3 unchanged sentences
(In thousands, except share data;
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
Cash and due from banks $ 91,377 $ 57,032
34 unchanged sentences
Preferred stock, no par value:
−Removed: 1,000,000 shares authorized, zero issued and outstanding at June 30, 2022 and December 31, 2021
+Added: 1,000,000 shares authorized, zero issued and outstanding at September 30, 2022 and December 31, 2021
Common stock, no par value:
50,000,000 shares authorized;
−Removed: 33,350,974 and 29,730,424 issued and outstanding at June 30, 2022 and December 31, 2021, respectively
+Added: 33,332,189 and 29,730,424 issued and outstanding at September 30, 2022 and December 31, 2021, respectively
696,348 532,244
8 unchanged sentences
Three months ended
−Removed: June 30, Six months ended
+Added: September 30, Nine months ended
+Added: September 30,
2022 2021 2022 2021
36 unchanged sentences
Three months ended
−Removed: June 30, Six months ended
+Added: September 30, Nine months ended
+Added: September 30,
2022 2021 2022 2021
Net income $ 37,338 $ 27,422 $ 89,076 $ 89,433
−Removed: Other comprehensive income (loss), net of tax:
−Removed: Unrealized gains (losses) on available for sale securities arising during the period ( 68,611 ) 5,206 ( 147,008 ) ( 3,484 )
+Added: Other comprehensive loss, net of tax:
+Added: Unrealized losses on available for sale securities arising during the period ( 76,740 ) ( 4,440 ) ( 223,748 ) ( 7,924 )
Change in minimum pension liability — — 58 —
Change in joint beneficiary agreements — — — ( 629 )
−Removed: Other comprehensive income (loss) ( 68,611 ) 5,206 ( 146,950 ) ( 4,113 )
+Added: Other comprehensive loss ( 76,740 ) ( 4,440 ) ( 223,690 ) ( 8,553 )
Comprehensive income (loss) $ ( 39,402 ) $ 22,982 $ ( 134,614 ) $ 80,880
7 unchanged sentences
Income (Loss) Total
−Removed: Balance at March 31, 2021 29,727,122 $ 531,367 $ 408,211 $ 2,961 $ 942,539
+Added: Balance at June 30, 2021 29,716,294 $ 531,038 $ 427,575 $ 8,167 $ 966,780
Net income 27,422 27,422
−Removed: Other comprehensive income 5,206 5,206
+Added: Other comprehensive loss ( 4,440 ) ( 4,440 )
Stock options exercised 4,000 58 58
6 unchanged sentences
( 7,429 ) ( 7,429 )
−Removed: Three months ended June 30, 2021 29,716,294 $ 531,038 $ 427,575 $ 8,167 $ 966,780
−Removed: Balance at March 31, 2022 33,837,935 $ 706,672 $ 479,868 $ ( 77,358 ) $ 1,109,182
+Added: Three months ended September 30, 2021 29,714,609 $ 531,339 $ 446,948 $ 3,727 $ 982,014
+Added: Balance at June 30, 2022 33,350,974 $ 696,441 $ 491,705 $ ( 145,969 ) $ 1,042,177
Net income 37,338 37,338
9 unchanged sentences
( 10,004 ) ( 10,004 )
−Removed: Three months ended June 30, 2022 33,350,974 $ 696,441 $ 491,705 $ ( 145,969 ) $ 1,042,177
+Added: Three months ended September 30, 2022 33,332,189 $ 696,348 $ 516,699 $ ( 222,709 ) $ 990,338
TRICO BANCSHARES
16 unchanged sentences
( 22,291 ) ( 22,291 )
−Removed: Six months ended June 30, 2021 29,716,294 $ 531,038 $ 427,575 $ 8,167 $ 966,780
+Added: Nine months ended September 30, 2021 29,714,609 $ 531,339 $ 446,948 $ 3,727 $ 982,014
Balance at January 1, 2022 29,730,424 $ 532,244 $ 466,959 $ 981 $ 1,000,184
10 unchanged sentences
( 25,796 ) ( 25,796 )
−Removed: Six months ended June 30, 2022 33,350,974 $ 696,441 $ 491,705 $ ( 145,969 ) $ 1,042,177
+Added: Nine months ended September 30, 2022 33,332,189 $ 696,348 $ 516,699 $ ( 222,709 ) $ 990,338
See accompanying notes to unaudited condensed consolidated financial statements.
2 unchanged sentences
(In thousands;
−Removed: For the six months ended June 30,
+Added: For the nine months ended September 30,
Operating activities:
15 unchanged sentences
Increase in cash value of life insurance ( 2,049 ) ( 2,062 )
+Added: Gain on life insurance death benefit ( 309 ) —
Loss on marketable equity securities 346 59
14 unchanged sentences
Purchases of premises and equipment ( 3,130 ) ( 2,114 )
+Added: Proceeds from conversion of life insurance 641 —
Cash acquired from VRB, net of cash consideration paid 426,883 —
39 unchanged sentences
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report”).
−Removed: The Company believes that the disclosures made are adequate to make the information not misleading.
+Added: The Company believes that the disclosures made herein are adequate to make the information not misleading.
Segment and Significant Group Concentration of Credit Risk
14 unchanged sentences
The Company measures expected credit losses on HTM debt securities on a collective basis by major security type, then further disaggregated by sector and bond rating.
−Removed: Accrued interest receivable on HTM debt securities totaled was considered insignificant at June 30, 2022 and is therefore excluded from the estimate of credit losses.
+Added: Accrued interest receivable on HTM debt securities totaled was considered insignificant at September 30, 2022 and is therefore excluded from the estimate of credit losses.
The estimate of expected credit losses considers historical credit loss information that is adjusted for current condition and reasonable and supportable forecasts based on current and expected changes in credit ratings and default rates.
Based on the implied guarantees of the U.
−Removed: Government or its agencies related to certain of these investment securities, and the absence of any historical or expected losses, substantially all qualify for a zero loss assumption.
+Added: Government or its agencies related to certain of these investment securities, and the absence of any historical or expected losses, substantially all qualify for a zero loss
Management has separately evaluated its HTM investment securities from obligations of state and political subdivisions utilizing the historical loss data represented by similar securities over a period of time spanning nearly 50 years.
8 unchanged sentences
Losses are charged against the ACL when management believes the uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
−Removed: No security credit losses were recognized during the three and six month periods ended June 30, 2022 and 2021, respectively.
+Added: No security credit losses were recognized during the three and nine month periods ended September 30, 2022 and 2021, respectively.
Loans that management has the intent and ability to hold until maturity or payoff are reported at principle amount outstanding, net of deferred loan fees and costs.
17 unchanged sentences
These macroeconomic scenarios incorporate variables that have historically been key drivers of increases and decreases in credit losses.
−Removed: These variables include, but are not limited to changes in environmental conditions, such as California unemployment rates, household debt levels and U.S.
+Added: These variables include, but are not limited to changes in environmental conditions, such as California unemployment rates, household debt levels, changes in the effective yield of BBB US Corporate debt, and U.S.
gross domestic product.
52 unchanged sentences
Most often, collateral includes accounts receivable, inventory, or equipment.
−Removed: Collateral securing these loans may depreciate over time, may be difficult to appraise, may be illiquid and may fluctuate in value based on the success of the business.
+Added: Collateral securing these loans may depreciate over time, may be
+Added: difficult to appraise, may be illiquid and may fluctuate in value based on the success of the business.
Actual and forecast changes in gross domestic product are believed to be corollary to losses associated with these credits.
Construction :
−Removed: While secured by real estate, construction loans represent a greater level of risk than term real estate loans due to the nature of the additional risks associated with the not only the completion of construction within an estimated time period and budget, but also the need to either sell the building or reach a level of stabilized occupancy sufficient to generate the cash flows necessary to support debt
−Removed: service and operating costs.
+Added: While secured by real estate, construction loans represent a greater level of risk than term real estate loans due to the nature of the additional risks associated with the not only the completion of construction within an estimated time period and budget, but also the need to either sell the building or reach a level of stabilized occupancy sufficient to generate the cash flows necessary to support debt service and operating costs.
The Company seeks to mitigate the additional risks associated with construction lending by requiring borrowers to comply with lower loan to value ratios and additional covenants as well as strong tertiary support of guarantors.
39 unchanged sentences
We recorded the fair values based on the valuations available as of reporting date.
−Removed: In accordance with business combination accounting guidance, we will continue to evaluate these fair values for up to
−Removed: one year following the merger date of March 25, 2022.
+Added: In accordance with business combination accounting guidance, we will continue to evaluate these fair values for up to one year following the merger date of March 25, 2022.
While management believes the information available and presented below provide a reasonable basis for estimating fair value, we may obtain additional information and evidence during the measurement period that could result in changes to the estimated fair value amounts.
26 unchanged sentences
The amortized cost, estimated fair values and allowance for credit losses of investments in debt securities are summarized in the following tables:
−Removed: June 30, 2022
+Added: September 30, 2022
(in thousands) Amortized
29 unchanged sentences
Total debt securities held to maturity $ 199,759 $ 8,381 $ — $ 208,140
−Removed: There were no sales of investment securities during the three and six months ended June 30, 2022 and 2021, respectively.
−Removed: Investment securities with an aggregate carrying value of $ 551,717,000 and $ 423,892,000 at June 30, 2022 and December 31, 2021, respectively, were pledged as collateral for specific borrowings, lines of credit or local agency deposits.
−Removed: The amortized cost and estimated fair value of debt securities at June 30, 2022 by contractual maturity are shown below.
+Added: There were no sales of investment securities during the three and nine months ended September 30, 2022 and 2021, respectively.
+Added: Investment securities with an aggregate carrying value of $ 578,794,000 and $ 423,892,000 at September 30, 2022 and December 31, 2021, respectively, were pledged as collateral for specific borrowings, lines of credit or local agency deposits.
+Added: The amortized cost and estimated fair value of debt securities at September 30, 2022 by contractual maturity are shown below.
Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
−Removed: At June 30, 2022, obligations of U.S.
+Added: At September 30, 2022, obligations of U.S.
government corporations and agencies with a cost basis totaling $ 1,570,291,000 consist almost entirely of residential real estate mortgage-backed securities whose contractual maturity, or principal repayment, will follow the repayment of the underlying mortgages.
1 unchanged sentence
government corporations and agencies is categorized based on final maturity date.
−Removed: At June 30, 2022, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S.
+Added: At September 30, 2022, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S.
government corporations and agencies to be approximately 6.51 years.
Average remaining life is defined as the time span after which the principal balance has been reduced by half.
−Removed: As of June 30, 2022, the contractual final maturity for available for sale and held to maturity investment securities is as follows:
+Added: As of September 30, 2022, the contractual final maturity for available for sale and held to maturity investment securities is as follows:
Debt Securities Available for Sale Held to Maturity
9 unchanged sentences
Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
−Removed: June 30, 2022:
+Added: September 30, 2022:
Less than 12 months 12 months or more Total
37 unchanged sentences
Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded.
−Removed: At June 30, 2022, 243 debt securities representing obligations of U.S.
+Added: At September 30, 2022, 170 debt securities representing obligations of U.S.
government agencies had unrealized losses with aggregate depreciation of 13.35 % from the Company’s amortized cost basis.
2 unchanged sentences
It is expected that the securities would not be settled at a price less than the amortized cost of the investment.
−Removed: Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of June 30, 2022.
−Removed: At June 30, 2022, 201 debt securities representing obligations of states and political subdivisions had unrealized losses with aggregate depreciation of 10.06 % from the Company’s amortized cost basis.
+Added: Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of September 30, 2022.
+Added: At September 30, 2022, 218 debt securities representing obligations of states and political subdivisions had unrealized losses with aggregate depreciation of 15.02 % from the Company’s amortized cost basis.
Corporate bonds:
1 unchanged sentence
It is expected that the securities would not be settled at a price less than the amortized cost of the investment.
−Removed: Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of June 30, 2022.
−Removed: At June 30, 2022, 6 debt securities representing corporate bonds had unrealized losses with aggregate depreciation of 1.87 % from the Company’s amortized cost basis.
+Added: Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of September 30, 2022.
+Added: At September 30, 2022, 6 debt securities representing corporate bonds had unrealized losses with aggregate depreciation of 4.92 % from the Company’s amortized cost basis.
Asset backed securities:
The unrealized losses on investments in asset backed securities were caused by increases in required yields by investors for these types of securities.
−Removed: At the time of purchase, each of these securities was rated AA or AAA and through June 30, 2022 has
−Removed: not experienced any deterioration in credit rating.
−Removed: At June 30, 2022, 37 asset backed securities had unrealized losses with aggregate depreciation of 3.31 % from the Company’s amortized cost basis.
+Added: At the time of purchase, each of these securities was rated AA or AAA and through September 30,
+Added: 2022 has not experienced any deterioration in credit rating.
+Added: At September 30, 2022, 46 asset backed securities had unrealized losses with aggregate depreciation of 2.98 % from the Company’s amortized cost basis.
The Company continues to monitor these securities for changes in credit rating or other indications of credit deterioration.
−Removed: Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of June 30, 2022.
+Added: Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of September 30, 2022.
Non-agency collateralized mortgage obligations:
1 unchanged sentence
It is expected that the securities would not be settled at a price less than the amortized cost of the investment.
−Removed: Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of June 30, 2022.
−Removed: At June 30, 2022, 20 debt securities representing corporate bonds had unrealized losses with aggregate depreciation of 9.16 % from the Company’s amortized cost basis.
+Added: Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of September 30, 2022.
+Added: At September 30, 2022, 22 debt securities representing corporate bonds had unrealized losses with aggregate depreciation of 10.95 % from the Company’s amortized cost basis.
The Company monitors credit quality of debt securities held-to-maturity through the use of credit rating.
1 unchanged sentence
The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator:
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
AAA/AA/A BBB/BB/B AAA/AA/A BBB/BB/B
7 unchanged sentences
A summary of loan balances follows:
−Removed: (in thousands) June 30, 2022 December 31, 2021
+Added: (in thousands) September 30, 2022 December 31, 2021
Commercial real estate:
23 unchanged sentences
The SBA ended PPP and did not accept new borrowing applications, effective May 31, 2021.
−Removed: PPP loan balances included in commercial and industrial loan totals above were $ 17,754,000 and $ 61,147,000 , net of approximately $ 318,000 and $ 2,164,000 in deferred fee income as of June 30, 2022 and December 31, 2021, respectively.
−Removed: During the three months ended June 30, 2022, the Company recognized $ 872,000 in fees on PPP loans as compared with $ 974,000 and $ 2,344,000 for the three months ended March 31, 2022 and June, 2021, respectively.
+Added: PPP loan balances included in commercial and industrial loan totals above were $ 1,942,000 and $ 61,147,000 , net of approximately $ 27,000 and $ 2,164,000 in deferred fee income as of September 30, 2022 and December 31, 2021, respectively.
+Added: During the three months ended September 30, 2022, the Company recognized $ 291,000 in fees on PPP loans as compared with $ 872,000 and $ 2,984,000 for the three months ended June 30, 2022 and September 30, 2021, respectively.
Based on the payment guarantee provided by the SBA as well as the expected short-term duration of the PPP loans acquired from VRB, the fair value of these loans approximates the principal balance outstanding as of the merger date, and therefore, no purchase discount was recorded.
1 unchanged sentence
For the periods indicated, the following tables summarize the activity in the allowance for credit losses on loans which is recorded as a contra asset, and the reserve for unfunded commitments which is recorded on the balance sheet within other liabilities:
−Removed: Allowance for credit losses – Three months ended June 30, 2022
+Added: Allowance for credit losses – Three months ended September 30, 2022
(in thousands) Beginning
17 unchanged sentences
Total $ 102,019 $ ( 267 ) $ 311 $ 3,795 $ 105,858
−Removed: Allowance for credit losses – Six months ended June 30, 2022
+Added: Allowance for credit losses – Nine months ended September 30, 2022
(in thousands) Beginning
17 unchanged sentences
Total $ 89,166 $ 2,037 $ ( 1,411 ) $ 1,841 $ 14,225 $ 105,858
+Added: The allowance for credit losses (ACL) was $ 101,488,000 as of September 30, 2022, a net increase of $ 3,544,000 over the immediately preceding quarter.
+Added: The provision for credit losses of $ 3,500,000 during the quarter was the net effect of increases in required reserves due to loan portfolio growth and changes in individually analyzed credits, which increased the provision need by approximately $ 3,218,000 and $ 1,356,000 , respectively, while net decreases in qualitative factors and improvement in overall portfolio credit quality reduced the provisioning need by approximately $ 1,030,000 .
+Added: In addition to the aforementioned quarterly increase, the provision for credit losses of $ 13,645,000 during the nine months ended September 30, 2022 was comprised of $ 10,820,000 in association with the loans acquired from Valley Republic Bank in the first quarter of 2022, and a net provision for credit losses of $ 2,825,000 associated with organic loan portfolio growth and the net changes in quantitative and qualitative factors associated with overall borrower performance.
+Added: Net recoveries for the three and nine months ended September 30, 2022 were approximately $ 44,000 and $ 430,000 , respectively while during the same three and nine month periods of 2021, the Company recorded $ 261,000 in net charge-offs and $ 339,000 in recoveries, respectively.
In determining the allowance for credit losses, accruing loans with similar risk characteristics are generally evaluated collectively.
4 unchanged sentences
This forecast data continues to evolve and included improving shifts in the magnitude of changes for both the unemployment and GDP factors leading up to the balance sheet date, particularly CA unemployment trends.
−Removed: However, management notes that the majority of economic forecasts utilized in the ACL calculation have remained directionally consistent with preceding quarters, as general economic conditions continue to improve, albeit at a pace slower than expected due to unforeseen disruptions in the supply chain and increasing energy prices.
−Removed: In addition, management notes that the actual and forecast increases in inflation that were previously identified by the Federal Reserve Board as "transitory", combined with overseas conflicts and leading to the rise in short-term interest rates and flattening or inversion of the yield curve, may be further indication of future economic contraction.
+Added: Inflation remains elevated from continued disruptions in the supply chain and volatile energy prices Despite the expected continued benefit to the net interest income of the Company from the elevated rate environment, Management notes the rapid intervals of rate increases by the Federal Reserve and flattening or inversion of the yield curve, have boosted expectations of the US entering a recession within 12 months and has led to the lowest levels of consumer sentiment in decades.
As a result, management continues to believe that certain credit weakness are likely present in the overall economy and that it is appropriate to cautiously maintain a reserve level that incorporates such risk factors.
30 unchanged sentences
Total $ 95,247 $ ( 2,392 ) $ 3,086 $ ( 6,775 ) $ 89,166
−Removed: Allowance for credit losses – Three months ended June 30, 2021
+Added: Allowance for credit losses – Three months ended September 30, 2021
(in thousands) Beginning
17 unchanged sentences
Total $ 89,527 $ ( 1,582 ) $ 1,321 $ ( 1,435 ) $ 87,831
−Removed: Allowance for credit losses – Six months ended June 30, 2021
+Added: Allowance for credit losses – Nine months ended September 30, 2021
(in thousands) Beginning
42 unchanged sentences
Based on the most recent analysis performed, the risk category of loans by class of loans is as follows for the period indicated:
−Removed: Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2022
+Added: Term Loans Amortized Cost Basis by Origination Year – As of September 30, 2022
(in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total
34 unchanged sentences
Total SFR 1st DT liens $ 154,671 $ 270,449 $ 136,710 $ 34,104 $ 34,554 $ 130,233 $ 10 $ 4,298 $ 765,029
−Removed: Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2022
+Added: Term Loans Amortized Cost Basis by Origination Year – As of September 30, 2022
(in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total
34 unchanged sentences
Total agriculture production loans $ 1,837 $ 2,635 $ 3,092 $ 1,204 $ 9,051 $ 1,214 $ 52,566 $ — $ 71,599
−Removed: Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2022
+Added: Term Loans Amortized Cost Basis by Origination Year – As of September 30, 2022
(in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total
34 unchanged sentences
Total multifamily loans $ 278,942 $ 100,752 $ 76,127 $ 109,374 $ 85,932 $ 147,137 $ 25,236 $ — $ 823,500
−Removed: Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2021
−Removed: (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total
Commercial real estate:
12 unchanged sentences
Total SFR 1st DT liens $ 269,846 $ 159,860 $ 40,947 $ 35,251 $ 36,869 $ 119,753 $ — $ 4,434 $ 666,960
+Added: Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2021
+Added: (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total
Consumer loans:
19 unchanged sentences
Total commercial and industrial loans $ 92,972 $ 20,350 $ 27,550 $ 11,639 $ 7,230 $ 7,268 $ 91,306 $ 1,040 $ 259,355
−Removed: Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2021
−Removed: (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total
Construction loans:
12 unchanged sentences
Total agriculture production loans $ 2,068 $ 878 $ 1,393 $ 951 $ 940 $ 895 $ 43,686 $ — $ 50,811
−Removed: Lease risk ratings
+Added: Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2021
+Added: (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total
Pass $ 6,572 $ — $ — $ — $ — $ — $ — $ — $ 6,572
10 unchanged sentences
The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated:
−Removed: Analysis of Past Due Loans - As of June 30, 2022
+Added: Analysis of Past Due Loans - As of September 30, 2022
(in thousands) 30-59 days 60-89 days > 90 days Total Past
35 unchanged sentences
Non Accrual Loans
−Removed: As of June 30, 2022 As of December 31, 2021
+Added: As of September 30, 2022 As of December 31, 2021
(in thousands) Non accrual with no allowance for credit losses Total non accrual Past due 90 days or more and still accruing Non accrual with no allowance for credit losses Total non accrual Past due 90 days or more and still accruing
16 unchanged sentences
Total, net $ 11,206 $ 17,319 $ 5 $ 25,704 $ 29,575 $ —
−Removed: Interest income on non accrual loans that would have been recognized during the three months ended June 30, 2022 and 2021, if all such loans had been current in accordance with their original terms, totaled $ 237,000 and $ 524,000 , respectively.
−Removed: Interest income actually recognized on these originated loans during the three months ended June 30, 2022 and 2021 was $ 6,000 and $ 159,000 , respectively.
−Removed: Interest income on non accrual loans that would have been recognized during the six months ended June 30, 2022 and 2021, if all such loans had been current in accordance with their original terms, totaled $ 404,000 and $ 1,060,000 , respectively.
−Removed: Interest income actually recognized on these originated loans during the six months ended June 30, 2022 and 2021 was $ 13,000 and $ 176,000 , respectively.
+Added: Interest income on non accrual loans that would have been recognized during the three months ended September 30, 2022 and 2021, if all such loans had been current in accordance with their original terms, totaled $ 497,000 and $ 412,000 , respectively.
+Added: Interest income actually recognized on these originated loans during the three months ended September 30, 2022 and 2021 was $ 272,000 and $ 117,000 , respectively.
+Added: Interest income on non accrual loans that would have been recognized during the nine months ended September 30, 2022 and 2021, if all such loans had been current in accordance with their original terms, totaled $ 901,000 and $ 1,472,000 , respectively.
+Added: Interest income actually recognized on these originated loans during the nine months ended September 30, 2022 and 2021 was $ 285,000 and $ 293,000 , respectively.
The following tables present the amortized cost basis of collateral dependent loans by class of loans as of the following periods:
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
(in thousands) Retail Office Warehouse Other Multifamily Farmland SFR-1st Deed SFR-2nd Deed Automobile/Truck A/R and Inventory Equipment Total
32 unchanged sentences
The following tables show certain information regarding TDRs that occurred during the periods indicated:
−Removed: TDR information for the three months ended June 30, 2022
+Added: TDR information for the three months ended September 30, 2022
(dollars in thousands) Number Pre-mod
25 unchanged sentences
Total 4 $ 7,210 $ 7,210 $ — — $ — $ —
−Removed: TDR information for the three months ended June 30, 2021
+Added: TDR information for the three months ended September 30, 2021
(dollars in thousands) Number Pre-mod
25 unchanged sentences
Total 6 $ 4,153 $ 4,147 $ 156 — $ — $ —
−Removed: TDR Information for the six months ended June 30, 2022
+Added: TDR Information for the nine months ended September 30, 2022
(dollars in thousands) Number Pre-mod
25 unchanged sentences
Total 7 $ 8,438 $ 8,650 $ — 3 $ 168 $ —
−Removed: TDR Information for the six months ended June 30, 2021
+Added: TDR Information for the nine months ended September 30, 2021
(dollars in thousands) Number Pre-mod
30 unchanged sentences
The objective of the modifications was to increase loan repayments by customers and thereby reduce net charge-offs.
−Removed: The modified loans are included in impaired loans for purposes of determining the level of the allowance for credit losses.
+Added: The modified loans are included in
+Added: impaired loans for purposes of determining the level of the allowance for credit losses.
For all new TDRs, an impairment analysis is conducted.
24 unchanged sentences
The following table presents the components of lease expense for the periods ended:
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
(in thousands) 2022 2021 2022 2021
5 unchanged sentences
The following table presents supplemental cash flow information related to leases for the periods ended:
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
(in thousands) 2022 2021 2022 2021
3 unchanged sentences
The following table presents the weighted average operating lease term and discount rate as of the period ended:
+Added: September 30,
Weighted-average remaining lease term (years) 8.3 9.3
Weighted-average discount rate 2.91 % 2.92 %
−Removed: At June 30, 2022, future expected operating lease payments are as follows:
+Added: At September 30, 2022, future expected operating lease payments are as follows:
(in thousands)
2 unchanged sentences
Discount for present value of expected cash flows ( 4,022 )
−Removed: Lease liability at June 30, 2022 $ 29,283
+Added: Lease liability at September 30, 2022 $ 28,717
Note 7 - Deposits
A summary of the balances of deposits follows:
−Removed: (in thousands) June 30,
+Added: (in thousands) September 30,
2022 December 31,
5 unchanged sentences
Total deposits $ 8,655,769 $ 7,367,159
−Removed: Certificate of deposit balances of zero and $ 1,000,000 from the State of California were included in time certificates, over $250,000, at June 30, 2022 and December 31, 2021, respectively.
+Added: Certificate of deposit balances of zero and $ 1,000,000 from the State of California were included in time certificates, over $250,000, at September 30, 2022 and December 31, 2021, respectively.
The Company participated in a deposit program offered by the State of California whereby the State made deposits at the Company’s request subject to collateral and credit worthiness constraints, generally more favorable than other wholesale funding sources available to the Company.
−Removed: Overdrawn deposit balances of $ 1,257,000 and $ 2,324,000 were classified as consumer loans at June 30, 2022 and December 31, 2021, respectively.
+Added: Overdrawn deposit balances of $ 1,803,000 and $ 2,324,000 were classified as consumer loans at September 30, 2022 and December 31, 2021, respectively.
Note 8 - Subordinated Debentures
1 unchanged sentence
Coupon Rate (Variable) 3 mo.
−Removed: LIBOR + June 30, 2022 December 31, 2021
+Added: LIBOR + September 30, 2022 December 31, 2021
Subordinated Debt Series Maturity
16 unchanged sentences
The following table presents a summary of the Bank’s commitments and contingent liabilities:
−Removed: (in thousands) June 30,
+Added: (in thousands) September 30,
2022 December 31,
9 unchanged sentences
Dividends Paid
−Removed: The Bank paid to the Company cash dividends in the aggregate amounts of $ 27,723,000 and $ 8,367,000 during the three months ended June 30, 2022 and 2021, respectively, and $ 35,505,000 and $ 16,139,000 , respectively, during the equivalent six month periods then ended.
+Added: The Bank paid to the Company cash dividends in the aggregate amounts of $ 16,860,000 and $ 7,058,000 during the three months ended September 30, 2022 and 2021, respectively, and $ 52,365,000 and $ 23,197,000 , respectively, during the equivalent nine month periods then ended.
The Bank is regulated by the FDIC and the DFPI.
3 unchanged sentences
The actual timing of any share repurchases will be determined by the Company's management and therefore the total value of the shares to be purchased under the 2021 Repurchase Plan is subject to change.
−Removed: The 2021 Repurchase Plan has no expiration date (in accordance with applicable laws and regulations) and during the three and six month periods ending June 30, 2022, the Company repurchased 526,749 shares with a market value of $ 21,750,000 , respectively.
−Removed: During the three and six month periods ending June 30, 2021, the Company repurchased 45,354 shares with a market value of $ 2,101,000 .
−Removed: As of June 30, 2022, approximately 1,410,000 shares remained available for repurchase under the 2021 Repurchase Plan.
+Added: The 2021 Repurchase Plan has no expiration date (in accordance with applicable laws and regulations) and during the three and nine month periods ending September 30, 2022, the Company repurchased 45,132 and 571,881 shares with a market value of $ 2,059,000 and $ 23,809,000 , respectively.
+Added: During the three and nine month periods ending September 30, 2021, the Company repurchased 17,963 and 63,317 shares with a market value of $ 730,000 and $ 2,831,000 , respectively.
+Added: As of September 30, 2022, approximately 1,364,000 shares remained available for repurchase under the 2021 Repurchase Plan.
In connection with approval of the 2021 Repurchase Plan, the Company’s previous repurchase program adopted on November 12, 2019 (the 2019 Repurchase Plan) was terminated.
−Removed: Under the 2019 Repurchase Plan, the Company repurchased 223 shares during the six months ended June 30, 2021.
+Added: Under the 2019 Repurchase Plan, the Company repurchased 223 shares during the nine months ended September 30, 2021.
Stock Repurchased Under Equity Compensation Plans
The Company's shareholder-approved equity compensation plans permit award recipients the option tender recently vested shares in lieu of cash for the payment of exercise price, if applicable, and the tax withholding on such shares.
−Removed: During the three months ended June 30, 2022 and 2021, equity award holders tendered 3,687 and zero shares, respectively, of the Company’s common stock in connection with option exercises.
−Removed: During the six months ended June 30, 2022 and 2021, equity award holders tendered 5,019 and zero shares, respectively, of the Company’s common stock in connection with option exercises.
−Removed: Equity holders also tendered 14,007 and 9,660 shares in connection with the tax withholding requirements of other share based awards during the three months ended June 30, 2022 and 2021, respectively, and 14,007 and 9,730 during the six months ended June 30, 2022 and 2021, respectively.
−Removed: In total, shares of the Company's common stock tendered had market values of $ 775,000 and $ 450,000 during the quarters ended June 30, 2022 and 2021, respectively, and $ 830,000 and $ 452,000 during the year to date periods ended June 30, 2022 and 2021.
+Added: During the three months ended September 30, 2022 and 2021, equity award holders tendered 32,910 and zero shares, respectively, of the Company’s common stock in connection with option exercises.
+Added: During the nine months ended September 30, 2022 and 2021, equity award holders tendered 37,929 and zero shares, respectively, of the Company’s common stock in connection with option exercises.
+Added: Equity holders also tendered 13,833 and 9,683 shares in connection with the tax withholding requirements of other share based awards during the three months ended September 30, 2022 and 2021, respectively, and 27,840 and 19,413 during the nine months ended September 30, 2022 and 2021, respectively.
+Added: In total, shares of the Company's common stock tendered had market values of $ 2,199,000 and $ 384,000 during the quarters ended September 30, 2022 and 2021, respectively, and $ 3,029,000 and $ 836,000 during the year to date periods ended September 30, 2022 and 2021, respectively.
The tendered shares were retired.
6 unchanged sentences
While no new awards can be granted under the 2009 Plan, existing grants continue to be governed by the terms, conditions and procedures set forth in any applicable award agreement.
−Removed: Stock option activity during the six months ended June 30, 2022 is summarized in the following table:
+Added: Stock option activity during the nine months ended September 30, 2022 is summarized in the following table:
of Shares Weighted
4 unchanged sentences
Options forfeited — —
−Removed: Outstanding at June 30, 2022 63,500 $ 19.90
−Removed: The following table shows the number, weighted-average exercise price, intrinsic value, and weighted average remaining contractual life of options exercisable, options not yet exercisable and total options outstanding as of June 30, 2022:
+Added: Outstanding at September 30, 2022 19,500 $ 20.90
+Added: The following table shows the number, weighted-average exercise price, intrinsic value, and weighted average remaining contractual life of options exercisable, options not yet exercisable and total options outstanding as of September 30, 2022:
Exercisable Currently Not
3 unchanged sentences
Intrinsic value (in thousands) $ 463 $ — $ 463
−Removed: Weighted average remaining contractual term (yrs.) 1.0 0 years 1.0
−Removed: As of June 30, 2022 all options outstanding are fully vested and are expected to be exercised prior to expiration.
−Removed: The Company did not modify any option grants during 2021 or the six months ended June 30, 2022.
−Removed: Activity related to restricted stock unit awards during the six months ended June 30, 2022 is summarized in the following table:
+Added: Weighted average remaining contractual term (yrs.) 1.1 n/a 1.1
+Added: As of September 30, 2022 all options outstanding are fully vested and are expected to be exercised prior to expiration.
+Added: The Company did not modify any option grants during 2021 or the nine months ended September 30, 2022.
+Added: Activity related to restricted stock unit awards during the nine months ended September 30, 2022 is summarized in the following table:
Vesting RSUs Market Plus
4 unchanged sentences
RSUs forfeited/expired ( 1,421 ) ( 1,572 )
−Removed: Outstanding at June 30, 2022 99,554 98,191
−Removed: The 99,554 of service condition vesting RSUs outstanding as of June 30, 2022 include a feature whereby each RSU outstanding is credited with a dividend amount equal to any common stock cash dividend declared and paid, and the credited amount is divided by the closing price of the Company’s stock on the dividend payable date to arrive at an additional amount of RSUs outstanding under the original grant.
+Added: Outstanding at September 30, 2022 113,872 88,135
+Added: The 113,872 of service condition vesting RSUs outstanding as of September 30, 2022 include a feature whereby each RSU outstanding is credited with a dividend amount equal to any common stock cash dividend declared and paid, and the credited amount is divided by the closing price of the Company’s stock on the dividend payable date to arrive at an additional amount of RSUs outstanding under the original grant.
The dividend credits follow the same vesting requirements as the RSU awards and are not considered participating securities.
−Removed: The 99,554 of service condition vesting RSUs outstanding as of June 30, 2022 are expected to vest, and be released, on a weighted-average basis, over the next 0.9 years.
−Removed: The Company expects to recognize $ 3,351,000 of pre-tax compensation costs related to these service condition vesting RSUs between June 30, 2022 and their vesting dates.
−Removed: The Company did not modify any service condition vesting RSUs during 2021 or during the six months ended June 30, 2022.
−Removed: The 98,191 of market plus service condition vesting RSUs outstanding as of June 30, 2022 are expected to vest, and be released, on a weighted-average basis, over the next 1.0 years.
−Removed: The Company expects to recognize $ 1,090,000 of pre-tax compensation costs related to these RSUs between June 30, 2022 and their vesting dates.
−Removed: As of June 30, 2022, the number of market plus service condition vesting RSUs outstanding that will actually vest, and be released, may be reduced to zero or increased to 147,287 depending on the total return of the Company’s common stock versus the total return of an index of bank stocks from the grant date to the vesting date.
−Removed: The Company did not modify any market plus service condition vesting RSUs during 2021 or during the six months ended June 30, 2022.
+Added: The 113,872 of service condition vesting RSUs outstanding as of September 30, 2022 are expected to vest, and be released, on a weighted-average basis, over the next 1.9 years.
+Added: The Company expects to recognize $ 3,348,000 of pre-tax compensation costs related to these service condition vesting RSUs between September 30, 2022 and their vesting dates.
+Added: The Company did not modify any service condition vesting RSUs during 2021 or during the nine months ended September 30, 2022.
+Added: The 88,135 of market plus service condition vesting RSUs outstanding as of September 30, 2022 are expected to vest, and be released, on a weighted-average basis, over the next 1.8 years.
+Added: The Company expects to recognize $ 1,309,000 of pre-tax compensation costs related to these RSUs between September 30, 2022 and their vesting dates.
+Added: As of September 30, 2022, the number of market plus service condition vesting RSUs outstanding that will actually vest, and be released, may be reduced to zero or increased to 132,203 depending on the total return of the Company’s common stock versus the total return of an index of bank stocks from the grant date to the vesting date.
+Added: The Company did not modify any market plus service condition vesting RSUs during 2021 or during the nine months ended September 30, 2022.
Note 12 - Non-interest Income and Expense
1 unchanged sentence
Three months ended
−Removed: June 30, Six months ended
+Added: September 30, Nine months ended
+Added: September 30,
(in thousands) 2022 2021 2022 2021
11 unchanged sentences
Gain on sale of investment securities — — — —
−Removed: (Loss) gain on marketable equity securities ( 94 ) 8 ( 231 ) ( 45 )
+Added: Loss on marketable equity securities ( 115 ) ( 14 ) ( 346 ) ( 59 )
Other 459 139 1,431 958
3 unchanged sentences
Three months ended
−Removed: June 30, Six months ended
+Added: September 30, Nine months ended
+Added: September 30,
(in thousands) 2022 2021 2022 2021
26 unchanged sentences
Earnings per share have been computed based on the following:
−Removed: Three months ended June 30,
+Added: Three months ended September 30,
(in thousands) 2022 2021
4 unchanged sentences
Options excluded from diluted earnings per share because of their antidilutive effect — —
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
(in thousands) 2022 2021
8 unchanged sentences
The components of other comprehensive income (loss) and related tax effects are as follows:
−Removed: Three months ended June 30, Six months ended
−Removed: June 30, 2022
+Added: Three months ended September 30, Nine months ended
+Added: September 30, 2022
(in thousands) 2022 2021 2022 2021
−Removed: Unrealized holding losses (gains) on available for sale securities before reclassifications $ ( 97,408 ) $ 7,392 $ ( 208,710 ) $ ( 4,945 )
+Added: Unrealized holding losses on available for sale securities before reclassifications $ ( 109,341 ) $ ( 6,304 ) $ ( 317,659 ) $ ( 11,249 )
Amounts reclassified out of AOCI:
Realized gains on debt securities — — — —
−Removed: Unrealized holding losses (gains) on available for sale securities after reclassifications ( 97,408 ) 7,392 ( 208,710 ) ( 4,945 )
+Added: Unrealized holding losses on available for sale securities after reclassifications ( 109,341 ) ( 6,304 ) ( 317,659 ) ( 11,249 )
Tax effect 32,601 1,864 93,911 3,325
−Removed: Unrealized holding losses (gains) on available for sale securities, net of tax ( 68,611 ) 5,206 ( 147,008 ) ( 3,484 )
+Added: Unrealized holding losses on available for sale securities, net of tax ( 76,740 ) ( 4,440 ) ( 223,748 ) ( 7,924 )
Change in unfunded status of the supplemental retirement plans before reclassifications 5 ( 49 ) 97 ( 147 )
9 unchanged sentences
Change in joint beneficiary agreement liability before reclassifications, net of tax — — — ( 629 )
−Removed: Total other comprehensive (loss) income $ ( 68,611 ) $ 5,206 $ ( 146,950 ) $ ( 4,113 )
−Removed: The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows:
−Removed: (in thousands) June 30,
+Added: Total other comprehensive loss $ ( 76,740 ) $ ( 4,440 ) $ ( 223,690 ) $ ( 8,553 )
+Added: The components of accumulated other comprehensive (loss) income, included in shareholders’ equity, are as follows:
+Added: (in thousands) September 30,
2022 December 31,
40 unchanged sentences
When the fair value of the collateral is based on an observable market price or a current appraised value which uses substantially observable data, the Company records the loan as nonrecurring Level 2.
−Removed: When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value, or the appraised value contains a significant unobservable assumption, such as deviations from comparable sales, and there is no observable market price, the Company records the loan as nonrecurring Level 3.
+Added: When an appraised value is not available or management determines the fair value of the collateral is further
+Added: impaired below the appraised value, or the appraised value contains a significant unobservable assumption, such as deviations from comparable sales, and there is no observable market price, the Company records the loan as nonrecurring Level 3.
Foreclosed assets - Foreclosed assets include assets acquired through, or in lieu of, loan foreclosure.
9 unchanged sentences
The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):
−Removed: Fair value at June 30, 2022 Total Level 1 Level 2 Level 3
+Added: Fair value at September 30, 2022 Total Level 1 Level 2 Level 3
Marketable equity securities $ 2,592 $ 2,592 $ — $ —
22 unchanged sentences
Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally corresponds with the Company’s quarterly valuation process.
−Removed: There were no transfers between any levels during the six months ended June 30, 2022, or the year ended December 31, 2021.
+Added: There were no transfers between any levels during the nine months ended September 30, 2022, or the year ended December 31, 2021.
The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the time periods indicated.
Had there been any transfer into or out of Level 3 during the time periods indicated, the amount included in the “Transfers into (out of) Level 3” column would represent the beginning balance of an item in the period (interim quarter) during which it was transferred (in thousands):
−Removed: Three months ended June 30, Beginning
+Added: Three months ended September 30, Beginning
Balance Transfers
4 unchanged sentences
Mortgage servicing rights $ 5,603 — $ ( 233 ) $ 366 $ 5,736
−Removed: Six months ended June 30, Beginning
+Added: Nine months ended September 30, Beginning
Balance Transfers
7 unchanged sentences
Conversely, a decrease in the mortgage prepayment speed and discount rate will result in a positive fair value adjustment (and increase in the fair value measurement).
−Removed: The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2022 and December 31, 2021:
−Removed: As of June 30, 2022:
+Added: The following table presents quantitative information about recurring Level 3 fair value measurements at September 30, 2022 and December 31, 2021:
+Added: As of September 30, 2022:
(in thousands) Valuation
7 unchanged sentences
The tables below present the recorded investment in assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated (in thousands):
−Removed: June 30, 2022 Total Level 1 Level 2 Level 3 Total Gains (Losses)
+Added: September 30, 2022 Total Level 1 Level 2 Level 3 Total Gains (Losses)
+Added: Individually evaluated loans $ 5,216 — — $ 5,216 $ ( 1,567 )
Foreclosed assets 770 — — 770 13
2 unchanged sentences
Individually evaluated loans $ 3,683 — — $ 3,683 $ ( 1,105 )
−Removed: Foreclosed assets — — — — —
−Removed: Total assets measured at fair value $ 3,683 — — $ 3,683 $ ( 1,105 )
−Removed: June 30, 2021 Total Level 1 Level 2 Level 3 Total Losses
+Added: September 30, 2021 Total Level 1 Level 2 Level 3 Total Losses
Individually evaluated loans $ 2,942 — — $ 2,942 $ ( 1,604 )
19 unchanged sentences
Under certain circumstances, management discounts are applied based on specific characteristics of an individual property.
−Removed: The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at June 30, 2022:
−Removed: June 30, 2022 Fair Value
+Added: The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2022:
+Added: September 30, 2022 Fair Value
(in thousands) Valuation
1 unchanged sentence
Weighted Average
+Added: Individually evaluated loans $ 5,216 Sales comparison
+Added: Income approach Adjustment for differences between
+Added: comparable sales;
+Added: Capitalization rate Not meaningful
Foreclosed assets (Residential real estate) $ 770 Sales comparison
15 unchanged sentences
Further, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on the fair value estimates and have not been considered in any of these estimates.
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
(in thousands) Carrying
26 unchanged sentences
Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices.
−Removed: The Company’s
−Removed: capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
+Added: The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets.
−Removed: The following tables present actual and required capital ratios as of June 30, 2022 and December 31, 2021 for the Company and the Bank under applicable Basel III Capital Rules.
−Removed: The minimum capital amounts presented include the minimum required capital levels as of June 30, 2022 and December 31, 2021 based on the then phased-in provisions of the Basel III Capital Rules.
+Added: The following tables present actual and required capital ratios as of September 30, 2022 and December 31, 2021 for the Company and the Bank under applicable Basel III Capital Rules.
+Added: The minimum capital amounts presented include the minimum required capital levels as of September 30, 2022 and December 31, 2021 based on the then phased-in provisions of the Basel III Capital Rules.
Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.
1 unchanged sentence
Considered Well
−Removed: As of June 30, 2022:
+Added: As of September 30, 2022:
Amount Ratio Amount Ratio Amount Ratio
29 unchanged sentences
Tri Counties Bank $ 811,713 9.77 % $ 332,196 4.00 % $ 415,245 5.00 %
−Removed: As of June 30, 2022 and December 31, 2021, capital levels at the Company and the Bank exceed all capital adequacy requirements under the Basel III Capital Rules.
−Removed: Also, at June 30, 2022 and December 31, 2021, the Bank’s capital levels exceeded the minimum amounts necessary to be considered well capitalized under the current regulatory framework for prompt corrective action.
+Added: As of September 30, 2022 and December 31, 2021, capital levels at the Company and the Bank exceed all capital adequacy requirements under the Basel III Capital Rules.
+Added: Also, at September 30, 2022 and December 31, 2021, the Bank’s capital levels exceeded the minimum amounts necessary to be considered well capitalized under the current regulatory framework for prompt corrective action.
The Basel III Capital Rules require for all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers.
The capital conservation buffer is exclusively composed of common equity tier 1 capital, and it applies to each of the risk-based capital ratios but not the leverage ratio.
−Removed: At June 30, 2022, the Company and the Bank are in compliance with the capital conservation buffer requirement.
+Added: At September 30, 2022, the Company and the Bank are in compliance with the capital conservation buffer requirement.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.