TriCo Bancshares (TCBK) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $26.4 million, or $0.80 per diluted share, down from $29.0 million and $0.88 in the prior quarter and $27.7 million and $0.83 in Q1 2024.

• Loan balances grew by $52.3 million (3.1% annualized) from the prior quarter and $20.1 million (0.3%) year-over-year; deposit balances increased $117.8 million (5.8% annualized) from the prior quarter and $217.7 million (2.7%) year-over-year.

• Net interest margin (FTE) was 3.73%, up 5 bps year-over-year but down 3 bps sequentially; net interest income (FTE) was $82.8 million.

• Efficiency ratio increased to 60.42% in Q1 2025 from 57.36% in Q1 2024 and 59.56% in the prior quarter.

• Completed a Community Reinvestment Act examination with an Outstanding rating.

Financial highlights

• Return on average assets was 1.09% (down from 1.13% in Q1 2024 and 1.19% prior quarter); return on average equity was 8.54% (down from 9.50% in Q1 2024 and 9.30% prior quarter).

• Allowance for credit losses to total loans was 1.88% at March 31, 2025, up from 1.85% prior quarter and 1.83% a year ago.

• Non-performing assets to total assets rose to 0.59% from 0.48% prior quarter and 0.37% a year ago.

• Book value per share rose to $38.17, and tangible book value per share to $28.73 at quarter-end.

• Non-interest income grew 1.9% to $16.1 million, while non-interest expense increased 5.5% to $59.6 million year-over-year.

Outlook and guidance

• Management expects continued strong capital ratios and liquidity, with no reliance on brokered deposits or FRB borrowing facilities.

• Focus remains on deploying excess liquidity into higher-yielding assets and organic deposit growth to support loan growth.

• Management expects incremental increases in earning asset yields and reductions in funding costs as rate cuts work through the system.

• Quarterly dividend maintained at $0.33 per share; shareholder dividends are expected to continue, subject to board discretion.

• Economic indicators are generally improving, but management remains cautious due to ongoing macroeconomic and geopolitical risks.