TriCo Bancshares (TCBK, Financial) filed Quarterly Report for the period ended 2009-03-31.
TriCo Bancshares is a bank holding company for Tri Counties Bank. The Bank conducts a commercial banking business including accepting demandsavings and time deposits and making commercial real estate and consumer loans. TriCo Bancshares has a market cap of $271.3 million; its shares were traded at around $17.19 with a P/E ratio of 17.8 and P/S ratio of 1.9. The dividend yield of TriCo Bancshares stocks is 3%. TriCo Bancshares had an annual average earning growth of 16.4% over the past 5 years.
Interest and fee income (FTE) for the first quarter of 2009 decreased $2,248,000
(7.2%) from the first quarter of 2008. The decrease was due to a 0.74% decrease
in the average yield on those interest-earning assets to 6.15% that was
partially offset by a $69,909,000 (3.9%) increase in average balances of
interest-earning assets to $1,887,121,000. The growth in interest-earning assets
was the result of a $45,379,000 increase in average balance of interest-earning
cash at Federal Reserve and other bank and a $30,993,000 (2.0%) increase in
average loan balances to $1,566,350 from the year-ago quarter. The decrease in
the average yield on interest-earning assets was primarily due to a 4.00%
decrease in the prime rate of lending from 7.25% at December 31, 2007 to 3.25%
at December 31, 2008. Interest rate floors in most of the Company's variable
rate loans mitigated the effect of the decrease in the prime rate of lending and
other variable rate indices during this period.
Interest Expense
Interest expense decreased $3,881,000 (39.7%) in the first quarter of 2009
compared to the prior year quarter. The decrease was primarily due to a 1.15%
decrease in the average rate paid on interest-bearing liabilities from 2.78% in
the first quarter of 2008 to 1.63% in the first quarter of 2009. The average
balance of interest-bearing liabilities was up $34,623,000 (2.5%) to
$1,441,816,000 in the quarter ended March 31, 2009 from the year-ago quarter.
The average rates paid for all categories of interest-bearing liabilities were
down except for the average rate paid on interest-bearing demand deposits.
Three months ended
March 31,
-
2009 2008
-
Yield on interest-earning assets 6.15% 6.89%
Rate paid on interest-bearing liabilities 1.63% 2.78%
-
Net interest spread 4.52% 4.11%
Impact of all other net
noninterest-bearing funds 0.39% 0.63%
-
Net interest margin 4.91% 4.74%
=
Summary of Average Balances, Yields/Rates and Interest Differential
The following table presents, for the periods indicated, information regarding
the Company's consolidated average assets, liabilities and shareholders' equity,
the amounts of interest income from average interest-earning assets and
resulting yields, and the amount of interest expense paid on interest-bearing
liabilities. Average loan balances include nonperforming loans. Interest income
includes proceeds from loans on nonaccrual loans only to the extent cash
payments have been received and applied to interest income. Yields on securities
and certain loans have been adjusted upward to reflect the effect of income
thereon exempt from federal income taxation at the current statutory tax rate
(dollars in thousands).
For the three months ended
-
March 31, 2009 March 31, 2008
- -
Interest Rates Interest Rates
Average Income/ Earned Average Income/ Earned
Balance Expense Paid Balance Expense Paid
- -
Assets:
Loans $1,566,350 $25,513 6.52% $1,535,357 $27,726 7.22%
Investment securities - taxable 252,431 3,083 4.89% 254,778 3,078 4.83%
Investment securities - nontaxable 22,609 417 7.38% 26,725 505 7.57%
Cash at Federal Reserve and other banks 45,731 22 0.19% 352 2 2.27%
- -
Total interest-earning assets 1,887,121 29,035 6.15% 1,817,212 31,311 6.89%
Other assets 162,072 171,454
- -
Total assets 2,049,193 1,988,666
= =
Liabilities and shareholders' equity:
Interest-bearing demand deposits 258,137 342 0.53% 218,487 87 0.16%
Savings deposits 408,749 893 0.87% 387,490 1,502 1.55%
Time deposits 655,343 3,967 2.42% 551,420 5,588 4.05%
Federal funds purchased - - - 103,565 812 3.14%
Other borrowings 78,349 242 1.24% 104,993 1,063 4.05%
Junior subordinated debt 41,238 440 4.27% 41,238 713 6.92%
- -
Total interest-bearing liabilities 1,441,816 5,884 1.63% 1,407,193 9,765 2.78%
Noninterest-bearing deposits 366,475 354,207
Other liabilities 38,776 33,817
Shareholders' equity 202,126 193,449
Total liabilities and shareholders' equity $2,049,193 $1,988,666
= =
Net interest spread(1) 4.52% 4.11%
Net interest income and interest margin(2) $23,151 4.91% $21,546 4.74%
= =
Nonperforming loans to total loans 2.19% 1.73%
Nonperforming assets to total assets 1.77% 1.41%
Allowance for loan losses/nonperforming loans 95% 100%
At March 31, At Minimum
- December 31, Regulatory
2009 2008 2008 Requirement
-
Tier I Capital 11.42% 10.88% 11.17% 4.00%
Total Capital 12.68% 12.02% 12.42% 8.00%
Leverage ratio 10.86% 10.77% 11.09% 4.00%
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TriCo Bancshares is a bank holding company for Tri Counties Bank. The Bank conducts a commercial banking business including accepting demandsavings and time deposits and making commercial real estate and consumer loans. TriCo Bancshares has a market cap of $271.3 million; its shares were traded at around $17.19 with a P/E ratio of 17.8 and P/S ratio of 1.9. The dividend yield of TriCo Bancshares stocks is 3%. TriCo Bancshares had an annual average earning growth of 16.4% over the past 5 years.
Highlight of Business Operations:
Interest and Fee IncomeInterest and fee income (FTE) for the first quarter of 2009 decreased $2,248,000
(7.2%) from the first quarter of 2008. The decrease was due to a 0.74% decrease
in the average yield on those interest-earning assets to 6.15% that was
partially offset by a $69,909,000 (3.9%) increase in average balances of
interest-earning assets to $1,887,121,000. The growth in interest-earning assets
was the result of a $45,379,000 increase in average balance of interest-earning
cash at Federal Reserve and other bank and a $30,993,000 (2.0%) increase in
average loan balances to $1,566,350 from the year-ago quarter. The decrease in
the average yield on interest-earning assets was primarily due to a 4.00%
decrease in the prime rate of lending from 7.25% at December 31, 2007 to 3.25%
at December 31, 2008. Interest rate floors in most of the Company's variable
rate loans mitigated the effect of the decrease in the prime rate of lending and
other variable rate indices during this period.
Interest Expense
Interest expense decreased $3,881,000 (39.7%) in the first quarter of 2009
compared to the prior year quarter. The decrease was primarily due to a 1.15%
decrease in the average rate paid on interest-bearing liabilities from 2.78% in
the first quarter of 2008 to 1.63% in the first quarter of 2009. The average
balance of interest-bearing liabilities was up $34,623,000 (2.5%) to
$1,441,816,000 in the quarter ended March 31, 2009 from the year-ago quarter.
The average rates paid for all categories of interest-bearing liabilities were
down except for the average rate paid on interest-bearing demand deposits.
Three months ended
March 31,
-
2009 2008
-
Yield on interest-earning assets 6.15% 6.89%
Rate paid on interest-bearing liabilities 1.63% 2.78%
-
Net interest spread 4.52% 4.11%
Impact of all other net
noninterest-bearing funds 0.39% 0.63%
-
Net interest margin 4.91% 4.74%
=
Summary of Average Balances, Yields/Rates and Interest Differential
The following table presents, for the periods indicated, information regarding
the Company's consolidated average assets, liabilities and shareholders' equity,
the amounts of interest income from average interest-earning assets and
resulting yields, and the amount of interest expense paid on interest-bearing
liabilities. Average loan balances include nonperforming loans. Interest income
includes proceeds from loans on nonaccrual loans only to the extent cash
payments have been received and applied to interest income. Yields on securities
and certain loans have been adjusted upward to reflect the effect of income
thereon exempt from federal income taxation at the current statutory tax rate
(dollars in thousands).
For the three months ended
-
March 31, 2009 March 31, 2008
- -
Interest Rates Interest Rates
Average Income/ Earned Average Income/ Earned
Balance Expense Paid Balance Expense Paid
- -
Assets:
Loans $1,566,350 $25,513 6.52% $1,535,357 $27,726 7.22%
Investment securities - taxable 252,431 3,083 4.89% 254,778 3,078 4.83%
Investment securities - nontaxable 22,609 417 7.38% 26,725 505 7.57%
Cash at Federal Reserve and other banks 45,731 22 0.19% 352 2 2.27%
- -
Total interest-earning assets 1,887,121 29,035 6.15% 1,817,212 31,311 6.89%
Other assets 162,072 171,454
- -
Total assets 2,049,193 1,988,666
= =
Liabilities and shareholders' equity:
Interest-bearing demand deposits 258,137 342 0.53% 218,487 87 0.16%
Savings deposits 408,749 893 0.87% 387,490 1,502 1.55%
Time deposits 655,343 3,967 2.42% 551,420 5,588 4.05%
Federal funds purchased - - - 103,565 812 3.14%
Other borrowings 78,349 242 1.24% 104,993 1,063 4.05%
Junior subordinated debt 41,238 440 4.27% 41,238 713 6.92%
- -
Total interest-bearing liabilities 1,441,816 5,884 1.63% 1,407,193 9,765 2.78%
Noninterest-bearing deposits 366,475 354,207
Other liabilities 38,776 33,817
Shareholders' equity 202,126 193,449
Total liabilities and shareholders' equity $2,049,193 $1,988,666
= =
Net interest spread(1) 4.52% 4.11%
Net interest income and interest margin(2) $23,151 4.91% $21,546 4.74%
= =
Nonperforming loans to total loans 2.19% 1.73%
Nonperforming assets to total assets 1.77% 1.41%
Allowance for loan losses/nonperforming loans 95% 100%
At March 31, At Minimum
- December 31, Regulatory
2009 2008 2008 Requirement
-
Tier I Capital 11.42% 10.88% 11.17% 4.00%
Total Capital 12.68% 12.02% 12.42% 8.00%
Leverage ratio 10.86% 10.77% 11.09% 4.00%
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