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. – (April 28, 2016) – TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank, today announced earnings of $10,674,000, or $0.46 per diluted share, for the three months ended March 31, 2016. For the three months ended March 31, 2015 the Company reported earnings of $8,336,000, or $0.36 per diluted share. Diluted shares outstanding were 23,046,165 and 22,949,902 for the three months ended March 31, 2016 and 2015, respectively.

Included in the results of the Company for the three months ended March 31, 2016 was $622,000 of nonrecurring noninterest expense related to the Company’s acquisition of three bank branches from Bank of America on March 18, 2016. Included in the results of the Company for the three months ended March 31, 2015 was $586,000 of nonrecurring noninterest expense related to the Company’s merger with, and integration of, North Valley Bancorp that occurred on October 3, 2014. Excluding these nonrecurring merger and acquisition related expenses, but including the revenue and other expenses from the operations of the three acquired Bank of America branches from March 18, 2016, and the operations of North Valley Bancorp from October 4, 2014, diluted earnings per share for the three months ended March 31, 2016 and 2015 would have been higher by $0.02 and $0.02 than reported above, respectively, on earnings of $11,035,000 and $8,676,000, respectively. In addition to these nonrecurring merger and acquisition related expenses, there were other expense and revenue items during the three months ended March 31, 2016 and 2015 that may be considered nonrecurring, and these items are described below in various sections of this announcement.

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
	March 31,
(dollars and shares in thousands)		2016			2015		$	Change		% Change
Net Interest Income	$	41,402		$	36,343		$	5,059		13.9%
Provision for loan losses		(209	)		(197	)		(12	)
Noninterest income		9,790			10,180			(390	)	(3.8%	)
Noninterest expense		(33,751	)		(32,282	)		(1,469	)	4.6%
Provision for income taxes		(6,558	)		(5,708	)		(850	)	14.9%
Net income	$	10,674		$	8,336		$	2,338		28.0%
Average common shares		22,783			22,727			56		0.2%
Average diluted common shares		23,046			22,950			96		0.4%

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

Ending balances	As of March 31,
(dollars in thousands)	2016		2015		$ Change		% Change
Total assets	$	4,394,956	$	3,895,860	$	499,096		12.8%
Total loans		2,541,547		2,320,883		220,664		9.5%
Total investments		1,199,543		1,044,564		154,979		14.8%
Total deposits	$	3,785,040	$	3,349,488	$	435,552		13.0%
Qtrly Avg balances	As of March 31,
(dollars in thousands)	2016		2015		$ Change		% Change
Total assets	$	4,212,388	$	3,892,476	$	319,912		8.2%
Total loans		2,537,574		2,283,622		253,952		11.1%
Total investments		1,184,106		927,878		256,228		27.6%
Total deposits	$	3,616,618	$	3,350,370	$	266,248		7.9%

Included in the changes in the Company’s deposits from March 31, 2015 to March 31, 2016 is the addition of a $45 million certificate of deposit from the State of California on September 16, 2015, bringing the total of such certificates of deposit from the State of California to $50 million, and the addition of $161 million of deposits from the acquisition of three bank branches from Bank of America on March 18, 2016.

On March 18, 2016, Tri Counties Bank acquired three branches from Bank of America. The branches are located in the cities of Arcata, Eureka, and Fortuna in Humboldt County, California. The Bank paid $3,204,000 for deposit relationships with balances of $161,231,000 and loans with balances of $289,000, and received $159,520,000 in cash from Bank of America.

The following table discloses the fair value of consideration transferred, the total identifiable net assets acquired and the resulting goodwill relating to the acquisition of three branch banking offices and certain deposits from Bank of America on March 18, 2016:

(in thousands)	March 18, 2016
Fair value of consideration transferred:
Cash consideration	$	3,204
Total fair value of consideration		3,204
Asset acquired:
Cash and cash equivalents		159,520
Loans		289
Premises and equipment		1,590
Core deposit intangible		2,046
Other assets		141
Total assets acquired		163,586
Liabilities assumed:
Deposits		161,231
Total liabilities assumed		161,231
Total net assets acquired		2,355
Goodwill recognized	$	849

Included in the Company’s results of operations for the three months ended March 31, 2016 is the impact of the Company’s acquisition, on March 18, 2016, of three branch offices from Bank of America that included the acquisition of deposit relationships with balances totaling $161,231,000. Interest expense associated with the acquired deposit relationships was $5,000 from March 18, 2016 to March 31, 2016, and interest income from the net cash received in the transaction was estimated to be $27,000, assuming it was invested in Fed funds at an annualized earnings rate of 0.50%. Direct noninterest income and expense related to these branches from March 18, 2016 to March 31, 2016 were $14,000 and $659,000, respectively. Included in the $659,000 of noninterest expense related to these branches for the three months ended March 31, 2016 was $10,000 of core deposit intangible amortization, and $622,000 of nonrecurring acquisition expenses such as system conversion and customer communication related expenses. Other (indirect) noninterest income and expenses related to these branches and associated deposits, such as, increased data processing expense, are not readily distinguishable on a branch by branch basis.

Also included in the Company’s results of operations for the three months ended March 31, 2016 is the impact of the sale, on March 31, 2016, of twenty-seven nonperforming loans, nine substandard performing loans, and three purchased credit impaired loans with total contractual principal balances outstanding of $31,487,000, and recorded book value, including pre-sale write downs and purchase discounts, of approximately $24,810,000. Net proceeds from the sale of these loans were $27,049,000, and resulted in additional net loan write downs of $21,000, the recovery of $1,237,000 of interest income that was previously applied to the principal balance of loans in nonaccrual status, and a gain on sale of loans of $103,000.

The twenty-seven nonperforming loans that were sold had a total recorded value of $13,058,000, and were sold for net proceeds of $14,973,000, resulting in the recovery of $575,000 of previously charged off principal balances, the recognition of $1,237,000 of interest income from interest payments previously applied to principal balances on nonaccrual loans, and a gain on sale of $103,000. The $13,058,000 recorded value of these nonperforming loans was the result of contractual principal balances outstanding of $17,169,000, less $1,578,000 of principal balances previously charged off, less $2,684,000 of interest payments previously applied to principal balances on nonaccrual loans, and the addition of $151,000 of unamortized loan purchase premiums net of unearned deferred loan fees.

The nine substandard performing loans that were sold had a total recorded value of $9,508,000, and were sold for net proceeds of $8,912,000, resulting in a net loan principal write down and charge off of $596,000. The $9,508,000 recorded value of these performing loans was the result of contractual principal balances outstanding of $10,438,000, less $930,000 of unamortized loan purchase discounts and unearned deferred loan fees.

Prior to their sale, the three loans with deteriorated credit quality acquired in a business combination were accounted for under Accounting Standards Codification Topic 310-30 using the “pooled method” of accounting for loans acquired with deteriorated credit quality. The Company classifies these types of loans in a category of loan it refers to as Purchased Credit Impaired-other (PCI-other) loans. The combined contractual principal balance of the three PCI-other loans sold on March 31, 2016 was $3,880,000, and they were sold for net proceeds of $3,164,000. The net sale proceeds of $3,164,000, along with other cash flows received on these loans during the three months ended March 31, 2016, represented a $446,000 decrease in estimated cash flows over their estimated remaining lives when compared to their previous estimated cash flows as of December 31, 2015. Previously, these three PCI-other loans were expected to be resolved by September 30, 2017. As a result of the magnitude and timing of the decrease in estimated cash flows for these three PCI-other loans, the loan pools associated with these PCI-other loans experienced an increase in interest income of $23,000 during the three months ended March 31, 2016, but are expected to realize a decrease in interest income of $469,000 over the remaining lives of the associated loan pools when compared to projected interest income under the previous (December 31, 2015) estimated cash flows for these three PCI-other loans.

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’s primary source of revenue is net interest income, or the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities. Following is a summary of the components of net interest income for the periods indicated (dollars in thousands):

	Three months ended March 31,
		2016			2015
Interest income	$	42,794		$	37,725
Interest expense		(1,392	)		(1,382	)
FTE adjustment		538			97
Net interest income (FTE)	$	41,940		$	36,440
Net interest margin (FTE)		4.33	%		4.10	%
Purchased loan discount accretion	$	1,092		$	2,794
Interest income recovered from sale of loans	$	1,264			—
Effect of purchased loan discount accretion on net interest margin (FTE)		0.11	%		0.31	%
Effect of interest income recovered from sale of loans on net interest margin (FTE)		0.13	%		—

Net interest income (FTE) during the first quarter of 2016 increased $5,500,000 (15.1%) from the same period in 2015 to $41,940,000. The increase in net interest income (FTE) was due primarily to a $253,952,000 (11.1%) increase in the average balance of loans to $2,537,574,000, and a $256,228,000 (27.6%) increase in the average balance of investments to $1,184,106,000 that were partially offset by a 12 basis point decrease in the average yield on Investments-taxable from 2.71% during the three months ended March 31, 2015 to 2.59% during the three months ended March 31, 2016. The $253,952,000 increase in average loan balances from the year ago quarter was entirely organic growth as no loans were purchased during 2015 or the three months ended March 31, 2016. The $253,952,000 increase in average loan balances and the $256,228,000 increase in average investment balances, from the year-ago quarter, were funded by the use of cash at the Federal Reserve and other banks that in turn was substantially funded by a $266,248,000 (7.9%) increase in average balance of deposits to $3,616,618,000 compared to the year-ago quarter. The decrease in the average yield on Investments-taxable was 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 $3,466,000 and $2,230,000, respectively, to net interest income (FTE) while the decreases in average Investments-taxable yield reduced net interest income (FTE) by $310,000, when compared to the year-ago quarter.

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
		March 31, 2016							December 31, 2015							March 31, 2015
		Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/
		Balance		Expense		Rate			Balance		Expense		Rate			Balance		Expense		Rate
Assets
Earning assets
Loans	$	2,537,574	$	34,738		5.48	%	$	2,489,406	$	34,838		5.60	%	$	2,283,622	$	31,165		5.46	%
Investments—taxable		1,068,018		6,920		2.59	%		1,044,063		6,983		2.68	%		906,366		6,135		2.71	%
Investments—nontaxable		116,088		1,435		4.94	%		68,929		841		4.88	%		21,512		258		4.80	%
Cash at Federal Reserve and other banks		155,106		239		0.62	%		174,746		143		0.33	%		345,603		264		0.31	%
Total earning assets		3,876,786		43,332		4.47	%		3,777,144		42,805		4.53	%		3,557,103		37,822		4.25	%
Other assets, net		335,602							338,225							335,373
Total assets	$	4,212,388						$	4,115,369						$	3,892,476
Liabilities and shareholders’ equity
Interest-bearing
Demand deposits	$	846,189		116		0.05	%	$	830,172		118		0.06	%	$	792,204		125		0.06	%
Savings deposits		1,274,868		397		0.12	%		1,231,687		388		0.13	%		1,156,710		357		0.12	%
Time deposits		340,847		342		0.40	%		347,742		337		0.39	%		353,616		417		0.47	%
Other borrowings		18,264		2		0.04	%		10,189		1		0.04	%		9,614		1		0.04	%
Trust preferred securities		56,494		535		3.79	%		56,345		505		3.59	%		56,296		482		3.42	%
Total interest-bearing liabilities		2,536,662		1,392		0.22	%		2,476,135		1,349		0.22	%		2,368,440		1,382		0.23	%
Noninterest-bearing deposits		1,154,714							1,133,822							1,047,840
Other liabilities		59,492							54,999							51,495
Shareholders’ equity		461,520							450,413							424,701
Total liabilities and shareholders’ equity	$	4,212,388						$	4,115,369						$	3,892,476
Net interest rate spread						4.25	%						4.31	%						4.02	%
Net interest income/net interest margin (FTE)				41,940		4.33	%				41,456		4.39	%				36,440		4.10	%
FTE adjustment				(538	)						(315	)						(97	)
Net interest income (not FTE)			$	41,402						$	41,141						$	36,343

The Company recorded a provision for loan losses of $209,000 during the three months ended March 31, 2016 compared to a provision for loan losses of $197,000 during the three months ended March 31, 2015. The $209,000 provision for loan losses during the three months ended March 31, 2016 was due to a $377,000 increase in the required allowance for loan losses from $36,011,000 at December 31, 2015 to $36,388,000 at March 31, 2016 that was partially offset by net recoveries of $168,000. The increase in the required allowance for loan losses was due primarily to reductions in estimated cash flows and collateral values for impaired originated and purchased loans, and a $18,610,000 increase in loan balances from $2,522,937,000 at December 31, 2015 to $2,541,547,000 at March 31, 2016. During the three months ended March 31, 2016 nonperforming loans decreased $13,085,000 (35.3%) to $24,034,000, and represented a decrease from 1.47% of loans outstanding as of December 31, 2015 to 0.95% of loans outstanding as of March 31, 2016. The decrease in nonperforming loans was due to the loan sales noted above.

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

	Three months ended
		March 31,
(dollars in thousands)		2016			2015		$	Change		% Change
Service charges on deposit accounts	$	3,365		$	3,600		($	235	)	(6.5	%)
ATM fees and interchange		3,393			3,002			391		13.0	%
Other service fees		728			714			14		2.0	%
Mortgage banking service fees		517			534			(17	)	(3.2	%)
Change in value of mortgage servicing rights		(698	)		(506	)		(192	)	37.9	%
Total service charges and fees		7,305			7,344			(39	)	(0.5	%)
Gain on sale of loans		802			622			180		28.9	%
Commission on NDIP		532			965			(433	)	(44.9	%)
Increase in cash value of life insurance		696			675			21		3.1	%
Change in indemnification asset		(115	)		(65	)		(50	)	76.9	%
Gain on sale of foreclosed assets		92			311			(219	)	(70.4	%)
Other noninterest income		478			328			150		45.7	%
Total other noninterest income		2,485			2,836			(351	)	(12.4	%)
Total noninterest income	$	9,790		$	10,180		($	390	)	(3.8	%)

Noninterest income decreased $390,000 (3.8%) to $9,790,000 during the three months ended March 31, 2016 when compared to the three months ended March 31, 2015. The decrease in noninterest income was due primarily to a $433,000 (44.9%) decrease in commissions on nondeposit investment products to $532,000, a $235,000 (6.5%) decrease in service charges on deposit accounts to $3,365,000, a $219,000 (70.4%) decrease in gain on sale of foreclosed assets, and a $192,000 (37.9%) increase in the negative effect of change in value of mortgage servicing rights to $698,000, that were partially offset by a $391,000 (13.0%) increase in ATM fees and interchange revenue to $3,393,000. The decrease in commissions on nondeposit investment products was primarily the result of relatively weak investment sales during the three months ended March 31, 2016 that was compounded by the commissions earned during the three months ended March 31, 2015 being unusually large. The decrease in service charges on deposit was primarily due to decreases in monthly service charges and nonsufficient fund fees, both of which were primarily due to decreases in numbers of accounts when compared to the year-ago quarter. Nonsufficient funds fees were also impacted by changes in customer behavior when compared to the year-ago quarter. The decrease in gain on sale of foreclosed assets was due to decreased foreclosed asset sales during the quarter, and the uniqueness of individual foreclosed asset sales when compared to the year-ago period. The decrease in change in value of mortgage servicing rights is primarily due to an increase in estimated prepayment speeds of serviced loans during the three months ended March 31, 2016 when compared to the three months ended March 31, 2015. An increase in prepayment speeds of serviced loans results in reduced expected servicing cash flows, and thus, a lower value of such servicing rights. The increase in ATM fees and interchange revenue was primarily due to the Company’s increased focus in this area, including the introduction of new services in this area during the quarter ended March 31, 2016.

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

	Three months ended
		March 31,
(dollars in thousands)		2016			2015		$	Change		% Change
Salaries	$	12,708		$	11,744		$	964		8.2	%
Commissions and incentives		1,739			1,596			143		9.0	%
Employee benefits		4,818			4,760			58		1.2	%
Total salaries and benefits expense		19,265			18,100			1,165		6.4	%
Occupancy		2,308			2,417			(109	)	(4.5	%)
Equipment		1,386			1,414			(28	)	(2.0	%)
Change in reserve for unfunded commitments		—			(130	)		130		(100.0	%)
Data processing and software		1,843			1,952			(109	)	(5.6	%)
Telecommunications		685			886			(201	)	(22.7	%)
ATM network charges		1,006			770			236		30.6	%
Professional fees		809			1,119			(310	)	(27.7	%)
Advertising and marketing		895			808			87		10.8	%
Postage		463			312			151		48.4	%
Courier service		271			248			23		9.3	%
Intangible amortization		299			289			10		3.5	%
Operational losses		164			124			40		32.3	%
Provision for foreclosed asset losses		(11	)		67			(78	)	(116.4	%)
Foreclosed asset expense		46			98			(52	)	(53.1	%)
Assessments		632			651			(19	)	(2.9	%)
Merger and acquisition expense		622			586			36		6.1	%
Miscellaneous other expense		3,068			2,571			497		19.3	%
Total other noninterest expense		14,486			14,182			304		2.1	%
Total noninterest expense	$	33,751		$	32,282		$	1,469		4.6	%
Average full time equivalent employees		965			966			(1	)	(0.1	%)
Merger & acquisition expense:
Base salaries	$	187			—
Data processing and software		—		$	108
Professional fees		180			120
Advertising and marketing		114			—
Miscellaneous other expense		141			358
Total merger expense	$	622		$	586

Noninterest expense increased $1,469,000 (4.6%) to $33,751,000 during the three months ended March 31, 2016 from $32,282,000 during the three months ended March 31, 2015. Included in noninterest expense for the three months ended March 31, 2016 was $622,000 of nonrecurring noninterest expense related to the Company’s acquisition of three bank branches from Bank of America on March 18, 2016. Included in noninterest expense for the three months ended March 31, 2015 was $586,000 of nonrecurring noninterest expense related to the Company’s merger with, and integration of, North Valley Bancorp that occurred on October 3, 2014.

Salary and benefit expenses increased $1,165,000 (6.4%) to $19,265,000 during the three months ended March 31, 2016 compared to the three months ended March 31, 2015. Base salaries, incentive compensation and benefits & other compensation expense increased $964,000 (8.2%), 143,000 (9.0%), and 58,000 (1.2%), respectively, to $12,708,000, $1,739,000 and $4,818,000, respectively, during the three months ended March 31, 2016. The increase in base salaries was primarily due to a $594,000 (4.9%) increase in salaries to $12,644,000, and a $530,000 increase in temporary help to $546,000, that were partially offset by a $115,000 (29.1%) decrease in overtime to $280,130. The increase in salaries was primarily due to annual salary increases. The increase in temporary help was due to the use of an outside call center service to augment the Company’s own call center during the enhancement of a customer facing product.

Other noninterest expense increased $304,000 (2.1%) to $14,486,000 during the three months ended March 31, 2016 compared to the three months ended March 31, 2015. The increase in other noninterest expense was primarily due to a $498,000 (19.4%) in miscellaneous other noninterest expense, a $236,000 (30.6%) increase in ATM network charges, a $151,000 (48.4%) increase in postage, and a $130,000 increase in provision for losses on unfunded commitments that were partially offset by a $310,000 (27.7%) decrease in professional fees, a $137,000 (3.6%) decrease in combined occupancy and equipment expenses, and a $201,000 (22.7%) decrease in telecommunications expense. The increase in miscellaneous other noninterest expense is primarily due to increased appraisal and credit report fees, debit card production expense, and donations. The increase in ATM network charges is due to increased customer usage of the Company’s ATM and interchange services. The $130,000 increase in provision for losses on unfunded commitments is due to no provision in the most recent quarter versus a $130,000 reversal of provision in the year-ago quarter. The decrease in professional fees is due mainly to reduced external audit and accounting fees as the three months ended March 31, 2015 had elevated expenses in this area from the North Valley Bancorp merger. The decreases in occupancy and equipment, and telecommunications expenses is due to the consolidation into other branches of eight branches during the three months ended March 31, 2015 related to the North Valley Bancorp merger, one branch consolidation during the three months ended June 30, 2015, and four branch consolidations during the three months ended September 30, 2015 that were partially offset by one branch opening during the three months ended September 30, 2015.

Richard Smith, President and CEO of the Company commented, “We are pleased and motivated by our results for the quarter. The first quarter of 2016 was a very busy quarter for the company. We completed the acquisition of three branches from Bank of America on the North coast of California, introduced a new mobile banking application to our customers, executed on project plans for additional applications to be released later this year, sold a significant number of non-performing loans resulting in a recovery and continued to add meaningful levels of loan and deposit growth.”

Smith added, “We remain focused in 2016 on the many projects and activities that we have planned for the year which are expected to strengthen our bank’s infrastructure and provide for continued growth and expansion. A key take away in the quarter was also the addition of new team members to the company. Our talented team of dedicated bankers continues to drive our success.”

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, 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
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Statement of Income Data
Interest income	$	42,794		$	42,490		$	41,332		$	39,867		$	37,725
Interest expense		1,392			1,349			1,339			1,346			1,382
Net interest income		41,402			41,141			39,993			38,521			36,343
Provision for (benefit from) loan losses		209			(908	)		(866	)		(633	)		197
Noninterest income:
Service charges and fees		7,305			7,935			7,694			8,848			7,344
Other income		2,485			3,510			3,948			3,232			2,836
Total noninterest income		9,790			11,445			11,642			12,080			10,180
Noninterest expense:
Base salaries net of deferred
loan origination costs		12,708			12,014			11,562			11,502			11,744
Incentive compensation expense		1,739			2,304			1,674			1,390			1,596
Employee benefits and other
compensation expense		4,818			4,212			4,297			4,350			4,760
Total salaries and benefits expense		19,265			18,530			17,533			17,242			18,100
Other noninterest expense		14,486			16,154			13,906			15,194			14,182
Total noninterest expense		33,751			34,684			31,439			32,436			32,282
Income before taxes		17,232			18,810			21,062			18,798			14,044
Net income	$	10,674		$	11,422		$	12,694		$	11,366		$	8,336
Share Data
Basic earnings per share	$	0.47		$	0.50		$	0.56		$	0.50		$	0.37
Diluted earnings per share	$	0.46		$	0.50		$	0.55		$	0.49		$	0.36
Book value per common share	$	20.34		$	19.85		$	19.48		$	18.95		$	18.68
Tangible book value per common share	$	17.18		$	16.81		$	16.42		$	15.88		$	15.59
Shares outstanding		22,785,173			22,775,173			22,764,295			22,749,523			22,740,503
Weighted average shares		22,782,865			22,769,793			22,757,453			22,744,926			22,727,038
Weighted average diluted shares		23,046,165			23,055,900			23,005,980			22,980,033			22,949,902
Credit Quality
Nonperforming originated loans	$	12,660		$	22,824		$	24,052		$	23,812		$	34,576
Total nonperforming loans		24,034			37,119			38,898			39,880			49,217
Foreclosed assets, net of allowance		4,471			5,369			5,285			5,393			5,892
Loans charged-off		1,289			380			687			514			1,235
Loans recovered	$	1,457		$	781		$	2,616		$	547		$	508
Selected Financial Ratios
Return on average total assets		1.01	%		1.11	%		1.28	%		1.17	%		0.86	%
Return on average equity		9.25	%		10.14	%		11.56	%		10.56	%		7.85	%
Average yield on loans		5.48	%		5.60	%		5.57	%		5.44	%		5.46	%
Average yield on interest-earning assets		4.47	%		4.53	%		4.60	%		4.50	%		4.25	%
Average rate on interest-bearing liabilities		0.22	%		0.22	%		0.23	%		0.23	%		0.23	%
Net interest margin (fully tax-equivalent)		4.33	%		4.39	%		4.46	%		4.35	%		4.10	%
Supplemental Loan Interest Income Data:
Discount accretion PCI - cash basis loans	$	269		$	302		$	445		$	404		$	172
Discount accretion PCI - other loans		(45	)		1,392			1,090			907			1,011
Discount accretion PNCI loans		868			573			1,590			822			1,348
All other loan interest income		33,646			32,571			30,689			29,886			28,371
Total loan interest income	$	34,738		$	34,838		$	33,814		$	32,019		$	31,165

TRICO BANCSHARES – CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands)

	Three months ended
	March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015			March 31, 2015
Balance Sheet Data
Cash and due from banks	$	388,878		$	303,461		$	209,298		$	169,503		$	281,228
Securities, available for sale		477,454			404,885			329,361			284,430			225,126
Securities, held to maturity		705,133			726,530			751,051			776,283			802,482
Restricted equity securities		16,956			16,956			16,956			16,956			16,956
Loans held for sale		2,240			1,873			5,152			4,630			5,413
Loans:
Commercial loans		197,695			194,913			199,330			195,791			177,540
Consumer loans		401,076			395,283			403,081			411,788			410,727
Real estate mortgage loans		1,813,933			1,811,832			1,757,082			1,686,567			1,646,863
Real estate construction loans		128,843			120,909			110,073			99,616			85,753
Total loans, gross		2,541,547			2,522,937			2,469,566			2,393,762			2,320,883
Allowance for loan losses		(36,388	)		(36,011	)		(36,518	)		(35,455	)		(36,055	)
Foreclosed assets		4,471			5,369			5,285			5,393			5,892
Premises and equipment		51,522			43,811			42,334			42,056			42,846
Cash value of life insurance		95,256			94,560			94,458			93,687			93,012
Goodwill		64,311			63,462			63,462			63,462			63,462
Other intangible assets		7,641			5,894			6,184			6,473			6,762
Mortgage servicing rights		7,140			7,618			7,467			7,814			7,057
Accrued interest receivable		11,075			10,786			10,212			10,064			9,794
Other assets		57,720			48,591			47,360			54,797			51,002
Total assets	$	4,394,956			4,220,722			4,021,628			3,893,855			3,895,860
Deposits:
Noninterest-bearing demand deposits		1,178,001			1,155,695			1,100,607			1,060,650			1,034,012
Interest-bearing demand deposits		884,638			853,961			817,034			780,647			795,471
Savings deposits		1,368,644			1,281,540			1,187,238			1,179,836			1,172,257
Time certificates		353,757			340,070			352,993			320,549			347,748
Total deposits		3,785,040			3,631,266			3,457,872			3,341,682			3,349,488
Accrued interest payable		751			774			795			797			852
Reserve for unfunded commitments		2,475			2,475			2,085			2,125			2,015
Other liabilities		68,064			65,293			53,681			55,003			53,256
Other borrowings		18,671			12,328			6,859			6,735			9,096
Junior subordinated debt		56,519			56,470			56,991			56,369			56,320
Total liabilities		3,931,520			3,768,606			3,578,283			3,462,711			3,471,027
Total shareholders’ equity		463,436			452,116			443,345			431,144			424,833
Accumulated other comprehensive gain (loss)		1,772			(1,778	)		(2,298	)		(4,726	)		(2,083	)
Average loans		2,537,574			2,489,406			2,427,670			2,355,864			2,283,622
Average interest-earning assets		3,876,786			3,777,144			3,616,912			3,563,925			3,557,103
Average total assets		4,212,388			4,115,369			3,953,292			3,894,196			3,892,476
Average deposits		3,616,618			3,543,423			3,390,229			3,347,874			3,350,370
Average total equity	$	461,520		$	450,413		$	439,360		$	430,601		$	424,701
Total risk based capital ratio		15.2	%		15.1	%		15.2	%		15.2	%		15.2	%
Tier 1 capital ratio		14.0	%		13.8	%		13.9	%		13.9	%		14.0	%
Tier 1 common equity ratio		12.4	%		12.2	%		12.3	%		12.2	%		12.1	%
Tier 1 leverage ratio		10.8	%		10.8	%		11.0	%		10.9	%		10.7	%
Tangible capital ratio		9.1	%		9.2	%		9.5	%		9.4	%		9.3	%