TriCo Bancshares (TCBK) 8-K Trico Bancshares Announces Quarterly Results

Exhibit 99.1

PRESS RELEASE	Contact:	Richard P. Smith
For Immediate Release	President & CEO (530) 898-0300

TRICO BANCSHARES ANNOUNCES QUARTERLY RESULTS

CHICO, Calif. – (October 29, 2015) – TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank, today announced earnings of $12,694,000, or $0.55 per diluted share, for the three months ended September 30, 2015. For the three months ended September 30, 2014 the Company reported earnings of $8,234,000, or $0.50 per diluted share. Diluted shares outstanding were 23,005,980 and 16,330,746 for the three months ended September 30, 2015 and 2014, respectively.

On October 3, 2014, TriCo completed its acquisition of North Valley Bancorp. North Valley Bancorp was headquartered in Redding, California, and was the parent of North Valley Bank that had approximately $935 million in assets and 22 commercial banking offices in Shasta, Humboldt, Del Norte, Mendocino, Yolo, Sonoma, Placer and Trinity Counties in Northern California. In connection with the acquisition, North Valley Bank was merged into Tri Counties Bank. Beginning on October 4, 2014, the effect of revenue and expenses from the operations of North Valley Bancorp, and 6,575,550 shares of TriCo Bancshares common shares issued in consideration of the merger are included in the results of the Company.

On October 25, 2014, North Valley Bank’s electronic customer service and other data processing systems were converted into Tri Counties Bank’s systems. Between January 7, 2015 and January 21, 2015, four Tri Counties Bank branches and four former North Valley Bank branches were consolidated into other Tri Counties Bank or other former North Valley Bank branches.

Included in the results of the Company for the three months ended September 30, 2015 and 2014 were $0 and $625,000, respectively, of nonrecurring noninterest expenses related to the merger with North Valley Bancorp of which $0 and $481,000, respectively, were not deductible for income tax purposes. Excluding these nonrecurring merger related expenses, but including the revenue and other expenses from the operations of North Valley Bancorp from July 1, 2015 to September 30, 2015, diluted earnings per share for the three months ended September 30, 2015 and 2014 would have been $0.55 and $0.54, respectively, on earnings of $12,694,000 and $8,799,000, respectively. In addition to these nonrecurring merger related expenses, there were other expenses and revenue items that may be considered nonrecurring during the three months ended September 30, 2015 and 2014, and these items are described below in various sections of this announcement.

The following is a summary of certain of the Company’s consolidated assets and deposits as of the dates indicated:

Ending balances	As of September 30,
(dollars in thousands)	2015		2014		$ Change		% Change
Total assets	$	4,021,628	$	2,794,943	$	1,226,685		43.9	%
Total loans		2,469,566		1,765,871		703,695		39.8	%
Total investments		1,097,368		540,053		557,315		103.2	%
Total deposits	$	3,457,872	$	2,437,356	$	1,020,516		41.9	%
Qtrly Avg balances	As of September 30,
(dollars in thousands)	2015		2014		$ Change		% Change
Total assets	$	3,953,292	$	2,771,972	$	1,181,320		42.6	%
Total loans		2,427,670		1,752,026		675,644		38.6	%
Total investments		1,093,845		494,104		599,741		121.4	%
Total deposits	$	3,390,229	$	2,424,968	$	965,261		39.8	%

Included in the changes in the Company’s assets and deposits from September 30, 2014 to September 30, 2015 is the effect of those assets and deposits acquired as part of the North Valley Bancorp acquisition on October 3, 2014. The following table shows the fair value of consideration transferred, the total identifiable net assets acquired and the resulting goodwill related to the North Valley Bancorp acquisition:

	North Valley Bancorp
(in thousands)	October 3, 2014
Fair value of consideration transferred:
Fair value of shares issued	$	151,303
Cash consideration		7
Total fair value of consideration transferred		151,310
Asset acquired:
Cash and cash equivalents		141,142
Securities available for sale		17,288
Securities held to maturity		189,950
Restricted equity securities		8,279
Loans		499,327
Foreclosed assets		695
Premises and equipment		11,936
Cash value of life insurance		38,075
Core deposit intangible		6,614
Other assets		18,540
Total assets acquired		932,116
Liabilities assumed:
Deposits		801,956
Other liabilities		10,104
Junior subordinated debt		14,987
Total liabilities assumed		827,047
Total net assets acquired		105,069
Goodwill recognized	$	46,241

Also, included in the changes in the Company’s deposits from September 30, 2014 to September 30, 2015 is the addition on September 16, 2015 of an additional $45 million certificate of deposit from the State of California, bringing the total of such certificates of deposits from the State of California to $50 million.

The following is a summary of the components of the Company’s consolidated net income, average common shares, and average diluted common shares outstanding for the periods indicated:

	Three months ended September 30,
(dollars and shares in thousands)	2015			2014			$ Change			% Change
Net Interest Income	$	39,993		$	28,049		$	11,944			42.6	%
Benefit from reversal of provision for loan losses		866			2,977			(2,111	)
Noninterest income		11,642			8,589			3,053			35.5	%
Noninterest expense		(31,439	)		(25,380	)		(6,059	)		23.9	%
Provision for income taxes		(8,368	)		(6,001	)		(2,367	)		39.4	%
Net income	$	12,694		$	8,234		$	4,460			54.2	%
Average common shares		22,757			16,137			6,620			41.0	%
Average diluted common shares		23,006			16,331			6,675			40.9	%

The following table shows the components of net interest income and net interest margin on a fully tax-equivalent (FTE) basis for the periods indicated:

ANALYSIS OF CHANGE IN NET INTEREST MARGIN ON EARNING ASSETS

	(unaudited, dollars in thousands)
	Three Months Ended								Three Months Ended								Three Months Ended
	September 30, 2015								June 30, 2015								September 30, 2014
	Average		Income/			Yield/			Average		Income/			Yield/			Average		Income/			Yield/
	Balance		Expense			Rate			Balance		Expense			Rate			Balance		Expense			Rate
Assets
Earning assets
Loans	$	2,427,670	$	33,814			5.57	%	$	2,355,864	$	32,019			5.44	%	$	1,752,026	$	24,980			5.70	%
Investments—taxable		1,028,931		6,923			2.69	%		1,020,806		7,380			2.89	%		478,223		3,823			3.20	%
Investments—nontaxable		64,914		797			4.91	%		43,336		518			4.78	%		15,881		184			4.63	%
Cash at Federal Reserve and other banks		95,397		97			0.41	%		143,919		144			0.40	%		315,267		213			0.27	%
Total earning assets		3,616,912		41,631			4.60	%		3,563,925		40,061			4.50	%		2,561,398		29,200			4.56	%
Other assets, net		336,380								330,271								210,575
Total assets	$	3,953,292							$	3,894,196							$	2,771,972
Liabilities and shareholders’ equity
Interest-bearing
Demand deposits	$	813,581		117			0.06	%	$	796,958		116			0.06	%	$	556,406		111			0.08	%
Savings deposits		1,178,684		368			0.12	%		1,165,530		362			0.12	%		870,615		273			0.13	%
Time deposits		324,427		353			0.44	%		336,212		376			0.45	%		256,155		388			0.61	%
Other borrowings		6,994		1			0.05	%		7,894		1			0.06	%		6,829		0			0.00	%
Trust preferred securities		56,394		500			3.55	%		56,344		491			3.49	%		41,238		310			3.01	%
Total interest-bearing liabilities		2,380,081		1,339			0.23	%		2,362,938		1,346			0.23	%		1,731,243		1,082			0.25	%
Noninterest-bearing deposits		1,073,537								1,049,174								741,792
Other liabilities		60,314								51,483								33,089
Shareholders’ equity		439,360								430,601								265,848
Total liabilities and shareholders’ equity	$	3,953,292							$	3,894,196							$	2,771,972
Net interest rate spread							4.37	%							4.27	%							4.31	%
Net interest income/net interest margin (FTE)				40,292			4.46	%				38,715			4.35	%				28,118			4.39	%
FTE adjustment				(299	)							(194	)							(69	)
Net interest income (not FTE)			$	39,993							$	38,521							$	28,049

Net interest income (FTE) during the three months ended September 30, 2015 increased $12,174,000 (43.3%) from the same period in 2014 to $40,292,000. The increase in net interest income (FTE) was due primarily to a $675,644,000 (38.6%) increase in the average balance of loans to $2,427,670,000, and a $599,741,000 (121%) increase in the average balance of investments to $1,093,845,000 that were partially offset by a 13 basis point decrease in the average yield on loans from 5.70% during the three months ended September 30, 2014 to 5.57% during the three months ended September 30, 2015, and a 42 basis point decrease in the average yield on investments from 3.24% during the three months ended September 30, 2014 to 2.82% during the three months ended September 30, 2015. The $675,644,000 increase in average loan balances from the year ago quarter was primarily due to the addition of $499,327,000 of loans through the acquisition of North Valley Bancorp on October 4, 2014, and moderate to strong organic loan growth during the quarter and nine months ended September 30, 2015. The $599,741,000 increase in average investment balances from the year-ago quarter was primarily due to the use of cash at the Federal Reserve and other banks to purchase investments and the addition of $212,616,000 of investments through the acquisition of North Valley Bancorp on October 4, 2014. The 13 basis point decrease in average loan yields is due primarily to declines in market yields on new and renewed loans compared to yields on repricing, maturing, and paid off loans. The decrease in average investment yields is due primarily to declines in market yields on new investments compared to yields on existing investments. The increases in average loan and investment balances added $9,628,000 and $4,974,000, respectively, to net interest income (FTE) while the decreases in average loan and investment yields reduced net interest income (FTE) by $794,000 and $1,261,000, respectively, when compared to the year-ago quarter. Included in interest income during the three months ended September 30, 2015 was $3,125,000 of discount accretion from purchased loans compared to $1,514,000 of

discount accretion from purchased loans during the three months ended September 30, 2014. The discount accretion of $3,125,000 and $1,514,000 added 51 and 34 basis points, respectively, to the average yield on loans during the three months ended September 30, 2015 and 2014, respectively. Included in the $3,125,000 of discount accretion during the three months ended September 30, 2015 was $900,000 from two purchased credit impaired loans that paid off in full with respect to principal and interest during the quarter. In addition to the $900,000 of discount that was accreted to interest income was $84,000 of interest payments associated with these two loans that was previously applied to principal, and was recovered and included in interest income during the three months ended September 30, 2015. The average quarterly discount accretion for the four quarters prior to the quarter ended September 30, 2015 was $2,008,000.

Loans acquired through purchase or acquisition of other banks are classified by the Company as Purchased Not Credit Impaired (PNCI), Purchased Credit Impaired – cash basis (PCI – cash basis), or Purchased Credit Impaired – other (PCI – other). Loans not acquired in an acquisition or otherwise “purchased” are classified as “originated”. Often, such purchased loans are purchased at a discount to face value, and part of this discount is accreted into (added to) interest income over the remaining life of the loan. Generally, as time goes on, the effect of this discount accretion decreases as these purchased loans mature or pay off early. Further details regarding interest income from loans, including fair value discount accretion, may be found under the heading “Supplemental Loan Interest Income Data” in the Consolidated Financial Data table at the end of this press release.

The Company recorded a reversal of provision for loan losses of $866,000 during the three months ended September 30, 2015 compared to a reversal of provision for loan losses of $2,977,000 during the three months ended September 30, 2014. The reversal of provision for loan losses during the three months ended September 30, 2015 was due to net recoveries of $1,929,000 that were partially offset by a $1,063,000 increase in the required allowance for loan losses from $35,455,000 at June 30, 2015 to $36,518,000 at September 30, 2015. The $1,929,000 of net recoveries during the three months ended September 30, 2015 was primarily due to a recovery of $1,717,000 related to one residential construction loan. The increase in the required allowance for loan losses was due primarily to the change in allowance methodology noted below, and a $75,804,000 increase in loan balances from $2,393,762,000 at June 30, 2015 to $2,469,566,000 at September 30, 2015 that were partially offset by the effect of reduced impaired loans, improvements in estimated cash flows and collateral values for the remaining and newly impaired loans, and reductions in historical loss factors that, in part, determine the required loan loss allowance for performing loans in accordance with the Company’s allowance for loan losses methodology. During the three months ended September 30, 2015, nonperforming loans decreased $982,000 (2.5%) to $38,898,000, and represented a decrease from 1.67% of loans outstanding as of June 30, 2015 to 1.58% of loans outstanding as of September 30, 2015.

During the three months ended September 30, 2015, the Company modified its methodology used to determine the allowance for home equity lines of credit that are about to exit their revolving period, or have recently entered into their amortization period and are now classified as home equity loans. This change in methodology increased the required allowance for such lines and loans by $859,000, and $459,000, respectively, and represents the increase in estimated incurred losses in these lines and loans as of September 30, 2015 due to higher required contractual principal and interest payments of such lines and loans.

The following table presents the key components of noninterest income for the periods indicated:

	Three months ended September 30,
(dollars in thousands)	2015			2014			$ Change			% Change
Service charges on deposit accounts	$	3,642		$	2,885		$	757			26.2	%
ATM fees and interchange		3,344			2,329			1,015			43.6	%
Other service fees		772			545			227			41.7	%
Mortgage banking service fees		521			419			102			24.3	%
Change in value of mortgage servicing rights		(585	)		(88	)		(497	)		564.8	%
Total service charges and fees		7,694			6,090			1,604			26.3	%
Gain on sale of loans		722			509			213			41.8	%
Commission on NDIP		812			703			109			15.5	%
Increase in cash value of life insurance		770			490			280			57.1	%
Change in indemnification asset		(26	)		14			(40	)		(285.7	%)
Gain on sale of foreclosed assets		356			385			(29	)		(7.5	%)
Other noninterest income		1,314			398			916			230.2	%
Total other noninterest income		3,948			2,499			1,449			58.0	%
Total noninterest income	$	11,642		$	8,589		$	3,053			35.5	%

Noninterest income increased $3,053,000 (35.5%) to $11,642,000 during the three months ended September 30, 2015 compared to the three months ended September 30, 2014. The increase in noninterest income was due primarily to an increase in service charges on deposit accounts of $757,000 (26.2%) to $3,642,000, an increase in ATM fees and interchange revenue of $1,015,000 (43.6%) to $3,344,000, and an increase in other noninterest income of $916,000 (230%) to $1,314,000, that were partially offset by a decrease in change in value of mortgage servicing rights (MSRs) of $497,000 from a negative $88,000 to a negative $585,000, compared to the year-ago quarter. Except for the $916,000 increase in other noninterest income, the increases in the various categories of noninterest income noted in the table above, are primarily the result of the acquisition of North Valley Bancorp on October 4, 2014. The $916,000 increase in other noninterest income noted above was primarily due to $870,000 of recoveries of loans from acquired institutions that were charged off prior to acquisition of those institutions by the Company. As such, these “pre-acquisition charge offs” were properly not recorded by the Company, and any related recoveries are recorded in other noninterest income by the Company. The $497,000 decrease in change in value of mortgage servicing rights is primarily due to the relative level of increase in mortgage rates during the three months ended September 30, 2015 compared to the three months ended September 30, 2014, and the negative impact those increases in mortgage rates had on the value of mortgage servicing rights during those periods.

The following table presents the key components of the Company’s noninterest expense for the periods indicated:

	Three months ended September 30,
(dollars in thousands)	2015			2014		$ Change			% Change
Salaries	$	11,562		$	9,066	$	2,496			27.5	%
Commissions and incentives		1,674			1,265		409			32.3	%
Employee benefits		4,297			3,038		1,259			41.4	%
Total salaries and benefits expense		17,533			13,369		4,164			31.1	%
Occupancy		2,599			1,971		628			31.9	%
Equipment		1,417			995		422			42.4	%
Change in reserve for unfunded commitments		(40	)		175		(215	)		(122.9	%)
Data processing and software		1,869			1,577		292			18.5	%
Telecommunications		658			648		10			1.5	%
ATM network charges		757			657		100			15.2	%
Professional fees		999			903		96			10.6	%
Advertising and marketing		926			581		345			59.4	%
Postage		314			179		135			75.4	%
Courier service		303			269		34			12.6	%
Intangible amortization		290			53		237			447.2	%
Operational losses		201			138		63			45.7	%
Provision for foreclosed asset losses		106			98		8			8.2	%
Foreclosed asset expense		105			94		11			11.7	%
Assessments		642			493		149			30.2	%
Merger related expense		—			625		(625	)		(100.0	%)
Other		2,760			2,555		205			8.0	%
Total other noninterest expense		13,906			12,011		1,895			15.8	%
Total noninterest expense	$	31,439		$	25,380	$	6,059			23.9	%
Average full time equivalent employees		934			717		217			30.3	%
Merger expense:
Data processing and software		—		$	60
Professional fees		—		$	565
Other		—			—
Total merger expense		—		$	625

Salary and benefit expenses increased $4,164,000 (31.1%) to $17,533,000 during the three months ended September 30, 2015 compared to the three months ended September 30, 2014. Base salaries, incentive compensation and benefits and other compensation expense increased $2,496,000 (27.5%), $409,000 (32.3%), and $1,259,000 (41.4%), respectively, to $11,562,000, $1,674,000 and $4,297,000, respectively, during the three months ended September 30, 2015. The increases in these categories of salary and benefits expense are primarily due to the Company’s acquisition of North Valley Bancorp on October 4, 2014. The average number of full-time equivalent staff increased 217 (30.3%) from 717 during the three months ended September 30, 2014 to 934 for the three months ended September 30, 2015.

Other noninterest expense increased $1,895,000 (15.8%) to $13,906,000 during the three months ended September 30, 2015 compared to the three months ended September 30, 2014. The increase in other noninterest expense was primarily due to the Company’s acquisition of North Valley Bancorp on October 4, 2014. Nonrecurring merger expenses related to the North Valley Bancorp acquisition totaling $0 and $625,000 are included in other noninterest expense for the three months ended September 30, 2015 and 2014, respectively, of which $0 and $481,000 were not deductible for income tax purposes, respectively. As of March 31, 2015, the Company had substantially completed all of its previously planned facility consolidations related to the North Valley Bancorp acquisition. Subsequent to March 31, 2015, and following a thorough analysis of profitability and market opportunity, the Company identified five additional branches for closure. Two of those branches are former North Valley Bank branches. As of June 30, 2015 one of the five additional branches slated for closure has been consolidated into another branch and closed. As of August 31, 2015 the four remaining branches were consolidated into other branches and closed.

Richard Smith, President and CEO of the Company commented, “Our operating results for the third quarter of 2015 were very strong. Loan growth in all areas continued to drive interest income for the Bank. Loan demand is very balanced by loan category and geographic distribution. Continued low interest rates continue to provide favorable metrics so that customers may borrow money and grow, expand or refinance their business operations. While competition for loans remains strong, we continue to have success in all of our market areas. In addition, non-interest income was very strong during the quarter, which reflects the full integration of the acquisition of North Valley Bancorp that occurred on October 3, 2014. We continue to look for opportunities to improve and grow our banking business.”

Smith added, “As announced on October 28, 2015, we have agreed to purchase three branch locations from Bank of America in the Northwest corner of California. Combined with the branches acquired from North Valley Bancorp in October 2014, our branch network in this area is estimated to exceed $400 million in deposits upon completion of the purchase. We have estimated that this transaction will close in March of 2016. We are particularly excited to have the experienced branch banking team from Bank of America joining our team.”

On October 28, 2015, the Company announced that its subsidiary, Tri Counties Bank, has entered into an agreement to purchase three branches on the North Coast of California from Bank of America. The branches are located in the cities of Arcata, Eureka, and Fortuna in Humboldt County. TriCo anticipates assuming approximately $245 million in deposits and purchasing approximately $400 thousand in loans.

In addition to the historical information contained herein, this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to various uncertainties and risks that could affect their outcome. The Company’s actual results could differ materially. Factors that could cause or contribute to such differences include, but are not limited to, variances in the actual versus projected growth in assets, return on assets, interest rate fluctuations, economic conditions in the Company’s primary market area, demand for loans, regulatory and accounting changes, loan losses, expenses, rates charged on loans and earned on securities investments, rates paid on deposits, competition effects, fee and other noninterest income earned, the Company’s ability to effectively integrate the business of North Valley Bancorp, as well as other factors detailed in the Company’s reports filed with the Securities and Exchange Commission which are incorporated herein by reference, including the Form 10-K for the year ended December 31, 2014. These reports and this entire press release should be read to put such forward-looking statements in context and to gain a more complete understanding of the uncertainties and risks involved in the Company’s business. The Company does not intend to update any of the forward-looking statements after the date of this release.

Established in 1975, Tri Counties Bank is a wholly-owned subsidiary of TriCo Bancshares (NASDAQ: TCBK) headquartered in Chico, California, providing a unique brand of customerService with Solutions available in traditional stand-alone and in-store bank branches in communities throughout Northern and Central California. Tri Counties Bank provides an extensive and competitive breadth of consumer, small business and commercial banking financial services, along with convenient around-the-clock ATM, online and mobile banking access. Brokerage services are provided by the Bank’s investment services through affiliation with Raymond James Financial Services, Inc. Visitwww.TriCountiesBank.com to learn more.

TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands, except share data)

	Three months ended
	September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014
Statement of Income Data
Interest income	$	41,332		$	39,867		$	37,725		$	36,407		$	29,131
Interest expense		1,339			1,346			1,382			1,437			1,082
Net interest income		39,993			38,521			36,343			34,970			28,049
(Benefit from) provision for loan losses		(866	)		(633	)		197			(1,421	)		(2,977	)
Noninterest income:
Service charges and fees		7,694			8,848			7,344			7,165			6,090
Other income		3,948			3,232			2,836			2,590			2,499
Total noninterest income		11,642			12,080			10,180			9,755			8,589
Noninterest expense:
Base salaries net of deferred loan origination costs		11,562			11,502			11,744			12,402			9,066
Incentive compensation expense		1,674			1,390			1,596			1,475			1,265
Employee benefits and other compensation expense		4,297			4,350			4,760			3,678			3,038
Total salaries and benefits expense		17,533			17,242			18,100			17,555			13,369
Other noninterest expense		13,906			15,194			14,182			19,011			12,011
Total noninterest expense		31,439			32,436			32,282			36,566			25,380
Income before taxes		21,062			18,798			14,044			9,580			14,235
Net income	$	12,694		$	11,366		$	8,336		$	5,650		$	8,234
Share Data
Basic earnings per share	$	0.56		$	0.50		$	0.37		$	0.25		$	0.51
Diluted earnings per share	$	0.55		$	0.49		$	0.36		$	0.25		$	0.50
Book value per common share	$	19.48		$	18.95		$	18.68		$	18.42		$	16.57
Tangible book value per common share	$	16.42		$	15.88		$	15.59		$	15.39		$	15.56
Shares outstanding		22,764,295			22,749,523			22,740,503			22,714,964			16,139,414
Weighted average shares		22,757,453			22,744,926			22,727,038			22,500,544			16,136,675
Weighted average diluted shares		23,005,980			22,980,033			22,949,902			22,726,795			16,330,746
Credit Quality
Nonperforming originated loans	$	24,052		$	23,812		$	34,576		$	32,529		$	33,849
Total nonperforming loans		38,898			39,880			49,217			47,589			40,643
Foreclosed assets, net of allowance		5,285			5,393			5,892			4,894			5,096
Loans charged-off		687			514			1,235			419			345
Loans recovered	$	2,616		$	547		$	508		$	505		$	1,274
Selected Financial Ratios
Return on average total assets		1.28	%		1.17	%		0.86	%		0.59	%		1.19	%
Return on average equity		11.56	%		10.56	%		7.85	%		5.34	%		12.39	%
Average yield on loans		5.57	%		5.44	%		5.46	%		5.46	%		5.70	%
Average yield on interest-earning assets		4.60	%		4.50	%		4.25	%		4.16	%		4.56	%
Average rate on interest-bearing liabilities		0.23	%		0.23	%		0.23	%		0.25	%		0.25	%
Net interest margin (fully tax-equivalent)		4.46	%		4.35	%		4.10	%		3.99	%		4.39	%
Supplemental Loan Interest Income Data:
Discount accretion PCI - cash basis loans	$	445		$	404		$	172		$	107		$	290
Discount accretion PCI - other loans		1,090			907			1,011			919			822
Discount accretion PNCI loans		1,590			822			1,348			827			402
All other loan interest income	$	30,689			29,886			28,371			28,883			23,466
Total loan interest income	$	33,814		$	32,019		$	31,165		$	30,736		$	24,980

TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands)

	Three months ended
	September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014
Balance Sheet Data
Cash and due from banks	$	209,298		$	169,503		$	281,228		$	610,728		$	369,679
Securities, available for sale		329,361			284,430			225,126			83,205			84,962
Securities, held to maturity		751,051			776,283			802,482			676,426			443,509
Restricted equity securities		16,956			16,956			16,956			16,956			11,582
Loans held for sale		5,152			4,630			5,413			3,579			2,724
Loans:
Commercial loans		199,330			195,791			177,540			174,945			135,085
Consumer loans		403,081			411,788			410,727			417,084			373,620
Real estate mortgage loans		1,757,082			1,686,567			1,646,863			1,615,359			1,214,153
Real estate construction loans		110,073			99,616			85,753			75,136			43,013
Total loans, gross		2,469,566			2,393,762			2,320,883			2,282,524			1,765,871
Allowance for loan losses		(36,518	)		(35,455	)		(36,055	)		(36,585	)		(37,920	)
Foreclosed assets		5,285			5,393			5,892			4,894			5,096
Premises and equipment		42,334			42,056			42,846			43,493			32,181
Cash value of life insurance		94,458			93,687			93,012			92,337			53,596
Goodwill		63,462			63,462			63,462			63,462			15,519
Other intangible assets		6,184			6,473			6,762			7,051			726
Mortgage servicing rights		7,467			7,814			7,057			7,378			5,985
Accrued interest receivable		10,212			10,064			9,794			9,275			6,862
Other assets		47,360			54,797			51,002			51,735			34,571
Total assets	$	4,021,628			3,893,855			3,895,860			3,916,458			2,794,943
Deposits:
Noninterest-bearing demand deposits		1,100,607			1,060,650			1,034,012			1,083,900			762,452
Interest-bearing demand deposits		817,034			780,647			795,471			782,385			553,053
Savings deposits		1,187,238			1,179,836			1,172,257			1,156,126			872,432
Time certificates		352,993			320,549			347,748			358,012			249,419
Total deposits		3,457,872			3,341,682			3,349,488			3,380,423			2,437,356
Accrued interest payable		795			797			852			978			753
Reserve for unfunded commitments		2,085			2,125			2,015			2,145			2,220
Other liabilities		53,681			55,003			53,256			49,192			33,331
Other borrowings		6,859			6,735			9,096			9,276			12,665
Junior subordinated debt		56,991			56,369			56,320			56,272			41,238
Total liabilities		3,578,283			3,462,711			3,471,027			3,498,286			2,527,563
Total shareholders’ equity		443,345			431,144			424,833			418,172			267,380
Accumulated other comprehensive gain (loss)		(2,298	)		(4,726	)		(2,083	)		(2,203	)		1,796
Average loans		2,427,670			2,355,864			2,283,622			2,253,025			1,752,026
Average interest-earning assets		3,616,912			3,563,925			3,557,103			3,512,620			2,561,398
Average total assets		3,953,292			3,894,196			3,892,476			3,806,049			2,771,972
Average deposits		3,390,229			3,347,874			3,350,370			3,276,470			2,424,968
Average total equity	$	439,360		$	430,601		$	424,701		$	423,502		$	265,848
Total risk based capital ratio		15.2	%		15.2	%		15.2	%		15.6	%		14.8	%
Tier 1 capital ratio		13.9	%		13.9	%		14.0	%		14.4	%		13.5	%
Tier 1 common equity ratio		12.3	%		12.2	%		12.1	%		n/a			n/a
Tier 1 leverage ratio		11.0	%		10.9	%		10.7	%		10.8	%		10.5	%
Tangible capital ratio		9.5	%		9.4	%		9.3	%		9.1	%		9.0	%