4Q25 Financial Highlights
- Net income was $33.6 million or $1.03 per diluted share as compared to $34.0 million or $1.04 per diluted share in the trailing quarter, and an increase of $4.6 million or 15.8% from the fourth quarter of 2024
- Net interest income (FTE) was $92.5 million, an increase of $2.7 million or 2.97% over the trailing quarter; net interest margin (FTE) was 4.02% in the recent quarter, an increase of 10 basis points over 3.92% in the trailing quarter
- Loan balances increased $104.3 million or 6.0% (annualized) from the trailing quarter and increased $342.6 million or 5.1% from the same quarter of the prior year
- Deposit balances decreased $70.6 million or 3.4% (annualized) from the trailing quarter and increased $176.3 million or 2.2% from the same quarter of the prior year. One-way sell deposit balances totaled $72.9 million at quarter end, as compared to zero for both the trailing quarter and same quarter of the prior year
- Average non-interest bearing deposits grew by 2.1% (annualized) and were 31.0% of total deposits during the quarter
- Yield on average earning assets was 5.23%, a decrease of 2 basis points over the 5.25% in the trailing quarter; yield on average loans was 5.77%, an increase of 2 basis points over the 5.75% in the trailing quarter
- The average cost of total deposits was 1.29%, an decrease of 10 basis points as compared to 1.39% in the trailing quarter, and a decrease of 17 basis points from 1.46% in the same quarter of the prior year
CHICO, Calif.–(BUSINESS WIRE)–$TCBK #CommunityBank–TriCo Bancshares (NASDAQ: TCBK):
Executive Commentary:
“The strong performance trajectory which we close 2025 and start 2026 gives us good reason to be optimistic about our future. TriCo’s foundation, built with exceptional employees and customers, consistently allows us to navigate a broad range of challenges and opportunities with confidence. Execution of our long-term strategies remain our primary focus, and we believe that alignment between the current economic outlook and our market positioning will be beneficial to the realization of our priorities,” said Rick Smith, Chairman and CEO.
Peter Wiese, EVP and CFO added, “The expansion of both net interest income and net interest margin, despite recent Federal Funds rate cuts, was certainly a highlight of the quarter and, given the slope of the yield curve, we continue to expect incremental improvement through 2026. While we also held expense growth to a minimum during 2025 (approximately 3%), year over year expense growth in 2026 is likely to accelerate (5%), but should still allow for positive operating leverage.”
Selected Financial Highlights
- For the quarter ended December 31, 2025, the Company’s return on average assets was 1.34%, while the return on average equity was 10.02%; for the trailing quarter ended September 30, 2025, the Company’s return on average assets was 1.36%, while the return on average equity was 10.47%
- Diluted earnings per share were $1.03 for the fourth quarter of 2025, compared to $1.04 for the trailing quarter and $0.88 during the fourth quarter of 2024
- The loan to deposit ratio was 86.05% as of December 31, 2025, as compared to 84.07% for the trailing quarter end. Management seeks to maintain this ratio within a range of 83.0% to 90.0% for purposes of revenue generation enhancement.
- The efficiency ratio was 54.68% for the quarter ended December 31, 2025, as compared to 56.18% for the trailing quarter
- The provision for credit losses was $3.0 million during the quarter ended December 31, 2025, as compared to $0.7 million during the trailing quarter
- The allowance for credit losses (ACL) to total loans was 1.77% as of December 31, 2025, compared to 1.78% as of the trailing quarter end, and 1.85% as of December 31, 2024. Non-performing assets to total assets were 0.72% on December 31, 2025, as compared to 0.72% as of September 30, 2025, and 0.48% at December 31, 2024. At December 31, 2025, the ACL represented 196% of non-performing loans
The financial results reported in this document are preliminary and unaudited. Final financial results and other disclosures will be reported on Form 10-K for the period ended December 31, 2025, 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.
Operating Results and Performance Ratios
|
Three months ended |
|
|
|
|
||||||||||
|
|
December 31, |
|
September 30, |
|
|
|
|
|||||||
|
(dollars and shares in thousands, except per share data) |
|
|
$ Change |
|
% Change |
|||||||||
|
Net interest income |
$ |
92,227 |
|
|
$ |
89,555 |
|
|
$ |
2,672 |
|
|
3.0 |
% |
|
Provision for credit losses |
|
(3,000 |
) |
|
|
(670 |
) |
|
|
(2,330 |
) |
|
347.8 |
% |
|
Noninterest income |
|
17,168 |
|
|
|
18,007 |
|
|
|
(839 |
) |
|
(4.7 |
)% |
|
Noninterest expense |
|
(59,819 |
) |
|
|
(60,424 |
) |
|
|
605 |
|
|
(1.0 |
)% |
|
Provision for income taxes |
|
(12,942 |
) |
|
|
(12,449 |
) |
|
|
(493 |
) |
|
4.0 |
% |
|
Net income |
$ |
33,634 |
|
|
$ |
34,019 |
|
|
$ |
(385 |
) |
|
(1.1 |
)% |
|
Diluted earnings per share |
$ |
1.03 |
|
|
$ |
1.04 |
|
|
$ |
(0.01 |
) |
|
(1.0 |
)% |
|
Dividends per share |
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
— |
|
|
— |
% |
|
Average common shares |
|
32,445 |
|
|
|
32,542 |
|
|
|
(97 |
) |
|
(0.3 |
)% |
|
Average diluted common shares |
|
32,631 |
|
|
|
32,723 |
|
|
|
(92 |
) |
|
(0.3 |
)% |
|
Return on average total assets |
|
1.34 |
% |
|
|
1.36 |
% |
|
|
|
|
|||
|
Return on average equity |
|
10.02 |
% |
|
|
10.47 |
% |
|
|
|
|
|||
|
Efficiency ratio |
|
54.68 |
% |
|
|
56.18 |
% |
|
|
|
|
|||
|
|
Three months ended |
|
|
|
|
|||||||||
|
(dollars and shares in thousands, except per share data) |
|
2025 |
|
|
|
2024 |
|
|
$ Change |
|
% Change |
|||
|
Net interest income |
$ |
92,227 |
|
|
$ |
84,090 |
|
|
$ |
8,137 |
|
|
9.7 |
% |
|
Provision for credit losses |
|
(3,000 |
) |
|
|
(1,702 |
) |
|
|
(1,298 |
) |
|
76.3 |
% |
|
Noninterest income |
|
17,168 |
|
|
|
16,275 |
|
|
|
893 |
|
|
5.5 |
% |
|
Noninterest expense |
|
(59,819 |
) |
|
|
(59,775 |
) |
|
|
(44 |
) |
|
0.1 |
% |
|
Provision for income taxes |
|
(12,942 |
) |
|
|
(9,854 |
) |
|
|
(3,088 |
) |
|
31.3 |
% |
|
Net income |
$ |
33,634 |
|
|
$ |
29,034 |
|
|
$ |
4,600 |
|
|
15.8 |
% |
|
Diluted earnings per share |
$ |
1.03 |
|
|
$ |
0.88 |
|
|
$ |
0.15 |
|
|
17.0 |
% |
|
Dividends per share |
$ |
0.36 |
|
|
$ |
0.33 |
|
|
$ |
0.03 |
|
|
9.1 |
% |
|
Average common shares |
|
32,445 |
|
|
|
32,994 |
|
|
|
(549 |
) |
|
(1.7 |
)% |
|
Average diluted common shares |
|
32,631 |
|
|
|
33,162 |
|
|
|
(531 |
) |
|
(1.6 |
)% |
|
Return on average total assets |
|
1.34 |
% |
|
|
1.19 |
% |
|
|
|
|
|||
|
Return on average equity |
|
10.02 |
% |
|
|
9.30 |
% |
|
|
|
|
|||
|
Efficiency ratio |
|
54.68 |
% |
|
|
59.56 |
% |
|
|
|
|
|||
|
|
Twelve months ended |
|
|
|||||||||||
|
(dollars and shares in thousands, except per share data) |
|
2025 |
|
|
|
2024 |
|
|
$ Change |
|
% Change |
|||
|
Net interest income |
$ |
350,843 |
|
|
$ |
331,434 |
|
|
$ |
19,409 |
|
|
5.9 |
% |
|
Provision for credit losses |
|
(12,063 |
) |
|
|
(6,632 |
) |
|
|
(5,431 |
) |
|
81.9 |
% |
|
Noninterest income |
|
68,338 |
|
|
|
64,407 |
|
|
|
3,931 |
|
|
6.1 |
% |
|
Noninterest expense |
|
(240,959 |
) |
|
|
(234,105 |
) |
|
|
(6,854 |
) |
|
2.9 |
% |
|
Provision for income taxes |
|
(44,601 |
) |
|
|
(40,236 |
) |
|
|
(4,365 |
) |
|
10.8 |
% |
|
Net income |
$ |
121,558 |
|
|
$ |
114,868 |
|
|
$ |
6,690 |
|
|
5.8 |
% |
|
Diluted earnings per share |
$ |
3.70 |
|
|
$ |
3.46 |
|
|
$ |
0.24 |
|
|
6.9 |
% |
|
Dividends per share |
$ |
1.38 |
|
|
$ |
1.32 |
|
|
$ |
0.06 |
|
|
4.5 |
% |
|
Average common shares |
|
32,672 |
|
|
|
33,088 |
|
|
|
(416 |
) |
|
(1.3 |
)% |
|
Average diluted common shares |
|
32,855 |
|
|
|
33,230 |
|
|
|
(375 |
) |
|
(1.1 |
)% |
|
Return on average total assets |
|
1.23 |
% |
|
|
1.18 |
% |
|
|
|
|
|||
|
Return on average equity |
|
9.45 |
% |
|
|
9.57 |
% |
|
|
|
|
|||
|
Efficiency ratio |
|
57.48 |
% |
|
|
59.14 |
% |
|
|
|
|
|||
Balance Sheet Data
Total loans outstanding were $7.1 billion as of December 31, 2025, an increase of $342.6 million or 5.1% over December 31, 2024, and an increase of $104.3 million or 6.0% annualized as compared to the trailing quarter ended September 30, 2025. Investments decreased by $13.7 million and $194.2 million for the three and twelve month periods ended December 31, 2025, respectively, and ended the quarter with a balance of $1.84 billion or 18.8% of total assets. Quarterly average earning assets to quarterly total average assets was 91.9% on December 31, 2025, compared to 91.8% at December 31, 2024. The loan-to-deposit ratio was 86.1% on December 31, 2025, as compared to 83.7% at December 31, 2024. The Company did not utilize brokered deposits during 2025 or 2024 and continues to rely on organic deposit customers to fund cash flow timing differences.
Total shareholders’ equity increased by $23.7 million during the quarter ended December 31, 2025, as net income of $33.6 million and a $10.4 million decrease in accumulated other comprehensive losses were partially offset by $11.7 million in cash dividends on common stock and $8.9 million in share repurchase activity. As a result, the Company’s book value increased to $41.07 per share at December 31, 2025, compared to $40.12 at September 30, 2025. 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 $31.52 per share at December 31, 2025, as compared to $30.61 at September 30, 2025. Changes in the fair value of available-for-sale investment securities, net of deferred taxes, continue to create moderate levels of volatility in tangible book value per share.
|
Trailing Quarter Balance Sheet Change |
|
|
|
|
|
|
||||||||
|
Ending balances |
December 31, |
|
September 30, |
|
|
|
Annualized % Change |
|||||||
|
(dollars in thousands) |
|
|
$ Change |
|||||||||||
|
Total assets |
$ |
9,822,063 |
|
$ |
9,878,836 |
|
$ |
(56,773 |
) |
|
(2.3 |
)% |
||
|
Total loans |
|
7,111,087 |
|
|
7,006,824 |
|
|
104,263 |
|
|
6.0 |
|
||
|
Total investments |
|
1,842,417 |
|
|
1,856,133 |
|
|
(13,716 |
) |
|
(3.0 |
) |
||
|
Total deposits |
|
8,263,901 |
|
|
8,334,461 |
|
|
(70,560 |
) |
|
(3.4 |
) |
||
|
Total other borrowings |
|
11,713 |
|
|
17,039 |
|
|
(5,326 |
) |
|
(125.0 |
) |
||
Loans outstanding increased by $104.3 million or 6.0% on an annualized basis during the quarter ended December 31, 2025. During the quarter, loan originations/draws totaled approximately $502.8 million while payoffs/repayments of loans totaled $367.3 million, which compares to originations/draws and payoffs/repayments during the trailing quarter ended of $424.6 million and $377.1 million, respectively. Origination volume remains in-line in with the trajectory of historical levels, as interest rates continue to contract from the highs experienced in early 2025, and the macro-economic outlook remains optimistic for borrowers following the passage of tax and spending legislation that is expected to promote continued economic expansion. The activity within loan payoffs/repayments remained consistent with the trailing quarter and spread amongst numerous borrowers, regions and loan types.
Investment security balances decreased $13.7 million or 3.0% on an annualized basis during the quarter as a result of net prepayments/maturities of $56.7 million, and sales of $20.6 million, partially offset by net increases in the market value of securities of $14.7 million and purchases of $49.3 million. Investment security purchases were comprised of fixed rate agency mortgage-backed securities and collateralized loan obligations. While management intends to primarily utilize cash flows from the investment security portfolio and organic deposit growth to support loan growth, excess liquidity will be utilized for purchases of investment securities to support net interest income growth and net interest margin expansion.
Deposit balances decreased by $70.6 million or 3.4% annualized during the period, which is consistent with the one-way sale of deposits totaling $72.9 million as of December 31, 2025. There were no deposit sales as of any comparable quarter end.
|
Average Trailing Quarter Balance Sheet Change |
|
|
|
|
||||||||||
|
Quarterly average balances for the period ended |
December 31, |
|
September 30, |
|
|
|
Annualized |
|||||||
|
(dollars in thousands) |
|
|
$ Change |
|
||||||||||
|
Total assets |
$ |
9,929,582 |
|
$ |
9,900,675 |
|
$ |
28,907 |
|
|
1.2 |
% |
||
|
Total loans |
|
7,023,749 |
|
|
6,971,860 |
|
|
51,889 |
|
|
3.0 |
|
||
|
Total investments |
|
1,840,956 |
|
|
1,869,394 |
|
|
(28,438 |
) |
|
(6.1 |
) |
||
|
Total deposits |
|
8,376,361 |
|
|
8,361,600 |
|
|
14,761 |
|
|
0.7 |
|
||
|
Total other borrowings |
|
13,705 |
|
|
17,495 |
|
|
(3,790 |
) |
|
(86.7 |
) |
||
|
Year Over Year Balance Sheet Change |
|
|
|
|
|
|
|
|||||||
|
Ending balances |
As of December 31, |
|
|
|
% Change |
|||||||||
|
(dollars in thousands) |
|
2025 |
|
|
2024 |
|
$ Change |
|
||||||
|
Total assets |
$ |
9,822,063 |
|
$ |
9,673,728 |
|
$ |
148,335 |
|
|
1.5 |
% |
||
|
Total loans |
|
7,111,087 |
|
|
6,768,523 |
|
|
342,564 |
|
|
5.1 |
|
||
|
Total investments |
|
1,842,417 |
|
|
2,036,610 |
|
|
(194,193 |
) |
|
(9.5 |
) |
||
|
Total deposits |
|
8,263,901 |
|
|
8,087,576 |
|
|
176,325 |
|
|
2.2 |
|
||
|
Total other borrowings |
|
11,713 |
|
|
89,610 |
|
|
(77,897 |
) |
|
(86.9 |
) |
||
Net Interest Income and Net Interest Margin
The Company’s yield on loans for the fourth quarter was 5.77%, an increase of 2 basis point from 5.75% as of the trailing quarter end and a decrease of 1 basis point as compared to 5.78% for the quarter ended December 31, 2024. The tax equivalent yield on the Company’s investment security portfolio was 3.35% for the quarter ended December 31, 2025, a decrease of 14 basis points from the trailing quarter end of 3.49% and a decrease of 3 basis points from the 3.38% earned during the three months ended December 31, 2024. As compared to the trailing quarter, costs on interest-bearing deposits decreased by 12 basis points, while costs on interest-bearing liabilities declined by 15 basis points. The cost of total interest-bearing deposits decreased by 28 basis points, while the costs of total interest-bearing liabilities decreased by 37 basis points, respectively, between the three-month periods ended December 31, 2025 and 2024, respectively.
The FOMC cut short-term interest rates during the current quarter by 50 basis points, following a 25 basis point reduction during the third quarter. The fully tax-equivalent net interest income and net interest margin was $92.5 million and 4.02%, respectively, for the quarter ended December 31, 2025, and was $89.8 million and 3.92%, respectively, for the trailing quarter ended September 30, 2025. More specifically, the net interest rate spread improved by 13 basis points to 3.33% for the quarter ended December 31, 2025, as compared to the trailing quarter, while the net interest margin improved by 10 basis points to 4.02% over the same period.
The Company continues to manage its cost of deposits through the use of various pricing and product mix strategies. As of December 31, 2025, September 30, 2025, and December 31, 2024, deposits priced utilizing these customized strategies totaled $898.9 million, $1.0 billion, and $1.1 billion and carried weighted average rates of 3.05%, 3.33% and 3.59%, respectively.
|
|
Three months ended |
|
|
|
|
|||||||||
|
|
December 31, |
|
September 30, |
|
|
|
|
|||||||
|
(dollars in thousands) |
|
|
Change |
|
% Change |
|||||||||
|
Interest income |
$ |
120,147 |
|
|
$ |
119,987 |
|
|
$ |
160 |
|
|
0.1 |
% |
|
Interest expense |
|
(27,920 |
) |
|
|
(30,432 |
) |
|
|
2,512 |
|
|
(8.3 |
)% |
|
Fully tax-equivalent adjustment (FTE) (1) |
|
260 |
|
|
|
262 |
|
|
|
(2 |
) |
|
(0.8 |
)% |
|
Net interest income (FTE) |
$ |
92,487 |
|
|
$ |
89,817 |
|
|
$ |
2,670 |
|
|
3.0 |
% |
|
Net interest margin (FTE) |
|
4.02 |
% |
|
|
3.92 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Acquired loans discount accretion, net: |
|
|
|
|
|
|
|
|||||||
|
Amount (included in interest income) |
$ |
915 |
|
|
$ |
996 |
|
|
$ |
(81 |
) |
|
(8.1 |
)% |
|
Net interest margin less effect of acquired loan discount accretion(1) |
|
3.98 |
% |
|
|
3.88 |
% |
|
|
0.10 |
% |
|
|
|
|
|
Three months ended |
|
|
|
|
|||||||||
|
(dollars in thousands) |
|
2025 |
|
|
|
2024 |
|
|
Change |
|
% Change |
|||
|
Interest income |
$ |
120,147 |
|
|
$ |
116,842 |
|
|
$ |
3,305 |
|
|
2.8 |
% |
|
Interest expense |
|
(27,920 |
) |
|
|
(32,752 |
) |
|
|
4,832 |
|
|
(14.8 |
)% |
|
Fully tax-equivalent adjustment (FTE) (1) |
|
260 |
|
|
|
266 |
|
|
|
(6 |
) |
|
(2.3 |
)% |
|
Net interest income (FTE) |
$ |
92,487 |
|
|
$ |
84,356 |
|
|
$ |
8,131 |
|
|
9.6 |
% |
|
Net interest margin (FTE) |
|
4.02 |
% |
|
|
3.76 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Acquired loans discount accretion, net: |
|
|
|
|
|
|
|
|||||||
|
Amount (included in interest income) |
$ |
915 |
|
|
$ |
1,129 |
|
|
$ |
(214 |
) |
|
(19.0 |
)% |
|
Net interest margin less effect of acquired loan discount accretion(1) |
|
3.98 |
% |
|
|
3.71 |
% |
|
|
0.27 |
% |
|
|
|
|
|
Twelve months ended |
|
|
|
|
|||||||||
|
(dollars in thousands) |
|
2025 |
|
|
|
2024 |
|
|
Change |
|
% Change |
|||
|
Interest income |
$ |
470,572 |
|
|
$ |
466,638 |
|
|
$ |
3,934 |
|
|
0.8 |
% |
|
Interest expense |
|
(119,729 |
) |
|
|
(135,204 |
) |
|
|
15,475 |
|
|
(11.4 |
)% |
|
Fully tax-equivalent adjustment (FTE) (1) |
|
1,050 |
|
|
|
1,085 |
|
|
|
(35 |
) |
|
(3.2 |
)% |
|
Net interest income (FTE) |
$ |
351,893 |
|
|
$ |
332,519 |
|
|
$ |
19,374 |
|
|
5.8 |
% |
|
Net interest margin (FTE) |
|
3.89 |
% |
|
|
3.71 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Acquired loans discount accretion, net: |
|
|
|
|
|
|
|
|||||||
|
Amount (included in interest income) |
$ |
5,153 |
|
|
$ |
4,329 |
|
|
$ |
824 |
|
|
19.0 |
% |
|
Net interest margin less effect of acquired loan discount accretion(1) |
|
3.83 |
% |
|
|
3.66 |
% |
|
|
0.17 |
% |
|
|
|
|
(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 and customary practice within the banking industry. See additional information related to non-GAAP measures at the back of this document. |
Analysis Of Change in Net Interest Margin on Earning Assets
|
Three months ended |
|
Three months ended |
|
Three months ended |
||||||||||||||||||||||
|
|
December 31, 2025 |
|
September 30, 2025 |
|
December 31, 2024 |
|||||||||||||||||||||
|
(dollars in thousands) |
Average Balance |
|
Income/ Expense |
|
Yield/ Rate |
|
Average Balance |
|
Income/ Expense |
|
Yield/ Rate |
|
Average Balance |
|
Income/ Expense |
|
Yield/ Rate |
|||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Loans |
$ |
7,023,749 |
|
$ |
102,231 |
|
5.77 |
% |
|
$ |
6,971,860 |
|
$ |
101,004 |
|
5.75 |
% |
|
$ |
6,720,732 |
|
$ |
97,692 |
|
5.78 |
% |
|
Investments-taxable |
|
1,710,394 |
|
|
14,404 |
|
3.34 |
% |
|
|
1,737,273 |
|
|
15,321 |
|
3.50 |
% |
|
|
1,932,839 |
|
|
16,413 |
|
3.38 |
% |
|
Investments-nontaxable (1) |
|
130,562 |
|
|
1,126 |
|
3.42 |
% |
|
|
132,121 |
|
|
1,134 |
|
3.41 |
% |
|
|
133,598 |
|
|
1,152 |
|
3.43 |
% |
|
Total investments |
|
1,840,956 |
|
|
15,530 |
|
3.35 |
% |
|
|
1,869,394 |
|
|
16,455 |
|
3.49 |
% |
|
|
2,066,437 |
|
|
17,565 |
|
3.38 |
% |
|
Cash at Fed Reserve and other banks |
|
262,724 |
|
|
2,646 |
|
4.00 |
% |
|
|
249,646 |
|
|
2,790 |
|
4.43 |
% |
|
|
144,908 |
|
|
1,851 |
|
5.08 |
% |
|
Total earning assets |
|
9,127,429 |
|
|
120,407 |
|
5.23 |
% |
|
|
9,090,900 |
|
|
120,249 |
|
5.25 |
% |
|
|
8,932,077 |
|
|
117,108 |
|
5.22 |
% |
|
Other assets, net |
|
802,153 |
|
|
|
|
|
|
809,775 |
|
|
|
|
|
|
793,566 |
|
|
|
|
||||||
|
Total assets |
$ |
9,929,582 |
|
|
|
|
|
$ |
9,900,675 |
|
|
|
|
|
$ |
9,725,643 |
|
|
|
|
||||||
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Interest-bearing demand deposits |
$ |
1,831,148 |
|
$ |
6,266 |
|
1.36 |
% |
|
$ |
1,850,733 |
|
$ |
6,649 |
|
1.43 |
% |
|
$ |
1,723,059 |
|
$ |
5,704 |
|
1.32 |
% |
|
Savings deposits |
|
2,848,212 |
|
|
11,651 |
|
1.62 |
% |
|
|
2,855,750 |
|
|
12,965 |
|
1.80 |
% |
|
|
2,699,084 |
|
|
12,666 |
|
1.87 |
% |
|
Time deposits |
|
1,097,570 |
|
|
9,284 |
|
3.36 |
% |
|
|
1,107,646 |
|
|
9,587 |
|
3.43 |
% |
|
|
1,111,024 |
|
|
11,518 |
|
4.12 |
% |
|
Total interest-bearing deposits |
|
5,776,930 |
|
|
27,201 |
|
1.87 |
% |
|
|
5,814,129 |
|
|
29,201 |
|
1.99 |
% |
|
|
5,533,167 |
|
|
29,888 |
|
2.15 |
% |
|
Other borrowings |
|
13,705 |
|
|
1 |
|
0.03 |
% |
|
|
17,495 |
|
|
3 |
|
0.07 |
% |
|
|
95,202 |
|
|
1,066 |
|
4.45 |
% |
|
Junior subordinated debt |
|
41,238 |
|
|
718 |
|
6.91 |
% |
|
|
71,477 |
|
|
1,228 |
|
6.82 |
% |
|
|
101,173 |
|
|
1,798 |
|
7.07 |
% |
|
Total interest-bearing liabilities |
|
5,831,873 |
|
|
27,920 |
|
1.90 |
% |
|
|
5,903,101 |
|
|
30,432 |
|
2.05 |
% |
|
|
5,729,542 |
|
|
32,752 |
|
2.27 |
% |
|
Noninterest-bearing deposits |
|
2,599,431 |
|
|
|
|
|
|
2,547,471 |
|
|
|
|
|
|
2,585,496 |
|
|
|
|
||||||
|
Other liabilities |
|
165,974 |
|
|
|
|
|
|
160,568 |
|
|
|
|
|
|
169,083 |
|
|
|
|
||||||
|
Shareholders’ equity |
|
1,332,304 |
|
|
|
|
|
|
1,289,535 |
|
|
|
|
|
|
1,241,522 |
|
|
|
|
||||||
|
Total liabilities and shareholders’ equity |
$ |
9,929,582 |
|
|
|
|
|
$ |
9,900,675 |
|
|
|
|
|
$ |
9,725,643 |
|
|
|
|
||||||
|
Net interest rate spread (1) (2) |
|
|
|
|
3.33 |
% |
|
|
|
|
|
3.20 |
% |
|
|
|
|
|
2.95 |
% |
||||||
|
Net interest income and margin (1) (3) |
|
|
$ |
92,487 |
|
4.02 |
% |
|
|
|
$ |
89,817 |
|
3.92 |
% |
|
|
|
$ |
84,356 |
|
3.76 |
% |
|||
|
(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 December 31, 2025, increased $2.7 million or 3.0% to $92.5 million compared to $89.8 million during the three months ended September 30, 2025. Net interest margin totaled 4.02% for the three months ended December 31, 2025, an increase of 10 basis points from the trailing quarter. The increase in net interest income is primarily attributed to a $2 million reduction in interest expense on deposits, led by $1.3 million in benefit from savings deposit accounts. The net interest margin was further enhanced by reductions in interest expense on junior subordinated debt of $0.5 million as compared to the trailing quarter, following the early extinguishment of subordinated debt with a recorded book value of $59.9 million during the third quarter. In addition, the average balance of noninterest-bearing deposits increased by $52.0 million from the three-month average for the period ended September 30, 2025.
As compared to the same quarter in the prior year, average loan yields decreased 1 basis points from 5.78% during the three months ended December 31, 2024, to 5.77% during the three months ended December 31, 2025. The accretion of discounts from acquired loans added 5 basis points to loan yields during both quarters ended December 31, 2025 and December 31, 2024, respectively. The cost of interest-bearing deposits decreased by 28 basis points between the quarter ended December 31, 2025, and the same quarter of the prior year. In addition, the average balance of noninterest-bearing deposits increased by $13.9 million from the three-month average for the period ended December 31, 2024.
For the quarter ended December 31, 2025, the ratio of average total noninterest-bearing deposits to total average deposits was 31.0%, as compared to 30.5% and 31.8% for the quarters ended September 30, 2025 and December 31, 2024, respectively.
|
|
Twelve months ended December 31, 2025 |
|
Twelve months ended December 31, 2024 |
||||||||||||||
|
(dollars in thousands) |
Average Balance |
|
Income/ Expense |
|
Yield/ Rate |
|
Average Balance |
|
Income/ Expense |
|
Yield/ Rate |
||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Loans |
$ |
6,913,337 |
|
$ |
397,308 |
|
5.75 |
% |
|
$ |
6,747,072 |
|
$ |
390,491 |
|
5.79 |
% |
|
Investments-taxable |
|
1,787,112 |
|
|
60,398 |
|
3.38 |
% |
|
|
2,008,823 |
|
|
68,434 |
|
3.41 |
% |
|
Investments-nontaxable (1) |
|
132,154 |
|
|
4,551 |
|
3.44 |
% |
|
|
136,530 |
|
|
4,700 |
|
3.44 |
% |
|
Total investments |
|
1,919,266 |
|
|
64,949 |
|
3.38 |
% |
|
|
2,145,353 |
|
|
73,134 |
|
3.41 |
% |
|
Cash at Fed Reserve and other banks |
|
216,083 |
|
|
9,365 |
|
4.33 |
% |
|
|
80,439 |
|
|
4,098 |
|
5.09 |
% |
|
Total earning assets |
|
9,048,686 |
|
|
471,622 |
|
5.21 |
% |
|
|
8,972,864 |
|
|
467,723 |
|
5.21 |
% |
|
Other assets, net |
|
806,100 |
|
|
|
|
|
|
784,462 |
|
|
|
|
||||
|
Total assets |
$ |
9,854,786 |
|
|
|
|
|
$ |
9,757,326 |
|
|
|
|
||||
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Interest-bearing demand deposits |
$ |
1,829,324 |
|
$ |
25,212 |
|
1.38 |
% |
|
$ |
1,734,900 |
|
$ |
22,998 |
|
1.33 |
% |
|
Savings deposits |
|
2,808,876 |
|
|
49,060 |
|
1.75 |
% |
|
|
2,677,726 |
|
|
49,028 |
|
1.83 |
% |
|
Time deposits |
|
1,106,959 |
|
|
39,033 |
|
3.53 |
% |
|
|
999,143 |
|
|
41,100 |
|
4.11 |
% |
|
Total interest-bearing deposits |
|
5,745,159 |
|
|
113,305 |
|
1.97 |
% |
|
|
5,411,769 |
|
|
113,126 |
|
2.09 |
% |
|
Other borrowings |
|
35,585 |
|
|
1,065 |
|
2.99 |
% |
|
|
294,318 |
|
|
14,706 |
|
5.00 |
% |
|
Junior subordinated debt |
|
78,604 |
|
|
5,359 |
|
6.82 |
% |
|
|
101,139 |
|
|
7,372 |
|
7.29 |
% |
|
Total interest-bearing liabilities |
|
5,859,348 |
|
|
119,729 |
|
2.04 |
% |
|
|
5,807,226 |
|
|
135,204 |
|
2.33 |
% |
|
Noninterest-bearing deposits |
|
2,544,718 |
|
|
|
|
|
|
2,584,904 |
|
|
|
|
||||
|
Other liabilities |
|
163,761 |
|
|
|
|
|
|
165,056 |
|
|
|
|
||||
|
Shareholders’ equity |
|
1,286,959 |
|
|
|
|
|
|
1,200,140 |
|
|
|
|
||||
|
Total liabilities and shareholders’ equity |
$ |
9,854,786 |
|
|
|
|
|
$ |
9,757,326 |
|
|
|
|
||||
|
Net interest rate spread (1) (2) |
|
|
|
|
3.17 |
% |
|
|
|
|
|
2.88 |
% |
||||
|
Net interest income and margin (1) (3) |
|
|
$ |
351,893 |
|
3.89 |
% |
|
|
|
$ |
332,519 |
|
3.71 |
% |
||
|
(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. |
Interest Rates and Earning Asset Composition
As of December 31, 2025, the Company’s loan portfolio consisted of approximately $7.1 billion in outstanding principal with a weighted average coupon rate of 5.
Contacts
Investor Contact
Peter G. Wiese, EVP & CFO, (530) 898-0300
