TriBancshares(TCBK) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $34.0 million, or $1.04 per diluted share, representing a 17.1% increase from $27.5 million, or $0.84 per diluted share, in Q3 2024[5] - Net income for Q3 2025 was $34,019,000, a 23.0% increase from $27,542,000 in Q2 2025[53] - Return on average equity (GAAP) for the three months ended September 30, 2025, was 10.47%, up from 8.68% in the previous quarter[57] - Return on average total assets improved to 1.36% in Q3 2025, up from 1.13% in Q2 2025[53] - Pre-tax pre-provision return on average assets (Non-GAAP) for the third quarter of 2025 was 1.89%, an increase from 1.74% in the previous quarter[55] Interest Income and Margin - Net interest income (FTE) increased to $89.8 million, up $3.0 million or 3.51% from the previous quarter, with a net interest margin (FTE) of 3.92%[5] - Interest income for the three months ended September 30, 2025, was $119.99 million, a 3.1% increase from the previous quarter[18] - The net interest margin improved by 4 basis points to 3.92% for the quarter ended September 30, 2025[22] - Net interest income rose to $89,555,000 in Q3 2025, compared to $86,519,000 in Q2 2025, reflecting a growth of 2.4%[53] Loan and Deposit Balances - Loan balances rose by $47.8 million or 2.7% annualized from the previous quarter, and increased by $322.9 million or 4.8% year-over-year[5] - Total loans outstanding reached $7.0 billion, an increase of $322.9 million or 4.8% year-over-year[8] - Total deposits grew by $138.6 million or 6.7% from the previous quarter, amounting to $8.36 billion[13] - Deposit balances decreased by $41.3 million or 2.0% annualized from the previous quarter, but increased by $297.4 million or 3.7% compared to the same quarter last year[5] Credit Quality - The provision for credit losses was $0.7 million in Q3 2025, significantly lower than $4.7 million in the previous quarter, indicating improved credit quality[6] - The allowance for credit losses was $124.6 million, representing 1.78% of total loans as of September 30, 2025[30] - Non-performing loans increased by $0.8 million to $65.6 million as of September 30, 2025[36] - The ratio of classified loans to total loans was 1.88%, down 6 basis points from the previous quarter[34] Non-Interest Income and Expenses - Non-interest income increased by $0.9 million or 5.4% to $18.0 million during the three months ended September 30, 2025, compared to $17.1 million in the previous quarter[42] - Total non-interest expense for the quarter ended September 30, 2025, decreased by $0.7 million or 1.2% to $60.4 million compared to $61.1 million for the quarter ended June 30, 2025[45] - Total non-interest expense increased by $0.9 million or 1.6% to $60.4 million during the three months ended September 30, 2025, compared to $59.5 million for the same period in 2024[46] Shareholders' Equity - Total shareholders' equity increased by $37.5 million during Q3 2025, resulting in a book value of $40.12 per share[9] - The total shareholders' equity rose to $1,304,305 as of September 30, 2025, up from $1,266,823 in the previous quarter, marking a growth of 2.9%[54] - Common shareholders' equity per share (GAAP) increased to $40.12 for the three months ended September 30, 2025, from $38.92 in the previous quarter[57] Efficiency and Cost Management - The efficiency ratio improved to 56.18% in Q3 2025, down from 59.00% in the previous quarter[6] - The cost of total interest-bearing deposits decreased by 24 basis points year-over-year, reflecting effective cost management strategies[17] - Total salaries and benefits expense decreased by $0.6 million or 1.5% to $37.7 million, reflecting a reduction in full-time equivalent staff[45]