TriCo Bancshares (TCBK, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $270.2 million; its shares were traded at around $17.12 with a P/E ratio of 17.3 and P/S ratio of 1.8. 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.
$4,202,000 (6.8%) from the same period of 2008. The decrease was due to a 0.77%
decrease in the yield on average interest-earning assets to 6.03% that was
partially offset by a $92,160,000 (5.1%) increase in average interest-earning
assets to $1,910,377,000. The growth in interest-earning assets was primarily
due to a $20,257,000 (1.3%) increase in average loan balances to $1,561,064,000,
and a $77,592,000 increase in average balance of interest-earning cash at the
Federal Reserve and other banks. The decrease in the yield on average
interest-earning assets was mainly due to a 0.61% decrease in yield on loans to
6.50% and the large increase in interest-bearing cash balances that earned only
0.20% during the six months ended June 30, 2009. The decrease in loan yields
from the six months ended June 30, 2009 was mainly due to a 4.00% decrease in
the prime lending rate from 7.25% at December 31, 2007 to 3.25% at June 30,
2009.
Three months ended Six months ended
June 30, June 30,
-
2009 2008 2009 2008
-
Yield on interest-earning assets 5.91% 6.71% 6.03% 6.80%
Rate paid on interest-bearing
Liabilities 1.42% 2.11% 1.52% 2.44%
-
Net interest spread 4.49% 4.60% 4.51% 4.36%
Impact of all other net
noninterest-bearing funds 0.33% 0.46% 0.35% 0.54%
-
Net interest margin 4.82% 5.06% 4.86% 4.90%
=
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
-
June 30, 2009 June 30, 2008
- -
Interest Rates Interest Rates
Average Income/ Earned Average Income/ Earned
Balance Expense Paid Balance Expense Paid
- -
Assets:
Loans $1,555,778 $25,218 6.48% $1,546,257 $27,015 6.99%
Investment securities - taxable 245,489 2,896 4.72% 247,508 3,017 4.88%
Investment securities - nontaxable 22,407 405 7.23% 25,303 467 7.38%
Cash at Federal Reserve and other banks 109,959 55 0.20% 154 1 1.71%
- -
Total interest-earning assets 1,933,633 28,574 5.91% 1,819,222 30,500 6.71%
- -
Other assets 155,242 167,452
- -
Total assets $2,088,875 $1,986,674
= =
Liabilities and shareholders\' equity:
Interest-bearing demand deposits $283,777 $444 0.63% $215,661 $134 0.25%
Savings deposits 425,759 759 0.71% 392,938 1,172 1.19%
Time deposits 664,863 3,575 2.15% 551,574 4,344 3.15%
Federal funds purchased - - - 130,263 711 2.18%
Other borrowings 73,565 112 0.61% 84,691 524 2.47%
Junior subordinated debt 41,238 396 3.84% 41,238 586 5.68%
- -
Total interest-bearing liabilities 1,489,202 5,286 1.42% 1,416,365 7,471 2.11%
- -
Noninterest-bearing deposits 361,035 347,079
Other liabilities 35,042 31,225
Shareholders\' equity 203,596 192,005
- -
Total liabilities and shareholders\' equity $2,088,875 $1,986,674
= =
Net interest spread(1) 4.49% 4.60%
Net interest income and interest margin(2) $23,288 4.82% $23,029 5.06%
= =
For the six months ended
-
June 30, 2009 June 30, 2008
- -
Interest Rates Interest Rates
Average Income/ Earned Average Income/ Earned
Balance Expense Paid Balance Expense Paid
- -
Assets:
Loans $1,561,064 $50,731 6.50% $1,540,807 $54,741 7.11%
Investment securities - taxable 248,960 5,979 4.80% 251,143 6,095 4.85%
Investment securities - nontaxable 22,508 822 7.31% 26,014 972 7.47%
Cash at Federal Reserve and other banks 77,845 77 0.20% 253 3 2.37%
- -
Total interest-earning assets 1,910,377 57,609 6.03% 1,818,217 61,811 6.80%
- -
Other assets 158,657 169,453
- -
Total assets $2,069,034 $1,987,670
= =
Liabilities and shareholders\' equity:
Interest-bearing demand deposits $270,957 $786 0.58% $217,074 $221 0.20%
Savings deposits 417,254 1,652 0.79% 390,214 2,674 1.37%
Time deposits 660,103 7,542 2.29% 551,497 9,932 3.60%
Federal funds purchased - - - 116,914 1,523 2.61%
Other borrowings 75,957 354 0.93% 94,842 1,587 3.35%
Junior subordinated debt 41,238 836 4.05% 41,238 1,299 6.30%
- -
Total interest-bearing liabilities 1,465,509 11,170 1.52% 1,411,779 17,236 2.44%
- -
Noninterest-bearing deposits 363,755 350,643
Other liabilities 36,909 32,521
Shareholders\' equity 202,861 192,727
- -
Total liabilities and shareholders\' equity $2,069,034 $1,987,670
= =
Net interest spread(1) 4.51% 4.36%
Net interest income and interest margin(2) $46,439 4.86% $44,575 4.90%
= =
(1) Net interest spread represents the average yield earned on interest-earning
assets minus the average rate paid on interest-bearing liabilities.
(2) Net interest margin is computed by calculating the difference between
interest income and expense, divided by the average balance of
interest-earning assets.
As shown in the following table, total nonperforming assets net of guarantees of
the U.S. Government, including its agencies and its government-sponsored
agencies, increased $17,285,000 (60%) to $45,995,000 during the first six months
of 2009. Nonperforming assets net of guarantees represent 2.20% of total assets.
All nonaccrual loans are considered to be impaired when determining the need for
a specific valuation allowance. The Company continues to make a concerted effort
to work problem and potential problem loans to reduce risk of loss.
At June 30, 2009 At December 31, 2008
- -
Gross Guaranteed Net Gross Guaranteed Net
-
(dollars in thousands):
Performing nonaccrual loans $24,886 $4,884 $19,982 $22,600 $5,102 $17,498
Nonperforming, nonaccrual loans 21,321 - 21,321 9,994 154 9,840
-
Total nonaccrual loans 46,187 4,884 41,303 32,594 5,256 27,338
Loans 90 days past due and still accruing 2,070 - 2,070 187 - 187
-
Total nonperforming loans 48,257 4,884 43,373 32,781 5,256 27,525
Other real estate owned 2,622 - 2,622 1,185 - 1,185
-
Total nonperforming assets $50,879 $4,884 $45,995 $33,966 $5,256 $28,710
=
Nonperforming loans to total loans 2.79% 1.73%
Nonperforming assets to total assets 2.20% 1.41%
Allowance for loan losses/nonperforming loans 78% 100%
At June 30, At Minimum
- December 31, Regulatory
2009 2008 2008 Requirement
-
Tier I Capital 11.61% 11.01% 11.17% 4.00%
Total Capital 12.87% 12.26% 12.42% 8.00%
Leverage ratio 10.68% 10.80% 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 $270.2 million; its shares were traded at around $17.12 with a P/E ratio of 17.3 and P/S ratio of 1.8. 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 income (FTE) for the six months ended June 30, 2009 decreased$4,202,000 (6.8%) from the same period of 2008. The decrease was due to a 0.77%
decrease in the yield on average interest-earning assets to 6.03% that was
partially offset by a $92,160,000 (5.1%) increase in average interest-earning
assets to $1,910,377,000. The growth in interest-earning assets was primarily
due to a $20,257,000 (1.3%) increase in average loan balances to $1,561,064,000,
and a $77,592,000 increase in average balance of interest-earning cash at the
Federal Reserve and other banks. The decrease in the yield on average
interest-earning assets was mainly due to a 0.61% decrease in yield on loans to
6.50% and the large increase in interest-bearing cash balances that earned only
0.20% during the six months ended June 30, 2009. The decrease in loan yields
from the six months ended June 30, 2009 was mainly due to a 4.00% decrease in
the prime lending rate from 7.25% at December 31, 2007 to 3.25% at June 30,
2009.
Three months ended Six months ended
June 30, June 30,
-
2009 2008 2009 2008
-
Yield on interest-earning assets 5.91% 6.71% 6.03% 6.80%
Rate paid on interest-bearing
Liabilities 1.42% 2.11% 1.52% 2.44%
-
Net interest spread 4.49% 4.60% 4.51% 4.36%
Impact of all other net
noninterest-bearing funds 0.33% 0.46% 0.35% 0.54%
-
Net interest margin 4.82% 5.06% 4.86% 4.90%
=
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
-
June 30, 2009 June 30, 2008
- -
Interest Rates Interest Rates
Average Income/ Earned Average Income/ Earned
Balance Expense Paid Balance Expense Paid
- -
Assets:
Loans $1,555,778 $25,218 6.48% $1,546,257 $27,015 6.99%
Investment securities - taxable 245,489 2,896 4.72% 247,508 3,017 4.88%
Investment securities - nontaxable 22,407 405 7.23% 25,303 467 7.38%
Cash at Federal Reserve and other banks 109,959 55 0.20% 154 1 1.71%
- -
Total interest-earning assets 1,933,633 28,574 5.91% 1,819,222 30,500 6.71%
- -
Other assets 155,242 167,452
- -
Total assets $2,088,875 $1,986,674
= =
Liabilities and shareholders\' equity:
Interest-bearing demand deposits $283,777 $444 0.63% $215,661 $134 0.25%
Savings deposits 425,759 759 0.71% 392,938 1,172 1.19%
Time deposits 664,863 3,575 2.15% 551,574 4,344 3.15%
Federal funds purchased - - - 130,263 711 2.18%
Other borrowings 73,565 112 0.61% 84,691 524 2.47%
Junior subordinated debt 41,238 396 3.84% 41,238 586 5.68%
- -
Total interest-bearing liabilities 1,489,202 5,286 1.42% 1,416,365 7,471 2.11%
- -
Noninterest-bearing deposits 361,035 347,079
Other liabilities 35,042 31,225
Shareholders\' equity 203,596 192,005
- -
Total liabilities and shareholders\' equity $2,088,875 $1,986,674
= =
Net interest spread(1) 4.49% 4.60%
Net interest income and interest margin(2) $23,288 4.82% $23,029 5.06%
= =
For the six months ended
-
June 30, 2009 June 30, 2008
- -
Interest Rates Interest Rates
Average Income/ Earned Average Income/ Earned
Balance Expense Paid Balance Expense Paid
- -
Assets:
Loans $1,561,064 $50,731 6.50% $1,540,807 $54,741 7.11%
Investment securities - taxable 248,960 5,979 4.80% 251,143 6,095 4.85%
Investment securities - nontaxable 22,508 822 7.31% 26,014 972 7.47%
Cash at Federal Reserve and other banks 77,845 77 0.20% 253 3 2.37%
- -
Total interest-earning assets 1,910,377 57,609 6.03% 1,818,217 61,811 6.80%
- -
Other assets 158,657 169,453
- -
Total assets $2,069,034 $1,987,670
= =
Liabilities and shareholders\' equity:
Interest-bearing demand deposits $270,957 $786 0.58% $217,074 $221 0.20%
Savings deposits 417,254 1,652 0.79% 390,214 2,674 1.37%
Time deposits 660,103 7,542 2.29% 551,497 9,932 3.60%
Federal funds purchased - - - 116,914 1,523 2.61%
Other borrowings 75,957 354 0.93% 94,842 1,587 3.35%
Junior subordinated debt 41,238 836 4.05% 41,238 1,299 6.30%
- -
Total interest-bearing liabilities 1,465,509 11,170 1.52% 1,411,779 17,236 2.44%
- -
Noninterest-bearing deposits 363,755 350,643
Other liabilities 36,909 32,521
Shareholders\' equity 202,861 192,727
- -
Total liabilities and shareholders\' equity $2,069,034 $1,987,670
= =
Net interest spread(1) 4.51% 4.36%
Net interest income and interest margin(2) $46,439 4.86% $44,575 4.90%
= =
(1) Net interest spread represents the average yield earned on interest-earning
assets minus the average rate paid on interest-bearing liabilities.
(2) Net interest margin is computed by calculating the difference between
interest income and expense, divided by the average balance of
interest-earning assets.
As shown in the following table, total nonperforming assets net of guarantees of
the U.S. Government, including its agencies and its government-sponsored
agencies, increased $17,285,000 (60%) to $45,995,000 during the first six months
of 2009. Nonperforming assets net of guarantees represent 2.20% of total assets.
All nonaccrual loans are considered to be impaired when determining the need for
a specific valuation allowance. The Company continues to make a concerted effort
to work problem and potential problem loans to reduce risk of loss.
At June 30, 2009 At December 31, 2008
- -
Gross Guaranteed Net Gross Guaranteed Net
-
(dollars in thousands):
Performing nonaccrual loans $24,886 $4,884 $19,982 $22,600 $5,102 $17,498
Nonperforming, nonaccrual loans 21,321 - 21,321 9,994 154 9,840
-
Total nonaccrual loans 46,187 4,884 41,303 32,594 5,256 27,338
Loans 90 days past due and still accruing 2,070 - 2,070 187 - 187
-
Total nonperforming loans 48,257 4,884 43,373 32,781 5,256 27,525
Other real estate owned 2,622 - 2,622 1,185 - 1,185
-
Total nonperforming assets $50,879 $4,884 $45,995 $33,966 $5,256 $28,710
=
Nonperforming loans to total loans 2.79% 1.73%
Nonperforming assets to total assets 2.20% 1.41%
Allowance for loan losses/nonperforming loans 78% 100%
At June 30, At Minimum
- December 31, Regulatory
2009 2008 2008 Requirement
-
Tier I Capital 11.61% 11.01% 11.17% 4.00%
Total Capital 12.87% 12.26% 12.42% 8.00%
Leverage ratio 10.68% 10.80% 11.09% 4.00%
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