Executive Summary

Q1 2025 delivered resilient fundamentals amid rate-driven NII/NIM pressure: diluted EPS was $0.80, down 9% q/q and 4% y/y; NIM (FTE) eased 3 bps q/q to 3.73%, while ROAA was 1.09% and ROAE 8.54% .
EPS modestly beat Wall Street consensus by ~$0.02, while “revenue” (S&P-defined) missed by ~$4.8M; 6 EPS estimates and 5 revenue estimates underpin consensus inputs (actionable expectations reset for margin trajectory) [Values retrieved from S&P Global]*.
Balance sheet growth was constructive: loans +$52.3M (3.1% annualized) and deposits +$117.8M (5.8% annualized) q/q; liquidity strengthened to $308.3M, and L/D improved to 83.1% .
Credit provisioning rose (PCL $3.7M) on specific criticized credits migrating to higher risk grades/non-accrual; ACL/loans increased to 1.88%, and coverage vs NPLs at ~234% supports loss absorbing capacity .
Near-term stock catalysts: deposit cost down 3 bps q/q, stable deposit mix (30.7% avg noninterest-bearing), and management’s expectation for incremental yield improvement and funding cost reduction as prior rate cuts flow through and curve shape normalizes .

What Went Well and What Went Wrong

What Went Well
- Solid organic growth: loans +$52.3M and deposits +$117.8M q/q; L/D ratio improved to 83.1%, supporting future earning asset deployment .
- Deposit costs fell: average cost of total deposits decreased 3 bps q/q to 1.43%; NIM held at 3.73%, higher than 3.68% a year ago .
- Liquidity and capital intact: ~$4.1B readily available unused funding sources; no brokered deposits or FRB facilities, and tangible capital ratio of 9.9% .
- Management tone positive: “we expect continued incremental increases in earning asset yields as well as incremental reductions in funding costs.” — CFO Peter Wiese .
What Went Wrong
- Rate reset drag: net interest income declined $1.6M q/q with loan interest income -$2.3M as the tail-end of Fed cuts impacted floating-rate earning assets .
- Provisioning step-up: PCL rose to $3.7M (vs $1.7M in Q4) on increased reserves for individually evaluated credits; classified loans ratio rose to 1.94% .
- Efficiency ratio worsened to 60.42% (from 59.56% q/q) on fewer calendar days and higher salary/benefits, limiting operating leverage .
- Nonperformers increased: NPLs reached $54.9M (vs $44.1M in Q4) and past dues 30+ days rose to $44.8M, though coverage remains robust .

Financial Results

Core P&L and Margin Trend

Metric	Q1 2024	Q4 2024	Q1 2025
Diluted EPS ($)	$0.83	$0.88	$0.80
Net Interest Income ($MM)	$82.736	$84.090	$82.542
Noninterest Income ($MM)	$15.771	$16.275	$16.073
Operating “Revenue” ($MM) NII+Noninterest	$98.507	$100.365	$98.615
Net Interest Margin (FTE) (%)	3.68%	3.76%	3.73%
Efficiency Ratio (%)	57.36%	59.56%	60.42%
Provision for Credit Losses ($MM)	$4.305	$1.702	$3.728
ROAA (%)	1.13%	1.19%	1.09%
ROAE (%)	9.50%	9.30%	8.54%

Balance Sheet and Funding

Metric	Q1 2024	Q4 2024	Q1 2025
Total Assets ($B)	$9.814	$9.674	$9.820
Total Loans ($B)	$6.801	$6.769	$6.821
Total Deposits ($B)	$7.988	$8.088	$8.205
Loan/Deposit Ratio (%)	85.14%	83.69%	83.13%
Avg Cost of Total Deposits (%)	1.21%	1.46%	1.43%
Avg Noninterest-Bearing Deposits (% of avg)	33.8%	31.8%	30.7%
Liquidity – Cash and due from banks ($MM)	$82.836	$144.956	$308.250

Credit Quality

Metric	Q1 2024	Q4 2024	Q1 2025
ACL / Total Loans (%)	1.83%	1.85%	1.88%
Loans Past Due 30+ ($MM)	$16.474	$32.711	$44.753
Nonperforming Loans ($MM)	$34.242	$44.096	$54.854
Nonperforming Assets ($MM)	$36.735	$46.882	$57.539
Classified Loans / Total Loans (%)	1.12%	1.74%	1.94%
Coverage: ACL / NPLs (%)	~363%	284%	234%

Actual vs Wall Street Consensus (S&P Global) – Q1 2025

Metric	Consensus	Actual	Surprise
Primary EPS ($)	0.783 (6 ests) [Values retrieved from S&P Global]*	0.800	+$0.017 — bold modest beat
Revenue ($MM)	99.572 (5 ests) [Values retrieved from S&P Global]*	94.802 [Values retrieved from S&P Global]*	-$4.770 — bold miss

Loan Composition (Ending Balances)

Category	Q1 2025 ($MM)	Q4 2024 ($MM)
CRE – Non-Owner Occupied	4,634.446	4,577.632
Consumer	1,279.878	1,281.059
Commercial & Industrial	457.189	471.271
Construction	298.319	279.933
Agriculture Production	144.588	151.822
Leases	6.354	6.806
Total Loans, Gross	6,820.774	6,768.523

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net interest margin / NII trajectory	2025 outlook	Qualitative: expansion from funding cost reductions noted in Q4 commentary	Qualitative: “expect continued incremental increases in earning asset yields and incremental reductions in funding costs”	Maintained qualitative; no numeric range
Deposit strategy	Ongoing	Customized pricing strategies: $1.05B deposits at 3.59% (Dec)	$0.93B deposits at 3.43% (Mar)	Lower weighted avg rates (positive)
Capital return (dividend)	Q2 2025	$0.33/share (maintained through Q1)	Declared $0.33/share payable June 20, 2025	Maintained
Liquidity posture	Ongoing	Primary sources ~$4.1B (Dec)	Readily available unused funding sources ~$4.1B (Mar)	Maintained

Note: No formal quantitative revenue/EPS guidance ranges were provided; management commentary was qualitative on NIM, earning asset yields, and funding costs .

Earnings Call Themes & Trends

Transcript for Q1 2025 earnings call was not available in our document catalog despite search; we used press releases and the investor presentation to track themes [ListDocuments returned 0 for earnings-call-transcript].

Topic	Q3 2024 (Prev Q-2)	Q4 2024 (Prev Q-1)	Q1 2025 (Current)	Trend
Net interest margin & cost of funds	NIM expanded to 3.71%; deposit costs rose q/q; competitive pricing pressures	NIM expanded to 3.76%; funding costs fell, improved product rate mix	NIM 3.73%; deposit cost -3 bps q/q; expect further yield improvement and funding cost reductions	Stabilizing NIM; improving funding mix
Deposit mix & noninterest-bearing	Avg NIBD 31.7%; continued migration to interest-bearing	Avg NIBD 31.8%	Avg NIBD 30.7%	Gradual decline in NIBD share
Liquidity & funding sources	Primary liquidity $4.10B; cash $274.9M	Primary liquidity $4.12B; cash $96.4M	Unused funding sources ~$4.1B; cash $308.3M	Strong, stable
Credit quality & provisioning	PCL $0.22M; specific reserves increased; classified loans 1.76%	PCL $1.70M linked to loan growth; classified loans 1.74%	PCL $3.73M; criticized credits migrating; classified loans 1.94%	Mixed: NPLs/past dues up; coverage still strong
Macro/rates	Anticipated and recent cuts reshaped curve; outlook aids long-term revenue/EPS	Three cuts (100 bps) since Sep; NIM/NII growth via lower funding costs	No Q1 rate changes; prior cuts pressured floating loans; expect incremental yield/funding cost improvements	Curve normalization benefit offsetting lag

Management Commentary

“Our first quarter results demonstrate our continued efforts to remain focused on the core business activities of adding customers, growing deposits and originating loans... we have completed our most recent CRA examination resulting in a rating of Outstanding.” — Rick Smith, CEO .
“Both net interest margin and net interest income slightly contracted during the quarter as the tail end of Federal Funds rate cuts impacted floating rate earning assets... we expect continued incremental increases in earning asset yields as well as incremental reductions in funding costs.” — Peter Wiese, CFO .
Investor deck highlights: tangible capital ratio 9.9%; no reliance on brokered deposits/FRB facilities in 2025/2024; diverse deposit base (~50/50 consumer/business) .

Q&A Highlights

We searched for a Q1 2025 earnings call transcript (earnings-call-transcript) and found none in the catalog; therefore Q&A highlights and any call-based guidance clarifications are unavailable from primary sources at this time [ListDocuments returned 0 for earnings-call-transcript].

Estimates Context

EPS: Consensus $0.783 (6 estimates); actual $0.800 — modest beat likely driven by lower deposit costs and disciplined opex despite fewer calendar days; watch for modest upward revisions to out-quarter EPS if NIM stabilizes [Values retrieved from S&P Global]* .
“Revenue”: Consensus $99.572M (5 estimates); actual $94.802M — miss consistent with lower loan interest income from floating-rate reset impact; expect revisions to revenue trajectory alongside rate path and earning asset mix [Values retrieved from S&P Global]* .
Target price consensus: ~$49.33 (6 estimates) [Values retrieved from S&P Global]*.

Key Takeaways for Investors

Deposit cost tailwinds and liquidity strength position TCBK for incremental NIM improvement as prior rate cuts roll through and the curve normalizes; monitor quarterly progression of NIM and deposit beta .
Credit is manageable but in transition: higher PCL tied to specific criticized credits and rising NPLs/past dues; robust ACL/NPL coverage supports resilience — watch classified loans trajectory and substandard balances .
Balance sheet growth and mix: loans and deposits both grew; L/D ratio improved to 83.1%, providing capacity to deploy into higher-yield assets as conditions permit .
Operating efficiency: ratio up to 60.42% on quarter length and higher salary/benefits; strategic hires in growth markets suggest opex investment ahead of revenue capture — assess operating leverage in subsequent quarters .
Capital return stable: dividend maintained at $0.33/share; approximately 740k shares remain authorized for repurchase (per deck); tangible capital ratio trending higher .
Catalysts: confirmation of deposit cost declines, NIM trajectory stabilization, and any resolution of criticized credits; downside risks include further credit migration and weaker floating-rate loan yields .
Near-term trade view: neutral-to-constructive pending evidence of margin stabilization and credit normalization; medium-term thesis hinges on differentiated funding, deposit diversity, disciplined underwriting, and capital strength .

Additional relevant press releases: TriCo declared a $0.33 dividend payable June 20, 2025 (record June 6) ; the bank restructured business and commercial management teams to deepen specialization across client sizes and industries .

*Values retrieved from S&P Global.

TRICO BANCSHARES / (TCBK)·Q1 2025 Earnings Summary