TriCo Bancshares Reports $114.9 Million Net Income for Fiscal Year 2024

TriCo Bancshares reported a net income of $114.9 million for the fiscal year ending December 31, 2024, reflecting a decrease of $2.5 million or 2.1% compared to the previous year. The diluted earnings per share were $3.46, down 1.7% from $3.52 in 2023. The decline in profitability was primarily attributed to a significant increase in interest expense, which rose by 65.5% to $135.2 million, overshadowing a reduction in the provision for credit losses to $6.6 million from $24.0 million in the prior year. Net interest income on a fully tax-equivalent basis decreased by 7.2% to $332.5 million, driven by a contraction in the net interest margin to 3.71% from 3.96%.

In terms of operational developments, TriCo Bancshares continues to focus on its core banking services through its subsidiary, Tri Counties Bank, which operates 64 traditional branches and 4 in-store branches across 31 counties in California. The bank's total assets were approximately $9.7 billion as of December 31, 2024. The loan portfolio composition remained stable, with commercial real estate loans constituting 67.6% of total loans, while consumer loans accounted for 18.9%. The total loans outstanding decreased slightly to $6.8 billion, a 0.4% decline from the previous year, with nonperforming loans increasing to 0.65% of total loans.

Strategically, the company has been focused on enhancing its operational efficiency and customer engagement. The workforce consisted of 1,201 employees as of December 31, 2024, with a commitment to maintaining a diverse and inclusive workplace. The bank has also emphasized community involvement, with employees logging over 11,000 volunteer hours in support of various local organizations. Additionally, TriCo Bancshares has been actively managing its capital structure, with a tangible common equity to tangible assets ratio of 9.72% at year-end, up from 8.80% in 2023.

Looking ahead, TriCo Bancshares anticipates continued challenges in the competitive banking landscape, particularly in attracting and retaining deposits amid rising interest rates. The company is also preparing for potential regulatory changes as it approaches the $10 billion asset threshold, which could subject it to increased scrutiny from the Consumer Financial Protection Bureau. Management remains cautious about the economic outlook, particularly regarding inflation and interest rate fluctuations, which could impact loan demand and overall financial performance. The company is committed to maintaining adequate capital levels and liquidity to navigate these challenges effectively.