TCBK TriCo Bancshares

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

 

FORM 8-K

 

 

Current report pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 28, 2016

 

 

TriCo Bancshares

(Exact name of registrant as specified in its charter)

 

 

 

California		0-10661		94-2792841
(State or other jurisdiction of incorporation or organization)		(Commission File No.)		(I.R.S. Employer Identification No.)
63 Constitution Drive, Chico, California				95973
(Address of principal executive offices)				(Zip Code)

Registrant’s telephone number, including area code: (530) 898-0300

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 2.02. Results of Operations and Financial Condition.

On January 28, 2016, TriCo Bancshares announced its fourth quarter 2015 financial results. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

Item 9.01: Financial Statements and Exhibits

(d) Exhibits

 

99.1		Press release dated January 28, 2016

 

*

The information furnished under Item 2.02 and Item 9.01 of this Current Period on Form 8-K, including the exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of TriCo Bancshares under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

				TRICO BANCSHARES
Date: January 28, 2016		By		/s/ Thomas J. Reddish
				Thomas J. Reddish, Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

Exhibit 99.1

 

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

TRICO BANCSHARES ANNOUNCES QUARTERLY RESULTS

CHICO, Calif. – (January 28, 2016) – TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank, today announced earnings of $11,422,000, or $0.50 per diluted share, for the three months ended December 31, 2015. For the three months ended December 31, 2014 the Company reported earnings of $5,650,000, or $0.25 per diluted share. Diluted shares outstanding were 23,055,900 and 22,726,795 for the three months ended December 31, 2015 and 2014, respectively.

On October 3, 2014, TriCo completed its acquisition of North Valley Bancorp. North Valley Bancorp was headquartered in Redding, California, and was the parent of North Valley Bank that had approximately $935 million in assets and 22 commercial banking offices in Shasta, Humboldt, Del Norte, Mendocino, Yolo, Sonoma, Placer and Trinity Counties in Northern California. In connection with the acquisition, North Valley Bank was merged into Tri Counties Bank. Beginning on October 4, 2014, the effect of revenue and expenses from the operations of North Valley Bancorp, and 6,575,550 shares of TriCo Bancshares common shares issued in consideration of the merger are included in the results of the Company.

On October 25, 2014, North Valley Bank’s electronic customer service and other data processing systems were converted into Tri Counties Bank’s systems. Between January 7, 2015 and January 21, 2015, four Tri Counties Bank branches and four former North Valley Bank branches were consolidated into other Tri Counties Bank or other former North Valley Bank branches.

Included in the results of the Company for the three months ended December 31, 2015 and 2014 were $0 and $3,590,000, respectively, of nonrecurring noninterest expenses related to the merger with North Valley Bancorp of which $0 and $438,000, respectively, were not deductible for income tax purposes. Excluding these nonrecurring merger related expenses, but including the revenue and other expenses from the operations of North Valley Bancorp from October 4, 2014 to December 31, 2015, diluted earnings per share for the three months ended December 31, 2015 and 2014 would have been $0.50 and $0.35, respectively, on earnings of $11,422,000 and $7,916,000, respectively. In addition to these nonrecurring merger related expenses, there were other expense and revenue items during the three months ended December 31, 2015 and 2014 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 December 31,
(dollars and shares in thousands)		2015				2014				$ Change				% Change
Net Interest Income		$	41,141			$	34,970			$	6,171				17.6	%
Benefit from reversal of provision for loan losses			908				1,421				(513	)
Noninterest income			11,445				9,755				1,690				17.3	%
Noninterest expense			(34,684	)			(36,566	)			1,882				(5.1	%)
Provision for income taxes			(7,388	)			(3,930	)			(3,458	)			88.0	%
Net income		$	11,422			$	5,650			$	5,772				102.2	%
Average common shares			22,770				22,501				269				1.2	%
Average diluted common shares			23,056				22,727				329				1.4	%

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

 

Ending balances		As of December 31,
(dollars in thousands)		2015				2014				$ Change				% Change
Total assets		$	4,220,722			$	3,916,458			$	304,264				7.8	%
Total loans			2,522,937				2,282,524				240,413				10.5	%
Total investments			1,148,371				776,587				371,784				47.9	%
Total deposits		$	3,631,266			$	3,380,423			$	250,843				7.4	%
Qtrly Avg balances		As of December 31,
(dollars in thousands)		2015				2014				$ Change				% Change
Total assets		$	4,115,369			$	3,806,049			$	309,320				8.1	%
Total loans			2,489,406				2,253,025				236,381				10.5	%
Total investments			1,112,992				781,637				331,355				42.4	%
Total deposits		$	3,543,423			$	3,276,470			$	266,953				8.1	%

Included in the changes in the Company’s deposits from December 31, 2014 to December 31, 2015 is the addition on September 16, 2015 of an additional $45 million certificate of deposit from the State of California, bringing the total of such certificates of deposits from the State of California to $50 million.

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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 December 31, 2015												Three Months Ended September 30, 2015												Three Months Ended December 31, 2014
		Average Balance				Income/ Expense				Yield/ Rate				Average Balance				Income/ Expense				Yield/ Rate				Average Balance				Income/ Expense				Yield/ Rate
Assets
Earning assets
Loans		$	2,489,406			$	34,838				5.60	%		$	2,427,670			$	33,814				5.57	%		$	2,253,025			$	30,736				5.46	%
Investments - taxable			1,044,063				6,983				2.68	%			1,028,931				6,923				2.69	%			763,131				5,197				2.72	%
Investments - nontaxable			68,929				841				4.88	%			64,914				797				4.91	%			18,506				219				4.73	%
Cash at Federal Reserve and other banks			174,746				143				0.33	%			95,397				97				0.41	%			477,958				337				0.28	%
Total earning assets			3,777,144				42,805				4.53	%			3,616,912				41,631				4.60	%			3,512,620				36,489				4.16	%
Other assets, net			338,225												336,380												293,429
Total assets		$	4,115,369											$	3,953,292											$	3,806,049
Liabilities and shareholders’ equity
Interest-bearing
Demand deposits		$	830,172				118				0.06	%		$	813,581				117				0.06	%		$	767,103				137				0.07	%
Savings deposits			1,231,687				388				0.13	%			1,178,684				368				0.12	%			1,140,817				360				0.13	%
Time deposits			347,742				337				0.39	%			324,427				353				0.44	%			360,788				455				0.50	%
Other borrowings			10,189				1				0.04	%			6,994				1				0.05	%			10,536				2				0.08	%
Trust preferred securities			56,345				505				3.59	%			56,394				500				3.55	%			53,750				483				3.59	%
Total interest-bearing liabilities			2,476,135				1,349				0.22	%			2,380,081				1,339				0.23	%			2,332,994				1,437				0.25	%
Noninterest-bearing deposits			1,133,822												1,073,537												1,007,762
Other liabilities			54,999												60,314												41,791
Shareholders’ equity			450,413												439,360												423,502
Total liabilities and shareholders’ equity		$	4,115,369											$	3,953,292											$	3,806,049
Net interest rate spread											4.31	%											4.37	%											3.91	%
Net interest income/net interest margin (FTE)							41,456				4.39	%							40,292				4.46	%							35,052				3.99	%
FTE adjustment							(315	)											(299	)											(82	)
Net interest income (not FTE)						$	41,141											$	39,993											$	34,970

Net interest income (FTE) during the three months ended December 31, 2015 increased $6,404,000 (18.3%) from the same period in 2014 to $41,456,000. The increase in net interest income (FTE) was due primarily to a $236,381,000 (13.5%) increase in the average balance of loans to $2,489,406,000, a $331,355,000 (42.4%) increase in the average balance of investments to $1,112,992,000, and a 14 basis point increase in the average yield on loans from 5.46% during the three months ended December 31, 2014 to 5.60% during the three months ended December 31, 2015. The $236,381,000 increase in average loan balances from the year ago quarter was due to organic loan growth during the quarter and twelve months ended December 31, 2015. The $331,355,000 increase in average investment balances from the year-ago quarter was primarily due to the use of cash at the Federal Reserve and other banks to purchase investments. Average deposit balances were $3,543,423 during the three months ended December 31, 2015, and represented a $266,953,000 (8.1%) increase in average deposit balances compared to the year-ago quarter. This increase in average deposit balances helped fund the increases in average loan and investment balances. The 14 basis point increase in average loan yields was due primarily to an increase in the accretion of loan purchase discounts into interest income and an increase in the recovery of interest income from paid off nonaccrual loans during the quarter ended December 31, 2015 compared to the year-ago quarter that were partially offset by declines in market yields on new and renewed loans compared to yields on repricing, maturing, and paid off loans. The increases in average loan and investment balances added $3,227,000 and $2,506,000, respectively, to net interest income (FTE) while the increases in average loan yields increased net interest income (FTE) by $875,000 compared to the year-ago quarter. Included in loan interest income during the three months ended December 31, 2015 was $2,267,000 of discount accretion from purchased loans compared to $1,853,000 of discount accretion from purchased loans during the three months ended December 31, 2014. The discount accretion of $2,267,000 and

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$1,853,000 added 37 and 33 basis points, respectively, to the average yield on loans during the three months ended December 31, 2015 and 2014, respectively. Also included in loan interest income during the three months ended December 31, 2015 was the recovery of $728,000 of loan interest income from the payoff of a single originated loan that was in interest nonaccrual status; and while recoveries of loan interest income from paid off nonaccrual loans occur from time to time, a recovery of this magnitude is unusual. The recovery of $728,000 of loan interest income added 12 basis points to the average yield on loans during the three months ended December 31, 2015.

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. Generally, as time goes on, the effect of this discount accretion decreases as these purchased loans mature or pay off early. 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 recorded a reversal of provision for loan losses of $908,000 during the three months ended December 31, 2015 compared to a reversal of provision for loan losses of $1,421,000 during the three months ended December 31, 2014. The $908,000 reversal of provision for loan losses during the three months ended December 31, 2015 was due to net recoveries of $401,000 and a $507,000 decrease in the required allowance for loan losses from $36,518,000 at September 30, 2015 to $36,011,000 at December 31, 2015. The decrease in the required allowance for loan losses was due primarily to the reduced impaired loans, improvements in estimated cash flows and collateral values for the remaining and newly impaired loans, and reductions in historical loss factors that was partially offset by a $53,371,000 increase in loan balances from $2,469,566,000 at September 30, 2015 to $2,522,937,000 at December 31, 2015. During the three months ended December 31, 2015, nonperforming loans decreased $1,779,000 (4.6%) to $37,119,000, and represented a decrease from 1.58% of loans outstanding as of September 30, 2015 to 1.47% of loans outstanding as of December 31, 2015.

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

 

		Three months ended December 31,
(dollars in thousands)		2015				2014				$ Change				% Change
Service charges on deposit accounts		$	3,397			$	3,512			($	115	)			(3.3	%)
ATM fees and interchange			3,376				3,117				259				8.3	%
Other service fees			712				608				104				17.1	%
Mortgage banking service fees			581				609				(28	)			(4.6	%)
Change in value of mortgage servicing rights			(131	)			(681	)			550				(80.8	%)
Total service charges and fees			7,935				7,165				770				10.7	%
Gain on sale of loans			883				545				338				62.0	%
Commission on NDIP			788				678				110				16.2	%
Increase in cash value of life insurance			665				666				(1	)			(0.2	%)
Change in indemnification asset			(59	)			(365	)			306				(83.8	%)
Gain on sale of foreclosed assets			209				300				(91	)			(30.3	%)
Other noninterest income			1,024				766				258				33.7	%
Total other noninterest income			3,510				2,590				920				35.5	%
Total noninterest income		$	11,445			$	9,755			$	1,690				17.3	%

As shown in the table above, noninterest income increased $1,690,000 (17.3%) to $11,445,000 during the three months ended December 31, 2015 compared to the three months ended December 31, 2014. The $550,000 improvement in change in value of mortgage servicing rights was primarily due to the relative change (increase or decrease) in mortgage rates during the three months ended December 31, 2015 compared to the three months ended December 31, 2014, and the impact those changes in mortgage rates had on the value of mortgage servicing rights during those periods. The $338,000 (62.0%) increase in gain on sale of loans was due to the volume of loans originated and sold, and the reduction in loans held for sale during the quarter compared to the year-ago quarter. The $306,000 improvement in change in indemnification asset was due to a decrease in the amount of assets covered

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by loss share agreements, and reduced changes in loss estimates related to those assets compared to the year-ago quarter. The $259,000 (8.3%) increase in ATM fees and interchange income was due primarily to an increase in interchange revenue. The $258,000 (33.7%) increase in other noninterest income was primarily due to $155,000 of insurance policy receivable in excess of cash value that occurred during the three months ended December 31, 2015.

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

 

		Three months ended December 31,
(dollars in thousands)		2015				2014				$ Change				% Change
Salaries		$	12,014			$	12,402			($	388	)			(3.1	%)
Commissions and incentives			2,304				1,475				829				56.2	%
Employee benefits			4,212				3,678				534				14.5	%
Total salaries and benefits expense			18,530				17,555				975				5.6	%
Occupancy			2,569				2,468				101				4.1	%
Equipment			1,639				1,423				216				15.2	%
Change in reserve for unfunded commitments			390				(200	)			590				(295.0	%)
Data processing and software			2,015				2,407				(392	)			(16.3	%)
Telecommunications			678				929				(251	)			(27.0	%)
ATM network charges			859				986				(127	)			(12.9	%)
Professional fees			1,392				1,096				296				27.0	%
Advertising and marketing			1,256				1,149				107				9.3	%
Postage			340				322				18				5.6	%
Courier service			350				328				22				6.7	%
Intangible amortization			290				289				1				0.3	%
Operational losses			263				299				(36	)			(12.0	%)
Provision for foreclosed asset losses			155				70				85				121.4	%
Foreclosed asset expense			185				125				60				48.0	%
Assessments			585				612				(27	)			(4.4	%)
Merger related expense			—				3,590				(3,590	)			(100.0	%)
Other			3,188				3,118				70				2.2	%
Total other noninterest expense			16,154				19,011				(2,857	)			(15.0	%)
Total noninterest expense		$	34,684			$	36,566			($	1,882	)			(5.1	%)
Average full time equivalent employees			952				957				(5	)			(0.5	%)
Merger & acquisition expense:
Incentive compensation			—				1,174
Benefits & other compensation			—				94
Data processing and software			—			$	415
Professional fees			—			$	1,357
Other			—				550
Total merger expense			—				3,590

Noninterest expense decreased $1,882,000 (5.1%) from $36,566,000 during the three months ended December 31, 2014 to $34,684,000 during the three months ended December 31, 2015. Included in noninterest expense during the three months ended December 31, 2015 and 2014 were merger expenses of $0 and $3,590,000, respectively, related to the North Valley merger that occurred on October 3, 2014. Excluding these merger expenses, noninterest expense would have increased $1,708,000 (5.2%) from $32,976,000 during the three months ended December 31, 2014.

Salary and benefit expenses increased $975,000 (5.6%) to $18,530,000 during the three months ended December 31, 2015 compared to the three months ended December 31, 2014. Salaries decreased $388,000 (3.1%) due to a $181,000 increase in deferred salary expense from increased loan production, and a $157,000 reduction in overtime and temporary help compared to the three months ended December 31, 2014. Commission and incentive expense increased $829,000 (56.2%) primarily due to increased commissions and incentives related to loan production. Employee benefits expense increased $534,000 (14.5%) primarily due to increased employee stock ownership, 401k matching, executive supplemental retirement, and employee medical insurance expense when compared to the year-ago quarter.

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Other noninterest expense decreased $2,857,000 (15.0%) to $16,154,000 during the three months ended December 31, 2015 compared to the three months ended December 31, 2014. Excluding $3,590,000 of merger expenses incurred during the three months ended December 31, 2014, other noninterest expense would have increased $733,00 (4.8%) from $15,421,000 during the three months ended December 31, 2014. The $590,000 increase in change in reserve for unfunded commitments was due to an increase in unused construction loan commitments during the three months ended December 31, 2015 compared to a reduction in unused loan commitments during the three months ended December 31, 2014. The $296,000 increase in professional fees was due primarily to increased legal fees. The decreases in data processing and software, telecommunications, and ATM network expenses of $392,000, $251,000 and $127,000, respectively, were due primarily to most of the efficiencies gained in these areas from the North Valley merger occurring during or after the three months ended December 31, 2014. The increases in occupancy and equipment expenses of $101,000 and $216,000, respectively, were due to increases in occupancy and equipment expenses at locations other than those locations closed as part of the North Valley merger.

As of March 31, 2015, the Company had substantially completed all of its previously planned facility consolidations related to the North Valley Bancorp acquisition. Subsequent to March 31, 2015, and following a thorough analysis of profitability and market opportunity, the Company identified five additional branches for closure. Two of those branches are former North Valley Bank branches. As of June 30, 2015 one of the five additional branches slated for closure has been consolidated into another branch and closed. As of August 31, 2015 the four remaining branches were consolidated into other branches and closed.

Richard Smith, President and CEO of the Company commented, “We are very pleased with our operating results for 2015. With the North Valley Bancorp acquisition now complete, our combined team of bankers are building strong pipelines of deposit and lending customers. This is evident by the increase in ending loans outstanding of $240.4 million or 10.5% and increases in ending deposits balances of $250.8 million or 7.4% in 2015. We also continue to realize increases in noninterest income related to customers increased usage of debit cards, real estate mortgage lending activities and investment sales. These increases demonstrate our continued efforts to deepen the number of products and services our customers purchase from us. We are encouraged and motivated by these results.”

Smith added, “While sales activities remain strong, our attention to operating efficiencies remains a priority. As a result, we will continue to invest into technologies that improve both the customer experience and our back office operations. Several projects including new mobile banking platforms and business on line programs are currently being implemented for our customers. Back office programs such as document imaging systems are also being implemented for process improvement purposes.”

On October 28, 2015, the Company announced that its subsidiary, Tri Counties Bank, has entered into an agreement to purchase three branches on the North Coast of California from Bank of America. The branches are located in the cities of Arcata, Eureka, and Fortuna in Humboldt County. TriCo anticipates assuming approximately $245 million in deposits and purchasing approximately $400 thousand in loans.

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, competition effects, fee and other noninterest income earned, 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, 2014. 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

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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
		December 31, 2015				September 30, 2015				June 30, 2015				March 31, 2015				December 31, 2014
Statement of Income Data
Interest income		$	42,490			$	41,332			$	39,867			$	37,725			$	36,407
Interest expense			1,349				1,339				1,346				1,382				1,437
Net interest income			41,141				39,993				38,521				36,343				34,970
(Benefit from) provision for loan losses			(908	)			(866	)			(633	)			197				(1,421	)
Noninterest income:
Service charges and fees			7,935				7,694				8,848				7,344				7,165
Other income			3,510				3,948				3,232				2,836				2,590
Total noninterest income			11,445				11,642				12,080				10,180				9,755
Noninterest expense:
Base salaries net of deferred loan origination costs			12,014				11,562				11,502				11,744				12,402
Incentive compensation expense			2,304				1,674				1,390				1,596				1,475
Employee benefits and other compensation expense			4,212				4,297				4,350				4,760				3,678
Total salaries and benefits expense			18,530				17,533				17,242				18,100				17,555
Other noninterest expense			16,154				13,906				15,194				14,182				19,011
Total noninterest expense			34,684				31,439				32,436				32,282				36,566
Income before taxes			18,810				21,062				18,798				14,044				9,580
Net income		$	11,422			$	12,694			$	11,366			$	8,336			$	5,650
Share Data
Basic earnings per share		$	0.50			$	0.56			$	0.50			$	0.37			$	0.25
Diluted earnings per share		$	0.50			$	0.55			$	0.49			$	0.36			$	0.25
Book value per common share		$	19.85			$	19.48			$	18.95			$	18.68			$	18.42
Tangible book value per common share		$	16.81			$	16.42			$	15.88			$	15.59			$	15.39
Shares outstanding			22,775,173				22,764,295				22,749,523				22,740,503				22,714,964
Weighted average shares			22,769,793				22,757,453				22,744,926				22,727,038				22,500,544
Weighted average diluted shares			23,055,900				23,005,980				22,980,033				22,949,902				22,726,795
Credit Quality
Nonperforming originated loans		$	22,824			$	24,052			$	23,812			$	34,576			$	32,529
Total nonperforming loans			37,119				38,898				39,880				49,217				47,589
Foreclosed assets, net of allowance			5,369				5,285				5,393				5,892				4,894
Loans charged-off			380				687				514				1,235				419
Loans recovered		$	781			$	2,616			$	547			$	508			$	505
Selected Financial Ratios
Return on average total assets			1.11	%			1.28	%			1.17	%			0.86	%			0.59	%
Return on average equity			10.14	%			11.56	%			10.56	%			7.85	%			5.34	%
Average yield on loans			5.60	%			5.57	%			5.44	%			5.46	%			5.46	%
Average yield on interest-earning assets			4.53	%			4.60	%			4.50	%			4.25	%			4.16	%
Average rate on interest-bearing liabilities			0.22	%			0.23	%			0.23	%			0.23	%			0.25	%
Net interest margin (fully tax-equivalent)			4.39	%			4.46	%			4.35	%			4.10	%			3.99	%
Supplemental Loan Interest Income Data:
Discount accretion PCI - cash basis loans		$	302			$	445			$	404			$	172			$	107
Discount accretion PCI - other loans			1,392				1,090				907				1,011				919
Discount accretion PNCI loans			573				1,590				822				1,348				827
All other loan interest income			32,571				30,689				29,886				28,371				28,883
Total loan interest income		$	34,838			$	33,814			$	32,019			$	31,165			$	30,736

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TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands)

 

		Three months ended
		December 31, 2015				September 30, 2015				June 30, 2015				March 31, 2015				December 31, 2014
Balance Sheet Data
Cash and due from banks		$	303,461			$	209,298			$	169,503			$	281,228			$	610,728
Securities, available for sale			404,885				329,361				284,430				225,126				83,205
Securities, held to maturity			726,530				751,051				776,283				802,482				676,426
Restricted equity securities			16,956				16,956				16,956				16,956				16,956
Loans held for sale			1,873				5,152				4,630				5,413				3,579
Loans:
Commercial loans			194,913				199,330				195,791				177,540				174,945
Consumer loans			395,283				403,081				411,788				410,727				417,084
Real estate mortgage loans			1,811,832				1,757,082				1,686,567				1,646,863				1,615,359
Real estate construction loans			120,909				110,073				99,616				85,753				75,136
Total loans, gross			2,522,937				2,469,566				2,393,762				2,320,883				2,282,524
Allowance for loan losses			(36,011	)			(36,518	)			(35,455	)			(36,055	)			(36,585	)
Foreclosed assets			5,369				5,285				5,393				5,892				4,894
Premises and equipment			43,811				42,334				42,056				42,846				43,493
Cash value of life insurance			94,560				94,458				93,687				93,012				92,337
Goodwill			63,462				63,462				63,462				63,462				63,462
Other intangible assets			5,894				6,184				6,473				6,762				7,051
Mortgage servicing rights			7,618				7,467				7,814				7,057				7,378
Accrued interest receivable			10,786				10,212				10,064				9,794				9,275
Other assets			48,591				47,360				54,797				51,002				51,735
Total assets		$	4,220,722				4,021,628				3,893,855				3,895,860				3,916,458
Deposits:
Noninterest-bearing demand deposits			1,155,695				1,100,607				1,060,650				1,034,012				1,083,900
Interest-bearing demand deposits			853,961				817,034				780,647				795,471				782,385
Savings deposits			1,281,540				1,187,238				1,179,836				1,172,257				1,156,126
Time certificates			340,070				352,993				320,549				347,748				358,012
Total deposits			3,631,266				3,457,872				3,341,682				3,349,488				3,380,423
Accrued interest payable			774				795				797				852				978
Reserve for unfunded commitments			2,475				2,085				2,125				2,015				2,145
Other liabilities			65,293				53,681				55,003				53,256				49,192
Other borrowings			12,328				6,859				6,735				9,096				9,276
Junior subordinated debt			56,470				56,991				56,369				56,320				56,272
Total liabilities			3,768,606				3,578,283				3,462,711				3,471,027				3,498,286
Total shareholders’ equity			452,116				443,345				431,144				424,833				418,172
Accumulated other comprehensive gain (loss)			(1,778	)			(2,298	)			(4,726	)			(2,083	)			(2,203	)
Average loans			2,489,406				2,427,670				2,355,864				2,283,622				2,253,025
Average interest-earning assets			3,777,144				3,616,912				3,563,925				3,557,103				3,512,620
Average total assets			4,115,369				3,953,292				3,894,196				3,892,476				3,806,049
Average deposits			3,543,423				3,390,229				3,347,874				3,350,370				3,276,470
Average total equity		$	450,413			$	439,360			$	430,601			$	424,701			$	423,502
Total risk based capital ratio			15.1	%			15.2	%			15.2	%			15.2	%			15.6	%
Tier 1 capital ratio			13.8	%			13.9	%			13.9	%			14.0	%			14.4	%
Tier 1 common equity ratio			12.2	%			12.3	%			12.2	%			12.1	%			n/a
Tier 1 leverage ratio			10.8	%			11.0	%			10.9	%			10.7	%			10.8	%
Tangible capital ratio			9.2	%			9.5	%			9.4	%			9.3	%			9.1	%