XML 43 R29.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of consolidated income tax expense are as follows (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Current tax expense |  |  |  |  |
Federal | $ | 26,133 |  |  | $ | 34,155 |  |  | $ | 28,763 |
State | 19,781 |  |  | 22,355 |  |  | 18,221 |
| $ | 45,914 |  |  | 56,510 |  |  | 46,984 |
Deferred tax expense |  |  |  |  |
Federal | (1,330) |  |  | (5,224) |  |  | (872) |
State | (1,069) |  |  | (2,798) |  |  | (64) |
| (2,399) |  |  | (8,022) |  |  | (936) |
Total tax expense | $ | 43,515 |  |  | $ | 48,488 |  |  | $ | 46,048 |
A deferred tax asset or liability is recognized for the tax consequences of temporary differences in the recognition of revenue and expense for financial and tax reporting purposes. The net change during the year in the deferred tax asset or liability results in a deferred tax expense or benefit. The Company recognized, as components of tax expense, tax credits and other tax benefits, and amortization expense relating to our investments in Qualified Affordable Housing Projects as follows for the periods indicated (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Tax credits and other tax benefits – decrease in tax expense | $ | (10,857) |  |  | $ | (6,370) |  |  | $ | (4,224) |
Amortization – increase in tax expense | $ | 9,092 |  |  | $ | 6,178 |  |  | $ | 3,604 |
The carrying value of Low Income Housing Tax Credit Funds was $96.9 and $91.0 million as of December 31, 2023 and 2022, respectively. As of December 31, 2023, the Company has committed to make additional capital contributions to the Low Income Housing Tax Credit Funds in the amount of $63.3 million, and these contributions are expected to be made over the next several years. The provisions for income taxes applicable to income before taxes for the years ended December 31, 2023, 2022 and 2021 differ from amounts computed by applying the statutory Federal income tax rates to income before taxes. The effective tax rate and the statutory federal income tax rate are reconciled as follows:
| Year Ended December 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Federal statutory income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit | 7.9 |  |  | 7.9 |  |  | 7.9 |
Tax-exempt interest on municipal obligations | (0.7) |  |  | (0.7) |  |  | (0.5) |
Tax-exempt life insurance related income | (0.4) |  |  | (0.4) |  |  | (0.5) |
Low income housing tax credits | (6.6) |  |  | (3.7) |  |  | (2.6) |
Low income housing tax credit amortization | 5.6 |  |  | 3.6 |  |  | 2.2 |
Equity compensation | 0.3 |  |  | (0.2) |  |  | (0.1) |
Non-deductible merger expenses | — |  |  | 0.1 |  |  | 0.1 |
Other | (0.1) |  |  | 0.3 |  |  | 0.6 |
Effective Tax Rate | 27.0 | % |  | 27.9 | % |  | 28.1 | %
The temporary differences, tax effected, which give rise to the Company’s net deferred tax asset recorded in other assets are as follows for the years indicated (in thousands):
| December 31,
| 2023 |  | 2022
Deferred tax assets: |  |  |
Allowance for losses and reserve for unfunded commitments | $ | 37,656 |  |  | $ | 32,519 |
Deferred compensation | 1,534 |  |  | 1,696 |
Other accrued expenses | 3,899 |  |  | 2,720 |
Additional unfunded status of the supplemental retirement plans | 15,434 |  |  | 16,036 |
Operating lease liability | 8,355 |  |  | 8,575 |
State taxes | 3,346 |  |  | 3,649 |
Share based compensation | 1,050 |  |  | 1,132 |
Nonaccrual interest | 706 |  |  | 643 |
Acquisition cost basis | 12,046 |  |  | 14,640 |
Unrealized loss on securities | 68,535 |  |  | 85,897 |
Tax credits | 852 |  |  | 852 |
Net operating loss carryforwards | 953 |  |  | 2,098 |
Other | 190 |  |  | 120 |
Total deferred tax assets | 154,556 |  |  | 170,577 |
Deferred tax liabilities: |  |  |
Securities income | (777) |  |  | (777) |
Depreciation | (8,364) |  |  | (8,270) |
Right of use asset | (7,726) |  |  | (7,941) |
Funded pension liability | (3,999) |  |  | (4,110) |
Securities accretion | (2,265) |  |  | (1,265) |
Mortgage servicing rights valuation | (1,946) |  |  | (1,976) |
Core deposit intangible | (2,814) |  |  | (4,778) |
Junior subordinated debt | (1,171) |  |  | (1,293) |
Prepaid expenses and other | (1,170) |  |  | (991) |
Total deferred tax liability | (30,232) |  |  | (31,401) |
Net deferred tax asset | $ | 124,324 |  |  | $ | 139,176 |
As part of the merger with FNB Bancorp in 2018 and North Valley Bancorp in 2014, TriCo acquired federal and state net operating loss carryforwards, capital loss carryforwards, and tax credit carryforwards. These tax attribute carryforwards will be subject to provisions of the tax law that limit the use of such losses and credits generated by a company prior to the date certain ownership changes occur. The amount of the Company’s net operating loss carryforwards that are subject to these limitations as of December 31, 2023 were approximately $2.7 million for federal and $4.8 million for California. The amount of the Company’s tax credits that would be subject to these limitations as of December 31, 2023 are $0.3 million and $0.6 million for federal and California, respectively. Due to the limitation, a significant portion of the state tax credits will expire regardless of whether the Company generates future taxable income. As such, the Company has recorded the future benefit of these tax credits on the books at the value which is more likely than not to be realized. These tax loss and tax credit carryforwards expire at various dates through 2032. The Company believes that a valuation allowance is not needed to reduce the deferred tax assets as it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets, including the tax attribute carryforwards acquired as part of past mergers. Disclosure of unrecognized tax benefits at December 31, 2023 and 2022 were not considered significant for disclosure purposes. Management does not expect the unrecognized tax benefit will materially change in the next 12 months. During the years ended December 31, 2023 and December 31, 2022 the Company did not recognize any significant amounts related to interest and penalties associated with taxes. The Company files income tax returns in the U.S. federal jurisdiction, and California. With few exceptions, the Company is no longer subject to U.S. federal and state/local income tax examinations by tax authorities for years before 2020 and 2019, respectively.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration