Note 24 – TriCo Bancshares Condensed Financial Statements (Parent Only)

Condensed Balance Sheets


	December 31, 2018			December 31, 2017
	(In thousands)
Assets
Cash and cash equivalents	$	2,374		$	3,924
Investment in Tri Counties Bank		880,907			557,538
Other assets		1,723			1,721

Total assets	$	885,004		$	563,183

Liabilities and shareholders’ equity
Other liabilities	$	589		$	517
Junior subordinated debt		57,042			56,858

Total liabilities		57,631			57,375

Shareholders’ equity:
Preferred stock, no par value: 1,000,000 shares authorized, zero issued and outstanding at December 31, 2018 and 2017		—			—
Common stock, no par value: authorized 50,000,000 shares; issued and outstanding 30,417,223 and 22,955,963 shares at December 31, 2018 and 2017, respectively		541,762			255,836
Retained earnings		303,490			255,200
Accumulated other comprehensive loss, net		(17,879	)		(5,228	)

Total shareholders’ equity		827,373			505,808

Total liabilities and shareholders’ equity	$	885,004		$	563,183

Condensed Statements of Income


	Year ended December 31,
	2018			2017			2016
				(In thousands)
Interest expense	$	(3,131	)	$	(2,535	)	$	(2,229	)
Administration expense		(1,489	)		(915	)		(725	)

Loss before equity in net income of Tri Counties Bank		(4,620	)		(3,450	)		(2,954	)
Equity in net income of Tri Counties Bank:
Distributed		26,432			19,236			16,758
Undistributed		45,315			23,359			29,764
Income tax benefit		1,193			1,409			1,243

Net income	$	68,320		$	40,554		$	44,811

Condensed Statements of Comprehensive Income


	Year ended December 31,
	2018			2017			2016
				(In thousands)
Net income	$	68,320		$	40,554		$	44,811
Other comprehensive income (loss), net of tax:
Increase (decrease) in unrealized gains on available for sale securities arising during the period		(12,434	)		3,165			(6,384	)
Change in minimum pension liability		388			(370	)		592
Change in joint beneficiary agreement liablity		426			(110	)		(343	)

Other comprehensive income (loss)		(11,620	)		2,685			(6,135	)

Comprehensive income	$	56,700		$	43,239		$	38,676

Condensed Statements of Cash Flows


	Year ended December 31,
	2018			2017			2016
				(In thousands)
Operating activities:
Net income	$	68,320		$	40,554		$	44,811
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed equity in earnings of Tri Counties Bank		(45,315	)		(23,359	)		(29,764	)
Equity compensation vesting expense		1,462			1,586			1,467
Equity compensation tax effect		—			—			(155	)
Net change in other assets and liabilities		(4,983	)		(1,295	)		(1,210	)

Net cash provided by operating activities		19,484			17,486			15,149
Investing activities: None
Financing activities:
Issuance of common stock through option exercise		218			396			518
Equity compensation tax effect		—			—			155
Repurchase of common stock		(2,483	)		(1,629	)		(1,890	)
Cash dividends paid — common		(18,769	)		(15,131	)		(13,695	)

Net cash used for financing activities		(21,034	)		(16,364	)		(14,912	)

Net change in cash and cash equivalents		(1,550	)		1,122			237

Cash and cash equivalents at beginning of year		3,924			2,802			2,565

Cash and cash equivalents at end of year	$	2,374		$	3,924		$	2,802