Executive Summary

EPS of $1.04 beat consensus $0.91 by ~~$0.13 (~~+14%), driven by higher NII (FTE), a 4 bp NIM (FTE) expansion to 3.92%, lower provisioning, and a $2.5M gain on early subordinated debt extinguishment; revenue was essentially in line with consensus ($106.9M vs ~$107.1M)* .
Operating leverage improved: NII (GAAP) rose to $89.6M (+3.5% QoQ) and the efficiency ratio improved to 56.18% from 59.00% in Q2; ROAA rose to 1.36% and ROE to 10.47% .
Credit metrics remained controlled (ACL/loans 1.78%; NPAs/Assets 0.72%), while loan balances grew modestly (+$47.8M QoQ; +4.8% YoY) and deposits dipped slightly QoQ (-$41.3M), with non-interest-bearing deposits averaging 30.5% .
Capital return stepped up: the quarterly dividend was raised to $0.36 (+$0.03) and the company repaid ~$60M junior subordinated debt, supporting NIM and earnings quality .
Management highlighted continued positive operating leverage, anticipates crossing $10B assets in 2026, and expects a steepening curve and repricing to support NII expansion while keeping a tight lid on expenses .

What Went Well and What Went Wrong

What Went Well

Positive operating leverage: NII (FTE) rose to $89.8M (+3.5% QoQ) on a 4 bp NIM (FTE) increase to 3.92%; efficiency ratio improved to 56.18% from 59.00% in Q2 .
Strategic balance sheet actions: Repayment of ~$60M junior subordinated debt reduced interest expense; a $2.5M gain on early debt retirement supported noninterest income despite securities losses .
Management tone constructive: “positive trends…led to positive operating leverage and growth in return on equity…anticipate crossing the $10 billion threshold in 2026,” and “balance sheet repricing remains ahead of expectations…steepening yield curve will likely contribute positively to net interest income expansion” (CEO/CFO) .

What Went Wrong

Mixed deposit trends: deposits decreased $41.3M QoQ (2.0% annualized), though still up $297.4M YoY; average non-interest-bearing deposit mix held at 30.5% .
Securities losses: $(2.1)M loss on sale of investment securities offset part of noninterest income tailwinds in the quarter .
Credit normalization signs: NPAs/Assets increased to 0.72% from 0.68% in Q2 and 0.45% in Q3’24; charge-offs were $0.7M with net provision of $0.7M, though overall ACL coverage remained robust (ACL/NPL ~190%) .

Financial Results

Headline metrics vs. prior periods

Metric	Q3 2024	Q2 2025	Q3 2025
Net Interest Income ($USD Millions)	$82.6	$86.5	$89.6
Noninterest Income ($USD Millions)	$16.5	$17.1	$18.0
Total Revenue (NII + Noninterest) ($USD Millions)	$99.1	$103.6	$107.6
Diluted EPS ($)	$0.88	$0.84	$1.04
Net Interest Margin (FTE) (%)	3.71%	3.88%	3.92%
Efficiency Ratio (%)	60.02%	59.00%	56.18%

Notes: Total Revenue shown as NII (GAAP) + Noninterest Income (GAAP), both from reported tables.

Key KPIs and credit

KPI	Q3 2024	Q2 2025	Q3 2025
ROAA (%)	1.20%	1.13%	1.36%
ROE (%)	9.52%	8.68%	10.47%
Loans to Deposits (%)	83.16%	83.08%	84.07%
Noninterest-bearing Deposits (% avg deposits)	31.7%	30.6%	30.5%
ACL / Loans (%)	1.85%	1.79%	1.78%
NPAs / Assets (%)	0.45%	0.68%	0.72%
Dividend per Share ($)	$0.33	$0.33	$0.36

Balance sheet growth

Loans: +$47.8M QoQ (2.7% annualized), +$322.9M YoY; Deposits: -$41.3M QoQ (2.0% annualized), +$297.4M YoY .
Investment securities: -$80.8M QoQ annualized; sales of $28.5M and net prepayments/maturities of $143.6M; mix supportive of NII/NIM .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share (quarterly)	Ongoing	$0.33 (Q2 2025)	$0.36 (Q3 2025)	Raised
Net Interest Income/NIM (directional)	Near-term	Stable NIM outlook (Q2 commentary)	Expect NII expansion; NIM supported by steepening curve and repricing (Q3 commentary)	Raised (directional)
Asset size milestone	2026	Not previously stated	Anticipate crossing $10B in 2026	New disclosure
Operating expenses	Near-term	Focused on efficiency; efficiency ratio 59.00% (Q2)	Continued discipline; efficiency ratio improved to 56.18% (Q3)	Improved (results)

No formal numerical revenue/EPS guidance provided; management provided directional commentary on NII/NIM and expense discipline .

Earnings Call Themes & Trends

(Transcript not available in the document set; themes synthesized from press releases and disclosures.)

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
NIM/NII trajectory	NIM pressured by rate cuts; expecting incremental yield increases and funding cost reductions	Stable NIM outlook; funding cost improvements; NII growth	NIM (FTE) up to 3.92%; expect NII expansion with steepening curve and repricing	Improving
Deposit mix/costs	Avg NIBD ~30.7%; cost of total deposits 1.43%	Avg NIBD ~30.6%; cost of total deposits 1.37%	Avg NIBD 30.5%; cost of total deposits 1.39%	Stable/low-cost base maintained
Credit quality/ACL	ACL/loans 1.88%; NPAs/Assets 0.59%	ACL/loans 1.79%; NPAs/Assets 0.68%	ACL/loans 1.78%; NPAs/Assets 0.72% (coverage ~190% of NPLs)	Slight normalization; coverage robust
Capital actions	Regular dividend; buybacks; no specific debt actions	Planned repayment of ~$57.7M sub debt by 9/30	Sub debt ~$60M repaid; dividend raised to $0.36	Accretive to NIM/EPS
Macro/tariffs	Tariff uncertainty cited in provisioning assumptions	Tariff/policy risks monitored; reserve overlay maintained	Tariff/macro risks still cited; yield-curve steepening supportive	Monitoring; cautious overlays maintained
Expansion/footprint	—	—	New SF West Portal branch; team includes former First Republic bankers	Targeted growth

Management Commentary

CEO (Rick Smith): “We continue to see positive trends…led to both positive operating leverage and growth in return on equity. While we anticipate crossing the $10 billion threshold in 2026, our ability to execute on our long-term strategies remain our primary focus.”
CFO (Peter Wiese): “Loan production and origination activities continue to increase while balance sheet repricing remains ahead of expectations. The migration towards a steepening yield curve will likely contribute positively to net interest income expansion while management remains diligent about controlling expenses despite the persistence of an inflationary environment.”

Q&A Highlights

The Q3 2025 earnings call transcript was not available in our document set despite targeted searches. We reviewed the 8‑K, the full press release, and investor presentation in lieu of the call and will update with Q&A details once a transcript is accessible. Searches covered TCBK 8‑K/press releases and third-party transcript repositories between Sept 1–Nov 30, 2025, but returned no transcript documents in the system .

Estimates Context

EPS: Actual $1.04 vs consensus ~$0.91* → beat by ~~$0.13 (~~+14%) .
Revenue: Actual ~$106.9M vs consensus ~$107.1M* → essentially in line (slight miss of ~0.2%)*.
Net income (normalized): Actual $34.0M vs consensus ~$30.1M* → beat of ~$3.9M.

Metric	Consensus	Actual	Surprise
EPS (Primary)	~$0.91*	$1.04	Beat (~+14%)*
Revenue ($USD Millions)	~$107.08*	~$106.87*	~-0.2% (inline)*
Net Income Normalized ($USD Millions)	~$30.09*	$34.02	Beat (~+13%)*
Target Price (Mean)	$49.33*	$49.33*	—

*Values retrieved from S&P Global.

Drivers vs. estimates: Upside to EPS and net income driven by stronger NII (FTE), a 4 bp NIM expansion, lower provision QoQ, and a $2.5M gain on debt extinguishment; revenue essentially in line given modest securities losses offset by higher service/fee income .

Key Takeaways for Investors

Earnings quality improved: Core spread expansion, efficiency gains, and debt cost reductions supported a clean EPS beat; continued NIM tailwinds are plausible if curve steepens as management expects .
Credit normalization remains contained: Slight uptick in NPAs/Assets to 0.72% but coverage robust (ACL/NPL ~190%); provisioning moderated QoQ .
Capital return and discipline: Dividend raised to $0.36 and buybacks ongoing; capital ratios remain well above thresholds, with tangible capital at 10.4% .
Growth levers intact: Modest loan growth QoQ (+2.7% annualized) with deposit base stability (NIBD ~30.5%); targeted market expansion (new SF West Portal branch) adds relationship depth .
Estimate revisions: Upward bias to near-term EPS likely given NIM trajectory and lower debt costs; revenue trajectory steady with fee momentum offsetting periodic securities impacts* .
Risk watch: Macro/tariff policy uncertainty and ongoing CRE/farmland credit normalization; deposit competition and funding costs warrant continued monitoring .
Trading setup: Positive catalyst mix (EPS beat, dividend hike, NIM expansion) supports constructive near-term sentiment; monitor updates on deposit trends and credit migration.

Appendix: Other Q3 2025 Press Releases

Branch expansion: Tri Counties Bank opened a new branch in San Francisco’s West Portal neighborhood, staffed by experienced local bankers, enhancing Bay Area presence .

Supporting Data Highlights

Operating drivers: NII (FTE) $89.8M (+3.5% QoQ); NIM (FTE) 3.92% (+4 bps QoQ); debt extinguishment gain ~$2.5M; securities sale loss $(2.1)M .
Balance sheet actions: Repayment of ~$60M junior subordinated debt; liquidity and funding remain conservative with no brokered deposits and ~$4.2B in unused funding sources (per investor materials) .

All figures above sourced from the company’s Q3 2025 8‑K and press release unless otherwise noted. Estimates and targets marked with an asterisk (*) are from S&P Global.

TRICO BANCSHARES / (TCBK)·Q3 2025 Earnings Summary