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Mar 31, 2021
TriCo Q1 2021 Earnings Report
Net income and diluted earnings per share increased compared to the previous quarter and the same quarter last year.
Key Takeaways
TriCo Bancshares reported a net income of $33.649 million for the quarter ended March 31, 2021, a significant increase compared to both the previous quarter and the same quarter last year. Diluted earnings per share also saw a substantial rise, driven by organic and PPP loan growth and strategic deployment of liquidity.
Net income reached $33.649 million, up from $23.657 million in the previous quarter and $16.121 million year-over-year.
Diluted earnings per share increased to $1.13, compared to $0.79 in the previous quarter and $0.53 year-over-year.
Organic loan growth, excluding PPP, totaled $68.19 million (6.16% annualized), while total loan growth, excluding PPP, was $169.78 million (15.3% annualized).
The efficiency ratio improved to 50.42% for the first quarter of 2021, compared to 55.11% in the trailing quarter and 59.66% in the same quarter of the prior year.
Forward Guidance
Management anticipates total round 2 PPP originations will approximate 1,700 loans for $190,215,000 and which are expected generate $9,055,000 in fees from the SBA.
Positive Outlook
- Continued strong deposit growth.
- Effective deployment of liquidity into loans and investment securities.
- Significant reduction in noninterest expenses.
- Improved efficiency ratio.
- Increased dividend to shareholders.
Challenges Ahead
- Potential continued economic impacts of COVID-19.
- Uncertainty regarding future stimulus.
- Downward pressure on portfolio yields due to market interest rate declines.
- Potential for additional borrowers to request loan modifications.
- Risk of downgrades for credits receiving deferral modifications until payment performance supports an upgrade.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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