3Q25 Financial Highlights
- Net income was $34.0 million or $1.04 per diluted share as compared to $27.5 million or $0.84 per diluted share in the trailing quarter, and an increase of $5.0 million or 17.1% from the third quarter of 2024
- Net interest income (FTE) was $89.8 million, an increase of $3.0 million or 3.51% over the trailing quarter; net interest margin (FTE) was 3.92% in the recent quarter, an increase of 4 basis points over 3.88% in the trailing quarter
- Loan balances increased $47.8 million or 2.7% (annualized) from the trailing quarter and increased $322.9 million or 4.8% from the same quarter of the prior year
- Deposit balances decreased $41.3 million or 2.0% (annualized) from the trailing quarter and increased $297.4 million or 3.7% from the same quarter of the prior year
- Average yield on earning assets was 5.25%, an increase of 4 basis points over the 5.21% in the trailing quarter; average yield on loans was 5.75%, a decrease of 1 basis point over the 5.76% in the trailing quarter
- Non-interest bearing deposits averaged 30.5% of total deposits during the quarter
- The average cost of total deposits was 1.39%, an increase of 2 basis points as compared to 1.37% in the trailing quarter, and a decrease of 13 basis points from 1.52% in the same quarter of the prior year
CHICO, Calif.–(BUSINESS WIRE)–$TCBK #CommunityBank–TriCo Bancshares (NASDAQ: TCBK):
Executive Commentary:
“We continue to see positive trends in a number of measures that will benefit the Company in future periods, which, as demonstrated in the current quarter, led to both positive operating leverage and growth in return on equity. While we anticipate crossing the $10 billion threshold in 2026, our ability to execute on our long-term strategies remain our primary focus,” said Rick Smith, Chairman and CEO.
Peter Wiese, EVP and CFO added, “Loan production and origination activities continue to increase while balance sheet repricing remains ahead of expectations. The migration towards a steepening yield curve will likely contribute positively to net interest income expansion while management remains diligent about controlling expenses despite the persistence of an inflationary environment.”
Selected Financial Highlights
- For the quarter ended September 30, 2025, the Company’s return on average assets was 1.36%, while the return on average equity was 10.47%; for the trailing quarter ended June 30, 2025, the Company’s return on average assets was 1.13%, while the return on average equity was 8.68%
- Diluted earnings per share were $1.04 for the third quarter of 2025, compared to $0.84 for the trailing quarter and $0.88 during the third quarter of 2024
- The loan to deposit ratio was 84.07% as of September 30, 2025, as compared to 83.08% for the trailing quarter end. Management’s ability to maintain this ratio proximate to 85.0% will drive growth in revenue and earnings, as demonstrated in the current period
- The efficiency ratio was 56.18% for the quarter ended September 30, 2025, as compared to 59.00% for the trailing quarter
- The provision for credit losses was $0.7 million during the quarter ended September 30, 2025, as compared to $4.7 million during the trailing quarter end
- The allowance for credit losses (ACL) to total loans was 1.78% as of September 30, 2025, compared to 1.79% as of the trailing quarter end, and 1.85% as of September 30, 2024. Non-performing assets to total assets were 0.72% on September 30, 2025, as compared to 0.68% as of June 30, 2025, and 0.45% at September 30, 2024. At September 30, 2025, the ACL represented 190% 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-Q for the period ended September 30, 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 |
|
|
|
|
||||||||||
|
|
September 30, |
|
June 30, |
|
|
|
|
|||||||
|
(dollars and shares in thousands, except per share data) |
|
|
$ Change |
|
% Change |
|||||||||
|
Net interest income |
$ |
89,555 |
|
|
$ |
86,519 |
|
|
$ |
3,036 |
|
|
3.5 |
% |
|
Provision for credit losses |
|
(670 |
) |
|
|
(4,665 |
) |
|
|
3,995 |
|
|
(85.6 |
)% |
|
Noninterest income |
|
18,007 |
|
|
|
17,090 |
|
|
|
917 |
|
|
5.4 |
% |
|
Noninterest expense |
|
(60,424 |
) |
|
|
(61,131 |
) |
|
|
707 |
|
|
(1.2 |
)% |
|
Provision for income taxes |
|
(12,449 |
) |
|
|
(10,271 |
) |
|
|
(2,178 |
) |
|
21.2 |
% |
|
Net income |
$ |
34,019 |
|
|
$ |
27,542 |
|
|
$ |
6,477 |
|
|
23.5 |
% |
|
Diluted earnings per share |
$ |
1.04 |
|
|
$ |
0.84 |
|
|
$ |
0.20 |
|
|
23.8 |
% |
|
Dividends per share |
$ |
0.36 |
|
|
$ |
0.33 |
|
|
$ |
0.03 |
|
|
9.1 |
% |
|
Average common shares |
|
32,542 |
|
|
|
32,757 |
|
|
|
(215 |
) |
|
(0.7 |
)% |
|
Average diluted common shares |
|
32,723 |
|
|
|
32,936 |
|
|
|
(213 |
) |
|
(0.6 |
)% |
|
Return on average total assets |
|
1.36 |
% |
|
|
1.13 |
% |
|
|
|
|
|||
|
Return on average equity |
|
10.47 |
% |
|
|
8.68 |
% |
|
|
|
|
|||
|
Efficiency ratio |
|
56.18 |
% |
|
|
59.00 |
% |
|
|
|
|
|||
|
|
Three months ended |
|
|
|
|
|||||||||
|
(dollars and shares in thousands, except per share data) |
|
2025 |
|
|
|
2024 |
|
|
$ Change |
|
% Change |
|||
|
Net interest income |
$ |
89,555 |
|
|
$ |
82,611 |
|
|
$ |
6,944 |
|
|
8.4 |
% |
|
Provision for credit losses |
|
(670 |
) |
|
|
(220 |
) |
|
|
(450 |
) |
|
204.5 |
% |
|
Noninterest income |
|
18,007 |
|
|
|
16,495 |
|
|
|
1,512 |
|
|
9.2 |
% |
|
Noninterest expense |
|
(60,424 |
) |
|
|
(59,487 |
) |
|
|
(937 |
) |
|
1.6 |
% |
|
Provision for income taxes |
|
(12,449 |
) |
|
|
(10,348 |
) |
|
|
(2,101 |
) |
|
20.3 |
% |
|
Net income |
$ |
34,019 |
|
|
$ |
29,051 |
|
|
$ |
4,968 |
|
|
17.1 |
% |
|
Diluted earnings per share |
$ |
1.04 |
|
|
$ |
0.88 |
|
|
$ |
0.16 |
|
|
18.2 |
% |
|
Dividends per share |
$ |
0.36 |
|
|
$ |
0.33 |
|
|
$ |
0.03 |
|
|
9.1 |
% |
|
Average common shares |
|
32,542 |
|
|
|
32,993 |
|
|
|
(451 |
) |
|
(1.4 |
)% |
|
Average diluted common shares |
|
32,723 |
|
|
|
33,137 |
|
|
|
(414 |
) |
|
(1.2 |
)% |
|
Return on average total assets |
|
1.36 |
% |
|
|
1.20 |
% |
|
|
|
|
|||
|
Return on average equity |
|
10.47 |
% |
|
|
9.52 |
% |
|
|
|
|
|||
|
Efficiency ratio |
|
56.18 |
% |
|
|
60.02 |
% |
|
|
|
|
|||
|
|
Nine months ended |
|
|
|||||||||||
|
(dollars and shares in thousands) |
|
2025 |
|
|
|
2024 |
|
|
$ Change |
|
% Change |
|||
|
Net interest income |
$ |
258,616 |
|
|
$ |
247,344 |
|
|
$ |
11,272 |
|
|
4.6 |
% |
|
Provision for credit losses |
|
(9,063 |
) |
|
|
(4,930 |
) |
|
|
(4,133 |
) |
|
83.8 |
% |
|
Noninterest income |
|
51,170 |
|
|
|
48,132 |
|
|
|
3,038 |
|
|
6.3 |
% |
|
Noninterest expense |
|
(181,140 |
) |
|
|
(174,330 |
) |
|
|
(6,810 |
) |
|
3.9 |
% |
|
Provision for income taxes |
|
(31,659 |
) |
|
|
(30,382 |
) |
|
|
(1,277 |
) |
|
4.2 |
% |
|
Net income |
$ |
87,924 |
|
|
$ |
85,834 |
|
|
$ |
2,090 |
|
|
2.4 |
% |
|
Diluted earnings per share |
$ |
2.67 |
|
|
$ |
2.58 |
|
|
$ |
0.09 |
|
|
3.5 |
% |
|
Dividends per share |
$ |
1.02 |
|
|
$ |
0.99 |
|
|
$ |
0.03 |
|
|
3.0 |
% |
|
Average common shares |
|
32,749 |
|
|
|
33,119 |
|
|
|
(370 |
) |
|
(1.1 |
)% |
|
Average diluted common shares |
|
32,929 |
|
|
|
33,251 |
|
|
|
(322 |
) |
|
(1.0 |
)% |
|
Return on average total assets |
|
1.20 |
% |
|
|
1.17 |
% |
|
|
|
|
|||
|
Return on average equity |
|
9.24 |
% |
|
|
9.67 |
% |
|
|
|
|
|||
|
Efficiency ratio |
|
58.47 |
% |
|
|
59.00 |
% |
|
|
|
|
|||
Balance Sheet Data
Total loans outstanding were $7.0 billion as of September 30, 2025, an increase of $322.9 million or 4.8% over September 30, 2024, and an increase of $47.8 million or 2.7% annualized as compared to the trailing quarter ended June 30, 2025. Investments decreased by $80.8 million and $260.3 million for the three and twelve month periods ended September 30, 2025, respectively, and ended the quarter with a balance of $1.86 billion or 18.8% of total assets. Quarterly average earning assets to quarterly total average assets was 91.8% on September 30, 2025, compared to 92.0% at September 30, 2024. The loan-to-deposit ratio was 84.1% on September 30, 2025, as compared to 83.2% at September 30, 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 $37.5 million during the quarter ended September 30, 2025, as net income of $34.0 million and a $16.4 million decrease in accumulated other comprehensive losses were partially offset by $11.7 million in cash dividends on common stock and $2.3 million in share repurchase activity. As a result, the Company’s book value increased to $40.12 per share at September 30, 2025, compared to $38.92 at June 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 $30.61 per share at September 30, 2025, as compared to $29.40 at June 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 |
September 30, |
|
June 30, |
|
|
|
Annualized % Change |
|||||||
|
(dollars in thousands) |
|
|
$ Change |
|||||||||||
|
Total assets |
$ |
9,878,836 |
|
$ |
9,923,983 |
|
$ |
(45,147 |
) |
|
(1.8 |
)% |
||
|
Total loans |
|
7,006,824 |
|
|
|
6,958,993 |
|
|
|
47,831 |
|
|
2.7 |
|
|
Total investments |
|
1,856,133 |
|
|
|
1,936,954 |
|
|
|
(80,821 |
) |
|
(16.7 |
) |
|
Total deposits |
|
8,334,461 |
|
|
|
8,375,809 |
|
|
|
(41,348 |
) |
|
(2.0 |
) |
|
Total other borrowings |
|
17,039 |
|
|
|
17,788 |
|
|
|
(749 |
) |
|
(16.8 |
) |
Loans outstanding increased by $47.8 million or 2.7% on an annualized basis during the quarter ended September 30, 2025. During the quarter, loan originations/draws totaled approximately $424.6 million while payoffs/repayments of loans totaled $377.1 million, which compares to originations/draws and payoffs/repayments during the trailing quarter ended of $457.7 million and $329.3 million, respectively. Origination volume was down relative to the robust prior quarter but remains in-line with forecasted levels. As interest rates continue to contract from the highs experienced in early 2025, the macro-economic outlook remains optimistic for borrowers following the passage of tax and spending legislation that is expected to promote continued economic expansion, in addition to progress made finalizing tariff policies with the United States’ largest trade partners. The activity within loan payoffs/repayments, while elevated in the most recent quarter, remains spread amongst numerous borrowers, regions and loan types.
Investment security balances decreased $80.8 million or 16.7% on an annualized basis during the quarter as a result of net prepayments/maturities of $143.6 million, and sales of $28.5 million, partially offset by net increases in the market value of securities of $12.8 million and purchases of $73.4 million. Investment security purchases were comprised of fixed rate agency mortgage-backed securities, non-agency collateralized mortgage 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 $41.3 million or 2.0% annualized during the period due to declines in primarily savings deposit account balances.
|
Average Trailing Quarter Balance Sheet Change |
||||||||||||||
|
Quarterly average balances for the period ended |
September 30, |
|
June 30, |
|
|
|
Annualized % Change |
|||||||
|
(dollars in thousands) |
|
|
$ Change |
|
||||||||||
|
Total assets |
$ |
9,900,675 |
|
$ |
9,778,834 |
|
$ |
121,841 |
|
|
5.0 |
% |
||
|
Total loans |
|
6,971,860 |
|
|
|
6,878,186 |
|
|
|
93,674 |
|
|
5.4 |
|
|
Total investments |
|
1,869,394 |
|
|
|
1,951,390 |
|
|
|
(81,996 |
) |
|
(16.8 |
) |
|
Total deposits |
|
8,361,600 |
|
|
|
8,222,982 |
|
|
|
138,618 |
|
|
6.7 |
|
|
Total other borrowings |
|
17,495 |
|
|
|
22,707 |
|
|
|
(5,212 |
) |
|
(91.8 |
) |
|
Year Over Year Balance Sheet Change |
||||||||||||||
|
Ending balances |
As of September 30, |
|
|
|
% Change |
|||||||||
|
(dollars in thousands) |
|
2025 |
|
|
|
2024 |
|
|
$ Change |
|
||||
|
Total assets |
$ |
9,878,836 |
|
$ |
9,823,890 |
|
$ |
54,946 |
|
|
0.6 |
% |
||
|
Total loans |
|
7,006,824 |
|
|
|
6,683,891 |
|
|
|
322,933 |
|
|
4.8 |
|
|
Total investments |
|
1,856,133 |
|
|
|
2,116,469 |
|
|
|
(260,336 |
) |
|
(12.3 |
) |
|
Total deposits |
|
8,334,461 |
|
|
|
8,037,091 |
|
|
|
297,370 |
|
|
3.7 |
|
|
Total other borrowings |
|
17,039 |
|
|
|
266,767 |
|
|
|
(249,728 |
) |
|
(93.6 |
) |
Net Interest Income and Net Interest Margin
The Company’s yield on loans for the third quarter was 5.75%, a decrease of 1 basis point from 5.76% as of the trailing quarter end and a decrease of 8 basis points as compared to 5.83% for the period ended September 30, 2024. The tax equivalent yield on the Company’s investment security portfolio was 3.49% for the quarter ended September 30, 2025, an increase of 19 basis points from the trailing quarter end of 3.30% and an increase of 3 basis points from the 3.46% earned during the three months ended September 30, 2024. As compared to the trailing quarter, costs on interest-bearing deposits increased by 2 basis points and interest-bearing liabilities were unchanged. The cost of total interest-bearing deposits decreased by 24 basis points, while the costs of total interest-bearing liabilities decreased by 35 basis points, respectively, between the three-month periods ended September 30, 2025 and 2024, respectively.
The FOMC cut short-term interest rates during the current quarter by 25 basis points, the first change in 2025 following 100 basis points in cuts during the fourth quarter in 2024. The fully tax-equivalent net interest income and net interest margin was $89.8 million and 3.92%, respectively, for the quarter ended September 30, 2025, and was $86.8 million and 3.88%, respectively, for the quarter ended June 30, 2025. More specifically, the net interest rate spread improved by 4 basis points to 3.20% for the quarter ended September 30, 2025, as compared to the trailing quarter, while the net interest margin similarly increased by 4 basis points to 3.92% 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 September 30, 2025, June 30, 2025, and September 30, 2024, deposits priced utilizing these customized strategies totaled $1.0 billion, $1.0 billion, and $1.4 billion and carried weighted average rates of 3.33%, 3.38% and 3.80%, respectively.
|
|
Three months ended |
|
|
|
|
|||||||||
|
|
September 30, |
|
June 30, |
|
|
|
|
|||||||
|
(dollars in thousands) |
|
|
Change |
|
% Change |
|||||||||
|
Interest income |
$ |
119,987 |
|
|
$ |
116,361 |
|
|
$ |
3,626 |
|
|
3.1 |
% |
|
Interest expense |
|
(30,432 |
) |
|
|
(29,842 |
) |
|
|
(590 |
) |
|
2.0 |
% |
|
Fully tax-equivalent adjustment (FTE) (1) |
|
262 |
|
|
|
264 |
|
|
|
(2 |
) |
|
(0.8 |
)% |
|
Net interest income (FTE) |
$ |
89,817 |
|
|
$ |
86,783 |
|
|
$ |
3,034 |
|
|
3.5 |
% |
|
Net interest margin (FTE) |
|
3.92 |
% |
|
|
3.88 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Acquired loans discount accretion, net: |
|
|
|
|
|
|
|
|||||||
|
Amount (included in interest income) |
$ |
996 |
|
|
$ |
1,247 |
|
|
$ |
(251 |
) |
|
(20.1 |
)% |
|
Net interest margin less effect of acquired loan discount accretion(1) |
|
3.88 |
% |
|
|
3.82 |
% |
|
|
0.06 |
% |
|
|
|
|
|
Three months ended |
|
|
|
|
|||||||||
|
(dollars in thousands) |
|
2025 |
|
|
|
2024 |
|
|
Change |
|
% Change |
|||
|
Interest income |
$ |
119,987 |
|
|
$ |
117,347 |
|
|
$ |
2,640 |
|
|
2.2 |
% |
|
Interest expense |
|
(30,432 |
) |
|
|
(34,736 |
) |
|
|
4,304 |
|
|
(12.4 |
)% |
|
Fully tax-equivalent adjustment (FTE) (1) |
|
262 |
|
|
|
269 |
|
|
|
(7 |
) |
|
(2.6 |
)% |
|
Net interest income (FTE) |
$ |
89,817 |
|
|
$ |
82,880 |
|
|
$ |
6,937 |
|
|
8.4 |
% |
|
Net interest margin (FTE) |
|
3.92 |
% |
|
|
3.71 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Acquired loans discount accretion, net: |
|
|
|
|
|
|
|
|||||||
|
Amount (included in interest income) |
$ |
996 |
|
|
$ |
1,018 |
|
|
$ |
(22 |
) |
|
(2.2 |
)% |
|
Net interest margin less effect of acquired loan discount accretion(1) |
|
3.88 |
% |
|
|
3.66 |
% |
|
|
0.22 |
% |
|
|
|
|
|
Nine months ended |
|
|
|
|
|||||||||
|
(dollars in thousands) |
|
2025 |
|
|
|
2024 |
|
|
Change |
|
% Change |
|||
|
Interest income |
$ |
350,425 |
|
|
$ |
349,796 |
|
|
$ |
629 |
|
|
0.2 |
% |
|
Interest expense |
|
(91,809 |
) |
|
|
(102,452 |
) |
|
|
10,643 |
|
|
(10.4 |
)% |
|
Fully tax-equivalent adjustment (FTE) (1) |
|
791 |
|
|
|
819 |
|
|
|
(28 |
) |
|
(3.4 |
)% |
|
Net interest income (FTE) |
$ |
259,407 |
|
|
$ |
248,163 |
|
|
$ |
11,244 |
|
|
4.5 |
% |
|
Net interest margin (FTE) |
|
3.84 |
% |
|
|
3.69 |
% |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Acquired loans discount accretion, net: |
|
|
|
|
|
|
|
|||||||
|
Amount (included in interest income) |
$ |
4,238 |
|
|
$ |
3,200 |
|
|
$ |
1,038 |
|
|
32.4 |
% |
|
Net interest margin less effect of acquired loan discount accretion(1) |
|
3.78 |
% |
|
|
3.64 |
% |
|
|
0.14 |
% |
|
|
|
|
(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 |
|||||||||||||||||||||||||||
|
|
September 30, 2025 |
|
June 30, 2025 |
|
September 30, 2024 |
|||||||||||||||||||||||||||
|
(dollars in thousands) |
Average Balance |
|
Income/ Expense |
|
Yield/ Rate |
|
Average Balance |
|
Income/ Expense |
|
Yield/ Rate |
|
Average Balance |
|
Income/ Expense |
|
Yield/ Rate |
|||||||||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Loans |
$ |
6,971,860 |
|
$ |
101,004 |
|
5.75 |
% |
|
$ |
6,878,186 |
|
$ |
98,695 |
|
5.76 |
% |
|
$ |
6,690,326 |
|
$ |
98,085 |
|
5.83 |
% |
||||||
|
Investments-taxable |
|
1,737,273 |
|
|
|
15,321 |
|
|
3.50 |
% |
|
|
1,818,814 |
|
|
|
14,921 |
|
|
3.29 |
% |
|
|
1,972,859 |
|
|
|
17,188 |
|
|
3.47 |
% |
|
Investments-nontaxable (1) |
|
132,121 |
|
|
|
1,134 |
|
|
3.41 |
% |
|
|
132,576 |
|
|
|
1,143 |
|
|
3.46 |
% |
|
|
135,500 |
|
|
|
1,166 |
|
|
3.42 |
% |
|
Total investments |
|
1,869,394 |
|
|
|
16,455 |
|
|
3.49 |
% |
|
|
1,951,390 |
|
|
|
16,064 |
|
|
3.30 |
% |
|
|
2,108,359 |
|
|
|
18,354 |
|
|
3.46 |
% |
|
Cash at Fed Reserve and other banks |
|
249,646 |
|
|
|
2,790 |
|
|
4.43 |
% |
|
|
144,383 |
|
|
|
1,866 |
|
|
5.18 |
% |
|
|
93,538 |
|
|
|
1,177 |
|
|
5.01 |
% |
|
Total earning assets |
|
9,090,900 |
|
|
|
120,249 |
|
|
5.25 |
% |
|
|
8,973,959 |
|
|
|
116,625 |
|
|
5.21 |
% |
|
|
8,892,223 |
|
|
|
117,616 |
|
|
5.26 |
% |
|
Other assets, net |
|
809,775 |
|
|
|
|
|
|
|
804,875 |
|
|
|
|
|
|
|
774,756 |
|
|
|
|
|
|||||||||
|
Total assets |
$ |
9,900,675 |
|
|
|
|
|
|
$ |
9,778,834 |
|
|
|
|
|
|
$ |
9,666,979 |
|
|
|
|
|
|||||||||
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Interest-bearing demand deposits |
$ |
1,850,733 |
|
|
$ |
6,649 |
|
|
1.43 |
% |
|
$ |
1,804,856 |
|
|
$ |
6,076 |
|
|
1.35 |
% |
|
$ |
1,736,442 |
|
|
$ |
6,132 |
|
|
1.40 |
% |
|
Savings deposits |
|
2,855,750 |
|
|
|
12,965 |
|
|
1.80 |
% |
|
|
2,799,470 |
|
|
|
12,246 |
|
|
1.75 |
% |
|
|
2,686,303 |
|
|
|
13,202 |
|
|
1.96 |
% |
|
Time deposits |
|
1,107,646 |
|
|
|
9,587 |
|
|
3.43 |
% |
|
|
1,102,025 |
|
|
|
9,716 |
|
|
3.54 |
% |
|
|
1,055,612 |
|
|
|
11,354 |
|
|
4.28 |
% |
|
Total interest-bearing deposits |
|
5,814,129 |
|
|
|
29,201 |
|
|
1.99 |
% |
|
|
5,706,351 |
|
|
|
28,038 |
|
|
1.97 |
% |
|
|
5,478,357 |
|
|
|
30,688 |
|
|
2.23 |
% |
|
Other borrowings |
|
17,495 |
|
|
|
3 |
|
|
0.07 |
% |
|
|
22,707 |
|
|
|
92 |
|
|
1.63 |
% |
|
|
175,268 |
|
|
|
2,144 |
|
|
4.87 |
% |
|
Junior subordinated debt |
|
71,477 |
|
|
|
1,228 |
|
|
6.82 |
% |
|
|
101,236 |
|
|
|
1,712 |
|
|
6.78 |
% |
|
|
101,150 |
|
|
|
1,904 |
|
|
7.49 |
% |
|
Total interest-bearing liabilities |
|
5,903,101 |
|
|
|
30,432 |
|
|
2.05 |
% |
|
|
5,830,294 |
|
|
|
29,842 |
|
|
2.05 |
% |
|
|
5,754,775 |
|
|
|
34,736 |
|
|
2.40 |
% |
|
Noninterest-bearing deposits |
|
2,547,471 |
|
|
|
|
|
|
|
2,516,631 |
|
|
|
|
|
|
|
2,542,579 |
|
|
|
|
|
|||||||||
|
Other liabilities |
|
160,568 |
|
|
|
|
|
|
|
158,817 |
|
|
|
|
|
|
|
155,115 |
|
|
|
|
|
|||||||||
|
Shareholders’ equity |
|
1,289,535 |
|
|
|
|
|
|
|
1,273,092 |
|
|
|
|
|
|
|
1,214,510 |
|
|
|
|
|
|||||||||
|
Total liabilities and shareholders’ equity |
$ |
9,900,675 |
|
|
|
|
|
|
$ |
9,778,834 |
|
|
|
|
|
|
$ |
9,666,979 |
|
|
|
|
|
|||||||||
|
Net interest rate spread (1) (2) |
|
|
|
|
3.20 |
% |
|
|
|
|
|
3.16 |
% |
|
|
|
|
|
2.86 |
% |
||||||||||||
|
Net interest income and margin (1) (3) |
|
|
$ |
89,817 |
|
|
3.92 |
% |
|
|
|
$ |
86,783 |
|
|
3.88 |
% |
|
|
|
$ |
82,880 |
|
|
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. |
Net interest income (FTE) during the three months ended September 30, 2025, increased $3.0 million or 3.5% to $89.8 million compared to $86.8 million during the three months ended June 30, 2025. Net interest margin totaled 3.92% for the three months ended September 30, 2025, an increase of 4 basis points from the trailing quarter. The increase in net interest income is primarily attributed to a $3.6 million improvement in interest income on earning assets, led by elevated loan income totaling $2.3 million, primarily related to the benefit from new originations and fee income from increased refinance activity. The net interest margin was further enhanced by reductions in interest expense on junior subordinated debt of $0.7 million as compared to the trailing quarter, resulting from the early extinguishment of subordinated debt with a face value of $57.7 million, a recorded book value of $59.9 million, and a weighted average rate of approximately 6.54% during the period of repayment. As a partial offset to the improvement noted above, there was an increase of $1.2 million in deposit interest expense, primarily attributed to the growth in deposit relationships with businesses and large retail average account balances.
As compared to the same quarter in the prior year, average loan yields decreased 8 basis points from 5.83% during the three months ended September 30, 2024, to 5.75% during the three months ended September 30, 2025. The accretion of discounts from acquired loans added 6 basis points and 6 basis points to loan yields during the quarters ended September 30, 2025 and September 30, 2024, respectively. The cost of interest-bearing deposits decreased by 24 basis points between the quarter ended September 30, 2025, and the same quarter of the prior year. In addition, the average balance of noninterest-bearing deposits increased by $4.9 million from the three-month average for the period ended September 30, 2024.
For the quarter ended September 30, 2025, the ratio of average total noninterest-bearing deposits to total average deposits was 30.5%, as compared to 30.6% and 31.7% for the quarters ended June 30, 2025 and September 30, 2024, respectively.
|
|
Nine months ended September 30, 2025 |
|
Nine months ended September 30, 2024 |
||||||||||||||||||
|
(dollars in thousands) |
Average Balance |
|
Income/ Expense |
|
Yield/ Rate |
|
Average Balance |
|
Income/ Expense |
|
Yield/ Rate |
||||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans |
$ |
6,876,128 |
|
$ |
295,077 |
|
5.74 |
% |
|
$ |
6,755,916 |
|
$ |
292,799 |
|
5.79 |
% |
||||
|
Investments-taxable |
|
1,812,965 |
|
|
|
45,994 |
|
|
3.39 |
% |
|
|
2,034,336 |
|
|
|
52,021 |
|
|
3.42 |
% |
|
Investments-nontaxable (1) |
|
132,690 |
|
|
|
3,426 |
|
|
3.45 |
% |
|
|
137,515 |
|
|
|
3,548 |
|
|
3.45 |
% |
|
Total investments |
|
1,945,655 |
|
|
|
49,420 |
|
|
3.40 |
% |
|
|
2,171,851 |
|
|
|
55,569 |
|
|
3.42 |
% |
|
Cash at Fed Reserve and other banks |
|
200,364 |
|
|
|
6,719 |
|
|
4.48 |
% |
|
|
58,792 |
|
|
|
2,247 |
|
|
5.11 |
% |
|
Total earning assets |
|
9,022,147 |
|
|
|
351,216 |
|
|
5.20 |
% |
|
|
8,986,559 |
|
|
|
350,615 |
|
|
5.21 |
% |
|
Other assets, net |
|
807,433 |
|
|
|
|
|
|
|
781,406 |
|
|
|
|
|
||||||
|
Total assets |
$ |
9,829,580 |
|
|
|
|
|
|
$ |
9,767,965 |
|
|
|
|
|
||||||
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest-bearing demand deposits |
$ |
1,828,709 |
|
|
$ |
18,946 |
|
|
1.39 |
% |
|
$ |
1,738,876 |
|
|
$ |
17,294 |
|
|
1.33 |
% |
|
Savings deposits |
|
2,795,620 |
|
|
|
37,409 |
|
|
1.79 |
% |
|
|
2,670,555 |
|
|
|
36,362 |
|
|
1.82 |
% |
|
Time deposits |
|
1,110,123 |
|
|
|
29,749 |
|
|
3.58 |
% |
|
|
961,577 |
|
|
|
29,582 |
|
|
4.11 |
% |
|
Total interest-bearing deposits |
|
5,734,452 |
|
|
|
86,104 |
|
|
2.01 |
% |
|
|
5,371,008 |
|
|
|
83,238 |
|
|
2.07 |
% |
|
Other borrowings |
|
42,959 |
|
|
|
1,064 |
|
|
3.31 |
% |
|
|
361,175 |
|
|
|
13,640 |
|
|
5.04 |
% |
|
Junior subordinated debt |
|
91,196 |
|
|
|
4,641 |
|
|
6.80 |
% |
|
|
101,128 |
|
|
|
5,574 |
|
|
7.36 |
% |
|
Total interest-bearing liabilities |
|
5,868,607 |
|
|
|
91,809 |
|
|
2.09 |
% |
|
|
5,833,311 |
|
|
|
102,452 |
|
|
2.35 |
% |
|
Noninterest-bearing deposits |
|
2,526,280 |
|
|
|
|
|
|
|
2,584,705 |
|
|
|
|
|
||||||
|
Other liabilities |
|
163,015 |
|
|
|
|
|
|
|
163,704 |
|
|
|
|
|
||||||
|
Shareholders’ equity |
|
1,271,678 |
|
|
|
|
|
|
|
1,186,245 |
|
|
|
|
|
||||||
|
Total liabilities and shareholders’ equity |
$ |
9,829,580 |
|
|
|
|
|
|
$ |
9,767,965 |
|
|
|
|
|
||||||
|
Net interest rate spread (1) (2) |
|
|
|
|
3.11 |
% |
|
|
|
|
|
2.86 |
% |
||||||||
|
Net interest income and margin (1) (3) |
|
|
$ |
259,407 |
|
|
3.84 |
% |
|
|
|
$ |
248,163 |
|
|
3.69 |
% |
||||
|
(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 September 30, 2025, the Company’s loan portfolio consisted of approximately $7.
Contacts
Investor Contact
Peter G. Wiese, EVP & CFO, (530) 898-0300
