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TriCo Bancshares (TCBK) filed Quarterly Report for the period ended 2011-09-30.
Trico Bancshares has a market cap of $227.5 million; its shares were traded at around $14.24 with a P/E ratio of 15.1 and P/S ratio of 1.7. The dividend yield of Trico Bancshares stocks is 2.5%.
This is the annual revenues and earnings per share of TCBK over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of TCBK.
Highlight of Business Operations:
Much of the decrease in net interest margin for the three and nine month periods ended September 30, 2011 was due to the fact that despite historically low deposit rates, the ability to deploy deposits into some interest-earning asset other than short-term low-yield interest-earning cash at the Federal Reserve Bank has been limited. This limitation is the result of weak loan demand and investment yields that have been unattractive given their interest rate risk profile.Noninterest income increased $7,560,000 (105%) to $14,723,000 during the three months ended September 30, 2011 when compared to the three months ended September 30, 2010, primarily related to the bargain purchase gain on the Citizens acquisition. Service charges on deposit accounts were up $204,000 (5.7%) due to increases in most service charge fee types except consumer overdraft privilege fees which was essentially flat. ATM fees and interchange income was up $202,000 (12.8%) due to increased customer point-of-sale transactions that are the result of incentives for such usage. Overall, mortgage banking activities, which includes mortgage banking servicing fees, change in value of mortgage servicing rights, and gain on sale of loans, accounted for $173,000 of noninterest income during the three months ended September 30, 2011 compared to $803,000 during the three months ended September 30, 2010. Commissions on sale of nondeposit investment products increased $303,000 (127%) during the three months ended September 30, 2011 due to an increase in sales representatives. The change in indemnification asset of a negative $289,000 recorded during the three months ended September 30, 2011 is primarily due to a decrease in estimated loan losses from the loan portfolio and foreclosed assets acquired in the Granite acquisition on May 28, 2010, and the fact that such losses are generally “covered” at the rate of 80% by the FDIC. The actual decrease in estimated losses since June 30, 2011 is reflected in increased interest income, decreased provision for loan losses and/or decreased provision for foreclosed asset losses during the three months ended September 30, 2011. The Company recorded a bargain purchase gain of $7,575,000 related to the Citizens acquisition during the three months ended September 30, 2011.
Noninterest income increased $9,510,000 (41.7%) to $32,324,000 during the nine months ended September 30, 2011 when compared to the nine months ended September 30, 2010, primarily related to the bargain purchase gain on the Citizens acquisition. Service charges on deposit accounts were down $887,000 (7.5%) due to new overdraft regulations that became effective on July 1, 2010 and caused a decrease in non-sufficient funds fees. ATM fees and interchange income was up $724,000 (16.2%) due to increased customer point-of-sale transactions that are the result of incentives for such usage. Overall, mortgage banking activities, which includes mortgage banking servicing fees, change in value of mortgage servicing rights, and gain on sale of loans, accounted for $1,902,000 of noninterest income during the nine months ended September 30, 2011 compared to $1,970,000 during the nine months ended September 30, 2010. Commissions on sale of nondeposit investment products increased $682,000 (78.6%) during the nine months ended September 30, 2011 due to an increase in sales representatives. The change in indemnification asset of a $1,547,000 recorded during the nine months ended September 30, 2011 is primarily due to an increase in estimated loan losses from the loan portfolio and foreclosed assets acquired in the Granite acquisition on May 28, 2010, and the fact that such losses are generally “covered” at the rate of 80% by the FDIC. The actual increase in estimated losses since December 31, 2010 is reflected in decreased interest income, increased provision for loan losses and/or increased provision for foreclosed asset losses over the nine months ended September 30, 2011. The Company recorded a bargain purchase gain of $7,575,000 related to the Citizens acquisition during the nine months ended September 30, 2011, and a bargain purchase gain of $232,000 related to the Granite acquisition during the nine months ended September 30, 2010.
The Bank’s principal source of asset liquidity is cash at Federal Reserve and other banks and marketable investment securities available for sale. At September 30, 2011, cash at Federal Reserve and other banks and investment securities available for sale totaled $779,936,000, representing an increase of $131,599,000 (20.3%) from December 31, 2010, and includes $80,706,000 obatined in the Citizens acquisition on September 23, 2011. In addition, the Company generates additional liquidity from its operating activities. Excluding the effect of the $7,575,000 bargain purchase gain from the Citizens acquisition, the Company’s profitability during the first nine months of 2011 generated cash flows from operations of $30,242,000 compared to $34,516,000 during the first nine months of 2010. Additional cash flows may be provided by financing activities, primarily the acceptance of deposits and borrowings from banks. Maturities of investment securities produced cash inflows of $57,479,000 during the nine months ended September 30, 2011 compared to $67,310,000 for the nine months ended September 30, 2010. During the nine months ended September 30, 2011, the Company invested $25,456,000 in securities and $9,112,000 in net loan principal reductions, compared to $101,255,000 invested in securities and received $75,117,000 from net loan principal reductions, respectively, during the first nine months of 2010. Excluding the $80,706,000 obtained in the Citizens acquisition on September 23, 2011 and the $18,764,000 obatined in the Granite acquisition on May 28, 2010, these changes in investment and loan balances contributed to net cash provided by investing activities of $25,510,000 during the nine months ended September 30, 2011, compared to net cash provided by investing activities of $42,527,000 during the nine months ended September 30, 2010. Financing activities provided net cash of $22,687,000 during the nine months ended September 30, 2011, compared to net cash used by financing activities of $44,205,000 during the nine months ended September 30, 2010. Deposit balance increases accounted for $28,151,000 of financing source of funds during the nine months ended September 30, 2011, compared to $34,972,000 of financing uses of funds during the nine months ended September 30, 2010. A net decrease in short-term other borrowings accounted for $1,139,000 of financing uses of funds during the nine months ended September 30, 2011, compared to $4,571,000 of funds used to decrease short-term other borrowings during the nine months ended September 30, 2010. Dividends paid used $4,304,000 and $4,917,000 of cash during the nine months ended September 30, 2011 and 2010, respectively. Also, the Company’s liquidity is dependent on dividends received from the Bank. Dividends from the Bank are subject to certain regulatory restrictions.
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