FT Markets Data
Trico Bancshares

TriCo Bancshares Reports Second Quarter 2025 Net Income of $27.5 Million, Diluted EPS of $0.84 2Q25

2Q25 Financial Highlights

  • Net income was $27.5 million or $0.84 per diluted share as compared to $26.4 million or $0.80 per diluted share in the trailing quarter
  • Net interest income (FTE) was $86.8 million, an increase of $4.0 million or 4.82% over the trailing quarter; net interest margin (FTE) was 3.88% in the recent quarter, an increase of 15 basis points over 3.73% in the trailing quarter
  • Loan balances increased $138.2 million or 8.1% (annualized) from the trailing quarter and increased $216.5 million or 3.2% from the same quarter of the prior year
  • Deposit balances increased $170.5 million or 8.3% (annualized) from the trailing quarter and increased $325.6 million or 4.0% from the same quarter of the prior year
  • Average yield on earning assets was 5.21%, an increase of 6 basis points over the 5.15% in the trailing quarter; average yield on loans was 5.76%, an increase of 5 basis points over the 5.71% in the trailing quarter
  • Non-interest bearing deposits averaged 30.6% of total deposits during the quarter
  • The average cost of total deposits was 1.37%, a decrease of 6 basis points as compared to 1.43% in the trailing quarter, and a decrease of 8 basis points from 1.45% in the same quarter of the prior year

CHICO, Calif.--(BUSINESS WIRE)--Jul. 24, 2025-- TriCo Bancshares (NASDAQ: TCBK):

Executive Commentary:

“Growth was certainly the highlight of the quarter with new and expanded relationships being adding for both loans and deposits. We expect this balance sheet growth to further drive the expansion of net interest income through the remainder of 2025. Our credit quality remains strong, and we remain confident that our overall portfolio will continue to perform consistent with our historically high standards,” said Rick Smith, President and CEO.

Peter Wiese, EVP and CFO added, “Our net interest margin outlook remains stable with continued earning asset yield and funding cost improvements leading to additional net interest income growth. While personnel cost increases during the quarter were largely the result of increased production volumes, the Company's overall efficiency ratio declined and we remain focused on continued improvement in operating leverage.”

Selected Financial Highlights

  • For the quarter ended June 30, 2025, the Company’s return on average assets was 1.13%, while the return on average equity was 8.68%; for the trailing quarter ended March 31, 2025, the Company’s return on average assets was 1.09%, while the return on average equity was 8.54%
  • Diluted earnings per share were $0.84 for the second quarter of 2025, compared to $0.80 for the trailing quarter and $0.87 during the second quarter of 2024
  • The loan to deposit ratio was 83.08% as of June 30, 2025, as compared to 83.13% for the trailing quarter end
  • The efficiency ratio was 59.00% for the quarter ended June 30, 2025, as compared to 60.42% for the trailing quarter
  • The provision for credit losses was approximately $4.7 million during the quarter ended June 30, 2025, as compared to $3.7 million during the trailing quarter end. The change was attributed to an increase in required reserves totaling $2.8 million on individually evaluated loans and an increase of $1.7 million general reserves, which was primary attributed to loan growth
  • The allowance for credit losses (ACL) to total loans was 1.79% as of June 30, 2025, compared to 1.88% as of the trailing quarter end, and 1.83% as of June 30, 2024. Non-performing assets to total assets were 0.68% on June 30, 2025, as compared to 0.59% as of March 31, 2025, and 0.36% at June 30, 2024. At June 30, 2025, the ACL represented 192% of non-performing loans

The financial results reported in this document are preliminary and unaudited. Final financial results and other disclosures will be reported on Form 10-Q for the period ended June 30, 2025, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

Operating Results and Performance Ratios

 

Three months ended

 

 

 

 

 

June 30,

 

March 31,

 

 

 

 

(dollars and shares in thousands, except per share data)

 

2025

 

 

 

2025

 

 

$ Change

 

% Change

Net interest income

$

86,519

 

 

$

82,542

 

 

$

3,977

 

 

4.8

%

Provision for credit losses

 

(4,665

)

 

 

(3,728

)

 

 

(937

)

 

25.1

%

Noninterest income

 

17,090

 

 

 

16,073

 

 

 

1,017

 

 

6.3

%

Noninterest expense

 

(61,131

)

 

 

(59,585

)

 

 

(1,546

)

 

2.6

%

Provision for income taxes

 

(10,271

)

 

 

(8,939

)

 

 

(1,332

)

 

14.9

%

Net income

$

27,542

 

 

$

26,363

 

 

$

1,179

 

 

4.5

%

Diluted earnings per share

$

0.84

 

 

$

0.80

 

 

$

0.04

 

 

5.0

%

Dividends per share

$

0.33

 

 

$

0.33

 

 

$

—

 

 

—

%

Average common shares

 

32,757

 

 

 

32,953

 

 

 

(196

)

 

(0.6

)%

Average diluted common shares

 

32,936

 

 

 

33,129

 

 

 

(193

)

 

(0.6

)%

Return on average total assets

 

1.13

%

 

 

1.09

%

 

 

 

 

Return on average equity

 

8.68

%

 

 

8.54

%

 

 

 

 

Efficiency ratio

 

59.00

%

 

 

60.42

%

 

 

 

 

 

Three months ended
June 30,

 

 

 

 

(dollars and shares in thousands, except per share data)

 

2025

 

 

 

2024

 

 

$ Change

 

% Change

Net interest income

$

86,519

 

 

$

81,997

 

 

$

4,522

 

 

5.5

%

Provision for credit losses

 

(4,665

)

 

 

(405

)

 

 

(4,260

)

 

1,051.9

%

Noninterest income

 

17,090

 

 

 

15,866

 

 

 

1,224

 

 

7.7

%

Noninterest expense

 

(61,131

)

 

 

(58,339

)

 

 

(2,792

)

 

4.8

%

Provision for income taxes

 

(10,271

)

 

 

(10,085

)

 

 

(186

)

 

1.8

%

Net income

$

27,542

 

 

$

29,034

 

 

$

(1,492

)

 

(5.1

)%

Diluted earnings per share

$

0.84

 

 

$

0.87

 

 

$

(0.03

)

 

(3.4

)%

Dividends per share

$

0.33

 

 

$

0.33

 

 

$

—

 

 

—

%

Average common shares

 

32,757

 

 

 

33,121

 

 

 

(364

)

 

(1.1

)%

Average diluted common shares

 

32,936

 

 

 

33,244

 

 

 

(308

)

 

(0.9

)%

Return on average total assets

 

1.13

%

 

 

1.19

%

 

 

 

 

Return on average equity

 

8.68

%

 

 

9.99

%

 

 

 

 

Efficiency ratio

 

59.00

%

 

 

59.61

%

 

 

 

 

 

Six months ended
June 30,

 

 

(dollars and shares in thousands)

 

2025

 

 

 

2024

 

 

$ Change

 

% Change

Net interest income

$

169,061

 

 

$

164,733

 

 

$

4,328

 

 

2.6

%

Provision for credit losses

 

(8,393

)

 

 

(4,710

)

 

 

(3,683

)

 

78.2

%

Noninterest income

 

33,163

 

 

 

31,637

 

 

 

1,526

 

 

4.8

%

Noninterest expense

 

(120,716

)

 

 

(114,843

)

 

 

(5,873

)

 

5.1

%

Provision for income taxes

 

(19,210

)

 

 

(20,034

)

 

 

824

 

 

(4.1

)%

Net income

$

53,905

 

 

$

56,783

 

 

$

(2,878

)

 

(5.1

)%

Diluted earnings per share

$

1.63

 

 

$

1.70

 

 

$

(0.07

)

 

(4.1

)%

Dividends per share

$

0.66

 

 

$

0.66

 

 

$

—

 

 

—

%

Average common shares

 

32,854

 

 

 

33,183

 

 

 

(329

)

 

(1.0

)%

Average diluted common shares

 

33,033

 

 

 

33,306

 

 

 

(273

)

 

(0.8

)%

Return on average total assets

 

1.11

%

 

 

1.16

%

 

 

 

 

Return on average equity

 

8.61

%

 

 

9.74

%

 

 

 

 

Efficiency ratio

 

59.69

%

 

 

58.48

%

 

 

 

 

Balance Sheet Data

Total loans outstanding were $7.0 billion as of June 30, 2025, an increase of $216.5 million or 3.2% over June 30, 2024, and an increase of $138.2 million or 8.1% annualized as compared to the trailing quarter ended March 31, 2025. Investments decreased by $42.2 million and $149.1 million for the three and twelve month periods ended June 30, 2025, respectively, and ended the quarter with a balance of $1.94 billion or 19.5% of total assets. Quarterly average earning assets to quarterly total average assets was 91.8% on June 30, 2025, compared to 92.0% at June 30, 2024. The loan-to-deposit ratio was 83.1% on June 30, 2025, as compared to 83.8% at June 30, 2024. The Company did not utilize brokered deposits during 2025 or 2024 and continues to rely on organic deposit customers to fund cash flow timing differences.

Total shareholders' equity increased by $11.3 million during the quarter ended June 30, 2025, as net income of $27.5 million and a $9.0 million decrease in accumulated other comprehensive losses were partially offset by $10.7 million in cash dividends on common stock and $14.8 million in share repurchase activity. As a result, the Company’s book value increased to $38.92 per share at June 30, 2025, compared to $38.17 at March 31, 2025. The Company’s tangible book value per share, a non-GAAP measure, calculated by subtracting goodwill and other intangible assets from total shareholders’ equity and dividing that sum by total shares outstanding, was $29.40 per share at June 30, 2025, as compared to $28.73 at March 31, 2025. Changes in the fair value of available-for-sale investment securities, net of deferred taxes, continue to create moderate levels of volatility in tangible book value per share.

Trailing Quarter Balance Sheet Change

Ending balances

June 30,
2025

 

March 31,
2025

 

 

 

Annualized

% Change

(dollars in thousands)

 

 

$ Change

Total assets

$

9,923,983

 

$

9,819,599

 

$

104,384

 

 

4.3

%

Total loans

 

6,958,993

 

 

 

6,820,774

 

 

 

138,219

 

 

8.1

 

Total investments

 

1,936,954

 

 

 

1,979,116

 

 

 

(42,162

)

 

(8.5

)

Total deposits

 

8,375,809

 

 

 

8,205,332

 

 

 

170,477

 

 

8.3

 

Total other borrowings

 

17,788

 

 

 

91,706

 

 

 

(73,918

)

 

(322.4

)

Loans outstanding increased by $138.2 million or 8.1% on an annualized basis during the quarter ended June 30, 2025. During the quarter, loan originations/draws totaled approximately $457.7 million while payoffs/repayments of loans totaled $329.3 million, which compares to originations/draws and payoffs/repayments during the trailing quarter ended of $357.5 million and $321.3 million, respectively. Origination volume was elevated relative to recent quarters as interest rates have contracted from the highs experienced in early 2025, and the macro-economic outlook continues to improve for borrowers following the passage of tax and spending legislation that is expected to promote continued economic expansion, in addition to progress toward finalizing tariff policies with our largest trade partners. The activity within loan payoffs/repayments remains spread amongst numerous borrowers, regions and loan types.

Investment security balances decreased $42.2 million or 8.5% on an annualized basis during the quarter as a result of net prepayments/maturities of $64.5 million, partially offset by net increases in the market value of securities of $12.8 million and purchases of $10.2 million. Investment security purchases were comprised of fixed rate agency mortgage-backed securities. While management intends to primarily utilize cash flows from the investment security portfolio and organic deposit growth to support loan growth, excess liquidity will be utilized for purchases of investment securities to support net interest income growth and net interest margin expansion.

Deposit balances increased by $170.5 million or 8.3% annualized during the period, primarily due to increases in demand and savings deposit accounts. Other borrowings decreased by $73.9 million or 322.4% during the quarter following the repayment of all short-term FHLB advances.

Average Trailing Quarter Balance Sheet Change

Quarterly average balances for the period ended

June 30,
2025

 

March 31,
2025

 

 

 

Annualized

% Change

(dollars in thousands)

 

 

$ Change

 

Total assets

$

9,778,834

 

$

9,808,216

 

$

(29,382

)

 

(1.2

)%

Total loans

 

6,878,186

 

 

 

6,776,188

 

 

 

101,998

 

 

6.0

 

Total investments

 

1,951,390

 

 

 

2,024,668

 

 

 

(73,278

)

 

(14.5

)

Total deposits

 

8,222,982

 

 

 

8,195,793

 

 

 

27,189

 

 

1.3

 

Total other borrowings

 

22,707

 

 

 

89,465

 

 

 

(66,758

)

 

(298.5

)

Year Over Year Balance Sheet Change

Ending balances

As of June 30,

 

 

 

% Change

(dollars in thousands)

 

2025

 

 

 

2024

 

 

$ Change

 

Total assets

$

9,923,983

 

$

9,741,399

 

$

182,584

 

 

1.9

%

Total loans

 

6,958,993

 

 

 

6,742,526

 

 

 

216,467

 

 

3.2

 

Total investments

 

1,936,954

 

 

 

2,086,090

 

 

 

(149,136

)

 

(7.1

)

Total deposits

 

8,375,809

 

 

 

8,050,230

 

 

 

325,579

 

 

4.0

 

Total other borrowings

 

17,788

 

 

 

247,773

 

 

 

(229,985

)

 

(92.8

)

Net Interest Income and Net Interest Margin

The Company's yield on loans for the second quarter was 5.76%, an increase of 5 basis points from 5.71% as of the trailing quarter end and a decrease of 6 basis points as compared to 5.82% for the period ended June 30, 2024. The tax equivalent yield on the Company's investment security portfolio was 3.30% for the quarter ended June 30, 2025, a decrease of 12 basis points from the 3.42% for the three months ended June 30, 2024, and 9 basis points from the trailing quarter end of 3.39%. The cost of total interest-bearing deposits decreased by 17 basis points, while the costs of total interest-bearing liabilities decreased by 34 basis points, respectively, between the three-month periods ended June 30, 2025 and 2024. As compared to the trailing quarter, interest-bearing deposits declined by 9 basis points and interest-bearing liabilities declined by 13 basis points. There were no changes to short-term rates by the FOMC during the current quarter, following 100 basis points in cuts during the fourth quarter in 2024. The fully tax-equivalent net interest income and net interest margin was $86.8 million and 3.88%, respectively, for the quarter ended June 30, 2025, and was $82.8 million and 3.73%, respectively, for the quarter ended March 31, 2025. More specifically, the net interest rate spread improved by 19 basis points to 3.16% for the quarter ended June 30, 2025, as compared to the trailing quarter, while the net interest margin increased by 15 basis points to 3.88% over the same period.

The Company continues to manage its cost of deposits through the use of various pricing and product mix strategies. As of June 30, 2025, March 31, 2025, and June 30, 2024, deposits priced utilizing these customized strategies totaled $1.0 billion, $0.9 billion, and $1.4 billion and carried weighted average rates of 3.38%, 3.43% and 3.80%, respectively.

 

Three months ended

 

 

 

 

 

June 30,

 

March 31,

 

 

 

 

(dollars in thousands)

 

2025

 

 

 

2025

 

 

Change

 

% Change

Interest income

$

116,361

 

 

$

114,077

 

 

$

2,284

 

 

2.0

%

Interest expense

 

(29,842

)

 

 

(31,535

)

 

 

1,693

 

 

(5.4

)%

Fully tax-equivalent adjustment (FTE) (1)

 

264

 

 

 

265

 

 

 

(1

)

 

(0.4

)%

Net interest income (FTE)

$

86,783

 

 

$

82,807

 

 

$

3,976

 

 

4.8

%

Net interest margin (FTE)

 

3.88

%

 

 

3.73

%

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans discount accretion, net:

 

 

 

 

 

 

 

Amount (included in interest income)

$

1,247

 

 

$

1,995

 

 

$

(748

)

 

(37.5

)%

Net interest margin less effect of acquired loan discount accretion(1)

 

3.82

%

 

 

3.64

%

 

 

0.18

%

 

 

 

Three months ended
June 30,

 

 

 

 

(dollars in thousands)

 

2025

 

 

 

2024

 

 

Change

 

% Change

Interest income

$

116,361

 

 

$

117,032

 

 

$

(671

)

 

(0.6

)%

Interest expense

 

(29,842

)

 

 

(35,035

)

 

 

5,193

 

 

(14.8

)%

Fully tax-equivalent adjustment (FTE) (1)

 

264

 

 

 

275

 

 

 

(11

)

 

(4.0

)%

Net interest income (FTE)

$

86,783

 

 

$

82,272

 

 

$

4,511

 

 

5.5

%

Net interest margin (FTE)

 

3.88

%

 

 

3.68

%

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans discount accretion, net:

 

 

 

 

 

 

 

Amount (included in interest income)

$

1,247

 

 

$

850

 

 

$

397

 

 

46.7

%

Net interest margin less effect of acquired loan discount accretion(1)

 

3.82

%

 

 

3.64

%

 

 

0.18

%

 

 

 

Six months ended
June 30,

 

 

 

 

(dollars in thousands)

 

2025

 

 

 

2024

 

 

Change

 

% Change

Interest income

$

230,438

 

 

$

232,449

 

 

$

(2,011

)

 

(0.9

)%

Interest expense

 

(61,377

)

 

 

(67,716

)

 

 

6,339

 

 

(9.4

)%

Fully tax-equivalent adjustment (FTE) (1)

 

529

 

 

 

550

 

 

 

(21

)

 

(3.8

)%

Net interest income (FTE)

$

169,590

 

 

$

165,283

 

 

$

4,307

 

 

2.6

%

Net interest margin (FTE)

 

3.81

%

 

 

3.68

%

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans discount accretion, net:

 

 

 

 

 

 

 

Amount (included in interest income)

$

3,242

 

 

$

2,182

 

 

$

1,060

 

 

48.6

%

Net interest margin less effect of acquired loan discount accretion(1)

 

3.73

%

 

 

3.63

%

 

 

0.10

%

 

 

(1)

Certain information included herein is presented on a fully tax-equivalent (FTE) basis and / or to present additional financial details which may be desired by users of this financial information. The Company believes the use of these non-generally accepted accounting principles (non-GAAP) measures provide additional clarity in assessing its results, and the presentation of these measures are common practice within the banking industry. See additional information related to non-GAAP measures at the back of this document.

Analysis Of Change In Net Interest Margin On Earning Assets

 

Three months ended

 

Three months ended

 

Three months ended

 

June 30, 2025

 

March 31, 2025

 

June 30, 2024

(dollars in thousands)

Average

Balance

 

Income/

Expense

 

Yield/

Rate

 

Average

Balance

 

Income/

Expense

 

Yield/

Rate

 

Average

Balance

 

Income/

Expense

 

Yield/

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

6,878,186

 

$

98,695

 

5.76

%

 

$

6,776,188

 

$

95,378

 

5.71

%

 

$

6,792,303

 

$

98,229

 

5.82

%

Investments-taxable

 

1,818,814

 

 

 

14,921

 

 

3.29

%

 

 

1,891,280

 

 

 

15,752

 

 

3.38

%

 

 

2,003,124

 

 

 

17,004

 

 

3.41

%

Investments-nontaxable (1)

 

132,576

 

 

 

1,143

 

 

3.46

%

 

 

133,388

 

 

 

1,149

 

 

3.49

%

 

 

138,167

 

 

 

1,190

 

 

3.46

%

Total investments

 

1,951,390

 

 

 

16,064

 

 

3.30

%

 

 

2,024,668

 

 

 

16,901

 

 

3.39

%

 

 

2,141,291

 

 

 

18,194

 

 

3.42

%

Cash at Fed Reserve and other banks

 

144,383

 

 

 

1,866

 

 

5.18

%

 

 

206,591

 

 

 

2,063

 

 

4.05

%

 

 

68,080

 

 

 

884

 

 

5.22

%

Total earning assets

 

8,973,959

 

 

 

116,625

 

 

5.21

%

 

 

9,007,447

 

 

 

114,342

 

 

5.15

%

 

 

9,001,674

 

 

 

117,307

 

 

5.24

%

Other assets, net

 

804,875

 

 

 

 

 

 

 

800,769

 

 

 

 

 

 

 

780,554

 

 

 

 

 

Total assets

$

9,778,834

 

 

 

 

 

 

$

9,808,216

 

 

 

 

 

 

$

9,782,228

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

1,804,856

 

 

$

6,076

 

 

1.35

%

 

$

1,830,315

 

 

$

6,221

 

 

1.38

%

 

$

1,769,370

 

 

$

6,215

 

 

1.41

%

Savings deposits

 

2,799,470

 

 

 

12,246

 

 

1.75

%

 

 

2,730,262

 

 

 

12,198

 

 

1.81

%

 

 

2,673,272

 

 

 

12,260

 

 

1.84

%

Time deposits

 

1,102,025

 

 

 

9,716

 

 

3.54

%

 

 

1,120,843

 

 

 

10,446

 

 

3.78

%

 

 

1,016,190

 

 

 

10,546

 

 

4.17

%

Total interest-bearing deposits

 

5,706,351

 

 

 

28,038

 

 

1.97

%

 

 

5,681,420

 

 

 

28,865

 

 

2.06

%

 

 

5,458,832

 

 

 

29,021

 

 

2.14

%

Other borrowings

 

22,707

 

 

 

92

 

 

1.63

%

 

 

89,465

 

 

 

969

 

 

4.39

%

 

 

325,604

 

 

 

4,118

 

 

5.09

%

Junior subordinated debt

 

101,236

 

 

 

1,712

 

 

6.78

%

 

 

101,201

 

 

 

1,701

 

 

6.82

%

 

 

101,128

 

 

 

1,896

 

 

7.54

%

Total interest-bearing liabilities

 

5,830,294

 

 

 

29,842

 

 

2.05

%

 

 

5,872,086

 

 

 

31,535

 

 

2.18

%

 

 

5,885,564

 

 

 

35,035

 

 

2.39

%

Noninterest-bearing deposits

 

2,516,631

 

 

 

 

 

 

 

2,514,373

 

 

 

 

 

 

 

2,565,609

 

 

 

 

 

Other liabilities

 

158,817

 

 

 

 

 

 

 

169,763

 

 

 

 

 

 

 

161,731

 

 

 

 

 

Shareholders’ equity

 

1,273,092

 

 

 

 

 

 

 

1,251,994

 

 

 

 

 

 

 

1,169,324

 

 

 

 

 

Total liabilities and shareholders’ equity

$

9,778,834

 

 

 

 

 

 

$

9,808,216

 

 

 

 

 

 

$

9,782,228

 

 

 

 

 

Net interest rate spread (1) (2)

 

 

 

 

3.16

%

 

 

 

 

 

2.97

%

 

 

 

 

 

2.85

%

Net interest income and margin (1) (3)

 

 

$

86,783

 

 

3.88

%

 

 

 

$

82,807

 

 

3.73

%

 

 

 

$

82,272

 

 

3.68

%

(1)

 

Fully taxable equivalent (FTE). All yields and rates are calculated using specific day counts for the period and year as applicable.

(2)

 

Net interest spread is the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(3)

 

Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets.

Net interest income (FTE) during the three months ended June 30, 2025, increased $4.0 million or 4.8% to $86.8 million compared to $82.8 million during the three months ended March 31, 2025. Net interest margin totaled 3.88% for the three months ended June 30, 2025, an increase of 15 basis points from the trailing quarter. The increase in net interest income is primarily attributed to a $2.3 million improvement in interest income on earning assets, led by elevated loan income totaling $3.3 million, primarily related to the benefit from new originations and fee income from increased refinance activity. The net interest margin was further enhanced by reductions in interest expense on interest-bearing liabilities of $1.7 million as compared to the trailing quarter, primarily attributed to a decrease of $0.8 million in deposit interest expense and $0.9 million in other borrowings expense.

As compared to the same quarter in the prior year, average loan yields decreased 6 basis points from 5.82% during the three months ended June 30, 2024, to 5.76% during the three months ended June 30, 2025. The accretion of discounts from acquired loans added 8 basis points and 5 basis points to loan yields during the quarters ended June 30, 2025 and June 30, 2024, respectively. The cost of interest-bearing deposits decreased by 17 basis points between the quarter ended June 30, 2025, and the same quarter of the prior year. In addition, the average balance of noninterest-bearing deposits decreased by $49.0 million from the three-month average for the period ended June 30, 2024, amidst a continued migration of customer funds to interest-bearing products.

For the quarter ended June 30, 2025, the ratio of average total noninterest-bearing deposits to total average deposits was 30.6%, as compared to 30.7% and 32.0% for the quarters ended March 31, 2025 and June 30, 2024, respectively.

Prior to September 30, 2025, management anticipates providing notice of and repayment to the holders of the North Valley Trust II, III and IV as well as well as the VRB Subordinated debt issued by TriCo, which had a total face value of $57.7 million, recorded book value of $60.0 million, and weighted average rate of 6.54% as of June 30, 2025.

 

Six months ended June 30, 2025

 

Six months ended June 30, 2024

(dollars in thousands)

Average

Balance

 

Income/

Expense

 

Yield/

Rate

 

Average

Balance

 

Income/

Expense

 

Yield/

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

Loans

$

6,827,469

 

$

194,073

 

5.73

%

 

$

6,789,072

 

$

194,713

 

5.77

%

Investments-taxable

 

1,851,439

 

 

 

30,673

 

 

3.34

%

 

 

2,065,412

 

 

 

34,833

 

 

3.39

%

Investments-nontaxable (1)

 

132,980

 

 

 

2,292

 

 

3.48

%

 

 

138,534

 

 

 

2,382

 

 

3.46

%

Total investments

 

1,984,419

 

 

 

32,965

 

 

3.35

%

 

 

2,203,946

 

 

 

37,215

 

 

3.40

%

Cash at Fed Reserve and other banks

 

175,315

 

 

 

3,929

 

 

4.52

%

 

 

41,229

 

 

 

1,071

 

 

5.22

%

Total earning assets

 

8,987,203

 

 

 

230,967

 

 

5.18

%

 

 

9,034,247

 

 

 

232,999

 

 

5.19

%

Other assets, net

 

806,241

 

 

 

 

 

 

 

784,765

 

 

 

 

 

Total assets

$

9,793,444

 

 

 

 

 

 

$

9,819,012

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

1,817,515

 

 

$

12,297

 

 

1.36

%

 

$

1,740,107

 

 

$

11,162

 

 

1.29

%

Savings deposits

 

2,765,057

 

 

 

24,444

 

 

1.78

%

 

 

2,662,595

 

 

 

23,159

 

 

1.75

%

Time deposits

 

1,111,382

 

 

 

20,162

 

 

3.66

%

 

 

914,042

 

 

 

18,229

 

 

4.01

%

Total interest-bearing deposits

 

5,693,954

 

 

 

56,903

 

 

2.02

%

 

 

5,316,744

 

 

 

52,550

 

 

1.99

%

Other borrowings

 

55,902

 

 

 

1,061

 

 

3.83

%

 

 

455,150

 

 

 

11,496

 

 

5.08

%

Junior subordinated debt

 

101,219

 

 

 

3,413

 

 

6.80

%

 

 

101,117

 

 

 

3,670

 

 

7.30

%

Total interest-bearing liabilities

 

5,851,075

 

 

 

61,377

 

 

2.12

%

 

 

5,873,011

 

 

 

67,716

 

 

2.32

%

Noninterest-bearing deposits

 

2,515,508

 

 

 

 

 

 

 

2,605,999

 

 

 

 

 

Other liabilities

 

164,259

 

 

 

 

 

 

 

168,044

 

 

 

 

 

Shareholders’ equity

 

1,262,602

 

 

 

 

 

 

 

1,171,958

 

 

 

 

 

Total liabilities and shareholders’ equity

$

9,793,444

 

 

 

 

 

 

$

9,819,012

 

 

 

 

 

Net interest rate spread (1) (2)

 

 

 

 

3.06

%

 

 

 

 

 

2.87

%

Net interest income and margin (1) (3)

 

 

$

169,590

 

 

3.81

%

 

 

 

$

165,283

 

 

3.68

%

(1)

 

Fully taxable equivalent (FTE). All yields and rates are calculated using specific day counts for the period and year as applicable.

(2)

 

Net interest spread is the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(3)

 

Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets.

Interest Rates and Earning Asset Composition

As of June 30, 2025, the Company's loan portfolio consisted of approximately $7.0 billion in outstanding principal with a weighted average coupon rate of 5.57%. During the three-month periods ending June 30, 2025, March 31, 2025, and June 30, 2024, the weighted average coupon on loan production in the quarter was 6.87%, 6.96% and 7.98%, respectively. Included in the June 30, 2025 total loans balance are adjustable rate loans totaling $4.5 billion, of which $0.9 billion are considered floating based on the Wall Street Prime index. In addition, the Company holds certain investment securities with fair values totaling $282.8 million which are subject to repricing on not less than a quarterly basis.

Asset Quality and Credit Loss Provisioning

During the three months ended June 30, 2025, the Company recorded a provision for credit losses of $4.7 million, as compared to $3.7 million during the trailing quarter, and $0.4 million during the second quarter of 2024.

 

Three months ended

 

Six months ended

(dollars in thousands)

June 30,
2025

 

March 31,
2025

 

June 30,
2024

 

June 30,
2025

 

June 30,
2024

Addition to allowance for credit losses

$

4,525

 

$

2,663

 

$

335

 

$

7,188

 

$

4,350

Addition to reserve for unfunded loan commitments

 

140

 

 

 

1,065

 

 

 

70

 

 

 

1,205

 

 

 

360

 

Total provision for credit losses

$

4,665

 

 

$

3,728

 

 

$

405

 

 

$

8,393

 

 

$

4,710

 

 

Three Months Ended June 30,

 

Six months ended June 30,

(dollars in thousands)

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Balance, beginning of period

$

128,423

 

 

$

124,394

 

 

$

125,366

 

 

$

121,522

 

Provision for credit losses

 

4,525

 

 

 

335

 

 

 

7,188

 

 

 

4,350

 

Loans charged-off

 

(8,595

)

 

 

(1,610

)

 

 

(8,969

)

 

 

(2,885

)

Recoveries of previously charged-off loans

 

102

 

 

 

398

 

 

 

870

 

 

 

530

 

Balance, end of period

$

124,455

 

 

$

123,517

 

 

$

124,455

 

 

$

123,517

 

The allowance for credit losses (ACL) was $124.5 million or 1.79% of total loans as of June 30, 2025. The provision for credit losses on loans of $4.5 million recorded during the current quarter resulted from a net increase of $2.9 million in reserves on individually evaluated loans or loan relationships, in addition to a net increase of $1.6 million in general reserves. The charge-offs incurred during the quarter ended June 30, 2025, were primarily related to non-performing relationships which had been fully reserved for by Management on an individual basis in previous quarters.

The $2.9 million increase in individually evaluated reserves was largely attributed to changes in observable market valuations associated with agricultural real estate despite what appears to be a stable water supply and improving commodity prices for the crops associated with collateral for these loans. Management believes the provisioning for this individually analyzed relationship is sufficient relative to expected future losses, if any.

The $1.6 million recorded for general reserves is primarily attributed to net loan growth for the quarter of approximately $138.2 million. Additionally, Management notes that economic indicators through the end of the current quarter, as well as actual and forecasted trends including, but not limited to, unemployment, gross domestic product, and corporate borrowing rates continued to evidence stability and were supportive of general economic expansion, and generally consistent with the trailing period ended March 31, 2025, which is aligned with the Company's direct experiences with borrowers. Steepening of the yield curve or actions by the Federal Reserve to cut rates during 2025 and beyond may help further improve this outlook overall, but the uncertainty associated with the extent and timing of these potential reductions has inhibited a material change to monetary policy assumptions. Furthermore, geopolitical policy risks remain elevated, which may lead to further negative effects on domestic economic outcomes. The uncertainties related to the nature, duration and potential economic impact of proposed tariffs, while modestly improved since the period ended March 31, 2025, continue to present challenges in correlating potential improvement of credit risks within the Company's loan portfolio. Therefore, in conjunction with most economists' belief that tariffs may have a generally unfavorable impact on the economy as a whole, management continues to believe that certain credit weaknesses are present in the overall economy and that it is appropriate to maintain a reserve level that incorporates such risk factors.

(dollars in thousands)

As of June 30, 2025

% of Loans Outstanding

 

As of March 31, 2025

% of Loans Outstanding

 

As of June 30, 2024

% of Loans Outstanding

Risk Rating:

 

 

 

 

 

 

 

 

Pass

$

6,751,005

 

97.01

%

 

$

6,582,345

 

96.50

%

 

$

6,536,223

 

96.94

%

Special Mention

 

73,215

 

1.05

%

 

 

106,243

 

1.56

%

 

 

101,324

 

1.50

%

Substandard

 

134,773

 

1.94

%

 

 

132,186

 

1.94

%

 

 

104,979

 

1.56

%

Total

$

6,958,993

 

100.00

%

 

$

6,820,774

 

100.00

%

 

$

6,742,526

 

100.00

%

 

 

 

 

 

 

 

 

 

Classified loans to total loans

 

1.94

%

 

 

 

1.94

%

 

 

 

1.56

%

 

Loans past due 30+ days to total loans

 

0.62

%

 

 

 

0.66

%

 

 

 

0.45

%

 

ACL to non-performing loans

 

192.11

%

 

 

 

234.12

%

 

 

 

376.87

%

 

The ratio of classified loans to total loans of 1.94% as of June 30, 2025, was unchanged from March 31, 2025, and increased 38 basis points from the comparative quarter ended 2024. The change in classified loans outstanding as compared to the trailing quarter represented an increase of $2.6 million. While the increase is concentrated within commercial real estate farmland, the corresponding loans are current as of the reporting date with no history of delinquency.

Loans past due 30 days or more decreased by $1.8 million during the quarter ended June 30, 2025, to $43.0 million, as compared to $44.8 million at March 31, 2025. The majority of loans identified as past due are well-secured by collateral, and approximately $12.4 million are less than 90 days delinquent.

Non-performing loans increased by $9.9 million during the quarter ended June 30, 2025 to $64.8 million as compared to $54.9 million at March 31, 2025. As noted above, this increase is concentrated within commercial real estate farmland and management continues to proactively work with these borrowers to identify actionable and appropriate resolution strategies which are customary for the industries. We anticipate that these actionable strategies will further benefit from the continued improvement in agricultural commodity prices, stable water supply, and growing crop demand. Of the $64.8 million loans designated as non-performing as of June 30, 2025, approximately $27.8 million are current or less than 30 days past due with respect to payments required under their existing loan agreements.

Management continues to proactively assess the repayment capacity of borrowers that will be subject to rate resets in the near term. To date this analysis as well as management's observations of loans that have experienced a rate reset, have resulted in an insignificant need to provide concessions to borrowers.

As of June 30, 2025, other real estate owned consisted of 9 properties with a carrying value of approximately $2.7 million, consistent with March 31, 2025. Non-performing assets of $67.5 million at June 30, 2025, represented 0.68% of total assets, a change from $57.5 million or 0.59% and $35.3 million or 0.36% as of March 31, 2025 and June 30, 2024, respectively.

Allocation of Credit Loss Reserves by Loan Type

 

 

As of June 30, 2025

 

As of March 31, 2025

 

As of June 30, 2024

(dollars in thousands)

Amount

 

% of Loans

Outstanding

 

Amount

 

% of Loans

Outstanding

 

Amount

 

% of Loans

Outstanding

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

CRE - Non-Owner Occupied

$

40,921

 

1.68

%

 

$

39,670

 

1.68

%

 

$

37,155

 

1.66

%

CRE - Owner Occupied

 

11,578

 

 

1.16

%

 

 

12,169

 

 

1.23

%

 

 

15,873

 

 

1.67

%

Multifamily

 

15,097

 

 

1.47

%

 

 

15,604

 

 

1.52

%

 

 

15,973

 

 

1.60

%

Farmland

 

6,888

 

 

2.60

%

 

 

4,737

 

 

1.81

%

 

 

4,031

 

 

1.52

%

Total commercial real estate loans

 

74,484

 

 

1.57

%

 

 

72,180

 

 

1.56

%

 

 

73,032

 

 

1.64

%

Consumer:

 

 

 

 

 

 

 

 

 

 

 

SFR 1-4 1st Liens

 

11,135

 

 

1.31

%

 

 

10,996

 

 

1.29

%

 

 

14,604

 

 

1.65

%

SFR HELOCs and Junior Liens

 

12,021

 

 

3.08

%

 

 

11,650

 

 

3.12

%

 

 

10,087

 

 

2.91

%

Other

 

2,162

 

 

4.49

%

 

 

2,893

 

 

5.19

%

 

 

2,983

 

 

4.30

%

Total consumer loans

 

25,318

 

 

1.96

%

 

 

25,539

 

 

1.99

%

 

 

27,674

 

 

2.13

%

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

10,024

 

 

2.14

%

 

 

17,561

 

 

3.84

%

 

 

12,128

 

 

2.21

%

Construction

 

10,995

 

 

3.61

%

 

 

10,346

 

 

3.47

%

 

 

7,466

 

 

2.63

%

Agricultural Production

 

3,609

 

 

2.24

%

 

 

2,768

 

 

1.91

%

 

 

3,180

 

 

2.27

%

Leases

 

25

 

 

0.44

%

 

 

28

 

 

0.44

%

 

 

37

 

 

0.44

%

Allowance for credit losses

 

124,455

 

 

1.79

%

 

 

128,422

 

 

1.88

%

 

 

123,517

 

 

1.83

%

Reserve for unfunded loan commitments

 

7,205

 

 

 

 

 

7,065

 

 

 

 

 

6,210

 

 

 

Total allowance for credit losses

$

131,660

 

 

1.89

%

 

$

135,487

 

 

1.99

%

 

$

129,727

 

 

1.92

%

In addition to the allowance for credit losses above, the Company has acquired various performing loans whose fair value as of the acquisition date was determined to be less than the principal balance owed on those loans. This difference represents the collective discount of credit, interest rate and liquidity measurements, which are expected to be amortized over the life of the loans. As of June 30, 2025, the unamortized discount associated with acquired loans totaled $17.0 million, which, when combined with the total allowance for credit losses above, represents 2.14% of total loans.

Non-interest Income

Three months ended

 

 

 

 

(dollars in thousands)

June 30, 2025

 

March 31, 2025

 

Change

 

% Change

ATM and interchange fees

$

6,590

 

 

$

6,106

 

 

$

484

 

 

7.9

%

Service charges on deposit accounts

 

5,189

 

 

 

4,914

 

 

 

275

 

 

5.6

%

Other service fees

 

1,485

 

 

 

1,359

 

 

 

126

 

 

9.3

%

Mortgage banking service fees

 

438

 

 

 

439

 

 

 

(1

)

 

(0.2

)%

Change in value of mortgage servicing rights

 

(52

)

 

 

(140

)

 

 

88

 

 

(62.9

)%

Total service charges and fees

 

13,650

 

 

 

12,678

 

 

 

972

 

 

7.7

%

Increase in cash value of life insurance

 

842

 

 

 

820

 

 

 

22

 

 

2.7

%

Asset management and commission income

 

1,635

 

 

 

1,488

 

 

 

147

 

 

9.9

%

Gain on sale of loans

 

503

 

 

 

344

 

 

 

159

 

 

46.2

%

Lease brokerage income

 

50

 

 

 

66

 

 

 

(16

)

 

(24.2

)%

Sale of customer checks

 

318

 

 

 

345

 

 

 

(27

)

 

(7.8

)%

(Loss) gain on sale or exchange of investment securities

 

4

 

 

 

(1,146

)

 

 

1,150

 

 

100.3

%

(Loss) gain on marketable equity securities

 

8

 

 

 

39

 

 

 

(31

)

 

(79.5

)%

Other income

 

80

 

 

 

1,439

 

 

 

(1,359

)

 

(94.4

)%

Total other non-interest income

 

3,440

 

 

 

3,395

 

 

 

45

 

 

1.3

%

Total non-interest income

$

17,090

 

 

$

16,073

 

 

$

1,017

 

 

6.3

%

Total non-interest income increased $1.0 million or 6.3% to $17.1 million during the three months ended June 30, 2025, compared to $16.1 million during the quarter ended March 31, 2025. Growth in deposit balances and related transactional activities during the quarter contributed to elevated interchange fees and services charges income, which increased by $0.9 million as compared to the trailing quarter. In the trailing quarter, two significant non-recurring events impacted financials, including $1.2 million in losses related to the sale of investment securities on proceeds of $30.0 million, offset by excess cash flows from death benefit proceeds of $1.2 million recorded within other income.

 

Three months ended June 30,

 

 

 

 

(dollars in thousands)

 

2025

 

 

 

2024

 

 

Change

 

% Change

ATM and interchange fees

$

6,590

 

 

$

6,372

 

 

$

218

 

 

3.4

%

Service charges on deposit accounts

 

5,189

 

 

 

4,847

 

 

 

342

 

 

7.1

%

Other service fees

 

1,485

 

 

 

1,286

 

 

 

199

 

 

15.5

%

Mortgage banking service fees

 

438

 

 

 

438

 

 

 

—

 

 

—

%

Change in value of mortgage servicing rights

 

(52

)

 

 

(147

)

 

 

95

 

 

64.6

%

Total service charges and fees

 

13,650

 

 

 

12,796

 

 

 

854

 

 

6.7

%

Increase in cash value of life insurance

 

842

 

 

 

831

 

 

 

11

 

 

1.3

%

Asset management and commission income

 

1,635

 

 

 

1,359

 

 

 

276

 

 

20.3

%

Gain on sale of loans

 

503

 

 

 

388

 

 

 

115

 

 

29.6

%

Lease brokerage income

 

50

 

 

 

154

 

 

 

(104

)

 

(67.5

)%

Sale of customer checks

 

318

 

 

 

301

 

 

 

17

 

 

5.6

%

(Loss) gain on sale or exchange of investment securities

 

4

 

 

 

(45

)

 

 

49

 

 

108.9

%

(Loss) gain on marketable equity securities

 

8

 

 

 

(121

)

 

 

129

 

 

106.6

%

Other income

 

80

 

 

 

203

 

 

 

(123

)

 

(60.6

)%

Total other non-interest income

 

3,440

 

 

 

3,070

 

 

 

370

 

 

12.1

%

Total non-interest income

$

17,090

 

 

$

15,866

 

 

$

1,224

 

 

7.7

%

Non-interest income increased $1.2 million or 7.7% to $17.1 million during the three months ended June 30, 2025, compared to $15.9 million during the comparative quarter ended June 30, 2024. Elevated activity and volume of assets under management drove an increase of $0.3 million or 20.3% in asset management and commission income for the period ended June 30, 2025 as compared to the same period in 2024. All other notable changes in non-interest income during the current quarter are described above.

 

Six months ended June 30,

 

 

 

 

(dollars in thousands)

 

2025

 

 

 

2024

 

 

Change

 

% Change

ATM and interchange fees

$

12,696

 

 

$

12,541

 

 

$

155

 

 

1.2

%

Service charges on deposit accounts

 

10,103

 

 

 

9,510

 

 

 

593

 

 

6.2

%

Other service fees

 

2,844

 

 

 

2,652

 

 

 

192

 

 

7.2

%

Mortgage banking service fees

 

877

 

 

 

866

 

 

 

11

 

 

1.3

%

Change in value of mortgage servicing rights

 

(192

)

 

 

(136

)

 

 

(56

)

 

(41.2

)%

Total service charges and fees

 

26,328

 

 

 

25,433

 

 

 

895

 

 

3.5

%

Increase in cash value of life insurance

 

1,662

 

 

 

1,634

 

 

 

28

 

 

1.7

%

Asset management and commission income

 

3,123

 

 

 

2,487

 

 

 

636

 

 

25.6

%

Gain on sale of loans

 

847

 

 

 

649

 

 

 

198

 

 

30.5

%

Lease brokerage income

 

116

 

 

 

315

 

 

 

(199

)

 

(63.2

)%

Sale of customer checks

 

663

 

 

 

613

 

 

 

50

 

 

8.2

%

(Loss) gain on sale or exchange of investment securities

 

(1,142

)

 

 

(45

)

 

 

(1,097

)

 

(2,437.8

)%

(Loss) gain on marketable equity securities

 

47

 

 

 

(149

)

 

 

196

 

 

131.5

%

Other income

 

1,519

 

 

 

700

 

 

 

819

 

 

117.0

%

Total other non-interest income

 

6,835

 

 

 

6,204

 

 

 

631

 

 

10.2

%

Total non-interest income

$

33,163

 

 

$

31,637

 

 

$

1,526

 

 

4.8

%

Non-interest income increased $1.5 million or 4.8% to $33.2 million during the six months ended June 30, 2025, compared to $31.6 million during the comparative six months ended June 30, 2024. As noted above, service charges and customer fees are elevated in the 2025 period and resulted in an increase of $0.9 million as compared to the six months ended June 30, 2025. Further, as noted previously, elevated activity within asset management and commission income contributed to overall improvement in total non interest income.

Non-interest Expense

Three months ended

 

 

 

 

(dollars in thousands)

June 30, 2025

 

March 31, 2025

 

Change

 

% Change

Base salaries, net of deferred loan origination costs

$

25,757

 

$

25,401

 

 

$

356

 

 

1.4

%

Incentive compensation

 

5,223

 

 

 

4,038

 

 

 

1,185

 

 

29.3

%

Benefits and other compensation costs

 

7,306

 

 

 

7,416

 

 

 

(110

)

 

(1.5

)%

Total salaries and benefits expense

 

38,286

 

 

 

36,855

 

 

 

1,431

 

 

3.9

%

Occupancy

 

4,200

 

 

 

4,077

 

 

 

123

 

 

3.0

%

Data processing and software

 

4,959

 

 

 

5,058

 

 

 

(99

)

 

(2.0

)%

Equipment

 

1,189

 

 

 

1,284

 

 

 

(95

)

 

(7.4

)%

Intangible amortization

 

483

 

 

 

514

 

 

 

(31

)

 

(6.0

)%

Advertising

 

808

 

 

 

1,204

 

 

 

(396

)

 

(32.9

)%

ATM and POS network charges

 

1,843

 

 

 

1,851

 

 

 

(8

)

 

(0.4

)%

Professional fees

 

1,667

 

 

 

1,518

 

 

 

149

 

 

9.8

%

Telecommunications

 

513

 

 

 

488

 

 

 

25

 

 

5.1

%

Regulatory assessments and insurance

 

1,297

 

 

 

1,283

 

 

 

14

 

 

1.1

%

Postage

 

385

 

 

 

320

 

 

 

65

 

 

20.3

%

Operational loss

 

270

 

 

 

424

 

 

 

(154

)

 

(36.3

)%

Courier service

 

544

 

 

 

488

 

 

 

56

 

 

11.5

%

(Gain) loss on sale or acquisition of foreclosed assets

 

—

 

 

 

(3

)

 

 

3

 

 

(100.0

)%

(Gain) loss on disposal of fixed assets

 

5

 

 

 

85

 

 

 

(80

)

 

(94.1

)%

Other miscellaneous expense

 

4,682

 

 

 

4,139

 

 

 

543

 

 

13.1

%

Total other non-interest expense

 

22,845

 

 

 

22,730

 

 

 

115

 

 

0.5

%

Total non-interest expense

$

61,131

 

 

$

59,585

 

 

$

1,546

 

 

2.6

%

Average full-time equivalent staff

 

1,171

 

 

 

1,194

 

 

 

(23

)

 

(1.9

)%

Total non-interest expense for the quarter ended June 30, 2025, increased $1.5 million or 2.6% to $61.1 million as compared to $59.6 million during the trailing quarter ended March 31, 2025. Total salaries and benefits expense, the largest non-interest expense component, increased by $1.4 million or 3.9%, due largely to incentive compensation associated with increased production volumes for deposits and loans as compared to the comparable quarter. Other non-interest expense line items evidenced a mix of broad based incremental changes, in addition to contract termination costs of $0.2 million which are included in other miscellaneous expense for the quarter ended June 30, 2025.

 

Three months ended June 30,

 

 

 

 

(dollars in thousands)

 

2025

 

 

 

2024

 

 

Change

 

% Change

Base salaries, net of deferred loan origination costs

$

25,757

 

$

23,852

 

$

1,905

 

 

8.0

%

Incentive compensation

 

5,223

 

 

 

4,711

 

 

 

512

 

 

10.9

%

Benefits and other compensation costs

 

7,306

 

 

 

6,838

 

 

 

468

 

 

6.8

%

Total salaries and benefits expense

 

38,286

 

 

 

35,401

 

 

 

2,885

 

 

8.1

%

Occupancy

 

4,200

 

 

 

4,063

 

 

 

137

 

 

3.4

%

Data processing and software

 

4,959

 

 

 

5,094

 

 

 

(135

)

 

(2.7

)%

Equipment

 

1,189

 

 

 

1,330

 

 

 

(141

)

 

(10.6

)%

Intangible amortization

 

483

 

 

 

1,030

 

 

 

(547

)

 

(53.1

)%

Advertising

 

808

 

 

 

819

 

 

 

(11

)

 

(1.3

)%

ATM and POS network charges

 

1,843

 

 

 

1,987

 

 

 

(144

)

 

(7.2

)%

Professional fees

 

1,667

 

 

 

1,814

 

 

 

(147

)

 

(8.1

)%

Telecommunications

 

513

 

 

 

558

 

 

 

(45

)

 

(8.1

)%

Regulatory assessments and insurance

 

1,297

 

 

 

1,144

 

 

 

153

 

 

13.4

%

Postage

 

385

 

 

 

340

 

 

 

45

 

 

13.2

%

Operational loss

 

270

 

 

 

244

 

 

 

26

 

 

10.7

%

Courier service

 

544

 

 

 

559

 

 

 

(15

)

 

(2.7

)%

(Gain) loss on disposal of fixed assets

 

5

 

 

 

1

 

 

 

4

 

 

400.0

%

Other miscellaneous expense

 

4,682

 

 

 

3,955

 

 

 

727

 

 

18.4

%

Total other non-interest expense

 

22,845

 

 

 

22,938

 

 

 

(93

)

 

(0.4

)%

Total non-interest expense

$

61,131

 

 

$

58,339

 

 

$

2,792

 

 

4.8

%

Average full-time equivalent staff

 

1,171

 

 

 

1,160

 

 

 

11

 

 

0.9

%

Total non-interest expense increased $2.8 million or 4.8% to $61.1 million during the three months ended June 30, 2025, as compared to $58.3 million for the quarter ended June 30, 2024. Total salaries and benefits expense increased by $2.9 million or 8.1%, reflecting the increase of $1.9 million in salaries, largely the result of routine merit increases and more recently strategic hiring focused on loan and deposit production; incentive compensation costs also increased by $0.5 million, reflecting elevated levels of production in both loans and deposits during the second quarter of 2025, as compared to 2024. Other non-interest expense line items generally evidenced broad based incremental decreases, slightly offset by elevated business travel, donations, as well as contract termination costs as noted above.

 

Six months ended June 30,

 

 

 

 

(dollars in thousands)

 

2025

 

 

 

2024

 

 

Change

 

% Change

Base salaries, net of deferred loan origination costs

$

51,158

 

 

$

47,872

 

 

$

3,286

 

 

6.9

%

Incentive compensation

 

9,261

 

 

 

7,968

 

 

 

1,293

 

 

16.2

%

Benefits and other compensation costs

 

14,722

 

 

 

13,865

 

 

 

857

 

 

6.2

%

Total salaries and benefits expense

 

75,141

 

 

 

69,705

 

 

 

5,436

 

 

7.8

%

Occupancy

 

8,277

 

 

 

8,014

 

 

 

263

 

 

3.3

%

Data processing and software

 

10,017

 

 

 

10,201

 

 

 

(184

)

 

(1.8

)%

Equipment

 

2,473

 

 

 

2,686

 

 

 

(213

)

 

(7.9

)%

Intangible amortization

 

997

 

 

 

2,060

 

 

 

(1,063

)

 

(51.6

)%

Advertising

 

2,012

 

 

 

1,581

 

 

 

431

 

 

27.3

%

ATM and POS network charges

 

3,694

 

 

 

3,648

 

 

 

46

 

 

1.3

%

Professional fees

 

3,185

 

 

 

3,154

 

 

 

31

 

 

1.0

%

Telecommunications

 

1,001

 

 

 

1,069

 

 

 

(68

)

 

(6.4

)%

Regulatory assessments and insurance

 

2,580

 

 

 

2,395

 

 

 

185

 

 

7.7

%

Postage

 

705

 

 

 

648

 

 

 

57

 

 

8.8

%

Operational loss

 

694

 

 

 

596

 

 

 

98

 

 

16.4

%

Courier service

 

1,032

 

 

 

1,039

 

 

 

(7

)

 

(0.7

)%

(Gain) loss on sale or acquisition of foreclosed assets

 

(3

)

 

 

(38

)

 

 

35

 

 

(92.1

)%

(Gain) loss on disposal of fixed assets

 

90

 

 

 

6

 

 

 

84

 

 

1400.0

%

Other miscellaneous expense

 

8,821

 

 

 

8,079

 

 

 

742

 

 

9.2

%

Total other non-interest expense

 

45,575

 

 

 

45,138

 

 

 

437

 

 

1.0

%

Total non-interest expense

$

120,716

 

 

$

114,843

 

 

$

5,873

 

 

5.1

%

Average full-time equivalent staff

 

1,183

 

 

 

1,174

 

 

 

9

 

 

0.8

%

Non-interest expense increased $5.9 million or 5.1% to $120.7 million during the six months ended June 30, 2025, as compared to $114.8 million for the six months ended June 30, 2024. The largest component was salaries and benefits expense which increased $5.4 million or 7.8% to $75.1 million, largely for the reasons mentioned above. Other non-interest expense line items evidenced broad based but incremental increases, led by elevated business travel, donations, and non-recurring contract termination costs.

Provision for Income Taxes

The Company’s effective tax rate was 27.2% for the quarter ended June 30, 2025, as compared to 25.3% for the quarter ended March 31, 2025, and 25.8% for the quarter ended June 30, 2024. Differences between the Company's effective tax rate and applicable federal and state blended statutory rate of approximately 29.6% are due to the proportion of non-taxable revenues, non-deductible expenses, and benefits from tax credits as compared to the levels of pre-tax earnings.

About TriCo Bancshares

Established in 1975, Tri Counties Bank is a wholly-owned subsidiary of TriCo Bancshares (NASDAQ: TCBK) headquartered in Chico, California, providing a unique brand of customer Service with Solutions available in traditional stand-alone and in-store bank branches and loan production offices in communities throughout California. Tri Counties Bank provides an extensive and competitive breadth of consumer, small business and commercial banking financial services, along with convenient around-the-clock ATMs, online and mobile banking access. Brokerage services are provided by Tri Counties Advisors through affiliation with Raymond James Financial Services, Inc. Visit www.TriCountiesBank.com to learn more.

Forward-Looking Statements

The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on us. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond our control. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: macroeconomic, geopolitical, and other challenges and uncertainties, including those related to actual or potential policies and actions from the new U.S. administration, such as tariffs, and reciprocal actions by other countries or regions, significant volatility and disruptions in financial markets, a resurgence of inflation, increases in unemployment rates, increases in interest rates and slowing economic growth or recession in the U.S. and other countries or regions; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit; the impact of changes in financial services industry policies, laws and regulations; regulatory restrictions or adverse regulatory findings affecting our ability to successfully market and price our products to consumers; adverse developments in the financial services industry generally such as bank failures and any related impact on depositor behavior or investor sentiment; the impacts of international hostilities, wars, terrorism or geopolitical events; risks related to the sufficiency of liquidity, including our ability to attract and maintain deposits; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learning; extreme weather, natural disasters and other catastrophic events and their effects on our customers and the economic and business environments in which we operate; current and future economic and market conditions of the local economies in which we conduct operations; declines in housing and commercial real estate prices and changes in the financial performance and/or condition of our borrowers; the market value of our investment securities and possible other-than-temporary impairment of securities held by us due to changes in credit quality or rates; the availability of, and cost of, sources of funding and the demand for our products; the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; the costs or effects of mergers, acquisitions or dispositions we may make, as well as whether we are able to obtain any required governmental approvals in connection with any such activities, or identify and complete favorable transactions in the future, and/or realize the anticipated financial and business benefits; the volatility of the stock market and its impact on our stock price and our ability to conduct acquisitions; the regulatory and financial impacts associated with exceeding $10 billion in total assets; the ability to execute our business plan in new markets; our future operating or financial performance, including our outlook for future growth; changes in the level and direction of our nonperforming assets and charge-offs and the appropriateness of the allowance for credit losses; the effectiveness of us managing the mix of earning assets and in improving, resolving or liquidating lower-quality assets; changes in accounting standards and practices; changes in consumer spending, borrowing and savings habits; the effects of changes in the level or cost of checking or savings account deposits on our funding costs and net interest margin; increasing noninterest expense and its impact on our financial performance; competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional competitors including retail businesses and technology companies; the challenges of attracting, integrating and retaining key employees; the impact of the 2023 cyber security ransomware incident, including the pending litigation, on our operations and reputation; the vulnerability of our operational or security systems or infrastructure, the systems of third-party vendors or other service providers with whom we contract, and our customers to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and data/security breaches and the cost to defend against and respond to such incidents; increased data security risks due to work from home arrangements and email vulnerability; failure to safeguard personal information, and any resulting litigation; the effect of a fall in stock market prices on our brokerage and wealth management businesses; the emergence or continuation of widespread health emergencies or pandemics; potential judgments, orders, settlements, penalties, fines and reputational damage resulting from pending or future litigation and regulatory investigations, proceedings and enforcement actions; and our ability to manage the risks involved in the foregoing. In addition, due to the rapidly evolving and changes in U.S. trade policies and practices, the amount and duration of any tariffs and their ultimate impact on us, our customers, financial markets, and the overall U.S. and global economies is currently uncertain. Nonetheless, prolonged uncertainty, elevated tariff levels or their wide-spread use in U.S. trade policy could weaken economic conditions and adversely impact the ability of borrowers to repay outstanding loans or the value of collateral securing these loans or adversely affect financial markets. There can be no assurance that future developments affecting us will be the same as those anticipated by management. Additional factors that could cause results to differ materially from those described above can be found in our filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” Section of TriCo’s Annual Report on Form 10-K for the year ended December 31, 2024, Such filings are also available in the “Investor Relations” section of our website, https://www.tcbk.com/investor-relations. Annualized, pro forma, projections and estimates are not forecasts and may not reflect actual results. We undertake no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

TriCo Bancshares—Condensed Consolidated Financial Data (unaudited)
 

(dollars in thousands, except per share data)

Three months ended

 

June 30,
2025

 

March 31,
2025

 

December 31,
2024

 

September 30,
2024

 

June 30,
2024

Revenue and Expense Data

 

 

 

 

 

 

 

 

 

Interest income

$

116,361

 

 

$

114,077

 

 

$

116,842

 

 

$

117,347

 

 

$

117,032

 

Interest expense

 

29,842

 

 

 

31,535

 

 

 

32,752

 

 

 

34,736

 

 

 

35,035

 

Net interest income

 

86,519

 

 

 

82,542

 

 

 

84,090

 

 

 

82,611

 

 

 

81,997

 

Provision for credit losses

 

4,665

 

 

 

3,728

 

 

 

1,702

 

 

 

220

 

 

 

405

 

Noninterest income:

 

 

 

 

 

 

 

 

 

Service charges and fees

 

13,650

 

 

 

12,678

 

 

 

13,115

 

 

 

12,782

 

 

 

12,796

 

(Loss) gain on sale or exchange of investment securities

 

4

 

 

 

(1,146

)

 

 

—

 

 

 

2

 

 

 

(45

)

Other income

 

3,436

 

 

 

4,541

 

 

 

3,160

 

 

 

3,711

 

 

 

3,115

 

Total noninterest income

 

17,090

 

 

 

16,073

 

 

 

16,275

 

 

 

16,495

 

 

 

15,866

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

38,286

 

 

 

36,855

 

 

 

35,326

 

 

 

35,550

 

 

 

35,401

 

Occupancy and equipment

 

5,389

 

 

 

5,361

 

 

 

5,570

 

 

 

5,565

 

 

 

5,393

 

Data processing and network

 

6,802

 

 

 

6,909

 

 

 

7,284

 

 

 

6,970

 

 

 

7,081

 

Other noninterest expense

 

10,654

 

 

 

10,460

 

 

 

11,595

 

 

 

11,402

 

 

 

10,464

 

Total noninterest expense

 

61,131

 

 

 

59,585

 

 

 

59,775

 

 

 

59,487

 

 

 

58,339

 

Total income before taxes

 

37,813

 

 

 

35,302

 

 

 

38,888

 

 

 

39,399

 

 

 

39,119

 

Provision for income taxes

 

10,271

 

 

 

8,939

 

 

 

9,854

 

 

 

10,348

 

 

 

10,085

 

Net income

$

27,542

 

 

$

26,363

 

 

$

29,034

 

 

$

29,051

 

 

$

29,034

 

Share Data

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.84

 

 

$

0.80

 

 

$

0.88

 

 

$

0.88

 

 

$

0.88

 

Diluted earnings per share

$

0.84

 

 

$

0.80

 

 

$

0.88

 

 

$

0.88

 

 

$

0.87

 

Dividends per share

$

0.33

 

 

$

0.33

 

 

$

0.33

 

 

$

0.33

 

 

$

0.33

 

Book value per common share

$

38.92

 

 

$

38.17

 

 

$

37.03

 

 

$

37.55

 

 

$

35.62

 

Tangible book value per common share (1)

$

29.40

 

 

$

28.73

 

 

$

27.60

 

 

$

28.09

 

 

$

26.13

 

Shares outstanding

 

32,550,264

 

 

 

32,892,488

 

 

 

32,970,425

 

 

 

33,000,508

 

 

 

32,989,327

 

Weighted average shares

 

32,757,378

 

 

 

32,952,541

 

 

 

32,993,975

 

 

 

32,992,855

 

 

 

33,121,271

 

Weighted average diluted shares

 

32,935,750

 

 

 

33,129,161

 

 

 

33,161,715

 

 

 

33,136,858

 

 

 

33,243,955

 

Credit Quality

 

 

 

 

 

 

 

 

 

Allowance for credit losses to gross loans

 

1.79

%

 

 

1.88

%

 

 

1.85

%

 

 

1.85

%

 

 

1.83

%

Loans past due 30 days or more

$

42,965

 

 

$

44,753

 

 

$

32,711

 

 

$

37,888

 

 

$

30,372

 

Total nonperforming loans

$

64,783

 

 

$

54,854

 

 

$

44,096

 

 

$

41,636

 

 

$

32,774

 

Total nonperforming assets

$

67,466

 

 

$

57,539

 

 

$

46,882

 

 

$

44,400

 

 

$

35,267

 

Loans charged-off

$

8,595

 

 

$

374

 

 

$

722

 

 

$

444

 

 

$

1,610

 

Loans recovered

$

102

 

 

$

768

 

 

$

516

 

 

$

367

 

 

$

398

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

Return on average total assets

 

1.13

%

 

 

1.09

%

 

 

1.19

%

 

 

1.20

%

 

 

1.19

%

Return on average equity

 

8.68

%

 

 

8.54

%

 

 

9.30

%

 

 

9.52

%

 

 

9.99

%

Average yield on loans

 

5.76

%

 

 

5.71

%

 

 

5.78

%

 

 

5.83

%

 

 

5.82

%

Average yield on interest-earning assets

 

5.21

%

 

 

5.15

%

 

 

5.22

%

 

 

5.26

%

 

 

5.24

%

Average rate on interest-bearing deposits

 

1.97

%

 

 

2.06

%

 

 

2.15

%

 

 

2.23

%

 

 

2.14

%

Average cost of total deposits

 

1.37

%

 

 

1.43

%

 

 

1.46

%

 

 

1.52

%

 

 

1.45

%

Average cost of total deposits and other borrowings

 

1.37

%

 

 

1.46

%

 

 

1.50

%

 

 

1.59

%

 

 

1.59

%

Average rate on borrowings & subordinated debt

 

5.84

%

 

 

5.68

%

 

 

5.80

%

 

 

5.83

%

 

 

5.65

%

Average rate on interest-bearing liabilities

 

2.05

%

 

 

2.18

%

 

 

2.27

%

 

 

2.40

%

 

 

2.39

%

Net interest margin (fully tax-equivalent) (1)

 

3.88

%

 

 

3.73

%

 

 

3.76

%

 

 

3.71

%

 

 

3.68

%

Loans to deposits

 

83.08

%

 

 

83.13

%

 

 

83.69

%

 

 

83.16

%

 

 

83.76

%

Efficiency ratio

 

59.00

%

 

 

60.42

%

 

 

59.56

%

 

 

60.02

%

 

 

59.61

%

Supplemental Loan Interest Income Data

 

 

 

 

 

 

 

 

 

Discount accretion on acquired loans

$

1,247

 

 

$

1,995

 

 

$

1,129

 

 

$

1,018

 

 

$

850

 

All other loan interest income (1)

$

97,448

 

 

$

93,383

 

 

$

96,563

 

 

$

97,067

 

 

$

97,379

 

Total loan interest income (1)

$

98,695

 

 

$

95,378

 

 

$

97,692

 

 

$

98,085

 

 

$

98,229

 

 

(1) Non-GAAP measure

 
TriCo Bancshares—Condensed Consolidated Financial Data (unaudited)
 
(dollars in thousands, except per share data)

 

Balance Sheet Data

June 30,
2025

 

March 31,
2025

 

December 31,
2024

 

September 30,
2024

 

June 30,
2024

Cash and due from banks

$

314,268

 

 

$

308,250

 

 

$

144,956

 

 

$

320,114

 

 

$

206,558

 

Securities, available for sale, net

 

1,818,032

 

 

 

1,854,998

 

 

 

1,907,494

 

 

 

1,981,960

 

 

 

1,946,167

 

Securities, held to maturity, net

 

101,672

 

 

 

106,868

 

 

 

111,866

 

 

 

117,259

 

 

 

122,673

 

Restricted equity securities

 

17,250

 

 

 

17,250

 

 

 

17,250

 

 

 

17,250

 

 

 

17,250

 

Loans held for sale

 

1,577

 

 

 

2,028

 

 

 

709

 

 

 

1,995

 

 

 

474

 

Loans:

 

 

 

 

 

 

 

 

 

Commercial real estate

 

4,730,732

 

 

 

4,634,446

 

 

 

4,577,632

 

 

 

4,487,524

 

 

 

4,461,111

 

Consumer

 

1,288,691

 

 

 

1,279,878

 

 

 

1,281,059

 

 

 

1,283,963

 

 

 

1,300,727

 

Commercial and industrial

 

467,564

 

 

 

457,189

 

 

 

471,271

 

 

 

484,763

 

 

 

548,625

 

Construction

 

304,920

 

 

 

298,319

 

 

 

279,933

 

 

 

276,095

 

 

 

283,374

 

Agriculture production

 

161,457

 

 

 

144,588

 

 

 

151,822

 

 

 

144,123

 

 

 

140,239

 

Leases

 

5,629

 

 

 

6,354

 

 

 

6,806

 

 

 

7,423

 

 

 

8,450

 

Total loans, gross

 

6,958,993

 

 

 

6,820,774

 

 

 

6,768,523

 

 

 

6,683,891

 

 

 

6,742,526

 

Allowance for credit losses

 

(124,455

)

 

 

(128,423

)

 

 

(125,366

)

 

 

(123,760

)

 

 

(123,517

)

Total loans, net

 

6,834,538

 

 

 

6,692,351

 

 

 

6,643,157

 

 

 

6,560,131

 

 

 

6,619,009

 

Premises and equipment

 

70,092

 

 

 

70,475

 

 

 

70,287

 

 

 

70,423

 

 

 

70,621

 

Cash value of life insurance

 

135,520

 

 

 

134,678

 

 

 

140,149

 

 

 

139,312

 

 

 

138,525

 

Accrued interest receivable

 

32,534

 

 

 

32,536

 

 

 

34,810

 

 

 

33,061

 

 

 

35,527

 

Goodwill

 

304,442

 

 

 

304,442

 

 

 

304,442

 

 

 

304,442

 

 

 

304,442

 

Other intangible assets

 

5,435

 

 

 

5,918

 

 

 

6,432

 

 

 

7,462

 

 

 

8,492

 

Operating leases, right-of-use

 

22,158

 

 

 

22,806

 

 

 

23,529

 

 

 

24,716

 

 

 

25,113

 

Other assets

 

266,465

 

 

 

266,999

 

 

 

268,647

 

 

 

245,765

 

 

 

246,548

 

Total assets

$

9,923,983

 

 

$

9,819,599

 

 

$

9,673,728

 

 

$

9,823,890

 

 

$

9,741,399

 

Deposits:

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

2,559,788

 

 

$

2,539,109

 

 

$

2,548,613

 

 

$

2,547,736

 

 

$

2,557,063

 

Interest-bearing demand deposits

 

1,826,041

 

 

 

1,778,615

 

 

 

1,758,629

 

 

 

1,708,726

 

 

 

1,791,466

 

Savings deposits

 

2,879,212

 

 

 

2,777,840

 

 

 

2,657,849

 

 

 

2,690,045

 

 

 

2,667,006

 

Time certificates

 

1,110,768

 

 

 

1,109,768

 

 

 

1,122,485

 

 

 

1,090,584

 

 

 

1,034,695

 

Total deposits

 

8,375,809

 

 

 

8,205,332

 

 

 

8,087,576

 

 

 

8,037,091

 

 

 

8,050,230

 

Accrued interest payable

 

10,172

 

 

 

9,685

 

 

 

11,501

 

 

 

11,664

 

 

 

12,018

 

Operating lease liability

 

23,965

 

 

 

24,657

 

 

 

25,437

 

 

 

26,668

 

 

 

27,122

 

Other liabilities

 

128,162

 

 

 

131,478

 

 

 

137,506

 

 

 

141,521

 

 

 

128,063

 

Other borrowings

 

17,788

 

 

 

91,706

 

 

 

89,610

 

 

 

266,767

 

 

 

247,773

 

Junior subordinated debt

 

101,264

 

 

 

101,222

 

 

 

101,191

 

 

 

101,164

 

 

 

101,143

 

Total liabilities

 

8,657,160

 

 

 

8,564,080

 

 

 

8,452,821

 

 

 

8,584,875

 

 

 

8,566,349

 

Common stock

 

685,489

 

 

 

692,500

 

 

 

693,462

 

 

 

693,176

 

 

 

691,878

 

Retained earnings

 

702,690

 

 

 

693,383

 

 

 

679,907

 

 

 

662,816

 

 

 

644,687

 

Accumulated other comprehensive loss, net of tax

 

(121,356

)

 

 

(130,364

)

 

 

(152,462

)

 

 

(116,977

)

 

 

(161,515

)

Total shareholders’ equity

$

1,266,823

 

 

$

1,255,519

 

 

$

1,220,907

 

 

$

1,239,015

 

 

$

1,175,050

 

Quarterly Average Balance Data

 

 

 

 

 

 

 

 

 

Average loans

$

6,878,186

 

 

$

6,776,188

 

 

$

6,720,732

 

 

$

6,690,326

 

 

$

6,792,303

 

Average interest-earning assets

$

8,973,959

 

 

$

9,007,447

 

 

$

8,932,077

 

 

$

8,892,223

 

 

$

9,001,674

 

Average total assets

$

9,778,834

 

 

$

9,808,216

 

 

$

9,725,643

 

 

$

9,666,979

 

 

$

9,782,228

 

Average deposits

$

8,222,982

 

 

$

8,195,793

 

 

$

8,118,663

 

 

$

8,020,936

 

 

$

8,024,441

 

Average borrowings and subordinated debt

$

123,943

 

 

$

190,666

 

 

$

196,375

 

 

$

276,418

 

 

$

426,732

 

Average total equity

$

1,273,092

 

 

$

1,251,994

 

 

$

1,241,522

 

 

$

1,214,510

 

 

$

1,169,324

 

Capital Ratio Data

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

15.6

%

 

 

15.8

%

 

 

15.7

%

 

 

15.6

%

 

 

15.2

%

Tier 1 capital ratio

 

13.9

%

 

 

14.1

%

 

 

14.0

%

 

 

13.8

%

 

 

13.4

%

Tier 1 common equity ratio

 

13.1

%

 

 

13.3

%

 

 

13.2

%

 

 

13.1

%

 

 

12.7

%

Tier 1 leverage ratio

 

11.8

%

 

 

11.7

%

 

 

11.7

%

 

 

11.6

%

 

 

11.2

%

Tangible capital ratio (1)

 

10.0

%

 

 

9.9

%

 

 

9.7

%

 

 

9.7

%

 

 

9.1

%

 

(1) Non-GAAP measure

 

TriCo Bancshares—Non-GAAP Financial Measures (unaudited)

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. Management has presented these non-GAAP financial measures in this press release because it believes that they provide useful and comparative information to assess trends in the Company's core operations reflected in the current quarter's results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below:

 

Three months ended

 

Six months ended

(dollars in thousands)

June 30,
2025

 

March 31,
2025

 

June 30,
2024

 

June 30,
2025

 

June 30,
2024

Net interest margin

 

 

 

 

 

 

 

 

 

Acquired loans discount accretion, net:

 

 

 

 

 

 

 

 

 

Amount (included in interest income)

$

1,247

 

 

$

1,995

 

 

$

850

 

 

$

3,242

 

 

$

2,182

 

Effect on average loan yield

 

0.08

%

 

 

0.12

%

 

 

0.05

%

 

 

0.09

%

 

 

0.06

%

Effect on net interest margin (FTE)

 

0.06

%

 

 

0.09

%

 

 

0.04

%

 

 

0.07

%

 

 

0.05

%

Net interest margin (FTE)

 

3.88

%

 

 

3.73

%

 

 

3.68

%

 

 

3.81

%

 

 

3.68

%

Net interest margin less effect of acquired loan discount accretion (Non-GAAP)

 

3.82

%

 

 

3.64

%

 

 

3.64

%

 

 

3.73

%

 

 

3.63

%

 

Three months ended

 

Six months ended

(dollars in thousands)

June 30,
2025

 

March 31,
2025

 

June 30,
2024

 

June 30,
2025

 

June 30,
2024

Pre-tax pre-provision return on average assets or equity

Net income (GAAP)

$

27,542

 

 

$

26,363

 

 

$

29,034

 

 

$

53,905

 

 

$

56,783

 

Exclude provision for income taxes

 

10,271

 

 

 

8,939

 

 

 

10,085

 

 

 

19,210

 

 

 

20,034

 

Exclude provision for credit losses

 

4,665

 

 

 

3,728

 

 

 

405

 

 

 

8,393

 

 

 

4,710

 

Net income before provisions for income taxes and credit losses (Non-GAAP)

$

42,478

 

 

$

39,030

 

 

$

39,524

 

 

$

81,508

 

 

$

81,527

 

 

 

 

 

 

 

 

 

 

 

Average assets (GAAP)

$

9,778,834

 

 

$

9,808,216

 

 

$

9,782,228

 

 

$

9,793,444

 

 

$

9,819,012

 

Average equity (GAAP)

$

1,273,092

 

 

$

1,251,994

 

 

$

1,169,324

 

 

$

1,262,602

 

 

$

1,171,958

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (GAAP) (annualized)

 

1.13

%

 

 

1.09

%

 

 

1.19

%

 

 

1.11

%

 

 

1.16

%

Pre-tax pre-provision return on average assets (Non-GAAP) (annualized)

 

1.74

%

 

 

1.61

%

 

 

1.63

%

 

 

1.68

%

 

 

1.67

%

Return on average equity (GAAP) (annualized)

 

8.68

%

 

 

8.54

%

 

 

9.99

%

 

 

8.61

%

 

 

9.74

%

Pre-tax pre-provision return on average equity (Non-GAAP) (annualized)

 

13.38

%

 

 

12.64

%

 

 

13.59

%

 

 

13.02

%

 

 

13.95

%

 

Three months ended

 

Six months ended

(dollars in thousands)

June 30,
2025

 

March 31,
2025

 

June 30,
2024

 

June 30,
2025

 

June 30,
2024

Return on tangible common equity

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

$

1,273,092

 

 

$

1,251,994

 

 

$

1,169,324

 

 

$

1,262,602

 

 

$

1,171,958

 

Exclude average goodwill

 

304,442

 

 

 

304,442

 

 

 

304,442

 

 

 

304,442

 

 

 

304,442

 

Exclude average other intangibles

 

5,743

 

 

 

6,234

 

 

 

9,007

 

 

 

5,987

 

 

 

9,522

 

Average tangible common equity (Non-GAAP)

$

962,907

 

 

$

941,318

 

 

$

855,875

 

 

$

952,173

 

 

$

857,994

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

27,542

 

 

$

26,363

 

 

$

29,034

 

 

$

53,905

 

 

$

56,783

 

Exclude amortization of intangible assets, net of tax effect

 

340

 

 

 

362

 

 

 

725

 

 

 

702

 

 

 

1,451

 

Tangible net income available to common shareholders (Non-GAAP)

$

27,882

 

 

$

26,725

 

 

$

29,759

 

 

$

54,607

 

 

$

58,234

 

 

 

 

 

 

 

 

 

 

 

Return on average equity (GAAP) (annualized)

 

8.68

%

 

 

8.54

%

 

 

9.99

%

 

 

8.61

%

 

 

9.74

%

Return on average tangible common equity (Non-GAAP)

 

11.61

%

 

 

11.51

%

 

 

13.98

%

 

 

11.57

%

 

 

13.65

%

 

Three months ended

(dollars in thousands)

June 30,
2025

 

March 31,
2025

 

December 31,
2024

 

September 30,
2024

 

June 30,
2024

Tangible shareholders' equity to tangible assets

 

 

 

 

 

 

 

 

 

Shareholders' equity (GAAP)

$

1,266,823

 

 

$

1,255,519

 

 

$

1,220,907

 

 

$

1,239,015

 

 

$

1,175,050

 

Exclude goodwill and other intangible assets, net

 

309,877

 

 

 

310,360

 

 

 

310,874

 

 

 

311,904

 

 

 

312,934

 

Tangible shareholders' equity (Non-GAAP)

$

956,946

 

 

$

945,159

 

 

$

910,033

 

 

$

927,111

 

 

$

862,116

 

 

 

 

 

 

 

 

 

 

 

Total assets (GAAP)

$

9,923,983

 

 

$

9,819,599

 

 

$

9,673,728

 

 

$

9,823,890

 

 

$

9,741,399

 

Exclude goodwill and other intangible assets, net

 

309,877

 

 

 

310,360

 

 

 

310,874

 

 

 

311,904

 

 

 

312,934

 

Total tangible assets (Non-GAAP)

$

9,614,106

 

 

$

9,509,239

 

 

$

9,362,854

 

 

$

9,511,986

 

 

$

9,428,465

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity to total assets (GAAP)

 

12.77

%

 

 

12.79

%

 

 

12.62

%

 

 

12.61

%

 

 

12.06

%

Tangible shareholders' equity to tangible assets (Non-GAAP)

 

9.95

%

 

 

9.94

%

 

 

9.72

%

 

 

9.75

%

 

 

9.14

%

 

Three months ended

(dollars in thousands)

June 30,
2025

 

March 31,
2025

 

December 31,
2024

 

September 30,
2024

 

June 30,
2024

Tangible common shareholders' equity per share

 

 

 

 

 

 

 

 

 

Tangible shareholders' equity (Non-GAAP)

$

956,946

 

$

945,159

 

$

910,033

 

$

927,111

 

$

862,116

 

 

 

 

 

 

 

 

 

 

Common shares outstanding at end of period

 

32,550,264

 

 

 

32,892,488

 

 

 

32,970,425

 

 

 

33,000,508

 

 

 

32,989,327

 

 

 

 

 

 

 

 

 

 

 

Common shareholders' equity (book value) per share (GAAP)

$

38.92

 

 

$

38.17

 

 

$

37.03

 

 

$

37.55

 

 

$

35.62

 

Tangible common shareholders' equity (tangible book value) per share (Non-GAAP)

$

29.40

 

 

$

28.73

 

 

$

27.60

 

 

$

28.09

 

 

$

26.13

 

 

Investor Contact
Peter G. Wiese, EVP & CFO, (530) 898-0300

Source: TriCo Bancshares