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TriCo Bancshares Announces First Quarter 2023 Results

Notable Items for First Quarter 2023

  • Net income was $35.8 million compared to $36.3 million in the trailing quarter, and compared to $20.4 million in the same quarter of the prior year; Pre-tax pre-provision net revenue was $53.2 million compared to $55.3 million in the trailing quarter, and compared to $36.6 million in the same quarter of the prior year
  • Balance sheet flexibility anchored in readily accessible sources of liquidity including undrawn borrowing capacities, on-balance sheet cash and unpledged investment securities totaling in excess of $4.4 billion
  • Diversified and granular deposit base including approximately 250,000 accounts which are spread over the Northern two-thirds of California and having an average account size of just over $30,000
  • Credit quality remains strong and stable with non-performing assets representing less than 0.2% of total assets and an allowance for credit losses of 1.69% of total loans or 686% of non-performing loans
  • Average yields on earning assets were 4.64%, an increase of 12 basis points over the 4.52% in the trailing quarter; net interest margin was 4.21%, a change of 13 basis points from 4.34% in the trailing quarter
  • The average cost of total deposits were 0.25% for the quarter as compared to 0.10% in the trailing quarter and 0.04% in the same quarter of the prior year and, as a result, the Company's total cost of deposits have increased 21 basis points since FOMC rate actions began, which translates to a cycle to date deposit beta of 4.42%
  • Deposit balances declined by $303.1 million or 3.64% versus the prior quarter and the Bank did not utilize brokered deposits or FRB borrowing facilities

"Despite the turmoil and challenges currently facing the community banking industry we are thankful to have built a franchise that is anchored by a diverse customer base that continues to demonstrate their trust in us by allowing us the privilege to deliver Services with Solutions," explained Rick Smith, President and Chief Executive Officer. Peter Wiese, EVP and Chief Financial Officer added, "We believe that TriCo's performance will be both positive and differentiated amongst our peers and competitors through a variety of possible economic scenarios."

TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank, today announced net income of $35.8 million for the quarter ended March 31, 2023, compared to $36.3 million during the trailing quarter ended December 31, 2022, and $20.4 million during the quarter ended March 31, 2022. Diluted earnings per share were $1.07 for the first quarter of 2023, compared to $1.09 for the fourth quarter of 2022 and $0.67 during the first quarter of 2022.

Financial Highlights

Performance highlights for the Company as of or for the three months ended March 31, 2023, included the following:

  • For the quarter ended March 31, 2023, the Company’s return on average assets was 1.47%, while the return on average equity was 13.36%.
  • Deposit balances for the quarter ended March 31, 2023, decreased by $303.1 million as compared to December 31, 2022. The deposit contraction during the quarter resulted in the loan to deposit ratio increasing to 80.0% as of March 31, 2023, as compared to 77.4% as of the trailing quarter.
  • The efficiency ratio was 50.3% for the three months ended March 31, 2023, as compared to 51.8% for the trailing quarter.
  • The provision for credit losses for loans and debt securities was approximately $4.2 million during the quarter ended March 31, 2023, as compared to a provision for credit losses of $4.2 million during the trailing quarter ended December 31, 2022, and a provision for credit losses of $8.3 million for the three-month period ended March 31, 2022.
  • The allowance for credit losses to total loans was 1.69% as of March 31, 2023, compared to 1.64% as of the trailing quarter end, and 1.64% as of March 31, 2022. Non-performing assets to total assets were 0.20% at March 31, 2023, as compared to 0.25% as of December 31, 2022, and 0.17% at March 31, 2022.

Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Quarterly Report on Form 10-Q for the period ended March 31, 2023, 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.

Summary Results

The following is a summary of the components of the Company’s operating results and performance ratios for the periods indicated:

 

 

Three months ended

 

 

 

 

March 31,

 

December 31,

 

 

(dollars and shares in thousands, except per share data)

 

2023

 

2022

 

$ Change

 

% Change

Net interest income

 

$

93,336

 

 

$

98,900

 

 

$

(5,564

)

 

(5.6

)%

Provision for credit losses

 

 

(4,195

)

 

 

(4,245

)

 

 

50

 

 

(1.2

)%

Noninterest income

 

 

13,635

 

 

 

15,880

 

 

 

(2,245

)

 

(14.1

)%

Noninterest expense

 

 

(53,794

)

 

 

(59,469

)

 

 

5,675

 

 

(9.5

)%

Provision for income taxes

 

 

(13,149

)

 

 

(14,723

)

 

 

1,574

 

 

(10.7

)%

Net income

 

$

35,833

 

 

$

36,343

 

 

$

(510

)

 

(1.4

)%

Diluted earnings per share

 

$

1.07

 

 

$

1.09

 

 

$

(0.02

)

 

(1.8

)%

Dividends per share

 

$

0.30

 

 

$

0.30

 

 

$

 

 

%

Average common shares

 

 

33,296

 

 

 

33,330

 

 

 

(34

)

 

(0.1

)%

Average diluted common shares

 

 

33,438

 

 

 

33,467

 

 

 

(29

)

 

(0.1

)%

Return on average total assets

 

 

1.47

%

 

 

1.45

%

 

 

 

 

Return on average equity

 

 

13.36

%

 

 

14.19

%

 

 

 

 

Efficiency ratio

 

 

50.29

%

 

 

51.81

%

 

 

 

 

 

 

Three months ended

March 31,

 

 

 

 

(dollars and shares in thousands, except per share data)

 

2023

 

2022

 

$ Change

 

% Change

Net interest income

 

$

93,336

 

 

$

67,924

 

 

$

25,412

 

 

37.4

%

Provision for credit losses

 

 

(4,195

)

 

 

(8,330

)

 

 

4,135

 

 

(49.6

)%

Noninterest income

 

 

13,635

 

 

 

15,096

 

 

 

(1,461

)

 

(9.7

)%

Noninterest expense

 

 

(53,794

)

 

 

(46,447

)

 

 

(7,347

)

 

15.8

%

Provision for income taxes

 

 

(13,149

)

 

 

(7,869

)

 

 

(5,280

)

 

67.1

%

Net income

 

$

35,833

 

 

$

20,374

 

 

$

15,459

 

 

75.9

%

Diluted earnings per share

 

$

1.07

 

 

$

0.67

 

 

$

0.40

 

 

59.7

%

Dividends per share

 

$

0.30

 

 

$

0.25

 

 

$

0.05

 

 

20.0

%

Average common shares

 

 

33,296

 

 

 

30,050

 

 

 

3,246

 

 

10.8

%

Average diluted common shares

 

 

33,438

 

 

 

30,202

 

 

 

3,236

 

 

10.7

%

Return on average total assets

 

 

1.47

%

 

 

0.94

%

 

 

 

 

Return on average equity

 

 

13.36

%

 

 

8.19

%

 

 

 

 

Efficiency ratio

 

 

50.29

%

 

 

55.95

%

 

 

 

 

Balance Sheet

Total loans outstanding, excluding PPP, grew to $6.42 billion as of March 31, 2023, an increase of 10.8% over the prior twelve months, and is entirely related to organic loan growth. As compared to December 31, 2022, total loans outstanding declined by $28.0 million or 1.7%. Investments increased to $2.58 billion as of March 31, 2023, an increase of 0.3% over the prior year quarter end. Quarterly average earning assets to quarterly total average assets were 91.4% at March 31, 2023, as compared to 91.4% and 92.9% at December 31, 2022, and March 31, 2022, respectively. The loan to deposit ratio was 80.0% at March 31, 2023, as compared to 77.4% and 67.2% at December 31, 2022, and March 31, 2022, respectively. During the current quarter and throughout the 2022 year, the Company held no brokered deposits and relied solely on short-term borrowings to fund cash flow timing differences.

Total shareholders' equity increased by $43.8 million during the quarter ended March 31, 2023, as a result of an improvement in accumulated other comprehensive losses of $24.4 million and net income of $35.8 million, partially offset by cash dividend payments on common stock of approximately $9.9 million. As a result, the Company’s book value was $32.84 per share at March 31, 2023, as compared to $31.39 and $32.78 at December 31, 2022, and March 31, 2022, respectively. 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 $23.22 per share at March 31, 2023, as compared to $21.76 and $23.04 at December 31, 2022, and March 31, 2022, respectively.

Trailing Quarter Balance Sheet Change

Ending balances

 

March 31,

 

December 31,

 

 

 

Annualized

(dollars in thousands)

 

2023

 

2022

 

$ Change

% Change

Total assets

 

$

9,842,394

 

$

9,930,986

 

$

(88,592

)

 

(3.6

)%

Total loans

 

 

6,422,421

 

 

6,450,447

 

 

(28,026

)

 

(1.7

)

Total investments

 

 

2,577,769

 

 

2,633,269

 

 

(55,500

)

 

(8.4

)

Total deposits

 

 

8,025,865

 

 

8,329,013

 

 

(303,148

)

 

(14.6

)

Total other borrowings

 

$

434,140

 

$

264,605

 

$

169,535

 

 

256.3

%

Loans outstanding declined by $28.0 million or 1.7% on an annualized basis during the quarter ended March 31, 2023. During the quarter, loan originations/draws totaled approximately $357.0 million while payoffs/repayments of loans totaled $389.0 million, which compares to originations/draws and payoffs/repayments during the trailing quarter ended of $470.0 million and $343.0 million, respectively. While management believes the loan pipeline remains sufficient to support the Company's objectives, origination activity continues to moderate due to customer sensitivity from the rising interest rate environment and the Company's continued focus on disciplined underwriting. Investment security balances decreased $55.5 million or 8.4% on an annualized basis as the result of prepayments/maturities totaling approximating $65.8 million and proceeds from sale of $24.2 million, partially offset by increases in the market value of securities of $34.6 million. Management seeks to utilize excess cash flows from the investment security portfolio to support loan growth or reduce borrowings thus resulting in an improved mix of earning assets. Deposit balances decreased by $303.1 million or 14.6% annualized during the period. Cash flow needs were supported by net increases in short-term FHLB advances which totaled $434.1 million as of the quarter ended March 31, 2023.

Average Trailing Quarter Balance Sheet Change

Quarterly average balances for the period ended

 

March 31,

 

December 31,

 

 

 

Annualized

(dollars in thousands)

 

2023

 

2022

 

$ Change

 

% Change

Total assets

 

$

9,878,927

 

$

9,932,931

 

$

(54,004

)

 

(2.2

)%

Total loans

 

 

6,413,958

 

 

6,358,998

 

 

54,960

 

 

3.5

 

Total investments

 

 

2,587,285

 

 

2,624,062

 

 

(36,777

)

 

(5.6

)

Total deposits

 

 

8,218,576

 

 

8,545,172

 

 

(326,596

)

 

(15.3

)

Total other borrowings

 

$

277,632

 

$

85,927

 

$

191,705

 

 

892.4

%

Year Over Year Balance Sheet Change

Ending balances

 

As of March 31,

 

 

 

 

(dollars in thousands)

 

2023

 

2022

 

$ Change

 

% Change

Total assets

 

$

9,842,394

 

$

10,118,328

 

$

(275,934

)

 

(2.7

)%

Total loans

 

 

6,422,421

 

 

5,851,975

 

 

570,446

 

 

9.7

 

Total loans, excluding PPP

 

 

6,420,903

 

 

5,795,370

 

 

625,533

 

 

10.8

 

Total investments

 

 

2,577,769

 

 

2,569,706

 

 

8,063

 

 

0.3

 

Total deposits

 

 

8,025,865

 

 

8,714,477

 

 

(688,612

)

 

(7.9

)

Total other borrowings

 

$

434,140

 

$

36,184

 

$

397,956

 

 

1,099.8

%

Non-PPP loan balances increased as a result of organic activities by approximately $625.5 million or 10.8% during the twelve-month period ending March 31, 2023. Over the same period deposit balances have declined by $688.6 million or 7.9%. The Company has offset these declines through the deployment of excess cash balances and proceeds from short-term FHLB borrowings. As of March 31, 2023, short-term borrowings from the FHLB totaled $394.1 million and had an interest rate of 5.11%.

Liquidity

The Company's primary sources of liquidity include the following for the periods indicated:

(dollars in thousands)

 

March 31, 2023

 

December 31, 2022

 

March 31, 2022

Borrowing capacity at correspondent banks and FRB

 

$

2,853,219

 

 

 

2,815,594

 

 

$

2,540,995

Less: borrowings outstanding

 

 

(394,095

)

 

 

(216,700

)

 

 

Unpledged available-for-sale (AFS) investment securities

 

 

1,883,353

 

 

 

1,990,451

 

 

 

2,036,202

Cash held or in transit with FRB

 

 

67,468

 

 

 

56,910

 

 

 

969,558

Total primary liquidity

 

$

4,409,945

 

 

$

4,862,738.3

 

 

$

5,546,755

At March 31, 2023, the Company's primary sources of liquidity represented 54.9% of total deposits and 190.7% of estimated total uninsured deposits, respectively. As a secondary source of liquidity, the Company's held-to-maturity investment securities had a fair value of $142.1 million, including approximately $9.9 million in net unrealized losses or 0.6% of after tax total shareholders' equity.

Net Interest Income and Net Interest Margin

During the twelve-month period ended March 31, 2023, the Federal Open Market Committee's (FOMC) actions have resulted in nine rate hike events for a cumulative increase in the Fed Funds Rate of 4.75%. During the same period the Company's yield on total loans (excluding PPP) increased 56 basis points to 5.21% for the three months ended March 31, 2023, from 4.65% for the three months ended March 31, 2022. Moreover, the tax equivalent yield on the Company's investment security portfolio increased by 1.34% to 3.23% during the twelve months ended March 31, 2023. The cost of total interest-bearing deposits and total interest-bearing liabilities increased by 37 basis points and 63 basis points respectively between the three-month periods ended March 31, 2023 and 2022. Since FOMC rate actions began, the Company's total cost of deposits has increased 21 basis points which translates to a cycle to date deposit beta of 4.42%.

The Company continues to manage its cost of deposits through the use of pricing strategies and delayed changes to the deposit rates offered to the general public. As of March 31, 2023, and December 31, 2022, total deposits priced utilizing these strategies totaled $731.9 million and $579.1 million, respectively, and carried weighted average rates of 2.68% and 1.64%, respectively.

The following is a summary of the components of net interest income for the periods indicated:

 

 

Three months ended

 

 

 

 

March 31,

 

December 31,

 

 

(dollars in thousands)

 

2023

 

2022

 

Change

 

% Change

Interest income

 

$

102,907

 

 

$

102,989

 

 

$

(82

)

 

(0.1

)%

Interest expense

 

 

(9,571

)

 

 

(4,089

)

 

 

(5,482

)

 

134.1

%

Fully tax-equivalent adjustment (FTE) (1)

 

 

392

 

 

 

440

 

 

 

(48

)

 

(10.9

)%

Net interest income (FTE)

 

$

93,728

 

 

$

99,340

 

 

$

(5,612

)

 

(5.6

)%

Net interest margin (FTE)

 

 

4.21

%

 

 

4.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans discount accretion, net:

 

 

 

 

 

 

 

 

Amount (included in interest income)

 

$

1,397

 

 

$

1,751

 

 

$

(354

)

 

(20.2

)%

Net interest margin less effect of acquired loan discount accretion(1)

 

 

4.15

%

 

 

4.27

%

 

 

(0.12

) %

 

 

PPP loans yield, net:

 

 

 

 

 

 

 

 

Amount (included in interest income)

 

$

5

 

 

$

16

 

 

$

(11

)

 

(68.8

)%

Net interest margin less effect of PPP loan yield (1)

 

 

4.21

%

 

 

4.34

%

 

 

(0.13

) %

 

 

Acquired loans discount accretion and PPP loan yield, net:

 

 

 

 

 

 

 

 

Amount (included in interest income)

 

$

1,402

 

 

$

1,767

 

 

$

(365

)

 

(20.7

)%

Net interest margin less effect of acquired loan discount accretion and PPP loan yield (1)

 

 

4.15

%

 

 

4.27

%

 

 

(0.12

) %

 

 

 

 

Three months ended

March 31,

 

 

 

 

(dollars in thousands)

 

2023

 

2022

 

Change

 

% Change

Interest income

 

$

102,907

 

 

$

69,195

 

 

$

33,712

 

 

48.7

%

Interest expense

 

 

(9,571

)

 

 

(1,271

)

 

 

(8,300

)

 

653.0

%

Fully tax-equivalent adjustment (FTE) (1)

 

 

392

 

 

 

283

 

 

 

109

 

 

38.5

%

Net interest income (FTE)

 

$

93,728

 

 

$

68,207

 

 

$

25,521

 

 

37.4

%

Net interest margin (FTE)

 

 

4.21

%

 

 

3.39

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans discount accretion, net:

 

 

 

 

 

 

 

 

Amount (included in interest income)

 

$

1,397

 

 

$

1,323

 

 

$

74

 

 

5.6

%

Net interest margin less effect of acquired loan discount accretion(1)

 

 

4.15

%

 

 

3.32

%

 

 

0.83

%

 

 

PPP loans yield, net:

 

 

 

 

 

 

 

 

Amount (included in interest income)

 

$

5

 

 

$

1,097

 

 

$

(1,092

)

 

(99.5

)%

Net interest margin less effect of PPP loan yield (1)

 

 

4.21

%

 

 

3.36

%

 

 

0.85

%

 

 

Acquired loans discount accretion and PPP loan yield, net:

 

 

 

 

 

 

 

 

Amount (included in interest income)

 

$

1,402

 

 

$

2,420

 

 

$

(1,018

)

 

(42.1

)%

Net interest margin less effect of acquired loan discount accretion and PPP loan yield (1)

 

 

4.15

%

 

 

3.29

%

 

 

0.86

%

 

 

(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.

Loans may be acquired at a premium or discount to par value, in which case, the premium is amortized (subtracted from) or the discount is accreted (added to) interest income over the remaining life of the loan. The dollar impact 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. As a result of the increase in interest rates, the prepayment rate of portfolio loans, inclusive of those acquired at a premium or discount, declined during 2023 as compared to 2022. During the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, purchased loan discount accretion was $1.4 million, $1.8 million, and $1.3 million, respectively.

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

ANALYSIS OF CHANGE IN NET INTEREST MARGIN ON EARNING ASSETS

(unaudited, dollars in thousands)

 

 

Three months ended

 

Three months ended

 

Three months ended

 

 

March 31, 2023

 

December 31, 2022

 

March 31, 2022

 

 

Average

Balance

 

Income/

Expense

 

Yield/

Rate

 

Average

Balance

 

Income/

Expense

 

Yield/

Rate

 

Average

Balance

 

Income/

Expense

 

Yield/

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, excluding PPP

 

$

6,412,386

 

$

82,410

 

5.21

%

 

$

6,357,250

 

$

81,740

 

5.10

%

 

$

4,937,865

 

$

56,648

 

4.65

%

PPP loans

 

 

1,572

 

 

5

 

1.29

%

 

 

1,748

 

 

16

 

3.63

%

 

 

50,695

 

 

1,097

 

8.78

%

Investments-taxable

 

 

2,398,235

 

 

18,916

 

3.20

%

 

 

2,414,236

 

 

18,804

 

3.09

%

 

 

2,313,204

 

 

10,223

 

1.79

%

Investments-nontaxable (1)

 

 

189,050

 

 

1,699

 

3.64

%

 

 

209,826

 

 

1,906

 

3.60

%

 

 

143,873

 

 

1,225

 

3.45

%

Total investments

 

 

2,587,285

 

 

20,615

 

3.23

%

 

 

2,624,062

 

 

20,710

 

3.13

%

 

 

2,457,077

 

 

11,448

 

1.89

%

Cash at Federal Reserve and other banks

 

 

26,818

 

 

269

 

4.07

%

 

 

93,390

 

 

963

 

4.09

%

 

 

707,563

 

 

285

 

0.16

%

Total earning assets

 

 

9,028,061

 

 

103,299

 

4.64

%

 

 

9,076,450

 

 

103,429

 

4.52

%

 

 

8,153,200

 

 

69,478

 

3.46

%

Other assets, net

 

 

850,866

 

 

 

 

 

 

856,481

 

 

 

 

 

 

625,056

 

 

 

 

Total assets

 

$

9,878,927

 

 

 

 

 

$

9,932,931

 

 

 

 

 

$

8,778,256

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

1,673,114

 

$

387

 

0.09

%

 

$

1,709,494

 

$

150

 

0.03

%

 

$

1,597,309

 

$

84

 

0.02

%

Savings deposits

 

 

2,898,463

 

 

4,154

 

0.58

%

 

 

2,921,935

 

 

1,815

 

0.25

%

 

 

2,571,023

 

 

327

 

0.05

%

Time deposits

 

 

274,805

 

 

604

 

0.89

%

 

 

251,218

 

 

205

 

0.32

%

 

 

301,499

 

 

268

 

0.36

%

Total interest-bearing deposits

 

 

4,846,382

 

 

5,145

 

0.43

%

 

 

4,882,647

 

 

2,170

 

0.18

%

 

 

4,469,831

 

 

679

 

0.06

%

Other borrowings

 

 

277,632

 

 

2,809

 

4.10

%

 

 

85,927

 

 

406

 

1.87

%

 

 

44,731

 

 

5

 

0.05

%

Junior subordinated debt

 

 

101,044

 

 

1,617

 

6.49

%

 

 

101,030

 

 

1,513

 

5.94

%

 

 

60,971

 

 

587

 

3.90

%

Total interest-bearing liabilities

 

 

5,225,058

 

 

9,571

 

0.74

%

 

 

5,069,604

 

 

4,089

 

0.32

%

 

 

4,575,533

 

 

1,271

 

0.11

%

Noninterest-bearing deposits

 

 

3,372,194

 

 

 

 

 

 

3,662,525

 

 

 

 

 

 

3,052,099

 

 

 

 

Other liabilities

 

 

194,202

 

 

 

 

 

 

184,334

 

 

 

 

 

 

141,400

 

 

 

 

Shareholders’ equity

 

 

1,087,473

 

 

 

 

 

 

1,016,468

 

 

 

 

 

 

1,009,224

 

 

 

 

Total liabilities and shareholders’ equity

 

$

9,878,927

 

 

 

 

 

$

9,932,931

 

 

 

 

 

$

8,778,256

 

 

 

 

Net interest rate spread (1) (2)

 

 

 

 

 

3.90

%

 

 

 

 

 

4.20

%

 

 

 

 

 

3.35

%

Net interest income and margin (1) (3)

 

 

 

$

93,728

 

4.21

%

 

 

 

$

99,340

 

4.34

%

 

 

 

$

68,207

 

3.39

%

(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 March 31, 2023, decreased $5.6 million or 5.6% to $93.7 million compared to $99.3 million during the three months ended December 31, 2022. In addition, net interest margin declined 13 basis points to 4.21%, compared to the trailing quarter. The decrease in net interest income is primarily attributed to an additional $3.0 million in deposit interest expense and $2.4 million in additional interest expense on other borrowings, both due to increases in interest rates as compared to the trailing quarter, respectively. Total interest income was effectively unchanged as compared to the trailing quarter, down $0.1 million or 0.1%.

As compared to the same quarter in the prior year, average loan yields, excluding PPP, increased 56 basis points from 4.65% during the three months ended March 31, 2022, to 5.21% during the three months ended March 31, 2023. The accretion of discounts from acquired loans added 9 and 7 basis points to loan yields during the quarters ended March 31, 2023 and March 31, 2022, respectively.

The rates paid on interest bearing deposits increased by 25 basis points during the quarter ended March 31, 2023, compared to the trailing quarter. The cost of interest-bearing deposits increased by 37 basis points between the quarter ended March 31, 2023, and the same quarter of the prior year. In addition, the level of noninterest-bearing deposits decreased by $290.3 million quarter over quarter but remains $320.1 million above quarter ended March 31, 2022. As of March 31, 2023, the ratio of average total noninterest-bearing deposits to total average deposits was 41.0%, as compared to 42.9% and 40.6% at December 31, 2022 and March 31, 2022, respectively.

Interest Rates and Earning Asset Composition

During the quarter ended March 31, 2023, market interest rates, including many rates that serve as reference indices for variable rate loans and investment securities continued to increase. As noted above, these rate increases have continued to benefit growth in total interest income. As of March 31, 2023, the Company's loan portfolio consisted of approximately $6.4 billion in outstanding principal with a weighted average coupon rate of 5.0%. During the three-month periods ending March 31, 2023, December 31, 2022, and September 30, 2022, the weighted average coupon on loan production in the quarter was 6.55%, 6.25%, and 5.24%, respectively. Included in the March 31, 2023 loan total are variable rate loans totaling $3.6 billion, of which, $810.8 million are considered floating based on the Wall Street Prime index. In addition, the Company holds certain investment securities totaling $384.1 million which are subject to repricing on not less than a quarterly basis.

Asset Quality and Credit Loss Provisioning

During the three months ended March 31, 2023, the Company recorded a provision for credit losses of $4.2 million, as compared to $4.2 million during the trailing quarter, and $8.3 million during the first quarter of 2022.

The following table presents details of the provision for credit losses for the periods indicated:

 

 

Three months ended

(dollars in thousands)

 

March 31, 2023

 

December 31, 2022

 

March 31, 2022

Addition to allowance for credit losses

 

$

4,315

 

 

$

4,300

 

 

$

8,205

Addition to (reversal of) reserve for unfunded loan commitments

 

 

(120

)

 

 

(55

)

 

 

125

Total provision for credit losses

 

$

4,195

 

 

$

4,245

 

 

$

8,330

The following table presents the activity in the allowance for credit losses on loans for the periods indicated:

 

 

Three months ended

(dollars in thousands)

 

March 31, 2023

 

December 31, 2022

 

March 31, 2022

Balance, beginning of period

 

$

105,680

 

 

$

101,488

 

 

$

85,376

 

ACL at acquisition for PCD loans

 

 

 

 

 

 

 

 

2,037

 

Provision for credit losses

 

 

4,315

 

 

 

4,300

 

 

 

8,205

 

Loans charged-off

 

 

(1,758

)

 

 

(174

)

 

 

(743

)

Recoveries of previously charged-off loans

 

 

170

 

 

 

66

 

 

 

1,174

 

Balance, end of period

 

$

108,407

 

 

$

105,680

 

 

$

96,049

 

The allowance for credit losses (ACL) was $108.4 million as of March 31, 2023, a net increase of $2.7 million over the immediately preceding quarter. The provision for credit losses of $4.3 million during the recent quarter was the net effect of increases in required reserves due to qualitative factors, individually analyzed credits and quantitative reserves under the cohort model. On a comparative basis, the provision for credit losses of $8.2 million during the three months ended March 31, 2022 was largely the result of day 1 required reserves from loans acquired in connection with the Valley Republic Bank merger in the same period. For the current quarter, the qualitative components of the ACL resulted in a net increase in required reserves totaling approximately $4.7 million due to increased uncertainty in US economic policy, and the ramifications on local and statewide unemployment rates. Meanwhile, the quantitative component of the ACL decreased reserve requirements by approximately $1.9 million over the trailing quarter due to improvement in needed in specific reserves on loans.

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 included improving shifts in the magnitude of changes for both the unemployment and GDP factors leading up to the balance sheet date, particularly CA unemployment trends. As compared to historical norms, inflation remains elevated from continued disruptions in the supply chain, wage pressures, and higher living costs such as housing and food prices Despite the expected continued benefit to the net interest income of the Company from the elevated rate environment, Management notes the rapid intervals of rate increases by the Federal Reserve and flattening or inversion of the yield curve, have boosted expectations of the US entering a recession within 12 months. As a result, management continues to believe that certain credit weakness are likely present in the overall economy and that it is appropriate to cautiously maintain a reserve level that incorporates such risk factors.

Loans past due 30 days or more increased by $2.9 million during the quarter ended March 31, 2023, to $7.9 million, as compared to $4.9 million at December 31, 2022. Non-performing loans were $16.0 million at March 31, 2023, a decrease of $5.3 million from $21.3 million as of December 31, 2022, and a decrease of $1.9 million from $14.1 million as of March 31, 2022. Of the $16.0 million loans designated as non-performing, approximately $10.2 million are less than 30 days past due as of March 31, 2023.

The following table illustrates the total loans by risk rating and their respective percentage of total loans for the periods presented:

 

 

March 31,

 

% of Loans

 

December 31,

 

% of Loans

 

March 31,

 

% of Loans

(dollars in thousands)

 

2023

 

Outstanding

 

2022

 

Outstanding

 

2022

 

Outstanding

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

6,232,962

 

 

97.0

%

 

$

6,251,945

 

 

96.9

%

 

$

5,682,026

 

 

97.1

%

Special Mention

 

 

125,492

 

 

2.0

%

 

 

127,000

 

 

2.0

%

 

 

120,684

 

 

2.1

%

Substandard

 

 

63,967

 

 

1.0

%

 

 

71,502

 

 

1.1

%

 

 

49,265

 

 

0.8

%

Total

 

$

6,422,421

 

 

 

 

$

6,450,447

 

 

 

 

$

5,851,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified loans to total loans

 

 

1.00

%

 

 

 

 

1.11

%

 

 

 

 

0.84

%

 

 

Loans past due 30+ days to total loans

 

 

0.12

%

 

 

 

 

0.08

%

 

 

 

 

0.14

%

 

 

The ratio of classified loans decreased to 1.00% as of March 31, 2023, as compared to 1.11% in the trailing quarter, but increased by 16 basis points from the equivalent period in 2022. The Company's criticized loan balances decreased during the current quarter by $9.0 million to $189.5 million as of March 31, 2023.

There were no changes to Other Real Estate Owned balances during the first quarter of 2023. As of March 31, 2023, other real estate owned consisted of nine properties with a carrying value of approximately $3.4 million.

Non-performing assets of $19.5 million at March 31, 2023, represented 0.20% of total assets, generally in line with the $24.8 million or 0.25% and $17.0 million or 0.17% as of December 31, 2022 and March 31, 2022, respectively.

Allocation of Credit Loss Reserves by Loan Type

 

 

As of March 31, 2023

 

As of December 31, 2022

 

As of March 31, 2022

(dollars in thousands)

 

Amount

 

% of Loans

Outstanding

 

Amount

 

% of Loans

Outstanding

 

Amount

 

% of Loans

Outstanding

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

CRE - Non Owner Occupied

 

$

32,963

 

1.53

%

 

$

30,962

 

1.44

%

 

$

28,055

 

1.48

%

CRE - Owner Occupied

 

 

14,559

 

1.50

%

 

 

14,014

 

1.42

%

 

 

12,071

 

1.42

%

Multifamily

 

 

13,873

 

1.47

%

 

 

13,132

 

1.39

%

 

 

11,987

 

1.43

%

Farmland

 

 

3,542

 

1.29

%

 

 

3,273

 

1.17

%

 

 

2,879

 

1.15

%

Total commercial real estate loans

 

 

64,937

 

1.49

%

 

 

61,381

 

1.41

%

 

 

54,992

 

1.43

%

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

SFR 1-4 1st Liens

 

 

11,920

 

1.48

%

 

 

11,268

 

1.43

%

 

 

10,669

 

1.50

%

SFR HELOCs and Junior Liens

 

 

10,914

 

2.91

%

 

 

11,413

 

2.90

%

 

 

10,843

 

2.99

%

Other

 

 

2,062

 

3.76

%

 

 

1,958

 

3.45

%

 

 

2,340

 

3.73

%

Total consumer loans

 

 

24,896

 

2.02

%

 

 

24,639

 

1.99

%

 

 

23,852

 

2.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

 

12,069

 

2.18

%

 

 

13,597

 

2.39

%

 

 

8,869

 

1.77

%

Construction

 

 

5,655

 

2.50

%

 

 

5,142

 

2.43

%

 

 

7,437

 

2.45

%

Agricultural Production

 

 

833

 

1.77

%

 

 

906

 

1.48

%

 

 

883

 

1.27

%

Leases

 

 

17

 

0.20

%

 

 

15

 

0.19

%

 

 

16

 

0.20

%

Allowance for credit losses

 

 

108,407

 

1.69

%

 

 

105,680

 

1.64

%

 

 

96,049

 

1.64

%

Reserve for unfunded loan commitments

 

 

4,195

 

 

 

 

4,315

 

 

 

 

3,915

 

 

Total allowance for credit losses

 

$

112,602

 

1.75

%

 

$

109,995

 

1.71

%

 

$

99,964

 

1.71

%

For the periods presented in the table above and for purposes of calculating the "% of Loans Outstanding", PPP loans are included in the segment "Commercial and Industrial." PPP loans are fully guaranteed and therefore would not require any loss reserve allocation. Excluding the net outstanding balances of PPP loans from the ratio of the ACL to total loans results in a reserve ratio of approximately 1.69% as of March 31, 2023. 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 March 31, 2023, the unamortized discount associated with acquired loans totaled $29.1 million.

Non-interest Income

The following table presents the key components of non-interest income for the current and trailing quarterly periods indicated:

 

 

Three months ended

 

 

 

 

(dollars in thousands)

 

March 31, 2023

 

December 31, 2022

 

Change

 

% Change

ATM and interchange fees

 

$

6,344

 

 

$

6,826

 

 

$

(482

)

 

(7.1

)%

Service charges on deposit accounts

 

 

3,431

 

 

 

4,103

 

 

 

(672

)

 

(16.4

)%

Other service fees

 

 

1,166

 

 

 

1,091

 

 

 

75

 

 

6.9

%

Mortgage banking service fees

 

 

465

 

 

 

465

 

 

 

 

 

%

Change in value of mortgage servicing rights

 

 

(209

)

 

 

(142

)

 

 

(67

)

 

47.2

%

Total service charges and fees

 

 

11,197

 

 

 

12,343

 

 

 

(1,146

)

 

(9.3

)%

Increase in cash value of life insurance

 

 

802

 

 

 

809

 

 

 

(7

)

 

(0.9

)%

Asset management and commission income

 

 

934

 

 

 

1,040

 

 

 

(106

)

 

(10.2

)%

Gain on sale of loans

 

 

206

 

 

 

197

 

 

 

9

 

 

4.6

%

Lease brokerage income

 

 

98

 

 

 

172

 

 

 

(74

)

 

(43.0

)%

Sale of customer checks

 

 

288

 

 

 

296

 

 

 

(8

)

 

(2.7

)%

Loss on sale of investment securities

 

 

(164

)

 

 

 

 

 

(164

)

 

%

Gain on marketable equity securities

 

 

42

 

 

 

6

 

 

 

36

 

 

600.0

%

Other income

 

 

232

 

 

 

1,017

 

 

 

(785

)

 

(77.2

)%

Total other non-interest income

 

 

2,438

 

 

 

3,537

 

 

 

(1,099

)

 

(31.1

)%

Total non-interest income

 

$

13,635

 

 

$

15,880

 

 

$

(2,245

)

 

(14.1

)%

Non-interest income decreased $2.2 million or 14.1% to $13.6 million during the three months ended March 31, 2023, compared to $15.9 million during the quarter ended December 31, 2022. Total service charges and fees declined by $1.1 million or 9.3% during the period, of which $0.9 million is due to waived or reversed fees related to the network outage disclosed in the Company's 8-K filed with the SEC on February 14, 2023. A loss on the sale of investment securities totaling $0.2 million was recorded during the quarter in connection with the Company's strategic sale of $24.3 million in available-for-sale securities. Other income decreased by $0.8 million, $0.6 million of which was non-recurring income recognized in the prior period for fees earned from the temporary sale of deposits.

The following table presents the key components of non-interest income for the current and prior year periods indicated:

 

 

Three months ended March 31,

 

 

 

 

(dollars in thousands)

 

2023

 

2022

 

Change

 

% Change

ATM and interchange fees

 

$

6,344

 

 

$

6,243

 

 

$

101

 

 

1.6

%

Service charges on deposit accounts

 

 

3,431

 

 

 

3,834

 

 

 

(403

)

 

(10.5

)%

Other service fees

 

 

1,166

 

 

 

882

 

 

 

284

 

 

32.2

%

Mortgage banking service fees

 

 

465

 

 

 

463

 

 

 

2

 

 

0.4

%

Change in value of mortgage servicing rights

 

 

(209

)

 

 

274

 

 

 

(483

)

 

(176.3

)%

Total service charges and fees

 

 

11,197

 

 

 

11,696

 

 

 

(499

)

 

(4.3

)%

Increase in cash value of life insurance

 

 

802

 

 

 

638

 

 

 

164

 

 

25.7

%

Asset management and commission income

 

 

934

 

 

 

887

 

 

 

47

 

 

5.3

%

Gain on sale of loans

 

 

206

 

 

 

1,246

 

 

 

(1,040

)

 

(83.5

)%

Lease brokerage income

 

 

98

 

 

 

158

 

 

 

(60

)

 

(38.0

)%

Sale of customer checks

 

 

288

 

 

 

104

 

 

 

184

 

 

176.9

%

Loss on sale of investment securities

 

 

(164

)

 

 

 

 

 

(164

)

 

%

Gain (loss) on marketable equity securities

 

 

42

 

 

 

(137

)

 

 

179

 

 

(130.7

)%

Other income

 

 

232

 

 

 

504

 

 

 

(272

)

 

(54.0

)%

Total other non-interest income

 

 

2,438

 

 

 

3,400

 

 

 

(962

)

 

(28.3

)%

Total non-interest income

 

$

13,635

 

 

$

15,096

 

 

$

(1,461

)

 

(9.7

)%

Non-interest income decreased $1.5 million or 9.7% to $13.6 million during the three months ended March 31, 2023, compared to $15.1 million during the quarter ended March 31, 2022. In addition to a decline in service charges and fees noted above, the declining mortgage related activity resulting from elevated interest rates reduced income recorded from the sale of loans by $1.0 million or 83.5%, as compared to the three months ended March 31, 2022.

Non-interest Expense

The following table presents the key components of non-interest expense for the current and trailing quarterly periods indicated:

 

 

Three months ended

 

 

 

 

(dollars in thousands)

 

March 31, 2023

 

December 31, 2022

 

Change

 

% Change

Base salaries, net of deferred loan origination costs

 

$

23,000

 

$

22,099

 

 

$

901

 

 

4.1

%

Incentive compensation

 

 

2,895

 

 

6,211

 

 

 

(3,316

)

 

(53.4

)%

Benefits and other compensation costs

 

 

6,668

 

 

8,301

 

 

 

(1,633

)

 

(19.7

)%

Total salaries and benefits expense

 

 

32,563

 

 

36,611

 

 

 

(4,048

)

 

(11.1

)%

Occupancy

 

 

4,160

 

 

3,957

 

 

 

203

 

 

5.1

%

Data processing and software

 

 

4,032

 

 

4,102

 

 

 

(70

)

 

(1.7

)%

Equipment

 

 

1,383

 

 

1,525

 

 

 

(142

)

 

(9.3

)%

Intangible amortization

 

 

1,656

 

 

1,702

 

 

 

(46

)

 

(2.7

)%

Advertising

 

 

759

 

 

1,249

 

 

 

(490

)

 

(39.2

)%

ATM and POS network charges

 

 

1,709

 

 

2,134

 

 

 

(425

)

 

(19.9

)%

Professional fees

 

 

1,589

 

 

1,111

 

 

 

478

 

 

43.0

%

Telecommunications

 

 

595

 

 

638

 

 

 

(43

)

 

(6.7

)%

Regulatory assessments and insurance

 

 

792

 

 

815

 

 

 

(23

)

 

(2.8

)%

Postage

 

 

299

 

 

319

 

 

 

(20

)

 

(6.3

)%

Operational loss

 

 

435

 

 

235

 

 

 

200

 

 

85.1

%

Courier service

 

 

339

 

 

616

 

 

 

(277

)

 

(45.0

)%

Gain on sale or acquisition of foreclosed assets

 

 

 

 

(235

)

 

 

235

 

 

(100.0

)%

Gain on disposal of fixed assets

 

 

 

 

(1

)

 

 

1

 

 

(100.0

)%

Other miscellaneous expense

 

 

3,483

 

 

4,691

 

 

 

(1,208

)

 

(25.8

)%

Total other non-interest expense

 

 

21,231

 

 

22,858

 

 

 

(1,627

)

 

(7.1

)%

Total non-interest expense

 

$

53,794

 

$

59,469

 

 

$

(5,675

)

 

(9.5

)%

Average full-time equivalent staff

 

 

1,219

 

 

1,210

 

 

 

9

 

 

0.7

%

Non-interest expense for the quarter ended March 31, 2023, decreased $5.7 million or 9.5% to $53.8 million as compared to $59.5 million during the trailing quarter ended December 31, 2022. Total salaries and benefits expense decreased by $4.0 million or 11.1%, led primarily by a $3.3 million reduction in incentive compensation expense. The Company also recorded approximately $2.0 million less in benefits and other compensation costs as compared to the trailing quarter, following the amendments to certain retirement plans announced in December of 2022. Advertising costs decreased $0.5 million or 39.2% during the quarter, connected to a decrease in media advertising for promotional campaigns. ATM and point of service network charges decreased $0.4 million or 19.9% to $1.7 million, primarily due to one-time card processing equipment conversion expenses of $0.3 million in the previous quarter. Professional fees increased by $0.5 million and included $0.7 million associated with the network outage disclosed in the Company's 8-K filed with the SEC on February 14, 2023. Finally, other miscellaneous expenses decreased $1.2 million or 25.8%, largely from $0.7 million less in appraisal and other loan costs.

The following table presents the key components of non-interest expense for the current and prior year quarterly periods indicated:

 

 

Three months ended March 31,

 

 

 

 

(dollars in thousands)

 

2023

 

2022

 

Change

 

% Change

Base salaries, net of deferred loan origination costs

 

$

23,000

 

 

$

18,216

 

 

$

4,784

 

 

26.3

%

Incentive compensation

 

 

2,895

 

 

 

2,583

 

 

 

312

 

 

12.1

%

Benefits and other compensation costs

 

 

6,668

 

 

 

5,972

 

 

 

696

 

 

11.7

%

Total salaries and benefits expense

 

 

32,563

 

 

 

26,771

 

 

 

5,792

 

 

21.6

%

Occupancy

 

 

4,160

 

 

 

3,575

 

 

 

585

 

 

16.4

%

Data processing and software

 

 

4,032

 

 

 

3,513

 

 

 

519

 

 

14.8

%

Equipment

 

 

1,383

 

 

 

1,333

 

 

 

50

 

 

3.8

%

Intangible amortization

 

 

1,656

 

 

 

1,228

 

 

 

428

 

 

34.9

%

Advertising

 

 

759

 

 

 

637

 

 

 

122

 

 

19.2

%

ATM and POS network charges

 

 

1,709

 

 

 

1,375

 

 

 

334

 

 

24.3

%

Professional fees

 

 

1,589

 

 

 

876

 

 

 

713

 

 

81.4

%

Telecommunications

 

 

595

 

 

 

521

 

 

 

74

 

 

14.2

%

Regulatory assessments and insurance

 

 

792

 

 

 

720

 

 

 

72

 

 

10.0

%

Merger and acquisition expenses

 

 

 

 

 

4,032

 

 

 

(4,032

)

 

(100.0

)%

Postage

 

 

299

 

 

 

228

 

 

 

71

 

 

31.1

%

Operational loss

 

 

435

 

 

 

(183

)

 

 

618

 

 

(337.7

)%

Courier service

 

 

339

 

 

 

414

 

 

 

(75

)

 

(18.1

)%

Loss on disposal of fixed assets

 

 

 

 

 

(1,078

)

 

 

1,078

 

 

(100.0

)%

Other miscellaneous expense

 

 

3,483

 

 

 

2,485

 

 

 

998

 

 

40.2

%

Total other non-interest expense

 

 

21,231

 

 

 

19,676

 

 

 

1,555

 

 

7.9

%

Total non-interest expense

 

$

53,794

 

 

$

46,447

 

 

$

7,347

 

 

15.8

%

Average full-time equivalent staff

 

 

1,219

 

 

 

1,084

 

 

 

135

 

 

12.5

%

Generally, the increases in recurring non-interest expense items reflect the VRB merger closing on March 25, 2022, and therefore, related expenses for the combined entities, less certain realized cost savings, are largely only being captured within the most recent three months ended March 31, 2023. Total non-interest expense increased $7.3 million or 15.8% to $53.8 million during the three months ended March 31, 2023 as compared to $46.4 million for the quarter ended March 31, 2022. Total salaries and benefits expense increased by $5.8 million or 21.6% to $32.6 million, largely from a net increase of 135 full-time equivalent positions, 99 of which resulted from the aforementioned merger with VRB. Professional fees increased by $0.7 million which was directly associated with the network outage disclosed in the Company's 8-K filed with the SEC on February 14, 2023.

Provision for Income Taxes

The Company’s effective tax rate was 26.8% for the quarter ended March 31, 2023, as compared to 27.9% for the year ended December 31, 2022. 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. There can be no assurance that future developments affecting us will be the same as those anticipated by management. 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 strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations impacts on the Company's business condition and financial operating results; the impact of changes in financial services industry policies, laws and regulations; regulatory restrictions on our ability to successfully market and price our products to consumers; technological changes; weather, natural disasters and other catastrophic events that may or may not be caused by climate change and their effects on economic and business environments in which the Company operates; the continuing adverse impact on the U.S. economy, including the markets in which we operate due to the lingering effects of the COVID-19 global pandemic; the impact of a slowing U.S. economy and potentially increased unemployment on the performance of our loan portfolio, the market value of our investment securities, 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, terrorism or geopolitical events; the quality and quantity of our deposits; adverse developments in the financial services industry generally such as the recent 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 mergers, acquisitions or dispositions, or identify and complete favorable transactions in the future, and/or realize the contemplated financial business benefits associated with any such activities; 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 lending 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 timing and effects of the implementation of the 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 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; possible other-than-temporary impairment of securities held by us due to changes in credit quality or rates; 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; our noninterest expense and the efficiency ratio; competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional providers including retail businesses and technology companies; the challenges of attracting, integrating and retaining key employees; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; 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; changes to U.S. tax policies, including our effective income tax rate; the effect of a fall in stock market prices on our brokerage and wealth management businesses; the transition away from the London Interbank Offered Rate toward new interest rate benchmarks; and our ability to manage the risks involved in the foregoing. 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, 2022, 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 share data) 

 

 

Three months ended

 

 

March 31,

2023

 

December 31,

2022

 

September 30,

2022

 

June 30,

2022

 

March 31,

2022

Revenue and Expense Data

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

102,907

 

 

$

102,989

 

 

$

96,366

 

 

$

86,955

 

 

$

69,195

 

Interest expense

 

 

9,571

 

 

 

4,089

 

 

 

2,260

 

 

 

1,909

 

 

 

1,271

 

Net interest income

 

 

93,336

 

 

 

98,900

 

 

 

94,106

 

 

 

85,046

 

 

 

67,924

 

Provision for credit losses

 

 

4,195

 

 

 

4,245

 

 

 

3,795

 

 

 

2,100

 

 

 

8,330

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

11,197

 

 

 

12,343

 

 

 

12,682

 

 

 

13,044

 

 

 

11,696

 

Loss on sale of investment securities

 

 

(164

)

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

2,602

 

 

 

3,537

 

 

 

2,958

 

 

 

3,386

 

 

 

3,400

 

Total noninterest income

 

 

13,635

 

 

 

15,880

 

 

 

15,640

 

 

 

16,430

 

 

 

15,096

 

Noninterest expense (2):

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

 

32,563

 

 

 

36,611

 

 

 

33,528

 

 

 

34,370

 

 

 

28,597

 

Occupancy and equipment

 

 

5,543

 

 

 

5,482

 

 

 

5,387

 

 

 

5,449

 

 

 

4,925

 

Data processing and network

 

 

5,741

 

 

 

6,236

 

 

 

5,143

 

 

 

5,468

 

 

 

5,089

 

Other noninterest expense

 

 

9,947

 

 

 

11,140

 

 

 

10,407

 

 

 

10,977

 

 

 

7,836

 

Total noninterest expense

 

 

53,794

 

 

 

59,469

 

 

 

54,465

 

 

 

56,264

 

 

 

46,447

 

Total income before taxes

 

 

48,982

 

 

 

51,066

 

 

 

51,486

 

 

 

43,112

 

 

 

28,243

 

Provision for income taxes

 

 

13,149

 

 

 

14,723

 

 

 

14,148

 

 

 

11,748

 

 

 

7,869

 

Net income

 

$

35,833

 

 

$

36,343

 

 

$

37,338

 

 

$

31,364

 

 

$

20,374

 

Share Data

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.08

 

 

$

1.09

 

 

$

1.12

 

 

$

0.93

 

 

$

0.68

 

Diluted earnings per share

 

$

1.07

 

 

$

1.09

 

 

$

1.12

 

 

$

0.93

 

 

$

0.67

 

Dividends per share

 

$

0.30

 

 

$

0.30

 

 

$

0.30

 

 

$

0.25

 

 

$

0.25

 

Book value per common share

 

$

32.84

 

 

$

31.39

 

 

$

29.71

 

 

$

31.25

 

 

$

32.78

 

Tangible book value per common share (1)

 

$

23.22

 

 

$

21.76

 

 

$

19.92

 

 

$

21.41

 

 

$

23.04

 

Shares outstanding

 

 

33,195,250

 

 

 

33,331,513

 

 

 

33,332,189

 

 

 

33,350,974

 

 

 

33,837,935

 

Weighted average shares

 

 

33,295,750

 

 

 

33,330,029

 

 

 

33,348,322

 

 

 

33,561,389

 

 

 

30,049,919

 

Weighted average diluted shares

 

 

33,437,680

 

 

 

33,467,393

 

 

 

33,463,364

 

 

 

33,705,280

 

 

 

30,201,698

 

Credit Quality

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses to gross loans

 

 

1.69

%

 

 

1.64

%

 

 

1.61

%

 

 

1.60

%

 

 

1.64

%

Loans past due 30 days or more

 

$

7,891

 

 

$

4,947

 

 

$

6,471

 

 

$

5,920

 

 

$

8,402

 

Total nonperforming loans

 

$

16,025

 

 

$

21,321

 

 

$

17,471

 

 

$

11,925

 

 

$

14,088

 

Total nonperforming assets

 

$

19,464

 

 

$

24,760

 

 

$

20,912

 

 

$

15,304

 

 

$

16,995

 

Loans charged-off

 

$

1,758

 

 

$

174

 

 

$

267

 

 

$

401

 

 

$

743

 

Loans recovered

 

$

170

 

 

$

66

 

 

$

311

 

 

$

356

 

 

$

1,174

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

 

Return on average total assets

 

 

1.47

%

 

 

1.45

%

 

 

1.46

%

 

 

1.24

%

 

 

0.94

%

Return on average equity

 

 

13.36

%

 

 

14.19

%

 

 

13.78

%

 

 

11.53

%

 

 

8.19

%

Average yield on loans, excluding PPP

 

 

5.21

%

 

 

5.10

%

 

 

4.87

%

 

 

4.70

%

 

 

4.65

%

Average yield on interest-earning assets

 

 

4.64

%

 

 

4.52

%

 

 

4.12

%

 

 

3.76

%

 

 

3.46

%

Average rate on interest-bearing deposits

 

 

0.43

%

 

 

0.18

%

 

 

0.08

%

 

 

0.07

%

 

 

0.06

%

Average cost of total deposits

 

 

0.25

%

 

 

0.10

%

 

 

0.04

%

 

 

0.04

%

 

 

0.04

%

Average cost of total deposits and other borrowings

 

 

0.38

%

 

 

0.12

%

 

 

0.04

%

 

 

0.02

%

 

 

0.02

%

Average rate on borrowings & subordinated debt

 

 

4.74

%

 

 

4.07

%

 

 

3.60

%

 

 

3.12

%

 

 

2.27

%

Average rate on interest-bearing liabilities

 

 

0.74

%

 

 

0.32

%

 

 

0.17

%

 

 

0.15

%

 

 

0.11

%

Net interest margin (fully tax-equivalent) (1)

 

 

4.21

%

 

 

4.34

%

 

 

4.02

%

 

 

3.67

%

 

 

3.39

%

Loans to deposits

 

 

80.02

%

 

 

77.45

%

 

 

72.95

%

 

 

69.81

%

 

 

67.15

%

Efficiency ratio

 

 

50.29

%

 

 

51.81

%

 

 

49.63

%

 

 

55.45

%

 

 

55.95

%

Supplemental Loan Interest Income Data

 

 

 

 

 

 

 

 

 

 

Discount accretion on acquired loans

 

$

1,397

 

 

$

1,751

 

 

$

714

 

 

$

1,677

 

 

$

1,323

 

All other loan interest income (excluding PPP) (1)

 

$

81,013

 

 

$

79,989

 

 

$

74,929

 

 

$

67,277

 

 

$

55,325

 

Total loan interest income (excluding PPP) (1)

 

$

82,410

 

 

$

81,740

 

 

$

75,643

 

 

$

68,954

 

 

$

56,648

 

(1)

 

Non-GAAP measure

(2)

 

Inclusive of merger related expenses

TRICO BANCSHARES—CONDENSED CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands)

 

 

 

Balance Sheet Data

 

March 31,

2023

 

December 31,

2022

 

September 30,

2022

 

June 30,

2022

 

March 31,

2022

Cash and due from banks

 

$

110,335

 

 

$

107,230

 

 

$

246,509

 

 

$

488,868

 

 

$

1,035,683

 

Securities, available for sale, net

 

 

2,408,452

 

 

 

2,455,036

 

 

 

2,482,857

 

 

 

2,608,771

 

 

 

2,365,708

 

Securities, held to maturity, net

 

 

152,067

 

 

 

160,983

 

 

 

168,038

 

 

 

176,794

 

 

 

186,748

 

Restricted equity securities

 

 

17,250

 

 

 

17,250

 

 

 

17,250

 

 

 

17,250

 

 

 

17,250

 

Loans held for sale

 

 

226

 

 

 

1,846

 

 

 

247

 

 

 

1,216

 

 

 

1,030

 

Loans:

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

4,353,959

 

 

 

4,359,083

 

 

 

4,238,930

 

 

 

4,049,893

 

 

 

3,832,974

 

Consumer

 

 

1,233,797

 

 

 

1,240,743

 

 

 

1,217,297

 

 

 

1,162,989

 

 

 

1,136,712

 

Commercial and industrial

 

 

553,098

 

 

 

569,921

 

 

 

534,960

 

 

 

507,685

 

 

 

500,882

 

Construction

 

 

225,996

 

 

 

211,560

 

 

 

243,571

 

 

 

313,646

 

 

 

303,960

 

Agriculture production

 

 

47,062

 

 

 

61,414

 

 

 

71,599

 

 

 

71,373

 

 

 

69,339

 

Leases

 

 

8,509

 

 

 

7,726

 

 

 

7,933

 

 

 

7,835

 

 

 

8,108

 

Total loans, gross

 

 

6,422,421

 

 

 

6,450,447

 

 

 

6,314,290

 

 

 

6,113,421

 

 

 

5,851,975

 

Allowance for credit losses

 

 

(108,407

)

 

 

(105,680

)

 

 

(101,488

)

 

 

(97,944

)

 

 

(96,049

)

Total loans, net

 

 

6,314,014

 

 

 

6,344,767

 

 

 

6,212,802

 

 

 

6,015,477

 

 

 

5,755,926

 

Premises and equipment

 

 

72,096

 

 

 

72,327

 

 

 

73,266

 

 

 

73,811

 

 

 

73,692

 

Cash value of life insurance

 

 

134,544

 

 

 

133,742

 

 

 

132,933

 

 

 

132,857

 

 

 

132,104

 

Accrued interest receivable

 

 

31,388

 

 

 

31,856

 

 

 

27,070

 

 

 

25,861

 

 

 

22,769

 

Goodwill

 

 

304,442

 

 

 

304,442

 

 

 

307,942

 

 

 

307,942

 

 

 

307,942

 

Other intangible assets

 

 

15,014

 

 

 

16,670

 

 

 

18,372

 

 

 

20,074

 

 

 

21,776

 

Operating leases, right-of-use

 

 

30,000

 

 

 

26,862

 

 

 

26,622

 

 

 

27,154

 

 

 

28,404

 

Other assets

 

 

252,566

 

 

 

257,975

 

 

 

262,971

 

 

 

224,536

 

 

 

169,296

 

Total assets

 

$

9,842,394

 

 

$

9,930,986

 

 

$

9,976,879

 

 

$

10,120,611

 

 

$

10,118,328

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

3,236,696

 

 

$

3,502,095

 

 

$

3,678,202

 

 

$

3,604,237

 

 

$

3,583,269

 

Interest-bearing demand deposits

 

 

1,635,706

 

 

 

1,718,541

 

 

 

1,749,123

 

 

 

1,796,580

 

 

 

1,788,639

 

Savings deposits

 

 

2,807,796

 

 

 

2,884,378

 

 

 

2,924,674

 

 

 

3,028,787

 

 

 

2,993,873

 

Time certificates

 

 

345,667

 

 

 

223,999

 

 

 

303,770

 

 

 

327,171

 

 

 

348,696

 

Total deposits

 

 

8,025,865

 

 

 

8,329,013

 

 

 

8,655,769

 

 

 

8,756,775

 

 

 

8,714,477

 

Accrued interest payable

 

 

1,643

 

 

 

1,167

 

 

 

853

 

 

 

755

 

 

 

653

 

Operating lease liability

 

 

32,228

 

 

 

29,004

 

 

 

28,717

 

 

 

29,283

 

 

 

30,500

 

Other liabilities

 

 

157,222

 

 

 

159,741

 

 

 

153,110

 

 

 

155,529

 

 

 

126,348

 

Other borrowings

 

 

434,140

 

 

 

264,605

 

 

 

47,068

 

 

 

35,089

 

 

 

36,184

 

Junior subordinated debt

 

 

101,051

 

 

 

101,040

 

 

 

101,024

 

 

 

101,003

 

 

 

100,984

 

Total liabilities

 

 

8,752,149

 

 

 

8,884,570

 

 

 

8,986,541

 

 

 

9,078,434

 

 

 

9,009,146

 

Common stock

 

 

695,168

 

 

 

697,448

 

 

 

696,348

 

 

 

696,441

 

 

 

706,672

 

Retained earnings

 

 

564,538

 

 

 

542,873

 

 

 

516,699

 

 

 

491,705

 

 

 

479,868

 

Accum. other comprehensive loss, net of tax

 

 

(169,461

)

 

 

(193,905

)

 

 

(222,709

)

 

 

(145,969

)

 

 

(77,358

)

Total shareholders’ equity

 

$

1,090,245

 

 

$

1,046,416

 

 

$

990,338

 

 

$

1,042,177

 

 

$

1,109,182

 

Quarterly Average Balance Data

 

 

 

 

 

 

 

 

 

 

Average loans, excluding PPP

 

$

6,412,386

 

 

$

6,357,250

 

 

$

6,162,267

 

 

$

5,890,578

 

 

$

4,937,865

 

Average interest-earning assets

 

$

9,028,061

 

 

$

9,076,450

 

 

$

9,320,152

 

 

$

9,330,059

 

 

$

8,153,200

 

Average total assets

 

$

9,878,927

 

 

$

9,932,931

 

 

$

10,131,118

 

 

$

10,121,714

 

 

$

8,778,256

 

Average deposits

 

$

8,218,576

 

 

$

8,545,172

 

 

$

8,752,215

 

 

$

8,743,320

 

 

$

7,521,930

 

Average borrowings and subordinated debt

 

$

378,676

 

 

$

186,957

 

 

$

139,919

 

 

$

136,244

 

 

$

105,702

 

Average total equity

 

$

1,087,473

 

 

$

1,016,468

 

 

$

1,074,776

 

 

$

1,091,454

 

 

$

1,009,224

 

Capital Ratio Data

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

 

14.5

%

 

 

14.2

%

 

 

14.0

%

 

 

14.1

%

 

 

15.0

%

Tier 1 capital ratio

 

 

12.7

%

 

 

12.4

%

 

 

12.2

%

 

 

12.3

%

 

 

13.1

%

Tier 1 common equity ratio

 

 

12.0

%

 

 

11.7

%

 

 

11.4

%

 

 

11.5

%

 

 

12.3

%

Tier 1 leverage ratio

 

 

10.1

%

 

 

10.1

%

 

 

9.6

%

 

 

9.3

%

 

 

10.8

%

Tangible capital ratio (1)

 

 

8.1

%

 

 

7.6

%

 

 

6.9

%

 

 

7.3

%

 

 

8.0

%

(1)

 

Non-GAAP measure 

TRICO BANCSHARES—NON-GAAP FINANCIAL MEASURES

(Unaudited. Dollars in thousands)

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

(dollars in thousands)

 

March 31,

2023

 

December 31,

2022

 

March 31,

2022

Net interest margin

 

 

 

 

 

 

Acquired loans discount accretion, net:

 

 

 

 

 

 

Amount (included in interest income)

 

$

1,397

 

 

$

1,751

 

 

$

1,323

 

Effect on average loan yield

 

 

0.09

%

 

 

0.11

%

 

 

0.11

%

Effect on net interest margin (FTE)

 

 

0.06

%

 

 

0.07

%

 

 

0.07

%

Net interest margin (FTE)

 

 

4.21

%

 

 

4.34

%

 

 

3.39

%

Net interest margin less effect of acquired loan discount accretion (Non-GAAP)

 

 

4.15

%

 

 

4.27

%

 

 

3.32

%

PPP loans yield, net:

 

 

 

 

 

 

Amount (included in interest income)

 

$

5

 

 

$

16

 

 

$

1,097

 

Effect on net interest margin (FTE)

 

 

%

 

 

%

 

 

0.03

%

Net interest margin less effect of PPP loan yield (Non-GAAP)

 

 

4.21

%

 

 

4.34

%

 

 

3.36

%

Acquired loan discount accretion and PPP loan yield, net:

 

 

 

 

 

 

Amount (included in interest income)

 

$

1,402

 

 

$

1,767

 

 

$

2,420

 

Effect on net interest margin (FTE)

 

 

0.06

%

 

 

0.07

%

 

 

0.10

%

Net interest margin less effect of acquired loan discount accretion and PPP yields, net (Non-GAAP)

 

 

4.15

%

 

 

4.27

%

 

 

3.29

%

 

 

Three months ended

(dollars in thousands)

 

March 31,

2023

 

December 31,

2022

 

March 31,

2022

Pre-tax pre-provision return on average assets or equity

 

 

 

 

 

 

Net income (GAAP)

 

$

35,833

 

 

$

36,343

 

 

$

20,374

 

Exclude provision for income taxes

 

 

13,149

 

 

 

14,723

 

 

 

7,869

 

Exclude provision (benefit) for credit losses

 

 

4,195

 

 

 

4,245

 

 

 

8,330

 

Net income before income tax and provision expense (Non-GAAP)

 

$

53,177

 

 

$

55,311

 

 

$

36,573

 

 

 

 

 

 

 

 

Average assets (GAAP)

 

$

9,878,927

 

 

$

9,932,931

 

 

$

8,778,256

 

Average equity (GAAP)

 

$

1,087,473

 

 

$

1,016,468

 

 

$

1,009,224

 

 

 

 

 

 

 

 

Return on average assets (GAAP) (annualized)

 

 

1.47

%

 

 

1.45

%

 

 

0.94

%

Pre-tax pre-provision return on average assets (Non-GAAP) (annualized)

 

 

2.18

%

 

 

2.21

%

 

 

1.69

%

Return on average equity (GAAP) (annualized)

 

 

13.36

%

 

 

14.19

%

 

 

8.19

%

Pre-tax pre-provision return on average equity (Non-GAAP) (annualized)

 

 

19.83

%

 

 

21.59

%

 

 

14.70

%

 

 

Three months ended

(dollars in thousands)

 

March 31,

2023

 

December 31,

2022

 

March 31,

2022

Return on tangible common equity

 

 

 

 

 

 

Average total shareholders' equity

 

$

1,087,473

 

 

$

1,016,468

 

 

$

1,009,224

 

Exclude average goodwill

 

 

304,442

 

 

 

306,192

 

 

 

226,676

 

Exclude average other intangibles

 

 

15,842

 

 

 

17,521

 

 

 

12,604

 

Average tangible common equity (Non-GAAP)

 

$

767,189

 

 

$

692,755

 

 

$

769,944

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

35,833

 

 

$

36,343

 

 

$

20,374

 

Exclude amortization of intangible assets, net of tax effect

 

 

1,166

 

 

 

1,199

 

 

 

865

 

Tangible net income available to common shareholders (Non-GAAP)

 

$

36,999

 

 

$

37,542

 

 

$

21,239

 

 

 

 

 

 

 

 

Return on average equity

 

 

13.36

%

 

 

14.19

%

 

 

8.19

%

Return on average tangible common equity (Non-GAAP)

 

 

19.56

%

 

 

21.50

%

 

 

11.19

%

 

 

Three months ended

(dollars in thousands)

 

March 31,

2023

 

December 31,

2022

 

September 30,

2022

 

June 30,

2022

 

March 31,

2022

Tangible shareholders' equity to tangible assets

 

 

 

 

 

 

 

 

 

 

Shareholders' equity (GAAP)

 

$

1,090,245

 

 

$

1,046,416

 

 

$

990,338

 

 

$

1,042,177

 

 

$

1,109,182

 

Exclude goodwill and other intangible assets, net

 

 

319,456

 

 

 

321,112

 

 

 

326,314

 

 

 

328,016

 

 

 

329,718

 

Tangible shareholders' equity (Non-GAAP)

 

$

770,789

 

 

$

725,304

 

 

$

664,024

 

 

$

714,161

 

 

$

779,464

 

 

 

 

 

 

 

 

 

 

 

 

Total assets (GAAP)

 

$

9,842,394

 

 

$

9,930,986

 

 

$

9,976,879

 

 

$

10,120,611

 

 

$

10,118,328

 

Exclude goodwill and other intangible assets, net

 

 

319,456

 

 

 

321,112

 

 

 

326,314

 

 

 

328,016

 

 

 

329,718

 

Total tangible assets (Non-GAAP)

 

$

9,522,938

 

 

$

9,609,874

 

 

$

9,650,565

 

 

$

9,792,595

 

 

$

9,788,610

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity to total assets (GAAP)

 

 

11.08

%

 

 

10.54

%

 

 

9.93

%

 

 

10.30

%

 

 

10.96

%

Tangible shareholders' equity to tangible assets (Non-GAAP)

 

 

8.09

%

 

 

7.55

%

 

 

6.88

%

 

 

7.29

%

 

 

7.96

%

 

 

Three months ended

(dollars in thousands)

 

March 31,

2023

 

December 31,

2022

 

September 30,

2022

 

June 30,

2022

 

March 31,

2022

Tangible common shareholders' equity per share

 

 

 

 

 

 

 

 

 

 

Tangible s/h equity (Non-GAAP)

 

$

770,789

 

$

725,304

 

$

664,024

 

$

714,161

 

$

779,464

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding at end of period

 

 

33,195,250

 

 

33,331,513

 

 

33,332,189

 

 

33,350,974

 

 

33,837,935

 

 

 

 

 

 

 

 

 

 

 

Common s/h equity (book value) per share (GAAP)

 

$

32.84

 

$

31.39

 

$

29.71

 

$

31.25

 

$

32.78

Tangible common shareholders' equity (tangible book value) per share (Non-GAAP)

 

$

23.22

 

$

21.76

 

$

19.92

 

$

21.41

 

$

23.04

 

Contacts

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

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