TriBancshares(US:TCBK)2025-08-11 19:01Financial Performance - Net income for the six months ended June 30, 2025, was $53,905 thousand, down 5.1% from $56,783 thousand in the same period of 2024[12]. - Net income for the three months ended June 30, 2025, was $27,542,000, a decrease from $29,034,000 for the same period in 2024, reflecting a decrease of approximately 5.1%[88]. - The company reported net income of $27,542,000 for the three months ended June 30, 2025, compared to $29,034,000 for the same period in 2024, reflecting a decrease of approximately 5.1%[188]. - The return on average equity (GAAP) for the six months ended June 30, 2025, was 8.61%, down from 9.74% in the same period of 2024[188]. - For the six months ended June 30, 2025, total consolidated revenues amounted to $263,601,000, slightly down from $264,086,000 in the same period of 2024[117]. Asset and Liability Management - Total assets increased to $9,923,983 thousand as of June 30, 2025, up from $9,673,728 thousand at December 31, 2024, representing a growth of 2.58%[10]. - Total liabilities increased to $8,657,160 thousand as of June 30, 2025, from $8,452,821 thousand at December 31, 2024, an increase of 2.43%[10]. - Total deposits rose to $8,375,809 thousand as of June 30, 2025, compared to $8,087,576 thousand at December 31, 2024, marking an increase of 3.56%[10]. - Cash and cash equivalents increased to $314,268 thousand as of June 30, 2025, compared to $144,956 thousand at December 31, 2024, representing a substantial growth of 117.5%[10]. - The total amount of commercial and industrial loans reached $467,564 thousand in 2023, a rise from $455,241 thousand in 2022, reflecting a growth of approximately 2.9%[61]. Credit Quality and Loss Provisions - Provision for credit losses increased to $4,665 thousand for the three months ended June 30, 2025, compared to $405 thousand for the same period in 2024[12]. - The provision for credit losses for the three months ended June 30, 2025, was $4.7 million, up from $3.7 million in the previous quarter, attributed to increased reserves due to loan growth[122]. - The total allowance for credit losses as of June 30, 2025, was $124.5 million, with an allowance for collectively evaluated loans at $120.5 million[168]. - The allowance for credit losses (ACL) to total loans was 1.79% as of June 30, 2025, down from 1.88% in the previous quarter[122]. - The company believes the current allowance for loan losses is adequate to absorb expected losses inherent in the loan portfolio[168]. Non-Interest Income and Expenses - Non-interest income for the six months ended June 30, 2025, was $33,163 thousand, up from $31,637 thousand in the same period of 2024, reflecting a growth of 4.8%[12]. - Total non-interest income for the three months ended June 30, 2025, was $17,090,000, an increase of 7.7% from $15,866,000 in the same period of 2024[86]. - Total non-interest expense for the six months ended June 30, 2025, was $120,716,000, compared to $114,843,000 for the same period in 2024, indicating an increase of approximately 5.1%[87]. - Total non-interest expense increased by $2.8 million or 4.8% to $61.1 million during the three months ended June 30, 2025, primarily due to an increase in salaries and benefits[150]. - The company reported total service charges and fees of $13,650,000 for the three months ended June 30, 2025, up from $12,796,000 in the same period of 2024, representing an increase of 6.7%[86]. Shareholder Returns and Stock Performance - The company repurchased common stock amounting to $19,822,000 in 2025, compared to $13,585,000 in 2024, reflecting an increase of approximately 46.0%[19]. - Cash dividends paid during the three months ended June 30, 2025, totaled $28.5 million, an increase of 21.8% from $23.4 million in the same period of 2024[79]. - The company repurchased 379,978 shares for a market value of $15.2 million during the three months ended June 30, 2025, compared to 244,992 shares for $9.1 million in the same period of 2024, representing an increase of 67.5% in share repurchase value[80]. - The total shareholders' equity increased by $11.3 million, resulting in a book value of $38.92 per share, up from $38.17 at March 31, 2025[179]. - The company repurchased a total of 391,520 shares during the three months ended June 30, 2025, at an average price of $40.09 per share[199]. Loan Portfolio and Performance - The total principal balance of loans owed, net of charge-offs, increased to $6,991,115 as of June 30, 2025, compared to $6,804,113 at December 31, 2024[53]. - Total outstanding loans increased to $6,958,993 thousand in 2023, up from $6,751,005 thousand in 2022, representing a growth of approximately 3.1%[61]. - The total loans, net of unamortized deferred loan fees and discounts, reached $6,958,993 as of June 30, 2025, compared to $6,768,523 at December 31, 2024[53]. - The company’s loan portfolio as of June 30, 2025, consisted of approximately $7.0 billion with a weighted average coupon rate of 5.57%[190]. - The total commercial real estate loans rose to $4,730,732 as of June 30, 2025, up from $4,577,632 at the end of 2024, indicating a growth of 3.34%[53]. Risk Management and Economic Factors - The primary risks identified include a general decline in the economy, rising unemployment, and increasing inflation or interest rates, which could adversely affect borrowers' repayment abilities[55]. - The company noted that geopolitical policy risks and proposed tariffs continue to present challenges, impacting credit risks within the loan portfolio[140]. - The company emphasizes ongoing monitoring of credit quality indicators, including criticized and classified loans, net charge-offs, and delinquency rates[57]. - The risk grading system classifies loans into categories, with $2,438,949,000 in total loans graded from Pass to Loss as of June 30, 2025[58]. - The company continues to monitor and manage its loan portfolio effectively, ensuring a strong position in the market[60].