TriCo Bancshares (NASDAQ:TCBK) Exceeds Q2 Expectations

July 24, 2025 at 08:23 AM EDT

TCBK Cover Image

California regional bank TriCo Bancshares (NASDAQ: TCBK) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 5.9% year on year to $103.6 million. Its GAAP profit of $0.84 per share was 2.9% above analysts’ consensus estimates.

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TriCo Bancshares (TCBK) Q2 CY2025 Highlights:

Net Interest Income: $86.52 million vs analyst estimates of $84.76 million (5.5% year-on-year growth, 2.1% beat)
Net Interest Margin: 3.9% vs analyst estimates of 3.8% (20 basis point year-on-year increase, 11.3 bps beat)
Revenue: $103.6 million vs analyst estimates of $101 million (5.9% year-on-year growth, 2.6% beat)
Efficiency Ratio: 59% vs analyst estimates of 60% (1 percentage point beat)
EPS (GAAP): $0.84 vs analyst estimates of $0.82 (2.9% beat)
Market Capitalization: $1.38 billion

Company Overview

Founded in 1975 and headquartered in Chico, California, TriCo Bancshares (NASDAQ: TCBK) operates Tri Counties Bank, providing personal, small business, and commercial banking services through branches across California.

Sales Growth

Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities.

Over the last five years, TriCo Bancshares grew its revenue at a decent 5.4% compounded annual growth rate. Its growth was slightly above the average bank company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. TriCo Bancshares’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 4% over the last two years. TriCo Bancshares Year-On-Year Revenue Growth Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, TriCo Bancshares reported year-on-year revenue growth of 5.9%, and its $103.6 million of revenue exceeded Wall Street’s estimates by 2.6%.

Net interest income made up 83.3% of the company’s total revenue during the last five years, meaning TriCo Bancshares barely relies on non-interest income to drive its overall growth.

TriCo Bancshares Quarterly Net Interest Income as % of Revenue

While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.

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Tangible Book Value Per Share (TBVPS)

The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.

When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

TriCo Bancshares’s TBVPS grew at a solid 6.3% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 12.3% annually over the last two years from $23.30 to $29.40 per share.

TriCo Bancshares Quarterly Tangible Book Value per Share

Over the next 12 months, Consensus estimates call for TriCo Bancshares’s TBVPS to grow by 8.9% to $32.01, decent growth rate.

Key Takeaways from TriCo Bancshares’s Q2 Results

We enjoyed seeing TriCo Bancshares beat analysts’ expectations across the board this quarter. Overall, this print had some key positives. The stock remained flat at $42.37 immediately following the results.

So should you invest in TriCo Bancshares right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.

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