473   

Mortgage servicing rights

     6,720        7,140        7,618        7,467        7,814   

Accrued interest receivable

     11,602        11,075        10,786        10,212        10,064   

Other assets

     54,239        57,720        48,591        47,360        54,797   

Total assets

   $ 4,352,492        4,394,956        4,220,722        4,021,628        3,893,855   

Deposits:

          

Noninterest-bearing demand deposits

     1,181,702        1,178,001        1,155,695        1,100,607        1,060,650   

Interest-bearing demand deposits

     867,638        884,638        853,961        817,034        780,647   

Savings deposits

     1,346,269        1,368,644        1,281,540        1,187,238        1,179,836   

Time certificates

     345,787        353,757        340,070        352,993        320,549   

Total deposits

     3,741,396        3,785,040        3,631,266        3,457,872        3,341,682   

Accrued interest payable

     727        751        774        795        797   

Reserve for unfunded commitments

     2,883        2,475        2,475        2,085        2,125   

Other liabilities

     57,587        68,064        65,293        53,681        55,003   

Other borrowings

     19,464        18,671        12,328        6,859        6,735   

Junior subordinated debt

     56,567        56,519        56,470        56,991        56,369   

Total liabilities

     3,878,624        3,931,520        3,768,606        3,578,283        3,462,711   

Total shareholders’ equity

     473,868        463,436        452,116        443,345        431,144   

Accumulated other comprehensive gain (loss)

     6,073        1,772        (1,778     (2,298     (4,726

Average loans

     2,579,774        2,537,574        2,489,406        2,427,670        2,355,864   

Average interest-earning assets

     4,038,728        3,876,786        3,777,144        3,616,912        3,563,925   

Average total assets

     4,387,950        4,212,388        4,115,369        3,953,292        3,894,196   

Average deposits

     3,778,436        3,616,618        3,543,423        3,390,229        3,347,874   

Average total equity

   $ 471,362      $ 461,520      $ 450,413      $ 439,360      $ 430,601   

Total risk based capital ratio

     14.7     15.1     15.1     15.2     15.2

Tier 1 capital ratio

     13.6     13.9     13.8     13.9     13.9

Tier 1 common equity ratio

     12.0     12.3     12.2     12.3     12.2

Tier 1 leverage ratio

     10.4     10.7     10.8     11.0     10.9

Tangible capital ratio

     9.4     9.1     9.2     9.5     9.4

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