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. – (July 27, 2017) – TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank, today announced earnings of $13,589,000, or $0.58 per diluted share, for the three months ended June 30, 2017. For the three months ended June 30, 2016 the Company reported earnings of $9,405,000, or $0.41 per diluted share. Diluted shares outstanding were 23,240,112 and 23,070,151 for the three months ended June 30, 2017 and 2016, respectively.

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 June 30,
(dollars and shares in thousands)	2017			2016			$ Change			% Change
Net Interest Income	$	43,434		$	41,160		$	2,274			5.5	%
Reversal of (provision for) loan losses		796			773			23
Noninterest income		12,910			11,245			1,665			14.8	%
Noninterest expense		(35,904	)		(38,267	)		2,363			(6.2	%)
Provision for income taxes		(7,647	)		(5,506	)		(2,141	)		38.9	%
Net income	$	13,589		$	9,405		$	4,184			44.5	%
Average common shares		22,900			22,803			97			0.4	%
Average diluted common shares		23,240			23,070			170			0.7	%

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

Ending balances	As of June 30,
($ ’s in thousands)	2017		2016		$ Change		% Change
Total assets	$	4,519,935	$	4,352,492	$	167,443		3.8	%
Total loans		2,826,393		2,653,630		172,763		6.5	%
Total investments		1,249,043		1,220,385		28,658		2.3	%
Total deposits	$	3,878,422	$	3,741,396	$	137,026		3.7	%
Qtrly avg balances	As of June 30,
($ ’s in thousands)	2017		2016		$ Change		% Change
Total assets	$	4,492,389	$	4,387,950	$	104,439		2.4	%
Total loans		2,783,686		2,579,774		203,912		7.9	%
Total investments		1,213,959		1,211,556		2,403		0.2	%
Total deposits	$	3,851,519	$	3,778,436	$	73,083		1.9	%

Included in the Company’s results of operations for the three months ended June 30, 2017 is noninterest income of $712,000 related to the termination on May 9, 2017 of the loss sharing agreements between the Company and the FDIC that were originally agreed to in conjunction with the Company’s acquisition of certain assets and liabilities of Granite Community Bank from the FDIC in May 2010. As part of the termination agreement, the Company paid the FDIC $184,000, and recorded $712,000 of noninterest income representing the difference between the Company’s recorded loss share liability on May 9, 2017 and the payment to the FDIC.

Included in the results of the Company for the three months ended June 30, 2016 was $162,000 of nonrecurring noninterest expense related to the Company’s acquisition of three bank branches from Bank of America on March 18, 2016.

In addition to the income recorded as a result of the termination of the loss sharing agreements, and the nonrecurring merger related expense noted above, there were other expense and revenue items during the three months ended June 30, 2017 and 2016 that may be considered nonrecurring, and these items are described below in various sections of this announcement.

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.

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 announcement.

Following is a summary of the components of net interest income for the periods indicated (dollars in thousands):

	Three months ended
	June 30,
(dollars and shares in thousands)	2017			2016			$ Change			% Change
Interest income	$	45,044		$	42,590		$	2,454			5.8	%
Interest expense		(1,610	)		(1,430	)		(180	)		12.6	%
FTE adjustment		625			585			40			6.8	%
Net interest income (FTE)	$	44,059		$	41,745		$	2,314			5.5	%
Net interest margin (FTE)		4.26	%		4.13	%
Purchased loan discount accretion:
Amount (included in interest income)	$	2,170		$	2,300
Effect on average loan yield		0.31	%		0.36	%
Effect on net interest margin (FTE)		0.21	%		0.23	%

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 June 30, 2017								Three Months Ended March 31, 2017								Three Months Ended June 30, 2016
	Average Balance		Income/ Expense			Yield/ Rate			Average Balance		Income/ Expense			Yield/ Rate			Average Balance		Income/ Expense			Yield/ Rate
Assets
Earning assets
Loans	$	2,783,686	$	36,418			5.23	%	$	2,758,544	$	34,914			5.06	%	$	2,579,774	$	34,338			5.32	%
Investments—taxable		1,077,703		7,231			2.68	%		1,038,229		7,094			2.73	%		1,085,230		6,945			2.56	%
Investments—nontaxable		136,256		1,667			4.89	%		136,290		1,666			4.89	%		126,326		1,560			4.94	%
Cash at Federal Reserve and other banks		137,376		353			1.03	%		197,406		435			0.88	%		247,398		332			0.54	%
Total earning assets		4,135,021		45,669			4.42	%		4,130,469		44,109			4.27	%		4,038,728		43,175			4.28	%
Other assets, net		357,368								363,188								349,222
Total assets	$	4,492,389							$	4,493,657							$	4,387,950
Liabilities and shareholders’ equity
Interest-bearing
Demand deposits	$	936,482		201			0.09	%	$	907,104		127			0.06	%	$	886,417		120			0.05	%
Savings deposits		1,353,132		410			0.12	%		1,376,048		424			0.12	%		1,354,846		423			0.12	%
Time deposits		321,515		363			0.45	%		331,789		343			0.41	%		350,215		338			0.39	%
Other borrowings		20,011		13			0.26	%		17,483		2			0.05	%		19,152		3			0.06	%
Trust preferred securities		56,736		623			4.39	%		56,690		595			4.20	%		56,544		546			3.86	%
Total interest-bearing liabilities		2,687,876		1,610			0.24	%		2,689,114		1,491			0.22	%		2,667,174		1,430			0.21	%
Noninterest-bearing deposits		1,240,390								1,247,852								1,186,958
Other liabilities		66,898								71,880								62,456
Shareholders’ equity		497,225								484,811								471,362
Total liabilities and shareholders’ equity	$	4,492,389							$	4,493,657							$	4,387,950
Net interest rate spread							4.18	%							4.05	%							4.07	%
Net interest income/net interest margin (FTE)				44,059			4.26	%				42,618			4.13	%				41,745			4.13	%
FTE adjustment				(625	)							(625	)							(585	)
Net interest income (not FTE)			$	43,434							$	41,993							$	41,160
Purchase loan discount accretion effect:
Amount (included in interest income)			$	2,170							$	1,541							$	2,300
Effect on avg loan yield				0.31	%							0.22	%							0.36	%
Effect on net interest margin				0.21	%							0.15	%							0.23	%
Loan sale effect:
Amount (included in interest income)				—								—								—
Effect on avg loan yield				0.00	%							0.00	%							0.00	%
Effect on net interest margin				0.00	%							0.00	%							0.00	%

Net interest income (FTE) during the three months ended June 30, 2017 increased $2,314,000 (5.5%) from the same period in 2016 to $44,059,000. The increase in net interest income (FTE) was due primarily to an increase in the average balances of loans, an increase in yield on investments – taxable, and an increase in yield on Federal funds sold that were partially offset by a decrease in yield on loans compared to the three months ended June 30, 2016.

During the three months ended June 30, 2017, loan interest income increased $2,080,000 (6.1%) to $36,418,000. The increase in loan interest income was due to a $203,912,000 (7.9%) increase in the average balance of loans that was partially offset by a 9 basis point decrease in the average yield on loans to 5.23% compared to 5.32% during the three months ended June 30, 2016. Included in loan interest income for the quarter ended June 30, 2017 was $2,170,000 of purchased loan discount accretion. Included in loan interest income for the quarter ended June 30, 2016 was $2,300,000 of purchased loan discount accretion. During the three months ended June 30, 2017, investment interest income (FTE) increased $393,000 (4.6%) from the year-ago quarter to $8,898,000. The increase

in investment interest income was due to a $2,403,000 (0.2%) increase in the average balance of investments and a 12 basis point increase in the average investment yield to 2.93% compared to 2.81% in the year-ago quarter. The increase in loan balances noted above was funded primarily by a $73,083,000 (1.9%) increase in the average balance of total deposits and a $110,022,000 (44.5%) decrease in the average balance of interest earning cash at banks during the three months ended June 30, 2017 compared to the three months ended June 30, 2016. Despite the 44.5% decrease in the average balance of interest earning cash at banks, interest income from cash at banks increased $21,000 (6.3%) to $353,000 due to a 49 basis point increase in the average yield on cash at banks to 1.03% during the three months ended June 30, 2017 compared to 0.54% during the three months ended June 30, 2016. While the average balance of total deposits grew $73,083,000 (1.9%) from the three months ended June 30, 2016 to the three months ended June 30, 2017, the average balance of interest bearing deposits grew $19,651,000 (0.8%), and the average rate paid on those interest bearing deposits increased 1 basis point to 0.15%. The average rate paid on junior subordinated debt increased 53 basis points to 4.39% during the three months ended June 30, 2017 compared to 3.86% during the three months ended June 30, 2016. The changes in the average balances of interest bearing assets and liabilities, and their respective yields and rates, from the three months ended June 30, 2016 to the three months ended June 30, 2017 is indicative of the moderate to strong loan demand and loan origination capabilities of the Company from June 30, 2016 to June 30, 2017, and the increases in short-term interest rates during this time frame that did not result in significant increases in deposit rates or long-term fixed-rate loan rates. 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 table below that sets forth a summary of the changes in interest income and interest expense from changes in average asset and liability balances (volume) and changes in average interest yields and rates for each category of interest earning asset and interest paying liability for the periods indicated:

	Three months ended June 30, 2017 compared with three months ended June 30, 2016
	Volume			Yield/Rate			Total
Increase (decrease) in interest income:
Loans	$	2,712		$	(632	)	$	2,080
Investments—taxable		(48	)		334			286
Investments—nontaxable		123			(16	)		107
Federal funds sold		(149	)		170			21
Total		2,638			(144	)		2,494
Increase (decrease) in interest expense:
Demand deposits (interest-bearing)		6			75			81
Savings deposits		(1	)		(12	)		(13	)
Time deposits		(28	)		53			25
Other borrowings		—			10			10
Junior subordinated debt		2			75			77
Total		(21	)		201			180
Increase (decrease) in net interest income	$	2,659		$	(345	)	$	2,314

The Company recorded a reversal of provision for loan losses of $796,000 during the three months ended June 30, 2017 compared to a reversal of provision for loan losses of $773,000 during the three months ended June 30, 2016. The $796,000 reversal of provision for loan losses during the three months ended June 30, 2017 was primarily due to a $2,082,000 reduction in nonperforming loans, continued low historical loan loss experience, and stable to improving economic environmental factors. Nonperforming loans were $17,429,000, or 0.62% of loans outstanding as of June 30, 2017, and represented a decrease from 0.73% of loans outstanding at December 31, 2016, and a decrease from 0.75% of loans outstanding as of June 30, 2016. Net loan charge-offs during the three months ended June 30, 2017 were $2,078,000, and included $1,645,000 of charge-offs related to purchased credit impaired (PCI-other) loans for which an allowance was previously provided. Excluding these PCI loan charge-offs, charge-offs for the three months ended June 30, 2017 would have been $867,000, and charge-offs, net of recoveries, would have been $433,000.

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

	Three months ended June 30,
(dollars in thousands)	2017			2016			$ Change			% Change
Service charges on deposit accounts		4,323		$	3,543		$	780			22.0	%
ATM fees and interchange		4,248			3,892			356			9.1	%
Other service fees		839			849			(10	)		(1.2	%)
Mortgage banking service fees		526			516			10			1.9	%
Change in value of mortgage servicing rights		(457	)		(701	)		244			(34.8	%)
Total service charges and fees		9,479			8,099			1,380			17.0	%
Gain on sale of loans		777			889			(112	)		(12.6	%)
Commission on nondeposit investment products		705			611			94			15.4	%
Increase in cash value of life insurance		626			681			(55	)		(8.1	%)
Change in indemnification asset		711			(149	)		860			(577.2	%)
Gain on sale of foreclosed assets		153			57			96			168.4	%
Other noninterest income		459			1,057			(598	)		(56.6	%)
Total other noninterest income		3,431			3,146			285			9.1	%
Total noninterest income	$	12,910		$	11,245		$	1,665			14.8	%

Noninterest income increased $1,665,000 (14.8%) to $12,910,000 during the three months ended June 30, 2017 compared to the three months ended June 30, 2016. The increase in noninterest income was due primarily to a $780,000 (22.0%) increase in service charges on deposit accounts, a $356,000 (9.1%) increase in ATM fees and interchange income, a $244,000 improvement in change in value of mortgage servicing rights, and an $860,000 improvement in change in indemnification asset that were partially offset by a $598,000 decrease in other noninterest income. The $780,000 increase in service charges on deposit accounts was due primarily to increased fee generation from both consumer and business checking customers. The $356,000 increase in ATM fees and interchange revenue was due primarily to the Company’s continued focus in this area, and growth in electronic payments volume. The $244,000 improvement in change in value of mortgage servicing rights (MSRs) was due to a smaller increase in the estimated weighted-average prepayment speed of the loans being serviced during the three months ended June 30, 2017 compared to the three months ended June 30, 2016. Estimated loan prepayment speeds increased from 8.3% per year at March 31, 2017 to 8.7% at June 30, 2017, while they changed from 11.6% at March 31, 2016 to 13.2% at June 30, 2016. Increased prepayment speeds translate into lower value of mortgage servicing rights. The $860,000 improvement in change in indemnification asset was due to the early termination of the related loss sharing agreements between the Company and the FDIC. As part of the termination agreement, the Company paid the FDIC $184,000, and recorded a $712,000 gain representing the difference between the Company’s payment to the FDIC and the recorded payable balance on May 9, 2017. The $598,000 decrease in other noninterest income was due primarily to $275,000 of vendor marketing incentives that were earned, and $238,000 of life insurance benefits in excess of cash value recorded during the three months ended June 30, 2016, and for which similar items were not present during the three months ended June 30, 2017.

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

	Three months ended June 30,
(dollars in thousands)	2017			2016		$ Change			% Change
Base salaries, overtime and temporary help, net of deferred loan origination costs		13,657			12,968	$	689			5.3	%
Commissions and incentives		2,173			2,471		(298	)		(12.1	%)
Employee benefits		4,664			4,606		58			1.3	%
Total salaries and benefits expense		20,494			20,045		449			2.2	%
Occupancy		2,705			2,529		176			7.0	%
Equipment		1,805			1,844		(39	)		(2.1	%)
Change in reserve for unfunded commitments		(135	)		408		(543	)		(133.1	%)
Data processing and software		2,441			2,355		86			3.7	%
Telecommunications		668			698		(30	)		(4.3	%)
ATM network charges		1,075			1,002		73			7.3	%
Professional fees		690			1,356		(666	)		(49.1	%)
Advertising and marketing		1,167			1,077		90			8.4	%
Postage		329			342		(13	)		(3.8	%)
Courier service		263			265		(2	)		(0.8	%)
Intangible amortization		352			359		(7	)		(1.9	%)
Operational losses		430			345		85			24.6	%
Provision for foreclosed asset losses		94			43		51			118.6	%
Foreclosed asset expense		38			114		(76	)		(66.7	%)
Assessments		420			578		(158	)		(27.3	%)
Merger and acquisition expense		—			162		(162	)		(100.0	%)
Litigation contingent liability		—			1,450		(1,450	)		(100.0	%)
Miscellaneous other expense		3,068			3,295		(227	)		(6.9	%)
Total other noninterest expense		15,410			18,222		(2,812	)		(15.4	%)
Total noninterest expense	$	35,904		$	38,267	($	2,363	)		(6.2	%)
Average full time equivalent employees		1,007			1,001		6			0.6	%
Merger & acquisition expense:
Base salaries		—			—
Professional fees		—			162
Advertising and marketing		—			—
Miscellaneous other expense		—			—
Total merger expense		—			162

Salary and benefit expenses increased $449,000 (2.2%) to $20,494,000 during the three months ended June 30, 2017 compared to $20,045,000 during the three months ended June 30, 2016. Base salaries, net of deferred loan origination costs increased $689,000 (5.3%) to $13,657,000. The increase in base salaries was due primarily to annual merit increases and a 0.6% increase in average full time equivalent employees to 1,007 from 1,001 in the year-ago quarter. Commissions and incentive compensation decreased $298,000 (12.1%) to $2,173,000 during the three months ended June 30, 2017 compared to the year-ago quarter due primarily to a decrease in commissions on loans as the increase in loan balances during the six months ended June 30, 2017 has been less than the increase in loan balances during the six months ended June 30, 2016. Benefits & other compensation expense increased $58,000 (1.3%) to $4,664,000 during the three months ended June 30, 2017 due primarily to increases in group insurance and employer tax expense that were partially offset by decreases in miscellaneous employee benefits.

Other noninterest expense decreased $2,812,000 (15.4%) to $15,410,000 during the three months ended June 30, 2017 compared to the three months ended June 30, 2016. The decrease in other noninterest expense was due primarily to the absence of any litigation settlement expense or merger expenses during the three months ended June 30, 2017 compared to a litigation settlement expense of $1,450,000, and merger expenses of $162,000 during the three months ended June 30, 2016, a $666,000 decrease in professional fees, a $543,000 decrease in change in

reserve for unfunded commitments, and a $158,000 decrease in deposit insurance assessments that were partially offset by an increase of $176,000 in occupancy expense. The $666,000 decrease in professional fees was due to system conversion consulting fees incurred during the three months ended June 30, 2016. The $543,000 decrease in change in reserve for unfunded commitments was due to a substantial increase in unfunded construction and other loan commitments during the three months ended June 30, 2016, compared to a decrease in such unfunded commitments during the three months ended June 30, 2017. The $158,000 decrease in assessments was due the lowering of FDIC deposit insurance rates during the third quarter of 2016. The increase in occupancy expense was due primarily to increased building maintenance expense. Included in the results of the Company for the three months ended June 30, 2016 was $162,000 of nonrecurring noninterest expense related to the Company’s acquisition of three bank branches from Bank of America on March 18, 2016.

The effective combined Federal and State income tax rate on income was 36.0% and 36.9% for the three months ended June 30, 2017 and 2016, respectively. The effective combined Federal and State income tax rate was greater than the Federal statutory tax rate of 35.0% due to State income tax expense of $2,143,000 and $1,596,000, respectively, in these periods that were partially offset by the effects of tax-exempt income of $1,042,000 and $975,000, respectively, from investment securities, $627,000 and $919,000, respectively, from increase in cash value of life insurance, low-income housing tax credits of $191,000 and $73,000, respectively, and $607,000 and $0, respectively, of equity compensation excess tax benefits. The low income housing tax credits and the equity compensation excess tax benefits represent direct reductions in tax expense. These offsetting items helped to reduce the effective combined Federal and State income tax rate from the combined Federal and State statutory income tax rate of approximately 42.0%.

Richard Smith, President and CEO of the Company commented, “We are very pleased to report record earnings for the second quarter of 2017. Key drivers to our success in the quarter were improvements in interest income, noninterest income, and well managed operating expenses. Strong loan demand returned in the quarter following a slow start in the first quarter which was the result of our record wet winter season. Noninterest income showed strong broad based increases as a result of our new deposit product line-up. Our performance improvements in large part can be attributed to our technology investments in 2016, and we are pleased to see our company reap these benefits”.

Smith added, “Overall, our performance in the quarter was broad based and we continue to challenge ourselves with ideas and technological solutions to move forward in our efforts to provide new and efficient solutions for our customers.”

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 Form 10-K for the year ended December 31, 2016. 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
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Statement of Income Data
Interest income	$	45,044		$	43,484		$	44,615		$	43,709		$	42,590
Interest expense		1,610			1,491			1,460			1,439			1,430
Net interest income		43,434			41,993			43,155			42,270			41,160
(Benefit from reversal of) provision for loan losses		(796	)		(1,557	)		(1,433	)		(3,973	)		(773	)
Noninterest income:
Service charges and fees		9,479			8,907			9,800			8,022			8,099
Other income		3,431			2,796			2,662			3,044			3,146
Total noninterest income		12,910			11,703			12,462			11,066			11,245
Noninterest expense:
Base salaries net of deferred loan origination costs		13,657			13,390			14,074			13,419			12,968
Incentive compensation expense		2,173			2,198			1,864			2,798			2,471
Employee benefits and other compensation expense		4,664			5,305			4,616			4,644			4,606
Total salaries and benefits expense		20,494			20,893			20,554			20,861			20,045
Other noninterest expense		15,410			14,929			16,009			16,555			18,222
Total noninterest expense		35,904			35,822			36,563			37,416			38,267
Income before taxes		21,236			19,431			20,487			19,893			14,911
Net income	$	13,589		$	12,079		$	12,533		$	12,199		$	9,405
Share Data
Basic earnings per share	$	0.59		$	0.53		$	0.55		$	0.53		$	0.41
Diluted earnings per share	$	0.58		$	0.52		$	0.54		$	0.53		$	0.41
Book value per common share	$	21.76		$	21.28		$	20.87		$	21.11		$	20.76
Tangible book value per common share	$	18.70		$	18.20		$	17.77		$	17.99		$	17.63
Shares outstanding		22,925,069			22,873,305			22,867,802			22,827,277			22,822,325
Weighted average shares		22,899,600			22,870,467			22,845,623			22,824,868			22,802,653
Weighted average diluted shares		23,240,112			23,231,778			23,115,708			23,098,534			23,070,151
Credit Quality
Nonperforming originated loans	$	10,581		$	13,234		$	12,894		$	13,083		$	10,022
Total nonperforming loans		17,429			19,511			20,128			20,952			19,977
Foreclosed assets, net of allowance		3,489			3,529			3,986			4,124			3,842
Loans charged-off		2,512			409			635			664			641
Loans recovered	$	434		$	480		$	1,087		$	2,612		$	536
Selected Financial Ratios
Return on average total assets		1.21	%		1.08	%		1.13	%		1.11	%		0.86	%
Return on average equity		10.93	%		9.97	%		10.47	%		10.15	%		7.98	%
Average yield on loans		5.23	%		5.06	%		5.38	%		5.36	%		5.32	%
Average yield on interest-earning assets		4.42	%		4.27	%		4.42	%		4.37	%		4.28	%
Average rate on interest-bearing liabilities		0.24	%		0.22	%		0.22	%		0.22	%		0.21	%
Net interest margin (fully tax-equivalent)		4.26	%		4.13	%		4.28	%		4.23	%		4.13	%
Supplemental Loan Interest Income Data:
Discount accretion PCI - cash basis loans	$	386		$	112		$	483		$	777		$	426
Discount accretion PCI - other loans		797			631			658			569			415
Discount accretion PNCI loans		987			798			637			883			1,459
All other loan interest income	$	34,248			33,373			34,463			33,540			32,038
Total loan interest income	$	36,418		$	34,914		$	36,241		$	35,769		$	34,338

TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands)

	Three months ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Balance Sheet Data
Cash and due from banks	$	167,649		$	323,706		$	305,612		$	315,088		$	216,786
Securities, available for sale		672,569			571,719			550,233			510,209			529,017
Securities, held to maturity		559,518			580,137			602,536			641,149			674,412
Restricted equity securities		16,956			16,956			16,956			16,956			16,956
Loans held for sale		2,537			1,176			2,998			7,777			2,904
Loans:
Commercial loans		225,743			212,685			218,002			217,110			209,840
Consumer loans		355,852			353,150			375,629			377,016			381,114
Real estate mortgage loans		2,111,497			2,070,815			2,043,543			1,998,913			1,913,024
Real estate construction loans		133,301			124,542			122,419			119,187			149,652
Total loans, gross		2,826,393			2,761,192			2,759,593			2,712,226			2,653,630
Allowance for loan losses		(28,143	)		(31,017	)		(32,503	)		(33,484	)		(35,509	)
Foreclosed assets		3,489			3,529			3,986			4,124			3,842
Premises and equipment		51,558			49,508			48,406			49,448			51,728
Cash value of life insurance		96,410			95,783			95,912			95,281			94,572
Goodwill		64,311			64,311			64,311			64,311			64,311
Other intangible assets		5,852			6,204			6,563			6,923			7,282
Mortgage servicing rights		6,596			6,860			6,595			6,208			6,720
Accrued interest receivable		11,605			11,236			12,027			10,819			11,602
Other assets		62,635			66,654			74,743			60,096			54,239
Total assets	$	4,519,935			4,527,954			4,517,968			4,467,131			4,352,492
Deposits:
Noninterest-bearing demand deposits		1,261,355			1,254,431			1,275,745			1,221,503			1,181,702
Interest-bearing demand deposits		956,690			947,006			887,625			910,638			867,638
Savings deposits		1,346,016			1,370,015			1,397,036			1,366,892			1,346,269
Time certificates		314,361			327,432			335,154			336,979			345,787
Total deposits		3,878,422			3,898,884			3,895,560			3,836,012			3,741,396
Accrued interest payable		781			770			818			774			727
Reserve for unfunded commitments		2,599			2,734			2,719			2,908			2,883
Other liabilities		59,868			66,938			67,364			69,695			57,587
Other borrowings		22,560			15,197			17,493			19,235			19,464
Junior subordinated debt		56,761			56,713			56,667			56,617			56,567
Total liabilities		4,020,991			4,041,236			4,040,621			3,985,241			3,878,624
Total shareholders’ equity		498,944			486,718			477,347			481,890			473,868
Accumulated other comprehensive gain (loss)		(4,501	)		(7,402	)		(7,913	)		4,953			6,073
Average loans		2,783,686			2,758,544			2,695,743			2,669,954			2,579,774
Average interest-earning assets		4,135,021			4,130,469			4,094,011			4,055,446			4,038,728
Average total assets		4,492,389			4,493,657			4,445,310			4,407,322			4,387,950
Average deposits		3,851,519			3,862,793			3,820,773			3,784,748			3,778,436
Average total equity	$	497,225		$	484,811		$	478,993		$	480,575		$	471,362
Total risk based capital ratio		14.6	%		14.9	%		14.6	%		14.7	%		14.7	%
Tier 1 capital ratio		13.8	%		13.9	%		13.6	%		13.6	%		13.6	%
Tier 1 common equity ratio		12.2	%		12.3	%		12.0	%		12.0	%		12.0	%
Tier 1 leverage ratio		11.0	%		10.8	%		10.6	%		10.6	%		10.4	%
Tangible capital ratio		9.6	%		9.3	%		9.1	%		9.3	%		9.4	%

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