FT Markets Data
Trico Bancshares

TriCo Bancshares Reports Fourth Quarter 2025 Net Income of $33.6 Million & Authorization of New Share Repurchase Program

4Q25 Financial Highlights

  • Net income was $33.6 million or $1.03 per diluted share as compared to $34.0 million or $1.04 per diluted share in the trailing quarter, and an increase of $4.6 million or 15.8% from the fourth quarter of 2024
  • Net interest income (FTE) was $92.5 million, an increase of $2.7 million or 2.97% over the trailing quarter; net interest margin (FTE) was 4.02% in the recent quarter, an increase of 10 basis points over 3.92% in the trailing quarter
  • Loan balances increased $104.3 million or 6.0% (annualized) from the trailing quarter and increased $342.6 million or 5.1% from the same quarter of the prior year
  • Deposit balances decreased $70.6 million or 3.4% (annualized) from the trailing quarter and increased $176.3 million or 2.2% from the same quarter of the prior year. One-way sell deposit balances totaled $72.9 million at quarter end, as compared to zero for both the trailing quarter and same quarter of the prior year
  • Average non-interest bearing deposits grew by 2.1% (annualized) and were 31.0% of total deposits during the quarter
  • Yield on average earning assets was 5.23%, a decrease of 2 basis points over the 5.25% in the trailing quarter; yield on average loans was 5.77%, an increase of 2 basis points over the 5.75% in the trailing quarter
  • The average cost of total deposits was 1.29%, an decrease of 10 basis points as compared to 1.39% in the trailing quarter, and a decrease of 17 basis points from 1.46% in the same quarter of the prior year

CHICO, Calif.--(BUSINESS WIRE)--Jan. 22, 2026-- TriCo Bancshares (NASDAQ: TCBK):

Executive Commentary:

“The strong performance trajectory which we close 2025 and start 2026 gives us good reason to be optimistic about our future. TriCo's foundation, built with exceptional employees and customers, consistently allows us to navigate a broad range of challenges and opportunities with confidence. Execution of our long-term strategies remain our primary focus, and we believe that alignment between the current economic outlook and our market positioning will be beneficial to the realization of our priorities,” said Rick Smith, Chairman and CEO.

Peter Wiese, EVP and CFO added, “The expansion of both net interest income and net interest margin, despite recent Federal Funds rate cuts, was certainly a highlight of the quarter and, given the slope of the yield curve, we continue to expect incremental improvement through 2026. While we also held expense growth to a minimum during 2025 (approximately 3%), year over year expense growth in 2026 is likely to accelerate (5%), but should still allow for positive operating leverage.”

Selected Financial Highlights

  • For the quarter ended December 31, 2025, the Company’s return on average assets was 1.34%, while the return on average equity was 10.02%; for the trailing quarter ended September 30, 2025, the Company’s return on average assets was 1.36%, while the return on average equity was 10.47%
  • Diluted earnings per share were $1.03 for the fourth quarter of 2025, compared to $1.04 for the trailing quarter and $0.88 during the fourth quarter of 2024
  • The loan to deposit ratio was 86.05% as of December 31, 2025, as compared to 84.07% for the trailing quarter end. Management seeks to maintain this ratio within a range of 83.0% to 90.0% for purposes of revenue generation enhancement.
  • The efficiency ratio was 54.68% for the quarter ended December 31, 2025, as compared to 56.18% for the trailing quarter
  • The provision for credit losses was $3.0 million during the quarter ended December 31, 2025, as compared to $0.7 million during the trailing quarter
  • The allowance for credit losses (ACL) to total loans was 1.77% as of December 31, 2025, compared to 1.78% as of the trailing quarter end, and 1.85% as of December 31, 2024. Non-performing assets to total assets were 0.72% on December 31, 2025, as compared to 0.72% as of September 30, 2025, and 0.48% at December 31, 2024. At December 31, 2025, the ACL represented 196% 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-K for the period ended December 31, 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

 

 

 

 

 

December 31,
2025

 

September 30,
2025

 

 

 

 

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

 

 

$ Change

 

% Change

Net interest income

$

92,227

 

 

$

89,555

 

 

$

2,672

 

 

3.0

%

Provision for credit losses

 

(3,000

)

 

 

(670

)

 

 

(2,330

)

 

347.8

%

Noninterest income

 

17,168

 

 

 

18,007

 

 

 

(839

)

 

(4.7

)%

Noninterest expense

 

(59,819

)

 

 

(60,424

)

 

 

605

 

 

(1.0

)%

Provision for income taxes

 

(12,942

)

 

 

(12,449

)

 

 

(493

)

 

4.0

%

Net income

$

33,634

 

 

$

34,019

 

 

$

(385

)

 

(1.1

)%

Diluted earnings per share

$

1.03

 

 

$

1.04

 

 

$

(0.01

)

 

(1.0

)%

Dividends per share

$

0.36

 

 

$

0.36

 

 

$

—

 

 

—

%

Average common shares

 

32,445

 

 

 

32,542

 

 

 

(97

)

 

(0.3

)%

Average diluted common shares

 

32,631

 

 

 

32,723

 

 

 

(92

)

 

(0.3

)%

Return on average total assets

 

1.34

%

 

 

1.36

%

 

 

 

 

Return on average equity

 

10.02

%

 

 

10.47

%

 

 

 

 

Efficiency ratio

 

54.68

%

 

 

56.18

%

 

 

 

 

 

Three months ended
December 31,

 

 

 

 

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

 

2025

 

 

 

2024

 

 

$ Change

 

% Change

Net interest income

$

92,227

 

 

$

84,090

 

 

$

8,137

 

 

9.7

%

Provision for credit losses

 

(3,000

)

 

 

(1,702

)

 

 

(1,298

)

 

76.3

%

Noninterest income

 

17,168

 

 

 

16,275

 

 

 

893

 

 

5.5

%

Noninterest expense

 

(59,819

)

 

 

(59,775

)

 

 

(44

)

 

0.1

%

Provision for income taxes

 

(12,942

)

 

 

(9,854

)

 

 

(3,088

)

 

31.3

%

Net income

$

33,634

 

 

$

29,034

 

 

$

4,600

 

 

15.8

%

Diluted earnings per share

$

1.03

 

 

$

0.88

 

 

$

0.15

 

 

17.0

%

Dividends per share

$

0.36

 

 

$

0.33

 

 

$

0.03

 

 

9.1

%

Average common shares

 

32,445

 

 

 

32,994

 

 

 

(549

)

 

(1.7

)%

Average diluted common shares

 

32,631

 

 

 

33,162

 

 

 

(531

)

 

(1.6

)%

Return on average total assets

 

1.34

%

 

 

1.19

%

 

 

 

 

Return on average equity

 

10.02

%

 

 

9.30

%

 

 

 

 

Efficiency ratio

 

54.68

%

 

 

59.56

%

 

 

 

 

 

Twelve months ended
December 31,

 

 

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

 

2025

 

 

 

2024

 

 

$ Change

 

% Change

Net interest income

$

350,843

 

 

$

331,434

 

 

$

19,409

 

 

5.9

%

Provision for credit losses

 

(12,063

)

 

 

(6,632

)

 

 

(5,431

)

 

81.9

%

Noninterest income

 

68,338

 

 

 

64,407

 

 

 

3,931

 

 

6.1

%

Noninterest expense

 

(240,959

)

 

 

(234,105

)

 

 

(6,854

)

 

2.9

%

Provision for income taxes

 

(44,601

)

 

 

(40,236

)

 

 

(4,365

)

 

10.8

%

Net income

$

121,558

 

 

$

114,868

 

 

$

6,690

 

 

5.8

%

Diluted earnings per share

$

3.70

 

 

$

3.46

 

 

$

0.24

 

 

6.9

%

Dividends per share

$

1.38

 

 

$

1.32

 

 

$

0.06

 

 

4.5

%

Average common shares

 

32,672

 

 

 

33,088

 

 

 

(416

)

 

(1.3

)%

Average diluted common shares

 

32,855

 

 

 

33,230

 

 

 

(375

)

 

(1.1

)%

Return on average total assets

 

1.23

%

 

 

1.18

%

 

 

 

 

Return on average equity

 

9.45

%

 

 

9.57

%

 

 

 

 

Efficiency ratio

 

57.48

%

 

 

59.14

%

 

 

 

 

Balance Sheet Data

Total loans outstanding were $7.1 billion as of December 31, 2025, an increase of $342.6 million or 5.1% over December 31, 2024, and an increase of $104.3 million or 6.0% annualized as compared to the trailing quarter ended September 30, 2025. Investments decreased by $13.7 million and $194.2 million for the three and twelve month periods ended December 31, 2025, respectively, and ended the quarter with a balance of $1.84 billion or 18.8% of total assets. Quarterly average earning assets to quarterly total average assets was 91.9% on December 31, 2025, compared to 91.8% at December 31, 2024. The loan-to-deposit ratio was 86.1% on December 31, 2025, as compared to 83.7% at December 31, 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 $23.7 million during the quarter ended December 31, 2025, as net income of $33.6 million and a $10.4 million decrease in accumulated other comprehensive losses were partially offset by $11.7 million in cash dividends on common stock and $8.9 million in share repurchase activity. As a result, the Company’s book value increased to $41.07 per share at December 31, 2025, compared to $40.12 at September 30, 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 $31.52 per share at December 31, 2025, as compared to $30.61 at September 30, 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

December 31,
2025

 

September 30,
2025

 

 

 

Annualized

% Change

(dollars in thousands)

 

 

$ Change

Total assets

$

9,822,063

 

$

9,878,836

 

$

(56,773

)

 

(2.3

)%

Total loans

 

7,111,087

 

 

7,006,824

 

 

104,263

 

 

6.0

 

Total investments

 

1,842,417

 

 

1,856,133

 

 

(13,716

)

 

(3.0

)

Total deposits

 

8,263,901

 

 

8,334,461

 

 

(70,560

)

 

(3.4

)

Total other borrowings

 

11,713

 

 

17,039

 

 

(5,326

)

 

(125.0

)

Loans outstanding increased by $104.3 million or 6.0% on an annualized basis during the quarter ended December 31, 2025. During the quarter, loan originations/draws totaled approximately $502.8 million while payoffs/repayments of loans totaled $367.3 million, which compares to originations/draws and payoffs/repayments during the trailing quarter ended of $424.6 million and $377.1 million, respectively. Origination volume remains in-line in with the trajectory of historical levels, as interest rates continue to contract from the highs experienced in early 2025, and the macro-economic outlook remains optimistic for borrowers following the passage of tax and spending legislation that is expected to promote continued economic expansion. The activity within loan payoffs/repayments remained consistent with the trailing quarter and spread amongst numerous borrowers, regions and loan types.

Investment security balances decreased $13.7 million or 3.0% on an annualized basis during the quarter as a result of net prepayments/maturities of $56.7 million, and sales of $20.6 million, partially offset by net increases in the market value of securities of $14.7 million and purchases of $49.3 million. Investment security purchases were comprised of fixed rate agency mortgage-backed securities and collateralized loan obligations. 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 decreased by $70.6 million or 3.4% annualized during the period, which is consistent with the one-way sale of deposits totaling $72.9 million as of December 31, 2025. There were no deposit sales as of any comparable quarter end.

Average Trailing Quarter Balance Sheet Change

 

 

 

 

Quarterly average balances for the period ended

December 31,
2025

 

September 30,
2025

 

 

 

Annualized
% Change

(dollars in thousands)

 

 

$ Change

 

Total assets

$

9,929,582

 

$

9,900,675

 

$

28,907

 

 

1.2

%

Total loans

 

7,023,749

 

 

6,971,860

 

 

51,889

 

 

3.0

 

Total investments

 

1,840,956

 

 

1,869,394

 

 

(28,438

)

 

(6.1

)

Total deposits

 

8,376,361

 

 

8,361,600

 

 

14,761

 

 

0.7

 

Total other borrowings

 

13,705

 

 

17,495

 

 

(3,790

)

 

(86.7

)

Year Over Year Balance Sheet Change

 

 

 

 

 

 

 

Ending balances

As of December 31,

 

 

 

% Change

(dollars in thousands)

 

2025

 

 

2024

 

$ Change

 

Total assets

$

9,822,063

 

$

9,673,728

 

$

148,335

 

 

1.5

%

Total loans

 

7,111,087

 

 

6,768,523

 

 

342,564

 

 

5.1

 

Total investments

 

1,842,417

 

 

2,036,610

 

 

(194,193

)

 

(9.5

)

Total deposits

 

8,263,901

 

 

8,087,576

 

 

176,325

 

 

2.2

 

Total other borrowings

 

11,713

 

 

89,610

 

 

(77,897

)

 

(86.9

)

Net Interest Income and Net Interest Margin

The Company's yield on loans for the fourth quarter was 5.77%, an increase of 2 basis point from 5.75% as of the trailing quarter end and a decrease of 1 basis point as compared to 5.78% for the quarter ended December 31, 2024. The tax equivalent yield on the Company's investment security portfolio was 3.35% for the quarter ended December 31, 2025, a decrease of 14 basis points from the trailing quarter end of 3.49% and a decrease of 3 basis points from the 3.38% earned during the three months ended December 31, 2024. As compared to the trailing quarter, costs on interest-bearing deposits decreased by 12 basis points, while costs on interest-bearing liabilities declined by 15 basis points. The cost of total interest-bearing deposits decreased by 28 basis points, while the costs of total interest-bearing liabilities decreased by 37 basis points, respectively, between the three-month periods ended December 31, 2025 and 2024, respectively.

The FOMC cut short-term interest rates during the current quarter by 50 basis points, following a 25 basis point reduction during the third quarter. The fully tax-equivalent net interest income and net interest margin was $92.5 million and 4.02%, respectively, for the quarter ended December 31, 2025, and was $89.8 million and 3.92%, respectively, for the trailing quarter ended September 30, 2025. More specifically, the net interest rate spread improved by 13 basis points to 3.33% for the quarter ended December 31, 2025, as compared to the trailing quarter, while the net interest margin improved by 10 basis points to 4.02% 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 December 31, 2025, September 30, 2025, and December 31, 2024, deposits priced utilizing these customized strategies totaled $898.9 million, $1.0 billion, and $1.1 billion and carried weighted average rates of 3.05%, 3.33% and 3.59%, respectively.

 

Three months ended

 

 

 

 

 

December 31,
2025

 

September 30,
2025

 

 

 

 

(dollars in thousands)

 

 

Change

 

% Change

Interest income

$

120,147

 

 

$

119,987

 

 

$

160

 

 

0.1

%

Interest expense

 

(27,920

)

 

 

(30,432

)

 

 

2,512

 

 

(8.3

)%

Fully tax-equivalent adjustment (FTE) (1)

 

260

 

 

 

262

 

 

 

(2

)

 

(0.8

)%

Net interest income (FTE)

$

92,487

 

 

$

89,817

 

 

$

2,670

 

 

3.0

%

Net interest margin (FTE)

 

4.02

%

 

 

3.92

%

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans discount accretion, net:

 

 

 

 

 

 

 

Amount (included in interest income)

$

915

 

 

$

996

 

 

$

(81

)

 

(8.1

)%

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

 

3.98

%

 

 

3.88

%

 

 

0.10

%

 

 

 

 

Three months ended
December 31,

 

 

 

 

(dollars in thousands)

 

2025

 

 

 

2024

 

 

Change

 

% Change

Interest income

$

120,147

 

 

$

116,842

 

 

$

3,305

 

 

2.8

%

Interest expense

 

(27,920

)

 

 

(32,752

)

 

 

4,832

 

 

(14.8

)%

Fully tax-equivalent adjustment (FTE) (1)

 

260

 

 

 

266

 

 

 

(6

)

 

(2.3

)%

Net interest income (FTE)

$

92,487

 

 

$

84,356

 

 

$

8,131

 

 

9.6

%

Net interest margin (FTE)

 

4.02

%

 

 

3.76

%

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans discount accretion, net:

 

 

 

 

 

 

 

Amount (included in interest income)

$

915

 

 

$

1,129

 

 

$

(214

)

 

(19.0

)%

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

 

3.98

%

 

 

3.71

%

 

 

0.27

%

 

 

 

 

Twelve months ended
December 31,

 

 

 

 

(dollars in thousands)

 

2025

 

 

 

2024

 

 

Change

 

% Change

Interest income

$

470,572

 

 

$

466,638

 

 

$

3,934

 

 

0.8

%

Interest expense

 

(119,729

)

 

 

(135,204

)

 

 

15,475

 

 

(11.4

)%

Fully tax-equivalent adjustment (FTE) (1)

 

1,050

 

 

 

1,085

 

 

 

(35

)

 

(3.2

)%

Net interest income (FTE)

$

351,893

 

 

$

332,519

 

 

$

19,374

 

 

5.8

%

Net interest margin (FTE)

 

3.89

%

 

 

3.71

%

 

 

 

 

 

 

 

 

 

 

 

 

Acquired loans discount accretion, net:

 

 

 

 

 

 

 

Amount (included in interest income)

$

5,153

 

 

$

4,329

 

 

$

824

 

 

19.0

%

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

 

3.83

%

 

 

3.66

%

 

 

0.17

%

 

 

(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 and customary 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

 

December 31, 2025

 

September 30, 2025

 

December 31, 2024

(dollars in thousands)

Average

Balance

 

Income/

Expense

 

Yield/

Rate

 

Average

Balance

 

Income/

Expense

 

Yield/

Rate

 

Average

Balance

 

Income/

Expense

 

Yield/

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

7,023,749

 

$

102,231

 

5.77

%

 

$

6,971,860

 

$

101,004

 

5.75

%

 

$

6,720,732

 

$

97,692

 

5.78

%

Investments-taxable

 

1,710,394

 

 

14,404

 

3.34

%

 

 

1,737,273

 

 

15,321

 

3.50

%

 

 

1,932,839

 

 

16,413

 

3.38

%

Investments-nontaxable (1)

 

130,562

 

 

1,126

 

3.42

%

 

 

132,121

 

 

1,134

 

3.41

%

 

 

133,598

 

 

1,152

 

3.43

%

Total investments

 

1,840,956

 

 

15,530

 

3.35

%

 

 

1,869,394

 

 

16,455

 

3.49

%

 

 

2,066,437

 

 

17,565

 

3.38

%

Cash at Fed Reserve and other banks

 

262,724

 

 

2,646

 

4.00

%

 

 

249,646

 

 

2,790

 

4.43

%

 

 

144,908

 

 

1,851

 

5.08

%

Total earning assets

 

9,127,429

 

 

120,407

 

5.23

%

 

 

9,090,900

 

 

120,249

 

5.25

%

 

 

8,932,077

 

 

117,108

 

5.22

%

Other assets, net

 

802,153

 

 

 

 

 

 

809,775

 

 

 

 

 

 

793,566

 

 

 

 

Total assets

$

9,929,582

 

 

 

 

 

$

9,900,675

 

 

 

 

 

$

9,725,643

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

1,831,148

 

$

6,266

 

1.36

%

 

$

1,850,733

 

$

6,649

 

1.43

%

 

$

1,723,059

 

$

5,704

 

1.32

%

Savings deposits

 

2,848,212

 

 

11,651

 

1.62

%

 

 

2,855,750

 

 

12,965

 

1.80

%

 

 

2,699,084

 

 

12,666

 

1.87

%

Time deposits

 

1,097,570

 

 

9,284

 

3.36

%

 

 

1,107,646

 

 

9,587

 

3.43

%

 

 

1,111,024

 

 

11,518

 

4.12

%

Total interest-bearing deposits

 

5,776,930

 

 

27,201

 

1.87

%

 

 

5,814,129

 

 

29,201

 

1.99

%

 

 

5,533,167

 

 

29,888

 

2.15

%

Other borrowings

 

13,705

 

 

1

 

0.03

%

 

 

17,495

 

 

3

 

0.07

%

 

 

95,202

 

 

1,066

 

4.45

%

Junior subordinated debt

 

41,238

 

 

718

 

6.91

%

 

 

71,477

 

 

1,228

 

6.82

%

 

 

101,173

 

 

1,798

 

7.07

%

Total interest-bearing liabilities

 

5,831,873

 

 

27,920

 

1.90

%

 

 

5,903,101

 

 

30,432

 

2.05

%

 

 

5,729,542

 

 

32,752

 

2.27

%

Noninterest-bearing deposits

 

2,599,431

 

 

 

 

 

 

2,547,471

 

 

 

 

 

 

2,585,496

 

 

 

 

Other liabilities

 

165,974

 

 

 

 

 

 

160,568

 

 

 

 

 

 

169,083

 

 

 

 

Shareholders’ equity

 

1,332,304

 

 

 

 

 

 

1,289,535

 

 

 

 

 

 

1,241,522

 

 

 

 

Total liabilities and shareholders’ equity

$

9,929,582

 

 

 

 

 

$

9,900,675

 

 

 

 

 

$

9,725,643

 

 

 

 

Net interest rate spread (1) (2)

 

 

 

 

3.33

%

 

 

 

 

 

3.20

%

 

 

 

 

 

2.95

%

Net interest income and margin (1) (3)

 

 

$

92,487

 

4.02

%

 

 

 

$

89,817

 

3.92

%

 

 

 

$

84,356

 

3.76

%

(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 December 31, 2025, increased $2.7 million or 3.0% to $92.5 million compared to $89.8 million during the three months ended September 30, 2025. Net interest margin totaled 4.02% for the three months ended December 31, 2025, an increase of 10 basis points from the trailing quarter. The increase in net interest income is primarily attributed to a $2 million reduction in interest expense on deposits, led by $1.3 million in benefit from savings deposit accounts. The net interest margin was further enhanced by reductions in interest expense on junior subordinated debt of $0.5 million as compared to the trailing quarter, following the early extinguishment of subordinated debt with a recorded book value of $59.9 million during the third quarter. In addition, the average balance of noninterest-bearing deposits increased by $52.0 million from the three-month average for the period ended September 30, 2025.

As compared to the same quarter in the prior year, average loan yields decreased 1 basis points from 5.78% during the three months ended December 31, 2024, to 5.77% during the three months ended December 31, 2025. The accretion of discounts from acquired loans added 5 basis points to loan yields during both quarters ended December 31, 2025 and December 31, 2024, respectively. The cost of interest-bearing deposits decreased by 28 basis points between the quarter ended December 31, 2025, and the same quarter of the prior year. In addition, the average balance of noninterest-bearing deposits increased by $13.9 million from the three-month average for the period ended December 31, 2024.

For the quarter ended December 31, 2025, the ratio of average total noninterest-bearing deposits to total average deposits was 31.0%, as compared to 30.5% and 31.8% for the quarters ended September 30, 2025 and December 31, 2024, respectively.

 

Twelve months ended December 31, 2025

 

Twelve months ended December 31, 2024

(dollars in thousands)

Average

Balance

 

Income/

Expense

 

Yield/

Rate

 

Average

Balance

 

Income/

Expense

 

Yield/

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

Loans

$

6,913,337

 

$

397,308

 

5.75

%

 

$

6,747,072

 

$

390,491

 

5.79

%

Investments-taxable

 

1,787,112

 

 

60,398

 

3.38

%

 

 

2,008,823

 

 

68,434

 

3.41

%

Investments-nontaxable (1)

 

132,154

 

 

4,551

 

3.44

%

 

 

136,530

 

 

4,700

 

3.44

%

Total investments

 

1,919,266

 

 

64,949

 

3.38

%

 

 

2,145,353

 

 

73,134

 

3.41

%

Cash at Fed Reserve and other banks

 

216,083

 

 

9,365

 

4.33

%

 

 

80,439

 

 

4,098

 

5.09

%

Total earning assets

 

9,048,686

 

 

471,622

 

5.21

%

 

 

8,972,864

 

 

467,723

 

5.21

%

Other assets, net

 

806,100

 

 

 

 

 

 

784,462

 

 

 

 

Total assets

$

9,854,786

 

 

 

 

 

$

9,757,326

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

$

1,829,324

 

$

25,212

 

1.38

%

 

$

1,734,900

 

$

22,998

 

1.33

%

Savings deposits

 

2,808,876

 

 

49,060

 

1.75

%

 

 

2,677,726

 

 

49,028

 

1.83

%

Time deposits

 

1,106,959

 

 

39,033

 

3.53

%

 

 

999,143

 

 

41,100

 

4.11

%

Total interest-bearing deposits

 

5,745,159

 

 

113,305

 

1.97

%

 

 

5,411,769

 

 

113,126

 

2.09

%

Other borrowings

 

35,585

 

 

1,065

 

2.99

%

 

 

294,318

 

 

14,706

 

5.00

%

Junior subordinated debt

 

78,604

 

 

5,359

 

6.82

%

 

 

101,139

 

 

7,372

 

7.29

%

Total interest-bearing liabilities

 

5,859,348

 

 

119,729

 

2.04

%

 

 

5,807,226

 

 

135,204

 

2.33

%

Noninterest-bearing deposits

 

2,544,718

 

 

 

 

 

 

2,584,904

 

 

 

 

Other liabilities

 

163,761

 

 

 

 

 

 

165,056

 

 

 

 

Shareholders’ equity

 

1,286,959

 

 

 

 

 

 

1,200,140

 

 

 

 

Total liabilities and shareholders’ equity

$

9,854,786

 

 

 

 

 

$

9,757,326

 

 

 

 

Net interest rate spread (1) (2)

 

 

 

 

3.17

%

 

 

 

 

 

2.88

%

Net interest income and margin (1) (3)

 

 

$

351,893

 

3.89

%

 

 

 

$

332,519

 

3.71

%

(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 December 31, 2025, the Company's loan portfolio consisted of approximately $7.1 billion in outstanding principal with a weighted average coupon rate of 5.56%. During the three-month periods ending December 31, 2025, September 30, 2025, and December 31, 2024, the weighted average coupon on loan production in the quarter was 6.31%, 6.71% and 6.94%, respectively. Included in the December 31, 2025 total loans balance are adjustable rate loans totaling $4.7 billion, of which $1.0 billion are considered floating based on the Wall Street Prime index. In addition, the Company holds certain investment securities with fair values totaling $287.7 million which are subject to repricing on not less than a quarterly basis.

Asset Quality and Credit Loss Provisioning

During the three months ended December 31, 2025, the Company recorded a provision for credit losses of $3.0 million, as compared to $0.7 million during the trailing quarter, and $1.7 million during the fourth quarter of 2024.

 

Three months ended

 

Twelve months ended

(dollars in thousands)

December 31,
2025

 

September 30,
2025

 

December 31,
2024

 

December 31,
2025

 

December 31,
2024

Addition to allowance for credit losses

$

2,400

 

$

730

 

 

$

1,812

 

 

$

10,318

 

$

6,482

(Reduction) addition to reserve for unfunded loan commitments

 

600

 

 

(60

)

 

 

(110

)

 

 

1,745

 

 

150

Total provision for credit losses

$

3,000

 

$

670

 

 

$

1,702

 

 

$

12,063

 

$

6,632

 

Three months ended

 

Twelve months ended

(dollars in thousands)

December 31,
2025

 

September 30,
2025

 

December 31,
2024

 

December 31,
2025

 

December 31,
2024

Balance, beginning of period

$

124,571

 

 

$

124,455

 

 

$

123,760

 

 

$

125,366

 

 

$

121,522

 

Provision for credit losses

 

2,400

 

 

 

730

 

 

 

1,812

 

 

 

10,318

 

 

 

6,482

 

Loans charged-off

 

(1,345

)

 

 

(737

)

 

 

(722

)

 

 

(11,051

)

 

 

(4,051

)

Recoveries of previously charged-off loans

 

136

 

 

 

123

 

 

 

516

 

 

 

1,129

 

 

 

1,413

 

Balance, end of period

$

125,762

 

 

$

124,571

 

 

$

125,366

 

 

$

125,762

 

 

$

125,366

 

The allowance for credit losses (ACL) was $125.8 million or 1.77% of total loans as of December 31, 2025. The provision for credit losses on loans of $2.4 million recorded during the current quarter resulted, primarily, from an increase of approximately $1.6 million in reserves on collectively evaluated loans and $1.0 million to replenish specific reserves following net charge-offs on totaling $1.2 million.

The charge-offs incurred on collectively evaluated loans during the quarter ended December 31, 2025 were primarily concentrated within non-performing agriculture real-estate loans which had been identified by management as non-performing during previous quarters. Observable market valuations associated with agricultural real estate remain consistent as compared to the trailing quarter, while the stable water supply and improving commodity prices for the crops associated with collateral for these loans are reflected by improving cash flows. Management believes the provisioning for these individually analyzed relationships 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 $104.3 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 consistent or slightly improved as compared with the trailing period ended September 30, 2025. While this is aligned with the Company's direct experiences with borrowers, Management's proactive portfolio management policies and ongoing dialogue with borrowers suggests caution continues to be warranted. Actions by the Federal Reserve to further cut rates during 2026 or stimulative policies by the Federal government 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, political policy risks both domestic and international remain unresolved, which could quickly lead to further negative effects on domestic economic outcomes. The uncertainties related to the nature, duration and potential economic impact from tariffs, and their legal standing, continue to present challenges in correlating potential improvement of credit risks within the Company's loan portfolio. Therefore, 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 December 31, 2025

% of Loans Outstanding

 

As of September 30, 2025

% of Loans Outstanding

 

As of December 31, 2024

% of Loans Outstanding

Risk Rating:

 

 

 

 

 

 

 

 

Pass

$

6,874,545

 

96.7

%

 

$

6,785,679

 

96.8

%

 

$

6,539,560

 

96.7

%

Special Mention

 

109,768

 

1.5

%

 

 

89,352

 

1.3

%

 

 

110,935

 

1.6

%

Substandard

 

126,774

 

1.8

%

 

 

131,793

 

1.9

%

 

 

118,028

 

1.7

%

Total

$

7,111,087

 

100.0

%

 

$

7,006,824

 

100.0

%

 

$

6,768,523

 

100.0

%

 

 

 

 

 

 

 

 

 

Classified loans to total loans

 

1.78

%

 

 

 

1.88

%

 

 

 

1.74

%

 

Loans past due 30+ days to total loans

 

0.53

%

 

 

 

0.65

%

 

 

 

0.48

%

 

ACL to non-performing loans

 

195.84

%

 

 

 

189.76

%

 

 

 

284.30

%

 

The ratio of classified loans to total loans of 1.78% as of December 31, 2025, was down 10 basis points from September 30, 2025, but increased 4 basis points from the comparative quarter ended 2024. The change in classified loans outstanding as compared to the trailing quarter represented a decrease of approximately $5.0 million.

Loans past due 30 days or more decreased by $7.8 million during the quarter ended December 31, 2025, to $37.9 million, as compared to $45.7 million at September 30, 2025. The majority of loans identified as past due are well-secured by collateral, and approximately $14.5 million are less than 90 days delinquent.

Non-performing loans decreased by $1.4 million during the quarter ended December 31, 2025 to $64.2 million as compared to $65.6 million at September 30, 2025. The credit and collateral profiles of non-performing loans remain generally consistent with the trailing quarter. As noted previously, 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 proactive strategies within agriculture commercial real estate loans will further benefit from the continued improvement in agricultural commodity prices, stable water supply, and growing crop demand. Of the $64.2 million loans designated as non-performing as of December 31, 2025, approximately $36.7 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 December 31, 2025, other real estate owned consisted of 12 properties with a carrying value of approximately $6.2 million, as compared to 10 properties with a carrying value of $5.4 million at September 30, 2025. Non-performing assets of $70.5 million at December 31, 2025, represented 0.72% of total assets, a change from $71.1 million or 0.72% and $46.9 million or 0.48% as of September 30, 2025 and December 31, 2024, respectively.

Allocation of Credit Loss Reserves by Loan Type

 

As of December 31, 2025

 

As of September 30, 2025

 

As of December 31, 2024

(dollars in thousands)

Amount

 

% of Loans Outstanding

 

Amount

 

% of Loans Outstanding

 

Amount

 

% of Loans Outstanding

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

CRE - Non-Owner Occupied

$

40,300

 

1.61

%

 

$

41,179

 

1.68

%

 

$

37,229

 

1.60

%

CRE - Owner Occupied

 

12,712

 

1.25

%

 

 

11,930

 

1.15

%

 

 

15,747

 

1.64

%

Multifamily

 

17,327

 

1.60

%

 

 

15,706

 

1.50

%

 

 

15,913

 

1.55

%

Farmland

 

5,193

 

2.07

%

 

 

6,202

 

2.40

%

 

 

3,960

 

1.49

%

Total commercial real estate loans

 

75,532

 

1.56

%

 

 

75,017

 

1.57

%

 

 

72,849

 

1.59

%

Consumer:

 

 

 

 

 

 

 

 

 

 

 

SFR 1-4 1st Liens

 

11,045

 

1.31

%

 

 

11,022

 

1.30

%

 

 

14,227

 

1.65

%

SFR HELOCs and Junior Liens

 

13,264

 

3.07

%

 

 

12,362

 

3.07

%

 

 

10,411

 

2.86

%

Other

 

1,974

 

4.85

%

 

 

2,364

 

5.48

%

 

 

2,825

 

4.87

%

Total consumer loans

 

26,283

 

2.00

%

 

 

25,748

 

1.99

%

 

 

27,463

 

2.14

%

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

11,430

 

2.46

%

 

 

9,089

 

2.01

%

 

 

14,397

 

3.05

%

Construction

 

8,231

 

2.73

%

 

 

10,792

 

3.61

%

 

 

7,224

 

2.58

%

Agricultural Production

 

4,265

 

2.47

%

 

 

3,901

 

2.40

%

 

 

3,403

 

2.24

%

Leases

 

21

 

0.44

%

 

 

24

 

0.44

%

 

 

30

 

0.44

%

Allowance for credit losses

 

125,762

 

1.77

%

 

 

124,571

 

1.78

%

 

 

125,366

 

1.85

%

Reserve for unfunded loan commitments

 

7,745

 

 

 

 

7,145

 

 

 

 

6,000

 

 

Total allowance for credit losses

$

133,507

 

1.88

%

 

$

131,716

 

1.88

%

 

$

131,366

 

 

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 December 31, 2025, the unamortized discount associated with acquired loans totaled $14.9 million, which, when combined with the total allowance for credit losses above, represents 2.09% of total loans.

Non-interest Income

Three months ended

 

 

 

 

(dollars in thousands)

December 31, 2025

 

September 30, 2025

 

Change

 

% Change

ATM and interchange fees

$

6,352

 

 

$

6,493

 

 

$

(141

)

 

(2.2

)%

Service charges on deposit accounts

 

5,416

 

 

 

5,448

 

 

 

(32

)

 

(0.6

)%

Other service fees

 

1,432

 

 

 

1,485

 

 

 

(53

)

 

(3.6

)%

Mortgage banking service fees

 

429

 

 

 

430

 

 

 

(1

)

 

(0.2

)%

Change in value of mortgage servicing rights

 

(263

)

 

 

(105

)

 

 

(158

)

 

(150.5

)%

Total service charges and fees

 

13,366

 

 

 

13,751

 

 

 

(385

)

 

(2.8

)%

Increase in cash value of life insurance

 

862

 

 

 

871

 

 

 

(9

)

 

(1.0

)%

Asset management and commission income

 

1,970

 

 

 

1,932

 

 

 

38

 

 

2.0

%

Gain on sale of loans

 

432

 

 

 

327

 

 

 

105

 

 

32.1

%

Lease brokerage income

 

26

 

 

 

82

 

 

 

(56

)

 

(68.3

)%

Sale of customer checks

 

326

 

 

 

311

 

 

 

15

 

 

4.8

%

(Loss) gain on sale of investment securities

 

19

 

 

 

(2,124

)

 

 

2,143

 

 

(100.9

)%

(Loss) gain on marketable equity securities

 

11

 

 

 

26

 

 

 

(15

)

 

(57.7

)%

Other income

 

156

 

 

 

2,831

 

 

 

(2,675

)

 

(94.5

)%

Total other non-interest income

 

3,802

 

 

 

4,256

 

 

 

(454

)

 

(10.7

)%

Total non-interest income

$

17,168

 

 

$

18,007

 

 

$

(839

)

 

(4.7

)%

Total non-interest income decreased $0.8 million or 4.7% to $17.2 million during the three months ended December 31, 2025, compared to $18.0 million during the quarter ended September 30, 2025. Non-interest income activity during the quarter was generally flat as compared with the trailing quarter, after excluding the prior period non-recurring gain of approximately $2.5 million in other income related to the early extinguishment of $59.9 million in subordinated debt and losses of approximately $2.1 million from the sale of $28.5 million in investment securities.

 

Three months ended December 31,

 

 

 

 

(dollars in thousands)

 

2025

 

 

 

2024

 

 

Change

 

% Change

ATM and interchange fees

$

6,352

 

 

$

6,306

 

 

$

46

 

 

0.7

%

Service charges on deposit accounts

 

5,416

 

 

 

4,962

 

 

 

454

 

 

9.1

%

Other service fees

 

1,432

 

 

 

1,425

 

 

 

7

 

 

0.5

%

Mortgage banking service fees

 

429

 

 

 

434

 

 

 

(5

)

 

(1.2

)%

Change in value of mortgage servicing rights

 

(263

)

 

 

(12

)

 

 

(251

)

 

(2,091.7

)%

Total service charges and fees

 

13,366

 

 

 

13,115

 

 

 

251

 

 

1.9

%

Increase in cash value of life insurance

 

862

 

 

 

837

 

 

 

25

 

 

3.0

%

Asset management and commission income

 

1,970

 

 

 

1,584

 

 

 

386

 

 

24.4

%

Gain on sale of loans

 

432

 

 

 

334

 

 

 

98

 

 

29.3

%

Lease brokerage income

 

26

 

 

 

78

 

 

 

(52

)

 

(66.7

)%

Sale of customer checks

 

326

 

 

 

300

 

 

 

26

 

 

8.7

%

(Loss) gain on sale or exchange of investment securities

 

19

 

 

 

—

 

 

 

19

 

 

100.0

%

(Loss) gain on marketable equity securities

 

11

 

 

 

(81

)

 

 

92

 

 

(113.6

)%

Other income

 

156

 

 

 

108

 

 

 

48

 

 

44.4

%

Total other non-interest income

 

3,802

 

 

 

3,160

 

 

 

642

 

 

20.3

%

Total non-interest income

$

17,168

 

 

$

16,275

 

 

$

893

 

 

5.5

%

Non-interest income increased $0.9 million or 5.5% to $17.2 million during the three months ended December 31, 2025, compared to $16.3 million during the comparative quarter ended December 31, 2024. Growth in deposit related transactional activities during the quarter contributed to the elevated service fees, which increased by a combined $0.5 million as compared to the equivalent period in 2024. Further, elevated activity and volume of assets under management drove an increase of $0.4 million or 24.4% in asset management and commission income for the period ended December 31, 2025, as compared to the same period in 2024.

 

Twelve months ended December 31,

 

 

 

 

(dollars in thousands)

 

2025

 

 

 

2024

 

 

Change

 

% Change

ATM and interchange fees

$

25,541

 

 

$

25,319

 

 

$

222

 

 

0.9

%

Service charges on deposit accounts

 

20,967

 

 

 

19,451

 

 

 

1,516

 

 

7.8

%

Other service fees

 

5,761

 

 

 

5,301

 

 

 

460

 

 

8.7

%

Mortgage banking service fees

 

1,736

 

 

 

1,739

 

 

 

(3

)

 

(0.2

)%

Change in value of mortgage servicing rights

 

(560

)

 

 

(480

)

 

 

(80

)

 

(16.7

)%

Total service charges and fees

 

53,445

 

 

 

51,330

 

 

 

2,115

 

 

4.1

%

Increase in cash value of life insurance

 

3,395

 

 

 

3,257

 

 

 

138

 

 

4.2

%

Asset management and commission income

 

7,025

 

 

 

5,573

 

 

 

1,452

 

 

26.1

%

Gain on sale of loans

 

1,606

 

 

 

1,532

 

 

 

74

 

 

4.8

%

Lease brokerage income

 

224

 

 

 

455

 

 

 

(231

)

 

(50.8

)%

Sale of customer checks

 

1,300

 

 

 

1,216

 

 

 

84

 

 

6.9

%

(Loss) gain on sale or exchange of investment securities

 

(3,247

)

 

 

(43

)

 

 

(3,204

)

 

(7,451.2

)%

(Loss) gain on marketable equity securities

 

84

 

 

 

126

 

 

 

(42

)

 

(33.3

)%

Other income

 

4,506

 

 

 

961

 

 

 

3,545

 

 

368.9

%

Total other non-interest income

 

14,893

 

 

 

13,077

 

 

 

1,816

 

 

13.9

%

Total non-interest income

$

68,338

 

 

$

64,407

 

 

$

3,931

 

 

6.1

%

Non-interest income increased $3.9 million or 6.1% to $68.3 million during the twelve months ended December 31, 2025, compared to $64.4 million during the comparative twelve months ended December 31, 2024. As noted above increased balances and transaction volume in both deposits and assets under management, service charges and customer fees are elevated in the 2025 period, along with asset management and commission income. During 2025, other income increased by $3.5 million due to $2.5 million gain on early extinguishment of subordinated debt mentioned above, in addition to $1.2 million gain on life insurance benefits during the first quarter. As a partial offset, the Company incurred losses on the sale of investment securities totaling approximately $3.2 million, generating proceeds of $58.5 million.

Non-interest Expense

 

Three months ended

 

 

 

 

(dollars in thousands)

December 31, 2025

 

September 30, 2025

 

Change

 

% Change

Base salaries, net of deferred loan origination costs

$

25,048

 

$

25,340

 

$

(292

)

 

(1.2

)%

Incentive compensation

 

6,002

 

 

5,351

 

 

651

 

 

12.2

%

Benefits and other compensation costs

 

5,851

 

 

7,038

 

 

(1,187

)

 

(16.9

)%

Total salaries and benefits expense

 

36,901

 

 

37,729

 

 

(828

)

 

(2.2

)%

Occupancy

 

4,515

 

 

4,388

 

 

127

 

 

2.9

%

Data processing and software

 

5,363

 

 

4,838

 

 

525

 

 

10.9

%

Equipment

 

1,417

 

 

1,269

 

 

148

 

 

11.7

%

Intangible amortization

 

482

 

 

482

 

 

—

 

 

—

%

Advertising

 

774

 

 

647

 

 

127

 

 

19.6

%

ATM and POS network charges

 

1,981

 

 

1,911

 

 

70

 

 

3.7

%

Professional fees

 

1,375

 

 

1,842

 

 

(467

)

 

(25.4

)%

Telecommunications

 

476

 

 

503

 

 

(27

)

 

(5.4

)%

Regulatory assessments and insurance

 

1,319

 

 

1,282

 

 

37

 

 

2.9

%

Postage

 

382

 

 

353

 

 

29

 

 

8.2

%

Operational loss

 

413

 

 

544

 

 

(131

)

 

(24.1

)%

Courier service

 

575

 

 

577

 

 

(2

)

 

(0.3

)%

(Gain) loss on sale or acquisition of foreclosed assets

 

257

 

 

—

 

 

257

 

 

100.0

%

(Gain) loss on disposal of fixed assets

 

6

 

 

21

 

 

(15

)

 

(71.4

)%

Other miscellaneous expense

 

3,583

 

 

4,038

 

 

(455

)

 

(11.3

)%

Total other non-interest expense

 

22,918

 

 

22,695

 

 

223

 

 

1.0

%

Total non-interest expense

$

59,819

 

$

60,424

 

$

(605

)

 

(1.0

)%

Average full-time equivalent staff

 

1,135

 

 

1,154

 

 

(19

)

 

(1.6

)%

Total non-interest expense for the quarter ended December 31, 2025, decreased $0.6 million or 1.0% to $59.8 million as compared to $60.4 million during the trailing quarter ended September 30, 2025. Total salaries and benefits expense, the largest non-interest expense component, decreased by $0.8 million or 2.2%, in line with the overall reduction in FTEs during the period and the curtailment of benefits only allocated to those employed as of the last day of the fiscal year. Changes in other non-interest expense line items were mixed, but essentially flat on a net basis for the quarter ended December 31, 2025 with an increase of $0.2 million.

 

Three months ended December 31,

 

 

 

 

(dollars in thousands)

 

2025

 

 

2024

 

 

Change

 

% Change

Base salaries, net of deferred loan origination costs

$

25,048

 

$

24,583

 

 

$

465

 

 

1.9

%

Incentive compensation

 

6,002

 

 

4,568

 

 

 

1,434

 

 

31.4

%

Benefits and other compensation costs

 

5,851

 

 

6,175

 

 

 

(324

)

 

(5.2

)%

Total salaries and benefits expense

 

36,901

 

 

35,326

 

 

 

1,575

 

 

4.5

%

Occupancy

 

4,515

 

 

4,206

 

 

 

309

 

 

7.3

%

Data processing and software

 

5,363

 

 

5,493

 

 

 

(130

)

 

(2.4

)%

Equipment

 

1,417

 

 

1,364

 

 

 

53

 

 

3.9

%

Intangible amortization

 

482

 

 

1,030

 

 

 

(548

)

 

(53.2

)%

Advertising

 

774

 

 

1,118

 

 

 

(344

)

 

(30.8

)%

ATM and POS network charges

 

1,981

 

 

1,791

 

 

 

190

 

 

10.6

%

Professional fees

 

1,375

 

 

1,747

 

 

 

(372

)

 

(21.3

)%

Telecommunications

 

476

 

 

477

 

 

 

(1

)

 

(0.2

)%

Regulatory assessments and insurance

 

1,319

 

 

1,300

 

 

 

19

 

 

1.5

%

Postage

 

382

 

 

346

 

 

 

36

 

 

10.4

%

Operational loss

 

413

 

 

482

 

 

 

(69

)

 

(14.3

)%

Courier service

 

575

 

 

538

 

 

 

37

 

 

6.9

%

(Gain) loss on sale or acquisition of foreclosed assets

 

257

 

 

(61

)

 

 

318

 

 

(521.3

)%

(Gain) loss on disposal of fixed assets

 

6

 

 

7

 

 

 

(1

)

 

(14.3

)%

Other miscellaneous expense

 

3,583

 

 

4,611

 

 

 

(1,028

)

 

(22.3

)%

Total other non-interest expense

 

22,918

 

 

24,449

 

 

 

(1,531

)

 

(6.3

)%

Total non-interest expense

$

59,819

 

$

59,775

 

 

$

44

 

 

0.1

%

Average full-time equivalent staff

 

1,135

 

 

1,172

 

 

 

(37

)

 

(3.2

)%

Total non-interest expense increased $0.04 million or 0.1% to $59.8 million during the three months ended December 31, 2025, as compared to $59.8 million for the quarter ended December 31, 2024. Total salaries and benefits expense increased by $1.6 million or 4.5%, led by incentive compensation cost increases of $1.4 million, reflecting elevated levels of loan production and overall Bank performance during the fourth quarter of 2025, as compared to 2024. Other non-interest expense line items generally evidenced broad based incremental improvements for the quarter ended December 31, 2025, resulting in a net decrease of $1.5 million, led by other miscellaneous expense declines of $1.0 million, largely from fewer expenses related to real estate owned and business travel.

 

Twelve months ended December 31,

 

 

 

 

(dollars in thousands)

 

2025

 

 

2024

 

 

Change

 

% Change

Base salaries, net of deferred loan origination costs

$

101,546

 

$

96,862

 

 

$

4,684

 

 

4.8

%

Incentive compensation

 

20,614

 

 

16,897

 

 

 

3,717

 

 

22.0

%

Benefits and other compensation costs

 

27,611

 

 

26,822

 

 

 

789

 

 

2.9

%

Total salaries and benefits expense

 

149,771

 

 

140,581

 

 

 

9,190

 

 

6.5

%

Occupancy

 

17,180

 

 

16,411

 

 

 

769

 

 

4.7

%

Data processing and software

 

20,218

 

 

20,952

 

 

 

(734

)

 

(3.5

)%

Equipment

 

5,159

 

 

5,424

 

 

 

(265

)

 

(4.9

)%

Intangible amortization

 

1,961

 

 

4,120

 

 

 

(2,159

)

 

(52.4

)%

Advertising

 

3,433

 

 

3,851

 

 

 

(418

)

 

(10.9

)%

ATM and POS network charges

 

7,586

 

 

7,151

 

 

 

435

 

 

6.1

%

Professional fees

 

6,402

 

 

6,794

 

 

 

(392

)

 

(5.8

)%

Telecommunications

 

1,980

 

 

2,053

 

 

 

(73

)

 

(3.6

)%

Regulatory assessments and insurance

 

5,181

 

 

4,951

 

 

 

230

 

 

4.6

%

Postage

 

1,440

 

 

1,329

 

 

 

111

 

 

8.4

%

Operational loss

 

1,651

 

 

1,681

 

 

 

(30

)

 

(1.8

)%

Courier service

 

2,184

 

 

2,119

 

 

 

65

 

 

3.1

%

(Gain) loss on sale or acquisition of foreclosed assets

 

254

 

 

(73

)

 

 

327

 

 

(447.9

)%

(Gain) loss on disposal of fixed assets

 

117

 

 

19

 

 

 

98

 

 

515.8

%

Other miscellaneous expense

 

16,442

 

 

16,742

 

 

 

(300

)

 

(1.8

)%

Total other non-interest expense

 

91,188

 

 

93,524

 

 

 

(2,336

)

 

(2.5

)%

Total non-interest expense

$

240,959

 

$

234,105

 

 

$

6,854

 

 

2.9

%

Average full-time equivalent staff

 

1,164

 

 

1,170

 

 

 

(6

)

 

(0.5

)%

Non-interest expense increased $6.9 million or 2.9% to $241.0 million during the twelve months ended December 31, 2025, as compared to $234.1 million for the twelve months ended December 31, 2024. The largest component was salaries and benefits expense which increased $9.2 million or 6.5% to $149.8 million as compared to 2024, attributed to a combination of routine merit increases, increased incentive compensation from elevated levels of both loan and deposit production, and targeted strategic hiring. Other non-interest expense line items evidenced broad based but incremental decreases, driving a net decrease of $2.3 million year over year. For the year ended 2026, Management anticipates that total non-interest expenses will increase by approximately 5% as compared to the 2.9% experienced in the 2025 year.

Provision for Income Taxes

The Company’s effective tax rate was 27.8% for the quarter ended December 31, 2025, as compared to 26.8% for the quarter ended September 30, 2025, and 25.9% for the year ended December 31, 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.

Share Repurchase Program

The Company's Board of Directors approved the authorization to repurchase up to 2,000,000 shares of the Company’s common stock, no par value per share which approximates 6.2% of the currently outstanding common shares. The Company’s 2025 Share Repurchase Program replaces and supersedes the current 2021 Share Repurchase Program which has been terminated. Under the new program, management is authorized to repurchase shares at its discretion through Rule 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or otherwise in a manner that is intended to comply with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. The Board may suspend or discontinue the program at any time. Therefore, the total value of the shares to be purchased under the program is subject to change. Based on the closing price of the Company's stock on January 20, 2026, of $48.55, the repurchase of all shares authorized under the 2025 Share Repurchase Program would represent approximately $97.1 million in value.

About TriCo Bancshares

Established in 1975, Tri Counties Bank is a wholly-owned subsidiary of TriCo Bancshares (NASDAQ: TCBK) headquartered in Chico, California, providing services 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 U.S. administration, such as tariffs and reciprocal actions by other countries or regions and their ultimate impact on us, our customers, financial markets, and the overall U.S. and global economies; the uncertainty of rapidly evolving and changing U.S. trade policies and practices; inflation/deflation, interest rate, market and monetary fluctuations/volatility; increases in unemployment rates; 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; systemic or non-systemic bank failures or crises 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 and our ability to control expenses; 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; the impact of alternative currencies such as stablecoin and other cryptocurrencies on our ability to attract deposits; 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; potential changes to loss allocations between financial institutions and customers, including for losses incurred from the use of our products and services, including electronic payments and payment of checks, that were authorized by the customer but induced by fraud; 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- and fourth-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 effectiveness of our risk management framework and quantitative models; 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. 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

 

December 31,
2025

 

September 30,
2025

 

June 30,
2025

 

March 31,
2025

 

December 31,
2024

Revenue and Expense Data

 

 

 

 

 

 

 

 

 

Interest income

$

120,147

 

 

$

119,987

 

 

$

116,361

 

 

$

114,077

 

 

$

116,842

 

Interest expense

 

27,920

 

 

 

30,432

 

 

 

29,842

 

 

 

31,535

 

 

 

32,752

 

Net interest income

 

92,227

 

 

 

89,555

 

 

 

86,519

 

 

 

82,542

 

 

 

84,090

 

Provision for credit losses

 

3,000

 

 

 

670

 

 

 

4,665

 

 

 

3,728

 

 

 

1,702

 

Noninterest income:

 

 

 

 

 

 

 

 

 

Service charges and fees

 

13,366

 

 

 

13,751

 

 

 

13,650

 

 

 

12,678

 

 

 

13,115

 

(Loss) gain on sale or exchange of investment securities

 

19

 

 

 

(2,124

)

 

 

4

 

 

 

(1,146

)

 

 

—

 

Other income

 

3,783

 

 

 

6,380

 

 

 

3,436

 

 

 

4,541

 

 

 

3,160

 

Total noninterest income

 

17,168

 

 

 

18,007

 

 

 

17,090

 

 

 

16,073

 

 

 

16,275

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

36,901

 

 

 

37,729

 

 

 

38,286

 

 

 

36,855

 

 

 

35,326

 

Occupancy and equipment

 

5,932

 

 

 

5,657

 

 

 

5,389

 

 

 

5,361

 

 

 

5,570

 

Data processing and network

 

7,344

 

 

 

6,749

 

 

 

6,802

 

 

 

6,909

 

 

 

7,284

 

Other noninterest expense

 

9,642

 

 

 

10,289

 

 

 

10,654

 

 

 

10,460

 

 

 

11,595

 

Total noninterest expense

 

59,819

 

 

 

60,424

 

 

 

61,131

 

 

 

59,585

 

 

 

59,775

 

Total income before taxes

 

46,576

 

 

 

46,468

 

 

 

37,813

 

 

 

35,302

 

 

 

38,888

 

Provision for income taxes

 

12,942

 

 

 

12,449

 

 

 

10,271

 

 

 

8,939

 

 

 

9,854

 

Net income

$

33,634

 

 

$

34,019

 

 

$

27,542

 

 

$

26,363

 

 

$

29,034

 

Share Data

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

1.04

 

 

$

1.04

 

 

$

0.84

 

 

$

0.80

 

 

$

0.88

 

Diluted earnings per share

$

1.03

 

 

$

1.04

 

 

$

0.84

 

 

$

0.80

 

 

$

0.88

 

Dividends per share

$

0.36

 

 

$

0.36

 

 

$

0.33

 

 

$

0.33

 

 

$

0.33

 

Book value per common share

$

41.07

 

 

$

40.12

 

 

$

38.92

 

 

$

38.17

 

 

$

37.03

 

Tangible book value per common share (1)

$

31.52

 

 

$

30.61

 

 

$

29.40

 

 

$

28.73

 

 

$

27.60

 

Shares outstanding

 

32,334,974

 

 

 

32,506,880

 

 

 

32,550,264

 

 

 

32,892,488

 

 

 

32,970,425

 

Weighted average common shares

 

32,444,684

 

 

 

32,542,401

 

 

 

32,757,378

 

 

 

32,952,541

 

 

 

32,993,975

 

Weighted average diluted common shares

 

32,630,819

 

 

 

32,723,358

 

 

 

32,935,750

 

 

 

33,129,161

 

 

 

33,161,715

 

Credit Quality

 

 

 

 

 

 

 

 

 

Allowance for credit losses to gross loans

 

1.77

%

 

 

1.78

%

 

 

1.79

%

 

 

1.88

%

 

 

1.85

%

Loans past due 30 days or more

$

37,931

 

 

$

45,712

 

 

$

42,965

 

 

$

44,753

 

 

$

32,711

 

Total nonperforming loans

$

64,218

 

 

$

65,647

 

 

$

64,783

 

 

$

54,854

 

 

$

44,096

 

Total nonperforming assets

$

70,464

 

 

$

71,077

 

 

$

67,466

 

 

$

57,539

 

 

$

46,882

 

Loans charged-off

$

1,345

 

 

$

737

 

 

$

8,595

 

 

$

374

 

 

$

722

 

Loans recovered

$

136

 

 

$

123

 

 

$

102

 

 

$

768

 

 

$

516

 

Selected Financial Ratios

 

 

 

 

 

 

 

 

 

Return on average total assets

 

1.34

%

 

 

1.36

%

 

 

1.13

%

 

 

1.09

%

 

 

1.19

%

Return on average equity

 

10.02

%

 

 

10.47

%

 

 

8.68

%

 

 

8.54

%

 

 

9.30

%

Average yield on loans

 

5.77

%

 

 

5.75

%

 

 

5.76

%

 

 

5.71

%

 

 

5.78

%

Average yield on interest-earning assets

 

5.23

%

 

 

5.25

%

 

 

5.21

%

 

 

5.15

%

 

 

5.22

%

Average rate on interest-bearing deposits

 

1.87

%

 

 

1.99

%

 

 

1.97

%

 

 

2.06

%

 

 

2.15

%

Average cost of total deposits

 

1.29

%

 

 

1.39

%

 

 

1.37

%

 

 

1.43

%

 

 

1.46

%

Average cost of total deposits and other borrowings

 

1.29

%

 

 

1.38

%

 

 

1.37

%

 

 

1.46

%

 

 

1.50

%

Average rate on borrowings & subordinated debt

 

5.19

%

 

 

5.49

%

 

 

5.84

%

 

 

5.68

%

 

 

5.80

%

Average rate on interest-bearing liabilities

 

1.90

%

 

 

2.05

%

 

 

2.05

%

 

 

2.18

%

 

 

2.27

%

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

 

4.02

%

 

 

3.92

%

 

 

3.88

%

 

 

3.73

%

 

 

3.76

%

Loans to deposits

 

86.05

%

 

 

84.07

%

 

 

83.08

%

 

 

83.13

%

 

 

83.69

%

Efficiency ratio

 

54.68

%

 

 

56.18

%

 

 

59.00

%

 

 

60.42

%

 

 

59.56

%

Supplemental Loan Interest Income Data

 

 

 

 

 

 

 

 

 

Discount accretion on acquired loans

$

915

 

 

$

996

 

 

$

1,247

 

 

$

1,995

 

 

$

1,129

 

All other loan interest income (1)

$

101,316

 

 

$

100,008

 

 

$

97,448

 

 

$

93,383

 

 

$

96,563

 

Total loan interest income (1)

$

102,231

 

 

$

101,004

 

 

$

98,695

 

 

$

95,378

 

 

$

97,692

 

(1)

Non-GAAP measure

TriCo Bancshares—Condensed Consolidated Financial Data (unaudited)

(dollars in thousands, except per share data)

 

Balance Sheet Data

December 31,
2025

 

September 30,
2025

 

June 30,
2025

 

March 31,
2025

 

December 31,
2024

Cash and due from banks

$

157,014

 

 

$

298,820

 

 

$

314,268

 

 

$

308,250

 

 

$

144,956

 

Securities, available for sale, net

 

1,734,623

 

 

 

1,743,437

 

 

 

1,818,032

 

 

 

1,854,998

 

 

 

1,907,494

 

Securities, held to maturity, net

 

90,544

 

 

 

95,446

 

 

 

101,672

 

 

 

106,868

 

 

 

111,866

 

Restricted equity securities

 

17,250

 

 

 

17,250

 

 

 

17,250

 

 

 

17,250

 

 

 

17,250

 

Loans held for sale

 

2,695

 

 

 

2,785

 

 

 

1,577

 

 

 

2,028

 

 

 

709

 

Loans:

 

 

 

 

 

 

 

 

 

Commercial real estate

 

4,853,762

 

 

 

4,793,394

 

 

 

4,730,732

 

 

 

4,634,446

 

 

 

4,577,632

 

Consumer

 

1,314,610

 

 

 

1,293,909

 

 

 

1,288,691

 

 

 

1,279,878

 

 

 

1,281,059

 

Commercial and industrial

 

464,428

 

 

 

453,221

 

 

 

467,564

 

 

 

457,189

 

 

 

471,271

 

Construction

 

301,045

 

 

 

298,774

 

 

 

304,920

 

 

 

298,319

 

 

 

279,933

 

Agriculture production

 

172,494

 

 

 

162,338

 

 

 

161,457

 

 

 

144,588

 

 

 

151,822

 

Leases

 

4,748

 

 

 

5,188

 

 

 

5,629

 

 

 

6,354

 

 

 

6,806

 

Total loans, gross

 

7,111,087

 

 

 

7,006,824

 

 

 

6,958,993

 

 

 

6,820,774

 

 

 

6,768,523

 

Allowance for credit losses

 

(125,762

)

 

 

(124,571

)

 

 

(124,455

)

 

 

(128,423

)

 

 

(125,366

)

Total loans, net

 

6,985,325

 

 

 

6,882,253

 

 

 

6,834,538

 

 

 

6,692,351

 

 

 

6,643,157

 

Premises and equipment

 

69,724

 

 

 

70,509

 

 

 

70,092

 

 

 

70,475

 

 

 

70,287

 

Cash value of life insurance

 

137,253

 

 

 

136,391

 

 

 

135,520

 

 

 

134,678

 

 

 

140,149

 

Accrued interest receivable

 

33,652

 

 

 

32,126

 

 

 

32,534

 

 

 

32,536

 

 

 

34,810

 

Goodwill

 

304,442

 

 

 

304,442

 

 

 

304,442

 

 

 

304,442

 

 

 

304,442

 

Other intangible assets

 

4,471

 

 

 

4,953

 

 

 

5,435

 

 

 

5,918

 

 

 

6,432

 

Operating leases, right-of-use

 

25,505

 

 

 

25,917

 

 

 

22,158

 

 

 

22,806

 

 

 

23,529

 

Other assets

 

259,565

 

 

 

264,507

 

 

 

266,465

 

 

 

266,999

 

 

 

268,647

 

Total assets

$

9,822,063

 

 

$

9,878,836

 

 

$

9,923,983

 

 

$

9,819,599

 

 

$

9,673,728

 

Deposits:

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

2,594,032

 

 

$

2,544,306

 

 

$

2,559,788

 

 

$

2,539,109

 

 

$

2,548,613

 

Interest-bearing demand deposits

 

1,784,769

 

 

 

1,836,550

 

 

 

1,826,041

 

 

 

1,778,615

 

 

 

1,758,629

 

Savings deposits

 

2,775,058

 

 

 

2,847,168

 

 

 

2,879,212

 

 

 

2,777,840

 

 

 

2,657,849

 

Time certificates

 

1,110,042

 

 

 

1,106,437

 

 

 

1,110,768

 

 

 

1,109,768

 

 

 

1,122,485

 

Total deposits

 

8,263,901

 

 

 

8,334,461

 

 

 

8,375,809

 

 

 

8,205,332

 

 

 

8,087,576

 

Accrued interest payable

 

8,795

 

 

 

8,241

 

 

 

10,172

 

 

 

9,685

 

 

 

11,501

 

Operating lease liability

 

27,278

 

 

 

27,683

 

 

 

23,965

 

 

 

24,657

 

 

 

25,437

 

Other liabilities

 

141,137

 

 

 

145,869

 

 

 

128,162

 

 

 

131,478

 

 

 

137,506

 

Other borrowings

 

11,713

 

 

 

17,039

 

 

 

17,788

 

 

 

91,706

 

 

 

89,610

 

Junior subordinated debt

 

41,238

 

 

 

41,238

 

 

 

101,264

 

 

 

101,222

 

 

 

101,191

 

Total liabilities

 

8,494,062

 

 

 

8,574,531

 

 

 

8,657,160

 

 

 

8,564,080

 

 

 

8,452,821

 

Common stock

 

682,362

 

 

 

685,594

 

 

 

685,489

 

 

 

692,500

 

 

 

693,462

 

Retained earnings

 

740,244

 

 

 

723,668

 

 

 

702,690

 

 

 

693,383

 

 

 

679,907

 

Accumulated other comprehensive loss, net of tax

 

(94,605

)

 

 

(104,957

)

 

 

(121,356

)

 

 

(130,364

)

 

 

(152,462

)

Total shareholders’ equity

$

1,328,001

 

 

$

1,304,305

 

 

$

1,266,823

 

 

$

1,255,519

 

 

$

1,220,907

 

Quarterly Average Balance Data

 

 

 

 

 

 

 

 

 

Average loans

$

7,023,749

 

 

$

6,971,860

 

 

$

6,878,186

 

 

$

6,776,188

 

 

$

6,720,732

 

Average interest-earning assets

$

9,127,429

 

 

$

9,090,900

 

 

$

8,973,959

 

 

$

9,007,447

 

 

$

8,932,077

 

Average total assets

$

9,929,582

 

 

$

9,900,675

 

 

$

9,778,834

 

 

$

9,808,216

 

 

$

9,725,643

 

Average deposits

$

8,376,361

 

 

$

8,361,600

 

 

$

8,222,982

 

 

$

8,195,793

 

 

$

8,118,663

 

Average borrowings and subordinated debt

$

54,943

 

 

$

88,972

 

 

$

123,943

 

 

$

190,666

 

 

$

196,375

 

Average total equity

$

1,332,304

 

 

$

1,289,535

 

 

$

1,273,092

 

 

$

1,251,994

 

 

$

1,241,522

 

Capital Ratio Data

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

15.1

%

 

 

15.1

%

 

 

15.6

%

 

 

15.8

%

 

 

15.7

%

Tier 1 capital ratio

 

13.8

%

 

 

13.9

%

 

 

13.9

%

 

 

14.1

%

 

 

14.0

%

Tier 1 common equity ratio

 

13.3

%

 

 

13.4

%

 

 

13.1

%

 

 

13.3

%

 

 

13.2

%

Tier 1 leverage ratio

 

11.8

%

 

 

11.7

%

 

 

11.8

%

 

 

11.7

%

 

 

11.7

%

Tangible capital ratio (1)

 

10.7

%

 

 

10.4

%

 

 

10.0

%

 

 

9.9

%

 

 

9.7

%

(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

 

Twelve months ended

(dollars in thousands)

December 31,
2025

 

September 30,
2025

 

December 31,
2024

 

December 31,
2025

 

December 31,
2024

Net interest margin

 

 

 

 

 

 

 

 

 

Acquired loans discount accretion, net:

 

 

 

 

 

 

 

 

 

Amount (included in interest income)

$

915

 

 

$

996

 

 

$

1,129

 

 

$

5,153

 

 

$

4,329

 

Effect on average loan yield

 

0.05

%

 

 

0.06

%

 

 

0.06

%

 

 

0.08

%

 

 

0.07

%

Effect on net interest margin (FTE)

 

0.04

%

 

 

0.04

%

 

 

0.05

%

 

 

0.06

%

 

 

0.05

%

Net interest margin (FTE)

 

4.02

%

 

 

3.92

%

 

 

3.76

%

 

 

3.89

%

 

 

3.71

%

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

 

3.98

%

 

 

3.88

%

 

 

3.71

%

 

 

3.83

%

 

 

3.66

%

 

Three months ended

 

Twelve months ended

(dollars in thousands)

December 31,
2025

 

September 30,
2025

 

December 31,
2024

 

December 31,
2025

 

December 31,
2024

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

33,634

 

 

$

34,019

 

 

$

29,034

 

 

$

121,558

 

 

$

114,868

 

Exclude provision for income taxes

 

12,942

 

 

 

12,449

 

 

 

9,854

 

 

 

44,601

 

 

 

40,236

 

Exclude provision for credit losses

 

3,000

 

 

 

670

 

 

 

1,702

 

 

 

12,063

 

 

 

6,632

 

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

$

49,576

 

 

$

47,138

 

 

$

40,590

 

 

$

178,222

 

 

$

161,736

 

 

 

 

 

 

 

 

 

 

 

Average assets (GAAP)

$

9,929,582

 

 

$

9,900,675

 

 

$

9,725,643

 

 

$

9,854,786

 

 

$

9,757,326

 

Average equity (GAAP)

$

1,332,304

 

 

$

1,289,535

 

 

$

1,241,522

 

 

$

1,286,959

 

 

$

1,200,140

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (GAAP) (annualized)

 

1.34

%

 

 

1.36

%

 

 

1.19

%

 

 

1.23

%

 

 

1.18

%

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

 

1.98

%

 

 

1.89

%

 

 

1.66

%

 

 

1.81

%

 

 

1.66

%

Return on average equity (GAAP) (annualized)

 

10.02

%

 

 

10.47

%

 

 

9.30

%

 

 

9.45

%

 

 

9.57

%

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

 

14.76

%

 

 

14.50

%

 

 

13.01

%

 

 

13.85

%

 

 

13.48

%

 

Three months ended

 

Twelve months ended

(dollars in thousands)

December 31,
2025

 

September 30,
2025

 

December 31,
2024

 

December 31,
2025

 

December 31,
2024

Return on tangible common equity

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

$

1,332,304

 

 

$

1,289,535

 

 

$

1,241,522

 

 

$

1,286,959

 

 

$

1,200,140

 

Exclude average goodwill

 

304,442

 

 

 

304,442

 

 

 

304,442

 

 

 

304,442

 

 

 

304,442

 

Exclude average other intangibles

 

4,712

 

 

 

5,259

 

 

 

7,085

 

 

 

5,498

 

 

 

8,592

 

Average tangible common equity (Non-GAAP)

$

1,023,150

 

 

$

979,834

 

 

$

929,995

 

 

$

977,019

 

 

$

887,106

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

33,634

 

 

$

34,019

 

 

$

29,034

 

 

$

121,558

 

 

$

114,868

 

Exclude amortization of intangible assets, net of tax effect

 

339

 

 

 

339

 

 

 

725

 

 

 

1,381

 

 

 

2,900

 

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

$

33,973

 

 

$

34,358

 

 

$

29,759

 

 

$

122,939

 

 

$

117,768

 

 

 

 

 

 

 

 

 

 

 

Return on average equity (GAAP) (annualized)

 

10.02

%

 

 

10.47

%

 

 

9.30

%

 

 

9.45

%

 

 

9.57

%

Return on average tangible common equity (Non-GAAP)

 

13.17

%

 

 

13.91

%

 

 

12.73

%

 

 

12.58

%

 

 

13.28

%

 

Three months ended

(dollars in thousands)

December 31,
2025

 

September 30,
2025

 

June 30,
2025

 

March 31,
2025

 

December 31,
2024

Tangible shareholders' equity to tangible assets

 

 

 

 

 

 

 

 

 

Shareholders' equity (GAAP)

$

1,328,001

 

 

$

1,304,305

 

 

$

1,266,823

 

 

$

1,255,519

 

 

$

1,220,907

 

Exclude goodwill and other intangible assets, net

 

308,913

 

 

 

309,395

 

 

 

309,877

 

 

 

310,360

 

 

 

310,874

 

Tangible shareholders' equity (Non-GAAP)

$

1,019,088

 

 

$

994,910

 

 

$

956,946

 

 

$

945,159

 

 

$

910,033

 

 

 

 

 

 

 

 

 

 

 

Total assets (GAAP)

$

9,822,063

 

 

$

9,878,836

 

 

$

9,923,983

 

 

$

9,819,599

 

 

$

9,673,728

 

Exclude goodwill and other intangible assets, net

 

308,913

 

 

 

309,395

 

 

 

309,877

 

 

 

310,360

 

 

 

310,874

 

Total tangible assets (Non-GAAP)

$

9,513,150

 

 

$

9,569,441

 

 

$

9,614,106

 

 

$

9,509,239

 

 

$

9,362,854

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity to total assets (GAAP)

 

13.52

%

 

 

13.20

%

 

 

12.77

%

 

 

12.79

%

 

 

12.62

%

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

 

10.71

%

 

 

10.40

%

 

 

9.95

%

 

 

9.94

%

 

 

9.72

%

 

Three months ended

(dollars in thousands)

December 31,
2025

 

September 30,
2025

 

June 30,
2025

 

March 31,
2025

 

December 31,
2024

Tangible common shareholders' equity per share

 

 

 

 

 

 

 

 

 

Tangible shareholders' equity (Non-GAAP)

$

1,019,088

 

$

994,910

 

$

956,946

 

$

945,159

 

$

910,033

 

 

 

 

 

 

 

 

 

 

Common shares outstanding at end of period

 

32,334,974

 

 

32,506,880

 

 

32,550,264

 

 

32,892,488

 

 

32,970,425

 

 

 

 

 

 

 

 

 

 

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

$

41.07

 

$

40.12

 

$

38.92

 

$

38.17

 

$

37.03

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

$

31.52

 

$

30.61

 

$

29.40

 

$

28.73

 

$

27.60

 

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

Source: TriCo Bancshares