TriBancshares(TCBK) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2025, was $34,019 thousand, up 17.3% from $29,051 thousand in the prior year[14]. - Basic earnings per share rose to $1.04 for the three months ended September 30, 2025, compared to $0.88 for the same period in 2024, reflecting an increase of 18.2%[14]. - Net income for the nine months ended September 30, 2025, was $87,924 thousand, compared to $85,834 thousand for the same period in 2024, reflecting a growth of 2.4%[20]. - Comprehensive income for the three months ended September 30, 2025, was $50,418 thousand, compared to $73,589 thousand in the same period of 2024, showing a decrease of 31.5%[16]. - The Company reported cash dividends paid of $112.9 million during the nine months ended September 30, 2025, compared to $54.4 million in the same period of 2024, marking a substantial increase of 107.3%[87]. Asset and Liability Management - Total assets increased to $9,878,836 thousand as of September 30, 2025, up from $9,673,728 thousand at December 31, 2024, representing a growth of 2.12%[11]. - Total liabilities increased to $8,574,531 thousand as of September 30, 2025, from $8,452,821 thousand at December 31, 2024, reflecting a growth of 1.44%[11]. - Total deposits increased to $8,334,461 thousand as of September 30, 2025, from $8,087,576 thousand at December 31, 2024, marking a growth of 3.06%[11]. - The total principal balance of loans owed, net of charge-offs, is $7,038,025,000 as of September 30, 2025, compared to $6,804,113,000 as of December 31, 2024[56]. - The total outstanding loans amount to $7,006,824 thousand, with a year-to-date gross charge-offs of $9,706 thousand[66]. Income and Expense Analysis - Net interest income for the three months ended September 30, 2025, was $89,555 thousand, an increase of 8.4% compared to $82,611 thousand for the same period in 2024[14]. - Non-interest income for the three months ended September 30, 2025, was $18,007 thousand, a 9.2% increase from $16,495 thousand in the same period of 2024[14]. - Total non-interest expense for the three months ended September 30, 2025, was $60,424,000, slightly up from $59,487,000 in 2024[96]. - Total non-interest income for the nine months ended September 30, 2025, was $51,170,000 compared to $48,132,000 in 2024[95]. - Total non-interest expense increased by $6.8 million or 3.9% to $181.1 million for the nine months ended September 30, 2025, compared to $174.3 million for the same period in 2024[160]. Credit Quality and Provisions - Provision for credit losses for the three months ended September 30, 2025, was $670 thousand, compared to $220 thousand in the same period of 2024, indicating a significant increase in provisions[14]. - The provision for credit losses increased to $9,063 thousand in 2025 from $4,670 thousand in 2024, indicating a rise of 94.5%[20]. - The allowance for credit losses (ACL) for loans is $124,571,000 as of September 30, 2025, slightly down from $125,366,000 as of December 31, 2024[56]. - The total allowance for credit losses as of September 30, 2025, was $124.6 million, which is deemed adequate to absorb expected losses in the loan portfolio[175]. - The total nonperforming loans amounted to $65.6 million as of September 30, 2025, with new nonperforming loans additions totaling $9.9 million during the quarter[173]. Capital and Ratios - The total capital for Tri Counties Bank as of September 30, 2025, was $1,233,469, with a ratio of 15.02% to risk-weighted assets, also exceeding the required levels[122]. - The Tier 1 capital to risk-weighted assets ratio for the consolidated entity as of September 30, 2025, is 13.85%, exceeding the minimum required ratio of 8.50%[122]. - The total risk-based capital ratio was 15.1% as of September 30, 2025, above the minimum regulatory requirement of 10.5%[186]. - The return on average assets (GAAP) was 1.36% for the three months ended September 30, 2025, compared to 1.20% in the same period of 2024[192]. - The return on average equity (GAAP) for the nine months ended September 30, 2025, was 9.24%, compared to 9.67% for the same period in 2024[193]. Loan Portfolio Composition - The Company’s loan portfolio is primarily focused on commercial real estate loans, which accounted for 68.4% of total loans as of September 30, 2025[171]. - Total commercial real estate loans amount to $4,793,394,000, an increase from $4,577,632,000 in the previous year[56]. - The total commercial real estate loans past due as of September 30, 2025, were $18,066,000, with a total outstanding balance of $4,577,632,000[70]. - The total for leases is $5,188 thousand, with no charge-offs reported[66]. - The total for farmland risk ratings was $265,146,000 in 2024, an increase from $204,457,000 in 2023, representing a growth of about 29.6%[67]. Market and Economic Conditions - The company noted that economic indicators remain stable, supporting general economic expansion despite potential risks from political policies and tariffs[148]. - The primary risks identified include a general decline in the economy, rising unemployment, and increasing vacancy rates, which could adversely affect borrowers' repayment abilities[59]. - The average yield on earning assets was 5.25%, an increase of 4 basis points from the previous quarter, while the average yield on loans decreased by 1 basis point to 5.75%[130]. - The estimated change in net interest income (NII) for a +300 basis points shock in interest rates is a decrease of 4.9%[199]. - The overnight Federal funds effective rate as of September 30, 2025, was 4.09%[197].