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

Exhibit 99.1

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

TRICO BANCSHARES ANNOUNCES QUARTERLY AND ANNUAL RESULTS

CHICO, Calif. – (January 30, 2017) – TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank, today announced earnings of $12,533,000, or $0.54 per diluted share, for the three months ended December 31, 2016. For the three months ended December 31, 2015 the Company reported earnings of $11,422,000, or $0.50 per diluted share. Diluted shares outstanding were 23,115,708 and 23,055,900 for the three months ended December 31, 2016 and 2015, respectively.

For the year ended December 31, 2016 the Company reported earnings of $44,811,000, or $1.94 per diluted share.

For the year ended December 31, 2015 the Company reported earnings of $43,818,000, or $1.91 per diluted share.

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 December 31,
(dollars and shares in thousands)	2016			2015			$ Change			% Change
Net Interest Income	$	43,155		$	41,141		$	2,014			4.9	%
Reversal of provision for loan losses		1,433			908			525
Noninterest income		12,462			11,445			1,017			8.9	%
Noninterest expense		(36,563	)		(34,684	)		(1,879	)		5.4	%
Provision for income taxes		(7,954	)		(7,388	)		(566	)		7.7	%
Net income	$	12,533		$	11,422		$	1,111			9.7	%
Average common shares		22,846			22,770			76			0.3	%
Average diluted common shares		23,116			23,056			60			0.3	%

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

Ending balances	As of December 31,
($’s in thousands)	2016		2015		$ Change		% Change
Total assets	$	4,517,968	$	4,220,722	$	297,246		7.0	%
Total loans		2,759,593		2,522,937		236,656		9.4	%
Total investments		1,169,725		1,148,371		21,354		1.9	%
Total deposits	$	3,895,560	$	3,631,266	$	264,294		7.3	%

Qtrly Avg balances	As of December 31,
($’s in thousands)	2016		2015		$ Change		% Change
Total assets	$	4,445,310	$	4,115,369	$	329,941		8.0	%
Total loans		2,695,743		2,489,406		206,337		8.3	%
Total investments		1,174,705		1,112,992		61,713		5.5	%
Total deposits	$	3,820,773	$	3,543,423	$	277,350		7.8	%

Included in the period ending balances and quarterly average balances is the addition of deposits from the acquisition of three bank branches from Bank of America, that totaled $161 million on the date of acquisition, March 18, 2016. These three acquired 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, loans with balances of $289,000, premises and equipment valued at $1,590,000, other assets valued at $141,000, and recorded a core deposit intangible asset of $2,046,000 and goodwill of $849,000.

Also included in the Company’s results of operations for the three months ended December 31, 2016 is the impact of the sale on December 28, 2016, of twenty performing loans with recorded book value of $1,975,000, and 49 nonperforming loans with recorded book value, includingpre-sale write downs and purchase discounts, of approximately $2,709,000. The loans sold on December 28, 2016 had contractual amounts outstanding of $7,100,000. Net sale proceeds of $5,851,000 resulted in the recovery of loan balances previously charged off of $692,000, additional loan charge offs of $316,000, interest income of $586,000 from the recovery of interest payments previously applied to principal balances, and gain on sale of $205,000. In addition, associated with the loans sold on December 28, 2016 were specific allowances for loan loss of $503,000 on September 30, 2016 that were no longer necessary at December 31, 2016; and had these loans not been sold, it is expected that the allowance for loan losses would have been approximately $503,000 higher than reported at December 31, 2016, and the reversal of provision for loan losses for the three months ended December 31, 2016 would have been approximately $503,000 less than reported.

Also included in the Company’s results of operations for the three and twelve months ended December 31, 2016 is the impact of the sale on August 22, 2016, of two performing loans with recorded book value of $166,000, and 48 nonperforming loans with recorded book value, includingpre-sale write downs and purchase discounts, of approximately $2,757,000. The loans sold on August 22, 2016 had contractual amounts outstanding of $6,558,000. Net sale proceeds of $4,980,000 resulted in the recovery of loan balances previously charged off of $1,727,000, additional loan charge offs of $159,000, and interest income of $488,000 from the recovery of interest payments previously applied to principal balances.

Also included in the Company’s results of operations for the three and twelve months ended December 31, 2016 is the impact of the purchase, on May 19, 2016 of seven performing multi-family commercial real estate loans valued at $22,503,000, and the sale, on March 31, 2016, of twenty-seven nonperforming loans, nine substandard performing loans, and three purchased credit impaired loans with total recorded book value of approximately $24,810,000.

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. Included in the Company’s net interest income is interest income from municipal bonds that is almost entirely exempt from Federal income tax. These municipal bonds are classified as investments – nontaxable, and the Company may present the interest income from these bonds on a fully tax equivalent (FTE) basis. Following is a summary of the components of net interest income for the periods indicated (dollars in thousands):

	Three months ended December 31,
(dollars and shares in thousands)	2016			2015			$ Change			% Change
Interest income	$	44,615		$	42,490		$	2,125			5.0	%
Interest expense		(1,460	)		(1,349	)		(111	)		8.2	%
FTE adjustment		619			315			304			96.5	%
Net interest income (FTE)	$	43,774		$	41,456		$	2,318			5.6	%
Net interest margin (FTE)		4.28	%		4.39	%
Purchased loan discount accretion:
Amount	$	1,778		$	2,267
Effect on average loan yield		0.27	%		0.37	%
Effect on net interest margin (FTE)		0.17	%		0.24	%
Interest income recovered via loan sales:
Amount	$	586		$	0
Effect on average loan yield		0.09	%		0.00	%
Effect on net interest margin (FTE)		0.06	%		0.00	%

The following table shows the components of net interest income and net interest margin on a fullytax-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
	December 31, 2016								September 30, 2016								December 31, 2015
	Average Balance		Income/ Expense			Yield/ Rate			Average Balance		Income/ Expense			Yield/ Rate			Average Balance		Income/ Expense			Yield/ Rate
Assets
Earning assets
Loans	$	2,695,743	$	36,241			5.38	%	$	2,669,954	$	35,769			5.36	%	$	2,489,406	$	34,838			5.60	%
Investments—taxable		1,042,763		7,026			2.70	%		1,073,030		6,687			2.49	%		1,044,063		6,983			2.68	%
Investments—nontaxable		131,942		1,650			5.00	%		126,910		1,565			4.93	%		68,929		841			4.88	%
Cash at Federal Reserve and other banks		223,564		317			0.57	%		185,552		275			0.59	%		174,746		143			0.33	%
Total earning assets		4,094,012		45,234			4.42	%		4,055,446		44,296			4.37	%		3,777,144		42,805			4.53	%
Other assets, net		351,298								351,875								338,225
Total assets	$	4,445,310							$	4,407,322							$	4,115,369
Liabilities and shareholders’ equity
Interest-bearing
Demand deposits	$	887,671		94			0.04	%	$	888,377		111			0.05	%	$	830,172		118			0.06	%
Savings deposits		1,374,059		439			0.13	%		1,357,359		426			0.13	%		1,231,687		388			0.13	%
Time deposits		339,766		339			0.40	%		340,709		338			0.40	%		347,742		337			0.39	%
Other borrowings		19,036		2			0.04	%		18,951		2			0.05	%		10,189		1			0.04	%
Trust preferred securities		56,615		586			4.14	%		56,584		562			3.97	%		56,345		505			3.59	%
Total interest-bearing liabilities		2,677,147		1,460			0.22	%		2,661,981		1,439			0.22	%		2,476,135		1,349			0.22	%
Noninterest-bearing deposits		1,219,276								1,198,302								1,133,822
Other liabilities		69,894								66,464								54,999
Shareholders’ equity		478,993								480,575								450,413
Total liabilities and shareholders’ equity	$	4,445,310							$	4,407,322							$	4,115,369
Net interest rate spread							4.20	%							4.15	%							4.31	%
Net interest income/net interest margin (FTE)				43,774			4.28	%				42,857			4.23	%				41,456			4.39	%
FTE adjustment			($	619	)							(587	)							(315	)
Net interest income (not FTE)			$	43,155							$	42,270							$	41,141

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. A loan may also be purchased at a premium to face value, in which case, the premium is amortized into (subtracted from) interest income over the remaining life of the loan. Generally, as time goes on, the effects of loan discount accretion and loan premium amortization decrease as the purchased loans mature or pay off early. Upon the early pay off of a loan, any remaining (unaccreted) discount or (unamortized) premium is immediately taken into interest income; and as loan payoffs may vary significantly from quarter to quarter, so may the impact of discount accretion and premium amortization on interest income. 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.

Net interest income (FTE) during the three months ended December 31, 2016 increased $2,318,000 (5.6%) from the same period in 2015 to $43,774,000. The increase in net interest income (FTE) was primarily due to a $206,337,000 (8.3%) increase in the average balance of loans to $2,695,743,000, and a $63,013,000 (91.4%) increase in the average balance of investments—nontaxable to $131,942,000 that were partially offset by a 22 basis point decrease in the average yield on loans from 5.60% during the three months ended December 31, 2015 to 5.38% during the three months ended December 31, 2016.    The decrease in average loan yields is primarily due to declines in market

yields on new and renewed loans compared to yields on repricing, maturing, and paid off loans, and despite 25 basis point increases in the Prime lending rate in each of December 2015 and December 2016.    The increases in average loan and investments—nontaxable balances added $2,889,000 and $769,000, respectively, to net interest income (FTE) while the decrease in average loan yield reduced net interest income (FTE) by $1,486,000 compared to theyear-ago quarter. Included in interest income from loans during the three months ended December 31, 2016 was $1,778,000 of discount accretion from purchased loans compared to $2,267,000 of discount accretion from purchased loans during the three months ended December 31, 2015. Included in interest income from loans during the three months ended December 31, 2016 was $586,000 of interest income that was previously applied to the principal balance of loans in nonaccrual status that were sold during the three months ended December 31, 2016. For more information related to loan interest income, including loan purchase discount accretion, see theSupplemental Loan Interest Income Data in the tables at the end of this announcement.

The Company recorded a reversal of provision for loan losses of $1,433,000 during the three months ended December 31, 2016 compared to a reversal of provision for loan losses of $908,000 during the three months ended December 31, 2015. The $1,433,000 reversal of provision for loan losses during the three months ended December 31, 2016 was primarily due to net loan recoveries of $376,000 associated with the sale of loans on December 28, 2016, additional net loan recoveries of $76,000 during the three months ended December 31, 2016, net credit quality upgrades, payoffs, and sale of substandard performing loans, and continued low historical loan loss experience, that were partially offset by the effect of a $47,367,000 (1.8%) increase in loan balances during the three months ended December 31, 2016.

During the three months ended December 31, 2016 nonperforming loans decreased $824,000 (3.9%) to $20,128,000, or 0.73% of loans outstanding as of December 31, 2016, and represented a decrease from 0.77% of loans outstanding at September 30, 2016, and a decrease from 1.47% of loans outstanding as of December 31, 2015. The decrease in nonperforming loans during the three months ended December 31, 2016 was due primarily to the sale of $2,709,000 of nonperforming loans on December 28, 2016 that was partially offset by a net increase of $1,885,000 in other nonperforming loans.

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

	Three months ended December 31,
(dollars in thousands)	2016			2015			$ Change			% Change
Service charges on deposit accounts	$	3,816		$	3,397		$	419			12.3	%
ATM fees and interchange		4,723			3,635			1,088			29.9	%
Other service fees		752			712			40			5.6	%
Mortgage banking service fees		495			581			(86	)		(14.8	%)
Change in value of mortgage servicing rights		14			(131	)		145			(110.7	%)
Total service charges and fees		9,800			8,194			1,606			19.6	%
Gain on sale of loans		1,392			883			509			57.6	%
Commission on NDIP		439			788			(349	)		(44.3	%)
Increase in cash value of life insurance		631			665			(34	)		(5.1	%)
Change in indemnification asset		(219	)		(59	)		(160	)		271.2	%
Gain on sale of foreclosed assets		44			209			(165	)		(78.9	%)
Other noninterest income		375			765			(390	)		(51.0	%)
Total other noninterest income		2,662			3,251			(589	)		(18.1	%)
Total noninterest income	$	12,462		$	11,445		$	1,017			8.9	%

Noninterest income increased $1,017,000 (8.9%) to $12,462,000 during the three months ended December 31, 2016 compared to the three months ended December 31, 2015. The increase in noninterest income was primarily due to a $1,088,000 increase in ATM fees and interchange income, a $509,000 increase in gain on sale of loans, and a $419,000 increase in service charges on deposit accounts, that were partially offset by a $390,000 decrease in other noninterest income, and a $349,000 decrease in commissions on nondeposit investment products.

The $1,088,000 increase in ATM fees and interchange revenue was due primarily 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 $509,000 increase in gain on sale of loans was due primarily to increased gain on sale of loans originated for sale, and a $205,000 gain on sale of other loans sold on December 28, 2016. The increase in gain on sale of loans originated for sale was due primarily to increased market refinance activity and focus by the Company in this area during the three months ended December 31, 2016 compared to theyear-ago period. The $419,000 increase in service charges on deposit accounts was due primarily to increases in certain deposit account fees that were instituted by the Company during the three months ended December 31, 2016, and the effect of service charges on the deposit accounts acquired through the branch purchase on March 18, 2016. The $390,000 decrease in other noninterest income was due primarily to $155,000 of life insurance proceeds in excess of cash value, and a $4,000 loss on disposal of fixed assets recorded during the three months ended December 31, 2015 compared to no life insurance proceeds in excess of cash value, and a $95,000 loss on disposal of fixed assets recorded during the three months ended December 31, 2016.

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

	Three months ended December 31,
(dollars in thousands)	2016			2015		$ Change			% Change
Base salaries, overtime and temporary help, net of deferred loan origination costs	$	14,074		$	12,014	$	2,060			17.1	%
Commissions and incentives		1,864			2,304		(440	)		(19.1	%)
Employee benefits		4,616			4,212		404			9.6	%
Total salaries and benefits expense		20,554			18,530		2,024			10.9	%
Occupancy		2,635			2,569		66			2.6	%
Equipment		1,760			1,639		121			7.4	%
Change in reserve for unfunded commitments		(189	)		390		(579	)		(148.5	%)
Data processing and software		2,580			2,015		565			28.0	%
Telecommunications		664			678		(14	)		(2.1	%)
ATM network charges		1,076			1,097		(21	)		(1.9	%)
Professional fees		2,226			1,392		834			59.9	%
Advertising and marketing		808			1,256		(448	)		(35.7	%)
Postage		417			340		77			22.6	%
Courier service		182			350		(168	)		(48.0	%)
Intangible amortization		360			290		70			24.1	%
Operational losses		558			263		295			112.2	%
Provision for foreclosed asset losses		100			155		(55	)		(35.5	%)
Foreclosed asset expense		69			185		(116	)		(62.7	%)
Assessments		241			585		(344	)		(58.8	%)
Miscellaneous other expense		2,522			2,950		(428	)		(14.5	%)
Total other noninterest expense		16,009			16,154		(145	)		(0.9	%)
Total noninterest expense	$	36,563		$	34,684	$	1,879			5.4	%
Average full time equivalent employees		1,008			952		56			5.9	%

Salary and benefit expenses increased $2,024,000 (10.9%) to $20,554,000 during the three months ended December 31, 2016 compared to $18,530,000 during the three months ended December 31, 2015. Base salaries, overtime and temporary help, net of deferred loan origination costs increased $2,060,000 (17.1%) to $14,074,000. Base salaries, net of deferred loan origination costs increased $1,773,000 (15.2%) to $13,452,000 primarily due to annual merit increases, and an increase in average full-time equivalent employees of 56 (5.9%) to 1,008 for the three months ended December 31, 2016. Overtime expense increased $33,000 to $345,000 during the three months ended December 31, 2016. Temporary help expense increased $255,000 to $278,000 during the three months ended December 31, 2016.

Commissions and incentive compensation decreased $440,000 (19.1%) to $1,864,000 during the three months ended December 31, 2016. All categories of incentive compensation expense were lower than theyear-ago quarter except commission expense related to the sale of consumer and small business banking products and services.

Benefits & other compensation expense increased $404,000 (9.6%) to $4,616,000 during the three months ended December 31, 2016 primarily due to the increases in average full-time equivalent employees and salaries expense, and their effects on group insurance and employer payroll tax expenses.    

Other noninterest expense decreased $145,000 (0.9%) to $16,009,000 during the three months ended December 31, 2016 compared to the three months ended December 31, 2015. The $145,000 decrease in other noninterest expense was due primarily to decreases in change in reserve for unfunded commitments, advertising and marketing, miscellaneous expense, and assessments of $579,000, $448,000, $428,000, and $344,000, respectively. These decreases from theyear-ago period were partially offset by increases in professional fees, data processing and software, and operational losses of $834,000, $565,000, and $295,000, respectively.

The $579,000 decrease in change in reserve for unfunded commitments was due primarily to reduction in construction and other loan commitments during the three months ended December 31, 2016 compared to an increase in such commitments during the year ago period. The $448,000 decrease in advertising and marketing expense was due to less activity in this area compared to theyear-ago period. The $428,000 decrease in miscellaneous other noninterest expense was due primarily to small decreases in numerous other types of expenses such as travel and entertainment. The $344,000 decrease in assessments was due to a decrease in FDIC deposit insurance rates during the three months ended December 31, 2016.

The $834,000 increase in professional fees was due to increased consulting fees that were partially offset by decreases in legal and accounting fees. The increase in consulting fees was due primarily to consulting fees related to the Company’s system conversion that was substantially completed during the three months ended December 31, 2016. The $565,000 increase in data processing and software expense was due primarily to increased use of outsourced data processing services. The $295,000 increase in operational losses was primarily due to an increase in losses from fraudulent ATM and point of sale transactions.

The changes in noninterest income and noninterest expense noted above also include the effects from the operation of three branches, including $161,231,000 of deposits, acquired from Bank of America on March 18, 2016.

Richard Smith, President and CEO of the Company commented, “2016 was another busy and successful year for the Company. We are pleased with our quarterly and annual results for the year. Loan growth continues at a strong pace and our acquisition of 3 branches from Bank of America in the second quarter provided added deposits and new loan growth opportunities for the Company. Our credit quality remains very strong. The Bank also completed many significant technology projects throughout the year. These technology solutions provide us with the necessary infrastructure for future growth and expansion. We will continue to look for new opportunities to grow through both internal opportunities and strategic acquisitions when appropriate.”

Smith added, “Key to our success is our talented and diligent workforce. During the 4^th quarter, we added two new members to our management team. John Fleshood, our new EVP—Chief Operating Officer and Mark Davis, our new SVP of Deposit Operations bring significant banking experience to our Company. Our management team remains motivated and enthusiastic going into 2017.”

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, competitive effects, fee and other noninterest income earned, the outcome of litigation, 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 Form10-K for the year ended December 31, 2015. 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 andin-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 convenientaround-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
	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Statement of Income Data
Interest income	$	44,615		$	43,709		$	42,590		$	42,794		$	42,490
Interest expense		1,460			1,439			1,430			1,392			1,349
Net interest income		43,155			42,270			41,160			41,402			41,141
(Benefit from reversal of) provision for loan losses		(1,433	)		(3,973	)		(773	)		209			(908	)
Noninterest income:
Service charges and fees		9,800			8,022			8,099			7,305			8,194
Other income		2,662			3,044			3,146			2,485			3,251
Total noninterest income		12,462			11,066			11,245			9,790			11,445
Noninterest expense:
Base salaries net of deferred loan origination costs		14,074			13,419			12,968			12,708			12,014
Incentive compensation expense		1,864			2,798			2,471			1,739			2,304
Employee benefits and other compensation expense		4,616			4,644			4,606			4,818			4,212
Total salaries and benefits expense		20,554			20,861			20,045			19,265			18,530
Other noninterest expense		16,009			16,555			18,222			14,486			16,154
Total noninterest expense		36,563			37,416			38,267			33,751			34,684
Income before taxes		20,487			19,893			14,911			17,232			18,810
Net income	$	12,533		$	12,199		$	9,405		$	10,674		$	11,422
Share Data
Basic earnings per share	$	0.55		$	0.53		$	0.41		$	0.47		$	0.50
Diluted earnings per share	$	0.54		$	0.53		$	0.41		$	0.46		$	0.50
Book value per common share	$	20.87		$	21.11		$	20.76		$	20.34		$	19.85
Tangible book value per common share	$	17.77		$	17.99		$	17.63		$	17.18		$	16.81
Shares outstanding		22,867,802			22,827,277			22,822,325			22,785,173			22,775,173
Weighted average shares		22,845,623			22,824,868			22,802,653			22,782,865			22,769,793
Weighted average diluted shares		23,115,708			23,098,534			23,070,151			23,046,165			23,055,900
Credit Quality
Nonperforming originated loans	$	12,894		$	13,083		$	10,022		$	12,660		$	22,824
Total nonperforming loans		20,128			20,952			19,977			24,034			37,119
Foreclosed assets, net of allowance		3,986			4,124			3,842			4,471			5,369
Loanscharged-off		635			664			641			1,289			380
Loans recovered	$	1,087		$	2,612		$	536		$	1,457		$	781
Selected Financial Ratios
Return on average total assets		1.13	%		1.11	%		0.86	%		1.01	%		1.11	%
Return on average equity		10.47	%		10.15	%		7.98	%		9.25	%		10.14	%
Average yield on loans		5.38	%		5.36	%		5.32	%		5.48	%		5.60	%
Average yield on interest-earning assets		4.42	%		4.37	%		4.28	%		4.47	%		4.53	%
Average rate on interest-bearing liabilities		0.22	%		0.22	%		0.21	%		0.22	%		0.22	%
Net interest margin (fullytax-equivalent)		4.28	%		4.23	%		4.13	%		4.33	%		4.39	%
Supplemental Loan Interest Income Data:
Discount accretion PCI—cash basis loans	$	483		$	777		$	426		$	269		$	302
Discount accretion PCI—other loans		658			569			415			(45	)		1,392
Discount accretion PNCI loans		637			883			1,459			868			573
All other loan interest income	$	34,463			33,540			32,038			33,646			32,571
Total loan interest income	$	36,241		$	35,769		$	34,338		$	34,738		$	34,838

TRICO BANCSHARES—CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands)

	Three months ended
Balance Sheet Data	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
Cash and due from banks	$	305,612		$	315,088		$	216,786		$	388,878		$	303,461
Securities, available for sale		550,233			510,209			529,017			477,454			404,885
Securities, held to maturity		602,536			641,149			674,412			705,133			726,530
Restricted equity securities		16,956			16,956			16,956			16,956			16,956
Loans held for sale		2,998			7,777			2,904			2,240			1,873
Loans:
Commercial loans		218,002			217,110			209,840			197,695			194,913
Consumer loans		375,629			377,016			381,114			401,076			395,283
Real estate mortgage loans		2,043,543			1,998,913			1,913,024			1,813,933			1,811,832
Real estate construction loans		122,419			119,187			149,652			128,843			120,909
Total loans, gross		2,759,593			2,712,226			2,653,630			2,541,547			2,522,937
Allowance for loan losses		(32,503	)		(33,484	)		(35,509	)		(36,388	)		(36,011	)
Foreclosed assets		3,986			4,124			3,842			4,471			5,369
Premises and equipment		48,406			49,448			51,728			51,522			43,811
Cash value of life insurance		95,912			95,281			94,572			95,256			94,560
Goodwill		64,311			64,311			64,311			64,311			63,462
Other intangible assets		6,563			6,923			7,282			7,641			5,894
Mortgage servicing rights		6,595			6,208			6,720			7,140			7,618
Accrued interest receivable		12,027			10,819			11,602			11,075			10,786
Other assets		74,743			60,096			54,239			57,720			48,591
Total assets	$	4,517,968			4,467,131			4,352,492			4,394,956			4,220,722
Deposits:
Noninterest-bearing demand deposits		1,275,745			1,221,503			1,181,702			1,178,001			1,155,695
Interest-bearing demand deposits		887,625			910,638			867,638			884,638			853,961
Savings deposits		1,397,036			1,366,892			1,346,269			1,368,644			1,281,540
Time certificates		335,154			336,979			345,787			353,757			340,070
Total deposits		3,895,560			3,836,012			3,741,396			3,785,040			3,631,266
Accrued interest payable		818			774			727			751			774
Reserve for unfunded commitments		2,719			2,908			2,883			2,475			2,475
Other liabilities		67,364			69,695			57,587			68,064			65,293
Other borrowings		17,493			19,235			19,464			18,671			12,328
Junior subordinated debt		56,667			56,617			56,567			56,519			56,470
Total liabilities		4,040,621			3,985,241			3,878,624			3,931,520			3,768,606
Total shareholders’ equity		477,347			481,890			473,868			463,436			452,116
Accumulated other comprehensive gain (loss)		(7,913	)		4,953			6,073			1,772			(1,778	)
Average loans		2,695,743			2,669,954			2,579,774			2,537,574			2,489,406
Average interest-earning assets		4,094,011			4,055,446			4,038,728			3,876,786			3,777,144
Average total assets		4,445,310			4,407,322			4,387,950			4,212,388			4,115,369
Average deposits		3,820,773			3,784,748			3,778,436			3,616,618			3,543,423
Average total equity	$	478,993		$	480,575		$	471,362		$	461,520		$	450,413
Total risk based capital ratio		14.6	%		14.7	%		14.7	%		15.1	%		15.1	%
Tier 1 capital ratio		13.6	%		13.6	%		13.6	%		13.9	%		13.8	%
Tier 1 common equity ratio		12.0	%		12.0	%		12.0	%		12.3	%		12.2	%
Tier 1 leverage ratio		10.6	%		10.6	%		10.4	%		10.7	%		10.8	%
Tangible capital ratio		9.1	%		9.3	%		9.4	%		9.1	%		9.2	%

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