Trico Bancshares / (TCBK) Stock Analysis and Metrics

Trico Bancshares

NASDAQ: TCBK

$58.12 ▼ -1.16 (-1.96%)

At close: Jul 24, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap1.89 Bn

P/E14.66

P/S35.04

Div. Yield0.02

Total Debt (Qtr)41.24 Mn

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About

TriCo Bancshares is a registered bank holding company under the Bank Holding Company Act of 1956, as amended. TriCo's principal business is to serve as the holding company for our wholly-owned subsidiary, Tri Counties Bank, a California-chartered commercial bank. TriCo is a California corporation and our common stock is traded on the Nasdaq Global Select Market under the trading symbol "TCBK". The Company and the Bank are headquartered in Chico, California. As a bank holding company, TriCo is subject to the supervision of the Board of Governors of the Federal Reserve System under the BHC Act. The Bank is subject to the supervision of the California Department of Financial Protection & Innovation and the Federal Deposit Insurance Corporation. TriCo has five capital trusts, which are all wholly-owned trust subsidiaries formed for the purpose of issuing trust preferred securities and lending the proceeds to TriCo. Additional information concerning the Company can be found on our website at www.tcbk.com.

TriCo Bancshares generates revenue primarily through its wholly-owned subsidiary, Tri Counties Bank, which offers an extensive and competitive breadth of consumer, small business and commercial banking services. The Bank accepts demand, savings and time deposits and makes small business, commercial, real estate, and consumer loans, as well as providing a range of treasury management services and other customary banking services including safe deposit boxes at some branches. Brokerage services are provided at the Bank’s offices by Tri Counties Wealth Management Advisors through the Bank’s arrangement with Raymond James Financial Services, Inc. The Bank also offers advanced online and mobile banking, a shared nationwide network of over 40,000 surcharge-free ATMs, and bankers available by phone 7 days per week. The majority of the Bank’s loans are direct loans made to individuals and businesses in California where its branches or business lending centers are located. At December 31, 2024, the Bank’s consumer loans net of deferred fees outstanding were $1.3 billion, commercial and industrial loans outstanding were $471.3 million, real estate construction loans of $279.9 million, and commercial real estate loans were $4.6 billion of total loans. Most of the Bank’s deposits are from individuals and business-related sources. No single person or group of persons provides a material portion of the Bank’s deposits, nor is a material portion of the Bank’s loans concentrated within a single industry or group of related industries.

The company operates through the following segments:

• Tri Counties Bank: This segment provides a breadth of personal, small business and commercial financial services including accepting demand, savings and time deposits and making small business, commercial, real estate, and consumer loans. The Bank offers a variety of banking and financial services to both personal, small business and commercial customers. In many instances the owners or stakeholders of the business and commercial customers are also personal customers. The industries that we serve are diverse in both number and type and include, but are not limited to, manufacturing, real estate development, retail, wholesale, transportation, agriculture, commerce, oil & gas, and professional services. The Bank provides a range of treasury management services and other customary banking services including safe deposit boxes at some branches. Brokerage services are provided at the Bank’s offices by Tri Counties Wealth Management Advisors through the Bank’s arrangement with Raymond James Financial Services, Inc. The Bank offers advanced online and mobile banking, a shared nationwide network of over 40,000 surcharge-free ATMs, and bankers available by phone 7 days per week. The Bank focuses on relationships and personal contact, emphasizing its Service with Solutions®. The Bank takes real estate, listed and unlisted securities, savings and time deposits, automobiles, machinery, equipment, inventory, accounts receivable and notes receivable secured by property as collateral for loans.

TriCo Bancshares operates in a highly competitive banking environment in California, where it competes with national and regional banks, savings institutions, credit unions, brokerage firms and financial markets for funds. The banking business in California generally is highly competitive with respect to both loans and deposits. It is dominated by a relatively small number of national and regional banks with many offices operating over a wide geographic area. The Bank competes for available funds with money market instruments and mutual funds. Mutual funds are also a major source of competition for savings dollars. The Bank also increasingly competes with financial technology or “fintech” companies for loans and other financial services customers. To compete effectively, the Bank relies substantially on local promotional activity, personal contacts by its officers, directors, employees and shareholders, extended hours, personalized service and its reputation in the communities it services. The Bank’s competitive advantages include its focus on relationships and personal contact, its Service with Solutions® approach, and its deep community ties throughout California.

Tri Counties Bank serves a diverse customer base consisting of individuals, small businesses and commercial customers across various industries in California. The Bank’s customer base includes personal customers, small business owners and stakeholders of commercial enterprises, many of whom are also personal customers. The industries served include manufacturing, real estate development, retail, wholesale, transportation, agriculture, commerce, oil & gas, and professional services. The majority of the Bank’s loans are direct loans made to individuals and businesses in California where its branches or business lending centers are located. Most of the Bank’s deposits are from individuals and business-related sources. No single person or group of persons provides a material portion of the Bank’s deposits.

Investment Thesis

▲ Bull case

TriCo Bancshares is demonstrating genuine structural operating leverage that the market may be underestimating as evidenced by the efficiency ratio improving to 54.55% from 60.42% year-over-year. Management explicitly stated that future revenue growth will outpace expense growth leading to positive operating leverage and PPNR expansion indicating this is not merely temporary cost cutting but reflects scalability in their business model. The improvement occurred despite typical first-quarter increases in benefits costs from benefit plan renewals and payroll taxes suggesting underlying operational efficiency gains. This operating leverage position should allow profits to grow faster than revenue as they continue to leverage technology across their 75 plus branch network and benefit from economies of scale in their California focused operations.
The bank's net interest margin resilience in a declining rate environment represents an underappreciated strength with the fully tax-equivalent net interest margin expanding to 4.07% up 34 basis points year-over-year despite Federal Reserve rate cuts. This expansion was achieved through effective asset/liability management including customized deposit pricing strategies covering $1.0 billion of deposits at a 3.06% weighted average rate. Management's expectation of incremental improvement through 2026 given the yield curve slope suggests further margin expansion potential particularly as they continue to optimize their $1.87 billion investment portfolio and benefit from the repricing of adjustable rate loans totaling $4.7 billion of which $967.9 million are floating based on Wall Street Prime. The net interest rate spread improved by 8 basis points to 3.41% for the quarter ended March 31 2026 as compared to the trailing quarter while the net interest margin improved by 5 basis points to 4.07% over the same period demonstrating ongoing positive momentum in core banking profitability.
TriCo's deposit franchise strength provides a durable competitive advantage that the market may not be fully valuing with total deposits growing 6.8% annualized in the quarter and 2.4% year-over-year while maintaining a strong 30.6% ratio of noninterest-bearing deposits to total deposits. This low-cost funding base achieved entirely through organic deposit growth no brokered deposits used in 2025 or 2026 offers stability and margin expansion potential that wholesale-funded competitors lack. The improvement in loan-to-deposit ratio to 84.1% from 83.1% year-over-year indicates better funding efficiency and their expansion in high-growth markets like the Bay Area noted in occupancy expense increases positions them to capture additional core deposits as economic activity continues. Deposit balances increased by $139.7 million or 6.8% annualized during the period ended March 31 2026 reflecting strong core deposit gathering capability that supports loan growth and reduces reliance on more expensive wholesale funding sources.
The company's capital deployment confidence signals underlying intrinsic value strength that may be underestimated by the market demonstrated by the combination of consistent dividend growth 9.1% year-over-year increase to $0.36 per share representing the 147th consecutive quarterly dividend and active share repurchases $21.6 million in the quarter. With tangible book value per share growing to $31.82 up from $31.52 quarter-over-quarter and a strong Tier 1 leverage ratio of 11.9% they have ample capacity to continue returning capital while supporting the 3.6% year-over-year loan growth. This capital return policy combined with expanding pre-tax pre-provision return on average assets to 2.01% up from 1.61% year-over-year suggests management believes the stock is trading below its fundamental value. The increase in book value per share to $41.49 from $41.07 quarter-over-quarter further demonstrates tangible value creation that supports sustainable shareholder returns.

TriCo Bancshares is demonstrating genuine structural operating leverage that the market may be underestimating as evidenced by the efficiency ratio improving to 54.55% from 60.42% year-over-year. Management explicitly stated that future revenue growth will outpace expense growth leading to positive operating leverage and PPNR expansion indicating this is not merely temporary cost cutting but reflects scalability in their business model. The improvement occurred despite typical first-quarter increases in benefits costs from benefit plan renewals and payroll taxes suggesting underlying operational efficiency gains. This operating leverage position should allow profits to grow faster than revenue as they continue to leverage technology across their 75 plus branch network and benefit from economies of scale in their California focused operations.
The bank's net interest margin resilience in a declining rate environment represents an underappreciated strength with the fully tax-equivalent net interest margin expanding to 4.07% up 34 basis points year-over-year despite Federal Reserve rate cuts. This expansion was achieved through effective asset/liability management including customized deposit pricing strategies covering $1.0 billion of deposits at a 3.06% weighted average rate. Management's expectation of incremental improvement through 2026 given the yield curve slope suggests further margin expansion potential particularly as they continue to optimize their $1.87 billion investment portfolio and benefit from the repricing of adjustable rate loans totaling $4.7 billion of which $967.9 million are floating based on Wall Street Prime. The net interest rate spread improved by 8 basis points to 3.41% for the quarter ended March 31 2026 as compared to the trailing quarter while the net interest margin improved by 5 basis points to 4.07% over the same period demonstrating ongoing positive momentum in core banking profitability.
TriCo's deposit franchise strength provides a durable competitive advantage that the market may not be fully valuing with total deposits growing 6.8% annualized in the quarter and 2.4% year-over-year while maintaining a strong 30.6% ratio of noninterest-bearing deposits to total deposits. This low-cost funding base achieved entirely through organic deposit growth no brokered deposits used in 2025 or 2026 offers stability and margin expansion potential that wholesale-funded competitors lack. The improvement in loan-to-deposit ratio to 84.1% from 83.1% year-over-year indicates better funding efficiency and their expansion in high-growth markets like the Bay Area noted in occupancy expense increases positions them to capture additional core deposits as economic activity continues. Deposit balances increased by $139.7 million or 6.8% annualized during the period ended March 31 2026 reflecting strong core deposit gathering capability that supports loan growth and reduces reliance on more expensive wholesale funding sources.
The company's capital deployment confidence signals underlying intrinsic value strength that may be underestimated by the market demonstrated by the combination of consistent dividend growth 9.1% year-over-year increase to $0.36 per share representing the 147th consecutive quarterly dividend and active share repurchases $21.6 million in the quarter. With tangible book value per share growing to $31.82 up from $31.52 quarter-over-quarter and a strong Tier 1 leverage ratio of 11.9% they have ample capacity to continue returning capital while supporting the 3.6% year-over-year loan growth. This capital return policy combined with expanding pre-tax pre-provision return on average assets to 2.01% up from 1.61% year-over-year suggests management believes the stock is trading below its fundamental value. The increase in book value per share to $41.49 from $41.07 quarter-over-quarter further demonstrates tangible value creation that supports sustainable shareholder returns.

▼ Bear case

Quarterly deterioration in asset quality metrics presents risks that the market may be ignoring with classified loans to total loans increasing from 1.78% to 2.00% loans past due 30+ days rising from 0.53% to 0.69% and non-performing loans increasing from $64.2 million to $69.5 million quarter-over-quarter. Management's disclosure that the $2.3 million in reserves for individually evaluated loans was concentrated within the commercial real estate portfolio on credits that were noted as having declining cash flows based on recent financial data suggests emerging stress in their CRE portfolio. While loan payments remain current this concentration in a sector with weakening cash flows could lead to higher charge-offs if economic conditions deteriorate particularly given their significant exposure to commercial real estate loans totaling $4.9 billion. The ratio of classified loans to total loans of 2.00% as of March 31 2026 was an increase of 22 basis points from December 31 2025 and 6 basis points from the comparative quarter ended 2025 indicating a negative trend in credit quality metrics that warrants closer scrutiny.
The quarterly decline in total loans of $42.9 million 2.4% annualized contradicts management's optimistic economic outlook and raises concerns about sustainable loan growth momentum. While they attribute this to timing differences origination volume contracted from the trailing quarter but expanded by comparison with the same quarter of prior years the simultaneous increase in loan payoffs/repayments to $442.2 million up from $418.1 million in the prior quarter suggests potential refinancing activity or borrower deleveraging. This trend could persist if interest rate volatility continues or if borrowers become more cautious about taking on new debt potentially constraining the bank's ability to grow its interest-earning asset base. During the quarter gross loan originations/draws totaled approximately $388.7 million while gross payoffs/repayments of loans totaled $442.2 million highlighting a net outflow in loan activity that contrasts with the 3.6% year-over-year loan growth figure and suggests underlying weakness in new loan generation.
The sustainability of net interest margin expansion is questionable given that part of the improvement relies on declining benefits from acquired loan discount accretion which added only 8 basis points to loan yields in Q1 2026 versus 12 basis points in Q1 2025. As this accretion benefit diminishes over the life of acquired loans the bank will need to generate margin expansion purely through new loan pricing and deposit cost management which may become more challenging in a lower rate environment. The yield on loans increased just 1 basis point from the trailing quarter and 7 basis points year-over-year to 5.78% suggesting limited pricing power for new loans while their ability to further reduce deposit costs may be constrained as they've already customized pricing for $1.0 billion of deposits. The accretion of discounts from acquired loans added 8 basis points to loan yields during the quarter ended March 31 2026 as compared to adding 12 basis points for the quarter ended March 31 2025 indicating a diminishing tailwind to net interest margin that will need to be replaced by organic sources of margin improvement.
Increasing tax pressure represents an underappreciated risk that could constrain future earnings growth with the provision for income taxes rising 36.4% year-over-year to $12.2 million significantly outpacing pre-tax income growth. This caused the effective tax rate to increase to 26.6% from 25.3% in the prior year quarter and if this trend continues it could dampen net income expansion even if pre-tax performance improves. The bank's ability to benefit from tax credits and non-taxable revenue sources appears to be diminishing relative to growing pre-tax earnings as evidenced by the growing gap between their effective tax rate 26.6% and the federal and state blended statutory rate of approximately 29.6% suggesting fewer tax advantages available to offset their tax burden as earnings grow. Provision for income taxes was $12.196 million for the quarter ended March 31 2026 compared to $8.939 million for the quarter ended March 31 2025 representing a substantial increase that absorbed a meaningful portion of pre-tax income growth and could become a persistent headwind to bottom line expansion.

Quarterly deterioration in asset quality metrics presents risks that the market may be ignoring with classified loans to total loans increasing from 1.78% to 2.00% loans past due 30+ days rising from 0.53% to 0.69% and non-performing loans increasing from $64.2 million to $69.5 million quarter-over-quarter. Management's disclosure that the $2.3 million in reserves for individually evaluated loans was concentrated within the commercial real estate portfolio on credits that were noted as having declining cash flows based on recent financial data suggests emerging stress in their CRE portfolio. While loan payments remain current this concentration in a sector with weakening cash flows could lead to higher charge-offs if economic conditions deteriorate particularly given their significant exposure to commercial real estate loans totaling $4.9 billion. The ratio of classified loans to total loans of 2.00% as of March 31 2026 was an increase of 22 basis points from December 31 2025 and 6 basis points from the comparative quarter ended 2025 indicating a negative trend in credit quality metrics that warrants closer scrutiny.
The quarterly decline in total loans of $42.9 million 2.4% annualized contradicts management's optimistic economic outlook and raises concerns about sustainable loan growth momentum. While they attribute this to timing differences origination volume contracted from the trailing quarter but expanded by comparison with the same quarter of prior years the simultaneous increase in loan payoffs/repayments to $442.2 million up from $418.1 million in the prior quarter suggests potential refinancing activity or borrower deleveraging. This trend could persist if interest rate volatility continues or if borrowers become more cautious about taking on new debt potentially constraining the bank's ability to grow its interest-earning asset base. During the quarter gross loan originations/draws totaled approximately $388.7 million while gross payoffs/repayments of loans totaled $442.2 million highlighting a net outflow in loan activity that contrasts with the 3.6% year-over-year loan growth figure and suggests underlying weakness in new loan generation.
The sustainability of net interest margin expansion is questionable given that part of the improvement relies on declining benefits from acquired loan discount accretion which added only 8 basis points to loan yields in Q1 2026 versus 12 basis points in Q1 2025. As this accretion benefit diminishes over the life of acquired loans the bank will need to generate margin expansion purely through new loan pricing and deposit cost management which may become more challenging in a lower rate environment. The yield on loans increased just 1 basis point from the trailing quarter and 7 basis points year-over-year to 5.78% suggesting limited pricing power for new loans while their ability to further reduce deposit costs may be constrained as they've already customized pricing for $1.0 billion of deposits. The accretion of discounts from acquired loans added 8 basis points to loan yields during the quarter ended March 31 2026 as compared to adding 12 basis points for the quarter ended March 31 2025 indicating a diminishing tailwind to net interest margin that will need to be replaced by organic sources of margin improvement.
Increasing tax pressure represents an underappreciated risk that could constrain future earnings growth with the provision for income taxes rising 36.4% year-over-year to $12.2 million significantly outpacing pre-tax income growth. This caused the effective tax rate to increase to 26.6% from 25.3% in the prior year quarter and if this trend continues it could dampen net income expansion even if pre-tax performance improves. The bank's ability to benefit from tax credits and non-taxable revenue sources appears to be diminishing relative to growing pre-tax earnings as evidenced by the growing gap between their effective tax rate 26.6% and the federal and state blended statutory rate of approximately 29.6% suggesting fewer tax advantages available to offset their tax burden as earnings grow. Provision for income taxes was $12.196 million for the quarter ended March 31 2026 compared to $8.939 million for the quarter ended March 31 2025 representing a substantial increase that absorbed a meaningful portion of pre-tax income growth and could become a persistent headwind to bottom line expansion.

Peer Comparison

Companies in the Banks - Regional

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	KB	KB Financial Group Inc.	42,090.38 Bn	0.00 Bn	0.01 Mn	56.66 Bn
2	SHG	Shinhan Financial Group Co Ltd	33,919.15 Bn	0.00 Bn	0.00 Mn	40.46 Bn
3	BCH	Bank Of Chile	4,123.52 Bn	368.17 Bn	1.57 Mn	0.00 Bn
4	LYG	Lloyds Banking Group plc	360.83 Bn	0.00 Bn	0.00 Mn	42.37 Bn
5	FCAP	First Capital Inc	204.17 Bn	0.00 Bn	0.03 Mn	-
6	LARK	Landmark Bancorp Inc	187.97 Bn	0.00 Bn	0.00 Mn	0.00 Bn
7	NWG	NatWest Group plc	144.82 Bn	0.00 Bn	0.00 Mn	94.66 Bn
8	PNC	Pnc Financial Services Group, Inc.	101.80 Bn	0.00 Bn	0.00 Mn	21.42 Bn

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