TriCo Bancshares (TCBK) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $29.0 million, up from $24.9 million in Q2 2023 and 4.6% sequentially; diluted EPS was $0.87, up from $0.75 a year ago.

• Pre-tax pre-provision ROAA was 1.63% and ROAE was 13.19% for Q2 2024, while return on average assets was 1.19% and return on average equity was 9.99%.

• Deposit balances rose $62.6 million (3.1% annualized) from the prior quarter; loan-to-deposit ratio decreased to 83.8%.

• Book value per share grew to $35.62, and tangible book value per share reached $26.13 at June 30, 2024.

• Management highlighted stable credit trends, proactive risk management, and continued focus on core deposit growth.

Financial highlights

• Net interest income for Q2 2024 was $82.0 million, down from $88.6 million in Q2 2023; net interest margin (FTE) held steady at 3.68% sequentially but declined from 3.96% a year ago.

• Provision for credit losses was $0.4 million in Q2 2024, down from $9.7 million in Q2 2023.

• Noninterest income was $15.9 million, up slightly year-over-year; noninterest expense decreased 4.7% to $58.3 million.

• Efficiency ratio was 59.61% for Q2 2024, up from 57.36% in Q1 2024 and 58.69% in Q2 2023.

• Loans outstanding were $6.74 billion, and total deposits were $8.05 billion at quarter end.

Outlook and guidance

• Management expects net interest income to improve in the second half of 2024, with strategies focused on deposit growth and borrowing reductions.

• Continued focus on scaling efficiently as assets approach $10 billion, balancing regulatory and shareholder expectations.

• Ongoing emphasis on acquiring new customer relationships and expanding services to existing clients.

• No brokered deposits were used; borrowing lines from FHLB are expected to support asset strategies through 2024 and into 2025.

• The company remains focused on maintaining strong capital and liquidity positions, with capital ratios well above regulatory minimums.